Yadkin Financial Corporation (NYSE:YDKN) ("Yadkin"
or the "Company"), the parent company of Yadkin Bank, today
announced financial results for the first quarter ended
March 31, 2016.
"We are pleased to report record net operating
earnings in the first quarter of 2016, the combined result of the
recent acquisition of NewBridge Bancorp, and continued strong
organic growth," announced Scott Custer, Yadkin's CEO. "The
NewBridge merger enables us to reach customers in every major
market in North Carolina, providing us now with a particularly
strong presence in the Triad area." Commenting on the merger
integration, Mr. Custer stated, "We have already made significant
progress towards consolidating the operating platforms based on our
merger plan. Additionally, we believe that successful execution of
the systems integration in September 2016 will allow us to fully
realize the cost savings and operational leverage that the
NewBridge merger provides."
First Quarter 2016 Performance
Highlights
- On March 1, 2016, the Company completed its previously
announced acquisition of NewBridge Bancorp and currently operates
as the largest community bank based in North Carolina with $7.4
billion in total assets, $5.3 billion in deposits, and $985 million
in shareholders' equity.
- Net income available to common shareholders totaled $7.8
million, or $0.20 per diluted share, in Q1 2016 compared to $0.37
per diluted share in Q4 2015 and $0.30 per diluted share in Q1
2015.
- Net operating earnings available to common shareholders, which
excludes certain non-operating income and expenses, improved to
$14.8 million, or $0.39 per diluted share, in Q1 2016 from $12.6
million, or $0.40 per diluted share, in Q4 2015 and $10.3 million,
or $0.33 per diluted share, in Q1 2015.
- Annualized net operating return on average tangible common
equity was 13.14 percent in Q1 2016 compared to 13.14 percent in Q4
2015 and 11.94 in Q1 2015. Annualized net operating return on
average assets was 1.09 percent in Q1 2016 compared to 1.14 percent
in Q4 2015 and 1.04 percent in Q1 2015.
- Operating efficiency, the ratio of operating expenses to total
operating revenues, was 58.1 percent in Q1 2016 compared to 57.5
percent in Q4 2015 and 62.1 percent in Q1 2015.
- Asset quality improved following the acquisition of NewBridge
Bancorp, as nonperforming loans to total loans declined to 0.83
percent as of March 31, 2016 from 1.06 percent as of December
31, 2015 and 1.29 percent as of March 31, 2015.
Acquisition of NewBridge
Bancorp
On March 1, 2016, the Company completed its
acquisition of NewBridge Bancorp (“NewBridge”), pursuant to an
Agreement and Plan of Merger, dated October 12, 2015 (the
“NewBridge Merger Agreement”). Pursuant to the NewBridge Merger
Agreement, each share of NewBridge Class A common stock and Class B
common stock was converted into the right to receive 0.50 shares of
the common stock of the Company. Based on the Company's stock price
at the closing date of the NewBridge Merger, purchase consideration
totaled $431.3 million. Immediately following the merger of
NewBridge into Yadkin, NewBridge Bank, a North Carolina-chartered
commercial bank, merged with and into Yadkin Bank, with Yadkin Bank
surviving such merger.
The NewBridge Merger was accounted for under the
acquisition method of accounting with Yadkin as the legal and
accounting acquirer and NewBridge as the legal and accounting
acquiree. The assets and liabilities of NewBridge have been
recorded at their estimated fair values and added to those of
Yadkin for periods following the merger date. The Company may
refine its valuations of acquired NewBridge assets and liabilities
for up to one year following the merger date.
The Company is currently the fourth largest bank
headquartered in North Carolina and ranks first by North Carolina
deposit market share among community banks. The Company now
operates 110 full-service banking locations in its North Carolina
and South Carolina banking network and has a significant presence
in all major North Carolina markets, including Charlotte, the
Raleigh-Durham-Chapel Hill Triangle, the Piedmont Triad, and
Wilmington. The Company plans to complete systems integration in
September 2016. The NewBridge Merger added $2.1 billion in loans,
$2.0 billion in deposits, and resulted in significant changes
across most balance sheet categories. Additionally, since the
merger was effective on March 1, 2016, the Company's results of
operations for the first quarter reflect the impact of NewBridge
for only one month. As a result, the Company's first quarter 2016
financial results may not be comparable to financial results in
prior periods.
Results of Operations and Asset
Quality
1Q 2016 vs. 4Q 2015
Net interest income totaled $48.0 million in the
first quarter of 2016, which was a significant increase from $41.3
million in the fourth quarter of 2015. This increase was due to the
impact of earning assets acquired in the NewBridge Merger and
organic loan growth. Net interest margin decreased from 4.29
percent in the fourth quarter of 2015 to 4.05 percent in the first
quarter of 2016, primarily due to lower-yielding acquired NewBridge
loans. Core net interest margin, which excludes the impact of
accretion income on net interest income, was 3.70 percent in the
first quarter of 2016, compared to 3.87 percent in the fourth
quarter of 2015.
Net accretion income on acquired loans totaled $3.6
million in the first quarter of 2016, which consisted of $1.1
million of net accretion on purchased credit-impaired ("PCI") loans
and $2.4 million of accretion income on purchased non-impaired
loans. Net accretion income on acquired loans in the fourth quarter
of 2015 totaled $3.0 million, which included $791 thousand of net
accretion on PCI loans and $2.2 million of net accretion income on
purchased non-impaired loans. Net accretion income on purchased
non-impaired loans included $767 thousand of accelerated accretion
due to principal prepayments in the first quarter of 2016 compared
to $861 thousand in the fourth quarter of 2015.
Provision for loan losses was $1.9 million in the
first quarter of 2016 compared to $2.7 million in the fourth
quarter of 2015. The table below summarizes changes in the
allowance for loan losses ("ALLL") on a linked-quarter basis for
the quarters presented.
| (Dollars in
thousands) |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
| |
|
|
|
|
|
|
| Q1
2016 |
|
|
|
|
|
|
| Balance at January 1,
2016 |
|
$ |
8,447 |
|
|
$ |
1,322 |
|
|
$ |
9,769 |
|
| Net charge-offs |
|
(1,413 |
) |
|
— |
|
|
(1,413 |
) |
| Provision for loan
losses |
|
2,419 |
|
|
(544 |
) |
|
1,875 |
|
| Balance at March 31,
2016 |
|
$ |
9,453 |
|
|
$ |
778 |
|
|
$ |
10,231 |
|
| |
|
|
|
|
|
|
| Q4
2015 |
|
|
|
|
|
|
| Balance at October 1,
2015 |
|
$ |
7,602 |
|
|
$ |
1,398 |
|
|
$ |
9,000 |
|
| Net charge-offs |
|
(1,944 |
) |
|
— |
|
|
(1,944 |
) |
| Provision for loan
losses |
|
2,789 |
|
|
(76 |
) |
|
2,713 |
|
| Balance at December 31,
2015 |
|
$ |
8,447 |
|
|
$ |
1,322 |
|
|
$ |
9,769 |
|
The ALLL was $10.2 million, or 0.20 percent of
total loans as of March 31, 2016, compared to $9.8 million, or
0.32 percent of total loans, as of December 31, 2015. The decline
in ALLL to total loans was primarily due to acquisition accounting.
