First South Bancorp, Inc. Reports Increase in December 31, 2011 Quarterly and Year End Operating Results

WASHINGTON, N.C., Jan. 13, 2012 /PRNewswire/ -- First South Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), the parent holding company of First South Bank (the "Bank"), reports its unaudited operating results for the quarter and year ended December 31, 2011.

For the 2011 fourth quarter, net income increased 9.4% to $441,000 or $0.05 per diluted common share, from net income of $403,000 or $0.04 per diluted common share earned in the linked 2011 third quarter, compared to a net operating loss of $6.5 million or ($0.67) per diluted common share for the 2010 fourth quarter. 

Net income for the year ended December 31, 2011 increased to $1.6 million or $0.16 per diluted common share, compared to a net operating loss of $2.4 million or ($0.24) per diluted common share for the year ended December 31, 2010.

Tom Vann, President and CEO, commented, "I am pleased to report the Company's operating results for the fourth quarter of 2011. The Company continues to generate solid core earnings.  Fourth quarter 2011 net earnings were $441,000, after recording $2.6 million of credit loss provisions.  In the 2011 fourth quarter, we continued evaluating the credit quality of the Bank's loan portfolio and market values of foreclosed properties.  While the volume of our nonperforming assets increased during 2011, based on our current analysis we continue to remain cautiously optimistic about the financial stress some of our borrowers are facing.  Consequently, we are provisioning accordingly to replenish net charge-offs and to maintain our allowance for loan and lease losses at an adequate level.  Mitigating our nonperforming assets will continue to be a top priority for the Bank during 2012," said Mr. Vann.

Asset Quality

Total nonperforming assets, including loans on non-accrual status, restructured loans on non-accrual status and other real estate owned, increased to $60.0 million at December 31, 2011, from $52.9 million at December 31, 2010.  Loans on non-accrual status increased to $21.6 million at December 31, 2011, from $14.3 million at December 31, 2010.  At December 31, 2011, $10.6 million of these loans were earning interest, compared to $5.1 million at December 31, 2010.

Restructured loans on non-accrual status, declined to $21.4 million at December 31, 2011, from $27.0 million at December 31, 2010.  At December 31, 2011, $12.2 million of these restructured loans were current and making scheduled payments according to the terms of their restructure, compared to $14.6 million at December 31, 2010.  Performing restructured loans on full accrual status totaled $25.4 million at December 31, 2011, compared to $31.3 million at December 31, 2010. 

Other real estate owned increased to $17.0 million at December 31, 2011, from $11.6 million at December 31, 2010, reflecting foreclosure activity net of sales of certain real estate properties. 

"The stabilization of property values continues to be an issue in the markets we serve.  We will continue monitoring these values and mitigate nonperforming assets as quickly as feasible," said Mr. Vann.

The Bank recorded $2.6 million of provisions for credit losses in both the 2011 fourth quarter and the linked 2011 third quarter, compared to $13.7 million in the 2010 fourth quarter. Credit loss provisions were necessary to replenish net charge-offs and to maintain the allowance for loan and lease losses (ALLL) at a level that management believes is adequate to absorb probable future losses in the loan portfolio.  The ALLL was $15.2 million at December 31, 2011 (2.8% of total loans), compared to $18.8 million at December 31, 2010 (3.0% of total loans). Net charge offs were $5.8 million in the 2011 fourth quarter, compared to $3.0 million in the linked 2011 third quarter and $3.4 million in the 2010 fourth quarter.

Mr. Vann stated, "Management continues to feel it is prudent to take a conservative posture in provisioning for credit losses during these weak economic conditions as we mitigate problem assets.  We believe the current level of our ALLL is adequate, however, there is no assurance in the future that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require additional adjustments to the ALLL."

