Attached files
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| 8-K - SUSQUEHANNA BANCSHARES, INC. 8-K - SUSQUEHANNA BANCSHARES INC | a50145878.htm |
Exhibit 99.1
Susquehanna Bancshares, Inc. Announces Fourth Quarter and Full Year 2011 Results
LITITZ, Pa.--(BUSINESS WIRE)--January 25, 2012--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced net income applicable to common shareholders for the fourth quarter ended December 31, 2011 was $19.1 million, or $0.12 per diluted share, compared to net income applicable to common shareholders of $9.7 million for the fourth quarter of 2010, or $0.08 per diluted share. Net income applicable to common shareholders for the year ended December 31, 2011 was $54.9 million, or $0.40 per diluted share, compared to net income applicable to common shareholders of $16.3 million, or $0.13 per diluted share, for the year ended December 31, 2010.
“The addition of Abington Bancorp in the fourth quarter significantly increased deposits and loans, but even excluding the gains from Abington we still achieved solid core deposit growth as well as our third consecutive quarter of net new loan growth,” said William J. Reuter, Susquehanna Chairman and Chief Executive Officer. “In addition, we continued our steady improvement in credit quality. During the quarter, our team focused on preparations for the acquisition of Tower Bancorp, which will occur next month, as well as positioning the company to increase internal growth rates and profitability.”
Linked Quarter Results (Fourth Quarter 2011 vs. Third Quarter 2011)
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Net Loans and Leases increased 8% to $10.4 billion compared to
September 30, 2011.*
- Real estate secured-residential loans increased 18%.
- Real estate-construction loans increased 7%.
- Real estate secured-commercial increased 4%.
- Consumer loans increased 3%.
- Commercial loans increased 3%.
- Leases were flat.
-
Total deposits increased 8% to $10.3 billion from September 30, 2011.*
- Interest-bearing demand deposits increased 12%.
- Non-interest bearing demand deposits increased 12%.
- Savings deposits increased 10%.
- Time deposits were flat.
Linked Quarter Results (Fourth Quarter 2011 vs. Third Quarter 2011, Continued)
- Net interest margin for the fourth quarter increased 1 basis point to 3.59% compared to 3.58% for the third quarter of 2011.
- Net charge-offs as a percentage of average loans and leases for the fourth quarter of 2011 were 0.95% compared to 0.96% for the third quarter of 2011. Non-performing assets as a percentage of loans, leases and foreclosed real estate were 1.88% at December 31, 2011 compared to 1.95% at September 30, 2011. The provision for loan and lease losses for the fourth quarter of 2011 was $22 million, compared to $25 million for the third quarter of 2011.
- Return on average assets and average tangible equity(2) for the fourth quarter ended December 31, 2011 finished at 0.50% and 6.98%, respectively. This compared to results of 0.42% and 6.66% for the same measurements, respectively, for the third quarter of 2011.
- Non-core items tax-effected for the fourth quarter include the bargain purchase gain of $39.1 million offset by the debt prepayment penalty of $32.5 million, merger related costs of $8.6 million and security losses of $0.7 million. These items result in a net after-tax expense of $2.7 million.
Full Year/Fourth Quarter Financial Results:
-
Net loans and leases increased 9% to $10.4 billion compared to
December 31, 2010.*
- Real estate secured–residential loans increased 20%.
- Consumer loans increased 20%.
- Real estate secured–commercial loans increased 5%.
- Commercial increased 3%.
- Leases increased 1%.
- Real estate construction loans decreased 5%.
-
Total deposits increased 12% to $10.3 billion from December 31, 2010.*
- Interest-bearing demand deposits increased 22%.
- Non-interest bearing demand deposits increased 14%.
- Savings deposits increased 13%.
- Time deposits were flat.
*Reflects the acquisition of Abington Bancorp on October 1, 2011.
Net interest margin for the year decreased 7 basis points to 3.60% compared to 3.67% for 2010. For the fourth quarter 2011, net interest margin decreased 2 basis points to 3.59% compared to 3.61% for the fourth quarter of 2010.
Full Year/Fourth Quarter Financial Results (Continued):
Common equity was $2.2 billion, or $13.96 per common share at December 31, 2011, compared to $2.0 billion, or $15.27 per common share at December 31, 2010. Tangible book value per common share was $7.28 at December 31, 2011, compared to $7.18 per common share at December 31, 2010.
- Susquehanna’s regulatory capital ratios are as follows:
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At December 31, 2011 |
At September 30, 2011 |
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| Tangible Common Ratio(1) | 8.50% | 7.74% | ||
| Tier 1 Common Ratio | 10.76% | 9.81% | ||
| Leverage Ratio | 10.73% | 10.39% | ||
| Tier 1 Capital Ratio | 13.65% | 12.86% | ||
| Total Risk-Based Capital Ratio | 15.41% | 14.93 % | ||
- Return on average assets and average tangible equity(2) for the year ended December 31, 2011 finished at 0.38% and 6.01%, respectively. This compared to results of 0.23% and 3.69% for the same measurements, respectively, for 2010.
(1)Includes deferred tax liability associated with intangibles of $40.7 million at December 31, 2011 and $40.3 million at September 30, 2011.
