First M&F Corp. Reports Improved Earnings and Positive Credit Trends
KOSCIUSKO, Miss., Jan. 24, 2011 /PRNewswire/ -- First M&F Corp. (Nasdaq: FMFC) today reported 2010 net income of $4.011 million as compared to a net loss of $59.799 million for 2009. Earnings attributable to common shareholders were $15.071 million, or $1.66 basic and diluted earnings per share, compared to a loss of $60.655 million, or ($6.69) basic and diluted earnings per share for 2009. Earnings attributable to common shareholders includes a $12.867 million gain on exchange of preferred stock recorded in the third quarter. Excluding the gain on exchange, common earnings were $2.301 million, or $.25 basic and diluted earnings per share.
Net income for the quarter ended December 31, 2010 was $.267 million attributable to common shareholders, or $.03 basic and diluted earnings per share, compared to a loss of $27.488 million, or ($3.03) basic and diluted earnings per share for the fourth quarter of 2009.
For the fourth quarter of 2010 the annualized return on assets was 0.16%, while return on common equity was 1.16%. Comparatively, the return on assets for the fourth quarter of 2009 was a negative 6.46%, with a negative return on common equity of 105.37%. The return on assets for 2010 was 0.25%, while the return on common equity was 2.87%.
"The positive and encouraging trends begun in the first quarter of 2010 continued through year end," said Hugh S. Potts, Jr., Chairman and Chief Executive Officer. Mr. Potts continued, "Actions taken during 2009 bore fruit in 2010. Virtually every credit related measure improved in 2010. Losses by charge-offs on loans were reduced from $49 million to $17 million. Non-accrual loans were reduced proportionally from 4.17% of loans to 3.11% and absolutely from $44.5 million to $33.1 million. As expected, as non-accrual loans receded, Other Real Estate increased; however, in 2010, $16 million of ORE was sold at 105% of book. The inflow of both Non-performing Loans and Other Real Estate is expected to further abate in 2011."
Net Interest Income
Net interest income was up slightly compared to the fourth quarter of 2009, with the net interest margin increasing to 3.57% in the fourth quarter of 2010 as compared to 3.28% in the fourth quarter of 2009. The significant contributor to the increase in net interest income was the improvement in net interest spreads stemming from lower deposit costs. The net interest margin for the third quarter of 2010 was 3.60% as compared to 3.40% for the second quarter of 2010 and 3.16% for the first quarter of 2010 as the cost of funds trended downward all year. Loan yields decreased to 5.89% in the fourth quarter of 2010 from 6.04% in the fourth quarter of 2009. Loan yields were virtually flat from the third quarter of 2010 to the fourth quarter. Average loans were $1.048 billion for the fourth quarter of 2010 as compared to $1.052 billion for the third quarter of 2010 and $1.103 million during the fourth quarter of 2009. Loans grew by $13.133 million in the fourth quarter of 2010 and by $8.898 million in the third quarter. Deposit costs fell in the fourth quarter of 2010 from the third quarter of 2010 and from the fourth quarter of 2009, as deposits were re-priced downward throughout 2010 in the current stable low-rate environment. Deposit costs were 1.49% in the fourth quarter of 2010 as compared to 1.87% in the fourth quarter of 2009. Deposits grew by $53.532 million during the fourth quarter of 2010. Management continues to emphasize and focus on core deposit growth by developing and promoting relationship-driven deposit gathering while de-emphasizing non-core deposit funding. Loans as a percentage of assets were 66.10% at December 31, 2010 as compared to 63.64% at December 31, 2009 and 67.70% at September 30, 2010. With modest growth in the third and fourth quarters loans at year-end were up just slightly over the prior year while deposits fell by less than 1.00%.
Non-interest Income
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, for the fourth quarter of 2010 was down by 8.51% compared to the fourth quarter of 2009, with deposit-related income down by 10.29% and mortgage income up 11.14%. Insurance agency commissions were up by almost 1.00%.
