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Premier Service Bank Announces Earnings for the First Quarter of 2010

 

 

 


Press Release

Source: Premier Service Bank

Tuesday April 20, 2010, 1:21 pm EDT

 

RIVERSIDE, Calif.--(BUSINESS WIRE)--Premier Service Bank, Riverside, California (OTCBB:PSBK - News) today announced its financial results for the first quarter of 2010.

 

For the quarter ended March 31, 2010, the bank reported net income of $94 thousand, or $0.07 per diluted share, compared to net income of $32 thousand, or $0.02 per diluted share for the quarter ended March 31, 2009. The increase in earnings between the respective periods is primarily attributed to better control of funding costs and non-interest expenses; however, the increase in earnings was partially offset by the increase in the provision to the bank’s allowance for loan losses. The provision to the allowance for loan losses for the first quarter of 2010 totaled $340 thousand, compared to $110 thousand for the same period in 2009.

 

At March 31, 2010, the Bank had $6.0 million of non-performing loans, representing 4.68% of the Bank’s total loans, compared to $4.7 million of non-performing loans, or 3.8% of total loans, at March 31, 2009. The Bank had foreclosed real estate of $1.44 million at March 31, 2010, compared to foreclosed real estate of $572 thousand and other foreclosed assets of $166 thousand at March 31, 2009. At March 31, 2010, non-accrual loans totaled $5.25 million, representing 4.09% of total loans at that date, compared to non-accrual loans of $4.7 million at March 31, 2009, representing 3.8% of total loans at that date. The allowance for loan losses totaled $2.19 million at March 31, 2010, or 1.71% of total loans as of that date, compared to $1.67 million at March 31, 2009, or 1.35% of total loans as of that date.

 

At March 31, 2010, the Bank had total assets of $158 million, representing a decrease of $2.2 million or <1.4%> less than total assets of $160.5 million at March 31, 2009. The Bank had $15 million in FHLB borrowings at March 31, 2010, representing a decrease of $9 million or <45%> from the FHLB borrowings of $26 million at March 31, 2009. Total deposits at March 31, 2010 were $126 million, representing 8.2% growth over total deposits of $116.5 million at March 31, 2009. Non-interest bearing demand deposits totaled $36.3 million at March 31, 2010, representing 28.8% of total deposits at that date, compared to $39.7 million of non-interest bearing demand deposits at March 31, 2009, which represented 34.2% of total deposits at that date.

 

The Bank’s gross loan portfolio grew to $128.3 million at March 31, 2010, representing a 3.8% increase over gross loans of $123.6 million at March 31, 2009. Unfunded credit commitments stood at $20.1 million at March 31, 2010, representing a 1.5% increase compared to unfunded commitments of $19.8 million at March 31, 2009.

 

The Bank’s net interest margin for the quarter ended March 31, 2010 was 5.30%, an increase of 0.65% as compared to the net interest margin of 4.65% for the first quarter of 2009.

 

At March 31, 2010, the Bank remained well capitalized under applicable regulatory guidelines. Total shareholders’ equity at March 31, 2010 was $16.5 million, representing a decrease of $716 thousand, or <4.15%> compared to total shareholders’ equity of $17.2 million at March 31, 2009.

 

The Bank’s President and Chief Executive Officer, Kerry Pendergast, stated, “Throughout 2009 and into the 2010 calendar year we have focused on improving our core earnings and overall operating efficiency; this has been accomplished by renegotiating contracts with key vendors and realigning our staff to meet the realities of our current operating environment. We have also taken advantage of our strong liquidity position to retire FHLB borrowing advances, which has further improved our core earnings position.”

 

Pendergast went on to say, “The bank enjoyed an 8.2% growth in deposits in the first quarter of 2010, when compared to the same period in 2009, and while we’re pleased with the increase, we have intensified our marketing / business development efforts to take advantage of the positive positioning that community banks are gaining in the marketplace; both regionally and nationally.

 

“We are cautiously optimistic with the progress we have made in improving our core earnings, as well as our operating efficiency; this provides additional cushion for the institution as we continue to make contributions to the Bank’s allowance for loan losses, to address dynamics within the credit portfolio, as well as to meet the guidelines articulated by the regulators.”

 

Pendergast said in closing, “We are focused on reducing the overall number of non-performing loans and we are working closely with our borrowers to find an orderly and timely resolution to the issues that resulted in their failure to perform. Effectively identifying and managing risk during this period of unprecedented economic turmoil continues to be the ongoing focus of this institution.”

