First Business Financial Services, Inc. (the “Company” or “First
Business”) (NASDAQ:FBIZ), the parent company of First Business
Bank, First Business Bank - Milwaukee and Alterra Bank (“Alterra”),
today reported record quarterly results for the third quarter
highlighted by continued organic loan and deposit growth, strong
asset quality and strong Small Business Administration (“SBA”)
lending activity, attributed in large part to Alterra, its Kansas
City-based banking subsidiary acquired in November 2014.
Investments in staffing and technology continued, as the Company
continues to successfully execute its strategic growth objectives
and further build-out a scalable franchise.
Highlights for the quarter ended September 30, 2015 include:
- Net income grew to a record $4.4 million, marking a 23.3%
increase from net income of $3.6 million in the third quarter of
2014 which was prior to the acquisition of Alterra.
- Diluted earnings per common share increased to $0.50 for the
quarter ended September 30, 2015, compared to $0.45 for the quarter
ended September 30, 2014.
- Annualized return on average assets and annualized return on
average equity measured 1.02% and 11.93%, respectively, for the
third quarter of 2015, compared to 1.06% and 12.10%, respectively,
for the third quarter of 2014.
- Top line revenue, consisting of net interest income and
non-interest income, increased 40% to $18.7 million, compared to
the third quarter of 2014.
- Excluding Alterra, third quarter 2015 top line revenue grew 7%
organically to $14.3 million, compared to the third quarter of
2014.
- The Company’s third quarter efficiency ratio measured 64.8%,
including growth-related investments to expand the Small Business
Administration ("SBA") business development and support teams in
the Kansas City and Wisconsin markets, as well as investments for
the conversion to an industry leading client relationship
management platform and business intelligence software
implementation.
- Period-end net loans and leases - defined as gross loans and
leases receivable less allowance for loan and lease losses - grew
for the fourteenth consecutive quarter, reaching a record $1.362
billion at September 30, 2015, up 32% from September 30, 2014.
- Excluding Alterra, net loans and leases grew 9% organically to
a record $1.122 billion at September 30, 2015, from September 30,
2014.
- Net interest margin measured 3.61% for the third quarter of
2015, including nine basis points related to the net
accretion/amortization on purchase accounting adjustments on
Alterra loans, deposits and borrowings, compared to 3.44% for the
third quarter of 2014.
- Net charge offs were $127,000 in the third quarter of 2015
compared to net recoveries of $4,000 in the third quarter 2014.
Non-performing assets as a percent of total assets declined to
0.65% at September 30, 2015 from 1.12% one year prior.
“This quarter’s results validate the success of our
relationship-focused strategy and continued investments aimed at
growing our franchise, strengthening our team, and enhancing the
efficiency and effectiveness of our technology platforms,” said
Corey Chambas, President and Chief Executive Officer. “We continue
to deliver strong deposit and loan growth, while SBA originations
and loan sales have reached new highs and our expanding
distribution platform has positioned us well with a seasonally
strong pipeline as we approach the end of the year. We expect our
relationship-based SBA strategy, which emphasizes client
acquisition, to support continued growth in both loans and
non-interest bearing deposits and to produce accelerating fee
income, creating an earnings catalyst for the Company.”
The Company earned record net income of $4.4 million in the
third quarter of 2015, compared to $3.9 million earned in the
second quarter of 2015 and $3.6 million earned in the third quarter
of 2014. Third quarter 2015 results included no material
merger-related expenses, while non-recurring, pre-tax merger
expenses related to the Company’s acquisition of Alterra totaled
$33,000 and $104,000, respectively, for the second quarter of 2015
and third quarter of 2014. Diluted earnings per common share were
$0.50 for the third quarter of 2015, compared to $0.45 for the
linked quarter and $0.45 for the third quarter of 2014. Per share
data for all periods reflect the previously announced two-for-one
stock split in the form of a 100% stock dividend declared and paid
by the company in August 2015.
During the third quarter of 2015, Alterra contributed $2.9
million in net interest income, including $385,000 related to the
net accretion/amortization of purchase accounting adjustments, $1.5
million in non-interest income, $2.6 million in non-interest
expense and $355,000 in loan loss provision, contributing a total
of $1.5 million in pre-tax income to First Business's third quarter
results. In the second quarter of 2015, Alterra produced $3.0
million in net interest income, including $542,000 related to the
net accretion/amortization of purchase accounting adjustments, $1.4
million in non-interest income, $2.4 million in non-interest
expense and $770,000 in loan loss provision, contributing a total
of $1.3 million in pre-tax income to First Business's second
quarter results.
Results of Operations
Net interest income for the third quarter of 2015 totaled $14.6
million, an increase of $422,000, or 3.0%, compared to the linked
quarter which included $385,000 in net accretion/amortization of
purchase accounting adjustments. Net accretion/amortization totaled
$542,000 in the linked second quarter. Management expects the net
accretion/amortization to remain volatile in future quarters due to
the uncertain nature of loan prepayments. Excluding the impact of
net accretion/amortization in both quarters, net interest income
increased $579,000, or 4.2%. Compared to the same period last year
and excluding Alterra for this quarter, First Business's net
interest income increased $768,000, or 7.0%. The increase in net
interest income compared to the linked quarter and the same period
last year is primarily due to an increase in average earning asset
balances, specifically loans and leases receivable.
Net interest margin in the third quarter of 2015 was 3.61%,
which remained consistent with the second quarter of 2015 and
increased 17 basis points from the third quarter of 2014. Third
quarter 2015 net interest margin included nine basis points related
to the net accretion/amortization of purchase accounting
adjustments, while the linked quarter margin included 14 basis
points related to the net accretion/amortization of the purchase
accounting adjustments. Excluding the net accretion/amortization of
the purchase accounting adjustments, net interest margin improved
by five basis points principally due to an increase in loan fees in
lieu of interest. Net interest margin may experience occasional
volatility due to non-recurring events such as loan fees collected
in lieu of interest, the collection of interest on loans previously
in non-accrual, the accumulation of significant short-term deposit
inflows or the ongoing accretion/amortization of the fair value
purchase accounting adjustments related to the acquisition of
Alterra.
