Beneficial Bancorp, Inc. Announces Third Quarter Results and Cash Dividend to Shareholders


PHILADELPHIA, Oct. 21, 2016 (GLOBE NEWSWIRE) -- Beneficial Bancorp, Inc. (“Beneficial”) (NASDAQ:BNCL), the parent company of Beneficial Bank (the “Bank”), today announced its financial results for the three and nine months ended September 30, 2016.  Beneficial recorded net income of $10.1 million and $17.8 million, or $0.14 and $0.24 per diluted share, for the three and nine months ended September 30, 2016, respectively, compared to net income of $5.8 million and $18.1 million, or $0.07 and $0.23 per diluted share, for the three and nine months ended September 30, 2015.  Net income for nine months ended September 30, 2016 included $8.8 million of merger and restructuring charges related to the acquisition of Conestoga Bank and the Bank’s previously announced expense management reduction program.

On October 21, 2016, Beneficial Bancorp declared a cash dividend of 6 cents per share, payable on or after November 10, 2016, to common shareholders of record at the close of business on October 31, 2016.

Highlights for the three and nine months ended September 30, 2016 are as follows:

  • Net interest margin totaled 3.08% and 3.00% for the quarter and nine months ended September 30, 2016 compared to 2.82% and 2.80% for the same period in 2015, respectively.  Margin has benefited from organic loan growth, the impact of the Conestoga Bank acquisition, and continued improvement in the mix of our balance sheet.

  • For the nine months ended September 30, 2016, net interest income increased $18.5 million, or 20.0%, to $111.0 million compared to $92.5 million for the same period in 2015, primarily due to the Conestoga Bank acquisition and organic loan growth.

  • For the nine months ended September 30, 2016, our loan portfolio increased $946.5 million, or 32.2%, due primarily to the acquisition of Conestoga Bank loans of $516.3 million (17.6% growth), net organic growth of $312.7 million (10.6% growth since year-end and 14.2% annualized), and the purchase of $117.5 million of commercial real estate loans (4.0% growth).
     
  • For the three and nine months ended September 30, 2016, non-interest income included a gain of $1.8 million on the sale of investments.
     
  • Asset quality metrics continued to remain strong during the quarter with non-performing assets, excluding government-guaranteed student loans, to total assets of 0.26% as of September 30, 2016.  Net charge-offs for the three and nine months ended September 30, 2016 totaled $54 thousand, or 1 basis point of average loans, and $1.0 million, or 4 basis points of average loans, compared to net charge-offs of $118 thousand, or 2 basis points of average loans, and net recoveries of $620 thousand, or 3 basis points of average loans, in the comparable periods in the prior year.  Our allowance for loan losses totaled $44.5 million, or 1.14% of total loans, as of September 30, 2016 compared to $45.5 million, or 1.55% of total loans, as of December 31, 2015.  The decrease in the coverage ratio is primarily due to improvement in credit quality and the $516.3 million of loans at fair value acquired from Conestoga Bank.
     
  • We continue to deploy our capital from the second step conversion we completed in January 2015.  Our tangible capital to tangible assets decreased to 15.70% at September 30, 2016 compared to 21.04% at December 31, 2015.  The decrease in this ratio can be attributed to share repurchases and the impact of the acquisition of Conestoga Bank.  Tangible book value per share totaled $11.13 at September 30, 2016.
     
  • During the quarter we launched a 9-week advertising campaign with a focus on our heritage and dedication to Philadelphia, our values, and our guiding philosophy to always do what’s right.  It also introduced our refreshed tagline, “True to our name.  Since 1853.”  The campaign is featured on television, radio, outdoor, digital, transit, and social media throughout the Delaware Valley. 

Gerard Cuddy, Beneficial’s President and CEO, stated “We continued to make progress with our strategic priorities during the quarter. We organically grew our loan portfolio, improved our balance sheet mix, and maintained strong asset quality metrics.  Our focus remains on employee engagement, a superior customer experience, prudent capital management and organic growth to continue to improve Beneficial’s financial performance.”

Balance Sheet
Total assets increased $753.7 million, or 15.6%, to $5.58 billion at September 30, 2016 compared to $4.83 billion at December 31, 2015.  The increase in total assets was primarily due to the $649.7 million of assets acquired as part of the acquisition of Conestoga Bank and strong organic loan growth. 

