Net Income increased to $6.2 Million or $0.52 Per Diluted Share
Net Interest Margin Remains Strong at 4.17%
Board of Directors Declares Cash Dividend Payable November 30, 2011
HIGHLIGHTS FROM THE THIRD QUARTER OF 2011
-
Net Income and Net Income per Diluted Share Growth: Net income increased to $6.2 million, or $0.52 per diluted share, for the third quarter of 2011. This represented a 79.3% increase in net income per diluted share compared to $0.29 for the quarter ended June 30, 2011. Net income per diluted share also increased 48.6% compared to $0.35 for the quarter ended September 30, 2010.
-
Net Interest Margin Strength: The net interest margin totaled 4.17% for the third quarter of 2011 compared to 4.23% for the second quarter of 2011 and 3.64% for the third quarter of 2010.
-
Further Decrease in Non-Interest Expense: Non-interest expense totaled $19.4 million for the third quarter of 2011, which represents a decrease of $3.4 million or 14.8% compared to $22.8 million for the second quarter of 2011.
- Asset Quality Strength: Non-performing assets decreased to $32.9 million, or 1.30% of total assets, at September 30, 2011. This represents a 20.4% decrease in non-performing assets compared to $41.3 million or 1.64% at June 30, 2011.
HARRISBURG, Pa., Oct. 26, 2011 (GLOBE NEWSWIRE) -- Tower Bancorp, Inc. (Nasdaq:TOBC) (the "Company"), the parent company of Graystone Tower Bank (the "Bank"), reported record net income available to shareholders of $6.2 million or $0.52 per diluted share for the third quarter of 2011, an increase of $2.7 million or $0.23 per diluted share when compared to the second quarter of 2011 and an increase of $3.7 million or $0.17 per diluted share when compared to the third quarter of 2010.
Operating (non-GAAP) income, that is net income recognized in accordance with Generally Accepted Accounting Principles ("GAAP") adjusted for merger-related expenses, restructuring charges, and nonrecurring transactions, also totaled $6.2 million for the quarter ended September 30, 2011. Operating (non-GAAP) income increased $2.1 million when compared to the second quarter of 2011, and $3.6 million when compared to the third quarter of 2010.
Board of Directors Declares $0.14 per Share Dividend, Payable on November 30, 2011
Andrew Samuel, Chairman and CEO, reported that the Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on November 30, 2011 to shareholders of record at the close of business on November 15, 2011.
Review of Balance Sheet and Credit Quality
Total assets at September 30, 2011 totaled $2.5 billion, representing an increase of $13.2 million or 0.5% from June 30, 2011. Total gross loans held for investment increased $24.4 million or 1.2% from $2.04 billion at June 30, 2011 to $2.06 billion at September 30, 2011. Total commercial loans increased $31.0 million from June 30, 2011 to $1.58 billion at September 30, 2011, representing an annualized growth rate of 8.0%. Total consumer and other loans and residential mortgages held for investment increased $6.0 million and decreased $12.8 million, respectively, from June 30, 2011 to September 30, 2011. Loans held for sale, representing agency-conforming residential mortgages originated for sale, increased $14.4 million during the third quarter of 2011 to $30.1 million at September 30, 2011.
The investment portfolio decreased $55.3 million or 26.4% from June 30, 2011 to $153.9 million at September 30, 2011. The investment portfolio represents approximately 6.1% of total assets as of September 30, 2011. At September 30, 2011 liquid assets (defined as cash and cash equivalents, loans held for sale, and securities available for sale exclusive of securities pledged as collateral or used in connection with customer repurchase agreements) totaled approximately $233.8 million or 10.9% of total deposits. This compares to $222.4 million, or 10.4%, of total deposits, at June 30, 2011.
Total deposits were stable, increasing $6.6 million or 0.3% during the third quarter of 2011. The Company's deposit mix continued to be weighted heavily in lower cost demand, savings and money market accounts, which comprised 60.1% and 61.7% of total deposits at September 30, 2011 and June 30, 2011, respectively. As of September 30, 2011, total non-reciprocal brokered deposits represented 7.1% of total deposits. The average cost of deposits increased by 3 basis points from 0.88% for the quarter ended June 30, 2011 to 0.91% for the quarter ended September 30, 2011. At September 30, 2011, the Company had a weighted average cost of deposits of 1.03% exclusive of amortization from purchase accounting adjustments compared to 1.01% at June 30, 2011.
The provision for loan losses was $1.3 million during the third quarter of 2011 compared to $1.5 million for the second quarter of 2011 and $1.6 million for the third quarter of 2010. The allowance for loan losses at September 30, 2011 of $11.9 million is generally unchanged from the balance at June 30, 2011. The provision for loan losses for the third quarter of 2011 covered net loan charge-offs of approximately $1.2 million. The annualized rate of net charge-offs to average loans for the third quarter of 2011 and for the nine months ended September 30, 2011 were 0.24%, and 0.42%, respectively.
At September 30, 2011, non-performing assets totaled $32.9 million, a decrease of $8.4 million or 20.4% in comparison to the second quarter of 2011. Loans delinquent for greater than ninety days and still accruing interest increased $1.5 million and other real estate owned increased $0.8 million. During the third quarter of 2011, non-accrual loans decreased by $10.7 million to $22.8 million at September 30, 2011. Approximately $10.3 million of the decrease in non-accrual loans was attributable to a single lending relationship. The loans attributable to this relationship were previously restructured and have performed in accordance with the revised terms. Acquired loans deemed to be impaired at the time of purchase in accordance with Accounting Standard Codification 310-30-30, previously known as Statement of Position (SOP) 03-3, "Accounting for Certain Loans Acquired in a Transfer," have been recorded at their fair value based on anticipated future cash flows at the time of acquisition and are considered to be performing loans as the Company expects to fully collect the new carrying value (i.e. fair value) of the loans. For these loans acquired through the Company's acquisition of First Chester County Corporation (the "First Chester Merger"), the Company recorded a reduction of $29.7 million to their carrying value to record them at fair value at the time of acquisition. As such, these loans have been excluded from non-performing assets for all periods discussed.
The ratio of non-performing assets to total assets at September 30, 2011 declined to 1.30% from 1.64% at June 30, 2011. Although the third quarter allowance for loan loss to non performing loans of 41.6% is lower than the industry average, nearly half of the loan portfolio has been marked to market through purchase accounting in connection with the First National Bank of Greencastle and First National Bank of Chester County acquisitions. When including general credit fair value adjustments recorded on the loan portfolio and the allowance for loan loss, the adjusted (non-GAAP) allowance for loan losses to non-performing loans is 96.6% at September 30, 2011.
