First M&F Corp. Reports Preliminary 2009 Results; Reports Additional Marks
KOSCIUSKO, Miss., Jan. 19 /PRNewswire-FirstCall/ -- First M&F Corp. (Nasdaq: FMFC) reported preliminary results for 2009 today of a net loss of $44.048 million attributable to common shareholders, or $4.86 basic and diluted earnings per share, compared to earnings of $0.522 million, or $0.06 basic and diluted earnings per share for 2008. The Company's final results are pending the completion of a review for potential impairment of goodwill as required by FASB ASC 350. The Company expects to complete this review and report its final results before March 16, 2010, the filing date for its 10-K with the Securities and Exchange Commission. The reported preliminary results do not include any fourth quarter impairment charge which may be required by the goodwill impairment study now underway. Any goodwill impairment will result in a non-cash charge to earnings, reducing goodwill and equity but will have no effect on regulatory capital since it is excluded from regulatory capital.
The fall in earnings was largely due to real estate loan impairments which led to extraordinary provision expense primarily in the first and fourth quarters. Hugh Potts, Jr., Chairman and CEO, commented, "Our 2009 loss is disappointing to say the least. The recognition of appropriate marks in our loan and other real estate portfolio has been painful in the effect on earnings and capital but should pave the way for an improved 2010 when positive earnings and capital retention are expected. We remain well-capitalized in spite of the toll of 2009. The intense scrutiny applied to our loan portfolio, while extraordinary by historical norms, was necessary and is now woven into the fabric of our risk management. We believe that risk management in the Company continues to improve including the reduction of portfolio concentrations and a redistribution of risk based on portfolio diversification and tighter underwriting standards."
Mr. Potts commented further, "We have reported in previous periods some signs of a lessening of the pace of extraordinary impairments. This is still our outlook for 2010. The deterioration of acquisition, construction and development loans has begun to somewhat stabilize and our fourth quarter provisioning and charge-offs reflects the fine-tuning of our risk measurement process."
Net income for the quarter ended December 31, 2009 was a loss of $10.881 million attributable to common shareholders, or $1.20 basic and diluted earnings per share, compared to a loss of $4.300 million, or $.47 basic and diluted earnings per share for the fourth quarter of 2008.
For the fourth quarter of 2009 the annualized return on assets was a negative 2.49%, while return on equity was a negative 31.38%. Comparatively, the return on assets for the fourth quarter of 2008 was a negative 1.08%, with a negative return on equity of 12.27%. The return on assets for 2009 was a negative 2.62%, while the return on equity was a negative 30.92%.
Net Interest Income
Net interest income was down by 4.41% compared to the fourth quarter of 2008, with the net interest margin decreasing to 3.28% in the fourth quarter of 2009 as compared to 3.60% in the fourth quarter of 2008. The significant contributor to the decrease in net interest income was erosion in spreads as non-performing assets, primarily non-accrual loans, steadily increased throughout the year. "The margin compression of 2009 should dissipate and the margin should improve going forward as non-performing assets are turned to cash or are rehabilitated," said Mr. Potts. The net interest margin for the third quarter of 2009 was 3.40% as compared to 3.16% for the second quarter of 2009 and 3.33% for the first quarter of 2009. Loan yields decreased to 6.04% in the fourth quarter of 2009 from 6.43% in the fourth quarter of 2008. Loan yields also decreased slightly from the third quarter of 2009 to the fourth quarter. Average loans were $1.103 billion for the fourth quarter of 2009 as compared to $1.107 billion for the third quarter of 2009 and $1.202 million during the fourth quarter of 2008. Loans fell by $40.768 million in the fourth quarter of 2009 and by $8.633 million in the third quarter. Deposit costs fell in the fourth quarter of 2009 from the third quarter of 2009 and from the fourth quarter of 2008, as deposits were re-priced downward throughout 2009 in the current stable low-rate environment. Deposit costs were 1.87% in the fourth quarter of 2009 as compared to 2.63% in the fourth quarter of 2008. Deposits grew by $31.446 million during the fourth quarter of 2009. Management plans to continue to emphasize and focus on core deposit growth by developing relationship-driven deposit gathering while de-emphasizing non-core deposit funding such as public deposits. Loans as a percentage of assets were 63.01% at December 31, 2009 as compared to 73.68% at December 31, 2008 and 65.56% at September 30, 2009. Loans fell by 10.05% during 2009 while deposits grew by 10.06%.
