SUFFOLK, Va., Jan. 27, 2022 (GLOBE NEWSWIRE) --
TowneBank (the "Company" or "Towne") (Nasdaq: TOWN) today reported
financial results for the full year and the fourth quarter ended
December 31, 2021. For the year ended December 31, 2021,
earnings were $215.38 million, or $2.97 per diluted share,
compared to $145.54 million, or $2.01 per diluted share for
the year ended December 31, 2020. Earnings in the fourth
quarter of 2021 were $40.18 million, or $0.55 per diluted
share, compared to fourth quarter 2020 earnings of
$50.08 million, or $0.69 per diluted share.
"We were pleased with our performance for 2021,
highlighted by our 22nd year of increased earnings. We achieved
record financial results with total revenues surpassing
$680 million for the year, which illustrates the value of
Towne’s diversified business model. Credit quality remained
excellent and strong deposit growth across all markets was a bright
spot for the year, leading the way for TowneBank to maintain the #1
market share position for our home market in Hampton Roads. These
accomplishments were the result of the hard work and dedication
from our nearly 2,900 team members who embrace and define our
culture of caring each day," said G. Robert Aston, Jr., Executive
Chairman.
Annual Highlights for 2021 Compared to
2020:
- Total revenues were
$680.33 million for the year ended December 31, 2021, an
increase from the prior year of $16.00 million, or 2.41%.
Increases in net interest income of $22.23 million were
partially offset by a $6.23 million decline in noninterest
income. The decrease in noninterest income was driven by a decline
in residential mortgage banking income of $2.86 million and an
$8.38 million decline in gain on investment securities.
Property management income increased by $15.70 million,
year-over-year. A 2020 nonrecurring gain on the sale of
Red Sky Insurance totaling $17.63 million also contributed to
the comparative decline.
- Pre-provision, pre-tax, net revenues
(non-GAAP) were $253.41, an increase of $8.80 million, or
3.60%.
- Loans held for investment declined
$0.12 billion, or 1.28% from December 31, 2020. The balances at
December 31, 2021 and 2020 included $0.16 billion and $0.86
billion, respectively, of loans originated under the Paycheck
Protection Program ("PPP"). Excluding PPP loans, loans held for
investment increased $0.58 billion, or 6.56%, compared to prior
year.
- Total deposits were $13.57 billion, an
increase of $2.0 billion, or 17.29% compared to prior year.
- Book value per share was $26.13, an
increase of 7.47% over prior year. Tangible book value
(non-GAAP) per share was $19.15, compared to $17.46 in 2020, an
increase of 9.65%.
- Return on average assets was 1.40% in
2021, compared to 1.03% in the prior year. Return on average
tangible assets (non-GAAP) increased 33.23% to 1.51% in 2021.
- Return on average common shareholders'
equity was 11.70% and return on average tangible common
shareholders' equity was 16.75% (non-GAAP).
- Taxable equivalent net interest margin
of 2.86% (non-GAAP) compared to 3.18% in the prior year.
- Effective tax rate
of 20.28% compared to 17.98% in 2020.
Highlights for Fourth Quarter 2021
Compared to Fourth Quarter 2020:
- Total revenues were
$160.42 million, in fourth quarter 2021, a decrease from the
prior year quarter of $11.42 million, or 6.65%.
Increases in insurance and property management income were more
than offset by a $16.56 million decrease in residential
mortgage banking income as mortgage demand continued to normalize
after the interest rate driven surge in 2020.
- Pre-provision, pre-tax, net revenues
(non-GAAP) were $48.48 million, a decrease of
$13.62 million, or 21.93%.
- Loans held for investment increased
$0.21 billion, or 2.24%, in fourth quarter 2021. Excluding PPP
loans, loans held for investment increased $0.30 billion, or 13.26%
on an annualized basis, from the linked quarter.
- Total deposits were
$13.57 billion, an increase of $0.56 billion, or 4.30%,
from September 30, 2021, or 17.06% on an annualized basis.
- Noninterest bearing deposits increased
by 26.79%, to $5.55 billion, compared to prior year,
representing 40.86% of total deposits. Compared to the linked
quarter, noninterest bearing deposits increased 11.16% on an
annualized basis.
- In the quarter ended December 31,
2021, annualized return on average common shareholders' equity was
8.45% and annualized return on average tangible common
shareholders' equity was 12.22% (non-GAAP). For the full 12 months,
return on average common shareholders' equity was 11.70% and return
on average tangible common shareholders' equity was 16.75%
(non-GAAP).
- Net interest margin of 2.70% and
taxable equivalent net interest margin of 2.72% (non-GAAP) compared
to the prior year quarter of 2.97% and 2.98%, respectively.
- Effective tax rate
of 18.97% compared to 17.21% in fourth quarter 2020 and 22.73% in
the linked quarter.
"From a strategic perspective, we were encouraged
to see loan growth momentum build in the back half of 2021. We have
several new banking locations coming fully online in 2022 and
expect to continue expanding our impressive suite of noninterest
income sources. We are well-positioned to deploy our excess
liquidity and should benefit in a rising rate environment," said J.
Morgan Davis, Chief Executive Officer.
Quarterly Net
Interest Income Compared to the Fourth
Quarter of 2020:
- Net interest income was
$100.79 million compared to $100.61 million for the
quarter ended December 31, 2020.
- Taxable equivalent net interest margin
(non-GAAP) was 2.72%, including purchase accounting accretion of
2 basis points and PPP accretion of 7 basis points,
compared to 2.98%, including purchase accounting accretion of
5 basis points and PPP accretion of 10 basis points, for
fourth quarter 2020.
- On an average basis, loans held for
investment, with a yield of 4.05%, represented 63.26% of earning
assets in the fourth quarter of 2021 compared to a yield of 4.28%,
which represented 72.32% of earning assets in the fourth quarter of
2020.
- Interest and fee income on PPP loans
was $3.85 million in fourth quarter 2021, compared to
$7.77 million in the linked quarter, and $11.29 million
in fourth quarter 2020.
- Total cost of deposits decreased to
0.16% from 0.37% at December 31, 2020.
- Average interest-earning assets
totaled $14.80 billion at December 31, 2021 compared to
$13.48 billion at December 31, 2020, an increase of
9.78%.
- Average
interest-bearing liabilities totaled $8.26 billion, an
increase of $0.23 billion, or 2.88%, from the prior year.
- We expect to
continue positioning our earning asset portfolio to positively
benefit interest margin in anticipation of a rising rate
environment.
Quarterly Provision for Credit
Losses:
- The quarterly provision for credit
losses for on-balance-sheet loans was a benefit of
$1.18 million compared to a provision expense of
$1.21 million one year ago and a benefit of $1.60 million
in the linked quarter.
- The fourth quarter 2021 included a
release in the allowance for credit losses of $1.12 million
that was driven by a combination of net recoveries and improvement
in the current economic forecast, offset by core loan growth.
- Net recoveries were $0.06 million
compared to net charge-offs of $0.11 million one year prior.
The ratio of net charge-offs (recoveries) to average loans on an
annualized basis was 0.00% in fourth quarter 2021 and 2020, and
(0.03)% in the linked quarter.
- The allowance for
credit losses on loans represented 1.12% of total loans compared to
1.15% at September 30, 2021 and 1.25% at December 31, 2020.
Excluding PPP loans, which are fully government guaranteed, the
allowance for credit losses on loans (non-GAAP) was 1.13% at
December 31, 2021, 1.18% at September 30, 2021, and 1.37% at
December 31, 2020. The allowance for credit losses on loans
was 17.76 times nonperforming loans compared to 12.68 times at
September 30, 2021 and 10.74 times at December 31, 2020.
- Expected loss
estimates are subject to change based on continuing review of
models and assumptions, portfolio performance, changes in
forecasted macroeconomic conditions and loan mix, which could
result in material changes to the reserve in future periods.
Quarterly Noninterest Income Compared to
Fourth Quarter 2020:
- Total noninterest income was
$59.63 million compared to $71.23 million in 2020, a
decrease of $11.60 million, or 16.29%. Residential mortgage
banking income decreased $16.56 million, while insurance
commissions increased $1.62 million, and property management
income increased $3.43 million.
- Residential mortgage banking income
was $20.95 million compared to $37.50 million in fourth
quarter 2020. Loan volume in the current quarter was
$1.15 billion, with purchase activity comprising 79.36%. Loan
volume in fourth quarter 2020 was $1.69 billion, with purchase
activity of 59.76%. Loan volume in the linked quarter was
$1.31 billion with purchase activity of 77.45%.
Mortgage rates have increased compared to prior periods, resulting
in a decline in refinance activity.
- In addition to declines in mortgage
volume and margin from prior periods, the income statement impact
of derivative instruments in the fourth quarter of 2021 was a net
loss of $2.90 million, compared to a net gain of
$1.30 million in the fourth quarter of 2020, and a net loss of
$0.77 million in the linked quarter.
- Total insurance segment revenue
increased $2.26 million, or 13.31%, to $19.26 million in
the fourth quarter of 2021. This increase is attributable to higher
property and casualty commissions and contingency income, compared
to the prior year quarter. We acquired an insurance agency in
December 2020, which brought in $0.53 million in additional revenue
in fourth quarter 2021.
- Property management
fee revenue increased 60.62%, or $3.43 million, as compared to
fourth quarter 2020 due to strong fourth quarter 2021 reservation
activity. In July 2021, the Company acquired Venture Resorts, a
cabin rental company in the Smoky Mountains of Tennessee, which
brought in an additional $2.02 million in property management fees
in the quarter.
Quarterly Noninterest Expense Compared
to Fourth Quarter 2020:
- Total noninterest expense was
$110.47 million compared to $105.93 million, an increase
of $4.54 million, or 4.28%. This reflects increases of
$3.34 million in salary and benefits expense,
$1.16 million in data processing expense, and
$1.21 million in advertising and marketing expenses. The
Venture Resorts acquisition resulted in an additional $3.72 million
of noninterest expenses during the quarter.
- Increases in salaries and benefits
compared to fourth quarter 2020 were driven by second quarter 2021
annual base salary adjustments, business acquisitions, and year-end
production-related bonuses.
- Higher credit card fees on vacation
property reservation activities and increased costs associated with
our core banking platform drove the increase in data processing
expense.
- Advertising and marketing expenses
increased, primarily in our Realty segment, driven by production
based advertising programs in our property management companies and
a consumer mortgage advertising program in our residential mortgage
operations.
- We expect first
quarter 2022 noninterest expenses to be slightly lower than the
current quarter and average $107 million to $109 million
on a quarterly basis throughout 2022.
Consolidated Balance Sheet
Highlights:
- Total assets were $16.36 billion
at December 31, 2021, an increase of 11.86%, compared to
$14.63 billion at December 31, 2020. The increase was
driven by increased liquidity levels related to strong deposit
growth.
- Loans held for investment decreased
$0.12 billion, or 1.28%, compared to year end 2020, but
increased $0.21 billion compared to the linked quarter.
Excluding PPP loans of $0.16 billion in fourth quarter 2021,
$0.86 billion in fourth quarter 2020, and $0.25 billion
in the linked quarter, loans held for investment increased
$0.58 million, or 6.56%, compared to prior year, and
$0.30 million, or 2.24%, compared to September 30, 2021, or
13.26% on an annualized basis.
- Average loans held for investment,
excluding PPP loans, were $9.17 billion in fourth quarter
2021, an increase of $444.58 million, or 5.09%, compared to
prior year. In the linked quarter comparison, average loans held
for investment, excluding PPP loans, increased 3.16%, or
$280.75 million, 12.53% on an annualized basis.
- Unamortized fee income related to PPP
loans was $4.16 million at December 31, 2021 and
$14.79 million at December 31, 2020.
- Mortgage loans held for sale decreased
$0.18 billion, or 33.75%, compared to prior year and
$0.07 billion, or 17.03%, compared to the linked quarter.
- Total deposits
increased $2.0 billion, or 17.29%, over December 31,
2020, and increased $0.56 billion, or 4.30%, compared to the
linked quarter.
- Total borrowings
decreased $0.47 billion, or 49.59%, from prior year and
$0.01 billion, or 1.16%, compared to the linked quarter.
Investment Securities:
- Total investment
securities were $1.98 billion compared to $1.59 billion
at September 30, 2021 and $1.42 billion at December 31,
2020. The weighted average duration of the portfolio at
December 31, 2021 was 3.89 years. The carrying value of the
AFS debt securities portfolio included $17.54 million in net
unrealized gains compared to $58.32 million in net unrealized
gains at December 31, 2020.
