PEOPLES BANCORP INC. | ||
(Exact name of Registrant as specified in its charter) |
Ohio | 0-16772 | 31-0987416 | ||
(State or other jurisdiction | (Commission File | (I.R.S. Employer | ||
of incorporation) | Number) | Identification Number) |
138 Putnam Street, PO Box 738 | ||||
Marietta, Ohio | 45750-0738 | |||
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: | (740) 373-3155 |
Not applicable | ||
(Former name or former address, if changed since last report) |
x | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act | |
(17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act | |
(17 CFR 240.13e-4(c)) |
PEOPLES BANCORP INC. | ||||
Date: | July 26, 2016 | By:/s/ | JOHN C. ROGERS | |
John C. Rogers | ||||
Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit Number | Description | ||
99 | News Release issued by Peoples Bancorp Inc. on July 26, 2016 |
P.O. BOX 738 - MARIETTA, OHIO - 45750 | NEWS RELEASE | ||
www.peoplesbancorp.com | |||
FOR IMMEDIATE RELEASE | Contact: | John C. Rogers | |
July 26, 2016 | Chief Financial Officer and Treasurer | ||
(740) 373-3155 |
• | Net interest income grew 2% compared to the linked quarter and 6% compared to the second quarter of 2015. |
◦ | Net interest income benefited from higher loan balances and a reduction in higher-cost funding. |
◦ | Net interest margin improved to 3.57% in the second quarter of 2016, compared to 3.53% for the linked quarter and 3.46% in the second quarter of 2015. |
• | Provision for loan losses was $0.7 million for the quarter as credit quality has stabilized over the last two quarters. |
• | Total non-interest expenses were $26.5 million, up slightly from the linked quarter's non-interest expenses and 7% lower than the second quarter of 2015. |
◦ | Efficiency ratio, when adjusted for non-core charges, was 64.9% for the second quarter of 2016, compared to 64.3% for the first quarter of 2016 and 71.5% in the second quarter of 2015. |
◦ | Operating leverage was positive in the first six months of 2016 compared to 2015 as revenue grew 11% and core non-interest expenses increased only 3%. |
• | Period-end total loan balances grew 4% on an annualized basis compared to March 31, 2016 and 6% compared to June 30, 2015. |
◦ | Indirect loans grew $23.3 million, or 51% annualized, compared to the linked quarter, while total consumer loans grew $14.8 million, or 6% annualized. |
◦ | Commercial and industrial loans increased $10.5 million, or 11% annualized, from the linked quarter as total commercial loans increased $8.9 million, or 3% annualized. |
• | Asset quality improved during the quarter as net charge-offs as a percent of average gross loans and criticized loans declined. |
◦ | Net charge-offs as a percent of average gross loans were 0.03% annualized for the quarter, compared to 0.09% in the linked quarter and 0.11% in the second quarter of 2015. Year-to-date, net charge-offs were 0.06% of average loans in 2016 compared to 0.07% in 2015. |
◦ | Criticized loans, which are those categorized as watch, substandard or doubtful, decreased $13.8 million during the quarter. |
◦ | Classified loans, which are those categorized as substandard or doubtful, decreased $6.7 million during the quarter. |
◦ | Nonperforming assets increased slightly to 1.04% of total loans and OREO at June 30, 2016 compared to 1.00% at March 31, 2016. |
◦ | Allowance for loan losses was relatively flat at 1.16% of originated loans, net of deferred fees and costs, at June 30, 2016, compared to 1.17% at March 31, 2016. Since December 31, 2015, the allowance for loan losses has increased $1.1 million. |
• | Other assets increased during the second quarter of 2016 as a result of an investment of $35 million in bank-owned life insurance. |
• | Period-end total deposit balances declined $54.1 million, or 2% compared to the linked quarter. |
◦ | Certificates of deposit and non-interest-bearing deposits decreased $33.6 million and $16.5 million, respectively, during the quarter, while seasonal fluctuations contributed to the $13.3 million decline in governmental deposits. |
