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 offices in Kentucky, reported unaudited results for the second quarter of 2014.
The Company reported a net loss attributable to common shareholders of $672,000, or ($0.06) per diluted share, for the second quarter of 2014 compared with a net loss of $1.7 million, or ($0.14) per diluted share, for the second quarter of 2013. Net loss attributable to common shareholders for the six months ended June 30, 2014, was $1.6 million, or ($0.14) per diluted common share, compared with net loss attributable to common shareholders of $2.2 million, or ($0.19) per diluted share, for the six months ended June 30, 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 develop new quality financial relationships. Second Quarter 2014 Financial Performance Highlights Net Interest Income - Net interest income increased to $7.6 million for the second quarter of 2014 compared with $7.3 million in the first quarter of 2014 and decreased from $8.4 million in the second quarter of 2013 as average loans declined to $677.6 million for the second quarter of 2014 compared with $698.2 million in the first quarter of 2014 and $806.9 million in the second quarter of 2013. Net interest margin increased to 3.13% in the second quarter of 2014, compared with 2.96% in the first quarter of 2014, and declined from 3.24% in the second quarter of 2013. While earning assets have decreased and interest expense has remained relatively flat, net interest margin was positively impacted in the second quarter by the collection of previously charged-off accrued uncollected interest and late charges of approximately $240,000 along with the full unpaid principal balance on three nonaccrual loans. Provision for Loan Losses - No provision for loan losses expense was recorded for the second or first quarters of 2014, or in the second quarter of 2013 due to 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 3.95% at June 30, 2014, compared with 4.10% at March 31, 2014, and 4.56% at June 30, 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 $107.3 million, or 10.20% of total assets at June 30, 2014, compared with $123.3 million, or 11.59% of total assets, at March 31, 2014, and $159.3 million, or 14.86% of total assets, at June 30, 2013.
Non-performing loans decreased to $44.4 million, or 6.90% of total loans, at June 30, 2014, compared with $77.3 million, or 11.33% of total loans, at March 31, 2014. The decline was primarily driven by $18.5 million of nonaccrual loans migrating to OREO, $12.2 million in principal payments received on nonaccrual loans, and $2.9 million of charge-offs.
Non-performing loans and OREO remain at elevated levels and continue to negatively impact financial performance.
June 30, 2014March 31, 2014December 31, 2013September 30, 2013June 30, 2013 (in thousands)
Keywords for this news article include: Porter Bancorp Inc, Finance and Investment, Investment and Finance.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC