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| 8-K - 8-K - PEOPLES BANCORP INC | q420128ker.htm |
P.O. BOX 738 - MARIETTA, OHIO - 45750 | NEWS RELEASE | ||
www.peoplesbancorp.com | |||
FOR IMMEDIATE RELEASE | Contact: | Edward G. Sloane | |
January 22, 2013 | Chief Financial Officer and Treasurer | ||
(740) 373-3155 | |||
PEOPLES BANCORP INC. ANNOUNCES 9% INCREASE IN 4TH QUARTER EARNINGS; FULL YEAR 2012 EPS UP 79%
_____________________________________________________________________
Summary fourth quarter and full year 2012 results:
• | Diluted earnings per common share were $0.36 for the quarter and $1.92 for the year. |
◦ | Year-over-year increases of 9% and 79%, respectively. |
◦ | Repayment of Peoples' trust preferred securities during the fourth quarter resulted in a $1.0 million pre-tax loss. |
◦ | Fourth quarter earnings impacted by other non-recurring expenses totaling $982,000. |
• | Pre-provision net revenue was higher than the prior year but decreased slightly on a linked quarter basis. |
◦ | Total revenue increased 4% year-over-year compared to a 3% increase in operating expenses. |
◦ | Net interest margin benefited from sizable prepayment fees and interest recovered on nonperforming loans. |
◦ | Non-interest expense was impacted by higher employee benefit costs and additional rebranding expenses. |
• | Reserve releases continued due to favorable asset quality trends. |
◦ | Nonperforming assets were 1.48% of gross loans and OREO at December 31, 2012 versus 3.41% a year ago. |
◦ | Net charge-offs were 0.12% of average loans in 2012 versus 1.16% in 2011. |
◦ | Allowance for loan losses fell to 1.81% of gross loans, from 1.88% at September 30 and 2.53% at year-end 2011. |
◦ | Recovery of loan losses of $0.5 million for the quarter and $4.7 million for the full year. |
• | Higher retail deposit balances while loan production remained steady. |
◦ | Retail deposits were up 3% over the prior quarter-end and 12% higher than year-end 2011. |
◦ | Non-mortgage consumer loan balances experienced continued growth. |
◦ | Fourth quarter average loan balances increased $29 million from the linked quarter and $47 million year-over-year. |
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today announced results for the quarter and year ended December 31, 2012. Net income totaled $3.9 million for the fourth quarter of 2012, representing earnings per diluted common share of $0.36. In comparison, earnings per diluted common share were $0.33 for the fourth quarter of 2011 and $0.45 for the third quarter of 2012. For the year, earnings per diluted common share were $1.92 in 2012 versus $1.07 in 2011.
"We are pleased with the significant improvement in both earnings and overall shareholder value in 2012," said Chuck Sulerzyski, President and Chief Executive Officer. “Most notably, revenue growth outpaced the increase in operating expenses, reversing recent negative trends. We also made good progress towards restoring our asset quality metrics to pre-2008 levels, which led to sizable reserve releases during 2012. Modest loan growth occurred as increased production was augmented by our first banking acquisition since 2004. Our common shareholders saw the value of their investment increase, as Peoples' stock price grew 38% during the year and the quarterly dividend was increased to $0.12 per share."
Sulerzyski continued, "More exciting than our financial performance in 2012 is the strategic investments we are making for future growth. These include the expansion of our consumer lending activities, completion of acquisitions in each of our business lines, the refresh of our image with a new brand and the repayment of our high-cost trust preferred securities. Further, each employee is committed to working together and building success for our customers, shareholders and the communities we serve."
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As previously announced, Peoples repaid the entire $23 million outstanding principal amount of its junior subordinated debentures and related trust preferred securities on December 19, 2012. This transaction resulted in Peoples incurring a pre-tax loss of $1.0 million for the redemption premium and unamortized issuance costs. Peoples funded the repayment with a term note from an unaffiliated financial institution at a significantly lower interest rate. As a result, Peoples will realize an annual interest expense savings of $1.1 million beginning in 2013.
Net interest income grew to $14.1 million for the fourth quarter of 2012, 6% higher than the linked quarter. This improvement was largely attributable to a full quarter's impact of the Sistersville acquisition completed late in the third quarter of 2012. Net interest margin improved to 3.42%, compared to 3.30% for the linked quarter. Fourth quarter net interest income and margin also benefited from $330,000 of additional interest income for prepayment fees and interest recovered on nonaccrual loans. This one-time income added 7 basis points to the fourth quarter net interest margin. Compared to last year, growth in earning assets produced slightly higher net interest income for the fourth quarter and full year of 2012. However, the sustained low interest rate environment caused asset yields to decline more than Peoples could reduce its funding costs. As a result, Peoples experienced slight net interest margin compression from the prior year periods.
"Net interest income and margin exceeded our expectations for the quarter, due in part to the one-time income realized in the fourth quarter," said Edward Sloane, Chief Financial Officer and Treasurer. "We also experienced slower prepayments within our investment portfolio as long-term interest rates remained relatively stable throughout the quarter. The corresponding reduction in premium amortization eased the pressure on our asset yields. As we begin 2013, net interest income and margin will benefit from the repayment of our high-cost trust preferred securities in mid-December. However, our ability to sustain the improvement will depend upon meaningful loan growth. The balance sheet also remains positioned to benefit from any steepening of the yield curve."
