Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated October 26, 2015. |
DATE: October 26, 2015 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 | Press Release of Sterling Bancorp, dated October 26, 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 | |
October 26, 2015 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
▪ | Total revenue2 was $109.4 million. |
▪ | Core net income1 was $32.0 million and core diluted earnings per share1 were $0.25, which represented growth of 76.3% and 13.6% over the same quarter a year ago. |
▪ | Tax equivalent net interest margin was 3.76%. |
▪ | Total non-interest income excluding securities gains was $16.1 million, which represented 14.7% of total revenue2. |
▪ | Core operating efficiency ratio1 was 49.0%. |
▪ | Commercial loan growth was $290.7 million, representing an annualized growth rate of 19.1% over the linked quarter. |
▪ | Loans to deposits ratio of 85.5%; total deposits were $8.8 billion with over 92.7% core deposits and a weighted average cost of deposits of 0.24%. |
▪ | Core return on average tangible assets1 was 1.21%, compared to 1.06% in the third quarter of 2014. |
▪ | Core return on average tangible equity1 was 14.33%, compared to 13.81% in the third quarter of 2014. |
▪ | Established middle market loan syndication team and expanded health care asset-based lending platform through new hires. |
▪ | Completed termination of legacy Provident Bank and legacy Sterling National Bank defined benefit pension plans. |
▪ | Total assets were $11.6 billion. |
▪ | Total portfolio loans were $7.5 billion. |
▪ | Commercial real estate loans represented 44.0%; commercial and industrial loans (which includes traditional C&I, asset-based lending, payroll finance, factoring, warehouse lending and equipment finance) represented 40.1%; consumer and residential mortgage loans represented 13.5%; and acquisition, development and construction loans represented 2.4% of total portfolio loans. |
▪ | Commercial loan growth, which includes commercial and industrial loans, commercial real estate loans and specialty lending businesses was $290.7 million for the quarter ended September 30, 2015, and represented annualized growth of 19.1% over the prior quarter. |
▪ | Securities were $2.5 billion and represented 21.8% of total assets. |
▪ | Total deposits were $8.8 billion. |
▪ | Retail, commercial and municipal transaction, money market and savings deposits were $8.2 billion and represented 92.7% of total deposits. |
▪ | The allowance for loan losses was $47.6 million and represented 0.63% of total portfolio loans. The balance of fair value adjustments on acquired loans was a discount of $48.5 million at September 30, 2015. As these loans 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 $6.94. |
9/30/2014 | 12/31/2014 | 9/30/2015 | ||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 177,619 | $ | 121,520 | $ | 318,139 | ||||||
Investment securities | 1,689,888 | 1,713,183 | 2,527,992 | |||||||||
Loans held for sale | 17,846 | 46,599 | 66,506 | |||||||||
Portfolio loans: | ||||||||||||
Residential mortgage | 570,431 | 529,766 | 721,606 | |||||||||
Commercial real estate | 1,817,576 | 1,842,821 | 3,320,693 | |||||||||