Non-interest Income
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, for the fourth quarter of 2009 was flat compared to the fourth quarter of 2008, with deposit-related income down by 3.04% and mortgage income up 110.11%. Insurance agency commissions were down by 8.35%.
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, was down 3.70% for 2009 versus 2008. Over half of non-interest income is from deposit sources, which was down 6.12% year over year. Deposit revenues continue to be supported by debit card fee income, which increased by 18.04% in 2009 over 2008, and overdraft fee income, which, however, decreased by 12.01% for the year. Commission revenues from traditional insurance products were down 5.92% year over year.
Non-interest income includes non-cash other-than-temporary impairment charges of $.417 million in the fourth quarter 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 were up by 27.13% in the fourth quarter of 2009 as compared to the fourth quarter of 2008. Most of the increase in expenses was due to asset quality issues in the form of higher Other Real Estate expenses and write-downs and higher FDIC insurance fees. Salaries and benefits were down slightly.
Non-interest expenses increased by 45.72% for 2009 as compared to 2008. Most of the increase in total non-interest expense year over year was due to significant increases in losses on Other Real Estate, a significant increase in FDIC insurance assessments and the impairment of goodwill and other intangibles. Excluding those significant items, non-interest expense fell year over year by .50%. Salaries and benefits were down by 2.21% for 2009. The number of full-time equivalent employees at the end of 2009 was 517 as compared to 525 at the end of the third quarter of 2009 and 547 at the end of 2008.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the fourth quarter of 2009 were 8.87% as compared to 1.79% for the same period in 2008. Non-accrual and 90-day past due loans as a percent of total loans were 4.40% at the end of 2009 as compared to 2.22% at the end of 2008. Annualized net charge-offs as a percentage of average loans for 2009 were 4.50% as compared to .75% for 2008. The allowance for loan losses as a percentage of loans was 2.25% at December 31, 2009 as compared to 2.10% at December 31, 2008. The provision for loan losses increased in 2009 from $19.734 million in 2008 to $49.601 million in 2009. The additional provisioning was made primarily in light of continued deterioration in appraised collateral values on collateral-dependent real estate loans and other real estate and disposition experience.
Mr. Potts commented, "Non-performing assets fell to $70.6 million at year-end, the result of carefully orchestrated problem credit remediation or resolution through either foreclosure and ultimate sale or charge off. The work-out process is improving and accelerating as 2009 moves into 2010. Continued high provisioning in the quarter, after a large provision in the first quarter, reflects appropriate and sometimes rather severe marks based on continuing real estate price adjustments from reappraisals but also from experience as we build a database based on the realities of the market."
Balance Sheet
Total assets grew by 5.19% in 2009, to $1.680 billion from $1.597 billion. Total equity fell to $121.351 million, a 10.75% decrease from 2008. Total loans were $1.058 billion compared to $1.177 billion at the end of 2008. Deposits were $1.388 billion compared to $1.261 billion at the end of 2008. Book value per common share decreased to $10.20 per share at the end of 2009, an 11.84% decrease from 2008.
In conclusion Mr. Potts said, "The arduous and expensive experience of 2008 and 2009 is now behind us. The M&F management team and family of associates have made many necessary, difficult decisions. The focus, however, is now ahead. The prospects for 2010 and beyond are much more encouraging."
