EXHIBIT 99.1
Encore Bancshares Reports Fourth Quarter 2011 Net Earnings of $2.1 Million
HOUSTON, Jan. 27, 2012 (GLOBE NEWSWIRE) -- Encore Bancshares, Inc. (Nasdaq:EBTX) today reported fourth quarter 2011 net earnings of $2.1 million, or $0.17 per diluted common share and full-year net earnings of $7.2 million or $0.11 per diluted common share after deducting preferred dividends for each period.
Fourth Quarter Highlights
Improved earnings metrics
- Net interest margin increased 15 basis points over the third quarter of 2011 and 46 basis points over the fourth quarter of 2010
- Noninterest expense decreased $0.9 million or 6.3% over the prior quarter
- Total revenue of $18.9 million increased 3.5% over the prior quarter and 2.9% over the fourth quarter of 2010, excluding gain on sale of branches
Grew loan and deposits
- Commercial loans grew 11.9% over the prior quarter and 34.8% over the fourth quarter of 2010
- Noninterest-bearing demand deposits grew 18.8% from September 30, 2011 and 52.4% over the prior year end
- Noninterest-bearing demand deposits increased to 30.4% of total deposits, up from 26.9% in the prior quarter
Continued improvement in credit quality
- Net charge-offs were $1.9 million, a decrease of $3.0 million compared with the fourth quarter of 2010
- Nonperforming assets decreased $10.3 million or 44.5% from the third quarter of 2011
- Allowance for loan losses was $18.0 million or 1.76% of loans (excluding loans held for sale) at December 31, 2011, with a coverage ratio of 166.5% of nonaccrual loans
Maintained solid capital ratios
- Estimated tier 1 capital ratio of 13.20%
- Tangible common equity ratio of 6.76%
"We are pleased to report that loans grew 10% this year," said James S. D'Agostino, Jr., Chairman and Chief Executive Officer of Encore Bancshares, Inc. "Our earnings are a result of the successful implementation of our strategy to grow loans and manage expenses. We are pleased with our growth in loans, increased revenue, and solid non-interest income from wealth management and insurance. Being a Houston-based company allows us to operate within one of the strongest regional economies in the U.S. Our strong capital position and a positive outlook for the local economy, position us for significant growth potential in our market area."
Earnings
For the three months ended December 31, 2011, our net earnings were $2.1 million, compared with a net loss of $0.9 million for the same period of 2010. Earnings per diluted common share for the fourth quarter of 2011 were $0.17, compared with a loss per diluted common share of $0.13 for the same period of 2010, after deducting preferred dividends for each period.
For the year ended December 31, 2011, our net earnings were $7.2 million, compared with a net loss of $24.2 million for 2010. Earnings per diluted common share for 2011 were $0.11, compared with a loss per diluted common share of $2.37 for 2010, after deducting preferred dividends for each period. In the third quarter of 2011, we incurred a one-time non-cash charge to common equity of $4.1 million upon redemption of the CPP preferred stock to account for the difference between the amount at which the preferred stock sale had been initially recorded and its redemption price. Earnings for both periods of 2011 improved primarily due to lower credit costs and reduced expenses related to the sale of our Florida operations, which was completed December 31, 2010.
Net Interest Income
Net interest income on a tax equivalent basis (TE) for the fourth quarter of 2011 was $11.8 million, an increase of $0.6 million, or 5.0%, compared with the same period of 2010. The net interest margin (TE) expanded 46 basis points to 3.35% during the same comparison period. The increase in margin was due primarily to an improved balance sheet mix, as temporary investments and higher costing deposits decreased after the sale of our Florida operations. For the fourth quarter of 2011, net interest income (TE) increased $0.4 million, or 3.5%, and the net interest margin increased by 15 basis points compared to the third quarter of 2011, resulting mainly from a decrease in temporary investments and a decrease in higher costing interest-bearing deposits.
Noninterest Income
Noninterest income was $7.2 million for the fourth quarter of 2011, down $2.6 million compared with the same period of 2010. In the fourth quarter of 2010, we recorded a $2.6 million gain on the sale of our Florida branches. Excluding this gain, noninterest income was the same as the prior year period. Noninterest income increased $0.2 million for the fourth quarter of 2011 compared to the prior quarter due to an increase in trust and investment management fees and higher noninterest income which were offset by a decrease in insurance fees and commissions.
Noninterest Expense
Noninterest expense was $13.9 million for the fourth quarter of 2011, a decrease of $6.3 million, compared with the same period of 2010. This decrease was due primarily to a combination of lower FDIC assessments and the sale of our Florida operations in 2010, which resulted in a significant reduction in credit related costs, including other real estate owned expenses and write downs of assets held for sale, and other operating expenses during 2011. Noninterest expense decreased $0.9 million over the prior quarter due mainly to lower mark to market adjustments for other real estate owned and the settlement of a legal claim in the third quarter of 2011. During the fourth quarter of 2011, we recorded $0.3 million of losses on the sale of certain Florida-based loans.
Loans
Period end loans, including loans held for sale, were $1.0 billion at December 31, 2011, an increase of $93.9 million, or 10.1%, compared with December 31, 2010. Commercial and commercial real estate loans have increased $67.5 million or 45.9% and $44.4 million or 26.7%, respectively for this time period due to our continued efforts to grow the Houston based commercial loan portfolio.
Deposits
Period end deposits were $1.1 billion at December 31, 2011, an increase of $49.8 million, or 4.7%, compared with December 31, 2010. Period-end noninterest-bearing deposits were $335 million, an increase of $115 million, or 52.4%, compared with December 31, 2010 and represented 30.4% of total deposits.
Credit Quality and Capital Ratios
The provision for loan losses was $1.9 million for the fourth quarter of 2011, compared with $1.3 million for the third quarter of 2011 and $2.6 million for the same period of 2010. The increase in the provision for loan losses during the fourth quarter of 2011 was due to an increase in total loans. Net charge-offs for the fourth quarter were $1.9 million, or 0.77% of average total loans on an annualized basis, compared with $2.4 million or 0.97% of average total loans for the third quarter of 2011 and $4.9 million, or 1.95% of average total loans, for the fourth quarter of 2010. The allowance for loan losses was $18.0 million, or 1.76% of loans, excluding loans held for sale, at December 31, 2011, compared with $18.6 million, or 2.02% of loans, excluding loans held for sale, at December 31, 2010.