 

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 http://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.

 

 

See the unaudited Financial Data:

 

         
Financial Data - Premier Service Bank
(Unaudited)
Quarter Ended
(In Thousands)   Mar. 31, 2010 Dec. 31, 2009 Sept. 30, 2009 June 30, 2009 Mar. 31, 2009
 
Interest income (not taxable equivalent)
$ 2,270 $ 2,337 $ 2,305 $ 2,303 $ 2,269
Interest expense   425     522     596     605     626  
Net interest income 1,845 1,815 1,709 1,698 1,643
Provision for loan losses   340     1,020     255     485     110  
Net interest income after provision for loan losses
1,505 795 1,454 1,213 1,533
Non-interest income 195 203 200 188 177
Non-interest expense   1,573     1,664     1,507     1,705     1,687  
Income before income taxes 127 (666 ) 147 (304 ) 23
(Benefit)/Provision for income taxes   33     (15 )   47     (22 )   (9 )
Net income $ 94   $ (651 ) $ 100   $ (282 ) $ 32  
 
Quarter Ended
(In Thousands)   Mar. 31, 2010 Dec. 31, 2009 Sept. 30, 2009 June 30, 2009 Mar. 31, 2009
Per share:
Net income - basic $ 0.07 $ (0.52 ) $ 0.07 $ (0.23 ) $ 0.02
Weighted average shares used in basic 1,261 1,261 1,261 1,261 1,261
Net income - diluted $ 0.07 $ (0.52 ) $ 0.07 $ (0.23 ) $ 0.02
Weighted average shares used in diluted 1,261 1,261 1,261 1,261 1,261
Book value at period end $ 9.91 $ 9.83 $ 10.36 $ 10.26 $ 10.51
Ending shares 1,261 1,261 1,261 1,261 1,261
 
 
Balance Sheet - At Period-End
Cash and due from banks $ 12,486 $ 17,707 $ 15,847 $ 15,773 $ 12,835
Investments and Fed fund sold 11,050 11,495 13,562 15,468 18,531
Gross Loans 128,306 128,591 125,888 128,039 123,609
Deferred fees (321 ) (348 ) (336 ) (345 ) (335 )
Allowance for loan losses (2,188 ) (1,900 ) (1,221 ) (2,155 ) (1,670 )
Net Loans 125,797 126,343 124,331 125,539 121,604
Other assets   8,934     8,434     8,034     7,565     7,534  
Total Assets $ 158,267   $ 163,979   $ 161,774   $ 164,345   $ 160,504  
 
Non-interest-bearing deposits $ 36,258 $ 39,034 $ 38,945 $ 41,281 $ 39,683
Interest-bearing deposits 89,764 87,760 84,802 82,225 76,789
Other liabilities 15,721 20,764 20,950 23,901 26,792
Shareholders' equity   16,524     16,421     17,077     16,938     17,240  
 
Total Liabilities and Shareholders' equity $ 158,267   $ 163,979   $ 161,774   $ 164,345   $ 160,504  
 
Asset Quality & Capital - At Period-End
Non-accrual loans $ 5,247 $ 5,054 $ 4,990 $ 5,380 $ 4,699
Loans past due 90 days or more 757 - 76 - -
Other real estate owned 1,436 823 1,178 572 572
Other bank owned assets   -     -     -     149     166  
Total non-performing assets $ 7,440   $ 5,877   $ 6,244   $ 6,101   $ 5,437  
 
Allowance for losses to loans, gross 1.71 % 1.48 % 0.97 % 1.68 % 1.35 %
Non-accrual loans to total loans, gross 4.09 % 3.93 % 3.96 % 4.20 % 3.80 %
Non-performing loans to total loans, gross 4.68 % 3.93 % 4.02 % 4.20 % 3.80 %
Non-performing asset to total assets 4.70 % 3.58 % 3.86 % 3.71 % 3.39 %
Allowance for losses to non-performing loans 36.44 % 37.59 % 24.10 % 40.06 % 35.54 %
 
Total capital to risk-adjusted assets 13.43 % 13.09 % 13.39 % 13.48 % 14.13 %
Tier one capital to risk-adjusted assets 12.18 % 11.84 % 12.46 % 12.22 % 12.88 %
Equity to average assets (leverage ratio) 10.20 % 9.80 % 10.24 % 10.53 % 10.98 %

Contact:

Premier Service Bank
Kerry L. Pendergast, President and CEO
Jessica Lee, Executive Vice President and CFO
951-274-2400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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