Growth
In the fourth quarter of 2008 the Company closed two branches in Brandon, Rankin County, Mississippi and replaced them with one new branch in that county. 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 plans to close 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 |
||
2009 |
2008 |
||
Cash and due from banks |
42,446 |
47,738 |
|
Interest bearing bank balances |
84,746 |
6,556 |
|
Federal funds sold |
70,000 |
9,350 |
|
Securities available for sale (cost of |
|||
$280,514 and $223,882) |
284,599 |
227,145 |
|
Loans held for sale |
10,266 |
7,698 |
|
Loans |
1,058,340 |
1,176,595 |
|
Allowance for loan losses |
24,014 |
24,918 |
|
Net loans |
1,034,326 |
1,151,677 |
|
Bank premises and equipment |
42,919 |
44,642 |
|
Accrued interest receivable |
7,598 |
9,832 |
|
Other real estate |
23,578 |
11,061 |
|
Goodwill |
16,772 |
32,572 |
|
Other intangible assets |
5,439 |
7,127 |
|
Other assets |
57,066 |
41,467 |
|
Total assets |
1,679,755 |
1,596,865 |
|
Non-interest bearing deposits |
228,579 |
178,689 |
|
Interest bearing deposits |
1,159,684 |
1,082,698 |
|
Total deposits |
1,388,263 |
1,261,387 |
|
Federal funds and repurchase agreements |
8,642 |
9,728 |
|
Other borrowings |
122,510 |
151,547 |
|
Junior subordinated debt |
30,928 |
30,928 |
|
Accrued interest payable |
2,933 |
3,537 |
|
Other liabilities |
5,128 |
3,770 |
|
Total liabilities |
1,558,404 |
1,460,897 |
|
Preferred stock, 30,000 shares issued and outstanding |
28,838 |
- |
|
Common stock, 9,069,346 and 9,063,346 |
|||
shares issued & outstanding |
45,347 |
45,317 |
|
Additional paid-in capital |
31,926 |
30,447 |
|
Nonvested restricted stock awards |
734 |
780 |
|
Retained earnings |
14,177 |
60,133 |
|
Accumulated other comprehensive income |
328 |
(727) |
|
Total First M&F Corp equity |
121,350 |
135,950 |
|
Noncontrolling interests in subsidiaries |
1 |
18 |
|
Total equity |
121,351 |
135,968 |
|
Total liabilities & equity |
1,679,755 |
1,596,865 |
|
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 |
||||||
2009 |
2008 |
2009 |
2008 |
||||
Interest and fees on loans |
16,635 |
19,327 |
66,782 |
81,487 |
|||
Interest on loans held for sale |
86 |
58 |
278 |
299 |
|||
Taxable investments |
2,213 |
2,130 |
9,531 |
9,023 |
|||
Tax exempt investments |
488 |
557 |
2,105 |
2,164 |
|||
Federal funds sold |
34 |
38 |
95 |
182 |
|||
Interest bearing bank balances |
30 |
13 |
42 |
133 |
|||
Total interest income |
19,486 |
22,123 |
78,833 |
93,288 |
|||
Interest on deposits |
5,452 |
7,119 |
23,701 |
32,255 |
|||
Interest on fed funds and repurchase agreements |
14 |
68 |
97 |
327 |
|||
Interest on other borrowings |
1,329 |
1,682 |
5,449 |
6,717 |
|||
Interest on subordinated debt |
504 |
505 |
1,992 |
1,993 |
|||
Total interest expense |
7,299 |
9,374 |
31,239 |
41,292 |
|||
Net interest income |
12,187 |
12,749 |
47,594 |
51,996 |
|||
Provision for possible loan losses |
15,761 |
10,684 |
49,601 |
19,734 |
|||
Net interest income (expense) after loan loss |
(3,574) |
2,065 |
(2,007) |
32,262 |
|||
Service charges on deposits |
2,838 |
2,927 |
10,976 |
11,692 |
|||
Mortgage banking income |
395 |
188 |
1,823 |
1,202 |
|||
Agency commission income |
856 |
934 |
3,881 |
4,125 |
|||
Fiduciary and brokerage income |
117 |
132 |
489 |
585 |
|||
Other income |
622 |
650 |
3,174 |
3,521 |
|||
Other-than-temporary impairment on securities, net of |
|||||||
$1,503 and $2,715 charged to other comprehensive |
|||||||
income |
(417) |
- |
(829) |
- |
|||
Gains on AFS securities |
14 |
1 |
456 |
6 |
|||
Total noninterest income |
4,425 |
4,832 |
19,970 |
21,131 |
|||
Salaries and employee benefits |
6,748 |
