SUFFOLK, Va., Jan. 26, 2017 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the “Bank” or “Company”) (NASDAQ:TOWN) today reported financial results for the full year and the fourth quarter ended December 31, 2016.
Record Earnings for Full Year 2016
The Bank reported record annual earnings of $67.25 million for the year ended December 31, 2016, as compared to the $62.38 million reported in 2015, representing a 7.80% increase. Fully diluted earnings per share were $1.18 per share compared to $1.22 per share for 2015. Earnings per share were affected in 2016 by the issuance of 10.49 million new common shares in conjunction with the acquisition of Monarch Financial Holdings, Inc. (“Monarch”) on June 24, 2016.
Excluding after-tax acquisition-related expenses, core earnings for the year ended December 31, 2016 were $80.15 million (non-GAAP) compared to $63.24 million (non-GAAP) in 2015. Fully diluted core earnings per share, excluding after-tax acquisition-related expenses, were $1.41 (non-GAAP measure) compared to $1.24 (non-GAAP measure) for 2015.
The Bank’s quarterly dividend was increased to $0.13 per share beginning in the second quarter of 2016 resulting in total dividends of $0.51 per share for 2016, an increase of 8.5% over 2015. On an annualized basis, the current annual dividend rate is $0.52 per share.
“We are pleased to announce our 17th consecutive year of record annual earnings,” said G. Robert Aston, Jr., Chairman and Chief Executive Officer. “We finished 2016 with revenue growth of $76.37 million, or 25.65%, over 2015, while producing a core return on average assets of 1.11% and a core return on average tangible equity of 11.73%.”
2016 Performance Highlights
- Total revenues were $374.10 million, an increase of $76.37 million, or 25.65% from 2015
- Taxable equivalent net interest margin was 3.50%, including accretion of 11 basis points, compared to 3.45%, including accretion of 9 basis points, for 2015
- Residential mortgage banking income increased $24.58 million, or 71.85%
- Insurance segment total revenue increased 14.67% to $54.51 million - Core net income, excluding after-tax acquisition-related expenses, was $80.15 million, an increase of 26.75% from 2015
- Loans held for investment increased $1.29 billion, or 28.50%, from December 31, 2015 with organic growth of $479.69 million, or 10.61%, excluding $808.14 million of loans acquired in the Monarch merger
- Total deposits were $6.04 billion, an increase of $1.12 billion, or 22.82%, from 2015. The increase included $1.06 billion deposits acquired in the Monarch merger
- Noninterest bearing deposits increased by 39.77%, to $1.95 billion, representing 32.27% of total deposits
- Total cost of deposits remained steady at 0.40% at December 31, 2016 and 2015
- Asset quality showed continued strength
- Nonperforming assets declined to $37.60 million, or 0.47% of total assets compared to $43.09 million, or 0.68%, at December 31, 2015
- Nonperforming loans were 0.23% of period end loans
- Foreclosed property decreased to $21.01 million - Strategic acquisitions
- On January 14, 2016, the Company acquired Oak Island Accommodations, Inc., an independent resort property management company in coastal North Carolina
- On June 24, 2016, the Company completed the acquisition of Monarch and its wholly-owned bank subsidiary, Monarch Bank, headquartered in Chesapeake, Virginia - Banking centers
- On September 15, 2016, the Company opened a new regional headquarters in the Gateway Plaza in downtown Richmond, Virginia
- On December 9, 2016, the Company consolidated its banking office in the Port Warwick area of Newport News, Virginia into the banking office in the Oyster Point area of Newport News, Virginia - The Bank remained well-capitalized
- Common equity tier 1 capital ratio of 11.75%
- Tier 1 leverage capital ratio of 10.44%
- Tier 1 risk-based capital ratio of 11.82%
- Total risk-based capital ratio of 12.44%
Fourth Quarter 2016 Earnings Compared to Fourth Quarter 2015
Net income for the fourth quarter was $19.0 million, or $0.31 per diluted share, versus $12.47 million, or $0.24 per diluted share, in 2015, reflecting strong growth in net interest income as compared to the prior year period.
Performance Highlights
- Total revenues were $101.67 million, a $30.26 million, or 42.37%, increase from fourth quarter 2015
- Taxable equivalent net interest margin was 3.64%, including accretion of 11 basis points, compared to 3.36%, including accretion of 9 basis points. in fourth quarter 2015
- Noninterest income increased 57.57% primarily due to merger-related growth in our residential mortgage banking business
Net Interest Income
Net interest income increased to $62.15 million, a $15.82 million, or 34.15%, increase from fourth quarter 2015. The primary driver was the growth in average earning assets, which increased $1.50 billion, or 25.80%, while tax-equivalent net interest margin increased to 3.64% in the current quarter from 3.36% in fourth quarter 2015. Accretion income added $2.34 million, or 15 basis points, to margin in the current quarter as compared to $1.22 million, or 9 basis points, in the fourth quarter of 2015. The Company expects decreases in BOLI income and accretion income to negatively impact tax-equivalent net interest margin by approximately 7 basis points and 8 basis points, respectively.
Noninterest Income
Noninterest income, excluding gains or losses on investment securities, was $39.51 million for the fourth quarter of 2016, an increase of $14.43 million, or 57.55%, from the fourth quarter of 2015. Residential mortgage banking income increased $10.84 million, or 149.43%, from the fourth quarter of 2015 primarily due to higher production volumes resulting from the Monarch merger. Mortgage production was $1.01 billion in fourth quarter 2016, which was $652.47 million higher than fourth quarter 2015 production of $353.52 million. Insurance commissions and other title fees increased $0.83 million, or 9.18%, primarily due to increases in commercial lines and travel insurance commissions combined with increased title income. Also contributing to the increase, other income was higher by $1.63 million primarily due to a rise in BOLI income of $0.87 million combined with an increase in loan service fees and income from Towne Investment Group.
Noninterest Expense
Noninterest expense increased by $20.09 million, or 38.09%, from the fourth quarter of 2015. The primary driver was an increase of $12.24 million in salaries and benefits expense due to the addition of staff resulting from the Monarch acquisition, combined with the addition of staff resulting from the acquisition of a resort property management company in Oak Island, North Carolina ("Oak Island") in first quarter 2016. Also contributing were increases in occupancy expenses of $1.73 million and furniture and equipment expenses of $0.99 million primarily related to mortgage facilities acquired in the Monarch acquisition.
Fourth Quarter 2016 Earnings Compared to Third Quarter 2016
Net income for the fourth quarter was $19.0 million, or $0.31 per diluted share, versus $24.18 million, or $0.39 per diluted share, in third quarter 2016, reflecting the seasonality in our Insurance and Realty segments.
Performance Highlights
- Total revenues were $101.67 million compared to $109.43 million in the third quarter of 2016
- Taxable equivalent net interest margin was 3.64%, including accretion of 11 basis points, compared to 3.57%, including accretion of 17 basis points, in the third quarter of 2016
- Noninterest income, excluding gains on investment securities, decreased $7.31 million due to seasonality in our Insurance and Realty segments - Total loans held for investment increased $155.58 million, or 2.75%, from September 30, 2016
Net Interest Income
On a linked quarter basis, net interest income decreased slightly by $0.45 million or 0.73%, in fourth quarter 2016 versus third quarter 2016, while tax-equivalent net interest margin was 3.64% versus 3.57% for the third quarter of 2016. The decrease in net interest income was primarily due to seasonally lower loans held for sale average balances combined with an increase in FHLB borrowings and lower accretion income. Accretion income added $2.34 million, or 15 basis points, to margin in the current quarter, as compared to $2.63 million, or 17 basis points, in the linked quarter.
Noninterest Income
In comparison to the third quarter of 2016, noninterest income, excluding gains or losses on investment securities, decreased $7.31 million, or 15.61%. Residential mortgage banking income decreased by $3.33 million, or 15.56%, from the third quarter of 2016 primarily due to a seasonal decrease in mortgage production of $240.70 million, from $1.25 billion in third quarter 2016 to $1.01 billion in fourth quarter 2016. A seasonal decrease in policy renewals led to the decrease in net insurance commissions, while decreases in real estate brokerage and property management income from the linked quarter also reflected the seasonal nature of those businesses.
Noninterest Expense
Noninterest expense increased by $1.90 million, or 2.68%, from the third quarter of 2016. The primary driver was an increase in salaries and benefits expenses of $2.57 million, partially offset by a decrease in acquisition-related expenses of $1.68 million, which was primarily due to a fourth quarter 2016 change in estimate of previously accrued expenses related to the disposal of acquired facilities.
Noninterest Income | % Change | ||||||||||||||||
Q4 | Q4 | Q3 | Q4 16 vs. | Q4 16 vs. | |||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | Q4 15 | Q3 16 | ||||||||||||
Residential mortgage banking income, net | $ | 18,096 | $ | 7,255 | $ | 21,430 | 149.43 | % | (15.56 | )% | |||||||
Insurance commissions and other title fees and income, net | 9,823 | 8,997 | 11,258 | 9.18 | % | (12.75 | )% | ||||||||||
Real estate brokerage and property management, net | 2,925 | 2,438 | 6,647 | 19.98 | % | (56.00 | )% | ||||||||||
Service charges on deposit accounts | 2,535 | 2,254 | 2,552 | 12.47 | % | (0.67 | )% | ||||||||||
Credit card merchant fees, net | 1,135 | 767 | 1,365 | 47.98 | % | (16.85 | )% | ||||||||||
Other income | 4,998 | 3,368 | 3,569 | 48.40 | % | 40.04 | % | ||||||||||
Subtotal before gain on investment securities | 39,512 | 25,079 | 46,821 | 57.55 | % | (15.61 | )% | ||||||||||
Net gain on investment securities | 6 | — | — | N/M | N/M | ||||||||||||
Total noninterest income | $ | 39,518 | $ | 25,079 | $ | 46,821 | 57.57 | % | (15.60 | )% |
Noninterest Expense | % Change | ||||||||||||||||
Q4 | Q4 | Q3 | Q4 16 vs. | Q4 16 vs. | |||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | Q4 15 | Q3 16 | ||||||||||||
Salaries and benefits | $ | 43,071 | $ | 30,826 | $ | 40,497 | 39.72 | % | 6.36 | % | |||||||
Occupancy expense | 6,885 | 5,156 | 6,656 | 33.53 | % | 3.44 | % | ||||||||||
Furniture and equipment | 3,378 | 2,390 | 3,199 | 41.34 | % | 5.60 | % | ||||||||||
Acquisition-related expenses | (707 | ) | 285 | 969 | (348.07 | )% | (172.96 | )% | |||||||||
Other expenses | 20,207 | 14,086 | 19,612 | 43.45 | % | 3.03 | % | ||||||||||
Total noninterest expense | $ | 72,834 | $ | 52,743 | $ | 70,933 | 38.09 | % | 2.68 | % | |||||||
Segment Results
$ Change | ||||||||||||||||||||
(in thousands) | Q4 | Q4 | Q3 | Q4 16 vs. | Q4 16 vs. | |||||||||||||||
Segment Net Income (Loss) | 2016 | 2015 | 2016 | Q4 15 | Q3 16 | |||||||||||||||
Banking | $ | 17,931 | $ | 12,219 | $ | 18,276 | $ | 5,712 | $ | (345 | ) | |||||||||
Realty | 673 | 6 | 4,815 | $ | 667 | $ | (4,142 | ) | ||||||||||||
Insurance | 392 | 241 | 1,085 | $ | 151 | $ | (693 | ) | ||||||||||||
Total net income | $ | 18,996 | $ | 12,466 | $ | 24,176 | $ | 6,530 | $ | (5,180 | ) |
Fourth Quarter 2016 Compared to Fourth Quarter 2015
Banking
Net income for the three months ended December 31, 2016 for the Banking segment was $17.93 million, increasing $5.71 million, or 46.75%, from comparative 2015, as net interest income climbed by $13.77 million due to the increase in earning assets from the Monarch merger. Also contributing to the variance was an increase in noninterest income of $2.33 million. These factors were partially offset by increases in the provision for loan losses and noninterest expenses.
