01/27/2022 | Press release | Distributed by Public on 01/27/2022 07:35
SUFFOLK, Va., Jan. 27, 2022 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (Nasdaq: TOWN) today reported financial results for the full year and the fourth quarter ended December 31, 2021. For the year ended December 31, 2021, earnings were $215.38 million, or $2.97 per diluted share, compared to $145.54 million, or $2.01 per diluted share for the year ended December 31, 2020. Earnings in the fourth quarter of 2021 were $40.18 million, or $0.55 per diluted share, compared to fourth quarter 2020 earnings of $50.08 million, or $0.69 per diluted share.
"We were pleased with our performance for 2021, highlighted by our 22nd year of increased earnings. We achieved record financial results with total revenues surpassing $680 million for the year, which illustrates the value of Towne's diversified business model. Credit quality remained excellent and strong deposit growth across all markets was a bright spot for the year, leading the way for TowneBank to maintain the #1 market share position for our home market in Hampton Roads. These accomplishments were the result of the hard work and dedication from our nearly 2,900 team members who embrace and define our culture of caring each day," said G. Robert Aston, Jr., Executive Chairman.
Annual Highlights for 2021 Compared to 2020:
Highlights for Fourth Quarter 2021 Compared to Fourth Quarter 2020:
"From a strategic perspective, we were encouraged to see loan growth momentum build in the back half of 2021. We have several new banking locations coming fully online in 2022 and expect to continue expanding our impressive suite of noninterest income sources. We are well-positioned to deploy our excess liquidity and should benefit in a rising rate environment," said J. Morgan Davis, Chief Executive Officer.
Quarterly Net Interest Income Compared to the Fourth Quarter of 2020:
Quarterly Provision for Credit Losses:
Quarterly Noninterest Income Compared to Fourth Quarter 2020:
Quarterly Noninterest Expense Compared to Fourth Quarter 2020:
Consolidated Balance Sheet Highlights:
Investment Securities:
Loans and Asset Quality:
Deposits and Borrowings:
Capital:
Annual Meeting of Shareholders:
TowneBank intends to hold its 2022 Annual Meeting of Shareholders at 11:30 a.m. on Wednesday, May 25, 2022 at the Virginia Beach Convention Center, 1000 19th Street in Virginia Beach, Virginia.
About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.
Today, TowneBank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina - serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $16.36 billion as of December 31, 2021, TowneBank is one of the largest banks headquartered in Virginia.
Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank's core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.
Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include the impacts of the ongoing COVID-19 pandemic and the associated efforts to limit the spread of the virus; competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; changes in the credit worthiness of customers and the possible impairment of the collectability of loans; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this release, see the "Risk Factors" in TowneBank's Annual Report on Form 10-K for the year ended December 31, 2020 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.
Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
J. Morgan Davis, Chief Executive Officer, 757-673-1673
Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813
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Selected Financial Highlights (unaudited) | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
Income and Performance Ratios: | ||||||||||||||||||||
Total revenue, net of interest expense | $ | 160,424 | $ | 170,076 | $ | 167,321 | $ | 182,509 | $ | 171,848 | ||||||||||
Net income | 41,657 | 52,743 | 58,002 | 72,631 | 53,891 | |||||||||||||||
Net income available to common shareholders | 40,183 | 50,400 | 55,803 | 68,995 | 50,082 | |||||||||||||||
Pre-provision, pre-tax, net revenues (non-GAAP) | 48,483 | 63,647 | 59,728 | 81,578 | 62,107 | |||||||||||||||
Net income per common share - diluted | 0.55 | 0.69 | 0.77 | 0.95 | 0.69 | |||||||||||||||
Book value per common share | 26.13 | 25.91 | 25.51 | 24.78 | 24.31 | |||||||||||||||
Book value per share - tangible (non-GAAP) | 19.15 | 18.92 | 18.70 | 17.94 | 17.46 | |||||||||||||||
Return on average assets | 0.99 | % | 1.27 | % | 1.48 | % | 1.92 | % | 1.35 | % | ||||||||||
Return on average assets - tangible (non-GAAP) | 1.08 | % | 1.37 | % | 1.59 | % | 2.05 | % | 1.46 | % | ||||||||||
Return on average equity | 8.38 | % | 10.59 | % | 12.21 | % | 15.56 | % | 11.26 | % | ||||||||||
Return on average equity - tangible (non-GAAP) | 12.08 | % | 15.09 | % | 17.38 | % | 22.19 | % | 16.28 | % | ||||||||||
Return on average common equity | 8.45 | % | 10.68 | % | 12.31 | % | 15.70 | % | 11.36 | % | ||||||||||
Return on average common equity - tangible (non-GAAP) | 12.22 | % | 15.27 | % | 17.57 | % | 22.45 | % | 16.48 | % | ||||||||||
Noninterest income as a percentage of total revenue | 37.17 | % | 40.94 | % | 39.55 | % | 45.21 | % | 41.45 | % | ||||||||||
Regulatory Capital Ratios (1): | ||||||||||||||||||||
Common equity tier 1 | 12.36 | % | 12.53 | % | 12.42 | % | 12.15 | % | 11.87 | % | ||||||||||
Tier 1 | 12.50 | % | 12.69 | % | 12.57 | % | 12.30 | % | 12.04 | % | ||||||||||
Total | 15.56 | % | 15.85 | % | 15.76 | % | 15.59 | % | 15.42 | % | ||||||||||
Tier 1 leverage ratio | 9.12 | % | 9.18 | % | 9.44 | % | 9.54 | % | 8.99 | % | ||||||||||
Asset Quality: | ||||||||||||||||||||
Allowance for credit losses on loans to nonperforming loans | 17.76x | 12.68x | 9.67x | 9.09x | 10.74x | |||||||||||||||
Allowance for credit losses on loans to period end loans | 1.12 | % | 1.15 | % | 1.15 | % | 1.19 | % | 1.25 | % | ||||||||||
Allowance for credit losses on loans to period end loans excluding PPP loans (non-GAAP) | 1.13 | % | 1.18 | % | 1.22 | % | 1.31 | % | 1.37 | % | ||||||||||
Nonperforming loans to period end loans | 0.06 | % | 0.09 | % | 0.12 | % | 0.13 | % | 0.12 | % | ||||||||||
Nonperforming assets to period end assets | 0.06 | % | 0.09 | % | 0.10 | % | 0.11 | % | 0.11 | % | ||||||||||
Net charge-offs (recoveries) to average loans (annualized) | - | % | (0.03 | )% | (0.01 | )% | 0.03 | % | - | % | ||||||||||
