Attached files
| file | filename |
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| 8-K/A - FORM 8-K/A - FIRST M&F CORP/MS | amended2q2013release8-ka.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
August 7, 2013
FOR IMMEDIATE RELEASE
First M&F revises earnings for second quarter
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) revised net income for the quarter ended June 30, 2013 to $222 thousand from $2.205 million reported in the July 19 earnings announcement. Earnings per share after preferred stock dividends were revised to a loss of $.03 basic and diluted per share from the previously reported net profit of $.18 basic and $.17 diluted per share. Net income for the year was revised to $2.820 million or $.19 basic and diluted per share from the previously reported $4.803 million or $.40 basic and $.39 diluted per share.
As a result of a third quarter review of transactions and events, management determined it appropriate to record a loss on the sale of a foreclosed property and an other-than-temporary impairment of certain securities in the second quarter of 2013 rather than the third quarter. The foreclosed property sale resulted in a $1.125 million pre-tax loss. The other-than-temporary impairment, related to the Company's investments in certain collateralized debt obligations that were sold during the third quarter, resulted in a pre-tax charge of $2.038 million. The impairment charge effectively wrote the amortized cost basis of the securities down to their June 30 fair value of $1.070 million. The subsequent third quarter sale of the securities resulted in a gain of $375 thousand, resulting in net losses of $1.663 million on the securities for the year.
Hugh Potts, Jr., Chairman and CEO commented, “We are making these revisions after a detailed review of the accounting and reporting of certain transactions, identified in the third quarter but which had second quarter effects. We have made great strides in reducing our non-performing assets and improving the quality of our balance sheet, especially in light of our anticipated merger with Renasant. These transactions will not have a material impact on the combined company after the merger is completed. All indications are that the pending merger with Renasant will be completed during the third quarter.”
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) | |||||||||
June 30 | December 31 | June 30 | |||||||
2013 | 2012 | 2012 | |||||||
Cash and due from banks | $ | 51,293 | $ | 54,811 | $ | 37,147 | |||
Interest bearing bank balances | 133,333 | 94,313 | 20,708 | ||||||
Federal funds sold | 10,000 | 10,000 | 6,750 | ||||||
Securities available for sale (cost of | |||||||||
$275,550, $341,273 and $371,424) | 273,553 | 348,562 | 377,670 | ||||||
Loans held for sale | 2,614 | 21,014 | 22,291 | ||||||
Loans | 967,013 | 975,473 | 982,596 | ||||||
Allowance for loan losses | 19,431 | 17,492 | 15,310 | ||||||
Net loans | 947,582 | 957,981 | 967,286 | ||||||
Bank premises and equipment | 36,438 | 37,264 | 37,529 | ||||||
Accrued interest receivable | 4,777 | 5,683 | 6,060 | ||||||
Other real estate | 19,721 | 25,970 | 31,077 | ||||||
Other intangible assets | 3,946 | 4,159 | 4,373 | ||||||
Other assets | 44,548 | 41,926 | 50,605 | ||||||
Total assets | $ | 1,527,805 | $ | 1,601,683 | $ | 1,561,496 | |||
Non-interest bearing deposits | $ | 304,734 | $ | 276,295 | $ | 236,145 | |||
Interest bearing deposits | 1,061,474 | 1,126,380 | 1,125,193 | ||||||
Total deposits | 1,366,208 | 1,402,675 | 1,361,338 | ||||||
Federal funds and repurchase agreements | 1,994 | 3,720 | 3,224 | ||||||
