0001380846-15-000017.txt : 20150723 0001380846-15-000017.hdr.sgml : 20150723 20150722173357 ACCESSION NUMBER: 0001380846-15-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20150722 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150723 DATE AS OF CHANGE: 20150722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TriState Capital Holdings, Inc. CENTRAL INDEX KEY: 0001380846 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 204929029 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35913 FILM NUMBER: 151000727 BUSINESS ADDRESS: STREET 1: ONE OXFORD CENTRE STREET 2: 301 GRANT STREET, SUITE 2700 CITY: PITTSBURGH STATE: pa ZIP: 15219 BUSINESS PHONE: (412) 304-0304 MAIL ADDRESS: STREET 1: ONE OXFORD CENTRE STREET 2: 301 GRANT STREET, SUITE 2700 CITY: PITTSBURGH STATE: pa ZIP: 15219 FORMER COMPANY: FORMER CONFORMED NAME: TriState Capital Holdings Inc DATE OF NAME CHANGE: 20100617 FORMER COMPANY: FORMER CONFORMED NAME: Tristate CapitalHoldings Inc DATE OF NAME CHANGE: 20061113 8-K 1 tsc-06302015x8k.htm 8-K TSC-06.30.2015-8K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________

FORM 8-K
_________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2015

_________
TRISTATE CAPITAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
_________
Pennsylvania
 
001-35913
 
20-4929029
(State or other jurisdiction of incorporation or organization)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
One Oxford Centre
301 Grant Street, Suite 2700
Pittsburgh, Pennsylvania 15219
(Address of principal executive offices)
(Zip Code)
(412) 304-0304
(Registrant's telephone number, including area code)
_________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



1


Item 2.02.    Results of Operations and Financial Condition.
On July 22, 2015, TriState Capital Holdings, Inc. issued a press release which disclosed results of operations for the three and six months ended June 30, 2015. A copy of the press release is included as Exhibit 99 to this report.
The information in this report, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.


Item 5.02.    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On July 22, 2015, James H. Graves notified the Board of TriState Capital Holdings, Inc. of his decision to resign as an independent director of the Company and its TriState Capital Bank subsidiary in order to devote his time to other business opportunities. His decision to resign did not involve any disagreement with the company, its management or its Board of Directors.


Item 9.01.    Financial Statements and Exhibits.
Exhibit No.
Description
99
Press release dated July 22, 2015, filed herewith.

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


TRISTATE CAPITAL HOLDINGS, INC.
 
 
By
/s/ James F. Getz
 
James F. Getz
 
Chairman and Chief Executive Officer
 
 

Date: July 22, 2015


3


EXHIBIT INDEX


Exhibit No.
Description
99
Press release dated July 22, 2015, filed herewith.


4
 EX-99 2 tsc-pressrelease7x22x2015.htm EXHIBIT 99 TSC-Press Release 7-22-2015
EXHIBIT 99



FOR IMMEDIATE RELEASE


TRISTATE CAPITAL REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS

PITTSBURGH, July 22, 2015 - TriState Capital Holdings, Inc. (NASDAQ: TSC) today reported record net income in the second quarter of 2015, driven by increases in non-interest income and net interest income, double-digit loan growth and superior credit metrics.

Net income for the parent company of TriState Capital Bank and Chartwell Investment Partners grew to $5.7 million in the second quarter of 2015, compared to $5.1 million in the first quarter and $514,000 in the second quarter of 2014. Net income per diluted share increased to $0.20 in the second quarter of 2015, compared to $0.18 in the first quarter and $0.02 in the second quarter of 2014.

“All three of TriState Capital’s business drivers, consisting of private banking, middle-market commercial banking and investment management, contributed to our record net income and pre-tax earnings in the second quarter,” said Chief Executive Officer James F. Getz. “In particular, we’re pleased to deliver higher net interest income fueled by continued double-digit loan growth, even as we further enhance asset quality and maintain a balance sheet that is very well positioned to profit from a rising interest-rate environment.”

