Limestone Bancorp (LMST) 8-K Porter Bancorp, Inc. Reports Growth in First Quarter Net Income

Exhibit 99.1

Porter Bancorp, Inc. Reports Growth in First Quarter Net Income

LOUISVILLE, Ky.--(BUSINESS WIRE)--April 30, 2012--Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported unaudited results for the first quarter of 2012. The Company also announced that it filed its first quarter 10-Q with the Securities and Exchange Commission.

The Company reported growth in net income available to common shareholders of $985,000, or $0.08 per diluted share, for the first quarter of 2012 compared with $305,000, or $0.03 per diluted share, for the first quarter of 2011.

The increase in net income was primarily attributable to the gain on sale of investment securities in the first quarter of 2012 which totaled $2.0 million compared with $83,000 in the first quarter of 2011 and a decrease in our provision for loan losses in the first quarter of 2012 which totaled $3.8 million compared to $5.1 million in the first quarter of 2011. Those improvements were partially offset by lower net interest income in the first quarter of 2012 compared with the first quarter of 2011.

Non-performing loans increased to $98.0 million, or 8.92% of total loans, at March 31, 2012, compared with $93.4 million, or 8.22% of total loans, at December 31, 2011. Non-performing assets decreased on a dollar basis to $133.5 million, or 9.61% of total assets, compared with $134.8 million, or 9.26% of total assets, at December 31, 2011.

Foreclosed properties at March 31, 2012 declined to $35.6 million compared with $41.4 million at December 31, 2011, and $73.9 million at March 31, 2011. The Company sold $9.6 million in other real estate owned during the first quarter of 2012. Our ratio of non-performing assets to total assets increased to 9.61% at March 31, 2012, compared with 8.28% at March 31, 2011.

At March 31, 2012, PBI Bank’s Tier 1 leverage ratio was 7.07% and its Total risk-based capital ratio was 11.38%, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order. At March 31, 2012, Porter Bancorp’s leverage ratio was 7.30%, compared with 6.53% at December 31, 2011, and its Total risk based capital ratio was 11.68% compared with 11.22% at December 31, 2011. We are continuing our efforts to strengthen our capital levels and comply with the Consent Order.

More detailed information regarding the Company’s result of operations are included in Porter Bancorp’s 10-Q filed with the Securities and Exchange Commission for the quarter ended March 31, 2012.

Non-Accrual Loan Activity
	(in thousands)
Non-accrual loans at December 31, 2011	$	92,020
Net principal pay-downs		(5,240	)
Charge-offs		(2,312	)
Loans foreclosed and transferred to OREO		(3,829	)
Loans placed on non-accrual during the period		16,591
Non-accrual loans at March 31, 2012	$	97,230

Other Real Estate Owned (OREO) Activity (Net of Allowance)
	(in thousands)
OREO at December 31, 2011	$	41,449
Real estate acquired		4,216
Valuation adjustment write downs		(480	)
Improvements		1
Proceeds from sales of properties		(9,210	)
Gain (loss) on sales, net		(402	)
OREO at March 31, 2012	$	35,574

Forward-Looking Statements

Statements in this press release relating to Porter Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements. These forward-looking statements are based on management’s current expectations. Porter Bancorp’s actual results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed under “Risk Factors” in the Company’s Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of the release and Porter Bancorp does not assume any responsibility to update these statements.

Additional Information

Unaudited supplemental financial information for the first quarter ending March 31, 2012 follows.

PORTER BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share data)
	Three		Three			Three
	Months		Months			Months
	Ended		Ended			Ended
	3/31/12		12/31/11			3/31/11
Income Statement Data
Interest income	$	15,755	$	16,637		$	19,616
Interest expense		4,301		4,986			5,848
Net interest income		11,454		11,651			13,768
Provision for loan losses		3,750		35,800			5,100
Net interest income after provision		7,704		(24,149	)		8,668
Service charges on deposit accounts		554		630			630
Income from fiduciary activities		251		255			255
Gains on sales of loans originated for sale		45		49			221
Gains (losses) on sales of securities, net		2,019		—			83
Other than temporary impairment on securities		—		(41	)		—
Other		576		588			598
Non-interest income		3,445		1,481			1,787
Salaries & employee benefits		4,312		3,134			4,124
Occupancy and equipment		886		819			972
Other real estate owned expense		1,257		7,020			1,367
FDIC insurance		873		830			855
Franchise tax		592		482			582
Loan collection expense		360		520			262
Professional fees		356		429			280
Communications expense		180		169			168
Borrowing prepayment fees		—		486			—
Postage and delivery		122		117			123
Advertising		33		32			102
Other		676		658			560
Non-interest expense		9,647		14,696			9,395
Income (loss) before income taxes		1,502		(37,364	)		1,060
Income tax expense		—		18,591			261
Net income (loss)		1,502		(55,955	)		799
Less:
Dividends on preferred stock		437		438			438
Accretion on preferred stock		45		44			44
Earnings (loss) allocated to participating securities		35		(1,980	)		12
Net income (loss) available to common	$	985	$	(54,457	)	$	305
Weighted average shares – Basic		11,735,451		11,724,456			11,704,651
Weighted average shares – Diluted		11,735,451		11,724,456			11,704,651
Basic earnings (loss) per common share	$	0.08	$	(4.64	)	$	0.03
Diluted earnings (loss) per common share	$	0.08	$	(4.64	)	$	0.03
Cash dividends declared per common share	$	0.00	$	0.00		$	0.01