Non-interest income of $4.1 million for the third quarter of
2015 increased $1.6 million, or 66.8%, from the third quarter of
2014. Alterra contributed $1.5 million in non-interest income
during the third quarter of 2015, including $910,000 in gains on
the sale of SBA loans, $243,000 in gains on the sale of residential
mortgage loans and $146,000 in loan fees. Alterra’s revenue
contribution reflects continued growth in the SBA lending business,
including seasonally strong volumes. Expansion of Alterra's SBA
lending expertise into First Business's Wisconsin markets continues
to be successful. The Company expects to experience variability in
the timing of loan sale gains due to seasonal demand. Excluding
income directly attributed to Alterra, non-interest income totaled
$2.6 million, growing by $103,000, or 4.2%, from the third quarter
of 2014. Trust and investment services income, the Company's
leading source of fee revenue, totaled $1.3 million, increasing
$114,000, or 10.0%, from the third quarter of 2014 despite negative
market volatility affecting overall asset values during third
quarter 2015. Trust assets under management and administration
measured $978.6 million as of September 30, 2015, compared to
$998.0 million at June 30, 2015 and $927.4 million at September 30,
2014.
Non-interest expense for the third quarter of 2015 was $12.0
million, an increase of $3.9 million, or 48.9%, compared to the
third quarter of 2014. Third quarter 2015 included $2.6 million in
expenses at Alterra, while third quarter 2014 included $104,000 in
non-recurring merger-related costs. Excluding merger-related costs
and expenses incurred by Alterra, non-interest expense increased by
$1.4 million, or 18.1%, compared to the third quarter of 2014
driven primarily by investments in people and technology. Excluding
Alterra, compensation costs for the third quarter of 2015 grew by
$550,000, or 10.6%, compared to the third quarter of 2014
reflecting annual merit increases and the continued approach to
opportunistically hire new business development officers and
operational staff to support growth. General other non-interest
expenses, specifically professional services, increased in line
with expectations as the Company continues to invest in solutions
that will drive operational efficiency. Management expects to
continue investing in products and technology to support these
strategic growth initiatives. Expense growth was partially offset
by a net gain of $163,000 on the sale of a foreclosed property
during the third quarter of 2015.
The Company's efficiency ratio of 64.8% for the third quarter of
2015, compared to 65.3% for the linked quarter and 60.1% for the
third quarter of 2014, continues to be influenced by increased
investments for the future. While management expects the efficiency
ratio to remain above the long-term objective of 60% or less for
the short-term, the longstanding objective of aligning non-interest
expense growth with top line revenue growth remains a key component
of the Company's strategic plan.
The Company recorded a provision for loan and lease losses
totaling $287,000 for the third quarter of 2015, compared to
$520,000 in the second quarter of 2015. During the third quarter of
2014, the Company recorded a negative provision for loan and lease
losses of $89,000. During the third quarter of 2015 the Company
recognized net charge-offs of $127,000, representing an annualized
0.04% of average loans and leases. The Company recognized net
charge-offs of $15,000 in the second quarter of 2015 and net
recoveries of $4,000 during the third quarter of 2014. The
remaining increase in third quarter 2015 provision reflects
additions commensurate with growth, partially offset by a reduction
of the subjective loss factors applied in calculating the probable
losses within the loan and lease portfolio.
The Company’s effective tax rate of 31.98% for the third quarter
of 2015, compared to 33.71% for the linked quarter and 34.64% for
the third quarter of 2014, included a 199 basis points benefit
adjustment primarily due to updating state apportionment estimates
for actual apportionment rates based on the filing of the 2014 tax
returns during the quarter.
Balance Sheet and Asset Quality Strength
Period-end net loans and leases grew for the fourteenth
consecutive quarter, reaching a record $1.362 billion at September
30, 2015. Net loans and leases grew $27.7 million, or 8.3%
annualized, from June 30, 2015 and $333.9 million from September
30, 2014. Excluding $239.6 million in net loans and leases at
Alterra, net loans and leases were a record $1.122 billion at
September 30, 2015, increasing $94.3 million, or 9.2%, from the
same period last year. On an average basis, gross loans and leases
grew an annualized 13.3% during the third quarter of 2015, to
$1.363 billion, compared to the linked quarter. Growth reflects
continued and successful execution in deepening client
relationships, attracting new commercial clients, and capitalizing
on market opportunities.
Period-end in-market deposits - consisting of all transaction
accounts, money market accounts and non-wholesale deposits -
totaled $1.063 billion, comprising 69.0% of total deposits at
September 30, 2015. Period-end wholesale deposits were $476.6
million at September 30, 2015, consisting of brokered certificates
of deposit and deposits gathered through internet deposit listing
services of $409.4 million and $67.2 million, respectively. In
total, deposits measured $1.539 billion, growing $68.3 million, or
18.6% annualized, compared to the linked quarter. Average in-market
deposits were $1.042 billion, or 69.1% of total deposits, for the
third quarter of 2015. In order to reduce interest rate risk, the
Company uses wholesale deposits to efficiently match-fund
fixed-rate loans. Over time, management expects to maintain a ratio
of in-market deposits to total deposits in line with the Company's
recent historical range of 60%-70%.
Management continues to believe asset quality is a source of
strength that differentiates the Company from many of its peers.
During the third quarter of 2015, non-performing loans decreased to
$9.7 million, compared to $15.2 million at June 30, 2015, primarily
due to the successful restructuring of one impaired relationship
during the quarter, with no principal loss. As a result, the
Company's non-performing loans as a percentage of gross loans and
leases declined to 0.70% at September 30, 2015, from 1.12% as of
June 30, 2015. Non-performing loans as a percentage of total gross
loans and leases measured 1.52% at September 30, 2014. Likewise,
the ratio of non-performing assets to total assets decreased to
0.65% at September 30, 2015, compared to 1.01% and 1.12% at June
30, 2015 and September 30, 2014, respectively. Non-performing
assets totaled $11.3 million at September 30, 2015, compared to
$17.1 million and $15.9 million at June 30, 2015 and September 30,
2014, respectively.
Capital Strength
The Company's earnings continue to generate capital, and its
capital ratios exceed the highest required regulatory benchmark
levels. As of September 30, 2015, total capital to risk-weighted
assets was 11.29%, tier 1 capital to risk-weighted assets was
8.95%, tier 1 capital to average assets was 8.59% and common equity
tier 1 capital to risk-weighted assets was 8.34%. Capital ratios as
of September 30, 2015 reflect the Company's implementation of the
capital guidelines under Basel III, which became effective January
1, 2015.
