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| 8-K - FIRST M&F CORP/MS | a4q2011earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
January 23, 2012
FOR IMMEDIATE RELEASE
First M&F Corp. Gains Momentum during 2011; Earnings up 9%
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ:FMFC) today reported 2011 net income of $4.373 million as compared to a net income of $4.011 million for 2010, a nine percent increase. Earnings allocated to common shareholders were $2.584 million, or $0.28 basic and diluted earnings per share, compared to earnings of $15.071 million, or $1.66 basic and diluted earnings per share for 2010. Earnings attributable to common shareholders for 2010 includes a $12.867 million gain on exchange of preferred stock recorded in the third quarter of 2010. Excluding the gain on exchange, 2010 common earnings were $2.301 million, or $.25 basic and diluted earnings per share.
Net income for the quarter ended December 31, 2011 was $.530 million allocated to common shareholders, or $.05 basic and diluted earnings per share, compared to $.267 million, or $.03 basic and diluted earnings per share for the fourth quarter of 2010.
For the fourth quarter of 2011 the annualized return on assets was 0.25%, while return on common equity was 2.27%. Comparatively, the return on assets for the fourth quarter of 2010 was 0.16%, with a return on common equity of 1.16%. The return on assets for 2011 was 0.27%, while the return on common equity was 2.81%.
“Our credit trends continue to improve, bolstered by eight quarters of post-recession earnings,” said Hugh S. Potts, Jr., Chairman and Chief Executive Officer. “Our nonaccrual loans to total loans improved in 2011 to 1.68% from 3.11% in 2010. While our net income overall was up nine percent, cash earnings applicable to common stock, excluding the 2010 gain on exchange of preferred stock, were up thirteen percent year over year,” continued Mr. Potts.
Net Interest Income
Net interest income for the quarter was up slightly compared to the fourth quarter of 2010, with the net interest margin increasing to 3.64% in the fourth quarter of 2011 as compared to 3.57% in the fourth quarter of 2010. The significant contributor to the increase in net interest income continues to be the improvement in net interest spreads stemming from lower deposit costs. The net interest margin for the third quarter of 2011 was 3.72% as compared to 3.75% for the second quarter of 2011 and 3.59% for the first quarter of 2011 as the cost of funds trended downward all year. Loan yields decreased to 5.74% in the fourth quarter of 2011 from 5.89% in the fourth quarter of 2010. Loan yields fell slightly from the third quarter of 2011 to the fourth quarter. Average total loans were $1.014 billion for the fourth quarter of 2011 as compared to $1.035 billion for the third quarter of 2011 and $1.048 million during the fourth quarter of 2010. Loans held for investment fell by $18.626 million in the fourth quarter of 2011 and by $29.629 million in the third quarter as loan demand continued to be weak. Deposit costs fell in the fourth quarter of 2011 from the third quarter of 2011 and from the fourth quarter of 2010, as deposits were re-priced downward throughout 2011 in the current stable low-rate environment, continuing a trend beginning in the fourth quarter of 2007. Deposit costs were 1.01% in the fourth quarter of 2011 as compared to 1.49% in the fourth quarter of 2010. Deposits fell by $12.396 million during the fourth quarter of 2011. Management continues to emphasize and focus on core deposit growth by developing and promoting relationship-driven deposit gathering while de-emphasizing non-core deposit funding. Loans held for investment as a percentage of assets were 63.55% at December 31, 2011 as compared to 66.10% at December 31, 2010 and 63.96% at September 30, 2011.
Non-interest Income
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, for the fourth quarter of 2011 was up by 20.96% compared to the fourth quarter of 2010, with deposit-related income up by 3.73% and mortgage income up 40.77% on higher volumes. Other income was bolstered by a net gain on the sale of branch properties closed under Project McKinley, a cost savings and efficiency initiative in the fourth quarter. Insurance agency commissions fell by 7.64% in a soft insurance market.
