Capital Bank Financial Corp. Reports 3Q EPS and Record Core EPS of $0.33
-
Net income of
$15.3 million increased 18% sequentially; - EPS grew 18% sequentially and 22% year over year;
-
Record new loans of
$490 million increased 10% year over year; - Loan portfolio grew 12% year over year;
- ROA and Core ROA excluding commercial indemnification expense, increased to 0.86%, and 0.92%, respectively; and
-
Declared a
$0.10 quarterly common stock dividend.
Core adjustments for the third quarter of 2015 mainly included
Loan Portfolio and Composition
During the third quarter, the loan portfolio increased by
The relative composition of the Company's loan portfolio at the end of the third and second quarters of 2015 and fourth quarter of 2014 was as follows:
2015 |
2015 |
2014 |
|
Commercial real estate | 22% | 23% | 23% |
C&I | 42% | 43% | 42% |
Consumer | 33% | 32% | 32% |
Other | 3% | 2% | 3% |
Total | 100% | 100% | 100% |
Deposits Composition and Cost of Funds
During the third quarter, total deposits increased by
Net Interest Income and Net Interest Margin
Net interest income increased
Non-Interest Income
Non-interest income increased
The year over year increase was mainly driven by a decline in
Provision for Loan and Lease Losses and Credit Quality
The provision of
At
At
Non-Interest Expense
Non-interest expense declined
As of
Income Tax Expense
Income tax expense was
Financial Position
Total assets increased by
The Company's national bank subsidiary,
The Company declared a cash dividend of
Conference Call
The Company will host a conference call today at
Forward-Looking Statements
Information in this press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors
more fully described under the caption "Risk Factors" in the annual report on Form 10-K and other periodic reports filed by us with the
Use of Non-GAAP Financial Measures
Core net income, core efficiency ratio, core return-on-assets ("core ROA"), tangible book value and tangible book value per share are each non-GAAP measures used in this report. A reconciliation to the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total non-interest income and total non-interest expense in the case of core efficiency ratio, and total shareholders' equity in the case of tangible book value and tangible book value per share - appears in tabular form at the end of this release. The Company believes core net income, the core efficiency ratio and core ROA are useful for both investors and management to understand the effects of certain non-interest items and provide an alternative view of the Company's performance over time and in comparison to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value and tangible book value per share are useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About
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CONSOLIDATED STATEMENTS OF INCOME | ||||||
(Dollars and shares in thousands, except per share data) | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
2015 |
2015 |
2015 |
2014 |
2014 |
||
Interest and dividend income |
|
|
|
|
|
|
Interest expense | 7,081 | 6,626 | 6,317 | 6,399 | 6,218 | |
Net Interest Income | 61,637 | 60,685 | 59,729 | 61,351 | 61,425 | |
