Exhibit 99.1
Palmetto Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
(dollars in thousands, except per share data)
(unaudited)
December 31, | ||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | 2013 vs. 2012 | |||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | % Change | |||||||||||||||||||
Cash and cash equivalents | $ | 38,178 | $ | 55,743 | $ | 62,668 | $ | 60,762 | $ | 101,385 | (62.3 | )% | ||||||||||||
Investment securities available for sale, at fair value | 214,383 | 227,079 | 246,501 | 265,798 | 264,502 | (18.9 | ) | |||||||||||||||||
Trading account assets | 5,118 | 5,027 | - | - | - | n/m | ||||||||||||||||||
Mortgage loans held for sale | 1,722 | 1,865 | 2,934 | 7,056 | 6,114 | (71.8 | ) | |||||||||||||||||
Other loans held for sale | - | - | - | 776 | 776 | (100.0 | ) | |||||||||||||||||
Loans, gross | 767,513 | 756,814 | 741,355 | 730,764 | 738,282 | 4.0 | ||||||||||||||||||
Less: allowance for loan losses | (16,485 | ) | (16,706 | ) | (17,218 | ) | (17,470 | ) | (17,825 | ) | (7.5 | ) | ||||||||||||
Loans, net | 751,028 | 740,108 | 724,137 | 713,294 | 720,457 | 4.2 | ||||||||||||||||||
Foreclosed real estate | 7,502 | 7,928 | 8,296 | 11,057 | 10,911 | (31.2 | ) | |||||||||||||||||
Deferred tax asset, net | 22,087 | 22,197 | 1,273 | - | - | n/m | ||||||||||||||||||
Bank-owned life insurance | 11,617 | 1,571 | 1,571 | 1,571 | 1,571 | n/m | ||||||||||||||||||
Other assets | 38,594 | 38,379 | 37,842 | 38,977 | 39,740 | (2.9 | ) | |||||||||||||||||
Total assets | $ | 1,090,229 | $ | 1,099,897 | $ | 1,085,222 | $ | 1,099,291 | $ | 1,145,456 | (4.8 | )% | ||||||||||||
Noninterest bearing deposits | $ | 178,075 | $ | 187,150 | $ | 188,197 | $ | 180,290 | $ | 179,695 | (0.9 | )% | ||||||||||||
Interest bearing deposits | 729,285 | 757,662 | 770,644 | 791,906 | 843,547 | (13.5 | ) | |||||||||||||||||
Total deposits | 907,360 | 944,812 | 958,841 | 972,196 | 1,023,242 | (11.3 | ) | |||||||||||||||||
Retail repurchase agreements | 18,175 | 24,640 | 18,312 | 17,706 | 15,357 | 18.3 | ||||||||||||||||||
FHLB advances | 35,000 | - | - | - | - | n/m | ||||||||||||||||||
Other liabilities | 5,877 | 9,499 | 8,953 | 9,580 | 8,477 | (30.7 | ) | |||||||||||||||||
Total liabilities | 966,412 | 978,951 | 986,106 | 999,482 | 1,047,076 | (7.7 | ) | |||||||||||||||||
Shareholders' equity | 123,817 | 120,946 | 99,116 | 99,809 | 98,380 | 25.9 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,090,229 | $ | 1,099,897 | $ | 1,085,222 | $ | 1,099,291 | $ | 1,145,456 | (4.8 | )% | ||||||||||||
Quarterly Average Balances | ||||||||||||||||||||||||
Loans(1) | $ | 766,454 | $ | 749,201 | $ | 740,643 | $ | 739,962 | $ | 743,065 | 3.1 | % | ||||||||||||
Investment securities | 220,412 | 243,955 | 258,200 | 272,853 | 281,929 | (21.8 | ) | |||||||||||||||||
Trading account assets | 5,067 | 652 | - | - | - | n/m | ||||||||||||||||||
Total assets | 1,096,881 | 1,080,900 | 1,086,965 | 1,117,090 | 1,143,855 | (4.1 | ) | |||||||||||||||||
Noninterest-bearing deposits | 188,603 | 188,477 | 185,199 | 177,974 | 184,059 | 2.5 | ||||||||||||||||||
Interest-bearing deposits | 751,974 | 763,746 | 774,525 | 814,146 | 835,791 | (10.0 | ) | |||||||||||||||||
Retail repurchase agreements | 22,638 | 19,521 | 16,789 | 16,643 | 16,494 | 37.2 | ||||||||||||||||||
FHLB advances and other borrowings | 2,271 | 24 | 9 | 14 | 36 | n/m | ||||||||||||||||||
Shareholders' equity | 123,299 | 100,795 | 101,613 | 99,729 | 97,079 | 27.0 | ||||||||||||||||||
Other Data and Ratios | ||||||||||||||||||||||||
% of loans past due | 0.42 | % | 0.63 | % | 0.40 | % | 0.85 | % | 1.03 | % | (59.2 | ) | ||||||||||||
