First South Bancorp, Inc. Reports Increased March 31, 2017 Quarterly Operating Results, Total Assets in Excess of $1.0 Billion
WASHINGTON, N.C., April 20, 2017 /PRNewswire/ -- First South Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), the parent holding company of First South Bank (the "Bank"), reports its unaudited financial results for the quarter ended March 31, 2017.
The Company continues to achieve strong earnings and margin expansion through robust loan and deposit growth. The Company generated net income for the first quarter of 2017 of $1.9 million, which represented a $411,000 or 28.2% increase when compared to the $1.5 million of net income generated in the first quarter of 2016. As a result, the Company's diluted earnings per common share (EPS) for the first quarter of 2017 increased 33.3% to $0.20 per share, from $0.15 per share for the first quarter of 2016. The net interest margin for the quarter ended March 31, 2017 was 3.74%, an eight basis point increase above the 3.66% posted for the first quarter of 2016. Over the past twelve months, loans and leases held for investment (HFI) and total deposits have grown $88.1 million and $101.2 million, respectively, bringing total assets to in excess of $1.0 billion.
Chief Executive Officer Bruce Elder said, "We are pleased to announce another quarter of solid financial results. We have again demonstrated our ability to grow the balance sheet in a profitable fashion while driving efficiencies by continuing to analyze how we deliver You First banking to our customer base. Our growth of loans and deposits over the last twelve months has generated increases in net interest income and core, non-interest income. Coupled with controlled non-interest expenses, our growth has translated into improved earnings, higher margins and dividend levels, greater efficiency and improved returns on average assets and equity from the prior year first quarter."
HIGHLIGHTS
- Strong quarterly earnings performance with net income of $1.9 million, diluted EPS of $0.20 per share, return on average assets (ROA) of 0.75%, return on average equity (ROE) of 8.52% and return on average tangible common equity* (ROTCE) of 9.32%.
- Pre-tax, pre-provision operating earnings* for the quarter of $3.0 million are 48% higher than the $2.0 million reported for the prior year first quarter.
- Total assets grew to $1.04 billion at March 31, 2017, the Company's first quarter-end reporting period to surpass the billion dollar threshold.
- Loans and leases HFI grew $88.1 million or 13.8% during the past twelve months to $727.1 million.
- Deposits grew $101.2 million or 12.4% during the past twelve months to $919.9 million.
- Total non-interest bearing deposits grew 24.6% to $204.6 million on a year-over-year basis.
- Net interest margin expanded to 3.74% for the quarter, compared to 3.66% for the first quarter of 2016.
- Asset quality metrics continue to improve.
- Continued to maintain a strong capital position.
- The consolidation of two branches into nearby locations should improve future efficiency.
- Increased quarterly dividend payment rate to $0.035 per share, a 16.7% increase.
The Company's loan and deposit growth continues to support revenue increases, allowing for net interest margin expansion despite the prevailing low interest rate environment. As a result, our net interest income (NII) grew to $8.7 million for the first quarter of 2017 from $7.8 million for the comparative first quarter of 2016.
Total non-interest income was $3.3 million, or 27.6% of total revenue (net interest income plus noninterest income) in the first quarter of 2017, compared to $3.6 million, or 31.5% of total revenue in the comparative 2016 first quarter. Non-interest income for the first quarter of 2016 included a $284,000 gain on the sale of securities as well as the receipt of a $230,000 non-recurring fee. The sale of other real estate owned (OREO) during the first quarter of 2017 resulted in $82,000 of net gains, compared to a $12,000 net loss posted during the first quarter of 2016.
The Company's efficiency ratio for the first quarter of 2017 improved to 74.92%, from 80.74% in the first quarter of 2016. Non-interest expenses in the first quarter of 2017 declined to $9.0 million, from $9.1 million in the first quarter of 2016.
Income tax expense was $778,000 for the 2017 first quarter, compared to $574,000 for the 2016 first quarter. The effective income tax rates were 29.36% and 28.20% for these reporting periods, respectively.
