This earnings release should be read in conjunction with the Company’s Q1 2024 Investor Update, a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the
The Company recorded total revenue of
The Company’s return on average assets was 0.54%, return on average equity was 5.94%, and return on average tangible equity was 6.45% for the quarter ended
The net interest margin declined to 2.20% for the quarter ended
During the first quarter of 2024, deposits grew
The following are select highlights for the period ended
Wealth Management:
- Gross new business inflows for Q1 2024 totaled
$236 million ($138 million managed). - AUM/AUA in our
Wealth Management Division totaled$11.5 billion atMarch 31, 2024 compared to$10.9 billion atDecember 31, 2023 , which represents an increase of 6% on a linked quarter basis. - Wealth Management fee income was
$14.4 million in Q1 2024, which amounted to 27% of total revenue for the quarter.
Commercial Banking and Balance Sheet Management:
- Total deposits grew by
$202.6 million to$5.48 billion atMarch 31, 2024 compared to$5.27 billion atDecember 31, 2023 . - Borrowings decreased
$284.3 million to$119.5 million atMarch 31, 2024 from$403.8 million atDecember 31, 2023 . - Total loans declined
$73.7 million to$5.36 billion forMarch 31, 2024 from$5.44 billion atDecember 31, 2023 . - Commercial and industrial lending (“C&I”) loan/lease balances represent 42% of the total loan portfolio at
March 31, 2024 . - Fee income on unused commercial lines of credit totaled
$827,000 for Q1 2024. - The net interest margin ("NIM") was 2.20% in Q1 2024, a decrease from 2.29% at Q4 2023 and 2.88% at Q1 2023.
- Noninterest-bearing demand deposits amounted to 17% of total deposits as of
March 31, 2024 . - Core deposits (which includes noninterest-bearing demand and interest-bearing demand, savings and money market accounts) totaled 88% of total deposits at
March 31, 2024 .
Capital Management:
- Tangible book value per share remained relatively flat at
$30.21 per share atMarch 31, 2024 compared to$30.31 atDecember 31, 2023 . - During the first quarter, the Company repurchased 100,000 shares of Company stock at a cost of
$2.4 million . For the full year 2023, the Company repurchased 455,341 shares at a cost of$12.5 million . - At
March 31, 2024 , the Tier 1 Leverage Ratio stood at 11.02% forPeapack-Gladstone Bank (the "Bank") and 9.36% for the Company. The Common Equity Tier 1 Ratio (to Risk-Weighted Assets) was 13.86% for the Bank and 11.76% for the Company atMarch 31, 2024 . These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.
SUMMARY INCOME STATEMENT DETAILS:
The following tables summarize specified financial details for the periods shown.
Three Months Ended | Three Months Ended | ||||||||||||||||
Increase/ | |||||||||||||||||
(Dollars in millions, except per share data) | 2024 | 2023 | (Decrease) | ||||||||||||||
Net interest income | $ | 34.38 | $ | 43.98 | $ | (9.60 | ) | (22 | )% | ||||||||
Wealth management fee income | 14.41 | 13.76 | 0.65 | 5 | |||||||||||||
Capital markets activity | 1.27 | 0.97 | 0.30 | 31 | |||||||||||||
Other income (a) | 3.02 | 3.33 | (0.31 | ) | (9 | ) | |||||||||||
Total other income | 18.70 | 18.06 | 0.64 | 4 | |||||||||||||
Total Revenue | 53.08 | 62.04 | (8.96 | ) | (14 | )% | |||||||||||
Operating expenses (b) | 40.04 | 35.57 | 4.47 | 13 | |||||||||||||
Pretax income before provision for credit losses | 13.04 | 26.47 | (13.43 | ) | (51 | ) | |||||||||||
Provision for credit losses | 0.63 | 1.51 | (0.88 | ) | (58 | ) | |||||||||||
Pretax income | 12.41 | 24.96 | (12.55 | ) | (50 | ) | |||||||||||
Income tax expense | 3.78 | 6.60 | (2.82 | ) | (43 | ) | |||||||||||
Net income | $ | 8.63 | $ | 18.36 | $ | (9.73 | ) | (53 | )% | ||||||||
Diluted EPS | $ | 0.48 | $ | 1.01 | $ | (0.53 | ) | (52 | )% | ||||||||
Return on average assets annualized | 0.54 | % | 1.16 | % | (0.62 | ) | |||||||||||
Return on average equity annualized | 5.94 | % | 13.50 | % | (7.56 | ) |
(a) Other income for the quarter ended
(b) The quarter ended
Three Months Ended | Three Months Ended | ||||||||||||||||
Increase/ | |||||||||||||||||
(Dollars in millions, except per share data) | 2024 | 2023 | (Decrease) | ||||||||||||||
Net interest income | $ | 34.38 | $ | 36.68 | $ | (2.30 | ) | (6 | )% | ||||||||
Wealth management fee income | 14.41 | 13.76 | 0.65 | 5 | |||||||||||||
Capital markets activity | 1.27 | 0.30 | 0.97 | 323 | |||||||||||||
Other income (a) | 3.02 | 3.53 | (0.51 | ) | (14 | ) | |||||||||||
Total other income | 18.70 | 17.59 | 1.11 | 6 | |||||||||||||
Total Revenue | 53.08 | 54.27 | (1.19 | ) | (2 | )% | |||||||||||
