CHARLOTTE, N.C., Feb. 8, 2013 (GLOBE NEWSWIRE) -- Park Sterling Corporation (Nasdaq:PSTB), the holding company for Park Sterling Bank, today released unaudited results of operations and other financial information for the fourth quarter of 2012. Highlights at and for the three months ended December 31, 2012 include:
Highlights
- Net income available to common shareholders of $1.3 million, or $0.03 per share
- Net income available to common shareholders, excluding merger-related expenses, of $3.5 million, or $0.08 per share
- Increase in net interest margin to 4.36% from 3.97% at September 30, 2012
- Increase in net interest margin, excluding accelerated mark accretion, to 4.13% from 3.98% at September 30, 2012
- Decrease in nonperforming loans to 1.31% of total loans from 2.45% at September 30, 2012
- Decrease in nonperforming assets to 2.13% of total assets from 2.74% at September 30, 2012
- Strong capitalization, with tangible common equity to tangible assets of 11.11%
- Completed merger with Citizens South Banking Corporation on October 1, 2012
"Park Sterling's fourth quarter marked the successful consummation of our merger with Citizens South and continued progress toward achieving our vision of creating a regional-sized community bank in the Carolinas and Virginia," said James C. Cherry, Chief Executive Officer. "We reported record operating results, with adjusted net income available to common shareholders, which excludes merger-related expenses and gain on sale of securities, increasing 257% to $3.5 million, or $0.08 per share, for the three months ended December 31, 2012. Our metropolitan markets led the effort in generating $12.0 million in organic loan growth during the period, representing a 13% annualized growth rate. We also posted continued organic growth in both our mortgage banking and wealth management operations. In addition, we benefited from reaching our targeted $2.5 million in quarterly cost savings from the merger with Citizens South, and are now well positioned to invest future savings in new growth opportunities.
"Asset quality continued to improve during the fourth quarter. While the absolute level of nonperforming loans increased as a result of the merger with Citizens South, this level decreased as a percentage of total loans from 2.45% at September 30, 2012 to 1.31% at December 31, 2012. Nonperforming assets similarly increased on an absolute basis, but decreased as a percentage of total assets from 2.74% to 2.13%. Approximately 63% of Park Sterling's loans now carry acquisition accounting related net fair market value adjustments, which we believe will help buffer future results against potential loan losses. The combination of our normal allowance and these loan marks represented 4.73% of total loans at year-end. Net charge-offs for the year represented a modest 0.18% of average loans, and we actually posted a small net recovery of 0.03% in the fourth quarter. We believe this mixture of good asset quality and sound reserve levels, combined with our strong capital position and liquidity, provides an excellent foundation for future growth.
"Park Sterling is now the largest community bank headquartered in the attractive Charlotte-Gastonia-Rock Hill MSA, with a strong deposit franchise extending through the Upstate region of South Carolina and into North Georgia, and an expanding presence in the important growth markets of Raleigh and Wilmington, North Carolina, and Greenville and Charleston, South Carolina. Our asset-based lending and residential construction groups offer specialized avenues to originate attractive risk-return loans in this highly competitive environment. Further, our treasury management, wealth management and mortgage banking capabilities provide significant opportunities to diversify revenues away from traditional lending activities. We believe that together, Park Sterling's appealing footprint, broad product capabilities, good asset quality, strong balance sheet and exceptional bankers position us for continued success."
Fourth Quarter 2012 Financial Results
Income Statement
Three Month Results
Park Sterling reported a 105% increase in net income available to common shareholders to $1.3 million, or $0.03 per share, for the three months ended December 31, 2012 ("2012Q4"). This compares to net income of $620,000, or $0.02 per share, for the three months ended September 30, 2012 ("2012Q3") and a net loss of $982,000, or $0.03 per share, for the three months ended December 31, 2011 ("2011Q4"). The increase in reported net income from the prior periods resulted primarily from increased earning assets, higher net interest margin and higher noninterest income associated with the merger with Citizens South Banking Corporation, which was completed on October 1, 2012. Net income for 2011Q4 included two months of results from the merger with Community Capital Corporation, which was completed on November 1, 2011.
Park Sterling reported a 257% increase in adjusted net income available to common shareholders, which excludes merger related expenses and gain on sale of securities, to a record $3.5 million, or $0.08 per share, for 2012Q4. This compares to adjusted net income of $987,000, or $0.03 per share, for 2012Q3 and of $432,000, or $0.01 per share, for 2011Q4. There was no gain on the sale of securities in either 2012Q4 or 2011Q4. The increase in adjusted net income from the prior periods again reflects improvements associated with the merger with Citizens South, combined with continued organic growth.
Net interest income totaled $19.5 million for 2012Q4, which represented a $9.6 million, or 96%, increase from $10.0 million for 2012Q3, and an $11.7 million, or 150%, increase from $7.8 million for 2011Q4. Average earning assets increased $784.3 million, or 79%, from 2012Q3 to $1.8 billion at 2012Q4, which included a $669.2 million, or 93%, increase in average loans to $1.4 billion. Average earning assets increased $944.5 million, or 113%, from 2011Q4, which included a $765.2 million, or 123%, increase in average loans.
Net interest margin was 4.36% in 2012Q4, representing a 39 basis point improvement from 3.97% in 2012Q3 and a 66 basis point improvement from 3.70% in 2011Q4. Adjusted net interest margin, which excludes accelerated interest income, was 4.13% in 2012Q4, representing a 15 basis point improvement from 3.98% in 2012Q3 and a 43 basis point improvement from 3.70% in 2011Q4. The accelerated interest income, which totaled $1.0 million in 2012Q4 compared to a $17,000 reversal in 2012Q3, includes $921,000 of accelerated accretion from credit and interest rate marks associated with acquisition accounting adjustments for performing acquired loans, as accounted for under the contractual cash flow method of accounting, and $121,000 in other accretion adjustments. The accelerated accretion of credit and interest rate marks resulted from borrowers repaying performing acquired loans faster than required by their contractual terms and/or restructuring loans in such a way as to effectively result in a new loan under the contractual cash flow method of accounting, both of which result in the associated remaining credit and interest rate marks being fully accreted into interest income.
