First M&F Posts Sixth Consecutive Profitable Quarter as Credit Continues to Improve
KOSCIUSKO, Miss., July 20, 2011 /PRNewswire/ -- First M&F Corp. (NASDAQ: FMFC) reported today a net profit for the quarter ended June 30, 2011 of $1.106 million. Net income for the quarter allocated to common shareholders was $.661 million, or $.07 basic and diluted earnings per share, compared to the first quarter of 2011 earnings of $.515 million, or $.06 basic and diluted earnings per share and earnings of $.826 million, or $.09 basic and diluted earnings per share for the second quarter of 2010.
Hugh Potts, Jr., Chairman and CEO commented, "The pathway to full recovery continued in the second quarter of 2011 for the sixth consecutive quarter of positive earnings. The progress from 2009 has been substantial and, in many aspects, remarkable. The pace remains less than brisk, yet has brought M&F quite a distance from the trough of the recessionary cycle. The trends are positive and consistent for which we are grateful."
Net Interest Income
Reported net interest income was improved by 11.54% compared to the second quarter of 2010, with the net interest margin increasing to 3.75% on a tax equivalent basis in the second quarter of 2011 as compared to 3.40% in the second quarter of 2010. The significant contributors to the increase in net interest income year over year was the improvement in spreads, primarily due to lower cost of funds followed by a continuing trend downward in new nonaccrual loans. The net interest margin for the first quarter of 2011 was 3.59% as compared to 3.57% for the fourth quarter of 2010 and 3.60% for the third quarter of 2010. Loan yields fell to 5.85% in the second quarter of 2011 from 6.08% in the second quarter of 2010, with downward pressure on loan pricing more than offsetting yield improvement from fewer new nonaccrual loans. Loan yields fell from the first quarter of 2011 to the second quarter as well. Average loans were $1.050 billion for the second quarter of 2011 as compared to $1.057 billion for the first quarter of 2011 and $1.038 billion during the second quarter of 2010. Loans decreased by $6.7 million in the second quarter of 2011 and fell by $8.9 million in the first quarter. Mr. Potts stated, "Widening margins are a reflection of interest rate conditions and credit improvement somewhat offset by continued sluggish loan demand and growth. Our objective is to outperform the economy...an exciting challenge."
Deposit costs decreased in the second quarter of 2011 from the first quarter of 2011 and from the second quarter of 2010, in response to the continuing low rate environment. Deposit costs were 1.20% in the second quarter of 2011 as compared to 1.75% in the second quarter of 2010. Deposits grew by $24.4 million during the second quarter of 2011 and have grown $80.7 million since the second quarter of 2010. Management plans to continue to focus on core deposit growth for 2010 to encourage relationship-driven deposits as a stable source of funding.
Loans as a percentage of assets were 64.36% at June 30, 2011 as compared to 66.19% at June 30, 2010 and 66.09% at December 31, 2010. Loans grew by less than 1% since the second quarter of 2010 while deposits grew by 6.00%.
Non-interest Income
Non-interest income, excluding securities transactions and impairment of investments, for the second quarter of 2011 fell by 4.62% compared to the second quarter of 2010, with deposit-related income down 3.62%. Insurance agency commissions were flat quarter over quarter.
A major part of non-interest income is from deposit sources. Although down overall, deposit revenues continue to be supported by debit card fee income, which grew by 18.74% in the second quarter of 2011 compared to the second quarter of 2010, while overdraft fee income fell by 12.96%.
