þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended June 30,
2008
|
|
or
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ___________ to
___________
|
|
Commission
file number 0-20908
|
|
PREMIER FINANCIAL
BANCORP, INC.
|
|
(Exact
name of registrant as specified in its
charter)
|
Kentucky
|
61-1206757
|
|
(State
or other jurisdiction of incorporation organization)
|
(I.R.S.
Employer Identification No.)
|
|
2883
Fifth Avenue
Huntington,
West Virginia
|
25702
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant’s
telephone number (304)
525-1600
|
Large
accelerated filer o.
|
Accelerated
filer o.
|
Non-accelerated
filer o
(Do not check if smaller reporting
company)
|
Smaller
reporting company þ
|
3
|
|
23
|
|
35
|
|
35
|
|
37
|
|
37
|
|
37
|
|
37
|
|
37
|
|
37
|
|
37
|
|
38
|
|
39
|
4
|
|
5
|
|
6
|
|
7
|
|
9
|
(UNAUDITED)
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 24,568 | $ | 22,365 | ||||
Federal
funds sold
|
35,843 | 32,035 | ||||||
Securities
available for sale
|
175,603 | 124,242 | ||||||
Loans
held for sale
|
2,969 | 1,891 | ||||||
Loans
|
451,826 | 346,570 | ||||||
Allowance for loan
losses
|
(8,749 | ) | (6,497 | ) | ||||
Net loans
|
443,077 | 340,073 | ||||||
Federal
Home Loan Bank and Federal Reserve Bank stock
|
3,865 | 3,314 | ||||||
Premises
and equipment, net
|
11,389 | 6,200 | ||||||
Real
estate and other property acquired through foreclosure
|
688 | 174 | ||||||
Interest
receivable
|
3,751 | 2,768 | ||||||
Goodwill
and other intangible assets
|
30,207 | 15,816 | ||||||
Other
assets
|
2,377 | 377 | ||||||
Total assets
|
$ | 734,337 | $ | 549,255 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest
bearing
|
$ | 106,047 | $ | 75,271 | ||||
Time deposits, $100,000 and
over
|
71,265 | 55,345 | ||||||
Other interest
bearing
|
422,757 | 318,417 | ||||||
Total deposits
|
600,069 | 449,033 | ||||||
Federal
funds purchased
|
201 | 392 | ||||||
Securities
sold under agreements to repurchase
|
23,805 | 12,477 | ||||||
Federal
Home Loan Bank advances
|
4,752 | 4,843 | ||||||
Other
borrowed funds
|
16,337 | 8,412 | ||||||
Interest
payable
|
1,334 | 1,064 | ||||||
Other
liabilities
|
3,748 | 5,645 | ||||||
Total liabilities
|
650,246 | 481,866 | ||||||
Stockholders'
equity
|
||||||||
Preferred stock, no par value;
1,000,000 shares authorized;
|
||||||||
none issued or
outstanding
|
- | - | ||||||
Common stock, no par value;
10,000,000 shares authorized;
|
||||||||
6,392,772 at June 30, 2008 and
5,237,899 at December 31, 2007
|
||||||||
shares issued and
outstanding
|
2,264 | 1,109 | ||||||
Additional paid in
capital
|
58,203 | 43,763 | ||||||
Retained earnings
|
24,921 | 22,444 | ||||||
Accumulated other comprehensive
income (loss)
|
(1,297 | ) | 73 | |||||
Total stockholders'
equity
|
84,091 | 67,389 | ||||||
Total liabilities and
stockholders' equity
|
$ | 734,337 | $ | 549,255 |
Three
Months Ended June
30,
|
Six
Months Ended June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Interest
income
|
||||||||||||||||
Loans, including
fees
|
$ | 7,296 | $ | 6,754 | $ | 13,849 | $ | 13,518 | ||||||||
Securities available for
sale
|
||||||||||||||||
Taxable
|
1,858 | 1,373 | 3,388 | 2,669 | ||||||||||||
Tax-exempt
|
57 | 40 | 93 | 79 | ||||||||||||
Federal funds sold and
other
|
222 | 545 | 530 | 1,058 | ||||||||||||
