SUFFOLK, Va., July 23, 2020 (GLOBE NEWSWIRE) -- TowneBank (the “Company”) (NASDAQ: TOWN) today reported earnings for the quarter ended June 30, 2020 of $34.61 million, or $0.48 per diluted share, compared to $34.64 million, or $0.48 per diluted share, for the quarter ended June 30, 2019.
“Our second quarter performance demonstrated the benefits of our diverse revenue model. Despite the headwinds from economic uncertainty and increased credit provisions, we delivered a solid quarter highlighted by rebounds in noninterest income from our Realty segment. Our deposits climbed to record levels enhancing liquidity and strong capital ratios position us well to navigate the challenging environment. We will also continue to be diligent in our focus on credit risk management,” said G. Robert Aston, Jr., Executive Chairman.
Highlights for Second Quarter 2020 Compared to Second Quarter 2019:
- Total revenues were a record $162.66 million, an increase of $18.12 million, or 12.54%.
- Loans held for investment were $9.80 billion, an increase of $1.68 billion, or 20.61%, from June 30, 2019, and $1.02 billion, or 11.59%, from March 31, 2020. The balance at June 30, 2020 included $1.09 billion of loans originated under the Small Business Administration’s Paycheck Protection Program (“PPP”).
- Total deposits were $11.26 billion, an increase of $2.00 billion, or 21.54%, compared to prior year and $1.96 billion, or 21.02%, from March 31, 2020.
- Noninterest bearing deposits increased by 43.23%, to $4.23 billion, representing 37.52% of total deposits. Compared to the linked quarter, noninterest bearing deposits increased 38.09%.
- Annualized return on common shareholders' equity was 8.24% and annualized return on average tangible common shareholders' equity was 12.44% (non-GAAP).
- Net interest margin for the quarter was 2.85% and taxable equivalent net interest margin (non-GAAP) was 2.87%.
- Effective tax rate of 17.74% in the quarter compared to 20.47% in the second quarter of 2019.
“I am especially proud of the outstanding service our teammates delivered to our members and the communities we serve. At Towne, we delivered over $1 billion in PPP funding to support businesses in our communities helping to save nearly 130,000 jobs for local families. In addition, we created more than 650 new relationships out of the PPP process,” stated J. Morgan Davis, President and Chief Executive Officer.
Quarterly Net Interest Income Compared to Second Quarter 2019:
- Net interest income was $93.27 million compared to $89.82 million at June 30, 2019.
- Taxable equivalent net interest margin (non-GAAP) was 2.87%, including accretion of 8 basis points, compared to 3.52%, including accretion of 11 basis points, for second quarter 2019.
- Average loans held for investment, with an average yield of 4.29%, represented 73.10% of average earning assets at June 30, 2020 compared to an average yield of 5.08% and 78.27% of average earning assets in the second quarter of 2019. Excluding PPP, loan yields were 4.42% in second quarter 2020.
- Total cost of deposits decreased to 0.58% from 0.99% at June 30, 2019.
- Average interest-earning assets totaled $13.16 billion at June 30, 2020 compared to $10.32 billion at June 30, 2019, an increase of 27.56%.
- Average interest-bearing liabilities totaled $8.64 billion, an increase of $1.69 billion from prior year.
Quarterly Provision for Credit Losses:
- Recorded a quarterly provision for credit losses for on-balance-sheet loans of $25.99 million compared to $2.82 million one year ago and $5.76 million in the linked quarter. This increase is primarily attributable to management's expectation of continued economic weakness driven by the impact of the COVID-19 pandemic. Expected loss estimates consider various factors including the impacts of the decreased economic activity and higher unemployment rates, customer specific credit information, and the potential mitigating benefits of government stimulus and industry wide loan modification efforts.
- Net loan recoveries were $0.10 million compared to charge-offs of $1.60 million one year prior. The ratio of net loan charge-offs to average loans on an annualized basis was 0.03% in the linked quarter and 0.08% in the second quarter of 2019.
- Recorded a provision for credit losses on off-balance-sheet commitments of $1.08 million compared to $1.10 million in the linked quarter.
- Recorded a recovery of credit losses on debt securities of $0.13 million compared to a credit loss of $0.16 million in the linked quarter.
- The allowance for credit losses on loans represented 0.92% of total loans compared to 0.73% at March 31, 2020 and 0.67% at June 30, 2019. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses was 1.04%. The allowance for credit losses on loans was 5.34 times nonperforming loans compared to 3.85 times at March 31, 2020 and 3.00 times at June 30, 2019.
Quarterly Noninterest Income Compared to Second Quarter 2019:
- Total noninterest income was $69.38 million compared to $54.72 million in 2019, an increase of $14.66 million, or 26.80%. Residential mortgage banking income increased $11.15 million and real estate brokerage and property management income increased $1.94 million, while service charges on deposit accounts decreased $1.30 million. Also included in noninterest income are net gains on investment securities of $2.93 million as compared to no gains or losses in the prior year.
- Residential mortgage banking recorded income of $29.72 million compared to $18.57 million in second quarter 2019. Loan volume in the current quarter was $1.47 billion, with purchase activity comprising 51.26% of that volume. Loan volume in second quarter 2019 was $821.13 million, with purchase activity comprising 84.97%. Increased refinancing activity due to the mortgage rate environment in second quarter 2020, coupled with improved margins were the primary drivers of improvement compared to the prior year quarter.
- Total Insurance segment revenue increased 3.30% to $20.87 million in the second quarter due to organic growth and additional income from a third quarter 2019 agency acquisition.
- Property management fee revenue increased 36.05%, or $2.15 million, compared to second quarter 2019. Reservations were down significantly in first quarter 2020 due to travel restrictions driven by COVID-19 and the uncertainty surrounding summer travel. The lifting of local travel restrictions, in the areas of our vacation rental companies, drove increased reservation activity during the quarter.
- Service charges are down $1.30 million, or 40.72%, compared to second quarter 2019 primarily due to a decrease in interchange fees related to Durbin Amendment compliance, combined with a lower transaction volumes and fees waived for members experiencing financial hardships.
Quarterly Noninterest Expense Compared to Second Quarter 2019:
- Total noninterest expense was $91.03 million compared to $96.56 million in 2019, a decrease of $5.53 million, or 5.73%. Declines across most expense categories were partially offset by increases in salary and benefits expense of $2.66 million and software expense of $0.70 million.
- Market expansion and infrastructure enhancements, that occurred in 2019, have resulted in generally higher levels of salary and benefits expense and software expense, while quarantines, travel restrictions, and other decreases in business activity related to COVID-19 have resulted in lower general spending.
Quarterly Income Taxes Compared to Second Quarter 2019:
- Income tax expense was $7.46 million compared to $8.92 million one year prior. This represents an effective tax rate of 17.74% compared to 20.47% in the second quarter of 2019.
Consolidated Balance Sheet Highlights:
- Total assets were $15.58 billion for the quarter ended June 30, 2020, an increase of $3.63 billion, or 30.40%, compared to $12.62 billion at March 31, 2020. Total assets increased $3.64 billion, or 30.46%, from $11.94 billion at June 30, 2019. The year-to-date increase was driven primarily by growth in cash and cash equivalents and loans held for investment tied to PPP lending activities.
- Loans held for investment increased $1.68 billion, or 20.61%, compared to prior year and $1.02 billion compared the linked quarter. Excluding PPP loans of $1.09 billion, loans held for investment increased $0.59 billion, or 7.20%, compared to prior year, but declined $72.31 million, or 0.82%, compared to the linked quarter.
- Mortgage loans held for sale increased $247.60 million, or 68.25%, compared to the prior year and $157.23 million, or 34.70%, compared to the linked quarter.
- Total deposits increased $2.0 billion, or 21.54%, compared to the prior year and $1.96 billion, or 21.02%, compared to the linked quarter.
- Total borrowings increased $1.49 billion, or 178.23%, from prior year and $0.94 billion, or 67.22%, compared to the linked quarter. These increases were driven by $1.11 billion in borrowings under the FRB PPP lending facility, which we used to facilitate funding of the PPP loans.
Investment Securities:
- Total investment securities were $1.36 billion compared to $1.35 billion at March 31, 2020 and $1.35 billion at June 30, 2019. The weighted average duration of the portfolio at June 30, 2020 was 4.1 years. The carrying value of the AFS debt securities portfolio included $59.89 million in net unrealized gains compared to $19.73 million in net unrealized gains at December 31, 2019. During the second quarter of 2020, we sold $40.0 million in AFS debt securities at a gain of $2.93 million to reposition the portfolio.
Loans and Asset Quality:
- Total loans held for investment were $9.80 billion at June 30, 2020 compared to $8.78 billion at March 31, 2020 and $8.13 billion at June 30, 2019.
- Nonperforming assets were $29.25 million, or 0.19% of total assets, compared to $34.23 million, or 0.29%, at June 30, 2019.