Commercial and industrial | 2,076,474 | 2,145,644 | 3,015,043 | |||||||||
Acquisition, development and construction | 92,149 | 96,995 | 177,062 | |||||||||
Consumer | 203,808 | 200,415 | 291,228 | |||||||||
Total portfolio loans | 4,760,438 | 4,815,641 | 7,525,632 | |||||||||
Allowance for loan losses | (40,612 | ) | (42,374 | ) | (47,611 | ) | ||||||
Portfolio loans, net | 4,719,826 | 4,773,267 | 7,478,021 | |||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 66,085 | 75,437 | 89,626 | |||||||||
Accrued interest receivable | 19,667 | 19,301 | 31,092 | |||||||||
Premises and equipment, net | 43,286 | 46,156 | 63,508 | |||||||||
Goodwill | 388,926 | 388,926 | 670,699 | |||||||||
Other intangibles | 45,278 | 43,332 | 80,830 | |||||||||
Bank owned life insurance | 119,486 | 150,522 | 195,741 | |||||||||
Other real estate owned | 7,580 | 5,867 | 11,831 | |||||||||
Other assets | 41,900 | 40,712 | 63,408 | |||||||||
Total assets | $ | 7,337,387 | $ | 7,424,822 | $ | 11,597,393 | ||||||
Liabilities: | ||||||||||||
Deposits | $ | 5,298,654 | $ | 5,212,325 | $ | 8,805,411 | ||||||
FHLB borrowings | 795,028 | 1,003,209 | 806,970 | |||||||||
Other borrowings | 45,639 | 9,846 | 42,286 | |||||||||
Senior notes | 98,402 | 98,498 | 98,792 | |||||||||
Mortgage escrow funds | 4,494 | 4,167 | 13,865 | |||||||||
Other liabilities | 134,032 | 121,577 | 177,865 | |||||||||
Total liabilities | 6,376,249 | 6,449,622 | 9,945,189 | |||||||||
Stockholders’ equity | 961,138 | 975,200 | 1,652,204 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,337,387 | $ | 7,424,822 | $ | 11,597,393 | ||||||
Shares of common stock outstanding at period end | 83,628,267 | 83,927,572 | 129,769,569 | |||||||||
Book value per share | $ | 11.49 | $ | 11.62 | $ | 12.73 | ||||||
Tangible book value per share | 6.30 | 6.47 | 6.94 |
For the three months ended | For the nine months ended | ||||||||||||||||||
9/30/2014 | 6/30/2015 | 9/30/2015 | 9/30/2014 | 9/30/2015 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Loans and loan fees | $ | 55,793 | $ | 59,744 | $ | 87,774 | $ | 160,294 | $ | 202,789 | |||||||||
Securities taxable | 7,587 | 8,423 | 11,114 | 23,166 | 27,168 | ||||||||||||||
Securities non-taxable | 2,866 | 2,900 | 3,169 | 8,291 | 8,936 | ||||||||||||||
Other earning assets | 863 | 880 | 1,241 | 2,445 | 3,023 | ||||||||||||||
Total interest income | 67,109 | 71,947 | 103,298 | 194,196 | 241,916 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 2,421 | 3,359 | 5,299 | 7,135 | 11,749 | ||||||||||||||
Borrowings | 5,055 | 5,014 | 4,645 | 14,949 | 14,372 | ||||||||||||||
Total interest expense | 7,476 | 8,373 | 9,944 | 22,084 | 26,121 | ||||||||||||||
Net interest income | 59,633 | 63,574 | 93,354 | 172,112 | 215,795 | ||||||||||||||
Provision for loan losses | 5,350 | 3,100 | 5,000 | 16,100 | 10,200 | ||||||||||||||
Net interest income after provision for loan losses | 54,283 | 60,474 | 88,354 | 156,012 | 205,595 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Accounts receivable / factoring commissions and other fees | 3,814 | 4,435 | 4,761 | 10,927 | 12,698 | ||||||||||||||
Mortgage banking income | 2,160 | 2,530 | 2,956 | 6,470 | 8,643 | ||||||||||||||
Deposit fees and service charges | 3,850 | 3,639 | 4,450 | 11,651 | 11,628 | ||||||||||||||