Net charge-offs (recoveries) | (60 | ) | (644 | ) | (137 | ) | 669 | 109 | ||||||||||||
Nonperforming loans | $ | 5,973 | $ | 8,451 | $ | 11,178 | $ | 12,768 | $ | 11,188 | ||||||||||
Former bank premises | - | - | - | 750 | 750 | |||||||||||||||
Foreclosed property | 4,583 | 5,409 | 4,041 | 3,748 | 4,276 | |||||||||||||||
Total nonperforming assets | $ | 10,556 | $ | 13,860 | $ | 15,219 | $ | 17,266 | $ | 16,214 | ||||||||||
Loans past due 90 days and still accruing interest | $ | 372 | $ | 143 | $ | 1,584 | $ | 108 | $ | 528 | ||||||||||
Allowance for credit losses on loans | 106,059 | 107,177 | 108,130 | 116,077 | 120,157 | |||||||||||||||
Mortgage Banking: | ||||||||||||||||||||
Loans originated, mortgage | $ | 851,021 | $ | 939,272 | $ | 1,050,663 | $ | 1,187,595 | $ | 1,257,963 | ||||||||||
Loans originated, joint venture | 303,362 | 370,865 | 403,864 | 417,177 | 429,848 | |||||||||||||||
Total loans originated | $ | 1,154,383 | $ | 1,310,137 | $ | 1,454,527 | $ | 1,604,772 | $ | 1,687,811 | ||||||||||
Number of loans originated | 3,408 | 3,917 | 4,514 | 5,164 | 5,481 | |||||||||||||||
Number of originators | 213 | 219 | 222 | 229 | 228 | |||||||||||||||
Purchase % | 79.36 | % | 77.45 | % | 76.95 | % | 53.45 | % | 59.76 | % | ||||||||||
Loans sold | $ | 1,150,996 | $ | 1,394,166 | $ | 1,485,057 | $ | 1,601,480 | $ | 1,845,926 | ||||||||||
Rate lock asset | $ | 3,455 | $ | 6,087 | $ | 7,760 | $ | 12,522 | $ | 11,781 | ||||||||||
Gross realized gain on sales and fees as a % of loans originated | 3.42 | % | 3.61 | % | 3.64 | % | 4.01 | % | 4.02 | % | ||||||||||
Other Ratios: | ||||||||||||||||||||
Net interest margin | 2.70 | % | 2.76 | % | 2.92 | % | 3.04 | % | 2.97 | % | ||||||||||
Net interest margin-fully tax equivalent (non-GAAP) | 2.72 | % | 2.78 | % | 2.94 | % | 3.06 | % | 2.98 | % | ||||||||||
Average earning assets/total average assets | 92.08 | % | 91.89 | % | 91.89 | % | 91.46 | % | 91.59 | % | ||||||||||
Average loans/average deposits | 70.68 | % | 71.69 | % | 78.22 | % | 82.71 | % | 83.42 | % | ||||||||||
Average noninterest deposits/total average deposits | 41.42 | % | 40.40 | % | 40.21 | % | 38.39 | % | 39.61 | % | ||||||||||
Period end equity/period end total assets | 11.71 | % | 1 | 12.02 | % | 11.83 | % | 12.04 | % | 12.20 | % | |||||||||
Efficiency ratio (non-GAAP) | 67.03 | % | 59.58 | % | 61.46 | % | 52.11 | % | 60.02 | % | ||||||||||
(1) Current reporting period regulatory capital ratios are preliminary. |
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Selected Data (unaudited) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Investment Securities | % Change | |||||||||||||||||||
Q4 | Q4 | Q3 | Q4 21 vs. | Q4 21 vs. | ||||||||||||||||
Available-for-sale securities, at fair value | 2021 | 2020 | 2021 | Q4 20 | Q3 21 | |||||||||||||||
U.S. agency securities | $ | 310,587 | $ | 184,657 | $ | 207,949 | 68.20 | % | 49.36 | % | ||||||||||
U.S. Treasury notes | 1,000 | 1,000 | 1,007 | - | % | (0.70 | )% | |||||||||||||
Municipal securities | 385,673 | 353,651 | 350,980 | 9.05 | % | 9.88 | % | |||||||||||||
Trust preferred and other corporate securities | 53,950 | 31,499 | 31,591 | 71.28 | % | 70.78 | % | |||||||||||||
Mortgage-backed securities issued by GSE and GNMA | 1,055,183 | 797,765 | 969,017 | 32.27 | % | 8.89 | % | |||||||||||||
Allowance for credit losses | (210 | ) | (348 | ) | (142 | ) | (39.66 | )% | 47.89 | % | ||||||||||
Total | $ | 1,806,183 | $ | 1,368,224 | $ | 1,560,402 | 32.01 | % | 15.75 | % | ||||||||||
Gross unrealized gains (losses) reflected in financial statements | ||||||||||||||||||||
Total gross unrealized gains | $ | 32,054 | $ | 60,025 | $ | 40,906 | (46.60 | )% | (21.64 | )% | ||||||||||
Total gross unrealized losses | (14,514 | ) | (1,703 | ) | (8,845 | ) | 752.26 | % | 64.09 | % | ||||||||||
Net unrealized gain (loss) on AFS securities | $ | 17,540 | $ | 58,322 | $ | 32,061 | (69.93 | )% | (45.29 | )% | ||||||||||
Held-to-maturity securities, at amortized cost | ||||||||||||||||||||
U.S. agency securities | $ | 73,360 | $ | - | $ | - | 100.00 | % | 100.00 | % | ||||||||||
U.S. Treasury notes | 66,326 | - | - | 100.00 | % | 100.00 | % | |||||||||||||
Municipal securities | 5,095 | 5,012 | 2,285 | 1.66 | % | 122.98 | % | |||||||||||||
Trust preferred corporate securities | 2,272 | 2,321 | 5,074 | (2.11 | )% | (55.22 | )% | |||||||||||||
Mortgage-backed securities issued by GSE and GNMA | 7,168 | 9,179 | 7,539 | (21.91 | )% | (4.92 | )% | |||||||||||||
Allowance for credit losses | (94 | ) | (97 | ) | (94 | ) | (3.09 | )% | - | % | ||||||||||
Total | $ | 154,127 | $ | 16,415 | $ | 14,804 | 838.94 | % | 941.12 | % | ||||||||||
Gross unrealized gains (losses) not reflected in financial statements | ||||||||||||||||||||
Total gross unrealized gains | $ | 1,561 | $ | 1,957 | $ | 1,591 | (20.24 | )% | (1.89 | )% | ||||||||||
Total gross unrealized losses | (106 | ) | - | - | n/m | n/m | ||||||||||||||
Net unrealized gain (loss) on HTM securities | $ | 1,455 | $ | 1,957 | $ | 1,591 | (25.65 | )% | (8.55 | )% | ||||||||||
Loans Held For Investment (1) | % Change | |||||||||||||||||||
Q4 | Q4 | Q3 | Q4 21 vs. | Q4 21 vs. | ||||||||||||||||
2021 | 2020 | 2021 | Q4 20 | Q3 21 | ||||||||||||||||
Real estate - construction and development | $ | 1,125,863 | $ | 1,199,772 | $ | 1,005,592 | (6.16 | )% | 11.96 | % | ||||||||||
Commercial real estate - owner occupied | 1,494,000 | 1,380,516 | 1,463,000 | 8.22 | % | 2.12 | % | |||||||||||||
Commercial real estate - non owner occupied | 2,620,334 | 2,335,235 | 2,647,625 | 12.21 | % | (1.03 | )% | |||||||||||||
Multifamily | 332,659 | 295,488 | 363,733 | 12.58 | % | (8.54 | )% | |||||||||||||
Residential 1-4 family | 1,305,915 | 1,216,629 | 1,233,125 | 7.34 | % | 5.90 | % | |||||||||||||
HELOC | 380,834 | 412,476 | 389,974 | (7.67 | )% | (2.34 | )% | |||||||||||||
Commercial and industrial business (C&I) | 1,206,911 | 1,990,808 | 1,253,972 | (39.38 | )% | (3.75 | )% | |||||||||||||
Government | 525,358 | 379,243 | 471,037 | 38.53 | % | 11.53 | % | |||||||||||||
Indirect | 394,802 | 271,459 | 348,864 | 45.44 | % | 13.17 | % | |||||||||||||
Consumer loans and other | 119,576 | 147,442 | 120,643 | (18.90 | )% | (0.88 | )% | |||||||||||||
Total | $ | 9,506,252 | $ | 9,629,068 | $ | 9,297,565 | (1.28 | )% | 2.24 | % | ||||||||||
