Advertisement

Topics

TowneBank Reports Second Quarter Earnings

20:00 EDT 23 Jul 2015 | Globe Newswire

SUFFOLK, Va., July 24, 2015 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the “Bank”) (NASDAQ:TOWN) reported record earnings of $17.81 million for the quarter ended June 30, 2015, a 52.54% increase, or $6.14 million, over the $11.68 million reported for the comparative period in 2014.  Fully diluted earnings per share were $0.35 per share compared to $0.33 per share for the comparative period of 2014.   Earnings for the year-to-date period increased 41.84% to $32.35 million as compared to the $22.81 million earned in the same period of 2014.  For the year-to-date period, fully diluted earnings per share were $0.63 per share, down slightly from $0.64 per share in comparative 2014.  Earnings per share were affected in 2015 by the issuance of 15.55 million new common shares in conjunction with the acquisition of Franklin Financial Corporation (“Franklin”) on January 2, 2015.

The Bank’s common dividend was $0.12 per share for the quarter with the common dividend totaling $6.19 million.  The current dividend represents an increase of 9.1% over the dividend paid during the same quarter of 2014.

“We are pleased to report record earnings for the quarter, as we continue to build on the momentum started earlier this year with the Franklin acquisition and our entry into the Richmond, Virginia market,” said G. Robert Aston, Jr., Chairman and Chief Executive Officer.  “Our operating results reflect the benefits of the merger as revenue increased $16.15 million, or 26.12%, from the second quarter of 2014 while producing a return on average assets of 1.21% and a return on average tangible equity of 11.77%.

“We have continued to position ourselves for growth and success in the Richmond, Virginia metro market,” added Aston.  “The strong team of Richmond hometown bankers we assembled combined with a comprehensive marketing campaign designed to introduce the market to our unique brand has resulted in $66.7 million of new loan originations in Richmond since the merger.”

Second Quarter 2015 Performance Highlights

  • Total revenues were $77.97 million, an increase of $16.15 million, or 26.12%, compared to the second quarter of 2014
    • Taxable equivalent net interest margin was 3.52%, including accretion of 0.10%, compared to 3.43% for second quarter 2014
    • Residential mortgage banking income increased 32.53% from second quarter 2014 to $10.25 million on production volume of $466.23 million
    • Insurance commissions increased 11.15% to $9.88 million
    • Noninterest income was 42.43% of total revenue in second quarter 2015
       
  • Return on average assets of 1.21%, increased from 0.97% for second quarter 2014
     
  • Loans held for investment increased $758.93 million, or 21.88%, from June 30, 2014 with organic growth of $299.11 million, an increase of 8.62%
    • Commercial and industrial loans increased by $74.10 million, or 11.25%, with organic growth of $58.97 million
    • Owner occupied commercial real estate loans increased $22.61 million, or 3.06% with organic growth of $6.70 million
    • Income producing commercial real estate loans increased $338.91 million, or 52.22% with organic growth of $119.95 million
    • Construction and development loans increased $66.44 million, or 13.63% with organic growth of $22.24 million
    • Consumer and other loans increased $55.81 million, or 108.90% through organic growth
       
  • Total deposits were $4.69 billion, an increase of $890.82 million, or 23.47%, from the second quarter of 2014
    • Noninterest bearing deposits increased by 13.34%, to $1.36 billion
    • Average interest-bearing deposit costs were 0.55%, up 4 basis points from the prior year
    • Noninterest bearing deposits were 29.09% of total deposits compared to 31.69% at June 30, 2014
    • Total cost of deposits increased to 0.39% from 0.36% at June 30, 2014 reflective of a greater mix of savings deposits acquired in the Franklin merger
       
  • Asset quality showed continued strength
    • Nonperforming assets were $53.61 million, or 0.89% of total assets compared to 1.02% at June 30, 2014
    • Nonperforming loans decreased 0.61% to $7.46 million
    • Foreclosed property increased to $46.15 million, including $10.33 million acquired in the Franklin merger
    • Performing troubled debt restructurings decreased $8.79 million
    • Provision for loan losses was $1.72 million for second quarter 2015
       
  • The Bank remained well-capitalized
    • Common equity tier 1 capital ratio of 12.93%
    • Tier 1 leverage capital ratio of 11.14%
    • Tier 1 risk-based capital ratio of 13.04%
    • Total risk-based capital ratio of 13.80%
    • Tangible book value increased to $12.00

Net Interest Income

Net interest income increased to $44.88 million, an $8.35 million, or 22.84%, increase from the second quarter of 2014.  The primary driver of the increase was the significant increase in earning assets from the Franklin merger along with the restructuring of the Franklin balance sheet.  Average earning assets increased $994.38 million, or 22.53%, from the second quarter of 2014.  Augmenting the increase was a 9 basis point widening of the tax-equivalent net interest margin to 3.52% in the current quarter from 3.43% in the second quarter of 2014.  Accretion income added $1.08 million, or 10 basis points, to margin in the current quarter.

On a linked quarter basis, net interest income increased $1.33 million or 3.05%, in second quarter 2015 versus first quarter 2015, while tax-equivalent net interest margin was unchanged from the first quarter of 2015 at 3.52%.

Noninterest Income

        
       % Change
 Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
(in millions)2015 2014 2015 Q2 14 Q1 15
Residential mortgage banking income, net$10,251  $7,735  $8,443  32.53% 21.41%
Real estate brokerage and property management, net4,584  3,248  3,955  41.13% 15.90%
Insurance commissions and other title fees and  income, net9,885  8,893  11,049  11.15% (10.53)%
Service charges on deposit accounts2,326  2,366  2,197  (1.69)% 5.87%
Credit card merchant fees, net566  965  432  (41.35)% 31.02%
Other income5,354  2,139  2,691  150.30% 98.96%
Subtotal before gain on investment securities32,966  25,346  28,767  30.06% 14.60%
Net gain on investment securities119  (62) 49  N/M 142.86%
Total noninterest income$33,085  $25,284  $28,816  30.85% 14.81%
                  

Noninterest income, excluding gains or losses on investment securities, was $32.97 million for the second quarter of 2015, an increase of $7.62 million, or 30.06%, from the second quarter of 2014.  The majority of the increase from the comparative period in 2014 is attributable to residential mortgage banking income, which increased $2.52 million, or 32.53%, from the second quarter of 2014 primarily due to increased production volumes and improved pricing and margins.  Mortgage production was $466.23 million in the second quarter of 2015, which was $131.35 million greater than second quarter 2014.  Also contributing to the increase were insurance commissions, which increased $0.99 million, or 11.15%, primarily due to the acquisition of two insurance agencies in February 2015 and one agency in May 2014.  The increase in real estate brokerage and property management income was driven by the acquisition of a resort property management company in Hilton Head, South Carolina in fourth quarter 2014 and was partially offset by the sale of our North Carolina-based property management business on April 1, 2015, which generated management fee revenue of $0.97 million in second quarter 2014.  The Bank recognized a gain of $1.36 million on the sale, which was recorded in other noninterest income, partially offset by expenses of $0.24 million recorded in noninterest expense.

