CHICAGO, April 29, 2014 /PRNewswire/ -- Taylor
Capital Group, Inc. (the "Company") (NASDAQ: TAYC), the parent
company of Cole Taylor Bank (the
"Bank"), today reported results for the first quarter of 2014.
Net income for the quarter was $9.9
million, compared to $15.0
million for the fourth quarter of 2013. Net income
applicable to common stockholders for the quarter was $9.9 million, or $0.32 per diluted share, compared to $10.1 million, or $0.33 per diluted share, for the fourth quarter
of 2013. The results for the first quarter of 2014 and the
fourth quarter of 2013 also included $0.7
million and $4.5 million,
respectively, of pre-tax expense relating to the previously
announced pending merger with MB Financial, Inc. ("MB Financial")
and other strategic initiatives and there were no preferred
dividends recorded in the first quarter of 2014 as compared to
$4.9 million in the fourth quarter of
2013. The following table compares selected additional
financial information for the periods indicated:
(dollars in
millions)
|
1Q14
|
|
4Q13
|
|
Change
from
4Q13
to
1Q14
|
|
1Q13
|
|
Change
from
1Q13
to
1Q14
|
Total commercial
loans (period-end)
|
$3,370.4
|
|
$3,359.4
|
|
0.3%
|
|
$2,817.4
|
|
19.6 %
|
Average total
deposits
|
$3,837.9
|
|
$3,867.4
|
|
(0.8)%
|
|
$3,758.7
|
|
2.1 %
|
Net interest
income
|
$43.9
|
|
$45.2
|
|
(2.9) %
|
|
$40.7
|
|
7.9 %
|
Net interest
margin
|
3.49 %
|
|
3.41%
|
|
8 bps
|
|
3.20 %
|
|
29 bps
|
Mortgage banking
revenue
|
$23.1
|
|
$27.2
|
|
(15.1) %
|
|
$32.0
|
|
(27.8) %
|
Loan loss
provision
|
$2.6
|
|
$1.1
|
|
136.4 %
|
|
$0.3
|
|
766.7 %
|
Net income
|
$9.9
|
|
$15.0
|
|
(34.0) %
|
|
$17.3
|
|
(42.8) %
|
|
|
|
|
|
|
|
|
|
|
In commenting on the results, Mark A.
Hoppe, President and Chief Executive Officer of the Company
said, "We continue to benefit from our long-standing
diversification strategy. Our national asset based lending
and equipment financing businesses grew significantly with asset
based lending having their most profitable quarter ever. That
growth helped offset the seasonally light demand in the rest of our
commercial loan portfolio. Our net interest margin was 3.49%
for the quarter despite the highly competitive loan pricing in our
markets. We also remain focused and disciplined on credit,
and are pleased to report our nonaccrual loans and the ratio of
nonperforming assets to total assets are both down from year-end
2013.
In another positive development in the first quarter, Cole
Taylor Mortgage completed the transfer of loans to our in-house
servicing platform, which provides more flexibility and control of
our customers' experience than using a third party servicer," Hoppe
continued. "While our mortgage origination volume of
$1.1 billion for the quarter was down
as compared to the previous quarter, we believe this amount
represents an increase in U.S. market share in a difficult
residential mortgage environment. We expanded our
higher-margin retail origination channel, opening five new retail
lending offices this quarter and now have 46 offices in 20
states.
In late February, stockholders of both Taylor Capital and MB
Financial overwhelmingly approved the Agreement and Plan of Merger
between our two organizations," Hoppe added. "Teams of
colleagues from both companies are focused on the transaction, and
they are making substantial progress in a collaborative
manner. Of course, most of our colleagues remain dedicated to
our top priority: providing our clients the same high quality
service to which they've grown accustomed. I am excited for
the future, knowing that we are extremely well positioned to
benefit from the numerous opportunities ahead for our customers,
employees and shareholders."
FIRST QUARTER 2014 HIGHLIGHTS - COMPARISON TO FOURTH QUARTER
2013
- Total commercial loans grew $11.0
million, or 0.3%, from December 31,
2013
- Net interest margin was 3.49% for the first quarter of 2014, up
8 basis points from the fourth quarter of 2013
- Mortgage banking revenue was $23.1
million for the first quarter of 2014, as compared to
$27.2 million for the fourth quarter
of 2013
- Mortgage origination volume was $1.05
billion for the first quarter of 2014, as compared to
$1.17 billion from the fourth quarter
of 2013
- As of March 31, 2014, the
Company's Tier I Risk Based Capital ratio was 11.67%, its Total
Risk Based Capital ratio was 12.93% and its Tier I Capital to
Average Assets leverage ratio was 9.73%
- Return on Average Common Equity was 10.44% for the first
quarter of 2014, as compared to 10.84% for the fourth quarter of
2013
- Return on Average Assets was 0.71% for the first quarter of
2014, as compared to 1.03% for the fourth quarter of 2013
First quarter 2014 credit quality indicators as compared to
the fourth quarter of 2013
- Nonperforming loans were $72.9
million and 2.00% of total loans at March 31, 2014, down 10.9% from $81.8 million and 2.24% of total loans at
December 31, 2013
- At March 31, 2014, commercial
criticized and classified loans(1) totaled $184.6 million, compared to $188.0 million at December
31, 2013
- Other real estate owned ("OREO") and repossessed assets were
$10.0 million at March 31, 2014, and $10.0
million at December 31,
2013
- The allowance for loan losses as a percent of nonperforming
loans was 113.6% at March 31, 2014,
compared to 100.0% at December 31,
2013
- Credit costs(2) were $2.8
million for the first quarter of 2014, compared to
$3.3 million for the fourth quarter
of 2013
FIRST QUARTER 2014 - COMPARISON TO FIRST QUARTER 2013
- Total commercial loans increased to $3.37 billion at March 31,
2014, up $553.0 million, or
19.6%, from March 31, 2013
- Core deposits grew to $2.74
billion at March 31, 2014, up
0.3% from March 31, 2013
- Mortgage origination volume was $1.05
billion for the first quarter of 2014, as compared to
$1.91 billion for the first quarter
of 2013
- Return on Average Common Equity was 10.44% for the first
quarter of 2014 as compared to 14.82% for the first quarter of
2013
FIRST QUARTER 2014 PERFORMANCE OVERVIEW
Results of Operations - Comparisons to Fourth Quarter
2013
Net income for the first quarter of 2014 was $9.9 million, compared to $15.0 million for the fourth quarter of 2013, a
decrease of 34.0%. Net income applicable to common
stockholders for the first quarter of 2014 was $9.9 million, compared to $10.1 million for the fourth quarter of 2013.
Income before income taxes was $15.8
million for the first quarter of 2014, compared to
$21.7 million for the fourth quarter
of 2013, a decrease of 27.2%. The decrease in income before
income taxes was primarily due to a $5.9
million decrease in gain on sales of investment securities
and a $4.1 million volume-related
decrease in mortgage banking revenue. Partially offsetting
these items was a reduction in occupancy of premises, furniture and
equipment expense due to the prior quarter including a one-time
$3.3 million early lease termination
cost related to the pending merger with MB Financial.
Pre-tax, pre-provision operating earnings(3) were
$18.5 million for the first quarter
of 2014, compared to $19.1 million
for the fourth quarter of 2013, a decrease of 3.1%, primarily due
to a volume-related decrease in the mortgage segment.
Revenue(4)
Revenue totaled $72.9 million for
the first quarter of 2014, compared to $79.0
million for the fourth quarter of 2013, a decrease of
7.7%.
Net interest income was $43.9
million for the first quarter of 2014, as compared to
$45.2 million for the fourth quarter
of 2013. The decrease in net interest income of $1.3 million was primarily the result of lower
interest income from investment securities due to a planned
reduction in the securities portfolio in the fourth quarter of
2013.
Noninterest income, excluding investment security gains and
losses, was $29.1 million for the
first quarter of 2014, compared to $33.7
million for the fourth quarter of 2013, a decrease of
13.6%. The change in noninterest income, as compared to the
fourth quarter of 2013, was primarily due to a $4.1 million decrease in mortgage banking revenue
due to both a decline of 10.0% in mortgage origination volume,
which led to a $2.7 million decrease
in origination income and a $1.5
million decrease in servicing revenue primarily due to a
reduction in the fair market value of the servicing asset. In
addition, other derivative income decreased $1.5 million due to a reduction in customer swap
activity. Partially offsetting these decreases was a
$685,000 increase in other
noninterest income associated with certain other investments.
