First NBC Bank Holding Co - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - First NBC Bank Holding Co	f8k_050114.htm

Exhibit 99.1

For Immediate Release

FIRST NBC BANK HOLDING COMPANY ANNOUNCES 2014 FIRST QUARTER RESULTS

NEW ORLEANS, LA (May 1, 2014) – First NBC Bank Holding Company (NASDAQ: NBCB), the holding company for First NBC Bank (“Company”), today announced financial results for the first quarter of 2014. For the quarter ended March 31, 2014, the Company reported net income available to common shareholders of $12.5 million, or $0.68 per share, as compared to $13.0 million, or $0.71 per share, for the fourth quarter of 2013, and $7.7 million, or $0.59 per share, for the first quarter of 2013. The Company’s earnings per share on a diluted basis were $0.66, $0.69, and $0.58 per diluted share, for the first quarter of 2014, fourth quarter of 2013, and first quarter of 2013, respectively. This was a decrease of $0.03 per diluted share, or 5.0%, over the fourth quarter of 2013, and an increase of $0.08 per diluted share, or 13.8%, over the first quarter of 2013.

Net income on a non-GAAP basis adjusted for certain nonrecurring items for the first quarter of 2014 was $12.8 million, or $0.68 per share, compared to $12.7 million, or $0.66 per share for the fourth quarter of 2013, and $8.1 million, or $0.57 per share for the first quarter of 2013 (refer to press release supplemental table). Adjusted earnings per share, non-GAAP, on a diluted basis were $0.66, $0.65, and $0.56 per diluted share, for the first quarter of 2014, fourth quarter of 2013, and first quarter of 2013, respectively. Adjusted net income on a non-GAAP basis increased $0.1 million compared to the linked-quarter, or $0.02 per share. Adjusted net income on a non-GAAP basis increased $4.7 million compared to the first quarter of 2013, or $0.11 per share.

Performance Highlights

•

The Company continues to experience strong asset growth, with total assets of $3.5 billion at March 31, 2014, an increase of 6.0% from December 31, 2013 and 24.6% from March 31, 2013.

•

The Company’s loan portfolio increased $113.2 million, or 4.8%, compared to December 31, 2013 and $482.7 million, or 24.3%, compared to March 31, 2013.

•

The Company’s deposits increased $158.6 million, or 5.8%, compared to December 31, 2013 and $506.9 million, or 21.3%, compared to March 31, 2013.

•

The Company recorded provision expense of $3.0 million for the first quarter of 2014, compared to $2.6 million for the same quarter of last year. The increase in the provision was due to the growth of the loan portfolio.

•

The Company recorded $0.6 million in syndication fees in income from sales of state tax credits during the first quarter of 2014. 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, which generated $10.8 million in state credits. The Company recorded $1.5 million in syndication fees in income from sales of state tax credits during the fourth quarter of 2013.

•

The net interest margin for the quarter ended March 31, 2014 was 3.30%, an increase of 4 basis points on a linked-quarter basis, and an increase of 12 basis points from the first quarter of 2013.

•

The Company’s cost of deposits for the first quarter of 2014 was 1.57%, a decrease of 4 basis points compared to the same quarter of 2013.

Loans

The Company’s loans totaled $2.5 billion at March 31, 2014, an increase of $113.2 million, or 4.8%, from December 31, 2013. Loan growth continues to be driven primarily by increases in construction, commercial real estate and commercial loans due to favorable economic market conditions in the New Orleans trade area. The growth in commercial loans was due in part to the growth in the oil and gas industry, specifically the oil and gas service companies, which has resulted in strong commercial loan demand. The Company has consistently experienced double-digit loan growth over each of the last five years and, based on conditions within the Company’s markets, the Company expects to achieve similar growth results in 2014.

