Exhibit 99.1
Provident Community Bancshares, Inc. Reports Earnings and Announces
Increase in Quarterly Cash Dividend
ROCK HILL, S.C.--(BUSINESS WIRE)--April 25, 2007--Provident
Community Bancshares, Inc. (NASDAQ: PCBS) reported net income for the
quarter ended March 31, 2007 of $649,000 compared to $699,000 for the
three months ended March 31, 2006. Earnings per share were $0.35 per
share (diluted) for the first quarter of 2007 versus $0.36 per share
(diluted) for the first quarter of 2006. The decrease in earnings from
the prior year quarter reflects the additional expenses associated
with opening three banking centers in the previous twelve months.
Net interest income before the loan loss provision for the first
quarter increased $80,000, or 3.0%, to $2.7 million compared to $2.6
million. The increase reflects higher average loan balances along with
an increase in the yield on loans that resulted from a higher
concentration of consumer and commercial loans offset by higher
funding costs over the previous year period as a result of an increase
in balances and rising rates. The provision for loan losses for the
first quarter totaled $160,000 compared to $175,000 for the same
period in the previous year. The decrease in provision for loan losses
was due to a reduction in classified loans offset by a 17.5% increase
in net loans over the previous year and a higher concentration of
commercial loans in the portfolio which carry a higher risk of
default.
Non-interest income for the first quarter increased $37,000, or
5.4%, to $723,000 compared to $686,000 for the same period in the
previous year. The increase was due to higher fees for financial
services that resulted from an increase in transaction accounts.
Non-interest expense for the first quarter increased $253,000, or
11.6%, to $2.4 million compared to $2.2 million for the same period in
the previous year. The increase was due primarily to higher operating
costs associated with banking centers opened in Simpsonville, South
Carolina and Rock Hill, South Carolina during the previous twelve
months.
At March 31, 2007, assets totaled $396.8 million, a 2.4% increase
from $387.6 million at December 31, 2006. Net loans receivable
increased $5.0 million, or 2.2%, during the period to $236.9 million
at March 31, 2007, compared to $231.9 million at December 31, 2006.
The net growth in loans was driven by a $8.8 million increase in the
commercial loan portfolio as the Company continued to focus on this
lending segment with specialized loan officers and products.
Reductions in lower- yielding investments and mortgage-backed
securities and deposit growth of $16.0 million was used to fund the
increase in loans and paydown borrowings. Shareholders= equity
increased $576,000, or 2.2%, to $26.5 million at March 31, 2007 from
$25.9 million at December 31, 2006 due primarily to net income of
$649,000 and a $187,000 decrease in unrealized losses on securities
available for sale, offset by the repurchase of 5,061 shares at a cost
of $100,000 and dividend payments of $0.11 per share at a cost of
$200,000.
The Company also announced a 4.5% increase in the quarterly cash
dividend from $0.11 to $0.115 per share payable on May 15, 2007 to
shareholders of record on April 30, 2007. Provident Community
Bancshares, Inc. has a dividend reinvestment plan and information
about the plan can be obtained from Registrar and Transfer Company at
800-368-5948.
Provident Community Bancshares is the parent company for Provident
Community Bank, N.A., which operates ten community oriented banking
centers in the upstate of South Carolina that offer a full array of
financial services. Please visit our website at
www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder
Relations Officer at wwells@providentonline.com or Richard H. Flake,
EVP/CFO at rflake@providentonline.com.
Certain matters set forth in this news release may contain
forward-looking statements that are provided to assist in the
understanding of anticipated future financial performance. However,
such performance involves risks and uncertainties that may cause
actual results to differ materially from those in such statements. For
a discussion of certain factors that may cause such forward-looking
statements to differ materially from the Corporation=s actual results,
see the Corporation=s Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2006, June 30, 2006, and September 30, 2006 and the
Corporation=s Annual Report in Form 10-K for the year ended December
31, 2006.
- ---------------------------------------- ---------- -------- ---------
Provident Community Bancshares, Inc.
First Quarter - Year Ending December 31, 2007
- ----------------------------------------------------------------------
Financial Highlights
(Unaudited) ($ in thousands, except share data)
At At
Balance Sheet 3/31/07 12/31/06 $Change % Change
- ----------------------------- ---------- ---------- -------- ---------
Total assets $396,831 $387,630 $9,201 2.37%
Cash and due from banks 12,153 9,124 3,029 33.20%
Investments & mortgage-
backed securities 121,209 122,185 -976 -0.80%
Loans receivable (net) 236,926 231,886 5,040 2.17%
Goodwill and intangible
assets 3,582 3,741 -159 -4.25%
Deposits 264,417 248,440 15,977 6.43%
Advances and other
borrowings 91,196 98,533 -7,337 -7.45%
Stockholders' equity 26,543 25,967 576 2.22%
Outstanding shares 1,826,844 1,830,528 -3,684 -0.20%
Book value per share $14.53 $14.19 $0.34 2.42%
Three Months Ended
March 31,
----------------------------------------
Income Statement 2007 2006 $Change % Change
- ----------------------------- ---------- ---------- -------- ---------
Net interest income $2,734 $2,654 $80 3.01%
Provision for loan losses 160 175 -15 -8.57%
---------- ---------- -------- ---------
Net interest income after
loan loss provision 2,574 2,479 95 3.83%
Non-interest income 723 686 37 5.39%
Non-interest expense 2,439 2,186 253 11.57%
Income tax 209 280 -71 -25.36%
---------- ---------- -------- ---------
Net income $649 $699 -$50 -7.15%
========== ========== ======== =========
Earnings per share: basic $0.36 $0.37 -$0.01 -2.70%
========== ========== ======== =========
Earnings per share: diluted $0.35 $0.36 -$0.01 -2.78%
========== ========== ======== =========
Weighted Average Number of
Common Shares Outstanding
Basic 1,827,373 1,896,210
Diluted 1,862,194 1,917,866
Three Months
Ended
March 31,
------------
Key Financial Ratios 2007 2006
---------------------------------------------------- ----- ------
Return on average assets 0.66% 0.75%
Return on average stockholders' equity 9.89% 11.10%
Operating expense to average assets 2.31% 2.19%
Equity to average assets 6.73% 6.70%
CONTACT: Provident Community Bancshares, Inc.
Dwight V. Neese, 803-980-1863
President & CEO
dneese@providentonline.com