SUFFOLK, Va., Oct. 25, 2013 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the "Bank") (Nasdaq:TOWN) reported earnings of $10.42 million for the quarter ended September 30, 2013, an 11.42% increase, or $1.07 million, over the $9.35 million reported for the comparative period in 2012. Earnings for the year-to-date period increased 13.33% to $32.09 million as compared to the $28.31 million earned in the same period last year.
Net income available to common shareholders increased 13.55% to $9.08 million after preferred dividend payments of $1.34 million. Fully diluted earnings per share increased 7.69% to $0.28 per share compared to $0.26 per share for the comparative period of 2012. For the nine-month period ended September 30, 2013, fully diluted earnings per share increased 17.11% to $0.89 from $0.76 in the comparative prior year period.
The Bank's common dividend was $0.10 per share for the quarter with the common dividend totaling $3.53 million. The current dividend represents an increase of 25.0% over the dividend paid during the same quarter of 2012.
Earnings Highlights
Net interest income was $36.15 million, an $832,000, or 2.25%, decrease from the third quarter of 2012. The reduction in net interest income was primarily driven by lower yields on the Bank's earning assets and was partially offset by continued reductions in funding costs. The Bank's loan portfolio ended the period at $3.21 billion representing an increase of 5.88%, or $178.06 million. The Bank's net interest margin on a fully tax equivalent basis decreased to 3.53%, down from 3.95% in the same period in 2012, and 3.67% in the second quarter of 2013. The declines in net interest margin are primarily due to yield declines on earning assets and are consistent with the continued low interest rate environment.
Noninterest income, excluding gains or losses on investment securities, increased by $1.31 million, or 6.06%, to $22.99 million for the third quarter of 2013, compared to the third quarter of 2012. The majority of the increase is attributable to insurance commissions, which increased $1.50 million or 25.07%, while residential mortgage brokerage income declined due to a combination of lower production volumes related to rising rates and lower margins.
Noninterest expense increased by $3.15 million, or 7.82%, compared to the comparative quarter of 2012. A significant portion of the increase from the comparative period in 2012 is related to expansions of our mortgage operations into Pennsylvania and acquisition of two insurance agencies in July 2013 and one agency in December 2012.
Balance Sheet
At September 30, 2013, total Bank assets reached $4.57 billion, an increase of $252.60 million, or 5.85%, over September 30, 2012. The Bank's loan portfolio ended the period at $3.21 billion representing an increase of 5.88%, or $178.06 million, from the prior year. The loan portfolio has grown moderately during the current year as loans increased $74.70 million, or 2.38%, since December 31, 2012.
Total deposits increased to $3.48 billion, up $176.33 million, or 5.34%, from September 30, 2012. Total deposits increased $101.41 million, or 3.0%, from December 31, 2012. The Bank saw continued growth in noninterest bearing demand deposits, which ended the quarter at $1.06 billion, a 10.74% increase from September 30, 2012. Noninterest deposits represented 30.40% of total deposits at September 30, 2013.
Capital Strength
The Bank's total equity at September 30, 2013 rose to $577.41 million, an increase of $23.80 million, or 4.30%, from September 30, 2012. Common equity increased 19.58%, or $80.70 million, as the Bank's 8% Series A Preferred Stock mandatorily converted on September 1, 2013 into 3.19 million shares of TowneBank common stock reflecting a conversion price of $18.02 per share of common stock. Total risk-based capital remained strong as total risk-based capital, Tier 1 capital, Tier 1 leverage ratios, and Tier 1 common capital ratios were 14.11%, 13.02%, 10.28%, 10.62%, respectively. All ratios exceed the current regulatory standards for well capitalized status.
Credit Quality
The Bank's asset quality continued to improve as nonperforming assets totaled $55.60 million, or 1.22%, of Bank assets at September 30, 2013, as compared to $82.43 million, or 1.91%, at September 30, 2012, and $59.34 million, or 1.29%, at June 30, 2013. At September 30, 2013, nonperforming loans were $13.68 million, or 0.43% of total period-end loans, from $51.52 million, or 1.70%, at September 30, 2012 30, 2012, and $11.75 million, or 0.37%, at June 30, 2013.
