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 solid fourth quarter and year-to-date 2015 earnings,
driven by the Company’s strong loan and deposit growth, as well as
enhanced performance and efficiency from strategic investments in
talent and technology.
The results underscore the value and considerable potential of
the November 2014 acquisition of Alterra as the entire Company
benefited from enhanced execution of Alterra’s relationship-based
SBA strategy across First Business’s footprint as a catalyst for
client acquisition, as well as a driver of growth in loans,
non-interest bearing deposits and non-interest income.
Highlights for the quarter ended December 31, 2015 include:
- Net income for the fourth quarter of 2015 totaled $4.1
million, an increase of 9%, compared to $3.7
million in the fourth quarter of 2014.
- Diluted earnings per common share increased
to $0.47 for the fourth quarter of 2015, compared
to $0.44 for the fourth quarter of 2014.
- Annualized return on average assets and annualized return on
average equity measured 0.93% and 10.85%, respectively, for the
fourth quarter of 2015, compared to 0.95% and 10.92%, respectively,
for the fourth quarter of 2014.
- Top line revenue, consisting of net interest income and
non-interest income, increased 20% to a record $19.8 million,
compared to $16.6 million for the fourth quarter of 2014.
- The Company's fourth quarter efficiency ratio improved to
58.75%, compared to 64.82% in the linked quarter and 61.11% for the
fourth quarter of 2014.
- Period-end loans and leases receivable net of allowance for
loan and lease losses grew for the fifteenth consecutive quarter to
a record $1.415 billion, up 12% from December 31, 2014.
- Net interest margin measured 3.63% for the fourth quarter of
2015, compared to 3.61% for the linked quarter and 3.67% for the
fourth quarter of 2014.
- Net charge-offs were $938,000 in the fourth quarter
of 2015, compared to net charge-offs of $838,000 in the
fourth quarter of 2014.
- Non-performing assets as a percent of total assets increased
to 1.34% at December 31, 2015 from 0.70% at
December 31, 2014.
- The effective tax rate for the fourth quarter of 2015 was
34.86%, compared to 31.98% in the linked quarter and 27.96% in the
fourth quarter of 2014.
“2015 represented a year of investment in both talent and
technology as we continue to develop First Business into a scalable
franchise,” said Corey Chambas, President and Chief Executive
Officer. “As evidenced by our exceptional core earnings, and our
loan and deposit growth in the fourth quarter, we’re already
starting to see a return on these investments. We also made
significant strides in expanding Alterra’s relationship-based SBA
platform across our entire footprint and we are in a great position
to continue this in 2016, as indicated by our expanding
pipeline.”
The Company earned net income of $4.1 million in the fourth
quarter of 2015, compared to $4.4 million in the third quarter
of 2015 and $3.7 million in the fourth quarter of 2014. Diluted
earnings per common share were $0.47 for the fourth quarter of
2015, compared to $0.50 for the linked quarter and $0.44 for the
fourth 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.
The Company's net income for the year ended December 31, 2015
was a record $16.5 million, or $1.90 per diluted common share,
compared to $14.1 million, or $1.75 per diluted common share,
earned for the year ended December 31, 2014.
During the fourth quarter of 2015, Alterra contributed $3.1
million in net interest income, including $316,000 related to the
net accretion/amortization of purchase accounting adjustments, $2.1
million in non-interest income, $2.6 million in non-interest
expense and $1.3 million in loan loss provision, netting to a total
of $1.3 million in pre-tax income to First Business's results. In
the third quarter of 2015, Alterra produced $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, netting to a total of
$1.5 million in pre-tax income to First Business's results. During
the fourth quarter of 2014, which included two months’ contribution
from Alterra, Alterra contributed $2.0 million in net interest
income, including $392,000 related to the net
accretion/amortization of purchase accounting adjustments, $567,000
in non-interest income, $1.5 million in non-interest expense and
$337,000 in loan loss provision, netting to a total of $638,000 in
pre-tax income to First Business's results.
Results of Operations
Net interest income of $14.9 million increased 2.1%
compared to the linked quarter and 9.7% compared to the fourth
quarter of 2014. The increase from the linked quarter was primarily
due to a $48.4 million increase in average loans and leases and a
two basis point increase in net interest margin.
The net interest margin in the fourth quarter was 3.63% compared
to 3.61% in the third quarter of 2015 and 3.67% in the fourth
quarter of 2014. Fourth quarter 2015 net interest margin included
eight basis points related to the net accretion/amortization of
purchase accounting adjustments, while the linked quarter margin
and the fourth quarter 2014 margin included nine and 11 basis
points, respectively. Excluding the net accretion/amortization of
the purchase accounting adjustments, fourth quarter 2015 net
interest margin improved by three basis points from the linked
quarter, principally due to loan and lease growth and the
corresponding decrease in excess funds held at the Federal Reserve.
Management expects the net accretion/amortization to remain
volatile in future quarters but generally with a declining effect
on net interest margin. As of December 31, 2015, $954,000 and
$355,000 of purchase accounting discounts and premiums,
respectively, remain outstanding. 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 or the accumulation of
significant short-term deposit inflows.
Non-interest income of $4.9 million for the fourth quarter of
2015 increased 20.3% from the third quarter of 2015 and 66.4% from
the fourth quarter of 2014, which included only two months’
contribution from Alterra. Alterra contributed $2.1 million in
non-interest income during the fourth quarter of 2015, including
$1.5 million in gains on the sale of SBA loans, $115,000 in gains
on the sale of residential mortgage loans and $230,000 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, with approximately
30% of the fourth quarter gain on sale of SBA loans related to
credits originated outside Alterra’s Kansas City market. Trust and
investment services income totaled $1.2 million, decreasing $34,000
compared to the linked quarter; however, business development
efforts remained strong as trust assets under management and
administration measured a record $1.021 billion at December 31,
2015, compared to $978.6 million at September 30, 2015 and $959.7
million at December 31, 2014.