Noninterest Expense
Noninterest expense, excluding nonperforming asset expense, was
$54.4 million for the first quarter
of 2014, compared to $59.8 million
for the fourth quarter of 2013, a decrease of $5.4 million, or 9.0%. The decrease was
primarily due to the fourth quarter of 2013 including $3.3 million of early lease termination expense,
and other costs - which are primarily legal fees - related to the
pending merger with MB Financial. In addition, salaries and
employee benefits decreased $1.4
million from the fourth quarter of 2013. The decrease
in salaries and employee benefits was due to a $3.1 million decrease in performance-based
incentive compensation primarily related to a decrease in
origination volume at Cole Taylor Mortgage and a $1.4 million decrease in salary costs as staffing
levels adjusted to the reduced origination volume. Partially
offsetting these decreases was a $3.0
million increase in employee benefits primarily due to
certain employment tax expenses that are typically higher in the
first quarter of each year.
Preferred Dividends
There were no preferred dividends or discounts in the first
quarter of 2014 as compared to $4.9
million in the fourth quarter of 2013. This decrease
was due to two reasons. First, as required by the Series A
Preferred stock and in connection with the repurchase and
redemption of the Series B Preferred stock, the $2.0 million quarterly dividend on the Series A
Preferred stock, which typically would have been recorded in the
first quarter of 2014, was instead declared and recorded in the
fourth quarter of 2013. In addition, the Company's Series B
Preferred stock was fully repaid in 2013 and has been
cancelled.
Results of Operations - Comparisons to First Quarter
2013
Net income for the first quarter of 2014 was $9.9 million, compared to $17.3 million for the first quarter of 2013, a
decrease of 42.8%. Net income applicable to common
stockholders for the first quarter of 2014 was $9.9 million, compared to $13.6 million for the first quarter of 2013.
Income before income taxes was $15.8
million for the first quarter of 2014, compared to
$28.3 million for the first quarter
of 2013, a decrease of 44.2%, primarily due to a $9.0 million volume-related decrease in mortgage
banking revenue.
Pre-tax, pre-provision operating earnings totaled $18.5 million for the first quarter of 2014,
compared to $29.2 million for the
first quarter of 2013, a decrease of 36.6%. The decrease was
also primarily due to lower mortgage banking revenue.
Revenue
Revenue totaled $72.9 million for
the first quarter of 2014, compared to $80.4
million for the first quarter of 2013, a decrease of
9.3%.
Net interest income was $43.9
million for the first quarter of 2014, as compared to
$40.7 million for the first quarter
of 2013, an increase of 7.9%. The increase in net interest
income was the result of the combination of a $2.0 million reduction in interest expense and a
$1.2 million increase in interest
income. Interest expense decreased due to lower rates paid on
deposit balances and the early retirement of the Company's 8%
subordinated notes in June 2013. The increase in interest
income was primarily due to growth in the commercial loan
portfolio.
Noninterest income, excluding investment security gains and
losses, was $29.1 million for the
first quarter of 2014, compared to $39.7
million for the first quarter of 2013, a decrease of
26.7%. The decrease was primarily due to a net $9.0 million decrease in mortgage banking
revenue. Mortgage loan origination income decreased
$15.1 million due to a reduction in
mortgage loan origination volume. Partially offsetting this
decrease was a $6.2 million increase
in net mortgage servicing income. Servicing income increased
due to the combination of retention of mortgage servicing rights
("MSRs") on loans originated by Cole Taylor Mortgage, purchases of
MSRs and an increase in the valuation of the MSR asset. Total
mortgage originations were $1.05
billion in the first quarter of 2014, as compared to
$1.91 billion in the first quarter of
2013. In addition, other derivative income decreased
$1.6 million due to a reduction in
customer swap activity.
Noninterest Expense
Noninterest expense, excluding nonperforming asset expense, was
$54.4 million for the first quarter
of 2014, compared to $51.2 million
for the first quarter of 2013, an increase of 6.2%. The
increase was due to a $1.1 million
increase in outside services primarily due to one-time costs
associated with transferring the bulk of Cole Taylor Mortgage's
loan servicing portfolio in-house and a $802,000 increase in computer processing costs
primarily related to the expansion of retail mortgage lending
offices from 26 offices at the end of the first quarter 2013 to 46
offices at the end of the first quarter 2014.
Credit Quality
Loan Portfolio Performance and Credit Quality
Total commercial criticized and classified loans were
$184.6 million at March 31, 2014, as compared to $188.0 million at December
31, 2013 and $138.5 million at
March 31, 2013. The
$46.1 million increase in commercial
criticized and classified loans from March
31, 2013 to March 31, 2014 was
primarily due to a $24.7 million net
increase in loans classified as substandard and a $20.6 million net increase in special mention
loans. The $24.7 million
increase in substandard loans was primarily due to migrations into
this category net of upgrades and payoffs of $15.1 million of commercial and industrial loans
and $7.8 million of commercial real
estate secured loans. The $20.6
million increase in special mention loans was primarily due
to migrations into this category net of payoffs and upgrades of
certain commercial and industrial loans. The decrease in
criticized and classified loans from year-end 2013 was largely
attributable to net payoffs of certain commercial real estate
portfolio loans previously classified as nonaccrual, partially
offset by the net migration of certain loans into the substandard
category.
Nonperforming loans were $72.9
million at March 31, 2014, as
compared to $81.8 million at
December 31, 2013 and $71.4 million at March
31, 2013. The decrease in the first quarter of 2014 of
$8.9 million was primarily due to
payoffs of loans previously classified as nonaccrual.
OREO and repossessed assets were $10.0
million at March 31, 2014, as
compared to $10.0 million at
December 31, 2013 and $27.2 million at March
31, 2013. We continue to actively manage the
resolution process.
Total nonperforming assets were $82.9
million at March 31, 2014,
down from $91.9 million at
December 31, 2013 and $98.6 million at March
31, 2013. Nonperforming assets to total assets were
1.47% at March 31, 2014, down from
1.62% at December 31, 2013 and 1.71%
at March 31, 2013.
Allowance and Provision for Loan Losses
The allowance for loan losses was $82.9
million at March 31, 2014,
compared to $81.9 million at
December 31, 2013 and $82.2 million at March
31, 2013. The allowance for loan losses as a percent
of nonperforming loans was 113.65% at March
31, 2014, as compared to 100.05% at December 31, 2013 and 115.05% at March 31, 2013.
The provision for loan losses was $2.6
million for the first quarter of 2014, compared to
$1.1 million for the fourth quarter
of 2013 and $300,000 for the first
quarter of 2013. The increase of $1.5
million in the first quarter of 2014 as compared to the
fourth quarter of 2013 was primarily due to the establishment of
specific reserves for certain loans in both the commercial and
industrial and commercial real estate secured portfolios.
Balance Sheet
Assets
Total assets at March 31, 2014
were $5.65 billion, down slightly
from $5.69 billion at December 31, 2013.
Cash and cash equivalents were $138.6
million as of March 31, 2014,
as compared to $90.8 million as of
December 31, 2013. The increase
of $47.8 million was primarily due to
timing as March 31, 2014 was a
Monday, which tends to be a higher-balance cash day than other
weekdays.
Investment securities were $1.10
billion at March 31, 2014,
down 1.8% from $1.12 billion at
December 31, 2013.
Loans held for sale were $436.1
million at March 31, 2014, a
decrease of 8.0% from December 31,
2013. The decrease was primarily the result of reduced
mortgage origination volume for the first quarter 2014 by Cole
Taylor Mortgage.
Net loans at March 31, 2014 were
$3.57 billion, as compared to
$3.57 billion at December 31, 2013. Commercial and
industrial loans were $1.94 billion
at March 31, 2014, as compared to
$1.94 billion at December 31, 2013. Commercial real estate
secured loans were $1.11 billion at
March 31, 2014, down slightly from
$1.12 billion at December 31, 2013. Commercial construction
and land loans were $132.7 million at
March 31, 2014, up from $121.7 million at December
31, 2013 due to continued diversification of our loan
portfolio across several construction sectors. Lease
receivables were $143.1 million at
March 31, 2014, up $11.1 million, or 8.4%, from December 31, 2013, primarily as a result of new
leases sourced by our recently expanded direct sales channel.
Consumer loans, which consist primarily of residential mortgages,
were $294.5 million at March 31, 2014, down $6.8
million from December 31,
2013.
Investment in Federal Home Loan Bank and Federal Reserve Bank
("FHLB") stock was $49.6 million as
of March 31, 2014, as compared to
$64.6 million as of December 31, 2013. The decrease of
$15.0 million in these investments
was due to the reduction in the Bank's use of short term FHLB
borrowings.