At December 31, 2011, nonperforming assets were $12.9 million compared with $23.2 million at September 30, 2011 and $35.8 million at December 31, 2010. Of the nonperforming assets at December 31, 2011, $5.0 million were in Florida. Nonperforming loans were $10.8 million at December 31, 2011, compared with $18.1 million at September 30, 2011, a decrease of $7.3 million. Other real estate owned was $2.1 million at December 31, 2011, compared with $5.1 million at September 30, 2011, a decrease of $3.0 million, or 59.3%.
As of December 31, 2011, our estimated Tier 1 risk-based, total risk-based and leverage capital ratios were 13.20%, 14.46%, and 9.74%, respectively. In addition, Encore Bank was considered "well capitalized" pursuant to regulatory capital definitions. Book value per common share and tangible book value per common share were $12.05 and $8.59 at December 31, 2011.
Conference Call
Encore will host a conference call for investors and analysts that will be broadcast live via the Internet on Friday, January 27, 2012, at 10:30 a.m. Eastern Time. Interested parties may participate by calling 877-303-6295 at least ten minutes prior to the start time.
To listen to this conference call live via the Internet, please visit the Investor Relations section of the Company's web site at http://www.encorebank.com at least fifteen minutes prior to the call to register, download and install any necessary audio software. An audio archive of the call will also be available on the web site on or before Monday, January 30, 2012.
About Encore Bancshares, Inc.
Encore Bancshares, Inc. is a financial holding company headquartered in Houston, Texas and offers a broad range of banking, wealth management and insurance services through Encore Bank, N.A., and its affiliated companies. Encore Bank operates 12 private client offices in the Greater Houston area. Headquartered in Houston and with $1.5 billion in assets, Encore Bank builds relationships with professional firms, privately-owned businesses, investors and affluent individuals. Encore Bank offers a full range of business and personal banking products and services, as well as financial planning, wealth management, trust and insurance products through its trust division, Encore Trust, and its affiliated companies, Linscomb & Williams and Town & Country Insurance. Products and services offered by Encore Bank's affiliates are not FDIC insured. The Company's common stock is listed on the NASDAQ Global Market under the symbol "EBTX".
The Encore Bancshares, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4257
This press release contains certain financial information determined by methods other than in accordance with GAAP. Specifically, Encore reviews tangible book value per share, return on average tangible common equity and the tangible common equity to tangible assets ratio for internal planning and forecasting purposes. Encore reviews its net interest income, net interest spread and net interest margin on a tax equivalent basis, which is standard practice in the banking industry. Encore has included in this press release information relating to these non-GAAP financial measures for the applicable periods presented. Encore's management believes these non-GAAP financial measures provide information useful to investors in understanding our financial results and believes that its presentation, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for operating results determined in accordance with GAAP and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
This press release contains certain forward-looking information about Encore Bancshares that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve risks and uncertainties that may cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: competitive pressure among financial institutions; volatility and disruption in national and international financial markets; government intervention in the U.S. financial system; our ability to expand and grow our businesses and operations and to realize the cost savings and revenue enhancements expected from such activities; a deterioration of credit quality or a reduced demand for credit; incorrect assumptions underlying the establishment of and provisions made to the allowance for loan losses; changes in the interest rate environment; the continued service of key management personnel; our ability to attract, motivate and retain key employees; the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations; changes in availability of funds; our ability to fully realize our net deferred tax asset; our ability to raise capital when needed; general economic conditions, either nationally, regionally or in the market areas in which we operate; legislative or regulatory developments or changes in laws; changes in the securities markets and other risks that are described from time to time in our 2010 Annual Report on Form 10-K and other reports and documents filed with the Securities and Exchange Commission.
www.encorebank.com
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | |
| FINANCIAL HIGHLIGHTS |
| | | | | |
| (Unaudited, amounts in thousands, except per share data) |
| | | |
| | As of and for the Three | As of and for the Years |
| | Months Ended December 31, | Ended December 31, |
| | 2011 | 2010 | 2011 | 2010 |
| | | | | |
| Operations Statement Data: | | | | |
| Interest income | $ 15,915 | $ 16,725 | $ 63,979 | $ 68,803 |
| Interest expense | 4,229 | 5,624 | 18,192 | 24,304 |
| Net interest income | 11,686 | 11,101 | 45,787 | 44,499 |
| Provision for loan losses | 1,898 | 2,597 | 7,252 | 35,169 |
| Net interest income after provision for loan losses | 9,788 | 8,504 | 38,535 | 9,330 |
| Noninterest income | 7,248 | 9,859 | 28,663 | 31,743 |
| Noninterest expense | 13,924 | 20,213 | 57,249 | 78,600 |
| Net earnings (loss) before income taxes | 3,112 | (1,850) | 9,949 | (37,527) |
| Income tax expense (benefit) | 990 | (950) | 2,709 | (13,297) |
| Net earnings (loss) | $ 2,122 | $ (900) | $ 7,240 | $ (24,230) |
| | | | | |
| Earnings (loss) available to common shareholders (1) | $ 1,943 | $ (1,457) | $ 1,309 | $ (26,454) |
| | | | | |
| Common Share Data: | | | | |
| Basic earnings (loss) per share (2) | $ 0.17 | $ (0.13) | $ 0.11 | $ (2.37) |
| Diluted earnings (loss) per share (2) | 0.17 | (0.13) | 0.11 | (2.37) |
| Book value per share | 12.05 | 12.00 | 12.05 | 12.00 |
| Tangible book value per share (3) | 8.59 | 8.45 | 8.59 | 8.45 |
| | | | | |
| Average common shares outstanding | 11,654 | 11,391 | 11,597 | 11,179 |
| Diluted average common shares outstanding | 11,699 | 11,391 | 11,651 | 11,179 |
| Common shares outstanding at end of period | 11,657 | 11,431 | 11,657 | 11,431 |
| | | | | |
| Selected Performance Ratios: | | | | |
| Return on average assets | 0.56% | (0.22)% | 0.49% | (1.48)% |
| Return on average common equity (2) | 5.52% | (4.11)% | 0.94% | (17.41)% |
| Return on average tangible common equity (2)(3) | 7.77% | (5.79)% | 1.32% | (23.81)% |
| Taxable-equivalent net interest margin (3) | 3.35% | 2.89% | 3.37% | 2.93% |
| Efficiency ratio (4) | 71.29% | 77.96% | 75.03% | 91.45% |
| Noninterest income to total revenue | 38.28% | 47.04% | 38.50% | 41.63% |
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| (1) Includes $4,102 accelerated amortization of preferred stock discount for the year ended December 31, 2011. |
| (2) Using earnings (loss) available to common shareholders. |
| (3) Non-GAAP measure. See calculation of tangible common equity and taxable-equivalent amounts in subsequent tables. |
| (4) Total noninterest expense (excluding intangible amortization and write down of assets held-for-sale) divided by the sum |
| of net interest income and noninterest income (excluding gains or losses on sales of securities and gain on sale of branches). |
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| Encore Bancshares, Inc. and Subsidiaries |
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| CONSOLIDATED BALANCE SHEETS |
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| (Unaudited, dollars in thousands, except per share data) |
| | | | | | |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 |
| | | | | | |
| ASSETS | | | | | |
| Cash and due from banks | $ 13,397 | $ 13,797 | $ 13,025 | $ 18,477 | $ 13,523 |
| Interest-bearing deposits in banks | 114,403 | 100,719 | 91,790 | 49,109 | 49,478 |
| Federal funds sold and other | 1,269 | 1,207 | 904 | 856 | 1,098 |
| Cash and cash equivalents | 129,069 | 115,723 | 105,719 | 68,442 | 64,099 |
| Securities available-for-sale, at fair value | 170,801 | 164,735 | 183,058 | 241,370 | 251,784 |
| Securities held-to-maturity, at amortized cost | 99,630 | 102,871 | 104,565 | 101,235 | 107,618 |
| Loans held-for-sale, at lower of cost or fair value | 1,778 | 7,277 | 863 | 2,913 | 10,915 |
| Loans receivable | 1,023,486 | 978,236 | 970,566 | 936,036 | 920,457 |
| Allowance for loan losses | (17,968) | (18,007) | (19,110) | (19,008) | (18,639) |
| Net loans receivable | 1,005,518 | 960,229 | 951,456 | 917,028 | 901,818 |
| Federal Home Loan Bank of Dallas stock, at cost | 9,829 | 9,820 | 9,810 | 10,206 | 9,610 |
| Other real estate owned | 2,090 | 5,135 | 7,200 | 7,311 | 9,298 |
| Premises and equipment, net | 6,537 | 6,486 | 6,545 | 6,757 | 7,023 |
| Cash surrender value of life insurance policies | 16,508 | 16,363 | 16,217 | 16,078 | 15,935 |
| Goodwill | 35,799 | 35,799 | 35,799 | 35,799 | 35,799 |
| Other intangible assets, net | 4,533 | 4,694 | 4,434 | 4,575 | 4,716 |
| Other assets | 40,491 | 40,534 | 40,829 | 46,467 | 47,882 |
| | $ 1,522,583 | $ 1,469,666 | $ 1,466,495 | $ 1,458,181 | $ 1,466,497 |
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| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits: | | | | | |
| Noninterest-bearing | $ 334,859 | $ 281,981 | $ 236,873 | $ 219,629 | $ 219,756 |
| Interest-bearing | 765,378 | 765,715 | 806,627 | 821,163 | 830,688 |
| Total deposits | 1,100,237 | 1,047,696 | 1,043,500 | 1,040,792 | 1,050,444 |
| Borrowings and repurchase agreements | 218,702 | 219,424 | 222,879 | 221,582 | 219,777 |
