Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated July 26, 2016. |
DATE: July 26, 2016 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 | Press Release of Sterling Bancorp, dated July 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 | |
July 26, 2016 | |
STERLING BANCORP CONTACT: | |
Luis Massiani, SEVP & Chief Financial Officer | |
845.369.8040 |
($ in thousands except per share amounts) | GAAP / As Reported | Non-GAAP / As Adjusted1 | ||||||||||||||||||||
2015 | 2016 | Change % / bps | 2015 | 2016 | Change % / bps | |||||||||||||||||
Total revenue2 | $ | 77,431 | $ | 120,822 | 56.0 | % | $ | 78,296 | $ | 119,510 | 52.6 | % | ||||||||||
Net (loss) income | (7,646 | ) | 37,770 | NM | 21,361 | 35,414 | 65.8 | |||||||||||||||
Diluted EPS | (0.08 | ) | 0.29 | NM | 0.23 | 0.27 | 17.4 | |||||||||||||||
Net interest margin3 | 3.49 | % | 3.50 | % | 1 | 3.57 | % | 3.60 | % | 3 | ||||||||||||
Return on average tangible equity | (4.75 | ) | 16.14 | NM | 13.27 | 15.14 | 187 | |||||||||||||||
Return on average tangible assets | (0.40 | ) | 1.27 | NM | 1.13 | 1.19 | 6 | |||||||||||||||
Efficiency ratio | 110.6 | 49.4 | NM | 52.6 | 47.2 | (540 | ) |
▪ | Annualized loan growth of 15.0% (end of period balances, including acquired loans) and 29.5% (average balances) over the linked quarter. |
▪ | Loans to deposits ratio of 87.8%; total deposits reached a record $9.8 billion at June 30, 2016 with over 90.0% core deposits4 and a total cost of deposits of 0.35%. |
▪ | Annualized core deposit4 growth of 22.2% (end of period balances) and 27.1% (average balances) over the linked quarter. |
▪ | Announced the pending acquisition of an ~$190 million portfolio of U.S. restaurant franchise financing loans. |
▪ | Completed the consolidation of seven financial centers in the second quarter of 2016, 11 in total for the six months ended June 30, 2016; total financial centers were 42 as of June 30, 2016. |
▪ | Announced divestiture of residential mortgage originations business; anticipated closing in Q3 2016. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2015 | 3/31/2016 | 6/30/2016 | Y-o-Y | Linked Qtr | |||||||||||||
Interest income | $ | 71,947 | $ | 106,006 | $ | 114,309 | 58.9 | % | 7.8 | % | |||||||
Interest expense | 8,373 | 12,496 | 13,929 | 66.4 | 11.5 | ||||||||||||
Net interest income | $ | 63,574 | $ | 93,510 | $ | 100,380 | 57.9 | 7.3 | |||||||||
Accretion on acquired loans | $ | 1,107 | $ | 5,605 | $ | 4,088 | 269.3 | % | (27.1 | )% | |||||||
Yield on loans | 4.60 | % | 4.62 | % | 4.68 | % | 0.08 | 0.06 | |||||||||
Tax equivalent yield on securities | 2.71 | 2.65 | 2.76 | 0.05 | 0.11 | ||||||||||||
Tax equivalent yield on interest earning assets | 4.03 | 4.00 | 4.09 | 0.06 | 0.09 | ||||||||||||
Cost of total deposits | 0.24 | 0.29 | 0.35 | 0.11 | 0.06 | ||||||||||||
Cost of interest bearing deposits | 0.33 | 0.44 | 0.52 | 0.19 | 0.08 | ||||||||||||
Cost of borrowings | 1.63 | 1.92 | 1.73 | 0.10 | (0.19 | ) | |||||||||||
Tax equivalent net interest margin | 3.57 | 3.53 | 3.60 | 0.03 | 0.07 | ||||||||||||
Average loans | $ | 5,205,806 | $ | 7,745,467 | $ | 8,313,529 | 59.7 | % | 7.3 | % | |||||||
Average securities | 1,908,416 | 2,733,324 | 2,869,651 | 50.4 | 5.0 | ||||||||||||
Average total earning assets | 7,309,667 | 10,880,356 | 11,558,424 | 58.1 | 6.2 | ||||||||||||
Average deposits | 5,634,470 | 8,916,617 | 9,561,997 | 69.7 | 7.2 |
▪ | The yield on loans was 4.68%, compared to 4.60% for the three months ended June 30, 2015. |
▪ | Yield on loans included $4.1 million of accretion of the fair value discount associated with prior acquisitions compared to $1.1 million in the second quarter of 2015. |
▪ | The tax equivalent yield on investment securities increased five basis points to 2.76%. |
▪ | The cost of total deposits was 35 basis points and the cost of borrowings was 1.73% compared to 24 basis points and 1.63%, respectively, for the same period a year ago. |
▪ | The tax equivalent yield on interest earning assets increased six basis points from the second quarter of 2015 to 4.09% for the second quarter of 2016. |
▪ | Tax equivalent net interest margin was 3.60% compared to 3.57% for the same period a year ago. |
▪ | The yield on loans was 4.68% for the quarter compared to 4.62% for the linked quarter. |
▪ | The tax equivalent yield on investment securities increased 11 basis point to 2.76% in the quarter. |
▪ | The cost of total deposits increased six basis points from 29 basis points in the linked quarter and the total cost of borrowings declined 19 basis points from 1.92% in the linked quarter to 1.73% for the second quarter of 2016. |
▪ | The tax equivalent yield on interest earning assets increased nine basis points compared to 4.00% in the linked quarter. |
▪ | Tax equivalent net interest margin was 3.60% compared to 3.53% in the linked quarter. |
($ in thousands) | For the three months ended | Change % | |||||||||||||||
6/30/2015 | 3/31/2016 | 6/30/2016 | Y-o-Y | Linked Qtr | |||||||||||||
Total non-interest income | $ | 13,857 | $ | 15,430 | $ | 20,442 | 47.5 | % | 32.5 | % | |||||||
Securities gains (losses) | 697 | (283 | ) | 4,474 | NM | NM | |||||||||||
Adjusted non-interest income | $ | 13,160 | $ | 15,713 | $ | 15,968 | 21.3 | 1.6 |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2015 | 3/31/2016 | 6/30/2016 | Y-o-Y | Linked Qtr | |||||||||||||
Compensation and benefits | $ | 22,667 | $ | 30,020 | $ | 31,336 | 38.2 | % | 4.4 | % | |||||||
