EXHIBIT 99.1
Two River Bancorp Reports 2015 Third Quarter and Nine Months Financial Results; Highlighted by Asset Quality Improvements
TINTON FALLS, N.J., Oct. 27, 2015 (GLOBE NEWSWIRE) -- Two River Bancorp (Nasdaq:TRCB) (the "Company"), the parent company of Two River Community Bank ("Two River"), today reported financial results for the third quarter and first nine months of 2015.
Quarterly Operating and Financial Highlights
- Net income available to common shareholders increased 1.1% to $1.68 million, or $0.21 per diluted share, in the third quarter of 2015, up from $1.66 million, or $0.20 per diluted share in the corresponding prior year's quarter, which included no required provision for loan losses as a result of non-recurring net loan recoveries of $497,000 during that 2014 period. On a linked quarter basis, third quarter 2015 net income available to common shareholders increased 16.0% from the second quarter of 2015.
- Non-performing assets to total assets decreased to 0.50% from 0.75% at June 30, 2015 and from 1.00% at December 31, 2014. During the third quarter of 2015, non-performing assets declined $2.2 million, or 34.2%.
- Return on average assets (ROAA) was 0.79% for the third quarter of 2015, compared to 0.71% for the previous quarter and 0.87% for the third quarter of 2014.
- Return on average equity was 6.95% for the three months ended September 30, 2015, compared to 6.15% for the previous quarter and 6.85% for the third quarter of 2014.
- Net interest margin for the third quarter of 2015 was 3.65%, compared to 3.65% for the previous quarter and 3.80% for the third quarter of 2014.
- Tangible book value per share was $9.28 at September 30, 2015, compared to $8.79 at December 31, 2014 and $8.63 at September 30, 2014.
- Mortgage banking fees increased 128.7% to $327,000 on a linked quarter basis and increased 505.6% compared to the same prior year's quarter.
- Total assets at September 30, 2015 increased 7.8% to $842.3 million from year-end 2014.
Management Commentary – 2015 Third Quarter Review
Mr. William D. Moss, President and CEO, stated, "The results for the third quarter were strong throughout the Company. We reported improved asset quality and higher non-interest income through the growth in our mortgage banking business. We were particularly pleased to report higher net income during the period. This was achieved despite an unusual third quarter for the prior year where we had $497,000 in non-recurring net loan recoveries, which resulted in no required loan loss provision during that period."
Management Commentary – Loan Growth / Non-Interest Income
Mr. Moss continued, "We have maintained our lending standards without compromising on rate or credit quality. The majority of Two River's loan growth during 2015 has been driven by demand in our core commercial real estate lending, with total loans up 7.6% from year-end 2014. During the third quarter, we achieved modest loan growth even after the sale of $5.6 million of seasoned portfolio residential adjustable rate mortgages. The sale resulted in a $113,000 gain, which is in-line with our goal of building a residential mortgage portfolio that provides opportunities to increase non-interest income."
Mr. Moss added, "We have achieved considerable growth in mortgage banking revenues since the repositioning of our residential mortgage operations in late 2014. This enhanced revenue stream has been the primary driver of higher non-interest income during the period. However, we still feel there is considerable growth potential as we move into 2016."
Share Repurchase Program
As previously announced in December 2014, the Company's Board of Directors approved a share repurchase program for 2015. Under this program, the Company may repurchase up to $2.0 million of its common stock. During the third quarter of 2015, the Company repurchased 27,800 shares, for a total of $252,000.
Dividend Information
On October 21, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.035 per share, payable on December 4, 2015 to common shareholders of record at the close of business on November 13, 2015, which marks the 11th consecutive quarterly cash dividend paid by the Company to its shareholders.
Key Quarterly Performance Metrics
| | 3rd Qtr.
2015 | 2nd Qtr.
2015 | 1st Qtr.
2015 | 4th Qtr.
2014 | 3rd Qtr.
2014 | 9 Mo.
Ended
9/30/15 | 9 Mo.