Two-for-One Stock Split and Quarterly Dividend
As previously announced, during the third quarter of 2015 the
Company's Board of Directors declared a two-for-one stock split of
its common stock payable in the form of a 100% stock dividend. The
stock dividend was paid on August 28, 2015 to shareholders of
record at the close of business on August 18, 2015. The trading
price of the Company’s common stock on NASDAQ reflected the stock
split effective August 31, 2015. Share and per share data have been
adjusted for all historical periods.
In addition, as previously announced, during the third quarter
of 2015 the Company's Board of Directors declared a regular
quarterly cash dividend of $0.22 per share on a pre-split basis.
The cash dividend was paid on August 28, 2015 to shareholders of
record at the close of business on August 18, 2015. On a post-split
basis, the cash dividend represents what the Company believes is a
sustainable 22.0% payout ratio, measured against third quarter 2015
earnings per share of $0.50. The Board of Directors routinely
considers dividend declarations as part of its normal course of
business.
About First Business Financial Services, Inc.
First Business Financial Services, Inc. (NASDAQ:FBIZ) is a
Wisconsin-based bank holding company, focused on the unique needs
of businesses, business executives, and high net worth individuals.
First Business offers commercial banking, specialty finance, and
private wealth management solutions, and because of its niche
focus, is able to provide its clients with unmatched expertise,
accessibility, and responsiveness. For additional information,
visit www.firstbusiness.com or call
608-238-8008.
This press release includes “forward-looking” statements related
to the Company that can generally be identified as describing the
Company’s future plans, expectations, objectives or goals. Such
forward-looking statements are subject to risks and uncertainties
that could cause actual results or outcomes to differ materially
from those currently anticipated. These forward-looking statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. For further information
about the factors that could affect the Company’s future results,
please see the Company’s 2014 annual report on Form 10-K, quarterly
reports on Form 10-Q and other filings with the Securities and
Exchange Commission.
SELECTED FINANCIAL CONDITION DATA
(Unaudited) |
|
As of |
(in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
122,671 |
|
|
$ |
88,848 |
|
|
$ |
141,887 |
|
|
$ |
103,237 |
|
|
$ |
174,498 |
|
Securities available-for-sale, at
fair value |
|
143,729 |
|
|
146,342 |
|
|
142,951 |
|
|
144,698 |
|
|
142,427 |
|
Securities held-to-maturity, at
amortized cost |
|
38,364 |
|
|
39,428 |
|
|
40,599 |
|
|
41,563 |
|
|
42,522 |
|
Loans held for sale |
|
2,910 |
|
|
1,274 |
|
|
2,396 |
|
|
1,340 |
|
|
— |
|
Loans and leases receivable |
|
1,377,172 |
|
|
1,349,290 |
|
|
1,294,540 |
|
|
1,279,427 |
|
|
1,041,816 |
|
Allowance for loan and lease
losses |
|
(15,359 |
) |
|
(15,199 |
) |
|
(14,694 |
) |
|
(14,329 |
) |
|
(13,930 |
) |
Loans and leases, net |
|
1,361,813 |
|
|
1,334,091 |
|
|
1,279,846 |
|
|
1,265,098 |
|
|
1,027,886 |
|
Premises and equipment, net |
|
3,889 |
|
|
3,998 |
|
|
3,883 |
|
|
3,943 |
|
|
1,198 |
|
Foreclosed properties |
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
|
106 |
|
Cash surrender value of bank-owned
life insurance |
|
28,029 |
|
|
27,785 |
|
|
27,548 |
|
|
27,314 |
|
|
23,772 |
|
Investment in Federal Home Loan
Bank and Federal Reserve Bank stock, at cost |
|
2,843 |
|
|
2,891 |
|
|
2,798 |
|
|
2,340 |
|
|
1,349 |
|
Goodwill and other intangible
assets |
|
12,244 |
|
|
12,133 |
|
|
12,011 |
|
|
11,944 |
|
|
— |
|
Accrued interest receivable and
other assets |
|
26,029 |
|
|
24,920 |
|
|
25,192 |
|
|
26,217 |
|
|
13,809 |
|
Total assets |
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
|
$ |
1,427,567 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
In-market deposits |
|
$ |
1,062,753 |
|
|
$ |
1,026,588 |
|
|
$ |
1,054,828 |
|
|
$ |
1,010,928 |
|
|
$ |
859,114 |
|
Wholesale deposits |
|
476,617 |
|
|
444,480 |
|
|
430,973 |
|
|
427,340 |
|
|
410,086 |
|
Total deposits |
|
1,539,370 |
|
|
1,471,068 |
|
|
1,485,801 |
|
|
1,438,268 |
|
|
1,269,200 |
|
Federal Home Loan Bank and other
borrowings |
|
36,354 |
|
|
47,401 |
|
|
34,448 |
|
|
33,994 |
|
|
22,936 |
|
Junior subordinated notes |
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
Accrued interest payable and other
liabilities |
|