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, was up 4.11% for 2011 versus 2010. Over half of non-interest income is from deposit sources, which was virtually flat year over year. Deposit revenues continue to be supported by debit card fee income, which increased by 17.86% in 2011 over 2010, and overdraft fee income, which, however, decreased by 5.61% for the year. Commission revenues from traditional insurance products were down 4.54% year over year.
Non-interest income includes non-cash other-than-temporary impairment charges of $.631 million in 2011 on pooled trust preferred securities held in the investment portfolio. These charges reflect credit losses expected due to deferrals and defaults by issuing institutions and cash flow analyses.
Non-interest Expenses
Non-interest expenses were up by 3.07% in the fourth quarter of 2011 as compared to the fourth quarter of 2010. Salaries and benefits for the quarter were up slightly compared to the year-ago quarter due to severance costs related to Project McKinley. Most of the increase in other expenses was due to volume-related mortgage expenses.
Non-interest expenses increased by 7.05% for 2011 as compared to 2010. Most of the increase was due to higher foreclosed property expenses in 2011 as non-performing assets shifted more from non-accrual loans to Other Real Estate. The number of full-time equivalent employees at the end of 2011 was 460 as compared to 496 at the end of the third quarter of 2011 and 499 at the end of 2010.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the fourth quarter of 2011 were 1.37% as compared to 2.41% for the same period in 2010. Non-accrual and 90-day past due loans as a percent of total loans were 1.74% at the end of 2011 as compared to 3.20% at the end of 2010. Annualized net charge-offs as a percentage of average loans for 2011 were 1.05% as compared to 1.65% for 2010. The allowance for loan losses as a percentage of loans was 1.50% at December 31, 2011 as compared to 1.51% at December 31, 2010. The provision for loan losses increased slightly in 2011 from $9.220 million in 2010 to $9.720 million in 2011.
Mr. Potts commented, “Credit metrics improved across the board during 2011 and the fourth quarter as non-performing assets shifted from non-accrual to Other Real Estate. The rate of increase in new credit issues has dropped dramatically as old issues are resolved.”
Balance Sheet
Total assets fell by 2.26% in 2011, to $1.568 billion from $1.604 billion. Total equity grew to $111.041 million, a 3.71% increase from 2010. Total loans held for investment were $.996 billion compared to $1.060 billion at the end of 2010. Deposits were $1.371 billion compared to $1.375 billion at the end of 2010. Book value per common share increased to $10.21 per share at the end of 2011, a 2.51% increase from 2010. “While loan demand has been tepid at best and loan volumes have fallen, newer channels of growth are beginning to gain traction,” said Mr. Potts. Mr. Potts continued, “Present demands are such that an aggressive growth strategy looks more likely in 2013 and 2014, although we do expect some growth this year.”
Growth and Branch Rationalization
In the first quarter of 2010 the Company closed two branches in Shelby County, Tennessee and one branch in Shelby County, Alabama. Under Project McKinley, the Company closed five branches, two in metro-Jackson, MS, one in Oxford MS, one in Tupelo, MS and one in its Shelby County, Alabama market in the fourth quarter of 2011. These closures were designed to improve the Company's efficiencies and cost structure without exiting any markets.
Conclusion
“We are convinced,” stated Mr. Potts, “that we are on the right track. We have addressed organizational structure, overhead, net interest margin, credit concentrations, classified and non-performing assets while still remaining profitable. We expect 2012 to reflect a continuation of these trends while the Company strives to accelerate progress.”
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 Forward‑Looking Statements
This document includes certain "forward‑looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.