Net Interest Income

Net interest income remained relatively consistent at $7.8 million for the 2011 fourth quarter, compared to $8.0 million for the linked 2011 third quarter and $7.8 million for the 2010 fourth quarter. The change in levels of net interest income is influenced by the volume of interest-earning assets and interest-bearing liabilities and the management of rates earned and paid during each respective reporting period. The net interest margin on average earning assets also remained relatively consistent at 4.5% for the 2011 fourth quarter, compared to 4.6% for the linked 2011 third quarter and 4.3% for the 2010 fourth quarter.

Non-Interest Income

Total non-interest income increased to $2.6 million for the 2011 fourth quarter, from $2.3 million for the linked 2011 third quarter and $1.9 million for the comparative 2010 fourth quarter.  Revenue from loan and deposit service offerings (loan fees, deposit fees and service charges and servicing fee income) also remained relatively consistent at $1.7 million for both the 2011 fourth quarter and the linked 2011 third quarter, compared to $1.9 million for the comparative 2010 fourth quarter.

Net gains from mortgage loan sales increased to $467,000 in the 2011 fourth quarter, from $165,000 in the linked 2011 third quarter and $311,000 in the comparative 2010 fourth quarter.  Net gains from mortgage-backed securities sales increased to $262,000 in the 2011 fourth quarter, from $204,000 in the linked 2011 third quarter and $51,000 in the comparative 2010 fourth quarter.

In its efforts of mitigating nonperforming assets, the Bank recognized $24,000 of net losses on the sale of other real estate owned properties during the 2011 fourth quarter, compared to net losses of $16,000 in the linked 2011 third quarter and $597,000 in the 2010 fourth quarter.

Non-Interest Expense

Total non-interest expense increased to $7.2 million for the 2011 fourth quarter, from $7.0 million for the linked 2011 third quarter and $6.7 million for the 2010 fourth quarter.  The largest component of non-interest expense, compensation and fringe benefits, declined to $3.6 million for the 2011 fourth quarter, from $3.7 million for the linked 2011 third quarter and $3.8 million for the comparative 2010 fourth quarter, reflecting the Bank's efforts of managing human resources cost.

Expenses attributable to valuation adjustments, renovating, maintenance and property taxes paid for the current volume of other real estate owned properties increased to $977,000 for the 2011 fourth quarter, from $579,000 for the linked 2011 third quarter, and $220,000 for the comparative 2010 fourth quarter. 

FDIC insurance premiums declined to $261,000 for the 2011 fourth quarter, from $388,000 for the linked 2011 third quarter and $290,000 for the comparative 2010 fourth quarter, reflecting a new change in the FDIC's deposit insurance assessment calculation based on assets and tier one capital versus deposits.

Other noninterest expenses including premises and equipment, advertising, data processing, repairs and maintenance, office supplies, professional fees, taxes and insurance, etc., remained relatively consistent during the respective reporting periods.

Income tax expense was $142,000 for the 2011 fourth quarter and $256,000 for the linked 2011 third quarter, compared to a $4.3 million income tax benefit for the 2010 fourth quarter that resulted from a net pre-tax operating loss.  Changes in the amount of income tax expense reflects changes in pretax income, deductible expenses, the application of permanent and temporary differences and the applicable income tax rates in effect during each period. 

Balance Sheet

Total assets declined to $745.2 million at December 31, 2011, from $797.2 million at December 31, 2010. Net loans and leases receivable declined to $525.2 million at December 31, 2011, from $606.1 million at December 31, 2010, reflecting the net of principal repayments, the volume of loans originated, foreclosures, sales, and securitizations of loans into mortgage-backed securities during the current year.  Mortgage-backed securities increased to $135.8 million at December 31, 2011, from $98.9 million at December 31, 2010, reflecting the net of purchases, sales, principal repayments and securitizations of certain mortgage loans during the current year.  Cash and overnight investments declined to $32.8 million at December 31, 2011, from $44.4 million at December 31, 2010, reflecting net changes in the Bank's cash flow and liquidity position, including the repayment of borrowings.   

