Attached files
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8-K - FIRST M&F CORP/MS | v208890_8k.htm |
First
M&F Corp. Investor
Information
|
CONTACT:
|
John
G. Copeland
|
|
EVP
& Chief Financial Officer
|
|
(662)
289-8594
|
January
24, 2011
FOR
IMMEDIATE RELEASE
First
M&F Corp. Reports Improved Earnings and Positive Credit Trends
KOSCIUSKO,
Miss. – First M&F Corp. (NASDAQ:FMFC) today reported 2010 net income of
$4.011 million as compared to a net loss of $59.799 million for
2009. Earnings attributable to common shareholders were $15.071
million, or $1.66 basic and diluted earnings per share, compared to a loss of
$60.655 million, or ($6.69) basic and diluted earnings per share for
2009. Earnings attributable to common shareholders includes a $12.867
million gain on exchange of preferred stock recorded in the third
quarter. Excluding the gain on exchange, common earnings were $2.301
million, or $.25 basic and diluted earnings per share.
Net
income for the quarter ended December 31, 2010 was $.267 million attributable to
common shareholders, or $.03 basic and diluted earnings per share, compared to a
loss of $27.488 million, or ($3.03) basic and diluted earnings per share for the
fourth quarter of 2009.
For the fourth quarter of 2010 the
annualized return on assets was 0.16%, while return on common equity was 1.16%.
Comparatively, the return on assets for the fourth quarter of 2009 was a
negative 6.46%, with a negative return on common equity of 105.37%. The return
on assets for 2010 was 0.25%, while the return on common equity was
2.87%.
“The
positive and encouraging trends begun in the first quarter of 2010 continued
through year end,” said Hugh S. Potts, Jr., Chairman and Chief Executive
Officer. Mr. Potts continued, “Actions taken during 2009 bore fruit
in 2010. Virtually every credit related measure improved in
2010. Losses by charge-offs on loans were reduced from $49 million to
$17 million. Non-accrual loans were reduced proportionally from 4.17%
of loans to 3.11% and absolutely from $44.5 million to $33.1
million. As expected, as non-accrual loans receded, Other Real Estate
increased; however, in 2010, $16 million of ORE was sold at 105% of
book. The inflow of both Non-performing Loans and Other Real Estate
is expected to further abate in 2011.”
Net
Interest Income
Net
interest income was up slightly compared to the fourth quarter of 2009, with the
net interest margin increasing to 3.57% in the fourth quarter of 2010 as
compared to 3.28% in the fourth quarter of 2009. The significant contributor to
the increase in net interest income was the improvement in net interest spreads
stemming from lower deposit costs. The net interest margin for the third quarter
of 2010 was 3.60% as compared to 3.40% for the second quarter of 2010 and 3.16%
for the first quarter of 2010 as the cost of funds trended downward all year.
Loan yields decreased to 5.89% in the fourth quarter of 2010 from 6.04% in the
fourth quarter of 2009. Loan yields were virtually flat from the third quarter
of 2010 to the fourth quarter. Average loans were $1.048 billion for the fourth
quarter of 2010 as compared to $1.052 billion for the third quarter of 2010 and
$1.103 million during the fourth quarter of 2009. Loans grew by $13.133 million
in the fourth quarter of 2010 and by $8.898 million in the third
quarter. Deposit costs fell in the fourth quarter of 2010 from the
third quarter of 2010 and from the fourth quarter of 2009, as deposits were
re-priced downward throughout 2010 in the current stable low-rate
environment. Deposit costs were 1.49% in the fourth quarter of 2010
as compared to 1.87% in the fourth quarter of 2009. Deposits grew by $53.532
million during the fourth quarter of 2010. 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 as a
percentage of assets were 66.10% at December 31, 2010 as compared to 63.64% at
December 31, 2009 and 67.70% at September 30, 2010. With modest growth in the
third and fourth quarters loans at year-end were up just slightly over the prior
year while deposits fell by less than 1.00%.
Non-interest
Income
Non-interest
income, excluding securities transactions and other-than-temporary impairment on
securities, for the fourth quarter of 2010 was down by 8.51% compared to the
fourth quarter of 2009, with deposit-related income down by 10.29% and mortgage
income up 11.14%. Insurance agency commissions were up by almost
1.00%.