◦ | Non-interest bearing deposits, as a percent of total deposits, remained at 28% at June 30, 2016 compared to March 31, 2016. |
◦ | Brokered certificates of deposit totaling $12.9 million, which had a weighted-average rate of 3.84%, matured during the quarter. |
◦ | Core non-interest expenses are non-GAAP since they exclude the impact of costs associated with the core system conversion, acquisition-related costs, pension settlement charges, severance charges and legal settlement charges. |
◦ | Efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income. This measure is non-GAAP since it excludes amortization of other intangible assets and all gains and/or losses included in earnings, and uses fully tax-equivalent net interest income. |
◦ | Tangible assets, tangible equity and tangible book value per common share measures are non-GAAP since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets and the related amortization from earnings. |
◦ | Pre-provision net revenue is defined as net interest income plus total non-interest income minus total non-interest expense. This measure is non-GAAP since it excludes provision for loan losses and all gains and/or losses included in earnings. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
PER COMMON SHARE: | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.44 | $ | 0.44 | $ | 0.27 | $ | 0.88 | $ | 0.25 | |||||||||
Diluted | 0.44 | 0.44 | 0.27 | 0.88 | 0.24 | ||||||||||||||
Cash dividends declared per common share | 0.16 | 0.15 | 0.15 | 0.31 | 0.30 | ||||||||||||||
Book value per common share | 24.07 | 23.60 | 22.74 | 24.07 | 22.74 | ||||||||||||||
Tangible book value per common share (a) | 15.93 | 15.39 | 14.52 | 15.93 | 14.52 | ||||||||||||||
Closing stock price at end of period | $ | 21.79 | $ | 19.54 | $ | 23.34 | $ | 21.79 | $ | 23.34 | |||||||||
SELECTED RATIOS: | |||||||||||||||||||
Return on average stockholders' equity (b) | 7.45 | % | 7.59 | % | 4.69 | % | 7.52 | % | 2.19 | % | |||||||||
Return on average assets (b) | 0.97 | % | 0.98 | % | 0.61 | % | 0.98 | % | 0.28 | % | |||||||||
Efficiency ratio (c) | 65.08 | % | 64.26 | % | 74.19 | % | 64.67 | % | 84.83 | % | |||||||||
Pre-provision net revenue to total average assets (b)(d) | 1.48 | % | 1.54 | % | 0.99 | % | 1.51 | % | 0.54 | % | |||||||||
Net interest margin (b)(e) | 3.57 | % | 3.53 | % | 3.46 | % | 3.55 | % | 3.46 | % | |||||||||
Dividend payout ratio | 36.47 | % | 34.37 | % | 56.14 | % | 35.42 | % | 119.08 | % |
(a) | This amount represents a non-GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(b) | Ratios are presented on an annualized basis. |
(c) | Total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income. This amount represents a non-GAAP financial measure since it excludes amortization of other intangible assets, and all gains and/or losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(d) | This ratio represents a non-GAAP financial measure since it excludes the provision for loan losses and net gains or losses on investment securities, debt extinguishment, loans held-for-sale and other real estate owned, and other assets. This measure is a key metric used by federal bank regulatory agencies in their evaluation of capital adequacy for financial institutions. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(e) | Information presented on a fully tax-equivalent basis. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Total interest income | $ | 28,921 | $ | 28,443 | $ | 27,566 | $ | 57,364 | $ | 51,725 | |||||||||
Total interest expense | 2,613 | 2,676 | 2,773 | 5,289 | 5,513 | ||||||||||||||
Net interest income | 26,308 | 25,767 | 24,793 | 52,075 | 46,212 | ||||||||||||||
Provision for loan losses | 727 | 955 | 672 | 1,682 | 1,022 | ||||||||||||||
Net interest income after provision for loan losses | 25,581 | 24,812 | 24,121 | 50,393 | 45,190 | ||||||||||||||
Net gain on investment securities | 767 | 96 | 11 | 863 | 611 | ||||||||||||||
Loss on debt extinguishment | (707 | ) | — | — | (707 | ) | (520 | ) | |||||||||||
