Profile: PAB Bankshares, Inc. (PABK.O)

PAB Bankshares, Inc. (PAB), incorporated in 1982, is a holding company for The Park Avenue Bank (the Bank). The Bank offers traditional banking products and services to commercial and individual customers in its markets. Its product line includes, among other things, loans to small- and medium-sized businesses, residential and commercial construction and development loans, commercial real estate loans, farmland and agricultural production loans, residential mortgage loans, home equity loans, consumer loans, and a variety of commercial and consumer demand, savings and time deposit products. PAB also offers Internet banking, online cash management, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, remote depository products and the availability of a network of automated teller machines (ATMs) to its customers. In addition, through an agreement with a third-party broker-dealer and investment advisory firm, it is able to offer securities brokerage and investment advisory services to its customers. The Bank operates 13 branches located in seven counties in South Georgia; four branches and one loan production offices located in four counties in North Georgia; and one branch and one loan production office located in two counties in Florida.

Lending Activities

PAB makes both secured and unsecured loans to individuals, corporations, and other entities with the goals of safety, soundness, profitability and responsiveness to community needs. Its loan portfolio contains no foreign or energy-related loans or significant concentrations in any one industry or loan type, with the exception of loans secured by residential and commercial real estate in its market areas.

Investment Activities

At December 31, 2008, the estimated fair market value of its investment portfolio was approximately $ 2.3 million, or 1.2%, above its amortized cost. PAB does not carry any sub-prime mortgages, structured investment vehicles, or collateralized debt obligations in its portfolio. The Company also monitors the insurers of its state and municipal securities, and the distribution of such securities among the insurers.

Sources of Funds

The Bank’s total deposit portfolio grew $143.6 million, or 15%, in 2008. The average rate paid on time deposits amounted to 4.26% in 2008. At December 31, 2008, the Bank had $1.9 million in an available secured credit line with the Federal Home Loan Bank of Atlanta (FHLB) and an additional $60 million in unsecured Fed Funds lines of credit available with correspondent banks.