Pennsylvania | 001-35913 | 20-4929029 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
One Oxford Centre |
301 Grant Street, Suite 2700 |
Pittsburgh, Pennsylvania 15219 |
(Address of principal executive offices) |
(Zip Code) |
(412) 304-0304 |
(Registrant’s telephone number, including area code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, no par value | TSC | Nasdaq Global Select Market | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock | TSCAP | Nasdaq Global Select Market | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock | TSCBP | Nasdaq Global Select Market |
TRISTATE CAPITAL HOLDINGS, INC. | |
By | /s/ James F. Getz |
James F. Getz | |
Chairman, President and Chief Executive Officer |
• | Net interest income (NII) grew to a record $31.3 million, increasing 8.7% from the prior year period and 3.1% from the linked quarter. |
• | Average deposits grew to $5.34 billion, up 30.4% from the same period last year and 6.1% from the linked quarter. |
• | Average loans grew to $5.46 billion, up 24.8% from the same period last year and 5.5% from the linked quarter. |
• | Private banking loans surpassed the $3 billion milestone to grow to a record $3.19 billion at period end, increasing 28.2% from one year prior and 6.9% during the quarter. |
• | Commercial loans grew to a record $2.48 billion at period end, increasing 19.9% from one year prior and 5.2% during the quarter. |
• | Non-performing loans (NPLs) and adverse rated credits declined to 0.04% and 0.47% of total loans, respectively, at period end, while allowance for loan and lease losses (ALLL) increased to 640.29% of NPLs. |
• | Non-interest expenses grew 9.0%, from the prior year period, and the bank efficiency ratio was 55.16%. |
• | 85% of Chartwell’s investment strategies surpassed their benchmarks for the trailing three years and 75% surpassed their benchmarks for the trailing five years. |
• | those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which TriState Capital operates and in which its loans are concentrated, including the effects of an increase in unemployment levels, slowdowns in economic growth and changes in demand for products or services or the value of assets under management; |
• | TriState Capital’s level of non-performing assets and the costs associated with resolving problem loans including litigation and other costs; |
• | possible loan losses, impairment and the collectability of loans; |
• | changes in market interest rates which may increase funding costs and/or reduce earning asset yields and thus reduce margin; |
• | the impact of changes in interest rates on the credit quality and value of underlying securities collateral of the loan portfolio and the effect of such changes on the market value of TriState Capital’s investment securities portfolio; |
• | federal and state regulation, supervision and examination, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder, and potential expenses associated with complying with regulations; |
• | TriState Capital’s ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms; |
• | possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations; |
• | any impairment of TriState Capital’s goodwill or other intangible assets; |
• | conditions in the financial markets that may limit TriState Capital’s access to additional funding to meet its liquidity needs; |
• | the success of TriState Capital’s growth plans, including the successful integration of past and future acquisitions; |
• | TriState Capital’s ability to fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and customer disintermediation; |
• | TriState Capital’s ability to develop and provide competitive products and services that appeal to its customers and target markets; |
• | negative perceptions or publicity with respect to any products or services offered by TriState Capital; |
• | fluctuations in the carrying value of Chartwell’s assets under management; |
• | the relative and absolute investment performance of Chartwell’s investment products; |
• | adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings; |
• | system failures or breaches of TriState Capital’s network security; |
• | TriState Capital’s ability to recruit and retain key employees; |
• | Chartwell’s success in negotiating distribution arrangements and maintaining distribution channels for its products; |
• | the failure by a key vendor to fulfill its obligations to TriState Capital; |
• | the effects of problems encountered by other financial institutions that adversely affect TriState Capital or the banking industry generally; |
• | the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks; |
• | possible changes in the speed of loan prepayments by TriState Capital’s customers and loan origination or sales volumes; |
• | regulatory limits on TriState Capital’s ability to receive dividends from its subsidiaries and pay dividends to its preferred shareholders; and |
• | the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above. |
As of and For the Three Months Ended | As of and For the Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Cash and cash equivalents | $ | 458,269 | $ | 243,911 | $ | 164,367 | $ | 458,269 | $ | 164,367 | ||||||
Total investment securities | 431,426 | 487,087 | 288,674 | 431,426 | 288,674 | |||||||||||
Loans and leases held-for-investment | 5,664,934 | 5,336,725 | 4,552,928 | 5,664,934 | 4,552,928 | |||||||||||
Allowance for loan and lease losses | (14,016 | ) | (14,712 | ) | (15,321 | ) | (14,016 | ) | (15,321 | ) | ||||||
Loans and leases held-for-investment, net | 5,650,918 | 5,322,013 | 4,537,607 | 5,650,918 | 4,537,607 | |||||||||||
Goodwill and other intangibles, net | 66,859 | 67,361 | 68,867 | 66,859 | 68,867 | |||||||||||
Other assets | 238,531 | 223,638 | 174,421 | 238,531 | 174,421 | |||||||||||
Total assets | $ | 6,846,003 | $ | 6,344,010 | $ | 5,233,936 | $ | 6,846,003 | $ | 5,233,936 | ||||||
Deposits | $ | 5,786,983 | $ | 5,337,704 | $ | 4,441,202 | $ | 5,786,983 | $ | 4,441,202 | ||||||
Borrowings, net | 335,000 | 398,216 | 264,814 | 335,000 | 264,814 | |||||||||||
Other liabilities | 135,039 | 111,533 | 74,026 | 135,039 | 74,026 | |||||||||||
Total liabilities | 6,257,022 | 5,847,453 | 4,780,042 | 6,257,022 | 4,780,042 | |||||||||||
Preferred stock | 116,142 | 38,468 | 38,432 | 116,142 | 38,432 | |||||||||||
Common shareholders’ equity | 472,839 | 458,089 | 415,462 | 472,839 | 415,462 | |||||||||||
Total shareholders’ equity | 588,981 | 496,557 | 453,894 | 588,981 | 453,894 | |||||||||||
Total liabilities and shareholders’ equity | $ | 6,846,003 | $ | 6,344,010 | $ | 5,233,936 | $ | 6,846,003 | $ | 5,233,936 |
As of and For the Three Months Ended | As of and For the Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Interest income: | ||||||||||||||||
Loans and leases | $ | 60,579 | $ | 57,262 | $ | 44,614 | $ | 117,841 | $ | 83,641 | ||||||
Investments | 4,151 | 4,353 | 2,300 | 8,504 | 4,084 | |||||||||||
Interest-earning deposits | 1,609 | 1,287 | 870 | 2,896 | 1,475 | |||||||||||
Total interest income | 66,339 | 62,902 | 47,784 | 129,241 | 89,200 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits | 32,155 | 29,333 | 16,696 | 61,488 | 30,097 | |||||||||||
Borrowings | 2,881 | 3,197 | 2,297 | 6,078 | 4,050 | |||||||||||
Total interest expense | 35,036 | 32,530 | 18,993 | 67,566 | 34,147 | |||||||||||
Net interest income | 31,303 | 30,372 | 28,791 | 61,675 | 55,053 | |||||||||||
Provision (credit) for loan and lease losses | (712 | ) | (377 | ) | 415 | (1,089 | ) | 610 | ||||||||
Net interest income after provision for loan and lease losses | 32,015 | 30,749 | 28,376 | 62,764 | 54,443 | |||||||||||
Non-interest income: | ||||||||||||||||
Investment management fees | 9,254 | 9,424 | 9,686 | 18,678 | 18,594 | |||||||||||
Service charges on deposits | 78 | 136 | 140 | 214 | 274 | |||||||||||
Net gain on the sale and call of debt securities | 112 | 28 | 1 | 140 | 6 | |||||||||||
Swap fees | 1,692 | 1,803 | 1,937 | 3,495 | 3,185 | |||||||||||
Commitment and other loan fees | 256 | 531 | 331 | 787 | 663 | |||||||||||
