SUFFOLK, Va., April 27, 2017 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the “Bank” or “Company”) (NASDAQ:TOWN) today reported earnings of $21.97 million for the quarter ended March 31, 2017, as compared to the $17.82 million reported for the comparative period in 2016, representing a 23.28% increase. Fully diluted earnings per share were $0.35 per share, unchanged from the comparative period of 2016.
The Bank’s quarterly dividend was $0.13 per share resulting in total common dividends of $8.13 million. The current dividend represents an increase of 8.3% over the dividend paid during the same quarter of 2016.
“We are pleased to announce another quarter of strong earnings with solid loan and deposit growth,” said G. Robert Aston, Jr., Chairman and Chief Executive Officer. “We saw continued growth in our noninterest income streams and a reduction in noninterest expenses from fourth quarter 2016, while producing a return on average assets of 1.11% and a return on average tangible equity of 11.88%.”
First Quarter 2017 Performance Highlights
• Total revenues were $105.17 million, an increase of $26.42 million, or 33.54% from first quarter 2016
- Taxable equivalent net interest margin was 3.45%, including accretion of 9 basis points, compared to 3.33%, including accretion of 6 basis points, for 2016
- Insurance segment total revenue increased 4.78% to $16.85 million
• Loans held for investment increased $1.36 billion, or 29.89%, from March 31, 2016 with organic growth of $552.68 million, or 12.14%, excluding $808.14 million of loans acquired in the Monarch Financial Holdings, Inc. (“Monarch”) merger on June 24, 2016
• Total deposits were $6.19 billion, an increase of $1.24 billion, or 24.94%, from 2016. The increase included $1.06 billion deposits acquired in the Monarch merger
- Noninterest bearing deposits increased by 41.59%, to $2.05 billion, representing 33.16% of total deposits
- Total cost of deposits decreased to 0.40% from 0.43% at March 31, 2016
• Asset quality showed continued strength
- Nonperforming assets declined to $35.81 million, or 0.44% of total assets compared to $37.68 million, or 0.59%, at March 31, 2016
- Nonperforming loans were 0.20% of period end loans
- Foreclosed property decreased to $21.47 million
• The Bank remained well-capitalized
- Common equity tier 1 capital ratio of 11.94%
- Tier 1 leverage capital ratio of 10.49%
- Tier 1 risk-based capital ratio of 11.98%
- Total risk-based capital ratio of 12.62%
- Tangible book value increased to $12.59
First Quarter 2017 Earnings Compared to First Quarter 2016
Net income for the first quarter was $21.97 million, or $0.35 per diluted share, versus $17.82 million, or $0.35 per diluted share, in 2016, reflecting strong growth in net interest income as compared to the prior year period.
Net Interest Income
Net interest income increased to $60.28 million, a $13.95 million, or 30.10%, increase from first quarter 2016. The primary driver was the growth in average earning assets, which increased $1.51 billion, or 26.71%, while tax-equivalent net interest margin increased to 3.45% in the current quarter from 3.33% in first quarter 2016. Accretion income added $1.13 million, or 9 basis points, to margin in the current quarter as compared to $0.65 million, or 6 basis points, in the first quarter of 2016.
Noninterest Income
Noninterest income was $44.89 million for the first quarter of 2017, an increase of $12.47 million, or 38.47%, from the first quarter of 2016. Residential mortgage banking income increased $10.51 million, or 147.71%, from the first quarter of 2016 primarily due to higher production volumes resulting from the Monarch merger. Mortgage production was $706.06 million in first quarter 2017, which was $392.92 million higher than first quarter 2016 production of $313.14 million. Insurance commissions and other title fees increased $0.77 million, or 5.47%, primarily due to organic growth across the lines of business.
Noninterest Expense
Noninterest expense increased by $18.09 million, or 34.68%, from the comparative quarter of 2016. The primary driver was an increase of $10.02 million in salaries and benefits expense due to the addition of staff related to the Monarch acquisition and organic growth. Also contributing were increases in occupancy expenses of $1.67 million and furniture and equipment expenses of $0.99 million primarily related to mortgage facilities acquired in the Monarch acquisition.
First Quarter 2017 Earnings Compared to Fourth Quarter 2016
Net income for the first quarter was $21.97 million, or $0.35 per diluted share, versus $19.0 million, or $0.31 per diluted share, in fourth quarter 2016, reflecting the seasonality in our Insurance and Realty segments.
Performance Highlights
• Total revenues were $105.17 million compared to $101.67 million in the fourth quarter of 2016
- Taxable equivalent net interest margin was 3.45%, including accretion of 9 basis points, compared to 3.52%, including accretion of 15 basis points, in the fourth quarter of 2016
- Noninterest income, excluding gains on investment securities, increased $5.37 million due to seasonality in our Insurance and Realty segments
• Total loans held for investment increased $105.86 million, or 7.29% on an annualized basis, from December 31, 2016
Net Interest Income
On a linked quarter basis, net interest income decreased by $1.87 million or 3.01%, in first quarter 2017 versus fourth quarter 2016, while tax-equivalent net interest margin was 3.45% versus 3.52% for the fourth quarter of 2016. The decrease in net interest income was primarily due to seasonally lower loans held for sale average balances combined with a decrease in accretion income. Accretion income added $1.13 million, or 9 basis points, to margin in the current quarter, as compared to $2.34 million, or 15 basis points, in the linked quarter.
Noninterest Income
In comparison to the fourth quarter of 2016, noninterest income increased $5.37 million, or 13.58%. The increase was driven by insurance commission income, which grew by $4.98 million, or 50.67%, due to organic growth and with higher contingent commission revenue, which is mostly received during the first quarter of each year. Additionally, real estate brokerage and property management income was higher due to a seasonal increase related to our resort property management business. Residential mortgage banking income decreased by $0.46 million, or 2.56%, from the fourth quarter of 2016 primarily due to a seasonal decrease in mortgage production of $299.93 million, from $1.01 billion in fourth quarter 2016 to $706.06 million in first quarter 2017.
Noninterest Expense
Noninterest expense decreased by $2.59 million, or 3.55%, from the fourth quarter of 2016. The primary driver was a decrease in salaries and benefits expenses of $2.86 million related to decreases in employee profit-sharing and incentive plan expenses.
Noninterest Income
% Change | |||||||||||||||||
Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | |||||||||||||
(dollars in thousands) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | ||||||||||||
Residential mortgage banking income, net | $ | 17,632 | $ | 7,118 | $ | 18,096 | 147.71 | % | (2.56 | )% | |||||||
Insurance commissions and other title fees and income, net | 14,800 | 14,033 | 9,823 | 5.47 | % | 50.67 | % | ||||||||||
Real estate brokerage and property management, net | 4,993 | 4,827 | 2,925 | 3.44 | % | 70.70 | % | ||||||||||
Service charges on deposit accounts | 2,472 | 2,176 | 2,535 | 13.60 | % | (2.49 | )% | ||||||||||
Credit card merchant fees, net | 1,118 | 895 | 1,135 | 24.92 | % | (1.50 | )% | ||||||||||
Other income | 3,871 | 3,366 | 4,998 | 15.00 | % | (22.55 | )% | ||||||||||
Subtotal before gain on investment securities | 44,886 | 32,415 | 39,512 | 38.47 | % | 13.60 | % | ||||||||||
Net gain on investment securities | — | — | 6 | — | (100.00 | )% | |||||||||||
Total noninterest income | $ | 44,886 | $ | 32,415 | $ | 39,518 | 38.47 | % | 13.58 | % |
Noninterest Expense
% Change | |||||||||||||||||
Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | |||||||||||||
(dollars in thousands) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | ||||||||||||
Salaries and benefits | $ | 40,208 | $ | 30,187 | $ | 43,071 | 33.20 | % | (6.65 | )% | |||||||
Occupancy expense | 6,684 | 5,017 | 6,885 | 33.23 | % | (2.92 | )% | ||||||||||
Furniture and equipment | 3,343 | 2,357 | 3,378 | 41.83 | % | (1.04 | )% | ||||||||||
Acquisition-related expenses | (5 | ) | 414 | (707 | ) | (101.21 | )% | (99.29 | )% | ||||||||
Other expenses | 20,018 | 14,186 | 20,207 | 41.11 | % | (0.94 | )% | ||||||||||
Total noninterest expense | $ | 70,248 | $ | 52,161 | $ | 72,834 | 34.68 | % | (3.55 | )% |
Segment Results
$ Change | ||||||||||||||||||||
(in thousands) | Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | |||||||||||||||
Segment Net Income (Loss) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | |||||||||||||||
Banking | $ | 17,967 | $ | 14,133 | $ | 17,931 | $ | 3,834 | $ | 36 | ||||||||||
Realty | 926 | 1,033 | 673 | (107 | ) | 253 | ||||||||||||||
Insurance | 3,075 | 2,653 | 392 | 422 | 2,683 | |||||||||||||||
Total net income | $ | 21,968 | $ | 17,819 | $ | 18,996 | $ | 4,149 | $ | 2,972 |
First Quarter 2017 Compared to First Quarter 2016
Banking
Net income for the three months ended March 31, 2017 for the Banking segment was $17.97 million, increasing $3.83 million, or 27.13% from comparative 2016, as net interest income climbed by $12.62 million primarily due to the increase in earning assets from the Monarch merger. Also contributing to the variance was an increase in noninterest income of $1.10 million, which included increases in service charges and credit card merchant fees. These factors were partially offset by increases in the provision for loan losses of $2.80 million and noninterest expenses of $6.17 million.
