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) |
¨ | 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)) |
Emerging growth company | ý |
TRISTATE CAPITAL HOLDINGS, INC. | |
By | /s/ James F. Getz |
James F. Getz | |
Chairman, President and Chief Executive Officer |
• | Pre-tax income grew to $16.1 million, increasing 31.9% from the prior year period and 3.6% from the linked quarter. |
• | Net interest income (NII) and non-interest income, excluding gains on investments, combined to generate total revenue of $41.6 million, increasing 17.8% from the prior year period and 0.7% from the linked quarter. |
• | Average loans grew to $4.59 billion, up 21.3% from the same period last year and 4.9% from the linked quarter. |
• | With growth outpacing loans, average deposits of $4.57 billion increased 27.0% from the same period last year and 11.6% from the linked quarter. |
• | Investment performance across Chartwell’s equity and fixed income strategies attracted net inflows, as AUM grew to $9.87 billion at period end, up 20.4% compared to one year prior and 3.3% during the quarter. |
• | those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which TriState Capital operates and in which its loans are concentrated, including the effects of an increase in unemployment levels, slowdowns in economic growth and changes in demand for products or services or the value of assets under management; |
• | TriState Capital's level of non-performing assets and the costs associated with resolving problem loans including litigation and other costs; |
• | possible loan losses, impairment and the collectability of loans; |
• | changes in market interest rates which may increase funding costs and/or reduce earning asset yields and thus reduce margin; |
• | the impact of changes in interest rates on the credit quality and value of underlying securities collateral of the loan portfolio and the effect of such changes on the market value of TriState Capital's investment securities portfolio; |
• | federal and state regulation, supervision and examination, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder, and potential expenses associated with complying with regulations; |
• | TriState Capital's ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms; |
• | possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations; |
• | any impairment of TriState Capital's goodwill or other intangible assets; |
• | conditions in the financial markets that may limit TriState Capital's access to additional funding to meet its liquidity needs; |
• | the success of TriState Capital's growth plans, including the successful integration of past and future acquisitions; |
• | TriState Capital's ability to fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and customer disintermediation; |
• | TriState Capital’s ability to develop and provide competitive products and services that appeal to its customers and target markets; |
• | negative perceptions or publicity with respect to any products or services offered by TriState Capital; |
• | fluctuations in the carrying value of Chartwell’s assets under management; |
• | the relative and absolute investment performance of Chartwell’s investment products; |
• | adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings; |
• | system failure or breaches of TriState Capital's network security; |
• | TriState Capital's ability to recruit and retain key employees; |
