Exhibit No. | Description | |
3.1 | Bylaws of the Company, as amended. | |
99.1 | Press Release of Sterling Bancorp, dated January 27, 2015. |
DATE: January 27, 2015 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
3.1 | Bylaws of the Company, as amended. | |
99.1 | Press Release of Sterling Bancorp, dated January 27, 2015 |
Sterling Bancorp | |
400 Rella Boulevard | |
Montebello, NY 10901-4243 | |
News Release | T 845.369.8040 |
F 845.369.8255 | |
http://www.sterlingbancorp.com |
FOR IMMEDIATE RELEASE | |
January 27, 2015 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
▪ | Total revenue2 reached $74.2 million. |
▪ | Core net income was $19.6 million, which represented growth of 8% over the linked quarter. |
▪ | Tax equivalent net interest margin was 3.70%, compared to 3.77% in the linked quarter and 3.58% in the fourth calendar quarter of 2013. |
▪ | Total non-interest income excluding securities gains was $14.0 million, which represented 18.9% of total revenue2. |
▪ | Core total revenue1 grew 3.2% versus an increase in core non-interest expense of 1.9% over the linked quarter. |
▪ | Core operating efficiency ratio1 was 54.0%. |
▪ | Annualized commercial loan growth of 9.6% (end of period balances) and 19.9% (average balances) over the linked quarter. |
▪ | Core return on average tangible assets1 was 1.13%, compared to 1.06% in the linked quarter and 0.69% in the fourth calendar quarter of 2013. |
▪ | Core return on average tangible equity1 was 14.42%, compared to 13.81% in the linked quarter and 8.99% in the fourth calendar quarter of 2013. |
▪ | Signed a definitive agreement to merge with Hudson Valley Holding Corp; Sterling Bancorp will be the surviving entity. |
▪ | Fiscal year end to change from September 30 to December 31. |
• | Costs associated with the banking systems conversion of $1.4 million. The charges were recognized as other non-interest expense. |
• | A charge to exit certain facilities and financial center locations of $610 thousand, which was recognized in other non-interest expense. |
• | A charge incurred in connection with the change in fiscal year end of $465 thousand, which was recognized in other non-interest expense. |
• | Amortization of non-compete intangible assets of $859 thousand. |
• | Merger-related expense of $502 thousand incurred in connection with the pending merger with Hudson Valley. |
▪ | Total assets were $7.4 billion. |
▪ | Total loans, including loans held for sale, were $4.9 billion. |
▪ | Commercial and industrial loans (which includes traditional C&I, asset-based lending, payroll finance, factoring and warehouse lending) represented 44.6%, commercial real estate loans represented 38.3%, consumer and residential mortgage loans represented 15.2%, and acquisition, development and construction loans represented 2.0% of the total loan portfolio. |
▪ | Commercial loan growth, which includes commercial and industrial loans, commercial real estate loans and specialty lending businesses was $94.4 million for the quarter ended December 31, 2014, and represented annualized growth of 9.6% over the prior quarter. |
▪ | Securities, excluding FHLB and FRB stock, were $1.7 billion and represented 23.1% of total assets. |
▪ | Total deposits were $5.2 billion. |
▪ | Retail, commercial and municipal transaction, money market and savings deposits were $4.7 billion and represented 89.3% of total deposits. |
