Exhibit 99.1
For further information:
David T. Provost, CEO
Dennis L. Klaeser, CFO
989-839-5350
Chemical Financial Corporation Reports 2017 Third Quarter Operating Results
MIDLAND, MI, October 24, 2017 -- Chemical Financial Corporation ("Corporation" or "Chemical") (NASDAQ:CHFC) today announced 2017 third quarter net income of $40.5 million, or $0.56 per diluted share, compared to 2017 second quarter net income of $52.0 million, or $0.73 per diluted share and 2016 third quarter net income of $11.5 million, or $0.23 per diluted share. Excluding merger and restructuring expenses and the change in fair value in loan servicing rights ("significant items"), net income in the third quarter of 2017 was $56.9 million, or $0.79 per diluted share, compared to $53.5 million, or $0.75 per diluted share, in the second quarter of 2017 and $37.4 million, or $0.75 per diluted share, in the third quarter of 2016.(1)
During the third quarter of 2017, significant items included restructuring expenses of $18.8 million, merger expenses of $2.4 million and a $4.0 million detriment to earnings due to the change in fair value in loan servicing rights, compared to merger expenses of $0.5 million and a $1.8 million detriment to earnings due to the change in fair value in loan servicing rights in the second quarter of 2017. The restructuring expenses incurred during the third quarter of 2017 were a result of the Corporation's previously announced restructuring efforts, consisting primarily of severance and retirement related expenses. The third quarter of 2016 included $37.5 million of merger expenses and a $1.2 million detriment to earnings due to the change in fair value in loan servicing rights.
"We are pleased with our core underlying trends this quarter, including increased net interest income, improved operating efficiency and a stable net interest margin," noted David T. Provost, Chief Executive Officer of Chemical Financial Corporation and Thomas C. Shafer, Vice Chairman of the Corporation and Chief Executive Officer of Chemical Bank. "With the enhancements we have made in the third quarter of 2017 in association with our restructuring efforts, we believe we are on target to achieve the long-term growth prospects established as part of our most recent merger performance targets."
The Corporation's return on average assets was 0.86% during the third quarter of 2017, compared to 1.14% during the second quarter of 2017 and 0.37% in the third quarter of 2016. The Corporation's return on average shareholders' equity was 6.1% in the third quarter of 2017, compared to 8.0% during the second quarter of 2017 and 2.9% in the third quarter of 2016. Excluding significant items, the Corporation's return on average assets was 1.21% during the third quarter of 2017, compared to 1.17% during the second quarter of 2017 and 1.22% in the third quarter of 2016 and, excluding significant items, the Corporation's return on average shareholders' equity was 8.6% in the third quarter of 2017, compared to 8.2% during the second quarter of 2017 and 9.6% in the third quarter of 2016. The Corporation's return on average tangible shareholders' equity was 10.9% in the third quarter of 2017, compared to 14.3% during the second quarter of 2017 and 4.7% in the third quarter of 2016. Excluding significant items, the Corporation's return on average tangible equity was 15.3% in the third quarter of 2017, compared to 14.7% during the second quarter of 2017 and 15.4% in the third quarter of 2016.(2)
Net interest income was $143.6 million in the third quarter of 2017, $5.7 million, or 4.1%, higher than the second quarter of 2017 and $46.8 million, or 48.4%, higher than the third quarter of 2016. The higher net interest income in the third quarter of 2017 compared to the second quarter of 2017 was driven by the positive impact of organic loan growth, an increase in the investment securities portfolio, improvement in yields on loans, and one additional day in the quarter. These benefits to net interest income were partially offset by the interest expense impact of increases in average deposits and short-term borrowings. The increase in net interest income in the third quarter of 2017 over the third quarter of 2016 was primarily attributable to organic loan growth and loans acquired in the merger with Talmer Bancorp, Inc. ("Talmer"). The Corporation experienced net organic loan growth of $166.0 million during the third quarter of 2017 and $1.12 billion during the twelve months ended September 30, 2017. The merger with Talmer added $4.88 billion of loans on August 31, 2016.
The net interest margin was 3.40% in the third quarter of 2017, compared to 3.41% in the second quarter of 2017 and 3.49% in the third quarter of 2016. The net interest margin (on a tax-equivalent basis) was 3.48% in both the third quarter of 2017 and second quarter of 2017, compared to 3.58% in the third quarter of 2016.(3) The net interest
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margin (on a tax-equivalent basis) in the third quarter of 2017, compared to the second quarter of 2017, was compressed due to an increase in the investment securities portfolio funded by an increase in average borrowings and time deposits. This compression was offset by an increase of 9 basis points in yield on total loans in the third quarter of 2017 to 4.31%, compared to the second quarter of 2017, primarily due to higher yields on originated loans and the benefit from interest rate adjustments on variable rate loans during the third quarter of 2017.
The provision for loan losses was $5.5 million in the third quarter of 2017, compared to $6.2 million in the second quarter of 2017 and $4.1 million in the third quarter of 2016. The decrease in the provision for loan losses in the third quarter of 2017, compared to the second quarter of 2017, was primarily the result of a lower amount of net organic loan growth in addition to improvements in collateral position of loans that are individually evaluated for impairment, partially offset by $0.6 million of impairment recorded during the third quarter of 2017 as a result of the quarterly re-estimation of cash flows of the acquired loan portfolio. The increase in provision for loan losses in the third quarter of 2017, compared to the third quarter of 2016, was primarily the result of an increase in originated loan growth. Originated loan growth was $496.5 million in the third quarter of 2017, compared to $699.9 million in the second quarter of 2017 and $377.0 million in the third quarter of 2016. The growth in the originated loan portfolio was partially offset by run-off in the acquired loan portfolio of $330.5 million in the third quarter of 2017, compared to $305.9 million in the second quarter of 2017 and $190.9 million in the third quarter of 2016. All acquired loans were recorded at their estimated fair value at each respective acquisition date without a carryover of the related allowance and, as of September 30, 2017, the allowance recorded for this population of loans was $0.6 million, reflecting impairment recorded during the third quarter of 2017.
Net loan charge-offs were $3.5 million, or 0.10% of average loans, in the third quarter of 2017, compared to $1.2 million, or 0.04% of average loans, in the second quarter of 2017 and $1.8 million, or 0.08% of average loans, in the third quarter of 2016. The increase in charge-offs in the third quarter of 2017 was primarily due to one commercial loan relationship.
The Corporation's nonperforming loans totaled $54.3 million at September 30, 2017, compared to $50.9 million at June 30, 2017 and $41.3 million at September 30, 2016. Nonperforming loans comprised 0.39% of total loans at September 30, 2017, compared to 0.37% at June 30, 2017 and 0.32% at September 30, 2016. The increase in the percentage of nonperforming loans to total loans at September 30, 2017, compared to June 30, 2017, was primarily due to an increase in commercial real estate nonaccrual loans.
At September 30, 2017, the allowance for loan losses was $85.8 million, including $85.2 million for the originated loan portfolio and $0.6 million for the acquired loan portfolio. The allowance for loan losses for the originated loan portfolio was $85.2 million, or 0.93% of originated loans at September 30, 2017, compared to $83.8 million, or 0.97% of originated loans, at June 30, 2017 and $73.8 million, or 1.09% of originated loans, at September 30, 2016. The reduction in the allowance for loan losses as a percentage of originated loans primarily reflects improvement in collateral position of loans individually evaluated for impairment. The allowance for loan losses of the originated loan portfolio as a percentage of nonperforming loans was 156.9% at September 30, 2017, compared to 164.7% at June 30, 2017 and 178.6% at September 30, 2016. The allowance for loan losses for the acquired loan portfolio of $0.6 million was established during the third quarter of 2017 due to impairment identified in the quarterly re-estimation of cash flows.
Noninterest income was $32.1 million in the third quarter of 2017, compared to $41.6 million in the second quarter of 2017 and $27.8 million in the third quarter of 2016. Noninterest income in the third quarter of 2017 decreased compared to the second quarter of 2017, primarily due to decreases in net gain on sale of loans and other mortgage banking revenue of $4.6 million and other charges and fees for customer services of $3.1 million. The decrease in net gain on sale of loans and other mortgage banking revenue, included a $4.0 million detriment to earnings due to a change in fair value in loan servicing rights in the third quarter of 2017, compared to a $1.8 million detriment in the second quarter of 2017. The decrease in other charges and fees for customers services in the third quarter of 2017, compared to the second quarter of 2017, was primarily due to a reduction in interchange fees resulting from limitations set by the Durbin amendment, which became effective for the Corporation July 1, 2017.