The MSR asset increased $11.6
million in the first quarter to $227.7 million as of March
31, 2014. The unpaid principal balance of loans
serviced was $20.14 billion as of
March 31, 2014, up 8.9% from
December 31, 2013. The Company
invests in MSRs and retains servicing on most mortgage loans
originated as part of its strategy to diversify the revenue streams
of Cole Taylor Mortgage.
Liabilities and Stockholders' Equity
Total liabilities at March 31,
2014 were $5.17 billion, as
compared to $5.22 billion at
December 31, 2013.
Total deposits were $3.95 billion
at March 31, 2014, compared to
$3.65 billion at December 31, 2013, an increase of 8.3%.
Total deposits increased in the first quarter primarily due to a
planned increase in time deposits, both brokered and CDARS, for
liquidity management purposes. Total time deposits increased
$339.4 million to $1.21 billion at March
31, 2014. Partially offsetting this increase, brokered
money market deposits decreased $45.0
million to $6.1 million at
March 31, 2014, due to timing of
customer activity.
Average total deposits for the first quarter of 2014 decreased
slightly to $3.84 billion from
$3.87 billion in the fourth quarter
of 2013.
Short-term borrowings decreased $335.2
million in the first quarter to $1.04
billion as of March 31, 2014,
primarily due to a planned shift in the funding mix to reduce
short-term borrowings and increase time deposits.
Total stockholders' equity increased $18.0 million from $464.6
million at December 31, 2013
to $482.6 million at March 31, 2014, primarily due to retaining the
net income available to common stockholders earned in the first
quarter and a $7.5 million increase
in accumulated other comprehensive income resulting from an
increase in the market value of available for sale securities.
Capital
At March 31, 2014, the Company's
Tier I Risk Based Capital ratio was 11.67%, while its Total Risk
Based Capital ratio was 12.93% and its Tier I Capital to Average
Assets leverage ratio was 9.73%.
Each of these Company ratios exceeded the regulatory
requirements for well-capitalized banks of 6.00% for the Tier I
Risk Based Capital ratio, 10.00% for the Total Risk Based Capital
ratio and 5.00% for the Tier I Capital to Average Assets leverage
ratio.
Recent Development - Pending Merger Update
As previously disclosed in our Annual Report on Form 10-K for
the year ended December 31, 2013, we
have been notified by our regulators that our Bank subsidiary may
be cited with a violation of Section 5 of the Federal Trade
Commission Act. The potential violation relates to the
checking account opening process associated with a former deposit
program relationship with an organization that provides electronic
financial disbursements and payment services to the higher
education industry. Our Bank exited the relationship in
August 2013. As part of the regulatory approval process for
the merger, an evaluation of this situation is being conducted by
our regulators. That evaluation is ongoing and the closing of
the pending merger could be delayed beyond June 30, 2014.
Accompanying Financial Statements and Tables
This press release is accompanied by the following unaudited
financial information:
- Condensed Consolidated Balance Sheets
- Consolidated Statements of Income
- Summary of Key Quarterly Financial Data
- Summary of Key Period-End Financial Data
- Composition of Loan Portfolio
- Credit Quality
- Loan Portfolio Aging
- Funding Liabilities
- Summary of Quarterly Segment Financial Data
- Reconciliation of U.S. GAAP Financial Measures
About Taylor Capital Group, Inc. (NASDAQ: TAYC)
Taylor Capital Group, Inc. is the holding company of
Cole Taylor Bank, a commercial bank
headquartered in Chicago with
assets of $5.7 billion as of
March 31, 2014. For more than 80
years, Cole Taylor Bank has been
successfully meeting the banking needs of closely-held companies
and the people who own and manage them by focusing on a
relationship-based approach to business. Through its national
businesses, Cole Taylor provides a
full range of financial services, including asset based lending,
commercial equipment financing, and residential mortgage
lending.
Endnotes:
(1) Commercial criticized and
classified loans are defined as special mention, substandard, and
nonaccrual loans in commercial and industrial, commercial real
estate, residential construction and land, and commercial
construction and land, excluding consumer loans.
(2) Credit costs are defined as provision for loan losses
plus nonperforming asset expense.
(3) Schedules reconciling earnings in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP") to the non-GAAP
measurement of revenue and pre-tax, pre-provision operating
earnings are provided in the attached tables.
(4) Revenue is defined as net interest income plus
noninterest income less investment securities gains and losses and
impairment of investment securities.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that
reflect our current expectations and projections about our future
results, performance, prospects and opportunities. We have tried to
identify these forward-looking statements by using words including
"may," "might," "contemplate," "plan," "predict," "potential,"
"should," "will," "expect," "anticipate," "believe," "intend,"
"could," "estimate" and similar expressions. These forward-looking
statements are based on information currently available to us and
are subject to a number of risks, uncertainties and other factors
that could cause our actual results, performance, prospects or
opportunities in 2014 and beyond to differ materially from those
expressed in, or implied by, these forward-looking statements.
These risks, uncertainties and other factors include, without
limitation:
- The Agreement and Plan of Merger (the "Merger Agreement") with
MB Financial may be terminated in accordance with its terms, and
the merger contemplated thereby may not be completed.
- Termination of the Merger Agreement could negatively impact
us.
- We may be subject to business uncertainties and contractual
restrictions while the Merger is pending.
- We and MB Financial have entered into a memorandum of
understanding with the plaintiffs to settle two stockholder actions
previously filed against us, our board of directors and MB
Financial challenging the Merger. It is possible that additional
suits may be filed in the future. If the settlement of these
existing suits is not approved by the court or is otherwise voided,
an adverse ruling in these or any similar future lawsuits may
prevent the Merger from being completed or from being completed
within the expected timeframe.
- The Merger Agreement limits our ability to pursue an
alternative acquisition proposal and requires us to pay a
termination fee of $20 million under
limited circumstances relating to alternative acquisition
proposals.
- We may be materially and adversely affected by the highly
regulated environment in which we operate.
- Dependence on our mortgage business may increase volatility in
our consolidated revenues and earnings and our residential mortgage
lending profitability could be significantly reduced if we are not
able to originate and sell mortgage loans at profitable
margins.
- Changes in interest rates may change the value of our MSR
portfolio which may increase the volatility of our earnings.
- Certain hedging strategies that we use to manage investment in
MSRs, mortgage loans held for sale and interest rate lock
commitments may be ineffective to offset any adverse changes in the
fair value of these assets due to changes in interest rates and
market liquidity.
- Our mortgage loan repurchase reserve for losses could be
insufficient.
- A significant increase in certain loan balances associated with
our mortgage business may result in liquidity risk related to the
funding of these loans.
- We are subject to certain operational risks, including, but not
limited to, data processing system failures and errors and customer
or employee fraud. Our controls and procedures may fail or be
circumvented.
- We are dependent on outside third parties for processing and
handling of our records and data.
- System failure or breaches of our network security, including
with respect to our internet banking activities, could subject us
to increased operating costs as well as litigation and other
liabilities.
- We may not be able to access sufficient and cost-effective
sources of liquidity.
- We are subject to liquidity risk, including unanticipated
deposit volatility.
- Changes in certain credit ratings related to us or our credit
could increase our financing costs or make it more difficult for us
to obtain funding or capital on commercially acceptable terms.
- As a bank holding company, our sources of funds are
limited.
- We are subject to interest rate risk, including interest rate
fluctuations,that could have a material adverse effect on us.
- Competition from financial institutions and other financial
services providers may adversely affect our growth and
profitability and have a material adverse effect on us.
- Our business is subject to the conditions of the economies in
which we operate and continued weakness in those economies and the
real estate markets may materially and adversely affect us.
- Our business is subject to domestic and to a lesser extent,
international economic conditions and other factors, many of which
are beyond our control and could materially and adversely affect
us.
- The preparation of our consolidated financial statements
requires us to make estimates and judgments, including the use of
models, which are subject to an inherent degree of uncertainty and
which may differ from actual results.
- We must manage credit risk and if we are unable to do so, our
allowance for loan losses may prove to be insufficient to absorb
losses in our loan portfolio, which could have a material adverse
effect on us.
- We have counterparty risk and therefore we may be materially
and adversely affected by the soundness of other financial
institutions.
- We are subject to lending concentration risks.
- We are subject to mortgage asset concentration risks.
- Our business strategy is dependent on our continued ability to
attract, develop and retain highly qualified and experienced
personnel in senior management and customer relationship
positions.
- Our reputation could be damaged by negative publicity.
- New and less mature lines of business, new products and
services or new customer relationships may subject us to certain
additional risks.
- We may experience difficulties in managing our future
growth.
- We and our subsidiaries are subject to changes in federal and
state tax laws and changes in interpretation of existing laws.