In comparison to the first quarter of 2015, noninterest income, excluding gains or losses on investment securities, increased $4.20 million, or 14.60%.  Residential mortgage banking income increased by $1.81 million, or 21.41%, from the first quarter of 2015 as mortgage production increased by $147.81 million.  Real estate brokerage and property management income increased due to a seasonal increase related to our resort property management business.  The increase was offset by the sale of our North Carolina-based property management business, which generated $1.80 million in management fee revenue in first quarter 2015.  The sale resulted in a gain of $1.36 million, which was recorded in other noninterest income  Insurance commissions decreased due to lower contingent commission revenue, which is mostly received during the first quarter of each year.

Noninterest Expense

        
       % Change
 Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
(in millions)2015 2014 2015 Q2 14 Q1 15
Salaries and benefits$26,544  $25,325  $27,679  4.81% (4.10)%
Occupancy expense4,856  4,393  4,930  10.54% (1.50)%
Furniture and equipment2,369  2,040  2,369  16.13% %
Acquisition-related expenses370  35  415  957.14% (10.84)%
Other14,928  12,875  15,047  15.95% (0.79)%
Total noninterest expense$49,067  $44,668  $50,440  9.85% (2.72)%
                  

Noninterest expense increased by $4.40 million, or 9.85%, from the comparative quarter of 2014.  Driving the increase were operating expenses of $2.51 million related to the Franklin merger.  Additionally, operating expenses increased $2.13 million due to our insurance and resort property management acquisitions in first quarter of 2015 and in 2014.

Noninterest expense decreased by $1.37 million, or 2.72%, from the first quarter of 2015.  Driving the decrease were salary and benefits expenses, which decreased by $1.14 million due to lower payroll taxes and employee incentive compensation combined with a decrease in costs related to foreclosed properties.

Segment Results

         
        $ Change
(in millions) Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
Segment Net Income 2015 2014 2015 Q2 14 Q1 15
Banking $13,067  $8,919  $11,108  $4,148  $1,959 
Realty 3,727  1,434  1,647  2,293  2,080 
Insurance 1,018  1,324  1,783  (306) (765)
Total net income $17,812  $11,677  $14,538  $6,135  $3,274 
                     

Banking
Net income for the three months ended June 30, 2015 for the Banking segment was $13.07 million, increasing $4.15 million, or 46.51%, from the comparative 2014 quarter.  The increase in earnings was driven by an increase in net interest income of $8.02 million, primarily due to the increase in earning assets acquired in the Franklin merger.  The increase in net interest income was partially offset by an increase in the loan loss provision driven by loan growth and the reclassification of industrial revenue bonds from investment securities to loans, as shown below, combined with an increase in noninterest expense related to the Franklin merger and increases in charitable contributions, marketing expenses, and the opening of a new banking office in May 2015.

The increase in earnings of $1.96 million, or 17.64% from the first quarter of 2015 was primarily driven by an increase in revenue due to a combination of higher net interest income of $0.89 million, which was primarily due to loan growth, and an increase in other income of $1.05 million driven by a gain of $0.57 million on the sale of land owned by the Bank.  Also contributing to the increase in earnings was a decrease in noninterest expenses of $2.07 million as personnel costs, foreclosed property expenses and outside processing costs all saw decreases.  The increase was partially offset by an increase in the loan loss provision as discussed above.

 
Reclassification of Industrial Revenue Bonds
 Prior to   Subsequent to
June 30, 2015Reclassification Reclassification Reclassification
      
Securities held to maturity, at amortized cost$254,702  $(174,507) $80,195 
      
Loans, net of unearned income and deferred costs:4,053,620  174,507  4,228,127 
Allowance for loan losses(36,486) (804) (37,290)
Net loans4,017,134  173,703  4,190,837 
      
 Three Months Ended June 30, 2015
 Prior to   Subsequent to
 Reclassification Reclassification Reclassification
INTEREST INCOME:     
Loans, including fees$46,941  $1,229  $48,170 
Investment securities4,550  (1,229) 3,321 
      
Provision for loan losses919  804  1,723 
         

Realty
For the three months ended June 30, 2015, the Realty segment had net income of $3.73 million, an increase of $2.29 million compared to the second quarter of 2014.  Contributing to the improvement was an increase in residential mortgage banking income of $2.64 million, or 33.77%.  Also contributing to the improvement was an increase in property management fees of $1.22 million, or 86.67%.  Additionally, second quarter results included a gain of $1.36 million on the sale of our North Carolina-based property management business, partially offset by expenses of $0.24 million.

Net income in the Realty segment increased by $2.08 million from the linked quarter ended March 31, 2015.  The increase resulted from a combination of higher residential mortgage banking income of $1.94 million, a seasonal increase in real estate brokerage income of $0.70 million, and the gain on the sale of our North Carolina-based property management business.  The improvement in earnings was partially offset by a decrease in property management fees of $0.07 million due to the sale of our North Carolina-based property management business, which generated $1.80 million in management fee revenue in first quarter 2015, and an increase in noninterest expenses of $0.55 million.

Insurance
The Insurance segment had net income of $1.02 million for the three months ended June 30, 2015, a decrease of $0.31 million as compared to the second quarter of 2014.  Contributing to the decline were increases in personnel costs related to 401(k) expenses, acquisition-related expenses, and legal fees.  The insurance agency acquisitions in first quarter 2015 and second quarter 2014 resulted in additional commissions and fee revenue of $0.98 million and additional $0.94 million of noninterest expenses.

Net income decreased $0.77 million from the first quarter of 2015.  The decline from the linked quarter was driven by a decrease in contingency and bonus revenue of $2.14 million, which offset a seasonal increase in property and casualty commission income of $1.06 million.  Contingent commissions are seasonal in nature and are mostly received during the first quarter of each year.

