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 18, 2007 | 02/07 |
Chittenden Corporation Reports Increased Earnings Per Share, and Announces
New Share Repurchase Plan
Burlington, VT – Chittenden Corporation (NYSE:CHZ) Chairman, President and Chief Executive Officer, Paul A. Perrault, today announced higher earnings for the year ended December 31, 2006 of $85.5 million or $1.83 per diluted share, compared to $82.0 million or $1.74 per diluted share a year ago. For the fourth quarter of 2006, net income was $22.5 million or $0.48 per diluted share, compared to $21.8 million or $0.46 per diluted share earned in the fourth quarter of 2005.
In making the announcement, Perrault said, “I am pleased to report to shareholders that your Company’s discipline and strong strategic implementation continues to deliver solid results despite the challenging environment “. Chittenden also announced its quarterly dividend of $0.20 per share, which will be paid on February 9, 2007, to shareholders of record on January 26, 2007.
Perrault also announced that the Board of Directors approved a new share repurchase plan on January 17, 2007 for one million shares of the Corporation’s common stock. The repurchase of the common stock may be done in negotiated transactions or open market purchases over the next two years.
FOURTH QUARTER 2006 FINANCIAL HIGHLIGHTS
q | Commercial loans increased 7% from the end of 2005. |
q | Average deposits for 2006 increased 4% from 2005 with solid growth in CMA/money market deposits of over 4%. |
q | Net interest margin held steady for 2006 at 4.24% and the fourth quarter increased 6 basis points to 4.29%. |
q | Nonperforming assets declined 22% from the third quarter of 2006. |
q | The efficiency ratio improved to 54.6% for the fourth quarter of 2006. |
q | The Company repurchased 762,500 common shares in the fourth quarter and the tangible capital ratio remained over 7.00% at year end. |
ASSETS
The Company’s securities portfolio declined from both the prior year end and on a linked quarter basis to $1.1 billion. The decrease in securities was primarily utilized to fund loan growth and reduce borrowings. Total loans increased by $210 million from the end of last year to $4.7 billion at December 31, 2006. The Company experienced solid loan growth in 2006 throughout all of its markets with particularly strong increases in its multifamily real estate, commercial real estate and construction portfolios.
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
LIABILITIES
Total deposits decreased $20 million from September 30, 2006 reflecting the start of the normal seasonal decline in deposits, which is primarily driven by the operating cycles of the Company’s municipal and commercial customers. Borrowings at December 31, 2006, were $210 million, a decrease of $17 million from the end of last year due to lower FHLB advances.
NET INTEREST INCOME
Tax-equivalent net interest income for the fourth quarter of 2006 was $64.0 million, compared to $63.7 million for the same quarter of 2005 and $63.5 million for the third quarter of 2006. The increase in net interest income from the same period a year ago was due to higher average earning assets, which was partially offset by a slightly lower net interest margin. The Company’s net interest margin for the fourth quarter was 4.29%, an increase of 6 basis points from the third quarter of 2006 and a decline of 1 basis point from the same period a year ago. The increase in net interest margin from the third quarter of 2006 was attributable to higher interest recoveries on former non-performing loans. The decline in the net interest margin from the fourth quarter of 2005 was due to an increase in funding costs, which was partially offset by an increase in the yield on interest earning assets. The increase in funding costs was driven by strong competition for both commercial and consumer deposits as well as increases in the federal funds rate in 2005 and 2006.
NONINTEREST INCOME
Noninterest income was $17.9 million for the fourth quarter of 2006, compared with $16.1 million for the third quarter and $17.4 million for the same period a year ago. The increase in noninterest income was primarily attributable to higher investment management and trust fees and other noninterest income, which was partially offset by lower gains on the sales of mortgage loans. The increase in other noninterest income from the fourth quarter of 2005 was due to $1.1 million received in relation to the Company’s interest in a mortgage insurance captive, which was partially offset by higher amortization on investments in low income housing limited partnerships.
NONINTEREST EXPENSE
Noninterest expense was $46.3 million for the fourth quarter of 2006, compared to $46.0 million for the same quarter of 2005. The increase from the fourth quarter a year ago is primarily a result of higher salary expense which related to increased share-based compensation costs and new branch openings in 2006. The Company recognized $785,000 of share-based compensation in the fourth quarter of 2006 as compared to $4,000 in the same quarter a year ago.
