Attached files
| file | filename |
|---|---|
| 8-K - 8-K - S&T BANCORP INC | stba-2016331x8xk.htm |
CONTACT: Mark Kochvar Chief Financial Officer 724.465.4826 800 Philadelphia Street Indiana, PA 15701 |  | |
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces First Quarter 2016 Results and Declares First Quarter Dividend
Indiana, Pa. – April 21, 2016 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its first quarter 2016 earnings. First quarter earnings were $16.1 million, or $0.46 per diluted share, compared to first quarter of 2015 earnings of $12.8 million, or $0.41 per diluted share, and fourth quarter of 2015 earnings of $17.4 million, or $0.50 per diluted share.
First Quarter of 2016 Highlights:
• | Total portfolio loans increased $149 million, or 11.9% annualized, compared to the fourth quarter of 2015, representing the fourth consecutive quarter of growth greater than $100 million. |
• | Total deposits increased $141 million, or 11.7% annualized, compared to the fourth quarter of 2015. |
• | Net interest income increased $0.7 million and net interest margin improved 3 basis points to 3.53% from the prior quarter. |
• | Noninterest income was favorably impacted by a $2.1 million, or $0.04 per share, gain on the sale of our credit card portfolio and a $1.0 million, or $0.02 per share, pension curtailment gain. |
• | S&T declared a $0.19 per share dividend compared to $0.18 in the same period a year ago, an increase of 5.6%. |
“Our teams delivered a solid quarter of loan and deposit growth,” said Todd Brice, president and chief executive officer of S&T. “I am particularly pleased that our organization wide focus on gathering customer deposits has paid off so well in the first quarter. The fact that we were able to grow loans and fund them with customer deposits and maintain our net interest margin is a real tribute to the execution of our relationship banking model by our bankers.”
Net Interest Income
Net interest income increased $0.7 million to $49.6 million for the first quarter of 2016 compared to $48.9 million in the prior quarter. Net interest margin on a fully taxable equivalent basis (FTE) increased 3 basis points to 3.53% compared to 3.50% in the prior quarter. The increase in short term interest rates in December of 2015 positively impacted both net interest income and net interest margin (FTE) for the first quarter of 2016. Average loans increased $119 million compared to the prior quarter and average loan rates improved by 9 basis points. Total interest-bearing deposit costs increased by 7 basis points due to our focus on growing customer deposits.
Asset Quality
Net loan charge-offs decreased $2.9 million to $2.8 million for the first quarter of 2016 compared to $5.7 million in the prior quarter. Total nonperforming loans increased $16.4 million to $51.8 million, or 1.0% of total loans, at March 31, 2016 compared to $35.4 million, or 0.70% of total loans, at December 31, 2015. The increase in nonperforming loans was largely comprised of four relationships with one requiring a specific reserve of $1.7 million and none resulting in loan charge-offs during the first quarter. The provision for loan losses was $5.0
S&T Earnings Release -2
million in the first quarter of 2016 compared to $3.9 million in the fourth quarter of 2015. The allowance for loan losses for originated loans increased to $50.3 million, or 1.11% of total originated loans, at March 31, 2016 compared to $48.1 million, or 1.10% of total originated loans, at December 31, 2015.
Noninterest Income and Expense
Noninterest income increased $2.7 million to $15.8 million for the first quarter of 2016 compared to $13.1 million in the fourth quarter of 2015. The increase included a $2.1 million gain on the sale of our credit card portfolio. The decrease of $0.6 million in debit and credit card fees related to the sale of the credit card portfolio with the reversal of a customer rewards program liability in the fourth quarter of 2015. Insurance fees increased $0.6 million primarily due to annual profit sharing received from insurance carriers. Other income increased due to a $1.0 million curtailment gain related to the freezing of our qualified and nonqualified defined benefit pension plans effective March 31, 2016.
Noninterest expense increased $4.6 million to $38.4 million compared to $33.8 million for the fourth quarter of 2015. The increase is primarily due to higher salaries and employee benefits expense of $3.7 million. Approximately $2.5 million of this increase is due to seasonality and timing of payroll and benefit expenses, including vacation accruals, payroll taxes and medical expenses. Other increases in salaries and employee benefits were due to annual merit increases and higher incentive costs. Other expenses increased $0.9 million partially due to lower expense in the fourth quarter for the reversal of the reserve for unfunded loan commitments related to the sale of the credit card portfolio.