- Regulatory requirements recently adopted by the U.S. federal
bank regulatory agencies to implement Basel III, growth plans or
operating results may require us to raise additional capital, which
may not be available on favorable terms or at all.
- We have not paid a dividend on our common stock since the
second quarter of 2008. In addition, regulatory restrictions and
liquidity constraints at the holding company level could impair our
ability to make distributions on our outstanding securities.
For further information about these and other risks,
uncertainties and factors, please review the disclosure included in
the section captioned "Risk Factors" in our December 31, 2013 Annual Report on Form 10-K
filed with the Securities and Exchange Commission ("SEC") on
March 7, 2014, current Reports on
Form 8-K and other filings we have made with the SEC. You should
not place undue reliance on any forward-looking statements. We
undertake no obligation to publicly update or revise any
forward-looking statements or risk factors, whether as a result of
new information, future events, changed circumstances or any other
reason after the date of this press release.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
138,569
|
|
|
$
|
90,817
|
|
Investment
securities
|
1,100,056
|
|
|
1,120,731
|
|
Loans held for
sale
|
436,086
|
|
|
473,890
|
|
Loans, net of
allowance for loan losses of $82,891 at March 31, 2014 and $81,864
at December 31, 2013
|
3,568,122
|
|
|
3,566,511
|
|
Premises, leasehold
improvements and equipment, net
|
26,350
|
|
|
26,919
|
|
Investment in Federal
Home Loan Bank and Federal Reserve Bank stock
|
49,617
|
|
|
64,612
|
|
Mortgage servicing
rights
|
227,695
|
|
|
216,111
|
|
Other real estate and
repossessed assets, net
|
9,950
|
|
|
10,049
|
|
Other
assets
|
96,573
|
|
|
116,178
|
|
Total
assets
|
$
|
5,653,018
|
|
|
$
|
5,685,818
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
|
$
|
1,068,207
|
|
|
$
|
1,048,946
|
|
Interest-bearing
|
2,885,178
|
|
|
2,602,037
|
|
Total
deposits
|
3,953,385
|
|
|
3,650,983
|
|
Accrued interest,
taxes and other liabilities
|
87,369
|
|
|
105,350
|
|
Short-term
borrowings
|
1,043,097
|
|
|
1,378,327
|
|
Junior subordinated
debentures
|
86,607
|
|
|
86,607
|
|
Total
liabilities
|
5,170,458
|
|
|
5,221,267
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock,
Series A
|
100,000
|
|
|
100,000
|
|
Nonvoting preferred
stock
|
13
|
|
|
13
|
|
Common
stock
|
308
|
|
|
307
|
|
Surplus
|
417,984
|
|
|
417,429
|
|
Accumulated
deficit
|
(7,486)
|
|
|
(17,430)
|
|
Accumulated other
comprehensive income (loss), net
|
1,326
|
|
|
(6,183)
|
|
Treasury
stock
|
(29,585)
|
|
|
(29,585)
|
|
Total stockholders'
equity
|
482,560
|
|
|
464,551
|
|
Total liabilities and
stockholders' equity
|
$
|
5,653,018
|
|
|
$
|
5,685,818
|
|
CONSOLIDATED
STATEMENTS OF INCOME (unaudited)
|
(dollars in
thousands, except per share data)
|
|
|
For the Three
Months Ended
|
|
Mar 31,
2014
|
|
Dec 31,
2013
|
|
Mar 31,
2013
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
39,811
|
|
|
$
|
39,835
|
|
|
$
|
37,629
|
|
Interest and
dividends on investment securities:
|
|
|
|
|
|
|
|
|
Taxable
|
6,486
|
|
|
7,670
|
|
|
8,617
|
|
Tax-exempt
|
2,545
|
|
|
2,875
|
|
|
1,427
|
|
Interest on cash
equivalents
|
—
|
|
|
—
|
|
|
1
|
|
Total interest
income
|
48,842
|
|
|
50,380
|
|
|
47,674
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
3,169
|
|
|
3,324
|
|
|
4,264
|
|
Short-term
borrowings
|
382
|
|
|
408
|
|
|
420
|
|
Junior subordinated
debentures
|
1,437
|
|
|
1,444
|
|
|
1,443
|
|
Subordinated
notes
|
—
|
|
|
—
|
|
|
864
|
|
Total interest
expense
|
4,988
|
|
|
5,176
|
|
|
6,991
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
43,854
|
|
|
45,204
|
|
|
40,683
|
|
Provision for loan
losses
|
2,600
|
|
|
1,100
|
|
|
300
|
|
Net interest income
after provision for loan losses
|
41,254
|
|
|
44,104
|
|
|
40,383
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Service
charges
|
3,620
|
|
|
3,571
|
|
|
3,491
|
|
Mortgage banking
revenue
|
23,057
|
|
|
27,171
|
|
|
32,030
|
|
Gain on sales of
investment securities, net
|
35
|
|
|
5,891
|
|
|
1
|
|
Other derivative
income (loss)
|
(31)
|
|
|
1,427
|
|
|
1,560
|
|
Letter of credit and
other loan fees
|
1,254
|
|
|
1,102
|
|
|
1,091
|
|
Other noninterest
income
|
1,163
|
|
|
478
|
|
|
1,546
|
|
Total noninterest
income
|
29,098
|
|
|
39,640
|
|
|
39,719
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
34,655
|
|
|
36,099
|
|
|
34,028
|
|
Occupancy of
premises, furniture and equipment
|
3,957
|
|
|
7,239
|
|
|
3,305
|
|
Nonperforming asset
expense
|
166
|
|
|
2,246
|
|
|
559
|
|
FDIC
assessment
|
1,862
|
|
|
1,946
|
|
|
2,024
|
|
Legal fees,
net
|
1,010
|
|
|
1,746
|
|
|
858
|
|
Loan expense,
net
|
2,189
|
|
|
2,081
|
|
|
2,371
|
|
Outside
services
|
3,559
|
|
|
3,300
|
|
|
2,496
|
|
Computer
processing
|
1,768
|
|
|
1,573
|
|
|
966
|
|
Other noninterest
expense
|
5,397
|
|
|
5,849
|
|
|
5,148
|
|
Total noninterest
expense
|
54,563
|
|
|
62,079
|
|
|
51,755
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
15,789
|
|
|
21,665
|
|
|
28,347
|
|
Income tax
expense
|
5,845
|
|
|
6,701
|
|
|
11,090
|
|
Net income
|
9,944
|
|
|
14,964
|
|
|
17,257
|
|
Preferred dividends
and discounts
|
—
|
|
|
(4,876)
|
|
|
(3,661)
|
|
Net income applicable
to common stockholders
|
$
|
9,944
|
|
|
$
|
10,088
|
|
|
$
|
13,596
|
|
|
|
|
|
|
|
|
|
|
Basic income per
common share
