TowneBank (the “Company”) (NASDAQ: TOWN) today reported earnings
for the quarter ended September 30, 2020 of
$34.46 million, or $0.48 per diluted share, compared to
$37.66 million, or $0.52 per diluted share, for the quarter
ended September 30, 2019.
“Our third quarter results were highlighted by strong
performance across our fee-based business lines. Total
revenues exceeded $192 million despite challenges from historically
low interest rates. Credit metrics remained stable reflecting
our relationship-based credit culture. Once again, strong
deposit growth led to TowneBank earning the top spot in Hampton
Roads market share according to recently released FDIC data,” said
G. Robert Aston, Jr., Executive Chairman.
Highlights for Third Quarter 2020
Compared to Third Quarter 2019:
- Total revenues were a record $192.14 million, an increase
of $46.26 million, or 31.71%.
- Pre-provision, pre-tax, net revenues (non-GAAP) were $73.90
million, an increase of $27.05 million, or 57.74%.
- Loans held for investment were $9.77 billion, an increase of
$1.59 billion, or 19.40%, from September 30, 2019, but a
decrease of $0.03 billion, or 0.32%, from June 30,
2020. The balance at September 30, 2020 and
June 30, 2020 included $1.10 billion and $1.09 billion,
respectively, of loans originated under the Small Business
Administration’s Paycheck Protection Program (“PPP”).
- Total deposits were $11.70 billion, an increase of
$2.27 billion, or 24.02%, compared to prior year and
$0.44 billion, or 3.91%, from June 30, 2020.
- Noninterest bearing deposits increased by 47.31%, to
$4.46 billion, representing 38.14% of total deposits.
Compared to the linked quarter, noninterest bearing deposits
increased 5.63%.
- Annualized return on common shareholders' equity was 7.91% and
annualized return on average tangible common shareholders' equity
was 11.79% (non-GAAP).
- Net interest margin for the quarter was 2.70% and taxable
equivalent net interest margin (non-GAAP) was 2.72%.
- Nonperforming assets were $28.74 million, or 0.19% of
total assets, compared to $31.04 million, or 0.26%, at
September 30, 2019.
- Effective tax rate of 18.53% in the quarter compared to 16.95%
in the third quarter of 2019.
“Despite the many headwinds impacting the nation in 2020, our
team at Towne has been working diligently behind the scenes to
enhance and improve our member experience through our Towne 20.20
initiative. In early October, as part of that initiative, we
implemented a new robust banking system that sets the stage for new
and innovative technology, enhanced digital solutions, and a
greater variety of financial services,” stated J. Morgan Davis,
President and Chief Executive Officer.
Quarterly Net Interest Income Compared
to Third Quarter 2019:
- Net interest income was $96.76 million compared to
$91.10 million at September 30, 2019.
- Taxable equivalent net interest margin (non-GAAP) was 2.72%,
including accretion of 5 basis points, compared to 3.43%,
including accretion of 11 basis points, for third quarter
2019.
- Average loans held for investment, with an average yield of
4.22%, represented 68.38% of average earning assets at
September 30, 2020 compared to an average yield of 5.02% and
76.35% of average earning assets in the third quarter of
2019. Excluding PPP, loan yields were 4.30% in third quarter
2020.
- Interest and fee income on PPP loans was $9.82 million in third
quarter 2020, compared to $5.83 million in the linked quarter,
and zero in third quarter 2019.
- Total cost of deposits decreased to 0.46% from 1.01% at
September 30, 2019.
- Average interest-earning assets totaled $14.26 billion at
September 30, 2020 compared to $10.60 billion at
September 30, 2019, an increase of 34.49%.
- Average interest-bearing liabilities totaled
$9.21 billion, an increase of $2.18 billion from prior
year.
- Interest expense on the FRB PPP lending facility was $0.91
million in third quarter, compared to $0.54 million in the linked
quarter, and zero in third quarter 2019.
Quarterly Provision for Credit
Losses:
- Recorded a quarterly provision for credit losses for
on-balance-sheet loans of $28.26 million compared to
$1.51 million one year ago and $25.99 million in the
linked quarter. This increase is primarily attributable to a
heavier weighting given to adverse economic forecasts in our credit
loss models due to expectation of continued economic weakness
driven by a number of uncertainties impacting the local and
national economy. These macroeconomic forecasts were impacted
by the notable weakening of small businesses in the wake of the
extended COVID-19 pandemic, major layoff announcements, and the
deterioration in the U.S. trade relationship with China.
Expected loss estimates consider various factors including the
impacts of the decreased economic activity and higher unemployment
rates, customer specific credit information, and the potential
mitigating benefits of government stimulus and industry wide loan
modification efforts.
- Net loan recoveries were $0.33 million compared to
charge-offs of $0.61 million one year prior. The ratio
of net loan charge-offs (recoveries) to average loans on an
annualized basis was (0.01)% in third quarter 2020 and 0.03%
in third quarter 2019. The Company has proactively
supported members by providing payment deferrals when needed,
which, combined with government stimulus, has prevented a
significant deterioration in asset quality metrics. We will
continue to closely monitor credit quality as the effects of
government stimulus lessen and the economic impact of the pandemic
becomes clearer over time.
- Recorded a provision for credit losses on off-balance-sheet
commitments of $3.50 million compared to $1.08 million in the
linked quarter.
- The allowance for credit losses on loans represented 1.22% of
total loans compared to 0.92% at June 30, 2020 and 0.68% at
September 30, 2019. Excluding PPP loans, which are fully
government guaranteed, the allowance for credit losses (non-GAAP)
was 1.37%, compared to 1.04% at June 30, 2020. The
allowance for credit losses on loans was 7.31 times nonperforming
loans compared to 5.34 times at June 30, 2020 and 3.95 times
at September 30, 2019.
Quarterly Noninterest Income Compared to
Third Quarter 2019:
- Total noninterest income was $95.38 million compared to
$54.78 million in 2019, an increase of $40.60 million, or
74.12%. Residential mortgage banking income increased
$18.68 million and real estate brokerage and property
management income increased $1.86 million. Also included
in noninterest income are net gains on investment securities of
$1.70 million as compared to net losses of $0.07 million
in the prior year and a gain of $17.63 million on the sale of Red
Sky Travel Insurance ("Red Sky"), a travel insurance joint
venture.
- Residential mortgage banking recorded income of
$37.53 million compared to $18.86 million in third
quarter 2019. Loan volume in the current quarter was
$1.79 billion, with purchase activity comprising 61.18% of
that volume. Loan volume in third quarter 2019 was
$0.96 billion, with purchase activity comprising 68.83%.
Though still an increase over the prior year, refinancing activity
has declined compared to the linked quarter. Increased volume
and a continued low mortgage rate environment coupled with improved
margins were the drivers of improvement compared to the prior year
quarter.
- Total Insurance segment revenue increased 95.11% to
$38.27 million in the third quarter due to the sale of a joint
venture, organic growth, and expense control measures. The
Company sold Red Sky mid-third quarter 2020. A gain on the
sale of Red Sky totaling $17.63 million was recorded in other
income. After distributions to noncontrolling interests,
Towne retained $6.52 million of the pre-tax gain. In
2019, Red Sky contributed $4.09 million to insurance revenue, with
an annual net income after noncontrolling interest of $0.94
million.
- Property management fee revenue increased 16.02%, or
$1.05 million, compared to third quarter 2019. The
lifting of local travel restrictions in second quarter related to
COVID-19, coupled with businesses and schools continuing to operate
remotely, has resulted in an extended vacation season and increased
reservation activity during the quarter.
Quarterly Noninterest Expense Compared
to Third Quarter 2019:
- Total noninterest expense was $101.98 million compared to
$97.29 million in 2019, an increase of $4.69 million, or
4.82%. Increases in salary and benefits expense of
$5.62 million, data processing expense of $0.58 million,
and software expense of $0.36 million, offset the declines
across most other expense categories.
- During the first three quarters of the year, the Company has
been focused on its Towne 20.20 initiative which centered around
our early October core conversion. This core conversion will
allow the Company to provide a greater variety of financial
services to our members through new technologies and enhanced
digital solutions. Preparation for this conversion began in
2019 and necessitated long hours and dedication from team members,
which the Company chose to recognize through one-time bonuses and
vacation carry-overs of approximately $2.84 million in the
quarter. Other conversion expenses in the quarter totaled
$0.71 million.
- Other infrastructure enhancements and market expansion, that
occurred in 2019, have resulted in generally higher levels of
salary and benefits expense and software expense, while
quarantines, travel restrictions, and other decreases in business
activity related to COVID-19 have resulted in lower general
spending.
- Write-downs related to a Company-owned building and lots in
North Carolina totaled $1.06 million in the quarter.
Quarterly Income Taxes Compared to Third
Quarter 2019:
- Income tax expense was $7.84 million compared to
$7.68 million one year prior. This represents an
effective tax rate of 18.53% compared to 16.95% in the third
quarter of 2019.
Consolidated Balance Sheet
Highlights:
- Total assets were $14.80 billion for the quarter ended
September 30, 2020, a decrease of $0.78 billion, or 5.04%,
compared to $15.58 billion at June 30, 2020. Total assets
increased $2.77 billion, or 23.08%, from $12.02 billion
at September 30, 2019. The year-over-year increase was
driven primarily by growth in cash and cash equivalents and loans
held for investment tied to PPP lending activities.
- Loans held for investment increased $1.59 billion, or 19.40%,
compared to prior year but decreased $0.03 billion compared
the linked quarter. Excluding PPP loans of $1.10 billion in
the third quarter, and $1.09 billion in the second quarter of 2020,
loans held for investment increased $484.60 million, or 5.92%,
compared to prior year, but declined $44.47 million, or 0.51%,
compared to the linked quarter.
- Mortgage loans held for sale increased $212.30 million,
or 46.48%, compared to the prior year and $58.65 million, or 9.61%,
compared to the linked quarter.
- Total deposits increased $2.3 billion, or 24.02%, compared
to the prior year and $0.44 billion, or 3.91%, compared to the
linked quarter.
- Total borrowings increased $0.37 billion, or 54.23%, from
prior year but decreased $1.29 billion, or 55.39%, compared to
the linked quarter. During the third quarter of 2020, the
Company repaid $1.11 billion in borrowings under the FRB PPP
lending facility, which had initially been used to facilitate
funding of the PPP loans. Additionally, we restructured our
FHLB borrowing facilities for future reductions in borrowing costs
of approximately $2.66 million over the life of those
borrowings.
Investment Securities:
- Total investment securities were $1.38 billion compared to
$1.36 billion at June 30, 2020 and $1.41 billion at
September 30, 2019. The weighted average duration of the
portfolio at September 30, 2020 was 4.1 years. The
carrying value of the AFS debt securities portfolio included
$61.43 million in net unrealized gains compared to
$19.73 million in net unrealized gains at December 31,
2019. During the third quarter of 2020, we sold
$81.8 million in AFS debt securities at a gain of
$1.70 million to reposition the portfolio.
Loans and Asset Quality:
- Total loans held for investment were $9.77 billion at
September 30, 2020 compared to $9.80 billion at
June 30, 2020 and $8.18 billion at September 30,
2019.
- Nonperforming assets were $28.74 million, or 0.19% of
total assets, compared to $31.04 million, or 0.26%, at
September 30, 2019.
- Nonperforming loans were 0.17% of period end loans, unchanged
from September 30, 2019.
- Foreclosed property decreased to $11.70 million from
$15.52 million at September 30, 2019.
- Expected loss estimates are subject to change based on
continuing review of models and assumptions, portfolio performance,
changes in forecasted macroeconomic conditions and loan mix which
could result in material changes to the reserve in future
periods.
Deposits and Borrowings:
- Total deposits were $11.70 billion compared to
$11.26 billion at June 30, 2020 and $9.44 billion at
September 30, 2019.
- Total loans to deposits were 83.47% compared to 87.01% at
June 30, 2020 and 86.70% at September 30, 2019.