- We anticipate
continuing to strategically deploy excess liquidity at a similar
pace in the first half of 2022.
Loans and Asset
Quality:
- Total loans held for investment were
$9.51 billion at December 31, 2021 compared to
$9.30 billion at September 30, 2021 and $9.63 billion at
December 31, 2020.
- Nonperforming assets were
$10.56 million, or 0.06% of total assets, compared to
$16.21 million, or 0.11% of total assets, at December 31,
2020.
- Nonperforming loans were 0.06% of
period end loans compared to 0.12% at December 31, 2020.
- Foreclosed property
increased $0.30 million from $4.28 million at
December 31, 2020. On January 14, 2022, the
Company recognized a nominal gain on the sale of a foreclosed
property, which had been carried on the balance sheet at $3.55
million at December 31, 2021.
Deposits and
Borrowings:
- Total deposits were
$13.57 billion compared to $13.01 billion at September
30, 2021 and $11.57 billion at December 31, 2020.
- Total loans held for investment to
total deposits were 70.03% compared to 71.44% at September 30, 2021
and 83.20% at December 31, 2020.
- Non-interest bearing deposits were
40.86% of total deposits at December 31, 2021 compared to
41.45% at September 30, 2021 and 37.80% at December 31, 2020.
Non-interest bearing deposits experienced typical seasonality
during the fourth quarter.
- Total borrowings
were $0.48 billion compared to $0.49 billion and
$0.96 billion at September 30, 2021 and December 31,
2020, respectively.
Capital:
- Common equity tier 1 capital ratio of
12.36%.
- Tier 1 leverage capital ratio of
9.12%.
- Tier 1 risk-based capital ratio of
12.50%.
- Total risk-based capital ratio of
15.56%.
- Book value per share was $26.13
compared to $25.91 at September 30, 2021 and $24.31 at
December 31, 2020.
- Tangible book value
per share (non-GAAP) was $19.15 compared to $18.92 at September 30,
2021 and $17.46 at December 31, 2020.
Annual Meeting of
Shareholders:
TowneBank intends to hold its 2022 Annual Meeting of Shareholders
at 11:30 a.m. on Wednesday, May 25, 2022 at the Virginia
Beach Convention Center, 1000 19th Street in Virginia Beach,
Virginia.
About TowneBank:
Founded in 1999, TowneBank is a company built on relationships,
offering a full range of banking and other financial services, with
a mission of serving others and enriching lives. Dedicated to a
culture of caring, Towne values all employees and members by
embracing their diverse talents, perspectives, and experiences.
Today, TowneBank operates over 40 banking offices
throughout Hampton Roads and Central Virginia, as well as
Northeastern and Central North Carolina – serving as a local leader
in promoting the social, cultural, and economic growth in each
community. Towne offers a competitive array of business and
personal banking solutions, delivered with only the highest ethical
standards. Experienced local bankers providing a higher level of
expertise and personal attention with local decision-making are key
to the TowneBank strategy. TowneBank has grown its capabilities
beyond banking to provide expertise through its controlled
divisions and subsidiaries that include Towne Investment Group,
Towne Wealth Management, Towne Insurance Agency, Towne Benefits,
TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire
Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and
Towne Vacations. With total assets of $16.36 billion as of
December 31, 2021, TowneBank is one of the largest banks
headquartered in Virginia.
Non-GAAP Financial Measures:
This press release contains certain financial
measures determined by methods other than in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). Such non-GAAP financial measures include the
following: fully tax-equivalent net interest margin, tangible book
value per common share, total risk-based capital ratio, tier one
leverage ratio, tier one capital ratio, and the tangible common
equity to tangible assets ratio. Management uses these non-GAAP
financial measures to assess the performance of TowneBank’s core
business and the strength of its capital position. Management
believes that these non-GAAP financial measures provide meaningful
additional information about TowneBank to assist investors in
evaluating operating results, financial strength, and
capitalization. The non-GAAP financial measures should be
considered as additional views of the way our financial measures
are affected by significant charges for credit costs and other
factors. These non-GAAP financial measures should not be considered
as a substitute for operating results determined in accordance with
GAAP and may not be comparable to other similarly titled measures
of other companies. The computations of the non-GAAP financial
measures used in this presentation are referenced in a footnote or
in the appendix to this presentation.
Forward-Looking Statements:
This press release contains certain forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not historical facts, but instead
represent only the beliefs, expectations, or opinions of TowneBank
and its management regarding future events, many of which, by their
nature, are inherently uncertain. Forward-looking statements may be
identified by the use of such words as: "believe," "expect,"
"anticipate," "intend," "plan," "estimate," or words of similar
meaning, or future or conditional terms, such as "will," "would,"
"should," "could," "may," "likely," "probably," or "possibly."
These statements may address issues that involve significant risks,
uncertainties, estimates, and assumptions made by management.
Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include the
impacts of the ongoing COVID-19 pandemic and the associated efforts
to limit the spread of the virus; competitive pressures in the
banking industry that may increase significantly; changes in the
interest rate environment that may reduce margins and/or the
volumes and values of loans made or held as well as the value of
other financial assets held; changes in the credit worthiness of
customers and the possible impairment of the collectability of
loans; general economic conditions, either nationally or
regionally, that may be less favorable than expected, resulting in,
among other things, a deterioration in credit quality and/or a
reduced demand for credit or other services; changes in the
legislative or regulatory environment, including changes in
accounting standards and tax laws, that may adversely affect our
business; costs or difficulties related to the integration of the
businesses we have acquired may be greater than expected; expected
cost savings associated with pending or recently completed
acquisitions may not be fully realized or realized within the
expected time frame; cybersecurity threats or attacks, the
implementation of new technologies, and the ability to develop and
maintain reliable electronic systems; our competitors may have
greater financial resources and develop products that enable them
to compete more successfully; changes in business conditions;
changes in the securities market; and changes in our local economy
with regard to our market area. Any forward-looking statements made
by us or on our behalf speak only as of the date they are made or
as of the date indicated, and we do not undertake any obligation to
update forward-looking statements as a result of new information,
future events, or otherwise. For additional information on factors
that could materially influence forward-looking statements included
in this release, see the "Risk Factors" in TowneBank’s Annual
Report on Form 10-K for the year ended December 31, 2020 and
related disclosures in other filings that have been, or will be,
filed by TowneBank with the Federal Deposit Insurance
Corporation.
Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
J. Morgan Davis, Chief Executive Officer, 757-673-1673
Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813
TOWNEBANK |
Selected Financial Highlights (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Income and Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Total revenue, net of interest expense |
$ |
160,424 |
|
|
$ |
170,076 |
|
|
$ |
167,321 |
|
|
$ |
182,509 |
|
|
$ |
171,848 |
|
|
Net income |
|
41,657 |
|
|
|
52,743 |
|
|
|
58,002 |
|
|
|
72,631 |
|
|
|
53,891 |
|
|
Net income available to common shareholders |
|
40,183 |
|
|
|
50,400 |
|
|
|
55,803 |
|
|
|
68,995 |
|
|
|
50,082 |
|
|
Pre-provision, pre-tax, net revenues (non-GAAP) |
|
48,483 |
|
|
|
63,647 |
|
|
|
59,728 |
|
|
|
81,578 |
|
|
|
62,107 |
|
|
Net income per common share - diluted |
|
0.55 |
|
|
|
0.69 |
|
|
|
0.77 |
|
|
|
0.95 |
|
|
|
0.69 |
|
|
Book value per common share |
|
26.13 |
|
|
|
25.91 |
|
|
|
25.51 |
|
|
|
24.78 |
|
|
|
24.31 |
|
|
Book value per share - tangible (non-GAAP) |
|
19.15 |
|
|
|
18.92 |
|
|
|
18.70 |
|
|
|
17.94 |
|
|
|
17.46 |
|
|
Return on average assets |
|
0.99 |
% |
|
|
1.27 |
% |
|
|
1.48 |
% |
|
|
1.92 |
% |
|
|
1.35 |
% |
|
Return on average assets - tangible (non-GAAP) |
|
1.08 |
% |
|
|
1.37 |
% |
|
|
1.59 |
% |
|
|
2.05 |
% |
|
|
1.46 |
% |
|
Return on average equity |
|
8.38 |
% |
|
|
10.59 |
% |
|
|
12.21 |
% |
|
|
15.56 |
% |
|
|
11.26 |
% |
|
Return on average equity - tangible (non-GAAP) |
