PBIB Porter Bancorp, Inc. (delisted)

---

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): July 30, 2015


PORTER BANCORP, INC.
(Exact name of registrant as specified in its charter)

2500 Eastpoint Parkway, Louisville, Kentucky, 40223
(Address of principal executive offices)


(502) 499-4800
(Registrant's telephone number, including area code)

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:

⃞ 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 CONDITIONS

On July 30, 2015, Porter Bancorp, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2015. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Form 8-K and in Exhibit 99.1 attached hereto is being furnished to the Securities and Exchange Commission pursuant to Item 2.02 – Results of Operations and Financial Condition and shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

SIGNATURES

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.

EXHIBIT INDEX

Exhibit 99.1

Porter Bancorp, Inc. Reports Second Quarter 2015 Results

Continued Improvement in Asset Quality

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 30, 2015--Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, today reported unaudited results for the second quarter of 2015.

The Company reported net loss attributable to common shareholders for the second quarter of 2015 of $2.0 million, or ($0.08) per basic and diluted common share, compared with net loss attributable to common shareholders of $6.3 million, or ($0.53) per basic and diluted share, for the second quarter of 2014. Net loss attributable to common shareholders for the six months ended June 30, 2015, was $1.3 million, or ($0.06) per diluted common share, compared with net loss attributable to common shareholders of $7.3 million, or ($0.61) per diluted share, for the six months ended June 30, 2014.

Net Interest Income – Net interest income remained unchanged at $7.3 million for the second quarter of 2015 compared to the first quarter of 2015, and decreased from $7.6 million in the second quarter of 2014. Average loans decreased to $641.6 million for the second quarter of 2015 compared with $643.0 million in the first quarter of 2015 and $677.6 million in the second quarter of 2014. Net interest margin remained unchanged at 3.21% in the second quarter of 2015 compared to the first quarter of 2015, and increased from 3.13% in the second quarter of 2014 primarily driven by improving cost of funds which declined to 0.87% in the second quarter of 2015, compared with 0.91% in the first quarter of 2015 and 1.15% in the second quarter of 2014.

Allowance for Loan Losses – The allowance for loan losses to total loans was 2.59% at June 30, 2015 compared to 2.94% at March 31, 2015, and 3.91% at June 30, 2014. The reduced level of the allowance is primarily driven by improving trends in loan category risk ratings and declining historical average charge-off levels. Net loan charge-offs increased to $1.8 million for the second quarter of 2015 compared to $767,000 for the first quarter of 2015, but decreased compared to $6.6 million for the second quarter of 2014. The allowance for loan losses for loans evaluated collectively for impairment was 2.64% at June 30, 2015, compared with 3.18% at March 31, 2015, and 4.15% at June 30, 2014. Because of ongoing improvements in asset quality and management’s confidence in the assessment of risk in the loan portfolio, no provision expense was recorded during 2015.

Non-performing Assets – Non-performing assets, which include loans past due 90 days and still accruing, loans on nonaccrual, and other real estate owned (“OREO”), decreased considerably to $69.9 million, or 7.13% of total assets at June 30, 2014, compared with $80.1 million, or 7.94% of total assets at March 31, 2015, and $101.3 million, or 9.69% of total assets at June 30, 2014.

Non-performing loans decreased to $30.3 million, or 4.67% of total loans, at June 30, 2015, compared with $36.5 million, or 5.77% of total loans at March 31, 2015 and $44.4 million, or 6.9% of total loans at June 30, 2014. The decrease from the previous quarter was primarily driven by $5.3 million in principal payments received on nonaccrual loans, $608,000 of nonaccrual loans migrating to OREO, and $2.1 million of charge-offs.

OREO at June 30, 2015 decreased to $39.5 million, compared with $43.6 million at March 31, 2015 and $56.9 million at June 30, 2014. The Company acquired $608,000 in OREO and sold $2.4 million in OREO during the second quarter of 2015. Fair value write-downs arising from reductions in listing prices for certain properties as well as updated appraisals totaled $2.3 million in the second quarter of 2015, compared with $300,000 in the first quarter of 2015 and $400,000 in the second quarter of 2014. Progress continues to be made in the disposition of OREO. Currently, $12.7 million of OREO property is subject to a contract for sale or letter of intent.

