þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended June 30,
2009
|
|
or
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ___________ to
___________
|
|
Commission
file number 0-20908
|
|
PREMIER FINANCIAL
BANCORP, INC.
|
|
(Exact
name of registrant as specified in its
charter)
|
Kentucky
|
61-1206757
|
|
(State
or other jurisdiction of incorporation organization)
|
(I.R.S.
Employer Identification No.)
|
|
2883
Fifth Avenue
Huntington,
West Virginia
|
25702
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant’s
telephone number (304)
525-1600
|
Large
accelerated filer o.
|
Accelerated
filer o.
|
Non-accelerated
filer o
(Do not check if smaller reporting
company)
|
Smaller
reporting company þ
|
3
|
|
26
|
|
38
|
|
38
|
|
40
|
|
40
|
|
40
|
|
40
|
|
40
|
|
40
|
|
40
|
|
41
|
|
42
|
4
|
|
5
|
|
6
|
|
7
|
|
9
|
(UNAUDITED)
|
||||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 25,133 | $ | 22,148 | ||||
Federal
funds sold
|
12,979 | 15,899 | ||||||
Securities
available for sale
|
180,911 | 175,741 | ||||||
Loans
held for sale
|
3,805 | 1,193 | ||||||
Loans
|
465,077 | 467,111 | ||||||
Allowance for loan
losses
|
(8,450 | ) | (8,544 | ) | ||||
Net loans
|
456,627 | 458,567 | ||||||
Federal
Home Loan Bank and Federal Reserve Bank stock
|
3,874 | 3,931 | ||||||
Premises
and equipment, net
|
11,443 | 11,367 | ||||||
Real
estate and other property acquired through foreclosure
|
997 | 1,056 | ||||||
Interest
receivable
|
3,004 | 3,720 | ||||||
Goodwill
|
28,724 | 28,543 | ||||||
Other
intangible assets
|
1,287 | 1,431 | ||||||
Other
assets
|
484 | 869 | ||||||
Total assets
|
$ | 729,268 | $ | 724,465 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest
bearing
|
$ | 106,762 | $ | 101,588 | ||||
Time deposits, $100,000 and
over
|
78,058 | 71,145 | ||||||
Other interest
bearing
|
416,962 | 416,449 | ||||||
Total deposits
|
601,782 | 589,182 | ||||||
Federal
funds purchased
|
- | - | ||||||
Securities
sold under agreements to repurchase
|
12,144 | 18,351 | ||||||
Federal
Home Loan Bank advances
|
6,219 | 7,607 | ||||||
Other
borrowed funds
|
14,599 | 15,560 | ||||||
Interest
payable
|
952 | 1,054 | ||||||
Other
liabilities
|
3,463 | 3,289 | ||||||
Total liabilities
|
639,159 | 635,043 | ||||||
Stockholders'
equity
|
||||||||
Preferred stock, no par value;
1,000,000 shares authorized;
|
||||||||
none issued or
outstanding
|
- | - | ||||||
Common stock, no par value;
10,000,000 shares authorized;
|
||||||||
6,392,772 shares issued and
outstanding
|
2,264 | 2,264 | ||||||
Additional paid in
capital
|
58,292 | 58,265 | ||||||
Retained earnings
|
28,524 | 27,346 | ||||||
Accumulated other comprehensive
income
|
1,029 | 1,547 | ||||||
Total stockholders'
equity
|
90,109 | 89,422 | ||||||
Total liabilities and
stockholders' equity
|
$ | 729,268 | $ | 724,465 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
income
|
||||||||||||||||
Loans, including
fees
|
$ | 7,453 | $ | 7,296 | $ | 14,878 | $ | 13,849 | ||||||||
Securities available for
sale
|
||||||||||||||||
Taxable
|
1,587 | 1,858 | 3,223 | 3,388 | ||||||||||||
Tax-exempt
|
61 | 57 | 118 | 93 | ||||||||||||
Federal funds sold and
other
|
19 | 222 | 37 | 530 | ||||||||||||
Total interest
income
|
9,120 | 9,433 | 18,256 | 17,860 | ||||||||||||
Interest
expense
|
||||||||||||||||
Deposits
|
2,236 | 2,751 | 4,589 | 5,339 | ||||||||||||
Repurchase agreements and
other
|
29 | 53 | 62 | 106 | ||||||||||||
