WASHINGTON, N.C., Jan. 26, 2017 /PRNewswire/ -- First South Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), the parent holding company of First South Bank (the "Bank"), reports its unaudited financial results for the quarter and year ended December 31, 2016.
The Company's diluted earnings per common share (EPS) for the fourth quarter of 2016 increased 31.3% to $0.21 per share from $0.16 per share for the fourth quarter of 2015. Diluted EPS for the full fiscal year of 2016 increased 49.0% to $0.73 per common share from $0.49 per common share for fiscal year 2015. The Company continues to generate solid core revenue and net interest income from strong loan and deposit growth, while maintaining excellent credit quality and enhancing its capital position.
The Company's net income increased to $2.0 million, or 27.2%, in the fourth quarter of 2016 from, $1.6 million for the fourth quarter of 2015. Net income for fiscal year 2016 increased to $7.0 million, or 48.6%, from $4.7 million for fiscal year 2015.
"The Company continues to deliver quality core financial results, showcasing the execution of our strategic plan and our ability to consistently generate earnings through sustainable revenue growth in commercial, consumer and mortgage banking services," Chief Executive Officer Bruce Elder said. "We are also pleased that the depth of new and existing customer relationships has resulted in robust deposit growth, which continues to support very healthy loan growth. Our capital levels and capital creation through retained earnings supports continued organic balance sheet growth."
FOURTH QUARTER 2016 HIGHLIGHTS
- Strong earnings performance with net income of $2.0 million, diluted EPS of $0.21 per share, return on average assets (ROA) of 0.80%, return on average equity (ROE) of 8.94% and return on average tangible common equity (ROTCE) (a non-GAAP measure) of 9.82%.
- Loans and leases held for investment (HFI) grew $18.2 million during the quarter, to $700.6 million, representing an annualized growth rate of 10.7%.
- Deposits grew $10.8 million during the quarter to $870.6 million, or an annualized growth rate of 5.0%.
FISCAL YEAR 2016 HIGHLIGHTS
- Strong earnings performance with net income of $7.0 million, diluted EPS of $0.73 per share, ROA of 0.72%, ROE of 8.02% and ROTCE of 8.86%.
- Strategic execution as evidenced by highest annual diluted EPS since 2008.
- Grew total assets $44.4 million, or 4.7%, during 2016.
- Continued to maintain a strong capital position.
- Loans and leases HFI grew $93.6 million or 15.4% during 2016.
- Total deposits grew $59.3 million, or 7.3%, during 2016.
- Total non-interest bearing deposits grew 16.1% to $196.9 million.
- Net interest income grew by $3.21 million, or 10.9%, to $32.6 million.
- Net interest margin increased to 3.71% for fiscal year 2016.
- Non-interest income was $14.2, million which represents 30.3% of total revenues.
- Non-performing assets to total assets declined to 0.63% from 1.00% at the previous year-end.
- Completed the purchase of mortgage servicing rights for 452 high-quality Freddie Mac and Fannie Mae loans with an unpaid principal balance of $84.6 million at settlement.
- Increased quarterly dividend payment rate to $0.03 per share, a 20% increase.
- Expanded Small Business Administration loan sales and servicing.
- Consolidated three branches into nearby locations with the goal of positively impacting efficiency.
Important disclosures about and reconciliations of non-GAAP measures, including ROTCE, to the corresponding GAAP measures, are provided below and attached to this press release.
The Company's strong loan and deposit growth continues to support revenue increases, allowing for net interest margin expansion despite the prevailing low interest rate environment. As a result, our net interest income (NII) grew to $8.4 million in the fourth quarter of 2016, from $7.7 million in the comparative 2015 fourth quarter. NII for fiscal year 2016 grew to $32.6 million, increasing 10.9% from the $29.4 million of NII generated for fiscal year 2015.
Total non-interest income was $3.4 million, or 28.6% of total revenue (net interest income plus noninterest income) in the fourth quarter of 2016, compared to $3.7 million, or 32.6%, in the comparative 2015 fourth quarter. Total non-interest income for fiscal year 2016 was $14.2 million, or 30.3% of total revenue, compared to $14.3 million, or 32.7% for fiscal year 2015. The decline in non-interest income is attributable to a decline in non-core gains on sales of investment securities. The Bank had no gains from investment securities sales for the 2016 fourth quarter, compared to $463,000 for the prior year quarter. Gains realized from the sale of investment securities for fiscal years 2016 and 2015 were $467,000 and $1.4 million, respectively. We have sold investment securities primarily to fund the growth in our loan and leases HFI.