Occupancy and office operations | 7,453 | 9,282 | 8,810 | 18.2 | (5.1 | ) | |||||||||||
Merger-related expenses | 14,625 | 265 | — | (100.0 | ) | (100.0 | ) | ||||||||||
Loss on extinguishment of FHLB borrowings | — | 8,716 | — | — | (100.0 | ) | |||||||||||
Charge for asset write-downs, banking systems conversions, retention and severance | 28,055 | 2,485 | — | (100.0 | ) | (100.0 | ) | ||||||||||
Other expenses | 12,859 | 18,163 | 19,494 | 51.6 | 7.3 | ||||||||||||
Total non-interest expense | $ | 85,659 | $ | 68,931 | $ | 59,640 | (30.4 | ) | (13.5 | ) | |||||||
Full time equivalent employees at period end | 1,196 | 1,078 | 1,065 | (11.0 | ) | (1.2 | ) | ||||||||||
Financial centers at period end | 59 | 48 | 42 | (28.8 | ) | (12.5 | ) | ||||||||||
Efficiency ratio, as reported | 110.6 | % | 63.3 | % | 49.4 | % | 61.2 | 13.9 | |||||||||
Efficiency ratio, as adjusted | 52.6 | 48.9 | 47.2 | 5.4 | 1.7 |
($ in thousands) | As of | Change % / bps | |||||||||||||||
6/30/2015 | 12/31/2015 | 6/30/2016 | Y-o-Y | Six months | |||||||||||||
Total assets | $ | 11,566,382 | $ | 11,955,952 | $ | 13,065,248 | 13.0 | % | 9.3 | % | |||||||
Total loans | 7,235,587 | 7,859,360 | 8,594,295 | 18.8 | 9.4 | ||||||||||||
Commercial & industrial (“C&I”) loans | 2,884,440 | 3,131,028 | 3,639,169 | 26.2 | 16.2 | ||||||||||||
Commercial real estate loans | 3,330,687 | 3,715,779 | 3,990,527 | 19.8 | 7.4 | ||||||||||||
Total commercial loans | 6,215,127 | 6,846,807 | 7,629,696 | 22.8 | 11.4 | ||||||||||||
Total deposits | 8,836,161 | 8,473,360 | 9,785,556 | 10.7 | 15.5 | ||||||||||||
Loans to deposits | 81.9 | % | 92.8 | % | 87.8 | % | 5.9 | (5.0 | ) | ||||||||
Core deposits | $ | 8,253,333 | $ | 7,822,637 | $ | 8,809,242 | 6.7 | 12.6 | |||||||||
Core deposits to total deposits | 93.4 | % | 92.3 | % | 90.0 | % | (3.40 | ) | (2.30 | ) | |||||||
Investment securities | $ | 2,666,610 | $ | 2,643,823 | $ | 2,980,059 | 11.8 | 12.7 | |||||||||
Investment securities to total assets | 23.1 | % | 22.1 | % | 22.8 | % | (0.3 | ) | 0.7 |
▪ | C&I loans (which include traditional C&I, asset-based lending, payroll finance, warehouse lending, factoring and equipment finance) represented 42.4%, commercial real estate loans represented 44.0%, consumer and residential mortgage loans represented 11.2%, and acquisition, development and construction loans represented 2.4% of the total loan portfolio. |
▪ | Commercial loan growth, which includes all C&I loans, commercial real estate and acquisition, development and construction loans, was $357.4 million for the quarter ended June 30, 2016. |
▪ | Average commercial loans were $7.3 billion compared to $6.7 billion for the linked quarter. |
▪ | Average total deposits were $9.6 billion compared to $8.9 billion for the linked quarter. |
▪ | Borrowings were $1.3 billion compared to $1.5 billion at December 31, 2015. Average borrowings were $1.3 billion for both the linked quarter and second quarter 2016. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2015 | 3/31/2016 | 6/30/2016 | Y-o-Y | Linked Qtr | |||||||||||||
Provision for loan losses | $ | 3,100 | $ | 4,000 | $ | 5,000 | 61.3 | % | 25.0 | % | |||||||
Net charge-offs | 1,667 | 1,131 | 2,149 | 28.9 | 90.0 | ||||||||||||
Allowance for loan losses | 44,317 | 53,014 | 55,865 | 26.1 | 5.4 | ||||||||||||
Non-performing loans | 69,030 | 85,438 | 79,564 | 15.3 | (6.9 | ) | |||||||||||
Net charge-offs annualized | 0.13 | % | 0.06 | % | 0.10 | % | 3.0 | (4.0 | ) | ||||||||
Allowance for loan losses to total loans | 0.61 | 0.64 | 0.65 | 4.0 | 1.0 | ||||||||||||
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans1 | 1.36 | 1.17 | 1.11 | (25.0 | ) | (6.0 | ) | ||||||||||
Allowance for loan losses to non-performing loans | 64.2 | 62.0 | 70.2 | 6.0 | 8.2 |
($ in thousands, except share and per share data) | As of | Change % / bps | |||||||||||||||
6/30/2015 | 12/31/2015 | 6/30/2016 | Y-o-Y | Six months | |||||||||||||
Total stockholders’ equity | $ | 1,623,110 | $ | 1,665,073 | $ | 1,735,994 | 7.0 | % | 4.3 | % | |||||||
Goodwill and intangible assets | 753,899 | 748,066 | 769,125 | 2.0 | 2.8 | ||||||||||||
Tangible stockholders’ equity | $ | 869,211 | $ | 917,007 | $ | 966,869 | 11.2 | 5.4 | |||||||||
Common shares outstanding | 129,709,834 | 130,006,926 | 130,620,463 | 0.7 | 0.5 | ||||||||||||
Book value per share | $ | 12.51 | $ | 12.81 | $ | 13.29 | 6.2 | 3.7 | |||||||||
Tangible book value per share | 6.70 | 7.05 | 7.40 | 10.4 | 5.0 | ||||||||||||
Tangible equity to tangible assets | 8.04 | % | 8.18 | % | 7.89 | % | (0.15 | ) | (0.29 | ) | |||||||
Estimated Tier 1 leverage ratio - Company | 12.92 | 9.03 | 8.37 | (4.55 | ) | (0.66 | ) | ||||||||||
Estimated Tier 1 leverage ratio - Bank | 13.82 | 9.65 | 8.84 | (4.98 | ) | (0.81 | ) |
6/30/2015 | 12/31/2015 | 6/30/2016 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 362,856 | $ | 229,513 | $ | 258,326 | |||||
Federal Funds Sold | 3,571 | — | — | ||||||||
Investment securities | 2,666,610 | 2,643,823 | 2,980,059 | ||||||||
Loans held for sale | 73,523 | 34,110 | 57,249 | ||||||||
Portfolio loans: | |||||||||||
Residential mortgage | 725,803 | 713,036 | 673,208 | ||||||||
Commercial real estate | 3,160,553 | 3,529,381 | 3,782,659 | ||||||||
Commercial and industrial | 2,884,440 | 3,131,028 | 3,639,169 | ||||||||
Acquisition, development and construction | 170,134 | 186,398 | 207,868 | ||||||||
Consumer | 294,657 | 299,517 | 291,391 | ||||||||