Realty
For the three months ended March 31, 2017, the Realty segment net income decreased to $0.93 million from $1.03 million from comparative quarter 2016. The decrease was driven by additional noninterest expenses of $11.89 million primarily due to an increase in mortgage operational expenses related to the merger with Monarch, including an increase in personnel costs of $7.00 million. The decrease was mostly offset by an increase in residential mortgage banking income of $10.47 million, or 143.16%, due to higher production volumes resulting from the Monarch merger. Additionally, net interest and other income increased by $1.44 million as higher production volume led to higher average mortgage loans held for sale.
Insurance
The Insurance segment had net income of $3.08 million for the three months ended March 31, 2017, an increase of $0.42 million compared to first quarter 2016. The increase in net income was driven by organic growth in property and casualty insurance, employee benefit insurance, and travel insurance commission income.
First Quarter 2017 Compared to Fourth Quarter 2016
Banking
Earnings increased slightly by $0.04 million, or 0.20% from the fourth quarter of 2016 as decreases in personnel costs of $3.43 million were partially offset by decreases in net interest income and bank-owned life insurance income. Additionally, loan growth in the quarter led to an increase of $0.74 million in the provision for loan losses.
Realty
Net income in the Realty segment increased by $0.25 million from the linked quarter ended December 31, 2016. The increase was primarily a result of a seasonal increase in resort property management fees of $2.37 million, partially offset by seasonal decreases in the Bank's mortgage and real estate brokerage businesses.
Insurance
Net income increased $2.68 million from the fourth quarter of 2016 driven by an increase in contingency and bonus revenue of $3.47 million. Contingent commissions are seasonal in nature and are mostly received during the first half of each year. Additionally, commissions from travel insurance increased by $0.80 million and property and casualty commissions increased by $0.84 million due to organic growth and seasonal increases.
Balance Sheet
At March 31, 2017, total Bank assets reached $8.17 billion, an increase of $1.81 billion, or 28.43%, over March 31, 2016.
Loans
% Change | |||||||||||||||||
Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | |||||||||||||
(dollars in thousands) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | ||||||||||||
Construction and land development | $ | 898,540 | $ | 635,992 | $ | 826,027 | 41.28 | % | 8.78 | % | |||||||
Commercial real estate - investment related properties | 1,362,184 | 998,082 | 1,322,466 | 36.48 | % | 3.00 | % | ||||||||||
Commercial real estate - owner occupied | 907,049 | 764,230 | 928,846 | 18.69 | % | (2.35 | )% | ||||||||||
Multifamily real estate | 236,782 | 160,246 | 222,791 | 47.76 | % | 6.28 | % | ||||||||||
1-4 family residential real estate | 1,215,278 | 988,432 | 1,215,823 | 22.95 | % | (0.04 | )% | ||||||||||
Commercial and industrial business loans | 1,086,273 | 852,005 | 1,089,539 | 27.50 | % | (0.30 | )% | ||||||||||
Consumer loans and other | 206,974 | 153,273 | 201,729 | 35.04 | % | 2.60 | % | ||||||||||
Total | $ | 5,913,080 | $ | 4,552,260 | $ | 5,807,221 | 29.89 | % | 1.82 | % |
The Bank’s loan portfolio ended the period at $5.91 billion representing an increase of 29.89%, or $1.36 billion, from the prior year, and an increase of $105.86 million, or 1.82%, from December 31, 2016. In addition to organic growth, the increase from the prior year is related to loans acquired in the Monarch merger on June 24, 2016.
Deposits
% Change | |||||||||||||||||
Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | |||||||||||||
(dollars in thousands) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | ||||||||||||
Noninterest-bearing demand | $ | 2,052,598 | $ | 1,449,660 | $ | 1,947,312 | 41.59 | % | 5.41 | % | |||||||
Interest-bearing: | |||||||||||||||||
Demand and money market accounts | 2,270,025 | 1,769,414 | 2,263,894 | 28.29 | % | 0.27 | % | ||||||||||
Savings | 320,104 | 302,373 | 319,611 | 5.86 | % | 0.15 | % | ||||||||||
Certificates of deposits | 1,548,045 | 1,433,679 | 1,504,380 | 7.98 | % | 2.90 | % | ||||||||||
Total | $ | 6,190,772 | $ | 4,955,126 | $ | 6,035,197 | 24.94 | % | 2.58 | % |
The Bank continued to experience solid deposit growth with total deposits increasing to $6.19 billion, up $1.24 billion, or 24.94%, from March 31, 2016. 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 quarter at $2.05 billion, a 41.59% increase from the prior year. Noninterest-bearing deposits represented 33.16% of total deposits at March 31, 2017.
Capital Ratios
Q1 | Q1 | Q4 | |||||||
2017 | 2016 | 2016 | |||||||
Common Equity Tier 1 | 11.94 | % | 12.66 | % | 11.75 | % | |||
Tier 1 | 11.98 | % | 12.73 | % | 11.82 | % | |||
Total | 12.62 | % | 13.46 | % | 12.44 | % | |||
Tier 1 Leverage Ratio | 10.49 | % | 10.70 | % | 10.44 | % |
The Bank’s total equity at March 31, 2017 rose to $1.10 billion, an increase of $265.24 million, or 31.73%, from March 31, 2016. 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 11.94%, 11.98%, 12.62%, 10.49%, respectively. All ratios exceed the current regulatory standards for well capitalized status.
