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Premier Financial Bancorp Inc. (PFBI) filed Quarterly Report for the period ended 2011-03-31.
Premier Financial Bancorp Inc. has a market cap of $55.96 million; its shares were traded at around $7.0499 with a P/E ratio of 7.83 and P/S ratio of 0.93. Premier Financial Bancorp Inc. had an annual average earning growth of 5% over the past 5 years.
This is the annual revenues and earnings per share of PFBI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PFBI.
Highlight of Business Operations:
Net interest income for the three months ended March 31, 2011 totaled $10.75 million, down $314,000, or 2.8%, from the $11.06 million of net interest income earned in the first three months of 2010. Interest income in 2011 decreased by $626,000, or 4.6%, largely due to a $612,000 decrease in interest income on loans. Interest income on loans decreased due to lower average yields earned even as the volume of outstanding loans increased. The lower average yield earned on loans was made worse by an increase in loans placed on non-accrual status during the quarter whereby the accrued interest on these loans was reversed against the current year s loan interest income. Interest earned on investments decreased by $40,000 due to lower average yields even though on a higher average volume of investments. Interest earned on federal funds sold and interest bearing bank balances increased by $26,000 largely due to a higher average volume of assets held in this category.
Non-interest income increased by $94,000, or 6.2%, to $1,611,000 for the first three months of 2011 compared to the same three months of 2010. Service charges on deposit accounts decreased by $34,000, or 3.7%, and secondary market mortgage income remained relatively unchanged at $88,000 in 2011 compared to $89,000 in the first three months of 2010. These decreases were more than offset by a $109,000, or 32.1%, increase in electronic banking income (income from debit/credit cards, ATM fees and internet banking charges) and a $20,000 increase in other non-interest income. Electronic banking income increased largely due to continued increases in Premier s deposit customer base and customers greater propensity to use electronic means to conduct their banking business. Premier s conversion to a more modern banking software system in 2005 has allowed Premier to offer more electronic banking services and made it easier for customers to conduct their banking electronically.
Non-interest expenses for the first quarter of 2011 totaled $9,307,000, or 3.18% of average assets on an annualized basis, compared to $8,510,000, or 3.16% of average assets for the same period of 2010. The $797,000 increase in non-interest expenses in 2011 when compared to the first quarter of 2010 is largely due to $379,000 of conversion expenses incurred during 2011, as Premier is changing its operating and customer delivery systems to a more unified platform to be completed in the third quarter of 2011. Also contributing to the increase in non-interest expenses in 2011 was a $198,000, or 19.6%, increase in data processing expenses, a $97,000, or 8.5%, increase in occupancy and equipment expenses, a $53,000, or 11.6% increase in FDIC insurance expense, a $92,000 increase in loan collection expenses, a $35,000 increase in professional fees and a $67,000 increase in core deposit amortization expense. Data processing expense has increased due to higher rates charged by Premier s data providers and an increase in the number accounts processed. Occupancy and equipment expense increased largely due to $81,000 in gains on the sale of three buildings in the first quarter of 2010 which served to reduce the reported expense for that period. FDIC insurance expense increased largely due to an increase in the assessed deposit base, resulting in part from the four branches acquired in the third quarter of 2010, while core deposit amortization expense increased due to the core deposit intangible assets associated with the same branch purchase in 2010. These expense increases were partially offset by a $40,000, or 1.0%, decrease in staff costs, a $63,000, or 24.6%, decrease in non-income based taxes, and a $71,000, or 45.8%, decrease in other real estate owned expenses.
Total assets at March 31, 2011 increased by $3.8 million to just over $1.187 billion from the $1.183 billion at December 31, 2010. Likewise, earning assets increased by $3.7 million from the $1.092 billion at year-end 2010 to end the quarter at $1.096 billion. The increase in earning assets was largely due to an increase in securities available for sale partially offset by a decrease in total loans outstanding (see below).
Cash and due from banks at March 31, 2011 was $23.3 million, a $3.3 million increase from the $20.0 million at December 31, 2010. Interest bearing bank balances decreased by $2.9 million from the $78.6 million reported at December 31, 2010. While federal funds sold decreased by $5.8 million to $17.8 million at March 31, 2011. Changes in these highly liquid assets are generally in response to increases in deposits, the demand for deposit withdrawals or the funding of loans or investment purchases and are part of Premier s management of its liquidity and interest rate risks. The decrease in interest bearing bank balances plus the decrease in federal funds sold during the first three months of 2011 was largely in response to fund an increase in securities available for sale during that time.
Deposits totaled $996.4 million as of March 31, 2011, an $11.1 million increase from the $985.3 million in deposits at December 31, 2010. The overall increase in deposits is largely due to a $12.0 million increase in non-interest bearing deposits. Interest bearing time deposits $100,000 and over decreased by $4.8 million during the first quarter of 2011. This decrease was partially offset by a $3.9 million increase in all other interest bearing deposits. Contrary to the growth in total deposits, repurchase agreements with corporate and public entity customers decreased in the first quarter of 2011, declining by $7.2 million to $22.5 million as of March 31, 2011.
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