Net loss on loans held-for-sale and other real estate owned | — | (1 | ) | (73 | ) | (1 | ) | (81 | ) | ||||||||||
Net loss on other assets | (62 | ) | (30 | ) | (63 | ) | (92 | ) | (638 | ) | |||||||||
Non-interest income: | |||||||||||||||||||
Insurance income | 3,299 | 4,498 | 3,283 | 7,797 | 7,595 | ||||||||||||||
Trust and investment income | 2,776 | 2,382 | 2,544 | 5,158 | 4,591 | ||||||||||||||
Electronic banking income | 2,567 | 2,535 | 2,312 | 5,102 | 4,292 | ||||||||||||||
Deposit account service charges | 2,563 | 2,603 | 2,848 | 5,166 | 5,143 | ||||||||||||||
Mortgage banking income | 265 | 160 | 412 | 425 | 715 | ||||||||||||||
Other non-interest income | 897 | 876 | 527 | 1,773 | 1,098 | ||||||||||||||
Total non-interest income | 12,367 | 13,054 | 11,926 | 25,421 | 23,434 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefit costs | 13,972 | 14,325 | 14,560 | 28,297 | 31,921 | ||||||||||||||
Net occupancy and equipment expense | 2,581 | 2,806 | 3,138 | 5,387 | 5,433 | ||||||||||||||
Professional fees | 2,123 | 1,459 | 1,808 | 3,582 | 4,255 | ||||||||||||||
Electronic banking expense | 1,485 | 1,433 | 1,320 | 2,918 | 2,444 | ||||||||||||||
Data processing and software expense | 1,013 | 749 | 1,025 | 1,762 | 1,760 | ||||||||||||||
Amortization of other intangible assets | 1,007 | 1,008 | 1,144 | 2,015 | 1,817 | ||||||||||||||
Communication expense | 584 | 628 | 592 | 1,212 | 1,094 | ||||||||||||||
FDIC insurance expense | 540 | 617 | 530 | 1,157 | 954 | ||||||||||||||
Franchise tax expense | 483 | 538 | 502 | 1,021 | 1,050 | ||||||||||||||
Marketing expense | 414 | 398 | 1,071 | 812 | 1,716 | ||||||||||||||
Foreclosed real estate and other loan expenses | 100 | 251 | 551 | 351 | 872 | ||||||||||||||
Other non-interest expense | 2,203 | 2,070 | 2,537 | 4,273 | 8,376 | ||||||||||||||
Total non-interest expense | 26,505 | 26,282 | 28,778 | 52,787 | 61,692 | ||||||||||||||
Income before income taxes | 11,441 | 11,649 | 7,144 | 23,090 | 6,304 | ||||||||||||||
Income tax expense | 3,479 | 3,654 | 2,231 | 7,133 | 2,080 | ||||||||||||||
Net income | $ | 7,962 | $ | 7,995 | $ | 4,913 | $ | 15,957 | $ | 4,224 | |||||||||
PER SHARE DATA: | |||||||||||||||||||
Earnings per common share – Basic | $ | 0.44 | $ | 0.44 | $ | 0.27 | $ | 0.88 | $ | 0.25 | |||||||||
Earnings per common share – Diluted | $ | 0.44 | $ | 0.44 | $ | 0.27 | $ | 0.88 | $ | 0.24 | |||||||||
Cash dividends declared per common share | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.31 | $ | 0.30 | |||||||||
Weighted-average common shares outstanding – Basic | 17,980,797 | 18,071,746 | 18,116,090 | 18,026,272 | 16,965,603 | ||||||||||||||
Weighted-average common shares outstanding – Diluted | 18,113,812 | 18,194,990 | 18,253,918 | 18,154,260 | 17,094,095 | ||||||||||||||
Actual common shares outstanding (end of period) | 18,185,708 | 18,157,932 | 18,391,575 | 18,185,708 | 18,391,575 |
June 30, | December 31, | ||||||
(in $000’s) | 2016 | 2015 | |||||
Assets | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 54,096 | $ | 53,663 | |||
Interest-bearing deposits in other banks | 12,248 | 17,452 | |||||
Total cash and cash equivalents | 66,344 | 71,115 | |||||
Available-for-sale investment securities, at fair value (amortized cost of | |||||||
$750,305 at June 30, 2016 and $780,304 at December 31, 2015) | 772,618 | 784,701 | |||||
Held-to-maturity investment securities, at amortized cost (fair value of | |||||||
$46,143 at June 30, 2016 and $45,853 at December 31, 2015) | 44,306 | 45,728 | |||||
Other investment securities, at cost | 38,402 | 38,401 | |||||
Total investment securities | 855,326 | 868,830 | |||||
Loans, net of deferred fees and costs | 2,128,790 | 2,072,440 | |||||
Allowance for loan losses | (17,838 | ) | (16,779 | ) | |||
Net loans | 2,110,952 | 2,055,661 | |||||
Loans held for sale | 4,223 | 1,953 | |||||
Bank premises and equipment, net of accumulated depreciation | 52,731 | 53,487 | |||||
Goodwill | 132,631 | 132,631 | |||||
