Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated April 29, 2015. |
DATE: April 29, 2015 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 | Press Release of Sterling Bancorp, dated April 29, 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 | |
April 29, 2015 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
▪ | Total revenue2 was $71.3 million. |
▪ | Core net income1 was $18.5 million, which represented growth of 41.3% over the same quarter a year ago. |
▪ | Tax equivalent net interest margin was 3.64%, compared to 3.76% in the first quarter of 2014. |
▪ | Total non-interest income excluding securities gains was $12.5 million, which represented 17.5% of total revenue2. |
▪ | Core total revenue1 grew 7.5% and core non-interest expense1 declined 1.4% over the same quarter a year ago. |
▪ | Core operating efficiency ratio1 was 56.4%. |
▪ | Commercial loan growth was 20.6% over a year ago and 16.3% annualized over the linked quarter. |
▪ | Core return on average tangible assets1 was 1.07%, compared to 0.84% in the first quarter of 2014. |
▪ | Core return on average tangible equity1 was 12.66%, compared to 10.73% in the first quarter of 2014. |
▪ | Completed an $89.7 million gross offering of common equity; successfully closed acquisition of Damian Services Corporation. |
▪ | Changed fiscal year end from September 30 to December 31. |
▪ | Total assets were $7.7 billion. |
▪ | Total loans, including loans held for sale, were $5.0 billion. |
▪ | Commercial and industrial loans (which includes traditional C&I, asset-based lending, payroll finance, factoring, warehouse lending and equipment finance) represented 45.2%; commercial real estate loans represented 38.8%; consumer and residential mortgage loans represented 14.1%; and acquisition, development and construction loans represented 1.9% of total portfolio loans. |
▪ | Commercial loan growth, which includes commercial and industrial loans, commercial real estate loans and specialty lending businesses was $160.9 million for the quarter ended March 31, 2015, and represented annualized growth of 16.3% over the prior quarter. |
▪ | Securities, excluding FHLB and FRB stock, were $1.8 billion and represented 23.3% of total assets. |
▪ | Total deposits were $5.6 billion. |
▪ | Retail, commercial and municipal transaction, money market and savings deposits were $5.0 billion and represented 89.2% of total deposits. |
▪ | The allowance for loan losses was $42.9 million and represented 0.87% of total portfolio 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 $6.89. |
3/31/2015 | 12/31/2014 | 3/31/2014 | ||||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 186,701 | $ | 121,520 | $ | 164,645 | ||||||
Investment securities | 1,800,037 | 1,713,183 | 1,760,575 | |||||||||
Loans held for sale | 53,737 | 46,599 | 21,348 | |||||||||
Loans: | ||||||||||||
Residential mortgage | 494,106 | 529,766 | 512,875 | |||||||||
Commercial real estate | 1,916,937 | 1,842,821 | 1,614,002 | |||||||||
Commercial and industrial | 2,232,442 | 2,145,644 | 1,827,374 | |||||||||
Acquisition, development and construction | 95,567 | 96,995 | 90,905 | |||||||||
Consumer | 199,854 | 200,415 | 199,198 | |||||||||
Total portfolio loans | 4,938,906 | 4,815,641 | 4,244,354 | |||||||||
Allowance for loan losses | (42,884 | ) | (42,374 | ) | (32,015 | ) | ||||||
Total loans, net | 4,896,022 | 4,773,267 | 4,212,339 | |||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 68,864 | 75,437 | 53,346 | |||||||||
Accrued interest receivable | 21,367 | 19,301 | 18,154 | |||||||||
Premises and equipment, net | 45,076 | 46,156 | 49,041 | |||||||||
