SUFFOLK, Va., July 29, 2021 (GLOBE NEWSWIRE) --
TowneBank (the "Company") (NASDAQ: TOWN) today reported earnings
for the quarter ended June 30, 2021 of $55.80 million, or
$0.77 per diluted share, compared to $34.61 million, or $0.48
per diluted share, for the quarter ended June 30,
2020.
"Towne delivered another strong financial performance for the
quarter with solid contributions across each of our business
segments. Continued improvements in economic conditions led
to an increase of nearly $50 million, or 16%, in total
revenues. In fact, CNBC recently recognized Virginia and
North Carolina as the #1 and #2 top states, respectively, in our
country for doing business. As our economy continues to
normalize, our Company is well-positioned to capitalize on the
opportunities to drive future growth," said G. Robert Aston, Jr.,
Executive Chairman.
Highlights for Second Quarter 2021
Compared to Second Quarter 2020:
- Total revenues were $167.32 million, an increase of
$4.67 million, or 2.87%.
- Pre-provision, pre-tax, net revenues (non-GAAP) were
$59.73 million, a decrease of $9.29 million, or
13.46%.
- Loans held for investment were $9.42 billion, a decrease
of $0.38 billion, or 3.86%, from June 30, 2020, and
$0.31 billion, or 3.19%, from March 31, 2021.
Excluding the decline in loans from the Paycheck Protection
Program ("PPP"), loans held for investment increased $186.81
million, or 2.14%, compared to June 30, 2020, and
$62.46 million, or 2.84%, on an annualized basis from the
linked quarter. Total loans at June 30, 2021,
June 30, 2020, and March 31, 2021 included
$0.52 billion, $1.09 billion, and $0.90 billion,
respectively, of PPP loans.
- Total deposits were $12.96 billion, an increase of
$1.70 billion, or 15.09%, compared to prior year and
$0.82 billion, or 27.26% on an annualized basis, from
March 31, 2021.
- Noninterest bearing deposits increased by 24.06%, to
$5.24 billion, representing 40.44% of total deposits.
Compared to the linked quarter, noninterest bearing deposits
increased 8.31%, or 33.34%, on an annualized basis.
- Annualized return on common shareholders' equity was 12.31% and
annualized return on average tangible common shareholders' equity
was 17.57% (non-GAAP).
- Net interest margin for the quarter was 2.92% and taxable
equivalent net interest margin (non-GAAP) was 2.94%.
- Nonperforming assets were $15.22 million, or 0.10% of
total assets, compared to $29.25 million, or 0.19%, at
June 30, 2020, primarily due to the sale of several OREO
properties.
- Effective tax rate of 20.03% in the quarter compared to 17.74%
in second quarter 2020.
"We were pleased to deliver more than $62 million in core loan
growth, excluding PPP, during the quarter. Strong credit
performance and continued reductions in loan deferrals coupled with
an improving economic forecast led to a modest release in loan loss
reserves. Looking ahead, as liquidity continues to build we
would expect continued pressure on our net interest margins,
highlighting the importance of our fee-based business lines and
diversified business model," stated J. Morgan Davis, President and
Chief Executive Officer.
Quarterly Net Interest Income
Compared to Second Quarter 2020:
- Net interest income was $101.14 million compared to
$93.27 million at June 30, 2020.
- Tax-equivalent net interest margin (non-GAAP) was 2.94%,
including purchase accounting accretion of 5 basis points
and PPP interest and fees of 10 basis points, compared to
2.87%, including purchase accounting accretion of
8 basis points and a 16 basis point decline in interest
and fees related to PPP, for second quarter 2020.
- On an average basis, loans held for investment, with a yield of
4.24%, represented 69.02% of earning assets at June 30, 2021
compared to a yield of 4.29% and 73.10% of earning assets in the
second quarter of 2020. Excluding PPP loans, loan yields were
4.15% in second quarter 2021 compared to 4.42% in second quarter
2020.
- Interest and fee income on PPP loans was $10.02 million in
second quarter 2021, compared to $11.63 million in the linked
quarter, and $5.81 million in second quarter 2020.
- Total cost of deposits decreased to 0.23% from 0.58% at
June 30, 2020.
- Average interest-earning assets totaled $13.92 billion at
June 30, 2021 compared to $13.16 billion at June 30,
2020, an increase of 5.74%.
- Average interest-bearing liabilities totaled
$8.07 billion, a decrease of $0.57 billion from prior
year.
- Interest expense on the Federal Reserve Bank ("FRB") PPP
lending facility was $0.12 million in second quarter 2021,
compared to $0.16 million in the linked quarter, and
$0.54 million in second quarter 2020. The Company repaid
the entire balance of the facility during second quarter 2021.
Quarterly Provision for Credit
Losses:
- The quarterly provision for credit losses for on-balance-sheet
loans was a benefit of $8.09 million compared to a provision
expense of $25.99 million one year ago and a benefit of
$3.41 million in the linked quarter. The second quarter
2021 included a release in the allowance for credit losses of
$7.95 million that was driven by a combination of net
recoveries, reduction in loans deferred under the CARES Act, and
improvements in the economic forecast, offset by modest core loan
growth.
- Net loan recoveries were $0.14 million compared to net
recoveries of $0.10 million one year prior and net charge-offs
of $0.67 million in the linked quarter. The ratio of net
loan charge-offs to average loans on an annualized basis was
(0.01)% in second quarter 2021, 0.00% in 2020, and 0.03% in the
linked quarter.
- The provision for credit losses on off-balance-sheet
commitments was a benefit of $1.89 million compared to a
provision expense of $1.08 million in the second quarter of
2020, and a benefit of $0.48 million in the linked
quarter.
- The allowance for credit losses on loans represented 1.15% of
total loans compared to 1.19% at March 31, 2021 and 0.92% at
June 30, 2020. Excluding PPP loans, which are fully
government guaranteed, the allowance for credit losses (non-GAAP)
was 1.22%, compared to 1.31% at March 31, 2021 and 1.04% at
June 30, 2020. The allowance for credit losses on loans
was 9.67 times nonperforming loans compared to 9.09 times at
March 31, 2021 and 5.34 times at June 30, 2020.
- 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.
Quarterly Noninterest Income Compared
to Second Quarter 2020:
- Total noninterest income was $66.18 million compared to
$69.38 million in 2020, a decrease of $3.21 million, or
4.62%. Residential mortgage banking income decreased
$4.19 million, investment income increased $0.88 million,
insurance commissions and other title fees increased
$0.72 million, and real estate brokerage and property
management income increased $0.20 million. Also included
in noninterest income are net gains on investment securities of
$0.25 million as compared to net gains of $2.93 million
in the prior year.
- Residential mortgage banking recorded income of
$25.52 million compared to $29.72 million in second
quarter 2020. Loan volume in the current quarter was
$1.45 billion, with purchase activity comprising 76.95% of
that volume, compared to volume in second quarter 2020 of
$1.47 billion, with purchase activity comprising 51.26%.
Offsetting this 1.36% decline in volume between quarters, margins
improved 47 basis points. The primary driver of the decline
in income between quarters was the income statement impact of a net
loss on derivative instruments of $7.88 million, including a
loss on interest rate-locks of $4.76 million, compared to a
net gain on derivative instruments of $6.43 million, including
a gain on interest rate-locks of $3.51 million in second
quarter 2020.
- In the quarterly comparison, margins on residential mortgages
declined 37 basis points from the linked quarter after peaking in
December 2020. Management expects margin compression to
continue through the end of the year.
- Total Insurance segment revenue increased $1.03 million,
or 4.93% to $21.90 million in second quarter 2021 compared to
2020. The Company acquired a property and casualty insurance
agency in December 2020, which brought in $0.53 million in
additional revenue in second quarter 2021. The new agency
revenues, combined with organic growth, outpaced the impact of the
reduction in revenues due to the sale of its travel insurance joint
venture in third quarter 2020, which contributed revenue of
$0.86 million in second quarter 2020.
- Property management fee revenue decreased 12.69%, or
$1.03 million, to $7.09 million compared to second
quarter 2020. The earnings streams between years has been
impacted by the emergence of the COVID-19 pandemic, which put
travel at a standstill in first quarter 2020 and resulted in
heavier reservation activities in second quarter 2020. Due to
record first quarter 2021 reservations, occupancy levels are
currently at near-maximum and year-to-date reservation income is
$9.38 million, or 71.08% ahead of 2020.
- The Company acquired Venture Resorts, the largest cabin rental
company in the Smoky Mountains of Tennessee, in July 2021.
Based on the timing of this acquisition, management does not expect
the impact to earnings for the remainder of 2021 to be
material.
Quarterly Noninterest Expense
Compared to Second Quarter 2020:
- Total noninterest expense was $105.39 million compared to
$91.03 million in 2020, an increase of $14.37 million, or
15.79%. The higher level of expenses were attributable to
increases in salary and benefits expense of $4.44 million, and
production or performance related items such as advertising and
marketing expense of $1.27 million, software expense of
$1.0 million, charitable contributions of $3.43 million,
and data processing expense of $0.70 million.
- The quarterly increase in salaries and benefits was primarily
driven by across-the-board cost of living increases in the second
quarter of 2021.
- Noninterest expenses across most major categories have
increased compared to 2020, due to the pandemic impact in the prior
year, and have begun to normalize in 2021.
- Higher credit card fees on vacation property reservation
activities drove the increase in data processing expense, while
increased costs associated with our core banking platform resulted
in higher software expenses.
Consolidated Balance Sheet
Highlights:
- Total assets were $15.80 billion for the quarter ended
June 30, 2021, an increase of $0.72 billion, or 4.80%,
compared to $15.08 billion at March 31, 2021. Total
assets increased $0.22 billion, or 1.44%, from
$15.58 billion at June 30, 2020. The year-over-year
increase was driven primarily by higher liquidity levels and loans
held for investment tied to PPP lending activities.
- Loans held for investment decreased $0.38 billion, or
3.86%, compared to prior year and $0.31 billion, or 3.19%,
compared the linked quarter. Excluding PPP loans of
$0.52 billion in second quarter 2021, $1.09 billion in
second quarter 2020, and $0.90 billion in the linked quarter,
loans held for investment increased $186.81 million, or 2.14%,
compared to prior year, and $62.46 million, or 0.71%, compared
to March 31, 2021, or 2.84% on an annualized basis.
- Average loans held for investment, excluding PPP loans, were
$8.85 billion in the second quarter of 2021, an increase of
$19.19 million, or 0.22% compared to prior year. In the
linked quarter comparison, average loans held for investment,
excluding PPP loans, increased 0.79%, or $68.96 million, 3.15%
on an annualized basis.
- Unamortized fee income related to PPP loans was
$14.33 million at June 30, 2021.
- Mortgage loans held for sale decreased $55.92 million, or
9.16%, compared to the prior year and $28.46 million, or
4.88%, compared to the linked quarter.
