WASHINGTON, N.C., April 20, 2017 /PRNewswire/ -- First South
Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), the parent holding
company of First South Bank (the "Bank"), reports its unaudited
financial results for the quarter ended March 31, 2017.
The Company continues to achieve strong earnings and margin
expansion through robust loan and deposit growth. The Company
generated net income for the first quarter of 2017 of $1.9 million, which represented a $411,000 or 28.2% increase when compared to the
$1.5 million of net income generated
in the first quarter of 2016. As a result, the Company's
diluted earnings per common share (EPS) for the first quarter of
2017 increased 33.3% to $0.20 per
share, from $0.15 per share for the
first quarter of 2016. The net interest margin for the
quarter ended March 31, 2017 was
3.74%, an eight basis point increase above the 3.66% posted for the
first quarter of 2016. Over the past twelve months, loans and
leases held for investment (HFI) and total deposits have grown
$88.1 million and $101.2 million, respectively, bringing total
assets to in excess of $1.0
billion.
Chief Executive Officer Bruce
Elder said, "We are pleased to announce another quarter of
solid financial results. We have again demonstrated our
ability to grow the balance sheet in a profitable fashion while
driving efficiencies by continuing to analyze how we deliver You
First banking to our customer base. Our growth of loans and
deposits over the last twelve months has generated increases in net
interest income and core, non-interest income. Coupled with
controlled non-interest expenses, our growth has translated into
improved earnings, higher margins and dividend levels, greater
efficiency and improved returns on average assets and equity from
the prior year first quarter."
HIGHLIGHTS
- Strong quarterly earnings performance with net income of
$1.9 million, diluted EPS of
$0.20 per share, return on average
assets (ROA) of 0.75%, return on average equity (ROE) of 8.52% and
return on average tangible common equity* (ROTCE) of 9.32%.
- Pre-tax, pre-provision operating earnings* for the quarter of
$3.0 million are 48% higher than the
$2.0 million reported for the prior
year first quarter.
- Total assets grew to $1.04
billion at March 31, 2017, the
Company's first quarter-end reporting period to surpass the billion
dollar threshold.
- Loans and leases HFI grew $88.1
million or 13.8% during the past twelve months to
$727.1 million.
- Deposits grew $101.2 million or
12.4% during the past twelve months to $919.9 million.
- Total non-interest bearing deposits grew 24.6% to $204.6 million on a year-over-year basis.
- Net interest margin expanded to 3.74% for the quarter, compared
to 3.66% for the first quarter of 2016.
- Asset quality metrics continue to improve.
- Continued to maintain a strong capital position.
- The consolidation of two branches into nearby locations should
improve future efficiency.
- Increased quarterly dividend payment rate to $0.035 per share, a 16.7% increase.
The Company's loan and deposit growth continues to support
revenue increases, allowing for net interest margin expansion
despite the prevailing low interest rate environment. As a
result, our net interest income (NII) grew to $8.7 million for the first quarter of 2017 from
$7.8 million for the comparative
first quarter of 2016.
Total non-interest income was $3.3
million, or 27.6% of total revenue (net interest income plus
noninterest income) in the first quarter of 2017, compared to
$3.6 million, or 31.5% of total
revenue in the comparative 2016 first quarter. Non-interest
income for the first quarter of 2016 included a $284,000 gain on the sale of securities as well
as the receipt of a $230,000
non-recurring fee. The sale of other real estate owned (OREO)
during the first quarter of 2017 resulted in $82,000 of net gains, compared to a $12,000 net loss posted during the first quarter
of 2016.
The Company's efficiency ratio for the first quarter of 2017
improved to 74.92%, from 80.74% in the first quarter of 2016.
Non-interest expenses in the first quarter of 2017 declined
to $9.0 million, from $9.1 million in the first quarter of
2016.
Income tax expense was $778,000
for the 2017 first quarter, compared to $574,000 for the 2016 first quarter. The
effective income tax rates were 29.36% and 28.20% for these
reporting periods, respectively.
BALANCE SHEET GROWTH
Loans and leases HFI totaled
$727.1 million at March 31,
2017, increasing $26.5 million, over
the $700.6 million held at
December 31, 2016 and increasing $88.1
million from March 31, 2016.