Ended
9/30/14 |
| | | | | | | | |
| Net Income (000's) | $1,692 | $1,461 | $1,443 | $1,459 | $1,688 | $4,596 | $4,558 |
| Income Available to Common Shareholders (000's) | $1,677 | $1,446 | $1,428 | $1,432 | $1,658 | $4,551 | $4,468 |
| Earnings per Common Share – Diluted | $0.21 | $0.18 | $0.18 | $0.18 | $0.20 | $0.56 | $0.55 |
| Return on Average Assets | 0.79% | 0.71% | 0.74% | 0.74% | 0.87% | 0.75% | 0.80% |
| Return on Average Tangible Assets (1) | 0.80% | 0.73% | 0.76% | 0.76% | 0.89% | 0.76% | 0.82% |
| Return on Average Equity | 6.95% | 6.15% | 6.20% | 5.91% | 6.85% | 6.44% | 6.31% |
| Return on Average Tangible Equity (1) | 8.55% | 7.59% | 7.67% | 7.26% | 8.42% | 7.94% | 7.78% |
| Net Interest Margin | 3.65% | 3.65% | 3.77% | 3.75% | 3.80% | 3.69% | 3.80% |
| Non-Performing Assets to Total Assets | 0.50% | 0.75% | 0.75% | 1.00% | 1.03% | 0.50% | 1.03% |
| Allowance as a % of Loans | 1.25% | 1.23% | 1.26% | 1.29% | 1.35% | 1.25% | 1.35% |
| (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. | | | | |
Loan Composition
The components of the Company's loan portfolio at September 30, 2015 and December 31, 2014 are as follows:
| | (In Thousands) |
| | September 30,
2015 | December 31,
2014 |
| Commercial and industrial | $ 96,807 | $ 96,514 |
| Real estate – construction | 98,355 | 89,145 |
| Real estate – commercial | 415,525 | 383,777 |
| Real estate – residential | 37,761 | 30,808 |
| Consumer | 27,703 | 28,095 |
| | 676,151 | 628,339 |
| Allowance for loan losses | (8,429) | (8,069) |
| Unearned fees | (567) | (725) |
| Net Loans | $ 667,155 | $ 619,545 |
2015 Third Quarter and First Nine month Financial Review
Net Income
Net income available to common shareholders for the three months ended September 30, 2015 was $1.68 million, or $0.21 per diluted common share, as compared to $1.66 million, or $0.20 per diluted common share, for the corresponding prior-year period, an increase of 1.1%. The increase was primarily due to higher net interest income and non-interest income, along with a lower effective tax rate, partially offset by higher non-interest expense and provision for loan losses. On a linked quarter basis, third quarter 2015 net income available to common shareholders increased 16.0% from the 2015 second quarter.
Net income available to common shareholders for the nine months ended September 30, 2015 increased 1.9% to $4.55 million, or $0.56 per diluted share, compared to $4.47 million, or $0.55 per diluted share, in the same prior-year period.
Net Interest Income
Net interest income for the quarter ended September 30, 2015 was $7.2 million, an increase of 6.5% compared to $6.8 million in the corresponding prior-year period. This increase was largely due to an increase of $77.3 million, or 10.9%, in average interest earning assets, primarily resulting from growth in the Company's loan portfolio. On a linked quarter basis, net interest income increased by $309,000, or 4.5%, from $6.9 million.
For the first nine months of 2015, net interest income increased 4.2% to $21.0 million from $20.1 million in the prior nine-month period.
Net Interest Margin
The Company reported a net interest margin of 3.65% for the quarter ended September 30, 2015, unchanged from the 3.65% reported in the second quarter of 2015 but down from the 3.80% reported for the same three month period in 2014. The decline from the prior year was primarily the result of the maturity, prepayment and contractual repricing of loans and investment securities during this extended period of lower interest rates.
Net interest margin for the first nine months of 2015 was 3.69%, compared to 3.80% in the prior year period.
Non-Interest Income
Non-interest income for the quarter ended September 30, 2015 totaled $836,000, an increase of $124,000, or 17.4%, compared to the same period in 2014. Non-interest income for the period included higher residential mortgage banking revenue of $273,000 due to higher origination volume and a $113,000 gain on the sale of $5.6 million of residential adjustable rate mortgage ("ARM") loans in September, which was partially offset by lower gains on SBA loan sales of $74,000. Additionally, other loan fees declined $37,000 due to lower loan prepayment fees. On a linked quarter basis, non-interest income decreased $105,000, or 11.2%, from $941,000 in the second quarter of 2015, primarily due to a $207,000 gain on the sale of a branch property in the second quarter.
