EXHIBIT 99.1

PRESS RELEASE	FOR IMMEDIATE RELEASE
January 22, 2014	For more information contact:
First South Bancorp, Inc.	Bruce Elder (CEO) (252) 940-4936
	Scott McLean (CFO) (252) 940-5016
	Website: www.firstsouthnc.com

 

First South Bancorp, Inc. Reports Increase in December 31, 2013 Quarterly and

Year End Operating Results

 

Washington, North Carolina - 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.

 

(More)

(NASDAQ: FSBK)

 

 

First South Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition

 

		December 31,				December 31,
		2013				2012
		(unaudited)				(*)
Assets
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 to loans 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