SUFFOLK BANCORP
|
|||
Date: July 22, 2014
|
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 July 22, 2014
|
FOR IMMEDIATE RELEASE
Contact: Press: Frank D. Filipo
Executive Vice President &
Chief 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
|
2Q 2014 Highlights
|
·Net income increases by 36.2% to $3.8 million versus second quarter 2013
|
·Total loans outstanding increase by 5.8% versus first quarter 2014 and 33.5% versus second quarter 2013
|
·Total demand deposits increase by 6.8% versus first quarter 2014 and 13.2% versus second quarter 2013
|
·Average cost of funds declines to 0.16% in second quarter 2014 from 0.17% in first quarter 2014 and 0.21% in second quarter 2013
|
·Tangible book value per share increases by 12.8% to $15.22 at June 30, 2014 versus comparable 2013 date
|
PRESS RELEASE
July 22, 2014
Page 2 of 14
|
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·
|
Asset Quality – Total non-accrual loans were $14 million or 1.16% of loans outstanding at June 30, 2014 versus $15 million or 1.42% of loans outstanding at December 31, 2013 and $17 million or 1.92% of loans outstanding at June 30, 2013. Total accruing loans delinquent 30 days or more were 0.36% of loans outstanding at June 30, 2014 versus 0.33% of loans outstanding at December 31, 2013 and 0.44% of loans outstanding at June 30, 2013. Net loan recoveries of $491 thousand were recorded in the second quarter of 2014 versus net loan recoveries of $224 thousand in the first quarter of 2014 and net loan charge-offs of $541 thousand in the second quarter of 2013. The allowance for loan losses totaled $18.5 million at June 30, 2014, $17.3 million at December 31, 2013 and $17.3 million at June 30, 2013, representing 1.55%, 1.62% and 1.93% of total loans, respectively, at such dates. The allowance for loan losses as a percentage of non-accrual loans was 133%, 114% and 101% at June 30, 2014, December 31, 2013 and June 30, 2013, respectively. The Company held no other real estate owned ("OREO") at any of the reported periods.
|
·
|
Capital Strength – The Company's capital ratios continue to exceed all regulatory requirements. The Company's Tier 1 leverage ratio was 10.27% at June 30, 2014 versus 9.81% at December 31, 2013 and 9.76% at June 30, 2013. The Company's total risk-based capital ratio was 14.53% at June 30, 2014 versus 15.02% at December 31, 2013 and 15.99% at June 30, 2013. The Company's tangible common equity ratio (non-GAAP financial measure) was 10.06% at June 30, 2014 versus 9.68% at December 31, 2013 and 9.49% at June 30, 2013.
|
·
|
Core Deposits – Core deposits, consisting of demand, N.O.W., saving and money market accounts, totaled $1.3 billion at June 30, 2014 and December 31, 2013 and $1.2 billion at June 30, 2013. Core deposits represented 85%, 85% and 83% of total deposits at June 30, 2014, December 31, 2013 and June 30, 2013, respectively. Demand deposits increased by 7.6% to $676 million at June 30, 2014 versus $629 million at December 31, 2013 and increased by 13.2% versus $598 million at June 30, 2013. Demand deposits represented 43%, 42% and 41% of total deposits at June 30, 2014, December 31, 2013 and June 30, 2013, respectively.
|
PRESS RELEASE
July 22, 2014
Page 3 of 14 |
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·
|
Loans – Loans outstanding at June 30, 2014 increased by 11.8% to $1.20 billion when compared to December 31, 2013 and by 33.5% from $895 million outstanding at June 30, 2013.
|
·
|
Net Interest Margin – Net interest margin was 4.13% in the second quarter of 2014 versus 4.21% in the first quarter of 2014 and 3.83% in the second quarter of 2013. Excluding the receipt of interest income on loans returning to accrual status, the Company's core net interest margin was 4.05% in the second quarter of 2014. The average cost of funds improved to 0.16% in the second quarter of 2014 versus 0.17% in the first quarter of 2014 and 0.21% in the second quarter of 2013.
|
·
|
Performance Ratios – Return on average assets and return on average common stockholders' equity were 0.87% and 8.55%, respectively, in the second quarter of 2014 versus 0.89% and 8.81%, respectively, in the first quarter of 2014, and 0.68% and 6.71%, respectively, in the second quarter of 2013.
