-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GVpmB7feklcG6I0l8rjtm2jeLrk8FwSjhOfFRGiOhxjTAIcKeLAivvkl1KZoxoQb F/rz14rP5aw3FE5PsCwn2w== 0000887919-04-000042.txt : 20041101 0000887919-04-000042.hdr.sgml : 20041101 20041101102639 ACCESSION NUMBER: 0000887919-04-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041101 DATE AS OF CHANGE: 20041101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIER FINANCIAL BANCORP INC CENTRAL INDEX KEY: 0000887919 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 611206757 STATE OF INCORPORATION: KY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20908 FILM NUMBER: 041108528 BUSINESS ADDRESS: STREET 1: 2883 FIFTH AVENUE STREET 2: NONE CITY: HUNTINGTON STATE: WV ZIP: 25702 BUSINESS PHONE: 3045251600 8-K 1 pfbi8k102904.txt THIRD QUARTER 2004 EARNINGS RELEASE 10/29/04 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) October 29, 2004 Premier Financial Bancorp, Inc. -------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Kentucky -------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-20908 61-1206757 -------------------------------------------------------- (Commission File No.) (IRS Employer Identification No.) 2883 Fifth Avenue Huntington, West Virginia 25702 -------------------------------------------------------- (Address of principal executive offices) (Zip Code) (304) 525-1600 -------------------------------------------------------- Registrant's telephone number, including area code Not Applicable ---------------------------------------------------------------------------- (Former name or former address, if changes since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): |_| Written communication pursant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) INFORMATION TO BE INCLUDED IN THE REPORT Item 2.02. Results of Operations and Financial Condition On October 29, 2004, Premier issued a press release regarding its financial results for the quarter ended September 30, 2004. The full text of that press release is furnished as Exhibit 99.1. Item 9.01. Financial Statements and Exhibits (c) Exhibit 99.1 - Press Release dated October 29, 2004. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PREMIER FINANCIAL BANCORP, INC. ------------------------------- (Registrant) /s/ Brien M. Chase ----------------------------------- Date: November 1, 2004 Brien M. Chase, Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description -------------- ------------------------------------- 99.1 Press Release dated October 29, 2004, captioned "Premier Financial Bancorp, Inc. Reports Third Quarter 2004 Earnings". EX-99 2 ex99102904pressrelease.txt TEXT OF PRESS RELEASE DATED 10/29/2004 NEWS FOR IMMEDIATE RELEASE CONTACT: BRIEN M. CHASE, CFO OCTOBER 29, 2004 (304) 525-1600 PREMIER FINANCIAL BANCORP, INC. REPORTS THIRD QUARTER 2004 EARNINGS PREMIER FINANCIAL BANCORP, INC. (PREMIER), HUNTINGTON, WEST VIRGINIA (NASDAQ/NMS-PFBI), a $551 million community bank holding company with six bank subsidiaries, announced positive earnings results for the third quarter of 2004. Premier realized net income of $5,178,000 (99 cents per share) during the quarter ending September 30, 2004. Included in the $5,178,000 of third quarter net income is a $4,730,000 after tax gain on the sale of a subsidiary bank. The $448,000 (9 cents per share) of net income from continuing operations in the third quarter of 2004 compares to a ($1,877,000) ($0.36 per share) net loss from continuing operations reported for the third quarter of 2003 and a $474,000 (9 cents per share) net income from continuing operations reported for the second quarter of 2004. Included in the $448,000 of third quarter 2004 net income from continuing operations is a $109,000 after tax writedown on property leased to the former subsidiary. [Net income from continuing operations excludes the operations of the subsidiary that was sold on July 1, 2004, Citizens Bank (Kentucky), Inc. The following discussion relates only to continuing operations.] Net interest income for the quarter ending September 30, 2004 totaled $4.418 million, compared to $4.671million of net interest income earned in the third quarter of 2003 and $4.398 million earned in the second quarter of 2004. When compared to the second quarter of 2004, net interest income has increased slightly and has remained relatively stable from quarter to quarter as declines in loan interest income have been substantially offset by declines in interest expense on deposits and other debt. The decline in 2004 net interest income when compared to the third quarter of 2003 is the result of lower loans outstanding and the significant volume ($6.6 million at September 30, 2004) of loans on non-accrual at Premier's subsidiary Farmers Deposit Bank. During the quarter ending September 30, 2004, Premier made provisions for loan losses of $162,000 compared to $4,343,000 during the same period of 2003 and $374,000 in the second quarter of 2004. The significant provision in the prior year was primarily the result of loan problems identified at Farmers