Attached files

file filename
8-K - FORM 8-K - First NBC Bank Holding Cod677222d8k.htm

Exhibit 99.1

For Immediate Release

FIRST NBC BANK HOLDING COMPANY ANNOUNCES 2013 FOURTH QUARTER RESULTS

NEW ORLEANS, LA (February 11, 2014) – First NBC Bank Holding Company (NASDAQ: NBCB), the holding company for First NBC Bank (“Company”), today announced financial results for the fourth quarter of 2013. For the quarter ended December 31, 2013, the Company reported net income available to common shareholders of $13.5 million, or $0.71 per share, as compared to $10.4 million, or $0.55 per share, for the third quarter of 2013 and $5.0 million, or $0.36 per share, for the fourth quarter of 2012.

For the year ended December 31, 2013, the Company reported net income available to common shareholders of $40.6 million, or $2.38 per share, generating a return on average stockholders’ equity of 12.63% and a return on average assets of 1.37%. The Company reported net income available to common shareholders of $28.4 million, or $2.04 per share, for the year ended December 31, 2012.

The Company’s earnings per share on a diluted basis were $0.69, $0.54, and $0.35 per diluted share, for the fourth quarter of 2013, third quarter of 2013, and fourth quarter of 2012, respectively. This was an increase of $0.15 per diluted share, or 27.8%, over the third quarter of 2013, and an increase of $0.34 per diluted share, or 97.1%, over the fourth quarter of 2012. For the year ended December 31, 2013, the Company reported earnings per share on a diluted basis of $2.32 per diluted share compared to $2.02 per diluted share for the prior year end, an increase of $0.30 per diluted share, or 14.9%.

Earnings for the fourth quarter 2013 were impacted by fee income earned from the allocation of the Company’s Federal New Markets Tax Credits (NMTC) received from the Community Development Financial Institutions Fund (CDFI) of the U.S. Treasury. As announced previously, the Company received a $50 million NMTC award in April 2013. As the Company allocates these credits to qualifying projects, it earns a fee as each project closes of 4% of the award. The Company recognizes fees related to tax credit projects when they are earned. Since the CDFI’s NMTC awards are typically made in the spring of each year, the project closings tend to occur in the fourth quarter of the year of the CDFI award or the first quarter of the next year, and the Company’s fee income reflects this timing. The tax credit business is not a consistent quarter over quarter business because it is contingent on the amount of allocation awarded, the type of credit being utilized, and the timing of the closing event for the recognition of the fee income. In the fourth quarter of 2013, the Company recognized $1.1 million in Community Development Entity fees earned compared to $0.4 million for the linked-quarter, and $0.9 million in the fourth quarter of 2012. For the year ended 2013, the Company recognized $2.9 million compared to $1.1 million for the year ended 2012. The increase is due primarily to the increase in qualifying projects and the NMTC allocation received in 2013.

Also in 2013, the Company received an allocation of $23.9 million of State of Louisiana New Markets Job Premium Tax Credits (a first time program) to be allocated to projects for which the Company allocates Federal NMTCs. The Company’s income from New Markets Job Premium Tax Credits is generated from syndication fees on the sale of the credits to third party Louisiana taxpayers after the credits are earned through investment in a qualifying project. This state allocation generated $10.8 million in state credits, and the Company recorded income from the sale of state tax credits of $1.5 million in the fourth quarter of 2013.

Performance Highlights

 

    The Company continues to experience strong asset growth, with total assets of $3.3 billion at December 31, 2013, an increase of 4.0% from September 30, 2013 and 23.1% from December 31, 2012.

 

    During the fourth quarter of 2013, the Company invested in 11 Federal NMTC projects, which generated $15.6 million in tax benefits, of which $2.0 million were recognized in 2013 and $13.6 million are expected to be recognized in future periods.

 

    The Company funded $20.7 million in construction loans during the fourth quarter related to these Federal NMTC projects and has additional commitments of $108.8 million.