Non-interest expense for the fourth quarter of 2015 was $11.7
million, a decrease of 2.5% compared to the linked quarter and an
increase of 15.4% compared to the fourth quarter of 2014. Fourth
quarter 2015 compensation expense decreased compared to the linked
quarter primarily due to a reduction to the estimate of the 2015
annual incentive bonus plan. Compared to the linked quarter,
general other non-interest expenses, specifically professional
fees, decreased in line with expectations as new technology
platforms are now largely in place. The significant increase in
non-interest expense year over year is principally due to talent
acquisition as the Company meaningfully invested in people
throughout 2015, ending the year with 242 full-time equivalent
employees, an increase of 27, or 12.6%, from December 31, 2014.
Management expects to continue investing in personnel, products and
technology to support its growth strategies and initiatives.
The Company's efficiency ratio of 58.75% for the fourth quarter
of 2015 declined from 64.82% for the linked quarter and 61.11% for
the fourth quarter of 2014. The fourth quarter of 2015 benefited
from the non-recurring reduction in incentive compensation related
to the Company’s 2015 financial performance. Management expects the
efficiency ratio to trend towards the Company’s long-term objective
of 60% in future quarters, reflecting revenue growth, operating
efficiencies and enhanced effectiveness achieved through previous
and ongoing investments.
For the full year 2015, net charge-offs as a percentage of
average loans and leases measured 0.10%, compared to 0.08% for
2014. In the fourth quarter of 2015, the Company recorded a
provision for loan and lease losses totaling $1.9 million, compared
to $287,000 in the linked quarter and $1.2 million in the fourth
quarter of 2014. Net charge-offs of $938,000 represented an
annualized 0.27% of average loans and leases for the fourth quarter
of 2015. This compares to annualized net charge-offs measuring
0.04% and 0.28% of average loans and leases in the linked quarter
and fourth quarter of 2014, respectively. The fourth quarter 2015
provision included a $653,000 charge-off related to one commercial
real estate loan that was not previously specifically reserved for,
in addition to a $621,000 increase in specific reserves on a
previously identified impaired loan related to the energy
sector.
The effective tax rate was 34.86% in the fourth quarter of 2015,
compared to 31.98% in the linked quarter and 27.96% in the fourth
quarter of 2014. The effective tax rate for the year ended December
31, 2015 was 33.65% compared to 33.38% for the year ended December
31, 2014. The third quarter of 2015 was lower primarily due to
adjustments based on the filing of the 2014 tax returns. The fourth
quarter of 2014 was lower due to the recognition of federal tax
credits related to the Company’s participation in a community
development program.
Balance Sheet and Asset Quality Strength
Period-end net loans and leases grew for the fifteenth
consecutive quarter, reaching a record $1.415 billion at December
31, 2015. Net loans and leases increased $52.8 million,
or 3.9%, from September 30, 2015 and $149.6 million, or
11.8%, from December 31, 2014. On an average basis, gross
loans and leases increased 3.6% during the fourth quarter of
2015, to $1.411 billion, compared to the linked quarter.
Growth reflects the successful execution of the Company's strategic
plan, including increased sales to existing clients, 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 -
increased to $1.090 billion, or 69.1% of total deposits, at
December 31, 2015. Period-end wholesale deposits were $487.5
million at December 31, 2015, consisting of brokered certificates
of deposit and deposits gathered through internet deposit listing
services of $413.2 million and $74.3 million, respectively. 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,
despite a recent increase in non-performing assets. During the
fourth quarter of 2015 total non-performing assets increased to
$24.0 million, a $12.6 million increase from $11.3 million as of
September 30, 2015, principally due to downgrading one $6.2 million
restructured relationship to non-performing. This relationship,
which was previously reported as impaired in the second and third
quarters of 2015, is directly related to the energy sector.
Management believes the remaining increase in non-performing assets
is not systemic in nature or indicative of a trend but rather due
to downgrading a small number of unrelated credits.
As of December 31, 2015, the Company’s direct exposure to the
energy sector consisted of $10.0 million in loans and leases
receivable, or 0.70% of total gross loans and leases, with an
associated reserve for loan and lease losses totaling 6.63%. Of
this population, $7.8 million was considered non-performing as of
year end. In January 2016, $1.8 million of the total non-performing
energy exposure was paid off in full.
Capital Strength
The Company's earnings continue to generate capital, and its
capital ratios exceed the highest required regulatory benchmark
levels. As of December 31, 2015, total capital to risk-weighted
assets was 11.11%, tier 1 capital to risk-weighted assets was
8.81%, tier 1 capital to average assets was 8.63% and common equity
tier 1 capital to risk-weighted assets was 8.22%. Capital ratios as
of December 31, 2015 reflect the Company's implementation of the
capital guidelines under Basel III, which became effective January
1, 2015.
Quarterly Dividend
As previously announced, during the fourth quarter of 2015 the
Company's Board of Directors declared a regular quarterly dividend
of $0.11 per share. The dividend was paid
on November 23, 2015 to shareholders of record at
the close of business on November 12, 2015. Measured
against fourth quarter 2015 diluted earnings per share
of $0.47, the dividend represents what the Company believes is
a sustainable 23% payout ratio. 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 release may include forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995, which
reflect First Business’s current views with respect to future
events and financial performance. Forward-looking statements are
not based on historical information, but rather are related to
future operations, strategies, financial results or other
developments. Forward-looking statements are based on management’s
expectations as well as certain assumptions and estimates made by,
and information available to, management at the time the statements
are made. Those statements are based on general assumptions and are
subject to various risks, uncertainties and other factors that may
cause actual results to differ materially from the views, beliefs
and projections expressed in such statements. Such statements are
subject to risks and uncertainties, including among other
things:
- Competitive pressures among depository and other financial
institutions nationally and in our market areas may increase
significantly.
