Attached files
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| 8-K - FORM 8-K - FIRST M&F CORP/MS | a3q2012earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
October 19, 2012
FOR IMMEDIATE RELEASE
Upward Earnings and Asset Quality trends continue for First M&F.
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today a net profit for the quarter ended September 30, 2012 of $1.794 million compared to $1.330 million at September 30, 2011. Net income for the quarter allocated to common shareholders was $1.264 million or $0.14 basic and diluted earnings per share, compared to September 30, 2011 net income of $.878 million and $.10 per share. Common net income for the quarter ended September 30, 2012 was $1.315 million or $0.14 per share versus the year-ago quarter common net income of $.882 million or $.10 basic and diluted earnings per share. Second quarter of 2012 earnings allocated to common shareholders were $1.226 million, or $.14 basic and diluted earnings per share.
Hugh Potts, Jr., Chairman and CEO commented, “Earnings per share in this third quarter are up 40% over the year ago quarter, with year over year earnings per share up 74%. Increased mortgage revenue has been a bright spot as well as lower credit costs. Our focus and persistence over the last several quarters are bearing the fruit of greatly improved credit metrics with our stock value responding very positively to the trends we've demonstrated.”
Net Interest Income
Reported net interest income was down 2.67% compared to the third quarter of 2011, although the net interest margin increased slightly to 3.73% on a tax equivalent basis in the third quarter of 2012 as compared to 3.72% in the third quarter of 2011. The significant contributor to the stability in the net interest margin year over year is the improvement, though slight, in spreads, primarily due to lower cost of funds. The net interest margin for the second quarter of 2012 was 3.72% as compared to 3.67% for the first quarter of 2012 and 3.64% for the fourth quarter of 2011. Loan yields fell to 5.48% in the third quarter of 2012 from 5.81% in the third quarter of 2011. Loan yields decreased from the second quarter of 2012 to the third quarter as well as the Company strove to increase loan volumes in the face of continued tepid demand. Average loans were $1.007 billion for the third quarter of 2012 as compared to $1.004 billion for the second quarter of 2012 and $1.035 billion during the third quarter of 2011. Loans held for investment did grow by $4.7 million in the third quarter of 2012 and by $3.1 million in the second quarter.
Deposit costs decreased in the third quarter of 2012 from the second quarter of 2012 and from the third quarter of 2011, in response to the continuing low rate environment. Deposit costs were .73% in the third quarter of 2012 as compared to 1.10% in the third quarter of 2011. Deposits fell by $11.9 million during the third quarter of 2012 consistent with historic seasonal fluctuations and have fallen $34.4 million since the third quarter of 2011. Management plans to continue to focus on relationship-driven deposits as a stable source of funding. Mr. Potts commented, “With interest rates low and the Fed targeting low rates for the foreseeable future, as well as a lackluster economy, the pressure on the net interest margin of all banks is great and mounting. The ability to hold spreads up by re-pricing funding sources is waning. As NIM issues persist, increasing efficiencies and overhead discipline will play more of a role.”
Loans held for investment as a percentage of assets were 63.6% at September 30, 2012 as compared to 64.0% at September 30, 2011 and 63.5% at December 31, 2011. Loans held for investment fell by 2.72% since the third quarter of 2011 while deposits fell by 2.48%.
Non-interest Income
Non-interest income, excluding securities transactions and impairment of investments, for the third quarter of 2012 improved by 14.12% compared to the third quarter of 2011, with most of the increase attributable to higher mortgage banking income. Deposit-related income, the single largest non-interest income category, was down 4.85%, largely due to lower overdraft fee income which fell by 12.79%. Debit card fee income was up 11.11%. Insurance agency commissions were virtually flat quarter over quarter.
