WASHINGTON, N.C., Jan. 22, 2014 /PRNewswire/ -- First South Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), the parent holding company of First South Bank (the "Bank"), reports its unaudited operating results for the quarter and year ended December 31, 2013.
In February 2013, the Company executed a bulk sale of problem loans. The sale resulted in a pre-tax loss of $17.6 million which negatively impacted the financial performance for the three and twelve-month periods ended December 31, 2012. Additionally, the Company recognized a $5.9 million pre-tax valuation adjustment against other real estate owned (OREO) which impacted the aforementioned periods. The aggregate tax adjusted impact of these two transactions resulted in a $14.0 million loss. The transactions reduced on-going expenses related to problem loans and OREO which was a primary driver of earnings improvement for the three and twelve-month periods ended December 31, 2013 discussed below.
Net income for the 2013 fourth quarter increased to $1.1 million, or $0.12 per diluted common share, compared to a net operating loss of $(12.9) million, or $(1.32) per diluted common share for the 2012 fourth quarter. Net income for the year ended 2013 increased to $6.0 million, or $0.62 per diluted common share, compared to a net loss of $(11.0) million, or $(1.13) per diluted common share for the year ended 2012.
Bruce Elder, President and CEO, commented, "During 2013, the Company made significant strides in reducing non-performing assets and committing resources to grow and develop customer relationships. Over the second half of the year, we grew our loan portfolio by approximately $16.9 million and increased non-maturity deposits by $17.9 million. We have introduced new deposit products and electronic delivery channels for both retail and business clients. Strengthening our mobile banking and commercial cash management capabilities, as well as creating a corporate culture designed to consistently add value, will allow First South Bank to focus on new customer acquisition. Looking forward to 2014, we intend to focus our efforts on growing quality earning assets, becoming more operationally efficient and positioning our balance sheet for an impending rising rate environment. Repositioning the balance sheet structure will result in continued pressure on net interest margin, but should prove beneficial in the next economic cycle."
Net Interest Income
Net interest income for the fourth quarter of 2013 was $6.5 million, down from $7.4 million earned for the comparative 2012 fourth quarter. Net interest income for the year ended 2013 was $26.8 million, down from the $29.9 million reported in the comparative year ended 2012. The tax equivalent net interest margin declined by 25 basis points to 4.20% for the 2013 fourth quarter from 4.45% for the comparative 2012 fourth quarter. The tax equivalent net interest margin for the year ended 2013 declined by 9 basis points to 4.34%, from 4.43% for the comparative year ended 2012.
The year-over-year reduction in net interest income and the net interest margin is due primarily to a change in the level and composition of our earning asset base. Total average earning assets for the year ended 2013 were $633.7 million, down $33.4 million compared with total average earning assets of $667.1 million for 2012, due to the bulk sale of problem loans. To improve our asset liability risk profile, the Company executed a number of strategic transactions designed to protect its balance sheet and future earnings stream. One such measure was to sell approximately $32.5 million of low coupon mortgage backed securities due to the sensitivity of their values to rising interest rates. A portion of the proceeds from this sale were redeployed into investment securities that will outperform in a rising interest rate environment, with the residual funds retained in cash to be redeployed into future loan growth or other investments where returns will improve as rates increase. The immediate impact of this strategy was a reduction in our interest income and yield from our investment portfolio. However, our balance sheet is better poised to respond to increases in interest rates and the Company is able to take advantage of future opportunities as they present themselves.
Asset Quality and Provisions for Loan Losses
Asset quality metrics continue to improve. Total nonperforming assets were $15.3 million, or 2.3% of total assets at December 31, 2013, compared to $34.9 million or 4.9% of total assets at December 31, 2012. Total loans in non-accrual status declined to $5.6 million at December 31, 2013, from $21.3 million at December 31, 2012. Our level of OREO declined to $9.4 million at December 31, 2013 compared to $12.9 million at December 31, 2012.