GAAP requires that expected credit losses associated with loans obtained in an acquisition be reflected at fair value as of each respective acquisition date and prohibits the carryover of the acquired entity's allowance for loan losses. Accordingly, the Company's management believes that presentation of the adjusted (non-GAAP) allowance for loan losses, consisting of the allowance for loan losses plus the credit fair value adjustment on loans purchased in merger transactions, is useful for investors to understand the complete allowance that is recorded as a representation of future expected losses over the Company's loan portfolio. The details of this calculation and reconciliation of GAAP and non-GAAP measures are provided in the Selected Financial Data tables found later in this release.
Review of Income Statement
Net income for the third quarter of 2011 equaled $6.2 million or $0.52 per diluted share, which reflects an increase of $2.7 million or $0.23 per diluted share as compared to the second quarter of 2011 and an increase of $3.7 million or $0.17 per diluted share when compared to the third quarter of 2010. Operating (non-GAAP) income for the third quarter of 2011 was also $6.2 million, an increase of $2.1 million when compared to the second quarter of 2011 and $3.6 million when compared to the third quarter of 2010.
Net interest income for the third quarter was $23.9 million reflecting a decrease of $435 thousand as compared to the second quarter of 2011. Net interest income for the third quarter of 2011 increased $10.5 million when compared to the third quarter of 2010. Net interest margin was 4.17% for the quarter ending September 30, 2011. This reflects a decrease of 6 basis points when compared to the second quarter of 2011 and an increase of 53 basis points when compared to the third quarter of 2010. Average investments decreased $19.3 million and average loans decreased $3.0 million, when compared to the second quarter of 2011, while the average rate received on interest earning assets decreased by 2 basis points. The average balance of interest-bearing liabilities for the third quarter of 2011 decreased by $21.9 million while the average rate paid increased by 5 basis points compared to the second quarter of 2011. Exclusive of the amortization of purchase accounting fair value adjustments, when comparing the third quarter 2011to the second quarter of 2011, yield on interest earning assets would have been down 6 basis points to 5.01%, the cost of interest bearing liabilities would have been flat at 1.40%, and net interest margin would have been down 3 basis points to 3.83%.
Noninterest income was $5.7 million for the third quarter of 2011, which represents an increase of $825 thousand or 17.0% when compared to the second quarter of 2011. Gains on the sale of investment securities were $884 thousand for the third quarter of 2011 as compared to $35 thousand in the second quarter of 2011 and $249 thousand in the third quarter of 2010. Noninterest income increased $2.7 million when compared to the third quarter of 2010. These increases are mostly the result of additional revenue streams acquired through the First Chester Merger and gains on the sale of securities recognized in the third quarter of 2011.
Noninterest expense was $19.4 million for the third quarter of 2011. When comparing the third quarter of 2011 to the second quarter of 2011, non-interest expenses decreased $3.4 million or 14.9%. This is driven primarily by a reduction in salary and benefit costs as the Company continued to realize cost savings resulting from the First Chester Merger, and reductions in professional service fees and merger related expenses. Noninterest expense increased $8.4 million or 76.9% when compared to the third quarter of 2010, primarily resulting from expenses related to operating a significantly larger organization in 2011 as compared to 2010.
Income tax expense for the third quarter of 2011 was $2.7 million, which resulted in an effective tax rate of 30.2%, compared to 29.9% for the second quarter of 2011 and 33.6% for the third quarter of 2010.
Residential Mortgage Segment
The Residential Mortgage Segment recognized a loss of $24 thousand during the third quarter of 2011. This compares to a loss of $1.2 million during the second quarter of 2011. During the first six months of 2011, the Company substantially restructured the residential mortgage operations acquired in connection with the First Chester Merger. As part of the restructuring, the Company intentionally reduced the size of its residential mortgage operations, which resulted in a decrease of loans held for sale from $147.3 million at December 31, 2010 to $30.1 million at September 30, 2011. The results of third quarter of 2011 reflect a revenue stream and downsized infrastructure that is predominantly limited to serving customers throughout the Company's footprint.
Merger with Susquehanna Bancshares, Inc.
On June 20, 2011, the Company announced the signing of a definitive agreement with Susquehanna Bancshares, Inc. ("Susquehanna") pursuant to which the Company will be acquired in a stock and cash transaction valued at approximately $343.0 million at the time of announcement. Under the terms of the merger agreement, the Company's shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88.0 million of the total consideration being paid in cash. The final transaction value will be determined at the closing of the acquisition based on the stock price of Susquehanna at that time. The merger is anticipated to close in February 2012, subject to shareholder and regulatory approvals and other customary closing conditions.
Supplemental Information – Explanation of Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with GAAP. These measures include tangible assets, tangible common equity, operating income and performance and capital ratios derived from the foregoing. Tangible assets and tangible common equity are derived by reducing the balance of assets and equity, respectively, by the amount of GAAP reported goodwill and other intangible assets. Operating income is calculated by adjusting net income available to common shareholders for merger-related expenses, restructuring charges, and other nonrecurring transactions that occurred during the period presented, since such expenses are considered by management to be "non-operating" in nature. The Company calculates the return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from the calculation of return on average equity. Management refers to tangible common equity, tangible assets and related ratios and calculations derived from the foregoing because it believes such measures are useful in assessing the strength of the Company's capital position. The Company believes the presentation of these non-GAAP financial measures provide useful supplemental information that is essential to an investor's proper understanding of the operating results of the Company's core businesses. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included as tables at the end of this release.
About Tower Bancorp, Inc.
Tower Bancorp, Inc. is the parent company of Graystone Tower Bank, a full-service community bank operating 49 branch offices in central and southeastern Pennsylvania and Maryland through three divisions, Graystone Bank, Tower Bank, and 1N Bank. With total assets of approximately $2.5 billion, Tower Bancorp's unparalleled competitive advantage is its employees and a strong corporate culture paired with a clear vision that provides customers with uncompromising service and individualized solutions to every financial need. Tower Bancorp's common stock is listed on the NASDAQ Global Select Market under the symbol "TOBC." More information about Tower Bancorp and its divisions can be found on the internet at www.yourtowerbank.com, www.graystonebank.com, 1nbank.com and www.towerbancorp.com.