BALANCE SHEET GROWTH
Loans and leases HFI totaled $727.1 million at March 31, 2017, increasing $26.5 million, over the $700.6 million held at December 31, 2016 and increasing $88.1 million from March 31, 2016. Loans held for sale declined to $2.5 million at March 31, 2017, from the $5.1 million held at the end of fiscal year 2016. Investment securities and interest-bearing deposits with other banks increased by $27.7 million to $244.1 million at March 31, 2017, from $216.4 million at year-end 2016, resulting primarily from strong deposit growth during the quarter.
Deposits totaled $919.9 million at March 31, 2017, increasing $49.3 million, or 5.7%, from $870.6 million at December 31, 2016, and increasing $101.2 million, or 12.4% from March 31, 2016. Non-maturity deposits (personal and business checking, money market, and savings accounts) grew by $37.2 million, or 6.1%, to $651.3 million at March 31, 2017, from $614.1 million at December 31, 2016. Certificates of deposit (CDs) increased to $268.6 million at March 31, 2017, from $256.6 million at December 31, 2016. CDs represented 29.2% and 29.5% of total deposits at March 31, 2017, and December 31, 2016, respectively.
Stockholders' equity increased by $2.1 million to $89.3 million at March 31, 2017, from $87.2 million at December 31, 2016. This increase reflects the $1.9 million of net income earned for the 2017 first quarter and a $535,000 increase in accumulated other comprehensive income resulting from the mark-to-market adjustment of the available-for-sale securities portfolio, and is net of $332,000 dividends declared.
The tangible equity to assets ratio* was 8.03% at March 31, 2017, compared to 8.21% at December 31, 2016. The tangible book value per common share* increased to $8.79 at March 31, 2017, from $8.57 at December 31, 2016.
ASSET QUALITY
Solid asset quality metrics in the first quarter of 2017 continue to reflect the Company's disciplined credit culture. Non-performing assets (NPAs) declined to $5.9 million at March 31, 2017, or 0.57% of total assets, from $6.3 million, or 0.63% of total assets, at December 31, 2016. NPAs at March 31, 2017 included $3.1 million of OREO, which declined by $115,000, from $3.2 million at December 31, 2016. Nonaccrual loans and leases were $2.8 million at March 31, 2017, or 0.38% of loans and leases HFI, compared to $3.1 million, or 0.44%, at December 31, 2016.
The provision for credit losses in the 2017 first quarter was $265,000 versus $225,000 for the 2016 first quarter. The allowance for loan losses represented 1.23% of loans and leases HFI at March 31, 2017, compared to 1.24% at December 31, 2016.
REGULATORY CAPITAL STRENGTH
As of March 31, 2017, reported regulatory capital ratios at the Bank were 12.79% for total risk-based capital, 11.59% for tier 1 risk-based capital and common equity tier 1 risk-based capital and 8.89% for tier 1 leverage, compared to 13.01% for total risk-based capital, 11.80% for tier 1 risk-based capital and common equity tier 1 risk-based capital and 8.89% for tier 1 leverage at December 31, 2016.
CORPORATE AND INVESTOR INFORMATION
The Bank has been serving the citizens of eastern and central North Carolina since 1902 and offers a variety of financial products and services to business and individual customers. The Bank operates through its main office headquartered in Washington, North Carolina, and has 28 full-service branch offices located throughout eastern and central North Carolina. The Bank also provides a full menu of leasing services through its wholly-owned subsidiary, First South Leasing, LLC. In addition, under its First South Wealth Management division, the Bank makes securities brokerage services available through an affiliation with an independent broker/dealer.
Additional investor information for the Company and the Bank may be accessed on our website at www.firstsouthnc.com.
The Company's common stock symbol as traded on the NASDAQ Global Select Market is "FSBK".
FORWARD-LOOKING STATEMENTS
Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
*NON-GAAP FINANCIAL MEASURES
Important disclosures about and reconciliations of non-GAAP measures to the corresponding GAAP measures, are provided below and attached to this press release.