Total portfolio loans, gross | 7,235,587 | 7,859,360 | 8,594,295 | ||||||||
Allowance for loan losses | (44,317 | ) | (50,145 | ) | (55,865 | ) | |||||
Total portfolio loans, net | 7,191,270 | 7,809,215 | 8,538,430 | ||||||||
FHLB and Federal Reserve Bank Stock, at cost | 74,233 | 116,758 | 102,855 | ||||||||
Accrued interest receivable | 29,015 | 31,531 | 35,106 | ||||||||
Premises and equipment, net | 63,555 | 63,362 | 60,797 | ||||||||
Goodwill | 669,590 | 670,699 | 696,600 | ||||||||
Other intangibles | 84,309 | 77,367 | 72,525 | ||||||||
Bank owned life insurance | 196,629 | 196,288 | 196,665 | ||||||||
Other real estate owned | 9,575 | 14,614 | 16,590 | ||||||||
Other assets | 141,646 | 68,672 | 50,046 | ||||||||
Total assets | $ | 11,566,382 | $ | 11,955,952 | $ | 13,065,248 | |||||
Liabilities: | |||||||||||
Deposits | $ | 8,836,161 | $ | 8,580,007 | $ | 9,785,556 | |||||
FHLB borrowings | 777,047 | 1,409,885 | 1,074,492 | ||||||||
Other borrowings | 39,181 | 16,566 | 28,202 | ||||||||
Senior notes | 98,693 | 98,893 | 99,099 | ||||||||
Subordinated notes | — | — | 108,161 | ||||||||
Mortgage escrow funds | 12,142 | 13,778 | 14,283 | ||||||||
Other liabilities | 180,048 | 171,750 | 219,461 | ||||||||
Total liabilities | 9,943,272 | 10,290,879 | 11,329,254 | ||||||||
Stockholders’ equity: | |||||||||||
Common stock | 1,367 | 1,367 | 1,367 | ||||||||
Additional paid-in capital | 1,507,837 | 1,506,612 | 1,503,027 | ||||||||
Treasury stock | (78,972 | ) | (76,190 | ) | (69,355 | ) | |||||
Retained earnings | 206,079 | 245,408 | 290,025 | ||||||||
Accumulated other comprehensive (loss) income | (13,201 | ) | (12,124 | ) | 10,930 | ||||||
Total stockholders’ equity | 1,623,110 | 1,665,073 | 1,735,994 | ||||||||
Total liabilities and stockholders’ equity | $ | 11,566,382 | $ | 11,955,952 | $ | 13,065,248 | |||||
Shares of common stock outstanding at period end | 129,709,834 | 130,006,926 | 130,620,463 | ||||||||
Book value per share | $ | 12.51 | $ | 12.81 | $ | 13.29 | |||||
Tangible book value per share | 6.70 | 7.05 | 7.40 |
For the Quarter Ended | For the Six Months Ended | |||||||||||||||||||
6/30/2015 | 3/31/2016 | 6/30/2016 | 6/30/2015 | 6/30/2016 | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Loans and loan fees | $ | 59,744 | $ | 89,034 | $ | 96,658 | $ | 115,015 | $ | 185,692 | ||||||||||
Securities taxable | 8,423 | 12,016 | 10,662 | 16,054 | 22,678 | |||||||||||||||
Securities non-taxable | 2,900 | 3,879 | 5,871 | 5,768 | 9,750 | |||||||||||||||
Other earning assets | 880 | 1,077 | 1,118 | 1,782 | 2,195 | |||||||||||||||
Total interest and dividend income | 71,947 | 106,006 | 114,309 | 138,619 | 220,315 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,359 | 6,409 | 8,328 | 6,452 | 14,737 | |||||||||||||||
Borrowings | 5,014 | 6,087 | 5,601 | 9,728 | 11,688 | |||||||||||||||
Total interest expense | 8,373 | 12,496 | 13,929 | 16,180 | 26,425 | |||||||||||||||
Net interest income | 63,574 | 93,510 | 100,380 | 122,439 | 193,890 | |||||||||||||||
Provision for loan losses | 3,100 | 4,000 | 5,000 | 5,200 | 9,000 | |||||||||||||||
Net interest income after provision for loan losses | 60,474 | 89,510 | 95,380 | 117,239 | 184,890 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Accounts receivable / factoring commissions and other fees | 4,435 | 4,494 | 4,156 | 7,937 | 8,650 | |||||||||||||||
Mortgage banking income | 2,530 | 2,002 | 2,367 | 5,687 | 4,369 | |||||||||||||||
Deposit fees and service charges | 3,639 | 4,496 | 4,084 | 7,181 | 8,574 | |||||||||||||||
Net gain (loss) on sale of securities | 697 | (283 | ) | 4,474 | 2,231 | 4,191 | ||||||||||||||
Bank owned life insurance | 1,074 | 1,327 | 1,281 | 2,150 | 2,608 | |||||||||||||||
Investment management fees | 316 | 1,124 | 934 | 676 | 2,058 | |||||||||||||||
Other | 1,166 | 2,270 | 3,146 | 2,008 | 5,422 | |||||||||||||||
Total non-interest income | 13,857 | 15,430 | 20,442 | 27,870 | 35,872 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and benefits | 22,667 | 30,020 | 31,336 | 45,833 | 61,356 | |||||||||||||||
Stock-based compensation plans | 1,128 | 1,540 | 1,747 | 2,236 | 3,287 | |||||||||||||||
Occupancy and office operations | 7,453 | 9,282 | 8,810 | 14,033 | 18,092 | |||||||||||||||
Amortization of intangible assets | 1,780 | 3,053 | 3,241 | 3,180 | 6,294 | |||||||||||||||
FDIC insurance and regulatory assessments | 1,384 | 2,258 | 2,300 | 2,812 | 4,558 | |||||||||||||||
Other real estate owned, net | 40 | 582 | 541 | 4 | 1,123 | |||||||||||||||
Merger-related expenses | 14,625 | 265 | — | 17,080 | 266 | |||||||||||||||
Loss on extinguishment of FHLB borrowings | — | 8,716 | — | — | 8,716 | |||||||||||||||
Other | 36,582 | 13,215 | 11,665 | 46,405 | 24,879 | |||||||||||||||
Total non-interest expense | 85,659 | 68,931 | 59,640 | 131,583 | 128,571 | |||||||||||||||
(Loss) income before income tax expense | (11,328 | ) | 36,009 | 56,182 | 13,526 | 92,191 | ||||||||||||||
Income tax (benefit) expense | (3,682 | ) | 12,243 | 18,412 | 4,396 | 30,655 | ||||||||||||||
Net (loss) income | $ | (7,646 | ) | $ | 23,766 | $ | 37,770 | $ | 9,130 | $ | 61,536 | |||||||||
Weighted average common shares: | ||||||||||||||||||||
Basic | 91,565,972 | 129,974,025 | 130,081,465 | 89,712,796 | 129,953,397 | |||||||||||||||
Diluted | 91,950,776 | 130,500,975 | 130,688,729 | 90,099,788 | 130,522,021 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||