First M&F Corporation | ||||||
Condensed Consolidated Statements of Condition (Unaudited) | ||||||
(In thousands, except share data) | ||||||
December 31 | December 31 | |||||
2011 | 2010 | |||||
Cash and due from banks | $ | 39,976 | $ | 45,099 | ||
Interest bearing bank balances | 39,391 | 72,103 | ||||
Federal funds sold | 25,000 | 25,000 | ||||
Securities available for sale (cost of | ||||||
$315,890 and $274,421) | 320,774 | 276,929 | ||||
Loans held for sale | 26,073 | 6,242 | ||||
Loans | 996,340 | 1,060,146 | ||||
Allowance for loan losses | 14,953 | 16,025 | ||||
Net loans | 981,387 | 1,044,121 | ||||
Bank premises and equipment | 37,989 | 40,696 | ||||
Accrued interest receivable | 6,122 | 6,380 | ||||
Other real estate | 36,952 | 31,125 | ||||
Other intangible assets | 4,586 | 5,013 | ||||
Other assets | 49,541 | 51,256 | ||||
Total assets | $ | 1,567,791 | $ | 1,603,964 | ||
Non-interest bearing deposits | $ | 231,718 | $ | 212,199 | ||
Interest bearing deposits | 1,139,745 | 1,163,213 | ||||
Total deposits | 1,371,463 | 1,375,412 | ||||
Federal funds and repurchase agreements | 4,398 | 33,481 | ||||
Other borrowings | 43,001 | 50,416 | ||||
Junior subordinated debt | 30,928 | 30,928 | ||||
Accrued interest payable | 1,023 | 1,470 | ||||
Other liabilities | 5,937 | 5,192 | ||||
Total liabilities | 1,456,750 | 1,496,899 | ||||
Preferred stock, 30,000 shares issued and outstanding | 17,564 | 16,390 | ||||
Common stock, 9,154,936 and 9,106,803 | ||||||
shares issued & outstanding | 45,775 | 45,534 | ||||
Additional paid-in capital | 31,895 | 31,883 | ||||
Nonvested restricted stock awards | 674 | 784 | ||||
Retained earnings | 14,456 | 12,225 | ||||
Accumulated other comprehensive income (Note 1) | 677 | 249 | ||||
Total First M&F Corp equity | 111,041 | 107,065 | ||||
Noncontrolling interests in subsidiaries | — | — | ||||
Total equity | 111,041 | 107,065 | ||||
Total liabilities & equity | $ | 1,567,791 | $ | 1,603,964 | ||
First M&F Corporation and Subsidiary | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Interest and fees on loans | $ | 14,482 | $ | 15,463 | $ | 60,201 | $ | 62,070 | ||||
Interest on loans held for sale | 154 | 62 | 275 | 232 | ||||||||
Taxable investments | 1,297 | 1,676 | 6,745 | 7,616 | ||||||||
Tax exempt investments | 318 | 353 | 1,252 | 1,549 | ||||||||
Federal funds sold | 16 | 15 | 63 | 82 | ||||||||
Interest bearing bank balances | 38 | 34 | 179 | 143 | ||||||||
Total interest income | 16,305 | 17,603 | 68,715 | 71,692 | ||||||||
Interest on deposits | 2,897 | 4,177 | 13,501 | 18,809 | ||||||||
Interest on fed funds and repurchase agreements | 6 | 17 | 36 | 66 | ||||||||
Interest on other borrowings | 467 | 536 | 1,979 | 3,024 | ||||||||
Interest on subordinated debt | 292 | 505 | 1,335 | 1,992 | ||||||||
Total interest expense | 3,662 | 5,235 | 16,851 | 23,891 | ||||||||
Net interest income | 12,643 | 12,368 | 51,864 | 47,801 | ||||||||
Provision for possible loan losses | 2,280 | 2,280 | 9,720 | 9,220 | ||||||||
Net interest income after loan loss | 10,363 | 10,088 | 42,144 | 38,581 | ||||||||
Service charges on deposits | 2,641 | 2,546 | 10,293 | 10,221 | ||||||||
Mortgage banking income | 618 | 439 | 1,821 | 1,581 | ||||||||
Agency commission income | 798 | 864 | 3,636 | 3,809 | ||||||||
Fiduciary and brokerage income | 153 | 120 | 584 | 526 | ||||||||
