Attached files
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| 8-K - SUSQUEHANNA BANCSHARES, INC. 8-K - SUSQUEHANNA BANCSHARES INC | a6808935.htm |
Exhibit 99.1
Susquehanna Bancshares, Inc. Announces Second Quarter 2011 Results
LITITZ, Pa.--(BUSINESS WIRE)--July 27, 2011--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced net income applicable to common shareholders for the second quarter ended June 30, 2011 was $11.1 million, or $0.09 per diluted share, compared to a net loss of ($1.4) million for the second quarter of 2010, or ($0.01) per diluted share. Net income for the first six months of 2011 was $20.8 million, or $0.16 per diluted share, compared to net income of $2.0 million or $0.02 per diluted share for the first six months of 2010. Preferred stock dividends and accretion in the second quarter of 2010 included a $4.8 million after-tax charge related to the redemption of $200 million in preferred stock from the U.S. Treasury Capital Purchase Program in April 2010.
Second Quarter Financial Results:
-
Net loans and leases decreased 2% to $9.6 billion from June 30, 2010.
- Consumer loans increased 21% from June 30, 2010.
- Real estate secured-residential loans increased 2% from June 30, 2010.
- Real estate secured-commercial loans decreased 1% from June 30, 2010.
- Leases decreased 2% from June 30, 2010.
- Commercial loans decreased 5% from June 30, 2010.
- Real estate-construction loans decreased 18% from June 30, 2010.
-
Total deposits increased 3% to $9.4 billion from June 30, 2010.
- Non-interest bearing demand deposits increased 8% from June 30, 2010.
- Savings deposits increased 4% from June 30, 2010.
- Interest-bearing demand deposits increased 3% from June 30, 2010.
- Time deposits were flat compared to June 30, 2010.
- Net interest margin for the quarter decreased 7 basis points to 3.62% compared to 3.69% for the second quarter of 2010.
- Net charge-offs as a percentage of average loans and leases for the second quarter of 2011 were 1.33% compared to 1.46% for the second quarter of 2010. Non-performing assets as a percentage of loans, leases and foreclosed real estate were 2.26% at June 30, 2011 compared to 2.60% at June 30, 2010. The provision for loan and lease losses for the second quarter of 2011 was $28 million, compared to $43 million for the second quarter of 2010.
- Common equity was $2.0 billion, or $15.55 per common share, at June 30, 2011 compared to $2.0 billion, or $15.38 per common share, at June 30, 2010.
- Susquehanna’s regulatory capital ratios are as follows:
|
At June 30, 2011 |
Well-Capitalized Threshold |
|||
| Tangible Common Ratio(1) | 7.75% | N/A | ||
| Tier 1 Common Ratio | 9.65% | N/A | ||
| Leverage Ratio | 10.37% | 5.0 % | ||
| Tier 1 Capital Ratio | 12.68% | 6.0 % | ||
| Total Risk-Based Capital Ratio | 14.75% | 10.0 % | ||
- Return on average assets and average tangible equity(2) for the second quarter ended June 30, 2011 finished at 0.32% and 5.24%, respectively. This compared to results of 0.16% and 2.57% for the same measurements, respectively, for the second quarter of 2010.
(1)Includes deferred tax liability associated with intangibles of $41.0 million.
(2)A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures – Return on Average Tangible Equity."
Linked Quarter Results (Second Quarter 2011 vs. First Quarter 2011)
-
Net loans and leases were flat at $9.6 billion compared to March 31,
2011.
- Consumer loans increased 6% from March 31, 2011.
- Leases increased 2% from March 31, 2011.
- Real estate secured–residential loans increased 1% from March 31, 2011.
- Real estate secured–commercial loans increased 1% from March 31, 2011.
- Commercial loans were flat compared to March 31, 2011.
- Real estate construction loans decreased 6% from March 31, 2011.
-
Total deposits increased 1% to $9.4 billion from March 31, 2011.
- Time deposits increased 4% from March 31, 2011.
- Non-interest bearing demand deposits increased 3% from March 31, 2011.
- Savings deposits increased 1% from March 31, 2011.
- Interest-bearing demand deposits decreased 2% from March 31, 2011.
