TowneBank Reports Record First Quarter 2021 Earnings

| Source: TowneBank TowneBank

SUFFOLK, Va., April 29, 2021 (GLOBE NEWSWIRE) -- TowneBank (the “Company”) (NASDAQ: TOWN) today reported earnings for the quarter ended March 31, 2021 of $69.0 million, or $0.95 per diluted share, compared to $26.38 million, or $0.36 per diluted share, for the quarter ended March 31, 2020.

“Towne continued the strong earnings momentum from the latter half of last year fueled by continued strength in our fee-based businesses and solid growth in deposits and loans. Our deposit balances climbed to new record levels and our teams continue to assist those companies and individuals most impacted by the pandemic by delivering $429 million in new Paycheck Protection Program funding during the first quarter. Overall, we are off to a great start to the year,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for First Quarter 2021 Compared to First Quarter 2020:

  • Total revenues were $182.51 million, an increase of $44.81 million, or 32.54%.
  • Pre-provision, pre-tax, net revenues (non-GAAP) were $81.55 million, an increase of $41.96 million, or 105.99%.
  • Loans held for investment were $9.73 billion, an increase of $0.95 billion, or 10.82%, from March 31, 2020, and   $0.11 billion, or 1.10%, from December 31, 2020. In first quarter 2021, the Company originated approximately $429.41 million of loans in round two of the Small Business Administration's Paycheck Protection Program ("PPP"). The balance at March 31, 2021 and December 31, 2020 included $898.73 million and $855.89 million, respectively, of PPP loans.
  • Total deposits were $12.14 billion, an increase of $2.83 billion, or 30.42%, compared to prior year and $0.57 billion, or 4.89%, from December 31, 2020.
  • Noninterest bearing deposits increased by 58.17%, to $4.84 billion, representing 39.87% of total deposits. Compared to the linked quarter, noninterest bearing deposits increased 10.66%.
  • Annualized return on common shareholders' equity was 15.70% and annualized return on average tangible common shareholders' equity was 22.45% (non-GAAP).
  • Net interest margin for the quarter was 3.04% and taxable equivalent net interest margin (non-GAAP) was 3.06%.
  • Nonperforming assets were $17.27 million, or 0.11% of total assets, compared to $29.75 million, or 0.24%, at March 31, 2020.
  • Effective tax rate of 19.37% in the quarter compared to 19.00% in the first quarter of 2020.

“During the quarter we opened our newest banking office located in the Myers Park area of Charlotte, North Carolina, with a third Charlotte region banking office planned to open later this year. Looking ahead, we believe the investments in our newer markets will deliver significant growth opportunities as the economy improves,” stated J. Morgan Davis, President and Chief Executive Officer.

Quarterly Net Interest Income Compared to First Quarter 2020:

  • Net interest income was $99.99 million compared to $89.50 million at March 31, 2020.
  • Taxable equivalent net interest margin (non-GAAP) was 3.06%, including purchase accounting accretion of 5 basis points and PPP interest and fees of 12 basis points, compared to 3.37%, including purchase accounting accretion of 13 basis points and no PPP interest and fees, for first quarter 2020.
  • Average loans held for investment, with an average yield of 4.29%, represented 72.30% of average earning assets at March 31, 2021 compared to an average yield of 4.73% and 79.60% of average earning assets in the first quarter of 2020. Excluding PPP loans, loan yields were 4.18% in first quarter 2021.
  • Interest and fee income on PPP loans was $11.63 million in first quarter 2021, compared to $11.29 million in the linked quarter, and zero in first quarter 2020.
  • Total cost of deposits decreased to 0.30% from 0.83% at March 31, 2020.
  • Average interest-earning assets totaled $13.34 billion at March 31, 2021 compared to $10.74 billion at March 31, 2020, an increase of 24.21%.
  • Average interest-bearing liabilities totaled $8.01 billion, an increase of $0.85 billion from prior year.
  • Interest expense on the Federal Reserve Bank ("FRB") PPP lending facility was $0.16 million in first quarter, compared to $0.04 million in the linked quarter, and zero in first quarter 2020.

Quarterly Provision for Credit Losses:

  • The quarterly provision for credit losses for on-balance-sheet loans was a benefit of $3.41 million compared to a provision expense of $5.76 million one year ago and an expense of $1.21 million in the linked quarter. The first quarter 2021 included a release in the allowance for credit losses of $3.41 million driven by a combination of minimal net charge-offs, improvements in the economic forecast, offset by modest core loan growth.
  • Net loan charge-offs were $0.67 million compared to charge-offs of $0.56 million one year prior. The ratio of net loan charge-offs to average loans on an annualized basis was 0.03% in first quarter 2021 and 2020.
  • The provision for credit losses on off-balance-sheet commitments was a benefit of $0.48 million compared to a provision expense of $1.10 million in the first quarter of 2020, and $0.06 million in the linked quarter.
  • The allowance for credit losses on loans represented 1.19% of total loans compared to 1.25% at December 31, 2020 and 0.73% at March 31, 2020. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses (non-GAAP) was 1.31%, compared to 1.37% at December 31, 2020. The allowance for credit losses on loans was 9.09 times nonperforming loans compared to 10.74 times at December 31, 2020 and 3.85 times at March 31, 2020.

