FIRST SOUTH BANCORP, INC. 
By WASHINGTON, N.C., Jan. 18, 2011 /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, 2010.
The Company reported a net operating loss of $6.5 million for the 2010 fourth quarter, compared to net income of $1.0 million for the linked 2010 third quarter, and $1.5 million for the comparative 2009 fourth quarter. The net loss per diluted common share was $0.67 for the 2010 fourth quarter, compared to net income per diluted common share of $0.10 for the linked 2010 third quarter and $0.16 for the comparative 2009 fourth quarter.
For the year ended December 31, 2010 the Company reported a net operating loss of $2.4 million, compared to net income of $7.0 million for the year ended December 31, 2009. The net loss per diluted common share was $0.24 for 2010, compared to net income per diluted common share of $0.72 for 2009.
"In the 2010 fourth quarter, we completed an intensive evaluation of the credit quality of the Bank's loan portfolio and foreclosed properties, and are boosting our loan loss reserves by a significant amount. In light of the continued economic uncertainty, we recognize the financial stress some of our borrowers are facing. We feel it is prudent and wise to take a pro-active stance with regards to credit risk management and provision accordingly, so that we can get these problems behind us and move forward in a more positive manner," said Tom Vann, President and CEO.
"We are moving aggressively from a position of financial strength to deal with our credit quality. Subsequent to these necessary provision charges, our capital levels will remain in excess of the regulatory requirements to be well capitalized. This will allow the Company to move ahead in a substantive way, and hopefully expected retained earnings over the coming years will recover much of the capital expended by taking these charges," added Mr. Vann.
Asset Quality
Non-accrual loans increased to $41.3 million (6.8% of total loans) at December 31, 2010, from $19.2 million (3.0% of total loans) at September 30, 2010. Other real estate owned increased to $11.6 million at December 31, 2010 from $8.6 million at September 30, 2010, reflecting foreclosure activity net of sales of certain real estate properties during the fourth quarter. Total nonperforming assets increased to $52.9 million (6.6% of total assets) at December 31, 2010, from $27.8 million (3.4% of total assets) at September 30, 2010. "While we are encouraged that property values appear to be stabilizing, we will continue to monitor these values and mitigate nonperforming assets as quickly as feasible," said Mr. Vann.
The Bank recorded $13.7 million of provisions for credit losses in the 2010 fourth quarter, compared to $4.0 million in the linked 2010 third quarter and $2.7 million in the comparative 2009 fourth quarter. Credit loss provisions were necessary to replenish net charge-offs and strengthen the allowance for credit losses at levels that management believes is adequate to absorb probable losses in the loan portfolio. The allowance for loan and lease losses (ALLL) increased to $18.8 million at December 31, 2010 (3.0% of total loans), from $8.6 million at September 30, 2010 (1.3% of total loans). Net charge offs were $3.4 million in the 2010 fourth quarter, compared to $3.3 million in the linked 2010 third quarter and $1.5 million in the comparative 2009 fourth quarter.
Bill Wall, executive vice president and chief financial officer stated, "We have taken a conservative posture in our provisioning for credit losses as we continue to aggressively manage 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 allowance for credit losses".
Net Interest Income
Net interest income declined to $7.8 million for the 2010 fourth quarter, from $8.7 million for the linked 2010 third quarter and $8.9 million the comparative 2009 fourth quarter. The decline in net interest income in the current quarter has been influenced by the increased level of non-accrual loans. The net interest margin on average earning assets declined similarly to 4.3% for the 2010 fourth quarter, from 4.7% for the linked 2010 third quarter and 4.6% for the comparative 2009 fourth quarter.
Non-Interest Income
Total non-interest income declined to $1.9 million for the 2010 fourth quarter, from $3.4 million for the linked 2010 third quarter and $2.5 million for the comparative 2009 fourth quarter. Revenue from loan and deposit service offerings (loan fees, deposit fees and service charges and servicing fee income) remained relatively consistent at $1.9 million in the 2010 fourth quarter, $2.0 million in the linked 2010 third quarter and $2.1 million in the comparative 2009 fourth quarter.
Net gains recognized from mortgage loan sales declined to $311,000 in the 2010 fourth quarter, from $479,000 in the linked 2010 third quarter and $262,000 in the comparative 2009 fourth quarter. Net gains recognized from investment and mortgage-backed securities sales declined to $51,000 in the 2010 fourth quarter, from $696,000 in the linked 2010 third quarter and none in the comparative 2009 fourth quarter.
