Exhibit 99.1
Porter Bancorp Reports 2nd Quarter 2016 Net Income of $979,000 or $0.03 Per Diluted Share
Reports 17% NPA Reduction in 2nd Quarter
LOUISVILLE, Ky.--(BUSINESS WIRE)--July 27, 2016--Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, today reported unaudited results for the second quarter of 2016.
The Company reported that net income available to common shareholders for the second quarter of 2016 was $979,000, or $0.03 per basic and diluted common share, compared with net loss attributable to common shareholders of $2.0 million, or ($0.08) per basic and diluted share, for the second quarter of 2015. Net income available to common shareholders for the six months ended June 30, 2016, was $2.4 million, or $0.09 per diluted common share, compared with net loss attributable to common shareholders of $1.3 million, or ($0.06) per diluted share, for the six months ended June 30, 2015.
John T. Taylor, President and CEO of the Company noted, “PBI Bank has continued to make significant progress in reducing its non-performing assets. In the second quarter of 2016, non-performing assets were reduced by $5.1 million after achieving reductions of $4.3 million in the first quarter of 2016. In addition to lowering the risk profile of the Company, we are pleased to see a second consecutive profitable quarter, as the cost to remediate non-performing assets continues to decline, and we continue the all-important work of attracting new customers and providing high quality service to our existing customer base.”
Net Interest Income – Net interest income before provision expense decreased to $7.2 million for the second quarter of 2016 compared with $7.7 million in the first quarter of 2016, and $7.3 million in the second quarter of 2015. Net interest income was positively impacted in the first quarter of 2016 by the collection of previously charged-off accrued uncollected interest of approximately $285,000. Average loans declined slightly to $619.3 million for the second quarter of 2016 compared with $620.1 million in the first quarter of 2016 and declined compared to $641.6 million in the second quarter of 2015. Net interest margin decreased to 3.34% in the second quarter of 2016, compared with 3.53% in the first quarter of 2016 and increased compared to 3.21% in the second quarter of 2015.
Our yield on earning assets declined to 4.03% in the second quarter of 2016 compared to 4.23% in the first quarter of 2016 and improved slightly compared to 4.00% in the second quarter of 2015. As mentioned above, the yield on earning assets was positively impacted in the first quarter of 2016 by the collection of previously charged-off accrued uncollected interest of approximately $285,000 along with the full unpaid balance on three nonaccrual loans. Our cost of funds was 0.79% in the second quarter of 2016 and the first quarter of 2016 and improved from 0.87% in the second quarter of 2015.
Allowance for Loan Losses – The allowance for loan losses to total loans was 1.62% at June 30, 2016, compared to 1.83% at March 31, 2016, and 2.59% at June 30, 2015. The declining level of the allowance is primarily driven by declining historical charge-off levels and improving trends in credit quality. Net loan charge-offs were $636,000 for the second quarter of 2016, compared to net charge-offs of $151,000 for the first quarter of 2016 and net charge-offs of $1.8 million for the second quarter of 2015. The allowance for loan losses for loans evaluated collectively for impairment was 1.66% at June 30, 2016, compared with 1.83% at March 31, 2016, and 2.66% at June 30, 2015.
Because of ongoing improvements in asset quality and management’s assessment of risk in the loan portfolio, a negative provision of $600,000 was recorded for the second quarter of 2016, compared to a negative provision of $550,000 for the first quarter of 2016 and no provision for loan losses in the second quarter of 2015.
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 $23.9 million, or 2.61% of total assets at June 30, 2016, compared with $29.0 million, or 3.09% of total assets at March 31, 2016, and $69.9 million, or 7.13% of total assets at June 30, 2015.
Non-performing loans increased slightly to $11.6 million, or 1.86% of total loans at June 30, 2016, compared with $11.1 million, or 1.79% of total loans at March 31, 2016, and decreased from $30.3 million, or 4.67% of total loans at June 30, 2015. The increase from the previous quarter was primarily driven by $2.0 million in loans being placed on nonaccrual during the second quarter. The impact of loans placed on nonaccrual was offset by $731,000 in principal payments received on nonaccrual loans, $135,000 of nonaccrual loans migrating to OREO, and $344,000 in charge-offs.