(1) PPP loans totaling $0.16 billion, $0.86 billion and $0.25 billion, primarily in C&I, are included in Q4 2021, Q4 2020 and Q3 2021, respectively. | ||||||||||||||||||||
Deposits | % Change | |||||||||||||||||||
Q4 | Q4 | Q3 | Q4 21 vs. | Q4 21 vs. | ||||||||||||||||
2021 | 2020 | 2021 | Q4 20 | Q3 21 | ||||||||||||||||
Noninterest-bearing demand | $ | 5,546,665 | $ | 4,374,566 | $ | 5,394,952 | 26.79 | % | 2.81 | % | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Demand and money market accounts | 6,139,714 | 4,819,604 | 5,681,181 | 27.39 | % | 8.07 | % | |||||||||||||
Savings | 371,356 | 330,091 | 366,165 | 12.50 | % | 1.42 | % | |||||||||||||
Certificates of deposits | 1,515,891 | 2,048,905 | 1,571,752 | (26.01 | )% | (3.55 | )% | |||||||||||||
Total | $ | 13,573,626 | $ | 11,573,166 | $ | 13,014,050 | 17.29 | % | 4.30 | % | ||||||||||
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Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1) |
$ | 9,364,498 | $ | 95,696 | 4.05 | % | $ | 9,238,922 | $ | 98,732 | 4.24 | % | $ | 9,752,150 | $ | 104,799 | 4.28 | % | ||||||||||||||
Taxable investment securities | 1,625,683 | 10,217 | 2.51 | % | 1,421,347 | 6,560 | 1.85 | % | 1,250,375 | 6,878 | 2.20 | % | ||||||||||||||||||||
Tax-exempt investment securities | 157,855 | 292 | 0.74 | % | 125,523 | 487 | 1.55 | % | 139,572 | 520 | 1.49 | % | ||||||||||||||||||||
Total securities | 1,783,538 | 10,509 | 2.36 | % | 1,546,870 | 7,047 | 1.82 | % | 1,389,947 | 7,398 | 2.13 | % | ||||||||||||||||||||
Interest-bearing deposits | 3,274,392 | 1,215 | 0.15 | % | 3,179,010 | 1,182 | 0.15 | % | 1,754,365 | 435 | 0.10 | % | ||||||||||||||||||||
Loans held for sale | 379,808 | 2,750 | 2.90 | % | 468,323 | 3,406 | 2.91 | % | 587,517 | 3,867 | 2.63 | % | ||||||||||||||||||||
Total earning assets | 14,802,236 | 110,170 | 2.95 | % | 14,433,125 | 110,367 | 3.03 | % | 13,483,979 | 116,499 | 3.44 | % | ||||||||||||||||||||
Less: allowance for credit losses | (107,215 | ) | (108,478 | ) | (121,402 | ) | ||||||||||||||||||||||||||
Total nonearning assets | 1,380,488 | 1,382,351 | 1,359,808 | |||||||||||||||||||||||||||||
Total assets | $ | 16,075,509 | $ | 15,706,998 | $ | 14,722,385 | ||||||||||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||
Demand and money market | $ | 5,853,873 | $ | 2,148 | 0.15 | % | $ | 5,486,788 | $ | 2,095 | 0.15 | % | $ | 4,582,588 | $ | 2,633 | 0.23 | % | ||||||||||||||
Savings | 371,901 | 534 | 0.57 | % | 358,739 | 533 | 0.59 | % | 317,561 | 552 | 0.69 | % | ||||||||||||||||||||
Certificates of deposit | 1,541,483 | 2,707 | 0.70 | % | 1,842,948 | 3,400 | 0.73 | % | 2,159,573 | 7,578 | 1.40 | % | ||||||||||||||||||||
Total interest-bearing deposits | 7,767,257 | 5,389 | 0.28 | % | 7,688,475 | 6,028 | 0.31 | % | 7,059,722 | 10,763 | 0.61 | % | ||||||||||||||||||||
Borrowings | 245,622 | 360 | 0.58 | % | 300,505 | 412 | 0.54 | % | 722,291 | 1,645 | 0.89 | % | ||||||||||||||||||||
Subordinated debt, net | 249,555 | 2,962 | 4.75 | % | 249,405 | 2,962 | 4.75 | % | 248,965 | 2,962 | 4.76 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 8,262,434 | 8,711 | 0.42 | % | 8,238,385 | 9,402 | 0.45 | % | 8,030,978 | 15,370 | 0.76 | % | ||||||||||||||||||||
Demand deposits | 5,492,894 | 5,212,271 | 4,630,665 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 417,707 | 367,891 | 291,836 | |||||||||||||||||||||||||||||
Total liabilities | 14,173,035 | 13,818,547 | 12,953,479 | |||||||||||||||||||||||||||||
Shareholders' equity | 1,902,474 | 1,888,451 | 1,768,906 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 16,075,509 | $ | 15,706,998 | $ | 14,722,385 | ||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (4) | $ | 101,459 | $ | 100,965 | $ | 101,129 | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (667 | ) | (522 | ) | (515 | ) | ||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 100,792 | $ | 100,443 | $ | 100,614 | ||||||||||||||||||||||||||
Interest rate spread (2)(3) | 2.53 | % | 2.58 | % | 2.68 | % | ||||||||||||||||||||||||||
Interest expense as a percent of average earning assets | 0.23 | % | 0.26 | % | 0.45 | % | ||||||||||||||||||||||||||
Net interest margin (tax equivalent basis) (3)(4) | 2.72 | % | 2.78 | % | 2.98 | % | ||||||||||||||||||||||||||
Total cost of deposits | 0.16 | % | 0.19 | % | 0.37 | % | ||||||||||||||||||||||||||
(1) December 31, 2021, December 31, 2020, and September 30, 2021 balances include average PPP balances of $0.20 billion, $1.04 billion, and $0.36 billion, and related interest and fee income of $3.85 million, $11.29 million, and $7.77 million, respectively. There were no PPP balances at December 31, 2019.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
TOWNEBANK | ||||||||||||||||||||||||||||||||
Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1) |
$ | 9,462,448 | $ | 397,877 | 4.20 | % | $ | 9,420,584 | $ | 411,421 | 4.37 | % | $ | 8,122,210 | $ | 405,511 | 4.99 | % | ||||||||||||||
Taxable investment securities | 1,426,493 | 29,857 | 2.09 | % | 1,252,926 | 30,181 | 2.41 | % | 1,202,107 | 34,141 | 2.84 | % | ||||||||||||||||||||
Tax-exempt investment securities | 137,848 | 1,755 | 1.27 | % | 140,078 | 2,997 | 2.14 | % | 102,731 | 3,426 | 3.34 | % | ||||||||||||||||||||
Total securities | 1,564,341 | 31,612 | 2.02 | % | 1,393,004 | 33,178 | 2.38 | % | 1,304,838 | 37,567 | 2.88 | % | ||||||||||||||||||||
Interest-bearing deposits | 2,640,191 | 3,432 | 0.13 | % | 689,715 | 2,603 | 0.38 | % | 665,903 | 13,825 | 2.08 | % | ||||||||||||||||||||
Mortgage loans held for sale | 471,767 | 13,227 | 2.80 | % | 505,502 | 15,252 | 3.02 | % | 335,588 | 13,379 | 3.99 | % | ||||||||||||||||||||
Total earning assets | 14,138,747 | 446,148 | 3.16 | % | 12,008,805 | 462,454 | 3.85 | % | 10,428,539 | 470,282 | 4.51 | % | ||||||||||||||||||||
Less: allowance for credit losses | (113,113 | ) | (85,570 | ) | (54,476 | ) | ||||||||||||||||||||||||||
Total nonearning assets | 1,359,028 | 2,248,971 | 1,264,363 | |||||||||||||||||||||||||||||
Total assets | $ | 15,384,662 | $ | 14,172,206 | $ | 11,638,426 | ||||||||||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||
Demand and money market | $ | 5,359,321 | $ | 8,323 | 0.16 | % | $ | 4,070,562 | $ | 13,105 | 0.32 | % | $ | 3,351,135 | $ | 26,909 | 0.80 | % | ||||||||||||||
Savings | 352,333 | 2,117 | 0.60 | % | 297,441 | 2,254 | 0.76 | % | 280,894 | 3,296 | 1.17 | % | ||||||||||||||||||||