Non-interest Expenses
Non-interest expenses were higher by 7.20% in the second quarter of 2011 as compared to the second quarter of 2010 largely due to higher foreclosed property expenses.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the second quarter of 2011 were .20% as compared to 2.01% for the same period in 2010. Net charge-offs totaled $.518 million for the quarter versus $5.194 million a year ago and $1.562 million in the first quarter of 2011. Non-accrual and 90-day past due loans as a percent of total loans were 3.20% at the end of the second quarter of 2011 as compared to 3.54% at the end of the 2010 quarter. The allowance for loan losses as a percentage of loans was 1.80% at June 30, 2011 as compared to 1.76% at June 30, 2010. The provision for loan losses fell slightly to $2.280 million in the second quarter of 2011 from $2.380 million in the second quarter of 2010. Mr. Potts commented, "Credit quality as reflected in a lower level of newly occurring credit issues and overall portfolio trends is significantly improving." Commenting further, Mr. Potts said, "The disposition of non-performing assets continues at a measured pace influenced greatly by the tepid and uncertain economic recovery."
Balance Sheet
Total assets at June 30, 2011 were $1.623 billion as compared to $1.604 billion at the end of 2010 and $1.568 billion at June 30, 2010. Total loans were $1.045 billion compared to $1.060 billion at the end of 2010 and $1.038 billion at June 30, 2010. Deposits were $1.424 billion compared to $1.375 billion at the end of 2010 and $1.344 billion at June 30, 2010. Total capital was $110.053 million, or $10.20 in book value per common share, at June 30, 2011. Mr. Potts further added, "The M&F team has demonstrated great individual and collective attitudes and dedication resulting in a positive and tenacious approach to dealing with the issues at hand." In closing Mr. Potts said, "Willingness to deal realistically with these issues with a positive, confident mindset has been both remarkable and gratifying. From the Boardroom to the back room, from our clients' offices to our lobbies, the M&F family is on task to remove encumbrances to full recovery for our customers, communities and shareholders."
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) |
||||
June 30 |
December 31 |
June 30 |
||
2011 |
2010 |
2010 |
||
Cash and due from banks |
$ 41,146 |
$ 45,099 |
$ 34,213 |
|
Interest bearing bank balances |
103,847 |
72,103 |
53,449 |
|
Federal funds sold |
25,000 |
25,000 |
31,000 |
|
Securities available for sale (cost of |
||||
$288,304, $274,421 and $275,867) |
293,133 |
276,929 |
282,508 |
|
Loans held for sale |
2,117 |
6,242 |
4,484 |
|
Loans |
1,044,595 |
1,060,146 |
1,038,115 |
|
Allowance for loan losses |
18,805 |
16,025 |
18,301 |
|
Net loans |
1,025,790 |
1,044,121 |
1,019,814 |
|
Bank premises and equipment |
40,564 |
40,696 |
41,659 |
|
Accrued interest receivable |
5,970 |
6,380 |
6,572 |
|
Other real estate |
30,650 |
31,125 |
31,231 |
|
Other intangible assets |
4,799 |