▪ | The allowance for loan losses was $42.4 million and represented 0.88% of total loans. Loans acquired in prior merger transactions were recorded at fair value at the acquisition date; a substantial portion of these loans continue to carry no allowance for loan losses. |
▪ | Tangible book value per share was $6.47. |
12/31/2014 | 9/30/2014 | 9/30/2013 | ||||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 121,520 | $ | 177,619 | $ | 113,090 | ||||||
Investment securities | 1,713,183 | 1,689,888 | 1,208,392 | |||||||||
Loans held for sale | 46,599 | 17,846 | 1,011 | |||||||||
Loans: | ||||||||||||
Residential mortgage | 529,766 | 570,431 | 400,009 | |||||||||
Commercial real estate | 1,842,821 | 1,817,576 | 1,277,037 | |||||||||
Commercial and industrial | 2,145,644 | 2,076,474 | 439,787 | |||||||||
Acquisition, development and construction | 96,995 | 92,149 | 102,494 | |||||||||
Consumer | 200,415 | 203,808 | 193,571 | |||||||||
Total loans, gross | 4,815,641 | 4,760,438 | 2,412,898 | |||||||||
Allowance for loan losses | (42,374 | ) | (40,612 | ) | (28,877 | ) | ||||||
Total loans, net | 4,773,267 | 4,719,826 | 2,384,021 | |||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 75,437 | 66,085 | 24,312 | |||||||||
Accrued interest receivable | 19,301 | 19,667 | 11,698 | |||||||||
Premises and equipment, net | 46,156 | 43,286 | 36,520 | |||||||||
Goodwill | 388,926 | 388,926 | 163,117 | |||||||||
Other intangibles | 43,332 | 45,278 | 5,891 | |||||||||
Bank owned life insurance | 150,522 | 119,486 | 60,914 | |||||||||
Other real estate owned | 5,867 | 7,580 | 6,022 | |||||||||
Other assets | 40,712 | 41,900 | 34,184 | |||||||||
Total assets | $ | 7,424,822 | $ | 7,337,387 | $ | 4,049,172 | ||||||
Liabilities: | ||||||||||||
Deposits | $ | 5,212,325 | $ | 5,298,654 | $ | 2,962,294 | ||||||
FHLB borrowings | 1,003,209 | 795,028 | 462,953 | |||||||||
Other borrowings | 9,846 | 45,639 | — | |||||||||
Senior notes | 98,498 | 98,402 | 98,033 | |||||||||
Mortgage escrow funds | 4,167 | 4,494 | 12,646 | |||||||||
Other liabilities | 121,577 | 134,032 | 30,380 | |||||||||
Total liabilities | 6,449,622 | 6,376,249 | 3,566,306 | |||||||||
Stockholders’ equity | 975,200 | 961,138 | 482,866 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,424,822 | $ | 7,337,387 | $ | 4,049,172 | ||||||
Shares of common stock outstanding at period end | 83,927,572 | 83,628,267 | 44,351,046 | |||||||||
Book value per share | $ | 11.62 | $ | 11.49 | $ | 10.89 | ||||||
Tangible book value per share | 6.47 | 6.30 | 7.08 |
For the Quarter Ended | ||||||||||||
12/31/2014 | 9/30/2014 | 12/31/2013 | ||||||||||
Interest and dividend income: | ||||||||||||
Loans and loan fees | $ | 56,869 | $ | 55,793 | $ | 43,288 | ||||||
Securities taxable | 7,413 | 7,587 | 6,903 | |||||||||
Securities non-taxable | 2,865 | 2,866 | 2,161 | |||||||||
Other earning assets | 940 | 863 | 359 | |||||||||
Total interest income | 68,087 | 67,109 | 52,711 | |||||||||
Interest expense: | ||||||||||||
Deposits | 2,818 | 2,421 | 1,834 | |||||||||
Borrowings | 5,032 | 5,055 | 5,001 | |||||||||
Total interest expense | 7,850 | 7,476 | 6,835 | |||||||||
Net interest income | 60,237 | 59,633 | 45,876 | |||||||||
Provision for loan losses | 3,000 | 5,350 | 3,000 | |||||||||
Net interest income after provision for loan losses | 57,237 | 54,283 | 42,876 | |||||||||
Non-interest income: | ||||||||||||
Accounts receivable / factoring commissions and other fees | 4,134 | 3,814 | 2,226 | |||||||||
Mortgage banking income | 2,858 | 2,160 | 1,616 | |||||||||
Deposit fees and service charges | 4,221 | 3,850 | 3,942 | |||||||||
