Attached files
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| 8-K - FORM 8-K - FIRST M&F CORP/MS | a4q2012earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
January 25, 2013
FOR IMMEDIATE RELEASE
First M&F Corp. earnings per share up 93%.
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ:FMFC) today reported 2012 net income of $6.985 million as compared to a net income of $4.373 million for 2011, a 59.7% percent increase. Earnings allocated to common shareholders were $4.919 million, or $0.54 basic and diluted earnings per share, compared to earnings of $2.584 million, or $.28 basic and diluted earnings per share for 2011. “Our management team is gratified and proud to announce a 93% improvement in common earnings per share. From virtually every perspective the M&F Team has led the Company to a much improved performance”, said Hugh S. Potts, Jr., Chairman and CEO.
Net income for the quarter ended December 31, 2012 was $1.290 million allocated to common shareholders, or $.14 basic and diluted earnings per share, compared to $.530 million, or $.05 basic and diluted earnings per share for the fourth quarter of 2011.
For the fourth quarter of 2012 the annualized return on assets was 0.46%, while return on common equity was 5.40%. Comparatively, the return on assets for the fourth quarter of 2011 was 0.25%, with a return on common equity of 2.27%. The return on assets for 2012 was 0.44%, while the return on common equity was 5.30%.
Mr. Potts continued, “At the risk of a noticeable repetition, we must report that our credit trends are continuing the improvement began during the depths of the current credit cycle. These trends in credit improvement are foundational to M&F's improved earnings.” At year-end 2012 nonaccrual loans to total loans improved to 0.75% from 1.68% at the end of 2011.
Net Interest Income
Net interest income for the quarter was flat compared to the fourth quarter of 2011, with the net interest margin falling to 3.56% in the fourth quarter of 2012 as compared to 3.64% in the fourth quarter of 2011. The net interest margin for the third quarter of 2012 was 3.73% as compared to 3.72% for the second quarter of 2012 and 3.67% for the first quarter of 2012 as spreads began to narrow late in the year. Loan yields decreased to 5.37% in the fourth quarter of 2012 from 5.74% in the fourth quarter of 2011. Loan yields fell from the third quarter of 2012 to the fourth quarter. Average loans were $1.008 billion for the fourth quarter of 2012 showing virtually no change since the third quarter also averaged $1.007 billion and average loans were $1.014 billion during the fourth quarter of 2011. Loans held for investment fell by $11.854 million in the fourth quarter of 2012 and grew by $4.731 million in the third quarter as loan demand, though somewhat robust, was offset by pay-offs and competitive pressures.
Deposit costs fell in the fourth quarter of 2012 from the third quarter of 2012 and from the fourth quarter of 2011, as deposits were re-priced downward throughout 2012 in the current stable low-rate environment, continuing a trend beginning in the fourth quarter of 2007. Interest-bearing deposit costs were 0.66% in the fourth quarter of 2012 as compared to 1.01% in the fourth quarter of 2011. Deposits grew by $53.201 million during the fourth quarter of 2012. 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 held for investment as a percentage of assets were 60.90% at December 31, 2012 as compared to 63.52% at December 31, 2011 and 63.57% at September 30, 2012.
Non-interest Income
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, for the fourth quarter of 2012 was up by 7.49% compared to the fourth quarter of 2011, with deposit-related income down by 2.08% and mortgage income up 154.69% on higher volumes. For the year, mortgage income was up 191.27%, as the department took advantage of growing refinancing trends and built a wholesale delivery channel to supplement retail efforts. Other income in the year ago quarter had been bolstered by gains realized on the sale of closed branches. Insurance agency commissions were up only 1.25%.
Non-interest income, excluding securities transactions and other-than-temporary impairment on securities, was up 14.58% for 2012 versus 2011. Over half of non-interest income is from deposit sources, which was virtually flat, only down 1.10% year over year. Deposit revenues continue to be supported by debit card fee income, which continue to grow and which increased by 11.17% in the fourth quarter of 2012 over the year-ago quarter, and overdraft fee income, which, however, decreased by 8.59% quarter over quarter.
