|
| |
| | Sterling Bancorp |
| | 400 Rella Boulevard |
| | Montebello, NY 10901-4243 |
| | |
| News Release | T 845.369.8040 |
| F 845.369.8255 |
| |
| | http://www.sterlingbancorp.com |
|
| |
| FOR IMMEDIATE RELEASE | |
| April 30, 2014 | |
| | |
| STERLING BANCORP CONTACT: | |
| Luis Massiani, EVP & Chief Financial Officer | |
| 845.369.8040 | |
Sterling Bancorp Announces Results for the Second Fiscal Quarter and Six Months ended March 31, 2014
Strong quarter performance highlighted by core diluted earnings per share of $0.16, GAAP diluted earnings per share of $0.12, and annualized commercial loan growth of 17.7%.
Key Highlights for the Second Fiscal Quarter 2014
| |
| ▪ | First full fiscal quarter as the combined Sterling Bancorp (merger of legacy Provident New York Bancorp and legacy Sterling Bancorp). |
| |
| ▪ | Total revenue excluding securities gains was $66.4 million. |
| |
| ▪ | Tax equivalent net interest margin was 3.76%, compared to 3.58% in the linked quarter and 3.41% in the second quarter of fiscal 2013. |
| |
| ▪ | Total non-interest income was $12.4 million, which represented 18.6% of total revenue. |
| |
| ▪ | Core operating efficiency ratio was 62.0%. |
| |
| ▪ | Annualized commercial loan growth of 17.7% over prior quarter. |
| |
| ▪ | Annualized deposit growth (including municipal deposits) of 23.7% over prior quarter. |
| |
| ▪ | Core return on average tangible assets was 0.85%, compared to 0.66% in the linked quarter and 0.77% in the second quarter of fiscal 2013. |
| |
| ▪ | Core return on average tangible equity was 10.8%, compared to 8.6% in the linked quarter and 8.7% in the second quarter of fiscal 2013. |
MONTEBELLO, N.Y. – April 30, 2014 – Sterling Bancorp (NYSE: STL), the parent company of Sterling National Bank, today announced results for the quarter and six months ended March 31, 2014. Net income for the quarter was $10.3 million, or $0.12 per diluted share, compared to net income of $6.5 million, or $0.15 per diluted share for the same quarter last year and net loss of $(14.0) million, or $(0.20) per diluted share, which included a number of merger-related expenses and other charges, for the linked quarter ended December 31, 2013. For the six months ended March 31, 2014, net loss was $(3.7) million, or $(0.05) per diluted share, compared to net income of $13.5 million, or $0.31 per diluted share for the six months ended March 31, 2013.
Results for the quarter and six months ended March 31, 2014 were impacted by pre-tax merger-related expenses associated with the legacy Sterling Bancorp merger transaction and pre-tax charges for asset write-downs and the settlement of benefit plan obligations. In total, merger-related expenses and other charges were $4.0 million in the second fiscal quarter of 2014 and $39.0 million in the six months ended March 31, 2014. Excluding the impact of these items, net income for the second fiscal quarter of 2014 was $13.2 million, or $0.16 per diluted share and net income for the six months ended March 31, 2014 was $22.7 million, or $0.29 per diluted share.
See the reconciliation of the Company’s non-GAAP financial measures included in this press release beginning on page 10. Non-GAAP financial measures include references to the terms “core” or “excluding”.
President’s Comments
Jack Kopnisky, President and CEO, commented: “During the quarter we continued to successfully execute our strategy of building a high performance regional bank that delivers superior service to our small and middle market commercial clients and consumers. We have made significant progress in the integration of legacy Sterling Bancorp, as evidenced by our strong results in the quarter which included higher profitability, double-digit loan growth and a significant improvement in operating efficiency.
“Core earnings for the quarter were $13.2 million and core earnings per diluted share were $0.16. Our profitability ratios continued to improve; for the quarter, our core return on average tangible assets was 0.85% and core return on average tangible equity was 10.8%. This compares to 0.77% and 8.7%, respectively for the same quarter a year ago.
“We experienced strong loan growth across multiple asset classes. As of March 31, 2014, total loans including loans held for sale were $4.3 billion, which represented annualized growth of 11.4% over the prior quarter end. Focusing on our commercial portfolio, which includes commercial and industrial loans, commercial real estate loans and specialty lending businesses, commercial loan balances grew by $145.4 million to $3.4 billion, which represented annualized growth of 17.7% over the prior quarter end.
“Our funding and liquidity position remains strong and the increase in our deposit balances also highlights the success of the merger integration. As of March 31, 2014, our retail and commercial transaction, money market and savings accounts were $3.7 billion, which represented annual growth of 7.2% over balances at December 31, 2013. We have re-started our recruiting efforts and hired 11 new relationship bankers during the second quarter. We anticipate that our existing and new commercial relationship teams will continue to drive significant loan and deposit growth.
“We continue to focus on diversifying and improving our revenue mix. Non-interest income was $12.4 million for the quarter, which represented approximately 18.6% of total revenue. We continue to see significant opportunities to grow our specialty lending businesses, which we anticipate will allow us to grow fee income and increase the proportion of fee income to total revenue to approximately 20% - 25% over time.
“We have also begun to realize the anticipated cost savings from the merger. For the quarter, our core operating efficiency ratio was 62.0%, which compares to 65.4% in the linked quarter and 67.4% in the same quarter a year ago. We anticipate we will continue to improve operating efficiency as we realize the benefits of becoming a larger, more diversified company.
“Net charge-offs against the allowance for loan losses for the quarter ended March 31, 2014 were $3.4 million, compared to $1.3 million in the prior quarter. A significant portion of these charge-offs were associated with three acquisition, development and construction relationships, a portfolio we are in the process of liquidating. The allowance for loan losses to total loans, excluding loans acquired in the Gotham and legacy Sterling Bancorp transactions that were recorded at fair value at their acquisition dates and continue to carry no allowance, was 1.12%.
“Today we also announced plans to redeem all of the issued and outstanding 8.375% Cumulative Trust Preferred Securities of Sterling Bancorp Trust I on June 1, 2014, which will generate significant interest expense savings.
“Our capital position remains strong. At March 31, 2014, our tangible equity to tangible assets ratio was 7.69% and our Tier 1 leverage ratio at Sterling National Bank was 9.83%. We have ample capital and liquidity to support our growth and execute our strategy. Lastly, I am pleased to announce our Board of Directors has declared a dividend on our common stock of $0.07 per share payable on May 22, 2014 to our holders on the record date of May 12, 2014.”