Balance Sheet

At June 30, 2015, total Bank assets reached $6.06 billion, an increase of $1.15 billion, or 23.33%, over June 30, 2014.

Loans

        
       % Change
 Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
(in thousands)2015 2014 2015 Q2 14 Q1 15
Construction and land development$554,053  $487,613  $519,390  13.63% 6.67%
Commercial real estate - investment related properties987,945  649,040  954,826  52.22% 3.47%
Commercial real estate - owner occupied760,622  738,008  770,880  3.06% (1.33)%
Multifamily real estate137,378  55,620  146,395  146.99% (6.16)%
1-4 family residential real estate948,138  828,832  915,205  14.39% 3.60%
Commercial and industrial business loans732,936  658,839  700,252  11.25% 4.67%
Consumer loans and other107,055  51,246  88,747  108.90% 20.63%
Total$4,228,127  $3,469,198  $4,095,695  21.88% 3.23%
                  

The Bank’s loan portfolio ended the period at $4.23 billion representing an increase of 21.88%, or $758.93 million, from the prior year and an increase of 3.23%, or $132.43 million, from March 31, 2015.  Organic growth in 2015, including the effect of loan transfers to OREO, was $208.90 million, or 11.66% on an annualized basis.  Included in this growth were new originations of $66.70 million in our Richmond market.

Deposits

        
       % Change
 Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
(in thousands)2015 2014 2015 Q2 14 Q1 15
Noninterest-bearing demand$1,363,551  $1,203,040  $1,261,482  13.34% 8.09%
Interest-bearing:         
Demand and money market accounts1,680,038  1,306,595  1,643,534  28.58% 2.22%
Savings300,203  192,932  303,936  55.60% (1.23)%
Certificates of deposits1,342,860  1,093,262  1,296,666  22.83% 3.56%
Total$4,686,652  $3,795,829  $4,505,618  23.47% 4.02%
                  

The Bank continued to experience solid deposit growth with total deposits increasing to $4.69 billion, up $890.82 million, or 23.47%, from June 30, 2014.  The increase was mostly due to the deposits acquired in the Franklin merger.  Organic growth in total deposits was $143.47 million, or 7.46% on an annualized basis, from December 31, 2014.  The Bank saw continued growth in noninterest bearing demand deposits, which ended the quarter at $1.36 billion, a 13.34% increase from June 30, 2014.  Noninterest deposits represented 29.09% of total deposits at June 30, 2015.  The slight percentage decline from June 30, 2014 was a result of the funding mix in the acquired Franklin deposits.

Capital Ratios

       
  Q2 Q2 Q1
  2015 2014 2015
Common Equity Tier 1 (a) 12.93% N/A 13.09%
Tier 1 (a) 13.04% 12.83% 13.20%
Total (a) 13.80% 13.79% 13.96%
Tier 1 leverage ratio (a) 11.14% 10.16% 10.99%
          

(a) Basel III rules became effective January 1, 2015, with transitional provisions.  All prior year data is based on Basel I rules

The Bank’s total equity at June 30, 2015 rose to $802.89 million, an increase of $198.08 million, or 32.75%, from June 30, 2014.  Common equity increased 52.83%, or $274.48 million, as the Bank issued common stock in the amount of $238.66 million in the Franklin merger and redeemed in full its $76.46 million of outstanding Non-Cumulative Convertible Preferred Stock, Series C issued to the U.S. Treasury under the Small Business Lending Fund during first quarter 2015.  Total risk-based capital remained strong as total risk-based capital, Tier 1 capital, Tier 1 leverage ratios, and common equity Tier 1 capital ratios were 13.80%, 13.04%, 11.14%, 12.93%, respectively.  All ratios exceed the current regulatory standards for well capitalized status.

Asset Quality

          
(in thousands)6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014
          
Nonperforming loans$7,455  $7,045  $6,741  $5,853  $7,501 
          
Foreclosed property46,154  51,698  35,116  37,951  42,404 
          
Total nonperforming assets$53,609  $58,743  $41,857  $43,804  $49,905 
          
Quarterly net loans charged off$339  $333  $262  $602  $925 
          
Year-to-date net loans charged off$672  $333  $2,955  $2,694  $2,092 
                    

Continued improvements in credit quality contributed to the Bank's financial results as nonperforming loans decreased to $7.46 million from $7.50 million, at June 30, 2014 and increased from $7.05 million at March 31, 2015.  Net charge-offs were $0.34 million in the second quarter of 2015 compared to $0.92 million in the second quarter of 2014 and $0.33 million in the linked quarter.  Total nonperforming assets were $53.61 million, or 0.89%, of Bank assets, including foreclosed property of $10.33 million originally acquired in the Franklin merger, at June 30, 2015, as compared to $49.91 million, or 1.02%, at June 30, 2014, and $58.74 million, or 1.01%, at March 31, 2015.  The allowance for loan losses was $37.29 million, increased from $35.79 million at June 30, 2014 and $35.91 million at March 31, 2015.  A reclassification of industrial revenue bonds from investment securities to loans during second quarter 2015 was responsible for $0.80 million of the increase, while loan growth drove the remainder of the increase.  The total allowance for loan losses, including purchased loans, was 0.88% of loans held for investment at June 30, 2015, compared to 1.03% at June 30, 2014 and 0.88% at March 31, 2015.  The allowance for loan losses on originated loans was 1.00% of originated loans held for investment at June 30, 2015, compared to 1.04% at June 30, 2014 and 1.00% at March 31, 2015.  The allowance for loan losses was 5.0 times nonperforming loans held for investment, compared to 4.77 at June 30, 2014 and 5.10 times at March 31, 2015.

