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 19, 2006 | 81/06 |
Chittenden Corporation Reports Higher Earnings Per Share and a
Stable Net Interest Margin
Burlington, VT – Chittenden Corporation (NYSE:CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault, today announced earnings for the quarter ended September 30, 2006 of $21.725 million, or $0.47 per diluted share, compared to $21.684 million or $0.46 per diluted share for the third quarter of 2005. For the first nine months of 2006, earnings were $62.932 million or $1.34 per diluted share, compared to $60.226 million or $1.28 per diluted share for the same period of a year ago. In making the announcement, Perrault said, “I am pleased to report that despite the difficult environment for banking, we are carefully managing our business while producing strong results for our shareholders.” Chittenden also announced its quarterly dividend of $0.20 per share, which will be paid on November 10, 2006, to shareholders of record on October 27, 2006.
THIRD QUARTER 2006 FINANCIAL HIGHLIGHTS
¨ | Loans increased 6% from September 30, 2005 with strong growth in several |
commercial categories.
¨ | Average deposits increased 3% from the third quarter of 2005, with solid in growth in CMA/money market deposits of 6%. |
¨ | Net interest margin held steady at 4.23%, up slightly from the first and second |
quarters of 2006.
¨ | Noninterest expenses decreased 3% from the second quarter of 2006 and |
increased only 1% compared to the third quarter of 2005.
ASSETS
Total loans were up $251 million from the third quarter of 2005 to $4.7 billion at September 30, 2006. The increase was driven by solid growth in the commercial real estate and construction portfolios, as well as loans secured by multi-family residential properties. Loan yields were up 12.8% as compared to the same period a year ago primarily due to the ongoing repricing of variable rate portfolio loans as well as new loan originations in a rising interest rate environment.
LIABILITIES
Total deposits were up $182 million from June 30, 2006 and $106 million from September 30, 2005. The increase on a linked quarter basis was primarily driven by the normal seasonal inflows from Chittenden’s municipal and captive customers. The year-over-year increase was due to higher levels of CMA/money market deposits and CDs, which were partially offset by declines in NOW and savings deposits. At September 30, 2006 other borrowings declined by $44 million from the same period in 2005 as a result of increased deposit flows.
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
Tax-equivalent net interest income grew to $63.5 million in the third quarter of 2006 as compared to $62.8 million for the same quarter of 2005. The increase in net interest income was primarily due to higher average earning assets, which was partially offset by a lower net interest margin. The Company’s net interest margin for the third quarter was 4.23%, an increase of 1 basis point from the second quarter of 2006 and a decrease of 12 basis points from the same period a year ago. The decline in the net interest margin from the third quarter of 2005 was primarily due to an increase in funding costs, which was partially offset by an increase in the yield on interest earning assets. The increase in the funding costs was driven by aggressive competition for deposits as well as the Federal Reserve increasing short-term interest rates.
NONINTEREST INCOME
Noninterest income was $16.1 million for the third quarter of 2006 as compared to $17.8 million for the same period a year ago. The decrease from 2005 was primarily due to a slowdown in mortgage banking revenues, which was partially offset by higher investment management fees and service charges on deposits. Mortgage banking revenues are derived primarily from two sources, the gain on sales of loans and mortgage servicing income. The gain on sales of loans declined 37% from the same quarter a year ago due to lower originations of mortgage loans. The decline in mortgage servicing income for the third quarter of 2006 was driven by a mortgage servicing rights impairment of $104,000 compared to a recovery of $146,000 in 2005. The decrease in other income primarily related to the early termination of the interest rate swaps on the Company’s Trust Preferred Securities and the reduction in accrued interest on income tax refunds.
NONINTEREST EXPENSE
Noninterest expenses for the third quarter of 2006 were $46.0 million, up slightly from the same period in 2005. The increase from the prior year was due to higher share-based compensation costs, which were $784,000 in the third quarter of 2006 as compared to $5,000 in the similar quarter a year ago. The decrease in noninterest expenses from the second quarter of 2006 primarily related to lower incentive, marketing, and legal costs. The Company’s efficiency ratio increased to 55.9% from 54.6% for the same period in 2005 due to lower noninterest income.
INCOME TAXES
The effective income tax rate was 30.3% in the third quarter of 2006 and 32.3% for the first nine months of 2006 compared with 34.8% and 34.6% for the respective periods in 2005. The lower effective income tax rate was primarily attributable to higher low-income housing and historic rehabilitation tax credits.
