VALDOSTA, Ga., Oct. 28, 2008 (GLOBE NEWSWIRE) -- On Tuesday, October 28, 2008, PAB Bankshares, Inc. (Nasdaq:PABK), the parent company for The Park Avenue Bank, announced its consolidated financial results for the third quarter of 2008 and its plan to improve the Company's profitability in 2009 through reductions in operating expenses. The cost saving initiatives discussed below are part of the Company's overall strategy to maintain a strong capital position and increase earnings. During the third quarter of 2008, the Company added $7.3 million to its allowance for loan losses as a result of continued deterioration in problem assets. As a consequence, the Company reported a net loss of $2.9 million, or $0.32 per diluted share, for the three months ended September 30, 2008. "By increasing the allowance for loan losses, we will have more capacity and flexibility to address our problem assets," stated Company President and CEO M. Burke Welsh, Jr.
For the nine months ended September 30, 2008, the Company reported a net loss of $100,000, or $0.01 per diluted share, compared to net earnings of $9.1 million, or $0.93 per diluted share, for the same period in 2007. The year-to-date increase in the provision for loan losses of $8.95 million, the $2.5 million decrease in net interest income caused by nonperforming loans, the $534,000 net loss realized on other real estate owned and the $231,000 increase in legal and collection efforts related to nonperforming assets are the primary reasons for the decline in earnings this year.
"We are encouraged by the earnings of our core banking franchise. For the most part, we continue to enjoy strong market share and a stable core deposit base in our South Georgia markets," stated Welsh. For the year to date, the return on average assets ("ROA") of our South Georgia markets was a combined 1.59% compared to the -0.01% ROA of the Company as a whole.
For the third quarter of 2008, the Company's net interest margin was 3.20%, which was approximately the same as the 3.20% reported in the second quarter of 2008, but a 69 basis point decrease compared to the 3.89% reported in the third quarter of 2007. During the third quarter of 2008, the Company's nonperforming loans reduced interest income by approximately $858,000 and reduced the net interest margin by 30 basis points. This was slightly higher than the 28 basis point reduction in net interest margin in the second quarter of 2008, but was significantly higher than the seven basis point reduction in the third quarter of 2007. Excluding the impact of the nonperforming loans, the Company's third quarter 2008 net interest margin would have been approximately 3.50%, compared to 3.48% and 3.82% in the second quarter of 2008 and the third quarter of 2007, respectively.
Cost Saving Initiatives
The Company's Board of Directors approved a plan to reduce the Company's 2009 noninterest expense by at least 12% (approximately $3.6 million) of 2008 anticipated noninterest expense and to reduce the Company's workforce by up to 9% (approximately 30 positions) by the end of the first quarter of 2009. As part of the plan, the Company will close its offices in Jacksonville, Florida and Gwinnett County, Georgia, eliminate the employee positions in those markets including the two regional president positions, who also served as executive vice presidents of the Company, and reduce staffing levels bank-wide through attrition and consolidation of duties. Executive Vice Presidents David H. Gould, Jr. and William L. Kane were informed last week that their positions would be eliminated. They are eligible for the severance payment provisions provided in their employment agreements. Other employees impacted by this plan will also be eligible for a severance package based on Company policy. For the most part, other employee reductions are expected to occur through attrition and consolidation of responsibilities.
"While the Jacksonville and Gwinnett offices are in growing metropolitan markets, these have been two of our least productive offices," stated Welsh. Our Jacksonville office currently serves 124 households/ businesses (0.3% of our total), and we have a 0.04% market share of the deposits in Duval County, Florida, which ranks 27th of the 34 financial institutions in the county. Approximately $25.5 million loans (2.6% of our total) and $8.1 million deposits (0.8% of our total) are serviced from the Jacksonville office. Our Gwinnett office currently serves 230 households/ businesses (0.6% of our total), and we have a 0.17% market share of the deposits in Gwinnett County, Georgia, which ranks 39th of the 47 financial institutions in the county. Approximately $17.6 million loans (1.8% of our total) and $16.5 million deposits (1.6% of our total) are serviced from the Gwinnett office. Both offices will remain open with limited staffing and reduced hours to assist existing customers with their transition to our other branches through the end of January 2009.