- Total deposits increased $1.70 billion, or 15.09%,
compared to the prior year and $0.82 billion, or 6.80%,
compared to the linked quarter.
- Total borrowings decreased $1.74 billion, or 74.65%, from
prior year and $0.17 billion, or 22.02%, compared to the
linked quarter.
Investment
Securities:
- Total investment securities were $1.49 billion compared to
$1.46 billion at March 31, 2021 and $1.36 billion at
June 30, 2020. The weighted average duration of the
portfolio at June 30, 2021 was 4.3 years. The carrying
value of the AFS debt securities portfolio included
$42.18 million, $59.89 million, and $28.12 million
in net unrealized gains at June 30, 2021, June 30, 2020,
and March 31, 2021, respectively.
Loans and Asset
Quality:
- Total loans held for investment were $9.42 billion at
June 30, 2021 compared to $9.73 billion at March 31,
2021 and $9.80 billion at June 30, 2020.
- Nonperforming assets were $15.22 million, or 0.10% of
total assets, compared to $29.25 million, or 0.19%, at
June 30, 2020.
- Nonperforming loans were 0.12% of period end loans compared to
0.17% at June 30, 2020.
- Foreclosed property decreased to $4.04 million from
$12.32 million at June 30, 2020.
- At June 30, 2021, we had $61.02 million in loan
modifications made in accordance with section 4013 of the
CARES Act, a decline of $1.92 billion, or 96.92%, from a
reported peak of $1.98 billion at April 30, 2020.
Deposits and
Borrowings:
- Total deposits were $12.96 billion compared to
$12.14 billion at March 31, 2021 and $11.26 billion
at June 30, 2020.
- Total loans to deposits were 72.69% compared to 80.19% at
March 31, 2021 and 87.01% at June 30, 2020.
- Non-interest bearing deposits were 40.44% of total deposits at
June 30, 2021 compared to 39.87% at March 31, 2021 and
37.52% at June 30, 2020.
- Total borrowings were $0.59 billion compared to
$0.76 billion at March 31, 2021 and $2.33 billion at
June 30, 2020.
Capital:
- Common equity tier 1 capital ratio of 12.42%.
- Tier 1 leverage capital ratio of 9.44%.
- Tier 1 risk-based capital ratio of 12.57%.
- Total risk-based capital ratio of 15.76%.
- Book value per common share was $25.51 compared to $24.78 at
March 31, 2021 and $23.50 at June 30, 2020.
- Tangible book value per common share (non-GAAP) was $18.70
compared to $17.94 at March 31, 2021 and $16.68 at
June 30, 2020.
About TowneBank:
Founded in 1999, TowneBank is a company built on relationships,
offering a full range of banking and other financial services, with
a mission of serving others and enriching lives. Dedicated to
a culture of caring, Towne values all employees and members by
embracing their diverse talents, perspectives, and experiences.
Today, TowneBank operates over 40 banking offices throughout
Hampton Roads and Central Virginia, as well as Northeastern and
Central North Carolina – serving as a local leader in promoting the
social, cultural, and economic growth in each community.
Towne offers a competitive array of business and personal banking
solutions, delivered with only the highest ethical standards.
Experienced local bankers providing a higher level of expertise and
personal attention with local decision-making are key to the
TowneBank strategy. TowneBank has grown its capabilities
beyond banking to provide expertise 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. With total assets of $15.80 billion as
of June 30, 2021, 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 that may cause actual
results to differ materially from those contemplated by such
forward-looking statements include the impact of the COVID-19
pandemic and the associated efforts to limit its spread;
competitive pressures in the banking industry that may increase
significantly; changes in the interest rate environment that may
reduce margins and/or the volumes and values of loans made or held
as well as the value of other financial assets held; changes in the
creditworthiness of customers and the possible impairment of the
collectability of loans; general economic conditions, either
nationally or regionally, that may be less favorable than expected,
resulting in, among other things, a deterioration in credit quality
and/or a reduced demand for credit or other services; changes in
the legislative or regulatory environment, including changes in
accounting standards and tax laws, that may adversely affect
TowneBank’s business; costs or difficulties related to the
integration of the businesses TowneBank has acquired may be greater
than expected; expected revenue growth or cost savings associated
with pending or recently completed acquisitions may not be fully
realized or realized within the expected time frame; cybersecurity
threats or attacks, the implementation of new technologies, and the
ability to develop and maintain reliable electronic systems;
TowneBank’s competitors may have greater financial resources and
develop products that enable them to compete more successfully;
changes in business conditions; changes in the securities market;
changes in the local economy with regard to TowneBank’s market
areas; 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, 757-638-6780
J. Morgan Davis, President and Chief Executive Officer,
757-673-1673
Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813
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TOWNEBANK
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Selected Financial Highlights
(unaudited)
|
(dollars in thousands, except per share
data)
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Three Months Ended
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|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
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June 30, |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Income and Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
167,321 |
|
|
$ |
182,509 |
|
|
$ |
171,848 |
|
|
$ |
192,135 |
|
|
$ |
162,656 |
|
Net income |
58,002 |
|
|
72,631 |
|
|
53,891 |
|
|
50,715 |
|
|
37,222 |
|
Net income available to common shareholders |
55,803 |
|
|
68,995 |
|
|
50,082 |
|
|
34,464 |
|
|
34,605 |
|
Pre-provision, pre-tax, net revenues (non-GAAP) |
59,728 |
|
|
81,547 |
|
|
62,107 |
|
|
73,903 |
|
|
69,014 |
|
Net income per common share - diluted |
0.77 |
|
|
0.95 |
|
|
0.69 |
|
|
0.48 |
|
|
0.48 |
|
Book value per common share |
25.51 |
|
|
24.78 |
|
|
24.31 |
|
|
23.83 |
|
|
23.50 |
|
Book value per common share - tangible (non-GAAP) |
18.70 |
|
|
17.94 |
|
|
17.46 |
|
|
17.06 |
|
|
16.68 |
|
Return on average assets |
1.48 |
% |
|
1.92 |
% |
|
1.35 |
% |
|
0.89 |
% |
|
0.97 |
% |
Return on average assets - tangible (non-GAAP) |
1.59 |
% |
|
2.05 |
% |
|
1.46 |
% |
|
0.97 |
% |
|
1.07 |
% |
Return on average equity |
12.21 |
% |
|
15.56 |
% |
|
11.26 |
% |
|
7.85 |
% |
|
8.18 |
% |
Return on average equity - tangible (non-GAAP) |
17.38 |
% |
|
22.19 |
% |
|
16.28 |
% |
|
11.66 |
% |
|
12.32 |
% |
Return on average common equity |
12.31 |
% |
|
15.70 |
% |
|
11.36 |
% |
|
7.91 |
% |
|
8.24 |
% |
Return on average common equity - tangible
(non-GAAP) |
17.57 |
% |
|
22.45 |
% |
|
16.48 |
% |
|
11.79 |
% |
|
12.44 |
% |
Noninterest income as a percentage of total revenue |
39.55 |
% |
|
45.21 |
% |
|
41.45 |
% |
|
49.64 |
% |
|
42.66 |
% |
Regulatory Capital
Ratios (1): |
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Common equity tier 1 |
12.42 |
% |
|
12.15 |
% |
|
11.87 |
% |
|
11.75 |
% |
|
11.54 |
% |
Tier 1 |
12.57 |
% |
|
12.30 |
% |
|
12.04 |
% |
|
11.91 |
% |
|
11.67 |
% |
Total |
15.76 |
% |
|
15.59 |
% |
|
15.42 |
% |
|
15.35 |
% |
|
14.91 |
% |
Tier 1 leverage ratio |
9.44 |
% |
|
9.54 |
% |
|
8.99 |
% |
|
8.89 |
% |
|
9.05 |
% |
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
9.67x |
|
|
9.09x |
|
|
