Exhibit 99.1
Chittenden Corporation 2 Burlington Square P.O. Box 820 Burlington, Vermont 05402-0820 802-658-4000 | Kirk W. Walters (802) 660-1561 | |||
For Immediate Release
October 20, 2005 | 105/05 |
Chittenden Corporation Reports 10% Higher Earnings, Announces Share Repurchase
Plan and Quarterly Dividend
Burlington, VT – Chittenden Corporation (NYSE:CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault, today announced earnings for the quarter ended September 30, 2005, of $21.7 million or $0.46 per diluted share. For the first nine months of 2005, earnings were $61.6 million or $1.31 per diluted share. Chittenden also announced a share repurchase plan as well as its quarterly dividend of $0.18 per share, which will be paid on November 11, 2005, to shareholders of record on October 28, 2005.
THIRD QUARTER 2005 FINANCIAL HIGHLIGHTS
• | Earnings per share were 10% higher than the same period in 2004 fueled by expanding net interest income and strong expense control. |
• | Total loans increased 11% from September 30, 2004. Strong growth was noted on a year over year basis in several categories with commercial and commercial real estate loans up 13% and home equity loans up 10%. |
• | The Company’s deposits also experienced solid organic growth of 6% from September 30, 2004. |
• | The third quarter net interest margin increased 6 basis points from the second quarter of 2005 and 15 basis points from the third quarter of 2004. |
• | The Company’s efficiency ratio declined to 54.56% for the third quarter of 2005, the lowest level recorded in five years. |
• | The Company continued to experience low net charge-offs in the third quarter of 2005. The current quarter was the third consecutive quarterly period, and fifth out of the last seven, that net charge-offs were 1 basis point. Cumulative charge-offs since the first quarter of 2004 have only been 10 basis points. |
In making the announcement, Perrault said, “I continue to be very pleased with the financial results that we are achieving in 2005, both in terms of bottom line earnings improvement and the consistent successes in our core businesses of lending and deposit gathering. We are very focused on growing these businesses in each of our markets while remaining vigilant to maintain Chittenden’s stellar credit quality. This focus continues to benefit Chittenden’s many constituencies: shareholders, customers, and employees.”
Mr. Perrault also announced that the Board of Directors has authorized the repurchase of up to 1,000,000 shares of the Corporation’s common stock (approximately 2% of the Company’s outstanding Common Stock) in negotiated transactions or open market purchases. Chittenden, depending on market conditions, may repurchase its common stock without further Board authorization over the next two years.
Chittenden Corporation 2 Burlington Square P.O. Box 820 Burlington, Vermont 05402-0820 802-658-4000 | Kirk W. Walters (802) 660-1561 | |||
For Immediate Release
ASSETS
Total assets increased approximately $144 million from June 30, 2005 to $6.3 billion at September 30, 2005. Total loans increased $172 million, driven by increases in commercial, commercial real estate, municipal and construction loans. The Company’s commercial and commercial real estate loan portfolios have continued to achieve steady growth throughout the year and are not specifically concentrated in any one industry. The increase in municipal loans reflects a seasonal trend, as June 30th is historically the low point with respect to borrowing needs of municipalities, coinciding with their fiscal year-ends. The construction portfolio increased $49 million, primarily as a result of loans to our commercial customers in the Vermont, Massachusetts and New Hampshire markets.
LIABILITIES
Total deposits increased $249 million from June 30, 2005. The increase was driven primarily by the Company’s commercial and municipal customers, with higher levels of demand, CMA/money market deposits and jumbo CDs. Customer repurchase agreements and borrowings at September 30, 2005 declined by 31% from June 30, 2005. The decrease was due to higher levels of deposits, which were utilized to pay off short-term borrowings and fund loan growth.
NET INTEREST INCOME
Net interest income on a tax equivalent basis for the quarter ended September 30, 2005 was $62.8 million, an increase of 10.2% from the same period a year ago. The increase in net interest income was primarily due to continued growth in average earning assets and a higher net interest margin. The Company’s net interest margin for the third quarter was 4.35%, an increase from both the prior quarter and from the third quarter of 2004. The increase in the net interest margin from a year ago was primarily related to higher yields on loans driven by increases in the prime rate, as well as continued improvement in the Company’s asset mix which was partially offset by higher funding costs.
