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
January 19, 2006 | 02/06 |
Chittenden Corporation Reports Record Earnings and Announces Quarterly Dividend
Burlington, VT – Chittenden Corporation (NYSE:CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault, today announced record earnings for the quarter ended December 31, 2005, of $21.8 million, or $0.46 per diluted share. For the twelve months of 2005, earnings were a record $83.4 million, 11% higher than in 2004, or $1.77 per diluted share. Chittenden also announced its quarterly dividend of $0.18 per share, which will be paid on February 10, 2006, to shareholders of record on January 27, 2006.
FOURTH QUARTER 2005 FINANCIAL HIGHLIGHTS
• | Earnings were 9% higher than the same period in 2004 driven by expanding net interest income, excellent credit quality and strong expense control. |
• | Total loans increased more than 10% from year-end 2004 with strong growth in several commercial categories. |
• | Total deposits also experienced strong organic growth of more than 9% from December 31, 2004. |
• | The efficiency ratio declined to 54.37% for the fourth quarter of 2005, which is the lowest level in the last six years. |
• | Nonperforming assets (NPAs) declined 19% from the end of 2004 and the NPAs to loans ratio of 36 basis points is the lowest in six years. Chittenden experienced only 5 basis points in net charge-offs for 2005 which is the lowest level in more than 10 years. |
In making the announcement, Perrault said, “I am extremely pleased to report these record setting results. We have proven time and time again that we can make progress in a variety of economic cycles. I expect as interest rates begin to stabilize in 2006 that the numerous competitive pressures we face will only intensify. Maintaining our usual diligence and focus on providing thoughtful financial solutions for customers will be critical to our ability to continue to consistently deliver strong results.”
ASSETS
Total assets increased approximately $394 million or 6.5% from a year ago to $6.5 billion at December 31, 2005. Total loans increased $410 million to $4.5 billion at December 31, 2005. The increases were attributable to continued growth across all loan categories, particularly in the commercial and commercial real estate portfolios, residential real estate loans, and municipal loans. The growth in commercial and commercial real estate was particularly strong in Vermont, New Hampshire and Massachusetts. In addition, financings for commercial customers also influenced the construction loan portfolio growth, which increased $18 million from year-end 2004.
LIABILITIES
Total deposits increased $476 million from year-end 2004 and $121 million from September 30, 2005. The increase from December 31, 2004 was driven primarily by commercial and municipal customers and resulted in higher activity in demand, CMA/money market accounts, and jumbo CDs. Borrowings at December 31, 2005 were $227 million, compared with $356 million at December 31, 2004 and $244 million at September 30, 2005. The decrease from December 31, 2004 was due to higher levels of deposits, which were utilized to reduce short-term borrowings and fund loan growth.
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
NET INTEREST INCOME
Net interest income on a tax equivalent basis for the three months ended December 31, 2005 was $63.7 million, which was up approximately $900,000 on a linked quarter basis and $4.1 million from the same period a year ago. The increase in net interest income from the same period a year ago was due to continued growth in average earning assets as well as a higher net interest margin. The Company’s net interest margin for the fourth quarter was 4.30%, an increase of 3 basis points from the fourth quarter of last year and a decrease of 5 basis points from the third quarter of 2005. The increase in the net interest margin from the same period a year ago primarily related to a higher yield on loans, which was driven by increases in the prime rate, as well as continued improvement in the Company’s asset mix. The decline on a linked quarter basis was due to higher funding costs, slower loan growth and lower interest recoveries on non-performing assets. For 2005 the net interest margin was 4.31% compared with 4.21% for 2004.
NONINTEREST INCOME
Noninterest income for the fourth quarter of 2005 was $17.4 million, up $528,000 from the same period a year ago and down $327,000 on a linked quarter basis. Investment management and trust income declined $275,000 from the same period in 2004 primarily due to lower annuity sales. Mortgage servicing income increased $867,000 from the fourth quarter of 2004 due to lower impairment charges and lower amortization. Gains on sales of mortgage loans decreased $303,000 from the fourth quarter of 2004 due to lower volumes of loan sales caused by higher mortgage interest rates. Other noninterest income increased $569,000 from the same period in 2004 primarily due to higher late fees, payroll services income and other income. The decrease in noninterest income from the third quarter of 2005 was due to lower gains on sales of loans and insurance commissions.
