CBF Reports Third Quarter Results
Page 1
October 19, 2017
EXHIBIT 99.1
CONTACT:
Kenneth A. Posner
Chief of Strategic Planning and Investor Relations
Phone: (212) 399-4020
E-mail: Kposner@cbfcorp.com
CAPITAL BANK FINANCIAL CORP. REPORTS THIRD QUARTER GAAP EPS OF $0.48 AND CORE EPS OF $0.50
CHARLOTTE, NC. (October 19, 2017) - Capital Bank Financial Corp. (Nasdaq: CBF) (the “Company”) today reported third quarter GAAP net income of $25.8 million, which increased 8% quarter over quarter. GAAP net income per diluted share was $0.48. Core net income decreased to $26.5 million, down 1% quarter over quarter. Core net income per diluted share was $0.50. Core pre-tax adjustments for the third quarter of 2017 included $0.6 million of branch closure expenses and $0.6 million of merger related expenses, partially offset by $0.1 million net gain on investment securities. The reconciliation of non-GAAP financial measures (including core net income and core net income per diluted share) are included in tabular form at the end of this release.
Highlights of the quarter include:
| |
| • | Reported ROA of 1.02%, up 7 bps quarter over quarter; |
| |
| • | Reported efficiency ratio of 56.6%; down 365 bps quarter over quarter; |
| |
| • | Sustained only temporary disruption in our branch network associated with Hurricane Irma and reopened all but two offices within a matter of days; |
| |
| • | Shareholders voted to approve merger with First Horizon National Corporation; and |
| |
| • | Declared quarterly dividend of $0.12 per common share. |
“We are working hard to prepare for the merger with First Horizon, while at the same time sustaining profitability and customer momentum,” said Gene Taylor, Chairman and Chief Executive Officer of Capital Bank Financial Corp.
“We achieved strong results in the third quarter, which are in line with the goals we outlined at the beginning of the year. We also made significant progress in planning our integration with First Horizon, and we are well positioned to continue our momentum following our close,” added Chris Marshall, Chief Financial Officer of Capital Bank Financial Corp.
Hurricane Irma
On September 10, 2017, Hurricane Irma struck the south coast of Florida, temporarily disrupting our branch network. However within a matter of days, all but two of our offices were back open and assisting customers, while the remaining two offices will open during the fourth quarter. The Company incurred property costs associated with Hurricane Irma of approximately $0.2 million, which are reflected in third quarter results. The Company has also reviewed its lending and deposit portfolio and determined no impairment was indicated at this time as a result of Hurricane Irma. In working with its borrowers and depositors affected by this hurricane, the Company has entered into temporary payment deferral agreements of 90 days or less on loans covering $78.6 million of outstanding principle. Each of these loans were assessed individually and were determined to not be a troubled debt restructuring. The review process is on-going and we will continue to monitor the impact on our loan portfolio.
Loan Portfolio and Composition
During the third quarter, the loan portfolio increased by $42.5 million to $7.6 billion, consisting of a $53.1 million increase in commercial real estate and commercial and industrial loans, a $14.0 million decrease in consumer loans, and a $3.4 million increase in other loans. New loan production of $485.4 million was offset by payoffs of $408.7 million and special assets resolutions of $34.2 million.
The relative composition of the Company’s loan portfolio at the end of the third and second quarter of 2017 and fourth quarter of 2016 was as follows:
CBF Reports Third Quarter Results
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October 19, 2017
|
| | | | | | | | | |
| | | Sep 30,
2017 | | Jun 30,
2017 | | Dec 31,
2016 |
| Commercial real estate | | 26 | % | | 26 | % | | 23 | % |
| C&I | | 36 | % | | 36 | % | | 38 | % |
| Consumer | | 35 | % | | 35 | % | | 36 | % |
| Other | | 3 | % | | 3 | % | | 3 | % |
| Total | | 100 | % | | 100 | % | | 100 | % |
Deposits Composition and Cost of Funds
During the third quarter, total deposits increased by $46.6 million sequentially to $8.1 billion. The cost of total deposits increased by seven basis points sequentially to 0.48% and increased seven basis points year over year.
Net Interest Income and Net Interest Margin
Net interest income increased $0.7 million to $85.9 million from $85.2 million for the second quarter of 2017 and increased $23.3 million from $62.6 million for the third quarter of 2016. The year over year increase was mainly due to the acquisition of CommunityOne. The net interest margin for the third quarter of 2017 was 3.71%, a decline of four basis points sequentially and an increase of 13 basis points year over year.
Non-Interest Income
Non-interest income declined $1.2 million to $14.8 million from $16.0 million for the second quarter of 2017 and increased $2.4 million from $12.4 million for the third quarter of 2016. The year over year increase was mainly due to the acquisition of CommunityOne and includes a $1.4 million increase in debit card income, a $0.6 million increase in other income (includes BOLI, credit card and merchant service income), and a $0.5 million increase in service charges.
Provision for Loan and Lease Losses and Credit Quality
The provision of $3.0 million recorded for the third quarter of 2017 included a $2.8 million provision for non-purchased credit impaired loans and a $0.2 million provision on purchased credit impaired loans. Net charge-offs for the third quarter of 2017 were $2.3 million, $0.7 million higher than the second quarter of 2017.
At September 30, 2017, the allowance for loan and lease losses was $45.4 million, of which $24.2 million related to purchase credit impaired loans and $21.2 million related to non-purchased credit impaired loans. The allowance for loan and lease losses represents 0.60% of the Company’s total $7.6 billion loan portfolio.
At September 30, 2017, non-performing loans were $63.8 million, or 0.84% of loans, and decreased 6.48% from June 30, 2017, mainly as a result of resolutions and upgrades. The balance on non-performing loans increased 5.72% from September 30, 2016, due primarily to the acquisition of CommunityOne.