The provision for loan losses decreased $4.65 million compared to the third quarter of 2012. The reduction in provision expense in the current year is a result of consistent improvements in credit quality, combined with a reduction in historical loss ratios and healthier economic conditions. Net charge-offs were $804,000 in the third quarter of 2013 compared to $6.01 million in the comparative period of 2012 and $1.41 million in the linked quarter.
| Asset Quality Indicators | |||||
| (in thousands) | 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 |
| Nonperforming loans | $ 13,683 | 11,746 | $ 17,389 | $ 40,691 | $ 51,519 |
| Foreclosed property | 41,914 | 47,596 | 46,622 | 30,297 | 30,910 |
| Total nonperforming assets | $ 55,597 | $ 59,342 | $ 64,011 | $ 70,988 | $ 82,429 |
| Quarterly net loans charged off | $ 804 | $ 1,410 | $ 3,349 | $ 1,868 | $ 6,010 |
| Year-to-date net loans charged off | $ 5,563 | $ 4,759 | $ 3,349 | $ 15,468 | $ 13,600 |
"We are pleased to report another quarter of solid earnings performance despite the current sluggish level of economic activity throughout the region, state, and country. We continue to see improved credit quality metrics, which has driven our growth in earnings and allowed us to increase our common stock dividend by 25% year-over-year," said G. Robert Aston, Jr., Chairman and Chief Executive Officer.
As one of the top community banks in Virginia and North Carolina, TowneBank operates 27 banking offices serving Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, Virginia Beach, Williamsburg, James City County and York County in Virginia along with Moyock, Grandy, Camden, Southern Shores, Corolla and Kill Devil Hills 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, TFA Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Prudential Towne Realty, Towne 1031 Exchange, LLC, and Corolla Classic Vacations. 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 $4.57 billion as of September 30, 2013, TowneBank is one of the largest banks headquartered in Virginia.
Forward-Looking Statements:
This release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; changes in the legislative or regulatory environment, including changes in accounting standards, may adversely affect our business; costs or difficulties related to the integration of the business and the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions, changes in the securities market and changes in our local economy with regards to our market area and its heavy concentration of U. S. military bases and related personnel. We assume no obligation to update information contained in this release.
| Selected Financial Highlights (unaudited) | ||||
| TOWNEBANK | ||||
| September 30, 2013 | ||||
| (dollars in thousands) | ||||
| Increase/ | % Increase/ | |||
| Three Months Ended September 30, | 2013 | 2012 | (Decrease) | (Decrease) |
| Results of Operations: | ||||
| Net interest income | $ 36,152 | $ 36,984 | $(832) | (2.25)% |
| Noninterest income (1) | 22,987 | 21,674 | 1,313 | 6.06% |
| Gain (loss) on investment securities | 150 | 508 | (358) | (70.47)% |
| Noninterest expenses | 43,379 | 40,231 | 3,148 | 7.82% |
| Provision for loan losses | 328 | 4,977 | (4,649) | (93.41)% |