Non-interest
income, excluding securities transactions and other-than-temporary impairment on
securities, was down 8.23% for 2010 versus 2009. Over half of
non-interest income is from deposit sources, which was down 6.88% year over
year. Deposit revenues continue to be supported by debit card fee income, which
increased by 9.44% in 2010 over 2009, and overdraft fee income, which, however,
decreased by 12.79% for the year. Commission revenues from traditional insurance
products were down 1.86% year over year.
Non-interest
income includes non-cash other-than-temporary impairment charges of $.403
million in 2010 and $.829 million in 2009 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 excluding goodwill impairments and amortization were down by 19.31% in
the fourth quarter of 2010 as compared to the fourth quarter of
2009. Most of the decrease in expenses was due to lower foreclosed
property expenses as credit quality improved and the pace of new problem credits
and foreclosures slowed. Salaries and benefits for the quarter were virtually
flat compared to the year-ago quarter.
Non-interest
expenses excluding goodwill impairments and amortization fell by 12.25% for 2010
as compared to 2009. Although most of the decrease was due to lower
foreclosed property expenses, salaries and benefits, net occupancy expenses and
other expenses were each down significantly in 2010 as cost savings measures and
branch closure savings were fully realized. The number of average
full-time equivalent employees at the end of 2010 was 496 as compared to 496 at
the end of the third quarter of 2010 and 517 at the end of
2009.
Credit
Quality
Annualized
net loan charge-offs as a percent of average loans for the fourth quarter of
2010 were 2.41% as compared to 8.87% for the same period in 2009. Non-accrual
and 90-day past due loans as a percent of total loans were 3.20% at the end of
2010 as compared to 4.40% at the end of 2009. Annualized net charge-offs as a
percentage of average loans for 2010 were 1.65% as compared to 4.50% for 2009.
The allowance for loan losses as a percentage of loans was 1.50% at December 31,
2010 as compared to 2.25% at December 31, 2009. The provision for loan losses
fell sharply in 2010 from $49.601 million in 2009 to $9.220 million in
2010. The decrease in provisioning year over year reflected the
slowed pace of new credit issues and the prior year significant deterioration in
collateral values on collateral-dependent real estate loans.
Mr. Potts
commented, “Income at the bank, holding company, and subsidiaries improved as
the burden of credit issues receded. Margins improved, loan volume
grew slightly, cost control measures took full effect, and capital grew
slightly, proportionately, and absolutely.” Mr. Potts continued, “Our
course, charted through the collapse of acquisition, construction and
development credit, has proven to be proper. Now we must accelerate
our progress in income growth as credit issues further recede.”
Balance
Sheet
Total
assets fell by 3.55% in 2010, to $1.604 billion from $1.663
billion. Total equity grew to $107.065 million, a 2.33% increase from
2009. Total loans were $1.060 billion compared to $1.058 billion at the end of
2009. Deposits were $1.375 billion compared to $1.388 billion at the end of
2009. Book value per common share increased to $9.96 per share at the
end of 2010, a 19.14% increase from 2009.
Growth
In the
first quarter of 2009 the Company closed one branch in Shelby County,
Tennessee. In the fourth quarter of 2009, the Company closed four
branches, one each in Starkville, Philadelphia and Southaven, Mississippi and
one in Crestview, Florida. In the first quarter of 2010 the Company
closed two branches in Shelby County, Tennessee and one branch in Shelby County,
Alabama. These closures are designed to improve the Company’s
efficiencies and cost structure without exiting any markets.
