Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Paragon Commercial CORP | pbnc_8k.htm |
Exhibit 99.1
NEWS
RELEASE
CORRECTION: Paragon Commercial Corporation Reports 18%
Increase
in Year-to-Date Earnings for 2016
In the
news release, "Paragon Commercial Corporation Reports 18% Increase
in Year-to-Date Earnings for 2016" issued earlier today by Paragon
Commercial Corporation (PBNC), we are advised by the company that
the fully diluted earnings per share is $0.64 rather than $0.63 as
originally issued.
Highlights:
■
Third quarter 2016
net income of $3.5 million including the first quarterly loan loss
provision since 2015
■
Fully diluted
earnings per share of $0.64 reflecting full impact of Initial
Public Offering
■
Loan growth of
$60.0 million in the third quarter
■
Credit quality
remains strong with nonperforming loans only 0.08% of total
loans
■
Nonperforming
assets remained strong at 0.41% of total assets at September 30,
2016
■
Annualized third
quarter 2016 ROAA of 0.95% and ROAE of 10.35%
■
Book value
increased to $24.75 at September 30, 2016 from $24.17 at June 30,
2016
RALEIGH,
N.C., October 19, 2016 – Paragon Commercial Corporation (the
“Company” ) (Nasdaq: PBNC), parent company
of Paragon Bank, today reported unaudited financial results for the
three- and nine-month periods ended September 30, 2016. Net income
during the three-month period increased 4% to $3.5 million compared
to $3.3 million for the same period in 2015. The increase in
earnings was primarily driven by an increase in net interest income
as a result of continued loan growth. The increase in net interest
income was partially offset by a $391,000 loan loss provision as
the Company increased its Allowance for Loan Losses commensurate
with loan growth. In addition, the third quarter of 2015 included
$145,000 in gain on sale of securities not matched in 2016. Fully
diluted earnings per share for the period was $0.64, a 14% decrease
over the same period last year as a result of a 19% increase in
weighted average diluted shares outstanding included in the
calculation due to the Company’s initial public offering
(“IPO”) and listing on Nasdaq during the second quarter
of 2016. For the nine-month period ending September 30, 2016, the
Company reported net income of $9.8 million, an increase of 18%
over the $8.3 million of net income for the same period in 2015.
Robert C. Hatley,
President and CEO stated, “We are delighted with the results
of our first full quarter as a Nasdaq publicly traded company. Our
key indicators of success continue to trend in the right direction.
We again enjoyed high double digit loan growth, our credit quality
is excellent and we recorded another strong quarter of earnings in
the third quarter. We look to a good finish to an outstanding year
for Paragon.”
The
annualized return on average assets for the third quarter of 2016
was 0.95% and the annualized return on average equity was 10.35%
compared to 0.99% and 14.17%, respectively, for the same ratios in
the third quarter of 2015. Those ratios were impacted by the loan
loss provision and the additional capital as a result of the
IPO.
Consolidated Assets
Total
consolidated assets on September 30, 2016 were $1.48 billion
compared to $1.31 billion as of December 31, 2015. Assets increased
during the quarter by $24.5 million as a result of strong loan
demand using funds generated from core deposit growth but offset by
the use of funds to repay short-term borrowings.
Page 1
Loan Portfolio
Loans
outstanding increased by $60.0 million during the third quarter
from $1.11 billion at June 30, 2016 to $1.17 billion at September
30, 2016. Almost half of the loan growth came in commercial and
industrial and owner occupied commercial real estate. The company
continues to see strong loan growth throughout the Raleigh,
Charlotte and Cary markets.
Deposit Portfolio
Total
deposits increased by $98.9 million during the third quarter as the
Company experienced strong local funding growth while
simultaneously making an effort to reduce its noncore deposit
percentage. The deposit portfolio mix continues to experience a
shift from time deposits to core transactional accounts. During the
quarter, demand account balances increased by $9.3 million while
money market and interest checking accounts increased by $112.2
million, increases of 5% and 17%, respectively. During the same
period, time deposits decreased by $22.6 million or 8% as the
Company continued to implement its strategic initiative to reduce
its reliance on time deposits. Since the third quarter of 2015,
time deposits have declined from 37% of total deposits to only
20%.