Non-interest Expenses
Non-interest expenses were also virtually flat in the third quarter of 2012 as compared to the third quarter of 2011. Drops in Salaries and Benefits as well as Occupancy, Equipment and Foreclosed property expenses were largely offset by higher mortgage expenses from higher mortgage volumes. Mr. Potts commented, “We have initiated several cost savings and efficiency projects during this credit cycle designed to position the bank to better deal with the continuing low-growth economy. The positive overhead effects of those initiatives and the improvements in our credit issues are being seen in 2012.”
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the third quarter of 2012 were .26% as compared to 2.03% for the same period in 2011. Net charge-offs totaled $.634 million for the quarter versus $5.274 million a year ago and $3.054 million in the second quarter of 2012. Non-accrual and 90-day past due loans as a percent of total loans were .66% at the end of the third quarter of 2012 as compared to 2.61% at the end of the 2011 quarter. The allowance for loan losses as a percentage of loans was 1.69% at September 30, 2012 as compared to 1.59% at September 30, 2011. The provision for loan losses fell to $1.980 million in the third quarter of 2012 from $2.580 million in the third quarter of 2011. Mr. Potts commented, “As noted last quarter, virtually every credit trend we measure continues to move in a positive direction. Our improving credit quality is beginning to positively impact earnings in the reduction of provision expense, foreclosed property expenses and even FDIC premiums.”
Balance Sheet
Total assets at September 30, 2012 were $1.553 billion as compared to $1.569 billion at the end of 2011 and $1.587 billion at September 30, 2011. Total loans held for investment were $.987 billion compared to $.996 billion at the end of 2011 and $1.015 billion at September 30, 2011. Deposits were $1.349 billion compared to $1.371 billion at the end of 2011 and $1.384 billion at September 30, 2011. Total capital was $117.004 million or $10.69 in book value per common share at September 30, 2012. Further commenting, Mr. Potts said, “Increasing earnings are contributing to a consistent growth in our capital. Our strategy of non-dilutive capital building and balance sheet strengthening through credit resolution is progressing quarter by quarter.”
In closing, Mr. Potts said, “From the first quarter of 2010 through the third quarter of 2012, the recovery of First M&F has been noteworthy in its magnitude, consistency and results. From every perspective, much value has been restored. The trends have been validated by consistency over the period but the full restoration of performance, quality and value has not yet been attained. We believe that value follows quality. The progress, both real and significant, spurs us on to further improvement.”
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 26 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) | |||||||||
September 30 | December 31 | September 30 | |||||||
2012 | 2011 | 2011 | |||||||
Cash and due from banks | $ | 41,605 | $ | 39,976 | $ | 42,545 | |||
Interest bearing bank balances | 42,777 | 39,391 | 66,026 | ||||||
Federal funds sold | — | 25,000 | 25,000 | ||||||
