FIRST SOUTH BANCORP, INC. 
By WASHINGTON, N.C., Jan. 22, 2014 /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, 2013.
In February 2013, the Company executed a bulk sale of problem loans. The sale resulted in a pre-tax loss of $17.6 million which negatively impacted the financial performance for the three and twelve-month periods ended December 31, 2012. Additionally, the Company recognized a $5.9 million pre-tax valuation adjustment against other real estate owned (OREO) which impacted the aforementioned periods. The aggregate tax adjusted impact of these two transactions resulted in a $14.0 million loss. The transactions reduced on-going expenses related to problem loans and OREO which was a primary driver of earnings improvement for the three and twelve-month periods ended December 31, 2013 discussed below.
Net income for the 2013 fourth quarter increased to $1.1 million, or $0.12 per diluted common share, compared to a net operating loss of $(12.9) million, or $(1.32) per diluted common share for the 2012 fourth quarter. Net income for the year ended 2013 increased to $6.0 million, or $0.62 per diluted common share, compared to a net loss of $(11.0) million, or $(1.13) per diluted common share for the year ended 2012.
Bruce Elder, President and CEO, commented, "During 2013, the Company made significant strides in reducing non-performing assets and committing resources to grow and develop customer relationships. Over the second half of the year, we grew our loan portfolio by approximately $16.9 million and increased non-maturity deposits by $17.9 million. We have introduced new deposit products and electronic delivery channels for both retail and business clients. Strengthening our mobile banking and commercial cash management capabilities, as well as creating a corporate culture designed to consistently add value, will allow First South Bank to focus on new customer acquisition. Looking forward to 2014, we intend to focus our efforts on growing quality earning assets, becoming more operationally efficient and positioning our balance sheet for an impending rising rate environment. Repositioning the balance sheet structure will result in continued pressure on net interest margin, but should prove beneficial in the next economic cycle."
Net Interest Income
Net interest income for the fourth quarter of 2013 was $6.5 million, down from $7.4 million earned for the comparative 2012 fourth quarter. Net interest income for the year ended 2013 was $26.8 million, down from the $29.9 million reported in the comparative year ended 2012. The tax equivalent net interest margin declined by 25 basis points to 4.20% for the 2013 fourth quarter from 4.45% for the comparative 2012 fourth quarter. The tax equivalent net interest margin for the year ended 2013 declined by 9 basis points to 4.34%, from 4.43% for the comparative year ended 2012.
The year-over-year reduction in net interest income and the net interest margin is due primarily to a change in the level and composition of our earning asset base. Total average earning assets for the year ended 2013 were $633.7 million, down $33.4 million compared with total average earning assets of $667.1 million for 2012, due to the bulk sale of problem loans. To improve our asset liability risk profile, the Company executed a number of strategic transactions designed to protect its balance sheet and future earnings stream. One such measure was to sell approximately $32.5 million of low coupon mortgage backed securities due to the sensitivity of their values to rising interest rates. A portion of the proceeds from this sale were redeployed into investment securities that will outperform in a rising interest rate environment, with the residual funds retained in cash to be redeployed into future loan growth or other investments where returns will improve as rates increase. The immediate impact of this strategy was a reduction in our interest income and yield from our investment portfolio. However, our balance sheet is better poised to respond to increases in interest rates and the Company is able to take advantage of future opportunities as they present themselves.
Asset Quality and Provisions for Loan Losses
Asset quality metrics continue to improve. Total nonperforming assets were $15.3 million, or 2.3% of total assets at December 31, 2013, compared to $34.9 million or 4.9% of total assets at December 31, 2012. Total loans in non-accrual status declined to $5.6 million at December 31, 2013, from $21.3 million at December 31, 2012. Our level of OREO declined to $9.4 million at December 31, 2013 compared to $12.9 million at December 31, 2012.
The allowance for loan and lease losses (ALLL) was $7.6 million at December 31, 2013 and represented 1.69% of loans and leases held for investment, compared to $7.9 million at December 31, 2012, or 1.77% of loans and leases held for investment. During the 2013 fourth quarter, there were $782,000 of net charge offs, compared to $25.8 million for the 2012 third quarter. For the year ended 2013, there were $1.3 million of net charge offs compared to $30.6 million for the year ended 2012. The Company recorded $685,000 provision for credit losses in the 2013 fourth quarter compared to $18.7 million recorded in the 2012 fourth quarter. During the year ended 2013, the Company recorded $1.1 million of provision for credit losses compared to $23.3 million recorded in the year ended 2012. Management believes the ALLL remains adequate.