(2)A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures – Return on Average Tangible Equity.
Additional Event:
- Shareholders of both companies approved the merger agreement for Susquehanna’s acquisition of Tower Bancorp, Inc., and all necessary regulatory approvals have now been received. The acquisition is on schedule to be completed on February 17, 2012.
Susquehanna will broadcast its fourth quarter 2011 results conference call over the Internet on January 26, 2011 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of fourth quarter and full year 2011 results. The discussion may also include forward-looking information and financial goals. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Web site. The event may be accessed by selecting "Investor Relations" near the top right of the home page then “Overview” and clicking on the fourth quarter webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast will be available on the Web site shortly after the call concludes.
Susquehanna is a financial services holding company with assets of $15 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 241 branch locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $6.9 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. Investor information may be requested on Susquehanna’s Web site at www.susquehanna.net.
This press release contains certain financial information determined by methods other than in accordance with GAAP. Susquehanna’s management uses these non-GAAP measures in its analysis of the company’s performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information.
The presentation of these non-GAAP financial measures is intended to supplement investors’ understanding of Susquehanna’s core business activities. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties including risks relating to Susquehanna’s plans to complete and integrate its pending acquisition of Tower Bancorp, Inc. and the other risks set forth in Susquehanna's filings with the Securities and Exchange Commission. Susquehanna encourages readers of this release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Forward-looking statements speak only as of the date they are made. Susquehanna does not intend to update publicly any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events except as required by law.
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Susquehanna Bancshares, Inc. |
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26 North Cedar Street |
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Lititz, PA 17543 |
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| SUMMARY FINANCIAL INFORMATION | ||||||||||||||
| (Dollars in thousands, except per common share data) | ||||||||||||||
| Twelve Months | ||||||||||||||
| 4Q11 | 4Q10 | 2011 | 2010 | |||||||||||
| Balance Sheet (EOP) | ||||||||||||||
| Investments | $ | 2,431,515 | $ | 2,417,611 | $ | 2,431,515 | $ | 2,417,611 | ||||||
| Loans and leases | 10,447,930 | 9,633,197 | 10,447,930 | 9,633,197 | ||||||||||
| Allowance for loan & lease losses (ALLL) | 188,100 | 191,834 | 188,100 | 191,834 | ||||||||||
| Total assets | 14,974,789 | 13,954,085 | 14,974,789 | 13,954,085 | ||||||||||
| Deposits | 10,290,472 | 9,191,207 | 10,290,472 | 9,191,207 | ||||||||||
| Short-term borrowings | 613,306 | 770,623 | 613,306 | 770,623 | ||||||||||
| Federal Home Loan Bank borrowings | 971,020 | 1,101,620 | 971,020 | 1,101,620 | ||||||||||
| Other long-term debt | 499,347 | 498,918 | 499,347 | 498,918 | ||||||||||
| Shareholders' equity | 2,189,628 | 1,984,802 | 2,189,628 | 1,984,802 | ||||||||||
| Stated book value per common share | 13.96 | 15.27 | 13.96 | 15.27 | ||||||||||
| Tangible book value per common share | 7.28 | 7.18 | 7.28 | 7.18 | ||||||||||
| Average Balance Sheet | ||||||||||||||
| Investments | $ | 2,645,227 | $ | 2,350,981 | $ | 2,529,462 | $ | 2,084,914 | ||||||
| Loans and leases | 10,358,071 | 9,608,510 | 9,803,863 | 9,799,673 | ||||||||||
| Total earning assets | 13,128,969 | 12,084,056 | 12,431,749 | 11,990,084 | ||||||||||
| Total assets | 15,274,808 | 13,984,819 | 14,362,778 | 13,899,885 | ||||||||||
| Deposits | 10,300,061 | 9,253,743 | 9,595,126 | 9,185,673 | ||||||||||
| Other short-term borrowings | 588,657 | 603,579 | 658,477 | 627,704 | ||||||||||
| FHLB borrowings | 1,163,229 | 1,104,962 | 1,123,801 | 1,056,128 | ||||||||||