Loans held for sale declined to $2.5
million at March 31, 2017, from the $5.1 million held at the end of fiscal year 2016.
Investment securities and interest-bearing deposits with
other banks increased by $27.7
million to $244.1 million at
March 31, 2017, from $216.4
million at year-end 2016, resulting primarily from strong
deposit growth during the quarter.
Deposits totaled $919.9 million at
March 31, 2017, increasing $49.3
million, or 5.7%, from $870.6
million at December 31, 2016, and increasing
$101.2 million, or 12.4% from
March 31, 2016. Non-maturity
deposits (personal and business checking, money market, and savings
accounts) grew by $37.2 million, or
6.1%, to $651.3 million at
March 31, 2017, from $614.1 million at December
31, 2016. Certificates of deposit (CDs) increased to
$268.6 million at March 31, 2017, from $256.6 million at December
31, 2016. CDs represented 29.2% and 29.5% of total
deposits at March 31, 2017, and
December 31, 2016, respectively.
Stockholders' equity increased by $2.1
million to $89.3 million at
March 31, 2017, from $87.2 million at December
31, 2016. This increase reflects the $1.9 million of net income earned for the 2017
first quarter and a $535,000 increase
in accumulated other comprehensive income resulting from the
mark-to-market adjustment of the available-for-sale securities
portfolio, and is net of $332,000
dividends declared.
The tangible equity to assets ratio* was 8.03% at March 31, 2017, compared to 8.21% at December 31, 2016. The tangible book value
per common share* increased to $8.79
at March 31, 2017, from $8.57 at December 31,
2016.
ASSET QUALITY
Solid asset quality metrics in the first
quarter of 2017 continue to reflect the Company's disciplined
credit culture. Non-performing assets (NPAs) declined to
$5.9 million at March 31, 2017,
or 0.57% of total assets, from $6.3
million, or 0.63% of total assets, at December 31,
2016. NPAs at March 31, 2017 included $3.1 million of OREO, which declined by
$115,000, from $3.2 million at December 31, 2016.
Nonaccrual loans and leases were $2.8
million at March 31, 2017, or 0.38% of loans and leases
HFI, compared to $3.1 million, or
0.44%, at December 31, 2016.
The provision for credit losses in the 2017 first quarter was
$265,000 versus $225,000 for the 2016 first quarter. The
allowance for loan losses represented 1.23% of loans and leases HFI
at March 31, 2017, compared to 1.24% at December 31,
2016.
REGULATORY CAPITAL STRENGTH
As of March 31,
2017, reported regulatory capital ratios at the Bank were 12.79%
for total risk-based capital, 11.59% for tier 1 risk-based capital
and common equity tier 1 risk-based capital and 8.89% for tier 1
leverage, compared to 13.01% for total risk-based capital, 11.80%
for tier 1 risk-based capital and common equity tier 1 risk-based
capital and 8.89% for tier 1 leverage at December 31, 2016.
CORPORATE AND INVESTOR INFORMATION
The Bank has been
serving the citizens of eastern and central North Carolina since 1902 and offers a variety
of financial products and services to business and individual
customers. The Bank operates through its main office headquartered
in Washington, North Carolina, and has 28 full-service branch
offices located throughout eastern and central North
Carolina. The Bank also provides a full menu of leasing
services through its wholly-owned subsidiary, First South Leasing,
LLC. In addition, under its First South Wealth Management division,
the Bank makes securities brokerage services available through an
affiliation with an independent broker/dealer.
Additional investor information for the Company and the Bank may
be accessed on our website at www.firstsouthnc.com.
The Company's common stock symbol as traded on the NASDAQ Global
Select Market is "FSBK".
FORWARD-LOOKING STATEMENTS
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 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. The Company assumes no
obligation and does not intend to update these forward-looking
statements, except as required by law.
*NON-GAAP FINANCIAL MEASURES
Important disclosures
about and reconciliations of non-GAAP measures to the corresponding
GAAP measures, are provided below and attached to this press
release.
This press release and the accompanying Supplemental Financial
Data contain financial information determined by methods other than
in accordance with generally accepted accounting principles (GAAP)
in the United States.