Upon completion of the NewBridge Merger, NewBridge's historical
ALLL was eliminated, and the acquired loan portfolio was adjusted
to estimated fair value. Adjusted ALLL, which is a non-GAAP metric
that includes ALLL as well as net acquisition accounting fair value
adjustments for acquired loans, declined from 1.62 percent of total
loans as of December 31, 2015 to 1.50 percent as of March 31,
2016. The decline in the adjusted ALLL ratio was partially due to
lower fair value adjustments on acquired NewBridge loans and was
partially due to improvements in historical loss rates used in the
Company's ALLL model.
The provision for loan losses on non-PCI loans
decreased by $370 thousand in the first quarter of 2016, primarily
due to lower net charge-offs, which totaled $1.4 million in the
first quarter of 2016 and $1.9 million in the fourth quarter of
2015. The annualized net charge-off rate was 0.15 percent of
average loans the first quarter of 2016, a decline from 0.25
percent in the fourth quarter of 2015. The provision credit
recorded on PCI loans increased by $468 thousand on a
linked-quarter basis as a result of improving cash flows on the
Company's PCI loan pools.
Nonperforming loans, which include nonaccrual
loans, loans past due 90 days or more and still accruing, as a
percentage of total loans decreased to 0.83 percent as of
March 31, 2016 from 1.06 percent as of December 31, 2015.
Total nonperforming assets (which include nonperforming loans and
foreclosed assets) as a percentage of total assets similarly
decreased to 0.83 percent as of March 31, 2016 from 1.07
percent as of December 31, 2015. The improvement in the Company's
nonperforming asset ratio was primarily due to lower nonperforming
asset levels in the acquired NewBridge loan portfolio.
Non-interest income totaled $11.4 million in the
first quarter of 2016, an increase from $10.0 million in the fourth
quarter of 2015. Service charges and fees on deposit accounts
increased by $776 thousand primarily due to the addition of
acquired NewBridge deposit accounts. Government-guaranteed, small
business lending income, which includes gains on sales of the
guaranteed portion of certain U.S. Small Business Administration
("SBA") loans as well as servicing fees on previously sold SBA
loans, contributed $3.1 million to non-interest income in the first
quarter of 2016.
Non-interest expense totaled $44.8 million in the
first quarter of 2016, an increase from $30.6 million in the fourth
quarter of 2015. The linked-quarter increase in expenses was
primarily due to a $9.5 million increase in merger and conversion
costs, which includes professional fees, personnel costs, and other
expenses required to close the NewBridge Merger as well as costs to
convert data processing, technology, signage, and branch network to
the Company's integrated platform. Operating non-interest expense,
which excludes merger and conversion costs and restructuring
charges, increased by $5.0 million on a linked-quarter basis.
Salaries and employee benefits, occupancy and equipment, data
processing, and other non-interest expense categories all increased
as a result of the NewBridge Merger, which added employees, branch
and other facilities, and equipment to the Company's expense
base.
Operating efficiency ratio, which excludes merger
and conversion costs and restructuring charges, was 58.1 percent in
the first quarter of 2016 and 57.5 percent in the fourth quarter of
2015. The Company has made significant progress towards integrating
NewBridge onto its integrated platform based upon the merger plan.
Additionally, execution of the branch consolidation plan (12 branch
closures scheduled in Q2 and Q3 2016), closures of two significant
NewBridge non-branch locations (scheduled for Q3 2016), and
completion of the systems integration (scheduled for September
2016) should enable the Company to fully realize the cost savings
and operational leverage that the NewBridge Merger provides.
Management believes the majority of projected cost savings will be
achieved by the end of Q3 2016 with remaining savings to be
realized in Q4 2016 and Q1 2017.
Income tax expense totaled $4.9 million in the
first quarter of 2016 compared to $6.2 million in the fourth
quarter of 2015. The Company's effective tax rate increased to 38.7
percent in the first quarter of 2016 from 34.3 percent in the
fourth quarter of 2015, primarily due to the impact of
non-deductible merger expenses.
Dividend Information
On April 20, 2016, Yadkin's Board of Directors
declared a regular quarterly cash dividend of $0.10 per share on
its outstanding shares of unrestricted common stock, payable on
May 19, 2016 to shareholders of record on May 12,
2016.
Yadkin Financial Corporation is the bank holding
company for Yadkin Bank, a full-service state-chartered community
bank providing services in 110 branches across North Carolina and
upstate South Carolina. Serving over 130,000 customers, the
Company has assets of $7.4 billion. The Bank’s primary
business is providing banking, mortgage, investment, and insurance
services to consumers and businesses across the Carolinas. The
Bank provides SBA lending services through its Government
Guaranteed Lending division, headquartered in Charlotte, NC, and
mortgage lending services through Yadkin Mortgage, headquartered in
Greensboro, NC. Yadkin Financial Corporation’s website is
www.yadkinbank.com. Yadkin Financial Corporation's common stock is
traded on the NYSE under the symbol YDKN.
Conference Call
Yadkin Financial Corporation will host a conference
call at 10:00 a.m. Eastern Time on April 21, 2016, to discuss
the Company's financial results. The call may be accessed by
dialing (800) 685-3601 and requesting the Yadkin Financial
Corporation First Quarter 2016 Conference Call. Listeners should
dial in 10-15 minutes prior to the start of the call.
A webcast of the conference call will be available
online at www.yadkinbank.com and following the links to About
Us, Investor Relations. A replay of the call will be available
through May 23, 2016, by dialing (800) 633-8284 or (402)
977-9140 and entering reservation number 21809422.
Non-GAAP Financial Measures
Statements included in this press release include
non-GAAP financial measures and should be read along with the
accompanying tables, which provide a reconciliation of non-GAAP
financial measures to GAAP financial measures. Yadkin management
uses non-GAAP financial measures, including: (i) net operating
earnings available to common shareholders; (ii) pre-tax,
pre-provision operating earnings; (iii) operating non-interest
expense, (iv) operating efficiency ratio, (v) adjusted allowance
for loan losses to loans; and (vi) tangible common equity, in its
analysis of the Company's performance. Net operating earnings
available to common shareholders excludes the following from net
income available to common shareholders: securities gains and
losses, a one-time branch sale gain, merger and conversion costs,
restructuring charges, income tax expense from the change in future
state tax rates, and the income tax effect of adjustments. Pre-tax,
pre-provision operating earnings excludes the following from net
income: provision for loan losses, income tax expense, securities
gains and losses, a one-time branch sale gain, merger and
conversion costs, and restructuring charges. Operating non-interest
expense excludes merger and conversion costs and restructuring
charges from non-interest expense. The operating efficiency ratio
excludes a one-time branch sale gain, securities gains and losses,
merger and conversion costs, and restructuring charges from the
efficiency ratio. Adjusted allowance for loan losses adds net
acquisition accounting fair value discounts to the allowance for
loan losses. Tangible common equity excludes preferred stock as
well as goodwill and other intangible assets, net, from
shareholders' equity.