Net interest margin decreased 1 basis point to 3.62% compared to 3.63% for the first quarter of 2011.
Net charge-offs as a percentage of average loans and leases decreased 9 basis points to 1.33% compared to 1.42% for the first quarter of 2011. Non-performing assets as a percentage of loans, leases and foreclosed real estate decreased 23 basis points to 2.26% at June 30, 2011.
The provision for loan losses decreased $7.0 million or 20% primarily due to declines in non-accrual loans of 10%, restructured loans of 21%, criticized loans of 10% and 30 to 89 days past due loans of 49%.
“Second-quarter results showed steady improvement in almost all measures of credit quality. As a result, our provision for loan losses decreased by 20% from the previous quarter,” said William J. Reuter, Susquehanna Chairman and Chief Executive Officer. “This also marked the first quarter since second-quarter 2009 that net loans increased. Although modest, this increase makes us cautiously optimistic that economic activity and loan growth will begin to improve in the second half of the year.”
Susquehanna will broadcast its second quarter 2011 results conference call over the Internet on July 28, 2011 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of second quarter 2011 results. The discussion may also include forward-looking information and financial goals. 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 second 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 approximately $14 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 220 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 $6.4 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 on 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. These statements are subject to certain risks and uncertainties including risks relating to changes in the general economic climate, loan growth and the other risks set forth 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. | |||||||||
| P.O. Box 1000 | |||||||||
| Lititz, PA 17543 | |||||||||
| SUMMARY FINANCIAL INFORMATION | |||||||||
| (Dollars in thousands, except per common share data) | |||||||||
| Six Months | |||||||||
| 2Q11 | 2Q10 | 2011 | 2010 | ||||||
| Balance Sheet (EOP) | |||||||||
| Investments | $2,623,747 | $2,149,118 | $2,623,747 | $2,149,118 | |||||
| Loans and leases | 9,636,187 | 9,787,056 | 9,636,187 | 9,787,056 | |||||
| Allowance for loan & lease losses (ALLL) | 189,292 | 185,795 | 189,292 | 185,795 | |||||
| Total assets | 14,157,744 | 13,891,533 | 14,157,744 | 13,891,533 | |||||
| Deposits | 9,402,515 | 9,169,947 | 9,402,515 | 9,169,947 | |||||
| Short-term borrowings | 635,183 | 619,439 | 635,183 | 619,439 | |||||
| Federal Home Loan Bank borrowings | 1,115,517 | 967,674 | 1,115,517 | 967,674 | |||||
| Other long-term debt | 683,867 | 721,607 | 683,867 | 721,607 | |||||
| Shareholders' equity | 2,022,902 | 2,092,451 | 2,022,902 | 2,092,451 | |||||
| Stated book value per common share | 15.55 | 15.38 | 15.55 | 15.38 | |||||
| Tangible book value per common share | 7.50 | 7.23 | 7.50 | 7.23 | |||||
| Average Balance Sheet | |||||||||
| Investments | $2,473,101 | $1,909,824 | $2,475,425 | $1,876,286 | |||||
| Loans and leases | 9,620,320 | 9,880,151 | 9,602,309 | 9,936,679 | |||||
| Total earning assets | 12,171,868 | 11,885,934 | 12,156,630 | 11,901,455 | |||||
