Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - FIRST SECURITY GROUP INC/TN | a20150805_financials.htm |
| EX-99.1 - EXHIBIT 99.1 - FIRST SECURITY GROUP INC/TN | a20150805earningsdoc.htm |
| 8-K - 8-K - FIRST SECURITY GROUP INC/TN | a20150805_8kshellearnings.htm |
First Security Group, Inc. and Subsidiary
Consolidated Financial Highlights
(unaudited)
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | As of and for the six months ended June 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||
(in thousands, except per share amounts and full-time equivalent employees) | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||
Net interest income | $ | 8,258 | $ | 8,332 | $ | 7,944 | $ | 8,487 | $ | 7,545 | $ | 16,590 | $ | 14,470 | ||||||||
Provision (credit) for loan and lease losses | $ | 643 | $ | 707 | $ | (221 | ) | $ | 11 | $ | (270 | ) | $ | 1,350 | $ | (1,242 | ) | |||||
Non-interest income1 | $ | 1,881 | $ | 4,481 | $ | 3,788 | $ | 2,805 | $ | 3,030 | $ | 6,362 | $ | 5,665 | ||||||||
Non-interest expense1 | $ | 10,148 | $ | 11,421 | $ | 10,900 | $ | 10,222 | $ | 10,101 | $ | 21,569 | $ | 20,546 | ||||||||
Income tax provision | $ | 145 | $ | 145 | $ | 131 | $ | 132 | $ | 131 | $ | 290 | $ | 263 | ||||||||
Net (loss) income | $ | (797 | ) | $ | 540 | $ | 922 | $ | 927 | $ | 613 | $ | (257 | ) | $ | 568 | ||||||
Earnings - Normalized: | ||||||||||||||||||||||
Non-interest expense, excluding merger-related expenses | $ | 9,632 | $ | 11,330 | $ | 10,900 | $ | 10,222 | $ | 10,101 | $ | 20,962 | $ | 20,546 | ||||||||
Net (loss) income, excluding merger-related expenses | $ | (281 | ) | $ | 631 | $ | 922 | $ | 927 | $ | 613 | $ | 350 | $ | 568 | |||||||
Per Share Data: | ||||||||||||||||||||||
Net (loss) income, basic | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | ||||||
Net (loss) income, diluted | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | ||||||
Book value per common share | $ | 1.36 | $ | 1.36 | $ | 1.35 | $ | 1.32 | $ | 1.30 | $ | 1.36 | $ | 1.30 | ||||||||
Per Share Data - Normalized: | ||||||||||||||||||||||
Net income (loss) excluding merger-related expense, basic | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
Net income (loss) excluding merger-related expense, diluted | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
Performance Ratios: | ||||||||||||||||||||||
Return on average assets | (0.29 | )% | 0.20 | % | 0.36 | % | 0.36 | % | 0.24 | % | (0.05 | )% | 0.12 | % | ||||||||
Return on average equity | (3.49 | )% | 2.38 | % | 4.13 | % | 4.23 | % | 2.86 | % | (0.56 | )% | 1.34 | % | ||||||||
Efficiency ratio | 100.09 | % | 89.14 | % | 92.91 | % | 90.52 | % | 95.52 | % | 93.97 | % | 102.04 | % | ||||||||
Non-interest income to net interest income and non-interest income | 18.55 | % | 34.97 | % | 32.29 | % | 24.84 | % | 28.65 | % | 27.72 | % | 28.14 | % | ||||||||
Capital: | ||||||||||||||||||||||
Total equity to total assets | 8.25 | % | 8.56 | % | 8.41 | % | 8.56 | % | 8.55 | % | 8.25 | % | 8.55 | % | ||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | As of and for the six months ended June 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||
(in thousands, except per share amounts and full-time equivalent employees) | ||||||||||||||||||||||
Liquidity, Yields and Rates: | ||||||||||||||||||||||
Interest-bearing cash - average balance | $ | 16,151 | $ | 11,211 | $ | 9,757 | $ | 8,436 | $ | 8,997 | $ | 13,695 | $ | 11,312 | ||||||||
Investment securities - average balance | 208,105 | 215,693 | 225,253 | 230,297 | 247,459 | 211,878 | 259,941 | |||||||||||||||