Non-Interest Income
Total non-interest income was $2.3 million for the 2013 fourth quarter, compared to $2.6 million for the 2012 fourth quarter. Fees and service charges on deposits of $1.0 million for the 2013 fourth quarter were relatively unchanged when compared to $1.1 million for the 2012 fourth quarter. We anticipate additional service charge revenue from deposits as we focus on growing our deposit base through the new product offerings and customer acquisition. Fees on loans and loan servicing fees were $524,000 for the 2013 fourth quarter compared to $584,000 for the 2012 fourth quarter.
Net gains from sales of mortgage loans held for sale was $148,000 for the 2013 fourth quarter compared to $973,000 for the 2012 third quarter. Mortgage loan originations during the second half of 2013 slowed as new purchase activity has not fully replaced the reduction in refinance activity. The future levels of gains on sales of mortgage loans and loan servicing fees are dependent on the volume of new mortgage loan originations. Mortgage loan origination in 2014 will be dependent on housing activity in our markets, the level of mortgage loan interest rates and our marketing efforts. Net gains from sales of OREO increased to $206,000 for the 2013 fourth quarter compared to net loss on sale of $396,000 for the 2012 fourth quarter.
For the year ended 2013, total non-interest income was $10.4 million compared to $10.8 million reported in the year ended 2012. Fees and service charges on deposits remained relatively consistent at $4.2 million for the year end 2013 compared to $4.3 million for the year ended 2012. Fees on loans and loan servicing fees increased to $2.6 million for the year ended 2013, from $2.1 million for the year ended 2012.
Net gains recognized from the sale of mortgage loans held for sale and investment securities for the year ended 2013 were $1.3 million and $548,000, respectively, compared to $2.4 million and $1.5 million, respectively, for the year ended 2012. Net gains from the sale of OREO was $609,000 for the year ended 2013 compared to a net loss of $528,000 reported for the year ended 2012. Total core non-interest income, excluding net gains and losses from securities and OREO sales, decreased to $9.3 million for the current year compared to $9.8 million for the prior year primarily due to the decline in mortgage loan originations and sales.
Non-Interest Expense
Total non-interest expense declined significantly to $6.4 million for the 2013 fourth quarter compared to $12.3 million for the 2012 fourth quarter. For the year ended 2013, total non-interest expense also declined significantly to $27.0 million from $35.6 million reported in the year ended 2012. This was primarily attributable to a significant reduction in OREO valuation and maintenance expenses, as well as lower compensation and employee benefits expenses.
Compensation and benefit expenses, the largest component of non-interest expenses, declined to $3.6 million for the 2013 fourth quarter from to $3.8 million for the comparative 2012 fourth quarter. For the year ended 2013, compensation expense declined to $15.1 million from $16.7 million reported in the year ended 2012. The Bank will continue to manage staffing levels to ensure we meet the ongoing needs of our customers and to support our future growth.
Data processing costs increased to $563,000 and $2.3 million for the three and twelve-month periods end December 31, 2013, respectively, from $320,000 and $1.9 million for the respective prior year periods, reflecting the expiration of favorable initial pricing received from a core data processing system conversion completed in March 2012.
Expenses attributable to valuation adjustments, ongoing maintenance, and property taxes for OREO properties declined to $162,000 for the 2013 fourth quarter from $5.9 million for the comparative 2012 fourth quarter. For the year ended 2013, total OREO related expense declined to $1.2 million, from $8.8 million reported in the comparative year ended 2012.
FDIC insurance premiums declined by 38.0% and 13.9%, respectively, for the 2013 fourth quarter and year ended to $150,000 and $850,000, from $242,000 and $987,000 for the respective 2012 fourth quarter and year ended, reflecting a reduction in the deposit insurance assessment calculation base.
Premises and equipment, advertising, amortization of intangibles and other expense in aggregate was relatively consistent during the respective reporting periods.
Balance Sheet
Total assets were $674.7 million at December 31, 2013, down from $707.7 million at December 31, 2012. Our total assets were reduced and our asset mix changed as proceeds from the bulk loan transaction and the sale of mortgage loans held for sale were used to pay off maturing FHLB advances, purchase investment securities and manage nonrenewal of higher costing certificates of deposit.
Loans and leases held for investment increased by $10.6 million during the quarter ended December 31, 2013 from $440.3 million at September 30, 2013. This reflects the second consecutive quarterly increase in loans and leases held for investment. As a result of this increase, total loans and leases held for investment were $451.0 million at December 31, 2013 compared to $441.8 million at December 31, 2012.