| Other long-term debt | 666,277 | 712,186 | 684,065 | 713,101 | ||||||||||
| Shareholders' equity | 2,217,036 | 2,081,877 | 2,055,717 | 2,084,840 | ||||||||||
| Income Statement | ||||||||||||||
| Net interest income | $ | 115,201 | $ | 106,573 | $ | 433,150 | $ | 426,506 | ||||||
| Provision for loan and lease losses | 22,000 | 35,000 | 110,000 | 163,000 | ||||||||||
| Noninterest income | 71,347 | 39,788 | 182,668 | 152,148 | ||||||||||
| Noninterest expense | 162,395 | 95,971 | 460,180 | 382,650 | ||||||||||
| Income before taxes | 2,153 | 15,390 | 45,638 | 33,004 | ||||||||||
| Provision for income taxes | (16,976 | ) | 2,417 | (9,267 | ) | 1,157 | ||||||||
| Net income | 19,129 | 12,973 | 54,905 | 31,847 | ||||||||||
| Net income available to common shareholders | 19,129 | 9,739 | 54,905 | 16,275 | ||||||||||
| Basic earnings per common share | 0.12 | 0.08 | 0.40 | 0.13 | ||||||||||
| Diluted earnings per common share | 0.12 | 0.08 | 0.40 | 0.13 | ||||||||||
| Cash dividends paid per common share | 0.03 | 0.01 | 0.08 | 0.04 | ||||||||||
| Asset Quality | ||||||||||||||
| Net charge-offs (NCOs) | $ | 24,860 | $ | 34,281 | $ | 113,734 | $ | 143,534 | ||||||
| Nonaccrual loans & leases | $ | 156,478 | $ | 196,895 | $ | 156,478 | $ | 196,895 | ||||||
| Foreclosed real estate | 41,050 | 18,489 | 41,050 | 18,489 | ||||||||||
| Total nonperforming assets (NPAs) | $ | 197,528 | $ | 215,384 | $ | 197,528 | $ | 215,384 | ||||||
| Restructured loans | $ | 72,852 | $ | 114,566 | $ | 72,852 | $ | 114,566 | ||||||
| Loans & leases 90 days past due | 10,077 | 20,588 | 10,077 | 20,588 | ||||||||||
| Susquehanna Bancshares, Inc. | ||||||||||||
| 26 North Cedar Street | ||||||||||||
| Lititz, PA 17543 | ||||||||||||
| Twelve Months | ||||||||||||
| RATIO ANALYSIS | 4Q11 | 4Q10 | 2011 | 2010 | ||||||||
| Credit Quality | ||||||||||||
| NCOs / Average loans & leases | 0.95 | % | 1.42 | % | 1.16 | % | 1.46 | % | ||||
| NPAs / Loans & leases + foreclosed real estate | 1.88 | % | 2.23 | % | 1.88 | % | 2.23 | % | ||||
| ALLL / Nonaccrual loans & leases | 120.21 | % | 97.43 | % | 120.21 | % | 97.43 | % | ||||
| ALLL / Total loans & leases | 1.80 | % | 1.99 | % | 1.80 | % | 1.99 | % | ||||
| Capital Adequacy | ||||||||||||
| Equity / Assets | 14.62 | % | 14.22 | % | 14.62 | % | 14.22 | % | ||||
| Long-term debt / Equity | 22.81 | % | 25.14 | % | 22.81 | % | 25.14 | % | ||||
| Profitability | ||||||||||||
| Return on average assets | 0.50 | % | 0.37 | % | 0.38 | % | 0.23 | % | ||||
| Return on average equity | 3.42 | % | 2.47 | % | 2.67 | % | 1.53 | % | ||||
| Return on average tangible equity (2) | 6.98 | % | 5.59 | % | 6.01 | % | 3.69 | % | ||||
| Net interest margin | 3.59 | % | 3.61 | % | 3.60 | % | 3.67 | % | ||||
| Efficiency ratio (1) | 66.34 | % | 64.07 | % | 66.83 | % | 64.62 | % | ||||
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(1) |
Excludes Net realized gain on acquisition, Merger related expenses, and Loss on extinguishment of debt |
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(2) |
Supplemental Reporting of Non-GAAP-based Financial Measures-Return on average tangible equity |
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Return on average tangible equity is a non-GAAP-based financial measure calculated using non-GAAP-based amounts. The most directly comparable measure is return on average equity which is calculated using GAAP-based amounts. We calculate return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from our calculation of return on average equity. Management used the return on average tangible equity in order to review our core operating results. Management believes that this is a better measure of our performance. In addition, this is consistent with the treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios. A reconciliation of return on average equity to return on average tangible equity is set forth below.
| 4Q11 | 4Q10 | 2011 | 2010 | |||||||||
| Return on average equity (GAAP basis) | 3.42 | % | 2.47 | % | 2.67 | % | 1.53 | % | ||||
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Effect of excluding average intangible assets and related amortization |
3.56 | % | 3.12 | % | 3.34 | % | 2.16 | % | ||||
| Return on average tangible equity | 6.98 | % | 5.59 | % | 6.01 | % | 3.69 | % | ||||