Operating expenses were $119.5 million in the third quarter of 2017, compared to $98.2 million in the second quarter of 2017 and $106.1 million in the third quarter of 2016. Operating expenses included merger and restructuring expenses of $21.2 million in the third quarter of 2017, $0.5 million in the second quarter of 2017 and $37.5 million
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in the third quarter of 2016. The increase in merger and restructuring expenses in the third quarter of 2017, compared to the second quarter of 2017, was primarily due to the Corporation's previously announced restructuring efforts. Third quarter of 2017 other operating expenses included $3.1 million of impairment related to a federal housing tax credit placed into service in the third quarter of 2017. Excluding merger and restructuring expenses and the impairment of federal housing tax credit, core operating expenses were $95.2 million in the third quarter of 2017, a decrease of $2.5 million compared to the second quarter of 2017.(4) We expect a decline in operating expenses from the previously announced restructuring efforts to be evident in the fourth quarter of 2017.
The Corporation's effective tax rate was 20.2% in the third quarter of 2017, compared to 30.7% in the second quarter of 2017 and 19.9% in the third quarter of 2016. The tax rate for the third quarter of 2017 benefited from a federal housing tax credit placed into service during the quarter. The income tax benefit from the tax credit placed into service was partially offset by the impairment recorded on the same tax credit included within other operating expenses. The tax rate for the third quarter of 2016 benefited from stock option exercises that occurred in the third quarter of 2016.
The efficiency ratio is a measure of operating expenses as a percentage of net interest income and noninterest income. The Corporation's efficiency ratio was 68.0% in the third quarter of 2017, compared to 54.7% in the second quarter of 2017 and 85.2% in the third quarter of 2016. The Corporation's adjusted efficiency ratio, which excludes significant items, amortization of intangibles, impairment of income tax credits, the net interest income FTE adjustment and gains from sale of investment securities and closed branch locations, was 51.2% in the third quarter of 2017, compared to 52.2% in the second quarter of 2017 and 52.7% in the third quarter of 2016.(5)
Total assets were $19.35 billion at September 30, 2017, compared to $18.78 billion at June 30, 2017 and $17.38 billion at September 30, 2016. The increase in total assets during the three months ended September 30, 2017 was primarily attributable to an increase in investment securities and loan growth that was funded primarily by an increase in deposits. During the quarter, the investment securities portfolio grew by $273.8 million to $2.69 billion at September 30, 2017. The increase in total assets during the twelve months ended September 30, 2017 was primarily attributable to organic loan growth and an increase in investment securities.
Total loans were $13.83 billion at September 30, 2017, an increase of $166.0 million, or 1.2%, from total loans of $13.67 billion at June 30, 2017 and an increase of $1.12 billion, or 8.8%, from total loans of $12.72 billion at September 30, 2016. The Corporation experienced organic loan growth of $166.0 million during the third quarter of 2017 and $1.12 billion during the twelve months ended September 30, 2017.
Total deposits were $13.81 billion at September 30, 2017, compared to $13.20 billion at June 30, 2017 and $13.27 billion at September 30, 2016. The increase in deposits during the three months ended September 30, 2017 was primarily due to an increase in interest-bearing demand accounts and other time deposits. The Corporation experienced organic growth in customer deposits of $591.8 million during the third quarter of 2017.
Securities sold under agreements to repurchase with customers were $414.6 million at September 30, 2017, compared to $310.0 million at June 30, 2017 and $326.8 million at September 30, 2016. Short-term borrowings were $1.90 billion at September 30, 2017, compared to $2.05 billion at June 30, 2017 and $400.0 million at September 30, 2016 and consisted of short-term FHLB advances utilized by the Corporation to fund short-term liquidity needs. Long-term borrowings were $397.8 million at September 30, 2017, compared to $435.9 million at June 30, 2017 and $676.6 million at September 30, 2016.
The Corporation's shareholders' equity to total assets ratio was 13.8% at September 30, 2017, compared to 14.1% at June 30, 2017 and 14.7% at September 30, 2016. The Corporation's tangible equity to tangible assets ratio and total risk-based capital ratio were 8.3% and 11.2% (estimated), respectively, at September 30, 2017 compared to 8.4% and 11.1%, respectively, at June 30, 2017 and 8.7% and 11.1%, respectively, at September 30, 2016. (6) The Corporation's book value was $37.57 per share at September 30, 2017, compared to $37.11 per share at June 30, 2017 and $36.37 per share at September 30, 2016. The Corporation's tangible book value was $21.36 per share at September 30, 2017, compared to $20.89 per share at June 30, 2017 and $19.99 per share at September 30, 2016.(7)
(1) Net income, excluding significant items, and diluted earnings per share, excluding significant items, are non-GAAP financial measures. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables
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entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measures. For the fourth quarter of 2016, "significant items" also includes gain on sales of branch offices.
(2) Return on average assets, excluding significant items, return on average shareholders’ equity, excluding significant items, and return on average tangible shareholders' equity, excluding significant items, are non-GAAP financial measures. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measures.
(3) Net interest margin, on a tax equivalent basis, is a non-GAAP financial measure. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Average Balances, Fully Tax Equivalent (FTE) Interest and Effective Yields and Rates" for a reconciliation of net interest income used to compute net interest margin on a tax equivalent basis to the most directly comparable GAAP financial measure.
(4) Core operating expenses, excluding merger and restructuring expenses and impairment of federal housing tax credits is a non-GAAP financial measure. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measures.
(5) Adjusted efficiency ratio is a non-GAAP financial measure, which excludes significant items, amortization of intangibles, impairment of income tax credits, net interest income FTE adjustment, gains from sale of investment securities and closed branch locations. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measure.
(6) Tangible equity to tangible assets ratio is a non-GAAP financial measure. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measure.
(7) Tangible book value per share is a non-GAAP financial measure. Please refer to the section entitled "Non-GAAP Financial Measures" in this press release and to the financial tables entitled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measure.
Conference Call Details
Chemical Financial Corporation will host a conference call to discuss its third quarter 2017 operating results on Wednesday, October 25, 2017, at 10:30 a.m. ET. Anyone interested may access the conference call on a live basis by dialing toll-free at 1-844-616-0064 and entering 658387 for the conference ID. The call will also be broadcast live over the Internet hosted at Chemical Financial Corporation's website at www.chemicalbank.com under the "Investor Info" section. A copy of the slide-show presentation and an audio replay of the call will remain available on Chemical Financial Corporation's website for at least 14 days.
About Chemical Financial Corporation
Chemical Financial Corporation is the largest banking company headquartered and operating branch offices in Michigan. The Corporation operates through its subsidiary bank, Chemical Bank, with 236 banking offices located primarily in Michigan, northeast Ohio and northern Indiana. At September 30, 2017, the Corporation had total assets of $19.35 billion. Chemical Financial Corporation's common stock trades on The NASDAQ Stock Market under the symbol CHFC and is one of the issuers comprising The NASDAQ Global Select Market and the S&P MidCap 400 Index. More information about the Corporation is available by visiting the investor relations section of its website at www.chemicalbank.com.
Non-GAAP Financial Measures
This press release contains references to financial measures which are not defined in generally accepted accounting principles ("GAAP"). Such non-GAAP financial measures include the Corporation's tangible equity to tangible assets ratio, tangible book value per share, presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis, operating expenses-core (which excludes merger and restructuring expenses and impairment of income tax credits), operating expenses-efficiency ratio (which excludes merger and restructuring expenses, impairment of income tax credits and amortization of intangibles), the adjusted efficiency ratio (which excludes significant items, impairment of income tax credits, amortization of intangibles, net interest income FTE adjustments, gains from sale of investment securities and closed branch locations) and other information presented
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excluding significant items, including net income, diluted earnings per share, return on average assets and return on average shareholders' equity.
These non-GAAP financial measures have been included as the Corporation believes they are helpful for investors to analyze and evaluate the Corporation's financial condition. However, these non-GAAP financial measures have inherent limitations and should not be considered in isolation or as a substitute for GAAP measures. In addition, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP historical measures in this press release with other companies non-GAAP financial measures. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measure may be found in the financial tables included with this press release.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and the Corporation. Words and phrases such as "anticipates," "believes," "continue," "estimates," "expects," "forecasts," "future," "intends," "is likely," "judgment," "look ahead," "look forward," "on schedule," "opinion," "opportunity," "plans," "potential," "predicts," "probable," "projects," "should," "strategic," "trend," "will," and variations of such words and phrases or similar expressions are intended to identify such forward-looking statements. These statements include, among others, statements related to our belief that we are on target to achieve the long-term growth prospects established as part of our most recent merger performance targets and our expectations regarding operating expenses related to our restructuring efforts. . All statements referencing future time periods are forward-looking.
Management's determination of the provision and allowance for loan losses; the carrying value of acquired loans, goodwill and mortgage servicing rights; the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment); and management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated. All of the information concerning interest rate sensitivity is forward-looking. The future effect of changes in the financial and credit markets and the national and regional economies on the banking industry, generally, and on the Corporation, specifically, are also inherently uncertain.
Forward-looking statements are based upon current beliefs and expectations and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Accordingly, such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise. Risk factors include, without limitation, a downturn in the economy, particularly in our markets, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate value, regulatory changes, excessive loan losses, the Corporation's inability to attract and retain new commercial lenders and other bankers as well as key operations staff in light of competition for experienced employees in the banking industry, the Corporation's inability to grow its deposits while reducing the number of physical branches that is operates, and negative reactions to the restructuring efforts by Chemical Bank's customers, employees and other counterparties.