“Our noninterest expense levels were elevated for the first quarter. While some of the increase in expenses was timing related, we will remain diligent in managing our expenses and are committed to bringing our efficiency ratio down to a more normalized level,” said Todd Brice, president and chief executive officer of S&T.
Financial Condition
Total assets increased $161 million to $6.5 billion at March 31, 2016 compared to $6.3 billion at December 31, 2015. Commercial loans grew $137 million during the quarter, or a 14.3% annualized rate, with growth in commercial real estate and commercial and industrial portfolios. Consumer loans grew $12.4 million, or a 4.2% annualized rate, with growth primarily in residential mortgage loans. Total deposits increased $141 million, or an 11.7% annualized rate, to over $5.0 billion at March 31, 2016 as a result of our strategic focus to increase customer deposits. S&T’s risk-based capital ratios decreased slightly this quarter due to strong asset growth. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T declared a $0.19 per share cash dividend at its regular meeting held April 18, 2016. The dividend is payable May 19, 2016 to shareholders of record on May 5, 2016. Dividends declared in the first quarter of 2016 increased $0.01, or 5.6%, compared to $0.18 for the first quarter of 2015.
Conference Call
S&T will host its first quarter 2016 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 21, 2016. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “1st Quarter 2016 Conference Call” and follow the instructions.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $6.5 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in
S&T Earnings Release -3
1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.
This information may contain forward-looking statements regarding future financial performance which are not historical facts and which involve risks and uncertainties. Actual results and performance could differ materially from those anticipated by these forward-looking statements. Factors that could cause such a difference include, but are not limited to, general economic conditions, change in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values and competition. In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors' understanding of S&T's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. A reconciliation of these non-GAAP financial measures is presented in the attached selected financial data spreadsheet. This information should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K for S&T Bancorp, Inc. and subsidiaries.
S&T Bancorp, Inc. | S&T Earnings Release - | 4 | |
Consolidated Selected Financial Data | |||
Unaudited | |||
2016 | 2015 | 2015 | |||||||
First | Fourth | First | |||||||
(dollars in thousands, except per share data) | Quarter | Quarter | Quarter | ||||||
INTEREST INCOME | |||||||||
Loans, including fees | $51,158 | $49,574 | $39,927 | ||||||
Investment securities: | |||||||||
Taxable | 2,553 | 2,493 | 2,383 | ||||||
Tax-exempt | 942 | 948 | 1,020 | ||||||
Dividends | 366 | 338 | 586 | ||||||
Total Interest Income | $55,019 | 53,353 | 43,916 | ||||||
INTEREST EXPENSE | |||||||||
Deposits | 4,254 | 3,611 | 3,007 | ||||||
Borrowings and junior subordinated debt securities | 1,128 | 857 | 650 | ||||||
Total Interest Expense | 5,382 | 4,468 | 3,657 | ||||||
NET INTEREST INCOME | 49,637 | 48,885 | 40,259 | ||||||
Provision for loan losses | 5,014 | 3,915 | 1,207 | ||||||
Net Interest Income After Provision for Loan Losses | 44,623 | 44,970 | 39,052 | ||||||
NONINTEREST INCOME | |||||||||