|
12.08 |
% |
|
|
15.09 |
% |
|
|
17.38 |
% |
|
|
22.19 |
% |
|
|
16.28 |
% |
|
Return on average common equity |
|
8.45 |
% |
|
|
10.68 |
% |
|
|
12.31 |
% |
|
|
15.70 |
% |
|
|
11.36 |
% |
|
Return on average common equity - tangible
(non-GAAP) |
|
12.22 |
% |
|
|
15.27 |
% |
|
|
17.57 |
% |
|
|
22.45 |
% |
|
|
16.48 |
% |
|
Noninterest income as a percentage of total revenue |
|
37.17 |
% |
|
|
40.94 |
% |
|
|
39.55 |
% |
|
|
45.21 |
% |
|
|
41.45 |
% |
Regulatory Capital Ratios (1): |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 |
|
12.36 |
% |
|
|
12.53 |
% |
|
|
12.42 |
% |
|
|
12.15 |
% |
|
|
11.87 |
% |
|
Tier 1 |
|
12.50 |
% |
|
|
12.69 |
% |
|
|
12.57 |
% |
|
|
12.30 |
% |
|
|
12.04 |
% |
|
Total |
|
15.56 |
% |
|
|
15.85 |
% |
|
|
15.76 |
% |
|
|
15.59 |
% |
|
|
15.42 |
% |
|
Tier 1 leverage ratio |
|
9.12 |
% |
|
|
9.18 |
% |
|
|
9.44 |
% |
|
|
9.54 |
% |
|
|
8.99 |
% |
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
|
17.76x |
|
|
|
12.68x |
|
|
|
9.67x |
|
|
|
9.09x |
|
|
|
10.74x |
|
|
Allowance for credit losses on loans to period end loans |
|
1.12 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.19 |
% |
|
|
1.25 |
% |
|
Allowance for credit losses on loans to period end loans excluding
PPP loans (non-GAAP) |
|
1.13 |
% |
|
|
1.18 |
% |
|
|
1.22 |
% |
|
|
1.31 |
% |
|
|
1.37 |
% |
|
Nonperforming loans to period end loans |
|
0.06 |
% |
|
|
0.09 |
% |
|
|
0.12 |
% |
|
|
0.13 |
% |
|
|
0.12 |
% |
|
Nonperforming assets to period end assets |
|
0.06 |
% |
|
|
0.09 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
Net charge-offs (recoveries) to average loans (annualized) |
|
— |
% |
|
|
(0.03 |
)% |
|
|
(0.01 |
)% |
|
|
0.03 |
% |
|
|
— |
% |
|
Net charge-offs (recoveries) |
|
(60 |
) |
|
|
(644 |
) |
|
|
(137 |
) |
|
|
669 |
|
|
|
109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
5,973 |
|
|
$ |
8,451 |
|
|
$ |
11,178 |
|
|
$ |
12,768 |
|
|
$ |
11,188 |
|
|
Former bank premises |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
750 |
|
|
Foreclosed property |
|
4,583 |
|
|
|
5,409 |
|
|
|
4,041 |
|
|
|
3,748 |
|
|
|
4,276 |
|
|
Total nonperforming assets |
$ |
10,556 |
|
|
$ |
13,860 |
|
|
$ |
15,219 |
|
|
$ |
17,266 |
|
|
$ |
16,214 |
|
|
Loans past due 90 days and still accruing interest |
$ |
372 |
|
|
$ |
143 |
|
|
$ |
1,584 |
|
|
$ |
108 |
|
|
$ |
528 |
|
|
Allowance for credit losses on loans |
|
106,059 |
|
|
|
107,177 |
|
|
|
108,130 |
|
|
|
116,077 |
|
|
|
120,157 |
|
Mortgage Banking: |
|
|
|
|
|
|
|
|
|
|
Loans originated, mortgage |
$ |
851,021 |
|
|
$ |
939,272 |
|
|
$ |
1,050,663 |
|
|
$ |
1,187,595 |
|
|
$ |
1,257,963 |
|
|
Loans originated, joint venture |
|
303,362 |
|
|
|
370,865 |
|
|
|
403,864 |
|
|
|
417,177 |
|
|
|
429,848 |
|
|
Total loans originated |
$ |
1,154,383 |
|
|
$ |
1,310,137 |
|
|
$ |
1,454,527 |
|
|
$ |
1,604,772 |
|
|
$ |
1,687,811 |
|
|
Number of loans originated |
|
3,408 |
|
|
|
3,917 |
|
|
|
4,514 |
|
|
|
5,164 |
|
|
|
5,481 |
|
|
Number of originators |
|
213 |
|
|
|
219 |
|
|
|
222 |
|
|
|
229 |
|
|
|
228 |
|
|
Purchase % |
|
79.36 |
% |
|
|
77.45 |
% |
|
|
76.95 |
% |
|
|
53.45 |
% |
|
|
59.76 |
% |
|
Loans sold |
$ |
1,150,996 |
|
|
$ |
1,394,166 |
|
|
$ |
1,485,057 |
|
|
$ |
1,601,480 |
|
|
$ |
1,845,926 |
|
|
Rate lock asset |
$ |
3,455 |
|
|
$ |
6,087 |
|
|
$ |
7,760 |
|
|
$ |
12,522 |
|
|
$ |
11,781 |
|
|
Gross realized gain on sales and fees as a % of loans
originated |
|
3.42 |
% |
|
|
3.61 |
% |
|
|
3.64 |
% |
|
|
4.01 |
% |
|
|
4.02 |
% |
Other Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
2.70 |
% |
|
|
2.76 |
% |
|
|
2.92 |
% |
|
|
3.04 |
% |
|
|
2.97 |
% |
|
Net interest margin-fully tax equivalent (non-GAAP) |
|
2.72 |
% |
|
|
2.78 |
% |
|
|
2.94 |
% |
|
|
3.06 |
% |
|
|
2.98 |
% |
|
Average earning assets/total average assets |
|
92.08 |
% |
|
|
91.89 |
% |
|
|
91.89 |
% |
|
|
91.46 |
% |
|
|
91.59 |
% |
|
Average loans/average deposits |
|
70.68 |
% |
|
|
71.69 |
% |
|
|
78.22 |
% |
|
|
82.71 |
% |
|
|
83.42 |
% |
|
Average noninterest deposits/total average deposits |
|
41.42 |
% |
|
|
40.40 |
% |
|
|
40.21 |
% |
|
|
38.39 |
% |
|
|
39.61 |
% |
|
Period end equity/period end total assets |
|
11.71 |
% |
1 |
|
12.02 |
% |
|
|
11.83 |
% |
|
|
12.04 |
% |
|
|
12.20 |
% |
|
Efficiency ratio (non-GAAP) |
|
67.03 |
% |
|
|
59.58 |
% |
|
|
61.46 |
% |
|
|
52.11 |
% |
|
|
60.02 |
% |
|
(1) Current reporting period regulatory capital ratios are
preliminary. |
|
|
|
|
|
|
TOWNEBANK |
Selected Data (unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities |
|
|
|
|
|
|
% Change |
|
|
Q4 |
|
Q4 |
|
Q3 |
|
Q4 21 vs. |
|
Q4 21 vs. |
|
Available-for-sale securities, at fair
value |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
Q4 20 |
|
Q3 21 |
|
U.S. agency securities |
$ |
310,587 |
|
|
$ |
184,657 |
|
|
$ |
207,949 |
|
|
|
68.20 |
% |
|
|
49.36 |
% |
|
U.S. Treasury notes |
|
1,000 |
|
|
|
1,000 |
|
|
|
1,007 |
|
|
|
— |
% |
|
|
(0.70 |
)% |
|
Municipal securities |
|
385,673 |
|
|
|
353,651 |
|
|
|
350,980 |
|
|
|
9.05 |
% |
|
|
9.88 |
% |
|
Trust preferred and other corporate securities |
|
53,950 |
|
|
|
31,499 |
|
|
|
31,591 |
|
|
|
71.28 |
% |
|
|
70.78 |
% |
|
Mortgage-backed securities issued by GSE and GNMA |
|
1,055,183 |
|
|
|
797,765 |
|
|
|
969,017 |
|
|
|
32.27 |
% |
|
|
8.89 |
% |
|
Allowance for credit losses |
|
(210 |
) |
|
|
(348 |
) |
|
|
(142 |
) |
|
|
(39.66 |
)% |
|
|
47.89 |
% |
|
Total |
$ |
1,806,183 |
|
|
$ |
1,368,224 |
|
|
$ |
1,560,402 |
|
|
|
32.01 |
% |
|
|
15.75 |
% |
|
Gross unrealized gains (losses) reflected in financial
statements |
|
|
|
|
|
|
|
|
|
|
Total gross unrealized gains |
$ |
32,054 |
|
|
$ |
60,025 |
|
|
$ |
40,906 |
|
|
|
(46.60 |
)% |
|
|
(21.64 |
)% |
|
Total gross unrealized losses |
|
(14,514 |
) |
|
|
(1,703 |
) |
|
|
(8,845 |
) |
|
|
752.26 |
% |
|
|
64.09 |
% |
|
Net unrealized gain (loss) on AFS securities |
$ |
17,540 |
|
|
$ |
58,322 |
|
|
$ |
32,061 |
|
|
|
(69.93 |
)% |
|
|
(45.29 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities, at amortized
cost |
|
|
|
|
|
|
|
|
|
|
U.S. agency securities |
$ |
73,360 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
100.00 |
% |
|
|
100.00 |
% |
|
U.S. Treasury notes |
|
66,326 |
|
|
|
— |
|
|
|
— |
|
|
|
100.00 |
% |
|
|
100.00 |
% |
|
Municipal securities |
|
5,095 |
|
|
|
5,012 |
|
|
|
2,285 |
|
|
|
1.66 |
% |
|
|
122.98 |
% |
|
Trust preferred corporate securities |
|
2,272 |
|
|
|
2,321 |
|
|
|
5,074 |
|
|
|
(2.11 |
)% |
|
|
(55.22 |
)% |
|
Mortgage-backed securities issued by GSE and GNMA |
|
7,168 |
|
|
|
9,179 |
|
|
|
7,539 |
|
|
|
(21.91 |
)% |
|
|
(4.92 |
)% |
|
Allowance for credit losses |
|
(94 |
) |
|
|
(97 |
) |
|
|
(94 |
) |
|
|
(3.09 |
)% |
|
|
— |
% |
|
Total |
$ |
154,127 |
|
|
$ |
16,415 |
|
|
$ |
14,804 |
|
|
|
838.94 |
% |
|
|
941.12 |
% |
Gross unrealized gains (losses) not reflected in
financial statements |
|
|
|
|
|
|
|
|
|
Total gross unrealized gains |
$ |
1,561 |
|
|
$ |
1,957 |
|
|
$ |
1,591 |
|
|
|
(20.24 |
)% |
|
|
(1.89 |
)% |
|
Total gross unrealized losses |
|
(106 |
) |
|
|
— |
|
|
|
— |
|
|
n/m |
|
n/m |
|
Net unrealized gain (loss) on HTM securities |
$ |
1,455 |
|
|
$ |
1,957 |
|
|
$ |
1,591 |
|
|
|
(25.65 |
)% |
|
|
(8.55 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held For Investment (1) |
|
|
|
|
|
|
% Change |
|
|
Q4 |
|
Q4 |
|
Q3 |
|
Q4 21 vs. |
|
Q4 21 vs. |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
Q4 20 |
|
Q3 21 |
|
Real estate - construction and development |
$ |
1,125,863 |
|
|
$ |
1,199,772 |
|
|
$ |
1,005,592 |
|
|
|
(6.16 |
)% |
|
|
11.96 |
% |
|
Commercial real estate - owner occupied |
|
1,494,000 |
|
|
|
1,380,516 |
|
|
|
1,463,000 |
|
|
|
8.22 |
% |
|
|
2.12 |
% |
|
Commercial real estate - non owner occupied |
|
2,620,334 |
|
|
|
2,335,235 |
|
|
|
2,647,625 |
|
|
|
12.21 |
% |
|
|
(1.03 |
)% |
|
Multifamily |
|
332,659 |
|
|
|
295,488 |
|
|
|
363,733 |
|
|
|
12.58 |
% |
|
|
(8.54 |
)% |
|
Residential 1-4 family |
|
1,305,915 |
|
|
|
1,216,629 |
|
|
|
1,233,125 |
|
|
|
7.34 |
% |
|
|
5.90 |
% |
|
HELOC |
|
380,834 |
|
|
|
412,476 |
|
|
|
389,974 |
|
|
|
(7.67 |
)% |
|
|
(2.34 |
)% |
|
Commercial and industrial
business (C&I) |
|
1,206,911 |
|
|
|
1,990,808 |
|
|
|
1,253,972 |
|
|
|
(39.38 |
)% |
|
|
(3.75 |
)% |
|
Government |
|
525,358 |
|
|
|
379,243 |
|
|
|
471,037 |
|
|
|
38.53 |
% |
|
|
11.53 |
% |
|
Indirect |
|
394,802 |
|
|
|
271,459 |
|
|
|
348,864 |
|
|
|
45.44 |
% |
|
|
13.17 |
% |
|
Consumer loans and other |
|
119,576 |
|
|
|
147,442 |
|
|
|
120,643 |
|
|
|
(18.90 |
)% |
|
|
(0.88 |
)% |
|
Total |
$ |
9,506,252 |
|
|
$ |
9,629,068 |
|
|
$ |
9,297,565 |
|
|
|
(1.28 |
)% |
|
|
2.24 |
% |
(1) PPP loans totaling $0.16 billion, $0.86 billion and $0.25
billion, primarily in C&I, are included in Q4 2021, Q4 2020 and
Q3 2021, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
% Change |
|
|
Q4 |
|
Q4 |
|
Q3 |
|
Q4 21 vs. |
|
Q4 21 vs. |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
Q4 20 |
|
Q3 21 |
|
Noninterest-bearing demand |
$ |
5,546,665 |
|
|
$ |
4,374,566 |
|
|
$ |
5,394,952 |
|
|
|
26.79 |
% |
|
|
2.81 |
% |
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
6,139,714 |
|
|
|
4,819,604 |
|
|
|
5,681,181 |
|
