UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): April 15, 2015
C1 FINANCIAL,
INC.
(Exact name of registrant as specified in its charter)
|
Florida (State or other jurisdiction |
001-36595 (Commission |
46-4241720 (IRS Employer |
100 5th Street South
St. Petersburg, Florida 33701
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (877) 266-2265
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 April 15, 2015, C1 Financial, Inc. (the “Registrant”) issued a press release announcing the results of the Registrant for the quarter ended March 31, 2015. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.
The information in this Current Report on Form 8-K and in Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events
The Bank is subject to supervision and examination by the Federal Reserve. The Bank is required to submit to the Federal Deposit Insurance Corporation (the “FDIC”) certain reports entitled “Consolidated Reports of Condition and Income” (each, a “Call Report” and collectively, the “Call Reports”). The Bank's Call Reports are prepared in accordance with regulatory instructions issued by the Federal Financial Institutions Examination Council. The publicly available portions of the Bank's Call Reports are on file with the FDIC and are publicly available on the FDIC's website at www.fdic.gov. The contents of the FDIC’s website are not incorporated by reference into, and are not otherwise a part of, this Form 8-K.
On April 17, 2015, the Bank filed its Call Report for the period ended March 31, 2015. The Registrant anticipates that the publicly available portions of the Call Report will be available on the FDIC's website on or about April 21, 2015.
Item 9.01 Financial Statements and Exhibits
The following exhibit is furnished herewith.
(d) Exhibits.
| Exhibit Number | Description |
| 99.1 | C1 Financial, Inc. Earnings Release – First Quarter 2015 Results |
SIGNATURE
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.
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C1 FINANCIAL, INC. | ||
|
| ||
| By: | /s/ Trevor R. Burgess | |
| Trevor R. Burgess | ||
| President & Chief Executive Officer | ||
Date: April 17, 2015
index to exhibits
| Exhibit Number | Description |
| 99.1 | C1 Financial, Inc. Earnings Release – First Quarter 2015 Results |
Exhibit 99.1
C1 Financial Reports 2015 First Quarter Results
St. Petersburg, FL, April 15, 2015 - C1 Financial, Inc. (NYSE:BNK) today reported net income and non-GAAP operating net income of $3.2 million, or $0.20 per diluted common share for the first quarter of 2015 (“1Q15”), compared to $1.3 million, or $0.08 per diluted common share (and non-GAAP operating net income of $2.8 million, or $0.17 per diluted common share) for the fourth quarter of 2014 (“4Q14”). Please refer to the last table in this document for the explanation of non-GAAP financial measures discussed in this earnings release.
MESSAGE FROM PRESIDENT & CHIEF EXECUTIVE OFFICER
Trevor Burgess, President & Chief Executive Officer of C1 Financial, Inc. stated, “We originated $176 million in new loans in the first quarter of 2015, over three times the production of 1Q14, resulting in C1 Bank originated loan growth during the quarter of 10% and year-over-year growth of 47%. As a percentage of overall loans, C1 Bank's originated loans grew to 74%, up from 71% at the end of 2014. We are excited by the strong start to the year and by our pipeline for 2015.”
1Q15 showed several positive trends in our operating figures:
| 1. | We originated $176 million in new loans in the quarter, resulting in $85 million, or 10.1%, year-to-date growth in C1 Bank originated loans outstanding. Overall loans outstanding (including acquired loans) were $1.257 billion at the end of 1Q15 (up 5.7% from the prior quarter and up 20.3% from one year ago); |
| 2. | Unfunded commitments were $245 million at the end of 1Q15, up $56 million (+29.6%) during the quarter and present a clear opportunity for near-term loan funding; |
| 3. | The quarter saw $72 million growth in core deposits. Core deposits reached 77.2% of total deposits at the end of 1Q15, compared to 73.2% at the end of 4Q14. Noninterest-bearing deposits represented 26.5% of total deposits at the end of 1Q15, compared to 23.9% at the end of the previous quarter. Cost of total deposits fell 3 basis points (“bps”) to 0.47% when compared to 4Q14; |
| 4. | Adjusted net interest margin (a non-GAAP measure which excludes the impact of purchase accounting accretion income) improved by 36 bps (from 4.05% for 4Q14 to 4.41% for 1Q15). Once again, strong loan funding took place late in the quarter. We ended the quarter with excess cash of $50 million and had an average excess cash balance (a non-GAAP measure which measures excess liquidity) of $72 million during 1Q15; |
| 5. | Net interest income was up $656 thousand when compared to 4Q14, driven mainly by an increase in loan average balances and fees related to loan originations, and helped by improvement in the deposit mix; |
| 6. | In 1Q15, sales of other real estate owned (“OREO”) were strong, which reduced our OREO balance by $4.6 million. Including the improvement in nonperforming loans, total nonperforming assets declined $5.8 million when compared to the previous quarter; |
| 7. | C1 Bank originated nonperforming assets accounted for less than 1% of our total nonperforming assets (with C1 Bank originated nonperforming loans below 0.1% of C1 Bank originated loans outstanding). Our Texas Ratio was 25.7% at the end of 1Q15, down from 29.3% at the end of 4Q14. |
ASSETS
Total assets at the end of 1Q15 were $1.597 billion, $60.0 million higher (+3.9%) than at the end of 4Q14, primarily funded by strong deposit growth ($32.3 million) and additional Federal Home Loan Bank (“FHLB”) borrowings ($24.0 million) completed during the quarter.
LOANS
Total loans at the end of 1Q15 were $1.257 billion, up $68.1 million (+5.7%) from the end of 4Q14. Loan growth in 1Q15 was mainly driven by strong loan originations of $176.4 million and funding of unfunded commitments, partially offset by loans paying off in the acquired portfolio, which decreased $17.2 million (-4.9%) from the end of 4Q14 to $331.1 million at the end of 1Q15. The outstanding balance of C1 Bank originated loans grew $85.2 million (+10.1%) during 1Q15. At the end of 1Q15, C1 Bank originated loans represented 74% of the loan portfolio, up from 71% at the end of 4Q14.
DEPOSITS
Total deposits at the end of 1Q15 were $1.2 billion, an increase of $32.3 million (+2.8%) from the end of 4Q14. Core deposits were $926.3 million, or 77.2% of total deposits at the end of 1Q15, compared to $854.2 million, or 73.2% of total deposits at the end of 4Q14. The shift in the deposit mix provided for a 3 bps decline in the cost of total deposits to 0.47% in 1Q15 from 0.50% in 4Q14.
ASSET QUALITY
Nonperforming assets totaled $50.0 million at the end of 1Q15, declining $5.8 million (-10.4%) when compared to the end of 4Q14. The decline in 1Q15 was driven primarily by a reduction of $4.6 million in OREO balances as we continued to sell properties. As a percentage of total assets, nonperforming assets decreased to 3.13% at the end of 1Q15 when compared to 3.63% at the end of 4Q14. Our Texas Ratio improved to 25.7% at the end of 1Q15 from 29.3% at the end of 4Q14. At the end of 1Q15, only $428 thousand, or less than 1.0% of total nonperforming assets, were related to loans originated by C1 Bank.