Operating expenses | 40.04 | 37.62 | 2.42 | 6 | |||||||||||||
Pretax income before provision for credit losses | 13.04 | 16.65 | (3.61 | ) | (22 | ) | |||||||||||
Provision for credit losses | 0.63 | 5.03 | (4.40 | ) | (87 | ) | |||||||||||
Pretax income | 12.41 | 11.62 | 0.79 | 7 | |||||||||||||
Income tax expense | 3.78 | 3.02 | 0.76 | 25 | |||||||||||||
Net income | $ | 8.63 | $ | 8.60 | $ | 0.03 | 0 | % | |||||||||
Diluted EPS | $ | 0.48 | $ | 0.48 | $ | - | 0 | % | |||||||||
Return on average assets annualized | 0.54 | % | 0.53 | % | 0.01 | ||||||||||||
Return on average equity annualized | 5.94 | % | 6.13 | % | (0.19 | ) |
(a) Other income for the quarter ended
SUPPLEMENTAL QUARTERLY DETAILS:
Wealth Management
AUM/AUA in the Bank’s
Loans / Commercial Banking
Total loans declined
Net Interest Income (NII)/Net Interest Margin (NIM)
The Company’s NII of
Funding / Liquidity / Interest Rate Risk Management
Total deposits increased
At
The Company maintains additional liquidity resources of approximately
The Company's total on and off-balance sheet liquidity totaled
Income from Capital Markets Activities
Noninterest income from Capital Markets activities (detailed below) totaled
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||
(Dollars in thousands, except per share data) | 2024 | 2023 | 2023 | |||||||||
Gain on loans held for sale at fair value (Mortgage banking) | $ | 56 | $ | 18 | $ | 21 | ||||||
Gain on sale of SBA loans | 400 | 239 | 865 | |||||||||
Corporate advisory fee income | 818 | 39 | 80 | |||||||||
Total capital markets activity | $ | 1,274 | $ | 296 | $ | 966 |
Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)
Other noninterest income was
Operating Expenses
The Company’s total operating expenses were
Income Taxes
The effective tax rate for the three months ended
Asset Quality / Provision for Credit Losses
Nonperforming assets (which does not include modified loans that are performing in accordance with their terms) were
Criticized and classified loans totaled
For the quarter ended
At
Capital
The Company’s capital position declined during the first quarter of 2024 due to the repurchase of 100,000 shares through the Company's stock repurchase program at a total cost of
Tangible book value per share decreased during Q1 2024 to
The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of
On
ABOUT THE COMPANY
FORWARD-LOOKING STATEMENTS
The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:
- our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
- the impact of anticipated higher operating expenses in 2024 and beyond;
- our ability to successfully integrate wealth management firm and team acquisitions;
- our ability to successfully integrate our expanded employee base;
- an unexpected decline in the economy, in particular in our
New Jersey andNew York market areas, including potential recessionary conditions; - declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
- declines in the value in our investment portfolio;
- impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
- the continuing impact of the COVID-19 pandemic on our business and results of operation;
- higher than expected increases in our allowance for credit losses;
- higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs;
- inflation and changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
- decline in real estate values within our market areas;
- legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
- successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
- higher than expected
FDIC insurance premiums; - adverse weather conditions;
- the current or anticipated impact of military conflict, terrorism or other geopolitical events;
- our inability to successfully generate new business in new geographic markets, including our expansion into
New York City ; - a reduction in our lower-cost funding sources;
- changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
- our inability to adapt to technological changes;
- claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
- our inability to retain key employees;
- demands for loans and deposits in our market areas;
- adverse changes in securities markets;
- changes in
New York City rent regulation law; - changes in governmental regulation, including, but not limited to, any increase in
FDIC insurance premiums and changes in the monetary policies of theU.S. Treasury and theBoard of Governors of theFederal Reserve System ; - changes in accounting policies and practices; and/or
- other unexpected material adverse changes in our operations or earnings.