Total deposits declined to $642.6 million at December 31, 2011, from $689.5 million at December 31, 2010.  Borrowings declined to $2.1 million at December 31, 2011, from $11.5 million at December 31, 2010, reflecting the repayment of a $10.0 million fixed-rate FHLB advance.  The cost of funds improved to 1.0% for the 2011 fourth quarter, from 1.1% for the linked 2011 third quarter and from 1.2% for the comparative 2010 fourth quarter. The Bank manages its cost of funds by a combination of pricing new deposits, the renewal of maturing time deposits and the repositioning of borrowings in the current lower interest rate environment. 

Stockholders' equity increased to $82.4 million at December 31, 2011, from $79.5 million at December 31, 2010, reflecting year-to-date net income and changes in accumulated other comprehensive income.  The equity to assets ratio increased to 11.1% at December 31, 2011, from 10.0% at December 31, 2010.  There were 9,751,271 common shares outstanding at both December 31, 2011 and December 31, 2010.  The book value per common share increased to $8.45 at December 31, 2011, from $8.15 at December 31, 2010.

First South Bancorp, Inc. may be accessed on its website at www.firstsouthnc.com.  The Company's common stock symbol as traded on the NASDAQ Global Select Market is "FSBK".

First South Bank has been serving the citizens of eastern North Carolina since 1902 and offers a variety of financial products and services, including a leasing company.  Securities brokerage services are made available through an affiliation with an independent broker/dealer. The Bank operates through its main office headquartered in Washington, North Carolina, and has 26 full service branch offices located throughout central, eastern, northeastern and southeastern North Carolina.

Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation to other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

(NASDAQ: FSBK)

For more information contact:
Bill Wall (CFO) (252-940-5017)
Tom Vann (CEO) (252-940-4916)
Website: www.firstsouthnc.com

  

 

First South Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

December 31

 

 

 

 

 

 

2011

 

 

2010

*

 

 

Assets

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

14,298,146

 

$

14,684,377

 

 

 

Interest-bearing deposits in financial institutions

 

 

18,476,173

 

 

29,749,236

 

 

 

Mortgage-backed securities - available for sale, at fair value

 

 

85,309,481

 

 

98,637,742

 

 

 

Mortgage-backed securities - held for investment

 

 

50,524,724

 

 

244,836

 

 

 

Loans and leases receivable:

 

 

 

 

 

 

 

 

 

   Held for sale

 

 

6,435,983

 

 

4,464,040

 

 

 

   Held for investment

 

 

533,960,226

 

 

620,440,530

 

 

 

   Allowance for loan and lease losses

 

 

(15,194,014)

 

 

(18,830,288)

 

 

 

           Loans and leases receivable, net

 

 

525,202,195

 

 

606,074,282

 

 

 

Premises and equipment, net

 

 

11,679,430

 

 

9,162,538

 

 

 

Other real estate owned

 

 

17,004,874

 

 

11,616,390

 

 

 

Stock in Federal Home Loan Bank of Atlanta, at cost

 

 

1,886,900

 

 

3,474,900

 

 

 

Accrued interest receivable

 

 

2,210,314

 

 

2,336,527

 

 

 

Goodwill

 

 

4,218,576

 

 

4,218,576

 

 

 

Mortgage servicing rights

 

 

1,237,161

 

 

1,357,659

 

 

 

Identifiable intangible assets

 

 

70,740

 

 

102,180

 

 

 

Income tax receivable

 

 

2,205,941

 

 

2,864,993

 

 

 

Prepaid expenses and other assets

 

 

10,897,815

 

 

12,721,610

 

 

 

 

 

 

 

 

 

 

 

 

 

          Total assets

 

$

745,222,470

 

$

797,245,846

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

  Demand

 

$

243,719,526

 

$

234,501,026

 

 

 

  Savings

 

 

28,988,522

 

 

24,498,789

 

 

 