We estimate that we will incur a one-time charge of approximately $2 million in the fourth quarter of 2008 related to the closure of these offices and the severance payments for those officers and employees affected by this business decision. Additional expense savings of approximately $960,000 should be realized during the quarter to help absorb this charge. In addition, we will seek to find the most cost efficient way to exit these facilities to potentially further reduce our losses.
Asset Quality
A summary of pertinent asset quality ratios for the Company as of September 30, 2008 follows.
* The Company reported total nonperforming assets of $65.3 million, or 5.19% of total assets, a $5.9 million increase during the quarter. The nonperforming assets consist of $43.5 million in nonaccrual loans, $9.8 million in loans classified as troubled-debt restructurings and $12.0 million in foreclosed real estate and other repossessed assets. * The Company has allocated approximately $6.4 million of its allowance for loan losses for the $43.5 million in nonaccrual loans and $9.8 million in loans classified as troubled-debt restructurings, resulting in a 12.0% reserve ratio on these nonperforming loans. * The underlying real estate collateral of our nonperforming loans consisted of (a) eight parcels of undeveloped land totaling 1,068 acres zoned for residential development with a net carrying value of $11.2 million, or an $10,500 per acre average, (b) 671 residential lots with a net carrying value of $16.9 million, or a $25,100 per lot average, (c) 85 residential houses with a net carrying value of $8.9 million, or a $104,000 per house average, and (d) 25 commercial properties with a net carrying value of $10.3 million, or a $386,000 per property average. The term "net carrying value" represents the book value of the loan less any allocated allowance for loan losses. * Foreclosed properties include (a) 238 acres of undeveloped land in three parcels zoned for residential development with a total carrying value of $2.3 million, or a $9,600 per acre average, (b) 116 developed residential lots with a total carrying value of $3.6 million, or a $31,000 per lot average, (c) 21 residential houses with a total carrying value of $4.0 million, or a $190,000 per house average, and (d) four commercial properties with a total carrying value of $1.9 million, or a $475,000 per property average. * Loans to three real estate developers for various residential construction and development projects in Georgia and Florida represent $24.4 million, or 37%, of total nonperforming assets. A total of $2.6 million in specific reserves has been established on these impaired assets. * Approximately $15.6 million, or 30% of total nonperforming loans, were in bankruptcy, which has limited our ability to resolve those problem assets. * Approximately 84% of nonperforming loans were construction and development loans, and these loans represented approximately 11% of the Company's total portfolio of construction and development loans. * The Company reported total loans past due 30-89 days of $8.2 million, or 0.84% of total loans, a $2.2 million increase during the quarter. These loans are not included in nonperforming assets at quarter end. Approximately 46% of the loans past due 30-89 days were construction and development loans. * The Company charged off $1.4 million in loans and recovered $59,000 in loans during the third quarter of 2008 for a net charge-off ratio of 0.56% of average loans (annualized). * The allowance for loan losses represented approximately 2.06% of total loans and 37.99% of total nonperforming loans.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 10:00 AM Eastern on Wednesday, October 29, 2008. The conference call will be broadcast via the Internet using Windows Media Player. The webcast URL is http://www.talkpoint.com/viewer/starthere.asp?Pres=123698. A link to the webcast is posted on the "Investor Relations" section of the Company's website at www.pabbankshares.com. Interested shareholders, industry analysts and members of the news media and the investment community wanting to participate in the live question and answer session following management's presentation may access the conference call by dialing (toll free) 800-860-2442 or (international) +1 412-858-4600.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may access an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-344-7529 or (International) +1 412-317-0088. The following replay passcodes will be required for playback access: 424070.