In addition, risk factors include, but are not limited to, the risk factors described in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2016. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
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Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| September 30, 2017 | June 30, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents: | |||||||||||||||
| Cash and cash due from banks | $ | 223,498 | $ | 230,219 | $ | 237,758 | $ | 286,351 | |||||||
| Interest-bearing deposits with the Federal Reserve Bank and other banks and federal funds sold | 485,713 | 389,022 | 236,644 | 270,216 | |||||||||||
| Total cash and cash equivalents | 709,211 | 619,241 | 474,402 | 556,567 | |||||||||||
| Investment securities: | |||||||||||||||
| Available-for-sale | 2,029,672 | 1,767,478 | 1,234,964 | 1,303,381 | |||||||||||
| Held-to-maturity | 657,176 | 645,605 | 623,427 | 563,721 | |||||||||||
| Total investment securities | 2,686,848 | 2,413,083 | 1,858,391 | 1,867,102 | |||||||||||
| Loans held-for-sale | 87,198 | 65,371 | 81,830 | 276,061 | |||||||||||
| Loans: | |||||||||||||||
| Total loans | 13,833,368 | 13,667,372 | 12,990,779 | 12,715,789 | |||||||||||
| Allowance for loan losses | (85,760 | ) | (83,797 | ) | (78,268 | ) | (73,775 | ) | |||||||
| Net loans | 13,747,608 | 13,583,575 | 12,912,511 | 12,642,014 | |||||||||||
| Premises and equipment | 141,550 | 146,460 | 145,012 | 144,165 | |||||||||||
| Loan servicing rights | 62,195 | 64,522 | 58,315 | 51,393 | |||||||||||
| Goodwill | 1,134,568 | 1,133,534 | 1,133,534 | 1,137,166 | |||||||||||
| Other intangible assets | 35,797 | 37,322 | 40,211 | 35,700 | |||||||||||
| Interest receivable and other assets | 749,333 | 718,297 | 650,973 | 673,469 | |||||||||||
| Total Assets | $ | 19,354,308 | $ | 18,781,405 | $ | 17,355,179 | $ | 17,383,637 | |||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 3,688,848 | $ | 3,626,592 | $ | 3,341,520 | $ | 3,264,934 | |||||||
| Interest-bearing | 10,116,397 | 9,577,775 | 9,531,602 | 10,007,928 | |||||||||||
| Total deposits | 13,805,245 | 13,204,367 | 12,873,122 | 13,272,862 | |||||||||||
| Interest payable and other liabilities | 163,532 | 141,702 | 134,637 | 143,708 | |||||||||||
| Securities sold under agreements to repurchase with customers | 414,597 | 310,042 | 343,047 | 326,789 | |||||||||||
| Short-term borrowings | 1,900,000 | 2,050,000 | 825,000 | 400,000 | |||||||||||
| Long-term borrowings | 397,845 | 435,852 | 597,847 | 676,612 | |||||||||||
| Total liabilities | 16,681,219 | 16,141,963 | 14,773,653 | 14,819,971 | |||||||||||
| Shareholders' Equity | |||||||||||||||
| Preferred stock, no par value per share | — | — | — | — | |||||||||||
| Common stock, $1 par value per share | 71,152 | 71,131 | 70,599 | 70,497 | |||||||||||
| Additional paid-in capital | 2,201,334 | 2,197,501 | 2,210,762 | 2,206,182 | |||||||||||
| Retained earnings | 425,433 | 404,939 | 340,201 | 312,129 | |||||||||||
| Accumulated other comprehensive loss | (24,830 | ) | (34,129 | ) | (40,036 | ) | (25,142 | ) | |||||||
| Total shareholders' equity | 2,673,089 | 2,639,442 | 2,581,526 | 2,563,666 | |||||||||||
| Total Liabilities and Shareholders' Equity | $ | 19,354,308 | $ | 18,781,405 | $ | 17,355,179 | $ | 17,383,637 | |||||||
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Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and fees on loans | $ | 148,771 | $ | 141,314 | $ | 97,103 | $ | 422,570 | $ | 249,082 | |||||||||
| Interest on investment securities: | |||||||||||||||||||
| Taxable | 9,326 | 7,125 | 2,575 | 21,207 | 6,302 | ||||||||||||||
| Tax-exempt | 4,577 | 4,426 | 3,072 | 13,238 | 8,377 | ||||||||||||||
| Dividends on nonmarketable equity securities | 1,039 | 1,246 | 358 | 2,906 | 1,391 | ||||||||||||||
| Interest on deposits with the Federal Reserve Bank and other banks and federal funds sold | 1,231 | 1,022 | 454 | 3,052 | 811 | ||||||||||||||
| Total interest income | 164,944 | 155,133 | 103,562 | 462,973 | 265,963 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Interest on deposits | 12,926 | 10,582 | 5,836 | 32,424 | 14,155 | ||||||||||||||
| Interest on short-term borrowings | 6,591 | 4,659 | 459 | 12,908 | 785 | ||||||||||||||
| Interest on long-term borrowings | 1,799 | 1,944 | 458 | 5,968 | 2,389 | ||||||||||||||
| Total interest expense | 21,316 | 17,185 | 6,753 | 51,300 | 17,329 | ||||||||||||||
| Net Interest Income | 143,628 | 137,948 | 96,809 | 411,673 | 248,634 | ||||||||||||||
| Provision for loan losses | 5,499 | 6,229 | 4,103 | 15,778 | 8,603 | ||||||||||||||
| Net interest income after provision for loan losses | 138,129 | 131,719 | 92,706 | 395,895 | 240,031 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Service charges and fees on deposit accounts | 9,147 | 8,777 | 7,665 | 25,928 | 19,722 | ||||||||||||||
| Wealth management revenue | 6,188 | 6,958 | 5,584 | 18,973 | 16,567 | ||||||||||||||
| Other charges and fees for customer services | 6,624 | 9,734 | 7,410 | 25,249 | 20,265 | ||||||||||||||
| Net gain on sale of loans and other mortgage banking revenue | 5,241 | 9,879 | 4,439 | 24,280 | 7,439 | ||||||||||||||
| Gain on sale of investment securities | 1 | 77 | 16 | 168 | 53 | ||||||||||||||
| Other | 4,921 | 6,143 | 2,656 | 17,102 | 4,040 | ||||||||||||||
| Total noninterest income | 32,122 | 41,568 | 27,770 | 111,700 | 68,086 | ||||||||||||||
| Operating Expenses | |||||||||||||||||||
| Salaries, wages and employee benefits | 52,621 | 52,601 | 40,565 | 165,470 | 107,582 | ||||||||||||||
| Occupancy | 6,871 | 8,745 | 5,462 | 23,008 | 15,881 | ||||||||||||||
| Equipment and software | 7,582 | 8,149 | 6,420 | 24,248 | 15,699 | ||||||||||||||
| Outside processing and service fees | 9,626 | 8,924 | 5,365 | 26,061 | 13,909 | ||||||||||||||
| Merger expenses | 2,379 | 465 | 37,470 | 7,011 | 43,118 | ||||||||||||||
| Restructuring expenses | 18,824 | — | — | 18,824 | — | ||||||||||||||
| Other | 21,636 | 19,353 | 10,862 | 57,350 | 27,927 | ||||||||||||||
| Total operating expenses | 119,539 | 98,237 | 106,144 | 321,972 | 224,116 | ||||||||||||||
| Income before income taxes | 50,712 | 75,050 | 14,332 | 185,623 | 84,001 | ||||||||||||||
| Income tax expense | 10,253 | 23,036 | 2,848 | 45,546 | 23,137 | ||||||||||||||
| Net Income | $ | 40,459 | $ | 52,014 | $ | 11,484 | $ | 140,077 | $ | 60,864 | |||||||||
| Earnings Per Common Share: | |||||||||||||||||||
| Weighted average common shares outstanding-basic | 70,911 | 70,819 | 49,107 | 70,787 | 41,881 | ||||||||||||||
| Weighted average common shares outstanding-diluted | 71,505 | 71,443 | 49,631 | 71,454 | 42,321 | ||||||||||||||
| Basic earnings per share | $ | 0.57 | $ | 0.73 | $ | 0.23 | $ | 1.98 | $ | 1.45 | |||||||||