Net gain on sale of securities | 33 | 697 | 2,726 | 1,287 | 4,958 | ||||||||||||||
Bank owned life insurance | 791 | 1,074 | 1,293 | 1,469 | 3,443 | ||||||||||||||
Investment management fees | 446 | 316 | 844 | 2,540 | 1,520 | ||||||||||||||
Other | 1,192 | 1,166 | 1,772 | 3,828 | 3,778 | ||||||||||||||
Total non-interest income | 12,286 | 13,857 | 18,802 | 38,172 | 46,668 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and benefits | 22,110 | 22,667 | 29,238 | 70,755 | 75,070 | ||||||||||||||
Stock-based compensation plans | 1,006 | 1,128 | 1,064 | 2,712 | 3,300 | ||||||||||||||
Occupancy and office operations | 7,148 | 7,453 | 9,576 | 21,393 | 23,610 | ||||||||||||||
Amortization of intangible assets | 2,511 | 1,780 | 3,431 | 7,533 | 6,611 | ||||||||||||||
FDIC insurance and regulatory assessments | 1,619 | 1,384 | 2,281 | 4,981 | 5,093 | ||||||||||||||
Other real estate owned, net (income) expense | 214 | 40 | 183 | (605 | ) | 187 | |||||||||||||
Merger-related expense | — | 14,625 | — | 388 | 17,079 | ||||||||||||||
Defined benefit plan termination charge | — | — | 13,384 | 1,486 | 13,384 | ||||||||||||||
Other | 9,172 | 36,582 | 12,158 | 26,765 | 58,564 | ||||||||||||||
Total non-interest expense | 43,780 | 85,659 | 71,315 | 135,408 | 202,898 | ||||||||||||||
Income (loss) before income tax expense | 22,789 | (11,328 | ) | 35,841 | 58,776 | 49,365 | |||||||||||||
Income tax expense (benefit) | 6,452 | (3,682 | ) | 11,648 | 17,096 | 16,043 | |||||||||||||
Net income (loss) | $ | 16,337 | $ | (7,646 | ) | $ | 24,193 | $ | 41,680 | $ | 33,322 | ||||||||
Weighted average common shares: | |||||||||||||||||||
Basic | 83,610,943 | 91,565,972 | 129,733,911 | 83,051,192 | 102,655,566 | ||||||||||||||
Diluted | 83,883,461 | 91,950,776 | 130,192,937 | 83,316,086 | 103,069,057 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic earnings per share | $ | 0.20 | $ | (0.08 | ) | $ | 0.19 | $ | 0.50 | $ | 0.32 | ||||||||
Diluted earnings per share | 0.19 | (0.08 | ) | 0.19 | 0.50 | 0.32 | |||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.21 | 0.21 |
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | ||||||||||||||
Total assets | $ | 7,337,387 | $ | 7,424,822 | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | |||||||||
Securities available for sale | 1,110,813 | 1,140,846 | 1,214,404 | 2,081,414 | 1,854,862 | ||||||||||||||
Securities held to maturity | 579,075 | 572,337 | 585,633 | 585,196 | 673,130 | ||||||||||||||
Total portfolio loans | 4,760,438 | 4,815,641 | 4,938,906 | 7,235,587 | 7,525,632 | ||||||||||||||
Goodwill | 388,926 | 388,926 | 400,941 | 669,590 | 670,699 | ||||||||||||||
Other intangibles | 45,278 | 43,332 | 51,757 | 84,309 | 80,830 | ||||||||||||||
Deposits | 5,298,654 | 5,212,325 | 5,555,946 | 8,836,161 | 8,805,411 | ||||||||||||||
Municipal deposits (included above) | 992,761 | 883,350 | 1,013,835 | 1,212,624 | 1,352,846 | ||||||||||||||
Borrowings | 939,069 | 1,111,553 | 980,978 | 914,921 | 948,048 | ||||||||||||||
Stockholders’ equity | 961,138 | 975,200 | 1,080,543 | 1,623,110 | 1,652,204 | ||||||||||||||
Tangible equity | 526,934 | 542,942 | 627,845 | 869,211 | 900,675 | ||||||||||||||
Average Balances | |||||||||||||||||||