6,761 |
28,314 |
28,954 |
|||
Net occupancy expense |
1,306 |
1,095 |
4,614 |
4,210 |
|||
Equipment expenses |
682 |
923 |
2,877 |
3,594 |
|||
Software and processing expenses |
440 |
597 |
1,898 |
2,072 |
|||
FDIC insurance assessments |
711 |
325 |
3,276 |
575 |
|||
Foreclosed property expenses |
4,493 |
1,106 |
7,283 |
1,913 |
|||
Goodwill impairment |
- |
- |
15,800 |
- |
|||
Intangible asset amortization and impairment |
107 |
121 |
1,688 |
485 |
|||
Other expenses |
3,617 |
3,313 |
13,350 |
12,481 |
|||
Total noninterest expense |
18,104 |
14,241 |
79,100 |
54,284 |
|||
Net income (loss) before taxes |
(17,253) |
(7,344) |
(61,137) |
(891) |
|||
Income tax expense (benefit) |
(6,715) |
(2,991) |
(18,104) |
(1,436) |
|||
Net income (loss) |
(10,538) |
(4,353) |
(43,033) |
545 |
|||
Net income (loss) attributable to noncontrolling interests |
1 |
4 |
(6) |
19 |
|||
Net income (loss) attributable to First M&F Corp |
(10,539) |
(4,357) |
(43,027) |
526 |
|||
Earnings Per Common Share Calculations: |
|||||||
Net income (loss) attributable to First M&F Corp |
(10,539) |
(4,357) |
(43,027) |
526 |
|||
Dividends and accretion on preferred stock |
436 |
- |
1,464 |
- |
|||
Net income (loss) applicable to common stock |
(10,975) |
(4,357) |
(44,491) |
526 |
|||
Earnings (loss) attributable to participating securities (a) |
(94) |
(57) |
(443) |
4 |
|||
Net income (loss) allocated to common shareholders |
(10,881) |
(4,300) |
(44,048) |
522 |
|||
Weighted average shares (basic) |
9,069,346 |
9,061,862 |
9,066,880 |
9,061,730 |
|||
Weighted average shares (diluted) |
9,069,346 |
9,061,862 |
9,066,880 |
9,062,384 |
|||
Basic earnings (loss) per share (a) |
($1.20) |
($0.47) |
($4.86) |
$0.06 |
|||
Diluted earnings (loss) per share |
($1.20) |
($0.47) |
($4.86) |
$0.06 |
|||
First M&F Corporation |
|||
Financial Highlights |
|||
YTD Ended |
YTD Ended |
||
December 31 |
December 31 |
||
2009 |
2008 |
||
Performance Ratios: |
|||
Return on assets (annualized) |
-2.62% |
0.03% |
|
Return on equity (annualized) (b) |
-30.92% |
0.37% |
|
Return on common equity (annualized) (b) |
-39.02% |
0.37% |
|
Efficiency ratio |
89.87% |
72.77% |
|
Net interest margin (annualized, tax-equivalent) |
3.29% |
3.67% |
|
Net charge-offs to average loans (annualized) |
4.50% |
0.75% |
|
Nonaccrual loans to total loans |
4.17% |
1.74% |
|
90 day accruing loans to total loans |
0.23% |
0.48% |
|
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
December 31 |
September 30 |
June 30 |
March 31 |
||
2009 |
2009 |
2009 |
2009 |
||
Per Common Share (diluted): |
|||||
Net income (loss) |
(1.20) |
(0.06) |
(0.61) |
(2.99) |
|
Cash dividends paid |
0.01 |
0.01 |
0.01 |
0.13 |
|
Book value |
10.20 |
11.57 |
11.46 |
12.14 |
|
Closing stock price |
2.21 |
3.75 |
4.07 |
6.12 |
|
Loan Portfolio Composition: (in thousands) |
|||||
Commercial, financial and agricultural |
120,446 |
124,836 |
135,325 |
132,812 |
|
Non-residential real estate |
643,761 |
677,777 |
672,359 |
720,783 |
|
Residential real estate |
195,361 |
197,760 |
205,068 |
204,003 |
|
Home equity loans |
44,560 |
44,250 |
44,827 |
45,116 |
|
Consumer loans |
44,598 |
44,318 |
40,728 |
37,451 |
|
Other loans |
9,614 |
10,167 |
9,434 |
9,087 |
|
Total loans |
1,058,340 |
1,099,108 |
1,107,741 |
1,149,252 |
|
Deposit Composition: (in thousands) |
|||||
Noninterest-bearing deposits |
228,579 |
196,999 |
181,163 |
191,386 |
|
NOW deposits |
309,545 |
294,303 |
286,265 |
283,521 |
|
MMDA deposits |
161,570 |
155,858 |
163,112 |
179,313 |
|
Savings deposits |
112,764 |
112,370 |
113,061 |
114,529 |
|
Certificates of deposit under $100,000 |
279,810 |
283,531 |
281,698 |