Other income | 1,133 | 448 | 3,102 | 2,532 | ||||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$49, $0, $263 and $32 recognized in other | ||||||||||||
comprehensive income | (50 | ) | — | (631 | ) | (403 | ) | |||||
Gains on AFS securities | 619 | 539 | 2,769 | 2,255 | ||||||||
Total noninterest income | 5,912 | 4,956 | 21,574 | 20,521 | ||||||||
Salaries and employee benefits | 6,899 | 6,732 | 28,469 | 27,303 | ||||||||
Net occupancy expense | 1,003 | 968 | 3,935 | 3,937 | ||||||||
Equipment expenses | 479 | 523 | 1,871 | 2,382 | ||||||||
Software and processing expenses | 378 | 400 | 1,540 | 1,627 | ||||||||
FDIC insurance assessments | 530 | 768 | 2,426 | 3,261 | ||||||||
Foreclosed property expenses | 2,047 | 1,905 | 7,351 | 2,946 | ||||||||
Intangible asset amortization and impairment | 107 | 106 | 427 | 426 | ||||||||
Other expenses | 3,634 | 3,226 | 12,315 | 12,608 | ||||||||
Total noninterest expense | 15,077 | 14,628 | 58,334 | 54,490 | ||||||||
Net income before taxes | 1,198 | 416 | 5,384 | 4,612 | ||||||||
Income tax expense (benefit) | 211 | (226 | ) | 1,011 | 602 | |||||||
Net income | 987 | 642 | 4,373 | 4,010 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | 1 | — | (1 | ) | |||||||
Net income attributable to First M&F Corp | $ | 987 | $ | 641 | $ | 4,373 | $ | 4,011 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income attributable to First M&F Corp | $ | 987 | $ | 641 | $ | 4,373 | $ | 4,011 | ||||
Dividends and accretion on preferred stock | (454 | ) | (375 | ) | (1,774 | ) | (1,692 | ) | ||||
Gain on exchange of preferred stock (Note 2) | — | — | — | 12,867 | ||||||||
Net income applicable to common stock | 533 | 266 | 2,599 | 15,186 | ||||||||
Earnings (loss) attributable to participating securities | 3 | (1 | ) | 15 | 115 | |||||||
Net income allocated to common shareholders | $ | 530 | $ | 267 | $ | 2,584 | $ | 15,071 | ||||
Weighted average shares (basic) | 9,145,108 | 9,099,883 | 9,126,605 | 9,081,687 | ||||||||
Weighted average shares (diluted) | 9,145,108 | 9,099,883 | 9,126,605 | 9,081,687 | ||||||||
Basic earnings per share | $ | 0.05 | $ | 0.03 | $ | 0.28 | $ | 1.66 | ||||
Diluted earnings per share | $ | 0.05 | $ | 0.03 | $ | 0.28 | $ | 1.66 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | |||||||||||
December 31 | December 31 | |||||||||||
2011 | 2010 | |||||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.27 | % | 0.25 | % | ||||||||
Return on equity (annualized) (a) | 4.00 | % | 3.74 | % | ||||||||
Return on common equity (annualized) (a) | 2.81 | % | 2.87 | % | ||||||||
Efficiency ratio (c) | 78.47 | % | 78.47 | % | ||||||||
Net interest margin (annualized, tax-equivalent) | 3.68 | % | 3.43 | % | ||||||||
Net charge-offs to average loans (annualized) | 1.05 | % | 1.65 | % | ||||||||
Nonaccrual loans to total loans | 1.68 | % | 3.11 | % | ||||||||
90 day accruing loans to total loans | 0.06 | % | 0.09 | % | ||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||
2011 | 2011 | 2011 | 2011 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.05 | $ | 0.10 | $ | 0.07 | $ | 0.06 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.21 | 10.23 | 10.20 | 9.98 | ||||||||
Closing stock price | 2.84 | 3.16 | 3.78 | 4.08 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 155,330 | $ | 143,133 | $ | 152,063 | $ | 137,620 | ||||
