PREM Premier Comm Bankshares (MM)

Premier Community Bankshares, Inc. Announces 22% Earnings Increase for the First Six Months WINCHESTER, Va., July 12 /PRNewswire-FirstCall/ -- Premier Community Bankshares, Inc. (NASDAQ:PREM) reported net income of $3.4 million for the first six months of 2005, an increase of 22% or $610 thousand over the net income for the corresponding period of 2004. Diluted earnings per share were $0.68, an increase of 21% from the $0.56 per share for the first half of 2004. The return on equity was 15.06% and the return on assets was 1.15%. In comparison, the first half of 2004 generated a return on equity and assets of 14.09% and 1.15%, respectively. For the second quarter of 2005, the return on equity was 15.18% and the return on assets was 1.15% as compared to a return on equity of 14.81% and a return on assets of 1.17% for the second quarter of 2004. Net income for the second quarter of 2005 was $1.8 million, an increase of 18% or $270 thousand over the net income for the corresponding period of 2004. Total assets for the company as of June 30, 2005 were $624.5 million, a gain of $81.3 million or 15.0% over the first six months of 2004. Net loans outstanding grew by $84.8 million or 19.0% and accounted for the majority of the asset growth. The increase in net income is attributable in large part to the interest income and corresponding fees derived from the growth in loans. The increase in loans was funded by a $75.7 million increase in deposits and a $6.5 million decrease in federal funds sold. Total deposits equaled $530.7 million, an increase of $75.7 million or 16.6% over the first half of 2004. Other income of $2.2 million was as a result of fees on a growing asset and deposit base while other expenses increased due to personnel expenses and equipment needed to service an expanding customer base and the anticipated opening of Premier Bank of West Virginia. Premier Bank of West Virginia will be the third bank in the holding company, and is expected to open on July 18, 2005. Premier Community Bankshares is a growing multi-bank holding company that operates 16 offices in the Shenandoah Valley region located in the northwestern part of Virginia. The Corporation's two subsidiary banks of Rockingham Heritage Bank and The Marathon Bank serve an increasingly diversified market with a growing population. The Corporation also operates a loan production office in the eastern panhandle of West Virginia, which will become Premier Bank of West Virginia. This press release may contain forward-looking statements, as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors deemed appropriate under the circumstances. Actual results could differ materially from current projections. Readers are encouraged to read filings the company has made with the Securities and Exchange Commission for additional information. PREMIER COMMUNITY BANKSHARES (Unaudited) ($ In Thousands) Balance Sheet June 30th, Assets: 2005 2004 % Change Cash & Due From Banks $20,255 $25,622 -20.9% Interest Bearing Due From Banks 186 164 13.4% Fed Funds Sold 19,861 26,387 -24.7% Securities-HTM 7,408 8,203 -9.7% Securities-AFS 20,053 17,509 14.5% Loans 535,101 449,859 18.9% Allowance for Loan Losses (5,256) (4,786) 9.8% Bank Premises & Equip. 14,313 11,723 22.1% Other Assets 12,581 8,542 47.3% Total Assets $624,502 $543,223 15.0% Liabilities: Noninterest Bearing Deposits $90,351 $73,270 23.3% Interest Bearing Deposits 440,348 381,695 15.4% Total Deposits $530,699 $454,965 16.6% Other Borrowed Money 21,672 30,716 -29.4% Other Liabilities 2,736 2,673 2.4% Trust Preferred Capital Notes 21,651 13,403 61.5% Total Liabilities $576,758 $501,757 14.9% Shareholders' Equity Common Stock $4,938 $4,890 1.0% Capital Surplus 19,608 19,338 1.4% Retained Earnings 23,144 17,224 34.4% Accumulated Other Comp Income (loss) 54 14 285.7% Total Shareholders' Equity $47,744 $41,466 15.1% Total Liabilities and Shareholders' Equity $624,502 $543,223 15.0% PREMIER COMMUNITY BANKSHARES (Unaudited) ($ In Thousands) Six Months Ending June 30th, 2005 2004 % Change Income Statement Interest Income $18,645 $14,644 27.3% Interest Expense 5,859 4,147 41.3% Net Interest Income 12,786 10,497 21.8% Provision for Loan Losses 327 745 -56.1% Net Interest Income After Provision for Loans Losses 12,459 9,752 27.8% Other Income 2,187 2,207 -0.9% Other Expenses 9,523 7,828 21.7% Income Before Taxes 5,123 4,131 24.0% Income Taxes 1,689 1,307 29.2% Net Income $3,434 $2,824 21.6% Results of Operation Book Value Per Share $9.67 $8.48 14.0% Earnings Per Share-Basic $0.70 $0.58 20.7% Earnings Per Share-Assuming Dilution $0.68 $0.56 21.4% Return on Average Assets 1.15% 1.15% 0.0% Return on Average Equity 15.06% 14.09% 6.9% Allowance for Loan Losses to Loans 0.98% 1.06% -7.5% Common Shares Outstanding, (Thousands) 4,938 4,890 1.0% PREMIER COMMUNITY BANKSHARES (Unaudited) ($ In Thousands) Three Months Ending June 30th, 2005 2004 % Change Income Statement Interest Income $9,714 $7,494 29.6% Interest Expense 3,176 2,111 50.5% Net Interest Income 6,538 5,383 21.5% Provision for Loan Losses 100 316 -68.4% Net Interest Income After Provision for Loans Losses 6,438 5,067 27.1% Other Income 1,135 1,172 -3.2% Other Expenses 4,929 4,047 21.8% Income Before Taxes 2,644 2,192 20.6% Income Taxes 871 689 26.4% Net Income $1,773 $1,503 18.0% Results of Operation Earnings Per Share-Basic $0.36 $0.31 16.1% Earnings Per Share-Diluted $0.35 $0.30 16.7% Return on Average Assets 1.15% 1.17% -1.7% Return on Average Equity 15.18% 14.81% 2.5% DATASOURCE: Premier Community Bankshares, Inc. CONTACT: Fred Board of Premier Community Bankshares, Inc., +1-540-869-6600, ext. 1012

Copyright