FHLB advances and other
borrowings
|
193 | 180 | 385 | 372 | ||||||||||||
Total interest
expense
|
2,458 | 2,984 | 5,036 | 5,817 | ||||||||||||
Net
interest income
|
6,662 | 6,449 | 13,220 | 12,043 | ||||||||||||
Provision
for loan losses
|
110 | 91 | 212 | (44 | ) | |||||||||||
Net interest income after
provision for loan losses
|
6,552 | 6,358 | 13,008 | 12,087 | ||||||||||||
Non-interest
income
|
||||||||||||||||
Service charges on deposit
accounts
|
828 | 825 | 1,553 | 1,463 | ||||||||||||
Electronic banking
income
|
256 | 219 | 492 | 382 | ||||||||||||
Secondary market mortgage
income
|
129 | 139 | 212 | 300 | ||||||||||||
Gain on sale of
securities
|
- | 93 | - | 93 | ||||||||||||
Other
|
113 | 276 | 239 | 380 | ||||||||||||
1,326 | 1,552 | 2,496 | 2,618 | |||||||||||||
Non-interest
expenses
|
||||||||||||||||
Salaries and employee
benefits
|
2,656 | 2,534 | 5,450 | 4,759 | ||||||||||||
Occupancy and equipment
expenses
|
651 | 668 | 1,363 | 1,168 | ||||||||||||
Outside data
processing
|
779 | 591 | 1,534 | 1,175 | ||||||||||||
Professional fees
|
241 | 222 | 582 | 401 | ||||||||||||
Taxes, other than payroll,
property and income
|
175 | 164 | 353 | 318 | ||||||||||||
Write-downs, expenses, sales of
other
real estate owned, net
|
54 | 20 | 131 | 30 | ||||||||||||
Supplies
|
100 | 98 | 208 | 180 | ||||||||||||
FDIC insurance
|
515 | 83 | 606 | 131 | ||||||||||||
Other expenses
|
714 | 624 | 1,422 | 964 | ||||||||||||
5,885 | 5,004 | 11,649 | 9,126 | |||||||||||||
Income
before income taxes
|
1,993 | 2,906 | 3,855 | 5,579 | ||||||||||||
Provision
for income taxes
|
638 | 976 | 1,271 | 1,875 | ||||||||||||
Net
income
|
$ | 1,355 | $ | 1,930 | $ | 2,584 | $ | 3,704 | ||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
6,393 | 6,012 | 6,393 | 5,625 | ||||||||||||
Diluted
|
6,393 | 6,018 | 6,393 | 5,653 | ||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | 0.21 | $ | 0.32 | $ | 0.40 | $ | 0.66 | ||||||||
Diluted
|
0.21 | 0.32 | 0.40 | 0.66 | ||||||||||||
Dividends
per share
|
0.11 | 0.11 | 0.22 | 0.21 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income
|
$ | 1,355 | $ | 1,930 | $ | 2,584 | $ | 3,704 | ||||||||
Other comprehensive
income:
|
||||||||||||||||
Unrealized losses arising during
the period
|
(888 | ) | (5,539 | ) | (785 | ) | (1,983 | ) | ||||||||
Reclassification of realized
amount
|
- | (93 | ) | - | (93 | ) | ||||||||||
Net change in unrealized gain
(loss) on securities
|
(888 | ) | (5,632 | ) | (785 | ) | (2,076 | ) | ||||||||
Less tax impact
|
(302 | ) | (1,915 | ) | (267 | ) | (706 | ) | ||||||||
Other comprehensive
loss:
|
(586 | ) | (3,717 | ) | (518 | ) | (1,370 | ) | ||||||||
Comprehensive
income (loss)
|
$ | 769 | $ | (1,787 | ) | $ | 2,066 | $ | 2,334 | |||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities
|
||||||||
Net income
|
$ | 2,584 | $ | 3,704 | ||||
Adjustments to reconcile net
income to net cash from operating
activities
|
||||||||
Depreciation
|
516 | 461 | ||||||
Provision for loan
losses
|
212 | (44 | ) | |||||
Amortization (accretion),
net
|
251 | (8 | ) | |||||
FHLB stock
dividends
|
- | (67 | ) | |||||
OREO writedowns (gains on sales),
net
|
133 | 21 | ||||||
Stock compensation
expense
|
27 | 57 | ||||||
Loans originated for
sale
|
(14,987 | ) | (15,727 | ) | ||||
Secondary market loans
sold
|
12,587 | 14,949 | ||||||
Secondary market
income
|
(212 | ) | (300 | ) | ||||
