LOS ANGELES--(BUSINESS WIRE)--
CU Bancorp (NASDAQ: CUNB), the parent company of wholly owned California United Bank, today reported financial results for the third quarter of 2016.
Third Quarter 2016 Highlights
- Net income available to common shareholders increased to $6.3 million, compared to $6.0 million in the third quarter of 2015
- Total revenue increased 11% from the third quarter of 2015
- Non-performing assets to total assets ratio remains very low at 0.04%; no past due loans over 30 days; net recoveries year to date
- Return on tangible common equity of 10.30%
- Efficiency ratio of 60%
- Diluted earnings per share of $0.36(1)
- Tangible book value per share increased $0.38 to $13.84 per share
- Total assets increased to $2.9 billion, up $289 million from the third quarter of 2015 and $117 million from the prior quarter
- Total loans increased to $2.0 billion, up $204 million from the third quarter of 2015 and $24 million from the prior quarter
- Total deposits increased to $2.5 billion, up $246 million from the third quarter of 2015 and $110 million from the prior quarter
- Non-interest bearing demand deposits were 56% of total deposits
- Continued status as well capitalized, the highest regulatory category
- Named to Fortune’s annual List of 100 Fastest-Growing Companies
- Received “Outstanding” Community Reinvestment Act performance rating from the Federal Deposit Insurance Corporation
Third Quarter 2016 Summary Results
“CUB’s fundamentals remain excellent, with strong third quarter revenue growth of 11% over the year-ago quarter and 13% annualized over the prior quarter, and a pristine balance sheet with nonperforming assets of just four basis points at September 30, 2016,” said David Rainer, Chairman and Chief Executive Officer of CU Bancorp and California United Bank. “Third quarter net income was impacted by one-time costs of $1.2 million, including $957 thousand in compliance expenses related to the BSA Consent Order disclosed in our recent Form 8-K, and $203 thousand in one-time expenses associated with the closing of our Simi Valley administrative office.
“In connection with the BSA Consent Order the Company expects to incur total non-recurring expenses of $2 million, with the substantial portion of these expenses incurred in the third and fourth quarters of 2016. We are committed to meeting the requirements of the BSA Consent Order and believe we are making appropriate progress. Despite the impact of these one-time costs, year-to-date net income available to common shareholders and diluted earnings per share are up 30% and 26%, respectively, over the same period in 2015, which is primarily attributable to our consistent loan growth,” said Rainer.
“In the third quarter of 2016, total loans grew 11% compared to the third quarter of 2015 and total loan growth for the linked-quarter period was 5% annualized,” said Brian Horton, President of CU Bancorp and California United Bank. “Commercial and industrial line of credit loan commitments grew modestly, with utilization steady at 45%. We continue to see fluctuations in commercial and industrial loans outstanding. As we have noted before, this is part of the dynamic of commercial lending, which also speaks to the strong liquidity of our borrowers reflected in CUB’s substantial deposit growth of 11% year over year and 18% annualized from the previous quarter.
“As a Southern California market leader in commercial and industrial lending, we are attracting some of the area’s most experienced and productive relationship managers and we are pleased to report that we have recently added four within our footprint,” added Horton.
“Loan growth resulting from relationship-based banking and combined with consistent, disciplined and prudent underwriting practices is the best defense against credit quality issues,” said Anne Williams, Executive Vice President, Chief Credit Officer and Chief Operating Officer of CU Bancorp and California United Bank. “This approach has been effective for CUB and we have not wavered from it, as reflected in our historically low nonperforming asset ratio of 0.04%. The Company’s senior management team has experience with numerous historical credit cycles and is committed to continue this strong credit discipline in the current competitive lending environment.”
The following table shows the Company’s various non-recurring, non-interest expense of $957 thousand related to the BSA Consent Order, and $203 thousand in occupancy expense related to the closure of the Simi Valley administrative office:
| Non-Recurring Costs Associated with BSA and Office Closure | ||||||
| Q3 2016 | YTD 2016 | |||||
| Non-Interest Expense | ||||||
| Salaries and employee benefits | $ | 106,090 | $ | 106,090 | ||
| Occupancy | 246,673 | 246,673 | ||||
| Legal and professional | 601,822 | 606,822 | ||||
| FDIC deposit assessment | 15,000 | 15,000 | ||||
| Other operating expenses | 190,717 | 288,485 | ||||
| Total Non-Interest Expense | $ | 1,160,302 | $ | 1,263,070 | ||
| (1) |
In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce the complexity of certain aspects of the accounting for employee share-based payment transactions. In the third quarter of 2016, the Company elected the early adoption of this standard which requires the Company to reflect the adjustments resulting from the adoption effective January 1, 2016, the beginning of the annual period that includes the interim period of adoption. See the “Early Adoption of Accounting Standards Update (“ASU”) 2016-09” table at the end of this press release for further details. |
|
Net Income and Profitability Ratios
Net income available to common shareholders for the third quarter of 2016 was $6.3 million or $0.36 per fully diluted share, compared with net income available to common shareholders of $6.0 million or $0.35 per fully diluted share for the third quarter of 2015. The growth in net income available to common shareholders from the year-ago quarter is attributable to a $2.3 million increase in loan interest income, which is the result of the Company’s strong organic loan growth since the prior period. In the third quarter of 2016 the Company recorded no merger-related expenses, compared to $211 thousand in the year-ago quarter, but did incur non-recurring expenses of $1.2 million.
Net income available to common shareholders for the third quarter of 2016 was $6.3 million or $0.36 per fully diluted share, compared with net income available to common shareholders of $6.8 million or $0.39(1) per fully diluted share in the second quarter of 2016, the previous quarter has been recast, due to the adoption of ASU 2016-09 during the third quarter of 2016, which had a positive impact of $475 thousand or $0.03 on the Company’s diluted earnings per share for the second quarter of 2016. The decrease in net income available to common shareholders from the prior quarter is attributable to $1.2 million in non-recurring expenses recorded in the third quarter of 2016, as discussed further in the non-interest expense section. The effects of these two items mask the strong fundamental performance growth in the quarter.