Management believes that non-GAAP financial
measures provide additional useful information that allows readers
to evaluate the ongoing performance of the Company and provide
meaningful comparisons to its peers. Non-GAAP financial
measures should not be considered as an alternative to any measure
of performance or financial condition as promulgated under GAAP,
and investors should consider Yadkin performance and financial
condition as reported under GAAP and all other relevant information
when assessing the performance or financial condition of the
Company. Non-GAAP financial measures have limitations as
analytical tools, and investors should not consider them in
isolation or as a substitute for analysis of the results or
financial condition as reported under GAAP.
Forward-Looking Statements
Information in this press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve
risks and uncertainties that could cause actual results to differ
materially, including without limitation, reduced earnings due to
larger than expected credit losses in the sectors of our loan
portfolio secured by real estate due to economic factors, including
declining real estate values, increasing interest rates, increasing
unemployment, or changes in payment behavior or other factors;
reduced earnings due to larger credit losses because our loans are
concentrated by loan type, industry segment, borrower type, or
location of the borrower or collateral; the rate of delinquencies
and amount of loans charged-off; the adequacy of the level of our
allowance for loan losses and the amount of loan loss provisions
required in future periods; costs or difficulties related to the
integration of the banks we acquired or may acquire may be greater
than expected; our ability to achieve the estimated synergies from
the NewBridge Acquisition and once integrated, the effects of such
business combination on our future financial condition, operating
results, strategy and plans; our ability to integrate NewBridge on
our schedule and budget; results of examinations by our regulatory
authorities, including the possibility that the regulatory
authorities may, among other things, require us to increase our
allowance for loan losses or write down assets; the amount of our
loan portfolio collateralized by real estate; our ability to
maintain appropriate levels of capital; adverse changes in asset
quality and resulting credit risk-related losses and expenses;
increased funding costs due to market illiquidity, competition for
funding, and increased regulatory requirements with regard to
funding; significant increases in competitive pressure in the
banking and financial services industries; changes in political
conditions or the legislative or regulatory environment, including
the effect of future financial reform legislation on the banking
industry; general economic conditions, either nationally or
regionally and especially in our primary service area, becoming
less favorable than expected resulting in, among other things, a
deterioration in credit quality; our ability to retain our existing
customers, including our deposit relationships; changes occurring
in business conditions and inflation; changes in monetary and tax
policies; ability of borrowers to repay loans; risks associated
with a failure in or breach of our operational or security systems
or infrastructure, or those of our third party vendors and other
service providers or other third parties, including cyber attacks,
which could disrupt our businesses, result in the disclosure or
misuse of confidential or proprietary information, damage our
reputation, increase our costs and cause losses; changes in
accounting principles, policies or guidelines; changes in the
assessment of whether a deferred tax valuation allowance is
necessary; our reliance on secondary liquidity sources such as
Federal Home Loan Bank advances, sales of securities and loans,
federal funds lines of credit from correspondent banks and
out-of-market time deposits; loss of consumer confidence and
economic disruptions resulting from terrorist activities or
military actions; and changes in the securities markets. Additional
factors that could cause actual results to differ materially are
discussed in the Company’s filings with the Securities and Exchange
Commission, including without limitation its Annual Report on Form
10-K, its Quarterly Reports on Form 10-Q, and its Current Reports
on Form 8-K. The forward-looking statements in this press release
speak only as of the date of the press release, and the Company
does not assume any obligation to update such forward-looking
statements.
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
| |
Three months ended |
| (Dollars in thousands, except per share
data) |