NONINTEREST EXPENSE
Noninterest expense was $45.2 million for the fourth quarter of 2005, an increase of $568,000 on a linked quarter basis and $2.2 million from the same period a year ago. The increase on a linked quarter basis was due to higher other expense, which was partially offset by lower salary expense. The increase in other expense was primarily due to higher marketing, accounting and miscellaneous charge-offs. The lower salary expense related to reduced levels of incentive compensation, as well as lower sales based commissions. The increase from the same quarter a year ago is primarily a result of higher employee benefits, net occupancy and other expense. The increase in employee benefits related to higher pension costs. Net occupancy expense increased due to higher utility and property expenses as well as the opening of new branches in Westborough, Massachusetts and Manchester, New Hampshire. The increase in other expenses was primarily due to higher marketing, accounting and legal expense.
INCOME TAXES
The effective income tax rates for 2005 were 35.7% for the fourth quarter and 36.1% for the full year compared with 36.0% and 36.4% for the respective periods in 2004. The lower effective income tax rates were primarily attributable to higher levels of tax-exempt municipal loan interest income.
CREDIT QUALITY
Net charge-offs as a percentage of average loans were 2 basis points in the fourth quarter and 5 basis points for the year ended December 31, 2005, compared to 3 basis points and 7 basis points for the respective periods in 2004. Net charge-offs on a year-to-date basis totaled $2.2 million compared with $2.8 million in 2004. Nonperforming assets were $16.2 million at December 31, 2005, down 11% from September 30, 2005 and 19% from December 31, 2004. Nonperforming assets as a percentage of total loans at the end of the fourth quarter of 2005 were 36 basis points, which was down from 41 basis points
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
in the third quarter of 2005 and 49 basis points at the end of 2004. As a percentage of total loans, the allowance for credit losses was 1.38%, down from 1.39% at September 30, 2005, and 1.45% at December 31, 2004.
EARNINGS CONFERENCE CALL
Kirk W. Walters, Executive Vice President and Chief Financial Officer of Chittenden Corporation, will host a conference call on January 19, 2006 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 800-659-1966, passcode 70580966. International dial-in number is 617-614-2711. 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 January 26, 2006 by calling 888-286-8010 (International dial number is 617-801-6888), passcode 34931005. 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, competition 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 names 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)
12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 180,707 | $ | 150,409 | $ | 176,425 | $ | 146,861 | $ | 136,468 | ||||||||||
Securities Available For Sale | 1,383,909 | 1,348,521 | 1,363,180 | 1,409,434 | 1,446,221 | |||||||||||||||
