Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated July 24, 2018 |
DATE: July 24, 2018 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 |
FOR IMMEDIATE RELEASE | STERLING BANCORP CONTACT: |
July 24, 2018 | Luis Massiani, SEVP & Chief Financial Officer |
845.369.8040 | |
http://www.sterlingbancorp.com |
($ in thousands except per share amounts) | GAAP / As Reported | Non-GAAP / As Adjusted1 | |||||||||||||||||||
6/30/2017 | 6/30/2018 | Change % / bps | 6/30/2017 | 6/30/2018 | Change % / bps | ||||||||||||||||
Total revenue2 | $ | 126,876 | $ | 284,084 | 123.9 | % | $ | 131,301 | $ | 276,806 | 110.8 | % | |||||||||
Net income available to common | 42,400 | 112,245 | 164.7 | 44,393 | 112,868 | 154.2 | |||||||||||||||
Diluted EPS available to common | 0.31 | 0.50 | 61.3 | 0.33 | 0.50 | 51.5 | |||||||||||||||
Net interest margin3 | 3.35 | % | 3.56 | % | 21 | 3.47 | % | 3.62 | % | 15 | |||||||||||
Return on average tangible common equity | 14.74 | 18.68 | 394 | 15.43 | 18.79 | 336 | |||||||||||||||
Return on average tangible assets | 1.22 | 1.54 | 32 | 1.28 | 1.55 | 27 | |||||||||||||||
Operating efficiency ratio4 | 47.0 | 44.0 | (300 | ) | 42.0 | 38.3 | (370 | ) |
▪ | Record net income available to common stockholders of $112.2 million (as reported) and $112.9 million (as adjusted). |
▪ | Total portfolio loans, gross were $20.7 billion and total deposits were $21.0 billion at June 30, 2018. |
▪ | Completed acquisition of Advantage Funding Management Co., Inc., including $457.6 million loan portfolio. |
▪ | Record low operating efficiency ratios of 44.0% (reported) and 38.3% (as adjusted). |
▪ | Operating leverage ratio of 2.9x relative to the same quarter a year ago. |
▪ | Tangible book value per common share1 of $10.91 at June 30, 2018; growth of 26.1% over the prior year. |
($ in thousands except per share amounts) | GAAP / As Reported | Non-GAAP / As Adjusted1 | |||||||||||||||||||
3/31/2018 | 6/30/2018 | Change % / bps | 3/31/2018 | 6/30/2018 | Change % / bps | ||||||||||||||||
Total revenue2 | $ | 253,077 | $ | 284,084 | 12.3 | % | $ | 262,568 | $ | 276,806 | 5.4 | % | |||||||||
Net income available to common | 96,873 | 112,245 | 15.9 | 100,880 | 112,868 | 11.9 | |||||||||||||||
Diluted EPS available to common | 0.43 | 0.50 | 16.3 | 0.45 | 0.50 | 11.1 | |||||||||||||||
Net interest margin3 | 3.54 | % | 3.56 | % | 2 | 3.60 | % | 3.62 | % | 2 | |||||||||||
Return on average tangible common equity | 16.55 | 18.68 | 213 | 17.24 | 18.79 | 155 | |||||||||||||||
Return on average tangible assets | 1.39 | 1.54 | 15 | 1.45 | 1.55 | 10 | |||||||||||||||
Operating efficiency ratio4 | 44.2 | 44.0 | (20 | ) | 40.3 | 38.3 | (200 | ) |
▪ | Growth in adjusted diluted earnings per share available to common stockholders of 11.1% over the linked quarter. |
▪ | Loan portfolio continues to transition; growth in average commercial loan balances of $897.2 million over linked quarter. |
▪ | Merger integration is on-track; annualized run-rate operating expenses of $424.9 million1 in the second quarter. |
▪ | Total deposit growth of $342.7 million; cost of total deposits increased eight basis points to 0.55%. |
▪ | Consolidated six financial centers, one back-office location and completed sale of Lake Success headquarters. |
▪ | a pre-tax gain of $11.8 million from the sale of Astoria’s Lake Success headquarters; |
▪ | a pre-tax charge of $8.7 million to vacate a back-office location which included a data operations center and was consolidated as a result of the Astoria Merger. This is the final anticipated charge associated with the Astoria Merger; |
▪ | a pre-tax charge of $4.4 million related to the acquisition of Advantage Funding for professional fees, severance, retention, systems integration expense and facilities consolidation; |
▪ | a pre-tax loss of $425.0 thousand on sale of available for sale securities; and |
▪ | the pre-tax amortization of non-compete agreements and acquired customer list intangible assets of $295 thousand. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Interest and dividend income | $ | 134,263 | $ | 281,346 | $ | 304,906 | 127.1 | % | 8.4 | % | |||||||
Interest expense | 21,005 | 46,976 | 58,690 | 179.4 | 24.9 | ||||||||||||
Net interest income | $ | 113,258 | $ | 234,370 | $ | 246,216 | 117.4 | 5.1 | |||||||||
Accretion income on acquired loans | $ | 2,888 | $ | 30,340 | $ | 28,010 | 869.9 | % | (7.7 | )% | |||||||
Yield on loans | 4.58 | % | 4.85 | % | 5.01 | % | 43 | 16 | |||||||||
Tax equivalent yield on investment securities | 2.93 | 2.85 | 2.88 | (5 | ) | 3 | |||||||||||
Tax equivalent yield on interest earning assets | 4.09 | 4.31 | 4.47 | 38 | 16 | ||||||||||||
Cost of total deposits | 0.43 | 0.47 | 0.55 | 12 | 8 | ||||||||||||
Cost of interest bearing deposits | 0.62 | 0.59 | 0.68 | 6 | 9 | ||||||||||||
Cost of borrowings | 1.75 | 2.01 | 2.23 | 48 | 22 | ||||||||||||
Cost of interest bearing liabilities | 0.89 | 0.89 | 1.06 | 17 | 17 | ||||||||||||
Tax equivalent net interest margin5 | 3.47 | 3.60 | 3.62 | 15 | 2 | ||||||||||||
Average loans, including loans held for sale | $ | 9,786,423 | $ | 19,635,900 | $ | 20,339,964 | 107.8 | % | 3.6 | % | |||||||
Average investment securities | 3,434,535 | 6,602,175 | 6,751,528 | 96.6 | 2.3 | ||||||||||||
Average total interest earning assets | 13,562,853 | 26,833,922 | 27,757,380 | 104.7 | 3.4 | ||||||||||||
Average deposits and mortgage escrow | 10,285,349 | 20,688,147 | 20,768,669 | 101.9 | 0.4 |
▪ | The yield on loans was 5.01% compared to 4.58% for the three months ended June 30, 2017. The increase in yield on loans was mainly due to an increase in accretion income on acquired loans, which was $28.0 million in the second quarter of 2018 compared to $2.9 million in the second quarter of 2017. |
▪ | Average commercial loans6 were $15.2 billion compared to $8.8 billion in the second quarter of 2017, an increase of $6.4 billion or 72.3%. |
▪ | The tax equivalent yield on investment securities decreased five basis points to 2.88%. This was mainly due to the change in the federal income tax rate resulting from the Tax Cuts and Jobs Act of 2017 as the tax equivalent adjustment assumed a 35% federal tax rate in 2017 compared to 21% in 2018. Average tax exempt securities balances grew to $2.6 billion for the quarter ended June 30, 2018, compared to $1.3 billion in the second quarter of 2017. Average investment securities were $6.8 billion, or 24.3%, of average earning assets for the second quarter of 2018 compared to $3.4 billion, or 25.3%, of average earning assets for the second quarter of 2017. |
▪ | The tax equivalent yield on interest earning assets increased 38 basis points between the periods to 4.47%, mainly due to higher accretion income on acquired loans, as described above. |
▪ | The cost of total deposits was 55 basis points and the cost of borrowings was 2.23%, compared to 43 basis points and 1.75%, respectively, for the same period a year ago. |
▪ | The total cost of interest bearing liabilities increased 17 basis points to 1.06% for the second quarter of 2018 compared to 0.89% for the second quarter of 2017. The increase was mainly due to an increase in market interest rates, which increased the cost of wholesale, brokered and certificates of deposit between the periods. |