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, was down 8.23% for 2010 versus 2009. Over half of non-interest income is from deposit sources, which was down 6.88% year over year. Deposit revenues continue to be supported by debit card fee income, which increased by 9.44% in 2010 over 2009, and overdraft fee income, which, however, decreased by 12.79% for the year. Commission revenues from traditional insurance products were down 1.86% year over year.
Non-interest income includes non-cash other-than-temporary impairment charges of $.403 million in 2010 and $.829 million in 2009 on pooled trust preferred securities held in the investment portfolio. These charges reflect credit losses expected due to deferrals and defaults by issuing institutions and cash flow analyses.
Non-interest Expenses
Non-interest expenses excluding goodwill impairments and amortization were down by 19.31% in the fourth quarter of 2010 as compared to the fourth quarter of 2009. Most of the decrease in expenses was due to lower foreclosed property expenses as credit quality improved and the pace of new problem credits and foreclosures slowed. Salaries and benefits for the quarter were virtually flat compared to the year-ago quarter.
Non-interest expenses excluding goodwill impairments and amortization fell by 12.25% for 2010 as compared to 2009. Although most of the decrease was due to lower foreclosed property expenses, salaries and benefits, net occupancy expenses and other expenses were each down significantly in 2010 as cost savings measures and branch closure savings were fully realized. The number of average full-time equivalent employees at the end of 2010 was 496 as compared to 496 at the end of the third quarter of 2010 and 517 at the end of 2009.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the fourth quarter of 2010 were 2.41% as compared to 8.87% for the same period in 2009. Non-accrual and 90-day past due loans as a percent of total loans were 3.20% at the end of 2010 as compared to 4.40% at the end of 2009. Annualized net charge-offs as a percentage of average loans for 2010 were 1.65% as compared to 4.50% for 2009. The allowance for loan losses as a percentage of loans was 1.50% at December 31, 2010 as compared to 2.25% at December 31, 2009. The provision for loan losses fell sharply in 2010 from $49.601 million in 2009 to $9.220 million in 2010. The decrease in provisioning year over year reflected the slowed pace of new credit issues and the prior year significant deterioration in collateral values on collateral-dependent real estate loans.
Mr. Potts commented, "Income at the bank, holding company, and subsidiaries improved as the burden of credit issues receded. Margins improved, loan volume grew slightly, cost control measures took full effect, and capital grew slightly, proportionately, and absolutely." Mr. Potts continued, "Our course, charted through the collapse of acquisition, construction and development credit, has proven to be proper. Now we must accelerate our progress in income growth as credit issues further recede."
Balance Sheet
Total assets fell by 3.55% in 2010, to $1.604 billion from $1.663 billion. Total equity grew to $107.065 million, a 2.33% increase from 2009. Total loans were $1.060 billion compared to $1.058 billion at the end of 2009. Deposits were $1.375 billion compared to $1.388 billion at the end of 2009. Book value per common share increased to $9.96 per share at the end of 2010, a 19.14% increase from 2009.
Growth
In the first quarter of 2009 the Company closed one branch in Shelby County, Tennessee. In the fourth quarter of 2009, the Company closed four branches, one each in Starkville, Philadelphia and Southaven, Mississippi and one in Crestview, Florida. In the first quarter of 2010 the Company closed two branches in Shelby County, Tennessee and one branch in Shelby County, Alabama. These closures are designed to improve the Company's efficiencies and cost structure without exiting any markets.
About First M&F Corporation
First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the mid-south better through the delivery of excellence in financial services to 33 communities in Mississippi, Alabama, Tennessee and Florida.
Caution Concerning ForwardLooking Statements
This document includes certain "forwardlooking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.