Net income available to common shareholders for the year-to-date period ending September 30, 2016, increased $4.5 million or 30% over the same year-to-date period of 2015. Diluted earnings per share for the year-to-date period ending September 30, 2016, increased $0.23 or 26% compared to the same period of the prior year. The increase was driven by an increase in net interest income of $8.5 million or 13% for the year-to-date period ending September 30, 2016, compared to the same period of the prior year. Non-interest expense for the year-to-date period ending September 30, 2016, increased $2.1 million or 5% compared to the same period of the prior year, which includes the $1.2 million of non-recurring expense.
The following table shows certain of the Company’s performance ratios for the year-to-date periods through September 30, 2016 and 2015, the third quarter of 2016, the second quarter of 2016(1) and the third quarter of 2015:
|
YTD 2016 |
YTD 2015 | Q3 2016 | Q2 2016(1) |
Q3 2015 |
||||||
| Return on average tangible common equity | 11.10% | 9.95% | 10.30% | 11.75% | 11.48% | |||||
| Return on average assets | 0.93% | 0.82% | 0.87% | 0.99% | 0.93% | |||||
| Operating efficiency ratio | 58% | 61% | 60% | 55% | 59% | |||||
Net Interest Income and Net Interest Margin
Net interest income totaled $25.0 million for the third quarter of 2016, an increase of $2.7 million or 12% from the third quarter of 2015. The increase was primarily driven by strong loan growth over the last year.
The Company’s net interest income was positively impacted in the third quarters of both 2016 and 2015 by the recognition of fair value discounts earned on early payoffs of acquired loans. In the third quarter of 2016 the Company recorded $629 thousand in discounts earned on early loan payoffs of acquired loans and other associated payoff benefits of $177 thousand, which had a positive impact on the net interest margin of 12 basis points. In the third quarter of 2015 the Company recorded $560 thousand in discounts earned on early loan payoffs of acquired loans and other associated payoff benefits aggregating to $321 thousand, with a positive impact on the net interest margin of 15 basis points.
The net interest margin in the third quarter of 2016 was 3.72%, compared to 3.79% in the third quarter of 2015. The decrease was primarily driven by average loans being a lower percentage of earning assets in the third quarter of 2016 than in the year-ago period, due to strong growth in average deposits.
Net interest income for the third quarter of 2016 increased $799 thousand or 3% from the second quarter of 2016. The growth was primarily driven by an increase in average loans of $57 million.
The Company’s net interest income was positively impacted in both the third quarter of 2016 and the second quarter of 2016 by the recognition of fair value discounts earned on early payoffs of acquired loans. In the third quarter of 2016 the Company recorded $629 thousand in discounts earned on early loan payoffs and other associated payoff benefits of $177 thousand, which had a positive impact on the net interest margin of 12 basis points. In the second quarter of 2016 the Company recorded $546 thousand in discounts earned on early loan payoffs and other associated payoff benefits of $359 thousand, which had a positive impact on the net interest margin of 14 basis points.
The net interest margin in the third quarter of 2016 was 3.72%, compared to 3.81% in the second quarter of 2016. The decrease was primarily driven by average loans being a lower percentage of earning assets in the third quarter of 2016 than the previous quarter, as well as higher discounts on acquired loans and other associated payoff benefits earned during the second quarter of 2016.
The core loan yield for the third quarter of 2016 was 4.69%, the same as the previous quarter.
As of September 30, 2016, the Company had $10.9 million of discounts remaining on acquired accruing loans.
The Company’s cost of funds was 0.13% in the third quarter of 2016, compared to 0.12% in both the third quarter of 2015 and the second quarter of 2016.
Non-interest Income
Non-interest income was $3.1 million in the third quarter of 2016, an increase of $70 thousand or 2% from $3.0 million in the same quarter of the prior year. The Company’s gain on sale of SBA loans in the third quarter of 2016 was $189 thousand, compared to $640 thousand in the year-ago period, which was the highest in Company history. Other non-interest income in the third quarter of 2016 included $278 thousand in transaction referral fee income generated by the Company’s SBA lending group; the Company had no transaction referral fee income in the year-ago quarter. Deposit account service charge income increased $51 thousand in the third quarter of 2016 compared to the year-ago period. The Company realized a $141 thousand gain on sale of securities in the third quarter of 2016; the year-ago period had no gain on sale of securities.
Non-interest income in the third quarter of 2016 increased $83 thousand or 3% over the second quarter of 2016. The Company’s gain on sale of SBA loans in the third quarter of 2016 was $189 thousand, compared to $485 thousand in the prior quarter. Other non-interest income in the third quarter of 2016 included $278 thousand in transaction referral fee income generated by the Company’s SBA lending group, compared to $29 thousand in transaction referral fee income in the prior quarter. The Company realized a $141 thousand gain on sale of securities in the third quarter of 2016; the prior quarter had no gain on sale of securities.
Non-interest Expense
Non-interest expense for the third quarter of 2016 was $16.8 million, an increase of $1.7 million, or 11% compared to non-interest expense of $15.1 million for the same period of the prior year. This increase followed a six-quarter period during which non-interest expense was essentially flat, despite double-digit growth in loans and deposits. In the third quarter of 2016 the Company’s salaries and employee benefits and stock based compensation expense increased by $462 thousand and $129 thousand, respectively, over the third quarter of 2015, as full-time equivalent employees grew to 285 at September 30, 2016, an increase of 19 from the end of the year-ago quarter. The Company recorded one-time expenses of $1.2 million in the third quarter of 2016, of which $957 thousand were related to BSA Consent Order expenses and $203 thousand were related to costs associated with the closing of the Simi Valley administrative office; the related branch was closed last December.
Non-interest expense for the third quarter of 2016 was $16.8 million, an increase of $1.7 million or 11% over the second quarter of 2016. The Company’s non-interest expense for salaries and benefits increased by $366 thousand in the third quarter of 2016 compared to the second quarter of 2016, reflecting the increase of seven full-time equivalent employees near the end of the second quarter and the hiring of an additional five in the third quarter. The hires were made in order to support the high level of customer service CUB provides, as well as address expanding regulatory and compliance requirements. The increase in expenses associated with BSA compliance will continue through the fourth quarter to reach the expected $1.1 million recurring annual expense. As noted above, the Company recorded non-recurring expenses of $1.2 million in the third quarter of 2016, of which $957 thousand were related to BSA Consent Order expenses and $203 thousand were related to costs associated with the closing of the Simi Valley administrative office; this compares to $103 thousand in second quarter of 2016 related to non-recurring BSA expenses.