Provision (reversal) for loan and lease losses | 799 | 1,299 | (841) | (637) | (1,332) | |
Net interest income after provision (reversal) for loan and lease losses | 60,838 | 59,386 | 60,570 | 61,988 | 62,757 | |
Non-Interest Income | ||||||
Service charges on deposit accounts | 5,472 | 5,189 | 4,705 | 5,390 | 5,565 | |
Debit card income | 3,113 | 3,176 | 2,964 | 3,013 | 3,017 | |
Fees on mortgage loans originated and sold | 990 | 1,278 | 1,147 | 1,053 | 1,195 | |
Investment advisory and trust fees | 860 | 1,125 | 1,006 | 1,170 | 1,183 | |
|
(1,418) | (2,499) | (2,439) | (3,421) | (3,881) | |
Investment securities gains (losses), net | (43) | 231 | 90 | 513 | 317 | |
Other-than-temporary impairment loss on investments: | ||||||
Gross impairment loss | — | (288) | — | — | — | |
Less: Impairment recognized in other comprehensive income | — | — | — | — | — | |
Net impairment loss recognized in earnings | — | (288) | — | — | — | |
Other income | 2,444 | 2,151 | 2,447 | 2,876 | 2,561 | |
Total non-interest income | 11,418 | 10,363 | 9,920 | 10,594 | 9,957 | |
Non-Interest Expense | ||||||
Salaries and employee benefits | 22,620 | 21,881 | 23,881 | 23,871 | 22,590 | |
Stock-based compensation expense | 309 | 108 | 284 | 451 | 443 | |
Net occupancy and equipment expense | 7,621 | 7,754 | 8,129 | 8,020 | 8,475 | |
Computer services | 3,471 | 3,343 | 3,397 | 3,413 | 3,332 | |
Software expense | 2,198 | 2,082 | 2,142 | 2,074 | 1,932 | |
Telecommunication expense | 1,515 | 1,367 | 1,380 | 1,347 | 1,406 | |
OREO valuation expense | 2,075 | 1,710 | 1,390 | 1,554 | 2,752 | |
Net losses (gains) on sales of OREO | (351) | (957) | (7) | (419) | (223) | |
Foreclosed asset related expense | 872 | 600 | 674 | 619 | 845 | |
Loan workout expense | 194 | 795 | 623 | 1,352 | 911 | |
Professional fees | 1,958 | 1,723 | 1,734 | 2,116 | 1,532 | |
Losses on extinguishment of debt | — | 1,438 | — | — | — | |
Restructuring charges, net | 23 | 178 | 2,341 | — | — | |
Contingent value right expense | — | 4 | 116 | 334 | 278 | |
Regulatory assessments | 1,423 | 1,831 | 1,695 | 1,705 | 1,637 | |
Other expense | 4,418 | 5,645 | 4,868 | 4,495 | 5,508 | |
Total non-interest expense | 48,346 | 49,502 | 52,647 | 50,932 | 51,418 | |
Income before income taxes | 23,910 | 20,247 | 17,843 | 21,650 | 21,296 | |
Income tax expense | 8,589 | 7,257 | 6,454 | 7,814 | 8,053 | |
Net income |
|
|
|
|
|
|
Earnings per share: | ||||||
Basic |
|
|
|
|
|
|
Diluted |
|
|
$ 0.24 | $ 0.29 | $ 0.27 | |
Weighted average shares outstanding: | ||||||
Basic | 45,359 | 45,913 | 46,294 | 46,964 | 47,912 | |
Diluted | 46,534 | 47,220 | 47,632 | 48,243 | 49,069 |
|
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CONSOLIDATED BALANCE SHEETS | |||
(Dollars and shares in thousands) | |||
(Unaudited) | |||
2015 |
2015 |
2014 |
|
Assets | |||
Cash and due from banks |
|
|
|
Interest-bearing deposits in other banks | 53,947 | 107,649 | 81,942 |
Total cash and cash equivalents | 134,589 | 201,286 | 188,135 |
Trading securities | 2,893 | 2,898 | 2,410 |
Investment securities available-for-sale at fair value (amortized cost |
647,423 | 600,138 | 555,893 |
Investment securities held-to-maturity at amortized cost (fair value |
467,544 | 426,427 | 436,962 |
Loans held for sale | 8,515 | 7,127 | 5,516 |
