Exhibit 99.1
Susquehanna Bancshares, Inc. Announces Fourth Quarter and Full Year 2012 Results
Highlights
- GAAP EPS of $0.23 for Fourth Quarter; $0.77 for Full Year 2012
- Return on Average Tangible Equity (ROATE) of 14.01% for Fourth Quarter
- Credit Quality Improvement Continues; Nonaccrual Loans and Leases Decline 17% from September 30, 2012
- Organic Loan Growth of 4.5% for 2012; Commercial Loans Increase 4.8% over September 30, 2012
- Organic Core Deposit Growth of 9.8% for 2012
- Net Interest Margin Increases to 4.06% for Fourth Quarter
LITITZ, Pa.--(BUSINESS WIRE)--January 23, 2013--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced that it earned net income for the fourth quarter ended December 31, 2012 of $43.2 million, or $0.23 per diluted share, compared to net income of $19.1 million for the fourth quarter of 2011, or $0.12 per diluted share. Net income for the year ended December 31, 2012 was $141.2 million, or $0.77 per diluted share, compared with $54.9 million, or $0.40 per diluted share for the year ended December 31, 2011.
“We established some ambitious goals for 2012,” said William J. Reuter, Chairman and Chief Executive Officer. “These results demonstrate the remarkable success of our teams in achieving our objectives for the year -- integrating the customers, employees and markets we acquired in the Abington and Tower mergers, continuing strong improvement in credit quality, growing loans, deposits and revenues, and improving core profitability and shareholder return.”
Mr. Reuter continued, “We are excited about the opportunity to build on this success in 2013 and beyond as we pursue our mission to help customers achieve their financial goals, deliver a superior return for our shareholders and build the economic strength of our communities.”
Linked Quarter Results (Fourth Quarter 2012 vs. Third Quarter 2012)
- Loans and leases increased $219.1 million, or 1.7%, from September 30, 2012 to $12.9 billion at December 31, 2012, as significant growth in commercial loans and leases was offset by a decrease in real estate construction loans. Growth in lease balances was driven largely by increased auto leasing demand. Growth for the quarter in each major category is as follows:
- Commercial loans increased 4.8%.
- Real estate – construction loans decreased 6.2%.
- Real estate secured – residential loans increased 0.4%.
- Real estate secured – commercial loans increased 0.4%.
- Consumer loans increased 1.5%.
- Leases increased 15.8%.
- Total deposits declined $145.3 million to $12.6 billion as of December 31, 2012, as a 2.1% increase in core deposits was offset by a decrease in time deposits. Growth for the quarter in each major category is as follows:
- Non-interest bearing demand deposits increased 2.3%.
- Interest-bearing demand deposits increased 1.9%.
- Savings deposits increased 2.3%.
- Time deposits decreased 8.0%.
- Net interest margin increased 14 basis points to 4.06% for the fourth quarter of 2012 compared to 3.92% for the third quarter of 2012.
- Non-interest income increased slightly to $43.8 million for the fourth quarter of 2012.
- Non-interest expense for the fourth quarter of 2012 increased to $125.3 million, including pre-tax merger related expenses of $1.1 million and a $409 thousand expense relating to the early redemption of $15.5 million in certain trust preferred securities. An increase in salary and benefit expenses related principally to $4.0 million, pre-tax, in additional bonus accruals triggered by reaching the upper tier of corporate financial performance goals for 2012. Additionally, other expenses include $2.2 million, pre-tax, for settlement of litigation.
- The efficiency ratio for the fourth quarter of 2012 was 60.96%, compared to 58.98% for the third quarter of 2012, in each case calculated after excluding pre-tax merger related expenses and loss on extinguishment of debt. This increase resulted from the additional bonus expense and litigation expense described above.
- Net charge-offs as a percentage of average loans and leases for the quarter ended December 31, 2012 was 0.50% compared to 0.62% for the third quarter of 2012. Non-performing assets as a percentage of loans, leases and foreclosed real estate owned decreased 20 basis points from September 30, 2012 to 0.96% at December 31, 2012. The provision for loan and lease losses for the quarter ended December 31, 2012 was $13.0 million, compared to $16.0 million for the quarter ended September 30, 2012. The allowance for loan and lease losses was $184.0 million at December 31, 2012, representing 1.43% of total loans and leases and 188% of nonaccrual loans and leases, compared to $186.9 million at September 30, 2012, representing 1.47% of total loans and leases and 158% of nonaccrual loans and leases.
Fourth Quarter/Full Year Results (2012 vs. 2011)
- Loans and leases increased 23.4% from December 31, 2011 to $12.9 billion at December 31, 2012.
- Growth in loans and leases consisted of:
- $2.0 billion acquired through the acquisition of Tower Bancorp, Inc. (“Tower”) on February 17, 2012; and
- $471.3 million of internally-generated net loan growth, resulting in organic growth in loans and leases of 4.5% for the year ended December 31, 2012.
- Commercial loans increased 21.5%.
- Real estate - construction loans increased 2.2%.
- Real estate secured - residential loans increased 26.6%.
- Real estate secured - commercial loans increased 26.4%.
- Consumer loans increased 16.6%.
- Leases increased 33.2%.
- Total deposits increased 22.2% from December 31, 2011 to $12.6 billion at December 31, 2012.
- Growth in total deposits consisted of:
- $2.1 billion of deposits assumed in the Tower acquisition; and
- $215.2 million in organic deposit growth, resulting in organic deposit growth of 2.1% for the year ended December 31, 2012.
- Excluding $1.3 billion in core deposits assumed in the Tower acquisition, core deposits increased by $675.4 million representing organic core deposit growth of 9.8% for the year ended December 31, 2012.
- Non-interest-bearing demand deposits increased 25.7%.
- Interest-bearing demand deposits increased 31.3%.
- Savings deposits increased 18.8%.
- Time deposits increased 9.7%.
- Net interest margin increased 47 basis points to 4.06% compared to 3.59% for the fourth quarter of 2011, driven primarily by the balance sheet restructuring in the fourth quarter of 2011, redemption of trust preferred securities in the third quarter of 2012 and the benefits of the Tower acquisition. For the year ended December 31, 2012, the net interest margin was 4.01%, compared with 3.60% for the year ended December 31, 2011.
- The efficiency ratio for the fourth quarter of 2012 improved to 60.96% from 66.34% in the fourth quarter of 2011, in each case calculated after excluding pre-tax merger related expenses, bargain purchase gain, and loss on extinguishment of debt. For the year ended December 31, 2012, the efficiency ratio was 60.37%, compared with 66.83% for the year ended December 31, 2011.
- Net charge-offs as a percentage of average loans and leases for the quarter ended December 31, 2012 was 0.50% compared to 0.95% for the fourth quarter of 2011. For the year ended December 31, 2012, net charge-offs represented 0.55% of average loans and leases, compared to 1.16% for the year ended December 31, 2011. Non-performing assets as a percentage of loans, leases and foreclosed real estate was 0.96% at December 31, 2012 compared to 1.88% at December 31, 2011. The allowance for loan and lease losses was $184.0 million at December 31, 2012, representing 1.43% of total loans and leases and 188% of nonaccrual loans and leases, compared to $188.1 million at December 31, 2011, representing 1.80% of total loans and leases and 120% of nonaccrual loans and leases.
- Return on average assets and average tangible equity (1) for the fourth quarter ended December 31, 2012 finished at 0.95% and 14.01%, respectively. This compared to results of 0.50% and 6.98% for the same measurements, respectively, for the fourth quarter of 2011.