Income Tax
In the third quarter of 2016, the effective tax rate was 38%, compared to a recast effective tax rate of 36%(1) for the previous quarter. In the third quarter of 2016 15,000 options were exercised, compared to 207,475 in the second quarter. The first quarter of 2016 benefitted from the exercising of 189,489 options, with a recast effective tax rate of 37%.(1) The tax rate will have more volatility, due to the new accounting treatment of stock based compensation, in future quarters.
Balance Sheet
Assets
Total assets at September 30, 2016, were $2.9 billion, a year-over-year increase of $289 million from September 30, 2015. The increase was primarily due to strong growth in total deposits.
Tangible book value per share at September 30, 2016, was $13.84, an increase of $0.38 or 3% from June 30, 2016, and $1.42 or 11% from September 30, 2015.
Loans
Total loans were $1.97 billion at September 30, 2016, an increase of $24 million or 5% annualized from $1.95 billion at the end of the prior quarter. This also represents an increase of $204 million or 11% from September 30, 2015. The increase in loans for both periods was due to strong organic loan growth.
During the third quarter of 2016, the Company had $66 million of net organic loan production. Pay downs in the acquired loan portfolios were approximately $42 million in the same quarter.
Total commercial and industrial line of credit commitments outstanding increased $13 million from the prior quarter, and utilization of commercial and industrial line of credit commitments continued at 45%, the same as the previous quarter.
Loans secured by real estate grew $53 million in the third quarter of 2016, compared to the prior quarter. The bulk of the growth in loans secured by real estate, 77%, came primarily from other nonresidential properties and multifamily residential properties, representing loans to customers with long-term relationships with the Company and backed by guarantors. The construction lending portfolio accounted for 12% of this growth and owner-occupied real estate made up 9% of the growth.
At September 30, 2016, commercial and industrial loans, and owner-occupied real estate loans combined were $930 million or 47% of total loans, compared to $948 million or 49% at June 30, 2016. At September 30, 2015, commercial and industrial loans, and owner-occupied real estate were $933 million or 53% of total loans.
Deposits
Total deposits at September 30, 2016 were $2.5 billion, an increase of $110 million from the end of the prior quarter and $246 million from the prior year. The strong growth in total deposits year over year was largely in non-interest bearing deposits, which were 56% of total deposits at September 30, 2016, compared to 55% at September 30, 2015, and 56% at June 30, 2016. Average deposits per branch were $278 million as of September 30, 2016.
Cost of deposits for the quarter was 0.11%, compared to 0.10% in both the prior quarter and the year-ago quarter.
Asset Quality
Total non-performing assets were $1.2 million, or 0.04% of total assets at September 30, 2016, compared with $5.6 million or 0.21% of total assets at September 30, 2015. The Company had no past due loans over 30 days at September 30, 2016.
Total nonaccrual loans were $1.2 million or 0.06% of total loans, at September 30, 2016, compared with $4.3 million or 0.24% of total loans at September 30, 2015. There are no individual nonaccrual loans over $300 thousand.
During the third quarter of 2016, the Company recorded net charge-offs of $802 thousand, compared with net recoveries of $868 thousand in the second quarter of 2016 and $136 thousand in net recoveries in the third quarter of 2015. The largest charge-off in the third quarter of 2016 was related to an acquired loan.
The Company recorded a loan loss provision for the third quarter of 2016 of $697 thousand, associated with net organic loan growth of $66 million. This compares to a loan loss provision in the prior quarter of $1.1 million, associated with net organic loan growth of $121 million, and $705 thousand in the year-ago quarter, associated with net organic loan growth of $89 million.
The allowance for loan losses as a percentage of loans (excluding acquired loans that have been marked to fair value and their related allowance) was 1.20% at September 30, 2016, compared with 1.22% at June 30, 2016, and 1.30% at September 30, 2015.
Capital
CU Bancorp remained well capitalized at September 30, 2016, with total risk weighted assets of $2.54 billion. All of the Company’s capital ratios are above minimum regulatory standards for “well capitalized” institutions.
| September 30, 2016 |
Minimum Capital Ratios |
Basel III Minimum |
CU Bancorp |
|||
| Total Risk-Based Capital Ratio | 10% | 8.625% |
11.65% |
|||
| Tier 1 Risk-Based Capital Ratio | 8% | 6.625% | 10.90% | |||
| Common Equity Tier 1 Ratio | 6.5% | 5.125% | 9.77% | |||
| Tier 1 Leverage Capital Ratio | 5% | NA | 9.83% | |||
At September 30, 2016, tangible common equity was $245 million with common shares issued of 17,673,438 as of the same date, resulting in tangible book value per common share of $13.84. This compares to tangible common equity of $238 million with a tangible book value per common share of $13.46 at June 30, 2016.