SECOND QUARTER 2015 HIGHLIGHTS
•
Pre-tax earnings of $8.5 million and net income of $5.7 million reached record levels
•
Net interest income increased to $16.6 million, as loans grew 3.1% during the quarter and 15.9% from the year prior
•
Total revenue increased to $26.2 million, up 2.9% from the first quarter and 6.1% from the year-ago period
•
Total adverse-rated credits declined 2.9% during the quarter and 30.2% from the year prior
•
NPAs improved by 12.9% during the quarter and 9.2% from the year prior, representing 0.89% of assets at June 30
•
Provision expense declined to 0.03% of average loans, annualized, from 0.15% in the first quarter

TriState Capital’s loan growth continues to generate strong net interest income (NII) that, by design, is outpacing margin compression. NII was $16.6 million in the second quarter of 2015, $16.5 million in the first quarter and $16.0 million in the second quarter of 2014.

Provision expense totaled $185,000, or 0.03% of average loans, annualized, for the second quarter of 2015. For the linked quarter, provision expense was $925,000, or 0.15% of average loans, annualized. In the year ago quarter, provision expense was $9.1 million, or 1.72% of average loans, annualized.

Second quarter 2015 non-interest income was $9.6 million, compared to $9.1 million in the linked and year-ago quarters. Non-interest income represented 36.7% of total revenue in the second quarter of 2015. Non-interest income is largely comprised of Chartwell investment management fees of $7.5 million in the current quarter, $7.7 million in the linked quarter and $7.5 million in the year-ago quarter. Second quarter 2015 other non-interest income included higher fees from commercial borrowers’ use of interest rate swaps in the period to lock in fixed rates.

In the second quarter of 2015, TriState Capital’s total revenue was $26.2 million, increasing from $25.5 million in the linked quarter and $24.7 million in the year-ago quarter.

Second quarter 2015 non-interest expenses were $17.6 million, or 2.39% of average assets on an annualized basis, compared to $17.1 million, or 2.41%, in the linked quarter and $15.5 million, or 2.34%, in the prior year quarter. The year-over-year increase in expenses was primarily due to higher incentive-compensation accruals reflecting the bank’s strong performance in the first half of 2015. The second quarter 2015 efficiency ratio for the bank was 60.78%, compared to 61.41% in the linked quarter and 56.89% in the year-ago quarter.


1
EXHIBIT 99

BALANCE SHEET GROWTH
Loans totaled $2.55 billion at June 30, 2015, increasing 3.1%, or 12.5% annualized, from March 31. Total loans grew 15.9% over balances at June 30, 2014. Private banking channel loans totaled $1.11 billion, growing 4.6% from the end of the linked quarter and 27.2% from the end of the year-ago quarter. Commercial real estate (CRE) loans totaled $808.9 million, growing 7.2% from the end of the linked quarter and 27.8% from the end of the year-ago quarter. Commercial and industrial (C&I) loan balances were $631.1 million at June 30, 2015, decreasing 4.1% from the end of the linked quarter and 9.2% from one year prior.

Deposits grew by 4.5% during the second quarter to $2.55 billion at June 30, 2015, while deposit funding costs increased 2 basis points from the linked quarter. Compared to the year-ago quarter, deposits grew 14.6% at period end, while deposit funding costs increased 2 basis points.

TriState Capital remains very well positioned to profit from a rising interest-rate environment, and the bank continues to manage a highly asset-sensitive balance sheet. At June 30, 2015, 83% of TriState Capital’s loans and 59% of its securities portfolio were floating rate. In addition, 34% of deposits were fixed-rate time deposits. The duration of the investment portfolio was 1.9 as of June 30, 2015.

ASSET QUALITY
TriState Capital experienced net recoveries on loans previously charged off totaling $17,000 in the second quarter of 2015 and $7,000 in the linked quarter. Net charge offs for the second quarter of 2014 were $5.0 million, of which $4.6 million was related to a single non-performing C&I loan. Non-performing assets (NPAs) declined by $3.9 million, or 12.9%, to $26.7 million during the second quarter of 2015. NPAs represented 0.89% of total assets at June 30, 2015, improving from 1.05% at March 31, 2015 and 1.08% at June 30, 2014.

Adverse-rated credits declined 2.9% during the second quarter and 30.2% from June 30, 2014. Adverse-rated credits represented 2.2% of total loans at the end of the second quarter of 2015, 2.4% at March 31, 2015 and 3.7% at June 30, 2014.