| Income before income tax and noncontrolling interest | 15,583 | 13,958 | 1,625 | 11.64% |
| Provision for income tax expense | 4,407 | 4,063 | 344 | 8.47% |
| Net income | 11,176 | 9,895 | 1,281 | 12.95% |
| Net income attributable to noncontrolling interest | (758) | (545) | (213) | 39.08% |
| Net income attributable to TowneBank | 10,418 | 9,350 | 1,068 | 11.42% |
| Preferred stock dividends | 1,340 | 1,355 | (15) | (1.11)% |
| Net income available to common shareholders | 9,078 | 7,995 | 1,083 | 13.55% |
| Net income per common share - basic | 0.28 | 0.26 | 0.02 | 7.69% |
| Net income per common share - diluted | 0.28 | 0.26 | 0.02 | 7.69% |
| Period End Data: | ||||
| Total assets | $ 4,570,905 | $ 4,318,309 | $ 252,596 | 5.85% |
| Total assets - tangible | 4,450,221 | 4,205,112 | 245,109 | 5.83% |
| Earning assets (2) | 4,204,942 | 3,947,414 | 257,528 | 6.52% |
| Loans (net of unearned income) | 3,208,204 | 3,030,141 | 178,063 | 5.88% |
| Allowance for loan losses | 38,560 | 39,336 | (776) | (1.97)% |
| Goodwill and other intangibles | 120,684 | 113,197 | 7,487 | 6.61% |
| Nonperforming assets | 55,597 | 82,429 | (26,832) | (32.55)% |
| Noninterest bearing deposits | 1,058,338 | 955,656 | 102,682 | 10.74% |
| Interest bearing deposits | 2,423,121 | 2,349,469 | 73,652 | 3.13% |
| Total deposits | 3,481,459 | 3,305,125 | 176,334 | 5.34% |
| Total equity | 577,409 | 553,606 | 23,803 | 4.30% |
| Total equity - tangible | 456,725 | 440,409 | 16,316 | 3.70% |
| Common equity | 492,894 | 412,197 | 80,697 | 19.58% |
| Common equity - tangible | 372,210 | 299,000 | 73,210 | 24.48% |
| Book value per common share | 14.17 | 13.14 | 1.03 | 7.84% |
| Book value per common share – tangible | 10.70 | 9.53 | 1.17 | 12.28% |
| Daily Average Balances: | ||||
| Total assets | $ 4,580,200 | $ 4,239,838 | $ 340,362 | 8.03% |
| Total assets - tangible | 4,459,213 | 4,126,309 | 332,904 | 8.07% |
| Earning assets (2) | 4,185,420 | 3,850,305 | 335,115 | 8.70% |
| Loans (net of unearned income), excluding nonaccrual loans | 3,168,042 | 2,958,789 | 209,253 | 7.07% |
| Allowance for loan losses | 39,113 | 40,463 | (1,350) | (3.34)% |
| Goodwill and other intangibles | 120,987 | 113,529 | 7,458 | 6.57% |
| Noninterest bearing deposits | 1,053,588 | 941,286 | 112,302 | 11.93% |
| Interest bearing deposits | 2,439,789 | 2,391,559 | 48,230 | 2.02% |
| Total deposits | 3,493,377 | 3,332,845 | 160,532 | 4.82% |
| Total equity | 576,257 | 552,541 | 23,716 | 4.29% |
| Total equity - tangible | 455,270 | 439,012 | 16,258 | 3.70% |
| Common equity | 452,180 | 411,374 | 40,806 | 9.92% |
| Common equity - tangible | 331,193 | 297,845 | 33,348 | 11.20% |
| Key Ratios: | ||||
| Return on average assets | 0.90% | 0.88% | 0.02% | 2.27% |
| Return on average assets - tangible | 0.93% | 0.90% | 0.03% | 3.33% |
| Return on average equity | 7.17% | 6.73% | 0.44% | 6.54% |
| Return on average equity - tangible | 9.08% | 8.47% | 0.61% | 7.20% |
| Return on average common equity | 7.97% | 7.73% | 0.24% | 3.10% |
| Return on average common equity - tangible | 10.88% | 10.68% | 0.20% | 1.87% |
| Net interest margin-fully tax equivalent (2)(3) | 3.53% | 3.95% | (0.42)% | (10.63)% |
| Net interest margin (2) | 3.47% | 3.87% | (0.40)% | (10.34)% |
| Average earning assets/total average assets | 91.38% | 90.81% | 0.57% | 0.63% |