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.45
|
|
Diluted income per
common share
|
0.32
|
|
|
0.33
|
|
|
0.44
|
|
Weighted-average
common shares outstanding
|
29,075,072
|
|
|
29,004,826
|
|
|
28,598,194
|
|
Weighted-average
diluted common shares outstanding
|
29,323,756
|
|
|
29,266,098
|
|
|
28,962,425
|
|
SUMMARY OF KEY
QUARTERLY FINANCIAL DATA
|
(dollars in
thousands)
|
Unaudited
|
|
|
2014
|
|
|
2013
|
|
First
Quarter
|
|
Fourth
Quarter
|
|
Third
Quarter
|
|
Second
Quarter
|
|
First
Quarter
|
Condensed Income
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
43,854
|
|
|
$
|
45,204
|
|
|
$
|
46,027
|
|
|
$
|
41,082
|
|
|
$
|
40,683
|
|
Provision for loan
losses
|
2,600
|
|
|
1,100
|
|
|
300
|
|
|
700
|
|
|
300
|
|
Total noninterest
income
|
29,098
|
|
|
39,640
|
|
|
32,472
|
|
|
46,101
|
|
|
39,719
|
|
Total noninterest
expense
|
54,563
|
|
|
62,079
|
|
|
54,542
|
|
|
60,271
|
|
|
51,755
|
|
Income before income
taxes
|
15,789
|
|
|
21,665
|
|
|
23,657
|
|
|
26,212
|
|
|
28,347
|
|
Income tax
expense
|
5,845
|
|
|
6,701
|
|
|
9,488
|
|
|
10,595
|
|
|
11,090
|
|
Net income
|
9,944
|
|
|
14,964
|
|
|
14,169
|
|
|
15,617
|
|
|
17,257
|
|
Preferred dividends
and discounts
|
—
|
|
|
(4,876)
|
|
|
(3,583)
|
|
|
(3,780)
|
|
|
(3,661)
|
|
Net income applicable
to common stockholders
|
$
|
9,944
|
|
|
$
|
10,088
|
|
|
$
|
10,586
|
|
|
$
|
11,837
|
|
|
$
|
13,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
of Performance: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
72,917
|
|
|
$
|
78,953
|
|
|
$
|
78,438
|
|
|
$
|
87,177
|
|
|
$
|
80,401
|
|
Pre-tax,
pre-provision operating earnings
|
18,520
|
|
|
19,120
|
|
|
23,060
|
|
|
31,088
|
|
|
29,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
common share
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
$
|
0.39
|
|
|
$
|
0.45
|
|
Diluted income per
common share
|
0.32
|
|
|
0.33
|
|
|
0.34
|
|
|
0.39
|
|
|
0.44
|
|
Tangible book value
per common share
|
13.02
|
|
|
12.43
|
|
|
12.47
|
|
|
12.22
|
|
|
12.69
|
|
Weighted average
common shares-basic
|
29,075,072
|
|
|
29,004,826
|
|
|
28,936,361
|
|
|
28,687,406
|
|
|
28,595,562
|
|
Weighted average
common shares-diluted
|
29,323,756
|
|
|
29,266,098
|
|
|
29,176,070
|
|
|
28,995,753
|
|
|
28,961,395
|
|
Common shares
outstanding-end of period
|
29,370,998
|
|
|
29,329,530
|
|
|
29,333,540
|
|
|
29,098,639
|
|
|
29,088,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.71
|
%
|
|
1.03
|
%
|
|
0.96
|
%
|
|
1.09
|
%
|
|
1.22
|
%
|
Return on average
common equity
|
10.44
|
%
|
|
10.84
|
%
|
|
11.69
|
%
|
|
12.66
|
%
|
|
14.82
|
%
|
Efficiency ratio
(2)
|
74.83
|
%
|
|
78.63
|
%
|
|
69.54
|
%
|
|
69.14
|
%
|
|
64.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Data: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
5,599,140
|
|
|
$
|
5,827,825
|
|
|
$
|
5,893,140
|
|
|
$
|
5,747,219
|
|
|
$
|
5,642,192
|
|
Investments
|
1,187,563
|
|
|
1,368,550
|
|
|
1,491,554
|
|
|
1,472,316
|
|
|
1,360,213
|
|
Cash
equivalents
|
98
|
|
|
160
|
|
|
541
|
|
|
237
|
|
|
555
|
|
Loans held for
sale
|
420,815
|
|
|
463,756
|
|
|
626,043
|
|
|
634,327
|
|
|
691,134
|
|
Loans
|
3,624,226
|
|
|
3,633,969
|
|
|
3,442,999
|
|
|
3,254,918
|
|
|
3,177,615
|
|
Total
interest-earning assets
|
5,232,702
|
|
|
5,466,435
|
|
|
5,561,137
|
|
|
5,361,798
|
|
|
5,229,517
|
|
Interest-bearing
deposits
|
2,826,405
|
|
|
2,786,288
|
|
|
2,767,265
|
|
|
2,494,537
|
|
|
2,424,772
|
|
Borrowings
|
1,185,596
|
|
|
1,330,934
|
|
|
1,425,545
|
|
|
1,397,300
|
|
|
1,219,977
|
|
Total
interest-bearing liabilities
|
4,012,001
|
|
|
4,117,222
|
|
|
4,192,810
|
|
|
3,891,837
|
|
|
3,644,749
|
|
Noninterest-bearing
deposits
|
1,011,485
|
|
|
1,081,148
|
|
|
1,061,917
|
|
|
1,195,709
|
|
|
1,333,958
|
|
Total stockholders'
equity
|
480,873
|
|
|
526,313
|
|
|
545,391
|
|
|
578,142
|
|
|
570,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Equivalent Net
Interest Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
as stated
|
$
|
43,854
|
|
|
$
|
45,204
|
|
|
$
|
46,027
|
|
|
$
|
41,082
|
|
|
$
|
40,683
|
|
Add: Tax
equivalent adjust. - investment (4)
|
1,370
|
|
|
1,548
|
|
|
1,522
|
|
|
1,119
|
|
|
769
|
|
Tax equivalent adjust. - loans (4)
|
13
|
|
|
26
|
|
|
27
|
|
|
29
|
|
|
29
|
|
Tax equivalent net
interest income
|
$
|
45,237
|
|
|
$
|
46,778
|
|
|
$
|
47,576
|
|
|
$
|
42,230
|
|
|
$
|
41.481
|
|
Net interest margin
without tax adjustment
|
3.38
|
%
|
|
3.29
|
%
|
|
3.29
|
%
|
|
3.07
|
%
|
|
3.14
|
%
|
Net interest margin -
tax equivalent (4)
|
3.49
|
%
|
|
3.41
|
%
|
|
3.41
|
%
|
|
3.16
|
%
|
|
3.20
|
%
|
Yield on earning
assets without tax adjustment
|
3.77
|
%
|
|
3.67
|
%
|
|
3.70
|
%
|
|
3.59
|
%
|
|
3.68
|
%
|
Yield on earning
assets - tax equivalent (4)
|
3.87
|
%
|
|
3.79
|
%
|
|
3.81
|
%
|
|
3.67
|
%
|
|
3.74
|
%
|
Yield on
interest-bearing liabilities
|
0.50
|
%
|
|
0.50
|
%
|
|
0.53
|
%
|
|
0.71
|
%
|
|
0.78
|
%
|
Net interest spread
without tax adjustment
|
3.27
|
%
|
|
3.17
|
%
|
|
3.17
|
%
|
|
2.88
|
%
|
|
2.90
|
%
|
Net interest spread -
tax equivalent (4)
|
3.37
|
%
|
|
3.29
|
%
|
|
3.28
|
%
|
|
2.96
|
%
|
|
2.96
|
%
|
Footnotes:
|
(1)
|
Refer to
Reconciliation of U.S. GAAP Financial Measures for a reconciliation
to GAAP.
|
(2)
|
Efficiency ratio is
determined by dividing noninterest expense by an amount equal to
net interest income plus noninterest income, adjusted for gains or
losses from investment securities.
|
(3)
|
Average balances are
daily averages.