OREO at June 30, 2016, decreased to $12.3 million, compared with $17.9 million at March 31, 2016, and $39.5 million at June 30, 2015. The Company acquired $135,000 in OREO and sold $5.6 million in OREO during the second quarter of 2016. Fair value write-downs arising from lower marketing prices or new appraisals totaled $150,000 in the second quarter of 2016, compared with $500,000 in the first quarter of 2016 and $2.3 million in the second quarter of 2015.
The following table details past due loans and non-performing assets as of:
| | | | | | | | | | | | | | | | |
| | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, |
| | | | 2016 | | | 2016 | | | 2015 | | | 2015 | | | 2015 |
| | | | (in thousands) |
| Past due loans: | | | | | | | | | | | | | | | | |
| 30 – 59 days | | | $ | 2,401 | | $ | 1,829 | | | $ | 3,133 | | | $ | 1,972 | | | $ | 1,941 |
| 60 – 89 days | | | | 336 | | | 62 | | | | 241 | | | | 578 | | | | 650 |
| 90 days or more | | | | — | | | — | | | | — | | | | — | | | | 92 |
| Nonaccrual loans | | | | 11,599 | | | 11,119 | | | | 14,087 | | | | 16,987 | | | | 30,215 |
Total past due and nonaccrual loans | | | $ | 14,336 | | $ | 13,010 | | | $ | 17,461 | | | $ | 19,537 | | | $ | 32,898 |
| | | | | | | | | | | | | | | | | | | |
| Loans past due 90 days or more | | | $ | — | | $ | — | | | $ | — | | | $ | — | | | $ | 92 |
| Nonaccrual loans | | | | 11,599 | | | 11,119 | | | | 14,087 | | | | 16,987 | | | | 30,215 |
| OREO | | | | 12,322 | | | 17,861 | | | | 19,214 | | | | 29,177 | | | | 39,545 |
| Other repossessed assets | | | | — | | | — | | | | — | | | | — | | | | — |
Total non-performing Assets | | | $ | 23,921 | | $ | 28,980 | | | $ | 33,301 | | | $ | 46,164 | | | $ | 69,852 |
| | | | | | | | | | | | | | | | | | | |
In addition to nonaccrual loans and OREO, loans classified as Troubled Debt Restructures (TDRs) and on accrual totaled $13.9 million at June 30, 2016, compared to $14.9 million at March 31, 2016, and $18.5 million at June 30, 2015.
Non-interest Income – Non-interest income decreased $239,000 to $1.2 million for the second quarter of 2016, compared with $1.4 million for the first quarter of 2016, and decreased $413,000 compared with $1.6 million for the second quarter of 2015. There was no gain on sales of securities in the second quarter of 2016, compared to $203,000 in the first quarter of 2016 and $199,000 in the second quarter of 2015. Additionally, OREO income has continued to decline as income producing properties have been sold.
Non-interest Expense – Non-interest expense decreased $155,000 to $7.9 million for the second quarter of 2016, compared with $8.1 million for the first quarter of 2016, and decreased $3.1 million compared with $11.0 million for the second quarter of 2015. The decrease from the first quarter of 2016 was primarily due to a reduction in OREO expenses of approximately $374,000 as fair value write downs based upon listing prices as well as new appraisals declined from $500,000 in the first quarter of 2016 to $150,000 in the second quarter. The decrease in OREO expense was offset by increases in professional fees of approximately $107,000 and loan collection expense of approximately $189,000. Loan collection expense was positively impacted in the first quarter of 2016 by recoveries of approximately $70,000 in previously incurred expenses.
Capital – On April 15, 2016, we completed a $5.03 million stock offering to accredited investors in a private placement transaction in which we sold 2,300,000 Common Shares and 1,100,000 Non-Voting Common Shares to non-affiliate investors at $1.25 per share. Three directors of the Company, including President and CEO John T. Taylor, also purchased a total of 600,000 Common Shares for $1.30 per share, but otherwise on the same terms and conditions as the other investors. Approximately $2.8 million of the proceeds were directed by the investors to make interest payments on the outstanding capital securities of the Company’s subsidiary trusts, bringing interest payments current through the second quarter of 2016. Also from the proceeds, the Company made a $500,000 capital contribution to PBI Bank and the balance of the proceeds will be used for general corporate purposes.
