M&F Clean-Up, Earnings Continue for Third Consecutive Quarter; Recognizes Gain on Exchange of Preferred Shares.
KOSCIUSKO, Miss., Oct. 20 /PRNewswire-FirstCall/ -- First M&F Corp. (Nasdaq: FMFC) reported today a net profit for the quarter ended September 30, 2010 of $1.245 million. Net income for the quarter allocated to common shareholders was $13.565 million including a gain on the exchange of preferred stock of $12.867 million, or $1.49 basic and diluted earnings per share. Common net income excluding the gain on exchange was $.801 million, or $.08 basic and diluted earnings per share, compared to the second quarter of 2010 earnings of $.826 million, or $.09 basic and diluted earnings per share and a loss of $.580 million, or $(.06) basic and diluted earnings per share for the third quarter of 2009.
Hugh Potts, Jr., Chairman and CEO commented, "Trends and actual performance of the Company continue to improve. There is substance and progress year-to-date, in the third quarter and certainly year over year. The tepid economy makes a more accelerated recovery of our performance very challenging. However, the improvement in pre-tax, pre-provision core earnings, stable and overall declining nonperforming assets and credit-related expense reductions all give evidence of performance improvement."
The Company recently announced its certification as a Community Development Financial Institution. Mr. Potts commented, "Our certification as a Community Development Financial Institution late in the quarter should accelerate our performance and enable us to better serve our markets, communities and shareholders. The certification allowed us to exchange our 5% TARP preferred for 2% TARP preferred, significantly lowering the capital cost." The extinguishment of the Company's original TARP preferred also resulted in a fair value gain, the effect of which is to reduce preferred stock carrying value and increase common earnings and retained earnings.
Net Interest Income
Reported net interest income was flat compared to the third quarter of 2009, with the net interest margin increasing to 3.60% on a tax equivalent basis in the third quarter of 2010 as compared to 3.40% in the third quarter of 2009. The significant contributors to the increase in net interest margin year over year was the improvement in spreads, primarily due to lower cost of funds followed by a trend downward in new nonaccrual loans. The net interest margin for the second quarter of 2010 was 3.40% as compared to 3.16% for the first quarter of 2010 and 3.28% for the fourth quarter of 2009. Loan yields fell to 5.90% in the third quarter of 2010 from 6.07% in the third quarter of 2009. Loan yields decreased from the second quarter of 2010 to the third quarter as well as the Company strove to increase loan volumes in the face of tepid demand. Average loans were $1.052 billion for the third quarter of 2010 as compared to $1.045 billion for the second quarter of 2010 and $1.107 billion during the third quarter of 2009. Loans increased by $8.9 million in the third quarter of 2010 and fell by $4.3 million in the second quarter.
Deposit costs decreased in the third quarter of 2010 from the second quarter of 2010 and from the third quarter of 2009, in response to the continuing low rate environment. Deposit costs were 1.60% in the third quarter of 2010 as compared to 2.03% in the third quarter of 2009. Deposits fell by $21.9 million during the third quarter of 2010 consistent with historic summertime runoff and have fallen $34.9 million since the third quarter of 2009. 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 67.7% at September 30, 2010 as compared to 65.6% at September 30, 2009 and 63.64% at December 31, 2009. Loans fell by 4.74% since the third quarter of 2009 while deposits fell by 2.57%.
Non-interest Income
Non-interest income, excluding securities transactions and impairment of investments, for the third quarter of 2010 fell by 7.69% compared to the third quarter of 2009, with deposit-related income down 6.24%. Insurance agency commissions were up by 1.37%.
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 was up 27.1% in the third quarter of 2010 compared to the third quarter of 2009, while overdraft fee income decreased by 15.97%.