Other borrowings | 2,792 | 36,007 | 40,333 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 482 | 661 | 844 | ||||||
Other liabilities | 8,828 | 9,249 | 10,912 | ||||||
Total liabilities | 1,411,232 | 1,483,240 | 1,447,579 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 19,569 | 18,865 | 18,198 | ||||||
Common stock, 9,236,479, 9,230,799 and 9,172,098 | |||||||||
shares issued & outstanding | 46,182 | 46,154 | 45,860 | ||||||
Additional paid-in capital | 32,515 | 32,469 | 31,890 | ||||||
Nonvested restricted stock awards | 405 | 244 | 836 | ||||||
Retained earnings | 20,876 | 19,180 | 16,699 | ||||||
Accumulated other comprehensive income (loss) | (2,974 | ) | 1,531 | 434 | |||||
Total equity | 116,573 | 118,443 | 113,917 | ||||||
Total liabilities & equity | $ | 1,527,805 | $ | 1,601,683 | $ | 1,561,496 | |||
First M&F Corporation and Subsidiary | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Interest and fees on loans | $ | 12,652 | $ | 13,741 | $ | 25,350 | $ | 27,899 | ||||
Interest on loans held for sale | 25 | 244 | 81 | 417 | ||||||||
Taxable investments | 1,338 | 1,563 | 2,569 | 3,053 | ||||||||
Tax exempt investments | 348 | 319 | 700 | 637 | ||||||||
Federal funds sold | 6 | 11 | 12 | 26 | ||||||||
Interest bearing bank balances | 40 | 28 | 98 | 79 | ||||||||
Total interest income | 14,409 | 15,906 | 28,810 | 32,111 | ||||||||
Interest on deposits | 1,452 | 2,233 | 2,968 | 4,746 | ||||||||
Interest on fed funds and repurchase agreements | 2 | 5 | 6 | 11 | ||||||||
Interest on other borrowings | 329 | 437 | 700 | 888 | ||||||||
Interest on subordinated debt | 297 | 315 | 580 | 586 | ||||||||
Total interest expense | 2,080 | 2,990 | 4,254 | 6,231 | ||||||||
Net interest income | 12,329 | 12,916 | 24,556 | 25,880 | ||||||||
Provision for possible loan losses | 1,380 | 2,280 | 2,660 | 4,560 | ||||||||
Net interest income after loan loss | 10,949 | 10,636 | 21,896 | 21,320 | ||||||||
Service charges on deposits | 2,437 | 2,548 | 4,808 | 5,005 | ||||||||
Mortgage banking income | 619 | 1,806 | 1,910 | 2,373 | ||||||||
Agency commission income | 880 | 848 | 1,700 | 1,677 | ||||||||
Fiduciary and brokerage income | 203 | 163 | 363 | 303 | ||||||||
Other income | 618 | 673 | 1,662 | 1,510 | ||||||||
Loss on extinguishment of debt | (1,511 | ) | — | (1,511 | ) | — | ||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$0, $4, $0 and $4 reclassified to other | ||||||||||||
comprehensive income | (2,038 | ) | (4 | ) | (2,038 | ) | (4 | ) | ||||
Gains on AFS securities | 1,378 | 1 | 1,394 | 592 | ||||||||
Total noninterest income | 2,586 | 6,035 | 8,288 | 11,456 | ||||||||
Salaries and employee benefits | 6,377 | 6,737 | 12,739 | 13,600 | ||||||||
Net occupancy expense | 819 | 932 | 1,684 | 1,840 | ||||||||
Equipment expenses | 390 | 423 | 822 | 886 | ||||||||
Software and processing expenses | 555 | 346 | 911 | 708 | ||||||||
FDIC insurance assessments | 323 | 553 | 671 | 1,067 | ||||||||
Foreclosed property expenses | 2,051 | 1,282 | 2,639 | 2,738 | ||||||||
Intangible asset amortization and impairment | 107 | 106 | 213 | 213 | ||||||||
Other expenses | 3,042 | 3,940 | 6,924 | 7,253 | ||||||||
Total noninterest expense | 13,664 | 14,319 | 26,603 | 28,305 | ||||||||
Net income (loss) before taxes | (129 | ) | 2,352 | 3,581 | 4,471 | |||||||
Income tax expense (benefit) | (351 | ) | 599 | 761 | 1,111 | |||||||
Net income | $ | 222 | $ | 1,753 | $ | 2,820 | $ | 3,360 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income | $ | 222 | $ | 1,753 | $ | 2,820 | $ | 3,360 | ||||
Dividends and accretion on preferred stock | (507 | ) | (471 | ) | (1,004 | ) | (934 | ) | ||||