  Large denomination certificates of deposit

 

 

195,429,182

 

 

222,578,449

 

 

 

  Other time

 

 

174,479,477

 

 

207,886,450

 

 

 

          Total deposits

 

 

642,616,707

 

 

689,464,714

 

 

 

Borrowed money

 

 

2,096,189

 

 

11,503,110

 

 

 

Junior subordinated debentures

 

 

10,310,000

 

 

10,310,000

 

 

 

Other liabilities

 

 

7,804,688

 

 

6,454,818

 

 

 

          Total liabilities

 

 

662,827,584

 

 

717,732,642

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.01 par value, 25,000,000 shares authorized;

 

 

 

 

 

 

 

 

 

   11,254,222 shares issued; 9,751,271 shares outstanding

 

 

97,513

 

 

97,513

 

 

 

Additional paid-in capital

 

 

35,815,098

 

 

35,795,586

 

 

 

Retained earnings, substantially restricted

 

 

76,510,081

 

 

74,956,772

 

 

 

Treasury stock, at cost

 

 

(31,967,269)

 

 

(31,967,269)

 

 

 

Accumulated other comprehensive income, net

 

 

1,939,463

 

 

630,602

 

 

 

           Total stockholders' equity

 

 

82,394,886

 

 

79,513,204

 

 

 

 

 

 

 

 

 

 

 

 

 

           Total liabilities and stockholders' equity

 

$

745,222,470

 

$

797,245,846

 

 

 

 

 

 

 

 

 

 

 

 

 

*Derived from audited consolidated financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

First South Bancorp, Inc. and Subsidiary

Consolidated Statements of Operations

(unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31

 

 

December 31

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

  Interest and fees on loans

 

$

8,110,354

 

$

8,971,629

 

$

34,422,548

 

$

38,843,771

  Interest and dividends on investments and deposits

 

 

1,252,652

 

 

956,429

 

 

4,880,827

 

 

4,027,268

           Total interest income

 

 

9,363,006

 

 

9,928,058

 

 

39,303,375

 

 

42,871,039

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

  Interest on deposits

 

 

1,520,771

 

 

2,002,600

 

 

7,189,999

 

 

8,301,551

  Interest on borrowings

 

 

1,485

 

 

82,079

 

 

31,965

 

 

384,161

  Interest on junior subordinated notes

 

 

85,968

 

 

81,884

 

 

334,219

 

 

333,689

           Total interest expense

 

 

1,608,224

 

 

2,166,563

 

 

7,556,183

 

 

9,019,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

7,754,782

 

 

7,761,495

 

 

31,747,192

 

 

33,851,638

Provision for credit losses

 

 

2,639,461

 

 

13,700,000

 

 

10,812,754

 

 

22,151,787

           Net interest income after provision for credit losses

 

 

5,115,321

 

 

(5,938,505)

 

 

20,934,438

 

 

11,699,851

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

  Fees and service charges

 

 

1,512,785

 

 

1,665,795

 

 

6,067,185

 

 

6,864,083

  Loan servicing fees

 

 

191,472

 

 

192,315

 

 

781,881

 

 

747,387

  Gain (loss) on sale of other real estate, net

 

 

(23,947)

 

 

(596,751)

 

 

(68,365)

 

 

(523,173)

  Gain on sale of mortgage loans 

 

 

467,287

 

 

311,169

 

 

864,233

 

 

1,155,690

  Gain on sale of mortgage-backed securities

 

 

262,220

 

 

50,562

 

 

518,614

 

 

1,682,453

  Gain on sale of investment securities

 

 

-

 

 

-

 

 

-

 

 

2,406

  Other  income

 

 

238,403

 

 

296,282

 

 

1,256,477

 

 

915,022

           Total non-interest income

 

 

2,648,220

 

 

1,919,372

 

 

9,420,025

 

 

10,843,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

  Compensation and fringe benefits

 

 

3,557,057

 

 

