HUNTINGTON, W.Va., July 30, 2020 /PRNewswire/ -- PREMIER
FINANCIAL BANCORP, INC. (PREMIER) (NASDAQ/GMS-PFBI), a
$1.9 billion financial holding
company with two community bank subsidiaries, announced its
financial results for the second quarter of 2020. Premier
realized net income of $5,506,000
(37 cents per diluted share) during
the quarter ended June 30, 2020, a
6.0% decrease from the $5,859,000 of
net income reported for the second quarter of 2019. The
decrease in net income in the second quarter of 2020 is largely due
to a decrease in interest income on investments and other liquid
assets, a decrease in non-interest income, and an increase in
provision for loan losses, all of which more than offset a decrease
in interest expense and an increase in interest income on
loans. A majority of these changes were largely in response
to changes in the economy related to the novel corona virus
("COVID-19"), whether such changes were a result of governmental
stimulus to depositors and borrowers, Federal Reserve Board of
Governors' changes in interest rate policy to stimulate the
economy, and/or customer behavior in response to government
guidelines aimed to minimize the spread of COVID-19, as more fully
explained throughout this analysis below. On a diluted per
share basis, Premier earned $0.37
during the second quarter of 2020 compared to $0.40 per share earned during the second quarter
of 2019.
For the first half of 2020 Premier realized net income of
$10,874,000 (74 cents per diluted share), a 9.6% decrease from
the $12,035,000 (82 cents per diluted share) earned during the
first half of 2019. The decrease in net income in the first
six months of 2020 is largely due to decreases in interest income
and non-interest income, coupled with an increase in the provision
for loan losses and an increase in non-interest expense.
These changes that negatively affected net income more than offset
decreases in interest expense and income tax expense. The
provision for loan losses increased by $700,000, or 78.7%, in the first six months of
2020, largely to provide for the $1,650,000 of estimated additional credit risk in
the loan portfolio related to consequences of the national economic
shutdown aimed to moderate the spread of COVID-19. The
annualized returns on average common shareholders' equity and
average assets were approximately 8.72% and 1.19% for the six
months ended June 30, 2020, compared
to 10.70% and 1.41% for the same period in 2019.
President and CEO Robert W.
Walker commented, "We are pleased with our second quarter
2020 results, especially with all of the economic changes as
governments worldwide take measures to curb the spread of the
COVID-19 virus. I am proud to report that our management and
staff team members have risen to the occasion. As an
essential business, we haves taken steps to modify our normal
business operations to include keeping branches open with
appropriate 'social distancing' measures; utilizing permitted
guidance provided by federal and state banking supervisory
regulators to assist borrowers to avoid defaulting on their loans;
and robustly participating in the U.S. Treasury's and Small
Business Administration's Payroll Protection Program ("PPP").
We believe we have been prudent by adding approximately
$1,000,000 in the second quarter
alone to our qualitative credit risk analysis of the loan portfolio
for potential COVID-19 related loan losses, even as our other loan
credit risk measurements are improving. Without this
additional provision expense, our company would have reported
second quarter 2020 results rivaling the record quarterly results
we reported in 2019. The path ahead is uncertain for most
businesses, including ours. As lenders, we are carefully
monitoring our borrowers' performance and will respond accordingly
as we learn about their ability to continue to meet their debt
obligations."
Net interest income for the quarter ended June 30, 2020 totaled $16.809 million, up $154,000, or 0.9%, from the $16.655 million of net interest income earned in
the second quarter of 2019, as interest expense savings exceeded a
decrease in interest income. Interest income in 2020
decreased by $468,000, or 2.4%, in
the second quarter of 2020 when compared to the second quarter of
2019, largely due to a $452,000, or
94.6%, decrease in interest income on interest-bearing bank
balances and federal funds sold, and a $205,000, or 8.5%, decrease in interest income on
investment securities. These decreases were partially offset by a
$189,000, or 1.2%, increase in
interest income on loans. Interest income on interest-bearing
bank balances and federal funds sold decreased in the second
quarter of 2020 when compared to the same quarter of 2019 due to
the significant decreases in the earning yields on these
balances. Although the average balance of these increased
from $81.7 million during the second
quarter of 2019 to $112.5 million
during the second quarter of 2020, earning yields dropped
significantly in response to the Federal Reserve Board of
Governors' policy decision to drop the targeted federal funds rate
to a range of 0.00% to 0.25% on March
16, 2020. Similarly, interest income on investment
securities in the second quarter of 2020 decreased by $205,000, or 8.5%, when compared to the second
quarter of 2019. While the average balance of investments
increased by $31.975 million in the
second quarter of 2020 when compared to the same quarter of 2019,
the average yield earned decreased.
