RIVERSIDE, Calif. (Business Wire) -- Premier Service Bank (OTCBB:PSBK) today announced its financial results for the third quarter of 2008.
For the quarter ended September 30, 2008, the bank reported a net loss of $33 thousand, or ($0.03) per diluted share, compared to net earnings of $158 thousand, or $0.12 per diluted share for the third quarter of 2007. Net income for the nine months ended September 30, 2008, was $127 thousand, or $0.10 per diluted share, compared to $388 thousand, or $0.30 per diluted share, for the same period in 2007. The decline in earnings between the respective quarters and nine month periods is primarily attributed to the increased provisions to the bank's allowance for loan losses, which for the nine months ended September 30, 2008 totaled $873 thousand, compared to $87 thousand for the same period in 2007.
At September 30, 2008, 3.24% of the Bank's loans were nonperforming, compared to no nonperforming loans at September 30, 2007. The Bank had foreclosed real estate of $672 thousand and other foreclosed assets of $184 thousand at September 30, 2008, and none at June 30, 2007. At September 30, 2008, non-accrual loans represented 3.00% of total loans, compared to no non-accrual loans at September 30, 2007. The allowance for loan losses totaled $1.73 million at September 30, 2008, or 1.39% of total loans as of that date, compared to $1.15 million at September 30, 2007, or 1.13% of total loans as of that date.
At September 30, 2008, the Bank had total assets of $155.2 million, representing an increase of $19.5 million, or 14.3% growth over total assets of $135.7 million at September 30, 2007. Total deposits at September 30, 2008 were $115.1 million, representing 2.5% growth over total deposits of $112.3 million at September 30, 2007. Non-interest bearing demand deposits totaled $41.8 million at September 30, 2008, representing 36.3% of total deposits at that date, compared to $46.4 million of non-interest bearing demand deposits at September 30, 2007, which represented 41.3% of total deposits at that date.
The Bank's gross loan portfolio grew to $124.5 million at September 30, 2008, representing a 22.6% increase over gross loans of $101.5 million at September 30, 2007. Unfunded credit commitments stood at $18.4 million at September 30, 2008, representing a 44.1% decrease compared to unfunded commitments of $33.4 million at September 30, 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 quarter ended September 30, 2008 was 4.98%, a decrease of 0.39% compared to the third quarter of 2007.
The Bank remained well capitalized at September 30, 2008 and continued to have no sub-prime residential loans in its portfolio. Total shareholders' equity at September 30, 2008 was $13.3 million, representing an increase of $0.57 million, or 4.4% over total shareholders' equity of $12.8 million at September 30, 2007.
President and Chief Executive Officer Kerry Pendergast stated, "The third quarter continued to present significant challenges for the region and for the financial services sector as well. Notwithstanding these challenges, the bank is well positioned to meet the continuing needs of our core constituency, which is small to mid-size businesses, with a very personalized and thoughtful approach to banking. We are committed to developing and nurturing long-term relationships with our clients, which is essential to meeting the needs and demands that are being placed on today's business owners," 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.
Financial Data - Premier Service Bank
(Unaudited)
Quarter Ended
-------------------------------------------------
(In Thousands) Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
2008 2008 2008 2007 2007
------------------------------ --------- --------- --------- ---------
Interest income (not
taxable equivalent) $ 2,451 $ 2,342 $ 2,430 $ 2,389 $ 2,324
Interest expense 667 632 671 676 649
--------- --------- --------- --------- ---------
Net interest income 1,784 1,710 1,759 1,713 1,675
Provision for loan
losses 470 347 56 108 77
--------- --------- --------- --------- ---------
Net interest income
after provision for
loan losses 1,314 1,363 1,703 1,605 1,598
Non-interest income 206 182 178 180 190
Non-interest expense 1,605 1,557 1,651 1,516 1,531
--------- --------- --------- --------- ---------
Income before income
taxes (85) (12) 230 269 257
(Benefit)/Provision
for income taxes (52) (21) 79 91 99
--------- --------- --------- --------- ---------
Net income $ (33) $ 9 $ 151 $ 178 $ 158
--------- --------- --------- --------- ---------
Quarter Ended
-------------------------------------------------
(In Thousands) Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
2008 2008 2008 2007 2007
------------------------------ --------- --------- --------- ---------
Per share:
Net income - basic $ (0.03) $ 0.01 $ 0.12 $ 0.14 $ 0.13
Weighted average
shares used in
basic 1,259 1,257 1,256 1,255 1,255
Net income - diluted $ (0.03) $ 0.01 $ 0.12 $ 0.14 $ 0.12
Weighted average
shares used in
diluted 1,259 1,270 1,270 1,279 1,293
Book value at period
end $ 10.58 $ 10.53 $ 10.66 $ 10.46 $ 10.18
Ending shares 1,261 1,257 1,257 1,255 1,255
Balance Sheet - At
Period-End
Cash and due from
banks $ 4,847 $ 5,572 $ 5,908 $ 3,571 $ 6,546
Investments and Fed
fund sold 20,655 22,812 22,630 21,813 23,836
Gross Loans 124,457 123,980 111,933 110,045 101,513
Deferred fees (353) (363) (375) (369) (339)
Allowance for
loan losses (1,725) (1,634) (1,287) (1,259) (1,152)
Net Loans 122,379 121,983 110,271 108,417 100,022
Other assets 7,281 6,186 5,854 5,531 5,326
--------- --------- --------- --------- ---------
Total Assets $155,162 $156,553 $144,664 $139,332 $135,730
--------- --------- --------- --------- ---------
Non-interest-bearing
deposits $ 41,834 $ 43,989 $ 43,461 $ 38,356 $ 46,373
Interest-bearing
deposits 73,269 72,625 66,124 71,059 65,927
Other liabilities 26,722 26,703 21,681 16,785 10,660
Shareholders' equity 13,337 13,236 13,398 13,132 12,770
--------- --------- --------- --------- ---------
Total
Liabilities
and
Shareholders' $155,162 $156,553 $144,664 $139,332 $135,730
--------- --------- --------- --------- ---------
Asset Quality &
Capital - At
Period-End
Non-accrual loans $ 3,738 $ 4,707 $ 1,055 $ 700 $ -
Loans past due 90
days or more $ 290 $ 302 $ 160 $ - $ -
Other real estate
owned - - - - -
--------- --------- --------- --------- ---------
Total non-performing
assets $ 4,028 $ 5,009 $ 1,215 $ 700 $ -
--------- --------- --------- --------- ---------
Allowance for losses
to loans, gross 1.39% 1.32% 1.15% 1.14% 1.13%
Non-accrual loans to
total loans, gross 3.00% 3.80% 0.94% 0.64% N/A
Non-performing loans
to total loans,
gross 3.24% 4.04% 1.09% 0.64% N/A
Non-performing asset
to total assets 2.60% 3.20% 0.84% 0.50% N/A
Allowance for losses
to non-performing
loans 42.83% 32.62% 105.93% 179.86% N/A
Total capital to
risk-adjusted
assets 11.16% 11.19% 12.10% 12.08% 12.61%
Tier one capital to
risk-adjusted
assets 9.91% 9.94% 10.97% 10.96% 11.50%
Equity to average
assets (leverage
ratio) 8.66% 9.07% 9.39% 9.46% 9.52%
Premier Service Bank
Kerry L. Pendergast, President and CEO, or
Jessica Lee, Executive Vice President and CFO
951-274-2400
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