| Total assets | 14,035,708 | 13,827,455 | 14,000,922 | 13,815,799 | |||||
| Deposits | 9,341,761 | 9,214,041 | 9,292,581 | 9,141,779 | |||||
| Other short-term borrowings | 667,856 | 503,082 | 707,588 | 659,370 | |||||
| FHLB borrowings | 1,115,754 | 1,024,326 | 1,108,100 | 1,000,170 | |||||
| Other long-term debt | 690,573 | 726,994 | 695,522 | 710,689 | |||||
| Shareholders' equity | 2,000,395 | 2,137,674 | 1,992,024 | 2,082,539 | |||||
| Income Statement | |||||||||
| Net interest income | $106,086 | $106,231 | $211,109 | $214,522 | |||||
| Provision for loan and lease losses | 28,000 | 43,000 | 63,000 | 88,000 | |||||
| Noninterest income | 37,054 | 38,271 | 74,521 | 76,953 | |||||
| Noninterest expense | 101,157 | 96,163 | 197,039 | 190,467 | |||||
| Income before taxes | 13,983 | 5,339 | 25,591 | 13,008 | |||||
| Provision for (benefit from) income taxes | 2,928 | (52 | ) | 4,775 | 114 | ||||
| Net income | 11,055 | 5,391 | 20,816 | 12,894 | |||||
| Net income (loss) applicable to common shareholders | 11,055 | (1,363 | ) | 20,816 | 1,952 | ||||
| Basic earnings per common share | 0.09 | (0.01 | ) | 0.16 | 0.02 | ||||
| Diluted earnings per common share | 0.09 | (0.01 | ) | 0.16 | 0.02 | ||||
| Cash dividends paid per common share | 0.02 | 0.01 | 0.03 | 0.02 | |||||
| Asset Quality | |||||||||
| Net charge-offs (NCOs) | $31,941 | $36,024 | $65,542 | $74,573 | |||||
| Nonaccrual loans & leases | $190,733 | $237,378 | $190,733 | $237,378 | |||||
| Foreclosed real estate | 27,953 | 17,379 | 27,953 | 17,379 | |||||
| Total nonperforming assets (NPAs) | $218,686 | $254,757 | $218,686 | $254,757 | |||||
| Restructured loans | $62,143 | $79,595 | $62,143 | $79,595 | |||||
| Loans & leases 90 days past due | 18,268 | 13,039 | 18,268 | 13,039 | |||||
| Susquehanna Bancshares, Inc. | ||||||||
| P.O. Box 1000 | ||||||||
| Lititz, PA 17543 | ||||||||
| Six Months | ||||||||
| RATIO ANALYSIS | 2Q11 | 2Q10 | 2011 | 2010 | ||||
| Credit Quality | ||||||||
| NCOs / Average loans & leases | 1.33% | 1.46% | 1.38% | 1.51% | ||||
| NPAs / Loans & leases + foreclosed real estate | 2.26% | 2.60% | 2.26% | 2.60% | ||||
| ALLL / Nonaccrual loans & leases | 99.24% | 78.27% | 99.24% | 78.27% | ||||
| ALLL / Total loans & leases | 1.96% | 1.90% | 1.96% | 1.90% | ||||
| Capital Adequacy | ||||||||
| Equity / Assets | 14.29% | 15.06% | 14.29% | 15.06% | ||||
| Long-term debt / Equity | 33.81% | 34.49% | 33.81% | 34.49% | ||||
| Profitability | ||||||||
| Return on average assets | 0.32% | 0.16% | 0.30% | 0.19% | ||||
| Return on average equity | 2.22% | 1.01% | 2.11% | 1.25% | ||||
| Return on average tangible equity (1) | 5.24% | 2.57% | 5.05% | 3.15% | ||||
| Net interest margin | 3.62% | 3.69% | 3.62% | 3.75% | ||||
| Efficiency ratio | 68.90% | 65.09% | 67.28% | 63.89% | ||||
| (1)Supplemental Reporting of Non-GAAP-based Financial Measures-Return on average tangible equity | ||||||||
| Return on average tangible equity is a non-GAAP-based financial measure calculated using non-GAAP-based amounts. The most directly comparable measure is return on average equity which is calculated using GAAP-based amounts. 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. A reconciliation of return on average equity to return on average tangible equity is set forth below. |
| 2Q11 | 2Q10 | 2011 | 2010 | |||||
