Pioneer Bankshares, Inc. Announces 1st Quarter 2008 Earnings

STANLEY, Va., April 23 /PRNewswire-FirstCall/ -- Pioneer Bankshares, Inc., (BULLETIN BOARD: PNBI.OB) parent company of Pioneer Bank, reported relatively stable net earnings of $423,000 for the first quarter of 2008, as compared to $434,000 for the first quarter of 2007. Earnings per share for the quarter ended March 31, 2008 were $0.43 and remained the same as compared to the first quarter of 2007.

The Company had asset growth of approximately $14.0 million during the first quarter of 2008, which was primarily the result of additional borrowings and investment activities. Approximately $10.7 million in fixed low-rate borrowings were obtained from the Federal Home Loan Bank of Atlanta. These borrowings were initiated primarily for investment purposes with funds generally being placed in matching term investment instruments. Total investments in securities available for sale increased by $7.3 million for the period ending March 31, 2008, as compared to total securities at December 31, 2007. Investments in interest bearing deposits increased by approximately $8.2 million for the period ending March 31, 2008, as compared to December 31, 2007. These investment instruments were placed at a rate of interest higher than the borrowing rate in an effort to increase the bank's overall net interest spread.

The Company's loan portfolio decreased by approximately $2.0 million or 1.62% as of March 31, 2008, and is primarily attributed to residential real estate loan payoffs and refinance activities. The deposit portfolio increased by $3.0 million or 2.38% during the same period, with the majority of this growth being in time deposits. The Company's capital position as of March 31, 2008 was $16.5 million, or 9.97% as a percentage of total assets.

The Company's book value as of March 31, 2008 was $16.31 per share, as compared to a book value of $16.09 per share as of December 31, 2007. This represents an increase of 1.37%. Additionally, shareholder dividend payments for the first quarter of 2008 were increased by 7.14%, as compared to the same period last year.

Management recognizes that prevailing economic conditions have the potential to adversely impact the Company's operational results, including future earnings, liquidity, and capital resources. Management continually monitors economic factors in an effort to promptly identify specific trends that could have a direct material effect on the Company.

Pioneer Bankshares, Inc. is a one-bank holding company headquartered in Page County, Virginia. It owns and operates Pioneer Bank with seven banking locations. The Company's main branch and corporate office is located in Stanley, Virginia, with other branch locations in Shenandoah, Luray, Harrisonburg (2), Stanardsville, and Charlottesville, Virginia.

Additional financial highlights for the quarter ending March 31, 2008 are included in the table below.

PIONEER BANKSHARES, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except for per share data)
Unaudited
For the Quarter Ended
March 31,

Condensed Statement of Income 2008 2007

Interest and dividend income $ 2,653 $ 2,593
Interest expense 995 903
Net interest income 1,658 1,690

Provision for loan losses 105 45
Net interest income after provision
for loan losses 1,553 1,645

Non-interest income 421 282
Non-interest expense 1,326 1,273

Income before income taxes 648 654
Income tax expense 216 220

Net Income $ 432 $ 434

Balance Sheet Summary March 31, December 31,
2008 2007

Total Assets $ 165,778 $ 151,825
Total Deposits 130,380 127,355
Total Loans, Net of Unearned 123,571 125,611
Stockholders' Equity 16,533 16,275

Per Share Information
Net income per share, basic and diluted $ 0.43 $ 0.43
Dividends per share 0.15 0.14
Book value per share 16.31 16.09

First Call Analyst:
FCMN Contact:

Source: Pioneer Bankshares, Inc.

CONTACT: Thomas R. Rosazza, President-CEO, Pioneer Bankshares, Inc.,
+1-540-778-2294

Web Site: http://www.pioneerbks.com/

2008-04-23 17:45:24 0343774 PRNEWSWIRE