Non-Interest Expense
Non-interest expense declined $4.0 million to $57.0 million from $61.0 million for the second quarter of 2017 and increased $9.5 million from $47.5 million for the third quarter of 2016. Contributing to the sequential decrease was a decrease of $2.4 million in restructuring charges related to branch closures during the second quarter, a $1.0 million decrease in salaries and benefits and a $0.5 million decrease in computer services as part of cost savings initiatives. Partially offsetting the sequential decrease was a $0.5 million increase in stock based compensation. The year over year increase was mainly due to increases of $5.8 million in salaries and benefit expense and $1.6 million in occupancy and equipment expense, which were mostly related to the acquisition of CommunityOne. The Company benefited from cost savings associated with the integration of CommunityOne and continues to review opportunities for additional cost savings.
Income Tax Expense
Income tax expense was $14.9 million for the third quarter of 2017 with an effective tax rate of 37%, compared to $14.1 million and 37% for the second quarter of 2017. Income tax expense was $8.4 million and an effective tax rate of 31% for the third quarter of 2016.
CBF Reports Third Quarter Results
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October 19, 2017
Financial Position
Total assets increased by $46.3 million to $10.1 billion as of September 30, 2017, from $10.1 billion as of June 30, 2017. During the quarter, the Company’s loan portfolio increased $42.5 million to $7.6 billion. Total deposits increased by $46.6 million to $8.1 billion. Core deposits include all checking, savings and money market accounts, excluding brokered, and represent 70% of total deposits. FHLB borrowings decreased $30.1 million. Book value per share was $26.04 as of September 30, 2017, an increase of $0.42 and $2.22 from June 30, 2017 and September 30, 2016, respectively. Tangible book value per share was $21.26 as of September 30, 2017, an increase of $0.50 and $0.73 from June 30, 2017 and September 30, 2016, respectively. During the third quarter, the Company did not repurchase shares of common stock. The reconciliation of non-GAAP financial measures (including tangible book value and tangible book value per share) are included in tabular form at the end of this release.
The Company declared a cash dividend of $0.12 per share, payable on November 13, 2017, to shareholders of record as of November 3, 2017.
Adoption of New Accounting Guidance
The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which addresses, among other items, the accounting for income taxes and forfeitures. Upon adoption, excess tax benefits generated when stock awards vest or settle are no longer recognized in equity but are instead recognized as a reduction to provision for income taxes. The Company reflected the adjustments on a modified prospective basis as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption.
Forward-Looking Statements
Information in this press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors more fully described under the caption “Risk Factors” in the annual report on Form 10-K and other periodic reports filed by us with the Securities and Exchange Commission. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward looking statements including, but not limited to: (1) changes in general economic and financial market conditions; (2) changes in the regulatory environment; (3) economic conditions generally and in the financial services industry; (4) changes in the economy affecting real estate values; (5) our ability to achieve loan and deposit growth; (6) the completion of future acquisitions or business combinations and our ability to integrate any acquired businesses into our business model; (7) projected population and income growth in our targeted market areas; (8) competitive pressures in our markets and industry; (9) our ability to attract and retain key personnel; (10) changes in accounting policies or judgments and (11) volatility and direction of market interest rates and a weakening of the economy which could materially impact credit quality trends and the ability to generate loans. All forward-looking statements are necessarily only estimates of future results, and actual results may differ materially from expectations. You are, therefore, cautioned not to place undue reliance on such statements, which should be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP measures used in this report. A reconciliation to the most directly comparable GAAP financial measures – net income in the case of core net income and core ROA, total non-interest income and total non-interest expense
CBF Reports Third Quarter Results
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October 19, 2017
in the case of core efficiency ratio, and total shareholders’ equity in the case of tangible book value and tangible book value per share – appears in tabular form at the end of this release. The Company believes core net income, core efficiency ratio, and core ROA are useful for both investors and management to understand the effects of certain non-interest items and provide an alternative view of the Company’s performance over time and in comparison to the Company’s competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value and tangible book value per share are useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for the most directly comparable GAAP measure.
The Company uses these non-GAAP measures for various purposes, including measuring performance for incentive compensation and as a basis for strategic planning and forecasting.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About Capital Bank Financial Corp.
Capital Bank Financial Corp. is a bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank Corporation, a State of North Carolina chartered financial institution with $10.1 billion in total assets as of September 30, 2017, and 178 full-service banking offices throughout Florida, North and South Carolina, Tennessee, and Virginia. To learn more about Capital Bank Financial Corp, please visit www.capitalbank-us.com.