Credit Quality
The
Company recorded a $391,000 loan loss provision for the third
quarter of 2016 as a result of the growth in total loans. There was
no provision for loan losses for the quarter ended September 30,
2015. The allowance for loan losses as a percentage of total loans
at September 30, 2016 was 0.68%, down from 0.72% in the previous
quarter, impacted in part due to the Company’s first net
charge-off quarter this year of $452,000.
Asset
quality continued to remain strong as nonperforming loans were
0.08% of total loans at September 30, 2016. Loans past due 30 days
or greater at quarter end were 0.10% of total and the ratio of
total nonperforming assets to total assets including foreclosed
real estate was 0.41%.
Net Interest Income
Net
interest income increased by $1.1 million during the third quarter
of 2016 compared to the third quarter of 2015. Net interest income
totaled $11.8 million during the period, representing a net
interest margin of 3.47% on a tax equivalent basis, which was flat
compared to the same 3.47% in the third quarter of 2015. For the
nine-month period ended September 30, 2016, net interest income
increased $3.3 million compared to the nine-month period ended
September 30, 2015.
Non-Interest Income
For the
third quarter of 2016, non-interest income was $438,000 compared to
$544,000 for the same period in 2015. The third quarter of 2015 was
impacted by $145,000 in gains on sale of securities. There were no
such gains for the same period in 2016.
Non-Interest Expenses
Non-interest
expenses in the third quarter of 2016 were $6.8 million compared to
$6.2 million in the third quarter of 2015. Personnel expense
increased by $534,000 as the Company added lenders and staff to
support its strong growth. This expense, however, was partially
offset by declines in several other key categories including
problem loan and unreimbursed loan costs which declined by $109,000
in the third quarter of 2016 compared to the third quarter of
2015.
MEDIA INQUIRIES:
Blair
Kelly – MMI Public Relations, 919.233.6600 or BKelly@MMIpublicrelations.com
Kate
Feldhouse – Paragon Bank, AVP/Marketing & Public
Relations, 919.534.7462 or KFeldhouse@ParagonBank.com
INVESTOR
INQUIRIES:
Steve
Crouse – Paragon Bank, Chief Financial Officer, 919.534.7404
or SCrouse@ParagonBank.com
NEW
MEDIA CONTENT:
Paragon
Bank LinkedIn Page: http://linkd.in/P0o9Wc
Page 2
ABOUT
PARAGON COMMERCIAL CORPORATION
Paragon
Commercial Corporation is the parent company of Paragon Bank, which
provides a private banking experience to businesses, professionals,
executives, entrepreneurs and other individuals. Founded in
Raleigh, North Carolina in 1999, Paragon Bank provides banking
services through highly responsive professionals, an extensive
courier service, online and mobile technologies, free worldwide ATM
access, and a select number of strategically placed offices in
Raleigh, Cary and Charlotte, NC. For more information, visit
http://ParagonBank.com.
FORWARD-LOOKING STATEMENTS
Except
for historical information, all of the statements, expectations,
and assumptions contained in this press release are forward-looking
statements. Actual results might differ materially from those
explicit or implicit in the forward-looking statements. Important
factors that could cause actual results to differ materially
include, without limitation: the effects of future economic
conditions; governmental fiscal and monetary policies; legislative
and regulatory changes; the risks of changes in interest rates;
management of growth; fluctuations in our financial results;
reliance on key personnel; our ability to compete effectively;
privacy, security and other risks associated with our business; and
the other factors set forth from time to time in our SEC filings,
copies of which are available free of charge within the Investor
Relations section of our website at
https://paragonbank.com/investor-relations/ or upon request from
our investor relations department. Paragon Commercial Corporation
assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
USE OF NON-GAAP FINANCIAL MEASURES
Some of
the financial measures included in this press release are not
measures of financial performance recognized by United States
generally accepted accounting principles, or GAAP. These non-GAAP
financial measures are “overhead to average assets” and
“efficiency ratio.” Our management uses these non-GAAP
financial measures in its analysis of our performance and because
of market expectations of use of these ratios to evaluate the
Company. Management believes each of these non-GAAP financial
measures provides useful information about our financial condition
and results of operation.
“Overhead
to average assets” reflects the amount of non-interest
expenses incurred in comparison to the total size of the Company
and provides investors with an additional measure of our
productivity.