Total interest
income
|
9,433 | 8,712 | 17,860 | 17,324 | ||||||||||||
Interest
expense
|
||||||||||||||||
Deposits
|
2,751 | 2,788 | 5,339 | 5,458 | ||||||||||||
Repurchase agreements and
other
|
53 | 86 | 106 | 165 | ||||||||||||
FHLB advances and other
borrowings
|
180 | 287 | 372 | 639 | ||||||||||||
Total interest
expense
|
2,984 | 3,161 | 5,817 | 6,262 | ||||||||||||
Net
interest income
|
6,449 | 5,551 | 12,043 | 11,062 | ||||||||||||
Provision
for loan losses
|
91 | (164 | ) | (44 | ) | (128 | ) | |||||||||
Net interest income after
provision for loan losses
|
6,358 | 5,715 | 12,087 | 11,190 | ||||||||||||
Non-interest
income
|
||||||||||||||||
Service charges on deposit
accounts
|
825 | 707 | 1,463 | 1,340 | ||||||||||||
Electronic banking
income
|
219 | 153 | 382 | 290 | ||||||||||||
Secondary market mortgage
income
|
139 | 153 | 300 | 288 | ||||||||||||
Life insurance
benefit
|
- | - | - | 212 | ||||||||||||
Gain on sale of
securities
|
93 | - | 93 | - | ||||||||||||
Other
|
276 | 92 | 380 | 221 | ||||||||||||
1,552 | 1,105 | 2,618 | 2,351 | |||||||||||||
Non-interest
expenses
|
||||||||||||||||
Salaries and employee
benefits
|
2,534 | 2,154 | 4,759 | 4,488 | ||||||||||||
Occupancy and equipment
expenses
|
668 | 502 | 1,168 | 1,007 | ||||||||||||
Outside data
processing
|
591 | 512 | 1,175 | 1,038 | ||||||||||||
Professional fees
|
222 | 113 | 401 | 191 | ||||||||||||
Taxes, other than payroll,
property and income
|
164 | 155 | 318 | 308 | ||||||||||||
Write-downs, expenses, sales
of
other real estate owned,
net
|
20 | 33 | 30 | 34 | ||||||||||||
Supplies
|
98 | 81 | 180 | 156 | ||||||||||||
Other expenses
|
707 | 577 | 1,095 | 1,053 | ||||||||||||
5,004 | 4,127 | 9,126 | 8,275 | |||||||||||||
Income
before income taxes
|
2,906 | 2,693 | 5,579 | 5,266 | ||||||||||||
Provision
for income taxes
|
976 | 903 | 1,875 | 1,690 | ||||||||||||
Net
income
|
$ | 1,930 | $ | 1,790 | $ | 3,704 | $ | 3,576 | ||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
6,012 | 5,237 | 5,625 | 5,237 | ||||||||||||
Diluted
|
6,018 | 5,268 | 5,653 | 5,266 | ||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | 0.32 | $ | 0.34 | $ | 0.66 | $ | 0.68 | ||||||||
Diluted
|
0.32 | 0.34 | 0.66 | 0.68 | ||||||||||||
Dividends
per share
|
0.11 | 0.10 | 0.21 | 0.20 |
Three
Months Ended June
30,
|
Six
Months Ended June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
income
|
$ | 1,930 | $ | 1,790 | $ | 3,704 | $ | 3,576 | ||||||||
Other comprehensive
income:
|
||||||||||||||||
Unrealized losses arising during
the period
|
(5,539 | ) | (1,108 | ) | (1,983 | ) | (538 | ) | ||||||||
Reclassification of realized
amount
|
(93 | ) | - | (93 | ) | - | ||||||||||
Net change in unrealized gain
(loss) on securities
|
(5,632 | ) | (1,108 | ) | (2,076 | ) | (538 | ) | ||||||||
Less tax impact
|
(1,915 | ) | (377 | ) | (706 | ) | (183 | ) | ||||||||
Other comprehensive
loss:
|
(3,717 | ) | (731 | ) | (1,370 | ) | (355 | ) | ||||||||
Comprehensive
income (loss)
|
$ | (1,787 | ) | $ | 1,059 | $ | 2,334 | $ | 3,221 |
2008
|
2007
|
|||||||
Cash
flows from operating activities
|
||||||||
Net income
|
$ | 3,704 | $ | 3,576 | ||||
Adjustments to reconcile net
income to net cash from
operating
activities
|
||||||||
Depreciation
|
461 | 387 | ||||||
Provision for loan
losses
