Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated January 27, 2016. |
DATE: January 27, 2016 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 | Press Release of Sterling Bancorp, dated January 27, 2016 |
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, 2016 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
▪ | Core net income1 was $105.4 million, which represented 58.1% growth over 2014. |
▪ | Core diluted earnings per share1 were $0.96, which represented growth of 21.5% over the prior year. |
▪ | Core operating efficiency ratio1 was 50.8%. |
▪ | Core return on average tangible assets1 was 1.17% and core return on average tangible equity1 was 13.86%. |
▪ | Total revenue3 reached $111.6 million. |
▪ | Core net income1 was $33.5 million, which represented growth of 4.7% over the linked quarter and 70.9% over the fourth quarter of 2014. |
▪ | Core diluted earnings per share1 were $0.26; which represented growth of 13.0% over the fourth quarter of 2014. |
▪ | Tax equivalent net interest margin was 3.68%, compared to 3.76% in the linked quarter and 3.70% in the fourth quarter of 2014. |
▪ | Total non-interest income excluding securities gains was $16.2 million, which represented 14.5% of total revenue3. |
▪ | Core total revenue1 grew 2.0% while core non-interest expense decreased by 0.9% over the linked quarter. |
▪ | Core operating efficiency ratio1 was 47.6%. |
▪ | Annualized commercial loan growth of 20.4% (end of period balances) and 21.8% (average balances) over the linked quarter. |
▪ | Loans to deposits ratio of 91.6%; total deposits were $8.6 billion with over 91.2% core deposits4 and a weighted average cost of deposits of 0.26%. |
▪ | Core return on average tangible assets1 was 1.22%, compared to 1.21% in the linked quarter and 1.13% in the fourth quarter of 2014. |
▪ | Core return on average tangible equity1 was 14.60%, compared to 14.33% in the linked quarter and 14.42% in the fourth quarter of 2014. |
▪ | Completed four new team hires in commercial relationship banking and expanded asset-based lending capabilities. |
▪ | Total assets were $12.0 billion. |
▪ | Total loans, including loans held for sale, were $7.9 billion. |
▪ | Commercial and industrial loans (which includes traditional C&I, asset-based lending, payroll finance, factoring and warehouse lending) represented 39.8%, commercial real estate loans represented 44.9%, consumer and residential mortgage loans represented 12.9%, and acquisition, development and construction loans represented 2.4% of the total loan portfolio. |
▪ | Commercial loan growth, which includes commercial and industrial loans described above, commercial real estate and acquisition development and construction loans was $334.0 million for the quarter ended December 31, 2015, and represented annualized growth of 20.4% over the prior quarter. |
▪ | The allowance for loan losses was $50.1 million and represented 0.64% 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. |
▪ | Securities, excluding FHLB and FRB stock, were $2.6 billion and represented 22.1% of total assets. |
▪ | Core deposits were $7.8 billion and represented 91.2% of total deposits. |
▪ | Total deposits were $8.6 billion compared to $8.8 billion at September 30, 2015. Average deposits were $8.8 billion for the fourth quarter compared to $8.7 billion for the prior quarter. |
▪ | Borrowings were $1.5 billion compared to $948.0 million at September 30, 2015. Average borrowings were $988.6 million for the fourth quarter compared to $772.8 million for the third quarter. |
▪ | Tangible book value per share was $7.05. |
12/31/2014 | 9/30/2015 | 12/31/2015 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 121,520 | $ | 318,139 | $ | 229,513 | |||||