- Adverse changes in the economy or business conditions, either
nationally or in our market areas, could increase credit-related
losses and expenses and/or limit growth.
- Increases in defaults by borrowers and other delinquencies
could result in increases in our provision for losses on loans and
related expenses.
- Our inability to manage growth effectively, including the
successful expansion of our customer support, administrative
infrastructure and internal management systems, could adversely
affect our results of operations and prospects.
- Fluctuations in interest rates and market prices could reduce
our net interest margin and asset valuations and increase our
expenses.
- The consequences of continued bank acquisitions and mergers in
our market areas, resulting in fewer but much larger and
financially stronger competitors, could increase competition for
financial services to our detriment.
- Changes in legislative or regulatory requirements applicable to
us and our subsidiaries could increase costs, limit certain
operations and adversely affect results of operations.
- Changes in tax requirements, including tax rate changes, new
tax laws and revised tax law interpretations may increase our tax
expense or adversely affect our customers' businesses.
- System failure or breaches of our network security, including
with respect to our internet banking activities, could subject us
to increased operating costs and other liabilities.
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) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
113,564 |
|
|
$ |
122,671 |
|
|
$ |
88,848 |
|
|
$ |
141,887 |
|
|
$ |
103,237 |
|
Securities available-for-sale, at
fair value |
|
140,548 |
|
|
143,729 |
|
|
146,342 |
|
|
142,951 |
|
|
144,698 |
|
Securities held-to-maturity, at
amortized cost |
|
37,282 |
|
|
38,364 |
|
|
39,428 |
|
|
40,599 |
|
|
41,563 |
|
Loans held for sale |
|
2,702 |
|
|
2,910 |
|
|
1,274 |
|
|
2,396 |
|
|
1,340 |
|
Loans and leases receivable |
|
1,430,965 |
|
|
1,377,172 |
|
|
1,349,290 |
|
|
1,294,540 |
|
|
1,279,427 |
|
Allowance for loan and lease
losses |
|
(16,316 |
) |
|
(15,359 |
) |
|
(15,199 |
) |
|
(14,694 |
) |
|
(14,329 |
) |
Loans and leases, net |
|
1,414,649 |
|
|
1,361,813 |
|
|
1,334,091 |
|
|
1,279,846 |
|
|
1,265,098 |
|
Premises and equipment, net |
|
3,954 |
|
|
3,889 |
|
|
3,998 |
|
|
3,883 |
|
|
3,943 |
|
Foreclosed properties |
|
1,677 |
|
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
Cash surrender value of bank-owned
life insurance |
|
28,298 |
|
|
28,029 |
|
|
27,785 |
|
|
27,548 |
|
|
27,314 |
|
Investment in Federal Home Loan
Bank and Federal Reserve Bank stock, at cost |
|
2,843 |
|
|
2,843 |
|
|
2,891 |
|
|
2,798 |
|
|
2,340 |
|
Goodwill and other intangible
assets |
|
12,493 |
|
|
12,244 |
|
|
12,133 |
|
|
12,011 |
|
|
11,944 |
|
Accrued interest receivable and
other assets |
|
25,626 |
|
|
26,029 |
|
|
24,920 |
|
|
25,192 |
|
|
26,217 |
|
Total assets |
|
$ |
1,783,636 |
|
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
In-market deposits |
|
$ |
1,089,748 |
|
|
$ |
1,062,753 |
|
|
$ |
1,026,588 |
|
|
$ |
1,054,828 |
|
|
$ |
1,010,928 |
|
Wholesale deposits |
|
487,483 |
|
|
476,617 |
|
|
444,480 |
|
|
430,973 |
|
|
427,340 |
|
Total deposits |
|
1,577,231 |
|
|
1,539,370 |
|
|
1,471,068 |
|
|
1,485,801 |
|
|
1,438,268 |
|
Federal Home Loan Bank and other
borrowings |
|
35,226 |
|
|
36,354 |
|
|
47,401 |
|
|
34,448 |
|
|
33,994 |
|
Junior subordinated notes |
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
|
10,315 |
|
Accrued interest payable and other
liabilities |
|
10,032 |
|
|
10,147 |
|
|
10,493 |
|
|
8,424 |
|
|
9,062 |
|
Total liabilities |
|
1,632,804 |
|
|
1,596,186 |
|
|
1,539,277 |
|
|
1,538,988 |
|
|
1,491,639 |
|
Total stockholders’ equity |
|
150,832 |
|
|
147,967 |
|