A discussion of these and other factors that could affect our results is included in our
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Contact:
T: 908-306-8933
(Tables to follow)
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Interest income | $ | 79,194 | $ | 80,178 | $ | 78,489 | $ | 74,852 | $ | 70,491 | ||||||||||
Interest expense | 44,819 | 43,503 | 41,974 | 35,931 | 26,513 | |||||||||||||||
Net interest income | 34,375 | 36,675 | 36,515 | 38,921 | 43,978 | |||||||||||||||
Wealth management fee income | 14,407 | 13,758 | 13,975 | 14,252 | 13,762 | |||||||||||||||
Service charges and fees | 1,322 | 1,255 | 1,319 | 1,320 | 1,258 | |||||||||||||||
Bank owned life insurance | 503 | 357 | 310 | 305 | 297 | |||||||||||||||
Gain on loans held for sale at fair value (Mortgage banking) | 56 | 18 | 37 | 15 | 21 | |||||||||||||||
Gain on sale of SBA loans | 400 | 239 | 491 | 838 | 865 | |||||||||||||||
Corporate advisory fee income | 818 | 39 | 85 | 15 | 80 | |||||||||||||||
Other income (A) | 1,306 | 1,339 | 3,541 | 2,039 | 1,567 | |||||||||||||||
Fair value adjustment for CRA equity security | (111 | ) | 585 | (404 | ) | (209 | ) | 209 | ||||||||||||
Total other income | 18,701 | 17,590 | 19,354 | 18,575 | 18,059 | |||||||||||||||
Total revenue | 53,076 | 54,265 | 55,869 | 57,496 | 62,037 | |||||||||||||||
Salaries and employee benefits (B) | 28,476 | 24,320 | 25,264 | 26,354 | 24,586 | |||||||||||||||
Premises and equipment | 5,081 | 5,416 | 5,214 | 4,729 | 4,374 | |||||||||||||||
945 | 765 | 741 | 729 | 711 | ||||||||||||||||
Other expenses | 5,539 | 7,115 | 6,194 | 5,880 | 5,903 | |||||||||||||||
Total operating expenses | 40,041 | 37,616 | 37,413 | 37,692 | 35,574 | |||||||||||||||
Pretax income before provision for credit losses | 13,035 | 16,649 | 18,456 | 19,804 | 26,463 | |||||||||||||||
Provision for credit losses | 627 | 5,026 | 5,856 | 1,696 | 1,513 | |||||||||||||||
Income before income taxes | 12,408 | 11,623 | 12,600 | 18,108 | 24,950 | |||||||||||||||
Income tax expense | 3,777 | 3,024 | 3,845 | 4,963 | 6,595 | |||||||||||||||
Net income | $ | 8,631 | $ | 8,599 | $ | 8,755 | $ | 13,145 | $ | 18,355 | ||||||||||
Per Common Share Data: | ||||||||||||||||||||
Earnings per share (basic) | $ | 0.49 | $ | 0.48 | $ | 0.49 | $ | 0.73 | $ | 1.03 | ||||||||||
Earnings per share (diluted) | 0.48 | 0.48 | 0.49 | 0.73 | 1.01 | |||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
Basic | 17,711,639 | 17,770,158 | 17,856,961 | 17,930,611 | 17,841,203 | |||||||||||||||
Diluted | 17,805,347 | 17,961,400 | 18,010,127 | 18,078,848 | 18,263,310 | |||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets annualized (ROAA) | 0.54 | % | 0.53 | % | 0.54 | % | 0.82 | % | 1.16 | % | ||||||||||
Return on average equity annualized (ROAE) | 5.94 | % | 6.13 | % | 6.20 | % | 9.43 | % | 13.50 | % | ||||||||||
Return on average tangible equity annualized (ROATCE) (C) | 6.45 | % | 6.68 | % | 6.75 | % | 10.30 | % | 14.78 | % | ||||||||||
Net interest margin (tax-equivalent basis) | 2.20 | % | 2.29 | % | 2.28 | % | 2.49 | % | 2.88 | % | ||||||||||
GAAP efficiency ratio (D) | 75.44 | % | 69.32 | % | 66.97 | % | 65.56 | % | 57.34 | % | ||||||||||
Operating expenses / average assets annualized | 2.51 | % | 2.33 | % | 2.31 | % | 2.36 | % | 2.26 | % |
(A) The
(B) The
(C) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See Non-GAAP financial measures reconciliation included in these tables.
(D) Calculated as total operating expenses as a percentage of total revenue. For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
As of | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 5,769 | $ | 5,887 | $ | 7,400 | $ | 4,859 | $ | 6,514 | ||||||||||
Federal funds sold | — | — | — | — | — | |||||||||||||||
Interest-earning deposits | 189,069 | 181,784 | 180,469 | 166,769 | 244,779 | |||||||||||||||
Total cash and cash equivalents | 194,838 | 187,671 | 187,869 | 171,628 | 251,293 | |||||||||||||||
Securities available for sale | 550,870 | 550,617 | 521,005 | 540,519 | 556,266 | |||||||||||||||
