SUFFOLK BANCORP
|
|||
Date: October 21, 2015
|
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 21, 2015
|
FOR IMMEDIATE RELEASE
Investor and Press Contact:
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
|
Third Quarter 2015 Highlights
|
·Net income increased by 31.7% to $4.9 million versus third quarter 2014
|
·Total loans outstanding increased by 5.6% versus second quarter 2015 and 23.6% versus third quarter 2014
|
·Demand deposits, representing 45% of total deposits at September 30, 2015, increased by 4.5% versus second quarter 2015 and 17.6% versus third quarter 2014
|
·Maintained exceptionally low cost of funds of 0.18% during third quarter 2015
|
·Core operating efficiency ratio improved to 61.8% versus 69.2% in third quarter 2014
|
·Tangible book value per share increased by 6.3% to $16.42 at September 30, 2015 versus comparable 2014 date
|
PRESS RELEASE
October 21, 2015
Page 2 of 17 |
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PRESS RELEASE
October 21, 2015
Page 3 of 17 |
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·
|
Asset Quality – Total non-accrual loans were $7.5 million or 0.48% of loans outstanding at September 30, 2015 versus $13.0 million or 0.96% of loans outstanding at December 31, 2014 and $14.7 million or 1.16% of loans outstanding at September 30, 2014. Total accruing loans delinquent 30 days or more were 0.06% of loans outstanding at September 30, 2015 as compared to 0.10% of loans outstanding at December 31, 2014 and 0.25% of loans outstanding at September 30, 2014. The Company recorded net loan charge-offs of $86 thousand in the third quarter of 2015 versus net loan recoveries of $726 thousand in the second quarter of 2015 and net loan recoveries of $72 thousand in the third quarter of 2014. The allowance for loan losses totaled $20.3 million at September 30, 2015 versus $19.2 million at December 31, 2014 and $18.8 million at September 30, 2014, representing 1.30%, 1.42% and 1.49% of total loans, respectively, at such dates. The allowance for loan losses as a percentage of non-accrual loans was 271%, 148% and 128% at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. The Company held no other real estate owned ("OREO") during 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 9.95% at September 30, 2015 versus 10.04% at December 31, 2014 and 10.21% at September 30, 2014. The Company's total risk-based capital ratio was 13.21% at September 30, 2015 as compared to 13.35% at December 31, 2014 and 14.09% at September 30, 2014. The Company's tangible common equity to tangible assets ratio ("TCE ratio") (non-GAAP financial measure) was 9.38% at September 30, 2015 versus 9.50% at December 31, 2014 and 10.07% at September 30, 2014.
|
·
|
Core Deposits – Core deposits, consisting of demand, N.O.W., savings and money market accounts, totaled $1.6 billion at September 30, 2015 versus $1.3 billion at December 31, 2014 and $1.4 billion at September 30, 2014. Core deposits represented 87%, 86% and 86% of total deposits at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Demand deposits were $801 million at September 30, 2015, reflecting increases of 17.2% and 17.6% from $684 million and $681 million at December 31, 2014 and September 30, 2014, respectively. Demand deposits represented 45%, 44% and 43% of total deposits at September 30, 2015, December 31, 2014 and September 30, 2014, respectively.
|
·
|
Loans – Loans outstanding at September 30, 2015 increased by $297 million, or 23.6%, to $1.56 billion when compared to September 30, 2014 and increased by $204 million, or 15.1%, when compared to December 31, 2014.
|
·
|
Net Interest Margin – Net interest margin was 3.89% in the third quarter of 2015 versus 4.21% in the second quarter of 2015 and 4.00% in the third quarter of 2014. Adjusting for the impact of net non-accrual interest received in each period, the Company's core net interest margin was 3.85% in the third quarter of 2015 as compared to 3.99% in the second quarter of 2015 and 3.97% in the third quarter of 2014. (See Non-GAAP Disclosure contained herein.) The average cost of funds was 0.18% in the third quarter of 2015 versus 0.18% in the second quarter of 2015 and 0.16% in the third quarter of 2014.
|
·
|
Performance Ratios – Return on average assets and return on average common stockholders' equity were 0.97% and 10.15%, respectively, in the third quarter of 2015 versus 1.06% and 10.88%, respectively, in the second quarter of 2015, and 0.84% and 8.18%, respectively, in the third quarter of 2014.