Loans, net of deferred loan costs and fees | 5,396,429 | 5,199,287 | 4,994,703 |
Less: Allowance for loan and lease losses | 46,278 | 48,063 | 50,211 |
Loans, net | 5,350,151 | 5,151,224 | 4,944,492 |
Other real estate owned | 54,691 | 63,737 | 77,626 |
|
9,789 | 11,764 | 16,762 |
Receivable from |
1,052 | 2,652 | 3,661 |
Premises and equipment, net | 161,342 | 163,070 | 173,176 |
Goodwill | 134,522 | 134,522 | 134,522 |
Intangible assets, net | 16,045 | 16,995 | 18,897 |
Deferred income tax asset, net | 104,950 | 117,151 | 129,624 |
Other assets | 167,690 | 155,510 | 143,734 |
Total Assets |
|
|
|
Liabilities and Shareholders' Equity | |||
Liabilities | |||
Deposits: | |||
Non-interest bearing demand |
|
|
|
Interest bearing demand | 1,251,365 | 1,367,123 | 1,383,990 |
Money market | 1,005,406 | 991,520 | 898,254 |
Savings | 436,385 | 479,885 | 500,028 |
Time deposits | 1,773,170 | 1,521,810 | 1,418,700 |
Total deposits | 5,565,578 | 5,492,423 | 5,255,100 |
|
520,947 | 355,995 | 296,091 |
Short-term borrowings | 16,708 | 18,466 | 23,407 |
Long-term borrowings | 85,230 | 84,688 | 139,681 |
Accrued expenses and other liabilities | 50,091 | 43,583 | 53,557 |
Total liabilities |
|
|
|
Shareholders' equity | |||
Preferred stock |
— | — | — |
Common stock-Class A |
372 | 372 | 370 |
Common stock-Class B |
183 | 183 | 187 |
Additional paid in capital | 1,079,229 | 1,078,740 | 1,081,628 |
Retained earnings | 198,103 | 182,782 | 158,403 |
Accumulated other comprehensive (loss) income | 2,578 | (4,545) | (3,824) |
Treasury stock, at cost, 11,039, 9,047 and 8,086 shares, respectively | (257,823) | (198,186) | (173,190) |
Total shareholders' equity | 1,022,642 | 1,059,346 | 1,063,574 |
Total Liabilities and Shareholders' Equity |
|
|
|
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|||||
KEY METRICS | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Performance Ratios | |||||
Interest rate spread | 3.68% | 3.79% | 3.83% | 3.92% | 4.01% |
Net interest margin | 3.82 % | 3.94% | 3.96% | 4.05% | 4.14% |
Return on average assets | 0.86% | 0.75% | 0.66% | 0.82% | 0.80% |
Return on average shareholders' equity | 5.85% | 4.90% | 4.29% | 5.21% | 4.95% |
Efficiency ratio | 66.18% | 69.67% | 75.59% | 70.79% | 72.03% |
Average interest-earning assets to average interest-bearing liabilities | 132.10% | 133.39% | 131.94% | 131.89% | 131.43% |
Average loans receivable to average deposits | 96.01% | 94.12% | 95.47% | 93.94% | 92.32% |
Yield on interest-earning assets | 4.26% | 4.36% | 4.38% | 4.47% | 4.56% |
Cost of interest-bearing liabilities | 0.58% | 0.57% | 0.55% | 0.55% | 0.55% |
Asset and Credit Quality Ratios-Total Loans | |||||
Non-accrual loans |
|
|
|
|
|
Nonperforming acquired loans |
|
|
|
|
|
Nonperforming loans to loans receivable | 1.51% | 1.79% | 2.51% | 2.61% | 3.57% |
Nonperforming assets to total assets | 1.88% | 2.23% | 2.85% | 3.05% | 3.93% |
Covered loans to total gross loans | 1.45% | 3.39% | 3.71% | 3.95% | 4.58% |
ALLL to nonperforming assets | 33.88% | 30.56% | 24.22% | 24.09% | 19.92% |
ALLL to total gross loans | 0.86% | 0.92% | 0.95% | 1.00% | 1.08% |
Annualized net charge-offs/average loans | 0.20% | 0.12% | 0.09% | 0.12% | 0.14% |
Asset and Credit Quality Ratios-New Loans | |||||
