Exhibit 99(a)
 | News Release |
5 Sarnowski Drive, Glenville, New York, 12302 | |
| (518) 377-3311 Fax: (518) 381-3668 |
| Subsidiary: Trustco Bank | NASDAQ -- TRST |
Contact: | Kevin T. Timmons Vice President/Treasurer (518) 381-3607 |
TrustCo Announces Full Year and Fourth Quarter Earnings;
2014 Net Income Up 11% Over 2013
Executive Snapshot:
| · | Continued strong financial results: |
| o | Full year 2014 compared to the same period in 2013: |
| § | Net income up 11.0% |
| § | Diluted EPS up 10.4% |
| § | Return on average assets (ROA) rose 7 basis points to 0.97% |
| § | Return on average equity (ROE) rose 39 basis points to 11.54% |
| § | Improvement in the efficiency ratio from 52.78% in 2013 to 52.60% in 2014 |
| · | Asset quality improvement: |
| o | Virtually every measure of asset quality improved for both the full year 2014 and for the fourth quarter of 2014 |
| o | Nonperforming assets (NPAs) fell $3.1 million during the quarter and $11.7 million during the year |
| o | NPAs to total assets improved from 1.15% to 0.87% over last year |
| o | Quarterly net chargeoffs at lowest level since the fourth quarter of 2008 |
| · | Continued expansion of customer base: |
| o | Focus on capitalizing on opportunities presented by expanded branch network |
| o | Deposits per branch grew $715 thousand from December 31, 2013 to December 31, 2014 on a same store basis |
| o | Average core deposits grew $84 million for the full year 2014 compared to 2013 |
| · | Loan portfolio reaches all-time high: |
| o | Average loans were up $242 million for full year 2014 compared to 2013 |
| o | At $3.16 billion at December 30, 2014, loans reached an all-time historic high |
Page | 4
FOR IMMEDIATE RELEASE:
TrustCo Announces Full Year and Fourth Quarter Earnings;
2014 Net Income Up 11% Over 2013
Glenville, New York – January 21, 2015
TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that 2014 net income rose 11% to $44.2 million compared to $39.8 million for 2013. For the fourth quarter of 2014 net income was $10.7 million compared to $10.6 million for the fourth quarter of 2013.
Robert J. McCormick, President and Chief Executive Officer noted, “Our results for 2014 represented another solid year of profit growth coupled with continued growth of core customer relationships which ultimately position our business well for the future. We continued to add profitable customer relationships on both the loan and deposit sides of the Bank despite the difficult interest rate environment. Our highly liquid balance sheet continues to allow us to fund our loan growth without having to overpay for deposits. We look forward to 2015 with optimism. We will continue taking advantage of opportunities as they are presented.”
TrustCo saw continued strong loan growth in the fourth quarter of 2014. The gains continue to be primarily funded by expansion of retail deposits as well as proceeds from cash flow from the lower yielding investment securities portfolios. The shift toward loans helped offset part of the impact from continued comparatively low yields on cash and investment securities and contributed to an improvement in net interest margin for the full year to 3.16% in 2014 from 3.14% in 2013. TrustCo’s strong liquidity position continues to allow the Company to take advantage of opportunities when interest rate conditions change. The increase in margin enabled the Company to achieve bottom line objectives without having to deploy liquidity into the current low interest rate investment environment.
Mr. McCormick also noted, “We are encouraged by the continued economic improvements where we operate, particularly in Florida, and believe we are well positioned to capitalize on these changes. We are pleased with the significant improvement in our asset quality during both the fourth quarter and for the full year 2014. Our long-term focus on traditional lending criteria and conservative balance sheet management has enabled us to maintain strong liquidity and capital and report continued profit improvements. As a result, we have been able to focus on conducting business, which has significantly enhanced our reputation and put us in a position to take advantage of changes in market and competitive conditions.”
Page | 5
For the full year 2014, return on average assets and return on average equity were 0.97% and 11.54%, respectively, compared to 0.90% and 11.15% for the full year 2013. Diluted earnings per share were $0.466 for 2014, up 10.4% from $0.422 in 2013.
On a year-over-year basis, average loans were up $254.6 million or 8.9% in the fourth quarter of 2014, over the same period in 2013. Average deposits were up $93.9 million for the fourth quarter of 2014 over the same period a year earlier. Most of the gain in deposits came from core deposit accounts although some customers also continued to move funds into certificates. Average core deposits increased $69.5 million from the fourth quarter of 2013 to the fourth quarter of 2014. Core deposits typically represent longer term customer relationships and are generally lower cost than time deposits. Mr. McCormick noted that, “The year-over-year growth of our loans and core deposit base reflect the long term strategic focus of the Company.
“While some banks have backed away from branches, a customer friendly branch franchise continues to be the key to our long term plans. We opened one new office during the fourth quarter, in Sarasota, Florida. 2015 will represent the 12th year since we began our branch expansion program. During that time we have made significant progress expanding loans and deposits throughout our entire branch network. We expect that trend to continue as the new branches continue to mature. At December 31, 2014, our average branch size was $28.0 million. On a same store basis, our average branch size grew by $715 thousand from December 31, 2013 to December 31, 2014. We have always designed our branches to be smaller and more cost effective than those built by many of our competitors. We use open floor plans that help maximize the value of our branches. We remain mindful that fully achieving our goals for the newer branches will take time and continued work. We believe success in growing customer relationships provides the basic building blocks that help drive profit growth for the coming years.”