CREDIT QUALITY
The provision for credit losses was $1.7 million for the third quarter of 2006 compared to $1.3 million for the same quarter of 2005. The increase in the provision for credit losses from the comparable period in 2005 was primarily due to higher net charge offs and nonperforming loans. The allowance for credit losses as a percentage of total loans excluding municipal loans was 1.40% at September 30, 2006 as compared to 1.41% for the second quarter of 2006 and 1.44% for the third quarter of 2005.
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
EARNINGS CONFERENCE CALL
Kirk W. Walters, Executive Vice President and Chief Financial Officer of Chittenden Corporation, will host a conference call on October 19, 2006 at 10:30 a.m. eastern time to discuss these earnings results. The Company may answer one or more questions concerning business and financial developments, 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 866-202-4367, passcode 50843158. International dial-in number is 617-213-8845. 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, 2006 by calling 888-286-8010 (International dial number is 617-801-6888), passcode 14220640. 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 borrowings 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, 2005. 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, Chittenden Mortgage Services, and it owns Chittenden Insurance Group, LLC, and Chittenden Securities, LLC. |
CHITTENDEN | CORPORATION |
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
9/30/06 | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 145,393 | $ | 172,567 | $ | 142,887 | $ | 180,707 | $ | 150,409 | ||||||||||
Securities Available For Sale | 1,231,369 | 1,288,390 | 1,344,016 | 1,383,909 | 1,348,521 | |||||||||||||||
FRB and FHLB Stock | 16,124 | 18,577 | 19,352 | 19,352 | 19,352 | |||||||||||||||
Loans Held For Sale | 21,646 | 18,882 | 19,319 | 19,737 | 34,774 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial & Industrial (C&I) | 854,475 | 851,692 | 836,986 | 848,420 | 841,430 | |||||||||||||||
Municipal | 144,152 | 90,206 | 172,443 | 160,357 | 156,630 | |||||||||||||||
Multi-Family | 213,153 | 205,443 | 195,809 | 196,590 | 192,563 | |||||||||||||||
Commercial Real Estate | 1,933,279 | 1,884,716 | 1,827,096 | 1,778,202 | 1,760,621 | |||||||||||||||
Construction | 211,187 | 218,123 | 212,824 | 192,165 | 173,909 | |||||||||||||||
Residential Real Estate | 749,106 | 750,031 | 731,798 | 737,462 | 724,873 | |||||||||||||||
Home Equity Credit Lines | 325,814 | 319,606 | 316,355 | 316,465 | 316,733 | |||||||||||||||
Consumer | 246,394 | 254,839 | 254,719 | 257,829 | 259,865 | |||||||||||||||
Total Loans | 4,677,560 | 4,574,656 | 4,548,030 | 4,487,490 | 4,426,624 | |||||||||||||||
Less: Allowance for Loan Losses | (62,153 | ) | (62,070 | ) | (61,464 | ) | (60,822 | ) | (61,468 | ) | ||||||||||
Net Loans | 4,615,407 | 4,512,586 | 4,486,566 | 4,426,668 | 4,365,156 | |||||||||||||||
Accrued Interest Receivable | 32,393 | 31,138 | 32,772 | 32,621 | 29,202 | |||||||||||||||
Other Assets | 89,759 | 102,079 | 93,673 | 93,377 | 90,480 | |||||||||||||||
Premises and Equipment | 67,952 | 69,503 | 68,568 | 69,731 | 70,509 | |||||||||||||||
Mortgage Servicing Rights | 14,347 | 14,529 | 13,966 | 13,741 | 12,970 | |||||||||||||||
Identified Intangibles | 15,661 | 16,326 | 16,991 | 17,655 | 18,320 | |||||||||||||||
Goodwill | 216,038 | 216,038 | 216,038 | 216,038 | 216,136 | |||||||||||||||
Total Assets | $ | 6,466,089 | $ | 6,460,615 | $ | 6,454,148 | $ | 6,473,536 | $ | 6,355,829 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demands | $ | 971,378 | $ | 965,794 | $ | 929,718 | $ | 973,752 | $ | 988,096 | ||||||||||
Savings | 481,380 | 474,883 | 489,944 | 489,734 | 499,119 | |||||||||||||||
NOWs | 866,134 | 895,817 | 906,934 | 861,000 | 891,058 | |||||||||||||||
CMAs/ Money Markets | 1,658,319 | 1,441,573 | 1,584,777 | 1,749,878 | 1,592,743 | |||||||||||||||
