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| 8-K - FORM 8-K - FIRST M&F CORP/MS | a1q2012earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
April 19, 2012
FOR IMMEDIATE RELEASE
First M&F Earnings Double….Good Story, Getting Better
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported a profit today for the first quarter ended March 31, 2012 of $1.607 million. Net income allocated to common shareholders was $1.139 million or $0.12 basic and diluted earnings per share compared to a profit of $515,000 or $0.06 basic and diluted earnings per share for the first quarter of 2011. Hugh S. Potts, Jr., CEO and Chairman of the Board, commented, “We believe the focus, patience and persistence of the M&F Team are now contributing to greatly improved performance with upside potential still available.”
Net Interest Income
Net interest income was up slightly by 1.88% compared to the first quarter of 2011, with the net interest margin increasing to 3.67% on a tax equivalent basis in the first quarter of 2012 as compared to 3.59% in the first quarter of 2011. The most significant contributor to the increase in net interest income was the increase in net interest spread as deposits continued to be re-priced lower in the continuing low rate environment. Mr. Potts commented, “What was already a tough margin battle has intensified as rates remain low and loan growth, competitively, remains a challenge.”
The net interest margin for the fourth quarter of 2011 was 3.64% as compared to 3.72% for the third quarter of 2011 and 3.75% for the second quarter of 2011. Loans Held for Investment yields decreased to 5.80% in the first quarter of 2012 from 5.92% in the first quarter of 2011. Overall loan yields held steady from the fourth quarter of 2011 to the first quarter. Average total loans were $1.007 billion for the first quarter of 2012 as compared to $1.014 billion for the fourth quarter of 2011 and $1.061 billion during the first quarter of 2011. Loans decreased by $16.845 million in the first quarter of 2012 and by $18.626 million in the fourth quarter of 2011. Deposit costs decreased in the first quarter of 2012 from the fourth quarter of 2011 continuing a trend in declining deposit costs dating back to the fourth quarter of 2007 as costs have reflected the low-rate environment since then. Deposit costs were 0.85% in the first quarter of 2012 as compared to 1.31% in the first quarter of 2011. Deposits grew by $39.045 million, or 2.85% during the first quarter of 2012, primarily from public funds.
Management plans to continue to focus on core deposit growth for 2012 as a more stable funding base and to offset the influence that the low rate environment may have on the net interest margin. Loans as a percentage of assets were 60.95% at March 31, 2012 as compared to 65.40% at March 31, 2011 and 63.52% at December 31, 2011. Loans fell by 6.83% since the first quarter of 2011 while deposits grew by less than 1.00%.
Non-interest Income
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, for the first quarter of 2012 was up by 3.25% compared to the first quarter of 2011, with deposit-related income flat and mortgage income, still a relatively small contributor to non-interest income, up by 59.27%. Insurance agency commissions were down by 7.06%.
A major part of non-interest income is from deposit sources. Deposit revenues, continue to be supported by debit card fee income, which increased by 3.17% in the first quarter of 2012 over 2011.
Including securities gains and impairments, non-interest income was down 5.41% over the year ago quarter as securities gains taken were lower by 56.19%
Non-interest Expenses
Non-interest expenses were lower by 5.57% in the first quarter of 2012 as compared to the first quarter of 2011. Salaries and benefits expense decreased by 1.34% while the major contributor to the overall non-interest expense decrease was the 38.12% fall in foreclosed property expense as credit issues began to culminate in foreclosure and disposal of other real estate and as property values stabilize and new credit issues wane.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the first quarter of 2012 were 0.47% as compared to 0.60% for the same period in 2011. Non-accrual and 90-day past due loans as a percent of total loans were 1.47% at the end of the first quarter of 2012 as compared to 3.58% at the end of the 2011 quarter
The allowance for loan losses as a percentage of loans was 1.64% at March 31, 2012 as compared to 1.62% at March 31, 2011. The provision for loan losses fell to $2.280 million in the first quarter of 2012 from $2.580 million in the first quarter of 2011. Mr. Potts commented, “The two year trend of asset quality improvement adds yet another quarter. Problem loans decline and non-accrual loans, both new and old, decrease.”