 

    The Company recorded $1.5 million in syndication fees in income from sales of state tax credits during the fourth quarter of 2013. This income from sales of state tax credits was generated from the $23.9 million in qualified investment authority that the Company was awarded under the State of Louisiana New Markets Jobs Act in the third quarter of 2013.

 

    The net interest margin for the quarter ended December 31, 2013 was 3.26%, an increase of 18 basis points on a linked-quarter basis. The impact of the hedge executed by the Company during the third quarter of 2013 was an increase in the margin for the fourth quarter of 2013 of 9 basis points from the linked-quarter.

 

    The Company’s cost of deposits for the fourth quarter of 2013 was 1.58%, a decrease of 4 basis points on a linked-quarter basis due primarily to the implementation of the tiered rates on deposits.


Loans

The Company’s loans totaled $2.4 billion at December 31, 2013, an increase of $140.3 million, or 6.3%, from September 30, 2013, and an increase of $435.6 million, or 22.7%, from December 31, 2012. Loan growth continues to be driven primarily by increases in commercial real estate and commercial loans due to favorable economic market conditions in the New Orleans trade area.

The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.

 

                   Increase (Decrease)            Increase (Decrease)  
(dollars in thousands)    December 31,
2013
     September 30,
2013
     Amount     Percent     December 31,
2012
     Amount      Percent  

Construction

   $ 212,430       $ 192,241       $ 20,189        10.5   $ 168,544       $ 43,886         26.0

Commercial real estate

     1,128,181         1,120,422         7,759        0.7        988,994         139,187         14.1   

Consumer real estate

     117,653         113,414         4,239        3.7        103,516         14,137         13.7   

Commercial

     883,111         773,571         109,540        14.2        647,090         236,021         36.5   

Consumer

     16,402         17,864         (1,462     (8.2     14,073         2,329         16.5   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total loans

   $ 2,357,777       $ 2,217,512       $ 140,265        6.3   $ 1,922,217       $ 435,560         22.7
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Deposits

Total deposits at December 31, 2013 were $2.7 billion, an increase of $96.6 million, or 3.7%, from September 30, 2013, and an increase of $462.3 million, or 20.4%, from December 31, 2012.

The following table sets forth the composition of the Company’s deposits as of the dates indicated.

 

                   Increase (Decrease)            Increase (Decrease)  
(dollars in thousands)    December 31,
2013
     September 30,
2013
     Amount     Percent     December 31,
2012
     Amount      Percent  

Noninterest-bearing demand

   $ 291,080       $ 241,383       $ 49,697        20.6   $ 239,538       $ 51,542         21.5

NOW accounts

     511,620         544,005         (32,385     (6.0     437,542         74,078         16.9   

Money market deposits

     655,173         541,088         114,085        21.1        410,928         244,245         59.4   

Savings deposits

     53,779         51,189         2,590        5.1        45,295         8,484         18.7   

Certificates of deposits

     1,219,155         1,256,512         (37,357     (3.0     1,135,225         83,930         7.4   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total deposits

   $ 2,730,807       $ 2,634,177       $ 96,630        3.7   $ 2,268,528       $ 462,279         20.4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net Interest Income

Net interest income for the fourth quarter December 31, 2013 totaled $24.1 million, an increase of $2.3 million, or 10.5%, from the linked-quarter and an increase of $4.4 million, or 22.1%, from the three month period ended December 31, 2012. Net interest income for the year ended December 31, 2013 totaled $84.9 million, an increase of $10.1 million, or 13.5%, from the same period of 2012.

The Company’s net interest margin was 3.26% for the quarter ended December 31, 2013, 18 basis points higher than the third quarter of 2013. The linked-quarter increase was due primarily to the first full quarter impact of the interest rate swaps, which increased the margin by 9 basis points as well as the lower cost of deposits which had a positive impact on the margin of 4 basis points. The Company expects these positive net interest margin trends to continue in 2014 and will continue to employ strategic initiatives to improve the net interest margin.

The following table sets forth the Company’s average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated.