Other income | 587 | 1,147 | 407 | 1,734 | 869 | |||||||||||
Total non-interest income | 11,979 | 13,069 | 12,502 | 25,048 | 23,591 | |||||||||||
Non-interest expense: | ||||||||||||||||
Compensation and employee benefits | 16,985 | 16,775 | 15,742 | 33,760 | 31,210 | |||||||||||
Premises and occupancy costs | 1,834 | 1,270 | 1,264 | 3,104 | 2,554 | |||||||||||
Professional fees | 1,406 | 995 | 1,554 | 2,401 | 2,649 | |||||||||||
FDIC insurance expense | 1,047 | 1,421 | 1,134 | 2,468 | 2,280 | |||||||||||
General insurance expense | 259 | 294 | 242 | 553 | 489 | |||||||||||
State capital shares tax | 380 | 380 | 484 | 760 | 911 | |||||||||||
Travel and entertainment expense | 1,040 | 835 | 1,006 | 1,875 | 1,652 | |||||||||||
Intangible amortization expense | 502 | 502 | 502 | 1,004 | 963 | |||||||||||
Other operating expenses | 4,132 | 4,200 | 3,390 | 8,332 | 6,460 | |||||||||||
Total non-interest expense | 27,585 | 26,672 | 25,318 | 54,257 | 49,168 | |||||||||||
Income before tax | 16,409 | 17,146 | 15,560 | 33,555 | 28,866 | |||||||||||
Income tax expense | 1,718 | 2,582 | 968 | 4,300 | 3,873 | |||||||||||
Net income | $ | 14,691 | $ | 14,564 | $ | 14,592 | $ | 29,255 | $ | 24,993 | ||||||
Preferred stock dividends | 1,150 | 679 | 762 | 1,829 | 762 | |||||||||||
Net income available to common shareholders | $ | 13,541 | $ | 13,885 | $ | 13,830 | $ | 27,426 | $ | 24,231 |
As of and For the Three Months Ended | As of and For the Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Per share and share data: | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.50 | $ | 0.50 | $ | 0.98 | $ | 0.88 | ||||||
Diluted | $ | 0.47 | $ | 0.48 | $ | 0.48 | $ | 0.95 | $ | 0.84 | ||||||
Book value per common share | $ | 16.12 | $ | 15.61 | $ | 14.35 | $ | 16.12 | $ | 14.35 | ||||||
Tangible book value per common share (1) | $ | 13.84 | $ | 13.31 | $ | 11.97 | $ | 13.84 | $ | 11.97 | ||||||
Common shares outstanding, at end of period | 29,339,152 | 29,351,833 | 28,947,883 | 29,339,152 | 28,947,883 | |||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 27,887,599 | 27,832,839 | 27,628,120 | 27,860,370 | 27,611,498 | |||||||||||
Diluted | 28,790,673 | 28,703,636 | 28,848,969 | 28,747,718 | 28,786,188 | |||||||||||
Performance ratios: | ||||||||||||||||
Return on average assets (2) | 0.84 | % | 0.92 | % | 1.09 | % | 0.88 | % | 0.99 | % | ||||||
Return on average common equity (2) | 11.63 | % | 12.50 | % | 13.57 | % | 12.06 | % | 12.14 | % | ||||||
Net interest margin (2) (3) | 2.03 | % | 2.10 | % | 2.38 | % | 2.06 | % | 2.36 | % | ||||||
Total revenue (1) | $ | 43,170 | $ | 43,413 | $ | 41,292 | $ | 86,583 | $ | 78,638 | ||||||
Bank efficiency ratio (1) | 55.16 | % | 56.30 | % | 50.49 | % | 55.72 | % | 52.38 | % | ||||||
Non-interest expense to average assets (2) | 1.71 | % | 1.77 | % | 2.00 | % | 1.74 | % | 2.02 | % | ||||||
Asset quality: | ||||||||||||||||
Non-performing loans | $ | 2,189 | $ | 7,329 | $ | 2,437 | $ | 2,189 | $ | 2,437 | ||||||
Non-performing assets | $ | 5,213 | $ | 10,453 | $ | 6,013 | $ | 5,213 | $ | 6,013 | ||||||
Other real estate owned | $ | 3,024 | $ | 3,124 | $ | 3,576 | $ | 3,024 | $ | 3,576 | ||||||
Non-performing assets to total assets | 0.08 | % | 0.16 | % | 0.11 | % | 0.08 | % | 0.11 | % | ||||||
Non-performing loans to total loans | 0.04 | % | 0.14 | % | 0.05 | % | 0.04 | % | 0.05 | % | ||||||
Allowance for loan and lease losses to loans | 0.25 | % | 0.28 | % | 0.34 | % | 0.25 | % | 0.34 | % | ||||||
Allowance for loan and lease losses to non-performing loans | 640.29 | % | 200.74 | % | 628.68 | % | 640.29 | % | 628.68 | % | ||||||
Net recoveries | $ | (16 | ) | $ | (1,881 | ) | $ | (88 | ) | $ | (1,897 | ) | $ | (294 | ) | |
Net recoveries to average total loans (2) | — | % | (0.15 | )% | (0.01 | )% | (0.07 | )% | (0.01 | )% | ||||||
Capital ratios: | ||||||||||||||||
Tier 1 leverage ratio | 8.23 | % | 7.13 | % | 7.68 | % | 8.23 | % | 7.68 | % | ||||||
Common equity tier 1 risk-based capital ratio | 9.82 | % | 9.98 | % | 10.94 | % | 9.82 | % | 10.94 | % | ||||||