Balance Sheet
Total assets at March 31, 2012 were $1.607 billion as compared to $1.569 billion at the end of 2011 and $1.608 billion at March 31, 2011. Total loans held to maturity were $.979 billion compared to $.996 billion at the end of 2011 and $1.051 billion at March 31, 2011. Deposits were $1.411 billion compared to $1.371 billion at the end of 2011 and $1.400 billion at March 31, 2011. Total capital was $111.355 million, while common equity was $93.478 million or $10.20 in book value per share at March 31, 2012.
Conclusion
“Among the many challenges presented by the lingering slack economy, the challenge of loan growth has become a 'front-burner' issue, said Mr. Potts. M&F is without doubt emerging from the effects of the credit cycle with little help from the real estate market and in spite of a general economic malaise.” Potts continued, “Moving to a more normal, a more robust, economic recovery holds great up-side potential for not only M&F but the entire banking sector.”
In conclusion Mr. Potts said, “Because we were so adversely affected by the events of 2008-2009, it could be easy to let the remarkable recovery we've achieved since January, 2010 result in losing sight of the work yet to be done. However, be assured that while the M&F Team may bask, somewhat, in the sunlight of accomplishment, they do so with humble recognition of the remaining clouds on the horizon and shadows of the hills yet to climb. We merely choose to rejoice in it all…accomplishments and challenges as well.”
About First M&F Corporation
First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the mid-south better through the delivery of excellence in financial services to 25 communities in Mississippi, Alabama and Tennessee.
Caution Concerning Forward‑Looking Statements
This document includes certain "forward‑looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.
First M&F Corporation | |||||||||
Condensed Consolidated Statements of Condition (Unaudited) | |||||||||
(In thousands, except share data) | |||||||||
March 31 | December 31 | March 31 | |||||||
2012 | 2011 | 2011 | |||||||
Cash and due from banks | $ | 38,688 | $ | 39,976 | $ | 36,184 | |||
Interest bearing bank balances | 51,900 | 39,391 | 80,408 | ||||||
Federal funds sold | 25,000 | 25,000 | 25,000 | ||||||
Securities available for sale (cost of | |||||||||
$361,199, $315,890 and $294,351) | 365,970 | 320,774 | 296,242 | ||||||
Loans held for sale | 28,684 | 26,073 | 2,586 | ||||||
Loans | 979,495 | 996,340 | 1,051,261 | ||||||
Allowance for loan losses | 16,084 | 14,953 | 17,043 | ||||||
Net loans | 963,411 | 981,387 | 1,034,218 | ||||||
Bank premises and equipment | 37,831 | 37,989 | 40,531 | ||||||
Accrued interest receivable | 6,098 | 6,122 | 6,719 | ||||||
Other real estate | 34,636 | 36,952 | 29,660 | ||||||
Other intangible assets | 4,479 | 4,586 | 4,906 | ||||||
Other assets | 50,445 | 50,401 | 51,046 | ||||||
Total assets | $ | 1,607,142 | $ | 1,568,651 | $ | 1,607,500 | |||
Non-interest bearing deposits | $ | 238,603 | $ | 231,718 | $ | 208,457 | |||
Interest bearing deposits | 1,171,905 | 1,139,745 | 1,191,619 | ||||||
Total deposits | 1,410,508 | 1,371,463 | 1,400,076 | ||||||
Federal funds and repurchase agreements | 3,738 | 4,398 | 14,561 | ||||||