The allowance for loan and lease losses (ALLL) was $7.6 million at December 31, 2013 and represented 1.69% of loans and leases held for investment, compared to $7.9 million at December 31, 2012, or 1.77% of loans and leases held for investment. During the 2013 fourth quarter, there were $782,000 of net charge offs, compared to $25.8 million for the 2012 third quarter. For the year ended 2013, there were $1.3 million of net charge offs compared to $30.6 million for the year ended 2012. The Company recorded $685,000 provision for credit losses in the 2013 fourth quarter compared to $18.7 million recorded in the 2012 fourth quarter. During the year ended 2013, the Company recorded $1.1 million of provision for credit losses compared to $23.3 million recorded in the year ended 2012. Management believes the ALLL remains adequate.
Non-Interest Income
Total non-interest income was $2.3 million for the 2013 fourth quarter, compared to $2.6 million for the 2012 fourth quarter. Fees and service charges on deposits of $1.0 million for the 2013 fourth quarter were relatively unchanged when compared to $1.1 million for the 2012 fourth quarter. We anticipate additional service charge revenue from deposits as we focus on growing our deposit base through the new product offerings and customer acquisition. Fees on loans and loan servicing fees were $524,000 for the 2013 fourth quarter compared to $584,000 for the 2012 fourth quarter.
Net gains from sales of mortgage loans held for sale was $148,000 for the 2013 fourth quarter compared to $973,000 for the 2012 third quarter. Mortgage loan originations during the second half of 2013 slowed as new purchase activity has not fully replaced the reduction in refinance activity. The future levels of gains on sales of mortgage loans and loan servicing fees are dependent on the volume of new mortgage loan originations. Mortgage loan origination in 2014 will be dependent on housing activity in our markets, the level of mortgage loan interest rates and our marketing efforts. Net gains from sales of OREO increased to $206,000 for the 2013 fourth quarter compared to net loss on sale of $396,000 for the 2012 fourth quarter.
For the year ended 2013, total non-interest income was $10.4 million compared to $10.8 million reported in the year ended 2012. Fees and service charges on deposits remained relatively consistent at $4.2 million for the year end 2013 compared to $4.3 million for the year ended 2012. Fees on loans and loan servicing fees increased to $2.6 million for the year ended 2013, from $2.1 million for the year ended 2012.
Net gains recognized from the sale of mortgage loans held for sale and investment securities for the year ended 2013 were $1.3 million and $548,000, respectively, compared to $2.4 million and $1.5 million, respectively, for the year ended 2012. Net gains from the sale of OREO was $609,000 for the year ended 2013 compared to a net loss of $528,000 reported for the year ended 2012. Total core non-interest income, excluding net gains and losses from securities and OREO sales, decreased to $9.3 million for the current year compared to $9.8 million for the prior year primarily due to the decline in mortgage loan originations and sales.
Non-Interest Expense
Total non-interest expense declined significantly to $6.4 million for the 2013 fourth quarter compared to $12.3 million for the 2012 fourth quarter. For the year ended 2013, total non-interest expense also declined significantly to $27.0 million from $35.6 million reported in the year ended 2012. This was primarily attributable to a significant reduction in OREO valuation and maintenance expenses, as well as lower compensation and employee benefits expenses.
Compensation and benefit expenses, the largest component of non-interest expenses, declined to $3.6 million for the 2013 fourth quarter from to $3.8 million for the comparative 2012 fourth quarter. For the year ended 2013, compensation expense declined to $15.1 million from $16.7 million reported in the year ended 2012. The Bank will continue to manage staffing levels to ensure we meet the ongoing needs of our customers and to support our future growth.
Data processing costs increased to $563,000 and $2.3 million for the three and twelve-month periods end December 31, 2013, respectively, from $320,000 and $1.9 million for the respective prior year periods, reflecting the expiration of favorable initial pricing received from a core data processing system conversion completed in March 2012.
Expenses attributable to valuation adjustments, ongoing maintenance, and property taxes for OREO properties declined to $162,000 for the 2013 fourth quarter from $5.9 million for the comparative 2012 fourth quarter. For the year ended 2013, total OREO related expense declined to $1.2 million, from $8.8 million reported in the comparative year ended 2012.
