WASHINGTON, N.C., April 14, 2016 /PRNewswire/ -- First South
Bancorp, Inc. (NASDAQ: FSBK) (the "Company"), parent holding
company of First South Bank (the "Bank"), reports its unaudited
operating results for the quarter ended March 31, 2016.
The Company's net income for the first quarter of 2016 was
$1.5 million or $0.15 per diluted common share, compared to
$725,000, or $0.08 per diluted common share earned for the
2015 first quarter. Net income for the 2015 first quarter
reflects the impact of $425,000 of
one-time pre-tax transaction expenses associated with the
acquisition of nine branch offices from Bank of America (BOA) in
mid-December of 2014. Net income for the linked 2015 fourth
quarter was $1.6 million, or
$0.16 per diluted common share.
Loan portfolio growth during the 2016 first quarter remained
strong for the Company, as loans and leases held for investment
(LHFI) increased to $639.0 million at
March 31, 2016, from $607.0 million at December
31, 2015 and $488.7 million at
March 31, 2015. The ongoing
expansion of our loan portfolio should continue to have a favorable
impact on the Company's margin and revenue generation in future
periods.
2016 First Quarter Highlights
- Strong first quarter loan growth as we increased LHFI
$32.0 million or 21.1% on an
annualized basis.
- Expanded Small Business Administration (SBA) loan sales and
servicing.
- Improved asset quality metrics with lower levels of past due
and non-performing loans, as well as other real estate owned
(OREO). Total non-performing assets were 0.95% of total
assets at March 31, 2016.
- Experienced positive deposit growth over the linked quarter and
first quarter one-year ago.
- Increased our net interest margin when compared to the first
quarter one-year ago.
- Consolidated three branches into nearby locations which is
expected to positively impact efficiency in future periods.
- Our new branch opened in Williamston,
NC on November 30, 2015 was
profitable in its first full quarter of operation.
Bruce Elder, President and CEO,
commented, "We are pleased to report the financial results for the
first quarter of 2016 which illustrate the continued execution of
our strategy to build long-term stockholder value. Coupled with the
growth in 2015, we have increased our loan and lease portfolio by
$158 million since December 31, 2014. Over the past 15 months, we
have changed the mix of our earning assets by transitioning over
$99 million from lower yielding
investments and cash into higher yielding loans. Over
the same period, our deposits have increased by over $30 million, almost $17
million of which is in non-interest bearing deposits.
The transformation is having a positive impact on earnings as net
income has doubled for the first quarter of 2016 compared to the
same prior year quarter.
During the first quarter, we consolidated three branch locations
with other nearby facilities. The financial results for the
quarter reflect approximately $160,000 of pre-tax restructuring costs
associated with the consolidations. While branch consolidations
typically result in some customer loss, particularly with cash
intensive customers, our retention rate is very high due to the
relationships we have built and our electronic banking
capabilities. We continue to strive to enhance our operating
leverage and further improve efficiency.
Finally, we remain focused on asset quality, both the new
business we are generating as well as the existing loan and lease
portfolio. Despite a slight decrease in total assets during
the quarter, our ratio of non-performing assets to total assets
declined to 0.95% from 1.0% at December
31, 2015. Our loan growth over the past 15 months has
not come as a result of relaxed credit underwriting standards."
Net Interest Income. Net interest income for the 2016
first quarter increased to $7.8
million, from $7.7 million for
the linked 2015 fourth quarter and $7.1
million for the 2015 first quarter. The increase in
the net interest income resulted primarily from our strong loan and
lease growth. The tax equivalent net interest margin remained
consistent at 3.64% for both the 2016 first quarter and the linked
2015 fourth quarter, and compared favorably to the 3.62% tax
equivalent net interest margin for the 2015 first quarter.
Yields on earning assets have been impacted by renewal of existing
loans and origination of new loans in a highly competitive, low
interest rate environment. This impact has been mitigated by
a significant change in the mix of our earning assets over
comparative periods. On the liability side of the balance
sheet, while we continue to seek expansion of our non-maturity
deposit base, we have also taken steps to protect the Company from
a rising rate environment by adding some longer-term funding.
Asset Quality and Provision for Loan Losses. The Bank
continues to focus on improving its asset quality metrics.