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

	March 31,		December 31,		Increase (Decrease)					March 31,		Increase (Decrease)
(dollars in thousands)	2014		2013		Amount		Percent			2013		Amount		Percent

Construction	$	237,190	$	212,430	$	24,760		11.7	%	$	169,463	$	67,727		40.0	%
Commercial real estate		1,145,380		1,128,181		17,199		1.5			1,035,097		110,283		10.7
Consumer real estate		122,005		117,653		4,352		3.7			103,975		18,030		17.3
Commercial		948,029		883,111		64,918		7.4			664,955		283,074		42.6
Consumer		18,359		16,402		1,957		11.9			14,820		3,539		23.9
Total loans	$	2,470,963	$	2,357,777	$	113,186		4.8	%	$	1,988,310	$	482,653		24.3	%

Deposits

Total deposits at March 31, 2014 were $2.9 billion, an increase of $158.6 million, or 5.8%, from December 31, 2013. The increase was driven primarily by an increase in noninterest-bearing demand deposits of $39.3 million, or 13.5%, and money market deposit accounts of $105.6 million, or 16.1%, from December 31, 2013. The increase in noninterest-bearing demand deposits was primarily due to an increase in commercial customer deposits which has occurred with the expansion of the Company’s commercial lending. The implementation of tiered pricing on the Company’s interest-bearing deposit accounts resulted in a shift by customers from NOW accounts to money market deposits.

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

	March 31,		December 31,		Increase (Decrease)					March 31,		Increase (Decrease)
(dollars in thousands)	2014		2013		Amount		Percent			2013		Amount			Percent

Noninterest-bearing demand	$	330,395	$	291,080	$	39,315		13.5	%	$	230,712	$	99,683			43.2	%
NOW accounts		522,241		511,620		10,621		2.1			507,455		14,786			2.9
Money market deposits		760,765		655,173		105,592		16.1			371,167		389,598			105.0
Savings deposits		54,852		53,779		1,073		2.0			47,793		7,059			14.8
Certificates of deposits		1,221,183		1,219,155		2,028		0.2			1,225,458		(4,275	)		(0.4	)
Total deposits	$	2,889,436	$	2,730,807	$	158,629		5.8	%	$	2,382,585	$	506,851			21.3	%

Net Interest Income

Net interest income for the first quarter of 2014 totaled $24.8 million, an increase of $0.7 million, or 3.1%, from the linked-quarter and an increase of $5.2 million, or 26.2%, from the three month period ended March 31, 2013.

The Company’s net interest margin was 3.30% for the quarter ended March 31, 2014, which was 12 basis points higher than the first quarter of 2013. The net interest margin increased 4 basis points compared to the linked-quarter. The impact of the hedge executed by the Company during September 2013 was an increase in the margin for the first quarter of 2014 and the linked-quarter of 9 basis points, respectively. The cost of deposits decreased 4 basis points compared to the first quarter of 2013. The Company expects these positive net interest margin trends to continue in 2014 due to the implementation of tiered pricing on all of its deposit products in the third and fourth quarters of 2013 as well as the tiered pricing of its certificate of deposit products which will reduce the average yield as they begin to mature in 2014.

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
	March 31, 2014					December 31, 2013					March 31, 2013
(dollars in thousands)	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
Interest-earning assets:
Short-term investments	$	29,961		0.22	%	$	41,826		0.22	%	$	31,490		0.22	%
Investment in short-term receivables		237,514		2.89			229,197		3.26			115,365		2.59
Investment securities		369,966		2.58			386,183		2.45			388,122		1.70
Loans		2,414,495		5.22			2,276,661		5.25			1,973,268		5.38

Total interest-earning assets	$	3,051,936		4.67		$	2,933,867		4.66		$	2,508,245		4.62

Interest-bearing liabilities:
Savings	$	53,219		0.81		$	53,856		0.70		$	46,308		0.64
Money market deposits		711,261		1.41			600,943		1.43			376,148		1.50
NOW accounts		518,275		1.13			525,697		1.17			473,220		1.32
Certificates of deposit under $100,000		380,367		1.61			398,707		1.61			428,923		1.57
Certificates of deposit of $100,000 or more		658,374		1.94			666,125		1.95			577,644		1.85
CDARS®		178,935		2.19			178,359		2.16			163,943		2.21