In its efforts of mitigating nonperforming assets, the Bank recognized $597,000 of net losses on the sale of other real estate properties during the 2010 fourth quarter, compared to $40,000 of net gains in the linked 2010 third quarter and $39,000 of net losses in the comparative 2009 fourth quarter.
Non-Interest Expense
Total non-interest expense was $6.7 million for both the 2010 fourth quarter and the linked 2010 third quarter, compared to $6.3 million for 2009 fourth quarter.
The largest component of non-interest expense, compensation and fringe benefits, declined to $3.8 million in the 2010 fourth quarter, from $4.0 million in the linked 2010 third quarter, and $3.6 million in the comparative 2009 fourth quarter, reflecting the Bank's efforts of managing its human resources cost.
Other noninterest expenses including FDIC insurance premiums, premises and equipment, advertising, data processing, repairs and maintenance, office supplies, professional fees, taxes and insurance, etc., remained relatively consistent during the respective periods.
As a result of the 2010 fourth quarter pre-tax operating loss, the Company recognized a $4.3 million income tax benefit, compared to income tax expense of $424,000 in the linked 2010 third quarter and $872,000 in the comparative 2009 fourth quarter.
Balance Sheet
Total assets declined to $797.2 million at December 31, 2010, from $829.9 million at December 31, 2009. Total loans declined to $606.1 million at December 31, 2010 from $658.7 million at December 31, 2009, reflecting a combination of principal repayments, sales, securitizations and the volume of loans originated during 2010. Mortgage-backed securities increased to $98.9 million at December 31, 2010, from $97.2 million at December 31, 2009, reflecting the net of sales and securitization of certain mortgage loans during 2010. Cash and investments increased to $44.4 million at December 31, 2010, from $30.0 million at December 31, 2009, supporting the Bank's liquidity position.
Total deposits increased to $689.5 million at December 31, 2010, from $688.5 million at December 31, 2009. Borrowings declined to $11.5 million at December 31, 2010, from $37.4 million at December 31, 2009. During 2010, the Bank repaid a $25.0 million 3.0% fixed-rate FHLB advance. The cost of funds improved to 1.2% for both the 2010 fourth quarter and the linked 2010 third quarter, from 1.6% for the comparative 2009 fourth quarter. The Bank has been able to improve its cost of funds by the combination of pricing new deposits, the renewal of maturing time deposits and the repositioning of borrowings within the current lower interest rate environment.
Stockholders' equity declined to $79.5 million at December 31, 2010, from $86.2 million at December 31, 2009, reflecting the net effect of the net operating loss, dividend payments and changes in accumulated other comprehensive income. The equity to assets ratio was 10.0% at December 31, 2010, compared to 10.4% at December 31, 2009.
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 28 full service branch offices and one loan production office 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) or
Tom Vann (CEO) 252-940-4916
Website: www.firstsouthnc.com
First South Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
December
December 31 31,
2010 2009*
---- -----
Assets (unaudited)
Cash and due from banks $14,684,377 $17,758,370
Interest-bearing deposits in
financial institutions 29,749,236 11,879,794
Investment securities -available
for sale 0 407,317
Mortgage-backed securities -
available for sale 98,637,742 96,725,468
Mortgage-backed securities - held
for investment 244,836 513,882
Loans and leases receivable, net:
Held for sale 4,464,040 6,548,980
Held for investment 601,610,242 652,106,538
Premises and equipment, net 9,162,538 8,539,759
