2011 Press Release

Portage Bancshares Inc. Announces Record Earnings for 2010

RAVENNA, OHIO - Richard J. Coe, Chief Executive Officer of Portage Community Bank and a Director of Portage Bancshares, Inc. announced the Company’s 2010 financial performance last night at the Annual Shareholders Meeting.  The meeting, held at the Rusty Nail Restaurant in Kent provided those in attendance with a delicious dinner before Mr. Coe made his presentation.

“In today’s troubled financial industry I am extremely proud of the Bank’s accomplishments in 2010 and the continued Growth in key areas of the Bank, including Investments, Deposits, and Total Assets, while sustaining a consistent level of Loan balances, which contributed to a very solid year,” began Mr. Coe.  He went on to highlight Portage Community Bank’s performance for 2010.  Portage Bancshares, Inc. produced record net income of $1.4 million, which represented an approximate increase of 75.0% over the $0.8 million earned during the same period in 2009.  Total Deposits grew by double digits of 11.1% over the previous year.   “By increasing the deposit base through various promotions, Portage Community Bank was able to fund loans and prove their continued commitment to reinvest within the community while meeting the deposit needs of our customers,” Mr. Coe commented.  Total Deposits as of December 31, 2010 amounted to $206.6 million as compared to $185.9 million in 2009, for an increase of $20.7 million.  Mr. Coe then stated, “We are so proud of the milestone reached in our Kent Office, opened July, 2006, that as of today Total Deposits in Kent have reached $49.7 million. This growth has surpassed the 5 year goal of $35 million dollars.” Total Assets again demonstrated solid growth of $18.0 million over the previous year which represented an increase of 7.89% based on growth from $228.1 million to $246.1 million as of December 31, 2010.  Portage Community Bank had another strong year of percentage growth in deposit market share in Portage County increasing from 11.8% in June of 2009 to 12.3% in June 2010 according to F.D.I.C. Deposit Reports. 

Net Loan growth was purposely slowed based on the state of the economy and the commitment to approve only the very best credits presented to the bank.  This action resulted in Net Loan growth for 2010 to be relatively flat.  Portage Community Bank has continued to be defined as a Well Capitalized Bank based on the FDIC Act of 1991.  Its ratios of Total Risk Based Capital, Tier 1 Risk Based Capital and Leverage Capital exceed the minimum capital ratios to be considered a well capitalized bank.  In addition, Bauer Financial Inc. has awarded an Excellent Four Star Rating to Portage Community Bank and placed the Bank on their Recommended Bank Report.  This recommendation highlights Portage Community Bank’s fourth consecutive year as one of the strongest banks in the nation.  “This comes at a time when strength, stability, safety and security in a local bank mean a great deal more to our customers and shareholders” continued Mr. Coe.

Mr. Coe extended his thanks to the Board of Directors for their continued leadership and acknowledged the 58 employees of the Bank.  He said, “Their dedication and compassion to build a solid foundation of customer service has been unprecedented since the day our doors opened.”

At the end of the evenings presentation Mr. Coe stated, “We are very proud that our shareholders recognize we are truly “Neighbors Serving Neighbors” while at the same time increasing the return that they receive for their investment.”  He announced that the Board of Directors of Portage Bancshares Inc. unanimously voted to pay a dividend of $.65 a share, as of record on May 17, 2011.  This figure represents a 8% increase in the dividends from last year.  This dividend, paid on an annual basis, will be distributed in June, 2011.

Portage Community Bank is a wholly owned subsidiary of Portage Bancshares Inc. To learn more about Portage Community Bank, please visit their website at www.pcbbank.com. Portage Community Bank is an equal housing lender and FDIC Insured.