-----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, KnOplcwwb9Wv3oRviqCjHOLHI1Eh3C5ykHBJw/3enEPy+z72x4QLcmV8ul0fmXXm 1jnh4hboubznnWGd2zxEtg== 0000887919-05-000020.txt : 20050506 0000887919-05-000020.hdr.sgml : 20050506 20050506115354 ACCESSION NUMBER: 0000887919-05-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050506 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050506 DATE AS OF CHANGE: 20050506 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: 05806202 BUSINESS ADDRESS: STREET 1: 2883 FIFTH AVENUE STREET 2: NONE CITY: HUNTINGTON STATE: WV ZIP: 25702 BUSINESS PHONE: 3045251600 8-K 1 pfbi8k050605.txt PFBI 1ST QTR 05 EARNINGS RELEASE 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) May 6, 2005 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 May 6, 2005, Premier issued a press release regarding its financial results for the quarter ended March 31, 2005. 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 May 6, 2005. 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: May 6, 2005 Brien M. Chase, Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description -------------- ------------------------------------- 99.1 Press Release dated May 6, 2005, captioned "Premier Financial Bancorp, Inc. Reports First Quarter 2005 Earnings". EX-99 2 ex99050605pressrelease.txt TEXT OF PRESS RELEASE EXHIBIT 99.1 ------------ NEWS FOR IMMEDIATE RELEASE CONTACT: BRIEN M. CHASE, CFO MAY 6, 2005 (304) 525-1600 PREMIER FINANCIAL BANCORP, INC. REPORTS FIRST QUARTER 2005 EARNINGS PREMIER FINANCIAL BANCORP, INC. (PREMIER), HUNTINGTON, WEST VIRGINIA (NASDAQ/NMS-PFBI), a $538 million community bank holding company with five bank subsidiaries announced positive earnings results for the first quarter of 2005. Premier realized net income of $803,000 (15 cents per share) during the quarter ending March 31, 2005, all from continuing operations, a 57% increase over the $511,000 of net income reported for the same quarter of 2004. On a per share basis, Premier earned $0.15 during the first quarter 2005, a 50% increase over the $0.10 per share earned during first quarter of 2004. The increased earnings in 2005 were primarily the result of lower interest expense and lower professional fees which were only partially offset by a higher provision for loan losses. The $511,000 of net income reported for the first quarter of 2004 is divided into $482,000 from continuing operations and $29,000 from discontinued operations. The discontinued operation was Premier's wholly-owned subsidiary Citizens Bank (Kentucky), Inc. ("Citizens Bank") which was sold on July 1, 2004. The following discussion relates only to continuing operations. Net interest income for the quarter ending March 31, 2005 totaled $4.727 million, compared to $4.446 million of net interest income earned in the first quarter of 2004 and $4.802 million earned in the fourth quarter of 2004. When compared to the first quarter of 2004, net interest income has increased by 6.3% largely due to $291,000 of interest expense savings from the early retirement of $5.5 million of Premier's trust preferred securities (NASDAQ/NMS-PFBIP) in the fourth quarter of 2004, the payoff of $5.8 million of bank debt at the holding company, and a decrease in interest-bearing deposits. The 1.6% decline in net interest income when compared to the fourth quarter of 2004 is largely due to a $188,000 decline in interest income on loans resulting from a continuing decline in loans outstanding at Premier's subsidiary Farmers Deposit Bank and a slight increase in non-accrual loans. This decline in interest income was partially offset by additional interest expense savings in the first quarter of 2005. During the quarter ending March 31, 2005, Premier made provisions to the allowance for loan losses of $243,000 compared to $135,000 during the same period of 2004 and $355,000 in the fourth quarter of 2004. These small fluctuations in the quarterly provisions for loan losses are the result of providing for loan growth at Premier's performing banks coupled with provisions resulting from newly deteriorating loans identified in the normal course of business by Premier's on-going credit risk evaluations. As a result of the second quarter 2004 charge-off of $4.7 million of previously identified troubled credits, the allowance for loan losses at March 31, 2005 was 2.88% of total