Total nonperforming assets declined to $8.9
million at March 31, 2016,
from $9.4 million at December 31, 2015, and $11.5 million at March
31, 2015. Total non-accrual loans declined to
$2.8 million at March 31, 2016, from $3.2
million at December 31, 2015
and $4.4 million at March 31, 2015. The volume of OREO declined
to $6.0 million at March 31, 2016, from $6.1
million at December 31, 2015
and $7.1 million at March 31, 2015.
The allowance for loan and lease losses (ALLL) was $8.1 million at March 31,
2016, representing 1.27% of loans and leases held for
investment, compared to $7.9 million
at December 31, 2015, or 1.30% of
loans and leases held for investment, and $7.2 million at March 31,
2015, or 1.47% of loans held for investment. During
the 2016 first quarter, the Bank recorded $225,000 of provision for credit losses, compared
to $325,000 recorded in the linked
2015 fourth quarter and none in the 2015 first quarter.
During the 2016 first quarter, the Bank recorded $44,000 of net recoveries, compared to net
charge-offs of $28,000 and
$317,000 recorded in the linked 2015
fourth quarter and 2015 first quarter, respectively.
Management believes the ALLL remains adequate.
Non-Interest Income. Total non-interest income was
$3.6 million for the 2016 first
quarter, compared to $3.7 million for
the linked 2015 fourth quarter and $3.2
million for the comparative 2015 first quarter.
Service charges and fees remained relatively consistent at
$2.0 million for the 2016 first
quarter, $2.1 million for the linked
2015 fourth quarter and $1.9 million
for the 2015 first quarter. The current volume of service
charges and fees has been enhanced by the BOA branch acquisition
transaction. We anticipate additional service charge revenue
from deposits going forward, as we focus on growing our core
deposit base through new customer acquisition, cross-selling to
existing customers and offering new revenue generating
products.
Total revenue from the sale and servicing of mortgage loans and
loan fees was $648,000 for the 2016
first quarter, compared with $820,000
in the linked 2015 fourth quarter and $624,000 for the 2015 first quarter.
Revenue from mortgage banking in the 2016 first quarter was
primarily driven by mortgage applications taken in the last two
months of 2015 and the first month of 2016. Application
volume decreased during that period due to a temporary spike in
long term rates. We continue to explore various strategies to
enhance our non-interest income, including the purchasing of
mortgage servicing rights.
Net gains from investment securities sales were $284,000 for the 2016 first quarter, compared to
$463,000 for the linked 2015 fourth
quarter and $251,000 for the 2015
first quarter. During the 2016 first quarter, we sold
$30.4 million of investment
securities to fund growth in our loan portfolio.
Other non-interest income for the first quarter of 2016 totaled
$692,000, which includes a
$230,000 non-recurring item as well
as $144,000 of SBA related revenue.
While the Bank has made SBA loans in the past, we only
recently began the process of actively selling and servicing these
credits. Other non-interest income for the linked fourth
quarter of 2015 was $328,000,
including $4,000 of SBA servicing
revenue, and $334,000 for the
comparative first quarter of 2015.
Non-Interest Expense. Total non-interest expenses were
$9.1 million for both the 2016 first
quarter and the linked 2015 fourth quarter, compared to
$9.3 million for the 2015 first
quarter.
Compensation and benefit expenses, the largest component of
non-interest expenses, increased marginally to $5.0 million for the 2016 first quarter, from
$4.9 million for the linked 2015
fourth quarter and $4.7 million 2015
first quarter. First quarter 2016 expenses included severance
costs associated with branch consolidations during the
period. The Bank will continue to manage staffing levels to
ensure we meet the ongoing needs of our customers and to support
our future growth.
Premises and equipment expenses remained stable at $1.4 million for the 2016 first quarter, as well
as the first and fourth quarters of 2015. We will continue to
explore opportunities to gain efficiency and performance
improvement from our branch network. Occupancy expenses for
the 2016 first quarter included the retirement of certain leasehold
improvements at an office that was consolidated and
closed.
Data processing costs declined to $796,000 and $778,000, respectively, for the 2016 first
quarter and the linked 2015 fourth quarter, from $1.1 million for the 2015 first quarter.
Data processing expense for the 2015 first quarter included
$173,000 of one-time expenses
associated with the BOA branch acquisition. Data processing
costs fluctuate with changes in the number of customer accounts and
transaction activity volumes.
In conjunction with the decline in the Bank's OREO, total
expenses attributable to ongoing maintenance, property taxes and
insurance, as well as valuation adjustments for OREO properties
have also declined. These OREO expenses declined to
$94,000 for the 2016 first quarter,
from $169,000 for the linked 2015
fourth quarter and $207,000 for the
comparative 2015 first quarter.