▪ | The yield on loans was 5.01% compared to 4.85% for the linked quarter, an increase of 16 basis points. This was mainly due to the Advantage Funding acquisition; loan prepayment activity, which increased interest income on commercial loans by $2.5 million; and repricing of floating rate loans given increases in interest rates. Accretion income on acquired loans was $28.0 million in the second quarter of 2018 compared to $30.3 million in the linked quarter. |
▪ | The average balance of portfolio loans increased $704.1 million and the average balance of commercial loans increased $897.2 million compared to the linked quarter. The average balance of residential mortgage loans declined $175.6 million compared to the linked quarter, mainly due to repayments. The increase in the average balance of commercial loans was due to organic growth and the Advantage Funding acquisition, which represented $457.8 million of the increase in the average balance. |
▪ | The tax equivalent yield on investment securities increased three basis points to 2.88% in the second quarter of 2018, mainly due to higher market interest rates on the acquisition of securities. The average balance of investment securities increased $149.4 million compared to the linked quarter. |
▪ | The tax equivalent yield on interest earning assets increased 16 basis points in the second quarter of 2018 to 4.47% compared to 4.31% in the linked quarter. |
▪ | The cost of total deposits increased eight basis points to 55 basis points in the quarter. The total cost of borrowings increased to 2.23% compared to 2.01% in the linked quarter, mainly due to higher rates paid on borrowings from the Federal Home Loan Bank of New York given increases in interest rates. |
▪ | Average interest bearing deposits increased by $90.9 million and average borrowings increased $834.7 million relative to the linked quarter. Total interest expense increased by $11.7 million over the linked quarter. |
($ in thousands) | For the three months ended | Change % | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Total non-interest income | $ | 13,618 | $ | 18,707 | $ | 37,868 | 178.1 | % | 102.4 | % | |||||||
Net (loss) on sale of securities | (230 | ) | (5,421 | ) | (425 | ) | 84.8 | (92.2 | ) | ||||||||
Net gain on sale of Lake Success facility | — | — | 11,797 | NM | NM | ||||||||||||
Adjusted non-interest income | $ | 13,848 | $ | 24,128 | $ | 26,496 | 91.3 | 9.8 |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Compensation and benefits | $ | 31,394 | $ | 54,680 | $ | 56,159 | 78.9 | % | 2.7 | % | |||||||
Stock-based compensation plans | 1,897 | 2,854 | 3,336 | 75.9 | 16.9 | ||||||||||||
Occupancy and office operations | 8,833 | 17,460 | 17,939 | 103.1 | 2.7 | ||||||||||||
Information technology | 2,421 | 11,718 | 9,997 | 312.9 | (14.7 | ) | |||||||||||
Amortization of intangible assets | 2,187 | 6,052 | 5,865 | 168.2 | (3.1 | ) | |||||||||||
FDIC insurance and regulatory assessments | 2,034 | 5,347 | 5,495 | 170.2 | 2.8 | ||||||||||||
Other real estate owned, net (“OREO”) | 112 | 364 | (226 | ) | (301.8 | ) | (162.1 | ) | |||||||||
Merger-related expenses | 1,766 | — | — | NM | NM | ||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 603 | — | 13,132 | NM | NM | ||||||||||||
Other expenses | 8,410 | 13,274 | 13,231 | 57.3 | (0.3 | ) | |||||||||||
Total non-interest expense | $ | 59,657 | $ | 111,749 | $ | 124,928 | 109.4 | 11.8 | |||||||||
Full time equivalent employees (“FTEs”) at period end | 997 | 2,016 | 2,037 | 104.3 | 1.0 | ||||||||||||
Financial centers at period end | 40 | 127 | 121 | 202.5 | (4.7 | ) | |||||||||||
Operating efficiency ratio, as reported | 47.0 | % | 44.2 | % | 44.0 | % | 300 | 20 | |||||||||
Operating efficiency ratio, as adjusted6 | 42.0 | 40.3 | 38.3 | 370 | 200 |
▪ | Compensation and benefits increased $24.8 million between the periods. Total FTEs increased to 2,037 from 997, which was mainly due to the Astoria Merger and the continued hiring of commercial bankers and risk management personnel. |
▪ | Occupancy and office operations increased $9.1 million mainly due to the financial centers and other locations acquired in the Astoria Merger. |
▪ | Information technology expense increased $7.6 million between the periods. The increase is mainly due to the Astoria Merger. We anticipate this expense will decrease upon completion of our full systems conversion, which is scheduled for the third quarter of 2018. |
▪ | Amortization of intangible assets increased $3.7 million. The increase is mainly due to the amortization of the core deposit intangible asset that was recorded in the Astoria Merger. |
▪ | FDIC insurance and regulatory assessments increased $3.5 million to $5.5 million in the second quarter of 2018, compared to $2.0 million for the second quarter of 2017. This was mainly due to growth in our total assets. |
▪ | OREO expense, net declined $338 thousand to $226 thousand of income in the second quarter of 2018, compared to $112 thousand of expense for the second quarter of 2017. In the second quarter of 2018, gain on sale of OREO was $811 thousand, which substantially offset OREO write-downs and maintenance expense. |
▪ | Charge for asset write-downs, systems integration, retention and severance was $13.1 million compared to $603 thousand in the second quarter of 2017. The charge in the second quarter of 2018 included an $8.7 million charge related to the Astoria Merger. This impairment charge had been identified at the time of the closing of the Astoria Merger; however, our consolidation strategy had not met the cease use requirements to record the impairment charge until this period. This charge is the final anticipated Astoria Merger-related item. Since the announcement of the Astoria Merger, total merger-related expense has been an aggregate of $152.5 million, which is below the Company’s initial merger announcement date estimate of $165.0 million. The balance of the charge which was recorded in the second quarter of 2018 of $4.4 million was related to the Advantage Funding acquisition. The charge included, professional fees, retention and severance, systems integration costs, and an impairment of a real estate lease assumed in the transaction. |
▪ | Other expenses increased $4.8 million, mainly due to the Astoria Merger, and included communications expense, professional fees, operational losses, advertising and other. |
▪ | Compensation and benefits increased $1.5 million and was $56.2 million in the second quarter of 2018 compared to $54.7 million in the linked quarter. This was mainly due to the addition of Advantage Funding personnel. |
▪ | Occupancy and office operations increased $479 thousand mainly due to real estate taxes paid during the second quarter of 2018. |
▪ | Information technology expense declined $1.7 million in the second quarter of 2018 compared to the linked quarter, mainly as a result of consolidation and termination of duplicative systems. |
▪ | OREO expense declined $590 thousand in the second quarter of 2018 compared to the linked quarter and resulted in a gain, as described above. |