Realty
For the three months ended December 31, 2016, the Realty segment increased net income to $0.67 million from $0.01 million for fourth quarter 2015. The improvement was driven by an increase in residential mortgage banking income of $10.93 million, or 146.81%, due to higher production volumes resulting from the Monarch merger and net interest income increased by $2.05 million as higher production volume led to higher average mortgage loans held for sale. These improvements were partially offset by an increase in operational expenses related to the merger with Monarch.
Insurance
The Insurance segment had net income of $0.39 million for the three months ended December 31, 2016, an increase of $0.15 million compared to fourth quarter 2015. The increase in net income was driven by higher property and casualty insurance commission income combined with a decrease in salaries and benefits expenses.
Fourth Quarter 2016 Compared to Third Quarter 2016
Banking
Earnings decreased slightly by $0.35 million, or 1.89% from the third quarter of 2016 as increases in net interest income and noninterest income were overcome by higher personnel costs of $3.26 million, primarily related to performance based staff incentives and employee benefits expenses. Also, loan growth in the quarter led to an increase of $0.11 million in the provision for loan losses.
Realty
Net income in the Realty segment decreased by $4.14 million from the linked quarter ended September 30, 2016, due to due to historically seasonal decreases in the Bank's mortgage, real estate brokerage, and resort property management businesses.
Insurance
Net income decreased $0.69 million from the third quarter of 2016 due to the historically seasonal decrease in fourth quarter policy renewals. The seasonal decrease in revenue was partially offset by a decline in operating expenses during the current quarter.
Balance Sheet
At December 31, 2016, total Bank assets reached $7.97 billion, an increase of $1.68 billion, or 26.64%, over December 31, 2015.
Loans
% Change | |||||||||||||||||
Q4 | Q4 | Q3 | Q4 16 vs. | Q4 16 vs. | |||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | Q4 15 | Q3 16 | ||||||||||||
Construction and land development | $ | 826,027 | $ | 598,875 | $ | 820,453 | 37.93 | % | 0.68 | % | |||||||
Commercial real estate - investment related properties | 1,322,466 | 1,004,393 | 1,283,619 | 31.67 | % | 3.03 | % | ||||||||||
Commercial real estate - owner occupied | 928,846 | 780,000 | 905,870 | 19.08 | % | 2.54 | % | ||||||||||
Multifamily real estate | 222,791 | 167,371 | 206,623 | 33.11 | % | 7.82 | % | ||||||||||
1-4 family residential real estate | 1,215,823 | 973,331 | 1,208,001 | 24.91 | % | 0.65 | % | ||||||||||
Commercial and industrial business loans | 1,089,539 | 857,036 | 1,033,797 | 27.13 | % | 5.39 | % | ||||||||||
Consumer loans and other | 201,729 | 138,387 | 193,279 | 45.77 | % | 4.37 | % | ||||||||||
Total | $ | 5,807,221 | $ | 4,519,393 | $ | 5,651,642 | 28.50 | % | 2.75 | % |
The Bank’s loan portfolio ended the period at $5.81 billion representing an increase of 28.50%, or $1.29 billion, from December 31, 2015, and an increase of $155.58 million, or 2.75%, from September 30, 2016. In addition to organic growth, the increase in loans from the prior year is related to loans acquired in the Monarch merger on June 24, 2016.
Deposits
% Change | |||||||||||||||||
Q4 | Q4 | Q3 | Q4 16 vs. | Q4 16 vs. | |||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | Q4 15 | Q3 16 | ||||||||||||
Noninterest-bearing demand | $ | 1,947,312 | $ | 1,393,264 | $ | 1,974,395 | 39.77 | % | (1.37 | )% | |||||||
Interest-bearing: | |||||||||||||||||
Demand and money market accounts | 2,263,894 | 1,824,226 | 2,207,962 | 24.10 | % | 2.53 | % | ||||||||||
Savings | 319,611 | 300,408 | 315,477 | 6.39 | % | 1.31 | % | ||||||||||
Certificates of deposits | 1,504,380 | 1,396,129 | 1,649,113 | 7.75 | % | (8.78 | )% | ||||||||||
Total | $ | 6,035,197 | $ | 4,914,027 | $ | 6,146,947 | 22.82 | % | (1.82 | )% |
The Bank continued to experience solid deposit growth with total deposits increasing to $6.04 billion, up $1.12 billion, or 22.82%, from December 31, 2015. The increase was primarily due to the deposits acquired in the Monarch merger. The Bank saw continued growth in noninterest-bearing demand deposits, which ended the year at $1.95 billion, a 39.77% increase from the prior year. Noninterest-bearing deposits represented 32.27% of total deposits at December 31, 2016.
Capital Ratios
Q4 | Q4 | Q3 | |||||||
2016 | 2015 | 2016 | |||||||
Common Equity Tier 1 | 11.75 | % | 12.59 | % | 11.74 | % | |||
Tier 1 | 11.82 | % | 12.70 | % | 11.81 | % | |||
Total | 12.44 | % | 13.44 | % | 12.42 | % | |||
Tier 1 Leverage Ratio | 10.44 | % | 10.67 | % | 10.18 | % |
The Bank’s total equity at December 31, 2016 rose to $1.09 billion, an increase of $266.36 million, or 32.48%, from December 31, 2015. Total risk-based capital remained strong as common equity Tier 1, Tier 1 capital, total risk-based capital, and Tier 1 leverage capital ratios were 11.75%, 11.82%, 12.44%, 10.44%, respectively. All ratios exceed the current regulatory standards for well capitalized status.
Asset Quality
(in thousands) | 12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||
Nonperforming loans | $ | 13,099 | $ | 11,337 | $ | 10,580 | $ | 7,944 | $ | 8,670 | |||||||||
Former bank premises | 3,494 | — | — | — | — | ||||||||||||||
Foreclosed property | 21,011 | 22,884 | 25,707 | 29,740 | 34,420 | ||||||||||||||
Total nonperforming assets | $ | 37,604 | $ | 34,221 | $ | 36,287 | $ | 37,684 | $ | 43,090 | |||||||||
Quarterly net loans charged off (recovered) | $ | 485 | $ | 649 | $ | 241 | $ | 340 | $ | (156 | ) | ||||||||
Year-to-date net loans charged off | $ | 1,715 | $ | 1,230 | $ | 581 | $ | 340 | $ | 585 |
Change | ||||||||||||||||||||
Q4 | Q4 | Q3 | Q4 2016 vs. | Q4 2016 vs. | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | Q4 2015 | Q3 2016 | |||||||||||||||
Total loans 90 days past due and still accruing | $ | 76 | $ | 424 | $ | — | $ | (348 | ) | $ | 76 | |||||||||
Total loans 30-89 days past due | $ | 10,459 | $ | 7,477 | $ | 6,707 | $ | 2,982 | $ | 3,752 | ||||||||||
Allowance for loan losses | $ | 42,001 | $ | 38,359 | $ | 40,655 | $ | 3,642 | $ | 1,346 | ||||||||||
Total performing TDRs | $ | 31,351 | $ | 29,114 | $ | 28,345 | $ | 2,237 | $ | 3,006 | ||||||||||
Nonperforming loans to period end loans | 0.23 | % | 0.19 | % | 0.20 | % | 0.04 | 0.03 | ||||||||||||
Nonperforming assets to period end assets | 0.47 | % | 0.68 | % | 0.44 | % | (0.21 | ) | 0.03 | |||||||||||
Allowance for loan losses to period end loans | 0.72 | % | 0.85 | % | 0.72 | % | (0.13 | ) | — | |||||||||||
Allowance for loan losses (originated) to originated period end loans | 0.87 | % | 0.94 | % | 0.91 | % | (0.07 | ) | (0.04 | ) | ||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.03 | % | (0.01 | )% | 0.05 | % | 0.04 | (0.02 | ) | |||||||||||
Ratio of allowance for loan losses to nonperforming loans | 3.21x | 4.42x | 3.59x | (1.21 | )x | (.38 | )x |
Continued strength in credit quality contributed to the Bank's financial results as net charge-offs remained low at $0.49 million in the fourth quarter of 2016 compared to net recoveries of $0.16 million in the fourth quarter of 2015 and net charge-offs of $0.65 million in the linked quarter. Total nonperforming assets were $37.60 million, or 0.47%, of Bank assets at December 31, 2016, as compared to $43.09 million, or 0.68%, at December 31, 2015, and $34.22 million, or 0.44%, at September 30, 2016. The allowance for loan losses was $42.00 million, increased from $38.36 million at December 31, 2015 and $40.66 million at September 30, 2016.
About TowneBank:
As one of the top community banks in Virginia and North Carolina, TowneBank operates 37 banking offices serving Chesapeake, Chesterfield County, Glen Allen, Hampton, James City County, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach, Williamsburg, and York County in Virginia, along with Moyock, Grandy, Camden County, Southern Shores, Corolla and Nags Head in North Carolina. Towne also offers a full range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Beach Properties of Hilton Head. Local decision-making is a hallmark of its hometown banking strategy that is delivered through the leadership of each group’s President and Board of Directors. With total assets of $7.97 billion as of December 31, 2016, TowneBank is one of the largest banks headquartered in Virginia.
Non-GAAP Financial Measures:
This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.