10.74x |
|
|
7.31x |
|
|
5.34x |
|
Allowance for credit losses on loans to period end loans |
1.15 |
% |
|
1.19 |
% |
|
1.25 |
% |
|
1.22 |
% |
|
0.92 |
% |
Allowance for credit losses on loans to period end loans excluding
PPP loans (non-GAAP) |
1.22 |
% |
|
1.31 |
% |
|
1.37 |
% |
|
1.37 |
% |
|
1.04 |
% |
Nonperforming loans to period end loans |
0.12 |
% |
|
0.13 |
% |
|
0.12 |
% |
|
0.17 |
% |
|
0.17 |
% |
Nonperforming assets to period end assets |
0.10 |
% |
|
0.11 |
% |
|
0.11 |
% |
|
0.19 |
% |
|
0.19 |
% |
Net charge-offs (recoveries) to average loans (annualized) |
(0.01 |
)% |
|
0.03 |
% |
|
— |
% |
|
(0.01 |
)% |
|
— |
% |
Net charge-offs (recoveries) |
$ |
(137 |
) |
|
$ |
669 |
|
|
$ |
109 |
|
|
$ |
(328 |
) |
|
$ |
(102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
11,178 |
|
|
$ |
12,768 |
|
|
$ |
11,188 |
|
|
$ |
16,295 |
|
|
$ |
16,935 |
|
Former bank premises |
— |
|
|
750 |
|
|
750 |
|
|
750 |
|
|
— |
|
Foreclosed property |
4,041 |
|
|
3,748 |
|
|
4,276 |
|
|
11,695 |
|
|
12,315 |
|
Total nonperforming assets |
$ |
15,219 |
|
|
$ |
17,266 |
|
|
$ |
16,214 |
|
|
$ |
28,740 |
|
|
$ |
29,250 |
|
Loans past due 90 days and still accruing interest |
$ |
1,584 |
|
|
$ |
108 |
|
|
$ |
528 |
|
|
$ |
19 |
|
|
$ |
464 |
|
Allowance for credit losses on loans |
$ |
108,130 |
|
|
$ |
116,077 |
|
|
$ |
120,157 |
|
|
$ |
119,058 |
|
|
$ |
90,467 |
|
Mortgage Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans originated, mortgage |
$ |
1,050,663 |
|
|
$ |
1,187,595 |
|
|
$ |
1,257,963 |
|
|
$ |
1,292,801 |
|
|
$ |
1,116,782 |
|
Loans originated, joint venture |
403,864 |
|
|
417,177 |
|
|
429,848 |
|
|
498,100 |
|
|
357,815 |
|
Total loans originated |
$ |
1,454,527 |
|
|
$ |
1,604,772 |
|
|
$ |
1,687,811 |
|
|
$ |
1,790,901 |
|
|
$ |
1,474,597 |
|
Number of loans originated |
4,514 |
|
|
5,164 |
|
|
5,481 |
|
|
5,817 |
|
|
4,818 |
|
Number of originators |
222 |
|
|
229 |
|
|
228 |
|
|
224 |
|
|
216 |
|
Purchase % |
76.95 |
% |
|
53.45 |
% |
|
59.76 |
% |
|
61.21 |
% |
|
51.26 |
% |
Loans sold |
$ |
1,485,057 |
|
|
$ |
1,601,480 |
|
|
$ |
1,845,926 |
|
|
$ |
1,833,590 |
|
|
$ |
1,398,649 |
|
Rate lock asset |
$ |
7,760 |
|
|
$ |
12,522 |
|
|
$ |
11,781 |
|
|
$ |
10,480 |
|
|
$ |
7,202 |
|
Gross realized gain on sales and fees as a % of loans
originated |
3.64 |
% |
|
4.01 |
% |
|
4.02 |
% |
|
3.65 |
% |
|
3.17 |
% |
Other Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
2.92 |
% |
|
3.04 |
% |
|
2.97 |
% |
|
2.70 |
% |
|
2.85 |
% |
Net interest margin-fully tax equivalent (non-GAAP) |
2.94 |
% |
|
3.06 |
% |
|
2.98 |
% |
|
2.72 |
% |
|
2.87 |
% |
Average earning assets/total average assets |
91.89 |
% |
|
91.47 |
% |
|
91.59 |
% |
|
92.09 |
% |
|
91.33 |
% |
Average loans/average deposits |
78.22 |
% |
|
82.71 |
% |
|
83.42 |
% |
|
86.29 |
% |
|
91.81 |
% |
Average noninterest deposits/total average deposits |
40.21 |
% |
|
38.39 |
% |
|
39.61 |
% |
|
37.76 |
% |
|
36.52 |
% |
Period end equity/period end total assets |
11.83 |
% |
|
12.04 |
% |
|
12.20 |
% |
|
11.82 |
% |
|
11.05 |
% |
Efficiency ratio (non-GAAP) |
61.46 |
% |
|
52.11 |
% |
|
60.02 |
% |
|
57.36 |
% |
|
55.17 |
% |
(1) Current
reporting period regulatory capital ratios are
preliminary |
TOWNEBANK
|
Selected Data
(unaudited)
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities |
|
|
|
|
|
|
|
|
|
% Change
|
|
Q2 |
|
Q2 |
|
Q1 |
|
Q2 21 vs. |
|
Q2 21 vs. |
Available-for-sale
securities, at fair value |
2021 |
|
2020 |
|
2021 |
|
Q2 20 |
|
Q1 21 |
U.S. agency securities |
$ |
206,151 |
|
|
$ |
118,176 |
|
|
$ |
201,787 |
|
|
74.44 |
% |
|
2.16 |
% |
U.S. Treasury notes |
1,013 |
|
|
1,010 |
|
|
1,019 |
|
|
0.30 |
% |
|
(0.59 |
)% |
Municipal securities |
334,633 |
|
|
313,322 |
|
|
334,751 |
|
|
6.80 |
% |
|
(0.04 |
)% |
Trust preferred and other
corporate securities |
31,680 |
|
|
59,598 |
|
|
31,241 |
|
|
(46.84 |
)% |
|
1.41 |
% |
Mortgage-backed securities
issued by GSE and GNMA |
881,078 |
|
|
774,658 |
|
|
849,418 |
|
|
13.74 |
% |
|
3.73 |
% |
Allowance for credit
losses |
(134 |
) |
|
(140 |
) |
|
(210 |
) |
|
(4.29 |
)% |
|
(36.19 |
)% |
Total |
$ |
1,454,421 |
|
|
$ |
1,266,624 |
|
|
$ |
1,418,006 |
|
|
14.83 |
% |
|
2.57 |
% |
Gross unrealized
gains (losses) reflected in financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross unrealized
gains |
$ |
65,152 |
|
|
$ |
61,559 |
|
|
$ |
38,751 |
|
|
5.84 |
% |
|
68.13 |
% |
Total gross unrealized
losses |
(22,968 |
) |
|
(1,674 |
) |
|
(10,632 |
) |
|
1,272.04 |
% |
|
116.03 |
% |
Net unrealized gains (losses)
and other adjustments on AFS securities |
$ |
42,184 |
|
|
$ |
59,885 |
|
|
$ |
28,119 |
|
|
(29.56 |
)% |
|
50.02 |
% |
Held-to-maturity
securities, at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust preferred corporate
securities |
$ |
2,297 |
|
|
$ |
2,345 |
|
|
$ |
2,309 |
|
|
(2.05 |
)% |
|
(0.52 |
)% |
Municipal securities |
5,053 |
|
|
28,854 |
|
|
5,032 |
|
|
(82.49 |
)% |
|
0.42 |
% |
Mortgage-backed securities
issued by GSE and GNMA |
8,039 |
|
|
10,395 |
|
|
8,639 |
|
|
(22.66 |
)% |
|
(6.95 |
)% |
Allowance for credit
losses |
(97 |
) |
|
(121 |
) |
|
(97 |
) |
|
(19.83 |
)% |
|
— |
|
Total |
$ |
15,292 |
|
|
$ |
41,473 |
|
|
$ |
15,883 |
|
|
(63.13 |
)% |
|
(3.72 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized
gains (losses) not reflected in financial
statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross unrealized
gains |
$ |
1,708 |
|
|
$ |
1,980 |
|
|
$ |
1,598 |
|
|
(13.74 |
)% |
|
6.88 |
% |
Total gross unrealized
losses |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net unrealized gains (losses)
in HTM securities |
$ |
1,708 |
|
|
$ |
1,980 |
|
|
$ |
1,598 |
|
|
(13.74 |
)% |
|
6.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held For
Investment (1) |
|
|
|
|
|
|
|
|
|
% Change
|
|
Q2 |
|
Q2 |
|
Q1 |
|
Q2 21 vs. |
|
Q2 21 vs. |
|
2021 |
|
2020 |
|
2021 |
|
Q2 20 |
|
Q1 21 |
Real estate - construction and
development |
$ |
1,029,811 |
|
|
$ |
1,178,832 |
|
|
$ |
1,031,267 |
|
|
(12.64 |
)% |
|
(0.14 |
)% |
Commercial real estate - owner
occupied |
1,445,328 |
|
|
1,383,294 |
|
|
1,439,412 |
|
|
4.48 |
% |
|
0.41 |
% |
Commercial real estate - non
owner occupied |
2,597,405 |
|
|
2,332,447 |
|
|
2,477,315 |
|
|
11.36 |
% |
|
4.85 |
% |
Real estate - multifamily |
343,764 |
|
|
277,947 |
|
|
360,125 |
|
|
23.68 |
% |
|
(4.54 |
)% |
Residential 1-4 family |
1,166,898 |
|
|
1,227,961 |
|
|
1,173,761 |
|
|
(4.97 |
)% |
|
(0.58 |
)% |
HELOC |
390,726 |
|
|
442,569 |
|
|
400,314 |
|
|
(11.71 |
)% |
|
(2.40 |
)% |
Commercial and industrial
business (C&I) |
1,529,788 |
|
|
2,156,428 |
|
|
2,005,558 |
|
|
(29.06 |
)% |
|
(23.72 |
)% |
Government |
479,664 |
|
|
346,734 |
|
|
398,579 |
|
|
38.34 |
% |
|
20.34 |
% |
Indirect |
310,492 |
|
|
270,321 |
|
|
278,567 |
|
|
14.86 |
% |
|
11.46 |
% |
Consumer loans and other |
129,702 |
|
|
185,356 |
|
|
169,685 |
|
|
(30.03 |
)% |
|
(23.56 |
)% |
Total |
$ |
9,423,578 |
|
|
$ |
9,801,889 |
|
|
$ |
9,734,583 |
|
|
(3.86 |
)% |
|
(3.19 |
)% |
|
(1) Paycheck
Protection Program loans totaling $0.52 billion, $1.09 billion, and
$0.90 billion, primarily in C&I, are included in Q2 2021, Q2
2020, and Q1 2021, respectively. |
Deposits |
|
|
|
|
|
|
|
|
|
% Change
|
|
Q2 |
|
Q2 |
|
Q1 |
|
Q2 21 vs. |
|
Q2 21 vs. |
|
2021 |
|
2020 |
|
2021 |
|
Q2 20 |
|
Q1 21 |
Noninterest-bearing
demand |
$ |
5,243,074 |
|
|
$ |
4,226,208 |
|
|
$ |
4,840,678 |
|
|
24.06 |
% |
|
8.31 |
% |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
5,373,146 |
|
|
4,223,391 |
|
|
5,062,461 |
|
|
27.22 |
% |
|
6.14 |
% |
Savings |
349,552 |
|
|
298,673 |
|
|
342,554 |
|
|
17.04 |
% |
|
2.04 |
% |
Certificates of deposits |
1,998,828 |
|
|
2,516,666 |
|
|
1,893,951 |
|
|
(20.58 |
)% |
|
5.54 |
% |
Total |