Non-interest Expenses
Non-interest expenses were down by 7.28% in the third quarter of 2010 as compared to the third quarter of 2009 largely due to lower foreclosed property expenses and cost-savings initiatives put in place in late 2009 and early 2010, including the closure of seven branch locations. As part of the expense initiatives, salaries and benefits expenses fell by 3.56% versus the year ago quarter.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the third quarter of 2010 were 0.19% as compared to 1.24% for the same period in 2009. Net charge-offs totaled $.504 million for the quarter versus $3.433 million a year ago and $5.194 million in the second quarter of 2010. Non-accrual and 90-day past due loans as a percent of total loans were 3.61% at the end of the third quarter of 2010 as compared to 6.81% at the end of the 2009 quarter. The allowance for loan losses as a percentage of loans was 1.92% at September 30, 2010 as compared to 2.97% at September 30, 2009. The provision for loan losses fell to $2.280 million in the third quarter of 2010 from $4.805 million in the third quarter of 2009 as the pace of loan impairments and past dues continue to trend downward. Mr. Potts commented, "In a statistical and macro-economic sense the Great Recession of 2008-2009 may have ended. The wreckage in financial and economic terms is far from over. Recovery has been and will be much longer and more difficult to achieve in this economy. The Company, however, shall not lose focus on asset quality and reduction of non-performing assets."
Balance Sheet
Total assets at September 30, 2010 were $1.547 billion as compared to $1.663 billion at the end of 2009 and $1.676 billion at September 30, 2009. Total loans were $1.047 billion compared to $1.058 billion at the end of 2009 and $1.099 billion at September 30, 2009. Deposits were $1.322 billion compared to $1.388 billion at the end of 2009 and $1.357 billion at September 30, 2009. Total capital was $108.8 million or $10.18 in book value per common share at September 30, 2010.
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 |
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Condensed Consolidated Statements of Condition (Unaudited) |
||||
(In thousands, except share data) |
||||
September 30 |
December 31 |
September 30 |
||
2010 |
2009 |
2009 |
||
Cash and due from banks |
36,232 |
42,446 |
38,809 |
|
Interest bearing bank balances |
32,904 |
84,810 |
57,934 |
|
Federal funds sold |
25,000 |
70,000 |
50,000 |
|
Securities available for sale (cost of |
||||
$265,814, $280,470 and $296,828) |
272,467 |
284,550 |
303,305 |
|
Loans held for sale |
3,893 |
10,266 |
6,726 |
|
Loans |
1,047,013 |
1,058,340 |
1,099,108 |
|
Allowance for loan losses |
20,077 |
24,014 |
32,695 |
|
Net loans |
1,026,936 |
1,034,326 |
1,066,413 |
|
Bank premises and equipment |
41,143 |
42,919 |
43,574 |
|
Accrued interest receivable |
6,617 |
7,598 |
8,280 |
|
Other real estate |
38,631 |
23,578 |
28,114 |
|
Goodwill |
0 |
0 |
16,772 |
|
Other intangible assets |
5,119 |
5,439 |
5,546 |
|
Other assets |
57,693 |
57,036 |
50,996 |
|
Total assets |
1,546,635 |
1,662,968 |
1,676,469 |
|
Non-interest bearing deposits |
220,556 |