|
(44 | ) | (128 | ) | ||||
Amortization (accretion),
net
|
(8 | ) | (20 | ) | ||||
FHLB stock
dividends
|
(67 | ) | - | |||||
OREO writedowns (gains on sales),
net
|
21 | 27 | ||||||
Stock compensation
expense
|
57 | 74 | ||||||
Loans originated for
sale
|
(15,727 | ) | (14,864 | ) | ||||
Secondary market loans
sold
|
14,949 | 13,552 | ||||||
Secondary market
income
|
(300 | ) | (288 | ) | ||||
Changes in :
|
||||||||
Interest
receivable
|
5 | (18 | ) | |||||
Other assets
|
1,003 | 750 | ||||||
Interest payable
|
(115 | ) | 85 | |||||
Other liabilities
|
239 | (231 | ) | |||||
Net cash from operating
activities
|
4,178 | 2,902 | ||||||
Cash
flows from investing activities
|
||||||||
Purchases of securities available
for sale
|
(58,350 | ) | (26,129 | ) | ||||
Proceeds from maturities and calls
of securities available for sale
|
44,099 | 23,507 | ||||||
Proceeds from sales of securities
available for sale
|
1,995 | 25 | ||||||
Purchases of
FHLB stock, net of redemptions
|
(99 | ) | (15 | ) | ||||
Purchases of subsidiaries, net of
cash received
|
(8,717 | ) | - | |||||
Net change in federal funds
sold
|
7,034 | (9,442 | ) | |||||
Net change in
loans
|
(7,887 | ) | 6 | |||||
Purchases of premises and
equipment, net
|
(716 | ) | (238 | ) | ||||
Proceeds from sale of other real
estate acquired through foreclosure
|
266 | 154 | ||||||
Net cash from investing
activities
|
(22,375 | ) | (12,132 | ) | ||||
Cash
flows from financing activities
|
||||||||
Net change in
deposits
|
2,346 | 15,154 | ||||||
Cash dividends
paid
|
(1,227 | ) | (1,047 | ) | ||||
Repayment of Federal Home Loan
Bank advances
|
(91 | ) | (2,274 | ) | ||||
Repayment of other borrowed
funds
|
(3,297 | ) | (3,168 | ) | ||||
Proceeds from other
borrowings
|
11,532 | - | ||||||
Net change in federal funds
purchased
|
(191 | ) | (976 | ) | ||||
Net change in agreements to
repurchase securities
|
11,328 | 971 | ||||||
Net cash from financing
activities
|
20,400 | 8,660 | ||||||
Net
change in cash and cash equivalents
|
2,203 | (570 | ) | |||||
Cash
and cash equivalents at beginning of period
|
22,365 | 16,974 | ||||||
Cash
and cash equivalents at end of period
|
$ | 24,568 | $ | 16,404 |
2008
|
2007
|
|||||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash paid during period for
interest
|
$ | 5,932 | $ | 6,177 | ||||
Loans transferred to real estate
acquired through foreclosure
|
251 | 187 | ||||||
Common stock issued to acquire Citizens First Bank, Inc. | 6,400 | |||||||
Common stock issued to acquire Traders Bankshares, Inc. | 9,138 |
June
30, 2008
|
||||||||||||||
Year
|
Total
|
Net
Income
|
||||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
Six Mos
|
|||||||||
Citizens
Deposit Bank & Trust
|
Vanceburg,
Kentucky
|
1991
|
$ | 123,769 | $ | 580 | $ | 1,025 | ||||||
Farmers
Deposit Bank
|
Eminence,
Kentucky
|
1996
|
68,813 | 190 | 460 | |||||||||
Ohio
River Bank
|
Ironton,
Ohio
|
1998
|
94,951 | 311 | 599 | |||||||||
First
Central Bank, Inc.
|
Philippi,
West Virginia
|
1998
|
111,873 | 337 | 673 | |||||||||
Boone
County Bank, Inc.
|
Madison,
West Virginia
|
1998
|
154,344 | 574 | 1,122 | |||||||||
Traders
Bank
|
Spencer,
West Virginia
|
2008
|
113,590 | 139 | 139 | |||||||||
Citizens
First Bank, Inc.
|
Ravenswood,
West Virginia
|
2008
|
67,840 | 127 | 127 | |||||||||
Mt.
