Porter Bancorp Announces Appellate Court Affirms Ruling
December 02 2016 - 12:10PM
Business Wire
Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of
PBI Bank, today announced that the Kentucky Court of Appeals
ruled against the Bank in a decision with a partial dissenting
opinion in the PBI Bank, Inc. v. Signature Point LLC, et al. matter
upholding the previous award of $7.015 million in damages.
John T. Taylor, President and CEO noted, “We are very
disappointed with the Court’s decision regarding this legacy issue.
However, the Bank’s capital and liquidity remain strong and its
mission to serve our customers remains unchanged. At this juncture,
we are conferring with our legal advisors and evaluating the merits
of further pursuing the appellate process.”
The Bank previously accrued the compensatory damages of the
trial court verdict along with interest at the statutory rate. The
punitive damages and statutory interest currently totaling
approximately $7.9 million were not previously accrued and will
impact earnings and capital in the fourth quarter of 2016. While
the Bank has made no final decision on how it will proceed, funds
to retire all amounts due are on hand and available to meet this
obligation with no material impact to liquidity.
The following table indicates as reported data as of September
30, 2016 and the pro-forma impact of this decision.
Actual
Pro-forma Pro-forma Selected Balance Sheet
Data: 9/30/2016 Impact 9/30/2016 Cash, due
from banks, and unpledged AFS securities 167,577 (10,100 ) 157,477
Accrued interest payable and other liabilities 7,721 (2,200
) 5,521 Preferred stockholders’ equity 2,771 - 2,771 Common
stockholders’ equity 40,850 (7,900 ) 32,950 Stockholders’ equity
43,621 (7,900 ) 35,721 Ending shares outstanding 31,114,969
31,114,969 31,114,969 Book value per common share 1.31 (0.25 ) 1.06
Tangible book value per common share 1.31 (0.25 ) 1.05
Actual Pro-forma
Selected Balance Sheet Data: 9/30/2016
9/30/2016 Risk-based Capital Ratios - Company
Tier I leverage ratio 6.21 5.18 Common Equity Tier 1 Capital 6.37
5.19 Tier I risk-based capital ratio 8.48 7.00 Total risk-based
capital ratio 11.57 10.39
Risk-based Capital Ratios -
Bank Tier I leverage ratio 6.97 6.17 Common Equity Tier 1
Capital 9.53 8.35 Tier I risk-based capital ratio 9.53 8.35 Total
risk-based capital ratio 11.18 10.00
The share count and per share data in the table above does not
reflect the previously announced 1 for 5 reverse stock split that
will be effective at the close of business on December 16,
2016.
About Porter Bancorp, Inc.
Porter Bancorp, Inc. (NASDAQ: PBIB) is a Louisville,
Kentucky-based bank holding company which operates banking centers
in 12 counties through its wholly-owned subsidiary PBI Bank. Our
markets include metropolitan Louisville in Jefferson County and the
surrounding counties of Henry and Bullitt, and extend south along
the Interstate 65 corridor. We serve southern and south central
Kentucky from banking centers in Butler, Green, Hart, Edmonson,
Barren, Warren, Ohio and Daviess counties. We also have a banking
center in Lexington, Kentucky, the second largest city in the
state. PBI Bank is a traditional community bank with a wide range
of personal and business banking products and services.
Forward-Looking Statements
Statements in this press release relating to Porter Bancorp’s
plans, objectives, expectations or future performance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “believe,”
“may,” “should,” “anticipate,” “estimate,” “expect,” “intend,”
“objective,” “possible,” “seek,” “plan,” “strive” or similar words,
or negatives of these words, identify forward-looking statements.
These forward-looking statements are based on management’s current
expectations. Porter Bancorp’s actual results in future periods may
differ materially from those indicated by forward-looking
statements due to various risks and uncertainties, including our
ability to reduce our level of higher risk loans such as commercial
real estate and real estate development loans, reduce our level of
non-performing loans and other real estate owned, and increase net
interest income in a low interest rate environment, as well as our
need to increase capital. These and other risks and uncertainties
are described in greater detail under “Risk Factors” in the
Company’s Form 10-K and subsequent periodic reports filed with the
Securities and Exchange Commission. The forward-looking statements
in this press release are made as of the date of the release and
Porter Bancorp does not assume any responsibility to update these
statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20161202005576/en/
Porter Bancorp, Inc.John T. Taylor, 502-499-4800Chief Executive
Officer
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