About CU Bancorp and California United Bank
CU Bancorp is the parent of California United Bank. Founded in 2005, California United Bank provides a full range of financial services, including credit and deposit products, cash management, and internet banking to businesses, non-profits, entrepreneurs, professionals and investors throughout Southern California from its headquarters office in Downtown Los Angeles and additional full-service offices in the San Fernando Valley, the Santa Clarita Valley, the Conejo Valley, Los Angeles, South Bay, Orange County and the Inland Empire. California United Bank is an SBA Preferred Lender. To view CU Bancorp’s most recent financial information, please visit the Investor Relations section of the Company’s Web site. Information on products and services may be obtained by calling 818-257-7700 or visiting the Company’s Web site at www.cunb.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about CU Bancorp (the “Company”) that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: lower than expected revenues; credit quality deterioration or a reduction in real estate values which could cause an increase in the allowance for credit losses and a reduction in net earnings; increased competitive pressure among depository institutions; increased cost of additional capital; a change in the interest rate environment reduces net interest margins; asset/liability repricing risks and liquidity risks; legal matters could be filed against the Company and could take longer or cost more than expected to resolve or may be resolved adversely to the Company; general economic conditions, either nationally or in the market areas in which the Company does or anticipates doing business, are less favorable than expected; environmental conditions, including natural disasters and drought, may disrupt our business, impede our operations, negatively impact the values of collateral securing the Company’s loans and leases or impair the ability of our borrowers to support their debt obligations; the economic and regulatory effects of the continuing war on terrorism and other events of war; legislative or regulatory requirements, including, but not limited to requirements and expenses relating to the Bank Secrecy Act, the Company’s ability to demonstrate compliance with the BSA Consent Order to the satisfaction of the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Business Oversight (“CDBO”), the possibility that any expansionary activities will be impeded while the BSA Consent Order remains outstanding, the Company’s ability to employ and retain additional qualified BSA staff or third parties, or changes adversely affecting the Company’s business; changes in the securities markets; regulatory approvals for any capital activities cannot be obtained on the terms expected or on the anticipated schedule; and, other risks that are described in CU Bancorp’s public filings with the U.S. Securities and Exchange Commission (the “SEC”). If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, CU Bancorp’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read CU Bancorp’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by CU Bancorp with the SEC. The documents filed by CU Bancorp with the SEC may be obtained at CU Bancorp’s website at www.cubancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from CU Bancorp by directing a request to: CU Bancorp c/o California United Bank, 15821 Ventura Boulevard, Suite 100, Encino, CA 91436. Attention: Investor Relations. Telephone 818-257-7700.
| CU BANCORP | ||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | |||||||||||||
| 2016 |
2016 (1) |
2015 | 2015 | |||||||||||||
| Unaudited | Unaudited | Audited | Unaudited | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 47,701 | $ | 42,659 | $ | 50,960 | $ | 41,929 | ||||||||
| Interest earning deposits in other financial institutions | 244,205 | 194,681 | 171,103 | 269,298 | ||||||||||||
| Total cash and cash equivalents | 291,906 | 237,340 | 222,063 | 311,227 | ||||||||||||
| Certificates of deposit in other financial institutions | 51,490 | 54,410 | 56,860 | 58,674 | ||||||||||||
| Investment securities available-for-sale, at fair value | 375,094 | 334,113 | 315,785 | 256,085 | ||||||||||||
| Investment securities held-to-maturity, at amortized cost | 40,073 | 40,595 | 42,036 | 43,269 | ||||||||||||
| Total investment securities | 415,167 | 374,708 | 357,821 | 299,354 | ||||||||||||
| Loans | 1,974,941 | 1,951,111 | 1,833,163 | 1,771,347 | ||||||||||||
| Allowance for loan loss | (18,371 | ) | (18,476 | ) | (15,682 | ) | (14,965 | ) | ||||||||
| Net loans | 1,956,570 | 1,932,635 | 1,817,481 | 1,756,382 | ||||||||||||
| Premises and equipment, net | 4,354 | 4,647 | 5,139 | 4,981 | ||||||||||||
| Deferred tax assets, net | 15,614 | 14,455 | 17,033 | 17,241 | ||||||||||||
| Other real estate owned, net | - | - | 325 | 1,292 | ||||||||||||
| Goodwill | 64,603 | 64,603 | 64,603 | 63,950 | ||||||||||||
| Core deposit and leasehold right intangibles, net | 6,665 | 6,932 | 7,671 | 8,138 | ||||||||||||
| Bank owned life insurance | 50,889 | 50,561 | 49,912 | 49,548 | ||||||||||||
| Accrued interest receivable and other assets | 35,914 | 36,142 | 35,734 | 33,220 | ||||||||||||
| Total Assets | $ | 2,893,172 | $ | 2,776,433 | $ | 2,634,642 | $ | 2,604,007 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| LIABILITIES | ||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,399,320 | $ | 1,337,550 | $ | 1,288,085 | $ | 1,248,348 | ||||||||
| Interest bearing transaction accounts | 284,154 | 259,103 | 261,123 | 257,853 | ||||||||||||