Other real estate owned 11,616,390 10,561,071
Federal Home Loan Bank of Atlanta
stock, at cost
which approximates market 3,474,900 3,889,500
Accrued interest receivable 2,336,527 3,318,141
Goodwill 4,218,576 4,218,576
Mortgage servicing rights 1,357,659 1,278,688
Identifiable intangible assets 102,180 133,620
Income tax receivable 6,217,679 1,831,598
Prepaid expenses and other assets 9,368,924 10,179,333
--------- ----------
Total assets $797,245,846 $829,890,635
============
Liabilities and Stockholders' Equity
Deposits:
Demand $234,501,026 $224,507,362
Savings 24,498,789 23,137,391
Large denomination certificates of
deposit 222,578,449 224,198,974
Other time 207,886,450 216,667,331
----------- -----------
Total deposits 689,464,714 688,511,058
Borrowed money 11,503,110 37,380,388
Junior subordinated debentures 10,310,000 10,310,000
Other liabilities 6,454,818 7,475,085
--------- ---------
Total liabilities 717,732,642 743,676,531
----------- -----------
Common stock, $.01 par value,
25,000,000 shares authorized;
11,254,222 issued; 9,751,271 and
9,742,296
shares outstanding, respectively 97,513 97,423
Additional paid-in capital 35,795,586 35,841,364
Retained earnings, substantially
restricted 74,956,772 82,111,114
Treasury stock at cost (31,967,269) (32,158,074)
Accumulated other comprehensive
income, net 630,602 322,277
------- -------
Total stockholders' equity 79,513,204 86,214,104
---------- ----------
Total liabilities and stockholders'
equity $797,245,846 $829,890,635
============
*Derived from audited consolidated
financial statements
First South Bancorp, Inc. and Subsidiary
Consolidated Statements of Operations
(unaudited)
Three Months Ended
December 31
-----------
2010 2009
----
Interest income:
Interest and fees on
loans $8,971,629 $10,782,733
Interest and dividends
on investments and
deposits 956,429 1,068,842
------- ---------
Total interest income 9,928,058 11,851,575
--------- ----------
Interest expense:
Interest on deposits 2,002,600 2,644,057
Interest on borrowings 82,079 270,558
Interest on junior
subordinated notes 81,884 81,710
------ ------
Total interest expense 2,166,563 2,996,325
--------- ---------
Net interest income 7,761,495 8,855,250
Provision for credit
losses 13,700,000 2,700,000
---------- ---------
Net interest income
after provision for
credit losses (5,938,505) 6,155,250
---------- ---------
Non-interest income:
Fees and service charges 1,665,795 1,899,647
Loan servicing fees 192,315 182,878
Gain (loss) on sale of
other real estate, net (596,751) (39,409)
Gain on sale of mortgage
loans 311,169 261,737
Gain on sale of
mortgage-backed
securities 50,562 -
Gain on sale of
investment securities - -
Other income 296,282 221,584
------- -------
Total non-interest
income 1,919,372 2,526,437
--------- ---------
Non-interest expense:
Compensation and fringe
benefits 3,783,196 3,595,642
Federal deposit
insurance premiums 289,626 298,510
Premises and equipment 425,962 451,806
Advertising 36,798 23,341
Payroll and other taxes 326,526 309,928
Data processing 677,019 623,089
Amortization of
intangible assets 145,659 117,268
Other 1,053,471 880,283
--------- -------
Total non-interest
expense 6,738,257 6,299,867
--------- ---------
Income (loss) before
income tax expense
(benefit) (10,757,390) 2,381,820
Income tax expense
(benefit) (4,259,923) 872,050
---------- -------
Net income (loss) $(6,497,467) $1,509,770
=========== ==========
Per share data:
Basic earnings (loss)
per share $(0.67) $0.16
Diluted earnings (loss)
per share $(0.67) $0.16
Dividends per share $0.00 $0.20
Average basic shares
outstanding 9,748,948 9,738,475
Average diluted shares
outstanding 9,748,948 9,738,475
Year Ended
December 31
-----------
2010 2009
---- ----
Interest income:
Interest and fees on loans $38,843,771 $45,211,260
