Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - S&T BANCORP INC | stba4q17investorsheet201.htm |
| 8-K - 8-K - S&T BANCORP INC | stba-4q2017investorpresx8k.htm |
MEMBER FDIC
Full Year 2017
2
This presentation contains or incorporates statements that we believe are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans,
objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and
other matters regarding or affecting S&T and its future business and operations. Forward looking statements are typically identified by words
or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, “ believe”, “assume”, “strategy”, “trend”,
“plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “believe”, “comfortable”, “current”, “position”, “maintain”, “sustain”,
“seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or
may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these
assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters
discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and
trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of
uncertainties or other factors including, but not limited to: credit losses; cyber-security concerns; rapid technological developments and
changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a
change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision
and oversight; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future
litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new
products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated
benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult,
disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or
business conditions; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic
conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an
adjustment to its carrying value resulting in a non-cash charge to net income; re-emergence of turbulence in significant portions of the global
financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and
liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to
support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking
statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to
unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often
do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no
obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
Forward Looking Statement
and Risk Factors
3
Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting
Principles (GAAP), S&T management uses and this presentation contains or references certain non-
GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes
these financial measures provide information useful to investors in understanding our operational
performance and business and performance trends which 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. The non-GAAP financial measures contained
therein should be read in conjunction with the audited financial statements and analysis as presented in
the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented
in the respective Quarterly Reports on Forms 10-Q for S&T Bancorp, Inc. and subsidiaries.
4
Table of Contents
Corporate Profile 5
2017 Highlights 6
Performance Summary 7
STBA Investment Thesis 8
Performance 9
Expenses 12
Growth 14
Mergers and Expansion 15
Markets 16
Asset Quality 22
Rate Sensitivity 27
Senior Management 28
Lines of Business 29
Valuation 30
The Right Size 31
Financial Data 32
Appendix - Non-GAAP Measures 38
5
Corporate Profile
5
• Headquartered in Indiana, PA
• $7.1 billion in assets (as of 12.31.17)
• $1.4 billion market cap (as of 12.31.17)
• Locations in 5 regional markets
• Stock symbol: STBA
Corporate Profile
6
2017 Highlights
• Net income increased to $73.0 million compared to $71.4 million for 2016.
Excluding the net DTA re-measurement of $13.4 million, net income
increased 21% to $86.4 million(1) compared to 2016.
• ROA was 1.03%, ROE was 8.37% and ROTE(1) was 12.77%.
• Excluding the DTA re-measurement of $13.4 million, ROA was 1.22%(1),
ROE was 9.90%(1) and ROTE was 15.08%(1).
• Net interest income increased $22.5 million, or 11%, and net interest
margin (FTE)(1) increased 9 basis points to 3.56% compared to 3.47% in
2016.
• Asset quality metrics improved with a decrease in nonperforming loans of
$18.7 million, or 44%, compared to December 31, 2016.
(1)Refer to appendix for reconciliation of Non-GAAP financial measures
2017 Highlights
7
Performance Summary
(1) Refer to appendix for reconciliation of Non-GAAP financial measures
(2)These are non-GAAP numbers that adjust for the effects of a one-time, non-cash re-measurement of $13.4 million of our deferred tax asset in
2017. Refer to appendix for reconciliation of non-GAAP financial measures.
2017 ExcludesDTA(2) 2016 2015 2014 2013
Net Income (in $ thousands) $72,968 $86,401 $71,392 $67,081 $57,910 $50,539
Diluted Earnings per Share $2.09 $2.47 $2.05 $1.98 $1.95 $1.70
Dividends Declared per Share $0.82 $0.77 $0.73 $0.68 $0.61
Total Assets (in $ millions) $7,060 $6,943 $6,318 $4,965 $4,533
Total Loans (in $ millions) $5,766 $5,615 $5,063 $3,872 $3,568
Total Deposits (in $ millions) $5,428 $5,272 $4,877 $3,909 $3,672
Return on Average Assets 1.03% 1.22% 1.08% 1.13% 1.22% 1.12%
Return on Average Equity 8.37% 9.90% 8.67% 8.94% 9.71% 9.21%
Return on Tangible Equity(1) 12.77% 15.08% 13.71% 14.39% 14.02% 13.94%
Net Interest Margin (FTE)(1) 3.56% 3.47% 3.56% 3.50% 3.50%
Nonperforming Assets/Loans+OREO 0.42% 0.77% 0.71% 0.33% 0.64%
Allowance for Loan Losses/Total Portfolio Loans 0.98% 0.94% 0.96% 1.24% 1.30%
Net Loan Charge-offs/Average Loans 0.18% 0.25% 0.22% 0.00% 0.25%
Risk Based Capital-Total 12.55% 11.86% 11.60% 14.27% 14.36%
Tangible Common Equity/Tangible Assets(1) 8.72% 8.23% 8.24% 9.00% 9.03%
Performance
8
STBA Investment Thesis
• Above peer performance
• Demonstrated expense discipline and efficiency
• Organic growth
• Strategic and effective mergers and expansion
• Stable regional markets with long-term
oil and gas benefit
• Sound asset quality
STBA Investment Thesis
9
Return on Average Assets
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0.0%
2013 2014 2015 2016 2017
1.03%
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17
(2)This is a non-GAAP number that adjusts for the effects of a one-time, non-cash re-measurement of $13.4
million of our deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures.