The Company's efficiency ratio for the fourth quarter of 2016 improved to 74.16%, from 81.41% in the comparative fourth quarter of 2015. The efficiency ratio for fiscal year 2016 improved to 76.51%, from 84.53% for fiscal year 2015. Non-interest expenses in the fourth quarter of 2016 declined to $8.8 million, from $9.1 million in the comparative fourth quarter of 2015. Total non-interest expenses for fiscal year 2016 declined to $35.9 million, from $36.4 million for fiscal year 2015.
Income tax expense was $775,000 for the 2016 fourth quarter, compared to $484,000 for the 2015 fourth quarter. The effective income tax rates were 28.00% and 23.60% for these reporting periods, respectively. For fiscal year 2016, income tax expense was $3.0 million versus $1.8 million for fiscal year 2015. The effective income tax rates were 29.84% and 28.18% for fiscal years 2016 and 2015, respectively.
BALANCE SHEET GROWTH
Loans and leases HFI totaled $700.6 million at December 31, 2016, increasing $93.6 million, or 15.4%, over the $607.0 million held at December 31, 2015. Loans held for sale totaled $5.1 million at December 31, 2016, growing 29.3% from the $3.9 million held at the end of fiscal year 2015. Investment securities and interest-bearing deposits at other banks declined to $216.4 million at December 31, 2016, compared to $267.4 million at year end 2015, resulting primarily from sales of investment securities to fund growth in our loans and leases HFI portfolio.
Deposits totaled $870.6 million at December 31, 2016, increasing $59.3 million, or 7.3%, from $811.3 million at December 31, 2015. Non-maturity deposits (personal and business checking, money market, and savings accounts) grew by $62.8 million, or 11.4%, to $614.1 million at December 31, 2016, from $551.3 million at December 31, 2015. Certificates of deposit (CDs) declined to $256.6 million at December 31, 2016, from $260.0 million at December 31, 2015. CDs represented 29.5% and 32.1% of total deposits at December 31, 2016, and December 31, 2015, respectively.
ASSET QUALITY
Solid asset quality metrics in the fourth quarter of 2016 continue to reflect the Company's disciplined credit culture.
Non-performing assets (NPAs) declined to $6.3 million at December 31, 2016, or 0.63% of total assets, from $9.4 million, or 1.00% of total assets, at December 31, 2015. NPAs at December 31, 2016 included $3.2 million of other real estate owned (OREO), which declined by $2.9 million, or 47.3%, from $6.1 million at December 31, 2015. Nonaccrual loans and leases were $3.1 million at December 31, 2016, or 0.44% of loans and leases HFI, compared to $3.2 million, or 0.53%, at December 31, 2015.
The provision for credit losses in the 2016 fourth quarter declined to $200,000, from $325,000 for the 2015 fourth quarter. The provision for credit losses increased to $970,000 in fiscal year 2016, from $800,000 in fiscal year 2015. The allowance for loan losses represented 1.24% of loans and leases HFI at December 31, 2016, compared to 1.30% at December 31, 2015.
REGULATORY CAPITAL STRENGTH
As of December 31, 2016, reported regulatory capital ratios at the Bank were 13.01% for total risk-based capital, 11.80% for tier 1 risk-based capital, 11.80% for common equity tier 1 risk-based capital and 8.89% for tier 1 leverage, compared to 13.29% for total risk-based capital, 12.06% for tier 1 risk-based capital, 12.06% for common equity tier 1 risk-based capital and 8.67% for tier 1 leverage at December 31, 2015.
CORPORATE AND INVESTOR INFORMATION
First South Bank has been serving the citizens of eastern and central North Carolina since 1902 and offers a variety of financial products and services to business and individual customers. The Bank operates through its main office headquartered in Washington, North Carolina, and has 30 full-service branch offices located throughout eastern and central North Carolina.
The Bank also provides a full menu of leasing services through its wholly-owned subsidiary, First South Leasing, LLC. In addition, under its First South Wealth Management division, the Bank makes securities brokerage services available through an affiliation with an independent broker/dealer.
Additional investor information for the Company and the Bank may be accessed on our website at www.firstsouthnc.com.
The Company's common stock symbol as traded on the NASDAQ Global Select Market is "FSBK".
FORWARD-LOOKING STATEMENTS
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. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
NON-GAAP FINANCIAL MEASURES
This press release and the Supplemental Financial Data contain financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP) in the United States. Management uses these "non-GAAP" measures in their analysis of the Company's performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures are provided within the accompanying tables to this press release.