The Tower Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7686
Safe Harbor for Forward-Looking Statements
This document contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, which are based on the Company's current expectations, estimates and projections about future events. This includes statements regarding the future performance of Susquehanna, the timing of the merger transaction, the business plans and integration efforts once the transaction is complete, and the impact of the transaction and Susquehanna's acquisition of Abington Bancorp, Inc., on Susquehanna's earnings, market share and capital position. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties, such as whether the merger will be approved by the shareholders of Susquehanna and the Company or by regulatory authorities, whether each of the other conditions to closing set forth in the merger agreement will be met, Susquehanna's ability to integrate the Company as planned and the general effects of financial, economic, regulatory and political conditions affecting the banking and financial services industries. Accordingly, actual results may differ materially. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For additional factors that may affect future results, please see filings made by Susquehanna and the Company with the Securities and Exchange Commission ("SEC"), including their Annual Reports on Form 10-K for the year ended December 31, 2010, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011.
Additional Information about the Merger and Where to Find It
In connection with the proposed merger of the Company and Susquehanna (the "Merger"), Susquehanna has filed with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4, which has been declared effective by the SEC and includes a joint proxy statement/prospectus and other relevant documents that have been distributed to the shareholders of the Company and Susquehanna. Investors and security holders of Susquehanna and the Company are encouraged to read the registration statement and the joint proxy statement/prospectus relating to the proposed transaction and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about the Company, Susquehanna and the Merger. The joint proxy statement/prospectus and other relevant materials, and any other documents filed by Susquehanna or the Company with the SEC, may be obtained free of charge at the SEC's Web site at http://www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by the Company by contacting Brent Smith, Tower Bancorp, Inc., 112 Market Street, Harrisburg, PA 17101, telephone: 717-724-4666 or from Tower's web site at http://www.towerbancorp.com. Investors and security holders may obtain free copies of the documents filed with the SEC by Susquehanna by contacting Abram G. Koser, Susquehanna Bancshares, Inc., 26 North Cedar Street, Lititz, PA 17543, telephone: 717-626-4721 or from Susquehanna's web site at http://www.susquehanna.net.
Susquehanna, the Company and their respective directors, executive officers and certain other members of management and employees may be deemed "participants" in the solicitation of proxies from shareholders of Susquehanna and the Company in favor of the Merger. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders of Susquehanna and the Company in connection with the proposed Merger will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about the executive officers and directors of Susquehanna in its Annual Report on Form 10-K for the year ended December 31, 2010 and in its joint proxy statement/prospectus filed with the SEC on March 18, 2011. You can find information about the Company's executive officers and directors in its Annual Report on Form 10-K for the year ended December 31, 2010 and in its definitive proxy statement filed with the SEC on April 8, 2011.
Investors and security holders are urged to read the joint proxy statement/prospectus and the other relevant materials before making any voting or investment decision with respect to the Merger.
Tower Bancorp, Inc. and Subsidiary | ||||
Consolidated Balance Sheets | ||||
September 30, 2011, June 30, 2011, December 31, 2010 and September 30, 2010 | ||||
(Amounts in thousands, except share data) | ||||
September 30, 2011 | June 30, 2011 | December 31, 2010 | September 30, 2010 | |
Assets | (unaudited) | (unaudited) | (unaudited) | |
Cash and due from banks | $ 116,418 | $ 77,734 | $ 219,741 | $ 28,434 |
Federal funds sold | 14,547 | 17,738 | 28,738 | 17,831 |
Cash and cash equivalents | 130,965 | 95,472 | 248,479 | 46,265 |
Securities available for sale | 153,919 | 209,209 | 102,695 | 145,428 |
Restricted investments | 12,629 | 13,283 | 14,696 | 6,254 |
Loans held for sale | 30,095 | 15,664 | 147,281 | 12,851 |
Loans, net of allowance for loan losses of $11,925, $11,869, $14,053 and $12,717 | 2,052,300 | 2,027,998 | 2,058,191 | 1,308,820 |
Premises and equipment, net | 52,808 | 54,235 | 56,388 | 29,555 |
Accrued interest receivable | 6,956 | 7,150 | 7,856 | 5,220 |
Deferred tax asset, net | 15,369 | 15,401 | 19,526 | 1,488 |
Bank owned life insurance | 40,856 | 40,466 | 39,670 | 37,906 |
Goodwill | 18,305 | 17,996 | 16,750 | 11,935 |
Other intangible assets, net | 6,333 | 6,697 | 7,493 | 2,871 |
Other real estate owned | 4,293 | 3,520 | 4,647 | 879 |
Other assets | 14,865 | 19,403 | 23,617 | 9,369 |
Total assets | $ 2,539,693 | $ 2,526,494 | $ 2,747,289 | $ 1,618,841 |
Liabilities and equity | ||||
Liabilities | ||||
Deposits: | ||||
Non-interest bearing | $ 292,619 | $ 304,541 | $ 301,210 | $ 125,174 |
