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)
January 19, 2017
Entegra Financial Corp.
(Exact name of registrant as specified in its charter)
| North Carolina | 001-35302 | 45-2460660 | ||
|
(State or other jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
14 One Center Court, Franklin, North Carolina 28734
(Address of principal executive offices) (Zip Code)
(828) 524-7000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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:
| ¨ | 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)) |
Item 2.02. Results of Operations and Financial Condition
On January 19, 2017, Entegra Financial Corp. (the “Company”), the holding company for Entegra Bank, issued a press release announcing its financial results for the three months and year ended December 31, 2016.
A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits |
| (d) |
Exhibits.
|
The following exhibit is filed herewith:
|
Item |
Description | ||
| 99.1 | Press Release dated January 19, 2017. |
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 hereunto duly authorized.
| ENTEGRA FINANCIAL CORP. | ||||
| Date: January 19, 2017 | By: |
/s/ David A. Bright | ||
| David A. Bright | ||||
| Chief Financial Officer | ||||
Exhibit Index
| 99.1 | Press Release dated January 19, 2017. |
FOR IMMEDIATE RELEASE
| Contact: | Roger D. Plemens |
| President and Chief Executive Officer | |
| (828) 524-7000 |
ENTEGRA FINANCIAL CORP. ANNOUNCES
ANNUAL AND FOURTH QUARTER 2016 RESULTS
Franklin, North Carolina, January 19, 2017 — Entegra Financial Corp. (the “Company”) (NASDAQ: ENFC), the holding company for Entegra Bank (the “Bank”), today announced earnings and related data for the three months and year ended December 31, 2016.
Highlights
The following tables highlight the most important trends that the Company believes are relevant to understanding the performance of the Company. As further detailed in Appendix A, core results (a non-GAAP measure) reflect adjustments for material items including FHLB advance prepayment penalties, negative provision for loan losses, merger and acquisition expenses, and the impact of abnormal tax rates and deferred tax asset valuation allowance reversals.
| For the Three Months Ended December 31, | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| GAAP | Core | GAAP | Core | |||||||||||||
| Net income | $ | 2,352 | $ | 2,542 | $ | 1,940 | $ | 1,563 | ||||||||
| Net interest income | $ | 9,219 | N/A | $ | 7,409 | N/A | ||||||||||
| Net interest margin | 3.25 | % | N/A | 3.19 | % | N/A | ||||||||||
| Return on average assets | 0.75 | % | 0.81 | % | 0.77 | % | 0.62 | % | ||||||||
| Return on average equity | 6.91 | % | 7.47 | % | 5.85 | % | 4.71 | % | ||||||||
| Efficiency ratio | 70.34 | % | 67.69 | % | 76.16 | % | 72.64 | % | ||||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.39 | $ | 0.30 | $ | 0.25 | ||||||||
| For the Year Ended December 31, | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| GAAP | Core | GAAP | Core | |||||||||||||
| Net income | $ | 6,376 | $ | 7,881 | $ | 23,825 | $ | 4,990 | ||||||||
| Net interest income | $ | 34,488 | N/A | $ | 27,421 | N/A | ||||||||||
| Net interest margin | 3.28 | % | N/A | 3.11 | % | N/A | ||||||||||
| Return on average assets | 0.55 | % | 0.68 | % | 2.51 | % | 0.53 | % | ||||||||
| Return on average equity | 4.71 | % | 5.82 | % | 19.78 | % | 4.14 | % | ||||||||
| Efficiency ratio | 76.04 | % | 70.56 | % | 83.18 | % | 76.89 | % | ||||||||
| Diluted earnings per share | $ | 0.98 | $ | 1.21 | $ | 3.64 | $ | 0.76 | ||||||||
| As of December 31, | ||||||||
| 2016 | 2015 | |||||||
| (Dollars in thousands, except per share data) | ||||||||
| Asset Quality: | ||||||||
| Non-performing loans | $ | 6,041 | $ | 7,280 | ||||
| Real estate owned | $ | 4,226 | $ | 5,369 | ||||
| Non-performing assets | $ | 10,267 | $ | 12,649 | ||||
| Non-performing loans to total loans | 0.81 | % | 1.17 | % | ||||
| Non-performing assets to total assets | 0.79 | % | 1.23 | % | ||||
| Allowance for loan losses to non-performing loans | 154.03 | % | 129.96 | % | ||||
| Allowance for loan losses to total loans | 1.25 | % | 1.52 | % | ||||