- Non-interest bearing deposits were 38.14% of total deposits at
September 30, 2020 compared to 37.52% at June 30, 2020
and 32.11% at September 30, 2019.
- Total borrowings were $1.04 billion compared to
$2.33 billion at June 30, 2020 and $0.67 billion
at September 30, 2019.
Capital:
- Common equity tier 1 capital ratio of 11.75%.
- Tier 1 leverage capital ratio of 8.89%.
- Tier 1 risk-based capital ratio of 11.91%.
- Total risk-based capital ratio of 15.33%.
- Book value was $23.83 compared to $23.50 at June 30, 2020
and $22.38 at September 30, 2019.
- Tangible book value (non-GAAP) was $17.06 compared to $16.68 at
June 30, 2020 and $15.44 at September 30, 2019.
About TowneBank:As one of the top
community banks in Virginia and North Carolina, TowneBank operates
42 banking offices serving Chesapeake, Chesterfield County, Glen
Allen, Hampton, James City County, Mechanicsville, Newport News,
Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach,
Williamsburg, and York County in Virginia, along with Raleigh,
Cary, Charlotte, Greensboro, Greenville, Moyock, Grandy, Camden
County, Southern Shores, Corolla, Duck and Nags Head in North
Carolina. TowneBank also offers a full range of financial
services through its controlled divisions and subsidiaries that
include Towne Investment Group, Towne Wealth Management, Towne
Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank
Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty,
Towne 1031 Exchange, LLC, and Towne Vacations. Local
decision-making is a hallmark of its hometown banking strategy that
is delivered through the leadership of each group’s President and
Board of Directors. With total assets of $14.80 billion
as of September 30, 2020, TowneBank is one of the largest
banks headquartered in Virginia.
Non-GAAP Financial Measures:This press release
contains financial information determined by methods other than in
accordance with GAAP. The Company's management uses these
non-GAAP financial measures in its analysis of the Company's
performance. These measures typically adjust GAAP performance
measures to exclude the effects of the amortization of intangibles
and include the tax benefit associated with revenue items that are
tax-exempt, as well as adjust income available to common
shareholders for certain significant activities or transactions
that are infrequent in nature. Management believes
presentations of these non-GAAP financial measures provide useful
supplemental information that is essential to a proper
understanding of the operating results of the Company’s core
businesses. These non-GAAP disclosures should not be viewed
as a substitute for operating results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Reconciliations
of GAAP to non-GAAP disclosures are included as tables at the end
of this release.
Forward-Looking Statements:Certain statements
contained in this release constitute forward-looking statements
within the meaning of U.S. federal securities laws. These
forward-looking statements speak only as of the date of this
release, are based on current expectations, and involve a number of
assumptions. These include statements regarding TowneBank’s future
economic performance, financial condition, prospects, growth,
strategies and expectations, and objectives of management, and are
generally identified by the use of words such as “believe,”
“expect,” “intend,” “anticipate,” “estimate,” or “project” or
similar expressions. TowneBank intends such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 and is including this statement for
purposes of these safe harbor provisions. You should not place
undue reliance on forward-looking statements, which are subject to
assumptions that are subject to change. TowneBank’s ability to
predict results, or the actual effect of future plans or
strategies, is inherently uncertain. These forward-looking
statements are subject to a number of factors and uncertainties
that could cause actual results to differ from those indicated or
implied in the forward-looking statements and such differences may
be material. Factors which could have a material effect on
the operations and future prospects of TowneBank include but are
not limited to: the impacts of the ongoing coronavirus (COVID-19)
pandemic, changes in interest rates, general economic and business
conditions; legislative/regulatory changes; the monetary and fiscal
policies of the U.S. government, including policies of the U.S.
Treasury and the Board of Governors of the Federal Reserve System;
the quality and composition of TowneBank’s loan and securities
portfolios; demand for loan products; deposit flows; competition;
demand for financial services in TowneBank’s market area;
implementation of new technologies and the ability to develop and
maintain secure and reliable electronic systems; changes in the
securities markets; changes in accounting principles, policies and
guidelines; and other risk factors detailed from time to time in
filings made by TowneBank with the Federal Deposit Insurance
Corporation. TowneBank undertakes no obligation to update or
clarify these forward-looking statements, whether as a result of
new information, future events or otherwise.
Media contact:G. Robert Aston,
Jr., Executive Chairman, 757-638-6780J. Morgan Davis, President and
Chief Executive Officer, 757-673-1673
Investor contact:William B.
Littreal, Chief Financial Officer, 757-638-6813
|
TOWNEBANK |
Selected Financial Highlights (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
Income and
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
192,135 |
|
|
$ |
162,656 |
|
|
$ |
137,696 |
|
|
$ |
139,671 |
|
|
$ |
145,879 |
|
|
Net income |
50,715 |
|
|
37,222 |
|
|
27,605 |
|
|
35,948 |
|
|
39,400 |
|
|
Net income available to common
shareholders |
34,464 |
|
|
34,605 |
|
|
26,384 |
|
|
35,075 |
|
|
37,659 |
|
|
Pre-provision, pre-tax, net
revenues (non-GAAP) |
73,903 |
|
|
69,014 |
|
|
39,587 |
|
|
46,462 |
|
|
46,851 |
|
|
Net income per common share -
diluted |
0.48 |
|
|
0.48 |
|
|
0.36 |
|
|
0.49 |
|
|
0.52 |
|
|
Book value per common
share |
23.83 |
|
|
23.50 |
|
|
22.77 |
|
|
22.58 |
|
|
22.38 |
|
|
Book value per common share -
tangible (non-GAAP) |
17.06 |
|
|
16.68 |
|
|
15.91 |
|
|
15.69 |
|
|
15.44 |
|
|
Return on average assets |
0.89 |
% |
|
0.97 |
% |
|
0.88 |
% |
|
1.16 |
% |
|
1.26 |
% |
|
Return on average assets -
tangible (non-GAAP) |
0.97 |
% |
|
1.07 |
% |
|
1.00 |
% |
|
1.30 |
% |
|
1.40 |
% |
|
Return on average equity |
7.85 |
% |
|
8.18 |
% |
|
6.37 |
% |
|
8.44 |
% |
|
9.22 |
% |
|
Return on average equity -
tangible (non-GAAP) |
11.66 |
% |
|
12.32 |
% |
|
9.91 |
% |
|
12.97 |
% |
|
14.20 |
% |
|
Return on average common
equity |
7.91 |
% |
|
8.24 |
% |
|
6.42 |
% |
|
8.51 |
% |
|
9.29 |
% |
|
Return on average common
equity - tangible (non-GAAP) |
11.79 |
% |
|
12.44 |
% |
|
10.01 |
% |
|
13.12 |
% |
|
14.36 |
% |
|
Noninterest income as a
percentage of total revenue |
49.64 |
% |
|
42.66 |
% |
|
35.00 |
% |
|
35.59 |
% |
|
37.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
Regulatory
Capital Ratios (1): |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 |
11.75 |
% |
|
11.54 |
% |
|
11.23 |
% |
|
11.46 |
% |
|
11.52 |
% |
|
Tier 1 |
11.91 |
% |
|
11.67 |
% |
|
11.35 |
% |
|
11.49 |
% |
|
11.55 |
% |
|
Total |
15.33 |
% |
|
14.91 |
% |
|
14.40 |
% |
|
14.58 |
% |
|
14.70 |
% |
|
Tier 1 leverage ratio |
8.89 |
% |
|
9.05 |
% |
|
10.11 |
% |
|
9.95 |
% |
|
9.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
7.31x |
|
|
5.34x |
|
|
3.85x |
|
|
3.34x |
|
|
3.95x |
|
|
Allowance for credit losses on
loans to period end loans |
1.22 |
% |
|
0.92 |
% |
|
0.73 |
% |
|
0.69 |
% |
|
0.68 |
% |
|
Allowance for credit losses on
loans to period end loans excluding PPP loans (non-GAAP) |
1.37 |
% |
|
1.04 |
% |
|
0.73 |
% |
|
0.69 |
% |
|
0.68 |
% |
|
Nonperforming loans to period
end loans |
0.17 |
% |
|
0.17 |
% |
|
0.19 |
% |
|
0.21 |
% |
|
0.17 |
% |
|
Nonperforming assets to period
end assets |
0.19 |
% |
|
0.19 |
% |
|
0.24 |
% |
|
0.27 |
% |
|
0.26 |
% |
|
Net charge-offs (recoveries)
to average loans (annualized) |
(0.01 |
)% |
|
— |
% |
|
0.03 |
% |
|
0.04 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
16,295 |
|
|
$ |
16,935 |
|
|
$ |
16,700 |
|
|
$ |
17,437 |
|
|
$ |
14,016 |
|
|
Former bank premises |
750 |
|
|
— |
|
|
— |
|
|
1,521 |
|
|
1,510 |
|
|
Foreclosed property |
11,695 |
|
|
12,315 |
|
|
13,053 |
|
|
13,839 |
|
|
15,517 |
|
|
Total nonperforming
assets |
$ |
28,740 |
|
|
$ |
29,250 |
|
|
$ |
29,753 |
|
|
$ |
32,797 |
|
|
$ |
31,043 |
|
|
Loans past due 90 days and
still accruing interest |
$ |
19 |
|
|
$ |
464 |
|
|
$ |
91 |
|
|
$ |
309 |
|
|
$ |
636 |
|
|
Allowance for credit losses on
loans |
$ |
119,058 |
|
|
$ |
90,467 |
|
|
$ |
64,372 |
|
|
$ |
58,234 |
|
|
$ |
55,428 |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking: |
|
|
|
|
|
|
|
|
|
|
Loans originated, mortgage |
$ |
1,292,801 |
|
|
$ |
1,116,782 |
|
|
$ |
718,681 |
|
|
$ |
628,279 |
|
|
$ |
703,922 |
|
|
Loans originated, joint
venture |
498,100 |
|
|
357,815 |
|
|
204,522 |
|
|
231,879 |
|
|
259,742 |
|
|
Total loans originated |
$ |
1,790,901 |
|
|
$ |
1,474,597 |
|
|
$ |
923,203 |
|
|
$ |
860,158 |
|
|
$ |
963,664 |
|
|
Number of loans
originated |
5,817 |
|
|
4,818 |
|
|
3,025 |
|
|
2,984 |
|
|
3,360 |
|
|
Number of originators |
224 |
|
|
216 |
|
|
223 |
|
|
217 |
|
|
225 |
|
|
Purchase % |
61.21 |
% |
|
51.26 |
% |
|
61.31 |
% |
|
70.32 |
% |
|
68.83 |
% |
|
Loans sold |
$ |
1,833,590 |
|
|
$ |
1,398,649 |
|
|
$ |
809,834 |
|
|
$ |
879,910 |
|
|
$ |
925,058 |
|
|
Gross realized gain on sales
and fees as a % of loans originated |
3.65 |
% |
|
3.17 |
% |
|
1.80 |
% |
|
3.38 |
% |
|
3.45 |
% |
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
2.70 |
% |
|
2.85 |
% |
