HUNTINGTON, W.Va., Aug. 1 OH-Premier-Finan.-ern
HUNTINGTON, W.Va., Aug. 1 /PRNewswire-FirstCall/ -- PREMIER FINANCIAL
BANCORP, INC. (PREMIER), (Nasdaq: PFBI), a $734 million community bank holding
company with seven bank subsidiaries, announced its financial results for the
second quarter of 2008. Premier realized income of $1,930,000 during the
quarter ending June 30, 2008, a 7.8% increase over the $1,790,000 of net
income reported for the second quarter of 2007. On a per share basis, Premier
earned $0.32 during the second quarter of 2008, compared to $0.34 per share
earned during the second quarter of 2007. The increase in net income in 2008
was primarily the result of a 16.2% increase in net interest income, a 32.0%
increase in non-interest income, partially offset by a 21.3% increase in
non-interest expense and a $255,000 increase in the provision for loan losses.
These increases in 2008 reflect the acquisition of two banks during the second
quarter. Their operations are included in the operating results of Premier
only after the date of acquisition, April 30, 2008. For the first half of
2008 Premier has realized net income of $3,704,000 (66 cents per share), a
3.6% increase over the $3,576,000 (68 cents per share) earned during the first
half of 2007.
President and CEO Robert W. Walker commented, "We are pleased to have
completed the acquisitions of Traders and Citizens First banks. In a time
when the nation's largest banks are shrinking, Premier's franchise is growing.
The additional earnings (and potential for greater earnings) of Traders and
Citizens First are already contributing to the profitability of Premier. As a
result, we increased our quarterly dividend 10% to $0.11 per share beginning
with the dividend paid on June 30, 2008. We look forward to converting the
banks to our data processing provider and assimilating their operations into
the Premier way of community banking."
Net interest income for the quarter ending June 30, 2008 totaled $6.449
million, compared to $5.551 million of net interest income earned in the
second quarter of 2007 and $5.594 million earned in the first quarter of 2008.
When compared to the second quarter of 2007, net interest income increased
19.3% as a result of the addition of Traders and Citizens First banks
partially offset by a 3.1% decrease in net interest income of Premier's other
five banks. Total interest income in the second quarter of 2008 increased by
$721,000 or 8.3% when compared to the second quarter of 2007, as a $542,000 or
8.0% increase in interest income on loans and a $502,000 or 35.5% increase in
interest income on investments was partially offset by a decrease in interest
income on federal funds sold, down $323,000 or 59.3%. Total interest expense
in the second quarter of 2008 decreased by $177,000 or 5.6% when compared to
the second quarter of 2007, as interest on deposits decreased by $37,000 or
1.3%, interest on repurchase agreements decreased by $33,000 or 38.4%, and
interest on other borrowings decreased by $104,000 or 49.3%. The 15.3%
increase in net interest income, when compared to the first quarter of 2008,
is primarily due to the addition of Traders and Citizens First banks. Total
interest income in the second quarter of 2008 increased by $1,006,000 or 11.9%
when compared to the first quarter of 2008, as a $743,000 or 11.3% increase in
interest income on loans and a $349,000 or 22.3% increase in interest income
on investments was partially offset by a decrease in interest income on
federal funds sold, down $90,000 or 30.4%. These increases in interest income
were partially offset by a $151,000 or 5.3% increase in total interest
expense, primarily due to an increase in interest expense on deposit accounts.
In addition to the increase in net interest income from the acquisitions
of Traders and Citizens First banks, there was an increase in net overhead
costs. Net overhead costs for the quarter ending June 30, 2008 totaled $3.545
million, which included $150,000 of non-recurring income. This compares to
$3.022 million in the second quarter of 2007, and $3.056 million in the first
quarter of 2008. Excluding the non-recurring income and $635,000 of net
overhead costs generated directly by the Traders and Citizens First banks,
second quarter 2008 net overhead was 1.3% higher than the second quarter of
2007, largely due to increased professional fees and outside data processing
costs. These increases in net overhead more than offset decreases in taxes
not on income, OREO expenses and other operating expenses, plus an increase in
electronic banking revenue. When compared to the first quarter of 2008,
second quarter 2008 net overhead (excluding the non-recurring income and the
overhead costs of Traders and Citizens First banks) was relatively unchanged.
Increases in deposit service charges, overdraft fee income and electronic
banking income plus the benefit of lower salary and benefit costs, lower data
processing costs and lower taxes not on income were offset by higher
professional fees, supplies expense, OREO expenses and other operating
expenses as well as reduced revenue from secondary market mortgage sales and
other income.
