EXHIBIT 99.1
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NEWS FOR IMMEDIATE RELEASE CONTACT: BRIEN M. CHASE, CFO
APRIL 28, 2003 (304) 525-1600
PREMIER FINANCIAL BANCORP, INC.
REPORTS FIRST QUARTER 2003 EARNINGS
PREMIER FINANCIAL BANCORP, INC. (PREMIER), HUNTINGTON, WEST VIRGINIA
(NASDAQ/NMS-PFBI), a $683 million community bank holding company with seven
individually managed bank subsidiaries announced positive earnings results for
the second consecutive quarter. Premier realized net income of $353,000 (7 cents
per share) during the quarter ending March 31, 2003 while continuing with its
significant provisions for loan losses. The net income for the first quarter
compares to $644,000 (12 cents per share) of net income reported for the first
quarter of 2002 and $355,000 (7 cents per share) during the prior calendar
quarter.
President and CEO, Robert W. Walker commented, "We are pleased to report our
second consecutive quarter of net income. While this performance is certainly
only a fraction of what we believe this company to be capable of, we are
encouraged that the necessary steps we have taken to improve asset quality,
identify problem credits, and reduce debt are beginning to produce tangible
results."
Net interest income for the quarter ending March 31, 2003 totaled $5.981
million, compared to $5.974 million of net interest income earned in the first
quarter of 2002 and $6.120 million earned in the prior calendar quarter. Net
interest income has remained relatively stable from quarter to quarter as
declines in loan balances and investment yields have been offset by declines in
interest bearing liabilities and funding costs.
During the quarter ending March 31, 2003, Premier made provisions to the
allowance for loan losses of $1,397,000 compared to $986,000 during the same
period of 2002 and $1,516,000 in the prior calendar quarter. As a result, the
allowance for loan losses at March 31, 2003 was 2.76% of total loans compared to
2.61% of total loans at year-end 2002 and 1.93% of total loans at March 31,
2002.
Net overhead for the quarter ending March 31, 2003 totaled $4.291, which
included $124,000 of expenses related to the early redemption of $3.0 million of
Premier Trust Preferred Securities (NASDAQ/NMS-PFBIP). This compares to $4.128
million in the first quarter of 2002 and $4.165 million in the prior calendar
quarter.
Total assets as of March 31, 2003 of $683 million were 0.8% greater than the
$678 million of total assets at year-end, largely due to an $8.2 million
increase in total deposits partially offset by a $3.0 million early redemption
of Premier's 9.75% Trust Preferred Securities. Shareholders' equity of $59.4
million equaled 8.7% of total assets at March 31, 2003. This compares to
shareholders' equity of$59.4 million or 8.8% of total assets at December 31,
2002.
Following is a summary of the financial highlights for Premier as of and for the
period ending March 31, 2003.
PREMIER FINANCIAL BANCORP, INC.
Financial Highlights
Dollars in Thousands (except per share data)
For the Quarter Ended
March 31 March 31
2003 2002
Interest Income 9,993 11,546
Interest Expense 4,012 5,572
Net Interest Income 5,981 5,974
Provision for Loan Losses 1,397 986
Net Interest Income after Provision 4,584 4,988
Non-Interest Income 936 814
Securities Transactions 189 44
Non-Interest Expenses 5,227 4,942
Net Income Before Taxes 482 904
Income Taxes 129 260
NET INCOME 353 644
EARNINGS PER SHARE 0.07 0.12
Balances as of
March 31 December 31
2003 2002
Cash/Due From Banks/Fed Funds 72,413 47,871
Securities Available for Sale 155,078 157,633
Loans (net) 409,361 423,777
Other Real Estate Owned 3,094 3,939
Other Assets 27,342 28,364
Goodwill 16,044 16,044
TOTAL ASSETS 683,332 677,628
LIABILITIES
Deposits 556,134 547,974
Other Liabilities 42,025 41,538
Trust Preferred Certificates 25,750 28,750
TOTAL LIABILITIES 623,909 618,262
Stockholders' Equity 59,423 59,366
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY 683,332 677,628
TOTAL BOOK VALUE PER SHARE 11.36 11.35
Non-Accrual Loans 8,974 10,588
Loans 90 Days Past Due and Still Accruing 1,542 1,399