$ |
12,964,600 |
|
|
$ |
11,264,938 |
|
|
$ |
12,139,644 |
|
|
15.09 |
% |
|
6.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
June 30, 2021 |
|
March 31, 2021 |
|
June 30, 2020 |
|
|
|
|
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) |
$ |
9,604,805 |
|
|
$ |
101,490 |
|
|
4.24 |
% |
|
$ |
9,647,129 |
|
|
$ |
101,960 |
|
|
4.29 |
% |
|
$ |
9,619,931 |
|
|
$ |
102,656 |
|
|
4.29 |
% |
Taxable investment securities |
1,351,922 |
|
|
6,476 |
|
|
1.92 |
% |
|
1,303,535 |
|
|
6,604 |
|
|
2.03 |
% |
|
1,198,776 |
|
|
7,367 |
|
|
2.46 |
% |
Tax-exempt investment securities |
128,094 |
|
|
434 |
|
|
1.36 |
% |
|
139,859 |
|
|
542 |
|
|
1.55 |
% |
|
147,489 |
|
|
836 |
|
|
2.27 |
% |
Total securities |
1,480,016 |
|
|
6,910 |
|
|
1.87 |
% |
|
1,443,394 |
|
|
7,146 |
|
|
1.98 |
% |
|
1,346,265 |
|
|
8,203 |
|
|
2.44 |
% |
Interest-bearing deposits |
2,327,310 |
|
|
619 |
|
|
0.11 |
% |
|
1,715,110 |
|
|
416 |
|
|
0.10 |
% |
|
1,729,140 |
|
|
433 |
|
|
0.10 |
% |
Loans held for sale |
503,706 |
|
|
3,711 |
|
|
2.95 |
% |
|
536,997 |
|
|
3,361 |
|
|
2.50 |
% |
|
464,796 |
|
|
3,811 |
|
|
3.28 |
% |
Total earning assets |
13,915,837 |
|
|
112,730 |
|
|
3.25 |
% |
|
13,342,630 |
|
|
112,883 |
|
|
3.44 |
% |
|
13,160,132 |
|
|
115,103 |
|
|
3.52 |
% |
Less: allowance for credit
losses |
(116,025
|
) |
|
|
|
|
|
|
|
(120,934
|
) |
|
|
|
|
|
|
|
(69,451
|
) |
|
|
|
|
|
|
Total nonearning assets |
1,344,076 |
|
|
|
|
|
|
|
|
1,370,720 |
|
|
|
|
|
|
|
|
1,318,787 |
|
|
|
|
|
|
|
Total assets |
$ |
15,143,888 |
|
|
|
|
|
|
|
|
$ |
14,592,416 |
|
|
|
|
|
|
|
|
$ |
14,409,468 |
|
|
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
5,179,907 |
|
|
$ |
2,004 |
|
|
0.16 |
% |
|
$ |
4,904,885 |
|
|
$ |
2,075 |
|
|
0.17 |
% |
|
$ |
3,857,757 |
|
|
$ |
2,491 |
|
|
0.26 |
% |
Savings |
346,177 |
|
|
528 |
|
|
0.61 |
% |
|
332,006 |
|
|
522 |
|
|
0.64 |
% |
|
290,201 |
|
|
554 |
|
|
0.77 |
% |
Certificates of deposit |
1,816,283 |
|
|
4,612 |
|
|
1.02 |
% |
|
1,959,225 |
|
|
5,951 |
|
|
1.23 |
% |
|
2,503,648 |
|
|
12,027 |
|
|
1.93 |
% |
Total interest-bearing
deposits |
7,342,367 |
|
|
7,144 |
|
|
0.39 |
% |
|
7,196,116 |
|
|
8,548 |
|
|
0.48 |
% |
|
6,651,606 |
|
|
15,072 |
|
|
0.91 |
% |
Borrowings |
476,122 |
|
|
565 |
|
|
0.47 |
% |
|
562,451 |
|
|
822 |
|
|
0.58 |
% |
|
1,741,832 |
|
|
3,238 |
|
|
0.74 |
% |
Subordinated debt, net |
249,260 |
|
|
2,962 |
|
|
4.75 |
% |
|
249,114 |
|
|
2,930 |
|
|
4.70 |
% |
|
248,660 |
|
|
2,962 |
|
|
4.76 |
% |
Total interest-bearing liabilities |
8,067,749 |
|
|
10,671 |
|
|
0.53 |
% |
|
8,007,681 |
|
|
12,300 |
|
|
0.62 |
% |
|
8,642,098 |
|
|
21,272 |
|
|
0.99 |
% |
Demand deposits |
4,937,754 |
|
|
|
|
|
|
|
|
4,483,444 |
|
|
|
|
|
|
|
|
3,826,439 |
|
|
|
|
|
|
|
Other noninterest-bearing
liabilities |
304,793 |
|
|
|
|
|
|
|
|
303,524 |
|
|
|
|
|
|
|
|
239,154 |
|
|
|
|
|
|
|
Total liabilities |
13,310,296 |
|
|
|
|
|
|
|
|
12,794,649 |
|
|
|
|
|
|
|
|
12,707,691 |
|
|
|
|
|
|
|
Shareholders’ equity |
1,833,592 |
|
|
|
|
|
|
|
|
1,797,767 |
|
|
|
|
|
|
|
|
1,701,777 |
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
15,143,888 |
|
|
|
|
|
|
|
|
$ |
14,592,416 |
|
|
|
|
|
|
|
|
$ |
14,409,468 |
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) |
|
|
|
$ |
102,059 |
|
|
|
|
|
|
|
|
$ |
100,583 |
|
|
|
|
|
|
|
|
$ |
93,831 |
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(915
|
) |
|
|
|
|
|
|
|
(593
|
) |
|
|
|
|
|
|
|
(557
|
) |
|
|
|
Net interest income
(GAAP) |
|
|
|
$ |
101,144 |
|
|
|
|
|
|
|
|
$ |
99,990 |
|
|
|
|
|
|
|
|
$ |
93,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(2)(3) |
|
|
|
|
|
|
2.72 |
% |
|
|
|
|
|
|
|
2.81 |
% |
|
|
|
|
|
|
|
2.53 |
% |
Interest expense as a percent
of average earning assets |
|
|
|
|
|
|
0.31 |
% |
|
|
|
|
|
|
|
0.37 |
% |
|
|
|
|
|
|
|
0.65 |
% |
Net interest margin (tax
equivalent basis) (3)(4) |
|
|
|
|
|
|
2.94 |
% |
|
|
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
|
|
2.87 |
% |
Total cost of deposits |
|
|
|
|
|
|
0.23 |
% |
|
|
|
|
|
|
|
0.30 |
% |
|
|
|
|
|
|
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
June 30, 2021, June 30, 2020, and March 31, 2021 includes
average PPP balances of $0.77 billion, $0.81 billion and $0.88
billion, and related interest and fee income of
$10.02 million, $5.81 million, and $11.29 million,
respectively. |
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
Six Months Ended
June 30,
|
|
June 30, 2021
|
|
June 30, 2020
|
|
2021 Compared with 2020
|
|
|
|
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) |
$ |
9,625,850 |
|
|
$ |
203,451 |
|
|
4.26 |
% |
|
$ |
9,085,074 |
|
|
$ |
203,221 |
|
|
4.50 |
% |
|
$ |
230 |
|
|
$ |
(11,198 |
) |
|
$ |
11,427 |
|
Taxable investment securities |
1,327,862 |
|
|
13,080 |
|
|
1.97 |
% |
|
1,277,593 |
|
|
16,578 |
|
|
2.60 |
% |
|
(3,498
|
) |
|
(4,128
|
) |
|
630 |
|
Tax-exempt investment securities |
133,944 |
|
|
976 |
|
|
1.46 |
% |
|
137,846 |
|
|
1,698 |
|
|
2.46 |
% |
|
(722
|
) |
|
(675
|
) |
|
(47
|
) |
Total securities |
1,461,806 |
|
|
14,056 |
|
|
1.92 |
% |
|
1,415,439 |
|
|
18,276 |
|
|
2.58 |
% |
|
(4,220
|
) |
|
(4,803
|
) |
|
583 |
|
Interest-bearing deposits |
2,022,901 |
|
|
1,035 |
|
|
0.10 |
% |
|
472,589 |
|
|
1,535 |
|
|
0.65 |
% |
|
(500
|
) |
|
(2,153
|
) |
|
1,653 |
|
Loans held for sale |
520,260 |
|
|
7,072 |
|
|
2.72 |
% |
|
398,933 |
|
|
6,799 |
|
|
3.41 |
% |
|
273 |
|
|
(1,543
|
) |
|
1,816 |
|
Total earning assets |
13,630,817 |
|
|
225,614 |
|
|
3.34 |
% |
|
11,372,035 |
|
|
229,831 |
|
|
4.06 |
% |
|
(4,217
|
) |
|
(19,697
|
) |
|
15,479 |
|
Less: allowance for credit losses |
(118,466
|
) |
|
|
|
|
|
|
|
(62,390
|
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonearning assets |
1,357,324 |
|
|
|
|
|
|
|
|
1,919,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
14,869,675 |
|
|
|
|
|
|
|
|
$ |
13,229,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
5,043,155 |
|
|
$ |
4,080 |
|
|
0.16 |
% |
|
$ |
3,689,732 |
|
|
$ |
7,809 |
|
|
0.43 |
% |
|
$ |
(3,729 |
) |
|
$ |
(5,920 |
) |
|
$ |
2,191 |
|
Savings |
339,131 |
|
|
1,050 |
|
|
0.62 |
% |
|
283,574 |
|
|
1,147 |
|
|
0.81 |
% |
|
(97
|
) |
|
(296
|
) |
|
199 |
|
Certificates of deposit |
1,887,359 |
|
|
10,563 |
|
|
1.13 |
% |
|
2,468,873 |
|
|
25,177 |
|
|
2.05 |
% |
|
(14,614
|
) |
|
(9,590
|
) |
|
(5,024
|
) |
Total interest-bearing
deposits |
7,269,645 |
|
|
15,693 |
|
|
0.44 |
% |
|
6,442,179 |
|
|
34,133 |
|
|
1.07 |
% |
|
(18,440
|
) |
|
(15,806
|
) |
|
(2,634
|
) |
Borrowings |
519,048 |
|
|
1,387 |
|
|
0.53 |
% |
|
1,210,789 |
|
|
5,820 |
|
|
0.95 |
% |
|
(4,433
|
) |
|
(1,931
|
) |
|
(2,502
|
) |
Subordinated debt, net |
249,188 |
|
|
5,892 |
|
|
4.73 |
% |
|
248,585 |
|
|
5,923 |
|
|
4.77 |
% |
|
(31
|
) |
|
(45
|
) |
|
14 |
|
Total interest-bearing
liabilities |
8,037,881 |
|
|
22,972 |
|
|
0.58 |
% |
|
7,901,553 |
|
|
45,876 |
|
|
1.17 |
% |
|
(22,904
|
) |
|
(17,782
|
) |
|
(5,122
|
) |
Demand deposits |
4,711,854 |
|
|
|
|
|
|
|
|
3,394,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing
liabilities |
304,162 |
|
|
|
|
|
|
|
|
249,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
13,053,897 |
|
|
|
|
|
|
|
|
11,545,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
1,815,778 |
|
|
|
|
|
|
|
|
1,683,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
$ |
14,869,675 |
|
|
|
|
|
|
|
|
$ |
13,229,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax-equivalent basis) |
|
|
|
$ |
202,642 |
|
|
|
|
|
|
|
|
$ |
183,955 |
|
|
|
|
|
$ |
18,687 |
|
|
$ |
(1,915 |
) |
|
$ |
20,601 |
|
Reconciliation of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(1,508
|
) |
|
|
|
|
|
|
|
(1,185
|
) |
|
|
|
|
(323
|
) |
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
|
$ |
201,134 |
|
|
|
|
|
|
|
|
$ |