At June 30, 2016, PBI Bank’s Tier 1 leverage ratio was 6.65% compared with 6.39% at March 31, 2016, and its Total risk-based capital ratio was 10.87% at June 30, 2016, compared with 10.64% at March 31, 2016, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order. At June 30, 2016, Porter Bancorp’s leverage ratio was 5.87% compared with 5.03% at March 31, 2016, and its Total risk-based capital ratio was 11.31%, compared with 10.46% at March 31, 2016. At June 30, 2016, PBI Bank’s Common equity Tier I risk-based capital ratio was 9.22%, and Porter Bancorp’s Common equity Tier I risk-based capital ratio was 6.11%.
About Porter Bancorp, Inc.
Porter Bancorp, Inc. (NASDAQ: PBIB) is a Louisville, Kentucky-based bank holding company which operates banking centers in 12 counties through its wholly-owned subsidiary PBI Bank. Our markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt, and extend south along the Interstate 65 corridor. We serve southern and south central Kentucky from banking centers in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess counties. We also have a banking center in Lexington, Kentucky, the second largest city in the state. PBI Bank is a traditional community bank with a wide range of personal and business banking products and services.
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,” “possible,” “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 indicated by forward-looking statements due to various risks and uncertainties, including our ability to reduce our level of higher risk loans such as commercial real estate and real estate development loans, reduce our level of non-performing loans and other real estate owned, and increase net interest income in a low interest rate environment, as well as our need to increase capital. These and other risks and uncertainties are described in greater detail 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 second quarter ending June 30, 2016 follows.
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PORTER BANCORP, INC. |
Unaudited Financial Information |
(in thousands, except share and per share data) |
| | | | | | | | | | | |
| | Three | | Three | | Three | | Six | | Six | |
| | Months | | Months | | Months | | Months | | Months | |
| | Ended | | Ended | | Ended | | Ended | | Ended | |
| | 6/30/16 | | 3/31/16 | | 6/30/15 | | 6/30/16 | | 6/30/15 | |
| | | | | | | | | | | |
| Income Statement Data | | | | | | | | | | | | | | | | |
| Interest income | | $ | 8,705 | | $ | 9,185 | | $ | 9,167 | | $ | 17,890 | | $ | 18,370 | |
| Interest expense | | | 1,509 | | | 1,534 | | | 1,828 | | | 3,043 | | | 3,741 | |
| Net interest income | | | 7,196 | | | 7,651 | | | 7,339 | | | 14,847 | | | 14,629 | |
| Provision (negative provision) for loan losses | | | (600) | | | (550 | ) | | — | | | (1,150) | | | — | |
| Net interest income after provision | | | 7,796 | | | 8,201 | | | 7,339 | | | 15,997 | | | 14,629 | |
| | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 473 | | | 429 | | | 475 | | | 902 | | | 884 | |
| Bank card interchange fees | | | 221 | | | 202 | | | 229 | | | 423 | | | 432 | |
| Other real estate owned income | | | 149 | | | 256 | | | 372 | | | 405 | | | 729 | |
| Gains (losses) on sales of securities, net | | | — | | | 203 | | | 199 | | | 203 | | | 1,696 | |
| Other | | | 309 | | | 301 | | | 290 | | | 610 | | | 520 | |
| Non-interest income | | | 1,152 | | | 1,391 | | | 1,565 | | | 2,543 | | | 4,261 | |