|
3.35 |
% |
|
3.33 |
% |
|
3.41 |
% |
|
Net interest margin-fully tax
equivalent (non-GAAP) |
2.72 |
% |
|
2.87 |
% |
|
3.37 |
% |
|
3.35 |
% |
|
3.43 |
% |
|
Average earning assets/total
average assets |
92.09 |
% |
|
91.33 |
% |
|
89.15 |
% |
|
89.57 |
% |
|
89.53 |
% |
|
Average loans/average
deposits |
86.29 |
% |
|
91.81 |
% |
|
92.99 |
% |
|
88.41 |
% |
|
87.63 |
% |
|
Average noninterest
deposits/total average deposits |
37.76 |
% |
|
36.52 |
% |
|
32.21 |
% |
|
32.14 |
% |
|
31.82 |
% |
|
Period end equity/period end
total assets |
11.82 |
% |
|
11.05 |
% |
|
13.19 |
% |
|
13.84 |
% |
|
13.63 |
% |
|
Efficiency ratio (non-GAAP) |
53.55 |
% |
|
56.99 |
% |
|
73.02 |
% |
|
66.11 |
% |
|
66.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Current
reporting period regulatory capital ratios are preliminary |
|
|
|
|
|
|
|
TOWNEBANK |
Selected Data (unaudited) |
(dollars in thousands) |
|
Investment Securities |
|
|
|
|
|
|
% Change |
|
Q3 |
|
Q3 |
|
Q2 |
|
Q3 20 vs. |
|
Q3 20 vs. |
Available-for-sale
securities, at fair value |
2020 |
|
2019 |
|
2020 |
|
Q3 19 |
|
Q2 20 |
U.S. agency securities |
$ |
167,275 |
|
|
|
$ |
152,581 |
|
|
|
$ |
118,176 |
|
|
|
9.63 |
% |
|
41.55 |
% |
U.S. Treasury notes |
1,006 |
|
|
|
999 |
|
|
|
1,010 |
|
|
|
0.70 |
% |
|
(0.40 |
)% |
Municipal securities |
292,792 |
|
|
|
173,519 |
|
|
|
313,322 |
|
|
|
68.74 |
% |
|
(6.55 |
)% |
Trust preferred and other
corporate securities |
24,236 |
|
|
|
52,006 |
|
|
|
59,598 |
|
|
|
(53.40 |
)% |
|
(59.33 |
)% |
Mortgage-backed securities
issued by GSE and GNMA |
825,378 |
|
|
|
958,290 |
|
|
|
774,658 |
|
|
|
(13.87 |
)% |
|
6.55 |
% |
Allowance for credit
losses |
(4 |
) |
|
|
n/a |
|
(140 |
) |
|
|
n/a |
|
(97.14 |
)% |
Total |
$ |
1,310,683 |
|
|
|
$ |
1,337,395 |
|
|
|
$ |
1,266,624 |
|
|
|
(2.00 |
)% |
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
Gross unrealized gains
(losses) reflected in financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross unrealized
gains |
$ |
62,206 |
|
|
|
$ |
28,114 |
|
|
|
$ |
61,559 |
|
|
|
121.26 |
% |
|
1.05 |
% |
Total gross unrealized
losses |
(773 |
) |
|
|
(2,046 |
) |
|
|
(1,674 |
) |
|
|
(62.22 |
)% |
|
(53.82 |
)% |
Net unrealized gains (losses)
and other adjustments on AFS securities |
$ |
61,433 |
|
|
|
$ |
26,068 |
|
|
|
$ |
59,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities, at amortized cost |
|
|
|
|
|
|
|
|
|
Municipal securities |
$ |
2,333 |
|
|
|
$ |
29,166 |
|
|
|
$ |
28,855 |
|
|
|
(92.00 |
)% |
|
(91.91 |
)% |
Trust preferred corporate
securities |
4,992 |
|
|
|
2,381 |
|
|
|
2,345 |
|
|
|
109.66 |
% |
|
112.88 |
% |
Mortgage-backed securities
issued by GSE and GNMA |
9,806 |
|
|
|
12,947 |
|
|
|
10,395 |
|
|
|
(24.26 |
)% |
|
(5.67 |
)% |
Allowance for credit
losses |
(90 |
) |
|
|
n/a |
|
(121 |
) |
|
|
n/a |
|
(25.62 |
)% |
Total |
$ |
17,041 |
|
|
|
$ |
44,494 |
|
|
|
$ |
41,474 |
|
|
|
(61.70 |
)% |
|
(58.91 |
)% |
|
|
|
|
|
|
|
|
|
|
Gross unrealized gains
(losses) not reflected in financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
Total gross unrealized
gains |
$ |
1,971 |
|
|
|
$ |
1,688 |
|
|
|
$ |
1,980 |
|
|
|
16.77 |
% |
|
(0.45 |
)% |
Total gross unrealized
losses |
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(100.00 |
)% |
|
— |
% |
Net unrealized gains (losses)
in HTM securities |
$ |
1,971 |
|
|
|
$ |
1,683 |
|
|
|
$ |
1,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held For
Investment (1) |
|
|
|
|
|
|
% Change |
|
Q3 |
|
Q3 |
|
Q2 |
|
Q3 20 vs. |
|
Q3 20 vs. |
|
2020 |
|
2019 |
|
2020 |
|
Q3 19 |
|
Q2 20 |
Real estate - construction and
development |
$ |
1,143,202 |
|
|
|
$ |
1,142,225 |
|
|
|
$ |
1,178,832 |
|
|
|
0.09 |
% |
|
(3.02 |
)% |
Commercial real estate - non
owner occupied |
2,338,532 |
|
|
|
2,070,317 |
|
|
|
2,332,447 |
|
|
|
12.96 |
% |
|
0.26 |
% |
Commercial real estate - owner
occupied |
1,378,443 |
|
|
|
1,286,137 |
|
|
|
1,383,294 |
|
|
|
7.18 |
% |
|
(0.35 |
)% |
Real estate - multifamily |
289,270 |
|
|
|
219,901 |
|
|
|
277,947 |
|
|
|
31.55 |
% |
|
4.07 |
% |
Real estate - residential 1-4
family and HELOC |
1,660,535 |
|
|
|
1,621,175 |
|
|
|
1,670,530 |
|
|
|
2.43 |
% |
|
(0.60 |
)% |
Commercial and industrial
business |
2,499,801 |
|
|
|
1,527,515 |
|
|
|
2,503,161 |
|
|
|
63.65 |
% |
|
(0.13 |
)% |
Consumer and other loans |
460,787 |
|
|
|
315,559 |
|
|
|
455,678 |
|
|
|
46.02 |
% |
|
1.12 |
% |
Total |
$ |
9,770,570 |
|
|
|
$ |
8,182,829 |
|
|
|
$ |
9,801,889 |
|
|
|
19.40 |
% |
|
(0.32 |
)% |
(1) Paycheck
Protection Program loans totaling $1.10 billion and $1.09 billion,
primarily in C&I, are included in Q3 2020 and Q2 2020,
respectively. |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
% Change |
|
Q3 |
|
Q3 |
|
Q2 |
|
Q3 20 vs. |
|
Q3 20 vs. |
|
2020 |
|
2019 |
|
2020 |
|
Q3 19 |
|
Q2 20 |
Noninterest-bearing
demand |
$ |
4,464,178 |
|
|
|
$ |
3,030,505 |
|
|
|
$ |
4,226,208 |
|
|
|
47.31 |
% |
|
5.63 |
% |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
4,642,482 |
|
|
|
3,534,252 |
|
|
|
4,223,391 |
|
|
|
31.36 |
% |
|
9.92 |
% |
Savings |
312,444 |
|
|
|
280,552 |
|
|
|
298,673 |
|
|
|
11.37 |
% |
|
4.61 |
% |
Certificates of deposits |
2,285,859 |
|
|
|
2,592,705 |
|
|
|
2,516,666 |
|
|
|
(11.83 |
)% |
|
(9.17 |
)% |
Total |
$ |
11,704,963 |
|
|
|
$ |
9,438,014 |
|
|
|
$ |
11,264,938 |
|
|
|
24.02 |
% |
|
3.91 |
% |
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (net of unearned income
and deferred costs), excluding nonaccrual loans (1) |
$ |
9,752,746 |
|
|
|
$ |
103,401 |
|
|
|
4.22 |
% |
|
$ |
9,619,931 |
|
|
|
$ |
102,656 |
|
|
|
4.29 |
% |
|
$ |
8,096,908 |
|
|
|
$ |
102,495 |
|
|
|
5.02 |
% |
Taxable investment securities |
1,206,679 |
|
|
|
6,726 |
|
|
|
2.23 |
% |
|
1,198,776 |
|
|
|
7,367 |
|
|
|
2.46 |
% |
|
1,266,447 |
|
|
|
9,087 |
|
|
|
2.87 |
% |
Tax-exempt investment securities |
144,999 |
|
|
|
779 |
|
|
|
2.15 |
% |
|
147,489 |
|
|
|
836 |
|
|
|
2.27 |
% |
|
121,738 |
|
|
|
997 |
|
|
|
3.28 |
% |
Total securities |
1,351,678 |
|
|
|
7,505 |
|
|
|
2.22 |
% |
|
1,346,265 |
|
|
|
8,203 |
|
|
|
2.44 |
% |
|
1,388,185 |
|
|
|
10,084 |
|
|
|
2.91 |
% |
Interest-bearing deposits |
2,523,644 |
|
|
|
632 |
|
|
|
0.10 |
% |
|
1,729,140 |
|
|
|
433 |
|
|
|
0.10 |
% |
|
711,030 |
|
|
|
3,745 |
|
|
|
2.09 |
% |
Loans held for sale |
634,309 |
|
|
|
4,587 |
|
|
|
2.89 |
% |
|
464,796 |
|
|
|
3,811 |
|
|
|
3.28 |
% |
|
408,377 |
|
|
|
3,956 |
|
|
|
3.87 |
% |
Total earning assets |
14,262,377 |
|
|
|
116,125 |
|
|
|
3.24 |
% |
|
13,160,132 |
|
|
|
115,103 |
|
|
|
3.52 |
% |
|
10,604,500 |
|
|
|
120,280 |
|
|
|
4.50 |
% |
Less: allowance for credit
losses |
(95,594 |
) |
|
|
|
|
|
|
(69,451 |
) |
|
|
|
|
|
|
(54,858 |
) |
|
|
|
|
|
Total nonearning assets |
1,320,369 |
|
|
|
|
|
|
|
1,318,787 |
|
|
|
|
|
|
|
1,295,640 |
|
|
|
|
|
|
Total assets |
$ |
15,487,152 |
|
|
|
|
|
|
|
$ |
14,409,468 |
|
|
|
|
|
|
|
$ |
11,845,282 |
|
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
4,311,920 |
|
|
|
$ |
2,663 |
|
|
|
0.25 |
% |
|
$ |
3,857,757 |
|
|
|
$ |
2,491 |
|
|
|
0.26 |
% |
|
$ |
3,379,888 |
|
|
|
$ |
7,223 |
|
|
|
0.85 |
% |
Savings |
304,753 |
|
|
|
555 |
|
|
|
0.72 |
% |
|
290,201 |
|
|
|
554 |
|
|
|
0.77 |
% |
|
278,048 |
|
|
|
702 |
|
|
|
1.00 |
% |
Certificates of deposit |
2,417,772 |
|
|
|
9,747 |
|
|
|
1.60 |
% |
|
2,503,648 |
|
|
|
12,027 |
|
|
|
1.93 |
% |
|
2,641,681 |
|
|
|
15,627 |
|
|
|
2.35 |
% |
Total interest-bearing
deposits |
7,034,445 |
|
|
|
12,965 |
|
|
|
0.73 |
% |
|
6,651,606 |
|
|
|
15,072 |
|
|
|
0.91 |
% |
|
6,299,617 |
|
|
|
23,552 |
|
|
|
1.48 |
% |
Borrowings |
1,931,120 |
|
|
|
2,841 |
|
|
|
0.58 |
% |
|
1,741,832 |
|
|
|
3,238 |
|
|
|
0.74 |
% |
|
486,644 |
|
|
|
2,020 |
|
|
|
1.62 |
% |
Subordinated debt, net |
248,807 |
|
|
|
2,962 |
|
|
|
4.76 |
% |
|
248,660 |
|
|
|
2,962 |
|
|
|
4.76 |
% |
|
248,210 |
|
|
|
2,962 |
|
|
|
4.77 |
% |
Total interest-bearing liabilities |
9,214,372 |
|
|
|
18,768 |
|
|
|
0.81 |
% |
|
8,642,098 |
|
|
|
21,272 |
|
|
|
0.99 |
% |
|
7,034,471 |
|
|
|
28,534 |
|
|
|
1.61 |
% |
Demand deposits |
4,268,443 |
|
|
|
|
|
|
|
3,826,439 |
|
|
|
|
|
|
|
2,940,370 |
|
|
|
|
|
|
Other noninterest-bearing
liabilities |
257,304 |
|
|
|
|
|
|
|
239,154 |
|
|
|
|
|
|
|
250,371 |
|
|
|
|
|
|
Total liabilities |
13,740,119 |
|
|
|
|
|
|
|
12,707,691 |
|
|
|
|
|
|
|
10,225,212 |
|
|
|
|
|
|
Shareholders’ equity |
1,747,033 |
|
|
|
|
|
|
|
1,701,777 |
|
|
|
|
|
|
|
1,620,070 |
|
|
|
|
|
|
Total liabilities and
equity |
$ |
15,487,152 |
|
|
|
|
|
|
|
$ |
14,409,468 |
|
|
|
|
|
|
|
$ |
11,845,282 |
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) |
|
|
$ |
97,357 |
|
|
|
|
|
|
|
$ |
93,831 |
|
|
|
|
|
|
|
$ |
91,746 |
|
|
|
|
Reconcilement of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
(598 |
) |
|
|
|
|
|
|
(557 |
) |
|
|
|
|
|
|
(643 |
) |
|
|
|
Net interest income
(GAAP) |
|
|
$ |
96,759 |
|
|
|
|
|
|
|
$ |
93,274 |
|
|
|
|
|
|
|
$ |
91,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(2)(4) |
|
|
|
|
2.43 |
% |
|
|
|
|
|
2.53 |
% |
|
|
|
|
|
2.89 |
% |
Interest expense as a percent
of average earning assets |
|
|
|
|
|
|
|
0.52 |
% |
|
|
|
|
|
0.65 |
% |
|
|
|
|
|
1.07 |
% |
Net interest margin (tax
equivalent basis) (3)(4) |
|
|
|
|
|
|
|
2.72 |
% |
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
3.43 |
% |
Total cost of deposits |
|
|
|
|
0.46 |
% |
|
|
|
|
|
0.58 |
% |
|
|
|
|
|
1.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes average PPP balances of $1.10 billion and related
interest and fee income of $9.82 million.(2) Interest spread is the
average yield earned on earning assets less the average rate paid
on interest-bearing liabilities. Fully tax equivalent.(3) Net
interest margin is net interest income expressed as a percentage of
average earning assets. Fully tax equivalent.(4)
Non-GAAP.