Securities held to maturity | 106,498 | 107,755 | 108,940 | 110,438 | 111,609 | |||||||||||||||
CRA equity security, at fair value | 13,055 | 13,166 | 12,581 | 12,985 | 13,194 | |||||||||||||||
FHLB and FRB stock, at cost (A) | 18,079 | 31,044 | 34,158 | 35,402 | 30,338 | |||||||||||||||
Residential mortgage | 581,426 | 578,427 | 585,295 | 575,238 | 544,655 | |||||||||||||||
Multifamily mortgage | 1,827,165 | 1,836,390 | 1,871,853 | 1,884,369 | 1,871,387 | |||||||||||||||
Commercial mortgage | 615,964 | 637,625 | 622,469 | 624,710 | 613,911 | |||||||||||||||
Commercial and industrial loans | 2,235,342 | 2,284,940 | 2,321,917 | 2,278,133 | 2,266,837 | |||||||||||||||
Consumer loans | 66,827 | 62,036 | 57,227 | 52,098 | 49,002 | |||||||||||||||
Home equity lines of credit | 35,542 | 36,464 | 34,411 | 34,397 | 33,294 | |||||||||||||||
Other loans | 184 | 238 | 265 | 269 | 443 | |||||||||||||||
Total loans | 5,362,450 | 5,436,120 | 5,493,437 | 5,449,214 | 5,379,529 | |||||||||||||||
Less: Allowance for credit losses | 66,251 | 65,888 | 68,592 | 62,704 | 62,250 | |||||||||||||||
Net loans | 5,296,199 | 5,370,232 | 5,424,845 | 5,386,510 | 5,317,279 | |||||||||||||||
Premises and equipment | 24,494 | 24,166 | 23,969 | 23,814 | 23,782 | |||||||||||||||
Other real estate owned | — | — | — | — | 116 | |||||||||||||||
Accrued interest receivable | 32,672 | 30,676 | 22,889 | 20,865 | 19,143 | |||||||||||||||
Bank owned life insurance | 47,580 | 47,581 | 47,509 | 47,382 | 47,261 | |||||||||||||||
45,742 | 46,014 | 46,286 | 46,624 | 46,979 | ||||||||||||||||
Finance lease right-of-use assets | 1,900 | 2,087 | 2,274 | 2,461 | 2,648 | |||||||||||||||
Operating lease right-of-use assets | 16,035 | 12,096 | 12,800 | 13,500 | 12,262 | |||||||||||||||
Other assets | 60,591 | 53,752 | 76,456 | 67,572 | 47,848 | |||||||||||||||
TOTAL ASSETS | $ | 6,408,553 | $ | 6,476,857 | $ | 6,521,581 | $ | 6,479,700 | $ | 6,480,018 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 914,893 | $ | 957,687 | $ | 947,405 | $ | 1,024,105 | $ | 1,096,549 | ||||||||||
Interest-bearing demand deposits | 3,029,119 | 2,882,193 | 2,871,359 | 2,816,913 | 2,797,493 | |||||||||||||||
Savings | 108,305 | 111,573 | 117,905 | 120,082 | 132,523 | |||||||||||||||
Money market accounts | 775,132 | 740,559 | 761,833 | 763,026 | 873,329 | |||||||||||||||
Certificates of deposit – Retail | 486,079 | 443,791 | 422,291 | 384,106 | 357,131 | |||||||||||||||
Certificates of deposit – Listing Service | 7,704 | 7,804 | 9,103 | 10,822 | 15,922 | |||||||||||||||
Subtotal “customer” deposits | 5,321,232 | 5,143,607 | 5,129,896 | 5,119,054 | 5,272,947 | |||||||||||||||
IB Demand – Brokered | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
Certificates of deposit – Brokered | 145,480 | 120,507 | 119,463 | 69,443 | 25,895 | |||||||||||||||
Total deposits | 5,476,712 | 5,274,114 | 5,259,359 | 5,198,497 | 5,308,842 | |||||||||||||||
Short-term borrowings | 119,490 | 403,814 | 470,576 | 485,360 | 378,800 | |||||||||||||||
Finance lease liability | 3,104 | 3,430 | 3,752 | 4,071 | 4,385 | |||||||||||||||
Operating lease liability | 17,630 | 12,876 | 13,595 | 14,308 | 13,082 | |||||||||||||||
Subordinated debt, net | 133,346 | 133,274 | 133,203 | 133,131 | 133,059 | |||||||||||||||
Due to brokers | — | — | — | — | 8,308 | |||||||||||||||
Other liabilities | 75,892 | 65,668 | 82,140 | 79,264 | 78,584 | |||||||||||||||
TOTAL LIABILITIES | 5,826,174 | 5,893,176 | 5,962,625 | 5,914,631 | 5,925,060 | |||||||||||||||
Shareholders’ equity | 582,379 | 583,681 | 558,956 | 565,069 | 554,958 | |||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||
SHAREHOLDERS’ EQUITY | $ | 6,408,553 | $ | 6,476,857 | $ | 6,521,581 | $ | 6,479,700 | $ | 6,480,018 | ||||||||||
Assets under management and / or administration at Peapack-Gladstone Bank’s Division (market value, not included above-dollars in billions) | $ | 11.5 | $ | 10.9 | $ | 10.4 | $ | 10.7 | $ | 10.4 |
(A) FHLB means "
.