|
144,287 |
|
|
141,689 |
|
|
137,748 |
|
Total liabilities and
stockholders’ equity |
|
$ |
1,783,636 |
|
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
STATEMENTS OF INCOME
(Unaudited) |
|
As of and for the Three Months
Ended |
|
As of and for the Year Ended |
(Dollars in thousands, except per share
amounts) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Total interest
income |
|
$ |
18,600 |
|
|
$ |
18,135 |
|
|
$ |
17,520 |
|
|
$ |
18,216 |
|
|
$ |
16,863 |
|
|
$ |
72,471 |
|
|
$ |
57,701 |
|
Total interest
expense |
|
3,688 |
|
|
3,525 |
|
|
3,332 |
|
|
3,286 |
|
|
3,268 |
|
|
13,831 |
|
|
11,571 |
|
Net interest income |
|
14,912 |
|
|
14,610 |
|
|
14,188 |
|
|
14,930 |
|
|
13,595 |
|
|
58,640 |
|
|
46,130 |
|
Provision for loan and
lease losses |
|
1,895 |
|
|
287 |
|
|
520 |
|
|
684 |
|
|
1,236 |
|
|
3,386 |
|
|
1,236 |
|
Net interest income after provision
for loan and lease losses |
|
13,017 |
|
|
14,323 |
|
|
13,668 |
|
|
14,246 |
|
|
12,359 |
|
|
55,254 |
|
|
44,894 |
|
Trust and investment
services fee income |
|
1,217 |
|
|
1,251 |
|
|
1,279 |
|
|
1,207 |
|
|
1,119 |
|
|
4,954 |
|
|
4,434 |
|
Gain on sale of SBA
loans |
|
1,725 |
|
|
927 |
|
|
842 |
|
|
505 |
|
|
318 |
|
|
3,999 |
|
|
318 |
|
Gain on sale of
residential mortgage loans |
|
115 |
|
|
244 |
|
|
222 |
|
|
148 |
|
|
74 |
|
|
729 |
|
|
74 |
|
Service charges on
deposits |
|
718 |
|
|
705 |
|
|
693 |
|
|
696 |
|
|
682 |
|
|
2,812 |
|
|
2,469 |
|
Loan fees |
|
700 |
|
|
486 |
|
|
499 |
|
|
502 |
|
|
421 |
|
|
2,187 |
|
|
1,577 |
|
Other |
|
460 |
|
|
489 |
|
|
591 |
|
|
790 |
|
|
351 |
|
|
2,330 |
|
|
1,231 |
|
Total non-interest income |
|
4,935 |
|
|
4,102 |
|
|
4,126 |
|
|
3,848 |
|
|
2,965 |
|
|
17,011 |
|
|
10,103 |
|
Compensation |
|
6,945 |
|
|
7,320 |
|
|
6,924 |
|
|
7,354 |
|
|
6,486 |
|
|
28,543 |
|
|
21,477 |
|
Occupancy |
|
501 |
|
|
486 |
|
|
486 |
|
|
500 |
|
|
428 |
|
|
1,973 |
|
|
1,391 |
|
Professional fees |
|
1,121 |
|
|
1,268 |
|
|
1,482 |
|
|
911 |
|
|
638 |
|
|
4,782 |
|
|
2,415 |
|
Data processing |
|
606 |
|
|
587 |
|
|
655 |
|
|
530 |
|
|
483 |
|
|
2,378 |
|
|
1,710 |
|
Marketing |
|
549 |
|
|
693 |
|
|
701 |
|
|
642 |
|
|
542 |
|
|
2,585 |
|
|
1,662 |
|
Equipment |
|
316 |
|
|
308 |
|
|
298 |
|
|
308 |
|
|
250 |
|
|
1,230 |
|
|
650 |
|
FDIC Insurance |
|
227 |
|
|
260 |
|
|
220 |
|
|
213 |
|
|
216 |
|
|
920 |
|
|
758 |
|
Net collateral
liquidation costs |
|
70 |
|
|
22 |
|
|
78 |
|
|
302 |
|
|
44 |
|
|
472 |
|
|
320 |
|
Net loss (gain) on
foreclosed properties |
|
7 |
|
|
(163 |
) |
|
1 |
|
|
(16 |
) |
|
(5 |
) |
|
(171 |
) |
|
(10 |
) |
Merger-related
costs |
|
— |
|
|
— |
|
|
33 |
|
|
78 |
|
|
566 |
|
|
111 |
|
|
990 |
|
Other |
|
1,342 |
|
|
1,203 |
|
|
1,096 |
|
|
910 |
|
|
479 |
|
|
4,551 |
|
|
2,412 |
|
Total non-interest expense |
|
11,684 |
|
|
11,984 |
|
|
11,974 |
|
|
11,732 |
|
|
10,127 |
|
|
47,374 |
|
|
33,775 |
|
Income before tax
expense |
|
6,268 |
|
|
6,441 |
|
|
5,820 |
|
|
6,362 |
|
|
5,197 |
|
|
24,891 |
|
|
21,222 |
|
Income tax expense |
|
2,185 |
|
|
2,060 |
|
|
1,962 |
|
|
2,170 |
|
|
1,453 |
|
|
8,377 |
|
|
7,083 |
|
Net income |
|
$ |
4,083 |
|
|
$ |
4,381 |
|
|
$ |
3,858 |
|
|
$ |
4,192 |
|
|
$ |
3,744 |
|
|
$ |
16,514 |
|
|
$ |
14,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.47 |
|
|
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
0.48 |
|
|
$ |
0.44 |
|
|
$ |
1.90 |
|
|
$ |
1.76 |
|
Diluted earnings |
|
0.47 |
|
|
0.50 |
|
|
0.45 |
|
|
0.48 |
|
|
0.44 |
|
|
1.90 |
|
|
1.75 |
|
Dividends declared |
|
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.105 |
|
|
0.44 |
|
|
0.42 |
|
Book value |
|
17.34 |
|
|
17.01 |
|
|
16.64 |
|
|
16.34 |
|
|
15.88 |
|
|
17.34 |
|
|
15.88 |
|
Tangible book
value |
|
15.90 |
|
|
15.60 |
|
|
15.24 |
|
|
14.95 |
|
|
14.51 |
|
|
15.90 |
|
|
14.51 |
|
Weighted-average common