Non-interest Expenses
Non-interest expenses were lower by 7.72% in the fourth quarter of 2012 as compared to the fourth quarter of 2011. Salaries and benefits for the quarter were lower by 7.42% compared to the year-ago quarter and both Occupancy and Equipment expenses were down as well, mostly reflecting the cost savings effects of Project McKinley. As Other Real Estate assets are disposed of and as the preponderance of properties are raw or subdivided land, and as appraised values somewhat stabilize, carrying costs and write downs trend downward. Quarter over quarter Foreclosed property expense declined 37.86% and year over year by 29.45%. Most of the increase in Other Expenses was due to volume-related mortgage expenses.
The number of full-time equivalent employees for the fourth quarter of 2012 averaged 463 as compared to 469 for the third quarter of 2012 and 482 for the fourth quarter of 2011.
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the fourth quarter of 2012 were 0.46% as compared to 1.37% for the same period in 2011. Non-accrual and 90-day past due loans as a percent of total loans were 0.78% for the last quarter of 2012 as compared to 1.74% at the end of 2011. Annualized net charge-offs as a percentage of average loans for 2012 were 0.61% as compared to 1.05% for 2011. The allowance for loan losses as a percentage of loans was 1.79% at December 31, 2012 as compared to 1.50% at December 31, 2011. The provision for loan losses fell in 2012 from $9.720 million in 2011 to $8.520 million in 2012 as charge-offs, new nonaccruals and new loan impairments all continued to wane.
Balance Sheet
Total assets grew by 2.11% in 2012, to $1.602 billion from $1.569 billion. Total equity grew to $118.443 million, an 8.07% increase from 2011. Total loans held for investment were $.975 billion compared to $.996 billion at the end of 2011. Deposits were $1.403 billion compared to $1.371 billion at the end of 2011. Book value per common share increased to $10.79 per share at the end of 2012, a 7.36% increase from 2011.
Conclusion
Mr. Potts commented, “The heavy clouds and darkness of 2008 and 2009 have lifted as rays of less ominous circumstances break through. On the horizon remain the specter of regulation, international tension and an avalanche of government influence upon a very tenuous economy.” In conclusion, Mr. Potts stated, “Credit quality has led M&F's earnings surge and will continue to contribute in the short and mid-term to improving earnings. Another bright spot has been our mortgage operation as originations, mostly from refinancing, have grown dramatically. We expect overall improved performance to continue in 2013.”
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) | ||||||
December 31 | December 31 | |||||
2012 | 2011 | |||||
Cash and due from banks | $ | 54,811 | $ | 39,976 | ||
Interest bearing bank balances | 94,313 | 39,391 | ||||
Federal funds sold | 10,000 | 25,000 | ||||
Securities available for sale (cost of | ||||||
$341,273 and $315,890) | 348,562 | 320,774 | ||||
Loans held for sale | 21,014 | 26,073 | ||||
Loans | 975,473 | 996,340 | ||||
Allowance for loan losses | 17,492 | 14,953 | ||||
Net loans | 957,981 | 981,387 | ||||
Bank premises and equipment | 37,264 | 37,989 | ||||
Accrued interest receivable | 5,683 | 6,122 | ||||
Other real estate | 25,970 | 36,952 | ||||
Other intangible assets | 4,159 | 4,586 | ||||
Other assets | 41,926 | 50,401 | ||||
Total assets | $ | 1,601,683 | $ | 1,568,651 | ||
Non-interest bearing deposits | $ | 276,295 | $ | 231,718 | ||
Interest bearing deposits | 1,126,380 | 1,139,745 | ||||
