Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated April 26, 2016. |
DATE: April 26, 2016 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 | Press Release of Sterling Bancorp, dated April 26, 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 | |
April 26, 2016 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
▪ | Total revenue2 was $109.2 million. |
▪ | Core net income1 was $32.2 million compared to $18.5 million for the first quarter of 2015, an increase of 73.8%. |
▪ | Core diluted earnings per share1 were $0.25, which represented growth of 19.0% over the first quarter of 2015. |
▪ | Tax equivalent net interest margin was 3.53% compared to 3.64% in the first quarter of 2015. |
▪ | Total non-interest income excluding securities losses was $15.7 million, which represented 14.4% of total revenue2 and growth of 25.9% over the first quarter of 2015. |
▪ | Core operating efficiency ratio1 was 48.9% compared to 56.4% in the first quarter of 2015. |
▪ | Annualized commercial loan3 growth of 25.0% (end of period balances including acquired loans) and 5.6% (average balances) over the linked quarter. |
▪ | Annualized core deposit4 growth of 36.6% (end of period balances) over the linked quarter. |
▪ | Loans to deposits ratio of 88.8%; total deposits were $9.3 billion with over 91.5% core deposits4 and a total cost of deposits of 0.29%. |
▪ | Core return on average tangible assets1 was 1.15% compared to 1.07% in the first quarter of 2015. |
▪ | Core return on average tangible equity1 was 13.78% compared to 12.66% in the first quarter of 2015. |
▪ | Completed a $110.0 million subordinated notes offering at Sterling National Bank, adding to Tier 2 capital. |
▪ | Completed the acquisition of NewStar Business Credit, LLC (“NSBC”) doubling the size of our asset-based loan portfolio to $629.8 million. |
▪ | Announced the pending sale of our trust division to Midland States Bank, expected to be complete in Q3 2016. |
▪ | Repayment of $220.0 million of Federal Home Loan Bank (“FHLB”) advances with a weighted average rate of 4.17%. |
▪ | Total assets were $12.9 billion. |
▪ | Total loans, including loans held for sale, were $8.3 billion. |
▪ | Commercial and industrial (“C&I”) loans (which includes traditional C&I, asset-based lending, payroll finance, factoring and warehouse lending) represented 41.2%, commercial real estate loans represented 44.4%, consumer and residential mortgage loans represented 12.2%, and acquisition, development and construction loans represented 2.2% of the total loan portfolio. |
▪ | Commercial loan growth, which includes all C&I loans, commercial real estate and acquisition development and construction loans, was $425.5 million for the quarter ended March 31, 2016. Organic loan growth, which excludes the NSBC acquisition, was $102.9 million, and represented annualized growth of 6.0% over the prior quarter. Average commercial loans were $6.7 billion for the first quarter of 2016 compared to $6.6 billion for the linked quarter. |
▪ | The allowance for loan losses was $53.0 million and represented 0.64% of total loans. Loans acquired in prior merger transactions were recorded at fair value at the acquisition date and at March 31, 2016; the remaining purchase accounting adjustments on acquired loan were $44.2 million. The ratio of total valuation balances recorded against portfolio loans to adjusted gross portfolio loans was 1.17%. See a reconciliation of this non-GAAP measure on page 14. |
▪ | Investment securities, excluding FHLB and FRB stock, were $2.8 billion and represented 22.1% of total assets. |
▪ | Core deposits were $8.5 billion and represented 91.5% of total deposits. |
▪ | Total deposits were $9.3 billion compared to $8.6 billion at December 31, 2015. Average deposits were $8.9 billion compared to $8.8 billion for the linked quarter. |
▪ | Borrowings were $1.7 billion compared to $1.5 billion at December 31, 2015. Average borrowings were $1.3 billion compared to $988.6 million for the linked quarter. |
▪ | Tangible book value per share was $7.09. |
3/31/2015 | 12/31/2015 | 3/31/2016 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 186,701 | $ | 229,513 | $ | 486,730 | |||||