| | | | | | | | | | | | | | | | |
| Salaries & employee benefits | | | 3,857 | | | 3,822 | | | 4,028 | | | 7,679 | | | 7,875 | |
| Occupancy and equipment | | | 808 | | | 854 | | | 828 | | | 1,662 | | | 1,698 | |
| Professional fees | | | 492 | | | 385 | | | 714 | | | 877 | | | 1,693 | |
| FDIC insurance | | | 493 | | | 523 | | | 564 | | | 1,016 | | | 1,134 | |
| Data processing expense | | | 295 | | | 297 | | | 278 | | | 592 | | | 582 | |
| State franchise and deposit tax | | | 255 | | | 255 | | | 285 | | | 510 | | | 570 | |
| Other real estate owned expense | | | 294 | | | 668 | | | 2,932 | | | 962 | | | 3,665 | |
| Loan collection expense | | | 271 | | | 82 | | | 291 | | | 353 | | | 574 | |
| Other | | | 1,171 | | | 1,205 | | | 1,114 | | | 2,376 | | | 2,635 | |
| Non-interest expense | | | 7,936 | | | 8,091 | | | 11,034 | | | 16,027 | | | 20,426 | |
| | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | 1,012 | | | 1,501 | | | (2,130 | ) | | 2,513 | | | (1,536 | ) |
| Income tax expense | | | — | | | 21 | | | — | | | 21 | | | — | |
| Net income (loss) | | | 1,012 | | | 1,480 | | | (2,130 | ) | | 2,492 | | | (1,536 | ) |
| Less: | | | | | | | | | | | | | | | | |
| Earnings (loss) allocated to participating securities | | | 33 | | | 51 | | | (91 | ) | | 84 | | | (269 | ) |
| Net income (loss) available to common | | $ | 979 | | $ | 1,429 | | $ | (2,039 | ) | $ | 2,408 | | $ | (1,267 | ) |
| | | | | | | | | | | | | | | | |
| Weighted average shares – Basic | | | 29,389,804 | | | 26,025,327 | | | 24,589,507 | | | 27,694,075 | | | 21,079,238 | |
| Weighted average shares – Diluted | | | 29,389,804 | | | 26,025,327 | | | 24,589,507 | | | 27,694,075 | | | 21,079,238 | |
| | | | | | | | | | | | | | | | |
| Basic earnings (loss) per common share | | $ | 0.03 | | $ | 0.05 | | $ | (0.08 | ) | $ | 0.09 | | $ | (0.06 | ) |
| Diluted earnings (loss) per common share | | $ | 0.03 | | $ | 0.05 | | $ | (0.08 | ) | $ | 0.09 | | $ | (0.06 | ) |
| Cash dividends declared per common share | | $ | 0.00 | | $ | 0.00 | | $ | 0.00 | | $ | 0.00 | | $ | 0.00 | |
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PORTER BANCORP, INC. |
Unaudited Financial Information |
(in thousands, except share and per share data) |
| | | | | | | | | | | |
| | Three | | Three | | Three | | Six | | Six | |
| | Months | | Months | | Months | | Months | | Months | |
| | Ended | | Ended | | Ended | | Ended | | Ended | |
| | 6/30/16 | | 3/31/16 | | 6/30/15 | | 6/30/16 | | 6/30/15 | |
| | | | | | | | | | | |
Average Balance Sheet Data | | | | | | | | | | | | | | | | |
| Assets | | $ | 936,000 | | $ | 937,378 | | $ | 1,003,507 | | $ | 936,689 | | $ | 1,007,512 | |
| Loans | | | 619,253 | | | 620,077 | | | 641,587 | | | 619,665 | | | 642,269 | |
| Earning assets | | | 876,721 | | | 881,635 | | | 930,415 | | | 879,178 | | | 933,210 | |
| Deposits | | | 858,849 | | | 865,125 | | | 924,840 | | | 861,987 | | | 928,250 | |
| Long-term debt and advances | | | 27,649 | | | 28,033 | | | 33,208 | | | 27,841 | | | 33,553 | |
| Interest bearing liabilities | | | 766,712 | | | 779,438 | | | 846,892 | | | 773,075 | | | 850,637 | |
| Stockholders’ equity | | | 39,214 | | | 33,546 | | | 33,770 | | | 36,380 | | | 33,870 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.43 | % | | 0.64 | % | | (0.85) | % | | 0.54 | % | | (0.31) | % |
| Return on average equity | | | 10.38 | | | 17.74 | | | (25.30) | | | 13.78 | | | (9.15) | |