PORTER BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share data)
	Three			Three			Three
	Months			Months			Months
	Ended			Ended			Ended
	3/31/12			12/31/11			3/31/11
Average Balance Sheet Data
Assets	$	1,412,606		$	1,569,669		$	1,738,253
Loans		1,119,181			1,189,123			1,290,851
Earning assets		1,350,878			1,463,093			1,591,561
Deposits		1,279,287			1,379,093			1,481,192
Long-term debt and advances		39,551			44,040			48,275
Interest bearing liabilities		1,207,855			1,320,481			1,434,718
Stockholders’ equity		84,659			130,250			190,585
Performance Ratios
Return on average assets		0.43	%		(14.14	)%		0.19	%
Return on average equity		7.14			(170.44	)		1.70
Yield on average earning assets (tax equivalent)		4.73			4.55			5.03
Cost of interest bearing liabilities		1.43			1.50			1.65
Net interest margin (tax equivalent)		3.45			3.20			3.54
Efficiency ratio		74.90			111.56			60.72
Loan Charge-off Data
Loans charged-off	$	(2,582	)	$	(22,816	)	$	(5,867	)
Recoveries		206			103			81
Net charge-offs	$	(2,376	)	$	(22,713	)	$	(5,786	)

PORTER BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share data)
	As of			As of			As of
	3/31/12			12/31/11			3/31/11
Assets
Loans	$	1,098,962		$	1,136,717		$	1,277,497
Loan loss reserve		(53,953	)		(52,579	)		(33,599	)
Net loans		1,045,009			1,084,138			1,243,898
Securities available for sale		174,918			158,833			163,032
Federal funds sold & interest bearing deposits		62,560			92,034			146,477
Cash and due from financial institutions		10,047			13,928			15,626
Premises and equipment		21,296			21,541			22,175
Other real estate owned		35,574			41,449			73,942
Goodwill		—			—			23,794
Deferred tax assets		—			—			12,720
Accrued interest receivable and other assets		40,219			43,501			35,443
Total Assets	$	1,389,623		$	1,455,424		$	1,737,107
Liabilities and Equity
Certificates of deposit	$	951,503		$	1,024,333		$	1,168,841
Interest checking		85,608			87,653			85,343
Money market		63,701			64,302			83,133
Savings		38,631			36,357			38,234
Total interest bearing deposits		1,139,443			1,212,645			1,375,551
Demand deposits		114,304			111,118			106,772
Total deposits		1,253,747			1,323,763			1,482,323
Federal funds purchased & repurchase agreements		1,926			1,738			11,429
FHLB advances		6,789			7,116			14,564
Junior subordinated debentures		32,425			32,650			33,550
Accrued interest payable and other liabilities		11,945			7,628			5,507
Total liabilities		1,306,832			1,372,895			1,547,373
Stockholders’ equity		82,791			82,529			189,734
Total Liabilities and Stockholders’ Equity	$	1,389,623		$	1,455,424		$	1,737,107
Ending shares outstanding		11,822,102			11,824,472			11,840,176
Book value per common share	$	3.76		$	3.74		$	12.79
Tangible book value per common share		3.57			3.54			10.37
Asset Quality Data
Loan 90 days or more past due still on accrual	$	733		$	1,350		$	3,907
Non-accrual loans		97,230			92,020			65,964
Total non-performing loans		97,963			93,370			69,871
Real estate acquired through foreclosures		35,574			41,449			73,942
Other repossessed assets		11			5			41
Total non-performing assets	$	133,548		$	134,824		$	143,854
Non-performing loans to total loans		8.92	%		8.22	%		5.47	%
Non-performing assets to total assets		9.61			9.26			8.28
Allowance for loan losses to non-performing loans		55.07			56.31			48.09
Allowance for loan losses to total loans		4.91			4.63			2.63
Risk-based Capital Ratios
Tier I leverage ratio		7.30	%		6.53	%		10.93	%
Tier I risk-based capital ratio		9.68			9.23			14.59
Total risk-based capital ratio		11.68			11.22			16.52
FTE employees		298			291			300

PBIB-F PBIB-G

CONTACT:
Porter Bancorp, Inc.
Maria L. Bouvette, President and CEO, 502-499-4800