Provision for loan losses was $994,000 for 2012Q4, compared to $7,000 for 2012Q3 and $1.1 million for 2011Q4. Fourth quarter 2012 results included $906,000 of provision expense associated with acquired loans, comprised of a $676,000 impairment in two of the company's six purchase credit impaired (PCI) loan pools and a $230,000 qualitative allowance associated with performing loans acquired in the merger with Citizens South. The remaining increase in provision expense in 2012Q4 resulted from higher non-acquired loan balances. Fourth quarter 2011 results included $187,000 of provision expense associated with acquired loans, comprised of a $37,000 impairment in the company's PCI loan pools and a $150,000 qualitative allowance associated with performing loans acquired in the merger with Community Capital.
Noninterest income was $3.8 million in 2012Q4, compared to $3.3 million in 2012Q3 and $1.4 million in 2011Q4. Adjusted noninterest income, which excludes gain on sale of securities, increased $1.5 million, or 64%, to $3.8 million in 2012Q4, compared to $2.3 million in 2012Q3. This improvement reflects both the merger with Citizens South and continued organic growth in both the company's mortgage banking and wealth management operations. Mortgage banking, which also benefited from the merger with Citizens South, reported a $153,000, or 23%, increase in revenues to $815,000, and wealth management reported a $28,000, or 4%, increase in revenues to $693,000.
Noninterest expenses totaled $20.3 million in 2012Q4, compared to $12.2 million in 2012Q3 and $10.0 million in 2011Q4. Adjusted noninterest expenses, which excludes merger-related expenses of $3.2 million, $1.4 million and $2.6 million, respectively, increased $6.2 million, or 58%, to $17.1 million in 2012Q4 compared to $10.8 million in 2012Q3, and increased $9.7 million, or 131%, compared to $7.4 million in 2011Q4. The increase from 2012Q3 again resulted primarily from the merger with Citizens South, while the inclusion of a full quarter of results from Community Capital and organic growth efforts also contributed to the increase from 2011Q4. Management remains comfortable in the company's ability to achieve our targeted $10.2 million in sustainable annual cost savings from the merger with Citizens South by the end of 2013.
Twelve Month Results
Park Sterling reported net income available to common shareholders of $4.3 million, or $0.12 per share, for the twelve months ended December 31, 2012, compared to a net loss of $8.4 million, or $0.29 per share, for the twelve months ended December 31, 2011. Results for 2012 included three months of operations from the merger with Citizens South and a full year of operations from Community Capital. Results for 2011 included two months of operations from the merger with Community Capital.
The company reported adjusted net income available to common shareholders of $7.5 million, or $0.21 per share, in 2012, compared to a net loss of $5.9 million, or $0.21 per share, in 2011. Net interest income increased $31.9 million, or 165%, from 2011, primarily as a result of higher levels of average earning assets from both acquired operations and organic loan growth. Net interest margin increased 128 basis points to 4.27% in 2012 compared to 2.99% in 2011, primarily as a result of higher yielding assets from the mergers, including accretion of acquisition accounting net fair market value adjustments, and improved liability mix and pricing. Noninterest income increased $10.0 million, or 621%, to $11.6 million in 2012 from $1.6 million in 2011, driven both by acquired operations and organic growth. Adjusted noninterest income increased $8.5 million, or 537%, to $10.1 million in 2012 from $1.6 million in 2011. Noninterest expense increased $29.3 million, or 118%, to $54.3 million in 2012 from $24.9 million in 2011, again driven both by acquired operations and organic growth. Adjusted noninterest expenses increased $27.3 million, or 129%, to $48.4 million in 2012 from $21.1 million in 2011.
Balance Sheet
Total assets increased $922 million, or 83%, to $2.0 billion at 2012Q4 compared to total assets of $1.1 billion at 2012Q3, primarily as a result of the merger with Citizens South. Cash and equivalents increased $77.7 million, or 73%, to $184.2 million. Securities increased $61.6 million, or 32%, to $253.0 million. Total loans, which exclude loans held for sale, increased $648.6 million, or 92%, to $1.4 billion, including $101.4 million in covered loans associated with the two failed bank transactions acquired with Citizens South. Park Sterling posted $12.0 million, or 3% (13% annualized), in organic loan growth in 2012Q4. New loan origination remains somewhat tempered as a result of aggressive competition in the market with respect to term structure and interest rates, and continued general softness in the economy.
The merger with Citizens South led to a shift in loan mix during the fourth quarter. Total consumer loans increased from 25% of total loans at 2012Q3 to 31% of total loans at 2012Q4. This shift was driven by an increase in residential mortgages from 8% to 14% of total loans. Home equity lines of credit and residential construction loans remained flat at 12% and 4% of total loans, respectively. The combination of commercial and industrial and owner-occupied real estate loans remained the largest category of loans at $418.7 million, or 31%, of total loans at 2012Q4, but declined from 33% of total loans at 2012Q3. Investor owned commercial real estate totaled $372.4 million at 2012Q4, representing 27% of total loans compared to 29% at 2012Q3. Acquisition, construction and development loans totaled $140.5 million at 2012Q4, representing 10% of total loans compared to 11% at 2012Q3.
The merger with Citizens South also led to a shift in deposit mix during the fourth quarter. Total deposits increased $800.3 million, or 96%, to $1.6 billion at 2012Q4 compared to $831.7 million at 2012Q3. Noninterest bearing demand deposits increased $77.6 million, or 47%, to $243.5 million at 2012Q4, but declined from 20% of total deposits at 2012Q3 to 15% of total deposits at 2012Q4. Money market, NOW and savings deposits increased $417.0 million, or 122%, to $758.8 million at 2012Q4, and represented 46% of total deposits compared to 41% at 2012Q3. Non-brokered time deposits increased $326.3 million, or 170%, to $518.7 million at 2012Q4, and represented 32% of total deposits compared to 23% at 2012Q3. Finally, brokered deposits decreased $20.5 million, or 16%, to $111.0 million at 2012Q4, and represented 7% of total deposits compared to 16% at 2012Q3.