Management uses these "non-GAAP" measures in their analysis
of the Company's performance. Management believes that these
non-GAAP financial measures provide a greater understanding of
ongoing operations and enhance comparability of results with prior
periods as well as demonstrating the effects of significant gains
and charges. These disclosures should not be viewed as a substitute
for operating results determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that
may be presented by other companies. Reconciliations of
non-GAAP disclosures are provided within the accompanying tables to
this press release.
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Assets
|
|
(Unaudited)
|
|
|
|
|
|
(Unaudited)
|
|
Cash and due from
banks
|
$
|
21,650,045
|
|
$
|
22,854,712
|
|
$
|
17,729,075
|
|
Interest-bearing
deposits with banks
|
|
49,062,514
|
|
|
23,320,968
|
|
|
18,385,994
|
|
Investment securities
available for sale, at fair value
|
|
194,538,513
|
|
|
192,606,119
|
|
|
213,011,148
|
|
Investment securities
held to maturity
|
|
509,912
|
|
|
509,617
|
|
|
508,746
|
|
Mortgage loans held
for sale
|
|
2,506,883
|
|
|
5,098,518
|
|
|
2,489,873
|
|
|
|
|
|
|
|
|
|
|
Loans and leases held
for investment
|
|
727,142,668
|
|
|
700,642,291
|
|
|
639,044,574
|
|
Allowance for loan and lease losses
|
|
(8,940,879)
|
|
|
(8,673,172)
|
|
|
(8,135,054)
|
|
Net loans and leases held for investment
|
|
718,201,789
|
|
|
691,969,119
|
|
|
630,909,520
|
|
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
11,572,036
|
|
|
11,291,596
|
|
|
12,143,734
|
|
Assets held for
sale
|
|
192,720
|
|
|
192,720
|
|
|
1,083,320
|
|
Other real estate
owned
|
|
3,114,760
|
|
|
3,229,423
|
|
|
5,956,092
|
|
Federal Home Loan
Bank stock, at cost
|
|
1,528,900
|
|
|
1,573,700
|
|
|
1,828,700
|
|
Accrued interest
receivable
|
|
2,973,712
|
|
|
3,525,684
|
|
|
2,845,975
|
|
Goodwill
|
|
4,218,576
|
|
|
4,218,576
|
|
|
4,218,576
|
|
Mortgage servicing
rights
|
|
2,140,105
|
|
|
2,148,905
|
|
|
1,247,005
|
|
Identifiable
intangible assets
|
|
1,550,768
|
|
|
1,611,187
|
|
|
1,824,432
|
|
Bank-owned life
insurance
|
|
18,219,320
|
|
|
18,080,183
|
|
|
17,653,186
|
|
Prepaid expenses and
other assets
|
|
7,443,786
|
|
|
8,470,887
|
|
|
8,272,379
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
1,039,424,339
|
|
$
|
990,701,914
|
|
$
|
940,107,755
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing demand
|
$
|
204,575,610
|
|
$
|
196,917,165
|
|
$
|
164,244,311
|
|
Interest
bearing demand
|
|
298,983,678
|
|
|
272,098,903
|
|
|
244,323,710
|
|
Savings
|
|
147,718,357
|
|
|
145,031,981
|
|
|
146,254,503
|
|
Large
denomination certificates of deposit
|
|
135,765,040
|
|
|
122,819,510
|
|
|
119,229,985
|
|
Other
time
|
|
132,823,471
|
|
|
133,732,804
|
|
|
144,614,799
|
|
Total deposits
|
|
919,866,156
|
|
|
870,600,363
|
|
|
818,667,308
|
|
|
|
|
|
|
|
|
|
|
Borrowed
money
|
|
15,000,000
|
|
|
17,000,000
|
|
|
21,500,000
|
|
Junior subordinated
debentures
|
|
10,310,000
|
|
|
10,310,000
|
|
|
10,310,000
|
|
Other
liabilities
|
|
4,966,400
|
|
|
5,607,832
|
|
|
5,451,329
|
|
Total liabilities
|
|
950,142,556
|
|
|
903,518,195
|
|
|
855,928,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01