Investment securities | 1,800,037 | 2,643,823 | 2,847,742 | ||||||||
Loans held for sale | 53,737 | 34,110 | 27,237 | ||||||||
Portfolio loans: | |||||||||||
Residential mortgage | 494,106 | 713,036 | 718,733 | ||||||||
Commercial real estate | 1,916,937 | 3,529,381 | 3,676,214 | ||||||||
Commercial and industrial | 2,232,442 | 3,131,028 | 3,416,538 | ||||||||
Acquisition, development and construction | 95,567 | 186,398 | 179,517 | ||||||||
Consumer | 199,854 | 299,517 | 295,161 | ||||||||
Total portfolio loans, gross | 4,938,906 | 7,859,360 | 8,286,163 | ||||||||
Allowance for loan losses | (42,884 | ) | (50,145 | ) | (53,014 | ) | |||||
Total portfolio loans, net | 4,896,022 | 7,809,215 | 8,233,149 | ||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock, at cost | 68,864 | 116,758 | 118,330 | ||||||||
Accrued interest receivable | 21,367 | 31,531 | 33,392 | ||||||||
Premises and equipment, net | 45,076 | 63,362 | 62,432 | ||||||||
Goodwill | 400,941 | 670,699 | 696,600 | ||||||||
Other intangibles | 51,757 | 77,367 | 75,790 | ||||||||
Bank owned life insurance | 151,323 | 196,288 | 197,615 | ||||||||
Other real estate owned | 8,231 | 14,614 | 14,527 | ||||||||
Other assets | 43,459 | 68,672 | 71,812 | ||||||||
Total assets | $ | 7,727,515 | $ | 11,955,952 | $ | 12,865,356 | |||||
Liabilities: | |||||||||||
Deposits | $ | 5,555,946 | $ | 8,580,007 | $ | 9,328,622 | |||||
FHLB borrowings | 857,138 | 1,409,885 | 1,444,817 | ||||||||
Other borrowings | 25,245 | 16,566 | 23,571 | ||||||||
Senior notes | 98,595 | 98,893 | 98,996 | ||||||||
Subordinated notes | — | — | 108,124 | ||||||||
Mortgage escrow funds | 5,805 | 13,778 | 14,972 | ||||||||
Other liabilities | 104,243 | 171,750 | 148,121 | ||||||||
Total liabilities | 6,646,972 | 10,290,879 | 11,167,223 | ||||||||
Stockholders’ equity: | |||||||||||
Common stock | 981 | 1,367 | 1,367 | ||||||||
Additional paid-in capital | 943,764 | 1,506,612 | 1,501,417 | ||||||||
Treasury stock | (79,530 | ) | (76,190 | ) | (70,142 | ) | |||||
Retained earnings | 220,067 | 245,408 | 261,332 | ||||||||
Accumulated other comprehensive (loss) income | (4,739 | ) | (12,124 | ) | 4,159 | ||||||
Total stockholders’ equity | 1,080,543 | 1,665,073 | 1,698,133 | ||||||||
Total liabilities and stockholders’ equity | $ | 7,727,515 | $ | 11,955,952 | $ | 12,865,356 | |||||
Shares of common stock outstanding at period end | 91,121,531 | 130,006,926 | 130,548,989 | ||||||||
Book value per share | $ | 11.86 | $ | 12.81 | $ | 13.01 | |||||
Tangible book value per share | 6.89 | 7.05 | 7.09 |
For the Quarter Ended | ||||||||||||
3/31/2015 | 12/31/2015 | 3/31/2016 | ||||||||||
Interest and dividend income: | ||||||||||||
Loans and loan fees | $ | 55,271 | $ | 89,707 | $ | 89,034 | ||||||
Securities taxable | 7,632 | 12,201 | 12,016 | |||||||||
Securities non-taxable | 2,867 | 3,139 | 3,879 | |||||||||
Other earning assets | 902 | 1,177 | 1,077 | |||||||||
Total interest and dividend income | 66,672 | 106,224 | 106,006 | |||||||||
Interest expense: | ||||||||||||
Deposits | 3,091 | 5,728 | 6,409 | |||||||||
Borrowings | 4,714 | 5,075 | 6,087 | |||||||||
Total interest expense | 7,805 | 10,803 | 12,496 | |||||||||
Net interest income | 58,867 | 95,421 | 93,510 | |||||||||
Provision for loan losses | 2,100 | 5,500 | 4,000 | |||||||||
Net interest income after provision for loan losses | 56,767 | 89,921 | 89,510 | |||||||||
Non-interest income: | ||||||||||||
Accounts receivable / factoring commissions and other fees | 3,502 | 4,389 | 4,494 | |||||||||
Mortgage banking income | 3,157 | 2,762 | 2,002 | |||||||||
Deposit fees and service charges | 3,622 | 4,241 | 4,496 | |||||||||
Net gain (loss) on sale of securities | 1,534 | (121 | ) | (283 | ) | |||||||
Bank owned life insurance | 1,076 | 1,792 | 1,327 | |||||||||
Investment management fees | 360 | 877 | 1,124 | |||||||||
Other | 759 | 2,141 | 2,270 | |||||||||
Total non-interest income | 14,010 | 16,081 | 15,430 | |||||||||
Non-interest expense: | ||||||||||||
Compensation and benefits | 23,165 | 29,868 | 30,020 | |||||||||
Stock-based compensation plans | 1,109 | 1,281 | 1,540 | |||||||||