3,783,196

 

 

14,946,438

 

 

15,583,817

  Federal deposit insurance premiums

 

 

260,914

 

 

289,626

 

 

1,233,377

 

 

1,158,544

  Premises and equipment

 

 

430,140

 

 

425,962

 

 

1,703,121

 

 

1,741,462

  Advertising

 

 

50,066

 

 

36,798

 

 

181,121

 

 

148,380

  Payroll and other taxes

 

 

300,320

 

 

326,526

 

 

1,392,526

 

 

1,392,624

  Data processing

 

 

635,901

 

 

677,019

 

 

2,558,390

 

 

2,576,386

  Amortization of intangible assets

 

 

100,660

 

 

145,659

 

 

542,698

 

 

493,785

  Other real estate owned expense

 

 

977,139

 

 

219,616

 

 

2,040,741

 

 

533,512

  Other

 

 

868,171

 

 

833,855

 

 

3,354,936

 

 

3,096,324

           Total non-interest expense

 

 

7,180,368

 

 

6,738,257

 

 

27,953,348

 

 

26,724,834

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

 

583,173

 

 

(10,757,390)

 

 

2,401,115

 

 

(4,181,115)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

142,007

 

 

(4,259,923)

 

 

847,806

 

 

(1,801,319)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

441,166

 

$

(6,497,467)

 

$

1,553,309

 

$

(2,379,796)

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share data: 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.05

 

$

(0.67)

 

$

0.16

 

$

(0.24)

Diluted earnings per share

 

$

0.05

 

$

(0.67)

 

$

0.16

 

$

(0.24)

Dividends per share

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.49

Average basic shares outstanding

 

 

9,751,271

 

 

9,748,948

 

 

9,751,271

 

 

9,744,870

Average diluted shares outstanding

 

 

9,751,271

 

 

9,748,948

 

 

9,751,271

 

 

9,745,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

First South Bancorp, Inc.

 

 

 

Supplemental Financial Data (Unaudited)

 

 

 

 

 

 

 

Quarterly

 

Year to Date

 

 

 

 

 

12/31/2011

 

9/30/2011

 

6/30/2011

 

3/31/2011

 

12/31/2010

 

12/31/2011

 

12/31/2010

Consolidated balance sheet data:

           (dollars in thousands except per share data)

Total assets

$

745,222

$

768,411

$

784,538

$

791,154

$

797,246

$

745,222

$

797,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable (net):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

$

66,249

$

80,453

$

56,564

$

53,925

$

55,450

$

66,249

$

55,450

Commercial

 

378,823

 

405,712

 

428,141

 

445,930

 

463,155

 

378,823

 

463,155

Consumer

 

72,821

 

74,097

 

76,459

 

79,517

 

79,469

 

72,821

 

79,469

Leases

 

7,309

 

7,972

 

7,825

 

7,829

 

8,000

 

7,309

 

8,000

 

Total loans (net)

$

525,202

$

568,234

$

568,989

$

587,201

$

606,074

$

525,202

$

606,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and investments

$

32,774

$

32,909

$

44,565

$

34,537

$

44,434

$

32,774

$

44,434

Mortgage-backed securities

 

135,834

 

119,764

 

124,539

 

120,565

 

98,883

 

135,834

 

98,883

Premises and equipment

 

11,679

 

11,209

 

10,753

 

10,196

 

9,163

 

11,679

 

9,163

Goodwill

 

4,219

 

4,219

 

4,219

 

4,219

 

4,219

 

4,219

 

4,219

Mortgage servicing rights

 

1,237

 

1,091

 

1,197

 

1,284

 

1,358

 

1,237

 

1,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

$

28,988

$

27,551

$

26,999

$

26,251

$

24,499

$

28,988

$

24,499

Checking

 

243,720

 

243,582

 

240,048

 

237,605

 

234,501

 

243,720

 

234,501

Certificates

 

369,909

 