| Return on average equity (GAAP basis) | 2.22% | 1.01% | 2.11% | 1.25% | ||||
|
Effect of excluding average intangible assets and related amortization |
3.02% | 1.56% | 2.94% | 1.90% | ||||
| Return on average tangible equity | 5.24% | 2.57% | 5.05% | 3.15% | ||||
| Susquehanna Bancshares, Inc. | |||||||||
| P.O. Box 1000 | |||||||||
| Lititz, PA 17543 | |||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||
| June 30, | December 31, | June 30, | |||||||
| 2011 | 2010 | 2010 | |||||||
| (in thousands, except share data) | |||||||||
| Assets | |||||||||
| Cash and due from banks | $211,953 | $200,646 | $200,520 | ||||||
| Unrestricted short-term investments | 29,135 | 52,252 | 120,021 | ||||||
| Cash and cash equivalents | 241,088 | 252,898 | 320,541 | ||||||
|
Interest-bearing deposits held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities |
4,946 | 7,260 | 6,062 | ||||||
| Restricted short-term investments | 48,660 | 34,435 | 100 | ||||||
| Securities available for sale | 2,615,203 | 2,408,943 | 2,140,318 | ||||||
|
Securities held to maturity (fair values approximate $8,544, $8,668, and $8,800 |
8,544 | 8,668 | 8,800 | ||||||
| Loans and leases, net of unearned income | 9,431,453 | 9,417,801 | 9,555,737 | ||||||
|
Loans held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities |
204,734 | 215,396 | 231,319 | ||||||
| Less: Allowance for loan and lease losses | 189,292 | 191,834 | 185,795 | ||||||
| Net loans and leases | 9,446,895 | 9,441,363 | 9,601,261 | ||||||
| Premises and equipment, net | 165,161 | 165,557 | 163,183 | ||||||
| Other real estate and foreclosed assets | 29,426 | 19,962 | 17,379 | ||||||
| Accrued income receivable | 35,084 | 36,121 | 35,142 | ||||||
| Bank-owned life insurance | 358,967 | 359,579 | 352,010 | ||||||
| Goodwill | 1,018,031 | 1,018,031 | 1,018,031 | ||||||
| Intangible assets with finite lives | 29,779 | 34,076 | 38,770 | ||||||
| Other assets | 155,960 | 167,192 | 189,936 | ||||||
| Total assets | $14,157,744 | $13,954,085 | $13,891,533 | ||||||
| Liabilities and Shareholders' Equity | |||||||||
| Deposits: | |||||||||
| Demand | $1,421,947 | $1,372,235 | $1,321,411 | ||||||
| Interest-bearing demand | 3,598,052 | 3,646,714 | 3,481,397 | ||||||
| Savings | 807,117 | 767,852 | 778,600 | ||||||
| Time | 2,052,626 | 2,168,503 | 2,390,652 | ||||||
| Time of $100 or more | 1,522,773 | 1,235,903 | 1,197,887 | ||||||
| Total deposits | 9,402,515 | 9,191,207 | 9,169,947 | ||||||
| Federal Home Loan Bank short-term borrowings | 400,000 | 300,000 | 0 | ||||||
| Other short-term borrowings | 635,183 | 770,623 | 619,439 | ||||||
| Federal Home Loan Bank long-term borrowings | 715,517 | 801,620 | 967,674 | ||||||
| Other long-term debt | 176,034 | 176,038 | 176,042 | ||||||
| Junior subordinated debentures | 323,125 | 322,880 | 322,605 | ||||||
|
Long-term debt of consolidated variable interest entities for which creditors do not have recourse to Susquehanna's general credit |
184,708 | 207,036 | 222,960 | ||||||
| Accrued interest, taxes, and expenses payable | 48,343 | 46,449 | 49,902 | ||||||
| Deferred taxes | 41,020 | 33,729 | 56,783 | ||||||
| Other liabilities | 208,397 | 119,701 | 213,730 | ||||||
| Total liabilities | 12,134,842 | 11,969,283 | 11,799,082 | ||||||
| Shareholders' equity: | |||||||||
| Preferred stock, $1,000 liquidation value, 5,000,000 shares authorized. | |||||||||