The company’s allowance for loan losses reflects its growing portfolio of private banking channel margin loans secured by marketable securities, which require lower provision based on their lower risk profile. The allowance for loan losses represented 0.84% of total loans at June 30, 2015, compared to 0.86% at March 31, 2015 and 1.04% at March 31, 2014.

INVESTMENT MANAGEMENT
Chartwell’s assets under management (AUM) were $8.1 billion at the end of the first and second quarters of 2015 and $7.9 billion at June 30, 2014. Second quarter AUM reflects $146 million in new business and new flows from existing accounts, offset by market depreciation of $38 million and outflows of $88 million. The weighted average fee rate was 0.37% for each of the first and second quarters of 2015.

Chartwell investment management fees were $7.5 million in the second quarter of 2015, compared to $7.7 million in the linked quarter and $7.5 million in the year-ago quarter. Continued strong performance reflects net inflows and returns relative to benchmarks across Chartwell’s investment disciplines.

Chartwell segment net income totaled $1.0 million for the second quarter of 2015, comprising 18% of TriState Capital Holdings, Inc.’s consolidated net income.

CAPITAL STRENGTH AND FLEXIBILITY
TriState Capital’s earnings in the quarter funded superior loan growth in the period, while the company maintained capital ratios that exceed the highest required regulatory benchmark levels. As of June 30, 2015, TriState Capital Holdings reported ratios of 14.45% for total risk-based capital, 12.23% for tier 1 risk-based capital, 12.23% for common equity tier 1 risk-based capital and 9.42% for tier 1 leverage.

CONFERENCE CALL
As previously announced, TriState Capital will hold a conference call tomorrow to review its financial results and operating performance.


2
EXHIBIT 99

The live conference call on July 23 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link http://dpregister.com/10068347 to receive a special dial-in number and PIN. Telephone participants who are unable to pre-register should dial in at least 10 minutes prior to the call and request the “TriState Capital Holdings call.” The call may be accessed by dialing 888-339-0757 from the United States, 855-669-9657 from Canada or 412-902-4194 from other international locations.

A replay of the call will be available approximately one hour after the end of the conference call through July 31. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 412-317-0088 from other locations and entering the conference number 10068347.

ABOUT TRISTATE CAPITAL
TriState Capital Holdings, Inc. (NASDAQ: TSC) is a bank holding company headquartered in Pittsburgh, Pa., providing commercial banking, private banking and investment management services to middle-market companies, institutional clients and high-net-worth individuals. Its TriState Capital Bank subsidiary has $2.9 billion in assets, as of June 30, 2015, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Princeton, N.J., and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. Its Chartwell Investment Partners subsidiary has $8.1 billion in assets under management, as of June 30, 2015, and serves institutional clients and TriState Capital’s financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD LOOKING STATEMENTS
This press release includes “forward-looking” statements related to TriState Capital that can generally be identified as describing TriState Capital’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect TriState Capital’s future results, please see the company’s most-recent annual and quarterly reports filed on Form 10-K and Form 10-Q.

NON-GAAP FINANCIAL DISCLOSURES
This news release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Although TriState Capital believes non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Where non-GAAP disclosures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and accompanying tables.

###

MEDIA CONTACTS
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)
jack@hornercom.com

INVESTOR RELATIONS CONTACT
TriState Capital Holdings, Inc.
Brian Fetterolf
412-304-0451
investorrelations@tscbank.com


3
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
 
As of and For the 
 Three Months Ended
 
As of and For the 
 Six Months Ended
(Dollars in thousands)
June 30,
March 31,
June 30,
 
June 30,
June 30,
 
2015
2015
2014
 
2015
2014
Period-end balance sheet data:
 
 
 
 
 
 
Cash and cash equivalents
$
100,235

$
114,554

$
192,523

 
$
100,235

$
192,523

Total investment securities
219,662

189,650

203,440

 
219,662

203,440

Loans held-for-sale
4,084

—

—

 
4,084

—

Loans held-for-investment
2,554,343

2,477,130

2,204,257

 
2,554,343

2,204,257

Allowance for loan losses
(21,407
)
(21,205
)
(22,822
)
 