Basic (loss) earnings per share | $ | (0.08 | ) | $ | 0.18 | $ | 0.29 | $ | 0.10 | $ | 0.47 | |||||||||
Diluted (loss) earnings per share | (0.08 | ) | 0.18 | 0.29 | 0.10 | 0.47 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.14 | 0.14 | |||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | ||||||||||||||
Total assets | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | $ | 12,865,356 | $ | 13,065,248 | |||||||||
Tangible assets 1 | 10,812,483 | 10,845,864 | 11,207,886 | 12,092,966 | 12,296,123 | ||||||||||||||
Securities available for sale | 2,081,414 | 1,854,862 | 1,921,032 | 1,894,820 | 1,613,013 | ||||||||||||||
Securities held to maturity | 585,196 | 673,130 | 722,791 | 952,922 | 1,367,046 | ||||||||||||||
Portfolio loans | 7,235,587 | 7,525,632 | 7,859,360 | 8,286,163 | 8,594,295 | ||||||||||||||
Goodwill | 669,590 | 670,699 | 670,699 | 696,600 | 696,600 | ||||||||||||||
Other intangibles | 84,309 | 80,830 | 77,367 | 75,790 | 72,525 | ||||||||||||||
Deposits | 8,836,161 | 8,805,411 | 8,580,007 | 9,328,622 | 9,785,547 | ||||||||||||||
Municipal deposits (included above) | 1,212,624 | 1,352,846 | 1,140,206 | 1,285,263 | 1,184,231 | ||||||||||||||
Borrowings | 914,921 | 948,048 | 1,525,344 | 1,675,508 | 1,309,954 | ||||||||||||||
Stockholders’ equity | 1,623,110 | 1,652,204 | 1,665,073 | 1,698,133 | 1,735,994 | ||||||||||||||
Tangible equity 1 | 869,211 | 900,675 | 917,007 | 925,743 | 966,869 | ||||||||||||||
Quarterly Average Balances | |||||||||||||||||||
Total assets | 8,049,220 | 11,242,870 | 11,622,621 | 12,001,370 | 12,700,038 | ||||||||||||||
Tangible assets 1 | 7,593,900 | 10,490,169 | 10,872,287 | 11,253,958 | 11,929,107 | ||||||||||||||
Loans, gross: | |||||||||||||||||||
Residential mortgage | 539,569 | 780,373 | 777,561 | 755,564 | 729,685 | ||||||||||||||
Commercial real estate | 2,040,094 | 3,253,183 | 3,444,774 | 3,587,341 | 3,694,162 | ||||||||||||||
Commercial and industrial: | |||||||||||||||||||
Commercial and industrial | 966,411 | 1,295,034 | 1,378,642 | 1,381,107 | 1,456,402 | ||||||||||||||
Asset based lending | 297,846 | 303,387 | 304,113 | 304,779 | 636,383 | ||||||||||||||
Payroll finance | 170,905 | 175,240 | 199,856 | 192,428 | 187,887 | ||||||||||||||
Warehouse lending | 263,802 | 286,557 | 293,387 | 248,831 | 301,882 | ||||||||||||||
Factored receivables | 150,569 | 192,380 | 210,081 | 181,974 | 183,051 | ||||||||||||||
Equipment financing | 477,369 | 578,655 | 587,445 | 616,995 | 630,922 | ||||||||||||||
Total commercial and industrial | 2,326,902 | 2,831,253 | 2,973,524 | 2,926,114 | 3,396,527 | ||||||||||||||
Acquisition, development and construction | 97,197 | 173,898 | 181,550 | 179,420 | 197,489 | ||||||||||||||
Consumer | 202,044 | 292,852 | 281,242 | 297,028 | 295,666 | ||||||||||||||
Loans, total 2 | 5,205,806 | 7,331,559 | 7,658,651 | 7,745,467 | 8,313,529 | ||||||||||||||
Interest bearing cash and cash equivalents | 114,128 | 211,723 | 168,199 | 296,668 | 272,426 | ||||||||||||||
Securities (taxable) | 1,527,872 | 1,967,600 | 2,111,953 | 2,139,547 | 2,032,518 | ||||||||||||||
Securities (non-taxable) | 380,544 | 446,875 | 429,633 | 593,777 | 837,133 | ||||||||||||||
Total earning assets | 7,309,667 | 10,038,831 | 10,460,168 | 10,880,356 | 11,558,424 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 1,548,844 | 3,234,450 | 3,017,727 | 3,009,085 | 3,059,562 | ||||||||||||||
Interest bearing demand | 823,471 | 1,418,803 | 1,485,690 | 1,607,227 | 2,016,365 | ||||||||||||||
Savings (including mortgage escrow funds) | 802,956 | 950,709 | 962,766 | 814,485 | 809,123 | ||||||||||||||
Money market | 1,922,805 | 2,548,181 | 2,808,734 | 2,866,666 | 3,056,188 | ||||||||||||||
Certificates of deposit | 536,394 | 539,765 | 550,640 | 619,154 | 620,759 | ||||||||||||||
Total deposits and mortgage escrow | 5,634,470 | 8,691,908 | 8,825,557 | 8,916,617 | 9,561,997 | ||||||||||||||
Borrowings | 1,234,958 | 772,777 | 988,550 | 1,274,605 | 1,304,442 | ||||||||||||||
Stockholders’ equity | 1,100,897 | 1,639,458 | 1,661,282 | 1,686,274 | 1,711,902 | ||||||||||||||
Tangible equity 1 | 645,577 | 886,757 | 910,948 | 938,862 | 940,971 | ||||||||||||||
1 See a reconciliation of this Non-GAAP Financial Measure on page 15. | |||||||||||||||||||
2 Includes loans held for sale, excludes allowance for loan losses. |
As of and for the Quarter Ended | |||||||||||||||||||
Per Share Data | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | ||||||||||||||
Basic (loss) earnings per share | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | $ | 0.18 | $ | 0.29 | ||||||||
Diluted (loss) earnings per share | (0.08 | ) | 0.19 | 0.25 | 0.18 | 0.29 | |||||||||||||
Adjusted diluted earnings per share, non-GAAP 1 | 0.23 | 0.25 | 0.26 | 0.25 | 0.27 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Tangible book value per share | 6.70 | 6.94 | 7.05 | 7.09 | 7.40 | ||||||||||||||
Shares of common stock o/s | 129,709,834 | 129,769,569 | 130,006,926 | 130,548,989 | 130,620,463 | ||||||||||||||
Basic weighted average common shares o/s | 91,565,972 | 129,733,911 | 129,812,551 | 129,974,025 | 130,081,465 | ||||||||||||||
Diluted weighted average common shares o/s | 91,950,776 | 130,192,937 | 130,354,779 | 130,500,975 | 130,688,729 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | (0.38 | )% | 0.85 | % | 1.12 | % | 0.80 | % | 1.20 | % | |||||||||
Return on average equity | (2.79 | )% | 5.85 | % | 7.83 | % | 5.67 | % | 8.87 | % | |||||||||