Goodwill | 400,941 | 388,926 | 387,286 | |||||||||
Other intangibles | 51,757 | 43,332 | 50,441 | |||||||||
Bank owned life insurance | 151,323 | 150,522 | 117,572 | |||||||||
Other real estate owned | 8,231 | 5,867 | 9,275 | |||||||||
Other assets | 43,459 | 40,712 | 80,397 | |||||||||
Total assets | $ | 7,727,515 | $ | 7,424,822 | $ | 6,924,419 | ||||||
Liabilities: | ||||||||||||
Deposits | $ | 5,555,946 | $ | 5,212,325 | $ | 5,211,724 | ||||||
FHLB borrowings | 857,138 | 1,003,209 | 489,801 | |||||||||
Other borrowings | 25,245 | 9,846 | 19,991 | |||||||||
Senior notes | 98,595 | 98,498 | 98,215 | |||||||||
Subordinated debentures | — | — | 26,509 | |||||||||
Mortgage escrow funds | 5,805 | 4,167 | 8,711 | |||||||||
Other liabilities | 104,243 | 121,577 | 133,002 | |||||||||
Total liabilities | 6,646,972 | 6,449,622 | 5,987,953 | |||||||||
Stockholders’ equity | 1,080,543 | 975,200 | 936,466 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,727,515 | $ | 7,424,822 | $ | 6,924,419 | ||||||
Shares of common stock outstanding at period end | 91,121,531 | 83,927,572 | 83,544,307 | |||||||||
Book value per share | $ | 11.86 | $ | 11.62 | $ | 11.21 | ||||||
Tangible book value per share | 6.89 | 6.47 | 5.97 |
For the Quarter Ended | ||||||||||||
3/31/2015 | 12/31/2014 | 3/31/2014 | ||||||||||
Interest and dividend income: | ||||||||||||
Loans and loan fees | $ | 55,271 | $ | 56,869 | $ | 50,312 | ||||||
Securities taxable | 7,632 | 7,413 | 7,573 | |||||||||
Securities non-taxable | 2,867 | 2,865 | 2,674 | |||||||||
Other earning assets | 902 | 940 | 766 | |||||||||
Total interest income | 66,672 | 68,087 | 61,325 | |||||||||
Interest expense: | ||||||||||||
Deposits | 3,091 | 2,818 | 2,394 | |||||||||
Borrowings | 4,714 | 5,032 | 4,903 | |||||||||
Total interest expense | 7,805 | 7,850 | 7,297 | |||||||||
Net interest income | 58,867 | 60,237 | 54,028 | |||||||||
Provision for loan losses | 2,100 | 3,000 | 4,800 | |||||||||
Net interest income after provision for loan losses | 56,767 | 57,237 | 49,228 | |||||||||
Non-interest income: | ||||||||||||
Accounts receivable / factoring commissions and other fees | 3,502 | 4,134 | 3,500 | |||||||||
Mortgage banking income | 3,157 | 2,858 | 2,383 | |||||||||
Deposit fees and service charges | 3,622 | 4,221 | 3,904 | |||||||||
Net gain (loss) on sale of securities | 1,534 | (43 | ) | 60 | ||||||||
Bank owned life insurance | 1,076 | 1,024 | 729 | |||||||||
Investment management fees | 360 | 403 | 542 | |||||||||
Other | 759 | 1,360 | 1,297 | |||||||||
Total non-interest income | 14,010 | 13,957 | 12,415 | |||||||||
Non-interest expense: | ||||||||||||
Compensation and benefits | 23,165 | 22,410 | 25,263 | |||||||||
Stock-based compensation plans | 1,109 | 1,146 | 927 | |||||||||
Occupancy and office operations | 6,580 | 7,245 | 7,254 | |||||||||
Amortization of intangible assets | 1,399 | 1,873 | 2,511 | |||||||||
FDIC insurance and regulatory assessments | 1,428 | 1,568 | 1,567 | |||||||||
Other real estate owned, net (income) expense | (37 | ) | (81 | ) | 61 | |||||||
Merger-related expense | 2,455 | 502 | 388 | |||||||||
Other | 9,822 | 11,151 | 8,752 | |||||||||
Total non-interest expense | 45,921 | 45,814 | 46,723 | |||||||||
Income before income tax expense | 24,856 | 25,380 | 14,920 | |||||||||
Income tax expense | 8,078 | 8,376 | 4,588 | |||||||||
Net income | $ | 16,778 | $ | 17,004 | $ | 10,332 | ||||||
Weighted average common shares: | ||||||||||||
Basic | 87,839,029 | 83,831,380 | 83,497,765 | |||||||||
Diluted | 88,252,768 | 84,194,916 | 83,794,107 | |||||||||