par value, 25,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
9,500,266; 9,494,935; and 9,493,776 shares outstanding,
respectively
|
|
95,003
|
|
|
94,949
|
|
|
94,938
|
|
Additional paid-in
capital
|
|
36,042,028
|
|
|
36,018,743
|
|
|
35,957,524
|
|
Retained
earnings
|
|
51,100,449
|
|
|
49,560,595
|
|
|
44,914,635
|
|
Accumulated other
comprehensive income
|
|
2,044,303
|
|
|
1,509,432
|
|
|
3,212,021
|
|
Total stockholders' equity
|
|
89,281,783
|
|
|
87,183,719
|
|
|
84,179,118
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
|
1,039,424,339
|
|
$
|
990,701,914
|
|
$
|
940,107,755
|
|
|
|
|
|
|
|
|
|
|
First South
Bancorp, Inc. and Subsidiary
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017 and 2016
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and
fees on loans
|
|
|
$
|
8,213,288
|
|
$
|
7,191,595
|
|
Interest on
investments and deposits
|
|
|
1,390,679
|
|
|
1,480,252
|
|
Total interest income
|
|
|
9,603,967
|
|
|
8,671,847
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
|
753,989
|
|
|
669,276
|
|
Interest on
borrowings
|
|
|
|
61,959
|
|
|
73,086
|
|
Interest on
junior subordinated notes
|
|
|
124,250
|
|
|
140,039
|
|
Total interest expense
|
|
|
940,198
|
|
|
882,401
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
8,663,769
|
|
|
7,789,446
|
|
Provision for credit
losses
|
|
|
|
265,000
|
|
|
225,000
|
|
Net interest income after provision for credit losses
|
|
8,398,769
|
|
|
7,564,446
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
Deposit fees
and service charges
|
|
|
1,856,220
|
|
|
1,907,407
|
|
Loan fees
and charges
|
|
|
|
86,044
|
|
|
56,985
|
|
Mortgage loan
servicing fees
|
|
|
321,838
|
|
|
234,001
|
|
Gain on sale
and other fees on mortgage loans
|
|
|
473,562
|
|
|
413,861
|
|
Gain (loss) on
sale of other real estate, net
|
|
|
81,651
|
|
|
(12,168)
|
|
Gain on sale
of investment securities
|
|
|
0
|
|
|
283,514
|
|
Other
income
|
|
|
|
478,787
|
|
|
692,285
|
|
Total non-interest income
|
|
|
3,298,102
|
|
|
3,575,885
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
Compensation
and fringe benefits
|
|
|
5,113,553
|
|
|
5,039,954
|
|
Federal
deposit insurance premiums
|
|
|
147,374
|
|
|
161,609
|
|
Premises and
equipment
|
|
|
|
1,398,550
|
|
|
1,373,809
|
|
Marketing
|
|
|
|
63,739
|
|
|
187,818
|
|
Data
processing
|
|
|
|
793,368
|
|
|
796,487
|
|
Amortization
of intangible assets
|
|
|
149,197
|
|
|
131,527
|
|
Other real
estate owned expense
|
|
|
164,767
|
|
|
93,674
|
|
Other
|
|
|
|
1,216,002
|
|
|
1,321,048
|
|
Total non-interest expense
|
|
|
9,046,550
|
|
|
9,105,926
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
2,650,321
|
|
|
2,034,405
|
|
Income tax
expense
|
|
|
|
778,124
|
|
|
573,611
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
$
|
1,872,197
|
|
$
|
1,460,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
$
|
0.20
|
|
$
|
0.15
|
|
Diluted earnings per
share
|
|
|
$
|
0.20
|
|
$
|
0.15
|
|
Dividends per
share
|
|
|
$
|
0.035
|
|
$
|
0.025
|
|
Average basic shares
outstanding
|
|
|
9,497,601
|
|
|
9,491,201
|
|
Average diluted
shares outstanding
|
|
|
9,541,548
|
|
|
9,514,797
|
|
|
|
|
|
|
|
|
|
First South
Bancorp, Inc.