In addition to nonaccrual loans and OREO, loans classified as Troubled Debt Restructures (TDRs) and on accrual totaled $18.5 million at June 30, 2015, compared to $18.8 million at March 31, 2015 and $32.4 million at June 30, 2014.

Non-interest Income – Non-interest income decreased $1.1 million to $1.6 million for the second quarter of 2015, compared with $2.7 million for the first quarter of 2015, and increased $616,000 compared with $949,000 for the second quarter of 2014. The decline in non-interest income was driven primarily by a reduction in gains on the sales of securities which totaled $199,000 in the second quarter of 2015, compared to $1.5 million in the first quarter of 2015. The increase from the second quarter of 2014 was due to an increase in gains on the sales of securities of $197,000, and an increase in OREO rental income of $354,000.

Non-interest Expense – Non-interest expense increased $1.6 million to $11.0 million for the second quarter of 2015, compared with $9.4 million for the first quarter of 2015, and increased $1.2 million compared with $9.8 million for the second quarter of 2014. The increase from the first quarter of 2015 was primarily due to an increase in OREO expenses of approximately $2.2 million, partially offset by decreases in professional fees and other non-interest expenses. OREO expenses increased primarily due to an increase in fair value write-downs of $2.0 million resulting from declines in the fair value of the real estate based upon reductions in listing prices for certain properties as well as updated appraisals.

Capital – At June 30, 2015, PBI Bank’s Tier 1 leverage ratio improved slightly to 5.95% compared with 5.84% at March 31, 2015, and its Total risk-based capital ratio was 10.34% at June 30, 2015 compared with 10.26% at March 31, 2015, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order. At June 30, 2015, Porter Bancorp’s leverage ratio was 4.25% compared with 4.13% at March 31, 2015, and its Total risk-based capital ratio was 10.25%, compared with 10.00% at March 31, 2015. At June 30, 2015, PBI Bank’s Common equity Tier I risk-based capital ratio was 8.43% compared with 8.32% at March 31, 2015, and Porter Bancorp’s Common equity Tier I risk-based capital ratio was 4.42% compared with 4.68% at March 31, 2015.

Management and the Board of Directors remain committed to evaluating and implementing appropriate strategies for increasing the Company’s capital in order to meet the capital requirements of the Consent Order.

Tax Benefit Preservation Plan - On June 24, 2015, the Board of Directors approved the adoption of a tax benefits preservation plan designed to preserve the value of certain of the Company’s deferred tax assets primarily associated with net operating loss carryforwards (NOLs) under Section 382 of the Internal Revenue Code.

NOLs can generally be used to offset future taxable income and therefore reduce federal income tax obligations. However, the Company’s ability to use its NOLs would be limited if there was an “ownership change” under Section 382. This would occur if shareholders owning (or deemed to own under the tax rules) 5% or more of the Company’s stock increase their aggregate ownership of the Company by more than 50 percentage points over a defined period of time. The plan is intended to reduce the likelihood of an “ownership change” occurring as a result of the buying and selling of the Company’s common stock.

The primary purpose of the tax preservation plan is to protect the value of our NOLs for our shareholders. While our net deferred tax asset of $51.9 million at June 30, 2015 is subject to a full valuation allowance, it remains very important to the Company.

In connection with the plan, the Company declared a dividend of one preferred stock purchase right for each share of common stock outstanding as of the close of business on July 10, 2015. Any shareholder or group that acquires beneficial ownership of 5 percent or more of the Company (an “acquiring person”) could be subject to significant dilution in its holdings if the Board of Directors does not approve such acquisition. Existing shareholders holding 5 percent or more of the Company will not be considered acquiring persons unless they acquire additional shares, subject to certain exceptions described in the plan. In addition, in its discretion, the Board of Directors may exempt certain transactions and certain persons whose acquisition of securities is determined by the Board not to jeopardize the Company’s deferred tax assets. The rights will expire on July 29, 2018 or earlier in certain circumstances.

Additional information regarding the plan was provided on June 29, 2015 in a Current Report on Form 8-K and in a Registration Statement on Form 8-A filed with the Securities and Exchange Commission.

PBIB-G

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.

Additional Information
Unaudited supplemental financial information for the first quarter ending June 30, 2015 follows.

CONTACT:
Porter Bancorp, Inc.
John T. Taylor, 502-499-4800
Chief Executive Officer