(21,407
)
(22,822
)
Loans held-for-investment, net
2,532,936

2,455,925

2,181,435

 
2,532,936

2,181,435

Goodwill and other intangibles, net
51,595

51,985

53,108

 
51,595

53,108

Other assets
108,649

103,997

102,415

 
108,649

102,415

Total assets
$
3,017,161

$
2,916,111

$
2,732,921

 
$
3,017,161

$
2,732,921

 
 
 
 
 
 
 
Total deposits
$
2,550,695

$
2,441,956

$
2,225,770

 
$
2,550,695

$
2,225,770

Borrowings
125,000

125,000

155,000

 
125,000

155,000

Other liabilities
27,068

40,986

51,168

 
27,068

51,168

Total liabilities
2,702,763

2,607,942

2,431,938

 
2,702,763

2,431,938

 
 
 
 
 
 
 
Total shareholders' equity
314,398

308,169

300,983

 
314,398

300,983

 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
3,017,161

$
2,916,111

$
2,732,921

 
$
3,017,161

$
2,732,921

 
 
 
 
 
 
 
Income statement data:
 
 
 
 
 
 
Interest income
$
20,426

$
19,995

$
18,991

 
$
40,421

$
37,299

Interest expense
3,808

3,539

2,953

 
7,347

5,399

Net interest income
16,618

16,456

16,038

 
33,074

31,900

Provision for loan losses
185

925

9,109

 
1,110

9,717

Net interest income after provision for loan losses
16,433

15,531

6,929

 
31,964

22,183

Non-interest income:
 
 
 
 
 
 
Investment management fees
7,514

7,655

7,509

 
15,169

9,963

Net gain on the sale of investment securities available-for-sale
—

17

414

 
17

1,428

Other non-interest income
2,117

1,386

1,198

 
3,503

2,210

Total non-interest income
9,631

9,058

9,121

 
18,689

13,601

Non-interest expense:
 
 
 
 
 
 
Intangible amortization expense
390

389

390

 
779

520

Other non-interest expense
17,192

16,713

15,094

 
33,905

27,756

Total non-interest expense
17,582

17,102

15,484

 
34,684

28,276

Income before tax
8,482

7,487

566

 
15,969

7,508

Income tax expense
2,754

2,431

52

 
5,185

2,378

Net income
$
5,728

$
5,056

$
514

 
$
10,784

$
5,130



4
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
 
As of and For the 
 Three Months Ended
 
As of and For the 
 Six Months Ended
(Dollars in thousands, except per share data)
June 30,
March 31,
June 30,
 
June 30,
June 30,
 
2015
2015
2014
 
2015
2014
Per share and share data:
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
Basic
$
0.21

$
0.18

$
0.02

 
$
0.39

$
0.18

Diluted
$
0.20

$
0.18

$
0.02

 
$
0.38

$
0.18

Book value per common share
$
11.23

$
11.00

$
10.48

 
$
11.23

$
10.48

Tangible book value per common share (1)
$
9.39

$
9.15

$
8.63

 
$
9.39

$
8.63

Common shares outstanding, at end of period
28,000,695

28,008,462

28,712,779

 
28,000,695

28,712,779

Average common shares outstanding:
 
 
 
 
 
 
Basic
27,718,226

27,891,931

28,693,741

 
27,804,599

28,692,019

Diluted
28,184,048

27,953,744

29,196,897

 
28,176,510

29,190,482

 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
Return on average assets (2)
0.78
%
0.71
%
0.08
%
 
0.75
%
0.41
%
Return on average equity (2)
7.36
%
6.66
%
0.68
%
 
7.01
%
3.45
%
Net interest margin (2) (3)
2.38
%
2.44
%
2.55
%
 
2.41
%
2.69
%
Bank efficiency ratio (1)
60.78
%
61.41
%
56.89
%
 
61.09
%
60.63
%
Efficiency ratio (1)
66.98
%
67.07
%
62.57
%
 
67.03
%
64.16
%
Efficiency ratio, as adjusted (1)
65.50
%
65.55
%
61.00
%
 
65.52
%
62.88
%
Non-interest expense to average assets (2)
2.39
%
2.41
%
2.34
%
 
2.40
%
2.28
%
 
 
 
 
 
 
 
Asset quality:
 
 
 
 
 
