News Column

Porter Bancorp, Inc. Reports First Quarter 2014 Results

May 17, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking centers in Kentucky, reported unaudited results for the first quarter of 2014.

The Company reported that the net loss attributable to common shareholders decreased to $976,000, or ($0.08) per diluted share, for the first quarter of 2014 compared to a net loss of $1,028,000, or ($0.09) per diluted share for the fourth quarter of 2013 and increased compared to the net loss of $524,000, or ($0.04) per diluted share, for the first quarter of 2013.

Our primary initiatives for 2014 are to continue reducing non-performing assets, restore capital, and return to sustainable profitability while continuing to serve our customers and developing new quality financial relationships. First Quarter 2014 Financial Performance Highlights Net Interest Income - Net interest income declined to $7.3 million for the first quarter of 2014 compared with $7.6 million in the fourth quarter of 2013 and $8.3 million in the first quarter of 2013 as average loans declined to $698.2 million for the first quarter of 2014 compared with $719.2 million in the fourth quarter of 2013 and $872.5 million in the first quarter of 2013. Net interest margin remained consistent at 2.96% in the first quarter of 2014, compared with 2.96% in the fourth quarter of 2013, and declined from 3.07% in the first quarter of 2013. Provision for Loan Losses - No provision for loan losses expense was recorded for the first quarter of 2014 or the fourth quarter of 2013, compared to $450,000 in the first quarter of 2013. The reduction in provision for loan losses benefited from the downsizing of the loan portfolio, declining historical loss rates, and a reduction in loans migrating downward in risk grade classification. The allowance for loan losses for loans evaluated collectively for impairment was 4.10% at March 31, 2014, compared with 4.41% at December 31, 2013, and 4.88% at March 31, 2013. Non-performing Assets - Non-performing assets, which include loans past due 90 days and still accruing, loans on nonaccrual, and other real estate owned (OREO), decreased to $123.3 million, or 11.59% of total assets at March 31, 2014, compared with $132.9 million, or 12.35% of total assets, at December 31, 2013.

Non-performing loans decreased to $77.3 million, or 11.33% of total loans, at March 31, 2014, compared with $102.0 million, or 14.38% of total loans, at December 31, 2013. The decline was primarily driven by $16.9 million of nonaccrual loans migrating to OREO, $10.2 million in principal payments received on nonaccrual loans, and $2.7 million of net charge-offs.

Non-performing loans and OREO remain at elevated levels and continue to negatively impact financial performance.

March 31, 2014December 31, 2013

September 30, 2013

June 30, 2013

March 31, 2013 (in thousands)

Keywords for this news article include: Porter Bancorp Inc, Finance and Investment, Investment and Finance.

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Source: Investment Weekly News


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