| Other Data: | ||||||||
| Book value per share | $ | 20.57 | $ | 20.08 | ||||
| Tangible book value per share | $ | 20.10 | $ | 19.88 | ||||
| Closing market price per share | $ | 20.60 | $ | 19.36 | ||||
| Closing price-to-tangible book value ratio | 102.49 | % | 97.38 | % | ||||
Management Commentary
Roger D. Plemens, President and CEO of the Company reported, “The fourth quarter represents another successful quarter for the Company as we continue to grow net income and improve return on equity. We are particularly pleased with the growth in net interest income, which grew 24% for the quarter and 26% for the year as compared to the comparable periods in the prior year. This was a key driver in our core return on equity improving to 7.47% in the fourth quarter as compared to 4.71% in the comparable prior year period. We look forward to closing the previously announced acquisition of two branches in northern Georgia during February, 2017 and will continue to look for additional opportunities for growth.”
Net Interest Income
Net interest income increased $1.8 million, or 24.3%, to $9.2 million for the three months ended December 31, 2016 compared to $7.4 million for the same period in 2015. Net interest income increased $7.1 million, or 25.9%, to $34.5 million for the year ended December 31, 2016 compared to $27.4 million for the same period in 2015. The increase in net interest income was primarily due to higher volumes in the loan and investment portfolios as well as a decrease in the interest rate paid on advances and deposits. Net interest margin for the quarter and year ended December 31, 2016 improved to 3.25% and 3.28%, respectively, compared to 3.19% and 3.11% for the same periods in 2015.
Provision for Loan Losses
The provision for loan losses was $0.2 million and $0.3 million for the quarter and year ended December 31, 2016, compared to $0 and $(1.5) million in the comparable periods in 2015. The Company continues to experience a minimal level of net charge-offs and declining levels of non-performing loans.
Noninterest Income
Noninterest income increased $0.4 million, or 28.6%, to $1.8 million for the three months ended December 31, 2016 compared to $1.4 million for the same period in 2015. Noninterest income increased $2.1 million, or 36.2%, to $7.8 million for the year ended December 31, 2016 compared to $5.8 million for the same period in 2015. The improvements were generally due to growth in the Company’s mortgage and SBA business, increases in deposit service charges and interchange fees as a result of growth in the Company’s core deposit balances, as well as higher levels of investment gains.
Noninterest Expense
Noninterest expense increased $1.1 million, or 16.4%, to $7.8 million for the three months ended December 31, 2016 compared to $6.7 million for the same period in 2015. Noninterest expense increased $4.6 million, or 16.7%, to $32.2 million for the year ended December 31, 2016 compared to $27.6 million for the same period in 2015. The increases were generally due to higher compensation and benefits, occupancy, data processing and transaction expenses associated with the acquisition of two branches from Arthur State Bank and the whole bank acquisition of Old Town Bank. The Company incurred $2.2 million of transaction expenses during the year ended December 31, 2016, as compared to $0.3 million in the prior year.
Income Taxes
Income tax expense for the quarter and year ended December 31, 2016 was $0.7 million and $3.5 million, respectively, compared to $0.2 million and $(16.7) million in the comparable periods in the prior year. The Company reversed the valuation allowance on its net deferred tax asset as of June 30, 2015, resulting in an income tax benefit for the year ended December 31, 2015. The Company’s effective tax rate of 35.4% for the year ended December 31, 2016 was negatively impacted by approximately 7.4% as the result of a reduction in the North Carolina corporate tax rate and the write-off of certain residual amounts recorded prior to the reversal of the valuation allowance on its deferred tax asset.