|
PRESS RELEASE
July 22, 2014
Page 4 of 14 |
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PRESS RELEASE
July 22, 2014
Page 5 of 14 |
![]() |
PRESS RELEASE
July 22, 2014
Page 6 of 14 |
![]() |
PRESS RELEASE
July 22, 2014
Page 7 of 14 |
![]() |
CONSOLIDATED STATEMENTS OF CONDITION
|
||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||
|
||||||||||||
|
June 30, 2014
|
December 31, 2013
|
June 30, 2013
|
|||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
||||||||||||
Cash and non-interest-bearing deposits due from banks
|
$
|
62,386
|
$
|
69,065
|
$
|
57,423
|
||||||
Interest-bearing deposits due from banks
|
34,540
|
62,287
|
161,973
|
|||||||||
Federal funds sold
|
1,102
|
1,000
|
1,000
|
|||||||||
Total cash and cash equivalents
|
98,028
|
132,352
|
220,396
|
|||||||||
Interest-bearing time deposits in other banks
|
10,000
|
10,000
|
10,000
|
|||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
3,201
|
2,863
|
2,916
|
|||||||||
Investment securities:
|
||||||||||||
Available for sale, at fair value
|
321,574
|
400,780
|
429,843
|
|||||||||
Held to maturity (fair value of $63,280, $12,234 and $8,024, respectively)
|
61,839
|
11,666
|
7,364
|
|||||||||
Total investment securities
|
383,413
|
412,446
|
437,207
|
|||||||||
Loans
|
1,195,496
|
1,068,848
|
895,451
|
|||||||||
Allowance for loan losses
|
18,478
|
17,263
|
17,293
|
|||||||||
Net loans
|
1,177,018
|
1,051,585
|
878,158
|
|||||||||
Loans held for sale
|
573
|
175
|
1,262
|
|||||||||
Premises and equipment, net
|
24,070
|
25,261
|
27,048
|
|||||||||
Bank owned life insurance
|
44,475
|
38,755
|
38,042
|
|||||||||
Deferred taxes
|
10,956
|
13,953
|
16,129
|
|||||||||
Income tax receivable
|
1,373
|
-
|
5,366
|
|||||||||
Accrued interest and loan fees receivable
|
5,607
|
5,441
|
5,022
|
|||||||||
Goodwill and other intangibles
|
2,986
|
2,978
|
2,950
|
|||||||||
Other assets
|
3,539
|
4,007
|
3,801
|
|||||||||
TOTAL ASSETS
|
$
|
1,765,239
|
$
|
1,699,816
|
$
|
1,648,297
|
||||||
|
||||||||||||
LIABILITIES & STOCKHOLDERS' EQUITY
|
||||||||||||
Demand deposits
|
$
|
676,415
|
$
|
628,616
|
$
|
597,735
|
||||||
Saving, N.O.W. and money market deposits
|
662,789
|
656,366
|
621,918
|
|||||||||
Time certificates of $100,000 or more
|
166,901
|
158,337
|
172,988
|
|||||||||
Other time deposits
|
62,098
|
66,742
|
72,813
|
|||||||||
Total deposits
|
1,568,203
|
1,510,061
|
1,465,454
|
|||||||||
Unfunded pension liability
|
75
|
258
|
7,749
|
|||||||||
Capital leases
|
4,563
|
4,612
|
4,655
|
|||||||||
Other liabilities
|
12,093
|
17,687
|
11,407
|
|||||||||
TOTAL LIABILITIES
|
1,584,934
|
1,532,618
|
1,489,265
|
|||||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||||||
STOCKHOLDERS' EQUITY
|
||||||||||||
Common stock (par value $2.50; 15,000,000 shares authorized; issued
|
||||||||||||
13,818,836 shares at June 30, 2014, 13,738,752 shares at December 31, 2013
|
||||||||||||
and June 30, 2013; outstanding 11,653,098 shares at June 30, 2014,
|
||||||||||||
11,573,014 shares at December 31, 2013 and June 30, 2013)
|
34,548
|
34,348
|
34,347
|
|||||||||
Surplus
|
43,515
|
43,280
|
42,899
|
|||||||||
Retained earnings
|
109,764
|
102,273
|
95,033
|
|||||||||
Treasury stock at par (2,165,738 shares)
|
(5,414
|
)
|
(5,414
|
)
|
(5,414
|
)
|
||||||
Accumulated other comprehensive loss, net of tax
|
(2,108
|
)
|
(7,289
|
)
|
(7,833
|
)
|
||||||
TOTAL STOCKHOLDERS' EQUITY
|
180,305
|
167,198
|
159,032
|
|||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$
|
1,765,239
|
$
|
1,699,816
|
$
|
1,648,297
|
PRESS RELEASE
July 22, 2014
Page 8 of 14 |
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CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans and loan fees
|
$
|
13,203
|
$
|
11,250
|
$
|
26,080
|
$
|
22,332