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Susquehanna Bancshares, Inc. |
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26 North Cedar Street |
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Lititz, PA 17543 |
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| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| December 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (in thousands, except share data) | ||||||||
| Assets | ||||||||
| Cash and due from banks | $ | 276,384 | $ | 200,646 | ||||
| Unrestricted short-term investments | 55,761 | 52,252 | ||||||
| Cash and cash equivalents | 332,145 | 252,898 | ||||||
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Interest-bearing deposits held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities |
5,015 | 7,260 | ||||||
| Restricted short-term investments | 60,910 | 34,435 | ||||||
| Securities available for sale | 2,423,107 | 2,408,943 | ||||||
| Securities held to maturity (fair values approximate $8,408 and $8,668) | 8,408 | 8,668 | ||||||
| Loans and leases, net of unearned income | 10,257,161 | 9,417,801 | ||||||
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Loans held by consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities |
190,769 | 215,396 | ||||||
| Less: Allowance for loan and lease losses | 188,100 | 191,834 | ||||||
| Net loans and leases | 10,259,830 | 9,441,363 | ||||||
| Premises and equipment, net | 168,382 | 165,557 | ||||||
| Other real estate and foreclosed assets | 41,716 | 19,962 | ||||||
| Accrued income receivable | 36,820 | 36,121 | ||||||
| Bank-owned life insurance | 405,296 | 359,579 | ||||||
| Goodwill | 1,018,031 | 1,018,031 | ||||||
| Intangible assets with finite lives | 29,081 | 34,076 | ||||||
| Other assets | 186,048 | 167,192 | ||||||
| Total assets | $ | 14,974,789 | $ | 13,954,085 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Deposits: | ||||||||
| Demand | $ | 1,569,811 | $ | 1,372,235 | ||||
| Interest-bearing demand | 4,439,488 | 3,646,714 | ||||||
| Savings | 868,709 | 767,852 | ||||||
| Time | 2,157,282 | 2,168,503 | ||||||
| Time of $100 or more | 1,255,182 | 1,235,903 | ||||||
| Total deposits | 10,290,472 | 9,191,207 | ||||||
| Federal Home Loan Bank short-term borrowings | 900,000 | 300,000 | ||||||
| Other short-term borrowings | 613,306 | 770,623 | ||||||
| Federal Home Loan Bank long-term borrowings | 71,020 | 801,620 | ||||||
| Other long-term debt | 176,030 | 176,038 | ||||||
| Junior subordinated debentures | 323,317 | 322,880 | ||||||
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Long-term debt of consolidated variable interest entities for which creditors do not have recourse to Susquehanna's general credit |
157,379 | 207,036 | ||||||
| Accrued interest, taxes, and expenses payable | 50,670 | 46,449 | ||||||
| Deferred taxes | 25,827 | 33,729 | ||||||
| Other liabilities | 177,140 | 119,701 | ||||||
| Total liabilities | 12,785,161 | 11,969,283 | ||||||
| Shareholders' equity: | ||||||||
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Common stock, $2.00 par value, 400,000,000 shares authorized. Issued: 157,067,887 at December 31, 2011 and 129,965,635 at December 31, 2010 |
314,136 | 259,931 | ||||||
| Treasury stock, at cost. 200,748 at December 31, 2011 and 0 at December 31, 2010 | (1,263 | ) | 0 | |||||
| Additional paid-in capital | 1,397,152 | 1,301,042 | ||||||
| Retained earnings | 525,657 | 481,964 | ||||||
| Accumulated other comprehensive loss, net of taxes of $25,863 and $32,526 | (46,054 | ) | (58,135 | ) | ||||
| Total shareholders' equity | 2,189,628 | 1,984,802 | ||||||
| Total liabilities and shareholders' equity | $ | 14,974,789 | $ | 13,954,085 | ||||
| Susquehanna Bancshares, Inc. | ||||||||||||||||
| 26 North Cedar Street | ||||||||||||||||
| Lititz, PA 17543 | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Interest Income: | ||||||||||||||||
| Loans and leases, including fees | $ | 134,753 | $ | 132,170 | $ | 516,984 | $ | 538,699 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 13,146 | 14,880 | 57,846 | 55,835 | ||||||||||||
| Tax-exempt | 3,887 | 4,047 | 15,831 | 14,997 | ||||||||||||
| Dividends | 987 | 1,018 | 3,999 | 3,982 | ||||||||||||
| Short-term investments | 28 | 53 | 108 | 182 | ||||||||||||
| Total interest income | 152,801 | 152,168 | 594,768 | 613,695 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Interest-bearing demand and savings | 5,775 | 5,977 | 22,484 | 23,452 | ||||||||||||