 
Non-performing loans
$
24,978

$
28,926

$
28,025

 
$
24,978

$
28,025

Non-performing assets
$
26,744

$
30,692

$
29,438

 
$
26,744

$
29,438

Other real estate owned
$
1,766

$
1,766

$
1,413

 
$
1,766

$
1,413

Non-performing assets to total assets
0.89
%
1.05
%
1.08
%
 
0.89
%
1.08
%
Allowance for loan losses to loans
0.84
%
0.86
%
1.04
%
 
0.84
%
1.04
%
Allowance for loan losses to non-performing loans
85.70
%
73.31
%
81.43
%
 
85.70
%
81.43
%
Net charge-offs (recoveries)
$
(17
)
$
(7
)
$
5,039

 
$
(24
)
$
5,891

Net charge-offs (recoveries) to average total loans (2)
—
%
—
%
0.95
%
 
—
%
0.60
%
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
Total revenue (1)
$
26,249

$
25,497

$
24,745

 
$
51,746

$
44,073

Pre-tax, pre-provision net revenue (1)
$
8,667

$
8,395

$
9,261

 
$
17,062

$
15,797

 
 
 
 
 
 
 
Capital ratios:
 
 
 
 
 
 
Tangible equity to tangible assets (1)
8.86
%
8.94
%
9.25
%
 
8.86
%
9.25
%
Tier 1 leverage ratio
9.42
%
9.42
%
9.52
%
 
9.42
%
9.52
%
Common equity tier 1 risk-based capital ratio
12.23
%
12.13
%
N/A

 
12.23
%
N/A

Tier 1 risk-based capital ratio
12.23
%
12.13
%
9.77
%
 
12.23
%
9.77
%
Total risk-based capital ratio
14.45
%
14.39
%
12.06
%
 
14.45
%
12.06
%
 
 
 
 
 
 
 
Assets under management
$
8,124,000

$
8,104,000

$
7,888,000

 
$
8,124,000

$
7,888,000


(1) 
These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures.
(2) 
Ratios are annualized.
(3) 
Net interest margin is calculated on a fully taxable equivalent basis.

5
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
AVERAGES AND YIELDS (UNAUDITED)
 
Three Months Ended
 
June 30, 2015
 
March 31, 2015
 
June 30, 2014
(Dollars in thousands)
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Interest-earning deposits
$
102,353

$
87

0.34
%
 
$
118,761

$
102

0.35
%
 
$
214,268

$
173

0.32
%
Federal funds sold
6,420

2

0.12
%
 
5,807

1

0.07
%
 
7,911

1

0.05
%
Investment securities available-for-sale
153,983

465

1.21
%
 
161,484

488

1.23
%
 
158,987

463

1.17
%
Investment securities held-to-maturity
40,051

384

3.85
%
 
35,744

352

3.99
%
 
25,499

219

3.44
%
Total loans
2,505,646

19,551

3.13
%
 
2,425,211

19,110

3.20
%
 
2,129,381

18,194

3.43
%
Total interest-earning assets
2,808,453

20,489

2.93
%
 
2,747,007

20,053

2.96
%
 
2,536,046

19,050

3.01
%
Other assets
136,861

 
 
 
133,204

 
 
 
122,878

 
 
Total assets
$
2,945,314

 
 
 
$
2,880,211

 
 
 
$
2,658,924

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking accounts
$
98,183

$
99

0.40
%
 
$
115,543

$
120

0.42
%
 
$
59,805

$
27

0.18
%
Money market deposit accounts
1,352,153

1,336

0.40
%
 
1,259,148

1,220

0.39
%
 
1,104,147

1,075

0.39
%
Time deposits (excluding CDARS®)
459,546

1,089

0.95
%
 
442,402

987

0.90
%
 
497,778

1,035

0.83
%
CDARS® time deposits
441,092

652

0.59
%
 
422,955

565

0.54
%
 
421,555

555

0.53
%
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
FHLB borrowing
79,176

78

0.40
%
 
100,389

93

0.38
%
 
105,714

102

0.39
%
Subordinated notes payable
35,000

554

6.35
%
 
35,000

554

6.42
%
 
9,615

159

6.63
%
Total interest-bearing liabilities
2,465,150

3,808

0.62
%
 
2,375,437

3,539

0.60
%
 
2,198,614

2,953

0.54
%
Noninterest-bearing deposits
137,647

 
 
 
161,850

 
 
 
125,633

 
 
Other liabilities
30,304

 
 
 
35,147

 
 
 
31,960

 
 
Shareholders' equity
312,213

 
 
 
307,777

 
 
 
302,717

 
 
Total liabilities and shareholders' equity
$
2,945,314

 
 
 
$
2,880,211

 
 
 
$
2,658,924

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
16,681

 
 
 
$
16,514

 
 
 
$
16,097

 
Net interest spread
 
 
2.31
%
 
 
 
2.36
%
 
 
 
2.47
%
Net interest margin (1)
 
 
2.38
%
 
 
 
2.44
%
 
 
 
2.55
%

(1) 
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.