Investment securities | 1,713,183 | 2,527,992 | 2,643,823 | ||||||||
Loans held for sale | 46,599 | 66,506 | 34,110 | ||||||||
Loans: | |||||||||||
Residential mortgage | 529,766 | 721,606 | 713,036 | ||||||||
Commercial real estate | 1,842,821 | 3,320,693 | 3,529,381 | ||||||||
Commercial and industrial | 2,145,644 | 3,015,043 | 3,131,028 | ||||||||
Acquisition, development and construction | 96,995 | 177,062 | 186,398 | ||||||||
Consumer | 200,415 | 291,228 | 299,517 | ||||||||
Total loans, gross | 4,815,641 | 7,525,632 | 7,859,360 | ||||||||
Allowance for loan losses | (42,374 | ) | (47,611 | ) | (50,145 | ) | |||||
Total loans, net | 4,773,267 | 7,478,021 | 7,809,215 | ||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 75,437 | 89,626 | 116,758 | ||||||||
Accrued interest receivable | 19,301 | 31,092 | 31,531 | ||||||||
Premises and equipment, net | 46,156 | 63,508 | 63,362 | ||||||||
Goodwill | 388,926 | 670,699 | 670,699 | ||||||||
Other intangibles | 43,332 | 80,830 | 77,367 | ||||||||
Bank owned life insurance | 150,522 | 195,741 | 196,288 | ||||||||
Other real estate owned | 5,867 | 11,831 | 14,614 | ||||||||
Other assets | 40,712 | 63,408 | 68,672 | ||||||||
Total assets | $ | 7,424,822 | $ | 11,597,393 | $ | 11,955,952 | |||||
Liabilities: | |||||||||||
Deposits | $ | 5,212,325 | $ | 8,805,411 | $ | 8,580,007 | |||||
FHLB borrowings | 1,003,209 | 806,970 | 1,409,885 | ||||||||
Other borrowings | 9,846 | 42,286 | 16,566 | ||||||||
Senior notes | 98,498 | 98,792 | 98,893 | ||||||||
Mortgage escrow funds | 4,167 | 13,865 | 13,778 | ||||||||
Other liabilities | 121,577 | 177,865 | 171,750 | ||||||||
Total liabilities | 6,449,622 | 9,945,189 | 10,290,879 | ||||||||
Stockholders’ equity | 975,200 | 1,652,204 | 1,665,073 | ||||||||
Total liabilities and stockholders’ equity | $ | 7,424,822 | $ | 11,597,393 | $ | 11,955,952 | |||||
Shares of common stock outstanding at period end | 83,927,572 | 129,769,569 | 130,006,926 | ||||||||
Book value per share | $ | 11.62 | $ | 12.73 | $ | 12.81 | |||||
Tangible book value per share | 6.47 | 6.94 | 7.05 |
For the Quarter Ended | For the Year Ended | |||||||||||||||||||
12/31/2014 | 9/30/2015 | 12/31/2015 | 12/31/2014 | 12/31/2015 | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Loans and loan fees | $ | 56,869 | $ | 87,774 | $ | 89,707 | $ | 216,563 | $ | 292,496 | ||||||||||
Securities taxable | 7,413 | 11,114 | 12,201 | 30,577 | 39,369 | |||||||||||||||
Securities non-taxable | 2,865 | 3,169 | 3,139 | 11,157 | 12,076 | |||||||||||||||
Other earning assets | 940 | 1,241 | 1,177 | 3,985 | 4,200 | |||||||||||||||
Total interest income | 68,087 | 103,298 | 106,224 | 262,282 | 348,141 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 2,818 | 5,299 | 5,728 | 9,948 | 17,478 | |||||||||||||||
Borrowings | 5,032 | 4,645 | 5,075 | 19,985 | 19,447 | |||||||||||||||
Total interest expense | 7,850 | 9,944 | 10,803 | 29,933 | 36,925 | |||||||||||||||
Net interest income | 60,237 | 93,354 | 95,421 | 232,349 | 311,216 | |||||||||||||||
Provision for loan losses | 3,000 | 5,000 | 5,500 | 19,100 | 15,700 | |||||||||||||||
Net interest income after provision for loan losses | 57,237 | 88,354 | 89,921 | 213,249 | 295,516 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Accounts receivable / factoring commissions and other fees | 4,134 | 4,761 | 4,389 | 15,054 | 17,088 | |||||||||||||||
Mortgage banking income | 2,858 | 2,956 | 2,762 | 9,328 | 11,405 | |||||||||||||||
Deposit fees and service charges | 4,221 | 4,450 | 4,241 | 15,874 | 15,871 | |||||||||||||||
Net (loss) gain on sale of securities | (43 | ) | 2,726 | (121 | ) | 1,243 | 4,837 | |||||||||||||
Bank owned life insurance | 1,024 | 1,293 | 1,792 | 3,364 | 5,235 | |||||||||||||||
Investment management fees | 403 | 844 | 877 | 2,072 | 2,397 | |||||||||||||||