FDIC insurance premiums declined by 38.0% and 13.9%, respectively, for the 2013 fourth quarter and year ended to $150,000 and $850,000, from $242,000 and $987,000 for the respective 2012 fourth quarter and year ended, reflecting a reduction in the deposit insurance assessment calculation base.
Premises and equipment, advertising, amortization of intangibles and other expense in aggregate was relatively consistent during the respective reporting periods.
Balance Sheet
Total assets were $674.7 million at December 31, 2013, down from $707.7 million at December 31, 2012. Our total assets were reduced and our asset mix changed as proceeds from the bulk loan transaction and the sale of mortgage loans held for sale were used to pay off maturing FHLB advances, purchase investment securities and manage nonrenewal of higher costing certificates of deposit.
Loans and leases held for investment increased by $10.6 million during the quarter ended December 31, 2013 from $440.3 million at September 30, 2013. This reflects the second consecutive quarterly increase in loans and leases held for investment. As a result of this increase, total loans and leases held for investment were $451.0 million at December 31, 2013 compared to $441.8 million at December 31, 2012.
Investment securities and interest-earning deposits with banks was $163.2 million at December 31, 2013, compared to $168.0 million at December 31, 2012. During 2013, the Bank implemented a strategy to add defensive investments to the portfolio. While these bonds have a lower current yield than our legacy portfolio, they will help insulate earnings in a rising rate environment. In addition, during 2013 the Bank purchased $10.0 million of bank-owned life insurance ("BOLI"). The investment returns from the BOLI will be utilized to recover a portion of the cost of providing benefit plans to our employees.
Total deposits declined to $585.7 million at December 31, 2013 from $600.9 million at December 31, 2012. However, non-maturity deposits increased by $32.3 million to $337.5 million at December 31, 2013, from $305.2 million at December 31, 2012, partially offsetting a $47.5 million decline in certificates of deposits. Certificates of deposit declined to $248.2 million or 42.4% of total deposits at December 31, 2013 from $295.7 million, or 49.2% of total deposits at December 31, 2012.
All of the $16.5 million of short-term FHLB advances outstanding at December 31, 2012 matured and were repaid with proceeds received from loan sales. These short-term borrowings were used to fund the mortgage loans held for sale portfolio at prior year-end.
Stockholders' equity increased to $74.9 million at December 31, 2013, from $74.7 million at December 31, 2012. This increase primarily reflects the $6.0 million of net income earned for the year ended December 30, 2013, net of a $5.1 million adjustment in accumulated other comprehensive income resulting from the mark-to-market of the available-for-sale securities portfolio and the $729,000 used to acquire 97,388 shares of the Company's common stock pursuant to a previously announced repurchase plan.
Effective as of October 31, 2013, the Company retired 1,502,951 shares of its common stock that were being held as Treasury Stock. The retired shares were returned to authorized/unissued shares. The retirement of these treasury shares had no effect on previously reported net income, total assets or stockholders' equity.
The tangible equity to assets ratio increased to 10.47% at December 30, 2013, from 9.95% at December 31, 2012. There were 9,652,883 common shares outstanding at December 31, 2013, compared to 9,751,271 shares outstanding at December 31, 2012, reflecting the net effect of shares purchased through the Company's previously announced stock repurchase program. Tangible book value per common share increased to $7.32 at December 31, 2013, from $7.22 at December 31, 2012.
Key Performance Ratios
Some of our key performance ratios are the return on average assets (ROA), the return on average equity (ROE) and the efficiency ratio. ROA increased to 0.67% for the 2013 fourth quarter from (7.22%) for the comparative 2012 fourth quarter. The Company's ROE increased to 5.95% for the 2013 fourth quarter from (60.76%) for the comparative 2012 third quarter. The efficiency ratio (noninterest expenses as a percentage of net interest income plus noninterest income) improved to 73.56% for the 2013 fourth quarter from 123.81% for the comparative 2012 fourth quarter. The efficiency ratio measures the proportion of net operating revenues that are absorbed by overhead expenses.