Other borrowings | 41,673 | 43,001 | 48,527 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 868 | 1,023 | 1,367 | ||||||
Other liabilities | 8,072 | 8,242 | 4,362 | ||||||
Total liabilities | 1,495,787 | 1,459,055 | 1,499,821 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 17,877 | 17,564 | 16,673 | ||||||
Common stock, 9,162,721, 9,154,936 and 9,115,770 | |||||||||
shares issued & outstanding | 45,814 | 45,775 | 45,579 | ||||||
Additional paid-in capital | 31,892 | 31,895 | 31,873 | ||||||
Nonvested restricted stock awards | 700 | 674 | 783 | ||||||
Retained earnings | 15,508 | 14,456 | 12,651 | ||||||
Accumulated other comprehensive income (loss) | (436 | ) | (768 | ) | 120 | ||||
Total equity | 111,355 | 109,596 | 107,679 | ||||||
Total liabilities & equity | $ | 1,607,142 | $ | 1,568,651 | $ | 1,607,500 | |||
First M&F Corporation and Subsidiary | ||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||
(In thousands, except share data) | ||||||
Three Months Ended March 31 | ||||||
2012 | 2011 | |||||
Interest and fees on loans | $ | 14,158 | $ | 15,375 | ||
Interest on loans held for sale | 173 | 41 | ||||
Taxable investments | 1,490 | 1,771 | ||||
Tax exempt investments | 318 | 314 | ||||
Federal funds sold | 15 | 16 | ||||
Interest bearing bank balances | 51 | 52 | ||||
Total interest income | 16,205 | 17,569 | ||||
Interest on deposits | 2,513 | 3,847 | ||||
Interest on fed funds and repurchase agreements | 6 | 15 | ||||
Interest on other borrowings | 451 | 524 | ||||
Interest on subordinated debt | 271 | 458 | ||||
Total interest expense | 3,241 | 4,844 | ||||
Net interest income | 12,964 | 12,725 | ||||
Provision for possible loan losses | 2,280 | 2,580 | ||||
Net interest income after loan loss | 10,684 | 10,145 | ||||
Service charges on deposits | 2,457 | 2,458 | ||||
Mortgage banking income | 567 | 356 | ||||
Agency commission income | 829 | 892 | ||||
Fiduciary and brokerage income | 140 | 133 | ||||
Other income | 837 | 839 | ||||
Other-than-temporary impairment on securities, net of | ||||||
$0 and $55 reclassified from other | ||||||
comprehensive income | — | (296 | ) | |||
Gains on AFS securities | 591 | 1,349 | ||||
Total noninterest income | 5,421 | 5,731 | ||||
Salaries and employee benefits | 6,863 | 6,956 | ||||
Net occupancy expense | 908 | 989 | ||||
Equipment expenses | 463 | 465 | ||||
Software and processing expenses | 362 | 399 | ||||
FDIC insurance assessments | 514 | 774 | ||||
Foreclosed property expenses | 1,456 | 2,353 | ||||
Intangible asset amortization and impairment | 107 | 107 | ||||
Other expenses | 3,313 | 2,768 | ||||
Total noninterest expense | 13,986 | 14,811 | ||||
Net income before taxes | 2,119 | 1,065 | ||||
Income tax expense | 512 | 115 | ||||
Net income | $ | 1,607 | $ | 950 | ||
Earnings Per Common Share Calculations: | ||||||
Net income | $ | 1,607 | $ | 950 | ||
Dividends and accretion on preferred stock | (463 | ) | (432 | ) | ||
Net income applicable to common stock | 1,144 | 518 | ||||
Earnings attributable to participating securities | 5 | 3 | ||||
Net income allocated to common shareholders | $ | 1,139 | $ | 515 | ||
Weighted average shares (basic) | 9,156,476 | 9,109,095 | ||||