For the nine months ended September 30, 2015, non-interest income increased $357,000, or 16.3%, to $2.6 million from the same period in 2014.
Non-Interest Expense
Non-interest expense for the quarter ended September 30, 2015 totaled $5.3 million, an increase of $486,000, or 10.1%, compared to the same period in 2014, largely due to increased staff to support growth, along with higher salaries and benefits resulting from both annual merit increases and commissions paid for higher residential mortgage banking volume generated during the quarter. On a linked quarter basis, non-interest expense decreased $69,000, or 1.3%. This decrease was primarily the result of a $104,000 gain from the sale of an OREO property during the current period.
For the nine months ended September 30, 2015, non-interest expense increased $1.3 million to $15.8 million compared to the prior year period.
Provision / Allowance for Loan Losses
During the third quarter of 2015, a provision for loan losses of $120,000 was expensed, compared to no provision for loan losses in the same prior-year period. During the third quarter of 2014, the Company had net loan recoveries of $497,000, which resulted in no provision for loan losses in that period. For the first nine months of 2015, a provision of $400,000 was expensed, compared to $521,000 for the same prior-year period. The Company had $40,000 of net loan charge-offs during the first nine months of 2015, compared to $92,000 in the same prior-year period.
As of September 30, 2015, the Company's allowance for loan losses was $8.4 million as compared to $8.1 million as of December 31, 2014. The loss allowance as a percentage of total loans was 1.25% at September 30, 2015 as compared to 1.29% at December 31, 2014 and 1.35% at September 30, 2014.
Financial Condition / Balance Sheet
At September 30, 2015, the Company maintained capital ratios that were in excess of regulatory standards for well-capitalized institutions. The Company's Tier 1 capital to average assets ratio was 9.55%, its common equity Tier 1 to risk-weighted assets ratio was 10.15%, its Tier 1 capital to risk-weighted assets ratio was 10.97% and its total capital to risk-weighted assets ratio was 12.13%.
Total assets as of September 30, 2015 were $842.3 million, an increase of 7.8%, compared to $781.2 million as of December 31, 2014.
Total loans as of September 30, 2015 were $675.6 million, an increase of 7.6%, compared to $627.6 million reported at December 31, 2014.
Total deposits as of September 30, 2015 were $690.7 million, an increase of 7.5%, compared with $642.4 million as of December 31, 2014. Core checking deposits at September 30, 2015 increased to $285.9 million, up $30.0 million, or 11.7% from year-end, primarily due to a new municipal deposit relationship coupled with seasonality, while savings, money market and time deposits increased $18.3 million, or 4.7%. The Company has continued to focus on building relationship non-interest bearing deposits.
Asset Quality
The Company's non-performing assets at September 30, 2015 decreased to $4.2 million as compared to $6.4 million at June 30, 2015 and $7.8 million at December 31, 2014. Non-performing assets to total assets at September 30, 2015 improved to 0.50%, compared to 0.75% at June 30, 2015 and 1.00% at December 31, 2014.
The improvement during the third quarter was largely due to the sale of a $1.1 million OREO property coupled with the payoffs of two non-accrual loans amounting to $1.1 million. Additionally, performing troubled debt restructured ("TDR") loans declined by $5.9 million.
Non-accrual loans decreased to $3.7 million at September 30, 2015, compared to $4.9 million at June 30, 2015 and $6.2 million at December 31, 2014. OREO and repossessed assets were $495,000 at September 30, 2015, compared to $1.4 million at June 30, 2015 and $1.6 million at December 31, 2014.
Troubled debt restructured loan balances amounted to $12.9 million at September 30, 2015, with all but $1.6 million performing. This compares to $19.5 million at June 30, 2015 and $20.5 million at December 31, 2014.