Occupancy and office operations | 6,580 | 9,306 | 9,282 | |||||||||
Amortization of intangible assets | 1,399 | 3,431 | 3,053 | |||||||||
FDIC insurance and regulatory assessments | 1,428 | 2,287 | 2,258 | |||||||||
Other real estate owned, net (income) expense | (37 | ) | 87 | 582 | ||||||||
Merger-related expenses | 2,455 | — | 265 | |||||||||
Loss on extinguishment of FHLB borrowings | — | — | 8,716 | |||||||||
Other | 9,822 | 11,159 | 13,215 | |||||||||
Total non-interest expense | 45,921 | 57,419 | 68,931 | |||||||||
Income before income tax expense | 24,856 | 48,583 | 36,009 | |||||||||
Income tax expense | 8,078 | 15,792 | 12,243 | |||||||||
Net income | $ | 16,778 | $ | 32,791 | $ | 23,766 | ||||||
Weighted average common shares: | ||||||||||||
Basic | 87,839,029 | 129,812,551 | 129,974,025 | |||||||||
Diluted | 88,252,768 | 130,354,779 | 130,500,975 | |||||||||
Earnings per common share: | ||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.25 | $ | 0.18 | ||||||
Diluted earnings per share | 0.19 | 0.25 | 0.18 | |||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | |||||||||
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | ||||||||||||||
Total assets | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | $ | 12,865,356 | |||||||||
Tangible assets 1 | 7,274,817 | 10,812,483 | 10,845,864 | 11,207,886 | 12,092,966 | ||||||||||||||
Securities available for sale | 1,214,404 | 2,081,414 | 1,854,862 | 1,921,032 | 1,894,820 | ||||||||||||||
Securities held to maturity | 585,633 | 585,196 | 673,130 | 722,791 | 952,922 | ||||||||||||||
Portfolio loans | 4,938,906 | 7,235,587 | 7,525,632 | 7,859,360 | 8,286,163 | ||||||||||||||
Goodwill | 400,941 | 669,590 | 670,699 | 670,699 | 696,600 | ||||||||||||||
Other intangibles | 51,757 | 84,309 | 80,830 | 77,367 | 75,790 | ||||||||||||||
Deposits | 5,555,946 | 8,836,161 | 8,805,411 | 8,580,007 | 9,328,622 | ||||||||||||||
Municipal deposits (included above) | 1,013,835 | 1,212,624 | 1,352,846 | 1,140,206 | 1,285,263 | ||||||||||||||
Borrowings | 980,978 | 914,921 | 948,048 | 1,525,344 | 1,675,508 | ||||||||||||||
Stockholders’ equity | 1,080,543 | 1,623,110 | 1,652,204 | 1,665,073 | 1,698,133 | ||||||||||||||
Tangible equity 1 | 627,845 | 869,211 | 900,675 | 917,007 | 925,743 | ||||||||||||||
Quarterly Average Balances | |||||||||||||||||||
Total assets | 7,438,314 | 8,049,220 | 11,242,870 | 11,622,621 | 12,001,370 | ||||||||||||||
Tangible assets 1 | 6,999,344 | 7,593,900 | 10,490,169 | 10,872,287 | 11,253,958 | ||||||||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 531,421 | 539,569 | 780,373 | 777,561 | 755,564 | ||||||||||||||
Commercial real estate | 1,908,582 | 2,040,094 | 3,253,183 | 3,444,774 | 3,587,341 | ||||||||||||||
Commercial and industrial: | |||||||||||||||||||
Commercial and industrial | 898,839 | 966,411 | 1,295,034 | 1,378,642 | 1,381,107 | ||||||||||||||
Asset based lending | 296,409 | 297,846 | 303,387 | 304,113 | 304,779 | ||||||||||||||
Payroll finance | 158,493 | 170,905 | 175,240 | 199,856 | 192,428 | ||||||||||||||
Warehouse lending | 157,038 | 263,802 | 286,557 | 293,387 | 248,831 | ||||||||||||||
Factored receivables | 134,105 | 150,569 | 192,380 | 210,081 | 181,974 | ||||||||||||||
Equipment financing | 423,510 | 477,369 | 578,655 | 587,445 | 616,995 | ||||||||||||||
Total commercial and industrial | 2,068,394 | 2,326,902 | 2,831,253 | 2,973,524 | 2,926,114 | ||||||||||||||
Acquisition, development and construction | 97,865 | 97,197 | 173,898 | 181,550 | 179,420 | ||||||||||||||
Consumer | 200,504 | 202,044 | 292,852 | 281,242 | 297,028 | ||||||||||||||
Loans, total 2 | 4,806,766 | 5,205,806 | 7,331,559 | 7,658,651 | 7,745,467 | ||||||||||||||
Interest bearing cash and cash equivalents | 113,152 | 114,128 | 211,723 | 168,199 | 296,668 | ||||||||||||||
Securities (taxable) | 1,379,861 | 1,527,872 | 1,967,600 | 2,111,953 | 2,139,547 | ||||||||||||||
Securities (non-taxable) | 386,326 | 380,544 | 446,875 | 429,633 | 593,777 | ||||||||||||||
Total earning assets | 6,736,422 | 7,309,667 | 10,038,831 | 10,460,168 | 10,880,356 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,503,692 | 1,548,844 | 3,234,450 | 3,017,727 | 3,009,085 | ||||||||||||||