• | Chartwell’s success in negotiating distribution arrangements and maintaining distribution channels for its products; |
• | the failure by a key vendor to fulfill its obligations to TriState Capital; |
• | the effects of problems encountered by other financial institutions that adversely affect TriState Capital or the banking industry generally; |
• | the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks; |
• | possible changes in the speed of loan prepayments by TriState Capital's customers and loan origination or sales volumes; |
• | regulatory limits on TriState Capital's ability to receive dividends from its subsidiaries and pay dividends to its preferred shareholders; |
• | the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above. |
As of and For the Three Months Ended | As of and For the Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Cash and cash equivalents | $ | 186,535 | $ | 164,367 | $ | 136,579 | $ | 186,535 | $ | 136,579 | ||||||
Total investment securities | 393,139 | 288,674 | 220,916 | 393,139 | 220,916 | |||||||||||
Loans held-for-investment | 4,758,356 | 4,552,928 | 3,930,670 | 4,758,356 | 3,930,670 | |||||||||||
Allowance for loan losses | (13,583 | ) | (15,321 | ) | (15,979 | ) | (13,583 | ) | (15,979 | ) | ||||||
Loans held-for-investment, net | 4,744,773 | 4,537,607 | 3,914,691 | 4,744,773 | 3,914,691 | |||||||||||
Goodwill and other intangibles, net | 68,365 | 68,867 | 65,821 | 68,365 | 65,821 | |||||||||||
Other assets | 180,476 | 174,421 | 158,006 | 180,476 | 158,006 | |||||||||||
Total assets | $ | 5,573,288 | $ | 5,233,936 | $ | 4,496,013 | $ | 5,573,288 | $ | 4,496,013 | ||||||
Deposits | $ | 4,754,588 | $ | 4,441,202 | $ | 3,769,870 | $ | 4,754,588 | $ | 3,769,870 | ||||||
Borrowings, net | 262,365 | 264,814 | 279,162 | 262,365 | 279,162 | |||||||||||
Other liabilities | 88,715 | 74,026 | 69,648 | 88,715 | 69,648 | |||||||||||
Total liabilities | 5,105,668 | 4,780,042 | 4,118,680 | 5,105,668 | 4,118,680 | |||||||||||
Preferred stock | 38,468 | 38,432 | — | 38,468 | — | |||||||||||
Common shareholders' equity | 429,152 | 415,462 | 377,333 | 429,152 | 377,333 | |||||||||||
Total shareholders' equity | 467,620 | 453,894 | 377,333 | 467,620 | 377,333 | |||||||||||
Total liabilities and shareholders' equity | $ | 5,573,288 | $ | 5,233,936 | $ | 4,496,013 | $ | 5,573,288 | $ | 4,496,013 |
As of and For the Three Months Ended | As of and For the Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 48,470 | $ | 44,614 | $ | 33,604 | $ | 132,111 | $ | 90,865 | ||||||
Investments | 2,893 | 2,300 | 1,531 | 6,977 | 4,536 | |||||||||||
Interest-earning deposits | 1,061 | 870 | 440 | 2,536 | 1,026 | |||||||||||
Total interest income | 52,424 | 47,784 | 35,575 | 141,624 | 96,427 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits | 22,182 | 16,696 | 10,604 | 52,279 | 25,813 | |||||||||||
Borrowings | 1,423 | 2,297 | 1,366 | 5,473 | 4,060 | |||||||||||
Total interest expense | 23,605 | 18,993 | 11,970 | 57,752 | 29,873 | |||||||||||
Net interest income | 28,819 | 28,791 | 23,605 | 83,872 | 66,554 | |||||||||||
Provision (credit) for loan losses | (234 | ) | 415 | 283 | 376 | 1,042 | ||||||||||
Net interest income after provision for loan losses | 29,053 | 28,376 | 23,322 | 83,496 | 65,512 | |||||||||||
Non-interest income: | ||||||||||||||||
Investment management fees | 9,828 | 9,686 | 9,214 | 28,422 | 27,684 | |||||||||||