- Return on average assets and average tangible equity (1) for the year ended December 31, 2012 finished at 0.81% and 12.03%, respectively. This compared to results of 0.38% and 6.01% for the same measurements, respectively, for the year ended December 31, 2011.
- Susquehanna’s capital ratios continue to exceed management’s minimum targets, which are generally maintained at 100 basis points over proposed Basel III minimums, including the conservation buffers. The company’s tangible common ratio(2) and Tier 1 common to risk-weighted assets ratio were 7.94% and 9.94%, respectively, at December 31, 2012.
(1) Return on average tangible equity is a non-GAAP based financial measure. Please refer to the calculations and management’s reasons for using this measure in the accompanying financial schedules.
(2) The tangible common ratio is a non-GAAP based financial measure. Please refer to the calculations and management’s reasons for using this measure in the accompanying financial schedules.
Additional Events
- On December 11, 2012, Susquehanna’s board of directors declared a dividend of $0.07 per common share for the first quarter of 2013, payment of which was accelerated and paid December 31, 2012 to shareholders of record December 21, 2012.
- On December 13, 2012, Susquehanna redeemed $15.5 million of trust preferred securities originally issued by Patriot Bank Corp., with an effective rate of 9.5%.
Susquehanna will broadcast its fourth quarter 2012 results conference call over the Internet on January 24, 2013 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of fourth quarter and full year 2012 results. The discussion may also include forward-looking information and financial targets. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Web site. The event may be accessed by selecting "Investor Relations" near the top right of the home page then “Overview” and clicking on the fourth quarter webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast will be available on the Web site shortly after the call concludes.
Susquehanna is a financial services holding company with assets of more than $18 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 261 branch locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $7.6 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. Investor information may be requested through Susquehanna’s Web site at www.susquehanna.net.
This press release contains certain financial information determined by methods other than in accordance with GAAP. Susquehanna’s management uses these non-GAAP measures in its analysis of the company’s performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information.
The presentation of these non-GAAP financial measures is intended to supplement investors’ understanding of Susquehanna’s core business activities. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of Susquehanna’s business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; and deteriorating economic conditions, and other risks and uncertainties, including those detailed in Susquehanna’s filings with the Securities and Exchange Commission. Susquehanna encourages readers of this release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Forward-looking statements speak only as of the date they are made. Susquehanna does not intend to update publicly any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events except as required by law.
| | | | | | | | | | | | | | |
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | | | | | |
SUMMARY CONSOLIDATED FINANCIAL INFORMATION |
(in thousands, except per share data) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | Twelve Months YTD |
| | 4Q12 | | 3Q12 | | 2Q12 | | 1Q12 | | 4Q11 | | 2012 | | 2011 |
Balance Sheet (EOP) | | | | | | | | | | | | | | |
Investments | | $ | 2,730,335 | | $ | 2,908,404 | | $ | 2,866,119 | | $ | 2,756,836 | | $ | 2,423,107 | | | $ | 2,730,335 | | $ | 2,423,107 | |
Loans and leases | | | 12,894,741 | | | 12,675,607 | | | 12,585,912 | | | 12,521,669 | | | 10,447,930 | | | | 12,894,741 | | | 10,447,930 | |
Allowance for loan and lease losses | | | 184,020 | | | 186,897 | | | 190,628 | | | 194,730 | | | 188,100 | | | | 184,020 | | | 188,100 | |
Total assets | | | 18,037,667 | | | 18,106,730 | | | 18,040,009 | | | 17,807,026 | | | 14,974,789 | | | | 18,037,667 | | | 14,974,789 | |
Deposits | | | 12,580,046 | | | 12,725,379 | | | 12,690,524 | | | 12,563,541 | | | 10,290,472 | | | | 12,580,046 | | | 10,290,472 | |
Other short-term borrowings | | | 817,577 | | | 762,257 | | | 648,675 | | | 723,758 | | | 613,306 | | | | 817,577 | | | 613,306 | |
Federal Home Loan Bank borrowings | | | 1,199,062 | | | 1,110,884 | | | 1,015,724 | | | 970,673 | | | 971,020 | | | | 1,199,062 | | | 971,020 | |
Other long-term debt | | | 513,401 | | | 639,753 | | | 678,282 | | | 692,059 | | | 656,726 | | | | 513,401 | | | 656,726 | |
Shareholders' equity | | | 2,595,909 | | | 2,584,682 | | | 2,544,730 | | | 2,512,584 | | | 2,189,628 | | | | 2,595,909 | | | 2,189,628 | |
| | | | | | | | | | | | | | |
Average Balance Sheet | | | | | | | | | | | | | | |
Investments | | $ | 2,764,886 | | $ | 2,811,730 | | $ | 2,704,232 | | $ | 2,547,408 | | $ | 2,645,227 | | | $ | 2,707,508 | | $ | 2,529,462 | |
Loans and leases | | | 12,725,886 | | | 12,612,477 | | | 12,527,713 | | | 11,411,592 | | | 10,358,071 | | | | 12,321,328 | | | 9,803,863 | |
Total earning assets | | | 15,604,029 | | | 15,537,037 | | | 15,332,806 | | | 14,065,583 | | | 13,128,969 | | | | 15,137,244 | | | 12,431,749 | |
Total assets | | | 18,018,889 | | | 18,021,108 | | | 17,799,678 | | | 16,274,773 | | | 15,274,808 | | | | 17,531,297 | | | 14,362,778 | |
Deposits | | | 12,602,430 | | | 12,588,697 | | | 12,471,296 | | | 11,354,537 | | | 10,300,061 | | | | 12,256,107 | | | 9,595,126 | |
Other short-term borrowings | | | 810,517 | | | 748,841 | | | 726,309 | | | 642,128 | | | 588,657 | | | | 732,209 | | | 658,477 | |
Federal Home Loan Bank borrowings | | | 1,166,765 | | | 1,072,555 | | | 1,082,293 | | | 985,294 | | | 1,163,229 | | | | 1,076,962 | | | 1,123,801 | |