Interest bearing | 1,861,153 | 1,842,659 | 1,998,688 | 1,230,543 |
Total deposits | 2,153,772 | 2,147,200 | 2,299,898 | 1,355,717 |
Securities sold under agreements to repurchase | 10,555 | 7,161 | 6,605 | 7,102 |
Short-term borrowings | 56 | 43 | 55,039 | 5,037 |
Long-term debt | 87,887 | 87,856 | 87,800 | 72,398 |
Accrued interest payable | 1,625 | 1,713 | 1,950 | 1,084 |
Other liabilities | 24,174 | 25,633 | 38,111 | 11,667 |
Total liabilities | 2,278,069 | 2,269,606 | 2,489,403 | 1,453,005 |
Equity | ||||
Common stock, no par value; 50,000,000 shares authorized; 12,110,545 issued and 12,007,187 outstanding at September 30, 2011, and June 30, 2011, 12,074,757 issued and 11,971,399 outstanding at December 31, 2010 and 7,287,158 issued and 7,183,800 outstanding at September 30, 2010. | -- | -- | -- | -- |
Additional paid-in capital | 272,368 | 272,292 | 271,350 | 173,175 |
Accumulated deficit | (9,311) | (13,852) | (10,868) | (4,431) |
Accumulated other comprehensive income | 2,595 | 2,155 | 251 | 1,143 |
Less: cost of treasury stock, 103,358 at September 30, 2011 June 30, 2011, December 31, 2010, and September 30, 2010 | (4,093) | (4,093) | (4,093) | (4,093) |
Total stockholders' equity | 261,559 | 256,502 | 256,640 | 165,794 |
Noncontrolling interests | 65 | 386 | 1,246 | 42 |
Total equity | 261,624 | 256,888 | 257,886 | 165,836 |
Total liabilities and equity | $ 2,539,693 | $ 2,526,494 | $ 2,747,289 | $ 1,618,841 |
Tower Bancorp, Inc. and Subsidiary | |||||
Consolidated Statements of Operations | |||||
Three Months Ended September 30, 2011, June 30, 2011 and September 30, 2010 and Nine Months Ended September 30, 2011 and 2010 | |||||
(Amounts in thousands, except share data) | |||||
For the Three Months Ended | For the Nine Months Ended | ||||
September 30, 2011 |
June 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
|
Interest income | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
Loans, including fees | $ 29,065 | $ 28,979 | $ 17,852 | $ 87,243 | $ 51,632 |
Securities | 1,108 | 1,389 | 1,020 | 3,470 | 3,223 |
Federal funds sold and other | 42 | 41 | 24 | 180 | 98 |
Total interest income | 30,215 | 30,409 | 18,896 | 90,893 | 54,953 |
Interest expense | |||||
Deposits | 4,959 | 4,800 | 4,492 | 14,275 | 13,645 |
Short-term borrowings | 69 | 65 | 177 | 323 | 482 |
Long-term debt | 1,288 | 1,210 | 856 | 3,658 | 2,503 |
Total interest expense | 6,316 | 6,075 | 5,525 | 18,256 | 16,630 |
Net interest income | 23,899 | 24,334 | 13,371 | 72,637 | 38,323 |
Provision for loan losses | 1,300 | 1,500 | 1,600 | 4,450 | 4,950 |
Net interest income after provision for loan losses | 22,599 | 22,834 | 11,771 | 68,187 | 33,373 |
Noninterest income | |||||
Service charges on deposit accounts | 1,130 | 1,128 | 832 | 3,367 | 2,377 |
Fiduciary fees and brokerage commissions | 905 | 1,066 | 87 | 2,868 | 225 |
Other service charges, commissions and fees | 1,003 | 950 | 493 | 2,857 | 1,563 |
Gain on sale of mortgage loans originated for sale | 1,076 | 1,128 | 656 | 3,672 | 1,250 |
Impairment losses on securities available for sale | 0 | (63) | (70) | (63) | (138) |
Income from bank owned life insurance | 390 | 387 | 566 | 1,186 | 1,300 |
Other income | 1,179 | 262 | 414 | 1,966 | 772 |
Total noninterest income | 5,683 | 4,858 | 2,978 | 15,853 | 7,349 |
Noninterest expenses | |||||
Salaries and employee benefits | 9,770 | 11,297 | 5,521 | 34,177 | 15,906 |
Occupancy and equipment | 4,031 | 3,952 | 1,805 | 12,353 | 5,236 |
Amortization of intangible assets | 343 | 344 | 160 | 1,093 | 496 |
FDIC insurance premiums | 526 | 764 | 564 | 2,184 | 1,500 |
Advertising and promotion | 508 | 697 | 231 | 1,770 | 740 |
Data processing | 1,162 | 1,096 | 740 | 3,413 | 1,894 |
Communication | 298 | 364 | 278 | 1,377 | 771 |
Professional service fees | 700 | 961 | 385 | 2,862 | 1,197 |
Impairment on fixed assets | -- | -- | -- | -- | 920 |
Other operating expenses | 2,068 | 2,332 | 1,149 | 8,157 | 3,501 |
Restructuring charges | 61 | 414 | -- | 1,635 | -- |
Merger related expenses | (92) | 538 | 117 | 693 | 304 |
Total noninterest expenses | 19,375 | 22,759 | 10,950 | 69,714 | 32,465 |
Income before income taxes | 8,907 | 4,933 | 3,799 | 14,326 | 8,257 |
Income tax expense | 2,686 | 1,476 | 1,275 | 4,308 | 2,647 |
Income | 6,221 | 3,457 | 2,524 | 10,018 | 5,610 |
Less: income from noncontrolling interest | 2 | (53) | 22 | 71 | 26 |
Net income | $ 6,219 | $ 3,510 | $ 2,502 | $ 9,947 | $ 5,584 |
Per share data | |||||
Net income per shares | |||||
Basic | $ 0.52 | $ 0.29 | $ 0.35 | $ 0.83 | $ 0.78 |
Diluted | $ 0.52 | $ 0.29 | $ 0.35 | $ 0.83 | $ 0.78 |
Dividends declared | $ 0.14 | $ 0.28 | $ 0.28 | $ 0.70 | $ 0.84 |
Weighted average common shares outstanding | |||||
Basic | 12,007,187 | 11,996,283 | 7,144,685 | 11,993,204 | 7,134,611 |
Diluted | 12,016,724 | 11,999,772 | 7,144,721 | 11,999,215 | 7,137,508 |
Tower Bancorp, Inc. and Subsidiary | ||||||
Yields on Average Interest-Earning Assets and Interest-Bearing Liabilities | ||||||
Three months ended September 30, 2011 and 2010 | ||||||
(Amounts in thousands, except for rate data) | ||||||
For the Three Months Ended September 30, | ||||||
2011 | 2010 | |||||
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
|
(Amounts Unaudited) | ||||||
Interest-earning assets: | ||||||
Federal funds sold and other (3) | $ 6,255 | $ 2 | 0.13% | $ 16,801 | $ 24 | 0.57% |
Investment securities (1) | 204,724 | 1,199 | 2.32% | 175,533 | 1,071 | 2.42% |
Loans | 2,069,430 | 29,065 | 5.57% | 1,270,993 | 17,852 | 5.57% |
Total interest-earning assets | 2,280,409 | 30,266 | 5.27% | 1,463,327 | 18,947 | 5.14% |