- Nonperforming loans were 0.17% of period end loans compared to 0.22% at June 30, 2019.
- Foreclosed property decreased to $12.32 million from $14.52 million at June 30, 2019.
- Expected loss estimates are subject to change based on continuing review of models and assumptions, portfolio performance, changes in forecasted macroeconomic conditions and loan mix which could result in material changes to the reserve in future periods.
Deposits and Borrowings:
- Total deposits were $11.26 billion compared to $9.31 billion at March 31, 2020 and $9.27 billion at June 30, 2019.
- Total loans to deposits were 87.01% compared to 94.37% at March 31, 2020 and 87.68% at June 30, 2019.
- Non-interest bearing deposits were 37.52% of total deposits at June 30, 2020 compared to 32.88% at March 31, 2020 and 31.83% at June 30, 2019.
- Total borrowings were $2.33 billion compared to $1.39 billion at March 31, 2020 and $0.84 billion at June 30, 2019.
Capital:
- Common equity tier 1 capital ratio of 11.54%.
- Tier 1 leverage capital ratio of 9.05%.
- Tier 1 risk-based capital ratio of 11.67%.
- Total risk-based capital ratio of 14.91%.
- Book value was $23.50 compared to $22.77 at March 31, 2020 and $21.95 at June 30, 2019.
- Tangible book value (non-GAAP) was $16.68 compared to $15.91 at March 31, 2020 and $15.05 at June 30, 2019.
About TowneBank:As one of the top community banks in Virginia and North Carolina, TowneBank operates 42 banking offices serving Chesapeake, Chesterfield County, Glen Allen, Hampton, James City County, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach, Williamsburg, and York County in Virginia, along with Raleigh, Cary, Charlotte, Greensboro, Greenville, Moyock, Grandy, Camden County, Southern Shores, Corolla, Duck and Nags Head in North Carolina. TowneBank also offers a full range of financial services 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. Local decision-making is a hallmark of its hometown banking strategy that is delivered through the leadership of each group’s President and Board of Directors. With total assets of $15.58 billion as of June 30, 2020, TowneBank is one of the largest banks headquartered in Virginia.
Non-GAAP Financial Measures:This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in its analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.
Forward-Looking Statements:Certain statements contained in this release constitute forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements speak only as of the date of this release, are based on current expectations, and involve a number of assumptions. These include statements regarding TowneBank’s future economic performance, financial condition, prospects, growth, strategies and expectations, and objectives of management, and are generally identified by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” or “project” or similar expressions. TowneBank intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. You should not place undue reliance on forward-looking statements, which are subject to assumptions that are subject to change. TowneBank’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ from those indicated or implied in the forward-looking statements and such differences may be material. Factors which could have a material effect on the operations and future prospects of TowneBank include but are not limited to: the impacts of the ongoing coronavirus (COVID-19) pandemic, changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the quality and composition of TowneBank’s loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in TowneBank’s market area; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; changes in accounting principles, policies and guidelines; and other risk factors detailed from time to time in filings made by TowneBank with the Federal Deposit Insurance Corporation. TowneBank undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
Media contact:G. Robert Aston, Jr., Executive Chairman, 757-638-6780J. Morgan Davis, President and Chief Executive Officer, 757-673-1673
Investor contact:William B. Littreal, Chief Financial Officer, 757-638-6813
| TOWNEBANK | ||||||||||||||||||||
| Selected Financial Highlights (unaudited) | ||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||
| Income and Performance Ratios: | ||||||||||||||||||||
| Total Revenue | $ | 162,656 | $ | 137,696 | $ | 139,671 | $ | 145,879 | $ | 144,537 | ||||||||||
| Net income | 37,222 | 27,605 | 35,948 | 39,400 | 36,242 | |||||||||||||||
| Net income attributable to TowneBank | 34,605 | 26,384 | 35,075 | 37,659 | 34,638 | |||||||||||||||
| Net income per common share - diluted | 0.48 | 0.36 | 0.49 | 0.52 | 0.48 | |||||||||||||||
| Book value per common share | 23.50 | 22.77 | 22.58 | 22.38 | 21.95 | |||||||||||||||
| Book value per common share - tangible (non-GAAP) | 16.68 | 15.91 | 15.69 | 15.44 | 15.05 | |||||||||||||||
| Return on average assets | 0.97 | % | 0.88 | % | 1.16 | % | 1.26 | % | 1.20 | % | ||||||||||
| Return on average assets - tangible (non-GAAP) | 1.07 | % | 1.00 | % | 1.30 | % | 1.40 | % | 1.35 | % | ||||||||||
| Return on average equity | 8.18 | % | 6.37 | % | 8.44 | % | 9.22 | % | 8.83 | % | ||||||||||
| Return on average equity - tangible (non-GAAP) | 12.32 | % | 9.91 | % | 12.97 | % | 14.20 | % | 13.90 | % | ||||||||||
| Return on average common equity | 8.24 | % | 6.42 | % | 8.51 | % | 9.29 | % | 8.89 | % | ||||||||||
| Return on average common equity - tangible (non-GAAP) | 12.44 | % | 10.01 | % | 13.12 | % | 14.36 | % | 14.05 | % | ||||||||||
| Noninterest income as a percentage of total revenue | 42.66 | % | 35.00 | % | 35.59 | % | 37.55 | % | 37.86 | % | ||||||||||
| Regulatory Capital Ratios (1): | ||||||||||||||||||||
| Common equity tier 1 | 11.54 | % | 11.23 | % | 11.46 | % | 11.52 | % | 11.58 | % | ||||||||||
| Tier 1 | 11.67 | % | 11.35 | % | 11.49 | % | 11.55 | % | 11.62 | % | ||||||||||
| Total | 14.91 | % | 14.40 | % | 14.58 | % | 14.70 | % | 14.85 | % | ||||||||||
| Tier 1 leverage ratio | 9.05 | % | 10.11 | % | 9.95 | % | 9.84 | % | 9.86 | % | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Allowance for credit losses on loans to nonperforming loans | 5.34x | 3.85x | 3.34x | 3.95x | 3.00x | |||||||||||||||
| Allowance for credit losses on loans to period end loans | 0.92 | % | 0.73 | % | 0.69 | % | 0.68 | % | 0.67 | % | ||||||||||
| Allowance for credit losses on loans to period end loans excluding PPP loans (non-GAAP) | 1.04 | % | 0.73 | % | 0.69 | % | 0.68 | % | 0.67 | % | ||||||||||
| Nonperforming loans to period end loans | 0.17 | % | 0.19 | % | 0.21 | % | 0.17 | % | 0.22 | % | ||||||||||
| Nonperforming assets to period end assets | 0.19 | % | 0.24 | % | 0.27 | % | 0.26 | % | 0.29 | % | ||||||||||
| Net charge-offs to average loans (annualized) | — | % | 0.03 | % | 0.04 | % | 0.03 | % | 0.08 | % | ||||||||||
| Nonperforming loans | $ | 16,935 | $ | 16,700 | $ | 17,437 | $ | 14,016 | $ | 18,202 | ||||||||||
| Former bank premises | — | — | 1,521 | 1,510 | 1,510 | |||||||||||||||
| Foreclosed property | 12,315 | 13,053 | 13,839 | 15,517 | 14,517 | |||||||||||||||