Loans - average balance | 775,608 | 758,215 | 718,917 | 702,271 | 673,175 | 766,960 | 638,927 | |||||||||||||||
Average Earning Assets | $ | 999,864 | $ | 985,119 | $ | 953,927 | $ | 941,004 | $ | 929,631 | $ | 992,533 | $ | 910,180 | ||||||||
Pure deposits2 - average balance | $ | 546,446 | $ | 537,543 | $ | 525,691 | $ | 493,707 | $ | 455,407 | $ | 542,019 | $ | 451,138 | ||||||||
Core deposits3 - average balance | 693,183 | 687,403 | 680,008 | 654,893 | 622,636 | 690,309 | 623,496 | |||||||||||||||
Customer deposits4 - average balance | 811,892 | 805,054 | 802,837 | 783,996 | 757,704 | 808,492 | 765,477 | |||||||||||||||
Brokered deposits - average balance | 114,895 | 109,734 | 83,490 | 85,369 | 84,021 | 112,328 | 77,150 | |||||||||||||||
Total deposits - average balance | $ | 926,787 | $ | 914,788 | $ | 886,327 | $ | 869,365 | $ | 841,725 | $ | 920,820 | $ | 842,627 | ||||||||
Total loans to total deposits | 82.94 | % | 79.53 | % | 73.28 | % | 75.85 | % | 76.01 | % | 82.94 | % | 76.01 | % | ||||||||
Yield on earning assets | 3.83 | % | 3.89 | % | 3.79 | % | 4.14 | % | 3.86 | % | 3.86 | % | 3.86 | % | ||||||||
Rate on customer deposits (including impact of non-interest bearing DDAs) | 0.37 | % | 0.36 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.39 | % | ||||||||
Cost of deposits | 0.45 | % | 0.46 | % | 0.49 | % | 0.55 | % | 0.59 | % | 0.46 | % | 0.62 | % | ||||||||
Rate on interest-bearing funding | 0.61 | % | 0.53 | % | 0.58 | % | 0.66 | % | 0.68 | % | 0.57 | % | 0.72 | % | ||||||||
Net interest margin, taxable equivalent | 3.33 | % | 3.45 | % | 3.32 | % | 3.60 | % | 3.30 | % | 3.39 | % | 3.26 | % | ||||||||
Non-Interest Income: | ||||||||||||||||||||||
Service charges on deposits | $ | 728 | $ | 674 | $ | 793 | $ | 778 | $ | 769 | $ | 1,402 | $ | 1,510 | ||||||||
POS fees | 466 | 422 | 426 | 436 | 439 | 888 | 840 | |||||||||||||||
BOLI | 232 | 210 | 235 | 234 | 235 | 442 | 586 | |||||||||||||||
Mortgage banking income | 241 | 212 | 357 | 462 | 279 | 453 | 459 | |||||||||||||||
Trust | 313 | 265 | 245 | 233 | 235 | 578 | 435 | |||||||||||||||
Net gains on sales of loans | 183 | 1,060 | 886 | 254 | 450 | 1,243 | 472 | |||||||||||||||
Interest rate swap gains | (635 | ) | 1,240 | 629 | 138 | 132 | 605 | 236 | ||||||||||||||
Other | 353 | 390 | 217 | 260 | 244 | 743 | 509 | |||||||||||||||
Net gains on securities available-for-sale | — | 8 | — | 10 | 247 | 8 | 618 | |||||||||||||||
Total Non-Interest Income | $ | 1,881 | $ | 4,481 | $ | 3,788 | $ | 2,805 | $ | 3,030 | $ | 6,362 | $ | 5,665 | ||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | As of and for the six months ended June 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||
(in thousands, except per share amounts and full-time equivalent employees) | ||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||
Salaries and benefits | $ | 5,319 | $ | 5,420 | $ | 5,576 | $ | 5,153 | $ | 5,225 | $ | 10,739 | $ | 10,499 | ||||||||
Occupancy | 772 | 798 | 732 | 814 | 776 | 1,570 | 1,596 | |||||||||||||||
Furniture and fixtures | 749 | 665 | 580 | 565 | 520 | 1,414 | 1,077 | |||||||||||||||
Professional fees | 1,392 | 605 | 888 | 658 | 690 | 1,997 | 1,289 | |||||||||||||||
FDIC insurance assessments | 240 | 242 | 336 | 336 | 336 | 482 | 647 | |||||||||||||||
Write-downs on OREO and repossessions | 20 | 143 | 59 | 289 | 76 | 163 | 385 | |||||||||||||||
Losses (Gains) on OREO, repossessions and fixed assets, net | 2 | 3 | (369 | ) | (113 | ) | (15 | ) | 5 | (5 | ) | |||||||||||
Non-performing asset expenses, net | 138 | 107 | 193 | 204 | 184 | 245 | 405 | |||||||||||||||
