UMPQUA REPORTS FIRST QUARTER 2022 RESULTS
First quarter 2022 Results
- Net income of
$91.2 million , or$0.42 per common share - Operating net income of
$77.6 million , or$0.36 per common share - Non-PPP loan balances increased
$630.2 million or 2.8% - Deposit balances increased
$104.9 million or 0.4% - Provision for credit losses of
$4.8 million
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13.66% |
|
14.0% |
Net earnings per diluted |
|
Net income ($ in millions) |
|
Return on average tangible |
|
Total risk-based capital ratio |
CEO Commentary |
" |
–
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1Q22 HIGHLIGHTS (COMPARED TO 4Q21) |
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|
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Net Interest |
• Net interest income decreased by |
• Net interest margin was 3.14%, down one basis point from the prior period due entirely to lower PPP fees. The impact was nearly offset by higher average non-PPP loan balances and lower interest expense. |
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Non-Interest |
•
Non-interest income decreased by |
•
Non-interest expense decreased by |
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|
Credit |
• Net charge-offs remained low at 0.10% of average loans and leases (annualized). |
•
A provision expense of |
|
• Non-performing assets to total assets declined to 0.14%, down 3 bps from the prior quarter end. |
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Capital |
•
Estimated total risk-based capital ratio of 14.0% and estimated Tier 1 |
•
Paid a quarterly cash dividend of |
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Notable |
• Executing structural changes in the mortgage banking segment, inclusive of evaluating MSR hedges. |
•
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1Q22 KEY FINANCIAL DATA |
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PERFORMANCE METRICS |
1Q22 |
|
4Q21 |
|
1Q21 |
Return on average assets |
1.21% |
|
1.13% |
|
1.49% |
Return on average tangible common equity1 |
13.66% |
|
12.94% |
|
16.43% |
Operating return on average assets1 |
1.03% |
|
1.23% |
|
1.41% |
Operating return on average tangible common equity1 |
11.62% |
|
14.03% |
|
15.59% |
Net interest margin |
3.14% |
|
3.15% |
|
3.18% |
Efficiency ratio - consolidated |
59.02% |
|
63.10% |
|
56.74% |
Loan to deposit ratio |
86.05% |
|
84.80% |
|
85.61% |
|
|
|
|
|
|
INCOME STATEMENT |
1Q22 |
|
4Q21 |
|
1Q21 |
Net interest income |
|
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|
|
Provision (recapture) for credit losses |
|
|
( |
|
$— |
Non-interest income |
|
|
|
|
|
Non-interest expense |
|
|
|
|
|
Pre-provision net revenue1 |
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|
|
|
Operating pre-provision net revenue1 |
|
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|
|
Earnings per common share - diluted |
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Operating earnings per common share - diluted1 |
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Dividends paid per share |
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BALANCE SHEET |
1Q22 |
|
4Q21 |
|
1Q21 |
Total assets |
|
|
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|
|
Loans and leases |
|
|
|
|
|
Total deposits |
|
|
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|
Book value per common share |
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Tangible book value per share1 |
|
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|
|
|
Tangible book value per share, ex AOCI1 |
|
|
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|
Balance Sheet
Total consolidated assets were
Gross loans and leases were
Total deposits were
Net Interest Income
Net interest income was
The Company's net interest margin was 3.14% for the first quarter of 2022, down one basis point from 3.15% for the fourth quarter of 2021. The decrease is attributable to the aforementioned decline in PPP-related fees as the deployment of cash into loans and upward interest rate movements had a favorable impact on net interest margin in the first quarter of 2022 compared to the fourth quarter of 2021. Please refer to the Q1 2022 Earnings Presentation available on our website for additional net interest margin change details and interest rate sensitivity information.
Credit Quality
The allowance for credit losses was
Net charge-offs decreased by three basis points to 0.10% of average loans and leases (annualized) for the first quarter of 2022 as net charge-off activity within the FinPac portfolio remained below its historical average for the third consecutive quarter. As of
Non-interest Income
Non-interest income was
As detailed in our segment and non-GAAP disclosures, non-interest income for the Core Banking segment includes a fair value loss of
Revenue from the origination and sale of residential mortgages was
Over the next one-to-two quarters, we expect to put hedges in place to reduce the volatility of MSR fair value impacts on a net basis in future quarters. Additionally, we undertook structural changes in the mortgage banking segment in April, including a headcount reduction, to adjust our capacity and expense run rate to meet the origination volume we anticipate over the foreseeable future.
Non-interest Expense
Non-interest expense was
Capital
As of
AOCI has no effect on our regulatory capital ratios as the company opted to exclude it from our common equity tier 1 capital calculations. The Company's estimated total risk-based capital ratio was 14.0% and its estimated tier 1 common to risk weighted assets ratio was 11.3% as of
Segment Disclosures
Segment disclosures on pages 14-15 of this press release provide additional detail on the Company's two operating segments: Core Banking and Mortgage Banking.
The Core Banking segment includes all lines of business, except Mortgage Banking, including wholesale, retail, wealth management, as well as the operations, technology, and administrative functions of the Bank and
Earnings Conference Call Information
The Company will host its first quarter 2022 earnings conference call on