Vernon Financial Holdings, Inc.
|
Huntington,
West Virginia
|
1999
|
349 | (7 | ) | 189 | ||||||||
Parent
and Intercompany Eliminations
|
(1,192 | ) | (321 | ) | (630 | ) | ||||||||
Consolidated
Total
|
$ | 734,337 | $ | 1,930 | $ | 3,704 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available
for sale
|
||||||||||||||||
U. S. Treasury
securities
|
$ | 2,489 | $ | 33 | $ | - | $ | 2,522 | ||||||||
U. S. agency
securities
|
108,292 | 392 | (1,276 | ) | 107,408 | |||||||||||
Obligations of states and
political subdivisions
|
7,235 | 21 | (75 | ) | 7,181 | |||||||||||
Mortgage-backed
securities
|
59,552 | 125 | (1,185 | ) | 58,492 | |||||||||||
Total available for
sale
|
$ | 177,568 | $ | 571 | $ | (2,536 | ) | $ | 175,603 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available
for sale
|
||||||||||||||||
U. S. Treasury
securities
|
$ | 5,477 | $ | 97 | $ | - | $ | 5,574 | ||||||||
U. S. agency
securities
|
74,515 | 427 | (83 | ) | 74,859 | |||||||||||
Obligations of states and
political subdivisions
|
3,789 | 31 | (4 | ) | 3,816 | |||||||||||
Mortgage-backed
securities
|
40,350 | 131 | (488 | ) | 39,993 | |||||||||||
Total available for
sale
|
$ | 124,131 | $ | 686 | $ | (575 | ) | $ | 124,242 |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S.
agency securities
|
$ | 65,789 | $ | (1,276 | ) | $ | - | $ | - | $ | 65,789 | $ | (1,276 | ) | ||||||||||
Obligations
of states and political
subdivisions
|
4,881 | (75 | ) | - | - | 4,881 | (75 | ) | ||||||||||||||||
Gov’t
guaranteed mortgage-backed
securities
|
7,520 | (111 | ) | 3,547 | (117 | ) | 11,067 | (228 | ) | |||||||||||||||
Mortgage-backed
securities
|
35,239 | (914 | ) | 845 | (43 | ) | 36,084 | (957 | ) | |||||||||||||||
Total
temporarily impaired
|
$ | 113,429 | $ | (2,376 | ) | $ | 4,392 | $ | (160 | ) | $ | 117,821 | $ | (2,536 | ) |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S.
agency securities
|
$ | 1,997 | $ | (3 | ) | $ | 24,712 | $ | (80 | ) | $ | 26,709 | $ | (83 | ) | |||||||||
Obligations
of states and political
subdivisions
|
245 | (3 | ) | 210 | (1 | ) | 455 | (4 | ) | |||||||||||||||
Gov’t
guaranteed mortgage-backed
securities
|
- | - | 11,019 | (239 | ) | 11,019 | (239 | ) | ||||||||||||||||
Mortgage-backed
securities
|
4,404 | (49 | ) | 10,179 | (200 | ) | 14,583 | (249 | ) | |||||||||||||||
Total
temporarily impaired
|
$ | 6,646 | $ | (55 | ) | $ | 46,120 | $ | (520 | ) | $ | 52,766 | $ | (575 | ) |
2008
|
2007
|
|||||||
Commercial,
secured by real estate
|
$ | 120,994 | $ | 100,278 | ||||
Commercial,
other
|
63,179 | 40,438 | ||||||
Real
estate construction
|
25,031 | 24,035 | ||||||
Residential
real estate
|
183,167 | 133,776 | ||||||
Agricultural
|
2,874 | 1,845 | ||||||
Consumer
and home equity
|
53,595 | 41,893 | ||||||
Other
|
2,986 | 4,305 | ||||||
$ | 451,826 | $ | 346,570 |
2008
|
2007
|
|||||||
Impaired
loans at period end with an allowance
|
$ | 10,697 | $ | 4,761 | ||||
Impaired
loan at period end with no allowance
|