Nonperforming loans | $ | 15,108 | $ | 14,735 | $ | 16,752 | $ | 17,106 | $ | 15,848 | (4.7 | ) | ||||||||||||
Nonperforming assets | 22,654 | 22,706 | 25,081 | 28,194 | 26,839 | (15.6 | ) | |||||||||||||||||
90-days past due and still accruing interest | - | 1,723 | - | - | - | n/m | ||||||||||||||||||
ALL as % of loans held for investment | 2.15 | % | 2.21 | % | 2.32 | % | 2.39 | % | 2.41 | % | (10.8 | ) | ||||||||||||
Net charge-offs (quarterly) | $ | 2,021 | $ | 1,157 | $ | 922 | $ | 705 | $ | 1,838 | 9.9 | |||||||||||||
Net charge-offs to average loans (annualized) | 1.05 | % | 0.61 | % | 0.50 | % | 0.39 | % | 1.00 | % | 4.7 | |||||||||||||
Outstanding common shares | 12,784,605 | 12,783,019 | 12,772,344 | 12,762,452 | 12,754,045 | 0.2 | ||||||||||||||||||
Book value per common share | $ | 9.68 | $ | 9.46 | $ | 7.76 | $ | 7.82 | $ | 7.71 | 25.6 | |||||||||||||
Closing market price per common share | 12.96 | 13.04 | 13.00 | 11.60 | 8.33 | 55.6 | ||||||||||||||||||
Tier 1 risk-based capital (consolidated) | 14.24 | % | 14.26 | % | 13.67 | % | 13.48 | % | 13.16 | % | 8.2 | |||||||||||||
Total risk-based capital (consolidated) | 15.49 | 15.52 | 14.93 | 14.74 | 14.42 | 7.4 | ||||||||||||||||||
Tier 1 leverage ratio (consolidated) | 11.03 | 10.95 | 10.06 | 9.63 | 9.18 | 20.2 | ||||||||||||||||||
Full Time Equivalent Employees - including contractors | 305.0 | 306.0 | 314.0 | 324.0 | 324.0 | (5.9 | ) |
(1) Includes Mortgage and Other Loans held for sale. |
Palmetto Bancshares, Inc. and Subsidiary
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
For the Three Months Ended | ||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | December 31, 2013 vs. 2012 % Change | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Interest earned on cash and cash equivalents | $ | 17 | $ | 24 | $ | 24 | $ | 35 | $ | 37 | (54.1 | )% | ||||||||||||
Dividends received on FHLB stock | 10 | 8 | 21 | - | 12 | (16.7 | ) | |||||||||||||||||
Interest earned on trading account assets | 33 | 5 | - | - | - | n/m | ||||||||||||||||||
Interest earned on investment securities available for sale | 1,033 | 1,010 | 964 | 1,010 | 1,006 | 2.7 | ||||||||||||||||||
Interest and fees earned on loans | 9,330 | 9,476 | 9,719 | 9,819 | 9,812 | (4.9 | ) | |||||||||||||||||
Total interest income | 10,423 | 10,523 | 10,728 | 10,864 | 10,867 | (4.1 | ) | |||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Interest expense on deposits | 385 | 475 | 502 | 895 | 1,178 | (67.3 | ) | |||||||||||||||||
Interest expense on retail repurchase agreements | 1 | - | 1 | - | - | n/m | ||||||||||||||||||
Interest paid on FHLB advances | 1 | - | - | - | - | n/m | ||||||||||||||||||
Total interest expense | 387 | 475 | 503 | 895 | 1,178 | (67.1 | ) | |||||||||||||||||
Net interest income | 10,036 | 10,048 | 10,225 | 9,969 | 9,689 | 3.6 | ||||||||||||||||||
Provision for loan losses | 1,800 | 645 | 670 | 350 | 1,325 | 35.8 | ||||||||||||||||||
Net interest income after provision for loan losses | 8,236 | 9,403 | 9,555 | 9,619 | 8,364 | (1.5 | ) | |||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Service charges on deposit accounts, net | 1,883 | 1,862 | 1,603 | 1,554 | 1,713 | 9.9 | ||||||||||||||||||
Fees for trust and investment management and brokerage services | 151 | 214 | 905 | 769 | 746 | (79.8 | ) | |||||||||||||||||
Mortgage-banking | 498 | 375 | 564 | 571 | 797 | (37.5 | ) | |||||||||||||||||
Debit card and automatic teller machine, net | 652 | 648 | 600 | 499 | 565 | 15.4 | ||||||||||||||||||
Bankcard services | 67 | 70 | 64 | 60 | 64 | 4.7 | ||||||||||||||||||
