PB Financial Corporation Reports Second Quarter 2020 Earnings

ROCKY MOUNT, NC / ACCESSWIRE / July 13, 2020 / Ted E. Whitehurst, President and CEO of PB Financial Corporation (OTCQX:PBNC)(the “Company”), the holding company for Providence Bank, reported net income for the quarter ended June 30, 2020, of $1,658,212 compared to $1,831,151 for the same period in 2019, a decrease of 9.44%. For the six-month period ended June 30, 2020, net income was $3,174,150 compared to $3,484,912 for the same period in 2019, a decrease of 8.92%.

As of June 30, 2020, the Company reported total assets of $563.9 million compared to $471.6 million at June 30, 2019, an increase of 19.57%. Total deposits were $426.7 million and gross loans were $443.8 million at the end of the second quarter of 2020, compared to total deposits of $365.5 million and gross loans of $379.3 million at the end of the second quarter of 2019, increases of 16.74% and 17.01% respectively.

Whitehurst commented, “Over the first six months of the year, we continued to grow assets, loans, deposits and capital. However, we have had declines in our net interest margin along with an increase of $355,000 in our loan loss provision, both of which are due to the effects of the pandemic. Our balance sheet remains strong and well positioned for the continued economic effects of COVID-19.”

For the six-month period ended June 30, 2020, the Company had basic earnings of $1.43 per share compared to $1.60 per share for the same period last year, a decrease of 10.63%. As of June 30, 2020, the book value per common share was $25.46 compared to $22.98 at June 30, 2019, an increase of 10.79%. On August 24, 2020, the Company will pay its third quarter dividend of $0.21 per share for each share of common stock outstanding. This will be the 35^th consecutive quarterly cash dividend paid.

Providence Bank is a state-chartered community bank headquartered at 450 N. Winstead Avenue in Rocky Mount, North Carolina, with branches in Rocky Mount, Tarboro, Nashville and Wilson.

www.pbknc.com

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding PB Financial Corporation. Those statements may include but are not limited to statements regarding the Company’s plans, objectives, expectations and intentions and other statements identified by words such as “believes,” “considers,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “projects,” “would be,” and similar expressions. These statements are based upon current beliefs and expectations of management of PB Financial Corporation and are subject to significant risks and uncertainties. Actual or future results or events may differ from those set forth in the forward-looking statements. PB Financial Corporation does not undertake to update any forward-looking statements in this press release. The information as of and for the quarters ended June 30, 2020 and June 30, 2019 as presented are unaudited.

For more information, contact:
Ted E. Whitehurst, President and CEO
252-467-2990; twhitehurst@pbknc.com

PB Financial Corporation
Consolidated Balance Sheets and Statements of Operations

Balance Sheets	June 30,			December 31,
In Thousands	2020			2019
Assets	(unaudited)				*
Cash and due from banks	$	6,844		$	5,816
Interest-earning deposits with banks		55,761			38,742
Investment securities		30,002			19,733
Loans, gross		443,815			387,248
Allowance for loan losses		(4,282	)		(3,602	)
Other assets		31,718			30,403
Total assets	$	563,858		$	478,340

Liabilities and
Shareholders’ Equity
Deposits	$	426,663		$	354,346
Borrowed funds		76,015			66,894
Other liabilities		4,714			3,149
Shareholders’ Equity		56,466			53,951
Total liabilities and
shareholders’ equity	$	563,858		$	478,340

Book value per share	$	25.46		$	24.38

Statements of Operations	For the three months ended				For the six months ended
In Thousands	June		June		June		June
	2020		2019		2020		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Interest income	$	5,693	$	5,787	$	11,659	$	11,277
Interest expense		1,639		1,460		3,288		2,839
Net interest income		4,054		4,327		8,371		8,438
Provision for loan losses		238		76		713		223
Net interest income after
provision for loan losses		3,816		4,251		7,658		8,215
Non interest income		195		209		404		457
Non interest expense		1,884		2,106		3,975		4,187
Income before income taxes		2,127		2,354		4,087		4,485
Income tax expense		469		523		913		1,000
Net income	$	1,658	$	1,831	$	3,174	$	3,485

Net income per common share – basic	$	0.74	$	0.84	$	1.43	$	1.60

* Derived from audited financial statements