CBF Reports Third Quarter Results
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October 19, 2017
CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Sep 30,
2017 | | Jun 30,
2017 | | Mar 31,
2017 | | Dec 31,
2016 | | Sep 30,
2016 |
| Interest and dividend income | $ | 99,711 |
| | $ | 97,286 |
| | $ | 92,937 |
| | $ | 87,746 |
| | $ | 70,929 |
|
| Interest expense | 13,795 |
| | 12,044 |
| | 10,821 |
| | 9,927 |
| | 8,302 |
|
| Net interest income | 85,916 |
| | 85,242 |
| | 82,116 |
| | 77,819 |
| | 62,627 |
|
| Provision for loan and lease losses | 3,042 |
| | 2,303 |
| | 3,392 |
| | 1,980 |
| | 586 |
|
| Net interest income after provision for loan and lease losses | 82,874 |
| | 82,939 |
| | 78,724 |
| | 75,839 |
| | 62,041 |
|
| Non-interest income | | | | | | | | | |
| Service charges on deposit accounts | 5,311 |
| | 5,237 |
| | 5,375 |
| | 5,949 |
| | 4,777 |
|
| Debit card income | 4,822 |
| | 5,051 |
| | 4,765 |
| | 4,211 |
| | 3,389 |
|
| Fees on mortgage loans originated and sold | 931 |
| | 1,150 |
| | 1,248 |
| | 1,402 |
| | 1,334 |
|
| Investment advisory and trust fees | 537 |
| | 596 |
| | 641 |
| | 591 |
| | 290 |
|
| Investment securities gains, net | 98 |
| | 70 |
| | 67 |
| | 1,894 |
| | 71 |
|
| Other income | 3,074 |
| | 3,896 |
| | 3,756 |
| | 2,969 |
| | 2,509 |
|
| Total non-interest income | 14,773 |
| | 16,000 |
| | 15,852 |
| | 17,016 |
| | 12,370 |
|
| Non-interest expense | | | | | | | | | |
| Salaries and employee benefits | 26,708 |
| | 27,662 |
| | 29,166 |
| | 26,134 |
| | 20,935 |
|
| Stock-based compensation expense | 1,441 |
| | 964 |
| | 900 |
| | 531 |
| | 790 |
|
| Net occupancy and equipment expense | 8,894 |
| | 8,826 |
| | 8,992 |
| | 8,374 |
| | 7,340 |
|
| Computer services | 3,794 |
| | 4,280 |
| | 3,873 |
| | 4,364 |
| | 3,153 |
|
| Software expense | 2,524 |
| | 2,573 |
| | 2,662 |
| | 2,391 |
| | 1,948 |
|
| Telecommunication expense | 1,968 |
| | 1,939 |
| | 2,424 |
| | 2,147 |
| | 1,790 |
|
| OREO valuation expense | 249 |
| | 262 |
| | 247 |
| | 677 |
| | 742 |
|
| Net losses (gains) on sales of OREO | 1 |
| | (204 | ) | | (308 | ) | | (150 | ) | | (159 | ) |
| Foreclosed asset related expense | 487 |
| | 376 |
| | 364 |
| | 513 |
| | 397 |
|
| Loan workout expense | 281 |
| | 281 |
| | 201 |
| | 327 |
| | 206 |
|
| Conversion and merger related expense, net | 591 |
| | 981 |
| | 3,037 |
| | 18,525 |
| | 394 |
|
| Professional fees | 2,071 |
| | 1,800 |
| | 2,096 |
| | 1,761 |
| | 1,642 |
|
| Restructuring charges, net | 595 |
| | 2,978 |
| | 1,912 |
| | 4 |
| | (113 | ) |
| Legal settlement expense | — |
| | 45 |
| | — |
| | 1,361 |
| | 1,500 |
|
| Regulatory assessments | 1,020 |
| | 1,145 |
| | 719 |
| | 1,092 |
| | 841 |
|
| Other expense | 6,360 |
| | 7,077 |
| | 6,418 |
| | 5,943 |
| | 6,124 |
|
| Total non-interest expense | 56,984 |
| | 60,985 |
| | 62,703 |
| | 73,994 |
| | 47,530 |
|
| Income before income taxes | 40,663 |
| | 37,954 |
| | 31,873 |
| | 18,861 |
| | 26,881 |
|
Income tax expense (1) | 14,905 |
| | 14,148 |
| | 10,990 |
| | 6,509 |
| | 8,370 |
|
Net income (1) | $ | 25,758 |
| | $ | 23,806 |
| | $ | 20,883 |
| | $ | 12,352 |
| | $ | 18,511 |
|
| | | | | | | | | | |
| Earnings per share: | | | | | | | | | |
Basic (1) | $ | 0.50 |
| | $ | 0.46 |
| | $ | 0.40 |
| | $ | 0.25 |
| | $ | 0.43 |
|
Diluted (1) | $ | 0.48 |
| | $ | 0.45 |
| | $ | 0.39 |
| | $ | 0.24 |
| | $ | 0.42 |
|
| | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | |
| Basic | 51,705 |
| | 51,683 |
| | 51,634 |
| | 49,334 |
| | 43,028 |
|
Diluted (1) | 53,226 |
| | 53,226 |
| | 53,127 |
| | 50,722 |
| | 44,118 |
|
| |
(1) | We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. The impacts of adoption have been reflected in our consolidated statements of income for the three months ended December 31, 2016 and September 30, 2016, and did not have a material effect. Accordingly, adjustments were made using the modified prospective approach and resulted in, among other items, a $0.1 million decrease to net income for the three months ended December 31, 2016, and a $0.0 million increase to net |
CBF Reports Third Quarter Results
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October 19, 2017
income for the three months ended September 30, 2016. See "Adoption of New Accounting Guidance" above for additional information.
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October 19, 2017
CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands)
(Unaudited)
|
| | | | | | | | | | | |
| | Sep 30,
2017 | | Jun 30,
2017 | | Dec 31,
2016 |
| Assets | | | | | |
| Cash and due from banks | $ | 97,147 |
| | $ | 106,164 |
| | $ | 107,707 |
|