Securities available for sale (cost of | |||||||||
$345,957, $315,890 and $301,274) | 354,188 | 320,774 | 307,167 | ||||||
Loans held for sale | 23,548 | 26,073 | 11,676 | ||||||
Loans | 987,327 | 996,340 | 1,014,966 | ||||||
Allowance for loan losses | 16,656 | 14,953 | 16,111 | ||||||
Net loans | 970,671 | 981,387 | 998,855 | ||||||
Bank premises and equipment | 37,429 | 37,989 | 40,382 | ||||||
Accrued interest receivable | 6,123 | 6,122 | 5,915 | ||||||
Other real estate | 28,002 | 36,952 | 32,722 | ||||||
Other intangible assets | 4,266 | 4,586 | 4,693 | ||||||
Other assets | 44,568 | 50,401 | 51,886 | ||||||
Total assets | $ | 1,553,177 | $ | 1,568,651 | $ | 1,586,867 | |||
Non-interest bearing deposits | $ | 233,684 | $ | 231,718 | $ | 222,042 | |||
Interest bearing deposits | 1,115,790 | 1,139,745 | 1,161,817 | ||||||
Total deposits | 1,349,474 | 1,371,463 | 1,383,859 | ||||||
Federal funds and repurchase agreements | 5,225 | 4,398 | 8,374 | ||||||
Other borrowings | 38,984 | 43,001 | 44,315 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 806 | 1,023 | 1,237 | ||||||
Other liabilities | 10,756 | 8,242 | 7,374 | ||||||
Total liabilities | 1,436,173 | 1,459,055 | 1,476,087 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 18,528 | 17,564 | 17,260 | ||||||
Common stock, 9,215,092, 9,154,936 and 9,142,717 | |||||||||
shares issued & outstanding | 46,075 | 45,775 | 45,714 | ||||||
Additional paid-in capital | 32,350 | 31,895 | 31,917 | ||||||
Nonvested restricted stock awards | 304 | 674 | 647 | ||||||
Retained earnings | 17,923 | 14,456 | 14,016 | ||||||
Accumulated other comprehensive income (loss) | 1,824 | (768 | ) | 1,226 | |||||
Total equity | 117,004 | 109,596 | 110,780 | ||||||
Total liabilities & equity | $ | 1,553,177 | $ | 1,568,651 | $ | 1,586,867 | |||
First M&F Corporation and Subsidiary | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Interest and fees on loans | $ | 13,697 | $ | 15,063 | $ | 41,596 | $ | 45,719 | ||||
Interest on loans held for sale | 162 | 53 | 579 | 121 | ||||||||
Taxable investments | 1,421 | 1,746 | 4,474 | 5,448 | ||||||||
Tax exempt investments | 325 | 318 | 962 | 934 | ||||||||
Federal funds sold | — | 16 | 26 | 47 | ||||||||
Interest bearing bank balances | 20 | 43 | 99 | 141 | ||||||||
Total interest income | 15,625 | 17,239 | 47,736 | 52,410 | ||||||||
Interest on deposits | 2,032 | 3,234 | 6,778 | 10,604 | ||||||||
Interest on fed funds and repurchase agreements | 5 | 8 | 16 | 30 | ||||||||
Interest on other borrowings | 423 | 479 | 1,311 | 1,512 | ||||||||
Interest on subordinated debt | 293 | 293 | 879 | 1,043 | ||||||||
Total interest expense | 2,753 | 4,014 | 8,984 | 13,189 | ||||||||
Net interest income | 12,872 | 13,225 | 38,752 | 39,221 | ||||||||
Provision for possible loan losses | 1,980 | 2,580 | 6,540 | 7,440 | ||||||||
Net interest income after loan loss | 10,892 | 10,645 | 32,212 | 31,781 | ||||||||
Service charges on deposits | 2,589 | 2,721 | 7,594 | 7,652 | ||||||||
Mortgage banking income | 1,357 | 524 | 3,730 | 1,203 | ||||||||
Agency commission income | 1,001 | 1,010 | 2,678 | 2,838 | ||||||||
Fiduciary and brokerage income | 114 | 146 | 417 | 431 | ||||||||
Other income | 598 | 558 | 2,108 | 1,969 | ||||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$17, $71, $21 and $214 reclassified to/from other | ||||||||||||