10,147 |
|
|
10,493 |
|
|
8,424 |
|
|
9,062 |
|
|
6,924 |
|
Total liabilities |
|
1,596,186 |
|
|
1,539,277 |
|
|
1,538,988 |
|
|
1,491,639 |
|
|
1,309,375 |
|
Total stockholders’ equity |
|
147,967 |
|
|
144,287 |
|
|
141,689 |
|
|
137,748 |
|
|
118,192 |
|
Total liabilities and
stockholders’ equity |
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
|
$ |
1,427,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF INCOME
(Unaudited) |
|
As of and for the Three Months
Ended |
|
As of and for the Nine Months
Ended |
(Dollars in thousands, except per share
amounts) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
September 30, 2015 |
|
September 30, 2014 |
|
Total interest
income |
|
$ |
18,135 |
|
|
$ |
17,520 |
|
|
$ |
18,216 |
|
|
$ |
16,863 |
|
|
$ |
13,871 |
|
|
$ |
53,871 |
|
|
$ |
40,838 |
|
|
Total interest
expense |
|
3,525 |
|
|
3,332 |
|
|
3,286 |
|
|
3,268 |
|
|
2,936 |
|
|
10,143 |
|
|
8,303 |
|
|
Net interest income |
|
14,610 |
|
|
14,188 |
|
|
14,930 |
|
|
13,595 |
|
|
10,935 |
|
|
43,728 |
|
|
32,535 |
|
|
Provision for loan and
lease losses |
|
287 |
|
|
520 |
|
|
684 |
|
|
1,236 |
|
|
(89 |
) |
|
1,491 |
|
|
— |
|
|
Net interest income after provision
for loan and lease losses |
|
14,323 |
|
|
13,668 |
|
|
14,246 |
|
|
12,359 |
|
|
11,024 |
|
|
42,237 |
|
|
32,535 |
|
|
Trust and investment
services fee income |
|
1,251 |
|
|
1,279 |
|
|
1,207 |
|
|
1,119 |
|
|
1,137 |
|
|
3,737 |
|
|
3,315 |
|
|
Gain on sale of SBA
loans |
|
927 |
|
|
842 |
|
|
505 |
|
|
318 |
|
|
— |
|
|
2,274 |
|
|
— |
|
|
Gain on sale of
residential mortgage loans |
|
244 |
|
|
222 |
|
|
148 |
|
|
74 |
|
|
— |
|
|
614 |
|
|
— |
|
|
Service charges on
deposits |
|
705 |
|
|
693 |
|
|
696 |
|
|
682 |
|
|
620 |
|
|
2,094 |
|
|
1,787 |
|
|
Loan fees |
|
486 |
|
|
499 |
|
|
502 |
|
|
421 |
|
|
386 |
|
|
1,487 |
|
|
1,156 |
|
|
Other |
|
489 |
|
|
591 |
|
|
790 |
|
|
351 |
|
|
316 |
|
|
1,870 |
|
|
880 |
|
|
Total non-interest income |
|
4,102 |
|
|
4,126 |
|
|
3,848 |
|
|
2,965 |
|
|
2,459 |
|
|
12,076 |
|
|
7,138 |
|
|
Compensation |
|
7,320 |
|
|
6,924 |
|
|
7,354 |
|
|
6,486 |
|
|
5,193 |
|
|
21,598 |
|
|
14,991 |
|
|
Occupancy |
|
486 |
|
|
486 |
|
|
500 |
|
|
428 |
|
|
324 |
|
|
1,472 |
|
|
963 |
|
|
Professional fees |
|
1,268 |
|
|
1,482 |
|
|
911 |
|
|
638 |
|
|
570 |
|
|
3,661 |
|
|
1,777 |
|
|
Data processing |
|
587 |
|
|
655 |
|
|
530 |
|
|
483 |
|
|
389 |
|
|
1,772 |
|
|
1,227 |
|
|
Marketing |
|
693 |
|
|
701 |
|
|
642 |
|
|
542 |
|
|
409 |
|
|
2,036 |
|
|
1,120 |
|
|
Equipment |
|
308 |
|
|
298 |
|
|
308 |
|
|
250 |
|
|
145 |
|
|
914 |
|
|
400 |
|
|
FDIC Insurance |
|
260 |
|
|
220 |
|
|
213 |
|
|
216 |
|
|
179 |
|
|
693 |
|
|
542 |
|
|
Net collateral
liquidation costs |
|
22 |
|
|
78 |
|
|
302 |
|
|
44 |
|
|
32 |
|
|
402 |
|
|
276 |
|
|
Net (gain) loss on
foreclosed properties |
|
(163 |
) |
|
1 |
|
|
(16 |
) |
|
(5 |
) |
|
(9 |
) |
|
(178 |
) |
|
(5 |
) |
|
Merger-related
costs |
|
— |
|
|
33 |
|
|
78 |
|
|
566 |
|
|
104 |
|
|
111 |
|
|
424 |
|
|
Other |
|
1,203 |
|
|
1,096 |
|
|
910 |
|
|
479 |
|
|
711 |
|
|
3,209 |
|
|
1,933 |
|
|
Total non-interest expense |
|
11,984 |
|
|
11,974 |
|
|
11,732 |
|
|
10,127 |
|
|
8,047 |
|
|
35,690 |
|
|
23,648 |
|
|
Income before tax
expense |
|
6,441 |
|
|
5,820 |
|
|
6,362 |
|
|
5,197 |
|
|
5,436 |
|
|
18,623 |
|
|
16,025 |
|
|
Income tax expense |
|
2,060 |
|
|
1,962 |
|
|
2,170 |
|
|
1,453 |
|
|
1,883 |
|
|
6,192 |
|
|
5,630 |
|
|
Net income |
|
$ |
4,381 |
|
|
$ |
3,858 |
|
|
$ |
4,192 |
|
|
$ |
3,744 |
|
|
$ |
3,553 |
|
|
$ |
12,431 |
|
|
$ |
10,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
$ |
0.44 |
|
|
$ |
0.45 |
|
|
$ |
1.43 |
|
|
$ |
1.32 |
|
|
Diluted earnings |
|
0.50 |
|
|
0.45 |
|
|
0.48 |
|
|
0.44 |
|
|
0.45 |
|
|
1.43 |
|
|
1.31 |
|
|
Dividends declared |
|
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.105 |
|
|
0.105 |
|
|
0.33 |
|
|
0.315 |
|
|
Book value |
|
17.01 |
|
|
16.64 |
|
|
16.34 |
|
|
15.88 |
|
|
14.93 |
|
|
17.01 |
|
|
14.93 |
|
|
Tangible book
value |
|
15.60 |
|
|
15.24 |
|
|
14.95 |
|
|
14.51 |
|
|
14.93 |
|
|
15.60 |
|
|
14.93 |
|
|
Weighted-average common
shares outstanding(1) |
|
8,546,563 |
|
|
8,523,418 |
|
|
8,525,127 |
|
|
8,282,999 |
|
|
7,739,918 |
|
|
8,538,219 |
|
|
7,727,300 |
|
|
Weighted-average
diluted common shares outstanding(1) |
|
8,546,563 |
|
|
8,523,418 |
|
|
8,529,658 |
|
|
8,297,508 |
|
|
7,783,612 |
|
|
8,539,705 |
|
|
7,771,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excluding participating securities
NET INTEREST INCOME ANALYSIS