shares outstanding(1) |
|
8,558,810 |
|
|
8,546,563 |
|
|
8,523,418 |
|
|
8,525,127 |
|
|
8,282,999 |
|
|
8,549,176 |
|
|
7,869,956 |
|
Weighted-average
diluted common shares outstanding(1) |
|
8,558,810 |
|
|
8,546,563 |
|
|
8,523,418 |
|
|
8,529,658 |
|
|
8,297,508 |
|
|
8,550,322 |
|
|
7,906,767 |
|
(1) Excluding participating securities
NET INTEREST INCOME ANALYSIS
(Unaudited) |
|
For the Three Months Ended |
(Dollars in
thousands) |
|
December 31, 2015 |
|
September 30, 2015 |
|
December 31, 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) |
|
$ |
896,198 |
|
|
$ |
10,471 |
|
|
4.67 |
% |
|
$ |
856,488 |
|
|
$ |
9,994 |
|
|
4.67 |
% |
|
$ |
745,411 |
|
|
$ |
9,162 |
|
|
4.92 |
% |
Commercial and
industrial loans(1) |
|
461,295 |
|
|
6,695 |
|
|
5.81 |
% |
|
454,184 |
|
|
6,741 |
|
|
5.94 |
% |
|
381,202 |
|
|
6,192 |
|
|
6.50 |
% |
Direct financing
leases(1) |
|
30,227 |
|
|
341 |
|
|
4.51 |
% |
|
28,352 |
|
|
328 |
|
|
4.63 |
% |
|
33,698 |
|
|
403 |
|
|
4.78 |
% |
Consumer and other
loans(1) |
|
23,349 |
|
|
300 |
|
|
5.14 |
% |
|
23,647 |
|
|
260 |
|
|
4.40 |
% |
|
17,631 |
|
|
196 |
|
|
4.45 |
% |
Total loans and leases
receivable(1) |
|
1,411,069 |
|
|
17,807 |
|
|
5.05 |
% |
|
1,362,671 |
|
|
17,323 |
|
|
5.09 |
% |
|
1,177,942 |
|
|
15,953 |
|
|
5.42 |
% |
Mortgage-related
securities(2) |
|
148,576 |
|
|
594 |
|
|
1.60 |
% |
|
152,763 |
|
|
602 |
|
|
1.57 |
% |
|
158,091 |
|
|
686 |
|
|
1.74 |
% |
Other investment
securities(3) |
|
31,089 |
|
|
122 |
|
|
1.57 |
% |
|
30,431 |
|
|
120 |
|
|
1.58 |
% |
|
28,166 |
|
|
113 |
|
|
1.60 |
% |
FHLB and FRB stock |
|
2,841 |
|
|
21 |
|
|
3.07 |
% |
|
3,175 |
|
|
22 |
|
|
2.69 |
% |
|
2,004 |
|
|
10 |
|
|
1.96 |
% |
Short-term
investments |
|
50,850 |
|
|
56 |
|
|
0.44 |
% |
|
67,716 |
|
|
68 |
|
|
0.41 |
% |
|
116,283 |
|
|
101 |
|
|
0.35 |
% |
Total interest-earning assets |
|
1,644,425 |
|
|
18,600 |
|
|
4.52 |
% |
|
1,616,756 |
|
|
18,135 |
|
|
4.49 |
% |
|
1,482,486 |
|
|
16,863 |
|
|
4.55 |
% |
Non-interest-earning
assets |
|
104,396 |
|
|
|
|
|
|
100,863 |
|
|
|
|
|
|
92,439 |
|
|
|
|
|
Total assets |
|
$ |
1,748,821 |
|
|
|
|
|
|
$ |
1,717,619 |
|
|
|
|
|
|
$ |
1,574,925 |
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts |
|
$ |
150,234 |
|
|
92 |
|
|
0.24 |
% |
|
$ |
138,489 |
|
|
84 |
|
|
0.24 |
% |
|
$ |
90,836 |
|
|
48 |
|
|
0.21 |
% |
Money market |
|
593,749 |
|
|
808 |
|
|
0.54 |
% |
|
587,063 |
|
|
829 |
|
|
0.56 |
% |
|
575,266 |
|
|
768 |
|
|
0.53 |
% |
Certificates of
deposit |
|
87,110 |
|
|
182 |
|
|
0.84 |
% |
|
102,477 |
|
|
204 |
|
|
0.80 |
% |
|
98,111 |
|
|
186 |
|
|
0.76 |
% |
Wholesale deposits |
|
482,258 |
|
|
1,848 |
|
|
1.53 |
% |
|
466,516 |
|
|
1,668 |
|
|
1.43 |
% |
|
432,361 |
|
|
1,557 |
|
|
1.44 |
% |
Total interest-bearing
deposits |
|
1,313,351 |
|
|
2,930 |
|
|
0.89 |
% |
|
1,294,545 |
|
|
2,785 |
|
|
0.86 |
% |
|
1,196,574 |
|
|
2,559 |
|
|
0.86 |
% |
FHLB advances |
|
9,467 |
|
|
25 |
|
|
1.08 |
% |
|
17,503 |
|
|
30 |
|
|
0.67 |
% |
|
6,242 |
|
|
16 |
|
|
1.09 |
% |
Other borrowings |
|
26,979 |
|
|
453 |
|
|
6.72 |
% |
|
25,154 |
|
|
430 |
|
|
6.84 |
% |
|
23,748 |
|
|
412 |
|
|
6.94 |
% |
Junior subordinated
notes |
|
10,315 |
|
|
280 |
|
|
10.86 |
% |
|
10,315 |
|
|
280 |
|
|
10.86 |
% |
|
10,315 |
|
|
281 |
|
|
10.86 |
% |
Total interest-bearing
liabilities |
|
1,360,112 |
|
|
3,688 |
|
|
1.08 |
% |
|
1,347,517 |
|
|
3,525 |
|
|
1.05 |
% |
|
1,236,879 |
|
|
3,268 |
|
|
1.06 |
% |
Non-interest-bearing
demand deposit accounts |
|
227,965 |
|
|
|
|
|
|
213,712 |
|
|
|
|
|
|
191,438 |
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
10,260 |
|
|
|
|
|
|
9,520 |
|
|
|
|
|
|
9,436 |
|
|
|
|
|
Total liabilities |
|
1,598,337 |
|
|
|
|
|
|
1,570,749 |
|
|
|
|
|
|
1,437,753 |
|
|
|
|
|
Stockholders’
equity |
|
150,484 |
|
|
|
|