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, | |||||
2016 | 2015 | |||||
(unaudited) | (*) | |||||
Assets | ||||||
Cash and due from banks | $ | 22,854,712 | $ | 19,425,747 | ||
Interest-bearing deposits with banks | 23,320,968 | 18,565,521 | ||||
Investment securities available for sale, at fair value | 192,606,119 | 248,294,725 | ||||
Investment securities held to maturity | 509,617 | 508,456 | ||||
Mortgage loans held for sale | 5,098,518 | 3,943,798 | ||||
Loans and leases held for investment | 700,642,291 | 607,014,247 | ||||
Allowance for loan and lease losses | (8,673,172) | (7,866,523) | ||||
Net loans and leases held for investment | 691,969,119 | 599,147,724 | ||||
Premises and equipment, net | 11,291,596 | 13,664,937 | ||||
Assets held for sale | 192,720 | - | ||||
Other real estate owned | 3,229,423 | 6,125,054 | ||||
Federal Home Loan Bank stock, at cost | 1,573,700 | 2,369,300 | ||||
Accrued interest receivable | 3,525,684 | 2,874,506 | ||||
Goodwill | 4,218,576 | 4,218,576 | ||||
Mortgage servicing rights | 2,148,905 | 1,265,589 | ||||
Identifiable intangible assets | 1,611,187 | 1,895,514 | ||||
Bank-owned life insurance | 18,080,183 | 15,635,140 | ||||
Prepaid expenses and other assets | 8,470,887 | 8,348,385 | ||||
Total assets | $ | 990,701,914 | $ | 946,282,972 | ||
Liabilities and Stockholders' Equity | ||||||
Deposits: | ||||||
Non-interest bearing demand | $ | 196,917,165 | $ | 169,545,849 | ||
Interest bearing demand | 272,098,903 | 246,376,521 | ||||
Savings | 145,031,981 | 135,369,668 | ||||
Large denomination certificates of deposit | 122,819,510 | 116,299,196 | ||||
Other time | 133,732,804 | 143,730,993 | ||||
Total deposits | 870,600,363 | 811,322,227 | ||||
Borrowed money | 17,000,000 | 37,000,000 | ||||
Junior subordinated debentures | 10,310,000 | 10,310,000 | ||||
Other liabilities | 5,607,832 | 5,479,971 | ||||
Total liabilities | 903,518,195 | 864,112,198 | ||||
Common stock, $.01 par value, 25,000,000 shares authorized; | ||||||
9,494,935 and 9,489,222 shares outstanding, respectively | 94,949 | 94,892 | ||||
Additional paid-in capital | 36,018,743 | 35,936,911 | ||||
Retained earnings | 49,560,595 | 43,691,073 | ||||
Accumulated other comprehensive income | 1,509,432 | 2,447,898 | ||||
Total stockholders' equity | 87,183,719 | 82,170,774 | ||||
Total liabilities and stockholders' equity | $ | 990,701,914 | $ | 946,282,972 | ||
(*) Derived from audited consolidated financial statements |
First South Bancorp, Inc. and Subsidiary | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (*) | ||||||||||
Interest income: | |||||||||||||
Interest and fees on loans | $ | 7,999,279 | $ | 7,005,095 | $ | 30,748,105 | $ | 25,839,566 | |||||
Interest on investments and deposits | 1,336,777 | 1,563,857 | 5,468,110 | 6,611,037 | |||||||||
Total interest income | 9,336,056 | 8,568,952 | 36,216,215 | 32,450,603 | |||||||||
Interest expense: | |||||||||||||
Interest on deposits | 734,276 | 637,680 | 2,829,085 | 2,367,750 | |||||||||
Interest on borrowings | 59,852 | 63,272 | 247,536 | 124,865 | |||||||||
Interest on junior subordinated notes | 125,631 | 140,039 | 534,258 | 561,694 | |||||||||
Total interest expense | 919,759 | 840,991 | 3,610,879 | 3,054,309 | |||||||||
Net interest income | 8,416,297 | 7,727,961 | 32,605,336 | 29,396,294 | |||||||||
Provision for credit losses | 200,000 | 325,000 | 970,000 | 800,000 | |||||||||