Service charges on deposits | 146 | 140 | 96 | 420 | 287 | |||||||||||
Net gain on the sale and call of debt securities | — | 1 | 15 | 6 | 254 | |||||||||||
Swap fees | 1,881 | 1,937 | 1,391 | 5,066 | 3,708 | |||||||||||
Commitment and other loan fees | 373 | 331 | 423 | 1,036 | 1,240 | |||||||||||
Other income | 523 | 407 | 567 | 1,392 | 1,654 | |||||||||||
Total non-interest income | 12,751 | 12,502 | 11,706 | 36,342 | 34,827 | |||||||||||
Non-interest expense: | ||||||||||||||||
Compensation and employee benefits | 16,967 | 15,742 | 14,683 | 48,177 | 42,798 | |||||||||||
Premises and occupancy costs | 1,432 | 1,264 | 1,257 | 3,986 | 3,763 | |||||||||||
Professional fees | 889 | 1,554 | 968 | 3,538 | 2,642 | |||||||||||
FDIC insurance expense | 1,053 | 1,134 | 1,121 | 3,333 | 3,074 | |||||||||||
General insurance expense | 278 | 242 | 245 | 767 | 805 | |||||||||||
State capital shares tax | 485 | 484 | 398 | 1,396 | 1,148 | |||||||||||
Travel and entertainment expense | 986 | 1,006 | 828 | 2,638 | 2,190 | |||||||||||
Intangible amortization expense | 502 | 502 | 463 | 1,465 | 1,388 | |||||||||||
Other operating expenses | 3,094 | 3,390 | 2,849 | 9,554 | 7,946 | |||||||||||
Total non-interest expense | 25,686 | 25,318 | 22,812 | 74,854 | 65,754 | |||||||||||
Income before tax | 16,118 | 15,560 | 12,216 | 44,984 | 34,585 | |||||||||||
Income tax expense | 1,807 | 968 | 2,184 | 5,680 | 8,640 | |||||||||||
Net income | $ | 14,311 | $ | 14,592 | $ | 10,032 | $ | 39,304 | $ | 25,945 | ||||||
Preferred stock dividends on Series A | 679 | 762 | — | 1,441 | — | |||||||||||
Net income available to common shareholders | $ | 13,632 | $ | 13,830 | $ | 10,032 | $ | 37,863 | $ | 25,945 |
As of and For the Three Months Ended | As of and For the Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands, except per share data) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Per share and share data: | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.50 | $ | 0.36 | $ | 1.37 | $ | 0.94 | ||||||
Diluted | $ | 0.47 | $ | 0.48 | $ | 0.35 | $ | 1.31 | $ | 0.90 | ||||||
Book value per common share | $ | 14.84 | $ | 14.35 | $ | 13.17 | $ | 14.84 | $ | 13.17 | ||||||
Tangible book value per common share (1) | $ | 12.47 | $ | 11.97 | $ | 10.88 | $ | 12.47 | $ | 10.88 | ||||||
Common shares outstanding, at end of period | 28,920,978 | 28,947,883 | 28,642,573 | 28,920,978 | 28,642,573 | |||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 27,588,607 | 27,628,120 | 27,515,923 | 27,603,784 | 27,581,229 | |||||||||||
Diluted | 28,949,924 | 28,848,969 | 28,659,990 | 28,849,926 | 28,721,747 | |||||||||||
Performance ratios: | ||||||||||||||||
Return on average assets (2) | 1.01 | % | 1.09 | % | 0.92 | % | 1.00 | % | 0.83 | % | ||||||
Return on average common equity (2) | 12.78 | % | 13.57 | % | 10.69 | % | 12.36 | % | 9.52 | % | ||||||
Net interest margin (2) (3) | 2.22 | % | 2.38 | % | 2.27 | % | 2.31 | % | 2.25 | % | ||||||
Total revenue (1) | $ | 41,570 | $ | 41,292 | $ | 35,296 | $ | 120,208 | $ | 101,127 | ||||||
Bank efficiency ratio (1) | 52.86 | % | 50.49 | % | 54.81 | % | 52.55 | % | 55.88 | % | ||||||
Non-interest expense to average assets (2) | 1.90 | % | 2.00 | % | 2.09 | % | 1.98 | % | 2.11 | % | ||||||
Asset quality: | ||||||||||||||||
Non-performing loans | $ | 2,269 | $ | 2,437 | $ | 6,936 | $ | 2,269 | $ | 6,936 | ||||||
Non-performing assets | $ | 5,845 | $ | 6,013 | $ | 10,517 | $ | 5,845 | $ | 10,517 | ||||||