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
| Interest
income |
|
|
|
|
|
|
|
|
|
|
| Loans |
$ |
47,971 |
|
|
$ |
41,025 |
|
|
$ |
40,300 |
|
|
$ |
40,404 |
|
|
$ |
39,796 |
|
| Investment
securities |
6,113 |
|
|
5,243 |
|
|
3,957 |
|
|
3,786 |
|
|
3,996 |
|
| Federal funds sold and
interest-earning deposits |
103 |
|
|
54 |
|
|
47 |
|
|
45 |
|
|
50 |
|
| Total interest income |
54,187 |
|
|
46,322 |
|
|
44,304 |
|
|
44,235 |
|
|
43,842 |
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
| Deposits |
3,467 |
|
|
2,950 |
|
|
3,097 |
|
|
3,073 |
|
|
2,889 |
|
| Short-term
borrowings |
808 |
|
|
489 |
|
|
437 |
|
|
331 |
|
|
289 |
|
| Long-term debt |
1,867 |
|
|
1,541 |
|
|
1,465 |
|
|
1,504 |
|
|
1,488 |
|
| Total interest expense |
6,142 |
|
|
4,980 |
|
|
4,999 |
|
|
4,908 |
|
|
4,666 |
|
| Net interest income |
48,045 |
|
|
41,342 |
|
|
39,305 |
|
|
39,327 |
|
|
39,176 |
|
| Provision for loan
losses |
1,881 |
|
|
2,714 |
|
|
1,576 |
|
|
994 |
|
|
961 |
|
| Net interest income after provision
for loan losses |
46,164 |
|
|
38,628 |
|
|
37,729 |
|
|
38,333 |
|
|
38,215 |
|
| Non-interest
income |
|
|
|
|
|
|
|
|
|
| Service charges and
fees |
4,212 |
|
|
3,436 |
|
|
3,566 |
|
|
3,495 |
|
|
3,253 |
|
| Government-guaranteed
lending |
3,072 |
|
|
3,170 |
|
|
3,009 |
|
|
3,677 |
|
|
2,873 |
|
| Mortgage banking |
1,623 |
|
|
1,571 |
|
|
1,731 |
|
|
1,633 |
|
|
1,322 |
|
| Bank-owned life
insurance |
552 |
|
|
466 |
|
|
470 |
|
|
465 |
|
|
472 |
|
| Gain (loss) on sales of
available for sale securities |
130 |
|
|
(85 |
) |
|
— |
|
|
84 |
|
|
1 |
|
| Gain on sale of
branches |
— |
|
|
88 |
|
|
— |
|
|
— |
|
|
— |
|
| Other |
1,765 |
|
|
1,320 |
|
|
2,022 |
|
|
1,446 |
|
|
918 |
|
| Total non-interest income |
11,354 |
|
|
9,966 |
|
|
10,798 |
|
|
10,800 |
|
|
8,839 |
|
| Non-interest
expense |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
18,040 |
|
|
15,777 |
|
|
14,528 |
|
|
15,391 |
|
|
15,202 |
|
| Occupancy and
equipment |
5,535 |
|
|
4,722 |
|
|
4,641 |
|
|
4,637 |
|
|
4,799 |
|
| Data processing |
2,140 |
|
|
1,931 |
|
|
1,851 |
|
|
1,929 |
|
|
1,888 |
|
| Professional
services |
1,108 |
|
|
861 |
|
|
1,196 |
|
|
1,407 |
|
|
1,092 |
|
| FDIC insurance
premiums |
821 |
|
|
674 |
|
|
732 |
|
|
772 |
|
|
714 |
|
| Foreclosed asset
expenses |
311 |
|
|
366 |
|
|
277 |
|
|
445 |
|
|
188 |
|
| Loan, collection, and
repossession expense |
1,133 |
|
|
926 |
|
|
931 |
|
|
850 |
|
|
936 |
|
| Merger and conversion
costs |
10,335 |
|
|
803 |
|
|
104 |
|
|
(25 |
) |
|
220 |
|
| Restructuring
charges |
21 |
|
|
282 |
|
|
50 |
|
|
2,294 |
|
|
907 |
|
| Amortization of other
intangible assets |
1,053 |
|
|
745 |
|
|
761 |
|
|
777 |
|
|
815 |
|
| Other |
4,301 |
|
|
3,477 |
|
|
3,777 |
|
|
3,839 |
|
|
4,197 |
|
| Total non-interest expense |
44,798 |
|
|
30,564 |
|
|
28,848 |
|
|
32,316 |
|
|
30,958 |
|
| Income before income taxes |
12,720 |
|
|
18,030 |
|
|
19,679 |
|
|
16,817 |
|
|
16,096 |
|
| Income tax expense |
4,920 |
|
|
6,182 |
|
|
7,891 |
|
|
6,076 |
|
|
5,846 |
|
| Net income |
7,800 |
|
|
11,848 |
|
|
11,788 |
|
|
10,741 |
|
|
10,250 |
|
| Dividends on preferred
stock |
— |
|
|
— |
|
|
— |
|
|
183 |
|
|
639 |
|
| Net income available to
common shareholders |
$ |
7,800 |
|
|
$ |
11,848 |
|
|
$ |
11,788 |
|
|
$ |
10,558 |
|
|
$ |
9,611 |
|
| |
|
|
|
|
|
|
|
|
|
| NET INCOME PER COMMON
SHARE |
|
|
|
|
|
|
|
|
|
| Basic |
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
| Diluted |
0.20 |
|
|
0.37 |
|
|
0.37 |
|
|
0.33 |
|
|
0.30 |
|
| |
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
| Basic |
38,102,926 |
|
|
31,617,993 |
|
|
31,608,909 |
|
|
31,609,021 |
|
|
31,606,909 |
|
| Diluted |
38,194,964 |
|
|
31,815,333 |
|
|
31,686,150 |
|
|
31,610,620 |
|
|
31,608,928 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED PERFORMANCE RATIOS AND FINANCIAL DATA
| |
As of and for the three months ended |
| (Dollars in thousands, except per share
data) |
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
| |
|
|
|
|
|
|
|
|
|
|
| Selected
Performance Ratios (Annualized) |
|
|
|
|
|
|
|
|
|
| Return on average assets |
0.57 |
% |
|
1.07 |
% |
|
1.08 |
% |
|
1.01 |
% |
|
0.98 |
% |
| Net operating return on average
assets (Non-GAAP) |
1.09 |
% |
|
1.14 |
% |
|
1.15 |
% |
|
1.14 |
% |
|
1.04 |
% |
| Return on average shareholders'
equity |
4.42 |
% |
|
8.38 |
% |
|
8.45 |
% |
|
7.71 |
% |
|
7.37 |
% |
| Net operating return on average
shareholders' equity (Non-GAAP) |
8.39 |
% |
|
8.92 |
% |
|
8.98 |
% |
|
8.68 |
% |
|
7.87 |
% |
| Return on average tangible common
equity |
6.63 |
% |
|
11.90 |
% |
|
12.09 |
% |
|
11.20 |
% |
|
10.61 |
% |
| Net operating return on average
tangible common equity (Non-GAAP) |
13.14 |
% |
|
13.14 |
% |
|
13.34 |
% |
|
13.13 |
% |
|
11.94 |
% |