Net interest income after provision for credit losses | 8,216,297 | 7,402,961 | 31,635,336 | 28,596,294 | |||||||||
Non-interest income: | |||||||||||||
Deposit fees and service charges | 1,841,351 | 2,004,933 | 7,587,686 | 8,072,893 | |||||||||
Loan fees and charges | 102,765 | 89,286 | 370,977 | 268,482 | |||||||||
Mortgage loan servicing fees | 386,283 | 283,070 | 1,237,054 | 1,090,196 | |||||||||
Gain on sale and other fees on mortgage loans | 537,507 | 536,536 | 2,332,524 | 2,022,813 | |||||||||
Gain on sale of other real estate, net | 80,548 | 30,537 | 131,481 | 40,351 | |||||||||
Gain on sale of investment securities | 0 | 463,203 | 467,470 | 1,417,716 | |||||||||
Other income | 423,886 | 328,129 | 2,060,312 | 1,385,524 | |||||||||
Total non-interest income | 3,372,340 | 3,735,694 | 14,187,504 | 14,297,975 | |||||||||
Non-interest expense: | |||||||||||||
Compensation and fringe benefits | 4,863,584 | 4,902,583 | 19,819,368 | 19,377,688 | |||||||||
Federal deposit insurance premiums | 152,523 | 164,324 | 631,799 | 609,406 | |||||||||
Premises and equipment | 1,363,551 | 1,355,384 | 5,467,277 | 5,331,960 | |||||||||
Marketing | 133,700 | 221,831 | 702,257 | 820,308 | |||||||||
Data processing | 786,096 | 778,070 | 3,089,513 | 3,583,170 | |||||||||
Amortization of intangible assets | 168,920 | 128,447 | 570,902 | 515,044 | |||||||||
Other real estate owned expense | 127,521 | 168,849 | 553,143 | 631,675 | |||||||||
Other | 1,223,301 | 1,367,195 | 5,066,180 | 5,504,476 | |||||||||
Total non-interest expense | 8,819,196 | 9,086,683 | 35,900,439 | 36,373,727 | |||||||||
Income before income tax expense | 2,769,441 | 2,051,972 | 9,922,401 | 6,520,542 | |||||||||
Income tax expense | 775,298 | 484,346 | 2,961,139 | 1,837,329 | |||||||||
NET INCOME | $ | 1,994,143 | $ | 1,567,626 | $ | 6,961,262 | $ | 4,683,213 | |||||
Per share data: | |||||||||||||
Basic earnings per share | $ | 0.21 | $ | 0.17 | $ | 0.73 | $ | 0.49 | |||||
Diluted earnings per share | $ | 0.21 | $ | 0.16 | $ | 0.73 | $ | 0.49 | |||||
Dividends per share | $ | 0.030 | $ | 0.025 | $ | 0.115 | $ | 0.10 | |||||
Average basic shares outstanding | 9,494,935 | 9,489,222 | 9,493,700 | 9,521,392 | |||||||||
Average diluted shares outstanding | 9,529,753 | 9,513,916 | 9,522,765 | 9,542,401 | |||||||||
(*) Derived from audited consolidated financial statements | |||||||||||||
First South Bancorp, Inc. | Supplemental Financial Data (Unaudited) | |||||||||||||||
Quarter to Date | Year to Date | |||||||||||||||
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | ||||||||||
(dollars in thousands except per share data) | ||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||
Total assets | $ | 990,702 | $ | 985,795 | $ | 961,479 | $ | 940,108 | $ | 946,283 | $ | 990,702 | $ | 946,283 | ||
Loans held for sale: | $ | 5,099 | $ | 7,313 | $ | 5,252 | $ | 2,490 | $ | 3,944 | $ | 5,099 | $ | 3,944 | ||
Loans and leases held for investment (HFI): | ||||||||||||||||
Mortgage | $ | 74,905 | $ | 74,710 | $ | 73,100 | $ | 73,412 | $ | 71,866 | $ | 74,905 | $ | 71,866 | ||
Commercial | 535,047 | 518,265 | 510,678 | 482,779 | 454,877 | 535,047 | 454,877 | |||||||||
Consumer | 69,454 | 69,039 | 66,138 | 64,521 | 63,036 | 69,454 | 63,036 | |||||||||
Leases | 21,236 | 20,452 | 18,927 | 18,333 | 17,235 | 21,236 | 17,235 | |||||||||
Total loans and leases HFI | 700,642 | 682,466 | 668,843 | 639,045 | 607,014 | 700,642 | 607,014 | |||||||||