During the first quarter of 2016 the Bank consolidated three
existing branches into nearby locations. Of the locations
that were consolidated, two of the facilities are leased and the
third is owned. The Bank has entered into a contract to sell
the owned location and realized an $85,000 pre-tax loss during the period as a
result.
Income tax expense was $574,000
for the 2016 first quarter, compared to $484,000 for the linked 2015 fourth quarter and
$257,000 for the 2015 first
quarter. The effective income tax rates were 28.20% for the
2016 first quarter, 23.60% for the linked 2015 fourth quarter and
26.15% for the 2015 first quarter.
Balance Sheet. Total assets were $940.1 million at March
31, 2016, compared to $946.3
million at December 31, 2015
and $879.2 million at March 31, 2015. The year-over-year increase
is primarily attributable to the strong growth in loans and leases
held for investment. Loans and leases held for investment
totaled $639.0 million at
March 31, 2016, compared to
$607.0 million at December 31, 2015 and $488.7 million at March
31, 2015.
The investment securities portfolio declined to $213.5 million at March
31, 2016, from $248.8 million
at December 31, 2015. This
reduction was the result of cash flows from scheduled amortization
and maturities, as well as sales of securities, with the proceeds
used to support growth in loans outstanding.
The Bank's investment in bank owned life insurance (BOLI)
increased to $17.7 million at
March 31, 2016, from $15.6 million at December
31, 2015. The investment returns from the BOLI are
utilized to recover a portion of the cost of providing benefit
plans to our employees.
Total deposits increased to $818.7
million at March 31, 2016,
from $811.3 million at December 31, 2015. Total non-maturity
deposits grew to $554.8 million at
March 31, 2016, from $551.3 million at December
31, 2015. In addition total certificates of deposit
increased to $263.8 million at
March 31, 2016, from $260.0 million at December
31, 2015.
Stockholders' equity increased by $2.0
million to $84.2 million at
March 31, 2016, from $82.2 million at December
31, 2015. This increase reflects the $1.5 million of net income earned for the 2016
first quarter and a $764,000 increase
in accumulated other comprehensive income resulting from the
mark-to-market adjustment of the available-for-sale securities
portfolio, net of $237,000 dividends
declared.
The tangible equity to assets ratio increased to 8.31% at
March 31, 2016, from 8.04% at
December 31, 2015. The tangible
book value per common share increased to $8.23 at March 31,
2016, from $8.02 at
December 31, 2015.
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 was 0.63% for the
2016 first quarter compared to 0.33% for the 2015 first
quarter. ROE was 6.97% for the 2016 first quarter, compared
to 3.61% for the 2015 first quarter. The efficiency ratio
(non-interest expenses as a percentage of net interest income plus
non-interest income) improved to 80.74% for the 2016 first quarter
compared to 91.30% for the 2015 first quarter. The efficiency
ratio measures the proportion of net operating revenues that are
absorbed by overhead expenses. We anticipate the efficiency
ratio to improve as we continue to execute on the branch
acquisition strategy and explore opportunities to increase
operating leverage and gain efficiencies from our branch
network.
Corporate and Investor Information. First South 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 30 full service branch
offices located throughout eastern and central North
Carolina. First South Bank is a wholly-owned subsidiary of
First South Bancorp, Inc.
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.
Non-GAAP Financial Measures. This press release and the
accompanying Supplemental Financial Data contain financial
information determined by methods other than in accordance with
accounting principles generally accepted in the United States ("GAAP"). 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 in the
current period. 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. See the
disclosures above and in the Supplemental Financial Data for
reconciliations of any non-GAAP measures to the most directly
comparable GAAP measure.