| Total nonperforming assets | $ | 29,250 | $ | 29,753 | $ | 32,797 | $ | 31,043 | $ | 34,229 | ||||||||||
| Loans past due 90 days and still accruing interest | $ | 464 | $ | 91 | $ | 309 | $ | 636 | $ | 415 | ||||||||||
| Allowance for credit losses on loans | $ | 90,467 | $ | 64,372 | $ | 58,234 | $ | 55,428 | $ | 54,527 | ||||||||||
| Mortgage Banking: | ||||||||||||||||||||
| Loans originated, mortgage | $ | 1,116,782 | $ | 718,681 | $ | 628,279 | $ | 703,922 | $ | 574,638 | ||||||||||
| Loans originated, joint venture | 357,815 | 204,522 | 231,879 | 259,742 | 246,491 | |||||||||||||||
| Total loans originated | $ | 1,474,597 | $ | 923,203 | $ | 860,158 | $ | 963,664 | $ | 821,129 | ||||||||||
| Number of loans originated | 4,818 | 3,025 | 2,984 | 3,360 | 3,121 | |||||||||||||||
| Number of originators | 216 | 223 | 217 | 225 | 229 | |||||||||||||||
| Purchase % | 51.26 | % | 61.31 | % | 70.32 | % | 68.83 | % | 84.97 | % | ||||||||||
| Loans sold | $ | 1,398,649 | $ | 809,834 | $ | 879,910 | $ | 925,058 | $ | 694,832 | ||||||||||
| Gross realized gain on sales and fees as a % of loans originated | 3.17 | % | 1.80 | % | 3.38 | % | 3.45 | % | 3.43 | % | ||||||||||
| Other Ratios: | ||||||||||||||||||||
| Net interest margin | 2.85 | % | 3.35 | % | 3.33 | % | 3.41 | % | 3.49 | % | ||||||||||
| Net interest margin-fully tax equivalent (non-GAAP) | 2.87 | % | 3.37 | % | 3.35 | % | 3.43 | % | 3.52 | % | ||||||||||
| Average earning assets/total average assets | 91.33 | % | 89.15 | % | 89.57 | % | 89.53 | % | 89.46 | % | ||||||||||
| Average loans/average deposits | 91.81 | % | 92.99 | % | 88.41 | % | 87.63 | % | 91.60 | % | ||||||||||
| Average noninterest deposits/total average deposits | 36.52 | % | 32.21 | % | 32.14 | % | 31.82 | % | 31.63 | % | ||||||||||
| Period end equity/period end total assets | 11.05 | % | 13.19 | % | 13.84 | % | 13.63 | % | 13.45 | % | ||||||||||
| Efficiency ratio | 56.99 | % | 73.02 | % | 66.11 | % | 66.66 | % | 66.80 | % | ||||||||||
| (1) Current reporting period regulatory capital ratios are preliminary | ||||||||||||||||||||
| TOWNEBANK | |||||||||||||||||
| Selected Data (unaudited) | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Investment Securities | % Change | ||||||||||||||||
| Q2 | Q2 | Q1 | Q2 20 vs. | Q2 20 vs. | |||||||||||||
| Available-for-sale securities, at fair value | 2020 | 2019 | 2020 | Q2 19 | Q1 20 | ||||||||||||
| U.S. agency securities | $ | 118,176 | $ | 261,960 | $ | 121,857 | (54.89 | )% | (3.02 | )% | |||||||
| U.S. Treasury notes | 1,010 | 2,241 | 1,014 | (54.93 | )% | (0.39 | )% | ||||||||||
| Municipal securities | 313,322 | 167,466 | 266,489 | 87.10 | % | 17.57 | % | ||||||||||
| Trust preferred and other corporate securities | 59,598 | 43,799 | 59,606 | 36.07 | % | (0.01 | )% | ||||||||||
| Mortgage-backed securities issued by GSE and GNMA | 774,658 | 785,355 | 799,713 | (1.36 | )% | (3.13 | )% | ||||||||||
| Allowance for credit losses | (140 | ) | n/a | (259 | ) | n/a | (45.95 | )% | |||||||||
| Total | $ | 1,266,624 | $ | 1,260,821 | $ | 1,248,420 | 0.46 | % | 1.46 | % | |||||||
| Gross unrealized gains (losses) reflected in financial statements | |||||||||||||||||
| Total gross unrealized gains | $ | 61,559 | $ | 22,119 | $ | 30,545 | 178.31 | % | 101.54 | % | |||||||
| Total gross unrealized losses | (1,674 | ) | (2,456 | ) | (9,848 | ) | (31.84 | )% | (83.00 | )% | |||||||
| Net unrealized gains (losses) and other adjustments on AFS securities | $ | 59,885 | $ | 19,663 | $ | 20,697 | |||||||||||
| Held-to-maturity securities, at amortized cost | |||||||||||||||||
| Municipal securities | $ | 28,855 | $ | 34,458 | $ | 28,852 | (16.26 | )% | 0.01 | % | |||||||
| Trust preferred corporate securities | 2,345 | 2,393 | 2,357 | (2.01 | )% | (0.51 | )% | ||||||||||
| Mortgage-backed securities issued by GSE and GNMA | 10,395 | 13,723 | 11,222 | (24.25 | )% | (7.37 | )% | ||||||||||
| Less: Allowance for credit losses | (121 | ) | n/a | (133 | ) | n/a | (9.02 | )% | |||||||||
| Total | $ | 41,474 | $ | 50,574 | $ | 42,298 | (17.99 | )% | (1.95 | )% | |||||||
| Gross unrealized gains (losses) not reflected in financial statements | |||||||||||||||||
| Total gross unrealized gains | $ | 1,980 | $ | 1,636 | $ | 964 | 21.03 | % | 105.39 | % | |||||||
| Total gross unrealized losses | — | (57 | ) | — | (100.00 | )% | — | % | |||||||||
| Net unrealized gains (losses) in HTM securities | $ | 1,980 | $ | 1,579 | $ | 964 | |||||||||||
| Loans Held For Investment (1) | % Change | ||||||||||||||||
| Q2 | Q2 | Q1 | Q2 20 vs. | Q2 20 vs. | |||||||||||||
| 2020 | 2019 | 2020 | Q2 19 | Q1 20 | |||||||||||||
| Real estate - construction and development | $ | 1,178,832 | $ | 1,107,762 | $ | 1,060,834 | 6.42 | % | 11.12 | % | |||||||
| Commercial real estate - non owner occupied | 2,332,447 | 1,985,990 | 2,305,971 | 17.45 | % | 1.15 | % | ||||||||||
| Commercial real estate - owner occupied | 1,383,294 | 1,288,478 | 1,398,216 | 7.36 | % | (1.07 | )% | ||||||||||
| Real estate - multifamily | 277,947 | 267,528 | 283,514 | 3.89 | % | (1.96 | )% | ||||||||||
| Real estate - residential 1-4 family and HELOC | 1,670,530 | 1,639,547 | 1,693,562 | 1.89 | % | (1.36 | )% | ||||||||||
| Commercial and industrial business | 2,503,161 | 1,523,607 | 1,636,244 | 64.29 | % | 52.98 | % | ||||||||||
| Consumer and other loans | 455,678 | 313,817 | 405,854 | 45.21 | % | 12.28 | % | ||||||||||
| Total | $ | 9,801,889 | $ | 8,126,729 | $ | 8,784,195 | 20.61 | % | 11.59 | % | |||||||
| (1) Paycheck Protection Program loans totaling $1.09 billion, primarily in C&I, are included in Q2 2020. | |||||||||||||||||
| Deposits | % Change | ||||||||||||||||
| Q2 | Q2 | Q1 | Q2 20 vs. | Q2 20 vs. | |||||||||||||
| 2020 | 2019 | 2020 | Q2 19 | Q1 20 | |||||||||||||
| Noninterest-bearing demand | $ | 4,226,208 | $ | 2,950,615 | $ | 3,060,515 | 43.23 | % | 38.09 | % | |||||||
| Interest-bearing: | |||||||||||||||||
| Demand and money market accounts | 4,223,391 | 3,409,322 | 3,573,926 | 23.88 | % | 18.17 | % | ||||||||||
| Savings | 298,673 | 277,495 | 280,807 | 7.63 | % | 6.36 | % | ||||||||||
| Certificates of deposits | 2,516,666 | 2,631,386 | 2,392,744 | (4.36 | )% | 5.18 | % | ||||||||||
| Total | $ | 11,264,938 | $ | 9,268,818 | $ | 9,307,992 | 21.54 | % | 21.02 | % | |||||||
| TOWNEBANK | ||||||||||||||||||||||||||||||||
| Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 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) | $ | 9,619,931 | $ | 102,656 | 4.29 | % | $ | 8,550,216 | $ | 100,566 | 4.73 | % | $ | 8,075,054 | $ | 102,366 | 5.08 | % | ||||||||||||||
| Taxable investment securities | 1,198,776 | 7,367 | 2.46 | % | 1,356,411 | 9,211 | 2.72 | % | 1,170,215 | 8,346 | 2.85 | % | ||||||||||||||||||||
| Tax-exempt investment securities | 147,489 | 836 | 2.27 | % | 128,204 | 861 | 2.69 | % | 90,942 | 756 | 3.33 | % | ||||||||||||||||||||
| Total securities | 1,346,265 | 8,203 | 2.44 | % | 1,484,615 | 10,072 | 2.71 | % | 1,261,157 | 9,102 | 2.89 | % | ||||||||||||||||||||