This press release and the accompanying Supplemental Financial Data contain financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP) in the United States. Management uses these "non-GAAP" measures in their analysis of the Company's performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures are provided within the accompanying tables to this press release.
(NASDAQ: FSBK)
For more information contact:
Bruce Elder (CEO) (252) 940-4936
Scott McLean (CFO) (252) 940-5016
Website: www.firstsouthnc.com
| First South Bancorp, Inc. and Subsidiary |
||||||||
| Consolidated Statements of Financial Condition |
||||||||
| March 31, |
December 31, |
March 31, |
||||||
| 2017 |
2016 |
2016 |
||||||
| Assets |
(Unaudited) |
(Unaudited) |
||||||
| Cash and due from banks |
$ |
21,650,045 |
$ |
22,854,712 |
$ |
17,729,075 |
||
| Interest-bearing deposits with banks |
49,062,514 |
23,320,968 |
18,385,994 |
|||||
| Investment securities available for sale, at fair value |
194,538,513 |
192,606,119 |
213,011,148 |
|||||
| Investment securities held to maturity |
509,912 |
509,617 |
508,746 |
|||||
| Mortgage loans held for sale |
2,506,883 |
5,098,518 |
2,489,873 |
|||||
| Loans and leases held for investment |
727,142,668 |
700,642,291 |
639,044,574 |
|||||
| Allowance for loan and lease losses |
(8,940,879) |
(8,673,172) |
(8,135,054) |
|||||
| Net loans and leases held for investment |
718,201,789 |
691,969,119 |
630,909,520 |
|||||
| Premises and equipment, net |
11,572,036 |
11,291,596 |
12,143,734 |
|||||
| Assets held for sale |
192,720 |
192,720 |
1,083,320 |
|||||
| Other real estate owned |
3,114,760 |
3,229,423 |
5,956,092 |
|||||
| Federal Home Loan Bank stock, at cost |
1,528,900 |
1,573,700 |
1,828,700 |
|||||
| Accrued interest receivable |
2,973,712 |
3,525,684 |
2,845,975 |
|||||
| Goodwill |
4,218,576 |
4,218,576 |
4,218,576 |
|||||
| Mortgage servicing rights |
2,140,105 |
2,148,905 |
1,247,005 |
|||||
| Identifiable intangible assets |
1,550,768 |
1,611,187 |
1,824,432 |
|||||
| Bank-owned life insurance |
18,219,320 |
18,080,183 |
17,653,186 |
|||||
| Prepaid expenses and other assets |
7,443,786 |
8,470,887 |
8,272,379 |
|||||
| Total assets |
$ |
1,039,424,339 |
$ |
990,701,914 |
$ |
940,107,755 |
||
| Liabilities and Stockholders' Equity |
||||||||
| Deposits: |
||||||||
| Non-interest bearing demand |
$ |
204,575,610 |
$ |
196,917,165 |
$ |
164,244,311 |
||
| Interest bearing demand |
298,983,678 |
272,098,903 |
244,323,710 |
|||||
| Savings |
147,718,357 |
145,031,981 |
146,254,503 |
|||||
| Large denomination certificates of deposit |
135,765,040 |
122,819,510 |
119,229,985 |
|||||
| Other time |
132,823,471 |
133,732,804 |
144,614,799 |
|||||
| Total deposits |
919,866,156 |
870,600,363 |
818,667,308 |
|||||
| Borrowed money |
15,000,000 |
17,000,000 |
21,500,000 |
|||||
| Junior subordinated debentures |
10,310,000 |
10,310,000 |