About
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the
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1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement. |
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2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement. |
TABLE INDEX |
|
|
Page |
Consolidated Statements of Operations |
7 |
Consolidated Balance Sheets |
8 |
Financial Highlights |
10 |
Loan & Lease Portfolio Balances and Mix |
11 |
Deposit Balances, Mix, and Select Account Details |
12 |
Credit Quality - Non-performing Assets |
13 |
Credit Quality - Allowance for Credit Losses |
13 |
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates |
15 |
Segments |
16 |
GAAP to Non-GAAP Reconciliation |
18 |
|
|||||||||||||
Consolidated Statements of Operations |
|||||||||||||
(Unaudited) |
|||||||||||||
|
Quarter Ended |
|
% Change |
||||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Seq. Quarter |
|
Year |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ 214,404 |
|
$ 221,501 |
|
$ 224,403 |
|
$ 223,470 |
|
$ 221,141 |
|
(3)% |
|
(3)% |
Interest and dividends on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
18,725 |
|
16,566 |
|
16,102 |
|
14,619 |
|
13,112 |
|
13% |
|
43% |
Exempt from federal income tax |
1,372 |
|
1,456 |
|
1,470 |
|
1,487 |
|
1,534 |
|
(6)% |
|
(11)% |
Dividends |
86 |
|
102 |
|
213 |
|
405 |
|
598 |
|
(16)% |
|
(86)% |
Temporary investments and interest bearing deposits |
1,353 |
|
1,229 |
|
1,237 |
|
774 |
|
624 |
|
10% |
|
117% |
Total interest income |
235,940 |
|
240,854 |
|
243,425 |
|
240,755 |
|
237,009 |
|
(2)% |
|
0% |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
3,916 |
|
4,357 |
|
5,100 |
|
7,016 |
|
10,678 |
|
(10)% |
|
(63)% |
Securities sold under agreement to |
63 |
|
48 |
|
88 |
|
68 |
|
76 |
|
31% |
|
(17)% |
Borrowings |
49 |
|
51 |
|
149 |
|
866 |
|
1,772 |
|
(4)% |
|
(97)% |
Junior subordinated debentures |
3,149 |
|
3,019 |
|
3,014 |
|
3,042 |
|
3,052 |
|
4% |
|
3% |
Total interest expense |
7,177 |
|
7,475 |
|
8,351 |
|
10,992 |
|
15,578 |
|
(4)% |
|
(54)% |
Net interest income |
228,763 |
|
233,379 |
|
235,074 |
|
229,763 |
|
221,431 |
|
(2)% |
|
3% |
Provision (recapture) for credit losses |
4,804 |
|
(736) |
|
(18,919) |
|
(22,996) |
|
— |
|
nm |
|
nm |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
11,583 |
|
11,188 |
|
10,941 |
|
10,310 |
|
9,647 |
|
4% |
|
20% |
Card-based fees |
8,708 |
|
9,355 |
|
9,111 |
|
10,274 |
|
7,374 |
|
(7)% |
|
18% |
Brokerage revenue |
11 |
|
31 |
|
31 |
|
1,135 |
|
3,915 |
|
(65)% |
|
(100)% |
Residential mortgage banking revenue, net |
60,786 |
|
43,185 |
|
34,150 |
|
44,443 |
|
65,033 |
|
41% |
|
(7)% |
Gain on sale of debt securities, net |
2 |
|
4 |
|
— |
|
— |
|
4 |
|
nm |
|
nm |
(Loss) gain on equity securities, net |
(2,661) |
|
(466) |
|
(343) |
|
4 |
|
(706) |
|
nm |
|
277% |
Gain on loan and lease sales, net |
2,337 |
|
4,816 |
|
4,208 |
|
5,318 |
|
1,373 |
|
(51)% |
|
70% |
BOLI income |
2,087 |
|
2,101 |
|
2,038 |
|
2,092 |
|
2,071 |
|
(1)% |
|
1% |
Other (loss) income |
(2,884) |
|
12,524 |
|
13,569 |
|
17,499 |
|
20,089 |
|
(123)% |
|
(114)% |
Total non-interest income |
79,969 |
|
82,738 |
|
73,705 |
|
91,075 |
|
108,800 |
|
(3)% |
|
(26)% |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
113,138 |
|
117,477 |
|
117,636 |
|
121,573 |
|
124,134 |
|
(4)% |
|
(9)% |
Occupancy and equipment, net |
34,829 |
|
34,310 |
|
33,944 |
|
34,657 |
|
34,635 |
|
2% |
|
1% |
Intangible amortization |
1,025 |
|
1,130 |
|
1,130 |
|
1,130 |
|
1,130 |
|
(9)% |
|
(9)% |
|
4,516 |
|
2,896 |
|
2,136 |
|
1,607 |
|
2,599 |
|
56% |
|
74% |
Merger related expenses |
2,278 |
|
15,183 |
|
— |
|
— |
|
— |
|
0% |
|
nm |
Other expenses |
26,644 |
|
28,715 |
|
28,907 |
|
30,433 |
|
25,094 |
|
(7)% |
|
6% |
Total non-interest expense |
182,430 |
|
199,711 |
|
183,753 |
|
189,400 |
|
187,592 |
|
(9)% |
|
(3)% |
Income before provision for income taxes |
121,498 |
|
117,142 |
|
143,945 |
|
154,434 |
|
142,639 |
|
4% |
|
(15)% |
Provision for income taxes |
30,341 |
|
28,788 |
|
35,879 |
|
38,291 |
|
34,902 |
|
5% |
|
(13)% |
Net income |
$ 91,157 |
|
$ 88,354 |
|
$ 108,066 |
|
$ 116,143 |
|
$ 107,737 |
|
3% |
|
(15)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares outstanding |
216,782 |
|
216,624 |
|
218,416 |
|
220,593 |
|
220,367 |
|
0 % |
|
(2)% |
Weighted average diluted shares outstanding |
217,392 |
|
217,356 |
|
218,978 |
|
221,022 |
|
220,891 |
|
0 % |
|
(2) % |
Earnings per common share – basic |
$ 0.42 |
|
$ 0.41 |
|
$ 0.49 |
|
$ 0.53 |
|
$ 0.49 |
|
2% |
|
(14)% |
Earnings per common share – diluted |
$ 0.42 |
|
$ 0.41 |
|
$ 0.49 |
|
$ 0.53 |
|
$ 0.49 |
|
2% |
|
(14)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% Change |
||
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Seq. Quarter |
|
Year |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 307,144 |
|
$ 222,015 |
|
$ 395,555 |
|
$ 397,526 |
|
$ 379,361 |
|
38% |
|
(19)% |
Interest bearing cash and temporary investments |
2,358,292 |
|
2,539,606 |
|
3,349,034 |
|
2,688,285 |
|
2,861,820 |
|
(7)% |
|
(18)% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at fair value |
78,966 |
|
81,214 |
|
81,575 |
|
82,099 |
|
82,771 |
|
(3)% |
|
(5)% |
Available for sale, at fair value |
3,638,080 |
|
3,870,435 |
|
3,723,171 |
|
3,473,950 |
|
3,167,825 |
|
(6)% |
|
15% |
Held to maturity, at amortized cost |
2,700 |
|
2,744 |
|
2,795 |
|
2,876 |
|
2,954 |
|
(2)% |
|
(9)% |
Loans held for sale |
309,946 |
|
353,105 |
|
352,466 |
|
429,052 |
|
376,481 |
|
(12)% |
|
(18)% |
Loans and leases |
22,975,761 |
|
22,553,180 |
|
21,969,940 |
|
22,143,739 |
|
22,160,860 |
|
2% |
|
4% |
Allowance for credit losses on loans and leases |
(248,564) |
|
(248,412) |
|
(257,560) |
|
(279,887) |
|
(311,283) |
|
0% |
|
(20)% |
Net loans and leases |
22,727,197 |
|
22,304,768 |
|
21,712,380 |
|
21,863,852 |
|
21,849,577 |
|
2% |
|
4% |
Restricted equity securities |
10,889 |
|
10,916 |
|
10,946 |
|
15,247 |
|
22,057 |
|
0% |
|
(51)% |
Premises and equipment, net |
167,369 |
|
171,125 |
|
172,624 |
|
172,546 |
|
176,571 |
|
(2)% |
|