Total assets | $ | 7,217,649 | $ | 7,340,332 | $ | 7,438,314 | $ | 8,049,220 | $ | 11,242,870 | |||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 548,146 | 566,705 | 531,421 | 539,569 | 780,373 | ||||||||||||||
Commercial real estate | 1,736,441 | 1,850,168 | 1,908,582 | 2,040,094 | 3,253,183 | ||||||||||||||
Commercial and industrial | 1,966,359 | 2,038,784 | 2,068,394 | 2,326,902 | 2,831,253 | ||||||||||||||
Acquisition, development and construction | 97,863 | 95,727 | 97,865 | 97,197 | 173,898 | ||||||||||||||
Consumer | 202,940 | 204,631 | 200,504 | 202,044 | 292,852 | ||||||||||||||
Loans, total 1 | 4,580,178 | 4,756,015 | 4,806,766 | 5,205,806 | 7,331,559 | ||||||||||||||
Securities (taxable) | 1,349,126 | 1,355,104 | 1,379,861 | 1,527,872 | 1,967,600 | ||||||||||||||
Securities (non-taxable) | 361,766 | 366,017 | 386,326 | 380,544 | 446,875 | ||||||||||||||
Total earning assets | 6,430,467 | 6,629,115 | 6,736,422 | 7,309,667 | 10,038,831 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,636,583 | 1,626,341 | 1,503,692 | 1,548,844 | 3,234,450 | ||||||||||||||
Interest bearing demand | 732,699 | 756,217 | 775,714 | 823,471 | 1,418,803 | ||||||||||||||
Savings (including mortgage escrow funds) | 647,103 | 685,142 | 766,448 | 802,956 | 950,709 | ||||||||||||||
Money market | 1,566,669 | 1,817,091 | 1,851,839 | 1,922,805 | 2,548,181 | ||||||||||||||
Certificates of deposit | 520,899 | 457,996 | 452,594 | 536,394 | 539,765 | ||||||||||||||
Total deposits and mortgage escrow | 5,103,953 | 5,342,787 | 5,350,287 | 5,634,470 | 8,691,908 | ||||||||||||||
Borrowings | 1,064,137 | 902,299 | 955,677 | 1,234,958 | 772,777 | ||||||||||||||
Equity | 956,166 | 973,089 | 1,031,809 | 1,100,897 | 1,639,458 | ||||||||||||||
Tangible equity | 522,025 | 539,693 | 592,839 | 645,577 | 886,757 | ||||||||||||||
Condensed Tax Equivalent Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 67,109 | $ | 68,087 | $ | 66,672 | $ | 71,947 | $ | 103,298 | |||||||||
Tax equivalent adjustment2 | 1,543 | 1,546 | 1,544 | 1,562 | 1,707 | ||||||||||||||
Interest expense | 7,476 | 7,850 | 7,805 | 8,373 | 9,944 | ||||||||||||||
Net interest income (tax equivalent) | 61,176 | 61,783 | 60,411 | 65,136 | 95,061 | ||||||||||||||
Provision for loan losses | 5,350 | 3,000 | 2,100 | 3,100 | 5,000 | ||||||||||||||
Net interest income after provision for loan losses | 55,826 | 58,783 | 58,311 | 62,036 | 90,061 | ||||||||||||||
Non-interest income | 12,286 | 13,957 | 14,010 | 13,857 | 18,802 | ||||||||||||||
Non-interest expense | 43,780 | 45,814 | 45,921 | 85,659 | 71,315 | ||||||||||||||
Income (loss) before income tax expense | 24,332 | 26,926 | 26,400 | (9,766 | ) | 37,548 | |||||||||||||
Income tax expense (benefit) (tax equivalent) | 7,995 | 9,922 | 9,622 | (2,120 | ) | 13,355 | |||||||||||||
Net income (loss) | $ | 16,337 | $ | 17,004 | $ | 16,778 | $ | (7,646 | ) | $ | 24,193 | ||||||||
1 Includes loans held for sale, excludes allowance for loan losses. | |||||||||||||||||||
2Tax exempt income assumed at a statutory 35% federal tax rate. |
For the Quarter Ended | |||||||||||||||||||
Per Share Data | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/15 | 9/30/2015 | ||||||||||||||