| Junior subordinated debentures | 20,619 | 20,619 | 20,619 | 20,619 | 20,619 |
| Other liabilities | 9,636 | 9,749 | 7,783 | 7,274 | 9,016 |
| Total liabilities | 1,349,194 | 1,297,488 | 1,294,781 | 1,290,267 | 1,299,856 |
| | | | | | |
| Commitments and contingencies | | | | | |
| Shareholders' equity: | | | | | |
| Preferred stock | 32,914 | 32,914 | 29,766 | 29,633 | 29,500 |
| Common stock | 11,739 | 11,733 | 11,733 | 11,603 | 11,479 |
| Additional paid-in capital | 124,762 | 124,250 | 123,771 | 123,329 | 122,678 |
| Retained earnings | 5,950 | 4,007 | 6,742 | 5,235 | 4,641 |
| Common stock in treasury, at cost | (854) | (823) | (735) | (497) | (455) |
| Accumulated other comprehensive income (loss) | (1,122) | 97 | 437 | (1,389) | (1,202) |
| Shareholders' equity | 173,389 | 172,178 | 171,714 | 167,914 | 166,641 |
| | $ 1,522,583 | $ 1,469,666 | $ 1,466,495 | $ 1,458,181 | $ 1,466,497 |
| | | | | | |
| Ratios and Common Share Data: | | | | | |
| Leverage ratio (1) | 9.74% | 9.34% | 9.67% | 9.29% | 8.10% |
| Tier 1 risk-based capital ratio (1) | 13.20% | 13.37% | 13.23% | 13.05% | 12.83% |
| Total risk-based capital ratio (1) | 14.46% | 14.63% | 14.49% | 14.31% | 14.09% |
| Book value per common share | $ 12.05 | $ 11.95 | $ 12.17 | $ 11.97 | $ 12.00 |
| Tangible book value per common share (2) | 8.59 | 8.47 | 8.72 | 8.48 | 8.45 |
| Tangible common equity to tangible assets (2) | 6.76% | 6.91% | 7.13% | 6.91% | 6.78% |
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| (1) Estimated at December 31, 2011. |
| (2) Non-GAAP measure. See calculation of tangible common equity in subsequent table. |
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| Encore Bancshares, Inc. and Subsidiaries |
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| CONSOLIDATED STATEMENTS OF OPERATIONS |
| | | | | | | | |
| (Unaudited, amounts in thousands, except per share data) |
| | | | | | | | |
| | Three Months Ended | Years Ended |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, | December 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 |
| Interest income: | | | | | | | |
| Loans, including fees | $ 14,189 | $ 13,966 | $ 14,254 | $ 13,442 | $ 14,646 | $ 55,851 | $ 61,189 |
| Securities | 1,569 | 1,714 | 2,025 | 2,305 | 1,872 | 7,613 | 6,720 |
| Federal funds sold and other | 157 | 162 | 104 | 92 | 207 | 515 | 894 |
| Total interest income | 15,915 | 15,842 | 16,383 | 15,839 | 16,725 | 63,979 | 68,803 |
| Interest expense: | | | | | | | |
| Deposits | 1,798 | 2,142 | 2,234 | 2,340 | 2,562 | 8,514 | 11,393 |
| Deposits held-for-sale | -- | -- | -- | -- | 636 | -- | 3,207 |
| Borrowings and repurchase agreements | 2,131 | 2,131 | 2,117 | 2,106 | 2,128 | 8,485 | 8,510 |
| Junior subordinated debentures | 300 | 298 | 297 | 298 | 298 | 1,193 | 1,194 |
| Total interest expense | 4,229 | 4,571 | 4,648 | 4,744 | 5,624 | 18,192 | 24,304 |
| Net interest income | 11,686 | 11,271 | 11,735 | 11,095 | 11,101 | 45,787 | 44,499 |
| Provision for loan losses | 1,898 | 1,265 | 1,919 | 2,170 | 2,597 | 7,252 | 35,169 |
| Net interest income after provision for loan losses | 9,788 | 10,006 | 9,816 | 8,925 | 8,504 | 38,535 | 9,330 |
| Noninterest income: | | | | | | | |
| Trust and investment management fees | 5,066 | 4,852 | 5,126 | 5,072 | 5,122 | 20,116 | 18,970 |
| Insurance commissions and fees | 1,266 | 1,545 | 1,587 | 1,440 | 1,120 | 5,838 | 5,771 |
| Net gain (loss) on sale of available-for-sale securities | (1) | -- | (64) | (31) | 38 | (96) | 518 |
| Gain on sale of branches | -- | -- | -- | -- | 2,567 | -- | 3,682 |
| Other | 917 | 618 | 685 | 585 | 1,012 | 2,805 | 2,802 |
| Total noninterest income | 7,248 | 7,015 | 7,334 | 7,066 | 9,859 | 28,663 | 31,743 |
| Noninterest expense: | | | | | | | |
| Compensation | 8,513 | 8,464 | 8,414 | 8,706 | 8,469 | 34,097 | 34,161 |
| Occupancy | 1,270 | 1,200 | 1,128 | 1,287 | 1,339 | 4,885 | 5,666 |
| Equipment | 278 | 258 | 268 | 241 | 261 | 1,045 | 1,228 |
| Advertising and promotion | 132 | 107 | 156 | 156 | 137 | 551 | 617 |
| Outside data processing | 775 | 761 | 793 | 783 | 910 | 3,112 | 3,551 |
| Professional fees | 1,229 | 984 | 905 | 1,134 | 1,165 | 4,252 | 4,846 |
| Intangible amortization | 160 | 161 | 143 | 140 | 160 | 604 | 635 |
| FDIC assessment | 309 | 479 | 472 | 798 | 790 | 2,058 | 3,680 |
| Other real estate owned expenses, net | (31) | 1,293 | 666 | 83 | 119 | 2,011 | 7,103 |
| Write down of assets held-for-sale | 265 | -- | 427 | 21 | 5,744 | 713 | 12,084 |
| Other | 1,024 | 1,151 | 740 | 1,006 | 1,119 | 3,921 | 5,029 |
| Total noninterest expense | 13,924 | 14,858 | 14,112 | 14,355 | 20,213 | 57,249 | 78,600 |
| Net earnings (loss) before income taxes | 3,112 | 2,163 | 3,038 | 1,636 | (1,850) | 9,949 | (37,527) |
| Income tax expense (benefit) | 990 | 262 | 973 | 484 | (950) | 2,709 | (13,297) |
| Net earnings (loss) | $ 2,122 | $ 1,901 | $ 2,065 | $ 1,152 | $ (900) | $ 7,240 | $ (24,230) |
| Earnings (loss) available to common shareholders (1) | $ 1,943 | $ (2,735) | $ 1,507 | $ 594 | $ (1,457) | $ 1,309 | $ (26,454) |