|
|
27.39 |
% |
|
|
8.07 |
% |
|
Savings |
|
371,356 |
|
|
|
330,091 |
|
|
|
366,165 |
|
|
|
12.50 |
% |
|
|
1.42 |
% |
|
Certificates of deposits |
|
1,515,891 |
|
|
|
2,048,905 |
|
|
|
1,571,752 |
|
|
|
(26.01 |
)% |
|
|
(3.55 |
)% |
|
Total |
$ |
13,573,626 |
|
|
$ |
11,573,166 |
|
|
$ |
13,014,050 |
|
|
|
17.29 |
% |
|
|
4.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (net of unearned income
and deferred costs), excluding
nonaccrual loans (1) |
$ |
9,364,498 |
|
|
$ |
95,696 |
|
|
4.05 |
% |
|
$ |
9,238,922 |
|
|
$ |
98,732 |
|
|
4.24 |
% |
|
$ |
9,752,150 |
|
|
$ |
104,799 |
|
|
4.28 |
% |
Taxable investment securities |
|
1,625,683 |
|
|
|
10,217 |
|
|
2.51 |
% |
|
|
1,421,347 |
|
|
|
6,560 |
|
|
1.85 |
% |
|
|
1,250,375 |
|
|
|
6,878 |
|
|
2.20 |
% |
Tax-exempt investment securities |
|
157,855 |
|
|
|
292 |
|
|
0.74 |
% |
|
|
125,523 |
|
|
|
487 |
|
|
1.55 |
% |
|
|
139,572 |
|
|
|
520 |
|
|
1.49 |
% |
Total securities |
|
1,783,538 |
|
|
|
10,509 |
|
|
2.36 |
% |
|
|
1,546,870 |
|
|
|
7,047 |
|
|
1.82 |
% |
|
|
1,389,947 |
|
|
|
7,398 |
|
|
2.13 |
% |
Interest-bearing deposits |
|
3,274,392 |
|
|
|
1,215 |
|
|
0.15 |
% |
|
|
3,179,010 |
|
|
|
1,182 |
|
|
0.15 |
% |
|
|
1,754,365 |
|
|
|
435 |
|
|
0.10 |
% |
Loans held for sale |
|
379,808 |
|
|
|
2,750 |
|
|
2.90 |
% |
|
|
468,323 |
|
|
|
3,406 |
|
|
2.91 |
% |
|
|
587,517 |
|
|
|
3,867 |
|
|
2.63 |
% |
Total earning assets |
|
14,802,236 |
|
|
|
110,170 |
|
|
2.95 |
% |
|
|
14,433,125 |
|
|
|
110,367 |
|
|
3.03 |
% |
|
|
13,483,979 |
|
|
|
116,499 |
|
|
3.44 |
% |
Less: allowance for credit losses |
|
(107,215 |
) |
|
|
|
|
|
|
(108,478 |
) |
|
|
|
|
|
|
(121,402 |
) |
|
|
|
|
Total nonearning assets |
|
1,380,488 |
|
|
|
|
|
|
|
1,382,351 |
|
|
|
|
|
|
|
1,359,808 |
|
|
|
|
|
Total assets |
$ |
16,075,509 |
|
|
|
|
|
|
$ |
15,706,998 |
|
|
|
|
|
|
$ |
14,722,385 |
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
5,853,873 |
|
|
$ |
2,148 |
|
|
0.15 |
% |
|
$ |
5,486,788 |
|
|
$ |
2,095 |
|
|
0.15 |
% |
|
$ |
4,582,588 |
|
|
$ |
2,633 |
|
|
0.23 |
% |
Savings |
|
371,901 |
|
|
|
534 |
|
|
0.57 |
% |
|
|
358,739 |
|
|
|
533 |
|
|
0.59 |
% |
|
|
317,561 |
|
|
|
552 |
|
|
0.69 |
% |
Certificates of deposit |
|
1,541,483 |
|
|
|
2,707 |
|
|
0.70 |
% |
|
|
1,842,948 |
|
|
|
3,400 |
|
|
0.73 |
% |
|
|
2,159,573 |
|
|
|
7,578 |
|
|
1.40 |
% |
Total interest-bearing deposits |
|
7,767,257 |
|
|
|
5,389 |
|
|
0.28 |
% |
|
|
7,688,475 |
|
|
|
6,028 |
|
|
0.31 |
% |
|
|
7,059,722 |
|
|
|
10,763 |
|
|
0.61 |
% |
Borrowings |
|
245,622 |
|
|
|
360 |
|
|
0.58 |
% |
|
|
300,505 |
|
|
|
412 |
|
|
0.54 |
% |
|
|
722,291 |
|
|
|
1,645 |
|
|
0.89 |
% |
Subordinated debt, net |
|
249,555 |
|
|
|
2,962 |
|
|
4.75 |
% |
|
|
249,405 |
|
|
|
2,962 |
|
|
4.75 |
% |
|
|
248,965 |
|
|
|
2,962 |
|
|
4.76 |
% |
Total interest-bearing liabilities |
|
8,262,434 |
|
|
|
8,711 |
|
|
0.42 |
% |
|
|
8,238,385 |
|
|
|
9,402 |
|
|
0.45 |
% |
|
|
8,030,978 |
|
|
|
15,370 |
|
|
0.76 |
% |
Demand deposits |
|
5,492,894 |
|
|
|
|
|
|
|
5,212,271 |
|
|
|
|
|
|
|
4,630,665 |
|
|
|
|
|
Other noninterest-bearing liabilities |
|
417,707 |
|
|
|
|
|
|
|
367,891 |
|
|
|
|
|
|
|
291,836 |
|
|
|
|
|
Total liabilities |
|
14,173,035 |
|
|
|
|
|
|
|
13,818,547 |
|
|
|
|
|
|
|
12,953,479 |
|
|
|
|
|
Shareholders’ equity |
|
1,902,474 |
|
|
|
|
|
|
|
1,888,451 |
|
|
|
|
|
|
|
1,768,906 |
|
|
|
|
|
Total liabilities and equity |
$ |
16,075,509 |
|
|
|
|
|
|
$ |
15,706,998 |
|
|
|
|
|
|
$ |
14,722,385 |
|
|
|
|
|
Net interest income (tax-equivalent basis) (4) |
|
|
$ |
101,459 |
|
|
|
|
|
|
$ |
100,965 |
|
|
|
|
|
|
$ |
101,129 |
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(667 |
) |
|
|
|
|
|
|
(522 |
) |
|
|
|
|
|
|
(515 |
) |
|
|
Net interest income (GAAP) |
|
|
$ |
100,792 |
|
|
|
|
|
|
$ |
100,443 |
|
|
|
|
|
|
$ |
100,614 |
|
|
|
Interest rate spread (2)(3) |
|
|
|
|
2.53 |
% |
|
|
|
|
|
2.58 |
% |
|
|
|
|
|
2.68 |
% |
Interest expense as a percent of average earning assets |
|
|
|
0.23 |
% |
|
|
|
|
|
0.26 |
% |
|
|
|
|
|
0.45 |
% |
Net interest margin (tax equivalent basis) (3)(4) |
|
|
|
2.72 |
% |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.98 |
% |
Total cost of deposits |
|
|
|
|
0.16 |
% |
|
|
|
|
|
0.19 |
% |
|
|
|
|
|
0.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 31, 2021, December 31, 2020, and
September 30, 2021 balances include average PPP balances of $0.20
billion, $1.04 billion, and $0.36 billion, and related
interest and fee income of $3.85 million, $11.29 million, and $7.77
million, respectively. There were no PPP balances at December 31,
2019.
(2) Interest spread is the average yield earned on earning assets
less the average rate paid on interest-bearing liabilities. Fully
tax equivalent.
(3) Net interest margin is net interest income expressed as a
percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (net of unearned income
and deferred costs), excluding
nonaccrual loans (1) |
$ |
9,462,448 |
|
|
$ |
397,877 |
|
|
4.20 |
% |
|
$ |
9,420,584 |
|
|
$ |
411,421 |
|
|
4.37 |
% |
|
$ |
8,122,210 |
|
|
$ |
405,511 |
|
|
4.99 |
% |
Taxable investment securities |
|
1,426,493 |
|
|
|
29,857 |
|
|
2.09 |
% |
|
|
1,252,926 |
|
|
|
30,181 |
|
|
2.41 |
% |
|
|
1,202,107 |
|
|
|
34,141 |
|
|
2.84 |
% |
Tax-exempt investment securities |
|
137,848 |
|
|
|
1,755 |
|
|
1.27 |
% |
|
|
140,078 |
|
|
|
2,997 |
|
|
2.14 |
% |
|
|
102,731 |
|
|
|
3,426 |
|
|
3.34 |
% |
Total securities |
|
1,564,341 |
|
|
|
31,612 |
|
|
2.02 |
% |
|
|
1,393,004 |
|
|
|
33,178 |
|
|
2.38 |
% |
|
|
1,304,838 |
|
|
|
37,567 |
|
|
2.88 |
% |
Interest-bearing deposits |
|
2,640,191 |
|
|
|
3,432 |
|
|
0.13 |
% |
|
|
689,715 |
|
|
|
2,603 |
|
|
0.38 |
% |
|
|
665,903 |
|
|
|
13,825 |
|
|
2.08 |
% |
Mortgage loans held for sale |
|
471,767 |
|
|
|
13,227 |
|
|
2.80 |
% |
|
|
505,502 |
|
|
|
15,252 |
|
|
3.02 |
% |
|
|
335,588 |
|
|
|
13,379 |
|
|
3.99 |
% |
Total earning assets |
|
14,138,747 |
|
|
|
446,148 |
|
|
3.16 |
% |
|
|
12,008,805 |
|
|
|
462,454 |
|
|
3.85 |
% |
|
|
10,428,539 |
|
|
|
470,282 |
|
|
4.51 |
% |
Less: allowance for credit losses |
|
(113,113 |
) |
|
|
|
|
|
|
(85,570 |
) |
|
|
|
|
|
|
(54,476 |
) |
|
|
|
|
Total nonearning assets |
|
1,359,028 |
|
|
|
|
|
|
|
2,248,971 |
|
|
|
|
|
|
|
1,264,363 |
|
|
|
|
|
Total assets |
$ |
15,384,662 |
|
|
|
|
|
|
$ |
14,172,206 |
|
|
|
|
|
|
$ |
11,638,426 |
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
5,359,321 |
|
|
$ |
8,323 |
|
|
0.16 |
% |
|
$ |
4,070,562 |
|
|
$ |
13,105 |
|
|
0.32 |
% |
|
$ |
3,351,135 |
|
|
$ |
26,909 |
|
|
0.80 |
% |
Savings |
|
352,333 |
|
|
|
2,117 |
|
|
0.60 |
% |
|
|
297,441 |
|
|
|
2,254 |
|
|
0.76 |
% |
|
|
280,894 |
|
|
|
3,296 |
|
|
1.17 |
% |
Certificates of deposit |
|
1,788,985 |
|
|
|
16,669 |
|
|
0.93 |
% |
|
|
2,378,281 |
|
|
|
42,502 |
|
|
1.79 |
% |
|
|
2,478,663 |
|
|
|
56,050 |
|
|
2.26 |
% |
Total interest-bearing deposits |
|
7,500,639 |
|
|
|
27,109 |
|
|
0.36 |
% |
|
|
6,746,284 |
|
|
|
57,861 |
|
|
0.86 |
% |
|
|
6,110,692 |
|
|
|
86,255 |
|
|
1.41 |
% |
Borrowings |
|
395,045 |
|
|
|
2,159 |
|
|
0.54 |
% |
|
|
1,269,064 |
|
|
|
10,306 |
|
|
0.80 |
% |
|
|
609,142 |
|
|
|
11,368 |
|
|
1.84 |
% |
Subordinated debt, net |
|
249,335 |
|
|
|
11,816 |
|
|
4.74 |
% |
|
|
248,736 |
|
|
|
11,847 |
|
|
4.76 |
% |
|
|
248,139 |
|
|
|
11,847 |
|
|
4.77 |
% |
Total interest-bearing liabilities |
|
8,145,019 |
|
|
|
41,084 |
|
|
0.50 |
% |
|
|
8,264,084 |
|
|
|
80,014 |
|
|
0.97 |
% |
|
|
6,967,973 |
|
|
|
109,470 |
|
|
1.57 |
% |
Demand deposits |
|
5,034,851 |
|
|
|
|
|
|
|
3,924,797 |
|
|
|
|
|
|
|
2,844,178 |
|
|
|
|
|
Other noninterest-bearing liabilities |
|
348,844 |
|
|
|
|
|
|
|
262,266 |
|
|
|
|
|
|
|
228,994 |
|
|
|
|
|
Total liabilities |
|
13,528,714 |
|
|
|
|
|
|
|
12,451,147 |
|
|
|
|
|
|
|
10,041,145 |
|
|
|
|
|
Shareholders' equity |
|
1,855,948 |
|
|
|
|
|
|
|
1,721,059 |
|
|
|
|
|
|
|
1,597,281 |
|
|
|
|
|
Total liabilities and equity |
$ |
15,384,662 |
|
|
|
|
|
|
$ |
14,172,206 |
|
|
|
|
|
|
$ |
11,638,426 |
|
|
|
|
|
Net interest income (tax-equivalent basis) (4) |
|
$ |
405,064 |
|
|
|
|
|
|
$ |
382,440 |
|
|
|
|
|
|
$ |
360,812 |
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
(2,695 |
) |
|
|
|
|
|
|
(2,296 |
) |
|
|
|
|
|
|
(2,457 |
) |
|
|
Net interest income (GAAP) |
|
$ |
402,369 |
|
|
|
|
|
|
$ |
380,144 |
|
|
|
|
|
|
$ |
358,355 |
|
|
|
Interest rate spread (2)(4) |
|
|
|
2.65 |
% |
|
|
|
|
|
2.88 |
% |
|
|
|
|
|
2.94 |
% |
Interest expense as a percent of average earning assets |
|
|
|
0.29 |
% |
|
|
|
|
|
0.67 |
% |
|
|
|
|
|
1.05 |
% |
Net interest margin (tax-equivalent basis) (3)(4) |
|
|
|
2.86 |
% |
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
3.46 |
% |
Total cost of deposits |
|
|
|
0.22 |
% |
|
|
|
|
|
0.54 |
% |
|
|
|
|
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) December 31, 2021 and December 31, 2020
balances include average PPP balances of $0.53 billion and $0.74
billion and related interest and fee income of $33.27 million and
$26.94 million, respectively There were no PPP balances at December
31, 2019.
(2) Interest spread is the average yield earned on earning assets
less the average rate paid on interest-bearing liabilities. Fully
tax equivalent.