5,013 |
5,226 |
|
Other assets |
50,074 |
51,256 |
58,234 |
|
Total assets |
$ 1,623,090 |
$ 1,603,964 |
$ 1,568,390 |
|
Non-interest bearing deposits |
$ 243,626 |
$ 212,199 |
$ 227,825 |
|
Interest bearing deposits |
1,180,873 |
1,163,213 |
1,115,986 |
|
Total deposits |
1,424,499 |
1,375,412 |
1,343,811 |
|
Federal funds and repurchase agreements |
5,047 |
33,481 |
17,045 |
|
Other borrowings |
45,492 |
50,416 |
58,874 |
|
Junior subordinated debt |
30,928 |
30,928 |
30,928 |
|
Accrued interest payable |
1,306 |
1,470 |
1,831 |
|
Other liabilities |
5,765 |
5,192 |
8,194 |
|
Total liabilities |
1,513,037 |
1,496,899 |
1,460,683 |
|
Preferred stock, 30,000 shares issued and outstanding |
16,962 |
16,390 |
28,964 |
|
Common stock, 9,131,387, 9,106,803 and 9,069,346 |
||||
shares issued & outstanding |
45,657 |
45,534 |
45,347 |
|
Additional paid-in capital |
31,935 |
31,883 |
31,932 |
|
Nonvested restricted stock awards |
718 |
784 |
743 |
|
Retained earnings (deficit) |
13,224 |
12,225 |
(1,529) |
|
Accumulated other comprehensive income |
1,557 |
249 |
2,249 |
|
Total First M&F Corp equity |
110,053 |
107,065 |
107,706 |
|
Noncontrolling interests in subsidiaries |
- |
- |
1 |
|
Total equity |
110,053 |
107,065 |
107,707 |
|
Total liabilities & equity |
$ 1,623,090 |
$ 1,603,964 |
$ 1,568,390 |
|
First M&F Corporation and Subsidiary |
|||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||
(In thousands, except share data) |
|||||
Three Months Ended June 30 |
Six Months Ended June 30 |
||||
2011 |
2010 |
2011 |
2010 |
||
Interest and fees on loans |
$ 15,281 |
$ 15,687 |
$ 30,656 |
$ 31,075 |
|
Interest on loans held for sale |
27 |
46 |
68 |
124 |
|
Taxable investments |
1,931 |
2,032 |
3,702 |
4,077 |
|
Tax exempt investments |
302 |
392 |
616 |
822 |
|
Federal funds sold |
15 |
24 |
31 |
50 |
|
Interest bearing bank balances |
46 |
41 |
98 |
86 |
|
Total interest income |
17,602 |
18,222 |
35,171 |
36,234 |
|
Interest on deposits |
3,523 |
4,971 |
7,370 |
10,161 |
|
Interest on fed funds and repurchase agreements |
7 |
15 |
22 |
34 |
|
Interest on other borrowings |
509 |
846 |
1,033 |
1,912 |
|
Interest on subordinated debt |
292 |
492 |
750 |
988 |
|
Total interest expense |
4,331 |
6,324 |
9,175 |
13,095 |
|
Net interest income |
13,271 |
11,898 |
25,996 |
23,139 |
|
Provision for possible loan losses |
2,280 |
2,380 |
4,860 |
4,660 |
|
Net interest income after loan loss |
10,991 |
9,518 |
21,136 |
18,479 |
|
Service charges on deposits |
2,473 |
2,566 |
4,931 |
5,046 |
|
Mortgage banking income |
323 |
469 |
679 |
812 |
|
Agency commission income |
936 |
935 |
1,828 |
1,833 |
|
Fiduciary and brokerage income |
152 |
144 |
285 |
265 |
|
Other income |
572 |
558 |
1,411 |
1,517 |
|
Other-than-temporary impairment on securities, net of |
|||||
$87, $68, $143 and $2 recognized in other |
|||||
comprehensive income |
(85) |
(164) |
(381) |
(366) |
|
Gains on AFS securities |
341 |
708 |
1,690 |
1,712 |
|
Total noninterest income |
4,712 |
5,216 |
10,443 |
10,819 |
|
Salaries and employee benefits |