228,579 |
196,999 |
|
Interest bearing deposits |
1,101,323 |
1,159,684 |
1,159,818 |
|
Total deposits |
1,321,879 |
1,388,263 |
1,356,817 |
|
Federal funds and repurchase agreements |
25,685 |
8,642 |
12,164 |
|
Other borrowings |
50,141 |
122,510 |
133,751 |
|
Junior subordinated debt |
30,928 |
30,928 |
30,928 |
|
Accrued interest payable |
1,554 |
2,933 |
2,973 |
|
Other liabilities |
7,691 |
5,062 |
6,086 |
|
Total liabilities |
1,437,878 |
1,558,338 |
1,542,719 |
|
Preferred stock, 30,000 shares issued and outstanding |
16,164 |
28,838 |
28,778 |
|
Common stock, 9,097,552, 9,069,346 and 9,069,346 |
||||
shares issued & outstanding |
45,488 |
45,347 |
45,347 |
|
Additional paid-in capital |
31,893 |
31,926 |
31,922 |
|
Nonvested restricted stock awards |
756 |
734 |
765 |
|
Retained earnings |
12,050 |
(2,595) |
25,242 |
|
Accumulated other comprehensive income |
2,406 |
379 |
1,695 |
|
Total First M&F Corp equity |
108,757 |
104,629 |
133,749 |
|
Noncontrolling interests in subsidiaries |
- |
1 |
1 |
|
Total equity |
108,757 |
104,630 |
133,750 |
|
Total liabilities & equity |
1,546,635 |
1,662,968 |
1,676,469 |
|
First M&F Corporation and Subsidiary |
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Condensed Consolidated Statements of Income (Unaudited) |
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(In thousands, except share data) |
|||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||
2010 |
2009 |
2010 |
2009 |
||
Interest and fees on loans |
15,532 |
16,798 |
46,607 |
50,147 |
|
Interest on loans held for sale |
46 |
76 |
170 |
192 |
|
Taxable investments |
1,863 |
2,507 |
5,940 |
7,318 |
|
Tax exempt investments |
374 |
519 |
1,196 |
1,617 |
|
Federal funds sold |
17 |
22 |
67 |
61 |
|
Interest bearing bank balances |
23 |
4 |
109 |
12 |
|
Total interest income |
17,855 |
19,926 |
54,089 |
59,347 |
|
Interest on deposits |
4,471 |
5,758 |
14,632 |
18,249 |
|
Interest on fed funds and repurchase agreements |
15 |
26 |
49 |
83 |
|
Interest on other borrowings |
576 |
1,345 |
2,488 |
4,120 |
|
Interest on subordinated debt |
499 |
499 |
1,487 |
1,488 |
|
Total interest expense |
5,561 |
7,628 |
18,656 |
23,940 |
|
Net interest income |
12,294 |
12,298 |
35,433 |
35,407 |
|
Provision for possible loan losses |
2,280 |
4,805 |
6,940 |
33,840 |
|
Net interest income after loan loss |
10,014 |
7,493 |
28,493 |
1,567 |
|
Service charges on deposits |
2,629 |
2,804 |
7,675 |
8,138 |
|
Mortgage banking income |
330 |
468 |
1,142 |
1,428 |
|
Agency commission income |
1,112 |
1,097 |
2,945 |
3,025 |
|
Fiduciary and brokerage income |
141 |
120 |
406 |
372 |
|
Other income |
567 |
688 |
2,084 |
2,552 |
|
Other-than-temporary impairment on securities, net of |
|||||
$11, $988, $13 and $1,206 recognized in other |
|||||
comprehensive income |
(56) |
(237) |
(422) |
(412) |
|
Gains on AFS securities |
23 |
441 |
1,735 |
442 |
|
Total noninterest income |
4,746 |
5,381 |
15,565 |
15,545 |
|
Salaries and employee benefits |
6,853 |
7,106 |
20,571 |
21,566 |
|
Net occupancy expense |
1,023 |
1,134 |
2,969 |
3,308 |
|
Equipment expenses |
550 |
706 |
1,859 |
2,195 |
|
Software and processing expenses |
408 |
465 |
1,227 |
1,458 |
|