| Interest-bearing deposits in other banks | 86,982 |
| | 49,247 |
| | 201,348 |
|
| Total cash and cash equivalents | 184,129 |
| | 155,411 |
| | 309,055 |
|
| Trading securities | 4,458 |
| | 4,290 |
| | 3,791 |
|
| Investment securities available-for-sale at fair value (amortized cost $1,161,024, $1,152,613, and $927,266, respectively) | 1,155,694 |
| | 1,145,712 |
| | 912,250 |
|
| Investment securities held-to-maturity at amortized cost (fair value $415,238, $431,269, and $460,911, respectively) | 412,051 |
| | 430,411 |
| | 463,959 |
|
| Loans held for sale | 3,060 |
| | 3,533 |
| | 12,874 |
|
| Loans, net of deferred loan costs and fees | 7,609,540 |
| | 7,566,581 |
| | 7,393,318 |
|
| Less: Allowance for loan and lease losses | 45,428 |
| | 44,638 |
| | 43,065 |
|
| Loans, net | 7,564,112 |
| | 7,521,943 |
| | 7,350,253 |
|
| Other real estate owned | 44,416 |
| | 41,364 |
| | 53,482 |
|
| Premises and equipment held for sale | 17,378 |
| | 18,494 |
| | 2,599 |
|
| Premises and equipment, net | 183,734 |
| | 184,939 |
| | 205,425 |
|
| Goodwill | 231,292 |
| | 234,158 |
| | 235,500 |
|
| Intangible assets, net | 27,938 |
| | 29,750 |
| | 33,370 |
|
| Deferred income tax asset, net | 113,073 |
| | 134,452 |
| | 150,272 |
|
| Bank owned life insurance | 100,611 |
| | 100,672 |
| | 99,702 |
|
| Other assets | 98,039 |
| | 88,572 |
| | 98,125 |
|
| Total Assets | $ | 10,139,985 |
| | $ | 10,093,701 |
| | $ | 9,930,657 |
|
| Liabilities and Shareholders’ Equity | | | | | |
| Liabilities | | | | | |
| Deposits: | | | | | |
| Non-interest bearing demand | $ | 1,631,526 |
| | $ | 1,662,416 |
| | $ | 1,590,164 |
|
| Interest bearing demand | 1,846,172 |
| | 1,884,674 |
| | 1,930,143 |
|
| Money market | 1,885,180 |
| | 1,828,889 |
| | 1,725,838 |
|
| Savings | 471,931 |
| | 480,590 |
| | 497,171 |
|
| Time deposits | 2,286,815 |
| | 2,218,444 |
| | 2,137,312 |
|
| Total deposits | 8,121,624 |
| | 8,075,013 |
| | 7,880,628 |
|
| Federal Home Loan Bank advances | 440,549 |
| | 470,600 |
| | 545,701 |
|
| Short-term borrowings | 34,802 |
| | 32,637 |
| | 19,157 |
|
| Long-term borrowings | 118,929 |
| | 118,096 |
| | 116,456 |
|
| Accrued expenses and other liabilities | 69,462 |
| | 65,271 |
| | 76,668 |
|
| Total liabilities | $ | 8,785,366 |
| | $ | 8,761,617 |
| | $ | 8,638,610 |
|
| Shareholders’ equity | | | | | |
| Preferred stock $0.01 par value: 50,000 shares authorized, 0 shares issued | — |
| | — |
| | — |
|
Common stock-Class A $0.01 par value: 200,000 shares authorized, 50,632 issued and 39,365 outstanding, 46,624 issued 35,357 outstanding, and 46,178 issued and 34,911 outstanding, respectively. | 506 |
| | 466 |
| | 462 |
|
Common stock-Class B $0.01 par value: 200,000 shares authorized, 14,435 issued and 12,661 outstanding, 18,407 issued and 16,634 outstanding, and 18,627 issued and 16,854 outstanding, respectively. | 144 |
| | 184 |
| | 186 |
|
| Additional paid in capital | 1,373,227 |
| | 1,371,224 |
| | 1,368,459 |
|
| Retained earnings | 299,432 |
| | 279,914 |
| | 247,758 |
|
| Accumulated other comprehensive loss | (6,306 | ) | | (7,320 | ) | | (12,434 | ) |
| Treasury stock, at cost, 13,040, 13,040, and 13,040 shares, respectively | (312,384 | ) | | (312,384 | ) | | (312,384 | ) |
| Total shareholders’ equity | 1,354,619 |
| | 1,332,084 |
| | 1,292,047 |
|
| Total Liabilities and Shareholders’ Equity | $ | 10,139,985 |
| | $ | 10,093,701 |
| | $ | 9,930,657 |
|
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October 19, 2017
CAPITAL BANK FINANCIAL CORP.
KEY METRICS
(Dollars in thousands)
(Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Sep 30,
2017 | | Jun 30,
2017 | | Mar 31,
2017 | | Dec 31,
2016 | | Sep 30,
2016 |
| Performance Ratios | | | | | | | | | |
Interest rate spread (1) | 3.53 | % | | 3.59 | % | | 3.58 | % | | 3.53 | % | | 3.43 | % |
Net interest margin (1) | 3.71 | % | | 3.75 | % | | 3.73 | % | | 3.67 | % | | 3.58 | % |
Return on average assets (2) | 1.02 | % | | 0.95 | % | | 0.84 | % | | 0.53 | % | | 0.98 | % |
Return on average shareholders’ equity (2) | 7.66 | % | | 7.20 | % | | 6.43 | % | | 4.03 | % | | 7.25 | % |
| Efficiency ratio | 56.59 | % | | 60.24 | % | | 64.00 | % | | 78.02 | % | | 63.38 | % |
| Average interest-earning assets to average interest-bearing liabilities | 131.12 | % | | 130.70 | % | | 129.53 | % | | 130.22 | % | | 131.43 | % |
| Average loans receivable to average deposits | 93.46 | % | | 93.97 | % | | 93.41 | % | | 94.57 | % | | 98.46 | % |
Yield on interest-earning assets (1) | 4.31 | % | | 4.27 | % | | 4.21 | % | | 4.13 | % | | 4.05 | % |
| Cost of interest-bearing liabilities | 0.78 | % | | 0.69 | % | | 0.63 | % | | 0.61 | % | | 0.62 | % |