|
Outstanding: 0 at June 30, 2011 and December 31, 2010 and 100,000 at June 30, 2010 |
0 | 0 | 97,745 | ||||||
| Common stock, $2.00 par value, 400,000,000 shares authorized. | |||||||||
|
Issued: 130,070,101 at June 30, 2011; 129,965,635 at December 31, 2010; and 129,694,801 at June 30, 2010 |
260,140 | 259,931 | 259,390 | ||||||
|
Treasury stock, at cost. 2,527 at June 30, 2011 and 0 at December 31, 2010 and June 30, 2010 |
(24 | ) | 0 | 0 | |||||
| Additional paid-in capital | 1,298,109 | 1,301,042 | 1,299,498 | ||||||
| Retained earnings | 498,881 | 481,964 | 470,874 | ||||||
|
Accumulated other comprehensive loss, net of taxes of $18,925; $32,526; and $19,470, respectively |
(34,204 | ) | (58,135 | ) | (35,056 | ) | |||
| Total shareholders' equity | 2,022,902 | 1,984,802 | 2,092,451 | ||||||
| Total liabilities and shareholders' equity | $14,157,744 | $13,954,085 | $13,891,533 | ||||||
| Susquehanna Bancshares, Inc. | |||||||||||||
| P.O. Box 1000 | |||||||||||||
| Lititz, PA 17543 | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| (in thousands, except per share data) | |||||||||||||
| Interest Income: | |||||||||||||
| Loans and leases, including fees | $127,199 | $136,252 | $253,998 | $272,481 | |||||||||
| Securities: | |||||||||||||
| Taxable | 15,026 | 13,458 | 30,706 | 27,487 | |||||||||
| Tax-exempt | 4,034 | 3,371 | 7,985 | 7,061 | |||||||||
| Dividends | 996 | 962 | 2,018 | 1,937 | |||||||||
| Short-term investments | 23 | 39 | 52 | 73 | |||||||||
| Total interest income | 147,278 | 154,082 | 294,759 | 309,039 | |||||||||
| Interest Expense: | |||||||||||||
| Deposits: | |||||||||||||
| Interest-bearing demand and savings | 5,624 | 5,980 | 11,436 | 11,691 | |||||||||
| Time | 14,109 | 21,072 | 29,290 | 43,794 | |||||||||
| Federal Home Loan Bank short-term borrowings | 3,030 | 0 | 5,338 | 38 | |||||||||
| Other short-term borrowings | 1,837 | 536 | 3,734 | 1,295 | |||||||||
| Federal Home Loan Bank long-term borrowings | 7,799 | 11,098 | 15,883 | 20,696 | |||||||||
| Other long-term debt | 8,793 | 9,165 | 17,969 | 17,003 | |||||||||
| Total interest expense | 41,192 | 47,851 | 83,650 | 94,517 | |||||||||
| Net interest income | 106,086 | 106,231 | 211,109 | 214,522 | |||||||||
| Provision for loan and lease losses | 28,000 | 43,000 | 63,000 | 88,000 | |||||||||
| Net interest income, after provision for loan and lease losses | 78,086 | 63,231 | 148,109 | 126,522 | |||||||||
| Noninterest Income: | |||||||||||||
| Service charges on deposit accounts | 8,077 | 8,886 | 15,833 | 16,955 | |||||||||
| Vehicle origination and servicing fees | 1,996 | 1,887 | 3,899 | 3,484 | |||||||||
| Asset management fees | 7,125 | 7,513 | 14,286 | 14,626 | |||||||||
| Income from fiduciary-related activities | 1,853 | 1,787 | 3,688 | 3,591 | |||||||||
| Commissions on brokerage, life insurance and annuity sales | 2,356 | 2,000 | 4,610 | 3,660 | |||||||||
| Commissions on property and casualty insurance sales | 3,468 | 2,879 | 7,453 | 6,281 | |||||||||
| Other commissions and fees | 6,518 | 6,113 | 12,506 | 11,612 | |||||||||
| Income from bank-owned life insurance | 1,149 | 1,341 | 2,255 | 2,631 | |||||||||
| Net gain on sale of loans and leases | 2,419 | 2,766 | 6,470 | 4,733 | |||||||||
| Net realized gain on sales of securities | 1,060 | 4,299 | 2,930 | 10,892 | |||||||||