Total deposits | 1,402,675 | 1,371,463 | ||||
Federal funds and repurchase agreements | 3,720 | 4,398 | ||||
Other borrowings | 36,007 | 43,001 | ||||
Junior subordinated debt | 30,928 | 30,928 | ||||
Accrued interest payable | 661 | 1,023 | ||||
Other liabilities | 9,249 | 8,242 | ||||
Total liabilities | 1,483,240 | 1,459,055 | ||||
Preferred stock, 30,000 shares issued and outstanding | 18,866 | 17,564 | ||||
Common stock, 9,230,799 and 9,154,936 | ||||||
shares issued & outstanding | 46,154 | 45,775 | ||||
Additional paid-in capital | 32,469 | 31,895 | ||||
Nonvested restricted stock awards | 244 | 674 | ||||
Retained earnings | 19,179 | 14,456 | ||||
Accumulated other comprehensive income (loss) | 1,531 | (768 | ) | |||
Total equity | 118,443 | 109,596 | ||||
Total liabilities & equity | $ | 1,601,683 | $ | 1,568,651 | ||
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 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Interest and fees on loans | $ | 13,409 | $ | 14,482 | $ | 55,005 | $ | 60,201 | ||||
Interest on loans held for sale | 188 | 154 | 767 | 275 | ||||||||
Taxable investments | 1,208 | 1,297 | 5,682 | 6,745 | ||||||||
Tax exempt investments | 330 | 318 | 1,292 | 1,252 | ||||||||
Federal funds sold | 4 | 16 | 30 | 63 | ||||||||
Interest bearing bank balances | 47 | 38 | 146 | 179 | ||||||||
Total interest income | 15,186 | 16,305 | 62,922 | 68,715 | ||||||||
Interest on deposits | 1,849 | 2,897 | 8,627 | 13,501 | ||||||||
Interest on fed funds and repurchase agreements | 5 | 6 | 21 | 36 | ||||||||
Interest on other borrowings | 393 | 467 | 1,704 | 1,979 | ||||||||
Interest on subordinated debt | 298 | 292 | 1,177 | 1,335 | ||||||||
Total interest expense | 2,545 | 3,662 | 11,529 | 16,851 | ||||||||
Net interest income | 12,641 | 12,643 | 51,393 | 51,864 | ||||||||
Provision for possible loan losses | 1,980 | 2,280 | 8,520 | 9,720 | ||||||||
Net interest income after loan loss | 10,661 | 10,363 | 42,873 | 42,144 | ||||||||
Service charges on deposits | 2,586 | 2,641 | 10,180 | 10,293 | ||||||||
Mortgage banking income | 1,574 | 618 | 5,304 | 1,821 | ||||||||
Agency commission income | 808 | 798 | 3,486 | 3,636 | ||||||||
Fiduciary and brokerage income | 170 | 153 | 587 | 584 | ||||||||
Other income | 605 | 1,133 | 2,713 | 3,102 | ||||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$0, $49, $21 and $263 reclassified to/from other | ||||||||||||
comprehensive income | — | (50 | ) | (29 | ) | (631 | ) | |||||
Gains (losses) on AFS securities | (8 | ) | 619 | 557 | 2,769 | |||||||
Total noninterest income | 5,735 | 5,912 | 22,798 | 21,574 | ||||||||
Salaries and employee benefits | 6,387 | 6,899 | 26,887 | 28,469 | ||||||||
Net occupancy expense | 797 | 1,003 | 3,554 | 3,935 | ||||||||
Equipment expenses | 418 | 479 | 1,726 | 1,871 | ||||||||
Software and processing expenses | 366 | 378 | 1,428 | 1,540 | ||||||||
FDIC insurance assessments | 511 | 530 | 1,911 | 2,426 | ||||||||
Foreclosed property expenses | 1,272 | 2,047 | 5,186 | 7,351 | ||||||||
Intangible asset amortization and impairment | 107 | 107 | 427 | 427 | ||||||||
Other expenses | 4,055 | 3,634 | 15,159 | 12,315 | ||||||||
Total noninterest expense | 13,913 | 15,077 | 56,278 | 58,334 | ||||||||
Net income before taxes | 2,483 | 1,198 | 9,393 | 5,384 | ||||||||
Income tax expense | 652 | 211 | 2,408 | 1,011 | ||||||||
Net income | $ | 1,831 | $ | 987 | $ | 6,985 | $ | 4,373 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income | $ | 1,831 | $ | 987 | $ | 6,985 | $ | 4,373 | ||||