Changes in :
|
||||||||
Interest
receivable
|
716 | 5 | ||||||
Other assets
|
421 | 1,003 | ||||||
Interest payable
|
(102 | ) | (115 | ) | ||||
Other liabilities
|
174 | 239 | ||||||
Net cash from operating
activities
|
2,320 | 4,178 | ||||||
Cash
flows from investing activities
|
||||||||
Purchases of securities available
for sale
|
(85,061 | ) | (58,350 | ) | ||||
Proceeds from maturities and calls
of securities available for sale
|
78,953 | 44,099 | ||||||
Proceeds from sales of securities
available for sale
|
- | 1,995 | ||||||
Redemption of FRB and
FHLB stock, (net of purchases)
|
107 | (99 | ) | |||||
Purchases of subsidiaries, net of
cash received
|
- | (8,717 | ) | |||||
Net change in federal funds
sold
|
2,920 | 7,034 | ||||||
Net change in
loans
|
1,429 | (7,887 | ) | |||||
Purchases of premises and
equipment, net
|
(592 | ) | (716 | ) | ||||
Proceeds from sale of other real
estate acquired through foreclosure
|
225 | 266 | ||||||
Net cash from investing
activities
|
(2,019 | ) | (22,375 | ) | ||||
Cash
flows from financing activities
|
||||||||
Net change in
deposits
|
12,646 | 2,346 | ||||||
Cash dividends
paid
|
(1,406 | ) | (1,227 | ) | ||||
Net change in short-term Federal
Home Loan Bank advances
|
(1,300 | ) | - | |||||
Repayment of Federal Home Loan
Bank advances
|
(88 | ) | (91 | ) | ||||
Repayment of other borrowed
funds
|
(961 | ) | (3,297 | ) | ||||
Proceeds from other
borrowings
|
- | 11,532 | ||||||
Net change in federal funds
purchased
|
- | (191 | ) | |||||
Net change in agreements to
repurchase securities
|
(6,207 | ) | 11,328 | |||||
Net cash from financing
activities
|
2,684 | 20,400 | ||||||
Net
change in cash and cash equivalents
|
2,985 | 2,203 | ||||||
Cash
and cash equivalents at beginning of period
|
22,148 | 22,365 | ||||||
Cash
and cash equivalents at end of period
|
$ | 25,133 | $ | 24,568 |
2009
|
2008
|
|||||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash paid during period for
interest
|
$ | 5,138 | $ | 5,932 | ||||
Loans transferred to real estate
acquired through foreclosure
|
299 | 251 | ||||||
Subsidiaries
acquired
|
||||||||
Fair value of assets acquired
from Citizens First Bank, Inc.
|
$ | - | $ | 68,048 | ||||
Common stock issued to acquire
Citizens First Bank, Inc.
|
- | 6,400 | ||||||
Cash paid for capital stock of
Citizens First Bank, Inc.
|
- | 5,300 | ||||||
Liabilities assumed of Citizens
First Bank, Inc.
|
- | $ | 56,348 | |||||
Fair value of assets acquired
from Traders Bankshares, Inc.
|
$ | - | $ | 112,488 | ||||
Common stock issued to acquire
Traders Bankshares, Inc.
|
- | 9,138 | ||||||
Cash paid for capital stock of
Traders Bankshares, Inc.
|
- | 9,002 | ||||||
Liabilities assumed of Traders
Bankshares, Inc.
|
- | $ | 94,348 | |||||
June
30, 2009
|
||||||||||||||
Year
|
Total
|
Net
Income
|
||||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
Six Mos
|
|||||||||
Citizens
Deposit Bank & Trust
|
Vanceburg,
Kentucky
|
1991
|
$ | 124,564 | $ | 396 | $ | 795 | ||||||
Farmers
Deposit Bank
|
Eminence,
Kentucky
|
1996
|
64,801 | 72 | 225 | |||||||||
Ohio
River Bank
|
Ironton,
Ohio
|
1998
|
88,744 | 268 | 589 | |||||||||
First
Central Bank, Inc.
|
Philippi,
West Virginia
|
1998
|
118,075 | 274 | 429 | |||||||||
Boone
County Bank, Inc.
|
Madison,
West Virginia
|
1998
|
168,770 | 438 | 911 | |||||||||
Traders
Bank
|
Spencer,
West Virginia
|
2008
|
165,034 | 269 | 410 | |||||||||
Mt.