| Yield on earning assets, tax
equivalent |
4.57 |
% |
|
4.81 |
% |
|
4.72 |
% |
|
4.83 |
% |
|
4.84 |
% |
| Cost of interest-bearing
liabilities |
0.64 |
% |
|
0.65 |
% |
|
0.66 |
% |
|
0.65 |
% |
|
0.63 |
% |
| Net interest margin, tax
equivalent |
4.05 |
% |
|
4.29 |
% |
|
4.19 |
% |
|
4.29 |
% |
|
4.33 |
% |
| Efficiency ratio |
75.42 |
% |
|
59.57 |
% |
|
57.58 |
% |
|
64.47 |
% |
|
64.48 |
% |
| Operating efficiency ratio
(Non-GAAP) |
58.11 |
% |
|
57.46 |
% |
|
57.27 |
% |
|
60.04 |
% |
|
62.13 |
% |
| |
|
|
|
|
|
|
|
|
|
| Per Common
Share |
|
|
|
|
|
|
|
|
|
| Net income, basic |
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.37 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
| Net income, diluted |
0.20 |
|
|
0.37 |
|
|
0.37 |
|
|
0.33 |
|
|
0.30 |
|
| Net operating earnings, basic
(Non-GAAP) |
0.39 |
|
|
0.40 |
|
|
0.40 |
|
|
0.38 |
|
|
0.33 |
|
| Net operating earnings, diluted
(Non-GAAP) |
0.39 |
|
|
0.40 |
|
|
0.40 |
|
|
0.38 |
|
|
0.33 |
|
| Book value |
19.13 |
|
|
17.73 |
|
|
17.56 |
|
|
17.28 |
|
|
17.07 |
|
| Tangible book value (Non-GAAP) |
11.94 |
|
|
12.51 |
|
|
12.31 |
|
|
12.01 |
|
|
11.75 |
|
| Common shares outstanding |
|
51,480,284 |
|
|
|
31,726,767 |
|
|
|
31,711,901 |
|
|
|
31,712,021 |
|
|
|
31,609,021 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset Quality
Data and Ratios |
|
|
|
|
|
|
|
|
|
| Nonperforming loans: |
|
|
|
|
|
|
|
|
|
| Nonaccrual loans |
$ |
27,981 |
|
|
$ |
21,194 |
|
|
$ |
27,830 |
|
|
$ |
25,692 |
|
|
$ |
26,841 |
|
| Accruing loans past due 90 days or
more |
14,992 |
|
|
11,337 |
|
|
9,303 |
|
|
6,800 |
|
|
10,789 |
|
| Foreclosed assets |
18,435 |
|
|
15,346 |
|
|
11,793 |
|
|
13,547 |
|
|
12,427 |
|
| Total nonperforming assets |
$ |
61,408 |
|
|
$ |
47,877 |
|
|
$ |
48,926 |
|
|
$ |
46,039 |
|
|
$ |
50,057 |
|
| Restructured loans not included in
nonperforming assets |
$ |
5,147 |
|
|
$ |
5,609 |
|
|
$ |
2,564 |
|
|
$ |
2,333 |
|
|
$ |
2,043 |
|
| Net charge-offs to average loans
(annualized) |
0.15 |
% |
|
0.25 |
% |
|
0.12 |
% |
|
0.12 |
% |
|
0.07 |
% |
| Allowance for loan losses to
loans |
0.20 |
% |
|
0.32 |
% |
|
0.30 |
% |
|
0.28 |
% |
|
0.28 |
% |
| Adjusted allowance for loan losses
to loans |
1.50 |
% |
|
1.62 |
% |
|
1.75 |
% |
|
1.88 |
% |
|
2.04 |
% |
| Nonperforming loans to loans |
0.83 |
% |
|
1.06 |
% |
|
1.25 |
% |
|
1.10 |
% |
|
1.29 |
% |
| Nonperforming assets to total
assets |
0.83 |
% |
|
1.07 |
% |
|
1.12 |
% |
|
1.06 |
% |
|
1.17 |
% |
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios |
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets |
8.72 |
% |
|
9.21 |
% |
|
9.30 |
% |
|
9.16 |
% |
|
9.75 |
% |
| Tangible common equity to tangible
assets |
8.72 |
% |
|
9.21 |
% |
|
9.30 |
% |
|
9.16 |
% |
|
9.06 |
% |
| Yadkin Financial Corporation1: |
|
|
|
|
|
|
|
|
|
| Tier 1 leverage |
12.32 |
% |
|
9.42 |
% |
|
9.40 |
% |
|
9.22 |
% |
|
9.60 |
% |
| Common equity Tier 1 |
9.87 |
% |
|
10.55 |
% |
|
10.50 |
% |
|
10.43 |
% |
|
10.14 |
% |
| Tier 1 risk-based capital |
10.24 |
% |
|
10.59 |
% |
|
10.55 |
% |
|
10.43 |
% |
|
10.82 |
% |
| Total risk-based capital |
11.36 |
% |
|
11.96 |
% |
|
11.98 |
% |
|
11.88 |
% |
|
12.25 |
% |
| Yadkin Bank1: |
|
|
|
|
|
|
|
|
|
| Tier 1 leverage |
13.25 |
% |
|
10.34 |
% |
|
10.35 |
% |
|
10.17 |
% |
|
10.59 |
% |
| Common equity Tier 1 |
10.96 |
% |
|
11.64 |
% |
|
11.64 |
% |
|
11.53 |
% |
|
11.97 |
% |
| Tier 1 risk-based capital |
10.96 |
% |
|
11.64 |
% |
|
11.64 |
% |
|
11.53 |
% |
|
11.97 |
% |
| Total risk-based capital |
11.19 |
% |
|
11.99 |
% |
|
12.04 |
% |
|
11.93 |
% |
|
12.34 |
% |
| |
|
|
|
|
|
|
|
|
|
| 1
Regulatory capital ratios for Q1 2016 are estimates. |
QUARTERLY BALANCE SHEETS (UNAUDITED)
| |
Ending balances |
| (Dollars in thousands, except per share
data) |
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
| Cash and due from
banks |
$ |
67,923 |
|
|
$ |
60,783 |
|
|
$ |
54,667 |
|
|
$ |
65,620 |
|
|
$ |
55,426 |
|
| Interest-earning
deposits with banks |
42,892 |
|
|
50,885 |
|
|
23,088 |
|
|
57,141 |
|
|
52,826 |
|
| Federal funds sold |
— |
|
|
250 |
|
|
— |
|
|
200 |
|
|
250 |
|
| Investment securities
available for sale |
1,103,444 |
|
|
689,132 |
|
|
713,492 |
|
|
649,015 |
|
|
658,323 |
|
| Investment securities
held to maturity |
39,071 |
|
|
39,182 |
|
|
39,292 |
|
|
39,402 |
|
|
39,511 |
|
| Loans held for
sale |
53,820 |
|
|
47,287 |
|
|
37,962 |
|
|
38,622 |
|
|
32,322 |
|
| Loans |
5,208,752 |
|
|
3,076,544 |
|
|
2,979,779 |
|
|
2,955,771 |
|
|
2,913,859 |
|
| Allowance for loan
losses |
(10,231 |
) |
|
(9,769 |
) |
|
(9,000 |
) |
|
(8,358 |
) |
|
(8,284 |
) |
| Net loans |
5,198,521 |
|
|
3,066,775 |
|
|
2,970,779 |
|
|
2,947,413 |
|
|
2,905,575 |
|
| Purchased accounts
receivable |
57,175 |
|
|