Net Interest Income and Margin
Second quarter fiscal 2014 compared to the second quarter fiscal 2013
Net interest income was $54.0 million, up $26.2 million compared to the second quarter of fiscal 2013. This was mainly the result of higher average loans and investment securities balances and an increase in net interest margin due to the merger transaction with legacy Sterling Bancorp. The tax-equivalent yield on investments increased 45 basis points and yield on loans increased 12 basis points. Yield on loans included $2.6 million in accretion of the fair value discount associated with the loans acquired from Gotham and legacy Sterling Bancorp. The cost of total deposits was 19 basis points and the cost of borrowings was 3.01%. The net interest margin on a tax-equivalent basis was 3.76% compared to 3.41% for the same period a year ago.
Second quarter fiscal 2014 compared with linked quarter ended December 31, 2013
Net interest income increased $8.2 million compared to the linked quarter ended December 31, 2013. The increase in net interest income for the second quarter was due to higher average loans and investment securities balances and an increase in net interest margin due to the legacy Sterling Bancorp merger transaction. Average earning assets for the quarter were $6.0 billion, the yield on loans increased to 5.05% and tax-equivalent yield on interest earning assets was 4.25%. Tax-equivalent net interest margin increased to 3.76% from 3.58% in the linked quarter.
Non-interest Income
Second quarter fiscal 2014 compared with second quarter fiscal 2013
Excluding net gains and losses on sale of securities, non-interest income increased $7.7 million to $12.4 million during the second quarter of fiscal 2014. The increase was mainly due to an increase in fees associated with service charges on deposits, fees generated in the factoring and payroll finance businesses and gain on sale income in mortgage banking. The Company realized a net gain on sale of securities of $60 thousand for the second quarter of fiscal 2014 compared to net gain on sale of securities of $2.2 million in the year ago quarter.
Second quarter fiscal 2014 compared with linked quarter ended December 31, 2013
Excluding net gains and losses on sale of securities, non-interest income increased $2.6 million to $12.4 million during the second fiscal quarter of 2014. The increase was mainly due to the factors discussed above. The Company realized a net loss on sale of securities of $645 thousand in the linked quarter ended December 31, 2013.
Non-interest Expense
Second quarter fiscal 2014 compared with second quarter fiscal 2013
Non-interest expense increased $23.4 million relative to the second quarter of fiscal 2013 to $46.7 million, principally the result of increased compensation and benefits expense, occupancy and office operations expense, and other expenses due to the legacy Sterling Bancorp merger transaction. Other expenses for the quarter included merger-related expenses of $388 thousand, a charge related to the core banking systems conversion of $423 thousand, severance compensation of $255 thousand, a charge on the settlement of the legacy Provident employee stock ownership plan and a portion of the legacy Sterling Bancorp defined benefit pension plan obligations of $1.5 million, and the amortization of non-compete agreements of approximately $1.5 million. The charge related to the core systems conversion mainly represented consulting fees and personnel training costs incurred in connection with the integration of the legacy Provident Bank and legacy Sterling National Bank technology systems. The merger-related charges incurred in the second fiscal quarter of 2014 represented final expenses related to client communications, branding, relocation of personnel and professional fees.
Second quarter fiscal 2014 compared with the linked quarter ended December 31, 2013
Non-interest expense decreased $26.3 million compared to the linked quarter. The Company incurred merger-related expenses of $9.1 million and a charge for asset write-downs, retention and severance compensation of $22.2 million in the quarter ended December 31, 2013. The decrease in these expenses between the two periods was partially offset by higher expenses given legacy Sterling Bancorp’s operations were fully incorporated in the Company’s results in the second fiscal quarter of 2014.
Income Taxes
In the second quarter of fiscal 2014 the Company recorded income taxes at a rate of 30.8% compared to an effective tax benefit rate of 33.2% in the linked quarter and 25.2% for the same period in fiscal 2013. Income tax expense for the period was principally impacted by higher pre-tax income, a lower proportion of interest earned on municipal securities and income on bank owned life insurance, and an investment in low income housing tax credits. We have reviewed the changes to the New York State tax laws enacted March 31, 2014 and determined the impact to our financial statements will be immaterial.
Key Balance Sheet Highlights Year-to-Date at March 31, 2014
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| ▪ | Total assets were $6.9 billion. |
| |
| ▪ | Total loans including loans held for sale were $4.3 billion. |
| |
| ▪ | Commercial and industrial loans represented 43.1%, commercial real estate loans represented 38.0%, consumer and residential mortgage loans represented 16.8%, and acquisition, development and construction loans represented 2.1% of the total loan portfolio. |
| |
| ▪ | Commercial loan growth, which includes commercial and industrial loans, commercial real estate loans and specialty lending businesses was $145.4 million for the quarter ended March 31, 2014, and represented annualized growth of 17.7% over the prior quarter. |
| |
| ▪ | Securities, excluding FHLB and FRB Stock, were $1.8 billion and represented 25.4% of total assets. |
| |
| ▪ | Total deposits were $5.2 billion. |
| |
| ▪ | Transaction, money market and savings deposits (including municipal deposits) were $4.7 billion and represented 89.8% of total deposits. |
| |
| ▪ | The allowance for loan losses was $32.0 million and represented 1.12% of total loans excluding the impact of loans acquired in the Gotham transaction and the legacy Sterling Bancorp merger transactions that were recorded at fair value at the acquisition date and continue to carry no allowance for loan losses. |
| |
| ▪ | Tangible book value per share was $5.97. |
Credit Quality
Non-performing loans increased $16.8 million to $55.2 million at March 31, 2014 compared to $38.4 million at December 31, 2013. This increase was mainly due to three acquisition, development and construction relationships that were reclassified as non-performing loans during the quarter. Net charge-offs for the second quarter that were charged to the allowance for loan losses were $3.4 million compared to $1.3 million in the linked quarter. The allowance for loan losses at March 31, 2014 was $32.0 million, which represented 58.0% of non-performing loans and 0.75% of our total loan portfolio. The increase in the balance of the allowance for loan losses was mainly related to the higher balance of loans outstanding at March 31, 2014. The allowance for loan losses to total loans, excluding loans acquired in the Gotham and legacy Sterling Bancorp merger transactions that were recorded at fair value at the acquisition dates and continue to carry no allowance, was 1.12% at March 31, 2014. Please refer to the Company’s reconciliation of this non-GAAP measure on page 10.