         
        Change
  Q2 Q2 Q1 Q2 15 vs. Q2 15 vs.
(dollars in thousands) 2015 2014 2015 Q2 14 Q1 15
Total loans 90 days past due and still accruing $277  $28  $3  $249  $274 
Total loans 30-89 days past due $5,283  $12,663  $10,483  $(7,380) $(5,200)
Allowance for loan losses $37,290  $35,786  $35,907  $1,504  $1,383 
Total performing TDRs $31,714  $40,500  $32,896  $(8,786) $(1,182)
           
Nonperforming loans to period end loans 0.18% 0.22% 0.17% (0.04) 0.01 
Nonperforming assets to period end assets 0.89% 1.02% 1.01% (0.13) (0.12)
Allowance for loan losses to period end loans 0.88% 1.03% 0.88% (0.15)  
Allowance for loan losses (originated) to originated period end loans 1.00% 1.04% 1.00% (0.04)  
Net charge-offs to average loans (annualized) 0.03% 0.11% 0.03% (0.08)  
Ratio of allowance for loan losses to nonperforming loans 5.00x 4.77x 5.10x 0.23x (0.10)x
           

About TowneBank:
As one of the top community banks in Virginia and North Carolina, TowneBank operates 36 banking offices serving Chesapeake, Chesterfield County, Glen Allen, Hampton, James City County, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach, Williamsburg, and York County in Virginia, along with Moyock, Grandy, Camden County, Southern Shores, Corolla and Nags Head in North Carolina. Towne also offers a full range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Insurance Agency, TFA Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Beach Properties of Hilton Head. Local decision-making is a hallmark of its hometown banking strategy that is delivered through the leadership of each group’s President and Board of Directors.  With total assets of $6.06 billion as of June 30, 2015, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains financial information determined by methods other than in accordance with GAAP.  The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance.  These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature.  Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses.  These non-GAAP disclosures should not be viewed as a substitute for operating results 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 disclosures are included as tables at the end of this release.

Forward-Looking Statements:
Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions. TowneBank intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. The Company’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material effect on the operations and future prospects of TowneBank include but are not limited to changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the companies’ respective market areas; implementation of new technologies; ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; changes in accounting principles, policies and guidelines; mergers and acquisitions; and other risk factors detailed from time to time in filings made by TowneBank with the FDIC. TowneBank undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise. 

 
Selected Financial Highlights (unaudited)
TOWNEBANK
June 30, 2015
(dollars in thousands, except per share data)
 
        Increase/  % Increase/
Three months ended June 30,2015 2014  (Decrease)  (Decrease)
         
Results of Operations:       
 Net interest income$44,884  $36,538  $8,346  22.84%
 Noninterest income (1)32,966  25,346  7,620  30.06%
 Gain (loss) on investment securities119  (62) 181  N/M
 Total Revenue77,969  61,822  16,147  26.12%
 Noninterest expenses49,067  44,668  4,399  9.85%
 Provision for loan losses1,723  (833) 2,556  N/M
 Income before income tax and noncontrolling interest27,179  17,987  9,192  51.10%
 Provision for income tax expense8,201  5,432  2,769  50.98%
 Net income18,978  12,555  6,423  51.16%
 Net income attributable to noncontrolling interest(1,166) (878) (288) 32.80%
 Net income attributable to TowneBank17,812  11,677  6,135  52.54%
 Preferred stock dividends and accretion  191  (191) (100.00)%
 Net income available to common shareholders17,812  11,486  6,326  55.08%
 Net income per common share - basic0.35  0.33  0.02  6.06%
 Net income per common share - diluted0.35  0.33  0.02  6.06%
Period End Data:       
 Total assets$6,055,181  $4,909,843  $1,145,338  23.33%
 Total assets - tangible5,879,975  4,779,709  1,100,266  23.02%
 Earning assets (2)5,576,243  4,536,817  1,039,426  22.91%
 Loans (net of unearned income)4,228,127  3,469,198  758,929  21.88%
 Allowance for loan losses37,290  35,786  1,504  4.20%
 Goodwill and other intangibles175,207  130,134  45,073  34.64%
 Nonperforming assets53,609  49,905  3,704  7.42%
 Noninterest bearing deposits1,363,551  1,203,040  160,511  13.34%
 Interest bearing deposits3,323,101  2,592,789  730,312  28.17%
 Total deposits4,686,652  3,795,829  890,823  23.47%
 Total equity802,891  604,812  198,079  32.75%
 Total equity - tangible627,685  474,678  153,007  32.23%
 Common equity794,018  519,536  274,482  52.83%
 Common equity - tangible618,812  389,402  229,410  58.91%
 Book value per common share15.40  14.63  0.77  5.26%
 Book value per common share - tangible12.00  10.96  1.04  9.49%
Daily Average Balances:       
 Total assets$5,900,816  $4,810,582  $1,090,234  22.66%
 Total assets - tangible5,724,957  4,683,697  1,041,260  22.23%
 Earning assets (2)5,407,516  4,413,137  994,379  22.53%
 Loans (net of unearned income), excluding nonaccrual loans4,161,304  3,433,425  727,879  21.20%
 Allowance for loan losses36,854  37,458  (604) (1.61)%
 Goodwill and other intangibles175,858  126,885  48,973  38.60%
 Noninterest bearing deposits1,307,075  1,118,051  189,024  16.91%
 Interest bearing deposits3,241,276  2,587,137  654,139  25.28%
 Total deposits4,548,351  3,705,188  843,163  22.76%
 Total equity800,369  601,203  199,166  33.13%
 Total equity - tangible624,511  474,319  150,192  31.66%
 Common equity791,915  516,102  275,813  53.44%
 Common equity - tangible616,057  389,217  226,840  58.28%
Key Ratios:       
 Return on average assets1.21% 0.97% 0.24% 24.74%
 Return on average assets - tangible1.28% 1.03% 0.25% 24.27%
 Return on average equity8.93% 7.79% 1.14% 14.63%
 Return on average equity - tangible11.77% 10.20% 1.57% 15.39%
 Return on average common equity9.02% 8.93% 0.09% 1.01%
 Return on average common equity - tangible11.93% 12.24% (0.31)% (2.53)%
 Net interest margin-fully tax equivalent (2)(3)3.52% 3.43% 0.09% 2.62%
 Net interest margin (2)3.43% 3.36% 0.07% 2.08%
 Average earning assets/total average assets91.64% 91.74% (0.10)% (0.11)%
 Average loans/average deposits91.49% 92.67% (1.18)% (1.27)%
 Average noninterest deposits/total average deposits28.74% 30.18% (1.44)% (4.77)%
 Allowance for loan losses/period end loans0.88% 1.03% (0.15)% (14.56)%
 Nonperforming assets to period end assets0.89% 1.02% (0.13)% (12.75)%
 Period end equity/period end total assets13.26% 12.32% 0.94% 7.63%
 Efficiency ratio (1)63.03% 72.18% (9.15)% (12.68)%
         
(1) Excludes gain (loss) on investment securities       
(2) Includes bank-owned life insurance       
(3) Presented on a tax-equivalent basis       
        