| Asset and Credit Quality Ratios-Total Loans | |
| | |
| | |
| | |
| | |
|
| Non-accrual loans | $ | 18,126 |
| | $ | 13,821 |
| | $ | 13,608 |
| | $ | 11,449 |
| | $ | 11,873 |
|
| Nonperforming purchase credit impaired loans | $ | 45,674 |
| | $ | 54,399 |
| | $ | 57,969 |
| | $ | 63,668 |
| | $ | 48,477 |
|
| Nonperforming loans to loans receivable | 0.84 | % | | 0.90 | % | | 0.95 | % | | 1.01 | % | | 1.02 | % |
| Nonperforming assets to total assets | 1.07 | % | | 1.09 | % | | 1.22 | % | | 1.30 | % | | 1.37 | % |
| ALLL to nonperforming assets | 41.85 | % | | 40.64 | % | | 35.73 | % | | 33.45 | % | | 41.29 | % |
| ALLL to loans held for investment | 0.60 | % | | 0.59 | % | | 0.58 | % | | 0.58 | % | | 0.75 | % |
| Annualized net charge-offs/average loans | 0.12 | % | | 0.08 | % | | 0.14 | % | | 0.17 | % | | 0.10 | % |
| |
(1) | Presented on a fully tax equivalent basis. |
| |
(2) | We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. The impacts of adoption have been reflected in our consolidated statements of income for the three months ended December 31, 2016 and September 30, 2016, and did not have a material effect. Accordingly, adjustments were made using the modified prospective approach and resulted in, among other items, a one basis point increase to return on average assets for the three months ended September 30, 2016. Additionally, there were changes to return on average shareholders’ equity consisting of a two basis point decrease for the three months ended December 31, 2016, and a one basis point increase for the three months ended September 30, 2016. See "Adoption of New Accounting Guidance" above for additional information. |
CBF Reports Third Quarter Results
Page 9
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
LOANS AND DEPOSITS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Sep 30,
2017 | | Jun 30,
2017 | | Mar 31,
2017 | | Dec 31,
2016 | | Sep 30,
2016 |
| Loans | | | | | | | | | |
| Non-owner occupied commercial real estate | $ | 1,293,647 |
| | $ | 1,265,576 |
| | $ | 1,187,344 |
| | $ | 1,130,883 |
| | $ | 920,521 |
|
| Other commercial construction and land | 402,250 |
| | 384,581 |
| | 350,401 |
| | 327,622 |
| | 222,794 |
|
| Multifamily commercial real estate | 148,192 |
| | 147,365 |
| | 115,996 |
| | 117,515 |
| | 76,296 |
|
| 1-4 family residential construction and land | 143,807 |
| | 153,761 |
| | 157,920 |
| | 140,030 |
| | 111,954 |
|
| Total commercial real estate | 1,987,896 |
| | 1,951,283 |
| | 1,811,661 |
| | 1,716,050 |
| | 1,331,565 |
|
| Owner occupied commercial real estate | 1,226,211 |
| | 1,287,811 |
| | 1,313,086 |
| | 1,321,405 |
| | 1,072,586 |
|
| Commercial and industrial | 1,502,939 |
| | 1,424,862 |
| | 1,443,828 |
| | 1,468,874 |
| | 1,458,523 |
|
| Lease financing | — |
| | — |
| | — |
| | — |
| | 525 |
|
| Total commercial | 2,729,150 |
| | 2,712,673 |
| | 2,756,914 |
| | 2,790,279 |
| | 2,531,634 |
|
| 1-4 family residential | 1,787,690 |
| | 1,782,799 |
| | 1,787,097 |
| | 1,714,702 |
| | 1,168,468 |
|
| Home equity loans | 481,696 |
| | 489,497 |
| | 502,099 |
| | 507,759 |
| | 364,117 |
|
| Indirect auto loans | 155,371 |
| | 174,861 |
| | 199,951 |
| | 226,717 |
| | 254,736 |
|
| Other consumer loans | 229,357 |
| | 220,946 |
| | 222,824 |
| | 222,255 |
| | 94,277 |
|
| Total consumer | 2,654,114 |
| | 2,668,103 |
| | 2,711,971 |
| | 2,671,433 |
| | 1,881,598 |
|
| Other | 241,440 |
| | 238,055 |
| | 231,409 |
| | 228,430 |
| | 191,136 |
|
| Total loans | $ | 7,612,600 |
| | $ | 7,570,114 |
| | $ | 7,511,955 |
| | $ | 7,406,192 |
| | $ | 5,935,933 |
|
| | | | | | | | | | |
| Deposits | | | | | | | |
| | |
|
| Non-interest bearing demand | $ | 1,631,526 |
| | $ | 1,662,416 |
| | $ | 1,680,243 |
| | $ | 1,590,164 |
| | $ | 1,207,800 |
|
| Interest bearing demand | 1,846,172 |
| | 1,884,674 |
| | 1,960,187 |
| | 1,930,143 |
| | 1,463,520 |
|
| Money market | 1,735,107 |
| | 1,678,842 |
| | 1,746,444 |
| | 1,651,023 |
| | 1,166,918 |
|
| Savings | 471,931 |
| | 480,590 |
| | 496,230 |
| | 497,171 |
| | 401,205 |
|
| Total core deposits | 5,684,736 |
| | 5,706,522 |
| | 5,883,104 |
| | 5,668,501 |
| | 4,239,443 |
|
| Wholesale money market | 150,073 |
| | 150,047 |
| | 75,030 |
| | 74,815 |
| | 125,030 |
|
| Time deposits | 2,286,815 |
| | 2,218,444 |
| | 2,134,473 |
| | 2,137,312 |
| | 1,668,784 |
|
| Total deposits | $ | 8,121,624 |
| | $ | 8,075,013 |
| | $ | 8,092,607 |
| | $ | 7,880,628 |
| | $ | 6,033,257 |
|
CBF Reports Third Quarter Results
Page 10
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, 2017 | | Three Months Ended
June 30, 2017 |
| | | Average
Balances | | Interest | | Yield / Rate | | Average