Non-residential real estate | 574,505 | 603,904 | 621,546 | 642,372 | ||||||||
Residential real estate | 186,815 | 185,564 | 187,932 | 189,290 | ||||||||
Home equity loans | 37,024 | 38,320 | 38,891 | 38,622 | ||||||||
Consumer loans | 42,666 | 44,045 | 44,163 | 43,357 | ||||||||
Total loans | $ | 996,340 | $ | 1,014,966 | $ | 1,044,595 | $ | 1,051,261 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 231,718 | $ | 222,042 | $ | 243,626 | $ | 208,457 | ||||
NOW deposits | 390,256 | 378,409 | 397,281 | 411,898 | ||||||||
MMDA deposits | 197,849 | 179,138 | 174,127 | 161,959 | ||||||||
Savings deposits | 119,693 | 118,814 | 117,830 | 116,714 | ||||||||
Core certificates of deposit under $100,000 | 225,777 | 250,130 | 255,847 | 261,087 | ||||||||
Core certificates of deposit $100,000 and over | 187,513 | 216,655 | 217,540 | 222,617 | ||||||||
Brokered certificates of deposit under $100,000 | 5,629 | 4,686 | 4,611 | 2,880 | ||||||||
Brokered certificates of deposit $100,000 and over | 13,028 | 13,985 | 13,637 | 14,464 | ||||||||
Total deposits | $ | 1,371,463 | $ | 1,383,859 | $ | 1,424,499 | $ | 1,400,076 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 17,177 | $ | 26,622 | $ | 32,800 | $ | 37,407 | ||||
Other real estate | 36,952 | 32,722 | 30,650 | 29,660 | ||||||||
Investment securities | 599 | 509 | 693 | 639 | ||||||||
Total nonperforming assets | $ | 54,728 | $ | 59,853 | $ | 64,143 | $ | 67,706 | ||||
Accruing loans past due 90 days or more | $ | 602 | $ | 252 | $ | 784 | $ | 338 | ||||
Restructured loans (accruing) | $ | 19,662 | $ | 19,712 | $ | 22,988 | $ | 16,320 | ||||
Total nonaccrual loan to loans | 1.68 | % | 2.59 | % | 3.13 | % | 3.55 | % | ||||
Total nonperforming credit assets to loans and ORE | 5.11 | % | 5.60 | % | 5.89 | % | 6.19 | % | ||||
Total nonperforming assets to assets ratio | 3.49 | % | 3.77 | % | 3.95 | % | 4.21 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 16,111 | $ | 18,805 | $ | 17,043 | $ | 16,025 | ||||
Provision for loan loss | 2,280 | 2,580 | 2,280 | 2,580 | ||||||||
Charge-offs | (4,001 | ) | (5,419 | ) | (1,442 | ) | (2,147 | ) | ||||
Recoveries | 563 | 145 | 924 | 585 | ||||||||
Ending balance | $ | 14,953 | $ | 16,111 | $ | 18,805 | $ | 17,043 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||
2011 | 2011 | 2011 | 2011 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 16,305 | $ | 17,239 | $ | 17,602 | $ | 17,569 | ||||
Interest expense | 3,662 | 4,014 | 4,331 | 4,844 | ||||||||
Net interest income | 12,643 | 13,225 | 13,271 | 12,725 | ||||||||
Provision for loan losses | 2,280 | 2,580 | 2,280 | 2,580 | ||||||||
Noninterest revenues | 5,912 | 5,219 | 4,712 | 5,731 | ||||||||
Noninterest expenses | 15,077 | 14,143 | 14,303 | 14,811 | ||||||||
Net income before taxes | 1,198 | 1,721 | 1,400 | 1,065 | ||||||||
Income tax expense | 211 | 391 | 294 | 115 | ||||||||
Noncontrolling interest | — | — | — | — | ||||||||
Net income | $ | 987 | $ | 1,330 | $ | 1,106 | $ | 950 | ||||
Preferred dividends | (454 | ) | (448 | ) | (440 | ) | (432 | ) | ||||
Gain on exchange of preferred stock | — | — | — | — | ||||||||
Net income applicable to common stock | 533 | 882 | 666 | 518 | ||||||||
Earnings attributable to participating securities | 3 | 4 | 5 | 3 | ||||||||