Nonperforming new loans to total new loans receivable | 0.17% | 0.19% | 0.22% | 0.16% | 0.22% |
New loans ALLL to total gross new loans | 0.51% | 0.59% | 0.61% | 0.63% | 0.72% |
Asset and Credit Quality Ratios-Acquired Loans | |||||
Nonperforming acquired loans to total acquired loans receivable | 5.21% | 5.58% | 7.30% | 7.28% | 9.11% |
Covered acquired loans to total gross acquired loans | 5.45% | 11.38% | 11.47% | 11.47% | 11.84% |
Acquired loans ALLL to total gross acquired loans | 1.80% | 1.71% | 1.67% | 1.71% | 1.67% |
Capital Ratios (Company) | |||||
Total average shareholders' equity to total average assets | 14.79% | 15.41% | 15.48% | 15.72% | 16.14% |
Tangible common equity ratio (1) | 12.26% | 13.15% | 13.22% | 13.63% | 13.93% |
Tier 1 leverage capital ratio (2) | 13.60% | 14.66% | 14.42% | 14.28% | 14.40% |
Tier 1 common capital ratio (2) | 14.44% | 16.07% | 16.42% | N/A | N/A |
Tier 1 risk-based capital ratio (2) | 15.60% | 17.33% | 17.70% | 18.00% | 18.40% |
Total risk-based capital ratio (2) | 16.38% | 18.18% | 18.66% | 19.05% | 19.52% |
Capital Ratios (Bank) | |||||
Tangible common equity ratio (1) | 11.36% | 11.35% | 11.32% | 14.29% | 14.31% |
Tier 1 leverage capital ratio (2) | 11.19% | 11.15% | 10.89% | 13.52% | 13.37% |
Tier 1 common capital ratio (2) | 12.85% | 13.18% | 13.34% | N/A | N/A |
Tier 1 risk-based capital ratio (2) | 12.85% | 13.18% | 13.34% | 17.04% | 17.08% |
Total risk-based capital ratio (2) | 13.69% | 14.10% | 14.30% | 18.09% | 18.20% |
(1) See "Reconciliation of Non-GAAP Measures"
(2)
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LOANS AND DEPOSITS | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Loans | |||||
Non-owner occupied commercial real estate |
|
|
|
|
|
Other commercial construction and land | 192,283 | 182,283 | 180,166 | 200,755 | 243,563 |
Multifamily commercial real estate | 82,762 | 76,754 | 88,980 | 89,132 | 71,119 |
1-4 family residential construction and land | 87,193 | 78,572 | 66,547 | 68,658 | 76,442 |
Total commercial real estate | 1,209,463 | 1,171,960 | 1,159,456 | 1,157,101 | 1,188,321 |
Owner occupied commercial real estate | 1,065,875 | 1,030,111 | 1,038,493 | 1,046,736 | 1,026,853 |
Commercial and industrial | 1,219,101 | 1,181,451 | 1,125,708 | 1,073,791 | 959,641 |
Lease financing | 1,488 | 1,661 | 1,834 | 2,005 | 2,175 |
Total commercial | 2,286,464 | 2,213,223 | 2,166,035 | 2,122,532 | 1,988,669 |
1-4 family residential | 985,982 | 959,224 | 928,832 | 925,698 | 913,219 |
Home equity loans | 373,993 | 375,271 | 379,946 | 378,475 | 373,604 |
Other consumer loans | 401,324 | 341,590 | 296,753 | 272,453 | 242,451 |
Total consumer | 1,761,299 | 1,676,085 | 1,605,531 | 1,576,626 | 1,529,274 |
Other | 147,718 | 145,146 | 146,987 | 143,960 | 117,507 |
Total loans |
|
|
|
|
|
Deposits | |||||
Non-interest bearing demand |
|
|
|
|
|
Interest bearing demand | 1,251,365 | 1,367,123 | 1,405,390 | 1,383,990 | 1,309,839 |
Money market | 1,005,406 | 991,520 | 924,228 | 898,254 | 914,226 |
Savings | 436,385 | 479,885 | 491,394 | 500,028 | 514,729 |
Total core deposits | 3,792,408 | 3,970,613 | 3,935,435 | 3,836,400 | 3,745,350 |
Time deposits | 1,773,170 | 1,521,810 | 1,428,121 | 1,418,700 | 1,430,106 |