|
Supplemental
Financial Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
Date
|
|
|
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
|
|
(dollars in thousands
except per share data)
|
|
Consolidated balance
sheet data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,039,424
|
$
|
990,702
|
$
|
985,795
|
$
|
961,479
|
$
|
940,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale:
|
$
|
2,507
|
$
|
5,099
|
$
|
7,313
|
$
|
5,252
|
$
|
2,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases held
for investment (HFI):
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
$
|
73,107
|
$
|
74,905
|
$
|
74,710
|
$
|
73,100
|
$
|
73,412
|
|
Commercial
|
|
558,578
|
|
535,047
|
|
518,265
|
|
510,678
|
|
482,779
|
|
Consumer
|
|
73,188
|
|
69,454
|
|
69,039
|
|
66,138
|
|
64,521
|
|
Leases
|
|
22,270
|
|
21,236
|
|
20,452
|
|
18,927
|
|
18,333
|
|
|
Total loans and
leases HFI
|
|
727,143
|
|
700,642
|
|
682,466
|
|
668,843
|
|
639,045
|
|
Allowance for loan
and lease losses
|
|
(8,941)
|
|
(8,673)
|
|
(8,498)
|
|
(8,338)
|
|
(8,135)
|
|
Net loans and leases
HFI
|
$
|
718,202
|
$
|
691,969
|
$
|
673,968
|
$
|
660,505
|
$
|
630,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & interest
bearing deposits
|
$
|
70,713
|
$
|
46,176
|
$
|
57,209
|
$
|
40,734
|
$
|
36,115
|
|
Investment
securities
|
|
195,048
|
|
193,116
|
|
193,765
|
|
200,364
|
|
213,520
|
|
Bank-owned life
insurance
|
|
18,219
|
|
18,080
|
|
17,937
|
|
17,795
|
|
17,653
|
|
Premises and
equipment
|
|
11,572
|
|
11,292
|
|
11,609
|
|
11,671
|
|
12,144
|
|
Goodwill
|
|
|
4,219
|
|
4,219
|
|
4,219
|
|
4,219
|
|
4,219
|
|
Mortgage servicing
rights
|
|
2,140
|
|
2,149
|
|
2,091
|
|
1,273
|
|
1,247
|
|
Identifiable
intangible assets
|
|
1,551
|
|
1,611
|
|
1,682
|
|
1,753
|
|
1,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
$
|
204,576
|
$
|
196,917
|
$
|
189,873
|
$
|
177,281
|
$
|
164,244
|
|
Interest
checking
|
|
212,386
|
|
189,401
|
|
176,034
|
|
170,153
|
|
171,323
|
|
Money
market
|
|
86,598
|
|
82,698
|
|
88,081
|
|
72,054
|
|
73,000
|
|
Savings
|
|
|
147,718
|
|
145,032
|
|
141,701
|
|
142,151
|
|
146,255
|
|
Certificates
|
|
268,588
|
|
256,552
|
|
264,142
|
|
263,823
|
|
263,845
|
|
Total
deposits
|
$
|
919,866
|
$
|
870,600
|
$
|
859,831
|
$
|
825,462
|
$
|
818,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
$
|
15,000
|
$
|
17,000
|
$
|
20,000
|
$
|
32,500
|
$
|
21,500
|
|
Junior subordinated
debentures
|
|
10,310
|
|
10,310
|
|
10,310
|
|
10,310
|
|
10,310
|
|
Stockholders'
equity
|
|
89,282
|
|
87,184
|
|
88,294
|
|
87,327
|
|
