SUFFOLK BANCORP
|
|||
Date: October 24, 2013
|
By:
|
/s/ Brian K. Finneran | |
Brian K. Finneran | |||
Executive Vice President & Chief Financial Officer | |||
Exhibit
Number
|
Description
|
Exhibit 99.1
|
Press release issued by the Company on October 24, 2013
|
FOR IMMEDIATE RELEASE
Contact: Press: Frank D. Filipo
Executive Vice President &
Operating Officer
(631) 208-2400
Investor: Brian K. Finneran
Executive Vice President &
Chief Financial Officer
(631) 208-2400
|
![]() 4 West Second Street
Riverhead, NY 11901
(631) 208-2400 (Voice) - (631) 727-3214 (FAX)
invest@suffolkbancorp.com
|
3Q 2013 Highlights
|
|
|
|
PRESS RELEASE
October 24, 2013
Page 2 of 14
|
![]() |
·
|
Asset Quality – Total non-accrual loans, excluding loans categorized as held-for-sale, were $23 million or 2.26% of loans outstanding at September 30, 2013 versus $16 million or 2.10% of loans outstanding at December 31, 2012 and $14 million or 1.87% of loans outstanding at September 30, 2012. Total accruing loans delinquent 30 days or more decreased to 0.46% of loans outstanding at September 30, 2013 versus 1.81% of loans outstanding at December 31, 2012 and 2.06% of loans outstanding at September 30, 2012. Net loan recoveries of $326 thousand were recorded in the third quarter of 2013 versus net loan charge-offs of $541 thousand in the second quarter of 2013 and net loan charge-offs of $20.2 million in the third quarter of 2012. The allowance for loan losses totaled $18 million at September 30, 2013, $18 million at December 31, 2012 and $21 million at September 30, 2012, representing 1.76%, 2.28% and 2.74% of total loans, respectively, at such dates. The allowance for loan losses as a percentage of non-accrual loans, excluding non-accrual loans categorized as held-for-sale, was 78%, 108% and 146% at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. The Company held no other real estate owned (“OREO”) at September 30, 2013. OREO totaling $1.6 million was held at both December 31, 2012 and September 30, 2012.
|
·
|
Capital Strength – The Company’s capital ratios exceed all regulatory requirements. The Company’s Tier I leverage ratio was 9.66% at September 30, 2013 versus 9.79% at December 31, 2012 and 9.74% at September 30, 2012. The Company’s total risk-based capital ratio was 15.19% at September 30, 2013 versus 18.15% at December 31, 2012 and 18.17% at September 30, 2012. The Company’s tangible common equity ratio (non-GAAP financial measure) was 9.21% at September 30, 2013 versus 9.96% at December 31, 2012 and 9.75% at September 30, 2012. The Company completed a $25 million private placement of its common stock with several institutional investors and certain of the Company’s directors and officers in September 2012.
|
PRESS RELEASE
October 24, 2013
Page 3 of 14 |
![]() |
·
|
Core Deposits – Core deposits, consisting of demand, N.O.W., saving and money market accounts, totaled $1.3 billion at September 30, 2013, $1.2 billion at December 31, 2012 and $1.1 billion at September 30, 2012. Core deposits represented 85%, 83% and 82% of total deposits at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. Demand deposits increased by 5.6% to $650 million at September 30, 2013 versus $615 million at December 31, 2012 and increased by 13.2% versus $574 million at September 30, 2012. Demand deposits represented 42%, 43% and 42% of total deposits at September 30, 2013, December 31, 2012 and September 30, 2012, respectively.
|
·
|
Loans – Loans outstanding at September 30, 2013 increased by 28.0% to $999 million when compared to December 31, 2012 and by 30.4% from $767 million outstanding at September 30, 2012.
|
·
|
Net Interest Margin – Net interest margin was 3.82% in the third quarter of 2013 versus 3.83% in the second quarter of 2013 and 4.09% in the third quarter of 2012. The average cost of funds improved to 0.19% in the third quarter of 2013 versus 0.21% in the second quarter of 2013 and 0.26% in the third quarter of 2012.
|
·
|
Performance Ratios – Return on average assets and return on average common stockholders’ equity were 0.92% and 9.72%, respectively, in the third quarter of 2013 versus 0.68% and 6.71%, respectively, in the second quarter of 2013 and (2.34%) and (25.40%), respectively, in the third quarter of 2012.