Total recoveries of $276 thousand net of charge-offs of $4 thousand resulted in net recoveries of $272 thousand in 1Q15 (0.09% of total average loans on an annualized basis), which reflected our continued effort to collect deficiencies, excellent credit quality on originated loans and a lower level of charge-offs on the acquired portfolio. Net recoveries in 1Q15 helped funding of the allowance for loan losses on net loan growth, which resulted in a provision for loan losses of $191 thousand.
Our allowance for loan losses at the end of 1Q15 was $5.8 million (representing 0.46% of total loans), compared to $5.3 million (representing 0.45% of total loans) at the end of 4Q14. On a non-GAAP basis (including remaining loan discount from acquired performing loans), the allowance plus discount amount totaled $9.0 million (representing 0.72% of total loans) at the end of 1Q15, compared to $8.9 million (representing 0.75% of total loans) at the end of 4Q14. This ratio continues to decline as the loan discount is amortized and is diluted by loan growth in the C1 Bank originated portfolio.
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NET INTEREST INCOME AND MARGIN
Net interest income for 1Q15 totaled $15.6 million, up $0.7 million (+4.4%) from 4Q14, mainly driven by growth of our average loans balance combined with an improving deposit mix.
Net interest margin for 1Q15 increased 32 bps to 4.56% from 4.24% in 4Q14, mainly driven by a 33 bps higher yield on average earning assets as we redeployed lower-yielding cash investments into higher-yielding loans, and an improvement in deposit mix (which resulted in a 3 bps decline in the cost of total deposits when compared to the previous quarter), slightly offset by higher FHLB interest expense (as we continue to borrow long term to extend the duration of our liabilities). Strong loan fees and interest income enhanced our yield on loans in the quarter, helping to offset the effect of late quarter loan funding. Adjusted net interest margin (which excludes the effect of purchase accounting) for 1Q15 was 4.41%, or 36 bps higher from 4.05% in 4Q14.
Our average excess cash (defined as our average available cash above our target liquidity level – See explanation of non-GAAP financial measures) was $72.1 million for 1Q15, substantially lower than the $127.1 million for 4Q14. Our excess cash at the end of 1Q15 was $50.0 and continues to present an opportunity for future net interest margin expansion as we deploy these balances into loans.
NONINTEREST INCOME
Noninterest income for 1Q15 was $48 thousand (+3.1%) higher when compared to 4Q14. Included in noninterest income for 1Q15 was $50 thousand growth in income from bank-owned life insurance (“BOLI”), resulting from the December 2014 BOLI investment (which wasn’t fully reflected in income as it was still completing the ramp-up investment period during this quarter).
NONINTEREST EXPENSE & TAXES
Noninterest expense totaled $11.8 million in 1Q15, down $2.2 million (-15.5%) from 4Q14, primarily due to a $2.7 million decline in OREO valuation allowance expense. This reduction was partially offset by a $383 thousand increase in salaries and employee benefits, primarily related to seasonal payroll taxes and provisions for incentive compensation based upon our anticipated growth.
Our income tax expense was $2.0 million for 1Q15 and $1.1 million for 4Q14. The effective tax rate for 1Q15 was 38.4%, reflecting the projected effective tax rate for 2015 (which incorporates the effect of the non-taxable BOLI contract funded in December 2014).
EFFICIENCY
Our efficiency ratio (and operating efficiency ratio) improved to 68.9% in 1Q15 from 85.0% (and 72.1% operating efficiency ratio) in 4Q14, mainly as a result of the $2.7 million decline in OREO valuation allowance expense and $656 thousand growth in our net interest income. We also closely track average assets per employee and annualized revenue per employee, as measures of efficiency. Average assets per employee were $6.5 million in 1Q15, compared to $6.4 million in 4Q14, while annualized revenue per employee was $326 thousand in 1Q15, compared to $307 thousand in 4Q14, which reflected our efforts to achieve productivity gains as we grow our balance sheet.
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NET INCOME AND OPERATING INCOME
Net income (and net operating income) was $3.2 million for 1Q15, compared to $1.3 million (and $2.8 million operating net income) for 4Q14. This corresponded to a return on average assets of 0.82% and 0.34% for 1Q15 and 4Q14, respectively, and a return on average equity of 6.81% and 2.84% for 1Q15 and 4Q14, respectively.
CAPITAL
Our consolidated Tier 1 leverage ratio was 12.01% and total risk-based capital ratio was 14.01% as of the end of 1Q15, reflecting that we remained well capitalized under Interim Final Basel III rules. Additional capital ratios are presented in the financial tables.
OTHER EVENTS DURING 1Q15
On March 3, C1 Bank opened its North Dale Mabry branch in Tampa.
On March 4, C1 Bank and CenterState Bank announced their partnership to offer Smart Loan Express, an inexpensive mobile relationship profitability model for community bankers to use in the field.
On March 9, C1 Bank closed its Franklin Street branch in Tampa. As planned, it was consolidated with the Hyde Park branch (located within 1 mile).
WEBCAST AND CONFERENCE CALL INFORMATION
C1 Financial, Inc. will host a webcast and conference call at 8:30 a.m. (ET) on April 16, 2015 to discuss first quarter 2015 results and other matters. To access the conference call, please dial 1-855-209-8212. The live webcast audio can be heard at http://www.videonewswire.com/event.asp?id=102088.
C1 Financial, Inc. Information
Our name expresses our ideals to put our Clients 1st and our Community 1st. We are focused on serving the needs of entrepreneurs, tailoring a wide range of relationship banking services to entrepreneurs and their families, including commercial loans and a full line of depository products. We are based in St. Petersburg, Florida and operate from 30 banking centers and one loan production office on the West Coast of Florida and in Miami-Dade and Orange Counties. As of December 31, 2014, we were the 18th largest bank headquartered in the state of Florida by assets and the 16th largest by equity, having grown both organically and through acquisitions, and we were the sixth fastest-growing bank in the country as measured by asset growth. Additional information is available at www.c1bank.com.
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Forward-Looking Statements
In addition to historical information, this earnings release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “may,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. There are a number of potential factors, risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These potential factors, risks and uncertainties are discussed in Item 1A of Part I of the Annual Report of C1 Financial, Inc. on Form 10-K for the year ended December 31, 2014.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of any of these forward-looking statements. We are under no duty to update any of these forward-looking statements after the date of this earnings release to conform our prior statements to actual results or revised expectations.