Weighted average shares (diluted) | 9,156,476 | 9,109,095 | ||||
Basic earnings per share | $ | 0.12 | $ | 0.06 | ||
Diluted earnings per share | $ | 0.12 | $ | 0.06 | ||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
March 31 | December 31 | March 31 | December 31 | |||||||||
2012 | 2011 | 2011 | 2010 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.40 | % | 0.27 | % | 0.24 | % | 0.25 | % | ||||
Return on equity (annualized) (a) | 5.84 | % | 4.00 | % | 3.58 | % | 3.74 | % | ||||
Return on common equity (annualized) (a) | 4.95 | % | 2.81 | % | 2.31 | % | 2.87 | % | ||||
Efficiency ratio (c) | 75.18 | % | 78.47 | % | 79.26 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.67 | % | 3.68 | % | 3.59 | % | 3.43 | % | ||||
Net charge-offs to average loans (annualized) | 0.47 | % | 1.05 | % | 0.60 | % | 1.65 | % | ||||
Nonaccrual loans to total loans | 1.45 | % | 1.68 | % | 3.55 | % | 3.11 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.06 | % | 0.03 | % | 0.09 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
March 31 | December 31 | September 30 | June 30 | |||||||||
2012 | 2011 | 2011 | 2011 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.12 | $ | 0.05 | $ | 0.10 | $ | 0.07 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.20 | 10.05 | 10.23 | 10.19 | ||||||||
Closing stock price | 4.80 | 2.84 | 3.16 | 3.78 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 144,319 | $ | 155,330 | $ | 143,133 | $ | 152,063 | ||||
Non-residential real estate | 568,811 | 574,505 | 603,904 | 621,546 | ||||||||
Residential real estate | 188,891 | 186,815 | 185,564 | 187,932 | ||||||||
Home equity loans | 36,098 | 37,024 | 38,320 | 38,891 | ||||||||
Consumer loans | 41,376 | 42,666 | 44,045 | 44,163 | ||||||||
Total loans | $ | 979,495 | $ | 996,340 | $ | 1,014,966 | $ | 1,044,595 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 238,603 | $ | 231,718 | $ | 222,042 | $ | 243,626 | ||||
NOW deposits | 421,249 | 390,256 | 378,409 | 397,281 | ||||||||
MMDA deposits | 222,016 | 197,849 | 179,138 | 174,127 | ||||||||
Savings deposits | 121,872 | 119,693 | 118,814 | 117,830 | ||||||||
Core certificates of deposit under $100,000 | 213,944 | 227,867 | 250,130 | 255,847 | ||||||||
Core certificates of deposit $100,000 and over | 176,761 | 187,513 | 216,655 | 217,540 | ||||||||
Brokered certificates of deposit under $100,000 | 3,234 | 3,539 | 4,686 | 4,611 | ||||||||
Brokered certificates of deposit $100,000 and over | 12,829 | 13,028 | 13,985 | 13,637 | ||||||||
Total deposits | $ | 1,410,508 | $ | 1,371,463 | $ | 1,383,859 | $ | 1,424,499 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 14,604 | $ | 17,177 | $ | 26,622 | $ | 32,800 | ||||
Other real estate | 34,636 | 36,952 | 32,722 | 30,650 | ||||||||
Investment securities | 646 | 599 | 509 | 693 | ||||||||
Total nonperforming assets | $ | 49,886 | $ | 54,728 | $ | 59,853 | $ | 64,143 | ||||
Accruing loans past due 90 days or more | $ | 245 | $ | 602 | $ | 252 | $ | 784 | ||||
Restructured loans (accruing) | $ | 19,077 | $ | 19,662 | $ | 19,712 | $ | 22,989 | ||||
Total nonaccrual loan to loans | 1.45 | % | 1.68 | % | 2.59 | % | 3.13 | % | ||||
Total nonperforming credit assets to loans and ORE | 4.72 | % | 5.11 | % | 5.60 | % | 5.89 | % | ||||