Performance
Peer(1)
1.12%
1.22%
1.13%
1.08%
1.22%(2)
10
Performance
Return on Average Equity
12.5%
10.0%
7.5%
5.0%
2.5%
0.0%
2013 2014 2015 2016 2017
8.37%
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17
(2)This is a non-GAAP number that adjusts for the effects of a one-time, non-cash re-measurement of $13.4
million of our deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures.
Peer(1)9.21%
9.90%(2)
8.67%
8.94%
9.71%
11
Performance
Return on Average Tangible Equity
20.0%
15.0%
10.0%
5.0%
0.0%
2013 2014 2015 2016 2017
12.77%
(1) SNL Financial Custom Peer Group Holding Companies with $3-10 Billion of Assets through 3Q17.
(2) )Refer to appendix for reconciliation of non-GAAP financial measures
(3)This is a non-GAAP number that adjusts for the effects of a one-time, non-cash re-measurement of $13.4 million of
our deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures.
Peer(1)
(2)
13.94% 14.02%
14.39%
13.71%
15.08%(3)
12
Non Interest Expense / Average Assets
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2013 2014 2015 2016 2017
Expenses
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17.
Peer(1)2.61%
2.46%
2.30%
2.17%
2.10%
13
Expenses
Efficiency Ratio
70%
60%
50%
40%
2013 2014 2015 2016 2017
60.03%
58.67%
55.86%
54.06%
51.77%
Peer(1)
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17.
(2)Refer to appendix for reconciliation of Non-GAAP financial measures
(2)
14
Loan Growth
$6,000
$5,500
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
Lo
an
D
ol
la
rs
(in
m
ill
io
ns
)
2011 2012 2013 2014 2015 2016 2017
$3,133
$3,369
$3,568
$3,872
$5,063
$5,615
$5,766
Growth
CA
GR = 10.7
%
15
Mergers and expansion
S&T Bank Mainline Bank Gateway Bank Integrity Bank
$7,000
$6,000
$5,000
$4,000
$3,000
$
(M
ill
io
ns
)
2012 2013 2014 2015 2016 2017
4,159
4,533
$4,533
4,965
$4,965
5,452
6,943
$6,943
7,060
$7,060
242
126
$4,527
866
$6,318
North Shore Pittsburgh
LPO opened -
November 16, 2016
Mainline National Bank
acquired - March 9, 2012
Northeast Ohio
Loan Production Office
opened – August 27, 2012
Gateway Bank acquired
August 13, 2012
Western NY LPO
opened – March
23, 2015
Integrity Bank
acquired
March 4, 2015
Central Ohio LPO
opened – January 21, 2014
S&T Bank branch opens in
State College, PA
June 18, 2014
S&T Bank branch
opens in Akron, OH
December 21, 2015
16
Loan Growth by Market
2012 2017
Markets
Western NY Western NY
Central PA
Central PA
Southwestern PA Southwestern PA
Northeast OH
Northeast OH
Central OH Central OH
17
MSAs Locations Deposits(2) % Loans(2) %
Southwestern PA(1)
Pittsburgh
50 $3,849 70.9% $2,975 51.6%Altoona
Johnstown
Central PA
Lancaster
8 696 12.8% 838 14.5%Harrisburg
York
Other PA 123 2.3% 380 6.6%
Total PA 4,668 86.0% 4,193 72.7%
Northeast OH Akron 1 42 0.7% 314 5.4%
Cleveland
Central OH Columbus 1 31 0.6% 291 5.0%
Other OH 15 0.3% 159 2.8%
Total OH 88 1.6% 764 13.2%
Western NY Rochester 1 14 0.2% 373 6.5%
Buffalo
Other NY 19 0.4% 172 3.0%
Total NY 33 0.6% 545 9.5%
Total Other States 639 11.8% 264 4.6%
Total $5,428 100.0% $5,766 100.0%
S&T Operates in 5 Regional Markets
(1) Includes Pittsburgh, Altoona & Johnstown MSAs and Indiana, Clearfield & Jefferson Counties
(2) Based on customer residence
Dollars in millions
Markets
18
Projected Population Change 2018-2023
5%
4%
3%
2%
1%
0%
-1%
-2%
Southwestern PA Central PA Northeast OH Central OH Western NY