(5)% |
Operating lease right-of-use assets |
87,333 |
|
82,366 |
|
88,379 |
|
95,030 |
|
100,643 |
|
6% |
|
(13)% |
|
— |
|
— |
|
— |
|
— |
|
2,715 |
|
nm |
|
(100)% |
Other intangible assets, net |
7,815 |
|
8,840 |
|
9,970 |
|
11,100 |
|
12,230 |
|
(12)% |
|
(36)% |
Residential mortgage servicing rights, at fair value |
165,807 |
|
123,615 |
|
105,834 |
|
102,699 |
|
100,413 |
|
34% |
|
65% |
Bank owned life insurance |
328,040 |
|
327,745 |
|
325,646 |
|
324,998 |
|
322,867 |
|
0% |
|
2% |
Deferred tax asset, net |
39,051 |
|
— |
|
8,402 |
|
— |
|
10,905 |
|
nm |
|
nm |
Other assets |
408,497 |
|
542,442 |
|
552,702 |
|
625,705 |
|
567,490 |
|
(25)% |
|
(28)% |
Total assets |
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
0% |
|
3% |
Securities sold under agreements to repurchase |
499,539 |
|
492,247 |
|
467,760 |
|
480,302 |
|
420,402 |
|
1% |
|
19% |
Borrowings |
6,290 |
|
6,329 |
|
6,367 |
|
111,405 |
|
281,444 |
|
(1)% |
|
(98)% |
Junior subordinated debentures, at fair value |
305,719 |
|
293,081 |
|
299,508 |
|
287,723 |
|
281,580 |
|
4% |
|
9% |
Junior subordinated debentures, at amortized cost |
87,984 |
|
88,041 |
|
88,098 |
|
88,155 |
|
88,212 |
|
0% |
|
0% |
Operating lease liabilities |
101,732 |
|
95,427 |
|
100,557 |
|
106,195 |
|
109,014 |
|
7% |
|
(7)% |
Deferred tax liability, net |
— |
|
4,353 |
|
— |
|
2,497 |
|
— |
|
(100)% |
|
nm |
Other liabilities |
328,677 |
|
317,503 |
|
298,413 |
|
288,819 |
|
287,326 |
|
4% |
|
14% |
Total liabilities |
28,029,528 |
|
27,891,666 |
|
28,169,100 |
|
27,518,649 |
|
27,354,811 |
|
0% |
|
2% |
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
3,443,266 |
|
3,444,849 |
|
3,442,085 |
|
3,517,641 |
|
3,515,248 |
|
0% |
|
(2)% |
Accumulated deficit |
(651,912) |
|
(697,338) |
|
(739,915) |
|
(801,954) |
|
(871,511) |
|
(7)% |
|
(25)% |
Accumulated other comprehensive (loss) income |
(183,756) |
|
1,759 |
|
20,209 |
|
50,629 |
|
38,132 |
|
nm |
|
nm |
Total shareholders' equity |
2,607,598 |
|
2,749,270 |
|
2,722,379 |
|
2,766,316 |
|
2,681,869 |
|
(5)% |
|
(3)% |
Total liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at period end |
216,967 |
|
216,626 |
|
216,622 |
|
220,626 |
|
220,491 |
|
0 % |
|
(2) % |
Book value per common share |
$ 12.02 |
|
$ 12.69 |
|
$ 12.57 |
|
$ 12.54 |
|
$ 12.16 |
|
(5)% |
|
(1)% |
Tangible book value per common share (1) |
$ 11.98 |
|
$ 12.65 |
|
$ 12.52 |
|
$ 12.49 |
|
$ 12.10 |
|
(5)% |
|
(1)% |
Tangible equity - common (1) |
$ 2,599,783 |
|
$ 2,740,430 |
|
$ 2,712,409 |
|
$ 2,755,216 |
|
$ 2,666,924 |
|
(5)% |
|
(3)% |
Tangible common equity to tangible assets (1) |
8.49% |
|
8.95% |
|
8.78% |
|
9.10% |
|
8.88% |
|
(0.46) |
|
(0.39) |
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See GAAP to Non-GAAP Reconciliation. |
|
||||||||||||||
Financial Highlights |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
Quarter Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
$ 0.21 |
|
$ 0.21 |
|
$ 0.21 |
|
$ 0.21 |
|
$ 0.21 |
|
0% |
|
0% |
Book value |
|
$ 12.02 |
|
$ 12.69 |
|
$ 12.57 |
|
$ 12.54 |
|
$ 12.16 |
|
(5)% |
|
(1)% |
Tangible book value (1) |
|
$ 11.98 |
|
$ 12.65 |
|
$ 12.52 |
|
$ 12.49 |
|
$ 12.10 |
|
(5)% |
|
(1)% |
Tangible book value, ex accumulated other |
|
$ 12.83 |
|
$ 12.64 |
|
$ 12.43 |
|
$ 12.26 |
|
$ 11.92 |
|
2% |
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
59.02% |
|
63.10% |
|
59.44% |
|
58.96% |
|
56.74% |
|
(4.08) |
|
2.28 |
Pre-provision net revenue (PPNR) ROAA (1) |
|
1.67% |
|
1.50% |
|
1.62% |
|
1.75% |
|
1.97% |
|
0.17 |
|
(0.30) |
Return on average assets (ROAA) |
|
1.21% |
|
1.13% |
|
1.40% |
|
1.54% |
|
1.49% |
|
0.08 |
|
(0.28) |
Return on average common equity |
|
13.62% |
|
12.90% |
|
15.82% |
|
17.25% |
|
16.33% |
|
0.72 |
|
(2.71) |
Return on average tangible common equity (1) |
|
13.66% |
|
12.94% |
|
15.88% |
|
17.33% |
|
16.43% |
|
0.72 |
|
(2.77) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios - Operating: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency ratio (1) |
|
62.02% |
|
59.61% |
|
58.94% |
|
56.89% |
|
57.87% |
|
2.41 |
|
4.15 |
Operating PPNR return on average assets (1) |
|
1.43% |
|
1.58% |
|
1.62% |
|
1.86% |
|
1.87% |
|
(0.15) |
|
(0.44) |
Operating return on average assets (1) |
|
1.03% |
|
1.23% |
|
1.40% |
|
1.63% |
|
1.41% |
|
(0.20) |
|
(0.38) |
Operating return on average common equity (1) |
|
11.58% |
|
13.98% |
|
15.82% |
|
18.16% |
|
15.50% |
|
(2.40) |
|
(3.92) |
Operating return on average tangible common equity (1) |
|
11.62% |
|
14.03% |
|
15.88% |
|
18.24% |
|
15.59% |
|
(2.41) |
|
(3.97) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Yields, Rates, & Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and leases |
|
3.79% |
|
3.94% |
|
4.02% |
|
3.99% |
|
4.02% |
|
(0.15) |
|
(0.23) |
Yield on earning assets (2) |
|
3.24% |
|
3.25% |
|
3.32% |
|
3.35% |
|
3.41% |
|
(0.01) |
|
(0.17) |
Cost of interest bearing deposits |
|
0.10% |
|
0.11% |
|
0.13% |
|
0.18% |
|
0.29% |
|
(0.01) |
|
(0.19) |
Cost of interest bearing liabilities |
|
0.18% |
|
0.18% |
|
0.20% |
|
0.27% |
|
0.38% |
|
— |
|
(0.20) |
Cost of total deposits |
|
0.06% |
|
0.06% |
|
0.08% |
|
0.11% |
|
0.17% |
|
— |
|
(0.11) |
Cost of total funding (3) |
|
0.11% |
|
0.11% |
|
0.12% |
|
0.16% |
|
0.24% |
|
— |
|
(0.13) |
Net interest margin (2) |
|
3.14% |
|
3.15% |
|
3.21% |
|
3.20% |
|
3.18% |
|
(0.01) |
|
(0.04) |
Average interest bearing cash / Average interest earning assets |
|
8.92% |
|
10.78% |
|
11.03% |
|
9.84% |
|
8.84% |
|
(1.86) |
|
0.08 |
Average loans and leases / Average interest earning assets |
|
76.85% |
|
74.70% |
|
74.78% |
|
76.52% |
|
77.26% |
|
2.15 |
|
(0.41) |
Average loans and leases / Average total deposits |
|
84.77% |
|
82.12% |
|
82.07% |
|
84.59% |
|
86.55% |
|
2.65 |
|
(1.78) |
Average non-interest bearing deposits / Average total deposits |
|
41.35% |
|
41.69% |
|
41.14% |
|
40.61% |
|
39.49% |
|
(0.34) |
|
1.86 |
Average total deposits / Average total funding (3) |
|
96.82% |
|
96.84% |
|
96.72% |
|
96.21% |
|
95.15% |
|
(0.02) |
|
1.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit & Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans and leases to total loans and leases |