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
|
|||||||
2010
|
2009
|
|||||||
Cash
and due from banks
|
45,099 | 42,446 | ||||||
Interest
bearing bank balances
|
72,103 | 84,810 | ||||||
Federal
funds sold
|
25,000 | 70,000 | ||||||
Securities
available for sale (cost of
|
||||||||
$274,421
and $280,470)
|
276,929 | 284,550 | ||||||
Loans
held for sale
|
6,242 | 10,266 | ||||||
Loans
|
1,060,146 | 1,058,340 | ||||||
Allowance
for loan losses
|
16,025 | 24,014 | ||||||
Net
loans
|
1,044,121 | 1,034,326 | ||||||
Bank
premises and equipment
|
40,696 | 42,919 | ||||||
Accrued
interest receivable
|
6,380 | 7,598 | ||||||
Other
real estate
|
31,125 | 23,578 | ||||||
Goodwill
|
0 | 0 | ||||||
Other
intangible assets
|
5,013 | 5,439 | ||||||
Other
assets
|
51,256 | 57,036 | ||||||
Total
assets
|
1,603,964 | 1,662,968 | ||||||
Non-interest
bearing deposits
|
212,199 | 228,579 | ||||||
Interest
bearing deposits
|
1,163,213 | 1,159,684 | ||||||
Total
deposits
|
1,375,412 | 1,388,263 | ||||||
Federal
funds and repurchase agreements
|
33,481 | 8,642 | ||||||
Other
borrowings
|
50,416 | 122,510 | ||||||
Junior
subordinated debt
|
30,928 | 30,928 | ||||||
Accrued
interest payable
|
1,470 | 2,933 | ||||||
Other
liabilities
|
5,192 | 5,062 | ||||||
Total
liabilities
|
1,496,899 | 1,558,338 | ||||||
Preferred
stock, 30,000 shares issued and outstanding
|
16,390 | 28,838 | ||||||
Common
stock, 9,106,803 and 9,069,346
|
||||||||
shares
issued & outstanding
|
45,534 | 45,347 | ||||||
Additional
paid-in capital
|
31,884 | 31,926 | ||||||
Nonvested
restricted stock awards
|
784 | 734 | ||||||
Retained
earnings
|
12,224 | (2,595 | ) | |||||
Accumulated
other comprehensive income
|
249 | 379 | ||||||
Total
First M&F Corp equity
|
107,065 | 104,629 | ||||||
Noncontrolling
interests in subsidiaries
|
- | 1 | ||||||
Total
equity
|
107,065 | 104,630 | ||||||
Total
liabilities & equity
|
1,603,964 | 1,662,968 |
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
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest
and fees on loans
|
15,463 | 16,635 | 62,070 | 66,782 | ||||||||||||
Interest
on loans held for sale
|
62 | 86 | 232 | 278 | ||||||||||||
Taxable
investments
|
1,676 | 2,213 | 7,616 | 9,531 | ||||||||||||
Tax
exempt investments
|
353 | 488 | 1,549 | 2,105 | ||||||||||||
Federal
funds sold
|
15 | 34 | 82 | 95 | ||||||||||||
Interest
bearing bank balances
|
34 | 30 | 143 | 42 | ||||||||||||
Total
interest income
|
17,603 | 19,486 | 71,692 | 78,833 | ||||||||||||
Interest
on deposits
|
4,177 | 5,452 | 18,809 | 23,701 | ||||||||||||
Interest
on fed funds and repurchase agreements
|
17 | 14 | 66 | 97 | ||||||||||||
Interest
on other borrowings
|
536 | 1,329 | 3,024 | 5,449 | ||||||||||||
Interest
on subordinated debt
|
505 | 504 | 1,992 | 1,992 | ||||||||||||
Total
interest expense
|
5,235 | 7,299 | 23,891 | 31,239 | ||||||||||||
Net
interest income
|
12,368 | 12,187 | 47,801 | 47,594 | ||||||||||||
Provision
for possible loan losses
|
2,280 | 15,761 | 9,220 | 49,601 | ||||||||||||
Net
interest income after loan loss
|
10,088 | (3,574 | ) | 38,581 | (2,007 | ) | ||||||||||
Service
charges on deposits
|
2,546 | 2,838 | 10,221 | 10,976 | ||||||||||||
Mortgage
banking income
|
439 | 395 | 1,581 | 1,823 | ||||||||||||