NONINTEREST INCOME
Noninterest income for the third quarter of 2005 was $17.8 million, up on a linked quarter basis and essentially flat with the same period a year ago. Investment management and trust income declined $532,000 from the same period in 2004 primarily due to lower annuity sales at Chittenden Securities, Inc. Mortgage servicing income increased from both the second quarter of 2005 and third quarter of 2004 due to higher impairment recoveries and lower amortization. Other noninterest income declined by $352,000 primarily due to the sale of a branch in the third quarter of 2004 which generated a gain of $757,000.
NONINTEREST EXPENSE
Noninterest expense was $44.7 million for the third quarter of 2005, an increase of $1.3 million on a linked quarter basis and $1.8 million from the same period a year ago. The increase from the second quarter of 2005 was attributable to a one-time benefit of $1.5 million recognized in pension expense in the prior quarter. The increase from the comparable quarter in 2004 is primarily a result of higher salary, employee benefit and net occupancy expenses, which was partially offset by lower conversion and restructuring charges.
INCOME TAXES
The effective income tax rate for 2005 was 36.2% for both the third quarter and year to date compared with 36.5% and 36.6% for the respective periods in 2004. The lower effective income tax rate for both periods was primarily attributable to higher tax credits from qualified low-income housing projects.
Chittenden Corporation 2 Burlington Square P.O. Box 820 Burlington, Vermont 05402-0820 802-658-4000 | Kirk W. Walters (802) 660-1561 | |||
For Immediate Release
CREDIT QUALITY
Net charge-offs as a percentage of average loans were 1 basis point for the third quarter of 2005, flat with the prior quarter and the same quarter a year ago. Nonperforming assets declined by 21% and as a percentage of total loans at the end of the third quarter of 2005 were 41 basis points, which was down from 54 basis points in the second quarter. As a percentage of total loans, the allowance for loan losses was 1.39%, down from 1.43% at June 30, 2005, and 1.47% at September 30, 2004.
EARNINGS CONFERENCE CALL
Kirk W. Walters, Executive Vice President and Chief Financial Officer of Chittenden Corporation, will host a conference call on October 20, 2005 at 10:30 am eastern time to discuss these earnings results. The Company may answer one or more questions concerning business and financial developments and trends and other business. Some of the responses to these questions may contain information that has not been previously disclosed. Interested parties may access the conference call by calling 866-831-6291, passcode 38033271. International dial-in number is 617-213-8860. Participants are asked to call in a few minutes prior to the call to allow time for registration. Internet access to the call is also available (listen only) by clicking “webcasts” under the Investor Resources section of the Company’s website athttp://www.chittendencorp.com. A replay of the call will be available through October 27, 2005 by calling 888-286-8010 (International dial number is 617-801-6888), passcode 55845991. A replay of the call will also be available on the Company’s website at the address above for an extended period of time.
Chittenden is a bank holding company headquartered in Burlington, Vermont. Through its subsidiary banks1, the Company offers a broad range of financial products and services to customers throughout Northern New England and Massachusetts, including deposit accounts and services; commercial and consumer loans; insurance; and investment and trust services to businesses, individuals, and the public sector. Chittenden Corporation’s news releases, including earnings announcements, are available on the Company’s website.
This press release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Chittenden intends for these forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of complying with these safe harbor provisions. These forward-looking statements are based on current plans and expectations, which are subject to a number of risk factors and uncertainties that could cause future results to differ materially from historical performance or future expectations.
These differences may be the result of various factors, including changes in general, national or regional economic conditions, changes in loan default and charge-off rates, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in interest rates, changes in levels of income and expense in noninterest income and expense related activities and other risk factors.
For further information on these risk factors and uncertainties, please see Chittenden’s filings with the Securities and Exchange Commission, including Chittenden’s Annual Report on Form 10-K for the year ended December 31, 2004. Chittenden undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or other changes.