| Diluted earnings per share | 0.56 | 0.73 | 0.23 | 1.95 | 1.42 | ||||||||||||||
| Cash Dividends Declared Per Common Share | 0.28 | 0.27 | 0.27 | 0.82 | 0.79 | ||||||||||||||
| Key Ratios (annualized where applicable): | |||||||||||||||||||
| Return on average assets | 0.86 | % | 1.14 | % | 0.37 | % | 1.03 | % | 0.79 | % | |||||||||
| Return on average shareholders' equity | 6.1 | % | 8.0 | % | 2.9 | % | 7.2 | % | 6.7 | % | |||||||||
| Net interest margin (tax-equivalent basis) (non-GAAP) | 3.48 | % | 3.48 | % | 3.58 | % | 3.48 | % | 3.62 | % | |||||||||
| Efficiency ratio - GAAP | 68.0 | % | 54.7 | % | 85.2 | % | 61.5 | % | 70.8 | % | |||||||||
| Efficiency ratio - adjusted (non-GAAP) | 51.2 | % | 52.2 | % | 52.7 | % | 53.5 | % | 54.7 | % | |||||||||
7
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation
(Dollars in thousands, except per share data)
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | |||||||||||||||||||||
| Summary of Operations | |||||||||||||||||||||||||||
| Interest income | $ | 164,944 | $ | 155,133 | $ | 142,896 | $ | 144,416 | $ | 103,562 | $ | 82,937 | $ | 79,464 | |||||||||||||
| Interest expense | 21,316 | 17,185 | 12,799 | 11,969 | 6,753 | 5,442 | 5,134 | ||||||||||||||||||||
| Net interest income | 143,628 | 137,948 | 130,097 | 132,447 | 96,809 | 77,495 | 74,330 | ||||||||||||||||||||
| Provision for loan losses | 5,499 | 6,229 | 4,050 | 6,272 | 4,103 | 3,000 | 1,500 | ||||||||||||||||||||
| Net interest income after provision for loan losses | 138,129 | 131,719 | 126,047 | 126,175 | 92,706 | 74,495 | 72,830 | ||||||||||||||||||||
| Noninterest income | 32,122 | 41,568 | 38,010 | 54,264 | 27,770 | 20,897 | 19,419 | ||||||||||||||||||||
| Operating expenses, excluding merger and restructuring expenses and impairment of income tax credits (non-GAAP) | 95,241 | 97,772 | 100,029 | 94,443 | 68,674 | 56,031 | 56,293 | ||||||||||||||||||||
| Merger and restructuring expenses | 21,203 | 465 | 4,167 | 18,016 | 37,470 | 3,054 | 2,594 | ||||||||||||||||||||
| Impairment of income tax credits | 3,095 | — | — | — | — | — | — | ||||||||||||||||||||
| Income before income taxes | 50,712 | 75,050 | 59,861 | 67,980 | 14,332 | 36,307 | 33,362 | ||||||||||||||||||||
| Income tax expense | 10,253 | 23,036 | 12,257 | 18,969 | 2,848 | 10,532 | 9,757 | ||||||||||||||||||||
| Net income | $ | 40,459 | $ | 52,014 | $ | 47,604 | $ | 49,011 | $ | 11,484 | $ | 25,775 | $ | 23,605 | |||||||||||||
| Significant items, net of tax | 16,409 | 1,474 | 3,046 | 2,781 | 25,921 | 1,985 | 1,686 | ||||||||||||||||||||
| Net income, excluding significant items | $ | 56,868 | $ | 53,488 | $ | 50,650 | $ | 51,792 | $ | 37,405 | $ | 27,760 | $ | 25,291 | |||||||||||||
| Per Common Share Data | |||||||||||||||||||||||||||
| Net income: | |||||||||||||||||||||||||||
| Basic | $ | 0.57 | $ | 0.73 | $ | 0.67 | $ | 0.67 | $ | 0.23 | $ | 0.67 | $ | 0.61 | |||||||||||||
| Diluted | 0.56 | 0.73 | 0.67 | 0.66 | 0.23 | 0.67 | 0.60 | ||||||||||||||||||||
| Diluted, excluding significant items (non-GAAP) | 0.79 | 0.75 | 0.71 | 0.70 | 0.75 | 0.72 | 0.65 | ||||||||||||||||||||
| Cash dividends declared | 0.28 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.26 | ||||||||||||||||||||
| Book value - period-end | 37.57 | 37.11 | 36.56 | 36.57 | 36.37 | 27.45 | 26.99 | ||||||||||||||||||||
| Tangible book value - period-end | 21.36 | 20.89 | 20.32 | 20.20 | 19.99 | 19.68 | 19.20 | ||||||||||||||||||||
| Market value - period-end | 52.26 | 48.41 | 51.15 | 54.17 | 44.13 | 37.29 | 35.69 | ||||||||||||||||||||
| Key Ratios (annualized where applicable) | |||||||||||||||||||||||||||
| Net interest margin (taxable equivalent basis) (non-GAAP) | 3.48 | % | 3.48 | % | 3.49 | % | 3.56 | % | 3.58 | % | 3.70 | % | 3.60 | % | |||||||||||||
Efficiency ratio - adjusted (non-GAAP) | 51.2 | % | 52.2 | % | 57.4 | % | 53.7 | % | 52.7 | % | 54.6 | % | 57.6 | % | |||||||||||||
| Return on average assets | 0.86 | % | 1.14 | % | 1.09 | % | 1.09 | % | 0.37 | % | 1.10 | % | 1.02 | % | |||||||||||||
| Return on average shareholders' equity | 6.1 | % | 8.0 | % | 7.4 | % | 7.4 | % | 2.9 | % | 10.0 | % | 9.3 | % | |||||||||||||
| Average shareholders' equity as a percent of average assets | 14.0 | % | 14.3 | % | 14.8 | % | 14.9 | % | 12.7 | % | 11.1 | % | 11.0 | % | |||||||||||||
| Capital ratios (period end): | |||||||||||||||||||||||||||
| Tangible shareholders' equity as a percent of tangible assets | 8.3 | % | 8.4 | % | 8.8 | % | 8.8 | % | 8.7 | % | 8.2 | % | 8.2 | % | |||||||||||||
Total risk-based capital ratio (1) | 11.2 | % | 11.1 | % | 11.4 | % | 11.5 | % | 11.1 | % | 11.4 | % | 11.5 | % | |||||||||||||
(1) Estimated at September 30, 2017.
8
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Average Balances, Fully Tax Equivalent (FTE) Interest and Effective Yields and Rates(1) (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||
Average Balance | Interest (FTE) | Effective Yield/Rate (1) | Average Balance | Interest (FTE) | Effective Yield/Rate (1) | Average Balance | Interest (FTE) | Effective Yield/Rate (1) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans (1)(2) | $ | 13,795,750 | $ | 149,595 | 4.31 | % | $ | 13,513,927 | $ | 142,128 | 4.22 | % | $ | 9,470,650 | $ | 97,880 | 4.12 | % | ||||||||||||||
| Taxable investment securities | 1,629,344 | 9,326 | 2.29 | 1,364,358 | 7,125 | 2.09 | 687,259 | 2,575 | 1.50 | |||||||||||||||||||||||
Tax-exempt investment securities(1) | 896,854 | 7,013 | 3.13 | 882,445 | 6,781 | 3.07 | 592,747 | 4,721 | 3.19 | |||||||||||||||||||||||
| Other interest-earning assets | 180,188 | 1,039 | 2.29 | 166,244 | 1,246 | 3.01 | 57,756 | 358 | 2.47 | |||||||||||||||||||||||
| Interest-bearing deposits with the FRB and other banks and federal funds sold | 313,104 | 1,231 | 1.56 | 302,022 | 1,022 | 1.36 | 249,731 | 454 | 0.72 | |||||||||||||||||||||||
| Total interest-earning assets | 16,815,240 | 168,204 | 3.98 | 16,228,996 | 158,302 | 3.91 | 11,058,143 | 105,988 | 3.82 | |||||||||||||||||||||||
| Less: allowance for loan losses | (84,640 | ) | (80,690 | ) | (72,242 | ) | ||||||||||||||||||||||||||
| Other assets: | ||||||||||||||||||||||||||||||||
| Cash and cash due from banks | 250,743 | 222,954 | 194,171 | |||||||||||||||||||||||||||||
| Premises and equipment | 146,266 | 145,320 | 116,944 | |||||||||||||||||||||||||||||
| Interest receivable and other assets | 1,730,539 | 1,748,119 | 953,714 | |||||||||||||||||||||||||||||
| Total assets | $ | 18,858,148 | $ | 18,264,699 | $ | 12,250,730 | ||||||||||||||||||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 2,725,807 | $ | 1,321 | 0.19 | % | $ | 2,682,652 | $ | 1,289 | 0.19 | % | $ | 2,327,762 | $ | 961 | 0.16 | % | ||||||||||||||