During 2012, Peoples experienced sustained growth in non-interest income, with a 6% year-over-year increase for both the fourth quarter and entire year. On a linked quarter basis, non-interest income was up 3%. A key driver of these increases was stronger mortgage banking income. Historically low mortgage interest rates throughout most of 2012 resulted in higher refinancing activity. Growth in managed assets occurred during 2012 due to acquisitions and a general recovery within the U.S. financial markets. As a result, fourth quarter trust and investment income was 13% higher than the prior year. Electronic banking income remained strong throughout the year due to a steady increase in the volume of debit card transactions. Insurance income, although down on a linked quarter basis due to the timing of policy renewals, was 7% higher in the fourth quarter compared to the prior year, reflecting the rising trend in commercial insurance premiums within the industry and new business generated by producers.
"We returned to positive operating leverage in 2012 due to the strength of our fee-based businesses and disciplined expense management," said Sulerzyski. "In addition to significantly higher mortgage-banking activity, double-digit increases occurred within our trust and investment income and e-banking revenues. On the expense side, most of the increase was the result of higher sales and incentive compensation, plus costs associated with acquisition activities and our new brand. We also ramped up our charitable giving in 2012, both directly to local organizations and through increased contributions to our private foundation."
Non-interest expense totaled $17.1 million for the fourth quarter of 2012, versus $15.7 million for the linked quarter and $16.6 million for the fourth quarter of 2011. In the fourth quarter, Peoples incurred $982,000 of additional expenses related to pension settlement charges, ongoing rebranding efforts, a one-time stock award to certain employees, and acquisition related costs. Total non-interest expense also was higher in the fourth quarter due to a full quarter's impact of the Sistersville acquisition. Fourth quarter salary and employee benefit costs, while 7% lower than the prior year, increased 8% from the linked quarter, due almost entirely to the pension settlement charges and one-time stock-based compensation expense. For the year, total non-interest expense was $63.5 million in 2012, up 3% from the prior year. Most of this increase was the result of additional sales and incentive compensation due to stronger than expected revenue growth. Other significant contributing factors to the increase were $641,000 of acquisition related expenses and $421,000 of rebranding costs.
At December 31, 2012, gross portfolio loan balances were $985.2 million, comparable to the prior quarter-end and up 5% from $938.5 million at year-end 2011. Loan growth occurred in 2012 due in part to commercial lending opportunities within Peoples' market area, coupled with increased consumer lending. Loan balances also benefited from the Sistersville acquisition during the third quarter. As a result, average loan balances were higher for both the fourth quarter of 2012 and full year compared to prior periods.
“Modest loan growth occurred in 2012 as increased production was largely offset by ongoing efforts to enhance the quality of our loan portfolio,” said Sloane. "New loan originations were over 50% higher than the prior year as our bankers were very active throughout the year. We also made progress towards our strategic goal of creating a loan portfolio with better risk dynamics and greater diversity. During 2012, non-mortgage commercial and consumer loans
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grew 28% and 16%, respectively, while commercial mortgage balances fell 8%. At the same time, we significantly reduced the level of problem loans which improved overall asset quality."
Total nonperforming assets were $14.7 million, or 1.48% of total loans plus OREO, at December 31, 2012, versus $16.7 million and 1.66% at September 30, 2012. This 12% reduction occurred primarily as a result of paydowns on nonaccrual commercial loans. In 2012, Peoples reduced its nonperforming assets by $17.6 million, or 54%. Total criticized loans, which are those classified as watch, substandard or doubtful, also have decreased $56.7 million, or 37%, since year-end 2011. This reduction occurred primarily as a result of $38.3 million in principal paydowns. Peoples' asset quality also benefited from the improvement in the financial condition of the borrowers, which allowed some loans to be upgraded during 2012.
The sustained improvement in asset quality during 2012 has resulted in a significant decrease in Peoples' allowance for loan losses. At year-end 2012, the allowance for loan losses was 1.81% of total loans, compared to 1.88% and 2.53% at September 30, 2012 and December 31, 2011, respectively. Even with this reduction, the allowance for loan losses was 128.9% of nonperforming loans, up from 120.0% at the prior quarter-end and 79.0% at year-end 2011. Peoples continues to closely evaluate credit quality, including the continued elevated exposure to commercial real estate and certain sectors. The evaluation of the allowance for loan losses recognizes these remaining risks, as well as emerging risks and the uneven economic environment across Peoples' market area.
During the fourth quarter, retail deposit balances grew $39.4 million, or 3%, as non-interest-bearing deposit balances increased $28.7 million and interest-bearing balances were up $10.7 million. Non-interest-bearing deposit growth occurred primarily as a result of increases in commercial account balances. Peoples continued to experience a mix shift within its interest-bearing deposits, with growth in low-cost savings and checking balances more than offsetting a decline in retail certificates of deposit. For the year, retail deposit balances increased $149.7 million, or 12%, as growth in non-interest-bearing deposits was nearly matched by increased interest-bearing balances. This deposit growth allowed Peoples to reduce borrowed funds by $40.0 million, or 18%, during 2012.
At December 31, 2012, Peoples' Tier 1 risk-based capital ratio was 14.06%, compared to 15.85% at the prior quarter-end, with 6% required to be considered well capitalized. The lower ratio at year-end was largely the result of Peoples repaying all of its outstanding junior subordinated debentures and redeeming the related trust preferred securities during the fourth quarter. This transaction had minimal impact on Peoples' tangible common equity. At December 31, 2012, the ratio of tangible common equity to tangible assets was 8.28%, and tangible book value per share was $14.52, versus 8.37% and $14.28, respectively, at September 30, 2012.
"Overall, we consider 2012 to be a very good year considering the strong results within our core businesses and significant improvement in shareholder value," summarized Sulerzyski. "In 2013, we plan to build upon the recent earnings momentum and improvement in asset quality. Key priorities will include balanced loan growth, preserving our revenue diversity, generating positive operating leverage and returning asset quality to pre-crisis levels. We will be successful due to disciplined execution of our strategies and commitment to serving the needs of our customers and local communities."