Allowance for loan and lease losses | (8,673) | (8,498) | (8,338) | (8,135) | (7,867) | (8,673) | (7,867) | |||||||||
Net loans and leases HFI | $ | 691,969 | $ | 673,968 | $ | 660,505 | $ | 630,910 | $ | 599,147 | $ | 691,969 | $ | 599,147 | ||
Cash & interest bearing deposits | $ | 46,176 | $ | 57,209 | $ | 40,734 | $ | 36,115 | $ | 37,991 | $ | 46,176 | $ | 37,991 | ||
Investment securities | 193,116 | 193,765 | 200,364 | 213,520 | 248,803 | 193,116 | 248,803 | |||||||||
Bank-owned life insurance | 18,080 | 17,937 | 17,795 | 17,653 | 15,635 | 18,080 | 15,635 | |||||||||
Premises and equipment | 11,292 | 11,609 | 11,671 | 12,144 | 13,665 | 11,292 | 13,665 | |||||||||
Goodwill | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | 4,219 | |||||||||
Mortgage servicing rights | 2,149 | 2,091 | 1,273 | 1,247 | 1,266 | 2,149 | 1,266 | |||||||||
Identifiable intangible assets | 1,611 | 1,682 | 1,753 | 1,824 | 1,896 | 1,611 | 1,896 | |||||||||
Deposits: | ||||||||||||||||
Non-interest checking | $ | 196,917 | $ | 189,873 | $ | 177,281 | $ | 164,244 | $ | 169,546 | $ | 196,917 | $ | 169,546 | ||
Interest checking | 189,401 | 176,034 | 170,153 | 171,323 | 173,934 | 189,401 | 173,934 | |||||||||
Money market | 82,698 | 88,081 | 72,054 | 73,000 | 72,442 | 82,698 | 72,442 | |||||||||
Savings | 145,032 | 141,701 | 142,151 | 146,255 | 135,370 | 145,032 | 135,370 | |||||||||
Certificates | 256,552 | 264,142 | 263,823 | 263,845 | 260,030 | 256,552 | 260,030 | |||||||||
Total deposits | $ | 870,600 | $ | 859,831 | $ | 825,462 | $ | 818,667 | $ | 811,322 | $ | 870,600 | $ | 811,322 | ||
Borrowings | $ | 17,000 | $ | 20,000 | $ | 32,500 | $ | 21,500 | $ | 37,000 | $ | 17,000 | $ | 37,000 | ||
Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||
Stockholders' equity | 87,184 | 88,294 | 87,327 | 84,179 | 82,171 | 87,184 | 82,171 | |||||||||
Consolidated earnings summary: | ||||||||||||||||
Interest income | $ | 9,336 | $ | 9,210 | $ | 8,998 | $ | 8,672 | $ | 8,569 | $ | 36,216 | $ | 32,450 | ||
Interest expense | 920 | 911 | 898 | 882 | 841 | 3,611 | 3,054 | |||||||||
Net interest income | 8,416 | 8,299 | 8,100 | 7,790 | 7,728 | 32,605 | 29,396 | |||||||||
Provision for credit losses | 200 | 220 | 325 | 225 | 325 | 970 | 800 | |||||||||
Noninterest income | 3,372 | 3,691 | 3,548 | 3,576 | 3,736 | 14,187 | 14,298 | |||||||||
Noninterest expense | 8,819 | 8,929 | 9,046 | 9,106 | 9,087 | 35,900 | 36,374 | |||||||||
Income before taxes | 2,769 | 2,841 | 2,277 | 2,035 | 2,052 | 9,922 | 6,520 | |||||||||
Income tax expense | 775 | 947 | 665 | 574 | 484 | 2,961 | 1,837 | |||||||||
Net income | $ | 1,994 | $ | 1,894 | $ | 1,612 | $ | 1,461 | $ | 1,568 | $ | 6,961 | $ | 4,683 | ||
Per Share Data: | ||||||||||||||||
Basic earnings per share | $ | 0.21 | $ | 0.20 | $ | 0.17 | $ | 0.15 | $ | 0.17 | $ | 0.73 | $ | 0.49 | ||
Diluted earnings per share | $ | 0.21 | $ | 0.20 | $ | 0.17 | $ | 0.15 | $ | 0.16 | $ | 0.73 | $ | 0.49 | ||
Dividends per share | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.025 | $ | 0.025 | $ | 0.115 | $ | 0.10 | ||
Book value per share | $ | 9.18 | $ | 9.30 | $ | 9.20 | $ | 8.87 | $ | 8.66 | $ | 9.18 | $ | 8.66 | ||
Shares outstanding | 9,494,935 | 9,494,935 | 9,493,776 | 9,493,776 | 9,489,222 | 9,494,935 | 9,489,222 | |||||||||
Average basic shares | 9,494,935 | 9,494,861 | 9,493,776 | 9,491,201 | 9,489,222 | 9,493,700 | 9,521,392 | |||||||||