244 | - | ||||||
Amount
of allowance for loan losses allocated
|
1,770 | 1,482 |
2008
|
2007
|
|||||||
Non-accrual
loans
|
$ | 5,109 | $ | 3,157 | ||||
Accruing
loans which are contractually past due 90 days or more
|
525 | 987 | ||||||
Restructured
loans
|
3,198 | 1,489 | ||||||
Total
|
$ | 8,832 | $ | 5,633 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Balance,
beginning of period
|
$ | 6,407 | $ | 6,576 | $ | 6,497 | $ | 6,661 | ||||||||
Gross
charge-offs
|
(186 | ) | (64 | ) | (265 | ) | (324 | ) | ||||||||
Recoveries
|
137 | 292 | 261 | 431 | ||||||||||||
Allowance
related to acquired banks
|
2,300 | - | 2,300 | - | ||||||||||||
Provision
for loan losses
|
91 | (164 | ) | (44 | ) | (128 | ) | |||||||||
Balance,
end of period
|
$ | 8,749 | $ | 6,640 | $ | 8,749 | $ | 6,640 |
2008
|
2007
|
|||||||
Payments
due at maturity in May 2010, fixed rate at rates from 6.25% to
6.64%, averaging 6.5%
|
$ | 4,000 | $ | 4,000 | ||||
Payments
due monthly with maturities from October 2011 to June 2012, fixed rates
from 4.10% to 4.40%, averaging 4.26%
|
752 | 843 | ||||||
$ | 4,752 | $ | 4,843 |
2008
(remaining six months)
|
$ | 130 | ||
2009
|
184 | |||
2010
|
4,191 | |||
2011
|
191 | |||
2012
|
56 | |||
Thereafter
|
- | |||
$ | 4,752 |
2008
(remaining six months)
|
$ | 800 | ||
2009
|
1,631 | |||
2010
|
1,673 | |||
2011
|
1,716 | |||
2012
|
1,762 | |||
Thereafter
|
8,755 | |||
$ | 16,337 |
June
30,
2008
|
December
31,
2007
|
Regulatory
Minimum
Requirements
|
To
Be Considered
Well
Capitalized
|
|||||||||||||
Tier
I Capital (to Risk-Weighted Assets)
|
14.3%
|
16.1% | 4.0% | 6.0% | ||||||||||||
Total
Capital (to Risk-Weighted Assets)
|
13.0% | 17.3% | 8.0% | 10.0% | ||||||||||||
Tier
I Capital (to Average Assets)
|
8.5% | 9.8% | 4.0% | 5.0% |
2008
|
2007
|
2006
|
||||||||||
Risk-free
interest rate
|
3.50 | % | 4.78 | % | 4.62 | % | ||||||
Expected
option life (yrs)
|
7.00 | 5.00 | 5.00 | |||||||||
Expected
stock price volatility
|
23.00 | % | 25.00 | % | 26.00 | % | ||||||
Dividend
yield
|
3.10 | % | 1.41 | % | 0.00 | % | ||||||
Weighted
average fair value of options
granted during the year
|
$ | 2.55 | $ | 3.81 | $ | 5.21 |
- - - - - - - - 2008 - - - -
- - - -
|
- - - - - - - - 2007 - - - - - - - -
|
|||||||||||||||
Weighted
Average
Exercise
|
Weighted
Average
Exercise
|
|||||||||||||||
Options
|
Price
|
Options
|
Price
|
|||||||||||||
Outstanding
at beginning of year
|
150,249 | $ | 12.65 | 120,248 | $ | 12.25 | ||||||||||
Grants
|
45,300 | 12.92 | 37,000 | 14.22 | ||||||||||||
Exercises
|
- | - | - | - | ||||||||||||
Forfeitures
or expired
|
- | - | (1,000 | ) | 14.22 | |||||||||||
Outstanding
at June 30,
|
195,549 | $ | 12.71 | 156,248 | $ | 12.70 | ||||||||||
Exercisable
at June 30,
|
117,433 | 85,764 | ||||||||||||||
Weighted
average remaining life of options
outstanding
|
7.1 | 7.4 | ||||||||||||||
Weighted
average fair value of options granted
during the year
|
$ | 2.55 | $ | 3.81 |
- - - - - - - - Outstanding - - - - - - -
-
|