| Average loans/average deposits | 90.69% | 88.78% | 1.91% | 2.15% |
| Average noninterest deposits/total average deposits | 30.16% | 28.24% | 1.92% | 6.80% |
| Allowance for loan losses/period end loans | 1.20% | 1.30% | (0.10)% | (7.69)% |
| Nonperforming assets to period end assets | 1.22% | 1.91% | (0.69)% | (36.13)% |
| Period end equity/period end total assets | 12.63% | 12.82% | (0.19)% | (1.48)% |
| Efficiency ratio (1) | 73.35% | 68.59% | 4.76% | 6.94% |
| (1) Excludes gain on investment securities | ||||
| (2) Includes bank-owned life insurance | ||||
| (3) Presented on a tax-equivalent basis | ||||
| Selected Financial Highlights (unaudited) | ||||
| TOWNEBANK | ||||
| September 30, 2013 | ||||
| (dollars in thousands) | ||||
| Increase/ | % Increase/ | |||
| Nine Months Ended September 30, | 2013 | 2012 | (Decrease) | (Decrease) |
| Results of Operations: | ||||
| Net interest income | $ 107,439 | $ 107,673 | $(234) | (0.22)% |
| Noninterest income (1) | 71,205 | 62,189 | 9,016 | 14.50% |
| Gain on investment securities | 546 | 3,038 | (2,492) | (82.03)% |
| Noninterest expenses | 127,792 | 118,403 | 9,389 | 7.93% |
| Provision for loan losses | 3,696 | 13,196 | (9,500) | (71.99)% |
| Income before income tax and noncontrolling interest | 47,702 | 41,301 | 6,401 | 15.50% |
| Provision for income tax expense | 13,480 | 11,518 | 1,962 | 17.03% |
| Net income | 34,222 | 29,783 | 4,439 | 14.90% |
| Net income attributable to noncontrolling interest | (2,133) | (1,468) | (665) | 45.31% |
| Net income attributable to TowneBank | 32,089 | 28,315 | 3,774 | 13.33% |
| Preferred stock dividends | 4,036 | 4,872 | (836) | (17.16)% |
| Net income available to common shareholders | 28,053 | 23,443 | 4,610 | 19.66% |
| Net income per common share - basic | 0.89 | 0.76 | 0.13 | 17.11% |
| Net income per common share - diluted | 0.89 | 0.76 | 0.13 | 17.11% |
| Period End Data: | ||||
| Total assets | $ 4,570,905 | $ 4,318,309 | $ 252,596 | 5.85% |
| Total assets - tangible | 4,450,221 | 4,205,112 | 245,109 | 5.83% |
| Earning assets (2) | 4,204,942 | 3,947,414 | 257,528 | 6.52% |
| Loans (net of unearned income) | 3,208,204 | 3,030,141 | 178,063 | 5.88% |
| Allowance for loan losses | 38,560 | 39,336 | (776) | (1.97)% |
| Goodwill and other intangibles | 120,684 | 113,197 | 7,487 | 6.61% |
| Nonperforming assets | 55,597 | 82,429 | (26,832) | (32.55)% |
| Noninterest bearing deposits | 1,058,338 | 955,656 | 102,682 | 10.74% |
| Interest bearing deposits | 2,423,121 | 2,349,469 | 73,652 | 3.13% |
| Total deposits | 3,481,459 | 3,305,125 | 176,334 | 5.34% |
| Total equity | 577,409 | 553,606 | 23,803 | 4.30% |
| Total equity - tangible | 456,725 | 440,409 | 16,316 | 3.70% |
| Common equity | 492,894 | 412,197 | 80,697 | 19.58% |
| Common equity - tangible | 372,210 | 299,000 | 73,210 | 24.48% |
| Book value per common share | 14.17 | 13.14 | 1.03 | 7.84% |
| Book value per common share - tangible | 10.70 | 9.53 | 1.17 | 12.28% |
| Daily Average Balances: | ||||
| Total assets | $ 4,455,437 | $ 4,147,376 | $ 308,061 | 7.43% |
| Total assets - tangible | 4,336,061 | 4,033,275 | 302,786 | 7.51% |
| Earning assets (2) | 4,071,807 | 3,756,573 | 315,234 | 8.39% |