Quarterly Noninterest Income Compared to First Quarter 2020:

  • Total noninterest income was $82.52 million compared to $48.20 million in 2020, an increase of $34.32 million, or 71.20%. Residential mortgage banking income increased $30.0 million and real estate brokerage and property management income increased $11.0 million. Also included in noninterest income are net gains on investment securities of $1.0 million as compared to net gains of $5.0 million in the prior year.
  • Residential mortgage banking recorded income of $37.41 million compared to $7.42 million in first quarter 2020. Loan volume in the current quarter was $1.60 billion, with purchase activity comprising 53.45% of that volume. Loan volume in first quarter 2020 was $0.92 billion, with purchase activity comprising 61.31%. In addition to increased income resulting from the impact of higher loan volume and strong margins in the current quarter compared to prior year, the Company recorded a net gain on derivative instruments of $2.86 million compared to a loss on derivative instruments of $10.89 million in first quarter 2020.
  • Total Insurance segment revenue decreased $0.17 million, or 0.83% to $20.07 million in first quarter 2021 compared to 2020. The Company acquired a property and casualty insurance agency in December 2020, which brought in $0.61 million in additional revenue in first quarter 2021 and partially offset the impact of the reduction in revenues due to the sale of its travel insurance joint venture in third quarter 2020, which contributed revenue of $1.27 million in first quarter 2020.
  • Property management fee revenue increased 205.20%, or $10.41 million, to $15.48 million compared to first quarter 2020. The continuation of international travel restrictions related to COVID-19 coupled with many businesses and schools continuing to operate remotely has positively impacted the demand for domestic travel destinations. This high demand is in sharp contrast to the virtual shut-downs created by quarantines in first quarter 2020 that resulted in only limited reservation activities.

Quarterly Noninterest Expense Compared to First Quarter 2020:

  • Total noninterest expense was $97.33 million compared to $96.89 million in 2020, an increase of $0.44 million, or 0.45%. Increases in salary and benefits expense of $2.57 million, occupancy expense of $0.57 million, data processing expense of $0.45 million, and software expense of $0.70 million, were partially offset by a $2.27 million reduction in the estimated fourth quarter 2020 incentive accrual and $2.34 million in deferred loan costs related to the origination of PPP loans during first quarter 2021.
  • The quarterly increase in salaries and benefits was primarily driven by higher variable production related costs.   Strong first quarter mortgage production resulted in increased overtime and incentive expenses as well as related payroll taxes.
  • Increased mortgage volume and higher credit card fees on vacation property reservation activities drove the increase in data processing expense, while increased costs associated with our core banking platform resulted in higher software expenses.

Consolidated Balance Sheet Highlights:

  • Total assets were $15.08 billion for the quarter ended March 31, 2021, an increase of $0.45 billion, or 3.10%, compared to $14.63 billion at December 31, 2020. Total assets increased $2.46 billion, or 19.45%, from $12.62 billion at March 31, 2020. The year-over-year increase was driven primarily by higher liquidity levels and loans held for investment tied to PPP lending activities.
  • Loans held for investment increased $0.95 billion, or 10.82%, compared to prior year and $0.11 billion compared the linked quarter. Excluding PPP loans of $0.90 billion in the first quarter, and $0.86 billion in the fourth quarter of 2020, loans held for investment increased $52.06 million, or 0.59%, compared to prior year, and $63.08 million, or 0.72%, compared to the linked quarter, or 2.92% on an annualized basis.
  • Average loans held for investment, excluding PPP loans, were $8.78 billion in the first quarter of 2021, an increase of $213.39 million, or 2.49% compared to prior year.   In the linked quarter comparison, average loans held for investment, excluding PPP loans, increased 0.61%, or $53.48 million, 2.49% on an annualized basis.
  • Mortgage loans held for sale increased   $129.76 million, or 28.64%, compared to the prior year and $42.11 million, or 7.79%, compared to the linked quarter.
  • Total deposits increased $2.83 billion, or 30.42%, compared to the prior year and $0.57 billion, or 4.89%, compared to the linked quarter.
  • Total borrowings decreased $0.64 billion, or 45.63%, from prior year and $0.20 billion, or 20.82%, compared to the linked quarter.

Investment Securities:

  • Total investment securities were $1.46 billion compared to $1.42 billion at December 31, 2020 and $1.35 billion at March 31, 2020. The weighted average duration of the portfolio at March 31, 2021 was 4.33 years. The carrying value of the AFS debt securities portfolio included $28.12 million in net unrealized gains compared to $58.32 million in net unrealized gains at December 31, 2020. During the first quarter of 2021, we sold $15.18 million in AFS debt securities at a gain of $1.0 million to reposition the portfolio.

Loans and Asset Quality:

  • Total loans held for investment were $9.73 billion at March 31, 2021 compared to $9.63 billion at December 31, 2020 and $8.78 billion at March 31, 2020.
  • Nonperforming assets were $17.27 million, or 0.11% of total assets, compared to $29.75 million, or 0.24%, at March 31, 2020.
  • Nonperforming loans were 0.13% of period end loans compared to 0.19% at March 31, 2020.
  • Foreclosed property decreased to $3.75 million from $13.05 million at March 31, 2020.
  • Expected loss estimates are subject to change based on continuing review of models and assumptions, portfolio performance, changes in forecasted macroeconomic conditions and loan mix which could result in material changes to the reserve in future periods.
  • At March 31, 2021 we had $210.25 million in loan modifications made in accordance with section 4013 of the CARES Act.

Deposits and Borrowings:

  • Total deposits were $12.14 billion compared to $11.57 billion at December 31, 2020 and $9.31 billion at March 31, 2020.
  • Total loans to deposits were 80.19% compared to 83.20% at December 31, 2020 and 94.37% at March 31, 2020.
  • Non-interest bearing deposits were 39.87% of total deposits at March 31, 2021 compared to 37.80% at December 31, 2020 and 32.88% at March 31, 2020.
  • Total borrowings were $0.76 billion compared to $0.96 billion at December 31, 2020 and $1.39 billion at March 31, 2020.