Securities (losses) gains, net | — | — | — | ||||||
Service charges on deposit accounts | 2,999 | 3,113 | 2,583 | ||||||
Debit and credit card fees | 2,786 | 3,381 | 2,715 | ||||||
Wealth management fees | 2,752 | 2,777 | 2,923 | ||||||
Gain on sale of credit card portfolio | 2,066 | — | — | ||||||
Insurance fees | 1,774 | 1,126 | 1,651 | ||||||
Mortgage banking | 529 | 549 | 525 | ||||||
Other | 2,911 | 2,138 | 1,687 | ||||||
Total Noninterest Income | 15,817 | 13,084 | 12,084 | ||||||
NONINTEREST EXPENSE | |||||||||
Salaries and employee benefits | 20,902 | 17,228 | 16,780 | ||||||
Net occupancy | 2,950 | 2,639 | 2,588 | ||||||
Data processing | 2,111 | 2,348 | 2,320 | ||||||
Furniture and equipment | 1,929 | 1,632 | 1,226 | ||||||
Other taxes | 1,100 | 895 | 842 | ||||||
Professional services and legal | 947 | 1,095 | 523 | ||||||
FDIC insurance | 940 | 923 | 695 | ||||||
Marketing | 901 | 1,319 | 816 | ||||||
Merger related expenses | — | — | 2,301 | ||||||
Other | 6,636 | 5,738 | 5,530 | ||||||
Total Noninterest Expense | 38,416 | 33,817 | 33,621 | ||||||
Income Before Taxes | 22,024 | 24,237 | 17,515 | ||||||
Provision for income taxes | 5,931 | 6,814 | 4,680 | ||||||
Net Income | $16,093 | $17,423 | $12,835 | ||||||
Per Share Data | |||||||||
Shares outstanding at end of period | 34,901,210 | 34,810,374 | 34,797,526 | ||||||
Average shares outstanding - diluted | 34,739,514 | 34,715,899 | 31,260,948 | ||||||
Average shares outstanding - two-class method | 34,749,281 | 34,810,813 | 31,343,849 | ||||||
Diluted earnings per share (1) | $0.46 | $0.50 | $0.41 | ||||||
Dividends declared per share | $0.19 | $0.19 | $0.18 | ||||||
Dividend yield (annualized) | 2.95 | % | 2.47 | % | 2.54 | % | |||
Dividends paid to net income | 41.02 | % | 37.89 | % | 41.74 | % | |||
Book value | $23.23 | $22.76 | $21.91 | ||||||
Tangible book value (3) | $14.76 | $14.26 | $13.40 | ||||||
Market value | $25.76 | $30.82 | $28.38 | ||||||
Profitability Ratios (annualized) | |||||||||
Return on average assets | 1.01 | % | 1.10 | % | 0.99 | % | |||
Return on average tangible assets (4) | 1.08 | % | 1.18 | % | 1.05 | % | |||
Return on average shareholders' equity | 8.06 | % | 8.74 | % | 7.85 | % | |||
Return on average tangible shareholders' equity (5) | 13.00 | % | 14.21 | % | 11.80 | % | |||
Efficiency ratio (FTE) (2) | 57.19 | % | 53.17 | % | 62.57 | % | |||
S&T Bancorp, Inc. | S&T Earnings Release - | 5 | |
Consolidated Selected Financial Data | |||
Unaudited | |||
2016 | 2015 | 2015 | |||||||
First | Fourth | First | |||||||
(dollars in thousands) | Quarter | Quarter | Quarter | ||||||
ASSETS | |||||||||
Cash and due from banks, including interest-bearing deposits | $121,669 | $99,399 | $124,737 | ||||||
Securities available-for-sale, at fair value | 677,221 | 660,963 | 655,829 | ||||||
Loans held for sale | 11,739 | 35,321 | 6,126 | ||||||
Commercial loans: | |||||||||
Commercial real estate | 2,260,231 | 2,166,603 | 2,152,413 | ||||||
Commercial and industrial | 1,334,119 | 1,256,830 | 1,211,053 | ||||||
Commercial construction | 379,293 | 413,444 | 286,166 | ||||||
Total Commercial Loans | 3,973,643 | 3,836,877 | 3,649,632 | ||||||
Consumer loans: | |||||||||
Residential mortgage | 650,544 | 639,372 | 521,506 | ||||||
Home equity | 467,671 | 470,845 | 442,396 | ||||||
Installment and other consumer | 76,189 | 73,939 | 65,754 | ||||||
Consumer construction | 8,701 | 6,579 | 4,410 | ||||||
Total Consumer Loans | 1,203,105 | 1,190,735 | 1,034,066 | ||||||
Total portfolio loans | 5,176,748 | 5,027,612 | 4,683,698 | ||||||
Allowance for loan losses | (50,347) | (48,147) | (48,106) | ||||||