Certificates of deposit | 1,788,985 | 16,669 | 0.93 | % | 2,378,281 | 42,502 | 1.79 | % | 2,478,663 | 56,050 | 2.26 | % | ||||||||||||||||||||
Total interest-bearing deposits | 7,500,639 | 27,109 | 0.36 | % | 6,746,284 | 57,861 | 0.86 | % | 6,110,692 | 86,255 | 1.41 | % | ||||||||||||||||||||
Borrowings | 395,045 | 2,159 | 0.54 | % | 1,269,064 | 10,306 | 0.80 | % | 609,142 | 11,368 | 1.84 | % | ||||||||||||||||||||
Subordinated debt, net | 249,335 | 11,816 | 4.74 | % | 248,736 | 11,847 | 4.76 | % | 248,139 | 11,847 | 4.77 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 8,145,019 | 41,084 | 0.50 | % | 8,264,084 | 80,014 | 0.97 | % | 6,967,973 | 109,470 | 1.57 | % | ||||||||||||||||||||
Demand deposits | 5,034,851 | 3,924,797 | 2,844,178 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 348,844 | 262,266 | 228,994 | |||||||||||||||||||||||||||||
Total liabilities | 13,528,714 | 12,451,147 | 10,041,145 | |||||||||||||||||||||||||||||
Shareholders' equity | 1,855,948 | 1,721,059 | 1,597,281 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 15,384,662 | $ | 14,172,206 | $ | 11,638,426 | ||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (4) | $ | 405,064 | $ | 382,440 | $ | 360,812 | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (2,695 | ) | (2,296 | ) | (2,457 | ) | ||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 402,369 | $ | 380,144 | $ | 358,355 | ||||||||||||||||||||||||||
Interest rate spread (2)(4) | 2.65 | % | 2.88 | % | 2.94 | % | ||||||||||||||||||||||||||
Interest expense as a percent of average earning assets | 0.29 | % | 0.67 | % | 1.05 | % | ||||||||||||||||||||||||||
Net interest margin (tax-equivalent basis) (3)(4) | 2.86 | % | 3.18 | % | 3.46 | % | ||||||||||||||||||||||||||
Total cost of deposits | 0.22 | % | 0.54 | % | 0.96 | % | ||||||||||||||||||||||||||
(1) December 31, 2021 and December 31, 2020 balances include average PPP balances of $0.53 billion and $0.74 billion and related interest and fee income of $33.27 million and $26.94 million, respectively There were no PPP balances at December 31, 2019.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
TOWNEBANK | |||||||
Consolidated Balance Sheets | |||||||
(dollars in thousands, except per share data) | |||||||
2021 | 2020 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 17,373 | $ | 41,514 | |||
Interest-bearing deposits at FRB - Richmond | 3,244,484 | 1,795,241 | |||||
Interest-bearing deposits in financial institutions | 34,779 | 27,532 | |||||
Total Cash and Cash Equivalents | 3,296,636 | 1,864,287 | |||||
Securities available for sale, at fair value (amortized cost of $1,788,853 and $1,310,250, and allowance for credit losses of $210 and $348 at December 31, 2021 and December 31, 2020, respectively. | 1,806,183 | 1,368,224 | |||||
Securities held to maturity, at amortized cost (fair value $155,676 and $18,469 at December 31, 2021 and December 31, 2020, respectively. | 154,221 | 16,512 | |||||
Less: allowance for credit losses | (94 | ) | (97 | ) | |||
Securities held to maturity, net of allowance for credit losses | 154,127 | 16,415 | |||||
Other equity securities | 6,759 | 6,492 | |||||
FHLB stock | 13,146 | 30,135 | |||||
Total Securities | 1,980,215 | 1,421,266 | |||||
Mortgage loans held for sale | 358,303 | 540,798 | |||||
Loans, net of unearned income and deferred costs | 9,506,252 | 9,629,068 | |||||
Less: allowance for credit losses | (106,059 | ) | (120,157 | ) | |||
Net Loans | 9,400,193 | 9,508,911 | |||||
Premises and equipment, net | 270,772 | 260,242 | |||||
Goodwill | 457,187 | 452,328 | |||||
Other intangible assets, net | 50,379 | 45,533 | |||||
BOLI | 251,805 | 246,109 | |||||
Other assets | 295,897 | 286,970 | |||||
TOTAL ASSETS | $ | 16,361,387 | $ | 14,626,444 | |||
LIABILITIES AND EQUITY | |||||||
Deposits: | |||||||
Noninterest-bearing demand | $ | 5,546,665 | $ | 4,374,566 | |||
Interest-bearing: | |||||||
Demand and money market accounts | 6,139,714 | 4,819,604 | |||||
Savings | 371,356 | 330,091 | |||||
Certificates of deposit | 1,515,891 | 2,048,905 | |||||
Total Deposits | 13,573,626 | 11,573,166 | |||||
Advances from the FHLB | 155,367 | 456,038 | |||||
Subordinated debt, net | 249,652 | 249,055 | |||||
FRB PPP Lending Facility | - | 182,852 | |||||
Repurchase agreements and other borrowings | 76,797 | 67,786 | |||||
Total Borrowings | 481,816 | 955,731 | |||||
Other liabilities | 389,771 | 313,719 | |||||
TOTAL LIABILITIES | 14,445,213 | 12,842,616 | |||||
Preferred stock | |||||||
Authorized and unissued shares - 2,000,000 | - | - | |||||
Common stock, $1.667 par: Authorized shares - 150,000,000 | |||||||
Issued and outstanding shares 72,683,985 in 2021 and 72,667,541 in 2020 | 121,164 | 121,132 | |||||
Capital surplus | 1,050,948 | 1,046,642 | |||||
Retained earnings | 716,605 | 557,889 | |||||
Common stock issued to deferred compensation trust, at cost | |||||||
911,458 shares in 2021 and 873,486 shares in 2020 | (18,257 | ) | (16,969 | ) | |||
Deferred compensation trust | 18,257 | 16,969 | |||||
Accumulated other comprehensive income (loss) | 10,597 | 41,184 | |||||
TOTAL SHAREHOLDERS' EQUITY | 1,899,314 | 1,766,847 | |||||
Noncontrolling interest | 16,860 | 16,981 | |||||
TOTAL EQUITY | 1,916,174 | 1,783,828 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 16,361,387 | $ | 14,626,444 | |||
TOWNEBANK | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
INTEREST INCOME: | |||||||||||||||
Loans, including fees | $ | 95,054 | $ | 104,182 | $ | 395,322 | $ | 409,252 | |||||||
Investment securities | 10,484 | 7,499 | 31,472 | 33,052 | |||||||||||
Interest-bearing deposits in financial institutions and federal funds sold | 1,215 | 435 | 3,432 | 2,603 | |||||||||||
Mortgage loans held for sale | 2,750 | 3,867 | 13,227 | 15,252 | |||||||||||
Total interest income | 109,503 | 115,983 | 443,453 | 460,159 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 5,389 | 10,762 | 27,109 | 57,862 | |||||||||||
Advances from the FHLB | 206 | 1,404 | 1,224 | 8,393 | |||||||||||
Subordinated debt, net | 2,962 | 2,962 | 11,816 | 11,847 | |||||||||||
Repurchase agreements and other borrowings | 154 | 241 | 935 | 1,913 | |||||||||||
Total interest expense | 8,711 | 15,369 | 41,084 | 80,015 | |||||||||||
Net interest income | 100,792 | 100,614 | 402,369 | 380,144 | |||||||||||