About the Company
Two River Bancorp is the holding company for Two River Community Bank, which is headquartered in Tinton Falls, New Jersey. Two River Community Bank operates 15 branches and two Loan Production Offices throughout Monmouth, Middlesex, Union, and Ocean Counties, New Jersey. More information about Two River Community Bank and Two River Bancorp is available at www.tworiverbank.com.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; changes in loan and investment prepayment assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; inability to redeem our Series C preferred stock prior to the increase in our dividend rate; and the inability to successfully implement or expand new lines of business or new products and services. For a list of other factors which would affect our results, see the Company's filings with the Securities and Exchange Commission, including those risk factors identified in the "Risk Factor" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2014. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company assumes no obligation for updating any such forward-looking statements at any time, except as required by law.
| TWO RIVER BANCORP |
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
| For the Three and Nine Months Ended September 30, 2015 and 2014 |
| (in thousands, except per share data) |
| | | | | |
| | Three Months Ended
September 30, | Nine Months Ended
September 30, |
| | 2015 | 2014 | 2015 | 2014 |
| INTEREST INCOME: | | | | |
| Loans, including fees | $ 7,834 | $ 7,299 | $ 22,720 | $ 21,578 |
| Securities: | | | | |
| Taxable | 178 | 233 | 607 | 732 |
| Tax-exempt | 188 | 109 | 412 | 326 |
| Interest bearing deposits | 18 | 14 | 58 | 51 |
| Total Interest Income | 8,218 | 7,655 | 23,797 | 22,687 |
| INTEREST EXPENSE: | | | | |
| Deposits | 799 | 713 | 2,325 | 2,176 |
| Securities sold under agreements to repurchase | 19 | 17 | 51 | 47 |
| Borrowings | 155 | 121 | 468 | 365 |
| Total Interest Expense | 973 | 851 | 2,844 | 2,588 |
| Net Interest Income | 7,245 | 6,804 | 20,953 | 20,099 |
| PROVISION FOR LOAN LOSSES | 120 | -- | 400 | 521 |
| Net Interest Income after Provision for Loan Losses | 7,125 | 6,804 | 20,553 | 19,578 |
| NON-INTEREST INCOME: | | | | |
| Service fees on deposit accounts | 142 | 166 | 433 | 526 |
| Mortgage banking | 327 | 54 | 613 | 160 |
| Other loan fees | 32 | 69 | 112 | 310 |
| Earnings from investment in bank-owned life insurance | 112 | 116 | 335 | 347 |
| Gain on sale of SBA loans | 32 | 106 | 309 | 384 |
| Net gain on sale of securities | 9 | 19 | 37 | 19 |
| Gain on sale of premises and equipment | -- | -- | 208 | -- |
| Other income | 182 | 182 | 506 | 450 |
| Total Non-Interest Income | 836 | 712 | 2,553 | 2,196 |
| NON-INTEREST EXPENSES: | | | | |
| Salaries and employee benefits | 3,198 | 2,842 | 9,318 | 8,581 |
| Occupancy and equipment | 964 | 868 | 2,940 | 2,594 |
| Professional | 272 | 191 | 718 | 572 |
| Insurance | 74 | 77 | 249 | 231 |
| FDIC insurance and assessments | 119 | 113 | 324 | 373 |
| Advertising | 120 | 128 | 365 | 294 |
| Data processing | 110 | 95 | 352 | 283 |
| Outside services fees | 131 | 119 | 376 | 348 |
| Amortization of identifiable intangibles | 10 | 19 | 38 | 67 |
| OREO and repossessed asset expenses, impairment and sales, net | (137) | (7) | (161) | (72) |
| Loan workout expenses | 65 | 59 | 278 | 217 |
| Other operating | 382 | 318 | 1,049 | 1,030 |
| Total Non-Interest Expenses | 5,308 | 4,822 | 15,846 | 14,518 |
| Income before Income Taxes | 2,653 | 2,694 | 7,260 | 7,256 |
| INCOME TAX EXPENSE | 961 | 1,006 | 2,664 | 2,698 |
| Net Income | 1,692 | 1,688 | 4,596 | 4,558 |
| Preferred stock dividend | (15) | (30) | (45) | (90) |