| Loans (net of unearned income), excluding nonaccrual loans | 3,140,516 | 2,873,429 | 267,087 | 9.30% |
| Allowance for loan losses | 40,009 | 40,251 | (242) | (0.60)% |
| Goodwill and other intangibles | 119,376 | 114,101 | 5,275 | 4.62% |
| Noninterest bearing deposits | 1,009,870 | 883,553 | 126,317 | 14.30% |
| Interest bearing deposits | 2,385,832 | 2,367,208 | 18,624 | 0.79% |
| Total deposits | 3,395,702 | 3,250,761 | 144,941 | 4.46% |
| Total equity | 571,399 | 541,302 | 30,097 | 5.56% |
| Total equity - tangible | 452,023 | 427,201 | 24,822 | 5.81% |
| Common equity | 436,008 | 400,373 | 35,635 | 8.90% |
| Common equity - tangible | 316,631 | 286,272 | 30,359 | 10.60% |
| Key Ratios: | ||||
| Return on average assets | 0.96% | 0.91% | 0.05% | 5.49% |
| Return on average assets - tangible | 0.99% | 0.94% | 0.05% | 5.32% |
| Return on average equity | 7.51% | 6.99% | 0.52% | 7.44% |
| Return on average equity - tangible | 9.49% | 8.85% | 0.64% | 7.23% |
| Return on average common equity | 8.60% | 7.82% | 0.78% | 9.97% |
| Return on average common equity - tangible | 11.85% | 10.94% | 0.91% | 8.32% |
| Net interest margin-fully tax equivalent (2)(3) | 3.64% | 3.96% | (0.32)% | (8.08)% |
| Net interest margin (2) | 3.57% | 3.88% | (0.31)% | (7.99)% |
| Average earning assets/total average assets | 91.39% | 90.58% | 0.81% | 0.89% |
| Average loans/average deposits | 92.49% | 88.39% | 4.10% | 4.64% |
| Average noninterest deposits/total average deposits | 29.74% | 27.18% | 2.56% | 9.42% |
| Allowance for loan losses/period end loans | 1.20% | 1.30% | (0.10)% | (7.69)% |
| Nonperforming assets to period end assets | 1.22% | 1.91% | (0.69)% | (36.13)% |
| Period end equity/period end total assets | 12.63% | 12.82% | (0.19)% | (1.48)% |
| Efficiency ratio (1) | 71.53% | 69.71% | 1.82% | 2.61% |
| (1) Excludes gain on investment securities | ||||
| (2) Includes bank-owned life insurance | ||||
| (3) Presented on a tax-equivalent basis | ||||
| Selected Financial Highlights (unaudited) | ||||
| TOWNEBANK | ||||
| September 30, 2013 | ||||
| (dollars in thousands) | ||||
| September 30, | June 30, | Increase/ | % Increase/ | |
| Three Months Ended | 2013 | 2013 | (Decrease) | (Decrease) |
| Results of Operations: | ||||
| Net interest income | $ 36,152 | $ 36,077 | $ 75 | 0.21% |
| Noninterest income (1) | 22,987 | 24,463 | (1,476) | (6.03)% |
| Gain (loss) on investment securities | 150 | (208) | 358 | N/M |
| Noninterest expenses | 43,379 | 43,817 | (438) | (1.00)% |
| Provision for loan losses | 328 | (202) | 530 | N/M |
| Income before income tax and noncontrolling interest | 15,583 | 16,717 | (1,134) | (6.78)% |
| Provision for income tax expense | 4,407 | 4,707 | (300) | (6.37)% |
| Net income | 11,176 | 12,010 | (834) | (6.94)% |
| Net income attributable to noncontrolling interest | (758) | (811) | 53 | (6.54)% |
| Net income attributable to TowneBank | 10,418 | 11,199 | (781) | (6.97)% |
| Preferred stock dividends | 1,340 | 1,344 | (4) | (0.30)% |
| Net income available to common shareholders | 9,078 | 9,855 | (777) | (7.88)% |
| Net income per common share - basic | 0.28 | 0.32 | (0.04) | (12.50)% |
| Net income per common share - diluted | 0.28 | 0.31 | (0.03) | (9.68)% |
| Period End Data: | ||||
| Total assets | $ 4,570,905 | $ 4,595,087 | $(24,182) | (0.53)% |