Total portfolio loans, net | 5,126,401 | 4,979,465 | 4,635,592 | ||||||
Goodwill | 291,670 | 291,764 | 290,617 | ||||||
Other assets | 250,462 | 251,442 | 258,392 | ||||||
Total Assets | $6,479,162 | $6,318,354 | $5,971,293 | ||||||
LIABILITIES | |||||||||
Deposits: | |||||||||
Noninterest-bearing demand | $1,212,231 | $1,227,766 | $1,177,623 | ||||||
Interest-bearing demand | 619,617 | 616,188 | 686,546 | ||||||
Money market | 643,795 | 605,184 | 617,609 | ||||||
Savings | 1,047,871 | 1,061,265 | 1,073,755 | ||||||
Certificates of deposit | 1,494,411 | 1,366,208 | 1,272,998 | ||||||
Total Deposits | 5,017,925 | 4,876,611 | 4,828,531 | ||||||
Securities sold under repurchase agreements | 60,025 | 62,086 | 46,721 | ||||||
Short-term borrowings | 355,000 | 356,000 | 199,573 | ||||||
Long-term borrowings | 116,468 | 117,043 | 18,838 | ||||||
Junior subordinated debt securities | 45,619 | 45,619 | 50,619 | ||||||
Other liabilities | 73,324 | 68,758 | 64,753 | ||||||
Total Liabilities | 5,668,361 | 5,526,117 | 5,209,035 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Total Shareholders' Equity | 810,801 | 792,237 | 762,258 | ||||||
Total Liabilities and Shareholders' Equity | $6,479,162 | $6,318,354 | $5,971,293 | ||||||
Capitalization Ratios | |||||||||
Shareholders' equity / assets | 12.51 | % | 12.54 | % | 12.77 | % | |||
Tangible common equity / tangible assets (6) | 8.33 | % | 8.24 | % | 8.22 | % | |||
Tier 1 leverage ratio | 8.98 | % | 8.96 | % | 10.06 | % | |||
Common equity tier 1 capital | 9.74 | % | 9.77 | % | 9.82 | % | |||
Risk-based capital - tier 1 | 10.11 | % | 10.15 | % | 10.22 | % | |||
Risk-based capital - total | 11.57 | % | 11.60 | % | 11.86 | % | |||
S&T Bancorp, Inc. | S&T Earnings Release - | 6 | |
Consolidated Selected Financial Data | |||
Unaudited | |||
2016 | 2015 | 2015 | ||||
First | Fourth | First | ||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||
Net Interest Margin (FTE) (QTD Averages) | ||||||
ASSETS | ||||||
Loans | $5,119,275 | 4.11% | $5,000,736 | 4.02% | $4,122,631 | 4.01% |
Taxable investment securities | 531,467 | 1.98% | 522,679 | 1.98% | 504,867 | 1.97% |
Tax-exempt investment securities | 135,252 | 4.28% | 135,803 | 4.30% | 142,194 | 4.41% |
Federal Home Loan Bank and other restricted stock | 22,592 | 4.72% | 20,848 | 4.59% | 15,427 | 12.66% |
Interest-bearing deposits with banks | 48,159 | 0.54% | 57,317 | 0.30% | 65,575 | 0.22% |
Total Interest-earning Assets | 5,856,745 | 3.89% | 5,737,383 | 3.80% | 4,850,694 | 3.78% |
Noninterest-earning assets | 520,017 | 539,482 | 421,132 | |||
Total Assets | $6,376,762 | $6,276,865 | $5,271,826 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Interest-bearing demand | $603,227 | 0.13% | $610,553 | 0.13% | $432,009 | 0.08% |
Money market | 410,260 | 0.22% | 376,752 | 0.20% | 362,939 | 0.18% |
Savings | 1,061,117 | 0.18% | 1,073,111 | 0.16% | 1,052,347 | 0.16% |
Certificates of deposit | 1,270,652 | 0.90% | 1,146,674 | 0.80% | 991,542 | 0.87% |
Brokered deposits | 395,647 | 0.51% | 499,569 | 0.37% | 260,555 | 0.34% |
Total Interest-bearing deposits | 3,740,903 | 0.46% | 3,706,659 | 0.39% | 3,099,392 | 0.39% |
Securities sold under repurchase agreements | 64,303 | 0.01% | 49,493 | 0.01% | 40,039 | 0.01% |
Short-term borrowings | 329,389 | 0.62% | 291,793 | 0.41% | 236,440 | 0.32% |
Long-term borrowings | 116,705 | 0.95% | 117,275 | 0.77% | 19,086 | 3.01% |
Junior subordinated debt securities | 45,619 | 2.99% | 45,619 | 2.82% | 47,175 | 2.77% |
Total Interest-bearing Liabilities | 4,296,919 | 0.50% | 4,210,839 | 0.42% | 3,442,132 | 0.43% |