Basic earnings per share | $ | 0.20 | $ | 0.20 | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | ||||||||
Diluted earnings per share | 0.19 | 0.20 | 0.19 | (0.08 | ) | 0.19 | |||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Tangible book value per share | 6.30 | 6.47 | 6.89 | 6.70 | 6.94 | ||||||||||||||
Shares of common stock outstanding | 83,628,267 | 83,927,572 | 91,121,531 | 129,709,834 | 129,769,569 | ||||||||||||||
Basic weighted average common shares outstanding | 83,610,943 | 83,831,380 | 87,839,029 | 91,565,972 | 129,733,911 | ||||||||||||||
Diluted weighted average common shares outstanding | 83,883,461 | 84,194,916 | 88,252,768 | 91,950,776 | 130,192,937 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | 0.90 | % | 0.92 | % | 0.91 | % | (0.38 | )% | 0.85 | % | |||||||||
Return on average equity | 6.78 | % | 6.93 | % | 6.59 | % | (2.79 | )% | 5.85 | % | |||||||||
Return on average tangible equity 1 | 12.42 | % | 12.50 | % | 11.48 | % | (4.75 | )% | 10.82 | % | |||||||||
Core operating efficiency 1 | 54.7 | % | 54.0 | % | 56.4 | % | 52.6 | % | 49.0 | % | |||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Yield on loans | 4.83 | % | 4.74 | % | 4.66 | % | 4.60 | % | 4.75 | % | |||||||||
Yield on investment securities - tax equivalent2 | 2.78 | % | 2.73 | % | 2.79 | % | 2.71 | % | 2.63 | % | |||||||||
Yield on earning assets - tax equivalent2 | 4.24 | % | 4.17 | % | 4.11 | % | 4.03 | % | 4.15 | % | |||||||||
Cost of deposits | 0.19 | % | 0.21 | % | 0.23 | % | 0.24 | % | 0.24 | % | |||||||||
Cost of borrowings | 1.88 | % | 2.21 | % | 2.00 | % | 1.63 | % | 2.38 | % | |||||||||
Cost of interest bearing liabilities | 0.65 | % | 0.67 | % | 0.66 | % | 0.63 | % | 0.63 | % | |||||||||
Net interest rate spread - tax equivalent basis2 | 3.59 | % | 3.50 | % | 3.45 | % | 3.40 | % | 3.52 | % | |||||||||
Net interest margin - tax equivalent basis2 | 3.77 | % | 3.70 | % | 3.64 | % | 3.57 | % | 3.76 | % | |||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company (estimated) | 8.12 | % | 8.21 | % | 9.46 | % | 12.86 | % | 9.13 | % | |||||||||
Tier 1 leverage ratio - Bank only (estimated) | 9.34 | % | 9.38 | % | 10.53 | % | 13.81 | % | 9.80 | % | |||||||||
Tier 1 risk-based capital - Bank only (estimated) | $ | 636,327 | $ | 651,204 | $ | 739,580 | $ | 1,015,470 | $ | 1,032,930 | |||||||||
Total risk-based capital - Bank only (estimated) | 676,939 | 693,973 | 782,859 | 1,060,333 | 1,081,086 | ||||||||||||||
Tangible equity as a % of tangible assets - consolidated 1 | 7.63 | % | 7.76 | % | 8.63 | % | 8.04 | % | 8.30 | % | |||||||||
Asset Quality | |||||||||||||||||||
Non-performing loans (NPLs) non-accrual | $ | 49,562 | $ | 45,859 | $ | 45,476 | $ | 68,419 | $ | 67,390 | |||||||||
Non-performing loans (NPLs) still accruing | 1,401 | 783 | 972 | 611 | 282 | ||||||||||||||
Other real estate owned | 7,580 | 5,867 | 8,231 | 9,575 | 11,831 | ||||||||||||||
Non-performing assets (NPAs) | 58,543 | 52,509 | 54,679 | 78,605 | 79,503 | ||||||||||||||
Net charge-offs | 1,088 | 1,238 | 1,590 | 1,667 | 1,706 | ||||||||||||||
Net charge-offs as a % of average loans (annualized) | 0.09 | % | 0.10 | % | 0.13 | % | 0.13 | % | 0.09 | % | |||||||||
NPLs as a % of total loans | 1.07 | % | 0.97 | % | 0.94 | % | 0.95 | % | 0.90 | % | |||||||||