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| C1 Financial, Inc. | ||||||||||||
| Consolidated Balance Sheets - Unaudited | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 (1) | ||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 182,824 | $ | 185,703 | $ | 240,261 | ||||||
| Securities available for sale | - | - | 938 | |||||||||
| Federal Home Loan Bank stock, at cost | 9,989 | 9,224 | 7,964 | |||||||||
| Loans receivable, net | 1,245,938 | 1,179,056 | 1,038,124 | |||||||||
| Premises and equipment, net | 64,973 | 64,075 | 60,259 | |||||||||
| Other real estate owned, net | 30,321 | 34,916 | 38,237 | |||||||||
| Bank-owned life insurance | 43,999 | 43,907 | 8,785 | |||||||||
| Accrued interest receivable | 3,668 | 3,490 | 3,018 | |||||||||
| Core deposit intangible | 904 | 987 | 1,331 | |||||||||
| Prepaid expenses | 5,660 | 5,243 | 3,350 | |||||||||
| Other assets | 8,463 | 10,090 | 10,604 | |||||||||
| Total assets | $ | 1,596,739 | $ | 1,536,691 | $ | 1,412,871 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Deposits | ||||||||||||
| Noninterest bearing | $ | 318,510 | $ | 278,543 | $ | 225,565 | ||||||
| Interest bearing | 881,318 | 888,959 | 889,717 | |||||||||
| Total deposits | 1,199,828 | 1,167,502 | 1,115,282 | |||||||||
| Federal Home Loan Bank advances | 202,500 | 178,500 | 150,500 | |||||||||
| Other borrowings | - | - | 3,000 | |||||||||
| Other liabilities | 4,599 | 4,051 | 7,173 | |||||||||
| Total liabilities | 1,406,927 | 1,350,053 | 1,275,955 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock, par value $1.00; 100,000,000 | ||||||||||||
| shares authorized | 16,101 | 16,101 | 13,052 | |||||||||
| Additional paid-in capital | 148,122 | 148,122 | 105,536 | |||||||||
| Retained earnings | 25,589 | 22,415 | 18,217 | |||||||||
| Accumulated other comprehensive income | - | - | 111 | |||||||||
| Total stockholders’ equity | 189,812 | 186,638 | 136,916 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,596,739 | $ | 1,536,691 | $ | 1,412,871 | ||||||
| Period-end shares outstanding | 16,100,966 | 16,100,966 | 13,051,732 | |||||||||
| Book value per share | $ | 11.79 | $ | 11.59 | $ | 10.49 | ||||||
(1) Share and per share amounts have been restated to reflect the 7-for-1 reverse stock split completed on August 13, 2014.
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| C1 Financial, Inc. | ||||||||||||
| Consolidated Income Statements - Unaudited | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||
| For the Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 (1) | ||||||||||
| Interest income | ||||||||||||
| Loans, including fees | $ | 17,564 | $ | 16,870 | $ | 14,985 | ||||||
| Securities | 3 | 3 | 28 | |||||||||
| Federal funds sold and other | 202 | 285 | 182 | |||||||||
| Total interest income | 17,769 | 17,158 | 15,195 | |||||||||
| Interest expense | ||||||||||||
| Savings and interest-bearing demand deposits | 602 | 582 | 508 | |||||||||
| Time deposits | 784 | 890 | 982 | |||||||||
| Federal Home Loan Bank advances | 808 | 755 | 544 | |||||||||
| Other borrowings | - | 12 | 15 | |||||||||
| Total interest expense | 2,194 | 2,239 | 2,049 | |||||||||
| Net interest income | 15,575 | 14,919 | 13,146 | |||||||||
| Provision (reversal of provision) for loan losses | 191 | (1 | ) | 36 | ||||||||
| Net interest income after provision for loan losses | 15,384 | 14,920 | 13,110 | |||||||||
| Noninterest income | ||||||||||||
| Gains on sales of securities | - | - | - | |||||||||
| Gains on sales of loans | 230 | 209 | 744 | |||||||||
| Service charges and fees | 567 | 582 | 594 | |||||||||
| Bargain purchase gain | - | - | 41 | |||||||||
| Gains on sales of other real estate owned, net | 348 | 329 | 277 | |||||||||
| Bank-owned life insurance | 92 | 42 | 36 | |||||||||
| Mortgage banking fees | - | - | 43 | |||||||||
| Other noninterest income | 365 | 392 | 305 | |||||||||
| Total noninterest income | 1,602 | 1,554 | 2,040 | |||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 5,217 | 4,834 | 4,467 | |||||||||
| Occupancy expense | 1,212 | 1,195 | 1,063 | |||||||||
| Furniture and equipment | 756 | 712 | 640 | |||||||||
| Regulatory assessments | 361 | 400 | 350 | |||||||||
| Network services and data processing | 1,084 | 995 | 851 | |||||||||
| Printing and office supplies | 58 | 119 | 105 | |||||||||
| Postage and delivery | 84 | 74 | 55 | |||||||||
| Advertising and promotion | 826 | 912 | 883 | |||||||||
| Other real estate owned related expense | 593 | 543 | 620 | |||||||||
| Other real estate owned - valuation allowance expense | 31 | 2,722 | 379 | |||||||||
| Amortization of intangible assets | 83 | 86 | 154 | |||||||||
| Professional fees | 698 | 746 | 596 | |||||||||
| Loan collection expenses | 84 | (5 | ) | 148 | ||||||||
| Other noninterest expense | 748 | 672 | 686 | |||||||||
| Total noninterest expense | 11,835 | 14,005 | 10,997 | |||||||||
| Income before income taxes | 5,151 | 2,469 | 4,153 | |||||||||
| Income tax expense | 1,977 | 1,127 | 1,627 | |||||||||
| Net Income | $ | 3,174 | $ | 1,342 | $ | 2,526 | ||||||
| Weighted average shares outstanding - basic | 16,100,966 | 16,100,966 | 12,499,890 | |||||||||
| Weighted average shares outstanding - diluted | 16,100,966 | 16,100,966 | 12,499,890 | |||||||||
| Basic net income per share | $ | 0.20 | $ | 0.08 | $ | 0.20 | ||||||
| Diluted net income per share | 0.20 | 0.08 | 0.20 | |||||||||
(1) Share and per share amounts have been restated to reflect the 7-for-1 reverse stock split completed on August 13, 2014.
