Provident Community Bancshares Reports Second Quarter Results

Provident Community Bancshares Reports Second Quarter Results

ROCK HILL, S.C.--(BUSINESS WIRE)-- Provident Community Bancshares, Inc. (OTCBB: PCBS) (the "Corporation") reported a net loss to common shareholders of $1.5 million for the three months ended June 30, 2013 compared to net income to common shareholders of $24,000 for the same period in 2012. The loss in 2013 was primarily due to an increase in OREO expense along with an increase in the provision for loan losses due to an increase in loan write-downs. In addition, the gain on the sale of investments for the quarter ended June 30, 2013 was $24,000 compared to $286,000 for the previous year comparable quarter. Net loss per common share was $0.81 (diluted) for the three months ended June 30, 2013, versus net income of $0.01 per common share (diluted) for the same period in 2012. The net loss to common shareholders for the six months ended June 30, 2013 was $1.9 million, or $1.07 net loss per share (diluted), compared to a net loss to common shareholders of $178,000 or $0.10 per share (diluted), for the same period in 2012.

At June 30, 2013, assets totaled $344.0 million, a decrease of $5.9 million, or 1.7%, from $349.9 million at December 31, 2012. Investment securities at June 30, 2013 increased $11.2 million to $180.4 million from $169.2 million at December 31, 2012. Federal funds sold at June 30, 2013 decreased $11.8 million to $8.5 million from $20.3 million at December 31, 2012 as a result of sales and maturities of securities. Net loans receivable decreased 2.7% to $120.1 million at June 30, 2013 as a result of lower demand and more stringent underwriting standards. Deposits increased $132,000 to $277.6 million at June 30, 2013. Federal Home Loan Bank ("FHLB") advances and other borrowings decreased $831,000 to $42.9 million at June 30, 2013 due primarily to the maturation of borrowings. Shareholders' equity decreased $5.7 million, or 46.6%, to $6.5 million at June 30, 2013 from $12.2 million at December 31, 2012 due primarily to a $4.0 million increase in unrealized losses on securities available for sale along with net loss before accrued preferred stock dividends of $1.7 million.

Nonperforming loans, which are primarily commercial real estate properties, were $12.2 million as of June 30, 2013, or 10.7% of total loans, as compared to $13.2 million at December 31, 2012, a decrease of $971,000. Other Real Estate Owned ("OREO") decreased $4.0 million to $5.2 million at June 30, 2013 from $9.2 million at December 31, 2012, as a result of sales of real estate properties totaling $4.4 million. Bad debt charge-offs, net of recoveries, were $543,000 for the three months ended June 30, 2013 compared to $443,000 for the same period in 2012.

COMPANY INFORMATION

Provident Community Bancshares, Inc. 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 and six months ended June 30, 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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