|
PRESS RELEASE
October 24, 2013
Page 4 of 14 |
![]() |
PRESS RELEASE
October 24, 2013
Page 5 of 14 |
![]() |
PRESS RELEASE
October 24, 2013
Page 6 of 14 |
![]() |
PRESS RELEASE
October 24, 2013
Page 7 of 14 |
![]() |
CONSOLIDATED STATEMENTS OF CONDITION
|
||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||
September 30, 2013
|
December 31, 2012
|
September 30, 2012
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
||||||||||||
Cash and non-interest-bearing deposits due from banks
|
$ | 62,139 | $ | 80,436 | $ | 57,937 | ||||||
Interest-bearing deposits due from banks
|
147,497 | 304,220 | 344,767 | |||||||||
Federal funds sold
|
1,000 | 1,150 | 1,642 | |||||||||
Total cash and cash equivalents
|
210,636 | 385,806 | 404,346 | |||||||||
Interest-bearing time deposits in other banks
|
10,000 | - | - | |||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
2,916 | 3,043 | 2,368 | |||||||||
Investment securities:
|
||||||||||||
Available for sale, at fair value
|
414,151 | 402,353 | 328,668 | |||||||||
Held to maturity (fair value of $7,793, $8,861 and $9,049, respectively)
|
7,150 | 8,035 | 8,164 | |||||||||
Total investment securities
|
421,301 | 410,388 | 336,832 | |||||||||
Loans
|
999,329 | 780,780 | 766,569 | |||||||||
Allowance for loan losses
|
17,619 | 17,781 | 21,021 | |||||||||
Net loans
|
981,710 | 762,999 | 745,548 | |||||||||
Loans held-for-sale
|
613 | 907 | 7,000 | |||||||||
Premises and equipment, net
|
26,352 | 27,656 | 27,539 | |||||||||
Bank owned life insurance
|
38,399 | - | - | |||||||||
Deferred taxes
|
15,731 | 11,385 | 16,300 | |||||||||
Income tax receivable
|
5,043 | 5,406 | 9,300 | |||||||||
Other real estate owned ("OREO")
|
- | 1,572 | 1,572 | |||||||||
Accrued interest and loan fees receivable
|
5,966 | 4,883 | 5,572 | |||||||||
Goodwill and other intangibles
|
2,983 | 2,670 | 2,537 | |||||||||
Receivable - securities sales not settled
|
- | - | 3,890 | |||||||||
Other assets
|
3,412 | 5,749 | 6,301 | |||||||||
TOTAL ASSETS
|
$ | 1,725,062 | $ | 1,622,464 | $ | 1,569,105 | ||||||
LIABILITIES & STOCKHOLDERS' EQUITY
|
||||||||||||
Demand deposits
|
$ | 649,572 | $ | 615,120 | $ | 573,962 | ||||||
Saving, N.O.W. and money market deposits
|
650,785 | 572,263 | 551,155 | |||||||||
Time certificates of $100,000 or more
|
168,001 | 165,731 | 167,677 | |||||||||
Other time deposits
|
68,892 | 78,000 | 80,320 | |||||||||
Total deposits
|
1,537,250 | 1,431,114 | 1,373,114 | |||||||||
Unfunded pension liability
|
7,733 | 7,781 | 21,324 | |||||||||
Capital leases
|
4,635 | 4,688 | 4,707 | |||||||||
Other liabilities
|
13,774 | 14,896 | 14,680 | |||||||||
TOTAL LIABILITIES
|
1,563,392 | 1,458,479 | 1,413,825 | |||||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||||||
STOCKHOLDERS' EQUITY
|
||||||||||||
Common stock (par value $2.50; 15,000,000 shares authorized; 13,738,752
|
||||||||||||
shares issued at September 30, 2013, 13,732,085 shares issued at
|
||||||||||||
December 31, 2012 and September 30, 2012; 11,573,014 shares
|
||||||||||||
outstanding at September 30, 2013, 11,566,347 shares
|
||||||||||||
outstanding at December 31, 2012 and September 30, 2012)
|
34,348 | 34,330 | 34,330 | |||||||||
Surplus
|
43,069 | 42,628 | 42,476 | |||||||||
Retained earnings
|
98,945 | 89,555 | 87,510 | |||||||||
Treasury stock at par (2,165,738 shares)