(More)
(NASDAQ: FSBK)
First South
Bancorp, Inc. and Subsidiary
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
Assets
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
17,729,075
|
|
$
|
19,425,747
|
Interest-bearing
deposits with banks
|
|
|
18,385,994
|
|
|
18,565,521
|
Investment securities
available-for-sale, at fair value
|
|
|
213,011,148
|
|
|
248,294,725
|
Investment securities
held-to-maturity
|
|
|
508,746
|
|
|
508,456
|
Mortgage loans held
for sale
|
|
|
2,489,873
|
|
|
3,943,798
|
|
|
|
|
|
|
|
Loans and leases held
for investment
|
|
|
639,044,574
|
|
|
607,014,247
|
Allowance for loan
and lease losses
|
|
|
(8,135,054)
|
|
|
(7,866,523)
|
Net loans and leases held for investment
|
|
|
630,909,520
|
|
|
599,147,724
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
|
12,143,734
|
|
|
13,664,937
|
Assets held for
sale
|
|
|
1,083,320
|
|
|
-
|
Other real estate
owned
|
|
|
5,956,092
|
|
|
6,125,054
|
Federal Home Loan
Bank stock, at cost
|
|
|
1,828,700
|
|
|
2,369,300
|
Accrued interest
receivable
|
|
|
2,845,975
|
|
|
2,874,506
|
Goodwill
|
|
|
4,218,576
|
|
|
4,218,576
|
Mortgage servicing
rights
|
|
|
1,247,005
|
|
|
1,265,589
|
Identifiable
intangible assets
|
|
|
1,824,432
|
|
|
1,895,514
|
Bank-owned life
insurance
|
|
|
17,653,186
|
|
|
15,635,140
|
Prepaid expenses and
other assets
|
|
|
8,272,379
|
|
|
8,348,385
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
940,107,755
|
|
$
|
946,282,972
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
bearing demand
|
|
$
|
164,244,311
|
|
$
|
169,545,849
|
Interest
bearing demand
|
|
|
244,323,710
|
|
|
246,376,521
|
Savings
|
|
|
146,254,503
|
|
|
135,369,668
|
Large
denomination certificates of deposit
|
|
|
119,229,985
|
|
|
116,299,196
|
Other time
deposits
|
|
|
144,614,799
|
|
|
143,730,993
|
Total deposits
|
|
|
818,667,308
|
|
|
811,322,227
|
|
|
|
|
|
|
|
Borrowings
|
|
|
21,500,000
|
|
|
37,000,000
|
Junior subordinated
debentures
|
|
|
10,310,000
|
|
|
10,310,000
|
Other
liabilities
|
|
|
5,451,329
|
|
|
5,479,971
|
Total liabilities
|
|
|
855,928,637
|
|
|
864,112,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01
par value, 25,000,000 shares authorized;
|
|
|
|
|
|
|
9,493,776 and 9,489,222 shares outstanding, respectively
|
|
|
94,938
|
|
|
94,892
|
Additional paid-in
capital
|
|
|
35,957,524
|
|
|
35,936,911
|
Retained
earnings
|
|
|
44,914,635
|
|
|
43,691,073
|
Accumulated other
comprehensive income
|
|
|
3,212,021
|
|
|
2,447,898
|
Total stockholders' equity
|
|
|
84,179,118
|
|
|
82,170,774
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
940,107,755
|
|
$
|
946,282,972
|
|
|
|
|
|
|
|
First South
Bancorp, Inc. and Subsidiary
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
Three Months Ended
March 31, 2016 and 2015
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and
fees on loans
|
|
|
$
|
7,191,595
|
|
$
|
5,934,518
|
Interest on
investments and deposits
|
|
|
1,480,252
|
|
|
1,829,978
|
Total interest income
|
|
|
8,671,847
|
|
|
7,764,496
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
|
669,276
|
|
|
569,748
|
Interest on
borrowings
|
|
|
|
73,086
|
|
|
95
|
Interest on
junior subordinated notes
|
|
|
140,039
|
|
|
138,500
|
Total interest expense
|