Balances | | Interest | | Yield / Rate |
| Interest earning assets | | | | | | | | | | | | |
Loans (1) | | $ | 7,557,263 |
| | $ | 90,064 |
| | 4.73 | % | | $ | 7,515,169 |
| | $ | 86,405 |
| | 4.61 | % |
Investment securities (1) | | 1,589,185 |
| | 9,704 |
| | 2.42 | % | | 1,596,382 |
| | 11,005 |
| | 2.77 | % |
| Interest bearing deposits in other banks | | 68,435 |
| | 198 |
| | 1.15 | % | | 42,140 |
| | 93 |
| | 0.89 | % |
Other earning assets (2) | | 28,249 |
| | 367 |
| | 5.15 | % | | 32,074 |
| | 388 |
| | 4.85 | % |
Total interest earning assets (1) | | 9,243,132 |
| | $ | 100,333 |
| | 4.31 | % | | 9,185,765 |
| | $ | 97,891 |
| | 4.27 | % |
| Non-interest earning assets | | 857,224 |
| | | | | | 884,900 |
| | | | |
| Total assets | | $ | 10,100,356 |
| | | | | | $ | 10,070,665 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 2,274,258 |
| | $ | 5,896 |
| | 1.03 | % | | $ | 2,152,086 |
| | $ | 4,789 |
| | 0.89 | % |
| Money market | | 1,858,223 |
| | 2,451 |
| | 0.52 | % | | 1,787,200 |
| | 1,963 |
| | 0.44 | % |
| Interest bearing demand | | 1,839,844 |
| | 1,296 |
| | 0.28 | % | | 1,914,622 |
| | 1,255 |
| | 0.26 | % |
| Savings | | 477,530 |
| | 219 |
| | 0.18 | % | | 488,123 |
| | 220 |
| | 0.18 | % |
| Total interest bearing deposits | | 6,449,855 |
| | 9,862 |
| | 0.61 | % | | 6,342,031 |
| | 8,227 |
| | 0.52 | % |
| Short-term borrowings and FHLB advances | | 480,830 |
| | 1,457 |
| | 1.20 | % | | 568,575 |
| | 1,433 |
| | 1.01 | % |
| Long-term borrowings | | 118,423 |
| | 2,476 |
| | 8.30 | % | | 117,576 |
| | 2,384 |
| | 8.13 | % |
| Total interest bearing liabilities | | 7,049,108 |
| | 13,795 |
| | 0.78 | % | | 7,028,182 |
| | 12,044 |
| | 0.69 | % |
| Non-interest bearing demand | | 1,636,625 |
| | | | | | 1,655,233 |
| | | | |
| Other liabilities | | 70,245 |
| | | | | | 64,318 |
| | | | |
| Shareholders’ equity | | 1,344,378 |
| | | | | | 1,322,932 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 10,100,356 |
| | | | | | $ | 10,070,665 |
| | | | |
Net interest income and spread (1) | | | | $ | 86,538 |
| | 3.53 | % | | | | $ | 85,847 |
| | 3.59 | % |
Net interest margin (1) | | | | | | 3.71 | % | | | | | | 3.75 | % |
| | | | | | | | | | | | | |
Net interest income (FTE) (1) | | | | $ | 86,538 |
| | | | | | $ | 85,847 |
| | |
| Tax equivalent adjustment | | | | (622 | ) | | | | | | (605 | ) | | |
| Net interest income | | | | $ | 85,916 |
| | | | | | $ | 85,242 |
| | |
| |
(1) | Presented on a fully tax equivalent basis. |
| |
(2) | Includes Federal Home Loan Bank stocks. |
CBF Reports Third Quarter Results
Page 11
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, 2017 | | Three Months Ended
September 30, 2016 |
| | | Average
Balances | | Interest | | Yield / Rate | | Average
Balances | | Interest | | Yield / Rate |
| Interest earning assets | | | | | | | | | | | | |
Loans (1) | | $ | 7,557,263 |
| | $ | 90,064 |
| | 4.73 | % | | $ | 5,786,171 |
| | $ | 64,055 |
| | 4.40 | % |
Investment securities (1) | | 1,589,185 |
| | 9,704 |
| | 2.42 | % | | 1,133,031 |
| | 6,924 |
| | 2.43 | % |
| Interest bearing deposits in other banks | | 68,435 |
| | 198 |
| | 1.15 | % | | 60,373 |
| | 69 |
| | 0.45 | % |
Other earning assets (2) | | 28,249 |
| | 367 |
| | 5.15 | % | | 29,788 |
| | 337 |
| | 4.50 | % |
Total interest earning assets (1) | | 9,243,132 |
| | $ | 100,333 |
| | 4.31 | % | | 7,009,363 |
| | $ | 71,385 |
| | 4.05 | % |
| Non-interest earning assets | | 857,224 |
| | | | | | 583,413 |
| | | | |
| Total assets | | $ | 10,100,356 |
| | | | | | $ | 7,592,776 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 2,274,258 |
| | $ | 5,896 |
| | 1.03 | % | | $ | 1,613,502 |
| | $ | 3,992 |
| | 0.98 | % |
| Money market | | 1,858,223 |
| | 2,451 |
| | 0.52 | % | | 1,225,743 |
| | 1,132 |
| | 0.37 | % |
| Interest bearing demand | | 1,839,844 |
| | 1,296 |
| | 0.28 | % | | 1,444,305 |
| | 752 |
| | 0.21 | % |
| Savings | | 477,530 |
| | 219 |
| | 0.18 | % | | 404,187 |
| | 205 |
| | 0.20 | % |
| Total interest bearing deposits | | 6,449,855 |
| | 9,862 |
| | 0.61 | % | | 4,687,737 |
| | 6,081 |
| | 0.52 | % |
| Short-term borrowings and FHLB advances | | 480,830 |
| | 1,457 |
| | 1.20 | % | | 558,313 |
| | 635 |
| | 0.45 | % |
| Long-term borrowings | | 118,423 |
| | 2,476 |
| | 8.30 | % | | 87,095 |
| | 1,586 |
| | 7.24 | % |
| Total interest bearing liabilities | | 7,049,108 |
| | 13,795 |
| | 0.78 | % | | 5,333,145 |
| | 8,302 |
| | 0.62 | % |
| Non-interest bearing demand | | 1,636,625 |
| | | | | | 1,188,771 |
| | | | |
| Other liabilities | | 70,245 |
| | | | | | 48,997 |
| | | | |
| Shareholders’ equity | | 1,344,378 |