     For the Three Months Ended  
     December 31, 2013     September 30, 2013     December 31, 2012  
(dollars in thousands)    Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
 

Interest-earning assets:

               

Short- term investments

   $ 41,826         0.22   $ 84,019         0.22   $ 70,815         0.22

Investment securities

     615,380         2.75        556,360         2.40        455,491         1.96   

Loans

     2,276,661         5.25        2,167,325         5.23        1,877,237         5.53   
  

 

 

      

 

 

      

 

 

    

Total interest-earning assets

   $ 2,933,867         4.66      $ 2,807,704         4.52      $ 2,403,543         4.70   
  

 

 

      

 

 

      

 

 

    

Interest-bearing liabilities:

               

Savings

   $ 53,856         0.70      $ 52,215         0.62      $ 44,062         0.77   

Money market deposits

     600,943         1.43        468,151         1.50        405,830         1.62   

NOW accounts

     525,697         1.17        551,012         1.33        410,923         1.37   

Certificates of deposit under $100,000

     398,707         1.61        418,714         1.56        432,173         1.54   

Certificates of deposit of $100,000 or more

     666,125         1.95        663,698         1.93        553,929         1.80   

CDARS®

     178,359         2.16        174,161         2.17        126,858         2.40   
  

 

 

      

 

 

      

 

 

    

Total interest-bearing deposits

   $ 2,423,687         1.58      $ 2,327,951         1.62      $ 1,973,775         1.63   

Fed funds purchased and repurchase agreements

     79,237         1.48        70,822         1.48        49,448         1.43   

Other borrowings

     55,202         2.65        55,220         2.65        58,572         2.50   
  

 

 

      

 

 

      

 

 

    

Total interest-bearing liabilities

   $ 2,558,126         1.60      $ 2,453,993         1.64      $ 2,081,795         1.65   
  

 

 

      

 

 

      

 

 

    

Net interest spread

        3.06        2.88        3.05

Net interest margin

        3.26        3.08        3.27


     For The Years Ended  
     December 31, 2013     December 31, 2012  
(dollars in thousands)    Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
 

Interest-earning assets:

          

Short- term investments

   $ 67,327         0.22   $ 66,525         0.22

Investment securities

     548,213         2.30        385,007         2.22   

Loans

     2,117,748         5.25        1,775,642         5.51   
  

 

 

      

 

 

    

Total interest-earning assets

   $ 2,733,288         4.54      $ 2,227,174         4.78   
  

 

 

      

 

 

    

Interest-bearing liabilities:

          

Savings

   $ 50,269         0.65      $ 41,700         0.63   

Money market deposits

     455,918         1.48        397,818         1.62   

NOW accounts

     521,721         1.28        329,691         1.24   

Certificates of deposit under $100,000

     418,525         1.57        445,494         1.56   

Certificates of deposit of $100,000 or more

     637,541         1.91        515,046         1.78   

CDARS®

     171,799         2.19        111,399         2.44   
  

 

 

      

 

 

    

Total interest-bearing deposits

   $ 2,255,773         1.61      $ 1,841,148         1.61   

Fed funds purchased and repurchase agreements

     69,971         1.46        41,186         1.47   

Other borrowings

     70,838         2.66        55,732         2.61   
  

 

 

      

 

 

    

Total interest-bearing liabilities

   $ 2,396,582         1.63      $ 1,938,066         1.63   
  

 

 

      

 

 

    

Net interest spread

        2.91        3.15

Net interest margin

        3.11        3.36

Noninterest Income

Noninterest income for the fourth quarter of 2013 totaled $5.4 million, an increase of $0.6 million, or 13.3%, compared to the fourth quarter of 2012. The increase in noninterest income for the fourth quarter of 2013 compared to the fourth quarter of 2012 resulted primarily from increases of $0.6 million in gains on other assets sold, primarily from the sale of a piece of OREO property; $0.5 million in gains on sales of loans, primarily from the sale of loans acquired in the Central Progressive Bank acquisition; and $1.8 million in income from sales of state tax credits primarily related to its receipt of qualified equity investment authority from the State of Louisiana under the Louisiana New Markets Jobs Act, partially offset by a decrease of $2.5 million in securities gains . Noninterest income, excluding securities gains, for the quarter ended December 31, 2013, increased $3.1 million compared to the same quarter of 2012.