| Interest-bearing deposits | 1,729,140 | 433 | 0.10 | % | 373,984 | 1,102 | 1.19 | % | 698,649 | 4,016 | 2.31 | % | ||||||||||||||||||||
| Loans held for sale | 464,796 | 3,811 | 3.28 | % | 333,070 | 2,988 | 3.59 | % | 281,775 | 3,007 | 4.27 | % | ||||||||||||||||||||
| Total earning assets | 13,160,132 | 115,103 | 3.52 | % | 10,741,885 | 114,728 | 4.30 | % | 10,316,635 | 118,491 | 4.61 | % | ||||||||||||||||||||
| Less: allowance for credit losses | (69,451 | ) | (55,331 | ) | (53,386 | ) | ||||||||||||||||||||||||||
| Total nonearning assets | 1,318,787 | 1,362,769 | 1,269,029 | |||||||||||||||||||||||||||||
| Total assets | $ | 14,409,468 | $ | 12,049,323 | $ | 11,532,278 | ||||||||||||||||||||||||||
| Liabilities and Equity: | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||
| Demand and money market | $ | 3,857,757 | $ | 2,491 | 0.26 | % | $ | 3,521,707 | $ | 5,319 | 0.61 | % | $ | 3,312,313 | $ | 7,025 | 0.85 | % | ||||||||||||||
| Savings | 290,201 | 554 | 0.77 | % | 276,947 | 593 | 0.86 | % | 281,221 | 929 | 1.33 | % | ||||||||||||||||||||
| Certificates of deposit | 2,503,648 | 12,027 | 1.93 | % | 2,434,098 | 13,150 | 2.17 | % | 2,433,479 | 13,830 | 2.28 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 6,651,606 | 15,072 | 0.91 | % | 6,232,752 | 19,062 | 1.23 | % | 6,027,013 | 21,784 | 1.45 | % | ||||||||||||||||||||
| Borrowings | 1,741,832 | 3,238 | 0.74 | % | 679,745 | 2,581 | 1.50 | % | 678,799 | 3,318 | 1.93 | % | ||||||||||||||||||||
| Subordinated debt, net | 248,660 | 2,962 | 4.76 | % | 248,510 | 2,962 | 4.77 | % | 248,064 | 2,962 | 4.78 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 8,642,098 | 21,272 | 0.99 | % | 7,161,007 | 24,605 | 1.38 | % | 6,953,876 | 28,064 | 1.62 | % | ||||||||||||||||||||
| Demand deposits | 3,826,439 | 2,962,110 | 2,788,596 | |||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 239,154 | 260,500 | 215,951 | |||||||||||||||||||||||||||||
| Total liabilities | 12,707,691 | 10,383,617 | 9,958,423 | |||||||||||||||||||||||||||||
| Shareholders’ equity | 1,701,777 | 1,665,706 | 1,573,855 | |||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 14,409,468 | $ | 12,049,323 | $ | 11,532,278 | ||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 93,831 | $ | 90,123 | $ | 90,427 | ||||||||||||||||||||||||||
| Reconcilement of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
| Tax-equivalent basis adjustment | (557 | ) | (627 | ) | (608 | ) | ||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 93,274 | $ | 89,496 | $ | 89,819 | ||||||||||||||||||||||||||
| Interest rate spread (2)(4) | 2.53 | % | 2.92 | % | 2.99 | % | ||||||||||||||||||||||||||
| Interest expense as a percent of average earning assets | 0.65 | % | 0.92 | % | 1.09 | % | ||||||||||||||||||||||||||
| Net interest margin (tax equivalent basis) (3)(4) | 2.87 | % | 3.37 | % | 3.52 | % | ||||||||||||||||||||||||||
| Total cost of deposits | 0.58 | % | 0.83 | % | 0.99 | % | ||||||||||||||||||||||||||
(1) Includes average PPP balances of $0.81 billion and related interest and fee income of $5.8 million.(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) | |||||||||||||||||||||||||||||||||
| Six Months Ended | Six Months Ended | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| June 30, 2020 | June 30, 2019 | 2020 Compared with 2019 | |||||||||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Increase | Change Due to | ||||||||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | (Decrease) | Rate | Volume | |||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||
| Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1) | $ | 9,085,074 | $ | 203,221 | 4.50 | % | $ | 8,053,146 | $ | 202,512 | 5.07 | % | $ | 709 | $ | (24,050 | ) | $ | 24,759 | ||||||||||||||
| Taxable investment securities | 1,277,593 | 16,578 | 2.60 | % | 1,103,799 | 15,875 | 2.88 | % | 703 | (1,646 | ) | 2,349 | |||||||||||||||||||||
| Tax-exempt investment securities | 137,846 | 1,698 | 2.46 | % | 85,158 | 1,522 | 3.57 | % | 176 | (571 | ) | 747 | |||||||||||||||||||||
| Total securities | 1,415,439 | 18,276 | 2.58 | % | 1,188,957 | 17,397 | 2.93 | % | 879 | (2,217 | ) | 3,096 | |||||||||||||||||||||
| Interest-bearing deposits | 472,589 | 1,535 | 0.65 | % | 695,999 | 8,013 | 2.32 | % | (6,478 | ) | (4,478 | ) | (2,000 | ) | |||||||||||||||||||
| Loans held for sale | 398,933 | 6,799 | 3.41 | % | 230,411 | 5,010 | 4.35 | % | 1,789 | (1,264 | ) | 3,053 | |||||||||||||||||||||
| Total earning assets | 11,372,035 | 229,831 | 4.06 | % | 10,168,513 | 232,932 | 4.62 | % | (3,101 | ) | (32,009 | ) | 28,908 | ||||||||||||||||||||
| Less: allowance for loan losses | (62,390 | ) | (53,117 | ) | |||||||||||||||||||||||||||||
| Total nonearning assets | 1,919,751 | 1,249,052 | |||||||||||||||||||||||||||||||
| Total assets | $ | 13,229,396 | $ | 11,364,448 | |||||||||||||||||||||||||||||
| Liabilities and Equity: | |||||||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||||||
| Demand and money market | $ | 3,689,732 | $ | 7,809 | 0.43 | % | $ | 3,243,616 | $ | 13,264 | 0.82 | % | $ | (5,455 | ) | $ | (7,097 | ) | $ | 1,642 | |||||||||||||
| Savings | 283,574 | 1,147 | 0.81 | % | 283,348 | 1,956 | 1.39 | % | (809 | ) | (811 | ) | 2 | ||||||||||||||||||||
| Certificates of deposit | 2,468,873 | 25,177 | 2.05 | % | 2,362,165 | 25,738 | 2.20 | % | (561 | ) | (1,724 | ) | 1,163 | ||||||||||||||||||||
| Total interest-bearing deposits | 6,442,179 | 34,133 | 1.07 | % | 5,889,129 | 40,958 | 1.40 | % | (6,825 | ) | (9,632 | ) | 2,807 | ||||||||||||||||||||
| Borrowings | 1,210,789 | 5,820 | 0.95 | % | 749,948 | 7,540 | 2.00 | % | (1,720 | ) | (5,083 | ) | 3,363 | ||||||||||||||||||||
| Subordinated debt, net | 248,585 | 5,923 | 4.77 | % | 247,989 | 5,923 | 4.78 | % | — | (14 | ) | 14 | |||||||||||||||||||||
| Total interest-bearing liabilities | 7,901,553 | 45,876 | 1.17 | % | 6,887,066 | 54,421 | 1.59 | % | (8,545 | ) | (14,729 | ) | 6,184 | ||||||||||||||||||||
| Demand deposits | 3,394,275 | 2,710,141 | |||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 249,827 | 207,287 | |||||||||||||||||||||||||||||||
| Total liabilities | 11,545,655 | 9,804,494 | |||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,683,741 | 1,559,954 | |||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 13,229,396 | $ | 11,364,448 | |||||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 183,955 | $ | 178,511 | $ | 5,444 | $ | (17,280 | ) | $ | 22,724 | ||||||||||||||||||||||
| Reconcilement of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
| Tax-equivalent basis adjustment | (1,185 | ) | (1,219 | ) | 34 | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 182,770 | $ | 177,292 | $ | 5,478 | |||||||||||||||||||||||||||
| Interest rate spread (2)(4) | 2.90 | % | 3.03 | % | |||||||||||||||||||||||||||||
| Interest expense as a percent of average earning assets | 0.81 | % | 1.08 | % | |||||||||||||||||||||||||||||
| Net interest margin (tax equivalent basis) (3)(4) | 3.25 | % | 3.54 | % | |||||||||||||||||||||||||||||
| Total cost of deposits | 0.70 | % | 0.96 | % | |||||||||||||||||||||||||||||