Forward-Looking Statements:
Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions TowneBank intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. TowneBank’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material effect on the operations and future prospects of TowneBank include, but are not limited to changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in TowneBank’s market areas; TowneBank’s implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; and changes in accounting principles, policies and guidelines; and other risk factors detailed from time to time in filings made by TowneBank with the Federal Deposit Insurance Corporation. TowneBank undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.###
TOWNEBANK | |||||||||||||||
Selected Financial Highlights (unaudited) | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Increase/ | % Increase/ | ||||||||||||||
Three Months Ended December 31, | 2016 | 2015 | (Decrease) | (Decrease) | |||||||||||
Results of Operations: | |||||||||||||||
Net interest income | $ | 62,151 | $ | 46,331 | $ | 15,820 | 34.15 | % | |||||||
Noninterest income (1) | 39,512 | 25,079 | 14,433 | 57.55 | % | ||||||||||
Gain on investment securities | 6 | — | 6 | N/M | |||||||||||
Total Revenue | 101,669 | 71,410 | 30,259 | 42.37 | % | ||||||||||
Acquisition-related expenses | (707 | ) | 285 | (992 | ) | (348.07 | )% | ||||||||
Noninterest expenses, excluding acquisition-related expenses | 73,541 | 52,458 | 21,083 | 40.19 | % | ||||||||||
Provision for loan losses | 1,831 | 852 | 979 | 114.91 | % | ||||||||||
Income before income tax and noncontrolling interest | 27,004 | 17,815 | 9,189 | 51.58 | % | ||||||||||
Provision for income tax expense | 7,160 | 4,846 | 2,314 | 47.75 | % | ||||||||||
Net income | 19,844 | 12,969 | 6,875 | 53.01 | % | ||||||||||
Net income attributable to noncontrolling interest | (848 | ) | (503 | ) | (345 | ) | 68.59 | % | |||||||
Net income attributable to TowneBank | 18,996 | 12,466 | 6,530 | 52.38 | % | ||||||||||
Net income available to common shareholders | 18,996 | 12,466 | 6,530 | 52.38 | % | ||||||||||
Net income per common share - basic | 0.31 | 0.24 | 0.07 | 29.17 | % | ||||||||||
Net income per common share - diluted | 0.31 | 0.24 | 0.07 | 29.17 | % | ||||||||||
Period End Data: | |||||||||||||||
Total assets | $ | 7,973,915 | $ | 6,296,574 | $ | 1,677,341 | 26.64 | % | |||||||
Total assets - tangible | 7,671,149 | 6,115,579 | 1,555,570 | 25.44 | % | ||||||||||
Earning assets (2) | 7,346,961 | 5,827,888 | 1,519,073 | 26.07 | % | ||||||||||
Loans (net of unearned income) | 5,807,221 | 4,519,393 | 1,287,828 | 28.50 | % | ||||||||||
Allowance for loan losses | 42,001 | 38,359 | 3,642 | 9.49 | % | ||||||||||
Goodwill and other intangibles | 302,766 | 180,995 | 121,771 | 67.28 | % | ||||||||||
Nonperforming assets | 37,605 | 43,091 | (5,486 | ) | (12.73 | )% | |||||||||
Noninterest bearing deposits | 1,947,312 | 1,393,264 | 554,048 | 39.77 | % | ||||||||||
Interest bearing deposits | 4,087,885 | 3,520,763 | 567,122 | 16.11 | % | ||||||||||
Total deposits | 6,035,197 | 4,914,027 | 1,121,170 | 22.82 | % | ||||||||||
Total equity | 1,086,558 | 820,194 | 266,364 | 32.48 | % | ||||||||||
Total equity - tangible | 783,792 | 639,199 | 144,593 | 22.62 | % | ||||||||||
Common equity | 1,075,102 | 810,921 | 264,181 | 32.58 | % | ||||||||||
Common equity - tangible | 772,337 | 629,925 | 142,412 | 22.61 | % | ||||||||||
Book value per common share | 17.20 | 15.71 | 1.49 | 9.48 | % | ||||||||||
Book value per common share - tangible | 12.36 | 12.21 | 0.15 | 1.23 | % | ||||||||||
Daily Average Balances: | |||||||||||||||
Total assets | $ | 7,965,438 | $ | 6,305,571 | $ | 1,659,867 | 26.32 | % | |||||||
Total assets - tangible | 7,661,845 | 6,120,799 | 1,541,046 | 25.18 | % | ||||||||||
Earning assets (2) | 7,297,299 | 5,800,907 | 1,496,392 | 25.80 | % | ||||||||||
Loans (net of unearned income), excluding nonaccrual loans | 5,705,832 | 4,426,387 | 1,279,445 | 28.90 | % | ||||||||||
Allowance for loan losses | 41,188 | 37,918 | 3,270 | 8.62 | % | ||||||||||
Goodwill and other intangibles | 303,593 | 184,773 | 118,820 | 64.31 | % | ||||||||||
Noninterest bearing deposits | 1,961,902 | 1,420,047 | 541,855 | 38.16 | % | ||||||||||
Interest bearing deposits | 4,137,806 | 3,458,597 | 679,209 | 19.64 | % | ||||||||||
Total deposits | 6,099,708 | 4,878,643 | 1,221,065 | 25.03 | % | ||||||||||
Total equity | 1,087,382 | 823,627 | 263,755 | 32.02 | % | ||||||||||
Total equity - tangible | 783,789 | 638,855 | 144,934 | 22.69 | % | ||||||||||
Common equity | 1,076,277 | 814,894 | 261,383 | 32.08 | % | ||||||||||
Common equity - tangible | 772,683 | 630,121 | 142,562 | 22.62 | % | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 0.95 | % | 0.78 | % | 0.17 | % | 21.79 | % | |||||||
Return on average assets - tangible | 1.05 | % | 0.85 | % | 0.20 | % | 23.53 | % | |||||||
Return on average equity | 6.95 | % | 6.00 | % | 0.95 | % | 15.83 | % | |||||||
Return on average equity - tangible | 10.27 | % | 8.11 | % | 2.16 | % | 26.63 | % | |||||||
Return on average common equity | 7.02 | % | 6.07 | % | 0.95 | % | 15.65 | % | |||||||
Return on average common equity - tangible | 10.42 | % | 8.22 | % | 2.20 | % | 26.76 | % | |||||||
Net interest margin-fully tax equivalent (2)(3) | 3.64 | % | 3.36 | % | 0.28 | % | 8.33 | % | |||||||
Net interest margin (2) | 3.52 | % | 3.27 | % | 0.25 | % | 7.65 | % | |||||||
Average earning assets/total average assets | 91.61 | % | 92.07 | % | (0.46 | )% | (0.50 | )% | |||||||
Average loans/average deposits | 93.54 | % | 90.73 | % | 2.81 | % | 3.10 | % | |||||||
Average noninterest deposits/total average deposits | 32.16 | % | 29.11 | % | 3.05 | % | 10.48 | % | |||||||
Allowance for loan losses/period end loans | 0.72 | % | 0.85 | % | (0.13 | )% | (15.29 | )% | |||||||
Nonperforming assets to period end assets | 0.47 | % | 0.68 | % | (0.21 | )% | (30.88 | )% | |||||||
Period end equity/period end total assets | 13.63 | % | 13.03 | % | 0.60 | % | 4.60 | % | |||||||
Efficiency ratio (1) | 71.64 | % | 73.86 | % | (2.22 | )% | (3.01 | )% | |||||||
(1) Excludes gain on investment securities | |||||||||||||||
(2) Includes bank-owned life insurance | |||||||||||||||
(3) Presented on a tax-equivalent basis |
TOWNEBANK | |||||||||||||||
Selected Financial Highlights (unaudited) | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Increase/ | % Increase/ | ||||||||||||||
Twelve Months Ended December 31, | 2016 | 2015 | (Decrease) | (Decrease) | |||||||||||
Results of Operations: | |||||||||||||||
Net interest income | $ | 218,876 | $ | 180,442 | $ | 38,434 | 21.30 | % | |||||||
Noninterest income (1) | 155,216 | 116,379 | 38,837 | 33.37 | % | ||||||||||
Gain on investment securities | 6 | 904 | (898 | ) | (99.34 | )% | |||||||||
Total Revenue | 374,098 | 297,725 | 76,373 | 25.65 | % | ||||||||||
Acquisition-related expenses | 19,111 | 1,312 | 17,799 | 1,356.63 | % | ||||||||||
Noninterest expenses, excluding acquisition-related expenses | 248,717 | 200,845 | 47,872 | 23.84 | % | ||||||||||
Provision for loan losses | 5,357 | 3,027 | 2,330 | 76.97 | % | ||||||||||
Income before income tax and noncontrolling interest | 100,913 | 92,541 | 8,372 | 9.05 | % | ||||||||||
Provision for income tax expense | 28,698 | 26,876 | 1,822 | 6.78 | % | ||||||||||
Net income | 72,215 | 65,665 | 6,550 | 9.97 | % | ||||||||||
Net income attributable to noncontrolling interest | (4,965 | ) | (3,283 | ) | (1,682 | ) | 51.23 | % | |||||||
Net income attributable to TowneBank | 67,250 | 62,382 | 4,868 | 7.80 | % | ||||||||||
Preferred stock dividends | — | 13 | (13 | ) | (100.00 | )% | |||||||||
Net income available to common shareholders | 67,250 | 62,369 | 4,881 | 7.83 | % | ||||||||||
Net income per common share - basic | 1.18 | 1.22 | (0.04 | ) | (3.28 | )% | |||||||||
Net income per common share - diluted | 1.18 | 1.22 | (0.04 | ) | (3.28 | )% | |||||||||
Period End Data: | |||||||||||||||
Total assets | $ | 7,973,915 | $ | 6,296,574 | $ | 1,677,341 | 26.64 | % | |||||||
Total assets - tangible | 7,671,149 | 6,115,579 | 1,555,570 | 25.44 | % | ||||||||||
Earning assets (2) | 7,346,961 | 5,827,888 | 1,519,073 | 26.07 | % | ||||||||||
Loans (net of unearned income) | 5,807,221 | 4,519,393 | 1,287,828 | 28.50 | % | ||||||||||
Allowance for loan losses | 42,001 | 38,359 | 3,642 | 9.49 | % | ||||||||||
Goodwill and other intangibles | 302,766 | 180,995 | 121,771 | 67.28 | % | ||||||||||
Nonperforming assets | 37,605 | 43,091 | (5,486 | ) | (12.73 | )% | |||||||||
Noninterest bearing deposits | 1,947,312 | 1,393,264 | 554,048 | 39.77 | % | ||||||||||
Interest bearing deposits | 4,087,885 | 3,520,763 | 567,122 | 16.11 | % | ||||||||||
Total deposits | 6,035,197 | 4,914,027 | 1,121,170 | 22.82 | % | ||||||||||
Total equity | 1,086,558 | 820,194 | 266,364 | 32.48 | % | ||||||||||
Total equity - tangible | 783,792 | 639,199 | 144,593 | 22.62 | % | ||||||||||
Common equity | 1,075,102 | 810,921 | 264,181 | 32.58 | % | ||||||||||
Common equity - tangible | 772,337 | 629,925 | 142,412 | 22.61 | % | ||||||||||
Book value per common share | 17.20 | 15.71 | 1.49 | 9.48 | % | ||||||||||
Book value per common share - tangible | 12.36 | 12.21 | 0.15 | 1.23 | % | ||||||||||
Daily Average Balances: | |||||||||||||||
Total assets | $ | 7,205,236 | $ | 6,039,418 | $ | 1,165,818 | 19.30 | % | |||||||
Total assets - tangible | 6,958,267 | 5,858,762 | 1,099,505 | 18.77 | % | ||||||||||
Earning assets (2) | 6,603,377 | 5,528,362 | 1,075,015 | 19.45 | % | ||||||||||
Loans (net of unearned income), excluding nonaccrual loans | 5,129,990 | 4,239,887 | 890,103 | 20.99 | % | ||||||||||
Allowance for loan losses | 39,547 | 37,194 | 2,353 | 6.33 | % | ||||||||||