52,688 |
|
|
69,383 |
|
|
69,933 |
|
|
62,129 |
|
| Federal Home Loan Bank
stock |
41,851 |
|
|
24,844 |
|
|
22,932 |
|
|
21,976 |
|
|
20,277 |
|
| Premises and equipment,
net |
119,244 |
|
|
73,739 |
|
|
75,530 |
|
|
77,513 |
|
|
78,683 |
|
| Bank-owned life
insurance |
141,170 |
|
|
78,863 |
|
|
78,397 |
|
|
77,927 |
|
|
77,462 |
|
| Foreclosed assets |
18,435 |
|
|
15,346 |
|
|
11,793 |
|
|
13,547 |
|
|
12,427 |
|
| Deferred tax asset,
net |
79,342 |
|
|
55,607 |
|
|
54,402 |
|
|
62,179 |
|
|
67,071 |
|
| Goodwill |
337,711 |
|
|
152,152 |
|
|
152,152 |
|
|
152,152 |
|
|
152,152 |
|
| Other intangible
assets, net |
32,416 |
|
|
13,579 |
|
|
14,324 |
|
|
15,085 |
|
|
15,862 |
|
| Accrued interest
receivable and other assets |
87,995 |
|
|
53,032 |
|
|
44,033 |
|
|
39,327 |
|
|
38,782 |
|
| Total assets |
$ |
7,421,010 |
|
|
$ |
4,474,144 |
|
|
$ |
4,362,226 |
|
|
$ |
4,327,052 |
|
|
$ |
4,269,078 |
|
| |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Non-interest demand |
$ |
1,151,128 |
|
|
$ |
744,053 |
|
|
$ |
730,928 |
|
|
$ |
697,653 |
|
|
$ |
655,333 |
|
| Interest-bearing demand |
1,158,417 |
|
|
523,719 |
|
|
484,187 |
|
|
475,597 |
|
|
472,524 |
|
| Money market and savings |
1,576,974 |
|
|
1,024,617 |
|
|
1,001,739 |
|
|
991,982 |
|
|
1,010,348 |
|
| Time |
1,463,193 |
|
|
1,017,908 |
|
|
1,030,915 |
|
|
1,077,862 |
|
|
1,070,970 |
|
| Total deposits |
5,349,712 |
|
|
3,310,297 |
|
|
3,247,769 |
|
|
3,243,094 |
|
|
3,209,175 |
|
| Short-term
borrowings |
719,800 |
|
|
375,500 |
|
|
395,500 |
|
|
355,500 |
|
|
325,500 |
|
| Long-term debt |
239,763 |
|
|
194,967 |
|
|
129,859 |
|
|
147,265 |
|
|
137,199 |
|
| Accrued interest
payable and other liabilities |
127,093 |
|
|
30,831 |
|
|
32,301 |
|
|
33,077 |
|
|
29,385 |
|
| Total liabilities |
6,436,368 |
|
|
3,911,595 |
|
|
3,805,429 |
|
|
3,778,936 |
|
|
3,701,259 |
|
| |
|
|
|
|
|
|
|
|
|
| Shareholders'
equity |
|
|
|
|
|
|
|
|
|
| Preferred stock |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28,405 |
|
| Common stock |
51,480 |
|
|
31,727 |
|
|
31,712 |
|
|
31,712 |
|
|
31,609 |
|
| Common stock
warrant |
717 |
|
|
717 |
|
|
717 |
|
|
717 |
|
|
717 |
|
| Additional paid-in
capital |
904,711 |
|
|
492,828 |
|
|
492,387 |
|
|
492,151 |
|
|
492,194 |
|
| Retained earnings |
33,621 |
|
|
44,794 |
|
|
36,109 |
|
|
27,481 |
|
|
16,922 |
|
| Accumulated other
comprehensive loss |
(5,887 |
) |
|
(7,517 |
) |
|
(4,128 |
) |
|
(3,945 |
) |
|
(2,028 |
) |
| Total shareholders' equity |
984,642 |
|
|
562,549 |
|
|
556,797 |
|
|
548,116 |
|
|
567,819 |
|
| Total liabilities and shareholders'
equity |
$ |
7,421,010 |
|
|
$ |
4,474,144 |
|
|
$ |
4,362,226 |
|
|
$ |
4,327,052 |
|
|
$ |
4,269,078 |
|
| |
|
|
|
|
|
|
|
|
|
QUARTERLY NET INTEREST MARGIN ANALYSIS
| |
Three months endedMarch 31, 2016 |
|
Three months endedDecember 31, 2015 |
|
Three months endedMarch 31, 2015 |
| |
|
|
| (Dollars in
thousands) |
AverageBalance |
|
|
Interest (1) |
|
|
Yield/Cost (1) |
|
AverageBalance |
|
|
Interest (1) |
|
|
Yield/Cost (1) |
|
|
AverageBalance |
|
|
Interest (1) |
|
|
Yield/Cost (1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans (2) |
$ |
3,843,108 |
|
|
$ |
48,065 |
|
|
5.03 |
% |
|
$ |
3,052,866 |
|
|
$ |
41,082 |
|
|
5.34 |
% |
|
$ |
2,924,287 |
|
|
$ |
39,796 |
|
|
5.52 |
% |
| Investment securities
(3) |
905,582 |
|
|
6,460 |
|
|
2.87 |
|
|
746,243 |
|
|
5,511 |
|
|
2.93 |
|
|
706,888 |
|
|
4,229 |
|
|
2.43 |
|
| Federal funds and
other |
63,660 |
|
|
103 |
|
|
0.65 |
|
|
51,900 |
|
|
54 |
|
|
0.41 |
|
|
59,572 |
|
|
50 |
|
|
0.34 |
|
| Total interest-earning
assets |
4,812,350 |
|
|
54,628 |
|
|
4.57 |
% |
|
3,851,009 |
|
|
46,647 |
|
|
4.81 |
% |
|
3,690,747 |
|
|
44,075 |
|
|
4.84 |
% |
| Goodwill |
216,758 |
|
|
|
|
|
|
152,152 |
|
|
|
|
|
|
152,152 |
|
|
|
|
|
| Other intangibles,
net |
20,032 |
|
|
|
|
|
|
14,036 |
|
|
|
|
|
|
16,359 |
|
|
|
|
|
| Other
non-interest-earning assets |
437,297 |
|
|
|
|
|
|
382,964 |
|
|
|
|
|
|
391,489 |
|
|
|
|
|
| Total assets |
$ |
5,486,437 |
|
|
|
|
|
|
$ |
4,400,161 |
|
|
|
|
|
|
$ |
4,250,747 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
demand |
$ |
741,589 |
|
|
$ |
303 |
|
|
0.16 |
% |
|
$ |
499,987 |
|
|
$ |
135 |
|
|
0.11 |
% |
|
$ |
470,919 |
|
|
$ |
160 |
|
|
0.14 |
% |
| Money market and
savings |
1,202,797 |
|
|
776 |
|
|
0.26 |
|
|
997,744 |
|
|
632 |
|
|
0.25 |
|
|
1,003,156 |
|
|
716 |
|
|
0.29 |
|
| Time |
1,196,072 |
|
|
2,387 |
|
|
0.80 |
|
|
1,044,986 |
|
|
2,183 |
|
|
0.83 |
|
|
1,089,950 |
|
|
2,013 |
|
|
0.75 |
|
| Total interest-bearing
deposits |
3,140,458 |
|
|
3,466 |
|
|
0.44 |
|
|
2,542,717 |
|
|
2,950 |
|
|
0.46 |
|
|
2,564,025 |
|
|
2,889 |
|
|
0.46 |
|
| Short-term
borrowings |
475,267 |
|
|
808 |
|
|
0.68 |
|
|
372,832 |
|
|
489 |
|
|
0.52 |