Total borrowings increased $33.0 million, or 48%, to $101.7 million at 2012Q4 compared to $68.7 million at 2012Q3, including borrowings assumed in the merger with Citizens South. Borrowings at 2012Q4 included $70.0 million in Federal Home Loan Bank borrowings, $14.7 million of acquired trust preferred securities, net of acquisition accounting fair market value adjustments, and $6.9 million of Tier 2-eligible subordinated debt.
Total shareholders' equity increased $79.7 million, or 41%, to $275.5 million at 2012Q4 compared to $195.8 million at 2012Q3. This included $20.5 million of preferred stock issued in association with the Citizens South merger upon conversion of its preferred stock previously issued to the United States Department of the Treasury in connection with its participation in the Small Business Lending Fund. Common shareholders equity increased $59.2 million, or 30%, to $255.0 million. This increase primarily resulted from the issuance of 11,857,266 shares of Park Sterling's common stock, valued at $58.6 million (based on the $4.94 per share closing price on the last trading day prior to consummation), as the stock component of consideration for the merger with Citizens South. The company's ratio of tangible common equity to tangible assets remained strong, but did decrease to 11.11% at 2012Q4 from 17.31% at 2012Q3 as a result of more effectively leveraging capital through the merger. Similarly, the Tier 1 leverage ratio remained strong, but did decrease to 11.25% at 2012Q4 from 15.39% at 2012Q3.
The merger with Citizens South led to a net $5.9 million increase in core deposit intangibles and a $22.5 million increase in goodwill in 2012Q4. This represents a $7.6 million increase from earlier estimates, primarily as a result of a reduction in anticipated positive fair market value accounting adjustments associated with the two FDIC loss share agreements assumed in connection with the merger. The reduction in anticipated positive adjustments resulted from improved estimated performance in the underlying covered loan and OREO portfolios, which suggests a reduced need for loss share reimbursements over the life of the agreements.
Asset Quality
Asset quality continued to improve in the fourth quarter, reflecting stabilizing economic conditions in the company's markets, continued management focus on problem assets and continued discipline in the origination of new loans. As a result of the merger with Citizens South, nonperforming loans increased in absolute level by $472,000, or 3%, to $17.8 million at 2012Q4, compared to $17.3 million at 2012Q3. However, nonperforming loans declined on a percentage basis over that same period to 1.31% of total loans in 2012Q4 from 2.45% in 2012Q3. Nonperforming loans totaled $20.2 million at 2011Q4 and represented 2.66% of total loans.
Similarly, nonperforming assets increased in absolute level by $12.8 million, or 42%, to $43.2 million at 2012Q4 compared to $30.4 million at 2012Q3. However, nonperforming assets declined on a percentage basis over that same period to 2.13% of total assets in 2012Q4 from 2.74% in 2012Q3. In addition, approximately half of the dollar increase in nonperforming assets from Citizens South can be attributed to $6.7 million in covered OREO, for which the company expects certain losses to be reimbursed under the FDIC loss share agreements. Nonperforming assets totaled $36.2 million at 2011Q4 and represented 3.25% of total assets.
The company reported a net recovery of $390,000 in 2012Q4, or 0.03% of average loans (annualized), compared to net charge-offs of $231,000 in 2012Q3, or 0.13% of average loans (annualized), and net charge-offs of $789,000 in 2011Q4, or 0.51% of average loans (annualized). For the full year, the company reported net charge-offs of $1.6 million in 2012, or 0.18% of average loans, compared to net charge-offs of $11.7 million in 2011, or 6.06% of average loans.
The allowance for loan losses was $10.6 million, or 0.78% of total loans at 2012Q4, compared to $9.2 million, or 1.30% of total loans at 2012Q3 and $10.2 million, or 1.34% of total loans at 2011Q4. The increase in the absolute level of allowance in 2012Q4 from 2012Q3 primarily reflects the earlier discussed $676,000 increase related to impairments in purchase credit impaired pools and $230,000 increase in the qualitative allowance component associated with acquired performing loans. The decrease in percentage of total loans reflects the inclusion of acquired loans, for which no allowance is provided under generally accepted accounting principles. Adjusted allowance for loan losses, which includes the allowance for loan losses and acquisition accounting related net fair market value adjustments for acquired loans, represented 4.73% of total loans in 2012Q4, compared to 4.34% in 2012Q3 and 5.97% in 2011Q4.
During the first quarter of 2011, and as contemplated in the 2010 equity offering, 568,260 shares of restricted stock were issued but will not vest until the company's share price achieves certain performance thresholds above the equity offering price (these restricted stock awards vest one-third each when the share price reaches, for 30 consecutive days, $8.125, $9.10 and $10.40 per share, respectively). These performance thresholds have not yet been achieved. Accordingly, these additional shares have been excluded from earnings and tangible book value per share calculations.
Conference Call
A conference call will be held at 8:30 a.m., Eastern Time this morning (February 8, 2013). The conference call can be accessed by dialing (877) 317-6789 and requesting the Park Sterling Corporation earnings call. Listeners should dial in 10 minutes prior to the start of the call. The live webcast and presentation slides will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations."
A replay of the webcast will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations" shortly following the call. A replay of the conference call can be accessed approximately one hour after the call by dialing (877) 344-7529 and requesting conference number 10009544.
About Park Sterling Corporation
Park Sterling Corporation, the holding company for Park Sterling Bank, is headquartered in Charlotte, North Carolina. Park Sterling, a regional community-focused financial services company with $2 billion in assets, is the largest community bank in the Charlotte area and has 44 banking offices stretching across the Carolinas and into North Georgia. The bank serves professionals, individuals, and small and mid-sized businesses by offering a full array of financial services, including deposit, mortgage brokerage, cash management, consumer and business finance, and wealth management. Park Sterling prides itself on being large enough to help customers achieve their financial aspirations, yet small enough to care that they do. Park Sterling is focused on building a banking franchise that is noted for sound risk management, strong community focus and exceptional customer service. For more information, visit www.parksterlingbank.com. Park Sterling Corporation shares are traded on NASDAQ under the symbol PSTB.
Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, adjusted net income (loss), adjusted net interest margin, adjusted noninterest income, adjusted noninterest expenses, asset quality measures including the effects of acquisition accounting fair market value adjustments (loan marks), and related ratios and per share measures, as used throughout this release, are non-GAAP financial measures. For additional information, see "Reconciliation of Non-GAAP Financial Measures" in the accompanying tables.
Cautionary Statement Regarding Forward Looking Statements
This news release contains, and Park Sterling and its management may make, certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often use words such as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," "goal," "target" and similar expressions. These forward-looking statements express management's current expectations or forecasts of future events, results and conditions, including financial and other estimates and expectations regarding the merger with Citizens South Banking Corporation; the general business strategy of engaging in bank mergers, organic growth, branch openings and closing, expansion or addition of product capabilities, expected footprint of the banking franchise and anticipated asset size; anticipated loan growth; changes in loan mix and deposit mix; capital and liquidity levels; net interest income, provision expense, noninterest income and noninterest expenses; credit trends and conditions, including loan losses, allowance for loan loss, charge-offs, delinquency trends and nonperforming asset levels; the amount, timing and prices of share repurchases; and other similar matters. These forward-looking statements are not guarantees of future results or performance and by their nature involve certain risks and uncertainties that are based on management's beliefs and assumptions and on the information available to Park Sterling at the time that these disclosures were prepared. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed in any of Park Sterling's filings with the SEC: failure to realize synergies and other financial benefits from the Citizens South merger within the expected time frames; increases in expected costs or decreases in expected savings or difficulties related to integration of the merger; inability to identify and successfully negotiate and complete additional combinations with potential merger partners or to successfully integrate such businesses into Park Sterling, including the company's ability to adequately estimate or to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combination; the effects of negative economic conditions or a "double dip" recession, including stress in the commercial real estate markets or delay or failure of recovery in the residential real estate markets; the impact of deterioration of the United States credit standing; changes in consumer and investor confidence and the related impact on financial markets and institutions; changes in interest rates; failure of assumptions underlying the establishment of allowances for loan losses; deterioration in the credit quality of the loan portfolio or in the value of the collateral securing those loans; deterioration in the value of securities held in the investment securities portfolio; fluctuations in the market price of the common stock, regulatory, legal and contractual requirements, other uses of capital, the company's financial performance, market conditions generally or modification, extension or termination of the authorization by the board of directors, in each case impacting purchases of common stock; legal and regulatory developments, including changes in the federal risk-based capital rules; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting, including acquisition accounting fair market value assumptions and accounting for purchased credit-impaired loans, and the impact on Park Sterling's financial statements; and management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.
Forward-looking statements speak only as of the date they are made, and Park Sterling undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
| PARK STERLING CORPORATION | |||||
| CONDENSED CONSOLIDATED INCOME STATEMENT | |||||
| THREE MONTH RESULTS | |||||
| ($ in thousands, except per share amounts) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Interest income | |||||
| Loans, including fees | $ 20,269 | $ 10,346 | $ 10,416 | $ 12,110 | $ 8,285 |
| Taxable investment securities | 792 | 826 | 969 | 1,020 | 795 |
| Tax-exempt investment securities | 191 | 187 | 186 | 185 | 183 |
| Nonmarketable equity securities | 80 | 22 | 28 | 64 | 43 |
| Interest on deposits at banks | 79 | 34 | 28 | 11 | 29 |
| Federal funds sold | 11 | 16 | 15 | 8 | 5 |
| Total interest income | 21,422 | 11,431 | 11,642 | 13,398 | 9,340 |
| Interest expense | |||||
| Money market, NOW and savings deposits | 491 | 339 | 333 | 326 | 269 |
| Time deposits | 777 | 632 | 720 | 821 | 836 |
| Short-term borrowings | 7 | -- | -- | 3 | 1 |
| FHLB advances | 143 | 149 | 148 | 161 | 135 |