(0.66)%
1.99%
(0.14)%
4.01%
0.25%
3.50%
2,838 1,561 2,752 2,076 2,208
Source: SNL & Nielson 2017
Estimated
Population
2018
in 000s
Markets
U.S. Average
19
Median Household Income
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Southwestern PA Central PA Northeast OH Central OH Western NY
$57,787
$64,246
$56,107
$63,009
$58,110
$61,045 U.S. Average
Source: SNL & Nielson 2017
Markets
20
Unemployment Rate
7%
6%
5%
4%
3%
2%
1%
Southwestern PA Central PA Northeast OH Central OH Western NY
4.37%
3.55%
4.55%
3.50%
5.20%
4.10%
Source: November 2017 Bureau of Labor Statistics; seasonally adjusted
U.S. Average
Markets
21
Stable regional markets with long-term oil & gas benefit
Markets
22
Asset quality
Nonperforming Loans / Total Loans
1.5%
1.0%
0.5%
0.0%
2013 2014 2015 2016 2017
0.63%
0.32%
0.70%
0.76%
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17
Peer(1) 0.42%
23
Asset quality
Net Charge Offs / Average Loans
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
2013 2014 2015 2016 2017
0.25%
0.00%
0.22%
0.25%
0.18%
(1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets through 3Q17
Peer(1)
24
Commercial
CRE
$2,686
60%
C&I
$1,433
32%
Asset quality
Loan Mix
As of 12.31.17
Total Portfolio Loans $5,761
Commercial
$4,504
78%
Consumer
$1,257
22%
Consumer
Mortgage/
Construction
$703
56%
Home Equity
$487
39%
Other
$67
5%
in $ Millions
Construction
$385
8%
25
Asset quality
Recreational
1%
Mobile Home Park
2%
Convenience Stores
2%
Restaurant
2%
Student Rentals
3% Dealerships
4%
Warehouse/Storage
4%
Other
5%
Manufacturing
6%
Retail Space
7%
Flex/Mixed Use
9%
Healthcare
9%
Strip Malls
9%
Hotels
10%
Multi-Family
12%
Offices
15%
Commercial Real Estate Diversification
As of 12.31.17
Total CRE $2,686 million
Pennsylvania
63%
Ohio
20%
New York
10%
West Virginia
2%
Other
5%
26
Asset quality
Commercial & Industrial Diversification
As of 12.31.17
Total C&I $1,433 million
Agriculture 1%
Arts, Enter. & Recr. 1%
Food Svs. 1%
Support Svs. 1%
Finance/Insurance 2%
Mining 3%
Transportation
3%
Professional Svs. 3%
Wholesale Trade 5%
Construction 5%
Other Svs. 5%
Educational Svs 7%
Health Care 11%
RE- Rent/Lease 11%
Public Admin. 12%
Manufacturing 13%
Retail Trade 15%
27
Loans & Securities
Floating Rate $2,426 37%
ARM/Future Reset 1,705 26%
Fixed Rate 2,424 37%
Total $6,555 100%
Deposits & Borrowings
Floating Rate/Short Wholesale Borrowings $1,052 17%
Non-Maturity Variable Deposits 2,375 39%
Non-Interest Bearing DDA 1,388 23%
Fixed Rate 1,296 21%
Total $6,111 100%
Rate Sensitivity
As of 12.31.17
in $ Millions
Rate Sensitivity
28
Senior Management
Name Title Years in Banking Years with S&T
Todd D. Brice President & CEO 32 32
Mark Kochvar Chief Financial Officer 31 25
David G. Antolik Chief Lending Officer 29 27
Ernest J. Draganza Chief Risk Officer 30 25
Patrick J. Haberfield Chief Credit Officer 30 7
David P. Ruddock Chief Operating Officer 32 32
Thomas J. Sposito, II Chief Corporate Develop Officer 32 5
Rebecca A. Stapleton Chief Banking Officer 29 29
Senior Management
29
Lines of Business
Commercial Banking
• 46 commercial bankers
• 19 business bankers
• C&I growth focused on privately held companies
with sales up to $150 million
• Regional team based approach to credit delivery
• Dedicated small business (B2B) delivery channel
• Dedicated treasury management team