Interest and dividends on
investments and deposits 4,027,268 3,848,639
--------- ---------
Total interest income 42,871,039 49,059,899
---------- ----------
Interest expense:
Interest on deposits 8,301,551 14,459,345
Interest on borrowings 384,161 1,244,664
Interest on junior
subordinated notes 333,689 389,677
------- -------
Total interest expense 9,019,401 16,093,686
--------- ----------
Net interest income 33,851,638 32,966,213
Provision for credit losses 22,151,787 7,180,000
---------- ---------
Net interest income after
provision for credit
losses 11,699,851 25,786,213
---------- ----------
Non-interest income:
Fees and service charges 6,864,083 7,377,019
Loan servicing fees 747,387 679,673
Gain (loss) on sale of
other real estate, net (523,173) (200,732)
Gain on sale of mortgage
loans 1,155,690 1,197,029
Gain on sale of mortgage-
backed securities 1,682,453 -
Gain on sale of investment
securities 2,406 917,866
Other income 915,022 988,865
------- -------
Total non-interest income 10,843,868 10,959,720
---------- ----------
Non-interest expense:
Compensation and fringe
benefits 15,583,817 14,118,842
Federal deposit insurance
premiums 1,158,544 1,253,627
Premises and equipment 1,741,462 1,823,628
Advertising 148,380 123,513
Payroll and other taxes 1,392,624 1,327,449
Data processing 2,576,386 2,452,593
Amortization of intangible
assets 493,785 488,602
Other 3,629,836 3,756,547
--------- ---------
Total non-interest expense 26,724,834 25,344,801
---------- ----------
Income (loss) before income
tax expense (benefit) (4,181,115) 11,401,132
Income tax expense
(benefit) (1,801,319) 4,365,296
---------- ---------
Net income (loss) $(2,379,796) $7,035,836
=========== ==========
Per share data:
Basic earnings (loss) per
share $(0.24) $0.72
Diluted earnings (loss) per
share $(0.24) $0.72
Dividends per share $0.49 $0.80
Average basic shares
outstanding 9,744,870 9,738,225
Average diluted shares
outstanding 9,745,047 9,738,244
First South Bancorp, Inc. Supplemental Financial Data (Unaudited)
Quarterly
---------
12/31/2010 9/30/2010 6/30/2010
---------- --------- ---------
Consolidated
balance sheet
data: (dollars in thousands except per share data)
Total assets $797,246 $811,912 $812,771
Loans receivable
(net):
Mortgage $55,450 $53,995 $49,470
Commercial 463,155 496,489 502,425
Consumer 79,469 83,801 83,550
Leases 8,000 8,095 9,413
----- ----- -----
Total $606,074 $642,380 $644,858
Cash and
investments $44,434 $40,815 $34,737
Mortgage-backed
securities 98,883 87,245 92,559
Premises and
equipment 9,163 9,216 9,240
Goodwill 4,219 4,219 4,219
Mortgage
servicing
rights 1,358 1,299 1,268
Deposits:
Savings $24,499 $24,946 $25,155
Checking 234,501 237,677 224,950
Certificates 430,465 433,432 444,435
------- ------- -------
Total $689,465 $696,055 $694,540
Borrowings $11,503 $12,164 $12,665
Junior
subordinated
debentures 10,310 10,310 10,310
Stockholders'
equity 79,513 87,293 87,110
Consolidated
earnings
summary:
Interest income $9,928 $10,963 $10,829
Interest expense 2,166 2,222 2,258
----- ----- -----
Net interest
income 7,762 8,741 8,571
Provision for
credit losses 13,700 3,962 2,070
Noninterest
income 1,919 3,400 2,830
Noninterest
expense 6,738 6,745 6,741
Income tax
expense
(benefit) (4,260) 424 1,032
------ --- -----
Net income (loss) $(6,497) $1,010 $1,558
======= ====== ======
Per Share Data:
Basic earnings
(loss) per
share $(0.67) $0.10 $0.16
Diluted earnings
(loss) per
share $(0.67) $0.10 $0.16
Dividends per
share $0.00 $0.09 $0.20
Book value per
share $8.15 $8.96 $8.94
Average basic
shares 9,748,948 9,743,971 9,743,971
Average diluted
shares 9,748,948 9,743,971 9,744,679
Quarterly
---------
3/31/2010 12/31/2009
--------- ----------
Consolidated
balance sheet
data: (dollars in thousands except per share data)
Total assets $800,608 $829,891
Loans receivable