Net (loss) gain on sale of securities | (43 | ) | 33 | (645 | ) | |||||||
Bank owned life insurance | 1,024 | 791 | 740 | |||||||||
Investment management fees | 403 | 446 | 540 | |||||||||
Other | 1,360 | 1,192 | 729 | |||||||||
Total non-interest income | 13,957 | 12,286 | 9,148 | |||||||||
Non-interest expense: | ||||||||||||
Compensation and benefits | 22,410 | 22,110 | 23,554 | |||||||||
Stock-based compensation plans | 1,146 | 1,006 | 991 | |||||||||
Occupancy and office operations | 7,245 | 7,148 | 6,333 | |||||||||
Amortization of intangible assets | 1,873 | 2,511 | 1,875 | |||||||||
FDIC insurance and regulatory assessments | 1,568 | 1,619 | 1,164 | |||||||||
Other real estate owned, net (income) expense | (81 | ) | 214 | 368 | ||||||||
Merger-related expenses | 502 | — | 9,068 | |||||||||
Other | 11,151 | 9,172 | 29,621 | |||||||||
Total non-interest expense | 45,814 | 43,780 | 72,974 | |||||||||
Income (loss) before income tax expense | 25,380 | 22,789 | (20,950 | ) | ||||||||
Income tax expense (benefit) | 8,376 | 6,452 | (6,948 | ) | ||||||||
Net income (loss) | $ | 17,004 | $ | 16,337 | $ | (14,002 | ) | |||||
Weighted average common shares: | ||||||||||||
Basic | 83,831,380 | 83,610,943 | 70,493,305 | |||||||||
Diluted | 84,194,916 | 83,883,461 | 70,493,305 | |||||||||
Earnings per common share: | ||||||||||||
Basic earnings per share | $ | 0.20 | $ | 0.20 | $ | (0.20 | ) | |||||
Diluted earnings per share | 0.20 | 0.19 | (0.20 | ) | ||||||||
Dividends declared per share | 0.07 | 0.07 | — | |||||||||
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | ||||||||||||||
Total assets | $ | 7,424,822 | $ | 7,337,387 | $ | 7,250,729 | $ | 6,924,419 | $ | 6,667,437 | |||||||||
Securities available for sale | 1,140,846 | 1,110,813 | 1,160,510 | 1,233,310 | 1,153,313 | ||||||||||||||
Securities held to maturity | 572,337 | 579,075 | 570,470 | 527,265 | 508,337 | ||||||||||||||
Loans, gross 1 | 4,815,641 | 4,760,438 | 4,558,624 | 4,244,354 | 4,127,141 | ||||||||||||||
Goodwill | 388,926 | 388,926 | 387,325 | 387,286 | 387,517 | ||||||||||||||
Other intangibles | 43,332 | 45,278 | 47,860 | 50,441 | 53,020 | ||||||||||||||
Deposits | 5,212,325 | 5,298,654 | 5,102,457 | 5,211,724 | 4,920,564 | ||||||||||||||
Municipal deposits (included above) | 883,350 | 992,761 | 824,522 | 926,618 | 673,656 | ||||||||||||||
Borrowings | 1,111,553 | 939,069 | 1,061,777 | 634,516 | 696,270 | ||||||||||||||
Stockholders’ equity | 975,200 | 961,138 | 953,433 | 936,466 | 925,109 | ||||||||||||||
Tangible equity | 542,942 | 526,934 | 518,248 | 498,739 | 484,572 | ||||||||||||||
Average Balances | |||||||||||||||||||
Total assets | $ | 7,340,332 | $ | 7,217,649 | $ | 7,048,328 | $ | 6,747,546 | $ | 6,013,816 | |||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 566,705 | 548,146 | 536,038 | 520,887 | 491,231 | ||||||||||||||
Commercial real estate | 1,850,168 | 1,736,441 | 1,680,242 | 1,580,454 | 1,466,986 | ||||||||||||||
Commercial and industrial | 2,038,784 | 1,966,359 | 1,805,048 | 1,625,720 | 1,268,492 | ||||||||||||||
Acquisition, development and construction | 95,727 | 97,863 | 94,804 | 93,531 | 98,691 | ||||||||||||||
Consumer | 204,631 | 202,940 | 199,626 | 199,834 | 200,637 | ||||||||||||||
Loans, total 1 | 4,756,015 | 4,580,178 | 4,315,758 | 4,042,702 | 3,526,037 | ||||||||||||||
Securities (taxable) | 1,355,104 | 1,349,126 | 1,444,507 | 1,386,538 | 1,330,646 | ||||||||||||||
Securities (non-taxable) | 366,017 | 361,766 | 339,417 | 324,470 | 250,520 | ||||||||||||||