| Money market and savings deposits | 786,882 | 747,490 | 679,081 | 691,292 | ||||||||||||
| Certificates of deposit | 35,033 | 51,598 | 58,502 | 62,320 | ||||||||||||
| Total deposits | 2,505,389 | 2,395,741 | 2,286,791 | 2,259,813 | ||||||||||||
| Securities sold under agreements to repurchase | 24,251 | 25,782 | 14,360 | 16,698 | ||||||||||||
| Subordinated debentures, net | 9,817 | 9,777 | 9,697 | 9,657 | ||||||||||||
| Accrued interest payable and other liabilities | 20,785 | 18,674 | 16,987 | 19,491 | ||||||||||||
| Total Liabilities | 2,560,242 | 2,449,974 | 2,327,835 | 2,305,659 | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||
| Serial preferred stock | 17,021 | 17,086 | 16,995 | 16,739 | ||||||||||||
| Common stock | 234,383 | 234,141 | 230,688 | 227,823 | ||||||||||||
| Additional paid-in capital | 24,847 | 24,437 | 23,017 | 21,810 | ||||||||||||
| Retained earnings | 56,296 | 50,017 | 36,923 | 31,713 | ||||||||||||
| Accumulated other comprehensive income (loss) | 383 | 778 | (816 | ) | 263 | |||||||||||
| Total Shareholders' Equity | 332,930 | 326,459 | 306,807 | 298,348 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,893,172 | $ | 2,776,433 | $ | 2,634,642 | $ | 2,604,007 | ||||||||
| CU BANCORP | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| (Dollars in thousands, except share data) | |||||||||
| For the three months ended | |||||||||
|
September 30, 2016 |
June 30, 2016 (1) |
September 30, 2015 |
|||||||
| Unaudited | Unaudited | Unaudited | |||||||
| Interest Income | |||||||||
| Interest and fees on loans | $ | 23,958 | $ | 23,165 | $ | 21,689 | |||
| Interest on investment securities | 1,419 | 1,415 | 1,124 | ||||||
| Interest on interest bearing deposits in other financial institutions | 478 | 417 | 293 | ||||||
| Total Interest Income | 25,855 | 24,997 | 23,106 | ||||||
| Interest Expense | |||||||||
| Interest on interest bearing transaction accounts | 102 | 99 | 105 | ||||||
| Interest on money market and savings deposits | 524 | 484 | 427 | ||||||
| Interest on certificates of deposit | 46 | 31 | 53 | ||||||
| Interest on securities sold under agreements to repurchase | 13 | 14 | 9 | ||||||
| Interest on subordinated debentures | 122 | 120 | 110 | ||||||
| Total Interest Expense | 807 | 748 | 704 | ||||||
| Net Interest Income | 25,048 | 24,249 | 22,402 | ||||||
| Provision for loan losses | 697 | 1,063 | 705 | ||||||
| Net Interest Income After Provision For Loan Losses | 24,351 | 23,186 | 21,697 | ||||||
| Non-Interest Income | |||||||||
| Gain on sale of securities, net | 141 | - | - | ||||||
| Gain on sale of SBA loans, net | 189 | 485 | 640 | ||||||
| Deposit account service charge income | 1,210 | 1,222 | 1,159 | ||||||
| Other non-interest income | 1,518 | 1,268 | 1,189 | ||||||
| Total Non-Interest Income | 3,058 | 2,975 | 2,988 | ||||||
| Non-Interest Expense | |||||||||
| Salaries and employee benefits | 9,396 | 9,030 | 8,934 | ||||||
| Stock compensation expense | 939 | 891 | 810 | ||||||
| Occupancy | 1,673 | 1,439 | 1,465 | ||||||
| Data processing | 657 | 635 | 596 | ||||||
| Legal and professional | 1,434 | 651 | 412 | ||||||
| FDIC deposit assessment | 389 | 359 | 370 | ||||||
| Merger expenses | - | - | 146 | ||||||
| OREO loss and expenses | 2 | 4 | 153 | ||||||
| Office services expenses | 413 | 320 | 383 | ||||||
| Other operating expenses | 1,864 | 1,760 | 1,798 | ||||||
| Total Non-Interest Expense | 16,767 | 15,089 | 15,067 | ||||||
| Net Income Before Provision for Income Tax Expense | 10,642 | 11,072 | 9,618 | ||||||
| Provision for income tax expense | 4,059 | 3,952 | 3,355 | ||||||
| Net Income | $ | 6,583 | $ | 7,120 | $ | 6,263 | |||
| Preferred stock dividends and discount accretion | 304 | 307 | 293 | ||||||
| Net Income Available to Common Shareholders | $ | 6,279 | $ | 6,813 | $ | 5,970 | |||
| Earnings Per Share | |||||||||
| Basic earnings per share | $ | 0.36 | $ | 0.40 | $ | 0.36 | |||
| Diluted earnings per share | $ | 0.36 | $ | 0.39 | $ | 0.35 | |||
| Average shares outstanding | 17,339,000 | 17,210,000 | 16,541,000 | ||||||
| Diluted average shares outstanding | 17,605,000 | 17,506,000 | 16,998,000 | ||||||
| CU BANCORP | ||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||
| (Dollars in thousands, except share data) | ||||||
| For the nine months ended September 30, | ||||||
| 2016 | 2015 | |||||
| Unaudited | Unaudited | |||||
| Interest Income | ||||||
| Interest and fees on loans | $ | 69,701 | $ | 62,239 | ||
| Interest on investment securities | 4,066 | 3,355 | ||||
| Interest on interest bearing deposits in other financial institutions | 1,334 | 741 | ||||
| Total Interest Income | 75,101 | 66,335 | ||||
| Interest Expense | ||||||
| Interest on interest bearing transaction accounts | 300 | 303 | ||||
| Interest on money market and savings deposits | 1,519 | 1,218 | ||||
| Interest on certificates of deposit | 110 | 150 | ||||
| Interest on securities sold under agreements to repurchase | 38 | 21 | ||||
| Interest on subordinated debentures | 359 | 326 | ||||
| Total Interest Expense | 2,326 | 2,018 | ||||
| Net Interest Income | 72,775 | 64,317 | ||||
| Provision for loan losses | 2,382 | 2,831 | ||||
| Net Interest Income After Provision For Loan Losses | 70,393 | 61,486 | ||||
| Non-Interest Expense | ||||||
| Gain on sale of securities, net | 141 | - | ||||
| Gain on sale of SBA loans, net | 1,228 | 1,278 | ||||
| Deposit account service charge income | 3,621 | 3,453 | ||||
| Other non-interest income | 3,863 | 3,960 | ||||
| Total Non-Interest Income | 8,853 | 8,691 | ||||
| Non-Interest Expense | ||||||
| Salaries and employee benefits | 27,745 | 26,045 | ||||
| Stock compensation expense | 2,664 | 2,130 | ||||