Other | 1,360 | 1,772 | 2,141 | 5,244 | 5,918 | |||||||||||||||
Total non-interest income | 13,957 | 18,802 | 16,081 | 52,179 | 62,751 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and benefits | 22,410 | 29,238 | 29,868 | 93,166 | 104,939 | |||||||||||||||
Stock-based compensation plans | 1,146 | 1,064 | 1,281 | 3,858 | 4,581 | |||||||||||||||
Occupancy and office operations | 7,245 | 9,576 | 9,306 | 28,638 | 32,915 | |||||||||||||||
Amortization of intangible assets | 1,873 | 3,431 | 3,431 | 9,406 | 10,043 | |||||||||||||||
FDIC insurance and regulatory assessments | 1,568 | 2,281 | 2,287 | 6,550 | 7,380 | |||||||||||||||
Other real estate owned, net (income) expense | (81 | ) | 183 | 87 | (686 | ) | 274 | |||||||||||||
Merger-related expenses | 502 | — | — | 890 | 17,079 | |||||||||||||||
Defined benefit plan termination charge | — | 13,384 | — | 1,352 | 13,384 | |||||||||||||||
Other | 11,151 | 12,158 | 11,159 | 38,094 | 69,723 | |||||||||||||||
Total non-interest expense | 45,814 | 71,315 | 57,419 | 181,268 | 260,318 | |||||||||||||||
Income before income tax expense | 25,380 | 35,841 | 48,583 | 84,160 | 97,949 | |||||||||||||||
Income tax expense | 8,376 | 11,648 | 15,792 | 25,476 | 31,835 | |||||||||||||||
Net income | $ | 17,004 | $ | 24,193 | $ | 32,791 | $ | 58,684 | $ | 66,114 | ||||||||||
Weighted average common shares: | ||||||||||||||||||||
Basic | 83,831,380 | 129,733,911 | 129,812,551 | 83,630,896 | 109,907,645 | |||||||||||||||
Diluted | 84,194,916 | 130,192,937 | 130,354,779 | 83,921,090 | 110,329,353 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||
Basic earnings per share | $ | 0.20 | $ | 0.19 | $ | 0.25 | $ | 0.70 | $ | 0.60 | ||||||||||
Diluted earnings per share | 0.20 | 0.19 | 0.25 | 0.70 | 0.60 | |||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.28 | 0.28 |
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | ||||||||||||||
Total assets | $ | 7,424,822 | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | |||||||||
Securities available for sale | 1,140,846 | 1,214,404 | 2,081,414 | 1,854,862 | 1,921,032 | ||||||||||||||
Securities held to maturity | 572,337 | 585,633 | 585,196 | 673,130 | 722,791 | ||||||||||||||
Loans, gross 1 | 4,815,641 | 4,938,906 | 7,235,587 | 7,525,632 | 7,859,360 | ||||||||||||||
Goodwill | 388,926 | 400,941 | 669,590 | 670,699 | 670,699 | ||||||||||||||
Other intangibles | 43,332 | 51,757 | 84,309 | 80,830 | 77,367 | ||||||||||||||
Deposits | 5,212,325 | 5,555,946 | 8,836,161 | 8,805,411 | 8,580,007 | ||||||||||||||
Municipal deposits (included above) | 883,350 | 1,013,835 | 1,212,624 | 1,352,846 | 1,140,206 | ||||||||||||||
Borrowings | 1,111,553 | 980,978 | 914,921 | 948,048 | 1,525,344 | ||||||||||||||
Stockholders’ equity | 975,200 | 1,080,543 | 1,623,110 | 1,652,204 | 1,665,073 | ||||||||||||||
Tangible equity | 542,942 | 627,845 | 869,211 | 900,675 | 917,007 | ||||||||||||||
Quarterly Average Balances | |||||||||||||||||||
Total assets | 7,340,332 | 7,438,314 | 8,049,220 | 11,242,870 | 11,622,621 | ||||||||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 566,705 | 531,421 | 539,569 | 780,373 | 777,561 | ||||||||||||||
Commercial real estate | 1,850,168 | 1,908,582 | 2,040,094 | 3,253,183 | 3,444,774 | ||||||||||||||
Commercial and industrial | 2,038,784 | 2,068,394 | 2,326,902 | 2,831,253 | 2,973,524 | ||||||||||||||
Acquisition, development and construction | 95,727 | 97,865 | 97,197 | 173,898 | 181,550 | ||||||||||||||
Consumer | 204,631 | 200,504 | 202,044 | 292,852 | 281,242 | ||||||||||||||
Loans, total 1 | 4,756,015 | 4,806,766 | 5,205,806 | 7,331,559 | 7,658,651 | ||||||||||||||
Securities (taxable) | 1,355,104 | 1,379,861 | 1,527,872 | 1,967,600 | 2,111,953 | ||||||||||||||
