Dallas, Texas 09/05/2013 (Financialstrend) – With its fleet of 26 full service branches around Carolina, First South Bancorp, Inc. (NASDAQ:FSBK) provides various services through its portfolio of deposit products, loan products and securities brokerage services. Founded in 1902 FSBK operates as bank holding company for First South Bank.
The stock closed at $6.47 on Wednesday, Sep 4 around 6% below its 52-week high of $6.88. The stock has traded in a narrow range of $6.19-$6.79 since mid of March after marking its 52-week high. The stock currently trades around 5.4% above its 200-day SMA and the market capital of the company stands at $63.09 million with 9.75 million shares outstanding.
The company reported its net income at $1.76 million for the 2Q13, almost over 250% jump compared to $0.48 million during 2Q12 and around 12.7% more from $1.57 million during the preceding quarter 1Q13. EPS increased to $0.18 for the 2Q13 from $0.05 during 2Q12 and $0.16 during the preceding quarter 1Q13.
The improvements in first half of FY13 performance is mainly attributed to decrease in provision for loan losses and non-interest expenses alongside improvised core non-interest income. Total non-interest income for 2Q13 was reported to $2.9 million compared to $2.7 million for 2Q12.
However decline in earning assets adversely affected net interest income which declined over $2.4 million to $15.3 million during first half of FY13 from $17.7 million during first half of FY12 – partially offsetting the earning growths reported for the period.
President and CEO of the company, Bruce Elder made a note that positive earnings growth during first half of FY13 is also attributed to bulk sale of problem held-for-sale loans executed earlier this year. The valuation adjustment on OREO were reflected in 4Q12 where net income was down to ($12.89) million. He also added that the company focus for the remaining half of the FY13 would be to grow earning assets and device operating strategies for substantial development amidst the rising interest rate environment.