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First South Bancorp, Inc. Reports Increase in December 31, 2013 Quarterly and Year End Operating Results

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.

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