Total interest-bearing deposits	$	2,500,431		1.57		$	2,423,687		1.58		$	2,066,186		1.61
Fed funds purchased and repurchase agreements		82,931		1.49			79,237		1.48			58,990		1.30
Other borrowings		58,757		2.41			55,202		2.65			99,720		2.08

Total interest-bearing liabilities	$	2,642,119		1.58		$	2,558,126		1.60		$	2,224,896		1.62

Net interest spread				3.09	%				3.06	%				3.00	%
Net interest margin				3.30	%				3.26	%				3.18	%

Noninterest Income

Noninterest income for the first quarter of 2014 totaled $3.4 million, an increase of $0.5 million, or 19.3%, compared to the first quarter of 2013. The increase in noninterest income for the first quarter of 2014 compared to the first quarter of 2013 resulted primarily from increases of $0.6 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 in 2013, and $0.3 million in CDE fees earned, partially offset by a decrease of $0.3 million in securities gains. Noninterest income, excluding securities gains, for the quarter ended March 31, 2014, increased $0.8 million compared to the same quarter of 2013.

Noninterest income decreased $2.0 million, or 37.8%, compared to the fourth quarter of 2013. The decrease was due primarily to decreases of $0.8 million in gains on other assets sold, $0.5 million in gains on sales of loans, $0.6 million in income from sales of state tax credits, and $0.5 million in CDE fees earned.

The Company’s results are impacted on a quarterly basis by seasonal factors related to its participation in federal and state tax credit programs. The notification of an allocation by the Community Development Financial Institutions Fund (CDFI) of the U.S. Treasury of Federal New Markets Tax Credits (NMTC) is typically made in the spring of each year and the release of the credits is in the later part of the third quarter. Because of this timing, the allocation of Federal NMTC by the Company to qualifying projects occurs primarily in the fourth quarter of the year with some transactions occurring in the first quarter of the next year. The Company’s fee income reflects this timing as it earns fees as each project closes; the fee is a percentage of the award. The Company recognizes the fees related to tax credit projects when they are earned. The Company recognized $0.6 million in Community Development Entity (CDE) fees during the first quarter of 2014, compared to $1.1 million during the fourth quarter of 2013, a decrease of $0.5 million, or 58.8%. The decrease on a linked-quarter is due to this seasonality.

Noninterest Expense

Noninterest expense for the three month period ended March 31, 2014 totaled $17.3 million, a decrease of $2.0 million, or 10.7%, compared to the linked-quarter, and an increase of $1.7 million, or 10.9%, compared to three month period ended March 31, 2013. The increase over the prior year three month period was due primarily to increases in tax credit amortization of $1.0 million and professional fees of $0.5 million.

The decrease in noninterest expense compared to the linked-quarter resulted primarily from decreases in salaries and benefits expense of $1.8 million, professional fees of $0.3 million, and advertising and marketing of $0.4 million, offset by an increase in tax credit amortization of $0.5 million. The decrease in salaries and benefits expense compared to the linked-quarter was primarily due to an increase in 2013 bonus accrual due to the Company’s strong fourth quarter 2013 results.

Taxes

The Company’s tax benefit for the quarter ended March 31, 2014 was $5.0 million, an increase of $0.9 million compared to the prior year three month period, and a decrease of $0.9 million compared to the linked-quarter. The increase compared to the prior year first quarter was due to the increase in the Company’s investment in various tax credit programs. The decrease from the linked-quarter of 2013 was due primarily to the change in the effective rate for the first quarter of 2014.

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 $395.4 million at March 31, 2014, an increase of $13.5 million from December 31, 2013. The increase was primarily attributable to the Company’s retained earnings over the period.

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 481 employees at March 31, 2014.