FRB / FHLB Stock | 19,352 | 19,352 | 19,352 | 19,352 | 19,243 | |||||||||||||||
Loans Held For Sale | 19,737 | 34,774 | 22,611 | 22,131 | 33,535 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial & Industrial | 848,420 | 841,430 | 831,537 | 812,050 | 801,369 | |||||||||||||||
Municipal | 160,357 | 156,630 | 79,070 | 98,128 | 106,120 | |||||||||||||||
Multi-Family | 196,590 | 192,563 | 185,920 | 180,632 | 182,541 | |||||||||||||||
Commercial Real Estate | 1,778,202 | 1,760,621 | 1,736,665 | 1,651,247 | 1,590,457 | |||||||||||||||
Construction | 192,165 | 173,909 | 124,648 | 133,799 | 174,283 | |||||||||||||||
Residential Real Estate | 737,462 | 724,873 | 733,472 | 712,133 | 688,017 | |||||||||||||||
Home Equity Credit Lines | 316,465 | 316,733 | 307,866 | 297,649 | 294,656 | |||||||||||||||
Consumer | 257,829 | 259,865 | 255,239 | 242,239 | 239,750 | |||||||||||||||
Total Loans | 4,487,490 | 4,426,624 | 4,254,417 | 4,127,877 | 4,077,193 | |||||||||||||||
Less: Allowance for Loan Losses | (60,822 | ) | (61,468 | ) | (60,805 | ) | (59,811 | ) | (59,031 | ) | ||||||||||
Net Loans | 4,426,668 | 4,365,156 | 4,193,612 | 4,068,066 | 4,018,162 | |||||||||||||||
Accrued Interest Receivable | 32,621 | 29,202 | 29,689 | 28,443 | 28,956 | |||||||||||||||
Other Assets | 84,511 | 81,616 | 78,629 | 66,746 | 64,970 | |||||||||||||||
Premises and Equipment, net | 69,731 | 70,509 | 71,632 | 72,336 | 74,271 | |||||||||||||||
Mortgage Servicing Rights | 13,741 | 12,970 | 12,073 | 12,074 | 11,826 | |||||||||||||||
Identified Intangibles | 17,655 | 18,320 | 18,983 | 19,648 | 20,422 | |||||||||||||||
Goodwill | 216,038 | 216,136 | 216,136 | 216,136 | 216,136 | |||||||||||||||
Total Assets | $ | 6,464,670 | $ | 6,346,965 | $ | 6,202,322 | $ | 6,081,227 | $ | 6,070,210 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 973,752 | $ | 988,096 | $ | 934,234 | $ | 881,954 | $ | 890,561 | ||||||||||
Savings | 489,734 | 499,119 | 502,525 | 514,215 | 519,623 | |||||||||||||||
NOW | 861,000 | 891,058 | 908,148 | 898,720 | 890,701 | |||||||||||||||
CMAs/ Money Market | 1,749,878 | 1,592,743 | 1,418,634 | 1,527,753 | 1,577,474 | |||||||||||||||
Certificates of Deposit less than $100,000 | 814,289 | 814,435 | 811,389 | 763,502 | 735,577 | |||||||||||||||
Certificates of Deposit $100,000 and Over | 625,682 | 607,897 | 569,505 | 477,019 | 424,794 | |||||||||||||||
Total Deposits | 5,514,335 | 5,393,348 | 5,144,435 | 5,063,163 | 5,038,730 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 56,315 | 64,114 | 56,775 | 91,443 | 76,716 | |||||||||||||||
Other Borrowings | 171,008 | 179,552 | 296,903 | 254,418 | 279,755 | |||||||||||||||
Accrued Expenses and Other Liabilities | 60,488 | 63,428 | 64,466 | 54,721 | 54,752 | |||||||||||||||
Total Liabilities | 5,802,146 | 5,700,442 | 5,562,579 | 5,463,745 | 5,449,953 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Common Stock | 50,220 | 50,220 | 50,210 | 50,207 | 50,204 | |||||||||||||||
Surplus | 251,825 | 250,009 | 249,117 | 248,864 | 249,036 | |||||||||||||||
Retained Earnings | 434,644 | 421,180 | 407,865 | 395,410 | 384,679 | |||||||||||||||
