pab bankshares, inc. - SNL Financial

ITEM 3. LEGAL PROCEEDINGS
The nature of the business of PAB and the Bank ordinarily results in a certain amount of litigation. Accordingly, we are
party to a limited number of lawsuits incidental to our respective businesses. In our opinion, the ultimate disposition of
these matters will not have a material adverse impact on our consolidated financial position or results of operations.
PART II
ITEM 4. RESERVED
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock has been traded on NASDAQ under the symbol “PABK” since November 1, 2005. Prior to that time,
our common stock was listed since 1996 for quotation on the American Stock Exchange under the symbol “PAB”. On
February 26, 2010, there were 2,135 holders of record of our common stock.
Our ability to pay dividends is primarily dependent on earnings from operations, the adequacy of capital and the
availability of liquid assets for distribution. Our ability to generate liquid assets for distribution is primarily dependent on
the ability of the Bank to pay dividends up to the parent holding company. The payment of dividends is an integral part of
our goal to retain sufficient capital to support future growth and to meet regulatory requirements while providing a
competitive return on investment to our stockholders. When possible, it was our intent to pay out 35-50% of our net
earnings in the form of cash dividends to our stockholders on a quarterly basis. However, in the third quarter of 2008, we
suspended our quarterly dividends to shareholders due to a decline in earnings. We did not pay a dividend in 2009 and we
do not intend to pay a dividend in 2010 due to continued pressure on earnings and capital. Further, under the terms of the
Written Agreement, we are not permitted to declare or pay any dividend without the prior written approval of our
regulators. As a result, we currently cannot declare a dividend on our common shares. We do not expect to be granted a
waiver or be released from this restriction until our financial performance improves significantly. Assuming our regulators
permit us to pay dividends in the future, our ability to pay dividends will be limited by regulatory restrictions and the need
to maintain sufficient consolidated capital. For a discussion on the statutory and regulatory limitations on our ability to
pay dividends, see “Business – Supervision and Regulation.” Holders of our common stock are only entitled to receive
the dividends that our board of directors declare out of funds legally available for those payments. We can provide no
assurances regarding whether, and if so when, we will be able to resume payments of dividends in the future.
In addition, on September 4, 2009, we began exercising our right to defer quarterly interest payments on our Floating Rate
Junior Subordinated Debentures we issued to PAB Bankshares Capital Trust II, a statutory business trust created for the
sole purpose of issuing trust preferred securities and investing the proceeds in the debentures. We expect to defer the
interest payments indefinitely. During this period of deferral, we are precluded from paying dividends on our common
stock.
The following table sets forth, for the indicated periods, the high and low closing sales prices for our common stock, the
cash dividends declared, and the diluted earnings per share. All per share information prior to June 30, 2008 has been
adjusted for the 2% stock dividend paid on July 15, 2008.
Sales Price
Calendar Period High Low Dividends Earnings
2008
First Quarter $ 14.02 $ 11.59 $ 0.142 $ 0.14
Second Quarter 14.40 8.33 0.093* 0.15
Third Quarter 9.02 6.66 - (0.32)
Fourth Quarter 6.95 3.87 - (0.60)
2009
First Quarter $ 4.90 $ 1.98 $ - $ (0.03)
Second Quarter 4.20 2.51 - 0.04
Third Quarter 3.69 2.45 - (1.93)
Fourth Quarter 3.35 1.09 - (2.27)
*plus a 2% stock dividend
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