PROVISION FOR CREDIT LOSSES | (1,110 | ) | 1,617 | (16,774 | ) | 67,177 | |||||||||
Net interest income after provision for credit losses | 101,902 | 98,997 | 419,143 | 312,967 | |||||||||||
NONINTEREST INCOME: | |||||||||||||||
Residential mortgage banking income, net | 20,945 | 37,504 | 109,304 | 112,166 | |||||||||||
Insurance commissions and other title fees and income, net | 15,486 | 13,868 | 67,541 | 65,840 | |||||||||||
Property management income, net | 9,099 | 5,665 | 42,175 | 26,473 | |||||||||||
Real estate commission income, net | 3,165 | 3,564 | 13,290 | 11,776 | |||||||||||
Service charges on deposit accounts | 2,479 | 1,707 | 9,584 | 8,021 | |||||||||||
Credit card merchant fees, net | 1,412 | 1,377 | 6,042 | 5,170 | |||||||||||
BOLI | 1,904 | 1,990 | 7,265 | 8,285 | |||||||||||
Other income | 5,142 | 5,559 | 21,508 | 36,826 | |||||||||||
Net gain/(loss) on investment securities | - | - | 1,252 | 9,634 | |||||||||||
Total noninterest income | 59,632 | 71,234 | 277,961 | 284,191 | |||||||||||
NONINTEREST EXPENSE: | |||||||||||||||
Salaries and employee benefits | 64,814 | 61,475 | 245,844 | 235,676 | |||||||||||
Occupancy expense | 8,371 | 8,193 | 31,657 | 31,317 | |||||||||||
Furniture and equipment | 3,528 | 3,462 | 14,175 | 13,914 | |||||||||||
Amortization - intangibles | 2,935 | 2,797 | 11,127 | 11,498 | |||||||||||
Software expense | 4,014 | 4,066 | 16,911 | 14,622 | |||||||||||
Data processing | 3,524 | 2,363 | 13,779 | 10,985 | |||||||||||
Professional fees | 2,723 | 2,591 | 9,548 | 11,268 | |||||||||||
Advertising and marketing | 3,414 | 2,204 | 13,504 | 9,643 | |||||||||||
Other expenses | 17,144 | 18,781 | 60,727 | 56,902 | |||||||||||
Total noninterest expense | 110,467 | 105,932 | 417,272 | 395,825 | |||||||||||
Income before income tax expense and noncontrolling interest | 51,067 | 64,299 | 279,832 | 201,333 | |||||||||||
Provision for income tax expense | 9,410 | 10,408 | 54,798 | 31,900 | |||||||||||
Net income | $ | 41,657 | $ | 53,891 | $ | 225,034 | $ | 169,433 | |||||||
Net income attributable to noncontrolling interest | (1,474 | ) | (3,809 | ) | (9,651 | ) | (23,898 | ) | |||||||
Net income attributable to TowneBank | $ | 40,183 | $ | 50,082 | $ | 215,383 | $ | 145,535 | |||||||
Per common share information | |||||||||||||||
Basic earnings | $ | 0.55 | $ | 0.69 | $ | 2.97 | $ | 2.01 | |||||||
Diluted earnings | $ | 0.55 | $ | 0.69 | $ | 2.97 | $ | 2.01 | |||||||
Cash dividends declared | $ | 0.20 | $ | 0.18 | $ | 0.78 | $ | 0.72 |
TOWNEBANK | |||||||||||||||||||
Consolidated Balance Sheets - Five Quarter Trend | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 17,373 | $ | 75,370 | $ | 117,797 | $ | 141,545 | $ | 41,514 | |||||||||
Interest-bearing deposits at FRB - Richmond | 3,244,484 | 3,155,039 | 2,970,490 | 1,936,458 | 1,795,241 | ||||||||||||||
Interest-bearing deposits in financial institutions | 34,779 | 33,506 | 31,971 | 30,031 | 27,532 | ||||||||||||||
Total Cash and Cash Equivalents | 3,296,636 | 3,263,915 | 3,120,258 | 2,108,034 | 1,864,287 | ||||||||||||||
Securities available for sale, at fair value | 1,806,183 | 1,560,402 | 1,454,421 | 1,418,006 | 1,368,224 | ||||||||||||||
Securities held to maturity | 154,221 | 14,898 | 15,389 | 15,980 | 16,512 | ||||||||||||||
Less: allowance for credit losses | (94 | ) | (94 | ) | (97 | ) | (97 | ) | (97 | ) | |||||||||
Securities held to maturity, net of allowance for credit losses | 154,127 | 14,804 | 15,292 | 15,883 | 16,415 | ||||||||||||||
Other equity securities | 6,759 | 6,621 | 6,395 | 6,355 | 6,492 | ||||||||||||||
Federal Home Loan Bank stock | 13,146 | 13,146 | 16,909 | 16,909 | 30,135 | ||||||||||||||
Total Securities | 1,980,215 | 1,594,973 | 1,493,017 | 1,457,153 | 1,421,266 | ||||||||||||||
Mortgage loans held for sale | 358,303 | 431,846 | 554,447 | 582,905 | 540,798 | ||||||||||||||
Loans, net of unearned income and deferred costs | 9,506,252 | 9,297,565 | 9,423,578 | 9,734,583 | 9,629,068 | ||||||||||||||
Less: allowance for credit losses | (106,059 | ) | (107,177 | ) | (108,130 | ) | (116,077 | ) | (120,157 | ) | |||||||||
Net Loans | 9,400,193 | 9,190,388 | 9,315,448 | 9,618,506 | 9,508,911 | ||||||||||||||
Premises and equipment, net | 270,772 | 270,810 | 265,644 | 261,831 | 260,242 | ||||||||||||||
Goodwill | 457,187 | 457,187 | 452,328 | 452,328 | 452,328 | ||||||||||||||
Other intangible assets, net | 50,379 | 50,839 | 42,271 | 44,808 | 45,533 | ||||||||||||||
BOLI | 251,805 | 249,862 | 249,213 | 247,655 | 246,109 | ||||||||||||||
Other assets | 295,897 | 301,552 | 311,209 | 306,176 | 286,970 | ||||||||||||||
TOTAL ASSETS | $ | 16,361,387 | $ | 15,811,372 | $ | 15,803,835 | $ | 15,079,396 | $ | 14,626,444 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 5,546,665 | $ | 5,394,952 | $ | 5,243,074 | $ | 4,840,678 | $ | 4,374,566 | |||||||||
Interest-bearing: | |||||||||||||||||||
Demand and money market accounts | 6,139,714 | 5,681,181 | 5,373,146 | 5,062,461 | 4,819,604 | ||||||||||||||
Savings | 371,356 | 366,165 | 349,552 | 342,554 | 330,091 | ||||||||||||||
Certificates of deposit | 1,515,891 | 1,571,752 | 1,998,828 | 1,893,951 | 2,048,905 | ||||||||||||||
Total Deposits | 13,573,626 | 13,014,050 | 12,964,600 | 12,139,644 | 11,573,166 | ||||||||||||||
Advances from the FHLB | 155,367 | 155,537 | 255,706 | 255,872 | 456,038 | ||||||||||||||
Subordinated debt, net | 249,652 | 249,503 | 249,353 | 249,204 | 249,055 | ||||||||||||||
FRB PPP Lending Facility | - | - | - | 183,164 | 182,852 | ||||||||||||||
Repurchase agreements and other borrowings | 76,797 | 82,413 | 85,042 | 68,509 | 67,786 | ||||||||||||||
Total Borrowings | 481,816 | 487,453 | 590,101 | 756,749 | 955,731 | ||||||||||||||
Other liabilities | 389,771 | 409,435 | 379,278 | 366,697 | 313,719 | ||||||||||||||
TOTAL LIABILITIES | 14,445,213 | 13,910,938 | 13,933,979 | 13,263,090 | 12,842,616 | ||||||||||||||
Preferred stock | |||||||||||||||||||
Authorized shares - 2,000,000 | - | - | - | - | - | ||||||||||||||
Common stock, $1.667 par value | 121,164 | 121,163 | 121,144 | 121,108 | 121,132 | ||||||||||||||
Capital surplus | 1,050,948 | 1,049,367 | 1,048,332 | 1,047,312 | 1,046,642 | ||||||||||||||
Retained earnings | 716,605 | 690,960 | 655,095 | 613,826 | 557,889 | ||||||||||||||
Common stock issued to deferred compensation trust, at cost | (18,257 | ) | (18,076 | ) | (18,076 | ) | (17,063 | ) | (16,969 | ) | |||||||||