|
(5,414 | ) | (5,414 | ) | (5,414 | ) | ||||||
Accumulated other comprehensive (loss) income, net of tax
|
(9,278 | ) | 2,886 | (3,622 | ) | |||||||
TOTAL STOCKHOLDERS' EQUITY
|
161,670 | 163,985 | 155,280 | |||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$ | 1,725,062 | $ | 1,622,464 | $ | 1,569,105 |
PRESS RELEASE
October 24, 2013
Page 8 of 14 |
![]() |
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans and loan fees
|
$ | 11,464 | $ | 11,825 | $ | 33,796 | $ | 37,146 | ||||||||
U.S. Government agency obligations
|
592 | 30 | 1,405 | 34 | ||||||||||||
Obligations of states and political subdivisions
|
1,477 | 1,517 | 4,466 | 4,569 | ||||||||||||
Collateralized mortgage obligations
|
386 | 1,256 | 1,767 | 3,649 | ||||||||||||
Mortgage-backed securities
|
518 | 145 | 1,357 | 171 | ||||||||||||
Corporate bonds
|
92 | 72 | 305 | 88 | ||||||||||||
Federal funds sold and interest-bearing deposits due from banks
|
140 | 168 | 502 | 382 | ||||||||||||
Dividends
|
36 | 28 | 111 | 91 | ||||||||||||
Total interest income
|
14,705 | 15,041 | 43,709 | 46,130 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Saving, N.O.W. and money market deposits
|
308 | 286 | 888 | 906 | ||||||||||||
Time certificates of $100,000 or more
|
280 | 372 | 874 | 1,217 | ||||||||||||
Other time deposits
|
145 | 229 | 486 | 767 | ||||||||||||
Total interest expense
|
733 | 887 | 2,248 | 2,890 | ||||||||||||
Net interest income
|
13,972 | 14,154 | 41,461 | 43,240 | ||||||||||||
Provision for loan losses
|
- | 12,000 | - | 9,600 | ||||||||||||
Net interest income after provision for loan losses
|
13,972 | 2,154 | 41,461 | 33,640 | ||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||
Service charges on deposit accounts
|
964 | 1,022 | 2,839 | 2,972 | ||||||||||||
Other service charges, commissions and fees
|
928 | 927 | 2,451 | 2,523 | ||||||||||||
Fiduciary fees
|
279 | 266 | 815 | 675 | ||||||||||||
Net gain (loss) on sale of securities available for sale
|
3 | (162 | ) | 395 | (162 | ) | ||||||||||
Net gain (loss) on sale of portfolio loans
|
- | (712 | ) | 445 | (712 | ) | ||||||||||
Net gain on sale of mortgage loans originated for sale
|
142 | 341 | 973 | 760 | ||||||||||||
Gain on Visa shares sold
|
3,836 | - | 3,836 | - | ||||||||||||
Income from bank owned life insurance
|
357 | - | 399 | - | ||||||||||||
Other operating income
|
78 | 199 | 215 | 481 | ||||||||||||
Total non-interest income
|
6,587 | 1,881 | 12,368 | 6,537 | ||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Employee compensation and benefits
|
8,709 | 9,486 | 24,037 | 26,945 | ||||||||||||
Occupancy expense
|
1,585 | 1,480 | 4,787 | 4,210 | ||||||||||||
Equipment expense
|
616 | 509 | 1,745 | 1,512 | ||||||||||||
Consulting and professional services
|
735 | 781 | 1,881 | 2,421 | ||||||||||||
FDIC assessment
|
373 | 508 | 1,414 | 1,056 | ||||||||||||
Data processing
|
607 | 637 | 1,823 | 1,731 | ||||||||||||
Accounting and audit fees
|
152 | 167 | 351 | 910 | ||||||||||||
Branch consolidation costs
|
460 | - | 460 | - | ||||||||||||
Other operating expenses
|
1,853 | 3,603 | 5,085 | 7,130 | ||||||||||||
Total operating expenses
|
15,090 | 17,171 | 41,583 | 45,915 | ||||||||||||
Income (loss) before income tax expense (benefit)
|
5,469 | (13,136 | ) | 12,246 | (5,738 | ) | ||||||||||
Income tax expense (benefit)