6
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
AVERAGES AND YIELDS (UNAUDITED)
 
Six Months Ended June 30,
 
2015
 
2014
(Dollars in thousands)
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
Interest-earning deposits
$
110,512

$
189

0.34
%
 
$
198,116

$
323

0.33
%
Federal funds sold
6,115

3

0.10
%
 
7,740

2

0.05
%
Investment securities available-for-sale
157,713

953

1.22
%
 
173,354

1,126

1.31
%
Investment securities held-to-maturity
37,909

736

3.92
%
 
25,377

437

3.47
%
Total loans
2,465,650

38,661

3.16
%
 
1,994,226

35,529

3.59
%
Total interest-earning assets
2,777,899

40,542

2.94
%
 
2,398,813

37,417

3.15
%
Other assets
135,043

 
 
 
98,202

 
 
Total assets
$
2,912,942

 
 
 
$
2,497,015

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
Interest-bearing checking accounts
$
106,815

219

0.41
%
 
$
42,054

$
33

0.16
%
Money market deposit accounts
1,305,908

2,556

0.39
%
 
1,033,444

1,955

0.38
%
Time deposits (excluding CDARS®)
451,021

2,076

0.93
%
 
482,162

2,022

0.85
%
CDARS® time deposits
432,074

1,217

0.57
%
 
420,866

1,107

0.53
%
Borrowings:
 
 
 
 
 
 
 
FHLB borrowing
89,724

172

0.39
%
 
63,204

123

0.39
%
Subordinated notes payable
35,000

1,107

6.38
%
 
4,834

159

6.63
%
Total interest-bearing liabilities
2,420,542

7,347

0.61
%
 
2,046,564

5,399

0.53
%
Noninterest-bearing deposits
149,681

 
 
 
125,702

 
 
Other liabilities
32,712

 
 
 
24,484

 
 
Shareholders' equity
310,007

 
 
 
300,265

 
 
Total liabilities and shareholders' equity
$
2,912,942

 
 
 
$
2,497,015

 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
33,195

 
 
 
$
32,018

 
Net interest spread
 
 
2.33
%
 
 
 
2.62
%
Net interest margin (1)
 
 
2.41
%
 
 
 
2.69
%

(1) 
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.


TRISTATE CAPITAL HOLDINGS, INC.
LOAN COMPOSITION (UNAUDITED)
 
June 30, 2015
 
March 31, 2015
 
June 30, 2014
(Dollars in thousands)
Loan
Balance
Percent of
Total Loans
 
Loan
Balance
Percent of
Total Loans
 
Loan
Balance
Percent of
Total Loans
Private banking channel loans
$
1,114,342

43.6
%
 
$
1,064,847

43.0
%
 
$
876,206

39.8
%
Middle-market banking channel loans:
 
 
 
 
 
 
 
 
Commercial and industrial
631,122

24.7
%
 
657,894

26.6
%
 
695,313

31.5
%
Commercial real estate
808,879

31.7
%
 
754,389

30.4
%
 
632,738

28.7
%
Total middle-market banking channel loans
1,440,001

56.4
%
 
1,412,283

57.0
%
 
1,328,051

60.2
%
Loans held-for-investment
$
2,554,343

100.0
%
 
$
2,477,130

100.0
%
 
$
2,204,257

100.0
%


7
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
 
 
 