First M&F Corporation |
|||
Condensed Consolidated Statements of Condition (Unaudited) |
|||
(In thousands, except share data) |
|||
December 31 |
December 31 |
||
2010 |
2009 |
||
Cash and due from banks |
45,099 |
42,446 |
|
Interest bearing bank balances |
72,103 |
84,810 |
|
Federal funds sold |
25,000 |
70,000 |
|
Securities available for sale (cost of |
|||
$274,421 and $280,470) |
276,929 |
284,550 |
|
Loans held for sale |
6,242 |
10,266 |
|
Loans |
1,060,146 |
1,058,340 |
|
Allowance for loan losses |
16,025 |
24,014 |
|
Net loans |
1,044,121 |
1,034,326 |
|
Bank premises and equipment |
40,696 |
42,919 |
|
Accrued interest receivable |
6,380 |
7,598 |
|
Other real estate |
31,125 |
23,578 |
|
Goodwill |
0 |
0 |
|
Other intangible assets |
5,013 |
5,439 |
|
Other assets |
51,256 |
57,036 |
|
Total assets |
1,603,964 |
1,662,968 |
|
Non-interest bearing deposits |
212,199 |
228,579 |
|
Interest bearing deposits |
1,163,213 |
1,159,684 |
|
Total deposits |
1,375,412 |
1,388,263 |
|
Federal funds and repurchase agreements |
33,481 |
8,642 |
|
Other borrowings |
50,416 |
122,510 |
|
Junior subordinated debt |
30,928 |
30,928 |
|
Accrued interest payable |
1,470 |
2,933 |
|
Other liabilities |
5,192 |
5,062 |
|
Total liabilities |
1,496,899 |
1,558,338 |
|
Preferred stock, 30,000 shares issued and outstanding |
16,390 |
28,838 |
|
Common stock, 9,106,803 and 9,069,346 |
|||
shares issued & outstanding |
45,534 |
45,347 |
|
Additional paid-in capital |
31,884 |
31,926 |
|
Nonvested restricted stock awards |
784 |
734 |
|
Retained earnings |
12,224 |
(2,595) |
|
Accumulated other comprehensive income |
249 |
379 |
|
Total First M&F Corp equity |
107,065 |
104,629 |
|
Noncontrolling interests in subsidiaries |
- |
1 |
|
Total equity |
107,065 |
104,630 |
|
Total liabilities & equity |
1,603,964 |
1,662,968 |
|
First M&F Corporation and Subsidiary |
|||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||
(In thousands, except share data) |
|||||
Three Months Ended December 31 |
Twelve Months Ended December 31 |
||||
2010 |
2009 |
2010 |
2009 |
||
Interest and fees on loans |
15,463 |
16,635 |
62,070 |
66,782 |
|
Interest on loans held for sale |
62 |
86 |
232 |
278 |
|
Taxable investments |
1,676 |
2,213 |
7,616 |
9,531 |
|
Tax exempt investments |
353 |
488 |
1,549 |
2,105 |
|
Federal funds sold |
15 |
34 |
82 |
95 |
|
Interest bearing bank balances |
34 |
30 |
143 |
42 |
|
Total interest income |
17,603 |
19,486 |
71,692 |
78,833 |
|
Interest on deposits |
4,177 |
5,452 |
18,809 |
23,701 |
|
Interest on fed funds and repurchase agreements |
17 |
14 |
66 |
97 |
|
Interest on other borrowings |
536 |
1,329 |
3,024 |
5,449 |
|
Interest on subordinated debt |
505 |
504 |
1,992 |
1,992 |
|
Total interest expense |
5,235 |
7,299 |
23,891 |
31,239 |
|
Net interest income |
12,368 |
12,187 |
47,801 |
47,594 |
|
Provision for possible loan losses |
2,280 |
15,761 |
9,220 |
49,601 |
|
Net interest income after loan loss |
10,088 |
(3,574) |
38,581 |
(2,007) |
|
Service charges on deposits |
2,546 |
2,838 |
10,221 |
10,976 |
|
