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| 8-K - 8-K - FIRST INTERSTATE BANCSYSTEM INC | fibk20150930-8k.htm |
For Immediate Release | ||||
Contact: | Marcy Mutch | NASDAQ: FIBK | ||
Chief Financial Officer First Interstate BancSystem, Inc. (406) 255-5322 investor.relations@fib.com | www.FIBK.com | |||
First Interstate BancSystem, Inc. Reports Improved Core Earnings
and Strong Loan Growth
Billings, MT - October 26, 2015 - First Interstate BancSystem, Inc. (NASDAQ: FIBK) reports third quarter 2015 net income of $20.2 million, or $0.44 per share. This compares to net income of $22.2 million, or $0.49 per share, during second quarter 2015, and $19.2 million, or $0.42 per share, during third quarter 2014. During third quarter 2015, the Company recorded non-core expenses of $5.6 million, including $5.0 million of legal and settlement expenses and $566 thousand of acquisition costs. Exclusive of non-core expenses, third quarter 2015 core net income was $23.6 million, or $0.52 per share, as compared to $22.2 million, or $0.49 per share, during second quarter 2015, and $22.3 million, or $0.49 per share, during third quarter 2014.
THIRD QUARTER HIGHLIGHTS
• | Core pre-tax, pre-provision net income of $36.9 million, a 5.2% increase over the prior quarter and a 6.7% increase from the same period in the prior year. |
• | Organic loan growth of 5.9% year-over-year, total loan growth of 6.6% year-over-year. |
• | Loan to deposit ratio of 73.6% as of September 30, 2015, compared to 69.8% a year ago. |
• | Net interest margin ratio of 3.47% was unchanged from the prior quarter. |
• | Improvement in non-performing assets, which declined to 0.90% of total assets as of September 30, 2015, as compared to 1.01% of total assets as of June 30, 2015. |
• | Successful completion of the acquisition of Absarokee Bancorporation, Inc. and integration of United Bank operations into First Interstate Bank. |
“We delivered a strong performance in the third quarter with positive trends across most areas of the Company,” said Kevin Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc. “Our loan growth was solid across most of the major portfolios. We had strong deposit inflows, good expense management and further improvement in asset quality. As a result, we generated a 7% increase in core pre-tax, pre-provision income compared to the third quarter of 2014," Riley continued. "We also had a smooth integration of United Bank’s operations and we are realizing the synergies we projected for this acquisition. We are continuing to see good loan demand entering the fourth quarter, which should help us to deliver future strong performance for our shareholders,” said Riley.
DIVIDEND DECLARATION
On October 6, 2015, the Executive Committee of the Company's Board of Directors declared a dividend of $0.20 per common share payable on November 13, 2015 to shareholders of record as of November 2, 2015. This dividend equates to a 2.9% annual yield based on the $27.41 average closing price of the Company's common stock during third quarter 2015.
1
ACQUISITION
On March 26, 2015, the Company entered into an agreement and plan of merger to acquire all of the outstanding stock of Absarokee Bancorporation, Inc. ("Absarokee"), a Montana-based bank holding company that operated one subsidiary bank, United Bank, with branches located in three Montana communities adjacent to the Company's existing market areas. The acquisition was completed on July 24, 2015 for cash consideration of $7.2 million. Immediately subsequent to the acquisition, United Bank was merged with and into the Company's existing bank subsidiary, First Interstate Bank. As of the date of the acquisition, Absarokee had total assets of $73 million, loans of $38 million and deposits of $64 million.
RESULTS OF OPERATIONS
Net Interest Income. The Company's net interest income, on a fully taxable equivalent basis, increased $1.0 million to $67.4 million during third quarter 2015, as compared to $66.4 million during second quarter 2015, primarily due to the combined impact of one additional accrual day during the third quarter, loan growth and a shift in the mix of interest earning assets from lower yielding investment securities to higher yielding loans.
The yield on average loans decreased 6 basis points to 4.83% during the third quarter of 2015, as compared to 4.89% during second quarter 2015, partially due to quarter-over-quarter reductions in recoveries of charged-off interest and interest accretion related to the early pay-off of acquired loans. The impact of the reduction in loan yield was more than offset by a 3.0% increase in average loans outstanding during third quarter 2015, as compared to second quarter 2015. Interest accretion related to the fair valuation of acquired loans contributed $1.4 million of interest income during third quarter 2015, of which $307 thousand was related to early payoffs. This compares to interest accretion of $1.6 million of interest income during second quarter 2015, of which $470 thousand was related to early payoffs. Recoveries of charged-off loan interest were $679 during third quarter 2015, as compared to $753 during second quarter 2015.
The Company's net interest margin ratio remained stable at 3.47% during the second and third quarters of 2015. Exclusive of the accelerated interest accretion related to early payoffs of acquired loans and the impact of recoveries of charged-off interest, the Company's net interest margin ratio increased 2 basis points to 3.42% during third quarter 2015, as compared to 3.40% during second quarter 2015, due to a shift in the mix of interest earning assets from lower yielding investment securities to higher yielding loans.
Non-Interest Income. Non-interest income decreased $1.3 million, or 4.1%, to $30.5 million during third quarter 2015, as compared to $31.8 million during second quarter 2015, primarily due to decreases in other income and income from the origination and sale of mortgage loans.
Other income decreased $1.0 million, or 36.8%, to $1.8 million during third quarter 2015, as compared to $2.8 million during second quarter 2015. Included in second quarter 2015 other income was a one-time gain of $863 thousand on the sale of land. In addition, reductions in deferred compensation plan returns also contributed to the decrease in other income during third quarter 2015, as compared to second quarter 2015.
Income from the origination and sale of loans decreased $819 thousand, or 9.3%, to $8.0 million during third quarter 2015, as compared to $8.8 million during second quarter 2015. Included in second quarter 2015 results was a $410 thousand gain on the sale of seasoned portfolio loans. Refinancing loans accounted for approximately 26% of the Company's loan production during third quarter 2015, as compared to 35% during second quarter 2015.
