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| 8-K - 8-K - FIRST M&F CORP/MS | a1q2013earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
April 18, 2013
FOR IMMEDIATE RELEASE
Credit Quality drives quarterly earnings improvement for First M&F
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported a profit today for the first quarter ended March 31, 2013 of $2.598 million. Net income allocated to common shareholders was $2.020 million or $0.22 basic and diluted earnings per share compared to a profit of $1.139 million or $0.12 basic and diluted earnings per share for the first quarter of 2012. Hugh S. Potts, Jr., CEO and Chairman of the Board, commented, “This quarter is reflective of the established trends of previous quarters and the current state of the economy.” Continuing further Potts said, “That is, our improving asset quality metrics, a trend started many quarters ago, and the stabilization of real estate values, has allowed meaningful reductions in credit-related expenses and the current profitable quarter.”
Net Interest Income
Net interest income was down by 5.69% compared to the first quarter of 2012, with the net interest margin falling to 3.53% on a tax equivalent basis in the first quarter of 2013 as compared to 3.67% in the first quarter of 2012. The most significant contributor to the decrease in net interest income was the erosion in net interest spreads as the opportunities to re-price deposits waned even as earning asset yields continued downward. Mr. Potts commented, “Also reflective of current economic realities is the compression of the net interest margin arising from continued low rates, diminishing spreads and trends toward flat or modest loan growth.”
The net interest margin for the fourth quarter of 2012 was 3.56% as compared to 3.73% for the third quarter of 2012 and 3.72% for the second quarter of 2012. Loans Held for Investment yields decreased to 5.28% in the first quarter of 2013 from 5.80% in the first quarter of 2012. Overall loan yields fell also from the fourth quarter of 2012 to the first quarter. Average total loans were $990.968 million for the first quarter of 2013 as compared to $1.008 billion for the fourth quarter of 2012 and $1.007 billion during the first quarter of 2012. Loans Held for Investment increased by $12.184 million in the first quarter of 2013 but fell by $11.854 million in the fourth quarter of 2012. Deposit costs decreased in the first quarter of 2013 from the fourth quarter of 2012, 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 0.55% in the first quarter of 2013 as compared to 0.85% in the first quarter of 2012. Deposits fell by $49.900 million, or 3.56% during the first quarter of 2013, primarily from one large depositor. Loans Held for Investment as a percentage of assets were 63.70% at March 31, 2013 as compared to 60.95% at March 31, 2012 and 60.90% at December 31, 2012. Loans grew by less than 1.00% since the first quarter of 2012 while deposits fell by 4.09%.
Non-interest Income
Non-interest income, excluding securities transactions, for the first quarter of 2013 increased by 17.72% compared to the first quarter of 2012, with deposit-related income down 3.50% and mortgage income, bolstered by a somewhat improving housing market and refinancings, up 127.69%. Insurance agency commissions were down slightly, by 1.09%. Mr. Potts commented, “Mortgage volumes and revenues have been a bright spot in the last few quarters. M&F Bank was successful in gearing up to take advantage of the opportunities presented.”
Non-interest Expenses
Non-interest expenses were lower by 7.49% in the first quarter of 2013 as compared to the first quarter of 2012. Salaries and benefits expense decreased by 7.30%, mostly due to lower medical benefits costs, while the major contributor to the overall non-interest expense decrease was the 59.62% fall in foreclosed property expense as credit issues began to dissipate, as property values continued to stabilize and as new credit issues continued to wane. “M&F continues to manage its portfolio of Other Real Estate downward,” said Mr. Potts, “as we're still dealing with the residual aftermath of the real estate collapse.”
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the first quarter of 2013 were 0.21% as compared to 0.47% for the same period in 2012. Non-accrual and 90-day past due loans as a percent of total loans were 0.75% at the end of the first quarter of 2013 as compared to 1.47% at the end of the 2012 quarter.
The allowance for loan losses as a percentage of loans was 1.85% at March 31, 2013 as compared to 1.64% at March 31, 2012. The provision for loan losses fell to $1.280 million in the first quarter of 2013 from $2.280 million in the first quarter of 2012. Mr. Potts commented, “The trend of decreasing credit-related expenses, primarily through lower provisions for loan losses, is the result of quarters and years of credit remediation and recovery by M&F associates. This gratifying pattern of improvement and contribution to earnings, though, will soon run its course and the Company will have to look to profitable asset growth and increased operating efficiencies to spur long-term earnings growth.”