Certificates of Deposit less than $100,000 | 858,834 | 878,181 | 853,645 | 814,289 | 814,435 | |||||||||||||||
Certificates of Deposit $100,000 and Over | 663,086 | 661,322 | 618,319 | 625,682 | 607,897 | |||||||||||||||
Total Deposits | 5,499,131 | 5,317,570 | 5,383,337 | 5,514,335 | 5,393,348 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 87,112 | 138,773 | 53,238 | 56,315 | 64,114 | |||||||||||||||
Other Borrowings | 135,975 | 285,497 | 288,482 | 171,008 | 179,552 | |||||||||||||||
Accrued Expenses and Other Liabilities | 63,162 | 63,299 | 59,295 | 60,488 | 63,428 | |||||||||||||||
Total Liabilities | 5,785,380 | 5,805,139 | 5,784,352 | 5,802,146 | 5,700,442 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Common Stock | 50,235 | 50,235 | 50,235 | 50,220 | 50,220 | |||||||||||||||
Surplus | 274,834 | 273,723 | 272,696 | 276,278 | 274,429 | |||||||||||||||
Retained Earnings | 454,985 | 442,456 | 430,811 | 419,057 | 405,624 | |||||||||||||||
Treasury Stock, at cost | (85,613 | ) | (85,678 | ) | (64,189 | ) | (60,801 | ) | (65,684 | ) | ||||||||||
Accumulated Other Comprehensive Income | (19,470 | ) | (30,924 | ) | (25,216 | ) | (18,968 | ) | (14,595 | ) | ||||||||||
Directors’ Deferred Compensation to be Settled in Stock | 5,738 | 5,664 | 5,459 | 5,604 | 5,400 | |||||||||||||||
Unearned Portion of Employee Restricted Stock | — | — | — | — | (7 | ) | ||||||||||||||
Total Stockholders’ Equity | 680,709 | 655,476 | 669,796 | 671,390 | 655,387 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,466,089 | $ | 6,460,615 | $ | 6,454,148 | $ | 6,473,536 | $ | 6,355,829 | ||||||||||
Prior year amounts reflect the modified retrospective application of SFAS 123-R “Accounting for Stock-Based Compensation.”
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, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Interest Income: | ||||||||||||
Loans | $ | 82,743 | $ | 68,588 | $ | 234,555 | $ | 189,525 | ||||
Investments | 13,539 | 14,033 | 42,353 | 43,923 | ||||||||
Total Interest Income | 96,282 | 82,621 | 276,908 | 233,448 | ||||||||
Interest Expense: | ||||||||||||
Deposits | 28,868 | 17,561 | 77,648 | 43,022 | ||||||||
Borrowings | 4,689 | 2,845 | 13,487 | 9,146 | ||||||||
Total Interest Expense | 33,557 | 20,406 | 91,135 | 52,168 | ||||||||
Net Interest Income | 62,725 | 62,215 | 185,773 | 181,280 | ||||||||
Provision for Credit Losses | 1,670 | 1,325 | 4,953 | 3,800 | ||||||||
Net Interest Income after Provision for Credit Losses | 61,055 | 60,890 | 180,820 | 177,480 | ||||||||
Noninterest Income: | ||||||||||||
Investment Management and Trust | 5,233 | 4,996 | 15,708 | 14,970 | ||||||||
Service Charges on Deposits | 4,277 | 4,053 | 12,564 | 12,187 | ||||||||
Mortgage Servicing | 382 | 658 | 1,702 | 1,222 | ||||||||
Gains on Sales of Loans | 1,624 | 2,586 | 4,897 | 6,720 | ||||||||
Credit Card Income | 1,376 | 1,237 | 3,837 | 3,343 | ||||||||
Insurance Commissions | 1,275 | 1,341 | 4,750 | 5,231 | ||||||||
Other | 1,970 | 2,907 | 8,794 | 8,840 | ||||||||
Total Noninterest Income | 16,137 | 17,778 | 52,252 | 52,513 | ||||||||
Noninterest Expense: | ||||||||||||
Salaries | 23,200 | 22,250 | 69,906 | 67,837 | ||||||||
Employee Benefits | 5,637 | 5,784 | 16,987 | 16,501 | ||||||||
Net Occupancy | 5,705 | 5,844 | 17,635 | 18,194 | ||||||||
Data Processing | 1,034 | 921 | 2,987 | 2,506 | ||||||||
Amortization of Intangibles | 665 | 665 | 1,994 | 2,103 | ||||||||
Other | 9,777 | 9,948 | 30,545 | 30,713 | ||||||||
Total Noninterest Expense | 46,018 | 45,412 | 140,054 | 137,854 | ||||||||
Income Before Income Taxes | 31,174 | 33,256 | 93,018 | 92,139 | ||||||||
Income Tax Expense | 9,449 | 11,572 | 30,086 | 31,913 | ||||||||
Net Income | $ | 21,725 | $ | 21,684 | $ | 62,932 | $ | 60,226 | ||||
Basic Earnings Per Share | $ | 0.47 | $ | 0.47 | $ | 1.36 | $ | 1.30 | ||||
Diluted Earnings Per Share | 0.47 | 0.46 | 1.34 | 1.28 | ||||||||
Dividends Per Share | 0.20 | 0.18 | 0.58 | 0.54 |
Prior year amounts reflect the modified retrospective application of SFAS 123-R “Accounting for Stock-Based Compensation.”