Dividends and accretion on preferred stock | (488 | ) | (454 | ) | (1,901 | ) | (1,774 | ) | ||||
Net income applicable to common stock | 1,343 | 533 | 5,084 | 2,599 | ||||||||
Earnings attributable to participating securities | 53 | 3 | 165 | 15 | ||||||||
Net income allocated to common shareholders | $ | 1,290 | $ | 530 | $ | 4,919 | $ | 2,584 | ||||
Weighted average shares (basic) | 9,216,746 | 9,145,108 | 9,181,012 | 9,126,605 | ||||||||
Weighted average shares (diluted) | 9,218,990 | 9,145,108 | 9,182,034 | 9,126,605 | ||||||||
Basic earnings per share | $ | 0.14 | $ | 0.05 | $ | 0.54 | $ | 0.28 | ||||
Diluted earnings per share | $ | 0.14 | $ | 0.05 | $ | 0.54 | $ | 0.28 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | |||||||||||
December 31 | December 31 | |||||||||||
2012 | 2011 | |||||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.44 | % | 0.27 | % | ||||||||
Return on equity (annualized) (a) | 6.12 | % | 4.00 | % | ||||||||
Return on common equity (annualized) (a) | 5.30 | % | 2.81 | % | ||||||||
Efficiency ratio (c) | 74.98 | % | 78.47 | % | ||||||||
Net interest margin (annualized, tax-equivalent) | 3.67 | % | 3.68 | % | ||||||||
Net charge-offs to average loans (annualized) | 0.61 | % | 1.05 | % | ||||||||
Nonaccrual loans to total loans | 0.75 | % | 1.68 | % | ||||||||
90 day accruing loans to total loans | 0.03 | % | 0.06 | % | ||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||
2012 | 2012 | 2012 | 2012 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.12 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.79 | 10.69 | 10.44 | 10.20 | ||||||||
Closing stock price | 6.98 | 7.42 | 5.18 | 4.80 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 153,549 | $ | 155,890 | $ | 147,773 | $ | 144,319 | ||||
Non-residential real estate | 542,860 | 554,475 | 567,184 | 568,811 | ||||||||
Residential real estate | 200,992 | 197,629 | 189,927 | 188,891 | ||||||||
Home equity loans | 37,736 | 37,196 | 36,183 | 36,098 | ||||||||
Consumer loans | 40,336 | 42,137 | 41,529 | 41,376 | ||||||||
Total loans | $ | 975,473 | $ | 987,327 | $ | 982,596 | $ | 979,495 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 276,295 | $ | 233,684 | $ | 236,145 | $ | 238,603 | ||||
NOW deposits | 423,461 | 386,371 | 391,726 | 421,249 | ||||||||
MMDA deposits | 214,091 | 216,620 | 211,447 | 222,016 | ||||||||
Savings deposits | 118,123 | 117,404 | 116,598 | 121,872 | ||||||||
Core certificates of deposit under $100,000 | 188,733 | 201,361 | 208,684 | 213,944 | ||||||||
Core certificates of deposit $100,000 and over | 165,979 | 177,084 | 178,926 | 176,761 | ||||||||
Brokered certificates of deposit under $100,000 | 3,549 | 3,417 | 3,393 | 3,234 | ||||||||
Brokered certificates of deposit $100,000 and over | 12,444 | 13,533 | 14,419 | 12,829 | ||||||||
Total deposits | $ | 1,402,675 | $ | 1,349,474 | $ | 1,361,338 | $ | 1,410,508 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 7,444 | $ | 6,219 | $ | 6,443 | $ | 14,604 | ||||
Other real estate | 25,970 | 28,002 | 31,077 | 34,636 | ||||||||
Investment securities | 733 | 644 | 639 | 646 | ||||||||
Total nonperforming assets | $ | 34,147 | $ | 34,865 | $ | 38,159 | $ | 49,886 | ||||
Accruing loans past due 90 days or more | $ | 321 | $ | 408 | $ | 1,537 | $ | 245 | ||||
Restructured loans (accruing) | $ | 21,800 | $ | 16,784 | $ | 18,372 | $ | 19,077 | ||||
Total nonaccrual loan to loans | 0.75 | % | 0.62 | % | 0.64 | % | 1.45 | % | ||||
Total nonperforming credit assets to loans and ORE | 3.27 | % | 3.29 | % | 3.62 | % | 4.72 | % | ||||