182,770 |
|
|
|
|
|
$ |
18,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(2)(4) |
|
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
|
|
|
|
Interest expense as a percent of average earning assets |
|
|
|
|
|
|
0.34 |
% |
|
|
|
|
|
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
Net interest margin (tax
equivalent basis) (3)(4) |
|
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
Total cost of deposits |
|
|
|
|
|
|
0.26 |
% |
|
|
|
|
|
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
June 30, 2021 and June 30, 2020 includes average PPP balances
of $0.79 billion and $0.40 billion and related interest
income of $17.44 million and $5.81 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) |
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
Cash and due from banks |
$ |
117,797 |
|
|
$ |
41,514 |
|
Interest-bearing deposits at
FRB - Richmond |
2,970,490 |
|
|
1,795,241 |
|
Interest-bearing deposits in
financial institutions |
31,971 |
|
|
27,532 |
|
Total Cash and Cash Equivalents |
3,120,258 |
|
|
1,864,287 |
|
Securities available for sale,
at fair value (amortized cost of $1,412,371 and $1,310,250, and
allowance for credit losses of $134 and $348 at June 30, 2021 and
December 31, 2020, respectively.) |
1,454,421 |
|
|
1,368,224 |
|
Securities held to maturity,
at amortized cost (fair value $17,097 and $18,469 at June 30, 2021
and December 31, 2020, respectively.) |
15,389 |
|
|
16,512 |
|
Less: allowance for credit losses |
(97 |
) |
|
(97 |
) |
Securities held to maturity, net of allowance for credit
losses |
15,292 |
|
|
16,415 |
|
Other equity securities |
6,395 |
|
|
6,492 |
|
FHLB stock |
16,909 |
|
|
30,135 |
|
Total Securities |
1,493,017 |
|
|
1,421,266 |
|
Mortgage loans held for
sale |
554,447 |
|
|
540,798 |
|
Loans, net of unearned income
and deferred costs |
9,423,578 |
|
|
9,629,068 |
|
Less: allowance for credit losses |
(108,130 |
) |
|
(120,157 |
) |
Net Loans |
9,315,448 |
|
|
9,508,911 |
|
Premises and equipment,
net |
265,644 |
|
|
260,242 |
|
Goodwill |
452,328 |
|
|
452,328 |
|
Other intangible assets,
net |
42,271 |
|
|
45,533 |
|
BOLI |
249,213 |
|
|
246,109 |
|
Other assets |
311,209 |
|
|
286,970 |
|
TOTAL ASSETS |
$ |
15,803,835 |
|
|
$ |
14,626,444 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing demand |
$ |
5,243,074 |
|
|
$ |
4,374,566 |
|
Interest-bearing: |
|
|
|
Demand and money market accounts |
5,373,146 |
|
|
4,819,604 |
|
Savings |
349,552 |
|
|
330,091 |
|
Certificates of deposit |
1,998,828 |
|
|
2,048,905 |
|
Total Deposits |
12,964,600 |
|
|
11,573,166 |
|
Advances from the FHLB |
255,706 |
|
|
456,038 |
|
Subordinated debt, net |
249,353 |
|
|
249,055 |
|
FRB PPP lending facility |
— |
|
|
182,852 |
|
Repurchase agreements and
other borrowings |
85,042 |
|
|
67,786 |
|
Total Borrowings |
590,101 |
|
|
955,731 |
|
Other liabilities |
379,278 |
|
|
313,719 |
|
TOTAL LIABILITIES |
13,933,979 |
|
|
12,842,616 |
|
Preferred stock, authorized
and unissued shares - 2,000,000 |
— |
|
|
— |
|
Common stock, $1.667 par:
150,000,000 shares authorized |
|
|
|
72,671,891 and 72,667,541 shares issued at |
|
|
|
June 30, 2021 and December 31, 2020, respectively |
121,144 |
|
|
121,132 |
|
Capital surplus |
1,048,332 |
|
|
1,046,642 |
|
Retained earnings |
655,095 |
|
|
557,889 |
|
Common stock issued to
deferred compensation trust, at cost |
|
|
|
905,484 and 873,486 shares at June 30, 2021 and December 31,
2020, respectively |
(18,076 |
) |
|
(16,969 |
) |
Deferred compensation
trust |
18,076 |
|
|
16,969 |
|
Accumulated other
comprehensive income (loss) |
29,273 |
|
|
41,184 |
|
TOTAL SHAREHOLDERS’ EQUITY |
1,853,844 |
|
|
1,766,847 |
|
Noncontrolling interest |
16,012 |
|
|
16,981 |
|
TOTAL EQUITY |
1,869,856 |
|
|
1,783,828 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
15,803,835 |
|
|
$ |
14,626,444 |
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Consolidated Statements of Income (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
INTEREST
INCOME: |
|
|
|
|
|
|
|
Loans, including fees |
$ |
100,614 |
|
|
$ |
102,139 |
|
|
$ |
202,011 |
|
|
$ |
202,201 |
|
Investment securities |
6,871 |
|
|
8,163 |
|
|
13,988 |
|
|
18,112 |
|
Interest-bearing deposits in financial institutions and federal
funds sold |
619 |
|
|
433 |
|
|
1,035 |
|
|
1,535 |
|
Mortgage loans held for sale |
3,711 |
|
|
3,811 |
|
|
7,072 |
|
|
6,799 |
|
Total interest income |
111,815 |
|
|
114,546 |
|
|
224,106 |
|
|
228,647 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Deposits |
7,144 |
|
|
15,072 |
|
|
15,693 |
|
|
34,134 |
|
Advances from the FHLB |
274 |
|
|
2,595 |
|
|
771 |
|
|
5,088 |
|
Subordinated debt, net |
2,962 |
|
|
2,962 |
|
|
5,892 |
|
|
5,923 |
|
Repurchase agreements and other borrowings |
291 |
|
|
643 |
|
|
616 |
|
|
732 |
|
Total interest expense |
10,671 |
|
|
21,272 |
|
|
22,972 |
|
|
45,877 |
|
Net interest
income |
101,144 |
|
|
93,274 |
|
|
201,134 |
|
|
182,770 |
|
PROVISION FOR CREDIT
LOSSES |
(10,055 |
) |
|
26,945 |
|
|
(14,082 |
) |
|
33,961 |
|
Net interest income after provision for credit
losses |
111,199 |
|
|
66,329 |
|
|
215,216 |
|
|
148,809 |
|
NONINTEREST
INCOME: |
|
|
|
|
|
|
|
Residential mortgage banking income, net |
25,524 |
|
|
29,715 |
|
|
62,937 |
|
|
37,131 |
|
Insurance commissions and other title fees and income, net |
18,331 |
|
|
17,612 |
|
|
34,656 |
|
|
34,505 |
|
Real estate brokerage and property management income, net |
10,984 |
|
|
10,781 |
|
|
28,918 |
|
|
17,719 |
|
Service charges on deposit accounts |
2,391 |
|
|
1,888 |
|
|
4,580 |
|
|
4,328 |
|
Credit card merchant fees, net |
1,667 |
|
|
1,109 |
|
|
2,969 |
|
|
2,287 |
|
BOLI |
1,541 |
|
|
1,584 |
|
|
3,060 |
|
|
4,690 |
|
Other income |
5,487 |
|
|
3,763 |
|
|
10,324 |
|
|
8,990 |
|
Net gain/(loss) on investment securities |
252 |
|
|
2,930 |
|
|
1,252 |
|
|
7,932 |
|
Total noninterest income |
66,177 |
|
|
69,382 |
|
|
148,696 |
|
|
117,582 |
|
NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee benefits |
61,365 |
|
|
56,926 |
|
|
119,801 |
|
|
112,793 |
|
Occupancy expense |
7,559 |
|
|
7,227 |
|
|
15,630 |
|
|
14,728 |
|
Furniture and equipment |
3,622 |
|
|
3,564 |
|
|
7,134 |
|
|
7,205 |
|
Amortization - intangibles |
2,719 |
|
|
2,901 |
|
|
5,442 |
|
|
5,851 |
|
Software expense |
4,494 |
|
|
3,492 |
|
|
8,688 |
|
|
6,984 |
|
Data processing |
3,414 |
|
|
2,718 |
|
|
6,652 |
|
|
5,509 |
|
Professional fees |
2,259 |
|
|
2,972 |
|
|
4,598 |
|
|
6,040 |
|
Advertising and marketing |
3,257 |
|
|
1,986 |
|
|
6,225 |
|
|
5,570 |
|
Other expenses |
16,705 |
|
|
9,239 |
|
|
28,549 |
|
|
23,233 |
|
Total noninterest expense |
105,394 |
|
|
91,025 |
|
|
202,719 |
|
|
187,913 |
|
Income before income
tax expense and noncontrolling interest |
71,982 |
|
|
44,686 |
|
|
161,193 |
|
|
78,478 |
|
Provision for income tax
expense |
13,980 |
|
|
7,464 |
|
|
30,559 |
|
|
13,651 |
|
Net
income |
$ |
58,002 |
|
|
$ |
37,222 |
|
|
$ |
130,634 |
|
|
$ |
64,827 |
|
Net income attributable to
noncontrolling interest |
(2,199 |
) |
|
(2,617 |
) |
|
(5,835 |
) |
|
(3,838 |
) |
Net income
attributable to TowneBank |
$ |
55,803 |
|
|
$ |
34,605 |
|
|
$ |
124,799 |
|
|
$ |
60,989 |
|
Per common share
information |
|
|
|
|
|
|
|
Basic earnings |
$ |
0.77 |
|
|
$ |
0.48 |
|
|
$ |
1.72 |
|
|
$ |
0.84 |
|
Diluted earnings |
$ |
0.77 |
|
|
$ |
0.48 |
|
|
$ |
1.72 |
|
|
$ |
0.84 |
|
Cash dividends declared |
$ |
0.20 |
|
|
$ |
0.18 |
|
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Consolidated Balance Sheets - Five Quarter
Trend |
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
(unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
117,797 |
|
|
$ |
141,545 |
|
|
$ |
41,514 |
|
|
$ |
114,604 |
|
|
$ |
115,724 |
|
Interest-bearing deposits at