FDIC insurance assessments |
808 |
750 |
2,493 |
2,565 |
|
Foreclosed property expenses |
166 |
508 |
1,041 |
2,790 |
|
Goodwill impairment |
- |
- |
- |
15,800 |
|
Intangible asset amortization and impairment |
107 |
107 |
320 |
1,581 |
|
Other expenses |
3,196 |
3,364 |
9,382 |
9,733 |
|
Total noninterest expense |
13,111 |
14,140 |
39,862 |
60,996 |
|
Net income (loss) before taxes |
1,649 |
(1,266) |
4,196 |
(43,884) |
|
Income tax expense (benefit) |
407 |
(1,137) |
828 |
(11,389) |
|
Net income (loss) |
1,242 |
(129) |
3,368 |
(32,495) |
|
Net income (loss) attributable to noncontrolling interests |
(3) |
7 |
(2) |
(7) |
|
Net income (loss) attributable to First M&F Corp |
1,245 |
(136) |
3,370 |
(32,488) |
|
Earnings Per Common Share Calculations: |
|||||
Net income (loss) attributable to First M&F Corp |
1,245 |
(136) |
3,370 |
(32,488) |
|
Dividends and accretion on preferred stock |
(441) |
(435) |
(1,317) |
(1,028) |
|
Gain on exchange of preferred stock (Note 1) |
12,867 |
- |
12,867 |
- |
|
Net income (loss) applicable to common stock |
13,671 |
(571) |
14,920 |
(33,516) |
|
Earnings (loss) attributable to participating securities |
106 |
9 |
116 |
(349) |
|
Net income (loss) allocated to common shareholders |
13,565 |
(580) |
14,804 |
(33,167) |
|
Weighted average shares (basic) |
9,087,769 |
9,069,346 |
9,075,554 |
9,066,049 |
|
Weighted average shares (diluted) |
9,087,769 |
9,069,346 |
9,075,554 |
9,066,049 |
|
Basic earnings (loss) per share |
$1.49 |
($0.06) |
$1.63 |
($3.66) |
|
Diluted earnings (loss) per share |
$1.49 |
($0.06) |
$1.63 |
($3.66) |
|
First M&F Corporation |
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Financial Highlights |
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YTD Ended |
YTD Ended |
YTD Ended |
YTD Ended |
||
September 30 |
December 31 |
September 30 |
December 31 |
||
2010 |
2009 |
2009 |
2008 |
||
Performance Ratios: |
|||||
Return on assets (annualized) |
0.28% |
-3.63% |
-2.66% |
0.03% |
|
Return on equity (annualized) (a) |
4.23% |
-42.97% |
-30.77% |
0.37% |
|
Return on common equity (annualized) (a) |
3.54% |
-53.73% |
-38.23% |
0.37% |
|
Efficiency ratio |
76.86% |
89.87% |
84.38% |
72.77% |
|
Net interest margin (annualized, tax-equivalent) |
3.38% |
3.29% |
3.30% |
3.67% |
|
Net charge-offs to average loans (annualized) |
1.39% |
4.50% |
3.08% |
0.75% |
|
Nonaccrual loans to total loans |
3.53% |
4.17% |
6.24% |
1.74% |
|
90 day accruing loans to total loans |
0.08% |
0.23% |
0.57% |
0.48% |
|
QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
September 30 |
June 30 |
March 31 |
December 31 |
||
2010 |
2010 |
2010 |
2009 |
||
Per Common Share (diluted): |
|||||
Net income (loss) (including $12,867 gain) |
1.49 |
0.09 |
0.05 |
(3.03) |
|
Net income (loss) (excluding $12,867 gain) |
0.08 |
0.09 |
0.05 |
(3.03) |
|
Cash dividends paid |
0.01 |
0.01 |
0.01 |
0.01 |
|
Book value |
10.18 |
8.68 |
8.37 |
8.36 |
|
Closing stock price |
3.38 |
3.86 |
3.15 |
2.21 |
|
Loan Portfolio Composition: (in thousands) |
|||||
Commercial, financial and agricultural |
130,596 |
130,657 |
123,476 |
120,415 |
|
Non-residential real estate |
626,747 |
615,571 |
626,025 |
643,804 |
|
Residential real estate |
196,299 |
