pab bankshares, inc. - SNL Financial

PART I
ITEM 1. BUSINESS
General
PAB is a bank holding company headquartered in Valdosta, Lowndes County, Georgia. PAB was organized and
incorporated in 1982 under the laws of the State of Georgia as the holding company for The Park Avenue Bank (the
“Bank”). Since our incorporation in 1982, we have acquired five other Georgia financial institutions and one Florida
financial institution, and subsequently merged those institutions into the Bank. The Bank was founded in Valdosta in
1956, and it became a state-chartered commercial bank in 1971. In 2001, the Bank became a state member bank of
the Federal Reserve System. Currently, the Bank operates 13 branches located in seven counties in South Georgia;
four branches located in three counties in North Georgia; and one branch located in Ocala, Florida. On February 23,
2010, we entered into a Purchase and Assumption Agreement whereby we agreed to sell five of our branches in South
Georgia to HeritageBank of the South. The closing of the transaction is subject to regulatory approval and other
customary closing conditions and is expected to be completed in the second quarter of 2010. Additional information
on each of the markets that we serve is provided below under the caption “Markets and Competition.”
Unless the context indicates otherwise, all references in this report to “PAB,” “we,” “us” and “our” refer to PAB
Bankshares, Inc. and our wholly owned subsidiary, The Park Avenue Bank, except that in the discussion of our capital
stock and related matters, these terms refer solely to PAB Bankshares, Inc. and not to its subsidiary. All references to
the “Bank” refer to The Park Avenue Bank only.
The Bank
The Bank offers traditional banking products and services to commercial and individual customers in our markets.
Our product line includes, among other things, loans to small- and medium-sized businesses, residential and
commercial construction and development loans, commercial real estate loans, farmland and agricultural production
loans, residential mortgage loans, home equity loans, consumer loans, and a variety of commercial and consumer
demand, savings and time deposit products. We also offer internet banking, on-line cash management, electronic bill
payment services, safe deposit box rentals, telephone banking, credit and debit card services, remote depository
products and the availability of a network of ATMs to our customers. In addition, through an agreement with a thirdparty
broker-dealer and investment advisory firm, we are able to offer securities brokerage and investment advisory
services to our customers.
Markets and Competition
The financial services industry is highly competitive. In our markets, we face competitive pressures from both larger
regional banks and smaller community banks and thrifts in attracting and retaining commercial and consumer
accounts. The competitive environment is amplified in some of our smaller markets as there are more financial
service providers competing for fewer customers. The principal factors in competing for such accounts include
interest rates, fee structures, the range of products and services offered, convenience of office and ATM locations, and
flexible office hours. Other competition for such accounts comes from credit unions, internet banks, retail brokerage
firms, mortgage companies, insurance companies and consumer finance offices. Other investment alternatives such as
stocks and mutual funds made readily accessible by the internet have also had an effect on our ability to grow deposits
in our markets.
When it comes to competing with the larger financial institutions in our markets, we believe that our people make the
difference. Our experience and strong community relationships in our markets allow us to deliver a higher level of
customer service to the small- and medium-sized commercial businesses and to individual consumers. Being smaller
and less bureaucratic than our regional and national competitors allows us to provide a more timely response and
greater flexibility in serving the needs of our customers. At the same time, we have invested in systems and support to
provide a product line that we believe gives us a competitive edge over many of the smaller financial institutions in
our markets.
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