Exhibit 99.1
Talmer Bancorp, Inc. reports third quarter 2014 net income of $19.5 million, representing $0.26 of earnings per diluted average common share
Talmer Bancorp, Inc. declares cash dividend for common stock of $0.01 per share
TROY/November 4, 2014 — Talmer Bancorp, Inc. (NASDAQ: TLMR) (“Talmer”) today reported third quarter 2014 net income of $19.5 million, compared to $20.6 million for the second quarter of 2014 and $10.5 million for the third quarter of 2013. Earnings per diluted common share were $0.26 for the third quarter of 2014, compared to $0.27 for the second quarter of 2014 and $0.15 for the third quarter of 2013. In addition, the Board of Directors of Talmer today declared a cash dividend on its Class A common stock of $0.01 per share. The dividend will be paid on November 28, 2014, to our Class A common shareholders of record as of November 17, 2014.
Talmer Bancorp President and CEO David Provost commented, “The third quarter was a busy quarter for Talmer as we completed the sales of our Wisconsin and New Mexico branches, completed the consolidation of our four Las Vegas branches, and continued to execute on our plan of improving our overall operating efficiency. I am particularly pleased with our robust organic loan growth, which was driven in large part by commercial and industrial lending. While loan growth should moderate some in the fourth quarter, our pipeline remains strong and I believe that we will be able to continue our organic loan growth for the foreseeable future. In addition, we made key hires during the quarter to bolster our asset-based lending team, which is particularly well suited to be responsive to the growing commercial lending opportunities within our footprint and enhance our ability to drive earning asset and fee income growth. On the merger and acquisition front, the First of Huron acquisition we announced in August is on schedule to close in the first quarter of 2015, and we continue to be very active in looking at additional acquisition opportunities.”
Quarterly Results Summary
(Dollars in thousands, except per share data) |
| 3rd Qtr 2014 |
| 2nd Qtr 2014 |
| 3rd Qtr 2013 |
| |||
Earnings Summary |
|
|
|
|
|
|
| |||
Net interest income |
| $ | 52,196 |
| $ | 52,531 |
| $ | 44,001 |
|
Total provision (benefit) for loan losses |
| 1,509 |
| (4,102 | ) | 2,125 |
| |||
Noninterest income |
| 29,995 |
| 13,799 |
| 17,984 |
| |||
Noninterest expense |
| 51,263 |
| 54,072 |
| 53,373 |
| |||
Income before income taxes |
| 29,419 |
| 16,360 |
| 6,487 |
| |||
Income tax provision (benefit) |
| 9,904 |
| (4,246 | ) | (4,057 | ) | |||
Net income |
| 19,515 |
| 20,606 |
| 10,544 |
| |||
|
|
|
|
|
|
|
| |||
Per Share Data |
|
|
|
|
|
|
| |||
Diluted earnings per common share |
| $ | 0.26 |
| $ | 0.27 |
| $ | 0.15 |
|
Tangible book value per share (1) |
| 10.40 |
| 10.11 |
| 8.95 |
| |||
Average diluted common shares (in thousands) |
| 75,752 |
| 75,659 |
| 69,853 |
| |||
|
|
|
|
|
|
|
| |||
Performance and Capital Ratios |
|
|
|
|
|
|
| |||
Return on average assets (annualized) |
| 1.36 | % | 1.51 | % | 0.90 | % | |||
Return on average equity (annualized) |
| 10.56 |
| 11.61 |
| 7.37 |
| |||
Net interest margin (fully taxable equivalent) (annualized) (2) |
| 4.04 |
| 4.35 |
| 4.11 |
| |||
Tangible average equity to tangible average assets (1) |
| 12.64 |
| 12.79 |
| 11.90 |
| |||
Tier 1 leverage ratio (3) |
| 11.45 |
| 11.71 |
| 11.78 |
| |||
Tier 1 risk-based capital (3) |
| 15.56 |
| 16.16 |
| 17.83 |
| |||
Total risk-based capital (3) |
| 16.76 |
| 17.31 |
| 18.66 |
| |||
(1) See section entitled “Reconciliation of Non-GAAP Financial Measures.”
(2) Presented on a tax equivalented basis using a 35% tax rate for all periods presented.
(3) Third quarter 2014 is estimated.
In addition to the quarterly results presented above, first quarter 2014 has been revised to reflect the impact to the financial statements from adjustments to the acquisition date fair value of deferred income tax benefits in the Talmer West Bank acquisition within the measurement period. These adjustments increased first quarter net income and period end equity by $1.8 million, compared to previously reported levels.
Third Quarter 2014 Compared to Second Quarter 2014
· Net income was $19.5 million, or $0.26 per diluted average common share, in the third quarter of 2014, compared to $20.6 million, or $0.27 per diluted average common share, for the second quarter of 2014. Significant items in the third quarter included $14.4 million in gain on sales of branches, $1.4 million of various operating expenses associated with acquisition and integration activities, and $176 thousand detriment to earnings due to a fair value adjustment to our loan servicing rights (compared to a $4.2 million detriment in the second quarter). Also, negatively impacting earnings in the third quarter was a significant increase in provision expense on uncovered loans as a result of strong loan growth and the accounting impact of cash flow re-estimations for uncovered acquired loans.
· Net total loans increased during the third quarter of 2014 by $281.1 million. During the third quarter of 2014, Talmer Bank and Trust’s net total loans grew by $304.1 million as a result of $352.6 million of net uncovered loan growth and $48.5 million of net covered loan run-off (loans covered by loss
share agreements with the FDIC). Talmer West Bank experienced net loan run-off of $23.0 million in the third quarter of 2014.
· Total deposits increased $189.1 million, to $4.5 billion as of September 30, 2014, compared to June 30, 2014. Deposit growth in the third quarter of 2014 more than offset the $389.9 million of deposits sold in conjunction with our branch office sales in Wisconsin and New Mexico and the continued, anticipated decline in higher-cost deposits obtained from our acquisition of Talmer West Bank. Total deposit growth excluding the Wisconsin and New Mexico branch sales included other brokered funds of $349.7 million, time deposits of $144.3 million, interest-bearing demand deposits of $63.3 million and noninterest-bearing demand deposits of $35.5 million, partially offset by a $14.3 million decline in money market and savings deposits.
· Net interest income decreased slightly to $52.2 million in the third quarter of 2014, compared to $52.5 million in the second quarter of 2014. The $335 thousand decrease in net interest income was primarily the result of increases of $1.2 million in negative accretion of the FDIC indemnification asset and $564 thousand in interest expense, partially offset by increases of $1.2 million in interest and fees on loans and $349 thousand in interest earned on our securities portfolio. Our net interest margin declined 31 basis points to 4.04% in the third quarter of 2014, compared to 4.35% in the second quarter of 2014.
· Noninterest income increased by $16.2 million to $30.0 million in the third quarter of 2014, compared to the second quarter of 2014. The increase is primarily the result of $14.4 million in gain on sales of branches from the sales of our Wisconsin branches and our single branch located in New Mexico in the third quarter of 2014 and an increase in mortgage banking and other loan fees of $3.2 million, partially offset by a decline in net gain on sales of loans of $1.6 million. The increase in mortgage banking and other loan fees was primarily due to the change in the fair value of loan servicing rights, which was a detriment to earnings of $176 thousand during the third quarter of 2014, compared to a detriment of $4.2 million during the second quarter of 2014 due mainly to movements in interest rates during those periods.
· Noninterest expenses decreased $2.8 million, or 5.2%, to $51.3 million in the third quarter of 2014 compared to the second quarter of 2014. The decline in noninterest expenses primarily reflects our continued efforts to improve operating efficiencies as we move to fully integrate and rationalize the operations of our acquired banks.
Income Statement
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2014 was $52.2 million, compared to $52.5 million in the prior quarter. The $335 thousand decrease in net interest income in the third quarter was primarily the result of increases of $1.2 million in negative accretion of the FDIC indemnification asset and $564 thousand in interest expense, partially offset by increases of $1.2 million in interest and fees on loans and $349 thousand in interest earned on our securities portfolio.
Our net interest margin was 4.04% in the third quarter of 2014, a decrease of 31 basis points from 4.35% in the second quarter of 2014. The decline in our net interest margin in the third quarter was due to a combination of several factors. The largest factor affecting the change in our net interest margin was the increase in negative accretion of the FDIC indemnification asset as we continue to experience increases in cash flow expectations on covered loans as a result of our quarterly re-estimations and because we are nearing the end of our loss share agreements with the FDIC related to non-single family loans. Another factor affecting our net interest margin was the run-off of certain purchased credit impaired loans that had significantly benefitted the second quarter of 2014 net interest margin.