Earnings per common share: | ||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.20 | $ | 0.12 | ||||||
Diluted earnings per share | 0.19 | 0.20 | 0.12 | |||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 |
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | ||||||||||||||
Total assets | $ | 7,727,515 | $ | 7,424,822 | $ | 7,337,387 | $ | 7,250,729 | $ | 6,924,419 | |||||||||
Securities available for sale | 1,214,404 | 1,140,846 | 1,110,813 | 1,160,510 | 1,233,310 | ||||||||||||||
Securities held to maturity | 585,633 | 572,337 | 579,075 | 570,470 | 527,265 | ||||||||||||||
Total portfolio loans | 4,938,906 | 4,815,641 | 4,760,438 | 4,558,624 | 4,244,354 | ||||||||||||||
Goodwill | 400,941 | 388,926 | 388,926 | 387,325 | 387,286 | ||||||||||||||
Other intangibles | 51,757 | 43,332 | 45,278 | 47,860 | 50,441 | ||||||||||||||
Deposits | 5,555,946 | 5,212,325 | 5,298,654 | 5,102,457 | 5,211,724 | ||||||||||||||
Municipal deposits (included above) | 1,013,835 | 883,350 | 992,761 | 824,522 | 926,618 | ||||||||||||||
Borrowings | 980,978 | 1,111,553 | 939,069 | 1,061,777 | 634,516 | ||||||||||||||
Stockholders’ equity | 1,080,543 | 975,200 | 961,138 | 953,433 | 936,466 | ||||||||||||||
Tangible equity | 627,845 | 542,942 | 526,934 | 518,248 | 498,739 | ||||||||||||||
Average Balances | |||||||||||||||||||
Total assets | $ | 7,438,314 | $ | 7,340,332 | $ | 7,217,649 | $ | 7,048,328 | $ | 6,747,546 | |||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 531,421 | 566,705 | 548,146 | 536,038 | 520,887 | ||||||||||||||
Commercial real estate | 1,908,582 | 1,850,168 | 1,736,441 | 1,680,242 | 1,580,454 | ||||||||||||||
Commercial and industrial | 2,068,394 | 2,038,784 | 1,966,359 | 1,805,048 | 1,625,720 | ||||||||||||||
Acquisition, development and construction | 97,865 | 95,727 | 97,863 | 94,804 | 93,531 | ||||||||||||||
Consumer | 200,504 | 204,631 | 202,940 | 199,626 | 199,834 | ||||||||||||||
Loans, total 1 | 4,806,766 | 4,756,015 | 4,580,178 | 4,315,758 | 4,042,702 | ||||||||||||||
Securities (taxable) | 1,379,861 | 1,355,104 | 1,349,126 | 1,444,507 | 1,386,538 | ||||||||||||||
Securities (non-taxable) | 368,326 | 366,017 | 361,766 | 339,417 | 324,470 | ||||||||||||||
Total earning assets | 6,736,422 | 6,629,115 | 6,430,467 | 6,265,883 | 5,985,054 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,503,692 | 1,626,341 | 1,636,583 | 1,681,169 | 1,640,125 | ||||||||||||||
Interest bearing demand | 775,714 | 756,217 | 732,699 | 712,051 | 761,409 | ||||||||||||||
Savings (including mortgage escrow funds) | 766,448 | 685,142 | 647,103 | 606,518 | 613,131 | ||||||||||||||
Money market | 1,851,839 | 1,817,091 | 1,566,669 | 1,625,335 | 1,461,774 | ||||||||||||||
Certificates of deposit | 452,594 | 457,996 | 520,899 | 549,201 | 582,580 | ||||||||||||||
Total deposits and mortgage escrow | 5,350,287 | 5,342,787 | 5,103,953 | 5,174,274 | 5,059,019 | ||||||||||||||
Borrowings | 955,677 | 902,299 | 1,064,137 | 820,607 | 660,486 | ||||||||||||||
Equity | 1,031,809 | 973,089 | 956,166 | 944,476 | 934,304 | ||||||||||||||
Tangible equity | 592,839 | 539,693 | 522,025 | 507,671 | 494,691 | ||||||||||||||
Condensed Tax Equivalent Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 66,672 | $ | 68,087 | $ | 67,109 | $ | 65,761 | $ | 61,325 | |||||||||
Tax equivalent adjustment* | 1,544 | 1,546 | 1,543 | 1,481 | 1,440 | ||||||||||||||
Interest expense | 7,805 | 7,850 | 7,476 | 7,310 | 7,297 | ||||||||||||||
Net interest income (tax equivalent) | 60,411 | 61,783 | 61,176 | 59,932 | 55,468 | ||||||||||||||
Provision for loan losses | 2,100 | 3,000 | 5,350 | 5,950 | 4,800 | ||||||||||||||