comprehensive income | (25 | ) | (200 | ) | (29 | ) | (581 | ) | ||||
Gains (losses) on AFS securities | (27 | ) | 460 | 565 | 2,150 | |||||||
Total noninterest income | 5,607 | 5,219 | 17,063 | 15,662 | ||||||||
Salaries and employee benefits | 6,900 | 7,457 | 20,500 | 21,570 | ||||||||
Net occupancy expense | 917 | 992 | 2,757 | 2,932 | ||||||||
Equipment expenses | 422 | 476 | 1,308 | 1,392 | ||||||||
Software and processing expenses | 354 | 368 | 1,062 | 1,162 | ||||||||
FDIC insurance assessments | 333 | 545 | 1,400 | 1,896 | ||||||||
Foreclosed property expenses | 1,176 | 1,483 | 3,914 | 5,304 | ||||||||
Intangible asset amortization and impairment | 107 | 106 | 320 | 320 | ||||||||
Other expenses | 3,851 | 2,716 | 11,104 | 8,681 | ||||||||
Total noninterest expense | 14,060 | 14,143 | 42,365 | 43,257 | ||||||||
Net income before taxes | 2,439 | 1,721 | 6,910 | 4,186 | ||||||||
Income tax expense | 645 | 391 | 1,756 | 800 | ||||||||
Net income | $ | 1,794 | $ | 1,330 | $ | 5,154 | $ | 3,386 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income | $ | 1,794 | $ | 1,330 | $ | 5,154 | $ | 3,386 | ||||
Dividends and accretion on preferred stock | (479 | ) | (448 | ) | (1,413 | ) | (1,320 | ) | ||||
Net income applicable to common stock | 1,315 | 882 | 3,741 | 2,066 | ||||||||
Earnings attributable to participating securities | 51 | 4 | 112 | 12 | ||||||||
Net income allocated to common shareholders | $ | 1,264 | $ | 878 | $ | 3,629 | $ | 2,054 | ||||
Weighted average shares (basic) | 9,185,803 | 9,133,481 | 9,169,013 | 9,120,370 | ||||||||
Weighted average shares (diluted) | 9,187,397 | 9,133,481 | 9,169,013 | 9,120,370 | ||||||||
Basic earnings per share | $ | 0.14 | $ | 0.10 | $ | 0.40 | $ | 0.23 | ||||
Diluted earnings per share | $ | 0.14 | $ | 0.10 | $ | 0.40 | $ | 0.23 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
September 30 | December 31 | September 30 | December 31 | |||||||||
2012 | 2011 | 2011 | 2010 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.44 | % | 0.27 | % | 0.28 | % | 0.25 | % | ||||
Return on equity (annualized) (a) | 6.10 | % | 4.00 | % | 4.15 | % | 3.74 | % | ||||
Return on common equity (annualized) (a) | 5.27 | % | 2.81 | % | 3.00 | % | 2.87 | % | ||||
Efficiency ratio (c) | 75.03 | % | 78.47 | % | 77.85 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.70 | % | 3.68 | % | 3.69 | % | 3.43 | % | ||||
Net charge-offs to average loans (annualized) | 0.66 | % | 1.05 | % | 0.94 | % | 1.65 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 1.68 | % | 2.59 | % | 3.11 | % | ||||
90 day accruing loans to total loans | 0.04 | % | 0.06 | % | 0.02 | % | 0.09 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
September 30 | June 30 | March 31 | December 31 | |||||||||
2012 | 2012 | 2012 | 2011 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.14 | $ | 0.14 | $ | 0.12 | $ | 0.05 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.69 | 10.44 | 10.20 | 10.05 | ||||||||
Closing stock price | 7.42 | 5.18 | 4.80 | 2.84 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 155,890 | $ | 147,773 | $ | 144,319 | $ | 155,330 | ||||
Non-residential real estate | 554,475 | 567,184 | 568,811 | 574,505 | ||||||||
Residential real estate | 197,629 | 189,927 | 188,891 | 186,815 | ||||||||