($ in thousands) | As of | Change % / bps | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Total assets | $ | 15,376,676 | $ | 30,468,780 | $ | 31,463,077 | 104.6 | % | 3.3 | % | |||||||
Total portfolio loans, gross | 10,232,317 | 19,939,245 | 20,674,493 | 102.1 | 3.7 | ||||||||||||
Commercial & industrial (“C&I”) loans | 4,619,789 | 5,341,548 | 6,288,683 | 36.1 | 17.7 | ||||||||||||
Commercial real estate loans | 4,430,985 | 9,099,606 | 9,160,760 | 106.7 | 0.7 | ||||||||||||
Acquisition, development and construction loans | 223,713 | 262,591 | 236,915 | 5.9 | (9.8 | ) | |||||||||||
Total commercial loans | 9,274,487 | 14,703,745 | 15,686,358 | 69.1 | 6.7 | ||||||||||||
Residential mortgage loans | 692,562 | 4,883,452 | 4,652,501 | 571.8 | (4.7 | ) | |||||||||||
Total deposits | 10,502,710 | 20,623,233 | 20,965,889 | 99.6 | 1.7 | ||||||||||||
Core deposits 8 | 9,593,150 | 19,538,410 | 19,870,947 | 107.1 | 1.7 | ||||||||||||
Investment securities | 3,552,176 | 6,635,286 | 6,789,246 | 91.1 | 2.3 | ||||||||||||
Total borrowings | 2,661,838 | 4,927,594 | 5,537,537 | 108.0 | 12.4 | ||||||||||||
Loans to deposits | 97.4 | % | 96.7 | % | 98.6 | % | 120 | 190 | |||||||||
Core deposits to total deposits | 87.9 | 94.7 | 94.8 | 690 | 10 | ||||||||||||
Investment securities to total assets | 23.1 | 21.8 | 21.6 | (150 | ) | (20 | ) |
▪ | C&I loans (which include traditional C&I, asset-based lending, payroll finance, warehouse lending, factored receivables, equipment financing and public sector finance loans) represented 30.4%, commercial real estate loans (which include multi-family loans) represented 44.3%, consumer and residential mortgage loans combined represented 24.1%, and acquisition, development and construction loans represented 1.2% of the total loan portfolio. Loan growth in the year-over-year period was mainly a result of the Astoria Merger, originations by our commercial banking teams and the Advantage Funding acquisition. Linked quarter comparisons are discussed below. |
▪ | C&I loans grew $947.1 million in the second quarter of 2018 compared to the linked quarter, which included $457.6 million of loans acquired in the Advantage Funding transaction. |
▪ | Total commercial loans, which include all C&I loans, commercial real estate (including multi-family) and acquisition, development and construction loans, increased by $982.6 million in the linked quarter. Excluding loans acquired in the Astoria Merger, commercial loans increased by $1.9 billion in the past twelve months. |
▪ | Residential mortgage loans were $4.7 billion at June 30, 2018, compared to $4.9 billion at March 31, 2018. The decline was mainly due to repayments of loans acquired in the Astoria Merger. |
▪ | Total deposits at June 30, 2018 increased $342.7 million compared to March 31, 2018, and increased $10.5 billion over June 30, 2017. We assumed $9.0 billion of deposits in the Astoria Merger. The remaining increase in deposits was mainly due to growth in commercial deposits and certificates of deposit. |
▪ | Core deposits at June 30, 2018 increased $332.5 million compared to March 31, 2018. Core deposits increased $10.3 billion over June 30, 2017. |
▪ | Municipal deposits at June 30, 2018 were $1.6 billion and experienced a seasonal decline of $122.7 million relative to March 31, 2018. |
▪ | Investment securities increased by $154.0 million relative to March 31, 2018, and represented 21.6% of total assets at June 30, 2018. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Provision for loan losses | $ | 4,500 | $ | 13,000 | $ | 13,000 | 188.9 | % | — | % | |||||||
Net charge-offs | 1,288 | 8,815 | 9,066 | 603.9 | 2.8 | ||||||||||||
Allowance for loan losses | 70,151 | 82,092 | 86,026 | 22.6 | 4.8 | ||||||||||||
Non-performing loans | 71,351 | 182,046 | 190,975 | 167.7 | 4.9 | ||||||||||||
Loans 30 to 89 days past due | 15,070 | 59,818 | 73,441 | 387.3 | 22.8 | ||||||||||||
Annualized net charge-offs to average loans | 0.05 | % | 0.18 | % | 0.18 | % | 13 | — | |||||||||
Allowance for loan losses to total loans | 0.69 | 0.41 | 0.42 | (27 | ) | 1 | |||||||||||
Allowance for loan losses to non-performing loans | 98.3 | 45.1 | 45.0 | (5,330 | ) | (10 | ) |
($ in thousands, except share and per share data) | As of | Change % / bps | |||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | Y-o-Y | Three months | |||||||||||||
Total stockholders’ equity | $ | 1,931,383 | $ | 4,273,755 | $ | 4,352,735 | 125.4 | % | 1.8 | % | |||||||
Preferred stock | — | 139,025 | 138,828 | NM | (0.1 | ) | |||||||||||
Goodwill and intangible assets | 758,484 | 1,727,030 | 1,754,418 | 131.3 | 1.6 | ||||||||||||
Tangible common stockholders’ equity | $ | 1,172,899 | $ | 2,407,700 | $ | 2,459,489 | 109.7 | 2.2 | |||||||||
Common shares outstanding | 135,658,226 | 225,466,266 | 225,470,254 | 66.2 | — | ||||||||||||
Book value per common share | $ | 14.24 | $ | 18.34 | $ | 18.69 | 31.3 | 1.9 | |||||||||
Tangible book value per common share 9 | 8.65 | 10.68 | 10.91 | 26.1 | 2.2 | ||||||||||||
Tangible common equity to tangible assets 9 | 8.02 | % | 8.38 | % | 8.28 | % | 26 | (10 | ) | ||||||||
Estimated Tier 1 leverage ratio - Company | 8.72 | 9.39 | 9.32 | 60 | (7 | ) | |||||||||||
Estimated Tier 1 leverage ratio - Bank | 8.89 | 10.00 | 9.84 | 95 | (16 | ) |
6/30/2017 | 12/31/2017 | 6/30/2018 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 282,167 | $ | 479,906 | $ | 445,189 | |||||
Investment securities | 3,552,176 | 6,474,561 | 6,789,246 | ||||||||
Loans held for sale | — | 5,246 | 30,626 | ||||||||
Portfolio loans: | |||||||||||
Commercial and industrial (“C&I”) | 4,619,789 | 5,306,821 | 6,288,683 | ||||||||
Commercial real estate (including multi-family) | 4,430,985 | 8,998,419 | 9,160,760 | ||||||||
Acquisition, development and construction | 223,713 | 282,792 | 236,915 | ||||||||
Residential mortgage | 692,562 | 5,054,732 | 4,652,501 | ||||||||
Consumer | 265,268 | 366,219 | 335,634 | ||||||||
Total portfolio loans, gross | 10,232,317 | 20,008,983 | 20,674,493 | ||||||||
Allowance for loan losses | (70,151 | ) | (77,907 | ) | (86,026 | ) | |||||
Total portfolio loans, net | 10,162,166 | 19,931,076 | 20,588,467 | ||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 160,241 | 284,112 | 380,404 | ||||||||
Accrued interest receivable | 47,548 | 94,098 | 103,095 | ||||||||
Premises and equipment, net | 57,794 | 321,722 | 290,762 | ||||||||
Goodwill | 696,600 | 1,579,891 | 1,613,144 | ||||||||
Other intangibles | 61,884 | 153,191 | 141,274 | ||||||||
Bank owned life insurance | 202,911 | 651,638 | 657,637 | ||||||||
Other real estate owned | 10,198 | 27,095 | 20,264 | ||||||||
Other assets | 142,991 | 357,005 | 402,969 | ||||||||
Total assets | $ | 15,376,676 | $ | 30,359,541 | $ | 31,463,077 | |||||
Liabilities: | |||||||||||
Deposits | $ | 10,502,710 | $ | 20,538,204 | $ | 20,965,889 | |||||
FHLB borrowings | 2,290,000 | 4,510,123 | 5,067,492 | ||||||||
Other borrowings | 122,596 | 30,162 | 19,114 | ||||||||
Senior notes | 76,635 | 278,209 | 278,103 | ||||||||
Subordinated notes | 172,607 | 172,716 | 172,828 | ||||||||
Mortgage escrow funds | 16,431 | 122,641 | 130,629 | ||||||||