Total deposits |
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|
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LEGACY CREDIT EXPENSES | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Provision (reversal) on legacy loans |
|
|
|
|
|
|
1,418 | 2,499 | 2,439 | 3,421 | 3,881 |
OREO valuation expense | 2,075 | 1,710 | 1,390 | 1,554 | 2,752 |
Net losses (gains) on sales of OREO | (351) | (957) | (7) | (419) | (223) |
Foreclosed asset related expense | 872 | 600 | 674 | 619 | 845 |
Loan workout expense | 194 | 795 | 623 | 1,352 | 911 |
Salaries and employee benefits | 797 | 796 | 832 | 993 | 1,054 |
Total legacy credit expenses |
|
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|
|
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QUARTERLY AVERAGE BALANCES AND YIELDS | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
Three Months Ended |
Three Months Ended |
|||||
Average Balances |
Interest |
Yield/ Rate |
Average Balances |
Interest |
Yield/ Rate |
|
Interest earning assets | ||||||
Loans (1) |
|
|
4.71% |
|
|
4.87% |
Investment securities (1) | 1,088,818 | 5,885 | 2.14% | 1,038,269 | 5,296 | 2.05% |
Interest bearing deposits in other banks | 36,596 | 19 | 0.21% | 55,553 | 36 | 0.26% |
Other earning assets (2) | 54,960 | 760 | 5.49% | 47,694 | 646 | 5.43% |
Total interest earning assets | 6,442,167 |
|
4.26% | 6,221,394 |
|
4.36% |
Non-interest earning assets | 645,715 | 664,119 | ||||
Total assets |
|
|
||||
Interest bearing liabilities | ||||||
Time deposits |
|
|
0.96% |
|
|
0.93% |
Money market | 977,273 | 658 | 0.27% | 943,160 | 600 | 0.26% |
Interest bearing demand | 1,291,439 | 540 | 0.17% | 1,381,609 | 578 | 0.17% |
Savings | 452,058 | 241 | 0.21% | 484,622 | 259 | 0.21% |
Total interest bearing deposits | 4,363,515 | 5,396 | 0.49% | 4,273,943 | 4,839 | 0.45% |
Short-term borrowings and FHLB advances | 428,249 | 272 | 0.25% | 261,030 | 143 | 0.22% |
Long-term borrowings | 84,922 | 1,413 | 6.60% | 129,029 | 1,645 | 5.11% |
Total interest bearing liabilities | 4,876,686 | 7,081 | 0.58% | 4,664,002 | 6,627 | 0.57% |
Non-interest bearing demand | 1,116,757 | 1,123,466 | ||||
Other liabilities | 46,117 | 36,966 | ||||
Shareholders' equity | 1,048,322 | 1,061,079 | ||||
Total liabilities and shareholders' equity |
|
|
||||
Net interest income and spread |
|
3.68% |
|
3.79% | ||
Net interest margin | 3.82% | 3.94% |
(1) Presented on a fully tax equivalent basis
(2)
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QUARTERLY AVERAGE BALANCES AND YIELDS | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
Three Months Ended |
Three Months Ended |
|||||
Average Balances |
Interest |
Yield/ Rate |
Average Balances |
Interest |
Yield/ Rate |
|
Interest earning assets | ||||||
Loans (1) | 5,261,793 |
|
4.71% |
|
|
5.17% |
Investment securities (1) | 1,088,818 | 5,885 | 2.14% | 1,064,710 | 5,160 | 1.92% |
Interest bearing deposits in other banks | 36,596 | 19 | 0.21% | 38,857 | 19 | 0.19% |
Other earning assets (2) | 54,960 | 760 | 5.49% | 45,774 | 604 | 5.24% |
Total interest earning assets | 6,442,167 |
|
4.26% | 5,911,601 |
|
4.56% |
Non-interest earning assets | 645,715 | 725,578 | ||||
Total assets |
|
|
||||
Interest bearing liabilities | ||||||