Contrary to these two decreases, interest income on loans
increased by $189,000, or 1.2%, in
the second quarter of 2020 when compared to the second quarter of
2019. During the second quarter of 2020, approximately
$468,000 of interest income was
realized from deferred interest and discounts recognized on loans
that paid-off or paid-down during the second quarter of 2020
compared to $293,000 of interest
income of this kind recognized during the second quarter of
2019. The loan payments in 2019 and 2020 included both
non-accrual loans and performing loans that were once on
non-accrual status. As a result of the higher level of
recognition in 2020, interest income on loans increased by
$175,000. Otherwise, interest income
on loans increased by $14,000, or
0.1%, in the second quarter of 2020. This increase includes
approximately $550,000 of interest
income on loans acquired from the acquisition of The First National
Bank of Jackson ("Jackson") on October
25, 2019. Interest income on these loans is included
in Premier's loan interest income only from the date of acquisition
in October 2019 and therefore no
interest income from these loans was included in the second quarter
of 2019. Excluding the loan interest income earned on the
Jackson loans and the increase in
deferred interest and discounts recognized on loans, interest
income on loans decreased by $536,000, or 3.4%, in the second quarter of 2020
when compared to the same quarter of 2019, largely due to a
decrease in the average yield on the loan portfolio.
Premier's participation in the SBA's PPP loan program resulted in
$114,192,000 of new loans during the
second quarter of 2020. These loans increased the second
quarter average loans outstanding by approximately $84,136,000 and increased interest income on
loans during the second quarter of 2020 by approximately
$824,000. Without Premier's
participation in the SBA PPP loan program, and excluding the
average loans from the Jackson
acquisition, average loans outstanding during the second quarter of
2020 would have decreased by $23,448,000, or 2.0%, when compared to the
average loans outstanding during the second quarter of 2019.
This decrease in loans and, in particular, the types of loans that
decreased, also had an effect on the second quarter 2020 provision
for loans losses, as more fully explained below.
More than offsetting the decrease in interest income in the
second quarter of 2020 was a $622,000, or 25.4%, decrease in interest expense,
driven by a decrease in interest expense on deposits.
Interest expense on deposits decreased by $570,000, or 24.9% in the second quarter of 2020,
largely due to decreases in the average rate paid on certificates
of deposit, savings deposits, and NOW and money market deposits
during the second quarter of 2020 compared to the same quarter in
2019. Further interest expense savings were realized due to
decreases in the average balance of higher-costing certificates of
deposit during the second quarter of 2020 compared to the same
quarter in 2019. Nevertheless, average interest-bearing
deposit balances increased by $69.1
million, or 6.5%, in the second quarter of 2020 compared to
the same quarter of 2019, largely due to the acquisition of
Jackson in the fourth quarter of
2019. The average interest rate paid on interest-bearing
deposits decreased by 25 basis points from 0.86% during the second
quarter of 2019 to 0.61% during the second quarter of 2020.