| (1) Includes average PPP balances of $0.40 billion and related interest income of $5.8 million | |||||||||||||||||||||||||||||||||
| (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 share data) | |||||||
| June 30, | December 31, | ||||||
| 2020 | 2019 | ||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 115,724 | $ | 97,593 | |||
| Interest-bearing deposits at FRB - Richmond | 2,511,152 | 322,505 | |||||
| Interest-bearing deposits in financial institutions | 24,374 | 22,518 | |||||
| Total Cash and Cash Equivalents | 2,651,250 | 442,616 | |||||
| Securities available for sale, at fair value (amortized cost $1,206,878, allowance for credit losses of $140) (1) | 1,266,624 | 1,441,308 | |||||
| Securities held to maturity, at amortized cost (fair value $43,575 )(1) | 41,595 | 43,688 | |||||
| Less: allowance for credit losses | (121 | ) | — | ||||
| Securities held to maturity, net of allowance for credit losses | 41,474 | 43,688 | |||||
| Other equity securities | 6,497 | 6,462 | |||||
| FHLB stock | 49,277 | 30,094 | |||||
| Total Securities | 1,363,872 | 1,521,552 | |||||
| Mortgage loans held for sale | 610,369 | 419,233 | |||||
| Loans, net of unearned income and deferred costs | 9,801,889 | 8,419,288 | |||||
| Less: allowance for credit losses | (90,467 | ) | (58,234 | ) | |||
| Net Loans | 9,711,422 | 8,361,054 | |||||
| Premises and equipment, net | 257,533 | 231,806 | |||||
| Goodwill | 446,725 | 446,816 | |||||
| Other intangible assets, net | 48,632 | 54,399 | |||||
| BOLI | 242,493 | 243,062 | |||||
| Other assets | 247,962 | 227,125 | |||||
| TOTAL ASSETS | $ | 15,580,258 | $ | 11,947,663 | |||
| LIABILITIES AND EQUITY | |||||||
| Deposits: | |||||||
| Noninterest-bearing demand | $ | 4,226,208 | $ | 2,951,225 | |||
| Interest-bearing: | |||||||
| Demand and money market accounts | 4,223,391 | 3,586,364 | |||||
| Savings | 298,673 | 276,205 | |||||
| Certificates of deposit | 2,516,666 | 2,457,123 | |||||
| Total Deposits | 11,264,938 | 9,270,917 | |||||
| Advances from the FHLB | 906,365 | 471,687 | |||||
| Subordinated debt, net | 248,756 | 248,458 | |||||
| FRB PPP lending facility | 1,111,429 | — | |||||
| Repurchase agreements and other borrowings | 60,913 | 52,391 | |||||
| Total Borrowings | 2,327,463 | 772,536 | |||||
| Other liabilities | 266,314 | 250,516 | |||||
| TOTAL LIABILITIES | 13,858,715 | 10,293,969 | |||||
| Preferred stock | |||||||
| Authorized and unissued shares - 2,000,000 | — | — | |||||
| Common stock, $1.667 par: 150,000,000 shares authorized | |||||||
| 72,645,987 and 72,649,682 shares issued at June 30, 2020 and December 31, 2019, respectively | 121,101 | 121,107 | |||||
| Capital surplus | 1,043,774 | 1,041,160 | |||||
| Retained earnings | 499,502 | 467,186 | |||||
| Common stock issued to deferred compensation trust, at cost | |||||||
| 871,634 and 818,578 shares at June 30, 2020 and December 31, 2019, respectively | (16,776 | ) | (15,555 | ) | |||
| Deferred compensation trust | 16,776 | 15,555 | |||||
| Accumulated other comprehensive income (loss) | 43,218 | 11,302 | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 1,707,595 | 1,640,755 | |||||
| Noncontrolling interest | 13,948 | 12,939 | |||||
| TOTAL EQUITY | 1,721,543 | 1,653,694 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 15,580,258 | $ | 11,947,663 | |||
| (1) For 2020, disclosures are presented in compliance with ASC 326. | |||||||
| TOWNEBANK | |||||||||||||||
| Consolidated Statements of Income (unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| INTEREST INCOME: | |||||||||||||||
| Loans, including fees | $ | 102,139 | $ | 101,874 | $ | 202,201 | $ | 201,569 | |||||||
| Investment securities | 8,163 | 8,987 | 18,112 | 17,121 | |||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 433 | 4,015 | 1,535 | 8,013 | |||||||||||
| Mortgage loans held for sale | 3,811 | 3,007 | 6,799 | 5,010 | |||||||||||
| Total interest income | 114,546 | 117,883 | 228,647 | 231,713 | |||||||||||
| INTEREST EXPENSE: | |||||||||||||||
| Deposits | 15,072 | 21,784 | 34,134 | 40,958 | |||||||||||
| Advances from the FHLB | 2,595 | 3,201 | 5,088 | 7,354 | |||||||||||
| Subordinated debt, net | 2,962 | 2,962 | 5,923 | 5,924 | |||||||||||
| Repurchase agreements and other borrowings | 643 | 117 | 732 | 185 | |||||||||||
| Total interest expense | 21,272 | 28,064 | 45,877 | 54,421 | |||||||||||
| Net interest income | 93,274 | 89,819 | 182,770 | 177,292 | |||||||||||
| PROVISION FOR CREDIT LOSSES | 26,945 | 2,824 | 33,961 | 4,262 | |||||||||||
| Net interest income after provision for credit losses | 66,329 | 86,995 | 148,809 | 173,030 | |||||||||||
| NONINTEREST INCOME: | |||||||||||||||
| Residential mortgage banking income, net | 29,715 | 18,565 | 37,131 | 32,073 | |||||||||||
| Insurance commissions and other title fees and income, net | 17,612 | 17,213 | 34,505 | 32,795 | |||||||||||
| Real estate brokerage and property management income, net | 10,781 | 8,843 | 17,719 | 18,111 | |||||||||||
| Service charges on deposit accounts | 1,888 | 3,185 | 4,328 | 6,046 | |||||||||||
| Credit card merchant fees, net | 1,109 | 660 | 2,287 | 1,843 | |||||||||||
| BOLI | 1,584 | 1,635 | 4,690 | 3,233 | |||||||||||
| Other income | 3,763 | 4,617 | 8,990 | 7,774 | |||||||||||
| Net gain/(loss) on investment securities | 2,930 | — | 7,932 | (776 | ) | ||||||||||
| Total noninterest income | 69,382 | 54,718 | 117,582 | 101,099 | |||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||
| Salaries and employee benefits | 56,926 | 54,263 | 112,793 | 107,123 | |||||||||||
| Occupancy expense | 7,227 | 7,662 | 14,728 | 15,913 | |||||||||||
| Furniture and equipment | 3,564 | 3,578 | 7,205 | 6,949 | |||||||||||
| Amortization - intangibles | 2,901 | 3,113 | 5,851 | 6,305 | |||||||||||
| Software expense | 3,492 | 2,788 | 6,984 | 5,533 | |||||||||||
| Data processing | 2,718 | 3,616 | 5,509 | 6,782 | |||||||||||
| Professional fees | 2,972 | 3,707 | 6,040 | 6,386 | |||||||||||
| Advertising and marketing | 1,986 | 3,182 | 5,570 | 6,011 | |||||||||||
| Other expenses | 9,239 | 14,647 | 23,233 | 27,677 | |||||||||||
| Total noninterest expense | 91,025 | 96,556 | 187,913 | 188,679 | |||||||||||
| Income before income tax expense and noncontrolling interest | 44,686 | 45,157 | 78,478 | 85,450 | |||||||||||
| Provision for income tax expense | 7,464 | 8,915 | 13,651 | 17,126 | |||||||||||
| Net income | $ | 37,222 | $ | 36,242 | $ | 64,827 | $ | 68,324 | |||||||
| Net income attributable to noncontrolling interest | (2,617 | ) | (1,604 | ) | (3,838 | ) | (2,277 | ) | |||||||
| Net income attributable to TowneBank | $ | 34,605 | $ | 34,638 | $ | 60,989 | $ | 66,047 | |||||||
| Per common share information | |||||||||||||||
| Basic earnings | $ | 0.48 | $ | 0.48 | $ | 0.84 | $ | 0.92 | |||||||
| Diluted earnings | $ | 0.48 | $ | 0.48 | $ | 0.84 | $ | 0.92 | |||||||
| Cash dividends declared | $ | 0.18 | $ | 0.18 | $ | 0.36 | $ | 0.34 | |||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Balance Sheets - Five Quarter Trend | |||||||||||||||||||
| (dollars in thousands, except share data) | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