| Savings deposits | 4,012,299 | 3,985 | 0.39 | 3,881,260 | 3,047 | 0.31 | 2,512,620 | 749 | 0.12 | |||||||||||||||||||||||
| Time deposits | 3,007,109 | 7,620 | 1.01 | 2,958,436 | 6,246 | 0.85 | 2,186,781 | 4,126 | 0.75 | |||||||||||||||||||||||
| Short-term borrowings | 2,279,998 | 6,591 | 1.15 | 2,027,505 | 4,659 | 0.92 | 593,903 | 459 | 0.31 | |||||||||||||||||||||||
| Long-term borrowings | 426,155 | 1,799 | 1.67 | 474,086 | 1,944 | 1.65 | 494,810 | 458 | 0.37 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 12,451,368 | 21,316 | 0.68 | 12,023,939 | 17,185 | 0.57 | 8,115,876 | 6,753 | 0.33 | |||||||||||||||||||||||
| Noninterest-bearing deposits | 3,643,765 | — | — | 3,499,686 | — | — | 2,456,469 | — | — | |||||||||||||||||||||||
| Total deposits and borrowed funds | 16,095,133 | 21,316 | 0.53 | 15,523,625 | 17,185 | 0.44 | 10,572,345 | 6,753 | 0.25 | |||||||||||||||||||||||
| Interest payable and other liabilities | 119,782 | 134,557 | 118,717 | |||||||||||||||||||||||||||||
| Shareholders' equity | 2,643,233 | 2,606,517 | 1,559,668 | |||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 18,858,148 | $ | 18,264,699 | $ | 12,250,730 | ||||||||||||||||||||||||||
| Net Interest Spread (Average yield earned on interest-earning assets minus average rate paid on interest-bearing liabilities) | 3.30 | % | 3.34 | % | 3.49 | % | ||||||||||||||||||||||||||
| Net Interest Income (FTE) | $ | 146,888 | $ | 141,117 | $ | 99,235 | ||||||||||||||||||||||||||
| Net Interest Margin (Net Interest Income (FTE) divided by total average interest-earning assets) | 3.48 | % | 3.48 | % | 3.58 | % | ||||||||||||||||||||||||||
| Reconciliation to Reported Net Interest Income | ||||||||||||||||||||||||||||||||
| Net interest income, fully taxable equivalent (non-GAAP) | $ | 146,888 | $ | 141,117 | $ | 99,235 | ||||||||||||||||||||||||||
Adjustments for taxable equivalent interest (1): | ||||||||||||||||||||||||||||||||
| Loans | (824 | ) | (814 | ) | (777 | ) | ||||||||||||||||||||||||||
| Tax-exempt investment securities | (2,436 | ) | (2,355 | ) | (1,649 | ) | ||||||||||||||||||||||||||
| Total taxable equivalent interest adjustments | (3,260 | ) | (3,169 | ) | (2,426 | ) | ||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 143,628 | $ | 137,948 | $ | 96,809 | ||||||||||||||||||||||||||
| Net interest margin (GAAP) | 3.40% | 3.41 | % | 3.49 | % | |||||||||||||||||||||||||||
(1) Fully taxable equivalent (FTE) basis using a federal income tax rate of 35%. The presentation of net interest income on a FTE basis is not in accordance with GAAP, but is customary in the banking industry.
(2) Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. Also, tax equivalent interest includes net loan fees.
9
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Average Balances, Fully Tax Equivalent (FTE) Interest and Effective Yields and Rates (1) (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| Nine Months Ended | ||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||||||||
Average Balance | Interest (FTE) | Effective Yield/Rate (1) | Average Balance | Interest (FTE) | Effective Yield/Rate (1) | |||||||||||||||||
| Assets | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
Loans (1)(2) | $ | 13,490,851 | $ | 425,016 | 4.21 | % | $ | 8,098,796 | $ | 251,274 | 4.14 | % | ||||||||||
| Taxable investment securities | 1,335,349 | 21,207 | 2.12 | 586,066 | 6,302 | 1.43 | ||||||||||||||||
Tax-exempt investment securities (1) | 880,398 | 20,290 | 3.07 | 524,690 | 12,882 | 3.27 | ||||||||||||||||
| Other interest-earning assets | 150,203 | 2,906 | 2.59 | 46,994 | 1,391 | 3.95 | ||||||||||||||||
| Interest-bearing deposits with the FRB and other banks and federal funds sold | 294,967 | 3,052 | 1.38 | 156,640 | 811 | 0.69 | ||||||||||||||||
| Total interest-earning assets | 16,151,768 | 472,471 | 3.91 | 9,413,186 | 272,660 | 3.87 | ||||||||||||||||
| Less: allowance for loan losses | (81,337 | ) | (72,525 | ) | ||||||||||||||||||
| Other assets: | ||||||||||||||||||||||
| Cash and cash due from banks | 234,379 | 166,927 | ||||||||||||||||||||
| Premises and equipment | 145,877 | 109,159 | ||||||||||||||||||||
| Interest receivable and other assets | 1,753,337 | 665,185 | ||||||||||||||||||||
| Total assets | $ | 18,204,024 | $ | 10,281,932 | ||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 2,768,209 | $ | 3,628 | 0.18 | % | $ | 2,058,951 | $ | 2,011 | 0.13 | % | ||||||||||
| Savings deposits | 3,912,672 | 8,753 | 0.30 | 2,212,732 | 1,614 | 0.10 | ||||||||||||||||
| Time deposits | 2,973,070 | 20,043 | 0.90 | 1,799,691 | 10,530 | 0.78 | ||||||||||||||||
| Short-term borrowings | 1,848,325 | 12,908 | 0.93 | 454,456 | 785 | 0.23 | ||||||||||||||||
| Long-term borrowings | 479,344 | 5,968 | 1.66 | 347,925 | 2,389 | 0.92 | ||||||||||||||||
| Total interest-bearing liabilities | 11,981,620 | 51,300 | 0.57 | 6,873,755 | 17,329 | 0.34 | ||||||||||||||||
| Noninterest-bearing deposits | 3,484,125 | — | — | 2,115,511 | — | — | ||||||||||||||||
| Total deposits and borrowed funds | 15,465,745 | 51,300 | 0.44 | 8,989,266 | 17,329 | 0.26 | ||||||||||||||||
| Interest payable and other liabilities | 126,649 | 87,829 | ||||||||||||||||||||
| Shareholders' equity | 2,611,630 | 1,204,837 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 18,204,024 | $ | 10,281,932 | ||||||||||||||||||
| Net Interest Spread (Average yield earned on interest-earning assets minus average rate paid on interest-bearing liabilities) | 3.34 | % | 3.53 | % | ||||||||||||||||||
| Net Interest Income (FTE) | $ | 421,171 | $ | 255,331 | ||||||||||||||||||
| Net Interest Margin (Net Interest Income (FTE) divided by total average interest-earning assets) | 3.48 | % | 3.62 | % | ||||||||||||||||||
| Reconciliation to Reported Net Interest Income | ||||||||||||||||||||||
| Net interest income, fully taxable equivalent (non-GAAP) | $ | 421,171 | $ | 255,331 | ||||||||||||||||||
Adjustments for taxable equivalent interest (1): | ||||||||||||||||||||||
| Loans | (2,446 | ) | (2,192 | ) | ||||||||||||||||||
| Tax-exempt investment securities | (7,052 | ) | (4,505 | ) | ||||||||||||||||||
| Total taxable equivalent interest adjustments | (9,498 | ) | (6,697 | ) | ||||||||||||||||||
| Net interest income (GAAP) | $ | 411,673 | $ | 248,634 | ||||||||||||||||||
| Net interest margin (GAAP) | 3.40 | % | 3.53 | % | ||||||||||||||||||
(1) Fully taxable equivalent (FTE) basis using a federal income tax rate of 35%. The presentation of net interest income on a FTE basis is not in accordance with GAAP, but is customary in the banking industry.
(2) Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. Also, tax equivalent interest includes net loan fees.