Total earning assets | 6,598,178 | 6,430,467 | 6,265,883 | 5,985,054 | 5,207,436 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,626,341 | 1,636,583 | 1,681,169 | 1,640,125 | 1,361,622 | ||||||||||||||
Interest bearing demand | 756,217 | 732,699 | 712,051 | 761,409 | 619,746 | ||||||||||||||
Savings (including mortgage escrow funds) | 685,142 | 647,103 | 606,518 | 613,131 | 622,530 | ||||||||||||||
Money market | 1,817,091 | 1,566,669 | 1,625,335 | 1,461,774 | 1,182,858 | ||||||||||||||
Certificates of deposit | 457,996 | 520,899 | 549,201 | 582,580 | 565,462 | ||||||||||||||
Total deposits and mortgage escrow | 5,342,787 | 5,103,953 | 5,174,274 | 5,059,019 | 4,352,218 | ||||||||||||||
Borrowings | 902,299 | 1,064,137 | 820,607 | 660,486 | 709,125 | ||||||||||||||
Equity | 973,089 | 956,166 | 944,476 | 934,304 | 780,241 | ||||||||||||||
Tangible equity | 539,693 | 522,025 | 507,671 | 494,691 | 432,703 | ||||||||||||||
Condensed Tax Equivalent Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 68,087 | $ | 67,109 | $ | 65,761 | $ | 61,325 | $ | 52,711 | |||||||||
Tax equivalent adjustment* | 1,546 | 1,543 | 1,481 | 1,440 | 1,164 | ||||||||||||||
Interest expense | 7,850 | 7,476 | 7,310 | 7,297 | 6,835 | ||||||||||||||
Net interest income (tax equivalent) | 61,783 | 61,176 | 59,932 | 55,468 | 47,040 | ||||||||||||||
Provision for loan losses | 3,000 | 5,350 | 5,950 | 4,800 | 3,000 | ||||||||||||||
Net interest income after provision for loan losses | 58,783 | 55,826 | 53,982 | 50,668 | 44,040 | ||||||||||||||
Non-interest income | 13,957 | 12,286 | 13,471 | 12,415 | 9,148 | ||||||||||||||
Non-interest expense | 45,814 | 43,780 | 44,904 | 46,723 | 72,974 | ||||||||||||||
Income (loss) before income tax expense | 26,926 | 24,332 | 22,549 | 16,360 | (19,786 | ) | |||||||||||||
Income tax expense (benefit) (tax equivalent)* | 9,922 | 7,995 | 7,538 | 6,028 | (5,784 | ) | |||||||||||||
Net income (loss) | $ | 17,004 | $ | 16,337 | $ | 15,011 | $ | 10,332 | $ | (14,002 | ) | ||||||||
1 Does not reflect allowance for loan losses of $42,374, $40,612, $36,350, $32,015 and $30,612. | |||||||||||||||||||
*Tax exempt income assumed at a statutory 35% federal tax rate. |
For the Quarter Ended | |||||||||||||||||||
Per Share Data | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | ||||||||||||||
Basic earnings per share | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.12 | $ | (0.20 | ) | ||||||||
Diluted earnings per share | 0.20 | 0.19 | 0.18 | 0.12 | (0.20 | ) | |||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | — | ||||||||||||||
Tangible book value per share | 6.47 | 6.30 | 6.20 | 5.97 | 5.77 | ||||||||||||||
Shares of common stock outstanding | 83,927,572 | 83,628,267 | 83,600,529 | 83,544,307 | 83,955,647 | ||||||||||||||
Basic weighted average common shares outstanding | 83,831,380 | 83,610,943 | 83,580,050 | 83,497,765 | 70,493,305 | ||||||||||||||
Diluted weighted average common shares outstanding | 84,194,916 | 83,883,461 | 83,806,135 | 83,794,107 | 70,493,305 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | 0.92 | % | 0.90 | % | 0.85 | % | 0.62 | % | (0.92 | )% | |||||||||
Return on average equity | 6.93 | % | 6.78 | % | 6.37 | % | 4.48 | % | (7.12 | )% | |||||||||
Return on average tangible equity 1 | 12.50 | % | 12.42 | % | 11.86 | % | 8.47 | % | (12.84 | )% | |||||||||