274,187 |
|
Certificates of deposit $100,000 and over |
277,919 |
306,728 |
274,472 |
258,664 |
|
Brokered certificates of deposit under $100,000 |
18,076 |
7,028 |
9,776 |
11,560 |
|
Total deposits |
1,388,263 |
1,356,817 |
1,309,547 |
1,313,160 |
|
Nonperforming Assets: (in thousands) |
|||||
Nonaccrual loans |
44,549 |
69,019 |
74,420 |
52,084 |
|
Other real estate |
23,578 |
28,114 |
22,575 |
10,907 |
|
Investment securities |
825 |
610 |
1,047 |
- |
|
Total nonperforming assets |
68,952 |
97,743 |
98,042 |
62,991 |
|
Accruing loans past due 90 days or more |
2,479 |
6,351 |
5,608 |
1,409 |
|
Restructured loans (accruing) |
4,620 |
3,664 |
3,664 |
3,664 |
|
Total nonaccrual loan to loans |
4.17% |
6.24% |
6.69% |
4.51% |
|
Total nonperforming credit assets to loans and ORE |
6.24% |
8.57% |
8.54% |
5.40% |
|
Total nonperforming assets to assets ratio |
4.10% |
5.83% |
6.03% |
3.84% |
|
Allowance For Loan Loss Activity: (in thousands) |
|||||
Beginning balance |
32,695 |
31,323 |
41,506 |
24,918 |
|
Provision for loan loss |
15,761 |
4,805 |
9,195 |
19,840 |
|
Charge-offs |
(24,556) |
(3,597) |
(19,579) |
(3,508) |
|
Recoveries |
114 |
164 |
201 |
256 |
|
Ending balance |
24,014 |
32,695 |
31,323 |
41,506 |
|
First M&F Corporation |
|||||
Financial Highlights |
|||||
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
December 31 |
September 30 |
June 30 |
March 31 |
||
2009 |
2009 |
2009 |
2009 |
||
Condensed Income Statements: (in thousands) |
|||||
Interest income |
19,486 |
19,926 |
19,160 |
20,261 |
|
Interest expense |
7,299 |
7,628 |
7,895 |
8,417 |
|
Net interest income |
12,187 |
12,298 |
11,265 |
11,844 |
|
Provision for loan losses |
15,761 |
4,805 |
9,195 |
19,840 |
|
Noninterest revenues |
4,425 |
5,381 |
4,976 |
5,188 |
|
Noninterest expenses |
18,104 |
14,140 |
15,815 |
31,041 |
|
Net income (loss) before taxes |
(17,253) |
(1,266) |
(8,769) |
(33,849) |
|
Income tax expense (benefit) |
(6,715) |
(1,137) |
(3,660) |
(6,592) |
|
Noncontrolling interest |
1 |
7 |
2 |
(16) |
|
Net income (loss) |
(10,539) |
(136) |
(5,111) |
(27,241) |
|
Preferred dividends |
436 |
435 |
439 |
154 |
|
Net income (loss) applicable to common stock |
(10,975) |
(571) |
(5,550) |
(27,395) |
|
Earnings (loss) attributable to participating securities (a) |
(94) |
9 |
(52) |
(306) |
|
Net income (loss) allocated to common shareholders |
(10,881) |
(580) |
(5,498) |
(27,089) |
|
Tax-equivalent net interest income |
12,537 |
12,670 |
11,654 |
12,216 |
|
Selected Average Balances: (in thousands) |
|||||
Assets |
1,676,504 |
1,646,710 |
1,611,513 |
1,645,555 |
|
Loans held for investment |
1,093,694 |
1,100,109 |
1,131,370 |
1,165,086 |
|
Earning assets |
1,518,371 |
1,478,169 |
1,478,819 |
1,486,073 |
|
Deposits |
1,361,049 |
1,315,758 |
1,303,615 |
1,304,905 |
|
Equity |
133,240 |
135,365 |
138,120 |
150,128 |
|
Common equity |
104,471 |
106,694 |
109,510 |
135,791 |
|
Selected Ratios: |
|||||
Return on average assets (annualized) |
-2.49% |
-0.03% |
-1.27% |
-6.71% |
|
Return on average equity (annualized) (b) |
-31.38% |
-0.40% |
-14.84% |
-73.59% |
|
Return on average common equity (annualized) (b) |
-41.67% |
-2.13% |
-20.33% |
-81.82% |
|
Average equity to average assets |
7.95% |
8.22% |
8.57% |
9.12% |
|
Tangible equity to tangible assets (c) |
5.98% |
6.74% |
6.88% |
7.18% |
|
Tangible common equity to tangible assets (c) |
4.24% |
5.00% |
5.09% |
5.41% |
|
Net interest margin (annualized, tax-equivalent) |
3.28% |
3.40% |
3.16% |
3.33% |
|
Efficiency ratio |
106.73% |
78.34% |
95.10% |
80.41% |
|
Net charge-offs to average loans (annualized) |
8.87% |
1.24% |
6.87% |
1.13% |
|