| Occupancy | 4,548 | 4,300 | ||||
| Data processing | 1,910 | 1,872 | ||||
| Legal and professional | 2,560 | 1,914 | ||||
| FDIC deposit assessment | 1,098 | 1,054 | ||||
| Merger related expenses | - | 498 | ||||
| OREO loss and expenses | 85 | 179 | ||||
| Office services expenses | 1,136 | 1,204 | ||||
| Other operating expenses | 5,297 | 5,696 | ||||
| Total Non-Interest Expense | 47,043 | 44,892 | ||||
| Net Income Before Provision for Income Tax Expense | 32,203 | 25,285 | ||||
| Provision for income tax expense | 11,916 | 9,556 | ||||
| Net Income | $ | 20,287 | $ | 15,729 | ||
| Preferred stock dividends and discount accretion | 914 | 877 | ||||
| Net Income Available to Common Shareholders | $ | 19,373 | $ | 14,852 | ||
| Earnings Per Share | ||||||
| Basic earnings per share | $ | 1.13 | $ | 0.90 | ||
| Diluted earnings per share | $ | 1.11 | $ | 0.88 | ||
| Average shares outstanding | 17,197,000 | 16,477,000 | ||||
| Diluted average shares outstanding | 17,510,000 | 16,924,000 | ||||
| CU BANCORP | ||||||||||||||||||
| CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the three months ended | ||||||||||||||||||
| September 30, 2016 | June 30, 2016 | |||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Deposits in other financial institutions | $ | 317,678 | $ | 478 | 0.59 | % | $ | 274,531 | $ | 417 | 0.60 | % | ||||||
| Investment securities | 392,454 | 1,419 | 1.45 | % | 374,888 | 1,415 | 1.51 | % | ||||||||||
| Loans | 1,965,509 | 23,958 | 4.85 | % | 1,908,945 | 23,165 | 4.88 | % | ||||||||||
| Total interest earning assets | 2,675,641 | 25,855 | 3.84 | % | 2,558,364 | 24,997 | 3.93 | % | ||||||||||
| Non-interest earning assets | 209,981 | 209,342 | ||||||||||||||||
| Total Assets | $ | 2,885,622 | $ | 2,767,706 | ||||||||||||||
| Interest Bearing Liabilities: | ||||||||||||||||||
| Interest bearing transaction accounts | $ | 278,983 | $ | 102 | 0.14 | % | $ | 288,384 | $ | 99 | 0.14 | % | ||||||
| Money market and savings deposits | 789,208 | 524 | 0.26 | % | 740,117 | 484 | 0.26 | % | ||||||||||
| Certificates of deposit | 46,197 | 46 | 0.39 | % | 53,460 | 31 | 0.23 | % | ||||||||||
| Total Interest Bearing Deposits | 1,114,388 | 672 | 0.24 | % | 1,081,961 | 614 | 0.23 | % | ||||||||||
| Securities sold under agreements to repurchase | 21,893 | 13 | 0.24 | % | 25,223 | 14 | 0.22 | % | ||||||||||
| Subordinated debentures and other debt | 9,831 | 122 | 4.86 | % | 9,758 | 120 | 4.86 | % | ||||||||||
| Total Interest Bearing Liabilities | 1,146,112 | 807 | 0.28 | % | 1,116,942 | 748 | 0.27 | % | ||||||||||
| Non-interest bearing demand deposits | 1,389,196 | 1,312,833 | ||||||||||||||||
| Total funding sources | 2,535,308 | 2,429,775 | ||||||||||||||||
| Non-interest bearing liabilities | 19,290 | 15,901 | ||||||||||||||||
| Shareholders' Equity | 331,024 | 322,030 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,885,622 | $ | 2,767,706 | ||||||||||||||
| Net interest income | $ | 25,048 | $ | 24,249 | ||||||||||||||
| Net interest margin | 3.72 | % | 3.81 | % | ||||||||||||||
| CU BANCORP | ||||||||||||||||||
| CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the three months ended | ||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Deposits in other financial institutions | $ | 317,678 | $ | 478 | 0.59 | % | $ | 329,640 | $ | 293 | 0.35 | % | ||||||
| Investment securities | 392,454 | 1,419 | 1.45 | % | 281,476 | 1,124 | 1.60 | % | ||||||||||
| Loans | 1,965,509 | 23,958 | 4.85 | % | 1,735,977 | 21,689 | 4.96 | % | ||||||||||
| Total interest earning assets | 2,675,641 | 25,855 | 3.84 | % | 2,347,093 | 23,106 | 3.91 | % | ||||||||||
| Non-interest earning assets | 209,981 | 212,301 | ||||||||||||||||
| Total Assets | $ | 2,885,622 | $ | 2,559,394 | ||||||||||||||
| Interest Bearing Liabilities: | ||||||||||||||||||
| Interest bearing transaction accounts | $ | 278,983 | $ | 102 | 0.14 | % | $ | 268,877 | $ | 105 | 0.15 | % | ||||||
| Money market and savings deposits | 789,208 | 524 | 0.26 | % | 701,189 | 427 | 0.24 | % | ||||||||||
| Certificates of deposit | 46,197 | 46 | 0.39 | % | 61,243 | 53 | 0.34 | % | ||||||||||
| Total Interest Bearing Deposits | 1,114,388 | 672 | 0.24 | % | 1,031,309 | 585 | 0.23 | % | ||||||||||
| Securities sold under agreements to repurchase | 21,893 | 13 | 0.24 | % | 15,306 | 9 | 0.23 | % | ||||||||||
| Subordinated debentures and other debt | 9,831 | 122 | 4.86 | % | 9,703 | 110 | 4.44 | % | ||||||||||
| Total Interest Bearing Liabilities | 1,146,112 | 807 | 0.28 | % | 1,056,318 | 704 | 0.26 | % | ||||||||||
| Non-interest bearing demand deposits | 1,389,196 | 1,190,170 | ||||||||||||||||
| Total funding sources | 2,535,308 | 2,246,488 | ||||||||||||||||
| Non-interest bearing liabilities | 19,290 | 17,717 | ||||||||||||||||
| Shareholders' Equity | 331,024 | 295,189 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,885,622 | $ | 2,559,394 | ||||||||||||||
| Net interest income | $ | 25,048 | $ | 22,402 | ||||||||||||||
| Net interest margin | 3.72 | % | 3.79 | % | ||||||||||||||
| CU BANCORP | ||||||||||||||||||
| CONSOLIDATED YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance |
Interest |
Average Yield/Rate | |||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Deposits in other financial institutions | $ | 297,943 | $ | 1,334 | 0.59 | % | $ | 264,560 | $ | 741 | 0.37 | % | ||||||
| Investment securities | 373,493 | 4,066 | 1.45 | % | 272,820 | 3,355 | 1.64 | % | ||||||||||
| Loans | 1,908,097 | 69,701 | 4.88 | % | 1,686,967 | 62,239 | 4.93 | % | ||||||||||
| Total interest earning assets | 2,579,533 | 75,101 | 3.89 | % | 2,224,347 | 66,335 | 3.99 | % | ||||||||||