Deferred compensation trust | 18,257 | 18,076 | 18,076 | 17,063 | 16,969 | ||||||||||||||
Accumulated other comprehensive income (loss) | 10,597 | 21,597 | 29,273 | 17,969 | 41,184 | ||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 1,899,314 | 1,883,087 | 1,853,844 | 1,800,215 | 1,766,847 | ||||||||||||||
Noncontrolling interest | 16,860 | 17,347 | 16,012 | 16,091 | 16,981 | ||||||||||||||
TOTAL EQUITY | 1,916,174 | 1,900,434 | 1,869,856 | 1,816,306 | 1,783,828 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,361,387 | $ | 15,811,372 | $ | 15,803,835 | $ | 15,079,396 | $ | 14,626,444 | |||||||||
TOWNEBANK | |||||||||||||||||||
Consolidated Statements of Income - Five Quarter Trend (unaudited) | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2021 | 2021 | 2021 | 2021 | 2020 | |||||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Loans, including fees | $ | 95,054 | $ | 98,258 | $ | 100,614 | $ | 101,396 | $ | 104,182 | |||||||||
Investment securities | 10,484 | 7,000 | 6,871 | 7,117 | 7,499 | ||||||||||||||
Interest-bearing deposits in financial institutions and federal funds sold |
1,215 | 1,182 | 619 | 416 | 435 | ||||||||||||||
Mortgage loans held for sale | 2,750 | 3,405 | 3,711 | 3,361 | 3,867 | ||||||||||||||
Total interest income | 109,503 | 109,845 | 111,815 | 112,290 | 115,983 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Deposits | 5,389 | 6,028 | 7,144 | 8,548 | 10,762 | ||||||||||||||
Advances from the FHLB | 206 | 247 | 274 | 497 | 1,404 | ||||||||||||||
Subordinated debt | 2,962 | 2,962 | 2,962 | 2,930 | 2,962 | ||||||||||||||
Repurchase agreements and other borrowings | 154 | 165 | 291 | 325 | 241 | ||||||||||||||
Total interest expense | 8,711 | 9,402 | 10,671 | 12,300 | 15,369 | ||||||||||||||
Net interest income | 100,792 | 100,443 | 101,144 | 99,990 | 100,614 | ||||||||||||||
PROVISION FOR CREDIT LOSSES | (1,110 | ) | (1,582 | ) | (10,055 | ) | (4,027 | ) | 1,617 | ||||||||||
Net interest income after provision for credit losses | 101,902 | 102,025 | 111,199 | 104,017 | 98,997 | ||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||
Residential mortgage banking income, net | 20,945 | 25,422 | 25,524 | 37,412 | 37,504 | ||||||||||||||
Insurance commissions and other title fees and income, net | 15,486 | 17,398 | 18,331 | 16,325 | 13,868 | ||||||||||||||
Property management income, net | 9,099 | 10,502 | 7,091 | 15,483 | 5,665 | ||||||||||||||
Real estate commission income, net | 3,165 | 3,781 | 3,893 | 2,451 | 3,564 | ||||||||||||||
Service charges on deposit accounts | 2,479 | 2,524 | 2,391 | 2,190 | 1,707 | ||||||||||||||
Credit card merchant fees, net | 1,412 | 1,660 | 1,667 | 1,302 | 1,377 | ||||||||||||||
BOLI | 1,904 | 2,301 | 1,541 | 1,519 | 1,990 | ||||||||||||||
Other income | 5,142 | 6,045 | 5,487 | 4,837 | 5,559 | ||||||||||||||
Net gain/(loss) on investment securities | - | - | 252 | 1,000 | - | ||||||||||||||
Total noninterest income | 59,632 | 69,633 | 66,177 | 82,519 | 71,234 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 64,814 | 61,230 | 61,365 | 58,435 | 61,475 | ||||||||||||||
Occupancy expense | 8,371 | 7,656 | 7,559 | 8,072 | 8,193 | ||||||||||||||
Furniture and equipment | 3,528 | 3,513 | 3,622 | 3,512 | 3,462 | ||||||||||||||
Amortization - intangibles | 2,935 | 2,750 | 2,719 | 2,723 | 2,797 | ||||||||||||||
Software expense | 4,014 | 4,209 | 4,494 | 4,194 | 4,066 | ||||||||||||||
Data processing | 3,524 | 3,603 | 3,414 | 3,239 | 2,363 | ||||||||||||||
Professional fees | 2,723 | 2,227 | 2,259 | 2,339 | 2,591 | ||||||||||||||
Advertising and marketing | 3,414 | 3,865 | 3,257 | 2,968 | 2,204 | ||||||||||||||
Other expenses | 17,144 | 15,033 | 16,705 | 11,844 | 18,781 | ||||||||||||||
Total noninterest expense | 110,467 | 104,086 | 105,394 | 97,326 | 105,932 | ||||||||||||||
Income before income tax expense and noncontrolling interest | 51,067 | 67,572 | 71,982 | 89,210 | 64,299 | ||||||||||||||
Provision for income tax expense | 9,410 | 14,829 | 13,980 | 16,579 | 10,408 | ||||||||||||||
Net income | 41,657 | 52,743 | 58,002 | 72,631 | 53,891 | ||||||||||||||
Net income attributable to noncontrolling interest | (1,474 | ) | (2,343 | ) | (2,199 | ) | (3,636 | ) | (3,809 | ) | |||||||||
Net income attributable to TowneBank | $ | 40,183 | $ | 50,400 | $ | 55,803 | $ | 68,995 | $ | 50,082 | |||||||||
Per common share information | |||||||||||||||||||
Basic earnings | $ | 0.55 | $ | 0.70 | $ | 0.77 | $ | 0.95 | $ | 0.69 | |||||||||
Diluted earnings (1) | $ | 0.55 | $ | 0.69 | $ | 0.77 | $ | 0.95 | $ | 0.69 | |||||||||
Basic weighted average shares outstanding | 72,525,504 | 72,506,877 | 72,468,094 | 72,414,953 | 72,357,177 | ||||||||||||||
Diluted weighted average shares outstanding | 72,624,610 | 72,591,281 | 72,560,234 | 72,517,008 | 72,455,096 | ||||||||||||||
Cash dividends declared | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 |
(1) The quarterly diluted EPS do not sum to the total year diluted EPS due to rounding.
TOWNEBANK | ||||||||||||||||||||||||||
Banking Segment Financial Information | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
December 31, |
September 30, 2021 |
December 31, | 2021 over 2020 | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Amount | Percent | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Net interest income | $ | 98,345 | $ | 97,412 | $ | 97,668 | $ | 391,751 | $ | 367,353 | $ | 24,398 | 6.64 | % | ||||||||||||
Noninterest income | ||||||||||||||||||||||||||
Service charges on deposit accounts | 2,479 | 1,707 | 2,524 | 9,584 | 8,021 | 1,563 | 19.49 | % | ||||||||||||||||||
Credit card merchant fees | 1,412 | 1,377 | 1,660 | 6,042 | 5,169 | 873 | 16.89 | % | ||||||||||||||||||
Other income | 4,876 | 5,983 | 6,334 | 21,584 | 21,809 | (225 | ) | (1.03 | )% | |||||||||||||||||
Subtotal | 8,767 | 9,067 | 10,518 | 37,210 | 34,999 | 2,211 | 6.32 | % | ||||||||||||||||||
Gain (loss) on investment securities | - | - | 1,252 | 9,634 | (8,382 | ) | n/m | |||||||||||||||||||
Total noninterest income | 8,767 | 9,067 | 10,518 | 38,462 | 44,633 | (6,171 | ) | (13.83 | )% | |||||||||||||||||
Total revenue | 107,112 | 106,479 | 108,186 | 430,213 | 411,986 | 18,227 | 4.42 | % | ||||||||||||||||||
Provision for credit losses | (1,199 | ) | 1,628 | (1,728 | ) | (15,859 | ) | 65,799 | (81,658 | ) | (124.10 | )% | ||||||||||||||