Treasury Stock, at cost | (60,801 | ) | (65,684 | ) | (67,657 | ) | (68,233 | ) | (69,246 | ) | ||||||||||
Other Comprehensive Income | (18,968 | ) | (14,595 | ) | (4,978 | ) | (13,747 | ) | 672 | |||||||||||
Directors Deferred Compensation to be Settled in Stock | 5,604 | 5,400 | 5,197 | 4,996 | 4,930 | |||||||||||||||
Unearned Portion of Employee Restricted Stock | — | (7 | ) | (11 | ) | (15 | ) | (18 | ) | |||||||||||
Total Stockholders’ Equity | 662,524 | 646,523 | 639,743 | 617,482 | 620,257 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,464,670 | $ | 6,346,965 | $ | 6,202,322 | $ | 6,081,227 | $ | 6,070,210 | ||||||||||
CHITTENDEN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except for per share amounts)
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||
Interest Income: | ||||||||||||||
Loans | $ | 71,834 | $ | 56,302 | $ | 261,359 | $ | 209,107 | ||||||
Investments | 14,960 | 15,359 | 58,883 | 60,660 | ||||||||||
Total Interest Income | 86,794 | 71,661 | 320,242 | 269,767 | ||||||||||
Interest Expense: | ||||||||||||||
Deposits | 20,904 | 10,300 | 63,926 | 36,439 | ||||||||||
Borrowings | 2,857 | 2,167 | 12,003 | 7,830 | ||||||||||
Total Interest Expense | 23,761 | 12,467 | 75,929 | 44,269 | ||||||||||
Net Interest Income | 63,033 | 59,194 | 244,313 | 225,498 | ||||||||||
Provision for Credit Losses | 1,354 | 1,825 | 5,154 | 4,377 | ||||||||||
Net Interest Income after Provision for Credit Losses | 61,679 | 57,369 | 239,159 | 221,121 | ||||||||||
Noninterest Income: | ||||||||||||||
Investment Management and Trust | 5,047 | 5,322 | 20,017 | 21,622 | ||||||||||
Service Charges on Deposits | 3,926 | 4,179 | 16,113 | 17,886 | ||||||||||
Mortgage Servicing Income (Loss) | 607 | (260 | ) | 1,829 | 159 | |||||||||
Gains on Sales of Loans, Net | 2,301 | 2,604 | 9,021 | 9,661 | ||||||||||
Gains on Sales of Securities | — | 107 | 6 | 2,335 | ||||||||||
Loss on Prepayments of Borrowings | — | — | — | (1,194 | ) | |||||||||
Credit Card, Net | 1,193 | 1,074 | 4,536 | 4,150 | ||||||||||
Insurance Commissions, Net | 1,134 | 1,223 | 6,365 | 6,966 | ||||||||||
Other | 3,243 | 2,674 | 12,077 | 11,820 | ||||||||||
Total Noninterest Income | 17,451 | 16,923 | 69,964 | 73,405 | ||||||||||
Noninterest Expense: | ||||||||||||||
Salaries | 21,655 | 21,302 | 87,374 | 84,619 | ||||||||||
Employee Benefits | 5,717 | 5,281 | 22,218 | 21,958 | ||||||||||
Net Occupancy | 5,900 | 5,410 | 24,094 | 22,669 | ||||||||||
Data Processing | 951 | 916 | 3,457 | 6,188 | ||||||||||
Amortization of Intangibles | 665 | 774 | 2,768 | 3,077 | ||||||||||
Conversion and Restructuring Charges | — | 291 | — | 2,266 | ||||||||||
Other | 10,340 | 9,022 | 38,797 | 35,595 | ||||||||||
Total Noninterest Expense | 45,228 | 42,996 | 178,708 | 176,372 | ||||||||||
Income Before Income Taxes | 33,902 | 31,296 | 130,415 | 118,154 | ||||||||||
Income Tax Expense | 12,086 | 11,268 | 47,024 | 43,027 | ||||||||||
Net Income | $ | 21,816 | $ | 20,028 | $ | 83,391 | $ | 75,127 | ||||||
Basic Earnings Per Share | $ | 0.46 | $ | 0.43 | $ | 1.79 | $ | 1.63 | ||||||
Diluted Earnings Per Share | 0.46 | 0.43 | 1.77 | 1.61 | ||||||||||