|
PRESS RELEASE
October 21, 2015
Page 4 of 17 |
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PRESS RELEASE
October 21, 2015
Page 5 of 17 |
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PRESS RELEASE
October 21, 2015
Page 6 of 17 |
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PRESS RELEASE
October 21, 2015
Page 7 of 17 |
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Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
(in thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
CORE NET INCOME:
|
||||||||||||||||
Net income, as reported
|
$
|
4,923
|
$
|
3,738
|
$
|
14,050
|
$
|
11,229
|
||||||||
Less:
|
||||||||||||||||
Gain on sale of branch building and parking lot
|
-
|
-
|
-
|
(746
|
)
|
|||||||||||
Branch consolidation credits
|
-
|
-
|
-
|
(449
|
)
|
|||||||||||
Net non-accrual interest adjustment
|
(199
|
)
|
(117
|
)
|
(1,173
|
)
|
(789
|
)
|
||||||||
Total adjustments, before income taxes
|
(199
|
)
|
(117
|
)
|
(1,173
|
)
|
(1,984
|
)
|
||||||||
Adjustment for reported effective income tax rate
|
(55
|
)
|
(22
|
)
|
(293
|
)
|
(422
|
)
|
||||||||
Total adjustments, after income taxes
|
(144
|
)
|
(95
|
)
|
(880
|
)
|
(1,562
|
)
|
||||||||
Core net income
|
$
|
4,779
|
$
|
3,643
|
$
|
13,170
|
$
|
9,667
|
||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
($ in thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||||||||||||||
CORE NET INTEREST INCOME/MARGIN:
|
||||||||||||||||||||||||||||||||
Net interest income/margin (FTE)
|
$
|
18,220
|
3.89
|
%
|
$
|
16,515
|
4.00
|
%
|
$
|
54,475
|
4.02
|
%
|
$
|
49,310
|
4.11
|
%
|
||||||||||||||||
Net non-accrual interest adjustment
|
(199
|
)
|
(0.04
|
%)
|
(117
|
)
|
(0.03
|
%)
|
(1,173
|
)
|
(0.09
|
%)
|
(789
|
)
|
(0.07
|
%)
|
||||||||||||||||
Core net interest income/margin (FTE)
|
$
|
18,021
|
3.85
|
%
|
$
|
16,398
|
3.97
|
%
|
$
|
53,302
|
3.93
|
%
|
$
|
48,521
|
4.04
|
%
|
||||||||||||||||
PRESS RELEASE
October 21, 2015
Page 8 of 17 |
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PRESS RELEASE
October 21, 2015
Page 9 of 17 |
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CONSOLIDATED STATEMENTS OF CONDITION
|
||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||
September 30, 2015
|
December 31, 2014
|
September 30, 2014
|
||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
||||||||||||
Cash and non-interest-bearing deposits due from banks
|
$
|
79,049
|
$
|
41,140
|
$
|
49,618
|
||||||
Interest-bearing deposits due from banks
|
18,751
|
13,376
|
20,534
|
|||||||||
Federal funds sold
|
-
|
1,000
|
1,000
|
|||||||||
Total cash and cash equivalents
|
97,800
|
55,516
|
71,152
|
|||||||||
Interest-bearing time deposits in other banks
|
-
|
10,000
|
10,000
|
|||||||||
Federal Reserve and Federal Home Loan Bank stock and other investments
|
5,581
|
8,600
|
3,200
|
|||||||||
Investment securities:
|
||||||||||||
Available for sale, at fair value
|
261,232
|
298,670
|
308,589
|
|||||||||
Held to maturity (fair value $69,402, $64,796 and $63,942, respectively)
|
66,427
|
62,270
|
62,323
|
|||||||||
Total investment securities
|
327,659
|
360,940
|
370,912
|
|||||||||
Loans
|
1,559,520
|
1,355,427
|
1,262,061
|
|||||||||
Allowance for loan losses
|
20,315
|
19,200
|
18,800
|
|||||||||
Net loans
|
1,539,205
|
1,336,227
|
1,243,261
|
|||||||||
Loans held for sale
|
745
|
26,495
|
-
|
|||||||||
Premises and equipment, net
|
23,144
|
23,641
|
23,901
|
|||||||||
Bank owned life insurance
|
46,027
|
45,109
|
44,791
|
|||||||||
Deferred taxes
|
14,422
|
15,714
|
13,217
|
|||||||||
Accrued interest and loan fees receivable
|
6,349
|
5,676
|
6,227
|
|||||||||
Goodwill and other intangibles
|
2,915
|
2,991
|
2,987
|
|||||||||
Other assets
|
2,997
|
4,374
|
3,394
|
|||||||||
TOTAL ASSETS
|
$
|
2,066,844
|
$
|
1,895,283
|
$
|
1,793,042
|
||||||
LIABILITIES & STOCKHOLDERS' EQUITY
|
||||||||||||
Demand deposits
|
$
|
801,212
|
$
|
683,634
|
$
|
681,306
|
||||||
Savings, N.O.W. and money market deposits
|
759,080
|
653,667
|
675,037
|
|||||||||
Subtotal core deposits
|
1,560,292
|
1,337,301
|
1,356,343
|
|||||||||
Time deposits
|
235,539
|
218,759
|
224,426
|
|||||||||
Total deposits
|
1,795,831
|
1,556,060
|
1,580,769
|
|||||||||
Borrowings
|
50,000
|
130,000
|
10,000
|
|||||||||
Unfunded pension liability
|
5,969
|
6,303
|
-
|
|||||||||
Capital leases
|
4,426
|
4,511
|
4,538
|
|||||||||
Other liabilities
|
14,078
|
15,676
|
14,538
|
|||||||||
TOTAL LIABILITIES
|
1,870,304
|
1,712,550
|
1,609,845
|
|||||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||||||
STOCKHOLDERS' EQUITY
|
||||||||||||
Common stock (par value $2.50; 15,000,000 shares authorized;
|
||||||||||||
issued 13,956,250, 13,836,508 and 13,833,328 shares, respectively,
|
||||||||||||
at September 30, 2015, December 31, 2014 and September 30, 2014;
|
||||||||||||