| (unaudited) | (unaudited) | (audited) | (unaudited) | (unaudited) | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 115,724 | $ | 108,929 | $ | 97,593 | $ | 124,439 | $ | 110,580 | |||||||||
| Interest-bearing deposits at FRB - Richmond | 2,511,152 | 753,643 | 322,505 | 675,288 | 834,505 | ||||||||||||||
| Interest-bearing deposits in financial institutions | 24,374 | 23,564 | 22,518 | 21,663 | 21,527 | ||||||||||||||
| Total Cash and Cash Equivalents | 2,651,250 | 886,136 | 442,616 | 821,390 | 966,612 | ||||||||||||||
| Securities available for sale | 1,266,624 | 1,248,420 | 1,441,308 | 1,337,395 | 1,260,821 | ||||||||||||||
| Securities held to maturity | 41,595 | 42,431 | 43,688 | 44,494 | 50,574 | ||||||||||||||
| Less: allowance for credit losses | (121 | ) | (133 | ) | — | — | — | ||||||||||||
| Securities held to maturity, net of allowance for credit losses | 41,474 | 42,298 | 43,688 | 44,494 | 50,574 | ||||||||||||||
| Other equity securities | 6,497 | 6,462 | 6,462 | 5,697 | 5,396 | ||||||||||||||
| FHLB stock | 49,277 | 52,042 | 30,094 | 26,282 | 32,657 | ||||||||||||||
| Total Securities | 1,363,872 | 1,349,222 | 1,521,552 | 1,413,868 | 1,349,448 | ||||||||||||||
| Mortgage loans held for sale | 610,369 | 453,143 | 419,233 | 456,719 | 362,773 | ||||||||||||||
| Loans, net of unearned income and deferred costs | 9,801,889 | 8,784,195 | 8,419,288 | 8,182,829 | 8,126,729 | ||||||||||||||
| Less: allowance for credit losses | (90,467 | ) | (64,372 | ) | (58,234 | ) | (55,428 | ) | (54,527 | ) | |||||||||
| Net Loans | 9,711,422 | 8,719,823 | 8,361,054 | 8,127,401 | 8,072,202 | ||||||||||||||
| Premises and equipment, net | 257,533 | 236,735 | 231,806 | 231,060 | 230,177 | ||||||||||||||
| Goodwill | 446,725 | 446,725 | 446,816 | 446,423 | 442,881 | ||||||||||||||
| Other intangible assets, net | 48,632 | 51,448 | 54,399 | 57,404 | 58,391 | ||||||||||||||
| BOLI | 242,493 | 240,924 | 243,062 | 241,652 | 240,621 | ||||||||||||||
| Other assets | 247,962 | 239,670 | 227,125 | 225,374 | 219,375 | ||||||||||||||
| TOTAL ASSETS | $ | 15,580,258 | $ | 12,623,826 | $ | 11,947,663 | $ | 12,021,291 | $ | 11,942,480 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 4,226,208 | $ | 3,060,515 | $ | 2,951,225 | $ | 3,030,505 | $ | 2,950,615 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Demand and money market accounts | 4,223,391 | 3,573,926 | 3,586,364 | 3,534,252 | 3,409,322 | ||||||||||||||
| Savings | 298,673 | 280,807 | 276,205 | 280,552 | 277,495 | ||||||||||||||
| Certificates of deposit | 2,516,666 | 2,392,744 | 2,457,123 | 2,592,705 | 2,631,386 | ||||||||||||||
| Total Deposits | 11,264,938 | 9,307,992 | 9,270,917 | 9,438,014 | 9,268,818 | ||||||||||||||
| Advances from the FHLB | 906,365 | 971,527 | 471,687 | 381,846 | 532,004 | ||||||||||||||
| Subordinated debt, net | 248,756 | 248,607 | 248,458 | 248,309 | 248,160 | ||||||||||||||
| FRB PPP lending facility | 1,111,429 | — | — | — | — | ||||||||||||||
| Repurchase agreements and other borrowings | 60,913 | 171,762 | 52,391 | 42,971 | 56,355 | ||||||||||||||
| Total Borrowings | 2,327,463 | 1,391,896 | 772,536 | 673,126 | 836,519 | ||||||||||||||
| Other liabilities | 266,314 | 258,306 | 250,516 | 271,617 | 230,691 | ||||||||||||||
| TOTAL LIABILITIES | 13,858,715 | 10,958,194 | 10,293,969 | 10,382,757 | 10,336,028 | ||||||||||||||
| Preferred stock | |||||||||||||||||||
| Authorized shares - 2,000,000 | — | — | — | — | — | ||||||||||||||
| Common stock, $1.667 par value | 121,101 | 121,057 | 121,107 | 121,080 | 121,038 | ||||||||||||||
| Capital surplus | 1,043,774 | 1,041,870 | 1,041,160 | 1,039,156 | 1,036,982 | ||||||||||||||
| Retained earnings | 499,502 | 477,972 | 467,186 | 445,186 | 420,600 | ||||||||||||||
| Common stock issued to deferred compensation trust, at cost | (16,776 | ) | (15,562 | ) | (15,555 | ) | (15,317 | ) | (15,160 | ) | |||||||||
| Deferred compensation trust | 16,776 | 15,562 | 15,555 | 15,317 | 15,160 | ||||||||||||||
| Accumulated other comprehensive income (loss) | 43,218 | 12,301 | 11,302 | 19,958 | 15,143 | ||||||||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 1,707,595 | 1,653,200 | 1,640,755 | 1,625,380 | 1,593,763 | ||||||||||||||
| Noncontrolling interest | 13,948 | 12,432 | 12,939 | 13,154 | 12,689 | ||||||||||||||
| TOTAL EQUITY | 1,721,543 | 1,665,632 | 1,653,694 | 1,638,534 | 1,606,452 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 15,580,258 | $ | 12,623,826 | $ | 11,947,663 | $ | 12,021,291 | $ | 11,942,480 | |||||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Statements of Income - Five Quarter Trend (unaudited) | |||||||||||||||||||
| (dollars in thousands, except share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
| INTEREST INCOME: | |||||||||||||||||||
| Loans, including fees | $ | 102,139 | $ | 100,062 | $ | 100,059 | $ | 102,047 | $ | 101,874 | |||||||||
| Investment securities | 8,163 | 9,949 | 9,936 | 9,889 | 8,987 | ||||||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 433 | 1,102 | 2,067 | 3,745 | 4,015 | ||||||||||||||
| Mortgage loans held for sale | 3,811 | 2,988 | 4,413 | 3,956 | 3,007 | ||||||||||||||
| Total interest income | 114,546 | 114,101 | 116,475 | 119,637 | 117,883 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||
| Deposits | 15,072 | 19,062 | 21,744 | 23,552 | 21,784 | ||||||||||||||
| Advances from the FHLB | 2,595 | 2,492 | 1,730 | 1,935 | 3,201 | ||||||||||||||
| Subordinated debt | 2,962 | 2,962 | 2,962 | 2,962 | 2,962 | ||||||||||||||
| Repurchase agreements and other borrowings | 643 | 89 | 80 | 85 | 117 | ||||||||||||||
| Total interest expense | 21,272 | 24,605 | 26,516 | 28,534 | 28,064 | ||||||||||||||
| Net interest income | 93,274 | 89,496 | 89,959 | 91,103 | 89,819 | ||||||||||||||
| PROVISION FOR CREDIT LOSSES | 26,945 | 7,016 | 3,601 | 1,508 | 2,824 | ||||||||||||||
| Net interest income after provision for credit losses | 66,329 | 82,480 | 86,358 | 89,595 | 86,995 | ||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||
| Residential mortgage banking income, net | 29,715 | 7,416 | 15,884 | 18,855 | 18,565 | ||||||||||||||
| Insurance commissions and other title fees and income, net | 17,612 | 16,893 | 15,001 | 16,681 | 17,213 | ||||||||||||||
| Real estate brokerage and property management income, net | 10,781 | 6,938 | 6,737 | 9,444 | 8,843 | ||||||||||||||
| Service charges on deposit accounts | 1,888 | 2,440 | 2,245 | 2,253 | 3,185 | ||||||||||||||
| Credit card merchant fees, net | 1,109 | 1,179 | 1,389 | 1,514 | 660 | ||||||||||||||
| BOLI | 1,584 | 3,105 | 3,865 | 2,117 | 1,635 | ||||||||||||||
| Other income | 3,763 | 5,227 | 4,591 | 3,981 | 4,617 | ||||||||||||||
| Net gain/(loss) on investment securities | 2,930 | 5,002 | — | (69 | ) | — | |||||||||||||
| Total noninterest income | 69,382 | 48,200 | 49,712 | 54,776 | 54,718 | ||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||
| Salaries and employee benefits | 56,926 | 55,867 | 56,013 | 55,784 | 54,263 | ||||||||||||||
| Occupancy expense | 7,227 | 7,502 | 7,516 | 7,953 | 7,662 | ||||||||||||||