Interest bearing demand | 775,714 | 823,471 | 1,418,803 | 1,485,690 | 1,607,227 | ||||||||||||||
Savings (including mortgage escrow funds) | 766,448 | 802,956 | 950,709 | 962,766 | 814,485 | ||||||||||||||
Money market | 1,851,839 | 1,922,805 | 2,548,181 | 2,808,734 | 2,866,666 | ||||||||||||||
Certificates of deposit | 452,594 | 536,394 | 539,765 | 550,640 | 619,154 | ||||||||||||||
Total deposits and mortgage escrow | 5,350,287 | 5,634,470 | 8,691,908 | 8,825,557 | 8,916,617 | ||||||||||||||
Borrowings | 955,677 | 1,234,958 | 772,777 | 988,550 | 1,274,605 | ||||||||||||||
Stockholders’ equity | 1,031,809 | 1,100,897 | 1,639,458 | 1,661,282 | 1,686,274 | ||||||||||||||
Tangible equity 1 | 592,839 | 645,577 | 886,757 | 910,948 | 938,862 | ||||||||||||||
1 See a reconciliation of this Non-GAAP Financial Measure on page 12. | |||||||||||||||||||
2 Includes loans held for sale, excludes allowance for loan losses. |
As of and for the Quarter Ended | |||||||||||||||||||
Per Share Data | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | ||||||||||||||
Basic earnings (loss) per share | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | $ | 0.18 | ||||||||
Diluted earnings (loss) per share | 0.19 | (0.08 | ) | 0.19 | 0.25 | 0.18 | |||||||||||||
Core earnings per share 1 | 0.21 | 0.23 | 0.25 | 0.26 | 0.25 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Tangible book value per share | 6.89 | 6.70 | 6.94 | 7.05 | 7.09 | ||||||||||||||
Shares of common stock o/s | 91,121,531 | 129,709,834 | 129,769,569 | 130,006,926 | 130,548,989 | ||||||||||||||
Basic weighted average common shares o/s | 87,839,029 | 91,565,972 | 129,733,911 | 129,812,551 | 129,974,025 | ||||||||||||||
Diluted weighted average common shares o/s | 88,252,768 | 91,950,776 | 130,192,937 | 130,354,779 | 130,500,975 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | 0.91 | % | (0.38 | )% | 0.85 | % | 1.12 | % | 0.80 | % | |||||||||
Return on average equity | 6.59 | % | (2.79 | )% | 5.85 | % | 7.83 | % | 5.67 | % | |||||||||
Return on average tangible assets 1 | 0.97 | % | (0.40 | )% | 0.91 | % | 1.20 | % | 0.85 | % | |||||||||
Return on average tangible equity 1 | 11.48 | % | (4.75 | )% | 10.82 | % | 14.28 | % | 10.18 | % | |||||||||
Core return on average tangible assets 1 | 1.07 | % | 1.13 | % | 1.21 | % | 1.22 | % | 1.15 | % | |||||||||
Core return on average tangible equity 1 | 12.66 | % | 13.27 | % | 14.33 | % | 14.60 | % | 13.78 | % | |||||||||
Core operating efficiency 1 | 56.4 | % | 52.6 | % | 49.0 | % | 47.6 | % | 48.9 | % | |||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Yield on loans | 4.66 | % | 4.60 | % | 4.75 | % | 4.65 | % | 4.62 | % | |||||||||
Yield on investment securities - tax equivalent 2 | 2.79 | % | 2.71 | % | 2.63 | % | 2.66 | % | 2.65 | % | |||||||||
Yield on interest earning assets - tax equivalent 2 | 4.11 | % | 4.03 | % | 4.15 | % | 4.09 | % | 4.00 | % | |||||||||
Cost of total deposits | 0.23 | % | 0.24 | % | 0.24 | % | 0.26 | % | 0.29 | % | |||||||||
Cost of borrowings | 2.00 | % | 1.63 | % | 2.38 | % | 2.04 | % | 1.92 | % | |||||||||
Cost of interest bearing liabilities | 0.66 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.70 | % | |||||||||
Net interest rate spread - tax equivalent basis 2 | 3.45 | % | 3.40 | % | 3.52 | % | 3.46 | % | 3.30 | % | |||||||||
Net interest margin - GAAP basis | 3.45 | % | 3.49 | % | 3.69 | % | 3.62 | % | 3.46 | % | |||||||||
Net interest margin - tax equivalent basis 2 | 3.64 | % | 3.57 | % | 3.76 | % | 3.68 | % | 3.53 | % | |||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company 3 | 9.55 | % | 12.92 | % | 9.12 | % | 9.03 | % | 8.61 | % | |||||||||
Tier 1 leverage ratio - Bank only 3 | 10.53 | % | 13.81 | % | 9.80 | % | 9.65 | % | 9.16 | % | |||||||||
Tier 1 risk-based capital - Bank only 3 | $ | 739,580 | $ | 1,015,470 | $ | 1,032,930 | $ | 1,053,527 | $ | 1,032,118 | |||||||||
Total risk-based capital - Bank only 3 | 782,859 | 1,060,332 | 1,081,090 | 1,104,221 | 1,193,801 | ||||||||||||||