Balance Sheet
Total assets at March 31, 2013 were $1.551 billion as compared to $1.602 billion at the end of 2012 and $1.607 billion at March 31, 2012. Total Loans Held for Investment were $987.657 million compared to $975.473 million at the end of 2012 and $979.495 million at March 31, 2012. Deposits were $1.353 billion compared to $1.403 billion at the end of 2012 and $1.411 billion at March 31, 2012. Total capital was $120.771 million, while common equity was $101.558 million, or $11.00 in book value per share, at March 31, 2013.
Conclusion
Looking forward, Mr. Potts said, “The challenges ahead for First M&F are common to the banking sector as a whole: profitable growth in a low rate environment complicated by a still struggling economy, modest loan demand and narrowing spreads. The potential merger with Renasant, announced in February, should open up greater growth markets and opportunities with higher efficiencies, creating improved shareholder value. M&F associates look forward to the challenge and the change.” In conclusion, Mr. Potts said, “While we await various approvals from regulators and shareholders, we have a patient, thankful and optimistic comfort in the Providential orchestration of the future of M&F, Renasant and the U.S.A. A thorough discussion of the merger will be forthcoming for shareholder enlightenment and decision. Meanwhile, M&F associates are committed to serving well, as always.”
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) | |||||||||
March 31 | December 31 | March 31 | |||||||
2013 | 2012 | 2012 | |||||||
Cash and due from banks | $ | 32,543 | $ | 54,811 | $ | 38,688 | |||
Interest bearing bank balances | 31,590 | 94,313 | 51,900 | ||||||
Federal funds sold | 10,000 | 10,000 | 25,000 | ||||||
Securities available for sale (cost of | |||||||||
$370,679, $341,273 and $361,199) | 377,051 | 348,562 | 365,970 | ||||||
Loans held for sale | 17,573 | 21,014 | 28,684 | ||||||
Loans | 987,657 | 975,473 | 979,495 | ||||||
Allowance for loan losses | 18,269 | 17,492 | 16,084 | ||||||
Net loans | 969,388 | 957,981 | 963,411 | ||||||
Bank premises and equipment | 36,871 | 37,264 | 37,831 | ||||||
Accrued interest receivable | 5,863 | 5,683 | 6,098 | ||||||
Other real estate | 24,820 | 25,970 | 34,636 | ||||||
Other intangible assets | 4,053 | 4,159 | 4,479 | ||||||
Other assets | 40,768 | 41,926 | 50,445 | ||||||
Total assets | $ | 1,550,520 | $ | 1,601,683 | $ | 1,607,142 | |||
Non-interest bearing deposits | $ | 252,453 | $ | 276,295 | $ | 238,603 | |||
Interest bearing deposits | 1,100,322 | 1,126,380 | 1,171,905 | ||||||
Total deposits | 1,352,775 | 1,402,675 | 1,410,508 | ||||||
Federal funds and repurchase agreements | 2,250 | 3,720 | 3,738 | ||||||
Other borrowings | 34,877 | 36,007 | 41,673 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 628 | 661 | 868 | ||||||
Other liabilities | 8,291 | 9,249 | 8,072 | ||||||
Total liabilities | 1,429,749 | 1,483,240 | 1,495,787 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 19,213 | 18,865 | 17,877 | ||||||
Common stock, 9,233,917, 9,230,799 and 9,162,721 | |||||||||
shares issued & outstanding | 46,170 | 46,154 | 45,814 | ||||||
Additional paid-in capital | 32,497 | 32,469 | 31,892 | ||||||
Nonvested restricted stock awards | 325 | 244 | 700 | ||||||
Retained earnings | 21,184 | 19,180 | 15,508 | ||||||
Accumulated other comprehensive income (loss) | 1,382 | 1,531 | (436 | ) | |||||
Total equity | 120,771 | 118,443 | 111,355 | ||||||
Total liabilities & equity | $ | 1,550,520 | $ | 1,601,683 | $ | 1,607,142 | |||
First M&F Corporation and Subsidiary | ||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||