| Yield on average earning assets (tax equivalent) | | | 4.03 | | | 4.23 | | | 4.00 | | | 4.13 | | | 4.02 | |
| Cost of interest bearing liabilities | | | 0.79 | | | 0.79 | | | 0.87 | | | 0.79 | | | 0.89 | |
| Net interest margin (tax equivalent) | | | 3.34 | | | 3.53 | | | 3.21 | | | 3.44 | | | 3.21 | |
| Efficiency ratio | | | 95.06 | | | 91.54 | | | 126.75 | | | 93.25 | | | 118.80 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Loan Charge-off Data | | | | | | | | | | | | | | | | |
| Loans charged-off | | $ | (928 | ) | $ | (749 | ) | $ | (2,264 | ) | $ | (1,677 | ) | $ | (3,591 | ) |
| Recoveries | | | 292 | | | 598 | | | 476 | | | 890 | | | 1,036 | |
| Net charge-offs | | $ | (636 | ) | $ | (151 | ) | $ | (1,788 | ) | $ | (787 | ) | $ | (2,555 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Nonaccrual Loan Activity | | | | | | | | | | | | | | | | |
| Nonaccrual loans at beginning of period | | $ | 11,119 | | $ | 14,087 | | $ | 36,500 | | $ | 14,087 | | $ | 47,175 | |
| Net principal pay-downs | | | (731 | ) | | (2,712 | ) | | (5,336 | ) | | (3,443 | ) | | (16,090 | ) |
| Charge-offs | | | (344 | ) | | (644 | ) | | (2,082 | ) | | (988 | ) | | (3,037 | ) |
| Loans foreclosed and transferred to OREO | | | (135 | ) | | (441 | ) | | (608 | ) | | (576 | ) | | (945 | ) |
| Loans returned to accrual status | | | (265 | ) | | (84 | ) | | (620 | ) | | (349 | ) | | (698 | ) |
| Loans placed on nonaccrual during the period | | | 1,955 | | | 913 | | | 2,361 | | | 2,868 | | | 3,810 | |
| Nonaccrual loans at end of period | | $ | 11,599 | | $ | 11,119 | | $ | 30,215 | | $ | 11,599 | | $ | 30,215 | |
| | | | | | | | | | | | | | | | |
| Troubled Debt Restructurings (TDRs) | | | | | | | | | | | | | | | | |
| Accruing | | $ | 13,936 | | $ | 14,867 | | $ | 18,548 | | $ | 13,936 | | $ | 18,548 | |
| Nonaccrual | | | 3,453 | | | 3,479 | | | 15,006 | | | 3,453 | | | 15,006 | |
| Total | | $ | 17,389 | | $ | 18,346 | | $ | 33,554 | | $ | 17,389 | | $ | 33,554 | |
| | | | | | | | | | | | | | | | |
| Other Real Estate Owned (OREO) Activity (Net of Allowance) | | | | | | | | | | |
| OREO at beginning of period | | $ | 17,861 | | $ | 19,214 | | $ | 43,618 | | $ | 19,214 | | $ | 46,197 | |
| Real estate acquired | | | 135 | | | 441 | | | 608 | | | 576 | | | 955 | |
| Valuation adjustment write-downs | | | (150 | ) | | (500 | ) | | (2,330 | ) | | (650 | ) | | (2,630 | ) |
| Proceeds from sales of properties | | | (5,638 | ) | | (1,349 | ) | | (2,391 | ) | | (6,987 | ) | | (5,020 | ) |
| Gain (loss) on sales, net | | | 114 | | | 55 | | | 40 | | | 169 | | | 43 | |
| OREO at end of period | | $ | 12,322 | | $ | 17,861 | | $ | 39,545 | | $ | 12,322 | | $ | 39,545 | |
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| | | | |
| PORTER BANCORP, INC. |
| Unaudited Financial Information |
(in thousands, except share and per share data) |
| | | | |
| | | As of | |
| | | 6/30/16 | | 3/31/16 | | 12/31/15 | | | 9/30/15 | | | 6/30/15 | |
| | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
| Loans | | $ | 624,136 | | $ | 619,827 | | $ | 618,666 | | $ | 624,414 | | $ | 648,321 | |
| Allowance for loan losses | | | (10,104 | ) | | (11,340 | ) | | (12,041 | ) | | (14,198 | ) | | (16,809 | ) |
| Net loans | | | 614,032 | | | 608,487 | | | 606,625 | | | 610,216 | | | 631,512 | |
| Loans held for sale | | | — | | | 113 | | | 186 | | | 71 | | | 125 | |
| Securities held to maturity | | | 41,948 | | | 42,011 | | | 42,075 | | | 42,138 | | | 42,202 | |