Total nonperforming assets to assets ratio | 3.10 | % | 3.49 | % | 3.77 | % | 3.95 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 14,953 | $ | 16,111 | $ | 18,805 | $ | 17,043 | ||||
Provision for loan loss | 2,280 | 2,280 | 2,580 | 2,280 | ||||||||
Charge-offs | (2,061 | ) | (4,001 | ) | (5,419 | ) | (1,442 | ) | ||||
Recoveries | 912 | 563 | 145 | 924 | ||||||||
Ending balance | $ | 16,084 | $ | 14,953 | $ | 16,111 | $ | 18,805 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
March 31 | December 31 | September 30 | June 30 | |||||||||
2012 | 2011 | 2011 | 2011 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 16,205 | $ | 16,305 | $ | 17,239 | $ | 17,602 | ||||
Interest expense | 3,241 | 3,662 | 4,014 | 4,331 | ||||||||
Net interest income | 12,964 | 12,643 | 13,225 | 13,271 | ||||||||
Provision for loan losses | 2,280 | 2,280 | 2,580 | 2,280 | ||||||||
Noninterest revenues | 5,421 | 5,912 | 5,219 | 4,712 | ||||||||
Noninterest expenses | 13,986 | 15,077 | 14,143 | 14,303 | ||||||||
Net income before taxes | 2,119 | 1,198 | 1,721 | 1,400 | ||||||||
Income tax expense | 512 | 211 | 391 | 294 | ||||||||
Net income | $ | 1,607 | $ | 987 | $ | 1,330 | $ | 1,106 | ||||
Preferred dividends | (463 | ) | (454 | ) | (448 | ) | (440 | ) | ||||
Net income applicable to common stock | 1,144 | 533 | 882 | 666 | ||||||||
Earnings attributable to participating securities | 5 | 3 | 4 | 5 | ||||||||
Net income allocated to common shareholders | $ | 1,139 | $ | 530 | $ | 878 | $ | 661 | ||||
Tax-equivalent net interest income | $ | 13,181 | $ | 12,866 | $ | 13,449 | $ | 13,495 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,607,013 | $ | 1,564,531 | $ | 1,592,030 | $ | 1,598,871 | ||||
Loans held for investment | 983,800 | 993,869 | 1,028,372 | 1,050,136 | ||||||||
Earning assets | 1,445,332 | 1,401,948 | 1,433,189 | 1,444,677 | ||||||||
Deposits | 1,409,393 | 1,366,628 | 1,390,834 | 1,396,331 | ||||||||
Equity | 110,745 | 110,483 | 110,412 | 108,911 | ||||||||
Common equity | 93,025 | 93,077 | 93,307 | 92,096 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.40 | % | 0.25 | % | 0.33 | % | 0.28 | % | ||||
Return on average equity (annualized) (a) | 5.84 | % | 3.54 | % | 4.78 | % | 4.07 | % | ||||
Return on average common equity (annualized) (a) | 4.95 | % | 2.27 | % | 3.76 | % | 2.90 | % | ||||
Average equity to average assets | 6.89 | % | 7.06 | % | 6.94 | % | 6.81 | % | ||||
Tangible equity to tangible assets (b) | 6.67 | % | 6.71 | % | 6.71 | % | 6.50 | % | ||||
Tangible common equity to tangible assets (b) | 5.55 | % | 5.59 | % | 5.61 | % | 5.46 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.67 | % | 3.64 | % | 3.72 | % | 3.75 | % | ||||
Efficiency ratio (c) | 75.18 | % | 80.29 | % | 75.76 | % | 78.56 | % | ||||
Net charge-offs to average loans (annualized) | 0.47 | % | 1.37 | % | 2.03 | % | 0.20 | % | ||||
Nonaccrual loans to total loans | 1.45 | % | 1.68 | % | 2.59 | % | 3.13 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.06 | % | 0.02 | % | 0.07 | % | ||||
Price to book | 0.47x | 0.28x | 0.31x | 0.37x | ||||||||
Price to earnings | 10.00x | 14.20x | 7.90x | 13.50x | ||||||||
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) | |||||||||
