Pioneer Bankshares, Inc. Announces 2010 - 2nd Quarter Earnings

STANLEY, Va., July 29 /PRNewswire-FirstCall/ -- Pioneer Bankshares, Inc., (OTC Bulletin Board: PNBI) parent company of Pioneer Bank, reported net earnings of $784,000 for the period ending June 30, 2010, as compared to $722,000 for the same period of 2009, which represents an increase of 8.59%.  Total earnings per share as of June 30, 2010 were $0.76 compared to $0.71 for the same period last year.

The Company had asset growth of approximately $6.1 million during the first six months of 2010.  Investments in securities available for sale increased by approximately $900,000 for the period ending June 30, 2010, as compared to total securities available for sale at December 31, 2009.  Investments in interest bearing deposits increased by $4.7 million for the period ending June 30, 2010 and investments in Federal Funds Sold decreased by approximately $1.3 million for the period ending June 30, 2010, as compared to balances as of December 31, 2009.  

The Company's loan portfolio has increased by approximately $3.6 million or 2.89% during the first six months of 2010.  The deposit portfolio increased by $3.3 million or 2.53% during the same period, with the majority of this growth being in interest bearing demand deposit accounts.  The Company's capital position remains strong as of June 30, 2010 at $18.4 million, or 11.09% as a percentage of total assets.  

The Company's book value as of June 30, 2010 was $17.83 per share, as compared to a book value of $17.40 per share as of December 31, 2009.  This represents an increase of 2.47%.  Shareholder dividend payments for the first two quarters of 2010 totaled $0.30 per share compared to $0.29 per share for the same period last year.  This represents a year-to-date increase of 3.45% for the company's shareholders.

Management recognizes that prevailing economic conditions may 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 six banking locations.  The Company's main branch and corporate office is located in Stanley, Virginia, with other branch locations in Shenandoah, Luray, Harrisonburg, Stanardsville, and Charlottesville, Virginia.

Additional financial information for the period ending June 30, 2010 is included below.

SOURCE Pioneer Bankshares, Inc.