| Earnings (loss) per common share: | | | | | | | |
| Basic | $ 0.17 | $ (0.23) | $ 0.13 | $ 0.05 | $ (0.13) | $ 0.11 | $ (2.37) |
| Diluted | 0.17 | (0.23) | 0.13 | 0.05 | (0.13) | 0.11 | (2.37) |
| Average common shares outstanding | 11,654 | 11,658 | 11,582 | 11,491 | 11,391 | 11,597 | 11,179 |
| Diluted average common shares outstanding | 11,699 | 11,658 | 11,628 | 11,575 | 11,391 | 11,651 | 11,179 |
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| (1) Includes $4,102 accelerated amortization of preferred stock discount for the three months ended September 30, 2011 and full year 2011. |
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| Encore Bancshares, Inc. and Subsidiaries |
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| AVERAGE CONSOLIDATED BALANCE SHEETS |
| | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | |
| | Three Months Ended |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 |
| | | | | | |
| Assets: | | | | | |
| Interest-earning assets: | | | | | |
| Loans | $ 1,002,206 | $ 973,060 | $ 955,019 | $ 933,361 | $ 1,004,472 |
| Securities | 268,607 | 275,900 | 315,681 | 354,250 | 292,241 |
| Federal funds sold and other | 123,715 | 160,000 | 71,909 | 60,084 | 243,304 |
| Total interest-earning assets | 1,394,528 | 1,408,960 | 1,342,609 | 1,347,695 | 1,540,017 |
| Less: Allowance for loan losses | (17,829) | (19,429) | (19,219) | (18,604) | (20,433) |
| Noninterest-earning assets | 117,378 | 122,940 | 127,583 | 131,183 | 131,861 |
| Noninterest-earning assets held-for-sale | -- | -- | -- | -- | 4,403 |
| Total assets | $ 1,494,077 | $ 1,512,471 | $ 1,450,973 | $ 1,460,274 | $ 1,655,848 |
| | | | | | |
| Liabilities and shareholders' equity: | | | | | |
| Interest-bearing liabilities: | | | | | |
| Interest checking | $ 173,079 | $ 170,534 | $ 163,926 | $ 162,577 | $ 148,875 |
| Money market and savings | 243,992 | 257,040 | 269,422 | 287,029 | 298,725 |
| Time deposits | 345,664 | 364,946 | 379,721 | 379,142 | 386,634 |
| Interest-bearing deposits held-for-sale | -- | -- | -- | -- | 167,869 |
| Total interest-bearing deposits | 762,735 | 792,520 | 813,069 | 828,748 | 1,002,103 |
| Borrowings and repurchase agreements | 219,699 | 223,258 | 223,145 | 224,792 | 220,042 |
| Junior subordinated debentures | 20,619 | 20,619 | 20,619 | 20,619 | 20,619 |
| Total interest-bearing liabilities | 1,003,053 | 1,036,397 | 1,056,833 | 1,074,159 | 1,242,764 |
| Noninterest-bearing liabilities: | | | | | |
| Noninterest-bearing deposits | 309,919 | 295,823 | 217,624 | 210,885 | 220,169 |
| Noninterest-bearing deposits held-for-sale | -- | -- | -- | -- | 14,767 |
| Other liabilities | 8,487 | 7,975 | 7,225 | 8,344 | 8,019 |
| Other liabilities held-for-sale | -- | -- | -- | -- | 197 |
| Total liabilities | 1,321,459 | 1,340,195 | 1,281,682 | 1,293,388 | 1,485,916 |
| Shareholders' equity: | | | | | |
| Preferred | 32,914 | 29,944 | 29,680 | 29,513 | 29,412 |
| Common | 139,704 | 142,332 | 139,611 | 137,373 | 140,520 |
| Total shareholders' equity | 172,618 | 172,276 | 169,291 | 166,886 | 169,932 |
| Total liabilities and shareholders' equity | $ 1,494,077 | $ 1,512,471 | $ 1,450,973 | $ 1,460,274 | $ 1,655,848 |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | | |
| SELECTED FINANCIAL DATA |
| | | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | | |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, | |
| Loan Portfolio: | 2011 | 2011 | 2011 | 2011 | 2010 | |
| Commercial: | | | | | | |
| Commercial | $ 214,575 | $ 194,393 | $ 194,260 | $ 164,053 | $ 147,090 | |
| Commercial real estate | 210,437 | 185,541 | 167,973 | 168,893 | 166,043 | |
| Real estate construction | 59,589 | 52,993 | 54,769 | 52,106 | 46,326 | |
| Total commercial | 484,601 | 432,927 | 417,002 | 385,052 | 359,459 | |
| Consumer: | | | | | | |
| Residential real estate first lien | 202,968 | 201,485 | 205,171 | 205,012 | 205,531 | |
| Residential real estate second lien | 252,825 | 258,020 | 262,958 | 263,286 | 269,727 | |
| Home equity lines | 55,191 | 56,869 | 58,553 | 59,832 | 60,609 | |
| Consumer other | 27,901 | 28,935 | 26,882 | 22,854 | 25,131 | |
| Total consumer | 538,885 | 545,309 | 553,564 | 550,984 | 560,998 | |
| Loans receivable | 1,023,486 | 978,236 | 970,566 | 936,036 | 920,457 | |
| Loans held-for-sale | 1,778 | 7,277 | 863 | 2,913 | 10,915 | |
| Total loans | $ 1,025,264 | $ 985,513 | $ 971,429 | $ 938,949 | $ 931,372 | |
| | | | | | | |
| Asset Quality: | | | | | | |
| Nonaccrual loans - Texas (1) | $ 7,514 | $ 9,203 | $ 7,655 | $ 14,557 | $ 15,167 | |
| Nonaccrual loans - Florida (1) | 3,275 | 8,850 | 8,897 | 13,169 | 11,310 | |
| Total nonaccrual loans (1) | 10,789 | 18,053 | 16,552 | 27,726 | 26,477 | |
| Other real estate owned - Texas | 377 | 3,589 | 4,155 | 4,226 | 4,783 | |
| Other real estate owned - Florida | 1,713 | 1,546 | 3,045 | 3,085 | 4,515 | |
| Total other real estate owned | 2,090 | 5,135 | 7,200 | 7,311 | 9,298 | |
| Total nonperforming assets | $ 12,879 | $ 23,188 | $ 23,752 | $ 35,037 | $ 35,775 | |
| | | | | | | |