Investment securities and interest-earning deposits with banks was $163.2 million at December 31, 2013, compared to $168.0 million at December 31, 2012. During 2013, the Bank implemented a strategy to add defensive investments to the portfolio. While these bonds have a lower current yield than our legacy portfolio, they will help insulate earnings in a rising rate environment. In addition, during 2013 the Bank purchased $10.0 million of bank-owned life insurance ("BOLI"). The investment returns from the BOLI will be utilized to recover a portion of the cost of providing benefit plans to our employees.
Total deposits declined to $585.7 million at December 31, 2013 from $600.9 million at December 31, 2012. However, non-maturity deposits increased by $32.3 million to $337.5 million at December 31, 2013, from $305.2 million at December 31, 2012, partially offsetting a $47.5 million decline in certificates of deposits. Certificates of deposit declined to $248.2 million or 42.4% of total deposits at December 31, 2013 from $295.7 million, or 49.2% of total deposits at December 31, 2012.
All of the $16.5 million of short-term FHLB advances outstanding at December 31, 2012 matured and were repaid with proceeds received from loan sales. These short-term borrowings were used to fund the mortgage loans held for sale portfolio at prior year-end.
Stockholders' equity increased to $74.9 million at December 31, 2013, from $74.7 million at December 31, 2012. This increase primarily reflects the $6.0 million of net income earned for the year ended December 30, 2013, net of a $5.1 million adjustment in accumulated other comprehensive income resulting from the mark-to-market of the available-for-sale securities portfolio and the $729,000 used to acquire 97,388 shares of the Company's common stock pursuant to a previously announced repurchase plan.
Effective as of October 31, 2013, the Company retired 1,502,951 shares of its common stock that were being held as Treasury Stock. The retired shares were returned to authorized/unissued shares. The retirement of these treasury shares had no effect on previously reported net income, total assets or stockholders' equity.
The tangible equity to assets ratio increased to 10.47% at December 30, 2013, from 9.95% at December 31, 2012. There were 9,652,883 common shares outstanding at December 31, 2013, compared to 9,751,271 shares outstanding at December 31, 2012, reflecting the net effect of shares purchased through the Company's previously announced stock repurchase program. Tangible book value per common share increased to $7.32 at December 31, 2013, from $7.22 at December 31, 2012.
Key Performance Ratios
Some of our key performance ratios are the return on average assets (ROA), the return on average equity (ROE) and the efficiency ratio. ROA increased to 0.67% for the 2013 fourth quarter from (7.22%) for the comparative 2012 fourth quarter. The Company's ROE increased to 5.95% for the 2013 fourth quarter from (60.76%) for the comparative 2012 third quarter. The efficiency ratio (noninterest expenses as a percentage of net interest income plus noninterest income) improved to 73.56% for the 2013 fourth quarter from 123.81% for the comparative 2012 fourth quarter. The efficiency ratio measures the proportion of net operating revenues that are absorbed by overhead expenses.
ROA increased to 0.87% for the year ended 2013 from (1.50%) for the comparative year ended 2012. ROE increased to 7.84% for the year ended 2013 from (12.87%) for the comparative year ended 2012. The efficiency ratio improved to 72.61% for the year ended 2013 from 87.30% for the comparative year ended 2012.
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 and eastern North Carolina.
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".
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. Certain amounts in the unaudited Consolidated Statements of Operations for the Three Months and Year Ended December 31, 2012, and in prior quarterly and prior year to date Supplemental Financial Data, have been reclassified to conform with the presentation as of and for the periods ended December 31, 2013. The reclassifications had no effect on previously reported net income or stockholders' equity.