Noninterest income for the year ended December 31, 2013 totaled $13.4 million, an increase of $0.3 million, or 2.1%, from the same period last year. Noninterest income, excluding securities gains, for the year ended December 31, 2013 totaled $13.1 million, an increase of $4.3 million, or 48.7%, compared to the year ended December 31, 2012. The increase in noninterest income, excluding securities gains, for the year ended 2013 compared to the same period of 2012 resulted primarily from increases of $0.5 million in gains from the sale of other assets, $2.2 million in income from the sale of state tax credits, and $1.7 million in management fees from First NBC Community Development Fund, LLC related to the Fund’s NMTC investments. The Company expects that its participation in the Federal NMTC investment program will continue to have a positive impact on noninterest income in future quarters to the extent the Company continues to receive allocations of Federal NMTC.

The Company realized $0.3 million and $4.3 million in securities gains during the years ended December 31, 2013 and 2012, respectively.

Noninterest Expense

Noninterest expense for the three month period ended December 31, 2013 totaled $19.4 million, an increase of $2.3 million, or 13.6%, compared to the linked quarter, and an increase of $5.6 million, or 40.4% compared to three month period ended December 31, 2012. The increase over the prior year three month period was due primarily to increases in salaries and employee benefits of $1.9 million, professional fees of $1.2 million, and tax credit amortization of $1.4 million.


Noninterest expense for the year ended December 31, 2013 totaled $67.3 million, an increase of $12.3 million, or 22.4%, compared to the same period of 2012. The increase in noninterest expense for the fiscal year ended 2013 compared to the fiscal year ended 2012, resulted primarily from increases in salaries and benefits expense of $3.5 million, professional fees of $3.7 million, and tax credit amortization of $3.8 million.

Taxes

The Company’s tax benefit for the quarter and year ended December 31, 2013 was $5.9 million and $19.8 million, respectively, an increase of $6.3 million and $12.2 million, respectively, compared to the prior year quarter and year-end periods. The increase was due to the Company’s participation in various tax credit programs.

The Company expects to experience an effective tax rate below the statutory rate of 35% due primarily to its receipt of Federal New Markets Tax Credits, Low-Income Housing Tax Credits and Federal Historic Rehabilitation Tax Credits.

Shareholders’ Equity

Shareholders’ equity totaled $381.9 million at December 31, 2013, an increase of $133.8 million from year-end 2012. The increase was primarily attributable to the results of the Company’s initial public offering and retained earnings over the period. During the fourth quarter of 2013, the holders of the Company’s convertible preferred stock Series C converted a portion of their shares to common stock.

About First NBC Bank Holding Company

First NBC Bank Holding Company, headquartered in New Orleans, Louisiana, offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. The Company’s primary market is the New Orleans metropolitan area and the Mississippi Gulf Coast. The Company operates 32 full service banking offices located throughout its market and a loan production office in Gulfport, Mississippi and had 494 employees at December 31, 2013.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures typically adjust GAAP performance measures to adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Quarterly Report on Form 10-Q, for the quarters ended June 30, 2013 and September 30, 2013, and other reports and statements the Company has filed with Securities and Exchange Commission which are available at the SEC’s website (www.sec.gov).


For further information contact:

First NBC Bank Holding Company

Ashton J. Ryan, Jr.

President and Chief Executive Officer

(504) 671-3801

aryanjr@firstnbcbank.com


FIRST NBC BANK HOLDING COMPANY

CONSOLIDATED BALANCE SHEETS-UNAUDITED

 

(In thousands)    December 31,
2013
    December 31,
2012
 

Assets

    