Other assets | 254,878 | 137,532 | ||||
Total assets | $ 2,535,287 | $ 1,600,859 | ||||
Interest-bearing liabilities: | ||||||
Interest-bearing non-maturity deposits | $ 1,012,046 | 1,409 | 0.55% | $ 794,970 | 2,138 | 1.07% |
Time deposits | 848,526 | 3,550 | 1.66% | 423,415 | 2,354 | 2.21% |
Borrowings | 97,131 | 1,357 | 5.54% | 85,863 | 1,033 | 4.77% |
Total interest-bearing liabilities | 1,957,703 | 6,316 | 1.28% | 1,304,248 | 5,525 | 1.68% |
Demand deposits | 294,520 | 116,974 | ||||
Other liabilities | 23,937 | 13,738 | ||||
Equity | 259,127 | 165,899 | ||||
Total liabilities and equity | $ 2,535,287 | $ 1,600,859 | ||||
Net interest spread | 3.99% | 3.46% | ||||
Net interest income and interest rate margin FTE | $23,950 | 4.17% | $13,422 | 3.64% | ||
Tax equivalent adjustment | (91) | (51) | ||||
Net interest income | $23,859 | $13,371 | ||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 116.5% | 112.2% | ||||
(1) The average yields for investment securities available for sale are reported on a fully taxable-equivalent basis at a rate of 35% for 2011 and 34% for 2010. | ||||||
(2) Average loan balances include non-accrual loans. | ||||||
(3) Amounts exclude cash balances held at the Federal Reserve and any interest earned thereon. |
Tower Bancorp, Inc. and Subsidiary | ||||||
Yields on Average Interest-Earning Assets and Interest-Bearing Liabilities | ||||||
For the Nine Months Ended September 30, 2011 and 2010 | ||||||
(Amounts in thousands, except for rate data) | ||||||
For the Nine Months Ended September 30, | ||||||
2011 | 2010 | |||||
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
|
(Amounts Unaudited) | ||||||
Interest-earning assets: | ||||||
Federal funds sold and other (3) | $ 15,821 | $ 15 | 0.13% | $ 20,010 | $ 98 | 0.65% |
Investment securities (1) | 197,883 | 3,732 | 2.52% | 181,018 | 3,358 | 2.48% |
Loans | 2,093,762 | 87,243 | 5.57% | 1,202,259 | 51,632 | 5.74% |
Total interest-earning assets | 2,307,466 | 90,990 | 5.27% | 1,403,287 | 55,088 | 5.25% |
Other assets | 291,716 | 150,828 | ||||
Total assets | $ 2,599,182 | $ 1,554,115 | ||||
Interest-bearing liabilities: | ||||||
Interest-bearing non-maturity deposits | $ 1,045,110 | 4,347 | 0.56% | $ 749,017 | 6,470 | 1.15% |
Time deposits | 852,020 | 9,928 | 1.56% | 425,697 | 7,175 | 2.25% |
Borrowings | 104,281 | 3,981 | 5.10% | 85,691 | 2,985 | 4.66% |
Total interest-bearing liabilities | 2,001,411 | 18,256 | 1.22% | 1,260,405 | 16,630 | 1.76% |
Demand deposits | 310,712 | 114,534 | ||||
Other liabilities | 30,515 | 14,138 | ||||
Equity | 256,544 | 165,038 | ||||
Total liabilities and equity | $ 2,599,182 | $ 1,554,115 | ||||
Net interest spread | 4.05% | 3.48% | ||||
Net interest income and interest rate margin FTE | $ 72,734 | 4.21% | $ 38,458 | 3.66% | ||
Tax equivalent adjustment | (262) | (135) | ||||
Net interest income | $ 72,472 | $ 38,323 | ||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 115.3% | 111.3% | ||||
(1) The average yields for investment securities available for sale are reported on a fully taxable-equivalent basis at a rate of 35% for 2011 and 34% for 2010. | ||||||
(2) Average loan balances include non-accrual loans. | ||||||
(3) Amounts exclude cash balances held at the Federal Reserve and any interest earned thereon. |
Tower Bancorp, Inc. and Subsidiary | ||||||||||
Selected Financial Information | ||||||||||
(Dollars in thousands, except share data and ratios) | ||||||||||
(Unaudited) | ||||||||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
|||||||
Selected Balance Sheet Data: | ||||||||||
Loans held for investment | $ 2,064,225 | $ 2,039,867 | $ 2,072,244 | $ 1,321,537 | ||||||
Loans held for sale | 30,095 | 15,664 | 147,281 | 12,851 | ||||||
Allowance for loans losses | $ 11,925 | $ 11,869 | $ 14,053 | $ 12,717 | ||||||
Credit quality adjustment on loans purchased (1) | 15,726 | 17,828 | 21,693 | 1,509 | ||||||
Adjusted (Non-GAAP) allowance for loan losses (9) | $ 27,651 | $ 29,697 | $ 35,746 | $ 14,226 | ||||||
Total assets | $ 2,539,693 | $ 2,526,494 | $ 2,747,289 | $ 1,618,841 | ||||||
Total deposits | 2,153,772 | 2,147,200 | 2,299,898 | 1,355,717 | ||||||
Total borrowings and securities sold under agreements to repurchase | 98,498 | 95,060 | 149,444 | 84,537 | ||||||
Total stockholders' equity | 261,559 | 256,502 | 256,640 | 165,794 | ||||||
Goodwill and other intangible assets | 24,638 | 24,693 | 24,243 | 14,806 | ||||||
Tangible equity - Non-GAAP (9) | 236,921 | 231,809 | 232,397 | 150,988 | ||||||
Tangible assets - Non-GAAP (9) | 2,515,055 | 2,501,801 | 2,723,046 | 1,604,035 | ||||||
Shares outstanding at period end | 12,007,187 | 12,007,187 | 11,971,399 | 7,183,800 | ||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
September 30, 2011 |
June 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
||||||
Selected Income Statement Data: | ||||||||||
Interest income | $ 30,215 | $ 30,409 | $ 18,896 | $ 90,893 | $ 54,953 | |||||
Interest expense | 6,316 | 6,075 | 5,525 | 18,256 | 16,630 | |||||
Net interest income | 23,899 | 24,334 | 13,371 | 72,637 | 38,323 | |||||
Provision for loan losses | 1,300 | 1,500 | 1,600 | 4,450 | 4,950 | |||||
Noninterest income | 5,683 | 4,858 | 2,978 | 15,853 | 7,349 | |||||
Noninterest expense | 19,375 | 22,759 | 10,950 | 69,714 | 32,465 | |||||
Net income before income taxes | 8,907 | 4,933 | 3,799 | 14,326 | 8,257 | |||||
Income tax expense | 2,686 | 1,476 | 1,275 | 4,308 | 2,647 | |||||
Less: Income from non-controlling interest | 2 | (53) | 22 | 71 | 26 | |||||
Net income | $ 6,219 | $ 3,510 | $ 2,502 | $ 9,947 | $ 5,584 | |||||