Other long-term debt | | | 560,906 | | | 727,382 | | | 686,492 | | | 673,722 | | | 666,277 | | | | 662,027 | | | 684,065 | |
Shareholders' equity | | | 2,597,254 | | | 2,562,092 | | | 2,537,250 | | | 2,348,326 | | | 2,217,036 | | | | 2,511,604 | | | 2,055,717 | |
| | | | | | | | | | | | | | |
Income Statement | | | | | | | | | | | | | | |
Net interest income | | $ | 155,304 | | $ | 149,142 | | $ | 152,670 | | $ | 134,123 | | $ | 115,201 | | | $ | 591,238 | | $ | 433,150 | |
Provision for loan and lease losses | | | 13,000 | | | 16,000 | | | 16,000 | | | 19,000 | | | 22,000 | | | | 64,000 | | | 110,000 | |
Noninterest income | | | 43,772 | | | 43,661 | | | 39,811 | | | 39,515 | | | 71,347 | | | | 166,759 | | | 182,668 | |
Noninterest expense | | | 125,277 | | | 122,910 | | | 121,475 | | | 120,355 | | | 162,395 | | | | 490,017 | | | 460,180 | |
Income before taxes | | | 60,799 | | | 53,893 | | | 55,006 | | | 34,283 | | | 2,153 | | | | 203,980 | | | 45,638 | |
Provision for income taxes | | | 17,625 | | | 17,161 | | | 17,213 | | | 10,810 | | | (16,976 | ) | | | 62,808 | | | (9,267 | ) |
Net income | | | 43,174 | | | 36,732 | | | 37,793 | | | 23,473 | | | 19,129 | | | | 141,172 | | | 54,905 | |
Basic earnings per common share | | | 0.23 | | | 0.20 | | | 0.20 | | | 0.14 | | | 0.12 | | | | 0.77 | | | 0.40 | |
Diluted earnings per common share | | | 0.23 | | | 0.20 | | | 0.20 | | | 0.14 | | | 0.12 | | | | 0.77 | | | 0.40 | |
Cash dividends paid per common share | | | 0.14 | | | 0.06 | | | 0.05 | | | 0.03 | | | 0.03 | | | | 0.28 | | | 0.08 | |
| | | | | | | | | | | | | | |
Asset Quality | | | | | | | | | | | | | | |
Net charge-offs (NCOs) | | $ | 15,877 | | $ | 19,731 | | $ | 20,102 | | $ | 12,370 | | $ | 24,860 | | | $ | 68,080 | | $ | 113,734 | |
| | | | | | | | | | | | | | |
Nonaccrual loans and leases | | $ | 97,767 | | $ | 118,448 | | $ | 127,250 | | $ | 133,489 | | $ | 156,478 | | | $ | 97,767 | | $ | 156,478 | |
Foreclosed real estate | | | 26,245 | | | 28,641 | | | 31,302 | | | 36,456 | | | 41,050 | | | | 26,245 | | | 41,050 | |
Total nonperforming assets (NPAs) | | $ | 124,012 | | $ | 147,089 | | $ | 158,552 | | $ | 169,945 | | $ | 197,528 | | | $ | 124,012 | | $ | 197,528 | |
| | | | | | | | | | | | | | |
Restructured loans | | $ | 67,775 | | $ | 56,823 | | $ | 66,777 | | $ | 72,081 | | $ | 72,852 | | | $ | 67,775 | | $ | 72,852 | |
Loans and leases 90 days past due | | | 8,209 | | | 8,451 | | | 11,203 | | | 9,758 | | | 10,077 | | | | 8,209 | | | 10,077 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | | | | | |
SUMMARY CONSOLIDATED FINANCIAL INFORMATION |
(in thousands, except per share data) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | Twelve Months YTD |
| | 4Q12 | | 3Q12 | | 2Q12 | | 1Q12 | | 4Q11 | | 2012 | | 2011 |
| | | | | | | | | | | | | | |
Credit Quality | | | | | | | | | | | | | | |
NCOs / Average loans and leases | | | 0.50 | % | | | 0.62 | % | | | 0.65 | % | | | 0.44 | % | | | 0.95 | % | | | 0.55 | % | | | 1.16 | % |
NPAs / Loans and leases + foreclosed real estate | | | 0.96 | % | | | 1.16 | % | | | 1.26 | % | | | 1.35 | % | | | 1.88 | % | | | 0.96 | % | | | 1.88 | % |
ALLL / Nonaccrual loans and leases | | | 188.22 | % | | | 157.79 | % | | | 149.81 | % | | | 145.88 | % | | | 120.21 | % | | | 188.22 | % | | | 120.21 | % |
ALLL / Total loans and leases | | | 1.43 | % | | | 1.47 | % | | | 1.51 | % | | | 1.56 | % | | | 1.80 | % | | | 1.43 | % | | | 1.80 | % |
| | | | | | | | | | | | | | |
Profitability | | | | | | | | | | | | | | |
Return on average assets | | | 0.95 | % | | | 0.81 | % | | | 0.85 | % | | | 0.58 | % | | | 0.50 | % | | | 0.81 | % | | | 0.38 | % |
Return on average equity | | | 6.61 | % | | | 5.70 | % | | | 5.99 | % | | | 4.02 | % | | | 3.42 | % | | | 5.62 | % | | | 2.67 | % |
Return on average tangible equity (1) | | | 14.01 | % | | | 12.41 | % | | | 13.23 | % | | | 8.36 | % | | | 6.98 | % | | | 12.03 | % | | | 6.01 | % |
Net interest margin | | | 4.06 | % | | | 3.92 | % | | | 4.10 | % | | | 3.94 | % | | | 3.59 | % | | | 4.01 | % | | | 3.60 | % |
Efficiency ratio (1) | | | 60.96 | % | | | 58.98 | % | | | 60.21 | % | | | 61.39 | % | | | 66.34 | % | | | 60.37 | % | | | 66.83 | % |
| | | | | | | | | | | | | | |
Per Share Data (EOP) | | | | | | | | | | | | | | |
Closing share price | | $ | 10.48 | | | $ | 10.45 | | | $ | 10.28 | | | $ | 9.88 | | | $ | 8.38 | | | $ | 10.48 | | | $ | 8.38 | |
Stated book value per common share | | | 13.92 | | | | 13.86 | | | | 13.67 | | | | 13.48 | | | | 13.96 | | | | 13.92 | | | | 13.96 | |
Tangible book value per common share (1) | | | 6.88 | | | | 6.82 | | | | 6.59 | | | | 6.36 | | | | 7.28 | | | | 6.88 | | | | 7.28 | |
Price/Book Value | | | 75.31 | % | | | 75.39 | % | | | 75.20 | % | | | 73.29 | % | | | 60.03 | % | | | 75.31 | % | | | 60.03 | % |
Price/Tangible Book Value | | | 152.33 | % | | | 153.23 | % | | | 155.99 | % | | | 155.35 | % | | | 115.11 | % | | | 152.33 | % | | | 115.11 | % |
Number of outstanding shares ('000) | | | 186,554 | | | | 186,465 | | | | 186,221 | | | | 187,856 | | | | 156,867 | | | | 186,554 | | | | 156,867 | |
| | | | | | | | | | | | | | |
Capital Ratios | | | | | | | | | | | | | | |
Tangible common ratio (1) | | | 7.94 | % | | | 7.84 | % | | | 7.61 | % | | | 7.52 | % | | | 8.50 | % | | | 7.94 | % | | | 8.50 | % |
Tier 1 common ratio | | | 9.94 | % | | | 10.07 | % | | | 9.97 | % | | | 9.83 | % | | | 10.76 | % | | | 9.94 | % | | | 10.76 | % |
Leverage ratio | | | 8.98 | % | | | 8.97 | % | | | 9.95 | % | | | 10.79 | % | | | 10.73 | % | | | 8.98 | % | | | 10.73 | % |
Tier 1 capital ratio | | | 11.08 | % | | | 11.37 | % | | | 12.63 | % | | | 12.54 | % | | | 13.65 | % | | | 11.08 | % | | | 13.65 | % |
Total risk-based capital ratio | | | 12.63 | % | | | 13.14 | % | | | 14.38 | % | | | 14.30 | % | | | 15.41 | % | | | 12.63 | % | | | 15.41 | % |
| | | | | | | | | | | | | | |
