Exhibit 99.1
Provident Community Bancshares, Inc. Announces Second Quarter Earnings
ROCK HILL, S.C.--(BUSINESS WIRE)--July 17, 2007--Provident
Community Bancshares, Inc. (NASDAQ:PCBS) reported operating results
for the three and six months ended June 30, 2007. Net income for the
second quarter of 2007 was $601,000 compared to $639,000 for the
second quarter of 2006, a 5.9% decrease. Earnings per share were $0.32
per share (diluted) for the second quarter of 2007, versus $0.33 per
share (diluted) for the second 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. During the quarter, the Company announced the closing of one
banking center located in Winnsboro, South Carolina and incurred
certain expenses related to real estate write downs. The closing will
be completed during the third quarter of 2007. Net income for the six
months ended June 30, 2007, was $1.2 million, or $0.67 per share
(diluted), a 6.6% decrease from the $1.3 million, or $0.70 per share
(diluted), for the same period in 2006.
Net interest income before the loan loss provision for the second
quarter increased $66,000, or 2.5%, to $2.7 million compared to $2.7
million for the same period in the previous year. The increase was due
primarily to higher average loan balances over the previous year along
with an increase in the yield on loans that resulted from a higher
concentration of consumer and commercial loans. The increase in
interest income was partially offset by higher deposit costs as a
result of an increase in balances and rising rates. The provision for
loan losses for the second quarter totaled $85,000 compared to
$135,000 for the same period in the previous year. The decrease in
provision for loan losses was due to a $1.1 million reduction in
classified loans to $6.0 million compared to $7.1 million for the same
period in the previous year, offset by a 10.1% 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 second quarter increased $85,000, or
11.7%, to $812,000 compared to $727,000 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 second quarter increased $338,000, or
14.2%, to $2.7 million compared to $2.4 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 along with expenses incurred in relation to the pending closing
of one Winnsboro, South Carolina banking center.
At June 30, 2007, assets totaled $389.7 million, a 0.5% increase
from $387.6 million at December 31, 2006. Net loans receivable
increased $4.8 million, or 2.1%, during the period to $236.7 million
at June 30, 2007, compared to $231.9 million at December 31, 2006.
Consumer/commercial loans increased $8.7 million, offset by a $4.2
million reduction in residential mortgage loans as the Company
continues to focus on the consumer/commercial segments with
specialized loan officers and products. Growth in lower cost
transaction accounts and time deposits resulted in deposits increasing
4.1% to $258.6 million at June 30, 2007 compared to $248.4 million at
December 31, 2006. Reductions in lower yielding investments and
mortgage-backed securities of $8.5 million and the increase in
deposits funded the increase in loans and a reduction in borrowings of
$9.2 million. Shareholders' equity decreased $27,000, or 0.1%, to
$25,940,000 at June 30, 2007 from $25,967,000 at December 31, 2006 due
to the repurchase of 30,285 shares at a cost of $631,000, dividend
payments of $0.215 per share at a cost of $411,000 and a $315,000
increase in unrealized losses on securities available for sale, offset
by net income of $1,250,000.
The Company also declared a quarterly cash dividend of $0.115 per
share payable on August 15, 2007 to shareholders of record on July 30,
2007. Provident Community Bancshares, Inc. has a dividend reinvestment
plan and information about the plan can be obtained from Registrar and
Transfer Company at 800-368-5948.
Provident Community Bancshares is the parent company for Provident
Community Bank, N.A., which operates ten community oriented banking
centers in the upstate of South Carolina that offer a full array of
financial services. Please visit our website at
www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder
Relations Officer at wwells@providentonline.com or Richard H. Flake,
EVP/CFO at rflake@providentonline.com.
Certain matters set forth in this news release may contain
forward-looking statements that are provided to assist in the
understanding of anticipated future financial performance.
Forward-looking statements are typically identified by words such as
"believe," "expect," "anticipate," "intend," "outlook," "estimate,"
"forecast," "project" and other similar words and expressions.
Forward-looking statements are subject to numerous assumptions, risk
and uncertainties, which change over time. Forward-looking statements
speak only as of the date they are made. The Corporation does not
assume any duty and does not undertake to update its forward-looking
statements. However, such performance involves risks and uncertainties
that may cause actual results to differ materially from those in such
statements. For a discussion of certain factors that may cause such
forward-looking statements to differ materially from the Corporation's
actual results, see the Corporation's Annual Report in Form 10-K for
the year ended December 31, 2006, including in the Risk Factors
section of that report.
Provident Community Bancshares, Inc.
Second Quarter - Year Ending December 31, 2007
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Financial Highlights
(Unaudited) ($ in thousands, except share data)
At At
Balance Sheet 6/30/07 12/31/06 $Change % Change
- ---------------------------- ---------- ---------- --------- ---------
Total assets $ 389,673 $ 387,630 2,043 0.53%
Cash and due from banks 12,235 9,124 3,111 34.10%
Investments & mortgage-
backed securities 113,674 122,185 (8,511) -6.97%
Loans receivable (net) 236,697 231,886 4,811 2.07%
Goodwill and intangible
assets 3,469 3,741 (272) -7.27%
Deposits 258,625 248,440 10,185 4.10%
Advances and other
borrowings 89,308 98,533 (9,225) -9.36%
Stockholders' equity 25,940 25,967 (27) -0.10%
Outstanding shares 1,803,866 1,830,528 (26,662) -1.46%
Book value per share $ 14.38 $ 14.19 0 1.37%
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
Income Statement 2007 2006 2007 2006
- ------------------------------------- ---------- ---------- ----------
Net interest income $ 2,747 $ 2,681 $ 5,481 $ 5,335
Provision for loan
losses 85 135 245 310
---------- ---------- ---------- ----------
Net interest income
after loan loss
provision 2,662 2,546 5,236 5,025
Non-interest income 812 727 1,535 1,413
Non-interest expense 2,711 2,373 5,151 4,560
Income tax 162 261 370 540
---------- ---------- ---------- ----------
Net income $ 601 $ 639 $ 1,250 $ 1,338
========== ========== ========== ==========
Earnings per share:
basic $ 0.33 $ 0.34 $ 0.69 $ 0.71
========== ========== ========== ==========
Earnings per share:
diluted $ 0.32 $ 0.33 $ 0.67 $ 0.70
========== ========== ========== ==========
Weighted Average Number
of Common Shares
Outstanding
Basic 1,819,761 1,887,582 1,823,546 1,891,873
Diluted 1,857,730 1,911,663 1,859,950 1,914,748
Six Months
Ended
June 30,
------------
Key Financial Ratios 2007 2006
-------------------------------------------------------- ----- ------
Return on average assets 0.64% 0.72%
Return on average stockholders' equity 9.48% 10.72%
Operating expense to average assets 2.48% 2.27%
Equity to average assets 6.71% 6.69%
CONTACT: Provident Community Bancshares, Inc.
Dwight V. Neese, 803-980-1863
President & CEO
dneese@providentonline.com