Mortgage banking income |
439 |
395 |
1,581 |
1,823 |
|
Agency commission income |
864 |
856 |
3,809 |
3,881 |
|
Fiduciary and brokerage income |
120 |
117 |
526 |
489 |
|
Other income |
448 |
622 |
2,532 |
3,174 |
|
Other-than-temporary impairment on securities, net of |
|||||
$0, $1,490, $32 and $2,696 recognized in other |
|||||
comprehensive income |
- |
(417) |
(403) |
(829) |
|
Gains on AFS securities |
539 |
14 |
2,255 |
456 |
|
Total noninterest income |
4,956 |
4,425 |
20,521 |
19,970 |
|
Salaries and employee benefits |
6,732 |
6,748 |
27,303 |
28,314 |
|
Net occupancy expense |
968 |
1,306 |
3,937 |
4,614 |
|
Equipment expenses |
523 |
682 |
2,382 |
2,877 |
|
Software and processing expenses |
400 |
440 |
1,627 |
1,898 |
|
FDIC insurance assessments |
768 |
711 |
3,261 |
3,276 |
|
Foreclosed property expenses |
1,905 |
4,493 |
2,946 |
7,283 |
|
Goodwill impairment |
- |
16,772 |
- |
32,572 |
|
Intangible asset amortization and impairment |
107 |
107 |
427 |
1,688 |
|
Other expenses |
3,225 |
3,617 |
12,607 |
13,350 |
|
Total noninterest expense |
14,628 |
34,876 |
54,490 |
95,872 |
|
Net income (loss) before taxes |
416 |
(34,025) |
4,612 |
(77,909) |
|
Income tax expense (benefit) |
(226) |
(6,715) |
602 |
(18,104) |
|
Net income (loss) |
642 |
(27,310) |
4,010 |
(59,805) |
|
Net income (loss) attributable to noncontrolling interests |
1 |
1 |
(1) |
(6) |
|
Net income (loss) attributable to First M&F Corp |
641 |
(27,311) |
4,011 |
(59,799) |
|
Earnings Per Common Share Calculations: |
|||||
Net income (loss) attributable to First M&F Corp |
641 |
(27,311) |
4,011 |
(59,799) |
|
Dividends and accretion on preferred stock |
(375) |
(436) |
(1,692) |
(1,464) |
|
Gain on exchange of preferred stock (Note 1) |
0 |
- |
12,867 |
- |
|
Net income (loss) applicable to common stock |
266 |
(27,747) |
15,186 |
(61,263) |
|
Earnings (loss) attributable to participating securities |
(1) |
(259) |
115 |
(608) |
|
Net income (loss) allocated to common shareholders |
267 |
(27,488) |
15,071 |
(60,655) |
|
Weighted average shares (basic) |
9,099,883 |
9,069,346 |
9,081,687 |
9,066,880 |
|
Weighted average shares (diluted) |
9,099,883 |
9,069,346 |
9,081,687 |
9,066,880 |
|
Basic earnings (loss) per share |
$0.03 |
($3.03) |
$1.66 |
($6.69) |
|
Diluted earnings (loss) per share |
$0.03 |
($3.03) |
$1.66 |
($6.69) |
|
First M&F Corporation |
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Financial Highlights |
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YTD Ended |
YTD Ended |
||||
December 31 |
December 31 |
||||
2010 |
2009 |
||||
Performance Ratios: |
|||||
Return on assets (annualized) |
0.25% |
-3.63% |
|||
Return on equity (annualized) (a) |
3.74% |
-42.97% |
|||
Return on common equity (annualized) (a) |
2.87% |
-53.73% |
|||
Efficiency ratio |
78.47% |
89.87% |
|||
Net interest margin (annualized, tax-equivalent) |
3.43% |
3.29% |
|||
Net charge-offs to average loans (annualized) |
1.65% |
4.50% |
|||
Nonaccrual loans to total loans |
3.11% |
4.17% |
|||
90 day accruing loans to total loans |
0.09% |
0.23% |