196,547 |
195,862 |
195,361 |
|
Home equity loans |
40,523 |
41,254 |
43,043 |
44,560 |
|
Consumer loans |
45,124 |
44,998 |
44,788 |
44,586 |
|
Other loans |
7,724 |
9,088 |
9,235 |
9,614 |
|
Total loans |
1,047,013 |
1,038,115 |
1,042,429 |
1,058,340 |
|
Deposit Composition: (in thousands) |
|||||
Noninterest-bearing deposits |
220,556 |
227,825 |
217,683 |
228,579 |
|
NOW deposits |
307,533 |
312,828 |
331,066 |
309,545 |
|
MMDA deposits |
162,955 |
145,798 |
141,203 |
161,570 |
|
Savings deposits |
117,175 |
114,426 |
113,367 |
112,764 |
|
Core certificates of deposit under $100,000 |
267,350 |
278,177 |
289,525 |
290,602 |
|
Core certificates of deposit $100,000 and over |
228,543 |
245,182 |
262,335 |
266,131 |
|
Brokered certificates of deposit under $100,000 |
3,005 |
5,322 |
6,033 |
7,284 |
|
Brokered certificates of deposit $100,000 and over |
14,762 |
14,253 |
12,786 |
11,788 |
|
Total deposits |
1,321,879 |
1,343,811 |
1,373,998 |
1,388,263 |
|
Nonperforming Assets: (in thousands) |
|||||
Nonaccrual loans |
37,082 |
35,603 |
42,148 |
44,549 |
|
Other real estate |
38,631 |
31,231 |
31,460 |
23,578 |
|
Investment securities |
596 |
660 |
795 |
825 |
|
Total nonperforming assets |
76,309 |
67,494 |
74,403 |
68,952 |
|
Accruing loans past due 90 days or more |
858 |
1,307 |
2,092 |
2,479 |
|
Restructured loans (accruing) |
18,518 |
15,374 |
6,759 |
4,620 |
|
Total nonaccrual loan to loans |
3.53% |
3.41% |
4.01% |
4.17% |
|
Total nonperforming credit assets to loans and ORE |
6.95% |
6.22% |
6.80% |
6.24% |
|
Total nonperforming assets to assets ratio |
4.93% |
4.30% |
4.58% |
4.15% |
|
Allowance For Loan Loss Activity: (in thousands) |
|||||
Beginning balance |
18,301 |
21,115 |
24,014 |
32,695 |
|
Provision for loan loss |
2,280 |
2,380 |
2,280 |
15,761 |
|
Charge-offs |
(1,485) |
(5,706) |
(5,928) |
(24,556) |
|
Recoveries |
981 |
512 |
749 |
114 |
|
Ending balance |
20,077 |
18,301 |
21,115 |
24,014 |
|
First M&F Corporation |
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Financial Highlights |
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QTD Ended |
QTD Ended |
QTD Ended |
QTD Ended |
||
September 30 |
June 30 |
March 31 |
December 31 |
||
2010 |
2010 |
2010 |
2009 |
||
Condensed Income Statements: (in thousands) |
|||||
Interest income |
17,855 |
18,222 |
18,012 |
19,486 |
|
Interest expense |
5,561 |
6,324 |
6,771 |
7,299 |
|
Net interest income |
12,294 |
11,898 |
11,241 |
12,187 |
|
Provision for loan losses |
2,280 |
2,380 |
2,280 |
15,761 |
|
Noninterest revenues |
4,746 |
5,216 |
5,603 |
4,425 |
|
Noninterest expenses |
13,111 |
13,342 |
13,409 |
34,876 |
|
Net income (loss) before taxes |
1,649 |
1,392 |
1,155 |
(34,025) |
|
Income tax expense (benefit) |
407 |
120 |
301 |
(6,715) |
|
Noncontrolling interest |
(3) |
0 |
1 |
1 |
|
Net income (loss) |
1,245 |
1,272 |
853 |
(27,311) |
|
Preferred dividends |
(441) |
(439) |
(437) |
(436) |
|
Gain on exchange of preferred stock |
12,867 |
- |
- |
- |
|
Net income (loss) applicable to common stock |
13,671 |
833 |
416 |
(27,747) |
|
Earnings (loss) attributable to participating securities |
106 |
7 |
3 |
(259) |
|
Net income (loss) allocated to common shareholders |