Partially offsetting decreases in other income and income from the origination and sale of loans were increases in service charges on deposit accounts and wealth management revenues. Service charges on deposit accounts increased $326 thousand, or 8.0%, to $4.4 million during third quarter 2015, compared to $4.1 million during second quarter 2015, primarily due to the implementation of revenue enhancement strategies.
Wealth management revenues increased $336 thousand, or 6.9%, to $5.2 million during third quarter 2015, as compared to $4.9 million during second quarter 2015. This increase was the result of the addition of new wealth management customers.
Non-Interest Expense. Non-interest expense increased $3.5 million, or 5.7%, to $65.5 million during third quarter 2015, as compared to $62.0 million during second quarter 2015.
During third quarter 2015, the Company recorded non-core expenses of $5.6 million, including $5.0 million of legal and settlement costs and $566 thousand of acquisition costs related to the Absarokee acquisition.
2
Salaries and wages expense decreased $633 thousand, or 2.4%, to $25.5 million during third quarter 2015, compared to $26.1 million during second quarter 2015, primarily due to lower incentive compensation accruals, which were partially offset by additional salaries and wages expense.
Employee benefits expense decreased $758 thousand, or 9.4%, to $7.3 million during third quarter 2015, as compared to $8.1 million during second quarter 2015, primarily due to reductions in deferred compensation plan returns and decreases in payroll taxes as employees meet compensation tax limits.
Other expenses decreased $705 thousand, or 4.2%, to $16.3 million during third quarter 2015, as compared to $17.0 million during second quarter 2015. During third quarter 2015, the Company recorded valuation write-downs aggregating $806 thousand related to two vacated bank buildings held for sale. These write-downs were partially offset by a decrease of $467 thousand in advertising expense due to timing of advertising campaigns and lower fraud losses, which declined $185 thousand during third quarter 2015, as compared to second quarter 2015. Second quarter 2015 other expenses included a one-time contract termination expense of $876 thousand related to a change in payment service provider.
BALANCE SHEET
Total assets increased $218 million, or 2.6%, to $8.6 billion as of September 30, 2015, from $8.4 billion as of June 30, 2015. Approximately $73 million of the increase was attributable to the Absarokee acquisition. The remaining increase was primarily due to the deployment of funds, which were generated primarily though organic deposit growth, into loans and interest bearing deposits in banks.
Total loans increased $73 million, or 1.4%, to $5.2 billion as of September 30, 2015, from $5.1 billion as of June 30, 2015. Approximately $38 million, or 50.4%, of this increase was attributable to the Absarokee acquisition. All major loan categories, except commercial loans, experienced organic growth.
Commercial real estate loans increased $47 million, or 2.7%, to $1,751 million as of September 30, 2015, from $1,704 million as of June 30, 2015. Approximately $12 million of the increase was attributable to the Absarokee acquisition. Management attributes the remaining organic growth in commercial real estate loans to continuing customer business expansion in the Company's market areas.
Construction real estate loans increased $16 million, or 4.0%, to $419 million as of September 30, 2015, from $403 million as of June 30, 2015, with approximately $1.2 million of the increase attributable to the Absarokee acquisition. The most notable growth occurred in residential construction loans, which grew $11 million, or 11.4%, to $112 million as of September 30, 2015, from $101 million as of June 30, 2015. Management attributes growth in residential construction loans to increased demand for housing in the Company's market areas.
Agricultural loans increased $12 million, or 8.6%, to $155 million as of September 30, 2015, from $143 million as of June 30, 2015. Approximately $7 million of the increase was attributable to Absarokee acquisition. The remaining organic growth in agricultural loans was primarily due to seasonal increases in credit lines.
Consumer loans grew $33 million or 4.1%, to $832 million as of September 30, 2015, from $799 million as of June 30, 2015, with approximately $3 million attributable to the Absarokee acquisition. Indirect consumer loans grew organically $27 million, or 4.5%, to $616 million as of September 30, 2015, from $589 million as of June 30, 2015, due to the combined impact of heightened consumer demand for recreational vehicles and increased dealer volume resulting from the Company's expansion efforts within its existing market areas.
Commercial loans decreased $40 million, or 4.9%, to $779 million as of September 30, 2015, from $819 million as of June 30, 2015. Exclusive of commercial loans acquired in the Absarokee acquisition, commercial loans decreased $45 million, or 5.4%, from June 30, 2015 to September 30, 2015, primarily due to the repayment of several loans due to business consolidations and seasonal pay-downs of existing credit lines.
Total deposits grew $231 million, or 3.4%, to $7.0 billion as of September 30, 2015, from $6.8 billion as of June 30, 2015. Exclusive of $64 million in deposits acquired in the Absarokee acquisition, total deposits returned to more normalized levels as of September 30, 2015, following a seasonal decline during second quarter 2015. As of September 30, 2015, the mix of total deposits was 26% non-interest bearing demand, 30% interest bearing demand, 27% savings and 17% time.
3
ASSET QUALITY
Non-performing assets declined $7 million, or 8.3%, to $78 million, or 0.90% of total assets, as of September 30, 2015, from $85 million, or 1.01% of total assets, as of June 30, 2015. Non-accrual loans decreased $5 million, or 6.3%, to $66 million as of September 30, 2015, from $71 million as of June 30, 2015, primarily due to the paydown of the loans of one commercial real estate borrower, the partial charge-off of the loans of one land development borrower and the upgrade of the loans of one commercial real estate borrower to accrual status.
OREO decreased $3.7 million, or 31.8%, to $8.0 million as of September 30, 2015, from $11.8 million as of June 30, 2015. During third quarter 2015, the Company recorded OREO additions of $984 thousand, wrote down the value of OREO properties by $73 thousand and sold OREO properties with carrying values of $4.7 million.
The Company recorded a provision for loan losses of $1.1 million during third quarter 2015, compared to $1.3 million during second quarter 2015. The lower provision for loan losses recorded during third quarter 2015, as compared to second quarter 2015, is reflective of the decline in non-performing and criticized loans combined with reductions in historical loss rates. The Company's allowance for loan losses as a percentage of period end loans declined slightly to 1.43% as of September 30, 2015, from 1.50% as of June 30, 2015, partially due to the acquisition of Absarokee loans, which were initially recorded at fair value with no carryover of the related allowance for loan losses.