ROA increased to 0.87% for the year ended 2013 from (1.50%) for the comparative year ended 2012. ROE increased to 7.84% for the year ended 2013 from (12.87%) for the comparative year ended 2012. The efficiency ratio improved to 72.61% for the year ended 2013 from 87.30% for the comparative year ended 2012.
First South Bank has been serving the citizens of eastern North Carolina since 1902 and offers a variety of financial products and services, including a leasing company. Securities brokerage services are made available through an affiliation with an independent broker/dealer. The Bank operates through its main office headquartered in Washington, North Carolina, and has 26 full service branch offices located throughout central and eastern North Carolina.
First South Bancorp, Inc. may be accessed on its website at www.firstsouthnc.com. The Company's common stock symbol as traded on the NASDAQ Global Select Market is "FSBK".
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 to 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. Certain amounts in the unaudited Consolidated Statements of Operations for the Three Months and Year Ended December 31, 2012, and in prior quarterly and prior year to date Supplemental Financial Data, have been reclassified to conform with the presentation as of and for the periods ended December 31, 2013. The reclassifications had no effect on previously reported net income or stockholders' equity.
(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 | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Assets | (unaudited) | (*) | ||||
Cash and due from banks | $ | 11,816,071 | $ | 9,233,819 | ||
Interest-earning deposits with banks | 12,419,244 | 3,132,570 | ||||
Investment securities available for sale, at fair value | 150,300,079 | 164,838,012 | ||||
Investment securities held to maturity | 506,176 | - | ||||
Loans held for sale: | ||||||
Mortgage loans | 2,992,017 | 20,287,343 | ||||
Other loans | - | 24,438,107 | ||||
Total loans held for sale | 2,992,017 | 44,725,450 | ||||
Loans and leases held for investment | 450,960,277 | 441,847,019 | ||||
Allowance for loan and lease losses | (7,609,467) | (7,860,195) | ||||
Net loans and leases held for investment | 443,350,810 | 433,986,824 | ||||
Premises and equipment, net | 11,759,521 | 12,233,153 | ||||
Other real estate owned | 9,353,835 | 12,892,519 | ||||
Federal Home Loan Bank stock, at cost | 848,800 | 1,859,200 | ||||
Accrued interest receivable | 2,334,944 | 2,408,979 | ||||
Goodwill | 4,218,576 | 4,218,576 | ||||
Mortgage servicing rights | 1,219,623 | 1,261,355 | ||||
Identifiable intangible assets | 7,860 | 39,300 | ||||
Income tax receivable | 2,901,062 | 10,785,272 | ||||
Bank-owned life insurance | 10,227,795 | - | ||||
Prepaid expenses and other assets | 10,465,530 | 6,098,423 | ||||
Total assets | $ | 674,721,943 | $ | 707,713,452 | ||
Liabilities and Stockholders' Equity | ||||||
Deposits: | ||||||
Non-interest bearing demand | $ | 96,445,049 | $ | 92,888,095 | ||
Interest bearing demand | 171,548,658 | 181,774,772 | ||||