Balance Sheet
Total assets increased $261.5 million, or 25.3%, to $1.29 billion at December 31, 2016 from $1.03 billion at December 31, 2015. Excluding the $111.4 million in assets acquired from Old Town Bank in the second quarter of 2016, the Company experienced a growth rate of $150.1 million, or 14.6%, as the Company continued to leverage its capital with loans and investment securities.
Loans receivable increased $120.3 million, or 19.3%, to $744.4 million at December 31, 2016 from $624.1 million at December 31, 2015, including $65.0 million of loans acquired in the Old Town Bank acquisition. Loan balances, excluding those acquired in the Old Town Bank acquisition, grew 8.9% since December 31, 2015 and have been primarily concentrated in commercial real estate and commercial and industrial loans.
The Company also increased its investment portfolio by $118.3 million from December 31, 2015 to December 31, 2016 in order to better leverage its capital. FHLB advances, which increased $145.0 million from December 31, 2015 to December 31, 2016, were utilized to fund the investment purchases. The Company’s held-to-maturity investment portfolio was transferred to available-for-sale during the third quarter of 2016 in order to provide the Company more flexibility managing its investment portfolio.
Core deposits increased $100.3 million, or 22.8%, to $540.8 million at December 31, 2016 from $440.5 million at December 31, 2015, including $40.6 million of core deposits acquired in the Old Town Bank acquisition. Excluding $48.1 million of certificates of deposit acquired from Old Town Bank, certificates of deposit decreased $35.0 million, or 12.7%, to $289.2 million at December 31, 2016 compared to $276.1 million at December 31, 2015. Core deposits now represent 65% of the Company’s deposit portfolio compared to 61% at December 31, 2015 and 55% at December 31, 2014.
Total equity increased $1.6 million to $133.1 million at December 31, 2016 compared to $131.5 million at December 31, 2015. This increase was primarily attributable to $6.4 million of net income and $0.9 million of stock-based compensation expense, partially offset by a $3.7 million decline in the market value of investment securities and $1.9 million of share repurchases. Tangible book value per share increased $0.22, or 1.1%, from $19.88 at December 31, 2015 to $20.10 at December 31, 2016, after accounting for approximately $0.51 per share dilution incurred from the acquisition of Old Town Bank.
Asset Quality
Non-performing loans decreased 17.8% to $6.0 million at December 31, 2016 from $7.3 million at December 31, 2015. Real estate owned balances decreased $1.2 million to $4.2 million at December 31, 2016 compared to $5.4 million at December 31, 2015. The decrease in non-performing loans was primarily due to the payoff of certain loans. Net loan charge-offs totaled $0.4 million for the year ended December 31, 2016 compared to net loan charge-offs of $0.1 million for the same period in 2015.
Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables in Appendix A, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. This press release and the accompanying tables discuss financial measures, such as core noninterest expense, core net income, core diluted earnings per share, core return on average assets, core return on average equity, and core efficiency ratio, which are non-GAAP measures. We believe that such non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare the Company’s operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP. Investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.
About Entegra Financial Corp. and Entegra Bank
Entegra Financial Corp. is the holding company of Entegra Bank. The Company’s shares began trading on the NASDAQ Global Market on October 1, 2014 under the symbol “ENFC”.
Entegra Bank operates a total of 15 branches located throughout the Western North Carolina counties of Cherokee, Haywood, Henderson, Jackson, Macon, Polk and Transylvania and Upstate South Carolina counties of Anderson, Greenville, and Spartanburg. The Company also operates loan production offices in Asheville, NC and Clemson, SC. For further information, visit the Company’s website www.entegrabank.com.