Decreases in short-term rates resulting from actions by the Federal
Reserve Board of Governors to reduce the targeted federal funds
rate, plus an inflow of funds from direct stimulus payments from
the U.S. Treasury to deposit account holders during the second
quarter of 2020, have resulted in a decrease in competition for
bank deposit rates. As a result, the average interest rate
paid on highly liquid NOW and money market deposits decreased by 18
basis points and the average rate paid on savings deposits
decreased by 16 basis points in the second quarter of 2020 when
compared to the second quarter of 2019. Even with these
resulting decreases in the average rate paid on transaction based
deposits, the average outstanding balance of transaction-based
deposits increased, with less than half of the increase coming from
the acquisition of Jackson. Interest expense savings on
interest-bearing transaction deposit accounts totaled $245,000 of the $570,000 decrease in interest expense on
interest-bearing deposits. The remaining $325,000 decrease in interest expense on deposit
accounts came from a decrease in average outstanding certificates
of deposits and a decrease in the average rates paid during the
second quarter of 2020 when compared to the second quarter of
2019. Certificates of deposit decreased on average by
approximately $26.377 million, or
6.5%. Yet, even when factoring in the approximately
$36.613 million of average
certificate of deposit balances from the two Jackson branches
included in the second quarter of 2020, but not part of Premier in
the second quarter of 2019, average certificate of deposit balances
in Premier's other branch locations decreased by $62.990 million or 15.5% in the second quarter of
2020, when compared to the same quarter of 2019. As
certificates mature, depositors are either seeking higher deposit
rates from other competitive depository institutions or are
transferring their balances to more liquid interest-bearing deposit
accounts such as NOW, money market and savings deposits as a means
to keep immediate access to their funds during the uncertainty of
employment or economic conditions.
Additional interest expense savings have been realized in the
second quarter of 2020 from the reduction in outstanding Federal
Home Loan Bank ("FHLB") borrowings and other borrowings at the
parent company. Interest expense on FHLB borrowings decreased
by $25,000, or 52.1%, in the second
quarter of 2020 when compared to the same quarter of 2019, largely
due to the payment upon maturity of approximately $5.4 million of FHLB borrowings since the end of
January 2019. Interest on other borrowings at the parent
company decreased by $10,000.
This borrowing was fully repaid during the first half of 2019 and
therefore no interest expense was recognized on this debt in
2020. Also contributing to the decrease in interest expense
during the second quarter of 2020 was a $20,000, or 20.8%, decrease in interest expense
on Premier's subordinated debt due to a decrease in the variable
interest rate paid in 2020 compared to the second quarter of
2019. The variable interest rate is indexed to the short-term
three-month London Interbank Offered Rate ("LIBOR"), interest rate,
which was lower in the second quarter of 2020 in conjunction with
decreases in short-term interest rate policy by the Federal Reserve
Board of Governors. Contrary to these interest expense
savings, interest expense on short-term borrowings, primarily
customer repurchase agreements, increased by $3,000, or 25.0%, in 2020 when compared to
2019. The additional interest expense was largely due to a
$3.716 million higher average balance
outstanding during the second quarter of 2020.
During the quarter ended June 30,
2020, Premier recorded $590,000 of provision for loan losses compared to
$330,000 of provision for loan losses
recorded during the same quarter of 2019. The provision for
loan losses recorded during the second quarter of 2020 was
primarily to provide for an estimate of additional identified
credit risk in the loan portfolio due to uncertainty related to
future economic conditions resulting from government actions
designed to curb the spread of the COVID-19 virus ("Potential
COVID-19 Losses"). Premier added approximately $1,000,000 to its qualitative credit risk
analysis of the loan portfolio related to Potential COVID-19 Losses
related to loans originated to various industries believed to be
more susceptible to future credit risk resulting from an economic
slowdown such as lodging, restaurants, amusement, personal services
and retail stores. In the second quarter, Premier expanded
its initial first quarter estimate to include loans to non-owner
occupied rental real estate borrowers and religious and civic
organizations. Management also increased the estimate of
Potential COVID-19 Losses on loans where the borrower has been
granted either an interest-only payment deferral period or a full
principal and interest payment deferral period within all of the
industries identified above that are believed to be more
susceptible to future credit risk. Due to government
intervention efforts to stimulate the economy and maintain personal
and business liquidity, the extent, if any, of the impact of the
economic slowdown on such industries may not be known for quite
some time in the future. The additional provision expense
related to Potential COVID-19 Losses in the second quarter of 2020
was partially offset by reductions in estimated credit risk within
the loan portfolio resulting from decreases in loans outstanding,
such as owner-occupied commercial real estate and multifamily real
estate loans, as well as higher risk loans, such as commercial and
industrial loans, construction and land development loans and
consumer loans. Other indications of improving portfolio
credit risk that occurred during the second quarter of 2020 include
decreases in loans classified as Special Mention and Substandard,
improvements in past due ratios and decreases in historical loss
ratios. The level of provision expense is determined under
Premier's internal analyses of evaluating credit risk. The amount
of future provisions for loan losses will depend on any future
improvement or further deterioration in the estimated credit risk
in the loan portfolio as well as whether additional payments are
received on loans previously identified as having significant
credit risk.