Goodwill and other intangibles | 246,968 | 180,656 | 66,312 | 36.71 | % | ||||||||||
Noninterest bearing deposits | 1,720,093 | 1,343,360 | 376,733 | 28.04 | % | ||||||||||
Interest bearing deposits | 3,852,099 | 3,324,533 | 527,566 | 15.87 | % | ||||||||||
Total deposits | 5,572,192 | 4,667,893 | 904,299 | 19.37 | % | ||||||||||
Total equity | 963,775 | 804,744 | 159,031 | 19.76 | % | ||||||||||
Total equity - tangible | 716,807 | 624,088 | 92,719 | 14.86 | % | ||||||||||
Common equity | 953,669 | 794,874 | 158,795 | 19.98 | % | ||||||||||
Common equity - tangible | 706,701 | 614,218 | 92,483 | 15.06 | % | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 0.93 | % | 1.03 | % | (0.10 | )% | (9.71 | )% | |||||||
Return on average assets - tangible | 1.02 | % | 1.10 | % | (0.08 | )% | (7.27 | )% | |||||||
Return on average equity | 6.98 | % | 7.75 | % | (0.77 | )% | (9.94 | )% | |||||||
Return on average equity - tangible | 9.93 | % | 10.34 | % | (0.41 | )% | (3.97 | )% | |||||||
Return on average common equity | 7.05 | % | 7.85 | % | (0.80 | )% | (10.19 | )% | |||||||
Return on average common equity - tangible | 10.07 | % | 10.51 | % | (0.44 | )% | (4.19 | )% | |||||||
Net interest margin-fully tax equivalent (2)(3) | 3.50 | % | 3.45 | % | 0.05 | % | 1.45 | % | |||||||
Net interest margin (2) | 3.41 | % | 3.36 | % | 0.05 | % | 1.49 | % | |||||||
Average earning assets/total average assets | 91.65 | % | 91.54 | % | 0.11 | % | 0.12 | % | |||||||
Average loans/average deposits | 92.06 | % | 90.83 | % | 1.23 | % | 1.35 | % | |||||||
Average noninterest deposits/total average deposits | 30.87 | % | 28.78 | % | 2.09 | % | 7.26 | % | |||||||
Allowance for loan losses/period end loans | 0.72 | % | 0.85 | % | (0.13 | )% | (15.29 | )% | |||||||
Nonperforming assets to period end assets | 0.47 | % | 0.68 | % | (0.21 | )% | (30.88 | )% | |||||||
Period end equity/period end total assets | 13.63 | % | 13.03 | % | 0.60 | % | 4.60 | % | |||||||
Efficiency ratio (1) | 71.59 | % | 68.11 | % | 3.48 | % | 5.11 | % | |||||||
(1) Excludes gain on investment securities | |||||||||||||||
(2) Includes bank-owned life insurance | |||||||||||||||
(3) Presented on a tax-equivalent basis |
TOWNEBANK | |||||||||||||||
Selected Financial Highlights (unaudited) | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
December 31, | September 30, | Increase/ | % Increase/ | ||||||||||||
Three Months Ended | 2016 | 2016 | (Decrease) | (Decrease) | |||||||||||
Results of Operations: | |||||||||||||||
Net interest income | $ | 62,151 | $ | 62,605 | $ | (454 | ) | (0.73 | )% | ||||||
Noninterest income (1) | 39,512 | 46,821 | (7,309 | ) | (15.61 | )% | |||||||||
Gain on investment securities | 6 | — | 6 | N/M | |||||||||||
Total Revenue | 101,669 | 109,426 | (7,757 | ) | (7.09 | )% | |||||||||
Acquisition-related expenses | (707 | ) | 969 | (1,676 | ) | (172.96 | )% | ||||||||
Noninterest expenses, excluding acquisition-related expenses | 73,541 | 69,964 | 3,577 | 5.11 | % | ||||||||||
Provision for loan losses | 1,831 | 1,686 | 145 | 8.60 | % | ||||||||||
Income before income tax and noncontrolling interest | 27,004 | 36,807 | (9,803 | ) | (26.63 | )% | |||||||||
Provision for income tax expense | 7,160 | 10,974 | (3,814 | ) | (34.75 | )% | |||||||||
Net income | 19,844 | 25,833 | (5,989 | ) | (23.18 | )% | |||||||||
Net income attributable to noncontrolling interest | (848 | ) | (1,657 | ) | 809 | (48.82 | )% | ||||||||
Net income attributable to TowneBank | 18,996 | 24,176 | (5,180 | ) | (21.43 | )% | |||||||||
Net income available to common shareholders | 18,996 | 24,176 | (5,180 | ) | (21.43 | )% | |||||||||
Net income per common share - basic | 0.31 | 0.39 | (0.08 | ) | (20.51 | )% | |||||||||
Net income per common share - diluted | 0.31 | 0.39 | (0.08 | ) | (20.51 | )% | |||||||||
Period End Data: | |||||||||||||||
Total assets | $ | 7,973,915 | $ | 7,830,142 | $ | 143,773 | 1.84 | % | |||||||
Total assets - tangible | 7,671,149 | 7,525,817 | 145,332 | 1.93 | % | ||||||||||
Earning assets (2) | 7,346,961 | 7,197,077 | 149,884 | 2.08 | % | ||||||||||
Loans (net of unearned income) | 5,807,221 | 5,651,642 | 155,579 | 2.75 | % | ||||||||||
Allowance for loan losses | 42,001 | 40,655 | 1,346 | 3.31 | % | ||||||||||
Goodwill and other intangibles | 302,766 | 304,325 | (1,559 | ) | (0.51 | )% | |||||||||
Nonperforming assets | 37,605 | 34,221 | 3,384 | 9.89 | % | ||||||||||
Noninterest bearing deposits | 1,947,312 | 1,974,395 | (27,083 | ) | (1.37 | )% | |||||||||
Interest bearing deposits | 4,087,885 | 4,172,552 | (84,667 | ) | (2.03 | )% | |||||||||
Total deposits | 6,035,197 | 6,146,947 | (111,750 | ) | (1.82 | )% | |||||||||
Total equity | 1,086,558 | 1,078,878 | 7,680 | 0.71 | % | ||||||||||
Total equity - tangible | 783,792 | 774,553 | 9,239 | 1.19 | % | ||||||||||
Common equity | 1,075,102 | 1,067,193 | 7,909 | 0.74 | % | ||||||||||
Common equity - tangible | 772,337 | 762,868 | 9,469 | 1.24 | % | ||||||||||
Book value per common share | 17.20 | 17.11 | 0.09 | 0.53 | % | ||||||||||
Book value per common share - tangible | 12.36 | 12.23 | 0.13 | 1.06 | % | ||||||||||
Daily Average Balances: | |||||||||||||||
Total assets | $ | 7,965,438 | $ | 7,991,213 | $ | (25,775 | ) | (0.32 | )% | ||||||
Total assets - tangible | 7,661,845 | 7,689,122 | (27,277 | ) | (0.35 | )% | |||||||||
Earning assets (2) | 7,297,299 | 7,255,956 | 41,343 | 0.57 | % | ||||||||||
Loans (net of unearned income), excluding nonaccrual loans | 5,705,832 | 5,583,711 | 122,121 | 2.19 | % | ||||||||||
Allowance for loan losses | 41,188 | 40,004 | 1,184 | 2.96 | % | ||||||||||
Goodwill and other intangibles | 303,593 | 302,091 | 1,502 | 0.50 | % | ||||||||||
Noninterest bearing deposits | 1,961,902 | 1,959,025 | 2,877 | 0.15 | % | ||||||||||
Interest bearing deposits | 4,137,806 | 4,219,316 | (81,510 | ) | (1.93 | )% | |||||||||
Total deposits | 6,099,707 | 6,178,341 | (78,634 | ) | (1.27 | )% | |||||||||
Total equity | 1,087,382 | 1,075,023 | 12,359 | 1.15 | % | ||||||||||
Total equity - tangible | 783,789 | 772,932 | 10,857 | 1.40 | % | ||||||||||
Common equity | 1,076,277 | 1,064,179 | 12,098 | 1.14 | % | ||||||||||
Common equity - tangible | 772,683 | 762,088 | 10,595 | 1.39 | % | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 0.95 | % | 1.20 | % | (0.25 | )% | (20.83 | )% | |||||||
Return on average assets - tangible | 1.05 | % | 1.29 | % | (0.24 | )% | (18.60 | )% | |||||||
Return on average equity | 6.95 | % | 8.95 | % | (2.00 | )% | (22.35 | )% | |||||||
Return on average equity - tangible | 10.27 | % | 12.87 | % | (2.60 | )% | (20.20 | )% | |||||||
Return on average common equity | 7.02 | % | 9.04 | % | (2.02 | )% | (22.35 | )% | |||||||
Return on average common equity - tangible | 10.42 | % | 13.05 | % | (2.63 | )% | (20.15 | )% | |||||||
Net interest margin-fully tax equivalent (2)(3) | 3.64 | % | 3.57 | % | 0.07 | % | 1.96 | % | |||||||
Net interest margin (2) | 3.52 | % | 3.50 | % | 0.02 | % | 0.57 | % | |||||||
Average earning assets/total average assets | 91.61 | % | 90.80 | % | 0.81 | % | 0.89 | % | |||||||
Average loans/average deposits | 93.54 | % | 90.38 | % | 3.16 | % | 3.50 | % | |||||||
Average noninterest deposits/total average deposits | 32.16 | % | 31.71 | % | 0.45 | % | 1.42 | % | |||||||
Allowance for loan losses/period end loans | 0.72 | % | 0.72 | % | — | % | — | % | |||||||
Nonperforming assets to period end assets | 0.47 | % | 0.44 | % | 0.03 | % | 6.82 | % | |||||||
Period end equity/period end total assets | 13.63 | % | 13.78 | % | (0.15 | )% | (1.09 | )% | |||||||
Efficiency ratio (1) | 71.64 | % | 64.82 | % | 6.82 | % | 10.52 | % | |||||||
(1) Excludes gain on investment securities | |||||||||||||||
(2) Includes bank-owned life insurance | |||||||||||||||
(3) Presented on a tax-equivalent basis |
TOWNEBANK | ||||||||||||||||||||||||||
Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Loans (net of unearned income and deferred costs), excluding nonaccrual loans | $ | 5,705,832 | $ | 66,061 | 4.61 | % | $ | 5,583,711 | $ | 65,245 | 4.65 | % | $ | 4,426,387 | $ | 50,850 | 4.56 | % | ||||||||
Taxable investment securities | 666,936 | 2,762 | 1.66 | % | 687,480 | 2,703 | 1.57 | % | 782,998 | 2,987 | 1.53 | % | ||||||||||||||
Tax-exempt investment securities | 52,199 | 390 | 2.99 | % | 53,180 | 396 | 2.98 | % | 54,974 | 428 | 3.11 | % | ||||||||||||||
Interest-bearing deposits | 352,418 | 487 | 0.55 | % | 287,672 | (36 | ) | (0.05 | )% | 292,085 | 211 | 0.29 | % | |||||||||||||
Loans held for sale | 353,308 | 3,028 | 3.43 | % | 481,358 | 4,137 | 3.44 | % | 95,932 | 865 | 3.61 | % | ||||||||||||||
Bank-owned life insurance | 166,606 | 3,656 | 8.73 | % | 162,555 | 1,945 | 4.76 | % | 148,531 | 2,311 | 6.17 | % | ||||||||||||||
Total earning assets | 7,297,299 | 76,384 | 4.16 | % | 7,255,956 | 74,390 | 4.08 | % | 5,800,907 | 57,652 | 3.94 | % | ||||||||||||||
Less: allowance for loan losses | (41,188 | ) | (40,004 | ) | (37,918 | ) | ||||||||||||||||||||
Total nonearning assets | 709,327 | 775,261 | 542,582 | |||||||||||||||||||||||
Total assets | $ | 7,965,438 | $ | 7,991,213 | $ | 6,305,571 | ||||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||
Demand and money market | $ | 2,230,198 | $ | 1,742 | 0.31 | % | $ | 2,216,987 | $ | 1,674 | 0.30 | % | $ | 1,780,151 | $ | 1,265 | 0.28 | % | ||||||||
Savings | 316,211 | 728 | 0.92 | % | 318,193 | 723 | 0.90 | % | 299,503 | 684 | 0.91 | % | ||||||||||||||
Certificates of deposit | 1,591,397 | 3,458 | 0.86 | % | 1,684,136 | 3,512 | 0.83 | % | 1,378,943 | 3,170 | 0.91 | % | ||||||||||||||
Total interest-bearing deposits | 4,137,806 | 5,928 | 0.57 | % | 4,219,316 | 5,909 | 0.56 | % | 3,458,597 | 5,119 | 0.59 | % | ||||||||||||||
Borrowings | 628,272 | 3,739 | 2.33 | % | 512,027 | 3,309 | 2.53 | % | 471,929 | 3,360 | 2.79 | % | ||||||||||||||