(In thousands, except share data) | ||||||
Three Months Ended March 31 | ||||||
2013 | 2012 | |||||
Interest and fees on loans | $ | 12,698 | $ | 14,158 | ||
Interest on loans held for sale | 56 | 173 | ||||
Taxable investments | 1,231 | 1,490 | ||||
Tax exempt investments | 352 | 318 | ||||
Federal funds sold | 6 | 15 | ||||
Interest bearing bank balances | 58 | 51 | ||||
Total interest income | 14,401 | 16,205 | ||||
Interest on deposits | 1,516 | 2,513 | ||||
Interest on fed funds and repurchase agreements | 4 | 6 | ||||
Interest on other borrowings | 371 | 451 | ||||
Interest on subordinated debt | 283 | 271 | ||||
Total interest expense | 2,174 | 3,241 | ||||
Net interest income | 12,227 | 12,964 | ||||
Provision for possible loan losses | 1,280 | 2,280 | ||||
Net interest income after loan loss | 10,947 | 10,684 | ||||
Service charges on deposits | 2,371 | 2,457 | ||||
Mortgage banking income | 1,291 | 567 | ||||
Agency commission income | 820 | 829 | ||||
Fiduciary and brokerage income | 160 | 140 | ||||
Other income | 1,044 | 837 | ||||
Gains on AFS securities | 16 | 591 | ||||
Total noninterest income | 5,702 | 5,421 | ||||
Salaries and employee benefits | 6,362 | 6,863 | ||||
Net occupancy expense | 865 | 908 | ||||
Equipment expenses | 432 | 463 | ||||
Software and processing expenses | 356 | 362 | ||||
FDIC insurance assessments | 348 | 514 | ||||
Foreclosed property expenses | 588 | 1,456 | ||||
Intangible asset amortization and impairment | 106 | 107 | ||||
Other expenses | 3,882 | 3,313 | ||||
Total noninterest expense | 12,939 | 13,986 | ||||
Net income before taxes | 3,710 | 2,119 | ||||
Income tax expense | 1,112 | 512 | ||||
Net income | $ | 2,598 | $ | 1,607 | ||
Earnings Per Common Share Calculations: | ||||||
Net income | $ | 2,598 | $ | 1,607 | ||
Dividends and accretion on preferred stock | (497 | ) | (463 | ) | ||
Net income applicable to common stock | 2,101 | 1,144 | ||||
Earnings attributable to participating securities | 81 | 5 | ||||
Net income allocated to common shareholders | $ | 2,020 | $ | 1,139 | ||
Weighted average shares (basic) | 9,231,457 | 9,156,476 | ||||
Weighted average shares (diluted) | 9,345,384 | 9,156,476 | ||||
Basic earnings per share | $ | 0.22 | $ | 0.12 | ||
Diluted earnings per share | $ | 0.22 | $ | 0.12 | ||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
March 31 | December 31 | March 31 | December 31 | |||||||||
2013 | 2012 | 2012 | 2011 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.67 | % | 0.44 | % | 0.40 | % | 0.27 | % | ||||
Return on equity (annualized) (a) | 8.84 | % | 6.12 | % | 5.84 | % | 4.00 | % | ||||
Return on common equity (annualized) (a) | 8.51 | % | 5.30 | % | 4.95 | % | 2.81 | % | ||||
Efficiency ratio (c) | 71.25 | % | 74.98 | % | 75.18 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.53 | % | 3.67 | % | 3.67 | % | 3.68 | % | ||||
Net charge-offs to average loans (annualized) | 0.21 | % | 0.61 | % | 0.47 | % | 1.05 | % | ||||
Nonaccrual loans to total loans | 0.72 | % | 0.75 | % | 1.45 | % | 1.68 | % | ||||
90 day accruing loans to total loans | 0.03 | % | 0.03 | % | 0.02 | % | 0.06 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
March 31 | December 31 | September 30 | June 30 | |||||||||
2013 | 2012 | 2012 | 2012 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.22 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 11.00 | 10.79 | 10.69 | 10.44 | ||||||||
Closing stock price | 14.15 | 6.98 | 7.42 | 5.18 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 150,125 | $ | 153,550 | $ | 155,890 | $ | 147,773 | ||||
Non-residential real estate | 557,453 | 542,859 | 554,475 | 567,184 | ||||||||