|||
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2010 |
2010 |
2010 |
||
Per Common Share (diluted): |
|||||
Net income (loss) (including $12,867 gain) |
0.03 |
1.49 |
0.09 |
0.05 |
|
Net income (loss) (excluding $12,867 gain) |
0.03 |
0.08 |
0.09 |
0.05 |
|
Cash dividends paid |
0.01 |
0.01 |
0.01 |
0.01 |
|
Book value |
9.96 |
10.18 |
8.68 |
8.37 |
|
Closing stock price |
3.74 |
3.38 |
3.86 |
3.15 |
|
Loan Portfolio Composition: (in thousands) |
|||||
Commercial, financial and agricultural |
125,614 |
130,596 |
130,657 |
123,476 |
|
Non-residential real estate |
646,731 |
626,747 |
615,571 |
626,025 |
|
Residential real estate |
195,184 |
196,299 |
196,547 |
195,862 |
|
Home equity loans |
40,305 |
40,523 |
41,254 |
43,043 |
|
Consumer loans |
44,308 |
45,124 |
44,998 |
44,788 |
|
Other loans |
8,004 |
7,724 |
9,088 |
9,235 |
|
Total loans |
1,060,146 |
1,047,013 |
1,038,115 |
1,042,429 |
|
Deposit Composition: (in thousands) |
|||||
Noninterest-bearing deposits |
227,759 |
220,556 |
227,825 |
217,683 |
|
NOW deposits |
348,650 |
307,533 |
312,828 |
331,066 |
|
MMDA deposits |
166,454 |
162,955 |
145,798 |
141,203 |
|
Savings deposits |
114,769 |
117,175 |
114,426 |
113,367 |
|
Core certificates of deposit under $100,000 |
268,272 |
267,350 |
278,177 |
289,525 |
|
Core certificates of deposit $100,000 and over |
234,500 |
228,543 |
245,182 |
262,335 |
|
Brokered certificates of deposit under $100,000 |
3,074 |
3,005 |
5,322 |
6,033 |
|
Brokered certificates of deposit $100,000 and over |
11,934 |
14,762 |
14,253 |
12,786 |
|
Total deposits |
1,375,412 |
1,321,879 |
1,343,811 |
1,373,998 |
|
Nonperforming Assets: (in thousands) |
|||||
Nonaccrual loans |
33,127 |
37,082 |
35,603 |
42,148 |
|
Other real estate |
31,125 |
38,631 |
31,231 |
31,460 |
|
Investment securities |
698 |
596 |
660 |
795 |
|
Total nonperforming assets |
64,950 |
76,309 |
67,494 |
74,403 |
|
Accruing loans past due 90 days or more |
951 |
858 |
1,307 |
2,092 |
|
Restructured loans (accruing) |
18,052 |
18,518 |
15,374 |
6,759 |
|
Total nonaccrual loan to loans |
3.11% |
3.53% |
3.41% |
4.01% |
|
Total nonperforming credit assets to loans and ORE |
5.85% |
6.95% |
6.22% |
6.80% |
|
Total nonperforming assets to assets ratio |
4.05% |
4.93% |
4.30% |
4.58% |
|
Allowance For Loan Loss Activity: (in thousands) |
|||||
Beginning balance |
20,077 |
18,301 |
21,115 |
24,014 |
|
Provision for loan loss |
2,280 |
2,280 |
2,380 |
2,280 |
|
Charge-offs |
(6,536) |
(1,485) |
(5,706) |
(5,928) |
|
Recoveries |
204 |
981 |
512 |
749 |
|
Ending balance |
16,025 |
20,077 |
18,301 |
21,115 |
|
First M&F Corporation |
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Financial Highlights |
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QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
December 31 |
September 30 |
June 30 |
March 31 |
||
2010 |
2010 |
2010 |
2010 |
||
Condensed Income Statements: (in thousands) |
|||||
Interest income |
17,603 |
17,855 |
18,222 |
18,012 |
|
Interest expense |
5,235 |
5,561 |
6,324 |
6,771 |
|
Net interest income |