INCOME TAXES
The effective income tax rates for 2006 were 31.5% for the fourth quarter and 32.1% for the full year compared with 34.2% and 34.5%, respectively, for the same periods in 2005. The lower effective income tax rate was attributable to higher low-income housing and historic rehabilitation tax credits.
CREDIT QUALITY
The provision for credit losses was $2.0 million for the fourth quarter of 2006 compared to $1.4 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. Net charge-offs as a percentage of average loans were 4 basis points for the fourth quarter of
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
2006, up from 2 basis points for the same quarter a year ago. The increase in net charge-offs primarily relates to one commercial finance loan that was placed on non-accrual status in the first quarter of 2006. The allowance for credit losses as a percentage of total loans excluding municipal loans was 1.39% at December 31, 2006 compared to 1.43% for the fourth quarter of 2005.
EARNINGS CONFERENCE CALL
Kirk W. Walters, Executive Vice President and Chief Financial Officer of Chittenden Corporation, will host a conference call on January 18, 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 800-561-2718, passcode 37851780. International dial-in number is 617-614-3525. 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 25, 2007 by calling 888-286-8010 (International dial number is 617-801-6888), passcode 51014444. 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, Massachusetts and Connecticut, 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, Chittenden Services Group, Chittenden Mortgage Services, and it owns Chittenden Insurance Group, LLC, and Chittenden Securities, LLC. |
CHITTENDEN CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | 12/31/05 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 199,358 | $ | 145,393 | $ | 172,567 | $ | 142,887 | $ | 180,707 | ||||||||||
Securities Available For Sale | 1,137,352 | 1,231,369 | 1,288,390 | 1,344,016 | 1,383,909 | |||||||||||||||
FRB and FHLB Stock | 13,403 | 16,124 | 18,577 | 19,352 | 19,352 | |||||||||||||||
Loans Held For Sale | 17,354 | 21,646 | 18,882 | 19,319 | 19,737 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial & Industrial (C&I) | 853,839 | 854,475 | 851,692 | 836,986 | 848,420 | |||||||||||||||
Municipal | 141,522 | 144,152 | 90,206 | 172,443 | 160,357 | |||||||||||||||
Multi-Family | 216,049 | 213,153 | 205,443 | 195,809 | 196,590 | |||||||||||||||
Commercial Real Estate | 1,942,685 | 1,933,279 | 1,884,716 | 1,827,096 | 1,778,202 | |||||||||||||||
Construction | 232,000 | 211,187 | 218,123 | 212,824 | 192,165 | |||||||||||||||
Residential Real Estate | 751,450 | 749,106 | 750,031 | 731,798 | 737,462 | |||||||||||||||
Home Equity Credit Lines | 322,124 | 325,814 | 319,606 | 316,355 | 316,465 | |||||||||||||||
Consumer | 237,541 | 246,394 | 254,839 | 254,719 | 257,829 | |||||||||||||||
Total Loans | 4,697,210 | 4,677,560 | 4,574,656 | 4,548,030 | 4,487,490 | |||||||||||||||
Less: Allowance for Loan Losses | (62,160 | ) | (62,153 | ) | (62,070 | ) | (61,464 | ) | (60,822 | ) | ||||||||||
Net Loans | 4,635,050 | 4,615,407 | 4,512,586 | 4,486,566 | 4,426,668 | |||||||||||||||
Accrued Interest Receivable | 33,123 | 32,393 | 31,138 | 32,772 | 32,621 | |||||||||||||||
Other Assets | 83,938 | 89,759 | 102,079 | 93,673 | 93,377 | |||||||||||||||
