This excerpt taken from the PRSP 10-Q filed May 11, 2009.
Total shareholders equity was $1.28 billion at March 31, 2009 compared with $1.26 billion at December 31, 2008, an increase of $25.4 million or 2.0%. The increase was due primarily to net earnings of $25.5 million and an increase in the change in unrealized gain on available for sale securities of $5.6 million which was partially offset by dividends paid of $6.3 million for the three months ended March 31, 2009.
Both the Board of Governors of the Federal Reserve System, with respect to the Company, and the FDIC, with respect to the Bank, have established certain minimum risk-based capital standards that apply to bank holding companies and federally insured banks. As of March 31, 2009, the Companys Tier 1 risk-based capital, total risk-based capital and leverage capital ratios were 11.48%, 10.53% and 5.48%, respectively. As of March 31, 2009, the Banks risk-based capital ratios were above the levels required for the Bank to be designated as well capitalized by the FDIC, with Tier-1 risk-based capital, total risk-based capital and leverage capital ratios of 10.10%, 11.04% and 5.25%, respectively. The Bank is participating in the deposit insurance component of the FDIC Temporary Liquidity Guarantee Program (TGLP), which increases deposit insurance on noninterest-bearing transaction account deposits on balances above $250,000 through December 31, 2009. The Company elected to not participate in the U.S. Department of Treasury Capital Purchase Program, which is a part of the Troubled Asset Relief Program.
The Company manages market risk, which for the Company is primarily interest rate risk, through its Asset Liability Committee which is composed of senior officers of the Company, in accordance with policies approved by the Companys Board of Directors.
The Company uses simulation analysis to examine the potential effects of market changes on net interest income and market value. The Company considers macroeconomic variables, Company strategy, liquidity and other factors as it quantifies market risk. See the Companys Annual Report on Form 10-K, Item 7 Managements Discussion and Analysis of Financial Condition and Results of Operations-Interest Rate Sensitivity and Liquidity which was filed on March 2, 2009 for further discussion.
Evaluation of disclosure controls and procedures. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply judgment in evaluating its controls and procedures. Based on this evaluation, the Companys Chief Executive Officer and Chief Financial Officer concluded that the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of the end of the period covered by this report.
Changes in internal control over financial reporting. There were no changes in the Companys internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2009 that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.
Neither the Company nor the Bank is currently a party to any material legal proceeding.
There have been no material changes in the Companys risk factors from those disclosed in the Companys Annual Report on Form 10-K for the year ended December 31, 2008.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.