STOCK REPURCHASE
Pursuant to a stock repurchase program approved by the Company's Board of Directors on January 22, 2015, the Company repurchased and retired 200,000 shares of it Class A common stock during third quarter 2015. These shares were purchased in open market transactions at an aggregate weighted average purchase price of $26.23 per share. On September 24, 2015, the Company's Board of Directors reauthorized the repurchase of up to one million shares of the Company's Class A common stock under the stock repurchase program.
Third Quarter 2015 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss third quarter 2015 results at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Tuesday, October 27, 2015. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-877-507-0356 or by logging on to www.FIBK.com. The call will be recorded and made available for replay after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time) on October 27, 2015 through 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) on November 26, 2015, by dialing 1-877-344-7529 (using conference ID 10073446). The call will also be archived on our website, www.FIBK.com, for one year.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial and bank holding company incorporated in 1971 and headquartered in Billings, Montana. The Company operates 81 banking offices, including detached drive-up facilities, in 45 communities in Montana, Wyoming and western South Dakota. Through First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities and other entities throughout the Company's market areas.
4
Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. Such statements are identified as those that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. The following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this report: continuing or worsening business and economic conditions, adverse economic conditions affecting Montana, Wyoming and western South Dakota, credit losses, lending risk, adequacy of the allowance for loan losses, impairment of goodwill, changes in interest rates, access to low-cost funding sources, dependence on the Company’s management team, ability to attract and retain qualified employees, governmental regulation and changes in regulatory, tax and accounting rules and interpretations, failure of technology, inability to meet liquidity requirements, failure to manage growth, competition, ineffective internal operational controls, environmental remediation and other costs, reliance on external vendors, litigation pertaining to fiduciary responsibilities, failure to effectively implement technology-driven products and services, soundness of other financial institutions, inability of our bank subsidiary to pay dividends, implementation of new lines of business or new product or service offerings, change in dividend policy, volatility of Class A common stock, decline in market price of Class A common stock, dilution as a result of future equity issuances, uninsured nature of any investment in Class A common stock, voting control of Class B stockholders, anti-takeover provisions, controlled company status, and subordination of common stock to Company debt.
These factors are not necessarily all of the factors that could cause our actual results, performance or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
First Interstate BancSystem, Inc.
P.O. Box 30918 Billings, Montana 59116 (406) 255-5390
www.FIBK.com
5
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Financial Summary
(Unaudited, $ in thousands, except per share data)
2015 | 2014 | |||||||||||||||||||
INCOME STATEMENT SUMMARIES | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
Net interest income | $ | 66,330 | $ | 65,288 | $ | 64,325 | $ | 65,516 | $ | 65,082 | ||||||||||
Net interest income on a fully-taxable equivalent ("FTE") basis | 67,400 | 66,399 | 65,381 | 66,585 | 66,129 | |||||||||||||||
Provision for loan losses | 1,098 | 1,340 | 1,095 | 118 | 261 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Other service charges, commissions and fees | 11,095 | 11,173 | 9,867 | 11,429 | 10,458 | |||||||||||||||
Income from the origination and sale of loans | 7,983 | 8,802 | 5,906 | 5,554 | 7,346 | |||||||||||||||
Wealth management revenues | 5,233 | 4,897 | 4,937 | 4,775 | 5,157 | |||||||||||||||
Service charges on deposit accounts | 4,379 | 4,053 | 3,944 | 4,432 | 4,331 | |||||||||||||||
Investment securities gains (losses), net | 23 | 46 | 6 | (19 | ) | (8 | ) | |||||||||||||
Other income | 1,769 | 2,799 | 3,122 | 5,190 | 2,079 | |||||||||||||||
Total non-interest income | 30,482 | 31,770 | 27,782 | 31,361 | 29,363 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and wages | 25,460 | 26,093 | 25,349 | 23,717 | 25,914 | |||||||||||||||
Employee benefits | 7,312 | 8,070 | 7,780 | 6,812 | 7,841 | |||||||||||||||
Occupancy, net | 4,413 | 4,529 | 4,492 | 4,770 | 4,534 | |||||||||||||||
Furniture and equipment | 3,849 | 3,703 | 3,793 | 4,120 | 3,338 | |||||||||||||||
Outsourced technology services | 2,520 | 2,593 | 2,463 | 2,468 | 2,346 | |||||||||||||||
Other real estate owned income, net | (720 | ) | (823 | ) | (61 | ) | (61 | ) | (58 | ) | ||||||||||