Savings | 69,542,654 | 30,570,259 | ||||
Large denomination certificates of deposit | 123,492,907 | 148,838,963 | ||||
Other time | 124,674,588 | 146,828,942 | ||||
Total deposits | 585,703,856 | 600,901,031 | ||||
Borrowed money | - | 16,500,000 | ||||
Junior subordinated debentures | 10,310,000 | 10,310,000 | ||||
Other liabilities | 3,849,944 | 5,349,368 | ||||
Total liabilities | 599,863,800 | 633,060,399 | ||||
Common stock, $.01 par value, 25,000,000 shares authorized; | ||||||
9,653,883 and 11,254,222 shares issued; 9,653,883 and | ||||||
9,751,271 shares outstanding, respectively | 96,539 | 97,513 | ||||
Additional paid-in capital | 35,809,397 | 35,811,804 | ||||
Retained earnings, substantially restricted | 38,849,326 | 65,532,960 | ||||
Treasury stock, at cost | - | (31,967,269) | ||||
Accumulated other comprehensive income | 102,881 | 5,178,045 | ||||
Total stockholders' equity | 74,858,143 | 74,653,053 | ||||
Total liabilities and stockholders' equity | $ | 674,721,943 | $ | 707,713,452 | ||
(*) Derived from audited consolidated financial statements | ||||||
First South Bancorp, Inc. and Subsidiary | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Interest income: | |||||||||||||
Interest and fees on loans | $ | 5,991,109 | $ | 6,826,558 | $ | 24,706,151 | $ | 29,168,282 | |||||
Interest on investments and deposits | 1,131,670 | 1,385,184 | 4,965,975 | 5,425,737 | |||||||||
Total interest income | 7,122,779 | 8,211,742 | 29,672,126 | 34,594,019 | |||||||||
Interest expense: | |||||||||||||
Interest on deposits | 591,220 | 752,645 | 2,499,693 | 4,325,497 | |||||||||
Interest on borrowings | - | 6,502 | 7,058 | 10,997 | |||||||||
Interest on junior subordinated notes | 80,841 | 88,773 | 339,572 | 363,754 | |||||||||
Total interest expense | 672,061 | 847,920 | 2,846,323 | 4,700,248 | |||||||||
Net interest income | 6,450,718 | 7,363,822 | 26,825,803 | 29,893,771 | |||||||||
Provision for credit losses | 685,000 | 18,674,682 | 1,085,000 | 23,251,647 | |||||||||
Net interest income (loss) after provision for credit losses | 5,765,718 | (11,310,860) | 25,740,803 | 6,642,124 | |||||||||
Non-interest income: | |||||||||||||
Deposit fees and service charges | 1,046,131 | 1,095,551 | 4,204,821 | 4,253,196 | |||||||||
Loan fees and charges | 317,586 | 358,856 | 1,757,610 | 1,257,110 | |||||||||
Loan servicing fees | 206,034 | 225,091 | 834,027 | 832,443 | |||||||||
Gain (loss) on sale of other real estate, net | 206,107 | (396,324) | 609,173 | (528,521) | |||||||||
Gain on sale of mortgage loans | 148,431 | 973,257 | 1,338,119 | 2,400,614 | |||||||||
Gain on sale of investment securities | - | - | 548,074 | 1,546,883 | |||||||||
Other income | 382,216 | 316,683 | 1,115,970 | 1,054,860 | |||||||||
Total non-interest income | 2,306,505 | 2,573,114 | 10,407,794 | 10,816,585 | |||||||||
Non-interest expense: | |||||||||||||
Compensation and fringe benefits | 3,584,537 | 3,750,949 | 15,114,629 | 16,678,542 | |||||||||
Federal deposit insurance premiums | 149,854 | 241,592 | 849,974 | 987,139 | |||||||||