(3) Net interest margin is net interest income expressed as a
percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
TOWNEBANK |
Consolidated Balance Sheets |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
Cash and due from banks |
$ |
17,373 |
|
|
$ |
41,514 |
|
Interest-bearing deposits at FRB - Richmond |
|
3,244,484 |
|
|
|
1,795,241 |
|
Interest-bearing deposits in financial institutions |
|
34,779 |
|
|
|
27,532 |
|
Total Cash and Cash Equivalents |
|
3,296,636 |
|
|
|
1,864,287 |
|
Securities available for sale, at fair value (amortized cost of
$1,788,853 and $1,310,250, and allowance for credit losses of $210
and $348 at December 31, 2021 and December 31, 2020,
respectively. |
|
1,806,183 |
|
|
|
1,368,224 |
|
Securities held to maturity, at amortized cost (fair value $155,676
and $18,469 at December 31, 2021 and December 31, 2020,
respectively. |
|
154,221 |
|
|
|
16,512 |
|
Less: allowance for credit losses |
|
(94 |
) |
|
|
(97 |
) |
Securities held to maturity, net of allowance for credit
losses |
|
154,127 |
|
|
|
16,415 |
|
Other equity securities |
|
6,759 |
|
|
|
6,492 |
|
FHLB stock |
|
13,146 |
|
|
|
30,135 |
|
Total Securities |
|
1,980,215 |
|
|
|
1,421,266 |
|
Mortgage loans held for sale |
|
358,303 |
|
|
|
540,798 |
|
Loans, net of unearned income and deferred costs |
|
9,506,252 |
|
|
|
9,629,068 |
|
Less: allowance for credit losses |
|
(106,059 |
) |
|
|
(120,157 |
) |
Net Loans |
|
9,400,193 |
|
|
|
9,508,911 |
|
Premises and equipment, net |
|
270,772 |
|
|
|
260,242 |
|
Goodwill |
|
457,187 |
|
|
|
452,328 |
|
Other intangible assets, net |
|
50,379 |
|
|
|
45,533 |
|
BOLI |
|
251,805 |
|
|
|
246,109 |
|
Other assets |
|
295,897 |
|
|
|
286,970 |
|
TOTAL ASSETS |
$ |
16,361,387 |
|
|
$ |
14,626,444 |
|
LIABILITIES AND EQUITY |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing demand |
$ |
5,546,665 |
|
|
$ |
4,374,566 |
|
Interest-bearing: |
|
|
|
Demand and money market accounts |
|
6,139,714 |
|
|
|
4,819,604 |
|
Savings |
|
371,356 |
|
|
|
330,091 |
|
Certificates of deposit |
|
1,515,891 |
|
|
|
2,048,905 |
|
Total Deposits |
|
13,573,626 |
|
|
|
11,573,166 |
|
Advances from the FHLB |
|
155,367 |
|
|
|
456,038 |
|
Subordinated debt, net |
|
249,652 |
|
|
|
249,055 |
|
FRB PPP Lending Facility |
|
— |
|
|
|
182,852 |
|
Repurchase agreements and other borrowings |
|
76,797 |
|
|
|
67,786 |
|
Total Borrowings |
|
481,816 |
|
|
|
955,731 |
|
Other liabilities |
|
389,771 |
|
|
|
313,719 |
|
TOTAL LIABILITIES |
|
14,445,213 |
|
|
|
12,842,616 |
|
Preferred stock |
|
|
|
Authorized and unissued shares - 2,000,000 |
|
— |
|
|
|
— |
|
Common stock, $1.667 par: Authorized shares - 150,000,000 |
|
|
|
Issued and outstanding shares 72,683,985 in 2021 and 72,667,541 in
2020 |
|
121,164 |
|
|
|
121,132 |
|
Capital surplus |
|
1,050,948 |
|
|
|
1,046,642 |
|
Retained earnings |
|
716,605 |
|
|
|
557,889 |
|
Common stock issued to deferred compensation trust, at cost |
|
|
|
911,458 shares in 2021 and 873,486 shares in 2020 |
|
(18,257 |
) |
|
|
(16,969 |
) |
Deferred compensation trust |
|
18,257 |
|
|
|
16,969 |
|
Accumulated other comprehensive income (loss) |
|
10,597 |
|
|
|
41,184 |
|
TOTAL SHAREHOLDERS’
EQUITY |
|
1,899,314 |
|
|
|
1,766,847 |
|
Noncontrolling interest |
|
16,860 |
|
|
|
16,981 |
|
TOTAL EQUITY |
|
1,916,174 |
|
|
|
1,783,828 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
16,361,387 |
|
|
$ |
14,626,444 |
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Consolidated Statements of Income |
(dollars in thousands, except per share data) |
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
INTEREST INCOME: |
|
|
|
|
|
|
|
Loans, including fees |
$ |
95,054 |
|
|
$ |
104,182 |
|
|
$ |
395,322 |
|
|
$ |
409,252 |
|
Investment securities |
|
10,484 |
|
|
|
7,499 |
|
|
|
31,472 |
|
|
|
33,052 |
|
Interest-bearing deposits in financial institutions and federal
funds sold |
|
1,215 |
|
|
|
435 |
|
|
|
3,432 |
|
|
|
2,603 |
|
Mortgage loans held for sale |
|
2,750 |
|
|
|
3,867 |
|
|
|
13,227 |
|
|
|
15,252 |
|
Total interest income |
|
109,503 |
|
|
|
115,983 |
|
|
|
443,453 |
|
|
|
460,159 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Deposits |
|
5,389 |
|
|
|
10,762 |
|
|
|
27,109 |
|
|
|
57,862 |
|
Advances from the FHLB |
|
206 |
|
|
|
1,404 |
|
|
|
1,224 |
|
|
|
8,393 |
|
Subordinated debt, net |
|
2,962 |
|
|
|
2,962 |
|
|
|
11,816 |
|
|
|
11,847 |
|
Repurchase agreements and other borrowings |
|
154 |
|
|
|
241 |
|
|
|
935 |
|
|
|
1,913 |
|
Total interest expense |
|
8,711 |
|
|
|
15,369 |
|
|
|
41,084 |
|
|
|
80,015 |
|
Net interest income |
|
100,792 |
|
|
|
100,614 |
|
|
|
402,369 |
|
|
|
380,144 |
|
PROVISION FOR CREDIT LOSSES |
|
(1,110 |
) |
|
|
1,617 |
|
|
|
(16,774 |
) |
|
|
67,177 |
|
Net interest income after provision for
credit losses |
|
101,902 |
|
|
|
98,997 |
|
|
|
419,143 |
|
|
|
312,967 |
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
Residential mortgage banking income, net |
|
20,945 |
|
|
|
37,504 |
|
|
|
109,304 |
|
|
|
112,166 |
|
Insurance commissions and other title fees and income, net |
|
15,486 |
|
|
|
13,868 |
|
|
|
67,541 |
|
|
|
65,840 |
|
Property management income, net |
|
9,099 |
|
|
|
5,665 |
|
|
|
42,175 |
|
|
|
26,473 |
|
Real estate commission income, net |
|
3,165 |
|
|
|
3,564 |
|
|
|
13,290 |
|
|
|
11,776 |
|
Service charges on deposit accounts |
|
2,479 |
|
|
|
1,707 |
|
|
|
9,584 |
|
|
|
8,021 |
|
Credit card merchant fees, net |
|
1,412 |
|
|
|
1,377 |
|
|
|
6,042 |
|
|
|
5,170 |
|
BOLI |
|
1,904 |
|
|
|
1,990 |
|
|
|
7,265 |
|
|
|
8,285 |
|
Other income |
|
5,142 |
|
|
|
5,559 |
|
|
|
21,508 |
|
|
|
36,826 |
|
Net gain/(loss) on investment securities |
|
— |
|
|
|
— |
|
|
|
1,252 |
|
|
|
9,634 |
|
Total noninterest income |
|
59,632 |
|
|
|
71,234 |
|
|
|
277,961 |
|
|
|
284,191 |
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
64,814 |
|
|
|
61,475 |
|
|
|
245,844 |
|
|
|
235,676 |
|
Occupancy expense |
|
8,371 |
|
|
|
8,193 |
|
|
|
31,657 |
|
|
|
31,317 |
|
Furniture and equipment |
|
3,528 |
|
|
|
3,462 |
|
|
|
14,175 |
|
|
|
13,914 |
|
Amortization - intangibles |
|
2,935 |
|
|
|
2,797 |
|
|
|
11,127 |
|
|
|
11,498 |
|
Software expense |
|
4,014 |
|
|
|
4,066 |
|
|
|
16,911 |
|
|
|
14,622 |
|
Data processing |
|
3,524 |
|
|
|
2,363 |
|
|
|
13,779 |
|
|
|
10,985 |
|
Professional fees |
|
2,723 |
|
|
|
2,591 |
|
|
|
9,548 |
|
|
|
11,268 |
|
Advertising and marketing |
|
3,414 |
|
|
|
2,204 |
|
|
|
13,504 |
|
|
|
9,643 |
|
Other expenses |
|
17,144 |
|
|
|
18,781 |
|
|
|
60,727 |
|
|
|
56,902 |
|
Total noninterest expense |
|
110,467 |
|
|
|
105,932 |
|
|
|
417,272 |
|
|
|
395,825 |
|
Income before income tax expense and noncontrolling
interest |
|
51,067 |
|
|
|
64,299 |
|
|
|
279,832 |
|
|
|
201,333 |
|
Provision for income tax expense |
|
9,410 |
|
|
|
10,408 |
|
|
|
54,798 |
|
|
|
31,900 |
|
Net income |
$ |
41,657 |
|
|
$ |
53,891 |
|
|
$ |
225,034 |
|
|
$ |
169,433 |
|
Net income attributable to noncontrolling interest |
|
(1,474 |
) |
|
|
(3,809 |
) |
|
|
(9,651 |
) |
|
|
(23,898 |
) |
Net income attributable to TowneBank |
$ |
40,183 |
|
|
$ |
50,082 |
|
|
$ |
215,383 |
|
|
$ |
145,535 |
|
|
|
|
|
|
|
|
|
Per common share information |
|
|
|
|
|
|
|
Basic earnings |
$ |
0.55 |
|
|
$ |
0.69 |
|
|
$ |
2.97 |
|
|
$ |
2.01 |
|
Diluted earnings |
$ |
0.55 |
|
|
$ |
0.69 |
|
|
$ |
2.97 |
|
|
$ |
2.01 |
|
Cash dividends declared |
$ |
0.20 |
|
|
$ |
0.18 |
|
|
$ |
0.78 |
|
|
$ |
0.72 |
|
TOWNEBANK |
Consolidated Balance Sheets - Five Quarter
Trend |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
17,373 |
|
|
$ |
75,370 |
|
|
$ |
117,797 |
|
|
$ |
141,545 |
|
|
$ |
41,514 |
|
Interest-bearing deposits at FRB - Richmond |
|
3,244,484 |
|
|
|
3,155,039 |
|
|
|
2,970,490 |
|
|
|
1,936,458 |
|
|
|
1,795,241 |
|
Interest-bearing deposits in financial institutions |
|
34,779 |
|
|
|
33,506 |
|
|
|
31,971 |
|
|
|
30,031 |
|
|
|
27,532 |
|
Total Cash and Cash Equivalents |
|
3,296,636 |
|
|
|
3,263,915 |
|
|
|
3,120,258 |
|
|
|
2,108,034 |
|
|
|
1,864,287 |
|
Securities available for sale, at fair value |
|
1,806,183 |
|
|
|
1,560,402 |
|
|
|
1,454,421 |
|
|
|
1,418,006 |
|
|
|
1,368,224 |
|
Securities held to maturity |
|
154,221 |
|
|
|
14,898 |
|
|
|
15,389 |
|
|
|
15,980 |
|
|
|
16,512 |
|
Less: allowance for credit losses |
|
(94 |
) |
|
|
(94 |
) |
|
|
(97 |
) |
|
|
(97 |
) |
|
|
(97 |
) |
Securities held to maturity, net of allowance for credit
losses |
|
154,127 |
|
|
|
14,804 |
|
|
|
15,292 |
|
|
|
15,883 |
|
|
|
16,415 |
|
Other equity securities |
|
6,759 |
|
|
|
6,621 |
|
|
|
6,395 |
|
|
|
6,355 |
|
|
|
6,492 |
|
Federal Home Loan Bank stock |
|
13,146 |
|
|
|
13,146 |