Other liabilities | 264,314 | 467,308 | 476,287 | ||||||||
Total liabilities | 13,445,293 | 26,119,363 | 27,110,342 | ||||||||
Stockholders’ equity: | |||||||||||
Preferred stock | — | 139,220 | 138,828 | ||||||||
Common stock | 1,411 | 2,299 | 2,299 | ||||||||
Additional paid-in capital | 1,592,299 | 3,780,908 | 3,769,505 | ||||||||
Treasury stock | (61,576 | ) | (58,039 | ) | (51,269 | ) | |||||
Retained earnings | 415,617 | 401,956 | 592,953 | ||||||||
Accumulated other comprehensive (loss) | (16,368 | ) | (26,166 | ) | (99,581 | ) | |||||
Total stockholders’ equity | 1,931,383 | 4,240,178 | 4,352,735 | ||||||||
Total liabilities and stockholders’ equity | $ | 15,376,676 | $ | 30,359,541 | $ | 31,463,077 | |||||
Shares of common stock outstanding at period end | 135,658,226 | 224,782,694 | 225,470,254 | ||||||||
Book value per common share | $ | 14.24 | $ | 18.24 | $ | 18.69 | |||||
Tangible book value per common share1 | 8.65 | 10.53 | 10.91 |
For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||
6/30/2017 | 3/31/2018 | 6/30/2018 | 6/30/2017 | 6/30/2018 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Loans and loan fees | $ | 111,840 | $ | 234,615 | $ | 254,253 | $ | 216,410 | $ | 488,868 | |||||||||
Securities taxable | 13,113 | 27,061 | 29,031 | 25,395 | 56,092 | ||||||||||||||
Securities non-taxable | 7,791 | 15,312 | 15,403 | 15,409 | 30,715 | ||||||||||||||
Other earning assets | 1,519 | 4,358 | 6,219 | 3,049 | 10,576 | ||||||||||||||
Total interest and dividend income | 134,263 | 281,346 | 304,906 | 260,263 | 586,251 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 10,905 | 24,206 | 28,464 | 20,413 | 52,671 | ||||||||||||||
Borrowings | 10,100 | 22,770 | 30,226 | 17,802 | 52,996 | ||||||||||||||
Total interest expense | 21,005 | 46,976 | 58,690 | 38,215 | 105,667 | ||||||||||||||
Net interest income | 113,258 | 234,370 | 246,216 | 222,048 | 480,584 | ||||||||||||||
Provision for loan losses | 4,500 | 13,000 | 13,000 | 9,000 | 26,000 | ||||||||||||||
Net interest income after provision for loan losses | 108,758 | 221,370 | 233,216 | 213,048 | 454,584 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Deposit fees and service charges | 3,249 | 7,003 | 6,985 | 6,584 | 13,988 | ||||||||||||||
Accounts receivable management / factoring commissions and other related fees | 4,137 | 5,360 | 5,337 | 7,906 | 10,696 | ||||||||||||||
Bank owned life insurance | 1,652 | 3,614 | 4,243 | 3,022 | 7,857 | ||||||||||||||
Loan commissions and fees | 2,836 | 3,406 | 4,566 | 5,823 | 7,973 | ||||||||||||||
Investment management fees | 323 | 1,825 | 2,121 | 554 | 3,946 | ||||||||||||||
Net (loss) on sale of securities | (230 | ) | (5,421 | ) | (425 | ) | (253 | ) | (5,846 | ) | |||||||||
Gain on sale of fixed assets | — | 4 | 11,797 | — | 11,800 | ||||||||||||||
Other | 1,651 | 2,916 | 3,244 | 2,818 | 6,161 | ||||||||||||||
Total non-interest income | 13,618 | 18,707 | 37,868 | 26,454 | 56,575 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and benefits | 31,394 | 54,680 | 56,159 | 62,785 | 110,840 | ||||||||||||||
Stock-based compensation plans | 1,897 | 2,854 | 3,336 | 3,633 | 6,190 | ||||||||||||||
Occupancy and office operations | 8,833 | 17,460 | 17,939 | 16,967 | 35,399 | ||||||||||||||
Information technology | 2,421 | 11,718 | 9,997 | 4,890 | 21,713 | ||||||||||||||
Amortization of intangible assets | 2,187 | 6,052 | 5,865 | 4,416 | 11,917 | ||||||||||||||
FDIC insurance and regulatory assessments | 2,034 | 5,347 | 5,495 | 3,922 | 10,841 | ||||||||||||||
Other real estate owned, net | 112 | 364 | (226 | ) | 1,788 | 138 | |||||||||||||
Merger-related expenses | 1,766 | — | — | 4,893 | — | ||||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 603 | — | 13,132 | 603 | 13,132 | ||||||||||||||
Other | 8,410 | 13,274 | 13,231 | 16,110 | 26,505 | ||||||||||||||
Total non-interest expense | 59,657 | 111,749 | 124,928 | 120,007 | 236,675 | ||||||||||||||
Income before income tax expense | 62,719 | 128,328 | 146,156 | 119,495 | 274,484 | ||||||||||||||
Income tax expense | 20,319 | 29,456 | 31,915 | 38,028 | 61,371 | ||||||||||||||
Net income | 42,400 | 98,872 | 114,241 | 81,467 | 213,113 | ||||||||||||||
Preferred stock dividend | — | 1,999 | 1,996 | — | 3,995 | ||||||||||||||
Net income available to common stockholders | $ | 42,400 | $ | 96,873 | $ | 112,245 | $ | 81,467 | $ | 209,118 | |||||||||
Weighted average common shares: | |||||||||||||||||||
Basic | 135,317,866 | 224,730,686 | 225,084,232 | 135,241,034 | 224,908,436 | ||||||||||||||
Diluted | 135,922,897 | 225,264,147 | 225,621,856 | 135,867,861 | 225,444,579 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic earnings per share | $ | 0.31 | $ | 0.43 | $ | 0.50 | $ | 0.60 | $ | 0.93 | |||||||||
Diluted earnings per share | 0.31 | 0.43 | 0.50 | 0.60 | 0.93 | ||||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.14 | 0.14 |
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 6/30/2017 | 9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | ||||||||||||||
Total assets | $ | 15,376,676 | $ | 16,780,097 | $ | 30,359,541 | $ | 30,468,780 | $ | 31,463,077 | |||||||||
Tangible assets 1 | 14,618,192 | 16,023,807 | 28,626,459 | 28,741,750 | 29,708,659 | ||||||||||||||
Securities available for sale | 2,095,872 | 2,579,076 | 3,612,072 | 3,760,338 | 3,929,386 | ||||||||||||||
Securities held to maturity | 1,456,304 | 1,936,574 | 2,862,489 | 2,874,948 | 2,859,860 | ||||||||||||||
Portfolio loans | 10,232,317 | 10,493,535 | 20,008,983 | 19,939,245 | 20,674,493 | ||||||||||||||
Goodwill | 696,600 | 696,600 | 1,579,891 | 1,579,891 | 1,613,144 | ||||||||||||||
Other intangibles | 61,884 | 59,690 | 153,191 | 147,139 | 141,274 | ||||||||||||||
Deposits | 10,502,710 | 11,043,438 | 20,538,204 | 20,623,233 | 20,965,889 | ||||||||||||||
Municipal deposits (included above) | 1,297,244 | 1,751,012 | 1,585,076 | 1,775,472 | 1,652,733 | ||||||||||||||
Borrowings | 2,661,838 | 3,453,783 | 4,991,210 | 4,927,594 | 5,537,537 | ||||||||||||||
Stockholders’ equity | 1,931,383 | 1,971,480 | 4,240,178 | 4,273,755 | 4,352,735 | ||||||||||||||
Tangible common equity 1 | 1,172,899 | 1,215,190 | 2,367,876 | 2,407,700 | 2,459,489 | ||||||||||||||
Quarterly Average Balances | |||||||||||||||||||
Total assets | 14,704,793 | 15,661,514 | 29,277,502 | 30,018,289 | 30,994,904 | ||||||||||||||
Tangible assets 1 | 13,944,946 | 14,904,016 | 27,567,351 | 28,287,337 | 29,237,608 | ||||||||||||||
Loans, gross: | |||||||||||||||||||
Commercial real estate (includes multi-family) | 4,396,281 | 4,443,142 | 8,839,256 | 9,028,849 | 9,100,098 | ||||||||||||||
Acquisition, development and construction | 251,404 | 229,242 | 246,141 | 267,638 | 247,500 | ||||||||||||||
Commercial and industrial: | |||||||||||||||||||
Traditional commercial and industrial | 1,497,005 | 1,631,436 | 1,911,450 | 1,933,323 | 2,026,313 | ||||||||||||||
Asset-based lending2 | 737,039 | 740,037 | 781,732 | 781,392 | 778,708 | ||||||||||||||
Payroll finance2 | 225,080 | 229,522 | 250,673 | 229,920 | 219,545 | ||||||||||||||
Warehouse lending2 | 430,312 | 607,994 | 564,593 | 495,133 | 731,385 | ||||||||||||||