(NASDAQ: FSBK)
For more information contact:
Bruce Elder (CEO) (252) 940-4936
Scott McLean (CFO) (252) 940-5016
Website: www.firstsouthnc.com
First South Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
December 31, December 31,
2013 2012
---- ----
Assets (unaudited) (*)
Cash
and
due
from
banks $11,816,071 $9,233,819
Interest-
earning
deposits
with
banks 12,419,244 3,132,570
Investment
securities
available
for
sale,
at
fair
value 150,300,079 164,838,012
Investment
securities
held
to
maturity 506,176 -
Loans
held
for
sale:
Mortgage
loans 2,992,017 20,287,343
Other
loans - 24,438,107
--- ----------
Total
loans
held
for
sale 2,992,017 44,725,450
Loans
and
leases
held
for
investment 450,960,277 441,847,019
Allowance
for
loan
and
lease
losses (7,609,467) (7,860,195)
---------- ----------
Net
loans
and
leases
held
for
investment 443,350,810 433,986,824
Premises
and
equipment,
net 11,759,521 12,233,153
Other
real
estate
owned 9,353,835 12,892,519
Federal
Home
Loan
Bank
stock,
at cost 848,800 1,859,200
Accrued
interest
receivable 2,334,944 2,408,979
Goodwill 4,218,576 4,218,576
Mortgage
servicing
rights 1,219,623 1,261,355
Identifiable
intangible
assets 7,860 39,300
Income
tax
receivable 2,901,062 10,785,272
Bank-
owned
life
insurance 10,227,795 -
Prepaid
expenses
and
other
assets 10,465,530 6,098,423
---------- ---------
Total
assets $674,721,943 $707,713,452
============ ============
Liabilities
and
Stockholders'
Equity
Deposits:
Non-
interest
bearing
demand $96,445,049 $92,888,095
Interest
bearing
demand 171,548,658 181,774,772
Savings 69,542,654 30,570,259
Large
denomination
certificates
of
deposit 123,492,907 148,838,963
Other
time 124,674,588 146,828,942
----------- -----------
Total
deposits 585,703,856 600,901,031
Borrowed
money - 16,500,000
Junior
subordinated
debentures 10,310,000 10,310,000
Other
liabilities 3,849,944 5,349,368
--------- ---------
Total
liabilities 599,863,800 633,060,399
----------- -----------
Common
stock,
$.01
par
value,
25,000,000
shares
authorized;
9,653,883
and
11,254,222
shares
issued;
9,653,883
and
9,751,271
shares
outstanding,
respectively 96,539 97,513
Additional
paid-
in
capital 35,809,397 35,811,804
Retained
earnings,
substantially
restricted 38,849,326 65,532,960
Treasury
stock,
at
cost - (31,967,269)
Accumulated
other
comprehensive
income 102,881 5,178,045
Total
stockholders'
equity 74,858,143 74,653,053
---------- ----------
Total
liabilities
and
stockholders'
equity $674,721,943 $707,713,452
(*)
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,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
Interest income:
Interest and fees
on loans $5,991,109 $6,826,558 $24,706,151 $29,168,282
Interest
on
investments
and
deposits 1,131,670 1,385,184 4,965,975 5,425,737
--------- --------- --------- ---------
Total interest income 7,122,779 8,211,742 29,672,126 34,594,019
--------- --------- ---------- ----------
Interest expense:
Interest
on
deposits 591,220 752,645 2,499,693 4,325,497
Interest
on
borrowings - 6,502 7,058 10,997
Interest
on
junior
subordinated
notes 80,841 88,773 339,572 363,754
------ ------ ------- -------
Total interest expense 672,061 847,920 2,846,323 4,700,248
------- ------- --------- ---------
Net interest income 6,450,718 7,363,822 26,825,803 29,893,771
Provision for credit losses 685,000 18,674,682 1,085,000 23,251,647
------- ---------- --------- ----------
Net interest income (loss) after
provision for credit losses 5,765,718 (11,310,860) 25,740,803 6,642,124
--------- ----------- ---------- ---------
Non-interest income:
Deposit
fees
and
service
charges 1,046,131 1,095,551 4,204,821 4,253,196
Loan
fees
and
charges 317,586 358,856 1,757,610 1,257,110
Loan
servicing
fees 206,034 225,091 834,027 832,443
Gain
(loss)
on
sale
of
other
real
estate,
net 206,107 (396,324) 609,173 (528,521)
Gain
on
sale
of