Expenses | ||||||||||||||||||||||||||
Salaries and employee benefits | 37,678 | 37,358 | 34,791 | 140,105 | 142,328 | (2,223 | ) | (1.56 | )% | |||||||||||||||||
Occupancy expense | 5,541 | 5,681 | 5,098 | 21,198 | 21,237 | (39 | ) | (0.18 | )% | |||||||||||||||||
Furniture and equipment | 2,570 | 2,625 | 2,602 | 10,657 | 10,425 | 232 | 2.23 | % | ||||||||||||||||||
Amortization of intangible assets | 812 | 1,013 | 862 | 3,549 | 4,354 | (805 | ) | (18.49 | )% | |||||||||||||||||
Other expenses | 19,484 | 19,892 | 16,580 | 68,504 | 65,107 | 3,397 | 5.22 | % | ||||||||||||||||||
Total expenses | 66,085 | 66,569 | 59,933 | 244,013 | 243,451 | 562 | 0.23 | % | ||||||||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 42,226 | 38,282 | 49,981 | 202,059 | 102,736 | 99,323 | 96.68 | % | ||||||||||||||||||
Corporate allocation | 1,260 | 643 | 1,241 | 5,041 | 2,534 | 2,507 | 98.93 | % | ||||||||||||||||||
Income before income tax provision and noncontrolling interest | 43,486 | 38,925 | 51,222 | 207,100 | 105,270 | 101,830 | 96.73 | % | ||||||||||||||||||
Provision for income tax expense | 7,123 | 5,163 | 10,225 | 37,584 | 14,467 | 23,117 | 159.79 | % | ||||||||||||||||||
Net income | 36,363 | 33,762 | 40,997 | 169,516 | 90,803 | 78,713 | 86.69 | % | ||||||||||||||||||
Noncontrolling interest | (3 | ) | 4 | 2 | (4 | ) | 6 | (10 | ) | n/m | ||||||||||||||||
Net income attributable to TowneBank | $ | 36,360 | $ | 33,766 | $ | 40,999 | $ | 169,512 | $ | 90,809 | $ | 78,703 | 86.67 | % | ||||||||||||
Efficiency ratio (non-GAAP) | 60.94 | % | 61.57 | % | 54.60 | % | 56.06 | % | 59.42 | % |
TOWNEBANK | ||||||||||||||||||||||||||
Realty Segment Financial Information | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
December 31, | September 30, | December 31, | 2021 over 2020 | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | Amount | Percent | ||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||
Residential mortgage brokerage income, net |
$ | 22,257 | $ | 38,040 | $ | 26,637 | $ | 113,155 | $ | 114,589 | $ | (1,434 | ) | (1.25 | )% | |||||||||||
Real estate brokerage income, net | 3,165 | 3,564 | 3,781 | 13,290 | 11,776 | 1,514 | 12.86 | % | ||||||||||||||||||
Title insurance and settlement fees | 610 | 669 | 706 | 2,527 | 2,397 | 130 | 5.42 | % | ||||||||||||||||||
Property management fees, net | 9,099 | 5,665 | 10,502 | 42,175 | 26,473 | 15,702 | 59.31 | % | ||||||||||||||||||
Income from unconsolidated subsidiary |
113 | 398 | 269 | 1,077 | 1,336 | (259 | ) | (19.39 | )% | |||||||||||||||||
Net interest and other income | 3,010 | 3,627 | 3,154 | 12,232 | 13,889 | (1,657 | ) | (11.93 | )% | |||||||||||||||||
Total revenue | 38,254 | 51,963 | 45,049 | 184,456 | 170,460 | 13,996 | 8.21 | % | ||||||||||||||||||
Provision for credit losses | 89 | (11 | ) | 146 | (915 | ) | 1,378 | $ | (2,293 | ) | n/m | |||||||||||||||
Expenses | ||||||||||||||||||||||||||
Salaries and employee benefits | $ | 17,682 | $ | 16,168 | $ | 17,375 | $ | 67,922 | $ | 58,263 | $ | 9,659 | 16.58 | % | ||||||||||||
Occupancy expense | 1,957 | 1,869 | 1,926 | 7,689 | 7,465 | 224 | 3.00 | % | ||||||||||||||||||
Furniture and equipment | 727 | 614 | 693 | 2,661 | 2,622 | 39 | 1.49 | % | ||||||||||||||||||
Amortization of intangible assets | 931 | 658 | 702 | 2,813 | 2,630 | 183 | 6.96 | % | ||||||||||||||||||
Other expenses | 9,805 | 8,779 | 11,103 | 40,579 | 33,143 | 7,436 | 22.44 | % | ||||||||||||||||||
Total expenses | 31,102 | 28,088 | 31,799 | 121,664 | 104,123 | 17,541 | 16.85 | % | ||||||||||||||||||
Income (loss) before income tax, corporate allocation, and noncontrolling interest | 7,063 | 23,886 | 13,104 | 63,707 | 64,959 | (1,252 | ) | (1.93 | )% | |||||||||||||||||
Corporate allocation | (1,000 | ) | (403 | ) | (1,000 | ) | (4,000 | ) | (1,522 | ) | (2,478 | ) | 162.81 | % | ||||||||||||
Income (loss) before income tax provision and noncontrolling interest | 6,063 | 23,483 | 12,104 | 59,707 | 63,437 | (3,730 | ) | (5.88 | )% | |||||||||||||||||
Provision for income tax | 1,894 | 4,421 | 3,546 | 13,911 | 12,035 | 1,876 | 15.59 | % | ||||||||||||||||||
Net income (loss) | 4,169 | 19,062 | 8,558 | 45,796 | 51,402 | (5,606 | ) | (10.91 | )% | |||||||||||||||||
Noncontrolling interest | (1,471 | ) | (3,813 | ) | (2,345 | ) | (9,647 | ) | (11,809 | ) | 2,162 | (18.31 | )% | |||||||||||||
Net income (loss) attributable to TowneBank | $ | 2,698 | $ | 15,249 | $ | 6,213 | $ | 36,149 | $ | 39,593 | $ | (3,444 | ) | (8.70 | )% | |||||||||||
Efficiency ratio (non-GAAP) | 78.87 | % | 52.79 | % | 69.03 | % | 64.43 | % | 59.54 | % |
TOWNEBANK | ||||||||||||||||||||||||||
Insurance Segment Financial Information | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
December 31, | September 30, | December 31, | 2021 over 2020 | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | Amount | Percent | ||||||||||||||||||||
Commission and fee income | ||||||||||||||||||||||||||
Property and casualty | $ | 13,135 | $ | 11,942 | $ | 15,338 | $ | 57,603 | $ | 52,726 | $ | 4,877 | 9.25 | % | ||||||||||||
Employee benefits | 3,682 | 3,725 | 3,820 | 14,817 | 15,259 | (442 | ) | (2.90 | )% | |||||||||||||||||
Travel insurance (1) | - | - | - | - | 3,526 | (3,526 | ) | (100.00 | )% | |||||||||||||||||
Specialized benefit services | 172 | 175 | 164 | 666 | 664 | 2 | 0.30 | % | ||||||||||||||||||
Total commissions and fees | 16,989 | 15,842 | 19,322 | 73,086 | 72,175 | 911 | 1.26 | % | ||||||||||||||||||
Contingency and bonus revenue | 2,231 | 1,087 | 1,664 | 8,977 | 6,230 | 2,747 | 44.09 | % | ||||||||||||||||||
Other income (1) | 40 | 69 | 40 | 196 | 17,976 | (17,780 | ) | (98.91 | )% | |||||||||||||||||
Total revenue | 19,260 | 16,998 | 21,026 | 82,259 | 96,381 | (14,122 | ) | (14.65 | )% | |||||||||||||||||
Employee commission expense | 4,202 | 3,592 | 4,185 | 16,598 | 14,492 | 2,106 | 14.53 | % | ||||||||||||||||||
Revenue, net of commission expense | 15,058 | 13,406 | 16,841 | 65,661 | 81,889 | (16,228 | ) | (19.82 | )% | |||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Salaries and employee benefits | $ | 9,454 | $ | 7,949 | $ | 9,064 | $ | 37,817 | $ | 35,085 | $ | 2,732 | 7.79 | % | ||||||||||||
Occupancy expense | 873 | 643 | 632 | 2,770 | 2,615 | 155 | 5.93 | % | ||||||||||||||||||