Capital:

  • Common equity tier 1 capital ratio of 12.15%.
  • Tier 1 leverage capital ratio of 9.54%.
  • Tier 1 risk-based capital ratio of 12.30%.
  • Total risk-based capital ratio of 15.59%.
  • Book value was $24.78 compared to $24.31 at December 31, 2020 and $22.77 at March 31, 2020.
  • Tangible book value (non-GAAP) was $17.94 compared to $17.46 at December 31, 2020 and $15.91 at March 31, 2020.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, the bank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. Towne has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $15.08 billion as of March 31, 2021, 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 its 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. 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:
Certain statements contained in this release constitute forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements speak only as of the date of this release, are based on current expectations, and involve a number of assumptions. These include statements regarding TowneBank’s future economic performance, financial condition, prospects, growth, strategies and expectations, and objectives of management, and are generally identified by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” or “project” or similar expressions. 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. You should not place undue reliance on forward-looking statements, which are subject to assumptions that are subject to change. TowneBank’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ from those indicated or implied in the forward-looking statements and such differences may be material. Factors which could have a material effect on the operations and future prospects of TowneBank include but are not limited to: the impacts of the ongoing coronavirus (COVID-19) pandemic, 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 System; the quality and composition of TowneBank’s loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in TowneBank’s market area; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; 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.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
J. Morgan Davis, President and Chief Executive Officer, 757-673-1673

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

 
 
TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
   
  Three Months Ended
  March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
Income and Performance Ratios:         
 Total Revenue$182,509  $171,848  $192,135  $162,656  $137,696 
 Net income72,631  53,891  50,715  37,222  27,605 
 Net income available to common shareholders68,995  50,082  34,464  34,605  26,384 
 Pre-provision, pre-tax, net revenues (non-GAAP)81,547  62,107  73,903  69,014  39,587 
 Net income per common share - diluted0.95  0.69  0.48  0.48  0.36 
 Book value per common share24.78  24.31  23.83  23.50  22.77 
 Book value per common share - tangible (non-GAAP)17.94  17.46  17.06  16.68  15.91 
 Return on average assets1.92% 1.35% 0.89% 0.97% 0.88%
 Return on average assets - tangible (non-GAAP)2.05% 1.46% 0.97% 1.07% 1.00%
 Return on average equity15.56% 11.26% 7.85% 8.18% 6.37%
 Return on average equity - tangible (non-GAAP)22.19% 16.28% 11.66% 12.32% 9.91%
 Return on average common equity15.70% 11.36% 7.91% 8.24% 6.42%
 Return on average common equity - tangible (non-GAAP)22.45% 16.48% 11.79% 12.44% 10.01%
 Noninterest income as a percentage of total revenue45.21% 41.45% 49.64% 42.66% 35.00%
Regulatory Capital Ratios (1):         
 Common equity tier 112.15% 11.87% 11.75% 11.54% 11.23%
 Tier 112.30% 12.04% 11.91% 11.67% 11.35%
 Total15.59% 15.42% 15.35% 14.91% 14.40%
 Tier 1 leverage ratio9.54% 8.99% 8.89% 9.05% 10.11%
Asset Quality:         
 Allowance for credit losses on loans to nonperforming loans9.09x 10.74x 7.31x 5.34x 3.85x
 Allowance for credit losses on loans to period end loans1.19% 1.25% 1.22% 0.92% 0.73%
 Allowance for credit losses on loans to period end loans excluding PPP loans (non-GAAP)1.31% 1.37% 1.37% 1.04% 0.73%
 Nonperforming loans to period end loans0.13% 0.12% 0.17% 0.17% 0.19%
 Nonperforming assets to period end assets0.11% 0.11% 0.19% 0.19% 0.24%
 Net charge-offs (recoveries) to average loans (annualized)0.03% —% (0.01)% —% 0.03%
 Net charge-offs (recoveries)$669  $109  $(328)  $(102)  $559 
           
 Nonperforming loans$12,768  $11,188  $16,295  $16,935  $16,700 
 Former bank premises750  750  750  —  — 
 Foreclosed property3,748  4,276  11,695  12,315  13,053 
 Total nonperforming assets$17,266  $16,214  $28,740  $29,250  $29,753 
 Loans past due 90 days and still accruing interest$108  $528  $19  $464  $91 
 Allowance for credit losses on loans$116,077  $120,157  $119,058  $90,467  $64,372 
Mortgage Banking:         
 Loans originated, mortgage$1,187,595  $1,257,963  $1,292,801  $1,116,782  $718,681 
 Loans originated, joint venture417,177  429,848  498,100  357,815  204,522 
 Total loans originated$1,604,772  $1,687,811  $1,790,901  $1,474,597  $923,203 
 Number of loans originated5,165  5,481  5,817  4,818  3,025 
 Number of originators229  228  224  216  223 
 Purchase %53.45% 59.76% 61.21% 51.26% 61.31%
 Loans sold$1,601,480  $1,845,926  $1,833,590  $1,398,649  $809,834 
 Rate lock asset$12,522  $11,781  $10,480  $7,202  $3,691 
 Gross realized gain on sales and fees as a % of loans originated4.01% 4.02% 3.65% 3.17% 1.80%
Other Ratios:         
 Net interest margin3.04% 2.97% 2.70% 2.85% 3.35%
 Net interest margin-fully tax equivalent (non-GAAP)3.06% 2.98% 2.72% 2.87% 3.37%
 Average earning assets/total average assets91.47% 91.59% 92.09% 91.33% 89.15%
 Average loans/average deposits82.71% 83.42% 86.29% 91.81% 92.99%
 Average noninterest deposits/total average deposits38.39% 39.61% 37.76% 36.52% 32.21%
 Period end equity/period end total assets12.04% 12.20% 11.82% 11.05% 13.19%
 Efficiency ratio (non-GAAP)52.11% 60.02% 57.36% 55.17% 70.79%
 (1) Current reporting period regulatory capital ratios are preliminary      


 
 
TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
 
Investment Securities      % Change
 Q1 Q1 Q4 Q1 21 vs. Q1 21 vs.
Available-for-sale securities, at fair value2021 2020 2020 Q1 20 Q4 20
U.S. agency securities$201,787   $121,857   $184,657   65.59% 9.28%
U.S. Treasury notes1,019   1,014   1,000   0.49% 1.90%
Municipal securities334,751   266,489   353,651   25.62% (5.34)%
Trust preferred and other corporate securities31,241   59,606   31,499   (47.59)% (0.82)%
Mortgage-backed securities issued by GSE and GNMA849,418   799,713   797,765   6.22% 6.47%
Allowance for credit losses(210)  (259)  (348)  (18.92)% (39.66)%
Total$1,418,006   $1,248,420   $1,368,224   13.58% 3.64%
Gross unrealized gains (losses) reflected in financial statements               
Total gross unrealized gains$38,751   $30,545   $60,025   26.87% (35.44)%
Total gross unrealized losses(10,632)  (9,848)  (1,703)  7.96% 524.31%
Net unrealized gains (losses) and other adjustments on AFS securities$28,119   $20,697   $58,322   35.86% (51.79)%
Held-to-maturity securities, at amortized cost         
Municipal securities$5,032   $28,852   $5,012   (82.56)% 0.40%
Trust preferred corporate securities2,309   2,357   2,321   (2.04)% (0.52)%
Mortgage-backed securities issued by GSE and GNMA8,639   11,222   9,179   (23.02)% (5.88)%
Allowance for credit losses(97)  (133)  (97)  (27.07)% —%
Total$15,883   $42,298   $16,415   (62.45)% (3.24)%
          
Gross unrealized gains (losses) not reflected in financial statements            
Total gross unrealized gains$1,598   $964   $1,957   65.77% (18.34)%
Total gross unrealized losses—   —   —   —% —%
Net unrealized gains (losses) in HTM securities$1,598   $964   $1,957   65.77% (18.34)%
          
Loans Held For Investment (1)      % Change
 Q1 Q1 Q4 Q1 21 vs. Q1 21 vs.
 2021 2020 2020 Q1 20 Q4 20
Real estate - construction and development$1,031,267   $1,060,834   $1,199,772   (2.79)% (14.04)%
Commercial real estate - owner occupied1,439,412   1,398,216   1,380,516   2.95% 4.27%
Commercial real estate - non owner occupied2,477,315   2,305,971   2,335,235   7.43% 6.08%
Real estate - multifamily360,125   283,514   295,488   27.02% 21.87%
Residential 1-4 family1,173,761   1,229,909   1,216,629   (4.57)% (3.52)%
HELOC400,314   463,653   412,476   (13.66)% (2.95)%
Commercial and industrial business (C&I)2,005,558   1,311,266   1,990,808   52.95% 0.74%
Government398,579   324,978   379,243   22.65% 5.10%
Indirect278,567   268,347   271,459   3.81% 2.62%
Consumer loans and other169,685   137,507   147,442   23.40% 15.09%
Total$9,734,583   $8,784,195   $9,629,068   10.82% 1.10%
(1) Paycheck Protection Program loans totaling $0.90 billion and $0.86 billion, primarily in C&I, are included in Q1 2021 and Q4 2020, respectively.
          
Deposits      % Change
 Q1 Q1 Q4 Q1 21 vs. Q1 21 vs.
 2021 2020 2020 Q1 20 Q4 20
Noninterest-bearing demand$4,840,678   $3,060,515   $4,374,566   58.17% 10.66%
Interest-bearing:         
Demand and money market accounts5,062,461   3,573,926   4,819,604   41.65% 5.04%
Savings342,554   280,807   330,091   21.99% 3.78%
Certificates of deposits1,893,951   2,392,744   2,048,905   (20.85)% (7.56%
Total$12,139,644   $9,307,992   $11,573,166   30.42% 4.89%


 
 
TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
 
 Three Months Ended Three Months Ended Three Months Ended
 March 31, 2021 December 31, 2020 March 31, 2020
   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 (1)$9,647,129  $101,960  4.29% $9,752,150  $104,799  4.28% $8,550,216  $100,566  4.73%
Taxable investment securities1,303,535  6,604  2.03% 1,250,375  6,878  2.20% 1,356,411  9,211  2.72%
Tax-exempt investment securities139,859  542  1.55% 139,572  520  1.49% 128,204  861  2.69%
Total securities1,443,394  7,146  1.98% 1,389,947  7,398  2.13% 1,484,615  10,072  2.71%
Interest-bearing deposits1,715,110  416  0.10% 1,754,365  435  0.10% 373,984  1,102  1.19%
Loans held for sale536,997  3,361  2.50% 587,517  3,867  2.63% 333,070  2,988  3.59%
Total earning assets13,342,630  112,883  3.43% 13,483,979  116,499  3.44% 10,741,885  114,728  4.30%
Less: allowance for credit losses(120,934)     (121,402)     (55,331)    
Total nonearning assets1,370,720      1,359,808      1,362,769     
Total assets$14,592,416      $14,722,385      $12,049,323     
Liabilities and Equity:                   
Interest-bearing deposits                   
Demand and money market$4,904,885  $2,075  0.17% $4,582,588  $2,633  0.23% $3,521,707  $5,319  0.61%
Savings332,006  522  0.64% 317,561  552  0.69% 276,947  593  0.86%
Certificates of deposit1,959,225  5,951  1.23% 2,159,573  7,578  1.40% 2,434,098  13,150  2.17%
Total interest-bearing deposits7,196,116  8,548  0.48% 7,059,722  10,763  0.61% 6,232,752  19,062  1.23%
Borrowings562,451  822  0.58% 722,291  1,645  0.89% 679,745  2,581  1.50%
Subordinated debt, net249,114  2,930  4.70% 248,965  2,962  4.76% 248,510  2,962  4.77%
Total interest-bearing liabilities8,007,681  12,300  0.62% 8,030,978  15,370  0.76% 7,161,007  24,605  1.38%
Demand deposits4,483,444      4,630,665      2,962,110     
Other noninterest-bearing liabilities303,524      291,836      260,500     
Total liabilities12,794,649      12,953,479      10,383,617     
Shareholders’ equity1,797,767      1,768,906      1,665,706     
Total liabilities and equity$14,592,416      $14,722,385      $12,049,323     
Net interest income (tax-equivalent basis)    $100,583      $101,129      $90,123   
Reconciliation of Non-GAAP Financial Measures                   
Tax-equivalent basis adjustment    (593)     (515)     (627)  
Net interest income (GAAP)    $99,990      $100,614      $89,496   
                    