|
0.18% |
|
0.23% |
|
0.24% |
|
0.22% |
|
0.25% |
|
(0.05) |
|
(0.07) |
Non-performing assets to total assets |
|
0.14% |
|
0.17% |
|
0.17% |
|
0.17% |
|
0.19% |
|
(0.03) |
|
(0.05) |
Allowance for credit losses to loans and leases |
|
1.14% |
|
1.16% |
|
1.23% |
|
1.33% |
|
1.49% |
|
(0.02) |
|
(0.35) |
Total risk-based capital ratio (4) |
|
14.0% |
|
14.3% |
|
14.9% |
|
15.4% |
|
15.8% |
|
(0.30) |
|
(1.80) |
Common equity tier 1 risk-based capital ratio (4) |
|
11.3% |
|
11.6% |
|
12.0% |
|
12.4% |
|
12.6% |
|
(0.30) |
|
(1.30) |
|
(1) See GAAP to Non-GAAP Reconciliation. |
(2) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
(3) Total funding = Total deposits + Total borrowings. |
(4) Estimated holding company ratios. |
|
|||||||||||||
Loan & Lease Portfolio Balances and Mix |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% Change |
||
(Dollars in thousands) |
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Seq. |
|
Year |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied term, net |
$ 3,884,784 |
|
$ 3,786,887 |
|
$ 3,561,764 |
|
$ 3,580,386 |
|
$ 3,455,773 |
|
3% |
|
12% |
Owner occupied term, net |
2,327,899 |
|
2,332,422 |
|
2,330,338 |
|
2,398,326 |
|
2,358,169 |
|
0% |
|
(1)% |
Multifamily, net |
4,323,633 |
|
4,051,202 |
|
3,813,024 |
|
3,553,704 |
|
3,421,320 |
|
7% |
|
26% |
Construction & development, net |
940,286 |
|
890,338 |
|
882,778 |
|
857,866 |
|
876,297 |
|
6% |
|
7% |
Residential development, net |
195,308 |
|
206,990 |
|
177,148 |
|
193,904 |
|
190,841 |
|
(6)% |
|
2% |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net (1) |
2,772,206 |
|
3,008,473 |
|
3,159,466 |
|
3,748,269 |
|
4,350,763 |
|
(8)% |
|
(36)% |
Lines of credit & other, net |
871,483 |
|
910,733 |
|
930,350 |
|
908,518 |
|
825,162 |
|
(4)% |
|
6% |
Leases & equipment finance, net |
1,484,252 |
|
1,467,676 |
|
1,457,248 |
|
1,437,372 |
|
1,420,977 |
|
1% |
|
4% |
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage, net |
4,748,266 |
|
4,517,266 |
|
4,330,860 |
|
4,145,432 |
|
3,958,644 |
|
5% |
|
20% |
Home equity loans & lines, net |
1,250,702 |
|
1,197,170 |
|
1,133,823 |
|
1,118,278 |
|
1,097,168 |
|
4% |
|
14% |
Consumer & other, net |
176,942 |
|
184,023 |
|
193,141 |
|
201,684 |
|
205,746 |
|
(4)% |
|
(14)% |
Total loans and leases, net of deferred fees and costs |
|
|
|
|
|
|
|
|
|
|
2% |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Bank participated in the Payroll Protection Program to originate SBA loans designated to help businesses maintain their workforce and cover other working capital needs during the COVID-19 pandemic. The Commercial Term loans in the table above include the following net PPP loan balances: |
|||||||||||||
Net PPP loan balance |
|
|
$ 380,440 |
|
$ 726,737 |
|
$ 1,380,212 |
|
$ 2,047,793 |
|
(55)% |
|
(92)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and leases mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied term, net |
17% |
|
17% |
|
16% |
|
16% |
|
15% |
|
|
|
|
Owner occupied term, net |
10% |
|
10% |
|
11% |
|
11% |
|
11% |
|
|
|
|
Multifamily, net |
19% |
|
18% |
|
17% |
|
16% |
|
15% |
|
|
|
|
Construction & development, net |
4% |
|
4% |
|
4% |
|
4% |
|
4% |
|
|
|
|
Residential development, net |
1% |
|
1% |
|
1% |
|
1% |
|
1% |
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net |
12% |
|
13% |
|
14% |
|
17% |
|
20% |
|
|
|
|
Lines of credit & other, net |
4% |
|
4% |
|
4% |
|
4% |
|
4% |
|
|
|
|
Leases & equipment finance, net |
6% |
|
7% |
|
7% |
|
6% |
|
6% |
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage, net |
21% |
|
20% |
|
20% |
|
19% |
|
18% |
|
|
|
|
Home equity loans & lines, net |
5% |
|
5% |
|
5% |
|
5% |
|
5% |
|
|
|
|
Consumer & other, net |
1% |
|
1% |
|
1% |
|
1% |
|
1% |
|
|
|
|
Total |
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
|
|
|
|
|||||||||||||
Deposit Balances, Mix, and Select Account Details |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% Change |
||
(Dollars in thousands) |
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Seq. |
|
Year |
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest bearing |
|
|
|
|
|
|
|
|
|
|
0% |
|
5% |
Demand, interest bearing |
3,955,329 |
|
3,774,937 |
|
3,758,019 |
|
3,466,251 |
|
3,244,624 |
|
5% |
|
22% |
Money market |
7,572,581 |
|
7,611,718 |
|
7,780,442 |
|
7,559,621 |
|
7,554,798 |
|
(1)% |
|
0% |
Savings |
2,429,073 |
|
2,375,723 |
|
2,325,929 |
|
2,221,524 |
|
2,109,211 |
|
2% |
|
15% |
Time |
1,684,353 |
|
1,808,583 |
|
1,922,880 |
|
2,187,236 |
|
2,477,718 |
|
(7)% |
|
(32)% |
Total |
|
|
|
|
|
|
|
|
|
|
0% |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits (1) |
|
|
|
|
|
|
|
|
|
|
1% |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit mix: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest bearing |
42% |
|
41% |
|
41% |
|
41% |
|
41% |
|
|
|
|
Demand, interest bearing |
15% |
|
14% |
|
14% |
|
13% |
|
12% |
|
|
|
|
Money market |
28% |
|
29% |
|
29% |
|
29% |
|
29% |
|
|
|
|
Savings |
9% |
|
9% |
|
9% |
|
9% |
|
8% |
|
|
|
|
Time |
6% |
|
7% |
|
7% |
|
8% |
|
10% |
|
|
|
|
Total |
100% |
|
100% |
|
100% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of open accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest bearing |
428,915 |
|
428,181 |
|
425,337 |
|
424,626 |
|
422,792 |
|
|
|
|
Demand, interest bearing |
63,800 |
|
66,010 |
|
70,749 |
|
71,411 |
|
72,156 |
|
|
|
|
Money market |
56,783 |
|
57,222 |
|
57,794 |
|
58,289 |
|
58,409 |
|
|
|
|
Savings |
160,267 |
|
160,449 |
|
161,698 |
|
161,902 |
|
161,432 |
|
|
|
|
Time |
34,127 |
|
35,665 |
|
37,172 |
|
39,560 |
|
43,637 |
|
|
|
|
Total |
743,892 |
|
747,527 |
|
752,750 |
|
755,788 |
|
758,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance per account: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest bearing |
$ 25.8 |
|
$ 25.7 |
|
$ 26.1 |
|
$ 25.2 |
|
$ 24.8 |
|
|
|
|
Demand, interest bearing |
62.0 |
|
57.2 |
|
53.1 |
|
48.5 |
|
45.0 |
|
|
|
|
Money market |
133.4 |
|
133.0 |
|
134.6 |
|
129.7 |
|
129.3 |
|
|
|
|
Savings |
15.2 |
|
14.8 |
|
14.4 |
|
13.7 |