Average diluted shares | 9,529,753 | 9,525,302 | 9,519,565 | 9,514,797 | 9,513,916 | 9,522,765 | 9,542,401 | |||||||||
Performance ratios (tax equivalent): | ||||||||||||||||
Yield on average earning assets | 4.07% | 4.13% | 4.17% | 4.07% | 4.03% | 4.11% | 4.01% | |||||||||
Cost of interest bearing liabilities | 0.52% | 0.52% | 0.52% | 0.52% | 0.49% | 0.52% | 0.47% | |||||||||
Net interest spread | 3.55% | 3.61% | 3.64% | 3.55% | 3.54% | 3.59% | 3.54% | |||||||||
Net interest margin | 3.68% | 3.73% | 3.76% | 3.66% | 3.64% | 3.71% | 3.64% | |||||||||
Average earning assets to total average assets | 92.92% | 92.42% | 92.38% | 92.20% | 92.19% | 92.49% | 91.63% | |||||||||
Return on average assets (annualized) | 0.80% | 0.78% | 0.68% | 0.63% | 0.67% | 0.72% | 0.52% | |||||||||
Return on average equity (annualized) | 8.94% | 8.52% | 7.55% | 6.97% | 7.52% | 8.02% | 5.72% | |||||||||
Efficiency ratio | 74.16% | 73.84% | 77.59% | 80.74% | 81.41% | 76.51% | 84.53% | |||||||||
Average assets | $ | 992,192 | $ | 968,729 | $ | 947,761 | $ | 938,702 | $ | 930,978 | $ | 961,856 | $ | 897,795 | ||
Average earning assets | $ | 921,984 | $ | 895,290 | $ | 875,529 | $ | 865,463 | $ | 858,243 | $ | 889,574 | $ | 822,641 | ||
Average equity | $ | 88,694 | $ | 88,481 | $ | 85,927 | $ | 84,265 | $ | 82,712 | $ | 86,844 | $ | 81,893 | ||
Equity/Assets | 8.80% | 8.96% | 9.08% | 8.95% | 8.68% | 8.80% | 8.68% | |||||||||
First South Bancorp, Inc. | Supplemental Financial Data (Unaudited) | |||||||||||||||
Quarter to Date | Year to Date | |||||||||||||||
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | ||||||||||
(dollars in thousands except per share data) | ||||||||||||||||
Asset quality data and ratios: | ||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||
Non-TDR nonaccrual loans and leases | ||||||||||||||||
Earning | $ | 410 | $ | 569 | $ | 555 | $ | 945 | $ | 985 | $ | 410 | $ | 985 | ||
Non-Earning | 1,257 | 1,289 | 1,075 | 895 | 710 | 1,257 | 710 | |||||||||
Total Non-TDR nonaccrual loans and leases | $ | 1,667 | $ | 1,858 | $ | 1,630 | $ | 1,840 | $ | 1,695 | $ | 1,667 | $ | 1,695 | ||
TDR nonaccrual loans and leases | ||||||||||||||||
Current TDRs | $ | 422 | $ | 792 | $ | 706 | $ | 847 | $ | 1,343 | $ | 422 | $ | 1,343 | ||
Past Due TDRs | 962 | 248 | 250 | 154 | 159 | 962 | 159 | |||||||||
Total TDR nonaccrual loans and leases | $ | 1,384 | $ | 1,040 | $ | 956 | $ | 1,001 | $ | 1,502 | $ | 1,384 | $ | 1,502 | ||
Total nonaccrual loans and leases | $ | 3,051 | $ | 2,898 | $ | 2,586 | $ | 2,841 | $ | 3,197 | $ | 3,051 | $ | 3,197 | ||
Loans and leases >90 days past due, still accruing | 0 | 0 | 218 | 153 | 115 | 0 | 115 | |||||||||
Other real estate owned | 3,229 | 4,810 | 5,541 | 5,956 | 6,125 | 3,229 | 6,125 | |||||||||
Total nonperforming assets | $ | 6,280 | $ | 7,708 | $ | 8,345 | $ | 8,950 | $ | 9,437 | $ | 6,280 | $ | 9,437 | ||
Allowance for loan and lease losses to | ||||||||||||||||
loans and leases HFI | 1.24% | 1.25% | 1.25% | 1.27% | 1.30% | 1.24% | 1.30% | |||||||||
Net charge-offs (recoveries) | $ | 25 | $ | 60 | $ | 122 | $ | (44) | $ | 28 | $ | 163 | $ | 425 | ||
Net charge-offs (recoveries) to total loans and leases | 0.00% | 0.01% | 0.02% | -0.01% | 0.00% | 0.02% | 0.07% | |||||||||
Total nonaccrual loans and leases to total loans | ||||||||||||||||
and leases HFI | 0.44% | 0.42% | 0.39% | 0.44% | 0.53% | 0.44% | 0.53% | |||||||||