Time deposits |
|
|
0.96% |
|
|
0.86% |
Money market | 977,273 | 658 | 0.27% | 935,223 | 552 | 0.23% |
Interest bearing demand | 1,291,439 | 540 | 0.17% | 1,313,693 | 537 | 0.16% |
Savings | 452,058 | 241 | 0.21% | 525,854 | 289 | 0.22% |
Total interest bearing deposits | 4,363,515 |
|
0.49% | 4,147,466 |
|
0.42% |
Short-term borrowings and FHLB advances | 428,249 | 272 | 0.25% | 214,122 | 125 | 0.23% |
Long-term borrowings | 84,922 | 1,413 | 6.60% | 136,353 | 1,732 | 5.04% |
Total interest bearing liabilities | 4,876,686 | 7,081 | 0.58% | 4,497,941 | 6,218 | 0.55% |
Non-interest bearing demand | 1,116,757 | 1,010,817 | ||||
Other liabilities | 46,117 | 57,430 | ||||
Shareholders' equity | 1,048,322 | 1,070,991 | ||||
Total liabilities and shareholders' equity |
|
|
||||
Net interest income and spread |
|
3.68% |
|
4.01% | ||
Net interest margin | 3.82% | 4.14% |
(1) Presented on a fully tax equivalent basis
(2)
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YEAR TO DATE AVERAGE BALANCES AND YIELDS | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
Nine Months Ended |
Nine Months Ended |
|||||
Average Balances |
Interest |
Yield/ Rate |
Average Balances |
Interest |
Yield/ Rate |
|
Interest earning assets | ||||||
Loans (1) |
|
|
4.82% |
|
|
5.41% |
Investment securities (1) | 1,047,451 | 16,324 | 2.08% | 1,088,570 | 14,608 | 1.79% |
Interest bearing deposits in other banks | 50,187 | 88 | 0.23% | 49,487 | 81 | 0.22% |
Other earning assets (2) | 51,167 | 2,093 | 5.47% | 43,091 | 1,763 | 5.47% |
Total interest earning assets | 6,278,412 |
|
4.33% | 5,814,572 |
|
4.69% |
Non-interest earning assets | 665,016 | 758,525 | ||||
Total assets |
|
|
||||
Interest bearing liabilities | ||||||
Time deposits |
|
|
0.92% |
|
|
0.85% |
Money market | 945,170 | 1,811 | 0.26% | 938,560 | 1,602 | 0.23% |
Interest bearing demand | 1,356,300 | 1,710 | 0.17% | 1,319,416 | 1,631 | 0.17% |
Savings | 477,698 | 765 | 0.21% | 530,005 | 857 | 0.22% |
Total interest bearing deposits | 4,285,656 |
|
0.46% | 4,169,466 |
|
0.41% |
Short-term borrowings and FHLB advances | 336,791 | 597 | 0.24% | 139,063 | 246 | 0.24% |
Long-term borrowings | 116,922 | 4,784 | 5.47% | 135,837 | 5,154 | 5.07% |
Total interest bearing liabilities | 4,739,369 | 20,024 | 0.56% | 4,444,366 | 18,324 | 0.55% |
Non-interest bearing demand | 1,102,393 | 985,445 | ||||
Other liabilities | 44,891 | 53,082 | ||||
Shareholders' equity | 1,056,775 | 1,090,204 | ||||
Total liabilities and shareholders' equity |
|
|
||||
Net interest income and spread |
|
3.77% |
|
4.14% | ||
Net interest margin | 3.90% | 4.26% |
(1) Presented on a fully tax equivalent basis
(2)
|
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RECONCILIATION OF NON-GAAP MEASURES | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
CORE NET INCOME | Three Months Ended | |||||
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Net Income |
|
|
|
|
|
|
Pre-Tax | After-Tax | Pre-Tax | After-Tax | Pre-Tax | After-Tax | |
Adjustments | ||||||
Non-interest income | ||||||
Security losses (gains)* | 43 | 26 | 57 | 35 | (513) | (313) |
Non-interest expense | ||||||
Stock-based compensation expense* | — | — | — | — | 239 | 146 |
Contingent value right expense | — | — | 4 | 2 | 334 | 334 |