|
13.1 |
|
|
|
|
Time |
49.4 |
|
50.7 |
|
51.7 |
|
55.3 |
|
56.8 |
|
|
|
|
Total |
$ 35.9 |
|
$ 35.6 |
|
$ 35.7 |
|
$ 34.6 |
|
$ 34.1 |
|
|
|
|
|
(1) Core deposits are defined as total deposits less time deposits greater than |
|
|||||||||||||||
Credit Quality – Non-performing Assets |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
|
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on non-accrual status: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, net |
|
$ 5,950 |
|
$ 5,767 |
|
$ 5,952 |
|
$ 9,034 |
|
$ 9,432 |
|
3% |
|
(37)% |
|
Commercial, net |
|
12,415 |
|
13,098 |
|
18,200 |
|
11,639 |
|
19,784 |
|
(5)% |
|
(37)% |
|
Residential, net |
|
— |
|
— |
|
— |
|
— |
|
— |
|
nm |
|
nm |
|
Consumer & other, net |
|
— |
|
— |
|
— |
|
— |
|
— |
|
nm |
|
nm |
|
Total Loans and leases on non-accrual status |
|
18,365 |
|
18,865 |
|
24,152 |
|
20,673 |
|
29,216 |
|
(3)% |
|
(37)% |
Loans and leases past due 90+ days and accruing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, net |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
0% |
|
0% |
|
Commercial, net |
|
8 |
|
4,160 |
|
2,454 |
|
2,255 |
|
756 |
|
(100)% |
|
(99)% |
|
Residential, net |
|
23,162 |
|
27,981 |
|
24,919 |
|
26,648 |
|
24,524 |
|
(17)% |
|
(6)% |
|
Consumer & other, net |
|
111 |
|
194 |
|
116 |
|
240 |
|
331 |
|
(43)% |
|
(66)% |
|
Total Loans and leases past due 90+ days and accruing |
|
23,282 |
|
32,336 |
|
27,490 |
|
29,144 |
|
25,612 |
|
(28)% |
|
(9)% |
Total non-performing loans and leases |
|
41,647 |
|
51,201 |
|
51,642 |
|
49,817 |
|
54,828 |
|
(19)% |
|
(24)% |
|
Other real estate owned |
|
1,868 |
|
1,868 |
|
1,868 |
|
181 |
|
1,405 |
|
0% |
|
33% |
|
Total non-performing assets |
|
$ 43,515 |
|
$ 53,069 |
|
$ 53,510 |
|
$ 49,998 |
|
$ 56,233 |
|
(18)% |
|
(23)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing restructured loans and leases |
|
$ 8,405 |
|
$ 6,694 |
|
$ 9,849 |
|
$ 13,072 |
|
$ 9,921 |
|
26% |
|
(15)% |
|
Loans and leases past due 31-89 days |
|
$ 42,409 |
|
$ 31,680 |
|
$ 41,326 |
|
$ 30,646 |
|
$ 51,120 |
|
34% |
|
(17)% |
|
Loans and leases past due 31-89 days to total loans and leases |
|
0.18% |
|
0.14% |
|
0.19% |
|
0.14% |
|
0.23% |
|
|
|
|
|
Non-performing loans and leases to total loans and leases |
|
0.18% |
|
0.23% |
|
0.24% |
|
0.22% |
|
0.25% |
|
|
|
|
|
Non-performing assets to total assets |
|
0.14% |
|
0.17% |
|
0.17% |
|
0.17% |
|
0.19% |
|
|
|
|
|
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Credit Quality – Allowance for Credit Losses |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
|
Allowance for credit losses on loans and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
|
|
|
|
|
|
|
|
|
|
(4)% |
|
(24)% |
|
Provision (recapture) for credit losses on loans and leases |
|
5,696 |
|
(1,751) |
|
(16,132) |
|
(17,775) |
|
526 |
|
(425)% |
|
983% |
|
Charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, net |
|
— |
|
(58) |
|
(916) |
|
(129) |
|
(41) |
|
(100)% |
|
(100)% |
|
Commercial, net |
|
(7,858) |
|
(10,197) |
|
(8,521) |
|
(16,093) |
|
(19,614) |
|
(23)% |
|
(60)% |
|
Residential, net |
|
(167) |
|
— |
|
— |
|
— |
|
(70) |
|
nm |
|
139% |
|
Consumer & other, net |
|
(885) |
|
(675) |
|
(936) |
|
(857) |
|
(1,190) |
|
31% |
|
(26)% |
|
Total charge-offs |
|
(8,910) |
|
(10,930) |
|
(10,373) |
|
(17,079) |
|
(20,915) |
|
(18)% |
|
(57)% |
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, net |
|
25 |
|
56 |
|
120 |
|
89 |
|
380 |
|
(55)% |
|
(93)% |
|
Commercial, net |
|
2,545 |
|
2,585 |
|
3,346 |
|
2,681 |
|
2,091 |
|
(2)% |
|
22% |
|
Residential, net |
|
173 |
|
326 |
|
281 |
|
209 |
|
108 |
|
(47)% |
|
60% |
|
Consumer & other, net |
|
623 |
|
566 |
|
431 |
|
479 |
|
692 |
|
10% |
|
(10)% |
|
Total recoveries |
|
3,366 |
|
3,533 |
|
4,178 |
|
3,458 |
|
3,271 |
|
(5)% |
|
3% |
Net charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, net |
|
25 |
|
(2) |
|
(796) |
|
(40) |
|
339 |
|
nm |
|
(93)% |
|
Commercial, net |
|
(5,313) |
|
(7,612) |
|
(5,175) |
|
(13,412) |
|
(17,523) |
|
(30)% |
|
(70)% |
|
Residential, net |
|
6 |
|
326 |
|
281 |
|
209 |
|
38 |
|
(98)% |
|
(84)% |
|
Consumer & other, net |
|
(262) |
|
(109) |
|
(505) |
|
(378) |
|
(498) |
|
140% |
|
(47)% |
|
Total net charge-offs |
|
(5,544) |
|
(7,397) |
|
(6,195) |
|
(13,621) |
|
(17,644) |
|
(25)% |
|
(69)% |
Balance, end of period |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
(20)% |
|
Reserve for unfunded commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$ 12,767 |
|
$ 11,752 |
|
$ 14,539 |
|
$ 19,760 |
|
$ 20,286 |
|
9% |
|
(37)% |
|
Provision (recapture) for credit losses on unfunded commitments |
|
151 |
|
1,015 |
|
(2,787) |
|
(5,221) |
|
(526) |
|
(85)% |
|
(129)% |
|
Balance, end of period |
|
12,918 |
|
12,767 |
|
11,752 |
|
14,539 |
|
19,760 |
|
1% |
|
(35)% |
|
Total Allowance for credit losses (ACL) |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
(21)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans and leases (annualized) |
|
0.10% |
|
0.13% |
|
0.11% |
|
0.25% |
|
0.33% |
|
|
|
|
|
Recoveries to gross charge-offs |
|
37.78% |
|
32.32% |
|
40.28% |
|
20.25% |
|
15.64% |
|
|
|
|
|
ACLLL to loans and leases |
|
1.08% |
|
1.10% |
|
1.17% |
|
1.26% |
|
1.40% |
|
|
|
|
|
ACL to loans and leases |
|
1.14% |
|
1.16% |
|
1.23% |
|
1.33% |
|
1.49% |
|
|
|
|
|
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
Quarter Ended |
||||||||||||||||
|
|
|
|
|
|
||||||||||||
(Dollars in thousands) |
Average |
|
Interest Expense |
|
Average |
|
Average |
|
Interest |
|
Average
Yields |
|
Average |
|
Interest |
|
Average |
INTEREST-EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
$ 286,307 |
|
$ 2,262 |
|
3.16% |
|
$ 366,043 |
|
$ 2,907 |
|
3.18% |
|
$ 703,557 |
|
$ 4,845 |
|
2.75% |
Loans and leases (1) |
22,566,109 |
|
212,142 |
|
3.79% |
|
22,098,818 |
|
218,594 |
|
3.94% |
|
21,692,639 |
|
216,296 |
|
4.02% |
Taxable securities |
3,659,145 |
|
18,811 |
|
2.06% |
|
3,681,650 |
|
16,668 |
|
1.81% |
|
2,945,896 |
|
13,710 |
|
1.86% |
Non-taxable securities (2) |
234,186 |
|
1,726 |
|
2.95% |
|
247,183 |
|
1,831 |
|
2.96% |
|
252,741 |
|