(1) | | Non-GAAP based financial measures. Please refer to the calculations and management's reasons for using these measures in Appendix A - GAAP to Non-GAAP Reconciliation |
| | |
| | | | | | | | | | |
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | | | | | | | | | |
(in thousands) | | | | | | | | | | |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| | 2012 | | 2012 | | 2012 | | 2012 | | 2011 |
| | | | | | | | | | |
Assets | | | | | | | | | | |
Cash and due from banks | | $ | 277,042 | | | $ | 380,100 | | | $ | 412,282 | | | $ | 350,793 | | | $ | 276,384 | |
Unrestricted short-term investments | | | 39,550 | | | | 24,826 | | | | 31,239 | | | | 27,067 | | | | 55,761 | |
Cash and cash equivalents | | | 316,592 | | | | 404,926 | | | | 443,521 | | | | 377,860 | | | | 332,145 | |
Interest-bearing deposits held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities | | | 4,423 | | | | 3,679 | | | | 5,485 | | | | 4,932 | | | | 5,015 | |
Restricted short-term investments | | | 75,203 | | | | 76,103 | | | | 67,650 | | | | 60,600 | | | | 60,910 | |
Securities available for sale | | | 2,577,901 | | | | 2,763,477 | | | | 2,719,186 | | | | 2,620,245 | | | | 2,295,034 | |
Restricted investment in bank stocks | | | 152,434 | | | | 144,927 | | | | 146,933 | | | | 136,591 | | | | 128,073 | |
Loans and leases, net of deferred costs and fees | | | 12,728,082 | | | | 12,503,737 | | | | 12,409,181 | | | | 12,337,688 | | | | 10,257,161 | |
Loans held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities | | | 166,659 | | | | 171,870 | | | | 176,731 | | | | 183,981 | | | | 190,769 | |
Less: Allowance for loan and lease losses | | | 184,020 | | | | 186,897 | | | | 190,628 | | | | 194,730 | | | | 188,100 | |
Net loans and leases | | | 12,710,721 | | | | 12,488,710 | | | | 12,395,284 | | | | 12,326,939 | | | | 10,259,830 | |
Premises and equipment, net | | | 188,983 | | | | 190,793 | | | | 193,404 | | | | 196,011 | | | | 168,382 | |
Other real estate and foreclosed assets | | | 31,017 | | | | 33,735 | | | | 37,220 | | | | 40,748 | | | | 41,716 | |
Accrued interest receivable | | | 40,304 | | | | 44,681 | | | | 41,274 | | | | 43,928 | | | | 36,820 | |
Bank-owned life insurance | | | 450,270 | | | | 448,866 | | | | 449,023 | | | | 447,686 | | | | 405,296 | |
Goodwill | | | 1,270,359 | | | | 1,268,761 | | | | 1,269,205 | | | | 1,264,892 | | | | 1,018,031 | |
Intangible assets with finite lives | | | 41,332 | | | | 44,549 | | | | 47,831 | | | | 53,662 | | | | 29,081 | |
Deferred income tax assets | | | 4,685 | | | | 30,682 | | | | 47,914 | | | | 35,776 | | | | 6,344 | |
Other assets | | | 173,443 | | | | 162,841 | | | | 176,079 | | | | 197,156 | | | | 188,112 | |
Total assets | | $ | 18,037,667 | | | $ | 18,106,730 | | | $ | 18,040,009 | | | $ | 17,807,026 | | | $ | 14,974,789 | |
Liabilities and Shareholders' Equity | | | | | | | | | | |
Deposits | | $ | 12,580,046 | | | $ | 12,725,379 | | | $ | 12,690,524 | | | $ | 12,563,541 | | | $ | 10,290,472 | |
Federal Home Loan Bank short-term borrowings | | | 1,098,000 | | | | 1,000,000 | | | | 900,000 | | | | 850,000 | | | | 900,000 | |
Other short-term borrowings | | | 817,577 | | | | 762,257 | | | | 648,675 | | | | 723,758 | | | | 613,306 | |
Federal Home Loan Bank long-term borrowings | | | 101,062 | | | | 110,884 | | | | 115,724 | | | | 120,673 | | | | 71,020 | |
Other long-term debt | | | 251,021 | | | | 349,984 | | | | 200,298 | | | | 200,611 | | | | 176,030 | |
Junior subordinated debentures | | | 154,927 | | | | 171,370 | | | | 346,393 | | | | 346,395 | | | | 323,317 | |
Long-term debt of consolidated variable interest entities for which creditors do not have recourse to Susquehanna's general credit | | | 107,453 | | | | 118,399 | | | | 131,591 | | | | 145,053 | | | | 157,379 | |
Accrued interest, taxes, and expenses payable | | | 81,808 | | | | 72,060 | | | | 83,102 | | | | 69,787 | | | | 50,670 | |
Deferred income tax liabilities | | | 14,475 | | | | 0 | | | | 0 | | | | 0 | | | | 25,827 | |
Other liabilities | | | 235,389 | | | | 211,715 | | | | 378,972 | | | | 274,624 | | | | 177,140 | |
Total liabilities | | | 15,441,758 | | | | 15,522,048 | | | | 15,495,279 | | | | 15,294,442 | | | | 12,785,161 | |
Shareholders' equity: | | | | | | | | | | |
Common stock | | | 373,623 | | | | 373,352 | | | | 372,848 | | | | 376,117 | | | | 314,136 | |
Treasury stock | | | (1,850 | ) | | | (1,368 | ) | | | (1,282 | ) | | | (1,278 | ) | | | (1,263 | ) |
Additional paid-in capital | | | 1,645,958 | | | | 1,645,692 | | | | 1,643,474 | | | | 1,638,562 | | | | 1,397,152 | |
Retained earnings | | | 615,436 | | | | 598,371 | | | | 572,818 | | | | 544,476 | | | | 525,657 | |
Accumulated other comprehensive loss | | | (37,258 | ) | | | (31,365 | ) | | | (43,128 | ) | | | (45,293 | ) | | | (46,054 | ) |
Total shareholders' equity | | | 2,595,909 | | | | 2,584,682 | | | | 2,544,730 | | | | 2,512,584 | | | | 2,189,628 | |
Total liabilities and shareholders' equity | | $ | 18,037,667 | | | $ | 18,106,730 | | | $ | 18,040,009 | | | $ | 17,807,026 | | | $ | 14,974,789 | |
| | | | | | | | | | | | | | | | | | | | |
|
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | |
Loans and Leases and Deposits | | | | | | | | | | |
(in thousands) | | | | | | | | | | |
| | Loans and Leases |
| | | 12/31/12 | | | 09/30/12 | | | 06/30/12 | | | 03/31/12 | | | 12/31/11 |
Commercial, financial, and agricultural | | $ | 2,273,611 | | $ | 2,168,708 | | $ | 2,101,561 | | $ | 2,088,948 | | $ | 1,871,027 |
Real estate - construction | | | 847,781 | | | 904,285 | | | 936,996 | | | 993,819 | | | 829,221 |
Real estate secured - residential | | | 4,065,818 | | | 4,047,761 | | | 3,970,115 | | | 3,945,565 | | | 3,212,562 |
Real estate secured - commercial | | | 3,964,608 | | | 3,947,447 | | | 4,034,109 | | | 4,022,788 | | | 3,136,887 |
Consumer | | | 842,552 | | | 829,760 | | | 805,490 | | | 775,913 | | | 722,329 |
Leases | | | 900,371 | | | 777,646 | | | 737,641 | | | 694,636 | | | 675,904 |
Total loans and leases | | $ | 12,894,741 | | $ | 12,675,607 | | $ | 12,585,912 | | $ | 12,521,669 | | $ | 10,447,930 |