Noninterest-bearing demand | 1,205,149 | 1,205,009 | 1,101,795 | |||
Other liabilities | 71,870 | 69,834 | 64,643 | |||
Shareholders' equity | 802,824 | 791,183 | 663,256 | |||
Total Liabilities and Shareholders' Equity | $6,376,762 | $6,276,865 | $5,271,826 | |||
Net Interest Margin (7) | 3.53% | 3.50% | 3.48% | |||
S&T Bancorp, Inc. | S&T Earnings Release - | 7 | |
Consolidated Selected Financial Data | |||
Unaudited | |||
2016 | 2015 | 2015 | ||||
First | Fourth | First | ||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||
Nonperforming Loans (NPL) | ||||||
Commercial loans: | % NPL | % NPL | % NPL | |||
Commercial real estate | $15,244 | 0.67% | $8,719 | 0.40% | $8,386 | 0.39% |
Commercial and industrial | 14,209 | 1.07% | 9,279 | 0.74% | 3,550 | 0.29% |
Commercial construction | 9,993 | 2.63% | 8,753 | 2.12% | 1,973 | 0.69% |
Total Nonperforming Commercial Loans | 39,446 | 0.99% | 26,751 | 0.70% | 13,909 | 0.38% |
Consumer loans: | ||||||
Residential mortgage | 9,012 | 1.39% | 5,629 | 0.88% | 2,226 | 0.43% |
Home equity | 3,267 | 0.70% | 2,902 | 0.62% | 1,986 | 0.45% |
Installment and other consumer | 109 | 0.14% | 100 | 0.14% | 13 | 0.02% |
Total Nonperforming Consumer Loans | 12,388 | 1.03% | 8,631 | 0.72% | 4,225 | 0.41% |
Total Nonperforming Loans | $51,834 | 1.00% | $35,382 | 0.70% | $18,134 | 0.39% |
2016 | 2015 | 2015 | ||||
First | Fourth | First | ||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||
Loan Charge-offs | ||||||
Charge-offs | $3,628 | $6,419 | $1,451 | |||
Recoveries | (814) | (745) | (437) | |||
Net Loan Charge-offs | $2,814 | $5,675 | $1,014 | |||
Net Loan Charge-offs | ||||||
Commercial loans: | ||||||
Commercial real estate | ($307) | ($436) | ($37) | |||
Commercial and industrial | 2,491 | 2,518 | 593 | |||
Commercial construction | (2) | 2,063 | (1) | |||
Total Commercial Loan Charge-offs | 2,182 | 4,145 | 555 | |||
Consumer loans: | ||||||
Residential mortgage | 18 | 407 | 221 | |||
Home equity | 121 | 728 | 28 | |||
Installment and other consumer | 564 | 406 | 220 | |||
Consumer construction | (71) | (11) | (10) | |||
Total Consumer Loan Charge-offs | 632 | 1,530 | 459 | |||
Total Net Loans Charge-offs | $2,814 | $5,675 | $1,014 | |||
2016 | 2015 | 2015 | |||||||
First | Fourth | First | |||||||
Quarter | Quarter | Quarter | |||||||
Asset Quality Data | |||||||||
Nonperforming loans | $51,834 | $35,382 | $18,134 | ||||||
Assets acquired through foreclosure or repossession | 297 | 354 | 1,294 | ||||||
Nonperforming assets | 52,131 | 35,736 | 19,428 | ||||||
Troubled debt restructurings (nonperforming) | 9,291 | 7,659 | 9,916 | ||||||
Troubled debt restructurings (performing) | 22,761 | 23,955 | 36,423 | ||||||
Total troubled debt restructurings | 32,052 | 31,614 | 46,339 | ||||||
Nonperforming loans / loans | 1.00 | % | 0.70 | % | 0.39 | % | |||
Nonperforming assets / loans plus OREO | 1.00 | % | 0.71 | % | 0.41 | % | |||
Allowance for loan losses / originated loans | 1.11 | % | 1.10 | % | 1.27 | % | |||
Allowance for loan losses / total portfolio loans | 0.97 | % | 0.96 | % | 1.03 | % | |||
Allowance for loan losses / nonperforming loans | 97 | % | 136 | % | 265 | % | |||
Net loan charge-offs (recoveries) | $2,814 | $5,675 | $1,014 | ||||||
Net loan charge-offs (recoveries)(annualized) / average loans | 0.22 | % | 0.45 | % | 0.10 | % | |||
S&T Bancorp, Inc. | S&T Earnings Release - | 8 | |
Consolidated Selected Financial Data | |||
Unaudited | |||
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
(1) Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less earnings allocated to participating securities.