| | | | | | 1,021,863 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 10,100,356 |
| | | | | | $ | 7,592,776 |
| | | | |
Net interest income and spread (1) | | | | $ | 86,538 |
| | 3.53 | % | | | | $ | 63,083 |
| | 3.43 | % |
Net interest margin (1) | | | | | | 3.71 | % | | | | | | 3.58 | % |
| | | | | | | | | | | | | |
Net interest income (FTE) (1) | | | | $ | 86,538 |
| | | | | | $ | 63,083 |
| | |
| Tax equivalent adjustment | | | | (622 | ) | | | | | | (456 | ) | | |
| Net interest income | | | | $ | 85,916 |
| | | | | | $ | 62,627 |
| | |
| |
(1) | Presented on a fully tax equivalent basis. |
| |
(2) | Includes Federal Home Loan Bank stocks. |
CBF Reports Third Quarter Results
Page 12
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended
September 30, 2017 | | Nine Months Ended
September 30, 2016 |
| | | Average
Balances | | Interest | | Yield / Rate | | Average
Balances | | Interest | | Yield / Rate |
| Interest earning assets | | | | | | | | | | | | |
Loans (1) | | $ | 7,494,448 |
| | $ | 260,222 |
| | 4.64 | % | | $ | 5,684,143 |
| | $ | 190,063 |
| | 4.47 | % |
Investment securities (1) | | 1,562,781 |
| | 30,022 |
| | 2.57 | % | | 1,129,129 |
| | 20,020 |
| | 2.37 | % |
| Interest bearing deposits in other banks | | 56,319 |
| | 388 |
| | 0.92 | % | | 66,100 |
| | 227 |
| | 0.46 | % |
Other earning assets (2) | | 29,789 |
| | 1,113 |
| | 4.99 | % | | 27,216 |
| | 981 |
| | 4.81 | % |
Total interest earning assets (1) | | 9,143,337 |
| | $ | 291,745 |
| | 4.27 | % | | 6,906,588 |
| | $ | 211,291 |
| | 4.09 | % |
| Non-interest earning assets | | 883,562 |
| | | | | | 602,904 |
| | | | |
| Total assets | | $ | 10,026,899 |
| | | | | | $ | 7,509,492 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 2,189,869 |
| | $ | 15,224 |
| | 0.93 | % | | $ | 1,640,959 |
| | $ | 12,130 |
| | 0.99 | % |
| Money market | | 1,807,885 |
| | 6,171 |
| | 0.46 | % | | 1,219,227 |
| | 3,227 |
| | 0.35 | % |
| Interest bearing demand | | 1,892,081 |
| | 3,689 |
| | 0.26 | % | | 1,422,389 |
| | 2,149 |
| | 0.20 | % |
| Savings | | 486,668 |
| | 659 |
| | 0.18 | % | | 411,729 |
| | 640 |
| | 0.21 | % |
| Total interest bearing deposits | | 6,376,503 |
| | 25,743 |
| | 0.54 | % | | 4,694,304 |
| | 18,146 |
| | 0.52 | % |
| Short-term borrowings and FHLB advances | | 514,303 |
| | 3,777 |
| | 0.98 | % | | 501,892 |
| | 1,680 |
| | 0.45 | % |
| Long-term borrowings | | 117,587 |
| | 7,140 |
| | 8.12 | % | | 86,860 |
| | 4,644 |
| | 7.14 | % |
| Total interest bearing liabilities | | 7,008,393 |
| | 36,660 |
| | 0.70 | % | | 5,283,056 |
| | 24,470 |
| | 0.62 | % |
| Non-interest bearing demand | | 1,629,334 |
| | | | | | 1,171,599 |
| | | | |
| Other liabilities | | 66,787 |
| | | | | | 44,593 |
| | | | |
| Shareholders’ equity | | 1,322,385 |
| | | | | | 1,010,244 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 10,026,899 |
| | | | | | $ | 7,509,492 |
| | | | |
Net interest income and spread (1) | | | | $ | 255,085 |
| | 3.57 | % | | | | $ | 186,821 |
| | 3.47 | % |
Net interest margin (1) | | | | | | 3.73 | % | | | | | | 3.61 | % |
| | | | | | | | | | | | | |
Net interest income (FTE) (1) | | | | $ | 255,085 |
| | | | | | $ | 186,821 |
| | |
| Tax equivalent adjustment | | | | (1,811 | ) | | | | | | (1,312 | ) | | |
| Net interest income | | | | $ | 253,274 |
| | | | | | $ | 185,509 |
| | |
| |
(1) | Presented on a fully tax equivalent basis. |
| |
(2) | Includes Federal Home Loan Bank stocks. |
CBF Reports Third Quarter Results
Page 13
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| CORE NET INCOME | | Three Months Ended |
| | | Sep 30, 2017 | | Jun 30, 2017 | | Dec 31, 2016 |
Net Income (1) | | $ | 25,758 |
| | $ | 25,758 |
| | $ | 23,806 |
| | $ | 23,806 |
| | $ | 12,352 |
| | $ | 12,352 |
|
| | | Pre-Tax | | After-Tax | | Pre-Tax | | After-Tax | | Pre-Tax | | After-Tax |
| Adjustments | | |
| | |
| | |
| | |
| | |
| | |
|
| Non-interest income | | |
| | |
| | |
| | |
| | |
| | |
|
Less: Securities gains, net (2) | | (98 | ) | | (61 | ) | | (70 | ) | | (43 | ) | | (1,894 | ) | | (1,170 | ) |
| Non-interest expense | | | | | | | | | | | | |
Conversion and merger related expense tax deductible, net (2) | | 589 |
| | 364 |
| | (237 | ) | | (146 | ) | | 18,245 |
| | 11,270 |
|
| Conversion and merger related expense non-tax deductible | | 2 |
| | 2 |
| | 1,218 |
| | 1,218 |
| | 280 |
| | 280 |
|
Restructuring expense (2) | | 595 |
| | 367 |
| | 2,978 |
| | 1,840 |
| | 4 |
| | 3 |
|
Legal Settlement (2) | | — |
| | — |
| | 45 |
| | 28 |
| | 1,361 |
| | 841 |
|
| Tax Adjustment | | — |
| | — |
| | — |
| | — |
| | (1,350 | ) | | (1,350 | ) |
Severance expense (2) | | 33 |
| | 21 |
| | — |
| | — |
| | 7 |
| | 4 |
|