Severance expense* | 63 | 39 | 14 | 9 | — | — |
Loss on extinguishment of debt* | — | — | 1,438 | 887 | — | — |
Restructuring charges* | 23 | 14 | 178 | 110 | — | — |
Tax effect of adjustments* | (50) | N/A | (648) | N/A | 107 | N/A |
Core Net Income |
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|
|
|
Less: |
|
|
||||
Average Assets |
|
|
|
|||
ROA** | 0.86% | 0.75% | 0.82% | |||
Core ROA*** | 0.87% | 0.82% | 0.83% | |||
ROA** (excluding |
0.92% | 0.84% | ||||
Core ROA*** (excluding |
0.92% | 0.90% |
* Tax effected at an income tax rate of 36%
** ROA: Annualized net income / Average assets
*** Core ROA: Annualized core net income / Average assets
|
|||||
RECONCILIATION OF NON-GAAP MEASURES (Continuation) | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
CORE EFFICIENCY RATIO | Three Months Ended | ||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Net interest income |
|
|
|
|
|
Reported non-interest income |
|
|
|
|
|
Less: Securities gains (losses) | (43) | (57) | 90 | 513 | 317 |
Core non-interest income |
|
|
|
|
|
Reported non-interest expense |
|
|
|
|
|
Less: Stock-based compensation expense | — | — | 95 | 239 | 242 |
Contingent value right expense | — | 4 | 116 | 334 | 278 |
Severance expense | 63 | 14 | 111 | — | — |
Loss on extinguishment of debt | — | 1,438 | — | — | — |
Restructuring charges | 23 | 178 | 2,341 | — | — |
Core non-interest expense |
|
|
|
|
|
Less: |
|
|
|||
Efficiency ratio* | 66.18% | 69.67% | 75.59% | 70.79% | 72.03% |
Core efficiency ratio** | 66.02% | 67.32% | 71.86% | 70.50% | 71.62% |
Efficiency ratio* (excluding |
64.84% | 67.53% | |||
Core efficiency ratio** (excluding |
64.69% | 65.25% |
* Efficiency Ratio: Non-interest expense / (Non-interest income + Net interest income)
** Core Efficiency Ratio: Core non-interest expense / (Core non-interest income + Net interest income)
|
|||||
RECONCILIATION OF NON-GAAP MEASURES (Continuation) | |||||
(Dollars and shares in thousands, except per share data) | |||||
(Unaudited) | |||||
TANGIBLE BOOK VALUE | Three Months Ended | ||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Total shareholders' equity |
|
|
|
|
|
Less: goodwill and intangible assets, net of taxes | (144,447) | (145,035) | (145,622) | (146,168) | (146,671) |
Tangible book value* |
|
|
|
|
|
Common shares outstanding | 44,466 | 46,440 | 46,632 | 47,593 | 48,331 |
Tangible book value per share |
|
|
|
|
|
* Tangible book value is equal to book value less goodwill and core deposit intangibles, net of related deferred tax liabilities.
TANGIBLE COMMON EQUITY RATIO | Three Months Ended | ||||
2015 |
2015 |
2015 |
2014 |
2014 |
|
Total shareholders' equity |
|
|
|
|
|
Less: goodwill and intangible assets | (150,567) | (151,517) | (152,465) | (153,419) | (154,387) |
Tangible common equity |
|
|
|
|
|
Total assets |
|
|
|
|
|
Less: goodwill and intangible assets | (150,567) | (151,517) | (152,465) | (153,419) | (154,387) |
Tangible assets |
|
|
|
|
|
Tangible common equity ratio | 12.26% | 13.15% | 13.22% | 13.63% | 13.93% |
CONTACT:Source:Kenneth A. Posner Chief of Strategic Planning and Investor Relations Phone: (212) 399-4020 E-mail: Kposner@cbfcorp.com
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