Asset Quality
(in thousands) | 3/31/2017 | 12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | ||||||||||||||
Nonperforming loans | $ | 11,538 | $ | 13,099 | $ | 11,337 | $ | 10,580 | $ | 7,944 | |||||||||
Former bank premises | 2,798 | 3,494 | — | — | — | ||||||||||||||
Foreclosed property | 21,473 | 21,011 | 22,884 | 25,707 | 29,740 | ||||||||||||||
Total nonperforming assets | $ | 35,809 | $ | 37,604 | $ | 34,221 | $ | 36,287 | $ | 37,684 | |||||||||
Quarterly net loans charged off | $ | 1,347 | $ | 485 | $ | 649 | $ | 241 | $ | 340 | |||||||||
Year-to-date net loans charged off | $ | 1,347 | $ | 1,715 | $ | 1,230 | $ | 581 | $ | 340 |
Change | ||||||||||||||||||||
Q1 | Q1 | Q4 | Q1 17 vs. | Q1 17 vs. | ||||||||||||||||
(dollars in thousands) | 2017 | 2016 | 2016 | Q1 16 | Q4 16 | |||||||||||||||
Total loans 90 days past due and still accruing | $ | 35 | $ | — | $ | 76 | $ | 35 | $ | (41 | ) | |||||||||
Total loans 30-89 days past due | $ | 11,424 | $ | 12,055 | $ | 10,459 | $ | (631 | ) | $ | 965 | |||||||||
Allowance for loan losses | $ | 43,195 | $ | 37,760 | $ | 42,001 | $ | 5,435 | $ | 1,194 | ||||||||||
Total performing TDRs | $ | 26,659 | $ | 24,955 | $ | 31,351 | $ | 1,704 | $ | (4,692 | ) | |||||||||
Nonperforming loans to period end loans | 0.20 | % | 0.17 | % | 0.23 | % | 0.03 | (0.03 | ) | |||||||||||
Nonperforming assets to period end assets | 0.44 | % | 0.59 | % | 0.47 | % | (0.15 | ) | (0.03 | ) | ||||||||||
Allowance for loan losses to period end loans | 0.73 | % | 0.83 | % | 0.72 | % | (0.10 | ) | 0.01 | |||||||||||
Allowance for loan losses (originated) to originated period end loans | 0.86 | % | 0.92 | % | 0.87 | % | (0.06 | ) | (0.01 | ) | ||||||||||
Net charge-offs to average loans (annualized) | 0.09 | % | 0.03 | % | 0.03 | % | 0.06 | 0.06 | ||||||||||||
Ratio of allowance for loan losses to nonperforming loans | 3.74 | x | 4.75 | x | 3.21 | x | (1.01 | )x | .53 | x |
Continued strength in credit quality contributed to the Bank's financial results as net charge-offs totaled $1.35 million in the first quarter of 2017 compared to $0.34 million in the first quarter of 2016 and $0.49 million in the linked quarter. Total nonperforming assets were $35.81 million, or 0.44%, of Bank assets at March 31, 2017, as compared to $37.68 million, or 0.59%, at March 31, 2016, and $37.60 million, or 0.47%, at December 31, 2016. The allowance for loan losses was $43.20 million, increased from $37.76 million at March 31, 2016 and $42.00 million at December 31, 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 $8.17 billion as of March 31, 2017, 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 March 31, | 2017 | 2016 | (Decrease) | (Decrease) | |||||||||||
Results of Operations: | |||||||||||||||
Net interest income | $ | 60,281 | $ | 46,336 | $ | 13,945 | 30.10 | % | |||||||
Noninterest income | 44,886 | 32,415 | 12,471 | 38.47 | % | ||||||||||
Total Revenue | 105,167 | 78,751 | 26,416 | 33.54 | % | ||||||||||
Acquisition-related expenses | (5 | ) | 414 | (419 | ) | (101.21 | )% | ||||||||
Noninterest expenses, excluding acquisition-related expenses | 70,253 | 51,747 | 18,506 | 35.76 | % | ||||||||||
Provision for loan losses | 2,541 | (259 | ) | 2,800 | N/M | ||||||||||
Income before income tax and noncontrolling interest | 32,378 | 26,849 | 5,529 | 20.59 | % | ||||||||||
Provision for income tax expense | 9,386 | 8,188 | 1,198 | 14.63 | % | ||||||||||
Net income | 22,992 | 18,661 | 4,331 | 23.21 | % | ||||||||||
Net income attributable to noncontrolling interest | (1,024 | ) | (842 | ) | (182 | ) | 21.62 | % | |||||||
Net income attributable to TowneBank | 21,968 | 17,819 | 4,149 | 23.28 | % | ||||||||||
Net income available to common shareholders | 21,968 | 17,819 | 4,149 | 23.28 | % | ||||||||||
Net income per common share - basic | 0.35 | 0.35 | — | — | % | ||||||||||
Net income per common share - diluted | 0.35 | 0.35 | — | — | % | ||||||||||
Period End Data: | |||||||||||||||
Total assets | $ | 8,174,786 | $ | 6,365,169 | $ | 1,809,617 | 28.43 | % | |||||||
Total assets - tangible | 7,872,823 | 6,178,224 | 1,694,599 | 27.43 | % | ||||||||||
Earning assets | 7,362,550 | 5,745,710 | 1,616,840 | 28.14 | % | ||||||||||
Loans (net of unearned income) | 5,913,080 | 4,552,260 | 1,360,820 | 29.89 | % | ||||||||||
Allowance for loan losses | 43,195 | 37,760 | 5,435 | 14.39 | % | ||||||||||
Goodwill and other intangibles | 301,962 | 186,945 | 115,017 | 61.52 | % | ||||||||||
Nonperforming assets | 35,809 | 37,684 | (1,875 | ) | (4.98 | )% | |||||||||
Noninterest bearing deposits | 2,052,598 | 1,449,660 | 602,938 | 41.59 | % | ||||||||||
Interest bearing deposits | 4,138,174 | 3,505,466 | 632,708 | 18.05 | % | ||||||||||
Total deposits | 6,190,772 | 4,955,126 | 1,235,646 | 24.94 | % | ||||||||||
Total equity | 1,101,245 | 836,003 | 265,242 | 31.73 | % | ||||||||||
Total equity - tangible | 799,283 | 649,058 | 150,225 | 23.15 | % | ||||||||||
Common equity | 1,089,760 | 826,875 | 262,885 | 31.79 | % | ||||||||||
Common equity - tangible | 787,798 | 639,930 | 147,868 | 23.11 | % | ||||||||||
Book value per common share | 17.42 | 16.00 | 1.42 | 8.88 | % | ||||||||||
Book value per common share - tangible | 12.59 | 12.38 | 0.21 | 1.70 | % | ||||||||||
Daily Average Balances: | |||||||||||||||
Total assets | $ | 8,000,366 | $ | 6,313,238 | $ | 1,687,128 | 26.72 | % | |||||||
Total assets - tangible | 7,698,310 | 6,126,524 | 1,571,786 | 25.66 | % | ||||||||||
Earning assets | 7,177,697 | 5,664,461 | 1,513,236 | 26.71 | % | ||||||||||
Loans (net of unearned income), excluding nonaccrual loans | 5,862,799 | 4,516,277 | 1,346,522 | 29.81 | % | ||||||||||
Allowance for loan losses | 42,610 | 38,555 | 4,055 | 10.52 | % | ||||||||||
Goodwill and other intangibles | 302,056 | 186,714 | 115,342 | 61.77 | % | ||||||||||
Noninterest bearing deposits | 1,957,887 | 1,415,793 | 542,094 | 38.29 | % | ||||||||||
Interest bearing deposits | 4,102,109 | 3,499,607 | 602,502 | 17.22 | % | ||||||||||
Total deposits | 6,059,996 | 4,915,400 | 1,144,596 | 23.29 | % | ||||||||||
Total equity | 1,093,490 | 830,178 | 263,312 | 31.72 | % | ||||||||||
Total equity - tangible | 791,433 | 643,464 | 147,969 | 23.00 | % | ||||||||||
Common equity | 1,082,324 | 821,268 | 261,056 | 31.79 | % | ||||||||||
Common equity - tangible | 780,268 | 634,554 | 145,714 | 22.96 | % | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.11 | % | 1.14 | % | (0.03 | )% | (2.63 | )% | |||||||
Return on average assets - tangible | 1.22 | % | 1.21 | % | 0.01 | % | 0.83 | % | |||||||
Return on average equity | 8.15 | % | 8.63 | % | (0.48 | )% | (5.56 | )% | |||||||
Return on average equity - tangible | 11.88 | % | 11.56 | % | 0.32 | % | 2.77 | % | |||||||
Return on average common equity | 8.23 | % | 8.73 | % | (0.50 | )% | (5.73 | )% | |||||||
Return on average common equity - tangible | 12.05 | % | 11.72 | % | 0.33 | % | 2.82 | % | |||||||