| Non-interest earning assets | 211,295 | 209,094 | ||||||||||||||||
| Total Assets | $ | 2,790,828 | $ | 2,433,441 | ||||||||||||||
| Interest Bearing Liabilities: | ||||||||||||||||||
| Interest bearing transaction accounts | $ | 279,386 | $ | 300 | 0.14 | % | $ | 254,092 | $ | 303 | 0.16 | % | ||||||
| Money market and savings deposits | 752,138 | 1,519 | 0.27 | % | 681,852 | 1,218 | 0.24 | % | ||||||||||
| Certificates of deposit | 51,839 | 110 | 0.28 | % | 61,875 | 150 | 0.32 | % | ||||||||||
| Total Interest Bearing Deposits | 1,083,363 | 1,929 | 0.24 | % | 997,819 | 1,671 | 0.22 | % | ||||||||||
| Securities sold under agreements to repurchase | 22,550 | 38 | 0.23 | % | 12,896 | 21 | 0.22 | % | ||||||||||
| Subordinated debentures and other debt | 9,770 | 359 | 4.83 | % | 9,624 | 326 | 4.47 | % | ||||||||||
| Total Interest Bearing Liabilities | 1,115,683 | 2,326 | 0.28 | % | 1,020,339 | 2,018 | 0.26 | % | ||||||||||
| Non-interest bearing demand deposits | 1,335,878 | 1,106,491 | ||||||||||||||||
| Total funding sources | 2,451,561 | 2,126,830 | ||||||||||||||||
| Non-interest bearing liabilities | 17,211 | 17,892 | ||||||||||||||||
| Shareholders' Equity | 322,056 | 288,719 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,790,828 | $ | 2,433,441 | ||||||||||||||
| Net interest income | $ | 72,775 | $ | 64,317 | ||||||||||||||
| Net interest margin | 3.77 | % | 3.87 | % | ||||||||||||||
|
CU BANCORP |
||||||||||||||||||||||
| LOAN COMPOSITION | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
|
September 30, 2016 |
June 30, 2016 |
December 31, 2015 |
September 30, 2015 |
|||||||||||||||||||
| Unaudited | Unaudited | Audited | Unaudited | |||||||||||||||||||
| Commercial and Industrial Loans: | $ | 499,439 | $ | 522,074 | $ | 537,368 | $ | 556,462 | ||||||||||||||
| Loans Secured by Real Estate: | ||||||||||||||||||||||
| Owner-Occupied Nonresidential Properties | 430,218 | 425,515 | 407,979 | 376,579 | ||||||||||||||||||
| Other Nonresidential Properties | 610,267 | 582,204 | 533,168 | 515,402 | ||||||||||||||||||
| Construction, Land Development and Other Land | 172,441 | 165,963 | 125,832 | 94,353 | ||||||||||||||||||
| 1-4 Family Residential Properties | 122,955 | 121,971 | 114,525 | 125,635 | ||||||||||||||||||
| Multifamily Residential Properties | 100,003 | 86,942 | 71,179 | 65,275 | ||||||||||||||||||
| Total Loans Secured by Real Estate | 1,435,884 | 1,382,595 | 1,252,683 | 1,177,244 | ||||||||||||||||||
| Other Loans: | 39,618 | 46,442 | 43,112 | 37,641 | ||||||||||||||||||
| Total Loans | $ | 1,974,941 | $ | 1,951,111 | $ | 1,833,163 | $ | 1,771,347 | ||||||||||||||
| COMMERCIAL AND INDUSTRIAL LINE OF CREDIT UTILIZATION | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
|
September 30, 2016 |
June 30, 2016 |
December 31, 2015 |
September 30, 2015 |
|||||||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||||||
| Disbursed | $ | 396,607 | 45 | % | $ | 396,544 | 45 | % | $ | 408,619 | 46 | % | $ | 413,732 | 47 | % | ||||||||
| Undisbursed | 490,796 | 55 | % | 477,444 | 55 | % | 477,901 | 54 | % | 457,520 | 53 | % | ||||||||||||
| Total Commitments | $ | 887,403 | 100 | % | $ | 873,988 | 100 | % | $ | 886,520 | 100 | % | $ | 871,252 | 100 | % | ||||||||
| CU BANCORP | ||||||||||||||||
| SUPPLEMENTAL DATA | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
|
September 30, |
June 30, 2016 |
December 31, 2015 |
September 30, 2015 |
|||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Capital Ratios Table: | ||||||||||||||||
| Total risk-based capital ratio |
11.65 |
% | 11.62 | % | 11.54 | % | 11.45 | % | ||||||||
| Common equity tier 1 capital ratio | 9.77 | % | 9.69 | % | 9.61 | % | 9.51 | % | ||||||||
| Tier 1 risk-based capital ratio | 10.90 | % | 10.85 | % | 10.85 | % | 10.76 | % | ||||||||
| Tier 1 leverage capital ratio | 9.83 | % | 10.00 | % | 9.67 | % | 9.78 | % | ||||||||
| Tangible Common Equity/Tangible Assets | 8.66 | % | 8.78 | % | 8.49 | % | 8.28 | % | ||||||||
| Asset Quality Table: | ||||||||||||||||
| Loans originated by the Bank on non-accrual | $ | - | $ | 114 | $ | 89 | $ | 1,516 | ||||||||
| Loans acquired thru acquisition that are on non-accrual | 1,223 | 2,463 | 1,962 | 2,788 | ||||||||||||
| Total non-accrual loans | 1,223 | 2,577 | 2,051 | 4,304 | ||||||||||||
| Other Real Estate Owned | - | - | 325 | 1,292 | ||||||||||||
| Total non-performing assets | $ | 1,223 | $ | 2,577 | $ | 2,376 | $ | 5,596 | ||||||||
| Net charge-offs (recoveries) year to date | $ |
(307) |
|
$ |
(1,109) |
|
$ | 2,009 | $ | 476 | ||||||
| Net charge-offs (recoveries) quarterly | $ | 802 | $ |
(868) |
|
$ | 1,532 | $ |
(136) |
|
||||||
| Non-accrual loans to total loans | 0.06 | % | 0.13 | % | 0.11 | % | 0.24 | % | ||||||||
| Total non-performing assets to total assets | 0.04 | % | 0.09 | % | 0.09 | % | 0.21 | % | ||||||||
| Allowance for loan losses to total loans | 0.93 | % | 0.95 | % | 0.86 | % | 0.84 | % | ||||||||
| Allowance for loan losses to total loans accounted at historical cost, which excludes loans acquired by acquisition | 1.20 | % | 1.22 | % | 1.25 | % | 1.30 | % | ||||||||
| Net year to date charge-offs (recoveries) to average year to date loans |
(0.02) |
% |
(0.06) |
% |
0.12 | % | 0.03 | % | ||||||||
| Allowance for loan losses to non-accrual loans accounted at historical cost, which excludes non-accrual loans acquired by acquisition and related allowance | N/A | 15684 | % | 17583 | % | 987 | % | |||||||||
| Allowance for loan losses to total non-accrual loans | 1503 | % | 717 | % | 764 | % | 348 | % | ||||||||
As of September 30, 2016, there were no restructured loans or loans over 90 days past due and still accruing.