NPAs as a % of total assets | 0.80 | % | 0.71 | % | 0.71 | % | 0.68 | % | 0.69 | % | |||||||||
Allowance for loan losses as a % of NPLs | 79.7 | % | 90.8 | % | 92.3 | % | 64.2 | % | 70.4 | % | |||||||||
Allowance for loan losses as a % of total loans | 0.85 | % | 0.88 | % | 0.87 | % | 0.61 | % | 0.63 | % | |||||||||
Special mention loans | $ | 39,553 | $ | 31,318 | $ | 26,057 | $ | 65,421 | $ | 91,076 | |||||||||
Substandard / doubtful loans | 73,093 | 74,901 | 74,252 | 125,994 | 120,836 | ||||||||||||||
1 See reconciliation of non-GAAP measure on following page. | |||||||||||||||||||
2Tax exempt income assumed at a statutory 35% federal tax rate. |
For the three months ended | |||||||||||||||||||||
9/30/2015 | 6/30/2015 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Commercial loans | $ | 6,258,334 | $ | 77,150 | 4.89 | % | $ | 4,464,193 | $ | 51,805 | 4.65 | % | |||||||||
Consumer loans | 292,852 | 3,294 | 4.46 | % | 202,044 | 1,975 | 3.92 | % | |||||||||||||
Residential mortgage loans | 780,373 | 7,330 | 3.76 | % | 539,569 | 5,964 | 4.43 | % | |||||||||||||
Total net loans (1) | 7,331,559 | 87,774 | 4.75 | % | 5,205,806 | 59,744 | 4.60 | % | |||||||||||||
Securities taxable | 1,967,600 | 11,114 | 2.24 | % | 1,527,872 | 8,423 | 2.21 | % | |||||||||||||
Securities non-taxable | 446,875 | 4,876 | 4.33 | % | 380,544 | 4,462 | 4.70 | % | |||||||||||||
Interest earning deposits | 211,723 | 131 | 0.25 | % | 114,128 | 48 | 0.17 | % | |||||||||||||
FRB and FHLB stock | 81,074 | 1,110 | 5.43 | % | 81,317 | 832 | 4.10 | % | |||||||||||||
Total securities and other earning assets | 2,707,272 | 17,231 | 2.53 | % | 2,103,861 | 13,765 | 2.62 | % | |||||||||||||
Total interest earning assets | 10,038,831 | 105,005 | 4.15 | % | 7,309,667 | 73,509 | 4.03 | % | |||||||||||||
Non-interest earning assets | 1,204,039 | 739,553 | |||||||||||||||||||
Total assets | $ | 11,242,870 | $ | 8,049,220 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,418,803 | $ | 923 | 0.26 | % | $ | 823,471 | $ | 207 | 0.10 | % | |||||||||
Savings deposits (2) | 950,709 | 564 | 0.24 | % | 802,956 | 482 | 0.24 | % | |||||||||||||
Money market deposits | 2,548,181 | 2,961 | 0.46 | % | 1,922,805 | 1,931 | 0.40 | % | |||||||||||||
Certificates of deposit | 539,765 | 851 | 0.63 | % | 536,394 | 739 | 0.55 | % | |||||||||||||
Total interest bearing deposits | 5,457,458 | 5,299 | 0.39 | % | 4,085,626 | 3,359 | 0.33 | % | |||||||||||||
Senior notes | 98,727 | 1,474 | 5.97 | % | 98,629 | 1,473 | 5.99 | % | |||||||||||||
Other borrowings | 674,050 | 3,171 | 1.87 | % | 1,136,329 | 3,541 | 1.25 | % | |||||||||||||
Total interest bearing liabilities | 6,230,235 | 9,944 | 0.63 | % | 5,320,584 | 8,373 | 0.63 | % | |||||||||||||
Non-interest bearing deposits | 3,234,450 | 1,548,844 | |||||||||||||||||||
Other non-interest bearing liabilities | 138,727 | 78,895 | |||||||||||||||||||
Total liabilities | 9,603,412 | 6,948,323 | |||||||||||||||||||
Stockholders’ equity | 1,639,458 | 1,100,897 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,242,870 | $ | 8,049,220 | |||||||||||||||||
Net interest rate spread (3) | 3.52 | % | 3.40 | % | |||||||||||||||||
Net interest earning assets (4) | $ | 3,808,596 | |||||||||||||||||||