The
efficiency ratio shows the amount of revenue generated for each
dollar spent and provides investors with a measure of our
productivity.
These
non-GAAP disclosures should not be viewed as a substitute for
financial results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures are included in the tables at the end of this release
under the caption “Reconciliation of Non-GAAP Financial
Measures.”
Page 3
|
PARAGON COMMERCIAL CORPORATION
|
|||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
|
(Unaudited)
|
|||||||
|
|
|
|
|||||
|
|
Three Months Ended
|
Year to Date
|
|||||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
as of September 30,
|
|
|
(Dollars in thousands, except per share data)
|
2016
|
2016
|
2016
|
2015
|
2015
|
2016
|
2015
|
|
Loans
and loan fees
|
$12,544
|
$11,840
|
$11,190
|
$11,311
|
$11,223
|
$35,574
|
$32,189
|
|
Investment
securities
|
1,214
|
1,369
|
1,219
|
1,238
|
1,249
|
3,802
|
3,548
|
|
Federal
funds and other interest income
|
97
|
63
|
58
|
45
|
38
|
218
|
104
|
|
Total Interest and Dividend Income
|
13,855
|
13,272
|
12,467
|
12,594
|
12,510
|
39,594
|
35,841
|
|
Interest-bearing
checking and money markets
|
966
|
836
|
857
|
769
|
727
|
2,659
|
1,987
|
|
Time
deposits
|
588
|
556
|
567
|
704
|
799
|
1,711
|
2,609
|
|
Borrowings
and repurchase agreements
|
534
|
579
|
492
|
391
|
328
|
1,605
|
924
|
|
Total Interest Expense
|
2,088
|
1,971
|
1,916
|
1,864
|
1,854
|
5,975
|
5,520
|
|
Net Interest Income
|
11,767
|
11,301
|
10,551
|
10,730
|
10,656
|
33,619
|
30,321
|
|
Provision
for loan losses
|
391
|
-
|
-
|
-
|
-
|
391
|
750
|
|
Net Interest Income after Provision for Loan Losses
|
11,376
|
11,301
|
10,551
|
10,730
|
10,656
|
33,228
|
29,571
|
|
Non-interest Income
|
|
|
|
|
|
|
|
|
Increase
in cash surrender value of bank owned life insurance
|
220
|
226
|
223
|
221
|
225
|
669
|
632
|
|
Net
gain (loss) on sale of securities
|
-
|
-
|
85
|
(26)
|
145
|
85
|
568
|
|
Deposit
service charges and other fees
|
65
|
56
|
58
|
56
|
58
|
179
|
163
|
|
Mortgage
banking revenues
|
59
|
33
|
32
|
41
|
44
|
124
|
156
|
|
Net
loss on sale or write-down of other real estate
|
-
|
(45)
|
(212)
|
(287)
|
(9)
|
(257)
|
(472)
|
|
Other
noninterest income
|
94
|
111
|
80
|
97
|
81
|
285
|
305
|
|
Total Non-interest Income
|
438
|
381
|
266
|
102
|
544
|
1,085
|
1,352
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
3,912
|
3,742
|
3,867
|
3,617
|
3,378
|
11,521
|
9,714
|
|
Occupancy
|
362
|
342
|
344
|
344
|
366
|
1,048
|
1,203
|
|
Furniture
and equipment
|
456
|
502
|
492
|
495
|
482
|
1,450
|
1,383
|
|
Data
processing
|
270
|
279
|
296
|
257
|
267
|
845
|
846
|
|
Directors
fees and expenses
|
219
|
219
|
252
|
251
|
253
|
690
|
670
|
|
Professional
fees
|
208
|
182
|
237
|
123
|
159
|
627
|
614
|
|
FDIC
and other supervisory assessments
|
220
|
217
|
195
|
229
|
231
|
632
|
710
|
|
Advertising
and public relations
|
239
|
234
|
188
|
211
|
177
|
661
|
537
|
|
Unreimbursed
loan costs and foreclosure related expenses
|
172
|
142
|
69
|
124
|
281
|
383
|
750
|
|
Other
expenses
|
720
|
629
|
660
|
649
|
586
|
2,009
|
2,033
|
|
Total Non-interest Expenses
|
6,778
|
6,488
|
6,600
|
6,300
|
6,180
|
19,866
|
18,460
