PSB Bancorp, Inc. (Nasdaq: PSBI), the holding company for First Penn Bank, today announced results from operations for the three and nine-month periods ended September 30, 2001.
The following table shows PSB Bancorp, Inc. operating highlights for the three and nine-month period ended September 30, 2001:
(Dollars in thousands except PSB Bancorp, Inc. PSB Bancorp, Inc.
per share data) Three months Nine months
ended ended
Net Interest Income $4,174 $8,665
Net Income $949 $1,939**
Basic Earnings Per Share $0.22 $0.47
Return on total assets (ROA) 0.84 % * 0.82 % *
Return on equity (ROE) 10.00 % * 6.79 % *
*Annualized
**The results of operations for the nine months do not reflect Jade Financial Corp Earnings of $721,000 for the period of January 1, 2001 through the date of acquisition. The pro forma earnings for the nine month period including Jade Financial Corp. would have been $2.7 million.
Commenting on the third quarter results, Anthony DiSandro, President and CEO of PSB Bancorp, Inc. said, "The return on assets and the double digit return on equity represent a significant improvement in our profitability and are a direct result of our acquisition of Jade Financial Corp. Inc. and other business development initiatives."
The following table contains highlights of PSB Bancorp, Inc. financial condition for the periods of September 30, 2001 and December 31, 2000 as outlined below:
Selected Financial Data
(Dollars in thousands) September 30, 2001 December 31, 2000
Total Assets $462,569 $254,819
Net Loans $313,182 $154,936
Total Deposits $403,317 $204,175
Shareholders' Equity $40,779 $35,982
The Bank's total assets increased $207.8 million or 81.55% from $254.8 million at December 31, 2000 to $462.6 million at September 30, 2001. The increase in assets was primarily due to the acquisition of the assets of Jade Financial Corp., which represented $185.1 million, or 89% of the increase. The increase in assets attributable solely to the operations of PSB was $22.7 million or 11% of the increase.
At September 30, 2001 the Bank's net loan portfolio totaled $313.2 million compared to $154.9 million at December 31, 2000. The net loan portfolio at September 30, 2001, includes $128.7 million of loans acquired from Jade Financial Corp. The increase in the net loan portfolio attributable solely to PSB is $29.6 million or 19.11%.
With the adoption of SFAS 142, "goodwill and intangible assets," on January 1, 2002, PSB will recognize as an extraordinary gain the unamortized portion of the negative goodwill associated with the recent acquisition of Jade Financial Corp. On that date, the negative goodwill is expected to approximate $1.7 million.
PSB Bancorp, Inc. will benefit in 2001 and 2002 from tax loss carryforwards from Jade Financial Corp., Inc., which approximate $390,000. These carryforwards will reduce PSB's tax expense by approximately $133,000 in both 2001 and 2002.
On October 23, 2001, PSB Bancorp announced that the Board of Directors has retained new independent accountants for the year ended December 31, 2001. The board of PSB voted unanimously to retain Grant Thornton LLP, as its independent accountants.
Anthony DiSandro, President said, "Based on the recent expansion of PSB Bancorp, Inc. through the Jade Financial acquisition and the expected future growth, we decided that we needed the services of a larger accounting firm, Grant Thornton LLP, because of their size and years of experience in servicing the financial services industry add up to the perfect fit for us."
Mr. DiSandro also stated, "We would like to thank the former auditors, Stockton Bates LLP, for the dedicated services they provided to us during the past 18 years."
First Penn Bank conducts business from its corporate offices in Center City, Philadelphia, and has 12 branch Locations throughout the five-county area as follows: three in Center City, five in South Philadelphia, one in each Montgomery, Delaware, Bucks, and Chester Counties. |
