Exhibit 99.1
Provident Community Bancshares Reports Earnings For the Three and Twelve Months Ended December 31, 2007
ROCK HILL, S.C.--(BUSINESS WIRE)--Provident Community Bancshares, Inc. (NASDAQ GM: PCBS) (the “Corporation”) reported operating results for the three and twelve months ended December 31, 2007. Net income for the fourth quarter of 2007 was $212,000 compared to $814,000 for the fourth quarter of 2006. Earnings per share were $0.12 per share (diluted) for the fourth quarter of 2007, versus $0.44 per share (diluted) for the fourth quarter of 2006. Net income for the twelve months ended December 31, 2007, was $2.2 million, or $1.18 per share (diluted), compared to $2.8 million, or $1.48 per share (diluted), for 2006. The decrease in net income for the periods primarily reflected an increase in the provision for loan losses due to loan growth and the increase in nonperforming assets.
At December 31, 2007, assets totaled $407.6 million, a 5.2% increase from $387.6 million at December 31, 2006. The increase in assets reflected an increase in loans, primarily higher-yielding commercial and consumer loans, offset by a decrease in lower-yielding investments and mortgage-backed securities. Growth in lower cost transaction accounts and time deposits resulted in an increase in deposits and a decrease in FHLB borrowings.
Dwight V. Neese, President and CEO, said “We are pleased with the balance sheet structure and growth that we achieved in 2007. Loans have increased approximately 11% since December 31, 2006, enabling our company to exceed $400 million in total assets. In addition, we increased our deposit base by approximately 9%. Our three new banking center locations established in the previous year required a significant capital investment, but played a major role in our deposit growth of $22 million. While the year 2008 will present many challenges for the banking industry, we plan to focus our attention on core operations with the goal of enhancing long-term value for our shareholders.”
Nonperforming assets were $3.8 million as of December 31, 2007, or 0.93% of total assets, as compared to $1.4 million at December 31, 2006, an increase of $2.3 million. The majority of this increase relates to two loan relationships that also existed at December 31, 2006. Management has allocated specific reserves to these and other non accrual loans that it believes will offset losses, if any, arising from less than full recovery of the loans from the supporting collateral.
The Corporation also declared a quarterly cash dividend of $0.115 per share payable on February 15, 2008 to shareholders of record on January 30, 2008. Provident Community Bancshares, Inc. has a dividend reinvestment plan and information about the plan can be obtained from Registrar and Transfer Company at 800-368-5948.
COMPANY HIGHLIGHTS
Provident Community Bancshares is the holding company for Provident Community Bank, N.A., which operates nine community oriented banking centers in the upstate of South Carolina that offer a full array of financial services. The $407 million holding company is headquartered in Rock Hill, South Carolina and its common stock is traded on the NASDAQ Global Market under the symbol PCBS. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com.
FORWARD-LOOKING STATEMENTS
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risk and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. The Corporation does not assume any duty and does not undertake to update its forward-looking statements. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation’s actual results, see the Corporation’s Annual Report in Form 10-K for the year ended December 31, 2006, including in the Risk Factors section of that report.
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the three and twelve months ended December 31, 2007, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.
Financial Highlights
(Unaudited) ($ in thousands, except per share data) | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
Income Statement Data | 2007 | 2006 | 2007 | 2006 | ||||
Net interest income | $2,599 | $2,637 | $10,795 | $10,524 | ||||
Provision for loan losses | 801 | 115 | 1,066 | 470 | ||||
Net interest income after loan loss provision | 1,798 | 2,522 | 9,729 | 10,054 | ||||
Non-interest income | 845 | 743 | 3,162 | 2,876 | ||||
Non-interest expense | 2,510 | 2,324 | 10,167 | 9,178 | ||||
Income tax | (79 | ) | 127 | 534 | 949 | |||
Net income | $212 | $814 | $2,190 | $2,803 | ||||
Earnings per share: basic | $0.12 | $0.44 | $1.20 | $1.50 | ||||
Earnings per share: diluted | $0.12 | $0.44 | $1.18 | $1.48 | ||||
Weighted Average Number of Common Shares Outstanding | ||||||||
Basic | 1,795,578 | 1,834,261 | 1,820,666 | 1,865,951 | ||||
Diluted | 1,829,345 | 1,867,603 | 1,858,255 | 1,893,203 | ||||
Cash dividends per share | $0.115 | $0.110 | $0.455 | $0.430 |
Balance Sheet Data | At 12/31/07 | At 12/31/06 | ||
Total assets | $407,641 | $387,630 | ||
Cash and due from banks | 11,890 | 9,124 | ||
Investment securities | 111,187 | 122,185 | ||
Loans | 259,831 | 234,640 | ||
Allowance for loan losses | 3,344 | 2,754 | ||
Deposits | 270,399 | 248,440 | ||
FHLB advances and other borrowings | 93,631 | 98,533 | ||
Junior subordinated debentures | 12,372 | 12,372 | ||
Shareholders’ equity | 27,313 | 25,967 | ||
Common shares outstanding | 1,794,866 | 1,830,528 | ||
Book value per share | $15.22 | $14.19 | ||
Equity to average assets | 6.72% | 6.92% | ||
Total loans to deposits | 96.09% | 94.45% | ||
Allowance for loan losses to total loans | 1.29% | 1.17% | ||
Asset Quality | ||||
Nonperforming loans | 2,927 | 1,295 | ||
Other real estate owned | 856 | 148 | ||
Total nonperforming assets | 3,783 | 1,443 | ||
Net loan charge-offs | 476 | 110 |
CONTACT:
Provident Community Bancshares, Inc.
Dwight V. Neese, 803-980-1863