Vernon Financial Holdings, Inc.
|
Huntington,
West Virginia
|
1999
|
301 | (7 | ) | (15 | ) | |||||||
Parent
and Intercompany Eliminations
|
(1,021 | ) | (355 | ) | (760 | ) | ||||||||
Consolidated
Total
|
$ | 729,268 | $ | 1,355 | $ | 2,584 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available
for sale
|
||||||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
U. S. agency MBS -
residential
|
$ | 48,964 | $ | 1,233 | $ | (7 | ) | $ | 50,190 | |||||||
U. S. agency
CMO’s
|
21,346 | 604 | (5 | ) | 21,945 | |||||||||||
Total mortgage-backed securities
of government
sponsored agencies
|
70,310 | 1,837 | (12 | ) | 72,135 | |||||||||||
U. S. Treasury
securities
|
997 | 12 | - | 1,009 | ||||||||||||
U. S. agency
securities
|
100,429 | 416 | (558 | ) | 100,287 | |||||||||||
Obligations of states and
political subdivisions
|
7,484 | 59 | (63 | ) | 7,480 | |||||||||||
Total available for
sale
|
$ | 179,220 | $ | 2,324 | $ | (633 | ) | $ | 180,911 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available
for sale
|
||||||||||||||||
U. S. Treasury
securities
|
$ | 1,494 | $ | 50 | $ | - | $ | 1,544 | ||||||||
U. S. agency
securities
|
96,154 | 1,018 | (67 | ) | 97,105 | |||||||||||
Obligations of states and
political subdivisions
|
7,065 | 75 | (10 | ) | 7,130 | |||||||||||
Mortgage-backed securities of
government
sponsored agencies
|
68,553 | 1,479 | (70 | ) | 69,962 | |||||||||||
Total available for
sale
|
$ | 173,266 | $ | 2,622 | $ | (147 | ) | $ | 175,741 |
Amortized
Cost
|
Fair
Value
|
|||||||
Available
for sale
|
||||||||
Due in one year or
less
|
$ | 9,148 | $ | 9,257 | ||||
Due after one year through five
years
|
83,581 | 83,446 | ||||||
Due after five years through ten
years
|
16,181 | 16,073 | ||||||
Mortgage-backed securities of
government sponsored agencies
|
70,310 | 72,135 | ||||||
Total available for
sale
|
$ | 179,220 | $ | 180,911 | ||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S.
agency securities
|
$ | 59,375 | $ | (558 | ) | $ | - | $ | - | $ | 59,375 | $ | (558 | ) | ||||||||||
Obligations
of states and political
subdivisions
|
2,656 | (63 | ) | - | - | 2,656 | (63 | ) | ||||||||||||||||
U.
S. agency MBS – residential
|
2,703 | (7 | ) | - | - | 2,703 | (7 | ) | ||||||||||||||||
U.
S. agency CMO’s
|
2,527 | (5 | ) | - | - | 2,527 | (5 | ) | ||||||||||||||||
Total
temporarily impaired
|
$ | 67,261 | $ | (633 | ) | $ | - | $ | - | $ | 67,261 | $ | (633 | ) |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S.
agency securities
|
$ | 12,475 | $ | (67 | ) | $ | - | $ | - | $ | 12,475 | $ | (67 | ) | ||||||||||
Obligations
of states and political
subdivisions
|
871 | (10 | ) | - | - | 871 | (10 | ) | ||||||||||||||||
Mortgage-backed
securities
of government sponsored
agencies
|
5,714 | (70 | ) | - | - | 5,714 | (70 | ) | ||||||||||||||||
Total
temporarily impaired
|
$ | 19,060 | $ | (147 | ) | $ | - | $ | - | $ | 19,060 | $ | (147 | ) |
2009
|
2008
|
|||||||
Commercial,
secured by real estate
|
$ | 133,285 | $ | 133,742 | ||||
Commercial,
other
|
61,911 | 61,655 | ||||||
Real
estate construction
|
27,799 | 26,182 | ||||||
Residential
real estate
|
186,609 | 185,536 | ||||||
Agricultural
|
2,650 | 2,446 | ||||||
Consumer
and home equity
|
47,770 | 51,793 | ||||||
Other
|
5,053 | 5,757 | ||||||
$ | 465,077 | $ | 467,111 |
2009
|
2008
|
|||||||
Impaired
loans at period end with an allowance
|
$ | 10,393 | $ | 11,610 | ||||