| Time | 11,409 | 17,521 | 54,294 | 80,511 | ||||||||||||
| Federal Home Loan Bank short-term borrowings | 2,955 | 2,352 | 11,376 | 3,101 | ||||||||||||
| Other short-term borrowings | 2,179 | 1,879 | 8,133 | 4,156 | ||||||||||||
| Federal Home Loan Bank long-term borrowings | 6,881 | 8,607 | 30,648 | 40,451 | ||||||||||||
| Other long-term debt | 8,401 | 9,259 | 34,683 | 35,518 | ||||||||||||
| Total interest expense | 37,600 | 45,595 | 161,618 | 187,189 | ||||||||||||
| Net interest income | 115,201 | 106,573 | 433,150 | 426,506 | ||||||||||||
| Provision for loan and lease losses | 22,000 | 35,000 | 110,000 | 163,000 | ||||||||||||
| Net interest income, after provision for loan and lease losses | 93,201 | 71,573 | 323,150 | 263,506 | ||||||||||||
| Noninterest Income: | ||||||||||||||||
| Service charges on deposit accounts | 7,689 | 8,588 | 31,728 | 34,467 | ||||||||||||
| Vehicle origination and servicing fees | 1,984 | 1,624 | 7,862 | 6,826 | ||||||||||||
| Asset management fees | 6,821 | 7,083 | 28,153 | 28,362 | ||||||||||||
| Income from fiduciary-related activities | 1,827 | 1,884 | 7,333 | 7,259 | ||||||||||||
| Commissions on brokerage, life insurance and annuity sales | 1,697 | 2,041 | 8,202 | 7,567 | ||||||||||||
| Commissions on property and casualty insurance sales | 3,638 | 3,160 | 14,047 | 12,030 | ||||||||||||
| Other commissions and fees | 4,147 | 6,946 | 23,728 | 24,661 | ||||||||||||
| Income from bank-owned life insurance | 1,539 | 1,116 | 4,931 | 4,965 | ||||||||||||
| Net gain on sale of loans and leases | 3,324 | 3,605 | 12,747 | 10,918 | ||||||||||||
| Net realized gain on acquisition | 39,143 | 0 | 39,143 | 0 | ||||||||||||
| Net realized gain (loss) on sales of securities | (706 | ) | 2,123 | 3,878 | 13,408 | |||||||||||
| Total other-than-temporary impairment, net of recoveries | (1,132 | ) | (839 | ) | (6,392 | ) | (4,843 | ) | ||||||||
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Portion of loss (gain) recognized in other comprehensive income (before taxes) |
828 | 8 | 3,028 | 952 | ||||||||||||
| Net impairment losses recognized in earnings | (304 | ) | (831 | ) | (3,364 | ) | (3,891 | ) | ||||||||
| Other | 548 | 2,449 | 4,280 | 5,576 | ||||||||||||
| Total noninterest income | 71,347 | 39,788 | 182,668 | 152,148 | ||||||||||||
| Noninterest Expenses: | ||||||||||||||||
| Salaries and employee benefits | 51,515 | 45,563 | 209,235 | 191,806 | ||||||||||||
| Occupancy | 9,948 | 9,036 | 37,446 | 35,997 | ||||||||||||
| Furniture and equipment | 3,148 | 3,225 | 12,596 | 13,647 | ||||||||||||
| Advertising and marketing | 2,846 | 3,730 | 11,470 | 12,606 | ||||||||||||
| FDIC insurance | 4,219 | 3,480 | 16,602 | 16,763 | ||||||||||||
| Legal fees | 2,542 | 2,364 | 9,302 | 8,786 | ||||||||||||
| Amortization of intangible assets | 2,290 | 2,349 | 8,705 | 9,438 | ||||||||||||
| Vehicle lease disposal | 2,851 | 3,448 | 10,584 | 14,543 | ||||||||||||
| Merger related | 12,211 | 0 | 14,991 | 0 | ||||||||||||
| Loss on extinguishment of debt | 50,020 | 0 | 50,020 | 0 | ||||||||||||
| Other | 20,805 | 22,776 | 79,229 | 79,064 | ||||||||||||
| Total noninterest expenses | 162,395 | 95,971 | 460,180 | 382,650 | ||||||||||||
| Income before income taxes | 2,153 | 15,390 | 45,638 | 33,004 | ||||||||||||
| Provision for income taxes | (16,976 | ) | 2,417 | (9,267 | ) | 1,157 | ||||||||||
| Net Income | 19,129 | 12,973 | 54,905 | 31,847 | ||||||||||||
| Preferred stock dividends and accretion | 0 | 3,234 | 0 | 15,572 | ||||||||||||
| Net Income Available to Common Shareholders | $ | 19,129 | $ | 9,739 | $ | 54,905 | $ | 16,275 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.08 | $ | 0.40 | $ | 0.13 | ||||||||
| Diluted | $ | 0.12 | $ | 0.08 | $ | 0.40 | $ | 0.13 | ||||||||
| Cash dividends per common share | $ | 0.03 | $ | 0.01 | $ | 0.08 | $ | 0.04 | ||||||||
| Average common shares outstanding: | ||||||||||||||||
| Basic | 156,492 | 129,723 | 136,509 | 121,031 | ||||||||||||
| Diluted | 156,802 | 129,760 | 136,876 | 121,069 | ||||||||||||
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Susquehanna Bancshares, Inc. |
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26 North Cedar Street |
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Lititz, PA 17543 |