Capital
The Company’s stockholders’ equity was $936.5 million at March 31, 2014, an increase of $453.6 million relative to September 30, 2013. The increase in stockholders’ equity was mainly the result of the legacy Sterling Bancorp merger transaction, which increased capital by $457.8 million. Other contributors to the change in capital included an increase in other comprehensive income of $1.0 million and items related to stock-based compensation of $4.3 million. These increases were partially offset by the net loss of ($3.7 million) and dividends of $5.9 million declared during the first six months of fiscal 2014.
Tangible book value per share decreased from $7.08 at September 30, 2013 to $5.97 at March 31, 2014. Total goodwill and other intangible assets were $437.7 million at March 31, 2014, an increase of $268.7 million over September 30, 2013. For the quarter ended March 31, 2014, basic and diluted weighted average common shares outstanding increased to 83.5 million and 83.8 million, compared to 43.7 million basic shares and 43.9 million diluted shares, respectively, for the quarter ended September 30, 2013. The increase in basic and diluted shares is mainly the result of the issuance of 39.1 million shares of common stock in October 2013 in connection with the legacy Sterling Bancorp merger transaction. Total shares outstanding at March 31, 2014 were approximately 83.5 million.
Consolidated tangible equity to tangible assets was 7.69% at March 31, 2014 and Sterling National Bank remained well capitalized with a Tier 1 leverage ratio of 9.83%.
Sterling Bancorp will host a teleconference and webcast on Thursday, May 1, 2014 at 10:30 AM EDT to discuss the Company’s results. Interested parties are invited to listen to the webcast and view accompanying slides on the Company’s website www.sterlingbancorp.com. Analysts are invited to listen by dialing (855) 877-0343, Conference ID #27833566. A replay of the teleconference can be accessed through the Company’s website.
About Sterling Bancorp
Headquartered in Montebello, N.Y., Sterling Bancorp is the holding company for Sterling National Bank, a growing full service commercial bank with $6.9 billion in assets that specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City metropolitan region through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Sterling Bancorp web site at www.sterlingbancorp.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may concern Sterling Bancorp’s current expectations about its future results, plans, operations and prospects and involve certain risks, including the following: difficulties and delays in integrating the combined businesses of Provident New York Bancorp and legacy Sterling Bancorp or fully realizing cost savings and other benefits; inflation; the effects of, and changes in, trade; changes in asset quality and credit risk; introduction, withdrawal, success and timing of business initiatives; capital management activities; customer disintermediation; and the success of Sterling Bancorp in managing those risks. Other factors that could cause Sterling Bancorp’s actual results to differ from those indicated in forward-looking statements are included in the “Risk Factors” section of Sterling Bancorp’s filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2014. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require information received by management between the date of this release and the filing of the 10-Q to be reflected in the results of the fiscal period, even though the new information was received by management subsequent to the date of this release.
Sterling Bancorp and Subsidiaries CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | |
| | | 3/31/2014 | | 9/30/2013 | | 3/31/2013 |
| Assets: | | | | | | |
| Cash and due from banks | | $ | 164,645 |
| | $ | 113,090 |
| | $ | 73,396 |
|
| Investment securities | | 1,760,575 |
| | 1,208,392 |
| | 1,129,213 |
|
| Loans held for sale | | 21,348 |
| | 1,011 |
| | 1,040 |
|
| Loans: | | | | | | |
| Residential mortgage | | 512,875 |
| | 400,009 |
| | 365,485 |
|
| Commercial real estate | | 1,614,002 |
| | 1,277,037 |
| | 1,149,463 |
|
| Commercial and industrial | | 1,827,374 |
| | 439,787 |
| | 370,246 |
|
| Acquisition, development and construction | | 90,905 |
| | 102,494 |
| | 118,115 |
|
| Consumer | | 199,198 |
| | 193,571 |
| | 201,246 |
|
| Total loans, gross | | 4,244,354 |
| | 2,412,898 |
| | 2,204,555 |
|
| Allowance for loan losses | | (32,015 | ) | | (28,877 | ) | | (27,544 | ) |
| Total loans, net | | 4,212,339 |
| | 2,384,021 |
| | 2,177,011 |
|
| Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | | 53,346 |
| | 24,312 |
| | 20,251 |
|
| Accrued interest receivable | | 18,154 |
| | 11,698 |
| | 11,819 |
|
| Premises and equipment, net | | 49,041 |
| | 36,520 |
| | 37,617 |
|
| Goodwill | | 387,286 |
| | 163,117 |
| | 163,117 |
|
| Other intangibles | | 50,441 |
| | 5,891 |
| | 6,538 |
|