|
|
146,870 |
|
|
|
|
|
|
137,172 |
|
|
|
|
|
Total liabilities and stockholders’
equity |
|
$ |
1,748,821 |
|
|
|
|
|
|
$ |
1,717,619 |
|
|
|
|
|
|
$ |
1,574,925 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
14,912 |
|
|
|
|
|
|
$ |
14,610 |
|
|
|
|
|
|
$ |
13,595 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
3.49 |
% |
Net interest-earning
assets |
|
$ |
284,313 |
|
|
|
|
|
|
$ |
269,239 |
|
|
|
|
|
|
$ |
245,607 |
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.63 |
% |
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.67 |
% |
(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 Year Ended December 31, |
(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) |
|
$ |
848,213 |
|
|
$ |
40,006 |
|
|
4.72 |
% |
|
$ |
665,213 |
|
|
$ |
32,066 |
|
|
4.82 |
% |
Commercial and
industrial loans(1) |
|
445,659 |
|
|
26,668 |
|
|
5.98 |
% |
|
332,591 |
|
|
19,962 |
|
|
6.00 |
% |
Direct financing
leases(1) |
|
30,228 |
|
|
1,394 |
|
|
4.61 |
% |
|
29,395 |
|
|
1,367 |
|
|
4.65 |
% |
Consumer and other
loans(1) |
|
23,996 |
|
|
1,067 |
|
|
4.45 |
% |
|
16,862 |
|
|
652 |
|
|
3.87 |
% |
Total loans and leases
receivable(1) |
|
1,348,096 |
|
|
69,135 |
|
|
5.13 |
% |
|
1,044,061 |
|
|
54,047 |
|
|
5.18 |
% |
Mortgage-related
securities(2) |
|
153,182 |
|
|
2,490 |
|
|
1.63 |
% |
|
156,144 |
|
|
2,894 |
|
|
1.85 |
% |
Other investment
securities(3) |
|
29,686 |
|
|
472 |
|
|
1.59 |
% |
|
28,458 |
|
|
448 |
|
|
1.57 |
% |
FHLB and FRB stock |
|
2,886 |
|
|
81 |
|
|
2.82 |
% |
|
1,512 |
|
|
14 |
|
|
0.94 |
% |
Short-term
investments |
|
69,264 |
|
|
293 |
|
|
0.42 |
% |
|
67,281 |
|
|
298 |
|
|
0.44 |
% |
Total interest-earning assets |
|
1,603,114 |
|
|
72,471 |
|
|
4.52 |
% |
|
1,297,456 |
|
|
57,701 |
|
|
4.45 |
% |
Non-interest-earning
assets |
|
98,781 |
|
|
|
|
|
|
67,507 |
|
|
|
|
|
Total assets |
|
$ |
1,701,895 |
|
|
|
|
|
|
$ |
1,364,963 |
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts |
|
$ |
125,558 |
|
|
297 |
|
|
0.24 |
% |
|
$ |
83,508 |
|
|
185 |
|
|
0.22 |
% |
Money market |
|
602,842 |
|
|
3,331 |
|
|
0.55 |
% |
|
493,322 |
|
|
2,553 |
|
|
0.52 |
% |
Certificates of
deposit |
|
106,177 |
|
|
825 |
|
|
0.78 |
% |
|
60,284 |
|
|
536 |
|
|
0.89 |
% |
Wholesale deposits |
|
450,460 |
|
|
6,424 |
|
|
1.43 |
% |
|
416,202 |
|
|
6,196 |
|
|
1.49 |
% |
Total interest-bearing
deposits |
|
1,285,037 |
|
|
10,877 |
|
|
0.85 |
% |
|
1,053,316 |
|
|
9,470 |
|
|
0.90 |
% |
FHLB advances |
|
14,779 |
|
|
110 |
|
|
0.75 |
% |
|
5,017 |
|
|
22 |
|
|
0.45 |
% |
Other borrowings |
|
25,460 |
|
|
1,732 |
|
|
6.80 |
% |
|
13,688 |
|
|
967 |
|
|
7.06 |
% |
Junior subordinated
notes |
|
10,315 |
|
|
1,112 |
|
|
10.78 |
% |
|
10,315 |
|
|
1,112 |
|
|
10.78 |
% |
Total interest-bearing
liabilities |
|
1,335,591 |
|
|
13,831 |
|
|
1.04 |
% |
|
1,082,336 |
|
|
11,571 |
|
|
1.07 |
% |
Non-interest-bearing
demand deposit accounts |
|
211,945 |
|
|
|
|
|
|
154,687 |
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
9,049 |
|
|
|
|
|
|
7,918 |
|
|
|
|
|
Total liabilities |
|
1,556,585 |
|
|
|
|
|
|
1,244,941 |
|
|
|
|
|
Stockholders’
equity |
|
145,310 |
|
|
|
|
|
|
120,022 |
|
|
|
|
|
Total liabilities and stockholders’
equity |
|
$ |
1,701,895 |
|
|
|
|
|
|
$ |
1,364,963 |
|
|
|
|
|
Net interest
income |
|
|
|
$ |
58,640 |
|
|
|
|
|
|
$ |
46,130 |
|
|
|
Interest rate
spread |
|
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.38 |
% |
Net interest-earning
assets |
|
$ |
267,523 |
|
|
|
|
|
|
$ |
215,120 |
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.66 |
% |
|
|
|
|
|
3.56 |
% |
(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 Year Ended |
(Unaudited) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Return on average
assets (annualized) |
|
0.93 |
% |
|
1.02 |
% |
|
0.93 |
% |
|
1.00 |
% |
|
0.95 |
% |
|