Asset quality and the allowance for loan losses coverage of nonperforming loans (NPLs) improved from December 31, 2013 to December 31, 2014. NPLs declined to $34.0 million at December 31, 2014, compared to $43.4 million at December 31, 2013 and NPLs were equal to 1.08% of total loans at December 31, 2014, compared to 1.49% a year earlier. The coverage ratio, or allowance for loan losses to NPLs, was 136.2% at December 31, 2014, compared to 110.0% at December 31, 2013. Nonperforming assets (NPAs) declined to $40.5 million from $52.1 million over the same period. Overall, virtually every asset quality indicator improved during the fourth quarter of 2014 relative to the fourth quarter of 2013. The ratio of loan loss allowance to total loans was 1.47% as of December 31, 2014, compared to 1.64% at December 31, 2013 and reflects both the improvement in asset quality as well as overall loan growth. The allowance for loan losses ended 2014 at $46.3 million compared to $47.7 million at the end of 2013.
The net interest margin for the fourth quarter of 2014 was 3.17%, compared to 3.15% in the fourth quarter of 2013, as previously noted. For the full year 2014, the margin was 3.16% compared to 3.14% for 2013.
At December 31, 2014 the tangible equity ratio was 8.46% compared to 7.99% at December 31, 2013. Tangible book value per share ended the fourth quarter at $4.14 compared to $3.82 a year earlier.
Page | 6
TrustCo Bank Corp NY is a $4.6 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 144 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at December 31, 2014.
In addition, the Bank’s Financial Services Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.
A conference call to discuss fourth quarter 2014 results will be held at 9:00 a.m. Eastern Time on January 22, 2015. Those wishing to participate in the call may dial toll-free 1-888-339-0764. International callers must dial 1-412-902-4195. Please ask to be joined into the TrustCo Bank Corp NY / TRST call. A replay of the call will be available for thirty days by dialing 1-877-344-7529 (1-412-317-0088 for international callers), Conference Number 10058636. The call will also be audio webcast at: https://services.choruscall.com/links/trst150122.html, and will be available for one year.
Safe Harbor Statement
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2015 and for the growth of loans and deposits throughout our branch network and our ability to capitalize on economic changes in the areas in which we operate. Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: our ability to continue to originate a significant volume of one-to-four family mortgage loans in our market areas; our ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income; the future earnings and capital levels of Trustco Bank and the continued ability of Trustco Bank under regulatory rules to distribute capital to TrustCo, which could affect our ability to pay dividends; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; the effect of changes in financial services laws and regulations and the impact of other governmental initiatives affecting the financial services industry; results of examinations of Trustco Bank and TrustCo by our respective regulators; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board, inflation, interest rates, market and monetary fluctuations; the perceived overall value of our products and services by users, including in comparison to competitors’ products and services and the willingness of current and prospective customers to substitute competitors’ products and services for our products and services; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or PCAOB; changes in local market areas and general business and economic trends, as well as changes in consumer spending and saving habits; our success at managing the risks involved in the foregoing and managing our business; and other risks and uncertainties under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2013, as amended, and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings.
Page | 7
TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
| (dollars in thousands, except per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 12/31/14 | 09/30/14 | 12/31/13 | ||||||||||
| Summary of operations | ||||||||||||
| Net interest income (TE) | $ | 35,693 | 35,676 | 34,577 | ||||||||
| Provision for loan losses | 1,000 | 1,100 | 1,500 | |||||||||
| Net securities transactions | 335 | 376 | 188 | |||||||||
| Noninterest income, excluding net securities transactions | 4,417 | 4,514 | 4,660 | |||||||||
| Noninterest expense | 22,240 | 22,192 | 20,891 | |||||||||
| Net income | 10,660 | 10,714 | 10,629 | |||||||||
| Per common share | ||||||||||||
| Net income per share: | ||||||||||||
| - Basic | $ | 0.113 | 0.113 | 0.113 | ||||||||
| - Diluted | 0.112 | 0.113 | 0.112 | |||||||||
| Cash dividends | 0.066 | 0.066 | 0.066 | |||||||||
| Tangible Book value at period end | 4.14 | 4.10 | 3.82 | |||||||||
| Market price at period end | 7.26 | 6.44 | 7.18 | |||||||||
| At period end | ||||||||||||
| Full time equivalent employees | 737 | 733 | 708 | |||||||||
| Full service banking offices | 144 | 143 | 139 | |||||||||
| Performance ratios | ||||||||||||
| Return on average assets | 0.92 | % | 0.92 | 0.94 | ||||||||
| Return on average equity | 10.70 | 10.96 | 11.78 | |||||||||
| Efficiency (1) | 53.35 | 52.73 | 52.15 | |||||||||
| Net interest spread (TE) | 3.11 | 3.11 | 3.10 | |||||||||
| Net interest margin (TE) | 3.17 | 3.16 | 3.15 | |||||||||
| Dividend payout ratio | 58.55 | 58.05 | 58.44 | |||||||||
| Capital ratio at period end | ||||||||||||
| Consolidated tangible equity to tangible assets (2) | 8.46 | 8.49 | 7.99 | |||||||||
| Asset quality analysis at period end | ||||||||||||
| Nonperforming loans to total loans | 1.08 | 1.20 | 1.49 | |||||||||
| Nonperforming assets to total assets | 0.87 | 0.95 | 1.15 | |||||||||
| Allowance for loan losses to total loans | 1.47 | 1.51 | 1.64 | |||||||||
| Coverage ratio (3) | 1.4 | x | 1.3 | 1.1 | ||||||||
| (1) | Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions and the net gain on sale of building). |
| (2) | The tangible equity ratio excludes $553 of intangibles from both equity and assets. |
| (3) | Calculated as allowance for loan losses divided by total nonperforming loans. |
TE = Taxable equivalent.