Net interest margin-fully tax equivalent (1) | 3.45 | % | 3.33 | % | 0.12 | % | 3.60 | % | |||||||
Net interest margin | 3.41 | % | 3.29 | % | 0.12 | % | 3.65 | % | |||||||
Average earning assets/total average assets | 89.72 | % | 89.72 | % | — | % | — | % | |||||||
Average loans/average deposits | 96.75 | % | 91.88 | % | 4.87 | % | 5.30 | % | |||||||
Average noninterest deposits/total average deposits | 32.31 | % | 28.80 | % | 3.51 | % | 12.19 | % | |||||||
Allowance for loan losses/period end loans | 0.73 | % | 0.83 | % | (0.10 | )% | (12.05 | )% | |||||||
Nonperforming assets to period end assets | 0.44 | % | 0.59 | % | (0.15 | )% | (25.42 | )% | |||||||
Period end equity/period end total assets | 13.47 | % | 13.13 | % | 0.34 | % | 2.59 | % | |||||||
Efficiency ratio | 66.80 | % | 66.24 | % | 0.56 | % | 0.85 | % | |||||||
(1) Presented on a tax-equivalent basis |
TOWNEBANK | |||||||||||||||
Selected Financial Highlights (unaudited) | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
March 31, | December 31, | Increase/ | % Increase/ | ||||||||||||
Three Months Ended | 2017 | 2016 | (Decrease) | (Decrease) | |||||||||||
Results of Operations: | |||||||||||||||
Net interest income | $ | 60,281 | $ | 62,151 | $ | (1,870 | ) | (3.01 | )% | ||||||
Noninterest income | 44,886 | 39,518 | 5,368 | 13.58 | % | ||||||||||
Total Revenue | 105,167 | 101,669 | 3,498 | 3.44 | % | ||||||||||
Acquisition-related expenses | (5 | ) | (707 | ) | 702 | (99.29 | )% | ||||||||
Noninterest expenses, excluding acquisition-related expenses | 70,253 | 73,541 | (3,288 | ) | (4.47 | )% | |||||||||
Provision for loan losses | 2,541 | 1,831 | 710 | 38.78 | % | ||||||||||
Income before income tax and noncontrolling interest | 32,378 | 27,004 | 5,374 | 19.90 | % | ||||||||||
Provision for income tax expense | 9,386 | 7,160 | 2,226 | 31.09 | % | ||||||||||
Net income | 22,992 | 19,844 | 3,148 | 15.86 | % | ||||||||||
Net income attributable to noncontrolling interest | (1,024 | ) | (848 | ) | (176 | ) | 20.75 | % | |||||||
Net income attributable to TowneBank | 21,968 | 18,996 | 2,972 | 15.65 | % | ||||||||||
Net income available to common shareholders | 21,968 | 18,996 | 2,972 | 15.65 | % | ||||||||||
Net income per common share - basic | 0.35 | 0.31 | 0.04 | 12.90 | % | ||||||||||
Net income per common share - diluted | 0.35 | 0.31 | 0.04 | 12.90 | % | ||||||||||
Period End Data: | |||||||||||||||
Total assets | $ | 8,174,786 | $ | 7,973,915 | $ | 200,871 | 2.52 | % | |||||||
Total assets - tangible | 7,872,823 | 7,671,149 | 201,674 | 2.63 | % | ||||||||||
Earning assets | 7,362,550 | 7,157,391 | 205,159 | 2.87 | % | ||||||||||
Loans (net of unearned income) | 5,913,080 | 5,807,221 | 105,859 | 1.82 | % | ||||||||||
Allowance for loan losses | 43,195 | 42,001 | 1,194 | 2.84 | % | ||||||||||
Goodwill and other intangibles | 301,962 | 302,766 | (804 | ) | (0.27 | )% | |||||||||
Nonperforming assets | 35,809 | 37,605 | (1,796 | ) | (4.78 | )% | |||||||||
Noninterest bearing deposits | 2,052,598 | 1,947,312 | 105,286 | 5.41 | % | ||||||||||
Interest bearing deposits | 4,138,174 | 4,087,885 | 50,289 | 1.23 | % | ||||||||||
Total deposits | 6,190,772 | 6,035,197 | 155,575 | 2.58 | % | ||||||||||
Total equity | 1,101,245 | 1,086,558 | 14,687 | 1.35 | % | ||||||||||
Total equity - tangible | 799,283 | 783,792 | 15,491 | 1.98 | % | ||||||||||
Common equity | 1,089,760 | 1,075,102 | 14,658 | 1.36 | % | ||||||||||
Common equity - tangible | 787,798 | 772,337 | 15,461 | 2.00 | % | ||||||||||
Book value per common share | 17.42 | 17.20 | 0.22 | 1.28 | % | ||||||||||
Book value per common share - tangible | 12.59 | 12.36 | 0.23 | 1.86 | % | ||||||||||
Daily Average Balances: | |||||||||||||||
Total assets | $ | 8,000,366 | $ | 7,965,438 | $ | 34,928 | 0.44 | % | |||||||
Total assets - tangible | 7,698,310 | 7,661,845 | 36,465 | 0.48 | % | ||||||||||
Earning assets | 7,177,697 | 7,125,742 | 51,955 | 0.73 | % | ||||||||||
Loans (net of unearned income), excluding nonaccrual loans | 5,862,799 | 5,705,832 | 156,967 | 2.75 | % | ||||||||||
Allowance for loan losses | 42,610 | 41,188 | 1,422 | 3.45 | % | ||||||||||
Goodwill and other intangibles | 302,056 | 303,593 | (1,537 | ) | (0.51 | )% | |||||||||
Noninterest bearing deposits | 1,957,887 | 1,961,902 | (4,015 | ) | (0.20 | )% | |||||||||
Interest bearing deposits | 4,102,109 | 4,137,806 | (35,697 | ) | (0.86 | )% | |||||||||
Total deposits | 6,059,996 | 6,099,708 | (39,712 | ) | (0.65 | )% | |||||||||
Total equity | 1,093,490 | 1,087,382 | 6,108 | 0.56 | % | ||||||||||
Total equity - tangible | 791,433 | 783,789 | 7,644 | 0.98 | % | ||||||||||
Common equity | 1,082,324 | 1,076,277 | 6,047 | 0.56 | % | ||||||||||
Common equity - tangible | 780,268 | 772,683 | 7,585 | 0.98 | % | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.11 | % | 0.95 | % | 0.16 | % | 16.84 | % | |||||||
Return on average assets - tangible | 1.22 | % | 1.05 | % | 0.17 | % | 16.19 | % | |||||||
Return on average equity | 8.15 | % | 6.95 | % | 1.20 | % | 17.27 | % | |||||||
Return on average equity - tangible | 11.88 | % | 10.27 | % | 1.61 | % | 15.68 | % | |||||||
Return on average common equity | 8.23 | % | 7.02 | % | 1.21 | % | 17.24 | % | |||||||
Return on average common equity - tangible | 12.05 | % | 10.42 | % | 1.63 | % | 15.64 | % | |||||||
Net interest margin-fully tax equivalent (1) | 3.45 | % | 3.52 | % | (0.07 | )% | (1.99 | )% | |||||||
Net interest margin | 3.41 | % | 3.47 | % | (0.06 | )% | (1.73 | )% | |||||||
Average earning assets/total average assets | 89.72 | % | 89.46 | % | 0.26 | % | 0.29 | % | |||||||
Average loans/average deposits | 96.75 | % | 93.54 | % | 3.21 | % | 3.43 | % | |||||||
Average noninterest deposits/total average deposits | 32.31 | % | 32.16 | % | 0.15 | % | 0.47 | % | |||||||
Allowance for loan losses/period end loans | 0.73 | % | 0.72 | % | 0.01 | % | 1.39 | % | |||||||
Nonperforming assets to period end assets | 0.44 | % | 0.47 | % | (0.03 | )% | (6.38 | )% | |||||||
Period end equity/period end total assets | 13.47 | % | 13.63 | % | (0.16 | )% | (1.17 | )% | |||||||
Efficiency ratio | 66.80 | % | 71.64 | % | (4.84 | )% | (6.76 | )% | |||||||
(1) 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 | ||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||||
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 | $ | 5,862,799 | $ | 64,979 | 4.49 | % | $ | 5,705,832 | $ | 66,061 | 4.61 | % | $ | 4,516,277 | $ | 50,781 | 4.52 | % | ||||||||
Taxable investment securities | 627,338 | 2,843 | 1.81 | % | 666,936 | 2,762 | 1.66 | % | 754,514 | 3,055 | 1.62 | % | ||||||||||||||
Tax-exempt investment securities | 50,485 | 375 | 2.97 | % | 52,199 | 390 | 2.99 | % | 52,979 | 410 | 3.09 | % | ||||||||||||||
Interest-bearing deposits | 450,076 | 887 | 0.80 | % | 352,418 | 487 | 0.55 | % | 265,256 | 330 | 0.50 | % | ||||||||||||||
Loans held for sale | 186,999 | 1,727 | 3.69 | % | 348,357 | 3,028 | 3.48 | % | 75,435 | 693 | 3.67 | % | ||||||||||||||