10,310,000 |
|||||
| Other liabilities |
4,966,400 |
5,607,832 |
5,451,329 |
|||||
| Total liabilities |
950,142,556 |
903,518,195 |
855,928,637 |
|||||
| Common stock, $.01 par value, 25,000,000 shares authorized; |
||||||||
| 9,500,266; 9,494,935; and 9,493,776 shares outstanding, respectively |
95,003 |
94,949 |
94,938 |
|||||
| Additional paid-in capital |
36,042,028 |
36,018,743 |
35,957,524 |
|||||
| Retained earnings |
51,100,449 |
49,560,595 |
44,914,635 |
|||||
| Accumulated other comprehensive income |
2,044,303 |
1,509,432 |
3,212,021 |
|||||
| Total stockholders' equity |
89,281,783 |
87,183,719 |
84,179,118 |
|||||
| Total liabilities and stockholders' equity |
$ |
1,039,424,339 |
$ |
990,701,914 |
$ |
940,107,755 |
||
| First South Bancorp, Inc. and Subsidiary |
|||||||
| Consolidated Statements of Operations |
|||||||
| Three Months Ended March 31, 2017 and 2016 |
|||||||
| (Unaudited) |
|||||||
| Three Months Ended |
|||||||
| March 31, |
|||||||
| 2017 |
2016 |
||||||
| Interest income: |
|||||||
| Interest and fees on loans |
$ |
8,213,288 |
$ |
7,191,595 |
|||
| Interest on investments and deposits |
1,390,679 |
1,480,252 |
|||||
| Total interest income |
9,603,967 |
8,671,847 |
|||||
| Interest expense: |
|||||||
| Interest on deposits |
753,989 |
669,276 |
|||||
| Interest on borrowings |
61,959 |
73,086 |
|||||
| Interest on junior subordinated notes |
124,250 |
140,039 |
|||||
| Total interest expense |
940,198 |
882,401 |
|||||
| Net interest income |
8,663,769 |
7,789,446 |
|||||
| Provision for credit losses |
265,000 |
225,000 |
|||||
| Net interest income after provision for credit losses |
8,398,769 |
7,564,446 |
|||||
| Non-interest income: |
|||||||
| Deposit fees and service charges |
1,856,220 |
1,907,407 |
|||||
| Loan fees and charges |
86,044 |
56,985 |
|||||
| Mortgage loan servicing fees |
321,838 |
234,001 |
|||||
| Gain on sale and other fees on mortgage loans |
473,562 |
413,861 |
|||||
| Gain (loss) on sale of other real estate, net |
81,651 |
(12,168) |
|||||
| Gain on sale of investment securities |
0 |
283,514 |
|||||
| Other income |
478,787 |
692,285 |
|||||
| Total non-interest income |
3,298,102 |
3,575,885 |
|||||
| Non-interest expense: |
|||||||
| Compensation and fringe benefits |
5,113,553 |
5,039,954 |
|||||
| Federal deposit insurance premiums |
147,374 |
161,609 |
|||||
| Premises and equipment |
1,398,550 |
1,373,809 |
|||||
| Marketing |
63,739 |
187,818 |
|||||
| Data processing |
793,368 |
796,487 |
|||||
| Amortization of intangible assets |
149,197 |
131,527 |
|||||
| Other real estate owned expense |
164,767 |
93,674 |
|||||
| Other |
1,216,002 |
1,321,048 |
|||||
| Total non-interest expense |
9,046,550 |
9,105,926 |
|||||
| Income before income tax expense |
2,650,321 |
2,034,405 |
|||||
| Income tax expense |
778,124 |
573,611 |
|||||
| NET INCOME |
$ |
1,872,197 |
$ |
1,460,794 |
|||
