UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 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): April
27, 2011
PROVIDENT
COMMUNITY BANCSHARES, INC.
(Exact
name of registrant as specified in its charter)
|
Delaware |
1-5735 |
57-1001177 |
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(State or other Jurisdiction of |
(Commission File |
(IRS Employer |
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2700 Celanese Road, Rock Hill, South Carolina |
29732 |
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(Address of principal executive offices) |
(Zip Code) |
| Registrant’s telephone number, including area code: |
(803) 325-9400 |
Not
Applicable
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Company under any of
the following provisions:
⃞ Written communications pursuant 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 pursuant 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))
Item 2.02 Results of Operations and Financial Condition.
On May 2, 2011, Provident Community Bancshares, Inc., the holding company for Provident Community Bank, N.A., announced its first quarter results for the period ending March 31, 2011. The press release announcing financial results for the period ending March 31, 2011 is included as Exhibit 99.1 and incorporated herein by reference.
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On April 27, 2011, Provident Community Bancshares, Inc. (the “Company”) received a letter from The NASDAQ Stock Market notifying the Company that, for 30 consecutive business days, the Company’s common stock had not maintained a minimum bid price of $1.00 per share as required for continued inclusion on The NASDAQ Capital Market by Listing Rule 5550(a)(2). This notification has no effect on the listing of the Company’s securities at this time.
NASDAQ has provided the Company 180 calendar days, or until October 24, 2011, to regain compliance with Listing Rule 5550(a)(2). If, at any time before October 24, 2011, the bid price of the Company’s common stock closes at $1.00 or more for a minimum of 10 consecutive business days, NASDAQ will provide written notification that the Company has achieved compliance with Listing Rule 5550(a)(2) and the Company’s shares will continue to trade on The NASDAQ Capital Market. If the Company determines that it will not meet the minimum bid requirement by October 24, 2011 but would otherwise meet all NASDAQ Capital Market initial inclusion requirements except bid price, the Company can notify NASDAQ Market of its intention to cure the deficiency by effecting a reverse stock split, if necessary. However, if the Company will not be able to cure the deficiency, or if the Company is not otherwise eligible, NASDAQ will provide written notice that the Company’s securities will be delisted from The NASDAQ Capital Market. At such time, the Company would be entitled to appeal the delisting determination to a NASDAQ Listing Qualifications Panel.
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statement of Businesses Acquired: Not applicable
(b) Pro Forma Information: Not applicable
(c) Shell Company Transactions: Not applicable
(d) Exhibits
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Number |
Description |
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| 99.1 |
Earnings Release Dated May 2, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Provident Community Bancshares, Inc. |
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Dated: |
May 2, 2011 |
By: |
/s/ Dwight V. Neese |
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Dwight V. Neese |
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President and Chief Executive Officer |
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Exhibit 99.1
Provident Community Bancshares Reports First Quarter Results
ROCK HILL, S.C.--(BUSINESS WIRE)--May 2, 2011--Provident Community Bancshares, Inc. (NASDAQ CM: PCBS) (the “Corporation”) recorded a net loss to common shareholders of $6,000 for the three months ended March 31, 2011 as compared to a net loss of $99,000 for the same period in 2010. Operating results for the current period were impacted by an increase of $245,000 in expenses primarily related to the disposition of foreclosed properties, offset by lower provisions for loan losses due primarily to a net reduction in total loans of $11.4 million. Net loss per common share was $0.00 (diluted) for the three months ended March 31, 2011, versus a net loss of $0.06 per common share (diluted) for the same period in 2010.
At March 31, 2011, assets totaled $400.3 million, a decrease of $8.5 million, or 2.1%, from $408.7 million at December 31, 2010. Investment securities at March 31, 2011 decreased 4.4% to $141.9 million from $148.5 million at December 31, 2010. Fed funds sold at March 31, 2011 increased $10.8 million to $25.3 million from $14.5 million at December 31, 2010 as a result of sales and maturities of securities. Net loans receivable decreased 5.7% to $187.5 million at March 31, 2011 as a result of lower demand and more stringent underwriting standards. Deposits decreased $4.8 million to $308.3 million at March 31, 2011 due to a reduction in funding needs. FHLB advances and other borrowings decreased $2.7 million to $66.8 million at March 31, 2011 due primarily to the maturation of borrowings. Shareholders’ equity decreased $679,000, or 6.6%, to $9.6 million at March 31, 2011 from $10.3 million at December 31, 2010 due primarily to a $790,000 increase in unrealized losses on securities available for sale, offset by net income before accrued preferred stock dividends of $111,000.