Retail Banking
• Relationship driven
• Robust suite of deposit, loan, and digital products
• Over 132,000 households
• 60 locations; average deposit size of $90.5 million
• Technology driven with over 111,000 online banking
and over 65,000 mobile banking customers
• Solution center support
Wealth Management
• $2.0 billion AUA
• 4 divisions
• S&T Trust
• S&T Financial Services
• RIA/Stewart Capital Advisors
• Private Banking
• Annual revenue of $10.2 million
Lines of Business
30
1 YR 3 YR 5 YR 10 YR
STBA 4.23% 12.88% 20.21% 6.86%
NASDAQ Bank 5.47% 16.56% 18.67% 6.48%
KRX-Dow Jones KBW Regional Bank 1.82% 14.49% 17.68% 6.34%
S&P 500 21.89% 11.40% 15.77% 8.48%
Valuation
NASDAQ Bank S&P 500
KRX Regional Bank S&T Bancorp
Stock Price Change (%)
30
20
10
0
-10
-20
Pr
ic
e
C
ha
ng
e(
%
)
D
ec
16
Ja
n
17
Fe
b
17
M
ar
17
Ap
r1
7
M
ay
17
Ju
n
17
Ju
l1
7
Au
g
17
Se
p
17
O
ct
17
N
ov
17
D
ec
17
Institutional Ownership 54.08%
Insider Ownership 1.66%
Employee 401K 1.48%
Source: NASDAQ and internal data
Source: Bloomberg
Total Annualized Shareholder Return
Includes reinvested dividends (Data as of 12.31.17)
Stock Performance
Source: SNL
31
The Right Size
• Big enough to:
• Provide full complement of products and services
• Access technology
• Access capital markets
• Attract talent
• Expand – mergers and acquisitions/de novo
• Small enough to:
• Stay close to our customers
• Understand our markets
• Be responsive
The Right Size
32
Income Statement
Dollars in thousands, except per share data
(1)These are non-GAAP numbers that adjust for the effects of a one-time, non-cash re-measurement of $13.4 million of our
deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures.
2017
Excludes
DTA(1) 2016 2015 2014 2013
Net Interest Income $225,733 $203,259 $187,551 $148,042 $139,193
Noninterest Income 55,462 54,635 51,033 46,338 51,527
Total Revenue 281,195 257,894 238,584 194,380 190,720
Noninterest Expense 147,907 143,232 136,717 117,240 117,392
Provision for Loan Losses 13,883 17,965 10,388 1,715 8,311
Net Income Before Taxes 119,405 96,697 91,479 75,425 65,017
Taxes 46,437 33,004 25,305 24,398 17,515 14,478
Net Income $72,968 $86,401 $71,392 $67,081 $57,910 $50,539
Diluted Earnings per Share $2.09 $2.47 $2.05 $1.98 $1.95 $1.70
Financial Data
33
Balance Sheet
Dollars in thousands
2017 2016 2015 2014 2013
Securities $698,291 $693,487 $660,963 $640,273 $509,425
Interest-bearing Balances 61,965 87,201 41,639 57,048 53,594
Loans, Net 5,709,544 5,562,437 5,014,786 3,823,805 3,522,080
Other 590,455 599,928 600,966 443,560 448,091
Total Assets $7,060,255 $6,943,053 $6,318,354 $4,964,686 $4,533,190
Deposits $5,427,891 $5,272,377 $4,876,611 $3,908,842 $3,672,308
Borrowings 683,081 771,164 580,748 385,666 241,276
Other Liabilities 65,252 57,556 68,758 61,789 48,300
Equity 884,031 841,956 792,237 608,389 571,306
Total Liabilities & Equity $7,060,255 $6,943,053 $6,318,354 $4,964,686 $4,533,190
Financial Data
34
Net Interest Margin
(1)Refer to appendix for reconciliation of Non-GAAP financial measures
2017 2016 2015 2014 2013
Securities - FTE 2.48% 2.41% 2.48% 2.58% 2.64%
Loans - FTE 4.32% 4.08% 4.09% 4.06% 4.22%
Total Interest-earning Assets - FTE 4.09% 3.87% 3.86% 3.78% 3.86%
Deposits 0.62% 0.51% 0.37% 0.36% 0.42%
Borrowings 1.27% 0.86% 0.71% 0.91% 1.28%
Total Costing Liabilities 0.72% 0.55% 0.40% 0.41% 0.50%