Core operating efficiency 1 | 54.0 | % | 54.7 | % | 57.8 | % | 61.4 | % | 65.4 | % | |||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Yield on loans | 4.74 | % | 4.83 | % | 5.04 | % | 5.05 | % | 4.88 | % | |||||||||
Yield on investment securities - tax equivalent2 | 2.73 | % | 2.78 | % | 2.75 | % | 2.77 | % | 2.57 | % | |||||||||
Yield on earning assets - tax equivalent2 | 4.17 | % | 4.24 | % | 4.30 | % | 4.25 | % | 4.10 | % | |||||||||
Cost of deposits | 0.21 | % | 0.19 | % | 0.18 | % | 0.19 | % | 0.17 | % | |||||||||
Cost of borrowings | 2.21 | % | 1.88 | % | 2.44 | % | 3.01 | % | 2.80 | % | |||||||||
Cost of interest bearing liabilities | 0.67 | % | 0.65 | % | 0.68 | % | 0.73 | % | 0.73 | % | |||||||||
Net interest rate spread - tax equivalent basis2 | 3.50 | % | 3.59 | % | 3.62 | % | 3.52 | % | 3.37 | % | |||||||||
Net interest margin - tax equivalent basis2 | 3.70 | % | 3.77 | % | 3.84 | % | 3.76 | % | 3.58 | % | |||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Bank only | 9.38 | % | 9.34 | % | 9.42 | % | 9.83 | % | 10.58 | % | |||||||||
Tier 1 risk-based capital - Bank only | $ | 651,204 | $ | 636,327 | $ | 624,599 | $ | 622,878 | $ | 593,462 | |||||||||
Total risk-based capital - Bank only | 693,973 | 676,939 | 661,344 | 655,288 | 624,469 | ||||||||||||||
Tangible equity as a % of tangible assets - consolidated 1 | 7.76 | % | 7.63 | % | 7.60 | % | 7.69 | % | 7.78 | % | |||||||||
Asset Quality | |||||||||||||||||||
Non-performing loans (NPLs) non-accrual | $ | 45,859 | $ | 49,562 | $ | 53,153 | $ | 54,877 | $ | 35,597 | |||||||||
Non-performing loans (NPLs) still accruing | 783 | 1,401 | 3,645 | 5,394 | 2,845 | ||||||||||||||
Other real estate owned | 5,867 | 7,580 | 5,017 | 9,275 | 11,751 | ||||||||||||||
Non-performing assets (NPAs) | 52,509 | 58,543 | 61,815 | 69,546 | 50,193 | ||||||||||||||
Net charge-offs | 1,238 | 1,088 | 1,615 | 3,397 | 1,265 | ||||||||||||||
Net charge-offs as a % of average loans (annualized) | 0.10 | % | 0.09 | % | 0.15 | % | 0.34 | % | 0.14 | % | |||||||||
NPLs as a % of total loans | 0.97 | % | 1.07 | % | 1.25 | % | 1.42 | % | 0.93 | % | |||||||||
NPAs as a % of total assets | 0.71 | % | 0.80 | % | 0.85 | % | 1.00 | % | 0.75 | % | |||||||||
Allowance for loan losses as a % of NPLs | 90.8 | % | 79.7 | % | 64.0 | % | 53.1 | % | 79.6 | % | |||||||||
Allowance for loan losses as a % of total loans | 0.88 | % | 0.85 | % | 0.80 | % | 0.75 | % | 0.74 | % | |||||||||
Special mention loans | $ | 31,318 | $ | 39,553 | $ | 41,829 | $ | 39,964 | $ | 38,834 | |||||||||
Substandard / doubtful loans | 74,901 | 73,093 | 79,110 | 82,673 | 77,337 | ||||||||||||||
1 See reconciliation of non-GAAP measure on following page. | |||||||||||||||||||
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35% for all periods presented. |
As of and for the Quarter Ended | |||||||||||||||||||
12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | |||||||||||||||
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. | |||||||||||||||||||
The following table shows the reconciliation of stockholders’ equity to tangible equity and the tangible equity ratio: | |||||||||||||||||||
Total assets | $ | 7,424,822 | $ | 7,337,387 | $ | 7,250,729 | $ | 6,924,419 | $ | 6,667,437 | |||||||||
Goodwill and other intangibles | (432,258 | ) | (434,204 | ) | (435,185 | ) | (437,727 | ) | (440,537 | ) | |||||||||
Tangible assets | 6,992,564 | 6,903,183 | 6,815,544 | 6,486,692 | 6,226,900 | ||||||||||||||
Stockholders’ equity | 975,200 | 961,138 | 953,433 | 936,466 | 925,109 | ||||||||||||||