Impaired
loan at period end with no allowance
|
- | - | ||||||
Amount
of allowance for loan losses allocated
|
2,122 | 2,208 |
2009
|
2008
|
|||||||
Non-accrual
loans
|
$ | 6,776 | $ | 6,943 | ||||
Accruing
loans which are contractually past due 90 days or more
|
609 | 625 | ||||||
Restructured
loans
|
1,348 | 1,203 | ||||||
Total
|
$ | 8,733 | $ | 8,771 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30
|
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Balance,
beginning of period
|
$ | 8,587 | $ | 6,407 | $ | 8,544 | $ | 6,497 | ||||||||
Gross
charge-offs
|
(311 | ) | (186 | ) | (476 | ) | (265 | ) | ||||||||
Recoveries
|
64 | 137 | 170 | 261 | ||||||||||||
Allowance
related to acquired banks
|
- | 2,300 | - | 2,300 | ||||||||||||
Provision
for loan losses
|
110 | 91 | 212 | (44 | ) | |||||||||||
Balance,
end of period
|
$ | 8,450 | $ | 8,749 | $ | 8,450 | $ | 8,749 |
2009
|
2008
|
|||||||
Payments
due at maturity in May 2010, fixed rate at rates from 6.25% to
6.64%, averaging 6.45%
|
$ | 4,000 | $ | 4,000 | ||||
Payments
due monthly with maturities from November 2011 to July 2012, fixed rates
from 4.10% to 4.40%, averaging 4.26%
|
519 | 607 | ||||||
Overnight
borrowed funds
|
1,700 | 3,000 | ||||||
$ | 6,219 | $ | 7,607 | |||||
2009
(remaining six months)
|
$ | 1,814 | ||
2010
|
4,177 | |||
2011
|
177 | |||
2012
|
51 | |||
2013
|
- | |||
Thereafter
|
- | |||
$ | 6,219 | |||
June
30,
2009
|
December
31,
2008
|
Regulatory
Minimum
Requirements
|
To
Be Considered
Well
Capitalized
|
|||||||||||||
Tier
I Capital (to Risk-Weighted Assets)
|
14.1 | % | 14.0 | % | 4.0 | % | 6.0 | % | ||||||||
Total
Capital (to Risk-Weighted Assets)
|
15.4 | % | 15.3 | % | 8.0 | % | 10.0 | % | ||||||||
Tier
I Capital (to Average Assets)
|
8.8 | % | 8.7 | % | 4.0 | % | 5.0 | % |
2009
|
2008
|
2007
|
||||||||||
Risk-free
interest rate
|
2.74 | % | 3.50 | % | 4.78 | % | ||||||
Expected
option life (yrs)
|
10.00 | 7.00 | 5.00 | |||||||||
Expected
stock price volatility
|
19.26 | % | 23.00 | % | 25.00 | % | ||||||
Dividend
yield
|
6.72 | % | 3.10 | % | 1.41 | % | ||||||
Weighted
average fair value of options
granted during the year
|
$ | 0.37 | $ | 2.55 | $ | 3.81 |
- - - - - - - 2009 - - - - - - - -
|
- - - - - - -
2008 - - - - - - - -
|
|||||||||||||||
Weighted
Average
Exercise
|
Weighted
Average
Exercise
|
|||||||||||||||
Options
|
Price
|
Options
|
Price
|
|||||||||||||
Outstanding
at beginning of year
|
181,916 | $ | 12.47 | 150,249 | $ | 12.65 | ||||||||||
Grants
|
47,100 | 6.55 | 45,300 | 12.92 | ||||||||||||
Exercises
|
- | - | - | - | ||||||||||||
Forfeitures
or expired
|
(11,567 | ) | 12.01 | - | - | |||||||||||
Outstanding
at June 30,
|
217,449 | $ | 8.68 | 195,549 | $ | 12.71 | ||||||||||
Exercisable
at June 30,
|
131,631 | 117,433 | ||||||||||||||
Weighted
average remaining life of options
outstanding
|
7.2 | 7.1 | ||||||||||||||
Weighted
average fair value of options granted
during the year
|
$ | 0.37 | $ | 2.55 |
- - - - - - - - Outstanding - - - - - - -
-
|
- - - - - - - - Currently Exercisable - - - - - -
- -
|
||||||||||||||||||||||||||||
Range
of Exercise Prices
|
Number
|
Weighted
Average Exercise Price
|
Aggregate
Intrinsic Value
|
Number
|
Weighted
Average Remaining Contractual Life
|
Weighted
Average Exercise Price
|
Aggregate
Intrinsic Value
|
||||||||||||||||||||||
$6.50 to $10.00 | 85,516 | $ | 7.52 | $ | - | 38,416 | 4.1 | $ | 8.70 | $ | - | ||||||||||||||||||