Net Interest Margin – FTE(1) 3.56% 3.47% 3.56% 3.50% 3.50%
Purchase Accounting NIM – FTE(1) 3.53% 3.41% 3.44% 3.49% 3.49%
Financial Data
35
Loan Portfolio
Dollars in thousands
2017 2016 2015 2014 2013
Commercial
Commercial Real Estate $2,685,994 $2,498,476 $2,166,603 $1,682,236 $1,607,756
Commercial & Industrial 1,433,266 1,401,035 1,256,830 994,138 842,449
Construction 384,334 455,884 413,444 216,148 143,675
Total Commercial 4,503,594 4,355,395 3,836,877 2,892,522 2,593,880
Consumer
Residential Mortgage 698,774 701,982 639,372 489,586 487,092
Home Equity 487,326 482,284 470,845 418,563 414,195
Installment and Other Consumer 67,204 65,852 73,939 65,567 67,883
Construction 4,551 5,906 6,579 2,508 3,149
Total Consumer 1,257,855 1,256,024 1,190,735 976,224 972,319
Total Portfolio Loans 5,761,449 5,611,419 5,027,612 3,868,746 3,566,199
Total Loans Held for Sale 4,485 3,793 35,321 2,970 2,136
Total Loans $5,765,934 $5,615,212 $5,062,933 $3,871,716 $3,568,335
Financial Data
36
Asset Quality
Dollars in thousands
2017 2016 2015 2014 2013
Total Nonperforming Loans $23,938 $42,635 $35,382 $12,457 $22,454
Nonperforming Loans/Total Loans 0.42% 0.76% 0.70% 0.32% 0.63%
Nonperforming Assets/Total Loans + OREO 0.42% 0.77% 0.71% 0.33% 0.64%
Net Charge-offs (Recoveries)/Average Loans 0.18% 0.25% 0.22% 0.00% 0.25%
Allowance for Loan Losses/Total Portfolio Loans 0.98% 0.94% 0.96% 1.24% 1.30%
Allowance for Loan Losses/Nonperforming Loans 236% 124% 136% 385% 206%
Financial Data
37
Capital
(1)Refer to appendix for reconciliation of Non-GAAP financial measures
2017 2016 2015 2014 2013
Leverage 9.17% 8.98% 8.96% 9.80% 9.75%
Common Tier 1 – Risk-Based Capital 10.71% 10.04% 9.77% 11.81% 11.79%
Tier 1 – Risk-Based Capital 11.06% 10.39% 10.15% 12.34% 12.37%
Total – Risk-Based Capital 12.55% 11.86% 11.60% 14.27% 14.36%
Tangible Common Equity/Tangible Assets(1) 8.72% 8.23% 8.24% 9.00% 9.03%
Financial Data
38
APPENDIX – Non-GAAP Measures
2017 2016 2015 2014 2013
Tangible shareholders' equity/tangible assets (non-GAAP)
Total Shareholders’ Equity (GAAP basis) $884,031 $841,956 $792,237 $608,389 $571,306
Less: goodwill and other intangible assets (295,347) (296,580) (298,289) (178,451) (179,580)
Tax effect of other intangible assets 1,287 1,719 2,284 921 1,316
Tangible shareholders' equity (non-GAAP) 589,971 547,095 496,232 430,859 393,042
Total assets (GAAP basis) 7,060,255 6,943,053 6,318,354 4,964,686 4,533,190
Less: goodwill and other intangible assets (295,347) (296,580) (298,289) (178,451) (179,580)
Tax effect of other intangible assets 1,287 1,719 2,284 921 1,316
Tangible assets (non-GAAP) $6,766,195 $6,648,192 $6,022,349 $4,787,156 $4,354,926
Tangible shareholders' equity/tangible assets (non-GAAP) 8.72% 8.23% 8.24% 9.00% 9.03%
Return on average tangible shareholders' equity (non-GAAP)
Net Income $72,968 $71,392 $67,081 $57,910 $50,539
Plus: amortization of intangibles 1,233 1,615 1,818 1,129 1,590
Tax effect of amortization of intangibles (432) (565) (636) (395) (556)
Net income before amortization of intangibles 73,769 72,442 68,263 58,644 51,573
Total average shareholders’ equity (GAAP Basis) 872,130 823,607 750,069 596,155 548,771
Less: average goodwill and other intangible assets (295,937) (297,377) (278,130) (178,990) (180,338)
Tax effect of other intangible assets 1,493 1,992 2,283 1,109 1,581