1 | Chittenden’s subsidiaries are Chittenden Trust Company, The Bank of Western Massachusetts, Flagship Bank and Trust Company, Maine Bank & Trust Company, and Ocean National Bank. Chittenden Trust Company also operates under the name Chittenden Bank, CHZ Services Group, Mortgage Service Center, and it owns Chittenden Insurance Group, and Chittenden Securities, Inc. |
CHITTENDEN CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 150,409 | $ | 176,425 | $ | 146,861 | $ | 136,468 | $ | 165,191 | ||||||||||
Securities Available For Sale | 1,348,521 | 1,363,180 | 1,409,434 | 1,446,221 | 1,458,149 | |||||||||||||||
FRB / FHLB Stock | 19,352 | 19,352 | 19,352 | 19,243 | 19,243 | |||||||||||||||
Loans Held For Sale | 34,774 | 22,611 | 22,131 | 33,535 | 35,723 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial & Industrial | 841,430 | 831,537 | 812,050 | 801,369 | 770,933 | |||||||||||||||
Municipal | 156,630 | 79,070 | 98,128 | 106,120 | 105,781 | |||||||||||||||
Multi-Family | 192,563 | 185,920 | 180,632 | 182,541 | 181,622 | |||||||||||||||
Commercial Real Estate | 1,760,621 | 1,736,665 | 1,651,247 | 1,590,457 | 1,558,221 | |||||||||||||||
Construction | 173,909 | 124,648 | 133,799 | 174,283 | 143,871 | |||||||||||||||
Residential Real Estate | 724,873 | 733,472 | 712,133 | 688,017 | 685,714 | |||||||||||||||
Home Equity Credit Lines | 316,733 | 307,866 | 297,649 | 294,656 | 287,479 | |||||||||||||||
Consumer | 259,865 | 255,239 | 242,239 | 239,750 | 246,889 | |||||||||||||||
Total Loans | 4,426,624 | 4,254,417 | 4,127,877 | 4,077,193 | 3,980,510 | |||||||||||||||
Less: Allowance for Loan Losses | (61,468 | ) | (60,805 | ) | (59,811 | ) | (59,031 | ) | (58,598 | ) | ||||||||||
Net Loans | 4,365,156 | 4,193,612 | 4,068,066 | 4,018,162 | 3,921,912 | |||||||||||||||
Accrued Interest Receivable | 29,202 | 29,689 | 28,443 | 28,956 | 26,607 | |||||||||||||||
Other Assets | 81,616 | 78,629 | 66,746 | 64,970 | 67,056 | |||||||||||||||
Premises and Equipment, net | 70,509 | 71,632 | 72,336 | 74,271 | 73,927 | |||||||||||||||
Mortgage Servicing Rights | 12,970 | 12,073 | 12,074 | 11,826 | 12,119 | |||||||||||||||
Identified Intangibles | 18,320 | 18,983 | 19,648 | 20,422 | 21,196 | |||||||||||||||
Goodwill | 216,136 | 216,136 | 216,136 | 216,136 | 216,697 | |||||||||||||||
Total Assets | $ | 6,346,965 | $ | 6,202,322 | $ | 6,081,227 | $ | 6,070,210 | $ | 6,017,820 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 988,096 | $ | 934,234 | $ | 881,954 | $ | 890,561 | $ | 907,396 | ||||||||||
Savings | 499,119 | 502,525 | 514,215 | 519,623 | 534,286 | |||||||||||||||
NOW | 891,058 | 908,148 | 898,720 | 890,701 | 903,307 | |||||||||||||||
CMAs/ Money Market | 1,592,743 | 1,418,634 | 1,527,753 | 1,577,474 | 1,603,059 | |||||||||||||||
Certificates of Deposit less than $100,000 | 814,435 | 811,389 | 763,502 | 735,577 | 737,641 | |||||||||||||||
Certificates of Deposit $100,000 and Over | 607,897 | 569,505 | 477,019 | 424,794 | 406,788 | |||||||||||||||
Total Deposits | 5,393,348 | 5,144,435 | 5,063,163 | 5,038,730 | 5,092,477 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 64,114 | 56,775 | 91,443 | 76,716 | 71,056 | |||||||||||||||