|
1,557 | (3,975 | ) | 2,856 | (1,945 | ) | ||||||||||
NET INCOME (LOSS)
|
$ | 3,912 | $ | (9,161 | ) | $ | 9,390 | $ | (3,793 | ) | ||||||
EARNINGS (LOSS) PER COMMON SHARE - BASIC
|
$ | 0.34 | $ | (0.94 | ) | $ | 0.81 | $ | (0.39 | ) | ||||||
EARNINGS (LOSS) PER COMMON SHARE - DILUTED
|
$ | 0.34 | $ | (0.94 | ) | $ | 0.81 | $ | (0.39 | ) |
PRESS RELEASE
October 24, 2013
Page 9 of 14 |
![]() |
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||||
QUARTERLY TREND
|
||||||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2013
|
2013
|
2013
|
2012
|
2012
|
||||||||||||||||
INTEREST INCOME
|
||||||||||||||||||||
Loans and loan fees
|
$ | 11,464 | $ | 11,250 | $ | 11,082 | $ | 10,937 | $ | 11,825 | ||||||||||
U.S. Government agency obligations
|
592 | 480 | 333 | 207 | 30 | |||||||||||||||
Obligations of states and political subdivisions
|
1,477 | 1,489 | 1,500 | 1,516 | 1,517 | |||||||||||||||
Collateralized mortgage obligations
|
386 | 546 | 835 | 1,047 | 1,256 | |||||||||||||||
Mortgage-backed securities
|
518 | 474 | 365 | 247 | 145 | |||||||||||||||
Corporate bonds
|
92 | 96 | 117 | 116 | 72 | |||||||||||||||
Federal funds sold and interest-bearing deposits due from banks
|
140 | 189 | 173 | 217 | 168 | |||||||||||||||
Dividends
|
36 | 36 | 39 | 30 | 28 | |||||||||||||||
Total interest income
|
14,705 | 14,560 | 14,444 | 14,317 | 15,041 | |||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
308 | 294 | 286 | 286 | 286 | |||||||||||||||
Time certificates of $100,000 or more
|
280 | 294 | 300 | 350 | 372 | |||||||||||||||
Other time deposits
|
145 | 159 | 182 | 193 | 229 | |||||||||||||||
Total interest expense
|
733 | 747 | 768 | 829 | 887 | |||||||||||||||
Net interest income
|
13,972 | 13,813 | 13,676 | 13,488 | 14,154 | |||||||||||||||
(Credit) provision for loan losses
|
- | - | - | (1,100 | ) | 12,000 | ||||||||||||||
Net interest income after (credit) provision for loan losses
|
13,972 | 13,813 | 13,676 | 14,588 | 2,154 | |||||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||||||
Service charges on deposit accounts
|
964 | 951 | 924 | 960 | 1,022 | |||||||||||||||
Other service charges, commissions and fees
|
928 | 813 | 710 | 992 | 927 | |||||||||||||||
Fiduciary fees
|
279 | 263 | 273 | 270 | 266 | |||||||||||||||
Net gain (loss) on sale of securities available for sale
|
3 | 33 | 359 | (55 | ) | (162 | ) | |||||||||||||
Net gain (loss) on sale of portfolio loans
|
- | 3 | 442 | 1,467 | (712 | ) | ||||||||||||||
Net gain on sale of mortgage loans originated for sale
|
142 | 305 | 526 | 422 | 341 | |||||||||||||||
Gain on Visa shares sold
|
3,836 | - | - | - | - | |||||||||||||||
Income from bank owned life insurance
|
357 | 42 | - | - | - | |||||||||||||||
Other operating income
|
78 | 54 | 83 | 288 | 199 | |||||||||||||||
Total non-interest income
|
6,587 | 2,464 | 3,317 | 4,344 | 1,881 | |||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Employee compensation and benefits
|
8,709 | 6,746 | 8,582 | 8,934 | 9,486 | |||||||||||||||
Occupancy expense
|
1,585 | 1,658 | 1,544 | 1,599 | 1,480 | |||||||||||||||
Equipment expense
|
616 | 557 | 572 | 512 | 509 | |||||||||||||||
Consulting and professional services
|
735 | 573 | 573 | 811 | 781 | |||||||||||||||
FDIC assessment
|
373 | 524 | 517 | 517 | 508 | |||||||||||||||
Data processing