FRB - Richmond |
2,970,490 |
|
|
1,936,458 |
|
|
1,795,241 |
|
|
1,670,186 |
|
|
2,511,152 |
|
Interest-bearing deposits in
financial institutions |
31,971 |
|
|
30,031 |
|
|
27,532 |
|
|
24,890 |
|
|
24,374 |
|
Total Cash and Cash Equivalents |
3,120,258 |
|
|
2,108,034 |
|
|
1,864,287 |
|
|
1,809,680 |
|
|
2,651,250 |
|
Securities available for
sale |
1,454,421 |
|
|
1,418,006 |
|
|
1,368,224 |
|
|
1,310,683 |
|
|
1,266,624 |
|
Securities held to
maturity |
15,389 |
|
|
15,980 |
|
|
16,512 |
|
|
17,131 |
|
|
41,595 |
|
Less: allowance for credit losses |
(97 |
) |
|
(97 |
) |
|
(97 |
) |
|
(90 |
) |
|
(121 |
) |
Securities held to maturity, net of allowance for credit
losses |
15,292 |
|
|
15,883 |
|
|
16,415 |
|
|
17,041 |
|
|
41,474 |
|
Other equity securities |
6,395 |
|
|
6,355 |
|
|
6,492 |
|
|
6,497 |
|
|
6,497 |
|
FHLB stock |
16,909 |
|
|
16,909 |
|
|
30,135 |
|
|
41,829 |
|
|
49,277 |
|
Total Securities |
1,493,017 |
|
|
1,457,153 |
|
|
1,421,266 |
|
|
1,376,050 |
|
|
1,363,872 |
|
Mortgage loans held for
sale |
554,447 |
|
|
582,905 |
|
|
540,798 |
|
|
669,020 |
|
|
610,369 |
|
Loans, net of unearned income
and deferred costs |
9,423,578 |
|
|
9,734,583 |
|
|
9,629,068 |
|
|
9,770,570 |
|
|
9,801,889 |
|
Less: allowance for credit losses |
(108,130 |
) |
|
(116,077 |
) |
|
(120,157 |
) |
|
(119,058 |
) |
|
(90,467 |
) |
Net Loans |
9,315,448 |
|
|
9,618,506 |
|
|
9,508,911 |
|
|
9,651,512 |
|
|
9,711,422 |
|
Premises and equipment,
net |
265,644 |
|
|
261,831 |
|
|
260,242 |
|
|
256,909 |
|
|
257,533 |
|
Goodwill |
452,328 |
|
|
452,328 |
|
|
452,328 |
|
|
446,725 |
|
|
446,725 |
|
Other intangible assets,
net |
42,271 |
|
|
44,808 |
|
|
45,533 |
|
|
45,781 |
|
|
48,632 |
|
BOLI |
249,213 |
|
|
247,655 |
|
|
246,109 |
|
|
244,103 |
|
|
242,493 |
|
Other assets |
311,209 |
|
|
306,176 |
|
|
286,970 |
|
|
295,637 |
|
|
247,962 |
|
TOTAL ASSETS |
$ |
15,803,835 |
|
|
$ |
15,079,396 |
|
|
$ |
14,626,444 |
|
|
$ |
14,795,417 |
|
|
$ |
15,580,258 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
5,243,074 |
|
|
$ |
4,840,678 |
|
|
$ |
4,374,566 |
|
|
$ |
4,464,178 |
|
|
$ |
4,226,208 |
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
5,373,146 |
|
|
5,062,461 |
|
|
4,819,604 |
|
|
4,642,482 |
|
|
4,223,391 |
|
Savings |
349,552 |
|
|
342,554 |
|
|
330,091 |
|
|
312,444 |
|
|
298,673 |
|
Certificates of deposit |
1,998,828 |
|
|
1,893,951 |
|
|
2,048,905 |
|
|
2,285,859 |
|
|
2,516,666 |
|
Total Deposits |
12,964,600 |
|
|
12,139,644 |
|
|
11,573,166 |
|
|
11,704,963 |
|
|
11,264,938 |
|
Advances from the FHLB |
255,706 |
|
|
255,872 |
|
|
456,038 |
|
|
731,202 |
|
|
906,365 |
|
Subordinated debt, net |
249,353 |
|
|
249,204 |
|
|
249,055 |
|
|
248,906 |
|
|
248,756 |
|
FRB PPP lending facility |
— |
|
|
183,164 |
|
|
182,852 |
|
|
— |
|
|
1,111,429 |
|
Repurchase agreements and
other borrowings |
85,042 |
|
|
68,509 |
|
|
67,786 |
|
|
58,061 |
|
|
60,913 |
|
Total Borrowings |
590,101 |
|
|
756,749 |
|
|
955,731 |
|
|
1,038,169 |
|
|
2,327,463 |
|
Other liabilities |
379,278 |
|
|
366,697 |
|
|
313,719 |
|
|
303,582 |
|
|
266,314 |
|
TOTAL LIABILITIES |
13,933,979 |
|
|
13,263,090 |
|
|
12,842,616 |
|
|
13,046,714 |
|
|
13,858,715 |
|
Preferred stock |
|
|
|
|
|
|
|
|
|
Authorized shares - 2,000,000 |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock, $1.667 par
value |
121,144 |
|
|
121,108 |
|
|
121,132 |
|
|
121,115 |
|
|
121,101 |
|
Capital surplus |
1,048,332 |
|
|
1,047,312 |
|
|
1,046,642 |
|
|
1,045,170 |
|
|
1,043,774 |
|
Retained earnings |
655,095 |
|
|
613,826 |
|
|
557,889 |
|
|
520,888 |
|
|
499,502 |
|
Common stock issued to
deferred compensation |
|
|
|
|
|
|
|
|
|
trust, at cost |
(18,076 |
) |
|
(17,063 |
) |
|
(16,969 |
) |
|
(16,951 |
) |
|
(16,776 |
) |
Deferred compensation
trust |
18,076 |
|
|
17,063 |
|
|
16,969 |
|
|
16,951 |
|
|
16,776 |
|
Accumulated other
comprehensive income (loss) |
29,273 |
|
|
17,969 |
|
|
41,184 |
|
|
44,569 |
|
|
43,218 |
|
TOTAL SHAREHOLDERS’ EQUITY |
1,853,844 |
|
|
1,800,215 |
|
|
1,766,847 |
|
|
1,731,742 |
|
|
1,707,595 |
|
Noncontrolling interest |
16,012 |
|
|
16,091 |
|
|
16,981 |
|
|
16,961 |
|
|
13,948 |
|
TOTAL EQUITY |
1,869,856 |
|
|
1,816,306 |
|
|
1,783,828 |
|
|
1,748,703 |
|
|
1,721,543 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
15,803,835 |
|
|
$ |
15,079,396 |
|
|
$ |
14,626,444 |
|
|
$ |
14,795,417 |
|
|
$ |
15,580,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Consolidated Statements of Income - Five Quarter Trend
(unaudited) |
(dollars in thousands, except share data) |
|
|
|
|
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
100,614 |
|
|
$ |
101,396 |
|
|
$ |
104,182 |
|
|
$ |
102,869 |
|
|
$ |
102,139 |
|
Investment securities |
6,871 |
|
|
7,117 |
|
|
7,499 |
|
|
7,440 |
|
|
8,163 |
|
Interest-bearing deposits in financial institutions and federal
funds sold |
619 |
|
|
416 |
|
|
435 |
|
|
632 |
|
|
433 |
|
Mortgage loans held for sale |
3,711 |
|
|
3,361 |
|
|
3,867 |
|
|
4,587 |
|
|
3,811 |
|
Total interest income |
111,815 |
|
|
112,290 |
|
|
115,983 |
|
|
115,528 |
|
|
114,546 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
Deposits |
7,144 |
|
|
8,548 |
|
|
10,762 |
|
|
12,966 |
|
|
15,072 |
|
Advances from the FHLB |
274 |
|
|
497 |
|
|
1,404 |
|
|
1,901 |
|
|
2,595 |
|
Subordinated debt |
2,962 |
|
|
2,930 |
|
|
2,962 |
|
|
2,962 |
|
|
2,962 |
|
Repurchase agreements and other borrowings |
291 |
|
|
325 |
|
|
241 |
|
|
940 |
|
|
643 |
|
Total interest expense |
10,671 |
|
|
12,300 |
|
|
15,369 |
|
|
18,769 |
|
|
21,272 |
|
Net interest
income |
101,144 |
|
|
99,990 |
|
|
100,614 |
|
|
96,759 |
|
|
93,274 |
|
PROVISION FOR CREDIT
LOSSES |
(10,055 |
) |
|
(4,027 |
) |
|
1,617 |
|
|
31,598 |
|
|
26,945 |
|
Net interest income after provision for credit
losses |
111,199 |
|
|
104,017 |
|
|
98,997 |
|
|
65,161 |
|
|
66,329 |
|
NONINTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
Residential mortgage banking income, net |
25,524 |
|
|
37,412 |
|
|
37,504 |
|
|
37,531 |
|
|
29,715 |
|
Insurance commissions and other title fees and income, net |
18,331 |
|
|
16,325 |
|
|
13,868 |
|
|
17,468 |
|
|
17,612 |
|
Real estate brokerage and property management income, net |
10,984 |
|
|
17,934 |
|
|
9,229 |
|
|
11,301 |
|
|
10,781 |
|
Service charges on deposit accounts |
2,391 |
|
|
2,190 |
|
|
1,707 |
|
|
1,986 |
|
|
1,888 |
|
Credit card merchant fees, net |
1,667 |
|
|
1,302 |
|
|
1,377 |
|
|
1,506 |
|
|
1,109 |
|
BOLI |
1,541 |
|
|
1,519 |
|
|
1,990 |
|
|
1,605 |
|
|
1,584 |
|
Other income |
5,487 |
|
|
4,837 |
|
|
5,559 |
|
|
22,278 |
|
|
3,763 |
|
Net gain/(loss) on investment securities |
252 |
|
|
1,000 |
|
|
— |
|
|
1,701 |
|
|
2,930 |
|
Total noninterest income |
66,177 |
|
|
82,519 |
|
|
71,234 |
|
|
95,376 |
|
|
69,382 |
|
NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
61,365 |
|
|
58,435 |
|
|
61,475 |
|
|
61,408 |
|
|
56,926 |
|
Occupancy expense |
7,559 |
|
|
8,072 |
|
|
8,193 |
|
|
8,396 |
|
|
7,227 |
|
Furniture and equipment |
3,622 |
|
|
3,512 |
|
|
3,462 |
|
|
3,247 |
|
|
3,564 |
|
Amortization - intangibles |
2,719 |
|
|
2,723 |
|
|
2,797 |
|
|
2,851 |
|
|
2,901 |
|
Software expense |
4,494 |
|
|
4,194 |
|
|
4,066 |
|
|
3,572 |
|
|
3,492 |
|
Data processing |
3,414 |
|
|
3,239 |
|
|
2,363 |
|
|
3,113 |
|
|
2,718 |
|
Professional fees |
2,259 |
|
|
2,339 |
|
|
2,591 |
|
|
2,637 |
|
|
2,972 |
|
Advertising and marketing |
3,257 |
|
|
2,968 |
|
|
2,204 |
|
|
1,870 |
|
|
1,986 |
|
Other expenses |
16,705 |
|
|
11,844 |
|
|
18,781 |
|
|
14,887 |
|
|
9,239 |
|
Total noninterest expense |
105,394 |
|
|
97,326 |
|
|
105,932 |
|
|
101,981 |
|
|
91,025 |
|
Income before income
tax expense and noncontrolling interest |
71,982 |
|
|
89,210 |
|
|
64,299 |
|
|
58,556 |
|
|
44,686 |
|