| Furniture and equipment | 3,564 | 3,640 | 3,598 | 3,805 | 3,578 | ||||||||||||||
| Amortization - intangibles | 2,901 | 2,950 | 3,005 | 3,059 | 3,113 | ||||||||||||||
| Software expense | 3,492 | 3,492 | 2,976 | 3,208 | 2,788 | ||||||||||||||
| Data processing | 2,718 | 2,791 | 2,510 | 2,533 | 3,616 | ||||||||||||||
| Professional fees | 2,972 | 3,067 | 2,990 | 3,566 | 3,707 | ||||||||||||||
| Advertising and marketing | 1,986 | 3,584 | 2,839 | 3,429 | 3,182 | ||||||||||||||
| Other expenses | 9,239 | 13,995 | 10,889 | 13,950 | 14,647 | ||||||||||||||
| Total noninterest expense | 91,025 | 96,888 | 92,336 | 97,287 | 96,556 | ||||||||||||||
| Income before income tax expense and noncontrolling interest | 44,686 | 33,792 | 43,734 | 47,084 | 45,157 | ||||||||||||||
| Provision for income tax expense | 7,464 | 6,187 | 7,786 | 7,684 | 8,915 | ||||||||||||||
| Net income | 37,222 | 27,605 | 35,948 | 39,400 | 36,242 | ||||||||||||||
| Net income attributable to noncontrolling interest | (2,617 | ) | (1,221 | ) | (873 | ) | (1,741 | ) | (1,604 | ) | |||||||||
| Net income attributable to TowneBank | $ | 34,605 | $ | 26,384 | $ | 35,075 | $ | 37,659 | $ | 34,638 | |||||||||
| Per common share information | |||||||||||||||||||
| Basic earnings | $ | 0.48 | $ | 0.37 | $ | 0.49 | $ | 0.52 | $ | 0.48 | |||||||||
| Diluted earnings | $ | 0.48 | $ | 0.36 | $ | 0.49 | $ | 0.52 | $ | 0.48 | |||||||||
| Basic weighted average shares outstanding | 72,280,555 | 72,206,228 | 72,122,476 | 72,091,221 | 72,044,817 | ||||||||||||||
| Diluted weighted average shares outstanding | 72,317,988 | $ | 72,299,721 | 72,302,414 | 72,222,934 | 72,145,600 | |||||||||||||
| Cash dividends declared | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | |||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Banking Segment Financial Information (unaudited) | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| June 30, | March 31, | June 30, | 2020 over 2019 | |||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2020 | 2019 | Amount | Percent | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Net interest income | $ | 89,665 | $ | 88,442 | $ | 87,406 | $ | 177,071 | $ | 174,842 | $ | 2,229 | 1.27 | % | ||||||||||||
| Service charges on deposit accounts | 1,888 | 3,185 | 2,440 | 4,328 | 6,046 | (1,718 | ) | (28.42 | )% | |||||||||||||||||
| Credit card merchant fees | 1,109 | 660 | 1,179 | 2,287 | 1,843 | 444 | 24.09 | % | ||||||||||||||||||
| Other income | 3,888 | 5,273 | 7,061 | 10,950 | 9,200 | 1,750 | 19.02 | % | ||||||||||||||||||
| Subtotal | 6,885 | 9,118 | 10,680 | 17,565 | 17,089 | 476 | 2.79 | % | ||||||||||||||||||
| Net gain/(loss) on investment securities | 2,930 | — | 5,002 | 7,932 | (776 | ) | 8,708 | 1,122.16 | % | |||||||||||||||||
| Total noninterest income | 9,815 | 9,118 | 15,682 | 25,497 | 16,313 | 9,184 | 56.30 | % | ||||||||||||||||||
| Total revenue | 99,480 | 97,560 | 103,088 | 202,568 | 191,155 | 11,413 | 5.97 | % | ||||||||||||||||||
| Provision for credit losses | 26,059 | 2,824 | 7,041 | 33,100 | 4,262 | 28,838 | 676.63 | % | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | 35,209 | 32,353 | 33,225 | 68,434 | 63,440 | 4,994 | 7.87 | % | ||||||||||||||||||
| Occupancy expense | 4,812 | 5,007 | 4,916 | 9,728 | 10,251 | (523 | ) | (5.10 | )% | |||||||||||||||||
| Furniture and equipment | 2,715 | 2,517 | 2,660 | 5,375 | 4,884 | 491 | 10.05 | % | ||||||||||||||||||
| Amortization of intangibles | 1,114 | 1,315 | 1,164 | 2,278 | 2,681 | (403 | ) | (15.03 | )% | |||||||||||||||||
| Other expenses | 10,718 | 18,938 | 18,705 | 29,423 | 35,119 | (5,696 | ) | (16.22 | )% | |||||||||||||||||
| Total expenses | 54,568 | 60,130 | 60,670 | 115,238 | 116,375 | (1,137 | ) | (0.98 | )% | |||||||||||||||||
| Income before income tax, corporate allocation and noncontrolling interest | 18,853 | 34,606 | 35,377 | 54,230 | 70,518 | (16,288 | ) | (23.10 | )% | |||||||||||||||||
| Corporate allocation | 627 | 546 | 670 | 1,297 | 998 | 299 | 29.96 | % | ||||||||||||||||||
| Income before income tax provision and noncontrolling interest | 19,480 | 35,152 | 36,047 | 55,527 | 71,516 | (15,989 | ) | (22.36 | )% | |||||||||||||||||
| Provision for income tax expense | 2,167 | 6,650 | 6,663 | 8,830 | 13,842 | (5,012 | ) | (36.21 | )% | |||||||||||||||||
| Net income | 17,313 | 28,502 | 29,384 | 46,697 | 57,674 | (10,977 | ) | (19.03 | )% | |||||||||||||||||
| Noncontrolling interest | 5 | 1 | (1 | ) | 4 | 3 | 1 | 33.33 | % | |||||||||||||||||
| Net income attributable to TowneBank | $ | 17,318 | $ | 28,503 | $ | 29,383 | $ | 46,701 | $ | 57,677 | (10,976 | ) | (19.03 | )% | ||||||||||||
| Efficiency ratio | 56.52 | % | 61.63 | % | 61.85 | % | 59.21 | % | 60.63 | % | (1.42 | )% | (2.34 | )% | ||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Realty Segment Financial Information (unaudited) | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| June 30, | March 31, | June 30, | 2020 over 2019 | |||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2020 | 2019 | Amount | Percent | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Residential mortgage brokerage income, net | $ | 30,468 | $ | 18,898 | $ | 8,007 | $ | 38,475 | $ | 32,654 | $ | 5,821 | 17.83 | % | ||||||||||||
| Real estate brokerage income, net | 2,659 | 2,873 | 1,865 | 4,524 | 4,434 | 90 | 2.03 | % | ||||||||||||||||||
| Title insurance and settlement fees | 639 | 594 | 436 | 1,075 | 962 | 113 | 11.75 | % | ||||||||||||||||||
| Property management fees, net | 8,122 | 5,970 | 5,073 | 13,195 | 13,678 | (483 | ) | (3.53 | )% | |||||||||||||||||
| Income from unconsolidated subsidiary | 301 | 162 | 186 | 487 | 256 | 231 | 90.23 | % | ||||||||||||||||||
| Net interest and other income | 3,765 | 1,677 | 2,396 | 6,161 | 3,049 | 3,112 | 102.07 | % | ||||||||||||||||||
| Total revenue | 45,954 | 30,174 | 17,963 | 63,917 | 55,033 | 8,884 | 16.14 | % | ||||||||||||||||||
| Provision for credit losses | 886 | — | (25 | ) | 861 | — | 861 | n/m | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | 13,059 | 13,309 | 13,293 | 26,352 | 26,204 | 148 | 0.56 | % | ||||||||||||||||||
| Occupancy expense | 1,763 | 2,028 | 1,927 | 3,690 | 4,373 | (683 | ) | (15.62 | )% | |||||||||||||||||
| Furniture and equipment | 626 | 803 | 762 | 1,388 | 1,571 | (183 | ) | (11.65 | )% | |||||||||||||||||
| Amortization of intangible assets | 658 | 695 | 657 | 1,315 | 1,420 | (105 | ) | (7.39 | )% | |||||||||||||||||
| Other expenses | 8,270 | 7,234 | 6,867 | 15,137 | 13,475 | 1,662 | 12.33 | % | ||||||||||||||||||
| Total expenses | 24,376 | 24,069 | 23,506 | 47,882 | 47,043 | 839 | 1.78 | % | ||||||||||||||||||
| Income (loss) before income tax, corporate allocation and noncontrolling interest | 20,692 | 6,105 | (5,518 | ) | 15,174 | 7,990 | 7,184 | 89.91 | % | |||||||||||||||||
| Corporate allocation | (370 | ) | (328 | ) | (393 | ) | (763 | ) | (591 | ) | (172 | ) | 29.10 | % | ||||||||||||
| (Loss) income before income tax provision and noncontrolling interest | 20,322 | 5,777 | (5,911 | ) | 14,411 | 7,399 | 7,012 | 94.77 | % | |||||||||||||||||