Total interest-bearing liabilities | 4,766,078 | 9,667 | 0.81 | % | 4,731,343 | 9,218 | 0.78 | % | 3,930,526 | 8,479 | 0.86 | % | ||||||||||||||
Demand deposits | 1,961,902 | 1,959,025 | 1,420,047 | |||||||||||||||||||||||
Other noninterest-bearing liabilities | 150,076 | 225,822 | 131,371 | |||||||||||||||||||||||
Total liabilities | 6,878,056 | 6,916,190 | 5,481,944 | |||||||||||||||||||||||
Shareholders’ equity | 1,087,382 | 1,075,023 | 823,627 | |||||||||||||||||||||||
Total liabilities and equity | $ | 7,965,438 | $ | 7,991,213 | $ | 6,305,571 | ||||||||||||||||||||
Net interest income (tax-equivalent basis) | $ | 66,717 | $ | 65,172 | $ | 49,173 | ||||||||||||||||||||
Reconcilement of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Bank-owned life insurance | (3,656 | ) | (1,945 | ) | (2,311 | ) | ||||||||||||||||||||
Tax-equivalent basis adjustment | (910 | ) | (622 | ) | (531 | ) | ||||||||||||||||||||
Net interest income (GAAP) | $ | 62,151 | $ | 62,605 | $ | 46,331 | ||||||||||||||||||||
Interest rate spread (1) | 3.35 | % | 3.30 | % | 3.09 | % | ||||||||||||||||||||
Interest expense as a percent of average earning assets | 0.53 | % | 0.51 | % | 0.58 | % | ||||||||||||||||||||
Net interest margin (tax equivalent basis) (2) | 3.64 | % | 3.57 | % | 3.36 | % | ||||||||||||||||||||
Total cost of deposits | 0.39 | % | 0.38 | % | 0.42 | % | ||||||||||||||||||||
(1) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(2) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
TOWNEBANK | ||||||||||||||||||||||||||||||||
Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Loans (net of unearned income and deferred costs), excluding nonaccrual loans | $ | 5,129,990 | $ | 234,318 | 4.57 | % | $ | 4,239,887 | $ | 196,868 | 4.64 | % | $ | 3,450,730 | $ | 162,347 | 4.70 | % | ||||||||||||||
Taxable investment securities | 695,082 | 11,254 | 1.62 | % | 786,737 | 11,849 | 1.51 | % | 574,229 | 6,895 | 1.20 | % | ||||||||||||||||||||
Tax-exempt investment securities | 52,689 | 1,601 | 3.04 | % | 61,489 | 1,952 | 3.17 | % | 70,154 | 2,180 | 3.11 | % | ||||||||||||||||||||
Interest-bearing deposits | 300,130 | 1,145 | 0.38 | % | 188,546 | 499 | 0.26 | % | 253,416 | 637 | 0.25 | % | ||||||||||||||||||||
Mortgage loans held for sale | 267,721 | 9,152 | 3.42 | % | 106,149 | 3,836 | 3.61 | % | 65,746 | 2,586 | 3.93 | % | ||||||||||||||||||||
Bank-owned life insurance | 157,765 | 9,220 | 5.84 | % | 145,554 | 7,985 | 5.49 | % | 57,842 | 3,290 | 5.69 | % | ||||||||||||||||||||
Total earning assets | 6,603,377 | 266,690 | 4.04 | % | 5,528,362 | 222,989 | 4.03 | % | 4,472,117 | 177,935 | 3.98 | % | ||||||||||||||||||||
Less: allowance for loan losses | (39,547 | ) | (37,194 | ) | (37,168 | ) | ||||||||||||||||||||||||||
Total nonearning assets | 641,406 | 548,250 | 431,635 | |||||||||||||||||||||||||||||
Total assets | $ | 7,205,236 | $ | 6,039,418 | $ | 4,866,584 | ||||||||||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||
Demand and money market | $ | 2,012,061 | $ | 6,043 | 0.30 | % | $ | 1,689,185 | $ | 4,721 | 0.28 | % | $ | 1,306,738 | $ | 3,036 | 0.23 | % | ||||||||||||||
Savings | 309,049 | 2,859 | 0.93 | % | 300,620 | 2,755 | 0.92 | % | 310,722 | 2,855 | 0.92 | % | ||||||||||||||||||||
Certificates of deposit | 1,530,990 | 13,414 | 0.88 | % | 1,334,728 | 11,390 | 0.85 | % | 972,702 | 7,461 | 0.77 | % | ||||||||||||||||||||
Total interest-bearing deposits | 3,852,100 | 22,316 | 0.58 | % | 3,324,533 | 18,866 | 0.57 | % | 2,590,162 | 13,352 | 0.52 | % | ||||||||||||||||||||
FHLB advances and repurchase agreements | 523,366 | 13,424 | 2.56 | % | 463,153 | 13,565 | 2.93 | % | 429,249 | 13,424 | 3.13 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 4,375,466 | 35,740 | 0.82 | % | 3,787,686 | 32,431 | 0.86 | % | 3,019,411 | 26,776 | 0.89 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||||||
Demand deposits | 1,720,093 | 1,343,360 | 1,158,888 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 145,902 | 103,628 | 81,508 | |||||||||||||||||||||||||||||
Total liabilities | 6,241,461 | 5,234,674 | 4,259,807 | |||||||||||||||||||||||||||||
Shareholders' equity | 963,775 | 804,744 | 606,777 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 7,205,236 | $ | 6,039,418 | $ | 4,866,584 | ||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) | $ | 230,950 | $ | 190,558 | $ | 151,159 | ||||||||||||||||||||||||||
Reconcilement of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
Bank-owned life insurance | (9,220 | ) | (7,985 | ) | (3,290 | ) | ||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (2,854 | ) | (2,131 | ) | (2,133 | ) | ||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 218,876 | $ | 180,442 | $ | 145,736 | ||||||||||||||||||||||||||
Interest rate spread (1) | 3.22 | % | 3.17 | % | 3.09 | % | ||||||||||||||||||||||||||
Interest expense as a percent of average earning assets | 0.54 | % | 0.59 | % | 0.60 | % | ||||||||||||||||||||||||||
Net interest margin (tax-equivalent basis) (2) | 3.50 | % | 3.45 | % | 3.38 | % | ||||||||||||||||||||||||||
Total cost of deposits | 0.40 | % | 0.40 | % | 0.36 | % | ||||||||||||||||||||||||||
(1) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(2) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
TOWNEBANK | |||||||
Consolidated Balance Sheets | |||||||
(dollars in thousands, except share data) | |||||||
2016 | 2015 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 130,967 | $ | 250,836 | |||
Interest-bearing deposits in financial institutions | 5,581 | 1,001 | |||||
Total Cash and Cash Equivalents | 136,548 | 251,837 | |||||
Securities available for sale, at fair value | 812,974 | 723,489 | |||||
Securities held to maturity, at amortized cost | 66,490 | 69,045 | |||||
Federal Home Loan Bank stock, at amortized cost | 35,937 | 23,691 | |||||
Total Securities | 915,401 | 816,225 | |||||
Mortgage loans held for sale | 314,117 | 102,346 | |||||
Loans, net of unearned income and deferred costs: | 5,807,221 | 4,519,393 | |||||
Less: allowance for loan losses | (42,001 | ) | (38,359 | ) | |||
Net Loans | 5,765,220 | 4,481,034 | |||||
Premises and equipment, net | 198,568 | 173,695 | |||||
Goodwill | 264,910 | 154,842 | |||||
Other intangible assets, net | 37,856 | 26,153 | |||||
Bank-owned life insurance policies | 189,499 | 149,452 | |||||
Other assets | 151,796 | 140,990 | |||||
TOTAL ASSETS | $ | 7,973,915 | $ | 6,296,574 | |||
LIABILITIES AND EQUITY | |||||||
Deposits: | |||||||
Noninterest-bearing demand | $ | 1,947,312 | $ | 1,393,264 | |||
Interest-bearing: | |||||||
Demand and money market accounts | 2,263,894 | 1,824,226 | |||||
Savings | 319,611 | 300,408 | |||||
Certificates of deposit | 1,504,380 | 1,396,129 | |||||
Total Deposits | 6,035,197 | 4,914,027 | |||||
Advances from the Federal Home Loan Bank | 687,511 | 429,080 | |||||
Repurchase agreements and other borrowings | 31,747 | 37,434 | |||||
Total Borrowings | 719,258 | 466,514 | |||||
Other liabilities | 132,902 | 95,839 | |||||
TOTAL LIABILITIES | 6,887,357 | 5,476,380 | |||||
Preferred stock | |||||||
Authorized shares - 2,000,000 | |||||||
Issued and outstanding shares 0 and 76,458 in 2015 and 2014 | — | — | |||||
Common stock, $1.667 par value | |||||||
Authorized shares - 90,000,000 | |||||||
Issued and outstanding shares 62,492,168 in 2016 | |||||||
and 51,605,521 in 2015, respectively | 104,174 | 86,026 | |||||
Capital surplus | 745,411 | 535,094 | |||||
Retained earnings | 229,503 | 192,795 | |||||
Common stock issued to deferred compensation trust, at cost | |||||||
692,431 shares in 2016 and 648,350 shares in 2015 | (11,168 | ) | (10,172 | ) | |||
Deferred compensation trust | 11,168 | 10,172 | |||||
Accumulated other comprehensive income (loss) | (3,986 | ) | (2,994 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 1,075,102 | 810,921 | |||||
Noncontrolling interest | 11,456 | 9,273 | |||||
TOTAL EQUITY | 1,086,558 | 820,194 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 7,973,915 | $ | 6,296,574 |
TOWNEBANK | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Three Months Ended | Twelve months ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
INTEREST INCOME: | |||||||||||||||
Loans, including fees | $ | 65,151 | $ | 50,319 | $ | 231,464 | $ | 194,737 | |||||||
Investment securities | 3,152 | 3,415 | 12,855 | 13,801 | |||||||||||
Interest-bearing deposits in financial institutions and federal funds sold | 487 | 212 | 1,145 | 499 | |||||||||||
Mortgage loans held for sale | 3,028 | 865 | 9,152 | 3,836 | |||||||||||
Total interest income | 71,818 | 54,811 | 254,616 | 212,873 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 5,928 | 5,119 | 22,316 | 18,866 | |||||||||||
Advances from the Federal Home Loan Bank | 3,546 | 3,326 | 13,320 | 13,486 | |||||||||||
Repurchase agreements and other borrowings, net of capitalized interest | 193 | 35 | 104 | 79 | |||||||||||
Total interest expense | 9,667 | 8,480 | 35,740 | 32,431 | |||||||||||
Net interest income | 62,151 | 46,331 | 218,876 | 180,442 | |||||||||||
PROVISION FOR LOAN LOSSES | 1,831 | 852 | 5,357 | 3,027 | |||||||||||
Net interest income after provision for loan losses | 60,320 | 45,479 | 213,519 | 177,415 | |||||||||||
NONINTEREST INCOME: | |||||||||||||||
Residential mortgage banking income, net | 18,096 | 7,255 | 58,792 | 34,211 | |||||||||||
Insurance commissions and other title fees and income, net | 9,823 | 8,997 | 46,741 | 39,641 | |||||||||||
Real estate brokerage and property management income, net | 2,925 | 2,438 | 20,515 | 16,326 | |||||||||||
Service charges on deposit accounts | 2,535 | 2,254 | 9,547 | 9,165 | |||||||||||
Credit card merchant fees, net | 1,135 | 767 | 4,508 | 2,588 | |||||||||||
Other income | 4,998 | 3,368 | 15,113 | 14,448 | |||||||||||