Goodwill and other intangibles | (432,258 | ) | (434,204 | ) | (435,185 | ) | (437,727 | ) | (440,537 | ) | |||||||||
Tangible stockholders’ equity | 542,942 | 526,934 | 518,248 | 498,739 | 484,572 | ||||||||||||||
Common stock outstanding at period end | 83,927,572 | 83,628,267 | 83,600,529 | 83,544,307 | 83,955,647 | ||||||||||||||
Tangible equity as a % of tangible assets | 7.76 | % | 7.63 | % | 7.60 | % | 7.69 | % | 7.78 | % | |||||||||
Tangible book value per share | $ | 6.47 | $ | 6.30 | $ | 6.20 | $ | 5.97 | $ | 5.77 | |||||||||
The Company believes that tangible equity is useful as a tool to help assess a company’s capital position. | |||||||||||||||||||
The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity: | |||||||||||||||||||
Average stockholders’ equity | $ | 973,089 | $ | 956,166 | $ | 944,476 | $ | 934,304 | $ | 780,241 | |||||||||
Average goodwill and other intangibles | (433,396 | ) | (434,141 | ) | (436,805 | ) | (439,613 | ) | (347,538 | ) | |||||||||
Average tangible stockholders’ equity | 539,693 | 522,025 | 507,671 | 494,691 | 432,703 | ||||||||||||||
Net income (loss) | 17,004 | 16,337 | 15,011 | 10,332 | (14,002 | ) | |||||||||||||
Net income (loss), if annualized | 67,462 | 64,815 | 60,209 | 41,902 | (55,551 | ) | |||||||||||||
Return on average tangible equity | 12.50 | % | 12.42 | % | 11.86 | % | 8.47 | % | (12.84 | )% | |||||||||
Core net income (see reconciliation on page 11) | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | $ | 9,805 | |||||||||
Annualized core net income | 77,820 | 72,072 | 63,033 | 53,103 | 38,900 | ||||||||||||||
Core return on average tangible equity | 14.42 | % | 13.81 | % | 12.42 | % | 10.73 | % | 8.99 | % | |||||||||
The Company believes that the return on average tangible stockholders’ equity is useful as a tool to help assess a company’s use of tangible equity. | |||||||||||||||||||
The following table shows the reconciliation of return on tangible assets and core return on tangible assets: | |||||||||||||||||||
Average assets | $ | 7,340,332 | $ | 7,217,649 | $ | 7,048,328 | $ | 6,747,546 | $ | 6,013,816 | |||||||||
Average goodwill and other intangibles | (433,396 | ) | (434,141 | ) | (436,805 | ) | (439,613 | ) | (347,538 | ) | |||||||||
Average tangible assets | 6,906,936 | 6,783,508 | 6,611,523 | 6,307,933 | 5,666,278 | ||||||||||||||
Net income (loss) | 17,004 | 16,337 | 15,011 | 10,332 | (14,002 | ) | |||||||||||||
Net income (loss), if annualized | 67,462 | 64,815 | 60,209 | 41,902 | (55,551 | ) | |||||||||||||
Return on average tangible assets | 0.98 | % | 0.96 | % | 0.91 | % | 0.66 | % | (0.98 | )% | |||||||||
Core net income (see reconciliation on page 11) | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | $ | 9,805 | |||||||||
Annualized core net income | 77,820 | 72,072 | 63,033 | 53,103 | 38,900 | ||||||||||||||
Core return on average tangible assets | 1.13 | % | 1.06 | % | 0.95 | % | 0.84 | % | 0.69 | % | |||||||||
The Company believes that the core return on average tangible assets is a useful tool to help assess the Company’s profitability. |
As of and for the Quarter Ended | ||||||||||||||||||||
12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | ||||||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio: | ||||||||||||||||||||
Net interest income | $ | 60,237 | $ | 59,633 | $ | 58,451 | $ | 54,028 | $ | 45,876 | ||||||||||
Non-interest income | 13,957 | 12,286 | 13,471 | 12,415 | 9,148 | |||||||||||||||
Total net revenue | 74,194 | 71,919 | 71,922 | 66,443 | 55,024 | |||||||||||||||