|
607 | 749 | 467 | 554 | 637 | |||||||||||||||
Accounting and audit fees
|
152 | 178 | 21 | 147 | 167 | |||||||||||||||
Branch consolidation costs
|
460 | - | - | - | - | |||||||||||||||
Other operating expenses
|
1,853 | 1,707 | 1,525 | 2,582 | 3,603 | |||||||||||||||
Total operating expenses
|
15,090 | 12,692 | 13,801 | 15,656 | 17,171 | |||||||||||||||
Income (loss) before income tax expense (benefit)
|
5,469 | 3,585 | 3,192 | 3,276 | (13,136 | ) | ||||||||||||||
Income tax expense (benefit)
|
1,557 | 816 | 483 | 1,231 | (3,975 | ) | ||||||||||||||
NET INCOME (LOSS)
|
$ | 3,912 | $ | 2,769 | $ | 2,709 | $ | 2,045 | $ | (9,161 | ) | |||||||||
EARNINGS (LOSS) PER COMMON SHARE - BASIC
|
$ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) | |||||||||
EARNINGS (LOSS) PER COMMON SHARE - DILUTED
|
$ | 0.34 | $ | 0.24 | $ | 0.23 | $ | 0.18 | $ | (0.94 | ) |
PRESS RELEASE
October 24, 2013
Page 10 of 14 |
![]() |
STATISTICAL SUMMARY
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
EARNINGS:
|
||||||||||||||||
Earnings (loss) per common share - diluted
|
$ | 0.34 | $ | (0.94 | ) | $ | 0.81 | $ | (0.39 | ) | ||||||
Net income (loss)
|
3,912 | (9,161 | ) | 9,390 | (3,793 | ) | ||||||||||
Net interest income
|
13,972 | 14,154 | 41,461 | 43,240 | ||||||||||||
Cash dividends per common share
|
- | - | - | - | ||||||||||||
AVERAGE BALANCES:
|
||||||||||||||||
Total assets
|
$ | 1,691,862 | $ | 1,559,869 | $ | 1,645,322 | $ | 1,531,773 | ||||||||
Loans
|
932,578 | 824,148 | 858,078 | 896,655 | ||||||||||||
Investment securities
|
427,867 | 323,630 | 424,832 | 314,031 | ||||||||||||
Interest-earning assets
|
1,548,685 | 1,454,558 | 1,529,240 | 1,438,245 | ||||||||||||
Demand deposits
|
622,342 | 576,825 | 592,907 | 544,871 | ||||||||||||
Core deposits (1)
|
1,265,324 | 1,128,391 | 1,210,897 | 1,092,109 | ||||||||||||
Total deposits
|
1,508,531 | 1,382,161 | 1,457,267 | 1,350,254 | ||||||||||||
Borrowings
|
- | - | 8 | 77 | ||||||||||||
Stockholders' equity
|
159,681 | 143,480 | 163,148 | 138,777 | ||||||||||||
Common shares outstanding
|
11,573,014 | 9,837,959 | 11,569,961 | 9,764,133 | ||||||||||||
FINANCIAL PERFORMANCE RATIOS:
|
||||||||||||||||
Return on average assets
|
0.92 | % | (2.34 | %) | 0.76 | % | (0.33 | %) | ||||||||
Return on average stockholders' equity
|
9.72 | % | (25.40 | %) | 7.70 | % | (3.65 | %) | ||||||||
Average stockholders' equity/average assets
|
9.44 | % | 9.20 | % | 9.92 | % | 9.06 | % | ||||||||
Average loans/average deposits
|
61.82 | % | 59.63 | % | 58.88 | % | 66.41 | % | ||||||||
Average core deposits/average deposits
|
83.88 | % | 81.64 | % | 83.09 | % | 80.88 | % | ||||||||
Average demand deposits/average deposits
|
41.25 | % | 41.73 | % | 40.69 | % | 40.35 | % | ||||||||
Net interest margin (FTE)
|
3.82 | % | 4.09 | % | 3.86 | % | 4.24 | % | ||||||||
Operating efficiency ratio (2)
|
70.02 | % | 95.48 | % | 75.57 | % | 86.70 | % | ||||||||
(1) Total deposits less interest-bearing certificates of deposit.
|
||||||||||||||||
(2) The operating efficiency ratio is calculated by dividing operating expenses, excluding net gains and losses on sales and writedowns of OREO, by the sum of fully taxable equivalent ("FTE") net interest income and non-interest income, excluding net gains and losses on sales of loans and available-for-sale securities.