|
(4)
|
Adjustment reflects
tax-exempt interest income on an equivalent before-tax basis
assuming a tax rate of 35.0%
|
SUMMARY OF KEY
PERIOD-END FINANCIAL DATA
|
(dollars in
thousands)
|
Unaudited
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
Condensed Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
$
|
1,100,056
|
|
|
$
|
1,120,731
|
|
|
$
|
1,420,906
|
|
|
$
|
1,434,326
|
|
|
$
|
1,429,971
|
|
Loans held for
sale
|
436,086
|
|
|
473,890
|
|
|
498,276
|
|
|
693,937
|
|
|
668,937
|
|
Loans
|
3,651,013
|
|
|
3,648,375
|
|
|
3,628,658
|
|
|
3,302,548
|
|
|
3,222,794
|
|
Allowance for loan
losses
|
82,891
|
|
|
81,864
|
|
|
85,013
|
|
|
83,576
|
|
|
82,150
|
|
Total
assets
|
5,653,018
|
|
|
5,685,818
|
|
|
6,014,694
|
|
|
5,901,370
|
|
|
5,770,432
|
|
Total
deposits
|
3,953,385
|
|
|
3,650,983
|
|
|
3,697,196
|
|
|
3,692,426
|
|
|
3,794,394
|
|
Total
borrowings
|
1,129,704
|
|
|
1,464,934
|
|
|
1,652,258
|
|
|
1,515,462
|
|
|
1,256,653
|
|
Total stockholders'
equity
|
482,560
|
|
|
464,551
|
|
|
544,719
|
|
|
560,274
|
|
|
573,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
$
|
72,936
|
|
|
$
|
81,825
|
|
|
$
|
86,045
|
|
|
$
|
69,539
|
|
|
$
|
71,404
|
|
Nonperforming
assets
|
82,886
|
|
|
91,874
|
|
|
100,434
|
|
|
89,333
|
|
|
98,622
|
|
Allowance for loan
losses to total loans
|
2.27
|
%
|
|
2.24
|
%
|
|
2.34
|
%
|
|
2.53
|
%
|
|
2.55
|
%
|
Allowance for loan
losses to nonperforming loans
|
113.65
|
%
|
|
100.05
|
%
|
|
98.80
|
%
|
|
120.19
|
%
|
|
115.05
|
%
|
Nonperforming assets
to total loans plus repossessed property
|
2.26
|
%
|
|
2.51
|
%
|
|
2.76
|
%
|
|
2.69
|
%
|
|
3.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Resources
(Taylor Capital Group, Inc.):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital (to
Risk Weighted Assets)
|
12.93
|
%
|
|
12.65
|
%
|
|
14.15
|
%
|
|
15.22
|
%
|
|
16.50
|
%
|
Tier I Capital (to
Risk Weighted Assets)
|
11.67
|
%
|
|
11.40
|
%
|
|
12.89
|
%
|
|
13.96
|
%
|
|
14.45
|
%
|
Leverage (to average
assets)
|
9.73
|
%
|
|
9.18
|
%
|
|
10.30
|
%
|
|
10.87
|
%
|
|
10.91
|
%
|
Total
Capital
|
$
|
600,876
|
|
|
$
|
591,908
|
|
|
$
|
663,917
|
|
|
$
|
679,379
|
|
|
$
|
701,381
|
|
Tier I
Capital
|
542,464
|
|
|
533,123
|
|
|
604,920
|
|
|
623,221
|
|
|
614,382
|
|
COMPOSITION OF LOAN
PORTFOLIO (unaudited)
|
(dollars in
thousands)
|
|
The following table
presents the composition of the Company's loan portfolio as of the
dates indicated:
|
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
Loans
|
|
Balance
|
|
Percent
of
Gross
Loans
|
|
Balance
|
|
Percent
of
Gross
Loans
|
|
Balance
|
|
Percent
of
Gross
Loans
|
Commercial and
industrial
|
|
$
|
1,940,095
|
|
|
53.0
|
%
|
|
$
|
1,935,377
|
|
|
52.9
|
%
|
|
$
|
1,577,241
|
|
|
48.8
|
%
|
Commercial real
estate secured
|
|
1,109,042
|
|
|
30.3
|
|
|
1,124,227
|
|
|
30.7
|
|
|
1,013,252
|
|
|
31.4
|
|
Residential
construction and land
|
|
45,417
|
|
|
1.2
|
|
|
46,079
|
|
|
1.3
|
|
|
40,620
|
|
|
1.3
|
|
Commercial
construction and land
|
|
132,729
|
|
|
3.6
|
|
|
121,682
|
|
|
3.3
|
|
|
121,212
|
|
|
3.7
|
|
Lease
receivables
|
|
143,091
|
|
|
3.9
|
|
|
132,013
|
|
|
3.6
|
|
|
65,028
|
|
|
2.0
|
|
Total commercial
loans
|
|
3,370,374
|
|
|
92.0
|
|
|
3,359,378
|
|
|
91.8
|
|
|
2,817,353
|
|
|
87.2
|
|
Consumer
|
|
294,546
|
|
|
8.0
|
|
|
301,377
|
|
|
8.2
|
|
|
411,905
|
|
|
12.8
|
|
Gross
loans
|
|
3,664,920
|
|
|
100.0
|
%
|
|
3,660,755
|
|
|
100.0
|
%
|
|
3,229,258
|
|
|
100.0
|
%
|
Less: Unearned
discount
|
|
(13,907)
|
|
|
|
|
|
(12,380)
|
|
|
|
|
|
(6,464)
|
|
|
|
|
Total
loans
|
|
3,651,013
|
|
|
|
|
|
3,648,375
|
|
|
|
|
|
3,222,794
|
|
|
|
|
Less: Loan loss
allowance
|
|
(82,891)
|
|
|
|
|
|
(81,864)
|
|
|
|
|
|
(82,150)
|
|
|
|
|
Net loans
|
|
$
|
3,568,122
|
|
|
|
|
|
$
|
3,566,511
|
|
|
|
|
|
$
|
3,140,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held for
Sale
|
|
$
|
436,086
|
|
|
|
|
|
$
|
473,890
|
|
|
|
|
|
$
|
668,937
|
|
|
|
|
The following table
provides details of the Company's commercial real estate
portfolio:
|
|
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
Commercial real
estate secured:
|
|
Balance
|
|
Percent
of
Total
|
|
Balance
|
|
Percent
of
Total
|
|
Balance
|
|
Percent
of
Total
|
Commercial non-owner
occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail strip centers
or malls
|
|
$
|
95,371
|
|
|
8.6
|
%
|
|
$
|
102,195
|
|
|
9.1
|
%
|
|
$
|
107,861
|
|
|
10.6
|
%
|
Office/mixed use
property
|
|
146,822
|
|
|
13.2
|
|
|
126,662
|
|
|
11.3
|
|
|
124,542
|
|
|
12.3
|
|
Commercial
properties
|
|
123,796
|
|
|
11.2
|
|
|
126,608
|
|
|
11.3
|
|
|
107,642
|
|
|
10.6
|
|
Specialized –
other
|
|
102,014
|
|
|
9.2
|
|
|
101,813
|
|
|
9.1
|
|
|
70,271
|
|
|
6.9
|
|
Other commercial
properties
|
|
18,639
|
|
|
1.7
|
|
|
25,483
|
|
|
2.3
|
|
|
27,140
|
|
|
2.8
|
|
Farmland
|
|
2,227
|
|
|
0.2
|
|
|
2,256
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Subtotal commercial
non-owner occupied
|
|
488,869
|
|
|
44.1
|
|
|
485,017
|
|
|
43.3
|
|
|
437,456
|
|
|
43.2
|
|
Commercial
owner-occupied
|
|
491,413
|
|
|
44.3
|
|
|
513,126
|
|
|
45.5
|
|
|
463,166
|
|
|
45.7
|
|
Multi-family
properties
|
|
128,760
|
|
|
11.6
|
|
|
126,084
|
|
|
11.2
|
|
|
112,630
|
|
|
11.1
|
|
Total commercial real
estate
secured
|
|
$
|
1,109,042
|
|
|
100.0
|
%
|
|
$
|
1,124,227
|
|
|
100.0
|
%
|
|
$
|
1,013,252
|
|
|
100.0
|
%
|
CREDIT QUALITY
(unaudited)
|
(dollars in
thousands)
|
|
|
|
At or for the
Three Months Ended
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Mar. 31,
2013
|
Nonperforming
Assets:
|
|
|
|
|
|
|
|
|
|
Loans contractually
past due 90 days or more but still accruing interest
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
$
|
17,841
|
|
|
$
|
15,879
|
|
|
$
|
16,010
|
|
Commercial real
estate secured
|
|
26,589
|
|
|
37,474
|
|
|
23,096
|
|
Residential
construction and land
|
|
—
|
|
|
—
|
|
|
742
|
|
Commercial
construction and land
|
|
22,550
|
|
|
22,550
|
|
|
26,375
|
|
Consumer
|
|
5,956
|
|
|
5,922
|
|
|
5,181
|
|
Total nonaccrual
loans
|
|
72,936
|
|
|
81,825
|
|
|
71,404
|
|
Total nonperforming
loans
|
|
72,936
|
|
|
81,825
|
|
|
71,404
|
|
Other real estate
owned and repossessed assets
|
|
9,950
|
|
|
10,049
|
|
|
27,218
|
|
Total nonperforming
assets
|
|
$
|
82,886
|
|
|
$
|
91,874
|
|
|
$
|
98,622
|
|
|
|
|
|
|
|
|
|
|
|
Other Credit
Quality Information:
|
|
|
|
|
|
|
|
|
|
Commercial criticized
and classified loans (1)
|
|
|
|
|
|
|
|
|
|
Special
mention
|
|
$
|
70,227
|
|
|
$
|
73,093
|
|
|
$
|
49,644
|
|
Substandard
|
|
47,368
|
|
|
39,012
|
|
|
22,649
|
|
Nonaccrual
|
|
66,980
|
|
|
75,903
|
|
|
66,223
|
|
Total commercial
criticized and classified loans
|
|
$
|
184,575
|
|
|
$
|
188,008
|
|
|
$
|
138,516
|
|
Loans contractually
past due 30 – 89 days and still accruing
|
|
$
|
8,035
|
|
|
$
|
5,189
|
|
|
$
|
4,293
|
|
Performing
restructured loans
|
|
35,605
|
|
|
20,736
|
|
|
22,739
|
|
Recorded balance of
impaired loans
|
|
106,066
|
|
|
96,451
|
|
|
90,113
|
|
Allowance for loan
losses related to impaired loans
|
|
18,049
|
|
|
13,687
|
|
|
13,670
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan
Losses Summary:
|
|
|
|
|
|
|
|
|
|
Allowance at
beginning of period
|
|
$
|
81,864
|
|
|
$
|
85,013
|
|
|
$
|
82,191
|
|
(Charge-offs), net of
recoveries:
|
|
|
|
|
|
|
|
|
|
Commercial and
commercial real estate
|
|
(1,819)
|
|
|
(1,713)
|
|
|
114
|
|
Real estate –
construction and land
|
|
426
|
|
|
(2,232)
|
|
|
174
|
|
Consumer
|
|
(180)
|
|
|
(304)
|
|
|
(629)
|
|
Total net
charge-offs
|
|
(1,573)
|
|
|
(4,249)
|
|
|
(341)
|
|
Provision for loan
losses
|
|
2,600
|
|
|
1,100
|
|
|
300
|
|
Allowance at end of
period
|
|
$
|
82,891
|
|
|
$
|
81,864
|
|
|
$
|
82,150
|
|
|
|
|
|
|
|
|
|
|
|
Key Credit
Ratios:
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
|
2.00
|
%
|
|
2.24
|
%
|
|
2.22
|
%
|
Nonperforming assets
to total loans plus repossessed property
|
|
2.26
|
%
|
|
2.51
|
%
|
|
3.03
|
%
|
Nonperforming assets
to total assets
|
|
1.47
|
%
|
|
1.62
|
%
|
|
1.71
|
%
|
Annualized net
charge-offs to average total loans
|
|
0.17
|
%
|
|
0.47
|
%
|
|
0.04
|
%
|
Allowance to total
loans at end of period
|
|
2.27
|
%
|
|
2.24
|
%
|
|
2.55
|
%
|
Allowance to
nonperforming loans
|
|
113.65
|
%
|
|
100.05
|
%
|
|
115.05
|
%
|
30 – 89 days past due
to total loans
|
|
0.22
|
%
|
|
0.14
|
%
|
|
0.13
|
%
|
|
|
(1)
|
Commercial criticized
and classified loans excludes consumer loans.