Total earning assets | 7,177,697 | 70,811 | 4.00 | % | 7,125,742 | 72,728 | 4.06 | % | 5,664,461 | 55,269 | 3.92 | % | ||||||||||||||
Less: allowance for loan losses | (42,610 | ) | (41,188 | ) | (38,555 | ) | ||||||||||||||||||||
Total nonearning assets | 865,279 | 880,884 | 687,332 | |||||||||||||||||||||||
Total assets | $ | 8,000,366 | $ | 7,965,438 | $ | 6,313,238 | ||||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||
Demand and money market | $ | 2,272,911 | $ | 1,865 | 0.33 | % | $ | 2,230,198 | $ | 1,742 | 0.31 | % | $ | 1,782,908 | $ | 1,328 | 0.30 | % | ||||||||
Savings | 320,319 | 757 | 0.96 | % | 316,211 | 728 | 0.92 | % | 300,070 | 700 | 0.94 | % | ||||||||||||||
Certificates of deposit | 1,508,879 | 3,381 | 0.91 | % | 1,591,397 | 3,458 | 0.86 | % | 1,416,629 | 3,185 | 0.90 | % | ||||||||||||||
Total interest-bearing deposits | 4,102,109 | 6,003 | 0.59 | % | 4,137,806 | 5,928 | 0.57 | % | 3,499,607 | 5,213 | 0.60 | % | ||||||||||||||
Borrowings | 723,506 | 3,803 | 2.10 | % | 628,272 | 3,739 | 2.33 | % | 468,798 | 3,185 | 2.69 | % | ||||||||||||||
Total interest-bearing liabilities | 4,825,615 | 9,806 | 0.82 | % | 4,766,078 | 9,667 | 0.81 | % | 3,968,405 | 8,398 | 0.85 | % | ||||||||||||||
Demand deposits | 1,957,887 | 1,961,902 | 1,415,793 | |||||||||||||||||||||||
Other noninterest-bearing liabilities | 123,374 | 150,076 | 98,862 | |||||||||||||||||||||||
Total liabilities | 6,906,876 | 6,878,056 | 5,483,060 | |||||||||||||||||||||||
Shareholders’ equity | 1,093,490 | 1,087,382 | 830,178 | |||||||||||||||||||||||
Total liabilities and equity | $ | 8,000,366 | $ | 7,965,438 | $ | 6,313,238 | ||||||||||||||||||||
Net interest income (tax-equivalent basis) | $ | 61,005 | $ | 63,061 | $ | 46,870 | ||||||||||||||||||||
Reconcilement of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (724 | ) | (910 | ) | (535 | ) | ||||||||||||||||||||
Net interest income (GAAP) | $ | 60,281 | $ | 62,151 | $ | 46,335 | ||||||||||||||||||||
Interest rate spread (1) | 3.18 | % | 3.25 | % | 3.07 | % | ||||||||||||||||||||
Interest expense as a percent of average earning assets | 0.55 | % | 0.54 | % | 0.60 | % | ||||||||||||||||||||
Net interest margin (tax equivalent basis) (2) | 3.45 | % | 3.52 | % | 3.33 | % | ||||||||||||||||||||
Total cost of deposits | 0.40 | % | 0.39 | % | 0.43 | % |
(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) | |||||||||||
March 31, | December 31, | ||||||||||
2017 | 2016 | 2016 | |||||||||
(unaudited) | (unaudited) | (audited) | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 420,192 | $ | 195,161 | $ | 130,967 | |||||
Interest-bearing deposits in financial institutions | 5,335 | 1,006 | 5,581 | ||||||||
Total Cash and Cash Equivalents | 425,527 | 196,167 | 136,548 | ||||||||
Securities available for sale, at fair value | 720,667 | 821,551 | 812,974 | ||||||||
Securities held to maturity, at amortized cost | 65,117 | 66,921 | 66,490 | ||||||||
Federal Home Loan Bank stock, at amortized cost | 36,402 | 23,903 | 35,937 | ||||||||
Total Securities | 822,186 | 912,375 | 915,401 | ||||||||
Mortgage loans held for sale | 214,047 | 97,491 | 314,117 | ||||||||
Loans, net of unearned income and deferred costs: | |||||||||||
Real estate-residential 1-4 family | 1,215,278 | 988,432 | 1,215,823 | ||||||||
Real estate-commercial | 2,269,233 | 1,762,312 | 2,251,312 | ||||||||
Real estate-construction and development | 898,540 | 635,992 | 826,027 | ||||||||
Real estate-multi-family | 236,782 | 160,246 | 222,791 | ||||||||
Commercial | 1,086,273 | 852,005 | 1,089,539 | ||||||||
Consumer and other loans | 206,974 | 153,273 | 201,729 | ||||||||
Loans, net of unearned income and deferred costs | 5,913,080 | 4,552,260 | 5,807,221 | ||||||||
Less: allowance for loan losses | (43,195 | ) | (37,760 | ) | (42,001 | ) | |||||
Net Loans | 5,869,885 | 4,514,500 | 5,765,220 | ||||||||
Premises and equipment, net | 198,664 | 178,154 | 198,568 | ||||||||
Goodwill | 264,910 | 157,659 | 264,910 | ||||||||
Other intangible assets, net | 37,052 | 29,286 | 37,856 | ||||||||
Bank-owned life insurance policies | 190,917 | 150,623 | 189,499 | ||||||||
Other assets | 151,598 | 128,914 | 151,796 | ||||||||
TOTAL ASSETS | $ | 8,174,786 | $ | 6,365,169 | $ | 7,973,915 | |||||
LIABILITIES AND EQUITY | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | 2,052,598 | $ | 1,449,660 | $ | 1,947,312 | |||||
Interest-bearing: | |||||||||||
Demand and money market accounts | 2,270,025 | 1,769,414 | 2,263,894 | ||||||||
Savings | 320,104 | 302,373 | 319,611 | ||||||||
Certificates of deposit | 1,548,045 | 1,433,679 | 1,504,380 | ||||||||
Total Deposits | 6,190,772 | 4,955,126 | 6,035,197 | ||||||||
Advances from the Federal Home Loan Bank | 687,366 | 428,940 | 687,511 | ||||||||
Repurchase agreements and other borrowings | 35,318 | 40,235 | 32,540 | ||||||||
Total Borrowings | 722,684 | 469,175 | 720,051 | ||||||||
Other liabilities | 160,085 | 104,865 | 132,109 | ||||||||
TOTAL LIABILITIES | 7,073,541 | 5,529,166 | 6,887,357 | ||||||||
Preferred stock | |||||||||||
Authorized and unissued shares - 2,000,000 | — | — | — | ||||||||
Common stock, $1.667 par value | |||||||||||
Authorized shares - 90,000,000 | |||||||||||
62,571,739; 51,680,059; and 62,492,168 shares issued at | |||||||||||
March 31, 2017 and 2016 and December 31, 2016, respectively | 104,307 | 86,151 | 104,174 | ||||||||
Capital surplus | 746,289 | 536,294 | 745,411 | ||||||||
Retained earnings | 243,337 | 204,413 | 229,503 | ||||||||
Common stock issued to deferred compensation trust, at cost | |||||||||||
693,654; 651,379; and 692,431 shares at | |||||||||||
March 31, 2017 and 2016 and December 31, 2016, respectively | (11,294 | ) | (10,288 | ) | (11,168 | ) | |||||
Deferred compensation trust | 11,294 | 10,288 | 11,168 | ||||||||
Accumulated other comprehensive income (loss) | (4,173 | ) | 17 | (3,986 | ) | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,089,760 | 826,875 | 1,075,102 | ||||||||
Noncontrolling interest | 11,485 | 9,128 | 11,456 | ||||||||
TOTAL EQUITY | 1,101,245 | 836,003 | 1,086,558 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 8,174,786 | $ | 6,365,169 | $ | 7,973,915 |
TOWNEBANK | |||||||
Consolidated Statements of Income | |||||||
(dollars in thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
(unaudited) | (unaudited) | ||||||
INTEREST INCOME: | |||||||
Loans, including fees | $ | 64,255 | $ | 50,247 | |||
Investment securities | 3,218 | 3,464 | |||||
Interest-bearing deposits in financial institutions and federal funds sold | 887 | 330 | |||||
Mortgage loans held for sale | 1,727 | 693 | |||||
Total interest income | 70,087 | 54,734 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 6,003 | 5,213 | |||||
Advances from the Federal Home Loan Bank | 3,772 | 3,163 | |||||
Repurchase agreements and other borrowings, net of capitalized interest | 31 | 22 | |||||