Securities (non-taxable) | 366,017 | 386,326 | 380,544 | 446,875 | 429,633 | ||||||||||||||
Total earning assets | 6,629,115 | 6,736,422 | 7,309,667 | 10,038,831 | 10,460,168 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,626,341 | 1,503,692 | 1,548,844 | 3,234,450 | 3,017,727 | ||||||||||||||
Interest bearing demand | 756,217 | 775,714 | 823,471 | 1,418,803 | 1,485,690 | ||||||||||||||
Savings (including mortgage escrow funds) | 685,142 | 766,448 | 802,956 | 950,709 | 962,766 | ||||||||||||||
Money market | 1,817,091 | 1,851,839 | 1,922,805 | 2,548,181 | 2,808,734 | ||||||||||||||
Certificates of deposit | 457,996 | 452,594 | 536,394 | 539,765 | 550,640 | ||||||||||||||
Total deposits and mortgage escrow | 5,342,787 | 5,350,287 | 5,634,470 | 8,691,908 | 8,825,557 | ||||||||||||||
Borrowings | 902,299 | 955,677 | 1,234,958 | 772,777 | 988,550 | ||||||||||||||
Equity | 973,089 | 1,031,809 | 1,100,897 | 1,639,458 | 1,661,282 | ||||||||||||||
Tangible equity | 539,693 | 592,839 | 645,577 | 886,757 | 910,948 | ||||||||||||||
Condensed Tax Equivalent Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 68,087 | $ | 66,672 | $ | 71,947 | $ | 103,298 | $ | 106,224 | |||||||||
Tax equivalent adjustment* | 1,546 | 1,544 | 1,562 | 1,707 | 1,692 | ||||||||||||||
Interest expense | 7,850 | 7,805 | 8,373 | 9,944 | 10,803 | ||||||||||||||
Net interest income (tax equivalent) | 61,783 | 60,411 | 65,136 | 95,061 | 97,113 | ||||||||||||||
Provision for loan losses | 3,000 | 2,100 | 3,100 | 5,000 | 5,500 | ||||||||||||||
Net interest income after provision for loan losses | 58,783 | 58,311 | 62,036 | 90,061 | 91,613 | ||||||||||||||
Non-interest income | 13,957 | 14,010 | 13,857 | 18,802 | 16,081 | ||||||||||||||
Non-interest expense | 45,814 | 45,921 | 85,659 | 71,315 | 57,419 | ||||||||||||||
Income (loss) before income tax expense | 26,926 | 26,400 | (9,766 | ) | 37,548 | 50,275 | |||||||||||||
Income tax expense (benefit) (tax equivalent)* | 9,922 | 9,622 | (2,120 | ) | 13,355 | 17,484 | |||||||||||||
Net income (loss) | $ | 17,004 | $ | 16,778 | $ | (7,646 | ) | $ | 24,193 | $ | 32,791 | ||||||||
1 Includes loans held for sale, excludes allowance for loan losses. | |||||||||||||||||||
*Tax exempt income assumed at a statutory 35% federal tax rate. |
As of and for the Quarter Ended | ||||||||||||||||||||
Per Share Data | 12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | |||||||||||||||
Basic earnings (loss) per share | $ | 0.20 | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | |||||||||
Diluted earnings (loss) per share | 0.20 | 0.19 | (0.08 | ) | 0.19 | 0.25 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | |||||||||||||||
Tangible book value per share | 6.47 | 6.89 | 6.70 | 6.94 | 7.05 | |||||||||||||||
Shares of common stock outstanding | 83,927,572 | 91,121,531 | 129,709,834 | 129,769,569 | 130,006,926 | |||||||||||||||
Basic weighted average common shares outstanding | 83,831,380 | 87,839,029 | 91,565,972 | 129,733,911 | 129,812,551 | |||||||||||||||
Diluted weighted average common shares outstanding | 84,194,916 | 88,252,768 | 91,950,776 | 130,192,937 | 130,354,779 | |||||||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||
Return on average assets | 0.92 | % | 0.91 | % | (0.38 | )% | 0.85 | % | 1.12 | % | ||||||||||
Return on average equity | 6.93 | % | 6.59 | % | (2.79 | )% | 5.85 | % | 7.83 | % | ||||||||||
Return on average tangible equity 1 | 12.50 | % | 11.48 | % | (4.75 | )% | 10.82 | % | 14.28 | % | ||||||||||
Core operating efficiency 1 | 54.0 | % | 56.4 | % | 52.6 | % | 49.0 | % | 47.6 | % | ||||||||||
Analysis of Net Interest Income | ||||||||||||||||||||
Yield on loans | 4.74 | % | 4.66 | % | 4.60 | % | 4.75 | % | 4.65 | % | ||||||||||