Residential real estate | 203,260 | 200,992 | 197,629 | 189,927 | ||||||||
Home equity loans | 39,047 | 37,736 | 37,196 | 36,183 | ||||||||
Consumer loans | 37,772 | 40,336 | 42,137 | 41,529 | ||||||||
Total loans | $ | 987,657 | $ | 975,473 | $ | 987,327 | $ | 982,596 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 252,453 | $ | 276,295 | $ | 233,684 | $ | 236,145 | ||||
NOW deposits | 419,376 | 423,461 | 386,371 | 391,726 | ||||||||
MMDA deposits | 207,931 | 214,091 | 216,620 | 211,447 | ||||||||
Savings deposits | 119,728 | 118,123 | 117,404 | 116,598 | ||||||||
Core certificates of deposit under $100,000 | 182,245 | 188,733 | 201,361 | 208,684 | ||||||||
Core certificates of deposit $100,000 and over | 159,913 | 165,979 | 177,084 | 178,926 | ||||||||
Brokered certificates of deposit under $100,000 | 3,295 | 3,549 | 3,417 | 3,393 | ||||||||
Brokered certificates of deposit $100,000 and over | 7,834 | 12,444 | 13,533 | 14,419 | ||||||||
Total deposits | $ | 1,352,775 | $ | 1,402,675 | $ | 1,349,474 | $ | 1,361,338 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 7,277 | $ | 7,444 | $ | 6,219 | $ | 6,443 | ||||
Other real estate | 24,820 | 25,970 | 28,002 | 31,077 | ||||||||
Investment securities | 604 | 733 | 644 | 639 | ||||||||
Total nonperforming assets | $ | 32,701 | $ | 34,147 | $ | 34,865 | $ | 38,159 | ||||
Accruing loans past due 90 days or more | $ | 268 | $ | 321 | $ | 408 | $ | 1,537 | ||||
Restructured loans (accruing) | $ | 21,657 | $ | 21,800 | $ | 16,784 | $ | 18,372 | ||||
Total nonaccrual loan to loans | 0.72 | % | 0.75 | % | 0.62 | % | 0.64 | % | ||||
Total nonperforming credit assets to loans and ORE | 3.12 | % | 3.27 | % | 3.29 | % | 3.62 | % | ||||
Total nonperforming assets to assets ratio | 2.11 | % | 2.13 | % | 2.24 | % | 2.44 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 17,492 | $ | 16,656 | $ | 15,310 | $ | 16,084 | ||||
Provision for loan loss | 1,280 | 1,980 | 1,980 | 2,280 | ||||||||
Charge-offs | (747 | ) | (1,584 | ) | (1,035 | ) | (3,460 | ) | ||||
Recoveries | 244 | 440 | 401 | 406 | ||||||||
Ending balance | $ | 18,269 | $ | 17,492 | $ | 16,656 | $ | 15,310 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
March 31 | December 31 | September 30 | June 30 | |||||||||
2013 | 2012 | 2012 | 2012 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 14,401 | $ | 15,186 | $ | 15,625 | $ | 15,906 | ||||
Interest expense | 2,174 | 2,545 | 2,753 | 2,990 | ||||||||
Net interest income | 12,227 | 12,641 | 12,872 | 12,916 | ||||||||
Provision for loan losses | 1,280 | 1,980 | 1,980 | 2,280 | ||||||||
Noninterest revenues | 5,702 | 5,735 | 5,607 | 6,035 | ||||||||
Noninterest expenses | 12,939 | 13,913 | 14,060 | 14,319 | ||||||||
Net income before taxes | 3,710 | 2,483 | 2,439 | 2,352 | ||||||||
Income tax expense | 1,112 | 652 | 645 | 599 | ||||||||
Net income | $ | 2,598 | $ | 1,831 | $ | 1,794 | $ | 1,753 | ||||
Preferred dividends | (497 | ) | (488 | ) | (479 | ) | (471 | ) | ||||
Net income applicable to common stock | 2,101 | 1,343 | 1,315 | 1,282 | ||||||||
Earnings attributable to participating securities | 81 | 53 | 51 | 56 | ||||||||
Net income allocated to common shareholders | $ | 2,020 | $ | 1,290 | $ | 1,264 | $ | 1,226 | ||||
Tax-equivalent net interest income | $ | 12,458 | $ | 12,859 | $ | 13,088 | $ | 13,134 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,570,994 | $ | 1,585,467 | $ | 1,546,416 | $ | 1,577,420 | ||||
Loans held for investment | 977,198 | 982,894 | 984,282 | 973,545 | ||||||||
Earning assets | 1,431,054 | 1,436,348 | 1,396,824 | 1,420,370 | ||||||||