Total interest expense | 9,806 | 8,398 | |||||
Net interest income | 60,281 | 46,336 | |||||
PROVISION FOR LOAN LOSSES | 2,541 | (259 | ) | ||||
Net interest income after provision for loan losses | 57,740 | 46,595 | |||||
NONINTEREST INCOME: | |||||||
Residential mortgage banking income, net | 17,632 | 7,118 | |||||
Insurance commissions and other title fees and income, net | 14,800 | 14,033 | |||||
Real estate brokerage and property management income, net | 4,993 | 4,827 | |||||
Service charges on deposit accounts | 2,472 | 2,176 | |||||
Credit card merchant fees, net | 1,118 | 895 | |||||
Other income | 3,871 | 3,366 | |||||
Total noninterest income | 44,886 | 32,415 | |||||
NONINTEREST EXPENSE: | |||||||
Salaries and employee benefits | 40,208 | 30,187 | |||||
Occupancy | 6,684 | 5,017 | |||||
Furniture and equipment | 3,343 | 2,357 | |||||
Other expenses | 20,013 | 14,600 | |||||
Total noninterest expense | 70,248 | 52,161 | |||||
Income before income tax expense & noncontrolling interest | 32,378 | 26,849 | |||||
Provision for income tax expense | 9,386 | 8,188 | |||||
Net income | $ | 22,992 | $ | 18,661 | |||
Net income attributable to noncontrolling interest | (1,024 | ) | (842 | ) | |||
Net income attributable to TowneBank | $ | 21,968 | $ | 17,819 | |||
Net income available to common shareholders | $ | 21,968 | $ | 17,819 | |||
Per common share information | |||||||
Basic earnings | $ | 0.35 | $ | 0.35 | |||
Diluted earnings | $ | 0.35 | $ | 0.35 | |||
Cash dividends declared | $ | 0.13 | $ | 0.12 |
TOWNEBANK | |||||||
Consolidated Statements of Comprehensive Income | |||||||
(dollars in thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
(unaudited) | (unaudited) | ||||||
Net income | $ | 22,992 | $ | 18,661 | |||
Other comprehensive income (loss) | |||||||
Unrealized gains on securities | |||||||
Unrealized holding gains arising during the period | 162 | 4,480 | |||||
Deferred tax expense | (57 | ) | (1,568 | ) | |||
Net unrealized gains | 105 | 2,912 | |||||
Pension and postretirement benefit plans | |||||||
Actuarial gain (loss) | (538 | ) | 109 | ||||
Deferred tax benefit (expense) | 188 | (38 | ) | ||||
Amortization of prior service costs | 51 | 38 | |||||
Deferred tax expense | (18 | ) | (13 | ) | |||
Amortization of actuarial loss | 39 | 4 | |||||
Deferred tax expense | (14 | ) | (1 | ) | |||
Change in retirement plans, net of tax | (292 | ) | 99 | ||||
Other comprehensive income (loss), net of tax | (187 | ) | 3,011 | ||||
Comprehensive income | $ | 22,805 | $ | 21,672 |
TOWNEBANK | |||||||||||||||||||
Consolidated Balance Sheets - Five Quarter Trend | |||||||||||||||||||
(dollars in thousands, except share data) | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
(unaudited) | (audited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 420,192 | $ | 130,967 | $ | 147,887 | $ | 188,183 | $ | 195,161 | |||||||||
Interest-bearing deposits in financial institutions | 5,335 | 5,581 | 6,891 | 33,777 | 1,006 | ||||||||||||||
Federal funds sold | — | — | — | 14 | — | ||||||||||||||
Total Cash and Cash Equivalents | 425,527 | 136,548 | 154,778 | 221,974 | 196,167 | ||||||||||||||
Securities available for sale, at fair value | 720,667 | 812,974 | 704,418 | 812,375 | 821,551 | ||||||||||||||
Securities held to maturity, at amortized cost | 65,117 | 66,490 | 70,304 | 65,728 | 66,921 | ||||||||||||||
Federal Home Loan Bank stock, at amortized cost | 36,402 | 35,937 | 24,888 | 28,008 | 23,903 | ||||||||||||||
Total Securities | 822,186 | 915,401 | 799,610 | 906,111 | 912,375 | ||||||||||||||
Mortgage loans held for sale | 214,047 | 314,117 | 439,608 | 474,978 | 97,491 | ||||||||||||||
Loans, net of unearned income and deferred costs: | 5,913,080 | 5,807,221 | 5,651,642 | 5,559,949 | 4,552,260 | ||||||||||||||
Less: allowance for loan losses | (43,195 | ) | (42,001 | ) | (40,655 | ) | (39,618 | ) | (37,760 | ) | |||||||||
Net Loans | 5,869,885 | 5,765,220 | 5,610,987 | 5,520,331 | 4,514,500 | ||||||||||||||
Premises and equipment, net | 198,664 | 198,568 | 202,955 | 202,333 | 178,154 | ||||||||||||||
Goodwill | 264,910 | 264,910 | 264,578 | 257,485 | 157,659 | ||||||||||||||
Other intangible assets, net | 37,052 | 37,856 | 39,747 | 41,515 | 29,286 | ||||||||||||||
Bank-owned life insurance policies | 190,917 | 189,499 | 163,385 | 164,933 | 150,623 | ||||||||||||||
Other assets | 151,598 | 151,796 | 154,494 | 151,081 | 128,914 | ||||||||||||||
TOTAL ASSETS | $ | 8,174,786 | $ | 7,973,915 | $ | 7,830,142 | $ | 7,940,741 | $ | 6,365,169 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 2,052,598 | $ | 1,947,312 | $ | 1,974,395 | $ | 1,950,816 | $ | 1,449,660 | |||||||||
Interest-bearing: | |||||||||||||||||||
Demand and money market accounts | 2,270,025 | 2,263,894 | 2,207,962 | 2,174,154 | 1,769,414 | ||||||||||||||
Savings | 320,104 | 319,611 | 315,477 | 317,071 | 302,373 | ||||||||||||||
Certificates of deposit | 1,548,045 | 1,504,380 | 1,649,113 | 1,744,238 | 1,433,679 | ||||||||||||||
Total Deposits | 6,190,772 | 6,035,197 | 6,146,947 | 6,186,279 | 4,955,126 | ||||||||||||||
Advances from the Federal Home Loan Bank | 687,366 | 687,511 | 427,655 | 500,798 | 428,940 | ||||||||||||||
Repurchase agreements and other borrowings | 35,318 | 32,540 | 31,927 | 44,008 | 40,235 | ||||||||||||||
Total Borrowings | 722,684 | 720,051 | 459,582 | 544,806 | 469,175 | ||||||||||||||
Other liabilities | 160,085 | 132,109 | 144,735 | 148,108 | 104,865 | ||||||||||||||
TOTAL LIABILITIES | 7,073,541 | 6,887,357 | 6,751,264 | 6,879,193 | 5,529,166 | ||||||||||||||
Preferred stock | |||||||||||||||||||
Authorized shares - 2,000,000 | — | — | — | — | — | ||||||||||||||
Common stock, $1.667 par value | 104,307 | 104,174 | 104,000 | 103,963 | 86,151 | ||||||||||||||
Capital surplus | 746,289 | 745,411 | 743,223 | 742,228 | 536,294 | ||||||||||||||
Retained earnings | 243,337 | 229,503 | 218,631 | 202,565 | 204,413 | ||||||||||||||
Common stock issued to deferred compensation trust, at cost | (11,294 | ) | (11,168 | ) | (10,969 | ) | (10,785 | ) | (10,288 | ) | |||||||||
Deferred compensation trust | 11,294 | 11,168 | 10,969 | 10,785 | 10,288 | ||||||||||||||
Accumulated other comprehensive income (loss) | (4,173 | ) | (3,986 | ) | 1,339 | 1,604 | 17 | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,089,760 | 1,075,102 | 1,067,193 | 1,050,360 | 826,875 | ||||||||||||||
Noncontrolling interest | 11,485 | 11,456 | 11,685 | 11,188 | 9,128 | ||||||||||||||
TOTAL EQUITY | 1,101,245 | 1,086,558 | 1,078,878 | 1,061,548 | 836,003 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 8,174,786 | $ | 7,973,915 | $ | 7,830,142 | $ | 7,940,741 | $ | 6,365,169 |
TOWNEBANK | |||||||||||||||||||
Consolidated Statements of Income - Five Quarter Trend (unaudited) | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Loans, including fees | $ | 64,255 | $ | 65,151 | $ | 64,623 | $ | 51,444 | $ | 50,247 | |||||||||