|
||||||||
U.S. Government agency obligations
|
591
|
480
|
1,219
|
813
|
||||||||||||
Obligations of states and political subdivisions
|
1,489
|
1,489
|
2,994
|
2,989
|
||||||||||||
Collateralized mortgage obligations
|
224
|
546
|
474
|
1,381
|
||||||||||||
Mortgage-backed securities
|
500
|
474
|
1,001
|
839
|
||||||||||||
Corporate bonds
|
87
|
96
|
177
|
213
|
||||||||||||
Federal funds sold and interest-bearing deposits due from banks
|
42
|
189
|
88
|
362
|
||||||||||||
Dividends
|
35
|
36
|
73
|
75
|
||||||||||||
Total interest income
|
16,171
|
14,560
|
32,106
|
29,004
|
||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Saving, N.O.W. and money market deposits
|
287
|
294
|
579
|
580
|
||||||||||||
Time certificates of $100,000 or more
|
234
|
294
|
468
|
594
|
||||||||||||
Other time deposits
|
103
|
159
|
214
|
341
|
||||||||||||
Borrowings
|
5
|
-
|
5
|
-
|
||||||||||||
Total interest expense
|
629
|
747
|
1,266
|
1,515
|
||||||||||||
Net interest income
|
15,542
|
13,813
|
30,840
|
27,489
|
||||||||||||
Provision for loan losses
|
250
|
-
|
500
|
-
|
||||||||||||
Net interest income after provision for loan losses
|
15,292
|
13,813
|
30,340
|
27,489
|
||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||
Service charges on deposit accounts
|
944
|
951
|
1,947
|
1,875
|
||||||||||||
Other service charges, commissions and fees
|
892
|
813
|
1,571
|
1,523
|
||||||||||||
Fiduciary fees
|
280
|
263
|
559
|
536
|
||||||||||||
Net (loss) gain on sale of securities available for sale
|
(23
|
)
|
33
|
(23
|
)
|
392
|
||||||||||
Net gain on sale of portfolio loans
|
-
|
3
|
-
|
445
|
||||||||||||
Net gain on sale of mortgage loans originated for sale
|
70
|
305
|
163
|
831
|
||||||||||||
Net gain on sale of premises and equipment
|
110
|
-
|
752
|
-
|
||||||||||||
Income from bank owned life insurance
|
366
|
42
|
720
|
42
|
||||||||||||
Other operating income
|
39
|
54
|
81
|
137
|
||||||||||||
Total non-interest income
|
2,678
|
2,464
|
5,770
|
5,781
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Employee compensation and benefits
|
8,488
|
6,746
|
17,349
|
15,328
|
||||||||||||
Occupancy expense
|
1,411
|
1,658
|
2,846
|
3,202
|
||||||||||||
Equipment expense
|
434
|
557
|
883
|
1,129
|
||||||||||||
Consulting and professional services
|
639
|
573
|
1,190
|
1,146
|
||||||||||||
FDIC assessment
|
268
|
524
|
535
|
1,041
|
||||||||||||
Data processing
|
559
|
749
|
1,132
|
1,216
|
||||||||||||
Accounting and audit fees
|
110
|
178
|
218
|
199
|
||||||||||||
Branch consolidation costs
|
(279
|
)
|
-
|
(449
|
)
|
-
|
||||||||||
Reserve and carrying costs related to Visa shares sold
|
56
|
-
|
115
|
-
|
||||||||||||
Other operating expenses
|
1,466
|
1,707
|
2,642
|
3,232
|
||||||||||||
Total operating expenses
|
13,152
|
12,692
|
26,461
|
26,493
|
||||||||||||
Income before income tax expense
|
4,818
|
3,585
|
9,649
|
6,777
|
||||||||||||
Income tax expense
|
1,047
|
816
|
2,158
|
1,299
|
||||||||||||
NET INCOME
|
$
|
3,771
|
$
|
2,769
|
$
|
7,491
|
$
|
5,478
|
||||||||
|
||||||||||||||||
EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.33
|
$
|
0.24
|
$
|
0.65
|
$
|
0.47
|
||||||||
EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.32
|
$
|
0.24
|
$
|
0.64
|
$
|
0.47
|
PRESS RELEASE
July 22, 2014
Page 9 of 14 |
![]() |
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||||
QUARTERLY TREND
|
||||||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
|||||||||||||||
INTEREST INCOME
|
||||||||||||||||||||
Loans and loan fees
|
$
|
13,203
|
$
|
12,877
|
$
|
12,829
|
$
|
11,464
|
$
|
11,250
|
||||||||||
U.S. Government agency obligations
|
591
|
628
|
607
|
592
|
480
|
|||||||||||||||
Obligations of states and political subdivisions
|
1,489
|
1,505
|
1,509
|
1,477