Provision for income tax
expense |
13,980 |
|
|
16,579 |
|
|
10,408 |
|
|
7,841 |
|
|
7,464 |
|
Net
income |
58,002 |
|
|
72,631 |
|
|
53,891 |
|
|
50,715 |
|
|
37,222 |
|
Net income attributable to
noncontrolling interest |
(2,199 |
) |
|
(3,636 |
) |
|
(3,809 |
) |
|
(16,251 |
) |
|
(2,617 |
) |
Net income
attributable to TowneBank |
$ |
55,803 |
|
|
$ |
68,995 |
|
|
$ |
50,082 |
|
|
$ |
34,464 |
|
|
$ |
34,605 |
|
Per common share
information |
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.77 |
|
|
$ |
0.95 |
|
|
$ |
0.69 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Diluted earnings |
$ |
0.77 |
|
|
$ |
0.95 |
|
|
$ |
0.69 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Basic weighted average shares outstanding |
72,468,094 |
|
|
72,414,953 |
|
|
72,357,177 |
|
|
72,339,413 |
|
|
72,280,555 |
|
Diluted weighted average shares outstanding |
72,560,234 |
|
|
72,517,008 |
|
|
72,455,096 |
|
|
72,375,736 |
|
|
72,317,988 |
|
Cash dividends declared |
$ |
0.20 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK
|
Banking Segment Financial Information
(unaudited)
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Increase/(Decrease)
|
|
June 30,
|
|
March 31, |
|
June 30,
|
|
2021 over 2020
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
98,134 |
|
|
$ |
89,665 |
|
|
$ |
97,604 |
|
|
$ |
195,739 |
|
|
$ |
177,071 |
|
|
$ |
18,668 |
|
|
10.54 |
% |
Service charges on deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
2,391 |
|
|
1,888 |
|
|
2,190 |
|
|
4,580 |
|
|
4,328 |
|
|
252 |
|
|
5.82 |
% |
Credit card merchant fees |
1,667 |
|
|
1,109 |
|
|
1,302 |
|
|
2,969 |
|
|
2,287 |
|
|
682 |
|
|
29.82 |
% |
Other income |
5,404 |
|
|
3,888 |
|
|
4,970 |
|
|
10,375 |
|
|
10,950 |
|
|
(575
|
) |
|
(5.25 |
)% |
Subtotal |
9,462 |
|
|
6,885 |
|
|
8,462 |
|
|
17,924 |
|
|
17,565 |
|
|
359 |
|
|
2.04 |
% |
Net gain/(loss) on investment securities |
252 |
|
|
2,930 |
|
|
1,000 |
|
|
1,252 |
|
|
7,932 |
|
|
(6,680
|
) |
|
(84.22 |
)% |
Total noninterest income |
9,714 |
|
|
9,815 |
|
|
9,462 |
|
|
19,176 |
|
|
25,497 |
|
|
(6,321
|
) |
|
(24.79 |
)% |
Total revenue |
107,848 |
|
|
99,480 |
|
|
107,066 |
|
|
214,915 |
|
|
202,568 |
|
|
12,347 |
|
|
6.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
(9,532
|
) |
|
26,059 |
|
|
(3,401
|
) |
|
(12,932
|
) |
|
33,100 |
|
|
(46,032
|
) |
|
(139.07 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
35,776 |
|
|
35,209 |
|
|
31,861 |
|
|
67,637 |
|
|
68,434 |
|
|
(797
|
) |
|
(1.16 |
)% |
Occupancy expense |
5,012 |
|
|
4,812 |
|
|
5,546 |
|
|
10,558 |
|
|
9,728 |
|
|
830 |
|
|
8.53 |
% |
Furniture and equipment |
2,816 |
|
|
2,715 |
|
|
2,668 |
|
|
5,484 |
|
|
5,375 |
|
|
109 |
|
|
2.03 |
% |
Amortization of intangibles |
912 |
|
|
1,114 |
|
|
962 |
|
|
1,875 |
|
|
2,278 |
|
|
(403
|
) |
|
(17.69 |
)% |
Other expenses |
18,392 |
|
|
10,718 |
|
|
14,050 |
|
|
32,441 |
|
|
29,423 |
|
|
3,018 |
|
|
10.26 |
% |
Total expenses |
62,908 |
|
|
54,568 |
|
|
55,087 |
|
|
117,995 |
|
|
115,238 |
|
|
2,757 |
|
|
2.39 |
% |
Income before income tax,
corporate allocation and noncontrolling interest |
54,472 |
|
|
18,853 |
|
|
55,380 |
|
|
109,852 |
|
|
54,230 |
|
|
55,622 |
|
|
102.57 |
% |
Corporate allocation |
1,249 |
|
|
627 |
|
|
1,292 |
|
|
2,540 |
|
|
1,297 |
|
|
1,243 |
|
|
95.84 |
% |
Income before income tax
provision and noncontrolling interest |
55,721 |
|
|
19,480 |
|
|
56,672 |
|
|
112,392 |
|
|
55,527 |
|
|
56,865 |
|
|
102.41 |
% |
Provision for income tax
expense |
10,535 |
|
|
2,167 |
|
|
9,701 |
|
|
20,236 |
|
|
8,830 |
|
|
11,406 |
|
|
129.17 |
% |
Net income |
45,186 |
|
|
17,313 |
|
|
46,971 |
|
|
92,156 |
|
|
46,697 |
|
|
45,459 |
|
|
97.35 |
% |
Noncontrolling interest |
1 |
|
|
5 |
|
|
(5
|
) |
|
(3
|
) |
|
4 |
|
|
(7
|
) |
|
(175.00 |
)% |
Net income attributable to
TowneBank |
$ |
45,187 |
|
|
$ |
17,318 |
|
|
$ |
46,966 |
|
|
$ |
92,153 |
|
|
$ |
46,701 |
|
|
$ |
45,452 |
|
|
97.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP) |
57.62
|
% |
|
55.36
|
% |
|
51.03
|
% |
|
54.35
|
% |
|
58.04
|
% |
|
(3.69
|
)% |
|
(6.36 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK
|
Realty Segment Financial Information
(unaudited)
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Increase/(Decrease)
|
|
June 30,
|
|
March 31, |
|
June 30,
|
|
2021 over 2020
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage brokerage
income, net |
$ |
26,383 |
|
|
$ |
30,468 |
|
|
$ |
37,877 |
|
|
$ |
64,260 |
|
|
$ |
38,475 |
|
|
$ |
25,785 |
|
|
67.02 |
% |
Real estate brokerage income, net |
3,893 |
|
|
2,659 |
|
|
2,451 |
|
|
6,344 |
|
|
4,524 |
|
|
1,820 |
|
|
40.23 |
% |
Title insurance and settlement fees |
684 |
|
|
639 |
|
|
525 |
|
|
1,211 |
|
|
1,075 |
|
|
136 |
|
|
12.65 |
% |
Property management fees, net |
7,091 |
|
|
8,122 |
|
|
15,483 |
|
|
22,574 |
|
|
13,195 |
|
|
9,379 |
|
|
71.08 |
% |
Income from unconsolidated
subsidiary |
289 |
|
|
301 |
|
|
406 |
|
|
695 |
|
|
487 |
|
|
208 |
|
|
42.71 |
% |
Net interest and other income |
3,336 |
|
|
3,765 |
|
|
2,736 |
|
|
6,069 |
|
|
6,161 |
|
|
(92
|
) |
|
(1.49 |
)% |
Total revenue |
41,676 |
|
|
45,954 |
|
|
59,478 |
|
|
101,153 |
|
|
63,917 |
|
|
37,236 |
|
|
58.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
(523
|
) |
|
886 |
|
|
(626
|
) |
|
(1,150
|
) |
|
861 |
|
|
(2,011
|
) |
|
(233.57 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
16,018 |
|
|
13,059 |
|
|
16,847 |
|
|
32,865 |
|
|
26,352 |
|
|
6,513 |
|
|
24.72 |
% |
Occupancy expense |
1,935 |
|
|
1,763 |
|
|
1,871 |
|
|
3,806 |
|
|
3,690 |
|
|
116 |
|
|
3.14 |
% |
Furniture and equipment |
592 |
|
|
626 |
|
|
649 |
|
|
1,242 |
|
|
1,388 |
|
|
(146
|
) |
|
(10.52 |
)% |
Amortization of intangible assets |
590 |
|
|
658 |
|
|
590 |
|
|
1,180 |
|
|
1,315 |
|
|
(135
|
) |
|
(10.27 |
)% |
Other expenses |
10,442 |
|
|
8,270 |
|
|
9,229 |
|
|
19,669 |
|
|
15,137 |
|
|
4,532 |
|
|
29.94 |
% |
Total expenses |
29,577 |
|
|
24,376 |
|
|
29,186 |
|
|
58,762 |
|
|
47,882 |
|
|
10,880 |
|
|
22.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax,
corporate allocation and noncontrolling interest |
12,622 |
|
|
20,692 |
|
|
30,918 |
|
|
43,541 |
|
|
15,174 |
|
|
28,367 |
|
|
186.94 |
% |
Corporate allocation |
(1,000
|
) |
|
(370
|
) |
|
(1,000
|
) |
|
(2,000
|
) |
|
(763
|
) |
|
(1,237
|
) |
|
162.12 |
% |
Income before income tax
provision and noncontrolling interest |
11,622 |
|
|
20,322 |
|
|
29,918 |
|
|
41,541 |
|
|
14,411 |
|
|
27,130 |
|
|
188.26 |
% |
Provision for income tax
expense |
2,255 |
|
|
4,127 |
|
|
6,216 |
|
|
8,471 |
|
|
2,835 |
|
|
5,636 |
|
|
198.80 |
% |
Net income |
9,367 |
|
|
16,195 |
|
|
23,702 |
|
|
33,070 |
|
|
11,576 |
|
|
21,494 |
|
|
185.68 |
% |
Noncontrolling interest |
(2,200
|
) |
|
(2,415
|
) |
|
(3,631
|
) |
|
(5,832
|
) |
|
(3,206
|
) |
|
(2,626
|
) |
|
81.91 |
% |
Net income attributable to
TowneBank |
$ |
7,167 |
|
|
$ |
13,780 |
|
|
$ |
20,071 |
|
|
$ |
27,238 |
|
|
$ |
8,370 |
|
|
$ |
18,868 |
|
|
225.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP) |
69.55
|
% |
|
51.61
|
% |
|
48.08
|
% |
|
56.93
|
% |
|
72.86
|
% |
|
(15.93
|
)% |
|
(21.86 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK
|
Insurance Segment Financial Information
(unaudited)
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Increase/(Decrease)
|
|
June 30,
|
|
March 31, |
|
June 30,
|
|
2021 over 2020
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
Amount |
|
Percent |
Commission and fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and casualty |
$ |
14,941 |
|
|
$ |
13,926 |
|
|
$ |
14,189 |
|
|
$ |
29,129 |
|
|
$ |
26,712 |
|
|
$ |
2,417 |
|
|
9.05 |
% |
Employee benefits |
3,430 |
|
|
3,791 |
|
|
3,884 |
|
|
7,315 |
|
|
7,709 |
|
|
(394
|
) |
|
(5.11 |
)% |
Travel insurance |