Our net interest margin benefits from discount accretion on our purchased credit impaired loan portfolio, a component of the accretable yield. The accretable yield for purchased credit impaired loans includes both the expected coupon of the loan and the discount accretion, and is recognized as interest income over the expected
remaining life of loans. For the third and second quarters of 2014, the yield on uncovered loans was 4.97% and 5.10%, respectively, while the yield generated using only the expected coupon would have been 4.51% and 4.45%, respectively. For the third and second quarters of 2014, the yield on covered loans was 12.36% and 13.09%, respectively, while the yield generated using only the expected coupon would have been 5.93% and 6.31%, respectively. The difference between the actual yield earned on total loans and the yield generated based on the contractual coupon (not including any interest income for loans in nonaccrual status) represents excess accretable yield. Our net interest margin is also adversely impacted by the negative yield on the FDIC indemnification asset. Because our quarterly cash flow re-estimations have continuously resulted in improvements in the overall expected cash flows on covered loans, our expected payment from the FDIC under our loss share agreements has declined, resulting in a negative yield on the FDIC indemnification asset. This negative yield on the FDIC indemnification asset partially offsets the benefits provided by the excess accretable yield. This negative yield was 26.61% for the third quarter of 2014 and 19.11% for the second quarter of 2014. The combination of the excess accretable yield on both covered and uncovered loans and negative yield on the FDIC indemnification asset benefitted net interest margin by 35 basis points and 63 basis points in the third and second quarters or 2014, respectively. Therefore, excluding the benefit of excess accretable yield and negative yield on the FDIC indemnification asset, our margin in the third quarter was 3.69% compared to 3.72% in second quarter.
Noninterest Income
Noninterest income increased $16.2 million to $30.0 million in the third quarter of 2014, compared to $13.8 million for the second quarter of 2014. The increase is primarily the result of $14.4 million in gain on sales of branches recognized in the third quarter of 2014 and an increase in mortgage banking and other loan fees of $3.2 million, partially offset by a decline in net gain on sales of loans of $1.6 million. The $14.4 million net gain on sales of branches includes both the $12.8 million net gain on the sale of our Wisconsin branches and a $1.6 million gain on the sale of our single Albuquerque, New Mexico branch. The increase in mortgage banking and other loan fees was primarily due to the change in the fair value of loan servicing rights, which was a detriment to earnings of $176 thousand during the third quarter of 2014, compared to a detriment of $4.2 million during the second quarter of 2014 due mainly to movements in interest rates during those periods. Loan servicing rights totaled $74.4 million as of September 30, 2014, compared to $74.1 million as of June 30, 2014.
Noninterest Expenses
Noninterest expenses in the third quarter of 2014 declined $2.8 million to $51.3 million, compared to $54.1 million in the second quarter of 2014. The decline in noninterest expenses primarily reflects decreases in FDIC loss sharing expense, salary and employee benefits, data processing fees, marketing expense, and other expenses (included within noninterest expense). The decline in noninterest expenses primarily reflects our continued efforts to improve operating efficiencies as we move to fully integrate and rationalize the operations of our acquired banks.
The third quarter of 2014 efficiency ratio, a measure of noninterest expense as a percent of net interest income and noninterest income, was 62.37%, compared to 81.52% in the second quarter of 2014. Exclusive of the gain on sales of branches of $14.4 million, FDIC loss sharing income which was a detriment of $2.4 million, the fair value adjustment to our loan servicing rights of $176 thousand, and transaction and integration related costs of $1.4 million, the third quarter of 2014 core efficiency ratio was 70.81%. We remain confident with our progress in reaching our previously stated objective of a 70% core efficiency ratio by the fourth quarter of 2014.
Credit Quality
We recorded our acquired loans at fair value at the date of acquisition with no separate allowance for loan losses, in accordance with United States generally accepted accounting principles. At September 30, 2014, the allowance for loan losses on uncovered loans was $29.9 million, or 0.82% of total uncovered loans, compared to $24.4 million, or 0.74% of total uncovered loans, at June 30, 2014. The increase in allowance for loan losses on uncovered loans for
the quarter was primarily due to the impact of organic loan growth and impairment resulting from our quarterly re-estimation of cash flows for our uncovered purchased credit impaired loans. At September 30, 2014, uncovered nonperforming loans were $43.3 million, compared to $26.0 million at June 30, 2014. During the third quarter of 2014 a set of interrelated loans totaling $12.0 million were moved to nonaccrual status due to doubtful collection of full principal and interest.
At September 30, 2014, the allowance for loan losses on covered loans was $25.8 million, or 6.38% of total covered loans, compared to $32.7 million, or 7.13% of total covered loans at June 30, 2014. The decrease in allowance for loan losses on covered loans primarily reflects the relief of allowance resulting from payments received on loans not previously anticipated and the release of previously recorded impairment as a result of improvements of expected cash flows in our quarterly re-estimation for our covered purchased credit impaired loans.
During the third quarter of 2014, we completed re-estimations of cash flow expectations for purchased credit impaired loans acquired in each of our acquisitions. For the re-estimations, loans with changes in cash flow expectations resulted in net additional loan loss provisions of $2.2 million ($3.5 million uncovered and a benefit of $1.3 million covered). Provision benefits related to covered loans are partially offset by a write-off in the FDIC indemnification asset. The re-estimations also resulted in a $32.0 million improvement in the gross cash flow expectations for purchased credit impaired loans, which will be recognized prospectively as an increase in the accretable yield. The improvement in cash flows on covered loans will be partially offset by a continued reduction in the FDIC indemnification asset, which will impact future earnings through negative accretion. For loans with cash flow expectation improvements, any previously recorded impairment is reversed with any additional increase in cash flows recognized prospectively as an increase in the accretable yield.
All of our acquired loan portfolios are continuing to perform significantly better than initially anticipated. We believe improvements in performance are primarily due to improvements in the economy and the efforts made by our Special Assets team that manages our acquired loan portfolios. Similar to the third quarter 2014 re-estimations, the prior re-estimations of cash flows have indicated better overall expected performance than originally anticipated at acquisition.
Balance Sheet and Capital Management
Total assets increased $134.7 million to $5.7 billion at September 30, 2014 compared to $5.6 billion at June 30, 2014. The primary drivers of the increase in assets in the quarter ended September 30, 2014 were increases in net total loans of $281.1 million, partially offset by decreases of $103.9 million in cash and cash equivalents and $20.3 million in the FDIC indemnification asset. The decrease in the FDIC indemnification asset primarily reflects the impact of $8.0 million of claims filed for losses on covered loans, $6.7 million of indemnification asset negative accretion and $5.5 million of indemnification write-off due to settlements and results of our quarterly re-estimations of cash flow expectations for covered purchased credit impaired loans.
Net total loans at September 30, 2014 increased $281.1 million to $4.0 billion, compared to $3.7 billion at June 30, 2014. During the third quarter of 2014, Talmer Bank and Trust’s net total loans grew by $304.1 million resulting from $352.6 million of net uncovered loan growth, partially offset by $48.5 million of net covered loan run-off (loans covered by loss share agreements with the FDIC). Talmer West Bank experienced net loan run-off of $23.0 million in the third quarter of 2014. We continue to be focused on sourcing quality loan growth to overcome the run-off of higher-yielding acquired loans. Our covered loan portfolio has now declined to $403.8 million, or 10.0%, of total loans, which are covered by loss sharing agreement entered into with the FDIC. Acquired loans are reported on the balance sheet at the contractual balance, net of remaining discount resulting from acquisition accounting and charge-offs taken since acquisition.
Total liabilities were $5.0 billion at September 30, 2014 compared to $4.9 billion at June 30, 2014. The $116.0 million increase in liabilities in the quarter ended September 30, 2014 was primarily due to an increase in total deposits of $189.1 million, partially offset by a decrease in short-term borrowings of $88.3 million. Deposit growth in the third quarter of 2014 more than offset the $389.9 million of deposits sold in conjunction with our branch office sales in Wisconsin and New Mexico and the continued, anticipated decline in deposits obtained from our acquisition of Talmer West Bank.
Total deposit growth excluding the Wisconsin and New Mexico branch sales primarily included other brokered funds of $349.7 million, time deposits of $144.3 million, interest-bearing demand deposits of $63.3 million and noninterest-bearing demand deposits of $35.5 million, partially offset by a $14.3 million decline in money market and savings deposits. The decrease in short-term borrowings primarily reflects decreases in outstanding securities sold under agreements to repurchase of $62.2 million and short-term Federal Home Loan Bank borrowings of $20.0 million.
Total shareholders’ equity increased $18.7 million, or 2.6%, to $746.7 million at September 30, 2014, compared to $727.9 million as of June 30, 2014. The increase in shareholders’ equity primarily reflects our third quarter 2014 net income of $19.5 million, partially offset by $704 thousand of dividends paid in the third quarter of 2014.
Key Performance Goals
Our near-term focus continues to be on driving quality loan growth and realizing significant operating synergies as we move toward fully integrating our acquired banks. This includes the consolidation of back office processes, personnel and facilities and the wind-down of third party expenses associated with meeting regulatory compliance and system enhancements. Recent increases in the level of merger activity in our market area offer the potential for additional opportunities to further leverage our capital position; however, we strive to remain disciplined in our evaluation of the risks and challenges in each and every deal. The effective integration of operations and culture from previous acquisitions and the ongoing investment in core growth provide momentum in our pursuit of delivering a sustainable 1%+ core return on assets.