Total nonperforming assets to total assets | 0.63% | 0.78% | 0.87% | 0.95% | 1.00% | 0.63% | 1.00% | |||||||||
Total loans and leases to total deposits | 81.06% | 80.22% | 81.66% | 78.36% | 75.30% | 81.06% | 75.30% | |||||||||
Total loans and leases to total assets | 71.24% | 69.97% | 70.11% | 68.24% | 64.56% | 71.24% | 64.56% | |||||||||
Loans serviced for others | $ | 371,956 | $ | 370,606 | $ | 292,222 | $ | 293,548 | $ | 297,494 | $ | 371,956 | $ | 297,494 | ||
Reconciliation of Non-GAAP Measures: | ||||||||||||||||
Pre-tax pre-provision operating earnings (non-GAAP): | ||||||||||||||||
Income before taxes (GAAP) | $ | 2,769 | $ | 2,841 | $ | 2,277 | $ | 2,035 | $ | 2,052 | $ | 9,922 | $ | 6,520 | ||
Provision for credit losses | 200 | 220 | 325 | 225 | 325 | 970 | 800 | |||||||||
Pre-tax pre-provision net income | 2,969 | 3,061 | 2,602 | 2,260 | 2,377 | 10,892 | 7,320 | |||||||||
Securities (gains) losses, net | 0 | 0 | (184) | (284) | (463) | (467) | (1,418) | |||||||||
OREO valuations | 140 | 0 | 103 | 7 | 100 | 250 | 195 | |||||||||
OREO (gains) losses, (net) | (80) | (77) | 14 | 12 | (30) | (131) | (40) | |||||||||
Pre-tax pre-provision operating | ||||||||||||||||
earnings (non-GAAP) | $ | 3,029 | $ | 2,984 | $ | 2,535 | $ | 1,995 | $ | 1,984 | $ | 10,544 | $ | 6,057 | ||
Total core non-interest income (non-GAAP): | ||||||||||||||||
Non-interest income (GAAP) | $ | 3,372 | $ | 3,691 | $ | 3,548 | $ | 3,576 | $ | 3,736 | $ | 14,187 | $ | 14,298 | ||
Securities (gains) losses, net | 0 | 0 | (184) | (284) | (463) | (467) | (1,418) | |||||||||
OREO (gains) losses, (net) | (80) | (77) | 14 | 12 | (30) | (131) | (40) | |||||||||
Total core non-interest income (non-GAAP) | $ | 3,292 | $ | 3,614 | $ | 3,378 | $ | 3,304 | $ | 3,243 | $ | 13,589 | $ | 12,840 | ||
Tangible equity (non-GAAP): | ||||||||||||||||
Total equity (GAAP) | $ | 87,184 | $ | 88,294 | $ | 87,327 | $ | 84,179 | $ | 82,171 | $ | 87,184 | $ | 82,171 | ||
Intangible assets (a) | 5,830 | 5,901 | 5,972 | 6,043 | 6,115 | 5,830 | 6,115 | |||||||||
Tangible equity (non-GAAP) | $ | 81,354 | $ | 82,393 | $ | 81,355 | $ | 78,136 | $ | 76,056 | $ | 81,354 | $ | 76,056 | ||
Tangible Equity/Assets (non-GAAP) | 8.21% | 8.36% | 8.46% | 8.31% | 8.04% | 8.21% | 8.04% | |||||||||
Tangible book value per share (non-GAAP) | $ | 8.57 | $ | 8.68 | $ | 8.57 | $ | 8.23 | $ | 8.02 | $ | 8.57 | $ | 8.02 | ||
Return on average tangible common equity (non-GAAP): | ||||||||||||||||
Net income (GAAP) | $ | 1,994 | $ | 1,894 | $ | 1,612 | $ | 1,461 | $ | 1,568 | $ | 6,961 | $ | 4,683 | ||
Amortization of intangibles, net of tax | 51 | 47 | 50 | 51 | 55 | 199 | 206 | |||||||||
Tangible net income available to shareholders (non-GAAP) | $ | 2,045 | $ | 1,941 | $ | 1,662 | $ | 1,512 | $ | 1,623 | $ | 7,160 | $ | 4,889 | ||
Average equity | 88,694 | 88,481 | 85,927 | 84,265 | 82,712 | 86,844 | 81,893 | |||||||||
Average intangible assets (a) | 5,876 | 5,946 | 6,018 | 6,088 | 6,161 | 5,982 | 6,268 | |||||||||
Average tangible common equity (non-GAAP) | $ | 82,818 | $ | 82,535 | $ | 79,909 | $ | 78,177 | $ | 76,551 | $ | 80,862 | $ | 75,625 | ||
Return on average tangible common equity (non-GAAP) | 9.82% | 9.36% | 8.37% | 7.78% | 8.43% | 8.86% | 6.47% | |||||||||
(a) Excludes mortgage servicing rights | ||||||||||||||||
Average Balances – Yield/Cost Analysis | Three Months Ended December 31, | |||||||||||