| Securities available for sale | | | 143,145 | | | 141,525 | | | 144,978 | | | 146,837 | | | 151,758 | |
| Federal funds sold & interest bearing deposits | | | 49,313 | | | 72,209 | | | 85,329 | | | 73,940 | | | 63,987 | |
| Cash and due from financial institutions | | | 8,289 | | | 8,097 | | | 8,006 | | | 6,540 | | | 7,403 | |
| Premises and equipment | | | 18,618 | | | 18,751 | | | 18,812 | | | 19,109 | | | 19,167 | |
| Bank owned life insurance | | | 14,646 | | | 14,531 | | | 9,441 | | | 9,381 | | | 9,320 | |
| FHLB Stock | | | 7,323 | | | 7,323 | | | 7,323 | | | 7,323 | | | 7,323 | |
| Other real estate owned | | | 12,322 | | | 17,861 | | | 19,214 | | | 29,177 | | | 39,545 | |
| Accrued interest receivable and other assets | | | 6,916 | | | 7,251 | | | 6,733 | | | 6,748 | | | 6,998 | |
| Total Assets | | $ | 916,552 | | $ | 938,159 | | $ | 948,722 | | $ | 951,480 | | $ | 979,340 | |
| | | | | | | | | | | | | | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | |
| Certificates of deposit | | $ | 461,183 | | $ | 478,965 | | $ | 499,827 | | $ | 534,031 | | $ | 564,253 | |
| Interest checking | | | 90,806 | | | 96,465 | | | 97,515 | | | 83,247 | | | 84,627 | |
| Money market | | | 135,643 | | | 134,684 | | | 125,935 | | | 119,324 | | | 110,529 | |
| Savings | | | 34,616 | | | 35,197 | | | 34,677 | | | 35,131 | | | 35,942 | |
| Total interest bearing deposits | | | 722,248 | | | 745,311 | | | 757,954 | | | 771,733 | | | 795,351 | |
| Demand deposits | | | 117,843 | | | 120,302 | | | 120,043 | | | 106,160 | | | 108,800 | |
| Total deposits | | | 840,091 | | | 865,613 | | | 877,997 | | | 877,893 | | | 904,151 | |
| Federal funds purchased & repurchase agreements | | | — | | | — | | | — | | | — | | | 1,265 | |
| FHLB advances | | | 2,775 | | | 2,932 | | | 3,081 | | | 3,255 | | | 3,430 | |
| Junior subordinated debentures | | | 24,600 | | | 24,825 | | | 25,050 | | | 25,275 | | | 29,500 | |
| Accrued interest payable and other liabilities | | | 7,651 | | | 10,181 | | | 10,577 | | | 11,249 | | | 10,949 | |
| Total liabilities | | | 875,117 | | | 903,551 | | | 916,705 | | | 917,672 | | | 949,295 | |
| | | | | | | | | | | | | | | | |
| Preferred stockholders’ equity | | | 2,771 | | | 2,771 | | | 2,771 | | | 2,771 | | | 2,771 | |
| Common stockholders’ equity | | | 38,664 | | | 31,837 | | | 29,246 | | | 31,037 | | | 27,274 | |
| Total stockholders’ equity | | | 41,435 | | | 34,608 | | | 32,017 | | | 33,808 | | | 30,045 | |
| Total Liabilities and Stockholders’ Equity | | $ | 916,552 | | $ | 938,159 | | $ | 948,722 | | $ | 951,480 | | $ | 979,340 | |
| | | | | | | | | | | | | | | | |
| Ending shares outstanding | | | 31,118,302 | | | 26,944,177 | | | 26,947,533 | | | 26,949,205 | | | 25,759,223 | |
| Book value per common share | | $ | 1.24 | | $ | 1.18 | | $ | 1.09 | | $ | 1.15 | | $ | 1.06 | |
| Tangible book value per common share | | | 1.23 | | | 1.17 | | | 1.07 | | | 1.13 | | | 1.03 | |
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| | | | |
| PORTER BANCORP, INC. |
| Unaudited Financial Information |
| (in thousands, except share and per share data) |
| | | | |
| | | As of | |
| | | 6/30/16 | | | 3/31/16 | | | 12/31/15 | | | 9/30/15 | | | 6/30/15 | |
| Asset Quality Data | | | | | | | | | | | | | | | | |
| Loan 90 days or more past due still on accrual | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 92 | |
| Nonaccrual loans | | | 11,599 | | | 11,119 | | | 14,087 | | | 16,987 | | | 30,215 | |