Cash and cash equivalents decreased $47.9 million to $186.0 million at September 30, 2016 from $233.9 million at December 31, 2015.  The decrease in cash and cash equivalents was primarily driven by repurchases of our common stock, and the $105.0 million paid to acquire Conestoga Bank.

Investments decreased $228.9 million, or 16.8%, to $1.13 billion at September 30, 2016 compared to $1.36 billion at December 31, 2015, as we continued to focus on improving our balance sheet mix by reducing the percentage of our assets in cash and investments and growing our loan portfolio.  We continue to focus on maintaining a high quality investment portfolio that provides a steady stream of cash flows both in the current and in rising interest rate environments.

Loans increased $946.5 million, or 32.2%, to $3.89 billion at September 30, 2016 from $2.94 billion at December 31, 2015.  The increase in loans was primarily due to the acquisition of Conestoga Bank loans of $516.3 million, net organic growth of $312.7 million and the purchase of $117.5 million of commercial real estate loans.

Deposits increased $611.5 million, or 17.7%, to $4.06 billion at September 30, 2016 from $3.45 billion at December 31, 2015.  The $611.5 million increase in deposits during the nine months ended September 30, 2016 was primarily due to the $588.4 million of deposits acquired as part of the acquisition of Conestoga Bank.

Borrowings increased $225.0 million to $415.4 million at September 30, 2016 and are being used as a low cost funding source to replace higher cost brokered CD’s and fund organic loan growth.

Stockholders’ equity decreased $92.3 million, or 8.3%, to $1.02 billion at September 30, 2016 from $1.12 billion at December 31, 2015.  The decrease in stockholders’ equity was primarily due to the repurchase of 9,282,948 shares of common stock during the nine months ended September 30, 2016, partially offset by net income for the first nine months of 2016.   During the second quarter of 2016, Beneficial completed its first share repurchase program since completing its mutual-to-stock conversion and related stock offering in January 2015. Under the first program, Beneficial repurchased 8,291,859 shares.  On July 21, 2016, Beneficial Bancorp adopted a second stock repurchase program for up to 10% of its outstanding common stock, or 7,770,978 shares. During the third quarter, the Company purchased 882,100 shares under the second stock repurchase plan.

Net Interest Income
For the three months ended September 30, 2016, net interest income was $40.0 million, an increase of $8.9 million, or 28.4%, from the three months ended September 30, 2015. The increase in net interest income was primarily due to the impact of the Conestoga Bank acquisition as well as improvement in our balance sheet mix and related interest earning assets with growth occurring in our higher yielding loan portfolio and reductions in cash and investment levels.  The net interest margin totaled 3.08% for the three months ended September 30, 2016 as compared to 2.82% for the same period in 2015.

For the nine months ended September 30, 2016, Beneficial reported net interest income of $111.0 million, an increase of $18.5 million, or 20.0%, from the nine months ended September 30, 2015. The increase in net interest income was primarily due to the acquisition of Conestoga Bank, organic loan growth and improvement in our balance sheet mix. Our net interest margin increased to 3.00% for the nine months ended September 30, 2016 from 2.80% for the same period in 2015.

The continued low interest rate environment will put pressure on the net interest margin in future periods but we are focused on growing our loan portfolio and continuing to improve our balance sheet mix to help stabilize our net interest margin.

Non-interest Income
For the three months ended September 30, 2016, non-interest income totaled $8.2 million, an increase of $2.4 million, or 41.3%, from the three months ended September 30, 2015.  The increase was primarily due to a $1.8 million investment gain from the sale of stock that we held in a financial institution that was acquired, and a $493 thousand swap fee earned on a commercial real estate loan recorded during the third quarter of 2016.

For the nine months ended September 30, 2016, non-interest income totaled $19.6 million, an increase of $983 thousand, or 5.3%, from the nine months ended September 30, 2015. The increase during the nine months ended September 30, 2016 was primarily due to a $1.8 million investment gain from the sale of stock and a $493 thousand swap fee earned on a commercial real estate loan, partially offset by a $1.1 million gain recorded on a limited partnership investment in 2015.