Tangible equity to tangible assets - Company 1 | 8.63 | % | 8.04 | % | 8.30 | % | 8.18 | % | 7.66 | % | |||||||||
Condensed Five Quarter Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 66,672 | $ | 71,947 | $ | 103,298 | $ | 106,224 | $ | 106,006 | |||||||||
Interest expense | 7,805 | 8,373 | 9,944 | 10,803 | 12,496 | ||||||||||||||
Net interest income | 58,867 | 63,574 | 93,354 | 95,421 | 93,510 | ||||||||||||||
Provision for loan losses | 2,100 | 3,100 | 5,000 | 5,500 | 4,000 | ||||||||||||||
Net interest income after provision for loan losses | 56,767 | 60,474 | 88,354 | 89,921 | 89,510 | ||||||||||||||
Non-interest income | 14,010 | 13,857 | 18,802 | 16,081 | 15,430 | ||||||||||||||
Non-interest expense | 45,921 | 85,659 | 71,315 | 57,419 | 68,931 | ||||||||||||||
Income (loss) before income tax expense | 24,856 | (11,328 | ) | 35,841 | 48,583 | 36,009 | |||||||||||||
Income tax expense (benefit) | 8,078 | (3,682 | ) | 11,648 | 15,792 | 12,243 | |||||||||||||
Net income (loss) | $ | 16,778 | $ | (7,646 | ) | $ | 24,193 | $ | 32,791 | $ | 23,766 | ||||||||
1 See a reconciliation of Non-GAAP Financial Measures beginning on page 12. | |||||||||||||||||||
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35%. | |||||||||||||||||||
3 Regulatory capital amounts and ratios are preliminary estimates pending filing of the Company's and Bank's regulatory reports. |
As of and for the Quarter Ended | |||||||||||||||||||
Allowance for Loan Losses Roll Forward | 3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | ||||||||||||||
Balance, beginning of period | $ | 42,374 | $ | 42,884 | $ | 44,317 | $ | 47,611 | $ | 50,145 | |||||||||
Provision for loan losses | 2,100 | 3,100 | 5,000 | 5,500 | 4,000 | ||||||||||||||
Loan charge-offs: | |||||||||||||||||||
Commercial & industrial | (842 | ) | (228 | ) | (224 | ) | (281 | ) | (489 | ) | |||||||||
Payroll finance | (303 | ) | (59 | ) | (44 | ) | — | — | |||||||||||
Warehouse lending | — | — | — | — | — | ||||||||||||||
Factored receivables | (72 | ) | (146 | ) | (52 | ) | (21 | ) | (81 | ) | |||||||||
Equipment financing | (153 | ) | (438 | ) | (1,369 | ) | (1,463 | ) | (457 | ) | |||||||||
Commercial real estate | (62 | ) | (276 | ) | (223 | ) | (1,134 | ) | (4 | ) | |||||||||
Multi-family | (17 | ) | — | — | — | — | |||||||||||||
ADC | — | — | — | — | — | ||||||||||||||
Residential mortgage | (181 | ) | — | (546 | ) | (524 | ) | (224 | ) | ||||||||||
Consumer | (342 | ) | (821 | ) | (387 | ) | (810 | ) | (511 | ) | |||||||||
Total charge offs | (1,972 | ) | (1,968 | ) | (2,845 | ) | (4,233 | ) | (1,766 | ) | |||||||||
Recoveries of loans previously charged-off: | |||||||||||||||||||
Commercial & industrial | 101 | 163 | 781 | 675 | 329 | ||||||||||||||
Payroll finance | 11 | — | — | 24 | 4 | ||||||||||||||
Warehouse lending | — | — | — | — | — | ||||||||||||||
Factored receivables | 19 | 9 | 18 | 14 | 24 | ||||||||||||||
Equipment financing | 172 | 96 | 148 | 409 | 108 | ||||||||||||||
Commercial real estate | 16 | — | 76 | 56 | 21 | ||||||||||||||
Multi-family | — | — | — | 9 | 2 | ||||||||||||||
ADC | 9 | — | — | 43 | — | ||||||||||||||
Residential mortgage | 2 | 9 | 81 | — | 28 | ||||||||||||||
Consumer | 52 | 24 | 35 | 37 | 119 | ||||||||||||||
Total recoveries | 382 | 301 | 1,139 | 1,267 | 635 | ||||||||||||||
Net loan charge-offs | (1,590 | ) | (1,667 | ) | (1,706 | ) | (2,966 | ) | (1,131 | ) | |||||||||
Balance, end of period | $ | 42,884 | $ | 44,317 | $ | 47,611 | $ | 50,145 | $ | 53,014 | |||||||||
Asset Quality Data and Ratios | |||||||||||||||||||
Non-performing loans (NPLs) non-accrual | $ | 45,476 | $ | 68,419 | $ | 67,390 | $ | 65,737 | $ | 84,436 | |||||||||
NPLs still accruing | 972 | 611 | 282 | 674 | 1,002 | ||||||||||||||
Total NPLs | 46,448 | 69,030 | 67,672 | 66,411 | 85,438 | ||||||||||||||
Other real estate owned | 8,231 | 9,575 | 11,831 | 14,614 | 14,527 | ||||||||||||||
Non-performing assets (NPAs) | $ | 54,679 | $ | 78,605 | $ | 79,503 | $ | 81,025 | $ | 99,965 | |||||||||
Loans 30 to 89 days past due | $ | 35,267 | $ | 40,957 | $ | 30,881 | $ | 67,996 | $ | 19,168 | |||||||||
Net charge-offs as a % of average loans (annualized) | 0.13 | % | 0.13 | % | 0.09 | % | 0.15 | % | 0.06 | % | |||||||||