|
|
882,401
|
|
|
708,343
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
7,789,446
|
|
|
7,056,153
|
Provision for credit
losses
|
|
|
|
225,000
|
|
|
-
|
Net interest income after provision for credit losses
|
|
|
7,564,446
|
|
|
7,056,153
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
Deposit fees
and service charges
|
|
|
1,907,407
|
|
|
1,872,195
|
Loan fees and
charges
|
|
|
|
56,985
|
|
|
53,148
|
Mortgage loan
servicing fees
|
|
|
234,001
|
|
|
238,742
|
Gain on sale
and other fees on mortgage loans
|
|
|
413,861
|
|
|
384,985
|
Gain (loss) on
sale of other real estate, net
|
|
|
(12,168)
|
|
|
45,867
|
Gain on sale
of investment securities
|
|
|
283,514
|
|
|
250,781
|
Other
income
|
|
|
|
692,285
|
|
|
334,144
|
Total non-interest income
|
|
|
3,575,885
|
|
|
3,179,862
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Compensation
and fringe benefits
|
|
|
5,039,954
|
|
|
4,733,622
|
Federal
deposit insurance premiums
|
|
|
161,609
|
|
|
133,243
|
Premises and
equipment
|
|
|
|
1,373,809
|
|
|
1,373,927
|
Advertising
|
|
|
|
187,818
|
|
|
162,684
|
Data
processing
|
|
|
|
796,487
|
|
|
1,106,845
|
Amortization
of intangible assets
|
|
|
131,527
|
|
|
127,459
|
Other real
estate owned expense
|
|
|
93,674
|
|
|
206,742
|
Other
|
|
|
|
1,321,048
|
|
|
1,409,722
|
Total non-interest expense
|
|
|
9,105,926
|
|
|
9,254,244
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
|
2,034,405
|
|
|
981,771
|
Income tax
expense
|
|
|
|
573,611
|
|
|
256,694
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
$
|
1,460,794
|
|
$
|
725,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.15
|
|
$
|
0.08
|
Diluted
|
|
|
$
|
0.15
|
|
$
|
0.08
|
Dividends per
share
|
|
|
$
|
0.025
|
|
$
|
0.025
|
Average basic shares
outstanding
|
|
|
9,491,201
|
|
|
9,570,820
|
Average diluted
shares outstanding
|
|
|
9,514,797
|
|
|
9,590,979
|
|
|
|
|
|
|
|
|
First South
Bancorp, Inc.
|
Supplemental
Financial Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
Date
|
|
|
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
|
|
(dollars in thousands except per share data)
|
Consolidated balance
sheet data:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
940,108
|
$
|
946,283
|
$
|
913,368
|
$
|
899,390
|
$
|
879,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale:
|
$
|
2,490
|
$
|
3,944
|
$
|
4,029
|
$
|
6,171
|
$
|
7,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment (HFI):
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
$
|
73,412
|
$
|
71,866
|
$
|
71,148
|
$
|
68,812
|
$
|
66,957
|
|
Commercial
|
|
482,779
|
|
454,877
|
|
419,784
|
|
399,734
|
|
346,326
|
|
Consumer
|
|
64,521
|
|
63,036
|
|
61,934
|
|
62,265
|
|
62,756
|
|
Leases
|
|
|
18,333
|
|
17,235
|
|
14,438
|
|
12,825
|
|
12,637
|
|
Total loans held for investment
|
|
639,045
|
|
607,014
|
|
567,304
|
|
543,636
|
|
488,676
|
Allowance for loan
and lease losses
|
|
(8,135)
|
|
(7,867)
|
|
(7,570)
|
|
(7,364)
|
|
(7,203)
|
Net loans held for
investment
|
$
|
630,910
|
$
|
599,147
|
$
|
559,734
|
$
|
536,272
|
$
|
481,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & interest
bearing deposits
|
$
|
36,115
|
$
|
37,991
|
$
|
42,686
|
$
|
36,600
|
$
|
59,641
|
Investment
securities
|
|
213,520
|