| Bank owned life insurance | | 117,572 |
| | 60,914 |
| | 59,916 |
|
| Other real estate owned | | 9,275 |
| | 6,022 |
| | 5,486 |
|
| Other assets | | 80,397 |
| | 34,184 |
| | 25,036 |
|
| Total assets | | $ | 6,924,419 |
| | $ | 4,049,172 |
| | $ | 3,710,440 |
|
| Liabilities: | | | | | | |
| Deposits | | $ | 5,211,724 |
| | $ | 2,962,294 |
| | $ | 2,799,658 |
|
| FHLB borrowings | | 489,801 |
| | 442,602 |
| | 347,450 |
|
| Other borrowings | | 19,991 |
| | 20,351 |
| | 20,526 |
|
| Senior notes | | 98,215 |
| | 98,033 |
| | — |
|
| Subordinated debentures | | 26,509 |
| | — |
| | — |
|
| Mortgage escrow funds | | 8,711 |
| | 12,646 |
| | 17,582 |
|
| Other liabilities | | 133,002 |
| | 30,380 |
| | 30,513 |
|
| Total liabilities | | 5,987,953 |
| | 3,566,306 |
| | 3,215,729 |
|
| Stockholders’ equity | | 936,466 |
| | 482,866 |
| | 494,711 |
|
| Total liabilities and stockholders’ equity | | $ | 6,924,419 |
| | $ | 4,049,172 |
| | $ | 3,710,440 |
|
| | | | | | | |
| Shares of common stock outstanding at period end | | 83,544,307 |
| | 44,351,046 |
| | 44,353,276 |
|
| Book value per share | | $ | 11.21 |
| | $ | 10.89 |
| | $ | 11.15 |
|
| Tangible book value per share | | 5.97 |
| | 7.08 |
| | 7.33 |
|
Sterling Bancorp and Subsidiaries CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | | |
| | | For the Quarter Ended | | For the Six Months Ended |
| | | 3/31/2014 | | 12/31/2013 | | 3/31/2013 | | 3/31/2014 | | 3/31/2013 |
| Interest and dividend income: | | | | | | | | | | |
| Loans and loan fees | | $ | 50,312 |
| | $ | 43,288 |
| | $ | 26,378 |
| | $ | 93,600 |
| | $ | 53,449 |
|
| Securities taxable | | 7,573 |
| | 6,903 |
| | 4,288 |
| | 14,475 |
| | 8,572 |
|
| Securities non-taxable | | 2,674 |
| | 2,161 |
| | 1,490 |
| | 4,835 |
| | 2,947 |
|
| Other earning assets | | 766 |
| | 359 |
| | 264 |
| | 1,125 |
| | 597 |
|
| Total interest income | | 61,325 |
| | 52,711 |
| | 32,420 |
| | 114,035 |
| | 65,565 |
|
| Interest expense: | | | | | | | | | | |
| Deposits | | 2,394 |
| | 1,834 |
| | 1,624 |
| | 4,135 |
| | 3,721 |
|
| Borrowings | | 4,903 |
| | 5,001 |
| | 2,977 |
| | 9,997 |
| | 6,102 |
|
| Total interest expense | | 7,297 |
| | 6,835 |
| | 4,601 |
| | 14,132 |
| | 9,823 |
|
| Net interest income | | 54,028 |
| | 45,876 |
| | 27,819 |
| | 99,903 |
| | 55,742 |
|
| Provision for loan losses | | 4,800 |
| | 3,000 |
| | 2,600 |
| | 7,800 |
| | 5,550 |
|
| Net interest income after provision for loan losses | | 49,228 |
| | 42,876 |
| | 25,219 |
| | 92,103 |
| | 50,192 |
|
| Non-interest income: | | | | | | | | | | |
| Accounts receivable / factoring commissions and other fees | | 3,500 |
| | 2,226 |
| | — |
| | 5,720 |
| | — |
|
| Mortgage banking income | | 2,383 |
| | 1,616 |
| | 507 |
| | 3,999 |
| | 1,253 |
|
| Deposit fees and service charges | | 3,904 |
| | 3,942 |
| | 2,736 |
| | 7,846 |
| | 5,514 |
|
| Net gain (loss) on sale of securities | | 60 |
| | (645 | ) | | 2,229 |
| | (585 | ) | | 3,645 |
|
| Investment management fees | | 542 |
| | 540 |
| | 422 |
| | 1,083 |
| | 1,127 |
|
| Bank owned life insurance | | 729 |
| | 740 |
| | 491 |
| | 1,469 |
| | 1,000 |
|
| Other | | 1,297 |
| | 729 |
| | 467 |
| | 2,032 |
| | 1,972 |
|
| Total non-interest income | | 12,415 |
| | 9,148 |
| | 6,852 |
| | 21,564 |
| | 14,511 |
|
| Non-interest expense: | | | | | | | | | | |
| Compensation and benefits | | 25,263 |
| | 23,554 |
| | 11,805 |
| | 48,819 |
| | 24,104 |
|
| Stock-based compensation plans | | 927 |
| | 991 |
| | 679 |
| | 1,918 |
| | 1,179 |
|
| Occupancy and office operations | | 7,254 |
| | 6,333 |
| | 3,954 |
| | 13,587 |
| | 7,764 |
|
| Merger-related expenses | | 388 |
| | 9,068 |
| | 542 |
| | 9,456 |
| | 542 |
|
| Advertising and promotion | | 422 |
| | 309 |
| | 535 |
| | 731 |
| | 779 |
|
| Professional fees | | 1,500 |
| | 1,818 |
| | 912 |
| | 3,319 |
| | 2,127 |
|
| Data and check processing | | 663 |
| | 595 |
| | 823 |
| | 1,258 |
| | 1,472 |
|
| Amortization of intangible assets | | 2,511 |
| | 1,875 |
| | 388 |
| | 4,386 |
| | 649 |
|
| FDIC insurance and regulatory assessments | | 1,567 |
| | 1,164 |
| | 753 |
| | 2,731 |
| | 1,471 |
|
| Other real estate owned expense | | 61 |
| | 368 |
| | 915 |
| | 429 |
| | 1,200 |
|
| Other | | 6,167 |
| | 26,899 |
| | 2,033 |
| | 33,065 |
| | 4,598 |
|
| Total non-interest expense | | 46,723 |
| | 72,974 |
| | 23,339 |
| | 119,699 |
| | 45,885 |
|
| Income (loss) before income tax expense | | 14,920 |
| | (20,950 | ) | | 8,732 |
| | (6,032 | ) | | 18,818 |
|
| Income tax expense (benefit) | | 4,588 |
| | (6,948 | ) | | 2,203 |
| | (2,361 | ) | | 5,269 |
|
| Net income (loss) | | $ | 10,332 |
| | $ | (14,002 | ) | | $ | 6,529 |
| | $ | (3,671 | ) | | $ | 13,549 |
|
| Basic earnings per share | | $ | 0.12 |
| | $ | (0.20 | ) | | $ | 0.15 |
| | $ | (0.05 | ) | | $ | 0.31 |
|
| Diluted earnings per share | | 0.12 |
| | (0.20 | ) | | 0.15 |
| | (0.05 | ) | | 0.31 |
|
| Dividends declared per share | | 0.07 |
| | — |