Agency
commission income
|
864 | 856 | 3,809 | 3,881 | ||||||||||||
Fiduciary
and brokerage income
|
120 | 117 | 526 | 489 | ||||||||||||
Other
income
|
448 | 622 | 2,532 | 3,174 | ||||||||||||
Other-than-temporary
impairment on securities, net of $0, $1,490, $32 and $2,696
recognized in other comprehensive income
|
- | (417 | ) | (403 | ) | (829 | ) | |||||||||
Gains
on AFS securities
|
539 | 14 | 2,255 | 456 | ||||||||||||
Total
noninterest income
|
4,956 | 4,425 | 20,521 | 19,970 | ||||||||||||
Salaries
and employee benefits
|
6,732 | 6,748 | 27,303 | 28,314 | ||||||||||||
Net
occupancy expense
|
968 | 1,306 | 3,937 | 4,614 | ||||||||||||
Equipment
expenses
|
523 | 682 | 2,382 | 2,877 | ||||||||||||
Software
and processing expenses
|
400 | 440 | 1,627 | 1,898 | ||||||||||||
FDIC
insurance assessments
|
768 | 711 | 3,261 | 3,276 | ||||||||||||
Foreclosed
property expenses
|
1,905 | 4,493 | 2,946 | 7,283 | ||||||||||||
Goodwill
impairment
|
- | 16,772 | - | 32,572 | ||||||||||||
Intangible
asset amortization and impairment
|
107 | 107 | 427 | 1,688 | ||||||||||||
Other
expenses
|
3,225 | 3,617 | 12,607 | 13,350 | ||||||||||||
Total
noninterest expense
|
14,628 | 34,876 | 54,490 | 95,872 | ||||||||||||
Net
income (loss) before taxes
|
416 | (34,025 | ) | 4,612 | (77,909 | ) | ||||||||||
Income
tax expense (benefit)
|
(226 | ) | (6,715 | ) | 602 | (18,104 | ) | |||||||||
Net
income (loss)
|
642 | (27,310 | ) | 4,010 | (59,805 | ) | ||||||||||
Net
income (loss) attributable to noncontrolling interests
|
1 | 1 | (1 | ) | (6 | ) | ||||||||||
Net
income (loss) attributable to First M&F Corp
|
641 | (27,311 | ) | 4,011 | (59,799 | ) | ||||||||||
Earnings
Per Common Share Calculations:
|
||||||||||||||||
Net
income (loss) attributable to First M&F Corp
|
641 | (27,311 | ) | 4,011 | (59,799 | ) | ||||||||||
Dividends
and accretion on preferred stock
|
(375 | ) | (436 | ) | (1,692 | ) | (1,464 | ) | ||||||||
Gain
on exchange of preferred stock (Note 1)
|
0 | - | 12,867 | - | ||||||||||||
Net
income (loss) applicable to common stock
|
266 | (27,747 | ) | 15,186 | (61,263 | ) | ||||||||||
Earnings
(loss) attributable to participating securities
|
(1 | ) | (259 | ) | 115 | (608 | ) | |||||||||
Net
income (loss) allocated to common shareholders
|
267 | (27,488 | ) | 15,071 | (60,655 | ) | ||||||||||
Weighted
average shares (basic)
|
9,099,883 | 9,069,346 | 9,081,687 | 9,066,880 | ||||||||||||
Weighted
average shares (diluted)
|
9,099,883 | 9,069,346 | 9,081,687 | 9,066,880 | ||||||||||||
Basic
earnings (loss) per share
|
$ | 0.03 | $ | (3.03 | ) | $ | 1.66 | $ | (6.69 | ) | ||||||
Diluted
earnings (loss) per share
|
$ | 0.03 | $ | (3.03 | ) | $ | 1.66 | $ | (6.69 | ) |
First
M&F Corporation
Financial
Highlights
YTD Ended
|
YTD Ended
|
|||||||||||||||
December 31
|
December 31
|
|||||||||||||||
2010
|
2009
|
|||||||||||||||
Performance
Ratios:
|
||||||||||||||||
Return
on assets (annualized)
|
0.25 | % | -3.63 | % | ||||||||||||
Return
on equity (annualized) (a)
|
3.74 | % | -42.97 | % | ||||||||||||
Return
on common equity (annualized) (a)
|
2.87 | % | -53.73 | % | ||||||||||||
Efficiency
ratio
|
78.47 | % | 89.87 | % | ||||||||||||
Net
interest margin (annualized, tax-equivalent)
|
3.43 | % | 3.29 | % | ||||||||||||