10
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Chemical Financial Corporation
(Dollars in thousands)
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | |||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||
| Service charges and fees on deposit accounts | $ | 9,147 | $ | 8,777 | $ | 8,004 | $ | 8,414 | $ | 7,665 | $ | 6,337 | $ | 5,720 | |||||||||||||
| Wealth management revenue | 6,188 | 6,958 | 5,827 | 6,034 | 5,584 | 5,782 | 5,201 | ||||||||||||||||||||
| Electronic banking fees | 4,370 | 7,482 | 6,817 | 8,196 | 5,533 | 4,786 | 4,918 | ||||||||||||||||||||
| Net gain on sale of loans and other mortgage banking revenue | 5,241 | 9,879 | 9,160 | 14,420 | 4,439 | 1,595 | 1,405 | ||||||||||||||||||||
| Other fees for customer services | 2,254 | 2,252 | 2,074 | 1,785 | 1,877 | 1,677 | 1,474 | ||||||||||||||||||||
| Gain on sale of investment securities | 1 | 77 | 90 | 76 | 16 | 18 | 19 | ||||||||||||||||||||
| Gain on sale of branch offices | — | — | — | 7,391 | — | — | — | ||||||||||||||||||||
| Other | 4,921 | 6,143 | 6,038 | 7,948 | 2,656 | 702 | 682 | ||||||||||||||||||||
| Total noninterest income | $ | 32,122 | $ | 41,568 | $ | 38,010 | $ | 54,264 | $ | 27,770 | $ | 20,897 | $ | 19,419 | |||||||||||||
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | |||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||
| Salaries and wages | $ | 44,641 | $ | 44,959 | $ | 48,526 | $ | 47,936 | $ | 33,841 | $ | 26,887 | $ | 26,743 | |||||||||||||
| Employee benefits | 7,980 | 7,642 | 11,722 | 9,695 | 6,724 | 6,240 | 7,147 | ||||||||||||||||||||
| Occupancy | 6,871 | 8,745 | 7,392 | 7,644 | 5,462 | 5,514 | 4,905 | ||||||||||||||||||||
| Equipment and software | 7,582 | 8,149 | 8,517 | 8,709 | 6,420 | 4,875 | 4,404 | ||||||||||||||||||||
| Outside processing and service fees | 9,626 | 8,924 | 7,511 | 7,290 | 5,365 | 4,833 | 3,711 | ||||||||||||||||||||
| FDIC insurance premiums | 2,768 | 2,460 | 1,406 | 2,813 | 1,849 | 1,338 | 1,407 | ||||||||||||||||||||
| Professional fees | 3,489 | 2,567 | 1,968 | 2,304 | 1,472 | 1,020 | 1,036 | ||||||||||||||||||||
| Intangible asset amortization | 1,526 | 1,525 | 1,513 | 1,843 | 1,292 | 1,195 | 1,194 | ||||||||||||||||||||
| Credit-related expenses | 1,874 | 1,895 | 1,200 | (1,029 | ) | (371 | ) | (1,331 | ) | 30 | |||||||||||||||||
| Merger expenses | 2,379 | 465 | 4,167 | 18,016 | 37,470 | 3,054 | 2,594 | ||||||||||||||||||||
| Restructuring expenses | 18,824 | — | — | — | — | — | — | ||||||||||||||||||||
| Impairment of income tax credit | 3,095 | — | — | — | — | — | — | ||||||||||||||||||||
| Other | 8,884 | 10,906 | 10,274 | 9,081 | 6,620 | 5,460 | 5,716 | ||||||||||||||||||||
| Total operating expenses | $ | 119,539 | $ | 98,237 | $ | 104,196 | $ | 114,302 | $ | 106,144 | $ | 59,085 | $ | 58,887 | |||||||||||||
11
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Composition of Loans and Deposits and Additional Information on Intangible Assets (Unaudited)
Chemical Financial Corporation
(Dollars in Thousands)
| Organic Growth - | Organic Growth - | ||||||||||||||||||||||||
| Sep 30, 2017 | June 30, 2017 | Three Months Ended September 30, 2017 | March 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Twelve Months Ended September 30, 2017 | |||||||||||||||||||
| Composition of Loans | |||||||||||||||||||||||||
| Commercial loan portfolio: | |||||||||||||||||||||||||
| Commercial | $ | 3,319,965 | $ | 3,360,161 | (1.2 | )% | $ | 3,253,608 | $ | 3,217,300 | $ | 3,199,576 | 3.8 | % | |||||||||||
| Commercial real estate | 4,315,978 | 4,324,323 | (0.2 | ) | 4,097,771 | 3,973,140 | 3,733,377 | 15.6 | |||||||||||||||||
| Real estate construction | 501,413 | 446,678 | 12.3 | 453,811 | 403,772 | 500,494 | 0.2 | ||||||||||||||||||
| Subtotal - commercial loans | 8,137,356 | 8,131,162 | 0.1 | 7,805,190 | 7,594,212 | 7,433,447 | 9.5 | ||||||||||||||||||
| Consumer loan portfolio: | |||||||||||||||||||||||||
| Residential mortgage | 3,221,307 | 3,125,397 | 3.1 | 3,133,465 | 3,086,474 | 3,046,959 | 5.7 | ||||||||||||||||||
| Consumer installment | 1,615,983 | 1,553,967 | 4.0 | 1,481,057 | 1,433,884 | 1,335,707 | 21.0 | ||||||||||||||||||
| Home equity | 858,722 | 856,846 | 0.2 | 853,680 | 876,209 | 899,676 | (4.6 | ) | |||||||||||||||||
| Subtotal - consumer loans | 5,696,012 | 5,536,210 | 2.9 | 5,468,202 | 5,396,567 | 5,282,342 | 7.8 | ||||||||||||||||||
| Total loans | $ | 13,833,368 | $ | 13,667,372 | 1.2 | % | $ | 13,273,392 | $ | 12,990,779 | $ | 12,715,789 | 8.8 | % | |||||||||||
| Organic Growth - | Organic Growth - | ||||||||||||||||||||||||
| Sep 30, 2017 | June 30, 2017 | Three Months Ended September 30, 2017 | March 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Twelve Months Ended September 30, 2017 | |||||||||||||||||||
| Composition of Deposits | |||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 3,688,848 | $ | 3,626,592 | 1.7 | % | $ | 3,399,287 | $ | 3,341,520 | $ | 3,264,934 | 13.0 | % | |||||||||||
| Savings | 1,736,360 | 1,749,199 | (0.7 | ) | 1,752,040 | 1,662,115 | 1,650,276 | 5.2 | |||||||||||||||||
| Interest-bearing demand | 2,976,212 | 2,606,032 | 14.2 | 2,900,546 | 2,825,801 | 3,316,635 | (10.3 | ) | |||||||||||||||||
| Money market accounts | 2,289,852 | 2,235,412 | 2.4 | 2,161,645 | 2,033,319 | 1,692,656 | 35.3 | ||||||||||||||||||
| Brokered deposits | 132,806 | 123,728 | 7.3 | 156,367 | 226,429 | 474,902 | (72.0 | ) | |||||||||||||||||
| Other time deposits | 2,981,167 | 2,863,404 | 4.1 | 2,762,462 | 2,783,938 | 2,873,459 | 3.7 | ||||||||||||||||||
| Total deposits | $ | 13,805,245 | $ | 13,204,367 | 4.6 | % | $ | 13,132,347 | $ | 12,873,122 | $ | 13,272,862 | 4.0 | % | |||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||
| Additional Data - Intangibles | |||||||||||||||||||
| Goodwill | $ | 1,134,568 | $ | 1,133,534 | $ | 1,133,534 | $ | 1,133,534 | $ | 1,137,166 | |||||||||
| Loan servicing rights | 62,195 | 64,522 | 64,604 | 58,315 | 51,393 | ||||||||||||||
| Core deposit intangibles (CDI) | 35,747 | 37,235 | 38,723 | 40,211 | 35,618 | ||||||||||||||
| Noncompete agreements | 50 | 87 | 125 | — | 82 | ||||||||||||||
12
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Nonperforming Assets (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| Sep 30, 2017 | June 30, 2017 | March 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||||
| Nonperforming Assets | |||||||||||||||||||||||||||
Nonperforming Loans (1): | |||||||||||||||||||||||||||
| Nonaccrual loans: | |||||||||||||||||||||||||||
| Commercial | $ | 15,648 | $ | 18,773 | $ | 16,717 | $ | 13,178 | $ | 13,742 | $ | 14,577 | $ | 19,264 | |||||||||||||
| Commercial real estate | 25,150 | 19,723 | 20,828 | 19,877 | 19,914 | 21,325 | 25,859 | ||||||||||||||||||||
| Real estate construction | 78 | 56 | 79 | 80 | 80 | 496 | 546 | ||||||||||||||||||||
| Residential mortgage | 8,646 | 7,714 | 6,749 | 6,969 | 5,119 | 5,343 | 5,062 | ||||||||||||||||||||
| Consumer installment | 875 | 757 | 755 | 879 | 378 | 285 | 360 | ||||||||||||||||||||
| Home equity | 3,908 | 3,871 | 2,713 | 3,351 | 2,064 | 1,971 | 2,328 | ||||||||||||||||||||
Total nonaccrual loans(1) | 54,305 | 50,894 | 47,841 | 44,334 | 41,297 | 43,997 | 53,419 | ||||||||||||||||||||
| Other real estate and repossessed assets | 10,605 | 14,582 | 16,395 | 17,187 | 20,730 | 8,440 | 9,248 | ||||||||||||||||||||
| Total nonperforming assets | $ | 64,910 | $ | 65,476 | $ | 64,236 | $ | 61,521 | $ | 62,027 | $ | 52,437 | $ | 62,667 | |||||||||||||
| Accruing loans contractually past due 90 days or more as to interest or principal payments, excluding acquired loans accounted for under ASC 310-30: | |||||||||||||||||||||||||||
| Commercial | $ | 3,521 | $ | 58 | $ | 1,823 | $ | 11 | $ | 221 | $ | 3 | $ | 370 | |||||||||||||
| Commercial real estate | 144 | 262 | 700 | 277 | 739 | 3 | — | ||||||||||||||||||||
| Real estate construction | — | — | — | — | 1,439 | — | — | ||||||||||||||||||||
| Residential mortgage | — | — | — | — | 375 | 407 | 423 | ||||||||||||||||||||
| Home equity | 2,367 | 2,026 | 1,169 | 995 | 628 | 1,071 | 679 | ||||||||||||||||||||
| Total accruing loans contractually past due 90 days or more as to interest or principal payments | $ | 6,032 | 2,346 | $ | 3,692 | $ | 1,283 | $ | 3,402 | $ | 1,484 | $ | 1,472 | ||||||||||||||
(1) Acquired loans, accounted for under Accounting Standards Codification 310-30, that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans.