0.97 |
% |
|
1.04 |
% |
Return on average
equity (annualized) |
|
10.85 |
% |
|
11.93 |
% |
|
10.73 |
% |
|
11.98 |
% |
|
10.92 |
% |
|
11.36 |
% |
|
11.78 |
% |
Efficiency ratio |
|
58.75 |
% |
|
64.82 |
% |
|
65.28 |
% |
|
62.47 |
% |
|
61.11 |
% |
|
62.75 |
% |
|
60.06 |
% |
Interest rate
spread |
|
3.44 |
% |
|
3.44 |
% |
|
3.44 |
% |
|
3.63 |
% |
|
3.49 |
% |
|
3.48 |
% |
|
3.38 |
% |
Net interest
margin |
|
3.63 |
% |
|
3.61 |
% |
|
3.61 |
% |
|
3.79 |
% |
|
3.67 |
% |
|
3.66 |
% |
|
3.56 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
120.90 |
% |
|
119.98 |
% |
|
120.18 |
% |
|
119.02 |
% |
|
119.86 |
% |
|
120.03 |
% |
|
119.88 |
% |
ASSET QUALITY RATIOS
(Unaudited) |
|
As of |
(Dollars in
thousands) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
Non-performing loans
and leases |
|
$ |
22,298 |
|
|
$ |
9,707 |
|
|
$ |
15,198 |
|
|
$ |
9,352 |
|
|
$ |
9,792 |
|
Foreclosed properties,
net |
|
1,677 |
|
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
Total non-performing assets |
|
23,975 |
|
|
11,339 |
|
|
17,052 |
|
|
10,918 |
|
|
11,485 |
|
Performing troubled
debt restructurings |
|
2,117 |
|
|
7,852 |
|
|
1,944 |
|
|
1,972 |
|
|
2,003 |
|
Total impaired assets |
|
$ |
26,092 |
|
|
$ |
19,191 |
|
|
$ |
18,996 |
|
|
$ |
12,890 |
|
|
$ |
13,488 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases as a percent of total gross loans and leases |
|
1.55 |
% |
|
0.70 |
% |
|
1.12 |
% |
|
0.72 |
% |
|
0.76 |
% |
Non-performing assets
as a percent of total gross loans and leases plus foreclosed
properties |
|
1.67 |
% |
|
0.82 |
% |
|
1.26 |
% |
|
0.84 |
% |
|
0.89 |
% |
Non-performing assets
as a percent of total assets |
|
1.34 |
% |
|
0.65 |
% |
|
1.01 |
% |
|
0.65 |
% |
|
0.70 |
% |
Allowance for loan and
lease losses as a percent of total gross loans and leases |
|
1.14 |
% |
|
1.11 |
% |
|
1.12 |
% |
|
1.13 |
% |
|
1.12 |
% |
Allowance for loan and
lease losses as a percent of non-performing loans |
|
73.18 |
% |
|
158.22 |
% |
|
100.01 |
% |
|
157.12 |
% |
|
146.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
Criticized assets: |
|
|
|
|
|
|
|
|
|
|
Special mention |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Substandard |
|
27,178 |
|
|
11,144 |
|
|
10,633 |
|
|
22,626 |
|
|
25,493 |
|
Doubtful |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Foreclosed properties, net |
|
1,677 |
|
|
1,632 |
|
|
1,854 |
|
|
1,566 |
|
|
1,693 |
|
Total criticized assets |
|
$ |
28,855 |
|
|
$ |
12,776 |
|
|
$ |
12,487 |
|
|
$ |
24,192 |
|
|
$ |
27,186 |
|
Criticized assets to
total assets |
|
1.62 |
% |
|
0.73 |
% |
|
0.74 |
% |
|
1.44 |
% |
|
1.67 |
% |
NET CHARGE-OFFS (RECOVERIES)
(Unaudited) |
|
For the Three Months Ended |
|
For the Year Ended |
(Dollars in
thousands) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Charge-offs |
|
$ |
967 |
|
|
$ |
138 |
|
|
$ |
84 |
|
|
$ |
324 |
|
|
$ |
1,231 |
|
|
$ |
1,513 |
|
|
$ |
1,233 |
|
Recoveries |
|
(29 |
) |
|
(11 |
) |
|
(69 |
) |
|
(5 |
) |
|
(393 |
) |
|
(114 |
) |
|
(425 |
) |
Net charge-offs |
|
$ |
938 |
|
|
$ |
127 |
|
|
$ |
15 |
|
|
$ |
319 |
|
|
$ |
838 |
|
|
$ |
1,399 |
|
|
$ |
808 |
|
Net charge-offs as a
percent of average gross loans and leases (annualized) |
|
0.27 |
% |
|
0.04 |
% |
|
— |
% |
|
0.10 |
% |
|
0.28 |
% |
|
0.10 |
% |
|
0.08 |
% |
CAPITAL RATIOS
|
|
As of and for the Three Months
Ended |
(Unaudited) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
Total capital to
risk-weighted assets |
|
11.11 |
% |
|
11.29 |
% |
|
11.11 |
% |
|
11.40 |
% |
|
12.13 |
% |
Tier I capital to
risk-weighted assets |
|
8.81 |
% |
|
8.95 |
% |
|
8.78 |
% |
|
8.98 |
% |
|
9.52 |
% |
Common equity tier I
capital to risk-weighted assets |
|
8.22 |
% |
|
8.34 |
% |
|
8.16 |
% |
|
8.34 |
% |
|
N/A |
|
Tier I capital to
average assets |
|
8.63 |
% |
|
8.59 |