84,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
9,604
|
$
|
9,336
|
$
|
9,210
|
$
|
8,998
|
$
|
8,672
|
|
Interest
expense
|
|
940
|
|
920
|
|
911
|
|
898
|
|
882
|
|
Net interest
income
|
|
8,664
|
|
8,416
|
|
8,299
|
|
8,100
|
|
7,790
|
|
Provision for credit
losses
|
|
265
|
|
200
|
|
220
|
|
325
|
|
225
|
|
Noninterest
income
|
|
3,298
|
|
3,372
|
|
3,691
|
|
3,548
|
|
3,576
|
|
Noninterest
expense
|
|
9,047
|
|
8,819
|
|
8,929
|
|
9,046
|
|
9,106
|
|
Income before
taxes
|
|
2,650
|
|
2,769
|
|
2,841
|
|
2,277
|
|
2,035
|
|
Income tax
expense
|
|
778
|
|
775
|
|
947
|
|
665
|
|
574
|
|
Net income
|
$
|
1,872
|
$
|
1,994
|
$
|
1,894
|
$
|
1,612
|
$
|
1,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.20
|
$
|
0.21
|
$
|
0.20
|
$
|
0.17
|
$
|
0.15
|
|
Diluted earnings per
share
|
$
|
0.20
|
$
|
0.21
|
$
|
0.20
|
$
|
0.17
|
$
|
0.15
|
|
Dividends per
share
|
$
|
0.035
|
$
|
0.03
|
$
|
0.03
|
$
|
0.03
|
$
|
0.025
|
|
Book value per
share
|
$
|
9.40
|
$
|
9.18
|
$
|
9.30
|
$
|
9.20
|
$
|
8.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
|
9,500,266
|
|
9,494,935
|
|
9,494,935
|
|
9,493,776
|
|
9,493,776
|
|
Average basic
shares
|
|
9,497,601
|
|
9,494,935
|
|
9,494,861
|
|
9,493,776
|
|
9,491,201
|
|
Average diluted
shares
|
|
9,541,548
|
|
9,529,753
|
|
9,525,302
|
|
9,519,565
|
|
9,514,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
(tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
|
Yield on average
earning assets
|
|
4.15%
|
|
4.07%
|
|
4.13%
|
|
4.17%
|
|
4.07%
|
|
Cost of interest
bearing liabilities
|
|
0.52%
|
|
0.52%
|
|
0.52%
|
|
0.52%
|
|
0.52%
|
|
Net interest
spread
|
|
3.62%
|
|
3.55%
|
|
3.61%
|
|
3.64%
|
|
3.55%
|
|
Net interest
margin
|
|
3.74%
|
|
3.68%
|
|
3.73%
|
|
3.76%
|
|
3.66%
|
|
Average earning
assets to total average assets
|
|
93.32%
|
|
92.92%
|
|
92.42%
|
|
92.38%
|
|
92.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
0.75%
|
|
0.80%
|
|
0.78%
|
|
0.68%
|
|
0.63%
|
|
Return on average
equity (annualized)
|
|
8.52%
|
|
8.94%
|
|
8.52%
|
|
7.55%
|
|
6.97%
|
|
Efficiency ratio
|
|
74.92%
|
|
74.16%
|
|
73.84%
|
|
77.59%
|
|
80.74%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
$
|
1,014,310
|
$
|
992,192
|
$
|
968,729
|
$
|
947,761
|
$
|
938,702
|
|
Average earning
assets
|
$
|
946,578
|
$
|
921,984
|
$
|
895,290
|
$
|
875,529
|
$
|
865,463
|
|
Average
equity
|
$
|
89,143
|
$
|
88,694
|
$
|
88,481
|
$
|
85,927
|
$
|
84,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/Assets
|
|
8.59%
|
|
8.80%
|
|
8.96%
|
|
9.08%
|
|
8.95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First South
Bancorp, Inc.