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
5,036
|
5,194
|
4,217
|
4,532
|
5,020
|
14,447
|
12,463
|
|
Income
tax expense
|
1,581
|
1,719
|
1,379
|
1,569
|
1,707
|
4,679
|
4,192
|
|
Net income
|
$3,455
|
$3,475
|
$2,838
|
$2,963
|
$3,313
|
$9,768
|
$8,271
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$0.64
|
$0.76
|
$0.62
|
$0.65
|
$0.73
|
$2.02
|
$1.84
|
|
Diluted earnings per share
|
$0.64
|
$0.75
|
$0.62
|
$0.65
|
$0.73
|
$2.00
|
$1.82
|
Page 4
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
CONSOLIDATED BALANCE SHEETS
|
|||||
|
(Unaudited)
|
|||||
|
|
|
|
|||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
|
(Dollars and shares in thousands)
|
2016
|
2016
|
2016
|
2015
|
2015
|
|
Assets
|
|
|
|
|
|
|
Cash
and due from banks
|
$73,706
|
$100,115
|
$51,559
|
$55,530
|
$118,297
|
|
Investment
securities - available for sale, at fair value
|
178,606
|
186,323
|
182,157
|
168,896
|
172,513
|
|
Loans-net
of unearned income and deferred fees
|
1,165,345
|
1,105,344
|
1,044,981
|
1,016,156
|
998,232
|
|
Allowance
for loan losses
|
(7,925)
|
(7,986)
|
(7,931)
|
(7,641)
|
(7,618)
|
|
|
1,157,420
|
1,097,358
|
1,037,050
|
1,008,515
|
990,614
|
|
Premises
and equipment, net
|
15,858
|
16,124
|
16,281
|
16,433
|
16,538
|
|
Bank
owned life insurance
|
28,943
|
28,723
|
28,497
|
28,274
|
28,052
|
|
Federal
Home Loan Bank stock, at cost
|
5,425
|
8,613
|
7,232
|
8,061
|
7,636
|
|
Accrued
interest receivable
|
4,022
|
4,092
|
3,858
|
3,795
|
3,609
|
|
Deferred
tax assets
|
3,361
|
3,264
|
4,304
|
4,118
|
5,141
|
|
Other
real estate owned and reposessed property
|
5,183
|
5,183
|
5,228
|
5,453
|
13,017
|
|
Other
assets
|
6,335
|
4,538
|
5,011
|
6,836
|
5,776
|
|
Total Assets
|
$1,478,859
|
$1,454,333
|
$1,341,177
|
$1,305,911
|
$1,361,193
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Demand,
non-interest bearing
|
$188,398
|
$179,070
|
$166,556
|
$158,974
|
$161,878
|
|
Money
market accounts and interest checking
|
767,124
|
654,954
|
624,199
|
504,092
|
501,822
|
|
Time
deposits
|
243,563
|
266,177
|
256,378
|
319,781
|
392,080
|
|
Total
deposits
|
1,199,085
|
1,100,201
|
1,047,133
|
982,847
|
1,055,780
|
|
Repurchase
agreements and federal funds purchased
|
19,796
|
22,690
|
24,494
|
30,580
|
25,978
|
|
Borrowings
|
100,000
|
175,000
|
146,673
|
169,800
|
160,422
|
|
Subordinated
debentures
|
18,558
|
18,558
|
18,558
|
18,558
|
18,558
|
|
Other
liabilities
|
6,398
|
6,175
|
4,147
|
6,468
|
6,162
|
|
Total Liabilities
|
1,343,837
|
1,322,624
|
1,241,005
|
1,208,253
|
1,266,900
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Common
stock, $0.008 par value
|
44
|
43
|
37
|
37
|
37
|
|
Additional
paid in capital
|
80,015
|
79,845
|
53,235
|
53,147
|
52,993
|
|
Retained
earnings
|
55,128
|
51,673
|
48,198
|
45,360
|
42,397
|
|
Accumulated
other comprehensive (loss) income
|
(165)
|
148
|
(1,298)
|
(886)
|
(1,134)
|
|
Total Shareholders' Equity
|
135,022
|
131,709
|
100,172
|
97,658
|
94,293
|
|
Total Liabilities and Shareholders' Equity
|
$1,478,859
|
$1,454,333
|
$1,341,177
|
$1,305,911
|
$1,361,193
|
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
LOANS
|
|||||
|
(Unaudited)
|
|||||
|
|
|
|
|||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
