PremierWest Bancorp Announces Second Quarter Results
PremierWest Bancorp (NASDAQ: PRWT), which operates several banking branches in California, announced results for the second quarter of 2010, as follows:
PremierWest Bancorp Financial Results
For the three months ended June 30, 2010:
— The bank’s total risk-based capital ratios for PremierWest Bancorp and Bank are 11.56 percent and 11.65 percent, respectively, both exceeding published regulatory guidelines for “Well-Capitalized” financial institutions.
— Net interest margin of 4.23 percent compared to 4.27 percent for the quarter ended March 31, 2010, and 4.33 percent for the three months ended June 30, 2009.
— PremierWest Bancorp’s Loan loss reserve of $43.9 million or 4.02 percent of gross loans at June 30, 2010, compared to $46.5 million or 4.16 percent at March 31, 2010.
— Non-performing assets of $144.8 million or 9.91 percent of total assets compared to $125.9 million or 8.37 percent of total assets at March 31, 2010.
— Other real estate owned (OREO) and foreclosed assets decreased $6.4 million with sales of $7.8 million, comprised of a $6.7 million reduction in OREO and a $1.1 million net gain on sales.
— Provision for loan losses of $2.4 million versus $6.1 million for the first quarter of 2010, and $50.4 million for the quarter ended June 30, 2009.
— Charge-offs, net of recoveries, of $5.0 million compared to $5.5 million in the preceding quarter.
— Total deposits of $1.3 billion down $48.4 million from March 31, 2010, with non-interest bearing demand deposits at 19 percent of total deposits.
— Strong liquidity with $115.5 million in cash and cash equivalents.
— Net loss applicable to common shareholders of $2.1 million compared to a net loss of $3.3 million for the first quarter ended March 31, 2010, and a net loss of $28.6 million for the quarter ended June 30, 2009.
— Loss per common share of $0.02 versus a loss of $0.10 per common share for the three months ending March 31, 2010, and loss per common share of $1.15 for the quarter ended June 30, 2009 — the declining trend due to reduced losses and to the increased shares outstanding.
A PremierWest Bancorp representative stated, “During the quarter, we continued to take very aggressive actions in assessing real estate collateral values. We updated the majority of appraisals that were more than six months old on real estate collateral supporting non-performing loans. This was done to stay ahead of any prospective collateral value deterioration risk as much as possible. We also accelerated the mandated five percent annual write-down of other real estate owned values in response to a new interpretation of regulatory requirements by our state banking regulators.”
PremierWest Bancorp was “Well-Capitalized” under published regulatory numerical standards at June 30, 2010, with a risk-based capital ratio of 11.65 percent. which is higher than the 10.0% minimu required for this rating.
PremierWest Bancorp (NASDAQ: PRWT) is a financial services holding company. It is headquartered in Oregon and operates through its subsidiary, PremierWest Bank. In 2001, PremierWest Bancorp acquired Timberline Bancshares, Inc. and its subsidiary, Timberline Community Bank, with eight branch offices located in Siskiyou County in northern California. In January 2004, PremierWest acquired Mid Valley Bank with 5 branch offices in the northern California counties of Shasta, Tehama and Butte. In 2008, PremierWest Bancorp acquired Stockmans Financial Group, and its wholly-owned subsidiary, Stockmans Bank, with 5 full service banking offices in the Sacramento, California area.