During the quarter ending June 30, 2008, Premier recorded $91,000 of
provisions to the allowance for loan losses compared to $164,000 of negative
provisions made during the same period of 2007 and $135,000 of negative
provisions in the first quarter of 2008. Premier recorded a positive
provision for loan losses in the second quarter of 2008 largely due to loan
growth with an offset resulting from loan recoveries. Negative provisions to
the allowance for loan losses were recorded in the second quarter of 2007 and
first quarter of 2008 primarily as a result of loan loss recoveries and
payments on loans previously identified as having significant credit risk at
Premier's subsidiary, Farmers Deposit Bank. Future provisions to the
allowance for loan losses, positive or negative, will depend on any future
improvement or deterioration in estimated credit risk in the loan portfolio as
well as whether additional payments are received on loans previously
identified as having significant credit risk. As a percent of total loans
outstanding, the allowance for loan losses at June 30, 2008 increased slightly
to 1.94% compared to 1.91% at March 31, 2008 and 1.87% at year-end 2007.
Total assets as of June 30, 2008 of $734 million were up $185 million or
33.7% from the $549 million of total assets at year-end 2007. The significant
increase in total assets is largely due to the $180 million of assets acquired
via the purchase of Traders and Citizens First banks. The remaining a $5.0
million increase is largely due to a $13.3 million increase in total deposits
and repurchase agreements since year-end. These funds have been used to
increase loans, up $7.6 million or 2.2% since year-end and securities
available-for-sale, up $6.6 million or 5.3% since year-end. Partially
offsetting the increase in loans and investments was a $7.0 million decrease
in federal funds sold as funds were used to satisfy the cash portion of the
merger consideration of Citizens First. Shareholders' equity of $84.1 million
equaled 11.5% of total assets at June 30, 2008, which compares to
shareholders' equity of $67.4 million or 12.3% of total assets at December 31,
2007. The increase in shareholders' equity was due to the $3.7 million of net
income in the first six months of 2008 plus the capital issued to purchase
Traders and Citizens First. These increases were partially offset by dividend
payments to shareholders and a $1,370,000 increase in net unrealized loss in
the investment portfolio since year-end. Premier invests in high quality debt
securities of the U.S. Government and its agencies and fully expects to
receive the face value of these securities upon their maturity.
Certain Statements contained in this news release, including without
limitation statements including the word "believes," "anticipates," "intends,"
"expects" or words of similar import, constitute "forward-looking statements"
within the meaning of section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of Premier to be materially different
from any future results, performance or achievements of Premier expressed or
implied by such forward-looking statements. Such factors include, among
others, general economic and business conditions, changes in business strategy
or development plans and other factors referenced in this press release. Given
these uncertainties, prospective investors are cautioned not to place undue
reliance on such forward-looking statements. Premier disclaims any obligation
to update any such factors or to publicly announce the results of any
revisions to any of the forward-looking statements contained herein to reflect
future events or developments.
Following is a summary of the financial highlights for Premier as of and
for the period ending June 30, 2008.
PREMIER FINANCIAL BANCORP, INC.
Financial Highlights
Dollars in Thousands (except per share data)
For the For the
Quarter EndedSix Months Ended
June 30June 30 June 30 June 30
2008 2007 2008 2007
Interest Income 9,433 8,71217,86017,324
Interest Expense2,984 3,161 5,817 6,262
Net Interest Income 6,449 5,55112,04311,062
Provision for Loan Losses 91 (164) (44) (128)
Net Interest Income
after Provision6,358 5,71512,08711,190
Non-Interest Income 1,459 1,105 2,525 2,351
Securities Transactions93 -93 -
Non-Interest Expenses 5,004 4,127 9,126 8,275
Income Before Taxes 2,906 2,693 5,579 5,266
Income Taxes 976903 1,875 1,690
NET INCOME 1,930 1,790 3,704 3,576
EARNINGS PER SHARE 0.32 0.34 0.66 0.68
Dividends per share 0.11 0.10 0.21 0.20
Charge-offs 186 64 265 324
Recoveries137292 261 431
Net charge-offs (recoveries) 49 (228)4 (107)
PREMIER FINANCIAL BANCORP, INC.
Financial Highlights (continued)
Dollars in Thousands (except per share data)
Balances as of
June 30 December 31
2008 2007
ASSETS
Cash and Due From Banks 24,56822,365
Federal Funds Sold 35,84332,035
Securities Available for Sale 175,603 124,242
Loans Held for Sale 2,969 1,891
Loans (net)443,077 340,073
Other Real Estate Owned688 174
Other Assets24,35112,659
Goodwill and Other Intangibles 30,20715,816
TOTAL ASSETS 734,337 549,255
LIABILITIES & EQUITY
Deposits 600,069 449,033
Fed Funds/Repurchase Agreements 24,00612,856
FHLB Advances4,752 4,843
Other Borrowings16,337 8,412
Other Liabilities5,082 6,709
TOTAL LIABILITIES 650,246 481,866
Stockholders' Equity84,09167,389
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 734,337 549,255
TOTAL BOOK VALUE PER SHARE 13.15 12.87
Non-Accrual Loans5,109 3,157
Loans 90 Days Past Due and Still Accruing 525 987
SOURCE Premier Financial Bancorp, Inc.