Nonaccrual loans to total loans |
4.17% |
6.24% |
6.69% |
4.51% |
|
90 day accruing loans to total loans |
0.23% |
0.57% |
0.50% |
0.12% |
|
Price to book (x) |
0.22 |
0.32 |
0.36 |
0.50 |
|
Price to earnings (x) |
N/A |
N/A |
N/A |
N/A |
|
First M&F Corporation |
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Financial Highlights |
|||||
Historical Earnings Trends: (a) |
Earnings |
Earnings |
|||
Applicable to |
Allocated to |
||||
Common |
Common |
||||
Earnings |
Stock |
Shareholders |
EPS |
||
(in thousands) |
(in thousands) |
(in thousands) |
(diluted) |
||
4Q 2009 |
(10,539) |
(10,975) |
(10,881) |
(1.20) |
|
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) |
|
1Q 2008 |
3,139 |
3,139 |
3,097 |
0.34 |
|
4Q 2007 |
3,561 |
3,561 |
3,517 |
0.38 |
|
3Q 2007 |
3,808 |
3,808 |
3,760 |
0.42 |
|
2Q 2007 |
3,535 |
3,535 |
3,492 |
0.38 |
|
Revenue Statistics: |
Non-interest |
Non-interest |
|||
Revenues |
Revenues to |
Revenues to |
Contribution |
||
Per FTE |
Ttl. Revenues |
Avg. Assets |
Margin |
||
(thousands) |
(percent) |
(percent) |
(percent) (d) |
||
4Q 2009 |
32.8 |
26.09% |
1.05% |
60.22% |
|
3Q 2009 |
34.4 |
29.81% |
1.30% |
60.64% |
|
2Q 2009 |
31.2 |
29.92% |
1.24% |
56.11% |
|
1Q 2009 |
32.3 |
29.81% |
1.28% |
58.85% |
|
4Q 2008 |
32.8 |
26.90% |
1.19% |
62.36% |
|
3Q 2008 |
34.4 |
29.16% |
1.37% |
61.78% |
|
2Q 2008 |
33.4 |
28.13% |
1.31% |
61.00% |
|
1Q 2008 |
33.7 |
29.03% |
1.34% |
59.68% |
|
4Q 2007 |
34.3 |
27.31% |
1.29% |
61.21% |
|
3Q 2007 |
35.0 |
27.83% |
1.36% |
62.58% |
|
2Q 2007 |
33.4 |
26.23% |
1.28% |
61.04% |
|
Expense Statistics: |
Non-interest |
||||
Expense to |
Efficiency |
||||
Avg. Assets |
Ratio |
||||
(percent) |
(percent) (e) |
||||
4Q 2009 |
4.28% |
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% |
|||
1Q 2008 |
3.25% |
70.33% |
|||
4Q 2007 |
3.19% |
67.78% |
|||
3Q 2007 |
3.24% |
66.08% |
|||
2Q 2007 |
3.26% |
67.02% |
|||
First M&F Corporation |
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Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
QTD December 2009 |
QTD December 2008 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
59,852 |
0.20% |
9,086 |
0.56% |
|
Federal funds sold |
65,479 |
0.20% |
19,568 |
0.78% |
|
Taxable investments (amortized cost) |
237,842 |
3.69% |
161,999 |
5.23% |
|
Tax-exempt investments (amortized cost) |
52,275 |
5.91% |
57,598 |
6.13% |
|
Loans held for sale |
9,229 |
3.71% |
5,208 |
4.44% |
|
Loans held for investment |
1,093,694 |
6.06% |
1,196,806 |
6.44% |
|
Total earning assets |
1,518,371 |
5.18% |
1,450,265 |
6.17% |
|
Non-earning assets |
158,133 |
161,179 |
|||
Total average assets |
1,676,504 |
1,611,444 |
|||
NOW |
296,806 |
1.18% |
214,154 |
1.49% |
|
MMDA |
169,439 |
1.14% |
179,120 |
2.25% |
|
Savings |
112,482 |
1.36% |
114,742 |
2.02% |
|
Certificates of Deposit |
576,285 |
2.54% |
568,279 |
3.30% |
|
Short-term borrowings |
10,036 |
0.56% |
13,127 |
2.08% |
|
Other borrowings |
163,422 |
4.45% |
194,655 |
4.47% |
|
Total interest bearing liabilities |
1,328,470 |
2.18% |
1,284,077 |
2.90% |
|
Non-interest bearing deposits |
206,037 |
178,088 |
|||
Non-interest bearing liabilities |
8,757 |
7,967 |
|||
Preferred equity |
28,768 |
- |
|||
Common equity |
104,472 |
141,312 |
|||
Total average liabilities and equity |
1,676,504 |
1,611,444 |
|||
Net interest spread |
3.00% |
3.27% |
|||
Effect of non-interest bearing deposits |
0.29% |
0.35% |
|||
Effect of leverage |
-0.01% |
-0.02% |
|||
Net interest margin, tax-equivalent |
3.28% |
3.60% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.08% |
0.09% |
|||
Loans |
0.02% |
0.01% |
|||
Reported book net interest margin |
3.18% |