|
|
Supplemental Financial Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter to
Date
|
|
|
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
|
|
(dollars in thousands
except per share data)
|
|
Asset quality data
and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
Non-TDR nonaccrual
loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
Earning
|
$
|
576
|
$
|
410
|
$
|
569
|
$
|
555
|
$
|
945
|
|
Non-Earning
|
|
1,479
|
|
1,257
|
|
1,289
|
|
1,075
|
|
895
|
|
|
Total Non-TDR
nonaccrual loans and leases
|
$
|
2,055
|
$
|
1,667
|
$
|
1,858
|
$
|
1,630
|
$
|
1,840
|
|
TDR nonaccrual loans
and leases
|
|
|
|
|
|
|
|
|
|
|
|
Current
TDRs
|
$
|
720
|
$
|
422
|
$
|
792
|
$
|
706
|
$
|
847
|
|
Past Due
TDRs
|
|
0
|
|
962
|
|
248
|
|
250
|
|
154
|
|
|
Total TDR nonaccrual
loans and leases
|
$
|
720
|
$
|
1,384
|
$
|
1,040
|
$
|
956
|
$
|
1,001
|
|
Total nonaccrual
loans and leases
|
$
|
2,775
|
$
|
3,051
|
$
|
2,898
|
$
|
2,586
|
$
|
2,841
|
|
Loans and leases
>90 days past due, still accruing
|
|
0
|
|
0
|
|
0
|
|
218
|
|
153
|
|
Other real estate
owned
|
|
3,115
|
|
3,229
|
|
4,810
|
|
5,541
|
|
5,956
|
|
Total nonperforming
assets
|
$
|
5,890
|
$
|
6,280
|
$
|
7,708
|
$
|
8,345
|
$
|
8,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses to
|
|
|
|
|
|
|
|
|
|
|
|
loans and leases
HFI
|
|
1.23%
|
|
1.24%
|
|
1.25%
|
|
1.25%
|
|
1.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries)
|
$
|
(3)
|
$
|
25
|
$
|
60
|
$
|
122
|
$
|
(44)
|
|
Net charge-offs
(recoveries) to total loans and leases
|
|
0.00%
|
|
0.00%
|
|
0.01%
|
|
0.02%
|
|
-0.01%
|
|
Total nonaccrual
loans and leases to total loans
|
|
|
|
|
|
|
|
|
|
|
|
and leases
HFI
|
|
0.38%
|
|
0.44%
|
|
0.42%
|
|
0.39%
|
|
0.44%
|
|
Total nonperforming
assets to total assets
|
|
0.57%
|
|
0.63%
|
|
0.78%
|
|
0.87%
|
|
0.95%
|
|
Total loans and
leases to total deposits
|
|
79.32%
|
|
81.06%
|
|
80.22%
|
|
81.66%
|
|
78.36%
|
|
Total loans and
leases to total assets
|
|
70.20%
|
|
71.24%
|
|
69.97%
|
|
70.11%
|
|
68.24%
|
|
Loans serviced for
others
|
$
|
368,617
|
$
|
371,956
|
$
|
370,606
|
$
|
292,222
|
$
|
293,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision
operating earnings (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
(GAAP)
|
$
|
2,650
|
$
|
2,769
|
$
|
2,841
|
$
|
2,277
|
$
|
2,035
|
|
Provision for credit
losses
|
|
265
|
|
200
|
|
220
|
|
325
|
|
225
|
|
Pre-tax pre-provision
net income
|
|
2,915
|
|
2,969
|
|
3,061
|
|
2,602
|
|
2,260
|
|
Securities (gains)
losses, net
|
|
0
|
|
0
|
|
0
|
|
(184)
|
|
(284)
|
|
OREO
valuations
|
|
119
|
|
140
|
|
0
|
|
103
|
|
7
|
|
OREO (gains) losses,
(net)
|
|
(82)
|
|
(80)
|
|
(77)
|
|
14
|
|
12
|
|
Pre-tax pre-provision
operating
|
|
|
|
|
|
|
|
|
|
|
|
earnings
(non-GAAP)
|
$
|
2,952
|
$
|
3,029
|
$
|
2,984
|
$
|
2,535
|
$
|
1,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core
non-interest income (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
$
|
3,298
|
$
|
3,372
|
$
|
3,691
|
$
|
3,548
|
$
|
3,576
|
|
Securities (gains)
losses, net
|
|
0
|
|
0
|
|
0
|
|
(184)
|
|
(284)
|
|
OREO (gains) losses,
(net)
|
|
(82)
|
|
(80)
|
|
(77)
|
|
14
|
|
12
|
|
Total core
non-interest income (non-GAAP)
|
$
|
3,216
|
$
|
3,292
|
$
|
3,614
|
$
|
3,378
|
$
|
3,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
(non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
(GAAP)
|
$
|
89,282