About PAB
The Company is a $1.3 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates in 20 branch offices and three loan production offices in 15 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our outlook on asset quality, branch closures and related charges and future cost savings, projected growth, capital position, our plans regarding our nonperforming assets, business opportunities in our markets and economic conditions, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting the Company, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in these forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans made by The Park Avenue Bank; (3) general economic conditions (both generally and in our markets) may continue to be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2007. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED
QUARTERLY Period Ended
FINANCIAL ------------------------------------------------------
DATA 09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 17,680 $ 17,460 $ 19,030 $ 21,013 $ 21,866
Interest
expense 8,460 8,598 9,685 10,956 11,084
---------------------------------------------------------------------
Net interest
income 9,220 8,862 9,345 10,057 10,782
---------------------------------------------------------------------
Provision for
loan losses 7,300 1,050 1,200 1,800 400
Other income 1,081 1,572 1,643 1,682 1,471
Other expense 7,510 7,191 7,829 7,440 7,471
---------------------------------------------------------------------
Income before
income tax
expense (4,509) 2,193 1,959 2,499 4,382
Income tax
expense (1,649) 730 662 858 1,523
---------------------------------------------------------------------
Net income $ (2,860)$ 1,463 $ 1,297 $ 1,641 $ 2,859
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 9,397 $ 9,043 $ 9,522 $ 10,230 $ 10,948
Per Share
Ratios:
Net income
- basic ** $ (0.31)$ 0.16 $ 0.14 $ 0.17 $ 0.30
Net income
- diluted ** (0.32) 0.15 0.14 0.17 0.29
Dividends
declared
for period -- 0.095 0.145 0.145 0.145
Dividend
payout ratio 0.00% 59.33% 102.39% 81.50% 47.14%
Book value at
end of
period ** $ 9.97 $ 10.26 $ 10.59 $ 10.38 $ 10.22
Common Share
Data:
Outstanding at
period end ** 9,324,407 9,324,407 9,337,641 9,406,956 9,474,954
Weighted
average
outstanding ** 9,324,407 9,328,241 9,364,691 9,437,037 9,594,060
Diluted
weighted
average
outstanding ** 9,325,783 9,376,186 9,423,606 9,526,228 9,725,661
Selected
Average
Balances:
Total assets $1,238,010 $1,210,454 $1,194,717 $1,194,703 $1,185,839
Earning assets 1,166,498 1,137,101 1,121,461 1,123,811 1,117,852
Loans 973,017 943,391 930,049 915,214 905,931
Deposits 1,010,201 984,114 967,426 977,666 970,515
Stockholders'
equity 96,160 98,757 99,557 98,567 97,499
Selected
Period End
Balances:
Total assets $1,257,869 $1,222,368 $1,205,041 $1,198,671 $1,195,680
Earning assets 1,186,292 1,144,718 1,129,869 1,116,776 1,127,873
Loans 982,571 963,500 934,927 921,349 904,082
Allowance for
loan losses 20,240 14,303 13,875 12,906 11,497
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 1,029,844 996,595 972,104 980,149 979,792
Stockholders'
equity 92,981 95,677 98,866 97,676 96,833
Tier 1
regulatory
capital 97,715 100,492 100,010 100,885 101,647
Performance
Ratios:
Return on
average assets -0.92% 0.49% 0.44% 0.54% 0.96%
Return on
average
stockholders'
equity -11.83% 5.96% 5.24% 6.61% 11.63%
Net interest
margin 3.20% 3.20% 3.41% 3.61% 3.89%
Efficiency
ratio
(excluding the
following
items): 68.84% 67.58% 70.87% 63.46% 60.54%
Securities
gains
(losses)
included in
other
income $ 2 $ 17 $ 183 $ 129 $ 49
Other gains
(losses)
included in
other
income (434) (42) (66) 60 28
Selected Asset
Quality
Factors:
Nonaccrual
loans $ 43,471 $ 40,464 $ 26,090 $ 11,405 $ 5,185
Loans 90 days
or more past
due and still
accruing 4 331 13 37 34
Other impaired
loans
(troubled-debt
restructurings) 9,808 9,808 -- -- --
Other real
estate and
repossessions 11,972 8,792 7,237 6,360 3,676
Asset Quality
Ratios:
Net charge-offs
to average
loans
(annualized
YTD) 0.31% 0.18% 0.10% 0.06% 0.02%
Nonperforming
loans to
total loans 5.42% 5.25% 2.79% 1.24% 0.58%
Nonperforming
assets to
total assets 5.19% 4.86% 2.77% 1.49% 0.74%
Allowance for
loan losses to
total loans 2.06% 1.48% 1.48% 1.40% 1.27%
Allowance for
loan losses to
nonperforming
loans 37.99% 28.26% 53.15% 112.79% 220.30%
Other Selected
Ratios and
Nonfinancial
Data:
Average loans
to average
earning assets 83.41% 82.96% 82.93% 81.44% 81.04%
Average loans
to average
deposits 96.32% 95.86% 96.14% 93.61% 93.35%
Average
stockholders'
equity to
average assets 7.77% 8.16% 8.33% 8.25% 8.22%
Full-time
equivalent
employees 314 320 321 327 328
Bank branch
offices 20 20 20 20 20
Bank loan
production
offices 3 3 3 3 3
Bank ATMs 26 26 25 25 25
**Adjusted for 2% Stock Dividend Payable July 15, 2008
PAB BANKSHARES, INC.