$10.01 to $12.50 | 29,333 | 11.62 | - | 29,333 | 5.6 | 11.62 | - | ||||||||||||||||||||||
$12.51 to $15.00 | 73,600 | 13.47 | - | 34,882 | 8.0 | 13.69 | - | ||||||||||||||||||||||
$15.01 to $17.50 | 29,000 | 16.00 | - | 29,000 | 6.6 | 16.00 | - | ||||||||||||||||||||||
Outstanding
- June 30, 2009
|
217,449 | 11.22 | $ | - | 131,631 | 6.0 | 12.28 | $ | - | ||||||||||||||||||||
Fair
Value Measurements at
June
30, 2009 Using:
|
||||||||||||||||
Carrying
Value
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Available
for sale
|
||||||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
U. S. agency MBS -
residential
|
$ | 50,190 | $ | - | $ | 50,190 | $ | - | ||||||||
U. S. agency
CMO’s
|
21,945 | - | 21,945 | - | ||||||||||||
Total mortgage-backed securities
of government
sponsored agencies
|
72,135 | - | 72,135 | - | ||||||||||||
U. S. Treasury
securities
|
1,009 | - | 1,009 | - | ||||||||||||
U. S. agency
securities
|
100,287 | - | 100,287 | - | ||||||||||||
Obligations of states and
political subdivisions
|
7,480 | - | 7,340 | 140 | ||||||||||||
Total available for
sale
|
$ | 180,911 | $ | - | $ | 180,771 | $ | 140 |
Fair
Value Measurements at
December
31, 2008 Using:
|
||||||||||||||||
Carrying
Value
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Available
for sale
|
||||||||||||||||
U. S. Treasury
securities
|
$ | 1,544 | $ | - | $ | 1,544 | $ | - | ||||||||
U. S. agency
securities
|
97,105 | - | 97,105 | - | ||||||||||||
Mortgage-backed securities of
government
sponsored agencies
|
69,962 | - | 69,962 | - | ||||||||||||
Obligations of states and
political subdivisions
|
7,130 | - | 7,130 | - | ||||||||||||
Total available for
sale
|
$ | 175,741 | $ | - | $ | 175,741 | $ | - |
Securities
Available-for-sale
|
||||||||
Three
Months Ended
June
30, 2009
|
Six
Months Ended
June
30, 2009
|
|||||||
Balance
of recurring Level 3 assets at beginning of period
|
$ | - | $ | - | ||||
Total gains or losses
(realized/unrealized):
|
||||||||
Included in earnings –
realized
|
- | - | ||||||
Included in earnings –
unrealized
|
- | - | ||||||
Included in other comprehensive
income
|
- | - | ||||||
Purchases, sales, issuances and
settlements, net
|
- | - | ||||||
Transfers in and/or out of Level
3
|
140 | 140 | ||||||
Balance of recurring Level 3
assets at June 30, 2009
|
$ | 140 | $ | 140 |
June 30, 2009
|
December 31, 2008
|
|||||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||||||
Financial
assets
|
||||||||||||||||
Cash and due from
banks
|
$ | 25,133 | $ | 25,133 | $ | 22,148 | $ | 22,148 | ||||||||
Federal funds sold
|
12,979 | 12,979 | 15,899 | 15,899 | ||||||||||||
Securities available for
sale
|
180,911 | 180,911 | 175,741 | 175,741 | ||||||||||||
Loans held for
sale
|
3,805 | 3,805 | 1,193 | 1,193 | ||||||||||||
Loans, net
|
456,627 | 460,243 | 458,567 | 465,488 | ||||||||||||
Federal Home Loan Bank and
Federal
Reserve Bank stock
|
3,874 | n/a | 3,931 | n/a | ||||||||||||
Interest
receivable
|
3,004 | 3,004 | 3,720 | 3,720 | ||||||||||||
Financial
liabilities
|
||||||||||||||||
Deposits
|
$ | (601,782 | ) | $ | (607,160 | ) | $ | (589,182 | ) | $ | (592,658 | ) | ||||
Securities sold under agreements
to
repurchase
|
(12,144 | ) | (12,144 | ) | (18,351 | ) | (18,351 | ) | ||||||||
Federal Home Loan Bank
advances
|
(6,219 | ) | (6,428 | ) | (7,607 | ) | (7,860 | ) | ||||||||
Other borrowed
funds
|
