Porter Bancorp, Inc. Announces Third Quarter 2010 Results
“We also strengthened our capital position this year with capital raises totaling $32 million. At the end of the third quarter, our total risk-based capital ratio rose to 16.35%, well above the 10.0% requirement for a well-capitalized institution, the highest regulatory rating. We believe the new capital will provide a solid base to support our continued growth as the economy recovers,” continued Ms. Bouvette.
Third Quarter Results
- Net income was $2.4 million for the three months ended September 30, 2010, compared with $4.5 million for the third quarter of 2009. Earnings per fully diluted common share were $0.16 in the third quarter of 2010 compared with $0.46 per share in the third quarter of 2009.
- Net interest margin increased 14 basis points to 3.73% in the third quarter of 2010 compared with 3.59% in the third quarter of 2009. The increase in margin since last year benefited from a lower average cost of funds.
- We recorded a gain on sale of securities totaling $2.2 million during the third quarter. We made a strategic decision to liquidate our portfolio of private label mortgage backed securities during the quarter which totaled approximately $23 million.
- Average loans decreased 2.5% to $1.34 billion in the third quarter of 2010 compared with $1.37 billion in the third quarter of 2009. Net loans decreased 4.8% to $1.30 billion in the third quarter of 2010, compared with $1.37 billion at September 30, 2009.
- Deposits increased 0.8% to $1.39 billion compared with $1.38 billion at September 30, 2009.
- Total assets increased 3.0% to $1.78 billion compared with $1.73 billion at September 30, 2009.
- Efficiency ratio was 60.9% in the third quarter of 2010, compared with 47.1% in the prior year third quarter. Our efficiency ratio increased due to an increase in non-interest expense.
- Non-performing loans decreased $2.9 million, or 5.9%, during the third quarter to $45.8 million at September 30, 2010, compared with $48.7 million at June 30, 2010. The decrease was primarily attributable to non-performing loans moving through the collection, foreclosure and disposition process.
- Non-performing assets increased $2.3 million, or 2.0%, during the third quarter to $119.5 million at September 30, 2010. The increase was primarily attributable to non-performing loans moving through the collection, foreclosure and disposition process.
- Shareholders’ equity rose to $202.6 million at the end of the third quarter. The increase was primarily attributable to an additional $5 million capital raise that closed during the third quarter. The proceeds from the offering and third quarter net income resulted in improved capital ratios, including 11.71% tier 1 leverage ratio and 14.44% tier 1 risk-based capital ratio as of September 30, 2010.
Net Interest Income
Net interest income increased 1.4% to $14.6 million for the three months ended September 30, 2010, an increase of $202,000, compared with $14.4 million for the same period in 2009. Net interest income rose 11.0% to $43.5 million for the nine months ended September 30, 2010, an increase of $4.3 million, compared with $39.2 million for the same period in 2009. The increase in net interest income was primarily attributable to an increase in net interest margin compared with 2009.
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