(net):
Mortgage $48,379 $51,820
Commercial 498,525 508,279
Consumer 85,502 88,893
Leases 9,877 9,664
----- -----
Total $642,283 $658,656
Cash and
investments $22,690 $30,045
Mortgage-backed
securities 94,735 97,239
Premises and
equipment 9,034 8,540
Goodwill 4,219 4,219
Mortgage
servicing
rights 1,281 1,279
Deposits:
Savings $24,709 $23,138
Checking 225,997 224,507
Certificates 433,734 440,866
------- -------
Total $684,440 $688,511
Borrowings $12,441 $37,380
Junior
subordinated
debentures 10,310 10,310
Stockholders'
equity 85,962 86,214
Consolidated
earnings
summary:
Interest income $11,151 $11,851
Interest expense 2,372 2,996
----- -----
Net interest
income 8,779 8,855
Provision for
credit losses 2,420 2,700
Noninterest
income 2,694 2,527
Noninterest
expense 6,500 6,300
Income tax
expense
(benefit) 1,003 872
----- ---
Net income (loss) $1,550 $1,510
====== ======
Per Share Data:
Basic earnings
(loss) per
share $0.16 $0.16
Diluted earnings
(loss) per
share $0.16 $0.16
Dividends per
share $0.20 $0.20
Book value per
share $8.82 $8.85
Average basic
shares 9,742,505 9,738,475
Average diluted
shares 9,742,505 9,738,550
Year to Date
------------
12/31/2010 12/31/2009
---------- ----------
Consolidated
balance sheet
data: (dollars in thousands except per share data)
Total assets $797,246 $829,891
Loans receivable
(net):
Mortgage $55,450 $51,820
Commercial 463,155 508,279
Consumer 79,469 88,893
Leases 8,000 9,664
----- -----
Total $606,074 $658,656
Cash and
investments $44,434 $30,045
Mortgage-backed
securities 98,883 97,239
Premises and
equipment 9,163 8,540
Goodwill 4,219 4,219
Mortgage
servicing
rights 1,358 1,279
Deposits:
Savings $24,499 $23,138
Checking 234,501 224,507
Certificates 430,465 440,866
------- -------
Total $689,465 $688,511
Borrowings $11,503 $37,380
Junior
subordinated
debentures 10,310 10,310
Stockholders'
equity 79,513 86,214
Consolidated
earnings
summary:
Interest income $42,871 $49,060
Interest expense 9,019 16,094
----- ------
Net interest
income 33,852 32,966
Provision for
credit losses 22,152 7,180
Noninterest
income 10,844 10,960
Noninterest
expense 26,725 25,345
Income tax
expense
(benefit) (1,801) 4,365
------ -----
Net income (loss) $(2,380) $7,036
======= ======
Per Share Data:
Basic earnings
(loss) per
share $(0.24) $0.72
Diluted earnings
(loss) per
share $(0.24) $0.72
Dividends per
share $0.49 $0.80
Book value per
share $8.15 $8.85
Average basic
shares 9,744,870 9,738,225
Average diluted
shares 9,745,047 9,738,244
First South Bancorp, Inc. Supplemental Financial Data (Unaudited)
Quarterly
---------
12/31/2010 9/30/2010 6/30/2010
---------- --------- ---------
(dollars in thousands except per share data)
Performance
ratios:
Yield on
earning
assets 5.51% 5.92% 5.86%
Cost of funds 1.24% 1.24% 1.26%
---- ---- ----
Net interest
spread 4.30% 4.68% 4.60%
Net interest
margin on
earning
assets 4.31% 4.72% 4.64%
Earning assets
to total
assets 87.42% 90.96% 91.13%
Return on
average
assets
(annualized) -3.21% 0.50% 0.77%
Return on
average
equity
(annualized) -30.31% 4.60% 7.17%
Efficiency ratio 69.52% 55.50% 59.05%
Average assets $810,459 $813,900 $808,266
Average
earning
assets $720,813 $741,214 $738,645
Average equity $85,746 $87,760 $86,957
Equity/Assets 9.97% 10.75% 10.72%
Tangible
Equity/
Assets 9.43% 10.22% 10.18%
Asset quality
data and
ratios:
Nonaccrual
loans $14,293 $14,073 $12,308
Nonaccrual
Restructured
loans $26,973 $5,156 $5,647
------- ------ ------
Total
nonaccrual
loans $41,266 $19,229 $17,955
Other real
estate owned $11,616 $8,599 $8,452
------- ------ ------
Total
nonperforming
assets $52,882 $27,828 $26,407
Performing
Restructured
Loans $31,334 $24,298 $14,087
Allowance for
loan and
lease losses $18,830 $8,611 $7,951
Allowance for
unfunded loan
commitments $237 $163 $171
--- --- ---
Allowance for