7,157 |
6,893 |
14,113 |
13,718 |
|
Net occupancy expense |
951 |
977 |
1,940 |
1,946 |
|
Equipment expenses |
451 |
658 |
916 |
1,309 |
|
Software and processing expenses |
395 |
417 |
794 |
819 |
|
FDIC insurance assessments |
923 |
839 |
1,697 |
1,685 |
|
Foreclosed property expenses |
1,468 |
419 |
3,821 |
875 |
|
Intangible asset amortization and impairment |
107 |
106 |
214 |
213 |
|
Other expenses |
2,851 |
3,033 |
5,619 |
6,186 |
|
Total noninterest expense |
14,303 |
13,342 |
29,114 |
26,751 |
|
Net income before taxes |
1,400 |
1,392 |
2,465 |
2,547 |
|
Income tax expense |
294 |
120 |
409 |
421 |
|
Net income |
1,106 |
1,272 |
2,056 |
2,126 |
|
Net income attributable to noncontrolling interests |
- |
- |
- |
1 |
|
Net income attributable to First M&F Corp |
$ 1,106 |
$ 1,272 |
$ 2,056 |
$ 2,125 |
|
Earnings Per Common Share Calculations: |
|||||
Net income attributable to First M&F Corp |
$ 1,106 |
$ 1,272 |
$ 2,056 |
$ 2,125 |
|
Dividends and accretion on preferred stock |
(440) |
(439) |
(872) |
(876) |
|
Net income applicable to common stock |
666 |
833 |
1,184 |
1,249 |
|
Earnings attributable to participating securities |
5 |
7 |
8 |
10 |
|
Net income allocated to common shareholders |
$ 661 |
$ 826 |
$ 1,176 |
$ 1,239 |
|
Weighted average shares (basic) |
9,118,267 |
9,069,346 |
9,113,706 |
9,069,346 |
|
Weighted average shares (diluted) |
9,118,267 |
9,069,346 |
9,113,706 |
9,069,346 |
|
Basic earnings per share |
$ 0.07 |
$ 0.09 |
$ 0.13 |
$ 0.14 |
|
Diluted earnings per share |
$ 0.07 |
$ 0.09 |
$ 0.13 |
$ 0.14 |
|
First M&F Corporation |
|||||
Financial Highlights |
|||||
YTD Ended |
YTD Ended |
YTD Ended |
YTD Ended |
||
June 30 |
December 31 |
June 30 |
December 31 |
||
2011 |
2010 |
2010 |
2009 |
||
Performance Ratios: |
|||||
Return on assets (annualized) |
0.26% |
0.25% |
0.26% |
-3.63% |
|
Return on equity (annualized) (a) |
3.83% |
3.74% |
4.06% |
-42.97% |
|
Return on common equity (annualized) (a) |
2.61% |
2.87% |
3.29% |
-53.73% |
|
Efficiency ratio (c) |
78.92% |
78.47% |
77.42% |
89.87% |
|
Net interest margin (annualized, tax-equivalent) |
3.67% |
3.43% |
3.28% |
3.29% |
|
Net charge-offs to average loans (annualized) |
0.40% |
1.65% |
2.00% |
4.50% |
|
Nonaccrual loans to total loans |
3.13% |
3.11% |
3.41% |
4.17% |
|
90 day accruing loans to total loans |
0.07% |
0.09% |
0.17% |
0.23% |
|
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
June 30 |
March 31 |
December 31 |
September 30 |
||
2011 |
2011 |
2010 |
2010 |
||
Per Common Share (diluted): |
|||||
Net income |
$ 0.07 |
$ 0.06 |
$ 0.03 |
$ 1.49 |
|
Cash dividends paid |
0.01 |
0.01 |
0.01 |
0.01 |
|
Book value |
10.20 |
9.98 |
9.96 |
10.18 |
|
Closing stock price |
3.78 |
4.08 |
3.74 |
3.38 |
|
Loan Portfolio Composition: (in thousands) |
|||||
Commercial, financial and agricultural |
$ 152,063 |
$ 137,620 |
$ 133,226 |
$ 137,824 |
|
Non-residential real estate |
621,546 |
642,372 |
646,731 |
626,747 |
|
Residential real estate |
187,932 |
189,290 |
195,184 |
196,299 |
|
Home equity loans |
38,891 |
38,622 |