Premises and Equipment | 67,036 | 67,952 | 69,503 | 68,568 | 69,731 | |||||||||||||||
Mortgage Servicing Rights | 14,155 | 14,347 | 14,529 | 13,966 | 13,741 | |||||||||||||||
Identified Intangibles | 14,996 | 15,661 | 16,326 | 16,991 | 17,655 | |||||||||||||||
Goodwill | 216,038 | 216,038 | 216,038 | 216,038 | 216,038 | |||||||||||||||
Total Assets | $ | 6,431,803 | $ | 6,466,089 | $ | 6,460,615 | $ | 6,454,148 | $ | 6,473,536 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demands | $ | 966,758 | $ | 971,378 | $ | 965,794 | $ | 929,718 | $ | 973,752 | ||||||||||
Savings | 468,294 | 481,380 | 474,883 | 489,944 | 489,734 | |||||||||||||||
NOWs | 861,435 | 866,134 | 895,817 | 906,934 | 861,000 | |||||||||||||||
CMAs / Money Markets | 1,655,349 | 1,658,319 | 1,441,573 | 1,584,777 | 1,749,878 | |||||||||||||||
Certificates of Deposit Less than $100,000 | 848,814 | 858,834 | 878,181 | 853,645 | 814,289 | |||||||||||||||
Certificates of Deposit $100,000 and Over | 678,243 | 663,086 | 661,322 | 618,319 | 625,682 | |||||||||||||||
Total Deposits | 5,478,893 | 5,499,131 | 5,317,570 | 5,383,337 | 5,514,335 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 73,611 | 87,112 | 138,773 | 53,238 | 56,315 | |||||||||||||||
Other Borrowings | 136,409 | 135,975 | 285,497 | 288,482 | 171,008 | |||||||||||||||
Accrued Expenses and Other Liabilities | 71,804 | 63,162 | 63,299 | 59,295 | 60,488 | |||||||||||||||
Total Liabilities | 5,760,717 | 5,785,380 | 5,805,139 | 5,784,352 | 5,802,146 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Common Stock | 50,235 | 50,235 | 50,235 | 50,235 | 50,220 | |||||||||||||||
Surplus | 276,034 | 274,834 | 273,723 | 272,696 | 276,278 | |||||||||||||||
Retained Earnings | 468,331 | 454,985 | 442,456 | 430,811 | 419,057 | |||||||||||||||
Treasury Stock, at cost | (105,666 | ) | (85,613 | ) | (85,678 | ) | (64,189 | ) | (60,801 | ) | ||||||||||
Accumulated Other Comprehensive Income | (24,008 | ) | (19,470 | ) | (30,924 | ) | (25,216 | ) | (18,968 | ) | ||||||||||
Directors’ Deferred Compensation to be Settled in Stock | 6,160 | 5,738 | 5,664 | 5,459 | 5,604 | |||||||||||||||
Total Stockholders’ Equity | 671,086 | 680,709 | 655,476 | 669,796 | 671,390 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,431,803 | $ | 6,466,089 | $ | 6,460,615 | $ | 6,454,148 | $ | 6,473,536 | ||||||||||
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 December 31, | For the Twelve Months Ended December 31, | |||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||
Interest Income: | ||||||||||||
Loans | $ | 84,752 | $ | 71,834 | $ | 319,307 | $ | 261,359 | ||||
Investments | 13,052 | 14,960 | 55,405 | 58,883 | ||||||||
Total Interest Income | 97,804 | 86,794 | 374,712 | 320,242 | ||||||||
Interest Expense: | ||||||||||||
Deposits | 30,905 | 20,904 | 108,553 | 63,926 | ||||||||
Borrowings | 3,670 | 2,857 | 17,157 | 12,003 | ||||||||
Total Interest Expense | 34,575 | 23,761 | 125,710 | 75,929 | ||||||||
Net Interest Income | 63,229 | 63,033 | 249,002 | 244,313 | ||||||||
Provision for Credit Losses | 1,967 | 1,354 | 6,920 | 5,154 | ||||||||
Net Interest Income after Provision for Credit Losses | 61,262 | 61,679 | 242,082 | 239,159 | ||||||||
Noninterest Income: | ||||||||||||
Investment Management and Trust | 5,585 | 5,047 | 21,293 | 20,017 | ||||||||
Service Charges on Deposits | 4,164 | 3,926 | 16,728 | 16,113 | ||||||||