CHITTENDEN CORPORATION
SELECTED QUARTERLY FINANCIAL DATA
(Unaudited)
(In thousands, except ratios and per share amounts)
9/30/06 | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | ||||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||
Return on Average Tangible Equity1 | 20.20 | % | 19.87 | % | 18.92 | % | 20.47 | % | 20.80 | % | ||||||||||
Return on Average Equity | 13.00 | % | 12.75 | % | 12.21 | % | 13.11 | % | 13.20 | % | ||||||||||
Return on Average Tangible Assets1 | 1.41 | % | 1.38 | % | 1.35 | % | 1.43 | % | 1.46 | % | ||||||||||
Return on Average Assets | 1.33 | % | 1.30 | % | 1.27 | % | 1.35 | % | 1.37 | % | ||||||||||
Net Yield on Earning Assets | 4.23 | % | 4.22 | % | 4.20 | % | 4.30 | % | 4.35 | % | ||||||||||
Efficiency Ratio1 | 55.91 | % | 56.87 | % | 56.61 | % | 54.37 | % | 54.57 | % | ||||||||||
Tangible Capital Ratio | 7.20 | % | 6.79 | % | 7.02 | % | 7.01 | % | 6.88 | % | ||||||||||
Leverage Ratio | 9.24 | % | 9.04 | % | 9.38 | % | 9.21 | % | 9.13 | % | ||||||||||
Tier 1 Capital Ratio | 11.59 | % | 11.29 | % | 11.61 | % | 11.23 | % | 10.90 | % | ||||||||||
Total Capital Ratio | 12.80 | % | 12.49 | % | 12.82 | % | 12.40 | % | 12.07 | % | ||||||||||
Common Share Data | ||||||||||||||||||||
Common Shares Outstanding | 45,994 | 45,978 | 46,748 | 46,829 | 46,557 | |||||||||||||||
Weighted Average Shares Outstanding | 45,982 | 46,423 | 46,804 | 46,690 | 46,519 | |||||||||||||||
Weighted Average and Common Equivalent Shares Outstanding | 46,504 | 46,903 | 47,401 | 47,291 | 47,109 | |||||||||||||||
Book Value per Share | $ | 14.80 | $ | 14.26 | $ | 14.33 | $ | 14.34 | $ | 14.08 | ||||||||||
Tangible Book Value per Share1 | $ | 9.76 | $ | 9.20 | $ | 9.34 | $ | 9.35 | $ | 9.04 | ||||||||||
Credit Quality Data | ||||||||||||||||||||
Nonperforming Assets (NPAs) | $ | 26,089 | $ | 24,727 | $ | 24,844 | $ | 16,194 | $ | 18,299 | ||||||||||
90 days Past Due and Still Accruing | 3,196 | 2,283 | 3,323 | 3,038 | 2,720 | |||||||||||||||
Total | $ | 29,285 | $ | 27,010 | $ | 28,167 | $ | 19,232 | $ | 21,019 | ||||||||||
NPAs to Loans Plus OREO | 0.56 | % | 0.54 | % | 0.55 | % | 0.36 | % | 0.41 | % | ||||||||||
Allowance for Loan Losses | $ | 62,153 | $ | 62,070 | $ | 61,464 | $ | 60,822 | $ | 61,468 | ||||||||||
Reserve for Unfunded Commitments2 | 1,200 | 1,200 | 1,200 | 1,200 | — | |||||||||||||||
Allowance for Credit Losses (ACL) | $ | 63,353 | $ | 63,270 | $ | 62,664 | $ | 62,022 | 61,468 | |||||||||||
ACL to Loans | 1.35 | % | 1.38 | % | 1.38 | % | 1.38 | % | 1.39 | % | ||||||||||
ACL to Loans (excluding Municipals) | 1.40 | % | 1.41 | % | 1.43 | % | 1.43 | % | 1.44 | % | ||||||||||
ACL to Nonperforming Loans | 248.90 | % | 260.13 | % | 257.81 | % | 392.06 | % | 335.92 | % | ||||||||||
Charge-offs | $ | 2,093 | $ | 1,872 | $ | 1,753 | $ | 1,840 | $ | 1,668 | ||||||||||
Recoveries | 506 | 728 | 862 | 1,040 | 1,006 | |||||||||||||||
Net Charge-offs | $ | 1,587 | $ | 1,144 | $ | 891 | $ | 800 | $ | 662 | ||||||||||
Net Charge-offs to Average Loans | 0.03 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.01 | % | ||||||||||