Cash and due from banks

   $ 28,140      $ 26,471   

Short-term investments

     3,502        9,541   

Investment securities available for sale, at fair value

     524,536        486,399   

Investment securities held to maturity

     94,904        —     

Mortgage loans held for sale

     6,577        25,860   

Loans, net of allowance for loan losses of $32,143 and $26,977, respectively

     2,325,634        1,895,240   

Bank premises and equipment, net

     51,174        47,067   

Accrued interest receivable

     10,994        8,728   

Goodwill and other intangible assets

     8,433        8,682   

Investment in real estate properties

     10,147        6,935   

Investment in tax credit entities

     117,684        67,393   

Cash surrender value of bank-owned life insurance

     26,187        25,506   

Other real estate

     3,733        8,632   

Deferred tax asset

     51,191        16,589   

Receivables from sales of investments

     —          16,909   

Other assets

     23,781        20,915   
  

 

 

   

 

 

 

Total assets

   $ 3,286,617      $ 2,670,867   
  

 

 

   

 

 

 

Liabilities and equity

    

Deposits:

    

Noninterest-bearing

   $ 291,080      $ 239,538   

Interest-bearing

     2,439,727        2,028,990   
  

 

 

   

 

 

 

Total deposits

     2,730,807        2,268,528   

Short-term borrowings

     8,425        21,800   

Repurchase agreements

     75,957        36,287   

Long-term borrowings

     55,110        75,220   

Accrued interest payable

     6,682        5,557   

Other liabilities

     27,777        15,373   
  

 

 

   

 

 

 

Total liabilities

     2,904,758        2,422,765   

Shareholders’ equity:

    

Preferred stock

    

Convertible preferred stock Series C – no par value; 1,680,219 shares authorized; 364,983 and 916,841 shares issued and outstanding at December 31, 2013 and December 31, 2012

     10,679        11,231   

Preferred stock Series D – no par value; 37,935 shares authorized, issued and outstanding at December 31, 2013 and December 31, 2012

     37,935        37,935   

Common stock- par value $1 per share; 20,000,000 shares authorized; 18,514,271 shares issued and outstanding at December 31, 2013 and 13,052,583 shares issued and outstanding at December 31, 2012

     18,514        13,052   

Additional paid-in capital

     230,855        128,984   

Accumulated earnings

     100,389        59,825   

Accumulated other comprehensive loss, net

     (16,515     (2,926
  

 

 

   

 

 

 

Total shareholders’ equity

     381,857        248,101   

Noncontrolling interest

     2        1   
  

 

 

   

 

 

 

Total equity

     381,859        248,102   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 3,286,617      $ 2,670,867   
  

 

 

   

 

 

 


FIRST NBC BANK HOLDING COMPANY

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

     For the Three Months Ended
December 31,
    For the Years Ended
December 31,
 
(In thousands, except per share data)    2013     2012     2013     2012  

Interest income:

        

Loans, including fees

   $ 30,143      $ 26,114      $ 111,260      $ 97,754   

Investment securities

     4,271        2,241        12,619        8,559   

Short-term investments

     23        39        145        144   
  

 

 

   

 

 

   

 

 

   

 

 

 
     34,437        28,394        124,024        106,457   

Interest expense:

        

Deposits

     9,661        8,102        36,239        29,597   

Borrowings and securities sold under repurchase agreements

     665        549        2,909        2,069   
  

 

 

   

 

 

   

 

 

   

 

 

 
     10,326        8,651        39,148        31,666   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     24,111        19,743        84,876        74,791   

Provision for loan losses

     2,400        4,800        9,800        11,035   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     21,711        14,943        75,076        63,756   

Noninterest income:

        

Service charges on deposit accounts

     566        493        2,027        2,486   

Investment securities gain, net

     10        2,464        316        4,324   

Gain (loss) on other assests sold, net

     914        275        1,055        504   

Gain (loss) on fixed assets, net

     6        —          16        (4

Gain on sale of loans, net

     513        —          835        603   

Cash surrender value income on bank-owned life insurance

     165        183        681        750   

Income from sales of state tax credits

     1,605        (212     2,785        578   

Community Development Entity fees earned

     1,147        860        2,875        1,136   

ATM fee income

     472        436        1,859        1,686   

Other

     3        258        967        1,073   
  

 

 

   

 

 

   

 

 

   

 

 

 
     5,401        4,757        13,416        13,136   
  

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest expense:

        