Conference Call and Webcast
Talmer Bancorp, Inc. will host a live conference webcast to review third quarter 2014 financial results at 10:00 a.m. ET on Wednesday, November 5, 2014. The webcast may be accessed through Talmer’s Investor Relations page at www.talmerbank.com where a link will be provided. Interested parties may also access the conference call by calling (888) 317-6003 (event ID No. 2499247) or internationally at (412) 317-6061. A replay of the webcast will be available for approximately 90 days after the event on Talmer’s Investor Relations page at www.talmerbank.com.
About Talmer Bancorp, Inc.
Headquartered in Troy, Michigan, Talmer Bancorp, Inc. is the holding company for Talmer Bank and Trust and Talmer West Bank. These banks, operating through branches and lending offices in Michigan, Ohio, Indiana, Nevada and Illinois, offer a full suite of commercial and retail banking, mortgage banking, wealth management and trust services to small and medium-sized businesses and individuals.
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Talmer Bancorp Inc.’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-looking Statements
Some of the statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “intend,” “plan,” “seek,” “believe,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements, include, among others, statements related to our future expectations, including all statements under the heading entitled “Key Performance Goals,” statements regarding expectations related to growth opportunities in our markets, including statements about growing commercial lending opportunities, our ability to continue strong organic loan growth, our ability to drive strong earning asset and fee income growth, statements regarding our ability to achieve a 70% core efficiency ratio by the fourth quarter of 2014, statements regarding our proposed acquisition of First of Huron Corporation, including the expected closing of the acquisition in the first quarter of 2015, and our strategic plan. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to risks, uncertainties and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, our acquisition transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes, excessive loan losses, and, with respect to the proposed acquisition, the inability to obtain the requisite regulatory and shareholder approvals and meet other closing terms and conditions, as well as additional risks and uncertainties contained in the “Risk Factors” and the forward-looking statement disclosure contained in our Annual Report on Form 10-K for the most recently ended fiscal year, any of which could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. All forward-looking statements speak only as of the date on which it is made. We undertake no obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
Media Contact: |
| Investor Relations Contact: |
|
|
|
Shellie Maitre |
| Bradley Adams |
|
|
|
(248) 498-2858 |
| (248) 498-2862 |
Talmer Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited )
|
| September 30, |
| June 30, |
| December 31, |
| September 30, |
| ||||
(Dollars in thousands, except per share data) |
| 2014 |
| 2014 (1) |
| 2013 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| $ | 91,214 |
| $ | 107,292 |
| $ | 97,167 |
| $ | 105,439 |
|
Interest-bearing deposits with other banks |
| 121,952 |
| 218,309 |
| 206,160 |
| 264,554 |
| ||||
Federal funds sold and other short-term investments |
| 85,500 |
| 77,000 |
| 72,029 |
| 123,000 |
| ||||
Total cash and cash equivalents |
| 298,666 |
| 402,601 |
| 375,356 |
| 492,993 |
| ||||
Securities available-for-sale |
| 734,489 |
| 731,700 |
| 620,083 |
| 652,739 |
| ||||
Federal Home Loan Bank stock |
| 17,426 |
| 16,541 |
| 16,303 |
| 16,303 |
| ||||
Loans held for sale, (includes $122.6 million, $113.8 million, $85.3 million and $227.0 million, respectively, measured at fair value) |
| 122,599 |
| 136,089 |
| 85,252 |
| 226,958 |
| ||||
Loans: |
|
|
|
|
|
|
|
|
| ||||
Residential real estate (includes $17.9 million, $18.5 million, $16.3 million and $0, respectively, measured at fair value) |
| 1,430,939 |
| 1,362,869 |
| 1,085,453 |
| 998,264 |
| ||||
Commercial real estate |
| 1,213,361 |
| 1,131,348 |
| 755,839 |
| 739,425 |
| ||||
Commercial and industrial |
| 790,867 |
| 647,090 |
| 446,644 |
| 384,265 |
| ||||
Real estate construction (includes $1.4 million measured at fair value at December 31, 2013) |
| 102,920 |
| 112,866 |
| 176,226 |
| 190,312 |
| ||||
Consumer |
| 93,246 |
| 42,034 |
| 9,754 |
| 9,927 |
| ||||
Total loans, excluding covered loans |
| 3,631,333 |
| 3,296,207 |
| 2,473,916 |
| 2,322,193 |
| ||||
Less: Allowance for loan losses - uncovered |
| (29,892 | ) | (24,360 | ) | (17,746 | ) | (15,620 | ) | ||||
Net loans - excluding covered loans |
| 3,601,441 |
| 3,271,847 |
| 2,456,170 |
| 2,306,573 |
| ||||
Covered loans |
| 403,792 |
| 459,280 |
| 530,068 |
| 558,534 |
| ||||
Less: Allowance for loan losses - covered |
| (25,768 | ) | (32,743 | ) | (40,381 | ) | (42,573 | ) | ||||
Net loans - covered |
| 378,024 |
| 426,537 |
| 489,687 |
| 515,961 |
| ||||
Net total loans |
| 3,979,465 |
| 3,698,384 |
| 2,945,857 |
| 2,822,534 |
| ||||
Premises and equipment |
| 49,462 |
| 56,642 |
| 51,001 |
| 54,065 |
| ||||
FDIC indemnification asset |
| 82,441 |
| 102,694 |
| 131,861 |
| 148,325 |
| ||||
Other real estate owned |
| 44,940 |
| 52,273 |
| 29,955 |
| 33,373 |
| ||||
Loan servicing rights |
| 74,380 |
| 74,104 |
| 78,603 |
| 71,751 |
| ||||
Core deposit intangible |
| 13,696 |
| 15,378 |
| 13,205 |
| 13,868 |
| ||||
FDIC receivable |
| 12,873 |
| 7,198 |
| 7,783 |
| 13,530 |
| ||||
Company-owned life insurance |
| 96,605 |
| 95,580 |
| 39,500 |
| 39,163 |
| ||||
Income tax benefit |
| 181,318 |
| 189,667 |
| 126,200 |
| 118,808 |
| ||||
Other assets |
| 35,810 |
| 30,642 |
| 26,402 |
| 37,535 |
| ||||
Total assets |
| $ | 5,744,170 |
| $ | 5,609,493 |
| $ | 4,547,361 |
| $ | 4,741,945 |
|
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Deposits: |
|
|
|
|
|
|
|
|
| ||||
Noninterest-bearing demand deposits |
| $ | 908,343 |
| $ | 958,278 |
| $ | 779,379 |
| $ | 822,984 |
|
Interest-bearing demand deposits |
| 673,336 |
| 697,031 |
| 598,281 |
| 581,941 |
| ||||
Money market and savings deposits |
| 1,173,697 |
| 1,330,036 |
| 1,215,864 |
| 1,215,290 |
| ||||
Time deposits |
| 1,256,981 |
| 1,187,661 |
| 927,313 |
| 962,499 |
| ||||
Other brokered funds |
| 473,240 |
| 123,528 |
| 80,000 |
| 80,000 |
| ||||
Total deposits |
| 4,485,597 |
| 4,296,534 |
| 3,600,837 |
| 3,662,714 |
| ||||
FDIC clawback liability |
| 25,723 |
| 26,309 |
| 24,887 |
| 24,299 |
| ||||
FDIC warrants payable |
| 4,563 |
| 4,493 |
| 4,118 |
| 3,936 |
| ||||
Short-term borrowings |
| 150,573 |
| 238,826 |
| 71,876 |
| 139,965 |
| ||||
Long-term debt |
| 285,009 |
| 266,407 |
| 199,037 |
| 266,799 |
| ||||
Other liabilities |
| 46,053 |
| 48,979 |
| 29,591 |
| 37,401 |
| ||||
Total liabilities |
| 4,997,518 |
| 4,881,548 |
| 3,930,346 |
| 4,135,114 |
| ||||
Shareholders’ equity |
|
|
|
|
|
|
|
|
| ||||
Preferred stock - $1.00 par value |
|
|
|
|
|
|
|
|
| ||||
Authorized - 20,000,000 shares at 9/30/2014, 6/30/2014, 12/31/2013 and 9/30/2013 |
|
|
|
|
|
|
|
|
| ||||
Issued and outstanding - 0 shares at 9/30/2014, 6/30/2014, 12/31/2013 and 9/30/2013 |
| — |
| — |
| — |
| — |
| ||||
Common stock: |
|
|
|
|
|
|
|
|
| ||||
Class A Voting Common Stock - $1.00 par value |
|
|
|
|
|
|
|
|
| ||||
Authorized - 198,000,000 shares at 9/30/2014, 6/30/2014, 12/31/2013 and 9/30/2013 |
|
|
|
|
|
|
|
|
| ||||
Issued and outstanding - 70,503,920 shares at 9/30/2014, 70,451,057 shares at 6/30/2014, 66,234,397 shares at 12/31/2013 and 66,229,397 at 9/30/2013 |
| 70,504 |
| 70,451 |
| 66,234 |
| 66,229 |
| ||||
Class B Non-Voting Common Stock - $1.00 par value |
|
|
|
|
|
|
|
|
| ||||
Authorized - 2,000,000 shares at 9/30/2014, 6/30/2014, 12/21/2013 and 9/30/2013 |
|
|
|
|
|
|
|
|
| ||||
Issued and outstanding - 0 shares at 9/30/2014, 6/30/2014, 12/21/2013 and 9/30/2013 |
| — |
| — |
| — |
| — |
| ||||
Additional paid-in-capital |
| 404,068 |
| 404,079 |
| 366,428 |
| 366,171 |
| ||||
Retained earnings |
| 269,993 |
| 251,182 |
| 192,349 |
| 179,796 |
| ||||
Accumulated other comprehensive income (loss), net of tax |
| 2,087 |
| 2,233 |
| (7,996 | ) | (5,365 | ) | ||||
Total shareholders’ equity |
| 746,652 |
| 727,945 |
| 617,015 |
| 606,831 |
| ||||
Total liabilities and shareholders’ equity |
| $ | 5,744,170 |
| $ | 5,609,493 |
| $ | 4,547,361 |
| $ | 4,741,945 |
|
(1) First quarter 2014 information has been revised to reflect the impact to the financial statements from adjustments to the acquisition date fair value of deferred income tax benefits in the Talmer West Bank acquisition within the measurement period. These adjustments increased first quarter 2014 net income and period end equity by $1.8 million compared to previously reported levels.
