Premier Service Bank Announces Earnings for the Quarter and Year Ended December 31, 2008
January 28, 2009 8:49 PM ET
Premier Service Bank PSBK today announced its financial results for the quarter and year ended December 31, 2008.
For the year ended December 31, 2008, the bank reported a net loss of $100 thousand, or ($0.08) per diluted share, compared to net earnings of $566 thousand, or $0.44 per diluted share for the year ended December 31, 2007. Net loss for the fourth quarter of 2008 was $227 thousand, or ($0.18) per diluted share, compared to net earnings of $178 thousand, or $0.14 per diluted share for the fourth quarter of 2007. The decline in earnings between the respective periods is primarily attributed to the increased provisions to the bank’s allowance for loan losses, which for the year ended December 31, 2008 totaled $1.468 million, compared to $195 thousand for the year ended December 31, 2007; and for the fourth quarter of 2008 totaled $595 thousand, compared to $108 thousand for the same period in 2007.
At December 31, 2008, 2.84% of the Bank’s loans were nonperforming, compared to 0.64% nonperforming loans at December 31, 2007. The Bank had foreclosed real estate of $572 thousand and other foreclosed assets of $166 thousand at December 31, 2008, and none at December 31, 2007. At December 31, 2008, non-accrual loans totaled $2.83 million, representing 2.25% of total loans at that date, compared to non-accrual loans of $0.7 million at December 31, 2007, representing 0.64% of total loans at that date. All loans delinquent 90 days or more were on non-accrual at December 31, 2008 and 2007. The allowance for loan losses totaled $1.60 million at December 31, 2008, or 1.27% of total loans as of that date, compared to $1.26 million at December 31, 2007, or 1.13% of total loans as of that date.
At December 31, 2008, the Bank had total assets of $151.5 million, representing an increase of $15.7 million, or 8.8% growth over total assets of $139.3 million at December 31, 2007. Total deposits at December 31, 2008 were $110.5 million, representing 1% growth over total deposits of $109.4 million at December 31, 2007. Non-interest bearing demand deposits totaled $38 million at December 31, 2008, representing 34.4% of total deposits at that date, compared to $38.4 million of non-interest bearing demand deposits at December 31, 2007, which represented 35.1% of total deposits at that date.
The Bank’s gross loan portfolio grew to $125.7 million at December 31, 2008, representing a 14.2% increase over gross loans of $110.1 million at December 31, 2007. Unfunded credit commitments stood at $17.9 million at December 31, 2008, representing a 43.4% decrease compared to unfunded commitments of $31.6 million at December 31, 2007. The decrease in unfunded commitments was due, in part, to an overall lack of demand in the marketplace for credit line financing.
The Bank’s net interest margin for the year ended December 31, 2008 was 5.17%, a decrease of 0.13% compared to 2007. The Bank’s net interest margin for the quarter ended December 31, 2008 was 4.98%, a decrease of 0.38% compared to the fourth quarter of 2007.
At December 31, 2008, the Bank remained well capitalized under applicable regulatory guidelines, and continued to have no sub-prime residential loans in its portfolio. Total shareholders’ equity at December 31, 2008 was $13.2 million, representing an increase of $77 thousand, or 0.6% over total shareholders’ equity of $13.1 million at December 31, 2007.
President and Chief Executive Officer Kerry Pendergast stated, “Clearly 2008 was a year of unprecedented turmoil in the world’s financial markets, with economic fallout and uncertainty having a profound impact on the banking sector as a whole. The breadth of the declines have put extraordinary stress on the credit portfolios of a large number of banks. Well managed institutions have responded by prudently increasing contributions to their allowances for loan losses during this uncertain period; this was certainly the case for Premier Service Bank throughout the 2008 calendar year. For the 12-month period ended December 31, 2008 the bank contributed $1.468 million to its allowance for loan losses, compared to $195 thousand for the same 12-month period in 2007; the significant decline in earnings is primarily the result of these increased contributions.”
Pendergast went on to say, “We are confident that Premier Service Bank is well positioned to meet the challenges faced by the industry. We believe that the long-term relationships we enjoy with our clients, many of which pre-date the opening of the bank, will serve us well as the region works towards regaining its economic footing. Additionally, the bank remains well capitalized under regulatory guidelines, has opted to participate in all of the additional insurance programs offered by the FDIC, and is continuing to grow its base as individuals and businesses continue to seek out those institutions that are locally owned and operated,” Pendergast said in closing.