Peoples Bancorp Inc. is a diversified financial services holding company with $1.9 billion in total assets, 47 locations and 43 ATMs in Ohio, West Virginia and Kentucky. Peoples makes available a complete line of banking, investment, insurance and trust solutions through its subsidiaries - Peoples Bank, National Association and Peoples Insurance Agency, LLC. Peoples' common shares are traded on the NASDAQ Global Select Market® under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of U.S. publicly-traded companies. Learn more about Peoples at www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss fourth quarter and full year 2012 results of operations today at 11:00 a.m., Eastern Standard Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (800) 860-2442. A simultaneous Webcast of the conference call audio will be available online via the “Investor Relations” section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the “Investor Relations” section for one year.
Use of Non-GAAP Financial Measures
This news release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations and enhance comparability
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of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this news release:
◦ | Tangible equity and tangible common equity measures are non-GAAP since they exclude the impact of intangible assets acquired through acquisitions on both total stockholders’ equity and total assets and the related amortization from earnings. |
◦ | Pre-provision net revenue is defined as net interest income plus non-interest income minus non-interest expense. This measure is non-GAAP since it excludes provision for loan losses and all gains and/or losses included in earnings. |
A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included at the end of this news release under the caption of "Non-GAAP Financial Measures".
Safe Harbor Statement:
Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.
These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: (1) deterioration in the credit quality of Peoples' loan portfolio, which may adversely impact the provision for loan losses; (2) competitive pressures among financial institutions or from non-financial institutions may increase significantly, including product and pricing pressures and Peoples' ability to attract, develop and retain qualified professionals; (3) changes in the interest rate environment due to economic conditions and/or the fiscal policies of the U.S. government and Federal Reserve Board, which may adversely impact interest margins; (4) the success, impact, and timing of Peoples' business strategies, including the integration of recently completed acquisitions, expansion of consumer lending activity and rebranding efforts; (5) adverse changes in economic conditions and/or activity, including impacts from the implementation of the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012, as well as the continuing economic uncertainty in the U.S., the European Union, and other areas, which could decrease sales volumes and increase loan delinquencies and defaults; (6) changes in prepayment speeds, loan originations and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (7) legislative or regulatory changes or actions, including in particular the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated and to be promulgated thereunder, which may subject Peoples, its subsidiaries or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses; (8) changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations; (9) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples' investment portfolio and interest rate sensitivity of Peoples' consolidated balance sheet; (10) Peoples' ability to receive dividends from its subsidiaries; (11) Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; (12) the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity; (13) the costs and effects of regulatory and legal developments, including the outcome of potential regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; (14) Peoples' ability to secure confidential information through the use of computer systems and telecommunications networks, including those of our third-party vendors and other service providers, may prove inadequate, which could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; (15) the overall adequacy of our risk management program; and (16) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosures under the heading “ITEM 1A. RISK FACTORS” of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2011.
Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated
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events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website.
As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its December 31, 2012 consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.
PER COMMON SHARE DATA AND SELECTED RATIOS
Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