13
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Summary of Allowance and Loan Loss Experience (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | Nine Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2017 | Sep 30, 2016 | ||||||||||||||||||||||||||||||||||
| Allowance for loan losses - originated loan portfolio | |||||||||||||||||||||||||||||||||||
| Allowance for loan losses - beginning of period | $ | 83,797 | $ | 78,774 | $ | 78,268 | $ | 73,775 | $ | 71,506 | $ | 70,318 | $ | 73,328 | $ | 78,268 | $ | 73,328 | |||||||||||||||||
| Provision for loan losses | 4,921 | 6,229 | 4,050 | 6,272 | 4,103 | 3,000 | 1,500 | 15,200 | 8,603 | ||||||||||||||||||||||||||
| Net loan (charge-offs) recoveries: | |||||||||||||||||||||||||||||||||||
| Commercial | (2,348 | ) | (239 | ) | (1,999 | ) | (336 | ) | (150 | ) | (1,153 | ) | (3,115 | ) | (4,586 | ) | (4,418 | ) | |||||||||||||||||
| Commercial real estate | (174 | ) | (205 | ) | 730 | (280 | ) | (154 | ) | (187 | ) | (440 | ) | 351 | (781 | ) | |||||||||||||||||||
| Real estate construction | — | — | (9 | ) | 36 | (31 | ) | — | (11 | ) | (9 | ) | (42 | ) | |||||||||||||||||||||
| Residential mortgage | (44 | ) | 19 | (567 | ) | (236 | ) | (304 | ) | 8 | (172 | ) | (592 | ) | (468 | ) | |||||||||||||||||||
| Consumer installment | (858 | ) | (747 | ) | (1,310 | ) | (823 | ) | (1,137 | ) | (486 | ) | (602 | ) | (2,915 | ) | (2,225 | ) | |||||||||||||||||
| Home equity | (113 | ) | (34 | ) | (389 | ) | (140 | ) | (58 | ) | 6 | (170 | ) | (536 | ) | (222 | ) | ||||||||||||||||||
| Net loan charge-offs | (3,537 | ) | (1,206 | ) | (3,544 | ) | (1,779 | ) | (1,834 | ) | (1,812 | ) | (4,510 | ) | (8,287 | ) | (8,156 | ) | |||||||||||||||||
| Allowance for loan losses - end of period | 85,181 | 83,797 | 78,774 | 78,268 | 73,775 | 71,506 | 70,318 | 85,181 | 73,775 | ||||||||||||||||||||||||||
| Allowance for loan losses - acquired loan portfolio | |||||||||||||||||||||||||||||||||||
| Allowance for loan losses - beginning of period | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Provision for loan losses | 579 | — | — | — | — | — | — | 579 | — | ||||||||||||||||||||||||||
| Allowance for loan losses - end of period | 579 | — | — | — | — | — | — | 579 | — | ||||||||||||||||||||||||||
| Total allowance for loan losses | $ | 85,760 | $ | 83,797 | $ | 78,774 | $ | 78,268 | $ | 73,775 | $ | 71,506 | $ | 70,318 | $ | 85,760 | $ | 73,775 | |||||||||||||||||
| Net loan charge-offs as a percent of average loans (annualized) | 0.10 | % | 0.04 | % | 0.11 | % | 0.06 | % | 0.08 | % | 0.10 | % | 0.25 | % | 0.08 | % | 0.13 | % | |||||||||||||||||
| Sep 30, 2017 | June 30, 2017 | March 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | |||||||||||||||
| Originated loans | $ | 9,156,096 | $ | 8,659,622 | $ | 7,959,769 | $ | 7,458,401 | $ | 6,755,931 | |||||||||
| Acquired loans | 4,677,272 | 5,007,750 | 5,313,623 | 5,532,378 | 5,959,858 | ||||||||||||||
| Total loans | $ | 13,833,368 | $ | 13,667,372 | $ | 13,273,392 | $ | 12,990,779 | $ | 12,715,789 | |||||||||
| Allowance for loan losses (originated loan portfolio) as a percent of: | |||||||||||||||||||
| Total originated loans | 0.93 | % | 0.97 | % | 0.99 | % | 1.05 | % | 1.09 | % | |||||||||
| Nonperforming loans | 156.9 | % | 164.7 | % | 177.7 | % | 176.5 | % | 178.6 | % | |||||||||
| Credit mark as a percent of unpaid principal balance on acquired loans | 2.7 | % | 2.6 | % | 2.8 | % | 3.1 | % | 3.0 | % | |||||||||
14
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Reconciliation of Non-GAAP Financial Measures (Unaudited)
Chemical Financial Corporation
(Amounts in thousands)
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | Nine Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2017 | Sep 30, 2016 | ||||||||||||||||||||||||||||||||||
| Non-GAAP Operating Results | |||||||||||||||||||||||||||||||||||
| Net Income | |||||||||||||||||||||||||||||||||||
| Net income, as reported | $ | 40,459 | $ | 52,014 | $ | 47,604 | $ | 47,168 | $ | 11,484 | $ | 25,775 | $ | 23,605 | $ | 140,077 | $ | 60,864 | |||||||||||||||||
| Merger and restructuring expenses | 21,203 | 465 | 4,167 | 18,016 | 37,470 | 3,054 | 2,594 | 25,835 | 43,118 | ||||||||||||||||||||||||||
| Gain on sales of branch offices | — | — | — | (7,391 | ) | — | — | — | — | — | |||||||||||||||||||||||||
| Loan servicing rights change in fair valuation | 4,041 | 1,802 | 519 | (6,348 | ) | 1,236 | — | — | 6,362 | 1,236 | |||||||||||||||||||||||||
| Significant items | 25,244 | 2,267 | 4,686 | 4,277 | 38,706 | 3,054 | 2,594 | 32,197 | 44,354 | ||||||||||||||||||||||||||
Income tax benefit (1) | (8,835 | ) | (793 | ) | (1,640 | ) | (1,496 | ) | (12,785 | ) | (1,069 | ) | (908 | ) | (11,268 | ) | (14,762 | ) | |||||||||||||||||
| Significant items, net of tax | 16,409 | 1,474 | 3,046 | 2,781 | 25,921 | 1,985 | 1,686 | 20,929 | 29,592 | ||||||||||||||||||||||||||
| Net income, excluding significant items | $ | 56,868 | $ | 53,488 | $ | 50,650 | $ | 49,949 | $ | 37,405 | $ | 27,760 | $ | 25,291 | $ | 161,006 | $ | 90,456 | |||||||||||||||||
| Diluted Earnings Per Share | |||||||||||||||||||||||||||||||||||
| Diluted earnings per share, as reported | $ | 0.56 | $ | 0.73 | $ | 0.67 | $ | 0.66 | $ | 0.23 | $ | 0.67 | $ | 0.60 | $ | 1.95 | $ | 1.42 | |||||||||||||||||
| Effect of significant items, net of tax | 0.23 | 0.02 | 0.04 | 0.04 | 0.52 | 0.05 | 0.05 | 0.29 | 0.69 | ||||||||||||||||||||||||||
| Diluted earnings per share, excluding significant items | $ | 0.79 | $ | 0.75 | $ | 0.71 | $ | 0.70 | $ | 0.75 | $ | 0.72 | $ | 0.65 | $ | 2.24 | $ | 2.11 | |||||||||||||||||
| Return on Average Assets | |||||||||||||||||||||||||||||||||||
| Return on average assets, as reported | 0.86 | % | 1.14% | 1.09 | % | 1.09 | % | 0.37 | % | 1.10 | % | 1.02 | % | 1.03 | % | 0.79 | % | ||||||||||||||||||
| Effect of significant items, net of tax | 0.35 | 0.03 | 0.07 | 0.07 | 0.85 | 0.09 | 0.07 | 0.15 | 0.38 | ||||||||||||||||||||||||||
| Return on average assets, excluding significant items | 1.21 | % | 1.17% | 1.16 | % | 1.16 | % | 1.22 | % | 1.19 | % | 1.09 | % | 1.18 | % | 1.17 | % | ||||||||||||||||||
| Return on Average Shareholders' Equity | |||||||||||||||||||||||||||||||||||
| Return on average shareholders' equity, as reported | 6.1 | % | 8.0 | % | 7.4 | % | 7.4 | % | 2.9 | % | 10.0 | % | 9.3 | % | 7.2 | % | 6.7 | % | |||||||||||||||||
| Effect of significant items, net of tax | 2.5 | 0.2 | 0.4 | 0.4 | 6.7 | 0.7 | 0.6 | 1.0 | 3.3 | ||||||||||||||||||||||||||
| Return on average shareholders' equity, excluding significant items | 8.6 | % | 8.2 | % | 7.8 | % | 7.8 | % | 9.6 | % | 10.7 | % | 9.9 | % | 8.2 | % | 10.0 | % | |||||||||||||||||
| Return on Average Tangible Shareholders' Equity | |||||||||||||||||||||||||||||||||||
| Average shareholders' equity | $2,643,233 | $2,606,517 | $2,584,501 | $2,564,943 | $1,559,668 | $1,033,014 | $1,017,929 | $2,611,630 | $1,204,837 | ||||||||||||||||||||||||||
| Average goodwill, CDI and noncompete agreements, net of tax | 1,153,394 | 1,154,229 | 1,155,177 | 1,153,598 | 585,393 | 295,882 | 299,685 | 1,154,243 | 393,023 | ||||||||||||||||||||||||||
| Average tangible shareholders' equity | $1,489,839 | $1,452,288 | $1,429,324 | $1,411,345 | $974,275 | $737,132 | $718,244 | $1,457,387 | $811,814 | ||||||||||||||||||||||||||
| Return on average tangible shareholders' equity | 10.9 | % | 14.3% | 13.3 | % | 13.4 | % | 4.7 | % | 14.0 | % | 13.1 | % | 12.8 | % | 10.0 | % | ||||||||||||||||||
| Effect of significant items, net of tax | 4.4 | 0.4 | 0.9 | 0.8 | 10.7 | 1.1 | 1.0 | 1.9 | 4.9 | ||||||||||||||||||||||||||
| Return on average tangible shareholders' equity, excluding significant items | 15.3 | % | 14.7 | % | 14.2 | % | 14.2 | % | 15.4 | % | 15.1 | % | 14.1 | % | 14.7 | % | 14.9 | % | |||||||||||||||||
(1) Assumes merger and restructuring expenses and other significant items are deductible at an income tax rate of 35%, except for the impact of estimated nondeductible expenses incurred in periods when the Corporation completed the merger transaction.