|
1,489
|
|||||||||||||||
Collateralized mortgage obligations
|
224
|
250
|
295
|
386
|
546
|
|||||||||||||||
Mortgage-backed securities
|
500
|
501
|
514
|
518
|
474
|
|||||||||||||||
Corporate bonds
|
87
|
90
|
91
|
92
|
96
|
|||||||||||||||
Federal funds sold and interest-bearing deposits due from banks
|
42
|
46
|
89
|
140
|
189
|
|||||||||||||||
Dividends
|
35
|
38
|
35
|
36
|
36
|
|||||||||||||||
Total interest income
|
16,171
|
15,935
|
15,969
|
14,705
|
14,560
|
|||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
287
|
292
|
302
|
308
|
294
|
|||||||||||||||
Time certificates of $100,000 or more
|
234
|
234
|
254
|
280
|
294
|
|||||||||||||||
Other time deposits
|
103
|
111
|
126
|
145
|
159
|
|||||||||||||||
Borrowings
|
5
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total interest expense
|
629
|
637
|
682
|
733
|
747
|
|||||||||||||||
Net interest income
|
15,542
|
15,298
|
15,287
|
13,972
|
13,813
|
|||||||||||||||
Provision for loan losses
|
250
|
250
|
1,250
|
-
|
-
|
|||||||||||||||
Net interest income after provision for loan losses
|
15,292
|
15,048
|
14,037
|
13,972
|
13,813
|
|||||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||||||
Service charges on deposit accounts
|
944
|
1,003
|
961
|
964
|
951
|
|||||||||||||||
Other service charges, commissions and fees
|
892
|
679
|
839
|
928
|
813
|
|||||||||||||||
Fiduciary fees
|
280
|
279
|
269
|
279
|
263
|
|||||||||||||||
Net (loss) gain on sale of securities available for sale
|
(23
|
)
|
-
|
8
|
3
|
33
|
||||||||||||||
Net gain on sale of portfolio loans
|
-
|
-
|
-
|
-
|
3
|
|||||||||||||||
Net gain on sale of mortgage loans originated for sale
|
70
|
93
|
89
|
142
|
305
|
|||||||||||||||
Net gain on sale of premises and equipment
|
110
|
642
|
404
|
-
|
-
|
|||||||||||||||
Gain on Visa shares sold
|
-
|
-
|
3,930
|
3,836
|
-
|
|||||||||||||||
Income from bank owned life insurance
|
366
|
354
|
356
|
357
|
42
|
|||||||||||||||
Other operating income
|
39
|
42
|
283
|
78
|
54
|
|||||||||||||||
Total non-interest income
|
2,678
|
3,092
|
7,139
|
6,587
|
2,464
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Employee compensation and benefits
|
8,488
|
8,861
|
9,053
|
8,709
|
6,746
|
|||||||||||||||
Occupancy expense
|
1,411
|
1,435
|
1,709
|
1,585
|
1,658
|
|||||||||||||||
Equipment expense
|
434
|
449
|
665
|
616
|
557
|
|||||||||||||||
Consulting and professional services
|
639
|
551
|
782
|
735
|
573
|
|||||||||||||||
FDIC assessment
|
268
|
267
|
231
|
373
|
524
|
|||||||||||||||
Data processing
|
559
|
573
|
567
|
607
|
749
|
|||||||||||||||
Accounting and audit fees
|
110
|
108
|
153
|
152
|
178
|
|||||||||||||||
Branch consolidation costs
|
(279
|
)
|
(170
|
)
|
1,614
|
460
|
-
|
|||||||||||||
Reserve and carrying costs related to Visa shares sold
|
56
|
59
|
515
|
474
|
-
|
|||||||||||||||
Other operating expenses
|
1,466
|
1,176
|
1,693
|
1,379
|
1,707
|
|||||||||||||||
Total operating expenses
|
13,152
|
13,309
|
16,982
|
15,090
|
12,692
|
|||||||||||||||
Income before income tax expense
|
4,818
|
4,831
|
4,194
|
5,469
|
3,585
|
|||||||||||||||
Income tax expense
|
1,047
|
1,111
|
866
|
1,557
|
816
|
|||||||||||||||
NET INCOME
|
$
|
3,771
|
$
|
3,720
|
$
|
3,328
|
$
|
3,912
|
$
|
2,769
|
||||||||||
|
||||||||||||||||||||
EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.33
|
$
|
0.32
|
$
|
0.29
|
$
|
0.34
|
$
|
0.24
|
||||||||||
EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.32
|
$
|
0.32
|
$
|
0.29
|
$
|
0.34
|
$
|
0.24
|
PRESS RELEASE
July 22, 2014
Page 10 of 14 |
![]() |
STATISTICAL SUMMARY
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
EARNINGS:
|
||||||||||||||||
Earnings per common share - diluted
|
$
|
0.32
|
$
|
0.24
|
$
|
0.64
|
$
|
0.47
|
||||||||
Net income