Other real estate owned | $ | 3,576 | $ | 3,576 | $ | 3,581 | $ | 3,576 | $ | 3,581 | ||||||
Non-performing assets to total assets | 0.10 | % | 0.11 | % | 0.23 | % | 0.10 | % | 0.23 | % | ||||||
Non-performing loans to total loans | 0.05 | % | 0.05 | % | 0.18 | % | 0.05 | % | 0.18 | % | ||||||
Allowance for loan losses to loans | 0.29 | % | 0.34 | % | 0.41 | % | 0.29 | % | 0.41 | % | ||||||
Allowance for loan losses to non-performing loans | 598.63 | % | 628.68 | % | 230.38 | % | 598.63 | % | 230.38 | % | ||||||
Net charge-offs (recoveries) | $ | 1,504 | $ | (88 | ) | $ | 272 | $ | 1,210 | $ | 3,825 | |||||
Net charge-offs (recoveries) to average total loans (2) | 0.13 | % | (0.01 | )% | 0.03 | % | 0.04 | % | 0.14 | % | ||||||
Capital ratios: | ||||||||||||||||
Tier 1 leverage ratio | 7.53 | % | 7.68 | % | 7.40 | % | 7.53 | % | 7.40 | % | ||||||
Common equity tier 1 risk-based capital ratio | 10.52 | % | 10.94 | % | 11.14 | % | 10.52 | % | 11.14 | % | ||||||
Tier 1 risk-based capital ratio | 11.57 | % | 12.06 | % | 11.14 | % | 11.57 | % | 11.14 | % | ||||||
Total risk-based capital ratio | 11.89 | % | 12.66 | % | 11.80 | % | 11.89 | % | 11.80 | % | ||||||
Investment Management Segment: | ||||||||||||||||
Assets under management | $ | 9,865,000 | $ | 9,554,000 | $ | 8,195,000 | $ | 9,865,000 | $ | 8,195,000 | ||||||
EBITDA (1) | $ | 1,867 | $ | 1,627 | $ | 1,648 | $ | 5,010 | $ | 5,815 |
(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. |
Three Months Ended | ||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | ||||||||||||||||||||||||
(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 | $ | 207,346 | $ | 1,015 | 1.94 | % | $ | 186,009 | $ | 842 | 1.82 | % | $ | 131,115 | $ | 420 | 1.27 | % | ||||||||
Federal funds sold | 9,563 | 46 | 1.91 | % | 6,650 | 28 | 1.69 | % | 6,845 | 20 | 1.16 | % | ||||||||||||||
Debt securities available-for-sale | 236,053 | 1,836 | 3.09 | % | 181,718 | 1,356 | 2.99 | % | 132,166 | 697 | 2.09 | % | ||||||||||||||
Debt securities held-to-maturity | 76,341 | 699 | 3.63 | % | 72,166 | 678 | 3.77 | % | 60,220 | 631 | 4.16 | % | ||||||||||||||
Equity securities | 11,219 | 71 | 2.51 | % | 8,620 | 64 | 2.98 | % | 8,575 | 63 | 2.91 | % | ||||||||||||||
FHLB stock | 11,342 | 314 | 10.98 | % | 19,061 | 230 | 4.84 | % | 12,582 | 200 | 6.31 | % | ||||||||||||||
Total loans | 4,594,755 | 48,470 | 4.19 | % | 4,378,514 | 44,614 | 4.09 | % | 3,787,231 | 33,604 | 3.52 | % | ||||||||||||||
Total interest-earning assets | 5,146,619 | 52,451 | 4.04 | % | 4,852,738 | 47,812 | 3.95 | % | 4,138,734 | 35,635 | 3.42 | % | ||||||||||||||
Other assets | 223,996 | 213,320 | 194,405 | |||||||||||||||||||||||
Total assets | $ | 5,370,615 | $ | 5,066,058 | $ | 4,333,139 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 657,402 | $ | 3,267 | 1.97 | % | $ | 604,324 | $ | 2,576 | 1.71 | % | $ | 371,526 | $ | 1,173 | 1.25 | % | ||||||||
Money market deposit accounts | 2,506,334 | 12,428 | 1.97 | % | 2,319,320 | 9,722 | 1.68 | % | 2,021,755 | 6,263 | 1.23 | % | ||||||||||||||
Certificates of deposit | 1,155,888 | 6,487 | 2.23 | % | 928,210 | 4,398 | 1.90 | % | 1,003,280 | 3,168 | 1.25 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
FHLB borrowings | 221,576 | 853 | 1.53 | % | 418,187 | 1,743 | 1.67 | % | 271,304 | 790 | 1.16 | % | ||||||||||||||
Line of credit borrowings | 1,277 | 16 | 4.97 | % | — | — | — | % | 2,571 | 22 | 3.39 | % | ||||||||||||||