| | | | | | | | | | |
| | | | | | | | | | |
| | Deposits |
| | | 12/31/12 | | | 09/30/12 | | | 06/30/12 | | | 03/31/12 | | | 12/31/11 |
Demand | | $ | 1,973,664 | | $ | 1,929,529 | | $ | 1,940,990 | | $ | 1,947,525 | | $ | 1,569,811 |
Interest-bearing demand | | | 5,829,147 | | | 5,717,663 | | | 5,423,198 | | | 5,496,237 | | | 4,439,488 |
Savings | | | 1,032,293 | | | 1,009,110 | | | 1,007,157 | | | 1,008,042 | | | 868,709 |
Core deposits | | | 8,835,104 | | | 8,656,302 | | | 8,371,345 | | | 8,451,804 | | | 6,878,008 |
Time less than $100 | | | 2,262,262 | | | 2,341,623 | | | 2,441,902 | | | 2,527,383 | | | 2,157,282 |
Time of $100 or more | | | 1,482,680 | | | 1,727,454 | | | 1,877,277 | | | 1,584,354 | | | 1,255,182 |
Total deposits | | $ | 12,580,046 | | $ | 12,725,379 | | $ | 12,690,524 | | $ | 12,563,541 | | $ | 10,290,472 |
| | | | | | | | | | | | | | | |
|
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | |
Supplemental Loan and Lease Data | | | | | | | | | | |
(in thousands) | | | | | | | | | | |
| | Nonaccrual Loans and Leases |
| | | 12/31/12 | | | 09/30/12 | | | 06/30/12 | | | 03/31/12 | | | 12/31/11 |
Commercial, financial, and agricultural | | $ | 10,464 | | $ | 10,572 | | $ | 16,076 | | $ | 20,616 | | $ | 14,385 |
Real estate - construction | | | 14,817 | | | 22,534 | | | 25,985 | | | 30,644 | | | 37,727 |
Real estate secured - residential | | | 28,440 | | | 30,740 | | | 31,723 | | | 33,137 | | | 41,922 |
Real estate secured - commercial | | | 42,621 | | | 52,390 | | | 52,296 | | | 47,423 | | | 61,497 |
Consumer | | | 43 | | | 211 | | | 263 | | | 505 | | | 0 |
Leases | | | 1,382 | | | 2,001 | | | 907 | | | 1,164 | | | 947 |
Total nonaccrual loans and leases | | $ | 97,767 | | $ | 118,448 | | $ | 127,250 | | $ | 133,489 | | $ | 156,478 |
| | | | | | | | | | |
| | | | | | | | | | |
| | Restructured Loans |
| | | 12/31/12 | | | 09/30/12 | | | 06/30/12 | | | 03/31/12 | | | 12/31/11 |
Commercial, financial, and agricultural | | $ | 8,744 | | $ | 7,254 | | $ | 9,130 | | $ | 9,547 | | $ | 12,181 |
Real estate - construction | | | 940 | | | 943 | | | 3,979 | | | 3,980 | | | 3,902 |
Real estate secured - residential | | | 23,224 | | | 20,828 | | | 16,494 | | | 15,167 | | | 17,634 |
Real estate secured - commercial | | | 33,589 | | | 27,192 | | | 36,671 | | | 42,883 | | | 38,565 |
Consumer | | | 1,278 | | | 606 | | | 503 | | | 504 | | | 570 |
Total restructured loans | | $ | 67,775 | | $ | 56,823 | | $ | 66,777 | | $ | 72,081 | | $ | 72,852 |
| | | | | | | | | | |
| | | | | | | | | | |
| | Net Charge-offs (Recoveries) |
| | 4Q 2012 | | 3Q 2012 | | 2Q 2012 | | 1Q 2012 | | 4Q 2011 |
Commercial, financial, and agricultural | | $ | 233 | | $ | 3,757 | | $ | 7,145 | | $ | 2,108 | | $ | 1,557 |
Real estate - construction | | | 3,311 | | | 2,909 | | | 4,987 | | | 2,830 | | | 8,484 |
Real estate secured - residential | | | 3,738 | | | 2,470 | | | 2,553 | | | 3,652 | | | 2,641 |
Real estate secured - commercial | | | 6,704 | | | 9,439 | | | 4,485 | | | 2,271 | | | 10,897 |
Consumer | | | 707 | | | 448 | | | 53 | | | 928 | | | 503 |
Leases | | | 1,184 | | | 708 | | | 879 | | | 581 | | | 778 |
Total net charge-offs | | $ | 15,877 | | $ | 19,731 | | $ | 20,102 | | $ | 12,370 | | $ | 24,860 |
| | | | | | | | | | | | | | | |
|
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
|
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) | | | | | | | | |
(in thousands, except per share data) | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | | December 31, |
| | 2012 | | 2012 | | 2012 | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | | | | | | | |
Net interest income | | $ | 155,304 | | | $ | 149,142 | | | $ | 152,670 | | | $ | 134,123 | | | $ | 115,201 | | | $ | 591,238 | | | $ | 433,150 | |
Provision for loan and lease losses | | | 13,000 | | | | 16,000 | | | | 16,000 | | | | 19,000 | | | | 22,000 | | | | 64,000 | | | | 110,000 | |
Net interest income, after provision for loan and lease losses | | | 142,304 | | | | 133,142 | | | | 136,670 | | | | 115,123 | | | | 93,201 | | | | 527,238 | | | | 323,150 | |
Noninterest Income: | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 9,158 | | | | 9,013 | | | | 8,583 | | | | 7,674 | | | | 7,689 | | | | 34,428 | | | | 31,728 | |
Vehicle origination and servicing fees | | | 3,746 | | | | 2,470 | | | | 2,226 | | | | 1,924 | | | | 1,984 | | | | 10,366 | | | | 7,862 | |
Asset management fees | | | 7,340 | | | | 7,366 | | | | 7,359 | | | | 7,073 | | | | 6,821 | | | | 29,138 | | | | 28,153 | |
Income from fiduciary-related activities | | | 2,619 | | | | 2,485 | | | | 2,539 | | | | 2,622 | | | | 1,827 | | | | 10,266 | | | | 7,333 | |
Commissions on brokerage, life insurance and annuity sales | | | 1,923 | | | | 2,072 | | | | 2,399 | | | | 1,907 | | | | 1,697 | | | | 8,301 | | | | 8,202 | |
Commissions on property and casualty insurance sales | | | 3,749 | | | | 3,158 | | | | 3,930 | | | | 5,058 | | | | 3,638 | | | | 15,894 | | | | 14,047 | |
Other commissions and fees | | | 6,680 | | | | 5,387 | | | | 4,800 | | | | 4,643 | | | | 4,147 | | | | 21,510 | | | | 23,728 | |
Income from bank-owned life insurance | | | 1,603 | | | | 1,726 | | | | 1,631 | | | | 1,472 | | | | 1,539 | | | | 6,471 | | | | 4,931 | |
Net gain on sale of loans and leases | | | 6,160 | | | | 5,938 | | | | 4,396 | | | | 3,750 | | | | 3,324 | | | | 20,244 | | | | 12,747 | |
Net realized gain on acquisition | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 39,143 | | | | 0 | | | | 39,143 | |
Net realized gain (loss) on sales of securities | | | (103 | ) | | | 31 | | | | 1,361 | | | | 385 | | | | (706 | ) | | | 1,674 | | | | 3,878 | |
Total other-than-temporary impairment, net of recoveries | | | 749 | | | | 136 | | | | 4,676 | | | | (2,706 | ) | | | (1,132 | ) | | | 2,855 | | | | (6,392 | ) |
Portion of recognized in other comprehensive income (before taxes) | | | (846 | ) | | | (136 | ) | | | (4,676 | ) | | | 2,562 | | | | 828 | | | | (3,096 | ) | | | 3,028 | |