Core deposit intangible amortization | 842 | 855 | 854 | 855 | 688 | |||||||||||||||
Non-core expenses (income) | 5,566 | (7 | ) | 70 | 2,368 | 5,052 | ||||||||||||||
Other expenses | 16,260 | 16,965 | 14,852 | 16,604 | 15,303 | |||||||||||||||
Total non-interest expense | 65,502 | 61,978 | 59,592 | 61,653 | 64,958 | |||||||||||||||
Income before taxes | 30,212 | 33,740 | 31,420 | 35,106 | 29,226 | |||||||||||||||
Income taxes | 10,050 | 11,518 | 10,440 | 12,330 | 10,071 | |||||||||||||||
Net income | $ | 20,162 | $ | 22,222 | $ | 20,980 | $ | 22,776 | $ | 19,155 | ||||||||||
Core net income** | $ | 23,610 | $ | 22,189 | $ | 21,020 | $ | 24,260 | $ | 22,302 | ||||||||||
Core pre-tax, pre-provision net income** | $ | 36,853 | $ | 35,027 | $ | 32,579 | $ | 37,611 | $ | 34,547 | ||||||||||
PER COMMON SHARE DATA | ||||||||||||||||||||
Net income - basic | $ | 0.45 | $ | 0.49 | $ | 0.46 | $ | 0.50 | $ | 0.43 | ||||||||||
Net income - diluted | 0.44 | 0.49 | 0.46 | 0.49 | 0.42 | |||||||||||||||
Core net income - diluted | 0.52 | 0.49 | 0.46 | 0.53 | 0.49 | |||||||||||||||
Cash dividend paid | 0.20 | 0.20 | 0.20 | 0.16 | 0.16 | |||||||||||||||
Book value at period end | 20.70 | 20.32 | 20.13 | 19.85 | 19.40 | |||||||||||||||
Tangible book value at period end** | 15.94 | 15.58 | 15.36 | 15.07 | 14.61 | |||||||||||||||
OUTSTANDING COMMON SHARES | ||||||||||||||||||||
At period-end | 45,345,007 | 45,506,583 | 45,429,468 | 45,788,415 | 45,672,922 | |||||||||||||||
Weighted-average shares - basic | 45,150,104 | 45,143,122 | 45,378,230 | 45,485,548 | 44,911,858 | |||||||||||||||
Weighted-average shares - diluted | 45,578,978 | 45,606,686 | 45,840,191 | 46,037,344 | 45,460,288 | |||||||||||||||
SELECTED ANNUALIZED RATIOS | ||||||||||||||||||||
Return on average assets | 0.94 | % | 1.06 | % | 1.00 | % | 1.05 | % | 0.93 | % | ||||||||||
Core return on average assets** | 1.10 | 1.06 | 1.00 | 1.12 | 1.09 | |||||||||||||||
Return on average common equity | 8.60 | 9.68 | 9.38 | 10.09 | 8.55 | |||||||||||||||
Core return on average common equity** | 10.07 | 9.66 | 9.40 | 10.75 | 9.96 | |||||||||||||||
Return on average tangible common equity** | 11.20 | 12.65 | 12.35 | 13.34 | 11.17 | |||||||||||||||
Net FTE interest income to average earning assets | 3.47 | 3.47 | 3.43 | 3.38 | 3.55 | |||||||||||||||
Core efficiency ratio** | 61.12 | 63.14 | 63.04 | 59.71 | 62.07 | |||||||||||||||
6
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Financial Summary - continued
(Unaudited, $ in thousands)
2015 | 2014 | |||||||||||||||||||
BALANCE SHEET SUMMARIES | Sept 30 | Jun 30 | Mar 31 | Dec 31 | Sept 30 | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 708,295 | $ | 506,434 | $ | 637,803 | $ | 798,670 | $ | 819,963 | ||||||||||
Investment securities | 2,067,636 | 2,139,433 | 2,340,904 | 2,287,110 | 2,169,774 | |||||||||||||||
Loans held for investment: | ||||||||||||||||||||
Commercial real estate | 1,750,797 | 1,704,073 | 1,670,829 | 1,639,422 | 1,686,509 | |||||||||||||||
Construction real estate | 419,260 | 403,228 | 406,305 | 418,269 | 367,420 | |||||||||||||||
Residential real estate | 1,020,445 | 999,038 | 997,123 | 999,903 | 957,282 | |||||||||||||||
Agricultural real estate | 163,116 | 158,506 | 156,734 | 167,659 | 158,940 | |||||||||||||||
Consumer | 831,961 | 799,126 | 768,462 | 762,471 | 745,482 | |||||||||||||||
Commercial | 778,648 | 819,119 | 754,149 | 740,073 | 736,908 | |||||||||||||||
Agricultural | 154,855 | 142,629 | 117,569 | 124,859 | 136,587 | |||||||||||||||
Other | 1,712 | 2,905 | 377 | 3,959 | 2,316 | |||||||||||||||
Mortgage loans held for sale | 55,686 | 75,322 | 55,758 | 40,828 | 62,938 | |||||||||||||||
Total loans | 5,176,480 | 5,103,946 | 4,927,306 | 4,897,443 | 4,854,382 | |||||||||||||||
Less allowance for loan losses | 74,256 | 76,552 | 75,336 | 74,200 | 74,231 | |||||||||||||||
Net loans | 5,102,224 | 5,027,394 | 4,851,970 | 4,823,243 | 4,780,151 | |||||||||||||||
Premises and equipment, net | 190,386 | 189,488 | 192,748 | 195,212 | 207,181 | |||||||||||||||
Goodwill and intangible assets (excluding mortgage servicing rights) | 215,843 | 215,958 | 216,815 | 218,870 | 218,799 | |||||||||||||||
Company owned life insurance | 185,990 | 177,625 | 154,741 | 153,821 | 152,761 | |||||||||||||||
Other real estate owned, net | 8,031 | 11,773 | 15,134 | 13,554 | 18,496 | |||||||||||||||
Mortgage servicing rights, net | 15,336 | 14,654 | 14,093 | 14,038 | 13,894 | |||||||||||||||
Other assets | 110,789 | 103,459 | 104,334 | 105,418 | 100,333 | |||||||||||||||
Total assets | $ | 8,604,530 | $ | 8,386,218 | $ | 8,528,542 | $ | 8,609,936 | $ | 8,481,352 | ||||||||||
Liabilities and stockholders' equity: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing | $ | 1,832,535 | $ | 1,757,641 | $ | 1,757,664 | $ | 1,791,364 | $ | 1,637,151 | ||||||||||
Interest bearing | 5,203,259 | 5,046,760 | 5,210,495 | 5,214,848 | 5,322,348 | |||||||||||||||
Total deposits | 7,035,794 | 6,804,401 | 6,968,159 | 7,006,212 | 6,959,499 | |||||||||||||||
Securities sold under repurchase agreements | 437,533 | 469,145 | 462,073 | 502,250 | 432,478 | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | 67,062 | 62,272 | 58,335 | 72,006 | 63,713 | |||||||||||||||