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Asset Quality: | ||||||||||||||||||||
Loans past due over 90 days and still accruing | $ | 35 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Nonaccrual loans (A) | 69,811 | 61,324 | 70,809 | 34,505 | 28,659 | |||||||||||||||
Other real estate owned | — | — | — | — | 116 | |||||||||||||||
Total nonperforming assets | $ | 69,846 | $ | 61,324 | $ | 70,809 | $ | 34,505 | $ | 28,775 | ||||||||||
Nonperforming loans to total loans | 1.30 | % | 1.13 | % | 1.29 | % | 0.63 | % | 0.53 | % | ||||||||||
Nonperforming assets to total assets | 1.09 | % | 0.95 | % | 1.09 | % | 0.53 | % | 0.44 | % | ||||||||||
Performing modifications (B)(C) | $ | 12,311 | $ | 248 | $ | 248 | $ | 248 | $ | 248 | ||||||||||
Loans past due 30 through 89 days and still accruing (D) | $ | 73,699 | $ | 34,589 | $ | 9,780 | $ | 14,524 | $ | 2,762 | ||||||||||
Loans subject to special mention | $ | 59,450 | $ | 71,397 | $ | 53,328 | $ | 53,606 | $ | 46,566 | ||||||||||
Classified loans | $ | 117,869 | $ | 84,372 | $ | 94,866 | $ | 58,655 | $ | 58,010 | ||||||||||
Individually evaluated loans | $ | 69,530 | $ | 60,710 | $ | 70,184 | $ | 33,867 | $ | 27,736 | ||||||||||
Allowance for credit losses ("ACL"): | ||||||||||||||||||||
Beginning of quarter | $ | 65,888 | $ | 68,592 | $ | 62,704 | $ | 62,250 | $ | 60,829 | ||||||||||
Provision for credit losses (E) | 615 | 5,082 | 5,944 | 1,666 | 1,464 | |||||||||||||||
(Charge-offs)/recoveries, net (F) | (252 | ) | (7,786 | ) | (56 | ) | (1,212 | ) | (43 | ) | ||||||||||
End of quarter | $ | 66,251 | $ | 65,888 | $ | 68,592 | $ | 62,704 | $ | 62,250 | ||||||||||
ACL to nonperforming loans | 94.85 | % | 107.44 | % | 96.87 | % | 181.72 | % | 217.21 | % | ||||||||||
ACL to total loans | 1.24 | % | 1.21 | % | 1.25 | % | 1.15 | % | 1.16 | % | ||||||||||
Collectively evaluated ACL to total loans (G) | 1.15 | % | 1.13 | % | 1.10 | % | 1.11 | % | 1.11 | % |
(A) Includes one freight credit totaling
(B) Amounts reflect modifications that are paying according to modified terms.
(C) Excludes modifications included in nonaccrual loans of
(D) Includes
(E) Excludes a provision of
(F) Net charge-offs for the quarter ended
(G) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of | ||||||||||||||||||
2024 | 2023 | 2023 | ||||||||||||||||
Capital Adequacy | ||||||||||||||||||
Equity to total assets (A) | 9.09 | % | 9.01 | % | 8.56 | % | ||||||||||||
Tangible equity to tangible assets (B) | 8.43 | % | 8.36 | % | 7.90 | % | ||||||||||||
Book value per share (C) | $ | 32.79 | $ | 32.90 | $ | 30.81 | ||||||||||||
Tangible book value per share (D) | $ | 30.21 | $ | 30.31 | $ | 28.20 | ||||||||||||
Tangible equity to tangible assets excluding other comprehensive loss* | 9.40 | % | 9.28 | % | 8.85 | % | ||||||||||||
Tangible book value per share excluding other comprehensive loss* | $ | 34.03 | $ | 33.97 | $ | 31.94 |
*Excludes other comprehensive loss of
(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.
(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.
(C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.
(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.
As of | |||||||||||||||||||||
2024 | 2023 | 2023 | |||||||||||||||||||
Tier I leverage | $ | 602,493 | 9.36 | % | $ | 600,444 | 9.19 | % | $ | 573,154 | 9.02 | % | |||||||||
Tier I capital to risk-weighted assets | 602,493 | 11.76 | 600,444 | 11.43 | 573,154 | 11.39 | |||||||||||||||
Common equity tier I capital ratio to risk-weighted assets | 602,481 | 11.76 | 600,432 | 11.43 | 573,136 | 11.39 | |||||||||||||||
Tier I & II capital to risk-weighted assets | 785,909 | 15.34 | 785,413 | 14.95 | 762,095 | 15.15 | |||||||||||||||
Tier I leverage (E) | $ | 709,744 | 11.02 | % | $ | 707,446 | 10.83 | % | $ | 700,858 | 11.03 | % | |||||||||
Tier I capital to risk-weighted assets (F) | 709,744 | 13.86 | 707,446 | 13.48 | 700,858 | 13.93 | |||||||||||||||
Common equity tier I capital ratio to risk-weighted assets (G) | 709,732 | 13.86 | 707,434 | 13.47 | 700,840 | 13.93 | |||||||||||||||
Tier I & II capital to risk-weighted assets (H) | 773,781 | 15.11 | 773,083 | 14.73 | 763,732 | 15.18 |
(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% (