| | 0.06 |
| | 0.07 |
| | 0.12 |
|
| Weighted average common shares: | | | | | | | | | | |
| Basic | | 83,497,765 |
| | 70,493,305 |
| | 43,743,640 |
| | 76,924,082 |
| | 43,704,163 |
|
| Diluted | | 83,794,107 |
| | 70,493,305 |
| | 43,848,486 |
| | 76,924,082 |
| | 43,790,915 |
|
Sterling Bancorp and Subsidiaries SELECTED FINANCIAL DATA
(unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | |
| | As of and for the Quarter Ended |
| End of Period | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 |
| Total assets | $ | 6,924,419 |
| | $ | 6,667,437 |
| | $ | 4,049,172 |
| | $ | 3,824,429 |
| | $ | 3,710,440 |
|
| Securities available for sale | 1,233,310 |
| | 1,153,313 |
| | 954,393 |
| | 889,747 |
| | 945,678 |
|
| Securities held to maturity | 527,265 |
| | 508,337 |
| | 253,999 |
| | 175,977 |
| | 183,535 |
|
Loans, gross 1 | 4,244,354 |
| | 4,127,141 |
| | 2,412,898 |
| | 2,336,534 |
| | 2,204,555 |
|
| Goodwill | 387,286 |
| | 387,517 |
| | 163,117 |
| | 163,117 |
| | 163,117 |
|
| Other intangibles | 50,441 |
| | 53,020 |
| | 5,891 |
| | 6,201 |
| | 6,538 |
|
| Deposits | 5,211,724 |
| | 4,920,564 |
| | 2,962,294 |
| | 2,739,214 |
| | 2,799,658 |
|
| Municipal deposits (included above) | 926,618 |
| | 673,656 |
| | 757,066 |
| | 465,566 |
| | 537,070 |
|
| Borrowings | 634,516 |
| | 696,270 |
| | 560,986 |
| | 552,805 |
| | 367,976 |
|
| Stockholders’ equity | 936,466 |
| | 925,109 |
| | 482,866 |
| | 480,165 |
| | 494,711 |
|
| Tangible equity | 498,739 |
| | 484,572 |
| | 313,858 |
| | 310,847 |
| | 325,056 |
|
| Average Balances | | | | | | | | | |
| Total assets | $ | 6,747,546 |
| | $ | 6,013,816 |
| | $ | 3,907,960 |
| | $ | 3,745,356 |
| | $ | 3,804,660 |
|
| Loans, gross: | | | | | | | | | |
| Residential mortgage | 520,887 |
| | 491,231 |
| | 379,640 |
| | 366,823 |
| | 360,840 |
|
| Commercial real estate | 1,580,454 |
| | 1,466,986 |
| | 1,247,055 |
| | 1,175,094 |
| | 1,138,333 |
|
| Commercial and industrial | 1,625,720 |
| | 1,268,492 |
| | 443,349 |
| | 398,622 |
| | 368,896 |
|
| Acquisition, development and construction | 93,531 |
| | 98,691 |
| | 104,856 |
| | 114,286 |
| | 122,937 |
|
| Consumer | 199,834 |
| | 200,637 |
| | 194,718 |
| | 199,861 |
| | 203,492 |
|
Loans, total 1 | 4,020,426 |
| | 3,526,037 |
| | 2,369,618 |
| | 2,254,686 |
| | 2,194,498 |
|
| Securities (taxable) | 1,386,538 |
| | 1,330,646 |
| | 963,949 |
| | 909,312 |
| | 967,889 |
|
| Securities (non-taxable) | 324,470 |
| | 250,520 |
| | 157,480 |
| | 184,325 |
| | 181,803 |
|
| Total earning assets | 5,985,054 |
| | 5,207,436 |
| | 3,529,321 |
| | 3,378,655 |
| | 3,403,209 |
|
| Deposits: | | | | | | | | | |
| Non-interest bearing demand | 1,640,125 |
| | 1,361,622 |
| | 669,067 |
| | 625,684 |
| | 641,194 |
|
| Interest bearing demand | 761,409 |
| | 619,746 |
| | 426,602 |
| | 461,390 |
| | 508,129 |
|
| Savings (including mortgage escrow funds) | 613,131 |
| | 622,530 |
| | 601,272 |
| | 581,106 |
| | 575,380 |
|
| Money market | 1,461,774 |
| | 1,182,858 |
| | 715,351 |
| | 777,857 |
| | 877,101 |
|
| Certificates of deposit | 582,580 |
| | 565,462 |
| | 335,616 |
| | 338,017 |
| | 355,917 |
|
| Total deposits and mortgage escrow | 5,059,019 |
| | 4,352,218 |
| | 2,747,908 |
| | 2,784,054 |
| | 2,957,721 |
|
| Borrowings | 660,486 |
| | 709,125 |
| | 653,147 |
| | 440,579 |
| | 345,717 |
|
| Equity | 934,304 |
| | 780,241 |
| | 478,491 |
| | 494,049 |
| | 492,725 |
|
| Tangible equity | 494,697 |
| | 432,703 |
| | 309,327 |
| | 324,540 |
| | 322,683 |
|
| Condensed Tax Equivalent Income Statement | | | | | |
| Interest and dividend income | $ | 61,325 |
| | $ | 52,711 |
| | $ | 33,903 |
| | $ | 32,593 |
| | $ | 32,420 |
|
Tax equivalent adjustment* | 1,440 |
| | 1,164 |
| | 666 |
| | 808 |
| | 802 |
|
| Interest expense | 7,297 |
| | 6,835 |
| | 5,795 |
| | 4,276 |
| | 4,601 |
|
| Net interest income (tax equivalent) | 55,468 |
| | 47,040 |
| | 28,774 |
| | 29,125 |
| | 28,621 |
|
| Provision for loan losses | 4,800 |
| | 3,000 |
| | 2,700 |
| | 3,900 |
| | 2,600 |
|
| Net interest income after provision for loan losses | 50,668 |
| | 44,040 |
| | 26,074 |
| | 25,225 |
| | 26,021 |
|
| Non-interest income | 12,415 |
| | 9,148 |
| | 6,600 |
| | 6,581 |
| | 6,852 |
|
| Non-interest expense | 46,723 |
| | 72,974 |
| | 23,367 |
| | 21,789 |
| | 23,339 |
|
| Income (loss) before income tax expense | 16,360 |
| | (19,786 | ) | | 9,307 |
| | 10,017 |
| | 9,534 |
|
Income tax expense (benefit) (tax equivalent)* | 6,028 |
| | (5,784 | ) | | 3,978 |
| | 3,641 |
| | 3,005 |
|
| Net income (loss) | $ | 10,332 |
| | $ | (14,002 | ) | | $ | 5,329 |
| | $ | 6,376 |
| | $ | 6,529 |
|
1 Does not reflect allowance for loan losses of $32,015, $30,612, $28,877, $28,374 and $27,544. |
*Tax exempt income assumed at a statutory 35% federal tax rate. |
Sterling Bancorp and Subsidiaries SELECTED FINANCIAL RATIOS
(unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarter Ended |