|
|
|
16,909 |
|
|
|
16,909 |
|
|
|
30,135 |
|
Total Securities |
|
1,980,215 |
|
|
|
1,594,973 |
|
|
|
1,493,017 |
|
|
|
1,457,153 |
|
|
|
1,421,266 |
|
Mortgage loans held for sale |
|
358,303 |
|
|
|
431,846 |
|
|
|
554,447 |
|
|
|
582,905 |
|
|
|
540,798 |
|
Loans, net of unearned income and deferred costs |
|
9,506,252 |
|
|
|
9,297,565 |
|
|
|
9,423,578 |
|
|
|
9,734,583 |
|
|
|
9,629,068 |
|
Less: allowance for credit losses |
|
(106,059 |
) |
|
|
(107,177 |
) |
|
|
(108,130 |
) |
|
|
(116,077 |
) |
|
|
(120,157 |
) |
Net Loans |
|
9,400,193 |
|
|
|
9,190,388 |
|
|
|
9,315,448 |
|
|
|
9,618,506 |
|
|
|
9,508,911 |
|
Premises and equipment, net |
|
270,772 |
|
|
|
270,810 |
|
|
|
265,644 |
|
|
|
261,831 |
|
|
|
260,242 |
|
Goodwill |
|
457,187 |
|
|
|
457,187 |
|
|
|
452,328 |
|
|
|
452,328 |
|
|
|
452,328 |
|
Other intangible assets, net |
|
50,379 |
|
|
|
50,839 |
|
|
|
42,271 |
|
|
|
44,808 |
|
|
|
45,533 |
|
BOLI |
|
251,805 |
|
|
|
249,862 |
|
|
|
249,213 |
|
|
|
247,655 |
|
|
|
246,109 |
|
Other assets |
|
295,897 |
|
|
|
301,552 |
|
|
|
311,209 |
|
|
|
306,176 |
|
|
|
286,970 |
|
TOTAL ASSETS |
$ |
16,361,387 |
|
|
$ |
15,811,372 |
|
|
$ |
15,803,835 |
|
|
$ |
15,079,396 |
|
|
$ |
14,626,444 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
5,546,665 |
|
|
$ |
5,394,952 |
|
|
$ |
5,243,074 |
|
|
$ |
4,840,678 |
|
|
$ |
4,374,566 |
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
6,139,714 |
|
|
|
5,681,181 |
|
|
|
5,373,146 |
|
|
|
5,062,461 |
|
|
|
4,819,604 |
|
Savings |
|
371,356 |
|
|
|
366,165 |
|
|
|
349,552 |
|
|
|
342,554 |
|
|
|
330,091 |
|
Certificates of deposit |
|
1,515,891 |
|
|
|
1,571,752 |
|
|
|
1,998,828 |
|
|
|
1,893,951 |
|
|
|
2,048,905 |
|
Total Deposits |
|
13,573,626 |
|
|
|
13,014,050 |
|
|
|
12,964,600 |
|
|
|
12,139,644 |
|
|
|
11,573,166 |
|
Advances from the FHLB |
|
155,367 |
|
|
|
155,537 |
|
|
|
255,706 |
|
|
|
255,872 |
|
|
|
456,038 |
|
Subordinated debt, net |
|
249,652 |
|
|
|
249,503 |
|
|
|
249,353 |
|
|
|
249,204 |
|
|
|
249,055 |
|
FRB PPP Lending Facility |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
183,164 |
|
|
|
182,852 |
|
Repurchase agreements and other borrowings |
|
76,797 |
|
|
|
82,413 |
|
|
|
85,042 |
|
|
|
68,509 |
|
|
|
67,786 |
|
Total Borrowings |
|
481,816 |
|
|
|
487,453 |
|
|
|
590,101 |
|
|
|
756,749 |
|
|
|
955,731 |
|
Other liabilities |
|
389,771 |
|
|
|
409,435 |
|
|
|
379,278 |
|
|
|
366,697 |
|
|
|
313,719 |
|
TOTAL LIABILITIES |
|
14,445,213 |
|
|
|
13,910,938 |
|
|
|
13,933,979 |
|
|
|
13,263,090 |
|
|
|
12,842,616 |
|
Preferred stock |
|
|
|
|
|
|
|
|
|
Authorized shares - 2,000,000 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, $1.667 par value |
|
121,164 |
|
|
|
121,163 |
|
|
|
121,144 |
|
|
|
121,108 |
|
|
|
121,132 |
|
Capital surplus |
|
1,050,948 |
|
|
|
1,049,367 |
|
|
|
1,048,332 |
|
|
|
1,047,312 |
|
|
|
1,046,642 |
|
Retained earnings |
|
716,605 |
|
|
|
690,960 |
|
|
|
655,095 |
|
|
|
613,826 |
|
|
|
557,889 |
|
Common stock issued to deferred compensation trust, at cost |
|
(18,257 |
) |
|
|
(18,076 |
) |
|
|
(18,076 |
) |
|
|
(17,063 |
) |
|
|
(16,969 |
) |
Deferred compensation trust |
|
18,257 |
|
|
|
18,076 |
|
|
|
18,076 |
|
|
|
17,063 |
|
|
|
16,969 |
|
Accumulated other comprehensive income (loss) |
|
10,597 |
|
|
|
21,597 |
|
|
|
29,273 |
|
|
|
17,969 |
|
|
|
41,184 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
1,899,314 |
|
|
|
1,883,087 |
|
|
|
1,853,844 |
|
|
|
1,800,215 |
|
|
|
1,766,847 |
|
Noncontrolling interest |
|
16,860 |
|
|
|
17,347 |
|
|
|
16,012 |
|
|
|
16,091 |
|
|
|
16,981 |
|
TOTAL EQUITY |
|
1,916,174 |
|
|
|
1,900,434 |
|
|
|
1,869,856 |
|
|
|
1,816,306 |
|
|
|
1,783,828 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
16,361,387 |
|
|
$ |
15,811,372 |
|
|
$ |
15,803,835 |
|
|
$ |
15,079,396 |
|
|
$ |
14,626,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
Consolidated Statements of Income - Five Quarter Trend
(unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
95,054 |
|
|
$ |
98,258 |
|
|
$ |
100,614 |
|
|
$ |
101,396 |
|
|
$ |
104,182 |
|
Investment securities |
|
10,484 |
|
|
|
7,000 |
|
|
|
6,871 |
|
|
|
7,117 |
|
|
|
7,499 |
|
Interest-bearing deposits in financial institutions and
federal funds sold |
|
1,215 |
|
|
|
1,182 |
|
|
|
619 |
|
|
|
416 |
|
|
|
435 |
|
Mortgage loans held for sale |
|
2,750 |
|
|
|
3,405 |
|
|
|
3,711 |
|
|
|
3,361 |
|
|
|
3,867 |
|
Total interest income |
|
109,503 |
|
|
|
109,845 |
|
|
|
111,815 |
|
|
|
112,290 |
|
|
|
115,983 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
Deposits |
|
5,389 |
|
|
|
6,028 |
|
|
|
7,144 |
|
|
|
8,548 |
|
|
|
10,762 |
|
Advances from the FHLB |
|
206 |
|
|
|
247 |
|
|
|
274 |
|
|
|
497 |
|
|
|
1,404 |
|
Subordinated debt |
|
2,962 |
|
|
|
2,962 |
|
|
|
2,962 |
|
|
|
2,930 |
|
|
|
2,962 |
|
Repurchase agreements and other borrowings |
|
154 |
|
|
|
165 |
|
|
|
291 |
|
|
|
325 |
|
|
|
241 |
|
Total interest expense |
|
8,711 |
|
|
|
9,402 |
|
|
|
10,671 |
|
|
|
12,300 |
|
|
|
15,369 |
|
Net interest income |
|
100,792 |
|
|
|
100,443 |
|
|
|
101,144 |
|
|
|
99,990 |
|
|
|
100,614 |
|
PROVISION FOR CREDIT LOSSES |
|
(1,110 |
) |
|
|
(1,582 |
) |
|
|
(10,055 |
) |
|
|
(4,027 |
) |
|
|
1,617 |
|
Net interest income after provision for credit
losses |
|
101,902 |
|
|
|
102,025 |
|
|
|
111,199 |
|
|
|
104,017 |
|
|
|
98,997 |
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
Residential mortgage banking income, net |
|
20,945 |
|
|
|
25,422 |
|
|
|
25,524 |
|
|
|
37,412 |
|
|
|
37,504 |
|
Insurance commissions and other title fees and income, net |
|
15,486 |
|
|
|
17,398 |
|
|
|
18,331 |
|
|
|
16,325 |
|
|
|
13,868 |
|
Property management income, net |
|
9,099 |
|
|
|
10,502 |
|
|
|
7,091 |
|
|
|
15,483 |
|
|
|
5,665 |
|
Real estate commission income, net |
|
3,165 |
|
|
|
3,781 |
|
|
|
3,893 |
|
|
|
2,451 |
|
|
|
3,564 |
|
Service charges on deposit accounts |
|
2,479 |
|
|
|
2,524 |
|
|
|
2,391 |
|
|
|
2,190 |
|
|
|
1,707 |
|
Credit card merchant fees, net |
|
1,412 |
|
|
|
1,660 |
|
|
|
1,667 |
|
|
|
1,302 |
|
|
|
1,377 |
|
BOLI |
|
1,904 |
|
|
|
2,301 |
|
|
|
1,541 |
|
|
|
1,519 |
|
|
|
1,990 |
|
Other income |
|
5,142 |
|
|
|
6,045 |
|
|
|
5,487 |
|
|
|
4,837 |
|
|
|
5,559 |
|
Net gain/(loss) on investment securities |
|
— |
|
|
|
— |
|
|
|
252 |
|
|
|
1,000 |
|
|
|
— |
|
Total noninterest income |
|
59,632 |
|
|
|
69,633 |
|
|
|
66,177 |
|
|
|
82,519 |
|
|
|
71,234 |
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
64,814 |
|
|
|
61,230 |
|
|
|
61,365 |
|
|
|
58,435 |
|
|
|
61,475 |
|
Occupancy expense |
|
8,371 |
|
|
|
7,656 |
|
|
|
7,559 |
|
|
|
8,072 |
|
|
|
8,193 |
|
Furniture and equipment |
|
3,528 |
|
|
|
3,513 |
|
|
|
3,622 |
|
|
|
3,512 |
|
|
|
3,462 |
|
Amortization - intangibles |
|
2,935 |
|
|
|
2,750 |
|
|
|
2,719 |
|
|
|
2,723 |
|
|
|
2,797 |
|
Software expense |
|
4,014 |
|
|
|
4,209 |
|
|
|
4,494 |
|
|
|
4,194 |
|
|
|
4,066 |
|
Data processing |
|
3,524 |
|
|
|
3,603 |
|
|
|
3,414 |
|
|
|
3,239 |
|
|
|
2,363 |
|
Professional fees |
|
2,723 |
|
|
|
2,227 |
|
|
|
2,259 |
|
|
|
2,339 |
|
|
|
2,591 |
|
Advertising and marketing |
|
3,414 |
|
|
|
3,865 |
|
|
|
3,257 |
|
|
|
2,968 |
|
|
|
2,204 |
|
Other expenses |
|
17,144 |
|
|
|
15,033 |
|
|
|
16,705 |
|
|
|
11,844 |
|
|
|
18,781 |
|
Total noninterest expense |
|
110,467 |
|
|
|
104,086 |
|
|
|
105,394 |
|
|
|
97,326 |
|
|
|
105,932 |
|
Income before income tax expense and noncontrolling
interest |
|
51,067 |
|
|
|
67,572 |
|
|
|
71,982 |
|
|
|
89,210 |
|
|
|
64,299 |
|
Provision for income tax expense |
|
9,410 |
|
|
|
14,829 |
|
|
|
13,980 |
|
|
|
16,579 |
|
|
|
10,408 |
|
Net income |
|
41,657 |
|
|
|
52,743 |
|
|
|
58,002 |
|
|
|
72,631 |
|
|
|
53,891 |
|
Net income attributable to noncontrolling interest |
|
(1,474 |
) |
|
|
(2,343 |
) |
|
|
(2,199 |
) |
|
|
(3,636 |
) |
|
|
(3,809 |
) |
Net income attributable to TowneBank |
$ |
40,183 |
|
|
$ |
50,400 |
|
|
$ |
55,803 |
|
|
$ |
68,995 |
|
|
$ |
50,082 |
|
Per common share information |
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.55 |
|
|
$ |
0.70 |
|
|
$ |
0.77 |
|
|
$ |
0.95 |
|
|
$ |
0.69 |
|
Diluted earnings (1) |
$ |
0.55 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.95 |
|
|
$ |
0.69 |
|
Basic weighted average shares outstanding |
|
72,525,504 |
|
|
|
72,506,877 |
|
|
|
72,468,094 |
|
|
|
72,414,953 |
|
|
|
72,357,177 |
|
Diluted weighted average shares outstanding |
|
72,624,610 |
|
|
|
72,591,281 |
|
|
|
72,560,234 |
|
|
|
72,517,008 |
|
|
|
72,455,096 |
|
Cash dividends declared |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
(1) The quarterly diluted EPS do not sum to the
total year diluted EPS due to rounding.