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% (
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% (
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% (
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)
For the Quarters Ended | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Residential loans retained | $ | 11,661 | $ | 5,895 | $ | 21,310 | $ | 39,358 | $ | 30,303 | ||||||||||
Residential loans sold | 4,025 | 1,449 | 2,503 | 1,072 | 1,477 | |||||||||||||||
Total residential loans | 15,686 | 7,344 | 23,813 | 40,430 | 31,780 | |||||||||||||||
Commercial real estate | 11,500 | 21,375 | 3,900 | 43,235 | 18,990 | |||||||||||||||
Multifamily | 1,900 | 5,725 | 3,000 | 26,662 | 30,150 | |||||||||||||||
Commercial (C&I) loans (A) (B) | 145,803 | 145,397 | 176,845 | 158,972 | 207,814 | |||||||||||||||
SBA | 2,790 | 7,326 | 300 | 13,713 | 9,950 | |||||||||||||||
Wealth lines of credit (A) | 3,850 | 350 | 6,875 | 3,950 | 23,225 | |||||||||||||||
Total commercial loans | 165,843 | 180,173 | 190,920 | 246,532 | 290,129 | |||||||||||||||
Installment loans | 6,868 | 2,946 | 6,999 | 4,587 | 12,086 | |||||||||||||||
Home equity lines of credit (A) | 2,103 | 4,174 | 6,275 | 6,107 | 2,921 | |||||||||||||||
Total loans closed | $ | 190,500 | $ | 194,637 | $ | 228,007 | $ | 297,656 | $ | 336,916 |
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||||||
Average | Income/ | Annualized | Average | Income/ | Annualized | |||||||||||||||||||
Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Taxable (A) | $ | 793,675 | $ | 5,136 | 2.59 | % | $ | 791,125 | $ | 4,471 | 2.26 | % | ||||||||||||
Tax-exempt (A) (B) | — | — | — | 1,864 | 19 | 4.08 | ||||||||||||||||||
Loans (B) (C): | ||||||||||||||||||||||||
Mortgages | 577,648 | 5,420 | 3.75 | 529,570 | 4,283 | 3.24 | ||||||||||||||||||
Commercial mortgages | 2,460,403 | 27,541 | 4.48 | 2,478,645 | 25,917 | 4.18 | ||||||||||||||||||
Commercial | 2,240,161 | 37,559 | 6.71 | 2,201,801 | 33,369 | 6.06 | ||||||||||||||||||
Commercial construction | 18,927 | 428 | 9.05 | 4,296 | 88 | 8.19 | ||||||||||||||||||
Installment | 65,287 | 1,113 | 6.82 | 39,945 | 609 | 6.10 | ||||||||||||||||||
Home equity | 36,406 | 737 | 8.10 | 33,839 | 591 | 6.99 | ||||||||||||||||||
Other | 214 | 7 | 13.08 | 276 | 7 | 10.14 | ||||||||||||||||||
Total loans | 5,399,046 | 72,805 | 5.39 | 5,288,372 | 64,864 | 4.91 | ||||||||||||||||||
Federal funds sold | — | — | — | — | — | — | ||||||||||||||||||
Interest-earning deposits | 140,097 | 1,522 | 4.35 | 163,225 | 1,538 | 3.77 | ||||||||||||||||||
Total interest-earning assets | 6,332,818 | 79,463 | 5.02 | % | 6,244,586 | 70,892 | 4.54 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 10,105 | 10,449 | ||||||||||||||||||||||
Allowance for credit losses | (67,105 | ) | (61,567 | ) | ||||||||||||||||||||
Premises and equipment | 24,393 | 23,927 | ||||||||||||||||||||||
Other assets | 87,129 | 84,800 | ||||||||||||||||||||||
Total noninterest-earning assets | 54,522 | 57,609 | ||||||||||||||||||||||
Total assets | $ | 6,387,340 | $ | 6,302,195 | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Checking | $ | 2,954,698 | $ | 27,433 | 3.71 | % | $ | 2,567,426 | $ | 16,481 | 2.57 | % | ||||||||||||
Money markets | 757,753 | 5,525 | 2.92 | 1,124,047 | 4,874 | 1.73 | ||||||||||||||||||
Savings | 108,503 | 89 | 0.33 | 141,285 | 28 | 0.08 | ||||||||||||||||||
Certificates of deposit – retail | 477,793 | 4,855 | 4.06 | 357,953 | 1,729 | 1.93 | ||||||||||||||||||
Subtotal interest-bearing deposits | 4,298,747 | 37,902 | 3.53 | 4,190,711 | 23,112 | 2.21 | ||||||||||||||||||
Interest-bearing demand – brokered | 10,000 | 126 | 5.04 | 26,111 | 208 | 3.19 | ||||||||||||||||||
Certificates of deposit – brokered | 128,341 | 1,602 | 4.99 | 25,961 | 205 | 3.16 | ||||||||||||||||||
Total interest-bearing deposits | 4,437,088 | 39,630 | 3.57 | 4,242,783 | 23,525 | 2.22 | ||||||||||||||||||
Borrowings | 235,384 | 3,467 | 5.89 | 104,915 | 1,296 | 4.94 | ||||||||||||||||||
Capital lease obligation | 3,215 | 38 | 4.73 | 4,493 | 53 | 4.72 | ||||||||||||||||||
Subordinated debt | 133,303 | 1,684 | 5.05 | 133,017 | 1,639 | 4.93 | ||||||||||||||||||