Mortgage Servicing | 404 | 607 | 2,106 | 1,829 | ||||||||
Gains on Sales of Loans | 1,397 | 2,301 | 6,294 | 9,021 | ||||||||
Credit Card Income | 1,270 | 1,193 | 5,107 | 4,536 | ||||||||
Insurance Commissions | 1,055 | 1,134 | 5,805 | 6,365 | ||||||||
Other | 4,062 | 3,243 | 12,856 | 12,083 | ||||||||
Total Noninterest Income | 17,937 | 17,451 | 70,189 | 69,964 | ||||||||
Noninterest Expense: | ||||||||||||
Salaries | 23,311 | 21,659 | 93,217 | 89,496 | ||||||||
Employee Benefits | 5,168 | 5,717 | 22,155 | 22,218 | ||||||||
Net Occupancy | 5,789 | 5,900 | 23,424 | 24,094 | ||||||||
Data Processing | 1,092 | 951 | 4,079 | 3,457 | ||||||||
Amortization of Intangibles | 665 | 665 | 2,659 | 2,768 | ||||||||
Other | 10,288 | 11,097 | 40,833 | 41,808 | ||||||||
Total Noninterest Expense | 46,313 | 45,989 | 186,367 | 183,841 | ||||||||
Income Before Income Taxes | 32,886 | 33,141 | 125,904 | 125,282 | ||||||||
Income Tax Expense | 10,350 | 11,328 | 40,436 | 43,243 | ||||||||
Net Income | $ | 22,536 | $ | 21,813 | $ | 85,468 | $ | 82,039 | ||||
Basic Earnings Per Share | $ | 0.50 | $ | 0.46 | $ | 1.85 | $ | 1.76 | ||||
Diluted Earnings Per Share | 0.48 | 0.46 | 1.83 | 1.74 | ||||||||
Dividends Per Share | 0.20 | 0.18 | 0.78 | 0.72 |
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)
12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | 12/31/05 | ||||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||
Return on Average Tangible Equity1 | 20.25 | % | 20.20 | % | 19.87 | % | 18.92 | % | 20.47 | % | ||||||||||
Return on Average Equity | 13.20 | % | 13.00 | % | 12.75 | % | 12.21 | % | 13.11 | % | ||||||||||
Return on Average Tangible Assets1 | 1.47 | % | 1.41 | % | 1.38 | % | 1.35 | % | 1.43 | % | ||||||||||
Return on Average Assets | 1.39 | % | 1.33 | % | 1.30 | % | 1.27 | % | 1.35 | % | ||||||||||
Net Yield on Earning Assets | 4.29 | % | 4.23 | % | 4.22 | % | 4.20 | % | 4.30 | % | ||||||||||
Efficiency Ratio1 | 54.56 | % | 55.91 | % | 56.87 | % | 56.61 | % | 54.37 | % | ||||||||||
Tangible Capital Ratio | 7.10 | % | 7.20 | % | 6.79 | % | 7.02 | % | 7.01 | % | ||||||||||
Leverage Ratio | 9.24 | % | 9.24 | % | 9.04 | % | 9.38 | % | 9.21 | % | ||||||||||
Tier 1 Capital Ratio | 11.56 | % | 11.59 | % | 11.29 | % | 11.61 | % | 11.23 | % | ||||||||||
Total Capital Ratio | 12.78 | % | 12.80 | % | 12.49 | % | 12.82 | % | 12.40 | % | ||||||||||
Common Share Data | ||||||||||||||||||||
Common Shares Outstanding | 45,360 | 45,994 | 45,978 | 46,748 | 46,829 | |||||||||||||||
Weighted Average Shares Outstanding | 45,745 | 45,982 | 46,423 | 46,804 | 46,690 | |||||||||||||||
Weighted Average and Common Equivalent Shares Outstanding | 46,388 | 46,504 | 46,903 | 47,401 | 47,291 | |||||||||||||||
Book Value per Share | $ | 14.79 | $ | 14.80 | $ | 14.26 | $ | 14.33 | $ | 14.34 | ||||||||||
Tangible Book Value per Share1 | $ | 9.70 | $ | 9.76 | $ | 9.20 | $ | 9.34 | $ | 9.35 | ||||||||||
Credit Quality Data | ||||||||||||||||||||
Nonperforming Assets (NPAs) | $ | 20,358 | $ | 26,089 | $ | 24,727 | $ | 24,844 | $ | 16,194 | ||||||||||
90 days Past Due and Still Accruing | 3,352 | 3,196 | 2,283 | 3,323 | 3,038 | |||||||||||||||
NPAs to Loans Plus OREO | 0.43 | % | 0.56 | % | 0.54 | % | 0.55 | % | 0.36 | % | ||||||||||
Allowance for Loan Losses | $ | 62,160 | $ | 62,153 | $ | 62,070 | $ | 61,464 | $ | 60,822 | ||||||||||