|
LOAN PORTFOLIO AGING
(unaudited)
|
(dollars in
thousands)
|
|
|
|
As of March 31,
2014
|
|
|
30-89
Days
Past
Due
|
|
>90
Days
Past
Due
and
Still
Accruing
|
|
Nonaccrual
|
|
Current
|
|
Total
Loans
|
|
%
of
Total
Loans
|
|
Allowance
for
Loan Loss
Allocation
|
Commercial and
industrial
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
17,841
|
|
|
$
|
1,922,240
|
|
|
$
|
1,940,095
|
|
|
53
|
%
|
|
$
|
41,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate secured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial non-owner
occupied:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail strip centers
or malls
|
|
—
|
|
|
—
|
|
|
13,398
|
|
|
81,973
|
|
|
95,371
|
|
|
2
|
%
|
|
2,469
|
|
Office/mixed use
property
|
|
—
|
|
|
—
|
|
|
302
|
|
|
146,520
|
|
|
146,822
|
|
|
4
|
%
|
|
2,473
|
|
Commercial
properties
|
|
—
|
|
|
—
|
|
|
389
|
|
|
123,407
|
|
|
123,796
|
|
|
3
|
%
|
|
3,100
|
|
Specialized –
other
|
|
—
|
|
|
—
|
|
|
4,528
|
|
|
97,486
|
|
|
102,014
|
|
|
3
|
%
|
|
1,502
|
|
Other commercial
properties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,639
|
|
|
18,639
|
|
|
1
|
%
|
|
273
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,227
|
|
|
2,227
|
|
|
—
|
%
|
|
33
|
|
Subtotal commercial
non-owner occupied
|
|
—
|
|
|
—
|
|
|
18,617
|
|
|
470,252
|
|
|
488,869
|
|
|
13
|
%
|
|
9,850
|
|
Commercial
owner-occupied
|
|
1,049
|
|
|
—
|
|
|
7,805
|
|
|
482,559
|
|
|
491,413
|
|
|
13
|
%
|
|
8,380
|
|
Multi-family
properties
|
|
—
|
|
|
—
|
|
|
167
|
|
|
128,593
|
|
|
128,760
|
|
|
4
|
%
|
|
2,109
|
|
Total commercial
real
estate
secured
|
|
1,049
|
|
|
—
|
|
|
26,589
|
|
|
1,081,404
|
|
|
1,109,042
|
|
|
30
|
%
|
|
20,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
construction and land:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,026
|
|
|
30,026
|
|
|
1
|
%
|
|
2,884
|
|
Land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,391
|
|
|
15,391
|
|
|
—
|
%
|
|
1,548
|
|
Total residential
construction and land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,417
|
|
|
45,417
|
|
|
1
|
%
|
|
4,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
construction and land
|
|
—
|
|
|
—
|
|
|
22,550
|
|
|
110,179
|
|
|
132,729
|
|
|
4
|
%
|
|
8,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease receivables,
net of unearned discount
|
|
2,319
|
|
|
—
|
|
|
—
|
|
|
126,865
|
|
|
129,184
|
|
|
4
|
%
|
|
775
|
|
Total commercial
loans
|
|
3,382
|
|
|
—
|
|
|
66,980
|
|
|
3,286,105
|
|
|
3,356,467
|
|
|
92
|
%
|
|
75,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
|
4,653
|
|
|
—
|
|
|
5,956
|
|
|
283,937
|
|
|
294,546
|
|
|
8
|
%
|
|
7,227
|
|
Total
loans
|
|
$
|
8,035
|
|
|
$
|
—
|
|
|
$
|
72,936
|
|
|
$
|
3,570,042
|
|
|
$
|
3,651,013
|
|
|
100
|
%
|
|
$
|
82,891
|
|
FUNDING LIABILITIES
(unaudited)
|
(dollars in
thousands)
|
|
The following table
presents the distribution of the Company's average deposit account
balances for the periods indicated:
|
|
|
For the Three
Months Ended
|
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
|
Average
Balance
|
|
Percent of
Deposits
|
|
Average
Balance
|
|
Percent of
Deposits
|
|
Average
Balance
|
|
Percent of
Deposits
|
Noninterest-bearing
deposits
|
$
|
1,011,485
|
|
|
26.4
|
%
|
|
$
|
1,081,148
|
|
|
28.0
|
%
|
|
$
|
1,333,958
|
|
|
35.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial interest
checking
|
377,103
|
|
|
9.8
|
|
|
360,476
|
|
|
9.3
|
|
|
—
|
|
|
—
|
|
NOW
accounts
|
555,784
|
|
|
14.5
|
|
|
597,373
|
|
|
15.4
|
|
|
717,410
|
|
|
19.1
|
|
Savings
deposits
|
40,600
|
|
|
1.1
|
|
|
40,355
|
|
|
1.0
|
|
|
40,255
|
|
|
1.1
|
|
Money market
accounts
|
694,531
|
|
|
18.1
|
|
|
728,419
|
|
|
18.8
|
|
|
746,542
|
|
|
19.9
|
|
Brokered money market
deposits
|
9,085
|
|
|
0.2
|
|
|
37,874
|
|
|
1.0
|
|
|
11,942
|
|
|
0.3
|
|
Certificates of
deposit
|
476,370
|
|
|
12.4
|
|
|
493,291
|
|
|
12.8
|
|
|
550,430
|
|
|
14.6
|
|
Brokered certificates
of deposit
|
290,749
|
|
|
7.6
|
|
|
268,982
|
|
|
7.0
|
|
|
181,740
|
|
|
4.8
|
|
CDARS time
deposits
|
334,262
|
|
|
8.7
|
|
|
205,088
|
|
|
5.3
|
|
|
162,662
|
|
|
4.3
|
|
Public time
deposits
|
47,921
|
|
|
1.2
|
|
|
54,430
|
|
|
1.4
|
|
|
13,791
|
|
|
0.4
|
|
Total
interest-bearing deposits
|
2,826,405
|
|
|
73.6
|
|
|
2,786,288
|
|
|
72.0
|
|
|
2,424,772
|
|
|
64.5
|
|
Total
deposits
|
$
|
3,837,890
|
|
|
100.0
|
%
|
|
$
|
3,867,436
|
|
|
100.0
|
%
|
|
$
|
3,758,730
|
|
|
100.0
|
%
|
The following table
sets forth the period-end balances of total deposits as of each of
the dates indicated below.