Other intangible assets | 15,340 | 16,986 | |||||
Other assets | 95,908 | 58,307 | |||||
Total assets | $ | 3,333,455 | $ | 3,258,970 | |||
Liabilities | |||||||
Deposits: | |||||||
Non-interest-bearing deposits | $ | 699,695 | $ | 717,939 | |||
Interest-bearing deposits | 1,833,276 | 1,818,005 | |||||
Total deposits | 2,532,971 | 2,535,944 | |||||
Short-term borrowings | 173,512 | 160,386 | |||||
Long-term borrowings | 147,980 | 113,670 | |||||
Accrued expenses and other liabilities | 41,239 | 29,181 | |||||
Total liabilities | 2,895,702 | 2,839,181 | |||||
Stockholders' Equity | |||||||
Preferred stock, no par value, 50,000 shares authorized, no shares issued | |||||||
at June 30, 2016 and December 31, 2015 | — | — | |||||
Common stock, no par value, 24,000,000 shares authorized, 18,934,758 shares | |||||||
issued at June 30, 2016 and 18,931,200 shares issued at December 31, 2015, | |||||||
including shares in treasury | 343,540 | 343,948 | |||||
Retained earnings | 101,095 | 90,790 | |||||
Accumulated other comprehensive income (loss), net of deferred income taxes | 11,134 | (359 | ) | ||||
Treasury stock, at cost, 802,957 shares at June 30, 2016 and | |||||||
586,686 shares at December 31, 2015 | (18,016 | ) | (14,590 | ) | |||
Total stockholders' equity | 437,753 | 419,789 | |||||
Total liabilities and stockholders' equity | $ | 3,333,455 | $ | 3,258,970 | |||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
(in $000’s, end of period) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||
Loan Portfolio | |||||||||||||||
Commercial real estate, construction | $ | 98,993 | $ | 81,381 | $ | 75,899 | $ | 81,076 | $ | 61,388 | |||||
Commercial real estate, other | 708,910 | 728,199 | 736,276 | 710,630 | 742,532 | ||||||||||
Commercial and industrial | 378,352 | 367,810 | 351,719 | 357,456 | 327,093 | ||||||||||
Residential real estate | 555,123 | 565,749 | 565,555 | 571,132 | 565,768 | ||||||||||
Home equity lines of credit | 109,017 | 107,701 | 106,429 | 105,767 | 103,991 | ||||||||||
Consumer, indirect | 207,116 | 183,797 | 167,096 | 153,993 | 140,191 | ||||||||||
Consumer, other | 70,065 | 68,395 | 68,018 | 68,874 | 67,807 | ||||||||||
Deposit account overdrafts | 1,214 | 2,083 | 1,448 | 1,317 | 3,263 | ||||||||||
Total loans | $ | 2,128,790 | $ | 2,105,115 | $ | 2,072,440 | $ | 2,050,245 | $ | 2,012,033 | |||||
Total acquired loans (a) | $ | 591,967 | $ | 627,819 | $ | 657,801 | $ | 694,436 | $ | 726,583 | |||||
Total originated loans | $ | 1,536,823 | $ | 1,477,296 | $ | 1,414,639 | $ | 1,355,809 | $ | 1,285,450 | |||||
Deposit Balances | |||||||||||||||
Non-interest-bearing deposits | $ | 699,695 | $ | 716,202 | $ | 717,939 | $ | 711,226 | $ | 681,357 | |||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand accounts | 252,119 | 254,241 | 250,023 | 232,354 | 234,025 | ||||||||||
Retail certificates of deposit | 418,748 | 439,460 | 448,992 | 461,398 | 480,687 | ||||||||||
Money market deposit accounts | 401,828 | 395,022 | 394,119 | 393,472 | 395,788 | ||||||||||
Governmental deposit accounts | 300,639 | 313,904 | 276,639 | 293,889 | 304,221 | ||||||||||
Savings accounts | 438,952 | 434,381 | 414,375 | 404,676 | 410,371 | ||||||||||
Brokered certificates of deposit | 20,990 | 33,873 | 33,857 | 33,841 | 38,123 | ||||||||||
Total interest-bearing deposits | 1,833,276 | 1,870,881 | 1,818,005 | 1,819,630 | 1,863,215 | ||||||||||
Total deposits | $ | 2,532,971 | $ | 2,587,083 | $ | 2,535,944 | $ | 2,530,856 | $ | 2,544,572 | |||||
Asset Quality | |||||||||||||||
Nonperforming assets (NPAs): | |||||||||||||||
Loans 90+ days past due and accruing | $ | 5,869 | $ | 6,746 | $ | 5,969 | $ | 3,760 | $ | 3,165 | |||||
Nonaccrual loans | 15,582 | 13,579 | 13,531 | 21,144 | 20,823 | ||||||||||
Total nonperforming loans (NPLs) | 21,451 | 20,325 | 19,500 | 24,904 | 23,988 | ||||||||||
Other real estate owned (OREO) | 679 | 679 | 733 | 1,566 | 1,322 | ||||||||||
Total NPAs | $ | 22,130 | $ | 21,004 | $ | 20,233 | $ | 26,470 | $ | 25,310 | |||||