Yield on investment securities - tax equivalent2 | 2.73 | % | 2.79 | % | 2.71 | % | 2.63 | % | 2.66 | % | ||||||||||
Yield on earning assets - tax equivalent2 | 4.17 | % | 4.11 | % | 4.03 | % | 4.15 | % | 4.09 | % | ||||||||||
Cost of deposits | 0.21 | % | 0.23 | % | 0.24 | % | 0.24 | % | 0.26 | % | ||||||||||
Cost of borrowings | 2.21 | % | 2.00 | % | 1.63 | % | 2.38 | % | 2.04 | % | ||||||||||
Cost of interest bearing liabilities | 0.67 | % | 0.66 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Net interest rate spread - tax equivalent basis2 | 3.50 | % | 3.45 | % | 3.40 | % | 3.52 | % | 3.46 | % | ||||||||||
Net interest margin - tax equivalent basis2 | 3.70 | % | 3.64 | % | 3.57 | % | 3.76 | % | 3.68 | % | ||||||||||
Capital | ||||||||||||||||||||
Tier 1 leverage ratio - Company | 8.21 | % | 9.46 | % | 12.86 | % | 9.13 | % | 8.94 | % | ||||||||||
Tier 1 leverage ratio - Bank only | 9.38 | % | 10.53 | % | 13.81 | % | 9.80 | % | 9.65 | % | ||||||||||
Tier 1 risk-based capital - Bank only | $ | 651,204 | $ | 739,580 | $ | 1,015,470 | $ | 1,032,930 | $ | 1,053,527 | ||||||||||
Total risk-based capital - Bank only | 693,973 | 782,859 | 1,060,333 | 1,081,086 | 1,104,221 | |||||||||||||||
Tangible equity as a % of tangible assets - consolidated 1 | 7.76 | % | 8.63 | % | 8.04 | % | 8.30 | % | 8.18 | % | ||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing loans (NPLs) non-accrual | $ | 45,859 | $ | 45,476 | $ | 68,419 | $ | 67,390 | $ | 65,737 | ||||||||||
Non-performing loans (NPLs) still accruing | 783 | 972 | 611 | 282 | 674 | |||||||||||||||
Other real estate owned | 5,867 | 8,231 | 9,575 | 11,831 | 14,614 | |||||||||||||||
Non-performing assets (NPAs) | 52,509 | 54,679 | 78,605 | 79,503 | 81,025 | |||||||||||||||
Net charge-offs | 1,238 | 1,590 | 1,667 | 1,706 | 2,967 | |||||||||||||||
Net charge-offs as a % of average loans (annualized) | 0.10 | % | 0.13 | % | 0.13 | % | 0.09 | % | 0.15 | % | ||||||||||
NPLs as a % of total loans | 0.97 | % | 0.94 | % | 0.95 | % | 0.90 | % | 0.84 | % | ||||||||||
NPAs as a % of total assets | 0.71 | % | 0.71 | % | 0.68 | % | 0.69 | % | 0.68 | % | ||||||||||
Allowance for loan losses as a % of NPLs | 90.8 | % | 92.3 | % | 64.2 | % | 70.4 | % | 75.5 | % | ||||||||||
Allowance for loan losses as a % of total loans | 0.88 | % | 0.87 | % | 0.61 | % | 0.63 | % | 0.64 | % | ||||||||||
Special mention loans | $ | 31,318 | $ | 26,057 | $ | 65,421 | $ | 91,076 | $ | 68,003 | ||||||||||
Substandard / doubtful loans | 74,901 | 74,252 | 125,994 | 120,836 | 130,378 | |||||||||||||||
1 See reconciliation of non-GAAP measures beginning on page 11. | ||||||||||||||||||||
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35% for all periods presented. |
For the Quarter Ended | |||||||||||||||||||||
September 30, 2015 | December 31, 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 | % | $ | 6,599,848 | $ | 79,009 | 4.75 | % | |||||||||
Consumer loans | 292,852 | 3,294 | 4.46 | % | 281,242 | 3,158 | 4.45 | % | |||||||||||||
Residential mortgage loans | 780,373 | 7,330 | 3.76 | % | 777,561 | 7,540 | 3.88 | % | |||||||||||||
Total net loans (1) | 7,331,559 | 87,774 | 4.75 | % | 7,658,651 | 89,707 | 4.65 | % | |||||||||||||
Securities taxable | 1,967,600 | 11,114 | 2.24 | % | 2,111,953 | 12,201 | 2.29 | % | |||||||||||||
Securities non-taxable | 446,875 | 4,876 | 4.33 | % | 429,633 | 4,831 | 4.46 | % | |||||||||||||
Interest earning deposits | 211,723 | 131 | 0.25 | % | 168,199 | 77 | 0.18 | % | |||||||||||||
FRB and FHLB stock | 81,074 | 1,110 | 5.43 | % | 91,732 | 1,100 | 4.76 | % | |||||||||||||
Total securities and other earning assets | 2,707,272 | 17,231 | 2.53 | % | 2,801,517 | 18,209 | 2.58 | % | |||||||||||||
Total interest earning assets | 10,038,831 | 105,005 | 4.15 | % | 10,460,168 | 107,916 | 4.09 | % | |||||||||||||