Subordinated notes payable, net | 34,832 | 554 | 6.31 | % | 34,781 | 554 | 6.39 | % | 34,629 | 554 | 6.35 | % | ||||||||||||||
Total interest-bearing liabilities | 4,577,309 | 23,605 | 2.05 | % | 4,304,822 | 18,993 | 1.77 | % | 3,705,065 | 11,970 | 1.28 | % | ||||||||||||||
Noninterest-bearing deposits | 253,033 | 245,412 | 205,368 | |||||||||||||||||||||||
Other liabilities | 78,802 | 68,491 | 50,332 | |||||||||||||||||||||||
Shareholders' equity | 461,471 | 447,333 | 372,374 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 5,370,615 | $ | 5,066,058 | $ | 4,333,139 | ||||||||||||||||||||
Net interest income (1) | $ | 28,846 | $ | 28,819 | $ | 23,665 | ||||||||||||||||||||
Net interest spread | 1.99 | % | 2.18 | % | 2.14 | % | ||||||||||||||||||||
Net interest margin (1) | 2.22 | % | 2.38 | % | 2.27 | % |
(1) | Interest income and net interest margin are calculated on a fully taxable equivalent basis. |
Nine Months Ended September 30, | |||||||||||||||||
2018 | 2017 | ||||||||||||||||
(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 | $ | 181,368 | $ | 2,436 | 1.80 | % | $ | 121,640 | $ | 981 | 1.08 | % | |||||
Federal funds sold | 7,761 | 100 | 1.72 | % | 6,501 | 45 | 0.93 | % | |||||||||
Debt securities available-for-sale | 187,041 | 4,150 | 2.97 | % | 145,169 | 2,215 | 2.04 | % | |||||||||
Debt securities held-to-maturity | 69,217 | 1,973 | 3.81 | % | 58,744 | 1,845 | 4.20 | % | |||||||||
Equity securities | 9,498 | 200 | 2.82 | % | 8,496 | 207 | 3.26 | % | |||||||||
FHLB stock | 14,856 | 738 | 6.64 | % | 13,803 | 450 | 4.36 | % | |||||||||
Total loans | 4,381,057 | 132,111 | 4.03 | % | 3,619,679 | 90,865 | 3.36 | % | |||||||||
Total interest-earning assets | 4,850,798 | 141,708 | 3.91 | % | 3,974,032 | 96,608 | 3.25 | % | |||||||||
Other assets | 215,388 | 189,483 | |||||||||||||||
Total assets | $ | 5,066,186 | $ | 4,163,515 | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest-bearing checking accounts | $ | 576,032 | $ | 7,464 | 1.73 | % | $ | 298,631 | $ | 2,295 | 1.03 | % | |||||
Money market deposit accounts | 2,369,910 | 30,263 | 1.71 | % | 1,951,258 | 15,511 | 1.06 | % | |||||||||
Certificates of deposit | 1,021,248 | 14,552 | 1.91 | % | 954,352 | 8,007 | 1.12 | % | |||||||||
Borrowings: | |||||||||||||||||
FHLB borrowings | 316,264 | 3,743 | 1.58 | % | 307,143 | 2,360 | 1.03 | % | |||||||||
Line of credit borrowings | 2,202 | 69 | 4.19 | % | 1,375 | 39 | 3.79 | % | |||||||||
Subordinated notes payable, net | 34,781 | 1,661 | 6.38 | % | 34,579 | 1,661 | 6.42 | % | |||||||||
Total interest-bearing liabilities | 4,320,437 | 57,752 | 1.79 | % | 3,547,338 | 29,873 | 1.13 | % | |||||||||
Noninterest-bearing deposits | 242,325 | 206,063 | |||||||||||||||
Other liabilities | 68,064 | 45,596 | |||||||||||||||
Shareholders' equity | 435,360 | 364,518 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 5,066,186 | $ | 4,163,515 | |||||||||||||
Net interest income (1) | $ | 83,956 | $ | 66,735 | |||||||||||||
Net interest spread | 2.12 | % | 2.12 | % | |||||||||||||
Net interest margin (1) | 2.31 | % | 2.25 | % |
(1) | Interest income and net interest margin are calculated on a fully taxable equivalent basis. |
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||
(Dollars in thousands) | Loan Balance | Percent of Total Loans | Loan Balance | Percent of Total Loans | Loan Balance | Percent of Total Loans | |||||||||||