Return on average tangible assets, as reported 1 | (0.40 | )% | 0.91 | % | 1.20 | % | 0.85 | % | 1.27 | % | |||||||||
Return on average tangible equity, as reported 1 | (4.75 | )% | 10.82 | % | 14.28 | % | 10.18 | % | 16.14 | % | |||||||||
Return on average tangible assets, as adjusted 1 | 1.13 | % | 1.21 | % | 1.22 | % | 1.15 | % | 1.19 | % | |||||||||
Return on average tangible equity, as adjusted 1 | 13.27 | % | 14.33 | % | 14.60 | % | 13.78 | % | 15.14 | % | |||||||||
Operating efficiency, as adjusted 1 | 52.6 | % | 49.0 | % | 47.6 | % | 48.9 | % | 47.2 | % | |||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Yield on loans | 4.60 | % | 4.75 | % | 4.65 | % | 4.62 | % | 4.68 | % | |||||||||
Yield on investment securities - tax equivalent 2 | 2.71 | % | 2.63 | % | 2.66 | % | 2.65 | % | 2.76 | % | |||||||||
Yield on interest earning assets - tax equivalent 2 | 4.03 | % | 4.15 | % | 4.09 | % | 4.00 | % | 4.09 | % | |||||||||
Cost of total deposits | 0.24 | % | 0.24 | % | 0.26 | % | 0.29 | % | 0.35 | % | |||||||||
Cost of borrowings | 1.63 | % | 2.38 | % | 2.04 | % | 1.92 | % | 1.73 | % | |||||||||
Cost of interest bearing liabilities | 0.63 | % | 0.63 | % | 0.63 | % | 0.70 | % | 0.72 | % | |||||||||
Net interest rate spread - tax equivalent basis 2 | 3.40 | % | 3.52 | % | 3.46 | % | 3.30 | % | 3.37 | % | |||||||||
Net interest margin - GAAP basis | 3.49 | % | 3.69 | % | 3.62 | % | 3.46 | % | 3.50 | % | |||||||||
Net interest margin - tax equivalent basis 2 | 3.57 | % | 3.76 | % | 3.68 | % | 3.53 | % | 3.60 | % | |||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company 3 | 12.92 | % | 9.12 | % | 9.03 | % | 8.61 | % | 8.37 | % | |||||||||
Tier 1 leverage ratio - Bank only 3 | 13.82 | % | 9.80 | % | 9.65 | % | 9.16 | % | 8.84 | % | |||||||||
Tier 1 risk-based capital ratio - Bank only 3 | 11.98 | % | 11.79 | % | 11.45 | % | 10.89 | % | 10.52 | % | |||||||||
Total risk-based capital ratio - Bank only 3 | 12.51 | % | 12.34 | % | 12.00 | % | 12.60 | % | 12.15 | % | |||||||||
Tangible equity to tangible assets - Company 1 | 8.04 | % | 8.30 | % | 8.18 | % | 7.66 | % | 7.86 | % | |||||||||
Condensed Five Quarter Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 71,947 | $ | 103,298 | $ | 106,224 | $ | 106,006 | $ | 114,309 | |||||||||
Interest expense | 8,373 | 9,944 | 10,803 | 12,496 | 13,929 | ||||||||||||||
Net interest income | 63,574 | 93,354 | 95,421 | 93,510 | 100,380 | ||||||||||||||
Provision for loan losses | 3,100 | 5,000 | 5,500 | 4,000 | 5,000 | ||||||||||||||
Net interest income after provision for loan losses | 60,474 | 88,354 | 89,921 | 89,510 | 95,380 | ||||||||||||||
Non-interest income | 13,857 | 18,802 | 16,081 | 15,430 | 20,442 | ||||||||||||||
Non-interest expense | 85,659 | 71,315 | 57,419 | 68,931 | 59,640 | ||||||||||||||
(Loss) income before income tax expense | (11,328 | ) | 35,841 | 48,583 | 36,009 | 56,182 | |||||||||||||
Income tax (benefit) expense | (3,682 | ) | 11,648 | 15,792 | 12,243 | 18,412 | |||||||||||||
Net (loss) income | $ | (7,646 | ) | $ | 24,193 | $ | 32,791 | $ | 23,766 | $ | 37,770 | ||||||||
1 See a reconciliation of Non-GAAP Financial Measures beginning on page 15. | |||||||||||||||||||
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 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | ||||||||||||||
Balance, beginning of period | $ | 42,884 | $ | 44,317 | $ | 47,611 | $ | 50,145 | $ | 53,014 | |||||||||
Provision for loan losses | 3,100 | 5,000 | 5,500 | 4,000 | 5,000 | ||||||||||||||
Loan charge-offs: | |||||||||||||||||||
Commercial & industrial | (228 | ) | (224 | ) | (281 | ) | (489 | ) | (429 | ) | |||||||||
Payroll finance | (59 | ) | (44 | ) | — | — | (28 | ) | |||||||||||
Warehouse lending | — | — | — | — | — | ||||||||||||||
Factored receivables | (146 | ) | (52 | ) | (21 | ) | (81 | ) | (792 | ) | |||||||||
Equipment financing | (438 | ) | (1,369 | ) | (1,463 | ) | (457 | ) | (572 | ) | |||||||||
Commercial real estate | (276 | ) | (223 | ) | (1,134 | ) | (4 | ) | (100 | ) | |||||||||
Multi-family | — | — | — | — | (18 | ) | |||||||||||||
Acquisition development & construction | — | — | — | — | — | ||||||||||||||
Residential mortgage | — | (546 | ) | (524 | ) | (224 | ) | (209 | ) | ||||||||||
Consumer | (821 | ) | (387 | ) | (810 | ) | (511 | ) | (532 | ) | |||||||||
Total charge offs | (1,968 | ) | (2,845 | ) | (4,233 | ) | (1,766 | ) | (2,680 | ) | |||||||||
Recoveries of loans previously charged-off: | |||||||||||||||||||
Commercial & industrial | 163 | 781 | 675 | 329 | 199 | ||||||||||||||
Payroll finance | — | — | 24 | 4 | 28 | ||||||||||||||
Warehouse lending | — | — | — | — | — | ||||||||||||||
Factored receivables | 9 | 18 | 14 | 24 | 17 | ||||||||||||||
Equipment financing | 96 | 148 | 409 | 108 | 102 | ||||||||||||||
Commercial real estate | — | 76 | 56 | 21 | 53 | ||||||||||||||
Multi-family | — | — | 9 | 2 | — | ||||||||||||||
Acquisition development & construction | — | — | 43 | — | 104 | ||||||||||||||
Residential mortgage | 9 | 81 | — | 28 | 1 | ||||||||||||||
Consumer | 24 | 35 | 37 | 119 | 27 | ||||||||||||||
Total recoveries | 301 | 1,139 | 1,267 | 635 | 531 | ||||||||||||||
Net loan charge-offs | (1,667 | ) | (1,706 | ) | (2,966 | ) | (1,131 | ) | (2,149 | ) | |||||||||
Balance, end of period | $ | 44,317 | $ | 47,611 | $ | 50,145 | $ | 53,014 | $ | 55,865 | |||||||||
Asset Quality Data and Ratios | |||||||||||||||||||
Non-performing loans (“NPLs”) non-accrual | $ | 68,419 | $ | 67,390 | $ | 65,737 | $ | 84,436 | $ | 79,036 | |||||||||