Dividends Per Share | 0.18 | 0.18 | 0.72 | 0.70 |
CHITTENDEN CORPORATION
SELECTED QUARTERLY FINANCIAL DATA
(Unaudited)
(In thousands, except ratios and per share amounts)
12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||
Return on Average Tangible Equity1 | 20.91 | % | 21.25 | % | 21.37 | % | 20.35 | % | 21.25 | % | ||||||||||
Return on Average Equity | 13.29 | % | 13.39 | % | 13.27 | % | 12.46 | % | 12.95 | % | ||||||||||
Return on Average Tangible Assets1 | 1.43 | % | 1.46 | % | 1.44 | % | 1.36 | % | 1.39 | % | ||||||||||
Return on Average Assets | 1.35 | % | 1.38 | % | 1.36 | % | 1.28 | % | 1.31 | % | ||||||||||
Net Yield on Earning Assets | 4.30 | % | 4.35 | % | 4.29 | % | 4.30 | % | 4.27 | % | ||||||||||
Efficiency Ratio1 | 54.37 | % | 54.56 | % | 57.14 | % | 58.07 | % | 55.64 | % | ||||||||||
Tangible Capital Ratio | 6.88 | % | 6.74 | % | 6.78 | % | 6.53 | % | 6.58 | % | ||||||||||
Leverage Ratio | 9.09 | % | 9.08 | % | 8.78 | % | 8.66 | % | 8.42 | % | ||||||||||
Tier 1 Capital Ratio | 11.05 | % | 10.72 | % | 10.56 | % | 10.46 | % | 10.44 | % | ||||||||||
Total Capital Ratio | 12.23 | % | 11.89 | % | 11.75 | % | 11.65 | % | 11.64 | % | ||||||||||
Common Share Data | ||||||||||||||||||||
Common Shares Outstanding | 46,829 | 46,557 | 46,437 | 46,402 | 46,342 | |||||||||||||||
Weighted Average Shares Outstanding | 46,690 | 46,519 | 46,414 | 46,385 | 46,293 | |||||||||||||||
Weighted Average and Common Equivalent Shares Outstanding | 47,291 | 47,109 | 46,901 | 46,918 | 46,960 | |||||||||||||||
Book Value per Share | $ | 14.15 | $ | 13.89 | $ | 13.78 | $ | 13.31 | $ | 13.38 | ||||||||||
Tangible Book Value per Share1 | $ | 9.16 | $ | 8.85 | $ | 8.71 | $ | 8.23 | $ | 8.28 | ||||||||||
Credit Quality Data | ||||||||||||||||||||
Nonperforming Assets (including OREO) | $ | 16,194 | $ | 18,299 | $ | 23,150 | $ | 20,692 | $ | 20,024 | ||||||||||
90 days past due and still accruing | 3,038 | 2,720 | 1,981 | 4,543 | 2,604 | |||||||||||||||
Total | $ | 19,232 | $ | 21,019 | $ | 25,131 | $ | 25,235 | $ | 22,628 | ||||||||||
Nonperforming Assets to Loans Plus OREO | 0.36 | % | 0.41 | % | 0.54 | % | 0.50 | % | 0.49 | % | ||||||||||
Allowance for Loan Losses | $ | 60,822 | $ | 61,468 | $ | 60,805 | $ | 59,811 | $ | 59,031 | ||||||||||
Reserve for Unfunded Commitments2 | 1,200 | — | — | — | — | |||||||||||||||
Allowance for Credit Losses | $ | 62,022 | $ | 61,468 | $ | 60,805 | $ | 59,811 | $ | 59,031 | ||||||||||
Allowance for credit losses to Loans | 1.38 | % | 1.39 | % | 1.43 | % | 1.45 | % | 1.45 | % | ||||||||||
Allowance for credit losses to Loans (excluding Municipals) | 1.43 | % | 1.44 | % | 1.46 | % | 1.48 | % | 1.49 | % | ||||||||||
Allowance for credit losses to Nonperforming Loans | 392.06 | % | 335.92 | % | 262.71 | % | 289.29 | % | 296.41 | % | ||||||||||
Gross Charge-offs | $ | 1,840 | $ | 1,668 | $ | 1,313 | $ | 1,154 | $ | 2,821 | ||||||||||
Gross Recoveries | 1,040 | 1,006 | 907 | 859 | 1,428 | |||||||||||||||
Net Charge-offs | $ | 800 | $ | 662 | $ | 406 | $ | 295 | $ | 1,393 | ||||||||||