| Accruing loans past due 90 days or more | $ -- | $ -- | $ -- | $ -- | $ 313 | |
| | | | | | | |
| Restructured loans still accruing | $ 4,122 | $ 1,706 | $ 1,522 | $ 1,755 | $ 804 | |
| | | | | | | |
| Asset Quality Ratios: | | | | | | |
| Nonperforming assets to total loans and | | | | | | |
| other real estate owned | 1.25% | 2.34% | 2.43% | 3.70% | 3.80% | |
| Nonperforming assets to total assets | 0.85% | 1.58% | 1.62% | 2.40% | 2.44% | |
| Net charge-offs to average total loans | 0.77% | 0.97% | 0.76% | 0.78% | 1.95% | |
| Allowance for loan losses to period end | | | | | | |
| loans (excluding loans held-for-sale) | 1.76% | 1.84% | 1.97% | 2.03% | 2.02% | |
| Allowance for loan losses to nonaccrual | | | | | | |
| loans (excluding loans held-for-sale) (2) | 166.54% | 136.57% | 115.45% | 74.72% | 94.11% | |
| | | | | | | |
| Deposits: | | | | | | |
| Noninterest-bearing deposits | $ 334,859 | $ 281,981 | $ 236,873 | $ 219,629 | $ 219,756 | |
| Interest checking | 183,339 | 164,781 | 179,292 | 155,262 | 173,839 | |
| Money market and savings | 238,579 | 248,009 | 252,100 | 285,612 | 278,507 | |
| Time deposits less than $100 | 102,207 | 107,487 | 112,975 | 114,819 | 117,974 | |
| Core deposits | 858,984 | 802,258 | 781,240 | 775,322 | 790,076 | |
| Time deposits $100 and greater | 224,210 | 228,316 | 236,653 | 239,936 | 239,129 | |
| Brokered deposits | 17,043 | 17,122 | 25,607 | 25,534 | 21,239 | |
| Total deposits | $ 1,100,237 | $ 1,047,696 | $ 1,043,500 | $ 1,040,792 | $ 1,050,444 | |
| | | | | | | |
| Assets Under Management | $ 2,778,693 | $ 2,682,467 | $ 2,863,293 | $ 2,855,544 | $ 2,857,390 | |
| | | | | | | |
| (1) Nonaccrual troubled debt restructurings are included in nonaccrual loans. | |
| (2) Excludes $0, $4,868, $0, $2,288 and $6,671 nonaccrual loans held-for-sale. | |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | |
| ALLOWANCE FOR LOAN LOSSES |
| | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | |
| | Three Months Ended |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 |
| | | | | | |
| Allowance for loan losses at beginning of quarter | $ 18,007 | $ 19,110 | $ 19,008 | $ 18,639 | $ 20,967 |
| | | | | | |
| Charge-offs: | | | | | |
| Commercial: | | | | | |
| Commercial | (12) | (1) | (112) | (196) | (21) |
| Commercial real estate | (264) | (1,212) | (752) | (465) | (14) |
| Real estate construction | -- | (64) | (137) | (4) | (2,329) |
| Total commercial | (276) | (1,277) | (1,001) | (665) | (2,364) |
| | | | | | |
| Consumer: | | | | | |
| Residential real estate first lien | (294) | (319) | (305) | (222) | (1,261) |
| Residential real estate second lien | (607) | (623) | (513) | (1,059) | (1,106) |
| Home equity lines | (938) | (398) | (360) | (296) | (430) |
| Consumer other | (48) | (14) | (67) | (36) | (9) |
| Total consumer | (1,887) | (1,354) | (1,245) | (1,613) | (2,806) |
| | | | | | |
| Total charge-offs | (2,163) | (2,631) | (2,246) | (2,278) | (5,170) |
| | | | | | |
| Recoveries: | | | | | |
| Commercial: | | | | | |
| Commercial | 51 | 76 | 10 | 3 | 52 |
| Commercial real estate | 8 | 2 | 141 | 12 | -- |
| Real estate construction | 1 | 1 | 18 | 131 | 54 |
| Total commercial | 60 | 79 | 169 | 146 | 106 |
| | | | | | |
| Consumer: | | | | | |
| Residential real estate first lien | 35 | 90 | 41 | 223 | -- |
| Residential real estate second lien | 97 | 27 | 123 | 71 | 31 |
| Home equity lines | 21 | 28 | 23 | 19 | 80 |
| Consumer other | 13 | 39 | 73 | 18 | 28 |
| Total consumer | 166 | 184 | 260 | 331 | 139 |
| | | | | | |
| Total recoveries | 226 | 263 | 429 | 477 | 245 |
| | | | | | |
| Net charge-offs | (1,937) | (2,368) | (1,817) | (1,801) | (4,925) |
| | | | | | |
| Provision for loan losses | 1,898 | 1,265 | 1,919 | 2,170 | 2,597 |
| | | | | | |
| Allowance for loan losses at end of quarter | $ 17,968 | $ 18,007 | $ 19,110 | $ 19,008 | $ 18,639 |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | | | |
| SEGMENT OPERATIONS |
| | | | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | | | |
| | As of and for the Three Months Ended | As of and for the Years |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, | Ended December 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 |
| Banking | | | | | | | |
| Net interest income | $ 11,974 | $ 11,558 | $ 12,014 | $ 11,367 | $ 11,361 | $ 46,913 | $ 45,525 |
| Provision for loan losses | 1,898 | 1,265 | 1,919 | 2,170 | 2,597 | 7,252 | 35,169 |
| Noninterest income | 892 | 574 | 535 | 529 | 3,602 | 2,530 | 6,906 |
| Noninterest expense | 9,176 | 9,923 | 9,348 | 9,563 | 15,476 | 38,010 | 60,031 |
| Earnings (loss) before income taxes | 1,792 | 944 | 1,282 | 163 | (3,110) | 4,181 | (42,769) |
| Income tax expense (benefit) | 521 | 258 | 353 | (34) | (1,309) | 1,098 | (15,066) |
| Net earnings (loss) | $ 1,271 | $ 686 | $ 929 | $ 197 | $ (1,801) | $ 3,083 | $ (27,703) |
| Total assets at period end | $ 1,527,207 | $ 1,473,144 | $ 1,469,429 | $ 1,467,887 | $ 1,473,837 | $ 1,527,207 | $ 1,473,837 |
| | | | | | | | |
| Wealth Management | | | | | | | |
| Net interest income | $ 11 | $ 10 | $ 16 | $ 24 | $ 34 | $ 61 | $ 149 |