|
PRESS RELEASE
October 24, 2013
Page 11 of 14 |
![]() |
STATISTICAL SUMMARY (continued)
|
|||||||||||||
(unaudited, dollars in thousands, except per share data)
|
|||||||||||||
Period Ended
|
|||||||||||||
September 30,
|
December 31,
|
September 30,
|
|||||||||||
2013
|
2012
|
2012
|
|||||||||||
CAPITAL RATIOS:
|
|||||||||||||
Tier 1 leverage ratio
|
9.66 | % | 9.79 | % | 9.74 | % | |||||||
Tier 1 risk-based capital ratio
|
13.94 | % | 16.89 | % | 16.90 | % | |||||||
Total risk-based capital ratio
|
15.19 | % | 18.15 | % | 18.17 | % | |||||||
Tangible common equity ratio (1)
|
9.21 | % | 9.96 | % | 9.75 | % | |||||||
EQUITY:
|
|||||||||||||
Common shares outstanding
|
11,573,014 | 11,566,347 | 11,566,347 | ||||||||||
Stockholders' equity
|
$ | 161,670 | $ | 163,985 | $ | 155,280 | |||||||
Book value per common share
|
13.97 | 14.18 | 13.43 | ||||||||||
Tangible common equity
|
158,687 | 161,315 | 152,743 | ||||||||||
Tangible book value per common share
|
13.71 | 13.95 | 13.21 | ||||||||||
LOAN DISTRIBUTION (2):
|
|||||||||||||
Commercial and industrial
|
$ | 172,386 | $ | 168,709 | $ | 177,077 | |||||||
Commercial real estate
|
448,728 | 360,010 | 337,933 | ||||||||||
Multifamily
|
136,983 | 9,261 | 2,648 | ||||||||||
Real estate construction
|
8,134 | 15,469 | 23,781 | ||||||||||
Residential mortgages (1st and 2nd liens)
|
162,658 | 146,575 | 138,934 | ||||||||||
Home equity
|
59,100 | 66,468 | 70,276 | ||||||||||
Consumer
|
11,340 | 14,288 | 15,920 | ||||||||||
Total loans
|
$ | 999,329 | $ | 780,780 | $ | 766,569 | |||||||
(1) The ratio of tangible common equity to tangible assets, or TCE ratio, is calculated by dividing total common stockholders’ equity by total assets, after reducing both amounts by intangible assets. The TCE ratio is not required by GAAP or by applicable bank regulatory requirements, but is a metric used by management to evaluate the adequacy of our capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. With respect to the calculation of the actual unaudited TCE ratio as of September 30, 2013, reconciliations of tangible common equity to GAAP total common stockholders’ equity and tangible assets to GAAP total assets are set forth below:
|
|||||||||||||
Total stockholders' equity
|
$ | 161,670 |
Total assets
|
$1,725,062
|
|||||||||
Less: intangible assets
|
(2,983 | ) |
Less: intangible assets
|
(2,983)
|
|||||||||
Tangible common equity
|
$ | 158,687 |
Tangible assets
|
$1,722,079
|
|||||||||
(2) Excluding loans held for sale.
|
PRESS RELEASE
October 24, 2013
Page 12 of 14 |
![]() |
ASSET QUALITY ANALYSIS
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2013
|
2013
|
2013
|
2012
|
2012
|
||||||||||||||||
Non-performing assets (1):
|
||||||||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial and industrial
|
$ | 9,947 | $ | 9,597 | $ | 6,746 | $ | 6,529 | $ | 5,963 | ||||||||||
Commercial real estate
|
9,505 | 4,227 | 3,972 | 5,192 | 5,893 | |||||||||||||||
Real estate construction
|
- | - | 840 | 1,961 | 1,334 | |||||||||||||||
Residential mortgages (1st and 2nd liens)
|
1,929 | 2,617 | 2,336 | 2,466 | 1,031 | |||||||||||||||
Home equity
|
1,063 | 664 | 514 | 266 | - | |||||||||||||||
Consumer
|
133 | 78 | 12 | 21 | 135 | |||||||||||||||
Total non-accrual loans
|
22,577 | 17,183 | 14,420 | 16,435 | 14,356 | |||||||||||||||
Loans 90 days or more past due and still accruing
|
- | - | - | - | - | |||||||||||||||
Total non-performing loans