outstanding 11,790,512, 11,670,770 and 11,667,590 shares, respectively,
|
||||||||||||
at September 30, 2015, December 31, 2014 and September 30, 2014)
|
34,890
|
34,591
|
34,583
|
|||||||||
Surplus
|
45,656
|
44,230
|
43,934
|
|||||||||
Retained earnings
|
127,636
|
116,169
|
112,803
|
|||||||||
Treasury stock at par (2,165,738 shares)
|
(5,414
|
)
|
(5,414
|
)
|
(5,414
|
)
|
||||||
Accumulated other comprehensive loss, net of tax
|
(6,228
|
)
|
(6,843
|
)
|
(2,709
|
)
|
||||||
TOTAL STOCKHOLDERS' EQUITY
|
196,540
|
182,733
|
183,197
|
|||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$
|
2,066,844
|
$
|
1,895,283
|
$
|
1,793,042
|
||||||
PRESS RELEASE
October 21, 2015
Page 10 of 17 |
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CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans and loan fees
|
$
|
15,798
|
$
|
13,396
|
$
|
46,362
|
$
|
39,476
|
||||||||
U.S. Government agency obligations
|
530
|
553
|
1,602
|
1,772
|
||||||||||||
Obligations of states and political subdivisions
|
1,114
|
1,428
|
3,725
|
4,422
|
||||||||||||
Collateralized mortgage obligations
|
149
|
198
|
507
|
672
|
||||||||||||
Mortgage-backed securities
|
441
|
474
|
1,329
|
1,475
|
||||||||||||
Corporate bonds
|
96
|
38
|
179
|
215
|
||||||||||||
Federal funds sold, securities purchased under agreements to
|
||||||||||||||||
resell and interest-bearing deposits due from banks
|
7
|
35
|
50
|
123
|
||||||||||||
Dividends
|
71
|
42
|
221
|
115
|
||||||||||||
Total interest income
|
18,206
|
16,164
|
53,975
|
48,270
|
||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Savings, N.O.W. and money market deposits
|
338
|
291
|
906
|
870
|
||||||||||||
Time deposits
|
396
|
322
|
1,043
|
1,004
|
||||||||||||
Borrowings
|
94
|
2
|
310
|
7
|
||||||||||||
Total interest expense
|
828
|
615
|
2,259
|
1,881
|
||||||||||||
Net interest income
|
17,378
|
15,549
|
51,716
|
46,389
|
||||||||||||
Provision for loan losses
|
350
|
250
|
600
|
750
|
||||||||||||
Net interest income after provision for loan losses
|
17,028
|
15,299
|
51,116
|
45,639
|
||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||
Service charges on deposit accounts
|
749
|
887
|
2,319
|
2,834
|
||||||||||||
Other service charges, commissions and fees
|
759
|
778
|
2,032
|
2,349
|
||||||||||||
Fiduciary fees
|
-
|
265
|
-
|
824
|
||||||||||||
Net gain (loss) on sale of securities available for sale
|
133
|
11
|
319
|
(12
|
)
|
|||||||||||
Net gain on sale of portfolio loans
|
370
|
217
|
568
|
217
|
||||||||||||
Net gain on sale of mortgage loans originated for sale
|
85
|
51
|
290
|
214
|
||||||||||||
Net gain on sale of premises and equipment
|
-
|
-
|
-
|
752
|
||||||||||||
Income from bank owned life insurance
|
306
|
316
|
918
|
1,036
|
||||||||||||
Other operating income
|
25
|
25
|
122
|
106
|
||||||||||||
Total non-interest income
|
2,427
|
2,550
|
6,568
|
8,320
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Employee compensation and benefits
|
7,980
|
8,628
|
25,102
|
25,977
|
||||||||||||
Occupancy expense
|
1,401
|
1,295
|
4,236
|
4,141
|
||||||||||||
Equipment expense
|
410
|
418
|
1,199
|
1,301
|
||||||||||||
Consulting and professional services
|
609
|
693
|
1,491
|
1,883
|
||||||||||||
FDIC assessment
|
226
|
202
|
802
|
737
|
||||||||||||
Data processing
|
506
|
549
|
1,590
|
1,681
|
||||||||||||
Branch consolidation credits
|
-
|
-
|
-
|
(449
|
)
|
|||||||||||
Other operating expenses
|
1,536
|
1,451
|
4,530
|
4,426
|
||||||||||||
Total operating expenses
|
12,668
|
13,236
|
38,950
|
39,697
|
||||||||||||
Income before income tax expense
|
6,787
|
4,613
|
18,734
|
14,262
|
||||||||||||
Income tax expense
|
1,864
|
875
|
4,684
|
3,033
|
||||||||||||
NET INCOME
|
$
|
4,923
|
$
|
3,738
|
$
|
14,050
|
$
|
11,229
|
||||||||
EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.42
|
$
|
0.32
|
$
|
1.20
|
$
|
0.97
|
||||||||
EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.42
|
$
|
0.32
|
$
|
1.19
|
$
|
0.96
|
PRESS RELEASE
October 21, 2015
Page 11 of 17 |
![]() |
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
QUARTERLY TREND
|
||||||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2015
|
2015
|
2015
|
2014
|
2014
|
||||||||||||||||
INTEREST INCOME
|
||||||||||||||||||||
Loans and loan fees
|
$
|
15,798
|
$
|
15,995
|
$
|
14,569
|
$
|
14,094
|
$
|
13,396
|
||||||||||
U.S. Government agency obligations
|
530
|
531
|
541
|
548
|
553
|
|||||||||||||||
Obligations of states and political subdivisions
|
1,114
|
1,276
|
1,335
|
1,390
|
1,428
|
|||||||||||||||
Collateralized mortgage obligations
|
149
|
176
|
182
|
188
|
198
|
|||||||||||||||
Mortgage-backed securities
|
441
|
443
|
445
|
461
|
474
|
|||||||||||||||
Corporate bonds
|
96
|
45
|
38
|
38
|
38
|
|||||||||||||||
Federal funds sold, securities purchased under agreements to
|
||||||||||||||||||||
resell and interest-bearing deposits due from banks