Tax equivalent adjustment on securities interest income | 1,546 | 1,543 | 1,481 | 1,440 | 1,164 | |||||||||||||||
Net loss (gain) on sale of securities | 43 | (33 | ) | (1,193 | ) | (60 | ) | 645 | ||||||||||||
Other (other gains and fair value loss on interest rate caps) | — | — | — | — | (93 | ) | ||||||||||||||
Core total revenue | 75,783 | 73,429 | 72,210 | 67,823 | 56,740 | |||||||||||||||
Non-interest expense | 45,814 | 43,780 | 44,904 | 46,723 | 72,974 | |||||||||||||||
Merger-related expense | (502 | ) | — | — | (388 | ) | (9,068 | ) | ||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (2,493 | ) | (1,103 | ) | (2,321 | ) | (678 | ) | (22,167 | ) | ||||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | — | — | 1,637 | — | — | |||||||||||||||
Charge on benefit plan settlement | — | — | — | (1,486 | ) | (2,743 | ) | |||||||||||||
Amortization of intangible assets | (1,873 | ) | (2,511 | ) | (2,511 | ) | (2,511 | ) | (1,875 | ) | ||||||||||
Core non-interest expense | 40,946 | 40,166 | 41,709 | 41,660 | 37,121 | |||||||||||||||
Core operating efficiency ratio | 54.0 | % | 54.7 | % | 57.8 | % | 61.4 | % | 65.4 | % | ||||||||||
The Company believes the core operating efficiency ratio is a useful tool to help assess the Company’s core operating performance. | ||||||||||||||||||||
The following table shows the reconciliation of core net income and core earnings per share: | ||||||||||||||||||||
Income (loss) before income tax expense | $ | 25,380 | $ | 22,789 | $ | 21,068 | $ | 14,920 | $ | (20,950 | ) | |||||||||
Income tax expense (benefit) | 8,376 | 6,452 | 6,057 | 4,588 | (6,948 | ) | ||||||||||||||
Net income (loss) | 17,004 | 16,337 | 15,011 | 10,332 | (14,002 | ) | ||||||||||||||
Net loss (gain) on sale of securities | 43 | (33 | ) | (1,193 | ) | (60 | ) | 645 | ||||||||||||
Merger-related expense | 502 | — | — | 388 | 9,068 | |||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 2,493 | 1,103 | 2,321 | 678 | 22,167 | |||||||||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | — | — | (1,637 | ) | — | — | ||||||||||||||
Charge on benefit plan settlement | — | — | — | 1,486 | 2,743 | |||||||||||||||
Amortization of non-compete agreements | 859 | 1,497 | 1,497 | 1,497 | 998 | |||||||||||||||
Total charges | 3,897 | 2,567 | 988 | 3,989 | 35,621 | |||||||||||||||
Income tax (benefit) | (1,286 | ) | (738 | ) | (284 | ) | (1,227 | ) | (11,814 | ) | ||||||||||
Total non-core charges net of taxes | 2,611 | 1,829 | 704 | 2,762 | 23,807 | |||||||||||||||
Core net income | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | $ | 9,805 | ||||||||||
Weighted average diluted shares1 | 84,194,916 | 83,883,461 | 83,806,135 | 83,794,107 | 70,493,305 | |||||||||||||||
Diluted EPS as reported | $ | 0.20 | $ | 0.19 | $ | 0.18 | $ | 0.12 | $ | (0.20 | ) | |||||||||
Core diluted EPS (excluding total charges) | 0.23 | 0.22 | 0.19 | 0.16 | 0.14 | |||||||||||||||
The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess the Company’s profitability. | ||||||||||||||||||||
1 For the quarter ended December 31, 2013, represents diluted share calculation to compute diluted EPS assuming net income. |
For the fiscal year ended | |||||||||||||
9/30/2014 | 9/30/2013 | ||||||||||||
The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity: | |||||||||||||
Average stockholders’ equity | $ | 906,134 | $ | 489,412 | |||||||||
Average goodwill and other intangibles | (414,326 | ) | (170,364 | ) | |||||||||
Average tangible stockholders’ equity | 491,808 | 319,048 | |||||||||||