Allowance for loan losses as a percent of NPLs (b)(c) | 83.16 | % | 84.92 | % | 86.05 | % | 93.68 | % | 76.05 | % | |||||
NPLs as a percent of total loans (b)(c) | 1.01 | % | 0.97 | % | 0.94 | % | 1.21 | % | 1.19 | % | |||||
NPAs as a percent of total assets (b)(c) | 0.66 | % | 0.64 | % | 0.62 | % | 0.82 | % | 0.79 | % | |||||
NPAs as a percent of total loans and OREO (b)(c) | 1.04 | % | 1.00 | % | 0.98 | % | 1.29 | % | 1.25 | % | |||||
Allowance for loan losses as a percent of originated | |||||||||||||||
loans, net of deferred fees and costs (b) | 1.16 | % | 1.17 | % | 1.19 | % | 1.72 | % | 1.42 | % | |||||
Capital Information (d) | |||||||||||||||
Common Equity Tier 1 risk-based capital ratio | 13.03 | % | 13.10 | % | 13.36 | % | 13.45 | % | 13.74 | % | |||||
Tier 1 risk-based capital ratio | 13.33 | % | 13.41 | % | 13.67 | % | 13.77 | % | 14.06 | % | |||||
Total risk-based capital ratio (Tier 1 and Tier 2) | 14.23 | % | 14.29 | % | 14.54 | % | 14.97 | % | 15.04 | % | |||||
Leverage ratio | 9.56 | % | 9.45 | % | 9.52 | % | 9.57 | % | 9.50 | % | |||||
Common Equity Tier 1 capital | $ | 295,148 | $ | 288,787 | $ | 288,416 | $ | 287,020 | $ | 285,680 | |||||
Tier 1 capital | 301,977 | 295,569 | 295,151 | 293,705 | 292,316 | ||||||||||
Total capital (Tier 1 and Tier 2) | 322,413 | 314,896 | 313,974 | 319,277 | 312,773 | ||||||||||
Total risk-weighted assets | $ | 2,265,022 | $ | 2,203,776 | $ | 2,158,713 | $ | 2,133,399 | $ | 2,079,341 | |||||
Tangible equity to tangible assets (e) | 9.10 | % | 8.88 | % | 8.69 | % | 8.88 | % | 8.73 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Provision for Loan Losses | |||||||||||||||||||
Provision for loan losses | $ | 575 | $ | 858 | $ | 500 | $ | 1,433 | $ | 750 | |||||||||
Provision for checking account overdrafts | 152 | 97 | 172 | 249 | 272 | ||||||||||||||
Total provision for loan losses | $ | 727 | $ | 955 | $ | 672 | $ | 1,682 | $ | 1,022 | |||||||||
Net Charge-Offs | |||||||||||||||||||
Gross charge-offs | $ | 855 | $ | 2,003 | $ | 971 | $ | 2,857 | $ | 1,555 | |||||||||
Recoveries | 705 | 1,530 | 391 | 2,234 | 833 | ||||||||||||||
Net charge-offs | $ | 150 | $ | 473 | $ | 580 | $ | 623 | $ | 722 | |||||||||
Net Charge-Offs (Recoveries) by Type | |||||||||||||||||||
Commercial real estate, other | $ | (17 | ) | $ | (1,136 | ) | $ | 7 | $ | (1,153 | ) | $ | (38 | ) | |||||
Commercial and industrial | (244 | ) | 1,012 | 262 | 767 | 249 | |||||||||||||
Residential real estate | 194 | 139 | 52 | 333 | 123 | ||||||||||||||
Home equity lines of credit | — | 3 | (42 | ) | 3 | 1 | |||||||||||||
Consumer | 84 | 362 | 156 | 447 | 157 | ||||||||||||||
Deposit account overdrafts | 133 | 93 | 145 | 226 | 230 | ||||||||||||||
Total net charge-offs | $ | 150 | $ | 473 | $ | 580 | $ | 623 | $ | 722 | |||||||||
As a percent of average gross loans (annualized) | 0.03 | % | 0.09 | % | 0.11 | % | 0.06 | % | 0.07 | % |
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
(in $000’s, end of period) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||
Trust assets under management | $ | 1,280,004 | $ | 1,254,824 | $ | 1,275,253 | $ | 1,261,112 | $ | 1,303,792 | |||||||||
Brokerage assets under management | 729,519 | 706,314 | 664,153 | 621,242 | 641,412 | ||||||||||||||
Mortgage loans serviced for others | $ | 380,741 | $ | 383,531 | $ | 390,398 | $ | 387,200 | $ | 392,625 | |||||||||
Employees (full-time equivalent) | 803 | 821 | 817 | 821 | 831 |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Short-term investments | $ | 9,073 | $ | 11 | 0.49 | % | $ | 12,436 | $ | 16 | 0.52 | % | $ | 94,376 | $ | 57 | 0.25 | % | ||||||||
Other long-term investments | — | — | — | % | — | — | — | % | 1,345 | 4 | 1.19 | % | ||||||||||||||
Investment securities (a)(b) | 877,046 | 5,984 | 2.73 | % | 875,644 | 5,926 | 2.71 | % | 838,181 | 5,840 | 2.79 | % | ||||||||||||||
Gross loans (b)(c) | 2,122,000 | 23,428 | 4.39 | % | 2,091,739 | 23,009 | 4.38 | % | 1,999,998 | 22,192 | 4.41 | % | ||||||||||||||
Allowance for loan losses | (17,362 | ) | (16,845 | ) | (17,918 | ) | ||||||||||||||||||||