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| C1 Financial, Inc. | ||||||||||||||||||||||||||||||||||||
| Average Balance Sheets - Unaudited | ||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||||||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||||||||||||||
| Average | Income/ | Yields/ | Average | Income/ | Yields/ | Average | Income/ | Yields/ | ||||||||||||||||||||||||||||
| Balances (1) | Expense | Rates | Balances (1) | Expense | Rates | Balances (1) | Expense | Rates | ||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||||
| Loans receivable (2) | $ | 1,207,295 | $ | 17,564 | 5.90 | % | $ | 1,145,230 | $ | 16,870 | 5.84 | % | $ | 1,042,129 | $ | 14,985 | 5.83 | % | ||||||||||||||||||
| Securities available for sale and other securities | 250 | 3 | 4.56 | % | 250 | 3 | 4.56 | % | 260 | 28 | 43.94 | % | ||||||||||||||||||||||||
| Federal funds sold and balances at Federal Reserve Bank | 166,413 | 97 | 0.24 | % | 240,126 | 168 | 0.28 | % | 158,256 | 88 | 0.23 | % | ||||||||||||||||||||||||
| FHLB stock | 10,001 | 105 | 4.25 | % | 9,446 | 117 | 4.89 | % | 8,180 | 94 | 4.64 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 1,383,959 | 17,769 | 5.21 | % | 1,395,052 | 17,158 | 4.88 | % | 1,208,825 | 15,195 | 5.10 | % | ||||||||||||||||||||||||
| Noninterest-earning assets | ||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 38,175 | 31,701 | 52,147 | |||||||||||||||||||||||||||||||||
| Other assets (3) | 154,285 | 125,511 | 118,684 | |||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 192,460 | 157,212 | 170,831 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 1,576,419 | $ | 1,552,264 | $ | 1,379,656 | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||
| Time | $ | 290,695 | 784 | 1.09 | % | $ | 324,347 | 890 | 1.09 | % | $ | 366,686 | 982 | 1.09 | % | |||||||||||||||||||||
| Money market | 409,553 | 445 | 0.44 | % | 378,393 | 423 | 0.44 | % | 333,069 | 349 | 0.43 | % | ||||||||||||||||||||||||
| Negotiable order of withdrawal (NOW) | 145,943 | 136 | 0.38 | % | 142,370 | 137 | 0.38 | % | 144,897 | 138 | 0.39 | % | ||||||||||||||||||||||||
| Savings | 38,788 | 21 | 0.22 | % | 38,263 | 22 | 0.22 | % | 38,000 | 21 | 0.22 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 884,979 | 1,386 | 0.64 | % | 883,373 | 1,472 | 0.66 | % | 882,652 | 1,490 | 0.68 | % | ||||||||||||||||||||||||
| Other interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| FHLB advances | 197,000 | 808 | 1.66 | % | 183,860 | 755 | 1.63 | % | 151,224 | 544 | 1.46 | % | ||||||||||||||||||||||||
| Other borrowings | - | - | 0.00 | % | 2,446 | 12 | 1.96 | % | 3,000 | 15 | 1.97 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,081,979 | 2,194 | 0.82 | % | 1,069,679 | 2,239 | 0.83 | % | 1,036,876 | 2,049 | 0.80 | % | ||||||||||||||||||||||||
| Noninterest-bearing liabilities and stockholders' equity: | ||||||||||||||||||||||||||||||||||||
| Demand deposits | 301,097 | 290,628 | 210,523 | |||||||||||||||||||||||||||||||||
| Other liabilities | 4,289 | 4,687 | 4,728 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 189,054 | 187,270 | 127,529 | |||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities and stockholder's equity | 494,440 | 482,585 | 342,780 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,576,419 | $ | 1,552,264 | $ | 1,379,656 | ||||||||||||||||||||||||||||||
| Interest rate spread (taxable-equivalent basis) | 4.39 | % | 4.05 | % | 4.30 | % | ||||||||||||||||||||||||||||||
| Net interest income (taxable-equivalent basis) | $ | 15,575 | $ | 14,919 | $ | 13,146 | ||||||||||||||||||||||||||||||
| Net interest margin (taxable-equivalent basis) | 4.56 | % | 4.24 | % | 4.41 | % | ||||||||||||||||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 127.91 | % | 130.42 | % | 116.58 | % | ||||||||||||||||||||||||||||||
| (1) | Calculated using daily averages. |
| (2) | Average loans are gross, including nonaccrual loans and overdrafts (net of deferred loan fees and before the allowance for loan losses). Interest on loans includes net deferred fees and costs of $913 thousand, $748 thousand and $399 thousand in the three months ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively. |
| (3) | Other assets include bank-owned life insurance, tax lien certificates, OREO, fixed assets, interest receivable, prepaid expense and others. |
| 8 |
| C1 Financial, Inc. | ||||||||||||||||||||
| Selected Quarterly Financial Data - Unaudited | ||||||||||||||||||||
| (In thousands, except per share and employee data) | ||||||||||||||||||||
| 1Q15 | 4Q14 | 3Q14 | 2Q14 (2) | 1Q14 (2) | ||||||||||||||||
| Statement of Income Data | ||||||||||||||||||||
| Interest income | $ | 17,769 | $ | 17,158 | $ | 16,245 | $ | 15,712 | $ | 15,195 | ||||||||||
| Interest expense | 2,194 | 2,239 | 2,223 | 2,115 | 2,049 | |||||||||||||||
| Net interest income | 15,575 | 14,919 | 14,022 | 13,597 | 13,146 | |||||||||||||||
| Provision (reversal of provision) for loan losses | 191 | (1 | ) | 207 | 4,572 | 36 | ||||||||||||||
| Gains on sales of securities | - | - | - | 241 | - | |||||||||||||||
| Bargain purchase gain (loss) | - | - | 37 | (30 | ) | 41 | ||||||||||||||
| Total noninterest income | 1,602 | 1,554 | 1,797 | 2,347 | 2,040 | |||||||||||||||
| Total noninterest expense | 11,835 | 14,005 | 11,280 | 10,950 | 10,997 | |||||||||||||||
| Income before income taxes | 5,151 | 2,469 | 4,332 | 422 | 4,153 | |||||||||||||||
| Income tax expense | 1,977 | 1,127 | 1,706 | 192 | 1,627 | |||||||||||||||
| Net income | 3,174 | 1,342 | 2,626 | 230 | 2,526 | |||||||||||||||
| Operating net income (1) | 3,174 | 2,811 | 3,065 | 230 | 2,526 | |||||||||||||||
| Selected Performance Metrics | ||||||||||||||||||||
| Return on average assets | 0.82 | % | 0.34 | % | 0.70 | % | 0.06 | % | 0.74 | % | ||||||||||
| Return on average equity | 6.81 | % | 2.84 | % | 6.47 | % | 0.66 | % | 8.03 | % | ||||||||||