Salaries and employee benefits

     7,169        5,247        23,812        20,307   

Occupancy and equipment expenses

     2,612        2,321        10,204        9,755   

Professional fees

     2,225        1,023        6,929        3,269   

Taxes, licenses and FDIC assessments

     1,307        925        4,245        3,258   

Tax credit investment amortization

     2,344        901        8,639        4,808   

Write-down of other real estate

     94        44        225        295   

Data processing

     1,017        1,305        4,219        4,485   

Advertising and marketing

     951        287        2,427        1,904   

Other

     1,704        1,767        6,632        6,926   
  

 

 

   

 

 

   

 

 

   

 

 

 
     19,423        13,820        67,332        55,007   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     7,689        5,880        21,160        21,885   

Income tax (benefit) expense

     (5,867     443        (19,751     (7,565
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     13,556        5,437        40,911        29,450   

Less net income attributable to noncontrolling interests

     —          (375     —          (510
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Company

     13,556        5,062        40,911        28,940   

Less preferred stock dividends

     (95     (95     (347     (510
  

 

 

   

 

 

   

 

 

   

 

 

 

Income available to common shareholders

   $ 13,461      $ 4,967      $ 40,564      $ 28,430   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share – basic

   $ 0.71      $ 0.36      $ 2.38      $ 2.04   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share – diluted

   $ 0.69      $ 0.35      $ 2.32      $ 2.02   
  

 

 

   

 

 

   

 

 

   

 

 

 


FIRST NBC BANK HOLDING COMPANY

EARNINGS PER COMMON SHARE

 

     For the Three Months Ended
December 31,
     For the Years Ended
December 31,
 
(In thousands, except per share data)    2013      2012      2013      2012  

Basic: Net income available to common shareholders

   $ 13,461       $ 4,967       $ 40,564       $ 28,430   

Less: Net income attributable to participating securities (Series C preferred stock)

     468         312         1,980         2,003   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to common shareholders

   $ 12,993       $ 4,655       $ 38,584       $ 26,427   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted-average common shares outstanding

     18,269,074         13,030,916         16,203,919         12,948,076   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.71       $ 0.36       $ 2.38       $ 2.04   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted: Net income attributable to common shareholders

   $ 12,993       $ 4,655       $ 38,584       $ 26,427   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted-average common shares outstanding

     18,269,074         13,030,916         16,203,919         12,948,076   

Effect of dilutive securities:

           

Stock options outstanding

     439,929         113,545         337,371         88,883   

Warrants

     102,974         52,703         82,824         45,614   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted-average common shares outstanding – assuming dilution

     18,811,977         13,197,164         16,624,114         13,082,573   

Diluted earnings per share

   $ 0.69       $ 0.35       $ 2.32       $ 2.02   
  

 

 

    

 

 

    

 

 

    

 

 

 


FIRST NBC BANK HOLDING COMPANY

SUMMARY FINANCIAL INFORMATION

 

     For the Three Months Ended
December 31,
    %
Change
    For the Three
Months Ended
September 30,
2013
    %
Change
 
(In thousands, except per share data)    2013     2012        

EARNINGS DATA

          

Total Interest income

   $ 34,437      $ 28,394        21.3   $ 31,973        7.7

Total Interest expense

     10,326        8,651        19.4        10,150        1.7   
  

 

 

   

 

 

     

 

 

   

Net interest income

     24,111        19,743        22.1        21,823        10.5   

Provision for loan losses

     2,400        4,800        (50.0     2,400        —     

Total noninterest income

     5,401        4,757        13.5        2,461        NM   

Total noninterest expense

     19,423        13,820        40.5        17,092        13.6   
  

 

 

   

 

 

     

 

 

   

Income before income taxes

     7,689        5,880        30.8        4,792        60.5   

Income tax (benefit) expense

     (5,867     443        NM        (5,673     3.4   
  

 

 

   

 

 

     

 

 

   

Net income

     13,556        5,437        NM        10,465        29.5   

Net income attributable to noncontrolling interest

     —          (375     NM        —          —     

Preferred stock dividends

     (95     (95     —          (62     53.2   
  

 