| Provision for income tax (benefit) expense | 4,127 | 1,287 | (1,292 | ) | 2,835 | 1,838 | 997 | 54.24 | % | |||||||||||||||||
| Net (loss) income | 16,195 | 4,490 | (4,619 | ) | 11,576 | 5,561 | 6,015 | 108.16 | % | |||||||||||||||||
| Noncontrolling interest | (2,415 | ) | (1,248 | ) | (791 | ) | (3,206 | ) | (1,500 | ) | (1,706 | ) | 113.73 | % | ||||||||||||
| Net (loss) income attributable to TowneBank | $ | 13,780 | $ | 3,242 | $ | (5,410 | ) | $ | 8,370 | $ | 4,061 | 4,309 | 106.11 | % | ||||||||||||
| Efficiency ratio | 53.04 | % | 79.77 | % | 130.86 | % | 74.91 | % | 85.48 | % | (10.57 | )% | (12.37 | )% | ||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Insurance Segment Financial Information (unaudited) | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| June 30, | March 31, | June 30, | 2020 over 2019 | |||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2020 | 2019 | Amount | Percent | ||||||||||||||||||||
| Commission and fee income | ||||||||||||||||||||||||||
| Property and casualty | $ | 13,926 | $ | 13,067 | $ | 12,786 | $ | 26,712 | $ | 24,940 | $ | 1,772 | 7.11 | % | ||||||||||||
| Employee benefits | 3,791 | 3,833 | 3,918 | 7,709 | 7,339 | 370 | 5.04 | % | ||||||||||||||||||
| Travel insurance | 861 | 1,169 | 1,266 | 2,127 | 2,458 | (331 | ) | (13.47 | )% | |||||||||||||||||
| Specialized benefit services | 157 | 163 | 168 | 325 | 333 | (8 | ) | (2.40 | )% | |||||||||||||||||
| Total commissions and fees | 18,735 | 18,232 | 18,138 | 36,873 | 35,070 | 1,803 | 5.14 | % | ||||||||||||||||||
| Contingency and bonus revenue | 2,009 | 1,893 | 2,022 | 4,031 | 3,479 | 552 | 15.87 | % | ||||||||||||||||||
| Other income | 127 | 79 | 81 | 208 | 154 | 54 | 35.06 | % | ||||||||||||||||||
| Total revenue | 20,871 | 20,204 | 20,241 | 41,112 | 38,703 | 2,409 | 6.22 | % | ||||||||||||||||||
| Employee commission expense | 3,649 | 3,401 | 3,596 | 7,245 | 6,500 | 745 | 11.46 | % | ||||||||||||||||||
| Revenue, net of commission expense | 17,222 | 16,803 | 16,645 | 33,867 | 32,203 | 1,664 | 5.17 | % | ||||||||||||||||||
| Salaries and employee benefits | 8,658 | 8,601 | 9,349 | 18,007 | 17,479 | 528 | 3.02 | % | ||||||||||||||||||
| Occupancy expense | 652 | 627 | 659 | 1,311 | 1,289 | 22 | 1.71 | % | ||||||||||||||||||
| Furniture and equipment | 223 | 258 | 218 | 441 | 494 | (53 | ) | (10.73 | )% | |||||||||||||||||
| Amortization of intangible assets | 1,129 | 1,103 | 1,129 | 2,258 | 2,204 | 54 | 2.45 | % | ||||||||||||||||||
| Other expenses | 1,419 | 1,768 | 1,357 | 2,776 | 3,795 | (1,019 | ) | (26.85 | )% | |||||||||||||||||
| Total operating expenses | 12,081 | 12,357 | 12,712 | 24,793 | 25,261 | (468 | ) | (1.85 | )% | |||||||||||||||||
| Income before income tax, corporate allocation and noncontrolling interest | 5,141 | 4,446 | 3,933 | 9,074 | 6,942 | 2,132 | 30.71 | % | ||||||||||||||||||
| Corporate allocation | (257 | ) | (218 | ) | (277 | ) | (533 | ) | (407 | ) | (126 | ) | 30.96 | % | ||||||||||||
| Income before income tax provision and noncontrolling interest | 4,884 | 4,228 | 3,656 | 8,541 | 6,535 | 2,006 | 30.70 | % | ||||||||||||||||||
| Provision for income tax expense | 1,170 | 978 | 816 | 1,987 | 1,446 | 541 | 37.41 | % | ||||||||||||||||||
| Net income | 3,714 | 3,250 | 2,840 | 6,554 | 5,089 | 1,465 | 28.79 | % | ||||||||||||||||||
| Noncontrolling interest | (207 | ) | (357 | ) | (429 | ) | (636 | ) | (780 | ) | 144 | (18.46 | )% | |||||||||||||
| Net income attributable to TowneBank | $ | 3,507 | $ | 2,893 | $ | 2,411 | $ | 5,918 | $ | 4,309 | $ | 1,609 | 37.34 | % | ||||||||||||
| Provision for income taxes | 1,170 | 978 | 816 | 1,987 | 1,446 | 541 | 37.41 | % | ||||||||||||||||||
| Depreciation, amortization and interest expense | 1,291 | 1,309 | 1,300 | 2,591 | 2,982 | (391 | ) | (13.11 | )% | |||||||||||||||||
| EBITDA (non-GAAP) | $ | 5,968 | $ | 5,180 | $ | 4,527 | $ | 10,496 | $ | 8,737 | $ | 1,759 | 20.13 | % | ||||||||||||
| Efficiency ratio | 70.15 | % | 73.54 | % | 76.37 | % | 73.21 | % | 78.44 | % | (5.23 | )% | (6.67 | )% | ||||||||||||
| TOWNEBANK | |||||||||||||||||||
| Reconcilement of Non-GAAP Financial Measures | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||
| Return on average assets (GAAP) | 0.97 | % | 1.20 | % | 0.88 | % | 0.93 | % | 1.17 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 0.10 | % | 0.15 | % | 0.12 | % | 0.11 | % | 0.15 | % | |||||||||
| Return on average tangible assets (non-GAAP) | 1.07 | % | 1.35 | % | 1.00 | % | 1.04 | % | 1.32 | % | |||||||||
| Return on average equity (GAAP) | 8.18 | % | 8.83 | % | 6.37 | % | 7.28 | % | 8.54 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 4.14 | % | 5.07 | % | 3.54 | % | 3.85 | % | 5.03 | % | |||||||||
| Return on average tangible equity (non-GAAP) | 12.32 | % | 13.90 | % | 9.91 | % | 11.13 | % | 13.57 | % | |||||||||
| Return on average common equity (GAAP) | 8.24 | % | 8.89 | % | 6.42 | % | 7.34 | % | 8.60 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 4.20 | % | 5.16 | % | 3.59 | % | 3.91 | % | 5.13 | % | |||||||||
| Return on average tangible common equity (non-GAAP) | 12.44 | % | 14.05 | % | 10.01 | % | 11.25 | % | 13.73 | % | |||||||||
| Book value (GAAP) | $ | 23.50 | $ | 21.95 | $ | 22.77 | $ | 23.50 | $ | 21.95 | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | (6.82 | ) | (6.90 | ) | (6.86 | ) | (6.82 | ) | (6.90 | ) | |||||||||
| Tangible book value (non-GAAP) | $ | 16.68 | $ | 15.05 | $ | 15.91 | $ | 16.68 | $ | 15.05 | |||||||||
| Average assets (GAAP) | $ | 14,409,468 | $ | 11,532,278 | $ | 12,049,323 | $ | 13,229,396 | $ | 11,364,448 | |||||||||
| Less: average goodwill | 446,725 | 442,881 | 446,838 | 446,781 | 442,875 | ||||||||||||||
| Less: average intangible assets | 50,352 | 60,339 | 53,285 | 51,819 | 61,861 | ||||||||||||||
| Average tangible assets (non-GAAP) | $ | 13,912,391 | $ | 11,029,058 | $ | 11,549,200 | $ | 12,730,796 | $ | 10,859,712 | |||||||||
| Average equity (GAAP) | $ | 1,701,777 | $ | 1,573,855 | $ | 1,665,706 | $ | 1,683,742 | $ | 1,559,954 | |||||||||
| Less: average goodwill | 446,725 | 442,881 | 446,838 | 446,781 | 442,875 | ||||||||||||||
| Less: average intangible assets | 50,352 | 60,339 | 53,285 | 51,819 | 61,861 | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 1,204,700 | $ | 1,070,635 | $ | 1,165,583 | $ | 1,185,142 | $ | 1,055,218 | |||||||||
| Average common equity (GAAP) | $ | 1,689,603 | $ | 1,562,214 | $ | 1,653,676 | $ | 1,671,640 | 1,548,250 | ||||||||||
| Less: average goodwill | 446,725 | 442,881 | 446,838 | 446,781 | 442,875 | ||||||||||||||
| Less: average intangible assets | 50,352 | 60,339 | 53,285 | 51,819 | 61,861 | ||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 1,192,526 | $ | 1,058,994 | $ | 1,153,553 | $ | 1,173,040 | $ | 1,043,514 | |||||||||
| Net Income (GAAP) | $ | 34,605 | $ | 34,638 | 26,384 | 60,989 | 66,047 | ||||||||||||
| Amortization of Intangibles, net of tax | 2,292 | 2,460 | 2,331 | 4,622 | 4,981 | ||||||||||||||
| Tangible Net Income (non-GAAP) | $ | 36,897 | $ | 37,098 | $ | 28,715 | $ | 65,611 | $ | 71,028 | |||||||||