Net Charge-offs to Average Loans | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | ||||||||||
QTD Average Balance Sheet Data | ||||||||||||||||||||
Securities | $ | 1,378,688 | $ | 1,341,648 | $ | 1,409,045 | $ | 1,450,210 | $ | 1,495,302 | ||||||||||
Loans, Net | 4,408,205 | 4,316,317 | 4,174,491 | 4,057,647 | 4,000,917 | |||||||||||||||
Earning Assets | 5,895,121 | 5,738,499 | 5,644,833 | 5,568,124 | 5,572,226 | |||||||||||||||
Total Assets | 6,410,105 | 6,248,866 | 6,143,001 | 6,060,179 | 6,089,616 | |||||||||||||||
Deposits | 5,454,388 | 5,270,406 | 5,085,064 | 5,000,949 | 5,128,344 | |||||||||||||||
Borrowings | 246,660 | 272,257 | 367,617 | 386,613 | 291,919 | |||||||||||||||
Stockholders’ Equity | 651,487 | 642,803 | 629,042 | 621,276 | 615,420 |
1. Reconciliation of non-GAAP measurements to GAAP
Net Income (GAAP) | $ | 21,816 | $ | 21,687 | $ | 20,806 | $ | 19,082 | $ | 20,028 | ||||||||||
Amortization of core deposit intangible, net of tax | 432 | 432 | 431 | 503 | 503 | |||||||||||||||
Tangible Net Income (A) | 22,248 | 22,119 | 21,237 | 19,585 | 20,531 | |||||||||||||||
Average Equity (GAAP) | 651,487 | 642,803 | 629,042 | 621,276 | 615,420 | |||||||||||||||
Average Core Deposit Intangible | 17,992 | 18,688 | 19,417 | 20,155 | 20,919 | |||||||||||||||
Average Deferred Tax on CDI | (4,785 | ) | (4,960 | ) | (5,136 | ) | (5,311 | ) | (6,392 | ) | ||||||||||
Average Goodwill | 216,103 | 216,136 | 216,136 | 216,136 | 216,502 | |||||||||||||||
Average Tangible Equity (B) | 422,177 | 412,939 | 398,625 | 390,296 | 384,391 | |||||||||||||||
Return on Average Tangible Equity (A) / (B) | 20.91 | % | 21.25 | % | 21.37 | % | 20.35 | % | 21.25 | % | ||||||||||
Average Assets (GAAP) | 6,410,105 | 6,248,866 | 6,143,001 | 6,060,179 | 6,089,616 | |||||||||||||||
Average Core Deposit Intangible | 17,992 | 18,688 | 19,417 | 20,155 | 20,919 | |||||||||||||||
Average Deferred Tax on CDI | (4,785 | ) | (4,960 | ) | (5,136 | ) | (5,311 | ) | (6,392 | ) | ||||||||||
Average Goodwill | 216,103 | 216,136 | 216,136 | 216,136 | 216,502 | |||||||||||||||
Average Tangible Assets (C) | 6,180,795 | 6,019,002 | 5,912,584 | 5,829,199 | 5,858,587 | |||||||||||||||
Return on Average Tangible Assets (A) / (C) | 1.43 | % | 1.46 | % | 1.44 | % | 1.36 | % | 1.39 | % |
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. (45,228+48-665-488) / (63,703+17,451) = 54.37%.
Tangible book value: is computed by subtracting goodwill and identified intangibles from equity, and dividing the resultant number by common shares outstanding, e.g. (662,524-17,655-216,038) / 46,829= $9.16.
While the Company’s management uses non-GAAP measures for operational and investment decisions and believes that these measures are among several useful measures for understanding its operating results and financial condition, these measures should not be construed as a substitute for GAAP measures. Non-GAAP measures should be read and used in conjunction with the Company’s reported GAAP operating results and financial information.
2. The reserve for unfunded commitments is included in other liabilities on the accompanying consolidated balance sheet.