PBIB Porter Bancorp, Inc. (delisted)

Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with offices in Louisville, Shepherdsville, Glasgow, Bowling Green and throughout central Kentucky, today reported results for the first quarter ended March 31, 2007. The Company reported net income for the first quarter of 2007 of $3.6 million, or $0.47 per share, compared with $3.4 million, or $0.54 per share, for the first quarter of 2006. Highlights Net income increased 5.8% to $3.6 million for the first quarter of 2007 compared with $3.4 million for the first quarter of 2006. Total assets increased 14.1% to $1.12 billion since the first quarter of 2006. Loans grew 14.7% to $926.7 million compared with the first quarter of 2006. Deposits grew 10.8% since the first quarter of 2006. The Bank�s core customer non-interest bearing deposit accounts increased from $59.8 million to $65.5 million, or 9.5%, during the quarter. The efficiency ratio for the first quarter of 2007 improved to 45.4% from 48.1% in the first quarter of 2006. We expanded our presence to Bowling Green, Kentucky by opening a loan production office during March 2007 and recruiting an experienced lending and product team with an established customer base. �Loan growth accelerated in the first quarter with an 8.5% increase in our loan portfolio from year end,� stated Maria L. Bouvette, President and CEO of Porter Bancorp, Inc. �We benefited from increased demand across our markets and expect our new loan production office in Bowling Green to contribute to further loan growth in 2007. During the first quarter, we implemented our deposit growth initiatives, which we believe contributed to our 9.5% increase in core customer non-interest bearing deposits during the first quarter. We believe the new deposit growth initiatives will be an important part in funding future loan growth and improving margins in the future.� Net Interest Income Net interest income was $9.7 million for the three months ended March 31, 2007, an increase of $700,000, or 7.7%, compared with $9.0 million for the same period in 2006. This increase was attributable to the growth in our loan portfolio, partially offset by the reduction in net interest margin reflecting the effect of a flat yield curve. Net interest margin for the first quarter of 2007 remained strong at 3.92% compared with 3.95% for the first quarter of 2006. On a linked quarter basis, net interest margin increased 2 basis points over our margin of 3.90% in the fourth quarter of 2006. We believe that our asset/liability management strategies have us well positioned in this flattened yield curve environment and should serve us well should the Federal Reserve raise or lower short-term interest rates. Non-Interest Income Non-interest income was $1.2 million in the first quarter of 2007 compared with $1.4 million in the first quarter of 2006. The decrease in non-interest income was primarily attributable to decreased gains on the sale of government guaranteed loans. Government guaranteed loan sales are cyclical in nature and require significant lead times. We also experienced a decrease in service charges on deposit accounts. This decrease was a result of changes in product fee structures that the Company believes will make certain products more competitive, thereby increasing product sales over time. Non-Interest Expense Non-interest expense decreased $54,000, or 1.1%, in the first quarter of 2007 compared with the first quarter of 2006. The decrease in non-interest expense was primarily attributable to reduced occupancy, equipment, and communications expenses, and was partially offset by slight increases in salaries and employee benefits. Our diligent focus on expense control resulted in an improved efficiency ratio of 45.4% for the first quarter of 2007 compared with 48.1% for the first quarter of 2006. Our efficiency ratio could increase modestly in future quarters as we make investments to grow into new markets. Balance Sheet Review Total assets increased 6.5% to $1.12 billion at March 31, 