(2) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.
2016 | 2015 | 2015 | |||||||
First | Fourth | First | |||||||
Quarter | Quarter | Quarter | |||||||
(3) Tangible Book Value (non-GAAP) | |||||||||
Total shareholders' equity | $810,801 | $792,237 | $762,258 | ||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (295,614) | (296,005) | (295,814) | ||||||
Tangible common equity (non-GAAP) | $515,187 | $496,232 | $466,444 | ||||||
Common shares outstanding | 34,901 | 34,810 | 34,798 | ||||||
Tangible book value (non-GAAP) | $14.76 | $14.26 | $13.40 | ||||||
(4) Return on Average Tangible Assets (non-GAAP) | |||||||||
Net income (annualized) | $64,724 | $69,123 | $52,054 | ||||||
Plus: amortization of intangibles net of tax (annualized) | 1,198 | 1,224 | 917 | ||||||
Net income before amortization of intangibles (annualized) | 65,922 | 70,347 | 52,971 | ||||||
Average total assets | 6,376,763 | 6,276,865 | 5,271,826 | ||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (295,829) | (296,088) | (214,299) | ||||||
Average tangible assets (non-GAAP) | $6,080,934 | $5,980,777 | $5,057,727 | ||||||
Return on average tangible assets (non-GAAP) | 1.08 | % | 1.18 | % | 1.05 | % | |||
(5) Return on Average Tangible Shareholders' Equity (non-GAAP) | |||||||||
Net income (annualized) | $64,724 | $69,123 | $52,054 | ||||||
Plus: amortization of intangibles net of tax (annualized) | 1,198 | 1,224 | 917 | ||||||
Net income before amortization of intangibles (annualized) | 65,922 | 70,347 | 52,971 | ||||||
Average total shareholders' equity | 802,824 | 791,183 | 663,256 | ||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (295,829) | (296,088) | (214,299) | ||||||
Average tangible equity (non-GAAP) | $506,995 | $495,095 | $448,957 | ||||||
Return on average tangible equity (non-GAAP) | 13.00 | % | 14.21 | % | 11.80 | % | |||
(6) Tangible Common Equity / Tangible Assets (non-GAAP) | |||||||||
Total shareholders' equity | $810,801 | $792,237 | $762,258 | ||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (295,614) | (296,005) | (295,814) | ||||||
Tangible common equity (non-GAAP) | 515,187 | 496,232 | 466,444 | ||||||
Total assets | 6,479,162 | 6,318,354 | 5,971,293 | ||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (295,614) | (296,005) | (295,814) | ||||||
Tangible assets (non-GAAP) | $6,183,548 | $6,022,349 | $5,675,479 | ||||||
Tangible common equity to tangible assets (non-GAAP) | 8.33 | % | 8.24 | % | 8.22 | % | |||
(7) Net Interest Margin Rate (FTE) (non-GAAP) | |||||||||
Interest income | $55,019 | $53,353 | $43,916 | ||||||
Less: interest expense | (5,382) | (4,468) | (3,657) | ||||||
Net interest income per consolidated statements of net income | 49,637 | 48,885 | 40,259 | ||||||
Plus: taxable equivalent adjustment | 1,722 | 1,630 | 1,392 | ||||||
Net interest income (FTE) (non-GAAP) | 51,359 | 50,515 | 41,651 | ||||||
Net interest income (FTE) (annualized) | 206,565 | 200,413 | 168,918 | ||||||
Average earning assets | $5,856,745 | $5,737,383 | $4,850,694 | ||||||
Net interest margin - (FTE) (non-GAAP) | 3.53 | % | 3.50 | % | 3.48 | % | |||