Premises and equipment | 745,844 | 708,787 | 2,990,333 | 2,800,386 | |||||||||
Advertising | 123,128 | 54,742 | 289,419 | 211,524 | |||||||||
Data processing | 562,830 | 320,236 | 2,317,765 | 1,878,517 | |||||||||
Amortization of intangible assets | 120,831 | 115,688 | 478,404 | 456,575 | |||||||||
Other real estate owned expense | 161,746 | 5,882,371 | 1,166,457 | 8,783,427 | |||||||||
Other | 992,981 | 1,236,276 | 3,829,546 | 3,777,019 | |||||||||
Total non-interest expense | 6,441,751 | 12,310,641 | 27,036,527 | 35,573,129 | |||||||||
Income (loss) before income tax expense | 1,630,472 | (21,048,387) | 9,112,070 | (18,114,420) | |||||||||
Income tax expense (benefit) | 486,273 | (8,162,654) | 3,099,975 | (7,137,299) | |||||||||
NET INCOME (LOSS) | $ | 1,144,199 | $ | (12,885,733) | $ | 6,012,095 | $ | (10,977,121) | |||||
Per share data: | |||||||||||||
Basic earnings (loss) per share | $ | 0.12 | $ | (1.32) | $ | 0.62 | $ | (1.13) | |||||
Diluted earnings (loss) per share | $ | 0.12 | $ | (1.32) | $ | 0.62 | $ | (1.13) | |||||
Average basic shares outstanding | 9,727,175 | 9,751,271 | 9,745,154 | 9,751,271 | |||||||||
Average diluted shares outstanding | 9,737,495 | 9,751,271 | 9,751,737 | 9,751,271 | |||||||||
First South Bancorp, Inc. | Supplemental Financial Data (Unaudited) | ||||||||||||||||
Quarter to Date | Year to Date | ||||||||||||||||
12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 12/31/2013 | 12/31/2012 | |||||||||||
(dollars in thousands except per share data) | |||||||||||||||||
Consolidated balance sheet data: | |||||||||||||||||
Total assets | $ | 674,722 | $ | 682,015 | $ | 680,082 | $ | 690,958 | $ | 707,713 | $ | 674,722 | $ | 707,713 | |||
Loans held for sale: | $ | 2,992 | $ | 9,183 | $ | 13,746 | $ | 3,292 | $ | 44,725 | $ | 2,992 | $ | 44,725 | |||
Loans held for investment: | |||||||||||||||||
Mortgage | $ | 69,006 | $ | 68,125 | $ | 76,751 | $ | 74,162 | $ | 75,544 | $ | 69,006 | $ | 75,544 | |||
Commercial | 305,160 | 296,218 | 283,936 | 288,715 | 292,146 | 305,160 | 292,146 | ||||||||||
Consumer | 68,615 | 68,537 | 66,637 | 67,723 | 68,444 | 68,615 | 68,444 | ||||||||||
Leases | 8,179 | 7,467 | 6,722 | 5,924 | 5,713 | 8,179 | 5,713 | ||||||||||
Total loans held for investment | 450,960 | 440,347 | 434,046 | 436,524 | 441,847 | 450,960 | 441,847 | ||||||||||
Allowance for loan and lease losses | (7,609) | (7,707) | (8,604) | (8,567) | (7,860) | (7,609) | (7,860) | ||||||||||
Net loans held for investment | $ | 443,351 | $ | 432,640 | $ | 425,442 | $ | 427,957 | $ | 433,987 | $ | 443,351 | $ | 433,987 | |||
Cash & interest bearing deposits | $ | 24,235 | $ | 37,617 | $ | 23,148 | $ | 35,384 | $ | 12,366 | $ | 24,235 | $ | 12,366 | |||
Investment securities | 150,806 | 149,337 | 162,336 | 176,320 | 164,838 | 150,806 | 164,838 | ||||||||||
Premises and equipment | 11,760 | 11,759 | 11,879 | 12,003 | 12,233 | 11,760 | 12,233 | ||||||||||
Goodwill | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | ||||||||||