| Per share data: |
|||||||
| Basic earnings per share |
$ |
0.20 |
$ |
0.15 |
|||
| Diluted earnings per share |
$ |
0.20 |
$ |
0.15 |
|||
| Dividends per share |
$ |
0.035 |
$ |
0.025 |
|||
| Average basic shares outstanding |
9,497,601 |
9,491,201 |
|||||
| Average diluted shares outstanding |
9,541,548 |
9,514,797 |
|||||
| First South Bancorp, Inc. |
Supplemental Financial Data (Unaudited) |
|||||||||||
| Quarter to Date |
||||||||||||
| 3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
||||||||
| (dollars in thousands except per share data) |
||||||||||||
| Consolidated balance sheet data: |
||||||||||||
| Total assets |
$ |
1,039,424 |
$ |
990,702 |
$ |
985,795 |
$ |
961,479 |
$ |
940,108 |
||
| Loans held for sale: |
$ |
2,507 |
$ |
5,099 |
$ |
7,313 |
$ |
5,252 |
$ |
2,490 |
||
| Loans and leases held for investment (HFI): |
||||||||||||
| Mortgage |
$ |
73,107 |
$ |
74,905 |
$ |
74,710 |
$ |
73,100 |
$ |
73,412 |
||
| Commercial |
558,578 |
535,047 |
518,265 |
510,678 |
482,779 |
|||||||
| Consumer |
73,188 |
69,454 |
69,039 |
66,138 |
64,521 |
|||||||
| Leases |
22,270 |
21,236 |
20,452 |
18,927 |
18,333 |
|||||||
| Total loans and leases HFI |
727,143 |
700,642 |
682,466 |
668,843 |
639,045 |
|||||||
| Allowance for loan and lease losses |
(8,941) |
(8,673) |
(8,498) |
(8,338) |
(8,135) |
|||||||
| Net loans and leases HFI |
$ |
718,202 |
$ |
691,969 |
$ |
673,968 |
$ |
660,505 |
$ |
630,910 |
||
| Cash & interest bearing deposits |
$ |
70,713 |
$ |
46,176 |
$ |
57,209 |
$ |
40,734 |
$ |
36,115 |
||
| Investment securities |
195,048 |
193,116 |
193,765 |
200,364 |
213,520 |
|||||||
| Bank-owned life insurance |
18,219 |
18,080 |
17,937 |
17,795 |
17,653 |
|||||||
| Premises and equipment |
11,572 |
11,292 |
11,609 |
11,671 |
12,144 |
|||||||
| Goodwill |
4,219 |
4,219 |
4,219 |
4,219 |
4,219 |
|||||||
| Mortgage servicing rights |
2,140 |
2,149 |
2,091 |
1,273 |
1,247 |
|||||||
| Identifiable intangible assets |
1,551 |
1,611 |
1,682 |
1,753 |
1,824 |
|||||||
| Deposits: |
||||||||||||
| Non-interest checking |
$ |
204,576 |
$ |
196,917 |
$ |
189,873 |
$ |
177,281 |
$ |
164,244 |
||
| Interest checking |
212,386 |
189,401 |
176,034 |
170,153 |
171,323 |
|||||||
| Money market |
86,598 |
82,698 |
88,081 |
72,054 |
73,000 |
|||||||
| Savings |
147,718 |
145,032 |
141,701 |
142,151 |
146,255 |
|||||||
| Certificates |
268,588 |
256,552 |
264,142 |
263,823 |
263,845 |
|||||||
| Total deposits |
$ |
919,866 |
$ |
870,600 |
$ |
859,831 |
$ |
825,462 |
$ |
818,667 |
||
| Borrowings |
$ |
15,000 |
$ |
17,000 |
$ |
20,000 |
$ |
32,500 |
$ |
21,500 |
||
| Junior subordinated debentures |
10,310 |
10,310 |
10,310 |
10,310 |
10,310 |
|||||||
| Stockholders' equity |
89,282 |
87,184 |
88,294 |
87,327 |
84,179 |
|||||||
| Consolidated earnings summary: |
||||||||||||
| Interest income |
$ |
9,604 |
$ |
9,336 |
$ |
9,210 |
$ |
8,998 |
$ |
8,672 |
||
| Interest expense |