|
248,803
|
|
248,861
|
|
260,628
|
|
272,990
|
Premises and
equipment
|
|
12,144
|
|
13,665
|
|
15,290
|
|
15,246
|
|
15,481
|
Goodwill
|
|
|
4,219
|
|
4,219
|
|
4,219
|
|
4,219
|
|
4,219
|
Identifiable
intangible asset
|
|
1,824
|
|
1,896
|
|
1,967
|
|
2,039
|
|
2,111
|
Mortgage servicing
rights
|
|
1,247
|
|
1,266
|
|
1,229
|
|
1,213
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
$
|
164,244
|
$
|
169,546
|
$
|
157,609
|
$
|
158,929
|
$
|
147,946
|
Interest
checking
|
|
171,323
|
|
173,934
|
|
167,673
|
|
169,736
|
|
180,114
|
Money
market
|
|
|
73,000
|
|
72,442
|
|
68,443
|
|
69,646
|
|
84,379
|
Savings
|
|
|
146,255
|
|
135,370
|
|
133,570
|
|
131,078
|
|
123,457
|
Certificates
|
|
|
263,845
|
|
260,030
|
|
256,016
|
|
243,480
|
|
248,129
|
|
Total
deposits
|
$
|
818,667
|
$
|
811,322
|
$
|
783,311
|
$
|
772,869
|
$
|
784,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
$
|
21,500
|
$
|
37,000
|
$
|
33,000
|
$
|
32,000
|
$
|
0
|
Junior subordinated
debentures
|
|
10,310
|
|
10,310
|
|
10,310
|
|
10,310
|
|
10,310
|
Stockholders'
equity
|
|
84,179
|
|
82,171
|
|
81,623
|
|
79,687
|
|
80,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
8,672
|
$
|
8,569
|
$
|
8,217
|
$
|
7,901
|
$
|
7,764
|
Interest
expense
|
|
882
|
|
841
|
|
794
|
|
712
|
|
708
|
Net interest
income
|
|
7,790
|
|
7,728
|
|
7,423
|
|
7,189
|
|
7,056
|
Provision for credit
losses
|
|
225
|
|
325
|
|
335
|
|
140
|
|
0
|
Noninterest
income
|
|
3,576
|
|
3,736
|
|
3,766
|
|
3,616
|
|
3,180
|
Noninterest
expense
|
|
9,106
|
|
9,087
|
|
9,007
|
|
9,026
|
|
9,254
|
Income before
taxes
|
|
2,035
|
|
2,052
|
|
1,847
|
|
1,639
|
|
982
|
Income tax
expense
|
|
574
|
|
484
|
|
610
|
|
485
|
|
257
|
Net income
|
|
$
|
1,461
|
$
|
1,568
|
$
|
1,237
|
$
|
1,154
|
$
|
725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
pre-provision operating
|
|
|
|
|
|
|
|
|
|
|
earnings
(non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
$
|
2,035
|
$
|
2,052
|
$
|
1,847
|
$
|
1,639
|
$
|
982
|
Provision for credit
losses
|
|
225
|
|
325
|
|
335
|
|
140
|
|
0
|
Pre-tax pre-provision
net income
|
|
2,260
|
|
2,377
|
|
2,182
|
|
1,779
|
|
982
|
Securities (gains)
losses, net
|
|
(284)
|
|
(463)
|
|
(503)
|
|
(201)
|
|
(251)
|
OREO
valuations
|
|
7
|
|
100
|
|
10
|
|
41
|
|
44
|
OREO (gains) losses,
(net)
|
|
12
|
|
(30)
|
|
63
|
|
(27)
|
|
(46)
|
Adjusted pre-tax
pre-provision operating
|
|
|
|
|
|
|
|
|
|
|
|
earnings
(non-GAAP)
|
$
|
1,995
|
$
|
1,984
|
$
|
1,752
|
$
|
1,592
|
$
|
729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.15
|
$
|
0.17
|
$
|
0.13
|
$
|
0.12
|
$
|
0.08
|
Diluted earnings per
share
|
$
|
0.15
|
$
|
0.16
|
$
|
0.13
|
$
|
0.12
|
$
|
0.08
|
Dividends per
share
|
$
|
0.025
|
$
|
0.025
|
$
|
0.025
|
$
|
0.025
|
$
|
0.025
|
Book value per
share
|
$
|
8.87
|
$
|
8.66
|
$
|
8.60
|
$
|
8.38
|
$
|
8.50
|
Tangible book value
per share
|
$
|
8.23
|
$
|
8.02
|
$
|
7.95
|
$
|
7.73
|
$
|
7.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average basic
shares
|
|
9,491,201
|
|
9,489,222
|
|
9,500,885
|
|
9,526,656
|
|
9,570,820
|
Average diluted
shares
|
|
9,514,797
|
|
9,513,916
|
|
9,520,943
|
|
9,546,235
|
|
9,590,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First South
Bancorp, Inc.