Net
charge-offs to average loans (annualized)
|
1.65 | % | 4.50 | % | ||||||||||||
Nonaccrual
loans to total loans
|
3.11 | % | 4.17 | % | ||||||||||||
90
day accruing loans to total loans
|
0.09 | % | 0.23 | % | ||||||||||||
QTD Ended
|
QTD Ended
|
QTD Ended
|
QTD Ended
|
|||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
|||||||||||||
2010
|
2010
|
2010
|
2010
|
|||||||||||||
Per
Common Share (diluted):
|
||||||||||||||||
Net
income (loss) (including $12,867 gain)
|
0.03 | 1.49 | 0.09 | 0.05 | ||||||||||||
Net
income (loss) (excluding $12,867 gain)
|
0.03 | 0.08 | 0.09 | 0.05 | ||||||||||||
Cash
dividends paid
|
0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||
Book
value
|
9.96 | 10.18 | 8.68 | 8.37 | ||||||||||||
Closing
stock price
|
3.74 | 3.38 | 3.86 | 3.15 | ||||||||||||
Loan
Portfolio Composition: (in thousands)
|
||||||||||||||||
Commercial,
financial and agricultural
|
125,614 | 130,596 | 130,657 | 123,476 | ||||||||||||
Non-residential
real estate
|
646,731 | 626,747 | 615,571 | 626,025 | ||||||||||||
Residential
real estate
|
195,184 | 196,299 | 196,547 | 195,862 | ||||||||||||
Home
equity loans
|
40,305 | 40,523 | 41,254 | 43,043 | ||||||||||||
Consumer
loans
|
44,308 | 45,124 | 44,998 | 44,788 | ||||||||||||
Other
loans
|
8,004 | 7,724 | 9,088 | 9,235 | ||||||||||||
Total
loans
|
1,060,146 | 1,047,013 | 1,038,115 | 1,042,429 | ||||||||||||
Deposit
Composition: (in thousands)
|
||||||||||||||||
Noninterest-bearing
deposits
|
227,759 | 220,556 | 227,825 | 217,683 | ||||||||||||
NOW
deposits
|
348,650 | 307,533 | 312,828 | 331,066 | ||||||||||||
MMDA
deposits
|
166,454 | 162,955 | 145,798 | 141,203 | ||||||||||||
Savings
deposits
|
114,769 | 117,175 | 114,426 | 113,367 | ||||||||||||
Core
certificates of deposit under $100,000
|
268,272 | 267,350 | 278,177 | 289,525 | ||||||||||||
Core
certificates of deposit $100,000 and over
|
234,500 | 228,543 | 245,182 | 262,335 | ||||||||||||
Brokered
certificates of deposit under $100,000
|
3,074 | 3,005 | 5,322 | 6,033 | ||||||||||||
Brokered
certificates of deposit $100,000 and over
|
11,934 | 14,762 | 14,253 | 12,786 | ||||||||||||
Total
deposits
|
1,375,412 | 1,321,879 | 1,343,811 | 1,373,998 | ||||||||||||
Nonperforming
Assets: (in thousands)
|
||||||||||||||||
Nonaccrual
loans
|
33,127 | 37,082 | 35,603 | 42,148 | ||||||||||||
Other
real estate
|
31,125 | 38,631 | 31,231 | 31,460 | ||||||||||||
Investment
securities
|
698 | 596 | 660 | 795 | ||||||||||||
Total
nonperforming assets
|
64,950 | 76,309 | 67,494 | 74,403 | ||||||||||||
Accruing
loans past due 90 days or more
|
951 | 858 | 1,307 | 2,092 | ||||||||||||
Restructured
loans (accruing)
|
18,052 | 18,518 | 15,374 | 6,759 | ||||||||||||
Total
nonaccrual loan to loans
|
3.11 | % | 3.53 | % | 3.41 | % | 4.01 | % | ||||||||
Total
nonperforming credit assets to loans and ORE
|
5.85 | % | 6.95 | % | 6.22 | % | 6.80 | % | ||||||||
Total
nonperforming assets to assets ratio
|
4.05 | % | 4.93 | % | 4.30 | % | 4.58 | % | ||||||||
Allowance
For Loan Loss Activity: (in thousands)
|
||||||||||||||||
Beginning
balance
|
20,077 | 18,301 | 21,115 | 24,014 | ||||||||||||
Provision
for loan loss
|
2,280 | 2,280 | 2,380 | 2,280 | ||||||||||||
Charge-offs
|
(6,536 | ) | (1,485 | ) | (5,706 | ) | (5,928 | ) | ||||||||