|
(In thousands except per share data)
|
2016
|
2016
|
2016
|
2015
|
2015
|
|
Loans
|
|
|
|
|
|
|
Construction
and land development
|
$74,605
|
$63,819
|
$68,316
|
$64,704
|
$70,997
|
|
Commercial
real estate:
|
|
|
|
|
|
|
Commercial real estate
|
355,839
|
340,475
|
320,791
|
305,723
|
300,696
|
|
Commercial real estate - owner occupied
|
178,631
|
158,612
|
144,168
|
147,017
|
141,563
|
|
Farmland
|
994
|
1,002
|
1,313
|
1,332
|
1,348
|
|
Multifamily, nonresidential and junior liens
|
96,643
|
93,945
|
86,610
|
79,171
|
84,228
|
|
Total commercial real estate
|
632,107
|
594,034
|
552,882
|
533,243
|
527,835
|
|
Consumer
real estate:
|
|
|
|
|
|
|
Home equity lines
|
86,361
|
85,883
|
80,940
|
78,943
|
75,687
|
|
Secured by 1-4 family residential, secured by 1st deeds of
trust
|
190,913
|
186,054
|
171,355
|
167,709
|
164,555
|
|
Secured by 1-4 family residential, secured by 2nd deeds of
trust
|
4,358
|
3,656
|
3,731
|
3,723
|
3,642
|
|
Total consumer real estate
|
281,632
|
275,593
|
256,026
|
250,375
|
243,884
|
|
Commercial
and industrial loans
|
164,913
|
157,640
|
153,159
|
153,669
|
138,571
|
|
Consumer
and other
|
12,088
|
14,258
|
14,598
|
14,165
|
16,945
|
|
Total loans
|
1,165,345
|
1,105,344
|
1,044,981
|
1,016,156
|
998,232
|
Page 5
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
OTHER FINANCIAL HIGHLIGHTS
|
|||||
|
(Unaudited)
|
|||||
|
|
|||||
|
|
Three Months Ended
|
||||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
|
(In thousands, except per share data)
|
2016
|
2016
|
2016
|
2015
|
2015
|
|
Selected Average Balances:
|
|
|
|
|
|
|
Average
total assets
|
$1,452,526
|
$1,393,722
|
$1,323,397
|
$1,330,518
|
$1,342,111
|
|
Average
earning assets
|
1,378,081
|
1,310,510
|
1,235,237
|
1,239,027
|
1,240,640
|
|
Average
loans
|
1,135,448
|
1,071,325
|
1,019,396
|
1,004,627
|
999,857
|
|
Average
total deposits
|
1,123,277
|
1,019,133
|
994,219
|
1,010,610
|
1,010,398
|
|
Average
shareholders' equity
|
133,494
|
103,682
|
99,090
|
96,688
|
93,498
|
|
|
|
|
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
Return
on average assets
|
0.95%
|
1.00%
|
0.86%
|
0.89%
|
0.99%
|
|
Return
on average equity
|
10.35%
|
13.41%
|
11.46%
|
12.26%
|
14.17%
|
|
Tangible
common equity ratio
|
9.13%
|
9.06%
|
7.47%
|
7.48%
|
6.93%
|
|
Total
interest-earning assets
|
$1,408,456
|
$1,373,728
|
$1,257,254
|
$1,224,106
|
$1,280,961
|
|
Tax
equivalent net interest margin
|
3.47%
|
3.55%
|
3.54%
|
3.52%
|
3.47%
|
|
Overhead
to average assets (1)
|
1.87%
|
1.86%
|
1.99%
|
1.89%
|
1.84%
|
|
Efficiency
ratio (1)
|
54.38%
|
54.13%
|
59.04%
|
55.44%
|
54.88%
|
|
|
|
|
|
|
|
|
Credit Ratios:
|
|
|
|
|
|
|
Non-accrual
loans
|
$948
|
$1,220
|
$487
|
$513
|
$738
|
|
Other
real estate owned
|
$5,183
|
$5,183
|
$5,228
|
$5,453
|
$13,017
|
|
Nonperforming
assets to total assets
|
0.41%
|
0.44%
|
0.43%
|
0.46%
|
1.01%
|
|
Nonperforming
loans to total loans
|
0.08%
|
0.11%
|
0.05%
|
0.05%
|
0.07%
|
|
Loans
past due >30 days and still accruing
|
$499
|
$346
|
$127
|
$-
|
$-
|
|
Net
loan charge-offs (recoveries)
|
$452
|
$(56)
|
$(289)
|
$(23)
|
$(49)
|
|
Annualized
net charge-offs/average loans
|
0.16%
|
-0.02%
|
-0.11%
|
-0.01%
|
-0.02%
|
|
Allowance