|
7
|
20
|
23
|
27
|
35
|
|||||||||||||||
Dividends
|
71
|
90
|
60
|
37
|
42
|
|||||||||||||||
Total interest income
|
18,206
|
18,576
|
17,193
|
16,783
|
16,164
|
|||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||
Savings, N.O.W. and money market deposits
|
338
|
294
|
274
|
292
|
291
|
|||||||||||||||
Time deposits
|
396
|
353
|
294
|
305
|
322
|
|||||||||||||||
Borrowings
|
94
|
108
|
108
|
41
|
2
|
|||||||||||||||
Total interest expense
|
828
|
755
|
676
|
638
|
615
|
|||||||||||||||
Net interest income
|
17,378
|
17,821
|
16,517
|
16,145
|
15,549
|
|||||||||||||||
Provision for loan losses
|
350
|
-
|
250
|
250
|
250
|
|||||||||||||||
Net interest income after provision for loan losses
|
17,028
|
17,821
|
16,267
|
15,895
|
15,299
|
|||||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||||||
Service charges on deposit accounts
|
749
|
823
|
747
|
847
|
887
|
|||||||||||||||
Other service charges, commissions and fees
|
759
|
680
|
593
|
735
|
778
|
|||||||||||||||
Fiduciary fees
|
-
|
-
|
-
|
199
|
265
|
|||||||||||||||
Net gain on sale of securities available for sale
|
133
|
160
|
26
|
31
|
11
|
|||||||||||||||
Net gain on sale of portfolio loans
|
370
|
-
|
198
|
-
|
217
|
|||||||||||||||
Net gain on sale of mortgage loans originated for sale
|
85
|
61
|
144
|
69
|
51
|
|||||||||||||||
Income from bank owned life insurance
|
306
|
303
|
309
|
319
|
316
|
|||||||||||||||
Other operating income
|
25
|
23
|
74
|
380
|
25
|
|||||||||||||||
Total non-interest income
|
2,427
|
2,050
|
2,091
|
2,580
|
2,550
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Employee compensation and benefits
|
7,980
|
8,516
|
8,606
|
8,583
|
8,628
|
|||||||||||||||
Occupancy expense
|
1,401
|
1,373
|
1,462
|
1,394
|
1,295
|
|||||||||||||||
Equipment expense
|
410
|
404
|
385
|
429
|
418
|
|||||||||||||||
Consulting and professional services
|
609
|
544
|
338
|
743
|
693
|
|||||||||||||||
FDIC assessment
|
226
|
286
|
290
|
294
|
202
|
|||||||||||||||
Data processing
|
506
|
514
|
570
|
523
|
549
|
|||||||||||||||
Other operating expenses
|
1,536
|
1,537
|
1,457
|
1,756
|
1,451
|
|||||||||||||||
Total operating expenses
|
12,668
|
13,174
|
13,108
|
13,722
|
13,236
|
|||||||||||||||
Income before income tax expense
|
6,787
|
6,697
|
5,250
|
4,753
|
4,613
|
|||||||||||||||
Income tax expense
|
1,864
|
1,579
|
1,241
|
687
|
875
|
|||||||||||||||
NET INCOME
|
$
|
4,923
|
$
|
5,118
|
$
|
4,009
|
$
|
4,066
|
$
|
3,738
|
||||||||||
EARNINGS PER COMMON SHARE - BASIC
|
$
|
0.42
|
$
|
0.44
|
$
|
0.34
|
$
|
0.35
|
$
|
0.32
|
||||||||||
EARNINGS PER COMMON SHARE - DILUTED
|
$
|
0.42
|
$
|
0.43
|
$
|
0.34
|
$
|
0.35
|
$
|
0.32
|
PRESS RELEASE
October 21, 2015
Page 12 of 17 |
![]() |
STATISTICAL SUMMARY
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
EARNINGS:
|
||||||||||||||||
Earnings per common share - diluted
|
$
|
0.42
|
$
|
0.32
|
$
|
1.19
|
$
|
0.96
|
||||||||
Net income
|
4,923
|
3,738
|
14,050
|
11,229
|
||||||||||||
Net interest income
|
17,378
|
15,549
|
51,716
|
46,389
|
||||||||||||
Cash dividends per common share
|
0.10
|
0.06
|
0.22
|
0.06
|
||||||||||||
AVERAGE BALANCES:
|
||||||||||||||||
Total assets
|
$
|
2,013,119
|
$
|
1,770,514
|
$
|
1,952,270
|
$
|
1,733,988
|
||||||||
Loans and performing loans held for sale
|
1,511,936
|
1,219,508
|
1,437,639
|
1,151,260
|
||||||||||||
Investment securities
|
330,891
|
376,097
|
345,958
|
399,261
|
||||||||||||
Interest-earning assets
|
1,860,118
|
1,640,573
|
1,809,579
|
1,604,249
|
||||||||||||
Demand deposits
|
779,215
|
673,441
|
723,650
|
644,042
|
||||||||||||
Core deposits (1)
|
1,512,580
|
1,342,291
|
1,431,436
|
1,308,428
|
||||||||||||
Total deposits
|
1,754,007
|
1,570,498
|
1,661,647
|
1,537,313
|
||||||||||||
Borrowings
|
42,783
|
1,957
|
78,464
|
2,619
|
||||||||||||
Stockholders' equity
|
192,493
|
181,241
|
188,708
|
176,464
|
||||||||||||
FINANCIAL PERFORMANCE RATIOS:
|
||||||||||||||||
Return on average assets
|
0.97
|
%
|
0.84
|
%
|
0.96
|
%
|
0.87
|
%
|
||||||||
Return on average stockholders' equity
|
10.15
|
%
|
8.18
|
%
|
9.95
|
%
|
8.51
|
%
|
||||||||
Average loans/average deposits
|
86.20
|
%
|
77.65
|
%
|
86.52
|
%
|
74.89
|
%
|
||||||||
Average core deposits/average deposits
|
86.24
|
%
|
85.47
|
%
|
86.15
|
%
|
85.11
|
%
|
||||||||
Average demand deposits/average deposits
|
44.42
|
%
|
42.88
|
%
|
43.55
|
%
|
41.89
|
%
|
||||||||
Net interest margin (FTE)
|
3.89
|
%
|
4.00
|
%
|
4.02
|
%
|
4.11
|
%
|
||||||||
Operating efficiency ratio (2)
|
61.16
|
%
|
68.78
|
%
|
63.51
|
%
|
68.13
|
%
|
||||||||
Core operating efficiency ratio (3)
|
61.75
|
%
|
69.20
|
%
|
64.75
|
%
|
70.77
|
%
|
||||||||
(1) Demand, savings, N.O.W. and money market deposits.
|
||||||||||||||||
(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 bulk sales of loans and sales of available for sale securities.