Data processing | 545 | 533 | 618 | 577 | 506 | 1,078 | 1,094 | |||||||||||||||
Communications | 139 | 116 | 120 | 129 | 147 | 255 | 297 | |||||||||||||||
Debit card fees | 262 | 244 | 307 | 244 | 232 | 506 | 490 | |||||||||||||||
Intangible asset amortization | 51 | 50 | 50 | 49 | 49 | 101 | 97 | |||||||||||||||
Printing and supplies | 133 | 136 | 147 | 144 | 150 | 269 | 357 | |||||||||||||||
Advertising | 150 | 153 | 147 | 140 | 135 | 303 | 269 | |||||||||||||||
Insurance | 244 | 295 | 296 | 295 | 303 | 539 | 628 | |||||||||||||||
Interest rate swap loss | (636 | ) | 1,240 | 629 | 138 | 138 | 604 | 242 | ||||||||||||||
Other | 628 | 671 | 591 | 600 | 649 | 1,299 | 1,179 | |||||||||||||||
Total Non-Interest Expense | $ | 10,148 | $ | 11,421 | $ | 10,900 | $ | 10,222 | $ | 10,101 | $ | 21,569 | $ | 20,546 | ||||||||
Asset Quality: | ||||||||||||||||||||||
Net charge-offs (recoveries) | $ | (344 | ) | $ | 561 | $ | (221 | ) | $ | 664 | $ | (470 | ) | $ | 217 | $ | (242 | ) | ||||
Net loan charge-offs (recoveries) to average loans, annualized | (0.18 | )% | 0.30 | % | (0.12 | )% | 0.38 | % | (0.28 | )% | 0.06 | % | (0.08 | )% | ||||||||
Non-accrual loans | $ | 6,745 | $ | 4,150 | $ | 4,348 | $ | 4,000 | $ | 4,891 | $ | 6,745 | $ | 4,891 | ||||||||
Other real estate owned and repossessed assets, net | $ | 4,441 | $ | 4,207 | $ | 4,519 | $ | 5,960 | $ | 7,725 | $ | 4,441 | $ | 7,725 | ||||||||
Loans 90 days past due | $ | 1,416 | $ | 347 | $ | 100 | $ | 1,951 | $ | 1,083 | $ | 1,416 | $ | 1,083 | ||||||||
Non-performing assets (NPA) | $ | 12,602 | $ | 8,704 | $ | 8,967 | $ | 11,911 | $ | 13,699 | $ | 12,602 | $ | 13,699 | ||||||||
NPA to total assets | 1.15 | % | 0.82 | % | 0.84 | % | 1.16 | % | 1.35 | % | 1.15 | % | 1.35 | % | ||||||||
Non-performing loans (NPL) | $ | 8,161 | $ | 4,497 | $ | 4,448 | $ | 5,951 | $ | 5,974 | $ | 8,161 | $ | 5,974 | ||||||||
NPL to total loans | 1.07 | % | 0.61 | % | 0.67 | % | 0.89 | % | 0.91 | % | 1.07 | % | 0.91 | % | ||||||||
Allowance for loan and lease losses to total loans | 1.26 | % | 1.18 | % | 1.29 | % | 1.29 | % | 1.43 | % | 1.26 | % | 1.43 | % | ||||||||
Allowance for loan and lease losses to NPL | 117.63 | % | 192.35 | % | 192.22 | % | 144.51 | % | 157.35 | % | 117.63 | % | 157.35 | % | ||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | As of and for the six months ended June 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||
(in thousands, except per share amounts and full-time equivalent employees) | ||||||||||||||||||||||
Period End Balances: | ||||||||||||||||||||||
Loans, excluding HFS | $ | 764,411 | $ | 734,478 | $ | 663,622 | $ | 666,728 | $ | 659,539 | $ | 764,411 | $ | 659,539 | ||||||||
Allowance for loan and lease losses | $ | 9,600 | $ | 8,650 | $ | 8,550 | $ | 8,600 | $ | 9,400 | $ | 9,600 | $ | 9,400 | ||||||||
Loans held-for-sale | $ | 36,107 | $ | 23,347 | $ | 72,242 | $ | 46,904 | $ | 28,547 | $ | 36,107 | $ | 28,547 | ||||||||
Intangible assets | $ | 34 | $ | 84 | $ | 134 | $ | 184 | $ | 233 | $ | 34 | $ | 233 | ||||||||
Assets | $ | 1,098,909 | $ | 1,059,278 | $ | 1,070,244 | $ | 1,027,882 | $ | 1,012,685 | $ | 1,098,909 | $ | 1,012,685 | ||||||||
Deposits | $ | 921,686 | $ | 923,552 | $ | 905,613 | $ | 879,029 | $ | 867,709 | $ | 921,686 | $ | 867,709 | ||||||||
Total shareholders' equity | $ | 90,622 | $ | 90,726 | $ | 89,980 | $ | 87,963 | $ | 86,566 | $ | 90,622 | $ | 86,566 | ||||||||
Common stock market capitalization | $ | 163,689 | $ | 160,332 | $ | 151,027 | $ | 132,315 | $ | 144,594 | $ | 163,689 | $ | 144,594 | ||||||||