| Subordinated debt | 472 | 340 | 341 | 367 | 286 |
| Total interest expense | 1,890 | 1,460 | 1,542 | 1,678 | 1,528 |
| Net interest income | 19,532 | 9,971 | 10,100 | 11,720 | 7,812 |
| Provision for loan losses | 994 | 7 | 899 | 123 | 1,110 |
| Net interest income after provision | 18,538 | 9,964 | 9,201 | 11,597 | 6,702 |
| Noninterest income | |||||
| Service charges on deposit accounts | 879 | 324 | 299 | 314 | 241 |
| Mortgage banking income | 815 | 662 | 540 | 461 | 297 |
| Income from wealth management activities | 693 | 665 | 661 | 599 | 447 |
| ATM and card income | 664 | 207 | 223 | 228 | 163 |
| Income from bank-owned life insurance | 450 | 294 | 260 | 259 | 213 |
| Gain on sale of securities available for sale | -- | 989 | 489 | -- | -- |
| Other noninterest income | 307 | 177 | 91 | 60 | 35 |
| Total noninterest income | 3,808 | 3,318 | 2,563 | 1,921 | 1,396 |
| Noninterest expenses | |||||
| Salaries and employee benefits | 11,041 | 6,314 | 5,871 | 6,118 | 6,245 |
| Occupancy and equipment | 1,942 | 928 | 910 | 874 | 705 |
| Data processing and outside service fees | 1,599 | 784 | 696 | 1,291 | 460 |
| Net cost of operation of other real estate owned | 1,167 | 964 | 809 | 522 | 400 |
| Legal and professional fees | 1,077 | 1,181 | 614 | 318 | 505 |
| Deposit charges and FDIC insurance | 473 | 261 | 250 | 266 | 98 |
| Advertising and promotion | 367 | 144 | 108 | 161 | 132 |
| Postage and supplies | 360 | 112 | 124 | 195 | 171 |
| Communication fees | 319 | 198 | 196 | 232 | 119 |
| Core deposit intangible amortization | 257 | 102 | 102 | 102 | 68 |
| Loan and collection expense | 248 | 434 | 295 | 244 | 255 |
| Other noninterest expense | 1,403 | 781 | 860 | 647 | 853 |
| Total noninterest expenses | 20,253 | 12,203 | 10,835 | 10,970 | 10,011 |
| Income (loss) before income taxes | 2,093 | 1,079 | 929 | 2,548 | (1,913) |
| Income tax expense (benefit) | 771 | 459 | 251 | 825 | (931) |
| Net income (loss) | 1,322 | 620 | 678 | 1,723 | (982) |
| Preferred dividends | 51 | -- | -- | -- | -- |
| Net income (loss) available to common shares | $ 1,271 | $ 620 | $ 678 | $ 1,723 | $ (982) |
| Earnings (loss) per common share, fully diluted | $ 0.03 | $ 0.02 | $ 0.02 | $ 0.05 | $ (0.03) |
| Weighted average diluted common shares | 44,025,874 | 32,138,554 | 32,120,402 | 32,075,398 | 30,719,363 |
| PARK STERLING CORPORATION | ||
| CONDENSED CONSOLIDATED INCOME STATEMENT | ||
| TWELVE MONTH RESULTS | ||
| ($ in thousands, except per share amounts) | December 31, | December 31, |
| 2012 | 2011* | |
| (Unaudited) | ||
| Interest income | ||
| Loans, including fees | $ 53,142 | $ 21,776 |
| Taxable investment securities | 3,606 | 2,830 |
| Tax-exempt investment securities | 750 | 716 |
| Nonmarketable equity securities | 194 | 53 |
| Interest on deposits at banks | 153 | 99 |
| Federal funds sold | 49 | 90 |
| Total interest income | 57,894 | 25,564 |
| Interest expense | ||
| Money market, NOW and savings deposits | 1,488 | 743 |
| Time deposits | 2,951 | 4,011 |
| Short-term borrowings | 11 | 3 |
| FHLB advances | 600 | 557 |
| Subordinated debt | 1,520 | 855 |
| Total interest expense | 6,570 | 6,169 |
| Net interest income | 51,324 | 19,395 |
| Provision for loan losses | 2,023 | 9,385 |
| Net interest income after provision | 49,301 | 10,010 |
| Noninterest income | ||
| Service charges on deposit accounts | 1,814 | 315 |
| Mortgage banking income | 2,478 | 297 |
| ATM and card income | 1,322 | 181 |
| Income from wealth management activities | 2,619 | 447 |
| Income from bank-owned life insurance | 1,264 | 265 |
| Gain on sale of securities available for sale | 1,478 | 20 |
| Other noninterest income | 634 | 85 |
| Total noninterest income | 11,609 | 1,610 |
| Noninterest expenses | ||
| Salaries and employee benefits | 29,343 | 14,778 |
| Occupancy and equipment | 4,654 | 1,677 |
| Data processing and outside service fees | 4,371 | 807 |
| Net cost of operation of other real estate owned | 3,462 | 829 |
| Legal and professional fees | 3,190 | 2,738 |
| Deposit charges and FDIC insurance | 1,250 | 702 |
| Advertising and promotion | 781 | 372 |
| Postage and supplies | 791 | 315 |
| Communication fees | 945 | 232 |
| Core deposit intangible amortization | 564 | 68 |
| Loan and collection expense | 1,221 | 630 |
| Other noninterest expense | 3,689 | 1,775 |
| Total noninterest expenses | 54,261 | 24,923 |
| Income (loss) before income taxes | 6,649 | (13,303) |
| Income tax expense (benefit) | 2,306 | (4,944) |
| Net income (loss) | 4,343 | (8,359) |
| Preferred dividends | 51 | -- |
| Net income (loss) available to common shares | $ 4,292 | $ (8,359) |
| Earnings (loss) per common share, fully diluted | $ 0.12 | $ (0.29) |
| Weighted average diluted common shares | 35,108,229 | 28,723,647 |
| * Derived from audited financial statements. |
| PARK STERLING CORPORATION | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| ($ in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011* | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||
| ASSETS | |||||