| Per Share Data | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 |
| Basic earnings per share | $ | 0.12 |
| | $ | (0.20 | ) | | $ | 0.12 |
| | $ | 0.15 |
| | $ | 0.15 |
|
| Diluted earnings per share | 0.12 |
| | (0.20 | ) | | 0.12 |
| | 0.15 |
| | 0.15 |
|
| Dividends declared per share | 0.07 |
| | — |
| | 0.12 |
| | 0.06 |
| | 0.06 |
|
| Tangible book value per share | 5.97 |
| | 5.77 |
| | 7.08 |
| | 7.01 |
| | 7.33 |
|
| Shares of common stock outstanding | 83,544,307 |
| | 83,955,647 |
| | 44,351,046 |
| | 44,353,276 |
| | 44,353,276 |
|
| Basic weighted average common shares outstanding | 83,497,765 |
| | 70,493,305 |
| | 43,742,903 |
| | 43,801,867 |
| | 43,743,640 |
|
| Diluted weighted average common shares outstanding | 83,794,107 |
| | 70,493,305 |
| | 43,859,834 |
| | 43,906,158 |
| | 43,848,486 |
|
| Performance Ratios (annualized) | | | | | | | | | |
| Return on average assets | 0.62 | % | | (0.92 | )% | | 0.54 | % | | 0.68 | % | | 0.70 | % |
| Return on average equity | 4.48 | % | | (7.12 | )% | | 4.42 | % | | 5.18 | % | | 5.37 | % |
Return on average tangible equity 1 | 8.47 | % | | (12.84 | )% | | 6.83 | % | | 7.88 | % | | 8.21 | % |
Core operating efficiency 1 | 62.0 | % | | 65.4 | % | | 64.7 | % | | 59.1 | % | | 67.4 | % |
| Analysis of Net Interest Income | | | | | | | | | |
| Yield on loans | 5.05 | % | | 4.88 | % | | 4.70 | % | | 4.80 | % | | 4.93 | % |
Yield on investment securities - tax equivalent2 | 2.77 | % | | 2.57 | % | | 2.35 | % | | 2.38 | % | | 2.32 | % |
Yield on earning assets - tax equivalent2 | 4.25 | % | | 4.10 | % | | 3.89 | % | | 3.97 | % | | 3.96 | % |
| Cost of deposits | 0.19 | % | | 0.17 | % | | 0.15 | % | | 0.17 | % | | 0.22 | % |
| Cost of borrowings | 3.01 | % | | 2.80 | % | | 2.88 | % | | 2.84 | % | | 3.49 | % |
| Cost of interest bearing liabilities | 0.73 | % | | 0.73 | % | | 0.84 | % | | 0.66 | % | | 0.70 | % |
Net interest rate spread - tax equivalent basis2 | 3.52 | % | | 3.37 | % | | 3.05 | % | | 3.31 | % | | 3.26 | % |
Net interest margin - tax equivalent basis2 | 3.76 | % | | 3.58 | % | | 3.23 | % | | 3.46 | % | | 3.41 | % |
| Capital | | | | | | | | | |
| Tier 1 leverage ratio - Bank only | 9.83 | % | | 10.58 | % | | 9.33 | % | | 8.49 | % | | 8.62 | % |
| Tier 1 risk-based capital - Bank only | $ | 622,878 |
| | $ | 593,462 |
| | $ | 363,274 |
| | $ | 311,507 |
| | $ | 304,696 |
|
| Total risk-based capital - Bank only | 655,288 |
| | 624,469 |
| | 392,376 |
| | 340,077 |
| | 332,447 |
|
Tangible equity as a % of tangible assets - consolidated 1 | 7.69 | % | | 7.78 | % | | 8.09 | % | | 8.50 | % | | 9.18 | % |
| Asset Quality | | | | | | | | | |
| Non-performing loans (NPLs) non-accrual | $ | 54,877 |
| | $ | 35,597 |
| | $ | 22,807 |
| | $ | 27,244 |
| | $ | 27,019 |
|
| Non-performing loans (NPLs) still accruing | 280 |
| | 2,845 |
| | 4,099 |
| | 4,216 |
| | 4,257 |
|
| Other real estate owned | 9,275 |
| | 11,751 |
| | 6,022 |
| | 4,376 |
| | 5,486 |
|
| Non-performing assets (NPAs) | 64,432 |
| | 50,193 |
| | 32,928 |
| | 35,836 |
| | 36,762 |
|
| Net charge-offs | 3,397 |
| | 1,265 |
| | 2,197 |
| | 3,070 |
| | 3,170 |
|
| Net charge-offs as a % of average loans (annualized) | 0.34 | % | | 0.14 | % | | 0.37 | % | | 0.54 | % | | 0.58 | % |
| NPLs as a % of total loans | 1.30 | % | | 0.93 | % | | 1.12 | % | | 1.35 | % | | 1.42 | % |
| NPAs as a % of total assets | 0.93 | % | | 0.75 | % | | 0.81 | % | | 0.94 | % | | 0.99 | % |
| Allowance for loan losses as a % of NPLs | 58.0 | % | | 79.6 | % | | 107.3 | % | | 90.2 | % | | 88.1 | % |
| Allowance for loan losses as a % of total loans | 0.75 | % | | 0.74 | % | | 1.20 | % | | 1.21 | % | | 1.25 | % |
Allowance for loan losses as a % of total loans, excluding Gotham and legacy Sterling loans1 | 1.12 | % | | 1.24 | % | | 1.27 | % | | 1.30 | % | | 1.36 | % |
| Special mention loans | $ | 39,964 |
| | $ | 38,834 |
| | $ | 13,530 |
| | $ | 24,327 |
| | $ | 41,778 |
|
| Substandard / doubtful loans | 82,673 |
| | 77,337 |
| | 61,095 |
| | 62,165 |
| | 70,688 |
|
1 See reconciliation of non-GAAP measure on following page. | | | | | | | | |
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35% for all periods presented. |
Sterling Bancorp and Subsidiaries NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | | |
| | As of and for the Quarter Ended |
| | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 |
| The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. |
| The following table shows the reconciliation of stockholders’ equity to tangible equity and the tangible equity ratio: |
| Total assets | $ | 6,924,419 |
| | $ | 6,667,437 |
| | $ | 4,049,172 |
| | $ | 3,824,429 |
| | $ | 3,710,440 |
|
| Goodwill and other intangibles | (437,727 | ) | | (440,537 | ) | | (169,008 | ) | | (169,318 | ) | | (169,655 | ) |
| Tangible assets | 6,486,692 |
| | 6,226,900 |
| | 3,880,164 |
| | 3,655,111 |
| | 3,540,785 |
|
| Stockholders’ equity | 936,466 |
| | 925,109 |
| | 482,866 |
| | 480,165 |