Net income allocated to common shareholders | $ | 530 | $ | 878 | $ | 661 | $ | 515 | ||||
Tax-equivalent net interest income | $ | 12,865 | $ | 13,449 | $ | 13,495 | $ | 12,955 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,564,531 | $ | 1,592,030 | $ | 1,598,871 | $ | 1,622,363 | ||||
Loans held for investment | 993,869 | 1,028,372 | 1,050,136 | 1,056,903 | ||||||||
Earning assets | 1,401,948 | 1,433,189 | 1,444,677 | 1,463,032 | ||||||||
Deposits | 1,366,628 | 1,390,835 | 1,396,331 | 1,403,733 | ||||||||
Equity | 110,483 | 110,412 | 108,911 | 107,633 | ||||||||
Common equity | 93,077 | 93,307 | 92,096 | 91,102 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.25 | % | 0.33 | % | 0.28 | % | 0.24 | % | ||||
Return on average equity (annualized) (a) | 3.54 | % | 4.78 | % | 4.07 | % | 3.58 | % | ||||
Return on average common equity (annualized) (a) | 2.27 | % | 3.76 | % | 2.90 | % | 2.31 | % | ||||
Average equity to average assets | 7.06 | % | 6.94 | % | 6.81 | % | 6.63 | % | ||||
Tangible equity to tangible assets (b) | 6.81 | % | 6.71 | % | 6.50 | % | 6.41 | % | ||||
Tangible common equity to tangible assets (b) | 5.69 | % | 5.61 | % | 5.46 | % | 5.37 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.64 | % | 3.72 | % | 3.75 | % | 3.59 | % | ||||
Efficiency ratio (c) | 80.29 | % | 75.76 | % | 78.56 | % | 79.26 | % | ||||
Net charge-offs to average loans (annualized) | 1.37 | % | 2.03 | % | 0.20 | % | 0.60 | % | ||||
Nonaccrual loans to total loans | 1.68 | % | 2.59 | % | 3.13 | % | 3.55 | % | ||||
90 day accruing loans to total loans | 0.06 | % | 0.02 | % | 0.07 | % | 0.03 | % | ||||
Price to book | 0.28x | 0.31x | 0.37x | 0.41x | ||||||||
Price to earnings | 14.20x | 7.90x | 13.50x | 17.00x | ||||||||
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) | |||||||||
4Q 2011 | $ | 987 | $ | 533 | $ | 530 | $ | 0.05 | ||||
3Q 2011 | 1,330 | 882 | 878 | 0.10 | ||||||||
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 | ) | ||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Ttl. Revenues | Avg. Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
4Q 2011 | $ | 39.0 | 31.48 | % | 1.50 | % | ||||||
3Q 2011 | 36.6 | 27.96 | % | 1.30 | % | |||||||
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 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Avg. Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
4Q 2011 | 3.82 | % | 80.29 | % | ||||||||
3Q 2011 | 3.52 | % | 75.76 | % | ||||||||
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 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD December 2011 | QTD December 2010 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 44,653 | 0.33 | % | $ | 65,302 | 0.21 | % | ||
Federal funds sold | 25,000 | 0.25 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 283,986 | 1.81 | % | 228,935 | 2.91 | % | ||||
Tax-exempt investments (amortized cost) | 33,923 | 5.94 | % | 37,525 | 5.95 | % | ||||
Loans held for sale | 20,517 | 2.98 | % | 6,551 | 3.75 | % | ||||
Loans held for investment | 993,869 | 5.79 | % | 1,041,453 | 5.91 | % | ||||
Total earning assets | 1,401,948 | 4.68 | % | 1,404,766 | 5.04 | % | ||||
Non-earning assets | 162,583 | 169,660 | ||||||||
Total average assets | $ | 1,564,531 | $ | 1,574,426 | ||||||
NOW | $ | 369,789 | 0.47 | % | $ | 319,309 | 1.02 | % | ||
MMDA | 186,898 | 0.62 | % | 167,154 | 1.14 | % | ||||
