Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported results for the third quarter and nine months ended September 30, 2010.
The Company reported net income of $2.4 million for the third quarter of 2010 compared with net income of $4.5 million for the third quarter of 2009. Net income available to common shareholders was $1.8 million, or $0.16 per fully diluted common share, for the third quarter of 2010, compared with net income of $4.1 million, or $0.46 per fully diluted common share, for the third quarter of 2009. Net income for the nine months ended September 30, 2010 was $4.5 million compared with $10.8 million for the first nine months of 2009. Net income available to common shareholders for the nine months ended September 30, 2010 was $3.0 million, or $0.31 per fully diluted common share, compared with $9.4 million, or $1.08 per fully diluted common share, for comparable period of 2009.
“Porter Bancorp reported growth in net interest income, net interest margin and non-interest income compared with the third quarter of last year,” stated Maria L. Bouvette, President and CEO of Porter Bancorp. “The growth in our core business remains below our historical returns due to the continued weakness in the economy and the associated higher costs of non-performing loans, foreclosed properties and provision for loan losses.
“Our focus remains on strengthening our balance sheet by reducing problem loans and building our capital base,” noted Ms. Bouvette. “Total non-performing loans are down 46% since December 31, 2009, to $45.8 million, the lowest level in the past year and our third consecutive quarterly decline in non-performing loans. We continue to move non-performing loans through the system of collection or foreclosure to minimize our potential losses, which is reflected in the higher balance of OREO since last year. We strengthened our allowance for loan losses to $29.4 million or 2.21% of total loans.