Talmer Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
|
| Three months ended September 30, |
| Nine months ended September 30, |
| ||||||||
(Dollars in thousands, except per share data) |
| 2014 |
| 2013 |
| 2014 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest income |
|
|
|
|
|
|
|
|
| ||||
Interest and fees on loans |
| $ | 58,108 |
| $ | 49,475 |
| $ | 168,446 |
| $ | 149,503 |
|
Interest on investments |
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 2,345 |
| 1,751 |
| 6,421 |
| 4,217 |
| ||||
Tax-exempt |
| 1,341 |
| 1,132 |
| 4,432 |
| 3,132 |
| ||||
Total interest on securities |
| 3,686 |
| 2,883 |
| 10,853 |
| 7,349 |
| ||||
Interest on interest earning cash balances |
| 158 |
| 97 |
| 546 |
| 588 |
| ||||
Interest on federal funds and other short term investments |
| 186 |
| 279 |
| 641 |
| 726 |
| ||||
Dividends on FHLB stock |
| 120 |
| 167 |
| 465 |
| 712 |
| ||||
FDIC indemnification asset |
| (6,663 | ) | (6,032 | ) | (18,887 | ) | (21,088 | ) | ||||
Total interest income |
| 55,595 |
| 46,869 |
| 162,064 |
| 137,790 |
| ||||
Interest Expense |
|
|
|
|
|
|
|
|
| ||||
Interest-bearing demand deposits |
| 190 |
| 174 |
| 630 |
| 500 |
| ||||
Money market and savings deposits |
| 487 |
| 447 |
| 1,473 |
| 1,459 |
| ||||
Time deposits |
| 1,611 |
| 1,408 |
| 4,534 |
| 4,614 |
| ||||
Other brokered funds |
| 288 |
| 38 |
| 352 |
| 110 |
| ||||
Interest on short-term borrowings |
| 122 |
| 26 |
| 330 |
| 81 |
| ||||
Interest on long-term debt |
| 701 |
| 775 |
| 1,902 |
| 2,313 |
| ||||
Total interest expense |
| 3,399 |
| 2,868 |
| 9,221 |
| 9,077 |
| ||||
Net interest income |
| 52,196 |
| 44,001 |
| 152,843 |
| 128,713 |
| ||||
Provision for loan losses - uncovered |
| 7,784 |
| 2,852 |
| 17,427 |
| 8,951 |
| ||||
Benefit for loan losses - covered |
| (6,275 | ) | (727 | ) | (16,094 | ) | (7,103 | ) | ||||
Net interest income after provision for loan losses |
| 50,687 |
| 41,876 |
| 151,510 |
| 126,865 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Noninterest income |
|
|
|
|
|
|
|
|
| ||||
Deposit fee income |
| 3,022 |
| 3,547 |
| 9,459 |
| 12,707 |
| ||||
Mortgage banking and other loan fees |
| 2,065 |
| 7,173 |
| 2,040 |
| 23,187 |
| ||||
Net gain on sales of loans |
| 4,083 |
| 4,835 |
| 12,796 |
| 37,789 |
| ||||
Bargain purchase gain |
| — |
| — |
| 41,977 |
| 71,702 |
| ||||
FDIC loss sharing income |
| (2,420 | ) | (4,846 | ) | (5,967 | ) | (7,059 | ) | ||||
Accelerated discount on acquired loans |
| 3,663 |
| 4,345 |
| 14,455 |
| 10,558 |
| ||||
Net gain (loss) on sales of securities |
| 244 |
| — |
| (2,066 | ) | 100 |
| ||||
Gains on sales of branches |
| 14,410 |
| — |
| 14,410 |
| — |
| ||||
Other income |
| 4,928 |
| 2,930 |
| 14,518 |
| 8,597 |
| ||||
Total noninterest income |
| 29,995 |
| 17,984 |
| 101,622 |
| 157,581 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Noninterest expenses |
|
|
|
|
|
|
|
|
| ||||
Salary and employee benefits |
| 29,752 |
| 29,766 |
| 95,872 |
| 116,772 |
| ||||
Occupancy and equipment expense |
| 8,047 |
| 6,582 |
| 25,132 |
| 20,409 |
| ||||
Data processing fees |
| 1,610 |
| 3,539 |
| 5,610 |
| 7,099 |
| ||||
Professional service fees |
| 2,985 |
| 4,418 |
| 9,825 |
| 12,666 |
| ||||
FDIC loss sharing expense |
| 245 |
| 106 |
| 1,752 |
| 1,524 |
| ||||
Bank acquisition and due diligence fees |
| 239 |
| 171 |
| 2,218 |
| 7,874 |
| ||||
Marketing expense |
| 1,005 |
| 634 |
| 3,703 |
| 2,825 |
| ||||
Other employee expense |
| 663 |
| 943 |
| 2,163 |
| 2,648 |
| ||||
Insurance expense |
| 1,364 |
| 1,911 |
| 4,016 |
| 8,123 |
| ||||
Other expense |
| 5,353 |
| 5,303 |
| 20,491 |
| 17,865 |
| ||||
Total noninterest expenses |
| 51,263 |
| 53,373 |
| 170,782 |
| 197,805 |
| ||||
Income before income taxes |
| 29,419 |
| 6,487 |
| 82,350 |
| 86,641 |
| ||||
Income tax provision (benefit) |
| 9,904 |
| (4,057 | ) | 4,002 |
| 636 |
| ||||
Net income |
| $ | 19,515 |
| $ | 10,544 |
| $ | 78,348 |
| $ | 86,005 |
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | 0.28 |
| $ | 0.16 |
| $ | 1.13 |
| $ | 1.30 |
|
Diluted |
| $ | 0.26 |
| $ | 0.15 |
| $ | 1.04 |
| $ | 1.23 |
|
Average common shares outstanding - basic |
| 70,092 |
| 66,229 |
| 69,414 |
| 66,229 |
| ||||
Average common shares outstanding - diluted |
| 75,752 |
| 69,853 |
| 74,948 |
| 69,792 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total comprehensive income |
| 19,369 |
| 10,737 |
| 88,431 |
| 76,722 |
| ||||
Talmer Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share data) |
| 3rd |
| 2nd |
| 1st Quarter |
| 4th |
| 3rd |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest income |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and fees on loans |
| $ | 58,108 |
| $ | 56,925 |
| $ | 53,413 |
| $ | 45,354 |
| $ | 49,475 |
|
Interest on investments |
|
|
|
|
|
|
|
|
|
|
| |||||
Taxable |
| 2,345 |
| 2,198 |
| 1,878 |
| 1,880 |
| 1,751 |
| |||||
Tax-exempt |
| 1,341 |
| 1,139 |
| 1,952 |
| 1,098 |
| 1,132 |
| |||||
Total interest on securities |
| 3,686 |
| 3,337 |
| 3,830 |
| 2,978 |
| 2,883 |
| |||||
Interest on interest earning cash balances |
| 158 |
| 172 |
| 216 |
| 188 |
| 97 |
| |||||
Interest on federal funds and other short-term investments |
| 186 |
| 278 |
| 177 |
| 204 |
| 279 |
| |||||
Dividends on FHLB stock |
| 120 |
| 160 |
| 185 |
| 160 |
| 167 |
| |||||
FDIC indemnification asset |
| (6,663 | ) | (5,506 | ) | (6,718 | ) | (6,952 | ) | (6,032 | ) | |||||
Total interest income |
| 55,595 |
| 55,366 |
| 51,103 |
| 41,932 |
| 46,869 |
| |||||
Interest Expense |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest-bearing demand deposits |
| 190 |
| 216 |
| 224 |
| 173 |
| 174 |
| |||||
Money market and savings deposits |
| 487 |
| 492 |
| 494 |
| 430 |
| 447 |
| |||||
Time deposits |
| 1,611 |
| 1,432 |
| 1,491 |
| 1,250 |
| 1,408 |
| |||||
Other brokered funds |
| 288 |
| 35 |
| 29 |
| 32 |
| 38 |
| |||||
Interest on short-term borrowings |
| 122 |
| 33 |
| 175 |
| 24 |
| 26 |
| |||||
Interest on long-term debt |
| 701 |
| 627 |
| 574 |
| 739 |
| 775 |
| |||||
Total interest expense |
| 3,399 |
| 2,835 |
| 2,987 |
| 2,648 |
| 2,868 |
| |||||
Net interest income |
| 52,196 |
| 52,531 |
| 48,116 |
| 39,284 |
| 44,001 |
| |||||
Provision for loan losses - uncovered |
| 7,784 |
| 3,219 |
| 6,424 |
| 6,569 |
| 2,852 |
| |||||
Benefit for loan losses - covered |
| (6,275 | ) | (7,321 | ) | (2,498 | ) | (3,319 | ) | (727 | ) | |||||
Net interest income after provision for loan losses |
| 50,687 |
| 56,633 |
| 44,190 |
| 36,034 |
| 41,876 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|