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| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||
| For the Three-month Period Ended | For the Three-month Period Ended | |||||||||||||
| December 31, 2011 | December 31, 2010 | |||||||||||||
| Average | Average | |||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||
| Assets | ||||||||||||||
| Short-term investments | $125,671 | $28 | 0.09 | $124,565 | $53 | 0.17 | ||||||||
| Investment securities: | ||||||||||||||
| Taxable | 2,253,121 | 14,133 | 2.49 | 1,947,974 | 15,899 | 3.24 | ||||||||
| Tax-advantaged | 392,106 | 5,980 | 6.05 | 403,007 | 6,225 | 6.13 | ||||||||
| Total investment securities | 2,645,227 | 20,113 | 3.02 | 2,350,981 | 22,124 | 3.73 | ||||||||
| Loans and leases, (net): | ||||||||||||||
| Taxable | 10,027,865 | 131,993 | 5.22 | 9,363,080 | 129,863 | 5.50 | ||||||||
| Tax-advantaged | 330,206 | 4,246 | 5.10 | 245,430 | 3,549 | 5.74 | ||||||||
| Total loans and leases | 10,358,071 | 136,239 | 5.22 | 9,608,510 | 133,412 | 5.51 | ||||||||
| Total interest-earning assets | 13,128,969 | 156,380 | 4.73 | 12,084,056 | 155,589 | 5.11 | ||||||||
| Allowance for loan and lease losses | (192,794 | ) | (189,099 | ) | ||||||||||
| Other non-earning assets | 2,338,633 | 2,089,862 | ||||||||||||
| Total assets | $15,274,808 | $13,984,819 | ||||||||||||
| Liabilities | ||||||||||||||
| Deposits: | ||||||||||||||
| Interest-bearing demand | $4,393,811 | 5,482 | 0.49 | $3,638,249 | 5,684 | 0.62 | ||||||||
| Savings | 875,522 | 293 | 0.13 | 765,389 | 293 | 0.15 | ||||||||
| Time | 3,502,751 | 11,409 | 1.29 | 3,470,080 | 17,521 | 2.00 | ||||||||
| Other short-term borrowings | 588,657 | 2,179 | 1.47 | 603,579 | 1,879 | 1.24 | ||||||||
| FHLB borrowings | 1,163,229 | 9,836 | 3.35 | 1,104,962 | 10,959 | 3.93 | ||||||||
| Long-term debt | 666,277 | 8,401 | 5.00 | 712,186 | 9,259 | 5.16 | ||||||||
| Total interest-bearing liabilities | 11,190,247 | 37,600 | 1.33 | 10,294,445 | 45,595 | 1.76 | ||||||||
| Demand deposits | 1,527,977 | 1,380,025 | ||||||||||||
| Other liabilities | 339,548 | 228,472 | ||||||||||||
| Total liabilities | 13,057,772 | 11,902,942 | ||||||||||||
| Equity | 2,217,036 | 2,081,877 | ||||||||||||
| Total liabilities & shareholders' equity | $15,274,808 | $13,984,819 | ||||||||||||
|
Net interest income / yield on average earning assets |
$118,780 | 3.59 | $109,994 | 3.61 | ||||||||||
|
1. |
Average loan balances include non accrual loans. |
|
|
2. |
Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%. |
|
|
3. |
For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
|
|
Susquehanna Bancshares, Inc. |
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|
26 North Cedar Street |
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|
Lititz, PA 17543 |
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| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||
| For the Twelve-month Period Ended | For the Twelve-month Period Ended | |||||||||||||
| December 31, 2011 | December 31, 2010 | |||||||||||||
| Average | Average | |||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||
| Assets | ||||||||||||||
| Short-term investments | $98,424 | $108 | 0.11 | $105,497 | $182 | 0.17 | ||||||||
| Investment securities: | ||||||||||||||
| Taxable | 2,129,908 | 61,845 | 2.90 | 1,720,263 | 59,818 | 3.48 | ||||||||
| Tax-advantaged | 399,554 | 24,355 | 6.10 | 364,651 | 23,072 | 6.33 | ||||||||
| Total investment securities | 2,529,462 | 86,200 | 3.41 | 2,084,914 | 82,890 | 3.98 | ||||||||
| Loans and leases, (net): | ||||||||||||||
| Taxable | 9,492,521 | 505,607 | 5.33 | 9,545,296 | 528,570 | 5.54 | ||||||||
| Tax-advantaged | 311,342 | 17,503 | 5.62 | 254,377 | 15,583 | 6.13 | ||||||||
| Total loans and leases | 9,803,863 | 523,110 | 5.34 | 9,799,673 | 544,153 | 5.55 | ||||||||
| Total interest-earning assets | 12,431,749 | 609,418 | 4.90 | 11,990,084 | 627,225 | 5.23 | ||||||||
| Allowance for loan and lease losses | (194,746 | ) | (184,304 | ) | ||||||||||
| Other non-earning assets | 2,125,775 | 2,094,105 | ||||||||||||
| Total assets | $14,362,778 | $13,899,885 | ||||||||||||
| Liabilities | ||||||||||||||
| Deposits: | ||||||||||||||
| Interest-bearing demand | $3,884,182 | 21,323 | 0.55 | $3,481,728 | 22,279 | 0.64 | ||||||||
| Savings | 815,066 | 1,161 | 0.14 | 766,210 | 1,173 | 0.15 | ||||||||
