Attached files
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| 8-K - FORM 8-K - FIRST M&F CORP/MS | a2q2012earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
July 19, 2012
FOR IMMEDIATE RELEASE
First M&F Credit Metrics and Earnings Improve Across the Board
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today net income for the quarter ended June 30, 2012 of $1.753 million, or $0.14 basic and diluted earnings per share as compared to $1.106 million, or $0.07 basic and diluted earnings per share for the second quarter of 2011. The Company made net income of $1.607 million, or $0.12 basic and diluted earnings per share for the first quarter of 2012.
Hugh Potts, Jr., Chairman and CEO commented, “Per share earnings have doubled year-over-year, both quarter versus quarter and for the first half. The balance sheet is strengthening too, with asset quality metrics continuing to reflect consistent and material cleanup of the balance sheet. Non-accrual loans are down 80% from a year ago and non-performing assets are down 41%.”
Net Interest Income
Reported net interest income was down by 2.68% on lower volumes compared to the second quarter of 2011, with the net interest margin falling slightly to 3.72% on a tax equivalent basis in the second quarter of 2012 as compared to 3.75% in the second quarter of 2011. The net interest margin for the first quarter of 2012 was 3.67% as compared to 3.64% for the fourth quarter of 2011 and 3.72% for the third quarter of 2011. Yields on total loans fell to 5.61% in the second quarter of 2012 from 5.85% in the second quarter of 2011. Yields on total loans fell from the first quarter of 2012 to the second quarter as well. Average total loans were $1.004 billion for the second quarter of 2012 as compared to $1.007 billion for the first quarter of 2012 and $1.053 billion during the second quarter of 2011. Loans held for investment increased by $3.1 million in the second quarter of 2012 but fell by $16.8 million in the first quarter. Mr. Potts stated, “Although loan growth is sluggish, our balance sheet is more efficient now through a combination of lower excess cash and deleveraging.” Further commenting, Mr. Potts said, “The net interest margin continues to hold up in a tough credit and interest rate environment even as deposit cost benefits slow down.”
Deposit costs decreased in the second quarter of 2012 from the first quarter of 2012 and from the second quarter of 2011, in response to the continuing low rate environment. Deposit costs were .78% in the second quarter of 2012 as compared to 1.20% in the second quarter of 2011. Deposits fell by $49.2 million during the second quarter of 2012 and have fallen by $63.2 million since the second quarter of 2011. Most of the linked-quarter change was in non-core public fund deposits. The year-over-year decrease was mostly retail certificate of deposit funding. Management continues to focus on core deposit growth to encourage relationship-driven deposits as a stable source of funding.
Loans held for investment as a percentage of assets were 62.93% at June 30, 2012 as compared to 64.36% at June 30, 2011 and 63.52% at December 31, 2011. Loans held for investment fell by 5.94% since the second quarter of 2011 and deposits fell by 4.43%.
Non-interest Income
Non-interest income, excluding securities transactions and impairment of investments, for the second quarter of 2012 grew by 35.5% compared to the second quarter of 2011, with deposit-related income up 3.03%. Insurance agency commissions were down 9.40% quarter over quarter. The major contributor to the growth in non-interest income was mortgage income as mortgage origination and sale volumes were influenced by a surge in refinancing. Mortgage income for the quarter was up 459% year-over-year and up 219% compared to the first quarter. Mr. Potts commented, “Our non-interest income base is solid…the boost from mortgage revenues was possible because we were able to gear up our efforts to take advantage of volume opportunities in this low-rate environment.”
A major part of non-interest income consistently comes from deposit sources. Deposit revenues were up 3.03% quarter-over-quarter. Deposit revenues continue to be supported by debit card fee income, which grew by 15.75% in the second quarter of 2012 compared to the second quarter of 2011, while overdraft fee income fell by 2.88%.