Long-term debt | 43,089 | 43,068 | 43,048 | 38,067 | 36,882 | |||||||||||||||
Subordinated debentures held by subsidiary trusts | 82,477 | 82,477 | 82,477 | 82,477 | 102,916 | |||||||||||||||
Total liabilities | 7,665,955 | 7,461,363 | 7,614,092 | 7,701,012 | 7,595,488 | |||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Common stock | 309,167 | 313,125 | 310,544 | 323,596 | 321,132 | |||||||||||||||
Retained earnings | 623,967 | 612,875 | 599,727 | 587,862 | 572,362 | |||||||||||||||
Accumulated other comprehensive income (loss) | 5,441 | (1,145 | ) | 4,179 | (2,534 | ) | (7,630 | ) | ||||||||||||
Total stockholders' equity | 938,575 | 924,855 | 914,450 | 908,924 | 885,864 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 8,604,530 | $ | 8,386,218 | $ | 8,528,542 | $ | 8,609,936 | $ | 8,481,352 | ||||||||||
CONSOLIDATED CAPITAL RATIOS | ||||||||||||||||||||
Total risk-based capital | 15.25 | % | * | 15.37 | % | 15.43 | % | 16.15 | % | 16.34 | % | |||||||||
Tier 1 risk-based capital | 13.80 | * | 13.88 | 13.94 | 14.52 | 14.71 | ||||||||||||||
Tier 1 common capital to total risk-weighted assets | 12.49 | * | 12.55 | 12.58 | 13.08 | 12.89 | ||||||||||||||
Leverage Ratio | 10.13 | * | 10.11 | 9.73 | 9.61 | 10.42 | ||||||||||||||
Tangible common stockholders' equity to tangible assets** | 8.62 | 8.68 | 8.39 | 8.22 | 8.07 | |||||||||||||||
7
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Financial Summary - continued
(Unaudited, $ in thousands)
2015 | 2014 | |||||||||||||||||||
ASSET QUALITY | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |||||||||||||||
Allowance for loan losses | $ | 74,256 | $ | 76,552 | $ | 75,336 | $ | 74,200 | $ | 74,231 | ||||||||||
As a percentage of period-end loans | 1.43 | % | 1.50 | % | 1.53 | % | 1.52 | % | 1.53 | % | ||||||||||
Net charge-offs (recoveries) during quarter | $ | 3,394 | $ | 124 | $ | (41 | ) | $ | 149 | $ | 4,296 | |||||||||
Annualized as a percentage of average loans | 0.26 | % | 0.01 | % | — | % | 0.01 | % | 0.36 | % | ||||||||||
Non-performing assets: | ||||||||||||||||||||
Non-accrual loans | $ | 66,359 | $ | 70,848 | $ | 73,941 | $ | 62,182 | $ | 71,915 | ||||||||||
Accruing loans past due 90 days or more | 3,357 | 2,153 | 5,175 | 2,576 | 1,348 | |||||||||||||||
Total non-performing loans | 69,716 | 73,001 | 79,116 | 64,758 | 73,263 | |||||||||||||||
Other real estate owned | 8,031 | 11,773 | 15,134 | 13,554 | 18,496 | |||||||||||||||
Total non-performing assets | 77,747 | 84,774 | 94,250 | 78,312 | 91,759 | |||||||||||||||
As a percentage of: | ||||||||||||||||||||
Total loans and OREO | 1.50 | % | 1.66 | % | 1.91 | % | 1.59 | % | 1.88 | % | ||||||||||
Total assets | 0.90 | % | 1.01 | % | 1.11 | % | 0.91 | % | 1.08 | % | ||||||||||
ASSET QUALITY TRENDS | Provision for Loan Losses | Net Charge-offs (Recoveries) | Allowance for Loan Losses | Accruing Loans 30-89 Days Past Due | Accruing TDRs | Non-Performing Loans | Non-Performing Assets | ||||||||||||||||||||
Q3 2012 | $ | 9,500 | $ | 13,288 | $ | 99,006 | $ | 48,277 | $ | 35,428 | $ | 127,270 | $ | 167,241 | |||||||||||||
Q4 2012 | 8,000 | 6,495 | 100,511 | 34,602 | 31,932 | 110,076 | 142,647 | ||||||||||||||||||||
Q1 2013 | 500 | 3,107 | 97,904 | 41,924 | 35,787 | 100,535 | 133,005 | ||||||||||||||||||||
Q2 2013 | 375 | (249 | ) | 98,528 | 39,408 | 23,406 | 105,471 | 128,253 | |||||||||||||||||||
Q3 2013 | (3,000 | ) | 2,538 | 92,990 | 39,414 | 21,939 | 96,203 | 114,740 | |||||||||||||||||||
Q4 2013 | (4,000 | ) | 3,651 | 85,339 | 26,944 | 21,780 | 96,671 | 112,175 | |||||||||||||||||||
Q1 2014 | (5,000 | ) | (1,032 | ) | 81,371 | 41,034 | 19,687 | 89,778 | 106,372 | ||||||||||||||||||
Q2 2014 | (2,001 | ) | 1,104 | 78,266 | 24,250 | 23,531 | 80,660 | 97,085 | |||||||||||||||||||
Q3 2014 | 261 | 4,296 | 74,231 | 38,400 | 20,956 | 73,263 | 91,759 | ||||||||||||||||||||
Q4 2014 | 118 | 149 | 74,200 | 28,848 | 20,952 | 64,758 | 78,312 | ||||||||||||||||||||
Q1 2015 | 1,095 | (41 | ) | 75,336 | 40,744 | 16,070 | 79,116 | 94,250 | |||||||||||||||||||
Q2 2015 | 1,340 | 124 | 76,552 | 31,178 | 15,127 | 73,001 | 84,774 | ||||||||||||||||||||
Q3 2015 | 1,098 | 3,394 | 74,256 | 38,793 | 16,702 | 69,716 | 77,747 | ||||||||||||||||||||
CRITICIZED LOANS | Special Mention | Substandard | Doubtful | Total | |||||||||||
Q3 2012 | $ | 223,306 | $ | 229,826 | $ | 66,179 | $ | 519,311 | |||||||
Q4 2012 | 209,933 | 215,188 | 42,459 | 467,580 | |||||||||||
Q1 2013 | 197,645 | 197,095 | 43,825 | 438,565 | |||||||||||
Q2 2013 | 192,390 | 161,786 | 52,266 | 406,442 | |||||||||||
Q3 2013 | 180,850 | 168,278 | 42,415 | 391,543 | |||||||||||
Q4 2013 | 159,081 | 154,100 | 45,308 | 358,489 | |||||||||||
Q1 2014 | 174,834 | 161,103 | 31,672 | 367,609 | |||||||||||
Q2 2014 | 160,271 | 155,744 | 29,115 | 345,130 | |||||||||||
Q3 2014 | 156,469 | 156,123 | 39,450 | 352,042 | |||||||||||
Q4 2014 | 154,084 | 163,675 | 34,854 | 352,613 | |||||||||||
Q1 2015 | 140,492 | 156,887 | 37,476 | 334,855 | |||||||||||
Q2 2015 | 155,707 | 159,899 | 31,701 | 347,307 | |||||||||||
Q3 2015 | 155,157 | 163,846 | 24,547 | 343,550 | |||||||||||
*Preliminary estimate - may be subject to change.
