First South Bancorp Inc (FSBK, Financial) filed Annual Report for the period ended 2011-12-31.
First South Bcp has a market cap of $40.2 million; its shares were traded at around $4.16 with a P/E ratio of 25.8 and P/S ratio of 0.8.
Mortgage-backed securities increased to $138.5 million at December 31, 2011, from $98.9 million at December 31, 2010. The Bank purchased $23.1 million of mortgage-backed securities available for sale during 2011, compared to none purchased during 2010. The Bank securitized $37.2 million of mortgage loans held for sale into mortgage-backed securities during 2011, compared to $48.4 million securitized during 2010. Loan securitizations help support a more balanced sensitivity to future interest rate changes and provide additional funds for maintaining adequate liquidity levels. The Bank sold $11.9 million mortgage-backed securities available for sale in 2011, compared to $37.8 million sold in 2010. Proceeds from sales of mortgage-backed securities are used in daily liquidity management activities including funding borrowing maturities, deposit withdrawals or are reinvested into new investment securities or short-term interest bearing overnight funds.
Residential mortgage loans increased to $68.2 million at December 31, 2011, from $56.5 million at December 31, 2010, reflecting the net effect of principal repayments, originations, sales and securitizations. The Bank originated $74.6 million of held for sale residential mortgage loans during 2011, compared to $95.1 million originated during 2010. The Bank also originated $20.5 million of residential mortgage loans for investors during 2011, compared to $26.0 million originated for investors during 2010. The Bank sold $23.7 million of loans held for sale during 2011, compared to $39.1 million sold during 2010. Loan sales help reduce exposure to future interest rate changes, provide funds for new loan originations and deposit withdrawals, and support daily liquidity management activities.
Gains from the sale of mortgage-backed securities available for sale declined to $519,000 for 2011, from $1.7 million for 2010. The Bank sold $11.9 million of mortgage-backed securities available for sale during 2011, compared to $37.8 million sold during 2010. The Bank recorded net losses from the sales of other real estate owned of $68,000 for 2011, compared to $523,000 for 2010, in management’s best efforts to convert these nonperforming assets into earning assets. The Bank sold $5.7 million of other real estate owned during 2011, compared to $12.6 million sold during 2010.
Gains from mortgage loan sales were $1.2 million for both 2010 and 2009. Proceeds from sales of loans were $39.1 million for 2010, compared to $34.3 million for 2009. Gains from sales of investment and mortgage-backed securities increased to $1.7 million for 2010, from $918,000 for 2009. The Bank sold $38.3 million of these securities during 2010, compared to $20.9 million sold in 2009. The Bank recorded losses from the sales of other real estate owned of $523,000 for 2010, compared to $201,000 for 2009. The Bank sold $12.6 million of other real estate owned during 2010, compared to $10.5 million sold during 2009.
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First South Bcp has a market cap of $40.2 million; its shares were traded at around $4.16 with a P/E ratio of 25.8 and P/S ratio of 0.8.
Highlight of Business Operations:
Construction Lending. The Bank also offers residential and commercial construction loans, with a substantial portion of such loans originated to date being for the construction of single-family dwellings in the Bank’s primary market area. Residential construction loans are offered primarily to individuals building their primary, investment or secondary residence, as well as to selected local builders to build single-family dwellings. Generally, loans to owner/occupants for the construction of owner-occupied, single-family residential properties are originated in connection with the permanent loan on the property and have a construction term of 6 to 18 months. Such loans are offered on a fixed-rate or adjustable-rate basis. Generally, interest rates on residential construction loans made to the owner/occupant have interest rates during the construction period above the rate offered by the Bank on the permanent loan product selected by the borrower. Upon completion of construction, the permanent loan rate will be set at the rate then offered by the Bank on that permanent loan product, not to exceed the predetermined permanent rate cap. Interest rates on residential construction loans to builders are generally set at the prime rate plus a margin of between 0.0% and 1.0% and adjust either monthly or daily. Interest rates on commercial construction loans are generally based on the prime rate plus a negotiated margin of between 0.0% and 1.0% and adjust either monthly or daily, with construction terms generally not exceeding 18 months. Advances are made on a percentage of completion basis. The Bank has restricted originating speculative construction loans, and has limited most new construction lending to those with contracts or pre-sales and to builders who hold lot inventory financed by the Bank, with limited exceptions as approved by credit administration. At December 31, 2011, commercial construction loans totaled $25.4 million, which amounted to 4.7% of the gross loan portfolio.Mortgage-backed securities increased to $138.5 million at December 31, 2011, from $98.9 million at December 31, 2010. The Bank purchased $23.1 million of mortgage-backed securities available for sale during 2011, compared to none purchased during 2010. The Bank securitized $37.2 million of mortgage loans held for sale into mortgage-backed securities during 2011, compared to $48.4 million securitized during 2010. Loan securitizations help support a more balanced sensitivity to future interest rate changes and provide additional funds for maintaining adequate liquidity levels. The Bank sold $11.9 million mortgage-backed securities available for sale in 2011, compared to $37.8 million sold in 2010. Proceeds from sales of mortgage-backed securities are used in daily liquidity management activities including funding borrowing maturities, deposit withdrawals or are reinvested into new investment securities or short-term interest bearing overnight funds.
Residential mortgage loans increased to $68.2 million at December 31, 2011, from $56.5 million at December 31, 2010, reflecting the net effect of principal repayments, originations, sales and securitizations. The Bank originated $74.6 million of held for sale residential mortgage loans during 2011, compared to $95.1 million originated during 2010. The Bank also originated $20.5 million of residential mortgage loans for investors during 2011, compared to $26.0 million originated for investors during 2010. The Bank sold $23.7 million of loans held for sale during 2011, compared to $39.1 million sold during 2010. Loan sales help reduce exposure to future interest rate changes, provide funds for new loan originations and deposit withdrawals, and support daily liquidity management activities.
Gains from the sale of mortgage-backed securities available for sale declined to $519,000 for 2011, from $1.7 million for 2010. The Bank sold $11.9 million of mortgage-backed securities available for sale during 2011, compared to $37.8 million sold during 2010. The Bank recorded net losses from the sales of other real estate owned of $68,000 for 2011, compared to $523,000 for 2010, in management’s best efforts to convert these nonperforming assets into earning assets. The Bank sold $5.7 million of other real estate owned during 2011, compared to $12.6 million sold during 2010.
Gains from mortgage loan sales were $1.2 million for both 2010 and 2009. Proceeds from sales of loans were $39.1 million for 2010, compared to $34.3 million for 2009. Gains from sales of investment and mortgage-backed securities increased to $1.7 million for 2010, from $918,000 for 2009. The Bank sold $38.3 million of these securities during 2010, compared to $20.9 million sold in 2009. The Bank recorded losses from the sales of other real estate owned of $523,000 for 2010, compared to $201,000 for 2009. The Bank sold $12.6 million of other real estate owned during 2010, compared to $10.5 million sold during 2009.
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