|
22,577 | 17,183 | 14,420 | 16,435 | 14,356 | |||||||||||||||
Non-accrual loans held-for-sale
|
- | - | - | 907 | 7,000 | |||||||||||||||
OREO
|
- | - | 372 | 1,572 | 1,572 | |||||||||||||||
Total non-performing assets
|
$ | 22,577 | $ | 17,183 | $ | 14,792 | $ | 18,914 | $ | 22,928 | ||||||||||
Total non-accrual loans/total loans (2)
|
2.26 | % | 1.92 | % | 1.75 | % | 2.10 | % | 1.87 | % | ||||||||||
Total non-performing loans/total loans (2)
|
2.26 | % | 1.92 | % | 1.75 | % | 2.10 | % | 1.87 | % | ||||||||||
Total non-performing assets/total assets
|
1.31 | % | 1.04 | % | 0.93 | % | 1.17 | % | 1.46 | % | ||||||||||
Troubled debt restructurings (2) (3)
|
$ | 14,950 | $ | 15,861 | $ | 16,237 | $ | 16,604 | $ | 15,298 | ||||||||||
Activity in the allowance for loan losses:
|
||||||||||||||||||||
Balance at beginning of period
|
$ | 17,293 | $ | 17,834 | $ | 17,781 | $ | 21,021 | $ | 29,227 | ||||||||||
Charge-offs
|
(141 | ) | (1,464 | ) | (359 | ) | (2,526 | ) | (21,338 | ) | ||||||||||
Recoveries
|
467 | 923 | 412 | 386 | 1,132 | |||||||||||||||
Net recoveries (charge-offs)
|
326 | (541 | ) | 53 | (2,140 | ) | (20,206 | ) | ||||||||||||
(Credit) provision for loan losses
|
- | - | - | (1,100 | ) | 12,000 | ||||||||||||||
Balance at end of period
|
$ | 17,619 | $ | 17,293 | $ | 17,834 | $ | 17,781 | $ | 21,021 | ||||||||||
Allowance for loan losses/non-accrual loans (1) (2)
|
78 | % | 101 | % | 124 | % | 108 | % | 146 | % | ||||||||||
Allowance for loan losses/non-performing loans (1) (2)
|
78 | % | 101 | % | 124 | % | 108 | % | 146 | % | ||||||||||
Allowance for loan losses/total loans (1) (2)
|
1.76 | % | 1.93 | % | 2.16 | % | 2.28 | % | 2.74 | % | ||||||||||
Net (recoveries) charge-offs:
|
||||||||||||||||||||
Commercial and industrial
|
$ | (330 | ) | $ | 368 | $ | 49 | $ | 349 | $ | 6,227 | |||||||||
Commercial real estate
|
58 | (1 | ) | (72 | ) | - | 8,102 | |||||||||||||
Real estate construction
|
- | - | - | 1,548 | 1,863 | |||||||||||||||
Residential mortgages (1st and 2nd liens)
|
(4 | ) | 74 | (1 | ) | 253 | 2,773 | |||||||||||||
Home equity
|
(5 | ) | (1 | ) | (1 | ) | - | 1,114 | ||||||||||||
Consumer
|
(45 | ) | 101 | (28 | ) | (10 | ) | 127 | ||||||||||||
Total net (recoveries) charge-offs
|
$ | (326 | ) | $ | 541 | $ | (53 | ) | $ | 2,140 | $ | 20,206 | ||||||||
Net (recoveries) charge-offs (annualized)/average loans
|
(0.14 | %) | 0.26 | % | (0.03 | %) | 1.12 | % | 9.75 | % | ||||||||||
Delinquencies and non-accrual loans as a % of total loans (1):
|
||||||||||||||||||||
Loans 30 - 59 days past due
|
0.31 | % | 0.31 | % | 0.69 | % | 1.59 | % | 0.99 | % | ||||||||||
Loans 60 - 89 days past due
|
0.15 | % | 0.13 | % | 0.11 | % | 0.22 | % | 1.07 | % | ||||||||||
Loans 90 days or more past due and still accruing
|
- | - | - | - | - | |||||||||||||||
Total accruing past due loans
|
0.46 | % | 0.44 | % | 0.80 | % | 1.81 | % | 2.06 | % | ||||||||||
Non-accrual loans
|
2.26 | % | 1.92 | % | 1.75 | % | 2.10 | % | 1.87 | % | ||||||||||
Total delinquent and non-accrual loans
|
2.72 | % | 2.36 | % | 2.55 | % | 3.91 | % | 3.93 | % | ||||||||||
(1) At period end.
|
||||||||||||||||||||
(2) Excluding loans held-for-sale.
|
||||||||||||||||||||
(3) Troubled debt restructurings on non-accrual status included here and also included in total non-accrual loans are $4,926, $6,018, $5,990, $6,650 and $5,306 at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.