NPLs still accruing | 611 | 282 | 674 | 1,002 | 528 | ||||||||||||||
Total NPLs | 69,030 | 67,672 | 66,411 | 85,438 | 79,564 | ||||||||||||||
Other real estate owned | 9,575 | 11,831 | 14,614 | 14,527 | 16,590 | ||||||||||||||
Non-performing assets (“NPAs”) | $ | 78,605 | $ | 79,503 | $ | 81,025 | $ | 99,965 | $ | 96,154 | |||||||||
Loans 30 to 89 days past due | $ | 40,957 | $ | 30,881 | $ | 67,996 | $ | 19,168 | $ | 18,803 | |||||||||
Net charge-offs as a % of average loans (annualized) | 0.13 | % | 0.09 | % | 0.15 | % | 0.06 | % | 0.10 | % | |||||||||
NPLs as a % of total loans | 0.95 | 0.90 | 0.84 | 1.03 | 0.93 | ||||||||||||||
NPAs as a % of total assets | 0.68 | 0.69 | 0.68 | 0.78 | 0.74 | ||||||||||||||
Allowance for loan losses as a % of NPLs | 64.2 | 70.4 | 75.5 | 62.0 | 70.2 | ||||||||||||||
Allowance for loan losses as a % of total loans | 0.61 | 0.63 | 0.64 | 0.64 | 0.65 | ||||||||||||||
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans 1 | 1.36 | 1.28 | 1.16 | 1.17 | 1.11 | ||||||||||||||
Special mention loans | $ | 65,421 | $ | 91,076 | $ | 68,003 | $ | 101,560 | $ | 103,710 | |||||||||
Substandard loans | 125,602 | 120,684 | 129,665 | 131,919 | 125,571 | ||||||||||||||
Doubtful loans | 392 | 152 | 713 | 556 | 330 | ||||||||||||||
1 See a reconciliation of this non-GAAP measure on page 17. |
For the Quarter Ended | |||||||||||||||||||||
March 31, 2016 | June 30, 2016 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Commercial loans | $ | 6,692,875 | $ | 78,137 | 4.70 | % | $ | 7,288,178 | $ | 86,206 | 4.76 | % | |||||||||
Consumer loans | 297,028 | 3,296 | 4.46 | % | 295,666 | 3,391 | 4.61 | % | |||||||||||||
Residential mortgage loans | 755,564 | 7,601 | 4.02 | % | 729,685 | 7,061 | 3.87 | % | |||||||||||||
Total net loans 1 | 7,745,467 | 89,034 | 4.62 | % | 8,313,529 | 96,658 | 4.68 | % | |||||||||||||
Securities taxable | 2,139,547 | 12,016 | 2.26 | % | 2,032,518 | 10,662 | 2.11 | % | |||||||||||||
Securities non-taxable | 593,777 | 5,968 | 4.04 | % | 837,133 | 9,032 | 4.34 | % | |||||||||||||
Interest earning deposits | 296,668 | 311 | 0.42 | % | 272,426 | 258 | 0.38 | % | |||||||||||||
FHLB and Federal Reserve Bank stock | 104,897 | 766 | 2.94 | % | 102,818 | 860 | 3.36 | % | |||||||||||||
Total securities and other earning assets | 3,134,889 | 19,061 | 2.45 | % | 3,244,895 | 20,812 | 2.58 | % | |||||||||||||
Total interest earning assets | 10,880,356 | 108,095 | 4.00 | % | 11,558,424 | 117,470 | 4.09 | % | |||||||||||||
Non-interest earning assets | 1,121,014 | 1,141,614 | |||||||||||||||||||
Total assets | $ | 12,001,370 | $ | 12,700,038 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,607,227 | $ | 1,004 | 0.25 | % | $ | 2,016,365 | $ | 1,994 | 0.40 | % | |||||||||
Savings deposits 2 | 814,485 | 606 | 0.30 | % | 809,123 | 841 | 0.42 | % | |||||||||||||
Money market deposits | 2,866,666 | 3,672 | 0.52 | % | 3,056,188 | 4,152 | 0.55 | % | |||||||||||||
Certificates of deposit | 619,154 | 1,127 | 0.73 | % | 620,759 | 1,341 | 0.87 | % | |||||||||||||
Total interest bearing deposits | 5,907,532 | 6,409 | 0.44 | % | 6,502,435 | 8,328 | 0.52 | % | |||||||||||||
Senior notes | 98,928 | 1,478 | 5.98 | % | 99,032 | 1,478 | 5.97 | % | |||||||||||||
Other borrowings | 1,172,112 | 4,560 | 1.56 | % | 1,097,270 | 2,642 | 0.97 | % | |||||||||||||
Subordinated notes | 3,565 | 49 | 5.50 | % | 108,140 | 1,481 | 5.48 | % | |||||||||||||
Total borrowings | 1,274,605 | 6,087 | 1.92 | % | 1,304,442 | 5,601 | 1.73 | % | |||||||||||||
Total interest bearing liabilities | 7,182,137 | 12,496 | 0.70 | % | 7,806,877 | 13,929 | 0.72 | % | |||||||||||||
Non-interest bearing deposits | 3,009,085 | 3,059,562 | |||||||||||||||||||
Other non-interest bearing liabilities | 123,874 | 121,697 | |||||||||||||||||||
Total liabilities | 10,315,096 | 10,988,136 | |||||||||||||||||||
Stockholders’ equity | 1,686,274 | 1,711,902 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 12,001,370 | $ | 12,700,038 | |||||||||||||||||
Net interest rate spread 3 | 3.30 | % | 3.37 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 3,698,219 | $ | 3,751,547 | |||||||||||||||||
Net interest margin - tax equivalent | 95,599 | 3.53 | % | 103,541 | 3.60 | % | |||||||||||||||
Less tax equivalent adjustment | (2,089 | ) | (3,161 | ) | |||||||||||||||||
Net interest income | $ | 93,510 | $ | 100,380 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 151.5 | % | 148.1 | % |
For the Quarter Ended | |||||||||||||||||||||
June 30, 2015 | June 30, 2016 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Commercial loans | $ | 4,464,193 | $ | 51,805 | 4.65 | % | $ | 7,288,178 | $ | 86,206 | 4.76 | % | |||||||||
Consumer loans | 202,044 | 1,975 | 3.92 | % | 295,666 | 3,391 | 4.61 | % | |||||||||||||
Residential mortgage loans | 539,569 | 5,964 | 4.43 | % | 729,685 | 7,061 | 3.87 | % | |||||||||||||
Total net loans 1 | 5,205,806 | 59,744 | 4.60 | % | 8,313,529 | 96,658 | 4.68 | % | |||||||||||||
Securities taxable | 1,527,872 | 8,423 | 2.21 | % | 2,032,518 | 10,662 | 2.11 | % | |||||||||||||
Securities non-taxable | 380,544 | 4,462 | 4.70 | % | 837,133 | 9,032 | 4.34 | % | |||||||||||||
Interest earning deposits | 114,128 | 48 | 0.17 | % | 272,426 | 258 | 0.38 | % | |||||||||||||
FHLB and Federal Reserve Bank stock | 81,317 | 832 | 4.10 | % | 102,818 | 860 | 3.36 | % | |||||||||||||
Total securities and other earning assets | 2,103,861 | 13,765 | 2.62 | % | 3,244,895 | 20,812 | 2.58 | % | |||||||||||||