Gross charge-offs of loans remained unchanged at approximately
$109,000 in the second quarters of
2020 and 2019, while recoveries on loans previously charged-off
decreased by $22,000 to $51,000 in the second quarter of 2020.
During the first six months of 2020, net charge-offs have decreased
by $111,000 to $744,000, compared to the same six months of
2019. Also during the first six months of 2020, non-accrual
loans decreased by $676,000 since
year-end 2019, while accruing loans over 90 days past due decreased
by $1,248,000.
Net overhead costs (non-interest expenses less non-interest
income) for the quarter ended June 30, 2020 totaled
$9.189 million compared to
$8.694 million in the second quarter
of 2019. Net overhead increased by $495,000, or 5.7%, in the second quarter of 2020
when compared to the second quarter of 2019, largely due to a
$457,000, or 19.5%, decrease in
non-interest income plus a $38,000,
or 0.3%, increase in non-interest expense. Total non-interest
income decreased by $457,000 in the
second quarter of 2020 when compared to the second quarter of 2019,
largely due to a $430,000, or 38.3%,
decrease in revenue from service charges and fees on deposit
accounts. Service charges on deposit accounts decreased
largely due to a $390,000, or 46.1%,
decrease in customer overdraft fees. Transaction based
deposit account balances have increased significantly during the
second quarter of 2020 compared to the same quarter of 2019.
The lack of deposit withdrawals resulting from a decline in normal
consumer spending habits as non-essential businesses were required
to close in an effort to help curb the spread of the COVID-19 virus
has reduced transaction activity and the propensity of deposit
customers to overdraft their accounts. Other sources of
non-interest income decreased by $89,000, or 33.5%, in the second quarter of 2020,
which include decreases in checkbook sales, commissions on
insurance premiums, income from Premier's partial ownership of an
insurance agency as well as brokerage and annuity commission
income. Partially offsetting these decreases in non-interest
income, electronic banking income increased by $10,000, or 1.1% and secondary market mortgage
income increased by $52,000, or
158%. Electronic banking income increased only marginally, as
increases in income from debit card transaction activity were
largely offset by decreases non-customer ATM transaction
fees. Secondary market mortgage income increased, in part,
due to the lower long-term interest rate environment, resulting in
an increase in home loan refinances as customers are taking
advantage of lowering their long-term fixed home loan interest
rate.
Non-interest expense increased by $38,000, or 0.3% in the second quarter of 2020
compared to the second quarter of 2019, largely due to the
operations of the acquired Jackson
branch locations which added approximately $253,000 of direct non-interest expense during
the second quarter of 2020. Overall increases in operating
costs include a $276,000, or 19.4%,
increase in outside data processing costs, a $126,000, or 55.3%, increase in expenses and
writedowns on OREO properties, a $56,000 increase in data conversion expenses, and
an $18,000, or 8.1%, increase in the
amortization of intangible assets. The $276,000 increase in outside data processing
costs included a $79,000 increase in
internet and mobile banking charges, as banking by electronic means
becomes more and more popular among Premier's customer base, and a
$115,000 increase in data line costs
as Premier is migrating to a more robust data line network across
its branch network. Upon full migration, data line expenses
should return to near pre-migration levels. The increase in
OREO expenses and writedowns includes $277,000 of property writedowns in the second
quarter of 2020 compared to only $116,000 of property writedowns in the same
quarter of 2019. These increases were nearly offset by a
$160,000, or 2.9%, decrease in staff
costs, a $79,000, or 4.2%, decrease
in occupancy and equipment expenses, a $60,000, or 19.6%, decrease in professional fees,
a $9,000, or 3.4%, decrease in taxes
not on income, and a $47,000, or
39.5%, decrease in FDIC insurance premiums, when compared to the
second quarter of 2019. The decrease in staff costs is
largely due to an increase in the deferral of staff costs related
to loan originations in the second quarter of 2020 from the high
volume of SBA PPP loans originated during the quarter compared to
the level of loan originations in the second quarter of 2019, which
reduced staff costs by $238,000. During the shutdown of most
business operations mandated by governmental actions designed to
curb the spread of the COVID-19 virus, as an essential business,
most of Premier's branch locations remained open but were limited
primarily to drive-thru traffic or in branch meetings by
appointment. Branches with no drive-thru facilities and those
close to another branch location were closed during much of the
second quarter of 2020. As a result, some employees were
given employment deferrals and the number of hours of non-salaried
employees were reduced commensurate with decrease in customer
demand on branch transactions. The result was a decrease in
wages paid by approximately $169,000
in the second quarter of 2020 when compared to the second quarter
of 2019. This decrease was substantially offset by wages paid
to employees of the two newly acquired Jackson branch locations, which totaled
approximately $137,000 during the
second quarter of 2020 but were not included in Premier's second
quarter 2019 operations. Occupancy and equipment expenses
decreased in the second quarter of 2020 due, in part, to higher
expenses in the second quarter of 2019, due to a $185,000 building impairment charge related to a
branch location that is in the process of being liquidated.