|
3,771
|
2,769
|
7,491
|
5,478
|
||||||||||||
Net interest income
|
15,542
|
13,813
|
30,840
|
27,489
|
||||||||||||
Cash dividends per common share
|
-
|
-
|
-
|
-
|
||||||||||||
|
||||||||||||||||
AVERAGE BALANCES:
|
||||||||||||||||
Total assets
|
$
|
1,735,301
|
$
|
1,642,946
|
$
|
1,715,443
|
$
|
1,621,667
|
||||||||
Loans
|
1,144,006
|
850,470
|
1,116,283
|
819,799
|
||||||||||||
Investment securities
|
406,732
|
432,880
|
411,035
|
423,289
|
||||||||||||
Interest-earning assets
|
1,603,742
|
1,540,188
|
1,585,499
|
1,518,945
|
||||||||||||
Demand deposits
|
648,957
|
593,437
|
629,100
|
578,286
|
||||||||||||
Core deposits (1)
|
1,304,324
|
1,203,249
|
1,291,216
|
1,183,573
|
||||||||||||
Total deposits
|
1,536,559
|
1,453,039
|
1,520,445
|
1,431,551
|
||||||||||||
Borrowings
|
5,878
|
-
|
2,955
|
12
|
||||||||||||
Stockholders' equity
|
176,849
|
165,451
|
174,036
|
164,910
|
||||||||||||
Common shares outstanding
|
11,575,322
|
11,570,450
|
11,574,174
|
11,568,410
|
||||||||||||
|
||||||||||||||||
FINANCIAL PERFORMANCE RATIOS:
|
||||||||||||||||
Return on average assets
|
0.87
|
%
|
0.68
|
%
|
0.88
|
%
|
0.68
|
%
|
||||||||
Return on average stockholders' equity
|
8.55
|
%
|
6.71
|
%
|
8.68
|
%
|
6.70
|
%
|
||||||||
Average stockholders' equity/average assets
|
10.19
|
%
|
10.07
|
%
|
10.15
|
%
|
10.17
|
%
|
||||||||
Average loans/average deposits
|
74.45
|
%
|
58.53
|
%
|
73.42
|
%
|
57.27
|
%
|
||||||||
Average core deposits/average deposits
|
84.89
|
%
|
82.81
|
%
|
84.92
|
%
|
82.68
|
%
|
||||||||
Average demand deposits/average deposits
|
42.23
|
%
|
40.84
|
%
|
41.38
|
%
|
40.40
|
%
|
||||||||
Net interest margin (FTE)
|
4.13
|
%
|
3.83
|
%
|
4.17
|
%
|
3.89
|
%
|
||||||||
Operating efficiency ratio (2)
|
67.65
|
%
|
73.69
|
%
|
67.81
|
%
|
77.22
|
%
|
||||||||
|
||||||||||||||||
(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 portfolio loans and available for sale securities.
|
||||||||||||||||
|
||||||||||||||||
|
June 30, 2014
|
December 31, 2013
|
June 30, 2013
|
|||||||||||||
CAPITAL RATIOS:
|
||||||||||||||||
Tier 1 leverage ratio
|
10.27
|
%
|
9.81
|
%
|
9.76
|
%
|
||||||||||
Tier 1 risk-based capital ratio
|
13.28
|
%
|
13.77
|
%
|
14.73
|
%
|
||||||||||
Total risk-based capital ratio
|
14.53
|
%
|
15.02
|
%
|
15.99
|
%
|
||||||||||
Tangible common equity ratio (3)
|
10.06
|
%
|
9.68
|
%
|
9.49
|
%
|
||||||||||
|
||||||||||||||||
(3) 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 June 30, 2014, 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
|
$
|
180,305
|
Total assets
|
$
|
1,765,239
|
|||||||||||
Less: intangible assets
|
(2,986
|
)
|
Less: intangible assets
|
(2,986
|
)
|
|||||||||||
Tangible common equity
|
$
|
177,319
|
Tangible assets
|
$
|
1,762,253
|
PRESS RELEASE
July 22, 2014
Page 11 of 14 |
![]() |
STATISTICAL SUMMARY (continued)
|
||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||
|
||||||||||||
|
Periods Ended
|
|||||||||||
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2014
|
2013
|
2013
|
|||||||||
|
||||||||||||
LOAN DISTRIBUTION (1):
|
||||||||||||
Commercial and industrial
|
$
|
181,318
|
$
|
171,199
|
$
|
179,785
|
||||||
Commercial real estate
|
487,901
|
464,560
|
395,499
|
|||||||||
Multifamily
|
245,122
|
184,624
|
82,079
|
|||||||||
Mixed use commercial
|
26,132
|
4,797
|
4,262
|
|||||||||
Real estate construction
|
15,601
|
6,565
|
10,294
|
|||||||||
Residential mortgages
|
176,370
|
169,552
|
150,616
|
|||||||||
Home equity
|
54,197
|
57,112
|
60,951
|
|||||||||
Consumer
|
8,855
|
10,439
|
11,965
|
|||||||||
Total loans
|
$
|
1,195,496
|
$
|
1,068,848
|
$
|
895,451
|
||||||
|
||||||||||||
|
||||||||||||
FUNDING DISTRIBUTION:
|
||||||||||||
Demand
|
$
|
676,415
|
$
|
628,616
|
$
|
597,735
|
||||||
N.O.W.