394,007

 

416,855

 

429,772

 

430,465

 

369,909

 

430,465

 

Total deposits

$

642,617

$

665,140

$

683,902

$

693,628

$

689,465

$

642,617

$

689,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

$

2,096

$

1,986

$

2,349

$

2,363

$

11,503

$

2,096

$

11,503

Junior subordinated debentures

 

10,310

 

10,310

 

10,310

 

10,310

 

10,310

 

10,310

 

10,310

Stockholders' equity

 

82,395

 

82,061

 

80,894

 

79,648

 

79,513

 

82,395

 

79,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated earnings summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

9,363

$

9,861

$

10,188

$

9,891

$

9,928

$

39,303

$

42,871

Interest expense

 

1,608

 

1,852

 

2,010

 

2,086

 

2,166

 

7,556

 

9,019

Net interest income

 

7,755

 

8,009

 

8,178

 

7,805

 

7,762

 

31,747

 

33,852

Provision for credit losses

 

2,640

 

2,643

 

3,080

 

2,450

 

13,700

 

10,813

 

22,152

Noninterest income

 

2,648

 

2,292

 

2,498

 

1,982

 

1,919

 

9,420

 

10,844

Noninterest expense

 

7,180

 

6,999

 

6,988

 

6,786

 

6,738

 

27,953

 

26,725

Income tax expense (benefit)

 

142

 

256

 

226

 

225

 

(4,260)

 

848

 

(1,801)

Net income (loss)

$

441

$

403

$

382

$

326

$

(6,497)

$

1,553

$

(2,380)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

0.05

$

0.04

$

0.04

$

0.03

$

(0.67)

$

0.16

$

(0.24)

Diluted earnings (loss) per share

$

0.05

$

0.04

$

0.04

$

0.03

$

(0.67)

$

0.16

$

(0.24)

Dividends per share

$

0.00

$

0.00

$

0.00

$

0.00

$

0.00

$

0.00

$

0.49

Book value per share

$

8.45

$

8.42

$

8.30

$

8.17

$

8.15

$

8.45

$

8.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average basic shares

 

9,751,271

 

9,751,271

 

9,751,271

 

9,751,271

 

9,748,948

 

9,751,271

 

9,744,870

Average diluted shares

 

9,751,271

 

9,751,271

 

9,751,271

 

9,751,271

 

9,748,948

 

9,751,271

 

9,745,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2011

 

9/30/2011

 

6/30/2011

 

3/31/2011

 

12/31/2010

 

12/31/2011

 

12/31/2010

 

 

 

 

 

 

 

           (dollars in thousands except per share data)

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield on average earning assets

 

5.44%

 

5.64%

 

5.78%

 

5.59%

 

5.51%

 

5.61%

 

5.81%

Cost of funds

 

0.96%

 

1.08%

 

1.14%

 

1.18%

 

1.21%

 

1.09%

 

1.26%

Net interest spread

 

4.48%

 

4.56%

 

4.64%

 

4.41%

 

4.30%

 

4.52%

 

4.55%

Net interest margin/average earning assets

 

4.51%

 

4.58%

 

4.64%

 

4.41%

 

4.31%

 

4.54%

 

4.59%

Earning assets to total assets

 

91.09%

 

90.47%

 

88.61%

 

89.85%

 

89.94%

 

91.09%

 

89.94%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

0.23%

 

0.21%

 

0.19%

 

0.16%

 

-3.21%

 

0.20%

 

-0.29%

Return on average equity (annualized)

 

2.13%

 

1.97%

 

1.90%

 

1.63%

 

-30.31%

 

1.91%

 

-2.74%

Efficiency ratio 

 

68.95%

 

67.77%

 

65.38%

 

69.25%

 

69.52%

 

67.83%

 