| Total other-than-temporary impairment, net of recoveries | (2,380 | ) | (3,566 | ) | (4,366 | ) | (4,123 | ) | |||||
| Portion of loss recognized in other comprehensive income (before taxes) | 1,767 | 1,386 | 1,521 | 1,386 | |||||||||
| Net impairment losses recognized in earnings | (613 | ) | (2,180 | ) | (2,845 | ) | (2,737 | ) | |||||
| Other | 1,646 | 980 | 3,436 | 1,225 | |||||||||
| Total noninterest income | 37,054 | 38,271 | 74,521 | 76,953 | |||||||||
| Noninterest Expenses: | |||||||||||||
| Salaries and employee benefits | 53,412 | 49,259 | 104,404 | 97,394 | |||||||||
| Occupancy | 8,861 | 8,510 | 18,516 | 18,351 | |||||||||
| Furniture and equipment | 3,239 | 3,409 | 6,305 | 7,086 | |||||||||
| Advertising and marketing | 3,139 | 3,115 | 5,486 | 5,896 | |||||||||
| FDIC insurance | 5,406 | 4,575 | 8,787 | 8,784 | |||||||||
| Legal fees | 2,723 | 1,836 | 5,317 | 3,600 | |||||||||
| Amortization of intangible assets | 2,133 | 2,360 | 4,296 | 4,743 | |||||||||
| Vehicle lease disposal | 2,620 | 3,844 | 5,057 | 7,171 | |||||||||
| Other | 19,624 | 19,255 | 38,871 | 37,442 | |||||||||
| Total noninterest expenses | 101,157 | 96,163 | 197,039 | 190,467 | |||||||||
| Income before income taxes | 13,983 | 5,339 | 25,591 | 13,008 | |||||||||
| Provision for (benefit from) income taxes | 2,928 | (52 | ) | 4,775 | 114 | ||||||||
| Net Income | 11,055 | 5,391 | 20,816 | 12,894 | |||||||||
| Preferred stock dividends and accretion | 0 | 6,754 | 0 | 10,942 | |||||||||
| Net Income (Loss) Applicable to Common Shareholders | $11,055 | ($1,363 | ) | $20,816 | $1,952 | ||||||||
| Earnings per common share: | |||||||||||||
| Basic | $0.09 | ($0.01 | ) | $0.16 | $0.02 | ||||||||
| Diluted | $0.09 | ($0.01 | ) | $0.16 | $0.02 | ||||||||
| Cash dividends per common share | $0.02 | $0.01 | $0.03 | $0.02 | |||||||||
| Average common shares outstanding: | |||||||||||||
| Basic | 129,761 | 129,630 | 129,744 | 112,207 | |||||||||
| Diluted | 129,832 | 129,630 | 129,826 | 112,233 | |||||||||
| Susquehanna Bancshares, Inc. | ||||||||||||||||
| P.O. Box 1000 | ||||||||||||||||
| Lititz, PA 17543 | ||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||||
| For the Three-month Period Ended | For the Three-month Period Ended | |||||||||||||||
| June 30, 2011 | June 30, 2010 | |||||||||||||||
| Average | Average | |||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||||
| Assets | ||||||||||||||||
| Short-term investments | $78,447 | $23 | 0.12 | $95,959 | $39 | 0.16 | ||||||||||
| Investment securities: | ||||||||||||||||
| Taxable | 2,064,971 | 16,022 | 3.11 | 1,579,983 | 14,420 | 3.66 | ||||||||||
| Tax-advantaged | 408,130 | 6,206 | 6.10 | 329,841 | 5,187 | 6.31 | ||||||||||
| Total investment securities | 2,473,101 | 22,228 | 3.61 | 1,909,824 | 19,607 | 4.12 | ||||||||||
| Loans and leases, (net): | ||||||||||||||||
| Taxable | 9,315,101 | 124,424 | 5.36 | 9,618,981 | 133,599 | 5.57 | ||||||||||
| Tax-advantaged | 305,219 | 4,270 | 5.61 | 261,170 | 4,082 | 6.27 | ||||||||||
| Total loans and leases | 9,620,320 | 128,694 | 5.37 | 9,880,151 | 137,681 | 5.59 | ||||||||||
| Total interest-earning assets | 12,171,868 | 150,945 | 4.97 | 11,885,934 | 157,327 | 5.31 | ||||||||||
| Allowance for loan and lease losses | (200,983 | ) | (182,985 | ) | ||||||||||||