2007, from $1.05 billion at December 31, 2006. The Company�s loan portfolio increased 8.5% to $926.7 million from $854.4 million at December 31, 2006, primarily due to in-house loan origination efforts of our lending staff. Deposits at March 31, 2007, increased 4.1% to $897.5 million from $861.9 million at December 31, 2006, primarily due to an increase in both time deposits and transactional accounts from promotional efforts throughout the period. The core customer non-interest bearing deposit account growth of $5.7 million during the quarter is attributable to our new deposit growth focus which includes new incentives for our employees and product improvements. Total assets increased $68.7 million during the quarter. Net loans increased $72.0 million and cash, federal funds sold and interest bearing deposits decreased $5.7 million. Asset growth was funded by growth in money market deposit accounts of $18.2 million, certificates of deposit accounts of $16.3 million, and Federal Home Loan Bank advances of $29.4 million. Asset Quality Nonperforming loans at March 31, 2007, were $8.3 million, or 0.89% of total loans, compared with $8.6 million, or 1.06% of total loans at March 31, 2006, and $8.9 million, or 1.05% of total loans at December 31, 2006. The decrease of $678,000 in nonperforming loans from December 31, 2006 to March 31, 2007, is primarily attributable to our collection efforts via foreclosure and collateral repossession. Foreclosed properties at March 31, 2007, were $2.7 million compared with $1.9 million at March 31, 2006, and $2.4�million at December 31, 2006. The increase in foreclosed properties reflects the normal progression of troubled loans through workout, collateral repossession, and ultimate disposition. We value foreclosed properties at fair or net recoverable value when acquired and expect to liquidate these properties to recover our investment in the due course of business. Our loan loss reserve as a percentage of total loans at March 31, 2007, decreased to 1.43% from 1.56% at March�31, 2006, and 1.50% at December 31, 2006. Provision for loan losses increased $249,000 to $625,000 for the first quarter of 2007 compared with the first quarter of 2006 and $249,000 compared with the fourth quarter of 2006. The loan loss provision for the first quarter of 2007 was unusually large due to the outstanding growth in the loan portfolio requiring a larger than usual provision to remain consistent with historical experience. Net loan charge-offs for the first quarter of 2007 were $246,000, or 0.03% of total loans, compared with $6,000, or 0.001% for the first quarter of 2006, and $199,000, or .02% for the fourth quarter of 2006. We assess the adequacy of our loan loss reserve each quarter and make the appropriate provision for loan losses based on that assessment. 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. These forward-looking statements are based on management�s current expectations. Porter Bancorp�s actual results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed 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. Additional Information Unaudited supplemental financial information for the first quarter ending March 31, 2007 follows. PORTER BANCORP, INC. AND SUBSIDIARY Unaudited Financial Information (in thousands, except share and per share data) � Three Three Three Months Months Months Ended Ended Ended 3/31/07� 12/31/06� 3/31/06� � � � Income Statement Data Interest income $ 20,054� $ 19,365� $ 16,987� Interest expense � 10,310� � 9,857� � 7,943� � � Net interest income 9,744� 9,508� 9,044� Provision for loan losses 625� 376� 376� � Service charges on deposit accounts 535� 574� 665� Gains on sales of government guaranteed loans, net -� -� 99� Gains on sales of loans originated for sale, net -� -� 111� Gains on sales of other assets, net 6� (28� ) 18� Other � 635� � 637� � 473� � � Non-interest income 1,176� 1,183� 1,366� � Salaries & employee benefits 2,935� 2,798� 2,837� Occupancy and equipment 565� 502� 688� Franchise tax 325� 267� 273� Communications