Disclosures About Forward-Looking Statements
The discussions included in this document and its exhibits may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be “forward-looking statements.” Such statements are often characterized by the use of qualifying words such as “expects,” “anticipates,” “believes,” “estimates,” “plans,” “projects,” or other statements concerning opinions or judgments of the Company and its management about future events. The accuracy of such forward looking statements could be affected by factors including, but not limited to, the financial success or changing conditions or strategies of the Company’s customers or vendors, fluctuations in interest rates, actions of government regulators, the availability of capital and personnel or general economic conditions. These forward looking statements express management’s current expectations, plans or forecasts of future events, results and condition, including financial and other estimates. Additional factors that could cause actual results to differ materially from those anticipated by forward looking statements are discussed in the Company’s filings with the Securities and Exchange Commission, including without limitation its annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to revise or update these statements following the date of this press release.
ENTEGRA FINANCIAL CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
| Three Months Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Interest income | $ | 10,826 | $ | 8,747 | ||||
| Interest expense | 1,607 | 1,338 | ||||||
| Net interest income | 9,219 | 7,409 | ||||||
| Provision for loan losses | 174 | — | ||||||
| Net interest income after provision for loan losses | 9,045 | 7,409 | ||||||
| Servicing income, net | 224 | 108 | ||||||
| Mortgage banking | 157 | 150 | ||||||
| Gain on sale of SBA loans | 186 | 142 | ||||||
| Gain on sale of investments | 111 | 81 | ||||||
| Service charges on deposit accounts | 386 | 363 | ||||||
| Interchange fees | 398 | 339 | ||||||
| Bank owned life insurance | 178 | 114 | ||||||
| Other | 166 | 82 | ||||||
| Total noninterest income | 1,806 | 1,379 | ||||||
| Compensation and employee benefits | 4,426 | 3,618 | ||||||
| Net occupancy | 954 | 819 | ||||||
| Federal Home Loan Bank prepayment penalty | 118 | — | ||||||
| Federal deposit insurance | 94 | 163 | ||||||
| Professional and advisory | 246 | 219 | ||||||
| Data processing | 397 | 341 | ||||||
| Marketing and advertising | 259 | 168 | ||||||
| Net cost of operation of real estate owned | 67 | 2 | ||||||
| Merger-related expenses | 174 | 309 | ||||||
| Other | 1,020 | 1,054 | ||||||
| Total noninterest expense | 7,755 | 6,693 | ||||||
| Income before taxes | 3,096 | 2,095 | ||||||
| Income tax expense | 744 | 155 | ||||||
| Net income | $ | 2,352 | $ | 1,940 | ||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.36 | $ | 0.30 | ||||
| Diluted | $ | 0.36 | $ | 0.30 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 6,458 | 6,546 | ||||||
| Diluted | 6,468 | 6,546 | ||||||
ENTEGRA FINANCIAL CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
| Year Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Interest income | $ | 40,520 | $ | 33,144 | ||||
| Interest expense | 6,032 | 5,723 | ||||||
| Net interest income | 34,488 | 27,421 | ||||||
| Provision for loan losses | 274 | (1,500 | ) | |||||
| Net interest income after provision for loan losses | 34,214 | 28,921 | ||||||