Non-interest earning assets | 1,204,039 | 1,162,453 | |||||||||||||||||||
Total assets | $ | 11,242,870 | $ | 11,622,621 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,418,803 | $ | 923 | 0.26 | % | $ | 1,485,690 | $ | 890 | 0.24 | % | |||||||||
Savings deposits (2) | 950,709 | 564 | 0.24 | % | 962,766 | 617 | 0.25 | % | |||||||||||||
Money market deposits | 2,548,181 | 2,961 | 0.46 | % | 2,808,734 | 3,283 | 0.46 | % | |||||||||||||
Certificates of deposit | 539,765 | 851 | 0.63 | % | 550,640 | 938 | 0.68 | % | |||||||||||||
Total interest bearing deposits | 5,457,458 | 5,299 | 0.39 | % | 5,807,830 | 5,728 | 0.39 | % | |||||||||||||
Senior notes | 98,727 | 1,474 | 5.97 | % | 98,827 | 1,476 | 5.97 | % | |||||||||||||
Other borrowings | 674,050 | 3,171 | 1.87 | % | 889,723 | 3,599 | 1.60 | % | |||||||||||||
Total borrowings | 772,777 | 4,645 | 2.38 | % | 988,550 | 5,075 | 2.04 | % | |||||||||||||
Total interest bearing liabilities | 6,230,235 | 9,944 | 0.63 | % | 6,796,380 | 10,803 | 0.63 | % | |||||||||||||
Non-interest bearing deposits | 3,234,450 | 3,017,727 | |||||||||||||||||||
Other non-interest bearing liabilities | 138,727 | 147,232 | |||||||||||||||||||
Total liabilities | 9,603,412 | 9,961,339 | |||||||||||||||||||
Stockholders’ equity | 1,639,458 | 1,661,282 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,242,870 | $ | 11,622,621 | |||||||||||||||||
Net interest rate spread (3) | 3.52 | % | 3.46 | % | |||||||||||||||||
Net interest earning assets (4) | $ | 3,808,596 | $ | 3,663,788 | |||||||||||||||||
Net interest margin | 95,061 | 3.76 | % | 97,113 | 3.68 | % | |||||||||||||||
Less tax equivalent adjustment | (1,707 | ) | (1,692 | ) | |||||||||||||||||
Net interest income | $ | 93,354 | $ | 95,421 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 161.1 | % | 153.9 | % |
As of and for the Quarter Ended | |||||||||||||||||||
12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | |||||||||||||||
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 | $ | 7,424,822 | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | |||||||||
Goodwill and other intangibles | (432,258 | ) | (452,698 | ) | (753,899 | ) | (751,529 | ) | (748,066 | ) | |||||||||
Tangible assets | 6,992,564 | 7,274,817 | 10,812,483 | 10,845,864 | 11,207,886 | ||||||||||||||
Stockholders’ equity | 975,200 | 1,080,543 | 1,623,110 | 1,652,204 | 1,665,073 | ||||||||||||||
Goodwill and other intangibles | (432,258 | ) | (452,698 | ) | (753,899 | ) | (751,529 | ) | (748,066 | ) | |||||||||
Tangible stockholders’ equity | 542,942 | 627,845 | 869,211 | 900,675 | 917,007 | ||||||||||||||
Common stock outstanding at period end | 83,927,572 | 91,121,531 | 129,709,834 | 129,769,569 | 130,006,926 | ||||||||||||||
Tangible equity as a % of tangible assets | 7.76 | % | 8.63 | % | 8.04 | % | 8.30 | % | 8.18 | % | |||||||||
Tangible book value per share | $ | 6.47 | $ | 6.89 | $ | 6.70 | $ | 6.94 | $ | 7.05 | |||||||||
The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity: | |||||||||||||||||||
Average stockholders’ equity | $ | 973,089 | $ | 1,031,809 | $ | 1,100,897 | $ | 1,639,458 | $ | 1,661,282 | |||||||||
Average goodwill and other intangibles | (433,396 | ) | (438,970 | ) | (455,320 | ) | (752,701 | ) | (750,334 | ) | |||||||||
Average tangible stockholders’ equity | 539,693 | 592,839 | 645,577 | 886,757 | 910,948 | ||||||||||||||
Net income (loss) | 17,004 | 16,778 | (7,646 | ) | 24,193 | 32,791 | |||||||||||||
Net income (loss), if annualized | 67,462 | 68,044 | (30,668 | ) | 95,983 | 130,095 | |||||||||||||
Return on average tangible equity | 12.50 | % | 11.48 | % | (4.75 | )% | 10.82 | % | 14.28 | % | |||||||||
Core net income (see reconciliation on page 12) | 19,615 | 18,501 | 21,361 | 32,035 | 33,525 | ||||||||||||||