Selected Financial Highlights (unaudited)
TOWNEBANK
June 30, 2015
(dollars in thousands)
         
       Increase/ % Increase/
Six Months Ended June 30, 20152015 2014 (Decrease) (Decrease)
         
Results of Operations:       
 Net interest income$88,440  $71,730  $16,710  23.30%
 Noninterest income (1)61,732  48,073  13,659  28.41%
 Gain (loss) on investment securities169  (60) 229  N/M
 Total Revenue150,341  119,743  30,598  25.55%
 Noninterest expenses99,507  85,749  13,758  16.04%
 Provision for loan losses2,045  (503) 2,548  N/M
 Income before income tax and noncontrolling interest48,789  34,497  14,292  41.43%
 Provision for income tax expense14,586  10,337  4,249  41.10%
 Net income34,203  24,160  10,043  41.57%
 Net income attributable to noncontrolling interest(1,853) (1,352) (501) 37.06%
 Net income attributable to TowneBank32,350  22,808  9,542  41.84%
 Preferred stock dividends13  382  (369) (96.60)%
 Net income available to common shareholders32,337  22,426  9,911  44.19%
 Net income per common share - basic0.64  0.64    %
 Net income per common share - diluted0.63  0.64  (0.01) (1.56)%
Period End Data:       
 Total assets$6,055,181  $4,909,843  $1,145,338  23.33%
 Total assets - tangible5,879,975  4,779,709  1,100,266  23.02%
 Earning assets (2)5,576,243  4,536,817  1,039,426  22.91%
 Loans (net of unearned income)4,228,127  3,469,198  758,929  21.88%
 Allowance for loan losses37,290  35,786  1,504  4.20%
 Goodwill and other intangibles175,207  130,134  45,073  34.64%
 Nonperforming assets53,609  49,905  3,704  7.42%
 Noninterest bearing deposits1,363,551  1,203,040  160,511  13.34%
 Interest bearing deposits3,323,101  2,592,789  730,312  28.17%
 Total deposits4,686,652  3,795,829  890,823  23.47%
 Total equity802,891  604,812  198,079  32.75%
 Total equity - tangible627,685  474,678  153,007  32.23%
 Common equity794,018  519,536  274,482  52.83%
 Common equity - tangible618,812  389,402  229,410  58.91%
 Book value per common share15.40  14.63  0.77  5.26%
 Book value per common share - tangible12.00  10.96  1.04  9.49%
Daily Average Balances:       
 Total assets$5,865,372  $4,748,079  $1,117,293  23.53%
 Total assets - tangible5,684,147  4,624,679  1,059,468  22.91%
 Earning assets (2)5,349,362  4,357,786  991,576  22.75%
 Loans (net of unearned income), excluding nonaccrual loans4,114,156  3,401,627  712,529  20.95%
 Allowance for loan losses36,453  38,024  (1,571) (4.13)%
 Goodwill and other intangibles181,224  123,400  57,824  46.86%
 Noninterest bearing deposits1,281,690  1,078,200  203,490  18.87%
 Interest bearing deposits3,245,034  2,566,436  678,598  26.44%
 Total deposits4,526,724  3,644,637  882,087  24.20%
 Total equity791,152  596,472  194,680  32.64%
 Total equity - tangible609,928  473,072  136,856  28.93%
 Common equity780,014  511,295  268,719  52.56%
 Common equity - tangible598,790  387,895  210,895  54.37%
Key Ratios:       
 Return on average assets1.11% 0.97% 0.14% 14.43%
 Return on average assets - tangible1.19% 1.03% 0.16% 15.53%
 Return on average equity8.25% 7.71% 0.54% 7.00%
 Return on average equity - tangible11.04% 10.03% 1.01% 10.07%
 Return on average common equity8.36% 8.85% (0.49)% (5.54)%
 Return on average common equity - tangible11.24% 12.04% (0.80)% (6.64)%
 Net interest margin-fully tax equivalent (2)(3)3.52% 3.43% 0.09% 2.62%
 Net interest margin (2)3.43% 3.36% 0.07% 2.08%
 Average earning assets/total average assets91.20% 91.78% (0.58)% (0.63)%
 Average loans/average deposits90.89% 93.33% (2.44)% (2.61)%
 Average noninterest deposits/total average deposits28.31% 29.58% (1.27)% (4.29)%
 Allowance for loan losses/period end loans0.88% 1.03% (0.15)% (14.56)%
 Nonperforming assets to period end assets0.89% 1.02% (0.13)% (12.75)%
 Period end equity/period end total assets13.26% 12.32% 0.94% 7.63%
 Efficiency ratio (1)66.26% 71.57% (5.31)% (7.42)%
         
(1) Excludes gain on investment securities       
(2) Includes bank-owned life insurance       
(3) Presented on a tax-equivalent basis       
        


Selected Financial Highlights (unaudited)
TOWNEBANK
June 30, 2015
(dollars in thousands, except per share data)
 
  June 30, March 31,   Increase/  % Increase/
Three Months Ended2015 2015  (Decrease)  (Decrease)
         