|
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
|
Nine Months Ended |
|
Nine Months Ended |
|
Nine Months Ended September 30, |
|
|
September 30, 2020 |
|
September 30, 2019 |
|
2020 Compared with 2019 |
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
|
|
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Increase |
|
Change Due to |
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
(Decrease) |
|
Rate |
|
Volume |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (net of unearned income and deferred costs), excluding
nonaccrual loans (1) |
|
$ |
9,309,256 |
|
|
|
$ |
306,622 |
|
|
|
4.40 |
% |
|
$ |
8,067,894 |
|
|
|
$ |
305,007 |
|
|
|
5.05 |
% |
|
$ |
1,615 |
|
|
|
$ |
(42,206 |
) |
|
|
$ |
43,822 |
|
|
Taxable investment securities |
|
1,253,783 |
|
|
|
23,304 |
|
|
|
2.48 |
% |
|
1,158,611 |
|
|
|
24,962 |
|
|
|
2.87 |
% |
|
(1,658 |
) |
|
|
(3,603 |
) |
|
|
1,945 |
|
|
Tax-exempt investment securities |
|
140,248 |
|
|
|
2,476 |
|
|
|
2.35 |
% |
|
97,485 |
|
|
|
2,519 |
|
|
|
3.45 |
% |
|
(43 |
) |
|
|
(944 |
) |
|
|
902 |
|
|
Total securities |
|
1,394,031 |
|
|
|
25,780 |
|
|
|
2.47 |
% |
|
1,256,096 |
|
|
|
27,481 |
|
|
|
2.92 |
% |
|
(1,701 |
) |
|
|
(4,547 |
) |
|
|
2,847 |
|
|
Interest-bearing deposits |
|
615,466 |
|
|
|
2,168 |
|
|
|
0.47 |
% |
|
700,840 |
|
|
|
11,758 |
|
|
|
2.24 |
% |
|
(9,590 |
) |
|
|
(8,309 |
) |
|
|
(1,281 |
) |
|
Loans held for sale |
|
477,964 |
|
|
|
11,386 |
|
|
|
3.18 |
% |
|
290,384 |
|
|
|
8,966 |
|
|
|
4.12 |
% |
|
2,420 |
|
|
|
(2,394 |
) |
|
|
4,814 |
|
|
Total earning assets |
|
11,796,717 |
|
|
|
345,956 |
|
|
|
3.92 |
% |
|
10,315,214 |
|
|
|
353,212 |
|
|
|
4.58 |
% |
|
(7,256 |
) |
|
|
(57,456 |
) |
|
|
50,202 |
|
|
Less: allowance for loan losses |
|
(73,538 |
) |
|
|
|
|
|
|
(53,703 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total nonearning assets |
|
2,264,295 |
|
|
|
|
|
|
|
1,264,976 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
13,987,474 |
|
|
|
|
|
|
|
$ |
11,526,487 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
|
$ |
3,898,642 |
|
|
|
$ |
10,472 |
|
|
|
0.36 |
% |
|
$ |
3,289,539 |
|
|
|
$ |
20,488 |
|
|
|
0.83 |
% |
|
$ |
(10,016 |
) |
|
|
$ |
(13,287 |
) |
|
|
$ |
3,271 |
|
|
Savings |
|
290,684 |
|
|
|
1,702 |
|
|
|
0.78 |
% |
|
281,562 |
|
|
|
2,658 |
|
|
|
1.26 |
% |
|
(956 |
) |
|
|
(1,040 |
) |
|
|
84 |
|
|
Certificates of deposit |
|
2,451,715 |
|
|
|
34,925 |
|
|
|
1.90 |
% |
|
2,456,360 |
|
|
|
41,364 |
|
|
|
2.25 |
% |
|
(6,439 |
) |
|
|
(6,362 |
) |
|
|
(78 |
) |
|
Total interest-bearing
deposits |
|
6,641,041 |
|
|
|
47,099 |
|
|
|
0.95 |
% |
|
6,027,461 |
|
|
|
64,510 |
|
|
|
1.43 |
% |
|
(17,411 |
) |
|
|
(20,689 |
) |
|
|
3,277 |
|
|
Borrowings |
|
1,452,652 |
|
|
|
8,661 |
|
|
|
0.78 |
% |
|
661,216 |
|
|
|
9,559 |
|
|
|
1.91 |
% |
|
(898 |
) |
|
|
(7,871 |
) |
|
|
6,973 |
|
|
Subordinated debt, net |
|
248,660 |
|
|
|
8,885 |
|
|
|
4.76 |
% |
|
248,064 |
|
|
|
8,885 |
|
|
|
4.78 |
% |
|
— |
|
|
|
(22 |
) |
|
|
21 |
|
|
Total interest-bearing
liabilities |
|
8,342,353 |
|
|
|
64,645 |
|
|
|
1.04 |
% |
|
6,936,741 |
|
|
|
82,954 |
|
|
|
1.60 |
% |
|
(18,309 |
) |
|
|
(28,582 |
) |
|
|
10,271 |
|
|
Demand deposits |
|
3,687,791 |
|
|
|
|
|
|
|
2,787,727 |
|
|
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing
liabilities |
|
252,337 |
|
|
|
|
|
|
|
221,806 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
12,282,481 |
|
|
|
|
|
|
|
9,946,274 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
1,704,993 |
|
|
|
|
|
|
|
1,580,213 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
13,987,474 |
|
|
|
|
|
|
|
$ |
11,526,487 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) |
|
|
|
$ |
281,311 |
|
|
|
|
|
|
|
$ |
270,258 |
|
|
|
|
|
$ |
11,053 |
|
|
|
$ |
(28,874 |
) |
|
|
$ |
39,931 |
|
|
Reconcilement of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(1,781 |
) |
|
|
|
|
|
|
(1,862 |
) |
|
|
|
|
81 |
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
|
$ |
279,530 |
|
|
|
|
|
|
|
$ |
268,396 |
|
|
|
|
|
$ |
11,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(2)(4) |
|
|
|
|
|
2.88 |
% |
|
|
|
|
|
2.98 |
% |
|
|
|
|
|
|
Interest expense as a percent
of average earning assets |
|
|
|
|
|
|
|
|
0.73 |
% |
|
|
|
|
|
1.08 |
% |
|
|
|
|
|
|
Net interest margin (tax
equivalent basis) (3)(4) |
|
|
|
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
Total cost of deposits |
|
|
|
|
|
0.61 |
% |
|
|
|
|
|
0.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes average PPP balances of $0.64 billion and related
interest income of $15.65 million |
(2)
Interest spread is the average yield earned on earning assets less
the average rate paid on interest-bearing liabilities. Fully
tax equivalent. |
(3) Net
interest margin is net interest income expressed as a percentage of
average earning assets. Fully tax equivalent. |
(4)
Non-GAAP. |
|
TOWNEBANK |
Consolidated Balance Sheets |
(dollars in thousands, except share data) |
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
Cash and due from banks |
$ |
114,604 |
|
|
|
$ |
97,593 |
|
|
Interest-bearing deposits at
FRB - Richmond |
1,670,186 |
|
|
|
322,505 |
|
|
Interest-bearing deposits in
financial institutions |
24,890 |
|
|
|
22,518 |
|
|
Total Cash and Cash Equivalents |
1,809,680 |
|
|
|
442,616 |
|
|
Securities available for sale,
at fair value (amortized cost $1,249,254, allowance for credit
losses of $4) (1) |
1,310,683 |
|
|
|
1,441,308 |
|
|
Securities held to maturity,
at amortized cost (fair value $19,102 )(1) |
17,131 |
|
|
|
43,688 |
|
|
Less: allowance for credit losses |
(90 |
) |
|
|
— |
|
|
Securities held to maturity, net of allowance for credit
losses |
17,041 |
|
|
|
43,688 |
|
|
Other equity securities |
6,497 |
|
|
|
6,462 |
|
|
FHLB stock |
41,829 |
|
|
|
30,094 |
|
|
Total Securities |
1,376,050 |
|
|
|
1,521,552 |
|
|
Mortgage loans held for
sale |
669,020 |
|
|
|
419,233 |
|
|
Loans, net of unearned income
and deferred costs |
9,770,570 |
|
|
|
8,419,288 |
|
|
Less: allowance for credit losses |
(119,058 |
) |
|
|
(58,234 |
) |
|
Net Loans |
9,651,512 |
|
|
|
8,361,054 |
|
|
Premises and equipment,
net |
256,909 |
|
|
|
231,806 |
|
|
Goodwill |
446,725 |
|
|
|
446,816 |
|
|
Other intangible assets,
net |
45,781 |
|
|
|
54,399 |
|
|
BOLI |
244,103 |
|
|
|
243,062 |
|
|
Other assets |
295,637 |
|
|
|
227,125 |
|
|
TOTAL ASSETS |
$ |
14,795,417 |
|
|
|
$ |
11,947,663 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
Noninterest-bearing demand |
$ |
4,464,178 |
|
|
|
$ |
2,951,225 |
|
|
Interest-bearing: |
|
|
|
Demand and money market accounts |
4,642,482 |
|
|
|
3,586,364 |
|
|
Savings |
312,444 |
|
|
|
276,205 |
|
|
Certificates of deposit |
2,285,859 |
|
|
|
2,457,123 |
|
|
Total Deposits |
11,704,963 |
|
|
|
9,270,917 |
|
|
Advances from the FHLB |
731,202 |
|
|
|
471,687 |
|
|
Subordinated debt, net |
248,906 |
|
|
|
248,458 |
|
|
Repurchase agreements and
other borrowings |
58,061 |
|
|
|
52,391 |
|
|
Total Borrowings |
1,038,169 |
|
|
|
772,536 |
|
|
Other liabilities |
303,582 |
|
|
|
250,516 |
|
|
TOTAL LIABILITIES |
13,046,714 |
|
|
|
10,293,969 |
|
|
Preferred stock |
|
|
|
Authorized and unissued shares - 2,000,000 |
— |
|
|
|
— |
|
|
Common stock, $1.667 par:
150,000,000 shares authorized 72,656,729 and 72,649,682 shares
issued at September 30, 2020 and December 31, 2019,
respectively |
121,115 |
|
|
|
121,107 |
|
|
Capital surplus |
1,045,170 |
|
|
|
1,041,160 |
|
|
Retained earnings |