| Total assets - tangible | 4,450,221 | 4,477,114 | (26,893) | (0.60)% |
| Earning assets (3) | 4,204,942 | 4,230,005 | (25,063) | (0.59)% |
| Loans (net of unearned income) | 3,208,204 | 3,180,110 | 28,094 | 0.88% |
| Allowance for loan losses | 38,560 | 39,037 | (477) | (1.22)% |
| Goodwill and other intangibles | 120,684 | 117,973 | 2,711 | 2.30% |
| Nonperforming assets | 55,597 | 59,342 | (3,745) | (6.31)% |
| Noninterest bearing deposits | 1,058,338 | 1,076,898 | (18,560) | (1.72)% |
| Interest bearing deposits | 2,423,121 | 2,433,169 | (10,048) | (0.41)% |
| Total deposits | 3,481,459 | 3,510,067 | (28,608) | (0.82)% |
| Total equity | 577,409 | 571,388 | 6,021 | 1.05% |
| Total equity - tangible | 456,725 | 453,415 | 3,310 | 0.73% |
| Common equity | 492,894 | 429,636 | 63,258 | 14.72% |
| Common equity - tangible | 372,210 | 311,663 | 60,547 | 19.43% |
| Book value per common share | 14.17 | 13.61 | 0.56 | 4.11% |
| Book value per common share - tangible | 10.70 | 9.87 | 0.83 | 8.41% |
| Daily Average Balances: | ||||
| Total assets | $ 4,580,200 | $ 4,439,414 | $ 140,786 | 3.17% |
| Total assets - tangible | 4,459,213 | 4,321,112 | 138,101 | 3.20% |
| Earning assets (2) | 4,185,420 | 4,064,556 | 120,864 | 2.97% |
| Loans (net of unearned income), excluding nonaccrual loans | 3,168,042 | 3,150,527 | 17,515 | 0.56% |
| Allowance for loan losses | 39,113 | 40,127 | (1,014) | (2.53)% |
| Goodwill and other intangibles | 120,987 | 118,302 | 2,685 | 2.27% |
| Noninterest bearing deposits | 1,053,588 | 1,023,045 | 30,543 | 2.99% |
| Interest bearing deposits | 2,439,789 | 2,354,032 | 85,757 | 3.64% |
| Total deposits | 3,493,377 | 3,377,077 | 116,300 | 3.44% |
| Total equity | 576,257 | 571,955 | 4,302 | 0.75% |
| Total equity - tangible | 455,270 | 453,653 | 1,617 | 0.36% |
| Common equity | 452,180 | 430,652 | 21,528 | 5.00% |
| Common equity - tangible | 331,193 | 312,350 | 18,843 | 6.03% |
| Key Ratios: | ||||
| Return on average assets | 0.90% | 1.01% | (0.11)% | (10.89)% |
| Return on average assets - tangible | 0.93% | 1.04% | (0.11)% | (10.58)% |
| Return on average equity | 7.17% | 7.85% | (0.68)% | (8.66)% |
| Return on average equity - tangible | 9.08% | 9.90% | (0.82)% | (8.28)% |
| Return on average common equity | 7.97% | 9.18% | (1.21)% | (13.18)% |
| Return on average common equity - tangible | 10.88% | 12.66% | (1.78)% | (14.06)% |
| Net interest margin-fully tax equivalent (2)(3) | 3.53% | 3.67% | (0.14)% | (3.81)% |
| Net interest margin (2) | 3.47% | 3.60% | (0.13)% | (3.61)% |
| Average earning assets/total average assets | 91.38% | 91.56% | (0.18)% | (0.20)% |
| Average loans/average deposits | 90.69% | 93.29% | (2.60)% | (2.79)% |
| Average noninterest deposits/total average deposits | 30.16% | 30.29% | (0.13)% | (0.43)% |
| Allowance for loan losses/period end loans | 1.20% | 1.23% | (0.03)% | (2.44)% |
| Nonperforming assets to period end assets | 1.22% | 1.29% | (0.07)% | (5.43)% |
| Period end equity/period end total assets | 12.63% | 12.43% | 0.20% | 1.61% |
| Efficiency ratio (1) | 73.35% | 72.38% | 0.97% | 1.34% |
| (1) Excludes gain on investment securities | ||||
| (2) Includes bank-owned life insurance | ||||
| (3) Presented on a tax-equivalent basis | ||||