| CU BANCORP | ||||||||||||
| GAAP RECONCILIATIONS | ||||||||||||
| These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. | ||||||||||||
| TCE Calculations and Reconciliation to Total Shareholders' Equity | ||||||||||||
| (Unaudited) | ||||||||||||
| The Company utilizes the term Tangible Common Equity (TCE), a non-GAAP financial measure. CU Bancorp’s management believes TCE is useful because it is a measure utilized by both regulators and market analysts in evaluating a consolidated bank holding company’s financial condition and capital strength. TCE represents common shareholders’ equity less goodwill and certain intangible assets. A reconciliation of CU Bancorp’s total shareholders’ equity to TCE is provided in the table below for the periods indicated: | ||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||
|
September 30, 2016 |
June 30, 2016 |
December 31, 2015 |
September 30, 2015 |
|||||||||
| Tangible Common Equity Calculation | ||||||||||||
| Total shareholders' equity | $ | 332,930 | $ | 326,459 | $ | 306,807 | $ | 298,348 | ||||
| Less: Serial preferred stock | 17,021 | 17,086 | 16,995 | 16,739 | ||||||||
| Less: Goodwill | 64,603 | 64,603 | 64,603 | 63,950 | ||||||||
| Less: Core deposit and leasehold right intangibles, net | 6,665 | 6,932 | 7,671 | 8,138 | ||||||||
| Tangible Common Equity | $ | 244,641 | $ | 237,838 | $ | 217,538 | $ | 209,521 | ||||
| Common shares issued | 17,673,000 | 17,668,000 | 17,175,000 | 16,871,000 | ||||||||
| Book value per common share | $ | 17.87 | $ | 17.51 | $ | 16.87 | $ | 16.69 | ||||
| Tangible book value per common share | $ | 13.84 | $ | 13.46 | $ | 12.67 | $ | 12.42 | ||||
| CU BANCORP | ||||||||||||||||||
|
Early Adoption of Accounting Standards Update (ASU) 2016-09
(Unaudited) |
||||||||||||||||||
|
In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce the complexity of certain aspects of the accounting for employee share-based payment transactions. In the third quarter of 2016, the Company elected the early adoption of this standard which requires the Company to reflect the adjustments resulting from the adoption effective January 1, 2016, the beginning of the annual period that includes the interim period of adoption. Previously, excess tax benefits resulting from the exercise or vesting of share-based awards were recorded directly to additional paid-in capital. Under this new guidance, such excess tax benefits are recorded as a reduction in provision for income tax expense in the quarter of exercise or vesting, rather than increasing additional paid-in capital. In addition, the new guidance requires that assumed proceeds under the treasury stock method be modified to exclude the amount of excess tax benefits that would have been recognized in additional paid-in capital, as such, increases the diluted average shares outstanding. |
||||||||||||||||||
| The following table presents the impact of the adoption of the new accounting guidance to the Company’s previously reported financial results: | ||||||||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||||||||
| Three Months Ended June 30, 2016 | Three Months Ended March 31, 2016 | |||||||||||||||||
|
As Previously |
As Reported Under |
As Previously |
As Reported Under |
|||||||||||||||
| Consolidated Statement of Income | ||||||||||||||||||
| Provision for income tax expense | $ | 4,427 | $ | 3,952 | $ | 4,202 | $ | 3,905 | ||||||||||
| Net Income | $ | 6,645 | $ | 7,120 | $ | 6,287 | $ | 6,584 | ||||||||||
| Net Income Available to Common Shareholders | $ | 6,338 | $ | 6,813 | $ | 5,984 | $ | 6,281 | ||||||||||
| Basic earnings per share | $ | 0.37 | $ | 0.40 | $ | 0.35 | $ | 0.37 | ||||||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.39 | $ | 0.35 | $ | 0.36 | ||||||||||
| Diluted average shares outstanding | 17,461,000 | 17,506,000 | 17,341,000 | 17,417,000 | ||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||||
| Additional paid-in capital | $ | 25,209 | $ | 24,437 | $ | 23,854 | $ | 23,557 | ||||||||||
| Retained earnings | $ | 49,245 | $ | 50,017 | $ | 42,907 | $ | 43,204 | ||||||||||
| Ratios | ||||||||||||||||||
| Return on average assets | 0.92 | % | 0.99 | % | 0.89 | % | 0.93 | % | ||||||||||
| Return on average tangible common equity | 10.93 | % | 11.75 | % | 10.75 | % | 11.29 | % | ||||||||||
| Six Months Ended June 30, 2016 | ||||||||||||||||||
|
As Previously |
As Reported Under |
|||||||||||||||||
| Consolidated Statement of Income | ||||||||||||||||||
| Provision for income tax expense | $ | 8,629 | $ | 7,857 | ||||||||||||||
| Net Income | $ | 12,932 | $ | 13,704 | ||||||||||||||
| Net Income Available to Common Shareholders | $ | 12,322 | $ | 13,094 | ||||||||||||||
| Basic earnings per share | $ | 0.72 | $ | 0.77 | ||||||||||||||
| Diluted earnings per share | $ | 0.71 | $ | 0.75 | ||||||||||||||
| Diluted average shares outstanding | 17,401,000 | 17,462,000 | ||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||||
| Additional paid-in capital | $ | 25,209 | $ | 24,437 | ||||||||||||||
| Retained earnings | $ | 49,245 | $ | 50,017 | ||||||||||||||
| Ratios | ||||||||||||||||||
| Return on average assets | 0.90 | % | 0.96 | % | ||||||||||||||
| Return on average tangible common equity | 10.85 | % | 11.52 | % | ||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027005439/en/