Net income (loss) applicable to common stock | (285 | ) | 1,282 | 1,816 | 2,426 | |||||||
Earnings (loss) attributable to participating securities | (12 | ) | 56 | 69 | 61 | |||||||
Net income (loss) allocated to common shareholders | $ | (273 | ) | $ | 1,226 | $ | 1,747 | $ | 2,365 | |||
Weighted average shares (basic) | 9,234,452 | 9,164,576 | 9,232,963 | 9,160,526 | ||||||||
Weighted average shares (diluted) | 9,234,452 | 9,164,576 | 9,403,561 | 9,160,526 | ||||||||
Basic earnings (loss) per share | $ | (0.03 | ) | $ | 0.14 | $ | 0.19 | $ | 0.26 | |||
Diluted earnings (loss) per share | $ | (0.03 | ) | $ | 0.14 | $ | 0.19 | $ | 0.26 | |||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
June 30 | December 31 | June 30 | December 31 | |||||||||
2013 | 2012 | 2012 | 2011 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.37 | % | 0.44 | % | 0.42 | % | 0.27 | % | ||||
Return on equity (annualized) (a) | 4.73 | % | 6.12 | % | 6.06 | % | 4.00 | % | ||||
Return on common equity (annualized) (a) | 3.63 | % | 5.30 | % | 5.21 | % | 2.81 | % | ||||
Efficiency ratio (c) | 79.88 | % | 74.98 | % | 74.94 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.55 | % | 3.67 | % | 3.69 | % | 3.68 | % | ||||
Net charge-offs to average loans (annualized) | 0.15 | % | 0.61 | % | 0.86 | % | 1.05 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 0.75 | % | 0.64 | % | 1.68 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.03 | % | 0.15 | % | 0.06 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income (loss) | $ | (0.03 | ) | $ | 0.22 | $ | 0.14 | $ | 0.14 | |||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.50 | 11.00 | 10.79 | 10.69 | ||||||||
Closing stock price | 15.81 | 14.15 | 6.98 | 7.42 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 145,411 | $ | 150,125 | $ | 153,550 | $ | 155,890 | ||||
Non-residential real estate | 540,694 | 557,453 | 542,859 | 554,475 | ||||||||
Residential real estate | 206,490 | 203,260 | 200,992 | 197,629 | ||||||||
Home equity loans | 38,340 | 39,047 | 37,736 | 37,196 | ||||||||
Consumer loans | 36,078 | 37,772 | 40,336 | 42,137 | ||||||||
Total loans | $ | 967,013 | $ | 987,657 | $ | 975,473 | $ | 987,327 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 304,734 | $ | 252,453 | $ | 276,295 | $ | 233,684 | ||||
NOW deposits | 404,457 | 419,376 | 423,461 | 386,371 | ||||||||
MMDA deposits | 200,839 | 207,931 | 214,091 | 216,620 | ||||||||
Savings deposits | 119,583 | 119,728 | 118,123 | 117,404 | ||||||||
Core certificates of deposit under $100,000 | 176,722 | 182,245 | 188,733 | 201,361 | ||||||||
Core certificates of deposit $100,000 and over | 148,734 | 159,913 | 165,979 | 177,084 | ||||||||
Brokered certificates of deposit under $100,000 | 3,305 | 3,295 | 3,549 | 3,417 | ||||||||
Brokered certificates of deposit $100,000 and over | 7,834 | 7,834 | 12,444 | 13,533 | ||||||||
Total deposits | $ | 1,366,208 | $ | 1,352,775 | $ | 1,402,675 | $ | 1,349,474 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 6,036 | $ | 7,277 | $ | 7,444 | $ | 6,219 | ||||
Other real estate | 19,721 | 24,820 | 25,970 | 28,002 | ||||||||
Investment securities | 679 | 604 | 733 | 644 | ||||||||
Total nonperforming assets | $ | 26,436 | $ | 32,701 | $ | 34,147 | $ | 34,865 | ||||
Accruing loans past due 90 days or more | $ | 186 | $ | 268 | $ | 321 | $ | 408 | ||||
Restructured loans (accruing) | $ | 6,209 | $ | 21,657 | $ | 21,800 | $ | 16,784 | ||||
Total nonaccrual loan to loans | 0.62 | % | 0.72 | % | 0.75 | % | 0.62 | % | ||||
Total nonperforming credit assets to loans and ORE | 2.60 | % | 3.12 | % | 3.27 | % | 3.29 | % | ||||