Interest income
$
20,374

$
—

$
52

$
20,426

 
$
18,991

$
—

$
—

$
18,991

Interest expense
3,259

—

549

3,808

 
2,824

—

129

2,953

Net interest income (loss)
17,115

—

(497
)
16,618

 
16,167

—

(129
)
16,038

Provision for loan losses
185

—

—

185

 
9,109

—

—

9,109

Net interest income (loss) after provision for loan losses
16,930

—

(497
)
16,433

 
7,058

—

(129
)
6,929

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

7,556

(42
)
7,514

 
—

7,560

(51
)
7,509

Net gain on the sale of investment securities available-for-sale
—

—

—

—

 
414

—

—

414

Other non-interest income
2,117

—

—

2,117

 
1,157

41

—

1,198

Total non-interest income
2,117

7,556

(42
)
9,631

 
1,571

7,601

(51
)
9,121

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

390

—

390

 
—

390

—

390

Other non-interest expense
11,690

5,497

5

17,192

 
9,856

5,237

1

15,094

Total non-interest expense
11,690

5,887

5

17,582

 
9,856

5,627

1

15,484

Income (loss) before tax
7,357

1,669

(544
)
8,482

 
(1,227
)
1,974

(181
)
566

Income tax expense (benefit)
2,291

633

(170
)
2,754

 
(727
)
832

(53
)
52

Net income (loss)
$
5,066

$
1,036

$
(374
)
$
5,728

 
$
(500
)
$
1,142

$
(128
)
$
514


 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
 
 
 
Interest income
$
40,315

$
—

$
106

$
40,421

 
$
37,299

$
—

$
—

$
37,299

Interest expense
6,259

—

1,088

7,347

 
5,327

—

72

5,399

Net interest income (loss)
34,056

—

(982
)
33,074

 
31,972

—

(72
)
31,900

Provision for loan losses
1,110

—

—

1,110

 
9,717

—

—

9,717

Net interest income (loss) after provision for loan losses
32,946

—

(982
)
31,964

 
22,255

—

(72
)
22,183

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

15,258

(89
)
15,169

 
—

10,014

(51
)
9,963

Net gain on the sale of investment securities available-for-sale
17

—

—

17

 
1,428

—

—

1,428

Other non-interest income
3,502

1

—

3,503

 
2,169

41

—

2,210

Total non-interest income
3,519

15,259

(89
)
18,689

 
3,597

10,055

(51
)
13,601

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

779

—

779

 
—

520

—

520

Other non-interest expense
22,943

10,995

(33
)
33,905

 
20,700

7,036

20

27,756

Total non-interest expense
22,943

11,774

(33
)
34,684

 
20,700

7,556

20

28,276

Income (loss) before tax
13,522

3,485

(1,038
)
15,969

 
5,152

2,499

(143
)
7,508

Income tax expense (benefit)
4,188

1,321

(324
)
5,185

 
1,365

1,053

(40
)
2,378

Net income (loss)
$
9,334

$
2,164

$
(714
)
$
10,784

 
$
3,787

$
1,446

$
(103
)
$
5,130



8
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES

The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are “tangible equity,” “tangible equity to tangible assets,” “tangible book value per common share,” “total revenue,” “pre-tax, pre-provision net revenue,” and “efficiency ratio.” Although we believe these non-GAAP financial measures provide a greater understanding of our business, these measures are not necessarily comparable to similar measures that may be presented by other companies.

“Tangible equity” is defined as shareholders' equity reduced by intangible assets, including goodwill, if any. We believe this measure is important to management and investors to better understand and assess changes from period to period in shareholders' equity exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a business purchase combination, has the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

“Tangible equity to tangible assets” is defined as the ratio of shareholders' equity reduced by intangible assets, divided by total assets reduced by intangible assets. We believe this measure is important to many investors who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

“Tangible book value per common share” is defined as book value, excluding the impact of goodwill, if any, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill is an intangible asset that is recorded in a purchase business combination.

“Total revenue” is defined as net interest income and non-interest income, excluding gains and losses on the sale of investment securities available-for-sale. We believe adjustments made to our operating revenue allow management and investors to better assess our operating revenue by removing the volatility that is associated with certain other items that are unrelated to our core business.

“Pre-tax, pre-provision net revenue” is defined as net income, without giving effect to loan loss provision and income taxes, and excluding gains and losses on the sale of investment securities available-for-sale. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan losses or other items that are unrelated to our core business.