Non-interest Expenses
Non-interest expenses were flat in the second quarter of 2012 as compared to the second quarter of 2011 largely due to volume-related increases in mortgage expenses mostly offset by lower foreclosed property expenses and lower salaries and employee benefits. Mr. Potts pointed out that, “Expense results reflect both discipline and savings from McKinley offset somewhat by offense-related resource allocation into growth niches.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the second quarter of 2012 were 1.26% as compared to .20% for the same period in 2011. Net charge-offs totaled $3.054 million for the quarter versus $.518 million a year ago and $1.149 million in the first quarter of 2012. Non-accrual and 90-day past due loans as a percent of total loans were .79% at the end of the second quarter of 2012 as compared to 3.20% at the end of the 2011 quarter. The allowance for loan losses as a percentage of loans held for investment was 1.56% at June 30, 2012 as compared to 1.80% at June 30, 2011. The provision for loan losses was flat year-over-year. Mr. Potts commented, “Throughout this credit cycle, we have worked on the premise that ultimately there would be a positive correlation between asset quality and earnings. We're seeing that play out now. As investor confidence in the sector improves and as funds flow into the micro-cap space, prices naturally react favorably. Since year-end, we've seen an 82% rise in share price." Further commenting Mr. Potts said, “Credit trends begun in 2010 continue to be positive, sustained and material. Many metrics are at, or near, pre-recession levels and others are in sight.”
Balance Sheet
Total assets at June 30, 2012 were $1.561 billion as compared to $1.569 billion at the end of 2011 and $1.623 billion at June 30, 2011. Total loans held for investment were $.983 billion compared to $.996 billion at the end of 2011 and $1.045 billion at June 30, 2011. Deposits were $1.361 billion compared to $1.371 billion at the end of 2011 and $1.424 billion at June 30, 2011. Total capital was $113.917 million, or $10.44 in book value per common share, at June 30, 2012. Commenting on capital, Mr. Potts said, “The Company is accumulating capital, improving ratios and preparing for more stringent regulations coming down the road. We still have preferred capital issued to the Treasury, but it's inexpensive, and as a Community Development Financial Institution under the Community Development Capital Initiative program, we have until 2018 before it re-prices. So with time, patience and good prospects, management intends to avoid a dilutive capital raise. Under present circumstances, our legacy and new shareholders should not be overly concerned about dilution.”
In closing Mr. Potts said, “The M&F story continues to materially improve along with performance. The story, though not exotic or flashy, is yet remarkable and noteworthy for its consistency and focus on remediation where it counts - where the problems are.”
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 25 communities in Mississippi, Alabama and Tennessee.
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) | |||||||||
June 30 | December 31 | June 30 | |||||||
2012 | 2011 | 2011 | |||||||
Cash and due from banks | $ | 37,147 | $ | 39,976 | $ | 41,146 | |||
Interest bearing bank balances | 20,708 | 39,391 | 103,847 | ||||||
Federal funds sold | 6,750 | 25,000 | 25,000 | ||||||
Securities available for sale (cost of | |||||||||
$371,424, $315,890 and $288,304) | 377,670 | 320,774 | 293,133 | ||||||
Loans held for sale | 22,291 | 26,073 | 2,117 | ||||||
Loans | 982,596 | 996,340 | 1,044,595 | ||||||
Allowance for loan losses | 15,310 | 14,953 | 18,805 | ||||||
Net loans | 967,286 | 981,387 | 1,025,790 | ||||||
Bank premises and equipment | 37,529 | 37,989 | 40,564 | ||||||