Other Borrowings | 179,552 | 296,903 | 254,418 | 279,755 | 182,450 | |||||||||||||||
Accrued Expenses and Other Liabilities | 63,428 | 64,466 | 54,721 | 54,752 | 60,769 | |||||||||||||||
Total Liabilities | 5,700,442 | 5,562,579 | 5,463,745 | 5,449,953 | 5,406,752 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Common Stock | 50,220 | 50,210 | 50,207 | 50,204 | 50,202 | |||||||||||||||
Surplus | 250,009 | 249,117 | 248,864 | 249,036 | 248,828 | |||||||||||||||
Retained Earnings | 421,180 | 407,865 | 395,410 | 384,679 | 372,980 | |||||||||||||||
Treasury Stock, at cost | (65,684 | ) | (67,657 | ) | (68,233 | ) | (69,246 | ) | (71,017 | ) | ||||||||||
Other Comprehensive Income | (14,595 | ) | (4,978 | ) | (13,747 | ) | 672 | 5,377 | ||||||||||||
Directors Deferred Compensation to be Settled in Stock | 5,400 | 5,197 | 4,996 | 4,930 | 4,720 | |||||||||||||||
Unearned Portion of Employee Restricted Stock | (7 | ) | (11 | ) | (15 | ) | (18 | ) | (22 | ) | ||||||||||
Total Stockholders’ Equity | 646,523 | 639,743 | 617,482 | 620,257 | 611,068 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,346,965 | $ | 6,202,322 | $ | 6,081,227 | $ | 6,070,210 | $ | 6,017,820 | ||||||||||
CHITTENDEN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except for per share amounts)
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||
Interest Income: | ||||||||||||||
Loans | $ | 68,588 | $ | 53,090 | $ | 189,525 | $ | 152,805 | ||||||
Investments | 14,033 | 14,879 | 43,923 | 45,303 | ||||||||||
Total Interest Income | 82,621 | 67,969 | 233,448 | 198,108 | ||||||||||
Interest Expense: | ||||||||||||||
Deposits | 17,561 | 9,411 | 43,022 | 26,139 | ||||||||||
Borrowings | 2,845 | 1,889 | 9,146 | 5,664 | ||||||||||
Total Interest Expense | 20,406 | 11,300 | 52,168 | 31,803 | ||||||||||
Net Interest Income | 62,215 | 56,669 | 181,280 | 166,305 | ||||||||||
Provision for Loan Losses | 1,325 | 1,025 | 3,800 | 2,553 | ||||||||||
Net Interest Income after Provision for Loan Losses | 60,890 | 55,644 | 177,480 | 163,752 | ||||||||||
Noninterest Income: | ||||||||||||||
Investment Management and Trust | 4,996 | 5,528 | 14,970 | 16,300 | ||||||||||
Service Charges on Deposits | 4,053 | 4,241 | 12,187 | 13,707 | ||||||||||
Mortgage Servicing | 658 | (162 | ) | 1,222 | 419 | |||||||||
Gains on Sales of Loans, Net | 2,586 | 2,261 | 6,720 | 7,057 | ||||||||||
Gains on Sales of Securities | 7 | 186 | 6 | 2,228 | ||||||||||
Loss on Prepayments of Borrowings | — | — | — | (1,194 | ) | |||||||||
Credit Card, Net | 1,237 | 1,146 | 3,343 | 3,076 | ||||||||||
Insurance Commissions, Net | 1,341 | 1,389 | 5,231 | 5,742 | ||||||||||
Other | 2,900 | 3,252 | 8,834 | 9,147 | ||||||||||
Total Noninterest Income | 17,778 | 17,841 | 52,513 | 56,482 | ||||||||||
Noninterest Expense: | ||||||||||||||
Salaries | 22,245 | 20,652 | 65,719 | 63,317 | ||||||||||
Employee Benefits | 5,784 | 5,027 | 16,501 | 16,677 | ||||||||||
Net Occupancy | 5,844 | 5,481 | 18,194 | 17,259 | ||||||||||
Data Processing | 921 | 994 | 2,506 | 5,271 | ||||||||||
Amortization of Intangibles | 665 | 776 | 2,103 | 2,303 | ||||||||||
Conversion and Restructuring Charges | — | 505 | — | 1,975 | ||||||||||