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
Noninterest-bearing
deposits
|
|
$
|
1,068,207
|
|
|
$
|
1,048,946
|
|
|
$
|
1,326,483
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
Commercial interest
checking
|
|
373,467
|
|
|
377,631
|
|
|
—
|
|
NOW
accounts
|
|
572,259
|
|
|
566,269
|
|
|
819,101
|
|
Savings
accounts
|
|
41,229
|
|
|
40,357
|
|
|
40,646
|
|
Money market
accounts
|
|
684,358
|
|
|
698,302
|
|
|
741,818
|
|
Brokered money market
deposits
|
|
6,081
|
|
|
51,124
|
|
|
—
|
|
Certificates of
deposit
|
|
507,239
|
|
|
472,222
|
|
|
548,767
|
|
Brokered certificates
of deposit
|
|
428,502
|
|
|
203,715
|
|
|
171,320
|
|
CDARS time
deposits
|
|
214,479
|
|
|
142,835
|
|
|
135,630
|
|
Public time
deposits
|
|
57,564
|
|
|
49,582
|
|
|
10,629
|
|
Total
interest-bearing deposits
|
|
2,885,178
|
|
|
2,602,037
|
|
|
2,467,911
|
|
Total
deposits
|
|
$
|
3,953,385
|
|
|
$
|
3,650,983
|
|
|
$
|
3,794,394
|
|
SUMMARY OF QUARTERLY
SEGMENT FINANCIAL DATA (unaudited)
|
(dollars in
thousands)
|
|
|
|
For the Three
Months Ended
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
|
BANKING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
40,528
|
|
|
$
|
40,975
|
|
|
$
|
40,780
|
|
|
$
|
37,175
|
|
|
$
|
36,181
|
|
|
Provision for loan
losses
|
|
2,603
|
|
|
1,210
|
|
|
233
|
|
|
946
|
|
|
292
|
|
|
Total noninterest
income
|
|
6,001
|
|
|
12,428
|
|
|
7,284
|
|
|
7,528
|
|
|
7,647
|
|
|
Total noninterest
expense
|
|
25,947
|
|
|
28,363
|
|
|
23,473
|
|
|
25,770
|
|
|
25,468
|
|
|
Income before income
taxes
|
|
17,979
|
|
|
23,830
|
|
|
24,358
|
|
|
17,987
|
|
|
18,068
|
|
|
Income tax
expense
|
|
7,102
|
|
|
9,413
|
|
|
9,621
|
|
|
7,105
|
|
|
7,136
|
|
|
Net income
|
|
$
|
10,877
|
|
|
$
|
14,417
|
|
|
$
|
14,737
|
|
|
$
|
10,882
|
|
|
$
|
10,932
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
|
MORTGAGE
BANKING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
4,735
|
|
|
$
|
5,517
|
|
|
$
|
6,499
|
|
|
$
|
5,742
|
|
|
$
|
6,414
|
|
|
Provision for loan
losses
|
|
(3)
|
|
|
(110)
|
|
|
67
|
|
|
(246)
|
|
|
8
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan origination
income
|
|
11,292
|
|
|
13,943
|
|
|
17,249
|
|
|
29,355
|
|
|
26,430
|
|
|
Net servicing
income
|
|
11,763
|
|
|
13,226
|
|
|
7,896
|
|
|
9,176
|
|
|
5,600
|
|
|
Total noninterest
income
|
|
23,055
|
|
|
27,169
|
|
|
25,145
|
|
|
38,531
|
|
|
32,030
|
|
|
Total noninterest
expense
|
|
27,943
|
|
|
29,222
|
|
|
29,063
|
|
|
29,086
|
|
|
26,287
|
|
|
Income (loss) before
income taxes
|
|
(150)
|
|
|
3,574
|
|
|
2,514
|
|
|
15,433
|
|
|
12,149
|
|
|
Income tax expense
(benefit)
|
|
(278)
|
|
|
1,033
|
|
|
(19)
|
|
|
4,928
|
|
|
3,375
|
|
|
Net income
|
|
$
|
128
|
|
|
$
|
2,541
|
|
|
$
|
2,533
|
|
|
$
|
10,505
|
|
|
$
|
8,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination
Volume
|
|
$
|
1,052,106
|
|
|
$
|
1,169,098
|
|
|
$
|
1,596,431
|
|
|
$
|
1,874,248
|
|
|
$
|
1,907,642
|
|
|
Refinance
%
|
|
41
|
%
|
|
40
|
%
|
|
37
|
%
|
|
62
|
%
|
|
77
|
%
|
|
Purchase %
|
|
59
|
%
|
|
60
|
%
|
|
63
|
%
|
|
38
|
%
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End
Balances
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
|
Mortgage servicing
book
|
|
$
|
20,136,044
|
|
|
$
|
18,496,230
|
|
|
$
|
16,431,269
|
|
|
$
|
12,740,176
|
|
|
$
|
10,506,034
|
|
|
Mortgage servicing
rights
|
|
227,695
|
|
|
216,111
|
|
|
184,237
|
|
|
145,729
|
|
|
106,576
|
|
|
The Company has identified two operating segments for purposes
of financial reporting: Banking and Mortgage Banking. The
Banking operating segment includes commercial banking, asset-based
lending, equipment finance, retail banking and all other functions
that support those units. The Mortgage Banking operating
segment originates mortgage loans for sale to investors and for the
Company's portfolio through its retail and third party
channels. This segment also services mortgage loans for
various investors and for loans owned by the Company. Segment
results are presented based on our management accounting
practices. The information presented in our segment reporting
is based on internal allocations, which involve management judgment
and is subject to periodic adjustments and enhancements. In
addition, the Company utilizes an Other category that includes
subordinated debt expense, certain parent company activities,
expenses related to the pending merger with MB Financial, and
residual income tax expense or benefit.
RECONCILIATION OF
U.S. GAAP FINANCIAL MEASURES (unaudited)
|
(dollars in
thousands)
|
|
The following
reconciles the income before income taxes to pre-tax, pre-provision
operating earnings for the periods indicated.
|
|
|
For the Three
Months Ended
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
|
Income before income
taxes
|
|
$
|
15,789
|
|
|
$
|
21,665
|
|
|
$
|
23,657
|
|
|
$
|
26,212
|
|
|
$
|
28,347
|
|
|
Add back
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
2,600
|
|
|
1,100
|
|
|
300
|
|
|
700
|
|
|
300
|
|
|
Nonperforming asset
expense
|
|
166
|
|
|
2,246
|
|
|
(836)
|
|
|
(1,198)
|
|
|
559
|
|
|
Credit costs
subtotal
|
|
2,766
|
|
|
3,346
|
|
|
(536)
|
|
|
(498)
|
|
|
859
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of
investment securities
|
|
(35)
|
|
|
(5,891)
|
|
|
(61)
|
|
|
(6)
|
|
|
(1)
|
|
|
Early extinguishment
of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,380
|
|
|
—
|
|
|
Other
subtotal
|
|
(35)
|
|
|
(5,891)
|
|
|
(61)
|
|
|
5,374
|
|
|
(1)
|
|
|
Pre-tax,
pre-provision operating earnings
|
|
$
|
18,520
|
|
|
$
|
19,120
|
|
|
$
|
23,060
|
|
|
$
|
31,088
|
|
|
$
|
29,205
|
|
|
The following details
the components of revenue for the periods indicated.
|
|
|
For the Three
Months Ended
|
|
|
Mar. 31,
2014
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
Jun. 30,
2013
|
|
Mar. 31,
2013
|
|
Net interest
income
|
|
$
|
43,854
|
|
|
$
|
45,204
|
|
|
$
|
46,027
|
|
|
$
|
41,082
|
|
|
$
|
40,683
|
|
|
Noninterest
income
|
|
29,098
|
|
|
39,640
|
|
|
32,472
|
|
|
46,101
|
|
|
39,719
|
|
|
Add back
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of
investment securities
|
|
(35)
|
|
|
(5,891)
|
|
|
(61)
|
|
|
(6)
|
|
|
(1)
|
|
|
Revenue
|
|
$
|
72,917
|
|
|
$
|
78,953
|
|
|
$
|
78,438
|
|
|
$
|
87,177
|
|
|
$
|
80,401
|
|
|
The Company's accounting and reporting policies conform to U.S.
generally accepted accounting principles ("GAAP") and general
practice within the banking industry. Management uses certain
non-GAAP financial measures to evaluate the Company's financial
performance and has provided the non-GAAP measures of pre-tax,
pre-provision operating earnings and of revenue. In the
pre-tax, pre-provision operating earnings non-GAAP financial
measure, the provision for loan losses, nonperforming asset expense
and certain non-recurring items, such as gains and losses on
investment securities and early extinguishment of debt are excluded
from the determination of operating results. The non-GAAP
measure of revenue is calculated as the sum of net interest income
and noninterest income adjusted by investment securities gains and
losses. Management believes that these measures are useful
because they provide a more comparable basis for evaluating
financial performance from period to period.
SOURCE Taylor Capital Group, Inc.