|
||||||||||||||||
(3) The core operating efficiency ratio is calculated by making certain adjustments to the operating efficiency ratio calculation. The core operating efficiency ratio is not required by U.S. GAAP or by applicable bank regulatory requirements, but is a metric used by management to evaluate core operating efficiency. Since there is no authoritative requirement to calculate this ratio, our ratio is not necessarily comparable to similar efficiency measures disclosed or used by other companies in the financial services industry. The core operating efficiency ratio is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with U.S. GAAP. The reconciliation of core FTE net interest income to FTE net interest income is provided elsewhere herein. With respect to the calculation of the actual unaudited core operating efficiency ratio as of the reported periods, the reconciliation of core operating expenses to U.S. GAAP total operating expenses and core non-interest income to U.S. GAAP total non-interest income and the calculation of the core operating efficiency ratio are set forth below:
|
||||||||||||||||
Core operating expenses:
|
||||||||||||||||
Total operating expenses
|
$
|
12,668
|
$
|
13,236
|
$
|
38,950
|
$
|
39,697
|
||||||||
Adjust for branch consolidation credits
|
-
|
-
|
-
|
449
|
||||||||||||
Core operating expenses
|
12,668
|
13,236
|
38,950
|
40,146
|
||||||||||||
Core non-interest income:
|
||||||||||||||||
Total non-interest income
|
2,427
|
2,550
|
6,568
|
8,320
|
||||||||||||
Adjust for gain on sale of branch building and parking lot
|
-
|
-
|
-
|
(746
|
)
|
|||||||||||
Core non-interest income
|
2,427
|
2,550
|
6,568
|
7,574
|
||||||||||||
Adjust for tax-equivalent basis
|
200
|
190
|
600
|
622
|
||||||||||||
Core FTE non-interest income
|
2,627
|
2,740
|
7,168
|
8,196
|
||||||||||||
Core operating efficiency ratio:
|
||||||||||||||||
Core operating expenses
|
12,668
|
13,236
|
38,950
|
40,146
|
||||||||||||
Core FTE net interest income
|
18,021
|
16,398
|
53,302
|
48,521
|
||||||||||||
Core FTE non-interest income
|
2,627
|
2,740
|
7,168
|
8,196
|
||||||||||||
Less net (gain) loss on sale of securities available for sale
|
(133
|
)
|
(11
|
)
|
(319
|
)
|
12
|
|||||||||
Total FTE revenue
|
20,515
|
19,127
|
60,151
|
56,729
|
||||||||||||
Core operating expenses/total FTE revenue
|
61.75
|
%
|
69.20
|
%
|
64.75
|
%
|
70.77
|
%
|
||||||||
PRESS RELEASE
October 21, 2015
Page 13 of 17 |
![]() |
STATISTICAL SUMMARY (continued)
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
RECONCILIATION OF BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||
Weighted average common shares outstanding
|
11,674,697
|
11,586,564
|
11,636,155
|
11,578,350
|
||||||||||||||||
Weighted average unvested restricted shares
|
111,034
|
74,980
|
106,921
|
33,440
|
||||||||||||||||
Weighted average shares for basic earnings per share
|
11,785,731
|
11,661,544
|
11,743,076
|
11,611,790
|
||||||||||||||||
Additional diluted shares:
|
||||||||||||||||||||
Stock options
|
77,568
|
54,742
|
74,823
|
56,201
|
||||||||||||||||
Weighted average shares for diluted earnings per share
|
11,863,299
|
11,716,286
|
11,817,899
|
11,667,991
|
||||||||||||||||
CAPITAL RATIOS:
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2015
|
2015
|
2015
|
2014
|
2014
|
||||||||||||||||
Suffolk Bancorp:
|
||||||||||||||||||||
Tier 1 leverage ratio
|
9.95
|
%
|
10.10
|
%
|
10.13
|
%
|
10.04
|
%
|
10.21
|
%
|
||||||||||
Common equity tier 1 risk-based capital ratio
|
11.98
|
%
|
12.01
|
%
|
12.52
|
%
|
N/
|
A
|
N/
|
A
|
||||||||||
Tier 1 risk-based capital ratio
|
11.98
|
%
|
12.01
|
%
|
12.52
|
%
|
12.10
|
%
|
12.84
|
%
|
||||||||||
Total risk-based capital ratio
|
13.21
|
%
|
13.26
|
%
|
13.77
|
%
|
13.35
|
%
|
14.09
|
%
|
||||||||||
Tangible common equity ratio (1)
|
9.38
|
%
|
9.43
|
%
|
9.77
|
%
|
9.50
|
%
|
10.07
|
%
|
||||||||||
Total stockholders' equity/total assets (2)
|
9.51
|
%
|
9.57
|
%
|
9.91
|
%
|
9.64
|
%
|
10.22
|
%
|
||||||||||
Suffolk County National Bank:
|
||||||||||||||||||||
Tier 1 leverage ratio
|
9.78
|
%
|
9.95
|
%
|
10.02
|
%
|
9.96
|
%
|
10.11
|
%
|
||||||||||
Common equity tier 1 risk-based capital ratio
|
11.77
|
%
|
11.83
|
%
|
12.38
|
%
|
N/
|
A
|
N/
|
A
|
||||||||||
Tier 1 risk-based capital ratio
|
11.77
|
%
|
11.83
|
%
|
12.38
|
%
|
12.00
|
%
|
12.72
|
%
|
||||||||||
Total risk-based capital ratio
|
13.01
|
%
|
13.08
|
%
|
13.63
|
%
|
13.25
|
%
|
13.97
|
%
|
||||||||||
Tangible common equity ratio (1)
|
9.22
|
%
|
9.29
|
%
|
9.66
|
%
|
9.40
|
%
|
9.97
|
%
|
||||||||||
Total stockholders' equity/total assets (2)
|
9.34
|
%
|
9.42
|
%
|
9.80
|
%
|
9.55
|
%
|
10.12
|
%
|
||||||||||
(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 U.S. 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 U.S. GAAP. With respect to the calculation of the actual unaudited TCE ratios as of September 30, 2015, reconciliations of tangible common equity to U.S. GAAP total common stockholders' equity and tangible assets to U.S. GAAP total assets are set forth below:
|
||||||||||||||||||||
Suffolk Bancorp:
|
||||||||||||||||||||
Total stockholders' equity
|
$
|
196,540
|
Total assets
|
$
|
2,066,844
|
9.51
|
%
|
|||||||||||||
Less: intangible assets
|
(2,915
|
)
|
Less: intangible assets
|
(2,915
|
)
|
|||||||||||||||
Tangible common equity
|
$
|
193,625
|
Tangible assets
|
$
|
2,063,929
|
9.38
|
%
|
|||||||||||||
Suffolk County National Bank:
|
||||||||||||||||||||
Total stockholders' equity
|
$
|
193,079
|
Total assets
|
$
|
2,066,478
|
9.34
|
%
|
|||||||||||||
Less: intangible assets
|
(2,915
|
)
|
Less: intangible assets
|
(2,915
|
)
|
|||||||||||||||
Tangible common equity
|
$
|
190,164
|
Tangible assets
|
$
|
2,063,563
|
9.22
|
%
|
|||||||||||||
(2) The ratio of total stockholders' equity to total assets is the most comparable U.S. GAAP measure to the non-GAAP tangible common
|
||||||||||||||||||||
equity ratio presented herein.