Professional fees decreased by $60,000 largely due to a decrease in legal
fees. FDIC insurance expense decreased by $47,000, largely due to the utilization of FDIC
based community bank assessment credits used to partially offset
the second quarter 2020 FDIC insurance premiums.
Total assets as of June 30, 2020
were up $134.0 million, or 7.5%, to
$1.915 billion from the $1.781 billion of total assets at year-end
2019. The increase in total assets since year-end is largely
due to a $35.5 million increase in
interest bearing bank balances, a $25.9
million increase in securities available for sale, a
$2.5 million increase in federal
funds sold and a $69.7 million
increase in total loans outstanding. Liquid assets, such as
cash and due from banks, interest bearing bank balances and federal
funds sold, increased by $38.6
million, largely due to an increase in funds from a
significant increase in deposit balances during the second quarter
of 2020. Investment securities increased by $25.9 million, or 6.6%, since year-end 2019, as
$91.6 million of new investment
purchases from available funds and an $8.9
million increase in the market value of the securities
available for sale more than offset $73.8
million of proceeds from maturing investments, principal
paydowns on mortgage backed securities, and securities that were
called during the first six months of 2020. Total loans
outstanding increased by $69.7
million, or 5.8%, largely due Premier's robust participation
in the SBA's PPP loan program in the second quarter of 2020, which
generated $114.2 million of new
loans, or 9.0% of Premier's outstanding loans at June 30, 2020. Without these loans,
Premier's loan portfolio would have decreased by approximately
$44.5 million, or 3.7%, during the
first six months of 2020, largely due to regular principal
payments, loan payoffs, and transfers of loans to OREO upon
foreclosure, partially offset by internal loan growth. Higher
risk categories of loans such as construction and land loans,
decreased by approximately $21.1
million or 15.5%; consumer loans, decreased by $3.6 million, or 12.4%; and commercial and
industrial loans, decreased by $23.5
million, or 22.4%. Other real estate owned ("OREO")
increased by $25,000, or 0.2%,
largely due to the foreclosure on one commercial real estate
property during the first quarter of 2020 that also resulted in a
$566,000 loan charge-off. This
and other increases were nearly offset by $598,000 of sales and $277,000 of value write-downs on other OREO
properties. Other assets increased by $1.1 million since year-end 2019, largely due to
a $1,298,000, or 27.6%, increase in
accrued interest receivable primarily from approximately
$216,000 of accrued interest on the
SBA PPP loans for which payments are deferred for the first six
months of the loan and approximately $1,557,000 of accrued interest on $111.6 million of loans whereby Premier has
granted full payment deferrals for a period of 90 days in
accordance with regulatory guidance provided under the CARES Act
during the COVID-19 based economic slowdown. Total deposits
increased by $112.4 million, or 7.5%,
since year-end 2019. The overall increase in deposits is
largely due to a $107.4 million, or
29.2%, increase in non-interest bearing deposits, a $54.1 million, or 14.1%, increase in savings and
money market deposits, and a $13.8
million, or 4.3%, increase in interest bearing transaction
deposits. Partially offsetting these increases, certificates
of deposit ("CD") balances decreased by $62.9 million, or 14.8%. Much of the SBA's
PPP loan program proceeds were originally deposited with Premier's
subsidiary banks, giving rise to an increase in commercial based
deposit balances. Furthermore, government based economic
stimulus checks to individuals have resulted in increases in retail
based deposit balances. Customer repurchase agreements
increased by $7.3 million, or 35.8%
since year-end 2019. FHLB borrowings decreased by
$3.4 million since year-end 2019 due
to payments upon maturity. Premier's subordinated debentures
increased by $19,000 since year-end
2019 due to the accretion of purchase accounting fair value
adjustments applied to the $6.186
million face value of the subordinated debentures.