| Net Income Available to Common Shareholders | $ 1,677 | $ 1,658 | $ 4,551 | $ 4,468 |
| EARNINGS PER COMMON SHARE: | | | | |
| Basic | $ 0.21 | $ 0.21 | $ 0.57 | $ 0.56 |
| Diluted | $ 0.21 | $ 0.20 | $ 0.56 | $ 0.55 |
| Weighted average common shares outstanding: | | | | |
| Basic | 7,930 | 7,923 | 7,932 | 7,939 |
| Diluted | 8,130 | 8,105 | 8,130 | 8,116 |
| |
| TWO RIVER BANCORP |
| CONSOLIDATED BALANCE SHEETS (Unaudited) |
| (in thousands, except share data) |
| | | |
| | September 30, 2015 | December 31, 2014 |
| ASSETS | | |
| Cash and due from banks | $ 20,756 | $ 18,349 |
| Interest-bearing deposits in bank | 22,142 | 17,761 |
| Cash and cash equivalents | 42,898 | 36,110 |
| | | |
| Securities available-for-sale | 35,676 | 45,431 |
| Securities held-to-maturity | 42,851 | 25,280 |
| Restricted investments, at cost | 3,554 | 3,029 |
| Loans held for sale | 1,909 | 1,589 |
| Loans | 675,584 | 627,614 |
| Allowance for loan losses | (8,429) | (8,069) |
| Net loans | 667,155 | 619,545 |
| | | |
| OREO and repossessed assets | 495 | 1,603 |
| Bank-owned life insurance | 17,184 | 16,849 |
| Premises and equipment, net | 5,204 | 5,696 |
| Accrued interest receivable | 1,767 | 1,636 |
| Goodwill | 18,109 | 18,109 |
| Other intangible assets | 19 | 57 |
| Other assets | 5,448 | 6,262 |
| | | |
| TOTAL ASSETS | $ 842,269 | $ 781,196 |
| | | |
| LIABILITIES | | |
| Deposits: | | |
| Non-interest bearing | $ 151,958 | $ 140,459 |
| Interest bearing | 538,707 | 501,931 |
| Total Deposits | 690,665 | 642,390 |
| | | |
| Securities sold under agreements to repurchase | 21,303 | 23,290 |
| Accrued interest payable | 49 | 46 |
| Long-term debt | 26,500 | 16,000 |
| Other liabilities | 6,112 | 5,538 |
| | | |
| Total Liabilities | 744,629 | 687,264 |
| | | |
| SHAREHOLDERS' EQUITY | | |
| Preferred stock, no par value; 6,500,000 shares authorized; | | |
| Preferred stock, Series B, none issued or outstanding | -- | -- |
| Preferred stock, Series C, $1,000 liquidation preference per share; 12,000 shares authorized; 6,000 issued and outstanding at September 30, 2015, and December 31, 2014, respectively | 6,000 | 6,000 |
| Common stock, no par value; 25,000,000 shares authorized; | | |
| Issued – 8,202,266 and 8,167,296 at September 30, 2015 and December 31, 2014, respectively | | |
| Outstanding – 7,918,266 and 7,939,684 at September 30, 2015 and December 31, 2014, respectively | 72,830 | 72,527 |
| Retained earnings | 21,298 | 17,501 |
| Treasury stock, at cost; 284,000 shares and 227,612 shares at September 30, 2015 and December 31, 2014, respectively | (2,248) | (1,751) |
| Accumulated other comprehensive loss | (240) | (345) |
| Total Shareholders' Equity | 97,640 | 93,932 |
| | | |
| TOTAL LIABILITIES and SHAREHOLDERS' EQUITY | $ 842,269 | $ 781,196 |
| |
| TWO RIVER BANCORP |
| Selected Consolidated Financial Data (Unaudited) |
| | | | | | |
| Selected Consolidated Earnings Data | | | | | |
| (In thousands, except per share data) | | | | | |
| | Three Months Ended | Nine Months Ended |
| Selected Consolidated Earnings Data: | Sept. 30,
2015 | June 30,
2015 | Sept. 30,
2014 | Sept. 30,
2015 | Sept. 30,
2014 |
| Total Interest Income | $ 8,218 | $ 7,903 | $ 7,655 | $ 23,797 | $ 22,687 |
| Total Interest Expense | 973 | 967 | 851 | 2,844 | 2,588 |
| Net Interest Income | 7,245 | 6,936 | 6,804 | 20,953 | 20,099 |
| Provision for Loan Losses | 120 | 190 | -- | 400 | 521 |
| Net Interest Income after Provision for Loan Losses | 7,125 | 6,746 | 6,804 | 20,553 | 19,578 |
| Total Non-Interest Income | 836 | 941 | 712 | 2,553 | 2,196 |
| Total Non-Interest Expenses | 5,308 | 5,377 | 4,822 | 15,846 | 14,518 |
| Income before Income Taxes | 2,653 | 2,310 | 2,694 | 7,260 | 7,256 |