Operating Income - Non-GAAP (9) | $ 6,199 | $ 4,129 | $ 2,619 | $ 11,460 | $ 6,532 | |||||
Per Share Data: | ||||||||||
Weighted average shares outstanding - basic | 12,007,187 | 11,996,283 | 7,144,685 | 11,993,204 | 7,134,611 | |||||
Weighted average shares outstanding - diluted | 12,016,724 | 11,999,772 | 7,144,721 | 11,999,215 | 7,137,508 | |||||
Book value per share | $ 21.78 | $ 21.36 | $ 23.08 | $ 21.78 | $ 23.08 | |||||
Tangible book value per share - Non-GAAP (9) | $ 19.73 | $ 19.31 | $ 21.02 | $ 19.73 | $ 21.02 | |||||
Basic earnings per share | $ 0.52 | $ 0.29 | $ 0.35 | $ 0.83 | $ 0.78 | |||||
Diluted earnings per share | $ 0.52 | $ 0.29 | $ 0.35 | $ 0.83 | $ 0.78 | |||||
Diluted operating income per share - Non-GAAP (9) | $ 0.52 | $ 0.33 | $ 0.37 | $ 0.96 | $ 0.91 | |||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
September 30, 2011 |
June 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
||||||
Performance Ratios: | ||||||||||
Return on average assets | 0.97% | 0.55% | 0.62% | 0.51% | 0.48% | |||||
Return on average equity | 9.52% | 5.51% | 5.98% | 5.18% | 4.52% | |||||
Return on average tangible equity (Non-GAAP) (9) | 11.10% | 6.70% | 6.99% | 6.36% | 5.42% | |||||
Net interest margin | 4.17% | 4.23% | 3.64% | 4.21% | 3.66% | |||||
Efficiency ratio (2) | 65.50% | 77.96% | 67.32% | 78.78% | 71.28% | |||||
Non-interest income to average assets | 0.89% | 0.76% | 0.76% | 0.82% | 0.65% | |||||
Non-interest expenses to average assets | 3.03% | 3.55% | 2.74% | 3.59% | 2.81% | |||||
Operating Performance Ratios (Non-GAAP) (9): | ||||||||||
Return on average assets | 0.97% | 0.64% | 0.65% | 0.59% | 0.56% | |||||
Return on average equity | 9.49% | 6.48% | 6.26% | 5.97% | 5.29% | |||||
Return on average tangible equity (Non-GAAP) | 11.07% | 7.77% | 7.30% | 7.24% | 6.14% | |||||
Net interest margin | 4.17% | 4.23% | 3.64% | 4.21% | 3.66% | |||||
Efficiency ratio (2) | 65.56% | 75.84% | 66.61% | 77.07% | 69.22% | |||||
Noninterest income to average assets | 0.89% | 0.76% | 0.76% | 0.82% | 0.65% | |||||
Noninterest expenses to average assets | 3.04% | 3.41% | 2.72% | 3.47% | 2.71% | |||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
|||||||
Asset Quality Ratios: | . | |||||||||
Allowance for loan losses to total loans (6) | 0.58% | 0.59% | 0.64% | 0.96% | ||||||
Adjusted (Non-GAAP) allowance for loan losses to total loans (6) (8) | 1.36% | 1.49% | 1.66% | 1.07% | ||||||
Non-accrual loans to total loans (6) (7) | 1.12% | 1.68% | 0.82% | 1.04% | ||||||
Net charge-offs to average loans (3) | 0.24% | 0.92% | 0.71% | 0.16% | ||||||
Non-performing assets to total assets (4) | 1.30% | 1.64% | 0.87% | 1.00% | ||||||
Non-performing loans to total loans (5) (6) | 1.40% | 1.89% | 0.89% | 1.15% | ||||||
Allowance for loan losses to non-performing loans (5) | 41.64% | 31.38% | 73.40% | 83.19% | ||||||
Adjusted (Non-GAAP) allowance for loan losses to non-performing loans (5) (8) | 96.55% | 78.51% | 186.69% | 93.07% | ||||||
Capital Ratios: | ||||||||||
Total capital (to risk-weighted assets) | 13.48% | 13.53% | 13.24% | 13.20% | ||||||
Tier 1 capital (to risk-weighted assets) | 12.34% | 12.17% | 11.83% | 11.14% | ||||||
Tier 1 capital (to average assets) | 9.96% | 9.65% | 13.45% | 9.45% | ||||||
Tangible equity to tangible assets - Non-GAAP (9) | 9.42% | 9.27% | 8.53% | 9.41% | ||||||
(1) The credit fair value adjustment relates to the risk of credit loss related to the non-impaired portfolio of purchased loans acquired through the merger between Tower Bancorp. Inc. and Graystone Financial Corp and loans acquired through the acquisition of First Chester County Corporation. It does not include the credit fair value adjustment of purchased impaired loans accounted for under ASC 310-30 (Statement of Position (SOP) 03-3). | ||||||||||
(2) Efficiency ratio is calculated as total noninterest expense divided by the total of net interest income and noninterest income. | ||||||||||
(3) Calculated as the annualized net loans charged off during the quarter ended divided by the average loans outstanding for the same quarter. | ||||||||||
(4) Non-performing assets equals the sum of non-accrual loans, loans past due 90 days or greater that are still accruing, and other real estate owned. Purchased impaired loans accounted for under ASC 310-30 are excluded from non-performing assets. | ||||||||||
(5) Non-performing loans equals the sum of non-accrual loans and loans past due 90 days or greater that are still accruing. Purchased impaired loans accounted for under ASC 310-30 are excluded from non-performing loans. | ||||||||||
(6) Total loans excludes purchased impaired loans accounted for under ASC 310-30 acquired as part of mergers and acquisitions. The total balance of these loans, net of fair value mark, is $54.7 million as of September 30, 2011, $58.0 million as of June 30, 2011, $61.6 million as of December 31, 2010, and $6.5 million as of September 30, 2010. | ||||||||||
(7) Non-accrual loans equals the sum of loans that have been placed on non-accrual status. Purchased impaired loans accounted for under ASC 310-30 are excluded from non-accrual loans. | ||||||||||
(8) Adjusted (Non-GAAP) allowance for loan losses includes the allowance for loan loss and the credit fair value adjustment to the risk of credit loss related to the non-impaired portfolio of purchased loans acquired through mergers and acquisitions. | ||||||||||
(9) This measure is considered to be a Non-GAAP measure. See the reconciliation of GAAP to Non-GAAP measures in the tables at the end of this release. |