PER COMMON SHARE: | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.36 | $ | 0.45 | $ | 0.33 | $ | 1.92 | $ | 1.07 | |||||||||
Diluted | 0.36 | 0.45 | 0.33 | 1.92 | 1.07 | ||||||||||||||
Cash dividends declared per share | 0.12 | 0.11 | 0.10 | 0.45 | 0.30 | ||||||||||||||
Book value per share | 21.02 | 20.77 | 19.67 | 21.02 | 19.67 | ||||||||||||||
Tangible book value per share (a) | 14.52 | 14.28 | 13.53 | 14.52 | 13.53 | ||||||||||||||
Closing stock price at end of period | $ | 20.43 | $ | 22.89 | $ | 14.81 | $ | 20.43 | $ | 14.81 | |||||||||
SELECTED RATIOS: | |||||||||||||||||||
Return on average equity (b) | 6.99 | % | 8.86 | % | 6.79 | % | 9.52 | % | 5.72 | % | |||||||||
Return on average common equity (b) | 6.99 | % | 8.86 | % | 6.69 | % | 9.52 | % | 5.61 | % | |||||||||
Return on average assets (b) | 0.82 | % | 1.04 | % | 0.84 | % | 1.11 | % | 0.69 | % | |||||||||
Efficiency ratio (c) | 72.99 | % | 70.06 | % | 73.53 | % | 69.55 | % | 68.98 | % | |||||||||
Pre-provision net revenue to average assets (b)(d) | 1.23 | % | 1.34 | % | 1.21 | % | 1.41 | % | 1.41 | % | |||||||||
Net interest margin (b)(e) | 3.42 | % | 3.30 | % | 3.49 | % | 3.39 | % | 3.43 | % | |||||||||
Dividend payout ratio (f) | 33.17 | % | 24.36 | % | 30.32 | % | 23.58 | % | 28.35 | % | |||||||||
(a) | This amount represents a non-GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(b) | Ratios are presented on an annualized basis. |
(c) | Non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (less securities and asset disposal gains/losses). |
(d) | This amount represents a non-GAAP financial measure since it excludes the recovery of or provision for loan losses and net gains or losses on security transactions, debt extinguishment, loans held-for-sale and other real estate owned, and other assets. This measure is a key metric used by federal bank regulatory agencies in their evaluation of capital adequacy for financial institutions. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(e) | Information presented on a fully tax-equivalent basis. |
(f) | Dividends declared on common shares as a percentage of net income available to common shareholders. |
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CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
(in $000’s) | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
Interest income | $ | 17,575 | $ | 16,942 | $ | 18,475 | $ | 69,470 | $ | 75,133 | |||||||||
Interest expense | 3,465 | 3,621 | 4,686 | 14,995 | 21,154 | ||||||||||||||
Net interest income | 14,110 | 13,321 | 13,789 | 54,475 | 53,979 | ||||||||||||||
(Recovery of) provision for loan losses | (503 | ) | (956 | ) | (473 | ) | (4,716 | ) | 7,998 | ||||||||||
Net interest income after (recovery of) provision for loan losses | 14,613 | 14,277 | 14,262 | 59,191 | 45,981 | ||||||||||||||
Net gain on securities transactions | 273 | 112 | — | 3,548 | 473 | ||||||||||||||
Loss on debt extinguishment | (1,033 | ) | — | — | (4,144 | ) | — | ||||||||||||
Net gain (loss) on loans held-for-sale and other real estate owned | 58 | — | (869 | ) | 66 | (927 | ) | ||||||||||||
Net (loss) gain on other assets | (85 | ) | (161 | ) | 60 | (248 | ) | 11 | |||||||||||
Non-interest income: | |||||||||||||||||||
Insurance income | 2,088 | 2,367 | 1,944 | 9,844 | 9,265 | ||||||||||||||
Deposit account service charges | 2,237 | 2,261 | 2,509 | 8,965 | 9,765 | ||||||||||||||
Trust and investment income | 1,619 | 1,565 | 1,429 | 6,129 | 5,548 | ||||||||||||||
Electronic banking income | 1,519 | 1,484 | 1,324 | 5,955 | 5,142 | ||||||||||||||
Mortgage banking income | 1,008 | 638 | 657 | 2,877 | 1,687 | ||||||||||||||
Other non-interest income | 348 | 257 | 425 | 1,201 | 1,537 | ||||||||||||||
Total non-interest income | 8,819 | 8,572 | 8,288 | 34,971 | 32,944 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits costs | 8,715 | 8,051 | 9,345 | 33,426 | 33,626 | ||||||||||||||
Net occupancy and equipment | 1,736 | 1,423 | 1,459 | 6,094 | 5,885 | ||||||||||||||
Marketing expense | 1,192 | 534 | 660 | 2,682 | 1,765 | ||||||||||||||
Professional fees | 1,181 | 1,172 | 916 | 4,370 | 3,531 | ||||||||||||||
Electronic banking expense | 891 | 887 | 676 | 3,342 | 2,692 | ||||||||||||||
Data processing and software | 537 | 470 | 487 | 1,979 | 1,893 | ||||||||||||||
Communication expense | 355 | 294 | 308 | 1,285 | 1,223 | ||||||||||||||
Foreclosed real estate and other loan expenses | 262 | 263 | 388 | 1,001 | 1,213 | ||||||||||||||
Franchise taxes | 245 | 415 | 377 | 1,486 | 1,505 | ||||||||||||||
FDIC insurance | 213 | 257 | 315 | 1,002 | 1,867 | ||||||||||||||
Amortization of intangible assets | 159 | 134 | 131 | 509 | 586 | ||||||||||||||
Other non-interest expense | 1,620 | 1,766 | 1,502 | 6,298 | 5,545 | ||||||||||||||
Total non-interest expense | 17,106 | 15,666 | 16,564 | 63,474 | 61,331 | ||||||||||||||
Income before income taxes | 5,539 | 7,134 | 5,177 | 29,910 | 17,151 | ||||||||||||||