| Efficiency ratio (1) | 68.9 | % | 85.0 | % | 71.3 | % | 69.7 | % | 72.4 | % | ||||||||||
| Operating return on average assets | 0.82 | % | 0.72 | % | 0.81 | % | 0.06 | % | 0.74 | % | ||||||||||
| Operating return on average equity | 6.81 | % | 5.96 | % | 7.56 | % | 0.66 | % | 8.03 | % | ||||||||||
| Operating efficiency ratio (1) | 68.9 | % | 72.1 | % | 70.2 | % | 69.7 | % | 72.4 | % | ||||||||||
| Full-time employees at period end | 244 | 238 | 246 | 221 | 215 | |||||||||||||||
| Revenue per average number of employees (1) | $ | 326 | $ | 307 | $ | 305 | $ | 343 | $ | 322 | ||||||||||
| Average assets per average number of employees (1) | 6,541 | 6,414 | 6,356 | 6,759 | 6,358 | |||||||||||||||
| Per Share Outstanding Data | ||||||||||||||||||||
| Net earnings per share | $ | 0.20 | $ | 0.08 | $ | 0.18 | $ | 0.02 | $ | 0.20 | ||||||||||
| Diluted net earnings per share | $ | 0.20 | $ | 0.08 | $ | 0.18 | $ | 0.02 | $ | 0.20 | ||||||||||
| Net operating earnings per share | $ | 0.20 | $ | 0.17 | $ | 0.21 | $ | 0.02 | $ | 0.20 | ||||||||||
| Diluted net operating earnings per share | $ | 0.20 | $ | 0.17 | $ | 0.21 | $ | 0.02 | $ | 0.20 | ||||||||||
| Weighted average shares | 16,101 | 16,101 | 14,572 | 13,232 | 12,500 | |||||||||||||||
| Weighted average shares - diluted | 16,101 | 16,101 | 14,572 | 13,232 | 12,500 | |||||||||||||||
| Book value per share | $ | 11.79 | $ | 11.59 | $ | 11.51 | $ | 10.51 | $ | 10.49 | ||||||||||
| Tangible book value per share (1) | $ | 11.72 | $ | 11.51 | $ | 11.43 | $ | 10.40 | $ | 10.37 | ||||||||||
| Common shares outstanding at period end | 16,101 | 16,101 | 16,101 | 13,340 | 13,052 | |||||||||||||||
| Market value per share at period end | $ | 18.75 | $ | 18.29 | $ | 18.13 | N/A | N/A | ||||||||||||
| Market range per share: | ||||||||||||||||||||
| High | 19.10 | 19.70 | 18.77 | N/A | N/A | |||||||||||||||
| Low | 16.25 | 15.98 | 16.66 | N/A | N/A | |||||||||||||||
| 9 |
| Balance Sheet Data | ||||||||||||||||||||
| Cash and due from banks | $ | 182,824 | $ | 185,703 | $ | 283,741 | $ | 258,944 | $ | 240,261 | ||||||||||
| Securities available for sale | - | - | - | - | 938 | |||||||||||||||
| Other securities (included in Other assets in consolidated balance sheet) | 250 | 250 | 250 | 250 | 250 | |||||||||||||||
| Total loans | 1,256,606 | 1,188,522 | 1,134,351 | 1,062,701 | 1,044,786 | |||||||||||||||
| Loans originated by C1 Bank (Nonacquired) | 925,511 | 840,275 | 757,529 | 665,615 | 629,616 | |||||||||||||||
| Loans not originated by C1 Bank (Acquired) | 331,095 | 348,247 | 376,822 | 397,086 | 415,170 | |||||||||||||||
| Net deferred loan fees | (4,881 | ) | (4,142 | ) | (3,759 | ) | (3,323 | ) | (3,036 | ) | ||||||||||
| Loans receivable, gross (3) | 1,251,725 | 1,184,380 | 1,130,592 | 1,059,378 | 1,041,750 | |||||||||||||||
| Allowance for loan losses | (5,787 | ) | (5,324 | ) | (5,441 | ) | (4,593 | ) | (3,626 | ) | ||||||||||
| Loans receivable, net | 1,245,938 | 1,179,056 | 1,125,151 | 1,054,785 | 1,038,124 | |||||||||||||||
| Total assets | 1,596,739 | 1,536,691 | 1,548,045 | 1,449,214 | 1,412,871 | |||||||||||||||
| Total interest-bearing deposits | 881,318 | 888,959 | 870,820 | 882,303 | 889,717 | |||||||||||||||
| Total deposits | 1,199,828 | 1,167,502 | 1,164,964 | 1,135,451 | 1,115,282 | |||||||||||||||
| Borrowings | 202,500 | 178,500 | 192,000 | 168,500 | 153,500 | |||||||||||||||
| Federal Home Loan Bank | 202,500 | 178,500 | 189,000 | 165,500 | 150,500 | |||||||||||||||
| Other | - | - | 3,000 | 3,000 | 3,000 | |||||||||||||||
| Total liabilities | 1,406,927 | 1,350,053 | 1,362,749 | 1,309,023 | 1,275,955 | |||||||||||||||
| Total stockholders’ equity | 189,812 | 186,638 | 185,296 | 140,191 | 136,916 | |||||||||||||||
| Tangible stockholders’ equity (1) | 188,659 | 185,402 | 183,973 | 138,752 | 135,336 | |||||||||||||||
| Selected Average Balance Sheet Data | ||||||||||||||||||||
| Loans receivable, gross (3) | $ | 1,207,295 | $ | 1,145,230 | $ | 1,098,466 | $ | 1,056,231 | $ | 1,042,129 | ||||||||||
| Securities available for sale and other securities | 250 | 250 | 250 | 1,050 | 260 | |||||||||||||||
| Earning assets | 1,383,959 | 1,395,052 | 1,330,762 | 1,271,290 | 1,208,825 | |||||||||||||||
| Total assets | 1,576,419 | 1,552,264 | 1,493,667 | 1,426,124 | 1,379,656 | |||||||||||||||
| Total interest-bearing deposits | 884,979 | 883,373 | 877,488 | 889,932 | 882,652 | |||||||||||||||
| Total deposits | 1,186,076 | 1,174,001 | 1,147,816 | 1,118,423 | 1,093,175 | |||||||||||||||
| Borrowings | 197,000 | 186,306 | 179,964 | 162,028 | 154,224 | |||||||||||||||
| Total stockholders’ equity | 189,054 | 187,270 | 160,933 | 140,653 | 127,529 | |||||||||||||||
| Yields Earned and Rates Paid | ||||||||||||||||||||
| Loans receivable, gross (3) | 5.90 | % | 5.84 | % | 5.79 | % | 5.87 | % | 5.83 | % | ||||||||||
| Adjusted loans receivable, gross (1),(4) | 5.76 | % | 5.65 | % | 5.65 | % | 5.72 | % | 5.59 | % | ||||||||||
| Securities available for sale and other securities | 4.56 | % | 4.56 | % | 4.56 | % | 10.79 | % | 43.94 | % | ||||||||||
| Earning assets | 5.21 | % | 4.88 | % | 4.84 | % | 4.96 | % | 5.10 | % | ||||||||||
| Total interest-bearing deposits | 0.64 | % | 0.66 | % | 0.68 | % | 0.68 | % | 0.68 | % | ||||||||||
| Total deposits | 0.47 | % | 0.50 | % | 0.52 | % | 0.54 | % | 0.55 | % | ||||||||||
| Adjusted total deposits (1),(5) | 0.48 | % | 0.50 | % | 0.53 | % | 0.55 | % | 0.57 | % | ||||||||||
| Borrowings | 1.66 | % | 1.63 | % | 1.59 | % | 1.52 | % | 1.47 | % | ||||||||||
| Total interest-bearing liabilities | 0.82 | % | 0.83 | % | 0.83 | % | 0.81 | % | 0.80 | % | ||||||||||
| Net interest margin (NIM) | 4.56 | % | 4.24 | % | 4.18 | % | 4.29 | % | 4.41 | % | ||||||||||
| Adjusted NIM (1),(6) | 4.41 | % | 4.05 | % | 4.03 | % | 4.12 | % | 4.15 | % |
| 10 |
| Capital Ratios | ||||||||||||||||||||
| Total capital to risk-weighted assets (7) | 14.01 | % | 14.74 | % | 15.45 | % | 12.42 | % | 12.48 | % | ||||||||||