mortgage
loans 148,431 973,257 1,338,119 2,400,614
Gain
on
sale
of
investment
securities - - 548,074 1,546,883
Other
income 382,216 316,683 1,115,970 1,054,860
------- ------- --------- ---------
Total non-interest income 2,306,505 2,573,114 10,407,794 10,816,585
--------- --------- ---------- ----------
Non-interest expense:
Compensation
and
fringe
benefits 3,584,537 3,750,949 15,114,629 16,678,542
Federal
deposit
insurance
premiums 149,854 241,592 849,974 987,139
Premises
and
equipment 745,844 708,787 2,990,333 2,800,386
Advertising 123,128 54,742 289,419 211,524
Data
processing 562,830 320,236 2,317,765 1,878,517
Amortization
of
intangible
assets 120,831 115,688 478,404 456,575
Other
real
estate
owned
expense 161,746 5,882,371 1,166,457 8,783,427
Other 992,981 1,236,276 3,829,546 3,777,019
------- --------- --------- ---------
Total non-interest expense 6,441,751 12,310,641 27,036,527 35,573,129
--------- ---------- ---------- ----------
Income (loss) before income tax
expense 1,630,472 (21,048,387) 9,112,070 (18,114,420)
Income tax expense (benefit) 486,273 (8,162,654) 3,099,975 (7,137,299)
------- ---------- --------- ----------
NET INCOME (LOSS) $1,144,199 $(12,885,733) $6,012,095 $(10,977,121)
Per share data:
Basic earnings (loss) per
share $0.12 $(1.32) $0.62 $(1.13)
Diluted earnings (loss) per
share $0.12 $(1.32) $0.62 $(1.13)
Average basic shares outstanding 9,727,175 9,751,271 9,745,154 9,751,271
Average diluted shares
outstanding 9,737,495 9,751,271 9,751,737 9,751,271
First South Bancorp, Inc. Supplemental Financial Data (Unaudited)
Quarter to Date Year to Date
--------------- ------------
12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 12/31/2013 12/31/2012
---------- --------- --------- --------- ---------- ---------- ----------
(dollars in thousands except per share data)
Consolidated balance sheet data:
--------------------------------
Total assets $674,722 $682,015 $680,082 $690,958 $707,713 $674,722 $707,713
Loans held for sale: $2,992 $9,183 $13,746 $3,292 $44,725 $2,992 $44,725
Loans held for investment:
Mortgage $69,006 $68,125 $76,751 $74,162 $75,544 $69,006 $75,544
Commercial 305,160 296,218 283,936 288,715 292,146 305,160 292,146
Consumer 68,615 68,537 66,637 67,723 68,444 68,615 68,444
Leases 8,179 7,467 6,722 5,924 5,713 8,179 5,713
Total loans held for
investment 450,960 440,347 434,046 436,524 441,847 450,960 441,847
Allowance for loan and lease losses (7,609) (7,707) (8,604) (8,567) (7,860) (7,609) (7,860)
------ ------ ------ ------ ------ ------ ------
Net loans held for investment $443,351 $432,640 $425,442 $427,957 $433,987 $443,351 $433,987
Cash & interest bearing deposits $24,235 $37,617 $23,148 $35,384 $12,366 $24,235 $12,366
Investment securities 150,806 149,337 162,336 176,320 164,838 150,806 164,838
Premises and equipment 11,760 11,759 11,879 12,003 12,233 11,760 12,233
Goodwill 4,219 4,219 4,219 4,219 4,219 4,219 4,219
Mortgage servicing rights 1,220 1,268 1,271 1,357 1,261 1,220 1,261
Deposits:
Savings $69,543 $60,576 $49,173 $37,871 $30,570 $69,543 $30,570
Checking 267,994 272,482 270,506 278,899 274,663 267,994 274,663
Certificates 248,167 258,573 270,149 282,846 295,668 248,167 295,668
------- ------- ------- ------- ------- ------- -------
Total deposits $585,704 $591,631 $589,828 $599,616 $600,901 $585,704 $600,901
Borrowings $0 $0 $0 $0 $16,500 $0 $16,500
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310 10,310 10,310
Stockholders' equity 74,858 75,028 73,888 75,468 74,653 74,858 74,653
Consolidated earnings summary:
------------------------------
Interest income $7,123 $7,220 $7,435 $7,894 $8,212 $29,672 $34,594
Interest expense 672 694 716 764 848 2,846 4,700
--- --- --- --- --- ----- -----
Net interest income 6,451 6,526 6,719 7,130 7,364 26,826 29,894
Provision for credit losses 685 0 0 400 18,675 1,085 23,252