Total interest-bearing liabilities | 4,808,990 | 44,819 | 3.73 | % | 4,485,208 | 26,513 | 2.36 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 916,848 | 1,176,495 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 80,499 | 96,631 | ||||||||||||||||||||||
Total noninterest-bearing liabilities | 997,347 | 1,273,126 | ||||||||||||||||||||||
Shareholders’ equity | 581,003 | 543,861 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,387,340 | $ | 6,302,195 | ||||||||||||||||||||
Net interest income | $ | 34,644 | $ | 44,379 | ||||||||||||||||||||
Net interest spread | 1.29 | % | 2.18 | % | ||||||||||||||||||||
Net interest margin (D) | 2.20 | % | 2.88 | % |
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||||||
Average | Income/ | Annualized | Average | Income/ | Annualized | |||||||||||||||||||
Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Taxable (A) | $ | 793,675 | $ | 5,136 | 2.59 | % | $ | 798,661 | $ | 5,202 | 2.61 | % | ||||||||||||
Tax-exempt (A) (B) | — | — | — | 106 | — | — | ||||||||||||||||||
Loans (B) (C): | ||||||||||||||||||||||||
Mortgages | 577,648 | 5,420 | 3.75 | 581,088 | 5,300 | 3.65 | ||||||||||||||||||
Commercial mortgages | 2,460,403 | 27,541 | 4.48 | 2,492,204 | 28,318 | 4.55 | ||||||||||||||||||
Commercial | 2,240,161 | 37,559 | 6.71 | 2,274,841 | 37,958 | 6.67 | ||||||||||||||||||
Commercial construction | 18,927 | 428 | 9.05 | 16,680 | 382 | 9.16 | ||||||||||||||||||
Installment | 65,287 | 1,113 | 6.82 | 59,988 | 1,037 | 6.91 | ||||||||||||||||||
Home equity | 36,406 | 737 | 8.10 | 35,570 | 721 | 8.11 | ||||||||||||||||||
Other | 214 | 7 | 13.08 | 246 | 8 | 13.01 | ||||||||||||||||||
Total loans | 5,399,046 | 72,805 | 5.39 | 5,460,617 | 73,724 | 5.40 | ||||||||||||||||||
Federal funds sold | — | — | — | — | — | — | ||||||||||||||||||
Interest-earning deposits | 140,097 | 1,522 | 4.35 | 146,699 | 1,623 | 4.43 | ||||||||||||||||||
Total interest-earning assets | 6,332,818 | 79,463 | 5.02 | % | 6,406,083 | 80,549 | 5.03 | % | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 10,105 | 10,709 | ||||||||||||||||||||||
Allowance for credit losses | (67,105 | ) | (68,289 | ) | ||||||||||||||||||||
Premises and equipment | 24,393 | 24,387 | ||||||||||||||||||||||
Other assets | 87,129 | 85,720 | ||||||||||||||||||||||
Total noninterest-earning assets | 54,522 | 52,527 | ||||||||||||||||||||||
Total assets | $ | 6,387,340 | $ | 6,458,610 | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Checking | $ | 2,954,698 | $ | 27,433 | 3.71 | % | $ | 2,890,964 | $ | 25,811 | 3.57 | % | ||||||||||||
Money markets | 757,753 | 5,525 | 2.92 | 771,051 | 5,247 | 2.72 | ||||||||||||||||||
Savings | 108,503 | 89 | 0.33 | 112,969 | 81 | 0.29 | ||||||||||||||||||
Certificates of deposit – retail | 477,793 | 4,855 | 4.06 | 440,712 | 4,086 | 3.71 | ||||||||||||||||||
Subtotal interest-bearing deposits | 4,298,747 | 37,902 | 3.53 | 4,215,696 | 35,225 | 3.34 | ||||||||||||||||||
Interest-bearing demand – brokered | 10,000 | 126 | 5.04 | 10,000 | 142 | 5.68 | ||||||||||||||||||
Certificates of deposit – brokered | 128,341 | 1,602 | 4.99 | 115,722 | 1,454 | 5.03 | ||||||||||||||||||
Total interest-bearing deposits | 4,437,088 | 39,630 | 3.57 | 4,341,418 | 36,821 | 3.39 | ||||||||||||||||||
Borrowings | 235,384 | 3,467 | 5.89 | 357,384 | 4,955 | 5.55 | ||||||||||||||||||
Capital lease obligation | 3,215 | 38 | 4.73 | 3,539 | 42 | 4.75 | ||||||||||||||||||
Subordinated debt | 133,303 | 1,684 | 5.05 | 133,234 | 1,685 | 5.06 | ||||||||||||||||||
Total interest-bearing liabilities | 4,808,990 | 44,819 | 3.73 | % | 4,835,575 | 43,503 | 3.60 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 916,848 | 963,968 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 80,499 | 98,012 | ||||||||||||||||||||||
Total noninterest-bearing liabilities | 997,347 | 1,061,980 | ||||||||||||||||||||||
Shareholders’ equity | 581,003 | 561,055 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,387,340 | $ | 6,458,610 | ||||||||||||||||||||
Net interest income | $ | 34,644 | $ | 37,046 | ||||||||||||||||||||
Net interest spread | 1.29 | % | 1.43 | % | ||||||||||||||||||||
Net interest margin (D) | 2.20 | % | 2.29 | % |
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.