| Income Tax Expense | 961 | 849 | 1,006 | 2,664 | 2,698 |
| Net Income | 1,692 | 1,461 | 1,688 | 4,596 | 4,558 |
| Preferred Stock Dividends | (15) | (15) | (30) | (45) | (90) |
| Net Income Available to Common Shareholders | $ 1,677 | $ 1,446 | $ 1,658 | $ 4,551 | $ 4,468 |
| | | | | | |
| Per Common Share Data: | | | | | |
| Basic Earnings | $ 0.21 | $ 0.18 | $ 0.21 | $ 0.57 | $ 0.56 |
| Diluted Earnings | $ 0.21 | $ 0.18 | $ 0.20 | $ 0.56 | $ 0.55 |
| Book Value | $ 11.57 | $ 11.37 | $ 10.92 | $ 11.57 | $ 10.92 |
| Tangible Book Value (1) | $ 9.28 | $ 9.09 | $ 8.63 | $ 9.28 | $ 8.63 |
| Weighted Average Common Shares Outstanding (in thousands): | | | | | |
| Basic | 7,930 | 7,930 | 7,923 | 7,932 | 7,939 |
| Diluted | 8,130 | 8,142 | 8,105 | 8,130 | 8,116 |
| | | | | | |
| (1) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release. | | |
| | | | |
| Selected Period End Balances | | | |
| (In thousands) | | | |
| | | | |
| | Sept. 30,
2015 | Dec. 31,
2014 | Sept. 30,
2014 |
| Total Assets | $ 842,269 | $ 781,196 | $ 775,494 |
| Investment Securities and Restricted Stock | 82,081 | 73,740 | 74,751 |
| Total Loans | 675,584 | 627,614 | 615,296 |
| Allowance for Loan Losses | (8,429) | (8,069) | (8,301) |
| Goodwill and Other Intangible Assets | 18,128 | 18,166 | 18,185 |
| Total Deposits | 690,665 | 642,390 | 627,765 |
| Repurchase Agreements | 21,303 | 23,290 | 27,562 |
| Long-Term Debt | 26,500 | 16,000 | 16,000 |
| Shareholders' Equity | 97,640 | 93,932 | 98,637 |
| | | | | | |
| Asset Quality Data (by Quarter) | | | | | |
| (Dollars in thousands) | | | | | |
| | | | | | |
| | Sept. 30,
2015 | June 31,
2015 | March 31,
2015 | Dec. 30,
2014 | Sept. 30,
2014 |
| Nonaccrual loans | $ 3,680 | $ 4,930 | $ 4,450 | $ 6,237 | $ 6,919 |
| Loans past due over 90 days and still accruing | -- | -- | -- | -- | -- |
| OREO | 495 | 1,411 | 1,603 | 1,603 | 1,069 |
| Total Non-Performing Assets | 4,175 | 6,341 | 6,053 | 7,840 | 7,988 |
| | | | | | |
| Troubled Debt Restructured Loans: | | | | | |
| Performing | 11,290 | 17,239 | 15,383 | 16,284 | 17,258 |
| Non-Performing | 1,578 | 2,287 | 2,314 | 4,269 | 5,122 |
| | | | | | |
| Non-Performing Loans to Total Loans | 0.54% | 0.73% | 0.70% | 0.99% | 1.12% |
| Non-Performing Assets to Total Assets | 0.50% | 0.75% | 0.75% | 1.00% | 1.03% |
| Allowance as a % of Loans | 1.25% | 1.23% | 1.26% | 1.29% | 1.35% |
| | | | | | | | |
| Capital Ratios | | | | | | | |
| | | | | | | | |
| | September 30, 2015 | December 31, 2014 |
| | CET 1
Capital to
Risk
Weighted
Assets Ratio | Tier 1
Capital to
Average
Assets
Ratio | Tier 1
Capital to
Risk
Weighted
Assets
Ratio | Total
Capital to
Average
Assets
Ratio | Tier 1
Capital to
Average
Assets
Ratio | Tier 1
Capital to
Risk
Weighted
Assets
Ratio | Total
Capital to
Risk
Weighted
Assets
Ratio |
| Two River Bancorp | 10.15% | 9.55% | 10.97% | 12.13% | 9.95% | 11.36% | 12.57% |
| Two River Community Bank | 10.91% | 9.50% | 10.91% | 12.07% | 9.90% | 11.31% | 12.51% |
| "Well capitalized" institution (under prompt correction action regulations)* | 6.50% | 5.00% | 6.00% | 10.00% | 5.00% | 6.00% | 10.00% |
| | | | | | | | |
| *Applies to Bank only | | | | | | | |
Reconciliation of Non-GAAP Financial Measures
The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting policies in the United States (GAAP). These non-GAAP financial measures are "book value per common share," "tangible book value per common share," "return on average tangible assets," and "return on average tangible equity." This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Our management uses these non-GAAP measures in its analysis of our performance because it believes these measures are material and will be used as a measure of our performance by investors.