| |||||
Deposit fee income |
| 3,022 |
| 3,163 |
| 3,274 |
| 3,179 |
| 3,547 |
| |||||
Mortgage banking and other loan fees |
| 2,065 |
| (1,122 | ) | 1,097 |
| 7,666 |
| 7,173 |
| |||||
Net gain on sales of loans |
| 4,083 |
| 5,681 |
| 3,032 |
| 3,423 |
| 4,835 |
| |||||
Bargain purchase gain |
| — |
| — |
| 41,977 |
| — |
| — |
| |||||
FDIC loss sharing income |
| (2,420 | ) | (3,434 | ) | (113 | ) | (3,167 | ) | (4,846 | ) | |||||
Accelerated discount on acquired loans |
| 3,663 |
| 4,326 |
| 6,466 |
| 6,596 |
| 4,345 |
| |||||
Net gain (loss) on sales of securities |
| 244 |
| — |
| (2,310 | ) | 292 |
| — |
| |||||
Gain on sales of branches |
| 14,410 |
| — |
| — |
| — |
| — |
| |||||
Other income |
| 4,928 |
| 5,185 |
| 4,405 |
| 5,568 |
| 2,930 |
| |||||
Total noninterest income |
| 29,995 |
| 13,799 |
| 57,828 |
| 23,557 |
| 17,984 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noninterest expenses |
|
|
|
|
|
|
|
|
|
|
| |||||
Salary and employee benefits |
| 29,752 |
| 30,391 |
| 35,729 |
| 29,837 |
| 29,766 |
| |||||
Occupancy and equipment expense |
| 8,047 |
| 7,937 |
| 9,148 |
| 6,346 |
| 6,582 |
| |||||
Data processing fees |
| 1,610 |
| 2,260 |
| 1,740 |
| 2,049 |
| 3,539 |
| |||||
Professional service fees |
| 2,985 |
| 2,717 |
| 4,123 |
| 3,974 |
| 4,418 |
| |||||
FDIC loss sharing expense |
| 245 |
| 983 |
| 524 |
| 483 |
| 106 |
| |||||
Bank acquisition and due diligence fees |
| 239 |
| 268 |
| 1,711 |
| 819 |
| 171 |
| |||||
Marketing expense |
| 1,005 |
| 1,607 |
| 1,091 |
| 659 |
| 634 |
| |||||
Other employee expense |
| 663 |
| 804 |
| 696 |
| 672 |
| 943 |
| |||||
Insurance expense |
| 1,364 |
| 803 |
| 1,849 |
| 1,851 |
| 1,911 |
| |||||
Other expense |
| 5,353 |
| 6,302 |
| 8,836 |
| 6,319 |
| 5,303 |
| |||||
Total noninterest expenses |
| 51,263 |
| 54,072 |
| 65,447 |
| 53,009 |
| 53,373 |
| |||||
Income before income taxes |
| 29,419 |
| 16,360 |
| 36,571 |
| 6,582 |
| 6,487 |
| |||||
Income tax provision (benefit) |
| 9,904 |
| (4,246 | ) | (1,656 | ) | (5,971 | ) | (4,057 | ) | |||||
Net income |
| $ | 19,515 |
| $ | 20,606 |
| $ | 38,227 |
| $ | 12,553 |
| $ | 10,544 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| $ | 0.28 |
| $ | 0.29 |
| $ | 0.56 |
| $ | 0.19 |
| $ | 0.16 |
|
Diluted |
| $ | 0.26 |
| $ | 0.27 |
| $ | 0.52 |
| $ | 0.18 |
| 0.15 |
| |
Average common shares outstanding - basic |
| 70,092 |
| 70,021 |
| 68,121 |
| 66,231 |
| 66,229 |
| |||||
Average common shares outstanding - diluted |
| 75,752 |
| 75,659 |
| 73,377 |
| 70,555 |
| 69,853 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total comprehensive income |
| 19,369 |
| 25,254 |
| 43,808 |
| 9,922 |
| 10,737 |
| |||||
(1) First quarter 2014 information is revised to reflect the impact to the financial statements from adjustments to the acquisition date fair value of deferred income tax benefits in the Talmer West Bank acquisition within the measurement period. These adjustments increased first quarter 2014 net income and period end equity by $1.8 million compared to previously reported levels.
Talmer Bancorp, Inc.
Selected Financial Information
(Unaudited)
|
| 2014 |
| 2013 |
| |||||||||||
(Dollars in thousands, except per share data) |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| |||||
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest income |
| $ | 55,595 |
| $ | 55,366 |
| $ | 51,103 |
| $ | 41,932 |
| $ | 46,869 |
|
Interest expense |
| 3,399 |
| 2,835 |
| 2,987 |
| 2,648 |
| 2,868 |
| |||||
Net interest income |
| 52,196 |
| 52,531 |
| 48,116 |
| 39,284 |
| 44,001 |
| |||||
Provision for loan losses - uncovered |
| 7,784 |
| 3,219 |
| 6,424 |
| 6,569 |
| 2,852 |
| |||||
Benefit for loan losses - covered |
| (6,275 | ) | (7,321 | ) | (2,498 | ) | (3,319 | ) | (727 | ) | |||||
Bargain purchase gains |
| — |
| — |
| 41,977 |
| — |
| — |
| |||||
Noninterest income |
| 29,995 |
| 13,799 |
| 57,828 |
| 23,557 |
| 17,984 |
| |||||
Noninterest expenses |
| 51,263 |
| 54,072 |
| 65,447 |
| 53,009 |
| 53,373 |
| |||||
Income before income taxes |
| 29,419 |
| 16,360 |
| 36,571 |
| 6,582 |
| 6,487 |
| |||||
Income tax provision (benefit) |
| 9,904 |
| (4,246 | ) | (1,656 | ) | (5,971 | ) | (4,057 | ) | |||||
Net income |
| 19,515 |
| 20,606 |
| 38,227 |
| 12,553 |
| 10,544 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per Share Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per common share |
| $ | 0.28 |
| $ | 0.29 |
| $ | 0.56 |
| $ | 0.19 |
| $ | 0.16 |
|
Diluted earnings per common share |
| 0.26 |
| 0.27 |
| 0.52 |
| 0.18 |
| 0.15 |
| |||||
Book value per common share |
| 10.59 |
| 10.33 |
| 10.05 |
| 9.32 |
| 9.16 |
| |||||
Tangible book value per share (1) |
| 10.40 |
| 10.11 |
| 9.82 |
| 9.12 |
| 8.95 |
| |||||
Shares outstanding (in thousands) |
| 70,504 |
| 70,451 |
| 69,962 |
| 66,234 |
| 66,229 |
| |||||
Average common diluted shares (in thousands) |
| 75,752 |
| 75,659 |
| 73,377 |
| 70,555 |
| 69,853 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Selected Period End Balances |
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
| $ | 5,744,170 |
| $ | 5,609,493 |
| $ | 5,423,261 |
| $ | 4,547,361 |
| $ | 4,741,945 |
|
Securities available-for-sale |
| 734,489 |
| 731,700 |
| 632,047 |
| 620,083 |
| 652,739 |
| |||||
Total Loans |
| 4,035,125 |
| 3,755,487 |
| 3,643,196 |
| 3,003,984 |
| 2,880,727 |
| |||||
Uncovered loans |
| 3,631,333 |
| 3,296,207 |
| 3,145,276 |
| 2,473,916 |
| 2,322,193 |
| |||||
Covered loans |
| 403,792 |
| 459,280 |
| 497,920 |
| 530,068 |
| 558,534 |
| |||||
FDIC indemnification asset |
| 82,441 |
| 102,694 |
| 119,045 |
| 131,861 |
| 148,325 |
| |||||
Total deposits |
| 4,485,597 |
| 4,296,534 |
| 4,386,332 |
| 3,600,837 |
| 3,662,714 |
| |||||
Total liabilities |
| 4,997,518 |
| 4,881,548 |
| 4,720,233 |
| 3,930,346 |
| 4,135,114 |
| |||||
Total shareholders’ equity |
| 746,652 |
| 727,945 |
| 703,028 |
| 617,015 |
| 606,831 |
| |||||
Tangible shareholders’ equity (1) |
| 732,956 |
| 712,567 |
| 686,926 |
| 603,810 |
| 592,963 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performance and Capital Ratios |
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets (annualized) |
| 1.36 | % | 1.51 | % | 2.75 | % | 1.08 | % | 0.90 | % | |||||
Return on average equity (annualized) |
| 10.56 |
| 11.61 |
| 22.15 |
| 8.24 |
| 7.37 |
| |||||
Net interest margin (fully taxable equivalent) (annualized) (2) |
| 4.04 |
| 4.35 |
| 3.95 |
| 3.72 |
| 4.11 |
| |||||
Tangible average equity to tangible average assets (1) |
| 12.64 |
| 12.79 |