Other liabilities increased by $3.9
million, primarily due to increases in net deferred tax
liabilities related to the increase in the unrealized gain on
securities available for sale and the accrual of income taxes on
first two quarters of 2020 pretax income not due to be paid until
July 15, 2020. The accrued
income tax payments for the first two quarters of a calendar year
are normally paid on April 15, and
June 15 during the second calendar
quarter but have been postponed in the year 2020 by governmental
regulation to help mitigate some of the adverse economic effects of
government actions designed to curb the spread of the COVID-19
virus.
Stockholders' equity of $254.0
million equaled 13.3% of total assets at June 30, 2020, which compares to stockholders'
equity of $240.2 million, or 13.5% of
total assets, at December 31,
2019. The increase in stockholders' equity was largely due to
the $10.9 million of net income in
the first half of 2020 and a $7.0
million, net of tax, increase in the market value of the
investment portfolio available for sale. These increases in
stockholders' equity were partially offset by the $0.30 per share of cash dividends declared and
paid during the first six months of 2020. The decrease in the
ratio of stockholders' equity to total assets, even though
stockholders' equity increased during the first six months of 2020,
was the result of the growth in total assets, largely in response
to increases in funds from the growth in total deposits.
Certain Statements contained in this news release, including
without limitation statements including the word "believes,"
"anticipates," "intends," "expects" or words of similar import,
constitute "forward-looking statements" within the meaning of
section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Premier to be
materially different from any future results, performance or
achievements of Premier expressed or implied by such
forward-looking statements. Furthermore, uncertainty related to
future economic conditions resulting from government actions
designed to curb the spread of the COVID-19 virus may affect
Premier's operations more or less than currently estimated.
Such factors include, among others, general economic and business
conditions, changes in business strategy or development plans and
other factors referenced in this press release. Given these
uncertainties, prospective investors are cautioned not to place
undue reliance on such forward-looking statements. Premier
disclaims any obligation to update any such factors or to publicly
announce the results of any revisions to any of the forward-looking
statements contained herein to reflect future events or
developments.
Following is a summary of the financial highlights for Premier
as of and for the periods ended June 30,
2020
PREMIER FINANCIAL
BANCORP, INC. Financial Highlights
Dollars in Thousands (except per share data)
|
|
|
For the
Quarter Ended
|
|
For the
Six Months Ended
|
|
June 30
|
|
June 30
|
|
June 30
|
|
June 30
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Interest
Income
|
|
|
|
|
|
|
|
Loans,
including fees
|
16,416
|
|
16,227
|
|
32,170
|
|
32,516
|
Investments and other
|
2,222
|
|
2,879
|
|
5,112
|
|
5,654
|
Total interest