Home equity loans | 37,196 | 36,183 | 36,098 | 37,024 | ||||||||
Consumer loans | 42,137 | 41,529 | 41,376 | 42,666 | ||||||||
Total loans | $ | 987,327 | $ | 982,596 | $ | 979,495 | $ | 996,340 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 233,684 | $ | 236,145 | $ | 238,603 | $ | 231,718 | ||||
NOW deposits | 386,371 | 391,726 | 421,249 | 390,256 | ||||||||
MMDA deposits | 216,620 | 211,447 | 222,016 | 197,849 | ||||||||
Savings deposits | 117,404 | 116,598 | 121,872 | 119,693 | ||||||||
Core certificates of deposit under $100,000 | 201,361 | 208,684 | 213,944 | 227,867 | ||||||||
Core certificates of deposit $100,000 and over | 177,084 | 178,926 | 176,761 | 187,513 | ||||||||
Brokered certificates of deposit under $100,000 | 3,417 | 3,393 | 3,234 | 3,539 | ||||||||
Brokered certificates of deposit $100,000 and over | 13,533 | 14,419 | 12,829 | 13,028 | ||||||||
Total deposits | $ | 1,349,474 | $ | 1,361,338 | $ | 1,410,508 | $ | 1,371,463 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 6,219 | $ | 6,443 | $ | 14,604 | $ | 17,177 | ||||
Other real estate | 28,002 | 31,077 | 34,636 | 36,952 | ||||||||
Investment securities | 644 | 639 | 646 | 599 | ||||||||
Total nonperforming assets | $ | 34,865 | $ | 38,159 | $ | 49,886 | $ | 54,728 | ||||
Accruing loans past due 90 days or more | $ | 408 | $ | 1,537 | $ | 245 | $ | 602 | ||||
Restructured loans (accruing) | $ | 16,784 | $ | 18,372 | $ | 19,077 | $ | 19,662 | ||||
Total nonaccrual loan to loans | 0.62 | % | 0.64 | % | 1.45 | % | 1.68 | % | ||||
Total nonperforming credit assets to loans and ORE | 3.29 | % | 3.62 | % | 4.72 | % | 5.11 | % | ||||
Total nonperforming assets to assets ratio | 2.24 | % | 2.44 | % | 3.10 | % | 3.49 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 15,310 | $ | 16,084 | $ | 14,953 | $ | 16,111 | ||||
Provision for loan loss | 1,980 | 2,280 | 2,280 | 2,280 | ||||||||
Charge-offs | (1,035 | ) | (3,460 | ) | (2,061 | ) | (4,001 | ) | ||||
Recoveries | 401 | 406 | 912 | 563 | ||||||||
Ending balance | $ | 16,656 | $ | 15,310 | $ | 16,084 | $ | 14,953 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
September 30 | June 30 | March 31 | December 31 | |||||||||
2012 | 2012 | 2012 | 2011 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 15,625 | $ | 15,906 | $ | 16,205 | $ | 16,305 | ||||
Interest expense | 2,753 | 2,990 | 3,241 | 3,662 | ||||||||
Net interest income | 12,872 | 12,916 | 12,964 | 12,643 | ||||||||
Provision for loan losses | 1,980 | 2,280 | 2,280 | 2,280 | ||||||||
Noninterest revenues | 5,607 | 6,035 | 5,421 | 5,912 | ||||||||
Noninterest expenses | 14,060 | 14,319 | 13,986 | 15,077 | ||||||||
Net income before taxes | 2,439 | 2,352 | 2,119 | 1,198 | ||||||||
Income tax expense | 645 | 599 | 512 | 211 | ||||||||
Net income | $ | 1,794 | $ | 1,753 | $ | 1,607 | $ | 987 | ||||
Preferred dividends | (479 | ) | (471 | ) | (463 | ) | (454 | ) | ||||
Net income applicable to common stock | 1,315 | 1,282 | 1,144 | 533 | ||||||||
Earnings attributable to participating securities | 51 | 56 | 5 | 3 | ||||||||
Net income allocated to common shareholders | $ | 1,264 | $ | 1,226 | $ | 1,139 | $ | 530 | ||||