15
Chemical Financial Corporation Announces 2017 Third Quarter Operating Results
Reconciliation of Non-GAAP Financial Measures (Unaudited)
Chemical Financial Corporation
(Amounts in thousands, except per share data)
| 3rd Quarter 2017 | 2nd Quarter 2017 | 1st Quarter 2017 | 4th Quarter 2016 | 3rd Quarter 2016 | 2nd Quarter 2016 | 1st Quarter 2016 | Nine Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2017 | Sep 30, 2016 | ||||||||||||||||||||||||||||||||||
| Efficiency Ratio | |||||||||||||||||||||||||||||||||||
| Net interest income | $ | 143,628 | $ | 137,948 | $ | 130,097 | $ | 132,447 | $ | 96,809 | $ | 77,495 | $ | 74,330 | $ | 411,673 | $ | 248,634 | |||||||||||||||||
| Noninterest income | 32,122 | 41,568 | 38,010 | 54,264 | 27,770 | 20,897 | 19,419 | 111,700 | 68,086 | ||||||||||||||||||||||||||
| Total revenue - GAAP | 175,750 | 179,516 | 168,107 | 186,711 | 124,579 | 98,392 | 93,749 | 523,373 | 316,720 | ||||||||||||||||||||||||||
| Net interest income FTE adjustment | 3,260 | 3,169 | 3,068 | 2,945 | 2,426 | 2,138 | 2,133 | 9,498 | 6,697 | ||||||||||||||||||||||||||
| Loan servicing rights change in fair value (gains)losses | 4,041 | 1,802 | 519 | (6,348 | ) | 1,236 | — | — | 6,362 | 1,236 | |||||||||||||||||||||||||
| Gain on sales of branch offices | — | — | — | (7,391 | ) | — | — | — | — | — | |||||||||||||||||||||||||
| Gains from sale of investment securities and closed branch locations | (1 | ) | (77 | ) | (90 | ) | (76 | ) | (301 | ) | (123 | ) | (169 | ) | (168 | ) | (593 | ) | |||||||||||||||||
| Total revenue - Non-GAAP | $ | 183,050 | $ | 184,410 | $ | 171,604 | $ | 175,841 | $ | 127,940 | $ | 100,407 | $ | 95,713 | $ | 539,065 | $ | 324,060 | |||||||||||||||||
| Operating expenses - GAAP | $ | 119,539 | $ | 98,237 | $ | 104,196 | $ | 114,302 | $ | 106,144 | $ | 59,085 | $ | 58,887 | $ | 321,972 | $ | 224,116 | |||||||||||||||||
| Merger and restructuring expenses | (21,203 | ) | (465 | ) | (4,167 | ) | (18,016 | ) | (37,470 | ) | (3,054 | ) | (2,594 | ) | (25,835 | ) | (43,118 | ) | |||||||||||||||||
| Impairment of income tax credits | (3,095 | ) | — | — | — | — | — | — | (3,095 | ) | — | ||||||||||||||||||||||||
| Operating expense, core - Non-GAAP | 95,241 | 97,772 | 100,029 | 96,286 | 68,674 | 56,031 | 56,293 | 293,042 | 180,998 | ||||||||||||||||||||||||||
| Amortization of intangibles | (1,526 | ) | (1,525 | ) | (1,513 | ) | (1,843 | ) | (1,292 | ) | (1,195 | ) | (1,194 | ) | (4,564 | ) | (3,681 | ) | |||||||||||||||||
| Operating expenses, efficiency ratio - Non-GAAP | $ | 93,715 | $ | 96,247 | $ | 98,516 | $ | 94,443 | $ | 67,382 | $ | 54,836 | $ | 55,099 | $ | 288,478 | $ | 177,317 | |||||||||||||||||
| Efficiency ratio - GAAP | 68.0 | % | 54.7 | % | 62.0 | % | 61.2 | % | 85.2 | % | 60.1 | % | 62.8 | % | 61.5 | % | 70.8 | % | |||||||||||||||||
| Efficiency ratio - adjusted Non-GAAP | 51.2 | % | 52.2 | % | 57.4 | % | 53.7 | % | 52.7 | % | 54.6 | % | 57.6 | % | 53.5 | % | 54.7 | % | |||||||||||||||||
| Sep 30, 2017 | June 30, 2017 | March 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||||
| Tangible Book Value | |||||||||||||||||||||||||||
| Shareholders' equity, as reported | $ | 2,673,089 | $ | 2,639,442 | $ | 2,600,051 | $ | 2,581,526 | $ | 2,563,666 | $ | 1,050,299 | $ | 1,032,291 | |||||||||||||
| Goodwill, CDI and noncompete agreements, net of tax | (1,153,576 | ) | (1,153,595 | ) | (1,154,915 | ) | (1,155,617 | ) | (1,154,121 | ) | (297,044 | ) | (297,821 | ) | |||||||||||||
| Tangible shareholders' equity | $ | 1,519,513 | $ | 1,485,847 | $ | 1,445,136 | $ | 1,425,909 | $ | 1,409,545 | $ | 753,255 | $ | 734,470 | |||||||||||||
| Common shares outstanding | 71,152 | 71,131 | 71,118 | 70,599 | 70,497 | 38,267 | 38,248 | ||||||||||||||||||||
| Book value per share (shareholders' equity, as reported, divided by common shares outstanding) | $ | 37.57 | $ | 37.11 | $ | 36.56 | $ | 36.57 | $ | 36.37 | $ | 27.45 | $ | 26.99 | |||||||||||||
| Tangible book value per share (tangible shareholders' equity divided by common shares outstanding) | $ | 21.36 | $ | 20.89 | $ | 20.32 | $ | 20.20 | $ | 19.99 | $ | 19.68 | $ | 19.20 | |||||||||||||
| Tangible Shareholders' Equity to Tangible Assets | |||||||||||||||||||||||||||
| Total assets, as reported | $ | 19,354,308 | $ | 18,781,405 | $ | 17,636,973 | $ | 17,355,179 | $ | 17,383,637 | $ | 9,514,172 | $ | 9,303,632 | |||||||||||||
| Goodwill, CDI and noncompete agreements, net of tax | (1,153,576 | ) | (1,153,595 | ) | (1,154,915 | ) | (1,155,617 | ) | (1,154,121 | ) | (297,044 | ) | (297,821 | ) | |||||||||||||
| Tangible assets | $ | 18,200,732 | $ | 17,627,810 | $ | 16,482,058 | $ | 16,199,562 | $ | 16,229,516 | $ | 9,217,128 | $ | 9,005,811 | |||||||||||||
| Shareholders' equity to total assets | 13.8 | % | 14.1 | % | 14.7 | % | 14.9 | % | 14.7 | % | 11.0 | % | 11.1 | % | |||||||||||||
| Tangible shareholders' equity to tangible assets | 8.3 | % | 8.4 | % | 8.8 | % | 8.8 | % | 8.7 | % | 8.2 | % | 8.2 | % | |||||||||||||
16