Page | 8
FINANCIAL HIGHLIGHTS, Continued
| (dollars in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Years Ended | ||||||||
| 12/31/14 | 12/31/13 | |||||||
| Summary of operations | ||||||||
| Net interest income (TE) | $ | 141,583 | 136,094 | |||||
| Provision for loan losses | 5,100 | 7,000 | ||||||
| Net securities transactions | 717 | 1,622 | ||||||
| Noninterest income, excluding net securities transactions | 19,189 | 18,148 | ||||||
| Noninterest expense | 84,670 | 85,005 | ||||||
| Net income | 44,193 | 39,812 | ||||||
| Per common share | ||||||||
| Net income per share: | ||||||||
| - Basic | $ | 0.467 | 0.422 | |||||
| - Diluted | 0.466 | 0.422 | ||||||
| Cash dividends | 0.263 | 0.263 | ||||||
| Tangible Book value at period end | 4.14 | 3.82 | ||||||
| Market price at period end | 7.26 | 7.18 | ||||||
| Performance ratios | ||||||||
| Return on average assets | 0.97 | % | 0.90 | |||||
| Return on average equity | 11.54 | 11.15 | ||||||
| Efficiency (1) | 52.60 | 52.78 | ||||||
| Net interest spread (TE) | 3.10 | 3.08 | ||||||
| Net interest margin (TE) | 3.16 | 3.14 | ||||||
| Dividend payout ratio | 56.30 | 62.19 | ||||||
| (1) | Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions). |
TE = Taxable equivalent.
Page | 9
CONSOLIDATED STATEMENTS OF INCOME
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Interest and fees on loans | $ | 35,051 | 34,421 | 33,614 | 32,874 | 32,658 | ||||||||||||||
| Interest and dividends on securities available for sale: | ||||||||||||||||||||
| U. S. government sponsored enterprises | 233 | 297 | 381 | 506 | 586 | |||||||||||||||
| State and political subdivisions | 29 | 38 | 44 | 68 | 96 | |||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-residential | 2,733 | 3,040 | 3,299 | 3,078 | 3,027 | |||||||||||||||
| Corporate bonds | 2 | 2 | 2 | 59 | 138 | |||||||||||||||
| Small Business Administration-guaranteed participation securities | 524 | 535 | 539 | 556 | 562 | |||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-commercial | 37 | 38 | 38 | 38 | 38 | |||||||||||||||
| Other securities | 4 | 4 | 4 | 4 | 4 | |||||||||||||||
| Total interest and dividends on securities available for sale | 3,562 | 3,954 | 4,307 | 4,309 | 4,451 | |||||||||||||||
| Interest on held to maturity securities: | ||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-residential | 512 | 545 | 577 | 625 | 649 | |||||||||||||||
| Corporate bonds | 154 | 153 | 154 | 154 | 153 | |||||||||||||||
| Total interest on held to maturity securities | 666 | 698 | 731 | 779 | 802 | |||||||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 123 | 127 | 128 | 133 | 129 | |||||||||||||||
| Interest on federal funds sold and other short-term investments | 363 | 374 | 376 | 351 | 324 | |||||||||||||||
| Total interest income | 39,765 | 39,574 | 39,156 | 38,446 | 38,364 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Interest on deposits: | ||||||||||||||||||||
| Interest-bearing checking | 98 | 94 | 89 | 84 | 83 | |||||||||||||||
| Savings | 663 | 644 | 592 | 763 | 790 | |||||||||||||||
| Money market deposit accounts | 634 | 648 | 618 | 599 | 611 | |||||||||||||||
| Time deposits | 2,366 | 2,213 | 2,035 | 1,951 | 1,982 | |||||||||||||||
| Interest on short-term borrowings | 335 | 327 | 342 | 393 | 382 | |||||||||||||||
| Total interest expense | 4,096 | 3,926 | 3,676 | 3,790 | 3,848 | |||||||||||||||
| Net interest income | 35,669 | 35,648 | 35,480 | 34,656 | 34,516 | |||||||||||||||
| Provision for loan losses | 1,000 | 1,100 | 1,500 | 1,500 | 1,500 | |||||||||||||||
| Net interest income after provision for loan losses | 34,669 | 34,548 | 33,980 | 33,156 | 33,016 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Trustco Financial Services income | 1,451 | 1,471 | 1,405 | 1,510 | 1,276 | |||||||||||||||
| Fees for services to customers | 2,753 | 2,838 | 2,732 | 2,521 | 2,917 | |||||||||||||||
| Net gain on securities transactions | 335 | 376 | - | 6 | 188 | |||||||||||||||
| Other | 213 | 205 | 368 | 1,722 | 467 | |||||||||||||||
| Total noninterest income | 4,752 | 4,890 | 4,505 | 5,759 | 4,848 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 9,003 | 8,272 | 8,012 | 7,592 | 8,664 | |||||||||||||||
| Net occupancy expense | 3,869 | 4,013 | 4,110 | 4,259 | 4,226 | |||||||||||||||
| Equipment expense | 1,919 | 1,725 | 1,823 | 1,752 | 1,514 | |||||||||||||||
| Professional services | 1,536 | 1,547 | 1,438 | 1,286 | 1,409 | |||||||||||||||
| Outsourced services | 1,225 | 1,375 | 1,425 | 1,325 | 1,075 | |||||||||||||||
| Advertising expense | 602 | 629 | 657 | 599 | 835 | |||||||||||||||
