Porter Bancorp, Inc. Announces Fourth Quarter And 2010 Results
Fourth Quarter Results
- Net loss available to common shareholders was $9.0 million for the three months ended December 31, 2010, compared with a net loss of $256,000 for the fourth quarter of 2009. Net loss per fully diluted common share was $(0.77) in the fourth quarter of 2010 compared with $(0.03) per share in the fourth quarter of 2009.
- Net interest margin increased 3 basis points to 3.60% in the fourth quarter of 2010 compared with 3.57% in the fourth 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 $2.9 million during the fourth quarter. We made a strategic decision to liquidate certain mortgage backed securities and corporate bonds during the quarter.
- Average loans decreased 5.5% to $1.32 billion in the fourth quarter of 2010 compared with $1.39 billion in the fourth quarter of 2009. Net loans decreased 8.5% to $1.27 billion in the fourth quarter of 2010, compared with $1.39 billion at December 31, 2009. The decrease in loans is due to a slowdown in new loan originations in certain markets, loan charge-offs and transfers to OREO.
- Deposits decreased 4.1% to $1.47 billion compared with $1.53 billion at December 31, 2009. The decrease in deposits follows management’s strategy to match liability funding levels with lower loan balances.
- Total assets decreased 6.1% to $1.72 billion compared with $1.84 billion at December 31, 2009.
- Efficiency ratio was 107.5% in the fourth quarter of 2010, compared with 44.4% in the prior year fourth quarter. Our efficiency ratio increased due to higher non-interest expense, primarily OREO expense. Despite the higher credit-related costs, the Company continues to control its discretionary expenses.
- Non-performing loans increased $14.6 million, or 31.8%, during the fourth quarter to $60.4 million at December 31, 2010, compared with $45.8 million at September 30, 2010. The increase was primarily in the construction and land development segment of our business.
- Non-performing assets increased $8.6 million, or 7.2%, during the fourth quarter to $128.1 million at December 31, 2010, from $119.5 million at September 30, 2010. The increase was primarily attributable to non-performing loans moving through the collection, foreclosure and disposition process.
Net Interest Income
Net interest income decreased 5.5% to $14.1 million for the three months ended December 31, 2010, a decrease of $814,000, compared with $14.9 million for the same period in 2009. The decrease in net interest income was primarily attributable to lower average interest earning assets coupled with the impact of non-accrual loan levels. Net interest income rose 6.5% to $57.6 million for the year ended December 31, 2010, an increase of $3.5 million, compared with $54.1 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.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.