| Tier 1 capital to risk-weighted assets (7) | 13.59 | % | 14.33 | % | 14.96 | % | 11.98 | % | 12.10 | % | ||||||||||
| Common equity tier 1 capital to risk-weighted assets (7) | 13.59 | % | N/A | N/A | N/A | N/A | ||||||||||||||
| Tier 1 leverage ratio (7) | 12.01 | % | 11.95 | % | 12.32 | % | 9.73 | % | 9.80 | % | ||||||||||
| Tangible Equity / Tangible Assets (1) | 11.82 | % | 12.07 | % | 11.89 | % | 9.58 | % | 9.59 | % | ||||||||||
| Equity / Assets | 11.89 | % | 12.15 | % | 11.97 | % | 9.67 | % | 9.69 | % | ||||||||||
| Average Equity / Average Assets | 11.99 | % | 12.06 | % | 10.77 | % | 9.86 | % | 9.24 | % | ||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Total nonperforming loans to loans receivable | 1.57 | % | 1.76 | % | 1.82 | % | 2.02 | % | 2.08 | % | ||||||||||
| Total nonperforming assets to total assets | 3.13 | % | 3.63 | % | 3.78 | % | 3.98 | % | 4.24 | % | ||||||||||
| Allowance for loan losses to nonperforming loans | 29.37 | % | 25.48 | % | 26.39 | % | 21.41 | % | 16.71 | % | ||||||||||
| Annualized net charge-offs (recoveries) to total average loans | (0.09 | )% | 0.04 | % | (0.23 | )% | 1.37 | % | (0.07 | )% | ||||||||||
| Nonacquired net charge-offs (recoveries) to average nonacquired loans | (0.01 | )% | 0.02 | % | (0.08 | )% | 2.46 | % | 0.00 | % | ||||||||||
| Allowance for loan losses to total loans receivable | 0.46 | % | 0.45 | % | 0.48 | % | 0.43 | % | 0.35 | % | ||||||||||
| Allowance for loan losses to nonacquired loans | 0.63 | % | 0.63 | % | 0.72 | % | 0.69 | % | 0.58 | % | ||||||||||
| Texas ratio (8) | 25.7 | % | 29.3 | % | 30.9 | % | 40.3 | % | 43.1 | % | ||||||||||
| Asset Quality Data | ||||||||||||||||||||
| Nonacquired nonperforming assets | $ | 428 | $ | 487 | $ | 567 | $ | 507 | $ | 144 | ||||||||||
| Nonaccrual loans | 428 | 443 | 523 | 463 | 100 | |||||||||||||||
| Other real estate owned (OREO) | - | 44 | 44 | 44 | 44 | |||||||||||||||
| Nonacquired restructured loans (9) | - | - | - | - | - | |||||||||||||||
| Nonacquired nonperforming assets to nonacquired loans plus OREO | 0.05 | % | 0.06 | % | 0.07 | % | 0.08 | % | 0.02 | % | ||||||||||
| Acquired nonperforming assets | $ | 49,597 | $ | 55,323 | $ | 58,004 | $ | 57,224 | $ | 59,797 | ||||||||||
| Nonaccrual loans | 19,276 | 20,451 | 20,092 | 20,990 | 21,604 | |||||||||||||||
| OREO | 30,321 | 34,872 | 37,912 | 36,234 | 38,193 | |||||||||||||||
| Acquired restructured loans | 900 | 906 | 913 | 921 | 927 | |||||||||||||||
| Acquired nonperforming assets to acquired loans plus OREO | 13.72 | % | 14.44 | % | 13.99 | % | 13.21 | % | 13.19 | % | ||||||||||
| Total nonperforming assets | $ | 50,025 | $ | 55,810 | $ | 58,571 | $ | 57,731 | $ | 59,941 | ||||||||||
| Nonaccrual loans | 19,704 | 20,894 | 20,615 | 21,453 | 21,704 | |||||||||||||||
| OREO | 30,321 | 34,916 | 37,956 | 36,278 | 38,237 | |||||||||||||||
| Total restructured loans | 900 | 906 | 913 | 921 | 927 | |||||||||||||||
| Total nonperforming assets to total loans plus OREO | 3.89 | % | 4.56 | % | 5.00 | % | 5.25 | % | 5.53 | % | ||||||||||
| Net charge-offs (recoveries) | $ | (272 | ) | $ | 116 | $ | (641 | ) | $ | 3,605 | $ | (178 | ) | |||||||
| Charge-offs | 4 | 552 | 157 | 4,418 | 168 | |||||||||||||||
| Recoveries | (276 | ) | (436 | ) | (798 | ) | (813 | ) | (346 | ) |
| 11 |
| Loan Composition | ||||||||||||||||||||
| Nonacquired loans by type | ||||||||||||||||||||
| Owner occupied commercial real estate | $ | 139,780 | $ | 124,067 | $ | 107,530 | $ | 97,458 | $ | 68,222 | ||||||||||
| Nonowner occupied commercial real estate | 343,539 | 311,239 | 275,598 | 240,886 | 204,725 | |||||||||||||||
| Commercial | 57,683 | 58,809 | 58,450 | 55,031 | 50,433 | |||||||||||||||
| Construction | 92,389 | 88,072 | 75,126 | 52,238 | 71,144 | |||||||||||||||
| 1-4 family residential real estate | 132,253 | 123,421 | 116,244 | 94,675 | 86,877 | |||||||||||||||
| Multifamily commercial real estate | 26,993 | 27,385 | 26,256 | 26,295 | 51,125 | |||||||||||||||
| Secured by farmland commercial real estate | 54,774 | 57,825 | 59,009 | 60,179 | 61,338 | |||||||||||||||
| Consumer | 78,100 | 49,457 | 39,316 | 38,853 | 35,752 | |||||||||||||||
| Acquired loans by type | ||||||||||||||||||||
| Owner occupied commercial real estate | $ | 99,859 | $ | 107,169 | $ | 113,957 | $ | 118,854 | $ | 123,677 | ||||||||||
| Nonowner occupied commercial real estate | 86,089 | 88,363 | 95,549 | 98,705 | 100,592 | |||||||||||||||
| Commercial | 14,704 | 16,551 | 24,423 | 26,840 | 30,243 | |||||||||||||||
| Construction | 18,738 | 19,364 | 20,069 | 21,092 | 21,745 | |||||||||||||||
| 1-4 family residential real estate | 96,758 | 100,995 | 105,083 | 110,548 | 114,420 | |||||||||||||||
| Multifamily commercial real estate | 5,140 | 5,516 | 5,941 | 6,437 | 8,673 | |||||||||||||||
| Secured by farmland commercial real estate | 1,977 | 2,013 | 3,242 | 5,584 | 5,658 | |||||||||||||||
| Consumer | 7,830 | 8,276 | 8,558 | 9,026 | 10,162 | |||||||||||||||
| New loan originations (10) | $ | 176,356 | $ | 139,009 | $ | 141,436 | $ | 163,611 | $ | 44,611 | ||||||||||
| Unfunded commitments (includes loans, unused lines and standby letters of credit) | 245,051 | 189,049 | 181,224 | 158,557 | 111,954 | |||||||||||||||
| Deposit Composition | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 318,510 | $ | 278,543 | $ | 294,144 | $ | 253,148 | $ | 225,565 | ||||||||||
| Interest-bearing demand/NOW | 146,873 | 140,598 | 135,623 | 140,939 | 144,648 | |||||||||||||||
| Money market and savings | 460,933 | 435,105 | 398,000 | 383,259 | 379,303 | |||||||||||||||
| Retail time | 251,825 | 286,979 | 310,243 | 330,832 | 336,358 | |||||||||||||||
| Jumbo time (11) | 21,687 | 26,277 | 26,954 | 27,273 | 29,408 |
(1) See below for the Generally Accepted Accounting Principles (GAAP) reconciliation and explanation of non-GAAP financial measures.