Private banking loans | $ | 2,627,749 | 55.2 | % | $ | 2,488,162 | 54.6 | % | $ | 2,055,808 | 52.3 | % | |||||
Middle-market banking loans: | |||||||||||||||||
Commercial and industrial | 771,546 | 16.2 | % | 741,901 | 16.3 | % | 648,720 | 16.5 | % | ||||||||
Commercial real estate | 1,359,061 | 28.6 | % | 1,322,865 | 29.1 | % | 1,226,142 | 31.2 | % | ||||||||
Total middle-market banking loans | 2,130,607 | 44.8 | % | 2,064,766 | 45.4 | % | 1,874,862 | 47.7 | % | ||||||||
Loans held-for-investment | $ | 4,758,356 | 100.0 | % | $ | 4,552,928 | 100.0 | % | $ | 3,930,670 | 100.0 | % |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||
(Dollars in thousands) | Bank | Investment Management | Parent and Other | Consolidated | Bank | Investment Management | Parent and Other | Consolidated | |||||||||||||||||
Income statement data: | |||||||||||||||||||||||||
Interest income | $ | 52,354 | $ | — | $ | 70 | $ | 52,424 | $ | 35,512 | $ | — | $ | 63 | $ | 35,575 | |||||||||
Interest expense | 23,038 | — | 567 | 23,605 | 11,398 | — | 572 | 11,970 | |||||||||||||||||
Net interest income (loss) | 29,316 | — | (497 | ) | 28,819 | 24,114 | — | (509 | ) | 23,605 | |||||||||||||||
Provision (credit) for loan losses | (234 | ) | — | — | (234 | ) | 283 | — | — | 283 | |||||||||||||||
Net interest income (loss) after provision for loan losses | 29,550 | — | (497 | ) | 29,053 | 23,831 | — | (509 | ) | 23,322 | |||||||||||||||
Non-interest income: | |||||||||||||||||||||||||
Investment management fees | — | 9,914 | (86 | ) | 9,828 | — | 9,265 | (51 | ) | 9,214 | |||||||||||||||
Net gain on the sale and call of debt securities | — | — | — | — | 15 | — | — | 15 | |||||||||||||||||
Other non-interest income | 2,850 | — | 73 | 2,923 | 2,477 | — | — | 2,477 | |||||||||||||||||
Total non-interest income | 2,850 | 9,914 | (13 | ) | 12,751 | 2,492 | 9,265 | (51 | ) | 11,706 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||
Intangible amortization expense | — | 502 | — | 502 | — | 463 | — | 463 | |||||||||||||||||
Other non-interest expense | 17,002 | 8,173 | 9 | 25,184 | 14,575 | 7,747 | 27 | 22,349 | |||||||||||||||||
Total non-interest expense | 17,002 | 8,675 | 9 | 25,686 | 14,575 | 8,210 | 27 | 22,812 | |||||||||||||||||
Income (loss) before tax | 15,398 | 1,239 | (519 | ) | 16,118 | 11,748 | 1,055 | (587 | ) | 12,216 | |||||||||||||||
Income tax expense (benefit) | 1,676 | 282 | (151 | ) | 1,807 | 1,987 | 435 | (238 | ) | 2,184 | |||||||||||||||
Net income (loss) | $ | 13,722 | $ | 957 | $ | (368 | ) | $ | 14,311 | $ | 9,761 | $ | 620 | $ | (349 | ) | $ | 10,032 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||
(Dollars in thousands) | Bank | Investment Management | Parent and Other | Consolidated | Bank | Investment Management | Parent and Other | Consolidated | |||||||||||||||||
Income statement data: | |||||||||||||||||||||||||
Interest income | $ | 141,424 | $ | — | $ | 200 | $ | 141,624 | $ | 96,220 | $ | — | $ | 207 | $ | 96,427 | |||||||||
Interest expense | 56,027 | — | 1,725 | 57,752 | 28,183 | — | 1,690 | 29,873 | |||||||||||||||||
Net interest income (loss) | 85,397 | — | (1,525 | ) | 83,872 | 68,037 | — | (1,483 | ) | 66,554 | |||||||||||||||
Provision for loan losses | 376 | — | — | 376 | 1,042 | — | — | 1,042 | |||||||||||||||||
Net interest income (loss) after provision for loan losses | 85,021 | — | (1,525 | ) | 83,496 | 66,995 | — | (1,483 | ) | 65,512 | |||||||||||||||
Non-interest income: | |||||||||||||||||||||||||