Net interest income after provision for loan losses | 58,311 | 58,783 | 55,826 | 53,982 | 50,668 | ||||||||||||||
Non-interest income | 14,010 | 13,957 | 12,286 | 13,471 | 12,415 | ||||||||||||||
Non-interest expense | 45,921 | 45,814 | 43,780 | 44,904 | 46,723 | ||||||||||||||
Income before income tax expense | 26,400 | 26,926 | 24,332 | 22,549 | 16,360 | ||||||||||||||
Income tax expense (tax equivalent)* | 9,622 | 9,922 | 7,995 | 7,538 | 6,028 | ||||||||||||||
Net income | $ | 16,778 | $ | 17,004 | $ | 16,337 | $ | 15,011 | $ | 10,332 | |||||||||
1 Includes loans held for sale, excludes allowance for loan losses. | |||||||||||||||||||
*Tax exempt income assumed at a statutory 35% federal tax rate. |
For the Quarter Ended | |||||||||||||||||||
Per Share Data | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | ||||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.12 | |||||||||
Diluted earnings per share | 0.19 | 0.20 | 0.19 | 0.18 | 0.12 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Tangible book value per share | 6.89 | 6.47 | 6.30 | 6.20 | 5.97 | ||||||||||||||
Shares of common stock outstanding | 91,121,531 | 83,927,572 | 83,628,267 | 83,600,529 | 83,544,307 | ||||||||||||||
Basic weighted average common shares outstanding | 87,839,029 | 83,831,380 | 83,610,943 | 83,580,050 | 83,497,765 | ||||||||||||||
Diluted weighted average common shares outstanding | 88,252,768 | 84,194,916 | 83,883,461 | 83,806,135 | 83,794,107 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | 0.91 | % | 0.92 | % | 0.90 | % | 0.85 | % | 0.62 | % | |||||||||
Return on average equity | 6.59 | % | 6.93 | % | 6.78 | % | 6.37 | % | 4.48 | % | |||||||||
Return on average tangible equity 1 | 11.48 | % | 12.50 | % | 12.42 | % | 11.86 | % | 8.47 | % | |||||||||
Core operating efficiency 1 | 56.4 | % | 54.0 | % | 54.7 | % | 57.8 | % | 61.4 | % | |||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Yield on loans | 4.66 | % | 4.74 | % | 4.83 | % | 5.04 | % | 5.05 | % | |||||||||
Yield on investment securities - tax equivalent2 | 2.79 | % | 2.73 | % | 2.78 | % | 2.75 | % | 2.77 | % | |||||||||
Yield on earning assets - tax equivalent2 | 4.11 | % | 4.17 | % | 4.24 | % | 4.30 | % | 4.25 | % | |||||||||
Cost of deposits | 0.23 | % | 0.21 | % | 0.19 | % | 0.18 | % | 0.19 | % | |||||||||
Cost of borrowings | 2.00 | % | 2.21 | % | 1.88 | % | 2.44 | % | 3.01 | % | |||||||||
Cost of interest bearing liabilities | 0.66 | % | 0.67 | % | 0.65 | % | 0.68 | % | 0.73 | % | |||||||||
Net interest rate spread - tax equivalent basis2 | 3.45 | % | 3.50 | % | 3.59 | % | 3.62 | % | 3.52 | % | |||||||||
Net interest margin - tax equivalent basis2 | 3.64 | % | 3.70 | % | 3.77 | % | 3.84 | % | 3.76 | % | |||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company (estimated) | 9.46 | % | 8.21 | % | 8.12 | % | 8.14 | % | 8.72 | % | |||||||||
Tier 1 leverage ratio - Bank only (estimated) | 10.55 | % | 9.38 | % | 9.34 | % | 9.42 | % | 9.83 | % | |||||||||
Tier 1 risk-based capital - Bank only (estimated) | $ | 739,580 | $ | 651,204 | $ | 636,327 | $ | 624,599 | $ | 622,878 | |||||||||
Total risk-based capital - Bank only (estimated) | 782,859 | 693,973 | 676,939 | 661,344 | 655,288 | ||||||||||||||
Tangible equity as a % of tangible assets - consolidated 1 | 8.63 | % | 7.76 | % | 7.63 | % | 7.60 | % | 7.69 | % | |||||||||
Asset Quality | |||||||||||||||||||
Non-performing loans (NPLs) non-accrual | $ | 45,476 | $ | 45,859 | $ | 49,562 | $ | 53,153 | $ | 54,877 | |||||||||
Non-performing loans (NPLs) still accruing | 972 | 783 | 1,401 | 3,645 | 5,394 | ||||||||||||||
