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First South Bancorp Inc Reports Operating Results (10-Q)

May 07, 2010 | About:
10qk

10qk

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First South Bancorp Inc (FSBK) filed Quarterly Report for the period ended 2010-03-31.

First South Bancorp Inc has a market cap of $121.8 million; its shares were traded at around $12.5 with a P/E ratio of 18.4 and P/S ratio of 2.1. The dividend yield of First South Bancorp Inc stocks is 6.4%. First South Bancorp Inc had an annual average earning growth of 37.1% over the past 10 years.
This is the annual revenues and earnings per share of FSBK over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FSBK.


Highlight of Business Operations:

Comparison of Financial Condition at March 31, 2010 and December 31, 2009. Total assets were $800.6 million at March 31, 2010 compared to $829.9 at December 31, 2009. Earning assets were $733.8 million at March 31, 2010 compared to $761.9 million at December 31, 2009, reflecting the net change in the composition of earning assets, as further discussed below. Earning assets were 91.7% of total assets at March 31, 2010 compared to 91.8% at December 31, 2009.

Mortgage-backed securities available for sale were $94.3 million at March 31, 2010, compared to $96.7 million at December 31, 2009. The Bank may sell mortgage-backed securities to support a more balanced sensitivity to future interest rate changes and may also securitize mortgage loans held for sale into mortgage-backed securities to maintain adequate liquidity levels. During the quarter ended March 31, 2010, the Bank sold $8.4 million mortgage-backed securities available for sale compared to none for the quarter ending March 31, 2009. During the quarter ended March 31, 2010, $8.9 million of mortgage loans held for sale were securitized into mortgage-backed securities available for sale, compared to $21.3 million securitized during the quarter ended March 31, 2009.

Loans held for sale were $4.6 million at March 31, 2010 compared to $6.5 million at December 31, 2009. Proceeds from loan sales were $9.4 million for the quarter ended March 31, 2010, compared to $7.5 million for the quarter ended March 31, 2009. The Bank also sells certain mortgage loans to support a more balanced sensitivity to future interest rate changes. Proceeds from loan sales are used to fund liquidity needs of the Bank, including new loan originations, repayment of borrowings, deposit outflows and general operations of the Bank. Loans serviced for others were $296.5 million at March 31, 2010, compared to $289.3 million at December 31, 2009.

Other real estate owned declined to $8.4 million at March 31, 2010 from $10.6 million at the December 31, 2009, reflecting the net of new foreclosures of certain non-performing loans, sales and fair value adjustments. During the quarter ended March 31, 2010 there were $1.3 million of new foreclosures, $2.5 million of sales and $1.0 million of fair value adjustments. Other real estate owned consists of residential and commercial properties, developed building lots and a partially developed residential subdivision. The Bank believes the adjusted carrying values of these properties are representative of their fair market values, although there can be no assurances that the ultimate sales will be equal to or greater than the carrying values. See “Note 6. Fair Value Heirarchy” of “Notes to Consolidated Financial Statements (Unaudited)” for additional information.

Borrowed money consisting of FHLB advances and repurchase agreements declined to $12.4 million at March 31, 2010 from $37.4 million at December 31, 2009. FHLB advances declined to $10.0 million at March 31, 2010 from $35.0 million at December 31, 2009, as the Bank repaid a $25.0 million 3.0% fixed-rate advance during the quarter ended March 31, 2010. Repurchase agreements (cash management accounts for commercial banking customers) were $2.4 million at both March 31, 2010 and December 31, 2009.

Comparison of Operating Results - Quarter ended March 31, 2010 and 2009. Net income for the quarter ended March 31, 2010 was $1.5 million, compared to $2.0 million for the quarter ended March 31, 2009. Diluted earnings per share were $0.16 per share for the quarter ended March 31, 2010, compared to $0.21 per share for the quarter ended March 31, 2009.

Read the The complete Report

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