| FDIC and other insurance | 949 | 1,054 | 1,000 | 904 | 952 | |||||||||||||||
| Other real estate expense (income), net | 841 | 1,001 | (1,688 | ) | 855 | 430 | ||||||||||||||
| Other | 2,296 | 2,576 | 2,660 | 2,229 | 1,786 | |||||||||||||||
| Total noninterest expenses | 22,240 | 22,192 | 19,437 | 20,801 | 20,891 | |||||||||||||||
| Income before taxes | 17,181 | 17,246 | 19,048 | 18,114 | 16,973 | |||||||||||||||
| Income taxes | 6,521 | 6,532 | 7,240 | 7,103 | 6,344 | |||||||||||||||
| Net income | $ | 10,660 | 10,714 | 11,808 | 11,011 | 10,629 | ||||||||||||||
| Net income per Common Share: | ||||||||||||||||||||
| - Basic | $ | 0.113 | 0.113 | 0.125 | 0.116 | 0.113 | ||||||||||||||
| - Diluted | 0.112 | 0.113 | 0.125 | 0.116 | 0.112 | |||||||||||||||
| Average basic shares (thousands) | 94,681 | 94,628 | 94,559 | 94,452 | 94,347 | |||||||||||||||
| Average diluted shares (thousands) | 94,813 | 94,752 | 94,675 | 94,581 | 94,472 | |||||||||||||||
| Note: Taxable equivalent net interest income | $ | 35,693 | 35,676 | 35,513 | 34,701 | 34,577 | ||||||||||||||
Page | 10
CONSOLIDATED STATEMENTS OF INCOME
| (dollars in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| Years Ended | ||||||||
| 12/31/2014 | 12/31/2013 | |||||||
| Interest and dividend income: | ||||||||
| Interest and fees on loans | $ | 135,960 | 127,944 | |||||
| Interest and dividends on securities available for sale: | ||||||||
| U. S. government sponsored enterprises | 1,417 | 2,600 | ||||||
| State and political subdivisions | 179 | 562 | ||||||
| Mortgage-backed securities and collateralized mortgage obligations-residential | 12,150 | 11,385 | ||||||
| Corporate bonds | 65 | 812 | ||||||
| Small Business Administration-guaranteed participation securities | 2,154 | 2,180 | ||||||
| Mortgage-backed securities and collateralized mortgage obligations-commercial | 151 | 144 | ||||||
| Other securities | 16 | 17 | ||||||
| Total interest and dividends on securities available for sale | 16,132 | 17,700 | ||||||
| Interest on held to maturity securities: | ||||||||
| Mortgage-backed securities-residential | 2,259 | 2,840 | ||||||
| Corporate bonds | 615 | 833 | ||||||
| Total interest on held to maturity securities | 2,874 | 3,673 | ||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 511 | 490 | ||||||
| Interest on federal funds sold and other short-term investments | 1,464 | 1,240 | ||||||
| Total interest income | 156,941 | 151,047 | ||||||
| Interest expense: | ||||||||
| Interest on deposits: | ||||||||
| Interest-bearing checking | 365 | 329 | ||||||
| Savings | 2,662 | 3,333 | ||||||
| Money market deposit accounts | 2,499 | 2,516 | ||||||
| Time deposits | 8,565 | 7,622 | ||||||
| Interest on short-term borrowings | 1,397 | 1,483 | ||||||
| Total interest expense | 15,488 | 15,283 | ||||||
| Net interest income | 141,453 | 135,764 | ||||||
| Provision for loan losses | 5,100 | 7,000 | ||||||
| Net interest income after provision for loan losses | 136,353 | 128,764 | ||||||
| Noninterest income: | ||||||||
| Trust department income | 5,837 | 5,301 | ||||||
| Fees for services to customers | 10,844 | 11,675 | ||||||
| Net gain on securities transactions | 717 | 1,622 | ||||||
| Other | 2,508 | 1,172 | ||||||
| Total noninterest income | 19,906 | 19,770 | ||||||
| Noninterest expenses: | ||||||||
| Salaries and employee benefits | 32,879 | 32,424 | ||||||
| Net occupancy expense | 16,251 | 16,100 | ||||||
| Equipment expense | 7,219 | 6,381 | ||||||
| Professional services | 5,807 | 5,649 | ||||||
| Outsourced services | 5,350 | 5,125 | ||||||
| Advertising expense | 2,487 | 2,827 | ||||||
| FDIC and other insurance | 3,907 | 3,975 | ||||||
| Other real estate expense, net | 1,009 | 3,598 | ||||||
| Other | 9,761 | 8,926 | ||||||
| Total noninterest expenses | 84,670 | 85,005 | ||||||
| Income before taxes | 71,589 | 63,529 | ||||||
| Income taxes | 27,396 | 23,717 | ||||||
| Net income | $ | 44,193 | 39,812 | |||||
| Net income per Common Share: | ||||||||
| - Basic | $ | 0.467 | 0.422 | |||||
| - Diluted | 0.466 | 0.422 | ||||||
| Average basic shares (thousands) | 94,628 | 94,160 | ||||||
| Average diluted shares (thousands) | 94,753 | 94,206 | ||||||
| Note: Taxable equivalent net interest income | $ | 141,583 | 136,094 | |||||
Page | 11
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
| 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | ||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Cash and due from banks | $ | 43,505 | 43,724 | 48,034 | 46,127 | 46,453 | ||||||||||||||