Results of Operations:       
 Net interest income$44,884  $43,556  $1,328  3.05%
 Noninterest income (1)32,966  28,767  4,199  14.60%
 Gain (loss) on investment securities119  49  70  142.86%
 Total Revenue77,969  72,372  5,597  7.73%
 Noninterest expenses49,067  50,440  (1,373) (2.72)%
 Provision for loan losses1,723  323  1,400  433.44%
 Income before income tax and noncontrolling interest27,179  21,610  5,569  25.77%
 Provision for income tax expense8,201  6,385  1,816  28.44%
 Net income18,978  15,224  3,754  24.66%
 Net income attributable to noncontrolling interest(1,166) (686) (480) 69.97%
 Net income attributable to TowneBank17,812  14,538  3,274  22.52%
 Preferred stock dividends and accretion  13  (13) (100.00)%
 Net income available to common shareholders17,812  14,525  3,287  22.63%
 Net income per common share - basic0.35  0.29  0.06  20.69%
 Net income per common share - diluted0.35  0.29  0.06  20.69%
Period End Data:       
 Total assets$6,055,181  $5,828,703  $226,478  3.89%
 Total assets - tangible5,879,975  5,649,097  230,878  4.09%
 Earning assets (2)5,576,243  5,355,376  220,867  4.12%
 Loans (net of unearned income)4,228,127  4,095,695  132,432  3.23%
 Allowance for loan losses37,290  35,907  1,383  3.85%
 Goodwill and other intangibles175,207  179,607  (4,400) (2.45)%
 Nonperforming assets53,609  58,743  (5,134) (8.74)%
 Noninterest bearing deposits1,363,551  1,261,482  102,069  8.09%
 Interest bearing deposits3,323,101  3,244,136  78,965  2.43%
 Total deposits4,686,652  4,505,618  181,034  4.02%
 Total equity802,891  791,581  11,310  1.43%
 Total equity - tangible627,685  611,974  15,711  2.57%
 Common equity794,018  783,157  10,861  1.39%
 Common equity - tangible618,812  603,550  15,262  2.53%
 Book value per common share15.40  15.22  0.18  1.18%
 Book value per common share - tangible12.00  11.73  0.27  2.30%
Daily Average Balances:       
 Total assets$5,900,816  $5,829,533  $71,283  1.22%
 Total assets - tangible5,724,957  5,642,883  82,074  1.45%
 Earning assets (2)5,407,516  5,290,562  116,954  2.21%
 Loans (net of unearned income), excluding nonaccrual loans4,161,304  4,066,484  94,820  2.33%
 Allowance for loan losses36,854  36,048  806  2.24%
 Goodwill and other intangibles175,858  186,650  (10,792) (5.78)%
 Noninterest bearing deposits1,307,075  1,256,023  51,052  4.06%
 Interest bearing deposits3,241,276  3,248,834  (7,558) (0.23)%
 Total deposits4,548,351  4,504,857  43,494  0.97%
 Total equity800,369  781,833  18,536  2.37%
 Total equity - tangible624,511  595,183  29,328  4.93%
 Common equity791,915  767,980  23,935  3.12%
 Common equity - tangible616,057  581,330  34,727  5.97%
Key Ratios:       
 Return on average assets1.21% 1.01% 0.20% 19.80%
 Return on average assets - tangible1.28% 1.08% 0.20% 18.52%
 Return on average equity8.93% 7.54% 1.39% 18.44%
 Return on average equity - tangible11.77% 10.27% 1.50% 14.61%
 Return on average common equity9.02% 7.67% 1.35% 17.60%
 Return on average common equity - tangible11.93% 10.51% 1.42% 13.51%
 Net interest margin-fully tax equivalent (2)(3)3.52% 3.52% % %
 Net interest margin (2)3.43% 3.43% % %
 Average earning assets/total average assets91.64% 90.75% 0.89% 0.98%
 Average loans/average deposits91.49% 90.27% 1.22% 1.35%
 Average noninterest deposits/total average deposits28.74% 27.88% 0.86% 3.08%
 Allowance for loan losses/period end loans0.88% 0.88% % %
 Nonperforming assets to period end assets0.89% 1.01% (0.12)% (11.88)%
 Period end equity/period end total assets13.26% 13.58% (0.32)% (2.36)%
 Efficiency ratio (1)63.03% 69.74% (6.71)% (9.62)%
         
(1) Excludes gain (loss) on investment securities       
(2) Includes bank-owned life insurance       
(3) Presented on a tax-equivalent basis       
        


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
 
 Three Months Ended Three Months Ended Three Months Ended
 June 30, 2015 March 31, 2015 June 30, 2014
  InterestAverage  InterestAverage  InterestAverage
 AverageIncome/Yield/ AverageIncome/Yield/ AverageIncome/Yield/
 BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
Assets:           
Loans (net of unearned income and deferred costs), excluding nonaccrual loans$4,161,304 $48,730 4.70% $4,066,484 $47,890 4.78% $3,433,425 $40,449 4.73%
Taxable investment securities818,000 2,825 1.38% 749,414 2,801 1.49% 602,375 1,843 1.22%
Tax-exempt investment securities63,255 496 3.14% 66,812 536 3.20% 70,842 554 3.13%
Interest-bearing deposits87,709 56 0.25% 202,852 125 0.25% 177,045 111 0.25%
Loans held for sale131,305 1,161 3.54% 64,512 565 3.50% 71,883 719 4.00%
Bank-owned life insurance145,943 2,044 5.62% 140,488 1,753 5.06% 57,567 667 4.65%
Total earning assets5,407,516 55,312 4.10% 5,290,562 53,670 4.11% 4,413,137 44,343 4.03%
  Less: allowance for loan losses(36,854)   (36,048)   (37,458)  
            
Total nonearning assets530,154    575,019    434,903   
            
  Total assets$5,900,816    $5,829,533    $4,810,582   
            
Liabilities and Equity:           
Interest-bearing deposits           
  Demand and money market$1,646,075 $1,144 0.28% $1,635,454 $1,111 0.28% $1,305,681 $807 0.25%
  Savings301,020 692 0.92% 305,016 683 0.91% 311,732 723 0.93%
  Certificates of deposit1,294,181 2,606 0.81% 1,308,364 2,630 0.82% 969,724 1,765 0.73%
Total interest-bearing deposits3,241,276 4,442 0.55% 3,248,834 4,424 0.55% 2,587,137 3,295 0.51%
Borrowings460,993 3,382 2.90% 447,198 3,388 3.03% 426,424 3,333 3.09%
Total interest-bearing liabilities3,702,269 7,824 0.85% 3,696,032 7,812 0.86% 3,013,561 6,628 0.88%
Demand deposits1,307,075    1,256,023    1,118,051   
Other noninterest-bearing liabilities91,103    95,645    77,767   
  Total liabilities5,100,447    5,047,700    4,209,379   
            
Shareholders’ equity800,369    781,833    601,203   
            
  Total liabilities and equity$5,900,816    $5,829,533    $4,810,582   
            
Net interest income (tax-equivalent basis) $47,488    $45,858    $37,715  
Reconcilement of Non-GAAP Financial Measures          
  Bank-owned life insurance (2,044)   (1,753)   (667) 
  Tax-equivalent basis adjustment (560)   (549)   (510) 
Net interest income (GAAP) $44,884    $43,556    $36,538  
            
Interest rate spread (1)  3.26%   3.26%   3.15%
Interest expense as a percent of average earning assets 0.58%   0.60%   0.60%
Net interest margin (tax equivalent basis) (2) 3.52%   3.52%   3.43%
Total cost of deposits  0.39%   0.40%   0.36%
            

(1) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.  Fully tax equivalent.
(2) Net interest margin is net interest income expressed as a percentage of average earning assets.  Fully tax equivalent.