TOWNEBANK |
Banking Segment Financial Information |
(dollars in thousands) |
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
Increase/(Decrease) |
|
December 31, |
|
September 30, 2021 |
|
December 31, |
|
2021 over 2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
98,345 |
|
|
$ |
97,412 |
|
|
$ |
97,668 |
|
|
$ |
391,751 |
|
|
$ |
367,353 |
|
|
$ |
24,398 |
|
|
6.64 |
% |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
2,479 |
|
|
|
1,707 |
|
|
|
2,524 |
|
|
|
9,584 |
|
|
|
8,021 |
|
|
|
1,563 |
|
|
19.49 |
% |
Credit card merchant fees |
|
1,412 |
|
|
|
1,377 |
|
|
|
1,660 |
|
|
|
6,042 |
|
|
|
5,169 |
|
|
|
873 |
|
|
16.89 |
% |
Other income |
|
4,876 |
|
|
|
5,983 |
|
|
|
6,334 |
|
|
|
21,584 |
|
|
|
21,809 |
|
|
|
(225 |
) |
|
(1.03 |
)% |
Subtotal |
|
8,767 |
|
|
|
9,067 |
|
|
|
10,518 |
|
|
|
37,210 |
|
|
|
34,999 |
|
|
|
2,211 |
|
|
6.32 |
% |
Gain (loss) on investment securities |
|
— |
|
|
|
|
|
— |
|
|
|
1,252 |
|
|
|
9,634 |
|
|
|
(8,382 |
) |
|
n/m |
|
Total noninterest income |
|
8,767 |
|
|
|
9,067 |
|
|
|
10,518 |
|
|
|
38,462 |
|
|
|
44,633 |
|
|
|
(6,171 |
) |
|
(13.83 |
)% |
Total revenue |
|
107,112 |
|
|
|
106,479 |
|
|
|
108,186 |
|
|
|
430,213 |
|
|
|
411,986 |
|
|
|
18,227 |
|
|
4.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
(1,199 |
) |
|
|
1,628 |
|
|
|
(1,728 |
) |
|
|
(15,859 |
) |
|
|
65,799 |
|
|
|
(81,658 |
) |
|
(124.10 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
37,678 |
|
|
|
37,358 |
|
|
|
34,791 |
|
|
|
140,105 |
|
|
|
142,328 |
|
|
|
(2,223 |
) |
|
(1.56 |
)% |
Occupancy expense |
|
5,541 |
|
|
|
5,681 |
|
|
|
5,098 |
|
|
|
21,198 |
|
|
|
21,237 |
|
|
|
(39 |
) |
|
(0.18 |
)% |
Furniture and equipment |
|
2,570 |
|
|
|
2,625 |
|
|
|
2,602 |
|
|
|
10,657 |
|
|
|
10,425 |
|
|
|
232 |
|
|
2.23 |
% |
Amortization of intangible assets |
|
812 |
|
|
|
1,013 |
|
|
|
862 |
|
|
|
3,549 |
|
|
|
4,354 |
|
|
|
(805 |
) |
|
(18.49 |
)% |
Other expenses |
|
19,484 |
|
|
|
19,892 |
|
|
|
16,580 |
|
|
|
68,504 |
|
|
|
65,107 |
|
|
|
3,397 |
|
|
5.22 |
% |
Total expenses |
|
66,085 |
|
|
|
66,569 |
|
|
|
59,933 |
|
|
|
244,013 |
|
|
|
243,451 |
|
|
|
562 |
|
|
0.23 |
% |
Income before income tax, corporate allocation and noncontrolling
interest |
|
42,226 |
|
|
|
38,282 |
|
|
|
49,981 |
|
|
|
202,059 |
|
|
|
102,736 |
|
|
|
99,323 |
|
|
96.68 |
% |
Corporate allocation |
|
1,260 |
|
|
|
643 |
|
|
|
1,241 |
|
|
|
5,041 |
|
|
|
2,534 |
|
|
|
2,507 |
|
|
98.93 |
% |
Income before income tax provision and noncontrolling interest |
|
43,486 |
|
|
|
38,925 |
|
|
|
51,222 |
|
|
|
207,100 |
|
|
|
105,270 |
|
|
|
101,830 |
|
|
96.73 |
% |
Provision for income tax expense |
|
7,123 |
|
|
|
5,163 |
|
|
|
10,225 |
|
|
|
37,584 |
|
|
|
14,467 |
|
|
|
23,117 |
|
|
159.79 |
% |
Net income |
|
36,363 |
|
|
|
33,762 |
|
|
|
40,997 |
|
|
|
169,516 |
|
|
|
90,803 |
|
|
|
78,713 |
|
|
86.69 |
% |
Noncontrolling interest |
|
(3 |
) |
|
|
4 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
6 |
|
|
|
(10 |
) |
|
n/m |
|
Net income attributable to TowneBank |
$ |
36,360 |
|
|
$ |
33,766 |
|
|
$ |
40,999 |
|
|
$ |
169,512 |
|
|
$ |
90,809 |
|
|
$ |
78,703 |
|
|
86.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP) |
|
60.94 |
% |
|
|
61.57 |
% |
|
|
54.60 |
% |
|
|
56.06 |
% |
|
|
59.42 |
% |
|
|
|
|
TOWNEBANK |
Realty Segment Financial Information |
(dollars in thousands) |
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
Increase/(Decrease) |
|
December 31, |
|
September 30, |
|
December 31, |
|
2021 over 2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage brokerage
income, net |
$ |
22,257 |
|
|
$ |
38,040 |
|
|
$ |
26,637 |
|
|
$ |
113,155 |
|
|
$ |
114,589 |
|
|
$ |
(1,434 |
) |
|
(1.25 |
)% |
Real estate brokerage income, net |
|
3,165 |
|
|
|
3,564 |
|
|
|
3,781 |
|
|
|
13,290 |
|
|
|
11,776 |
|
|
|
1,514 |
|
|
12.86 |
% |
Title insurance and settlement fees |
|
610 |
|
|
|
669 |
|
|
|
706 |
|
|
|
2,527 |
|
|
|
2,397 |
|
|
|
130 |
|
|
5.42 |
% |
Property management fees, net |
|
9,099 |
|
|
|
5,665 |
|
|
|
10,502 |
|
|
|
42,175 |
|
|
|
26,473 |
|
|
|
15,702 |
|
|
59.31 |
% |
Income from unconsolidated
subsidiary |
|
113 |
|
|
|
398 |
|
|
|
269 |
|
|
|
1,077 |
|
|
|
1,336 |
|
|
|
(259 |
) |
|
(19.39 |
)% |
Net interest and other income |
|
3,010 |
|
|
|
3,627 |
|
|
|
3,154 |
|
|
|
12,232 |
|
|
|
13,889 |
|
|
|
(1,657 |
) |
|
(11.93 |
)% |
Total revenue |
|
38,254 |
|
|
|
51,963 |
|
|
|
45,049 |
|
|
|
184,456 |
|
|
|
170,460 |
|
|
|
13,996 |
|
|
8.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
89 |
|
|
|
(11 |
) |
|
|
146 |
|
|
|
(915 |
) |
|
|
1,378 |
|
|
$ |
(2,293 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
17,682 |
|
|
$ |
16,168 |
|
|
$ |
17,375 |
|
|
$ |
67,922 |
|
|
$ |
58,263 |
|
|
$ |
9,659 |
|
|
16.58 |
% |
Occupancy expense |
|
1,957 |
|
|
|
1,869 |
|
|
|
1,926 |
|
|
|
7,689 |
|
|
|
7,465 |
|
|
|
224 |
|
|
3.00 |
% |
Furniture and equipment |
|
727 |
|
|
|
614 |
|
|
|
693 |
|
|
|
2,661 |
|
|
|
2,622 |
|
|
|
39 |
|
|
1.49 |
% |
Amortization of intangible assets |
|
931 |
|
|
|
658 |
|
|
|
702 |
|
|
|
2,813 |
|
|
|
2,630 |
|
|
|
183 |
|
|
6.96 |
% |
Other expenses |
|
9,805 |
|
|
|
8,779 |
|
|
|
11,103 |
|
|
|
40,579 |
|
|
|
33,143 |
|
|
|
7,436 |
|
|
22.44 |
% |
Total expenses |
|
31,102 |
|
|
|
28,088 |
|
|
|
31,799 |
|
|
|
121,664 |
|
|
|
104,123 |
|
|
|
17,541 |
|
|
16.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax, corporate allocation, and
noncontrolling interest |
|
7,063 |
|
|
|
23,886 |
|
|
|
13,104 |
|
|
|
63,707 |
|
|
|
64,959 |
|
|
|
(1,252 |
) |
|
(1.93 |
)% |
Corporate allocation |
|
(1,000 |
) |
|
|
(403 |
) |
|
|
(1,000 |
) |
|
|
(4,000 |
) |
|
|
(1,522 |
) |
|
|
(2,478 |
) |
|
162.81 |
% |
Income (loss) before income tax provision and noncontrolling
interest |
|
6,063 |
|
|
|
23,483 |
|
|
|
12,104 |
|
|
|
59,707 |
|
|
|
63,437 |
|
|
|
(3,730 |
) |
|
(5.88 |
)% |
Provision for income tax |
|
1,894 |
|
|
|
4,421 |
|
|
|
3,546 |
|
|
|
13,911 |
|
|
|
12,035 |
|
|
|
1,876 |
|
|
15.59 |
% |
Net income (loss) |
|
4,169 |
|
|
|
19,062 |
|
|
|
8,558 |
|
|
|
45,796 |
|
|
|
51,402 |
|
|
|
(5,606 |
) |
|
(10.91 |
)% |
Noncontrolling interest |
|
(1,471 |
) |
|
|
(3,813 |
) |
|
|
(2,345 |
) |
|
|
(9,647 |
) |
|
|
(11,809 |
) |
|
|
2,162 |
|
|
(18.31 |
)% |
Net income (loss) attributable to TowneBank |
$ |
2,698 |
|
|
$ |
15,249 |
|
|
$ |
6,213 |
|
|
$ |
36,149 |
|
|
$ |
39,593 |
|
|
$ |
(3,444 |
) |
|
(8.70 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP) |
|
78.87 |
% |
|
|
52.79 |
% |
|
|
69.03 |
% |
|
|
64.43 |
% |
|
|
59.54 |
% |
|
|
|
|
TOWNEBANK |
Insurance Segment Financial Information |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
Increase/(Decrease) |
|
December 31, |
|
September 30, |
|
December 31, |
|
2021 over 2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Amount |
|
Percent |
Commission and fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and casualty |
$ |
13,135 |
|
|
$ |
11,942 |
|
|
$ |
15,338 |
|
|
$ |
57,603 |
|
|
$ |
52,726 |
|
|
$ |
4,877 |
|
|
9.25 |
% |
Employee benefits |
|
3,682 |
|
|
|
3,725 |
|
|
|
3,820 |
|
|
|
14,817 |
|
|
|
15,259 |
|
|
|
(442 |
) |
|
(2.90 |
)% |
Travel insurance (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,526 |
|
|
|
(3,526 |
) |
|
(100.00 |
)% |
Specialized benefit services |
|
172 |
|
|
|
175 |
|
|
|
164 |
|
|
|
666 |
|
|
|
664 |
|
|
|
2 |
|
|
0.30 |
% |
Total commissions and fees |
|
16,989 |
|
|
|
15,842 |
|
|
|
19,322 |
|
|
|
73,086 |
|
|
|
72,175 |
|
|
|
911 |
|
|
1.26 |
% |
Contingency and bonus revenue |
|
2,231 |
|
|
|
1,087 |
|
|
|
1,664 |
|
|
|
8,977 |
|
|
|
6,230 |
|
|
|
2,747 |
|
|
44.09 |
% |
Other income (1) |
|
40 |
|
|
|
69 |
|
|
|
40 |
|
|
|
196 |
|
|
|
17,976 |
|
|
|
(17,780 |
) |
|
(98.91 |
)% |
Total revenue |
|
19,260 |
|
|
|
16,998 |
|
|
|
21,026 |
|
|
|
82,259 |
|
|
|
96,381 |
|
|
|
(14,122 |
) |
|
(14.65 |
)% |
Employee commission expense |