| Time | 3,482,801 | 54,294 | 1.56 | 3,628,219 | 80,511 | 2.22 | ||||||||
| Other short-term borrowings | 658,477 | 8,133 | 1.24 | 627,704 | 4,156 | 0.66 | ||||||||
| FHLB borrowings | 1,123,801 | 42,024 | 3.74 | 1,056,128 | 43,552 | 4.12 | ||||||||
| Long-term debt | 684,065 | 34,683 | 5.07 | 713,101 | 35,518 | 4.98 | ||||||||
| Total interest-bearing liabilities | 10,648,392 | 161,618 | 1.52 | 10,273,090 | 187,189 | 1.82 | ||||||||
| Demand deposits | 1,413,077 | 1,309,516 | ||||||||||||
| Other liabilities | 245,592 | 232,439 | ||||||||||||
| Total liabilities | 12,307,061 | 11,815,045 | ||||||||||||
| Equity | 2,055,717 | 2,084,840 | ||||||||||||
| Total liabilities & shareholders' equity | $14,362,778 | $13,899,885 | ||||||||||||
|
Net interest income / yield on average earning assets |
$447,800 | 3.60 | $440,036 | 3.67 | ||||||||||
|
1. |
Average loan balances include non accrual loans. |
|
|
2. |
Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%. |
|
|
3. |
For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
|
|
Susquehanna Bancshares, Inc. |
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| 26 North Cedar Street | ||||||||||||||||
| Lititz, PA 17543 | ||||||||||||||||
| Loans and Leases | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Total Loans and Leases | ||||||||||||||||
| 12/31/11 | 12/31/10 | |||||||||||||||
| Commercial, financial, and agricultural | $ | 1,871,027 | $ | 1,816,519 | ||||||||||||
| Real estate - construction | 829,221 | 877,223 | ||||||||||||||
| Real estate secured - residential | 3,212,562 | 2,666,692 | ||||||||||||||
| Real estate secured - commercial | 3,136,887 | 2,998,176 | ||||||||||||||
| Consumer | 722,329 | 603,084 | ||||||||||||||
| Leases | 675,904 | 671,503 | ||||||||||||||
| Total loans and leases | $ | 10,447,930 | $ | 9,633,197 | ||||||||||||
| Nonaccrual Loans and Leases | ||||||||||||||||
| 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | ||||||||||||
| Commercial, financial, and agricultural | $ | 14,385 | $ | 14,421 | $ | 18,219 | $ | 19,972 | $ | 20,012 | ||||||
| Real estate - construction | 37,727 | 37,487 | 44,305 | 56,446 | 57,779 | |||||||||||
| Real estate secured - residential | 41,922 | 41,238 | 51,047 | 55,930 | 50,973 | |||||||||||
| Real estate secured - commercial | 61,497 | 65,377 | 73,346 | 77,533 | 65,313 | |||||||||||
| Consumer | 0 | 0 | 0 | 0 | 1 | |||||||||||
| Leases | 947 | 1,576 | 3,816 | 3,060 | 2,817 | |||||||||||
| Total nonaccrual loans and leases | $ | 156,478 | $ | 160,099 | $ | 190,733 | $ | 212,941 | $ | 196,895 | ||||||
| Restructured Loans | ||||||||||||||||
| 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | ||||||||||||
| Commercial, financial, and agricultural | $ | 12,181 | $ | 11,820 | $ | 14,387 | $ | 14,999 | $ | 15,877 | ||||||
| Real estate - construction | 3,902 | 0 | 0 | 298 | 6,125 | |||||||||||
| Real estate secured - residential | 17,634 | 13,389 | 12,734 | 9,363 | 11,300 | |||||||||||
| Real estate secured - commercial | 38,565 | 36,974 | 34,874 | 53,799 | 81,034 | |||||||||||
| Consumer | 570 | 148 | 148 | 0 | 230 | |||||||||||
| Total restructured loans | $ | 72,852 | $ | 62,331 | $ | 62,143 | $ | 78,459 | $ | 114,566 | ||||||
| Net Charge-offs (Recoveries) | ||||||||||||||||
| 4Q 2011 | 3Q 2011 | 2Q 2011 | 1Q 2011 | 4Q 2010 | ||||||||||||
| Commercial, financial, and agricultural | $ | 1,557 | $ | 5,322 | $ | 9,138 | $ | 3,700 | $ | 2,335 | ||||||
| Real estate - construction | 8,484 | 6,489 | 6,352 | 8,154 | 20,607 | |||||||||||
| Real estate secured - residential | 2,641 | 5,262 | 5,042 | 3,803 | 5,477 | |||||||||||
| Real estate secured - commercial | 10,897 | 5,612 | 10,467 | 14,442 | 4,132 | |||||||||||
| Consumer | 503 | (99 | ) | 67 | 2,079 | 366 | ||||||||||
| Leases | 778 | 746 | 875 | 1,423 | 1,364 | |||||||||||
| Total net charge-offs | $ | 24,860 | $ | 23,332 | $ | 31,941 | $ | 33,601 | $ | 34,281 | ||||||
| Susquehanna Bancshares, Inc. | ||||||||||||
| Loan Credit Quality Analysis | ||||||||||||
| Fourth Quarter 2011 | ||||||||||||
| ($ Thousands) | ||||||||||||
| Pro Forma | ||||||||||||
| Susquehanna | Abington | Susquehanna | Susquehanna | |||||||||
| 12/31/2011 | 9/30/2011 |
12/31/2011(1) |
9/30/2011 |
$ Change |
% Change | |||||||
| Nonaccrual | $156,478 | $13,267 | $143,211 | $160,099 | ($16,888) | -10.55% | ||||||