- - - - - - - - Currently Exercisable - - - - - -
- -
|
|||||||||||||||||||||||||||||
Range
of Exercise Prices
|
Number
|
Weighted
Average Exercise Price
|
Aggregate
Intrinsic Value
|
Number
|
Weighted
Average Remaining Contractual Life
|
Weighted
Average Exercise Price
|
Aggregate
Intrinsic Value
|
|||||||||||||||||||||||
$7.50 to $10.00 | 42,416 | $ | 8.69 | $ | 82 | 42,416 | 5.1 | $ | 8.69 | $ | 82 | |||||||||||||||||||
$10.01 to $12.50 | 31,833 | 11.62 | 0 | 31,833 | 6.6 | 11.62 | 0 | |||||||||||||||||||||||
$12.51 to $15.00 | 78,800 | 13.47 | 0 | 11,175 | 8.6 | 14.22 | 0 | |||||||||||||||||||||||
$15.01 to $17.50 | 42,500 | 16.13 | 0 | 32,009 | 5.2 | 16.17 | 0 | |||||||||||||||||||||||
Outstanding
- Jun 30, 2008
|
195,549 | 12.71 | $ | 82 | 117,433 | 5.9 | 12.05 | $ | 82 |
Fair
Value Measurements at June 30, 2008 Using
|
||||||||||||||||
June
30, 2008
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Available
for sale securities
|
$ | 175,603 | $ | 2,522 | $ | 173,081 | $ | - |
Fair
Value Measurements at June 30, 2008 Using
|
||||||||||||||||
June 30,
2008
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired
Loans
|
$ | 8,927 | $ | - | $ | - | $ | 9,171 |
Citizens
First
|
Traders
|
|||||||
Cash
and due from banks
|
$ | 2,300 | $ | 3,285 | ||||
Federal
funds sold
|
8,394 | 2,448 | ||||||
Securities
available for sale
|
4,097 | 40,643 | ||||||
Loans,
net
|
44,773 | 50,551 | ||||||
Goodwill
and other intangible assets
|
5,806 | 8,655 | ||||||
Other
assets
|
2,678 | 6,478 | ||||||
Total assets
acquired
|
68,048 | 112,060 | ||||||
Deposits
|
(56,020 | ) | (92,807 | ) | ||||
Other
liabilities
|
(328 | ) | (1,113 | ) | ||||
Total liabilities
assumed
|
(56,348 | ) | (93,920 | ) | ||||
Net assets
acquired
|
$ | 11,700 | $ | 18,140 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Interest
income
|
$ | 10,292 | $ | 11,382 | $ | 21,278 | $ | 22,673 | ||||||||
Interest
expense
|
3,292 | 4,212 | 7,127 | 8,304 | ||||||||||||
Net interest
income
|
6,990 | 7,170 | 14,151 | 14,369 | ||||||||||||
Provision
for loan losses
|
91 | (164 | ) | (44 | ) | (93 | ) | |||||||||
Net interest income after
provision
|
6,899 | 7,334 | 14,195 | 14,462 | ||||||||||||
Non-interest
income
|
1,609 | 1,354 | 2,912 | 2,801 | ||||||||||||
Non-interest
expense
|
7,745 | 5,703 | 13,388 | 11,310 | ||||||||||||
Income before income
taxes
|
763 | 2,985 | 3,719 | 5,953 | ||||||||||||
Income
tax expense
|
201 | 1,003 | 1,188 | 1,951 | ||||||||||||
Net income
|
$ | 562 | $ | 1,982 | $ | 2,531 | $ | 4,002 | ||||||||
Basic
earnings per share
|
$ | 0.09 | 0.31 | $ | 0.40 | $ | 0.63 | |||||||||
Diluted
earnings per share
|
0.09 | 0.31 | 0.39 | 0.62 |
PREMIER
FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Six Months Ended June 30,
2008
|
Six Months Ended June 30,
2007
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and
other
|
$ | 41,151 | $ | 530 | 2.58 | % | $ | 40,452 | $ | 1,058 | 5.27 | % | ||||||||||||
Securities available for
sale
|
||||||||||||||||||||||||