income
|
18,638
|
|
19,106
|
|
37,282
|
|
38,170
|
Interest
Expense
|
|
|
|
|
|
|
|
Deposits
|
1,715
|
|
2,285
|
|
3,880
|
|
4,335
|
Borrowings and other
|
114
|
|
166
|
|
251
|
|
345
|
Total interest
expense
|
1,829
|
|
2,451
|
|
4,131
|
|
4,680
|
Net
interest income
|
16,809
|
|
16,655
|
|
33,151
|
|
33,490
|
Provision for loan
losses
|
590
|
|
330
|
|
1,590
|
|
890
|
Net
interest income after provision
|
16,219
|
|
16,325
|
|
31,561
|
|
32,600
|
Non-interest
Income
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
692
|
|
1,122
|
|
1,798
|
|
2,216
|
Electronic banking income
|
937
|
|
927
|
|
1,755
|
|
1,749
|
Other
non-interest income
|
261
|
|
298
|
|
586
|
|
558
|
Total non-interest
income
|
1,890
|
|
2,347
|
|
4,139
|
|
4,523
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
5,267
|
|
5,427
|
|
10,675
|
|
10,626
|
Net
occupancy and equipment
|
1,798
|
|
1,877
|
|
3,523
|
|
3,541
|
Outside
data processing
|
1,702
|
|
1,426
|
|
3,233
|
|
2,810
|
OREO
expenses and writedowns, net
|
354
|
|
228
|
|
422
|
|
477
|
Amortization of intangibles
|
241
|
|
223
|
|
483
|
|
450
|
Other
non-interest expenses
|
1,717
|
|
1,860
|
|
3,480
|
|
3,730
|
Total non-interest
expense
|
11,079
|
|
11,041
|
|
21,816
|
|
21,634
|
Income
Before Taxes
|
7,030
|
|
7,631
|
|
13,884
|
|
15,489
|
Income
Taxes
|
1,524
|
|
1,772
|
|
3,010
|
|
3,454
|
NET
INCOME
|
5,506
|
|
5,859
|
|
10,874
|
|
12,035
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
0.38
|
|
0.40
|
|
0.74
|
|
0.82
|
DILUTED EARNINGS PER SHARE
|
0.37
|
|
0.40
|
|
0.74
|
|
0.82
|
DIVIDENDS PER SHARE
|
0.15
|
|
0.15
|
|
0.30
|
|
0.30
|
|
|
|
|
|
|
|
|
Charge-offs
|
109
|
|
109
|
|
935
|
|
1,012
|
Recoveries
|
51
|
|
73
|
|
191
|
|
157
|
Net
charge-offs (recoveries)
|
58
|
|
36
|
|
744
|
|
855
|
PREMIER FINANCIAL
BANCORP, INC. Financial Highlights (continued)
Dollars in Thousands (except per share data)
|
|
|
Balances as
of
|
|
June 30
|
|
December
31
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Cash and due from
banks
|
23,724
|
|
23,091
|
Interest-bearing bank
balances
|
101,521
|
|
66,063
|
Federal funds
sold
|
8,365
|
|
5,902
|
Securities available
for sale
|
416,700
|
|
390,754
|
Loans
(net)
|
1,250,614
|
|
1,181,753
|
Other real estate
owned
|
12,267
|
|
12,242
|
Other
assets
|
49,270
|
|
48,189
|
Goodwill and other
intangible assets
|
52,533
|
|
53,016
|
TOTAL
ASSETS
|
1,914,994
|
|
1,781,010
|
|
|
|
|
LIABILITIES &
EQUITY
|
|
|
|
Deposits
|
1,608,151
|
|
1,495,753
|
Fed funds/repurchase
agreements
|
27,737
|
|
20,428
|
FHLB
borrowings
|
2,995
|
|
6,375
|
Subordinated
debentures
|
5,455
|
|
5,436
|
Other
liabilities
|
16,661
|
|
12,777
|
TOTAL
LIABILITIES
|
1,660,999
|
|
1,540,769
|
Common Stockholders'
Equity
|
253,995
|
|
240,241
|
TOTAL
LIABILITIES &
STOCKHOLDERS'
EQUITY
|
1,914,994
|
|
1,781,010
|
|
|
|
|
TOTAL BOOK VALUE
PER COMMON SHARE
|
17.31
|
|
16.39
|
Tangible Book
Value per Common Share
|
13.73
|
|
12.77
|
|
|
|
|
Non-Accrual
Loans
|
13,761
|
|
14,437
|
Loans 90 Days Past
Due and Still Accruing
|
980
|
|
2,228
|
View original
content:http://www.prnewswire.com/news-releases/premier-financial-bancorp-inc-reports-second-quarter-2020-earnings-301102623.html
SOURCE Premier Financial Bancorp, Inc.