Income tax expense | 1,665 | 2,310 | 1,333 | 9,525 | 4,596 | ||||||||||||||
Net income | $ | 3,874 | $ | 4,824 | $ | 3,844 | $ | 20,385 | $ | 12,555 | |||||||||
Preferred dividends | — | — | 345 | — | 1,343 | ||||||||||||||
Net income available to common shareholders | $ | 3,874 | $ | 4,824 | $ | 3,499 | $ | 20,385 | $ | 11,212 | |||||||||
PER COMMON SHARE DATA: | |||||||||||||||||||
Earnings per share – Basic | $ | 0.36 | $ | 0.45 | $ | 0.33 | $ | 1.92 | $ | 1.07 | |||||||||
Earnings per share – Diluted | $ | 0.36 | $ | 0.45 | $ | 0.33 | $ | 1.92 | $ | 1.07 | |||||||||
Cash dividends declared per share | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.45 | $ | 0.30 | |||||||||
Weighted-average shares outstanding – Basic | 10,542,810 | 10,530,800 | 10,494,210 | 10,527,885 | 10,482,318 | ||||||||||||||
Weighted-average shares outstanding – Diluted | 10,542,810 | 10,530,876 | 10,494,210 | 10,527,912 | 10,482,318 | ||||||||||||||
Actual shares outstanding (end of period) | 10,547,960 | 10,534,445 | 10,507,124 | 10,547,960 | 10,507,124 | ||||||||||||||
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CONSOLIDATED BALANCE SHEETS
December 31, | |||||||
(in $000’s) | 2012 | 2011 | |||||
Assets | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 47,256 | $ | 32,346 | |||
Interest-bearing deposits in other banks | 15,286 | 6,604 | |||||
Total cash and cash equivalents | 62,542 | 38,950 | |||||
Available-for-sale investment securities, at fair value (amortized cost of | |||||||
$628,584 at December 31, 2012 and $617,128 at December 31, 2011) | 639,185 | 628,571 | |||||
Held-to-maturity investment securities, at amortized cost (fair value of | |||||||
$47,124 at December 31, 2012 and $16,705 at December 31, 2011) | 45,275 | 16,301 | |||||
Other investment securities, at cost | 24,625 | 24,356 | |||||
Total investment securities | 709,085 | 669,228 | |||||
Loans, net of deferred fees and costs | 985,172 | 938,506 | |||||
Allowance for loan losses | (17,811 | ) | (23,717 | ) | |||
Net loans | 967,361 | 914,789 | |||||
Loans held-for-sale | 6,546 | 3,271 | |||||
Bank premises and equipment, net of accumulated depreciation | 27,013 | 23,905 | |||||
Bank owned life insurance | 51,229 | 49,384 | |||||
Goodwill | 64,881 | 62,520 | |||||
Other intangible assets | 3,644 | 1,955 | |||||
Other assets | 25,749 | 30,159 | |||||
Total assets | $ | 1,918,050 | $ | 1,794,161 | |||
Liabilities | |||||||
Deposits: | |||||||
Non-interest-bearing deposits | $ | 317,071 | $ | 239,837 | |||
Interest-bearing deposits | 1,175,232 | 1,111,243 | |||||
Total deposits | 1,492,303 | 1,351,080 | |||||
Short-term borrowings | 47,769 | 51,643 | |||||
Long-term borrowings | 128,823 | 142,312 | |||||
Junior subordinated notes held by subsidiary trust | — | 22,600 | |||||
Accrued expenses and other liabilities | 27,427 | 19,869 | |||||
Total liabilities | 1,696,322 | 1,587,504 | |||||
Stockholders' Equity | |||||||
Preferred stock, no par value (50,000 shares authorized, no shares issued | |||||||
at December 31, 2012 and December 31, 2011) | — | — | |||||
Common stock, no par value (24,000,000 shares authorized, 11,155,648 shares | |||||||
issued at December 31, 2012 and 11,122,247 shares issued at | |||||||
December 31, 2011), including shares in treasury | 167,039 | 166,969 | |||||
Retained earnings | 69,158 | 53,580 | |||||
Accumulated comprehensive income, net of deferred income taxes | 654 | 1,412 | |||||
Treasury stock, at cost (607,688 shares at December 31, 2012 and | |||||||
615,123 shares at December 31, 2011) | (15,123 | ) | (15,304 | ) | |||
Total stockholders' equity | 221,728 | 206,657 | |||||
Total liabilities and stockholders' equity | $ | 1,918,050 | $ | 1,794,161 | |||
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SELECTED FINANCIAL INFORMATION
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(in $000’s, end of period) | 2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||
Loan Portfolio | |||||||||||||||
Commercial real estate | $ | 378,073 | $ | 379,561 | $ | 394,323 | $ | 394,034 | $ | 410,352 | |||||
Commercial and industrial | 180,131 | 172,068 | 161,893 | 150,431 | 140,857 | ||||||||||
Real estate construction | 34,265 | 50,804 | 43,775 | 43,510 | 30,577 | ||||||||||
Residential real estate | 233,841 | 233,501 | 212,813 | 218,745 | 219,619 | ||||||||||
Home equity lines of credit | 51,053 | 51,137 | 48,414 | 48,067 | 47,790 | ||||||||||
Consumer | 101,246 | 100,116 | 92,334 | 86,965 | 87,531 | ||||||||||
Deposit account overdrafts | 6,563 | 1,580 | 1,726 | 2,351 | 1,780 | ||||||||||
Total loans | $ | 985,172 | $ | 988,767 | $ | 955,278 | $ | 944,103 | $ | 938,506 | |||||
Deposit Balances | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Retail certificates of deposit | $ | 392,313 | $ | 413,837 | $ | 411,401 | $ | 392,503 | $ | 411,247 | |||||
Money market deposit accounts | 288,404 | 251,735 | 246,657 | 252,395 | 264,873 | ||||||||||
Governmental deposit accounts | 130,630 | 157,802 | 158,832 | 165,310 | 126,453 | ||||||||||