520,888 |
|
|
|
467,186 |
|
|
Common stock issued to
deferred compensation trust, at cost 872,498 and 818,578 shares at
September 30, 2020 and December 31, 2019, respectively |
(16,951 |
) |
|
|
(15,555 |
) |
|
Deferred compensation
trust |
16,951 |
|
|
|
15,555 |
|
|
Accumulated other
comprehensive income (loss) |
44,569 |
|
|
|
11,302 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
1,731,742 |
|
|
|
1,640,755 |
|
|
Noncontrolling interest |
16,961 |
|
|
|
12,939 |
|
|
TOTAL EQUITY |
1,748,703 |
|
|
|
1,653,694 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
14,795,417 |
|
|
|
$ |
11,947,663 |
|
|
(1) For 2020,
disclosures are presented in compliance with ASC 326. |
|
TOWNEBANK |
Consolidated Statements of Income (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
INTEREST
INCOME: |
|
|
|
|
|
|
|
Loans, including fees |
$ |
102,869 |
|
|
|
$ |
102,047 |
|
|
|
$ |
305,070 |
|
|
|
$ |
303,616 |
|
|
Investment securities |
7,440 |
|
|
|
9,889 |
|
|
|
25,553 |
|
|
|
27,010 |
|
|
Interest-bearing deposits in financial institutions and federal
funds sold |
632 |
|
|
|
3,745 |
|
|
|
2,168 |
|
|
|
11,758 |
|
|
Mortgage loans held for sale |
4,587 |
|
|
|
3,956 |
|
|
|
11,385 |
|
|
|
8,966 |
|
|
Total interest income |
115,528 |
|
|
|
119,637 |
|
|
|
344,176 |
|
|
|
351,350 |
|
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Deposits |
12,966 |
|
|
|
23,552 |
|
|
|
47,099 |
|
|
|
64,510 |
|
|
Advances from the FHLB |
1,901 |
|
|
|
1,935 |
|
|
|
6,990 |
|
|
|
9,288 |
|
|
Subordinated debt, net |
2,962 |
|
|
|
2,962 |
|
|
|
8,885 |
|
|
|
8,885 |
|
|
Repurchase agreements and other borrowings |
940 |
|
|
|
85 |
|
|
|
1,672 |
|
|
|
271 |
|
|
Total interest expense |
18,769 |
|
|
|
28,534 |
|
|
|
64,646 |
|
|
|
82,954 |
|
|
Net interest
income |
96,759 |
|
|
|
91,103 |
|
|
|
279,530 |
|
|
|
268,396 |
|
|
|
|
|
|
|
|
|
|
PROVISION FOR CREDIT
LOSSES |
31,598 |
|
|
|
1,508 |
|
|
|
65,559 |
|
|
|
5,770 |
|
|
Net interest income after provision for credit
losses |
65,161 |
|
|
|
89,595 |
|
|
|
213,971 |
|
|
|
262,626 |
|
|
NONINTEREST
INCOME: |
|
|
|
|
|
|
|
Residential mortgage banking income, net |
37,531 |
|
|
|
18,855 |
|
|
|
74,662 |
|
|
|
50,929 |
|
|
Insurance commissions and other title fees and income, net |
17,468 |
|
|
|
16,681 |
|
|
|
51,973 |
|
|
|
49,477 |
|
|
Real estate brokerage and property management income, net |
11,301 |
|
|
|
9,444 |
|
|
|
29,020 |
|
|
|
27,555 |
|
|
Service charges on deposit accounts |
1,986 |
|
|
|
2,253 |
|
|
|
6,314 |
|
|
|
8,299 |
|
|
Credit card merchant fees, net |
1,506 |
|
|
|
1,514 |
|
|
|
3,793 |
|
|
|
3,357 |
|
|
BOLI |
1,605 |
|
|
|
2,117 |
|
|
|
6,295 |
|
|
|
5,350 |
|
|
Other income |
22,278 |
|
|
|
3,981 |
|
|
|
31,268 |
|
|
|
11,754 |
|
|
Net gain/(loss) on investment securities |
1,701 |
|
|
|
(69 |
) |
|
|
9,632 |
|
|
|
(845 |
) |
|
Total noninterest income |
95,376 |
|
|
|
54,776 |
|
|
|
212,957 |
|
|
|
155,876 |
|
|
NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee benefits |
61,408 |
|
|
|
55,784 |
|
|
|
174,201 |
|
|
|
162,907 |
|
|
Occupancy expense |
8,396 |
|
|
|
7,953 |
|
|
|
23,124 |
|
|
|
23,866 |
|
|
Furniture and equipment |
3,247 |
|
|
|
3,805 |
|
|
|
10,451 |
|
|
|
10,753 |
|
|
Amortization - intangibles |
2,851 |
|
|
|
3,059 |
|
|
|
8,702 |
|
|
|
9,364 |
|
|
Software expense |
3,572 |
|
|
|
3,208 |
|
|
|
10,556 |
|
|
|
8,742 |
|
|
Data processing |
3,113 |
|
|
|
2,533 |
|
|
|
8,622 |
|
|
|
9,316 |
|
|
Professional fees |
2,637 |
|
|
|
3,566 |
|
|
|
8,677 |
|
|
|
9,952 |
|
|
Advertising and marketing |
1,870 |
|
|
|
3,429 |
|
|
|
7,440 |
|
|
|
9,440 |
|
|
Other expenses |
14,887 |
|
|
|
13,950 |
|
|
|
38,121 |
|
|
|
41,627 |
|
|
Total noninterest expense |
101,981 |
|
|
|
97,287 |
|
|
|
289,894 |
|
|
|
285,967 |
|
|
Income before income
tax expense and noncontrolling interest |
58,556 |
|
|
|
47,084 |
|
|
|
137,034 |
|
|
|
132,535 |
|
|
Provision for income tax
expense |
7,841 |
|
|
|
7,684 |
|
|
|
21,492 |
|
|
|
24,810 |
|
|
Net
income |
$ |
50,715 |
|
|
|
$ |
39,400 |
|
|
|
$ |
115,542 |
|
|
|
$ |
107,725 |
|
|
Net income attributable to
noncontrolling interest |
(16,251 |
) |
|
|
(1,741 |
) |
|
|
(20,089 |
) |
|
|
(4,018 |
) |
|
Net income
attributable to TowneBank |
$ |
34,464 |
|
|
|
$ |
37,659 |
|
|
|
$ |
95,453 |
|
|
|
$ |
103,707 |
|
|
Per common share
information |
|
|
|
|
|
|
|
Basic earnings |
$ |
0.48 |
|
|
|
$ |
0.52 |
|
|
|
$ |
1.32 |
|
|
|
$ |
1.44 |
|
|
Diluted earnings |
$ |
0.48 |
|
|
|
$ |
0.52 |
|
|
|
$ |
1.32 |
|
|
|
$ |
1.44 |
|
|
Cash dividends declared |
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.54 |
|
|
|
$ |
0.52 |
|
|
|
TOWNEBANK |
Consolidated Balance Sheets - Five Quarter
Trend |
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
114,604 |
|
|
|
$ |
115,724 |
|
|
|
$ |
108,929 |
|
|
|
$ |
97,593 |
|
|
|
$ |
124,439 |
|
|
Interest-bearing deposits at
FRB - Richmond |
1,670,186 |
|
|
|
2,511,152 |
|
|
|
753,643 |
|
|
|
322,505 |
|
|
|
675,288 |
|
|
Interest-bearing deposits in
financial institutions |
24,890 |
|
|
|
24,374 |
|
|
|
23,564 |
|
|
|
22,518 |
|
|
|
21,663 |
|
|
Total Cash and Cash Equivalents |
1,809,680 |
|
|
|
2,651,250 |
|
|
|
886,136 |
|
|
|
442,616 |
|
|
|
821,390 |
|
|
Securities available for
sale |
1,310,683 |
|
|
|
1,266,624 |
|
|
|
1,248,420 |
|
|
|
1,441,308 |
|
|
|
1,337,395 |
|
|
Securities held to
maturity |
17,131 |
|
|
|
41,595 |
|
|
|
42,431 |
|
|
|
43,688 |
|
|
|
44,494 |
|
|
Less: allowance for credit losses |
(90 |
) |
|
|
(121 |
) |
|
|
(133 |
) |
|
|
— |
|
|
|
— |
|
|
Securities held to maturity, net of allowance for credit
losses |
17,041 |
|
|
|
41,474 |
|
|
|
42,298 |
|
|
|
43,688 |
|
|
|
44,494 |
|
|
Other equity securities |
6,497 |
|
|
|
6,497 |
|
|
|
6,462 |
|
|
|
6,462 |
|
|
|
5,697 |
|
|
FHLB stock |
41,829 |
|
|
|
49,277 |
|
|
|
52,042 |
|
|
|
30,094 |
|
|
|
26,282 |
|
|
Total Securities |
1,376,050 |
|
|
|
1,363,872 |
|
|
|
1,349,222 |
|
|
|
1,521,552 |
|
|
|
1,413,868 |
|
|
Mortgage loans held for
sale |
669,020 |
|
|
|
610,369 |
|
|
|
453,143 |
|
|
|
419,233 |
|
|
|
456,719 |
|
|
Loans, net of unearned income
and deferred costs |
9,770,570 |
|
|
|
9,801,889 |
|
|
|
8,784,195 |
|
|
|
8,419,288 |
|
|
|
8,182,829 |
|
|
Less: allowance for credit losses |
(119,058 |
) |
|
|
(90,467 |
) |
|
|
(64,372 |
) |
|
|
(58,234 |
) |
|
|
(55,428 |
) |
|
Net Loans |
9,651,512 |
|
|
|
9,711,422 |
|
|
|
8,719,823 |
|
|
|
8,361,054 |
|
|
|
8,127,401 |
|
|
Premises and equipment,
net |
256,909 |
|
|
|
257,533 |
|
|
|
236,735 |
|
|
|
231,806 |
|
|
|
231,060 |
|
|
Goodwill |
446,725 |
|
|
|
446,725 |
|
|
|
446,725 |
|
|
|
446,816 |
|
|
|
446,423 |
|
|
Other intangible assets,
net |
45,781 |
|
|
|
48,632 |
|
|
|
51,448 |
|
|
|
54,399 |
|
|
|
57,404 |
|
|
BOLI |
244,103 |
|
|
|
242,493 |
|
|
|
240,924 |
|
|
|
243,062 |
|
|
|
241,652 |
|
|
Other assets |
295,637 |
|
|
|
247,962 |
|
|
|
239,670 |
|
|
|
227,125 |
|
|
|
225,374 |
|
|
TOTAL ASSETS |
$ |
14,795,417 |
|
|
|
$ |
15,580,258 |
|
|
|
$ |
12,623,826 |
|
|
|
$ |
11,947,663 |
|
|
|
$ |
12,021,291 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
4,464,178 |
|
|
|
$ |
4,226,208 |
|
|
|
$ |
3,060,515 |
|
|
|
$ |
2,951,225 |
|
|
|
$ |
3,030,505 |
|
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
4,642,482 |
|
|
|
4,223,391 |
|
|
|
3,573,926 |
|
|
|
3,586,364 |
|
|
|
3,534,252 |
|
|
Savings |
312,444 |
|
|
|
298,673 |
|
|
|
280,807 |
|
|
|
276,205 |
|
|
|
280,552 |
|
|
Certificates of deposit |
2,285,859 |