Interest rate spread (2)(3)      2.81%     2.68%     2.92%
Interest expense as a percent of average earning assets      0.37%     0.45%     0.92%
Net interest margin (tax equivalent basis) (3)(4)      3.06%     2.98%     3.37%
Total cost of deposits      0.30%     0.37%     0.83%
                    

(1) March 31, 2021 and December 31, 2020 includes average PPP balances of $0.88 billion and $1.04 billion, and related interest and fee income of $11.63 million and $11.29 million, respectively.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.

 
 
TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)
  
   
 March 31, December 31,
 2021 2020
 (unaudited) (audited)
ASSETS   
Cash and due from banks$141,545  $41,514 
Interest-bearing deposits at FRB - Richmond1,936,458  1,795,241 
Interest-bearing deposits in financial institutions30,031  27,532 
Total Cash and Cash Equivalents2,108,034  1,864,287 
Securities available for sale, at fair value (amortized cost of $1,390,097 and $1,310,250, and allowance for credit losses of $210 and $348 at March 31, 2021 and December 31, 2020, respectively.)1,418,006  1,368,224 
Securities held to maturity, at amortized cost (fair value $17,578 and $18,469 at March 31, 2021 and December 31, 2020, respectively.)15,980  16,512 
Less: allowance for credit losses(97) (97)
Securities held to maturity, net of allowance for credit losses15,883  16,415 
Other equity securities6,355  6,492 
FHLB stock16,909  30,135 
Total Securities1,457,153  1,421,266 
Mortgage loans held for sale582,905  540,798 
Loans, net of unearned income and deferred costs9,734,583  9,629,068 
Less: allowance for credit losses(116,077) (120,157)
Net Loans9,618,506  9,508,911 
Premises and equipment, net261,831  260,242 
Goodwill452,328  452,328 
Other intangible assets, net44,808  45,533 
BOLI247,655  246,109 
Other assets306,176  286,970 
TOTAL ASSETS$15,079,396  $14,626,444 
    
LIABILITIES AND EQUITY   
Deposits:   
Noninterest-bearing demand$4,840,678  $4,374,566 
Interest-bearing:   
Demand and money market accounts5,062,461  4,819,604 
Savings342,554  330,091 
Certificates of deposit1,893,951  2,048,905 
Total Deposits12,139,644  11,573,166 
Advances from the FHLB255,872  456,038 
Subordinated debt, net249,204  249,055 
FRB PPP lending facility183,164  182,852 
Repurchase agreements and other borrowings68,509  67,786 
Total Borrowings756,749  955,731 
Other liabilities366,697  313,719 
TOTAL LIABILITIES13,263,090  12,842,616 
Preferred stock, authorized and unissued shares - 2,000,000—  — 
Common stock, $1.667 par: 150,000,000 shares authorized 72,653,670 and 72,667,541 shares issued at March 31, 2021 and December 31, 2020, respectively121,108  121,132 
Capital surplus1,047,312  1,046,642 
Retained earnings613,826  557,889 
Common stock issued to deferred compensation trust, at cost 873,521 and 873,486 shares at March 31, 2021 and December 31, 2020, respectively(17,063) (16,969)
Deferred compensation trust17,063  16,969 
Accumulated other comprehensive income (loss)17,969  41,184 
TOTAL SHAREHOLDERS’ EQUITY1,800,215  1,766,847 
Noncontrolling interest16,091  16,981 
TOTAL EQUITY1,816,306  1,783,828 
TOTAL LIABILITIES AND EQUITY$15,079,396  $14,626,444 
 


 
TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
    
    
 Three Months Ended
 March 31,
 2021 2020
INTEREST INCOME:   
Loans, including fees$101,396  $100,062 
Investment securities7,117  9,949 
Interest-bearing deposits in financial institutions and federal funds sold416  1,102 
Mortgage loans held for sale3,361  2,988 
Total interest income112,290  114,101 
INTEREST EXPENSE:   
Deposits8,548  19,062 
Advances from the FHLB497  2,492 
Subordinated debt, net2,930  2,962 
Repurchase agreements and other borrowings325  89 
Total interest expense12,300  24,605 
Net interest income99,990  89,496 
    
PROVISION FOR CREDIT LOSSES(4,027) 7,016 
Net interest income after provision for credit losses104,017  82,480 
NONINTEREST INCOME:   
Residential mortgage banking income, net37,412  7,416 
Insurance commissions and other title fees and income, net16,325  16,893 
Real estate brokerage and property management income, net17,934  6,938 
Service charges on deposit accounts2,190  2,440 
Credit card merchant fees, net1,302  1,179 
BOLI1,519  3,105 
Other income4,837  5,227 
Net gain/(loss) on investment securities1,000  5,002 
Total noninterest income82,519  48,200 
NONINTEREST EXPENSE:   
Salaries and employee benefits58,435  55,867 
Occupancy expense8,072  7,502 
Furniture and equipment3,512  3,640 
Amortization - intangibles2,723  2,950 
Software expense4,194  3,492 
Data processing3,239  2,791 
Professional fees2,339  3,067 
Advertising and marketing2,968  3,584 
Other expenses11,844  13,995 
Total noninterest expense97,326  96,888 
Income before income tax expense and noncontrolling interest89,210  33,792 
Provision for income tax expense16,579  6,187 
Net income$72,631  $27,605 
Net income attributable to noncontrolling interest(3,636) (1,221)
Net income attributable to TowneBank$68,995  $26,384 
Per common share information   
Basic earnings$0.95  $0.37 
Diluted earnings$0.95  $0.36 
Cash dividends declared$0.18  $0.18 