|
|
288,000 |
|
|
289 |
|
|
0.41 |
|
| Long-term debt |
252,442 |
|
|
1,867 |
|
|
2.97 |
|
|
136,818 |
|
|
1,541 |
|
|
4.47 |
|
|
150,450 |
|
|
1,488 |
|
|
4.01 |
|
| Total interest-bearing
liabilities |
3,868,167 |
|
|
6,141 |
|
|
0.64 |
% |
|
3,052,367 |
|
|
4,980 |
|
|
0.65 |
% |
|
3,002,475 |
|
|
4,666 |
|
|
0.63 |
% |
| Non-interest-bearing
deposits |
864,192 |
|
|
|
|
|
|
756,846 |
|
|
|
|
|
|
657,702 |
|
|
|
|
|
| Other liabilities |
43,786 |
|
|
|
|
|
|
29,789 |
|
|
|
|
|
|
26,425 |
|
|
|
|
|
| Total liabilities |
4,776,145 |
|
|
|
|
|
|
3,839,002 |
|
|
|
|
|
|
3,686,602 |
|
|
|
|
|
| Shareholders’
equity |
710,292 |
|
|
|
|
|
|
561,159 |
|
|
|
|
|
|
564,145 |
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
$ |
5,486,437 |
|
|
|
|
|
|
$ |
4,400,161 |
|
|
|
|
|
|
$ |
4,250,747 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income,
taxable equivalent |
|
|
$ |
48,487 |
|
|
|
|
|
|
$ |
41,667 |
|
|
|
|
|
|
$ |
39,409 |
|
|
|
| Interest rate
spread |
|
|
|
|
3.93 |
% |
|
|
|
|
|
4.16 |
% |
|
|
|
|
|
4.21 |
% |
| Tax equivalent net
interest margin |
|
|
|
|
4.05 |
% |
|
|
|
|
|
4.29 |
% |
|
|
|
|
|
4.33 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percentage of average
interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
124.41 |
% |
|
|
|
|
|
126.16 |
% |
|
|
|
|
|
122.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1)
Interest amounts and yields are stated on a taxable-equivalent
basis assuming a federal income tax rate of 35 percent. |
| (2) Loans
include loans held for sale and non-accrual loans. |
| (3)
Investment securities include investments in FHLB stock. |
APPENDIX - RECONCILIATION OF NON-GAAP MEASURES
| |
As of and for the three months |
| (Dollars in thousands, except per share
data) |
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
| Operating
Earnings |
|
|
|
|
|
|
|
|
|
| Net income |
$ |
7,800 |
|
|
$ |
11,848 |
|
|
$ |
11,788 |
|
|
$ |
10,741 |
|
|
$ |
10,250 |
|
| Securities (gains) losses |
(130 |
) |
|
85 |
|
|
— |
|
|
(84 |
) |
|
(1 |
) |
| Gain on sale of branches |
— |
|
|
(88 |
) |
|
— |
|
|
— |
|
|
— |
|
| Merger and conversion costs |
10,335 |
|
|
803 |
|
|
104 |
|
|
(25 |
) |
|
220 |
|
| Restructuring charges |
21 |
|
|
282 |
|
|
50 |
|
|
2,294 |
|
|
907 |
|
| Income tax effect of
adjustments |
(3,217 |
) |
|
(311 |
) |
|
(59 |
) |
|
(836 |
) |
|
(431 |
) |
| DTA revaluation from reduction in
state income tax rates, net of federal benefit |
— |
|
|
— |
|
|
651 |
|
|
— |
|
|
— |
|
| Net operating earnings
(Non-GAAP) |
14,809 |
|
|
12,619 |
|
|
12,534 |
|
|
12,090 |
|
|
10,945 |
|
| Dividends on preferred stock |
— |
|
|
— |
|
|
— |
|
|
183 |
|
|
639 |
|
| Net operating earnings available to
common shareholders (Non-GAAP) |
$ |
14,809 |
|
|
$ |
12,619 |
|
|
$ |
12,534 |
|
|
$ |
11,907 |
|
|
$ |
10,306 |
|
| Net operating earnings per common
share: |
|
|
|
|
|
|
|
|
|
| Basic (Non-GAAP) |
$ |
0.39 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.38 |
|
|
$ |
0.33 |
|
| Diluted (Non-GAAP) |
0.39 |
|
|
0.40 |
|
|
0.40 |
|
|
0.38 |
|
|
0.33 |
|
| |
|
|
|
|
|
|
|
|
|
| Pre-Tax,
Pre-Provision Operating Earnings |
|
|
|
|
|
|
|
|
|
| Net income |
$ |
7,800 |
|
|
$ |
11,848 |
|
|
$ |
11,788 |
|
|
$ |
10,741 |
|
|
$ |
10,250 |
|
| Provision for loan losses |
1,881 |
|
|
2,714 |
|
|
1,576 |
|
|
994 |
|
|
961 |
|
| Income tax expense |
4,920 |
|
|
6,182 |
|
|
7,891 |
|
|
6,076 |
|
|
5,846 |
|
| Pre-tax, pre-provision income |
14,601 |
|
|
20,744 |
|
|
21,255 |
|
|
17,811 |
|
|
17,057 |
|
| Securities (gains) losses |
(130 |
) |
|
85 |
|
|
— |
|
|
(84 |
) |
|
(1 |
) |
| Gain on sale of branches |
— |
|
|
(88 |
) |
|
— |
|
|
— |
|
|
— |
|
| Merger and conversion costs |
10,335 |
|
|
803 |
|
|
104 |
|
|
(25 |
) |
|
220 |
|
| Restructuring charges |
21 |
|
|
282 |
|
|
50 |
|
|
2,294 |
|
|
907 |
|
| Pre-tax, pre-provision operating
earnings (Non-GAAP) |
$ |
24,827 |
|
|
$ |
21,826 |
|
|
$ |
21,409 |
|
|
$ |
19,996 |
|
|
$ |
18,183 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating
Non-Interest Income |
|
|
|
|
|
|
|
|
|
| Non-interest income |
$ |
11,354 |
|
|
$ |
9,966 |
|
|
$ |
10,798 |
|
|
$ |
10,800 |
|
|
$ |
8,839 |
|
| Gain on sale of branches |
— |
|
|
(88 |
) |
|
— |
|
|
— |
|
|
— |
|
| Securities (gains) losses |
(130 |
) |
|
85 |
|
|
— |
|
|
(84 |
) |
|
(1 |
) |
| Operating non-interest income
(Non-GAAP) |
$ |
11,224 |
|
|
$ |
9,963 |
|
|
$ |
10,798 |
|
|
$ |
10,716 |
|
|
$ |
8,838 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
| Non-interest expense |
$ |
44,798 |
|
|
$ |
30,564 |
|
|
$ |
28,848 |
|
|
$ |
32,316 |
|
|
$ |
30,958 |
|
| Merger and conversion costs |
(10,335 |
) |
|
(803 |
) |
|
(104 |
) |
|
25 |
|
|
(220 |
) |
| Restructuring charges |
(21 |
) |
|
(282 |
) |
|
(50 |
) |
|
(2,294 |
) |
|
(907 |