Total interest earning assets | 7,309,667 | 73,509 | 4.03 | % | 11,558,424 | 117,470 | 4.09 | % | |||||||||||||
Non-interest earning assets | 739,553 | 1,141,614 | |||||||||||||||||||
Total assets | $ | 8,049,220 | $ | 12,700,038 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 823,471 | $ | 207 | 0.10 | % | $ | 2,016,365 | $ | 1,994 | 0.40 | % | |||||||||
Savings deposits 2 | 802,956 | 482 | 0.24 | % | 809,123 | 841 | 0.42 | % | |||||||||||||
Money market deposits | 1,922,805 | 1,931 | 0.40 | % | 3,056,188 | 4,152 | 0.55 | % | |||||||||||||
Certificates of deposit | 536,394 | 739 | 0.55 | % | 620,759 | 1,341 | 0.87 | % | |||||||||||||
Total interest bearing deposits | 4,085,626 | 3,359 | 0.33 | % | 6,502,435 | 8,328 | 0.52 | % | |||||||||||||
Senior notes | 98,629 | 1,473 | 5.99 | % | 99,032 | 1,478 | 5.97 | % | |||||||||||||
Other borrowings | 1,136,329 | 3,541 | 1.25 | % | 1,097,270 | 2,642 | 0.97 | % | |||||||||||||
Subordinated notes | — | — | — | % | 108,140 | 1,481 | 5.48 | % | |||||||||||||
Total borrowings | 1,234,958 | 5,014 | 1.63 | % | 1,304,442 | 5,601 | 1.73 | % | |||||||||||||
Total interest bearing liabilities | 5,320,584 | 8,373 | 0.63 | % | 7,806,877 | 13,929 | 0.72 | % | |||||||||||||
Non-interest bearing deposits | 1,548,844 | 3,059,562 | |||||||||||||||||||
Other non-interest bearing liabilities | 78,895 | 121,697 | |||||||||||||||||||
Total liabilities | 6,948,323 | 10,988,136 | |||||||||||||||||||
Stockholders’ equity | 1,100,897 | 1,711,902 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,049,220 | $ | 12,700,038 | |||||||||||||||||
Net interest rate spread 3 | 3.40 | % | 3.37 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 1,989,083 | $ | 3,751,547 | |||||||||||||||||
Net interest margin - tax equivalent | 65,136 | 3.57 | % | 103,541 | 3.60 | % | |||||||||||||||
Less tax equivalent adjustment | (1,562 | ) | (3,161 | ) | |||||||||||||||||
Net interest income | $ | 63,574 | $ | 100,380 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 137.4 | % | 148.1 | % |
The Company provides supplemental reporting of Non-GAAP Financial Measures as management believes this information is useful to investors. See legend on page 17. | |||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | |||||||||||||||
The following table shows the reconciliation of stockholders’ equity to tangible equity and the tangible equity ratio1: | |||||||||||||||||||
Total assets | $ | 11,566,382 | $ | 11,597,393 | $ | 11,955,952 | $ | 12,865,356 | $ | 13,065,248 | |||||||||
Goodwill and other intangibles | (753,899 | ) | (751,529 | ) | (748,066 | ) | (772,390 | ) | (769,125 | ) | |||||||||
Tangible assets | 10,812,483 | 10,845,864 | 11,207,886 | 12,092,966 | 12,296,123 | ||||||||||||||
Stockholders’ equity | 1,623,110 | 1,652,204 | 1,665,073 | 1,698,133 | 1,735,994 | ||||||||||||||
Goodwill and other intangibles | (753,899 | ) | (751,529 | ) | (748,066 | ) | (772,390 | ) | (769,125 | ) | |||||||||
Tangible stockholders’ equity | 869,211 | 900,675 | 917,007 | 925,743 | 966,869 | ||||||||||||||
Common stock outstanding at period end | 129,709,834 | 129,769,569 | 130,006,926 | 130,548,989 | 130,620,463 | ||||||||||||||
Stockholders’ equity as a % of total assets | 14.03 | % | 14.25 | % | 13.93 | % | 13.20 | % | 13.29 | % | |||||||||
Book value per share | $ | 12.51 | $ | 12.73 | $ | 12.81 | $ | 13.01 | $ | 13.29 | |||||||||
Tangible equity as a % of tangible assets | 8.04 | % | 8.30 | % | 8.18 | % | 7.66 | % | 7.86 | % | |||||||||
Tangible book value per share | $ | 6.70 | $ | 6.94 | $ | 7.05 | $ | 7.09 | $ | 7.40 | |||||||||
The following table shows the reconciliation of reported return on average tangible equity and adjusted return on average tangible equity2: | |||||||||||||||||||
Average stockholders’ equity | $ | 1,100,897 | $ | 1,639,458 | $ | 1,661,282 | $ | 1,686,274 | $ | 1,711,902 | |||||||||
Average goodwill and other intangibles | (455,320 | ) | (752,701 | ) | (750,334 | ) | (747,412 | ) | (770,931 | ) | |||||||||
Average tangible stockholders’ equity | 645,577 | 886,757 | 910,948 | 938,862 | 940,971 | ||||||||||||||
Net (loss) income | (7,646 | ) | 24,193 | 32,791 | 23,766 | 37,770 | |||||||||||||
Net (loss) income, if annualized | (30,668 | ) | 95,983 | 130,095 | 95,586 | 151,910 | |||||||||||||
Reported return on average tangible equity | (4.75 | )% | 10.82 | % | 14.28 | % | 10.18 | % | 16.14 | % | |||||||||
Adjusted net income (see reconciliation on page 16) | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | $ | 35,414 | |||||||||
Annualized adjusted net income | 85,679 | 127,095 | 133,007 | 129,343 | 142,434 | ||||||||||||||
Adjusted return on average tangible equity | 13.27 | % | 14.33 | % | 14.60 | % | 13.78 | % | 15.14 | % | |||||||||
The following table shows the reconciliation of reported return on tangible assets and adjusted return on tangible assets3: | |||||||||||||||||||
Average assets | $ | 8,049,220 | $ | 11,242,870 | $ | 11,622,621 | $ | 12,001,370 | $ | 12,700,038 | |||||||||
Average goodwill and other intangibles | (455,320 | ) | (752,701 | ) | (750,334 | ) | (747,412 | ) | (770,931 | ) | |||||||||
Average tangible assets | 7,593,900 | 10,490,169 | 10,872,287 | 11,253,958 | 11,929,107 | ||||||||||||||
Net (loss) income | (7,646 | ) | 24,193 | 32,791 | 23,766 | 37,770 | |||||||||||||
Net (loss) income, if annualized | (30,668 | ) | 95,983 | 130,095 | 95,586 | 151,910 | |||||||||||||