QTD Average Balance Sheet Data | ||||||||||||||||||||
Securities | $ | 1,269,907 | $ | 1,333,444 | $ | 1,391,413 | $ | 1,378,688 | $ | 1,341,648 | ||||||||||
Loans, Net | 4,626,194 | 4,552,727 | 4,455,403 | 4,408,205 | 4,316,317 | |||||||||||||||
Earning Assets | 5,959,599 | 5,948,463 | 5,915,366 | 5,895,121 | 5,738,499 | |||||||||||||||
Total Assets | 6,482,127 | 6,462,457 | 6,430,410 | 6,418,971 | 6,257,730 | |||||||||||||||
Deposits | 5,442,894 | 5,372,367 | 5,377,674 | 5,454,388 | 5,270,406 | |||||||||||||||
Borrowings | 312,430 | 367,521 | 321,073 | 246,660 | 272,257 | |||||||||||||||
Stockholders’ Equity | 662,964 | 661,020 | 671,058 | 660,353 | 651,667 |
Prior year amounts reflect the modified retrospective application of SFAS 123-R “Accounting for Stock-Based Compensation.”
1. | Reconciliation of non-GAAP measurements |
9/30/06 | 6/30/06 | 3/31/06 | 12/30/05 | 9/30/05 | ||||||||||||||||
Net Income (GAAP) | $ | 21,725 | $ | 21,009 | $ | 20,198 | $ | 21,813 | $ | 21,684 | ||||||||||
Amortization of Core Deposit Intangible, net of tax | 432 | 431 | 432 | 432 | 432 | |||||||||||||||
Tangible Net Income (A) | 22,157 | $ | 21,440 | $ | 20,630 | $ | 22,245 | 22,116 | ||||||||||||
Average Stockholders’ Equity (GAAP) | $ | 662,964 | $ | 661,020 | $ | 671,058 | $ | 660,353 | $ | 651,667 | ||||||||||
Average Core Deposit Intangible (CDI) | 15,996 | 16,659 | 17,323 | 17,992 | 18,688 | |||||||||||||||
Average Deferred Tax on CDI | (4,345 | ) | (4,435 | ) | (4,610 | ) | (4,785 | ) | (4,960 | ) | ||||||||||
Average Goodwill | 216,038 | 216,038 | 216,038 | 216,103 | 216,136 | |||||||||||||||
Average Tangible Equity (B) | $ | 435,275 | $ | 432,758 | $ | 442,307 | $ | 431,043 | $ | 421,803 | ||||||||||
Return on Average Tangible Equity (A) / (B) | 20.20 | % | 19.87 | % | 18.92 | % | 20.47 | % | 20.80 | % | ||||||||||
Average Assets (GAAP) | $ | 6,482,127 | $ | 6,462,457 | $ | 6,430,410 | $ | 6,418,971 | $ | 6,257,730 | ||||||||||
Average CDI | 15,996 | 16,659 | 17,323 | 17,992 | 18,688 | |||||||||||||||
Average Deferred Tax on CDI | (4,345 | ) | (4,435 | ) | (4,610 | ) | (4,785 | ) | (4,960 | ) | ||||||||||
Average Goodwill | 216,038 | 216,038 | 216,038 | 216,103 | 216,136 | |||||||||||||||
Average Tangible Assets (C) | $ | 6,254,438 | $ | 6,234,195 | $ | 6,201,659 | $ | 6,189,661 | $ | 6,027,866 | ||||||||||
Return on Average Tangible Assets (A) / (C) | 1.41 | % | 1.38 | % | 1.35 | % | 1.43 | % | 1.46 | % |
Efficiency Ratio: is computed by dividing total noninterest expense (less oreo expense, amortization expense, franchise tax 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 securities, and nonrecurring items). This non-GAAP measure is used widely in the banking industry to provide important information regarding operational efficiency, e.g. ($46,018-$3-$665-$838) / ($63,481+$16,137) = 55.91%
Tangible book value per share: is computed by subtracting goodwill and identified intangibles from equity, and dividing the resulting number by common shares outstanding, e.g. ($680,709-$216,038-$15,661) / 45,994= $9.76.
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.