**See Non-GAAP Financial Measures included herein for a discussion regarding core net income, pre-tax, pre-provision net income, tangible book value per common share, core return on average assets, core return on average common equity, return on average tangible common equity, tangible common stockholders' equity to tangible assets and core efficiency ratio.
8
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited, $ in thousands)
Three Months Ended | ||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||
Loans (1) (2) | $ | 5,141,484 | $ | 62,577 | 4.83 | % | $ | 4,991,416 | $ | 60,911 | 4.89 | % | $ | 4,751,928 | $ | 61,445 | 5.13 | % | ||||||||
Investment securities (2) | 2,097,835 | 8,927 | 1.69 | 2,319,636 | 9,642 | 1.67 | 2,094,449 | 8,953 | 1.70 | |||||||||||||||||
Interest bearing deposits in banks | 471,682 | 342 | 0.29 | 369,345 | 271 | 0.29 | 548,794 | 374 | 0.27 | |||||||||||||||||
Federal funds sold | 2,876 | 4 | 0.55 | 3,168 | 5 | 0.63 | 1,909 | 3 | 0.62 | |||||||||||||||||
Total interest earnings assets | 7,713,877 | 71,850 | 3.70 | 7,683,565 | 70,829 | 3.70 | 7,397,080 | 70,775 | 3.80 | |||||||||||||||||
Non-earning assets | 781,559 | 743,545 | 753,324 | |||||||||||||||||||||||
Total assets | $ | 8,495,436 | $ | 8,427,110 | $ | 8,150,404 | ||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||
Demand deposits | $ | 2,086,112 | $ | 528 | 0.10 | % | $ | 2,086,443 | $ | 524 | 0.10 | % | $ | 2,100,931 | $ | 532 | 0.10 | % | ||||||||
Savings deposits | 1,924,612 | 645 | 0.13 | 1,874,508 | 624 | 0.13 | 1,751,595 | 616 | 0.14 | |||||||||||||||||
Time deposits | 1,150,223 | 2,068 | 0.71 | 1,175,753 | 2,091 | 0.71 | 1,217,023 | 2,339 | 0.76 | |||||||||||||||||
Repurchase agreements | 433,007 | 55 | 0.05 | 448,810 | 53 | 0.05 | 439,739 | 52 | 0.05 | |||||||||||||||||
Other borrowed funds | 6 | — | — | 7 | — | — | 1,781 | 27 | 6.01 | |||||||||||||||||
Long-term debt | 43,200 | 544 | 5.00 | 43,039 | 538 | 5.01 | 36,886 | 482 | 5.18 | |||||||||||||||||
Subordinated debentures held by subsidiary trusts | 82,477 | 610 | 2.93 | 82,477 | 600 | 2.92 | 89,142 | 598 | 2.66 | |||||||||||||||||
Total interest bearing liabilities | 5,719,637 | 4,450 | 0.31 | 5,711,037 | 4,430 | 0.31 | 5,637,097 | 4,646 | 0.33 | |||||||||||||||||
Non-interest bearing deposits | 1,787,419 | 1,739,329 | 1,570,121 | |||||||||||||||||||||||
Other non-interest bearing liabilities | 58,623 | 55,515 | 54,722 | |||||||||||||||||||||||
Stockholders’ equity | 929,757 | 921,229 | 888,464 | |||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,495,436 | $ | 8,427,110 | $ | 8,150,404 | ||||||||||||||||||||
Net FTE interest income | 67,400 | 66,399 | 66,129 | |||||||||||||||||||||||
Less FTE adjustments (2) | (1,070 | ) | (1,111 | ) | (1,047 | ) | ||||||||||||||||||||
Net interest income from consolidated statements of income | $ | 66,330 | $ | 65,288 | $ | 65,082 | ||||||||||||||||||||
Interest rate spread | 3.39 | % | 3.39 | % | 3.47 | % | ||||||||||||||||||||
Net FTE interest margin (3) | 3.47 | % | 3.47 | % | 3.55 | % | ||||||||||||||||||||
Cost of funds, including non-interest bearing demand deposits (4) | 0.24 | % | 0.24 | % | 0.26 | % | ||||||||||||||||||||
(1) | Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material. |
(2) | Interest income and average rates for tax exempt loans and securities are presented on an FTE basis. |
(3) | Net FTE interest margin during the period equals the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by average interest earning assets for the period. |
(4) | Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits. |
9
FIRST INTERSTATE BANCSYSTEM, INC AND SUBSIDIARIES
Average Balance Sheets
(Unaudited, $ in thousands)
Nine Months Ended | |||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||
Interest earning assets: | |||||||||||||||||
Loans (1) (2) | $ | 5,010,251 | $ | 183,305 | 4.89 | % | $ | 4,512,726 | $ | 171,656 | 5.09 | % | |||||
Investment securities (2) | 2,236,581 | 28,209 | 1.69 | 2,098,125 | 27,341 | 1.74 | |||||||||||
Interest bearing deposits in banks | 462,262 | 1,002 | 0.29 | 425,489 | 830 | 0.26 | |||||||||||
Federal funds sold | 2,412 | 11 | 0.61 | 1,658 | 7 | 0.56 | |||||||||||
Total interest earnings assets | 7,711,506 | 212,527 | 3.68 | 7,037,998 | 199,834 | 3.80 | |||||||||||
Non-earning assets | 759,169 | 695,924 | |||||||||||||||
Total assets | $ | 8,470,675 | $ | 7,733,922 | |||||||||||||
Interest bearing liabilities: | |||||||||||||||||
Demand deposits | $ | 2,087,241 | $ | 1,558 | 0.10 | % | $ | 1,940,007 | $ | 1,556 | 0.11 | % | |||||
Savings deposits | 1,894,132 | 1,897 | 0.13 | 1,681,782 | 1,810 | 0.14 | |||||||||||
Time deposits | 1,181,931 | 6,334 | 0.72 | 1,179,735 | 6,872 | 0.78 | |||||||||||