| OREO | 41,050 | 19,974 | 21,076 | 29,563 | (8,487) | -28.71% | ||||||
| Restructured | 72,852 | 12,866 | 59,986 | 62,331 | (2,345) | -3.76% | ||||||
| 90 days past due | 10,077 | 2,547 | 7,530 | 13,034 | (5,504) | -42.23% | ||||||
| Abington | Pro Forma | |||||||||||
| Susquehanna | Credit Mark | Susquehanna | Susquehanna | |||||||||
| 12/31/2011 | 12/31/2011 | 12/31/2011(1) | 9/30/2011 | |||||||||
| Reserve | $188,100 | $25,228 | $213,328 | $190,960 | ||||||||
| Reserve / nonaccrual | 120.21% | 136.33% | 119.28% | |||||||||
| Reserve / loans | 1.80% | 2.04% | 1.97% | |||||||||
| (1) The unaudited pro forma loan credit quality analysis shows the impact on Susquehanna Bancshares, Inc. as of December 31, 2011, of removing the loan credit quality amounts of Abington Bancorp, Inc. as of September 30, 2011. The unaudited pro forma loan credit quality analysis also shows the impact on Susquehanna Bancshares, Inc. as of December 31, 2011, of including the estimated amount of an adjustment for credit quality incorporated into the measurement of the fair value of loans acquired in the Abington, Inc. acquisition. In preparing the unaudited pro forma information, Susquehanna Bancshares, Inc. assumed no adjustments to the historical amount of Abington's identification of its reported loan credit quality amounts as of September 30, 2011. The adjustments are made to remove the effect of the acquired loans on the analysis of loan credit quality for Susquehanna Bancshares, Inc. as of December 31, 2011. |
| Susquehanna Bancshares, Inc. | |||||||||||||||
| Loan Analysis | |||||||||||||||
| Fourth Quarter 2011 | |||||||||||||||
| ($ Thousands) | |||||||||||||||
| Pro Forma | |||||||||||||||
| Susquehanna | Abington | Susquehanna | Susquehanna | ||||||||||||
| 12/31/2011 | 9/30/2011 |
12/31/2011(1) |
9/30/2011 |
$ Change |
% Change | ||||||||||
| Commercial, financial, and agricultural | $1,871,027 | $16,867 | $1,854,160 | $1,810,664 | $43,496 | 2.40 | % | ||||||||
| Real estate - construction | 829,221 | 96,790 | 732,431 | 771,734 | (39,303 | ) | -5.09 | % | |||||||
| Real estate secured - residential | 3,212,562 | 430,062 | 2,782,500 | 2,728,934 | 53,566 | 1.96 | % | ||||||||
| Real estate secured - commercial | 3,136,887 | 89,693 | 3,047,194 | 3,013,787 | 33,407 | 1.11 | % | ||||||||
| Consumer | 722,329 | 273 | 722,056 | 698,804 | 23,252 | 3.33 | % | ||||||||
| Leases | 675,904 | 0 | 675,904 | 678,746 | (2,842 | ) | -0.42 | % | |||||||
| Total loans and leases | $10,447,930 | $633,685 | $9,814,245 | $9,702,669 | $111,576 | 1.15 | % | ||||||||
| (1) Pro forma presentation represents Susquehanna 12/31/11 balances net of Abington 9/30/11 balances. | |||||||||||||||
| Susquehanna Bancshares, Inc. | |||||||||||||||
| Deposit Analysis | |||||||||||||||
| Fourth Quarter 2011 | |||||||||||||||
| ($ Thousands) | |||||||||||||||
| Pro Forma | |||||||||||||||
| Susquehanna | Abington | Susquehanna | Susquehanna | ||||||||||||
| 12/31/2011 | 9/30/2011 |
12/31/2011(1) |
9/30/2011 |
$ Change |
% Change | ||||||||||
| Demand | $1,569,811 | $43,370 | $1,526,441 | $1,404,366 | $122,075 | 8.69 | % | ||||||||
| Interest-bearing demand | 4,439,488 | 325,192 | 4,114,296 | 3,964,428 | 149,868 | 3.78 | % | ||||||||
| Savings | 868,709 | 94,493 | 774,216 | 787,536 | (13,320 | ) | -1.69 | % | |||||||
| Time <$100 | 2,157,282 | 196,562 | 1,960,720 | 2,024,999 | (64,279 | ) | -3.17 | % | |||||||
| Time>$100 | 1,255,182 | 180,396 | 1,074,786 | 1,377,302 | (302,516 | ) | -21.96 | % | |||||||
| Totals | $10,290,472 | $840,013 | $9,450,459 | $9,558,631 | ($108,172 | ) | -1.13 | % | |||||||
| (1) Pro forma presentation represents Susquehanna 12/31/11 balances net of Abington 9/30/11 balances. | |||||||||||||||
| Susquehanna Bancshares, Inc. | ||||||
| Tax Reconciliation | ||||||
| ($ Thousands) | ||||||
| 4Q 2011 | Year 2011 | |||||
| Pre-tax income(1) | $2,153 | $45,638 | ||||
| Bargain purchase gain | (39,143 | ) | (39,143 | ) | ||
| Permanent and other differences | (9,520 | ) | (31,884 | ) | ||
| Tax loss | (46,510 | ) | (25,389 | ) | ||
| Tax rate | 36.50 | % | 36.50 | % | ||
| Tax benefit | ($16,976 | ) | ($9,267 | ) | ||
| (1) | Pre-tax income includes the loss on extinguishment of debt and merger-related expenses. |
CONTACT:
Susquehanna Bancshares, Inc.
Abram G. Koser, Vice
President, Investor Relations
717-625-6305
ir@susquehanna.net