Net impairment losses recognized in earnings | | | (97 | ) | | | 0 | | | | 0 | | | | (144 | ) | | | (304 | ) | | | (241 | ) | | | (3,364 | ) |
Other | | | 994 | | | | 4,015 | | | | 587 | | | | 3,151 | | | | 548 | | | | 8,708 | | | | 4,280 | |
Total noninterest income | | | 43,772 | | | | 43,661 | | | | 39,811 | | | | 39,515 | | | | 71,347 | | | | 166,759 | | | | 182,668 | |
Noninterest Expenses: | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 66,865 | | | | 62,236 | | | | 64,524 | | | | 57,958 | | | | 51,515 | | | | 251,583 | | | | 209,235 | |
Occupancy | | | 11,345 | | | | 11,350 | | | | 11,725 | | | | 10,810 | | | | 9,948 | | | | 45,231 | | | | 37,446 | |
Furniture and equipment | | | 3,976 | | | | 3,823 | | | | 4,309 | | | | 3,617 | | | | 3,148 | | | | 15,725 | | | | 12,596 | |
Advertising and marketing | | | 3,029 | | | | 2,947 | | | | 3,287 | | | | 3,054 | | | | 2,846 | | | | 12,317 | | | | 11,470 | |
FDIC insurance | | | 5,264 | | | | 5,275 | | | | 4,769 | | | | 5,178 | | | | 4,219 | | | | 20,486 | | | | 16,602 | |
Legal fees | | | 2,178 | | | | 2,012 | | | | 1,907 | | | | 2,053 | | | | 2,542 | | | | 8,150 | | | | 9,302 | |
Amortization of intangible assets | | | 3,272 | | | | 3,337 | | | | 3,402 | | | | 2,753 | | | | 2,290 | | | | 12,525 | | | | 8,705 | |
Vehicle lease disposal | | | 1,361 | | | | 1,401 | | | | 1,745 | | | | 1,836 | | | | 2,851 | | | | 6,342 | | | | 10,584 | |
Merger related | | | 1,054 | | | | 1,500 | | | | 3,318 | | | | 11,479 | | | | 12,211 | | | | 17,351 | | | | 14,991 | |
Loss on extinguishment of debt | | | 409 | | | | 5,451 | | | | 0 | | | | 0 | | | | 50,020 | | | | 5,860 | | | | 50,020 | |
Other | | | 26,524 | | | | 23,578 | | | | 22,489 | | | | 21,617 | | | | 20,805 | | | | 94,447 | | | | 79,229 | |
Total noninterest expenses | | | 125,277 | | | | 122,910 | | | | 121,475 | | | | 120,355 | | | | 162,395 | | | | 490,017 | | | | 460,180 | |
Income before income taxes | | | 60,799 | | | | 53,893 | | | | 55,006 | | | | 34,283 | | | | 2,153 | | | | 203,980 | | | | 45,638 | |
Provision (benefit) for income taxes | | | 17,625 | | | | 17,161 | | | | 17,213 | | | | 10,810 | | | | (16,976 | ) | | | 62,808 | | | | (9,267 | ) |
Net Income | | $ | 43,174 | | | $ | 36,732 | | | $ | 37,793 | | | $ | 23,473 | | | $ | 19,129 | | | $ | 141,172 | | | $ | 54,905 | |
| | | | | | | | | | | | | | |
Earnings per common share: | | | | | | | | | | | | | | |
Basic | | $ | 0.23 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.14 | | | $ | 0.12 | | | $ | 0.77 | | | $ | 0.40 | |
Diluted | | $ | 0.23 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.14 | | | $ | 0.12 | | | $ | 0.77 | | | $ | 0.40 | |
Cash dividends per common share | | $ | 0.14 | | | $ | 0.06 | | | $ | 0.05 | | | $ | 0.03 | | | $ | 0.03 | | | $ | 0.28 | | | $ | 0.08 | |
Average common shares outstanding: | | | | | | | | | | | | | | |
Basic | | | 186,353 | | | | 186,214 | | | | 187,616 | | | | 171,326 | | | | 156,492 | | | | 182,896 | | | | 136,509 | |
Diluted | | | 186,990 | | | | 187,004 | | | | 188,301 | | | | 171,973 | | | | 156,802 | | | | 183,578 | | | | 136,876 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Susquehanna Bancshares, Inc. | | |
26 North Cedar Street | | |
Lititz, PA 17543 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest rates and interest differential-taxable equivalent basis | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Three Months Ended | | Three Months Ended | | Twelve Months Ended | | Twelve Months Ended |
| | December 31, 2012 | | September 30, 2012 | | December 31, 2011 | | December 31, 2012 | | December 31, 2011 |
| | Average | | | | | | Average | | | | | | Average | | | | | | Average | | | | | | Average | | | | |
| | Balance | | Interest | | Rate (%) | | Balance | | Interest | | Rate (%) | | Balance | | Interest | | Rate (%) | | Balance | | Interest | | Rate (%) | | Balance | | Interest | | Rate (%) |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term investments | | $ | 113,257 | | | $ | 43 | | | 0.15 | | $ | 112,830 | | | $ | 36 | | | 0.13 | | $ | 125,671 | | | $ | 28 | | | 0.09 | | $ | 108,408 | | | $ | 143 | | | 0.13 | | $ | 98,424 | | | $ | 108 | | | 0.11 |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2,362,815 | | | | 12,383 | | | 2.08 | | | 2,421,414 | | | | 13,434 | | | 2.21 | | | 2,253,121 | | | | 14,133 | | | 2.49 | | | 2,320,582 | | | | 53,659 | | | 2.31 | | | 2,129,908 | | | | 61,845 | | | 2.90 |
Tax-exempt | | | 402,071 | | | | 5,591 | | | 5.53 | | | 390,316 | | | | 5,568 | | | 5.68 | | | 392,106 | | | | 5,980 | | | 6.05 | | | 386,926 | | | | 22,518 | | | 5.82 | | | 399,554 | | | | 24,355 | | | 6.10 |
Total investment securities | | | 2,764,886 | | | | 17,974 | | | 2.59 | | | 2,811,730 | | | | 19,002 | | | 2.69 | | | 2,645,227 | | | | 20,113 | | | 3.02 | | | 2,707,508 | | | | 76,177 | | | 2.81 | | | 2,529,462 | | | | 86,200 | | | 3.41 |
Loans and leases, (net): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 12,295,737 | | | | 159,862 | | | 5.17 | | | 12,222,031 | | | | 160,532 | | | 5.23 | | | 10,027,865 | | | | 131,993 | | | 5.22 | | | 11,934,701 | | | | 628,426 | | | 5.27 | | | 9,492,521 | | | | 505,607 | | | 5.33 |
Tax-exempt | | | 430,149 | | | | 5,914 | | | 5.47 | | | 390,446 | | | | 5,305 | | | 5.41 | | | 330,206 | | | | 4,246 | | | 5.10 | | | 386,627 | | | | 21,175 | | | 5.48 | | | 311,342 | | | | 17,503 | | | 5.62 |
Total loans and leases | | | 12,725,886 | | | | 165,776 | | | 5.18 | | | 12,612,477 | | | | 165,837 | | | 5.23 | | | 10,358,071 | | | | 136,239 | | | 5.22 | | | 12,321,328 | | | | 649,601 | | | 5.27 | | | 9,803,863 | | | | 523,110 | | | 5.34 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 15,604,029 | | | | 183,793 | | | 4.69 | | | 15,537,037 | | | | 184,875 | | | 4.73 | | | 13,128,969 | | | | 156,380 | | | 4.73 | | | 15,137,244 | | | | 725,921 | | | 4.80 | | | 12,431,749 | | | | 609,418 | | | 4.90 |
Allowance for loan and lease losses | | | (186,695 | ) | | | | | | | (189,406 | ) | | | | | | | (192,794 | ) | | | | | | | (189,368 | ) | | | | | | | (194,746 | ) | | | | |