Savings accounts | 183,499 | 172,715 | 161,664 | 155,097 | 138,383 | ||||||||||
Interest-bearing demand accounts | 124,787 | 112,854 | 112,476 | 110,731 | 106,233 | ||||||||||
Total retail interest-bearing deposits | 1,119,633 | 1,108,943 | 1,091,030 | 1,076,036 | 1,047,189 | ||||||||||
Brokered certificates of deposits | 55,599 | 55,168 | 54,639 | 54,069 | 64,054 | ||||||||||
Total interest-bearing deposits | 1,175,232 | 1,164,111 | 1,145,669 | 1,130,105 | 1,111,243 | ||||||||||
Non-interest-bearing deposits | 317,071 | 288,376 | 272,627 | 268,444 | 239,837 | ||||||||||
Total deposits | $ | 1,492,303 | $ | 1,452,487 | $ | 1,418,296 | $ | 1,398,549 | $ | 1,351,080 | |||||
Asset Quality | |||||||||||||||
Nonperforming assets: | |||||||||||||||
Loans 90+ days past due and accruing | $ | 185 | $ | 27 | $ | 51 | $ | — | — | ||||||
Nonaccrual loans | 13,638 | 15,481 | 16,567 | 20,492 | 30,022 | ||||||||||
Total nonperforming loans | 13,823 | 15,508 | 16,618 | 20,492 | 30,022 | ||||||||||
Other real estate owned | 836 | 1,173 | 1,140 | 869 | 2,194 | ||||||||||
Total nonperforming assets | $ | 14,659 | $ | 16,681 | $ | 17,758 | $ | 21,361 | $ | 32,216 | |||||
Allowance for loan losses as a percent of | |||||||||||||||
nonperforming loans | 128.86 | % | 119.98 | % | 119.90 | % | 103.69 | % | 79.00 | % | |||||
Nonperforming loans as a percent of total loans | 1.39 | % | 1.55 | % | 1.73 | % | 2.16 | % | 3.19 | % | |||||
Nonperforming assets as a percent of total assets | 0.76 | % | 0.89 | % | 0.97 | % | 1.18 | % | 1.80 | % | |||||
Nonperforming assets as a percent of total loans | |||||||||||||||
and other real estate owned | 1.48 | % | 1.66 | % | 1.85 | % | 2.25 | % | 3.41 | % | |||||
Allowance for loan losses as a percent of total loans | 1.81 | % | 1.88 | % | 2.09 | % | 2.25 | % | 2.53 | % | |||||
Capital Information(a) | |||||||||||||||
Tier 1 common ratio | 14.06 | % | 13.86 | % | 13.92 | % | 13.82 | % | 12.82 | % | |||||
Tier 1 risk-based capital ratio | 14.06 | % | 15.85 | % | 15.93 | % | 15.86 | % | 14.86 | % | |||||
Total risk-based capital ratio (Tier 1 and Tier 2) | 15.43 | % | 17.16 | % | 17.27 | % | 17.20 | % | 16.20 | % | |||||
Leverage ratio | 8.83 | % | 10.13 | % | 10.18 | % | 10.05 | % | 9.45 | % | |||||
Tier 1 common capital | $ | 160,604 | $ | 157,520 | $ | 156,565 | $ | 153,180 | $ | 142,521 | |||||
Tier 1 capital | 160,604 | 180,147 | 179,183 | 175,789 | 165,121 | ||||||||||
Total capital (Tier 1 and Tier 2) | 176,224 | 195,083 | 194,307 | 190,694 | 180,053 | ||||||||||
Total risk-weighted assets | $ | 1,141,938 | $ | 1,136,532 | $ | 1,124,982 | $ | 1,108,633 | $ | 1,111,443 | |||||
Tangible equity to tangible assets (b) | 8.28 | % | 8.37 | % | 8.45 | % | 8.28 | % | 8.22 | % | |||||
Tangible common equity to tangible assets (b) | 8.28 | % | 8.37 | % | 8.45 | % | 8.28 | % | 8.22 | % | |||||
(a) December 31, 2012 data based on preliminary analysis and subject to revision.
(b) These ratios represent non-GAAP financial measures since they exclude the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of these ratios is included at the end of this news release.
8
PROVISION FOR LOAN LOSSES INFORMATION
Three Months Ended | Year Ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
(in $000’s) | 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
(Recovery of) Provision for Loan Losses | |||||||||||||||||||
Provision for checking account overdrafts | $ | 82 | $ | 144 | $ | 147 | $ | 294 | $ | 418 | |||||||||
(Recovery of) provision for other loan losses | (585 | ) | (1,100 | ) | (620 | ) | (5,010 | ) | 7,580 | ||||||||||
Total (recovery of) provision for loan losses | $ | (503 | ) | $ | (956 | ) | $ | (473 | ) | $ | (4,716 | ) | $ | 7,998 | |||||
Net Charge-Offs | |||||||||||||||||||
Gross charge-offs | $ | 2,570 | $ | 858 | $ | 2,352 | $ | 7,511 | $ | 15,844 | |||||||||
Recoveries | 2,277 | 496 | 1,329 | 6,321 | 4,797 | ||||||||||||||
Net charge-offs | $ | 293 | $ | 362 | $ | 1,023 | $ | 1,190 | $ | 11,047 | |||||||||
Net Charge-Offs (Recoveries) by Type | |||||||||||||||||||
Commercial real estate | $ | 173 | $ | 139 | $ | 518 | $ | 747 | $ | 8,780 | |||||||||
Commercial and industrial | (66 | ) | (143 | ) | (72 | ) | (324 | ) | 304 | ||||||||||
Residential real estate | 36 | 253 | 302 | 318 | 957 | ||||||||||||||
Real estate, construction | — | — | — | — | — | ||||||||||||||
Home equity lines of credit | (9 | ) | 8 | 7 | 62 | 315 | |||||||||||||
Consumer | 42 | (24 | ) | 126 | 11 | 252 | |||||||||||||
Deposit account overdrafts | 117 | 129 | 142 | 376 | 439 | ||||||||||||||
Total net charge-offs | $ | 293 | $ | 362 | $ | 1,023 | $ | 1,190 | $ | 11,047 | |||||||||
Net charge-offs as a percent of loans (annualized) | 0.12 | % | 0.15 | % | 0.43 | % | 0.12 | % | 1.16 | % | |||||||||
SUPPLEMENTAL INFORMATION
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
(in $000’s, end of period) | 2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||||||