| Other non-earning assets | 2,064,823 | 2,124,506 | ||||||||||||||
| Total assets | $14,035,708 | $13,827,455 | ||||||||||||||
| Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Interest-bearing demand | $3,652,558 | 5,324 | 0.58 | $3,445,011 | 5,679 | 0.66 | ||||||||||
| Savings | 806,682 | 300 | 0.15 | 778,373 | 301 | 0.16 | ||||||||||
| Time | 3,500,813 | 14,109 | 1.62 | 3,699,050 | 21,072 | 2.28 | ||||||||||
| Short-term borrowings | 667,856 | 1,837 | 1.10 | 503,082 | 536 | 0.43 | ||||||||||
| FHLB borrowings | 1,115,754 | 10,829 | 3.89 | 1,024,326 | 11,098 | 4.35 | ||||||||||
| Long-term debt | 690,573 | 8,793 | 5.11 | 726,994 | 9,165 | 5.06 | ||||||||||
| Total interest-bearing liabilities | 10,434,236 | 41,192 | 1.58 | 10,176,836 | 47,851 | 1.89 | ||||||||||
| Demand deposits | 1,381,708 | 1,291,607 | ||||||||||||||
| Other liabilities | 219,369 | 221,338 | ||||||||||||||
| Total liabilities | 12,035,313 | 11,689,781 | ||||||||||||||
| Equity | 2,000,395 | 2,137,674 | ||||||||||||||
| Total liabilities & shareholders' equity | $14,035,708 | $13,827,455 | ||||||||||||||
|
Net interest income / yield on average earning assets |
|
$109,753 | 3.62 | $109,476 | 3.69 | |||||||||||
|
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. | ||||||||||||||||
| P.O. Box 1000 | ||||||||||||||||
| Lititz, PA 17543 | ||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||||
| For the Six-month Period Ended | For the Six-month Period Ended | |||||||||||||||
| June 30, 2011 | June 30, 2010 | |||||||||||||||
| Average | Average | |||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||||
| Assets | ||||||||||||||||
| Short-term investments | $78,896 | $52 | 0.13 | $88,490 | $73 | 0.17 | ||||||||||
| Investment securities: | ||||||||||||||||
| Taxable | 2,072,186 | 32,724 | 3.18 | 1,539,668 | 29,424 | 3.85 | ||||||||||
| Tax-advantaged | 403,239 | 12,285 | 6.14 | 336,618 | 10,863 | 6.51 | ||||||||||
| Total investment securities | 2,475,425 | 45,009 | 3.67 | 1,876,286 | 40,287 | 4.33 | ||||||||||
| Loans and leases, (net): | ||||||||||||||||
| Taxable | 9,303,458 | 248,532 | 5.39 | 9,676,952 | 267,226 | 5.57 | ||||||||||
| Tax-advantaged | 298,851 | 8,409 | 5.67 | 259,727 | 8,085 | 6.28 | ||||||||||
| Total loans and leases | 9,602,309 | 256,941 | 5.40 | 9,936,679 | 275,311 | 5.59 | ||||||||||
| Total interest-earning assets | 12,156,630 | 302,002 | 5.01 | 11,901,455 | 315,671 | 5.35 | ||||||||||
| Allowance for loan and lease losses | (196,125 | ) | (178,960 | ) | ||||||||||||
| Other non-earning assets | 2,040,417 | 2,093,304 | ||||||||||||||
| Total assets | $14,000,922 | $13,815,799 | ||||||||||||||
| Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Interest-bearing demand | $3,669,649 | 10,843 | 0.60 | $3,399,548 | 11,104 | 0.66 | ||||||||||
| Savings | 793,655 | 593 | 0.15 | 764,728 | 587 | 0.15 | ||||||||||
| Time | 3,468,520 | 29,290 | 1.70 | 3,719,618 | 43,794 | 2.37 | ||||||||||
| Short-term borrowings | 707,588 | 3,734 | 1.06 | 659,370 | 1,295 | 0.40 | ||||||||||
| FHLB borrowings | 1,108,100 | 21,221 | 3.86 | 1,000,170 | 20,734 | 4.18 | ||||||||||
| Long-term debt | 695,522 | 17,969 | 5.21 | 710,689 | 17,003 | 4.82 | ||||||||||
| Total interest-bearing liabilities | 10,443,034 | 83,650 | 1.62 | 10,254,123 | 94,517 | 1.86 | ||||||||||
| Demand deposits | 1,360,757 | 1,257,885 | ||||||||||||||