Factored receivables2 | 181,499 | 191,749 | 224,966 | 217,865 | 224,159 | ||||||||||||||
Equipment financing2 | 660,404 | 687,254 | 677,271 | 689,493 | 1,140,803 | ||||||||||||||
Public sector finance2 | 441,456 | 476,525 | 480,800 | 653,344 | 725,675 | ||||||||||||||
Total commercial and industrial | 4,172,795 | 4,564,517 | 4,891,485 | 5,000,470 | 5,846,588 | ||||||||||||||
Residential mortgage | 697,441 | 686,820 | 5,168,622 | 4,977,191 | 4,801,595 | ||||||||||||||
Consumer | 268,502 | 262,693 | 372,981 | 361,752 | 344,183 | ||||||||||||||
Loans, total3 | 9,786,423 | 10,186,414 | 19,518,485 | 19,635,900 | 20,339,964 | ||||||||||||||
Securities (taxable) | 2,142,168 | 2,483,718 | 3,840,147 | 3,997,542 | 4,130,949 | ||||||||||||||
Securities (non-taxable) | 1,292,367 | 1,432,358 | 2,086,677 | 2,604,633 | 2,620,579 | ||||||||||||||
Other interest earning assets | 341,895 | 368,630 | 598,439 | 595,847 | 665,888 | ||||||||||||||
Total earning assets | 13,562,853 | 14,471,120 | 26,043,748 | 26,833,922 | 27,757,380 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 3,185,506 | 3,042,392 | 4,043,213 | 3,971,079 | 3,960,683 | ||||||||||||||
Interest bearing demand | 1,973,498 | 2,298,645 | 3,862,461 | 3,941,749 | 4,024,972 | ||||||||||||||
Savings (including mortgage escrow funds) | 816,092 | 825,620 | 2,871,885 | 2,917,624 | 2,916,755 | ||||||||||||||
Money market | 3,725,257 | 3,889,780 | 7,324,196 | 7,393,335 | 7,337,904 | ||||||||||||||
Certificates of deposit | 584,996 | 634,569 | 2,382,102 | 2,464,360 | 2,528,355 | ||||||||||||||
Total deposits and mortgage escrow | 10,285,349 | 10,691,006 | 20,483,857 | 20,688,147 | 20,768,669 | ||||||||||||||
Borrowings | 2,313,992 | 2,779,143 | 4,121,605 | 4,597,903 | 5,432,582 | ||||||||||||||
Stockholders’ equity | 1,913,933 | 1,955,252 | 4,235,739 | 4,243,897 | 4,305,928 | ||||||||||||||
Tangible common equity 1 | 1,154,086 | 1,197,754 | 2,386,245 | 2,373,794 | 2,409,674 | ||||||||||||||
1 See a reconciliation of non-GAAP financial measures beginning on page 17. | |||||||||||||||||||
2 Asset-based lending, payroll finance, warehouse lending, factored receivables, equipment finance and public sector finance comprise our commercial finance loan portfolio. | |||||||||||||||||||
3 Includes loans held for sale, but excludes allowance for loan losses. |
As of and for the Quarter Ended | |||||||||||||||||||
Per Common Share Data | 6/30/2017 | 9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | ||||||||||||||
Basic earnings (loss) per share | $ | 0.31 | $ | 0.33 | $ | (0.16 | ) | $ | 0.43 | $ | 0.50 | ||||||||
Diluted earnings (loss) per share | 0.31 | 0.33 | (0.16 | ) | 0.43 | 0.50 | |||||||||||||
Adjusted diluted earnings per share, non-GAAP 1 | 0.33 | 0.35 | 0.39 | 0.45 | 0.50 | ||||||||||||||
Dividends declared per common share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Book value per share | 14.24 | 14.52 | 18.24 | 18.34 | 18.69 | ||||||||||||||
Tangible book value per share1 | 8.65 | 8.95 | 10.53 | 10.68 | 10.91 | ||||||||||||||
Shares of common stock o/s | 135,658,226 | 135,807,544 | 224,782,694 | 225,466,266 | 225,470,254 | ||||||||||||||
Basic weighted average common shares o/s | 135,317,866 | 135,346,791 | 223,501,073 | 224,730,686 | 225,084,232 | ||||||||||||||
Diluted weighted average common shares o/s | 135,922,897 | 135,950,160 | 224,055,991 | 225,264,147 | 225,621,856 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | 1.16 | % | 1.14 | % | (0.48 | )% | 1.31 | % | 1.45 | % | |||||||||
Return on average equity | 8.89 | 9.10 | (3.30 | ) | 9.26 | 10.46 | |||||||||||||
Return on average tangible assets | 1.22 | 1.19 | (0.51 | ) | 1.39 | 1.54 | |||||||||||||
Return on avg tangible common equity | 14.74 | 14.86 | (5.87 | ) | 16.55 | 18.68 | |||||||||||||
Return on average tangible assets, adjusted 1 | 1.28 | 1.27 | 1.25 | 1.45 | 1.55 | ||||||||||||||
Return on avg tangible common equity, adjusted 1 | 15.43 | 15.85 | 14.49 | 17.24 | 18.79 | ||||||||||||||
Operating efficiency ratio, as adjusted 1 | 42.0 | 40.6 | 41.4 | 40.3 | 38.3 | ||||||||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Accretion income on acquired loans | $ | 2,888 | $ | 3,397 | $ | 33,726 | $ | 30,340 | $ | 28,010 | |||||||||
Yield on loans | 4.58 | % | 4.67 | % | 4.77 | % | 4.85 | % | 5.01 | % | |||||||||
Yield on investment securities - tax equivalent 2 | 2.93 | 2.87 | 3.03 | 2.85 | 2.88 | ||||||||||||||
Yield on interest earning assets - tax equivalent 2 | 4.09 | 4.12 | 4.32 | 4.31 | 4.47 | ||||||||||||||
Cost of interest bearing deposits | 0.62 | 0.69 | 0.54 | 0.59 | 0.68 | ||||||||||||||
Cost of total deposits | 0.43 | 0.50 | 0.43 | 0.47 | 0.55 | ||||||||||||||
Cost of borrowings | 1.75 | 1.75 | 1.94 | 2.01 | 2.23 | ||||||||||||||
Cost of interest bearing liabilities | 0.89 | 0.97 | 0.82 | 0.89 | 1.06 | ||||||||||||||
Net interest rate spread - tax equivalent basis 2 | 3.20 | 3.15 | 3.50 | 3.42 | 3.41 | ||||||||||||||
Net interest margin - GAAP basis | 3.35 | 3.29 | 3.57 | 3.54 | 3.56 | ||||||||||||||
Net interest margin - tax equivalent basis 2 | 3.47 | 3.42 | 3.67 | 3.60 | 3.62 | ||||||||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company 3 | 8.72 | % | 8.42 | % | 9.39 | % | 9.39 | % | 9.32 | % | |||||||||
Tier 1 leverage ratio - Bank only 3 | 8.89 | 8.54 | 10.10 | 10.00 | 9.84 | ||||||||||||||
Tier 1 risk-based capital ratio - Bank only 3 | 10.64 | 10.42 | 12.10 | 14.23 | 13.93 | ||||||||||||||
Total risk-based capital ratio - Bank only 3 | 12.73 | 12.42 | 13.20 | 15.51 | 15.18 | ||||||||||||||
Tangible equity to tangible assets - Company 1 | 8.02 | 7.58 | 8.27 | 8.38 | 8.28 | ||||||||||||||
Condensed Five Quarter Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 134,263 | $ | 145,692 | $ | 276,495 | $ | 281,346 | $ | 304,906 | |||||||||
Interest expense | 21,005 | 25,619 | 42,471 | 46,976 | 58,690 | ||||||||||||||
Net interest income | 113,258 | 120,073 | 234,024 | 234,370 | 246,216 | ||||||||||||||
Provision for loan losses | 4,500 | 5,000 | 12,000 | 13,000 | 13,000 | ||||||||||||||
Net interest income after provision for loan losses | 108,758 | 115,073 | 222,024 | 221,370 | 233,216 | ||||||||||||||
Non-interest income | 13,618 | 13,988 | 23,762 | 18,707 | 37,868 | ||||||||||||||
Non-interest expense | 59,657 | 62,617 | 250,746 | 111,749 | 124,928 | ||||||||||||||
Income (loss) before income tax expense | 62,719 | 66,444 | (4,960 | ) | 128,328 | 146,156 | |||||||||||||
Income tax expense | 20,319 | 21,592 | 28,319 | 29,456 | 31,915 | ||||||||||||||
Net income (loss) | $ | 42,400 | $ | 44,852 | $ | (33,279 | ) | $ | 98,872 | $ | 114,241 | ||||||||
1 See a reconciliation of non-GAAP financial measures beginning on page 17. | |||||||||||||||||||
2 Tax equivalent basis represents interest income earned on tax exempt securities divided by the applicable Federal tax rate of 35% in 2017 and 21% in 2018. | |||||||||||||||||||
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 | 6/30/2017 | 9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | ||||||||||||||
Balance, beginning of period | $ | 66,939 | $ | 70,151 | $ | 72,128 | $ | 77,907 | $ | 82,092 | |||||||||
Provision for loan losses | 4,500 | 5,000 | 12,000 | 13,000 | 13,000 | ||||||||||||||