3.50% |
|||
First M&F Corporation |
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Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
YTD December 2009 |
YTD December 2008 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
25,151 |
0.17% |
6,954 |
1.92% |
|
Federal funds sold |
43,871 |
0.22% |
9,810 |
1.86% |
|
Taxable investments (amortized cost) |
234,942 |
4.06% |
176,284 |
5.12% |
|
Tax-exempt investments (amortized cost) |
56,021 |
5.99% |
55,990 |
6.16% |
|
Loans held for sale |
8,120 |
3.42% |
6,170 |
4.85% |
|
Loans held for investment |
1,122,308 |
5.97% |
1,200,628 |
6.80% |
|
Total earning assets |
1,490,413 |
5.39% |
1,455,836 |
6.51% |
|
Non-earning assets |
154,747 |
165,867 |
|||
Total average assets |
1,645,160 |
1,621,703 |
|||
NOW |
280,484 |
1.28% |
211,006 |
1.50% |
|
MMDA |
167,425 |
1.34% |
177,582 |
2.35% |
|
Savings |
113,397 |
1.48% |
115,027 |
2.30% |
|
Certificates of Deposit |
569,623 |
2.84% |
587,695 |
3.79% |
|
Short-term borrowings |
10,448 |
0.93% |
13,860 |
2.36% |
|
Other borrowings |
165,548 |
4.49% |
186,978 |
4.66% |
|
Total interest bearing liabilities |
1,306,925 |
2.39% |
1,292,148 |
3.20% |
|
Non-interest bearing deposits |
190,541 |
179,237 |
|||
Non-interest bearing liabilities |
8,538 |
8,312 |
|||
Preferred equity |
25,141 |
- |
|||
Common equity |
114,015 |
142,006 |
|||
Total average liabilities and equity |
1,645,160 |
1,621,703 |
|||
Net interest spread |
3.00% |
3.31% |
|||
Effect of non-interest bearing deposits |
0.30% |
0.39% |
|||
Effect of leverage |
-0.01% |
-0.03% |
|||
Net interest margin, tax-equivalent |
3.29% |
3.67% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.08% |
0.09% |
|||
Loans |
0.02% |
0.01% |
|||
Reported book net interest margin |
3.19% |
3.57% |
|||
First M&F Corporation |
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Notes to Financial Schedules |
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(a) Effective January 1, 2009 the Company adopted FSP EITF 03-6-1 which clarifies that unvested restricted stock awards |
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that contain nonforfeitable rights to dividends are considered participating securities and therefore are included in the |
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two-class method calculation of earnings per share. Under this method, all distributed and undistributed earnings are |
|||||
allocated to the Company's common shares and the Company's restricted stock grant shares based on their respective |
|||||
rights to receive dividends. Earnings per share have been revised to reflect the retrospective application of the FSP. |
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(b) 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 |
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(Total First M&F Corp equity minus preferred stock) |
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(c) 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) |
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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) |
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(d) Contribution margin is calculated as: (Tax-equivalent net interest income plus noninterest revenues minus salaries |
|||||
and benefits) divided by (Tax-equivalent net interest income plus noninterest revenues) |
|||||
(e) Efficiency ratio is calculated as: (Noninterest expense) divided by (Tax-equivalent net interest income plus |
|||||
noninterest revenues) |
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SOURCE First M&F Corp.
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