Accrued interest receivable | 6,060 | 6,122 | 5,970 | ||||||
Other real estate | 31,077 | 36,952 | 30,650 | ||||||
Other intangible assets | 4,373 | 4,586 | 4,799 | ||||||
Other assets | 50,605 | 50,401 | 50,074 | ||||||
Total assets | $ | 1,561,496 | $ | 1,568,651 | $ | 1,623,090 | |||
Non-interest bearing deposits | $ | 236,145 | $ | 231,718 | $ | 243,626 | |||
Interest bearing deposits | 1,125,193 | 1,139,745 | 1,180,873 | ||||||
Total deposits | 1,361,338 | 1,371,463 | 1,424,499 | ||||||
Federal funds and repurchase agreements | 3,224 | 4,398 | 5,047 | ||||||
Other borrowings | 40,333 | 43,001 | 45,492 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 844 | 1,023 | 1,306 | ||||||
Other liabilities | 10,912 | 8,242 | 5,765 | ||||||
Total liabilities | 1,447,579 | 1,459,055 | 1,513,037 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 18,198 | 17,564 | 16,962 | ||||||
Common stock, 9,172,098, 9,154,936 and 9,131,387 | |||||||||
shares issued & outstanding | 45,860 | 45,775 | 45,657 | ||||||
Additional paid-in capital | 31,890 | 31,895 | 31,935 | ||||||
Nonvested restricted stock awards | 836 | 674 | 718 | ||||||
Retained earnings | 16,699 | 14,456 | 13,224 | ||||||
Accumulated other comprehensive income (loss) | 434 | (768 | ) | 1,557 | |||||
Total equity | 113,917 | 109,596 | 110,053 | ||||||
Total liabilities & equity | $ | 1,561,496 | $ | 1,568,651 | $ | 1,623,090 | |||
First M&F Corporation and Subsidiary | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Interest and fees on loans | $ | 13,741 | $ | 15,281 | $ | 27,899 | $ | 30,656 | ||||
Interest on loans held for sale | 244 | 27 | 417 | 68 | ||||||||
Taxable investments | 1,563 | 1,931 | 3,053 | 3,702 | ||||||||
Tax exempt investments | 319 | 302 | 637 | 616 | ||||||||
Federal funds sold | 11 | 15 | 26 | 31 | ||||||||
Interest bearing bank balances | 28 | 46 | 79 | 98 | ||||||||
Total interest income | 15,906 | 17,602 | 32,111 | 35,171 | ||||||||
Interest on deposits | 2,233 | 3,523 | 4,746 | 7,370 | ||||||||
Interest on fed funds and repurchase agreements | 5 | 7 | 11 | 22 | ||||||||
Interest on other borrowings | 437 | 509 | 888 | 1,033 | ||||||||
Interest on subordinated debt | 315 | 292 | 586 | 750 | ||||||||
Total interest expense | 2,990 | 4,331 | 6,231 | 9,175 | ||||||||
Net interest income | 12,916 | 13,271 | 25,880 | 25,996 | ||||||||
Provision for possible loan losses | 2,280 | 2,280 | 4,560 | 4,860 | ||||||||
Net interest income after loan loss | 10,636 | 10,991 | 21,320 | 21,136 | ||||||||
Service charges on deposits | 2,548 | 2,473 | 5,005 | 4,931 | ||||||||
Mortgage banking income | 1,806 | 323 | 2,373 | 679 | ||||||||
Agency commission income | 848 | 936 | 1,677 | 1,828 | ||||||||
Fiduciary and brokerage income | 163 | 152 | 303 | 285 | ||||||||
Other income | 673 | 572 | 1,510 | 1,411 | ||||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$4, $87, $4 and $142 reclassified to/from other | ||||||||||||
comprehensive income | (4 | ) | (85 | ) | (4 | ) | (381 | ) | ||||
Gains on AFS securities | 1 | 341 | 592 | 1,690 | ||||||||
Total noninterest income | 6,035 | 4,712 | 11,456 | 10,443 | ||||||||
Salaries and employee benefits | 6,737 | 7,157 | 13,600 | 14,113 | ||||||||
Net occupancy expense | 932 | 951 | 1,840 | 1,940 | ||||||||
Equipment expenses | 423 | 451 | 886 | 916 | ||||||||
Software and processing expenses | 346 | 395 | 708 | 794 | ||||||||
FDIC insurance assessments | 553 | 577 | 1,067 | 1,351 | ||||||||
Foreclosed property expenses | 1,282 | 1,468 | 2,738 | 3,821 | ||||||||
Intangible asset amortization and impairment | 106 | 107 | 213 | 214 | ||||||||
Other expenses | 3,940 | 3,197 | 7,253 | 5,965 | ||||||||
Total noninterest expense | 14,319 | 14,303 | 28,305 | 29,114 | ||||||||
Net income before taxes | 2,352 | 1,400 | 4,471 | 2,465 | ||||||||
Income tax expense | 599 | 294 | 1,111 | 409 | ||||||||
