Pioneer Bankshares, Inc. Announces 2010 - 3rd Quarter Earnings

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Oct 29, 2010, 05:04 ET

STANLEY, Va., Oct. 29 /PRNewswire-FirstCall/ -- Pioneer Bankshares, Inc. (OTC Bulletin Board: PNBI), parent company of Pioneer Bank, reported net earnings of $1.3 million for the period ending September 30, 2010, as compared to $935,000 for the same period of 2009. This represents an increase of 39.04%. Total earnings per share as of September 30, 2010 were $1.26 compared to $0.91 for the same period last year.

The Company had asset growth of approximately $6.2 million through September 30, 2010, with approximately $5.4 million being attributed to increased loan volume. Investments in securities available for sale increased by approximately $356,000 for the period ending September 30, 2010, as compared to total securities available for sale at December 31, 2009. Investments in interest bearing deposits also increased by $4.2 million for the period ending September 30, 2010, while investments in Federal Funds Sold decreased by $1.0 million for the same period compared to balances as of December 31, 2009.

The Company's deposit portfolio remains relatively stable at approximately $132.0 million as of September 30, 2010. The capital position of the Company remains above regulatory guidelines and is considered to be strong as of September 30, 2010 at $18.9 million, or 11.41% as a percentage of total assets.

The Company's book value as of September 30, 2010 was $18.35 per share, as compared to a book value of $17.40 per share as of December 31, 2009. This represents an increase of 5.46%. Shareholder dividend payments for the first three quarters of 2010 totaled $0.44 per share compared to $0.43 per share for the same period last year. This represents a year-to-date increase of 2.33% for the company's shareholders.

Management acknowledges that prevailing economic conditions may have the potential to adversely impact the Company's operational results, including future earnings, liquidity, and capital resources. Management continually monitors economic factors in an effort to promptly identify specific trends that could have a direct material effect on the Company.

Pioneer Bankshares, Inc. is a one-bank holding company headquartered in Page County, Virginia. It owns and operates Pioneer Bank with six banking locations. The Company's main branch and corporate office is located in Stanley, Virginia, with other branch locations in Shenandoah, Luray, Harrisonburg, Stanardsville, and Charlottesville, Virginia.

Additional financial information for the period ending September 30, 2010 is included below.

PIONEER BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS (In Thousands of Dollars)
			September 30,		December 31,
			2010		2009
			(Unaudited)		(Audited)
ASSETS

Cash and due from banks			$	2,936	$	5,252
Interest bearing deposits in banks				10,934		6,724
Federal funds sold				500		1,500
Securities available for sale, at fair value				13,355		12,999
Restricted securities				981		788
Loans receivable, net of allowance for loan losses of $2,291 and $1,945 respectively				130,038		124,660
Premises and equipment, net				3,407		3,582
Accrued interest receivable				711		644
Other real estate owned				250		352
Other assets				2,979		3,402

	Total Assets		$	166,091	$	159,903


LIABILITIES

Deposits
	Noninterest bearing demand		$	25,489	$	27,316
	Interest bearing
		Demand		20,066		17,381
		Savings		16,108		15,802
		Time deposits over $100,000		25,457		21,934
		Other time deposits		44,534		49,581

	Total Deposits			131,654		132,014

Accrued expenses and other liabilities				1,488		1,473
Borrowings				14,000		8,500

	Total Liabilities			147,142		141,987


STOCKHOLDERS' EQUITY

Common stock; $.50 par value, authorized 5,000,000, 1,032,418 and 1,029,466 shares outstanding, respectively				516		515
Retained earnings				18,190		17,300
Accumulated other comprehensive loss, net				243		101

	Total Stockholders' Equity			18,949		17,916

	Total Liabilities and Stockholders' Equity		$	166,091	$	159,903

PIONEER BANKSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands of Dollars, except share and per share data) (UNAUDITED)
		Nine Months Ended
		September 30,
		2010		2009
Interest and Dividend Income:
	Loans including fees	$	6,585	$	6,501
	Interest on securities - taxable		151		317
	Interest on securities - nontaxable		105		71
	Interest on deposits and federal funds sold		111		149
	Dividends		40		26
	Total Interest and Dividend Income		6,992		7,064

Interest Expense:
	Deposits		1,293		2,020
	Long term debt		80		176
	Total Interest Expense		1,373		2,196

Net Interest Income			5,619		4,868
Provision for loan losses			645		710
Net interest income after provision for loan losses			4,974		4,158

Noninterest Income:
	Service charges and fees		652		723
	Other income		234		138
	Gain (Loss) on security transactions		(54)		133
	Total Noninterest Income		832		994

Noninterest Expense:
	Salaries and benefits		1,819		1,652
	Occupancy expenses		276		260
	Equipment expenses		351		431
	Other expenses		1,456		1,450
	Total Noninterest Expenses		3,902		3,793

Income before Income Taxes			1,904		1,359
Income Tax Expense			604		424

Net Income		$	1,300	$	935

Per Share Data
	Net income, basic and diluted	$	1.26	$	0.91
	Dividends	$	0.44	$	0.43

Weighted Average Shares Outstanding, Basic and Diluted			1,030,715		1,022,185