 
 
TOWNEBANK
Consolidated Balance Sheets - Five Quarter Trend
(dollars in thousands, except share data)
 
          
 March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
 (unaudited) (audited) (unaudited) (unaudited) (unaudited)
ASSETS         
Cash and due from banks$141,545  $41,514  $114,604  $115,724  $108,929 
Interest-bearing deposits at FRB - Richmond1,936,458  1,795,241  1,670,186  2,511,152  753,643 
Interest-bearing deposits in financial institutions30,031  27,532  24,890  24,374  23,564 
Total Cash and Cash Equivalents2,108,034  1,864,287  1,809,680  2,651,250  886,136 
Securities available for sale1,418,006  1,368,224  1,310,683  1,266,624  1,248,420 
Securities held to maturity15,980  16,512  17,131  41,595  42,431 
Less: allowance for credit losses(97) (97) (90) (121) (133)
Securities held to maturity, net of allowance for credit losses15,883  16,415  17,041  41,474  42,298 
Other equity securities6,355  6,492  6,497  6,497  6,462 
FHLB stock16,909  30,135  41,829  49,277  52,042 
Total Securities1,457,153  1,421,266  1,376,050  1,363,872  1,349,222 
Mortgage loans held for sale582,905  540,798  669,020  610,369  453,143 
Loans, net of unearned income and deferred costs9,734,583  9,629,068  9,770,570  9,801,889  8,784,195 
Less: allowance for credit losses(116,077) (120,157) (119,058) (90,467) (64,372)
Net Loans9,618,506  9,508,911  9,651,512  9,711,422  8,719,823 
Premises and equipment, net261,831  260,242  256,909  257,533  236,735 
Goodwill452,328  452,328  446,725  446,725  446,725 
Other intangible assets, net44,808  45,533  45,781  48,632  51,448 
BOLI247,655  246,109  244,103  242,493  240,924 
Other assets306,176  286,970  295,637  247,962  239,670 
TOTAL ASSETS$15,079,396  $14,626,444  $14,795,417  $15,580,258  $12,623,826 
LIABILITIES AND EQUITY         
Deposits:         
Noninterest-bearing demand$4,840,678  $4,374,566  $4,464,178  $4,226,208  $3,060,515 
Interest-bearing:         
Demand and money market accounts5,062,461  4,819,604  4,642,482  4,223,391  3,573,926 
Savings342,554  330,091  312,444  298,673  280,807 
Certificates of deposit1,893,951  2,048,905  2,285,859  2,516,666  2,392,744 
Total Deposits12,139,644  11,573,166  11,704,963  11,264,938  9,307,992 
Advances from the FHLB255,872  456,038  731,202  906,365  971,527 
Subordinated debt, net249,204  249,055  248,906  248,756  248,607 
FRB PPP lending facility183,164  182,852  —  1,111,429  — 
Repurchase agreements and other borrowings68,509  67,786  58,061  60,913  171,762 
Total Borrowings756,749  955,731  1,038,169  2,327,463  1,391,896 
Other liabilities366,697  313,719  303,582  266,314  258,306 
TOTAL LIABILITIES13,263,090  12,842,616  13,046,714  13,858,715  10,958,194 
Preferred stock         
Authorized shares - 2,000,000—  —  —  —  — 
Common stock, $1.667 par value121,108  121,132  121,115  121,101  121,057 
Capital surplus1,047,312  1,046,642  1,045,170  1,043,774  1,041,870 
Retained earnings613,826  557,889  520,888  499,502  477,972 
Common stock issued to deferred compensation trust, at cost(17,063) (16,969) (16,951) (16,776) (15,562)
Deferred compensation trust17,063  16,969  16,951  16,776  15,562 
Accumulated other comprehensive income (loss)17,969  41,184  44,569  43,218  12,301 
TOTAL SHAREHOLDERS’ EQUITY1,800,215  1,766,847  1,731,742  1,707,595  1,653,200 
Noncontrolling interest16,091  16,981  16,961  13,948  12,432 
TOTAL EQUITY1,816,306  1,783,828  1,748,703  1,721,543  1,665,632 
TOTAL LIABILITIES AND EQUITY$15,079,396  $14,626,444  $14,795,417  $15,580,258  $12,623,826 


 
 
TOWNEBANK
Consolidated Statements of Income - Five Quarter Trend (unaudited)
(dollars in thousands, except share data)
  
  
 Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
 2021 2020 2020 2020 2020
INTEREST INCOME:         
Loans, including fees$101,396  $104,182  $102,869  $102,139  $100,062 
Investment securities7,117  7,499  7,440  8,163  9,949 
Interest-bearing deposits in financial institutions and federal funds sold416  435  632  433  1,102 
Mortgage loans held for sale3,361  3,867  4,587  3,811  2,988 
Total interest income112,290  115,983  115,528  114,546  114,101 
INTEREST EXPENSE:         
Deposits8,548  10,762  12,966  15,072  19,062 
Advances from the FHLB497  1,404  1,901  2,595  2,492 
Subordinated debt2,930  2,962  2,962  2,962  2,962 
Repurchase agreements and other borrowings325  241  940  643  89 
Total interest expense12,300  15,369  18,769  21,272  24,605 
Net interest income99,990  100,614  96,759  93,274  89,496 
          