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. Among other things, management utilizes a non-GAAP performance measure to adjust noninterest income to reflect the effect of the federal income tax credits generated from the Company’s investment in tax credit entities, offset by the direct costs associated with the tax credit investments, to derive at an adjusted income before income taxes non-GAAP measure. Management also utilizes non-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 Annual Report on Form 10-K for the fiscal year end December 31, 2013, and other reports and statements the Company has subsequently 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)	March 31, 2014			December 31, 2013
Assets
Cash and due from banks	$	57,417		$	28,140
Short-term investments		63,872			3,502
Investment in short-term receivables		237,656			246,817
Investment securities available for sale, at fair value		271,166			277,719
Investment securities held to maturity		94,167			94,904
Mortgage loans held for sale		5,328			6,577
Loans, net of allowance for loan losses of $34,465 and $32,143, respectively		2,436,498			2,325,634
Bank premises and equipment, net		51,981			51,174
Accrued interest receivable		11,152			10,994
Goodwill and other intangible assets		8,283			8,433
Investment in real estate properties		10,838			10,147
Investment in tax credit entities		121,389			117,684
Cash surrender value of bank-owned life insurance		26,345			26,187
Other real estate		4,060			3,733
Deferred tax asset		56,297			51,191
Other assets		25,843			23,781
Total assets	$	3,482,292		$	3,286,617

Liabilities and equity
Deposits:
Noninterest-bearing	$	330,395		$	291,080
Interest-bearing		2,559,041			2,439,727

Total deposits		2,889,436			2,730,807
Short-term borrowings		-			8,425
Repurchase agreements		106,806			75,957
Long-term borrowings		55,110			55,110
Accrued interest payable		6,777			6,682
Other liabilities		28,774			27,777
Total liabilities		3,086,903			2,904,758
Shareholders’ equity:
Preferred stock
Convertible preferred stock Series C – no par value; 1,680,219 shares authorized; 364,983 shares issued and outstanding at March 31, 2014 and December 31, 2013		4,471			4,471
Preferred stock Series D – no par value; 37,935 shares authorized, issued and outstanding at March 31, 2014 and December 31, 2013		37,935			37,935
Common stock- par value $1 per share; 100,000,000 shares authorized; 18,521,831 shares issued and outstanding at March 31, 2014 and 18,514,271 shares issued and outstanding at December 31, 2013		18,522			18,514
Additional paid-in capital		237,520			237,063
Accumulated earnings		113,124			100,389
Accumulated other comprehensive loss, net		(16,185	)		(16,515	)
Total shareholders’ equity		395,387			381,857
Noncontrolling interest		2			2
Total equity		395,389			381,859
Total liabilities and equity	$	3,482,292		$	3,286,617

FIRST NBC BANK HOLDING COMPANY

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the Three Months Ended
	March 31,
(In thousands, except per share data)	2014			2013
Interest income:
Loans, including fees	$	31,099		$	26,195
Investment securities		2,352			1,631
Investment in short-term receivables		1,695			737
Short-term investments		15			17
		35,161			28,580

Interest expense:
Deposits		9,659			8,193
Borrowings and securities sold under repurchase agreements		654			700
		10,313			8,893

Net interest income		24,848			19,687
Provision for loan losses		3,000			2,600
Net interest income after provision for loan losses		21,848			17,087

Noninterest income:
Service charges on deposit accounts		559			498
Investment securities gain, net		-			306
Gain on assests sold, net		75			163
Gain on sale of loans, net		-			223
Cash surrender value income on bank-owned life insurance		159			178
Income from sales of state tax credits		1,033			455
Community Development Entity fees earned		679			353
ATM fee income		473			439
Other		381			212
		3,359			2,827

Noninterest expense:
Salaries and employee benefits		5,397			5,607
Occupancy and equipment expenses		2,584			2,529
Professional fees		1,899			1,416
Taxes, licenses and FDIC assessments		1,199			1,058
Tax credit investment amortization		2,827			1,788
Write-down of other real estate		166			51
Data processing		1,098			1,048
Advertising and marketing		578			457
Other		1,589			1,689
		17,337			15,643
Income before income taxes		7,870			4,271
Income tax (benefit) expense		(4,958	)		(4,013	)
Net income		12,828			8,284
Less net income attributable to noncontrolling interests		-			-
Net income attributable to Company		12,828			8,284
Less preferred stock dividends		(95	)		(95	)
Less earnings allocated to participating securities		(246	)		(538	)
Income available to common shareholders	$	12,487		$	7,651
Earnings per common share – basic	$	0.68		$	0.59
Earnings per common share – diluted	$	0.66		$	0.58