We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.
(Dollars in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||
Tangible Book Value Per Share | 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
Shareholders’ equity | $ | 582,379 | $ | 583,681 | $ | 558,956 | $ | 565,069 | $ | 554,958 | ||||||||||
Less: Intangible assets, net | 45,742 | 46,014 | 46,286 | 46,624 | 46,979 | |||||||||||||||
Tangible equity | $ | 536,637 | $ | 537,667 | $ | 512,670 | $ | 518,445 | $ | 507,979 | ||||||||||
Less: other comprehensive loss | (67,760 | ) | (64,878 | ) | (81,653 | ) | (67,997 | ) | (67,445 | ) | ||||||||||
Tangible equity excluding other comprehensive loss | $ | 604,397 | $ | 602,545 | $ | 594,323 | $ | 586,442 | $ | 575,424 | ||||||||||
Period end shares outstanding | 17,761,538 | 17,739,677 | 17,816,922 | 17,887,895 | 18,014,757 | |||||||||||||||
Tangible book value per share | $ | 30.21 | $ | 30.31 | $ | 28.77 | $ | 28.98 | $ | 28.20 | ||||||||||
Tangible book value per share excluding other comprehensive loss | $ | 34.03 | $ | 33.97 | $ | 33.36 | $ | 32.78 | $ | 31.94 | ||||||||||
Book value per share | 32.79 | 32.90 | 31.37 | 31.59 | 30.81 | |||||||||||||||
Tangible Equity to Tangible Assets | ||||||||||||||||||||
Total assets | $ | 6,408,553 | $ | 6,476,857 | $ | 6,521,581 | $ | 6,479,700 | $ | 6,480,018 | ||||||||||
Less: Intangible assets, net | 45,742 | 46,014 | 46,286 | 46,624 | 46,979 | |||||||||||||||
Tangible assets | $ | 6,362,811 | $ | 6,430,843 | $ | 6,475,295 | $ | 6,433,076 | $ | 6,433,039 | ||||||||||
Less: other comprehensive loss | (67,760 | ) | (64,878 | ) | (81,653 | ) | (67,997 | ) | (67,445 | ) | ||||||||||
Tangible assets excluding other comprehensive loss | $ | 6,430,571 | $ | 6,495,721 | $ | 6,556,948 | $ | 6,501,073 | $ | 6,500,484 | ||||||||||
Tangible equity to tangible assets | 8.43 | % | 8.36 | % | 7.92 | % | 8.06 | % | 7.90 | % | ||||||||||
Tangible equity to tangible assets excluding other comprehensive loss | 9.40 | % | 9.28 | % | 9.06 | % | 9.02 | % | 8.85 | % | ||||||||||
Equity to assets | 9.09 | % | 9.01 | % | 8.57 | % | 8.72 | % | 8.56 | % |
(Dollars in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||
Return on Average Tangible Equity | 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
Net income | $ | 8,631 | $ | 8,599 | $ | 8,755 | $ | 13,145 | $ | 18,355 | ||||||||||
Average shareholders’ equity | $ | 581,003 | $ | 561,055 | $ | 565,153 | $ | 557,428 | $ | 543,861 | ||||||||||
Less: Average intangible assets, net | 45,903 | 46,167 | 46,468 | 46,828 | 47,189 | |||||||||||||||
Average tangible equity | $ | 535,100 | $ | 514,888 | $ | 518,685 | $ | 510,600 | $ | 496,672 | ||||||||||
Return on average tangible common equity | 6.45 | % | 6.68 | % | 6.75 | % | 10.30 | % | 14.78 | % |
(Dollars in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||
Efficiency Ratio | 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
Net interest income | $ | 34,375 | $ | 36,675 | $ | 36,515 | $ | 38,921 | $ | 43,978 | ||||||||||
Total other income | 18,701 | 17,590 | 19,354 | 18,575 | 18,059 | |||||||||||||||
Add: | ||||||||||||||||||||
Fair value adjustment for CRA equity security | 111 | (585 | ) | 404 | 209 | (209 | ) | |||||||||||||
Less: | ||||||||||||||||||||
Income from life insurance proceeds | (181 | ) | — | — | — | — | ||||||||||||||
Total recurring revenue | 53,006 | 53,680 | 56,273 | 57,705 | 61,828 | |||||||||||||||
Operating expenses | 40,041 | 37,616 | 37,413 | 37,692 | 35,574 | |||||||||||||||
Less: | ||||||||||||||||||||
Accelerated Expense for Retirement | — | — | — | 1,665 | 300 | |||||||||||||||
Branch Closure Expense | — | — | — | — | 175 | |||||||||||||||
Total operating expense | 40,041 | 37,616 | 37,413 | 36,027 | 35,099 | |||||||||||||||
Efficiency ratio | 75.54 | % | 70.07 | % | 66.48 | % | 62.43 | % | 56.77 | % |
Source:
2024 GlobeNewswire, Inc., source