(14,599 | ) | (14,694 | ) | (15,560 | ) | (15,660 | ) | ||||||||
Interest payable
|
(952 | ) | (952 | ) | (1,054 | ) | (1,054 | ) | ||||||||
Fair
Value Measurements at
June 30,
2009 Using
|
||||||||||||||||
June
30, 2009
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired
Loans
|
$ | 8,271 | $ | - | $ | - | $ | 8,271 |
Fair
Value Measurements at
December
31, 2008 Using
|
||||||||||||||||
Dec
31, 2008
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired
Loans
|
$ | 9,402 | $ | - | $ | - | $ | 9,402 |
PREMIER
FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Six Months Ended June 30,
2009
|
Six Months Ended June 30,
2008
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and
other
|
$ | 34,255 | $ | 37 | 0.22 | % | $ | 41,151 | $ | 530 | 2.58 | % | ||||||||||||
Securities available for
sale
|
||||||||||||||||||||||||
Taxable
|
160,785 | 3,223 | 4.01 | 149,683 | 3,388 | 4.53 | ||||||||||||||||||
Tax-exempt
|
7,419 | 118 | 4.82 | 5,023 | 93 | 5.61 | ||||||||||||||||||
Total investment
securities
|
168,204 | 3,341 | 4.04 | 154,706 | 3,481 | 4.56 | ||||||||||||||||||
Total loans
|
464,410 | 14,878 | 6.46 | 375,350 | 13,849 | 7.40 | ||||||||||||||||||
Total interest-earning
assets
|
666,869 | 18,256 | 5.53 | % | 571,207 | 17,860 | 6.28 | % | ||||||||||||||||
Allowance
for loan losses
|
(8,545 | ) | (7,259 | ) | ||||||||||||||||||||
Cash
and due from banks
|
24,875 | 16,163 | ||||||||||||||||||||||
Other
assets
|
47,784 | 34,982 | ||||||||||||||||||||||
Total assets
|
$ | 730,983 | $ | 615,093 | ||||||||||||||||||||
Liabilities
and Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
deposits
|
$ | 496,268 | 4,589 | 1.86 | $ | 422,888 | 5,339 | 2.53 | ||||||||||||||||
Short-term
borrowings
|
14,129 | 62 | 0.88 | 13,183 | 106 | 1.61 | ||||||||||||||||||
FHLB advances
|
5,125 | 143 | 5.63 | 4,791 | 147 | 6.15 | ||||||||||||||||||
Other
borrowings
|
15,055 | 242 | 3.24 | 9,341 | 225 | 4.83 | ||||||||||||||||||
Total interest-bearing
liabilities
|
530,577 | 5,036 | 1.91 | % | 450,203 | 5,817 | 2.59 | % | ||||||||||||||||
Non-interest
bearing deposits
|
105,764 | 84,340 | ||||||||||||||||||||||
Other
liabilities
|
3,858 | 5,838 | ||||||||||||||||||||||
Shareholders’
equity
|
90,784 | 74,712 | ||||||||||||||||||||||
Total liabilities and
equity
|
$ | 730,983 | $ | 615,093 | ||||||||||||||||||||
Net
interest earnings
|
$ | 13,220 | $ | 12,043 | ||||||||||||||||||||
Net
interest spread
|
3.62 | % | 3.69 | % | ||||||||||||||||||||
Net
interest margin
|
4.01 | % | 4.24 | % | ||||||||||||||||||||
PREMIER
FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended June 30,
2009
|
Three Months Ended June 30,
2008
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and
other
|
$ | 27,472 | $ | 19 | 0.28 | % | $ | 43,184 | $ | 222 | 2.06 | % | ||||||||||||
Securities available for
sale
|
||||||||||||||||||||||||
Taxable
|
169,897 | 1,587 | 3.74 | 166,881 | 1,858 | 4.45 | ||||||||||||||||||
Tax-exempt
|
7,595 | 61 | 4.87 | 6,237 | 57 | 5.54 | ||||||||||||||||||
Total investment
securities
|
177,492 | 1,648 | 3.78 | 173,118 | 1,915 | 4.49 | ||||||||||||||||||
Total loans
|
464,118 | 7,453 | 6.44 | 412,090 | 7,296 | 7.10 | ||||||||||||||||||
Total interest-earning
assets
|
669,082 | 9,120 | 5.48 | % | 628,392 | 9,433 | 6.04 | % | ||||||||||||||||
Allowance
for loan losses
|
(8,521 | ) | (7,958 | ) | ||||||||||||||||||||
Cash
and due from banks
|