| Federal funds sold and other short term investments | 627,943 | 586,931 | 573,514 | 687,003 | 536,591 | |||||||||||||||
| Total cash and cash equivalents | 671,448 | 630,655 | 621,548 | 733,130 | 583,044 | |||||||||||||||
| Securities available for sale: | ||||||||||||||||||||
| U. S. government sponsored enterprises | 77,800 | 83,087 | 103,340 | 92,708 | 198,829 | |||||||||||||||
| States and political subdivisions | 2,271 | 2,769 | 3,921 | 4,968 | 7,758 | |||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-residential | 483,560 | 523,779 | 589,517 | 524,197 | 532,449 | |||||||||||||||
| Corporate bonds | 1,500 | 1,401 | 1,402 | 6,402 | 10,471 | |||||||||||||||
| Small Business Administration-guaranteed participation securities | 100,496 | 100,491 | 102,367 | 101,821 | 103,029 | |||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-commercial | 10,447 | 10,417 | 10,544 | 10,543 | 10,558 | |||||||||||||||
| Other securities | 685 | 679 | 679 | 653 | 660 | |||||||||||||||
| Total securities available for sale | 676,759 | 722,623 | 811,770 | 741,292 | 863,754 | |||||||||||||||
| Held to maturity securities: | ||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations-residential | 60,986 | 64,223 | 67,974 | 72,188 | 76,270 | |||||||||||||||
| Corporate bonds | 9,960 | 9,956 | 9,952 | 9,948 | 9,945 | |||||||||||||||
| Total held to maturity securities | 70,946 | 74,179 | 77,926 | 82,136 | 86,215 | |||||||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 9,228 | 9,228 | 10,951 | 10,500 | 10,500 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | 223,382 | 219,825 | 222,655 | 220,443 | 223,481 | |||||||||||||||
| Residential mortgage loans | 2,575,222 | 2,510,151 | 2,437,500 | 2,374,874 | 2,338,944 | |||||||||||||||
| Home equity line of credit | 352,134 | 346,496 | 339,897 | 339,971 | 340,489 | |||||||||||||||
| Installment loans | 7,594 | 6,557 | 6,098 | 5,714 | 5,895 | |||||||||||||||
| Loans, net of deferred fees and costs | 3,158,332 | 3,083,029 | 3,006,150 | 2,941,002 | 2,908,809 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Allowance for loan losses | 46,327 | 46,512 | 46,935 | 47,035 | 47,714 | |||||||||||||||
| Net loans | 3,112,005 | 3,036,517 | 2,959,215 | 2,893,967 | 2,861,095 | |||||||||||||||
| Bank premises and equipment, net | 38,565 | 37,455 | 36,658 | 35,267 | 34,414 | |||||||||||||||
| Other assets | 65,488 | 71,609 | 71,061 | 82,445 | 82,430 | |||||||||||||||
| Total assets | $ | 4,644,439 | 4,582,266 | 4,589,129 | 4,578,737 | 4,521,452 | ||||||||||||||
| LIABILITIES: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 331,425 | 327,527 | 324,277 | 327,779 | 318,456 | ||||||||||||||
| Interest-bearing checking | 682,210 | 646,862 | 643,473 | 628,752 | 611,127 | |||||||||||||||
| Savings accounts | 1,216,831 | 1,215,087 | 1,233,347 | 1,236,331 | 1,218,038 | |||||||||||||||
| Money market deposit accounts | 638,542 | 655,646 | 651,367 | 648,244 | 648,402 | |||||||||||||||
| Certificates of deposit (in denominations of $100,000 or more) | 466,260 | 449,832 | 436,785 | 432,168 | 419,301 | |||||||||||||||
| Other time accounts | 696,973 | 690,087 | 705,938 | 713,944 | 711,747 | |||||||||||||||
| Total deposits | 4,032,241 | 3,985,041 | 3,995,187 | 3,987,218 | 3,927,071 | |||||||||||||||
| Short-term borrowings | 189,116 | 179,957 | 181,516 | 195,411 | 204,162 | |||||||||||||||
| Accrued expenses and other liabilities | 29,638 | 27,781 | 27,409 | 24,329 | 28,406 | |||||||||||||||
| Total liabilities | 4,250,995 | 4,192,779 | 4,204,112 | 4,206,958 | 4,159,639 | |||||||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||||||||||||
| Capital stock | 98,945 | 98,942 | 98,927 | 98,927 | 98,927 | |||||||||||||||
| Surplus | 172,353 | 172,598 | 172,769 | 172,964 | 173,144 | |||||||||||||||
| Undivided profits | 166,745 | 162,326 | 157,832 | 152,237 | 147,432 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax | (4,509 | ) | (3,508 | ) | (2,611 | ) | (9,452 | ) | (13,803 | ) | ||||||||||
| Treasury stock at cost | (40,090 | ) | (40,871 | ) | (41,900 | ) | (42,897 | ) | (43,887 | ) | ||||||||||
| Total shareholders' equity | 393,444 | 389,487 | 385,017 | 371,779 | 361,813 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,644,439 | 4,582,266 | 4,589,129 | 4,578,737 | 4,521,452 | ||||||||||||||
| Outstanding shares (thousands) | 94,857 | 94,785 | 94,665 | 94,564 | 94,463 | |||||||||||||||
Page | 12
NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
Nonperforming Assets
| 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | 12/31/13 | ||||||||||||||||