(2) Share and per share amounts have been restated to reflect the 7-for-1 reverse stock split completed on August 13, 2014.
(3) Total loans, net of deferred loan fees and before the allowance for loan losses. Yield on gross loans is calculated on a 365-day basis and may differ from regulatory “Uniform Bank Performance Report” (UBPR) yield, which annualizes quarterly data by a factor of 4 (Section II, UBPR User’s Guide).
(4) Adjusted yield earned on loans receivable excludes loan accretion from the acquired loan portfolio.
(5) Adjusted rate paid on total deposits excludes amortization of premium for acquired time deposits.
(6) Adjusted net interest margin excludes loan accretion from the acquired loan portfolio, and amortization of premiums for acquired time deposits and Federal Home Loan Bank advances.
(7) Ratios for 1Q15 are calculated under Interim Final Basel III rules. Ratios prior to 1Q15 are calculated under Basel I rules.
(8) Texas ratio is calculated as nonperforming assets divided by tangible stockholders’ equity plus allowance for loan losses.
(9) Restructured loans include accruing and nonaccrual troubled debt restructurings. Nonaccrual restructured loans are included in nonaccrual loans.
(10) New loan originations represent new loan commitments during the periods presented.
(11) Jumbo time deposits are deposits over $250 thousand.
| 12 |
C1 Financial, Inc.
Generally Accepted Accounting Principles (GAAP) Reconciliation and
Explanation of Non-GAAP Financial Measures
(In thousands, except per share and employee data)
Some of the financial measures included in this earnings release are not measures of financial performance recognized by GAAP. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition and results of operations computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP measures that other companies use. The following tables provide a more detailed analysis of these non-GAAP financial measures.
| 1Q15 | 4Q14 | 3Q14 | 2Q14 (1) | 1Q14 (1) | ||||||||||||||||
| Operating net income | ||||||||||||||||||||
| Net income | $ | 3,174 | $ | 1,342 | $ | 2,626 | $ | 230 | $ | 2,526 | ||||||||||
| Addition to allowance for loan losses | - | 117 | 533 | - | - | |||||||||||||||
| Nonrecurring noninterest expense | - | 2,127 | 182 | - | - | |||||||||||||||
| Taxes on nonoperating items | - | (852 | ) | (276 | ) | - | - | |||||||||||||
| Prior period tax adjustment | - | 77 | - | - | - | |||||||||||||||
| Operating net income | $ | 3,174 | $ | 2,811 | $ | 3,065 | $ | 230 | $ | 2,526 | ||||||||||
| Loan loss reserves | ||||||||||||||||||||
| Allowance for loan losses | $ | 5,787 | $ | 5,324 | $ | 5,441 | $ | 4,593 | $ | 3,626 | ||||||||||
| Acquired performing loans discount | 3,242 | 3,532 | 3,811 | 4,093 | 4,461 | |||||||||||||||
| Total | $ | 9,029 | $ | 8,856 | $ | 9,252 | $ | 8,686 | $ | 8,087 | ||||||||||
| Loans receivable, gross | $ | 1,256,606 | $ | 1,188,522 | $ | 1,134,351 | $ | 1,062,701 | $ | 1,044,786 | ||||||||||
| Allowance for loan losses to total loans receivable | 0.46 | % | 0.45 | % | 0.48 | % | 0.43 | % | 0.35 | % | ||||||||||
| Allowance plus performing loans discount to total loans receivable | 0.72 | % | 0.75 | % | 0.82 | % | 0.82 | % | 0.77 | % | ||||||||||
| Efficiency ratio | ||||||||||||||||||||
| Noninterest expense | $ | 11,835 | $ | 14,005 | $ | 11,280 | $ | 10,950 | $ | 10,997 | ||||||||||
| Nonrecurring noninterest expense | - | (2,127 | ) | (182 | ) | - | - | |||||||||||||
| Adjusted noninterest expense | $ | 11,835 | $ | 11,878 | $ | 11,098 | $ | 10,950 | $ | 10,997 | ||||||||||
| Taxable-equivalent net interest income | $ | 15,575 | $ | 14,919 | $ | 14,022 | $ | 13,597 | $ | 13,146 | ||||||||||
| Noninterest income | $ | 1,602 | $ | 1,554 | $ | 1,797 | $ | 2,347 | $ | 2,040 | ||||||||||
| Gains on sales of securities | - | - | - | (241 | ) | - | ||||||||||||||
| Adjusted noninterest income | $ | 1,602 | $ | 1,554 | $ | 1,797 | $ | 2,106 | $ | 2,040 | ||||||||||
| Efficiency ratio | 68.9 | % | 85.0 | % | 71.3 | % | 69.7 | % | 72.4 | % | ||||||||||
| Operating efficiency ratio | 68.9 | % | 72.1 | % | 70.2 | % | 69.7 | % | 72.4 | % | ||||||||||
| Revenue and average assets per average number of employees | ||||||||||||||||||||
| Interest income | $ | 17,769 | $ | 17,158 | $ | 16,245 | $ | 15,712 | $ | 15,195 | ||||||||||
| Noninterest income | 1,602 | 1,554 | 1,797 | 2,347 | 2,040 | |||||||||||||||
| Total revenue | $ | 19,371 | $ | 18,712 | $ | 18,042 | $ | 18,059 | $ | 17,235 | ||||||||||
| Total revenue annualized | $ | 78,560 | $ | 74,238 | $ | 71,580 | $ | 72,434 | $ | 69,898 | ||||||||||
| Total average assets | $ | 1,576,419 | $ | 1,552,264 | $ | 1,493,667 | $ | 1,426,124 | $ | 1,379,656 | ||||||||||
| Average number of employees | 241 | 242 | 235 | 211 | 217 | |||||||||||||||
| Revenue per average number of employees | $ | 326 | $ | 307 | $ | 305 | $ | 343 | $ | 322 | ||||||||||
| Average assets per average number of employees | $ | 6,541 | $ | 6,414 | $ | 6,356 | $ | 6,759 | $ | 6,358 | ||||||||||
| Tangible stockholders' equity and Tangible book value per share | ||||||||||||||||||||
| Total stockholders' equity | $ | 189,812 | $ | 186,638 | $ | 185,296 | $ | 140,191 | $ | 136,916 | ||||||||||
| Less: Goodwill | (249 | ) | (249 | ) | (249 | ) | (249 | ) | (249 | ) | ||||||||||
| Other intangible assets | (904 | ) | (987 | ) | (1,074 | ) | (1,190 | ) | (1,331 | ) | ||||||||||
| Tangible stockholders' equity | $ | 188,659 | $ | 185,402 | $ | 183,973 | $ | 138,752 | $ | 135,336 | ||||||||||
| Common shares outstanding | 16,101 | 16,101 | 16,101 | 13,340 | 13,052 | |||||||||||||||
| Book value per share | $ | 11.79 | $ | 11.59 | $ | 11.51 | $ | 10.51 | $ | 10.49 | ||||||||||
| Tangible book value per share | 11.72 | 11.51 | 11.43 | 10.40 | 10.37 |
| 13 |
| Adjusted yield earned on loans | ||||||||||||||||||||
| Reported yield on loans | 5.90 | % | 5.84 | % | 5.79 | % | 5.87 | % | 5.83 | % | ||||||||||
| Effect of accretion income on acquired loans | (0.14 | )% | (0.19 | )% | (0.14 | )% | (0.15 | )% | (0.24 | )% | ||||||||||
| Adjusted yield on loans | 5.76 | % | 5.65 | % | 5.65 | % | 5.72 | % | 5.59 | % | ||||||||||
| Adjusted rate paid on total deposits | ||||||||||||||||||||
| Reported rate paid on deposits | 0.47 | % | 0.50 | % | 0.52 | % | 0.54 | % | 0.55 | % | ||||||||||
| Effect of premium amortization on acquired deposits | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||
| Adjusted rate paid on deposits | 0.48 | % | 0.50 | % | 0.53 | % | 0.55 | % | 0.57 | % | ||||||||||
