pab bankshares, inc. - SNL Financial

More documents

Recommendations

Info

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2. REGULATORY OVERSIGHT, CAPITAL ADEQUACY, OPERATING LOSSES, LIQUIDITY AND MANAGEMENT’S PLANS (Continued) Operating Losses The Company incurred a net loss of $51.2 million for the year ended December 31, 2009. This loss was largely the result of increases in non-performing assets, which caused the Company to record increased provisions for loan losses, carrying costs on foreclosed properties and losses on the sale of foreclosed properties, and other non-recurring accounting adjustments. Carrying costs on foreclosed assets are expected to remain elevated during 2010 as the Company works towards liquidation of these non-performing assets. Margin compression also contributed to the net loss for 2009. In addition, during the fourth quarter of 2009, the Company recorded a $6.0 million goodwill impairment charge and a deferred tax valuation allowance of $11.1 million. Liquidity The Bank’s primary sources of liquidity are provided by its deposits, the scheduled repayments on its loans, and interest and maturities of its investments. Cash and due from banks and federal funds sold can also be utilized to meet liquidity needs. At December 31, 2009, the Bank had approximately $142.7 million, or approximately 12% of its total assets, in cash balances on account at the Federal Reserve. All securities have been classified as available for sale, which means they are carried at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of other comprehensive income. If necessary, the Bank has the ability to sell a portion of its unpledged investment securities to manage its interest rate sensitivity or liquidity. Unpledged securities totaled $20.2 million at December 31, 2009. Since the Bank is not considered “well capitalized” as of December 31, 2009, it is unable to accept, rollover, or renew any brokered deposits without prior regulatory approval. Approximately $53.3 million of the Bank’s existing brokered deposits are scheduled to mature in 2010. Based on current and expected liquidity needs and sources, the Company expects to be able to meet its obligations through December 31, 2010. NOTE 3. RESTRICTIONS ON CASH AND BALANCES DUE FROM BANKS The Bank is required to maintain reserve balances in cash or on deposit with correspondent banks and the Federal Reserve Bank of Atlanta, based on a percentage of deposits. The total of those reserve balances was approximately $16,579,000 and $6,992,000 at December 31, 2009 and 2008, respectively. 72
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4. INVESTMENT SECURITIES The amortized cost and fair value of securities with gross unrealized gains and losses are summarized as follows: Securities Available for Sale December 31, 2009: Debt securities: U.S. Government-sponsored enterprises (GSEs) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value $ 30,452,647 $ 262,292 $ (247,182) $ 30,467,757 State and municipal securities 9,997,494 117,577 (393,701) 9,721,370 Corporate 4,027,832 - (198,492) 3,829,340 Mortgage-backed GSE residential 65,585,084 1,379,928 (217,795) 66,747,217 Private-label residential 606,719 - (5,271) 601,448 Private-label commercial 176,449 - (2,468) 173,981 Total securities available for sale $ 110,846,225 $ 1,759,797 $ (1,064,909) $ 111,541,113 Securities Available for Sale December 31, 2008: Debt securities: U.S. Government-sponsored Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value enterprises (GSEs) $ 34,425,092 $ 878,996 $ (947) $ 35,303,141 State and municipal securities 31,591,669 151,276 (1,381,782) 30,361,163 Corporate 7,456,382 69,975 (561,857) 6,964,500 Mortgage-backed GSE residential Private-label residential 99,167,402 800,188 3,196,157 - (1,678) (80,184) 102,361,881 720,004 Private-label commercial 338,951 - (7,384) 331,567 Total debt securities 173,779,684 4,296,404 (2,033,832) 176,042,256 Marketable equity securities 568,894 2,261 - 571,155 Total securities available for sale $ 174,348,578 $ 4,298,665 $ (2,033,832) $ 176,613,411 73
Page 1 and 2:
2009 Annual Report
Page 3 and 4:
UNITED STATES SECURITIES AND EXCHAN
Page 5 and 6:
TABLE OF CONTENTS Item Page Caution
Page 7 and 8:
PART I ITEM 1. BUSINESS General PAB
Page 9 and 10:
North Georgia During the fourth qua
Page 11 and 12:
Supervision and Regulation The bank
Page 13 and 14:
Payment of Dividends PAB is a legal
Page 15 and 16:
An institution that is categorized
Page 17 and 18:
USA Patriot Act of 2001 In October
Page 19 and 20:
If our allowance for loan losses is
Page 21 and 22:
Our net interest income could be ne
Page 23 and 24: We may need to raise additional cap
Page 25 and 26: If we fail to continue to meet all
Page 27 and 28: Performance Graph The following gra
Page 29 and 30: GAAP Reconciliation and Management
Page 31 and 32: The three primary reasons for this
Page 33 and 34: At December 31, 2009, commercial re
Page 35 and 36: Average Balances, Interest and Yiel
Page 37 and 38: Loan Portfolio We make both secured
Page 39 and 40: A summary of loans from each market
Page 41 and 42: The following table summarizes our
Page 43 and 44: The first component of the allowanc
Page 45 and 46: Summary of Loan Loss Experience The
Page 47 and 48: The following table summarizes our
Page 49 and 50: On September 4, 2009, the Company b
Page 51 and 52: Provision for Loan Losses The provi
Page 53 and 54: Income Taxes The provision for inco
Page 55 and 56: We have reduced the level of asset-
Page 57 and 58: MANAGEMENT’S REPORT ON INTERNAL C
Page 59 and 60: Because of its inherent limitations
Page 61 and 62: PAB BANKSHARES, INC. AND SUBSIDIARI
Page 69 and 70: NOTES TO CONSOLIDATED FINANCIAL STA
Page 73: NOTES TO CONSOLIDATED FINANCIAL STA
Page 109 and 110: JAMES W. GODBEE, JR Certified Publi
Page 111 and 112: KENNITH D. MCLEOD Certified Public
Page 113 and 114: The Audit Committee is a separately
Page 115 and 116: SECTION 16(a) BENEFICIAL OWNERSHIP
Page 117 and 118: Compensation Benchmarks and Use of
Page 119 and 120: The following table summarizes in t
Page 121 and 122: Base Salaries The Company’s philo
Page 123 and 124: The following table summarizes in t
Page 125 and 126:
(1) The listed stock option grants
Page 127 and 128:
Potential Payments Upon Termination
Page 129 and 130:
The following table summarizes in t
Page 131 and 132:
(5) Includes 1,659,310 shares owned
Page 133 and 134:
All related party transactions set
Page 135 and 136:
10.5 Rescission Agreement, dated De
Page 137 and 138:
SIGNATURES Pursuant to the requirem
Page 139 and 140:
Shareholder Information Corporate O
show all

pab bankshares, inc. - SNL Financial

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?