Deposits | 1,369,784 | 1,381,667 | 1,343,559 | 1,379,716 | ||||||||
Equity | 119,209 | 117,529 | 115,544 | 112,466 | ||||||||
Common equity | 100,171 | 98,837 | 97,186 | 94,430 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.67 | % | 0.46 | % | 0.46 | % | 0.45 | % | ||||
Return on average equity (annualized) (a) | 8.84 | % | 6.19 | % | 6.18 | % | 6.27 | % | ||||
Return on average common equity (annualized) (a) | 8.51 | % | 5.40 | % | 5.38 | % | 5.46 | % | ||||
Average equity to average assets | 7.59 | % | 7.41 | % | 7.47 | % | 7.13 | % | ||||
Tangible equity to tangible assets (b) | 7.55 | % | 7.15 | % | 7.28 | % | 7.04 | % | ||||
Tangible common equity to tangible assets (b) | 6.31 | % | 5.97 | % | 6.08 | % | 5.87 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.53 | % | 3.56 | % | 3.73 | % | 3.72 | % | ||||
Efficiency ratio (c) | 71.25 | % | 74.83 | % | 75.21 | % | 74.70 | % | ||||
Net charge-offs to average loans (annualized) | 0.21 | % | 0.46 | % | 0.26 | % | 1.26 | % | ||||
Nonaccrual loans to total loans | 0.72 | % | 0.75 | % | 0.62 | % | 0.64 | % | ||||
90 day accruing loans to total loans | 0.03 | % | 0.03 | % | 0.04 | % | 0.15 | % | ||||
Price to book | 1.29x | 0.65x | 0.69x | 0.50x | ||||||||
Price to earnings | 16.08x | 12.46x | 13.25x | 9.25x | ||||||||
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 2013 | $ | 2,598 | $ | 2,101 | $ | 2,020 | $ | 0.22 | ||||
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 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
1Q 2013 | $ | 40.4 | 31.40 | % | 1.47 | % | ||||||
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 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
1Q 2013 | 3.34 | % | 71.25 | % | ||||||||
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 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD March 2013 | QTD March 2012 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 76,526 | 0.31 | % | $ | 79,212 | 0.26 | % | ||
Federal funds sold | 10,000 | 0.24 | % | 25,000 | 0.25 | % | ||||
Taxable investments (amortized cost) | 309,373 | 1.61 | % | 299,622 | 2.00 | % | ||||
Tax-exempt investments (amortized cost) | 44,187 | 5.16 | % | 34,969 | 5.83 | % | ||||
Loans held for sale | 13,770 | 1.65 | % | 22,729 | 3.06 | % | ||||
Loans held for investment | 977,198 | 5.28 | % | 983,800 | 5.80 | % | ||||
Total earning assets | 1,431,054 | 4.15 | % | 1,445,332 | 4.57 | % | ||||
Non-earning assets | 139,940 | 161,681 | ||||||||
Total average assets | $ | 1,570,994 | $ | 1,607,013 | ||||||
NOW | $ | 422,966 | 0.22 | % | $ | 419,260 | 0.46 | % | ||
MMDA | 212,106 | 0.18 | % | 226,602 | 0.52 | % | ||||
Savings | 118,719 | 0.80 | % | 120,835 | 0.99 | % | ||||
Certificates of Deposit | 361,037 | 1.08 | % | 417,086 | 1.39 | % | ||||
Short-term borrowings | 5,337 | 0.31 | % | 5,054 | 0.48 | % | ||||
Other borrowings | 66,173 | 4.01 | % | 73,107 | 3.97 | % | ||||
Total interest bearing liabilities | 1,186,338 | 0.74 | % | 1,261,944 | 1.03 | % | ||||
Non-interest bearing deposits | 254,957 | 225,610 | ||||||||
Non-interest bearing liabilities | 10,490 | 8,714 | ||||||||
Preferred equity | 19,038 | 17,720 | ||||||||
Common equity | 100,171 | 93,025 | ||||||||
Total average liabilities and equity | $ | 1,570,994 | $ | 1,607,013 | ||||||
Net interest spread | 3.41 | % | 3.54 | % | ||||||
Effect of non-interest bearing deposits | 0.13 | % | 0.16 | % | ||||||
Effect of leverage | (0.01 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.53 | % | 3.67 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.05 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.47 | % | 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) | ||||