Mortgage servicing rights | 1,220 | 1,268 | 1,271 | 1,357 | 1,261 | 1,220 | 1,261 | ||||||||||
Deposits: | |||||||||||||||||
Savings | $ | 69,543 | $ | 60,576 | $ | 49,173 | $ | 37,871 | $ | 30,570 | $ | 69,543 | $ | 30,570 | |||
Checking | 267,994 | 272,482 | 270,506 | 278,899 | 274,663 | 267,994 | 274,663 | ||||||||||
Certificates | 248,167 | 258,573 | 270,149 | 282,846 | 295,668 | 248,167 | 295,668 | ||||||||||
Total deposits | $ | 585,704 | $ | 591,631 | $ | 589,828 | $ | 599,616 | $ | 600,901 | $ | 585,704 | $ | 600,901 | |||
Borrowings | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 16,500 | $ | 0 | $ | 16,500 | |||
Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||
Stockholders' equity | 74,858 | 75,028 | 73,888 | 75,468 | 74,653 | 74,858 | 74,653 | ||||||||||
Consolidated earnings summary: | |||||||||||||||||
Interest income | $ | 7,123 | $ | 7,220 | $ | 7,435 | $ | 7,894 | $ | 8,212 | $ | 29,672 | $ | 34,594 | |||
Interest expense | 672 | 694 | 716 | 764 | 848 | 2,846 | 4,700 | ||||||||||
Net interest income | 6,451 | 6,526 | 6,719 | 7,130 | 7,364 | 26,826 | 29,894 | ||||||||||
Provision for credit losses | 685 | 0 | 0 | 400 | 18,675 | 1,085 | 23,252 | ||||||||||
Noninterest income | 2,306 | 2,706 | 2,920 | 2,476 | 2,573 | 10,408 | 10,817 | ||||||||||
Noninterest expense | 6,442 | 6,928 | 6,910 | 6,757 | 12,311 | 27,037 | 35,573 | ||||||||||
Income tax expense | 486 | 767 | 964 | 883 | (8,163) | 3,100 | (7,137) | ||||||||||
Net income | $ | 1,144 | $ | 1,537 | $ | 1,765 | $ | 1,566 | $ | (12,886) | $ | 6,012 | $ | (10,977) | |||
Per Share Data: | |||||||||||||||||
Basic earnings per share | $ | 0.12 | $ | 0.16 | $ | 0.18 | $ | 0.16 | $ | (1.32) | $ | 0.62 | $ | (1.13) | |||
Diluted earnings per share | $ | 0.12 | $ | 0.16 | $ | 0.18 | $ | 0.16 | $ | (1.32) | $ | 0.62 | $ | (1.13) | |||
Book value per share | $ | 7.68 | $ | 7.69 | $ | 7.58 | $ | 7.74 | $ | 7.66 | $ | 7.68 | $ | 7.69 | |||
Average basic shares | 9,727,175 | 9,751,271 | 9,751,271 | 9,751,271 | 9,751,271 | 9,745,154 | 9,751,271 | ||||||||||
Average diluted shares | 9,737,495 | 9,757,881 | 9,757,338 | 9,751,972 | 9,751,271 | 9,751,737 | 9,751,271 | ||||||||||
First South Bancorp, Inc. | Supplemental Financial Data (Unaudited) | ||||||||||||||||
Quarter to Date | Year to Date | ||||||||||||||||
12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 12/31/2013 | 12/31/2012 | |||||||||||
(dollars in thousands except per share data) | |||||||||||||||||
Performance ratios (tax equivalent): | |||||||||||||||||
Yield on average earning assets | 4.63% | 4.69% | 4.80% | 5.05% | 4.96% | 4.79% | 5.12% | ||||||||||
Cost of interest bearing liabilities | 0.53% | 0.54% | 0.56% | 0.59% | 0.64% | 0.56% | 0.86% | ||||||||||
Net interest spread | 4.10% | 4.15% | 4.24% | 4.46% | 4.32% | 4.23% | 4.26% | ||||||||||
Net interest margin | 4.20% | 4.25% | 4.34% | 4.57% | 4.45% | 4.34% | 4.43% | ||||||||||
Avg earning assets to total avg assets | 91.84% | 91.66% | 92.40% | 92.19% | 91.50% | 91.48% | 91.50% | ||||||||||
Return on average assets (annualized) | 0.67% | 0.90% | 1.03% | 0.91% | (7.22%) | 0.87% | (1.5%) | ||||||||||