|
|
|
2,516,666 |
|
|
|
2,392,744 |
|
|
|
2,457,123 |
|
|
|
2,592,705 |
|
|
Total Deposits |
11,704,963 |
|
|
|
11,264,938 |
|
|
|
9,307,992 |
|
|
|
9,270,917 |
|
|
|
9,438,014 |
|
|
Advances from the FHLB |
731,202 |
|
|
|
906,365 |
|
|
|
971,527 |
|
|
|
471,687 |
|
|
|
381,846 |
|
|
Subordinated debt, net |
248,906 |
|
|
|
248,756 |
|
|
|
248,607 |
|
|
|
248,458 |
|
|
|
248,309 |
|
|
FRB PPP lending facility |
— |
|
|
|
1,111,429 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Repurchase agreements and
other borrowings |
58,061 |
|
|
|
60,913 |
|
|
|
171,762 |
|
|
|
52,391 |
|
|
|
42,971 |
|
|
Total Borrowings |
1,038,169 |
|
|
|
2,327,463 |
|
|
|
1,391,896 |
|
|
|
772,536 |
|
|
|
673,126 |
|
|
Other liabilities |
303,582 |
|
|
|
266,314 |
|
|
|
258,306 |
|
|
|
250,516 |
|
|
|
271,617 |
|
|
TOTAL LIABILITIES |
13,046,714 |
|
|
|
13,858,715 |
|
|
|
10,958,194 |
|
|
|
10,293,969 |
|
|
|
10,382,757 |
|
|
Preferred stock |
|
|
|
|
|
|
|
|
|
Authorized shares - 2,000,000 |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Common stock, $1.667 par
value |
121,115 |
|
|
|
121,101 |
|
|
|
121,057 |
|
|
|
121,107 |
|
|
|
121,080 |
|
|
Capital surplus |
1,045,170 |
|
|
|
1,043,774 |
|
|
|
1,041,870 |
|
|
|
1,041,160 |
|
|
|
1,039,156 |
|
|
Retained earnings |
520,888 |
|
|
|
499,502 |
|
|
|
477,972 |
|
|
|
467,186 |
|
|
|
445,186 |
|
|
Common stock issued to
deferred compensation trust, at cost |
(16,951 |
) |
|
|
(16,776 |
) |
|
|
(15,562 |
) |
|
|
(15,555 |
) |
|
|
(15,317 |
) |
|
Deferred compensation
trust |
16,951 |
|
|
|
16,776 |
|
|
|
15,562 |
|
|
|
15,555 |
|
|
|
15,317 |
|
|
Accumulated other
comprehensive income (loss) |
44,569 |
|
|
|
43,218 |
|
|
|
12,301 |
|
|
|
11,302 |
|
|
|
19,958 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
1,731,742 |
|
|
|
1,707,595 |
|
|
|
1,653,200 |
|
|
|
1,640,755 |
|
|
|
1,625,380 |
|
|
Noncontrolling interest |
16,961 |
|
|
|
13,948 |
|
|
|
12,432 |
|
|
|
12,939 |
|
|
|
13,154 |
|
|
TOTAL EQUITY |
1,748,703 |
|
|
|
1,721,543 |
|
|
|
1,665,632 |
|
|
|
1,653,694 |
|
|
|
1,638,534 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
14,795,417 |
|
|
|
$ |
15,580,258 |
|
|
|
$ |
12,623,826 |
|
|
|
$ |
11,947,663 |
|
|
|
$ |
12,021,291 |
|
|
|
TOWNEBANK |
Consolidated Statements of Income - Five Quarter Trend
(unaudited) |
(dollars in thousands, except share data) |
|
|
|
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
102,869 |
|
|
|
$ |
102,139 |
|
|
|
$ |
100,062 |
|
|
|
$ |
100,059 |
|
|
|
$ |
102,047 |
|
|
Investment securities |
7,440 |
|
|
|
8,163 |
|
|
|
9,949 |
|
|
|
9,936 |
|
|
|
9,889 |
|
|
Interest-bearing deposits in financial institutions and federal
funds sold |
632 |
|
|
|
433 |
|
|
|
1,102 |
|
|
|
2,067 |
|
|
|
3,745 |
|
|
Mortgage loans held for sale |
4,587 |
|
|
|
3,811 |
|
|
|
2,988 |
|
|
|
4,413 |
|
|
|
3,956 |
|
|
Total interest income |
115,528 |
|
|
|
114,546 |
|
|
|
114,101 |
|
|
|
116,475 |
|
|
|
119,637 |
|
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
Deposits |
12,966 |
|
|
|
15,072 |
|
|
|
19,062 |
|
|
|
21,744 |
|
|
|
23,552 |
|
|
Advances from the FHLB |
1,901 |
|
|
|
2,595 |
|
|
|
2,492 |
|
|
|
1,730 |
|
|
|
1,935 |
|
|
Subordinated debt |
2,962 |
|
|
|
2,962 |
|
|
|
2,962 |
|
|
|
2,962 |
|
|
|
2,962 |
|
|
Repurchase agreements and other borrowings |
940 |
|
|
|
643 |
|
|
|
89 |
|
|
|
80 |
|
|
|
85 |
|
|
Total interest expense |
18,769 |
|
|
|
21,272 |
|
|
|
24,605 |
|
|
|
26,516 |
|
|
|
28,534 |
|
|
Net interest
income |
96,759 |
|
|
|
93,274 |
|
|
|
89,496 |
|
|
|
89,959 |
|
|
|
91,103 |
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR CREDIT
LOSSES |
31,598 |
|
|
|
26,945 |
|
|
|
7,016 |
|
|
|
3,601 |
|
|
|
1,508 |
|
|
Net interest income after provision for credit
losses |
65,161 |
|
|
|
66,329 |
|
|
|
82,480 |
|
|
|
86,358 |
|
|
|
89,595 |
|
|
NONINTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
Residential mortgage banking income, net |
37,531 |
|
|
|
29,715 |
|
|
|
7,416 |
|
|
|
15,884 |
|
|
|
18,855 |
|
|
Insurance commissions and other title fees and income, net |
17,468 |
|
|
|
17,612 |
|
|
|
16,893 |
|
|
|
15,001 |
|
|
|
16,681 |
|
|
Real estate brokerage and property management income, net |
11,301 |
|
|
|
10,781 |
|
|
|
6,938 |
|
|
|
6,737 |
|
|
|
9,444 |
|
|
Service charges on deposit accounts |
1,986 |
|
|
|
1,888 |
|
|
|
2,440 |
|
|
|
2,245 |
|
|
|
2,253 |
|
|
Credit card merchant fees, net |
1,506 |
|
|
|
1,109 |
|
|
|
1,179 |
|
|
|
1,389 |
|
|
|
1,514 |
|
|
BOLI |
1,605 |
|
|
|
1,584 |
|
|
|
3,105 |
|
|
|
3,865 |
|
|
|
2,117 |
|
|
Other income |
22,278 |
|
|
|
3,763 |
|
|
|
5,227 |
|
|
|
4,591 |
|
|
|
3,981 |
|
|
Net gain/(loss) on investment securities |
1,701 |
|
|
|
2,930 |
|
|
|
5,002 |
|
|
|
— |
|
|
|
(69 |
) |
|
Total noninterest income |
95,376 |
|
|
|
69,382 |
|
|
|
48,200 |
|
|
|
49,712 |
|
|
|
54,776 |
|
|
NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
61,408 |
|
|
|
56,926 |
|
|
|
55,867 |
|
|
|
56,013 |
|
|
|
55,784 |
|
|
Occupancy expense |
8,396 |
|
|
|
7,227 |
|
|
|
7,502 |
|
|
|
7,516 |
|
|
|
7,953 |
|
|
Furniture and equipment |
3,247 |
|
|
|
3,564 |
|
|
|
3,640 |
|
|
|
3,598 |
|
|
|
3,805 |
|
|
Amortization - intangibles |
2,851 |
|
|
|
2,901 |
|
|
|
2,950 |
|
|
|
3,005 |
|
|
|
3,059 |
|
|
Software expense |
3,572 |
|
|
|
3,492 |
|
|
|
3,492 |
|
|
|
2,976 |
|
|
|
3,208 |
|
|
Data processing |
3,113 |
|
|
|
2,718 |
|
|
|
2,791 |
|
|
|
2,510 |
|
|
|
2,533 |
|
|
Professional fees |
2,637 |
|
|
|
2,972 |
|
|
|
3,067 |
|
|
|
2,990 |
|
|
|
3,566 |
|
|
Advertising and marketing |
1,870 |
|
|
|
1,986 |
|
|
|
3,584 |
|
|
|
2,839 |
|
|
|
3,429 |
|
|
Other expenses |
14,887 |
|
|
|
9,239 |
|
|
|
13,995 |
|
|
|
10,889 |
|
|
|
13,950 |
|
|
Total noninterest expense |
101,981 |
|
|
|
91,025 |
|
|
|
96,888 |
|
|
|
92,336 |
|
|
|
97,287 |
|
|
Income before income
tax expense and noncontrolling interest |
58,556 |
|
|
|
44,686 |
|
|
|
33,792 |
|
|
|
43,734 |
|
|
|
47,084 |
|
|
Provision for income tax
expense |
7,841 |
|
|
|
7,464 |
|
|
|
6,187 |
|
|
|
7,786 |
|
|
|
7,684 |
|
|
Net
income |
50,715 |
|
|
|
37,222 |
|
|
|
27,605 |
|
|
|
35,948 |
|
|
|
39,400 |
|
|
Net income attributable to
noncontrolling interest |
(16,251 |
) |
|
|
(2,617 |
) |
|
|
(1,221 |
) |
|
|
(873 |
) |
|
|
(1,741 |
) |
|
Net income
attributable to TowneBank |
$ |
34,464 |
|
|
|
$ |
34,605 |
|
|
|
$ |
26,384 |
|
|
|
$ |
35,075 |
|
|
|
$ |
37,659 |
|
|
Per common share
information |
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.48 |
|
|
|
$ |
0.48 |
|
|
|
$ |
0.37 |
|
|
|
$ |
0.49 |
|
|
|
$ |
0.52 |
|
|
Diluted earnings |
$ |
0.48 |
|
|
|
$ |
0.48 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.49 |
|
|
|
$ |
0.52 |
|
|
Basic weighted average shares outstanding |
72,307,961 |
|
|
|
72,280,555 |
|
|
|
72,206,228 |
|
|
|
72,122,476 |
|
|
|
72,091,221 |
|
|
Diluted weighted average shares outstanding |
72,344,284 |
|
|
|
72,317,988 |
|
|
|
72,299,721 |
|
|
|
72,302,414 |
|
|
|
72,222,934 |
|
|
Cash dividends declared |
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Banking Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 over 2019 |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
92,869 |
|
|
|
$ |
89,490 |
|
|
|
$ |
89,665 |
|
|
$ |
269,941 |
|
|
$ |
264,332 |
|
|
|
$ |
5,609 |
|
|
|
2.12 |
% |
Service charges on deposit accounts |
1,986 |
|
|
|
2,253 |
|
|
|
1,888 |
|
|
6,315 |
|
|
8,299 |
|
|
|
(1,984 |
) |
|
|
(23.91 |
)% |
Credit card merchant fees |
1,506 |
|
|
|
1,514 |
|