Tower Bancorp, Inc. and Subsidiary | |||||
Loan and Deposit Detail | |||||
(Dollars in thousands) | |||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010* |
September 30, 2010 |
||
Loan detail: | (Unaudited) | (Unaudited) | (Unaudited) | ||
Commercial: | |||||
Industrial | $ 1,080,084 | $ 1,048,996 | $ 1,073,666 | $ 707,114 | |
Real estate | 315,201 | 304,025 | 305,423 | 179,064 | |
Construction | 184,466 | 195,741 | 183,729 | 138,863 | |
Consumer: | |||||
Home equity | 175,749 | 167,306 | 163,905 | 85,921 | |
Other | 61,024 | 63,421 | 65,305 | 34,100 | |
Residential mortgage | 247,337 | 260,099 | 280,154 | 176,555 | |
Total loans | 2,063,861 | 2,039,588 | 2,072,182 | 1,321,617 | |
Deferred costs (fees) | 364 | 279 | 62 | (80) | |
Allowance for loan losses | (11,925) | (11,869) | (14,053) | (12,717) | |
Net loans | $ 2,052,300 | $ 2,027,998 | $ 2,058,191 | $ 1,308,820 | |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
||
Deposit detail: | (Unaudited) | (Unaudited) | (Unaudited) | ||
Noninterest bearing transaction accounts | $ 292,619 | $ 304,541 | $ 301,210 | $ 125,174 | |
Interest checking accounts | 346,759 | 332,621 | 305,701 | 124,106 | |
Money market accounts | 501,651 | 526,025 | 651,760 | 604,151 | |
Savings accounts | 152,889 | 161,481 | 160,305 | 70,138 | |
Time deposits | 859,855 | 822,532 | 880,922 | 432,148 | |
Total deposits | $ 2,153,773 | $ 2,147,200 | $ 2,299,898 | $ 1,355,717 | |
* Amounts have been reclassified in order to be comparable to the amounts disclosed as of September 30, 2011, and June 30, 2011 |
Tower Bancorp, Inc. and Subsidiary | ||||
Non-Performing Assets Detail | ||||
(Dollars in thousands) | ||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
|
Non-accrual loans | (Unaudited) | (Unaudited) | (Unaudited) | |
Commercial: | ||||
Industrial | $ 13,654 | $ 24,172 | $ 6,320 | $ 4,697 |
Real estate | 2,488 | 2,191 | 2,426 | 1,643 |
Construction | 2,367 | 2,524 | 6,011 | 5,235 |
Consumer: | ||||
Home equity | 220 | 218 | 115 | 54 |
Other | 232 | 370 | 66 | 70 |
Residential mortgage | 3,842 | 4,050 | 2,784 | 2,058 |
Total non-accrual loans | 22,803 | 33,525 | 17,722 | 13,757 |
Accruing loans greater than 90 days past due | ||||
Commercial: | ||||
Industrial | 2,771 | 2,781 | -- | -- |
Real estate | -- | -- | 5 | -- |
Construction | -- | -- | -- | -- |
Consumer: | ||||
Home equity | 226 | 89 | 351 | 293 |
Other | 569 | 183 | 251 | 264 |
Residential mortgage | 2,271 | 1,250 | 818 | 972 |
Total accruing loans greater than 90 days past due | 5,837 | 4,303 | 1,425 | 1,529 |
Non-performing loans | 28,640 | 37,828 | 19,147 | 15,286 |
Other real estate owned | 4,293 | 3,520 | 4,647 | 879 |
Non-performing assets | $ 32,933 | $ 41,348 | $ 23,794 | $ 16,165 |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
|
(Unaudited) | (Unaudited) | (Unaudited) | ||
Accruing loans 30 to 89 days past due | $ 20,291 | $ 18,219 | $ 30,865 | $ 11,388 |
Accruing loans greater than 90 days past due | 5,837 | 4,303 | 1,425 | 1,528 |
Non-accrual loans | 22,803 | 33,525 | 17,722 | 13,757 |
Total delinquencies | $ 48,931 | $ 56,047 | $ 50,012 | $ 26,673 |
Tower Bancorp, Inc. and Subsidiary | ||||
Allowance for Loan Losses Quarterly Rollforward | ||||
(Dollars in thousands) | ||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
|
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Balance, beginning of quarter | $ 11,869 | $ 15,116 | $ 12,717 | $ 11,619 |
Provision for loan losses | 1,300 | 1,500 | 4,100 | 1,600 |
Charge-offs | ||||
Commercial: | ||||
Industrial | (502) | (409) | (1,460) | (113) |
Real estate | -- | -- | (574) | -- |
Construction | -- | (4,250) | (431) | -- |
Consumer: | ||||
Home equity | -- | -- | (55) | (65) |
Other | (437) | (38) | -- | (62) |
Residential mortgage | (323) | (81) | (255) | (271) |
Total charge-offs | (1,262) | (4,778) | (2,775) | (511) |
Recoveries | ||||
Commercial: | ||||
Industrial | 18 | 14 | 7 | 6 |
Real estate | -- | -- | -- | -- |
Construction | -- | -- | -- | -- |
Consumer: | ||||
Home equity | -- | 8 | -- | -- |
Other | -- | 9 | 3 | 1 |
Residential mortgage | -- | -- | 1 | 2 |
Total recoveries | 18 | 31 | 11 | 9 |
Net charge-offs | (1,244) | (4,747) | (2,764) | (502) |
Balance, end of quarter | $ 11,925 | $ 11,869 | $ 14,053 | $ 12,717 |
Tower Bancorp, Inc. and Subsidiary | ||||
Condensed Statement of Operations by Segment | ||||
(Dollars in thousands) | ||||
(Unaudited) | ||||
Three Months Ended September 30, 2011 | ||||
Banking Segment |
Residential Mortgage Segment |
Elimination | Total | |
Interest income | $ 29,823 | $ 547 | $ (155) | $ 30,215 |
Interest expense | 6,310 | 161 | (155) | 6,316 |
Net interest income | 23,513 | 386 | -- | 23,899 |
Provision for loan losses | 1,300 | -- | -- | 1,300 |
Noninterest income | 4,597 | 1,086 | -- | 5,683 |
Noninterest expense | 17,910 | 1,496 | -- | 19,406 |
Merger related expenses and restructuring charges | (46) | 15 | -- | (31) |
Net income (loss) before income taxes | 8,946 | (39) | -- | 8,907 |
Income tax expense (benefit) | 2,704 | (18) | 2,686 | |
Net income (loss) including noncontrolling interest | 6,243 | (22) | -- | 6,221 |
Less: Income from non-controlling interest | -- | 2 | -- | 2 |
Net income (loss) | $ 6,243 | $ (24) | $ -- | $ 6,219 |
Nine Months Ended September 30, 2011 | ||||
Banking Segment |
Residential Mortgage Segment |
Elimination | Total | |
Interest income | $ 89,401 | $ 2,353 | $ (861) | $ 90,893 |
Interest expense | 18,186 | 931 | (861) | 18,256 |
Net interest income | 71,215 | 1,422 | -- | 72,637 |
Provision for loan losses | 4,450 | -- | -- | 4,450 |