 

   

 

 

     

 

 

   

Net income available to common shareholders

   $ 13,461      $ 4,967        NM      $ 10,403        29.4   
  

 

 

   

 

 

     

 

 

   

AVERAGE BALANCE SHEET DATA

          

Total assets

   $ 3,209,664      $ 2,605,642        23.2   $ 3,090,916        3.8

Total interest-earning assets

     2,933,867        2,403,543        22.1        2,807,704        4.5   

Total loans

     2,276,661        1,877,237        21.3        2,167,325        5.0   

Total interest-bearing deposits

     2,423,687        1,973,775        22.8        2,327,951        4.1   

Total interest-bearing liabilities

     2,558,126        2,081,795        22.9        2,453,993        4.2   

Total deposits

     2,670,089        2,223,579        20.1        2,571,461        3.8   

Total shareholders’ equity

     369,743        248,588        48.7        366,420        0.9   

SELECTED RATIOS(1)

          

Return on average common equity

     16.77     10.10       13.09  

Return on average equity

     14.55        8.10          11.33     

Return on average assets

     1.68        0.77          1.34     

Net interest margin

     3.26        3.27          3.08     

Efficiency ratio(2)

     65.81        56.43          70.39     

Tier 1 leverage capital ratio(3)

     10.96        9.91          10.99     

Total risk-based capital ratio(3)

     13.48        13.13          14.07     

ASSET QUALITY RATIOS(1)

          

Nonperforming loans to total loans(4) (6)

     0.76     1.22       0.92  

Nonperforming assets to total assets(5)

     0.67        1.20          0.86     

Allowance for loan losses to total loans(6)

     1.36        1.40          1.35     

Allowance for loan losses to nonperforming loans(4)

     178.34        115.19          146.35     

Net charge-offs to average loans

     0.22        0.12          0.21     

 

 

(1) With the exception of end-of-period ratios, all ratios are based on average monthly balances during the respective periods.
(2) Efficiency ratio is the ratio of noninterest expense to net interest income and noninterest income.
(3) Capital ratios are end of period ratios for the Bank only.
(4) Nonperforming loans consist of nonaccrual loans and restructured loans.
(5) Nonperforming assets consist of nonperforming loans and real estate and other property that has been repossessed.
(6) Total loans are net of unearned discounts and deferred fees and costs.


FIRST NBC BANK HOLDING COMPANY

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

     For the Three Months Ended  
     December 31, 2013     December 31, 2012  
     Dollar Amount           Dollar Amount        
(In thousands, except per share data)    Pre-tax     After-tax(1)     Per share     Pre-tax     After-tax(1)     Per share  

Net income (GAAP)

   $ 7,689      $ 13,556      $ 0.71      $ 5,880      $ 5,437      $ 0.36   

Noninterest income adjustments

            

(Gain) on sale of investment securities

     (10     (7     —          (2,464     (1,602     (0.12

(Gain) on sale of OREO

     (1,012     (658     (0.04     —          —          —     

(Gain) on sale of acquired impaired loans(2)

     (327     (212     (0.01     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (Non-GAAP)

   $ 6,340      $ 12,679      $ 0.66      $ 3,416      $ 3,835      $ 0.24   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1) After-tax amounts are based on a 35% marginal tax rate, except for Net income which reflects the actual tax benefit/expense.
(2) Sale relates to acquired impaired loans from the CPB acquisition in November 2011.

FIRST NBC BANK HOLDING COMPANY

SUMMARY OF FEDERAL NEW MARKETS TAX CREDIT ACTIVITY

 

     For the Three Months Ended      For the Year Ended  
(dollars in thousands)    December 31,
2013
     December 31,
2012
     December 31,
2013
     December 31,
2012
 

Projects closed (1)

     4         3         8         4   

NMTC allocation

   $ 18,500       $ 19,500       $ 55,500       $ 25,500   

Community Development Entity fees earned

   $ 1,147       $ 860       $ 2,875       $ 1,136   

Projects invested not closed

     7         3         7         3   

 

 

(1) Closing event occurred for recognition of fee income.