Nonperforming loans which are primarily commercial real estate properties were $21.2 million as of March 31, 2011, or 10.9% of total loans, as compared to $18.8 million at December 31, 2010, an increase of $2.4 million. Real estate acquired through foreclosure decreased $1.5 million, to $9.1 million at March 31, 2011 from $10.6 million at December 31, 2010, as a result of the sales of five properties. Bad debt charge-offs, net of recoveries, were $432,000 for the three months ended March 31, 2011 compared to $1.0 million for the same period in 2010.
Dwight V. Neese, President and CEO, said “During the first quarter, our financial performance improved but was still affected by the continued decline in real estate values in the markets we serve. While we remain cautious, we see indications that the credit cycle may have bottomed and has begun to stabilize. We continue to take a very conservative approach on all aspects of managing our loan portfolio, especially collateral valuations. While we realize the financial sector has more challenges ahead, we believe the actions we have taken over the past several years in dealing with risk management systems, loan review systems and technology improvements will have prepared us to deal with whatever issues that are yet to come. We also believe that we have aggressively identified and dealt with our problem loans and believe that the steps that we have taken will enable us to better manage our loan portfolio. We believe that our actions are appropriate in the face of the current economic environment.”
COMPANY INFORMATION
Provident Community Bancshares is the holding company for Provident Community Bank, N.A., which operates nine community oriented banking centers in the upstate of South Carolina that offer a full array of financial services. The Corporation is headquartered in Rock Hill, South Carolina and its common stock is traded on the NASDAQ Capital Market under the symbol PCBS. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com.
FORWARD-LOOKING STATEMENTS
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risk and uncertainties, which may change over time. The Corporation’s performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation’s actual results, see the Corporation’s Annual Report in Form 10-K for the year ended December 31, 2010, including in the Risk Factors section of that report. Forward-looking statements speak only as of the date they are made. The Corporation does not assume any duty and does not undertake to update its forward-looking statements.
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the three months ended March 31, 2011, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.
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Financial Highlights
(Unaudited) ($ in thousands, except per share data) |
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Three Months Ended
March 31, |
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Income Statement Data |
2011 | 2010 |
| Net interest income | $1,985 | $2,121 |
| Provision for loan losses | -- | 896 |
| Net interest income after loan loss provision | 1,985 | 1,225 |
| Non-interest income | 646 | 684 |
| Rental income/OREO properties | 174 | -- |
| Net (loss)gain on sale of investments | (4) | 677 |
| Other-than-temporary-impairment on securities | -- | (303) |
| OREO property write-downs/disposition expense | 338 | 93 |
| Non-interest expense | 2,341 | 2,246 |
| Expense (benefit) for income taxes | 11 | (74) |
| Net income | 111 | 18 |
| Accretion of preferred stock to redemption value | 2 | 2 |
| Preferred dividends accrued | 115 | 115 |
| Net Loss to common shareholders | ($6) | ($99) |
| Loss per common share: basic | ($0.003) | ($0.06) |
| Loss per common share: diluted | ($0.003) | ($0.06) |
| Weighted Average Number of | ||
| Common Shares Outstanding | ||
| Basic | 1,790,599 | 1,790,599 |
| Diluted | 1,790,599 | 1,790,599 |
|
Balance Sheet Data |
At
3/31/11 |
At
12/31/10 |
|
| Total assets | $400,263 | $408,718 | |
| Cash and due from banks | 35,920 | 24,865 | |
| Investment securities | 141,897 | 148,469 | |
| Loans | 194,472 | 206,275 | |
| Allowance for loan losses | 6,949 | 7,379 | |
| Deposits | 308,329 | 313,128 | |
| FHLB advances and other borrowings | 66,807 | 69,528 | |
| Junior subordinated debentures | 12,372 | 12,372 | |
| Total liabilities | 390,673 | 398,449 | |
| Shareholders’ equity | 9,590 | 10,269 | |
| Preferred shares outstanding | 9,266 | 9,266 | |
| Common shares outstanding | 1,790,599 | 1,790,599 | |
| Bank Regulatory Capital ratios: | |||
| Leverage ratio | 5.95% | 5.67% | |
| Tier 1 capital ratio | 9.85% | 9.75% | |
| Total risk-based capital ratio | 11.12% | 10.99% | |
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Asset Quality |
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| Non-performing loans | $21,232 | $18,826 | |
| Other real estate owned | 9,133 | 10,618 | |
| Total non-performing assets | $30,365 | $29,444 | |
| Percentage of non-performing loans to total loans | 10.92% | 9.13% | |
| Percentage of non-performing assets to total assets | 7.59% | 7.20% | |
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Allowance for loan losses to nonperforming loans |
32.73% |
39.20% |
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Allowance for loan losses to total loans |
3.58% |
3.58% |
CONTACT:
Provident Community Bancshares, Inc.
Dwight V. Neese,
803-980-1863
President & Chief Executive Officer