Repurchase agreements | 453,610 | 162 | 0.05 | 444,952 | 181 | 0.05 | |||||||||||
Other borrowed funds | 5 | — | — | 475 | 27 | 7.60 | |||||||||||
Long-term debt | 41,469 | 1,596 | 5.15 | 36,897 | 1,431 | 5.19 | |||||||||||
Subordinated debentures held by subsidiary trusts | 82,477 | 1,800 | 2.92 | 84,723 | 1,778 | 2.81 | |||||||||||
Total interest bearing liabilities | 5,740,865 | 13,347 | 0.31 | 5,368,571 | 13,655 | 0.34 | |||||||||||
Non-interest bearing deposits | 1,750,152 | 1,473,003 | . | ||||||||||||||
Other non-interest bearing liabilities | 60,149 | 49,879 | |||||||||||||||
Stockholders’ equity | 919,509 | 842,469 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,470,675 | $ | 7,733,922 | |||||||||||||
Net FTE interest income | 199,180 | 186,179 | |||||||||||||||
Less FTE adjustments (2) | (3,237 | ) | (3,234 | ) | |||||||||||||
Net interest income from consolidated statements of income | $ | 195,943 | $ | 182,945 | |||||||||||||
Interest rate spread | 3.37 | % | 3.46 | % | |||||||||||||
Net FTE interest margin (3) | 3.45 | % | 3.54 | % | |||||||||||||
Cost of funds, including non-interest bearing demand deposits (4) | 0.24 | % | 0.27 | % | |||||||||||||
(1) | Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material. |
(2) | Interest income and average rates for tax exempt loans and securities are presented on an FTE basis. |
(3) | Net FTE interest margin during the period equals the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by average interest earning assets for the period. |
(4) | Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits. |
10
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, this release contains certain non-GAAP financial measures that management uses to provide supplemental perspectives on capital adequacy, operating results, performance trends and financial condition. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. As a result, the usefulness of these measures to investors may be limited, and they should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.
The Company adjusts certain capital adequacy measures to exclude intangible assets except mortgage servicing rights. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators, are useful to investors in evaluating the Company's performance due to the importance that analysts place on these ratios and also allow investors to compare certain aspects of the Company's capitalization to other companies.
The Company also adjusts earnings and certain performance ratios to exclude certain non-core revenues and expenses, including investment securities net gains or losses, acquisition expenses consisting primarily of travel expenses and professional fees, and nonrecurring litigation expenses. Management believes these non-GAAP financial measures are useful to investors in evaluating operating trends by excluding amounts which the Company views as unrelated to its normalized operations. These non-core income and expense adjustments may be presented before or net of estimated income tax expense.
In addition, the Company adjusts net income to exclude income tax expense and provision for loan losses. Management believes this non-GAAP financial measure is useful to investors in evaluating operating trends by excluding pre-tax amounts which the Company views as fluctuating widely based on economic conditions.
The following table reconciles the above described non-GAAP financial measures to their most directly comparable GAAP financial measures as of the dates indicated.
(Unaudited, $ in thousands, except share and per share data)
2015 | 2014 | |||||||||||||||||||
As Of or For the Quarter Ended | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |||||||||||||||
Net income | $ | 20,162 | $ | 22,222 | $ | 20,980 | $ | 22,776 | $ | 19,155 | ||||||||||
Add back: income tax expense | 10,050 | 11,518 | 10,440 | 12,330 | 10,071 | |||||||||||||||
Add back: provision for loan losses | 1,098 | 1,340 | 1,095 | 118 | 261 | |||||||||||||||
Pre-tax, pre-provision net income | $ | 31,310 | $ | 35,080 | $ | 32,515 | $ | 35,224 | $ | 29,487 | ||||||||||
Net income | $ | 20,162 | $ | 22,222 | $ | 20,980 | $ | 22,776 | $ | 19,155 | ||||||||||
Adj: investment securities (gains) losses, net | (23 | ) | (46 | ) | (6 | ) | 19 | 8 | ||||||||||||
Plus: acquisition & nonrecurring litigation expenses | 5,566 | (7 | ) | 70 | 2,368 | 5,052 | ||||||||||||||
Adj: income taxes | (2,095 | ) | 20 | (24 | ) | (903 | ) | (1,913 | ) | |||||||||||
Total core net income | (A) | 23,610 | 22,189 | 21,020 | 24,260 | 22,302 | ||||||||||||||
Net income | $ | 20,162 | $ | 22,222 | $ | 20,980 | $ | 22,776 | $ | 19,155 | ||||||||||
Add back: income tax expense | 10,050 | 11,518 | 10,440 | 12,330 | 10,071 | |||||||||||||||