NPLs as a % of total loans | 0.94 | % | 0.95 | % | 0.90 | % | 0.84 | % | 1.03 | % | |||||||||
NPAs as a % of total assets | 0.71 | % | 0.68 | % | 0.69 | % | 0.68 | % | 0.78 | % | |||||||||
Allowance for loan losses as a % of NPLs | 92.3 | % | 64.2 | % | 70.4 | % | 75.5 | % | 62.0 | % | |||||||||
Allowance for loan losses as a % of total loans | 0.87 | % | 0.61 | % | 0.63 | % | 0.64 | % | 0.64 | % | |||||||||
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans 1 | 0.97 | % | 1.36 | % | 1.28 | % | 1.16 | % | 1.17 | % | |||||||||
Special mention loans | $ | 26,057 | $ | 65,421 | $ | 91,076 | $ | 68,003 | $ | 101,560 | |||||||||
Substandard loans | 74,095 | 125,602 | 120,684 | 129,665 | 131,919 | ||||||||||||||
Doubtful loans | 157 | 392 | 152 | 713 | 556 | ||||||||||||||
1 See a reconciliation of this non-GAAP measure on page 14. |
For the Quarter Ended | |||||||||||||||||||||
December 31, 2015 | March 31, 2016 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Commercial loans | $ | 6,599,848 | $ | 79,009 | 4.75 | % | $ | 6,692,875 | $ | 78,137 | 4.70 | % | |||||||||
Consumer loans | 281,242 | 3,158 | 4.45 | % | 297,028 | 3,296 | 4.46 | % | |||||||||||||
Residential mortgage loans | 777,561 | 7,540 | 3.88 | % | 755,564 | 7,601 | 4.02 | % | |||||||||||||
Total net loans 1 | 7,658,651 | 89,707 | 4.65 | % | 7,745,467 | 89,034 | 4.62 | % | |||||||||||||
Securities taxable | 2,111,953 | 12,201 | 2.29 | % | 2,139,547 | 12,016 | 2.26 | % | |||||||||||||
Securities non-taxable | 429,633 | 4,831 | 4.46 | % | 593,777 | 5,968 | 4.04 | % | |||||||||||||
Interest earning deposits | 168,199 | 77 | 0.18 | % | 296,668 | 311 | 0.42 | % | |||||||||||||
FRB and FHLB stock | 91,732 | 1,100 | 4.76 | % | 104,897 | 766 | 2.94 | % | |||||||||||||
Total securities and other earning assets | 2,801,517 | 18,209 | 2.58 | % | 3,134,889 | 19,061 | 2.45 | % | |||||||||||||
Total interest earning assets | 10,460,168 | 107,916 | 4.09 | % | 10,880,356 | 108,095 | 4.00 | % | |||||||||||||
Non-interest earning assets | 1,162,453 | 1,121,014 | |||||||||||||||||||
Total assets | $ | 11,622,621 | $ | 12,001,370 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,485,690 | $ | 890 | 0.24 | % | $ | 1,607,227 | $ | 1,004 | 0.25 | % | |||||||||
Savings deposits 2 | 962,766 | 617 | 0.25 | % | 814,485 | 606 | 0.30 | % | |||||||||||||
Money market deposits | 2,808,734 | 3,283 | 0.46 | % | 2,866,666 | 3,672 | 0.52 | % | |||||||||||||
Certificates of deposit | 550,640 | 938 | 0.68 | % | 619,154 | 1,127 | 0.73 | % | |||||||||||||
Total interest bearing deposits | 5,807,830 | 5,728 | 0.39 | % | 5,907,532 | 6,409 | 0.44 | % | |||||||||||||
Senior notes | 98,827 | 1,476 | 5.97 | % | 98,928 | 1,478 | 5.98 | % | |||||||||||||
Other borrowings | 889,723 | 3,599 | 1.60 | % | 1,172,112 | 4,560 | 1.56 | % | |||||||||||||
Subordinated notes | — | — | — | % | 3,565 | 49 | 5.50 | % | |||||||||||||
Total borrowings | 988,550 | 5,075 | 2.04 | % | 1,274,605 | 6,087 | 1.92 | % | |||||||||||||
Total interest bearing liabilities | 6,796,380 | 10,803 | 0.63 | % | 7,182,137 | 12,496 | 0.70 | % | |||||||||||||
Non-interest bearing deposits | 3,017,727 | 3,009,085 | |||||||||||||||||||
Other non-interest bearing liabilities | 147,232 | 123,874 | |||||||||||||||||||
Total liabilities | 9,961,339 | 10,315,096 | |||||||||||||||||||
Stockholders’ equity | 1,661,282 | 1,686,274 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,622,621 | $ | 12,001,370 | |||||||||||||||||
Net interest rate spread 3 | 3.46 | % | 3.30 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 3,663,788 | $ | 3,698,219 | |||||||||||||||||
Net interest margin - tax equivalent | 97,113 | 3.68 | % | 95,599 | 3.53 | % | |||||||||||||||
Less tax equivalent adjustment | (1,692 | ) | (2,089 | ) | |||||||||||||||||
Net interest income | $ | 95,421 | $ | 93,510 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 153.9 | % | 151.5 | % |
As of and for the Quarter Ended | |||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | |||||||||||||||