Other non-earning assets | | | 2,601,555 | | | | | | | | 2,673,477 | | | | | | | | 2,338,633 | | | | | | | | 2,583,421 | | | | | | | | 2,125,775 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 18,018,889 | | | | | | | $ | 18,021,108 | | | | | | | $ | 15,274,808 | | | | | | | $ | 17,531,297 | | | | | | | $ | 14,362,778 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand | | $ | 5,802,600 | | | | 4,777 | | | 0.33 | | $ | 5,537,196 | | | | 4,817 | | | 0.35 | | $ | 4,393,811 | | | | 5,482 | | | 0.49 | | $ | 5,453,701 | | | | 20,603 | | | 0.38 | | $ | 3,884,182 | | | | 21,323 | | | 0.55 |
Savings | | | 1,018,704 | | | | 273 | | | 0.11 | | | 1,002,981 | | | | 274 | | | 0.11 | | | 875,522 | | | | 293 | | | 0.13 | | | 989,123 | | | | 1,208 | | | 0.12 | | | 815,066 | | | | 1,161 | | | 0.14 |
Time | | | 3,834,971 | | | | 11,649 | | | 1.21 | | | 4,110,685 | | | | 12,085 | | | 1.17 | | | 3,502,751 | | | | 11,409 | | | 1.29 | | | 3,939,528 | | | | 47,168 | | | 1.20 | | | 3,482,801 | | | | 54,294 | | | 1.56 |
Other short-term borrowings | | | 810,517 | | | | 2,205 | | | 1.08 | | | 748,841 | | | | 2,206 | | | 1.17 | | | 588,657 | | | | 2,179 | | | 1.47 | | | 732,209 | | | | 8,711 | | | 1.19 | | | 658,477 | | | | 8,133 | | | 1.24 |
FHLB borrowings | | | 1,166,765 | | | | 3,753 | | | 1.28 | | | 1,072,555 | | | | 3,553 | | | 1.32 | | | 1,163,229 | | | | 9,836 | | | 3.35 | | | 1,076,962 | | | | 13,723 | | | 1.27 | | | 1,123,801 | | | | 42,024 | | | 3.74 |
Long-term debt | | | 560,906 | | | | 1,804 | | | 1.28 | | | 727,382 | | | | 8,992 | | | 4.92 | | | 666,277 | | | | 8,401 | | | 5.00 | | | 662,027 | | | | 27,979 | | | 4.23 | | | 684,065 | | | | 34,683 | | | 5.07 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 13,194,463 | | | | 24,461 | | | 0.74 | | | 13,199,640 | | | | 31,927 | | | 0.96 | | | 11,190,247 | | | | 37,600 | | | 1.33 | | | 12,853,550 | | | | 119,392 | | | 0.93 | | | 10,648,392 | | | | 161,618 | | | 1.52 |
Demand deposits | | | 1,946,155 | | | | | | | | 1,937,835 | | | | | | | | 1,527,977 | | | | | | | | 1,873,755 | | | | | | | | 1,413,077 | | | | | |
Other liabilities | | | 281,017 | | | | | | | | 321,541 | | | | | | | | 339,548 | | | | | | | | 292,388 | | | | | | | | 245,592 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 15,421,635 | | | | | | | | 15,459,016 | | | | | | | | 13,057,772 | | | | | | | | 15,019,693 | | | | | | | | 12,307,061 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | | 2,597,254 | | | | | | | | 2,562,092 | | | | | | | | 2,217,036 | | | | | | | | 2,511,604 | | | | | | | | 2,055,717 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities & shareholders' equity | | $ | 18,018,889 | | | | | | | $ | 18,021,108 | | | | | | | $ | 15,274,808 | | | | | | | $ | 17,531,297 | | | | | | | $ | 14,362,778 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income / yield on average earning assets | | | | $ | 159,332 | | | 4.06 | | | | $ | 152,948 | | | 3.92 | | | | $ | 118,780 | | | 3.59 | | | | $ | 606,529 | | | 4.01 | | | | $ | 447,800 | | | 3.60 |
Taxable equivalent adjustment | | | | | (4,028 | ) | | | | | | | (3,806 | ) | | | | | | | (3,579 | ) | | | | | | | (15,291 | ) | | | | | | | (14,650 | ) | | |
Net interest income - as reported | | | | $ | 155,304 | | | | | | | $ | 149,142 | | | | | | | $ | 115,201 | | | | | | | $ | 591,238 | | | | | | | $ | 433,150 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1. | | Average loan balances include non accrual loans. |
2. | | Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%. |
3. | | For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
| | |
| | | | | | | | | | | | | | |
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | | | | | |
Appendix A - GAAP to Non-GAAP Reconciliation | | | | | | | | | | | | |
(Dollars and share data in thousands) | | | | | | | | | | | | Twelve Months Ended |
| | 4Q12 | | 3Q12 | | 2Q12 | | 1Q12 | | 4Q11 | | 2012 | | 2011 |
Efficiency Ratio | | | | | | | | | | | | | | |
Other expense | | $ | 125,277 | | | $ | 122,910 | | | $ | 121,475 | | | $ | 120,355 | | | $ | 162,395 | | | $ | 490,017 | | | $ | 460,180 | |
Less: Merger related expenses | | | (1,054 | ) | | | (1,500 | ) | | | (3,318 | ) | | | (11,479 | ) | | | (12,211 | ) | | | (17,351 | ) | | | (14,991 | ) |
Loss on extinguishment of debt | | | (409 | ) | | | (5,451 | ) | | | 0 | | | | 0 | | | | (50,020 | ) | | | (5,860 | ) | | | (50,020 | ) |
Noninterest operating expense (numerator) | | $ | 123,814 | | | $ | 115,959 | | | $ | 118,157 | | | $ | 108,876 | | | $ | 100,164 | | | $ | 466,806 | | | $ | 395,169 | |
| | | | | | | | | | | | | | |
Taxable-equivalent net interest income | | $ | 159,332 | | | $ | 152,948 | | | | 156,416 | | | | 137,837 | | | | 118,780 | | | | 606,529 | | | | 447,800 | |
Other income | | | 43,772 | | | | 43,661 | | | | 39,811 | | | | 39,515 | | | | 71,347 | | | | 166,759 | | | | 182,668 | |
Less: Net realized gain on acquisition | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | (39,143 | ) | | | 0 | | | | (39,143 | ) |
Denominator | | $ | 203,104 | | | $ | 196,609 | | | $ | 196,227 | | | $ | 177,352 | | | $ | 150,984 | | | $ | 773,288 | | | $ | 591,325 | |
Efficiency ratio | | | 60.96 | % | | | 58.98 | % | | | 60.21 | % | | | 61.39 | % | | | 66.34 | % | | | 60.37 | % | | | 66.83 | % |
| | | | | | | | | | | | | | |
The efficiency ratio is a non-GAAP based financial measure. Management excludes merger-related expenses and certain other selected items when calculating this ratio, which is used to measure the relationship of operating expenses to revenues. |
| | | | | | | | | | | | | | |
Tangible Common Ratio | | | | | | | | | | | | | | |
End of period balance sheet data | | | | | | | | | | | | | | |
Shareholders' equity | | $ | 2,595,909 | | | $ | 2,584,682 | | | $ | 2,544,730 | | | $ | 2,512,584 | | | $ | 2,189,628 | | | $ | 2,595,909 | | | $ | 2,189,628 | |
Goodwill and other intangible assets (1) | | | (1,263,563 | ) | | | (1,263,361 | ) | | | (1,267,630 | ) | | | (1,268,582 | ) | | | (1,006,412 | ) | | | (1,263,563 | ) | | | (1,006,412 | ) |