SELECTED Period Ended
YEAR-TO-DATE ------------------------------------------------------
FINANCIAL DATA 09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 54,170 $ 36,491 $ 19,030 $ 84,676 $ 63,663
Interest
expense 26,742 18,283 9,685 42,210 31,253
---------------------------------------------------------------------
Net interest
income 27,428 18,208 9,345 42,466 32,410
---------------------------------------------------------------------
Provision for
loan losses 9,550 2,250 1,200 2,400 600
Other income 4,296 3,215 1,643 5,991 4,309
Other expense 22,531 15,020 7,829 29,590 22,150
---------------------------------------------------------------------
Income before
income tax
expense (357) 4,153 1,959 16,467 13,969
Income tax
expense (257) 1,392 662 5,681 4,823
---------------------------------------------------------------------
Net income $ (100)$ 2,761 $ 1,297 $ 10,786 $ 9,146
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 27,962 $ 18,565 $ 9,522 $ 43,120 $ 32,889
Per Share Ratios:
Net income
- basic ** $ (0.01)$ 0.30 $ 0.14 $ 1.12 $ 0.95
Net income
- diluted ** (0.01) 0.29 0.14 1.11 0.93
Dividends
declared for
the period 0.240 0.240 0.145 0.580 0.435
Dividend
payout ratio -2213.13% 79.57% 102.39% 50.43% 44.85%
Common
Share Data:
Weighted
average
outstanding ** 9,339,059 9,346,466 9,364,691 9,602,535 9,658,307
Diluted
weighted
average
outstanding ** 9,372,897 9,400,712 9,423,606 9,744,063 9,814,914
Selected
Average
Balances:
Total assets $1,214,480 $1,202,585 $1,194,717 $1,165,307 $1,155,401
Earning assets 1,141,777 1,129,281 1,121,461 1,096,918 1,087,855
Loans 948,908 936,720 930,049 883,334 872,591
Deposits 987,331 975,770 967,426 948,613 938,822
Stockholders'
equity 98,151 99,157 99,557 98,055 97,883
Performance
Ratios:
Return on
average assets -0.01% 0.46% 0.44% 0.93% 1.06%
Return on
average
stockholders'
equity -0.14% 5.60% 5.24% 11.00% 12.49%
Net interest
margin 3.27% 3.31% 3.41% 3.93% 4.04%
Efficiency
ratio
(excluding the
following
items): 69.12% 69.26% 70.87% 60.74% 59.88%
Securities
gains
(losses)
included in
other
income $ 202 $ 200 $ 183 $ 313 $ 184
Other gains
(losses)
included in
other
income (542) (108) (66) 81 21
Other Selected
Ratios:
Average loans
to average
earning assets 83.11% 82.95% 82.93% 80.53% 80.21%
Average loans
to average
deposits 96.11% 96.00% 96.14% 93.12% 92.95%
Average
stockholders'
equity to
average assets 8.08% 8.25% 8.33% 8.41% 8.47%
**Adjusted for 2% Stock Dividend Payable July 15, 2008
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of South North
September 30, Georgia Georgia Florida
2008 Market Market Market Treasury Total
------------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 38,236 $ 47,174 $ 5,956 $ 35 $ 91,401
Agricultural
(including
loans secured
by farmland) 36,757 6,084 6,386 -- 49,227
Real estate
- construction 73,635 199,405 59,466 395 332,901
Real estate
- commercial 93,452 157,984 26,043 4,302 281,781
Real estate
- residential 137,157 43,798 9,654 4,830 195,439
Installment
loans to
individuals
and others 13,376 5,793 159 12,747 32,075
------------------------------------------------------
392,613 460,238 107,664 22,309 982,824
Deferred loan
fees and
unearned
interest, net 201 (164) (277) (13) (253)
------------------------------------------------------
Total loans 392,814 460,074 107,387 22,296 982,571
Allowance for
loan losses (2,783) (13,393) (2,501) (1,563) (20,240)
------------------------------------------------------
Net loans $ 390,031 $ 446,681 $ 104,886 $ 20,733 $ 962,331
======================================================
Percent
of total 40.5% 46.4% 10.9% 2.2% 100.0%
======================================================
Deposits
Noninterest
-bearing
demand $ 72,186 $ 15,776 $ 6,149 $ 7,306 $ 101,417
Interest
-bearing
demand and
savings 206,071 31,728 24,402 522 262,723
Time less than
$100,000 184,822 46,825 91,138 592 323,377
Time greater
than or equal
to $100,000 110,334 30,297 41,654 206 182,491
Brokered 18,337 -- -- 141,499 159,836
------------------------------------------------------
Total deposits $ 591,750 $ 124,626 $ 163,343 $ 150,125 $1,029,844
======================================================
Percent of
total 57.4% 12.1% 15.9% 14.6% 100.0%
======================================================
PAB BANKSHARES, INC.