2016 | 2015 | |||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||
Interest earning assets: | (Dollars in thousands) | |||||||||||
Loans receivable | $ 691,790 | $ 7,999 | 4.54 | % | $ 591,941 | $ 7,005 | 4.65 | % | ||||
Investments and deposits | 230,194 | 1,337 | 2.64 | (1) | 266,311 | 1,564 | 2.63 | (1) | ||||
Total earning assets | 921,984 | 9,336 | 4.07 | (1) | 858,252 | 8,569 | 4.03 | (1) | ||||
Nonearning assets | 70,208 | 72,730 | ||||||||||
Total assets | $ 992,192 | $ 930,982 | ||||||||||
Interest bearing liabilities: | ||||||||||||
Deposits | $ 671,964 | 734 | 0.43 | $ 634,028 | 638 | 0.40 | ||||||
Borrowings | 20,598 | 60 | 1.16 | 31,234 | 63 | 0.81 | ||||||
Junior subordinated debentures | 10,310 | 126 | 4.77 | 10,310 | 140 | 5.32 | ||||||
Total interest bearing liabilities | 702,872 | 920 | 0.52 | 675,572 | 841 | 0.49 | ||||||
Noninterest bearing demand deposits | 193,627 | - | - | 167,063 | - | - | ||||||
Total sources of funds | 896,499 | 920 | 0.41 | 842,635 | 841 | 0.39 | ||||||
Other liabilities | 6,999 | 5,635 | ||||||||||
Stockholders' equity | 88,694 | 82,712 | ||||||||||
Total liabilities and equity | $ 992,192 | $ 930,982 | ||||||||||
Net interest income | $ 8,416 | $ 7,728 | ||||||||||
Interest rate spread (1)(2) | 3.55 | % | 3.54 | % | ||||||||
Net interest margin (1)(3) | 3.68 | % | 3.64 | % | ||||||||
Ratio of earning assets to interest bearing liabilities | 131.17 | % | 127.04 | % | ||||||||
Twelve Months Ended December 31, | ||||||||||||
2016 | 2015 | |||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||
Interest earning assets: | (Dollars in thousands) | |||||||||||
Loans receivable | $ 663,963 | $ 30,748 | 4.58 | % | $ 538,286 | $ 25,840 | 4.75 | % | ||||
Investments and deposits | 225,611 | 5,468 | 2.75 | (1) | 284,355 | 6,611 | 2.61 | (1) | ||||
Total earning assets | 889,574 | 36,216 | 4.11 | (1) | 822,641 | 32,451 | 4.01 | (1) | ||||
Nonearning assets | 72,282 | 75,154 | ||||||||||
Total assets | $ 961,856 | $ 897,795 | ||||||||||
Interest bearing liabilities: | ||||||||||||
Deposits | $ 657,838 | 2,829 | 0.43 | $ 627,052 | 2,368 | 0.38 | ||||||
Borrowings | 23,484 | 248 | 1.05 | 15,761 | 125 | 0.78 | ||||||
Junior subordinated debentures | 10,310 | 534 | 5.10 | 10,310 | 562 | 5.37 | ||||||
Total interest bearing liabilities | 691,632 | 3,611 | 0.52 | 653,123 | 3,055 | 0.47 | ||||||
Noninterest bearing demand deposits | 177,035 | - | - | 157,953 | - | - | ||||||
Total sources of funds | 868,667 | 3,611 | 0.41 | 811,076 | 3,055 | 0.38 | ||||||
Other liabilities | 6,345 | 4,826 | ||||||||||
Stockholders' equity | 86,844 | 81,893 | ||||||||||
Total liabilities and equity | $ 961,856 | $ 897,795 | ||||||||||
Net interest income | $ 32,605 | $ 29,396 | ||||||||||
Interest rate spread (1)(2) | 3.59 | % | 3.54 | % | ||||||||
Net interest margin (1)(3) | 3.71 | % | 3.64 | % | ||||||||
Ratio of earning assets to interest bearing liabilities | 128.62 | % | 125.95 | % | ||||||||
(1) Shown as a tax-adjusted yield. | ||||||||||||
(2) Represents the difference between the average yield on earning assets and the average cost of funds. | ||||||||||||
(3) Represents net interest income divided by average earning assets. | ||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/first-south-bancorp-inc-reports-increased-december-31-2016-quarterly-and-year-end-operating-results-300396661.html
SOURCE First South Bancorp, Inc.