% |
|
8.66 |
% |
|
8.42 |
% |
|
8.71 |
% |
Tangible common equity
to tangible assets |
|
7.81 |
% |
|
7.84 |
% |
|
7.91 |
% |
|
7.77 |
% |
|
7.78 |
% |
SELECTED OTHER INFORMATION
(Unaudited) |
|
As of |
(in
thousands) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
Trust assets under management |
|
$ |
817,926 |
|
|
$ |
791,150 |
|
|
$ |
800,615 |
|
|
$ |
814,226 |
|
|
$ |
773,192 |
|
Trust assets under
administration |
|
203,181 |
|
|
187,495 |
|
|
197,343 |
|
|
195,148 |
|
|
186,505 |
|
Total trust assets |
|
$ |
1,021,107 |
|
|
$ |
978,645 |
|
|
$ |
997,958 |
|
|
$ |
1,009,374 |
|
|
$ |
959,697 |
|
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) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
Common stockholders’
equity |
|
$ |
150,832 |
|
|
$ |
147,967 |
|
|
$ |
144,287 |
|
|
$ |
141,689 |
|
|
$ |
137,748 |
|
Goodwill and other
intangible assets |
|
(12,493 |
) |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
Tangible common
equity |
|
$ |
138,339 |
|
|
$ |
135,723 |
|
|
$ |
132,154 |
|
|
$ |
129,678 |
|
|
$ |
125,804 |
|
Common shares
outstanding |
|
8,699,410 |
|
|
8,698,755 |
|
|
8,669,836 |
|
|
8,672,322 |
|
|
8,671,854 |
|
Book value per
share |
|
$ |
17.34 |
|
|
$ |
17.01 |
|
|
$ |
16.64 |
|
|
$ |
16.34 |
|
|
$ |
15.88 |
|
Tangible book value per
share |
|
15.90 |
|
|
15.60 |
|
|
15.24 |
|
|
14.95 |
|
|
14.51 |
|
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) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
Common stockholders’
equity |
|
$ |
150,832 |
|
|
$ |
147,967 |
|
|
$ |
144,287 |
|
|
$ |
141,689 |
|
|
$ |
137,748 |
|
Goodwill and other
intangible assets |
|
(12,493 |
) |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
Tangible common
equity |
|
$ |
138,339 |
|
|
$ |
135,723 |
|
|
$ |
132,154 |
|
|
$ |
129,678 |
|
|
$ |
125,804 |
|
Total assets |
|
$ |
1,783,636 |
|
|
$ |
1,744,153 |
|
|
$ |
1,683,564 |
|
|
$ |
1,680,677 |
|
|
$ |
1,629,387 |
|
Goodwill and other
intangible assets |
|
(12,493 |
) |
|
(12,244 |
) |
|
(12,133 |
) |
|
(12,011 |
) |
|
(11,944 |
) |
Tangible assets |
|
$ |
1,771,143 |
|
|
$ |
1,731,909 |
|
|
$ |
1,671,431 |
|
|
$ |
1,668,666 |
|
|
$ |
1,617,443 |
|
Tangible common equity
to tangible assets |
|
7.81 |
% |
|
7.84 |
% |
|
7.91 |
% |
|
7.77 |
% |
|
7.78 |
% |
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 Year Ended |
(Dollars in
thousands) |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
Total non-interest
expense |
|
$ |
11,684 |
|
|
$ |
11,984 |
|
|
$ |
11,974 |
|
|
$ |
11,732 |
|
|
$ |
10,127 |
|
|
$ |
47,374 |
|
|
$ |
33,775 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (gain) on foreclosed
properties |
|
7 |
|
|
(163 |
) |
|
1 |
|
|
(16 |
) |
|
(5 |
) |
|
(171 |
) |
|
(10 |
) |
Amortization of other intangible
assets |
|
17 |
|
|
18 |
|
|
18 |
|
|
18 |
|
|
12 |
|
|
71 |
|
|
12 |
|
Total operating
expense |
|
$ |
11,660 |
|
|
$ |
12,129 |
|
|
$ |
11,955 |
|
|
$ |
11,730 |
|
|
$ |
10,120 |
|
|
$ |
47,474 |
|
|
$ |
33,773 |
|
Net interest
income |
|
$ |
14,912 |
|
|
$ |
14,610 |
|
|
$ |
14,188 |
|
|
$ |
14,930 |
|
|
$ |
13,595 |
|
|
$ |
58,640 |
|
|
$ |
46,130 |
|
Total non-interest
income |
|
4,935 |
|
|
4,102 |
|
|
4,126 |
|
|
3,848 |
|
|
2,965 |
|
|
17,011 |
|
|
10,103 |
|
Total operating
revenue |
|
$ |
19,847 |
|
|
$ |
18,712 |
|
|
$ |
18,314 |
|
|
$ |
18,778 |
|
|
$ |
16,560 |
|
|
$ |
75,651 |
|
|
$ |
56,233 |
|
Efficiency ratio |
|
58.75 |
% |
|
64.82 |
% |
|
65.28 |
% |
|
62.47 |
% |
|
61.11 |
% |
|
62.75 |
% |
|
60.06 |
% |
CONTACT: First Business Financial Services, Inc.
Edward G. Sloane, Jr.
Chief Financial Officer
608-232-5970
esloane@firstbusiness.com
First Business Financial... (NASDAQ:FBIZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
First Business Financial... (NASDAQ:FBIZ)
Historical Stock Chart
From Jul 2023 to Jul 2024