Non-interest Expense
For the three months ended September 30, 2016, non-interest expense totaled $33.3 million, an increase of $5.0 million, or 17.6%, from the three months ended September 30, 2015.  The increase in non-interest expense was primarily due to a $2.0 million increase in salaries and employee benefits and an $830 thousand increase in board fees primarily due to stock based compensation associated with the shares granted under the 2016 Omnibus Incentive Plan. The increase in non-interest expense during the quarter ended September 30, 2016, can also be attributed a $529 thousand increase in professional fees primarily related to an online banking technology upgrade, a $415 thousand increase in loan expense and a $246 thousand increase in debit card reward expenses. These increases to non-interest expense were partially offset by a $694 thousand reduction of merger related expenses as final expenses were lower than estimated for professional fees, facility expenses and contract terminations, associated with the acquisition of Conestoga Bank.     

For the nine months ended September 30, 2016, non-interest expense totaled $103.6 million, an increase of $14.9 million, or 16.7%, from the nine months ended September 30, 2015. The increase in non-interest expense was primarily due to $7.2 million of merger and restructuring charges related to the acquisition of Conestoga Bank and $1.6 million related to our previously announced expense management reduction program.  In addition, salaries and employee benefits increased $3.0 million and board fees increased $873 thousand primarily due to stock based compensation associated with the shares granted under the 2016 Omnibus Incentive Plan.  The increase in non-interest expense can also be attributed to a $730 thousand increase in loan expenses, primarily due to commercial loan servicing, and a $505 thousand increase in debit card rewards expense.     

Income Taxes
For the three months ended September 30, 2016, we recorded a provision for income taxes of $4.9 million, reflecting an effective tax rate of 32.8%, compared to a provision for income taxes of $2.9 million, reflecting an effective tax rate of 32.9% for the three months ended September 30, 2015.  For the nine months ended September 30, 2016, we recorded a provision for income taxes of $9.1 million, reflecting an effective tax rate of 33.9%, compared to a provision for income taxes of $7.8 million, reflecting an effective tax rate of 30.1%, for the nine months ended September 30, 2015. The increase in income tax expense and the effective tax is due to higher pre-tax income and a lower ratio of tax exempt income compared to pre-tax income for the nine months ended September 30, 2016 as compared to the same period in 2015.

Asset Quality
Asset quality metrics remain strong as non-performing loans, excluding government guaranteed student loans, decreased to $13.2 million at September 30, 2016, compared to $14.8 million at December 31, 2015.  Our ratio of non-performing assets to total assets, excluding government guaranteed student loans, decreased to 0.26% at September 30, 2016 compared to 0.33% at December 31, 2015.

As a result of our strong asset quality metrics and low net charge-offs recorded in recent periods, we did not record a provision for loan losses during the three or nine months ended September 30, 2016. As a result of the improvement in our asset quality metrics and net recoveries received, we recorded no provision for loan losses for the three months ended September 30, 2015 and a $3.6 million negative provision for loan losses for the nine months ended September 30, 2015. Net charge-offs totaled $54 thousand during the three months ended September 30, 2016 compared to $118 thousand of net recoveries during the same period in 2015.

Our allowance for loan losses totaled $44.5 million, or 1.14% of total loans, as of September 30, 2016 compared to $44.5 million, or 1.17% of total loans, as of June 30, 2016 and $45.5 million, or 1.55% of total loans, as of December 31, 2015.  Excluding acquired loans that were recorded at fair value of $516.3 million as of the acquisition date; our loan loss reserves coverage ratio totaled 1.31% as of September 30, 2016.

Capital
Beneficial’s and the Bank’s capital position remains strong relative to current regulatory requirements. Beneficial and the Bank continue to have substantial liquidity that has been retained in cash or invested in high quality government-backed securities. As of September 30, 2016, Beneficial’s tangible capital to tangible assets totaled 15.70%. In addition, at September 30, 2016, we had the ability to borrow up to $1.9 billion combined from the Federal Home Loan Bank of Pittsburgh and the Federal Reserve Bank of Philadelphia. Beneficial’s capital ratios are considered to be well capitalized and are as follows:

         Capital in Excess
       Minimum Well of Minimum
 9/30/2016 12/31/2015 9/30/2015 Capitalized Ratio 9/30/2016
          
Tier 1 Leverage (to average assets) 16.57%  22.38%  22.30%  5.0% $622,129 
Common Equity Tier 1 Capital (to risk weighted assets) 21.93%  33.36%  37.12%  6.5%  610,037 
Tier 1 Capital (to risk weighted assets) 22.54%  34.13%  37.86%  8.0%  574,673 
Total Capital Ratio (to risk weighted assets) 23.67%  35.38%  39.12%  10.0%  540,430 

The Bank’s capital ratios are considered to be well capitalized and are as follows:

          Capital in Excess
        Minimum Well of Minimum
 9/30/2016 12/31/2015 9/30/2015  Capitalized Ratio 9/30/2016
           
Tier 1 Leverage (to average assets) 14.96%  16.86%  16.79%   5.0% $535,462 
Common Equity Tier 1 Capital (to risk weighted assets) 20.36%  25.74%  28.53%   6.5%  547,430 
Tier 1 Capital (to risk weighted assets) 20.36%  25.74%  28.53%   8.0%  488,188 
Total Capital Ratio (to risk weighted assets) 21.49%  26.99%  29.79%   10.0%  453,968 

Maintaining strong capital levels remains one of our top priorities.  Our capital levels are in excess of well capitalized levels under Basel III regulatory requirements.

About Beneficial Bancorp, Inc.
Beneficial is a community-based, diversified financial services company providing consumer and commercial banking services. Its principal subsidiary, Beneficial Bank, has served individuals and businesses in the Delaware Valley area since 1853. The Bank is the oldest and largest bank headquartered in Philadelphia, Pennsylvania, with 63 offices in the greater Philadelphia and South New Jersey regions. Insurance services are offered through Beneficial Insurance Services, LLC and wealth management services are offered through the Beneficial Advisors, LLC, both wholly owned subsidiaries of the Bank. Equipment leasing services are offered through Beneficial Equipment Leasing Corporation, which is a wholly owned subsidiary of the Bank.  For more information about the Bank and Beneficial, please visit www.thebeneficial.com.

Forward Looking Statements

This news release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows, changes in the quality or composition of Beneficial’s loan or investment portfolios, our ability to successfully integrate the assets, liabilities, customers, systems and employees of Conestoga Bank into our operations and our ability to realize related revenue synergies and cost savings within expected time frames. Additionally, other risks and uncertainties may be described in Beneficial’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q or its other reports as filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, Beneficial assumes no obligation to update any forward-looking statements.

 
BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition
(Dollars in thousands, except share amounts)
 
  September 30, June 30, December 31, September 30,
   2016   2016   2015   2015 
ASSETS:        
Cash and Cash Equivalents:        
Cash and due from banks $49,507  $51,622  $43,978  $48,675 
Interest-bearing deposits  136,550   51,868   189,942   221,334 
Total cash and cash equivalents  186,057   103,490   233,920   270,009 
         
Investment Securities:        
Available-for-sale  502,534   576,374   655,162   678,520 
Held-to-maturity  610,629   642,826   696,310   720,999 
Federal Home Loan Bank stock, at cost  18,231   16,431   8,786   8,786 
Total investment securities  1,131,394   1,235,631   1,360,258   1,408,305 
         
Loans and leases:  3,887,909   3,798,493   2,941,446   2,756,346 
Allowance for loan and lease losses  (44,466)  (44,519)  (45,500)  (47,674)
Net loans and leases  3,843,443   3,753,974   2,895,946   2,708,672 
         
Accrued interest receivable  16,832   16,314   14,298   14,327 
         
Bank premises and equipment, net  76,656   77,842   73,213   77,751 
         
Other assets:        
Goodwill  169,275   169,239   121,973   121,973 
Bank owned life insurance  79,959   79,612   64,827   65,001 
Other intangibles  5,025   5,605   4,389   4,865 
Other assets  71,752   72,382   57,871   57,261 
Total other assets  326,011   326,838   249,060   249,100 
Total assets $5,580,393  $5,514,089  $4,826,695  $4,728,164 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY:        
Liabilities:        
Deposits:        
Non-interest bearing deposits $511,460  $505,029  $409,232  $377,852 
Interest bearing deposits  3,551,993   3,535,542   3,042,691   2,975,514 
Total deposits  4,063,453   4,040,571   3,451,923   3,353,366 
Borrowed funds  415,419   370,414   190,405   190,401 
Other liabilities  78,274   76,788   68,821   72,649 
Total liabilities  4,557,146   4,487,773   3,711,149   3,616,416 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock – $.01 par value  -   -   -   - 
Common stock – $.01 par value  833   832   829   829 
Additional paid-in capital  767,842   762,685   787,503   785,682 
Unearned common stock held by        
employee stock ownership plan  (30,163)  (30,780)  (32,014)  (32,631)
Retained earnings  396,361   390,722   382,951   378,201 
Accumulated other comprehensive loss, net  (18,255)  (17,001)  (23,374)  (19,984)
Treasury stock, at cost  (93,371)  (80,142)  (349)  (349)
Total stockholders’ equity  1,023,247   1,026,316   1,115,546   1,111,748 
Total liabilities and stockholders’ equity $5,580,393  $5,514,089  $4,826,695  $4,728,164 
         


BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
 
 For the Three Months Ended For the Nine Months Ended
 September 30, June 30, September 30, September 30, September 30,
  2016   2016   2015   2016   2015 
INTEREST INCOME:         
Interest and fees on loans and leases$39,645  $37,743  $28,344  $107,378  $82,805 
Interest on overnight investments 167   161   167   588   593 
Interest and dividends on investment securities:         
Taxable 5,900   6,166   7,105   18,425   22,231 
Tax-exempt 325   325   334   975   1,226 
Total interest income 46,037   44,395   35,950   127,366   106,855 
          
INTEREST EXPENSE:         
Interest on deposits:         
Interest bearing checking accounts 588   556   393   1,610   1,197 
Money market and savings deposits 1,456   1,503   1,327   4,281   3,968 
Time deposits 1,996   1,886   1,796   5,511   5,392 
Total 4,040   3,945   3,516   11,402   10,557 
Interest on borrowed funds 1,988   1,674   1,277   4,940   3,784 
Total interest expense 6,028   5,619   4,793   16,342   14,341 
Net interest income 40,009   38,776   31,157   111,024   92,514 
Provision for loan losses -   -   -   -   (3,600)
Net interest income after provision for loan losses 40,009   38,776   31,157   111,024   96,114 
          
NON-INTEREST INCOME:         
Insurance and advisory commission and fee income 1,664   1,539   1,687   5,194   5,159 
Service charges and other income 4,620   4,383   3,984   12,387   12,916 
Mortgage banking income 140   101   170   213   564 
Net gain (loss) on sale of investment securities 1,822   (4)  (5)  1,814   (14)
Total non-interest income 8,246   6,019   5,836   19,608   18,625 
          
NON-INTEREST EXPENSE:         
Salaries and employee benefits 17,644   16,577   15,673   50,038   47,010 
Occupancy expense 2,489   2,453   2,137   7,233   7,146 
Depreciation, amortization and maintenance 2,577   2,571   2,260   7,466   6,735 
Marketing expense 1,032   889   841   2,833   3,304 
Intangible amortization expense 580   558   473   1,611   1,406 
FDIC insurance 669   625   555   1,847   1,615 
Merger and restructuring charges (694)  8,621   -   8,765   - 
Professional fees 1,366   1,386   837   3,781   3,689 
Classified loan and other real estate owned related expense 311   173   77   776   1,168 
Other 7,288   6,200   5,440   19,298   16,705 
Total non-interest expense 33,262   40,053   28,293   103,648   88,778 
          
Income before income taxes 14,993   4,742   8,700   26,984   25,961 
Income tax expense 4,917   1,994   2,865   9,137   7,818 
          
NET INCOME$10,076  $2,748  $5,835  $17,847  $18,143 
          
EARNINGS PER SHARE – Basic$0.14  $0.04  $0.07  $0.25  $0.23 
EARNINGS PER SHARE – Diluted$0.14  $0.04  $0.07  $0.24  $0.23 
          
DIVIDENDS PER SHARE$0.06   -   -  $0.06   - 
          
Average common shares outstanding – Basic 70,593,701   71,197,288   78,544,306   72,643,659   78,458,062 
Average common shares outstanding – Diluted 71,725,229   72,078,696   79,334,149   73,577,326   79,163,078 
          


BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Selected Consolidated Financial and Other Data
(Dollars in thousands)
 
 Three Months Ended Nine Months Ended
 September 30, 2016 June 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015
 AverageYield / AverageYield / AverageYield / AverageYield / AverageYield /
 BalanceRate BalanceRate BalanceRate BalanceRate BalanceRate
               
Investment securities:$1,305,409  1.96% $1,378,633  1.93% $1,687,721  1.80% $1,396,478  1.91% $1,780,615  1.80%
Overnight investments 130,881  0.50%  125,509  0.51%  261,675  0.25%  153,840  0.50%  312,832  0.25%
Stock 18,116  4.49%  14,405  4.45%  8,789  4.45%  13,859  4.45%  8,805  10.02%
Other investment securities 1,156,412  2.08%  1,238,719  2.04%  1,417,257  2.07%  1,228,779  2.05%  1,458,978  1.80%
               