(Unaudited) |
|
For the Three Months Ended |
(Dollars in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
September 30, 2014 |
|
|
Averagebalance |
|
Interest |
|
Averageyield/rate(4) |
|
Average balance |
|
Interest |
|
Averageyield/rate(4) |
|
Averagebalance |
|
Interest |
|
Averageyield/rate(4) |
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
and other mortgage loans(1) |
|
$ |
856,488 |
|
|
$ |
9,994 |
|
|
4.67 |
% |
|
$ |
824,250 |
|
|
$ |
9,672 |
|
|
4.69 |
% |
|
$ |
641,522 |
|
|
$ |
7,705 |
|
|
4.80 |
% |
Commercial and
industrial loans(1) |
|
454,184 |
|
|
6,741 |
|
|
5.94 |
% |
|
439,986 |
|
|
6,408 |
|
|
5.83 |
% |
|
326,579 |
|
|
4,769 |
|
|
5.84 |
% |
Direct financing
leases(1) |
|
28,352 |
|
|
328 |
|
|
4.63 |
% |
|
29,631 |
|
|
342 |
|
|
4.62 |
% |
|
30,278 |
|
|
351 |
|
|
4.64 |
% |
Consumer and other
loans(1) |
|
23,647 |
|
|
260 |
|
|
4.40 |
% |
|
24,888 |
|
|
258 |
|
|
4.15 |
% |
|
15,696 |
|
|
143 |
|
|
3.64 |
% |
Total loans and leases
receivable(1) |
|
1,362,671 |
|
|
17,323 |
|
|
5.09 |
% |
|
1,318,755 |
|
|
16,680 |
|
|
5.06 |
% |
|
1,014,075 |
|
|
12,968 |
|
|
5.12 |
% |
Mortgage-related
securities(2) |
|
152,763 |
|
|
602 |
|
|
1.57 |
% |
|
156,137 |
|
|
632 |
|
|
1.62 |
% |
|
158,832 |
|
|
716 |
|
|
1.80 |
% |
Other investment
securities(3) |
|
30,431 |
|
|
120 |
|
|
1.58 |
% |
|
28,912 |
|
|
116 |
|
|
1.60 |
% |
|
26,284 |
|
|
105 |
|
|
1.60 |
% |
FHLB and FRB stock |
|
3,175 |
|
|
22 |
|
|
2.69 |
% |
|
2,926 |
|
|
20 |
|
|
2.73 |
% |
|
1,349 |
|
|
2 |
|
|
0.57 |
% |
Short-term
investments |
|
67,716 |
|
|
68 |
|
|
0.41 |
% |
|
66,035 |
|
|
72 |
|
|
0.44 |
% |
|
70,633 |
|
|
80 |
|
|
0.45 |
% |
Total interest-earning assets |
|
1,616,756 |
|
|
18,135 |
|
|
4.49 |
% |
|
1,572,765 |
|
|
17,520 |
|
|
4.46 |
% |
|
1,271,173 |
|
|
13,871 |
|
|
4.36 |
% |
Non-interest-earning
assets |
|
100,863 |
|
|
|
|
|
|
93,477 |
|
|
|
|
|
|
63,485 |
|
|
|
|
|
Total assets |
|
$ |
1,717,619 |
|
|
|
|
|
|
$ |
1,666,242 |
|
|
|
|
|
|
$ |
1,334,658 |
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts |
|
$ |
138,489 |
|
|
84 |
|
|
0.24 |
% |
|
$ |
105,582 |
|
|
63 |
|
|
0.24 |
% |
|
$ |
84,434 |
|
|
47 |
|
|
0.22 |
% |
Money market |
|
587,063 |
|
|
829 |
|
|
0.56 |
% |
|
605,195 |
|
|
841 |
|
|
0.56 |
% |
|
484,402 |
|
|
627 |
|
|
0.52 |
% |
Certificates of
deposit |
|
102,477 |
|
|
204 |
|
|
0.80 |
% |
|
111,192 |
|
|
219 |
|
|
0.79 |
% |
|
44,423 |
|
|
115 |
|
|
1.04 |
% |
Wholesale deposits |
|
466,516 |
|
|
1,668 |
|
|
1.43 |
% |
|
428,080 |
|
|
1,470 |
|
|
1.37 |
% |
|
422,618 |
|
|
1,616 |
|
|
1.53 |
% |
Total interest-bearing
deposits |
|
1,294,545 |
|
|
2,785 |
|
|
0.86 |
% |
|
1,250,049 |
|
|
2,593 |
|
|
0.83 |
% |
|
1,035,877 |
|
|
2,405 |
|
|
0.93 |
% |
FHLB advances |
|
17,503 |
|
|
30 |
|
|
0.67 |
% |
|
22,749 |
|
|
31 |
|
|
0.55 |
% |
|
1,304 |
|
|
1 |
|
|
0.16 |
% |
Other borrowings |
|
25,154 |
|
|
430 |
|
|
6.84 |
% |
|
25,556 |
|
|
430 |
|
|
6.73 |
% |
|
13,806 |
|
|
250 |
|
|
7.24 |
% |
Junior subordinated
notes |
|
10,315 |
|
|
280 |
|
|
10.86 |
% |
|
10,315 |
|
|
278 |
|
|
10.78 |
% |
|
10,315 |
|
|
280 |
|
|
10.86 |
% |
Total interest-bearing
liabilities |
|
1,347,517 |
|
|
3,525 |
|
|
1.05 |
% |
|
1,308,669 |
|
|
3,332 |
|
|
1.02 |
% |
|
1,061,302 |
|
|
2,936 |
|
|
1.11 |
% |
Non-interest-bearing
demand deposit accounts |
|
213,712 |
|
|
|
|
|
|
205,508 |
|
|
|
|
|
|
148,017 |
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
9,520 |
|
|
|
|
|
|
8,252 |
|
|
|
|
|
|
7,908 |
|
|
|
|
|
Total liabilities |
|
1,570,749 |
|
|
|
|
|
|
1,522,429 |
|
|
|
|
|
|
1,217,227 |
|
|
|
|
|
Stockholders’
equity |
|
146,870 |
|
|
|
|
|
|
143,813 |
|
|
|
|
|
|
117,431 |
|
|
|
|
|
Total liabilities and stockholders’
equity |
|
$ |
1,717,619 |
|
|
|
|
|
|
$ |
1,666,242 |
|
|
|
|
|
|
$ |
1,334,658 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
14,610 |
|
|
|
|
|
|
$ |
14,188 |
|
|
|
|
|
|
$ |
10,935 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
3.25 |
% |
Net interest-earning
assets |
|
$ |
269,239 |
|
|
|
|
|
|
$ |
264,096 |
|
|
|
|
|
|
$ |
209,871 |
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The average balances of loans and leases include
non-performing loans and leases. Interest income related to
non-performing loans and leases is recognized when collected.(2)
Includes amortized cost basis of assets available for sale and held
to maturity.(3) Yields on tax-exempt municipal obligations are not
presented on a tax-equivalent basis in this table. (4) Represents
annualized yields/rates.