1,915 |
|
3.03% |
Temporary investments and interest-bearing cash |
2,618,528 |
|
1,353 |
|
0.21% |
|
3,190,380 |
|
1,229 |
|
0.15% |
|
2,483,451 |
|
624 |
|
0.10% |
Total interest-earning assets |
29,364,275 |
|
|
|
3.24% |
|
29,584,074 |
|
|
|
3.25% |
|
28,078,284 |
|
|
|
3.41% |
Other assets |
1,233,138 |
|
|
|
|
|
1,302,304 |
|
|
|
|
|
1,314,206 |
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
$ 3,812,173 |
|
$ 498 |
|
0.05% |
|
$ 3,765,212 |
|
$ 524 |
|
0.06% |
|
$ 3,125,398 |
|
$ 414 |
|
0.05% |
Money market deposits |
7,640,810 |
|
1,408 |
|
0.07% |
|
7,717,844 |
|
1,448 |
|
0.07% |
|
7,360,512 |
|
1,491 |
|
0.08% |
Savings deposits |
2,405,958 |
|
205 |
|
0.03% |
|
2,342,865 |
|
206 |
|
0.03% |
|
1,998,927 |
|
163 |
|
0.03% |
Time deposits |
1,753,880 |
|
1,805 |
|
0.42% |
|
1,864,949 |
|
2,179 |
|
0.46% |
|
2,681,361 |
|
8,610 |
|
1.30% |
Total interest-bearing deposits |
15,612,821 |
|
3,916 |
|
0.10% |
|
15,690,870 |
|
4,357 |
|
0.11% |
|
15,166,198 |
|
10,678 |
|
0.29% |
Repurchase agreements and federal funds purchased |
486,542 |
|
63 |
|
0.05% |
|
484,891 |
|
48 |
|
0.04% |
|
395,946 |
|
76 |
|
0.08% |
Borrowings |
6,313 |
|
49 |
|
3.16% |
|
6,353 |
|
51 |
|
3.19% |
|
539,077 |
|
1,772 |
|
1.33% |
Junior subordinated debentures |
380,985 |
|
3,149 |
|
3.35% |
|
387,471 |
|
3,019 |
|
3.09% |
|
343,473 |
|
3,052 |
|
3.60% |
Total interest-bearing liabilities |
16,486,661 |
|
$ 7,177 |
|
0.18% |
|
16,569,585 |
|
$ 7,475 |
|
0.18% |
|
16,444,694 |
|
$ 15,578 |
|
0.38% |
Non-interest-bearing deposits |
11,007,034 |
|
|
|
|
|
11,219,766 |
|
|
|
|
|
9,897,749 |
|
|
|
|
Other liabilities |
388,659 |
|
|
|
|
|
379,274 |
|
|
|
|
|
375,176 |
|
|
|
|
Total liabilities |
27,882,354 |
|
|
|
|
|
28,168,625 |
|
|
|
|
|
26,717,619 |
|
|
|
|
Common equity |
2,715,059 |
|
|
|
|
|
2,717,753 |
|
|
|
|
|
2,674,871 |
|
|
|
|
Total liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
3.06% |
|
|
|
|
|
3.07% |
|
|
|
|
|
3.03% |
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) |
|
|
|
|
3.14% |
|
|
|
|
|
3.15% |
|
|
|
|
|
3.18% |
|
(1) Non-accrual loans and leases are included in the average balance. |
(2) Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately |
|
||||||||||||||
(Unaudited) |
||||||||||||||
Core Banking |
Quarter Ended |
|
% Change |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
|
Net interest income |
$ 227,087 |
|
$ 231,250 |
|
$ 232,348 |
|
$ 226,915 |
|
$ 217,574 |
|
(2)% |
|
4% |
|
Provision (recapture) for credit losses |
4,804 |
|
(736) |
|
(18,919) |
|
(22,996) |
|
— |
|
nm |
|
nm |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt securities, net |
2 |
|
4 |
|
— |
|
— |
|
4 |
|
(50)% |
|
(50)% |
|
(Loss) gain on equity securities, net |
(2,661) |
|
(466) |
|
(343) |
|
4 |
|
(706) |
|
471% |
|
277% |
|
Gain (loss) on swap derivatives, net |
7,047 |
|
(303) |
|
1,429 |
|
(4,481) |
|
11,750 |
|
nm |
|
(40)% |
|
Change in fair value of certain loans held for investment |
(21,049) |
|
(2,672) |
|
3,432 |
|
2,782 |
|
(510) |
|
nm |
|
nm |
|
Non-interest income (excluding above items) |
35,650 |
|
42,812 |
|
34,849 |
|
48,151 |
|
32,913 |
|
(17)% |
|
8% |
|
Total non-interest income |
18,989 |
|
39,375 |
|
39,367 |
|
46,456 |
|
43,451 |
|
(52)% |
|
(56)% |
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related expenses |
2,278 |
|
15,183 |
|
— |
|
— |
|
— |
|
(85)% |
|
nm |
|
Exit and disposal costs |
3,033 |
|
3,022 |
|
3,813 |
|
4,728 |
|
1,200 |
|
0% |
|
153% |
|
Non-interest expense (excluding above items) |
148,423 |
|
150,587 |
|
146,931 |
|
146,877 |
|
145,161 |
|
(1)% |
|
2% |
|
Allocated expenses, net (1) |
3,735 |
|
4,314 |
|
3,680 |
|
970 |
|
(790) |
|
(13)% |
|
nm |
|
Total non-interest expense |
157,469 |
|
173,106 |
|
154,424 |
|
152,575 |
|
145,571 |
|
(9)% |
|
8% |
Income before income taxes |
83,803 |
|
98,255 |
|
136,210 |
|
143,792 |
|
115,454 |
|
(15)% |
|
(27)% |
|
Provision for income taxes |
20,917 |
|
24,067 |
|
33,945 |
|
35,630 |
|
28,106 |
|
(13)% |
|
(26)% |
|
Net income |
$ 62,886 |
|
$ 74,188 |
|
$ 102,265 |
|
$ 108,162 |
|
$ 87,348 |
|
(15)% |
|
(28)% |
|
Effective Tax Rate |
25% |
|
24% |
|
25% |
|
25% |
|
24% |
|
|
|
|
|
Efficiency Ratio |
64% |
|
64% |
|
57% |
|
56% |
|
56% |
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
|
Total loans and leases |
|
|
|
|
|
|
|
|
|
|
2% |
|
4% |
|
Total deposits |
|
|
|
|
|
|
|
|
|
|
0% |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 year CMT |
2.32% |
|
1.52% |
|
1.52% |
|
1.45% |
|
1.74% |
|
|
|
|
|
FHLMC 30 year fixed |
4.67% |
|
3.11% |
|
3.01% |
|
2.98% |
|
3.18% |
|
|
|
|
|
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment. |
||||||||||||||
|
||||||||||||||
Segments - Continued |
||||||||||||||
(Unaudited) |
||||||||||||||
Mortgage Banking |
Quarter Ended |
|
% Change |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
|
Net interest income |
$ 1,676 |
|
$ 2,129 |
|
$ 2,726 |
|
$ 2,848 |
|
$ 3,857 |
|
(21)% |
|
(57)% |
|
Provision for credit losses |
— |
|
— |
|
— |
|
— |
|
— |
|
nm |
|
nm |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage banking revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and sale |
16,844 |
|
23,624 |
|
30,293 |
|
41,367 |
|
62,505 |
|
(29)% |
|
(73)% |
|
Servicing |
9,140 |
|
9,457 |
|
9,172 |
|
9,120 |
|
9,087 |
|
(3)% |
|
1% |
|
Change in fair value of MSR asset: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to collection/realization of expected cash flows over time |
(5,347) |
|
(5,311) |
|
(4,681) |
|
(4,366) |
|
(4,545) |
|
1% |
|
18% |
|
Changes due to valuation inputs or assumptions |
40,149 |
|
15,415 |
|
(634) |
|
(1,678) |
|
(2,014) |
|
160% |
|
nm |
|
Non-interest income (excluding above items) |
194 |
|
178 |
|
188 |
|
176 |
|
316 |
|
9% |
|
(39)% |
|
Total non-interest income |
60,980 |
|
43,363 |
|
34,338 |
|
44,619 |
|
65,349 |
|
41% |
|
(7)% |
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
28,696 |
|
30,919 |
|
33,009 |
|
37,795 |
|
41,231 |
|
(7)% |
|
(30)% |
|
Allocated expenses, net (1) |
(3,735) |
|
(4,314) |
|
(3,680) |
|
(970) |
|
790 |
|
(13)% |
|
nm |
|
Total non-interest expense |
24,961 |
|
26,605 |
|