Gain on investment securities | 6 | — | 6 | 904 | |||||||||||
Total noninterest income | 39,518 | 25,079 | 155,222 | 117,283 | |||||||||||
NONINTEREST EXPENSE: | |||||||||||||||
Salaries and employee benefits | 43,071 | 30,826 | 143,847 | 113,959 | |||||||||||
Occupancy | 6,885 | 5,156 | 23,717 | 19,645 | |||||||||||
Furniture and equipment | 3,378 | 2,390 | 11,315 | 9,339 | |||||||||||
Other expenses | 19,500 | 14,371 | 88,949 | 59,214 | |||||||||||
Total noninterest expense | 72,834 | 52,743 | 267,828 | 202,157 | |||||||||||
Income before income tax expense & noncontrolling interest | 27,004 | 17,815 | 100,913 | 92,541 | |||||||||||
Provision for income tax expense | 7,160 | 4,846 | 28,698 | 26,876 | |||||||||||
Net income | $ | 19,844 | $ | 12,969 | $ | 72,215 | $ | 65,665 | |||||||
Net income attributable to noncontrolling interest | (848 | ) | (503 | ) | (4,965 | ) | (3,283 | ) | |||||||
Net income attributable to TowneBank | $ | 18,996 | $ | 12,466 | $ | 67,250 | $ | 62,382 | |||||||
Preferred stock dividends and accretion | — | — | — | 13 | |||||||||||
Net income available to common shareholders | $ | 18,996 | $ | 12,466 | $ | 67,250 | $ | 62,369 | |||||||
Per common share information | |||||||||||||||
Basic earnings | $ | 0.31 | $ | 0.24 | $ | 1.18 | $ | 1.22 | |||||||
Diluted earnings | $ | 0.31 | $ | 0.24 | $ | 1.18 | $ | 1.22 | |||||||
Cash dividends declared | $ | 0.13 | $ | 0.12 | $ | 0.51 | $ | 0.47 |
TOWNEBANK | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Three Months Ended | Twelve months ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
Net income | $ | 19,843 | $ | 12,970 | $ | 72,215 | $ | 65,665 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized losses on securities | |||||||||||||||
Unrealized holding losses arising during the period | (8,294 | ) | (5,567 | ) | (2,000 | ) | (4,031 | ) | |||||||
Deferred tax benefit | 2,903 | 1,949 | 700 | 1,411 | |||||||||||
Realized gains reclassified into earnings | (6 | ) | — | (6 | ) | (785 | ) | ||||||||
Deferred tax benefit | 2 | — | 2 | 275 | |||||||||||
Net unrealized losses | (5,395 | ) | (3,618 | ) | (1,304 | ) | (3,130 | ) | |||||||
Pension and postretirement benefit plans | |||||||||||||||
Prior service costs | — | — | — | (1,405 | ) | ||||||||||
Deferred tax benefit | — | — | — | 492 | |||||||||||
Actuarial gain (losses) | — | (711 | ) | 109 | 694 | ||||||||||
Deferred tax benefit (expense) | — | 249 | (38 | ) | (243 | ) | |||||||||
Amortization of prior service costs | 110 | — | 373 | — | |||||||||||
Deferred tax expense | (39 | ) | — | (130 | ) | — | |||||||||
Amortization of net actuarial (gain) loss | (2 | ) | 77 | (4 | ) | 215 | |||||||||
Deferred tax benefit (expense) | 1 | (27 | ) | 2 | (75 | ) | |||||||||
Change in retirement plans, net of tax | 70 | (412 | ) | 312 | (322 | ) | |||||||||
Other comprehensive loss, net of tax | (5,325 | ) | (4,030 | ) | (992 | ) | (3,452 | ) | |||||||
Comprehensive income | $ | 14,518 | $ | 8,940 | $ | 71,223 | $ | 62,213 |
TOWNEBANK | |||||||||||||||||||
Consolidated Balance Sheets - Five Quarter Trend | |||||||||||||||||||
(dollars in thousands, except share data) | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 130,967 | $ | 147,887 | $ | 188,183 | $ | 195,161 | $ | 250,836 | |||||||||
Interest-bearing deposits in financial institutions | 5,581 | 6,891 | 33,777 | 1,006 | 1,001 | ||||||||||||||
Federal funds sold | — | — | 14 | — | — | ||||||||||||||
Total Cash and Cash Equivalents | 136,548 | 154,778 | 221,974 | 196,167 | 251,837 | ||||||||||||||
Securities available for sale, at fair value | 812,974 | 704,418 | 812,375 | 821,551 | 723,489 | ||||||||||||||
Securities held to maturity, at amortized cost | 66,490 | 70,304 | 65,728 | 66,921 | 69,045 | ||||||||||||||
Federal Home Loan Bank stock, at amortized cost | 35,937 | 24,888 | 28,008 | 23,903 | 23,691 | ||||||||||||||
Total Securities | 915,401 | 799,610 | 906,111 | 912,375 | 816,225 | ||||||||||||||
Mortgage loans held for sale | 314,117 | 439,608 | 474,978 | 97,491 | 102,346 | ||||||||||||||
Loans, net of unearned income and deferred costs: | 5,807,221 | 5,651,642 | 5,559,949 | 4,552,260 | 4,519,393 | ||||||||||||||
Less: allowance for loan losses | (42,001 | ) | (40,655 | ) | (39,618 | ) | (37,760 | ) | (38,359 | ) | |||||||||
Net Loans | 5,765,220 | 5,610,987 | 5,520,331 | 4,514,500 | 4,481,034 | ||||||||||||||
Premises and equipment, net | 198,568 | 202,955 | 202,333 | 178,154 | 173,695 | ||||||||||||||
Goodwill | 264,910 | 264,578 | 257,485 | 157,659 | 154,842 | ||||||||||||||
Other intangible assets, net | 37,856 | 39,747 | 41,515 | 29,286 | 26,153 | ||||||||||||||
Bank-owned life insurance policies | 189,499 | 163,385 | 164,933 | 150,623 | 149,452 | ||||||||||||||
Other assets | 151,796 | 154,494 | 151,081 | 128,914 | 140,990 | ||||||||||||||
TOTAL ASSETS | $ | 7,973,915 | $ | 7,830,142 | $ | 7,940,741 | $ | 6,365,169 | $ | 6,296,574 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 1,947,312 | $ | 1,974,395 | $ | 1,950,816 | $ | 1,449,660 | $ | 1,393,264 | |||||||||
Interest-bearing: | |||||||||||||||||||
Demand and money market accounts | 2,263,894 | 2,207,962 | 2,174,154 | 1,769,414 | 1,824,226 | ||||||||||||||
Savings | 319,611 | 315,477 | 317,071 | 302,373 | 300,408 | ||||||||||||||
Certificates of deposit | 1,504,380 | 1,649,113 | 1,744,238 | 1,433,679 | 1,396,129 | ||||||||||||||
Total Deposits | 6,035,197 | 6,146,947 | 6,186,279 | 4,955,126 | 4,914,027 | ||||||||||||||
Advances from the Federal Home Loan Bank | 687,511 | 427,655 | 500,798 | 428,940 | 429,080 | ||||||||||||||
Repurchase agreements and other borrowings | 31,747 | 31,927 | 44,008 | 39,442 | 37,434 | ||||||||||||||
Total Borrowings | 719,258 | 459,582 | 544,806 | 468,382 | 466,514 | ||||||||||||||
Other liabilities | 132,902 | 144,735 | 148,108 | 105,658 | 95,839 | ||||||||||||||
TOTAL LIABILITIES | 6,887,357 | 6,751,264 | 6,879,193 | 5,529,166 | 5,476,380 | ||||||||||||||
Preferred stock | |||||||||||||||||||
Authorized shares - 2,000,000 | — | — | — | — | — | ||||||||||||||
Common stock, $1.667 par value | 104,174 | 104,000 | 103,963 | 86,151 | 86,026 | ||||||||||||||
Capital surplus | 745,411 | 743,223 | 742,228 | 536,294 | 535,094 | ||||||||||||||
Retained earnings | 229,503 | 218,631 | 202,565 | 204,413 | 192,795 | ||||||||||||||
Common stock issued to deferred compensation trust, at cost | (11,168 | ) | (10,969 | ) | (10,785 | ) | (10,288 | ) | (10,172 | ) | |||||||||
Deferred compensation trust | 11,168 | 10,969 | 10,785 | 10,288 | 10,172 | ||||||||||||||
Accumulated other comprehensive income (loss) | (3,986 | ) | 1,339 | 1,604 | 17 | (2,994 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,075,102 | 1,067,193 | 1,050,360 | 826,875 | 810,921 | ||||||||||||||
Noncontrolling interest | 11,456 | 11,685 | 11,188 | 9,128 | 9,273 | ||||||||||||||
TOTAL EQUITY | 1,086,558 | 1,078,878 | 1,061,548 | 836,003 | 820,194 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,973,915 | $ | 7,830,142 | $ | 7,940,741 | $ | 6,365,169 | $ | 6,296,574 |
TOWNEBANK | |||||||||||||||||||
Consolidated Statements of Income - Five Quarter Trend (unaudited) | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Loans, including fees | $ | 65,151 | $ | 64,623 | $ | 51,444 | $ | 50,247 | $ | 50,319 | |||||||||
Investment securities | 3,152 | 3,099 | 3,139 | 3,464 | 3,415 | ||||||||||||||
Interest-bearing deposits in financial institutions and federal funds sold | 487 | (36 | ) | 364 | 330 | 212 | |||||||||||||
Mortgage loans held for sale | 3,028 | 4,137 | 1,294 | 693 | 865 | ||||||||||||||
Total Interest Income | 71,818 | 71,823 | 56,241 | 54,734 | 54,811 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Deposits | 5,928 | 5,909 | 5,267 | 5,213 | 5,119 | ||||||||||||||
Advances from the Federal Home Loan Bank | 3,546 | 3,276 | 3,158 | 3,163 | 3,326 | ||||||||||||||
Repurchase agreements and other borrowings | 193 | 33 | 32 | 22 | 35 | ||||||||||||||
Total Interest Expense | 9,667 | 9,218 | 8,457 | 8,398 | 8,480 | ||||||||||||||
Net Interest Income | 62,151 | 62,605 | 47,784 | 46,336 | 46,331 | ||||||||||||||
PROVISION FOR LOAN LOSSES | 1,831 | 1,686 | 2,099 | (259 | ) | 852 | |||||||||||||
Net Interest Income after Provision for Loan Losses | 60,320 | 60,919 | 45,685 | 46,595 | 45,479 | ||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||
Residential mortgage banking income, net | 18,096 | 21,430 | 12,148 | 7,118 | 7,255 | ||||||||||||||
Insurance commissions and other title fees and income, net | 9,823 | 11,258 | 11,627 | 14,033 | 8,997 | ||||||||||||||
Real estate brokerage and property management income, net | 2,925 | 6,647 | 6,116 | 4,827 | 2,438 | ||||||||||||||
Service charges on deposit accounts | 2,535 | 2,552 | 2,284 | 2,176 | 2,254 | ||||||||||||||
Credit card merchant fees, net | 1,135 | 1,365 | 1,113 | 895 | 767 | ||||||||||||||
Other income | 4,998 | 3,569 | 3,180 | 3,366 | 3,368 | ||||||||||||||
Net gain on investment securities | 6 | — | — | — | — | ||||||||||||||
Total Noninterest Income | 39,518 | 46,821 | 36,468 | 32,415 | 25,079 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 43,071 | 40,497 | 30,093 | 30,187 | 30,826 | ||||||||||||||
Occupancy expense | 6,885 | 6,656 | 5,157 | 5,017 | 5,156 | ||||||||||||||
Furniture and equipment | 3,378 | 3,199 | 2,381 | 2,357 | 2,390 | ||||||||||||||
Other expenses | 19,500 | 20,581 | 34,268 | 14,600 | 14,371 | ||||||||||||||
Total Noninterest Expense | 72,834 | 70,933 | 71,899 | 52,161 | 52,743 | ||||||||||||||
Income before income tax expense and noncontrolling interest | 27,004 | 36,807 | 10,254 | 26,849 | 17,815 | ||||||||||||||
Provision for income tax expense | 7,160 | 10,974 | 2,375 | 8,188 | 4,846 | ||||||||||||||
Net income | 19,844 | 25,833 | 7,879 | 18,661 | 12,969 | ||||||||||||||