Noninterest income 2,306 2,706 2,920 2,476 2,573 10,408 10,817
Noninterest expense 6,442 6,928 6,910 6,757 12,311 27,037 35,573
Income tax expense 486 767 964 883 (8,163) 3,100 (7,137)
--- --- --- --- ------ ----- ------
Net income $1,144 $1,537 $1,765 $1,566 $(12,886) $6,012 $(10,977)
====== ====== ====== ====== ======== ====== ========
Per Share Data:
---------------
Basic earnings per share $0.12 $0.16 $0.18 $0.16 $(1.32) $0.62 $(1.13)
Diluted earnings per share $0.12 $0.16 $0.18 $0.16 $(1.32) $0.62 $(1.13)
Book value per share $7.68 $7.69 $7.58 $7.74 $7.66 $7.68 $7.69
Average basic shares 9,727,175 9,751,271 9,751,271 9,751,271 9,751,271 9,745,154 9,751,271
Average diluted shares 9,737,495 9,757,881 9,757,338 9,751,972 9,751,271 9,751,737 9,751,271
First South Bancorp, Inc. Supplemental Financial Data (Unaudited)
Quarter to Date Year to Date
--------------- ------------
12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 12/31/2013 12/31/2012
---------- --------- --------- --------- ---------- ---------- ----------
(dollars in thousands except per share data)
Performance ratios (tax equivalent):
------------------------------------
Yield on average earning assets 4.63% 4.69% 4.80% 5.05% 4.96% 4.79% 5.12%
Cost of interest bearing liabilities 0.53% 0.54% 0.56% 0.59% 0.64% 0.56% 0.86%
---- ---- ---- ---- ---- ---- ----
Net interest spread 4.10% 4.15% 4.24% 4.46% 4.32% 4.23% 4.26%
Net interest margin 4.20% 4.25% 4.34% 4.57% 4.45% 4.34% 4.43%
Avg earning assets to total avg assets 91.84% 91.66% 92.40% 92.19% 91.50% 91.48% 91.50%
Return on average assets (annualized) 0.67% 0.90% 1.03% 0.91% (7.22%) 0.87% (1.5%)
Return on average equity (annualized) 5.96% 8.18% 9.22% 8.02% (60.76%) 7.84% (12.87%)
Efficiency ratio 73.56% 75.05% 71.69% 70.34% 123.81% 72.61% 87.30%
Average assets $681,690 $680,741 $688,897 $701,880 $714,377 $688,226 $732,091
Average earning assets $626,050 $623,953 $636,511 $647,061 $652,106 $629,560 $667,079
Average equity $76,231 $74,569 $76,754 $79,178 $84,830 $76,669 $85,295
Equity/Assets 11.09% 11.00% 10.86% 10.92% 10.55% 11.09% 10.55%
Tangible Equity/Assets 10.47% 10.38% 10.24% 10.31% 9.95% 10.47% 9.95%
Asset quality data and ratios:
------------------------------
Loans on nonaccrual status:
Nonaccrual loans
Earning $683 $1,459 $1,429 $1,658 $2,972 $683 $2,972
Non-Earning 1,331 2,649 4,130 2,629 6,686 1,331 6,686
Total Non-Accrual Loans $2,014 $4,108 $5,559 $4,287 $9,658 $2,014 $9,658
Nonaccrual restructured
loans
Past Due TDRs $1,821 $1,336 $990 $221 $4,231 $1,821 $4,231
Current TDRs 1,739 1,677 818 832 7,451 1,739 7,451
Total TDRs $3,560 $3,013 $1,808 $1,053 $11,682 $3,560 $11,682
Total loans on nonaccrual status $5,574 $7,121 $7,367 $5,340 $21,340 $5,574 $21,340
Loans >90 days past due, still accruing 420 544 762 237 676 420 676
Other real estate owned 9,354 8,996 9,069 11,328 12,893 9,354 12,893
----- ----- ----- ------ ------ ----- ------
Total nonperforming assets $15,348 $16,661 $17,198 $16,905 $34,909 $15,348 $34,909
======= ======= ======= ======= ======= ======= =======
Allowance for loan and lease losses $7,609 $7,707 $8,604 $8,567 $7,860 $7,609 $7,860
Allowance for loan and lease losses to loans held for investment 1.69% 1.75% 1.98% 1.96% 1.77% 1.69% 1.77%
Net charge-offs (recoveries) $782 $898 $(37) $(308) $25,822 $1,336 $30,585
Net charge-offs (recoveries) to total loans 0.17% 0.20% (0.01%) (0.07%) 5.31% 0.29% 6.29%
Nonaccrual loans to total loans 1.23% 1.58% 1.65% 1.21% 4.39% 1.23% 4.39%
Nonperforming assets to assets 2.27% 2.44% 2.53% 2.45% 4.93% 2.27% 4.93%
Total loans to deposits 77.51% 75.98% 75.92% 73.35% 80.97% 77.51% 80.97%
Total loans to assets 67.28% 65.91% 65.84% 63.65% 68.75% 67.28% 68.75%
Loans serviced for others $325,441 $325,833 $319,124 $330,280 $313,823 $325,441 $313,823
SOURCE First South Bancorp, Inc.