| 12.17 |
| 12.89 |
| 11.90 |
| |||||
Tier 1 leverage ratio (3) |
| 11.45 |
| 11.71 |
| 11.13 |
| 12.19 |
| 11.78 |
| |||||
Tier 1 risk-based capital (3) |
| 15.56 |
| 16.16 |
| 16.54 |
| 18.29 |
| 17.83 |
| |||||
Total risk-based capital (3) |
| 16.76 |
| 17.31 |
| 17.60 |
| 19.21 |
| 18.66 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net charge-offs to average loans, excluding covered loans (annualized) |
| 0.25 | % | 0.20 | % | 0.17 | % | 0.01 | % | 0.19 | % | |||||
Nonperforming assets as a percentage of total assets |
| 1.73 |
| 1.60 |
| 1.79 |
| 1.55 |
| 1.53 |
| |||||
Nonperforming loans as a percent of total loans |
| 1.38 |
| 1.04 |
| 1.13 |
| 1.40 |
| 1.43 |
| |||||
Nonperforming loans as a percent of total loans, excluding covered loans |
| 1.19 |
| 0.79 |
| 0.81 |
| 0.98 |
| 1.02 |
| |||||
Allowance for loan losses as a percentage of period-end loans |
| 1.38 |
| 1.52 |
| 1.67 |
| 1.93 |
| 2.02 |
| |||||
Allowance for loan losses - uncovered as a percentage of period-end uncovered loans |
| 0.82 |
| 0.74 |
| 0.72 |
| 0.72 |
| 0.67 |
| |||||
Allowance for loan losses as a percentage of nonperforming loans, excluding loans accounted for under ASC 310-30 |
| 33.68 |
| 42.07 |
| 50.61 |
| 43.52 |
| 41.55 |
| |||||
(1) See section entitled “Reconciliation of Non-GAAP Financial Measures.”
(2) Presented on a tax equivalent basis using a 35% tax rate for all periods presented.
(3) Third quarter 2014 is estimated.
Talmer Bancorp, Inc.
Loan Data
(Unaudited)
|
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| September 30, |
| |||||
(Dollars in thousands) |
| 2014 |
| 2014 |
| 2014 |
| 2013 |
| 2013 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Uncovered loans |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| $ | 1,430,939 |
| $ | 1,362,869 |
| $ | 1,267,714 |
| $ | 1,085,453 |
| $ | 998,264 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
| |||||
Non-owner occupied |
| 814,179 |
| 731,743 |
| 742,151 |
| 581,651 |
| 579,751 |
| |||||
Owner-occupied |
| 379,964 |
| 371,406 |
| 377,678 |
| 148,545 |
| 135,743 |
| |||||
Farmland |
| 19,218 |
| 28,199 |
| 27,964 |
| 25,643 |
| 23,931 |
| |||||
Total commercial real estate |
| 1,213,361 |
| 1,131,348 |
| 1,147,793 |
| 755,839 |
| 739,425 |
| |||||
Commercial and industrial |
| 790,867 |
| 647,090 |
| 573,268 |
| 446,644 |
| 384,265 |
| |||||
Real estate construction |
| 102,920 |
| 112,866 |
| 143,569 |
| 176,226 |
| 190,312 |
| |||||
Consumer |
| 93,246 |
| 42,034 |
| 12,932 |
| 9,754 |
| 9,927 |
| |||||
Total uncovered loans |
| 3,631,333 |
| 3,296,207 |
| 3,145,276 |
| 2,473,916 |
| 2,322,193 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Covered loans |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| 113,228 |
| 117,507 |
| 119,408 |
| 123,334 |
| 128,798 |
| |||||
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
| |||||
Non-owner occupied |
| 121,491 |
| 142,846 |
| 143,460 |
| 154,951 |
| 161,671 |
| |||||
Owner-occupied |
| 80,990 |
| 91,829 |
| 108,630 |
| 115,435 |
| 119,470 |
| |||||
Farmland |
| 17,015 |
| 21,541 |
| 27,059 |
| 29,015 |
| 29,253 |
| |||||
Total commercial real estate |
| 219,496 |
| 256,216 |
| 279,149 |
| 299,401 |
| 310,394 |
| |||||
Commercial and industrial |
| 47,252 |
| 60,497 |
| 71,155 |
| 78,437 |
| 88,749 |
| |||||
Real estate construction |
| 13,734 |
| 14,391 |
| 16,895 |
| 17,218 |
| 18,312 |
| |||||
Consumer |
| 10,082 |
| 10,669 |
| 11,313 |
| 11,678 |
| 12,281 |
| |||||
Total covered loans |
| 403,792 |
| 459,280 |
| 497,920 |
| 530,068 |
| 558,534 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total loans |
| $ | 4,035,125 |
| $ | 3,755,487 |
| $ | 3,643,196 |
| $ | 3,003,984 |
| $ | 2,880,727 |
|
Talmer Bancorp, Inc.
Impaired Loans
(Unaudited)
|
| 2014 |
| 2013 |
| |||||||||||
(Dollars in thousands) |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| |||||
Uncovered |
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| $ | 2,284 |
| $ | 1,920 |
| $ | 2,189 |
| $ | 2,469 |
| $ | 1,170 |
|
Commercial real estate |
| 3,122 |
| 2,842 |
| 2,664 |
| 3,581 |
| 1,946 |
| |||||
Commercial and industrial |
| 135 |
| 541 |
| 526 |
| 415 |
| 434 |
| |||||
Consumer |
| 84 |
| 90 |
| 2 |
| 3 |
| 3 |
| |||||
Total nonperforming troubled debt restructurings |
| 5,625 |
| 5,393 |
| 5,381 |
| 6,468 |
| 3,553 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonaccrual loans other than nonperforming troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| 13,449 |
| 11,708 |
| 11,633 |
| 12,946 |
| 11,939 |
| |||||
Commercial real estate |
| 9,456 |
| 6,590 |
| 6,174 |
| 2,010 |
| 4,841 |
| |||||
Commercial and industrial |
| 14,339 |
| 2,074 |
| 1,723 |
| 2,266 |
| 854 |
| |||||
Real estate construction |
| 253 |
| 158 |
| 582 |
| 510 |
| 2,357 |
| |||||
Consumer |
| 161 |
| 76 |
| 100 |
| 97 |
| 103 |
| |||||
Total nonaccrual loans other than nonperforming troubled debt restructurings |
| 37,658 |
| 20,606 |
| 20,212 |
| 17,829 |
| 20,094 |
| |||||
Total nonaccrual loans |
| 43,283 |
| 25,999 |
| 25,593 |
| 24,297 |
| 23,647 |
| |||||
Other real estate owned (1) |
| 32,022 |
| 39,806 |
| 45,674 |
| 17,046 |
| 14,727 |
| |||||
Total nonperforming assets |
| 75,305 |
| 65,805 |
| 71,267 |
| 41,343 |
| 38,374 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performing troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| 1,802 |
| 1,628 |
| 828 |
| 328 |
| 4 |
| |||||
Commercial real estate |
| 2,961 |
| 2,588 |
| 3,003 |
| 1,637 |
| 2,899 |
| |||||
Commercial and industrial |
| 652 |
| 995 |
| 1,365 |
| 1,367 |
| 554 |
| |||||
Real estate construction |
| 92 |
| 94 |
| 96 |
| 90 |
| — |
| |||||
Consumer |
| 56 |
| 29 |
| 30 |
| 30 |
| 30 |
| |||||
Total performing troubled debt restructurings |
| 5,563 |
| 5,334 |
| 5,322 |
| 3,452 |
| 3,487 |
| |||||
Total uncovered impaired assets |
| $ | 80,868 |
| $ | 71,139 |
| $ | 76,589 |
| $ | 44,795 |
| $ | 41,861 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 |
| $ | 595 |
| $ | 305 |
| $ | 3 |
| $ | 539 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Covered |
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| $ | 1,304 |
| $ | 1,408 |
| $ | 962 |
| $ | 900 |
| $ | 914 |
|
Commercial real estate |
| 4,144 |
| 4,861 |
| 6,235 |
| 6,561 |
| 5,340 |
| |||||
Commercial and industrial |
| 2,438 |
| 2,089 |
| 2,780 |
| 3,052 |
| 3,019 |
| |||||
Real estate construction |
| 614 |
| 595 |
| 1,023 |
| 926 |
| 884 |
| |||||
Consumer |
| 42 |
| 15 |
| 25 |
| 25 |
| 26 |
| |||||
Total nonperforming troubled debt restructurings |
| 8,542 |
| 8,968 |
| 11,025 |
| 11,464 |