| Servicing income, net | 487 | 341 | ||||||
| Mortgage banking | 904 | 774 | ||||||
| Gain on sale of SBA loans | 928 | 823 | ||||||
| Gain on sale of investments | 1,216 | 403 | ||||||
| Service charges on deposit accounts | 1,537 | 1,269 | ||||||
| Interchange fees | 1,507 | 1,278 | ||||||
| Bank owned life insurance | 489 | 457 | ||||||
| Other | 778 | 450 | ||||||
| Total noninterest income | 7,846 | 5,795 | ||||||
| Compensation and employee benefits | 17,164 | 14,625 | ||||||
| Net occupancy | 3,534 | 2,986 | ||||||
| Federal deposit insurance | 562 | 905 | ||||||
| Professional and advisory | 959 | 1,005 | ||||||
| Data processing | 1,554 | 1,213 | ||||||
| Marketing and advertising | 1,070 | 535 | ||||||
| Net cost of operation of real estate owned | 730 | 505 | ||||||
| Federal Home Loan Bank prepayment penalty | 118 | 1,762 | ||||||
| Merger-related expenses | 2,197 | 329 | ||||||
| Other | 4,301 | 3,765 | ||||||
| Total noninterest expense | 32,189 | 27,630 | ||||||
| Income before taxes | 9,871 | 7,086 | ||||||
| Income tax expense (benefit) | 3,495 | (16,739 | ) | |||||
| Net income | $ | 6,376 | $ | 23,825 | ||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.98 | $ | 3.64 | ||||
| Diluted | $ | 0.98 | $ | 3.64 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 6,477 | 6,546 | ||||||
| Diluted | 6,490 | 6,546 | ||||||
ENTEGRA FINANCIAL CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| December 31, 2016 | December 31, 2015 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 43,294 | $ | 40,650 | ||||
| Investments - trading | 5,211 | 4,714 | ||||||
| Investments - available for sale | 398,291 | 238,862 | ||||||
| Investments - held to maturity | — | 41,164 | ||||||
| Other investments | 15,261 | 8,834 | ||||||
| Loans held for sale | 4,584 | 8,348 | ||||||
| Loans receivable | 744,361 | 624,072 | ||||||
| Allowance for loan losses | (9,305 | ) | (9,461 | ) | ||||
| Real estate owned | 4,226 | 5,369 | ||||||
| Fixed assets, net | 20,209 | 17,673 | ||||||
| Bank owned life insurance | 31,347 | 20,858 | ||||||
| Net deferred tax asset | 18,985 | 18,830 | ||||||
| Goodwill | 2,065 | 711 | ||||||
| Core deposit intangibles, net | 979 | 590 | ||||||
| Other assets | 13,369 | 10,202 | ||||||
| Total assets | $ | 1,292,877 | $ | 1,031,416 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities | ||||||||
| Deposits | $ | 830,013 | $ | 716,617 | ||||
| Federal Home Loan Bank advances | 298,500 | 153,500 | ||||||
| Junior subordinated notes | 14,433 | 14,433 | ||||||
| Post employment benefits | 10,211 | 10,224 | ||||||
| Other liabilities | 6,652 | 5,173 | ||||||
| Total liabilities | $ | 1,159,809 | $ | 899,947 | ||||
| Total shareholders' equity | 133,068 | 131,469 | ||||||
| Total liabilities and shareholders' equity | $ | 1,292,877 | $ | 1,031,416 | ||||
APPENDIX A – RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
| Three Months Ended December 31, | Year Ended December 31 | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
| Core Noninterest Expense | ||||||||||||||||
| Noninterest expense (GAAP) | $ | 7,755 | $ | 6,693 | $ | 32,189 | $ | 27,630 | ||||||||
| FHLB prepayment penalty | (118 | ) | — | (118 | ) | (1,762 | ) | |||||||||
| Merger-related expenses | (174 | ) | (309 | ) | (2,197 | ) | (329 | ) | ||||||||
| Core noninterest expense (Non-GAAP) | $ | 7,463 | $ | 6,384 | $ | 29,874 | $ | 25,539 | ||||||||