The Company provides supplemental reporting of Non-GAAP Financial Measures as management believes this information is useful to investors. See legend on page 14. | |||||||||||||||||||
The following table shows the reconciliation of stockholders’ equity to tangible equity and the tangible equity ratio1: | |||||||||||||||||||
Total assets | $ | 7,727,515 | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | $ | 12,865,356 | |||||||||
Goodwill and other intangibles | (452,698 | ) | (753,899 | ) | (751,529 | ) | (748,066 | ) | (772,390 | ) | |||||||||
Tangible assets | 7,274,817 | 10,812,483 | 10,845,864 | 11,207,886 | 12,092,966 | ||||||||||||||
Stockholders’ equity | 1,080,543 | 1,623,110 | 1,652,204 | 1,665,073 | 1,698,133 | ||||||||||||||
Goodwill and other intangibles | (452,698 | ) | (753,899 | ) | (751,529 | ) | (748,066 | ) | (772,390 | ) | |||||||||
Tangible stockholders’ equity | 627,845 | 869,211 | 900,675 | 917,007 | 925,743 | ||||||||||||||
Common stock outstanding at period end | 91,121,531 | 129,709,834 | 129,769,569 | 130,006,926 | 130,548,989 | ||||||||||||||
Tangible equity as a % of tangible assets | 8.63 | % | 8.04 | % | 8.30 | % | 8.18 | % | 7.66 | % | |||||||||
Tangible book value per share | $ | 6.89 | $ | 6.70 | $ | 6.94 | $ | 7.05 | $ | 7.09 | |||||||||
The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity2: | |||||||||||||||||||
Average stockholders’ equity | $ | 1,031,809 | $ | 1,100,897 | $ | 1,639,458 | $ | 1,661,282 | $ | 1,686,274 | |||||||||
Average goodwill and other intangibles | (438,970 | ) | (455,320 | ) | (752,701 | ) | (750,334 | ) | (747,412 | ) | |||||||||
Average tangible stockholders’ equity | 592,839 | 645,577 | 886,757 | 910,948 | 938,862 | ||||||||||||||
Net income (loss) | 16,778 | (7,646 | ) | 24,193 | 32,791 | 23,766 | |||||||||||||
Net income (loss), if annualized | 68,044 | (30,668 | ) | 95,983 | 130,095 | 95,586 | |||||||||||||
Return on average tangible equity | 11.48 | % | (4.75 | )% | 10.82 | % | 14.28 | % | 10.18 | % | |||||||||
Core net income (see reconciliation on page 13) | $ | 18,501 | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | |||||||||
Annualized core net income | 75,032 | 85,679 | 127,095 | 133,007 | 129,343 | ||||||||||||||
Core return on average tangible equity | 12.66 | % | 13.27 | % | 14.33 | % | 14.60 | % | 13.78 | % | |||||||||
The following table shows the reconciliation of return on tangible assets and core return on tangible assets3: | |||||||||||||||||||
Average assets | $ | 7,438,314 | $ | 8,049,220 | $ | 11,242,870 | $ | 11,622,621 | $ | 12,001,370 | |||||||||
Average goodwill and other intangibles | (438,970 | ) | (455,320 | ) | (752,701 | ) | (750,334 | ) | (747,412 | ) | |||||||||
Average tangible assets | 6,999,344 | 7,593,900 | 10,490,169 | 10,872,287 | 11,253,958 | ||||||||||||||
Net income (loss) | 16,778 | (7,646 | ) | 24,193 | 32,791 | 23,766 | |||||||||||||
Net income (loss), if annualized | 68,044 | (30,668 | ) | 95,983 | 130,095 | 95,586 | |||||||||||||
Return on average tangible assets | 0.97 | % | (0.40 | )% | 0.91 | % | 1.20 | % | 0.85 | % | |||||||||
Core net income (see reconciliation on page 13) | $ | 18,501 | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | |||||||||
Annualized core net income | 75,032 | 85,679 | 127,095 | 133,007 | 129,343 | ||||||||||||||
Core return on average tangible assets | 1.07 | % | 1.13 | % | 1.21 | % | 1.22 | % | 1.15 | % |
As of and for the Quarter Ended | |||||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | |||||||||||||||||
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend on page 14. | |||||||||||||||||||||
The following table shows the reconciliation of the core operating efficiency ratio4: | |||||||||||||||||||||
Net interest income | $ | 58,867 | $ | 63,574 | $ | 93,354 | $ | 95,421 | $ | 93,510 | |||||||||||
Non-interest income | 14,010 | 13,857 | 18,802 | 16,081 | 15,430 | ||||||||||||||||
Total net revenue | 72,877 | 77,431 | 112,156 | 111,502 | 108,940 | ||||||||||||||||
Tax equivalent adjustment on securities interest income | 1,544 | 1,562 | 1,707 | 1,692 | 2,091 | ||||||||||||||||
Net (gain) loss on sale of securities | (1,534 | ) | (697 | ) | (2,726 | ) | 121 | 283 | |||||||||||||