loans compared to 2.89% of total loans at year-end 2004 and 4.19% of total loans at March 31, 2004 President and CEO, Robert W. Walker commented, "We are excited about the improvement in our earnings for the first quarter of 2005 as we build upon the momentum we have been creating. Our debt reduction plans are bearing fruit in the form of lower interest costs. Our credit administration policies are bearing fruit in the form of consistent and reasonable provisions to the allowance for loan losses. And our efforts to reduce our operating expenses through operational synergies are bearing fruit in the form of lower net overhead expenses. Our plans for additional operating synergies are currently making a giant leap forward in the second quarter as we convert our data and item processing systems to a third party provider. While there will be some short-term costs to convert in the second quarter, we believe the long-term operating synergies should more than offset these costs as we will be able to take advantage of emerging technologies in information and item processing, now and in the years to come." Net overhead for the quarter ending March 31, 2005 totaled $3.327 million. This compares to $3.626 million in the first quarter of 2004, and $3.714 million in the fourth quarter of 2004. When compared to the first quarter of 2004 and the prior calendar quarter (4th Qtr 2004), lower professional fee expense and taxes not on income in 2005 were partially offset by higher staff costs, conversion and training expenses, and a one-time loss on the disposal of a bond servicing operation in 2005. The fourth quarter of 2004 also included $214,000 of one-time expenses related to the early redemption of Premier's trust preferred securities. Total assets as of March 31, 2005 of $538 million were relatively unchanged from the $537 million of total assets at year-end. However, the decrease in other liabilities resulting from the March 31, 2005 payment of the 9.75% interest-bearing deferred distributions on the trust preferred securities was replaced with by a $6.6 million increase in interest bearing deposits (at a substantially lower interest cost). Shareholders' equity of $50.6 million equaled 9.4% of total assets at March 31, 2005 which compares to shareholders' equity of $51.0 million or 9.5% of total assets at December 31, 2004. The decline in shareholders' equity is due to a continuing decline in the market value of the securities portfolio resulting from the recent increases in the interest rate environment. Premier invests in high quality debt securities of U.S. Government agencies and fully expects to receive the face value of these securities upon their maturity. 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 period ending March 31, 2005. PREMIER FINANCIAL BANCORP, INC. Financial Highlights Dollars in Thousands (except per share data) For the Quarter Ended March 31 March 31 2005 2004 Interest Income 7,045 7,055 Interest Expense 2,318 2,609 Net Interest Income 4,727 4,446 Provision for Loan Losses 243 135 Net Interest Income after Provision 4,484 4,311 Non-Interest Income 907 846 Securities Transactions - 10 Non-Interest Expenses 4,234 4,472 Income from Continuing Operations Before Taxes 1,157 695 Income Taxes 354 213 Income from Continuing Operations 803 482 Income from Discontinued Operations - 29 NET INCOME 803 511 EARNINGS PER SHARE 0.15 0.10 FROM CONTINUING OPERATIONS 0.15 0.09 Charge-offs 550 1,067 Recoveries 190 383 Net Charge-offs 360 684 PREMIER FINANCIAL BANCORP, INC. Financial Highlights (continued) Dollars in Thousands (except per share data) Balances as of March 31 December 31 2005 2004 ASSETS Cash/Due From Banks/Fed Funds 38,869 31,816 Securities Available for Sale 148,757 153,892 Loans (net) 312,979 315,543 Other Real Estate Owned 2,444 2,247 Other Assets 18,893 17,941 Goodwill 15,816 15,816 TOTAL ASSETS 537,758 537,255 LIABILITIES Deposits 445,042 437,798 Fed Funds/Repurchase Agreements 7,293 9,046 Other Debt 10,523 11,490 Junior Subordinated Debentures 20,876 20,876 Other Liabilities 3,412 7,016 TOTAL LIABILITIES 487,146 486,226 Stockholders' Equity 50,612 51,029 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 537,758 537,255 TOTAL BOOK VALUE PER SHARE 9.67 9.75 Non-Accrual Loans 7,028 6,847 Loans 90 Days Past Due and Still Accruing 620 739 -----END PRIVACY-ENHANCED MESSAGE-----