expense 110� 107� 146� Advertising 139� 178� 129� Write-off of unamortized debt issue costs -� 280� -� Other � 882� � 713� � 937� � � Non-interest expense 4,956� 4,845� 5,010� � Income before income taxes 5,339� 5,470� 5,024� Income tax expense � 1,738� � 1,773� � 1,621� � � Net income $ 3,601� $ 3,697� $ 3,403� � � � Weighted average shares (basic & diluted) 7,582,819� 7,582,447� 6,332,447� � Basic and diluted earnings per share $ 0.47� $ 0.48� $ 0.54� Cash dividends declared per share $ 0.20� $ 0.20� $ 0.20� PORTER BANCORP, INC. AND SUBSIDIARY Unaudited Financial Information (in thousands, except share and per share data) � � Three Three Three Months Months Months Ended Ended Ended 3/31/07� 12/31/06� 3/31/06� � � � Average Balance Sheet Data Assets $ 1,066,894� $ 1,024,526� $ 987,381� Loans 891,591� 835,265� 797,919� Earning assets 1,016,964� 974,539� 938,684� Deposits 875,568� 830,746� 810,056� Long-term debt and advances 72,853� 79,514� 82,242� Interest bearing liabilities 881,771� 847,865� 841,488� Stockholders� equity 110,235� 105,633� 73,541� � � Performance Ratios Return on average assets 1.37% 1.43% 1.40% Return on average equity 13.25� 13.89� 18.77� Yield on average earning assets (tax equivalent) 8.03� 7.92� 7.38� Cost of interest bearing liabilities 4.74� 4.61� 3.83� Net interest margin (tax equivalent) 3.92� 3.90� 3.95� Efficiency ratio 45.38� 45.32� 48.13� � Loan Charge-off Data Loans charged-off $ (314) $ (262) $ (77) Recoveries � 68� � 63� � 71� � � � Net charge-offs $ (246) $ (199) $ (6) PORTER BANCORP, INC. AND SUBSIDIARY Unaudited Financial Information (in thousands, except share and per share data) � As of As of As of 3/31/07� 12/31/06� 3/31/06� � � � Assets Loans $ 926,747� $ 854,367� $ 807,736� Loan loss reserve � (13,211) � (12,832) � (12,567) � � � Net loans 913,536� 841,535� 795,169� Securities available for sale 97,463� 95,090� 100,419� Federal funds sold & interest bearing deposits 6,042� 40,957� 13,084� Cash and due from financial institutions 44,553� 15,306� 15,792� Premises and equipment 13,808� 13,774� 14,254� Goodwill 12,881� 12,881� 12,881� Accrued interest receivable and other assets � 31,462� � 31,463� � 29,632� � � � Total Assets $ 1,119,745� $ 1,051,006� $ 981,231� � � � � Liabilities and Equity Certificates of deposit $ 673,017� $ 656,691� $ 637,173� Interest checking 49,600� 50,840� 52,277� Money market 79,823� 61,666� 32,722� Savings � 25,041� � 23,479� � 22,843� � � � Total interest bearing deposits 827,481� 792,676� 745,015� Demand deposits � 69,998� � 69,180� � 64,949� � � � Total deposits 897,479� 861,856� 809,964� Federal funds purchased & repurchase agreements 1,473� 1,134� 1,549� Notes payable -� -� 9,600� FHLB advances 77,007� 47,562� 53,569� Junior subordinated debentures 25,000� 25,000� 25,000� Accrued interest payable and other liabilities � 8,227� � 7,108� � 7,581� � � � Total liabilities 1,009,186� 942,660� 907,263� Stockholders� equity � 110,559� � 108,346� � 73,968� � � � Total Liabilities and Stockholders� Equity $ 1,119,745� $ 1,051,006� $ 981,231� � � � � Ending shares outstanding 7,621,647� 7,622,447� 6,372,047� Book value per share $ 14.51� $ 14.21� $ 11.61� Tangible book value per share 12.73� 12.45� 9.60� � Asset Quality Data Loan 90 days or more past due still on accrual $ 769� $ 2,010� $ 2,728� Non-accrual loans � 7,493� � 6,930� � 5,874� � � � Total non-performing loans 8,262� 8,940� 8,602� Real estate acquired through foreclosures 2,702� 2,415� 1,926� Other repossessed assets � 9� � 9� � 1� � � � Total non-performing assets $ 10,973� $ 11,364� $ 10,529� � � � Non-performing loans to total loans 0.89% 1.05% 1.06% Non-performing assets to total loans 1.18� 1.33� 1.30� Allowance for loan losses to non-performing loans 159.90� 143.53� 146.09� Allowance for loan losses to total loans 1.43� 1.50� 1.56� � Risk-based Capital Ratios Tier I leverage ratio 11.58% 11.86% 8.83% Tier I risk-based capital ratio 13.42� 14.32� 10.89� Total risk-based capital ratio 14.67� 15.57� 12.16� FTE employees 221� 218� 221� PBIB-F PBIB-G