|
101,914
|
112,507
|
98,115
|
|||||||||
Saving
|
298,811
|
300,497
|
288,417
|
|||||||||
Money market
|
262,064
|
243,362
|
235,386
|
|||||||||
Total core deposits
|
1,339,204
|
1,284,982
|
1,219,653
|
|||||||||
Time
|
228,999
|
225,079
|
245,801
|
|||||||||
Total deposits
|
1,568,203
|
1,510,061
|
1,465,454
|
|||||||||
Borrowings
|
-
|
-
|
-
|
|||||||||
Total funding sources
|
$
|
1,568,203
|
$
|
1,510,061
|
$
|
1,465,454
|
||||||
|
||||||||||||
Total year-to-date cost of funds
|
0.17
|
%
|
0.20
|
%
|
0.21
|
%
|
||||||
|
||||||||||||
|
||||||||||||
EQUITY:
|
||||||||||||
Common shares outstanding
|
11,653,098
|
11,573,014
|
11,573,014
|
|||||||||
Stockholders' equity
|
$
|
180,305
|
$
|
167,198
|
$
|
159,032
|
||||||
Book value per common share
|
15.47
|
14.45
|
13.74
|
|||||||||
Tangible common equity
|
177,319
|
164,220
|
156,082
|
|||||||||
Tangible book value per common share
|
15.22
|
14.19
|
13.49
|
|||||||||
|
||||||||||||
|
||||||||||||
(1) Excluding loans held for sale.
|
PRESS RELEASE
July 22, 2014
Page 12 of 14 |
![]() |
ASSET QUALITY ANALYSIS
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||||||||||
|
2014
|
2014
|
2013
|
2013
|
2013
|
|||||||||||||||
Non-performing assets (1):
|
||||||||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
4,891
|
$
|
4,843
|
$
|
5,014
|
$
|
9,947
|
$
|
9,597
|
||||||||||
Commercial real estate
|
6,776
|
6,936
|
7,492
|
9,505
|
4,227
|
|||||||||||||||
Residential mortgages
|
1,734
|
1,840
|
1,897
|
1,929
|
2,617
|
|||||||||||||||
Home equity
|
501
|
431
|
647
|
1,063
|
664
|
|||||||||||||||
Consumer
|
9
|
9
|
133
|
133
|
78
|
|||||||||||||||
Total non-accrual loans
|
13,911
|
14,059
|
15,183
|
22,577
|
17,183
|
|||||||||||||||
Loans 90 days or more past due and still accruing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total non-performing loans
|
13,911
|
14,059
|
15,183
|
22,577
|
17,183
|
|||||||||||||||
Non-accrual loans held for sale
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
OREO
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total non-performing assets
|
$
|
13,911
|
$
|
14,059
|
$
|
15,183
|
$
|
22,577
|
$
|
17,183
|
||||||||||
Total non-accrual loans/total loans (2)
|
1.16
|
%
|
1.24
|
%
|
1.42
|
%
|
2.26
|
%
|
1.92
|
%
|
||||||||||
Total non-performing loans/total loans (2)
|
1.16
|
%
|
1.24
|
%
|
1.42
|
%
|
2.26
|
%
|
1.92
|
%
|
||||||||||
Total non-performing assets/total assets
|
0.79
|
%
|
0.82
|
%
|
0.89
|
%
|
1.31
|
%
|
1.04
|
%
|
||||||||||
|
||||||||||||||||||||
Troubled debt restructurings (2) (3)
|
$
|
21,994
|
$
|
16,076
|
$