| Cash and due from banks | $ 36,798 | $ 47,115 | $ 15,898 | $ 18,016 | $ 18,426 |
| Interest-earning balances at banks | 101,431 | 37,256 | 29,795 | 15,567 | 10,115 |
| Investment securities available-for-sale | 245,571 | 186,802 | 222,221 | 232,464 | 210,146 |
| Nonmarketable equity securities | 7,422 | 4,599 | 5,470 | 8,510 | 8,510 |
| Federal funds sold | 45,995 | 22,165 | 29,455 | 20,085 | -- |
| Loans held for sale | 14,147 | 6,095 | 5,331 | 8,055 | 6,254 |
| Loans - Non-covered | 1,255,387 | 708,283 | 712,506 | 727,862 | 759,047 |
| Loans - Covered | 101,446 | -- | -- | -- | -- |
| Allowance for loan losses | (10,591) | (9,207) | (9,431) | (9,556) | (10,154) |
| Net loans | 1,346,242 | 699,076 | 703,075 | 718,306 | 748,893 |
| Premises and equipment, net | 57,222 | 26,729 | 24,619 | 24,371 | 24,515 |
| FDIC receivable for loss share agreements | 20,323 | -- | -- | -- | -- |
| Other real estate owned - non-covered | 18,662 | 13,028 | 14,744 | 16,674 | 14,403 |
| Other real estate owned - covered | 6,728 | -- | -- | -- | -- |
| Bank-owned life insurance | 46,162 | 26,945 | 26,689 | 26,456 | 26,223 |
| Deferred tax asset | 41,824 | 29,087 | 29,841 | 30,143 | 31,131 |
| Goodwill | 23,114 | 622 | 622 | 649 | 428 |
| Core deposit intangible | 9,658 | 3,715 | 3,817 | 3,920 | 4,022 |
| Other assets | 11,334 | 6,954 | 7,542 | 7,535 | 10,156 |
| Total assets | $ 2,032,633 | $ 1,110,188 | $ 1,119,119 | $ 1,130,751 | $ 1,113,222 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Deposits: | |||||
| Demand noninterest-bearing | $ 243,495 | $ 165,899 | $ 158,838 | $ 148,929 | $ 142,652 |
| Money market, NOW and savings | 758,763 | 341,788 | 332,648 | 329,633 | 333,968 |
| Time deposits | 629,746 | 323,988 | 350,548 | 377,875 | 370,017 |
| Total deposits | 1,632,004 | 831,675 | 842,034 | 856,437 | 846,637 |
| Short-term borrowings | 10,143 | 1,135 | 1,678 | 852 | 9,765 |
| FHLB advances | 70,000 | 55,000 | 55,000 | 55,000 | 40,000 |
| Subordinated debt | 21,573 | 12,592 | 12,494 | 12,396 | 12,296 |
| Accrued expenses and other liabilities | 23,372 | 13,982 | 13,727 | 13,250 | 14,470 |
| Total liabilities | 1,757,092 | 914,384 | 924,933 | 937,935 | 923,168 |
| Shareholders' equity: | |||||
| Preferred stock | 20,500 | -- | -- | -- | -- |
| Common stock | 44,576 | 32,707 | 32,707 | 32,644 | 32,644 |
| Additional paid-in capital | 220,842 | 173,826 | 173,318 | 172,873 | 172,390 |
| Accumulated deficit | (13,575) | (14,839) | (15,459) | (16,137) | (17,860) |
| Accumulated other comprehensive income | 3,198 | 4,110 | 3,620 | 3,436 | 2,880 |
| Total shareholders' equity | 275,541 | 195,804 | 194,186 | 192,816 | 190,054 |
| Total liabilities and shareholders' equity | $ 2,032,633 | $ 1,110,188 | $ 1,119,119 | $ 1,130,751 | $ 1,113,222 |
| Common shares issued and outstanding | 44,575,853 | 32,706,627 | 32,706,627 | 32,643,627 | 32,643,627 |
| * Derived from audited financial statements. |
| PARK STERLING CORPORATION | |||||
| SUMMARY OF LOAN PORTFOLIO | |||||
| ($ in thousands) | |||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |
| 2012 | 2012 | 2012 | 2012 | 2011* | |
| BY LOAN TYPE | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Commercial: | |||||
| Commercial and industrial | $ 119,315 | $ 70,155 | $ 67,821 | $ 72,094 | $ 80,746 |
| Commercial real estate - owner-occupied | 299,412 | 161,360 | 161,467 | 166,064 | 169,663 |
| Commercial real estate - investor income producing | 372,375 | 206,808 | 197,368 | 193,641 | 194,460 |
| Acquisition, construction and development | 140,492 | 81,027 | 86,612 | 87,065 | 92,349 |
| Other commercial | 5,628 | 13,059 | 13,486 | 13,518 | 15,658 |
| Total commercial loans | 937,222 | 532,409 | 526,754 | 532,382 | 552,876 |
| Consumer: | |||||
| Residential mortgage | 188,230 | 58,062 | 66,876 | 75,377 | 79,512 |
| Home equity lines of credit | 163,625 | 82,690 | 83,661 | 86,029 | 90,408 |
| Residential construction | 52,811 | 25,872 | 25,559 | 24,670 | 25,126 |
| Other loans to individuals | 15,554 | 9,839 | 10,119 | 9,635 | 11,496 |
| Total consumer loans | 420,220 | 176,463 | 186,215 | 195,711 | 206,542 |
| Total loans | 1,357,442 | 708,872 | 712,969 | 728,093 | 759,418 |
| Deferred costs (fees) | (609) | (589) | (463) | (231) | (371) |
| Total loans, net of deferred costs (fees) | $ 1,356,833 | $ 708,283 | $ 712,506 | $ 727,862 | $ 759,047 |
| BY ACQUIRED AND NON-ACQUIRED** | |||||
| Acquired loans - performing | $ 614,574 | $ 246,267 | $ 262,104 | $ 285,174 | $ 299,682 |
| Acquired loans - purchase credit impaired | 234,352 | 42,823 | 48,045 | 55,843 | 63,818 |
| Total acquired loans | 848,926 | 289,090 | 310,149 | 341,017 | 363,500 |
| Non-acquired loans, net of deferred costs (fees) | 507,907 | 419,193 | 402,357 | 386,845 | 395,547 |
| Total loans | $ 1,356,833 | $ 708,283 | $ 712,506 | $ 727,862 | $ 759,047 |
| * Derived from audited financial statements. | |||||
| ** Includes loans transferred from acquired pools following release of acquisition accounting FMV adjustments. | |||||
| PARK STERLING CORPORATION | |||||
| ALLOWANCE FOR LOAN LOSSES | |||||