|
4,202 |
|
|
|
3,592 |
|
|
|
4,185 |
|
|
|
16,598 |
|
|
|
14,492 |
|
|
|
2,106 |
|
|
14.53 |
% |
Revenue, net of commission expense |
|
15,058 |
|
|
|
13,406 |
|
|
|
16,841 |
|
|
|
65,661 |
|
|
|
81,889 |
|
|
|
(16,228 |
) |
|
(19.82 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
9,454 |
|
|
$ |
7,949 |
|
|
$ |
9,064 |
|
|
$ |
37,817 |
|
|
$ |
35,085 |
|
|
$ |
2,732 |
|
|
7.79 |
% |
Occupancy expense |
|
873 |
|
|
|
643 |
|
|
|
632 |
|
|
|
2,770 |
|
|
|
2,615 |
|
|
|
155 |
|
|
5.93 |
% |
Furniture and equipment |
|
231 |
|
|
|
223 |
|
|
|
218 |
|
|
|
857 |
|
|
|
867 |
|
|
|
(10 |
) |
|
(1.15 |
)% |
Amortization of intangible assets |
|
1,192 |
|
|
|
1,126 |
|
|
|
1,186 |
|
|
|
4,765 |
|
|
|
4,514 |
|
|
|
251 |
|
|
5.56 |
% |
Other expenses |
|
1,530 |
|
|
|
1,334 |
|
|
|
1,254 |
|
|
|
5,386 |
|
|
|
5,170 |
|
|
|
216 |
|
|
4.18 |
% |
Total operating expenses |
|
13,280 |
|
|
|
11,275 |
|
|
|
12,354 |
|
|
|
51,595 |
|
|
|
48,251 |
|
|
|
3,344 |
|
|
6.93 |
% |
Income before income tax and noncontrolling interest |
|
1,778 |
|
|
|
2,131 |
|
|
|
4,487 |
|
|
|
14,066 |
|
|
|
33,638 |
|
|
|
(19,572 |
) |
|
(58.18 |
)% |
Corporate allocation |
|
(260 |
) |
|
|
(240 |
) |
|
|
(241 |
) |
|
|
(1,041 |
) |
|
|
(1,012 |
) |
|
|
(29 |
) |
|
2.87 |
% |
Income before income tax provision and noncontrolling interest |
|
1,518 |
|
|
|
1,891 |
|
|
|
4,246 |
|
|
|
13,025 |
|
|
|
32,626 |
|
|
|
(19,601 |
) |
|
(60.08 |
)% |
Provision for income tax expense |
|
393 |
|
|
|
824 |
|
|
|
1,058 |
|
|
|
3,303 |
|
|
|
5,398 |
|
|
|
(2,095 |
) |
|
(38.81 |
)% |
Net income |
|
1,125 |
|
|
|
1,067 |
|
|
|
3,188 |
|
|
|
9,722 |
|
|
|
27,228 |
|
|
|
(17,506 |
) |
|
(64.29 |
)% |
Noncontrolling interest (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,095 |
) |
|
|
12,095 |
|
|
(100.00 |
)% |
Net income attributable to TowneBank |
$ |
1,125 |
|
|
$ |
1,067 |
|
|
$ |
3,188 |
|
|
$ |
9,722 |
|
|
$ |
15,133 |
|
|
$ |
(5,411 |
) |
|
(35.76 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
393 |
|
|
|
824 |
|
|
|
1,058 |
|
|
|
3,303 |
|
|
|
5,398 |
|
|
|
(2,095 |
) |
|
(38.81 |
)% |
Depreciation, amortization and interest expense |
|
1,342 |
|
|
|
1,274 |
|
|
|
1,330 |
|
|
|
5,341 |
|
|
|
5,151 |
|
|
|
190 |
|
|
3.69 |
% |
EBITDA (non-GAAP) |
$ |
2,860 |
|
|
$ |
3,165 |
|
|
$ |
5,576 |
|
|
$ |
18,366 |
|
|
$ |
25,682 |
|
|
$ |
(7,316 |
) |
|
(28.49 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP) |
|
80.28 |
% |
|
|
75.70 |
% |
|
|
66.31 |
% |
|
|
71.32 |
% |
|
|
68.06 |
% |
|
|
|
|
(1) In third quarter 2020, we sold Red Sky Insurance, our travel
insurance joint venture. We recorded a gross gain on sale in other
income of $17,626. Our re-tax net gain, after distributions to
noncontrolling interest was $6,521. |
TOWNEBANK |
Reconciliation of Non-GAAP Financial
Measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.99 |
% |
|
|
1.27 |
% |
|
|
1.35 |
% |
|
|
1.40 |
% |
|
|
1.03 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
0.09 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.10 |
% |
Return on average tangible assets (non-GAAP) |
|
1.08 |
% |
|
|
1.37 |
% |
|
|
1.46 |
% |
|
|
1.51 |
% |
|
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
8.38 |
% |
|
|
10.59 |
% |
|
|
11.26 |
% |
|
|
11.61 |
% |
|
|
8.46 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
3.70 |
% |
|
|
4.50 |
% |
|
|
5.02 |
% |
|
|
4.94 |
% |
|
|
4.16 |
% |
Return on average tangible equity (non-GAAP) |
|
12.08 |
% |
|
|
15.09 |
% |
|
|
16.28 |
% |
|
|
16.55 |
% |
|
|
12.62 |
% |
|
|
|
|
|
|
|
|
|
|
Return on average common equity (GAAP) |
|
8.45 |
% |
|
|
10.68 |
% |
|
|
11.36 |
% |
|
|
11.70 |
% |
|
|
8.52 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
3.77 |
% |
|
|
4.59 |
% |
|
|
5.12 |
% |
|
|
5.05 |
% |
|
|
4.24 |
% |
Return on average tangible common equity (non-GAAP) |
|
12.22 |
% |
|
|
15.27 |
% |
|
|
16.48 |
% |
|
|
16.75 |
% |
|
|
12.76 |
% |
|
|
|
|
|
|
|
|
|
|
Book value (GAAP) |
$ |
26.13 |
|
|
$ |
25.91 |
|
|
$ |
24.31 |
|
|
$ |
26.13 |
|
|
$ |
24.31 |
|
Impact of excluding average goodwill and other intangibles and
amortization |
|
(6.98 |
) |
|
|
(6.99 |
) |
|
|
(6.85 |
) |
|
|
(6.98 |
) |
|
|
(6.85 |
) |
Tangible book value (non-GAAP) |
$ |
19.15 |
|
|
$ |
18.92 |
|
|
$ |
17.46 |
|
|
$ |
19.15 |
|
|
|
17.46 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
68.86 |
% |
|
|
61.20 |
% |
|
|
61.64 |
% |
|
|
61.33 |
% |
|
|
59.58 |
% |
Impact of excluding gain/(loss) on investments and amortization
expense |
|
(1.83 |
)% |
|
|
(1.62 |
)% |
|
|
(1.62 |
)% |
|
|
(1.52) |
)% |
|
|
0.75 |
% |
Efficiency ratio (non-GAAP) |
|
67.03 |
% |
|
|
59.58 |
% |
|
|
60.02 |
% |
|
|
59.81 |
% |
|
|
60.33 |
% |
|
|
|
|
|
|
|
|
|
|
Average assets (GAAP) |
$ |
16,075,509 |
|
|
$ |
15,706,998 |
|
|
$ |
14,722,385 |
|
|
$ |
15,384,662 |
|
|
$ |
14,172,206 |
|
Less: average goodwill and intangible assets |
|
506,867 |
|
|
|
506,231 |
|
|
|
491,453 |
|
|
|
501,689 |
|
|
|
495,707 |
|
Average tangible assets (non-GAAP) |
$ |
15,568,642 |
|
|
$ |
15,200,767 |
|
|
$ |
14,230,932 |
|
|
$ |
14,882,973 |
|
|
$ |
13,676,499 |
|
|
|
|
|
|
|
|
|
|
|
Average equity (GAAP) |
$ |
1,902,474 |
|
|
$ |
1,888,451 |
|
|
$ |
1,768,906 |
|
|
$ |
1,855,948 |
|
|
$ |
1,721,059 |
|
Less: average goodwill and intangible assets |
|
506,867 |
|
|
|
506,231 |
|
|
|
491,453 |
|
|
|
501,689 |
|
|
|
495,707 |
|
Average tangible equity (non-GAAP) |
$ |
1,395,607 |
|
|
$ |
1,382,220 |
|
|
$ |
1,277,453 |
|
|
$ |
1,354,259 |
|
|
$ |
1,225,352 |
|
|
|
|
|
|
|
|
|
|
|
Average common equity (GAAP) |
$ |
1,886,279 |
|
|
$ |
1,871,820 |
|
|
$ |
1,753,596 |
|
|
$ |
1,840,261 |
|
|
$ |
1,707,635 |
|
Less: average goodwill and intangible assets |
|
506,867 |
|
|
|
506,231 |
|
|
|
491,453 |
|
|
|
501,689 |
|
|
|
495,707 |
|
Average tangible common equity (non-GAAP) |
$ |
1,379,412 |
|
|
$ |
1,365,589 |
|
|
$ |
1,262,143 |
|
|
$ |
1,338,572 |
|
|
$ |
1,211,928 |
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
40,183 |
|
|
$ |
50,400 |
|
|
$ |
50,082 |
|
|
$ |
215,383 |
|
|
$ |
145,535 |
|
Amortization of intangibles, net of tax |
|
2,318 |
|
|
|
2,172 |
|
|
|
2,210 |
|
|
|
8,790 |
|
|
|
9,086 |
|
Tangible net income (non-GAAP) |
$ |
42,501 |
|
|
$ |
52,572 |
|
|
$ |
52,292 |
|
|
$ |
224,173 |
|
|
$ |
154,621 |
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
40,183 |
|
|
$ |
50,400 |
|
|
$ |
50,082 |
|
|
$ |
215,383 |
|
|
$ |
145,535 |
|
Provision for credit losses |
|
(1,110 |
) |
|
|
(1,582 |
) |
|
|
1,617 |
|
|
|
(16,774 |
) |
|
|
67,177 |
|
Provision for income taxes |
|
9,410 |
|
|
|
14,829 |
|
|
|
10,408 |
|
|
|
54,798 |
|
|
|
31,900 |
|
(Gain)/loss on equity investment net of noncontrolling
interest |
|
— |
|
|
|
— |
|
|
$ |
— |
|
|
|
30 |
|
|
|
(17,626 |
) |
Pre-provision, pre-tax net revenues (non-GAAP) |
$ |
48,483 |
|
|
$ |
63,647 |
|
|
$ |
62,107 |
|
|
$ |
253,437 |
|
|
$ |
226,986 |
|
|
|
|
|
|
|
|
|
|
|
Total revenue (GAAP) |
$ |
160,424 |
|
|
$ |
170,076 |
|
|
$ |
171,848 |
|
|
$ |
680,331 |
|
|
$ |
664,335 |
|
Net (gain) loss on investment securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,252 |
) |
|
|
(9,634 |
) |
Net (gain) loss on equity investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
(17,626 |
) |
Total revenue for efficiency calculation (non-GAAP) |
$ |
160,424 |
|
|
$ |
170,076 |
|
|
$ |
171,848 |
|
|
$ |
679,109 |
|
|
$ |
637,075 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
110,467 |
|
|
$ |
104,086 |
|
|
$ |
105,932 |
|
|
$ |
417,272 |
|
|
$ |
395,825 |
|
Less: Amortization of intangibles |
|
2,935 |
|
|
|
2,750 |
|
|
|
2,797 |
|
|
|
11,127 |
|
|
|
11,498 |
|
Noninterest expense net of amortization (non-GAAP) |
$ |
107,532 |
|
|
$ |
101,336 |
|
|
$ |
103,135 |
|
|
$ |
406,145 |
|
|
$ |
384,327 |
|
Grafico Azioni TowneBank (NASDAQ:TOWN)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni TowneBank (NASDAQ:TOWN)
Storico
Da Mag 2023 a Mag 2024