Premier Service Bank is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. The Bank provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about Premier Service Bank is available at its website at www.premierservicebank.com.
Forward-looking Statements
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Premier Service Bank’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and in the following: Premier Service Bank’s ability to increase its assets, deposits and total loans, control expenses, retain critical personnel, manage interest rate risk, manage technological changes, address regulatory requirements, and other risks discussed from time to time in Premier Service Bank’s filings and reports with the Federal Deposit Insurance Corporation. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Premier Service Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read Premier Service Bank’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by Premier Service Bank with the FDIC.
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Financial Data - Premier Service Bank |
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(Unaudited) |
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Quarter Ended |
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(In Thousands) |
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Dec. 31, 2008 |
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Sept. 30, 2008 |
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June 30, 2008 |
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Mar. 31, 2008 |
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Dec. 31, 2007 |
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Interest income(not taxable equivalent) |
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$ |
2,447 |
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$ |
2,451 |
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$ |
2,342 |
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$ |
2,430 |
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|
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$ |
2,389 |
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Interest expense |
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|
650 |
|
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|
|
667 |
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|
632 |
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|
|
671 |
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|
676 |
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Net interest income |
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1,797 |
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1,784 |
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|
1,710 |
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|
1,759 |
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|
1,713 |
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Provision for loan losses |
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595 |
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|
470 |
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|
347 |
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|
56 |
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|
108 |
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Net interest income after |
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provision for loan losses |
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1,202 |
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1,314 |
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|
1,363 |
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|
1,703 |
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|
1,605 |
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Non-interest income |
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|
197 |
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|
206 |
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|
182 |
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|
178 |
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|
180 |
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Non-interest expense |
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1,813 |
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|
1,605 |
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|
1,557 |
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|
1,651 |
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|
1,516 |
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Income before income taxes |
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(414 |
) |
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(85 |
) |
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(12 |
) |
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|
230 |
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|
269 |
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(Benefit)/Provision for income taxes |
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(187 |
) |
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(52 |
) |
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(21 |
) |
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79 |
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|
91 |
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Net income |
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$ |
(227 |
) |
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$ |
(33 |
) |
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$ |
9 |
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$ |
151 |
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$ |
178 |
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Quarter Ended |
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(In Thousands) |
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Dec. 31, 2008 |
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Sept. 30, 2008 |
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June 30, 2008 |
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Mar. 31, 2008 |
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Dec. 31, 2007 |
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Per share: |
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Net income - basic |
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|
$ |
(0.18 |
) |
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$ |
(0.03 |
) |
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$ |
0.01 |
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$ |
0.12 |
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|
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$ |
0.14 |
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Weighted average shares used in basic |
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|
1,261 |
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|
1,259 |
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|
1,257 |
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|
1,256 |
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|
1,255 |
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Net income - diluted |
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$ |
(0.18 |
) |
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$ |
(0.03 |
) |
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$ |
0.01 |
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$ |
0.12 |
|
|
|
$ |
0.14 |
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Weighted average shares used in diluted |
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|
1,261 |
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|
|
1,259 |
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|
1,270 |
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|
1,270 |
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|
1,279 |
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Book value at period end |
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$ |
10.48 |
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$ |
10.58 |
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$ |
10.53 |
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$ |
10.66 |
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$ |