Recoveries
|
204 | 981 | 512 | 749 | ||||||||||||
Ending
balance
|
16,025 | 20,077 | 18,301 | 21,115 |
First
M&F Corporation
|
||||||||||||||||
Financial
Highlights
|
||||||||||||||||
QTD Ended
|
QTD Ended
|
QTD Ended
|
QTD Ended
|
|||||||||||||
December 31
|
September 30
|
June 30
|
March 31
|
|||||||||||||
2010
|
2010
|
2010
|
2010
|
|||||||||||||
Condensed
Income Statements: (in thousands)
|
||||||||||||||||
Interest
income
|
17,603 | 17,855 | 18,222 | 18,012 | ||||||||||||
Interest
expense
|
5,235 | 5,561 | 6,324 | 6,771 | ||||||||||||
Net
interest income
|
12,368 | 12,294 | 11,898 | 11,241 | ||||||||||||
Provision
for loan losses
|
2,280 | 2,280 | 2,380 | 2,280 | ||||||||||||
Noninterest
revenues
|
4,956 | 4,746 | 5,216 | 5,603 | ||||||||||||
Noninterest
expenses
|
14,628 | 13,111 | 13,342 | 13,409 | ||||||||||||
Net
income (loss) before taxes
|
416 | 1,649 | 1,392 | 1,155 | ||||||||||||
Income
tax expense (benefit)
|
(226 | ) | 407 | 120 | 301 | |||||||||||
Noncontrolling
interest
|
1 | (3 | ) | 0 | 1 | |||||||||||
Net
income (loss)
|
641 | 1,245 | 1,272 | 853 | ||||||||||||
Preferred
dividends
|
(375 | ) | (441 | ) | (439 | ) | (437 | ) | ||||||||
Gain
on exchange of preferred stock
|
- | 12,867 | - | - | ||||||||||||
Net
income (loss) applicable to common stock
|
266 | 13,671 | 833 | 416 | ||||||||||||
Earnings
(loss) attributable to participating securities
|
(1 | ) | 106 | 7 | 3 | |||||||||||
Net
income (loss) allocated to common shareholders
|
267 | 13,565 | 826 | 413 | ||||||||||||
Tax-equivalent
net interest income
|
12,624 | 12,563 | 12,180 | 11,554 | ||||||||||||
Selected
Average Balances: (in thousands)
|
||||||||||||||||
Assets
|
1,574,426 | 1,553,415 | 1,598,285 | 1,638,761 | ||||||||||||
Loans
held for investment
|
1,041,453 | 1,046,242 | 1,038,148 | 1,056,177 | ||||||||||||
Earning
assets
|
1,404,766 | 1,384,289 | 1,438,166 | 1,481,335 | ||||||||||||
Deposits
|
1,341,738 | 1,331,624 | 1,362,362 | 1,379,510 | ||||||||||||
Equity
|
109,110 | 108,535 | 105,381 | 105,584 | ||||||||||||
Common
equity
|
90,612 | 79,547 | 76,582 | 76,715 | ||||||||||||
Selected
Ratios:
|
||||||||||||||||
Return
on average assets (annualized)
|
0.16 | % | 0.32 | % | 0.32 | % | 0.21 | % | ||||||||
Return
on average equity (annualized) (a)
|
2.33 | % | 4.55 | % | 4.84 | % | 3.28 | % | ||||||||
Return
on average common equity (annualized) (a)
|
1.16 | % | 4.01 | % | 4.37 | % | 2.20 | % | ||||||||
Average
equity to average assets
|
6.93 | % | 6.99 | % | 6.59 | % | 6.44 | % | ||||||||
Tangible
equity to tangible assets (b)
|
6.38 | % | 6.72 | % | 6.56 | % | 6.15 | % | ||||||||
Tangible
common equity to tangible assets (b)
|
5.36 | % | 5.67 | % | 4.70 | % | 4.36 | % | ||||||||
Net
interest margin (annualized, tax-equivalent)
|
3.57 | % | 3.60 | % | 3.40 | % | 3.16 | % | ||||||||
Efficiency
ratio
|
83.22 | % | 75.75 | % | 76.69 | % | 78.16 | % | ||||||||
Net
charge-offs to average loans (annualized)
|
2.41 | % | 0.19 | % | 2.01 | % | 1.99 | % | ||||||||
Nonaccrual
loans to total loans
|
3.11 | % | 3.53 | % | 3.41 | % | 4.01 | % | ||||||||
90
day accruing loans to total loans
|
0.09 | % | 0.08 | % | 0.17 | % | 0.20 | % | ||||||||
Price
to book (x)
|
0.38 | 0.33 | 0.44 | 0.38 | ||||||||||||