| New York and other states* | ||||||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||||||
| Commercial | $ | 3,835 | 4,226 | 5,132 | 4,853 | 6,952 | ||||||||||||||
| Real estate mortgage - 1 to 4 family | 27,221 | 29,736 | 31,433 | 34,597 | 31,045 | |||||||||||||||
| Installment | 77 | 95 | 87 | 103 | 93 | |||||||||||||||
| Total non-accrual loans | 31,133 | 34,057 | 36,652 | 39,553 | 38,090 | |||||||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | 125 | 155 | 159 | 162 | 166 | |||||||||||||||
| Total nonperforming loans | 31,258 | 34,212 | 36,811 | 39,715 | 38,256 | |||||||||||||||
| Other real estate owned | 5,533 | 5,238 | 3,930 | 4,707 | 3,348 | |||||||||||||||
| Total nonperforming assets | $ | 36,791 | 39,450 | 40,741 | 44,422 | 41,604 | ||||||||||||||
| Florida | ||||||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||||||
| Commercial | $ | - | 517 | 517 | 517 | - | ||||||||||||||
| Real estate mortgage - 1 to 4 family | 2,740 | 2,395 | 3,578 | 4,668 | 5,137 | |||||||||||||||
| Installment | 13 | 1 | 1 | 7 | - | |||||||||||||||
| Total non-accrual loans | 2,753 | 2,913 | 4,096 | 5,192 | 5,137 | |||||||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | - | - | - | - | - | |||||||||||||||
| Total nonperforming loans | 2,753 | 2,913 | 4,096 | 5,192 | 5,137 | |||||||||||||||
| Other real estate owned | 908 | 1,188 | 4,365 | 4,300 | 5,381 | |||||||||||||||
| Total nonperforming assets | $ | 3,661 | 4,101 | 8,461 | 9,492 | 10,518 | ||||||||||||||
| Total | ||||||||||||||||||||
| Loans in nonaccrual status: | ||||||||||||||||||||
| Commercial | $ | 3,835 | 4,743 | 5,649 | 5,370 | 6,952 | ||||||||||||||
| Real estate mortgage - 1 to 4 family | 29,961 | 32,131 | 35,011 | 39,265 | 36,182 | |||||||||||||||
| Installment | 90 | 96 | 88 | 110 | 93 | |||||||||||||||
| Total non-accrual loans | 33,886 | 36,970 | 40,748 | 44,745 | 43,227 | |||||||||||||||
| Other nonperforming real estate mortgages - 1 to 4 family | 125 | 155 | 159 | 162 | 166 | |||||||||||||||
| Total nonperforming loans | 34,011 | 37,125 | 40,907 | 44,907 | 43,393 | |||||||||||||||
| Other real estate owned | 6,441 | 6,426 | 8,295 | 9,007 | 8,729 | |||||||||||||||
| Total nonperforming assets | $ | 40,452 | 43,551 | 49,202 | 53,914 | 52,122 | ||||||||||||||
| Quarterly Net Chargeoffs (Recoveries) | ||||||||||||||||||||
| 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | 12/31/13 | ||||||||||||||||
| New York and other states* | ||||||||||||||||||||
| Commercial | $ | (16 | ) | 124 | 13 | 242 | 176 | |||||||||||||
| Real estate mortgage - 1 to 4 family | 1,591 | 1,105 | 1,496 | 851 | 1,194 | |||||||||||||||
| Installment | 48 | 57 | 24 | 44 | (2 | ) | ||||||||||||||
| Total net chargeoffs | $ | 1,623 | 1,286 | 1,533 | 1,137 | 1,368 | ||||||||||||||
| Florida | ||||||||||||||||||||
| Commercial | $ | (476 | ) | (1 | ) | (2 | ) | 612 | (1 | ) | ||||||||||
| Real estate mortgage - 1 to 4 family | 37 | 242 | 59 | 428 | 138 | |||||||||||||||
| Installment | 1 | (4 | ) | 10 | 2 | 3 | ||||||||||||||
| Total net chargeoffs | $ | (438 | ) | 237 | 67 | 1,042 | 140 | |||||||||||||
| Total | ||||||||||||||||||||
| Commercial | $ | (492 | ) | 123 | 11 | 854 | 175 | |||||||||||||
| Real estate mortgage - 1 to 4 family | 1,628 | 1,347 | 1,555 | 1,279 | 1,332 | |||||||||||||||
| Installment | 49 | 53 | 34 | 46 | 1 | |||||||||||||||
| Total net chargeoffs | $ | 1,185 | 1,523 | 1,600 | 2,179 | 1,508 | ||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | 12/31/13 | ||||||||||||||||
| Total nonperforming loans(1) | $ | 34,011 | 37,125 | 40,907 | 44,907 | 43,393 | ||||||||||||||
| Total nonperforming assets(1) | 40,452 | 43,551 | 49,202 | 53,914 | 52,122 | |||||||||||||||
| Total net chargeoffs(2) | 1,185 | 2,179 | 1,600 | 2,179 | 1,508 | |||||||||||||||
| Allowance for loan losses(1) | 46,327 | 46,512 | 46,935 | 47,035 | 47,714 | |||||||||||||||
| Nonperforming loans to total loans | 1.08 | % | 1.20 | % | 1.36 | % | 1.53 | % | 1.49 | % | ||||||||||
| Nonperforming assets to total assets | 0.87 | % | 0.95 | % | 1.07 | % | 1.18 | % | 1.15 | % | ||||||||||
| Allowance for loan losses to total loans | 1.47 | % | 1.51 | % | 1.56 | % | 1.60 | % | 1.64 | % | ||||||||||
| Coverage ratio(1) | 136.2 | % | 125.3 | % | 114.7 | % | 104.7 | % | 110.0 | % | ||||||||||
| Annualized net chargeoffs to average loans(2) | 0.15 | % | 0.29 | % | 0.22 | % | 0.30 | % | 0.21 | % | ||||||||||
| Allowance for loan losses to annualized net chargeoffs(2) | 9.8 | x | 5.3 | x | 7.3 | x | 5.4 | x | 7.9 | x | ||||||||||
* Includes New York, New Jersey, Vermont and Massachusetts.