1Q 2012 | $ | 1,607 | $ | 1,144 | $ | 1,139 | $ | 0.12 | ||||
4Q 2011 | 987 | 533 | 530 | 0.05 | ||||||||
3Q 2011 | 1,330 | 882 | 878 | 0.10 | ||||||||
2Q 2011 | 1,106 | 666 | 661 | 0.07 | ||||||||
1Q 2011 | 950 | 518 | 515 | 0.06 | ||||||||
4Q 2010 | 641 | 266 | 267 | 0.03 | ||||||||
3Q 2010 | 1,245 | 13,671 | 13,565 | 1.49 | ||||||||
2Q 2010 | 1,272 | 833 | 826 | 0.09 | ||||||||
1Q 2010 | 853 | 416 | 413 | 0.05 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Ttl. Revenues | Avg. Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
1Q 2012 | $ | 40.5 | 29.14 | % | 1.36 | % | ||||||
4Q 2011 | 39.0 | 31.48 | % | 1.50 | % | |||||||
3Q 2011 | 36.6 | 27.96 | % | 1.30 | % | |||||||
2Q 2011 | 36.6 | 25.88 | % | 1.18 | % | |||||||
1Q 2011 | 37.9 | 30.67 | % | 1.43 | % | |||||||
4Q 2010 | 35.4 | 28.19 | % | 1.25 | % | |||||||
3Q 2010 | 34.9 | 27.42 | % | 1.21 | % | |||||||
2Q 2010 | 35.1 | 29.98 | % | 1.31 | % | |||||||
1Q 2010 | 34.4 | 32.66 | % | 1.39 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Avg. Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
1Q 2012 | 3.50 | % | 75.18 | % | ||||||||
4Q 2011 | 3.82 | % | 80.29 | % | ||||||||
3Q 2011 | 3.52 | % | 75.76 | % | ||||||||
2Q 2011 | 3.59 | % | 78.56 | % | ||||||||
1Q 2011 | 3.70 | % | 79.26 | % | ||||||||
4Q 2010 | 3.69 | % | 83.22 | % | ||||||||
3Q 2010 | 3.35 | % | 75.75 | % | ||||||||
2Q 2010 | 3.35 | % | 76.69 | % | ||||||||
1Q 2010 | 3.32 | % | 78.16 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD March 2012 | QTD March 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 79,212 | 0.26 | % | $ | 93,864 | 0.22 | % | ||
Federal funds sold | 25,000 | 0.25 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 299,622 | 2.00 | % | 249,061 | 2.88 | % | ||||
Tax-exempt investments (amortized cost) | 34,969 | 5.83 | % | 33,939 | 5.98 | % | ||||
Loans held for sale | 22,729 | 3.06 | % | 4,265 | 3.85 | % | ||||
Loans held for investment | 983,800 | 5.80 | % | 1,056,903 | 5.92 | % | ||||
Total earning assets | 1,445,332 | 4.57 | % | 1,463,032 | 4.93 | % | ||||
Non-earning assets | 161,681 | 159,331 | ||||||||
Total average assets | $ | 1,607,013 | $ | 1,622,363 | ||||||
NOW | $ | 419,260 | 0.46 | % | $ | 402,801 | 0.81 | % | ||
MMDA | 226,602 | 0.52 | % | 161,581 | 0.85 | % | ||||
Savings | 120,835 | 0.99 | % | 115,815 | 1.21 | % | ||||
Certificates of Deposit | 417,086 | 1.39 | % | 514,184 | 1.86 | % | ||||
Short-term borrowings | 5,054 | 0.48 | % | 23,917 | 0.25 | % | ||||
Other borrowings | 73,107 | 3.97 | % | 80,261 | 4.97 | % | ||||
Total interest bearing liabilities | 1,261,944 | 1.03 | % | 1,298,559 | 1.51 | % | ||||
Non-interest bearing deposits | 225,610 | 209,352 | ||||||||
Non-interest bearing liabilities | 8,714 | 6,819 | ||||||||
Preferred equity | 17,720 | 16,531 | ||||||||
Common equity | 93,025 | 91,102 | ||||||||
Total average liabilities and equity | $ | 1,607,013 | $ | 1,622,363 | ||||||
Net interest spread | 3.54 | % | 3.42 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.21 | % | ||||||
Effect of leverage | (0.03 | )% | (0.04 | )% | ||||||
Net interest margin, tax-equivalent | 3.67 | % | 3.59 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.61 | % | 3.53 | % | ||||||
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) | ||||