940 |
920 |
911 |
898 |
882 |
|||||||
| Net interest income |
8,664 |
8,416 |
8,299 |
8,100 |
7,790 |
|||||||
| Provision for credit losses |
265 |
200 |
220 |
325 |
225 |
|||||||
| Noninterest income |
3,298 |
3,372 |
3,691 |
3,548 |
3,576 |
|||||||
| Noninterest expense |
9,047 |
8,819 |
8,929 |
9,046 |
9,106 |
|||||||
| Income before taxes |
2,650 |
2,769 |
2,841 |
2,277 |
2,035 |
|||||||
| Income tax expense |
778 |
775 |
947 |
665 |
574 |
|||||||
| Net income |
$ |
1,872 |
$ |
1,994 |
$ |
1,894 |
$ |
1,612 |
$ |
1,461 |
||
| Per Share Data: |
||||||||||||
| Basic earnings per share |
$ |
0.20 |
$ |
0.21 |
$ |
0.20 |
$ |
0.17 |
$ |
0.15 |
||
| Diluted earnings per share |
$ |
0.20 |
$ |
0.21 |
$ |
0.20 |
$ |
0.17 |
$ |
0.15 |
||
| Dividends per share |
$ |
0.035 |
$ |
0.03 |
$ |
0.03 |
$ |
0.03 |
$ |
0.025 |
||
| Book value per share |
$ |
9.40 |
$ |
9.18 |
$ |
9.30 |
$ |
9.20 |
$ |
8.87 |
||
| Shares outstanding |
9,500,266 |
9,494,935 |
9,494,935 |
9,493,776 |
9,493,776 |
|||||||
| Average basic shares |
9,497,601 |
9,494,935 |
9,494,861 |
9,493,776 |
9,491,201 |
|||||||
| Average diluted shares |
9,541,548 |
9,529,753 |
9,525,302 |
9,519,565 |
9,514,797 |
|||||||
| Performance ratios (tax equivalent): |
||||||||||||
| Yield on average earning assets |
4.15% |
4.07% |
4.13% |
4.17% |
4.07% |
|||||||
| Cost of interest bearing liabilities |
0.52% |
0.52% |
0.52% |
0.52% |
0.52% |
|||||||
| Net interest spread |
3.62% |
3.55% |
3.61% |
3.64% |
3.55% |
|||||||
| Net interest margin |
3.74% |
3.68% |
3.73% |
3.76% |
3.66% |
|||||||
| Average earning assets to total average assets |
93.32% |
92.92% |
92.42% |
92.38% |
92.20% |
|||||||
| Return on average assets (annualized) |
0.75% |
0.80% |
0.78% |
0.68% |
0.63% |
|||||||
| Return on average equity (annualized) |
8.52% |
8.94% |
8.52% |
7.55% |
6.97% |
|||||||
| Efficiency ratio |
74.92% |
74.16% |
73.84% |
77.59% |
80.74% |
|||||||
| Average assets |
$ |
1,014,310 |
$ |
992,192 |
$ |
968,729 |
$ |
947,761 |
$ |
938,702 |
||
| Average earning assets |
$ |
946,578 |
$ |
921,984 |
$ |
895,290 |
$ |
875,529 |
$ |
865,463 |
||
| Average equity |
$ |
89,143 |
$ |
88,694 |
$ |
88,481 |
$ |
85,927 |
$ |
84,265 |
||
| Equity/Assets |
8.59% |
8.80% |
8.96% |
9.08% |
8.95% |
|||||||
| First South Bancorp, Inc. |
Supplemental Financial Data (Unaudited) |
|||||||||||
| Quarter to Date |
||||||||||||
| 3/31/2017 |
12/31/2016 |
9/30/2016 |
6/30/2016 |
3/31/2016 |
||||||||
| (dollars in thousands except per share data) |
||||||||||||
| Asset quality data and ratios: |
||||||||||||
| Nonaccrual loans and leases: |
||||||||||||
| Non-TDR nonaccrual loans and leases |
||||||||||||
| Earning |
$ |
576 |
$ |
410 |
$ |
569 |
$ |
555 |
$ |
945 |
||
| Non-Earning |
1,479 |
1,257 |
1,289 |
1,075 |
895 |
|||||||
| Total Non-TDR nonaccrual loans and leases |
$ |
2,055 |
$ |
1,667 |
$ |
1,858 |
$ |
1,630 |
$ |
1,840 |