Total nonperforming assets to assets ratio | 1.73 | % | 2.11 | % | 2.13 | % | 2.24 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 18,269 | $ | 17,492 | $ | 16,656 | $ | 15,310 | ||||
Provision for loan loss | 1,380 | 1,280 | 1,980 | 1,980 | ||||||||
Charge-offs | (569 | ) | (747 | ) | (1,584 | ) | (1,035 | ) | ||||
Recoveries | 351 | 244 | 440 | 401 | ||||||||
Ending balance | $ | 19,431 | $ | 18,269 | $ | 17,492 | $ | 16,656 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 14,409 | $ | 14,401 | $ | 15,186 | $ | 15,625 | ||||
Interest expense | 2,080 | 2,174 | 2,545 | 2,753 | ||||||||
Net interest income | 12,329 | 12,227 | 12,641 | 12,872 | ||||||||
Provision for loan losses | 1,380 | 1,280 | 1,980 | 1,980 | ||||||||
Noninterest revenues | 2,586 | 5,702 | 5,735 | 5,607 | ||||||||
Noninterest expenses | 13,664 | 12,939 | 13,913 | 14,060 | ||||||||
Net income before taxes | (129 | ) | 3,710 | 2,483 | 2,439 | |||||||
Income tax expense | (351 | ) | 1,112 | 652 | 645 | |||||||
Net income | $ | 222 | $ | 2,598 | $ | 1,831 | $ | 1,794 | ||||
Preferred dividends | (507 | ) | (497 | ) | (488 | ) | (479 | ) | ||||
Net income (loss) applicable to common stock | (285 | ) | 2,101 | 1,343 | 1,315 | |||||||
Earnings (loss) attributable to participating securities | (12 | ) | 81 | 53 | 51 | |||||||
Net income (loss) allocated to common shareholders | $ | (273 | ) | $ | 2,020 | $ | 1,290 | $ | 1,264 | |||
Tax-equivalent net interest income | $ | 12,557 | $ | 12,458 | $ | 12,859 | $ | 13,088 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,543,020 | $ | 1,570,994 | $ | 1,585,467 | $ | 1,546,416 | ||||
Loans held for investment | 973,160 | 977,198 | 982,894 | 984,282 | ||||||||
Earning assets | 1,408,023 | 1,431,054 | 1,436,348 | 1,396,824 | ||||||||
Deposits | 1,345,703 | 1,369,784 | 1,381,667 | 1,343,559 | ||||||||
Equity | 121,328 | 119,209 | 117,529 | 115,544 | ||||||||
Common equity | 101,940 | 100,171 | 98,837 | 97,186 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.06 | % | 0.67 | % | 0.46 | % | 0.46 | % | ||||
Return on average equity (annualized) (a) | 0.73 | % | 8.84 | % | 6.19 | % | 6.18 | % | ||||
Return on average common equity (annualized) (a) | (1.12 | )% | 8.51 | % | 5.40 | % | 5.38 | % | ||||
Average equity to average assets | 7.86 | % | 7.59 | % | 7.41 | % | 7.47 | % | ||||
Tangible equity to tangible assets (b) | 7.39 | % | 7.55 | % | 7.15 | % | 7.28 | % | ||||
Tangible common equity to tangible assets (b) | 6.11 | % | 6.31 | % | 5.97 | % | 6.08 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.58 | % | 3.53 | % | 3.56 | % | 3.73 | % | ||||
Efficiency ratio (c) | 90.24 | % | 71.25 | % | 74.83 | % | 75.21 | % | ||||
Net charge-offs to average loans (annualized) | 0.09 | % | 0.21 | % | 0.46 | % | 0.26 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 0.72 | % | 0.75 | % | 0.62 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||
Price to book | 1.51x | 1.29x | 0.65x | 0.69x | ||||||||
Price to earnings | N/A | 16.08x | 12.46x | 13.25x | ||||||||
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) | |||||||||
2Q 2013 | $ | 222 | $ | (285 | ) | $ | (273 | ) | $ | (0.03 | ) | |
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 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
2Q 2013 | $ | 35.6 | 17.07 | % | 0.67 | % | ||||||
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 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
2Q 2013 | 3.55 | % | 90.24 | % | ||||||||
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 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD June 2013 | QTD June 2012 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 61,978 | 0.26 | % | $ | 30,923 | 0.37 | % | ||