NET INTEREST INCOME ANALYSIS (CONTINUED)
(Unaudited) |
|
For the Nine Months Ended September
30, |
(Dollars in
thousands) |
|
2015 |
|
2014 |
|
|
Average balance |
|
Interest |
|
Averageyield/rate(4) |
|
Average balance |
|
Interest |
|
Averageyield/rate(4) |
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
and other mortgage loans(1) |
|
$ |
832,042 |
|
|
$ |
29,535 |
|
|
4.73 |
% |
|
$ |
638,187 |
|
|
$ |
22,904 |
|
|
4.79 |
% |
Commercial and
industrial loans(1) |
|
440,390 |
|
|
19,973 |
|
|
6.05 |
% |
|
316,209 |
|
|
13,769 |
|
|
5.81 |
% |
Direct financing
leases(1) |
|
30,229 |
|
|
1,053 |
|
|
4.64 |
% |
|
27,945 |
|
|
965 |
|
|
4.60 |
% |
Consumer and other
loans(1) |
|
24,213 |
|
|
767 |
|
|
4.22 |
% |
|
16,603 |
|
|
456 |
|
|
3.66 |
% |
Total loans and leases
receivable(1) |
|
1,326,874 |
|
|
51,328 |
|
|
5.16 |
% |
|
998,944 |
|
|
38,094 |
|
|
5.08 |
% |
Mortgage-related
securities(2) |
|
154,734 |
|
|
1,896 |
|
|
1.63 |
% |
|
155,488 |
|
|
2,208 |
|
|
1.89 |
% |
Other investment
securities(3) |
|
29,213 |
|
|
350 |
|
|
1.60 |
% |
|
28,556 |
|
|
335 |
|
|
1.56 |
% |
FHLB and FRB stock |
|
2,902 |
|
|
60 |
|
|
2.74 |
% |
|
1,346 |
|
|
4 |
|
|
0.44 |
% |
Short-term
investments |
|
75,469 |
|
|
237 |
|
|
0.42 |
% |
|
50,768 |
|
|
197 |
|
|
0.52 |
% |
Total interest-earning assets |
|
1,589,192 |
|
|
53,871 |
|
|
4.52 |
% |
|
1,235,102 |
|
|
40,838 |
|
|
4.41 |
% |
Non-interest-earning
assets |
|
96,889 |
|
|
|
|
|
|
59,104 |
|
|
|
|
|
Total assets |
|
$ |
1,686,081 |
|
|
|
|
|
|
$ |
1,294,206 |
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts |
|
$ |
117,242 |
|
|
205 |
|
|
0.23 |
% |
|
$ |
81,039 |
|
|
137 |
|
|
0.23 |
% |
Money market |
|
605,906 |
|
|
2,523 |
|
|
0.56 |
% |
|
465,708 |
|
|
1,785 |
|
|
0.51 |
% |
Certificates of
deposit |
|
112,602 |
|
|
643 |
|
|
0.76 |
% |
|
47,536 |
|
|
350 |
|
|
0.98 |
% |
Wholesale deposits |
|
439,744 |
|
|
4,576 |
|
|
1.39 |
% |
|
410,757 |
|
|
4,639 |
|
|
1.51 |
% |
Total interest-bearing
deposits |
|
1,275,494 |
|
|
7,947 |
|
|
0.83 |
% |
|
1,005,040 |
|
|
6,911 |
|
|
0.92 |
% |
FHLB advances |
|
16,569 |
|
|
85 |
|
|
0.68 |
% |
|
4,604 |
|
|
6 |
|
|
0.16 |
% |
Other borrowings |
|
24,948 |
|
|
1,279 |
|
|
6.84 |
% |
|
10,297 |
|
|
555 |
|
|
7.19 |
% |
Junior subordinated
notes |
|
10,315 |
|
|
832 |
|
|
10.76 |
% |
|
10,315 |
|
|
831 |
|
|
10.76 |
% |
Total interest-bearing
liabilities |
|
1,327,326 |
|
|
10,143 |
|
|
1.02 |
% |
|
1,030,256 |
|
|
8,303 |
|
|
1.07 |
% |
Non-interest-bearing
demand deposit accounts |
|
206,547 |
|
|
|
|
|
|
142,302 |
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
8,646 |
|
|
|
|
|
|
7,406 |
|
|
|
|
|
Total liabilities |
|
1,542,519 |
|
|
|
|
|
|
1,179,964 |
|
|
|
|
|
Stockholders’
equity |
|
143,562 |
|
|
|
|
|
|
114,242 |
|
|
|
|
|
Total liabilities and stockholders’
equity |
|
$ |
1,686,081 |
|
|
|
|
|
|
$ |
1,294,206 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
43,728 |
|
|
|
|
|
|
$ |
32,535 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
3.34 |
% |
Net interest-earning
assets |
|
$ |
261,866 |
|
|
|
|
|
|
$ |
204,846 |
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.67 |
% |
|
|
|
|
|
3.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The average balances of loans and leases include
non-performing loans and leases. Interest income related to
non-performing loans and leases is recognized when collected.(2)
Includes amortized cost basis of assets available for sale and held
to maturity.(3) Yields on tax-exempt municipal obligations are not
presented on a tax-equivalent basis in this table. (4) Represents
annualized yields/rates.