|
16,085
|
$
|
14,950
|
$
|
15,861
|
||||||||||
|
||||||||||||||||||||
Activity in the allowance for loan losses:
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
17,737
|
$
|
17,263
|
$
|
17,619
|
$
|
17,293
|
$
|
17,834
|
||||||||||
Charge-offs
|
(234
|
)
|
(117
|
)
|
(2,136
|
)
|
(141
|
)
|
(1,464
|
)
|
||||||||||
Recoveries
|
725
|
341
|
530
|
467
|
923
|
|||||||||||||||
Net recoveries (charge-offs)
|
491
|
224
|
(1,606
|
)
|
326
|
(541
|
)
|
|||||||||||||
Provision for loan losses
|
250
|
250
|
1,250
|
-
|
-
|
|||||||||||||||
Balance at end of period
|
$
|
18,478
|
$
|
17,737
|
$
|
17,263
|
$
|
17,619
|
$
|
17,293
|
||||||||||
Allowance for loan losses/non-accrual loans (1) (2)
|
133
|
%
|
126
|
%
|
114
|
%
|
78
|
%
|
101
|
%
|
||||||||||
Allowance for loan losses/non-performing loans (1) (2)
|
133
|
%
|
126
|
%
|
114
|
%
|
78
|
%
|
101
|
%
|
||||||||||
Allowance for loan losses/total loans (1) (2)
|
1.55
|
%
|
1.57
|
%
|
1.62
|
%
|
1.76
|
%
|
1.93
|
%
|
||||||||||
|
||||||||||||||||||||
Net (recoveries) charge-offs:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
(11
|
)
|
$
|
(177
|
)
|
$
|
703
|
$
|
(330
|
)
|
$
|
368
|
|||||||
Commercial real estate
|
(485
|
)
|
(12
|
)
|
301
|
58
|
(1
|
)
|
||||||||||||
Residential mortgages
|
28
|
(4
|
)
|
52
|
(4
|
)
|
74
|
|||||||||||||
Home equity
|
(18
|
)
|
(27
|
)
|
533
|
(5
|
)
|
(1
|
)
|
|||||||||||
Consumer
|
(5
|
)
|
(4
|
)
|
17
|
(45
|
)
|
101
|
||||||||||||
Total net (recoveries) charge-offs
|
$
|
(491
|
)
|
$
|
(224
|
)
|
$
|
1,606
|
$
|
(326
|
)
|
$
|
541
|
|||||||
Net (recoveries) charge-offs (annualized)/average loans
|
(0.17
|
%)
|
(0.08
|
%)
|
0.61
|
%
|
(0.14
|
%)
|
0.26
|
%
|
||||||||||
|
||||||||||||||||||||
Delinquencies and non-accrual loans as a % of total loans (1):
|
||||||||||||||||||||
Loans 30 - 59 days past due
|
0.24
|
%
|
0.32
|
%
|
0.29
|
%
|
0.31
|
%
|
0.31
|
%
|
||||||||||
Loans 60 - 89 days past due
|
0.12
|
%
|
0.01
|
%
|
0.04
|
%
|
0.15
|
%
|
0.13
|
%
|
||||||||||
Loans 90 days or more past due and still accruing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total accruing past due loans
|
0.36
|
%
|
0.33
|
%
|
0.33
|
%
|
0.46
|
%
|
0.44
|
%
|
||||||||||
Non-accrual loans
|
1.16
|
%
|
1.24
|
%
|
1.42
|
%
|
2.26
|
%
|
1.92
|
%
|
||||||||||
Total delinquent and non-accrual loans
|
1.52
|
%
|
1.57
|
%
|
1.75
|
%
|
2.72
|
%
|
2.36
|
%
|
||||||||||
|
||||||||||||||||||||
(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 $12,204, $5,445, $5,438, $4,926 and $6,018 at June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively.