Investment securities gains (losses), net | 23 | (44 | ) | 331 | - | 635 | (96.4 | ) | ||||||||||||||||
Trading asset income | 134 | 36 | - | - | - | n/m | ||||||||||||||||||
Other | 167 | 118 | 170 | 292 | 282 | (40.8 | ) | |||||||||||||||||
Total noninterest income | 3,575 | 3,279 | 4,237 | 3,745 | 4,802 | (25.6 | ) | |||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||
Salaries and other personnel | 4,837 | 4,862 | 5,310 | 5,098 | 4,940 | (2.1 | ) | |||||||||||||||||
Occupancy and equipment | 2,037 | 2,004 | 1,965 | 1,967 | 1,913 | 6.5 | ||||||||||||||||||
Professional services | 609 | 491 | 556 | 427 | 406 | 50.0 | ||||||||||||||||||
FDIC deposit insurance assessment | 356 | 355 | 358 | 370 | 381 | (6.6 | ) | |||||||||||||||||
Marketing | 304 | 267 | 338 | 142 | 400 | (24.0 | ) | |||||||||||||||||
Foreclosed real estate writedowns and expenses | 468 | 173 | 2,280 | 452 | 258 | 81.4 | ||||||||||||||||||
Loss (gain) on other loans held for sale | - | - | (326 | ) | - | 1,122 | (100.0 | ) | ||||||||||||||||
Loan workout expenses | 204 | 410 | 240 | 212 | 651 | (68.7 | ) | |||||||||||||||||
Other | 1,397 | 1,273 | 1,190 | 1,707 | 1,256 | 11.2 | ||||||||||||||||||
Total noninterest expense | 10,212 | 9,835 | 11,911 | 10,375 | 11,327 | (9.8 | ) | |||||||||||||||||
Income before provision (benefit) for income taxes | 1,599 | 2,847 | 1,881 | 2,989 | 1,839 | (13.1 | ) | |||||||||||||||||
Provision (benefit) for income taxes | (224 | ) | (19,386 | ) | 382 | 813 | (871 | ) | n/m | |||||||||||||||
Net income | $ | 1,823 | $ | 22,233 | $ | 1,499 | $ | 2,176 | $ | 2,710 | (32.7 | )% | ||||||||||||
Earnings per Share and Results of Operations | ||||||||||||||||||||||||
Basic net income per common share | $ | 0.14 | $ | 1.74 | $ | 0.12 | $ | 0.17 | $ | 0.21 | (33.3 | )% | ||||||||||||
Diluted net income per common share | 0.14 | 1.74 | 0.12 | 0.17 | 0.21 | (33.3 | ) | |||||||||||||||||
Weighted average shares outstanding, diluted | 12,689,245 | 12,674,743 | 12,671,929 | 12,650,766 | 12,640,991 | 0.4 | ||||||||||||||||||
Efficiency ratio | 75.0 | % | 73.8 | % | 82.4 | % | 75.7 | % | 78.2 | % | (4.0 | ) | ||||||||||||
Return on average assets | 0.66 | 8.16 | 0.55 | 0.79 | 0.94 | (29.9 | ) | |||||||||||||||||
Return on average equity | 5.87 | 87.51 | 5.92 | 8.85 | 11.11 | (47.2 | ) | |||||||||||||||||
Yields and Rates | ||||||||||||||||||||||||
Loans(1) | 4.83 | % | 5.02 | % | 5.26 | % | 5.38 | % | 5.25 | % | (8.0 | ) | ||||||||||||
Investment securities | 1.87 | 1.66 | 1.49 | 1.48 | 1.43 | 30.8 | ||||||||||||||||||
Trading account assets | 2.58 | 3.04 | - | - | - | n/m | ||||||||||||||||||
Transaction deposits | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | - | ||||||||||||||||||
Money market deposits | 0.03 | 0.02 | 0.02 | 0.02 | 0.02 | 50.0 | ||||||||||||||||||
Savings deposits | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | (50.0 | ) | |||||||||||||||||
Time deposits | 0.64 | 0.75 | 0.77 | 1.17 | 1.35 | (52.6 | ) | |||||||||||||||||
Retail repurchase agreements | 0.02 | - | 0.02 | - | - | n/m | ||||||||||||||||||
FHLB advances and other borrowings | 0.17 | - | - | - | - | n/m | ||||||||||||||||||
Net interest margin | 3.86 | 3.83 | 3.92 | 3.77 | 3.50 | 10.3 |
(1) Includes Mortgage and Other Loans held for sale. |
Palmetto Bancshares, Inc. and Subsidiary
Consolidated Statements of Income (Loss)
(dollars in thousands, except per share data)
(unaudited)
For the Years Ended December 31, | 2013 vs. 2012 | |||||||||||
2013 | 2012 | % Change | ||||||||||
Interest income | ||||||||||||