25,365 | 18,104 | ||||||||||||||||||||||
Other
assets
|
48,476 | 42,730 | ||||||||||||||||||||||
Total assets
|
$ | 734,402 | $ | 681,268 | ||||||||||||||||||||
Liabilities
and Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
deposits
|
$ | 499,210 | 2,236 | 1.80 | $ | 468,328 | 2,751 | 2.36 | ||||||||||||||||
Short-term
borrowings
|
12,585 | 29 | 0.92 | 13,598 | 53 | 1.56 | ||||||||||||||||||
FHLB advances
|
4,598 | 71 | 6.19 | 4,768 | 73 | 6.14 | ||||||||||||||||||
Other
borrowings
|
14,813 | 122 | 3.30 | 10,474 | 107 | 4.10 | ||||||||||||||||||
Total interest-bearing
liabilities
|
531,206 | 2,458 | 1.86 | % | 497,168 | 2,984 | 2.41 | % | ||||||||||||||||
Non-interest
bearing deposits
|
108,122 | 94,539 | ||||||||||||||||||||||
Other
liabilities
|
3,953 | 8,941 | ||||||||||||||||||||||
Shareholders’
equity
|
91,121 | 80,620 | ||||||||||||||||||||||
Total liabilities and
equity
|
$ | 734,402 | $ | 681,268 | ||||||||||||||||||||
Net
interest earnings
|
$ | 6,662 | $ | 6,449 | ||||||||||||||||||||
Net
interest spread
|
3.62 | % | 3.63 | % | ||||||||||||||||||||
Net
interest margin
|
4.01 | % | 4.13 | % | ||||||||||||||||||||
(In
Thousands)
|
||||||||
2009
|
2008
|
|||||||
Non-accrual
loans
|
$ | 6,776 | $ | 6,943 | ||||
Accruing
loans which are contractually past
due 90 days or more
|
609 | 625 | ||||||
Restructured
|
1,348 | 1,203 | ||||||
Total non-performing
loans
|
8,733 | 8,771 | ||||||
Other
real estate acquired through foreclosure
(OREO)
|
997 | 1,056 | ||||||
Total non-performing
assets
|
$ | 9,730 | $ | 9,827 | ||||
Non-performing
loans as a percentage of
total loans
|
1.88 | % | 1.88 | % | ||||
Non-performing
assets as a percentage of
total assets
|
1.33 | % | 1.36 | % |
|
1.
|
Core
deposits consisting of both consumer and commercial deposits and
certificates of deposit of $100,000 or more. Management
believes that the majority of its $100,000 or more certificates of deposit
are no more volatile than its other deposits. This is due to
the nature of the markets in which the subsidiaries
operate.
|
|
2.
|
Cash
flow generated by repayment of loans and
interest.
|
|
3.
|
Arrangements
with correspondent banks for purchase of unsecured federal
funds.
|
|
4.
|
The
sale of securities under repurchase agreements and borrowing from the
Federal Home Loan Bank.
|
|
5.
|
Maintenance
of an adequate available-for-sale security portfolio. The
Company owns $180.9 million of securities at market value as of June 30,
2009.
|
/s/
Robert W. Walker
|
/s/
Brien M. Chase
|
|
Robert
W. Walker, President and
|
Brien
M. Chase, Senior Vice President
|
|
Chief
Executive Officer
|
and
Chief Financial Officer
|
|
Date: August
13, 2009
|
Date: August
13, 2009
|
|
(a)
|
Annual
meeting of the Shareholders was held June 17,
2009.
|
(b)
|
All
director nominees were elected.
|
(c)
|
Certain
matters voted upon at the meeting and the votes cast with respect to such
matters are as follows:
|
Director
|
Votes
Received
|
Votes
Withheld
|
||||||
1. Toney
K. Adkins
|
5,404,718 | 143,578 | ||||||
2. Hosmer
A. Brown, III
|
5,397,274 | 151,022 | ||||||
3. Edsel
R. Burns
|
5,403,971 | 144,325 | ||||||
4. E.
V. Holder, Jr.
|
5,397,589 | 150,707 | ||||||
5. Keith
F. Molihan
|
5,397,924 | 150,372 | ||||||
6. Marshall
T. Reynolds
|
5,053,842 | 494,454 | ||||||
7. Neal
Scaggs
|
5,396,388 | 151,908 | ||||||
8. Robert
W. Walker
|
5,406,071 | 142,225 | ||||||
9. Thomas
W. Wright
|
5,401,976 | 146,320 |