Total nonperforming assets to assets ratio | 2.13 | % | 2.24 | % | 2.44 | % | 3.10 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 16,656 | $ | 15,310 | $ | 16,084 | $ | 14,953 | ||||
Provision for loan loss | 1,980 | 1,980 | 2,280 | 2,280 | ||||||||
Charge-offs | (1,584 | ) | (1,035 | ) | (3,460 | ) | (2,061 | ) | ||||
Recoveries | 440 | 401 | 406 | 912 | ||||||||
Ending balance | $ | 17,492 | $ | 16,656 | $ | 15,310 | $ | 16,084 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||
2012 | 2012 | 2012 | 2012 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 15,186 | $ | 15,625 | $ | 15,906 | $ | 16,205 | ||||
Interest expense | 2,545 | 2,753 | 2,990 | 3,241 | ||||||||
Net interest income | 12,641 | 12,872 | 12,916 | 12,964 | ||||||||
Provision for loan losses | 1,980 | 1,980 | 2,280 | 2,280 | ||||||||
Noninterest revenues | 5,735 | 5,607 | 6,035 | 5,421 | ||||||||
Noninterest expenses | 13,913 | 14,060 | 14,319 | 13,986 | ||||||||
Net income before taxes | 2,483 | 2,439 | 2,352 | 2,119 | ||||||||
Income tax expense | 652 | 645 | 599 | 512 | ||||||||
Net income | $ | 1,831 | $ | 1,794 | $ | 1,753 | $ | 1,607 | ||||
Preferred dividends | (488 | ) | (479 | ) | (471 | ) | (463 | ) | ||||
Net income applicable to common stock | 1,343 | 1,315 | 1,282 | 1,144 | ||||||||
Earnings attributable to participating securities | 53 | 51 | 56 | 5 | ||||||||
Net income allocated to common shareholders | $ | 1,290 | $ | 1,264 | $ | 1,226 | $ | 1,139 | ||||
Tax-equivalent net interest income | $ | 12,859 | $ | 13,088 | $ | 13,134 | $ | 13,181 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,585,467 | $ | 1,546,416 | $ | 1,577,420 | $ | 1,607,013 | ||||
Loans held for investment | 982,894 | 984,282 | 973,545 | 983,800 | ||||||||
Earning assets | 1,436,348 | 1,396,824 | 1,420,370 | 1,445,332 | ||||||||
Deposits | 1,381,667 | 1,343,559 | 1,379,716 | 1,409,393 | ||||||||
Equity | 117,529 | 115,544 | 112,466 | 110,745 | ||||||||
Common equity | 98,837 | 97,186 | 94,430 | 93,025 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.46 | % | 0.46 | % | 0.45 | % | 0.40 | % | ||||
Return on average equity (annualized) (a) | 6.19 | % | 6.18 | % | 6.27 | % | 5.84 | % | ||||
Return on average common equity (annualized) (a) | 5.40 | % | 5.38 | % | 5.46 | % | 4.95 | % | ||||
Average equity to average assets | 7.41 | % | 7.47 | % | 7.13 | % | 6.89 | % | ||||
Tangible equity to tangible assets (b) | 7.15 | % | 7.28 | % | 7.04 | % | 6.67 | % | ||||
Tangible common equity to tangible assets (b) | 5.97 | % | 6.08 | % | 5.87 | % | 5.55 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.56 | % | 3.73 | % | 3.72 | % | 3.67 | % | ||||
Efficiency ratio (c) | 74.83 | % | 75.21 | % | 74.70 | % | 75.18 | % | ||||
Net charge-offs to average loans (annualized) | 0.46 | % | 0.26 | % | 1.26 | % | 0.47 | % | ||||
Nonaccrual loans to total loans | 0.75 | % | 0.62 | % | 0.64 | % | 1.45 | % | ||||
90 day accruing loans to total loans | 0.03 | % | 0.04 | % | 0.15 | % | 0.02 | % | ||||
Price to book | 0.65x | 0.69x | 0.50x | 0.47x | ||||||||
Price to earnings | 12.46x | 13.25x | 9.25x | 10.00x | ||||||||
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 2012 | $ | 1,831 | $ | 1,343 | $ | 1,290 | $ | 0.14 | ||||
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 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
4Q 2012 | $ | 40.2 | 30.85 | % | 1.44 | % | ||||||
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 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
4Q 2012 | 3.49 | % | 74.83 | % | ||||||||
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 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD December 2012 | QTD December 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 80,925 | 0.23 | % | $ | 44,653 | 0.33 | % | ||
