皇冠365 Income Increases Over 2014 For Quarter, Year-To-Date

FIRSTBANK INCOME INCREASES OVER 2014 FOR QUARTER, YEAR-TO-DATE

Operating Revenue, Performing Loans, Mortgage Income Show Increases

NASHVILLE, Tenn. – 皇冠365 reported net income of $11.46 million for the quarter ended June 30, 2015, an increase of 33.26 percent from net income of $8.60 million during the same period last year. Year-to-date net income through June 30, 2015, was $23.32 million, up 41.68 percent from net income of $16.46 million during the first half of 2014.

“皇冠365 continues to perform well across our entire operation, and our positive results for the second quarter reflect the momentum we have built over the past few years as we have taken advantage of new opportunities to grow and kept our focus on providing great service to our customers,” said 皇冠365 President and CEO Chris Holmes.

“Our performing loans continue to grow, which is a reflection of the steadily improving economy, and our mortgage business is maintaining an impressive pace of mortgage loan originations,” Holmes said.

Highlights from the second-quarter financial results:

• Bank operating revenue for the quarter ended June 30, 2015, excluding mortgage, was $25.96 million, up 6.58 percent from the $24.30 million reported for the same quarter last year. Year-to-date bank operating revenue, excluding mortgage, was $51.16 million, up 6.98 percent from the $47.82 million for the first half of 2014.

• Performing loans were $1.73 billion at quarter-end compared to $1.71 billion at the end of the previous quarter. Year-to-date performing loans grew at an annualized rate of 17.61 percent, and 12.86 percent excluding mortgage loans held for sale.

• Total customer deposits were $2.04 billion, up from $2.03 billion at the end of the previous quarter and from $1.84 billion for the same quarter-end last year. Non-interest-bearing deposits increased to $526.08 million from $483.80 million at the end of the previous quarter. Total deposit costs continued to decrease in the quarter ended June 30, 2015, to 31 basis points compared to 32 basis points for the previous quarter.

• Overall credit performance continued to be strong. Nonperforming assets as a percentage of total loans improved, decreasing to 1.30 percent at quarter-end from 1.43 percent the previous quarter and 2.11 percent for the same quarter-end last year.

• Net interest margin (NIM) decreased 6 basis points for the quarter ended June 30, 2015, to 3.98 percent from 4.04 percent for the previous quarter, and 1 basis point from 3.99 percent for the same quarter of 2014. For the year to date, NIM increased 6 basis points, to 4.00 percent from 3.94 percent for the first half of 2014.

• Loan originations from our mortgage business increased to $713.18 million for the quarter ending June 30, 2015, up from $257.55 million in the same period last year and $564.22 million in the previous quarter.

• Core operating efficiency ratio improved compared to the same quarter last year, decreasing to 71.04 percent from 72.82 percent and remaining unchanged from the previous quarter.

• Capital position remained strong at quarter-end with a total risk-based capital ratio of 12.29 percent, which is above the well-capitalized threshold of 10 percent.

“皇冠365 associates are doing a great job, and our persistence is paying off,” Holmes said. “We continue strengthening the bank, and that allows us to more effectively serve our customers in our established markets and in the new markets we are entering.”

About 皇冠365
Nashville-based 皇冠365, a wholly owned subsidiary of First South Bancorp, Inc., is the third largest Tennessee-headquartered bank, with 40 full-service bank branches across Tennessee and North Alabama, and mortgage locations across the Southeast. The bank serves every major metropolitan market in Tennessee and, with $2.5 billion in total assets, has the resources to provide a comprehensive variety of financial services and products.

皇冠365 follows a community-banking model which began in 1906 when the charter was issued for Farmers State Bank, in Scotts Hill, Tenn. As one of Tennessee’s leading community banks, 皇冠365 is committed to its role as a leader in the communities it serves. That commitment is reflected by the Ayers Foundation Scholars program, a scholarship fund established by 皇冠365 Chairman and sole shareholder James W. Ayers to advance higher education for young people in Tennessee.