Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported unaudited results for the first quarter of 2012. The Company also announced that it filed its first quarter 10-Q with the Securities and Exchange Commission.
The Company reported growth in net income available to common shareholders of $985,000, or $0.08 per diluted share, for the first quarter of 2012 compared with $305,000, or $0.03 per diluted share, for the first quarter of 2011.
The increase in net income was primarily attributable to the gain on sale of investment securities in the first quarter of 2012 which totaled $2.0 million compared with $83,000 in the first quarter of 2011 and a decrease in our provision for loan losses in the first quarter of 2012 which totaled $3.8 million compared to $5.1 million in the first quarter of 2011. Those improvements were partially offset by lower net interest income in the first quarter of 2012 compared with the first quarter of 2011.
Non-performing loans increased to $98.0 million, or 8.92% of total loans, at March 31, 2012, compared with $93.4 million, or 8.22% of total loans, at December 31, 2011. Non-performing assets decreased on a dollar basis to $133.5 million, or 9.61% of total assets, compared with $134.8 million, or 9.26% of total assets, at December 31, 2011.Foreclosed properties at March 31, 2012 declined to $35.6 million compared with $41.4 million at December 31, 2011, and $73.9 million at March 31, 2011. The Company sold $9.6 million in other real estate owned during the first quarter of 2012. Our ratio of non-performing assets to total assets increased to 9.61% at March 31, 2012, compared with 8.28% at March 31, 2011. At March 31, 2012, PBI Bank’s Tier 1 leverage ratio was 7.07% and its Total risk-based capital ratio was 11.38%, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order. At March 31, 2012, Porter Bancorp’s leverage ratio was 7.30%, compared with 6.53% at December 31, 2011, and its Total risk based capital ratio was 11.68% compared with 11.22% at December 31, 2011. We are continuing our efforts to strengthen our capital levels and comply with the Consent Order.