Total earning assets | 2,990,757 | 29,423 | 3.92 | % | 2,962,974 | 28,951 | 3.90 | % | 2,915,982 | 28,093 | 3.84 | % | ||||||||||||||
Intangible assets | 148,464 | 149,528 | 151,736 | |||||||||||||||||||||||
Other assets | 167,435 | 160,133 | 152,205 | |||||||||||||||||||||||
Total assets | $ | 3,306,656 | $ | 3,272,635 | $ | 3,219,923 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 438,368 | $ | 58 | 0.05 | % | $ | 421,797 | $ | 56 | 0.05 | % | $ | 407,713 | $ | 55 | 0.05 | % | ||||||||
Government deposit accounts | 302,852 | 146 | 0.19 | % | 298,685 | 147 | 0.20 | % | 307,535 | 165 | 0.22 | % | ||||||||||||||
Interest-bearing demand accounts | 251,773 | 46 | 0.07 | % | 251,341 | 45 | 0.07 | % | 234,602 | 48 | 0.08 | % | ||||||||||||||
Money market deposit accounts | 400,286 | 165 | 0.17 | % | 398,515 | 160 | 0.16 | % | 397,217 | 158 | 0.16 | % | ||||||||||||||
Brokered certificates of deposits | 29,542 | 273 | 3.73 | % | 33,875 | 315 | 3.75 | % | 38,114 | 354 | 3.73 | % | ||||||||||||||
Retail certificates of deposit | 431,075 | 815 | 0.76 | % | 454,224 | 878 | 0.78 | % | 489,604 | 838 | 0.69 | % | ||||||||||||||
Total interest-bearing deposits | 1,853,896 | 1,503 | 0.33 | % | 1,858,437 | 1,601 | 0.35 | % | 1,874,785 | 1,618 | 0.35 | % | ||||||||||||||
Short-term borrowings | 142,888 | 105 | 0.29 | % | 135,689 | 87 | 0.26 | % | 76,242 | 31 | 0.16 | % | ||||||||||||||
Long-term borrowings | 118,427 | 1,005 | 3.40 | % | 113,370 | 988 | 3.50 | % | 129,891 | 1,124 | 3.47 | % | ||||||||||||||
Total borrowed funds | 261,315 | 1,110 | 1.70 | % | 249,059 | 1,075 | 1.74 | % | 206,133 | 1,155 | 2.25 | % | ||||||||||||||
Total interest-bearing liabilities | 2,115,211 | 2,613 | 0.50 | % | 2,107,496 | 2,676 | 0.51 | % | 2,080,918 | 2,773 | 0.53 | % | ||||||||||||||
Non-interest-bearing deposits | 726,066 | 710,297 | 690,483 | |||||||||||||||||||||||
Other liabilities | 35,307 | 31,299 | 28,709 | |||||||||||||||||||||||
Total liabilities | 2,876,584 | 2,849,092 | 2,800,110 | |||||||||||||||||||||||
Stockholders’ equity | 430,072 | 423,543 | 419,813 | |||||||||||||||||||||||
Total liabilities and equity | $ | 3,306,656 | $ | 3,272,635 | $ | 3,219,923 | ||||||||||||||||||||
Net interest income/spread (b) | $ | 26,810 | 3.42 | % | $ | 26,275 | 3.39 | % | $ | 25,320 | 3.31 | % | ||||||||||||||
Net interest margin (b) | 3.57 | % | 3.53 | % | 3.46 | % | ||||||||||||||||||||
(a) Average balances are based on carrying value. | ||||||||||||||||||||||||||
(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate. | ||||||||||||||||||||||||||
(c) Average balances include nonaccrual, impaired loans and loans held for sale. Interest income includes interest earned on nonaccrual loans prior to the loans being placed on nonaccrual status and related interest income on loans originated for sale prior to the loan being sold. Loan fees included in interest income were immaterial for all periods presented. |
For the Six Months Ended | |||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||
Assets | |||||||||||||||||
Short-term investments | $ | 10,754 | $ | 27 | 0.50 | % | $ | 78,704 | $ | 94 | 0.24 | % | |||||
Other long-term investments | — | — | — | % | 1,345 | 7 | 1.05 | % | |||||||||
Investment securities (a)(b) | 876,345 | 11,912 | 2.72 | % | 798,442 | 11,163 | 2.80 | % | |||||||||
Gross loans (b)(c) | 2,106,869 | 46,435 | 4.41 | % | 1,859,169 | 41,397 | 4.45 | % | |||||||||
Allowance for loan losses | (17,103 | ) | (17,903 | ) | |||||||||||||
Total earning assets | 2,976,865 | 58,374 | 3.90 | % | 2,719,757 | 52,661 | 3.87 | % | |||||||||
Intangible assets | 148,996 | 136,729 | |||||||||||||||
Other assets | 162,608 | 136,853 | |||||||||||||||
Total assets | $ | 3,288,469 | $ | 2,993,339 | |||||||||||||
Liabilities and Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Savings accounts | $ | 430,082 | $ | 114 | 0.05 | % | $ | 367,274 | $ | 98 | 0.05 | % | |||||
Government deposit accounts | 300,769 | 293 | 0.20 | % | 259,836 | 289 | 0.22 | % | |||||||||