29,329 |
|
36,825 |
|
42,021 |
|
(6)% |
|
(41)% |
Income before income taxes |
37,695 |
|
18,887 |
|
7,735 |
|
10,642 |
|
27,185 |
|
100% |
|
39% |
|
Provision for income taxes |
9,424 |
|
4,721 |
|
1,934 |
|
2,661 |
|
6,796 |
|
100% |
|
39% |
|
Net income |
$ 28,271 |
|
$ 14,166 |
|
$ 5,801 |
|
$ 7,981 |
|
$ 20,389 |
|
100% |
|
39% |
|
Effective Tax Rate |
25% |
|
25% |
|
25% |
|
25% |
|
25% |
|
|
|
|
|
Efficiency Ratio |
40% |
|
58% |
|
79% |
|
78% |
|
61% |
|
|
|
|
|
Total assets |
$ 484,047 |
|
$ 485,878 |
|
$ 472,371 |
|
$ 564,783 |
|
$ 506,911 |
|
0% |
|
(5)% |
|
Loans held for sale |
$ 309,946 |
|
$ 353,105 |
|
$ 352,466 |
|
$ 429,052 |
|
$ 376,481 |
|
(12)% |
|
(18)% |
|
Total deposits |
$ 220,509 |
|
$ 224,117 |
|
$ 397,459 |
|
$ 332,777 |
|
$ 461,494 |
|
(2)% |
|
(52)% |
|
LHFS Production Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume for-sale |
$ 649,122 |
|
$ 871,268 |
|
$ 987,281 |
|
$ 1,253,023 |
|
$ 1,635,532 |
|
(25)% |
|
(60)% |
|
Gain on sale margin |
2.59% |
|
2.71% |
|
3.07% |
|
3.30% |
|
3.82% |
|
|
|
|
|
Direct LHFS expense |
$ 14,296 |
|
$ 18,150 |
|
$ 19,958 |
|
$ 25,459 |
|
$ 31,151 |
|
(21)% |
|
(54)% |
|
Direct LHFS expenses as % of volume |
2.20% |
|
2.08% |
|
2.02% |
|
2.03% |
|
1.90% |
|
|
|
|
|
MSR Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans serviced for others |
|
|
|
|
|
|
|
|
|
|
0% |
|
(2)% |
|
MSR, net |
$ 165,807 |
|
$ 123,615 |
|
$ 105,834 |
|
$ 102,699 |
|
$ 100,413 |
|
34% |
|
65% |
|
MSR as % of serviced portfolio |
1.29% |
|
0.97% |
|
0.82% |
|
0.80% |
|
0.77% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 year CMT |
2.32% |
|
1.52% |
|
1.52% |
|
1.45% |
|
1.74% |
|
|
|
|
|
FHLMC 30 year fixed |
4.67% |
|
3.11% |
|
3.01% |
|
2.98% |
|
3.18% |
|
|
|
|
|
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the internal charge of centrally provided support services and other corporate overhead to the Mortgage Banking segment, partially offset by allocations from the Mortgage Banking segment to Core Banking for new portfolio loan originations and portfolio servicing costs. |
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in
GAAP to Non-GAAP Reconciliation |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Total shareholders' equity |
a |
|
|
|
|
|
|
|
|
|
|
|
(5)% |
|
(3)% |
Less: |
|
|
— |
|
— |
|
— |
|
— |
|
2,715 |
|
nm |
|
(100)% |
Less: Other intangible assets, net |
|
|
7,815 |
|
8,840 |
|
9,970 |
|
11,100 |
|
12,230 |
|
(12)% |
|
(36)% |
Tangible common shareholders' equity |
b |
|
|
|
|
|
|
|
|
|
|
|
(5)% |
|
(3)% |
Less: Accumulated other comprehensive income (AOCI) |
|
|
|
|
1,759 |
|
20,209 |
|
50,629 |
|
38,132 |
|
nm |
|
(582)% |
Tangible common shareholders' equity, ex AOCI |
c |
|
|
|
|
|
|
|
|
|
|
|
2% |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
d |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
Less: |
|
|
— |
|
— |
|
— |
|
— |
|
2,715 |
|
nm |
|
(100)% |
Less: Other intangible assets, net |
|
|
7,815 |
|
8,840 |
|
9,970 |
|
11,100 |
|
12,230 |
|
(12)% |
|
(36)% |
Tangible assets |
e |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
Common shares outstanding at period end |
f |
|
216,967 |
|
216,626 |
|
216,622 |
|
220,626 |
|
220,491 |
|
0% |
|
(2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity to total assets ratio |
a / d |
|
8.51% |
|
8.97% |
|
8.81% |
|
9.13% |
|
8.93% |
|
(0.46) |
|
(0.42) |
Tangible common equity ratio |
b / e |
|
8.49% |
|
8.95% |
|
8.78% |
|
9.10% |
|
8.88% |
|
(0.46) |
|
(0.39) |
Tangible common equity ratio, ex AOCI |
c / e |
|
9.09% |
|
8.94% |
|
8.72% |
|
8.93% |
|
8.76% |
|
0.15 |
|
0.33 |
Book value per common share |
a / f |
|
$ 12.02 |
|
$ 12.69 |
|
$ 12.57 |
|
$ 12.54 |
|
$ 12.16 |
|
(5)% |
|
(1)% |
Tangible book value per common share |
b / f |
|
$ 11.98 |
|
$ 12.65 |
|
$ 12.52 |
|
$ 12.49 |
|
$ 12.10 |
|
(5)% |
|
(1)% |
Tangible book value per common share, ex AOCI |
c / f |
|
$ 12.83 |
|
$ 12.64 |
|
$ 12.43 |
|
$ 12.26 |
|
$ 11.92 |
|
2% |
|
8% |
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Consolidated |
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Non-Interest Income Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt securities, net |
|
|
$ 2 |
|
$ 4 |
|
$ — |
|
$ — |
|
$ 4 |
|
(50)% |
|
(50)% |
(Loss) gain on equity securities, net |
|
|
(2,661) |
|
(466) |
|
(343) |
|
4 |
|
(706) |
|
471% |
|
277% |
Gain (loss) on swap derivatives |
|
|
7,047 |
|
(303) |
|
1,429 |
|
(4,481) |
|
11,750 |
|
nm |
|
(40)% |
Change in fair value of certain loans held for investment |
|
|
(21,049) |
|
(2,672) |
|
3,432 |
|
2,782 |
|
(510) |
|
nm |
|
nm |
Change in fair value of MSR due to valuation inputs or assumptions |
|
|
40,149 |
|
15,415 |
|
(634) |
|
(1,678) |
|
(2,014) |
|
160% |
|
nm |
Total non-interest income adjustments |
a |
|
$ 23,488 |
|
$ 11,978 |
|
$ 3,884 |
|
$ (3,373) |
|
$ 8,524 |
|
96% |
|
176% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related expenses |
|
|
$ 2,278 |
|
$ 15,183 |
|
$ — |
|
$ — |
|
$ — |
|
(85)% |
|
nm |
Exit and disposal costs |
|
|
3,033 |
|
3,022 |
|
3,813 |
|
4,728 |
|
1,200 |
|
0% |
|
153% |
Total non-interest expense adjustments |
b |
|
$ 5,311 |
|
$ 18,205 |
|
$ 3,813 |
|
$ 4,728 |
|
$ 1,200 |
|
(71)% |
|
343% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
c |
|
$ 229,117 |
|
$ 233,754 |
|
$ 235,452 |
|
$ 230,140 |
|
$ 221,812 |
|
(2)% |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income (GAAP) |
d |
|
$ 79,969 |
|
$ 82,738 |
|
$ 73,705 |
|
$ 91,075 |
|
$ 108,800 |
|
(3)% |
|
(26)% |
Less: Non-interest income adjustments |
a |
|
(23,488) |
|
(11,978) |
|
(3,884) |
|
3,373 |
|
(8,524) |
|
96% |
|
176% |
Operating non-interest income (non-GAAP) |
e |
|
$ 56,481 |
|
$ 70,760 |
|
$ 69,821 |
|
$ 94,448 |
|
$ 100,276 |
|
(20)% |
|
(44)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (GAAP) (1) |
f=c+d |
|
$ 309,086 |
|
$ 316,492 |
|
$ 309,157 |
|
$ 321,215 |
|
$ 330,612 |
|
(2)% |
|
(7)% |
Operating revenue (non-GAAP) (1) |
g=c+e |
|
$ 285,598 |
|
$ 304,514 |
|
$ 305,273 |
|
$ 324,588 |
|
$ 322,088 |
|
(6)% |
|
(11)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense (GAAP) |
h |
|
$ 182,430 |