Loan charge-offs1: | |||||||||||||||||||
Traditional commercial & industrial | (164 | ) | (68 | ) | (4,570 | ) | (3,572 | ) | (1,831 | ) | |||||||||
Payroll finance | — | (188 | ) | — | — | (314 | ) | ||||||||||||
Factored receivables | (12 | ) | (564 | ) | (110 | ) | (3 | ) | (160 | ) | |||||||||
Equipment financing | (610 | ) | (741 | ) | (1,343 | ) | (4,199 | ) | (2,477 | ) | |||||||||
Commercial real estate | (944 | ) | (1,345 | ) | (7 | ) | (1,353 | ) | (3,166 | ) | |||||||||
Acquisition development & construction | (22 | ) | (5 | ) | — | — | (721 | ) | |||||||||||
Residential mortgage | (120 | ) | (389 | ) | (193 | ) | (39 | ) | (544 | ) | |||||||||
Consumer | (417 | ) | (156 | ) | (408 | ) | (125 | ) | (491 | ) | |||||||||
Total charge offs | (2,289 | ) | (3,456 | ) | (6,631 | ) | (9,291 | ) | (9,704 | ) | |||||||||
Recoveries of loans previously charged-off1: | |||||||||||||||||||
Traditional commercial & industrial | 523 | 316 | 164 | 214 | 225 | ||||||||||||||
Asset-based lending | 1 | 1 | — | — | 9 | ||||||||||||||
Payroll finance | — | 1 | 5 | 22 | 7 | ||||||||||||||
Factored receivables | 2 | 5 | — | 3 | 2 | ||||||||||||||
Equipment financing | 146 | 45 | 56 | 72 | 190 | ||||||||||||||
Commercial real estate | 98 | 17 | 46 | 16 | 74 | ||||||||||||||
Acquisition development & construction | 133 | — | — | — | — | ||||||||||||||
Residential mortgage | 10 | — | 2 | 15 | 34 | ||||||||||||||
Consumer | 88 | 48 | 137 | 131 | 97 | ||||||||||||||
Total recoveries | 1,001 | 433 | 410 | 476 | 638 | ||||||||||||||
Net loan charge-offs | (1,288 | ) | (3,023 | ) | (6,221 | ) | (8,815 | ) | (9,066 | ) | |||||||||
Balance, end of period | $ | 70,151 | $ | 72,128 | $ | 77,907 | $ | 82,092 | $ | 86,026 | |||||||||
Asset Quality Data and Ratios | |||||||||||||||||||
Non-performing loans (“NPLs”) non-accrual | $ | 70,416 | $ | 69,060 | $ | 186,357 | $ | 181,745 | $ | 178,626 | |||||||||
NPLs still accruing | 935 | 392 | 856 | 301 | 12,349 | ||||||||||||||
Total NPLs | 71,351 | 69,452 | 187,213 | 182,046 | 190,975 | ||||||||||||||
Other real estate owned | 10,198 | 11,697 | 27,095 | 24,493 | 20,264 | ||||||||||||||
Non-performing assets (“NPAs”) | $ | 81,549 | $ | 81,149 | $ | 214,308 | $ | 206,539 | $ | 211,239 | |||||||||
Loans 30 to 89 days past due | $ | 15,070 | $ | 21,491 | $ | 53,533 | $ | 59,818 | $ | 73,441 | |||||||||
Net charge-offs as a % of average loans (annualized) | 0.05 | % | 0.12 | % | 0.13 | % | 0.18 | % | 0.18 | % | |||||||||
NPLs as a % of total loans | 0.70 | 0.66 | 0.94 | 0.91 | 0.92 | ||||||||||||||
NPAs as a % of total assets | 0.53 | 0.48 | 0.71 | 0.68 | 0.67 | ||||||||||||||
Allowance for loan losses as a % of NPLs | 98.3 | 103.9 | 41.6 | 45.1 | 45.0 | ||||||||||||||
Allowance for loan losses as a % of total loans | 0.69 | 0.69 | 0.39 | 0.41 | 0.42 | ||||||||||||||
Special mention loans | $ | 102,996 | $ | 117,984 | $ | 136,558 | $ | 101,904 | $ | 119,718 | |||||||||
Substandard loans | 97,476 | 104,205 | 232,491 | 245,910 | 251,840 | ||||||||||||||
Doubtful loans | 895 | 795 | 764 | 968 | 856 | ||||||||||||||
1 There were no charge-offs or recoveries on warehouse lending, public sector finance or multi-family loans during the periods presented. | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
March 31, 2018 | June 30, 2018 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Traditional C&I and commercial finance loans | $ | 5,000,470 | $ | 60,873 | 4.94 | % | $ | 5,846,588 | $ | 78,004 | 5.35 | % | |||||||||
Commercial real estate (includes multi-family) | 9,028,849 | 103,281 | 4.64 | 9,100,098 | 107,930 | 4.76 | |||||||||||||||
Acquisition, development and construction | 267,638 | 3,671 | 5.56 | 247,500 | 3,430 | 5.56 | |||||||||||||||
Commercial loans | 14,296,957 | 167,825 | 4.76 | 15,194,186 | 189,364 | 5.00 | |||||||||||||||
Consumer loans | 361,752 | 4,411 | 4.95 | 344,183 | 5,114 | 5.96 | |||||||||||||||
Residential mortgage loans | 4,977,191 | 62,379 | 5.01 | 4,801,595 | 59,775 | 4.98 | |||||||||||||||
Total gross loans 1 | 19,635,900 | 234,615 | 4.85 | 20,339,964 | 254,253 | 5.01 | |||||||||||||||
Securities taxable | 3,997,542 | 27,061 | 2.75 | 4,130,949 | 29,031 | 2.82 | |||||||||||||||
Securities non-taxable | 2,604,633 | 19,382 | 2.98 | 2,620,579 | 19,497 | 2.98 | |||||||||||||||
Interest earning deposits | 305,270 | 828 | 1.10 | 292,862 | 784 | 1.07 | |||||||||||||||
FHLB and Federal Reserve Bank Stock | 290,577 | 3,530 | 4.93 | 373,026 | 5,435 | 5.84 | |||||||||||||||
Total securities and other earning assets | 7,198,022 | 50,801 | 2.86 | 7,417,416 | 54,747 | 2.96 | |||||||||||||||
Total interest earning assets | 26,833,922 | 285,416 | 4.31 | 27,757,380 | 309,000 | 4.47 | |||||||||||||||
Non-interest earning assets | 3,184,367 | 3,237,524 | |||||||||||||||||||
Total assets | $ | 30,018,289 | $ | 30,994,904 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand and savings 2 deposits | $ | 6,859,373 | $ | 7,173 | 0.42 | % | $ | 6,941,727 | $ | 8,400 | 0.49 | % | |||||||||
Money market deposits | 7,393,335 | 10,912 | 0.60 | 7,337,904 | 12,869 | 0.70 | |||||||||||||||
Certificates of deposit | 2,464,360 | 6,121 | 1.01 | 2,528,355 | 7,195 | 1.14 | |||||||||||||||
Total interest bearing deposits | 16,717,068 | 24,206 | 0.59 | 16,807,986 | 28,464 | 0.68 | |||||||||||||||
Senior notes | 278,181 | 2,740 | 3.94 | 278,128 | 2,787 | 4.01 | |||||||||||||||
Other borrowings | 4,146,987 | 17,678 | 1.73 | 4,981,663 | 25,086 | 2.02 | |||||||||||||||
Subordinated notes | 172,735 | 2,352 | 5.45 | 172,791 | 2,353 | 5.45 | |||||||||||||||
Total borrowings | 4,597,903 | 22,770 | 2.01 | 5,432,582 | 30,226 | 2.23 | |||||||||||||||
Total interest bearing liabilities | 21,314,971 | 46,976 | 0.89 | 22,240,568 | 58,690 | 1.06 | |||||||||||||||
Non-interest bearing deposits | 3,971,079 | 3,960,683 | |||||||||||||||||||
Other non-interest bearing liabilities | 488,342 | 487,725 | |||||||||||||||||||
Total liabilities | 25,774,392 | 26,688,976 | |||||||||||||||||||
Stockholders’ equity | 4,243,897 | 4,305,928 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 30,018,289 | $ | 30,994,904 | |||||||||||||||||
Net interest rate spread 3 | 3.42 | % | 3.41 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 5,518,951 | $ | 5,516,812 | |||||||||||||||||
Net interest margin - tax equivalent | 238,440 | 3.60 | % | 250,310 | 3.62 | % | |||||||||||||||
Less tax equivalent adjustment | (4,070 | ) | (4,094 | ) | |||||||||||||||||
Net interest income | $ | 234,370 | $ | 246,216 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 125.9 | % | 124.8 | % |
For the Quarter Ended | |||||||||||||||||||||
June 30, 2017 | June 30, 2018 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Traditional C&I and commercial finance loans | $ | 4,172,795 | $ | 52,580 | 5.05 | % | $ | 5,846,588 | $ | 78,004 | 5.35 | % | |||||||||
Commercial real estate (includes multi-family) | 4,396,281 | 45,930 | 4.19 | 9,100,098 | 107,930 | 4.76 | |||||||||||||||
Acquisition, development and construction | 251,404 | 3,317 | 5.29 | 247,500 | 3,430 | 5.56 | |||||||||||||||
Commercial loans | 8,820,480 | 101,827 | 4.63 | 15,194,186 | 189,364 | 5.00 | |||||||||||||||