Other real estate owned | 8,231 | 5,867 | 7,580 | 5,017 | 9,275 | ||||||||||||||
Non-performing assets (NPAs) | 54,679 | 52,509 | 58,543 | 61,815 | 69,546 | ||||||||||||||
Net charge-offs | 1,590 | 1,238 | 1,088 | 1,615 | 3,397 | ||||||||||||||
Net charge-offs as a % of average loans (annualized) | 0.13 | % | 0.10 | % | 0.09 | % | 0.15 | % | 0.34 | % | |||||||||
NPLs as a % of total loans | 0.94 | % | 0.97 | % | 1.07 | % | 1.25 | % | 1.42 | % | |||||||||
NPAs as a % of total assets | 0.71 | % | 0.71 | % | 0.80 | % | 0.85 | % | 1.00 | % | |||||||||
Allowance for loan losses as a % of NPLs | 92.3 | % | 90.8 | % | 79.7 | % | 64.0 | % | 53.1 | % | |||||||||
Allowance for loan losses as a % of total loans | 0.87 | % | 0.88 | % | 0.85 | % | 0.80 | % | 0.75 | % | |||||||||
Special mention loans | $ | 26,057 | $ | 31,318 | $ | 39,553 | $ | 41,829 | $ | 39,964 | |||||||||
Substandard / doubtful loans | 74,252 | 74,901 | 73,093 | 79,110 | 82,673 | ||||||||||||||
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 | |||||||||||||||||||
3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||||
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 | $ | 7,727,515 | $ | 7,424,822 | $ | 7,337,387 | $ | 7,250,729 | $ | 6,924,419 | |||||||||
Goodwill and other intangibles | (452,698 | ) | (432,258 | ) | (434,204 | ) | (435,185 | ) | (437,727 | ) | |||||||||
Tangible assets | 7,274,817 | 6,992,564 | 6,903,183 | 6,815,544 | 6,486,692 | ||||||||||||||
Stockholders’ equity | 1,080,543 | 975,200 | 961,138 | 953,433 | 936,466 | ||||||||||||||
Goodwill and other intangibles | (452,698 | ) | (432,258 | ) | (434,204 | ) | (435,185 | ) | (437,727 | ) | |||||||||
Tangible stockholders’ equity | 627,845 | 542,942 | 526,934 | 518,248 | 498,739 | ||||||||||||||
Common stock outstanding at period end | 91,121,531 | 83,927,572 | 83,628,267 | 83,600,529 | 83,544,307 | ||||||||||||||
Tangible equity as a % of tangible assets | 8.63 | % | 7.76 | % | 7.63 | % | 7.60 | % | 7.69 | % | |||||||||
Tangible book value per share | $ | 6.89 | $ | 6.47 | $ | 6.30 | $ | 6.20 | $ | 5.97 | |||||||||
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 | $ | 1,031,809 | $ | 973,089 | $ | 956,166 | $ | 944,476 | $ | 934,304 | |||||||||
Average goodwill and other intangibles | (438,970 | ) | (433,396 | ) | (434,141 | ) | (436,805 | ) | (439,613 | ) | |||||||||
Average tangible stockholders’ equity | 592,839 | 539,693 | 522,025 | 507,671 | 494,691 | ||||||||||||||
Net income (loss) | 16,778 | 17,004 | 16,337 | 15,011 | 10,332 | ||||||||||||||
Net income (loss), if annualized | 68,044 | 67,462 | 64,815 | 60,209 | 41,902 | ||||||||||||||
Return on average tangible equity | 11.48 | % | 12.50 | % | 12.42 | % | 11.86 | % | 8.47 | % | |||||||||
Core net income (see reconciliation on page 11) | $ | 18,501 | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | |||||||||
Annualized core net income | 75,032 | 77,820 | 72,072 | 63,033 | 53,103 | ||||||||||||||
Core return on average tangible equity | 12.66 | % | 14.42 | % | 13.81 | % | 12.42 | % | 10.73 | % | |||||||||
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 | $ | 7,438,314 | $ | 7,340,332 | $ | 7,217,649 | $ | 7,048,328 | $ | 6,747,546 | |||||||||
Average goodwill and other intangibles | (438,970 | ) | (433,396 | ) | (434,141 | ) | (436,805 | ) | (439,613 | ) | |||||||||
Average tangible assets | 6,999,344 | 6,906,936 | 6,783,508 | 6,611,523 | 6,307,933 | ||||||||||||||
Net income (loss) | 16,778 | 17,004 | 16,337 | 15,011 | 10,332 | ||||||||||||||
Net income (loss), if annualized | 68,044 | 67,462 | 64,815 | 60,209 | 41,902 | ||||||||||||||