Annualized core net income | 77,820 | 75,032 | 85,679 | 127,095 | 133,007 | ||||||||||||||
Core return on average tangible equity | 14.42 | % | 12.66 | % | 13.27 | % | 14.33 | % | 14.60 | % | |||||||||
The following table shows the reconciliation of return on tangible assets and core return on tangible assets: | |||||||||||||||||||
Average assets | $ | 7,340,332 | $ | 7,438,314 | $ | 8,049,220 | $ | 11,242,870 | $ | 11,622,621 | |||||||||
Average goodwill and other intangibles | (433,396 | ) | (438,970 | ) | (455,320 | ) | (752,701 | ) | (750,334 | ) | |||||||||
Average tangible assets | 6,906,936 | 6,999,344 | 7,593,900 | 10,490,169 | 10,872,287 | ||||||||||||||
Net income (loss) | 17,004 | 16,778 | (7,646 | ) | 24,193 | 32,791 | |||||||||||||
Net income (loss), if annualized | 67,462 | 68,044 | (30,668 | ) | 95,983 | 130,095 | |||||||||||||
Return on average tangible assets | 0.98 | % | 0.97 | % | (0.40 | )% | 0.91 | % | 1.20 | % | |||||||||
Core net income (see reconciliation on page 12) | 19,615 | 18,501 | 21,361 | 32,035 | 33,525 | ||||||||||||||
Annualized core net income | 77,820 | 75,032 | 85,679 | 127,095 | 133,007 | ||||||||||||||
Core return on average tangible assets | 1.13 | % | 1.07 | % | 1.13 | % | 1.21 | % | 1.22 | % |
As of and for the Quarter Ended | |||||||||||||||||||||
12/31/2014 | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | |||||||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio: | |||||||||||||||||||||
Net interest income | $ | 60,237 | $ | 58,867 | $ | 63,574 | $ | 93,354 | $ | 95,421 | |||||||||||
Non-interest income | 13,957 | 14,010 | 13,857 | 18,802 | 16,081 | ||||||||||||||||
Total net revenue | 74,194 | 72,877 | 77,431 | 112,156 | 111,502 | ||||||||||||||||
Tax equivalent adjustment on securities interest income | 1,546 | 1,544 | 1,562 | 1,707 | 1,692 | ||||||||||||||||
Net loss (gain) on sale of securities | 43 | (1,534 | ) | (697 | ) | (2,726 | ) | 121 | |||||||||||||
Core total revenue | 75,783 | 72,887 | 78,296 | 111,137 | 113,315 | ||||||||||||||||
Non-interest expense | 45,814 | 45,921 | 85,659 | 71,315 | 57,419 | ||||||||||||||||
Merger-related expense | (502 | ) | (2,455 | ) | (14,625 | ) | — | — | |||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (2,493 | ) | (971 | ) | (28,055 | ) | — | — | |||||||||||||
Charge on benefit plan settlement | — | — | — | (13,384 | ) | — | |||||||||||||||
Amortization of intangible assets | (1,873 | ) | (1,399 | ) | (1,780 | ) | (3,431 | ) | (3,431 | ) | |||||||||||
Core non-interest expense | 40,946 | 41,096 | 41,199 | 54,500 | 53,988 | ||||||||||||||||
Core operating efficiency ratio | 54.0 | % | 56.4 | % | 52.6 | % | 49.0 | % | 47.6 | % | |||||||||||
The following table shows the reconciliation of core net income and core earnings per share: | |||||||||||||||||||||
Income (loss) before income tax expense | $ | 25,380 | $ | 24,856 | $ | (11,328 | ) | $ | 35,841 | $ | 48,583 | ||||||||||
Income tax expense (benefit) | 8,376 | 8,078 | (3,682 | ) | 11,648 | 15,792 | |||||||||||||||
Net income (loss) | 17,004 | 16,778 | (7,646 | ) | 24,193 | 32,791 | |||||||||||||||
Net loss (gain) on sale of securities | 43 | (1,534 | ) | (697 | ) | (2,726 | ) | 121 | |||||||||||||
Merger-related expense | 502 | 2,455 | 14,625 | — | — | ||||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 2,493 | 971 | 28,055 | — | — | ||||||||||||||||
Charge on benefit plan settlement | — | — | — | 13,384 | — | ||||||||||||||||
Amortization of non-compete agreements and acquired customer list intangible assets | 859 | 660 | 991 | 961 | 961 | ||||||||||||||||
Total charges | 3,897 | 2,552 | 42,974 | 11,619 | 1,082 | ||||||||||||||||
Income tax (benefit) | (1,286 | ) | (829 | ) | (13,967 | ) | (3,777 | ) | (348 | ) | |||||||||||