Other | 9,201 | 9,376 | 28,457 | 26,574 | ||||||||||
Total Noninterest Expense | 44,660 | 42,811 | 133,480 | 133,376 | ||||||||||
Income Before Income Taxes | 34,008 | 30,674 | 96,513 | 86,858 | ||||||||||
Income Tax Expense | 12,321 | 11,196 | 34,938 | 31,759 | ||||||||||
Net Income | $ | 21,687 | $ | 19,478 | $ | 61,575 | $ | 55,099 | ||||||
Basic Earnings Per Share | $ | 0.47 | $ | 0.42 | $ | 1.33 | $ | 1.20 | ||||||
Diluted Earnings Per Share | 0.46 | 0.42 | 1.31 | 1.18 | ||||||||||
Dividends Per Share | 0.18 | 0.18 | 0.54 | 0.52 |
CHITTENDEN CORPORATION
SELECTED QUARTERLY FINANCIAL DATA
(Unaudited)
(In thousands, except ratios and per share amounts)
9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | 9/30/04 | ||||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||
Return on Average Tangible Equity1 | 21.25 | % | 21.37 | % | 20.35 | % | 21.25 | % | 22.13 | % | ||||||||||
Return on Average Equity | 13.39 | % | 13.27 | % | 12.46 | % | 12.95 | % | 13.11 | % | ||||||||||
Return on Average Tangible Assets1 | 1.46 | % | 1.44 | % | 1.36 | % | 1.39 | % | 1.40 | % | ||||||||||
Return on Average Assets | 1.38 | % | 1.36 | % | 1.28 | % | 1.31 | % | 1.31 | % | ||||||||||
Net Yield on Earning Assets | 4.35 | % | 4.29 | % | 4.30 | % | 4.27 | % | 4.20 | % | ||||||||||
Efficiency Ratio1 | 54.56 | % | 57.14 | % | 58.07 | % | 55.64 | % | 56.87 | % | ||||||||||
Tangible Capital Ratio | 6.74 | % | 6.78 | % | 6.53 | % | 6.58 | % | 6.46 | % | ||||||||||
Leverage Ratio | 9.08 | % | 8.78 | % | 8.66 | % | 8.42 | % | 8.39 | % | ||||||||||
Tier 1 Capital Ratio | 10.72 | % | 10.56 | % | 10.46 | % | 10.44 | % | 10.51 | % | ||||||||||
Total Capital Ratio | 11.89 | % | 11.75 | % | 11.65 | % | 11.64 | % | 11.76 | % | ||||||||||
Common Share Data | ||||||||||||||||||||
Common Shares Outstanding | 46,557 | 46,437 | 46,402 | 46,342 | 46,241 | |||||||||||||||
Weighted Average Shares Outstanding | 46,519 | 46,414 | 46,385 | 46,293 | 46,188 | |||||||||||||||
Weighted Average and Common Equivalent Shares Outstanding | 47,109 | 46,901 | 46,918 | 46,960 | 46,863 | |||||||||||||||
Book Value per Share | $ | 13.89 | $ | 13.78 | $ | 13.31 | $ | 13.38 | $ | 13.21 | ||||||||||
Tangible Book Value per Share1 | $ | 8.85 | $ | 8.71 | $ | 8.23 | $ | 8.28 | $ | 8.07 | ||||||||||
Credit Quality Data | ||||||||||||||||||||
Nonperforming Assets (including OREO) | $ | 18,299 | $ | 23,150 | $ | 20,692 | $ | 20,024 | $ | 21,565 | ||||||||||
90 days past due and still accruing | 2,720 | 1,981 | 4,543 | 2,604 | 3,140 | |||||||||||||||
Total | $ | 21,019 | $ | 25,131 | $ | 25,235 | $ | 22,628 | $ | 24,705 | ||||||||||
Nonperforming Assets to Loans Plus OREO | 0.41 | % | 0.54 | % | 0.50 | % | 0.49 | % | 0.54 | % | ||||||||||
Allowance to Loans | 1.39 | % | 1.43 | % | 1.45 | % | 1.45 | % | 1.47 | % | ||||||||||
Allowance to Loans (excluding Municipal) | 1.44 | % | 1.46 | % | 1.48 | % | 1.49 | % | 1.51 | % | ||||||||||
Allowance to Nonperforming Loans | 335.92 | % | 262.71 | % | 289.29 | % | 296.41 | % | 284.76 | % | ||||||||||
Gross Charge-offs | $ | 1,668 | $ | 1,313 | $ | 1,154 | $ | 2,821 | $ | 1,654 | ||||||||||