Return on average tangible assets | 0.97 | % | 0.98 | % | 0.96 | % | 0.91 | % | 0.66 | % | |||||||||
Core net income (see reconciliation on page 11) | $ | 18,501 | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | |||||||||
Annualized core net income | 75,032 | 77,820 | 72,072 | 63,033 | 53,103 | ||||||||||||||
Core return on average tangible assets | 1.07 | % | 1.13 | % | 1.06 | % | 0.95 | % | 0.84 | % | |||||||||
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 | ||||||||||||||||||||
3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | ||||||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio: | ||||||||||||||||||||
Net interest income | $ | 58,867 | $ | 60,237 | $ | 59,633 | $ | 58,451 | $ | 54,028 | ||||||||||
Non-interest income | 14,010 | 13,957 | 12,286 | 13,471 | 12,415 | |||||||||||||||
Total net revenue | 72,877 | 74,194 | 71,919 | 71,922 | 66,443 | |||||||||||||||
Tax equivalent adjustment on securities interest income | 1,544 | 1,546 | 1,543 | 1,481 | 1,440 | |||||||||||||||
Net (gain) loss on sale of securities | (1,534 | ) | 43 | (33 | ) | (1,193 | ) | (60 | ) | |||||||||||
Core total revenue | 72,887 | 75,783 | 73,429 | 72,210 | 67,823 | |||||||||||||||
Non-interest expense | 45,921 | 45,814 | 43,780 | 44,904 | 46,723 | |||||||||||||||
Merger-related expense | (2,455 | ) | (502 | ) | — | — | (388 | ) | ||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (971 | ) | (2,493 | ) | (1,103 | ) | (2,321 | ) | (678 | ) | ||||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | — | — | — | 1,637 | — | |||||||||||||||
Charge on benefit plan settlement | — | — | — | — | (1,486 | ) | ||||||||||||||
Amortization of intangible assets | (1,399 | ) | (1,873 | ) | (2,511 | ) | (2,511 | ) | (2,511 | ) | ||||||||||
Core non-interest expense | 41,096 | 40,946 | 40,166 | 41,709 | 41,660 | |||||||||||||||
Core operating efficiency ratio | 56.4 | % | 54.0 | % | 54.7 | % | 57.8 | % | 61.4 | % | ||||||||||
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 before income tax expense | $ | 24,856 | $ | 25,380 | $ | 22,789 | $ | 21,068 | $ | 14,920 | ||||||||||
Income tax expense | 8,078 | 8,376 | 6,452 | 6,057 | 4,588 | |||||||||||||||
Net income | 16,778 | 17,004 | 16,337 | 15,011 | 10,332 | |||||||||||||||
Net (gain) loss on sale of securities | (1,534 | ) | 43 | (33 | ) | (1,193 | ) | (60 | ) | |||||||||||
Merger-related expense | 2,455 | 502 | — | — | 388 | |||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 971 | 2,493 | 1,103 | 2,321 | 678 | |||||||||||||||
Gain on sale of financial center and redemption of Trust Preferred Securities | — | — | — | (1,637 | ) | — | ||||||||||||||
Charge on benefit plan settlement | — | — | — | — | 1,486 | |||||||||||||||
Amortization of non-compete agreements and acquired customer lists | 660 | 859 | 1,497 | 1,497 | 1,497 | |||||||||||||||
Total charges | 2,552 | 3,897 | 2,567 | 988 | 3,989 | |||||||||||||||
Income tax (benefit) | (829 | ) | (1,286 | ) | (738 | ) | (284 | ) | (1,227 | ) | ||||||||||
Total non-core charges net of taxes | 1,723 | 2,611 | 1,829 | 704 | 2,762 | |||||||||||||||
Core net income | $ | 18,501 | $ | 19,615 | $ | 18,166 | $ | 15,715 | $ | 13,094 | ||||||||||
Weighted average diluted shares1 | 88,252,768 | 84,194,916 | 83,883,461 | 83,806,135 | 83,794,107 | |||||||||||||||
Diluted EPS as reported | $ | 0.19 | $ | 0.20 | $ | 0.19 | $ | 0.18 | $ | 0.12 | ||||||||||
Core diluted EPS (excluding total charges) | 0.21 | 0.23 | 0.22 | 0.19 | 0.16 | |||||||||||||||
The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess the Company’s profitability. |