| Core Net Income | ||||||||||||||||
| Net income (GAAP) | $ | 2,352 | $ | 1,940 | $ | 6,376 | $ | 23,825 | ||||||||
| FHLB prepayment penalty | 77 | — | 77 | 1,762 | ||||||||||||
| Negative provision for loan losses | — | — | — | (1,500 | ) | |||||||||||
| Merger-related expenses | 113 | 309 | 1,428 | 329 | ||||||||||||
| Adjust actual income tax benefit to 35% estimated effective tax rate (1) | — | (686 | ) | — | (19,426 | ) | ||||||||||
| Core net income (Non-GAAP) | $ | 2,542 | $ | 1,563 | $ | 7,881 | $ | 4,990 | ||||||||
| Core Diluted Earnings Per Share | ||||||||||||||||
| Diluted earnings per share (GAAP) | $ | 0.36 | $ | 0.30 | $ | 0.98 | $ | 3.64 | ||||||||
| FHLB prepayment penalty | 0.01 | — | 0.01 | 0.27 | ||||||||||||
| Negative provision for loan losses | — | — | — | (0.23 | ) | |||||||||||
| Merger-related expenses | 0.02 | 0.05 | 0.22 | 0.05 | ||||||||||||
| Adjust actual income tax benefit to 35% estimated effective tax rate (1) | — | (0.10 | ) | — | (2.97 | ) | ||||||||||
| Core diluted earnings per share (Non-GAAP) | $ | 0.39 | $ | 0.25 | $ | 1.21 | $ | 0.76 | ||||||||
| Core Return on Average Assets | ||||||||||||||||
| Return on Average Assets (GAAP) | 0.75 | % | 0.77 | % | 0.55 | % | 2.51 | % | ||||||||
| FHLB prepayment penalty | 0.02 | % | — | 0.01 | % | 0.18 | ||||||||||
| Negative provision for loan losses | — | — | — | (0.16 | ) | |||||||||||
| Merger-related expenses | 0.04 | % | 0.12 | % | 0.12 | % | 0.03 | |||||||||
| Adjust actual income tax benefit to 35% estimated effective tax rate (1) | — | -0.28 | % | — | (2.05 | ) | ||||||||||
| Core Return on Average Assets (Non-GAAP) | 0.81 | % | 0.62 | % | 0.68 | % | 0.53 | % | ||||||||
| Core Return on Average Equity | ||||||||||||||||
| Return on Average Equity (GAAP) | 6.91 | % | 5.85 | % | 4.71 | % | 19.78 | % | ||||||||
| FHLB prepayment penalty | 0.23 | % | — | 0.06 | % | 1.46 | ||||||||||
| Negative provision for loan losses | — | — | — | (1.24 | ) | |||||||||||
| Merger-related expenses | 0.33 | % | 0.93 | % | 1.05 | % | 0.27 | |||||||||
| Adjust actual income tax benefit to 35% estimated effective tax rate (1) | — | -2.07 | % | — | (16.13 | ) | ||||||||||
| Core Return on Average Equity (Non-GAAP) | 7.47 | % | 4.71 | % | 5.82 | % | 4.14 | % | ||||||||
| Core Efficiency Ratio | ||||||||||||||||
| Efficiency ratio | 70.34 | % | 76.16 | % | 76.04 | % | 83.18 | % | ||||||||
| FHLB prepayment penalty | -1.07 | % | — | -0.28 | % | (5.30 | ) | |||||||||
| Merger-related expenses | -1.58 | % | -3.52 | % | -5.19 | % | (0.99 | ) | ||||||||
| Core Efficiency Ratio (Non-GAAP) | 67.69 | % | 72.64 | % | 70.56 | % | 76.89 | % | ||||||||
| As Of | ||||||||
| December 31, 2016 | December 31, 2015 | |||||||
| (Dollars in thousands, except share data) | ||||||||
| Tangible Book Value Per Share | ||||||||
| Book Value (GAAP) | 133,068 | 131,469 | ||||||
| Goodwill and intangibles | (3,044 | ) | (1,301 | ) | ||||
| Book Value (Tangible) | 130,024 | 130,168 | ||||||
| Outstanding shares | 6,467,550 | 6,546,375 | ||||||
| Tangible Book Value Per Share | 20.10 | 19.88 | ||||||
(1) - The Company maintained a valuation allowance on a portion of its net deferred tax asset during a portion of 2015 and therefore did not recognize a normal income tax provision. Core results have been adjusted to reflect income tax expense to an estimated 35% effective tax rate after the other adjustments have been applied.