Gross Recoveries | 1,006 | 907 | 859 | 1,428 | 1,258 | |||||||||||||||
Net Charge-offs | $ | 662 | $ | 406 | $ | 295 | $ | 1,393 | $ | 396 | ||||||||||
Net Charge-offs to Average Loans | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.01 | % | ||||||||||
QTD Average Balance Sheet Data | ||||||||||||||||||||
Securities | $ | 1,341,648 | $ | 1,409,045 | $ | 1,450,210 | $ | 1,495,302 | $ | 1,440,938 | ||||||||||
Loans, Net | 4,316,317 | 4,174,491 | 4,057,647 | 4,000,917 | 3,892,431 | |||||||||||||||
Earning Assets | 5,738,499 | 5,644,833 | 5,568,124 | 5,572,226 | 5,414,750 | |||||||||||||||
Total Assets | 6,248,866 | 6,143,001 | 6,060,179 | 6,089,616 | 5,930,272 | |||||||||||||||
Deposits | 5,270,406 | 5,085,064 | 5,000,949 | 5,128,344 | 5,017,991 | |||||||||||||||
Borrowings | 272,257 | 367,617 | 386,613 | 291,919 | 267,323 | |||||||||||||||
Stockholders’ Equity | 642,803 | 629,042 | 621,276 | 615,420 | 591,137 |
1. Reconciliation of non-GAAP measurements to GAAP
Net Income (GAAP) | $ | 21,687 | $ | 20,806 | $ | 19,082 | $ | 20,028 | $ | 19,478 | ||||||||||
Amortization of core deposit intangible, net of tax | 432 | 431 | 503 | 503 | 504 | |||||||||||||||
Tangible Net Income (A) | $ | 22,119 | $ | 21,237 | $ | 19,585 | $ | 20,531 | $ | 19,982 | ||||||||||
Average Equity (GAAP) | 642,803 | 629,042 | 621,276 | 615,420 | 591,137 | |||||||||||||||
Average Core Deposit Intangible | 18,688 | 19,417 | 20,155 | 20,919 | 21,695 | |||||||||||||||
Average Deferred Tax on CDI | (4,960 | ) | (5,136 | ) | (5,311 | ) | (6,392 | ) | (6,392 | ) | ||||||||||
Average Goodwill | 216,136 | 216,136 | 216,136 | 216,502 | 216,697 | |||||||||||||||
Average Tangible Equity (B) | 412,939 | 398,625 | 390,296 | 384,391 | 359,137 | |||||||||||||||
Return on Average Tangible Equity (A) / (B) | 21.25 | % | 21.37 | % | 20.35 | % | 21.25 | % | 22.13 | % | ||||||||||
Average Assets (GAAP) | 6,248,866 | 6,143,001 | 6,060,179 | 6,089,616 | 5,930,272 | |||||||||||||||
Average Core Deposit Intangible | 18,688 | 19,417 | 20,155 | 20,919 | 21,695 | |||||||||||||||
Average Deferred Tax on CDI | (4,960 | ) | (5,136 | ) | (5,311 | ) | (6,392 | ) | (6,392 | ) | ||||||||||
Average Goodwill | 216,136 | 216,136 | 216,136 | 216,502 | 216,697 | |||||||||||||||
Average Tangible Assets (C) | 6,019,002 | 5,912,764 | 5,829,199 | 5,858,587 | 5,698,272 | |||||||||||||||
Return on Average Tangible Assets (A) / (C) | 1.46 | % | 1.44 | % | 1.36 | % | 1.39 | % | 1.40 | % |
Efficiency ratio: is computed by dividing total noninterest expense (less oreo expense, amortization expense and any nonrecurring items) by the sum of net interest income on a tax equivalent basis and total noninterest income (exclusive of gains and losses from bank investment securities and nonrecurring items). The Company uses this non-GAAP measure, which is used widely in the banking industry to provide important information regarding its operational efficiency, e.g. (44,660-6-665) / (62,849+17,778-7) = 54.56%.
Tangible book value: is computed by subtracting goodwill and identified intangibles from equity, and dividing the resultant number by common shares outstanding, e.g. (645,523-18,320-216,136) / 46,557= $8.85.