|
Supplemental
Financial Data (Unaudited)
|
|
|
|
|
|
|
Quarter to
Date
|
|
|
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
|
|
(dollars in thousands except per share data)
|
Performance ratios
(tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Yield on average
earning assets
|
|
4.05%
|
|
4.03%
|
|
4.01%
|
|
4.02%
|
|
3.97%
|
Cost of interest
bearing liabilities
|
|
0.52%
|
|
0.49%
|
|
0.48%
|
|
0.45%
|
|
0.44%
|
Net interest
spread
|
|
3.53%
|
|
3.54%
|
|
3.53%
|
|
3.57%
|
|
3.53%
|
Net interest
margin
|
|
3.64%
|
|
3.64%
|
|
3.63%
|
|
3.67%
|
|
3.62%
|
Avg earning assets to
total avg assets
|
|
92.20%
|
|
92.19%
|
|
91.65%
|
|
91.33%
|
|
91.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized)
|
|
0.63%
|
|
0.67%
|
|
0.54%
|
|
0.53%
|
|
0.33%
|
Return on average
equity (annualized)
|
|
6.97%
|
|
7.52%
|
|
5.99%
|
|
5.66%
|
|
3.61%
|
Efficiency
ratio
|
|
80.74%
|
|
81.41%
|
|
82.26%
|
|
83.71%
|
|
91.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
$
|
938,702
|
$
|
930,978
|
$
|
904,017
|
$
|
877,480
|
$
|
879,223
|
Average earning
assets
|
$
|
865,463
|
$
|
858,243
|
$
|
828,538
|
$
|
801,396
|
$
|
802,387
|
Average
equity
|
$
|
84,265
|
$
|
82,713
|
$
|
81,975
|
$
|
81,799
|
$
|
81,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/Assets
|
|
|
8.95%
|
|
8.68%
|
|
8.94%
|
|
8.86%
|
|
9.21%
|
Tangible
Equity/Assets
|
|
8.31%
|
|
8.04%
|
|
8.26%
|
|
8.16%
|
|
8.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality data
and ratios:
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Non-TDR nonaccrual
loans
|
|
|
|
|
|
|
|
|
|
|
|
Earning
|
|
$
|
945
|
$
|
985
|
$
|
799
|
$
|
990
|
$
|
858
|
|
Non-Earning
|
|
895
|
|
710
|
|
964
|
|
806
|
|
1,158
|
|
Total Non-TDR nonaccrual
loans
|
$
|
1,840
|
$
|
1,695
|
$
|
1,763
|
$
|
1,796
|
$
|
2,016
|
|
TDR nonaccrual
loans
|
|
|
|
|
|
|
|
|
|
|
|
Past Due
TDRs
|
$
|
847
|
$
|
1,343
|
$
|
1,250
|
$
|
1,065
|
$
|
1,206
|
|
Current
TDRs
|
|
154
|
|
159
|
|
463
|
|
1,459
|
|
1,194
|
|
Total TDR nonaccrual
loans
|
$
|
1,001
|
$
|
1,502
|
$
|
1,713
|
$
|
2,524
|
$
|
2,400
|
Total nonaccrual
loans
|
$
|
2,841
|
$
|
3,197
|
$
|
3,476
|
$
|
4,320
|
$
|
4,416
|
Loans >90 days
past due, still accruing
|
|
153
|
|
115
|
|
183
|
|
248
|
|
0
|
Other real estate
owned
|
|
5,956
|
|
6,125
|
|
6,506
|
|
7,009
|
|
7,082
|
Total nonperforming
assets
|
$
|
8,950
|
$
|
9,437
|
$
|
10,165
|
$
|
11,577
|
$
|
11,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses to
|
|
|
|
|
|
|
|
|
|
|
|
loans held for
investment
|
|
1.27%
|
|
1.30%
|
|
1.33%
|
|
1.35%
|
|
1.47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries)
|
$
|
(44)
|
$
|
28
|
$
|
129
|
$
|
(21)
|
$
|
317
|
Net charge-offs
(recoveries) to total loans
|
|
-0.01%
|
|
0.00%
|
|
0.02%
|
|
0.00%
|
|
0.06%
|
Total nonaccrual
loans to total loans HFI
|
|
0.44%
|
|
0.53%
|
|
0.61%
|
|
0.79%
|
|
0.90%
|
Total nonperforming
assets to total assets
|
|
0.95%
|
|
1.00%
|
|
1.11%
|
|
1.29%
|
|
1.31%
|
Total loans to total
deposits
|
|
78.36%
|
|
75.30%
|
|
72.94%
|
|
71.14%
|
|
63.34%
|
Total loans to total
assets
|
|
68.24%
|
|
64.56%
|
|
62.55%
|
|
61.13%
|
|
56.48%
|
Loans serviced for
others
|
$
|
293,548
|
$
|
297,494
|
$
|
297,764
|
$
|
300,801
|
$
|
301,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information
contact:
|
Bruce Elder
(CEO)
|
(252)
940-4936
|
Scott McLean
(CFO)
|
(252)
940-5016
|
Website:
www.firstsouthnc.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/first-south-bancorp-inc-reports-march-31-2016-quarterly-operating-results-300251850.html
SOURCE First South Bancorp, Inc.