| Noninterest income | 5,070 | 4,884 | 5,132 | 5,089 | 5,130 | 20,175 | 18,979 |
| Noninterest expense | 3,583 | 3,691 | 3,523 | 3,643 | 3,612 | 14,440 | 14,163 |
| Earnings before income taxes | 1,498 | 1,203 | 1,625 | 1,470 | 1,552 | 5,796 | 4,965 |
| Income tax expense | 531 | 426 | 574 | 516 | 475 | 2,047 | 1,686 |
| Net earnings | $ 967 | $ 777 | $ 1,051 | $ 954 | $ 1,077 | $ 3,749 | $ 3,279 |
| Total assets at period end | $ 57,031 | $ 55,951 | $ 56,105 | $ 64,157 | $ 63,254 | $ 57,031 | $ 63,254 |
| | | | | | | | |
| Insurance | | | | | | | |
| Net interest income | $ 1 | $ 1 | $ 2 | $ 2 | $ 4 | $ 6 | $ 19 |
| Noninterest income | 1,286 | 1,557 | 1,667 | 1,448 | 1,127 | 5,958 | 5,858 |
| Noninterest expense | 1,165 | 1,244 | 1,241 | 1,149 | 1,125 | 4,799 | 4,406 |
| Earnings before income taxes | 122 | 314 | 428 | 301 | 6 | 1,165 | 1,471 |
| Income tax expense (benefit) | 43 | 111 | 150 | 106 | (12) | 410 | 501 |
| Net earnings | $ 79 | $ 203 | $ 278 | $ 195 | $ 18 | $ 755 | $ 970 |
| Total assets at period end | $ 8,281 | $ 7,923 | $ 7,370 | $ 6,827 | $ 9,095 | $ 8,281 | $ 9,095 |
| | | | | | | | |
| Other | | | | | | | |
| Net interest expense | $ (300) | $ (298) | $ (297) | $ (298) | $ (298) | $ (1,193) | $ (1,194) |
| Loss before income taxes | (300) | (298) | (297) | (298) | (298) | (1,193) | (1,194) |
| Income tax benefit | (105) | (533) | (104) | (104) | (104) | (846) | (418) |
| Net earnings (loss) | $ (195) | $ 235 | $ (193) | $ (194) | $ (194) | $ (347) | $ (776) |
| Total assets at period end | $ (69,936) | $ (67,352) | $ (66,409) | $ (80,690) | $ (79,689) | $ (69,936) | $ (79,689) |
| | | | | | | | |
| Consolidated | | | | | | | |
| Net interest income | $ 11,686 | $ 11,271 | $ 11,735 | $ 11,095 | $ 11,101 | $ 45,787 | $ 44,499 |
| Provision for loan losses | 1,898 | 1,265 | 1,919 | 2,170 | 2,597 | 7,252 | 35,169 |
| Noninterest income | 7,248 | 7,015 | 7,334 | 7,066 | 9,859 | 28,663 | 31,743 |
| Noninterest expense | 13,924 | 14,858 | 14,112 | 14,355 | 20,213 | 57,249 | 78,600 |
| Earnings (loss) before income taxes | 3,112 | 2,163 | 3,038 | 1,636 | (1,850) | 9,949 | (37,527) |
| Income tax expense (benefit) | 990 | 262 | 973 | 484 | (950) | 2,709 | (13,297) |
| Net earnings (loss) | $ 2,122 | $ 1,901 | $ 2,065 | $ 1,152 | $ (900) | $ 7,240 | $ (24,230) |
| Total assets at period end | $ 1,522,583 | $ 1,469,666 | $ 1,466,495 | $ 1,458,181 | $ 1,466,497 | $ 1,522,583 | $ 1,466,497 |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | | |
| TAXABLE-EQUIVALENT (TE) YIELD ANALYSIS (1) |
| | | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | | |
| | Three Months Ended December 31, |
| | 2011 | 2010 |
| | Average | Interest | Average | Average | Interest | Average |
| | Outstanding | Income/ | Yield/ | Outstanding | Income/ | Yield/ |
| | Balance | Expense | Rate | Balance | Expense | Rate |
| Assets: | | | | | | |
| Interest-earning assets: | | | | | | |
| Loans - TE yield | $ 1,002,206 | $ 14,228 | 5.63% | $ 1,004,472 | $ 14,702 | 5.81% |
| Securities - TE yield | 268,607 | 1,629 | 2.41% | 292,241 | 1,935 | 2.63% |
| Federal funds sold and other | 123,715 | 157 | 0.50% | 243,304 | 207 | 0.34% |
| Total interest-earning assets - TE yield | 1,394,528 | 16,014 | 4.56% | 1,540,017 | 16,844 | 4.34% |
| Less: Allowance for loan losses | (17,829) | | | (20,433) | | |
| Noninterest-earning assets | 117,378 | | | 131,861 | | |
| Noninterest-earning assets held-for-sale | -- | | | 4,403 | | |
| Total assets | $ 1,494,077 | | | $ 1,655,848 | | |
| | | | | | | |
| Liabilities and shareholders' equity: | | | | | | |
| Interest-bearing liabilities: | | | | | | |
| Interest checking | $ 173,079 | $ 42 | 0.10% | $ 148,875 | $ 90 | 0.24% |
| Money market and savings | 243,992 | 108 | 0.18% | 298,725 | 368 | 0.49% |
| Time deposits | 345,664 | 1,648 | 1.89% | 386,634 | 2,104 | 2.16% |
| Interest-bearing deposits held-for-sale | -- | -- | | 167,869 | 636 | 1.50% |
| Total interest-bearing deposits | 762,735 | 1,798 | 0.94% | 1,002,103 | 3,198 | 1.27% |
| Borrowings and repurchase agreements | 219,699 | 2,131 | 3.85% | 220,042 | 2,128 | 3.84% |
| Junior subordinated debentures | 20,619 | 300 | 5.77% | 20,619 | 298 | 5.73% |
| Total interest-bearing liabilities | 1,003,053 | 4,229 | 1.67% | 1,242,764 | 5,624 | 1.80% |
| Noninterest-bearing liabilities: | | | | | | |
| Noninterest-bearing deposits | 309,919 | | | 220,169 | | |
| Noninterest-bearing deposits held-for-sale | -- | | | 14,767 | | |
| Other liabilities | 8,487 | | | 8,019 | | |
| Other liabilities held-for-sale | -- | | | 197 | | |
| Total liabilities | 1,321,459 | | | 1,485,916 | | |
| Shareholders' equity | 172,618 | | | 169,932 | | |
| Total liabilities and shareholders' equity | $ 1,494,077 | | | $ 1,655,848 | | |
| | | | | | | |
| Net interest income - TE | | $ 11,785 | | | $ 11,220 | |
| | | | | | | |
| Net interest spread - TE | | | 2.89% | | | 2.54% |
| Net interest margin - TE | | | 3.35% | | | 2.89% |
| | | | | | | |