Net interest margin | 95,061 | 3.76 | % | 65,136 | 3.57 | % | |||||||||||||||
Less tax equivalent adjustment | (1,707 | ) | (1,562 | ) | |||||||||||||||||
Net interest income | $ | 93,354 | $ | 63,574 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 161.1 | % | 137.4 | % | |||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | |||||||||||||||
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 | $ | 7,337,387 | $ | 7,424,822 | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | |||||||||
Goodwill and other intangibles | (434,204 | ) | (432,258 | ) | (452,698 | ) | (753,899 | ) | (751,529 | ) | |||||||||
Tangible assets | 6,903,183 | 6,992,564 | 7,274,817 | 10,812,483 | 10,845,864 | ||||||||||||||
Stockholders’ equity | 961,138 | 975,200 | 1,080,543 | 1,623,110 | 1,652,204 | ||||||||||||||
Goodwill and other intangibles | (434,204 | ) | (432,258 | ) | (452,698 | ) | (753,899 | ) | (751,529 | ) | |||||||||
Tangible stockholders’ equity | 526,934 | 542,942 | 627,845 | 869,211 | 900,675 | ||||||||||||||
Common stock outstanding at period end | 83,628,267 | 83,927,572 | 91,121,531 | 129,709,834 | 129,769,569 | ||||||||||||||
Tangible equity as a % of tangible assets | 7.63 | % | 7.76 | % | 8.63 | % | 8.04 | % | 8.30 | % | |||||||||
Tangible book value per share | $ | 6.30 | $ | 6.47 | $ | 6.89 | $ | 6.70 | $ | 6.94 | |||||||||
The Company believes that tangible equity is useful as a tool to help assess the 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 | $ | 956,166 | $ | 973,089 | $ | 1,031,809 | $ | 1,100,897 | $ | 1,639,458 | |||||||||
Average goodwill and other intangibles | (434,141 | ) | (433,396 | ) | (438,970 | ) | (455,320 | ) | (752,701 | ) | |||||||||
Average tangible stockholders’ equity | 522,025 | 539,693 | 592,839 | 645,577 | 886,757 | ||||||||||||||
Net income (loss) | 16,337 | 17,004 | 16,778 | (7,646 | ) | 24,193 | |||||||||||||
Net income (loss), if annualized | 64,815 | 67,462 | 68,044 | (30,668 | ) | 95,983 | |||||||||||||
Return on average tangible equity | 12.42 | % | 12.50 | % | 11.48 | % | (4.75 | )% | 10.82 | % | |||||||||
Core net income (see reconciliation on page 12) | $ | 18,166 | $ | 19,615 | $ | 18,501 | $ | 21,361 | $ | 32,035 | |||||||||
Annualized core net income | 72,072 | 77,820 | 75,032 | 85,679 | 127,095 | ||||||||||||||
Core return on average tangible equity | 13.81 | % | 14.42 | % | 12.66 | % | 13.27 | % | 14.33 | % | |||||||||
The Company believes that the return on average tangible stockholders’ equity is useful as a tool to help assess the 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 | $ | 7,217,649 | $ | 7,340,332 | $ | 7,438,314 | $ | 8,049,220 | $ | 11,242,870 | |||||||||
Average goodwill and other intangibles | (434,141 | ) | (433,396 | ) | (438,970 | ) | (455,320 | ) | (752,701 | ) | |||||||||
Average tangible assets | 6,783,508 | 6,906,936 | 6,999,344 | 7,593,900 | 10,490,169 | ||||||||||||||
Net income (loss) | 16,337 | 17,004 | 16,778 | (7,646 | ) | 24,193 | |||||||||||||
Annualized net income (loss) | 64,815 | 67,462 | 68,044 | (30,668 | ) | 95,983 | |||||||||||||
Return on average tangible assets | 0.96 | % | 0.98 | % | 0.97 | % | (0.40 | )% | 0.91 | % | |||||||||
Core net income (see reconciliation on page 12) | $ | 18,166 | $ | 19,615 | $ | 18,501 | $ | 21,361 | $ | 32,035 | |||||||||