Full-time equivalent employees | 265 | 262 | 268 | 264 | 264 | 265 | 264 | |||||||||||||||
Common shares outstanding | 66,812 | 66,805 | 66,826 | 66,826 | 66,633 | 66,812 | 66,633 | |||||||||||||||
Average Balances: | ||||||||||||||||||||||
Loans, including HFS | $ | 775,608 | $ | 758,215 | $ | 718,917 | $ | 702,271 | $ | 673,175 | $ | 766,960 | $ | 638,927 | ||||||||
Intangible assets | $ | 66 | $ | 116 | $ | 166 | $ | 217 | $ | 265 | $ | 91 | $ | 289 | ||||||||
Earning assets | $ | 999,864 | $ | 985,119 | $ | 953,927 | $ | 941,004 | $ | 929,631 | $ | 992,533 | $ | 910,180 | ||||||||
Assets | $ | 1,085,206 | $ | 1,069,751 | $ | 1,033,327 | $ | 1,017,631 | $ | 1,006,143 | $ | 1,077,521 | $ | 986,988 | ||||||||
Deposits | $ | 926,787 | $ | 914,788 | $ | 886,327 | $ | 869,365 | $ | 841,725 | $ | 920,820 | $ | 842,627 | ||||||||
Total shareholders' equity | $ | 91,304 | $ | 90,923 | $ | 89,205 | $ | 87,656 | $ | 85,613 | $ | 91,115 | $ | 84,979 | ||||||||
Common shares outstanding, basic - wtd | 65,922 | 65,932 | 65,915 | 65,869 | 65,731 | 65,936 | 65,728 | |||||||||||||||
Common shares outstanding, diluted - wtd | 65,922 | 65,932 | 65,950 | 65,874 | 65,737 | 65,936 | 65,732 | |||||||||||||||
1 Certain amounts were reclassified between non-interest income and non-interest expense to conform with the current presentation. | ||||||||||||||||||||||
2 Pure deposits are all transaction-based accounts, including non-interest bearing DDAs, interest bearing DDAs, money market accounts and savings accounts. | ||||||||||||||||||||||
3 Core deposits are Pure deposits plus customer certificates of deposits less than $100,000. | ||||||||||||||||||||||
4 Customer deposits are total deposits less brokered deposits. | ||||||||||||||||||||||
2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | As of and for the six months ended June 30, | |||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||
(in thousands, except per share amounts and full-time equivalent employees) | ||||||||||||||||||||||
Non-GAAP Reconciliation Table | ||||||||||||||||||||||
Non-interest expense | $ | 10,148 | $ | 11,421 | $ | 10,900 | $ | 10,222 | $ | 10,101 | $ | 21,569 | $ | 20,546 | ||||||||
Merger-related expenses | 516 | 91 | — | — | — | 607 | — | |||||||||||||||
Non-interest expense, excluding merger-related expenses | $ | 9,632 | $ | 11,330 | $ | 10,900 | $ | 10,222 | $ | 10,101 | $ | 20,962 | $ | 20,546 | ||||||||
Net (loss) income | $ | (797 | ) | $ | 540 | $ | 922 | $ | 927 | $ | 613 | $ | (257 | ) | $ | 568 | ||||||
Merger-related expenses5 | 516 | 91 | — | — | — | 607 | — | |||||||||||||||
Net (loss) income, excluding merger-related expenses | $ | (281 | ) | $ | 631 | $ | 922 | $ | 927 | $ | 613 | $ | 350 | $ | 568 | |||||||
Net (loss) income, basic | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | ||||||
Impact of merger-related expenses | $ | (0.01 | ) | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | $ | — | ||||||
Net income (loss) excluding merger-related expense, basic | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
Net (loss) income, diluted | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | ||||||
Impact of merger-related expenses | $ | (0.01 | ) | $ | — | $ | — | $ | — | $ | — | $ | (0.01 | ) | $ | — | ||||||
Net income (loss) excluding merger-related expense, diluted | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
5 As First Security currently maintains a full valuation allowance for deferred taxes, the tax benefit of the merger-related expenses is fully offset through the valuation allowance. | ||||||||||||||||||||||