Net income attributable to noncontrolling interest | (848 | ) | (1,657 | ) | (1,620 | ) | (842 | ) | (503 | ) | |||||||||
Net income attributable to TowneBank | $ | 18,996 | $ | 24,176 | $ | 6,259 | $ | 17,819 | $ | 12,466 | |||||||||
Net income available to common shareholders | $ | 18,996 | $ | 24,176 | $ | 6,259 | $ | 17,819 | $ | 12,466 | |||||||||
Per common share information | |||||||||||||||||||
Basic earnings | $ | 0.31 | $ | 0.39 | $ | 0.12 | $ | 0.35 | $ | 0.24 | |||||||||
Diluted earnings | $ | 0.31 | $ | 0.39 | $ | 0.12 | $ | 0.35 | $ | 0.24 | |||||||||
Basic weighted average shares outstanding | 61,963,948 | 61,908,316 | 51,994,473 | 51,290,010 | 51,267,447 | ||||||||||||||
Diluted weighted average shares outstanding | 62,175,705 | 62,067,832 | 52,116,772 | 51,392,857 | 51,440,440 | ||||||||||||||
Cash dividends declared | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.12 | $ | 0.12 |
TOWNEBANK | |||||||||||||||||||||||||
Banking Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Three Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||
December 31, | September 30, 2016 | December 31, 2016 December 31, 2015 | December 31, 2016 September 30, 2016 | ||||||||||||||||||||||
2016 | 2015 | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||||
Net interest income | $ | 59,482 | $ | 45,709 | $ | 58,919 | $ | 13,773 | 30.13 | % | $ | 563 | 0.96 | % | |||||||||||
Noninterest income | |||||||||||||||||||||||||
Service charges on deposit accounts | 2,535 | 2,254 | 2,552 | 281 | 12.47 | % | (17 | ) | (0.67 | )% | |||||||||||||||
Credit card merchant fees | 1,135 | 767 | 1,365 | 368 | 47.98 | % | (230 | ) | (16.85 | )% | |||||||||||||||
Other income | 4,125 | 2,462 | 2,685 | 1,663 | 67.55 | % | 1,440 | 53.63 | % | ||||||||||||||||
Subtotal | 7,795 | 5,483 | 6,602 | 2,312 | 42.17 | % | 1,193 | 18.07 | % | ||||||||||||||||
Gain (loss) on investment securities | 6 | (10 | ) | 16 | 16 | (160.00 | )% | (10 | ) | (62.50 | )% | ||||||||||||||
Total noninterest income | 7,801 | 5,473 | 6,618 | 2,328 | 42.54 | % | 1,183 | 17.88 | % | ||||||||||||||||
Total revenue | $ | 67,283 | $ | 51,182 | $ | 65,537 | $ | 16,101 | 31.46 | % | $ | 1,746 | 2.66 | % | |||||||||||
Provision for loan losses | 1,801 | 852 | 1,686 | 949 | 111.38 | % | 115 | 6.82 | % | ||||||||||||||||
Expenses | |||||||||||||||||||||||||
Salaries and employee benefits | $ | 23,770 | $ | 18,463 | $ | 20,509 | $ | 5,307 | 28.74 | % | $ | 3,261 | 15.90 | % | |||||||||||
Occupancy expense | 4,349 | 3,674 | 4,197 | 675 | 18.37 | % | 152 | 3.62 | % | ||||||||||||||||
Furniture and equipment | 2,374 | 1,887 | 2,358 | 487 | 25.81 | % | 16 | 0.68 | % | ||||||||||||||||
Advertising and marketing | 749 | 1,092 | 922 | (343 | ) | (31.41 | )% | (173 | ) | (18.76 | )% | ||||||||||||||
Charitable contributions | 1,011 | 1,049 | 919 | (38 | ) | (3.62 | )% | 92 | 10.01 | % | |||||||||||||||
Outside processing | 1,387 | 821 | 1,280 | 566 | 68.94 | % | 107 | 8.36 | % | ||||||||||||||||
Foreclosed property expenses | 607 | (190 | ) | 154 | 797 | (419.47 | )% | 453 | 294.16 | % | |||||||||||||||
FDIC and other insurance | 848 | 1,114 | 1,224 | (266 | ) | (23.88 | )% | (376 | ) | (30.72 | )% | ||||||||||||||
Professional fees | 1,181 | 1,205 | 965 | (24 | ) | (1.99 | )% | 216 | 22.38 | % | |||||||||||||||
Telephone and postage | 997 | 716 | 962 | 281 | 39.25 | % | 35 | 3.64 | % | ||||||||||||||||
Other expenses | 4,241 | 3,748 | 5,180 | 493 | 13.15 | % | (939 | ) | (18.13 | )% | |||||||||||||||
Total expenses | $ | 41,514 | $ | 33,579 | $ | 38,670 | $ | 7,935 | 23.63 | % | $ | 2,844 | 7.35 | % | |||||||||||
Income before income tax, corporate allocation and noncontrolling interest | $ | 23,968 | $ | 16,751 | $ | 25,181 | $ | 7,217 | 43.08 | % | $ | (1,213 | ) | (4.82 | )% | ||||||||||
Plus: Acquisition related expenses | (735 | ) | 604 | 859 | (1,339 | ) | (221.69 | )% | (1,594 | ) | (185.56 | )% | |||||||||||||
Plus: Amortization of intangible assets | 631 | 55 | 655 | 576 | 1,047.27 | % | (24 | ) | (3.66 | )% | |||||||||||||||
Operating earnings before income taxes (non-GAAP) | $ | 23,864 | $ | 17,410 | $ | 26,695 | $ | 6,454 | 37.07 | % | $ | (2,831 | ) | (10.60 | )% |
TOWNEBANK | ||||||||||||||
Banking Segment Financial Information | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Year Ended | Increase/(Decrease) | |||||||||||||
December 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | Amount | Percent | |||||||||||
Revenue | ||||||||||||||
Net interest income | $ | 211,112 | $ | 177,715 | $ | 33,397 | 18.79 | % | ||||||
Noninterest income | ||||||||||||||
Service charges on deposit accounts | 9,547 | 9,165 | 382 | 4.17 | % | |||||||||
Credit card merchant fees | 4,508 | 2,588 | 1,920 | 74.19 | % | |||||||||
Other income | 11,500 | 10,002 | 1,498 | 14.98 | % | |||||||||
Subtotal | 25,555 | 21,755 | 3,800 | 17.47 | % | |||||||||
Gain (loss) on investment securities | 9 | 904 | (895 | ) | (99.00 | )% | ||||||||
Total noninterest income | 25,564 | 22,659 | 2,905 | 12.82 | % | |||||||||
Total revenue | $ | 236,676 | $ | 200,374 | $ | 36,302 | 18.12 | % | ||||||
Provision for loan losses | 5,326 | 3,027 | 2,299 | 75.95 | % | |||||||||
Expenses | ||||||||||||||
Salaries and employee benefits | $ | 78,910 | $ | 69,070 | $ | 9,840 | 14.25 | % | ||||||
Occupancy expense | 15,610 | 13,791 | 1,819 | 13.19 | % | |||||||||
Furniture and equipment | 8,445 | 7,404 | 1,041 | 14.06 | % | |||||||||
Advertising and marketing | 3,478 | 3,960 | (482 | ) | (12.17 | )% | ||||||||
Charitable contributions | 4,192 | 4,943 | (751 | ) | (15.19 | )% | ||||||||
Outside processing | 4,439 | 3,373 | 1,066 | 31.60 | % | |||||||||
Foreclosed property expenses | 1,326 | 1,785 | (459 | ) | (25.71 | )% | ||||||||
FDIC and other insurance | 4,243 | 4,624 | (381 | ) | (8.24 | )% | ||||||||
Professional fees | 4,081 | 4,330 | (249 | ) | (5.75 | )% | ||||||||
Telephone and postage | 3,420 | 2,928 | 492 | 16.80 | % | |||||||||
Other expenses | 34,200 | 12,540 | 21,660 | 172.73 | % | |||||||||
Total expenses | $ | 162,344 | $ | 128,748 | $ | 33,596 | 26.09 | % | ||||||
Income before income tax expense, corporate allocation and noncontrolling interest | $ | 69,006 | $ | 68,599 | $ | 407 | 0.59 | % | ||||||
Plus: Acquisition related expenses | 18,470 | 1,085 | 17,385 | 1,602.30 | % | |||||||||
Plus: Amortization of intangible assets | 1,396 | 220 | 1,176 | 534.55 | % | |||||||||
Operating earnings before income taxes (non-GAAP) | $ | 88,872 | $ | 69,904 | $ | 18,968 | 27.13 | % |
TOWNEBANK | |||||||||||||||||||||||||
Realty Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
December 31, 2016 | December 31, 2016 | ||||||||||||||||||||||||
December 31, | September 30, | December 31, 2015 | September 30, 2016 | ||||||||||||||||||||||
2016 | 2015 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Revenue | |||||||||||||||||||||||||
Residential mortgage brokerage income, net | $ | 18,378 | $ | 7,446 | $ | 21,692 | $ | 10,932 | 146.82 | % | $ | (3,314 | ) | (15.28 | )% | ||||||||||
Real estate brokerage income, net | 1,761 | 1,654 | 2,267 | 107 | 6.47 | % | (506 | ) | (22.32 | )% | |||||||||||||||
Title insurance and settlement fees | 422 | 363 | 562 | 59 | 16.25 | % | (140 | ) | (24.91 | )% | |||||||||||||||
Property management fees, net | 1,163 | 784 | 4,381 | 379 | 48.34 | % | (3,218 | ) | (73.45 | )% | |||||||||||||||
Income from unconsolidated subsidiary | 218 | 200 | 283 | 18 | 9.00 | % | (65 | ) | (22.97 | )% | |||||||||||||||
Net interest and other income | 2,959 | 944 | 3,965 | 2,015 | 213.45 | % | (1,006 | ) | (25.37 | )% | |||||||||||||||
Total revenue | $ | 24,901 | $ | 11,391 | $ | 33,150 | $ | 13,510 | 118.60 | % | $ | (8,249 | ) | (24.88 | )% | ||||||||||
Expenses | |||||||||||||||||||||||||
Salaries and employee benefits | $ | 13,551 | $ | 6,501 | $ | 14,198 | $ | 7,050 | 108.44 | % | $ | (647 | ) | (4.56 | )% | ||||||||||
Occupancy expense | 2,002 | 944 | 1,922 | 1,058 | 112.08 | % | 80 | 4.16 | % | ||||||||||||||||
Furniture and equipment | 807 | 267 | 762 | 540 | 202.25 | % | 45 | 5.91 | % | ||||||||||||||||
Amortization of intangible assets | 565 | 241 | 559 | 324 | 134.44 | % | 6 | 1.07 | % | ||||||||||||||||
Other expenses | 5,909 | 3,007 | 6,325 | 2,902 | 96.51 | % | (416 | ) | (6.58 | )% | |||||||||||||||
Total expenses | $ | 22,834 | $ | 10,960 | $ | 23,766 | $ | 11,874 | 108.34 | % | $ | (932 | ) | (3.92 | )% | ||||||||||
Income before income tax, corporate allocation, and noncontrolling interest | $ | 2,067 | $ | 431 | $ | 9,384 | $ | 1,636 | 379.58 | % | $ | (7,317 | ) | (77.97 | )% | ||||||||||
Plus: Acquisition related expenses | 22 | 15 | 109 | 7 | 46.67 | % | (87 | ) | (79.82 | )% | |||||||||||||||
Plus: Amortization of intangible assets | 565 | 241 | 559 | 324 | 134.44 | % | 6 | 1.07 | % | ||||||||||||||||
Operating earnings before income taxes (non-GAAP) | $ | 2,654 | $ | 687 | $ | 10,052 | $ | 1,967 | 286.32 | % | $ | (7,398 | ) | (73.60 | )% |
TOWNEBANK | ||||||||||||||
Realty Segment Financial Information | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Year Ended | Increase/(Decrease) | |||||||||||||
December 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | Amount | Percent | |||||||||||
Revenue | ||||||||||||||
Residential mortgage banking income, net | $ | 59,870 | $ | 34,952 | $ | 24,918 | 71.29 | % | ||||||
Real estate brokerage income, net | 7,833 | 6,874 | 959 | 13.95 | % | |||||||||
Title insurance and settlement fees | 1,883 | 1,574 | 309 | 19.63 | % | |||||||||
Property management fees, net | 12,682 | 9,452 | 3,230 | 34.17 | % | |||||||||
Income from unconsolidated subsidiary | 881 | 648 | 233 | 35.96 | % | |||||||||
Net interest and other income | 8,854 | 5,022 | 3,832 | 76.30 | % | |||||||||
Total revenue | $ | 92,003 | $ | 58,522 | $ | 33,481 | 57.21 | % | ||||||