Net income (loss) | 17,004 | 27,678 | |||||||||||
Return on average tangible equity | 5.63 | % | 7.92 | % | |||||||||
Core net income (see reconciliation on page 13) | $ | 19,615 | $ | 57,842 | |||||||||
Core return on average tangible equity | 11.76 | % | 7.04 | % | |||||||||
The Company believes that the return on average tangible stockholders’ equity is useful as a tool to help assess a company’s use of tangible equity. | |||||||||||||
The following table shows the reconciliation of return on tangible assets and core return on tangible assets: | |||||||||||||
Average assets | $ | 6,757,094 | $ | 3,815,609 | |||||||||
Average goodwill and other intangibles | (414,326 | ) | (170,364 | ) | |||||||||
Average tangible assets | 6,342,768 | 3,645,245 | |||||||||||
Net income (loss) | 17,004 | 27,678 | |||||||||||
Return on average tangible assets | 0.44 | % | 0.69 | % | |||||||||
Core net income (see reconciliation on page 13) | $ | 19,615 | $ | 57,842 | |||||||||
Core return on average tangible assets | 0.91 | % | 0.62 | % | |||||||||
The company believes that the core return on average tangible assets is a useful tool to help assess the Company’s profitability. |
For the fiscal year ended | |||||||||||||
9/30/2014 | 9/30/2013 | ||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio: | |||||||||||||
Net interest income | $ | 60,237 | $ | 217,988 | |||||||||
Non-interest income | 13,957 | 47,370 | |||||||||||
Total net revenue | 74,194 | 265,358 | |||||||||||
Tax equivalent adjustment on securities interest income | 1,546 | 5,628 | |||||||||||
Net (gain) on sale of securities | 43 | (641 | ) | ||||||||||
Other (other gains and fair value loss on interest rate caps) | (93 | ) | |||||||||||
Core total revenue | 258,996 | 129,517 | |||||||||||
Non-interest expense | 45,814 | 208,428 | |||||||||||
Merger-related expense | (502 | ) | (9,455 | ) | |||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (2,493 | ) | (26,590 | ) | |||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | 1,637 | ||||||||||||
Charge on benefit plan settlement | (4,095 | ) | |||||||||||
Amortization of intangible assets | (1,873 | ) | (9,408 | ) | |||||||||
Core non-interest expense | 160,517 | 86,409 | |||||||||||
Core operating efficiency ratio | 62.0 | % | 66.7 | % | |||||||||
The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess the Company’s profitability. | |||||||||||||
The following table shows the reconciliation of core net income and core earnings per share: | |||||||||||||
Income before income tax expense | $ | 25,380 | $ | 37,830 | |||||||||
Income tax expense | 8,376 | 10,152 | |||||||||||
Net income | 17,004 | 27,678 | |||||||||||
Net (gain) on sale of securities | 43 | (7,359 | ) | ||||||||||
Merger-related expense | 502 | 2,772 | |||||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | — | ||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 2,493 | 588 | |||||||||||
Charge on benefit plan settlement | 4,095 | — | |||||||||||
Amortization of non-compete agreements | 859 | — | |||||||||||
Total charges (gains) | 7,992 | (3,999 | ) | ||||||||||
Income tax (benefit) | (1,286 | ) | 1,245 | ||||||||||
Total non-core charges (gains) net of taxes | 6,706 | (2,754 | ) | ||||||||||
Core net income | $ | 23,710 | $ | 24,924 | |||||||||
Weighted average diluted shares | 84,194,916 | 80,534,043 | |||||||||||
Diluted EPS as reported | $ | 0.20 | $ | 0.34 | |||||||||
Core diluted EPS (excluding total charges) | 0.28 | 0.31 | |||||||||||