40,305 |
40,523 |
|
Consumer loans |
44,163 |
43,357 |
44,700 |
45,620 |
|
Total loans |
$ 1,044,595 |
$ 1,051,261 |
$ 1,060,146 |
$ 1,047,013 |
|
Deposit Composition: (in thousands) |
|||||
Noninterest-bearing deposits |
$ 243,626 |
$ 208,457 |
$ 212,199 |
$ 220,556 |
|
NOW deposits |
397,281 |
411,898 |
364,209 |
307,533 |
|
MMDA deposits |
174,127 |
161,959 |
166,455 |
162,955 |
|
Savings deposits |
117,830 |
116,714 |
114,769 |
117,175 |
|
Core certificates of deposit under $100,000 |
255,847 |
261,087 |
268,272 |
267,350 |
|
Core certificates of deposit $100,000 and over |
217,540 |
222,617 |
234,500 |
228,543 |
|
Brokered certificates of deposit under $100,000 |
4,611 |
2,880 |
3,074 |
3,005 |
|
Brokered certificates of deposit $100,000 and over |
13,637 |
14,464 |
11,934 |
14,762 |
|
Total deposits |
$ 1,424,499 |
$ 1,400,076 |
$ 1,375,412 |
$ 1,321,879 |
|
Nonperforming Assets: (in thousands) |
|||||
Nonaccrual loans |
$ 32,800 |
$ 37,407 |
$ 33,127 |
$ 37,082 |
|
Other real estate |
30,650 |
29,660 |
31,125 |
38,631 |
|
Investment securities |
693 |
639 |
698 |
596 |
|
Total nonperforming assets |
$ 64,143 |
$ 67,706 |
$ 64,950 |
$ 76,309 |
|
Accruing loans past due 90 days or more |
$ 784 |
$ 338 |
$ 951 |
$ 858 |
|
Restructured loans (accruing) |
$ 22,988 |
$ 16,320 |
$ 18,052 |
$ 18,518 |
|
Total nonaccrual loan to loans |
3.13% |
3.55% |
3.11% |
3.53% |
|
Total nonperforming credit assets to loans and ORE |
5.89% |
6.19% |
5.85% |
6.95% |
|
Total nonperforming assets to assets ratio |
3.95% |
4.21% |
4.05% |
4.93% |
|
Allowance For Loan Loss Activity: (in thousands) |
|||||
Beginning balance |
$ 17,043 |
$ 16,025 |
$ 20,077 |
$ 18,301 |
|
Provision for loan loss |
2,280 |
2,580 |
2,280 |
2,280 |
|
Charge-offs |
(1,442) |
(2,147) |
(6,536) |
(1,485) |
|
Recoveries |
924 |
585 |
204 |
981 |
|
Ending balance |
$ 18,805 |
$ 17,043 |
$ 16,025 |
$ 20,077 |
|
First M&F Corporation |
|||||
Financial Highlights |
|||||
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
June 30 |
March 31 |
December 31 |
September 30 |
||
2011 |
2011 |
2010 |
2010 |
||
Condensed Income Statements: (in thousands) |
|||||
Interest income |
$ 17,602 |
$ 17,569 |
$ 17,603 |
$ 17,855 |
|
Interest expense |
4,331 |
4,844 |
5,235 |
5,561 |
|
Net interest income |
13,271 |
12,725 |
12,368 |
12,294 |
|
Provision for loan losses |
2,280 |
2,580 |
2,280 |
2,280 |
|
Noninterest revenues |
4,712 |
5,731 |
4,956 |
4,746 |
|
Noninterest expenses |
14,303 |
14,811 |
14,628 |
13,111 |
|
Net income before taxes |
1,400 |
1,065 |
416 |
1,649 |
|
Income tax expense (benefit) |
294 |
115 |
(226) |
407 |
|
Noncontrolling interest |
- |
- |
1 |
(3) |
|
Net income |
$ 1,106 |
$ 950 |
$ 641 |
$ 1,245 |
|
Preferred dividends |
(440) |
(432) |
(375) |
(441) |
|
Gain on exchange of preferred stock (Note 1) |
- |
- |
- |
12,867 |
|
Net income applicable to common stock |
666 |
518 |
266 |
13,671 |
|
Earnings (loss) attributable to participating securities |
5 |
3 |
(1) |
106 |
|
Net income allocated to common shareholders |
$ 661 |
$ 515 |
$ 267 |