“Efficiency ratio” is defined as non-interest expense divided by our total revenue. “Efficiency ratio, as adjusted” is defined as non-interest expense, excluding non-recurring expenses associated with the Chartwell acquisition and intangible amortization expense, where applicable, divided by our total revenue. We believe this measure, particularly at the Bank, allows management and investors to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.


9
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
 
June 30,
March 31,
June 30,
(Dollars in thousands, except per share data)
2015
2015
2014
Tangible equity to tangible assets:
 
 
 
Total shareholders' equity
$
314,398

$
308,169

$
300,983

Less: intangible assets
51,595

51,985

53,108

Tangible equity
$
262,803

$
256,184

$
247,875

Total assets
$
3,017,161

$
2,916,111

$
2,732,921

Less: intangible assets
51,595

51,985

53,108

Tangible assets
$
2,965,566

$
2,864,126

$
2,679,813

Tangible equity to tangible assets
8.86
%
8.94
%
9.25
%
 
 
 
 
Tangible book value per common share:
 
 
 
Tangible equity
$
262,803

$
256,184

$
247,875

Common shares outstanding
28,000,695

28,008,462

28,712,779

Tangible book value per common share
$
9.39

$
9.15

$
8.63

 
Three Months Ended
 
Six Months Ended
 
June 30,
March 31,
June 30,
 
June 30,
June 30,
(Dollars in thousands)
2015
2015
2014
 
2015
2014
Pre-tax, pre-provision net revenue:
 
 
 
 
 
 
Net interest income
$
16,618

$
16,456

$
16,038

 
$
33,074

$
31,900

Total non-interest income
9,631

9,058

9,121

 
18,689

13,601

Less: net gain on the sale of investment securities available-for-sale
—

17

414

 
17

1,428

Total revenue
26,249

25,497

24,745

 
51,746

44,073

Less: total non-interest expense
17,582

17,102

15,484

 
34,684

28,276

Pre-tax, pre-provision net revenue
$
8,667

$
8,395

$
9,261

 
$
17,062

$
15,797

 
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
 
Total non-interest expense (numerator)
$
17,582

$
17,102

$
15,484

 
$
34,684

$
28,276

Total revenue (denominator)
$
26,249

$
25,497

$
24,745

 
$
51,746

$
44,073

Efficiency ratio
66.98
%
67.07
%
62.57
%
 
67.03
%
64.16
%
 
 
 
 
 
 
 
Efficiency ratio, as adjusted:
 
 
 
 
 
 
Less: nonrecurring expenses (1)
$
—

$
—

$
—

 
$
—

$
45

Less: intangible amortization expense
390

389

390

 
779

520

Total non-interest expense, as adjusted (numerator)
$
17,192

$
16,713

$
15,094

 
$
33,905

$
27,711

Total revenue (denominator)
$
26,249

$
25,497

$
24,745

 
$
51,746

$
44,073

Efficiency ratio, as adjusted
65.50
%
65.55
%
61.00
%
 
65.52
%
62.88
%

(1) 
Nonrecurring expenses include costs associated with the Chartwell transaction.


10
EXHIBIT 99

BANK SEGMENT
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
 
Three Months Ended
 
Six Months Ended
 
June 30,
March 31,
June 30,
 
June 30,
June 30,
(Dollars in thousands)
2015
2015
2014
 
2015
2014
Bank pre-tax, pre-provision net revenue:
 
 
 
 
 
 
Net interest income
$
17,115

$
16,941

$
16,167

 
$
34,056

$
31,972

Total non-interest income
2,117

1,402

1,571

 
3,519

3,597

Less: net gain on the sale of investment securities available-for-sale
—

17

414

 
17

1,428

Total revenue
19,232

18,326

17,324

 
37,558

34,141

Less: total non-interest expense
11,690

11,254

9,856

 
22,943

20,700

Pre-tax, pre-provision net revenue
$
7,542

$
7,072

$
7,468

 
$
14,615

$
13,441

 
 
 
 
 
 
 
Bank efficiency ratio:
 
 
 
 
 
 
Total non-interest expense (numerator)
$
11,690

$
11,254

$
9,856

 
$
22,943

$
20,700

Total revenue (denominator)
$
19,232

$
18,326

$
17,324

 
$
37,558

$
34,141

Efficiency ratio
60.78
%
61.41
%
56.89
%
 
61.09
%
60.63
%



11