| (1) Non-GAAP measure. See calculation of taxable-equivalent amounts in subsequent table. |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | | |
| TAXABLE-EQUIVALENT (TE) YIELD ANALYSIS (1) |
| | | | | | | |
| (Unaudited, dollars in thousands) |
| | | | | | | |
| | Years Ended December 31, |
| | 2011 | 2010 |
| | Average | Interest | Average | Average | Interest | Average |
| | Outstanding | Income/ | Yield/ | Outstanding | Income/ | Yield/ |
| | Balance | Expense | Rate | Balance | Expense | Rate |
| Assets: | | | | | | |
| Interest-earning assets: | | | | | | |
| Loans - TE yield | $ 966,120 | $ 56,039 | 5.80% | $ 1,046,164 | $ 61,433 | 5.87% |
| Securities - TE yield | 303,299 | 7,863 | 2.59% | 229,807 | 6,964 | 3.03% |
| Federal funds sold and other | 104,255 | 515 | 0.49% | 257,408 | 894 | 0.35% |
| Total interest-earning assets - TE yield | 1,373,674 | 64,417 | 4.69% | 1,533,379 | 69,291 | 4.52% |
| Less: Allowance for loan losses | (18,770) | | | (24,751) | | |
| Noninterest-earning assets | 124,728 | | | 127,162 | | |
| Noninterest-earning assets held-for-sale | -- | | | 5,104 | | |
| Total assets | $ 1,479,632 | | | $ 1,640,894 | | |
| | | | | | | |
| Liabilities and shareholders' equity: | | | | | | |
| Interest-bearing liabilities: | | | | | | |
| Interest checking | $ 167,566 | $ 280 | 0.17% | $ 146,863 | $ 415 | 0.28% |
| Money market and savings | 264,233 | 870 | 0.33% | 264,227 | 1,763 | 0.67% |
| Time deposits | 367,270 | 7,364 | 2.01% | 403,236 | 9,215 | 2.29% |
| Interest-bearing deposits held-for-sale | -- | -- | | 190,157 | 3,207 | 1.69% |
| Total interest-bearing deposits | 799,069 | 8,514 | 1.07% | 1,004,483 | 14,600 | 1.45% |
| Borrowings and repurchase agreements | 222,711 | 8,485 | 3.81% | 219,914 | 8,510 | 3.87% |
| Junior subordinated debentures | 20,619 | 1,193 | 5.79% | 20,619 | 1,194 | 5.79% |
| Total interest-bearing liabilities | 1,042,399 | 18,192 | 1.75% | 1,245,016 | 24,304 | 1.95% |
| Noninterest-bearing liabilities: | | | | | | |
| Noninterest-bearing deposits | 258,936 | | | 189,071 | | |
| Noninterest-bearing deposits held-for-sale | -- | | | 16,188 | | |
| Other liabilities | 8,008 | | | 9,210 | | |
| Other liabilities held-for-sale | -- | | | 242 | | |
| Total liabilities | 1,309,343 | | | 1,459,727 | | |
| Shareholders' equity | 170,289 | | | 181,167 | | |
| Total liabilities and shareholders' equity | $ 1,479,632 | | | $ 1,640,894 | | |
| | | | | | | |
| Net interest income - TE | | $ 46,225 | | | $ 44,987 | |
| | | | | | | |
| Net interest spread - TE | | | 2.94% | | | 2.57% |
| Net interest margin - TE | | | 3.37% | | | 2.93% |
| | | | | | | |
| (1) Non-GAAP measure. See calculation of taxable-equivalent amounts in subsequent table. |
| |
| Encore Bancshares, Inc. and Subsidiaries |
| | | | | | |
| NON-GAAP FINANCIAL MEASURES |
| | | | | | |
| (Unaudited, amounts in thousands) |
| | | | | | |
| | Dec 31, | Sept 30, | June 30, | March 31, | Dec 31, |
| | 2011 | 2011 | 2011 | 2011 | 2010 |
| | | | | | |
| Shareholders' equity (GAAP) | $ 173,389 | $ 172,178 | $ 171,714 | $ 167,914 | $ 166,641 |
| Less: Preferred stock | 32,914 | 32,914 | 29,766 | 29,633 | 29,500 |
| Goodwill and other intangible assets, net | 40,332 | 40,493 | 40,233 | 40,374 | 40,515 |
| Tangible common equity (1) | $ 100,143 | $ 98,771 | $ 101,715 | $ 97,907 | $ 96,626 |
| | | | | | |
| Total assets (GAAP) | $ 1,522,583 | $ 1,469,666 | $ 1,466,495 | $ 1,458,181 | $ 1,466,497 |
| Less: Goodwill and other intangible assets, net | 40,332 | 40,493 | 40,233 | 40,374 | 40,515 |
| Tangible assets | $ 1,482,251 | $ 1,429,173 | $ 1,426,262 | $ 1,417,807 | $ 1,425,982 |
| | | | | | |
| Common shares outstanding at end of period | 11,657 | 11,655 | 11,663 | 11,552 | 11,431 |
| | | | | | |
| (1) Tangible common equity, a non-GAAP financial measure, includes total equity, less preferred equity, goodwill and other intangible assets. Management reviews tangible common equity along with other measures of capital as part of its financial analyses and has included this information because of current interest on the part of market participants in tangible common equity as a measure of capital. The methodology of determining tangible common equity may differ among companies. |
| | | | | | |
| | Three Months Ended | | Years Ended |
| | December 31, | | December 31, |
| | 2011 | 2010 | | 2011 | 2010 |
| Net interest income (GAAP) | $ 11,686 | $ 11,101 | | $ 45,787 | $ 44,499 |
| Taxable-equivalent adjustment (1) | 99 | 119 | | 438 | 488 |
| Net interest income on a taxable-equivalent basis | $ 11,785 | $ 11,220 | | $ 46,225 | $ 44,987 |
| | | | | | |
| (1) Net interest income, net interest spread and net interest margin are reported on a taxable-equivalent basis. The taxable-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest income, net interest spread and net interest margin on a fully taxable-equivalent basis. Management believes these measures provide useful information to investors by allowing them to make peer comparisons. |
CONTACT: Patrick Oakes
Chief Financial Officer
713.787.3106
James S. D'Agostino, Jr.
Chairman and CEO
713.787.3103