$ 13,565 |
|
Tax-equivalent net interest income |
$ 13,495 |
$ 12,955 |
$ 12,624 |
$ 12,563 |
|
Selected Average Balances: (in thousands) |
|||||
Assets |
$ 1,598,871 |
$ 1,622,363 |
$ 1,574,426 |
$ 1,553,415 |
|
Loans held for investment |
1,050,136 |
1,056,903 |
1,041,453 |
1,046,242 |
|
Earning assets |
1,444,677 |
1,463,032 |
1,404,766 |
1,384,289 |
|
Deposits |
1,396,331 |
1,403,733 |
1,341,738 |
1,331,624 |
|
Equity |
108,911 |
107,633 |
109,110 |
108,535 |
|
Common equity |
92,096 |
91,102 |
90,612 |
79,547 |
|
Selected Ratios: |
|||||
Return on average assets (annualized) |
0.28% |
0.24% |
0.16% |
0.32% |
|
Return on average equity (annualized) (a) |
4.07% |
3.58% |
2.33% |
4.55% |
|
Return on average common equity (annualized) (a) |
2.90% |
2.31% |
1.16% |
4.01% |
|
Average equity to average assets |
6.81% |
6.63% |
6.93% |
6.99% |
|
Tangible equity to tangible assets (b) |
6.50% |
6.41% |
6.38% |
6.72% |
|
Tangible common equity to tangible assets (b) |
5.46% |
5.37% |
5.36% |
5.67% |
|
Net interest margin (annualized, tax-equivalent) |
3.75% |
3.59% |
3.57% |
3.60% |
|
Efficiency ratio (c) |
78.56% |
79.26% |
83.22% |
75.75% |
|
Net charge-offs to average loans (annualized) |
0.20% |
0.60% |
2.41% |
0.19% |
|
Nonaccrual loans to total loans |
3.13% |
3.55% |
3.11% |
3.53% |
|
90 day accruing loans to total loans |
0.07% |
0.03% |
0.09% |
0.08% |
|
Price to book |
0.37x |
0.41x |
0.38x |
0.33x |
|
Price to earnings |
13.50x |
17.00x |
31.17x |
0.57x |
|
First M&F Corporation |
|||||
Financial Highlights |
|||||
Historical Earnings Trends: |
Earnings |
Earnings |
|||
Applicable to |
Allocated to |
||||
Common |
Common |
||||
Earnings |
Stock |
Shareholders |
EPS |
||
(in thousands) |
(in thousands) |
(in thousands) |
(diluted) |
||
2Q 2011 |
$ 1,106 |
$ 666 |
$ 661 |
$ 0.07 |
|
1Q 2011 |
950 |
518 |
515 |
0.06 |
|
4Q 2010 |
641 |
266 |
267 |
0.03 |
|
3Q 2010 |
1,245 |
13,671 |
13,565 |
1.49 |
|
2Q 2010 |
1,272 |
833 |
826 |
0.09 |
|
1Q 2010 |
853 |
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) |
|
Revenue Statistics: |
Non-interest |
Non-interest |
|||
Revenues |
Revenues to |
Revenues to |
|||
Per FTE |
Ttl. Revenues |
Avg. Assets |
|||
(thousands) |
(percent) |
(percent) |
|||
2Q 2011 |
$ 36.6 |
25.88% |
1.18% |
||
1Q 2011 |
37.9 |
30.67% |
1.43% |
||
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% |
||
Expense Statistics: |
Non-interest |
||||
Expense to |
Efficiency |
||||
Avg. Assets |
Ratio |
||||
(percent) |
(percent) (c) |
||||
2Q 2011 |
3.59% |
78.56% |
|||
1Q 2011 |
3.70% |
79.26% |
|||
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% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
QTD June 2011 |
QTD June 2010 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
$ 71,291 |
0.26% |
$ 68,553 |
0.24% |
|
Federal funds sold |
25,000 |
0.25% |
39,548 |
0.24% |
|
Taxable investments (amortized cost) |
262,915 |
2.95% |
243,858 |
3.34% |
|
Tax-exempt investments (amortized cost) |
32,407 |
5.98% |
41,696 |
6.01% |
|
Loans held for sale |
2,928 |
3.75% |
6,363 |
2.90% |