Deposit Bank as more fully discussed in previous filings. The decrease in the provision in the third quarter of 2004 versus the second quarter of 2004 was the result of providing for additional risk of probable losses identified in the loan portfolio during the second quarter. As a result of charge-offs of loans already identified as having significant loss potential, the allowance for loan losses at September 30, 2004 was 2.83% of total loans compared to 4.31% of total loans at year-end 2003 and 3.98% of total loans at September 30, 2003. President and CEO Robert W. Walker commented, "We are pleased to report our third consecutive quarter of net income from continuing operations. The gain on the sale of our subsidiary has restored the capital ratios of the company. We are using the proceeds from the sale to reduce our outstanding debt and thus improve future profitability. In September, we reduced our bank debt by $3.0 million and on October 15th, we redeemed $4.5 million of our junior subordinated debentures. We believe both of these transactions will improve our future net interest margin. Also during the third quarter, our investment portfolio increased by approximately $8.0 million while total loans outstanding increased by approximately $2.8 million." Net overhead (non-interest expenses less non-interest income) for the quarter ending September 30, 2004 totaled $3.599 million. This compares to $3.315 million in the third quarter of 2003, and $3.337 million in the second quarter of 2004. Net overhead for the third quarter of 2004 includes a $165,000 writedown of premises owned by the parent and leased to Premier's former subsidiary. This building was marketed during the third quarter and a sale was completed in October. When compared to the third quarter of 2003, increased professional fee expense and staff costs in 2004 were partially offset by lower occupancy expenses, OREO writedowns and bad check losses. When compared to the prior calendar quarter (second quarter of 2004), lower non-interest income, higher staff costs, higher occupancy expenses and higher other operating expenses were only partially offset by gains on the liquidation of OREO properties, and slightly lower professional fees and other taxes. Total assets of continuing operations as of September 30, 2004 of $551 million were $8.2 million or 1.5% greater than the $543 million of total assets of continuing operations at year-end, largely due to the proceeds from the sale of the bank subsidiary. The increase due to the sale proceeds has been partially offset by loan collections at Farmers Deposit exceeding loan growth at Premier's other subsidiary banks and the reduction in other debt. Shareholders' equity of $51.2 million equaled 9.3% of total assets at September 30, 2004. This compares to shareholders' equity of $45.5 million or 7.3% of total assets or 8.4% of assets of continuing operations at December 31, 2003. 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. 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 ending September 30, 2004. PREMIER FINANCIAL BANCORP, INC. Financial Highlights Dollars in Thousands (except per share data) For the For the Quarter Ended Nine Months Ended Sept 30 Sept 30 Sept 30 Sept 30 2004 2003 2004 2003 -------- -------- -------- -------- (Restated) (Restated) Interest Income $6,951 $7,665 $20,932 $24,449 Interest Expense 2,533 2,994 7,670 9,747 Net Interest Income 4,418 4,671 13,262 14,702 Provision for Loan Losses 162 4,343 671 18,388 Net Interest Income after Provision 4,256 328 12,591 (3,686) Non-Interest Income 884 923 2,646 2,473 Securities Transactions - 2 10 206 Non-Interest Expenses 4,483 4,238 13,198 12,940 Income (Loss) from Continuing Operations Before Taxes 657 (2,985) 2,039 (13,941) Income Taxes (Benefit) 209 (1,108) 636 (4,926) Income (Loss) from Continuing Operations 448 (1,877) 1,404 (9,021) Income (Loss) from Discontinued Operation 4,730 21 4,734 (82) NET INCOME (LOSS) 5,178 (1,856) 6,138 (9,103) EARNINGS (LOSS) PER SHARE 0.99 (0.36) 1.17 (1.39) FROM CONTINUING OPERATIONS 0.09 (0.35) 0.27 (1.37) PREMIER FINANCIAL BANCORP, INC. Financial Highlights (continued) Dollars in Thousands (except per share data) Balances as of September 30 December 31 2004 2003 -------- -------- ASSETS Cash/Due From Banks/Fed Funds 44,640 33,473 Securities Available for Sale 155,035 147,646 Loans (net) 315,278 317,494 Other Real Estate Owned 1,431 3,187 Other Assets 19,260 25,613 Goodwill 15,816 15,816 Assets of Discontinued Operation - 79,163 TOTAL ASSETS 551,460 622,392 LIABILITIES Deposits 446,543 455,474 Fed Funds/Repurchase Agreements 7,187 - Other Debt 11,847 18,307 Junior Subordinated Debentures 26,546 26,546 Other Liabilities 8,184 5,129 Liabilities of Discontinued Operation - 71,396 TOTAL LIABILITIES 500,307 576,852 Stockholders' Equity 51,153 45,540 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 551,460 622,392 TOTAL BOOK VALUE PER SHARE 9.78 8.70 Non-Accrual Loans 9,467 11,958 Loans 90 Days Past Due and Still Accruing 1,020 4,137 -----END PRIVACY-ENHANCED MESSAGE-----