| | 494,711 |
|
| Goodwill and other intangibles | (437,727 | ) | | (440,537 | ) | | (169,008 | ) | | (169,318 | ) | | (169,655 | ) |
| Tangible stockholders’ equity | 498,739 |
| | 484,572 |
| | 313,858 |
| | 310,847 |
| | 325,056 |
|
| Shares of common stock outstanding at period end | 83,544,307 |
| | 83,955,647 |
| | 44,351,046 |
| | 44,353,276 |
| | 44,353,276 |
|
| Tangible equity as a % of tangible assets | 7.69 | % | | 7.78 | % | | 8.09 | % | | 8.50 | % | | 9.18 | % |
| Tangible book value per share | $ | 5.97 |
| | $ | 5.77 |
| | $ | 7.08 |
| | $ | 7.01 |
| | $ | 7.33 |
|
| The Company believes that tangible equity is useful as a tool to help assess a company’s capital position. |
| |
| The following table shows the reconciliation of return on average tangible equity and core return on average tangible equity: |
| Average stockholders’ equity | $ | 934,304 |
| | $ | 780,241 |
| | $ | 478,491 |
| | $ | 494,049 |
| | $ | 492,725 |
|
| Average goodwill and other intangibles | (439,613 | ) | | (347,538 | ) | | (169,164 | ) | | (169,509 | ) | | (170,042 | ) |
| Average tangible stockholders’ equity | 494,691 |
| | 432,703 |
| | 309,327 |
| | 324,540 |
| | 322,683 |
|
| Net income (loss) | 10,332 |
| | (14,002 | ) | | 5,329 |
| | 6,376 |
| | 6,529 |
|
| Net income (loss), if annualized | 41,902 |
| | (55,551 | ) | | 21,142 |
| | 25,574 |
| | 26,479 |
|
| Return on average tangible equity | 8.47 | % | | (12.84 | )% | | 6.83 | % | | 7.88 | % | | 8.21 | % |
| Core net income (see reconciliation on page 11) | $ | 13,203 |
| | $ | 9,374 |
| | $ | 6,117 |
| | $ | 7,426 |
| | $ | 6,934 |
|
| Annualized core net income | 53,546 |
| | 37,190 |
| | 24,269 |
| | 29,786 |
| | 28,121 |
|
| Core return on average tangible equity | 10.82 | % | | 8.59 | % | | 7.85 | % | | 9.18 | % | | 8.71 | % |
| The Company believes that the return on average tangible stockholders’ equity is useful as a tool to help assess a company’s use of tangible equity. |
| |
| The following table shows the reconciliation of the allowance for loan losses to total loans and to total loans excluding Gotham and legacy Sterling Bancorp loans: |
| Total loans | $ | 4,244,354 |
| | $ | 4,127,141 |
| | $ | 2,412,898 |
| | $ | 2,336,534 |
| | $ | 2,204,555 |
|
| Gotham loans | (101,273 | ) | | (117,046 | ) | | (133,493 | ) | | (152,825 | ) | | (176,383 | ) |
| Legacy Sterling loans | (1,277,335 | ) | | (1,539,962 | ) | | — |
| | — |
| | — |
|
| Total loans, excluding Gotham and legacy Sterling loans | 2,865,746 |
| | 2,470,133 |
| | 2,279,405 |
| | 2,183,709 |
| | 2,028,172 |
|
| Allowance for loan losses | 32,015 |
| | 30,612 |
| | 28,877 |
| | 28,374 |
| | 27,544 |
|
| Allowance for loan losses to total loans | 0.75 | % | | 0.74 | % | | 1.20 | % | | 1.21 | % | | 1.25 | % |
| Allowance for loan losses to total loans, excluding Gotham and legacy Sterling loans | 1.12 | % | | 1.24 | % | | 1.27 | % | | 1.30 | % | | 1.36 | % |
| As required by GAAP, the Company recorded at fair value the loans acquired in the Gotham and legacy Sterling Bancorp transactions. These loans carry no allowance for loan losses for the periods reflected above. |
Sterling Bancorp and Subsidiaries NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | | |
| | As of and for the Quarter Ended |
| | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 |
| The following table shows the reconciliation of the core operating efficiency ratio: |
| Net interest income | $ | 54,028 |
| | $ | 45,876 |
| | $ | 28,108 |
| | $ | 28,317 |
| | $ | 27,819 |
|
| Non-interest income | 12,415 |
| | 9,148 |
| | 6,600 |
| | 6,581 |
| | 6,852 |
|
| Total net revenues | 66,443 |
| | 55,024 |
| | 34,708 |
| | 34,898 |
| | 34,671 |
|
| Tax equivalent adjustment on securities interest income | 1,440 |
| | 1,164 |
| | 666 |
| | 808 |
| | 802 |
|
| Net (gain) loss on sale of securities | (60 | ) | | 645 |
| | (1,801 | ) | | (1,945 | ) | | (2,229 | ) |
| Other than temporary loss on securities | — |
| | — |
| | — |
| | — |
| | 7 |
|
| Other (other gains and fair value loss on interest rate caps) | — |
| | (93 | ) | | 81 |
| | — |
| | — |
|
| Core total revenues | 67,823 |
| | 56,740 |
| | 33,654 |
| | 33,761 |
| | 33,251 |
|
| Non-interest expense | 46,723 |
| | 72,974 |
| | 23,367 |
| | 21,789 |
| | 23,339 |
|
| Merger-related expenses | (388 | ) | | (9,068 | ) | | (714 | ) | | (1,516 | ) | | (542 | ) |
| Charge for asset write-downs, retention and severance compensation | (255 | ) | | (22,167 | ) | | (564 | ) | | — |
| | — |
|
| Charge on pension plan settlement | (1,486 | ) | | (2,743 | ) | | — |
| | — |
| | — |
|
| Amortization of intangible assets | (2,511 | ) | | (1,875 | ) | | (310 | ) | | (337 | ) | | (388 | ) |
| Core non-interest expense | 42,083 |
| | 37,121 |
| | 21,779 |
| | 19,936 |
| | 22,409 |
|
| Core efficiency ratio | 62.0 | % | | 65.4 | % | | 64.7 | % | | 59.1 | % | | 67.4 | % |
| The Company believes the core operating efficiency ratio is a useful tool to help assess a company’s core operating performance. |