Interest-bearing demand accounts | 251,557 | 91 | 0.07 | % | 208,109 | 87 | 0.08 | % | |||||||||
Money market deposit accounts | 399,401 | 326 | 0.16 | % | 373,965 | 298 | 0.16 | % | |||||||||
Brokered certificates of deposits | 31,708 | 588 | 3.74 | % | 38,273 | 706 | 3.72 | % | |||||||||
Retail certificates of deposit | 442,649 | 1,692 | 0.77 | % | 467,227 | 1,699 | 0.73 | % | |||||||||
Total interest-bearing deposits | 1,856,166 | 3,104 | 0.34 | % | 1,714,684 | 3,177 | 0.37 | % | |||||||||
Short-term borrowings | 139,288 | 192 | 0.28 | % | 80,511 | 66 | 0.16 | % | |||||||||
Long-term borrowings | 115,899 | 1,993 | 3.45 | % | 153,989 | 2,270 | 2.96 | % | |||||||||
Total borrowed funds | 255,187 | 2,185 | 1.72 | % | 234,500 | 2,336 | 2.00 | % | |||||||||
Total interest-bearing liabilities | 2,111,353 | 5,289 | 0.50 | % | 1,949,184 | 5,513 | 0.57 | % | |||||||||
Non-interest-bearing deposits | 718,181 | 620,788 | |||||||||||||||
Other liabilities | 32,127 | 34,171 | |||||||||||||||
Total liabilities | 2,861,661 | 2,604,143 | |||||||||||||||
Stockholders’ equity | 426,808 | 389,196 | |||||||||||||||
Total liabilities and equity | $ | 3,288,469 | $ | 2,993,339 | |||||||||||||
Net interest income/spread (b) | $ | 53,085 | 3.40 | % | $ | 47,148 | 3.30 | % | |||||||||
Net interest margin (b) | 3.55 | % | 3.46 | % | |||||||||||||
(a) Average balances are based on carrying value. | |||||||||||||||||
(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate. | |||||||||||||||||
(c) Average balances include nonaccrual, impaired loans and loans held for sale. Interest income includes interest earned on nonaccrual loans prior to the loans being placed on nonaccrual status and related interest income on loans originated for sale prior to the loan being sold. Loan fees included in interest income were immaterial for all periods presented. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Core non-interest expenses: | |||||||||||||||||||
Total non-interest expense | $ | 26,505 | $ | 26,282 | $ | 28,778 | $ | 52,787 | $ | 61,692 | |||||||||
Less: Core conversion associated costs | 90 | — | — | 90 | — | ||||||||||||||
Less: Acquisition-related costs | — | — | 732 | — | 9,775 | ||||||||||||||
Less: Pension settlement charges | — | — | 103 | — | 372 | ||||||||||||||
Less: Other non-core charges | — | — | 185 | — | 185 | ||||||||||||||
Core non-interest expenses | $ | 26,415 | $ | 26,282 | $ | 27,758 | $ | 52,697 | $ | 51,360 |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Efficiency ratio: | |||||||||||||||||||
Total non-interest expense | 26,505 | 26,282 | 28,778 | 52,787 | 61,692 | ||||||||||||||
Less: Amortization of intangible assets | 1,007 | 1,008 | 1,144 | 2,015 | 1,817 | ||||||||||||||
Adjusted non-interest expense | 25,498 | 25,274 | 27,634 | 50,772 | 59,875 | ||||||||||||||
Total non-interest income | 12,367 | 13,054 | 11,926 | 25,421 | 23,434 | ||||||||||||||
Net interest income | 26,308 | 25,767 | 24,793 | 52,075 | 46,212 | ||||||||||||||
Add: Fully tax-equivalent adjustment | $ | 502 | $ | 508 | $ | 527 | $ | 1,010 | $ | 936 | |||||||||
Net interest income on a fully taxable-equivalent basis | $ | 26,810 | $ | 26,275 | $ | 25,320 | $ | 53,085 | $ | 47,148 | |||||||||
Adjusted revenue | $ | 39,177 | $ | 39,329 | $ | 37,246 | $ | 78,506 | $ | 70,582 | |||||||||
Efficiency ratio | 65.08 | % | 64.26 | % | 74.19 | % | 64.67 | % | 84.83 | % | |||||||||
Efficiency ratio adjusted for non-core charges: | |||||||||||||||||||
Core non-interest expenses | $ | 26,415 | $ | 26,282 | $ | 27,758 | $ | 52,697 | $ | 51,360 | |||||||||
Less: Amortization of intangible assets | $ | 1,007 | $ | 1,008 | $ | 1,144 | $ | 2,015 | $ | 1,817 | |||||||||
Adjusted non-interest expense | 25,408 | 25,274 | 26,614 | 50,682 | 49,543 | ||||||||||||||
Adjusted revenue | $ | 39,177 | $ | 39,329 | $ | 37,246 | $ | 78,506 | $ | 70,582 | |||||||||
Efficiency ratio adjusted for non-core charges | 64.85 | % | 64.26 | % | 71.45 | % | 64.56 | % | 70.19 | % |
At or For the Three Months Ended | |||||||||||||||||||