| (1) | At period-end |
| (2) | For the period ended |
Page | 13
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY- INTEREST RATES AND INTEREST DIFFERENTIAL
| (dollars in thousands) | Three months ended | Three months ended | ||||||||||||||||||||||
| (Unaudited) | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| Balance | Rate | Balance | Rate | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||
| U. S. government sponsored enterprises | $ | 80,520 | 233 | 1.16 | % | $ | 197,755 | 586 | 1.18 | % | ||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-residential | 517,694 | 2,733 | 2.11 | 543,856 | 3,027 | 2.23 | ||||||||||||||||||
| State and political subdivisions | 2,436 | 45 | 7.32 | 8,577 | 149 | 6.96 | ||||||||||||||||||
| Corporate bonds | 1,261 | 2 | 0.54 | 28,689 | 138 | 1.92 | ||||||||||||||||||
| Small Business Administration-guaranteed participation securities | 103,846 | 524 | 2.02 | 111,859 | 562 | 2.01 | ||||||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-commercial | 10,737 | 37 | 1.40 | 11,004 | 38 | 1.39 | ||||||||||||||||||
| Other | 685 | 4 | 2.34 | 523 | 4 | 3.06 | ||||||||||||||||||
| Total securities available for sale | 717,179 | 3,578 | 2.00 | 902,263 | 4,504 | 2.00 | ||||||||||||||||||
| Federal funds sold and other short-term Investments | 579,870 | 363 | 0.25 | 522,461 | 324 | 0.25 | ||||||||||||||||||
| Held to maturity securities: | ||||||||||||||||||||||||
| Corporate bonds | 9,958 | 154 | 6.18 | 9,943 | 153 | 6.19 | ||||||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-residential | 62,720 | 512 | 3.27 | 78,821 | 649 | 3.29 | ||||||||||||||||||
| Total held to maturity securities | 72,678 | 666 | 3.67 | 88,764 | 802 | 3.62 | ||||||||||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 9,228 | 123 | 5.33 | 10,500 | 129 | 4.91 | ||||||||||||||||||
| Commercial loans | 220,516 | 2,847 | 5.16 | 215,124 | 2,766 | 5.14 | ||||||||||||||||||
| Residential mortgage loans | 2,543,869 | 28,875 | 4.54 | 2,306,591 | 26,771 | 4.64 | ||||||||||||||||||
| Home equity lines of credit | 349,984 | 3,161 | 3.58 | 339,281 | 2,954 | 3.45 | ||||||||||||||||||
| Installment loans | 6,861 | 176 | 10.19 | 5,653 | 175 | 12.26 | ||||||||||||||||||
| Loans, net of unearned income | 3,121,230 | 35,059 | 4.49 | 2,866,649 | 32,666 | 4.55 | ||||||||||||||||||
| Total interest earning assets | 4,500,185 | 39,789 | 3.53 | 4,390,637 | 38,425 | 3.50 | ||||||||||||||||||
| Allowance for loan losses | (46,902 | ) | (48,393 | ) | ||||||||||||||||||||
| Cash & non-interest earning assets | 140,041 | 122,386 | ||||||||||||||||||||||
| Total assets | $ | 4,593,324 | $ | 4,464,630 | ||||||||||||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Interest bearing checking accounts | $ | 656,694 | 98 | 0.06 | % | $ | 587,854 | 83 | 0.06 | % | ||||||||||||||
| Money market accounts | 644,676 | 634 | 0.39 | 649,574 | 611 | 0.37 | ||||||||||||||||||
| Savings | 1,214,885 | 663 | 0.22 | 1,219,178 | 790 | 0.26 | ||||||||||||||||||
| Time deposits | 1,148,055 | 2,366 | 0.82 | 1,123,671 | 1,982 | 0.70 | ||||||||||||||||||
| Total interest bearing deposits | 3,664,310 | 3,761 | 0.41 | 3,580,277 | 3,466 | 0.38 | ||||||||||||||||||
| Short-term borrowings | 185,577 | 335 | 0.72 | 189,754 | 382 | 0.80 | ||||||||||||||||||
| Total interest bearing liabilities | 3,849,887 | 4,096 | 0.42 | 3,770,031 | 3,848 | 0.40 | ||||||||||||||||||
| Demand deposits | 323,070 | 313,174 | ||||||||||||||||||||||
| Other liabilities | 25,214 | 23,469 | ||||||||||||||||||||||
| Shareholders' equity | 395,153 | 357,956 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,593,324 | $ | 4,464,630 | ||||||||||||||||||||
| Net interest income, tax equivalent | 35,693 | 34,577 | ||||||||||||||||||||||
| Net interest spread | 3.11 | % | 3.10 | % | ||||||||||||||||||||
Net interest margin (net interest income to total interest earning assets) | 3.17 | % | 3.15 | % | ||||||||||||||||||||
| Tax equivalent adjustment | (24 | ) | (61 | ) | ||||||||||||||||||||
| Net interest income | 35,669 | 34,516 | ||||||||||||||||||||||
Page | 14
| (dollars in thousands) | Year ended | Year ended | ||||||||||||||||||||||
| (Unaudited) | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| Balance | Rate | Balance | Rate | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||
| U. S. government sponsored enterprises | $ | 113,563 | 1,417 | 1.25 | % | $ | 221,028 | 2,600 | 1.18 | % | ||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-residential | 555,430 | 12,150 | 2.19 | 545,487 | 11,385 | 2.09 | ||||||||||||||||||
| State and political subdivisions | 3,924 | 280 | 7.14 | 12,845 | 862 | 6.71 | ||||||||||||||||||
| Corporate bonds | 3,156 | 65 | 2.04 | 46,049 | 812 | 1.76 | ||||||||||||||||||
| Small Business Administration-guaranteed participation securities | 107,029 | 2,154 | 2.01 | 109,913 | 2,180 | 1.98 | ||||||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-commercial | 10,837 | 151 | 1.40 | 10,420 | 144 | 1.38 | ||||||||||||||||||
| Other | 674 | 16 | 2.37 | 625 | 17 | 2.72 | ||||||||||||||||||
| Total securities available for sale | 794,613 | 16,233 | 2.04 | 946,367 | 18,000 | 1.90 | ||||||||||||||||||