13,565 |
826 |
413 |
(27,488) |
|
Tax-equivalent net interest income |
12,563 |
12,180 |
11,554 |
12,537 |
|
Selected Average Balances: (in thousands) |
|||||
Assets |
1,553,415 |
1,598,285 |
1,638,761 |
1,676,504 |
|
Loans held for investment |
1,046,242 |
1,038,148 |
1,056,177 |
1,093,694 |
|
Earning assets |
1,384,289 |
1,438,166 |
1,481,335 |
1,518,371 |
|
Deposits |
1,331,624 |
1,362,362 |
1,379,510 |
1,361,049 |
|
Equity |
108,535 |
105,381 |
105,584 |
133,240 |
|
Common equity |
79,547 |
76,582 |
76,715 |
104,471 |
|
Selected Ratios: |
|||||
Return on average assets (annualized) |
0.32% |
0.32% |
0.21% |
-6.46% |
|
Return on average equity (annualized) (a) |
4.55% |
4.84% |
3.28% |
-81.32% |
|
Return on average common equity (annualized) (a) |
4.01% |
4.37% |
2.20% |
-105.37% |
|
Average equity to average assets |
6.99% |
6.59% |
6.44% |
7.95% |
|
Tangible equity to tangible assets (b) |
6.72% |
6.56% |
6.15% |
5.98% |
|
Tangible common equity to tangible assets (b) |
5.67% |
4.70% |
4.36% |
4.24% |
|
Net interest margin (annualized, tax-equivalent) |
3.60% |
3.40% |
3.16% |
3.28% |
|
Efficiency ratio |
75.75% |
76.69% |
78.16% |
106.73% |
|
Net charge-offs to average loans (annualized) |
0.19% |
2.01% |
1.99% |
8.87% |
|
Nonaccrual loans to total loans |
3.53% |
3.41% |
4.01% |
4.17% |
|
90 day accruing loans to total loans |
0.08% |
0.17% |
0.20% |
0.23% |
|
Price to book (x) |
0.33 |
0.44 |
0.38 |
0.26 |
|
Price to earnings (x) |
10.56 |
10.72 |
15.75 |
N/A |
|
First M&F Corporation |
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Financial Highlights |
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Historical Earnings Trends: |
Earnings |
Earnings |
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Applicable to |
Allocated to |
||||
Common |
Common |
||||
Earnings |
Stock |
Shareholders |
EPS |
||
(in thousands) |
(in thousands) |
(in thousands) |
(diluted) |
||
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) |
|
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 |
|
Revenue Statistics: |
Non-interest |
Non-interest |
|||
Revenues |
Revenues to |
Revenues to |
Contribution |
||
Per FTE |
Ttl. Revenues |
Avg. Assets |
Margin |
||
(thousands) |
(percent) |
(percent) |
(percent) (c) |
||
3Q 2010 |
34.9 |
27.42% |
1.21% |
60.41% |
|
2Q 2010 |
35.1 |
29.98% |
1.31% |
60.37% |
|
1Q 2010 |
34.4 |
32.66% |
1.39% |
60.22% |
|
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% |
|
Expense Statistics: |
Non-interest |
||||
Expense to |
Efficiency |
||||
Avg. Assets |
Ratio |
||||
(percent) |
(percent) (d) |
||||
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% |
|||
1Q 2008 |
3.25% |
70.33% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
QTD September 2010 |
QTD September 2009 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
29,023 |
0.31% |
14,850 |
0.11% |
|
Federal funds sold |
28,522 |
0.24% |
41,032 |
0.22% |
|
Taxable investments (amortized cost) |
235,439 |
3.14% |
260,003 |
3.82% |
|
Tax-exempt investments (amortized cost) |
39,743 |
5.95% |
54,940 |
5.97% |
|
Loans held for sale |
5,320 |
3.43% |
7,235 |
4.13% |
|
Loans held for investment |
1,046,242 |
5.91% |
1,100,109 |
6.08% |
|
Total earning assets |
