Porter Bancorp 2Q
Porter Bancorp, Inc. /quotes/comstock/15*!pbib/quotes/nls/pbib (PBIB 11.34, +0.44, +4.04%) , parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported results for the second quarter and six months ended June 30, 2010.
“Porter Bancorp’s core operations remained solid in the second quarter of 2010 with higher net interest income, net interest margin and non-interest income, and strengthened capital base compared with the second quarter of 2009 and the first quarter of 2010,” stated Maria L. Bouvette, President and CEO of Porter Bancorp. “The growth in our core business was more than offset by a substantial increase in our provision for loan losses that resulted in our second quarter loss. We charged-off $6.3 million of nonperforming loans and wrote down $3.4 million of other real estate owned (OREO) in the second quarter to account for lower valuations on the underlying real estate collateral. We took these write-downs as part of our ongoing review of non-performing loans and OREO to reflect the continued weakness in the market and corresponding weakness in selling prices for residential lots, single family homes and other real estate properties in our markets.
– Non-performing loans decreased $11.8 million, or 19.5%, during the second quarter to $48.7 million at June 30, 2010, compared with $60.5 million at March 31, 2010. The decrease was primarily attributable to non-performing loans moving through the collection, foreclosure and disposition process.
– Non-performing assets decreased $3.0 million, or 2.5%, during the second quarter to $117.2 million at June 30, 2010.
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