Investment management fees | — | 28,621 | (199 | ) | 28,422 | — | 27,843 | (159 | ) | 27,684 | |||||||||||||||
Net gain on the sale and call of debt securities | 6 | — | — | 6 | 254 | — | — | 254 | |||||||||||||||||
Other non-interest income | 7,875 | 1 | 38 | 7,914 | 6,888 | 1 | — | 6,889 | |||||||||||||||||
Total non-interest income | 7,881 | 28,622 | (161 | ) | 36,342 | 7,142 | 27,844 | (159 | ) | 34,827 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||
Intangible amortization expense | — | 1,465 | — | 1,465 | — | 1,388 | — | 1,388 | |||||||||||||||||
Other non-interest expense | 49,011 | 23,988 | 390 | 73,389 | 41,868 | 22,398 | 100 | 64,366 | |||||||||||||||||
Total non-interest expense | 49,011 | 25,453 | 390 | 74,854 | 41,868 | 23,786 | 100 | 65,754 | |||||||||||||||||
Income (loss) before tax | 43,891 | 3,169 | (2,076 | ) | 44,984 | 32,269 | 4,058 | (1,742 | ) | 34,585 | |||||||||||||||
Income tax expense (benefit) | 5,485 | 786 | (591 | ) | 5,680 | 7,734 | 1,587 | (681 | ) | 8,640 | |||||||||||||||
Net income (loss) | $ | 38,406 | $ | 2,383 | $ | (1,485 | ) | $ | 39,304 | $ | 24,535 | $ | 2,471 | $ | (1,061 | ) | $ | 25,945 |
September 30, | June 30, | September 30, | |||||||
(Dollars in thousands, except per share data) | 2018 | 2018 | 2017 | ||||||
Tangible book value per common share: | |||||||||
Common shareholders' equity | $ | 429,152 | $ | 415,462 | $ | 377,333 | |||
Less: intangible assets | 68,365 | 68,867 | 65,821 | ||||||
Tangible common equity | $ | 360,787 | $ | 346,595 | $ | 311,512 | |||
Common shares outstanding | 28,920,978 | 28,947,883 | 28,642,573 | ||||||
Tangible book value per common share | $ | 12.47 | $ | 11.97 | $ | 10.88 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Investment Management EBITDA: | ||||||||||||||||
Net income | $ | 957 | $ | 723 | $ | 620 | $ | 2,383 | $ | 2,471 | ||||||
Interest expense | — | — | — | — | — | |||||||||||
Income taxes expense | 282 | 277 | 435 | 786 | 1,587 | |||||||||||
Depreciation expense | 126 | 125 | 130 | 376 | 369 | |||||||||||
Intangible amortization expense | 502 | 502 | 463 | 1,465 | 1,388 | |||||||||||
EBITDA | $ | 1,867 | $ | 1,627 | $ | 1,648 | $ | 5,010 | $ | 5,815 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Total revenue: | ||||||||||||||||
Net interest income | $ | 28,819 | $ | 28,791 | $ | 23,605 | $ | 83,872 | $ | 66,554 | ||||||
Total non-interest income | 12,751 | 12,502 | 11,706 | 36,342 | 34,827 | |||||||||||
Less: net gain on the sale and call of debt securities | — | 1 | 15 | 6 | 254 | |||||||||||
Total revenue | $ | 41,570 | $ | 41,292 | $ | 35,296 | $ | 120,208 | $ | 101,127 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Bank total revenue: | ||||||||||||||||
Net interest income | $ | 29,316 | $ | 29,280 | $ | 24,114 | $ | 85,397 | $ | 68,037 | ||||||
Total non-interest income | 2,850 | 2,850 | 2,492 | 7,881 | 7,142 | |||||||||||
Less: net gain on the sale and call of debt securities | — | 1 | 15 | 6 | 254 | |||||||||||
Bank total revenue | $ | 32,166 | $ | 32,129 | $ | 26,591 | $ | 93,272 | $ | 74,925 | ||||||
Bank efficiency ratio: | ||||||||||||||||
Total non-interest expense (numerator) | $ | 17,002 | $ | 16,223 | $ | 14,575 | $ | 49,011 | $ | 41,868 | ||||||
Total revenue (denominator) | $ | 32,166 | $ | 32,129 | $ | 26,591 | $ | 93,272 | $ | 74,925 | ||||||
Bank efficiency ratio | 52.86 | % | 50.49 | % | 54.81 | % | 52.55 | % | 55.88 | % |