SELECTED FINANCIAL TRENDS
PERFORMANCE RATIOS
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
(Unaudited) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
September 30, 2015 |
|
September 30, 2014 |
Return on average
assets (annualized) |
|
1.02 |
% |
|
0.93 |
% |
|
1.00 |
% |
|
0.95 |
% |
|
1.06 |
% |
|
0.98 |
% |
|
1.07 |
% |
Return on average
equity (annualized) |
|
11.93 |
% |
|
10.73 |
% |
|
11.98 |
% |
|
10.92 |
% |
|
12.10 |
% |
|
11.55 |
% |
|
12.13 |
% |
Efficiency ratio |
|
64.82 |
% |
|
65.28 |
% |
|
62.47 |
% |
|
61.11 |
% |
|
60.15 |
% |
|
64.18 |
% |
|
59.62 |
% |
Interest rate
spread |
|
3.44 |
% |
|
3.44 |
% |
|
3.63 |
% |
|
3.49 |
% |
|
3.25 |
% |
|
3.50 |
% |
|
3.34 |
% |
Net interest
margin |
|
3.61 |
% |
|
3.61 |
% |
|
3.79 |
% |
|
3.67 |
% |
|
3.44 |
% |
|
3.67 |
% |
|
3.51 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
119.98 |
% |
|
120.18 |
% |
|
119.02 |
% |
|
119.86 |
% |
|
119.77 |
% |
|
119.73 |
% |
|
119.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS
(Unaudited) |
|
As of |
(Dollars in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Non-performing loans
and leases |
|
$ |
9,707 |
|
|
$ |
15,198 |
|
|
$ |
9,352 |
|
|
$ |
9,792 |
|
|
$ |
15,837 |
|
Foreclosed properties,
net |
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
|
106 |
|
Total non-performing assets |
|
11,339 |
|
|
17,052 |
|
|
10,918 |
|
|
11,485 |
|
|
15,943 |
|
Performing troubled
debt restructurings |
|
7,852 |
|
|
1,944 |
|
|
1,972 |
|
|
2,003 |
|
|
556 |
|
Total impaired assets |
|
$ |
19,191 |
|
|
$ |
18,996 |
|
|
$ |
12,890 |
|
|
$ |
13,488 |
|
|
$ |
16,499 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases as a percent of total gross loans and leases |
|
0.70 |
% |
|
1.12 |
% |
|
0.72 |
% |
|
0.76 |
% |
|
1.52 |
% |
Non-performing assets
as a percent of total gross loans and leases plus foreclosed
properties |
|
0.82 |
% |
|
1.26 |
% |
|
0.84 |
% |
|
0.89 |
% |
|
1.53 |
% |
Non-performing assets
as a percent of total assets |
|
0.65 |
% |
|
1.01 |
% |
|
0.65 |
% |
|
0.70 |
% |
|
1.12 |
% |
Allowance for loan and
lease losses as a percent of total gross loans and leases |
|
1.11 |
% |
|
1.12 |
% |
|
1.13 |
% |
|
1.12 |
% |
|
1.34 |
% |
Allowance for loan and
lease losses as a percent of non-performing loans |
|
158.22 |
% |
|
100.01 |
% |
|
157.12 |
% |
|
146.33 |
% |
|
87.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
Criticized assets: |
|
|
|
|
|
|
|
|
|
|
Special mention |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Substandard |
|
11,144 |
|
|
10,633 |
|
|
22,626 |
|
|
25,493 |
|
|
26,147 |
|
Doubtful |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Foreclosed properties, net |
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
|
106 |
|
Total criticized assets |
|
$ |
12,776 |
|
|
$ |
12,487 |
|
|
$ |
24,192 |
|
|
$ |
27,186 |
|
|
$ |
26,253 |
|
Criticized assets to
total assets |
|
0.73 |
% |
|
0.74 |
% |
|
1.44 |
% |
|
1.67 |
% |
|
1.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS (RECOVERIES)
(Unaudited) |
|
For the Three Months Ended |
|
For the Nine Months Ended |
(Dollars in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
September 30, 2015 |
|
September 30, 2014 |
Charge-offs |
|
$ |
138 |
|
|
$ |
84 |
|
|
$ |
324 |
|
|
$ |
1,231 |
|
|
$ |
2 |
|
|
$ |
546 |
|
|
$ |
2 |
|
|
Recoveries |
|
(11 |
) |
|
(69 |
) |
|
(5 |
) |
|
(393 |
) |
|
(6 |
) |
|
(85 |
) |
|
(31 |
) |
|
Net charge-offs
(recoveries) |
|
$ |
127 |
|
|
$ |
15 |
|
|
$ |
319 |
|
|
$ |
838 |
|
|
$ |
(4 |
) |
|
$ |
461 |
|
|
$ |
(29 |
) |
|
Net charge-offs
(recoveries) as a percent of average gross loans and leases
(annualized) |
|
0.04 |
% |
|
— |
% |
|
0.10 |
% |
|
0.28 |
% |
|
— |
% |
|
0.05 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
|
As of and for the Three Months
Ended |
(Unaudited) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Total capital to
risk-weighted assets (1) |
|
11.29 |
% |
|
11.11 |
% |
|
11.40 |
% |
|
12.13 |
% |
|
13.97 |
% |
Tier I capital to
risk-weighted assets (1) |
|
8.95 |
% |
|
8.78 |
% |
|
8.98 |
% |
|
9.52 |
% |
|
10.84 |
% |
Common equity tier I
capital to risk-weighted assets (1) |
|
8.34 |
% |
|
8.16 |
% |
|
8.34 |
% |
|
N/A |
|
N/A |
Tier I capital to
average assets (1) |
|
8.59 |
% |
|
8.66 |
% |
|
8.42 |
% |
|
8.71 |
% |
|
9.56 |
% |
Tangible common equity
to tangible assets |
|
7.84 |
% |
|
7.91 |
% |
|
7.77 |
% |
|
7.78 |
% |
|
8.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The September 30, 2015 data is estimated.
SELECTED OTHER INFORMATION
(Unaudited) |
|
As of |
(in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Trust assets under
management |
|
$ |
791,150 |
|
|
$ |
800,615 |
|
|
$ |
814,226 |
|
|
$ |
773,192 |
|
|
$ |
741,210 |
|
Trust assets under
administration |
|
187,495 |
|
|
197,343 |
|
|
195,148 |
|
|
186,505 |
|
|
186,212 |
|
Total trust assets |
|
$ |
978,645 |
|
|
$ |
997,958 |
|
|
$ |
1,009,374 |
|
|
$ |
959,697 |
|
|
$ |
927,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILIATIONS
Certain financial information provided in this release is
determined by methods other than in accordance with generally
accepted accounting principles (United States) (“GAAP”). Although
the Company believes that these non-GAAP financial measures provide
a greater understanding of its business, these measures are not
necessarily comparable to similar measures that may be presented by
other companies.