Total non-core charges net of taxes | 2,611 | 1,723 | 29,007 | 7,842 | 734 | ||||||||||||||||
Core net income | $ | 19,615 | $ | 18,501 | $ | 21,361 | $ | 32,035 | $ | 33,525 | |||||||||||
Weighted average diluted shares | 84,194,916 | 88,252,768 | 91,950,776 | 130,192,937 | 130,354,779 | ||||||||||||||||
Diluted EPS as reported | $ | 0.20 | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | ||||||||||
Core diluted EPS (excluding total charges) | 0.23 | 0.21 | 0.23 | 0.25 | 0.26 |
For the Year Ended | ||||||||
December 31, 2014 | December 31, 2015 | |||||||
The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity: | ||||||||
Average stockholders’ equity | $ | 952,126 | $ | 1,360,858 | ||||
Average goodwill and other intangibles | (435,967 | ) | (600,605 | ) | ||||
Average tangible stockholders’ equity | 516,159 | 760,253 | ||||||
Net income | $ | 58,684 | $ | 66,114 | ||||
Return on average tangible equity | 11.37 | % | 8.70 | % | ||||
Core net income (see reconciliation on page 14) | $ | 66,663 | $ | 105,398 | ||||
Core return on average tangible equity | 12.92 | % | 13.86 | % | ||||
The following table shows the reconciliation of return on tangible assets and core return on tangible assets: | ||||||||
Average assets | $ | 7,090,442 | $ | 9,604,256 | ||||
Average goodwill and other intangibles | (435,967 | ) | (600,605 | ) | ||||
Average tangible assets | 6,654,475 | 9,003,651 | ||||||
Net income | 58,684 | 66,114 | ||||||
Return on average tangible assets | 0.88 | % | 0.73 | % | ||||
Core net income | $ | 66,663 | $ | 105,398 | ||||
Core return on average tangible assets | 1.00 | % | 1.17 | % | ||||
The following table shows the reconciliation of the core operating efficiency ratio: | ||||||||
Net interest income | $ | 232,349 | $ | 311,216 | ||||
Non-interest income | 52,179 | 62,751 | ||||||
Total net revenues | 284,528 | 373,967 | ||||||
Tax equivalent adjustment on securities | 6,010 | 6,503 | ||||||
(Gain) on sale of securities | (1,243 | ) | (4,837 | ) | ||||
Core total revenue | 289,295 | 375,633 | ||||||
Non-interest expense | 181,268 | 260,318 | ||||||
Merger-related expense | (890 | ) | (17,079 | ) | ||||
Charge for asset write-downs, banking systems conversion, retention, severance | (6,595 | ) | (29,046 | ) | ||||
Gain on sale of real estate and TRUPs redemption | 1,637 | — | ||||||
Charge on benefit plan settlement | (1,486 | ) | (13,384 | ) | ||||
Amortization of intangible assets | (9,406 | ) | (10,041 | ) | ||||
Core non-interest expense | 164,528 | 190,768 | ||||||
Core operating efficiency ratio | 56.9 | % | 50.8 | % |
For the Year Ended | ||||||||
December 31, 2014 | December 31, 2015 | |||||||
The following table shows the reconciliation of core net income and core earnings per share: | ||||||||
Income before income tax expense | $ | 84,160 | $ | 97,949 | ||||
Income tax expense | 25,476 | 31,835 | ||||||
Net income | 58,684 | 66,114 | ||||||
Net (gain) on sale of securities | (1,243 | ) | (4,837 | ) | ||||
Merger-related expense | 890 | 17,079 | ||||||
Charge for asset write-downs, banking systems conversion, retention, severance | 6,595 | 29,046 | ||||||
(Gain) on sale of real estate and TRUPs redemption | (1,637 | ) | — | |||||
Charge on benefit plan settlement | 1,486 | 13,384 | ||||||
Amortization of non-compete agreements | 5,350 | 3,526 | ||||||
Total charges | 11,441 | 58,198 | ||||||
Income tax (benefit) | (3,462 | ) | (18,914 | ) | ||||
Total non-core charges net of taxes | 7,979 | 39,284 | ||||||
Core net income | $ | 66,663 | $ | 105,398 | ||||
Weighted average diluted shares | 83,921,090 | 110,329,353 | ||||||
Diluted EPS as reported | $ | 0.70 | $ | 0.60 | ||||
Core diluted EPS (excluding total charges) | 0.79 | 0.96 |