Taxable
|
149,683 | 3,388 | 4.53 | 121,293 | 2,669 | 4.40 | ||||||||||||||||||
Tax-exempt
|
5,023 | 93 | 5.61 | 4,153 | 79 | 5.76 | ||||||||||||||||||
Total investment
securities
|
154,706 | 3,481 | 4.56 | 125,446 | 2,748 | 4.45 | ||||||||||||||||||
Total loans
|
375,350 | 13,849 | 7.40 | 343,476 | 13,518 | 7.94 | ||||||||||||||||||
Total interest-earning
assets
|
571,207 | 17,860 | 6.28 | % | 509,374 | 17,324 | 6.87 | % | ||||||||||||||||
Allowance
for loan losses
|
(7,259 | ) | (6,669 | ) | ||||||||||||||||||||
Cash
and due from banks
|
16,163 | 13,874 | ||||||||||||||||||||||
Other
assets
|
34,982 | 29,249 | ||||||||||||||||||||||
Total assets
|
$ | 615,093 | $ | 545,828 | ||||||||||||||||||||
Liabilities
and Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
deposits
|
$ | 422,888 | 5,339 | 2.53 | $ | 376,586 | 5,458 | 2.92 | ||||||||||||||||
Short-term
borrowings
|
13,183 | 106 | 1.61 | 13,175 | 165 | 2.53 | ||||||||||||||||||
FHLB advances
|
4,791 | 147 | 6.15 | 5,837 | 196 | 6.77 | ||||||||||||||||||
Other
borrowings
|
9,341 | 225 | 4.83 | 11,375 | 443 | 7.85 | ||||||||||||||||||
Total interest-bearing
liabilities
|
450,203 | 5,817 | 2.59 | % | 406,973 | 6,262 | 3.10 | % | ||||||||||||||||
Non-interest
bearing deposits
|
84,340 | 73,999 | ||||||||||||||||||||||
Other
liabilities
|
5,838 | 2,428 | ||||||||||||||||||||||
Shareholders’
equity
|
74,712 | 62,428 | ||||||||||||||||||||||
Total liabilities and
equity
|
$ | 615,093 | $ | 545,828 | ||||||||||||||||||||
Net
interest earnings
|
$ | 12,043 | $ | 11,062 | ||||||||||||||||||||
Net
interest spread
|
3.69 | % | 3.77 | % | ||||||||||||||||||||
Net
interest margin
|
4.24 | % | 4.39 | % | ||||||||||||||||||||
PREMIER
FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended June 30,
2008
|
Three Months Ended June 30,
2007
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and
other
|
$ | 43,184 | $ | 222 | 2.06 | % | $ | 41,897 | $ | 545 | 5.22 | % | ||||||||||||
Securities available for
sale
|
||||||||||||||||||||||||
Taxable
|
166,881 | 1,858 | 4.45 | 121,928 | 1,373 | 4.50 | ||||||||||||||||||
Tax-exempt
|
6,237 | 57 | 5.54 | 4,179 | 40 | 5.80 | ||||||||||||||||||
Total investment
securities
|
173,118 | 1,915 | 4.49 | 126,107 | 1,413 | 4.55 | ||||||||||||||||||
Total loans
|
412,090 | 7,296 | 7.10 | 343,779 | 6,754 | 7.88 | ||||||||||||||||||
Total interest-earning
assets
|
628,392 | 9,433 | 6.04 | % | 511,782 | 8,712 | 6.84 | % | ||||||||||||||||
Allowance
for loan losses
|
(7,958 | ) | (6,648 | ) | ||||||||||||||||||||
Cash
and due from banks
|
18,104 | 13,485 | ||||||||||||||||||||||
Other
assets
|
42,730 | 29,228 | ||||||||||||||||||||||
Total assets
|
$ | 681,268 | $ | 547,848 | ||||||||||||||||||||
Liabilities
and Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
deposits
|
$ | 468,328 | 2,751 | 2.36 | $ | 378,653 | 2,788 | 2.95 | ||||||||||||||||
Short-term
borrowings
|
13,598 | 53 | 1.56 | 13,416 | 86 | 2.57 | ||||||||||||||||||
FHLB advances