Federal funds sold | 10,000 | 0.25 | % | 15,082 | 0.27 | % | ||||
Taxable investments (amortized cost) | 313,887 | 1.71 | % | 333,794 | 1.88 | % | ||||
Tax-exempt investments (amortized cost) | 44,109 | 5.04 | % | 36,610 | 5.59 | % | ||||
Loans held for sale | 4,889 | 2.08 | % | 30,416 | 3.22 | % | ||||
Loans held for investment | 973,160 | 5.22 | % | 973,545 | 5.69 | % | ||||
Total earning assets | 1,408,023 | 4.17 | % | 1,420,370 | 4.57 | % | ||||
Non-earning assets | 134,997 | 157,050 | ||||||||
Total average assets | $ | 1,543,020 | $ | 1,577,420 | ||||||
NOW | $ | 411,929 | 0.23 | % | $ | 404,958 | 0.43 | % | ||
MMDA | 200,444 | 0.18 | % | 217,533 | 0.37 | % | ||||
Savings | 120,227 | 0.76 | % | 121,778 | 0.95 | % | ||||
Certificates of Deposit | 345,147 | 1.04 | % | 402,703 | 1.31 | % | ||||
Short-term borrowings | 2,862 | 0.20 | % | 2,974 | 0.62 | % | ||||
Other borrowings | 62,062 | 4.05 | % | 71,771 | 4.21 | % | ||||
Total interest bearing liabilities | 1,142,671 | 0.73 | % | 1,221,717 | 0.98 | % | ||||
Non-interest bearing deposits | 267,956 | 232,744 | ||||||||
Non-interest bearing liabilities | 11,065 | 10,493 | ||||||||
Preferred equity | 19,388 | 18,036 | ||||||||
Common equity | 101,940 | 94,430 | ||||||||
Total average liabilities and equity | $ | 1,543,020 | $ | 1,577,420 | ||||||
Net interest spread | 3.44 | % | 3.59 | % | ||||||
Effect of non-interest bearing deposits | 0.14 | % | 0.16 | % | ||||||
Effect of leverage | 0.00 | % | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.58 | % | 3.72 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.06 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.51 | % | 3.66 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD June 2013 | YTD June 2012 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 69,212 | 0.29 | % | $ | 55,067 | 0.29 | % | ||
Federal funds sold | 10,000 | 0.25 | % | 20,041 | 0.26 | % | ||||
Taxable investments (amortized cost) | 311,642 | 1.66 | % | 316,708 | 1.94 | % | ||||
Tax-exempt investments (amortized cost) | 44,148 | 5.10 | % | 35,790 | 5.71 | % | ||||
Loans held for sale | 9,305 | 1.76 | % | 26,573 | 3.15 | % | ||||
Loans held for investment | 975,168 | 5.25 | % | 978,672 | 5.74 | % | ||||
Total earning assets | 1,419,475 | 4.16 | % | 1,432,851 | 4.57 | % | ||||
Non-earning assets | 137,455 | 159,365 | ||||||||
Total average assets | $ | 1,556,930 | $ | 1,592,216 | ||||||
NOW | $ | 417,417 | 0.23 | % | $ | 412,108 | 0.45 | % | ||
MMDA | 206,242 | 0.18 | % | 222,067 | 0.45 | % | ||||
Savings | 119,477 | 0.78 | % | 121,307 | 0.97 | % | ||||
Certificates of Deposit | 353,048 | 1.06 | % | 409,895 | 1.35 | % | ||||
Short-term borrowings | 4,093 | 0.27 | % | 4,014 | 0.53 | % | ||||
Other borrowings | 64,107 | 4.03 | % | 72,439 | 4.09 | % | ||||
Total interest bearing liabilities | 1,164,384 | 0.74 | % | 1,241,830 | 1.01 | % | ||||
Non-interest bearing deposits | 261,493 | 229,177 | ||||||||
Non-interest bearing liabilities | 10,779 | 9,603 | ||||||||
Preferred equity | 19,214 | 17,878 | ||||||||
Common equity | 101,060 | 93,728 | ||||||||
Total average liabilities and equity | $ | 1,556,930 | $ | 1,592,216 | ||||||
Net interest spread | 3.42 | % | 3.56 | % | ||||||
Effect of non-interest bearing deposits | 0.14 | % | 0.16 | % | ||||||
Effect of leverage | (0.01 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.55 | % | 3.69 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.06 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.49 | % | 3.63 | % | ||||||
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) | ||||