Core total revenue | 72,887 | 78,296 | 111,137 | 113,315 | 111,314 | ||||||||||||||||
Non-interest expense | 45,921 | 85,659 | 71,315 | 57,419 | 68,931 | ||||||||||||||||
Merger-related expense | (2,455 | ) | (14,625 | ) | — | — | (265 | ) | |||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (971 | ) | (28,055 | ) | — | — | (2,485 | ) | |||||||||||||
Charge on benefit plan settlement | — | — | (13,384 | ) | — | — | |||||||||||||||
Loss on extinguishment of FHLB borrowings | — | — | — | — | (8,716 | ) | |||||||||||||||
Amortization of intangible assets | (1,399 | ) | (1,780 | ) | (3,431 | ) | (3,431 | ) | (3,053 | ) | |||||||||||
Core non-interest expense | 41,096 | 41,199 | 54,500 | 53,988 | 54,412 | ||||||||||||||||
Core operating efficiency ratio | 56.4 | % | 52.6 | % | 49.0 | % | 47.6 | % | 48.9 | % | |||||||||||
The following table shows the reconciliation of core net income and core earnings per share5: | |||||||||||||||||||||
Income (loss) before income tax expense | $ | 24,856 | $ | (11,328 | ) | $ | 35,841 | $ | 48,583 | $ | 36,009 | ||||||||||
Income tax expense (benefit) | 8,078 | (3,682 | ) | 11,648 | 15,792 | 12,243 | |||||||||||||||
Net income (loss) | 16,778 | (7,646 | ) | 24,193 | 32,791 | 23,766 | |||||||||||||||
Net (gain) loss on sale of securities | (1,534 | ) | (697 | ) | (2,726 | ) | 121 | 283 | |||||||||||||
Merger-related expense | 2,455 | 14,625 | — | — | 265 | ||||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 971 | 28,055 | — | — | 2,485 | ||||||||||||||||
Charge on benefit plan settlement | — | — | 13,384 | — | — | ||||||||||||||||
Loss on extinguishment of FHLB borrowings | — | — | — | — | 8,716 | ||||||||||||||||
Amortization of non-compete agreements and acquired customer list intangible assets | 660 | 991 | 961 | 961 | 968 | ||||||||||||||||
Total charges | 2,552 | 42,974 | 11,619 | 1,082 | 12,717 | ||||||||||||||||
Income tax (benefit) | (829 | ) | (13,967 | ) | (3,777 | ) | (348 | ) | (4,324 | ) | |||||||||||
Total non-core charges net of taxes | 1,723 | 29,007 | 7,842 | 734 | 8,393 | ||||||||||||||||
Core net income | $ | 18,501 | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | |||||||||||
Weighted average diluted shares | 88,252,768 | 91,950,776 | 130,192,937 | 130,354,779 | 130,500,975 | ||||||||||||||||
Diluted EPS as reported | $ | 0.19 | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | $ | 0.18 | ||||||||||
Core diluted EPS (excluding total charges) | 0.21 | 0.23 | 0.25 | 0.26 | 0.25 |
As of and for the Quarter Ended | |||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | |||||||||||||||
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend below. | |||||||||||||||||||
The following table shows a reconciliation of the allowance for loan losses and remaining purchase accounting adjustments to portfolio loans6: | |||||||||||||||||||
Allowance for loan losses | $ | 42,884 | $ | 44,317 | $ | 47,611 | $ | 50,145 | $ | 53,014 | |||||||||
Remaining purchase accounting adjustments: | |||||||||||||||||||
Acquired performing loans | 4,388 | 36,889 | 31,364 | 24,766 | 27,340 | ||||||||||||||
Purchased credit impaired loans | 724 | 18,014 | 17,783 | 16,617 | 16,862 | ||||||||||||||
Total remaining purchase accounting adjustments | 5,112 | 54,903 | 49,147 | 41,383 | 44,202 | ||||||||||||||
Total valuation balances recorded against portfolio loans | $ | 47,996 | $ | 99,220 | $ | 96,758 | $ | 91,528 | $ | 97,216 | |||||||||
Total portfolio loans, gross | $ | 4,938,906 | $ | 7,235,587 | $ | 7,525,632 | $ | 7,859,360 | $ | 8,286,163 | |||||||||
Remaining purchase accounting adjustments: | |||||||||||||||||||
Acquired performing loans | 4,388 | 36,889 | 31,364 | 24,766 | 27,340 | ||||||||||||||
Purchased credit impaired loans | 724 | 18,014 | 17,783 | 16,617 | 16,862 | ||||||||||||||
Adjusted portfolio loans, gross | $ | 4,944,018 | $ | 7,290,490 | $ | 7,574,779 | $ | 7,900,743 | $ | 8,330,365 | |||||||||
Allowance for loan losses to total portfolio loans, gross | 0.87 | % | 0.61 | % | 0.63 | % | 0.64 | % | 0.64 | % | |||||||||
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans | 0.97 | % | 1.36 | % | 1.28 | % | 1.16 | % | 1.17 | % |