| | | |
|
| | | | | | |
| The following table shows the reconciliation of net income (loss) and earnings (loss) per share excluding merger-related expenses, a charge for asset write-downs, core conversion, retention and severance compensation, a charge on settlement of benefit pension plans and the amortization of non-compete agreements: |
| Income (loss) before income tax expense | $ | 14,920 |
| | $ | (20,950 | ) | | $ | 8,641 |
| | $ | 9,209 |
| | $ | 8,732 |
|
| Income tax expense (benefit) | 4,588 |
| | (6,948 | ) | | 3,312 |
| | 2,833 |
| | 2,203 |
|
| Net income (loss) | 10,332 |
| | (14,002 | ) | | 5,329 |
| | 6,376 |
| | 6,529 |
|
| | | | | | | | | | |
| Merger-related expenses | 388 |
| | 9,068 |
| | 714 |
| | 1,516 |
| | 542 |
|
| Charge for asset write-downs, core conversion, retention and severance compensation | 678 |
| | 22,167 |
| | 564 |
| | — |
| | — |
|
| Charge on benefit plans settlement | 1,486 |
| | 2,743 |
| | — |
| | — |
| | — |
|
| Amortization of non-compete agreements | 1,497 |
| | 998 |
| | — |
| | — |
| | — |
|
| Total charges | 4,049 |
| | 34,976 |
| | 1,278 |
| | 1,516 |
| | 542 |
|
| Income tax (benefit) | (1,178 | ) | | (11,600 | ) | | (490 | ) | | (466 | ) | | (137 | ) |
| Total charges net of tax benefit | 2,871 |
| | 23,376 |
| | 788 |
| | 1,050 |
| | 405 |
|
| Net income excluding total charges | $ | 13,203 |
| | $ | 9,374 |
| | $ | 6,117 |
| | $ | 7,426 |
| | $ | 6,934 |
|
| | | | | | | | | | |
Weighted average diluted shares1 | 83,794,107 |
| | 70,707,292 |
| | 43,859,834 |
| | 43,906,158 |
| | 43,848,486 |
|
| Diluted EPS as reported | $ | 0.12 |
| | $ | (0.20 | ) | | $ | 0.12 |
| | $ | 0.15 |
| | $ | 0.15 |
|
| Diluted EPS excluding total charges | 0.16 |
| | 0.13 |
| | 0.14 |
| | 0.17 |
| | 0.16 |
|
| The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess a company’s profitability. |
1 For the first fiscal quarter of 2014 represents diluted share calculation to compute diluted EPS assuming net income. |
| | | |
| | | | | | |
Sterling Bancorp and Subsidiaries NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | | |
| | | As of and for the Quarter Ended |
| | | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 |
| The following table shows the reconciliation of return on tangible assets and core return on tangible assets: |
| Average assets | | $ | 6,747,546 |
| | $ | 6,013,816 |
| | $ | 3,907,960 |
| | $ | 3,745,356 |
| | $ | 3,804,660 |
|
| Average goodwill and other intangibles | | (439,613 | ) | | (347,538 | ) | | (169,164 | ) | | (169,509 | ) | | (170,042 | ) |
| Average tangible assets | | 6,307,933 |
| | 5,666,278 |
| | 3,738,796 |
| | 3,575,847 |
| | 3,634,618 |
|
| Net income (loss) | | 10,332 |
| | (14,002 | ) | | 5,329 |
| | 6,376 |
| | 6,529 |
|
| Net income (loss), if annualized | | 41,902 |
| | (55,551 | ) | | 21,142 |
| | 25,574 |
| | 26,479 |
|
| Return on average tangible assets | | 0.66 | % | | (0.98 | )% | | 0.57 | % | | 0.72 | % | | 0.73 | % |
| Core net income (see reconciliation on page 11) | | $ | 13,203 |
| | $ | 9,374 |
| | $ | 6,117 |
| | $ | 7,426 |
| | $ | 6,934 |
|
| Annualized core net income | | 53,546 |
| | 37,190 |
| | 24,269 |
| | 29,786 |
| | 28,121 |
|
| Core return on average tangible assets | | 0.85 | % | | 0.66 | % | | 0.65 | % | | 0.83 | % | | 0.77 | % |
| The company believes that the core return on average tangible assets is a useful too to help assess a company’s profitability. |
| |
| The following table shows the reconciliation of net (loss) income and core net income for the six months ended March 31: |
| | | | | | | | | For the six months ended |
| | | | | | | | | 3/31/2014 | | 3/31/2013 |
| (Loss) income before income tax expense | | | | | | | | $ | (6,032 | ) | | $ | 18,818 |
|
| Income tax (benefit) expense | | | | | | | | (2,361 | ) | | 5,269 |
|
| Net (loss) income | | | | | | | | (3,671 | ) | | 13,549 |
|
| | | | | | | | | | | |
| Merger-related expenses | | | | | | | | 9,456 |
| | 542 |
|
| Charge for asset write-downs, core conversion, retention and severance | | | | | | | | 22,845 |
| | — |
|
| Charge on pension plans settlement | | | | | | | | 4,229 |
| | — |
|
| Amortization of non-compete agreements | | | | | | | | 2,495 |
| | — |
|
| Total charges | | | | | | | | 39,025 |
| | 542 |
|
| Income tax (benefit) | | | | | | | | (12,683 | ) | | (152 | ) |
| Total charges net of tax benefit | | | | | | | | 26,342 |
| | 390 |
|
| Net income excluding total charges | | | | | | | | $ | 22,671 |
| | $ | 13,939 |
|
| | | | | | | | | | | |
| Weighted average diluted shares | | | | | | | | 76,924,082 |
| | 43,790,915 |
|
| Diluted EPS as reported | | | | | | | | $ | (0.05 | ) | | $ | 0.31 |
|
| Diluted EPS excluding total charges | | | | | | | | 0.29 |
| | 0.32 |
|
| The Company believes the presentation of its net income excluding total charges provides a useful tool to help assess a company’s profitability. |
| | | | | | | | | | | |