for loan losses/total loans
|
0.68%
|
0.72%
|
0.76%
|
0.75%
|
0.76%
|
|
Allowance
for loan losses/nonperforming loans
|
836%
|
655%
|
1629%
|
1489%
|
1032%
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
Average
diluted common shares outstanding
|
5,445,641
|
4,624,326
|
4,574,455
|
4,567,023
|
4,565,963
|
|
End
of quarter common shares outstanding
|
5,455,382
|
5,449,886
|
4,581,334
|
4,581,334
|
4,580,434
|
|
Book
value per common share
|
$24.77
|
$24.17
|
$21.87
|
$21.32
|
$20.59
|
(1) This
measure is not a measure recognized under United States generally
accepted accounting principles, or GAAP, and is therefore
considered to be a non-GAAP financial measure. Please see
“Reconciliation of Non-GAAP Financial Measures” below
for a reconciliation of this measure to the most directly
comparable GAAP measure.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
“Overhead
to average assets” is defined as non-interest expense divided
by total average assets. We believe overhead to average assets is
an important indicator of the company’s level of non-interest
expenses relative to the company’s overall size, which
assists in the evaluation of our productivity. While the overhead
to average assets ratio is a measure of productivity, its value
reflects the attributes of the business model we
employ.
|
|
Three Months Ended
|
||||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
|
(Dollars
in thousands)
|
2016
|
2016
|
2016
|
2015
|
2015
|
|
Overhead to Average Assets
|
|
|
|
|
|
|
Non-interest
expense
|
$6,778
|
$6,488
|
$6,600
|
$6,300
|
$6,180
|
|
Average
Assets
|
1,452,526
|
1,393,722
|
1,323,397
|
1,330,518
|
1,342,111
|
|
|
|
|
|
|
|
|
Overhead
to Average Assets
|
1.87%
|
1.86%
|
1.99%
|
1.89%
|
1.84%
|
Page 6
“Efficiency
ratio” is defined as total non-interest expense divided by
adjusted operating revenue. Adjusted operating revenue is equal to
net interest income (taxable equivalent) plus non-interest income,
adjusted to exclude the impacts of gains and losses on the sale of
securities and gains and losses on the sale or write down of
foreclosed real estate because we believe the timing of the
recognition of those items to be discretionary. We believe the
efficiency ratio is important as an indicator of productivity
because it shows the amount of revenue generated by our operations
for each dollar spent. While the efficiency ratio is a measure of
productivity, its value reflects the attributes of the business
model we employ.
|
|
Three Months Ended
|
||||
|
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
|
(Dollars
in thousands)
|
2016
|
2016
|
2016
|
2015
|
2015
|
|
Efficiency Ratio
|
|
|
|
|
|
|
Non-interest
expense
|
$6,778
|
$6,488
|
$6,600
|
$6,300
|
$6,180
|
|
|
|
|
|
|
|
|
Net
interest taxable equivalent income
|
$12,026
|
$11,560
|
$10,785
|
$10,949
|
$10,853
|
|
Non-interest
income
|
438
|
381
|
266
|
102
|
544
|
|
Less
gain on investment securities
|
-
|
-
|
(85)
|
26
|
(145)
|
|
Plus
loss on sale or writedown of foreclosed real estate
|
-
|
45
|
212
|
287
|
9
|
|
Adjusted operating revenue
|
$12,464
|
$11,986
|
$11,178
|
$11,364
|
$11,261
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
54.38%
|
54.13%
|
59.04%
|
55.44%
|
54.88%
|
Page 7