TANGIBLE BOOK VALUE
“Tangible book value per share” is a non-GAAP measure
representing tangible common equity divided by total common shares
outstanding. “Tangible common equity” itself is a non-GAAP measure
representing common stockholders’ equity reduced by intangible
assets, if any. The Company’s management believes that this measure
is important to many investors in the marketplace who are
interested in period-to-period changes in book value per common
share exclusive of changes in intangible assets. The information
provided below reconciles tangible book value per share and
tangible common equity to their most comparable GAAP measures.
(Unaudited) |
|
As of |
(Dollars in
thousands, except per share amounts) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Common stockholders’
equity |
|
$ |
147,967 |
|
|
$ |
144,287 |
|
|
$ |
141,689 |
|
|
$ |
137,748 |
|
|
$ |
118,192 |
|
Goodwill and other
intangible assets |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
|
— |
|
Tangible common
equity |
|
$ |
135,723 |
|
|
$ |
132,154 |
|
|
$ |
129,678 |
|
|
$ |
125,804 |
|
|
$ |
118,192 |
|
Common shares
outstanding |
|
8,698,775 |
|
|
8,669,836 |
|
|
8,672,322 |
|
|
8,671,854 |
|
|
7,918,230 |
|
Book value per
share |
|
$ |
17.01 |
|
|
$ |
16.64 |
|
|
$ |
16.34 |
|
|
$ |
15.88 |
|
|
$ |
14.93 |
|
Tangible book value per
share |
|
15.60 |
|
|
15.24 |
|
|
14.95 |
|
|
14.51 |
|
|
14.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS
‘‘Tangible common equity to tangible assets’’ is defined as the
ratio of common stockholders’ equity reduced by intangible assets,
if any, divided by total assets reduced by intangible assets, if
any. The Company’s management believes that this measure is
important to many investors in the marketplace who are interested
in the relative changes from period to period in common equity and
total assets, each exclusive of changes in intangible assets. The
information below reconciles tangible common equity and tangible
assets to their most comparable GAAP measures.
(Unaudited) |
|
As of |
(Dollars in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Common stockholders’
equity |
|
$ |
147,967 |
|
|
$ |
144,287 |
|
|
$ |
141,689 |
|
|
$ |
137,748 |
|
|
$ |
118,192 |
|
Goodwill and other
intangible assets |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
|
— |
|
Tangible common
equity |
|
$ |
135,723 |
|
|
$ |
132,154 |
|
|
$ |
129,678 |
|
|
$ |
125,804 |
|
|
$ |
118,192 |
|
Total assets |
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
|
$ |
1,427,567 |
|
Goodwill and other
intangible assets |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
|
— |
|
Tangible assets |
|
$ |
1,731,909 |
|
|
$ |
1,671,431 |
|
|
$ |
1,668,666 |
|
|
$ |
1,617,443 |
|
|
$ |
1,427,567 |
|
Tangible common equity
to tangible assets |
|
7.84 |
% |
|
7.91 |
% |
|
7.77 |
% |
|
7.78 |
% |
|
8.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO
“Efficiency ratio” is a non-GAAP measure representing
non-interest expense excluding the effects of losses or gains on
foreclosed properties, other discrete items that are unrelated to
the Company’s primary business activities and amortization of other
intangible assets, if any, divided by operating revenue, which is
equal to net interest income plus non-interest income less realized
gains or losses on securities, if any. In the judgment of the
Company’s management, the adjustments made to non-interest expense
and operating revenue allow investors and analysts to better assess
the Company’s operating expenses in relation to its core operating
revenue by removing the volatility that is associated with certain
one-time items and other discrete items that are unrelated to its
business. The information provided below reconciles the efficiency
ratio to its most comparable GAAP measure.
(Unaudited) |
|
For the Three Months Ended |
|
For the Nine Months Ended |
(Dollars in
thousands) |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
September 30, 2015 |
|
September 30, 2014 |
Total non-interest
expense |
|
$ |
11,984 |
|
|
$ |
11,974 |
|
|
$ |
11,732 |
|
|
$ |
10,127 |
|
|
$ |
8,047 |
|
|
$ |
35,690 |
|
|
$ |
23,648 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (gain) on foreclosed
properties |
|
(163 |
) |
|
1 |
|
|
(16 |
) |
|
(5 |
) |
|
(9 |
) |
|
(178 |
) |
|
(5 |
) |
Amortization of other intangible
assets |
|
18 |
|
|
18 |
|
|
18 |
|
|
12 |
|
|
— |
|
|
55 |
|
|
— |
|
Total operating
expense |
|
$ |
12,129 |
|
|
$ |
11,955 |
|
|
$ |
11,730 |
|
|
$ |
10,120 |
|
|
$ |
8,056 |
|
|
$ |
35,813 |
|
|
$ |
23,653 |
|
Net interest
income |
|
$ |
14,610 |
|
|
$ |
14,188 |
|
|
$ |
14,930 |
|
|
$ |
13,595 |
|
|
$ |
10,935 |
|
|
$ |
43,728 |
|
|
$ |
32,535 |
|
Total non-interest
income |
|
4,102 |
|
|
4,126 |
|
|
3,848 |
|
|
2,965 |
|
|
2,459 |
|
|
12,076 |
|
|
7,138 |
|
Total operating
revenue |
|
$ |
18,712 |
|
|
$ |
18,314 |
|
|
$ |
18,778 |
|
|
$ |
16,560 |
|
|
$ |
13,394 |
|
|
$ |
55,804 |
|
|
$ |
39,673 |
|
Efficiency ratio |
|
64.82 |
% |
|
65.28 |
% |
|
62.47 |
% |
|
61.11 |
% |
|
60.15 |
% |
|
64.18 |
% |
|
59.62 |
% |
CONTACT: First Business Financial Services, Inc.
James F. Ropella, Senior Vice President
and Chief Financial Officer
608-232-5970
jropella@firstbusiness.com
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