59.72%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

$

757,905

$

774,383

$

791,644

$

794,615

$

810,459

$

757,905

$

810,459

Average earning assets

$

688,457

$

698,984

$

704,792

$

707,982

$

727,718

$

688,457

$

727,718

Average equity

$

82,708

$

81,757

$

80,517

$

79,978

$

85,746

$

82,708

$

85,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity/Assets

 

11.06%

 

10.68%

 

10.31%

 

10.07%

 

9.97%

 

11.06%

 

9.97%

Tangible Equity/Assets

 

10.48%

 

10.12%

 

9.76%

 

9.52%

 

9.43%

 

10.48%

 

9.43%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset quality data and ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans on nonaccrual status:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Earning

$

10,601

$

3,179

$

3,853

$

4,954

$

5,143

$

10,601

$

5,143

 

  Non-Earning

$

11,007

$

15,107

$

15,657

$

11,769

$

9,150

$

11,007

$

9,150

 

     Total Non-Accrual Loans

$

21,608

$

18,286

$

19,510

$

16,723

$

14,293

$

21,608

$

14,293

 

Nonaccrual restructured loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Past Due TDRs

$

9,170

$

12,568

$

11,228

$

15,024

$

12,407

$

9,170

$

12,407

 

   Current TDRs

$

12,247

$

11,172

$

10,421

$

8,780

$

14,566

$

12,247

$

14,566

 

      Total TDRs

$

21,417

$

23,740

$

21,649

$

23,804

$

26,973

$

21,417

$

26,973

Total loans on nonaccrual status

$

43,025

$

42,026

$

41,159

$

40,527

$

41,266

$

43,025

$

41,266

Other real estate owned 

$

17,005

$

12,886

$

11,387

$

12,069

$

11,616

$

17,005

$

11,616

Total nonperforming assets

$

60,030

$

54,912

$

52,546

$

52,596

$

52,882

$

60,030

$

52,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing restructured loans on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

accrual status

$

25,388

$

19,820

$

22,831

$

16,055

$

31,334

$

25,388

$

31,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

$

15,194

$

18,307

$

18,667

$

19,320

$

18,830

$

15,194

$

18,830

Allowance for unfunded loan commitments

$

254

$

256

$

251

$

231

$

237

$

254

$

237

Allowance for credit losses

$

15,448

$

18,563

$

18,918

$

19,551

$

19,067

$

15,448

$

19,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses to loans

 

2.81%

 

3.12%

 

3.17%

 

3.18%

 

3.01%

 

2.81%

 

3.01%

Allowance for unfunded loan commitments 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to unfunded commitments

 

0.38%

 

0.39%

 

0.36%

 

0.30%

 

0.30%

 

0.38%

 

0.30%

Allowance for credit losses to loans

 

2.85%

 

3.16%

 

3.21%

 

3.22%

 

3.04%

 

2.85%

 

3.04%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) 

$

5,752

$

3,018

$

3,713

$

1,966

$

3,407

$

14,449

$

16,829

Net charge-offs (recoveries) to loans 

 

1.10%

 

0.53%

 

0.65%

 

0.32%

 

0.54%

 

2.75%

 

2.78%

Nonaccrual loans to loans

 

8.19%

 

7.40%

 

7.23%

 

6.90%

 

6.81%

 

8.19%

 

6.81%

Nonperforming assets to assets

 

8.06%

 

7.15%

 

6.69%

 

6.65%

 

6.63%

 

8.06%

 

6.63%

Loans to deposits

 

84.26%

 

88.35%

 

86.10%

 

87.63%

 

90.83%

 

84.26%

 

90.83%

Loans to assets

 

72.66%

 

76.48%

 

75.06%

 

76.82%

 

78.55%

 

72.66%

 

78.55%

Loans serviced for others

$

319,363

$

302,307

$

314,220

$

317,816

$

318,218

$

319,363

$

318,218

 

 

 

 

 

 

SOURCE First South Bancorp, Inc.



RELATED LINKS
http://www.firstsouthnc.com

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