Furniture and equipment | 231 | 223 | 218 | 857 | 867 | (10 | ) | (1.15 | )% | |||||||||||||||||
Amortization of intangible assets | 1,192 | 1,126 | 1,186 | 4,765 | 4,514 | 251 | 5.56 | % | ||||||||||||||||||
Other expenses | 1,530 | 1,334 | 1,254 | 5,386 | 5,170 | 216 | 4.18 | % | ||||||||||||||||||
Total operating expenses | 13,280 | 11,275 | 12,354 | 51,595 | 48,251 | 3,344 | 6.93 | % | ||||||||||||||||||
Income before income tax and noncontrolling interest | 1,778 | 2,131 | 4,487 | 14,066 | 33,638 | (19,572 | ) | (58.18 | )% | |||||||||||||||||
Corporate allocation | (260 | ) | (240 | ) | (241 | ) | (1,041 | ) | (1,012 | ) | (29 | ) | 2.87 | % | ||||||||||||
Income before income tax provision and noncontrolling interest | 1,518 | 1,891 | 4,246 | 13,025 | 32,626 | (19,601 | ) | (60.08 | )% | |||||||||||||||||
Provision for income tax expense | 393 | 824 | 1,058 | 3,303 | 5,398 | (2,095 | ) | (38.81 | )% | |||||||||||||||||
Net income | 1,125 | 1,067 | 3,188 | 9,722 | 27,228 | (17,506 | ) | (64.29 | )% | |||||||||||||||||
Noncontrolling interest (1) | - | - | - | - | (12,095 | ) | 12,095 | (100.00 | )% | |||||||||||||||||
Net income attributable to TowneBank | $ | 1,125 | $ | 1,067 | $ | 3,188 | $ | 9,722 | $ | 15,133 | $ | (5,411 | ) | (35.76 | )% | |||||||||||
Provision for income taxes | 393 | 824 | 1,058 | 3,303 | 5,398 | (2,095 | ) | (38.81 | )% | |||||||||||||||||
Depreciation, amortization and interest expense | 1,342 | 1,274 | 1,330 | 5,341 | 5,151 | 190 | 3.69 | % | ||||||||||||||||||
EBITDA (non-GAAP) | $ | 2,860 | $ | 3,165 | $ | 5,576 | $ | 18,366 | $ | 25,682 | $ | (7,316 | ) | (28.49 | )% | |||||||||||
Efficiency ratio (non-GAAP) | 80.28 | % | 75.70 | % | 66.31 | % | 71.32 | % | 68.06 | % | ||||||||||||||||
(1) In third quarter 2020, we sold Red Sky Insurance, our travel insurance joint venture. We recorded a gross gain on sale in other income of $17,626. Our re-tax net gain, after distributions to noncontrolling interest was $6,521. |
TOWNEBANK | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures: | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||
Return on average assets (GAAP) | 0.99 | % | 1.27 | % | 1.35 | % | 1.40 | % | 1.03 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 0.09 | % | 0.10 | % | 0.11 | % | 0.11 | % | 0.10 | % | |||||||||
Return on average tangible assets (non-GAAP) | 1.08 | % | 1.37 | % | 1.46 | % | 1.51 | % | 1.13 | % | |||||||||
Return on average equity (GAAP) | 8.38 | % | 10.59 | % | 11.26 | % | 11.61 | % | 8.46 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.70 | % | 4.50 | % | 5.02 | % | 4.94 | % | 4.16 | % | |||||||||
Return on average tangible equity (non-GAAP) | 12.08 | % | 15.09 | % | 16.28 | % | 16.55 | % | 12.62 | % | |||||||||
Return on average common equity (GAAP) | 8.45 | % | 10.68 | % | 11.36 | % | 11.70 | % | 8.52 | % | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.77 | % | 4.59 | % | 5.12 | % | 5.05 | % | 4.24 | % | |||||||||
Return on average tangible common equity (non-GAAP) | 12.22 | % | 15.27 | % | 16.48 | % | 16.75 | % | 12.76 | % | |||||||||
Book value (GAAP) | $ | 26.13 | $ | 25.91 | $ | 24.31 | $ | 26.13 | $ | 24.31 | |||||||||
Impact of excluding average goodwill and other intangibles and amortization | (6.98 | ) | (6.99 | ) | (6.85 | ) | (6.98 | ) | (6.85 | ) | |||||||||
Tangible book value (non-GAAP) | $ | 19.15 | $ | 18.92 | $ | 17.46 | $ | 19.15 | 17.46 | ||||||||||
Efficiency ratio (GAAP) | 68.86 | % | 61.20 | % | 61.64 | % | 61.33 | % | 59.58 | % | |||||||||
Impact of excluding gain/(loss) on investments and amortization expense | (1.83 | )% | (1.62 | )% | (1.62 | )% | (1.52) | )% | 0.75 | % | |||||||||
Efficiency ratio (non-GAAP) | 67.03 | % | 59.58 | % | 60.02 | % | 59.81 | % | 60.33 | % | |||||||||
Average assets (GAAP) | $ | 16,075,509 | $ | 15,706,998 | $ | 14,722,385 | $ | 15,384,662 | $ | 14,172,206 | |||||||||
Less: average goodwill and intangible assets | 506,867 | 506,231 | 491,453 | 501,689 | 495,707 | ||||||||||||||
Average tangible assets (non-GAAP) | $ | 15,568,642 | $ | 15,200,767 | $ | 14,230,932 | $ | 14,882,973 | $ | 13,676,499 | |||||||||
Average equity (GAAP) | $ | 1,902,474 | $ | 1,888,451 | $ | 1,768,906 | $ | 1,855,948 | $ | 1,721,059 | |||||||||
Less: average goodwill and intangible assets | 506,867 | 506,231 | 491,453 | 501,689 | 495,707 | ||||||||||||||
Average tangible equity (non-GAAP) | $ | 1,395,607 | $ | 1,382,220 | $ | 1,277,453 | $ | 1,354,259 | $ | 1,225,352 | |||||||||
Average common equity (GAAP) | $ | 1,886,279 | $ | 1,871,820 | $ | 1,753,596 | $ | 1,840,261 | $ | 1,707,635 | |||||||||
Less: average goodwill and intangible assets | 506,867 | 506,231 | 491,453 | 501,689 | 495,707 | ||||||||||||||
Average tangible common equity (non-GAAP) | $ | 1,379,412 | $ | 1,365,589 | $ | 1,262,143 | $ | 1,338,572 | $ | 1,211,928 | |||||||||
Net income (GAAP) | $ | 40,183 | $ | 50,400 | $ | 50,082 | $ | 215,383 | $ | 145,535 | |||||||||
Amortization of intangibles, net of tax | 2,318 | 2,172 | 2,210 | 8,790 | 9,086 | ||||||||||||||
Tangible net income (non-GAAP) | $ | 42,501 | $ | 52,572 | $ | 52,292 | $ | 224,173 | $ | 154,621 | |||||||||
Net income (GAAP) | $ | 40,183 | $ | 50,400 | $ | 50,082 | $ | 215,383 | $ | 145,535 | |||||||||
Provision for credit losses | (1,110 | ) | (1,582 | ) | 1,617 | (16,774 | ) | 67,177 | |||||||||||
Provision for income taxes | 9,410 | 14,829 | 10,408 | 54,798 | 31,900 | ||||||||||||||
(Gain)/loss on equity investment net of noncontrolling interest | - | - | $ | - | 30 | (17,626 | ) | ||||||||||||
Pre-provision, pre-tax net revenues (non-GAAP) | $ | 48,483 | $ | 63,647 | $ | 62,107 | $ | 253,437 | $ | 226,986 | |||||||||
Total revenue (GAAP) | $ | 160,424 | $ | 170,076 | $ | 171,848 | $ | 680,331 | $ | 664,335 | |||||||||
Net (gain) loss on investment securities | - | - | - | (1,252 | ) | (9,634 | ) | ||||||||||||
Net (gain) loss on equity investment | - | - | - | 30 | (17,626 | ) | |||||||||||||
Total revenue for efficiency calculation (non-GAAP) | $ | 160,424 | $ | 170,076 | $ | 171,848 | $ | 679,109 | $ | 637,075 | |||||||||
Noninterest expense (GAAP) | $ | 110,467 | $ | 104,086 | $ | 105,932 | $ | 417,272 | $ | 395,825 | |||||||||
Less: Amortization of intangibles | 2,935 | 2,750 | 2,797 | 11,127 | 11,498 | ||||||||||||||
Noninterest expense net of amortization (non-GAAP) | $ | 107,532 | $ | 101,336 | $ | 103,135 | $ | 406,145 | $ | 384,327 |