|
PRESS RELEASE
October 21, 2015
Page 14 of 17 |
![]() |
STATISTICAL SUMMARY (continued)
|
||||||||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
||||||||||||||||||||
Periods Ended
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2015
|
2015
|
2015
|
2014
|
2014
|
||||||||||||||||
LOAN DISTRIBUTION (1):
|
||||||||||||||||||||
Commercial and industrial
|
$
|
181,116
|
$
|
196,881
|
$
|
178,812
|
$
|
177,813
|
$
|
180,399
|
||||||||||
Commercial real estate
|
648,132
|
598,866
|
579,873
|
560,524
|
512,341
|
|||||||||||||||
Multifamily
|
392,921
|
361,309
|
322,229
|
309,666
|
274,352
|
|||||||||||||||
Mixed use commercial
|
64,381
|
50,372
|
35,333
|
34,806
|
27,476
|
|||||||||||||||
Real estate construction
|
32,896
|
31,628
|
24,608
|
26,206
|
21,615
|
|||||||||||||||
Residential mortgages
|
186,545
|
182,828
|
184,977
|
187,828
|
185,856
|
|||||||||||||||
Home equity
|
46,990
|
48,298
|
49,440
|
50,982
|
52,001
|
|||||||||||||||
Consumer
|
6,539
|
6,444
|
6,888
|
7,602
|
8,021
|
|||||||||||||||
Total loans
|
$
|
1,559,520
|
$
|
1,476,626
|
$
|
1,382,160
|
$
|
1,355,427
|
$
|
1,262,061
|
||||||||||
Sequential quarter growth rate
|
5.61
|
%
|
6.83
|
%
|
1.97
|
%
|
7.40
|
%
|
5.57
|
%
|
||||||||||
Period-end loans/deposits ratio
|
86.84
|
%
|
85.93
|
%
|
86.84
|
%
|
87.11
|
%
|
79.84
|
%
|
||||||||||
FUNDING DISTRIBUTION:
|
||||||||||||||||||||
Demand
|
$
|
801,212
|
$
|
766,444
|
$
|
682,593
|
$
|
683,634
|
$
|
681,306
|
||||||||||
N.O.W.
|
123,553
|
130,583
|
131,934
|
121,046
|
115,846
|
|||||||||||||||
Savings
|
326,711
|
310,055
|
312,101
|
298,653
|
302,470
|
|||||||||||||||
Money market
|
308,816
|
268,812
|
241,856
|
233,968
|
256,721
|
|||||||||||||||
Total core deposits
|
1,560,292
|
1,475,894
|
1,368,484
|
1,337,301
|
1,356,343
|
|||||||||||||||
Time
|
235,539
|
242,500
|
223,188
|
218,759
|
224,426
|
|||||||||||||||
Total deposits
|
1,795,831
|
1,718,394
|
1,591,672
|
1,556,060
|
1,580,769
|
|||||||||||||||
Borrowings
|
50,000
|
65,000
|
90,000
|
130,000
|
10,000
|
|||||||||||||||
Total funding sources
|
$
|
1,845,831
|
$
|
1,783,394
|
$
|
1,681,672
|
$
|
1,686,060
|
$
|
1,590,769
|
||||||||||
Sequential quarter growth rate - total deposits
|
4.51
|
%
|
7.96
|
%
|
2.29
|
%
|
(1.56
|
%)
|
0.80
|
%
|
||||||||||
Period-end core deposits/total deposits ratio
|
86.88
|
%
|
85.89
|
%
|
85.98
|
%
|
85.94
|
%
|
85.80
|
%
|
||||||||||
Period-end demand deposits/total deposits ratio
|
44.62
|
%
|
44.60
|
%
|
42.89
|
%
|
43.93
|
%
|
43.10
|
%
|
||||||||||
Cost of funds for the quarter
|
0.18
|
%
|
0.18
|
%
|
0.16
|
%
|
0.15
|
%
|
0.16
|
%
|
||||||||||
EQUITY:
|
||||||||||||||||||||
Common shares outstanding
|
11,790,512
|
11,779,470
|
11,725,652
|
11,670,770
|
11,667,590
|
|||||||||||||||
Stockholders' equity
|
$
|
196,540
|
$
|
191,151
|
$
|
187,560
|
$
|
182,733
|
$
|
183,197
|
||||||||||
Book value per common share
|
16.67
|
16.23
|
16.00
|
15.66
|
15.70
|
|||||||||||||||
Tangible common equity
|
193,625
|
188,159
|
184,517
|
179,742
|
180,210
|
|||||||||||||||
Tangible book value per common share
|
16.42
|
15.97
|
15.74
|
15.40
|
15.45
|
|||||||||||||||
(1) Excluding loans held for sale.
