EX-99.3 4 a5406003-ex993.htm EXHIBIT 99.3 Exhibit 99.3
 
Exhibit 99.3
 
Porter Bancorp, Inc.
Proforma Financial Reconciliation
(dollars in thousands except for share and per share data)

   
As of and for the Years Ended December 31,
  
(Dollars in thousands except per share data)
  
2006
  
2005
  
2004
  
2003
  
Net Income:
                          
As reported
  
$
14,339
  
$
14,615
  
$
10,887
  
$
8,386
  
Adjustments
                          
Add-back of minority interests (1)
    
-
    
1,314
    
898
    
731
  
Additional taxes (2)
    
-
    
(3,963
)
  
(2,186
)
  
(1,780
)
Acquisition funding (3)
    
-
    
(587
)
  
(587
)
  
(587
)
Adjusted net income
  
$
14,339
  
$
11,379
  
$
9,012
  
$
6,750
  
                           
Period End Shares Outstanding:
                          
As reported and adjusted for stock split
    
7,622,447
    
5,868,224
    
5,868,224
    
5,868,224
  
Shares issued in reorganization
   
-
    
464,223
    
464,223
    
464,223
  
Adjusted shares outstanding
    
7,622,447
    
6,332,447
    
6,332,447
    
6,332,447
  
                           
                           
Balance Sheet Data:
                          
                           
Stockholders’equity
                          
As reported
  
$
108,346
  
$
71,876
  
$
66,221
  
$
62,236
  
Adjustment for consolidation (4)
    
-
    
-
    
4,328
    
4,701
  
Adjustment for effect of net income adjustments
    
-
    
(3,236
)
  
(1,875
)
  
(1,636
)
Adjusted stockholders’ equity
  
$
108,346
  
$
68,640
  
$
68,674
  
$
65,301
  
                           
Total Assets
                          
As reported
  
$
1,051,006
  
$
991,481
  
$
887,201
  
$
767,074
  
Adjustment for cash-out inreorganization
    
-
    
(5,313
)
  
(5,313
)
  
(5,313
)
Adjustment for net change inintangibles
    
-
    
-
    
8,100
    
8,100
  
Adjusted total assets
  
$
1,051,006
  
$
986,168
  
$
889,988
  
$
769,861
  
                           
                           
Common Share Data:
                          
Basic earnings per share (5)
  
$
2.15
    
1.80
    
1.42
    
1.07
  
Diluted earnings per share (5)
    
2.15
    
1.80
    
1.42
    
1.07
  
Book value per share
    
14.21
    
10.84
    
10.84
    
10.31
  
Tangible book value per share
    
12.45
    
8.81
    
8.79
    
8.32
  
                           
Selected Performance Ratios (6):
                          
Return on average equity
    
17.19
%
  
16.57
%
  
13.45
%
  
N/A
  
Return on average assets
    
1.44
    
1.21
    
1.09
    
0.91
%

 
(1)
This adjustment reflects the minority interests purchased in our reorganization. The minority interests were reported on an after-tax, C corporation basis.
(2)
This adjustment represents a tax rate of 34% applied to reported pre-tax income less reported income tax expense to reflect the conversion from Subchapter S corporation to C corporation status.
(3)
Acquisition funding includes $9,500,000 in senior notes at an annual 6% interest rate and $5,313,000 in cash at an assumed annual 6% interest rate; net of tax at a 34% tax rate.
(4)
This adjustment represents the equity value of convertible non-voting common stock issued to acquire the minority interest of Ascencia Bancorp at a fair market value of $25.50 per share and the net book value of the minority interests.
(5)
The 40,000 shares of unvested restricted stock granted under our 2006 stock incentive plan that were outstanding as of December 31, 2006 have not been included in computing earnings per share because they are unvested and anti-dilutive.
(6)
Average asset and average equity calculations utilize two-point period averages that reflect the adjustments for the reorganization and the conversion from subchapter S corporation to C corporation status. Ratios for the year ended December 31, 2006 are actual results.