|
PRESS RELEASE
October 24, 2013
Page 13 of 14 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 and 2012
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$ | 427,867 | $ | 3,945 | 3.66 | % | $ | 323,630 | $ | 3,807 | 4.68 | % | ||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
2,916 | 36 | 4.90 | 2,368 | 28 | 4.70 | ||||||||||||||||||
Federal funds sold and interest-bearing deposits
|
185,324 | 140 | 0.30 | 304,412 | 168 | 0.22 | ||||||||||||||||||
Loans (2)
|
932,578 | 11,506 | 4.89 | 824,148 | 11,825 | 5.71 | ||||||||||||||||||
Total interest-earning assets
|
1,548,685 | $ | 15,627 | 4.00 | % | 1,454,558 | $ | 15,828 | 4.33 | % | ||||||||||||||
Non-interest-earning assets
|
143,177 | 105,311 | ||||||||||||||||||||||
Total assets
|
$ | 1,691,862 | $ | 1,559,869 | ||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
$ | 642,982 | $ | 308 | 0.19 | % | $ | 551,566 | $ | 286 | 0.21 | % | ||||||||||||
Time deposits
|
243,207 | 425 | 0.69 | 253,770 | 601 | 0.94 | ||||||||||||||||||
Total saving and time deposits
|
886,189 | 733 | 0.33 | 805,336 | 887 | 0.44 | ||||||||||||||||||
Borrowings
|
- | - | - | - | - | - | ||||||||||||||||||
Total interest-bearing liabilities
|
886,189 | 733 | 0.33 | 805,336 | 887 | 0.44 | ||||||||||||||||||
Demand deposits
|
622,342 | 576,825 | ||||||||||||||||||||||
Other liabilities
|
23,650 | 34,228 | ||||||||||||||||||||||
Total liabilities
|
1,532,181 | 1,416,389 | ||||||||||||||||||||||
Stockholders' equity
|
159,681 | 143,480 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,691,862 | $ | 1,559,869 | ||||||||||||||||||||
Total cost of funds
|
0.19 | % | 0.26 | % | ||||||||||||||||||||
Net interest rate spread
|
3.67 | % | 3.89 | % | ||||||||||||||||||||
Net interest income/margin
|
14,894 | 3.82 | % | 14,941 | 4.09 | % | ||||||||||||||||||
Less tax-equivalent basis adjustment
|
(922 | ) | (787 | ) | ||||||||||||||||||||
Net interest income
|
$ | 13,972 | $ | 14,154 | ||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $880 and $787 in 2013 and 2012, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effect of a tax-equivalent basis adjustment of $42 in 2013.
|
PRESS RELEASE
October 24, 2013
Page 14 of 14 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 and 2012
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$ | 424,832 | $ | 11,965 | 3.77 | % | $ | 314,031 | $ | 10,885 | 4.63 | % | ||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
2,961 | 111 | 5.01 | 2,436 | 91 | 4.99 | ||||||||||||||||||
Federal funds sold and interest-bearing deposits
|
243,369 | 502 | 0.28 | 225,123 | 382 | 0.23 | ||||||||||||||||||
Loans (2)
|
858,078 | 33,840 | 5.27 | 896,655 | 37,146 | 5.53 | ||||||||||||||||||
Total interest-earning assets
|
1,529,240 | $ | 46,418 | 4.06 | % | 1,438,245 | $ | 48,504 | 4.50 | % | ||||||||||||||
Non-interest-earning assets
|
116,082 | 93,528 | ||||||||||||||||||||||
Total assets
|
$ | 1,645,322 | $ | 1,531,773 | ||||||||||||||||||||
Liabilities and Stockholders' Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
$ | 617,990 | $ | 888 | 0.19 | % | $ | 547,238 | $ | 906 | 0.22 | % | ||||||||||||
Time deposits
|
246,370 | 1,360 | 0.74 | 258,145 | 1,984 | 1.03 | ||||||||||||||||||
Total saving and time deposits
|
864,360 | 2,248 | 0.35 | 805,383 | 2,890 | 0.48 | ||||||||||||||||||
Borrowings
|
8 | - | - | 77 | - | - | ||||||||||||||||||
Total interest-bearing liabilities
|
864,368 | 2,248 | 0.35 | 805,460 | 2,890 | 0.48 | ||||||||||||||||||
Demand deposits
|
592,907 | 544,871 | ||||||||||||||||||||||
Other liabilities
|
24,899 | 42,665 | ||||||||||||||||||||||
Total liabilities
|
1,482,174 | 1,392,996 | ||||||||||||||||||||||
Stockholders' equity
|
163,148 | 138,777 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,645,322 | $ | 1,531,773 | ||||||||||||||||||||
Total cost of funds
|
0.21 | % | 0.29 | % | ||||||||||||||||||||
Net interest rate spread
|
3.71 | % | 4.03 | % | ||||||||||||||||||||
Net interest income/margin
|
44,170 | 3.86 | % | 45,614 | 4.24 | % | ||||||||||||||||||
Less tax-equivalent basis adjustment
|
(2,709 | ) | (2,374 | ) | ||||||||||||||||||||
Net interest income
|
$ | 41,461 | $ | 43,240 | ||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $2,665 and $2,374 in 2013 and 2012, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effect of a tax-equivalent basis adjustment of $44 in 2013.
|