Provident Community Bancshares Reports First Quarter Results

Provident Community Bancshares Reports First Quarter Results

ROCK HILL, S.C.--(BUSINESS WIRE)-- Provident Community Bancshares, Inc. (OTCBB: PCBS) (the "Corporation") recorded a net loss to common shareholders of $462,000 for the three months ended March 31, 2013 as compared to a net loss of $202,000 for the same period in 2012. The increase in loss in 2013 was primarily due to a reduction in net interest income due primarily to lower loan balances and a decrease in the yield on interest-earning assets due to the lower interest rate environment, offset by the absence of a provision for loan losses for the period ended March 31, 2013, due to a net reduction in loans, nonperforming assets and charge-offs. In addition, the Corporation did not record any gain on the sale of investments for the quarter ending March 31, 2013 compared to $239,000 for the previous year comparable quarter. Net loss per common share was $0.26 (diluted) for the three months ended March 31, 2013, versus a net loss of $0.11 per common share (diluted) for the same period in 2012.

Assets increased $5.2 million, or 1.5%, to $355.1 million at March 31, 2013 from $349.9 million at December 31, 2012. The increase in assets was due primarily to the growth in federal funds sold and securities as a result of deposit growth that was attributed to county tax receipts. It is anticipated that these funds will be drawn down over the course of the year for county needs. Net loans decreased $4.0 million from December 31, 2012 to March 31, 2013, due primarily to a significant reduction in loan demand as a result of economic conditions in South Carolina and more stringent underwriting standards. Investment securities at March 31, 2013 increased $4.9 million, or 2.9%, to $174.1 million from $169.2 million at December 31, 2012, primarily due to an increase in mortgage-backed securities, offset by a decrease in securities of government sponsored enterprises. Federal funds sold at March 31, 2013 increased $8.5 million to $28.8 million from $20.3 million at December 31, 2012 as a result of funds invested with proceeds from maturities of securities and loan payments. Total liabilities increased $5.8 million to $343.6 million at March 31, 2013 from $337.7 million at December 31, 2012. Deposits increased $7.1 million, or 2.6%, to $284.6 million at March 31, 2013 from $277.5 million at December 31, 2012 due to the increased county tax receipts. Security agreements to repurchase decreased $1.2 million to $5.1 million at March 31, 2013 from $6.3 million at December 31, 2012. Shareholders' equity decreased $616,000, or 5.1%, to $11.6 million at March 31, 2013 from $12.2 million at December 31, 2012 primarily due to a $273,000 increase in unrealized losses on securities available for sale along with a net operating loss of $343,000.

Nonperforming loans, which are primarily commercial real estate properties, were $14.0 million as of March 31, 2013, or 11.7% of total loans, as compared to $13.1 million at December 31, 2012, an increase of $829,000. Real estate acquired through foreclosure decreased $1.2 million, to $8.0 million at March 31, 2013 from $9.2 million at December 31, 2012, as a result of property sales. Bad debt charge-offs, net of recoveries were $12,000 for the three months ended March 31, 2013 compared to $160,000 for the same period in 2012.

COMPANY INFORMATION

Provident Community Bancshares is the holding company for Provident Community Bank, N.A., which operates eight community oriented banking centers in the upstate of South Carolina that offer a full array of financial services. The Corporation is headquartered in Rock Hill, South Carolina and its common stock is traded on the Over The Counter Bulletin Board under the symbol PCBS. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com.

FORWARD-LOOKING STATEMENTS

Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risk and uncertainties, which may change over time. The Corporation's performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation's actual results, see the Corporation's Annual Report in Form 10-K for the year ended December 31, 2012, including in the Risk Factors section of that report. Forward-looking statements speak only as of the date they are made. The Corporation does not assume any duty and does not undertake to update its forward-looking statements.

SUMMARY CONSOLIDATED FINANCIAL DATA

Our summary consolidated financial data as of and for the three months ended March 31, 2013, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.

Provident Community Bancshares, Inc.
Dwight V. Neese, 803-980-1863
President & Chief Executive Officer

KEYWORDS: United States North America South Carolina

INDUSTRY KEYWORDS:

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