 
TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
 
 Six Months Ended Six Months Ended Six Months Ended June 30, 2015
 June 30, 2015 June 30, 2014 Compared with June 30, 2014
  InterestAverage  InterestAverage   
 AverageIncome/Yield/ AverageIncome/Yield/ IncreaseChange due to
 BalanceExpenseRate BalanceExpenseRate (Decrease)RateVolume
Assets:           
Loans (net of unearned income and deferred costs), excluding nonaccrual loans$4,114,156 $96,619 4.74% $3,401,627 $80,169 4.75% $16,450 $(284)$16,734 
Taxable investment securities783,896 5,626 1.44% 514,888 3,332 1.29% 2,294 396 1,898 
Tax-exempt investment securities65,024 1,032 3.17% 71,126 1,053 2.96% (21)73 (94)
Interest-bearing deposits144,962 181 0.25% 255,157 319 0.25% (138) (138)
Loans held for sale98,093 1,726 3.52% 57,447 1,147 3.99% 579 (150)729 
Bank-owned life insurance143,231 3,797 5.35% 57,541 1,416 4.96% 2,381 117 2,264 
Total earning assets5,349,362 108,981 4.11% 4,357,786 87,436 4.05% 21,545 152 21,393 
  Less: allowance for loan losses(36,453)   (38,024)      
            
Total nonearning assets$552,463    $428,317       
            
  Total assets$5,865,372    $4,748,079       
            
Liabilities and Equity:           
Interest-bearing deposits           
Demand and money market$1,640,794 $2,255 0.28% $1,282,139 $1,547 0.24% $708 $235 $473 
Savings303,007 1,375 0.92% 315,476 1,448 0.93% (73)(16)(57)
  Certificates of deposit1,301,233 5,236 0.81% 968,821 3,643 0.76% 1,593 270 1,323 
Total interest-bearing deposits3,245,034 8,866 0.55% 2,566,436 6,638 0.52% 2,228 489 1,739 
Borrowings454,134 6,770 2.96% 430,966 6,633 3.06% 137 (213)350 
Subordinated debentures  %   %    
Total interest-bearing liabilities3,699,168 15,636 0.85% 2,997,402 13,271 0.89% 2,365 276 2,089 
Demand deposits1,281,690    1,078,200       
Other noninterest-bearing liabilities93,362    76,005       
  Total liabilities5,074,220    4,151,607       
            
Shareholders’ equity791,152    596,472       
            
  Total liabilities and equity$5,865,372    $4,748,079       
            
Net interest income (tax-equivalent basis)$93,345    $74,165   $19,180 $(124)$19,304 
Reconcilement of Non-GAAP Financial Measures         
  Bank-owned life insurance (3,797)   (1,416)  (2,381)  
  Tax-equivalent basis adjustment (1,108)   (1,019)  $(89)  
Net interest income (GAAP) $88,440    $71,730   $16,710   
            
Interest rate spread (1) 3.26%   3.15%    
Interest expense as a percent of average earning assets 0.59%   0.61%    
Net interest margin (tax equivalent basis) (2) 3.52%   3.43%    
Total cost of deposits  0.39%   0.37%    
              

(1) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.  Fully tax equivalent.
(2) Net interest margin is net interest income expressed as a percentage of average earning assets.  Fully tax equivalent.

 
TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands)
 
 Three Months Ended Six Months Ended
 June 30, June 30,
 2015 2014 2015 2014
INTEREST INCOME:       
Loans, including fees$48,170  $39,939  $95,511  $79,150 
Investment securities3,321  2,396  6,658  4,385 
Interest-bearing deposits in financial institutions and federal funds sold56  111  181  319 
Mortgage loans held for sale1,161  719  1,726  1,147 
Total Interest Income52,708  43,165  104,076  85,001 
        
INTEREST EXPENSE:       
Deposits4,442  3,295  8,866  6,638 
Advances from the Federal Home Loan Bank3,365  3,320  6,739  6,606 
Repurchase agreements and other borrowings17  12  31  27 
Total Interest Expense7,824  6,627  15,636  13,271 
        
Net Interest Income44,884  36,537  88,440  71,730 
        
PROVISION FOR LOAN LOSSES1,723  (833) 2,045  (503)
        
Net Interest Income after Provision for Loan Losses43,161  37,370  86,395  72,233 
        
NONINTEREST INCOME:       
Residential mortgage banking income, net10,251  7,735  18,694  12,798 
Real estate brokerage and property management income, net4,584  3,248  8,539  6,539 
Insurance commissions and other title fees and income, net9,885  8,893  20,934  17,954 
Service charges on deposit accounts2,326  2,366  4,523  4,498 
Credit card merchant fees, net566  965  998  1,738 
Other income5,354  2,139  8,044  4,546 
Net gain (loss) on investment securities119  (62) 169  (60)
Total Noninterest Income33,085  25,284  61,901  48,013 
        
NONINTEREST EXPENSE:       
Salaries and employee benefits26,544  25,325  54,223  48,721 
Occupancy expense4,856  4,393  9,786  8,569 
Furniture and equipment2,369  2,040  4,738  4,040 
Other expenses15,298  12,910  30,760  24,419 
Total Noninterest Expense49,067  44,668  99,507  85,749 
        
Income before income tax expense and noncontrolling interest27,179  17,986  48,789  34,497 
        
Provision for income tax expense8,201  5,432  14,586  10,337 
        
Net income18,978  12,554  34,203  24,160 
        
Net income attributable to noncontrolling interest(1,166) (878) (1,853) (1,352)
        
Net income attributable to TowneBank$17,812  $11,676  $32,350  $22,808 
        
Preferred stock dividends  191  13  382 
        
Net income available to common shareholders$17,812  $11,485  $32,337  $22,426 
        
Per common share information       
Basic earnings$0.35  $0.33  $0.64  $0.64 
Diluted earnings$0.35  $0.33  $0.63  $0.64 
Cash dividends declared$0.12  $0.11  $0.23  $0.21 
                


TOWNEBANK
Consolidated Statements of Comprehensive Income (unaudited)
(dollars in thousands)
 
 Three Months Ended Six Months Ended
 June 30, June 30,
 2015 2014 2015 2014
Net income$18,978  $12,555  $34,203  $24,160 
        
Other comprehensive income (loss)       
        