|
PRESS RELEASE
October 21, 2015
Page 15 of 17 |
![]() |
ASSET QUALITY ANALYSIS
|
||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2015
|
2015
|
2015
|
2014
|
2014
|
||||||||||||||||
Non-performing assets (1):
|
||||||||||||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
3,662
|
$
|
1,785
|
$
|
3,035
|
$
|
4,060
|
$
|
4,946
|
||||||||||
Commercial real estate
|
1,746
|
1,759
|
6,647
|
6,556
|
6,650
|
|||||||||||||||
Residential mortgages
|
1,424
|
1,465
|
2,074
|
2,020
|
2,457
|
|||||||||||||||
Home equity
|
548
|
355
|
414
|
303
|
557
|
|||||||||||||||
Consumer
|
121
|
165
|
122
|
42
|
44
|
|||||||||||||||
Total non-accrual loans
|
7,501
|
5,529
|
12,292
|
12,981
|
14,654
|
|||||||||||||||
Loans 90 days or more past due and still accruing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total non-performing loans
|
7,501
|
5,529
|
12,292
|
12,981
|
14,654
|
|||||||||||||||
Non-accrual loans held for sale
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
OREO
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total non-performing assets
|
$
|
7,501
|
$
|
5,529
|
$
|
12,292
|
$
|
12,981
|
$
|
14,654
|
||||||||||
Total non-accrual loans/total loans (2)
|
0.48
|
%
|
0.37
|
%
|
0.89
|
%
|
0.96
|
%
|
1.16
|
%
|
||||||||||
Total non-performing loans/total loans (2)
|
0.48
|
%
|
0.37
|
%
|
0.89
|
%
|
0.96
|
%
|
1.16
|
%
|
||||||||||
Total non-performing assets/total assets
|
0.36
|
%
|
0.28
|
%
|
0.65
|
%
|
0.68
|
%
|
0.82
|
%
|
||||||||||
Troubled debt restructurings ("TDRs") (2):
|
||||||||||||||||||||
Total TDRs
|
$
|
12,560
|
$
|
12,932
|
$
|
18,741
|
$
|
19,673
|
$
|
19,677
|
||||||||||
Performing TDRs
|
10,172
|
10,091
|
9,418
|
9,380
|
8,194
|
|||||||||||||||
Activity in the allowance for loan losses:
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
20,051
|
$
|
19,325
|
$
|
19,200
|
$
|
18,800
|
$
|
18,478
|
||||||||||
Less: charge-offs
|
253
|
9
|
493
|
22
|
119
|
|||||||||||||||
Recoveries
|
167
|
735
|
368
|
172
|
191
|
|||||||||||||||
Provision for loan losses
|
350
|
-
|
250
|
250
|
250
|
|||||||||||||||
Balance at end of period
|
$
|
20,315
|
$
|
20,051
|
$
|
19,325
|
$
|
19,200
|
$
|
18,800
|
||||||||||
Allowance for loan losses/non-accrual loans (1) (2)
|
271
|
%
|
363
|
%
|
157
|
%
|
148
|
%
|
128
|
%
|
||||||||||
Allowance for loan losses/non-performing loans (1) (2)
|
271
|
%
|
363
|
%
|
157
|
%
|
148
|
%
|
128
|
%
|
||||||||||
Allowance for loan losses/total loans (1) (2)
|
1.30
|
%
|
1.36
|
%
|
1.40
|
%
|
1.42
|
%
|
1.49
|
%
|
||||||||||
Net charge-offs (recoveries):
|
||||||||||||||||||||
Commercial and industrial
|
$
|
114
|
$
|
(693
|
)
|
$
|
149
|
$
|
(133
|
)
|
$
|
(56
|
)
|
|||||||
Commercial real estate
|
(10
|
)
|
(11
|
)
|
(7
|
)
|
(11
|
)
|
(11
|
)
|
||||||||||
Residential mortgages
|
(4
|
)
|
(16
|
)
|
(11
|
)
|
(4
|
)
|
(4
|
)
|
||||||||||
Home equity
|
(10
|
)
|
(5
|
)
|
(2
|
)
|
(2
|
)
|
(3
|
)
|
||||||||||
Consumer
|
(4
|
)
|
(1
|
)
|
(4
|
)
|
-
|
2
|
||||||||||||
Total net charge-offs (recoveries)
|
$
|
86
|
$
|
(726
|
)
|
$
|
125
|
$
|
(150
|
)
|
$
|
(72
|
)
|
|||||||
Net charge-offs (recoveries) (annualized)/average loans
|
0.02
|
%
|
(0.21
|
%)
|
0.04
|
%
|
(0.05
|
%)
|
(0.02
|
%)
|
||||||||||
Delinquencies and non-accrual loans
|
||||||||||||||||||||
as a % of total loans (1):
|
||||||||||||||||||||
Loans 30 - 59 days past due
|
0.05
|
%
|
0.11
|
%
|
0.05
|
%
|
0.07
|
%
|
0.22
|
%
|
||||||||||
Loans 60 - 89 days past due
|
0.01
|
%
|
0.20
|
%
|
0.03
|
%
|
0.03
|
%
|
0.03
|
%
|
||||||||||
Loans 90 days or more past due and still accruing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total accruing past due loans
|
0.06
|
%
|
0.31
|
%
|
0.08
|
%
|
0.10
|
%
|
0.25
|
%
|
||||||||||
Non-accrual loans
|
0.48
|
%
|
0.37
|
%
|
0.89
|
%
|
0.96
|
%
|
1.16
|
%
|
||||||||||
Total delinquent and non-accrual loans
|
0.54
|
%
|
0.68
|
%
|
0.97
|
%
|
1.06
|
%
|
1.41
|
%
|
||||||||||
(1) At period end.
|
||||||||||||||||||||
(2) Excluding loans held for sale.