Annualized core net income | 72,072 | 77,820 | 75,032 | 85,679 | 127,095 | ||||||||||||||
Core return on average tangible assets | 1.06 | % | 1.13 | % | 1.07 | % | 1.13 | % | 1.21 | % | |||||||||
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 | ||||||||||||||||||||
9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | ||||||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio: | ||||||||||||||||||||
Net interest income | $ | 59,633 | $ | 60,237 | $ | 58,867 | $ | 63,574 | $ | 93,354 | ||||||||||
Non-interest income | 12,286 | 13,957 | 14,010 | 13,857 | 18,802 | |||||||||||||||
Total net revenue | 71,919 | 74,194 | 72,877 | 77,431 | 112,156 | |||||||||||||||
Tax equivalent adjustment on securities interest income | 1,543 | 1,546 | 1,544 | 1,562 | 1,707 | |||||||||||||||
Net (gain) loss on sale of securities | (33 | ) | 43 | (1,534 | ) | (697 | ) | (2,726 | ) | |||||||||||
Core total revenue | 73,429 | 75,783 | 72,887 | 78,296 | 111,137 | |||||||||||||||
Non-interest expense | 43,780 | 45,814 | 45,921 | 85,659 | 71,315 | |||||||||||||||
Merger-related expense | — | (502 | ) | (2,455 | ) | (14,625 | ) | — | ||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (1,103 | ) | (2,493 | ) | (971 | ) | (28,055 | ) | — | |||||||||||
Defined benefit plan termination charge | — | — | — | — | (13,384 | ) | ||||||||||||||
Amortization of intangible assets | (2,511 | ) | (1,873 | ) | (1,399 | ) | (1,780 | ) | (3,431 | ) | ||||||||||
Core non-interest expense | 40,166 | 40,946 | 41,096 | 41,199 | 54,500 | |||||||||||||||
Core operating efficiency ratio | 54.7 | % | 54.0 | % | 56.4 | % | 52.6 | % | 49.0 | % | ||||||||||
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 | $ | 22,789 | $ | 25,380 | $ | 24,856 | $ | (11,328 | ) | $ | 35,841 | |||||||||
Income tax expense (benefit) | 6,452 | 8,376 | 8,078 | (3,682 | ) | 11,648 | ||||||||||||||
Net income (loss) | 16,337 | 17,004 | 16,778 | (7,646 | ) | 24,193 | ||||||||||||||
Net (gain) loss on sale of securities | (33 | ) | 43 | (1,534 | ) | (697 | ) | (2,726 | ) | |||||||||||
Merger-related expense | — | 502 | 2,455 | 14,625 | — | |||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 1,103 | 2,493 | 971 | 28,055 | — | |||||||||||||||
Defined benefit plan termination charge | — | — | — | — | 13,384 | |||||||||||||||
Amortization of non-compete agreements and acquired customer lists | 1,497 | 859 | 660 | 991 | 961 | |||||||||||||||
Total charges | 2,567 | 3,897 | 2,552 | 42,974 | 11,619 | |||||||||||||||
Income tax (benefit) | (738 | ) | (1,286 | ) | (829 | ) | (13,967 | ) | (3,777 | ) | ||||||||||
Total non-core charges net of taxes | 1,829 | 2,611 | 1,723 | 29,007 | 7,842 | |||||||||||||||
Core net income | $ | 18,166 | $ | 19,615 | $ | 18,501 | $ | 21,361 | $ | 32,035 | ||||||||||
Weighted average diluted shares | 83,883,461 | 84,194,916 | 88,252,768 | 91,950,776 | 130,192,937 | |||||||||||||||
Diluted EPS as reported | $ | 0.19 | $ | 0.20 | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | |||||||||
Core diluted EPS (excluding total charges) | 0.22 | 0.23 | 0.21 | 0.23 | 0.25 | |||||||||||||||
The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess the Company’s profitability. |