LOAN PORTFOLIO
SUMMARY
The amount of loans outstanding at the indicated dates is presented
in the following table according to type of loan:
Period Ended
------------------------------------------------------
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
------------------------------------------------------
(Dollars In Thousands)
Commercial
and financial $ 91,401 $ 82,087 $ 83,343 $ 78,730 $ 78,556
Agricultural
(including
loans secured
by farmland) 49,227 46,891 42,573 41,861 42,608
Real estate
- construction 332,901 344,393 363,392 352,732 339,019
Real estate
- commercial 281,781 275,962 241,165 248,272 257,841
Real estate
- residential 195,439 181,169 179,091 174,157 164,967
Installment
loans to
individuals
and other
loans 32,075 33,237 25,704 26,011 21,691
---------- ---------- ---------- ----------- ---------
982,824 963,739 935,268 921,763 904,682
Deferred loan
fees and
unearned
interest, net (253) (239) (341) (414) (600)
---------- ---------- ---------- ---------- ----------
Total loans 982,571 963,500 934,927 921,349 904,082
Allowance for
loan losses (20,240) (14,303) (13,875) (12,906) (11,497)
---------- ---------- ---------- ---------- ----------
Net loans $ 962,331 $ 949,197 $ 921,052 $ 908,443 $ 892,585
========== ========== ========== ========== ==========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
------------------------------------------------------
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
------------------------------------------------------
Commercial and
financial 9.30% 8.52% 8.91% 8.55% 8.69%
Agricultural
(including
loans secured
by farmland) 5.01% 4.87% 4.55% 4.54% 4.71%
Real estate
- construction 33.88% 35.74% 38.87% 38.28% 37.50%
Real estate
- commercial 28.68% 28.64% 25.80% 26.95% 28.52%
Real estate
- residential 19.89% 18.80% 19.16% 18.90% 18.25%
Installment
loans to
individuals
and other
loans 3.27% 3.45% 2.75% 2.82% 2.40%
---------- ---------- ---------- ---------- ----------
100.03% 100.02% 100.04% 100.04% 100.07%
Deferred loan
fees and
unearned
interest, net -0.03% -0.02% -0.04% -0.04% -0.07%
---------- ---------- ---------- ---------- ----------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -2.06% -1.48% -1.48% -1.40% -1.27%
---------- ---------- ---------- ---------- ----------
Net loans 97.94% 98.52% 98.52% 98.60% 98.73%
========== ========== ========== ========== ==========
PAB BANKSHARES, INC.
DEPOSIT PORTFOLIO
SUMMARY
The amounts on deposit at the indicated dates are presented in the
following table according to type of deposit account:
Period Ended
------------------------------------------------------
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
------------------------------------------------------
(Dollars In Thousands)
Noninterest
-bearing
demand $ 101,417 $ 102,909 $ 97,029 $ 89,423 $ 91,053
Interest
-bearing
demand and
savings 262,723 336,359 331,184 354,743 362,079
Time less than
$100,000 323,377 292,981 298,799 312,722 315,532
Time greater
than or equal
to $100,000 182,491 175,914 179,316 187,662 172,529
Brokered 159,836 88,432 65,776 35,599 38,599
---------- ---------- ---------- ---------- ----------
Total deposits $1,029,844 $ 996,595 $ 972,104 $ 980,149 $ 979,792
========== ========== ========== ========== ==========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
------------------------------------------------------
09/30/08 06/30/08 03/31/08 12/31/07 09/30/07
------------------------------------------------------
Noninterest
-bearing
demand 9.85% 10.33% 9.98% 9.12% 9.29%
Interest
-bearing
demand and
savings 25.51% 33.75% 34.07% 36.19% 36.96%
Time less than
$100,000 31.40% 29.40% 30.74% 31.91% 32.20%
Time greater
than or equal
to $100,000 17.72% 17.65% 18.44% 19.15% 17.61%
Brokered 15.52% 8.87% 6.77% 3.63% 3.94%
---------- ---------- ---------- ---------- ----------
Total deposits 100.00% 100.00% 100.00% 100.00% 100.00%
========== ========== ========== ========== ==========
PAB BANKSHARES, INC.