Consumer loans | 268,502 | 3,073 | 4.59 | 344,183 | 5,114 | 5.96 | |||||||||||||||
Residential mortgage loans | 697,441 | 6,940 | 3.98 | 4,801,595 | 59,775 | 4.98 | |||||||||||||||
Total gross loans 1 | 9,786,423 | 111,840 | 4.58 | 20,339,964 | 254,253 | 5.01 | |||||||||||||||
Securities taxable | 2,142,168 | 13,113 | 2.46 | 4,130,949 | 29,031 | 2.82 | |||||||||||||||
Securities non-taxable | 1,292,367 | 11,986 | 3.71 | 2,620,579 | 19,497 | 2.98 | |||||||||||||||
Interest earning deposits | 195,004 | 302 | 0.62 | 292,862 | 784 | 1.07 | |||||||||||||||
FHLB and Federal Reserve Bank stock | 146,891 | 1,217 | 3.32 | 373,026 | 5,435 | 5.84 | |||||||||||||||
Total securities and other earning assets | 3,776,430 | 26,618 | 2.83 | 7,417,416 | 54,747 | 2.96 | |||||||||||||||
Total interest earning assets | 13,562,853 | 138,458 | 4.09 | 27,757,380 | 309,000 | 4.47 | |||||||||||||||
Non-interest earning assets | 1,141,940 | 3,237,524 | |||||||||||||||||||
Total assets | $ | 14,704,793 | $ | 30,994,904 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand and savings 2 deposits | $ | 2,789,590 | $ | 3,875 | 0.56 | $ | 6,941,727 | $ | 8,400 | 0.49 | |||||||||||
Money market deposits | 3,725,257 | 5,510 | 0.59 | 7,337,904 | 12,869 | 0.70 | |||||||||||||||
Certificates of deposit | 584,996 | 1,520 | 1.04 | 2,528,355 | 7,195 | 1.14 | |||||||||||||||
Total interest bearing deposits | 7,099,843 | 10,905 | 0.62 | 16,807,986 | 28,464 | 0.68 | |||||||||||||||
Senior notes | 76,580 | 1,142 | 5.98 | 278,128 | 2,787 | 4.01 | |||||||||||||||
Other borrowings | 2,064,840 | 6,608 | 1.28 | 4,981,663 | 25,086 | 2.02 | |||||||||||||||
Subordinated notes | 172,572 | 2,350 | 5.45 | 172,791 | 2,353 | 5.45 | |||||||||||||||
Total borrowings | 2,313,992 | 10,100 | 1.75 | 5,432,582 | 30,226 | 2.23 | |||||||||||||||
Total interest bearing liabilities | 9,413,835 | 21,005 | 0.89 | 22,240,568 | 58,690 | 1.06 | |||||||||||||||
Non-interest bearing deposits | 3,185,506 | 3,960,683 | |||||||||||||||||||
Other non-interest bearing liabilities | 191,519 | 487,725 | |||||||||||||||||||
Total liabilities | 12,790,860 | 26,688,976 | |||||||||||||||||||
Stockholders’ equity | 1,913,933 | 4,305,928 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 14,704,793 | $ | 30,994,904 | |||||||||||||||||
Net interest rate spread 3 | 3.20 | % | 3.41 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 4,149,018 | $ | 5,516,812 | |||||||||||||||||
Net interest margin - tax equivalent | 117,453 | 3.47 | % | 250,310 | 3.62 | % | |||||||||||||||
Less tax equivalent adjustment | (4,195 | ) | (4,094 | ) | |||||||||||||||||
Net interest income | $ | 113,258 | $ | 246,216 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 144.1 | % | 124.8 | % |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 21. | |||||||||||||||||||
As of or for the Quarter Ended | |||||||||||||||||||
6/30/2017 | 9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | |||||||||||||||
The following table shows the reconciliation of stockholders’ equity to tangible common equity and the tangible common equity ratio1: | |||||||||||||||||||
Total assets | $ | 15,376,676 | $ | 16,780,097 | $ | 30,359,541 | $ | 30,468,780 | $ | 31,463,077 | |||||||||
Goodwill and other intangibles | (758,484 | ) | (756,290 | ) | (1,733,082 | ) | (1,727,030 | ) | (1,754,418 | ) | |||||||||
Tangible assets | 14,618,192 | 16,023,807 | 28,626,459 | 28,741,750 | 29,708,659 | ||||||||||||||
Stockholders’ equity | 1,931,383 | 1,971,480 | 4,240,178 | 4,273,755 | 4,352,735 | ||||||||||||||
Preferred stock | — | — | (139,220 | ) | (139,025 | ) | (138,828 | ) | |||||||||||
Goodwill and other intangibles | (758,484 | ) | (756,290 | ) | (1,733,082 | ) | (1,727,030 | ) | (1,754,418 | ) | |||||||||
Tangible common stockholders’ equity | 1,172,899 | 1,215,190 | 2,367,876 | 2,407,700 | 2,459,489 | ||||||||||||||
Common stock outstanding at period end | 135,658,226 | 135,807,544 | 224,782,694 | 225,466,266 | 225,470,254 | ||||||||||||||
Common stockholders’ equity as a % of total assets | 12.56 | % | 11.75 | % | 13.51 | % | 13.57 | % | 13.39 | % | |||||||||
Book value per common share | $ | 14.24 | $ | 14.52 | $ | 18.24 | $ | 18.34 | $ | 18.69 | |||||||||
Tangible common equity as a % of tangible assets | 8.02 | % | 7.58 | % | 8.27 | % | 8.38 | % | 8.28 | % | |||||||||
Tangible book value per common share | $ | 8.65 | $ | 8.95 | $ | 10.53 | $ | 10.68 | $ | 10.91 | |||||||||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity2: | |||||||||||||||||||
Average stockholders’ equity | $ | 1,913,933 | $ | 1,955,252 | $ | 4,235,739 | $ | 4,243,897 | $ | 4,305,928 | |||||||||
Average preferred stock | — | — | (139,343 | ) | (139,151 | ) | (138,958 | ) | |||||||||||
Average goodwill and other intangibles | (759,847 | ) | (757,498 | ) | (1,710,151 | ) | (1,730,952 | ) | (1,757,296 | ) | |||||||||
Average tangible common stockholders’ equity | 1,154,086 | 1,197,754 | 2,386,245 | 2,373,794 | 2,409,674 | ||||||||||||||
Net income (loss) available to common | 42,400 | 44,852 | (35,281 | ) | 96,873 | 112,245 | |||||||||||||
Net income (loss), if annualized | 170,066 | 177,945 | (139,974 | ) | 392,874 | 450,213 | |||||||||||||
Reported return on avg tangible common equity | 14.74 | % | 14.86 | % | (5.87 | )% | 16.55 | % | 18.68 | % | |||||||||
Adjusted net income (see reconciliation on page 18) | $ | 44,393 | $ | 47,865 | $ | 87,171 | $ | 100,880 | $ | 112,868 | |||||||||
Annualized adjusted net income | 178,060 | 189,899 | 345,841 | 409,124 | 452,712 | ||||||||||||||
Adjusted return on average tangible common equity | 15.43 | % | 15.85 | % | 14.49 | % | 17.24 | % | 18.79 | % | |||||||||
The following table shows the reconciliation of reported return on average tangible assets and adjusted return on average tangible assets3: | |||||||||||||||||||
Average assets | $ | 14,704,793 | $ | 15,661,514 | $ | 29,277,502 | $ | 30,018,289 | $ | 30,994,904 | |||||||||
Average goodwill and other intangibles | (759,847 | ) | (757,498 | ) | (1,710,151 | ) | (1,730,952 | ) | (1,757,296 | ) | |||||||||
Average tangible assets | 13,944,946 | 14,904,016 | 27,567,351 | 28,287,337 | 29,237,608 | ||||||||||||||
Net income (loss) | 42,400 | 44,852 | (35,281 | ) | 96,873 | 112,245 | |||||||||||||
Net income (loss), if annualized | 170,066 | 177,945 | (139,974 | ) | 392,874 | 450,213 | |||||||||||||
Reported return on average tangible assets | 1.22 | % | 1.19 | % | (0.51 | )% | 1.39 | % | 1.54 | % | |||||||||
Adjusted net income (see reconciliation on page 18) | $ | 44,393 | $ | 47,865 | $ | 87,171 | $ | 100,880 | $ | 112,868 | |||||||||
Annualized adjusted net income | 178,060 | 189,899 | 345,841 | 409,124 | 452,712 | ||||||||||||||
Adjusted return on average tangible assets | 1.28 | % | 1.27 | % | 1.25 | % | 1.45 | % | 1.55 | % | |||||||||
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 21. | ||||||||||||||||||||
As of and for the Quarter Ended | ||||||||||||||||||||
6/30/2017 | 9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | ||||||||||||||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio4: | ||||||||||||||||||||
Net interest income | $ | 113,258 | $ | 120,073 | $ | 234,024 | $ | 234,370 | $ | 246,216 | ||||||||||