|
$
|
87,184
|
$
|
88,294
|
$
|
87,327
|
$
|
84,179
|
|
Intangible assets
(a)
|
|
5,770
|
|
5,830
|
|
5,901
|
|
5,972
|
|
6,043
|
|
Tangible equity
(non-GAAP)
|
$
|
83,512
|
$
|
81,354
|
$
|
82,393
|
$
|
81,355
|
$
|
78,136
|
|
Tangible
Equity/Assets (non-GAAP)
|
|
8.03%
|
|
8.21%
|
|
8.36%
|
|
8.46%
|
|
8.31%
|
|
Tangible book value
per share (non-GAAP)
|
$
|
8.79
|
$
|
8.57
|
$
|
8.68
|
$
|
8.57
|
$
|
8.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
|
1,872
|
$
|
1,994
|
$
|
1,894
|
$
|
1,612
|
$
|
1,461
|
|
Amortization of
intangibles, net of tax
|
|
43
|
|
51
|
|
47
|
|
50
|
|
51
|
|
Tangible net income
available to shareholders (non-GAAP)
|
$
|
1,915
|
$
|
2,045
|
$
|
1,941
|
$
|
1,662
|
$
|
1,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity
|
|
89,143
|
|
88,694
|
|
88,481
|
|
85,927
|
|
84,265
|
|
Average intangible
assets (a)
|
|
5,809
|
|
5,876
|
|
5,946
|
|
6,018
|
|
6,088
|
|
Average tangible
common equity (non-GAAP)
|
$
|
83,334
|
$
|
82,818
|
$
|
82,535
|
$
|
79,909
|
$
|
78,177
|
|
Return on average
tangible common equity (non-GAAP)
|
|
9.32%
|
|
9.82%
|
|
9.36%
|
|
8.37%
|
|
7.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes mortgage
servicing rights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances –
Yield/Cost Analysis
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
|
|
Interest earning
assets:
|
(Dollars in
thousands)
|
|
Loans
receivable
|
$
708,822
|
|
$
8,213
|
|
4.64
|
%
|
$
621,345
|
|
$
7,192
|
|
4.59
|
%
|
|
Investments and
deposits
|
237,756
|
|
1,391
|
|
2.67
|
(1)
|
244,118
|
|
1,480
|
|
2.73
|
(1)
|
|
Total earning
assets
|
946,578
|
|
9,604
|
|
4.15
|
(1)
|
865,463
|
|
8,672
|
|
4.07
|
(1)
|
|
Nonearning
assets
|
67,732
|
|
|
|
|
|
73,239
|
|
|
|
|
|
|
Total
assets
|
$
1,014,310
|
|
|
|
|
|
$
938,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
691,992
|
|
754
|
|
0.44
|
|
$
641,460
|
|
669
|
|
0.42
|
|
|
Borrowings
|
22,161
|
|
62
|
|
1.12
|
|
33,313
|
|
73
|
|
0.87
|
|
|
Junior subordinated
debentures
|
10,310
|
|
124
|
|
4.82
|
|
10,310
|
|
140
|
|
5.37
|
|
|
Total interest
bearing liabilities
|
724,463
|
|
940
|
|
0.52
|
|
685,083
|
|
882
|
|
0.52
|
|
|
Noninterest bearing
demand deposits
|
195,183
|
|
-
|
|
-
|
|
163,269
|
|
-
|
|
-
|
|
|
Total sources
of funds
|
919,646
|
|
940
|
|
0.41
|
|
848,352
|
|
882
|
|
0.42
|
|
|
Other
liabilities
|
5,521
|
|
|
|
|
|
6,085
|
|
|
|
|
|
|
Stockholders'
equity
|
89,143
|
|
|
|
|
|
84,265
|
|
|
|
|
|
|
Total
liabilities and equity
|
$
1,014,310
|
|
|
|
|
|
$
938,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$
8,664
|
|
|
|
|
|
$
7,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(1)(2)
|
|
|
|
|
3.62
|
%
|
|
|
|
|
3.55
|
%
|
|
Net interest margin
(1)(3)
|
|
|
|
|
3.74
|
%
|
|
|
|
|
3.66
|
%
|
|
Ratio of earning
assets to interest bearing liabilities
|
|
|
|
130.66
|
%
|
|
|
|
|
126.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Shown as a tax-adjusted
yield.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the difference
between the average yield on earning assets and the average cost of
funds.
|
|
|
|
|
(3) Represents net interest
income divided by average earning assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/first-south-bancorp-inc-reports-increased-march-31-2017-quarterly-operating-results-total-assets-in-excess-of-10-billion-300442651.html
SOURCE First South Bancorp, Inc.