Noninterest income | 12,154 | 3,699 | -- | 15,853 |
Noninterest expense | 56,891 | 10,495 | -- | 67,386 |
Merger related expenses and restructuring charges | 1,624 | 704 | -- | 2,328 |
Net income (loss) before income taxes | 20,404 | (6,078) | -- | 14,326 |
Income tax expense (benefit) | 6,134 | (1,826) | -- | 4,308 |
Net income (loss) including noncontrolling interest | 14,270 | (4,252) | -- | 10,018 |
Less: Income from non-controlling interest | 4 | 67 | -- | 71 |
Net income (loss) | $ 14,266 | $ (4,319) | $ -- | $ 9,947 |
Tower Bancorp, Inc. and Subsidiary | |||||
Reconciliation of GAAP to Non-GAAP Measures | |||||
(Dollars in thousands, except share data and ratios) | |||||
(Unaudited) | |||||
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
||
Reconciliation of Non-GAAP Balance Sheet Data: | |||||
Total assets - GAAP | $ 2,539,693 | $ 2,526,494 | $ 2,747,289 | $ 1,618,841 | |
Less: Goodwill and other intangible assets | 24,638 | 24,693 | 24,243 | 14,806 | |
Total tangible assets - Non-GAAP | $ 2,515,055 | $ 2,501,801 | $ 2,723,046 | $ 1,604,035 | |
Total Stockholders' equity - GAAP | $ 261,559 | $ 256,502 | $ 256,640 | $ 165,794 | |
Less: Goodwill and other intangible assets | 24,638 | 24,693 | 24,243 | 14,806 | |
Tangible equity - Non-GAAP | $ 236,921 | $ 231,809 | $ 232,397 | $ 150,988 | |
For the Three Months Ended | For the Nine Months Ended | ||||
September 30, 2011 |
June 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
|
Reconciliation of Non-GAAP Income Statement Data: | |||||
Net income - GAAP | $ 6,219 | $ 3,510 | $ 2,502 | $ 9,947 | $ 5,584 |
Plus: Merger related expenses | (92) | 538 | 117 | 693 | 304 |
Plus: Restructuring charges | 61 | 414 | -- | 1,635 | -- |
Plus: Impairment of fixed assets | -- | -- | -- | -- | 920 |
Less: Tax effect of adjustments | 11 | (333) | -- | (815) | (276) |
Operating income - Non-GAAP | $ 6,199 | $ 4,129 | $ 2,619 | $ 11,460 | $ 6,532 |
Per Share Data: | |||||
Book value per share - GAAP | $ 21.78 | $ 21.36 | $ 23.08 | $ 21.78 | $ 23.08 |
Per share effect of intangible assets | (2.05) | (2.05) | (2.06) | (2.05) | (2.06) |
Tangible book value per share - Non-GAAP | $ 19.73 | $ 19.31 | $ 21.02 | $ 19.73 | $ 21.02 |
Diluted earnings per share - GAAP | $ 0.52 | $ 0.29 | $ 0.35 | $ 0.83 | $ 0.78 |
Plus: Per share impact of merger related expenses | (0.01) | 0.04 | 0.02 | 0.06 | 0.04 |
Plus: Per share impact of restructuring charges | 0.01 | 0.03 | -- | 0.14 | -- |
Plus: Per share impact of impairment on fixed assets | -- | -- | -- | -- | 0.13 |
Less: Per share impact of tax effect of adjustments | -- | (0.03) | -- | (0.07) | (0.04) |
Diluted operating income per share - Non-GAAP | $ 0.52 | $ 0.33 | $ 0.37 | $ 0.96 | $ 0.91 |
Tower Bancorp, Inc. and Subsidiary | |||||
Reconciliation of GAAP to Non-GAAP Measures | |||||
(Dollars in thousands, except share data and ratios) | |||||
(Unaudited) | |||||
For the Three Months Ended | For the Nine Months Ended | ||||
September 30, 2011 |
June 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
|
Performance Ratios: | |||||
Return on average assets - GAAP | 0.97% | 0.55% | 0.62% | 0.51% | 0.48% |
Effect of Non-GAAP adjustments to net (loss) income | 0.00% | 0.09% | 0.03% | 0.08% | 0.08% |
Operating return on average assets - Non-GAAP | 0.97% | 0.64% | 0.65% | 0.59% | 0.56% |
Return on average equity - GAAP | 9.52% | 5.51% | 5.98% | 5.18% | 4.52% |
Effect of Non-GAAP adjustments to net (loss) income | -0.03% | 0.97% | 0.28% | 0.79% | 0.77% |
Operating return on average equity - Non-GAAP | 9.49% | 6.48% | 6.26% | 5.97% | 5.29% |
Return on average equity - GAAP | 9.52% | 5.51% | 5.98% | 5.18% | 4.52% |
Effect of goodwill and other intangible assets | 1.58% | 1.19% | 1.01% | 1.18% | 0.90% |
Return on average tangible equity - Non -GAAP | 11.10% | 6.70% | 6.99% | 6.36% | 5.42% |
Return on average tangible equity - Non -GAAP | 11.10% | 6.70% | 6.99% | 6.36% | 5.42% |
Effect of Non-GAAP adjustments to net (loss) income | -0.03% | 1.07% | 0.31% | 0.88% | 0.72% |
Operating return on average tangible equity - Non-GAAP | 11.07% | 7.77% | 7.30% | 7.24% | 6.14% |
Efficiency ratio - GAAP | 65.50% | 77.96% | 67.32% | 78.78% | 71.28% |
Effect of Non-GAAP adjustments to net (loss) income | 0.06% | -2.12% | -0.71% | -1.71% | -2.06% |
Operating efficiency ratio - Non-GAAP | 65.56% | 75.84% | 66.61% | 77.07% | 69.22% |
Non-interest expenses to average assets - GAAP | 3.03% | 3.55% | 2.74% | 3.59% | 2.81% |
Effect of Non-GAAP adjustments to net (loss) income | 0.01% | -0.14% | -0.02% | -0.12% | -0.10% |
Operating non-interest expenses to average assets - Non-GAAP | 3.04% | 3.41% | 2.72% | 3.47% | 2.71% |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
||
Asset Quality Ratios | |||||
Allowance for loan loss to total loans - GAAP | 0.58% | 0.59% | 0.64% | 0.96% | |
Effect of Non-GAAP adjustment | 0.78% | 0.90% | 1.02% | 0.11% | |
Adjusted (non-GAAP) allowance for loan loss to total loans | 1.36% | 1.49% | 1.66% | 1.07% | |
Allowance for loan loss to non performing loans - GAAP | 41.64% | 31.38% | 73.40% | 83.19% | |
Effect of Non-GAAP adjustment | 54.91% | 47.13% | 113.29% | 9.88% | |
Adjusted (non-GAAP) allowance for loan loss to non-performing loans | 96.55% | 78.51% | 186.69% | 93.07% | |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
September 30, 2010 |
||
Capital Ratios: | |||||
Total equity to total assets - GAAP | 10.30% | 10.15% | 9.34% | 10.24% | |
Effect of intangible assets | -0.88% | -0.88% | -0.81% | -0.83% | |
Tangible common equity to tangible assets -Non-GAAP | 9.42% | 9.27% | 8.53% | 9.41% |