Reserve for Unfunded Commitments2 | 1,200 | 1,200 | 1,200 | 1,200 | 1,200 | |||||||||||||||
Allowance for Credit Losses (ACL) | $ | 63,360 | $ | 63,353 | $ | 63,270 | $ | 62,664 | $ | 62,022 | ||||||||||
ACL to Loans | 1.35 | % | 1.35 | % | 1.38 | % | 1.38 | % | 1.38 | % | ||||||||||
ACL to Loans (excluding Municipals) | 1.39 | % | 1.40 | % | 1.41 | % | 1.43 | % | 1.43 | % | ||||||||||
ACL to Nonperforming Loans | 315.32 | % | 248.90 | % | 260.13 | % | 257.81 | % | 392.06 | % | ||||||||||
Charge-offs | $ | 3,070 | $ | 2,093 | $ | 1,871 | $ | 1,753 | $ | 1,840 | ||||||||||
Recoveries | 1,110 | 506 | 728 | 862 | 1,040 | |||||||||||||||
Net Charge-offs | $ | 1,960 | $ | 1,587 | $ | 1,143 | $ | 891 | $ | 800 | ||||||||||
Net Charge-offs to Average Loans | 0.04 | % | 0.03 | % | 0.03 | % | 0.02 | % | 0.02 | % | ||||||||||
QTD Average Balance Sheet Data | ||||||||||||||||||||
Securities | $ | 1,201,734 | $ | 1,269,907 | $ | 1,333,444 | $ | 1,391,413 | $ | 1,378,688 | ||||||||||
Loans, Net | 4,632,538 | 4,626,194 | 4,552,727 | 4,455,403 | 4,408,205 | |||||||||||||||
Earning Assets | 5,926,319 | 5,959,599 | 5,948,463 | 5,915,366 | 5,895,121 | |||||||||||||||
Total Assets | 6,426,533 | 6,482,127 | 6,462,457 | 6,430,410 | 6,418,971 | |||||||||||||||
Deposits | 5,434,889 | 5,442,894 | 5,372,367 | 5,377,674 | 5,454,388 | |||||||||||||||
Borrowings | 249,344 | 312,430 | 367,521 | 321,073 | 246,660 | |||||||||||||||
Stockholders’ Equity | 677,244 | 662,964 | 661,020 | 671,058 | 660,353 |
Prior year amounts reflect the modified retrospective application of SFAS 123-R “Accounting for Stock-Based Compensation.”
1. Reconciliation of non-GAAP measurements
12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | 12/30/05 | |||||||||||
Net Income (GAAP) | $ | 22,536 | $ | 21,725 | $ | 21,009 | $ | 20,198 | $ | 21,813 | |||||
Amortization of Core Deposit Intangible, net of tax | 432 | 432 | 431 | 432 | 432 | ||||||||||
Tangible Net Income (A) | $ | 22,968 | 22,157 | $ | 21,440 | $ | 20,630 | $ | 22,245 | ||||||
Average Stockholders’ Equity (GAAP) | $ | 677,244 | $ | 662,964 | $ | 661,020 | $ | 671,058 | $ | 660,353 | |||||
Average Core Deposit Intangible (CDI) | 15,328 | 15,996 | 16,659 | 17,323 | 17,992 | ||||||||||
Average Deferred Tax on CDI | (4,168) | (4,345) | (4,435) | (4,610) | (4,785) | ||||||||||
Average Goodwill | 216,038 | 216,038 | 216,038 | 216,038 | 216,103 | ||||||||||
Average Tangible Equity (B) | $ | 450,046 | $ | 435,275 | $ | 432,758 | $ | 442,307 | $ | 431,043 | |||||
Return on Average Tangible Equity (A) / (B) | 20.25% | 20.20% | 19.87% | 18.92% | 20.47% | ||||||||||
Average Assets (GAAP) | $ | 6,426,533 | $ | 6,482,127 | $ | 6,462,457 | $ | 6,430,410 | $ | 6,418,971 | |||||
Average CDI | 15,328 | 15,996 | 16,659 | 17,323 | 17,992 | ||||||||||
Average Deferred Tax on CDI | (4,168) | (4,345) | (4,435) | (4,610) | (4,785) | ||||||||||
Average Goodwill | 216,038 | 216,038 | 216,038 | 216,038 | 216,103 | ||||||||||
Average Tangible Assets (C) | $ | 6,199,335 | $ | 6,254,438 | $ | 6,234,195 | $ | 6,201,659 | $ | 6,189,661 | |||||
Return on Average Tangible Assets (A) / (C) | 1.47% | 1.41% | 1.38% | 1.35% | 1.43% |
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. ($46,313-$98-$665-$852) / ($64,001+$17,937-10) = 54.56%.
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. ($671,086-$216,038-$14,996) / 45,360= $9.70.
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.