Net income | $ | 1,753 | $ | 1,106 | $ | 3,360 | $ | 2,056 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income | $ | 1,753 | $ | 1,106 | $ | 3,360 | $ | 2,056 | ||||
Dividends and accretion on preferred stock | (471 | ) | (440 | ) | (934 | ) | (872 | ) | ||||
Net income applicable to common stock | 1,282 | 666 | 2,426 | 1,184 | ||||||||
Earnings attributable to participating securities | 56 | 5 | 61 | 8 | ||||||||
Net income allocated to common shareholders | $ | 1,226 | $ | 661 | $ | 2,365 | $ | 1,176 | ||||
Weighted average shares (basic) | 9,164,576 | 9,118,267 | 9,160,526 | 9,113,706 | ||||||||
Weighted average shares (diluted) | 9,164,576 | 9,118,267 | 9,160,526 | 9,113,706 | ||||||||
Basic earnings per share | $ | 0.14 | $ | 0.07 | $ | 0.26 | $ | 0.13 | ||||
Diluted earnings per share | $ | 0.14 | $ | 0.07 | $ | 0.26 | $ | 0.13 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
June 30 | December 31 | June 30 | December 31 | |||||||||
2012 | 2011 | 2011 | 2010 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.42 | % | 0.27 | % | 0.26 | % | 0.25 | % | ||||
Return on equity (annualized) (a) | 6.06 | % | 4.00 | % | 3.83 | % | 3.74 | % | ||||
Return on common equity (annualized) (a) | 5.21 | % | 2.81 | % | 2.61 | % | 2.87 | % | ||||
Efficiency ratio (c) | 74.94 | % | 78.47 | % | 78.92 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.69 | % | 3.68 | % | 3.67 | % | 3.43 | % | ||||
Net charge-offs to average loans (annualized) | 0.86 | % | 1.05 | % | 0.40 | % | 1.65 | % | ||||
Nonaccrual loans to total loans | 0.64 | % | 1.68 | % | 3.13 | % | 3.11 | % | ||||
90 day accruing loans to total loans | 0.15 | % | 0.06 | % | 0.07 | % | 0.09 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2012 | 2012 | 2011 | 2011 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.14 | $ | 0.12 | $ | 0.05 | $ | 0.10 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.44 | 10.20 | 10.05 | 10.23 | ||||||||
Closing stock price | 5.18 | 4.80 | 2.84 | 3.16 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 147,773 | $ | 144,319 | $ | 155,330 | $ | 143,133 | ||||
Non-residential real estate | 567,184 | 568,811 | 574,505 | 603,904 | ||||||||
Residential real estate | 189,927 | 188,891 | 186,815 | 185,564 | ||||||||
Home equity loans | 36,183 | 36,098 | 37,024 | 38,320 | ||||||||
Consumer loans | 41,529 | 41,376 | 42,666 | 44,045 | ||||||||
Total loans | $ | 982,596 | $ | 979,495 | $ | 996,340 | $ | 1,014,966 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 236,145 | $ | 238,603 | $ | 231,718 | $ | 222,042 | ||||
NOW deposits | 391,726 | 421,249 | 390,256 | 378,409 | ||||||||
MMDA deposits | 211,447 | 222,016 | 197,849 | 179,138 | ||||||||
Savings deposits | 116,598 | 121,872 | 119,693 | 118,814 | ||||||||
Core certificates of deposit under $100,000 | 208,684 | 213,944 | 227,867 | 250,130 | ||||||||
Core certificates of deposit $100,000 and over | 178,926 | 176,761 | 187,513 | 216,655 | ||||||||
Brokered certificates of deposit under $100,000 | 3,393 | 3,234 | 3,539 | 4,686 | ||||||||
Brokered certificates of deposit $100,000 and over | 14,419 | 12,829 | 13,028 | 13,985 | ||||||||
Total deposits | $ | 1,361,338 | $ | 1,410,508 | $ | 1,371,463 | $ | 1,383,859 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 6,443 | $ | 14,604 | $ | 17,177 | $ | 26,622 | ||||
Other real estate | 31,077 | 34,636 | 36,952 | 32,722 | ||||||||
Investment securities | 639 | 646 | 599 | 509 | ||||||||
Total nonperforming assets | $ | 38,159 | $ | 49,886 | $ | 54,728 | $ | 59,853 | ||||
Accruing loans past due 90 days or more | $ | 1,537 | $ | 245 | $ | 602 | $ | 252 | ||||
Restructured loans (accruing) | $ | 18,372 | $ | 19,077 | $ | 19,662 | $ | 19,712 | ||||
Total nonaccrual loan to loans | 0.64 | % | 1.45 | % | 1.68 | % | 2.59 | % | ||||