PROVISION FOR CREDIT LOSSES(4,027) 1,617  31,598  26,945  7,016 
Net interest income after provision for credit losses104,017  98,997  65,161  66,329  82,480 
NONINTEREST INCOME:         
Residential mortgage banking income, net37,412  37,504  37,531  29,715  7,416 
Insurance commissions and other title fees and income, net16,325  13,868  17,468  17,612  16,893 
Real estate brokerage and property management income, net17,934  9,229  11,301  10,781  6,938 
Service charges on deposit accounts2,190  1,707  1,986  1,888  2,440 
Credit card merchant fees, net1,302  1,377  1,506  1,109  1,179 
BOLI1,519  1,990  1,605  1,584  3,105 
Other income4,837  5,559  22,278  3,763  5,227 
Net gain/(loss) on investment securities1,000  —  1,701  2,930  5,002 
Total noninterest income82,519  71,234  95,376  69,382  48,200 
NONINTEREST EXPENSE:         
Salaries and employee benefits58,435  61,475  61,408  56,926  55,867 
Occupancy expense8,072  8,193  8,396  7,227  7,502 
Furniture and equipment3,512  3,462  3,247  3,564  3,640 
Amortization - intangibles2,723  2,797  2,851  2,901  2,950 
Software expense4,194  4,066  3,572  3,492  3,492 
Data processing3,239  2,363  3,113  2,718  2,791 
Professional fees2,339  2,591  2,637  2,972  3,067 
Advertising and marketing2,968  2,204  1,870  1,986  3,584 
Other expenses11,844  18,781  14,887  9,239  13,995 
Total noninterest expense97,326  105,932  101,981  91,025  96,888 
Income before income tax expense and noncontrolling interest89,210  64,299  58,556  44,686  33,792 
Provision for income tax expense16,579  10,408  7,841  7,464  6,187 
Net income72,631  53,891  50,715  37,222  27,605 
Net income attributable to noncontrolling interest(3,636) (3,809) (16,251) (2,617) (1,221)
Net income attributable to TowneBank$68,995  $50,082  $34,464  $34,605  $26,384 
Per common share information         
Basic earnings$0.95  $0.69  $0.48  $0.48  $0.37 
Diluted earnings$0.95  $0.69  $0.48  $0.48  $0.36 
Basic weighted average shares outstanding72,414,953  72,357,177  72,339,413  72,280,555  72,206,228 
Diluted weighted average shares outstanding72,517,008  72,455,096  72,375,736  72,317,988  72,299,721 
Cash dividends declared$0.18  $0.18  $0.18  $0.18  $0.18 
          
          


TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)
 
      
 Three Months Ended Increase/(Decrease)
 March 31, December 31, 2021 over 2020
 2021 2020 2020 Amount Percent
Revenue         
Net interest income$97,604  $87,406  $97,412  $10,198  11.67%
Service charges on deposit accounts2,190  2,440  1,707  (250) (10.25)%
Credit card merchant fees1,302  1,179  1,377  123  10.43%
Other income4,970  7,061  5,983  (2,091) (29.61)%
Subtotal8,462  10,680  9,067  (2,218) (20.77)%
Net gain/(loss) on investment securities1,000  5,002  —  (4,002) (80.01)%
Total noninterest income9,462  15,682  9,067  (6,220) (39.66)%
Total revenue107,066  103,088  106,479  3,978  3.86%
          
Provision for credit losses(3,401) 7,041  1,628  (10,442) (148.30)%
          
Expenses         
Salaries and employee benefits31,861  33,225  37,358  (1,364) (4.11)%
Occupancy expense5,546  4,916  5,681  630  12.82%
Furniture and equipment2,668  2,660  2,625  8  0.30%
Amortization of intangibles962  1,164  1,013  (202) (17.35)%
Other expenses14,050  18,705  19,892  (4,655) (24.89)%
Total expenses55,087  60,670  66,569  (5,583) (9.20)%
Income before income tax, corporate allocation and noncontrolling interest55,380  35,377  38,282  20,003  56.54%
Corporate allocation1,292  670  643  622  92.84%
Income before income tax provision and noncontrolling interest56,672  36,047  38,925  20,625  57.22%
Provision for income tax expense9,701  6,663  5,163  3,038  45.60%
Net income46,971  29,384  33,762  17,587  59.85%
Noncontrolling interest(5) (1) 4  (4) 400.00%
Net income attributable to TowneBank$46,966  $29,383  $33,766  $17,583  59.84%
          
Efficiency ratio (non-GAAP)51.03% 60.67% 61.57% (9.64)% (15.89)%


 
 
TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)
 
    
 Three Months Ended Increase/(Decrease)
 March 31, December 31, 2021 over 2020
 2021 2020 2020 Amount Percent
Revenue         
Residential mortgage brokerage income, net$37,877  $8,007  $38,040  $29,870  373.05%
Real estate brokerage income, net2,451  1,865  3,564  586  31.42%
Title insurance and settlement fees525  436  669  89  20.41%
Property management fees, net15,483  5,073  5,665  10,410  205.20%
Income from unconsolidated subsidiary406  186  398  220  118.28%
Net interest and other income2,736  2,396  3,627  340  14.19%
Total revenue59,478  17,963  51,963  41,515  231.11%
          
Provision for credit losses(626) (25) (11) (601) 2,404.00%
          
Expenses         
Salaries and employee benefits16,847  13,293  16,168  3,554  26.74%
Occupancy expense1,871  1,927  1,869  (56) (2.91)%
Furniture and equipment649  762  614  (113) (14.83)%
Amortization of intangible assets590  657  658  (67) (10.20)%
Other expenses9,229  6,867  8,779  2,362  34.40%
Total expenses29,186  23,506  28,088  5,680  24.16%
          
