Porter Bancorp (PBIB) in Louisville, Ky., has turned to Sandler O'Neill to help it recapitalize after another quarterly loss.
The Sandler engagement comes as the company's PBI Bank's leverage ratio fell 16 basis points from the third quarter, to 5.37%, and the total risk-based capital ratio fell 3 basis points, to 9.82%. A consent order with regulators calls for those ratios to be 9% and 12% respectively.
The $1.2 billion-asset company had previously disclosed that it was exploring a common stock offering or a private placement, though it had not identified a financial advisor. Porter said Wednesday that said Sandler was now assisting its board in evaluating the proper way to recapitalize the bank.
Porter reported a loss of nearly $7 million for the fourth quarter, or 59 cents a share, compared to a $54.4 million loss a year earlier and a $26.9 million loss in the third quarter. The loss was smaller than those in previous quarters, but it was larger than the loss of 39 cents a share that analysts had expected.
The company was able to narrow its loss because of a reduction in credit-related expenses. Its loan-loss provision was $7 million, compared to $35.8 million a year earlier. Expenses related to foreclosures totaled $2.8 million, compared to $7 million a year earlier. Nonperforming assets were relatively flat from the third quarter, at $138.3 million, but ticked up 108 basis points to 11.9% of total assets as Porter's balance sheet contracted.