| THREE MONTH RESULTS | |||||
| ($ in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Beginning of period allowance | $ 9,207 | $ 9,431 | $ 9,556 | $ 10,154 | $ 9,833 |
| Provision for loan losses | 994 | 7 | 899 | 123 | 1,110 |
| Loans charged-off | (330) | (1,102) | (1,262) | (828) | (1,295) |
| Recoveries of loans charged-off | 720 | 871 | 238 | 107 | 506 |
| End of period allowance | 10,591 | 9,207 | 9,431 | 9,556 | 10,154 |
| Net charge-offs (recoveries) | $ (390) | $ 231 | $ 1,024 | $ 721 | $ 789 |
| Net charge-offs (recoveries) to average loans (annualized) | -0.03% | 0.13% | 0.56% | 0.39% | 0.51% |
| PARK STERLING CORPORATION | |||||
| SELECTED RATIOS | |||||
| ($ in thousands, except per share amounts) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011* | |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| ASSET QUALITY | |||||
| Nonaccrual loans | $ 10,374 | $ 9,792 | $ 16,757 | $ 17,703 | $ 16,256 |
| Troubled debt restructuring | 7,367 | 7,390 | 3,428 | 3,451 | 3,972 |
| Past due 90 days plus (and still accruing) | 77 | 164 | 131 | 698 | -- |
| Nonperforming loans | 17,818 | 17,346 | 20,316 | 21,852 | 20,228 |
| OREO | 25,390 | 13,028 | 14,744 | 16,674 | 14,403 |
| Loans held for sale (nonaccruing) | -- | -- | -- | -- | 1,560 |
| Nonperforming assets | 43,208 | 30,374 | 35,060 | 38,526 | 36,191 |
| Past due 30-59 days (and still accruing) | 607 | 1,040 | 992 | 742 | 2,401 |
| Past due 60-89 days (and still accruing) | 121 | 561 | 74 | 764 | 924 |
| Nonperforming loans to total loans | 1.31% | 2.45% | 2.85% | 3.00% | 2.66% |
| Nonperforming assets to total assets | 2.13% | 2.74% | 3.13% | 3.41% | 3.25% |
| Allowance to total loans | 0.78% | 1.30% | 1.32% | 1.31% | 1.34% |
| Allowance to nonperforming loans | 59.44% | 53.08% | 46.42% | 43.73% | 50.20% |
| Allowance to nonperforming assets | 24.51% | 30.31% | 26.90% | 24.80% | 28.06% |
| Past due 30-89 days (accruing) to total loans | 0.05% | 0.23% | 0.15% | 0.21% | 0.44% |
| Net charge-offs (recoveries) to average loans (annualized) | -0.03% | 0.13% | 0.56% | 0.39% | 0.51% |
| CAPITAL | |||||
| Book value per common share | $ 5.79 | $ 6.09 | $ 6.04 | $ 6.01 | $ 5.93 |
| Tangible book value per common share** | $ 5.05 | $ 5.96 | $ 5.90 | $ 5.87 | $ 5.79 |
| Common shares outstanding | 44,575,853 | 32,706,627 | 32,706,627 | 32,643,627 | 32,643,627 |
| Dilutive common shares outstanding | 44,025,874 | 32,138,554 | 32,138,402 | 32,075,398 | 32,075,367 |
| Tier 1 capital | $ 219,060 | $ 165,345 | $ 162,167 | $ 161,337 | $ 160,122 |
| Tier 2 capital | 17,611 | 16,103 | 16,326 | 16,451 | 17,049 |
| Total risk based capital | 236,671 | 181,447 | 178,494 | 177,788 | 177,171 |
| Risk weighted assets | 1,452,229 | 774,035 | 769,382 | 786,703 | 819,762 |
| Average assets for leverage ratio | 1,947,156 | 1,074,410 | 1,087,079 | 1,092,468 | 901,067 |
| Tier 1 ratio | 15.08% | 21.36% | 21.08% | 20.51% | 19.53% |
| Total risk based capital ratio | 16.30% | 23.44% | 23.20% | 22.60% | 21.61% |
| Tier 1 leverage ratio | 11.25% | 15.39% | 14.92% | 14.77% | 17.77% |
| Tangible common equity to tangible assets** | 11.11% | 17.31% | 17.02% | 16.72% | 16.74% |
| LIQUIDITY | |||||
| Net loans to total deposits | 82.49% | 84.06% | 83.50% | 83.87% | 88.46% |
| Reliance on wholesale funding | 12.27% | 22.24% | 23.02% | 23.98% | 20.38% |
| INCOME STATEMENT (THREE MONTH RESULTS; ANNUALIZED) | |||||
| Return on Average Assets | 0.25% | 0.22% | 0.24% | 0.61% | -0.42% |
| Return on Average Common Equity | 1.96% | 1.26% | 1.40% | 3.60% | -2.11% |
| Net interest margin (non-tax equivalent) | 4.36% | 3.97% | 4.01% | 4.65% | 3.70% |
| INCOME STATEMENT (ANNUAL RESULTS) | |||||
| Return on Average Assets | 0.32% | n/a | n/a | n/a | -1.20% |
| Return on Average Equity | 1.99% | n/a | n/a | n/a | -4.69% |
| Net interest margin (non-tax equivalent) | 4.27% | n/a | n/a | n/a | 2.99% |
| * Balance sheet information derived from audited financial statements. Income statement information unaudited. | |||||
| ** Non-GAAP financial measure | |||||
Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, adjusted net income (loss), adjusted net interest margin, adjusted noninterest income, adjusted noninterest expenses, and adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. Management uses (i) tangible assets, tangible common equity and tangible book value (which exclude goodwill and other intangibles from equity and assets), and related ratios, to evaluate the adequacy of shareholders' equity and to facilitate comparisons with peers; (ii) adjusted allowance for loan losses (which includes net FMV adjustments related to acquired loans) to evaluate both its asset quality and asset quality trends, and to facilitate comparisons with peers; and (iii) adjusted net income (loss), adjusted noninterest income and adjusted noninterest expenses (which exclude merger-related expenses and gain on sale of securities, as applicable), and adjusted net interest margin (which excludes accelerated mark accretion) to evaluate core earnings (loss) and to facilitate comparisons with peers.