Income (loss) before income tax, corporate allocation and noncontrolling interest30,918  (5,518) 23,886  36,436  (660.31)%
Corporate allocation(1,000) (393) (403) (607) 154.45%
(Loss) income before income tax provision and noncontrolling interest29,918  (5,911) 23,483  35,829  (606.14)%
Provision for income tax (benefit) expense6,216  (1,292) 4,421  7,508  (581.11)%
Net (loss) income23,702  (4,619) 19,062  28,321  (613.14)%
Noncontrolling interest(3,631) (791) (3,813) (2,840) 359.04%
Net (loss) income attributable to TowneBank$20,071  $(5,410) $15,249  $25,481  (471.00)%
          
Efficiency ratio (non-GAAP)48.08% 127.20% 52.79% (79.12)% (62.20)%
          
          


TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)
 
      
 Three Months Ended Increase/(Decrease)
 March 31, December 31, 2021 over 2020
 2021 2020 2020 Amount Percent
Commission and fee income         
Property and casualty$14,189  $12,786  $11,942  $1,403  10.97%
Employee benefits3,884  3,918  3,725  (34) (0.87)%
Travel insurance—  1,266  —  (1,266) (100.00)%
Specialized benefit services167  168  175  (1) (0.60)%
Total commissions and fees18,240  18,138  15,842  102  0.56%
          
Contingency and bonus revenue1,759  2,022  1,087  (263) (13.01)%
Other income73  81  69  (8) (9.88)%
Total revenue20,072  20,241  16,998  (169) (0.83)%
          
Employee commission expense4,107  3,596  3,592  511  14.21%
Revenue, net of commission expense15,965  16,645  13,406  (680) (4.09)%
          
Salaries and employee benefits9,727  9,349  7,949  378  4.04%
Occupancy expense655  659  643  (4) (0.61)%
Furniture and equipment195  218  223  (23) (10.55)%
Amortization of intangible assets1,171  1,129  1,126  42  3.72%
Other expenses1,305  1,357  1,334  (52) (3.83)%
Total operating expenses13,053  12,712  11,275  341  2.68%
Income before income tax, corporate allocation and noncontrolling interest2,912  3,933  2,131  (1,021) (25.96)%
Corporate allocation(292) (277) (240) (15) 5.42%
Income before income tax provision and noncontrolling interest2,620  3,656  1,891  (1,036) (28.34)%
Provision for income tax expense662  816  824  (154) (18.87)%
Net income1,958  2,840  1,067  (882) (31.06)%
Noncontrolling interest—  (429) —  429  (100.00)%
Net income attributable to TowneBank$1,958  $2,411  $1,067  (453) (18.79)%
          
Provision for income taxes662  816  824  (154) (18.87)%
Depreciation, amortization and interest expense1,308  1,300  1,274  8  0.62%
EBITDA (non-GAAP)$3,928  $4,527  $3,165  $(599) (13.23)%
          
Efficiency ratio (non-GAAP)74.43% 69.59% 75.70% 4.84% 6.96%


 
 
TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
 
 Three Months Ended
 March 31, March 31, December 31,
 2021 2020 2020
      
Return on average assets (GAAP)1.92% 0.88% 1.35%
Impact of excluding average goodwill and other intangibles and amortization0.13% 0.12% 0.11%
Return on average tangible assets (non-GAAP)2.05% 1.00% 1.46%
      
Return on average equity (GAAP)15.56% 6.37% 11.26%
Impact of excluding average goodwill and other intangibles and amortization6.63% 3.54% 5.02%
Return on average tangible equity (non-GAAP)22.19% 9.91% 16.28%
      
Return on average common equity (GAAP)15.70% 6.42% 11.36%
Impact of excluding average goodwill and other intangibles and amortization6.75% 3.59% 5.12%
Return on average tangible common equity (non-GAAP)22.45% 10.01% 16.48%
      
Book value (GAAP)$24.78  $22.77  $24.31 
Impact of excluding average goodwill and other intangibles and amortization(6.84) (6.86) (6.85)
Tangible book value (non-GAAP)$17.94  $15.91  $17.46 
      
Efficiency ratio (GAAP)53.33% 70.36% 61.64%
Impact of exclusions(1.22)% 0.43% (1.62)%
Efficiency ratio (non-GAAP)52.11% 70.79% 60.02%
      
Average assets (GAAP)$14,592,416  $12,049,323  $14,722,385 
Less: average goodwill and intangible assets497,446  500,123  491,453 
Average tangible assets (non-GAAP)$14,094,970  $11,549,200  $14,230,932 
      
Average equity (GAAP)$1,797,767  $1,665,706  $1,768,906 
Less: average goodwill and intangible assets497,446  500,123  491,453 
Average tangible equity (non-GAAP)$1,300,321  $1,165,583  $1,277,453 
      
Average common equity (GAAP)$1,782,795  $1,653,676  $1,753,596 
Less: average goodwill and intangible assets497,446  500,123  491,453 
Average tangible common equity (non-GAAP)$1,285,349  $1,153,553  $1,262,143 
      
Net Income (GAAP)$68,995  $26,384  50,082 
Amortization of Intangibles, net of tax2,151  2,331  2,210 
Tangible net income (non-GAAP)$71,146  $28,715  $52,292 
      
Net Income (GAAP)$68,995  $26,384  $50,082 
Provision for credit losses(4,027) 7,016  1,617 
Provision for income tax16,579  6,187  10,408 
Pre-provision, pre-tax net revenues (non-GAAP)$81,547  $39,587  $62,107 
      
Total Revenue (GAAP)$182,509  $137,696  $171,848 
Net (gain)/loss on investment securities(1,000) (5,002) — 
Other nonrecurring (income) loss30  —  — 
Total Revenue for efficiency calculation (non-GAAP)$181,539  $132,694  $171,848 
      
Noninterest expense (GAAP)$97,326  $96,888  $105,932 
Less: Amortization of intangibles2,723  2,950  2,797 
Noninterest expense net of amortization (non-GAAP)$94,603  $93,938  $103,135