Add back: provision for loan losses | 1,098 | 1,340 | 1,095 | 118 | 261 | |||||||||||||||
Adj: investment securities (gains) losses, net | (23 | ) | (46 | ) | (6 | ) | 19 | 8 | ||||||||||||
Plus: acquisition & nonrecurring litigation expenses | 5,566 | (7 | ) | 70 | 2,368 | 5,052 | ||||||||||||||
Core pre-tax, pre-provision net income | $ | 36,853 | $ | 35,027 | $ | 32,579 | $ | 37,611 | $ | 34,547 | ||||||||||
11
2015 | 2014 | |||||||||||||||||||
As Of or For the Quarter Ended | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |||||||||||||||
Total non-interest income | $ | 30,482 | $ | 31,770 | $ | 27,782 | $ | 31,361 | $ | 29,363 | ||||||||||
Adj: investment securities (gains) losses, net | (23 | ) | (46 | ) | (6 | ) | 19 | 8 | ||||||||||||
Total core non-interest income | 30,459 | 31,724 | 27,776 | 31,380 | 29,371 | |||||||||||||||
Net interest income | 66,330 | 65,288 | 64,325 | 65,516 | 65,082 | |||||||||||||||
Total core revenue | (B) | $ | 96,789 | $ | 97,012 | $ | 92,101 | $ | 96,896 | $ | 94,453 | |||||||||
Total non-interest expense | $ | 65,502 | $ | 61,978 | $ | 59,592 | $ | 61,653 | $ | 64,958 | ||||||||||
Less: acquisition & nonrecurring litigation expenses | (5,566 | ) | 7 | (70 | ) | (2,368 | ) | (5,052 | ) | |||||||||||
Core non-interest expense | (C) | $ | 59,936 | $ | 61,985 | $ | 59,522 | $ | 59,285 | $ | 59,906 | |||||||||
Total quarterly average stockholders' equity | (D) | $ | 929,757 | $ | 921,229 | $ | 907,293 | $ | 895,605 | $ | 888,464 | |||||||||
Less: average goodwill and other intangible assets (excluding mortgage servicing rights) | (215,829 | ) | (216,457 | ) | (218,511 | ) | (218,407 | ) | (208,346 | ) | ||||||||||
Average tangible common stockholders' equity | (E) | $ | 713,928 | $ | 704,772 | $ | 688,782 | $ | 677,198 | $ | 680,118 | |||||||||
Total stockholders' equity, period-end | $ | 938,575 | $ | 924,855 | $ | 914,450 | $ | 908,924 | $ | 885,864 | ||||||||||
Less: goodwill and other intangible assets (excluding mortgage servicing rights) | (215,843 | ) | (215,958 | ) | (216,815 | ) | (218,870 | ) | (218,799 | ) | ||||||||||
Total tangible common stockholders' equity | (F) | $ | 722,732 | $ | 708,897 | $ | 697,635 | $ | 690,054 | $ | 667,065 | |||||||||
Total assets | $ | 8,604,530 | $ | 8,386,218 | $ | 8,528,542 | 8,609,936 | 8,481,352 | ||||||||||||
Less: goodwill and other intangible assets (excluding mortgage servicing rights) | (215,843 | ) | (215,958 | ) | (216,815 | ) | (218,870 | ) | (218,799 | ) | ||||||||||
Tangible assets | (G) | $ | 8,388,687 | $ | 8,170,260 | $ | 8,311,727 | $ | 8,391,066 | $ | 8,262,553 | |||||||||
Total quarterly average assets | (H) | $ | 8,495,436 | $ | 8,427,110 | $ | 8,489,413 | $ | 8,586,418 | $ | 8,150,404 | |||||||||
Total common shares outstanding, period end | (I) | 45,345,007 | 45,506,583 | 45,429,468 | 45,788,415 | 45,672,922 | ||||||||||||||
Weighted-average common shares - diluted | (J) | 45,578,978 | 45,606,686 | 45,840,191 | 46,037,344 | 45,460,288 | ||||||||||||||
Core earnings per share, diluted | (A/J) | $ | 0.52 | $ | 0.49 | $ | 0.46 | $ | 0.53 | $ | 0.49 | |||||||||
Tangible book value per share, period-end | (F/I) | 15.94 | 15.58 | 15.36 | 15.07 | 14.61 | ||||||||||||||
Annualized net income | (K) | $ | 79,991 | $ | 89,132 | $ | 85,086 | $ | 90,361 | $ | 75,995 | |||||||||
Annualized core net income | (L) | 93,670 | 89,000 | 85,248 | 96,249 | 88,481 | ||||||||||||||
Core return on average assets | (L/H) | 1.10 | % | 1.06 | % | 1.00 | % | 1.12 | % | 1.09 | % | |||||||||
Core return on average common equity | (L/D) | 10.07 | 9.66 | 9.40 | 10.75 | 9.96 | ||||||||||||||
Return on average tangible common equity | (K/E) | 11.20 | 12.65 | 12.35 | 13.34 | 11.17 | ||||||||||||||
Tangible common stockholders' equity to tangible assets | (F/G) | 8.62 | 8.68 | 8.39 | 8.22 | 8.07 | ||||||||||||||
Core non-interest expense | (C) | $ | 59,936 | $ | 61,985 | $ | 59,522 | $ | 59,285 | $ | 59,906 | |||||||||
Less: amortization of core deposit intangible | (842 | ) | (855 | ) | (854 | ) | (855 | ) | (688 | ) | ||||||||||
Adj: OREO (expense) income | 720 | 823 | 61 | 61 | 58 | |||||||||||||||
Non-interest expense for core efficiency ratio | (M) | $ | 59,814 | $ | 61,953 | $ | 58,729 | $ | 58,491 | $ | 59,276 | |||||||||
Total core revenue | (B) | $ | 96,789 | $ | 97,012 | $ | 92,101 | $ | 96,896 | $ | 94,453 | |||||||||
Add: FTE adjustments | 1,070 | 1,111 | 1,056 | 1,069 | 1,047 | |||||||||||||||
Total core revenue for core efficiency ratio | (N) | $ | 97,859 | $ | 98,123 | $ | 93,157 | $ | 97,965 | $ | 95,500 | |||||||||
Core efficiency ratio | (M/N) | 61.12 | % | 63.14 | % | 63.04 | % | 59.71 | % | 62.07 | % | |||||||||
12