Investment securities | 3,218 | 3,152 | 3,099 | 3,139 | 3,464 | ||||||||||||||
Interest-bearing deposits in financial institutions and federal funds sold | 887 | 487 | (36 | ) | 364 | 330 | |||||||||||||
Mortgage loans held for sale | 1,727 | 3,028 | 4,137 | 1,294 | 693 | ||||||||||||||
Total Interest Income | 70,087 | 71,818 | 71,823 | 56,241 | 54,734 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Deposits | 6,003 | 5,928 | 5,909 | 5,267 | 5,213 | ||||||||||||||
Advances from the Federal Home Loan Bank | 3,772 | 3,546 | 3,276 | 3,158 | 3,163 | ||||||||||||||
Repurchase agreements and other borrowings | 31 | 193 | 33 | 32 | 22 | ||||||||||||||
Total Interest Expense | 9,806 | 9,667 | 9,218 | 8,457 | 8,398 | ||||||||||||||
Net Interest Income | 60,281 | 62,151 | 62,605 | 47,784 | 46,336 | ||||||||||||||
PROVISION FOR LOAN LOSSES | 2,541 | 1,831 | 1,686 | 2,099 | (259 | ) | |||||||||||||
Net Interest Income after Provision for Loan Losses | 57,740 | 60,320 | 60,919 | 45,685 | 46,595 | ||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||
Residential mortgage banking income, net | 17,632 | 18,096 | 21,430 | 12,148 | 7,118 | ||||||||||||||
Insurance commissions and other title fees and income, net | 14,800 | 9,823 | 11,258 | 11,627 | 14,033 | ||||||||||||||
Real estate brokerage and property management income, net | 4,993 | 2,925 | 6,647 | 6,116 | 4,827 | ||||||||||||||
Service charges on deposit accounts | 2,472 | 2,535 | 2,552 | 2,284 | 2,176 | ||||||||||||||
Credit card merchant fees, net | 1,118 | 1,135 | 1,365 | 1,113 | 895 | ||||||||||||||
Other income | 3,871 | 4,998 | 3,569 | 3,180 | 3,366 | ||||||||||||||
Net gain on investment securities | — | 6 | — | — | — | ||||||||||||||
Total Noninterest Income | 44,886 | 39,518 | 46,821 | 36,468 | 32,415 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 40,208 | 43,071 | 40,497 | 30,093 | 30,187 | ||||||||||||||
Occupancy expense | 6,684 | 6,885 | 6,656 | 5,157 | 5,017 | ||||||||||||||
Furniture and equipment | 3,343 | 3,378 | 3,199 | 2,381 | 2,357 | ||||||||||||||
Other expenses | 20,013 | 19,500 | 20,581 | 34,268 | 14,600 | ||||||||||||||
Total Noninterest Expense | 70,248 | 72,834 | 70,933 | 71,899 | 52,161 | ||||||||||||||
Income before income tax expense and noncontrolling interest | 32,378 | 27,004 | 36,807 | 10,254 | 26,849 | ||||||||||||||
Provision for income tax expense | 9,386 | 7,160 | 10,974 | 2,375 | 8,188 | ||||||||||||||
Net income | 22,992 | 19,844 | 25,833 | 7,879 | 18,661 | ||||||||||||||
Net income attributable to noncontrolling interest | (1,024 | ) | (848 | ) | (1,657 | ) | (1,620 | ) | (842 | ) | |||||||||
Net income attributable to TowneBank | $ | 21,968 | $ | 18,996 | $ | 24,176 | $ | 6,259 | $ | 17,819 | |||||||||
Net income available to common shareholders | $ | 21,968 | $ | 18,996 | $ | 24,176 | $ | 6,259 | $ | 17,819 | |||||||||
Per common share information | |||||||||||||||||||
Basic earnings | $ | 0.35 | $ | 0.31 | $ | 0.39 | $ | 0.12 | $ | 0.35 | |||||||||
Diluted earnings | $ | 0.35 | $ | 0.31 | $ | 0.39 | $ | 0.12 | $ | 0.35 | |||||||||
Basic weighted average shares outstanding | 62,075,983 | 61,963,948 | 61,908,316 | 51,994,473 | 51,290,010 | ||||||||||||||
Diluted weighted average shares outstanding | 62,262,789 | 62,175,705 | 62,067,832 | 52,116,772 | 51,392,857 | ||||||||||||||
Cash dividends declared | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.12 |
TOWNEBANK | |||||||||||||||||||||||||
Banking Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||
Three Months Ended | March 31, 2017 | March 31, 2017 | |||||||||||||||||||||||
March 31, | December 31, | March 31, 2016 | December 31, 2016 | ||||||||||||||||||||||
2017 | 2016 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Revenue | |||||||||||||||||||||||||
Net interest income | $ | 58,444 | $ | 45,823 | $ | 59,482 | $ | 12,621 | 27.54 | % | $ | (1,038 | ) | (1.75 | )% | ||||||||||
Service charges on deposit accounts | 2,472 | 2,176 | 2,535 | 296 | 13.60 | % | (63 | ) | (2.49 | )% | |||||||||||||||
Credit card merchant fees | 1,118 | 895 | 1,135 | 223 | 24.92 | % | (17 | ) | (1.50 | )% | |||||||||||||||
Other income | 3,106 | 2,530 | 4,125 | 576 | 22.77 | % | (1,019 | ) | (24.70 | )% | |||||||||||||||
Net gain on investment securities | — | — | 6 | — | — | (6 | ) | (100.00 | )% | ||||||||||||||||
Total noninterest income | 6,696 | 5,601 | 7,801 | 1,095 | 19.55 | % | (1,105 | ) | (14.16 | )% | |||||||||||||||
Total revenue | 65,140 | 51,424 | 67,283 | 13,716 | 26.67 | % | (2,143 | ) | (3.19 | )% | |||||||||||||||
Provision for loan losses | 2,541 | (259 | ) | 1,801 | 2,800 | N/M | 740 | 41.09 | % | ||||||||||||||||
Expenses | |||||||||||||||||||||||||
Salaries and employee benefits | 20,341 | 17,513 | 23,770 | 2,828 | 16.15 | % | (3,429 | ) | (14.43 | )% | |||||||||||||||
Occupancy expense | 4,128 | 3,475 | 4,349 | 653 | 18.79 | % | (221 | ) | (5.08 | )% | |||||||||||||||
Furniture and equipment | 2,274 | 1,865 | 2,374 | 409 | 21.93 | % | (100 | ) | (4.21 | )% | |||||||||||||||
Advertising and marketing | 1,041 | 874 | 749 | 167 | 19.11 | % | 292 | 38.99 | % | ||||||||||||||||
Charitable contributions | 1,313 | 967 | 1,011 | 346 | 35.78 | % | 302 | 29.87 | % | ||||||||||||||||
Outside processing | 1,154 | 930 | 1,387 | 224 | 24.09 | % | (233 | ) | (16.80 | )% | |||||||||||||||
Foreclosed property expenses | 118 | 112 | 607 | 6 | 5.36 | % | (489 | ) | (80.56 | )% | |||||||||||||||
FDIC and other insurance | 987 | 1,050 | 848 | (63 | ) | (6.00 | )% | 139 | 16.39 | % | |||||||||||||||
Professional fees | 1,280 | 1,049 | 1,181 | 231 | 22.02 | % | 99 | 8.38 | % | ||||||||||||||||
Telephone and postage | 904 | 744 | 997 | 160 | 21.51 | % | (93 | ) | (9.33 | )% | |||||||||||||||
Other expenses | 4,809 | 3,602 | 4,242 | 1,207 | 33.51 | % | 567 | 13.37 | % | ||||||||||||||||
Total expenses | 38,349 | 32,181 | 41,515 | 6,168 | 19.17 | % | (3,166 | ) | (7.63 | )% | |||||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 24,250 | 19,502 | 23,967 | 4,748 | 24.35 | % | 283 | 1.18 | % | ||||||||||||||||
Corporate allocation | 484 | 360 | 519 | $ | 124 | 34.44 | % | (35 | ) | (6.74 | )% | ||||||||||||||
Income before income tax provision and noncontrolling interest | 24,734 | 19,862 | 24,486 | 4,872 | 24.53 | % | 248 | 1.01 | % | ||||||||||||||||
Provision for income tax expense | 6,765 | 5,729 | 6,546 | 1,036 | 18.08 | % | 219 | 3.35 | % | ||||||||||||||||
Net income | 17,969 | 14,133 | 17,940 | 3,836 | 27.14 | % | 29 | 0.16 | % | ||||||||||||||||
Noncontrolling interest | (2 | ) | — | (9 | ) | (2 | ) | N/M | 7 | (77.78 | )% | ||||||||||||||
Net income attributable to TowneBank | $ | 17,967 | $ | 14,133 | $ | 17,931 | $ | 3,834 | 27.13 | % | $ | 36 | 0.20 | % | |||||||||||
Efficiency ratio | 58.87 | % | 62.58 | % | 61.71 | % | (3.71 | )% | (5.93 | )% | (2.84 | )% | (4.60 | )% |
TOWNEBANK | |||||||||||||||||||||||||
Realty Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||