Price
to earnings (x)
|
31.17 | 10.56 | 10.72 | 15.75 |
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
2010
|
642 | 266 | 267 | 0.03 | ||||||||||||
3Q
2010
|
1,242 | 13,671 | 13,565 | 1.49 | ||||||||||||
2Q
2010
|
1,272 | 833 | 826 | 0.09 | ||||||||||||
1Q
2010
|
854 | 416 | 413 | 0.05 | ||||||||||||
4Q
2009
|
(27,311 | ) | (27,747 | ) | (27,488 | ) | (3.03 | ) | ||||||||
3Q
2009
|
(136 | ) | (571 | ) | (580 | ) | (0.06 | ) | ||||||||
2Q
2009
|
(5,111 | ) | (5,550 | ) | (5,498 | ) | (0.61 | ) | ||||||||
1Q
2009
|
(27,241 | ) | (27,395 | ) | (27,089 | ) | (2.99 | ) | ||||||||
4Q
2008
|
(4,357 | ) | (4,357 | ) | (4,300 | ) | (0.47 | ) | ||||||||
3Q
2008
|
2,210 | 2,210 | 2,183 | 0.24 | ||||||||||||
2Q
2008
|
(466 | ) | (466 | ) | (458 | ) | (0.05 | ) | ||||||||
Revenue
Statistics:
|
Non-interest
|
Non-interest
|
||||||||||||||
Revenues
|
Revenues to
|
Revenues to
|
||||||||||||||
Per FTE
|
Ttl. Revenues
|
Avg. Assets
|
||||||||||||||
(thousands)
|
(percent)
|
(percent)
|
||||||||||||||
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 | % | |||||||||||
3Q
2009
|
34.4 | 29.81 | % | 1.30 | % | |||||||||||
2Q
2009
|
31.2 | 29.92 | % | 1.24 | % | |||||||||||
1Q
2009
|
32.3 | 29.81 | % | 1.28 | % | |||||||||||
4Q
2008
|
32.8 | 26.90 | % | 1.19 | % | |||||||||||
3Q
2008
|
34.4 | 29.16 | % | 1.37 | % | |||||||||||
2Q
2008
|
33.4 | 28.13 | % | 1.31 | % | |||||||||||
Expense
Statistics:
|
Non-interest
|
|||||||||||||||
Expense to
|
Efficiency
|
|||||||||||||||
Avg. Assets
|
Ratio
|
|||||||||||||||
(percent)
|
(percent) (c)
|
|||||||||||||||
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 | % | ||||||||||||
3Q
2009
|
3.41 | % | 78.34 | % | ||||||||||||
2Q
2009
|
3.94 | % | 95.10 | % | ||||||||||||
1Q
2009
|
7.65 | % | 80.41 | % | ||||||||||||
4Q
2008
|
3.52 | % | 79.29 | % | ||||||||||||
3Q
2008
|
3.29 | % | 69.93 | % | ||||||||||||
2Q
2008
|
3.34 | % | 71.85 | % |
First
M&F Corporation
Average
Balance Sheets/Yields and Costs (tax-equivalent)
(In
thousands with yields and costs annualized)
QTD December 2010
|
QTD December 2009
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Balance
|
Yield/Cost
|
Balance
|
Yield/Cost
|
|||||||||||||
Interest
bearing bank balances
|
65,302 | 0.21 | % | 59,852 | 0.20 | % | ||||||||||
Federal
funds sold
|
25,000 | 0.25 | % | 65,479 | 0.20 | % | ||||||||||
Taxable
investments (amortized cost)
|
228,935 | 2.91 | % | 237,842 | 3.69 | % | ||||||||||
Tax-exempt
investments (amortized cost)
|
37,525 | 5.95 | % | 52,275 | 5.91 | % | ||||||||||
Loans
held for sale
|
6,551 | 3.75 | % | 9,229 | 3.71 | % | ||||||||||
Loans
held for investment
|
1,041,453 | 5.91 | % | 1,093,694 | 6.06 | % | ||||||||||
Total
earning assets
|
1,404,766 | 5.04 | % | 1,518,371 | 5.18 | % | ||||||||||
Non-earning
assets
|
169,660 | 158,133 | ||||||||||||||
Total
average assets
|
1,574,426 | 1,676,504 | ||||||||||||||
NOW
|
319,309 | 1.02 | % | 296,806 | 1.18 | % | ||||||||||
MMDA
|
167,154 | 1.14 | % | 169,439 | 1.14 | % | ||||||||||
Savings
|
115,806 | 1.26 | % | 112,482 | 1.36 | % | ||||||||||
Certificates
of Deposit
|
512,012 | 1.95 | % | 576,285 | 2.54 | % | ||||||||||
Short-term
borrowings
|
34,194 | 0.20 | % | 10,036 | 0.56 | % | ||||||||||
Other
borrowings
|
80,946 | 5.10 | % | 163,422 | 4.45 | % | ||||||||||