Tangible average shareholders' equity (non-GAAP) $577,686 $528,222 $474,222 $418,274 $370,014
Return on average tangible shareholders' equity (non-GAAP) 12.77% 13.71% 14.39% 14.02% 13.94%
Dollars in thousands
Appendix
39
APPENDIX – Non-GAAP Measures
2017 2016 2015 2014 2013
Efficiency ratio (non-GAAP)
Noninterest expense $147,907 $143,232 $136,717 $117,240 $117,392
Net interest income 225,733 203,259 187,551 148,042 139,193
Plus: taxable equivalent adjustment 7,493 7,043 6,123 5,461 4,850
Net interest income (FTE) (non-GAAP) 233,226 210,302 193,674 153,503 144,043
Noninterest income 55,462 54,635 51,033 46,338 51,527
Less: securities (gains) losses, net (3,000) — 34 (41) (5)
Net interest income (FTE) (non-GAAP) plus noninterest income $285,688 $264,937 $244,741 $199,800 $195,565
Efficiency ratio (non-GAAP) 51.77% 54.06% 55.86% 58.67% 60.03%
Appendix
40
APPENDIX – Non-GAAP Measures
2017 2016 2015 2014 2013
Net Interest Margin Rate (FTE) (Non-GAAP)
Total interest income $260,642 $227,774 $203,548 $160,523 $153,756
Less: interest expense (34,909) (24,515) (15,997) (12,481) (14,563)
Net interest income per consolidated statements of net income 225,733 203,259 187,551 148,042 139,193
Plus: taxable equivalent adjustment 7,493 7,043 6,123 5,461 4,850
Net interest income (FTE) (non-GAAP) 233,226 210,302 193,674 153,503 144,043
Purchase accounting adjustment (1,839) (2,952) (6,202) (109) (458)
Purchase accounting net interest income (FTE) (non-GAAP) $231,387 $207,350 $187,472 $153,394 $143,585
Average interest earning assets $6,549,821 $6,067,151 $5,432,862 $4,386,799 $4,111,281
Net Interest Margin 3.45 % 3.35 % 3.45 % 3.37 % 3.39 %
Adjustment to FTE Basis 0.11 % 0.12 % 0.11 % 0.13 % 0.11 %
Net Interest Margin (FTE) (non-GAAP) 3.56 % 3.47 % 3.56 % 3.50 % 3.50 %
Purchase accounting adjustment (0.03)% (0.06)% (0.12)% (0.01)% (0.01)%
Purchase accounting NIM – FTE (non-GAAP) 3.53 % 3.41 % 3.44 % 3.49 % 3.49 %
Dollars in thousands
Appendix
41
APPENDIX – Non-GAAP Measures
2017 2017
Return on Average Equity Return on Tangible Shareholders' Equity
Net Income $72,968 Net Income $72,968
Plus: DTA re-measurement 13,433 Plus: DTA re-measurement 13,433
Adjusted net income (non-GAAP) 86,401 Adjusted net income (non-GAAP) 86,401
Average assets 872,130 Plus: amortization of intangibles 1,233
Plus: DTA re-measurement 589 Tax effect of amortization of intangibles (432)
Average assets (non-GAAP) 872,719 Adjusted net income before amortization of intangibles 87,202
Return on average equity (non-GAAP) 9.90% Average total shareholders' equity 872,130
Plus: DTA re-measurement 589
Less: average goodwill and other intangible assets (295,937)
Return on Average Assets Tax effect of average goodwill and other intangible assets 1,493
Net Income $72,968 Average tangible equity (non-GAAP) $578,275
Plus: DTA re-measurement 13,433 Return on average tangible equity (non-GAAP) 15.08%
Adjusted net income (non-GAAP) 86,401
Diluted Earnings Per Share
Average assets $7,060,232 Net Income $72,968
Plus: DTA re-measurement 589 Plus: DTA re-measurement 13,433
Average assets (non-GAAP) 7,060,821 Adjusted net income (non-GAAP) 86,401
Return on average assets (non-GAAP) 1.22% Average shares outstanding - diluted 34,955
Diluted earnings per share (non-GAAP) $2.47
Dollars in thousands
Appendix
MEMBER FDIC
Full Year 2017