12,368 |
12,294 |
11,898 |
11,241 |
|
Provision for loan losses |
2,280 |
2,280 |
2,380 |
2,280 |
|
Noninterest revenues |
4,956 |
4,746 |
5,216 |
5,603 |
|
Noninterest expenses |
14,628 |
13,111 |
13,342 |
13,409 |
|
Net income (loss) before taxes |
416 |
1,649 |
1,392 |
1,155 |
|
Income tax expense (benefit) |
(226) |
407 |
120 |
301 |
|
Noncontrolling interest |
1 |
(3) |
0 |
1 |
|
Net income (loss) |
641 |
1,245 |
1,272 |
853 |
|
Preferred dividends |
(375) |
(441) |
(439) |
(437) |
|
Gain on exchange of preferred stock |
- |
12,867 |
- |
- |
|
Net income (loss) applicable to common stock |
266 |
13,671 |
833 |
416 |
|
Earnings (loss) attributable to participating securities |
(1) |
106 |
7 |
3 |
|
Net income (loss) allocated to common shareholders |
267 |
13,565 |
826 |
413 |
|
Tax-equivalent net interest income |
12,624 |
12,563 |
12,180 |
11,554 |
|
Selected Average Balances: (in thousands) |
|||||
Assets |
1,574,426 |
1,553,415 |
1,598,285 |
1,638,761 |
|
Loans held for investment |
1,041,453 |
1,046,242 |
1,038,148 |
1,056,177 |
|
Earning assets |
1,404,766 |
1,384,289 |
1,438,166 |
1,481,335 |
|
Deposits |
1,341,738 |
1,331,624 |
1,362,362 |
1,379,510 |
|
Equity |
109,110 |
108,535 |
105,381 |
105,584 |
|
Common equity |
90,612 |
79,547 |
76,582 |
76,715 |
|
Selected Ratios: |
|||||
Return on average assets (annualized) |
0.16% |
0.32% |
0.32% |
0.21% |
|
Return on average equity (annualized) (a) |
2.33% |
4.55% |
4.84% |
3.28% |
|
Return on average common equity (annualized) (a) |
1.16% |
4.01% |
4.37% |
2.20% |
|
Average equity to average assets |
6.93% |
6.99% |
6.59% |
6.44% |
|
Tangible equity to tangible assets (b) |
6.38% |
6.72% |
6.56% |
6.15% |
|
Tangible common equity to tangible assets (b) |
5.36% |
5.67% |
4.70% |
4.36% |
|
Net interest margin (annualized, tax-equivalent) |
3.57% |
3.60% |
3.40% |
3.16% |
|
Efficiency ratio |
83.22% |
75.75% |
76.69% |
78.16% |
|
Net charge-offs to average loans (annualized) |
2.41% |
0.19% |
2.01% |
1.99% |
|
Nonaccrual loans to total loans |
3.11% |
3.53% |
3.41% |
4.01% |
|
90 day accruing loans to total loans |
0.09% |
0.08% |
0.17% |
0.20% |
|
Price to book (x) |
0.38 |
0.33 |
0.44 |
0.38 |
|
Price to earnings (x) |
31.17 |
10.56 |
10.72 |
15.75 |
|
First M&F Corporation |
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Financial Highlights |
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Historical Earnings Trends: |
Earnings |
Earnings |
|||
Applicable to |
Allocated to |
||||
Common |
Common |
||||
Earnings |
Stock |
Shareholders |
EPS |
||
(in thousands) |
(in thousands) |
(in thousands) |
(diluted) |
||
4Q 2010 |
642 |
266 |
267 |
0.03 |
|
3Q 2010 |
1,242 |
13,671 |
13,565 |
1.49 |
|
2Q 2010 |
1,272 |
833 |
826 |
0.09 |
|
1Q 2010 |
854 |
416 |
413 |
0.05 |
|
4Q 2009 |
(27,311) |
(27,747) |
(27,488) |
(3.03) |
|
3Q 2009 |
(136) |
(571) |
(580) |
(0.06) |
|
2Q 2009 |
(5,111) |
(5,550) |
(5,498) |
(0.61) |
|
1Q 2009 |
(27,241) |
(27,395) |
(27,089) |
(2.99) |
|
4Q 2008 |
(4,357) |
(4,357) |
(4,300) |
(0.47) |
|
3Q 2008 |
2,210 |
2,210 |
2,183 |
0.24 |