|
4,768 | 73 | 6.14 | 5,028 | 76 | 6.06 | ||||||||||||||||||
Debentures
|
10,474 | 107 | 4.10 | 10,683 | 211 | 7.92 | ||||||||||||||||||
Total interest-bearing
liabilities
|
497,168 | 2,984 | 2.41 | % | 407,780 | 3,161 | 3.11 | % | ||||||||||||||||
Non-interest
bearing deposits
|
94,539 | 74,427 | ||||||||||||||||||||||
Other
liabilities
|
8,941 | 2,458 | ||||||||||||||||||||||
Shareholders’
equity
|
80,620 | 63,183 | ||||||||||||||||||||||
Total liabilities and
equity
|
$ | 681,268 | $ | 547,848 | ||||||||||||||||||||
Net
interest earnings
|
$ | 6,449 | $ | 5,551 | ||||||||||||||||||||
Net
interest spread
|
3.63 | % | 3.73 | % | ||||||||||||||||||||
Net
interest margin
|
4.13 | % | 4.36 | % | ||||||||||||||||||||
(In
Thousands)
|
||||||||
2008
|
2007
|
|||||||
Non-accrual
loans
|
$ | 5,109 | $ | 3,157 | ||||
Accruing
loans which are contractually past
due 90 days or more
|
525 | 987 | ||||||
Restructured
|
3,198 | 1,489 | ||||||
Total non-performing
loans
|
8,832 | 5,633 | ||||||
Other
real estate acquired through foreclosure
(OREO)
|
688 | 174 | ||||||
Total non-performing
assets
|
$ | 9,520 | $ | 5,807 | ||||
Non-performing
loans as a percentage of
total loans
|
1.95 | % | 1.63 | % | ||||
Non-performing
assets as a percentage of
total assets
|
1.30 | % | 1.06 | % |
|
1.
|
Core
deposits consisting of both consumer and commercial deposits and
certificates of deposit of $100,000 or more. Management
believes that the majority of its $100,000 or more certificates of deposit
are no more volatile than its other deposits. This is due to
the nature of the markets in which the subsidiaries
operate.
|
|
2.
|
Cash
flow generated by repayment of loans and
interest.
|
|
3.
|
Arrangements
with correspondent banks for purchase of unsecured federal
funds.
|
|
4.
|
The
sale of securities under repurchase agreements and borrowing from the
Federal Home Loan Bank.
|
|
5.
|
Maintenance
of an adequate available-for-sale security portfolio. The
Company owns $175.6 million of securities at market value as of June 30,
2008.
|
/s/
Robert W. Walker
|
/s/
Brien M. Chase
|
|
Robert
W. Walker, President and
|
Brien
M. Chase, Senior Vice President
|
|
Chief
Executive Officer
|
and
Chief Financial Officer
|
|
Date: August
13, 2008
|
Date: August
13, 2008
|
|
(a)
|
Annual
meeting of the Shareholders was held June 18,
2008.
|
(b)
|
All
director nominees were elected.
|
(c)
|
Certain
matters voted upon at the meeting and the votes cast with respect to such
matters are as follows:
|
Director
|
Votes
Received
|
Votes
Withheld
|
||||||
1. Toney
K. Adkins
|
4,237,669 | 17,565 | ||||||
2. Hosmer
A. Brown, III
|
4,250,766 | 4,468 | ||||||
3. Edsel
R. Burns
|
4,250,592 | 4,642 | ||||||
4. E.
V. Holder, Jr.
|
4,250,766 | 4,468 | ||||||
5. Keith
F. Molihan
|
4,250,566 | 4,668 | ||||||
6. Marshall
T. Reynolds
|
4,046,109 | 209,125 | ||||||
7. Neal
Scaggs
|
4,249,992 | 5,242 | ||||||
8. Robert
W. Walker
|
4,250,640 | 4,594 | ||||||
9. Thomas
W. Wright
|
4,250,692 | 4,542 |