credit losses $19,067 $8,774 $8,122
Allowance for
loan and
lease losses
to loans 3.01% 1.32% 1.21%
Allowance for
unfunded loan
commitments
to unfunded
commitments 0.30% 0.20% 0.20%
Allowance for
credit losses
to loans 3.04% 1.35% 1.24%
Net charge-
offs
(recoveries) $3,407 $3,310 $7,347
Net charge-
offs
(recoveries)
to loans 0.56% 0.52% 1.14%
Nonaccrual
loans to
loans 6.81% 2.99% 2.78%
Nonperforming
assets to
assets 6.63% 3.43% 3.25%
Loans to
deposits 87.91% 92.29% 92.85%
Loans to assets 76.02% 79.12% 79.34%
Loans serviced
for others $318,218 $307,395 $299,361
Quarterly
---------
3/31/2010 12/31/2009
--------- ----------
(dollars in thousands except per share data)
Performance
ratios:
Yield on earning
assets 5.99% 6.09%
Cost of funds 1.32% 1.61%
---- ----
Net interest
spread 4.67% 4.48%
Net interest
margin on earning
assets 4.72% 4.55%
Earning assets to
total assets 91.66% 91.81%
Return on average
assets
(annualized) 0.76% 0.72%
Return on average
equity
(annualized) 7.13% 6.88%
Efficiency ratio 56.59% 55.28%
Average assets $811,859 $842,556
Average earning
assets $744,415 $777,896
Average equity $86,897 $87,762
Equity/Assets 10.74% 10.39%
Tangible Equity/
Assets 10.19% 9.86%
Asset quality data
and ratios:
Nonaccrual loans $8,578 $5,838
Nonaccrual
Restructured
loans $4,377 $4,343
------ ------
Total nonaccrual
loans $12,955 $10,181
Other real estate
owned $8,383 $10,561
------ -------
Total
nonperforming
assets $21,338 $20,742
Performing
Restructured
Loans $11,599 $11,612
Allowance for loan
and lease losses $13,221 $13,504
Allowance for
unfunded loan
commitments $178 $240
--- ---
Allowance for
credit losses $13,399 $13,744
Allowance for loan
and lease losses
to loans 2.01% 2.00%
Allowance for
unfunded loan
commitments
to unfunded
commitments 0.20% 0.27%
Allowance for
credit losses to
loans 2.04% 2.04%
Net charge-offs
(recoveries) $2,765 $1,543
Net charge-offs
(recoveries) to
loans 0.43% 0.23%
Nonaccrual loans
to loans 2.02% 1.55%
Nonperforming
assets to assets 2.67% 2.50%
Loans to deposits 93.84% 95.66%
Loans to assets 80.22% 79.37%
Loans serviced for
others $296,452 $289,324
Year to Date
------------
12/31/2010 12/31/2009
---------- ----------
(dollars in thousands except per share data)
Performance
ratios:
Yield on earning
assets 5.81% 6.13%
Cost of funds 1.26% 2.09%
---- ----
Net interest
spread 4.55% 4.04%
Net interest
margin on earning
assets 4.59% 4.12%
Earning assets to
total assets 87.42% 91.81%
Return on average
assets
(annualized) -0.29% 0.81%
Return on average
equity
(annualized) -2.74% 7.98%
Efficiency ratio 59.72% 57.63%
Average assets $811,742 $866,504
Average earning
assets $738,073 $800,899
Average equity $86,852 $88,129
Equity/Assets 9.97% 10.39%
Tangible Equity/
Assets 9.43% 9.86%
Asset quality data
and ratios:
Nonaccrual loans $14,293 $5,838
Nonaccrual
Restructured
loans $26,973 $4,343
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Total nonaccrual
loans $41,266 $10,181
Other real estate
owned $11,616 $10,561
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Total
nonperforming
assets $52,882 $20,742
Performing
Restructured
Loans $31,334 $11,612
Allowance for loan
and lease losses $18,830 $13,504
Allowance for
unfunded loan
commitments $237 $240
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Allowance for
credit losses $19,067 $13,744
Allowance for loan
and lease losses
to loans 3.01% 2.00%
Allowance for
unfunded loan
commitments
to unfunded
commitments 0.30% 0.27%
Allowance for
credit losses to
loans 3.04% 2.04%
Net charge-offs
(recoveries) $16,829 $5,393
Net charge-offs
(recoveries) to
loans 2.78% 0.82%
Nonaccrual loans
to loans 6.81% 1.55%
Nonperforming
assets to assets 6.63% 2.50%
Loans to deposits 87.91% 95.66%
Loans to assets 76.02% 79.37%
Loans serviced for
others $318,218 $289,324
SOURCE First South Bancorp, Inc.