Three Months Ended | March 31, 2017 | March 31, 2017 | |||||||||||||||||||||||
March 31, | December 31, | March 31, 2016 | December 31, 2016 | ||||||||||||||||||||||
2017 | 2016 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Revenue | |||||||||||||||||||||||||
Residential mortgage brokerage income, net | $ | 17,775 | $ | 7,310 | $ | 18,378 | $ | 10,465 | 143.16 | % | $ | (603 | ) | (3.28 | )% | ||||||||||
Real estate brokerage income, net | 1,460 | 1,412 | 1,761 | 48 | 3.40 | % | (301 | ) | (17.09 | )% | |||||||||||||||
Title insurance and settlement fees | 355 | 350 | 422 | 5 | 1.43 | % | (67 | ) | (15.88 | )% | |||||||||||||||
Property management fees, net | 3,533 | 3,415 | 1,163 | 118 | 3.46 | % | 2,370 | 203.78 | % | ||||||||||||||||
Income from unconsolidated subsidiary | 124 | 165 | 218 | (41 | ) | (24.85 | )% | (94 | ) | (43.12 | )% | ||||||||||||||
Net interest and other income | 2,203 | 762 | 2,959 | 1,441 | 189.11 | % | (756 | ) | (25.55 | )% | |||||||||||||||
Total revenue | 25,450 | 13,414 | 24,901 | 12,036 | 89.73 | % | 549 | 2.20 | % | ||||||||||||||||
Expenses | |||||||||||||||||||||||||
Salaries and employee benefits | 13,708 | 6,706 | 13,551 | 7,002 | 104.41 | % | 157 | 1.16 | % | ||||||||||||||||
Occupancy expense | 1,964 | 1,013 | 2,002 | 951 | 93.88 | % | (38 | ) | (1.90 | )% | |||||||||||||||
Furniture and equipment | 869 | 268 | 807 | 601 | 224.25 | % | 62 | 7.68 | % | ||||||||||||||||
Amortization of intangible assets | 559 | 353 | 565 | 206 | 58.36 | % | (6 | ) | (1.06 | )% | |||||||||||||||
Other expenses | 5,978 | 2,844 | 5,909 | 3,134 | 110.20 | % | 69 | 1.17 | % | ||||||||||||||||
Total expenses | 23,078 | 11,184 | 22,834 | 11,894 | 106.35 | % | 244 | 1.07 | % | ||||||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 2,372 | 2,230 | 2,067 | 142 | 6.37 | % | 305 | 14.76 | % | ||||||||||||||||
Corporate allocation | (307 | ) | (170 | ) | (364 | ) | (137 | ) | 80.59 | % | 57 | (15.66 | )% | ||||||||||||
Income before income tax provision and noncontrolling interest | 2,065 | 2,060 | 1,703 | 5 | 0.24 | % | 362 | 21.26 | % | ||||||||||||||||
Provision for income tax expense | 627 | 659 | 355 | (32 | ) | (4.86 | )% | 272 | 76.62 | % | |||||||||||||||
Net income | 1,438 | 1,401 | 1,348 | 37 | 2.64 | % | 90 | 6.68 | % | ||||||||||||||||
Noncontrolling interest | (512 | ) | (368 | ) | (675 | ) | (144 | ) | 39.13 | % | 163 | (24.15 | )% | ||||||||||||
Net income attributable to TowneBank | $ | 926 | $ | 1,033 | $ | 673 | $ | (107 | ) | (10.36 | )% | $ | 253 | 37.59 | % | ||||||||||
Efficiency ratio | 90.68 | % | 83.38 | % | 91.70 | % | 7.30 | % | 8.76 | % | (1.02 | )% | (1.11 | )% |
TOWNEBANK | |||||||||||||||||||||||||
Insurance Segment Financial Information | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||
Three Months Ended | March 31, 2017 | March 31, 2017 | |||||||||||||||||||||||
March 31, | December 31, | March 31, 2016 | December 31, 2016 | ||||||||||||||||||||||
2017 | 2016 | 2016 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Commission and fee income | |||||||||||||||||||||||||
Property and casualty | $ | 8,457 | $ | 8,086 | $ | 7,614 | $ | 371 | 4.59 | % | $ | 843 | 11.07 | % | |||||||||||
Employee benefits | 2,974 | 2,898 | 2,930 | 76 | 2.62 | % | 44 | 1.50 | % | ||||||||||||||||
Travel insurance | 1,627 | 1,456 | 828 | 171 | 11.74 | % | 799 | 96.50 | % | ||||||||||||||||
Specialized benefit services | 165 | 153 | 164 | 12 | 7.84 | % | 1 | 0.61 | % | ||||||||||||||||
Total commissions and fees | 13,223 | 12,593 | 11,536 | 630 | 5.00 | % | 1,687 | 14.62 | % | ||||||||||||||||
Contingency and bonus revenue | 3,539 | 3,411 | 67 | 128 | 3.75 | % | 3,472 | N/M | |||||||||||||||||
Other income | 88 | 77 | 71 | 11 | 14.29 | % | 17 | 23.94 | % | ||||||||||||||||
Total revenue | 16,850 | 16,081 | 11,674 | 769 | 4.78 | % | 5,176 | 44.34 | % | ||||||||||||||||
Employee commission expense | 2,273 | 2,168 | 2,221 | 105 | 4.84 | % | 52 | 2.34 | % | ||||||||||||||||
Revenue, net of commission expense | 14,577 | 13,913 | 9,453 | 664 | 4.77 | % | 5,124 | 54.21 | % | ||||||||||||||||
Salaries and employee benefits | 6,159 | 5,968 | 5,749 | 191 | 3.20 | % | 410 | 7.13 | % | ||||||||||||||||
Occupancy expense | 592 | 529 | 535 | 63 | 11.91 | % | 57 | 10.65 | % | ||||||||||||||||
Furniture and equipment | 200 | 224 | 196 | (24 | ) | (10.71 | )% | 4 | 2.04 | % | |||||||||||||||
Amortization of intangible assets | 697 | 685 | 701 | 12 | 1.75 | % | (4 | ) | (0.57 | )% | |||||||||||||||
Other expenses | 1,173 | 1,390 | 1,304 | (217 | ) | (15.61 | )% | (131 | ) | (10.05 | )% | ||||||||||||||
Total operating expenses | 8,821 | 8,796 | 8,485 | 25 | 0.28 | % | 336 | 3.96 | % | ||||||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 5,756 | 5,117 | 968 | 639 | 12.49 | % | 4,788 | 494.63 | % | ||||||||||||||||
Corporate allocation | (177 | ) | (190 | ) | (155 | ) | 13 | (6.84 | )% | (22 | ) | 14.19 | % | ||||||||||||
Income before income tax provision and noncontrolling interest | 5,579 | 4,927 | 813 | 652 | 13.23 | % | 4,766 | 586.22 | % | ||||||||||||||||
Provision for income tax expense | 1,994 | 1,800 | 259 | 194 | 10.78 | % | 1,735 | 669.88 | % | ||||||||||||||||
Net income | 3,585 | 3,127 | 554 | 458 | 14.65 | % | 3,031 | 547.11 | % | ||||||||||||||||
Noncontrolling interest | (510 | ) | (474 | ) | (162 | ) | (36 | ) | 7.59 | % | (348 | ) | 214.81 | % | |||||||||||
Net income attributable to TowneBank | $ | 3,075 | $ | 2,653 | $ | 392 | $ | 422 | 15.91 | % | $ | 2,683 | 684.44 | % | |||||||||||
Efficiency ratio | 60.51 | % | 63.22 | % | 89.76 | % | (2.71 | )% | (4.29 | )% | (29.25 | )% | (32.59 | )% |
TOWNEBANK | |||||||||||
Reconcilement of Non-GAAP Financial Measures: | |||||||||||
Three Months Ended | |||||||||||
March 31, | March 31, | December 31, | |||||||||
2017 | 2016 | 2016 | |||||||||
Return on average assets (GAAP basis) | 1.11 | % | 1.14 | % | 0.95 | % | |||||
Impact of excluding average goodwill and other intangibles and amortization | 0.11 | % | 0.07 | % | 0.10 | % | |||||
Return on average tangible assets (Non-GAAP) | 1.22 | % | 1.21 | % | 1.05 | % | |||||
Return on average equity (GAAP basis) | 8.15 | % | 8.63 | % | 6.95 | % | |||||
Impact of excluding average goodwill and other intangibles and amortization | 3.73 | % | 2.93 | % | 3.32 | % | |||||
Return on average tangible equity (Non-GAAP) | 11.88 | % | 11.56 | % | 10.27 | % | |||||
Return on average common equity (GAAP basis) | 8.23 | % | 8.73 | % | 7.02 | % | |||||
Impact of excluding average goodwill and other intangibles and amortization | 3.82 | % | 2.99 | % | 3.40 | % | |||||
Return on average tangible common equity (Non-GAAP) | 12.05 | % | 11.72 | % | 10.42 | % | |||||
Book value (GAAP basis) | $ | 17.42 | $ | 16.00 | $ | 17.20 | |||||
Impact of excluding average goodwill and other intangibles and amortization | (4.83 | ) | (3.62 | ) | (4.84 | ) | |||||
Tangible book value | $ | 12.59 | $ | 12.38 | $ | 12.36 | |||||