| Adjusted net interest margin | ||||||||||||||||||||
| Reported net interest margin | 4.56 | % | 4.24 | % | 4.18 | % | 4.29 | % | 4.41 | % | ||||||||||
| Effect of accretion income on acquired loans | (0.12 | )% | (0.16 | )% | (0.11 | )% | (0.13 | )% | (0.21 | )% | ||||||||||
| Effect of premium amortization on acquired deposits and borrowings | (0.03 | )% | (0.03 | )% | (0.04 | )% | (0.04 | )% | (0.05 | )% | ||||||||||
| Adjusted net interest margin | 4.41 | % | 4.05 | % | 4.03 | % | 4.12 | % | 4.15 | % | ||||||||||
| Average excess cash | ||||||||||||||||||||
| Average total deposits | $ | 1,186,076 | $ | 1,174,001 | $ | 1,147,816 | $ | 1,118,423 | $ | 1,093,175 | ||||||||||
| Borrowings due in one year or less | 25,189 | 28,940 | 34,753 | 33,750 | 26,311 | |||||||||||||||
| Total base for liquidity | $ | 1,211,265 | $ | 1,202,941 | $ | 1,182,569 | $ | 1,152,173 | $ | 1,119,486 | ||||||||||
| Minimum liquidity level (10% of base) (a) | $ | 121,127 | $ | 120,294 | $ | 118,257 | $ | 115,217 | $ | 111,949 | ||||||||||
| Average cash and cash equivalents (b) | 204,588 | 271,827 | 262,617 | 239,171 | 210,403 | |||||||||||||||
| Cash above liquidity level (b)-(a) | 83,461 | 151,533 | 144,360 | 123,954 | 98,454 | |||||||||||||||
| Less estimated short-term deposits | (11,353 | ) | (24,421 | ) | (28,440 | ) | (24,662 | ) | (22,260 | ) | ||||||||||
| Average excess cash | $ | 72,108 | $ | 127,112 | $ | 115,920 | $ | 99,292 | $ | 76,194 | ||||||||||
| Tangible equity to tangible assets | ||||||||||||||||||||
| Total stockholders' equity | $ | 189,812 | $ | 186,638 | $ | 185,296 | $ | 140,191 | $ | 136,916 | ||||||||||
| Less: Goodwill | (249 | ) | (249 | ) | (249 | ) | (249 | ) | (249 | ) | ||||||||||
| Other intangible assets | (904 | ) | (987 | ) | (1,074 | ) | (1,190 | ) | (1,331 | ) | ||||||||||
| Tangible stockholders' equity | $ | 188,659 | $ | 185,402 | $ | 183,973 | $ | 138,752 | $ | 135,336 | ||||||||||
| Total assets | $ | 1,596,739 | $ | 1,536,691 | $ | 1,548,045 | $ | 1,449,214 | $ | 1,412,871 | ||||||||||
| Less: Goodwill | (249 | ) | (249 | ) | (249 | ) | (249 | ) | (249 | ) | ||||||||||
| Other intangible assets | (904 | ) | (987 | ) | (1,074 | ) | (1,190 | ) | (1,331 | ) | ||||||||||
| Tangible assets | $ | 1,595,586 | $ | 1,535,455 | $ | 1,546,722 | $ | 1,447,775 | $ | 1,411,291 | ||||||||||
| Equity/Assets | 11.89 | % | 12.15 | % | 11.97 | % | 9.67 | % | 9.69 | % | ||||||||||
| Tangible Equity/Tangible Assets | 11.82 | % | 12.07 | % | 11.89 | % | 9.58 | % | 9.59 | % |
(1) Share and per share amounts have been restated to reflect the 7-for-1 reverse stock split completed on August 13, 2014.
Definitions of Non-GAAP financial measures
Operating net income excludes certain expense items. Management believes that operating net income is important for investors looking to compare the Company’s operations over time.
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Allowance for loan losses plus performing loans discount to total loans receivable adds the remaining discount on acquired performing loans to the allowance for loan losses to determine the total reserves and loan discounts established against our loans. Our management believes that this metric provides useful information for investors to analyze the overall level of reserves in banks that have completed acquisitions with no allowance carryover.
Efficiency ratio is defined as total noninterest expense divided by the sum of taxable-equivalent net interest income and noninterest income. Noninterest income is adjusted for nonrecurring gains and losses on sales of securities. This ratio is important to investors looking for a measure of efficiency in the Company's productivity measured by the amount of revenue generated for each dollar spent.
Revenue per average number of employees is annualized total interest income and total noninterest income divided by the average number of employees during the period and measures the Company's productivity by calculating the average amount of revenue generated per employee. Average assets per average number of employees is average assets divided by the average number of employees during the period and measures the average value of assets per employee.
Tangible stockholders' equity is defined as total equity reduced by goodwill and other intangible assets. Tangible book value per share is tangible stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets. We have not considered loan servicing rights as an intangible asset for purposes of this calculation.
Adjusted yield earned on loans is our yield on loans after excluding loan accretion from our acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on yield on loans, as the effect of loan discounts accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet.
Adjusted rate paid on total deposits is our cost of deposits after excluding amortization of premium for acquired time deposits. Our management uses this metric to better assess the impact of purchase accounting on cost of deposits, as the effect of amortization of premium related to deposits is expected to decrease as the acquired deposits mature or roll off of our balance sheet.
Adjusted net interest margin is net interest margin after excluding loan accretion from the acquired loan portfolio and amortization of premiums for acquired time deposits and Federal Home Loan Bank advances. Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discounts accretion and amortization of premium related to deposits or borrowings is expected to decrease as the acquired loans and deposits mature or roll off of our balance sheet.
Average excess cash represents the cash and cash equivalents in excess of our minimum liquidity level (defined as 10% of average total deposits plus borrowings due in one year or less), minus Company estimated short-term deposits. Starting in 2015 and based upon an historical analysis, we changed our methodology for estimating short-term deposits. This change resulted in a reduction reflected in 1Q15.
Tangible equity to tangible assets is defined as total equity reduced by goodwill and other intangible assets, divided by total assets reduced by goodwill and other intangible assets. This measure is important to investors interested in relative changes from period-to-period in equity and total assets, each exclusive of changes in intangible assets. We have not considered loan servicing rights as an intangible asset for purposes of this calculation.
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