Return on average equity (annualized) | 5.96% | 8.18% | 9.22% | 8.02% | (60.76%) | 7.84% | (12.87%) | ||||||||||
Efficiency ratio | 73.56% | 75.05% | 71.69% | 70.34% | 123.81% | 72.61% | 87.30% | ||||||||||
Average assets | $ | 681,690 | $ | 680,741 | $ | 688,897 | $ | 701,880 | $ | 714,377 | $ | 688,226 | $ | 732,091 | |||
Average earning assets | $ | 626,050 | $ | 623,953 | $ | 636,511 | $ | 647,061 | $ | 652,106 | $ | 629,560 | $ | 667,079 | |||
Average equity | $ | 76,231 | $ | 74,569 | $ | 76,754 | $ | 79,178 | $ | 84,830 | $ | 76,669 | $ | 85,295 | |||
Equity/Assets | 11.09% | 11.00% | 10.86% | 10.92% | 10.55% | 11.09% | 10.55% | ||||||||||
Tangible Equity/Assets | 10.47% | 10.38% | 10.24% | 10.31% | 9.95% | 10.47% | 9.95% | ||||||||||
Asset quality data and ratios: | |||||||||||||||||
Loans on nonaccrual status: | |||||||||||||||||
Nonaccrual loans | |||||||||||||||||
Earning | $ | 683 | $ | 1,459 | $ | 1,429 | $ | 1,658 | $ | 2,972 | $ | 683 | $ | 2,972 | |||
Non-Earning | 1,331 | 2,649 | 4,130 | 2,629 | 6,686 | 1,331 | 6,686 | ||||||||||
Total Non-Accrual Loans | $ | 2,014 | $ | 4,108 | $ | 5,559 | $ | 4,287 | $ | 9,658 | $ | 2,014 | $ | 9,658 | |||
Nonaccrual restructured loans | |||||||||||||||||
Past Due TDRs | $ | 1,821 | $ | 1,336 | $ | 990 | $ | 221 | $ | 4,231 | $ | 1,821 | $ | 4,231 | |||
Current TDRs | 1,739 | 1,677 | 818 | 832 | 7,451 | 1,739 | 7,451 | ||||||||||
Total TDRs | $ | 3,560 | $ | 3,013 | $ | 1,808 | $ | 1,053 | $ | 11,682 | $ | 3,560 | $ | 11,682 | |||
Total loans on nonaccrual status | $ | 5,574 | $ | 7,121 | $ | 7,367 | $ | 5,340 | $ | 21,340 | $ | 5,574 | $ | 21,340 | |||
Loans >90 days past due, still accruing | 420 | 544 | 762 | 237 | 676 | 420 | 676 | ||||||||||
Other real estate owned | 9,354 | 8,996 | 9,069 | 11,328 | 12,893 | 9,354 | 12,893 | ||||||||||
Total nonperforming assets | $ | 15,348 | $ | 16,661 | $ | 17,198 | $ | 16,905 | $ | 34,909 | $ | 15,348 | $ | 34,909 | |||
Allowance for loan and lease losses | $ | 7,609 | $ | 7,707 | $ | 8,604 | $ | 8,567 | $ | 7,860 | $ | 7,609 | $ | 7,860 | |||
Allowance for loan and lease losses toloans held for investment | 1.69% | 1.75% | 1.98% | 1.96% | 1.77% | 1.69% | 1.77% | ||||||||||
Net charge-offs (recoveries) | $ | 782 | $ | 898 | $ | (37) | $ | (308) | $ | 25,822 | $ | 1,336 | $ | 30,585 | |||
Net charge-offs (recoveries) to total loans | 0.17% | 0.20% | (0.01%) | (0.07%) | 5.31% | 0.29% | 6.29% | ||||||||||
Nonaccrual loans to total loans | 1.23% | 1.58% | 1.65% | 1.21% | 4.39% | 1.23% | 4.39% | ||||||||||
Nonperforming assets to assets | 2.27% | 2.44% | 2.53% | 2.45% | 4.93% | 2.27% | 4.93% | ||||||||||
Total loans to deposits | 77.51% | 75.98% | 75.92% | 73.35% | 80.97% | 77.51% | 80.97% | ||||||||||
Total loans to assets | 67.28% | 65.91% | 65.84% | 63.65% | 68.75% | 67.28% | 68.75% | ||||||||||
Loans serviced for others | $ | 325,441 | $ | 325,833 | $ | 319,124 | $ | 330,280 | $ | 313,823 | $ | 325,441 | $ | 313,823 | |||
SOURCE First South Bancorp, Inc.