| Federal funds sold and other short-term Investments | 589,873 | 1,464 | 0.25 | 502,136 | 1,240 | 0.25 | ||||||||||||||||||
| Held to maturity securities: | ||||||||||||||||||||||||
| Corporate bonds | 9,952 | 615 | 6.18 | 14,011 | 833 | 5.95 | ||||||||||||||||||
| Mortgage backed securities and collateralized mortgage obligations-residential | 68,404 | 2,259 | 3.30 | 90,360 | 2,840 | 3.14 | ||||||||||||||||||
| Total held to maturity securities | 78,356 | 2,874 | 3.67 | �� | 104,371 | 3,673 | 3.52 | |||||||||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 10,135 | 511 | 5.04 | 10,266 | 490 | 4.77 | ||||||||||||||||||
| Commercial loans | 221,251 | 11,328 | 5.12 | 214,756 | 11,210 | 5.22 | ||||||||||||||||||
| Residential mortgage loans | 2,443,558 | 111,720 | 4.57 | 2,216,346 | 104,646 | 4.72 | ||||||||||||||||||
| Home equity lines of credit | 343,264 | 12,263 | 3.57 | 335,409 | 11,452 | 3.41 | ||||||||||||||||||
| Installment loans | 6,083 | 678 | 11.14 | 5,152 | 666 | 12.93 | ||||||||||||||||||
| Loans, net of unearned income | 3,014,156 | 135,989 | 4.51 | 2,771,663 | 127,974 | 4.62 | ||||||||||||||||||
| Total interest earning assets | 4,487,133 | 157,071 | 3.50 | 4,334,803 | 151,377 | 3.49 | ||||||||||||||||||
| Allowance for loan losses | (47,409 | ) | (48,452 | ) | ||||||||||||||||||||
| Cash & non-interest earning assets | 135,217 | 136,042 | ||||||||||||||||||||||
| Total assets | $ | 4,574,941 | $ | 4,422,393 | ||||||||||||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Interest bearing checking accounts | $ | 636,140 | 365 | 0.06 | % | $ | 578,531 | 329 | 0.06 | % | ||||||||||||||
| Money market accounts | 650,779 | 2,499 | 0.38 | 650,324 | 2,516 | 0.39 | ||||||||||||||||||
| Savings | 1,227,473 | 2,662 | 0.22 | 1,218,655 | 3,333 | 0.27 | ||||||||||||||||||
| Time deposits | 1,145,118 | 8,565 | 0.75 | 1,113,473 | 7,622 | 0.68 | ||||||||||||||||||
| Total interest bearing deposits | 3,659,510 | 14,091 | 0.39 | 3,560,983 | 13,800 | 0.39 | ||||||||||||||||||
| Short-term borrowings | 189,430 | 1,397 | 0.74 | 180,275 | 1,483 | 0.82 | ||||||||||||||||||
| Total interest bearing liabilities | 3,848,940 | 15,488 | 0.40 | 3,741,258 | 15,283 | 0.41 | ||||||||||||||||||
| Demand deposits | 319,458 | 302,437 | ||||||||||||||||||||||
| Other liabilities | 23,733 | 21,719 | ||||||||||||||||||||||
| Shareholders' equity | 382,810 | 356,979 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,574,941 | $ | 4,422,393 | ||||||||||||||||||||
| Net interest income, tax equivalent | 141,583 | 136,094 | ||||||||||||||||||||||
| Net interest spread | 3.10 | % | 3.08 | % | ||||||||||||||||||||
| Net interest margin (net interest income to total interest earning assets) | 3.16 | % | 3.14 | % | ||||||||||||||||||||
| Tax equivalent adjustment | (130 | ) | (330 | ) | ||||||||||||||||||||
| Net interest income | 141,453 | 135,764 | ||||||||||||||||||||||
Page | 15
Non-GAAP Financial Measures Reconciliation
Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, but excluding other real estate expense, net, which we refer to below as recurring expense, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, but excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides one reasonable measure of core expenses relative to core revenue.
We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
| (dollars in thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| 12/31/14 | 09/30/14 | 12/31/13 | ||||||||||
| Tangible Book Value Per Share | ||||||||||||
| Equity | $ | 393,444 | 389,487 | 361,813 | ||||||||
| Less: Intangible assets | 553 | 553 | 553 | |||||||||
| Tangible equity | 392,891 | 388,934 | 361,260 | |||||||||
| Shares outstanding | 94,857 | 94,785 | 94,463 | |||||||||
| Tangible book value per share | 4.14 | 4.10 | 3.82 | |||||||||
| Book value per share | 4.15 | 4.11 | 3.83 | |||||||||
| Tangible Equity to Tangible Assets | ||||||||||||
| Total Assets | 4,644,439 | 4,582,266 | 4,521,452 | |||||||||
| Less: Intangible assets | 553 | 553 | 553 | |||||||||
| Tangible assets | 4,643,886 | 4,581,713 | 4,520,899 | |||||||||
| Tangible Equity to Tangible Assets | 8.46 | % | 8.49 | % | 7.99 | % | ||||||
| Equity to Assets | 8.47 | % | 8.50 | % | 8.00 | % | ||||||
| 3 Months Ended | Years Ended | |||||||||||||||||||
| Efficiency Ratio | 12/31/14 | 09/30/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||||
| Net interest income (fully taxable equivalent) | $ | 35,693 | 35,676 | 34,577 | 141,583 | 136,094 | ||||||||||||||
| Non-interest income | 4,752 | 4,890 | 4,848 | 19,906 | 19,770 | |||||||||||||||
| Less: Net gain on sale of building and net gain on sale of nonperforming loans | - | - | - | 1,719 | - | |||||||||||||||
| Less: Net gain on securities | 335 | 376 | 188 | 717 | 1,622 | |||||||||||||||
| Recurring revenue | 40,110 | 40,190 | 39,237 | 159,053 | 154,242 | |||||||||||||||
| Total Noninterest expense | 22,240 | 22,192 | 20,891 | 84,670 | 85,005 | |||||||||||||||
| Less: Other real estate expense, net | 841 | 1,001 | 430 | 1,009 | 3,598 | |||||||||||||||
| Recurring expense | 21,399 | 21,191 | 20,461 | 83,661 | 81,407 | |||||||||||||||
| Efficiency Ratio | 53.35 | % | 52.73 | % | 52.15 | % | 52.60 | % | 52.78 | % | ||||||||||
Page | 16