|
Loans held for investment |
1,050,136 |
5.85% |
1,038,148 |
6.08% |
|
Total earning assets |
1,444,677 |
5.00% |
1,438,166 |
5.16% |
|
Non-earning assets |
154,194 |
160,119 |
|||
Total average assets |
$ 1,598,871 |
$ 1,598,285 |
|||
NOW |
$ 400,942 |
0.71% |
$ 322,791 |
1.06% |
|
MMDA |
167,657 |
0.77% |
143,445 |
1.13% |
|
Savings |
117,783 |
1.12% |
113,983 |
1.28% |
|
Certificates of Deposit |
493,722 |
1.76% |
559,825 |
2.40% |
|
Short-term borrowings |
8,637 |
0.34% |
10,728 |
0.57% |
|
Other borrowings |
77,440 |
4.15% |
111,440 |
4.82% |
|
Total interest bearing liabilities |
1,266,181 |
1.37% |
1,262,212 |
2.01% |
|
Non-interest bearing deposits |
216,227 |
222,318 |
|||
Non-interest bearing liabilities |
7,552 |
8,374 |
|||
Preferred equity |
16,815 |
28,931 |
|||
Common equity |
92,096 |
76,450 |
|||
Total average liabilities and equity |
$ 1,598,871 |
$ 1,598,285 |
|||
Net interest spread |
3.63% |
3.15% |
|||
Effect of non-interest bearing deposits |
0.20% |
0.30% |
|||
Effect of leverage |
-0.08% |
-0.05% |
|||
Net interest margin, tax-equivalent |
3.75% |
3.40% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.05% |
0.06% |
|||
Loans |
0.02% |
0.02% |
|||
Reported book net interest margin |
3.68% |
3.32% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
YTD June 2011 |
YTD June 2010 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
$ 82,515 |
0.24% |
$ 74,854 |
0.23% |
|
Federal funds sold |
25,000 |
0.25% |
44,670 |
0.22% |
|
Taxable investments (amortized cost) |
256,026 |
2.92% |
239,969 |
3.43% |
|
Tax-exempt investments (amortized cost) |
33,169 |
5.98% |
44,105 |
5.99% |
|
Loans held for sale |
3,593 |
3.81% |
8,920 |
2.81% |
|
Loans held for investment |
1,053,501 |
5.88% |
1,047,113 |
6.00% |
|
Total earning assets |
1,453,804 |
4.94% |
1,459,631 |
5.09% |
|
Non-earning assets |
156,748 |
158,780 |
|||
Total average assets |
$ 1,610,552 |
$ 1,618,411 |
|||
NOW |
$ 401,866 |
0.76% |
$ 326,422 |
1.07% |
|
MMDA |
164,635 |
0.81% |
145,276 |
1.11% |
|
Savings |
116,805 |
1.17% |
113,126 |
1.30% |
|
Certificates of Deposit |
503,896 |
1.81% |
568,309 |
2.45% |
|
Short-term borrowings |
16,235 |
0.27% |
12,223 |
0.56% |
|
Other borrowings |
78,843 |
4.56% |
121,573 |
4.81% |
|
Total interest bearing liabilities |
1,282,280 |
1.44% |
1,286,929 |
2.05% |
|
Non-interest bearing deposits |
212,809 |
217,756 |
|||
Non-interest bearing liabilities |
7,188 |
8,244 |
|||
Preferred equity |
16,674 |
28,900 |
|||
Common equity |
91,601 |
76,582 |
|||
Total average liabilities and equity |
$ 1,610,552 |
$ 1,618,411 |
|||
Net interest spread |
3.50% |
3.04% |
|||
Effect of non-interest bearing deposits |
0.21% |
0.30% |
|||
Effect of leverage |
-0.04% |
-0.06% |
|||
Net interest margin, tax-equivalent |
3.67% |
3.28% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.05% |
0.07% |
|||
Loans |
0.01% |
0.01% |
|||
Reported book net interest margin |
3.61% |
3.20% |
|||
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 Corp.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article