| 10,183 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonaccrual loans other than nonperforming troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| 433 |
| 426 |
| 368 |
| 88 |
| 88 |
| |||||
Commercial real estate |
| 1,313 |
| 1,489 |
| 1,563 |
| 1,563 |
| 1,575 |
| |||||
Commercial and industrial |
| 1,653 |
| 1,751 |
| 2,124 |
| 4,149 |
| 5,154 |
| |||||
Real estate construction |
| 441 |
| 439 |
| 442 |
| 446 |
| 457 |
| |||||
Consumer |
| — |
| 1 |
| — |
| 6 |
| 6 |
| |||||
Total nonaccrual loans other than nonperforming troubled debt restructurings |
| 3,840 |
| 4,106 |
| 4,497 |
| 6,252 |
| 7,280 |
| |||||
Total nonaccrual loans |
| 12,382 |
| 13,074 |
| 15,522 |
| 17,716 |
| 17,463 |
| |||||
Other real estate owned |
| 11,766 |
| 10,926 |
| 10,165 |
| 11,571 |
| 16,861 |
| |||||
Total nonperforming assets |
| 24,148 |
| 24,000 |
| 25,687 |
| 29,287 |
| 34,324 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performing troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
| 2,860 |
| 2,821 |
| 2,582 |
| 2,691 |
| 2,544 |
| |||||
Commercial real estate |
| 14,915 |
| 16,102 |
| 15,056 |
| 14,391 |
| 16,733 |
| |||||
Commercial and industrial |
| 2,119 |
| 2,962 |
| 3,030 |
| 3,802 |
| 4,304 |
| |||||
Real estate construction |
| 108 |
| 109 |
| 111 |
| 163 |
| 166 |
| |||||
Total performing troubled debt restructurings |
| 20,002 |
| 21,994 |
| 20,779 |
| 21,047 |
| 23,747 |
| |||||
Total covered impaired assets |
| $ | 44,150 |
| $ | 45,994 |
| $ | 46,466 |
| $ | 50,334 |
| $ | 58,071 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 |
| $ | — |
| $ | 49 |
| $ | 7 |
| $ | — |
| $ | — |
|
(1) Excludes closed branches and operating facilities.
Talmer Bancorp, Inc.
Net Interest Income and Net Interest Margin
(Unaudited)
|
| Three months ended |
| ||||||||||||||||||||||
|
| September 30, 2014 |
| June 30, 2014 |
| September 30, 2013 |
| ||||||||||||||||||
(Dollars in thousands) |
| Average |
| Interest (1) |
| Average Rate |
| Average |
| Interest (1) |
| Average |
| Average |
| Interest (1) |
| Average |
| ||||||
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-earning balances |
| $ | 264,108 |
| $ | 158 |
| 0.24 | % | $ | 249,780 |
| $ | 172 |
| 0.28 | % | $ | 182,539 |
| $ | 97 |
| 0.21 | % |
Federal funds sold and other short-term investments |
| 76,724 |
| 186 |
| 0.97 |
| 76,474 |
| 278 |
| 1.46 |
| 127,526 |
| 279 |
| 0.87 |
| ||||||
Investment securities (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable |
| 539,119 |
| 2,345 |
| 1.73 |
| 524,171 |
| 2,198 |
| 1.68 |
| 478,417 |
| 1,751 |
| 1.45 |
| ||||||
Tax-exempt |
| 181,598 |
| 1,341 |
| 3.96 |
| 164,623 |
| 1,139 |
| 3.75 |
| 192,049 |
| 1,132 |
| 3.16 |
| ||||||
Federal Home Loan Bank stock |
| 17,333 |
| 120 |
| 2.74 |
| 12,980 |
| 160 |
| 4.95 |
| 16,303 |
| 167 |
| 4.06 |
| ||||||
Gross uncovered loans (4) |
| 3,548,152 |
| 44,424 |
| 4.97 |
| 3,254,119 |
| 41,350 |
| 5.10 |
| 2,534,604 |
| 29,441 |
| 4.61 |
| ||||||
Gross covered loans (4) |
| 439,366 |
| 13,684 |
| 12.36 |
| 477,238 |
| 15,575 |
| 13.09 |
| 583,385 |
| 20,034 |
| 13.62 |
| ||||||
FDIC indemnification asset |
| 99,335 |
| (6,663 | ) | (26.61 | ) | 115,566 |
| (5,506 | ) | (19.11 | ) | 167,103 |
| (6,032 | ) | (14.32 | ) | ||||||
Total earning assets |
| 5,165,735 |
| 55,595 |
| 4.31 |
| 4,874,951 |
| 55,366 |
| 4.59 |
| 4,281,926 |
| 46,869 |
| 4.38 |
| ||||||
Non-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash and due from banks |
| 114,081 |
|
|
|
|
| 111,834 |
|
|
|
|
| 118,178 |
|
|
|
|
| ||||||
Allowance for loan losses |
| (55,579 | ) |
|
|
|
| (58,562 | ) |
|
|
|
| (57,884 | ) |
|
|
|
| ||||||
Premises and equipment |
| 51,636 |
|
|
|
|
| 57,084 |
|
|
|
|
| 56,555 |
|
|
|
|
| ||||||
Core deposit intangible |
| 14,398 |
|
|
|
|
| 15,740 |
|
|
|
|
| 14,193 |
|
|
|
|
| ||||||
Other real estate owned |
| 49,368 |
|
|
|
|
| 56,095 |
|
|
|
|
| 35,413 |
|
|
|
|
| ||||||
Loan servicing rights |
| 73,996 |
|
|
|
|
| 76,431 |
|
|
|
|
| 68,795 |
|
|
|
|
| ||||||
FDIC receivable |
| 5,886 |
|
|
|
|
| 6,380 |
|
|
|
|
| 9,672 |
|
|
|
|
| ||||||
Company-owned life insurance |
| 95,930 |
|
|
|
|
| 90,228 |
|
|
|
|
| 39,005 |
|
|
|
|
| ||||||
Other non-earning assets |
| 231,372 |
|
|
|
|
| 215,704 |
|
|
|
|
| 140,578 |
|
|
|
|
| ||||||
Total assets |
| $ | 5,746,823 |
|
|
|
|
| $ | 5,445,885 |
|
|
|
|
| $ | 4,706,431 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing demand deposits |
| $ | 657,107 |
| $ | 190 |
| 0.11 | % | $ | 714,231 |
| $ | 216 |
| 0.12 | % | $ | 557,750 |
| $ | 174 |
| 0.12 | % |
Money market and savings deposits |
| 1,237,984 |
| 487 |
| 0.16 |
| 1,352,163 |
| 492 |
| 0.15 |
| 1,239,927 |
| 447 |
| 0.14 |
| ||||||
Time deposits |
| 1,236,286 |
| 1,611 |
| 0.52 |
| 1,215,585 |
| 1,432 |
| 0.47 |
| 995,623 |
| 1,408 |
| 0.56 |
| ||||||
Other brokered funds |
| 361,929 |
| 288 |
| 0.32 |
| 80,478 |
| 35 |
| 0.17 |
| 93,043 |
| 38 |
| 0.16 |
| ||||||
Short-term borrowings |
| 219,859 |
| 122 |
| 0.22 |
| 126,382 |
| 33 |
| 0.11 |
| 59,361 |
| 26 |
| 0.17 |
| ||||||
Long-term debt |
| 280,054 |
| 701 |
| 0.99 |
| 209,721 |
| 627 |
| 1.20 |
| 259,197 |
| 775 |
| 1.19 |
| ||||||
Total interest-bearing liabilities |
| 3,993,219 |
| 3,399 |
| 0.34 |
| 3,698,560 |
| 2,835 |
| 0.31 |
| 3,204,901 |
| 2,868 |
| 0.35 |
| ||||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Noninterest-bearing demand deposits |
| 961,558 |
|
|
|
|
| 965,979 |
|
|
|
|
| 828,797 |
|
|
|
|
| ||||||
FDIC clawback liability |
| 26,493 |
|
|
|
|
| 25,787 |
|
|
|
|
| 24,167 |
|
|
|
|
| ||||||
Other liabilities |
| 26,683 |
|
|
|
|
| 45,573 |
|
|
|
|
| 76,223 |
|
|
|
|
| ||||||
Stockholders’ equity |
| 738,870 |
|
|
|
|
| 709,986 |
|
|
|
|
| 572,343 |
|
|
|
|
| ||||||
Total liabilities and stockholders’ equity |
| $ | 5,746,823 |
|
|
|
|
| $ | 5,445,885 |
|
|
|
|
| $ | 4,706,431 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net interest income |
|
|
| $ | 52,196 |
|
|
|
|
| $ | 52,531 |
|
|
|
|
| $ | 44,001 |
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest spread |
|
|
|
|
| 3.97 | % |
|
|
|
| 4.28 | % |
|
|
|
| 4.03 | % | ||||||
Net interest margin as a percentage of interest-earning assets |
|
|
|
|
| 4.01 |
|
|
|
|
| 4.32 |
|
|
|
|
| 4.07 |
| ||||||
Tax equivalent effect |
|
|
|
|
| 0.03 |
|
|
|
|
| 0.03 |
|
|
|
|
| 0.04 |
| ||||||
Net interest margin as a percentage of interest-earning assets (FTE) |
|
|
|
|
| 4.04 | % |
|
|
|
| 4.35 | % |
|
|
|
| 4.11 | % | ||||||
(1) Interest income is shown on actual basis and does not include taxable equivalent adjustments.