Savings | 118,833 | 1.05 | % | 115,806 | 1.26 | % | ||||
Certificates of Deposit | 459,182 | 1.60 | % | 512,012 | 1.95 | % | ||||
Short-term borrowings | 4,809 | 0.53 | % | 34,194 | 0.20 | % | ||||
Other borrowings | 74,431 | 4.04 | % | 80,946 | 5.10 | % | ||||
Total interest bearing liabilities | 1,213,942 | 1.20 | % | 1,229,421 | 1.69 | % | ||||
Non-interest bearing deposits | 231,926 | 227,457 | ||||||||
Non-interest bearing liabilities | 8,180 | 8,438 | ||||||||
Preferred equity | 17,406 | 18,498 | ||||||||
Common equity | 93,077 | 90,612 | ||||||||
Total average liabilities and equity | $ | 1,564,531 | $ | 1,574,426 | ||||||
Net interest spread | 3.48 | % | 3.35 | % | ||||||
Effect of non-interest bearing deposits | 0.19 | % | 0.26 | % | ||||||
Effect of leverage | (0.03 | )% | (0.04 | )% | ||||||
Net interest margin, tax-equivalent | 3.64 | % | 3.57 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.06 | % | ||||||
Loans | 0.01 | % | 0.02 | % | ||||||
Reported book net interest margin | 3.58 | % | 3.49 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD December 2011 | YTD December 2010 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 70,998 | 0.25 | % | $ | 60,894 | 0.23 | % | ||
Federal funds sold | 25,000 | 0.25 | % | 35,642 | 0.23 | % | ||||
Taxable investments (amortized cost) | 265,446 | 2.54 | % | 236,046 | 3.23 | % | ||||
Tax-exempt investments (amortized cost) | 33,390 | 5.98 | % | 41,347 | 5.97 | % | ||||
Loans held for sale | 8,566 | 3.21 | % | 7,416 | 3.13 | % | ||||
Loans held for investment | 1,032,137 | 5.85 | % | 1,045,467 | 5.96 | % | ||||
Total earning assets | 1,435,537 | 4.85 | % | 1,426,812 | 5.11 | % | ||||
Non-earning assets | 158,747 | 164,130 | ||||||||
Total average assets | $ | 1,594,284 | $ | 1,590,942 | ||||||
NOW | $ | 389,052 | 0.63 | % | $ | 321,036 | 1.05 | % | ||
MMDA | 172,978 | 0.72 | % | 151,974 | 1.12 | % | ||||
Savings | 117,686 | 1.12 | % | 114,358 | 1.28 | % | ||||
Certificates of Deposit | 489,199 | 1.73 | % | 544,192 | 2.26 | % | ||||
Short-term borrowings | 10,855 | 0.33 | % | 19,112 | 0.35 | % | ||||
Other borrowings | 76,923 | 4.31 | % | 102,112 | 4.91 | % | ||||
Total interest bearing liabilities | 1,256,693 | 1.34 | % | 1,252,784 | 1.91 | % | ||||
Non-interest bearing deposits | 220,370 | 222,083 | ||||||||
Non-interest bearing liabilities | 7,851 | 8,909 | ||||||||
Preferred equity | 16,967 | 26,300 | ||||||||
Common equity | 92,403 | 80,866 | ||||||||
Total average liabilities and equity | $ | 1,594,284 | $ | 1,590,942 | ||||||
Net interest spread | 3.51 | % | 3.20 | % | ||||||
Effect of non-interest bearing deposits | 0.20 | % | 0.29 | % | ||||||
Effect of leverage | (0.03 | )% | (0.06 | )% | ||||||
Net interest margin, tax-equivalent | 3.38 | % | 3.43 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.06 | % | ||||||
Loans | 0.02 | % | 0.02 | % | ||||||
Reported book net interest margin | 3.61 | % | 3.35 | % | ||||||
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: Other comprehensive income does not include year-end actuarial adjustments for the Company's defined benefit pension | ||||
plan. When the calculations have been completed, an adjustment will be made to the pension liability, deferred tax assets and | ||||
other comprehensive income. | ||||
Note 2: 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. | ||||