Trust assets under management | $ | 888,134 | $ | 874,293 | $ | 847,962 | $ | 853,444 | $ | 821,659 | |||||||||
Brokerage assets under management | 404,320 | 398,875 | 309,852 | 284,453 | 262,196 | ||||||||||||||
Mortgage loans serviced for others | $ | 330,721 | $ | 307,052 | $ | 296,025 | $ | 281,015 | $ | 275,715 | |||||||||
Employees (full-time equivalent) | 494 | 501 | 494 | 499 | 513 | ||||||||||||||
9
CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME
Three Months Ended | ||||||||||||||||||||||||||
December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Short-term investments | $ | 13,014 | $ | 7 | 0.21 | % | $ | 10,150 | $ | 5 | 0.20 | % | $ | 8,623 | $ | 4 | 0.22 | % | ||||||||
Investment securities (a)(b) | 689,895 | 5,289 | 3.07 | % | 691,304 | 5,270 | 3.05 | % | 676,550 | 6,518 | 3.85 | % | ||||||||||||||
Gross loans (a) | 995,766 | 12,568 | 5.03 | % | 966,758 | 11,942 | 4.92 | % | 948,598 | 12,225 | 5.12 | % | ||||||||||||||
Allowance for loan losses | (19,865 | ) | (19,981 | ) | (25,695 | ) | ||||||||||||||||||||
Total earning assets | 1,678,810 | 17,864 | 4.24 | % | 1,648,231 | 17,217 | 4.17 | % | 1,608,076 | 18,747 | 4.64 | % | ||||||||||||||
Intangible assets | 68,422 | 65,912 | 64,451 | |||||||||||||||||||||||
Other assets | 140,092 | 133,448 | 137,664 | |||||||||||||||||||||||
Total assets | $ | 1,887,324 | $ | 1,847,591 | $ | 1,810,191 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 178,200 | $ | 23 | 0.05 | % | $ | 164,771 | $ | 24 | 0.06 | % | $ | 135,489 | $ | 20 | 0.06 | % | ||||||||
Government deposit accounts | 145,240 | 201 | 0.55 | % | 162,773 | 248 | 0.61 | % | 139,570 | 241 | 0.69 | % | ||||||||||||||
Interest-bearing demand accounts | 118,039 | 23 | 0.08 | % | 114,030 | 22 | 0.08 | % | 103,820 | 28 | 0.11 | % | ||||||||||||||
Money market deposit accounts | 265,181 | 91 | 0.14 | % | 244,857 | 96 | 0.16 | % | 261,024 | 133 | 0.20 | % | ||||||||||||||
Brokered certificates of deposits | 55,387 | 491 | 3.53 | % | 55,158 | 491 | 3.54 | % | 64,396 | 549 | 3.38 | % | ||||||||||||||
Retail certificates of deposit | 404,356 | 1,223 | 1.20 | % | 407,254 | 1,290 | 1.26 | % | 415,887 | 1,968 | 1.88 | % | ||||||||||||||
Total interest-bearing deposits | 1,166,403 | 2,052 | 0.70 | % | 1,148,843 | 2,171 | 0.75 | % | 1,120,186 | 2,939 | 1.04 | % | ||||||||||||||
Short-term borrowings | 45,200 | 17 | 0.15 | % | 47,772 | 19 | 0.16 | % | 50,674 | 18 | 0.14 | % | ||||||||||||||
Long-term borrowings | 128,822 | 1,396 | 4.16 | % | 128,970 | 1,431 | 4.37 | % | 165,939 | 1,729 | 4.10 | % | ||||||||||||||
Total borrowed funds | 174,022 | 1,413 | 3.20 | % | 176,742 | 1,450 | 3.23 | % | 216,613 | 1,747 | 3.17 | % | ||||||||||||||
Total interest-bearing liabilities | 1,340,425 | 3,465 | 1.03 | % | 1,325,585 | 3,621 | 1.08 | % | 1,336,799 | 4,686 | 1.39 | % | ||||||||||||||
Non-interest-bearing deposits | 298,210 | 280,223 | 236,405 | |||||||||||||||||||||||
Other liabilities | 28,120 | 25,066 | 12,248 | |||||||||||||||||||||||
Total liabilities | 1,666,755 | 1,630,874 | 1,585,452 | |||||||||||||||||||||||
Preferred equity | — | — | 17,104 | |||||||||||||||||||||||
Common equity | 220,569 | 216,717 | 207,635 | |||||||||||||||||||||||
Stockholders’ equity | 220,569 | 216,717 | 224,739 | |||||||||||||||||||||||
Total liabilities and equity | $ | 1,887,324 | $ | 1,847,591 | $ | 1,810,191 | ||||||||||||||||||||
Net interest income/spread (a) | $ | 14,399 | 3.21 | % | $ | 13,596 | 3.09 | % | $ | 14,061 | 3.25 | % | ||||||||||||||
Net interest margin (a) | 3.42 | % | 3.30 | % | 3.49 | % | ||||||||||||||||||||
(a) Information presented on a fully tax-equivalent basis. | ||||||||||||||||||||||||||
(b) Average balances are based on carrying value. | ||||||||||||||||||||||||||
10
Year Ended | |||||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||
Assets | |||||||||||||||||
Short-term investments | $ | 9,705 | $ | 20 | 0.21 | % | $ | 11,522 | $ | 24 | 0.21 | % | |||||
Investment securities (a)(b) | 685,439 | 22,167 | 3.23 | % | 669,765 | 26,717 | 3.99 | % | |||||||||
Gross loans (a) | 967,166 | 48,370 | 5.00 | % | 950,951 | 49,525 | 5.21 | % | |||||||||
Allowance for loan losses | (21,473 | ) | (27,259 | ) | |||||||||||||
Total earning assets | 1,640,837 | 70,557 | 4.30 | % | 1,604,979 | 76,266 | 4.75 | % | |||||||||
Intangible assets | 65,881 | 64,621 | |||||||||||||||
Other assets | 134,571 | 141,479 | |||||||||||||||
Total assets | $ | 1,841,289 | $ | 1,811,079 | |||||||||||||
Liabilities and Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Savings accounts | $ | 162,055 | $ | 90 | 0.06 | % | $ | 132,365 | $ | 166 | 0.13 | % | |||||
Government deposit accounts | 151,877 | 937 | 0.62 | % | 147,688 | 1,531 | 1.04 | % | |||||||||
Interest-bearing demand accounts | 113,022 | 117 | 0.10 | % | 101,094 | 161 | 0.16 | % | |||||||||
Money market deposit accounts | 255,345 | 423 | 0.17 | % | 262,374 | 760 | 0.29 | % | |||||||||