June 30, | March 31, | December 31 | September 30, | June 30, | |||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||
Tangible Equity: | |||||||||||||||||||
Total stockholders' equity, as reported | $ | 437,753 | $ | 428,486 | $ | 419,789 | $ | 424,760 | $ | 418,164 | |||||||||
Less: goodwill and other intangible assets | 147,971 | 148,997 | 149,617 | 151,339 | 151,169 | ||||||||||||||
Tangible equity | $ | 289,782 | $ | 279,489 | $ | 270,172 | $ | 273,421 | $ | 266,995 | |||||||||
Tangible Assets: | |||||||||||||||||||
Total assets, as reported | $ | 3,333,455 | $ | 3,294,929 | $ | 3,258,970 | $ | 3,228,830 | $ | 3,210,425 | |||||||||
Less: goodwill and other intangible assets | 147,971 | 148,997 | 149,617 | 151,339 | 151,169 | ||||||||||||||
Tangible assets | $ | 3,185,484 | $ | 3,145,932 | $ | 3,109,353 | $ | 3,077,491 | $ | 3,059,256 | |||||||||
Tangible Book Value per Common Share: | |||||||||||||||||||
Tangible equity | $ | 289,782 | $ | 279,489 | $ | 270,172 | $ | 273,421 | $ | 266,995 | |||||||||
Common shares outstanding | 18,185,708 | 18,157,932 | 18,404,864 | 18,400,809 | 18,391,575 | ||||||||||||||
Tangible book value per common share | $ | 15.93 | $ | 15.39 | $ | 14.68 | $ | 14.86 | $ | 14.52 | |||||||||
Tangible Equity to Tangible Assets Ratio: | |||||||||||||||||||
Tangible equity | $ | 289,782 | $ | 279,489 | $ | 270,172 | $ | 273,421 | $ | 266,995 | |||||||||
Tangible assets | $ | 3,185,484 | $ | 3,145,932 | $ | 3,109,353 | $ | 3,077,491 | $ | 3,059,256 | |||||||||
Tangible equity to tangible assets | 9.10 | % | 8.88 | % | 8.69 | % | 8.88 | % | 8.73 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Pre-Provision Net Revenue: | |||||||||||||||||||
Income (loss) before income taxes | $ | 11,441 | $ | 11,649 | $ | 7,144 | $ | 23,090 | $ | 6,304 | |||||||||
Add: provision for loan losses | 727 | 955 | 672 | 1,682 | 1,022 | ||||||||||||||
Add: loss on debt extinguishment | 707 | — | — | 707 | 520 | ||||||||||||||
Add: net loss on loans held-for-sale and OREO | — | 1 | 73 | 1 | 81 | ||||||||||||||
Add: net loss on other assets | 97 | 30 | 63 | 127 | 638 | ||||||||||||||
Less: net gain on securities transactions | 767 | 96 | 11 | 863 | 611 | ||||||||||||||
Less: gain on other assets | 35 | — | — | 35 | — | ||||||||||||||
Pre-provision net revenue | $ | 12,170 | $ | 12,539 | $ | 7,941 | $ | 24,709 | $ | 7,954 | |||||||||
Pre-provision net revenue | $ | 12,170 | $ | 12,539 | $ | 7,941 | $ | 24,709 | $ | 7,954 | |||||||||
Total average assets | $ | 3,306,656 | $ | 3,272,635 | $ | 3,219,923 | $ | 3,288,469 | $ | 2,993,339 | |||||||||
Pre-provision net revenue to total average assets (annualized) | 1.48 | % | 1.54 | % | 0.99 | % | 1.51 | % | 0.54 | % |
'!E;G-E D/"$R_7V#Z_0+3
M[Q>8?K_ ]/L$IM\G,/T^@>GW"4S_X7\C3._X'TS_'TS_;X/IU_S?PO0G_U_"
M]#O^!]/_/\!T N*2X0JGRTY&H\ELL=CM!I/)8C&:C,:#/[N);[/#9K7:K!:K
MS62R61TV&PIF4">2B<>:S!SP@>Y&.X\PF5"RXL-L,%ML-O'[H/E@,!KG%VF/
MY!%F3.D"!YBUW6"S@Q<4N%D$K&QSV"Q.GMZ":0T69A@ 5$)!&),/*B"QPS%W_*[":[(RY-#?MLR4#"%PJ&0G!><5$&$D ]-0:G&PLG
MX.LDH@E6>M@5\83=B2"B/ZI$<6M'7!%O/! /\+L@E$@&X;5X@"=RJ>SGZ"\E
M(*!P.'$X(01X*G,(1\(=E0+8B8<#@51""]N]&7]842+@B9EK6V(BP#$.IL0O
M+(BJ,Q$(A%V)8#R0\#.GS"=SR;$0A^N6\.5C";^K$.>8@+P"87806"B)>-J3
M2">=B6@T$HZ[6:11B#P$%263V+LWZ P$?)Z@'S"@08'0CB\20R$0BZ1",0TH
ME\LE8[R/:"@>R0>@WE@NCBF@93V1B);+B5PHUABPD(B,-=\P>B<*@"0!\^
MO:E4,.;S)MG: 6(N9S*!#G@GE(N! -7J6<(C"G=J/HMW;"#B4ESRP:O%)>,\
M^\NI1%*/171=\>JQDJY']&0DGDIUZ*D8W-^@IL#[PH3!(*S,E8:7%U2]LA9,
MX9X.VH*01#*FZZFVA?M] A2"-HN$I0?=@Y(M\Y(J\:D4LC,F;32"?9$!#4
MPE3ZC:!O$K0R[-?EO^OR'W7Y/W3YL[K\-ET>TGE<#&=7-O@%=3*5KA9TA:#Y
M86=2_D%2/BXI]R7E$5GZG(35:530A*!1IM*K=RKC"MF_)KU*XYA)FFV6DKB2
M12:U9ILCR [,-I
MN&;WNX.J->J+>G I!] E%HWY(D ^=QA.-]Q:SJ):E)$FR)@CHZ\OZ@V[PC!D
MS:&I7 ZJ0340A9^J^A4X2:YLSI?S97V^;#00# !R#B= =\$>/5!F7D*"_#3U(B7(S,Q;X^*/8+[R1[%-J)>YI3Y%%PC0BL>
M1UA-A:,^1SK*,0K?VQ>,(? /%>%(0HDF8CB6(2T8=48@TA!4&F05Q9Q1G^IS
M>'TJG@C0H)_?.+A7M) #N@II,1Q;@%8J%0U'HN$ HJ;[HE$ "0:C$(E'HZ%<
M+I(*A/*0+9X<*M_G7J_A7,#EZMC_<+QYFM765D@E2]/K]'SF5\/BI7='(Z
MW9Y ()."CQ (\4_M!UT=/&IA^(5$-):(:(FX6TV$
NT$;=Q*[T'R4!^T"S2(J1Q))-QZVRV,WF/\4UTAHV&W