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