|
|
1,109 |
|
|
3,793 |
|
|
3,357 |
|
|
|
436 |
|
|
|
12.99 |
% |
Other income |
4,876 |
|
|
|
5,152 |
|
|
|
3,888 |
|
|
15,826 |
|
|
14,350 |
|
|
|
1,476 |
|
|
|
10.29 |
% |
Subtotal |
8,368 |
|
|
|
8,919 |
|
|
|
6,885 |
|
|
25,934 |
|
|
26,006 |
|
|
|
(72 |
) |
|
|
(0.28 |
)% |
Net gain/(loss) on investment securities |
1,701 |
|
|
|
(69 |
) |
|
|
2,930 |
|
|
9,632 |
|
|
(845 |
) |
|
|
10,477 |
|
|
|
1,239.88 |
% |
Total noninterest income |
10,069 |
|
|
|
8,850 |
|
|
|
9,815 |
|
|
35,566 |
|
|
25,161 |
|
|
|
10,405 |
|
|
|
41.35 |
% |
Total revenue |
102,938 |
|
|
|
98,340 |
|
|
|
99,480 |
|
|
305,507 |
|
|
289,493 |
|
|
|
16,014 |
|
|
|
5.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
31,070 |
|
|
|
1,508 |
|
|
|
26,059 |
|
|
64,170 |
|
|
5,770 |
|
|
|
58,400 |
|
|
|
1,012.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
36,535 |
|
|
|
33,526 |
|
|
|
35,209 |
|
|
104,970 |
|
|
96,966 |
|
|
|
8,004 |
|
|
|
8.25 |
% |
Occupancy expense |
5,829 |
|
|
|
5,209 |
|
|
|
4,812 |
|
|
15,557 |
|
|
15,460 |
|
|
|
97 |
|
|
|
0.63 |
% |
Furniture and equipment |
2,424 |
|
|
|
2,779 |
|
|
|
2,715 |
|
|
7,800 |
|
|
7,662 |
|
|
|
138 |
|
|
|
1.80 |
% |
Amortization of intangibles |
1,063 |
|
|
|
1,265 |
|
|
|
1,114 |
|
|
3,341 |
|
|
3,946 |
|
|
|
(605 |
) |
|
|
(15.33 |
)% |
Other expenses |
15,793 |
|
|
|
17,098 |
|
|
|
10,718 |
|
|
45,214 |
|
|
52,218 |
|
|
|
(7,004 |
) |
|
|
(13.41 |
)% |
Total expenses |
61,644 |
|
|
|
59,877 |
|
|
|
54,568 |
|
|
176,882 |
|
|
176,252 |
|
|
|
630 |
|
|
|
0.36 |
% |
Income before income tax,
corporate allocation and noncontrolling interest |
10,224 |
|
|
|
36,955 |
|
|
|
18,853 |
|
|
64,455 |
|
|
107,471 |
|
|
|
(43,016 |
) |
|
|
(40.03 |
)% |
Corporate allocation |
595 |
|
|
|
384 |
|
|
|
627 |
|
|
1,891 |
|
|
1,383 |
|
|
|
508 |
|
|
|
36.73 |
% |
Income before income tax
provision and noncontrolling interest |
10,819 |
|
|
|
37,339 |
|
|
|
19,480 |
|
|
66,346 |
|
|
108,854 |
|
|
|
(42,508 |
) |
|
|
(39.05 |
)% |
Provision for income tax
expense |
474 |
|
|
|
5,495 |
|
|
|
2,167 |
|
|
9,304 |
|
|
19,337 |
|
|
|
(10,033 |
) |
|
|
(51.88 |
)% |
Net income |
10,345 |
|
|
|
31,844 |
|
|
|
17,313 |
|
|
57,042 |
|
|
89,517 |
|
|
|
(32,475 |
) |
|
|
(36.28 |
)% |
Noncontrolling interest |
(2 |
) |
|
|
— |
|
|
|
5 |
|
|
2 |
|
|
4 |
|
|
|
(2 |
) |
|
|
(50.00 |
)% |
Net income attributable to
TowneBank |
$ |
10,343 |
|
|
|
$ |
31,844 |
|
|
|
$ |
17,318 |
|
|
$ |
57,044 |
|
|
$ |
89,521 |
|
|
|
$ |
(32,477 |
) |
|
|
(36.28 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
60.89 |
% |
|
|
60.85 |
% |
|
|
56.52 |
% |
|
59.78 |
% |
|
60.71 |
% |
|
|
(0.93 |
)% |
|
|
(1.53 |
)% |
|
TOWNEBANK |
Realty Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 over 2019 |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage brokerage income, net |
$ |
38,074 |
|
|
|
$ |
19,171 |
|
|
|
$ |
30,468 |
|
|
|
$ |
76,549 |
|
|
|
$ |
51,826 |
|
|
|
$ |
24,723 |
|
|
|
47.70 |
% |
Real estate brokerage income, net |
3,688 |
|
|
|
2,882 |
|
|
|
2,659 |
|
|
|
8,212 |
|
|
|
7,315 |
|
|
|
897 |
|
|
|
12.26 |
% |
Title insurance and settlement fees |
654 |
|
|
|
617 |
|
|
|
639 |
|
|
|
1,728 |
|
|
|
1,581 |
|
|
|
147 |
|
|
|
9.30 |
% |
Property management fees, net |
7,613 |
|
|
|
6,562 |
|
|
|
8,122 |
|
|
|
20,808 |
|
|
|
20,240 |
|
|
|
568 |
|
|
|
2.81 |
% |
Income from unconsolidated subsidiary |
451 |
|
|
|
185 |
|
|
|
301 |
|
|
|
938 |
|
|
|
441 |
|
|
|
497 |
|
|
|
112.70 |
% |
Net interest and other income |
4,101 |
|
|
|
1,885 |
|
|
|
3,765 |
|
|
|
10,262 |
|
|
|
4,937 |
|
|
|
5,325 |
|
|
|
107.86 |
% |
Total revenue |
54,581 |
|
|
|
31,302 |
|
|
|
45,954 |
|
|
|
118,497 |
|
|
|
86,340 |
|
|
|
32,157 |
|
|
|
37.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
528 |
|
|
|
— |
|
|
|
886 |
|
|
|
1,389 |
|
|
|
— |
|
|
|
1,389 |
|
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
15,744 |
|
|
|
13,474 |
|
|
|
13,059 |
|
|
|
42,095 |
|
|
|
39,678 |
|
|
|
2,417 |
|
|
|
6.09 |
% |
Occupancy expense |
1,906 |
|
|
|
2,055 |
|
|
|
1,763 |
|
|
|
5,595 |
|
|
|
6,428 |
|
|
|
(833 |
) |
|
|
(12.96 |
)% |
Furniture and equipment |
620 |
|
|
|
754 |
|
|
|
626 |
|
|
|
2,007 |
|
|
|
2,326 |
|
|
|
(319 |
) |
|
|
(13.71 |
)% |
Amortization of intangible assets |
658 |
|
|
|
666 |
|
|
|
658 |
|
|
|
1,973 |
|
|
|
2,086 |
|
|
|
(113 |
) |
|
|
(5.42 |
)% |
Other expenses |
9,226 |
|
|
|
7,478 |
|
|
|
8,270 |
|
|
|
24,366 |
|
|
|
20,953 |
|
|
|
3,413 |
|
|
|
16.29 |
% |
Total expenses |
28,154 |
|
|
|
24,427 |
|
|
|
24,376 |
|
|
|
76,036 |
|
|
|
71,471 |
|
|
|
4,565 |
|
|
|
6.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
tax, corporate allocation and noncontrolling interest |
25,899 |
|
|
|
6,875 |
|
|
|
20,692 |
|
|
|
41,072 |
|
|
|
14,869 |
|
|
|
26,203 |
|
|
|
176.23 |
% |
Corporate allocation |
(356 |
) |
|
|
(208 |
) |
|
|
(370 |
) |
|
|
(1,119 |
) |
|
|
(800 |
) |
|
|
(319 |
) |
|
|
39.88 |
% |
(Loss) income before income
tax provision and noncontrolling interest |
25,543 |
|
|
|
6,667 |
|
|
|
20,322 |
|
|
|
39,953 |
|
|
|
14,069 |
|
|
|
25,884 |
|
|
|
183.98 |
% |
Provision for income tax
(benefit) expense |
4,780 |
|
|
|
1,454 |
|
|
|
4,127 |
|
|
|
7,614 |
|
|
|
3,292 |
|
|
|
4,322 |
|
|
|
131.29 |
% |
Net (loss) income |
20,763 |
|
|
|
5,213 |
|
|
|
16,195 |
|
|
|
32,339 |
|
|
|
10,777 |
|
|
|
21,562 |
|
|
|
200.07 |
% |
Noncontrolling interest |
(4,790 |
) |
|
|
(1,496 |
) |
|
|
(2,415 |
) |
|
|
(7,996 |
) |
|
|
(2,997 |
) |
|
|
(4,999 |
) |
|
|
166.80 |
% |
Net (loss) income attributable
to TowneBank |
$ |
15,973 |
|
|
|
$ |
3,717 |
|
|
|
$ |
13,780 |
|
|
|
$ |
24,343 |
|
|
|
$ |
7,780 |
|
|
|
$ |
16,563 |
|
|
|
212.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
51.58 |
% |
|
|
78.04 |
% |
|
|
53.04 |
% |
|
|
64.17 |
% |
|
|
82.78 |
% |
|
|
(18.61 |
)% |
|
|
(22.48 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Insurance Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 over 2019 |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
|
Amount |
|
Percent |
Commission and fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and casualty |
$ |
14,072 |
|
|
|
$ |
13,481 |
|
|
|
$ |
13,926 |
|
|
|
$ |
40,784 |
|
|
|
$ |
38,421 |
|
|
|
$ |
2,363 |
|
|
|
6.15 |
% |
Employee benefits |
3,825 |
|
|
|
3,629 |
|
|
|
3,791 |
|
|
|
11,534 |
|
|
|
10,968 |
|
|
|
566 |
|
|
|
5.16 |
% |
Travel insurance |
1,399 |
|
|
|
834 |
|
|
|
861 |
|
|
|
3,526 |
|
|
|
3,292 |
|
|
|
234 |
|
|
|
7.11 |
% |
Specialized benefit services |
165 |
|
|
|
166 |
|
|
|
157 |
|
|
|
489 |
|
|
|
499 |
|
|
|
(10 |
) |
|
|
(2.00 |
)% |
Total commissions and
fees |
19,461 |
|
|
|
18,110 |
|
|
|
18,735 |
|
|
|
56,333 |
|
|
|
53,180 |
|
|
|
3,153 |
|
|
|
5.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingency and bonus
revenue |
1,112 |
|
|
|
1,431 |
|
|
|
2,009 |
|
|
|
5,144 |
|
|
|
4,910 |
|
|
|
234 |
|
|
|
4.77 |
% |
Other income * |
17,697 |
|
|
|
74 |
|
|
|
127 |
|
|
|
17,906 |
|
|
|
227 |
|
|
|
17,679 |
|
|
|
7,788.11 |
% |
Total revenue |
38,270 |
|
|
|
19,615 |
|
|
|
20,871 |
|
|
|
79,383 |
|
|
|
58,317 |
|
|
|
21,066 |
|
|
|
36.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee commission
expense |
3,654 |
|
|
|
3,378 |
|
|
|
3,649 |
|
|
|
10,900 |
|
|
|
9,878 |
|
|
|
1,022 |
|
|
|
10.35 |
% |
Revenue, net of commission
expense |
34,616 |
|
|
|
16,237 |
|
|
|
17,222 |
|
|
|
68,483 |
|
|
|
48,439 |
|
|
|
20,044 |
|
|
|
41.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
9,129 |
|
|
|
8,784 |
|
|
|