|
2Q 2008 |
(466) |
(466) |
(458) |
(0.05) |
|
Revenue Statistics: |
Non-interest |
Non-interest |
|||
Revenues |
Revenues to |
Revenues to |
|||
Per FTE |
Ttl. Revenues |
Avg. Assets |
|||
(thousands) |
(percent) |
(percent) |
|||
4Q 2010 |
35.4 |
28.19% |
1.25% |
||
3Q 2010 |
34.9 |
27.42% |
1.21% |
||
2Q 2010 |
35.1 |
29.98% |
1.31% |
||
1Q 2010 |
34.4 |
32.66% |
1.39% |
||
4Q 2009 |
32.8 |
26.09% |
1.05% |
||
3Q 2009 |
34.4 |
29.81% |
1.30% |
||
2Q 2009 |
31.2 |
29.92% |
1.24% |
||
1Q 2009 |
32.3 |
29.81% |
1.28% |
||
4Q 2008 |
32.8 |
26.90% |
1.19% |
||
3Q 2008 |
34.4 |
29.16% |
1.37% |
||
2Q 2008 |
33.4 |
28.13% |
1.31% |
||
Expense Statistics: |
Non-interest |
||||
Expense to |
Efficiency |
||||
Avg. Assets |
Ratio |
||||
(percent) |
(percent) (c) |
||||
4Q 2010 |
3.69% |
83.22% |
|||
3Q 2010 |
3.35% |
75.75% |
|||
2Q 2010 |
3.35% |
76.69% |
|||
1Q 2010 |
3.32% |
78.16% |
|||
4Q 2009 |
8.25% |
106.73% |
|||
3Q 2009 |
3.41% |
78.34% |
|||
2Q 2009 |
3.94% |
95.10% |
|||
1Q 2009 |
7.65% |
80.41% |
|||
4Q 2008 |
3.52% |
79.29% |
|||
3Q 2008 |
3.29% |
69.93% |
|||
2Q 2008 |
3.34% |
71.85% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
QTD December 2010 |
QTD December 2009 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
65,302 |
0.21% |
59,852 |
0.20% |
|
Federal funds sold |
25,000 |
0.25% |
65,479 |
0.20% |
|
Taxable investments (amortized cost) |
228,935 |
2.91% |
237,842 |
3.69% |
|
Tax-exempt investments (amortized cost) |
37,525 |
5.95% |
52,275 |
5.91% |
|
Loans held for sale |
6,551 |
3.75% |
9,229 |
3.71% |
|
Loans held for investment |
1,041,453 |
5.91% |
1,093,694 |
6.06% |
|
Total earning assets |
1,404,766 |
5.04% |
1,518,371 |
5.18% |
|
Non-earning assets |
169,660 |
158,133 |
|||
Total average assets |
1,574,426 |
1,676,504 |
|||
NOW |
319,309 |
1.02% |
296,806 |
1.18% |
|
MMDA |
167,154 |
1.14% |
169,439 |
1.14% |
|
Savings |
115,806 |
1.26% |
112,482 |
1.36% |
|
Certificates of Deposit |
512,012 |
1.95% |
576,285 |
2.54% |
|
Short-term borrowings |
34,194 |
0.20% |
10,036 |
0.56% |
|
Other borrowings |
80,946 |
5.10% |
163,422 |
4.45% |
|
Total interest bearing liabilities |
1,229,421 |
1.69% |
1,328,470 |
2.18% |
|
Non-interest bearing deposits |
227,457 |
206,037 |
|||
Non-interest bearing liabilities |
8,438 |
8,757 |
|||
Preferred equity |
18,498 |
28,768 |
|||
Common equity |
90,612 |
104,472 |
|||
Total average liabilities and equity |
1,574,426 |
1,676,504 |
|||
Net interest spread |
3.35% |
3.00% |
|||
Effect of non-interest bearing deposits |
0.26% |
0.29% |
|||
Effect of leverage |
-0.04% |
-0.01% |
|||
Net interest margin, tax-equivalent |
3.57% |
3.28% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.06% |
0.08% |
|||
Loans |
0.02% |
0.02% |
|||
Reported book net interest margin |
3.49% |
3.18% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
YTD December 2010 |
YTD December 2009 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
60,894 |
0.24% |
25,151 |
0.17% |
|
Federal funds sold |
35,642 |
0.23% |
43,871 |
0.22% |
|
Taxable investments (amortized cost) |
236,046 |