Loans and leases: 3,839,553  4.09%  3,638,837  4.14%  2,704,574  4.15%  3,507,941  4.06%  2,612,752  4.21%
Residential 821,958  4.04%  788,063  4.09%  714,829  4.16%  783,793  4.08%  698,094  4.26%
Commercial real estate 1,489,970  3.92%  1,450,685  4.02%  862,636  4.31%  1,358,022  3.92%  788,131  4.34%
Business and small business 868,269  4.31%  746,406  4.32%  506,427  3.80%  718,949  4.16%  502,483  3.95%
Personal 659,356  4.23%  653,683  4.23%  620,682  4.22%  647,177  4.22%  624,044  4.21%
               
Total interest earning assets$5,144,962  3.55% $5,017,470  3.53% $4,392,295  3.25% $4,904,419  3.45% $4,393,367  3.24%
               
Deposits:$3,544,413  0.45% $3,511,893  0.45% $2,986,616  0.47% $3,401,245  0.45% $3,052,032  0.46%
Savings 1,250,309  0.34%  1,233,829  0.34%  1,140,479  0.34%  1,217,281  0.34%  1,135,868  0.35%
Money market 442,923  0.34%  492,471  0.38%  407,547  0.33%  454,335  0.35%  418,643  0.33%
Demand 874,955  0.24%  854,054  0.24%  669,527  0.21%  834,762  0.23%  705,821  0.21%
Demand - municipals 127,624  0.19%  129,905  0.17%  118,709  0.11%  128,821  0.15%  129,760  0.11%
Total core deposits 2,695,811  0.30%  2,710,259  0.31%  2,336,262  0.29%  2,635,199  0.30%  2,390,092  0.29%
               
Time deposits 848,602  0.94%  801,634  0.95%  650,354  1.10%  766,046  0.96%  661,940  1.09%
               
Borrowings 412,536  1.89%  306,221  2.20%  190,453  2.66%  307,977  2.14%  190,435  2.66%
               
Total interest bearing liabilities$3,956,949  0.61% $3,818,114  0.59% $3,177,069  0.60% $3,709,222  0.59% $3,242,467  0.59%
               
Non-interest bearing deposits 503,501    498,311    379,282    468,681    375,109  
               
Net interest margin  3.08%   3.08%   2.82%   3.00%   2.80%
               


ASSET QUALITY INDICATORS September 30, June 30, December 31, September 30,
(Dollars in thousands) 2016   2016   2015   2015 
        
Non-performing assets:       
Non-accruing loans$13,153  $14,500  $14,768  $12,588 
Accruing loans past due 90 days or more 18,664   20,138   22,900   25,149 
Total non-performing loans$31,817  $34,638   37,668   37,737 
        
Real estate owned 1,486   1,999   1,276   1,451 
        
Total non-performing assets$33,303  $36,637  $38,944  $39,188 
        
Non-performing loans to total loans and leases 0.82%  0.91%  1.28%  1.37%
Non-performing assets to total assets 0.60%  0.66%  0.81%  0.83%
Non-performing assets less accruing government guaranteed       
student loans past due 90 days or more to total assets 0.26% 0.30% 0.33%  0.30%
ALLL to total loans and leases 1.14%  1.17%  1.55% 1.73%
ALLL to non-performing loans 139.76%  128.53%  120.79%  126.33%
ALLL to non-performing loans, excluding government       
guaranteed student loans 338.07%  307.03%  308.10%  378.73%
        

Key performance ratios (annualized) are as follows for the three and nine months ended (unaudited):

 For the Three Months Ended For the Nine Months
Ended
 September 30, June 30, December 31, September 30,
 2016
 2016
 2015
 2016
 2015
PERFORMANCE RATIOS:         
(annualized)         
Return on average assets 0.72%  0.21%  0.39%  0.45%  0.51%
Return on average equity 3.91%  1.11%  1.67%  2.29%  2.32%
Net interest margin 3.08%  3.08%  2.84%  3.00%  2.80%
Efficiency ratio 68.92%  89.41%  79.50%  79.34%  79.88%
Efficiency ratio (excluding merger & restructuring charges) 70.36%  70.16%  77.49%  72.63%  79.88%
Tangible common equity 15.70%  15.95%  21.04%  15.70%  21.40%

 


            

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