| (In thousands, except per share data) | | | | | | | |
| | | | | | | | |
| | As of and for the Three Months Ended | As of and for the
Nine Months Ended |
| | Sept. 30,
2015 | June 30,
2015 | March 31,
2015 | Dec. 31,
2014 | Sept. 30,
2014 | Sept. 30,
2015 | Sept. 30,
2014 |
| Total shareholders' equity | $ 97,640 | $ 96,255 | $ 95,179 | $ 93,932 | $ 98,637 | $ 97,640 | $ 98,637 |
| Less: preferred stock | (6,000) | (6,000) | (6,000) | (6,000) | (12,000) | (6,000) | (12,000) |
| | | | | | | | |
| Common shareholders' equity | $ 91,640 | $ 90,255 | $ 89,179 | $ 87,932 | $ 86,637 | $ 91,640 | $ 86,637 |
| Less: goodwill and other tangibles | (18,128) | (18,138) | (18,147) | (18,166) | (18,185) | (18,128) | (18,185) |
| | | | | | | | |
| Tangible common shareholders' equity | $ 73,512 | $ 72,117 | $ 71,032 | $ 69,766 | $ 68,542 | $ 73,512 | $ 68,452 |
| | | | | | | | |
| Common shares outstanding | 7,918 | 7,935 | 7,925 | 7,940 | 7,932 | 7,918 | 7,932 |
| Book value per common share | $ 11.57 | $ 11.37 | $ 11.25 | $ 11.07 | $ 10.92 | $ 11.57 | $ 10.92 |
| | | | | | | | |
| Book value per common share | $ 11.57 | $ 11.37 | $ 11.25 | $ 11.07 | $ 10.92 | $ 11.57 | $ 10.92 |
| Effect of intangible assets | (2.29) | (2.28) | (2.29) | (2.28) | (2.29) | (2.29) | (2.29) |
| Tangible book value per common share | $ 9.28 | $ 9.09 | $ 8.96 | $ 8.79 | $ 8.63 | $ 9.28 | $ 8.63 |
| | | | | | | | |
| Return on average assets | 0.79% | 0.71% | 0.74% | 0.74% | 0.87% | 0.75% | 0.80% |
| Effect of intangible assets | 0.01% | 0.02% | 0.02% | 0.02% | 0.02% | 0.01% | 0.02% |
| Return on average tangible assets | 0.80% | 0.73% | 0.76% | 0.76% | 0.89% | 0.76% | 0.82% |
| | | | | | | | |
| Return on average equity | 6.95% | 6.15% | 6.20% | 5.91% | 6.85% | 6.44% | 6.31% |
| Effect of average intangible assets | 1.60% | 1.44% | 1.47% | 1.35% | 1.57% | 1.50% | 1.47% |
| Return on average tangible equity | 8.55% | 7.59% | 7.67% | 7.26% | 8.42% | 7.94% | 7.78% |
CONTACT: Investor Contact:
Adam Prior, Senior Vice President
The Equity Group Inc.
Phone: (212) 836-9606
E-mail: aprior@equityny.com
Media Contact:
Adam Cadmus, Marketing Director
Phone: (732) 982-2167
Email: acadmus@tworiverbank.com