||
| TDR nonaccrual loans and leases |
||||||||||||
| Current TDRs |
$ |
720 |
$ |
422 |
$ |
792 |
$ |
706 |
$ |
847 |
||
| Past Due TDRs |
0 |
962 |
248 |
250 |
154 |
|||||||
| Total TDR nonaccrual loans and leases |
$ |
720 |
$ |
1,384 |
$ |
1,040 |
$ |
956 |
$ |
1,001 |
||
| Total nonaccrual loans and leases |
$ |
2,775 |
$ |
3,051 |
$ |
2,898 |
$ |
2,586 |
$ |
2,841 |
||
| Loans and leases >90 days past due, still accruing |
0 |
0 |
0 |
218 |
153 |
|||||||
| Other real estate owned |
3,115 |
3,229 |
4,810 |
5,541 |
5,956 |
|||||||
| Total nonperforming assets |
$ |
5,890 |
$ |
6,280 |
$ |
7,708 |
$ |
8,345 |
$ |
8,950 |
||
| Allowance for loan and lease losses to |
||||||||||||
| loans and leases HFI |
1.23% |
1.24% |
1.25% |
1.25% |
1.27% |
|||||||
| Net charge-offs (recoveries) |
$ |
(3) |
$ |
25 |
$ |
60 |
$ |
122 |
$ |
(44) |
||
| Net charge-offs (recoveries) to total loans and leases |
0.00% |
0.00% |
0.01% |
0.02% |
-0.01% |
|||||||
| Total nonaccrual loans and leases to total loans |
||||||||||||
| and leases HFI |
0.38% |
0.44% |
0.42% |
0.39% |
0.44% |
|||||||
| Total nonperforming assets to total assets |
0.57% |
0.63% |
0.78% |
0.87% |
0.95% |
|||||||
| Total loans and leases to total deposits |
79.32% |
81.06% |
80.22% |
81.66% |
78.36% |
|||||||
| Total loans and leases to total assets |
70.20% |
71.24% |
69.97% |
70.11% |
68.24% |
|||||||
| Loans serviced for others |
$ |
368,617 |
$ |
371,956 |
$ |
370,606 |
$ |
292,222 |
$ |
293,548 |
||
| Reconciliation of Non-GAAP Measures: |
||||||||||||
| Pre-tax pre-provision operating earnings (non-GAAP): |
||||||||||||
| Income before taxes (GAAP) |
$ |
2,650 |
$ |
2,769 |
$ |
2,841 |
$ |
2,277 |
$ |
2,035 |
||
| Provision for credit losses |
265 |
200 |
220 |
325 |
225 |
|||||||
| Pre-tax pre-provision net income |
2,915 |
2,969 |
3,061 |
2,602 |
2,260 |
|||||||
| Securities (gains) losses, net |
0 |
0 |
0 |
(184) |
(284) |
|||||||
| OREO valuations |
119 |
140 |
0 |
103 |
7 |
|||||||
| OREO (gains) losses, (net) |
(82) |
(80) |
(77) |
14 |
12 |
|||||||
| Pre-tax pre-provision operating |
||||||||||||
| earnings (non-GAAP) |
$ |
2,952 |
$ |
3,029 |
$ |
2,984 |
$ |
2,535 |
$ |
1,995 |
||
| Total core non-interest income (non-GAAP): |
||||||||||||
| Non-interest income (GAAP) |
$ |
3,298 |
$ |
3,372 |
$ |
3,691 |
$ |
3,548 |
$ |
3,576 |
||
| Securities (gains) losses, net |
0 |
0 |
0 |
(184) |
(284) |
|||||||
| OREO (gains) losses, (net) |
(82) |
(80) |
(77) |
14 |
12 |
|||||||
| Total core non-interest income (non-GAAP) |
$ |
3,216 |
$ |
3,292 |
$ |
3,614 |
$ |
3,378 |
$ |
3,304 |
||
| Tangible equity (non-GAAP): |
||||||||||||
| Total equity (GAAP) |
$ |
89,282 |
$ |
87,184 |
$ |
88,294 |
$ |
87,327 |
$ |
84,179 |
||
| Intangible assets (a) |
5,770 |
5,830 |
5,901 |
5,972 |
6,043 |
|||||||
| Tangible equity (non-GAAP) |
$ |
83,512 |
$ |
81,354 |
$ |
82,393 |
$ |
81,355 |
$ |
78,136 |
||