|
PRESS RELEASE
October 21, 2015
Page 16 of 17 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Three Months Ended September 30, 2015 and 2014
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$
|
330,891
|
$
|
3,022
|
3.62
|
%
|
$
|
376,097
|
$
|
3,521
|
3.71
|
%
|
||||||||||||
Federal Reserve and Federal Home Loan Bank stock
|
||||||||||||||||||||||||
and other investments
|
5,251
|
71
|
5.36
|
2,990
|
42
|
5.57
|
||||||||||||||||||
Federal funds sold and interest-bearing
|
||||||||||||||||||||||||
deposits due from banks
|
12,040
|
7
|
0.23
|
41,978
|
35
|
0.33
|
||||||||||||||||||
Loans and performing loans held for sale (2)
|
1,511,936
|
15,948
|
4.18
|
1,219,508
|
13,532
|
4.40
|
||||||||||||||||||
Total interest-earning assets
|
1,860,118
|
$
|
19,048
|
4.06
|
%
|
1,640,573
|
$
|
17,130
|
4.14
|
%
|
||||||||||||||
Non-interest-earning assets
|
153,001
|
129,941
|
||||||||||||||||||||||
Total assets
|
$
|
2,013,119
|
$
|
1,770,514
|
||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings, N.O.W. and money market deposits
|
$
|
733,365
|
$
|
338
|
0.18
|
%
|
$
|
668,850
|
$
|
291
|
0.17
|
%
|
||||||||||||
Time deposits
|
241,427
|
396
|
0.65
|
228,207
|
322
|
0.56
|
||||||||||||||||||
Total savings and time deposits
|
974,792
|
734
|
0.30
|
897,057
|
613
|
0.27
|
||||||||||||||||||
Borrowings
|
42,783
|
94
|
0.88
|
1,957
|
2
|
0.37
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,017,575
|
828
|
0.32
|
899,014
|
615
|
0.27
|
||||||||||||||||||
Demand deposits
|
779,215
|
673,441
|
||||||||||||||||||||||
Other liabilities
|
23,836
|
16,818
|
||||||||||||||||||||||
Total liabilities
|
1,820,626
|
1,589,273
|
||||||||||||||||||||||
Stockholders' equity
|
192,493
|
181,241
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
2,013,119
|
$
|
1,770,514
|
||||||||||||||||||||
Total cost of funds
|
0.18
|
%
|
0.16
|
%
|
||||||||||||||||||||
Net interest rate spread
|
3.74
|
%
|
3.87
|
%
|
||||||||||||||||||||
Net interest income/margin
|
18,220
|
3.89
|
%
|
16,515
|
4.00
|
%
|
||||||||||||||||||
Less tax-equivalent basis adjustment
|
(842
|
)
|
(966
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
17,378
|
$
|
15,549
|
||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $692 and $830 in 2015 and 2014, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effects of tax-equivalent basis adjustments of $150 and $136 in 2015 and 2014, respectively.
|
PRESS RELEASE
October 21, 2015
Page 17 of 17 |
![]() |
NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
For the Nine Months Ended September 30, 2015 and 2014
|
||||||||||||||||||||||||
(unaudited, dollars in thousands)
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Yield/Cost
|
Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Investment securities (1)
|
$
|
345,958
|
$
|
9,669
|
3.74
|
%
|
$
|
399,261
|
$
|
11,129
|
3.73
|
%
|
||||||||||||
Federal Reserve and Federal Home Loan Bank stock
|
||||||||||||||||||||||||
and other investments
|
6,609
|
221
|
4.47
|
3,099
|
115
|
4.96
|
||||||||||||||||||
Federal funds sold, securities purchased under agreements to
|
||||||||||||||||||||||||
resell and interest-bearing deposits due from banks
|
19,373
|
50
|
0.35
|
50,629
|
123
|
0.32
|
||||||||||||||||||
Loans and performing loans held for sale (2)
|
1,437,639
|
46,794
|
4.35
|
1,151,260
|
39,824
|
4.62
|
||||||||||||||||||
Total interest-earning assets
|
1,809,579
|
$
|
56,734
|
4.19
|
%
|
1,604,249
|
$
|
51,191
|
4.27
|
%
|
||||||||||||||
Non-interest-earning assets
|
142,691
|
129,739
|
||||||||||||||||||||||
Total assets
|
$
|
1,952,270
|
$
|
1,733,988
|
||||||||||||||||||||
Liabilities and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings, N.O.W. and money market deposits
|
$
|
707,786
|
$
|
906
|
0.17
|
%
|
$
|
664,386
|
$
|
870
|
0.18
|
%
|
||||||||||||
Time deposits
|
230,211
|
1,043
|
0.61
|
228,885
|
1,004
|
0.59
|
||||||||||||||||||
Total savings and time deposits
|
937,997
|
1,949
|
0.28
|
893,271
|
1,874
|
0.28
|
||||||||||||||||||
Borrowings
|
78,464
|
310
|
0.53
|
2,619
|
7
|
0.36
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,016,461
|
2,259
|
0.30
|
895,890
|
1,881
|
0.28
|
||||||||||||||||||
Demand deposits
|
723,650
|
644,042
|
||||||||||||||||||||||
Other liabilities
|
23,451
|
17,592
|
||||||||||||||||||||||
Total liabilities
|
1,763,562
|
1,557,524
|
||||||||||||||||||||||
Stockholders' equity
|
188,708
|
176,464
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,952,270
|
$
|
1,733,988
|
||||||||||||||||||||
Total cost of funds
|
0.17
|
%
|
0.16
|
%
|
||||||||||||||||||||
Net interest rate spread
|
3.89
|
%
|
3.99
|
%
|
||||||||||||||||||||
Net interest income/margin
|
54,475
|
4.02
|
%
|
49,310
|
4.11
|
%
|
||||||||||||||||||
Less tax-equivalent basis adjustment
|
(2,759
|
)
|
(2,921
|
)
|
||||||||||||||||||||
Net interest income
|
$
|
51,716
|
$
|
46,389
|
||||||||||||||||||||
(1) Interest on securities includes the effects of tax-equivalent basis adjustments of $2,327 and $2,573 in 2015 and 2014, respectively.
|
||||||||||||||||||||||||
(2) Interest on loans includes the effects of tax-equivalent basis adjustments of $432 and $348 in 2015 and 2014, respectively.
|
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