| PARK STERLING CORPORATION | |||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||
| ($ in thousands, except per share amounts) | |||||
| (three month and period end results unless otherwise stated) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Adjusted net income | |||||
| Pretax income (loss) (as reported) | $ 2,093 | $ 1,079 | $ 929 | $ 2,548 | $ (1,913) |
| Plus: merger-related expenses | 3,167 | 1,364 | 434 | 930 | 2,609 |
| Less: gain on sale of securities | -- | (989) | (489) | -- | -- |
| Pretax income (loss) | 5,260 | 1,454 | 874 | 3,478 | 696 |
| Tax expense (benefit) | 1,691 | 467 | 281 | 1,118 | 264 |
| Adjusted net income | $ 3,569 | $ 987 | $ 593 | $ 2,360 | $ 432 |
| Preferred dividends | 51 | -- | -- | -- | -- |
| Adjusted net income available to common shareholders | $ 3,518 | $ 987 | $ 593 | $ 2,360 | $ 432 |
| Adjusted net income available to common shareholders per share | $ 0.08 | $ 0.03 | $ 0.02 | $ 0.07 | $ 0.01 |
| Divided by: weighted average diluted shares | 44,025,874 | 32,138,554 | 32,120,402 | 32,075,398 | 30,719,363 |
| Estimated tax rate | 32.15% | 32.15% | 32.15% | 32.15% | 37.90% |
| Adjusted net income (loss) (twelve months) | |||||
| Pretax income (loss) (as reported) | $ 6,649 | $ (13,303) | |||
| Plus: merger-related expenses | 5,895 | 3,813 | |||
| Less: gain on sale of securities | (1,478) | (20) | |||
| Pretax income (loss) | 11,066 | (9,510) | |||
| Tax expense (benefit) | 3,558 | (3,604) | |||
| Adjusted net income (loss) | $ 7,508 | $ (5,906) | |||
| Preferred dividends | 51 | -- | |||
| Adjusted net income (loss) available to common shareholders | $ 7,457 | $ (5,906) | |||
| Adjusted net income (loss) available to common shareholders per share | $ 0.21 | $ (0.21) | |||
| Divided by: weighted average diluted shares | 35,108,229 | 28,723,647 | |||
| Estimated tax rate | 32.15% | 37.90% | |||
| Adjusted net interest margin | |||||
| Net interest income (as reported) | $ 19,532 | $ 9,971 | $ 10,099 | $ 11,719 | $ 7,813 |
| Less: accelerated mark accretion | (1,042) | 17 | (277) | (1,469) | -- |
| Adjusted net interest income | 18,490 | 9,988 | 9,822 | 10,250 | 7,813 |
| Divided by: average earning assets | 1,782,922 | 998,669 | 1,012,570 | 1,013,668 | 838,436 |
| Multiplied by: annualization factor | 3.98 | 3.98 | 4.02 | 4.02 | 3.97 |
| Adjusted net interest margin | 4.13% | 3.98% | 3.90% | 4.07% | 3.70% |
| Adjusted noninterest income | |||||
| Noninterest income (as reported) | $ 3,808 | $ 3,318 | $ 2,563 | $ 1,921 | $ 1,396 |
| Less: gain on sale of securities | -- | (989) | (489) | -- | -- |
| Adjusted noninterest income | $ 3,808 | $ 2,329 | $ 2,074 | $ 1,921 | $ 1,396 |
| Adjusted noninterest income (twelve months) | |||||
| Noninterest income (as reported) | $ 11,609 | $ 1,610 | |||
| Less: gain on sale of securities | (1,478) | (20) | |||
| Adjusted noninterest income | $ 10,131 | $ 1,590 | |||
| Adjusted noninterest expense | |||||
| Noninterest expense (as reported) | $ 20,253 | $ 12,203 | $ 10,835 | $ 10,970 | $ 10,011 |
| Less: merger-related expenses | (3,167) | (1,364) | (434) | (930) | (2,609) |
| Adjusted noninterest expense | 17,086 | 10,839 | 10,401 | 10,040 | 7,402 |
| Adjusted noninterest expense (twelve months) | |||||
| Noninterest expense (as reported) | $ 54,261 | $ 24,923 | |||
| Less: merger-related expenses | (5,895) | (3,813) | |||
| Adjusted noninterest expense | 48,366 | 21,110 | |||
| PARK STERLING CORPORATION | |||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||
| ($ in thousands, except per share amounts) | |||||
| (three month and period end results unless otherwise stated) | December 31, | September 30, | June 30, | March 31, | December 31, |
| 2012 | 2012 | 2012 | 2012 | 2011 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Tangible common equity to tangible assets | |||||
| Total assets | $ 2,032,633 | $ 1,110,188 | $ 1,119,119 | $ 1,130,751 | $ 1,113,222 |
| Less: intangible assets | (32,772) | (4,337) | (4,439) | (4,569) | (4,450) |
| Tangible assets | $ 1,999,861 | $ 1,105,851 | $ 1,114,680 | $ 1,126,182 | $ 1,108,772 |
| Total common equity | $ 255,041 | $ 195,804 | $ 194,186 | $ 192,816 | $ 190,054 |
| Less: intangible assets | (32,772) | (4,337) | (4,439) | (4,569) | (4,450) |
| Tangible common equity | $ 222,269 | $ 191,467 | $ 189,747 | $ 188,247 | $ 185,604 |
| Tangible common equity | $ 222,269 | $ 191,467 | $ 189,747 | $ 188,247 | $ 185,604 |
| Divided by: tangible assets | $ 1,999,861 | $ 1,105,851 | $ 1,114,680 | $ 1,126,182 | $ 1,108,772 |
| Tangible common equity to tangible assets | 11.11% | 17.31% | 17.02% | 16.72% | 16.74% |
| Tangible book value per share | |||||
| Issued and outstanding shares | 44,575,853 | 32,706,627 | 32,706,627 | 32,643,627 | 32,643,627 |
| Add: dilutive stock options | 19,640 | 187 | 35 | 31 | -- |
| Less: nondilutive restricted awards | (568,260) | (568,260) | (568,260) | (568,260) | (568,260) |
| Period end dilutive shares | 44,027,233 | 32,138,554 | 32,138,402 | 32,075,398 | 32,075,367 |
| Tangible common equity | $ 222,269 | $ 191,467 | $ 189,747 | $ 188,247 | $ 185,604 |
| Divided by: period end dilutive shares | 44,027,233 | 32,138,554 | 32,138,402 | 32,075,398 | 32,075,367 |
| Tangible common book value per share | $ 5.05 | $ 5.96 | $ 5.90 | $ 5.87 | $ 5.79 |
| Adjusted allowance for loan losses | |||||
| Allowance for loan losses | $ 10,591 | $ 9,207 | $ 9,431 | $ 9,556 | $ 10,154 |
| Plus: acquisition accounting net FMV adjustments to acquired loans | 53,593 | 21,512 | 24,264 | 31,957 | 35,146 |
| Adjusted allowance for loan losses | $ 64,184 | $ 30,719 | $ 33,695 | $ 41,513 | $ 45,300 |
| Divided by: total loans (excluding LHFS) | $ 1,356,833 | $ 708,283 | $ 712,506 | $ 727,862 | $ 759,047 |
| Adjusted allowance for loan losses to total loans | 4.73% | 4.34% | 4.73% | 5.70% | 5.97% |