Reported return on average tangible assets | (0.40 | )% | 0.91 | % | 1.20 | % | 0.85 | % | 1.27 | % | |||||||||
Adjusted net income (see reconciliation on page 16) | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | $ | 35,414 | |||||||||
Annualized adjusted net income | 85,679 | 127,095 | 133,007 | 129,343 | 142,434 | ||||||||||||||
Adjusted return on average tangible assets | 1.13 | % | 1.21 | % | 1.22 | % | 1.15 | % | 1.19 | % |
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend on page 17. | |||||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||||
6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | |||||||||||||||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio4: | |||||||||||||||||||||
Net interest income | $ | 63,574 | $ | 93,354 | $ | 95,421 | $ | 93,510 | $ | 100,379 | |||||||||||
Non-interest income | 13,857 | 18,802 | 16,081 | 15,430 | 20,445 | ||||||||||||||||
Total net revenue | 77,431 | 112,156 | 111,502 | 108,940 | 120,824 | ||||||||||||||||
Tax equivalent adjustment on securities interest income | 1,562 | 1,707 | 1,692 | 2,091 | 3,161 | ||||||||||||||||
Net (gain) loss on sale of securities | (697 | ) | (2,726 | ) | 121 | 283 | (4,474 | ) | |||||||||||||
Adjusted total revenue | 78,296 | 111,137 | 113,315 | 111,314 | 119,511 | ||||||||||||||||
Non-interest expense | 85,659 | 71,315 | 57,419 | 68,931 | 59,639 | ||||||||||||||||
Merger-related expense | (14,625 | ) | — | — | (265 | ) | — | ||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | (28,055 | ) | — | — | (2,485 | ) | — | ||||||||||||||
Charge on benefit plan settlement | — | (13,384 | ) | — | — | — | |||||||||||||||
Loss on extinguishment of FHLB borrowings | — | — | — | (8,716 | ) | — | |||||||||||||||
Amortization of intangible assets | (1,780 | ) | (3,431 | ) | (3,431 | ) | (3,053 | ) | (3,241 | ) | |||||||||||
Adjusted non-interest expense | 41,199 | 54,500 | 53,988 | 54,412 | 56,398 | ||||||||||||||||
Reported operating efficiency ratio | 110.6 | % | 63.6 | % | 51.5 | % | 63.3 | % | 49.4 | % | |||||||||||
Adjusted operating efficiency ratio | 52.6 | % | 49.0 | % | 47.6 | % | 48.9 | % | 47.2 | % | |||||||||||
The following table shows the reconciliation of reported net income (GAAP) and adjusted net income (non-GAAP) and adjusted diluted earnings per share5: | |||||||||||||||||||||
(Loss) income before income tax expense | $ | (11,328 | ) | $ | 35,841 | $ | 48,583 | $ | 36,009 | $ | 56,182 | ||||||||||
Income tax (benefit) expense | (3,682 | ) | 11,648 | 15,792 | 12,243 | 18,412 | |||||||||||||||
Net (loss) income (GAAP) | (7,646 | ) | 24,193 | 32,791 | 23,766 | 37,770 | |||||||||||||||
Adjustments: | |||||||||||||||||||||
Net (gain) loss on sale of securities | (697 | ) | (2,726 | ) | 121 | 283 | (4,474 | ) | |||||||||||||
Merger-related expense | 14,625 | — | — | 265 | — | ||||||||||||||||
Charge for asset write-downs, banking systems conversion, retention and severance | 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 | 991 | 961 | 961 | 968 | 969 | ||||||||||||||||
Total adjustments | 42,974 | 11,619 | 1,082 | 12,717 | (3,505 | ) | |||||||||||||||
Income tax (benefit) expense | (13,967 | ) | (3,777 | ) | (348 | ) | (4,324 | ) | 1,149 | ||||||||||||
Total adjustments net of taxes | 29,007 | 7,842 | 734 | 8,393 | (2,356 | ) | |||||||||||||||
Adjusted net income (non-GAAP) | $ | 21,361 | $ | 32,035 | $ | 33,525 | $ | 32,159 | $ | 35,414 | |||||||||||
Weighted average diluted shares | 91,950,776 | 130,192,937 | 130,354,779 | 130,500,975 | 130,688,729 | ||||||||||||||||
Diluted EPS as reported (GAAP) | $ | (0.08 | ) | $ | 0.19 | $ | 0.25 | $ | 0.18 | $ | 0.29 | ||||||||||
Adjusted diluted EPS (non-GAAP) | 0.23 | 0.25 | 0.26 | 0.25 | 0.27 |
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. See legend below. | |||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||
6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | |||||||||||||||
The following table shows a reconciliation of the allowance for loan losses and remaining purchase accounting adjustments to portfolio loans6: | |||||||||||||||||||
Allowance for loan losses | $ | 44,317 | $ | 47,611 | $ | 50,145 | $ | 53,014 | $ | 55,865 | |||||||||
Remaining purchase accounting adjustments: | |||||||||||||||||||
Acquired performing loans | 36,889 | 31,364 | 24,766 | 27,340 | 23,802 | ||||||||||||||
Purchased credit impaired loans | 18,014 | 17,783 | 16,617 | 16,862 | 15,955 | ||||||||||||||
Total remaining purchase accounting adjustments | 54,903 | 49,147 | 41,383 | 44,202 | 39,757 | ||||||||||||||
Total valuation balances recorded against portfolio loans | $ | 99,220 | $ | 96,758 | $ | 91,528 | $ | 97,216 | $ | 95,622 | |||||||||
Total portfolio loans, gross | $ | 7,235,587 | $ | 7,525,632 | $ | 7,859,360 | $ | 8,286,163 | $ | 8,594,295 | |||||||||
Remaining purchase accounting adjustments: | |||||||||||||||||||
Acquired performing loans | 36,889 | 31,364 | 24,766 | 27,340 | 23,802 | ||||||||||||||
Purchased credit impaired loans | 18,014 | 17,783 | 16,617 | 16,862 | 15,955 | ||||||||||||||
Adjusted portfolio loans, gross | $ | 7,290,490 | $ | 7,574,779 | $ | 7,900,743 | $ | 8,330,365 | $ | 8,634,052 | |||||||||
Allowance for loan losses to total portfolio loans, gross | 0.61 | % | 0.63 | % | 0.64 | % | 0.64 | % | 0.65 | % | |||||||||
Total valuation balances recorded against portfolio loans to adjusted gross portfolio loans | 1.36 | % | 1.28 | % | 1.16 | % | 1.17 | % | 1.11 | % |