Federal funds sold | 5,707 | 0.26 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 303,164 | 1.59 | % | 283,986 | 1.81 | % | ||||
Tax-exempt investments (amortized cost) | 38,464 | 5.45 | % | 33,923 | 5.94 | % | ||||
Loans held for sale | 25,194 | 2.98 | % | 20,517 | 2.98 | % | ||||
Loans held for investment | 982,894 | 5.44 | % | 993,869 | 5.79 | % | ||||
Total earning assets | 1,436,348 | 4.27 | % | 1,401,948 | 4.68 | % | ||||
Non-earning assets | 149,119 | 162,583 | ||||||||
Total average assets | $ | 1,585,467 | $ | 1,564,531 | ||||||
NOW | $ | 392,825 | 0.34 | % | $ | 369,789 | 0.47 | % | ||
MMDA | 220,774 | 0.24 | % | 186,898 | 0.62 | % | ||||
Savings | 118,852 | 0.89 | % | 118,833 | 1.05 | % | ||||
Certificates of Deposit | 383,291 | 1.16 | % | 459,182 | 1.60 | % | ||||
Short-term borrowings | 3,447 | 0.57 | % | 4,809 | 0.53 | % | ||||
Other borrowings | 67,996 | 4.05 | % | 74,431 | 4.04 | % | ||||
Total interest bearing liabilities | 1,187,185 | 0.85 | % | 1,213,942 | 1.20 | % | ||||
Non-interest bearing deposits | 265,925 | 231,926 | ||||||||
Non-interest bearing liabilities | 14,828 | 8,180 | ||||||||
Preferred equity | 18,692 | 17,406 | ||||||||
Common equity | 98,837 | 93,077 | ||||||||
Total average liabilities and equity | $ | 1,585,467 | $ | 1,564,531 | ||||||
Net interest spread | 3.42 | % | 3.48 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.19 | % | ||||||
Effect of leverage | (0.02 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.56 | % | 3.64 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.50 | % | 3.58 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD December 2012 | YTD December 2011 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 54,808 | 0.27 | % | $ | 70,998 | 0.25 | % | ||
Federal funds sold | 11,566 | 0.26 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 314,889 | 1.80 | % | 265,446 | 2.54 | % | ||||
Tax-exempt investments (amortized cost) | 37,004 | 5.57 | % | 33,390 | 5.98 | % | ||||
Loans held for sale | 25,264 | 3.04 | % | 8,566 | 3.21 | % | ||||
Loans held for investment | 981,143 | 5.62 | % | 1,032,137 | 5.85 | % | ||||
Total earning assets | 1,424,674 | 4.48 | % | 1,435,537 | 4.85 | % | ||||
Non-earning assets | 154,333 | 158,747 | ||||||||
Total average assets | $ | 1,579,007 | $ | 1,594,284 | ||||||
NOW | $ | 400,215 | 0.40 | % | $ | 389,052 | 0.63 | % | ||
MMDA | 218,041 | 0.35 | % | 172,978 | 0.72 | % | ||||
Savings | 119,741 | 0.95 | % | 117,686 | 1.12 | % | ||||
Certificates of Deposit | 401,097 | 1.27 | % | 489,199 | 1.73 | % | ||||
Short-term borrowings | 4,017 | 0.53 | % | 10,855 | 0.33 | % | ||||
Other borrowings | 70,818 | 4.07 | % | 76,923 | 4.31 | % | ||||
Total interest bearing liabilities | 1,213,929 | 0.95 | % | 1,256,693 | 1.34 | % | ||||
Non-interest bearing deposits | 239,402 | 220,369 | ||||||||
Non-interest bearing liabilities | 11,592 | 7,852 | ||||||||
Preferred equity | 18,203 | 16,967 | ||||||||
Common equity | 95,881 | 92,403 | ||||||||
Total average liabilities and equity | $ | 1,579,007 | $ | 1,594,284 | ||||||
Net interest spread | 3.53 | % | 3.51 | % | ||||||
Effect of non-interest bearing deposits | 0.16 | % | 0.20 | % | ||||||
Effect of leverage | (0.02 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.67 | % | 3.68 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.02 | % | ||||||
Reported book net interest margin | 3.61 | % | 3.61 | % | ||||||
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) | ||||