1,384,289 |
5.19% |
1,478,169 |
5.45% |
|
Non-earning assets |
169,126 |
168,541 |
|||
Total average assets |
1,553,415 |
1,646,710 |
|||
NOW |
312,167 |
1.04% |
280,104 |
1.17% |
|
MMDA |
149,972 |
1.11% |
155,665 |
1.18% |
|
Savings |
115,332 |
1.27% |
112,684 |
1.41% |
|
Certificates of Deposit |
528,929 |
2.15% |
576,388 |
2.80% |
|
Short-term borrowings |
17,583 |
0.33% |
12,556 |
0.82% |
|
Other borrowings |
84,991 |
5.01% |
165,722 |
4.41% |
|
Total interest bearing liabilities |
1,208,974 |
1.82% |
1,303,119 |
2.32% |
|
Non-interest bearing deposits |
225,223 |
190,917 |
|||
Non-interest bearing liabilities |
10,683 |
17,309 |
|||
Preferred equity |
28,988 |
28,669 |
|||
Common equity |
79,547 |
106,696 |
|||
Total average liabilities and equity |
1,553,415 |
1,646,710 |
|||
Net interest spread |
3.37% |
3.13% |
|||
Effect of non-interest bearing deposits |
0.29% |
0.30% |
|||
Effect of leverage |
-0.06% |
-0.03% |
|||
Net interest margin, tax-equivalent |
3.60% |
3.40% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.06% |
0.08% |
|||
Loans |
0.02% |
0.02% |
|||
Reported book net interest margin |
3.52% |
3.30% |
|||
First M&F Corporation |
|||||
Average Balance Sheets/Yields and Costs (tax-equivalent) |
|||||
(In thousands with yields and costs annualized) |
YTD September 2010 |
YTD September 2009 |
|||
Average |
Average |
||||
Balance |
Yield/Cost |
Balance |
Yield/Cost |
||
Interest bearing bank balances |
59,409 |
0.24% |
13,457 |
0.12% |
|
Federal funds sold |
39,228 |
0.23% |
36,589 |
0.23% |
|
Taxable investments (amortized cost) |
238,443 |
3.33% |
233,965 |
4.18% |
|
Tax-exempt investments (amortized cost) |
42,635 |
5.98% |
57,284 |
6.02% |
|
Loans held for sale |
7,707 |
2.95% |
7,746 |
3.31% |
|
Loans held for investment |
1,046,819 |
5.97% |
1,131,950 |
5.94% |
|
Total earning assets |
1,434,241 |
5.12% |
1,480,991 |
5.46% |
|
Non-earning assets |
162,266 |
153,606 |
|||
Total average assets |
1,596,507 |
1,634,597 |
|||
NOW |
321,618 |
1.06% |
274,984 |
1.32% |
|
MMDA |
146,859 |
1.11% |
166,746 |
1.41% |
|
Savings |
113,870 |
1.29% |
113,706 |
1.52% |
|
Certificates of Deposit |
555,037 |
2.35% |
567,377 |
2.94% |
|
Short-term borrowings |
14,029 |
0.46% |
10,587 |
1.05% |
|
Other borrowings |
109,245 |
4.86% |
166,264 |
4.51% |
|
Total interest bearing liabilities |
1,260,658 |
1.98% |
1,299,664 |
2.46% |
|
Non-interest bearing deposits |
220,272 |
185,319 |
|||
Non-interest bearing liabilities |
9,066 |
8,464 |
|||
Preferred equity |
28,929 |
23,919 |
|||
Common equity |
77,582 |
117,231 |
|||
Total average liabilities and equity |
1,596,507 |
1,634,597 |
|||
Net interest spread |
3.14% |
3.00% |
|||
Effect of non-interest bearing deposits |
0.29% |
0.31% |
|||
Effect of leverage |
-0.05% |
-0.01% |
|||
Net interest margin, tax-equivalent |
3.38% |
3.30% |
|||
Less tax equivalent adjustment: |
|||||
Investments |
0.07% |
0.09% |
|||
Loans |
0.01% |
0.01% |
|||
Reported book net interest margin |
3.30% |
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) 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)
(d) 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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