Provident Community Bancshares Reports Earnings For the Three and Twelve Months Ended...

Provident Community Bancshares Reports Earnings For the Three and Twelve Months Ended December 31, 2007

ROCK HILL, S.C.--(Business Wire)--Provident Community Bancshares, Inc. (NASDAQ GM: PCBS) (the
"Corporation") reported operating results for the three and twelve
months ended December 31, 2007. Net income for the fourth quarter of
2007 was $212,000 compared to $814,000 for the fourth quarter of 2006.
Earnings per share were $0.12 per share (diluted) for the fourth
quarter of 2007, versus $0.44 per share (diluted) for the fourth
quarter of 2006. Net income for the twelve months ended December 31,
2007, was $2.2 million, or $1.18 per share (diluted), compared to $2.8
million, or $1.48 per share (diluted), for 2006. The decrease in net
income for the periods primarily reflected an increase in the
provision for loan losses due to loan growth and the increase in
nonperforming assets.

At December 31, 2007, assets totaled $407.6 million, a 5.2%
increase from $387.6 million at December 31, 2006. The increase in
assets reflected an increase in loans, primarily higher-yielding
commercial and consumer loans, offset by a decrease in lower-yielding
investments and mortgage-backed securities. Growth in lower cost
transaction accounts and time deposits resulted in an increase in
deposits and a decrease in FHLB borrowings.

Dwight V. Neese, President and CEO, said "We are pleased with the
balance sheet structure and growth that we achieved in 2007. Loans
have increased approximately 11% since December 31, 2006, enabling our
company to exceed $400 million in total assets. In addition, we
increased our deposit base by approximately 9%. Our three new banking
center locations established in the previous year required a
significant capital investment, but played a major role in our deposit
growth of $22 million. While the year 2008 will present many
challenges for the banking industry, we plan to focus our attention on
core operations with the goal of enhancing long-term value for our
shareholders."

Nonperforming assets were $3.8 million as of December 31, 2007, or
0.93% of total assets, as compared to $1.4 million at December 31,
2006, an increase of $2.3 million. The majority of this increase
relates to two loan relationships that also existed at December 31,
2006. Management has allocated specific reserves to these and other
non accrual loans that it believes will offset losses, if any, arising
from less than full recovery of the loans from the supporting
collateral.

The Corporation also declared a quarterly cash dividend of $0.115
per share payable on February 15, 2008 to shareholders of record on
January 30, 2008. Provident Community Bancshares, Inc. has a dividend
reinvestment plan and information about the plan can be obtained from
Registrar and Transfer Company at 800-368-5948.

COMPANY HIGHLIGHTS

Provident Community Bancshares is the holding company for
Provident Community Bank, N.A., which operates nine community oriented
banking centers in the upstate of South Carolina that offer a full
array of financial services. The $407 million holding company is
headquartered in Rock Hill, South Carolina and its common stock is
traded on the NASDAQ Global Market 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 change over time. 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. However, such 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, 2006, including in the Risk Factors
section of that report.

SUMMARY CONSOLIDATED FINANCIAL DATA

Our summary consolidated financial data as of and for the three
and twelve months ended December 31, 2007, 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.

-0-
*T
Financial Highlights

(Unaudited) ($ in thousands, except per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
Income Statement Data 2007 2006 2007 2006
------------------------------ ------------------- -------------------

Net interest income $2,599 $2,637 $10,795 $10,524
Provision for loan losses 801 115 1,066 470
------------------- -------------------
Net interest income after
loan loss provision 1,798 2,522 9,729 10,054
Non-interest income 845 743 3,162 2,876
Non-interest expense 2,510 2,324 10,167 9,178
Income tax (79) 127 534 949
------------------- -------------------
Net income $212 $814 $2,190 $2,803
=================== ===================
Earnings per share: basic $0.12 $0.44 $1.20 $1.50
=================== ===================
Earnings per share: diluted $0.12 $0.44 $1.18 $1.48
=================== ===================
Weighted Average Number of
Common Shares Outstanding
Basic 1,795,578 1,834,261 1,820,666 1,865,951
Diluted 1,829,345 1,867,603 1,858,255 1,893,203
Cash dividends per share $0.115 $0.110 $0.455 $0.430
*T

-0-
*T
At At
Balance Sheet Data 12/31/07 12/31/06
-------------------------------------------------- -------------------

Total assets $407,641 $387,630
Cash and due from banks 11,890 9,124
Investment securities 111,187 122,185
Loans 259,831 234,640
Allowance for loan losses 3,344 2,754
Deposits 270,399 248,440
FHLB advances and other borrowings 93,631 98,533
Junior subordinated debentures 12,372 12,372
Shareholders' equity 27,313 25,967
Common shares outstanding 1,794,866 1,830,528
Book value per share $15.22 $14.19
Equity to average assets 6.72% 6.92%
Total loans to deposits 96.09% 94.45%
Allowance for loan losses to total loans 1.29% 1.17%

Asset Quality
Nonperforming loans 2,927 1,295
Other real estate owned 856 148
-------------------
Total nonperforming assets 3,783 1,443
Net loan charge-offs 476 110
*T

Provident Community Bancshares, Inc.
Dwight V. Neese, 803-980-1863

Copyright Business Wire 2008