YIELD ANALYSIS
The following tables detail the average balances of interest-earning
assets and interest-bearing liabilities, the amount of interest
earned and paid, and the average yields and rates for the three
months and nine months ended September 30, 2008 and 2007. Federally
tax-exempt income is presented on a taxable-equivalent basis assuming
a 35% Federal tax rate. Loan average balances include loans on
nonaccrual status.
For the Three
Ended September 30, 2008 2007
---------------------------------------------------------------------
Interest Avg Interest Avg
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest
-earning
assets:
Loans $ 973,017 $ 15,391 6.29% $ 905,931 $ 19,243 8.43%
Investment
securities:
Taxable 145,731 1,891 5.16% 159,089 2,052 5.12%
Nontaxable 33,055 506 6.09% 31,503 476 5.99%
Other
short-term
investments 14,696 69 1.88% 21,329 261 4.86%
--------------------- ---------------------
Total interest
-earning
assets $1,166,499 $ 17,857 6.09% $1,117,852 $ 22,032 7.82%
--------------------- ---------------------
Interest
-bearing
liabilities:
Demand
deposits $ 267,595 $ 1,149 1.71% $ 317,651 $ 2,983 3.73%
Savings
deposits 36,175 46 0.50% 37,494 146 1.55%
Time deposits 604,761 6,068 3.99% 516,895 6,627 5.09%
FHLB advances 100,042 986 3.92% 87,333 1,005 4.57%
Notes payable 10,310 117 4.50% 10,310 184 7.09%
Other
short-term
borrowings 15,540 94 2.40% 12,826 139 4.31%
--------------------- ---------------------
Total interest
-bearing
liabilities $1,034,423 $ 8,460 3.25% $ 982,509 $ 11,084 4.48%
--------------------- ---------------------
Interest rate
spread 2.84% 3.34%
==== ====
Net interest income $ 9,397 $ 10,948
========== ==========
Net interest margin 3.20% 3.89%
==== ====
For the Nine Months
Ended September 30, 2008 2007
---------------------------------------------------------------------
Interest Avg Interest Avg
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest
-earning
assets:
Loans $ 948,908 $ 47,188 6.64% $ 872,591 $ 55,640 8.53%
Investment
securities:
Taxable 146,957 5,785 5.26% 159,758 6,150 5.15%
Nontaxable 33,359 1,526 6.11% 30,410 1,371 6.03%
Other short
-term
investments 12,554 205 2.19% 25,096 981 5.23%
--------------------- ---------------------
Total interest
-earning
assets $1,141,778 $ 54,704 6.40% $1,087,855 $ 64,142 7.88%
--------------------- ---------------------
Interest
-bearing
liabilities:
Demand
deposits $ 288,706 $ 4,414 2.04% $ 308,984 $ 8,393 3.63%
Savings
deposits 35,896 174 0.65% 37,689 444 1.57%
Time deposits 565,130 18,553 4.39% 491,710 18,399 5.00%
FHLB advances 96,681 2,845 3.93% 89,309 3,094 4.63%
Notes payable 10,310 398 5.15% 10,310 546 7.08%
Other short
-term
borrowings 16,052 358 2.98% 11,727 377 4.30%
--------------------- ---------------------
Total interest
-bearing
liabilities $1,012,775 $ 26,742 3.53% $ 949,729 $ 31,253 4.40%
--------------------- ---------------------
Interest rate
spread 2.87% 3.48%
==== ====
Net interest
income $ 27,962 $ 32,889
========== ==========
Net interest
margin 3.27% 4.04%
==== ====