(2) Average rates are presented on an annual basis and includes a taxable equivalent adjustment to interest income on tax exempt securities of $469 thousand, $399 thousand and $396 thousand for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013, respectively, using the statutory tax rate of 35%.
(3) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(4) Includes nonaccrual loans.
Talmer Bancorp, Inc.
Net Interest Income and Net Interest Margin
(Unaudited)
|
| Nine months ended |
| ||||||||||||||
|
| September 30, 2014 |
| September 30, 2013 |
| ||||||||||||
(Dollars in thousands) |
| Average |
| Interest (1) |
| Average |
| Average |
| Interest (1) |
| Average |
| ||||
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning balances |
| $ | 304,413 |
| $ | 546 |
| 0.24 | % | $ | 317,077 |
| $ | 588 |
| 0.25 | % |
Federal funds sold and other short-term investments |
| 74,651 |
| 641 |
| 1.15 |
| 114,012 |
| 726 |
| 0.85 |
| ||||
Investment securities (3): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 501,122 |
| 6,421 |
| 1.71 |
| 451,534 |
| 4,217 |
| 1.25 |
| ||||
Tax-exempt |
| 189,117 |
| 4,432 |
| 4.23 |
| 176,507 |
| 3,132 |
| 3.20 |
| ||||
Federal Home Loan Bank stock |
| 17,561 |
| 465 |
| 3.54 |
| 16,115 |
| 712 |
| 5.91 |
| ||||
Gross uncovered loans (4) |
| 3,341,423 |
| 125,376 |
| 5.02 |
| 2,407,837 |
| 87,502 |
| 4.86 |
| ||||
Gross covered loans (4) |
| 476,465 |
| 43,070 |
| 12.09 |
| 700,344 |
| 62,001 |
| 11.84 |
| ||||
FDIC indemnification asset |
| 114,190 |
| (18,887 | ) | (22.11 | ) | 194,175 |
| (21,088 | ) | (14.52 | ) | ||||
Total earning assets |
| 5,018,942 |
| 162,064 |
| 4.36 |
| 4,377,601 |
| 137,790 |
| 4.24 |
| ||||
Non-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| 99,858 |
|
|
|
|
| 106,678 |
|
|
|
|
| ||||
Allowance for loan losses |
| (57,202 | ) |
|
|
|
| (59,800 | ) |
|
|
|
| ||||
Premises and equipment |
| 54,677 |
|
|
|
|
| 58,238 |
|
|
|
|
| ||||
Core deposit intangible |
| 15,635 |
|
|
|
|
| 14,859 |
|
|
|
|
| ||||
Other real estate owned |
| 54,964 |
|
|
|
|
| 39,761 |
|
|
|
|
| ||||
Loan servicing rights |
| 76,809 |
|
|
|
|
| 57,860 |
|
|
|
|
| ||||
FDIC receivable |
| 6,440 |
|
|
|
|
| 13,237 |
|
|
|
|
| ||||
Company-owned life insurance |
| 75,908 |
|
|
|
|
| 38,677 |
|
|
|
|
| ||||
Other non-earning assets |
| 222,938 |
|
|
|
|
| 111,570 |
|
|
|
|
| ||||
Total assets |
| $ | 5,568,969 |
|
|
|
|
| $ | 4,758,681 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing demand deposits |
| $ | 693,346 |
| $ | 630 |
| 0.12 | % | $ | 554,029 |
| $ | 500 |
| 0.12 | % |
Money market and savings deposits |
| 1,328,229 |
| 1,473 |
| 0.15 |
| 1,233,017 |
| 1,459 |
| 0.16 |
| ||||
Time deposits |
| 1,257,393 |
| 4,534 |
| 0.48 |
| 1,131,464 |
| 4,614 |
| 0.55 |
| ||||
Other brokered funds |
| 175,169 |
| 352 |
| 0.27 |
| 74,832 |
| 110 |
| 0.20 |
| ||||
Short-term borrowings |
| 150,057 |
| 330 |
| 0.29 |
| 52,618 |
| 81 |
| 0.21 |
| ||||
Long-term debt |
| 234,087 |
| 1,902 |
| 1.09 |
| 263,324 |
| 2,313 |
| 1.17 |
| ||||
Total interest-bearing liabilities |
| 3,838,281 |
| 9,221 |
| 0.32 |
| 3,309,284 |
| 9,077 |
| 0.37 |
| ||||
Noninterest-bearing liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest-bearing demand deposits |
| 949,516 |
|
|
|
|
| 747,619 |
|
|
|
|
| ||||
FDIC clawback liability |
| 25,790 |
|
|
|
|
| 22,986 |
|
|
|
|
| ||||
Other liabilities |
| 37,239 |
|
|
|
|
| 82,906 |
|
|
|
|
| ||||
Stockholders’ equity |
| 718,143 |
|
|
|
|
| 595,886 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 5,568,969 |
|
|
|
|
| $ | 4,758,681 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income |
|
|
| $ | 152,843 |
|
|
|
|
| $ | 128,713 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest spread |
|
|
|
|
| 4.04 | % |
|
|
|
| 3.87 | % | ||||
Net interest margin as a percentage of interest-earning assets |
|
|
|
|
| 4.07 |
|
|
|
|
| 3.93 |
| ||||
Tax equivalent effect |
|
|
|
|
| 0.03 |
|
|
|
|
| 0.03 |
| ||||
Net interest margin as a percentage of interest-earning assets (FTE) |
|
|
|
|
| 4.10 | % |
|
|
|
| 3.96 | % | ||||
(1) Interest income is shown on actual basis and does not include taxable equivalent adjustments.
(2) Average rates are presented on an annual basis and includes a taxable equivalent adjustment to interest income on tax exempt securities of $1.6 million and $1.1 million for the nine months ended September 30, 2014 and 2013, respectively, using the statutory tax rate of 35%.
(3) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(4) Includes nonaccrual loans.
Talmer Bancorp, Inc.
Reconciliation of Non-GAAP Financial Measures (1)
(Unaudited)
|
| 2014 |
| 2013 |
| |||||||||||
(Dollars in thousands, except per shara date) |
| 3rd Quarter |
| 2nd Quarter |
| 1st Quarter |
| 4th Quarter |
| 3rd Quarter |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tangible shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total Shareholders’ equity |
| $ | 746,652 |
| $ | 727,945 |
| $ | 703,028 |
| $ | 617,015 |
| $ | 606,831 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
| |||||
Core deposit intangibles |
| 13,696 |
| 15,378 |
| 16,102 |
| 13,205 |
| 13,868 |
| |||||
Tangible shareholders’ equity |
| $ | 732,956 |
| $ | 712,567 |
| $ | 686,926 |
| $ | 603,810 |
| $ | 592,963 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Shares outstanding |
| 70,504 |
| 70,451 |
| 69,962 |
| 66,234 |
| 66,229 |
| |||||
Tangible book value per share |
| $ | 10.40 |
| $ | 10.11 |
| $ | 9.82 |
| $ | 9.12 |
| $ | 8.95 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tangible average equity to tangible average assets: |
|
|
|
|
|
|
|
|
|
|
| |||||
Average Assets |
| $ | 5,746,823 |
| $ | 5,445,885 |
| $ | 5,550,291 |
| $ | 4,635,307 |
| $ | 4,706,431 |
|
Average Equity |
| 738,870 |
| 709,986 |
| 690,214 |
| 609,345 |
| 572,343 |
| |||||
Average Core Deposit intangibles |
| 14,398 |
| 15,740 |
| 16,794 |
| 13,527 |
| 14,193 |
| |||||
Tangible average equity to tangible average assets |
| 12.64 | % | 12.79 | % | 12.17 | % | 12.89 | % | 11.90 |
| |||||
(1) Management believes these non-GAAP financial measures provide useful information to both management and investors that is supplementary to our financial condition and results of operations in accordance with GAAP; however, we do acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use.