Expenses | ||||||||||||||
Salaries and employee benefits | $ | 41,706 | $ | 24,916 | $ | 16,790 | 67.39 | % | ||||||
Occupancy expense | 5,989 | 3,900 | 2,089 | 53.56 | % | |||||||||
Furniture and equipment | 2,113 | 1,030 | 1,083 | 105.15 | % | |||||||||
Amortization of intangible assets | 1,829 | 1,027 | 802 | 78.09 | % | |||||||||
Other expenses | 19,292 | 12,371 | 6,921 | 55.95 | % | |||||||||
Total expenses | $ | 70,929 | $ | 43,244 | $ | 27,685 | 64.02 | % | ||||||
Income before income tax, corporate allocation, and noncontrolling interest | $ | 21,074 | $ | 15,278 | $ | 5,796 | 37.94 | % | ||||||
Plus: Acquisition related expenses | 280 | 42 | 238 | 566.67 | % | |||||||||
Plus: Amortization of intangible assets | 1,829 | 1,027 | 802 | 78.09 | % | |||||||||
Operating earnings before income taxes (non-GAAP) | $ | 23,183 | $ | 16,347 | $ | 6,836 | 41.82 | % | ||||||
TOWNEBANK | |||||||||||||||||||||||||
Insurance Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||
Three Months Ended | December 31, 2016 | December 31, 2016 | |||||||||||||||||||||||
December 31, | September 30, | December 31, 2015 | September 30, 2016 | ||||||||||||||||||||||
2016 | 2015 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Commission and fee income | |||||||||||||||||||||||||
Property and casualty | $ | 7,614 | $ | 7,371 | $ | 9,068 | $ | 243 | 3.30 | % | $ | (1,454 | ) | (16.03 | )% | ||||||||||
Employee benefits | 2,930 | 2,588 | 2,947 | 342 | 13.21 | % | (17 | ) | (0.58 | )% | |||||||||||||||
Travel insurance | 828 | 630 | 926 | 198 | 31.43 | % | (98 | ) | (10.58 | )% | |||||||||||||||
Specialized benefit services | 164 | 144 | 154 | 20 | 13.89 | % | 10 | 6.49 | % | ||||||||||||||||
Total commissions and fees | 11,536 | 10,733 | 13,095 | 803 | 7.48 | % | (1,559 | ) | (11.91 | )% | |||||||||||||||
Contingency and bonus revenue | 67 | 53 | 45 | 14 | 26.42 | % | 22 | 48.89 | % | ||||||||||||||||
Other income | 71 | 58 | 82 | 13 | 22.41 | % | (11 | ) | (13.41 | )% | |||||||||||||||
Total revenue | $ | 11,674 | $ | 10,844 | $ | 13,222 | $ | 830 | 7.65 | % | $ | (1,548 | ) | (11.71 | )% | ||||||||||
Employee commission expense | 2,221 | 2,008 | 2,482 | 213 | 10.61 | % | (261 | ) | (10.52 | )% | |||||||||||||||
Revenue, net of commission expense | $ | 9,453 | $ | 8,836 | $ | 10,740 | $ | 617 | 6.98 | % | $ | (1,287 | ) | (11.98 | )% | ||||||||||
Salaries and employee benefits | $ | 5,749 | $ | 5,863 | $ | 5,790 | $ | (114 | ) | (1.94 | )% | $ | (41 | ) | (0.71 | )% | |||||||||
Occupancy expense | 535 | 537 | 537 | (2 | ) | (0.37 | )% | (2 | ) | (0.37 | )% | ||||||||||||||
Furniture and equipment | 196 | 235 | 78 | (39 | ) | (16.60 | )% | 118 | 151.28 | % | |||||||||||||||
Amortization of intangible assets | 701 | 676 | 706 | 25 | 3.70 | % | (5 | ) | (0.71 | )% | |||||||||||||||
Other expenses | 1,304 | 892 | 1,385 | 412 | 46.19 | % | (81 | ) | (5.85 | )% | |||||||||||||||
Total operating expenses | $ | 8,485 | $ | 8,203 | $ | 8,496 | $ | 282 | 3.44 | % | $ | (11 | ) | (0.13 | )% | ||||||||||
Income before income tax and noncontrolling interest | $ | 968 | $ | 633 | $ | 2,244 | $ | 335 | 52.92 | % | $ | (1,276 | ) | (56.86 | )% | ||||||||||
Plus: Acquisition related expenses | 7 | (334 | ) | — | 341 | N/M | 7 | N/M | |||||||||||||||||
Plus: Amortization of intangible assets | 701 | 676 | 706 | 25 | 3.70 | % | (5 | ) | (0.71 | )% | |||||||||||||||
Operating earnings before income taxes (non-GAAP) | $ | 1,676 | $ | 975 | $ | 2,950 | $ | 701 | 71.90 | % | $ | (1,274 | ) | (43.19 | )% | ||||||||||
TOWNEBANK | ||||||||||||||
Insurance Segment Financial Information | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Year Ended | Increase/(Decrease) | |||||||||||||
December 31, | 2016 over 2015 | |||||||||||||
2016 | 2015 | Amount | Percent | |||||||||||
Commission and fee income | ||||||||||||||
Property and casualty | $ | 33,544 | $ | 29,978 | $ | 3,566 | 11.90 | % | ||||||
Employee benefits | 11,683 | 10,279 | 1,404 | 13.66 | % | |||||||||
Travel insurance | 4,374 | 3,297 | 1,077 | 32.67 | % | |||||||||
Specialized benefit services | 623 | 557 | 66 | 11.85 | % | |||||||||
Total commissions and fees | 50,224 | 44,111 | 6,113 | 13.86 | % | |||||||||
Contingency and bonus revenue | 4,008 | 3,223 | 785 | 24.36 | % | |||||||||
Other income | 280 | 206 | 74 | 35.92 | % | |||||||||
Total revenue | $ | 54,512 | $ | 47,540 | $ | 6,972 | 14.67 | % | ||||||
Employee commission expense | 9,124 | 8,711 | 413 | 4.74 | % | |||||||||
Revenue, net of commission expense | $ | 45,388 | $ | 38,829 | $ | 6,559 | 16.89 | % | ||||||
Salaries and employee benefits | $ | 23,231 | $ | 19,974 | $ | 3,257 | 16.31 | % | ||||||
Occupancy expense | 2,117 | 1,954 | 163 | 8.34 | % | |||||||||
Furniture and equipment | 758 | 904 | (146 | ) | (16.15 | )% | ||||||||
Amortization of intangible assets | 2,784 | 2,285 | 499 | 21.84 | % | |||||||||
Other expenses | 5,665 | 5,048 | 617 | 12.22 | % | |||||||||
Total operating expenses | $ | 34,555 | $ | 30,165 | $ | 4,390 | 14.55 | % | ||||||
Income before income tax, corporate allocation and noncontrolling interest | $ | 10,833 | $ | 8,664 | $ | 2,169 | 25.03 | % | ||||||
Plus: Acquisition related expenses | 361 | 186 | 175 | 94.09 | % | |||||||||
Plus: Amortization of intangible assets | 2,784 | 2,285 | 499 | 21.84 | % | |||||||||
Operating earnings before income taxes (non-GAAP) | $ | 13,978 | $ | 11,135 | $ | 2,843 | 25.53 | % | ||||||
TOWNEBANK | |||||||||||||||||||
Reconcilement of Non-GAAP Financial Measures: | |||||||||||||||||||
Three Months Ended | Twelve months ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Return on average assets (GAAP basis) | 0.95 | % | 1.20 | % | 0.78 | % | 0.93 | % | 1.03 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 0.10 | % | 0.09 | % | 0.07 | % | 0.09 | % | 0.07 | % | |||||||||
Return on average tangible assets (Non-GAAP) | 1.05 | % | 1.29 | % | 0.85 | % | 1.02 | % | 1.10 | % | |||||||||
Return on average equity (GAAP basis) | 6.95 | % | 8.95 | % | 6.00 | % | 6.98 | % | 7.75 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.32 | % | 3.92 | % | 2.11 | % | 2.95 | % | 2.59 | % | |||||||||
Return on average tangible equity (Non-GAAP) | 10.27 | % | 12.87 | % | 8.11 | % | 9.93 | % | 10.34 | % | |||||||||
Return on average common equity (GAAP basis) | 7.02 | % | 9.04 | % | 6.07 | % | 7.05 | % | 7.85 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.40 | % | 4.01 | % | 2.15 | % | 3.02 | % | 2.66 | % | |||||||||
Return on average tangible common equity (Non-GAAP) | 10.42 | % | 13.05 | % | 8.22 | % | 10.07 | % | 10.51 | % | |||||||||
Book value (GAAP basis) | $ | 17.20 | $ | 17.11 | $ | 15.71 | $ | 17.20 | $ | 15.71 | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | (4.84 | ) | (4.88 | ) | (3.50 | ) | (4.84 | ) | (3.50 | ) | |||||||||
Tangible book value | $ | 12.36 | $ | 12.23 | $ | 12.21 | $ | 12.36 | $ | 12.21 | |||||||||
TOWNEBANK | ||||||||||||||||||||
Reconcilement of Non-GAAP Financial Measures | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
Reconcilement of GAAP Earnings to Core Operating Earnings | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
Net income (GAAP) | $ | 19,019 | $ | 24,176 | $ | 6,259 | $ | 17,819 | $ | 12,466 | ||||||||||
Acquisition-related expenses | (707 | ) | 969 | 18,435 | 414 | 285 | ||||||||||||||
Non-core charges | (707 | ) | 969 | 18,435 | 414 | 285 | ||||||||||||||
Income tax expense | 264 | (267 | ) | (6,177 | ) | (33 | ) | (100 | ) | |||||||||||
Non-core charges, net of taxes | (443 | ) | 702 | 12,258 | 381 | 185 | ||||||||||||||
Core operating earnings (non-GAAP) | $ | 18,576 | $ | 24,878 | $ | 18,517 | $ | 18,200 | $ | 12,651 | ||||||||||
Weighted average diluted shares | 62,175,705 | 62,067,832 | 52,116,772 | 51,392,857 | 51,440,440 | |||||||||||||||
Diluted EPS (GAAP) | $ | 0.31 | $ | 0.39 | $ | 0.12 | $ | 0.35 | $ | 0.24 | ||||||||||
Core diluted EPS (non-GAAP) | $ | 0.30 | $ | 0.40 | $ | 0.36 | $ | 0.35 | $ | 0.25 | ||||||||||
Average assets | $ | 7,965,438 | $ | 7,991,213 | $ | 6,534,063 | $ | 6,313,238 | $ | 6,305,571 | ||||||||||
Average tangible equity | 783,789 | $ | 772,932 | $ | 665,690 | $ | 643,464 | $ | 638,855 | |||||||||||
Core return on average assets (non-GAAP) | 0.93 | % | 1.24 | % | 1.14 | % | 1.16 | % | 0.80 | % | ||||||||||
Core return on average tangible equity (non-GAAP) | 10.05 | % | 13.23 | % | 11.60 | % | 11.80 | % | 8.23 | % | ||||||||||
Core efficiency ratio (Non-GAAP) (1) | 72.34 | % | 63.94 | % | 63.46 | % | 65.71 | % | 73.46 | % | ||||||||||
(1) Excludes gain on investment securities and acquisition-related expenses |
TOWNEBANK | ||||||||
Reconcilement of Non-GAAP Financial Measures | ||||||||
(dollars in thousands) | ||||||||
Year Ended | ||||||||
December 31, | December 31, | |||||||
Reconcilement of GAAP Earnings to Core Operating Earnings | 2016 | 2015 | ||||||
Net income (GAAP) | $ | 67,250 | $ | 62,382 | ||||
Acquisition-related expenses | 19,111 | 1,312 | ||||||
Non-core charges | 19,111 | 1,312 | ||||||
Income tax expense | (6,213 | ) | (459 | ) | ||||
Non-core charges, net of taxes | 12,898 | 853 | ||||||
Core operating earnings (non-GAAP) | $ | 80,148 | $ | 63,235 | ||||
Weighted average diluted shares | 56,983,305 | 51,161,241 | ||||||
Diluted EPS (GAAP) | $ | 1.18 | $ | 1.22 | ||||
Core diluted EPS (non-GAAP) | $ | 1.41 | $ | 1.24 | ||||
Average assets | $ | 7,205,236 | $ | 6,039,418 | ||||
Average tangible equity | $ | 716,807 | $ | 624,088 | ||||
Core return on average assets (non-GAAP) | 1.11 | % | 1.05 | % | ||||
Core return on average tangible equity (non-GAAP) | 11.73 | % | 10.50 | % | ||||
Core efficiency ratio (Non-GAAP) (1) | 66.49 | % | 67.67 | % | ||||
(1) Excludes gain on investment securities and acquisition-related expenses |