Total nonperforming credit assets to loans and ORE | 3.62 | % | 4.72 | % | 5.11 | % | 5.60 | % | ||||
Total nonperforming assets to assets ratio | 2.44 | % | 3.10 | % | 3.49 | % | 3.77 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 16,084 | $ | 14,953 | $ | 16,111 | $ | 18,805 | ||||
Provision for loan loss | 2,280 | 2,280 | 2,280 | 2,580 | ||||||||
Charge-offs | (3,460 | ) | (2,061 | ) | (4,001 | ) | (5,419 | ) | ||||
Recoveries | 406 | 912 | 563 | 145 | ||||||||
Ending balance | $ | 15,310 | $ | 16,084 | $ | 14,953 | $ | 16,111 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2012 | 2012 | 2011 | 2011 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 15,906 | $ | 16,205 | $ | 16,305 | $ | 17,239 | ||||
Interest expense | 2,990 | 3,241 | 3,662 | 4,014 | ||||||||
Net interest income | 12,916 | 12,964 | 12,643 | 13,225 | ||||||||
Provision for loan losses | 2,280 | 2,280 | 2,280 | 2,580 | ||||||||
Noninterest revenues | 6,035 | 5,421 | 5,912 | 5,219 | ||||||||
Noninterest expenses | 14,319 | 13,986 | 15,077 | 14,143 | ||||||||
Net income before taxes | 2,352 | 2,119 | 1,198 | 1,721 | ||||||||
Income tax expense | 599 | 512 | 211 | 391 | ||||||||
Net income | $ | 1,753 | $ | 1,607 | $ | 987 | $ | 1,330 | ||||
Preferred dividends | (471 | ) | (463 | ) | (454 | ) | (448 | ) | ||||
Net income applicable to common stock | 1,282 | 1,144 | 533 | 882 | ||||||||
Earnings attributable to participating securities | 56 | 5 | 3 | 4 | ||||||||
Net income allocated to common shareholders | $ | 1,226 | $ | 1,139 | $ | 530 | $ | 878 | ||||
Tax-equivalent net interest income | $ | 13,134 | $ | 13,181 | $ | 12,865 | $ | 13,450 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,577,420 | $ | 1,607,013 | $ | 1,564,531 | $ | 1,592,030 | ||||
Loans held for investment | 973,545 | 983,800 | 993,869 | 1,028,372 | ||||||||
Earning assets | 1,420,370 | 1,445,332 | 1,401,948 | 1,433,189 | ||||||||
Deposits | 1,379,716 | 1,409,393 | 1,366,628 | 1,390,834 | ||||||||
Equity | 112,466 | 110,745 | 110,483 | 110,412 | ||||||||
Common equity | 94,430 | 93,025 | 93,077 | 93,307 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.45 | % | 0.40 | % | 0.25 | % | 0.33 | % | ||||
Return on average equity (annualized) (a) | 6.27 | % | 5.84 | % | 3.54 | % | 4.78 | % | ||||
Return on average common equity (annualized) (a) | 5.46 | % | 4.95 | % | 2.27 | % | 3.76 | % | ||||
Average equity to average assets | 7.13 | % | 6.89 | % | 7.06 | % | 6.94 | % | ||||
Tangible equity to tangible assets (b) | 7.04 | % | 6.67 | % | 6.71 | % | 6.71 | % | ||||
Tangible common equity to tangible assets (b) | 5.87 | % | 5.55 | % | 5.59 | % | 5.61 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.72 | % | 3.67 | % | 3.64 | % | 3.72 | % | ||||
Efficiency ratio (c) | 74.70 | % | 75.18 | % | 80.29 | % | 75.76 | % | ||||
Net charge-offs to average loans (annualized) | 1.26 | % | 0.47 | % | 1.37 | % | 2.03 | % | ||||
Nonaccrual loans to total loans | 0.64 | % | 1.45 | % | 1.68 | % | 2.59 | % | ||||
90 day accruing loans to total loans | 0.15 | % | 0.02 | % | 0.06 | % | 0.02 | % | ||||
Price to book | 0.50x | 0.47x | 0.28x | 0.31x | ||||||||
Price to earnings | 9.25x | 10.00x | 14.20x | 7.90x | ||||||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
Historical Earnings Trends: | Earnings | Earnings | ||||||||||
Applicable to | Allocated to | |||||||||||
Common | Common | |||||||||||
Earnings | Stock | Shareholders | EPS | |||||||||
(in thousands) | (in thousands) | (in thousands) | (diluted) | |||||||||
2Q 2012 | $ | 1,753 | $ | 1,282 | $ | 1,226 | $ | 0.14 | ||||
1Q 2012 | 1,607 | 1,144 | 1,139 | 0.12 | ||||||||
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 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
2Q 2012 | $ | 41.1 | 31.48 | % | 1.54 | % | ||||||
1Q 2012 | 40.5 | 29.14 | % | 1.36 | % | |||||||