Tax-equivalent net interest income | $ | 13,088 | $ | 13,134 | $ | 13,181 | $ | 12,865 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,546,416 | $ | 1,577,420 | $ | 1,607,013 | $ | 1,564,531 | ||||
Loans held for investment | 984,282 | 973,545 | 983,800 | 993,869 | ||||||||
Earning assets | 1,396,824 | 1,420,370 | 1,445,332 | 1,401,948 | ||||||||
Deposits | 1,343,559 | 1,379,716 | 1,409,393 | 1,366,628 | ||||||||
Equity | 115,544 | 112,466 | 110,745 | 110,483 | ||||||||
Common equity | 97,186 | 94,430 | 93,025 | 93,077 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.46 | % | 0.45 | % | 0.40 | % | 0.25 | % | ||||
Return on average equity (annualized) (a) | 6.18 | % | 6.27 | % | 5.84 | % | 3.54 | % | ||||
Return on average common equity (annualized) (a) | 5.38 | % | 5.46 | % | 4.95 | % | 2.27 | % | ||||
Average equity to average assets | 7.47 | % | 7.13 | % | 6.89 | % | 7.06 | % | ||||
Tangible equity to tangible assets (b) | 7.28 | % | 7.04 | % | 6.67 | % | 6.71 | % | ||||
Tangible common equity to tangible assets (b) | 6.08 | % | 5.87 | % | 5.55 | % | 5.59 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.73 | % | 3.72 | % | 3.67 | % | 3.64 | % | ||||
Efficiency ratio (c) | 75.21 | % | 74.70 | % | 75.18 | % | 80.29 | % | ||||
Net charge-offs to average loans (annualized) | 0.26 | % | 1.26 | % | 0.47 | % | 1.37 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 0.64 | % | 1.45 | % | 1.68 | % | ||||
90 day accruing loans to total loans | 0.04 | % | 0.15 | % | 0.02 | % | 0.06 | % | ||||
Price to book | 0.69x | 0.50x | 0.47x | 0.28x | ||||||||
Price to earnings | 13.25x | 9.25x | 10.00x | 14.20x | ||||||||
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) | |||||||||
3Q 2012 | $ | 1,794 | $ | 1,315 | $ | 1,264 | $ | 0.14 | ||||
2Q 2012 | 1,753 | 1,282 | 1,226 | 0.14 | ||||||||
1Q 2012 | 1,607 | 1,144 | 1,139 | 0.12 | ||||||||
4Q 2011 | 987 | 533 | 530 | 0.05 | ||||||||
3Q 2011 | 1,330 | 882 | 878 | 0.10 | ||||||||
2Q 2011 | 1,106 | 666 | 661 | 0.07 | ||||||||
1Q 2011 | 950 | 518 | 515 | 0.06 | ||||||||
4Q 2010 | 641 | 266 | 267 | 0.03 | ||||||||
3Q 2010 | 1,245 | 13,671 | 13,565 | 1.49 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
3Q 2012 | $ | 39.9 | 29.99 | % | 1.44 | % | ||||||
2Q 2012 | 41.1 | 31.48 | % | 1.54 | % | |||||||
1Q 2012 | 40.5 | 29.14 | % | 1.36 | % | |||||||
4Q 2011 | 39.0 | 31.48 | % | 1.50 | % | |||||||
3Q 2011 | 36.6 | 27.96 | % | 1.30 | % | |||||||
2Q 2011 | 36.6 | 25.88 | % | 1.18 | % | |||||||
1Q 2011 | 37.9 | 30.67 | % | 1.43 | % | |||||||
4Q 2010 | 35.4 | 28.19 | % | 1.25 | % | |||||||
3Q 2010 | 34.9 | 27.42 | % | 1.21 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
3Q 2012 | 3.62 | % | 75.21 | % | ||||||||
2Q 2012 | 3.65 | % | 74.70 | % | ||||||||
1Q 2012 | 3.50 | % | 75.18 | % | ||||||||
4Q 2011 | 3.82 | % | 80.29 | % | ||||||||
3Q 2011 | 3.52 | % | 75.76 | % | ||||||||
2Q 2011 | 3.59 | % | 78.56 | % | ||||||||
1Q 2011 | 3.70 | % | 79.26 | % | ||||||||
4Q 2010 | 3.69 | % | 83.22 | % | ||||||||
3Q 2010 | 3.35 | % | 75.75 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD September 2012 | QTD September 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 28,177 | 0.29 | % | $ | 74,683 | 0.23 | % | ||
Federal funds sold | 660 | 0.31 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 323,015 | 1.75 | % | 265,438 | 2.61 | % | ||||