| Total non-performing loans | | | 11,599 | | | 11,119 | | | 14,087 | | | 16,987 | | | 30,307 | |
| Real estate acquired through foreclosures | | | 12,322 | | | 17,861 | | | 19,214 | | | 29,177 | | | 39,545 | |
| Other repossessed assets | | | — | | | — | | | — | | | — | | | — | |
| Total non-performing assets | | $ | 23,921 | | $ | 28,980 | | $ | 33,301 | | $ | 46,164 | | $ | 69,852 | |
| | | | | | | | | | | | | | | | |
| Non-performing loans to total loans | | | 1.86 | % | | 1.79 | % | | 2.28 | % | | 2.72 | % | | 4.67 | % |
| Non-performing assets to total assets | | | 2.61 | | | 3.09 | | | 3.51 | | | 4.85 | | | 7.13 | |
| Allowance for loan losses to non-performing loans | | | 87.11 | | | 101.99 | | | 85.48 | | | 83.58 | | | 55.46 | |
| | | | | | | | | | | | | | | | |
| Allowance for loans evaluated individually | | $ | 146 | | $ | 464 | | $ | 428 | | $ | 469 | | $ | 842 | |
| Loans evaluated individually for impairment | | | 25,535 | | | 26,236 | | | 31,776 | | | 34,895 | | | 49,011 | |
| Allowance as % of loans evaluated individually | | | 0.57 | % | | 1.77 | % | | 1.35 | % | | 1.34 | % | | 1.72 | % |
| | | | | | | | | | | | | | | | |
| Allowance for loans evaluated collectively | | $ | 9,958 | | $ | 10,876 | | $ | 11,613 | | $ | 13,729 | | $ | 15,967 | |
| Loans evaluated collectively for impairment | | | 598,601 | | | 593,591 | | | 586,890 | | | 589,519 | | | 599,310 | |
| Allowance as % of loans evaluated collectively | | | 1.66 | % | | 1.83 | % | | 1.98 | % | | 2.33 | % | | 2.66 | % |
| | | | | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | 1.62 | % | | 1.83 | % | | 1.95 | % | | 2.27 | % | | 2.59 | % |
| | | | | | | | | | | | | | | | |
| Loans by Risk Category | | | | | | | | | | | | | | | | |
| Pass | | $ | 547,853 | | $ | 534,451 | | $ | 517,484 | | $ | 508,470 | | $ | 509,843 | |
| Watch | | | 50,024 | | | 59,265 | | | 63,363 | | | 66,726 | | | 67,712 | |
| Special Mention | | | 622 | | | 1,383 | | | 1,395 | | | 1,700 | | | 1,718 | |
| Substandard | | | 25,637 | | | 24,728 | | | 36,424 | | | 47,518 | | | 69,048 | |
| Doubtful | | | — | | | — | | | — | | | — | | | — | |
| Total | | $ | 624,136 | | $ | 619,827 | | $ | 618,666 | | $ | 624,414 | | $ | 648,321 | |
| | | | | | | | | | | | | | | | |
| Risk-based Capital Ratios - Company | | | | | | | | | | | | | | | | |
| Tier I leverage ratio | | | 5.87 | % | | 5.03 | % | | 4.74 | % | | 4.73 | % | | 4.25 | % |
| Common equity Tier I risk-based capital ratio | | | 6.11 | | | 5.21 | | | 5.09 | | | 5.07 | | | 4.42 | |
| Tier I risk-based capital ratio | | | 8.16 | | | 7.03 | | | 6.89 | | | 6.86 | | | 6.02 | |
| Total risk-based capital ratio | | | 11.31 | | | 10.46 | | | 10.46 | | | 10.40 | | | 10.25 | |
| | | | | | | | | | | | | | | | |
| Risk-based Capital Ratios – PBI Bank | | | | | | | | | | | | | | | | |
| Tier I leverage ratio | | | 6.65 | % | | 6.39 | % | | 6.08 | % | | 6.01 | % | | 5.95 | % |
| Common equity Tier I risk-based capital ratio | | | 9.22 | | | 8.94 | | | 8.84 | | | 8.73 | | | 8.43 | |
| Tier I risk-based capital ratio | | | 9.22 | | | 8.94 | | | 8.84 | | | 8.73 | | | 8.43 | |
| Total risk-based capital ratio | | | 10.87 | | | 10.64 | | | 10.58 | | | 10.50 | | | 10.34 | |
| | | | | | | | | | | | | | | | |
| FTE employees | | | 239 | | | 246 | | | 244 | | | 246 | | | 253 | |
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CONTACT:
Porter Bancorp, Inc.
John T. Taylor, 502-499-4800
Chief Executive Officer