|
$ 199,711 |
|
$ 183,753 |
|
$ 189,400 |
|
$ 187,592 |
|
(9)% |
|
(3)% |
Less: Non-interest expense adjustments |
b |
|
(5,311) |
|
(18,205) |
|
(3,813) |
|
(4,728) |
|
(1,200) |
|
(71)% |
|
343% |
Operating non-interest expense (non-GAAP) |
i |
|
$ 177,119 |
|
$ 181,506 |
|
$ 179,940 |
|
$ 184,672 |
|
$ 186,392 |
|
(2)% |
|
(5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
j |
|
$ 91,157 |
|
$ 88,354 |
|
$ 108,066 |
|
$ 116,143 |
|
$ 107,737 |
|
3% |
|
(15)% |
Provision for income taxes |
|
|
30,341 |
|
28,788 |
|
35,879 |
|
38,291 |
|
34,902 |
|
5% |
|
(13)% |
Income before provision for income taxes |
|
|
121,498 |
|
117,142 |
|
143,945 |
|
154,434 |
|
142,639 |
|
4% |
|
(15)% |
Provision (recapture) for credit losses |
|
|
4,804 |
|
(736) |
|
(18,919) |
|
(22,996) |
|
— |
|
nm |
|
nm |
Pre-provision net revenue (PPNR) (non-GAAP) |
k |
|
126,302 |
|
116,406 |
|
125,026 |
|
131,438 |
|
142,639 |
|
9% |
|
(11)% |
Less: Non-interest income adjustments |
a |
|
(23,488) |
|
(11,978) |
|
(3,884) |
|
3,373 |
|
(8,524) |
|
96% |
|
176% |
Add: Non-interest expense adjustments |
b |
|
5,311 |
|
18,205 |
|
3,813 |
|
4,728 |
|
1,200 |
|
(71)% |
|
343% |
Operating PPNR (non-GAAP) |
l |
|
$ 108,125 |
|
$ 122,633 |
|
$ 124,955 |
|
$ 139,539 |
|
$ 135,315 |
|
(12)% |
|
(20)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
j |
|
$ 91,157 |
|
$ 88,354 |
|
$ 108,066 |
|
$ 116,143 |
|
$ 107,737 |
|
3% |
|
(15)% |
Less: Non-interest income adjustments |
a |
|
(23,488) |
|
(11,978) |
|
(3,884) |
|
3,373 |
|
(8,524) |
|
96% |
|
176% |
Add: Non-interest expense adjustments |
b |
|
5,311 |
|
18,205 |
|
3,813 |
|
4,728 |
|
1,200 |
|
(71)% |
|
343% |
Tax effect of adjustments |
|
|
4,576 |
|
1,190 |
|
18 |
|
(2,025) |
|
1,831 |
|
285% |
|
150% |
Operating net income (non-GAAP) |
m |
|
$ 77,556 |
|
$ 95,771 |
|
$ 108,013 |
|
$ 122,219 |
|
$ 102,244 |
|
(19)% |
|
(24)% |
nm = not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Consolidated |
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Average assets |
n |
|
|
|
|
|
|
|
|
|
|
|
(1)% |
|
4% |
Less: Average goodwill and other intangible assets, net |
|
|
8,407 |
|
9,491 |
|
10,609 |
|
12,615 |
|
15,598 |
|
(11)% |
|
(46)% |
Average tangible assets |
o |
|
|
|
|
|
|
|
|
|
|
|
(1)% |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity |
p |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
Less: Average goodwill and other intangible assets, net |
|
|
8,407 |
|
9,491 |
|
10,609 |
|
12,615 |
|
15,598 |
|
(11)% |
|
(46)% |
Average tangible common equity |
q |
|
|
|
|
|
|
|
|
|
|
|
0% |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares outstanding |
r |
|
216,782 |
|
216,624 |
|
218,416 |
|
220,593 |
|
220,367 |
|
0% |
|
(2)% |
Weighted average diluted shares outstanding |
s |
|
217,392 |
|
217,356 |
|
218,978 |
|
221,022 |
|
220,891 |
|
0% |
|
(2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share & Performance Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share - basic |
j / r |
|
$ 0.42 |
|
$ 0.41 |
|
$ 0.49 |
|
$ 0.53 |
|
$ 0.49 |
|
2% |
|
(14)% |
Earnings-per-share - diluted |
j / s |
|
$ 0.42 |
|
$ 0.41 |
|
$ 0.49 |
|
$ 0.53 |
|
$ 0.49 |
|
2% |
|
(14)% |
Efficiency ratio |
h / f |
|
59.02% |
|
63.10% |
|
59.44% |
|
58.96% |
|
56.74% |
|
(4.08) |
|
2.28 |
PPNR return on average assets |
k / n |
|
1.67% |
|
1.50% |
|
1.62% |
|
1.75% |
|
1.97% |
|
0.17 |
|
(0.30) |
Return on average assets |
j / n |
|
1.21% |
|
1.13% |
|
1.40% |
|
1.54% |
|
1.49% |
|
0.08 |
|
(0.28) |
Return on average tangible assets |
j / o |
|
1.21% |
|
1.14% |
|
1.40% |
|
1.55% |
|
1.49% |
|
0.07 |
|
(0.28) |
Return on average common equity |
j / p |
|
13.62% |
|
12.90% |
|
15.82% |
|
17.25% |
|
16.33% |
|
0.72 |
|
(2.71) |
Return on average tangible common equity |
j / q |
|
13.66% |
|
12.94% |
|
15.88% |
|
17.33% |
|
16.43% |
|
0.72 |
|
(2.77) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share & Performance Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings-per-share - basic |
m / r |
|
$ 0.36 |
|
$ 0.44 |
|
$ 0.49 |
|
$ 0.55 |
|
$ 0.46 |
|
(18)% |
|
(22)% |
Operating earnings-per-share - diluted |
m / s |
|
$ 0.36 |
|
$ 0.44 |
|
$ 0.49 |
|
$ 0.55 |
|
$ 0.46 |
|
(18)% |
|
(22)% |
Operating efficiency ratio |
i / g |
|
62.02% |
|
59.61% |
|
58.94% |
|
56.89% |
|
57.87% |
|
2.41 |
|
4.15 |
Operating PPNR return on average assets |
l / n |
|
1.43% |
|
1.58% |
|
1.62% |
|
1.86% |
|
1.87% |
|
(0.15) |
|
(0.44) |
Operating return on average assets |
m / n |
|
1.03% |
|
1.23% |
|
1.40% |
|
1.63% |
|
1.41% |
|
(0.20) |
|
(0.38) |
Operating return on average tangible assets |
m / o |
|
1.03% |
|
1.23% |
|
1.40% |
|
1.63% |
|
1.41% |
|
(0.20) |
|
(0.38) |
Operating return on average common equity |
m / p |
|
11.58% |
|
13.98% |
|
15.82% |
|
18.16% |
|
15.50% |
|
(2.40) |
|
(3.92) |
Operating return on average tangible common equity |
m / q |
|
11.62% |
|
14.03% |
|
15.88% |
|
18.24% |
|
15.59% |
|
(2.41) |
|
(3.97) |
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Core Banking |
|
|
Quarter Ended |
|
% Change |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Non-Interest Income Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt securities, net |
|
|
$ 2 |
|
$ 4 |
|
$ — |
|
$ — |
|
$ 4 |
|
(50)% |
|
(50)% |
(Loss) gain on equity securities, net |
|
|
(2,661) |
|
(466) |
|
(343) |
|
4 |
|
(706) |
|
471% |
|
277% |
Gain (loss) on swap derivatives |
|
|
7,047 |
|
(303) |
|
1,429 |
|
(4,481) |
|
11,750 |
|
nm |
|
(40)% |
Change in fair value of certain loans held for investment |
|
|
(21,049) |
|
(2,672) |
|
3,432 |
|
2,782 |
|
(510) |
|
688% |
|
4,027% |
Total non-interest income adjustments |
a |
|
|
|
|
|
$ 4,518 |
|
$ (1,695) |
|
$ 10,538 |
|
385% |
|
(258)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related expenses |
|
|
$ 2,278 |
|
|
|
$ — |
|
$ — |
|
$ — |
|
(85)% |
|
nm |
Exit and disposal costs |
|
|
3,033 |
|
3,022 |
|
3,813 |
|
4,728 |
|
1,200 |
|
0% |
|
153% |
Total non-interest expense adjustments |
b |
|
$ 5,311 |
|
|
|
$ 3,813 |
|
$ 4,728 |
|
$ 1,200 |
|
(71)% |
|
343% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
c |
|
|
|
|
|
|
|
|
|
|