FIRST NBC BANK HOLDING COMPANY

EARNINGS PER COMMON SHARE

	For the Three Months Ended March 31,
(In thousands, except per share data)	2014		2013

Basic: Income available to common shareholders	$	12,487	$	7,651

Weighted-average common shares outstanding		18,509,355		13,037,744

Basic earnings per share	$	0.68	$	0.59

Diluted: Income available to common shareholders	$	12,487	$	7,651

Weighted-average common shares outstanding		18,509,355		13,037,744
Effect of dilutive securities:
Stock options outstanding		407,950		159,515
Warrants		118,897		60,170

Weighted-average common shares outstanding – assuming dilution		19,036,202		13,257,429

Diluted earnings per share	$	0.66	$	0.58

FIRST NBC BANK HOLDING COMPANY

SUMMARY FINANCIAL INFORMATION

	For the Three Months Ended									For the Three Months Ended
	March 31,						%			December 31,			%
(In thousands, except per share data)	2014			2013			Change			2013			Change

EARNINGS DATA

Total interest income	$	35,161		$	28,580			23.0	%	$	34,437			2.1	%
Total interest expense		10,313			8,893			16.0			10,326			(0.1	)

Net interest income		24,848			19,687			26.2			24,111			3.1

Provision for loan losses		3,000			2,600			15.4			2,400			25.0

Total noninterest income		3,359			2,827			18.8			5,401			(37.8	)

Total noninterest expense		17,337			15,643			10.8			19,423			(10.7	)

Income before income taxes		7,870			4,271			84.3			7,689			2.4

Income tax benefit		(4,958	)		(4,013	)		23.5			(5,867	)		(15.5	)

Net income		12,828			8,284			54.9			13,556			(5.4	)

Net income attributable to noncontrolling interest		-			-			-			-			-
Preferred stock dividends		(95	)		(95	)		-			(95	)		-
Earnings allocated to participating securities		(246	)		(538	)		(54.3	)		(468	)		(47.4	)

Net income available to common shareholders	$	12,487		$	7,651			63.2		$	12,993			(3.9	)

AVERAGE BALANCE SHEET DATA
Total assets	$	3,366,096		$	2,722,037			23.7	%	$	3,209,664			4.9	%
Total interest-earning assets		3,051,936			2,508,245			21.7			2,933,867			4.0
Total loans		2,414,495			1,973,268			22.4			2,276,661			6.1
Total interest-bearing deposits		2,500,431			2,066,185			21.0			2,423,687			3.2
Total interest-bearing liabilities		2,642,119			2,224,895			18.8			2,558,126			3.3
Total deposits		2,802,074			2,293,778			22.2			2,670,089			4.9
Total shareholders' equity		387,397			250,648			54.6			369,743			4.8

SELECTED RATIOS(1)
Return on average common equity		15.08	%		16.68	%					16.77	%
Return on average equity		13.43			13.40						14.55
Return on average assets		1.55			1.23						1.68
Net interest margin		3.30			3.18						3.26
Efficiency ratio(2)		61.46			69.48						65.81
Tier 1 leverage capital ratio(3)		10.60			9.73						10.96
Total Tier 1 risk-based capital ratio(3)		11.80			11.88						12.34
Total risk-based capital ratio(3)		12.96			13.04						13.48

ASSET QUALITY RATIOS(1)
Nonperforming loans to total loans(4) (6)		0.81	%		1.22	%					0.76	%
Nonperforming assets to total assets(5)		0.69			1.05						0.67
Allowance for loan losses to total loans(6)		1.39			1.28						1.36
Allowance for loan losses to nonperforming loans(4)		172.99			105.47						178.34
Net charge-offs to average loans		0.03			0.21						0.22

_______________________________________

(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 First NBC 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

IMPACT OF INVESTMENT IN FEDERAL TAX CREDIT PROGRAMS

	For the Three Months Ended
	March 31,			December 31,			March 31,
(in thousands, except per share data)	2014			2013			2013

