Porter Bancorp, Inc. Announces Fourth Quarter 2011 Loss Related To Establishment Of Deferred Tax Asset Valuation Allowance And Credit Losses
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with
18 full-service banking offices in Kentucky, today reported unaudited
results for the fourth quarter and year ended December 31, 2011.
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported unaudited results for the fourth quarter and year ended December 31, 2011. The Company reported a net loss to common shareholders of $45.4 million, or $(3.88) per diluted share, for the fourth quarter of 2011. Net loss to common shareholders for the year ended December 31, 2011, was $96.2 million, or $(8.21) per fully diluted common share. “Porter Bancorp’s fourth quarter loss was due primarily to the establishment of a 100% valuation allowance for our $28.5 million deferred tax asset, $27.0 million provision for loan losses, and $4.2 million write-down of other real estate owned (OREO),” stated Maria L. Bouvette, President and Chief Executive Officer. Non-performing loans increased to $68.9 million, or 6.04% of total loans, at December 31, 2011, compared with $59.8 million, or 4.96% of total loans, at September 30, 2011. Non-performing assets increased to $110.3 million, or 7.53% of total assets, compared with $104.7 million, or 6.64% of total assets, at September 30, 2011. Foreclosed properties at December 31, 2011, declined to $41.4 million compared with $67.6 million at December 31, 2010, and $44.9 million at September 30, 2011. Our ratio of non-performing assets to total assets increased to 7.53% at December 31, 2011, compared with 7.43% at December 31, 2010. “During the fourth quarter, we continued to explore opportunities to bulk sell a package of OREO. In January 2012, we were successful in selling real estate owned of approximately $4.6 million. We remain focused on aggressively reducing our nonperforming assets in light of the sluggish economic recovery, continued weakness in local real estate activities, and declining values of real estate in certain market sectors. We believe this strategic focus will be key to improving our nonperforming asset ratios and our long term profitability,” concluded Ms. Bouvette.