Tangible common equity (numerator) | | $ | 1,332,346 | | | $ | 1,321,321 | | | $ | 1,277,100 | | | $ | 1,244,002 | | | $ | 1,183,216 | | | $ | 1,332,346 | | | $ | 1,183,216 | |
| | | | | | | | | | | | | | |
Assets | | $ | 18,037,667 | | | $ | 18,106,730 | | | $ | 18,040,009 | | | $ | 17,807,026 | | | $ | 14,974,789 | | | $ | 18,037,667 | | | $ | 14,974,789 | |
Goodwill and other intangible assets (1) | | | (1,263,563 | ) | | | (1,263,361 | ) | | | (1,267,630 | ) | | | (1,268,582 | ) | | | (1,047,112 | ) | | | (1,263,563 | ) | | | (1,047,112 | ) |
Tangible assets (denominator) | | $ | 16,774,104 | | | $ | 16,843,369 | | | $ | 16,772,379 | | | $ | 16,538,444 | | | $ | 13,927,677 | | | $ | 16,774,104 | | | $ | 13,927,677 | |
Tangible common ratio | | | 7.94 | % | | | 7.84 | % | | | 7.61 | % | | | 7.52 | % | | | 8.50 | % | | | 7.94 | % | | | 8.50 | % |
| | | | | | | | | | | | | | |
The tangible common ratio is a non-GAAP based financial measure using non-GAAP based amounts. The most directly comparable GAAP-based measure is the ratio of common shareholders’ equity to total assets. In order to calculate tangible common shareholders equity and assets, our management subtracts the intangible assets from both the common shareholders’ equity and total assets. Tangible common equity is then divided by the tangible assets to arrive at the ratio. Management uses the ratio to assess the strength of our capital position. |
| |
(1) Net of applicable deferred income taxes |
|
| | | | | | | | | | | | | | |
Susquehanna Bancshares, Inc. |
26 North Cedar Street |
Lititz, PA 17543 |
| | | | | | | | | | | | | | |
Appendix A - GAAP to Non-GAAP Reconciliation | | | | | | | | | | | |
(Dollars and share data in thousands) | | | | | | | | | | | | | | |
| | | | | | | | | | | | Twelve Months Ended |
Return on Average Tangible Equity | | 4Q12 | | 3Q12 | | 2Q12 | | 1Q12 | | 4Q11 | | 2012 | | 2011 |
Income statement data | | | | | | | | | | | | | | |
Net income | | $ | 43,174 | | | $ | 36,732 | | | $ | 37,793 | | | $ | 23,473 | | | $ | 19,129 | | | $ | 141,172 | | | $ | 54,905 | |
Amortization of intangibles, net of taxes at 35% | | | 2,127 | | | | 2,169 | | | | 2,211 | | | | 1,789 | | | | 1,489 | | | | 8,141 | | | | 5,658 | |
Net tangible income (numerator) | | $ | 45,301 | | | $ | 38,901 | | | $ | 40,004 | | | $ | 25,262 | | | $ | 20,618 | | | $ | 149,313 | | | $ | 60,563 | |
| | | | | | | | | | | | | | |
Average balance sheet data | | | | | | | | | | | | | | |
Shareholders' equity | | $ | 2,597,254 | | | $ | 2,562,092 | | | $ | 2,537,250 | | | $ | 2,348,326 | | | $ | 2,217,036 | | | $ | 2,511,604 | | | $ | 2,055,717 | |
Goodwill and other intangible assets | | | (1,311,192 | ) | | | (1,315,071 | ) | | | (1,320,658 | ) | | | (1,132,344 | ) | | | (1,045,580 | ) | | | (1,270,053 | ) | | | (1,048,014 | ) |
Tangible common equity (denominator) | | $ | 1,286,062 | | | $ | 1,247,021 | | | $ | 1,216,592 | | | $ | 1,215,982 | | | $ | 1,171,456 | | | $ | 1,241,551 | | | $ | 1,007,703 | |
| | | | | | | | | | | | | | |
Return on equity (GAAP basis) | | | 6.61 | % | | | 5.70 | % | | | 5.99 | % | | | 4.02 | % | | | 3.42 | % | | | 5.62 | % | | | 2.67 | % |
Effect of goodwill and other intangibles | | | 7.40 | % | | | 6.71 | % | | | 7.24 | % | | | 4.34 | % | | | 3.56 | % | | | 6.41 | % | | | 3.34 | % |
Return on average tangible equity | | | 14.01 | % | | | 12.41 | % | | | 13.23 | % | | | 8.36 | % | | | 6.98 | % | | | 12.03 | % | | | 6.01 | % |
| | | | | | | | | | | | | | |
Return on average tangible equity is a non-GAAP based financial measure calculated using non-GAAP based amounts. The most directly comparable GAAP-based measure is return on average equity. We calculate return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from our calculation of return on average equity. Management uses the return on average tangible equity in order to review our core operating results. Management believes that this is a better measure of our performance. In addition, this is consistent with the treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios. |
| | | | | | | | | | | | | | |
Tangible Book Value per Common Share | | | | | | | | | | | | | | |
End of period balance sheet data | | | | | | | | | | | | | | |
Shareholders' equity | | $ | 2,595,909 | | | $ | 2,584,682 | | | $ | 2,544,730 | | | $ | 2,512,584 | | | $ | 2,189,628 | | | $ | 2,595,909 | | | $ | 2,189,628 | |
Goodwill and other intangible assets | | | (1,311,691 | ) | | | (1,313,310 | ) | | | (1,317,036 | ) | | | (1,318,554 | ) | | | (1,047,112 | ) | | | (1,311,691 | ) | | | (1,047,112 | ) |
Tangible common equity (numerator) | | $ | 1,284,218 | | | $ | 1,271,372 | | | $ | 1,227,694 | | | $ | 1,194,030 | | | $ | 1,142,516 | | | $ | 1,284,218 | | | $ | 1,142,516 | |
| | | | | | | | | | | | | | |
Common shares outstanding (denominator) | | | 186,554 | | | | 186,465 | | | | 186,221 | | | | 187,856 | | | | 156,867 | | | | 186,554 | | | | 156,867 | |
| | | | | | | | | | | | | | |
Tangible book value per common share | | $ | 6.88 | | | $ | 6.82 | | | $ | 6.59 | | | $ | 6.36 | | | $ | 7.28 | | | $ | 6.88 | | | $ | 7.28 | |
| | | | | | | | | | | | | | |
|
Tangible book value per share is a non-GAAP based financial measure calculated using non-GAAP based amounts. The most directly comparable GAAP based measure is book value per share. In order to calculate tangible book value per share, we divide tangible common equity, which is a non-GAAP based measure calculated as common shareholders’ equity less intangible assets, by the number of shares of common stock outstanding. In contrast, book value per share is calculated by dividing total common shareholders’ equity by the number of shares of common stock outstanding. Management uses tangible book value per share to assess our capital position and ratios. |
CONTACT:
Susquehanna Bancshares, Inc.
INVESTOR RELATIONS:
Carl D. Lundblad, Senior Vice President
717-625-6305
or
MEDIA RELATIONS:
Stephen Trapnell, Director of Corporate Communications
717-625-6548