Income before income taxes:
Income before income taxes (GAAP)	$	7,870		$	7,689		$	4,271
Income adjustment before income taxes related to the impact of tax credit related activities (Non-GAAP)
Tax equivalent income associated with investment in federal tax credit programs(1)		10,544			10,371			8,176

Income before income taxes (Non-GAAP)		18,414			18,060			12,447
Income tax expense-adjusted (Non-GAAP)(2)		(5,586	)		(4,504	)		(4,163	)

Net income (GAAP)	$	12,828		$	13,556		$	8,284


Proforma income before investment in tax credit entities:
Income before income taxes (GAAP)	$	7,870		$	7,689		$	4,271
Proforma interest income adjustment
Proforma interest income related to investment in tax credit entities(3)		1,526			1,145			896
Noninterest expense adjustment(4)
Tax credit investment amortization(5)		2,827			2,344			1,788
Other direct expenses(6)		286			224			526
Pro forma income before income taxes (Non-GAAP)		12,509			11,402			7,481
Income tax expense-adjusted (Non-GAAP)(7)		(4,203	)		(3,643	)		(2,343	)

Proforma net income (Non-GAAP)	$	8,306		$	7,759		$	5,138

_______________________________________

(1)	Tax equivalent income associated with investment in federal tax credit programs represents the gross amount of tax benefit from federal tax credits.

(2)	Income tax expense is calculated on the adjusted non-GAAP effective tax rate for the Company of 30%, 25% and 33%, respectively, for the quarters ended March 31, 2014, December 31, 2013 and March 31, 2013.

(3)	Proforma interest income adjustment related to investment in tax credit entities is calculated based on the average investment in tax credit entities utilizing the average yield on loans had the investment in tax credit entities been invested in loans.

(4)

Noninterest expense adjustments related to the Company’s investment in federal tax credit programs are included as adjustments to income as if the Company had invested in loans instead of federal tax credit programs. These expenses are directly related to the Company’s investment in federal tax credit programs. Noninterest expense adjustments for direct expenses related to the Company’s investment in federal tax credit programs exclude general and administrative costs associated with the Company’s investment in federal tax credit programs.

(5)	Tax credit amortization represents the amount of amortization associated with the investment in federal tax credit programs over the tax credit compliance periods.

(6)	Other direct expenses represent fees and expenses incurred as a result of the Company’s investment in federal tax credit programs.

(7)	Income tax expense is calculated on the adjusted non-GAAP effective tax rate for the Company of 34%, 32% and 31%, respectively, for the quarters ended March 31, 2014, December 31, 2013 and March 31, 2013.

FIRST NBC BANK HOLDING COMPANY

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The Company recorded several items during the fourth quarter of 2013 and the first quarter of 2013 that impacted noninterest income: gain on the sale of investment securities, gain on the sale of OREO and gain on the sale of acquired impaired loans. The Company is presenting adjusted net income in the table below to eliminate the effects of the specified items.

	For the Three Months Ended
	March 31, 2014						December 31, 2013									March 31, 2013
	Dollar Amount						Dollar Amount									Dollar Amount
(In thousands, except per share data)	Pre-tax		After-tax(1)		Per share		Pre-tax			After-tax(1)			Per share			Pre-tax			After-tax(1)			Per share

Net income (GAAP)	$	7,870	$	12,828	$	0.68	$	7,689		$	13,556		$	0.71		$	4,271		$	8,284		$	0.59
Noninterest income adjustments

(Gain) on sale of investment securities		-		-		-		(10	)		(7	)		-			(306	)		(199	)		(0.02	)

(Gain) on sale of OREO		-		-		-		(1,012	)		(658	)		(0.04	)		-			-			-

(Gain) on sale of acquired impaired loans(2)		-		-		-		(327	)		(212	)		(0.01	)		-			-			-

Adjusted net income (Non-GAAP)	$	7,870	$	12,828	$	0.68	$	6,340		$	12,679		$	0.66		$	3,965		$	8,085		$	0.57

_______________________________________

(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 Central Progressive Bank acquisition in November 2011.

First NBC Bank Holding Co - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 1, 2014

Attached files

First NBC Bank Holding Co Reports