| Tangible Equity/Assets (non-GAAP) |
8.03% |
8.21% |
8.36% |
8.46% |
8.31% |
|||||||
| Tangible book value per share (non-GAAP) |
$ |
8.79 |
$ |
8.57 |
$ |
8.68 |
$ |
8.57 |
$ |
8.23 |
||
| Return on average tangible common equity (non-GAAP): |
||||||||||||
| Net income (GAAP) |
$ |
1,872 |
$ |
1,994 |
$ |
1,894 |
$ |
1,612 |
$ |
1,461 |
||
| Amortization of intangibles, net of tax |
43 |
51 |
47 |
50 |
51 |
|||||||
| Tangible net income available to shareholders (non-GAAP) |
$ |
1,915 |
$ |
2,045 |
$ |
1,941 |
$ |
1,662 |
$ |
1,512 |
||
| Average equity |
89,143 |
88,694 |
88,481 |
85,927 |
84,265 |
|||||||
| Average intangible assets (a) |
5,809 |
5,876 |
5,946 |
6,018 |
6,088 |
|||||||
| Average tangible common equity (non-GAAP) |
$ |
83,334 |
$ |
82,818 |
$ |
82,535 |
$ |
79,909 |
$ |
78,177 |
||
| Return on average tangible common equity (non-GAAP) |
9.32% |
9.82% |
9.36% |
8.37% |
7.78% |
|||||||
| (a) Excludes mortgage servicing rights |
||||||||||||
| Average Balances – Yield/Cost Analysis |
Three Months Ended March 31, |
|||||||||||
| 2017 |
2016 |
|||||||||||
| Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||
| Interest earning assets: |
(Dollars in thousands) |
|||||||||||
| Loans receivable |
$ 708,822 |
$ 8,213 |
4.64 |
% |
$ 621,345 |
$ 7,192 |
4.59 |
% |
||||
| Investments and deposits |
237,756 |
1,391 |
2.67 |
(1) |
244,118 |
1,480 |
2.73 |
(1) |
||||
| Total earning assets |
946,578 |
9,604 |
4.15 |
(1) |
865,463 |
8,672 |
4.07 |
(1) |
||||
| Nonearning assets |
67,732 |
73,239 |
||||||||||
| Total assets |
$ 1,014,310 |
$ 938,702 |
||||||||||
| Interest bearing liabilities: |
||||||||||||
| Deposits |
$ 691,992 |
754 |
0.44 |
$ 641,460 |
669 |
0.42 |
||||||
| Borrowings |
22,161 |
62 |
1.12 |
33,313 |
73 |
0.87 |
||||||
| Junior subordinated debentures |
10,310 |
124 |
4.82 |
10,310 |
140 |
5.37 |
||||||
| Total interest bearing liabilities |
724,463 |
940 |
0.52 |
685,083 |
882 |
0.52 |
||||||
| Noninterest bearing demand deposits |
195,183 |
- |
- |
163,269 |
- |
- |
||||||
| Total sources of funds |
919,646 |
940 |
0.41 |
848,352 |
882 |
0.42 |
||||||
| Other liabilities |
5,521 |
6,085 |
||||||||||
| Stockholders' equity |
89,143 |
84,265 |
||||||||||
| Total liabilities and equity |
$ 1,014,310 |
$ 938,702 |
||||||||||
| Net interest income |
$ 8,664 |
$ 7,790 |
||||||||||
| Interest rate spread (1)(2) |
3.62 |
% |
3.55 |
% |
||||||||
| Net interest margin (1)(3) |
3.74 |
% |
3.66 |
% |
||||||||
| Ratio of earning assets to interest bearing liabilities |
130.66 |
% |
126.33 |
% |
||||||||
| (1) Shown as a tax-adjusted yield. |
||||||||||||
| (2) Represents the difference between the average yield on earning assets and the average cost of funds. |
||||||||||||
| (3) Represents net interest income divided by average earning assets. |
||||||||||||
SOURCE First South Bancorp, Inc.
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