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 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
2Q 2012 | 3.65 | % | 74.70 | % | ||||||||
1Q 2012 | 3.50 | % | 75.18 | % | ||||||||
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 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD June 2012 | QTD June 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 30,923 | 0.37 | % | $ | 71,291 | 0.26 | % | ||
Federal funds sold | 15,082 | 0.27 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 333,794 | 1.88 | % | 262,915 | 2.95 | % | ||||
Tax-exempt investments (amortized cost) | 36,610 | 5.59 | % | 32,407 | 5.98 | % | ||||
Loans held for sale | 30,416 | 3.22 | % | 2,928 | 3.75 | % | ||||
Loans held for investment | 973,545 | 5.69 | % | 1,050,136 | 5.85 | % | ||||
Total earning assets | 1,420,370 | 4.57 | % | 1,444,677 | 5.00 | % | ||||
Non-earning assets | 157,050 | 154,194 | ||||||||
Total average assets | $ | 1,577,420 | $ | 1,598,871 | ||||||
NOW | $ | 404,958 | 0.43 | % | $ | 400,942 | 0.71 | % | ||
MMDA | 217,533 | 0.37 | % | 167,657 | 0.77 | % | ||||
Savings | 121,778 | 0.95 | % | 117,783 | 1.12 | % | ||||
Certificates of Deposit | 402,703 | 1.31 | % | 493,722 | 1.76 | % | ||||
Short-term borrowings | 2,974 | 0.62 | % | 8,637 | 0.34 | % | ||||
Other borrowings | 71,771 | 4.21 | % | 77,440 | 4.15 | % | ||||
Total interest bearing liabilities | 1,221,717 | 0.98 | % | 1,266,181 | 1.37 | % | ||||
Non-interest bearing deposits | 232,744 | 216,227 | ||||||||
Non-interest bearing liabilities | 10,493 | 7,552 | ||||||||
Preferred equity | 18,036 | 16,815 | ||||||||
Common equity | 94,430 | 92,096 | ||||||||
Total average liabilities and equity | $ | 1,577,420 | $ | 1,598,871 | ||||||
Net interest spread | 3.59 | % | 3.63 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.20 | % | ||||||
Effect of leverage | (0.03 | )% | (0.08 | )% | ||||||
Net interest margin, tax-equivalent | 3.72 | % | 3.75 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.02 | % | ||||||
Reported book net interest margin | 3.66 | % | 3.68 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD June 2012 | YTD June 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 55,067 | 0.29 | % | $ | 82,515 | 0.24 | % | ||
Federal funds sold | 20,041 | 0.26 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 316,708 | 1.94 | % | 256,026 | 2.92 | % | ||||
Tax-exempt investments (amortized cost) | 35,790 | 5.71 | % | 33,169 | 5.98 | % | ||||
Loans held for sale | 26,573 | 3.15 | % | 3,593 | 3.81 | % | ||||
Loans held for investment | 978,672 | 5.74 | % | 1,053,501 | 5.88 | % | ||||
Total earning assets | 1,432,851 | 4.57 | % | 1,453,804 | 4.94 | % | ||||
Non-earning assets | 159,365 | 156,748 | ||||||||
Total average assets | $ | 1,592,216 | $ | 1,610,552 | ||||||
NOW | $ | 412,108 | 0.45 | % | $ | 401,866 | 0.76 | % | ||
MMDA | 222,067 | 0.45 | % | 164,635 | 0.81 | % | ||||
Savings | 121,307 | 0.97 | % | 116,805 | 1.17 | % | ||||
Certificates of Deposit | 409,895 | 1.35 | % | 503,896 | 1.81 | % | ||||
Short-term borrowings | 4,014 | 0.53 | % | 16,235 | 0.27 | % | ||||
Other borrowings | 72,439 | 4.09 | % | 78,843 | 4.56 | % | ||||
Total interest bearing liabilities | 1,241,830 | 1.01 | % | 1,282,280 | 1.44 | % | ||||
Non-interest bearing deposits | 229,177 | 212,809 | ||||||||
Non-interest bearing liabilities | 9,603 | 7,188 | ||||||||
Preferred equity | 17,878 | 16,674 | ||||||||
Common equity | 93,728 | 91,601 | ||||||||
Total average liabilities and equity | $ | 1,592,216 | $ | 1,610,552 | ||||||
Net interest spread | 3.56 | % | 3.50 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.21 | % | ||||||
Effect of leverage | (0.03 | )% | (0.04 | )% | ||||||
Net interest margin, tax-equivalent | 3.69 | % | 3.67 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.63 | % | 3.61 | % | ||||||
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) | ||||