) |
| Operating non-interest expense
(Non-GAAP) |
$ |
34,442 |
|
|
$ |
29,479 |
|
|
$ |
28,694 |
|
|
$ |
30,047 |
|
|
$ |
29,831 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
75.42 |
% |
|
59.57 |
% |
|
57.58 |
% |
|
64.47 |
% |
|
64.48 |
% |
| Effect to adjust for securities
gains (losses) |
0.16 |
|
|
(0.10 |
) |
|
— |
|
|
0.11 |
|
|
— |
|
| Effect to adjust for gain on sale
of branches |
— |
|
|
0.10 |
|
|
— |
|
|
— |
|
|
— |
|
| Effect to adjust for merger and
conversion costs |
(17.43 |
) |
|
(1.56 |
) |
|
(0.21 |
) |
|
0.04 |
|
|
(0.46 |
) |
| Effect to adjust for restructuring
costs |
(0.04 |
) |
|
(0.55 |
) |
|
(0.10 |
) |
|
(4.58 |
) |
|
(1.89 |
) |
| Operating efficiency ratio
(Non-GAAP) |
58.11 |
% |
|
57.46 |
% |
|
57.27 |
% |
|
60.04 |
% |
|
62.13 |
% |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Taxable-Equivalent Net Interest Income |
|
|
|
|
|
|
|
|
|
| Net interest income |
48,045 |
|
|
$ |
41,342 |
|
|
$ |
39,305 |
|
|
$ |
39,327 |
|
|
$ |
39,176 |
|
| Taxable-equivalent adjustment |
442 |
|
|
325 |
|
|
314 |
|
|
302 |
|
|
233 |
|
| Taxable-equivalent net interest
income (Non-GAAP) |
$ |
48,487 |
|
|
$ |
41,667 |
|
|
$ |
39,619 |
|
|
$ |
39,629 |
|
|
$ |
39,409 |
|
| |
|
|
|
|
|
|
|
|
|
| Core Net
Interest Income and Net Interest Margin (Annualized) |
|
|
|
|
|
|
|
|
|
| Taxable-equivalent net interest
income (Non-GAAP) |
$ |
48,487 |
|
|
$ |
41,667 |
|
|
$ |
39,619 |
|
|
$ |
39,629 |
|
|
$ |
39,409 |
|
| Acquisition accounting amortization
/ accretion adjustments related to: |
|
|
|
|
|
|
|
|
|
| Loans |
(3,565 |
) |
|
(2,970 |
) |
|
(3,404 |
) |
|
(4,035 |
) |
|
(4,451 |
) |
| Deposits |
(553 |
) |
|
(522 |
) |
|
(713 |
) |
|
(863 |
) |
|
(1,011 |
) |
| Borrowings and debt |
119 |
|
|
170 |
|
|
155 |
|
|
132 |
|
|
100 |
|
| Income from issuer call of debt
security |
(165 |
) |
|
(742 |
) |
|
— |
|
|
— |
|
|
— |
|
| Core net interest income
(Non-GAAP) |
$ |
44,323 |
|
|
$ |
37,603 |
|
|
$ |
35,657 |
|
|
$ |
34,863 |
|
|
$ |
34,047 |
|
| |
|
|
|
|
|
|
|
|
|
| Divided by: average
interest-earning assets |
$ |
4,812,350 |
|
|
$ |
3,851,009 |
|
|
$ |
3,750,223 |
|
|
$ |
3,702,156 |
|
|
$ |
3,690,747 |
|
| Taxable-equivalent net interest
margin (non-GAAP) |
4.05 |
% |
|
4.29 |
% |
|
4.19 |
% |
|
4.29 |
% |
|
4.33 |
% |
| Core taxable-equivalent net
interest margin (Non-GAAP) |
3.70 |
% |
|
3.87 |
% |
|
3.77 |
% |
|
3.78 |
% |
|
3.74 |
% |
| |
|
|
|
|
|
|
|
|
|
| Adjusted
Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
$ |
10,231 |
|
|
$ |
9,769 |
|
|
$ |
9,000 |
|
|
$ |
8,358 |
|
|
$ |
8,284 |
|
| Net acquisition accounting fair
value discounts to loans |
68,063 |
|
|
40,188 |
|
|
43,095 |
|
|
47,160 |
|
|
51,125 |
|
| Adjusted allowance for loan losses
(Non-GAAP) |
$ |
78,294 |
|
|
$ |
49,957 |
|
|
$ |
52,095 |
|
|
$ |
55,518 |
|
|
$ |
59,409 |
|
| |
|
|
|
|
|
|
|
|
|
| Divided by: total loans |
$ |
5,208,752 |
|
|
$ |
3,076,544 |
|
|
$ |
2,979,779 |
|
|
$ |
2,955,771 |
|
|
$ |
2,913,859 |
|
| Adjusted allowance for loan losses
to loans (Non-GAAP) |
1.50 |
% |
|
1.62 |
% |
|
1.75 |
% |
|
1.88 |
% |
|
2.04 |
% |
| |
|
|
|
|
|
|
|
|
|
| Tangible Common
Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
$ |
984,642 |
|
|
$ |
562,549 |
|
|
$ |
556,797 |
|
|
$ |
548,116 |
|
|
$ |
567,819 |
|
| Less preferred stock |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28,405 |
|
| Less goodwill and other intangible
assets |
370,127 |
|
|
165,731 |
|
|
166,476 |
|
|
167,237 |
|
|
168,014 |
|
| Tangible common equity
(Non-GAAP) |
$ |
614,515 |
|
|
$ |
396,818 |
|
|
$ |
390,321 |
|
|
$ |
380,879 |
|
|
$ |
371,400 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
7,421,010 |
|
|
$ |
4,474,144 |
|
|
$ |
4,362,226 |
|
|
$ |
4,327,052 |
|
|
$ |
4,269,078 |
|
| Less goodwill and other intangible
assets |
370,127 |
|
|
165,731 |
|
|
166,476 |
|
|
167,237 |
|
|
168,014 |
|
| Tangible assets |
$ |
7,050,883 |
|
|
$ |
4,308,413 |
|
|
$ |
4,195,750 |
|
|
$ |
4,159,815 |
|
|
$ |
4,101,064 |
|
| |
|
|
|
|
|
|
|
|
|
| Tangible common equity to tangible
assets (Non-GAAP) |
8.72 |
% |
|
9.21 |
% |
|
9.30 |
% |
|
9.16 |
% |
|
9.06 |
% |
| |
|
|
|
|
|
|
|
|
|
| Tangible Book
Value per Share |
|
|
|
|
|
|
|
|
|
| Tangible common equity
(Non-GAAP) |
$ |
614,515 |
|
|
$ |
396,818 |
|
|
$ |
390,321 |
|
|
$ |
380,879 |
|
|
$ |
371,400 |
|
| Divided by: common shares
outstanding |
51,480,284 |
|
|
31,726,767 |
|
|
31,711,901 |
|
|
31,712,021 |
|
|
31,609,021 |
|
| Tangible book value per common
share (Non-GAAP) |
$ |
11.94 |
|
|
$ |
12.51 |
|
|
$ |
12.31 |
|
|
$ |
12.01 |
|
|
$ |
11.75 |
|
| |
|
|
|
|
|
|
|
|
|
CONTACT:
Terry Earley, CFO
Yadkin Financial Corporation
Phone: (919) 659-9015
Email: Terry.Earley@yadkinbank.com
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