Brokered certificates of deposits | 56,451 | 1,996 | 3.54 | % | 70,417 | 2,308 | 3.28 | % | |||||||||
Retail certificates of deposit | 404,872 | 5,496 | 1.36 | % | 419,226 | 9,004 | 2.15 | % | |||||||||
Total interest-bearing deposits | 1,143,622 | 9,059 | 0.79 | % | 1,133,164 | 13,930 | 1.23 | % | |||||||||
Short-term borrowings | 50,641 | 74 | 0.14 | % | 47,114 | 103 | 0.22 | % | |||||||||
Long-term borrowings | 134,978 | 5,862 | 4.27 | % | 171,776 | 7,121 | 4.11 | % | |||||||||
Total borrowed funds | 185,619 | 5,936 | 3.17 | % | 218,890 | 7,224 | 3.27 | % | |||||||||
Total interest-bearing liabilities | 1,329,241 | 14,995 | 1.13 | % | 1,352,054 | 21,154 | 1.56 | % | |||||||||
Non-interest-bearing deposits | 273,893 | 228,093 | |||||||||||||||
Other liabilities | 24,037 | 11,435 | |||||||||||||||
Total liabilities | 1,627,171 | 1,591,582 | |||||||||||||||
Preferred equity | — | 19,492 | |||||||||||||||
Common equity | 214,118 | 200,005 | |||||||||||||||
Stockholders’ equity | 214,118 | 219,497 | |||||||||||||||
Total liabilities and equity | $ | 1,841,289 | $ | 1,811,079 | |||||||||||||
Net interest income/spread (a) | $ | 55,562 | 3.17 | % | $ | 55,112 | 3.19 | % | |||||||||
Net interest margin (a) | 3.39 | % | 3.43 | % | |||||||||||||
(a) Information presented on a fully tax-equivalent basis. | |||||||||||||||||
(b) Average balances are based on carrying value. | |||||||||||||||||
11
NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements:
At or For the Three Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
(in $000’s) | 2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||||||
Tangible Equity: | |||||||||||||||||||
Total stockholders' equity, as reported | $ | 221,728 | $ | 218,835 | $ | 214,623 | $ | 208,666 | $ | 206,657 | |||||||||
Less: goodwill and other intangible assets | 68,525 | 68,422 | 65,383 | 64,429 | 64,475 | ||||||||||||||
Tangible equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Tangible Common Equity: | |||||||||||||||||||
Tangible equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Less: preferred stockholders' equity | — | — | — | — | — | ||||||||||||||
Tangible common equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Tangible Assets: | |||||||||||||||||||
Total assets, as reported | $ | 1,918,050 | $ | 1,866,510 | $ | 1,831,359 | $ | 1,805,923 | $ | 1,794,161 | |||||||||
Less: goodwill and other intangible assets | 68,525 | 68,422 | 65,383 | 64,429 | 64,475 | ||||||||||||||
Tangible assets | $ | 1,849,525 | $ | 1,798,088 | $ | 1,765,976 | $ | 1,741,494 | $ | 1,729,686 | |||||||||
Tangible Book Value per Common Share: | |||||||||||||||||||
Tangible common equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Common shares outstanding | 10,547,960 | 10,534,445 | 10,526,954 | 10,521,548 | 10,507,124 | ||||||||||||||
Tangible book value per common share | $ | 14.52 | $ | 14.28 | $ | 14.18 | $ | 13.71 | $ | 13.53 | |||||||||
Tangible Equity to Tangible Assets Ratio: | |||||||||||||||||||
Tangible equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Tangible assets | $ | 1,849,525 | $ | 1,798,088 | $ | 1,765,976 | $ | 1,741,494 | $ | 1,729,686 | |||||||||
Tangible equity to tangible assets | 8.28 | % | 8.37 | % | 8.45 | % | 8.28 | % | 8.22 | % | |||||||||
Tangible Common Equity to Tangible Assets Ratio: | |||||||||||||||||||
Tangible common equity | $ | 153,203 | $ | 150,413 | $ | 149,240 | $ | 144,237 | $ | 142,182 | |||||||||
Tangible assets | $ | 1,849,525 | $ | 1,798,088 | $ | 1,765,976 | $ | 1,741,494 | $ | 1,729,686 | |||||||||
Tangible common equity to tangible assets | 8.28 | % | 8.37 | % | 8.45 | % | 8.28 | % | 8.22 | % | |||||||||
12
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||||||||
(in $000’s) | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Pre-Provision Net Revenue: | ||||||||||||||||||||
Income before income taxes | $ | 5,539 | $ | 7,134 | $ | 5,177 | $ | 29,910 | $ | 17,151 | ||||||||||
Add: provision for loan losses | — | — | — | — | 7,998 | |||||||||||||||
Add: loss on debt extinguishment | 1,033 | — | — | 4,144 | — | |||||||||||||||
Add: loss on loans held-for-sale and OREO | — | — | 869 | — | 1,395 | |||||||||||||||
Add: loss on other assets | 85 | 174 | — | 261 | 31 | |||||||||||||||
Less: recovery of loan losses | 503 | 956 | 473 | 4,716 | — | |||||||||||||||
Less: gain on loans held-for-sale and OREO | 58 | — | — | 66 | 469 | |||||||||||||||
Less: net gain on securities transactions | 273 | 112 | — | 3,548 | 473 | |||||||||||||||
Less: gain on other assets | — | 13 | 60 | 13 | 42 | |||||||||||||||
Pre-provision net revenue | $ | 5,823 | $ | 6,227 | $ | 5,513 | $ | 25,972 | $ | 25,591 | ||||||||||
Pre-provision net revenue | $ | 5,823 | $ | 6,227 | $ | 5,513 | $ | 25,972 | 13,928 | $ | 25,591 | |||||||||
Total average assets | 1,887,324 | 1,847,591 | 1,810,191 | 1,841,289 | 1,811,079 | |||||||||||||||
Pre-provision net revenue to total average assets (annualized) | 1.23 | % | 1.34 | % | 1.21 | % | 1.41 | % | 1.41 | % | ||||||||||
END OF RELEASE
13