— |
|
|
861 |
|
|
— |
|
|
— |
|
|
2,127 |
|
|
(2,127
|
) |
|
(100.00 |
)% |
Specialized benefit services |
163 |
|
|
157 |
|
|
167 |
|
|
329 |
|
|
325 |
|
|
4 |
|
|
1.23 |
% |
Total commissions and
fees |
18,534 |
|
|
18,735 |
|
|
18,240 |
|
|
36,773 |
|
|
36,873 |
|
|
(100
|
) |
|
(0.27 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingency and bonus
revenue |
3,323 |
|
|
2,009 |
|
|
1,759 |
|
|
5,082 |
|
|
4,031 |
|
|
1,051 |
|
|
26.07 |
% |
Other income |
43 |
|
|
127 |
|
|
73 |
|
|
117 |
|
|
208 |
|
|
(91
|
) |
|
(43.75 |
)% |
Total revenue |
21,900 |
|
|
20,871 |
|
|
20,072 |
|
|
41,972 |
|
|
41,112 |
|
|
860 |
|
|
2.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee commission
expense |
4,103 |
|
|
3,649 |
|
|
4,107 |
|
|
8,210 |
|
|
7,245 |
|
|
965 |
|
|
13.32 |
% |
Revenue, net of commission
expense |
17,797 |
|
|
17,222 |
|
|
15,965 |
|
|
33,762 |
|
|
33,867 |
|
|
(105
|
) |
|
(0.31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
9,571 |
|
|
8,658 |
|
|
9,727 |
|
|
19,299 |
|
|
18,007 |
|
|
1,292 |
|
|
7.17 |
% |
Occupancy expense |
612 |
|
|
652 |
|
|
655 |
|
|
1,266 |
|
|
1,311 |
|
|
(45
|
) |
|
(3.43 |
)% |
Furniture and equipment |
214 |
|
|
223 |
|
|
195 |
|
|
408 |
|
|
441 |
|
|
(33
|
) |
|
(7.48 |
)% |
Amortization of intangible
assets |
1,217 |
|
|
1,129 |
|
|
1,171 |
|
|
2,387 |
|
|
2,258 |
|
|
129 |
|
|
5.71 |
% |
Other expenses |
1,295 |
|
|
1,419 |
|
|
1,305 |
|
|
2,602 |
|
|
2,776 |
|
|
(174
|
) |
|
(6.27 |
)% |
Total operating expenses |
12,909 |
|
|
12,081 |
|
|
13,053 |
|
|
25,962 |
|
|
24,793 |
|
|
1,169 |
|
|
4.72 |
% |
Income before income tax,
corporate allocation and noncontrolling interest |
4,888 |
|
|
5,141 |
|
|
2,912 |
|
|
7,800 |
|
|
9,074 |
|
|
(1,274
|
) |
|
(14.04 |
)% |
Corporate allocation |
(249
|
) |
|
(257
|
) |
|
(292
|
) |
|
(540
|
) |
|
(534
|
) |
|
(6
|
) |
|
1.12 |
% |
Income before income tax
provision and noncontrolling interest |
4,639 |
|
|
4,884 |
|
|
2,620 |
|
|
7,260 |
|
|
8,540 |
|
|
(1,280
|
) |
|
(14.99 |
)% |
Provision for income tax
expense |
1,190 |
|
|
1,170 |
|
|
662 |
|
|
1,852 |
|
|
1,986 |
|
|
(134
|
) |
|
(6.75 |
)% |
Net income |
3,449 |
|
|
3,714 |
|
|
1,958 |
|
|
5,408 |
|
|
6,554 |
|
|
(1,146
|
) |
|
(17.49 |
)% |
Noncontrolling interest |
— |
|
|
(207
|
) |
|
— |
|
|
— |
|
|
(636
|
) |
|
636 |
|
|
(100.00 |
)% |
Net income attributable to
TowneBank |
$ |
3,449 |
|
|
$ |
3,507 |
|
|
$ |
1,958 |
|
|
$ |
5,408 |
|
|
$ |
5,918 |
|
|
(510
|
) |
|
(8.62 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
1,190 |
|
|
1,170 |
|
|
662 |
|
|
1,852 |
|
|
1,986 |
|
|
(134
|
) |
|
(6.75 |
)% |
Depreciation, amortization and
interest expense |
1,361 |
|
|
1,291 |
|
|
1,308 |
|
|
2,669 |
|
|
2,591 |
|
|
78 |
|
|
3.01 |
% |
EBITDA
(non-GAAP) |
$ |
6,000 |
|
|
$ |
5,968 |
|
|
$ |
3,928 |
|
|
$ |
9,929 |
|
|
$ |
10,495 |
|
|
$ |
(566 |
) |
|
(5.39 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP) |
65.70
|
% |
|
63.59
|
% |
|
74.43
|
% |
|
69.83
|
% |
|
66.54
|
% |
|
3.29
|
% |
|
4.94 |
% |
TOWNEBANK
|
Reconciliation of Non-GAAP Financial
Measures
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
1.48
|
% |
|
0.97
|
% |
|
1.92
|
% |
|
1.69
|
% |
|
0.93
|
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
0.11
|
% |
|
0.10
|
% |
|
0.13
|
% |
|
0.12
|
% |
|
0.11
|
% |
Return on average tangible
assets (non-GAAP) |
1.59
|
% |
|
1.07
|
% |
|
2.05
|
% |
|
1.81
|
% |
|
1.04
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity
(GAAP) |
12.21
|
% |
|
8.18
|
% |
|
15.56
|
% |
|
13.86
|
% |
|
7.28
|
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
5.17
|
% |
|
4.14
|
% |
|
6.63
|
% |
|
5.88
|
% |
|
3.85
|
% |
Return on average tangible
equity (non-GAAP) |
17.38
|
% |
|
12.32
|
% |
|
22.19
|
% |
|
19.74
|
% |
|
11.13
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common
equity (GAAP) |
12.31
|
% |
|
8.24
|
% |
|
15.70
|
% |
|
13.98
|
% |
|
7.34
|
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
5.26
|
% |
|
4.20
|
% |
|
6.75
|
% |
|
5.98
|
% |
|
3.91
|
% |
Return on average tangible
common equity
(non-GAAP) |
17.57
|
% |
|
12.44
|
% |
|
22.45
|
% |
|
19.96
|
% |
|
11.25
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value (GAAP) |
$ |
25.51 |
|
|
$ |
23.50 |
|
|
$ |
24.78 |
|
|
$ |
25.51 |
|
|
$ |
23.50 |
|
Impact of excluding average
goodwill and other
intangibles and amortization |
(6.81
|
) |
|
(6.82
|
) |
|
(6.84
|
) |
|
(6.81
|
) |
|
(6.82
|
) |
Tangible book value
(non-GAAP) |
$ |
18.70 |
|
|
$ |
16.68 |
|
|
$ |
17.94 |
|
|
$ |
18.70 |
|
|
$ |
16.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
62.99
|
% |
|
55.96
|
% |
|
53.33
|
% |
|
57.95
|
% |
|
62.56
|
% |
Impact of exclusions |
(1.53
|
)% |
|
(0.79
|
)% |
|
(1.22
|
)% |
|
(1.36
|
)% |
|
(0.30
|
)% |
Efficiency ratio
(non-GAAP) |
61.46
|
% |
|
55.17
|
% |
|
52.11
|
% |
|
56.59
|
% |
|
62.26
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets (GAAP) |
$ |
15,143,888 |
|
|
$ |
14,409,468 |
|
|
$ |
14,592,416 |
|
|
$ |
14,869,675 |
|
|
$ |
13,229,396 |
|
Less: average goodwill and
intangible assets |
496,059 |
|
|
497,077 |
|
|
497,446 |
|
|
496,748 |
|
|
498,600 |
|
Average tangible assets
(non-GAAP) |
$ |
14,647,829 |
|
|
$ |
13,912,391 |
|
|
$ |
14,094,970 |
|
|
$ |
14,372,927 |
|
|
$ |
12,730,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity (GAAP) |
$ |
1,833,592 |
|
|
$ |
1,701,777 |
|
|
$ |
1,797,767 |
|
|
$ |
1,815,778 |
|
|
$ |
1,683,742 |
|
Less: average goodwill and
intangible assets |
496,059 |
|
|
497,077 |
|
|
497,446 |
|
|
496,748 |
|
|
498,600 |
|
Average tangible equity
(non-GAAP) |
$ |
1,337,533 |
|
|
$ |
1,204,700 |
|
|
$ |
1,300,321 |
|
|
$ |
1,319,030 |
|
|
$ |
1,185,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity
(GAAP) |
$ |
1,818,664 |
|
|
$ |
1,689,603 |
|
|
$ |
1,782,795 |
|
|
$ |
1,800,829 |
|
|
$ |
1,671,640 |
|
Less: average goodwill and
intangible assets |
496,059 |
|
|
497,077 |
|
|
497,446 |
|
|
496,748 |
|
|
498,600 |
|
Average tangible common equity
(non-GAAP) |
$ |
1,322,605 |
|
|
$ |
1,192,526 |
|
|
$ |
1,285,349 |
|
|
$ |
1,304,081 |
|
|
$ |
1,173,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
55,803 |
|
|
$ |
34,605 |
|
|
68,995 |
|
|
124,799 |
|
|
60,989 |
|
Amortization of Intangibles,
net of tax |
2,148 |
|
|
2,292 |
|
|
2,151 |
|
|
4,299 |
|
|
4,622 |
|
Tangible net income
(non-GAAP) |
$ |
57,951 |
|
|
$ |
36,897 |
|
|
$ |
71,146 |
|
|
$ |
129,098 |
|
|
$ |
65,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
55,803 |
|
|
$ |
34,605 |
|
|
$ |
68,995 |
|
|
$ |
124,799 |
|
|
$ |
60,989 |
|
Provision for credit
losses |
(10,055
|
) |
|
26,945 |
|
|
(4,027
|
) |
|
(14,082
|
) |
|
33,961 |
|
Provision for income tax |
13,980 |
|
|
7,464 |
|
|
16,579 |
|
|
30,559 |
|
|
13,651 |
|
Pre-provision, pre-tax net
revenues (non-GAAP) |
$ |
59,728 |
|
|
$ |
69,014 |
|
|
$ |
81,547 |
|
|
$ |
141,276 |
|
|
$ |
108,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (GAAP) |
$ |
167,321 |
|
|
$ |
162,656 |
|
|
$ |
182,509 |
|
|
$ |
349,830 |
|
|
$ |
300,352 |
|
Net (gain)/loss on investment
securities |
(252
|
) |
|
(2,930
|
) |
|
(1,000
|
) |
|
(1,252
|
) |
|
(7,932
|
) |
Other nonrecurring (income)
loss |
— |
|
|
— |
|
|
30 |
|
|
30 |
|
|
— |
|
Total Revenue for efficiency
calculation (non-GAAP) |
$ |
167,069 |
|
|
$ |
159,726 |
|
|
$ |
181,539 |
|
|
$ |
348,608 |
|
|
$ |
292,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP) |
$ |
105,394 |
|
|
$ |
91,025 |
|
|
$ |
97,326 |
|
|
$ |
202,719 |
|
|
$ |
187,913 |
|
Less: Amortization of
intangibles |
2,719 |
|
|
2,901 |
|
|
2,723 |
|
|
5,442 |
|
|
5,851 |
|
Noninterest expense net of
amortization (non-GAAP) |
$ |
102,675 |
|
|
$ |
88,124 |
|
|
$ |
94,603 |
|
|
$ |
197,277 |
|
|
$ |
182,062 |
|
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