Interest earned on cash and cash equivalents | $ | 100 | $ | 209 | (52.2 | )% | ||||||
Dividends received on FHLB stock | 39 | 47 | (17.0 | ) | ||||||||
Interest on trading account assets | 38 | - | n/m | |||||||||
Interest earned on investment securities available for sale | 4,017 | 5,059 | (20.6 | ) | ||||||||
Interest and fees earned on loans | 38,344 | 40,075 | (4.3 | ) | ||||||||
Total interest income | 42,538 | 45,390 | (6.3 | ) | ||||||||
Interest expense | ||||||||||||
Interest expense on deposits | 2,257 | 5,136 | (56.1 | ) | ||||||||
Interest expense on retail repurchase agreements | 2 | 2 | - | |||||||||
Interest paid on FHLB advances | 1 | - | n/m | |||||||||
Total interest expense | 2,260 | 5,138 | (56.0 | ) | ||||||||
Net interest income | 40,278 | 40,252 | 0.1 | |||||||||
Provision for loan losses | 3,465 | 13,075 | (73.5 | ) | ||||||||
Net interest income after provision for loan losses | 36,813 | 27,177 | 35.5 | |||||||||
Noninterest income | ||||||||||||
Service charges on deposit accounts, net | 6,902 | 6,691 | 3.2 | |||||||||
Fees for trust and investment management and brokerage services | 2,039 | 3,092 | (34.1 | ) | ||||||||
Mortgage-banking | 2,008 | 3,139 | (36.0 | ) | ||||||||
Debit card and automatic teller machine, net | 2,400 | 2,171 | 10.5 | |||||||||
Bankcard services | 261 | 247 | 5.7 | |||||||||
Investment securities gains, net | 310 | 10,494 | (97.0 | ) | ||||||||
Trading asset income | 170 | - | n/m | |||||||||
Gain on sale of branches | - | 568 | (100.0 | ) | ||||||||
Other | 746 | 628 | 18.8 | |||||||||
Total noninterest income | 14,836 | 27,030 | (45.1 | ) | ||||||||
Noninterest expense | ||||||||||||
Salaries and other personnel | 20,107 | 21,088 | (4.7 | ) | ||||||||
Occupancy and equipment | 7,973 | 7,833 | 1.8 | |||||||||
Professional services | 2,083 | 1,715 | 21.5 | |||||||||
FDIC deposit insurance assessment | 1,439 | 1,861 | (22.7 | ) | ||||||||
Marketing | 1,051 | 1,384 | (24.1 | ) | ||||||||
Foreclosed real estate writedowns and expenses | 3,373 | 9,285 | (63.7 | ) | ||||||||
Loss (gain) on other loans held for sale | (326 | ) | 3,660 | (108.9 | ) | |||||||
Loan workout expenses | 1,066 | 1,273 | (16.3 | ) | ||||||||
Other | 5,567 | 5,251 | 6.0 | |||||||||
Total noninterest expense | 42,333 | 53,350 | (20.7 | ) | ||||||||
Income before provision (benefit) for income taxes | 9,316 | 857 | n/m | |||||||||
Provision (benefit) for income taxes | (18,415 | ) | 2,721 | n/m | ||||||||
Net income (loss) | $ | 27,731 | $ | (1,864 | ) | n/m | % | |||||
Earnings per Share and Results of Operations | ||||||||||||
Basic net income (loss) per common share | $ | 2.17 | $ | (0.15 | ) | n/m | % | |||||
Diluted net income (loss) per common share | 2.17 | (0.15 | ) | n/m | ||||||||
Weighted average shares oustanding, diluted | 12,658,752 | 12,639,379 | 0.2 | |||||||||
Efficiency ratio | 76.8 | % | 79.3 | % | (3.1 | ) | ||||||
Return on average assets | 2.53 | (0.16 | ) | n/m | ||||||||
Return on average equity | 26.06 | (1.86 | ) | n/m | ||||||||
Yields and Rates | ||||||||||||
Loans(1) | 5.12 | % | 5.29 | % | (3.2 | ) | ||||||
Investment securities | 1.62 | 1.88 | (13.8 | ) | ||||||||
Trading account assets | 2.64 | - | n/m | |||||||||
Transaction deposits | 0.01 | 0.01 | - | |||||||||
Money market deposits | 0.02 | 0.04 | (50.0 | ) | ||||||||
Savings deposits | 0.01 | 0.01 | - | |||||||||
Time deposits | 0.85 | 1.37 | (38.0 | ) | ||||||||
Retail repurchase agreements | 0.01 | 0.01 | - | |||||||||
FHLB advances and other borrowings | 0.17 | - | n/m | |||||||||
Net interest margin | 3.85 | 3.58 | 7.5 |
(1) Includes Mortgage and Other Loans held for sale. |