Tax-exempt investments (amortized cost) | 37,945 | 5.44 | % | 33,294 | 6.04 | % | ||||
Loans held for sale | 22,745 | 2.83 | % | 6,402 | 3.27 | % | ||||
Loans held for investment | 984,282 | 5.54 | % | 1,028,372 | 5.82 | % | ||||
Total earning assets | 1,396,824 | 4.51 | % | 1,433,189 | 4.83 | % | ||||
Non-earning assets | 149,592 | 158,841 | ||||||||
Total average assets | $ | 1,546,416 | $ | 1,592,030 | ||||||
NOW | $ | 384,075 | 0.38 | % | $ | 383,104 | 0.51 | % | ||
MMDA | 207,344 | 0.27 | % | 175,471 | 0.65 | % | ||||
Savings | 117,534 | 0.96 | % | 118,273 | 1.09 | % | ||||
Certificates of Deposit | 401,500 | 1.23 | % | 490,297 | 1.72 | % | ||||
Short-term borrowings | 4,594 | 0.49 | % | 6,319 | 0.48 | % | ||||
Other borrowings | 70,430 | 4.04 | % | 75,641 | 4.05 | % | ||||
Total interest bearing liabilities | 1,185,477 | 0.92 | % | 1,249,105 | 1.27 | % | ||||
Non-interest bearing deposits | 233,107 | 223,689 | ||||||||
Non-interest bearing liabilities | 12,288 | 8,824 | ||||||||
Preferred equity | 18,358 | 17,105 | ||||||||
Common equity | 97,186 | 93,307 | ||||||||
Total average liabilities and equity | $ | 1,546,416 | $ | 1,592,030 | ||||||
Net interest spread | 3.59 | % | 3.56 | % | ||||||
Effect of non-interest bearing deposits | 0.15 | % | 0.19 | % | ||||||
Effect of leverage | (0.01 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.73 | % | 3.72 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.67 | % | 3.66 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD September 2012 | YTD September 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 46,038 | 0.29 | % | $ | 79,876 | 0.24 | % | ||
Federal funds sold | 13,534 | 0.26 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 318,825 | 1.87 | % | 259,198 | 2.81 | % | ||||
Tax-exempt investments (amortized cost) | 36,513 | 5.61 | % | 33,211 | 6.00 | % | ||||
Loans held for sale | 25,288 | 3.06 | % | 4,539 | 3.55 | % | ||||
Loans held for investment | 980,556 | 5.68 | % | 1,045,033 | 5.86 | % | ||||
Total earning assets | 1,420,754 | 4.55 | % | 1,446,857 | 4.91 | % | ||||
Non-earning assets | 156,084 | 157,453 | ||||||||
Total average assets | $ | 1,576,838 | $ | 1,604,310 | ||||||
NOW | $ | 402,695 | 0.43 | % | $ | 395,544 | 0.68 | % | ||
MMDA | 217,124 | 0.39 | % | 168,287 | 0.75 | % | ||||
Savings | 120,040 | 0.97 | % | 117,299 | 1.14 | % | ||||
Certificates of Deposit | 407,076 | 1.31 | % | 499,313 | 1.78 | % | ||||
Short-term borrowings | 4,209 | 0.52 | % | 12,893 | 0.31 | % | ||||
Other borrowings | 71,765 | 4.08 | % | 77,764 | 4.39 | % | ||||
Total interest bearing liabilities | 1,222,909 | 0.98 | % | 1,271,100 | 1.39 | % | ||||
Non-interest bearing deposits | 230,496 | 216,475 | ||||||||
Non-interest bearing liabilities | 10,505 | 7,740 | ||||||||
Preferred equity | 18,039 | 16,819 | ||||||||
Common equity | 94,889 | 92,176 | ||||||||
Total average liabilities and equity | $ | 1,576,838 | $ | 1,604,310 | ||||||
Net interest spread | 3.57 | % | 3.52 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.20 | % | ||||||
Effect of leverage | (0.03 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.70 | % | 3.69 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.02 | % | ||||||
Reported book net interest margin | 3.64 | % | 3.62 | % | ||||||
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) | ||||