Tax effect of adjustments (2) | | (428 | ) | | N/A |
| | (1,037 | ) | | N/A |
| | (6,775 | ) | | N/A |
|
Core Net Income (1) | | $ | 26,451 |
| | $ | 26,451 |
| | $ | 26,703 |
| | $ | 26,703 |
| | $ | 22,230 |
| | $ | 22,230 |
|
| | | | | | | | | | | | | |
Diluted shares (1) | | 53,226 |
| | | | 53,226 |
| | | | 50,722 |
| | |
Core Net Income per share (1) | | $ | 0.50 |
| | | | $ | 0.50 |
| | | | $ | 0.44 |
| | |
| Average Assets | | 10,100,356 |
| | |
| | 10,070,665 |
| | |
| | 9,329,334 |
| | |
|
| | | | | | | | | | | | | |
ROA (1) (3) | | 1.02 | % | |
|
| | 0.95 | % | |
|
| | 0.53 | % | |
|
|
Core ROA (1) (4) | | 1.05 | % | | | | 1.06 | % | | | | 0.95 | % | | |
| |
(1) | We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. The impacts of adoption have been reflected in our consolidated statements of income for the three months ended December 31, 2016, and did not have a material effect. Accordingly, adjustments were made using the modified prospective approach and resulted in, among other items, a $0.1 million decrease to net income and core net income as well as a one basis point decrease to core ROA for the three months ended December 31, 2016. See "Adoption of New Accounting Guidance" above for additional information. |
| |
(2) | Tax effected at a blended income tax rate of 38%. |
| |
(3) | ROA: Annualized net income / Average assets. |
| |
(4) | Core ROA: Annualized core net income / Average assets. |
CBF Reports Third Quarter Results
Page 14
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES (Continuation)
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| CORE EFFICIENCY RATIO | Three Months Ended |
| | Sep 30,
2017 | | Jun 30,
2017 | | Mar 31,
2017 | | Dec 31,
2016 | | Sep 30,
2016 |
| Net interest income | $ | 85,916 |
| | $ | 85,242 |
| | $ | 82,116 |
| | $ | 77,819 |
| | $ | 62,627 |
|
| | | | | | | | | | |
| Reported non-interest income | 14,773 |
| | 16,000 |
| | 15,852 |
| | 17,016 |
| | 12,370 |
|
| Less: Securities gains, net | 98 |
| | 70 |
| | 67 |
| | 1,894 |
| | 71 |
|
| Core non-interest income | $ | 14,675 |
| | $ | 15,930 |
| | $ | 15,785 |
| | $ | 15,122 |
| | $ | 12,299 |
|
| | | | | | | | | | |
| Reported non-interest expense | $ | 56,984 |
| | $ | 60,985 |
| | $ | 62,703 |
| | $ | 73,994 |
| | $ | 47,530 |
|
| Less: Conversion and merger related expense tax deductible, net | 589 |
| | (237 | ) | | 3,037 |
| | 18,245 |
| | 331 |
|
| Conversion and merger related expense non-tax deductible | 2 |
| | 1,218 |
| | — |
| | 280 |
| | 61 |
|
| Restructuring expense, net | 595 |
| | 2,978 |
| | 1,912 |
| | 4 |
| | (113 | ) |
| Legal settlement | — |
| | 45 |
| | — |
| | 1,361 |
| | 1,500 |
|
| Severance expense | 33 |
| | — |
| | — |
| | 7 |
| | — |
|
| Core non-interest expense | $ | 55,765 |
| | $ | 56,981 |
| | $ | 57,754 |
| | $ | 54,097 |
| | $ | 45,751 |
|
| | | | | | | | | | |
Efficiency ratio (1) | 56.59 | % | | 60.24 | % | | 64.00 | % | | 78.02 | % | | 63.38 | % |
Core efficiency ratio (2) | 55.44 | % | | 56.32 | % | | 58.99 | % | | 58.21 | % | | 61.06 | % |
| |
(1) | Efficiency Ratio: Non-interest expense / (Non-interest income + Net interest income). |
| |
(2) | Core Efficiency Ratio: Core non-interest expense / (Core non-interest income + Net interest income). |
CBF Reports Third Quarter Results
Page 15
October 19, 2017
CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES (Continuation)
(Dollars and shares in thousands, except per share data)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| TANGIBLE BOOK VALUE | | Three Months Ended |
| | | Sep 30,
2017 | | Jun 30,
2017 | | Mar 31,
2017 | | Dec 31,
2016 | | Sep 30,
2016 |
| Total shareholders’ equity | | $ | 1,354,619 |
| | $ | 1,332,084 |
| | $ | 1,307,931 |
| | $ | 1,292,047 |
| | $ | 1,029,841 |
|
| Less: goodwill | | (231,292 | ) | | (234,158 | ) | | (234,158 | ) | | (235,500 | ) | | (134,522 | ) |
| Less: intangibles | | (27,938 | ) | | (29,750 | ) | | (31,553 | ) | | (33,370 | ) | | (12,288 | ) |
Tax effect on intangible assets (1) | | 10,480 |
| | 11,159 |
| | 12,003 |
| | 12,694 |
| | 4,669 |
|
Tangible book value (2) | | $ | 1,105,869 |
| | $ | 1,079,335 |
| | $ | 1,054,223 |
| | $ | 1,035,871 |
| | $ | 887,700 |
|
| Common shares outstanding | | 52,027 |
| | 51,991 |
| | 51,966 |
| | 51,765 |
| | 43,235 |
|
| Book Value per share | | $ | 26.04 |
| | $ | 25.62 |
|
| $ | 25.17 |
| | $ | 24.96 |
| | $ | 23.82 |
|
| Tangible book value per share | | $ | 21.26 |
| | $ | 20.76 |
| | $ | 20.29 |
| | $ | 20.01 |
| | $ | 20.53 |
|
| |
(1) | Tax effected at a blended income tax rate of 38%. |
| |
(2) | Tangible book value is equal to shareholders’ equity less goodwill and intangibles net of taxes. |