|
PRESS RELEASE
July 22, 2014
Page 13 of 14 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Three Months Ended June 30, 2014 and 2013
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
2014
|
2013
|
||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
||||||||||||||||||||
|
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$
|
406,732
|
$
|
3,758
|
3.71
|
%
|
$
|
432,880
|
$
|
3,976
|
3.68
|
%
|
||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
3,442
|
35
|
4.08
|
2,926
|
36
|
4.93
|
||||||||||||||||||
Federal funds sold and interest-bearing deposits
|
49,562
|
42
|
0.34
|
253,912
|
189
|
0.30
|
||||||||||||||||||
Loans (2)
|
1,144,006
|
13,316
|
4.67
|
850,470
|
11,252
|
5.31
|
||||||||||||||||||
Total interest-earning assets
|
1,603,742
|
$
|
17,151
|
4.29
|
%
|
1,540,188
|
$
|
15,453
|
4.02
|
%
|
||||||||||||||
Non-interest-earning assets
|
131,559
|
102,758
|
||||||||||||||||||||||
Total assets
|
$
|
1,735,301
|
$
|
1,642,946
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
$
|
655,367
|
$
|
287
|
0.18
|
%
|
$
|
609,812
|
$
|
294
|
0.19
|
%
|
||||||||||||
Time deposits
|
232,235
|
337
|
0.58
|
249,790
|
453
|
0.73
|
||||||||||||||||||
Total saving and time deposits
|
887,602
|
624
|
0.28
|
859,602
|
747
|
0.35
|
||||||||||||||||||
Borrowings
|
5,878
|
5
|
0.35
|
-
|
-
|
-
|
||||||||||||||||||
Total interest-bearing liabilities
|
893,480
|
629
|
0.28
|
859,602
|
747
|
0.35
|
||||||||||||||||||
Demand deposits
|
648,957
|
593,437
|
||||||||||||||||||||||
Other liabilities
|
16,015
|
24,456
|
||||||||||||||||||||||
Total liabilities
|
1,558,452
|
1,477,495
|
||||||||||||||||||||||
Stockholders' equity
|
176,849
|
165,451
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,735,301
|
$
|
1,642,946
|
||||||||||||||||||||
Total cost of funds
|
0.16
|
%
|
0.21
|
%
|
||||||||||||||||||||
Net interest rate spread
|
4.01
|
%
|
3.67
|
%
|
||||||||||||||||||||
Net interest income/margin
|
16,522
|
4.13
|
%
|
14,706
|
3.83
|
%
|
||||||||||||||||||
Less tax-equivalent basis adjustment
|
(980
|
)
|
(893
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
15,542
|
$
|
13,813
|
||||||||||||||||||||
|
||||||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $867 and $891 in 2014 and 2013, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effects of tax-equivalent basis adjustments of $113 and $2 in 2014 and 2013, respectively.
|
PRESS RELEASE
July 22, 2014
Page 14 of 14 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 and 2013
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
2014
|
2013
|
||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
||||||||||||||||||||
|
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$
|
411,035
|
$
|
7,608
|
3.73
|
%
|
$
|
423,289
|
$
|
8,024
|
3.82
|
%
|
||||||||||||
Federal Reserve Bank, Federal Home Loan Bank and other stock
|
3,155
|
73
|
4.67
|
2,985
|
75
|
5.07
|
||||||||||||||||||
Federal funds sold and interest-bearing deposits
|
55,026
|
88
|
0.32
|
272,872
|
362
|
0.27
|
||||||||||||||||||
Loans (2)
|
1,116,283
|
26,292
|
4.75
|
819,799
|
22,334
|
5.49
|
||||||||||||||||||
Total interest-earning assets
|
1,585,499
|
$
|
34,061
|
4.33
|
%
|
1,518,945
|
$
|
30,795
|
4.09
|
%
|
||||||||||||||
Non-interest-earning assets
|
129,944
|
102,722
|
||||||||||||||||||||||
Total assets
|
$
|
1,715,443
|
$
|
1,621,667
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Saving, N.O.W. and money market deposits
|
$
|
662,116
|
$
|
579
|
0.18
|
%
|
$
|
605,287
|
$
|
580
|
0.19
|
%
|
||||||||||||
Time deposits
|
229,229
|
682
|
0.60
|
247,978
|
935
|
0.76
|
||||||||||||||||||
Total saving and time deposits
|
891,345
|
1,261
|
0.29
|
853,265
|
1,515
|
0.36
|
||||||||||||||||||
Borrowings
|
2,955
|
5
|
0.35
|
12
|
-
|
0.34
|
||||||||||||||||||
Total interest-bearing liabilities
|
894,300
|
1,266
|
0.29
|
853,277
|
1,515
|
0.36
|
||||||||||||||||||
Demand deposits
|
629,100
|
578,286
|
||||||||||||||||||||||
Other liabilities
|
18,007
|
25,194
|
||||||||||||||||||||||
Total liabilities
|
1,541,407
|
1,456,757
|
||||||||||||||||||||||
Stockholders' equity
|
174,036
|
164,910
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,715,443
|
$
|
1,621,667
|
||||||||||||||||||||
Total cost of funds
|
0.17
|
%
|
0.21
|
%
|
||||||||||||||||||||
Net interest rate spread
|
4.04
|
%
|
3.73
|
%
|
||||||||||||||||||||
Net interest income/margin
|
32,795
|
4.17
|
%
|
29,280
|
3.89
|
%
|
||||||||||||||||||
Less tax-equivalent basis adjustment
|
(1,955
|
)
|
(1,791
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
30,840
|
$
|
27,489
|
||||||||||||||||||||
|
||||||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $1,743 and $1,789 in 2014 and 2013, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effects of tax-equivalent basis adjustments of $212 and $2 in 2014 and 2013, respectively.
|