Non-interest income | 13,618 | 13,988 | 23,762 | 18,707 | 37,868 | |||||||||||||||
Total net revenue | 126,876 | 134,061 | 257,786 | 253,077 | 284,084 | |||||||||||||||
Tax equivalent adjustment on securities | 4,195 | 4,599 | 7,158 | 4,070 | 4,094 | |||||||||||||||
Net loss on sale of securities | 230 | 21 | 70 | 5,421 | 425 | |||||||||||||||
Net (gain) on sale of Lake Success facility | — | — | — | — | (11,797 | ) | ||||||||||||||
Adjusted total net revenue | 131,301 | 138,681 | 265,014 | 262,568 | 276,806 | |||||||||||||||
Non-interest expense | 59,657 | 62,617 | 250,746 | 111,749 | 124,928 | |||||||||||||||
Merger-related expense | (1,766 | ) | (4,109 | ) | (30,230 | ) | — | — | ||||||||||||
Charge for asset write-downs, systems integration, retention and severance | (603 | ) | — | (104,506 | ) | — | (13,132 | ) | ||||||||||||
Amortization of intangible assets | (2,187 | ) | (2,166 | ) | (6,426 | ) | (6,052 | ) | (5,865 | ) | ||||||||||
Adjusted non-interest expense | 55,101 | 56,342 | 109,584 | 105,697 | 105,931 | |||||||||||||||
Reported operating efficiency ratio | 47.0 | % | 46.7 | % | 97.3 | % | 44.2 | % | 44.0 | % | ||||||||||
Adjusted operating efficiency ratio | 42.0 | 40.6 | 41.4 | 40.3 | 38.3 | |||||||||||||||
The following table shows the reconciliation of reported net income (GAAP) and adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share5: | ||||||||||||||||||||
Income (loss) before income tax expense | $ | 62,719 | $ | 66,444 | $ | (4,960 | ) | $ | 128,328 | $ | 146,156 | |||||||||
Income tax expense | 20,319 | 21,592 | 28,319 | 29,456 | 31,915 | |||||||||||||||
Net income (loss) (GAAP) | 42,400 | 44,852 | (33,279 | ) | 98,872 | 114,241 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Net loss on sale of securities | 230 | 21 | 70 | 5,421 | 425 | |||||||||||||||
Net (gain) on sale of Lake Success facility | — | — | — | — | (11,797 | ) | ||||||||||||||
Merger-related expense | 1,766 | 4,109 | 30,230 | — | — | |||||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 603 | — | 104,506 | — | 13,132 | |||||||||||||||
Amortization of non-compete agreements and acquired customer list intangible assets | 354 | 333 | 333 | 295 | 295 | |||||||||||||||
Total pre-tax adjustments | 2,953 | 4,463 | 135,139 | 5,716 | 2,055 | |||||||||||||||
Adjusted pre-tax income | 65,672 | 70,907 | 130,179 | 134,044 | 148,211 | |||||||||||||||
Adjusted income tax expense | (21,279 | ) | (23,042 | ) | (41,006 | ) | (31,165 | ) | (33,347 | ) | ||||||||||
Adjusted net income (non-GAAP) | 44,393 | 47,865 | 89,173 | 102,879 | 114,864 | |||||||||||||||
Preferred stock dividend | — | — | 2,002 | 1,999 | 1,996 | |||||||||||||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 44,393 | $ | 47,865 | $ | 87,171 | $ | 100,880 | $ | 112,868 | ||||||||||
Weighted average diluted shares | 135,922,897 | 135,950,160 | 224,055,991 | 225,264,147 | 225,621,856 | |||||||||||||||
Reported diluted EPS (GAAP) | $ | 0.31 | $ | 0.33 | $ | (0.16 | ) | $ | 0.43 | $ | 0.50 | |||||||||
Adjusted diluted EPS (non-GAAP) | 0.33 | 0.35 | 0.39 | 0.45 | 0.50 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 21. | ||||||||
For the Six Months Ended June 30, | ||||||||
2017 | 2018 | |||||||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share (non-GAAP)5: | ||||||||
Income before income tax expense | $ | 119,495 | $ | 274,484 | ||||
Income tax expense | 38,028 | 61,371 | ||||||
Net income (GAAP) | 81,467 | 213,113 | ||||||
Adjustments: | ||||||||
Net loss on sale of securities | 253 | 5,846 | ||||||
Net (gain) on sale of Lake Success facility | — | (11,797 | ) | |||||
Merger-related expense | 4,893 | — | ||||||
Charge for asset write-downs, systems integration, retention and severance | 603 | 13,132 | ||||||
Amortization of non-compete agreements and acquired customer list intangible assets | 750 | 589 | ||||||
Total pre-tax adjustments | 6,499 | 7,770 | ||||||
Adjusted pre-tax income | 125,994 | 282,254 | ||||||
Adjusted income tax expense | (40,140 | ) | (63,508 | ) | ||||
Adjusted net income (non-GAAP) | $ | 85,854 | $ | 218,746 | ||||
Preferred stock dividend | — | 3,995 | ||||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 85,854 | $ | 214,751 | ||||
Weighted average diluted shares | 135,867,861 | 225,444,579 | ||||||
Diluted EPS as reported (GAAP) | $ | 0.60 | $ | 0.93 | ||||
Adjusted diluted EPS (non-GAAP) | 0.63 | 0.95 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend below. | ||||||||
For the Six Months Ended June 30, | ||||||||
2017 | 2018 | |||||||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity2: | ||||||||
Average stockholders’ equity | $ | 1,891,633 | $ | 4,275,097 | ||||
Average preferred stock | — | (139,054 | ) | |||||
Average goodwill and other intangibles | (760,955 | ) | (1,744,197 | ) | ||||
Average tangible common stockholders’ equity | 1,130,678 | 2,391,846 | ||||||
Net income available to common stockholders | $ | 81,467 | $ | 209,118 | ||||
Net income available to common stockholders, if annualized | 164,284 | 421,702 | ||||||
Reported return on average tangible common equity | 14.53 | % | 17.63 | % | ||||
Adjusted net income available to common stockholders (see reconciliation on page 19) | $ | 85,854 | $ | 214,751 | ||||
Adjusted net income available to common stockholders, if annualized | 173,131 | 433,061 | ||||||
Adjusted return on average tangible common equity | 15.31 | % | 18.11 | % | ||||
The following table shows the reconciliation of reported return on avg tangible assets and adjusted return on avg tangible assets3: | ||||||||
Average assets | $ | 14,366,494 | $ | 30,370,252 | ||||
Average goodwill and other intangibles | (760,955 | ) | (1,744,197 | ) | ||||
Average tangible assets | 13,605,539 | 28,626,055 | ||||||
Net income available to common stockholders | 81,467 | 209,118 | ||||||
Net income available to common stockholders, if annualized | 164,284 | 421,702 | ||||||
Reported return on average tangible assets | 1.21 | % | 1.47 | % | ||||
Adjusted net income available to common stockholders (see reconciliation on page 19) | $ | 85,854 | $ | 214,751 | ||||
Adjusted net income available to common stockholders, if annualized | 173,131 | 433,061 | ||||||
Adjusted return on average tangible assets | 1.27 | % | 1.51 | % | ||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio4: | ||||||||
Net interest income | $ | 222,048 | $ | 480,584 | ||||
Non-interest income | 26,454 | 56,575 | ||||||
Total net revenues | 248,502 | 537,159 | ||||||
Tax equivalent adjustment on securities | 8,297 | 8,165 | ||||||
Net loss on sale of securities | 253 | 5,846 | ||||||
Net (gain) on sale of Lake Success facility | — | (11,797 | ) | |||||
Adjusted total net revenue | 257,052 | 539,373 | ||||||
Non-interest expense | 120,007 | 236,675 | ||||||
Merger-related expense | (4,893 | ) | — | |||||
Charge for asset write-downs, retention and severance | (603 | ) | (13,132 | ) | ||||
Amortization of intangible assets | (4,416 | ) | (11,917 | ) | ||||
Adjusted non-interest expense | $ | 110,095 | $ | 211,626 | ||||
Reported operating efficiency ratio | 48.3 | % | 44.1 | % | ||||
Adjusted operating efficiency ratio | 42.8 | % | 39.2 | % |