Unrealized gains (losses) on securities       
Unrealized holding gains (losses) arising during the period(3,200) 1,445  (286) 1,804 
Deferred tax expense1,120  (506) 100  (632)
Realized gains reclassified into earnings  62  (49) 60 
Deferred tax benefit  (22) 17  (21)
Net unrealized gains (losses)(2,080) 979  (218) 1,211 
        
Defined benefit retirement plan       
Amortization18    78   
Deferred tax expense(6)   (27)  
Change in defined benefit retirement plan, net of tax12    51   
        
Other comprehensive income (loss), net of tax(2,068) 979  (167) 1,211 
        
Comprehensive income$16,910  $13,534  $34,036  $25,371 
                


TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands)
 
 June 30, December 31,
 2015 2014  2014 
 (unaudited)   (1)
ASSETS     
Cash and due from banks$184,099  $268,012  $212,994 
Interest-bearing deposits in financial institutions1,011  1,011  1,011 
Total Cash and Cash Equivalents185,110  269,023  214,005 
Securities available for sale, at fair value759,425  549,177  603,908 
Securities held to maturity, at amortized cost80,195  88,148  85,247 
Federal Home Loan Bank stock, at amortized cost24,058  21,987  22,157 
Total Securities863,678  659,312  711,312 
Mortgage loans held for sale165,994  91,763  71,390 
Loans, net of unearned income and deferred costs:     
Real estate - residential 1-4 family948,138  828,832  837,370 
Real estate - commercial1,748,567  1,387,048  1,447,078 
Real estate - construction and land development554,053  487,613  452,481 
Real estate - multifamily137,378  55,620  51,472 
Commercial and industrial business732,936  658,839  700,623 
Consumer and other loans107,055  51,246  75,365 
Loans, net of unearned income and deferred costs4,228,127  3,469,198  3,564,389 
Less:  Allowance for loan losses(37,290) (35,786) (35,917)
Net Loans4,190,837  3,433,412  3,528,472 
Premises and equipment, net172,492  152,646  155,774 
Goodwill153,191  111,761  113,159 
Other intangible assets, net22,016  18,373  22,509 
Bank-owned life insurance policies146,729  57,779  58,716 
Other assets155,134  115,774  107,148 
TOTAL ASSETS$6,055,181  $4,909,843  $4,982,485 
LIABILITIES AND EQUITY     
Liabilities     
Deposits:     
  Noninterest-bearing demand$1,363,551  $1,203,040  $1,224,466 
  Interest-bearing:     
Demand and money market accounts1,680,038  1,306,595  1,365,183 
Savings300,203  192,932  301,033 
Certificates of deposit1,342,860  1,093,262  955,920 
Total Deposits4,686,652  3,795,829  3,846,602 
Advances from the Federal Home Loan Bank437,584  394,620  398,181 
Repurchase agreements and other borrowings35,737  27,525  31,893 
Total Borrowings473,321  422,145  430,074 
Other liabilities92,317  87,057  87,533 
TOTAL LIABILITIES5,252,290  4,305,031  4,364,209 
Shareholders’ Equity     
Preferred stock: 2,000,000 shares authorized     
  0 shares issued at June 30, 2015 and 76,458 shares issued     
  at June 30, 2014 and December 31, 2014  76,458  76,458 
Common stock, $1.667 par: 90,000,000 shares authorized     
  51,551,312; 35,516,140; and 35,785,679 shares issued at     
  June 30, 2015 and 2014 and December 31, 2014, respectively85,936  59,205  59,655 
Capital surplus532,646  315,946  317,718 
Retained earnings175,145  143,519  154,655 
Common stock issued to deferred compensation trust, at cost     
  651,738; 617,886; and 627,730 shares at     
  June 30, 2015 and 2014 and December 31, 2014, respectively(10,110) (9,508) (9,674)
Deferred compensation trust10,110  9,508  9,674 
Accumulated other comprehensive income291  867  458 
TOTAL SHAREHOLDERS’ EQUITY794,018  595,995  608,944 
Noncontrolling interests8,873  8,817  9,332 
TOTAL EQUITY802,891  604,812  618,276 
TOTAL LIABILITIES AND EQUITY$6,055,181  $4,909,843  $4,982,485 
            

(1) As derived from the audited consolidated financial statements for December 31, 2014.

 
TOWNEBANK
June 30, 2015
Reconcilement of Non-GAAP Financial Measures:
(dollars in thousands)
       
       
  Three Months Ended
  June 30, June 30, December 31,
  2015 2014 2014
       
Return on average assets (GAAP basis) 1.21% 0.97% 0.57%
Impact of excluding average goodwill and other intangibles and amortization 0.07% 0.02% 0.06%
Return on average tangible assets (Non-GAAP) 1.28% 0.99% 0.63%
       
Return on average equity (GAAP basis) 8.93% 7.79% 4.62%
Impact of excluding average goodwill and other intangibles and amortization 2.84% 2.41% 1.73%
Return on average tangible equity (Non-GAAP) 11.77% 10.2% 6.35%
       
Return on average common equity (GAAP basis) 9.02% 8.93% 5.21%
Impact of excluding average goodwill and other intangibles and amortization 2.91% 3.31% 2.31%
Return on average tangible common equity (Non-GAAP) 11.93% 12.24% 7.52%
       
Book value (GAAP basis) $15.4  $14.63  $14.88 
Impact of excluding average goodwill and other intangibles and amortization (3.40) (3.63) (3.79)
Tangible book value $12.00  $10.96  $11.09 
       

 

For more information contact:
G. Robert Aston, Jr., Chairman and CEO, 757-638-6780
Clyde E. McFarland, Jr., Senior Executive Vice President and CFO, 757-638-6801
William B. Littreal, Chief Investment Relations Officer and COO, 757-638-6813

Primary Logo

NEXT ARTICLE

More From BioPortfolio on "TowneBank Reports Second Quarter Earnings"

Advertisement
Quick Search
Advertisement
Advertisement

 

Relevant Topics

Mergers & Acquisitions
Commercial and market reports on mergers and acquisitions in the biotechnology, pharmaceutical, medical device and life-science industries. Mergers and acquisitions (abbreviated M&A;) is an aspect of corporate strategy, corporate finance and manageme...

The Top 100 Pharmaceutical Companies
Top 10 biotech and pharmaceutical companies worldwide based on market value in 2015 2015 ranking of the global top 10 biotech and pharmaceutical companies based on revenue (in billion U.S. dollars) Johnson & Johnson, U.S. 74...