8,658 |
|
|
|
27,136 |
|
|
|
26,263 |
|
|
|
873 |
|
|
|
3.32 |
% |
Occupancy expense |
661 |
|
|
|
689 |
|
|
|
652 |
|
|
|
1,972 |
|
|
|
1,978 |
|
|
|
(6 |
) |
|
|
(0.30 |
)% |
Furniture and equipment |
203 |
|
|
|
272 |
|
|
|
223 |
|
|
|
644 |
|
|
|
765 |
|
|
|
(121 |
) |
|
|
(15.82 |
)% |
Amortization of intangible
assets |
1,130 |
|
|
|
1,128 |
|
|
|
1,129 |
|
|
|
3,388 |
|
|
|
3,332 |
|
|
|
56 |
|
|
|
1.68 |
% |
Other expenses |
1,060 |
|
|
|
2,110 |
|
|
|
1,419 |
|
|
|
3,836 |
|
|
|
5,906 |
|
|
|
(2,070 |
) |
|
|
(35.05 |
)% |
Total operating expenses |
12,183 |
|
|
|
12,983 |
|
|
|
12,081 |
|
|
|
36,976 |
|
|
|
38,244 |
|
|
|
(1,268 |
) |
|
|
(3.32 |
)% |
Income before income tax,
corporate allocation and noncontrolling interest |
22,433 |
|
|
|
3,254 |
|
|
|
5,141 |
|
|
|
31,507 |
|
|
|
10,195 |
|
|
|
21,312 |
|
|
|
209.04 |
% |
Corporate allocation |
(239 |
) |
|
|
(176 |
) |
|
|
(257 |
) |
|
|
(772 |
) |
|
|
(583 |
) |
|
|
(189 |
) |
|
|
32.42 |
% |
Income before income tax
provision and noncontrolling interest |
22,194 |
|
|
|
3,078 |
|
|
|
4,884 |
|
|
|
30,735 |
|
|
|
9,612 |
|
|
|
21,123 |
|
|
|
219.76 |
% |
Provision for income tax
expense |
2,587 |
|
|
|
735 |
|
|
|
1,170 |
|
|
|
4,574 |
|
|
|
2,181 |
|
|
|
2,393 |
|
|
|
109.72 |
% |
Net income |
19,607 |
|
|
|
2,343 |
|
|
|
3,714 |
|
|
|
26,161 |
|
|
|
7,431 |
|
|
|
18,730 |
|
|
|
252.05 |
% |
Noncontrolling interest |
(11,459 |
) |
|
|
(245 |
) |
|
|
(207 |
) |
|
|
(12,095 |
) |
|
|
(1,025 |
) |
|
|
(11,070 |
) |
|
|
1,080.00 |
% |
Net income attributable to
TowneBank |
$ |
8,148 |
|
|
|
$ |
2,098 |
|
|
|
$ |
3,507 |
|
|
|
$ |
14,066 |
|
|
|
$ |
6,406 |
|
|
|
$ |
7,660 |
|
|
|
119.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
2,587 |
|
|
|
735 |
|
|
|
1,170 |
|
|
|
4,574 |
|
|
|
2,181 |
|
|
|
2,393 |
|
|
|
109.72 |
% |
Depreciation, amortization and
interest expense |
1,285 |
|
|
|
1,325 |
|
|
|
1,291 |
|
|
|
3,875 |
|
|
|
3,943 |
|
|
|
(68 |
) |
|
|
(1.72 |
)% |
EBITDA (non-GAAP) |
$ |
12,020 |
|
|
|
$ |
4,158 |
|
|
|
$ |
5,968 |
|
|
|
$ |
22,515 |
|
|
|
$ |
12,530 |
|
|
|
$ |
9,985 |
|
|
|
79.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
35.19 |
% |
|
|
79.96 |
% |
|
|
70.15 |
% |
|
|
53.99 |
% |
|
|
78.95 |
% |
|
|
$ |
(0.25 |
) |
|
|
(31.67 |
)% |
*Included in other income is
the gross gain on the sale of Red Sky |
$ |
17,626 |
|
|
|
— |
% |
|
|
n/m |
|
|
|
$ |
17,626 |
|
|
|
— |
% |
|
|
|
n/m |
|
|
|
|
Efficiency ratio excluding
gain |
71.71 |
% |
|
|
79.96 |
% |
|
|
70.15 |
% |
|
|
72.71 |
% |
|
|
78.95 |
% |
|
|
$ |
(0.06 |
) |
|
|
(7.60 |
)% |
|
TOWNEBANK |
Reconcilement of Non-GAAP Financial Measures |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
0.89 |
% |
|
1.26 |
% |
|
0.97 |
% |
|
0.91 |
% |
|
1.17 |
% |
Impact of excluding average
goodwill and other intangibles and amortization |
0.08 |
% |
|
0.14 |
% |
|
0.10 |
% |
|
0.10 |
% |
|
0.15 |
% |
Return on average tangible
assets (non-GAAP) |
0.97 |
% |
|
1.40 |
% |
|
1.07 |
% |
|
1.01 |
% |
|
1.32 |
% |
|
|
|
|
|
|
|
|
|
|
Return on average equity
(GAAP) |
7.85 |
% |
|
9.22 |
% |
|
8.18 |
% |
|
7.48 |
% |
|
8.54 |
% |
Impact of excluding average
goodwill and other intangibles and amortization |
3.81 |
% |
|
4.98 |
% |
|
4.14 |
% |
|
3.84 |
% |
|
5.03 |
% |
Return on average tangible
equity (non-GAAP) |
11.66 |
% |
|
14.20 |
% |
|
12.32 |
% |
|
11.32 |
% |
|
13.57 |
% |
|
|
|
|
|
|
|
|
|
|
Return on average common
equity (GAAP) |
7.91 |
% |
|
9.29 |
% |
|
8.24 |
% |
|
7.53 |
% |
|
8.60 |
% |
Impact of excluding average
goodwill and other intangibles and amortization |
3.88 |
% |
|
5.07 |
% |
|
4.20 |
% |
|
3.91 |
% |
|
5.13 |
% |
Return on average tangible
common equity (non-GAAP) |
11.79 |
% |
|
14.36 |
% |
|
12.44 |
% |
|
11.44 |
% |
|
13.73 |
% |
|
|
|
|
|
|
|
|
|
|
Book value (GAAP) |
$ |
23.83 |
|
|
|
$ |
22.38 |
|
|
|
$ |
23.50 |
|
|
|
$ |
23.83 |
|
|
|
$ |
21.95 |
|
|
Impact of excluding average
goodwill and other intangibles and amortization |
(6.77 |
) |
|
|
(6.94 |
) |
|
|
(6.82 |
) |
|
|
(6.77 |
) |
|
|
(6.90 |
) |
|
Tangible book value
(non-GAAP) |
$ |
17.06 |
|
|
|
$ |
15.44 |
|
|
|
$ |
16.68 |
|
|
|
$ |
17.06 |
|
|
|
$ |
15.05 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
53.08 |
% |
|
55.96 |
% |
|
66.69 |
% |
|
58.86 |
% |
|
67.40 |
% |
Impact of excluding gain/loss
on investments |
(0.47 |
)% |
|
(1.03 |
)% |
|
0.03 |
% |
|
(1.18 |
)% |
|
0.13 |
% |
Efficiency ratio
(non-GAAP) |
53.55 |
% |
|
56.99 |
% |
|
66.66 |
% |
|
60.04 |
% |
|
67.27 |
% |
|
|
|
|
|
|
|
|
|
|
Average assets (GAAP) |
$ |
15,487,152 |
|
|
|
$ |
11,845,282 |
|
|
|
$ |
14,409,468 |
|
|
|
$ |
13,987,474 |
|
|
|
$ |
11,526,487 |
|
|
Less: average goodwill |
446,725 |
|
|
|
442,919 |
|
|
|
446,725 |
|
|
|
446,762 |
|
|
|
442,890 |
|
|
Less: average intangible
assets |
47,513 |
|
|
|
57,327 |
|
|
|
50,352 |
|
|
|
50,373 |
|
|
|
60,333 |
|
|
Average tangible assets
(non-GAAP) |
$ |
14,992,914 |
|
|
|
$ |
11,345,036 |
|
|
|
$ |
13,912,391 |
|
|
|
$ |
13,490,339 |
|
|
|
$ |
11,023,264 |
|
|
|
|
|
|
|
|
|
|
|
|
Average equity (GAAP) |
$ |
1,747,033 |
|
|
|
$ |
1,620,070 |
|
|
|
$ |
1,701,777 |
|
|
|
$ |
1,704,993 |
|
|
|
$ |
1,580,213 |
|
|
Less: average goodwill |
446,725 |
|
|
|
442,919 |
|
|
|
446,725 |
|
|
|
446,762 |
|
|
|
442,890 |
|
|
Less: average intangible
assets |
47,513 |
|
|
|
57,327 |
|
|
|
50,352 |
|
|
|
50,373 |
|
|
|
60,333 |
|
|
Average tangible equity
(non-GAAP) |
$ |
1,252,795 |
|
|
|
$ |
1,119,824 |
|
|
|
$ |
1,204,700 |
|
|
|
$ |
1,207,858 |
|
|
|
$ |
1,076,990 |
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity
(GAAP) |
$ |
1,732,881 |
|
|
|
$ |
1,607,853 |
|
|
|
$ |
1,689,603 |
|
|
|
$ |
1,692,202 |
|
|
|
1,568,336 |
|
|
Less: average goodwill |
446,725 |
|
|
|
442,919 |
|
|
|
446,725 |
|
|
|
446,762 |
|
|
|
442,890 |
|
|
Less: average intangible
assets |
47,513 |
|
|
|
57,327 |
|
|
|
50,352 |
|
|
|
50,373 |
|
|
|
60,333 |
|
|
Average tangible common equity
(non-GAAP) |
$ |
1,238,643 |
|
|
|
$ |
1,107,607 |
|
|
|
$ |
1,192,526 |
|
|
|
$ |
1,195,067 |
|
|
|
$ |
1,065,113 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
34,464 |
|
|
|
$ |
37,659 |
|
|
|
34,605 |
|
|
|
95,453 |
|
|
|
103,707 |
|
|
Amortization of Intangibles,
net of tax |
2,252 |
|
|
|
2,417 |
|
|
|
2,292 |
|
|
|
6,875 |
|
|
|
7,398 |
|
|
Tangible Net Income
(non-GAAP) |
$ |
36,716 |
|
|
|
$ |
40,076 |
|
|
|
$ |
36,897 |
|
|
|
$ |
102,328 |
|
|
|
$ |
111,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
34,464 |
|
|
|
$ |
37,659 |
|
|
|
$ |
34,605 |
|
|
|
$ |
95,453 |
|
|
|
$ |
103,707 |
|
|
Provision for credit
losses |
31,598 |
|
|
|
1,508 |
|
|
|
26,945 |
|
|
|
65,559 |
|
|
|
5,770 |
|
|
Provision for income tax |
7,841 |
|
|
|
7,684 |
|
|
|
7,464 |
|
|
|
21,492 |
|
|
|
24,810 |
|
|
Pre-provision, pre-tax net
revenues (non-GAAP) |
$ |
73,903 |
|
|
|
$ |
46,851 |
|
|
|
$ |
69,014 |
|
|
|
$ |
182,504 |
|
|
|
$ |
134,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (GAAP) |
$ |
192,135 |
|
|
|
$ |
162,656 |
|
|
|
$ |
145,879 |
|
|
|
$ |
492,487 |
|
|
|
$ |
424,272 |
|
|
Net (gain)/loss on investment
securities |
(1,701 |
) |
|
|
(2,930 |
) |
|
|
69 |
|
|
|
(9,632 |
) |
|
|
845 |
|
|
Total Revenue for Efficiency
calculation (non-GAAP) |
$ |
190,434 |
|
|
|
$ |
159,726 |
|
|
|
$ |
145,948 |
|
|
|
$ |
482,855 |
|
|
|
$ |
425,117 |
|
|
TowneBank (NASDAQ:TOWN)
Historical Stock Chart
From Aug 2024 to Sep 2024
TowneBank (NASDAQ:TOWN)
Historical Stock Chart
From Sep 2023 to Sep 2024