Total
interest bearing liabilities
|
1,229,421 | 1.69 | % | 1,328,470 | 2.18 | % | ||||||||||
Non-interest
bearing deposits
|
227,457 | 206,037 | ||||||||||||||
Non-interest
bearing liabilities
|
8,438 | 8,757 | ||||||||||||||
Preferred
equity
|
18,498 | 28,768 | ||||||||||||||
Common
equity
|
90,612 | 104,472 | ||||||||||||||
Total
average liabilities and equity
|
1,574,426 | 1,676,504 | ||||||||||||||
Net
interest spread
|
3.35 | % | 3.00 | % | ||||||||||||
Effect
of non-interest bearing deposits
|
0.26 | % | 0.29 | % | ||||||||||||
Effect
of leverage
|
-0.04 | % | -0.01 | % | ||||||||||||
Net
interest margin, tax-equivalent
|
3.57 | % | 3.28 | % | ||||||||||||
Less
tax equivalent adjustment:
|
||||||||||||||||
Investments
|
0.06 | % | 0.08 | % | ||||||||||||
Loans
|
0.02 | % | 0.02 | % | ||||||||||||
Reported
book net interest margin
|
3.49 | % | 3.18 | % |
First
M&F Corporation
Average
Balance Sheets/Yields and Costs (tax-equivalent)
(In
thousands with yields and costs annualized)
YTD December 2010
|
YTD December 2009
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Balance
|
Yield/Cost
|
Balance
|
Yield/Cost
|
|||||||||||||
Interest
bearing bank balances
|
60,894 | 0.24 | % | 25,151 | 0.17 | % | ||||||||||
Federal
funds sold
|
35,642 | 0.23 | % | 43,871 | 0.22 | % | ||||||||||
Taxable
investments (amortized cost)
|
236,046 | 3.23 | % | 234,942 | 4.06 | % | ||||||||||
Tax-exempt
investments (amortized cost)
|
41,347 | 5.97 | % | 56,021 | 5.99 | % | ||||||||||
Loans
held for sale
|
7,416 | 3.13 | % | 8,120 | 3.42 | % | ||||||||||
Loans
held for investment
|
1,045,467 | 5.96 | % | 1,122,308 | 5.97 | % | ||||||||||
Total
earning assets
|
1,426,812 | 5.11 | % | 1,490,413 | 5.39 | % | ||||||||||
Non-earning
assets
|
164,130 | 154,747 | ||||||||||||||
Total
average assets
|
1,590,942 | 1,645,160 | ||||||||||||||
NOW
|
321,036 | 1.05 | % | 280,484 | 1.28 | % | ||||||||||
MMDA
|
151,974 | 1.12 | % | 167,425 | 1.34 | % | ||||||||||
Savings
|
114,358 | 1.28 | % | 113,397 | 1.48 | % | ||||||||||
Certificates
of Deposit
|
544,192 | 2.26 | % | 569,623 | 2.84 | % | ||||||||||
Short-term
borrowings
|
19,112 | 0.35 | % | 10,448 | 0.93 | % | ||||||||||
Other
borrowings
|
102,112 | 4.91 | % | 165,548 | 4.49 | % | ||||||||||
Total
interest bearing liabilities
|
1,252,784 | 1.91 | % | 1,306,925 | 2.39 | % | ||||||||||
Non-interest
bearing deposits
|
222,083 | 190,541 | ||||||||||||||
Non-interest
bearing liabilities
|
8,909 | 8,538 | ||||||||||||||
Preferred
equity
|
26,300 | 25,141 | ||||||||||||||
Common
equity
|
80,866 | 114,015 | ||||||||||||||
Total
average liabilities and equity
|
1,590,942 | 1,645,160 | ||||||||||||||
Net
interest spread
|
3.20 | % | 3.00 | % | ||||||||||||
Effect
of non-interest bearing deposits
|
0.29 | % | 0.30 | % | ||||||||||||
Effect
of leverage
|
-0.06 | % | -0.01 | % | ||||||||||||
Net
interest margin, tax-equivalent
|
3.43 | % | 3.29 | % | ||||||||||||
Less
tax equivalent adjustment:
|
||||||||||||||||
Investments
|
0.06 | % | 0.08 | % | ||||||||||||
Loans
|
0.02 | % | 0.02 | % | ||||||||||||
Reported
book net interest margin
|
3.35 | % | 3.19 | % |
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:
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.