3.23% |
234,942 |
4.06% |
|
Tax-exempt investments (amortized cost) |
41,347 |
5.97% |
56,021 |
5.99% |
|
Loans held for sale |
7,416 |
3.13% |
8,120 |
3.42% |
|
Loans held for investment |
1,045,467 |
5.96% |
1,122,308 |
5.97% |
|
Total earning assets |
1,426,812 |
5.11% |
1,490,413 |
5.39% |
|
Non-earning assets |
164,130 |
154,747 |
|||
Total average assets |
1,590,942 |
1,645,160 |
|||
NOW |
321,036 |
1.05% |
280,484 |
1.28% |
|
MMDA |
151,974 |
1.12% |
167,425 |
1.34% |
|
Savings |
114,358 |
1.28% |
113,397 |
1.48% |
|
Certificates of Deposit |
544,192 |
2.26% |
569,623 |
2.84% |
|
Short-term borrowings |
19,112 |
0.35% |
10,448 |
0.93% |
|
Other borrowings |
102,112 |
4.91% |
165,548 |
4.49% |
|
Total interest bearing liabilities |
1,252,784 |
1.91% |
1,306,925 |
2.39% |
|
Non-interest bearing deposits |
222,083 |
190,541 |
|||
Non-interest bearing liabilities |
8,909 |
8,538 |
|||
Preferred equity |
26,300 |
25,141 |
|||
Common equity |
80,866 |
114,015 |
|||
Total average liabilities and equity |
1,590,942 |
1,645,160 |
|||
Net interest spread |
3.20% |
3.00% |
|||
Effect of non-interest bearing deposits |
0.29% |
0.30% |
|||
Effect of leverage |
-0.06% |
-0.01% |
|||
Net interest margin, tax-equivalent |
3.43% |
3.29% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.06% |
0.08% |
|||
Loans |
0.02% |
0.02% |
|||
Reported book net interest margin |
3.35% |
3.19% |
|||
First M&F Corporation |
|
Notes to Financial Schedules |
|
(a) Return on equity is calculated as: (Net income attributable to First M&F Corp) divided by (Total equity) Return on common equity is calculated as: (Net income attributable to First M&F Corp minus preferred dividends) divided by (Total First M&F Corp equity minus preferred stock) |
|
(b) Tangible equity to tangible assets is calculated as: (Total equity minus goodwill and other intangible assets) divided by (Total assets minus goodwill and other intangible assets) |
|
Tangible common equity to tangible assets is calculated as: (Total First M&F Corp equity minus preferred stock minus goodwill and other intangible assets) divided by (Total assets minus goodwill and other intangible assets) |
|
(c) Efficiency ratio is calculated as: (Noninterest expense) divided by (Tax-equivalent net interest income plus noninterest revenues) |
|
Note 1: On September 29, 2010 the Company issued 30,000 shares of Class B, Series CD, par value $1,000 preferred stock to the U.S. Treasury to acquire its 30,000 shares outstanding of Class B, Series A, par value $1,000 preferred stock. The Series CD preferred stock issued has a dividend rate of 2.00%. The estimated fair value of the Series CD preferred stock as of September 29, 2010 was $16,159,000. The Series A preferred stock carried a dividend rate of 5.00% and had a book value of $29,026,000 as of September 29, 2010. The acquisition of the Series A shares in exchange for the Series CD shares resulted in a gain of $12,867,000 which was recorded as a credit to retained earnings. |
|
SOURCE First M&F Corporation
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