| Other liabilities | 205,107 | 221,252 | ||||||||||||||
| Total liabilities | 12,008,898 | 11,733,260 | ||||||||||||||
| Equity | 1,992,024 | 2,082,539 | ||||||||||||||
| Total liabilities & shareholders' equity | $14,000,922 | $13,815,799 | ||||||||||||||
|
|
||||||||||||||||
|
Net interest income / yield on average earning assets |
$218,352 | 3.62 | $221,154 | 3.75 | ||||||||||||
|
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. | |||||||||||||||
| Loans and Leases | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Total Loans and Leases | |||||||||||||||
| 06/30/11 | 12/31/10 | 06/30/10 | |||||||||||||
| Commercial, financial, and agricultural | $ | 1,793,490 | $ | 1,816,519 | $ | 1,891,349 | |||||||||
| Real estate - construction | 775,096 | 877,223 | 947,073 | ||||||||||||
| Real estate secured - residential | 2,704,802 | 2,666,692 | 2,646,699 | ||||||||||||
| Real estate secured - commercial | 2,999,986 | 2,998,176 | 3,042,460 | ||||||||||||
| Consumer | 665,602 | 603,084 | 548,453 | ||||||||||||
| Leases | 697,211 | 671,503 | 711,022 | ||||||||||||
| Total loans and leases | $ | 9,636,187 | $ | 9,633,197 | $ | 9,787,056 | |||||||||
| Nonaccrual Loans and Leases | |||||||||||||||
| 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 06/30/10 | |||||||||||
| Commercial, financial, and agricultural | $ | 18,219 | $ | 19,972 | $ | 20,012 | $ | 22,522 | $ | 24,917 | |||||
| Real estate - construction | 44,305 | 56,446 | 57,779 | 76,418 | 89,476 | ||||||||||
| Real estate secured - residential | 51,047 | 55,930 | 50,973 | 47,564 | 48,213 | ||||||||||
| Real estate secured - commercial | 73,346 | 77,533 | 65,313 | 77,858 | 70,785 | ||||||||||
| Consumer | 0 | 0 | 1 | 2 | 4 | ||||||||||
| Leases | 3,816 | 3,060 | 2,817 | 3,054 | 3,983 | ||||||||||
| Total nonaccrual loans and leases | $ | 190,733 | $ | 212,941 | $ | 196,895 | $ | 227,418 | $ | 237,378 | |||||
| Restructured Loans | |||||||||||||||
| 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 06/30/10 | |||||||||||
| Commercial, financial, and agricultural | $ | 14,387 | $ | 14,999 | $ | 15,877 | $ | 14,796 | $ | 15,391 | |||||
| Real estate - construction | 0 | 298 | 6,125 | 4,847 | 4,149 | ||||||||||
| Real estate secured - residential | 12,734 | 9,363 | 11,300 | 20,236 | 7,625 | ||||||||||
| Real estate secured - commercial | 34,874 | 53,799 | 81,034 | 78,692 | 51,823 | ||||||||||
| Consumer | 148 | 0 | 230 | 827 | 607 | ||||||||||
| Total restructured loans | $ | 62,143 | $ | 78,459 | $ | 114,566 | $ | 119,398 | $ | 79,595 | |||||
| Net Charge-offs | |||||||||||||||
| 2Q 2011 | 1Q 2011 | 4Q 2010 | 3Q 2010 | 2Q 2010 | |||||||||||
| Commercial, financial, and agricultural | $ | 9,138 | $ | 3,700 | $ | 2,335 | $ | 4,298 | $ | 7,701 | |||||
| Real estate - construction | 6,352 | 8,154 | 20,607 | 15,017 | 11,798 | ||||||||||
| Real estate secured - residential | 5,042 | 3,803 | 5,477 | 3,117 | 3,062 | ||||||||||
| Real estate secured - commercial | 10,467 | 14,442 | 4,132 | 10,149 | 10,531 | ||||||||||
| Consumer | 67 | 2,079 | 366 | 451 | 771 | ||||||||||
| Leases | 875 | 1,423 | 1,364 | 1,648 | 2,161 | ||||||||||
| Total net charge-offs | $ | 31,941 | $ | 33,601 | $ | 34,281 | $ | 34,680 | $ | 36,024 | |||||
CONTACT:
Susquehanna Bancshares, Inc.
Abram G. Koser, Vice
President, Investor Relations
717-625-6305
ir@susquehanna.net