10.46 |
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Ending shares |
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|
1,261 |
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|
1,261 |
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|
1,257 |
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|
1,257 |
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|
1,255 |
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Balance Sheet - At Period-End |
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Cash and due from banks |
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$ |
4,315 |
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|
$ |
4,847 |
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$ |
5,572 |
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|
|
$ |
5,908 |
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|
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$ |
3,571 |
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Investments and Fed fund sold |
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|
15,843 |
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|
20,655 |
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22,812 |
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|
22,630 |
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|
21,813 |
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Gross Loans |
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125,684 |
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|
124,457 |
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|
123,980 |
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|
111,933 |
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|
110,045 |
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Deferred fees |
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(334 |
) |
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(353 |
) |
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|
(363 |
) |
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|
(375 |
) |
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|
(369 |
) |
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Allowance for loan losses |
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(1,596 |
) |
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|
(1,725 |
) |
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|
(1,634 |
) |
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|
(1,287 |
) |
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|
(1,259 |
) |
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Net Loans |
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123,754 |
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|
122,379 |
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|
121,983 |
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|
110,271 |
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|
|
|
108,417 |
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Other assets |
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|
7,590 |
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|
|
7,281 |
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6,186 |
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|
5,854 |
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|
5,531 |
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Total Assets |
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$ |
151,502 |
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|
|
$ |
155,162 |
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|
|
$ |
156,553 |
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|
$ |
144,664 |
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|
|
$ |
139,332 |
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Non-interest-bearing deposits |
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|
$ |
38,040 |
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|
$ |
41,834 |
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|
|
$ |
43,989 |
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|
|
$ |
43,461 |
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|
|
$ |
38,356 |
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|
Interest-bearing deposits |
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|
72,522 |
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|
|
|
73,269 |
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|
|
|
72,625 |
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|
|
|
66,124 |
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|
|
|
71,059 |
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|
Other liabilities |
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|
|
27,731 |
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|
|
|
26,722 |
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|
|
|
26,703 |
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|
|
|
21,681 |
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|
|
|
16,785 |
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|
Shareholders' equity |
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|
|
13,209 |
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|
|
|
13,337 |
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|
|
|
13,236 |
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|
|
|
13,398 |
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|
|
|
13,132 |
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Total Liabilities and Shareholders' Equity |
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|
$ |
151,502 |
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|
|
$ |
155,162 |
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|
|
$ |
156,553 |
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|
|
$ |
144,664 |
|
|
|
$ |
139,332 |
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|
|
|
|
|
|
|
|
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|
|
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|
Asset Quality & Capital - At Period-End |
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|
|
|
|
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|
|
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|
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||||||||||
|
Non-accrual loans |
|
|
$ |
2,833 |
|
|
|
$ |
3,738 |
|
|
|
$ |
4,707 |
|
|
|
$ |
1,055 |
|
|
|
$ |
700 |
|
|
Loans past due 90 days or more |
|
|
$ |
- |
|
|
|
$ |
290 |
|
|
|
$ |
302 |
|
|
|
$ |
160 |
|
|
|
$ |
- |
|
|
Other real estate owned |
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|
$ |
572 |
|
|
|
$ |
672 |
|
|
|
|
|
|
|
|
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|
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|
Other bank owned assets |
|
|
$ |
166 |
|
|
|
$ |
183 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Total non-performing assets |
|
|
$ |
3,571 |
|
|
|
$ |
4,883 |
|
|
|
$ |
5,009 |
|
|
|
$ |
1,215 |
|
|
|
$ |
700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for losses to loans, gross |
|
|
|
1.27 |
% |
|
|
|
1.39 |
% |
|
|
|
1.32 |
% |
|
|
|
1.15 |
% |
|
|
|
1.13 |
% |
|
Non-accrual loans to total loans, gross |
|
|
|
2.25 |
% |
|
|
|
3.00 |
% |
|
|
|
3.80 |
% |
|
|
|
0.94 |
% |
|
|
|
0.64 |
% |
|
Non-performing loans to total loans, gross |
|
|
|
2.84 |
% |
|
|
|
3.92 |
% |
|
|
|
4.04 |
% |
|
|
|
1.09 |
% |
|
|
|
0.64 |
% |
|
Non-performing asset to total assets |
|
|
|
2.36 |
% |
|
|
|
3.15 |
% |
|
|
|
3.20 |
% |
|
|
|
0.84 |
% |
|
|
|
0.50 |
% |
|
Allowance for losses to non-performing loans |
|
|
|
44.69 |
% |
|
|
|
35.33 |
% |
|
|
|
32.62 |
% |
|
|
|
105.93 |
% |
|
|
|
179.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total capital to risk-adjusted assets |
|
|
|
10.94 |
% |
|
|
|
11.16 |
% |
|
|
|
11.19 |
% |
|
|
|
12.10 |
% |
|
|
|
12.08 |
% |
|
Tier one capital to risk-adjusted assets |
|
|
|
9.71 |
% |
|
|
|
9.91 |
% |
|
|
|
9.94 |
% |
|
|
|
10.97 |
% |
|
|
|
10.96 |
% |
|
Equity to average assets (leverage ratio) |
|
|
|
8.50 |
% |
|
|
|
8.66 |
% |
|
|
|
9.07 |
% |
|
|
|
9.39 |
% |
|
|
|
9.46 |
% |
Premier Service Bank
Kerry L. Pendergast, President and CEO
Jessica Lee, Executive Vice President and CFO
951-274-2400
Copyright 2009 Business Wire