Tier 1 risk-based capital ratio | 12.58 | % | 10.92 | % | 12.06 | % | 12.58 | % | 12.06 | % | ||||||
Total risk-based capital ratio | 12.90 | % | 11.26 | % | 12.66 | % | 12.90 | % | 12.66 | % | ||||||
Investment Management Segment: | ||||||||||||||||
Assets under management | $ | 9,485,000 | $ | 9,732,000 | $ | 9,554,000 | $ | 9,485,000 | $ | 9,554,000 | ||||||
EBITDA (1) | $ | 1,557 | $ | 2,621 | $ | 1,627 | $ | 4,178 | $ | 3,143 |
(1) | These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures. |
(2) | Ratios are annualized. |
(3) | Net interest margin is calculated on a fully taxable equivalent basis. |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income (1)/ Expense | Average Yield/ Rate | Average Balance | Interest Income (1)/ Expense | Average Yield/ Rate | Average Balance | Interest Income (1)/ Expense | Average Yield/ Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning deposits | $ | 255,697 | $ | 1,542 | 2.42 | % | $ | 202,474 | $ | 1,256 | 2.52 | % | $ | 186,009 | $ | 842 | 1.82 | % | ||||||||
Federal funds sold | 11,218 | 67 | 2.40 | % | 8,595 | 31 | 1.46 | % | 6,650 | 28 | 1.69 | % | ||||||||||||||
Debt securities available-for-sale | 249,281 | 2,053 | 3.30 | % | 236,235 | 1,986 | 3.41 | % | 181,718 | 1,356 | 2.99 | % | ||||||||||||||
Debt securities held-to-maturity | 181,495 | 1,712 | 3.78 | % | 211,833 | 2,018 | 3.86 | % | 72,166 | 678 | 3.77 | % | ||||||||||||||
Equity securities | 7,701 | 28 | 1.46 | % | 12,755 | 72 | 2.29 | % | 8,620 | 64 | 2.98 | % | ||||||||||||||
FHLB stock | 20,235 | 385 | 7.63 | % | 20,498 | 305 | 6.03 | % | 19,061 | 230 | 4.84 | % | ||||||||||||||
Total loans and leases | 5,462,489 | 60,579 | 4.45 | % | 5,177,844 | 57,262 | 4.49 | % | 4,378,514 | 44,614 | 4.09 | % | ||||||||||||||
Total interest-earning assets | 6,188,116 | 66,366 | 4.30 | % | 5,870,234 | 62,930 | 4.35 | % | 4,852,738 | 47,812 | 3.95 | % | ||||||||||||||
Other assets | 266,905 | 242,553 | 213,320 | |||||||||||||||||||||||
Total assets | $ | 6,455,021 | $ | 6,112,787 | $ | 5,066,058 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 868,721 | $ | 4,965 | 2.29 | % | $ | 792,690 | $ | 4,542 | 2.32 | % | $ | 604,324 | $ | 2,576 | 1.71 | % | ||||||||
Money market deposit accounts | 2,855,795 | 18,200 | 2.56 | % | 2,682,390 | 16,540 | 2.50 | % | 2,319,320 | 9,722 | 1.68 | % | ||||||||||||||
Certificates of deposit | 1,361,372 | 8,990 | 2.65 | % | 1,300,296 | 8,251 | 2.57 | % | 928,210 | 4,398 | 1.90 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
FHLB borrowings | 430,770 | 2,334 | 2.17 | % | 459,333 | 2,585 | 2.28 | % | 418,187 | 1,743 | 1.67 | % | ||||||||||||||
Line of credit borrowings | 857 | 10 | 4.68 | % | 4,139 | 58 | 5.68 | % | — | — | — | % | ||||||||||||||
Subordinated notes payable, net | 34,984 | 537 | 6.16 | % | 34,933 | 554 | 6.43 | % | 34,781 | 554 | 6.39 | % | ||||||||||||||
Total interest-bearing liabilities | 5,552,499 | 35,036 | 2.53 | % | 5,273,781 | 32,530 | 2.50 | % | 4,304,822 | 18,993 | 1.77 | % | ||||||||||||||
Noninterest-bearing deposits | 256,404 | 261,682 | 245,412 | |||||||||||||||||||||||
Other liabilities | 113,031 | 88,485 | 68,491 | |||||||||||||||||||||||
Shareholders’ equity | 533,087 | 488,839 | 447,333 | |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,455,021 | $ | 6,112,787 | $ | 5,066,058 | ||||||||||||||||||||
Net interest income (1) | $ | 31,330 | $ | 30,400 | $ | 28,819 | ||||||||||||||||||||
Net interest spread | 1.77 | % | 1.85 | % | 2.18 | % | ||||||||||||||||||||
Net interest margin (1) | 2.03 | % | 2.10 | % | 2.38 | % |
(1) | Interest income and net interest margin are calculated on a fully taxable equivalent basis. |
Six Months Ended June 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income (1)/ Expense | Average Yield/ Rate | Average Balance | Interest Income (1)/ Expense | Average Yield/ Rate | |||||||||||
Assets | |||||||||||||||||
Interest-earning deposits | $ | 229,232 | $ | 2,798 | 2.46 | % | $ | 168,164 | $ | 1,421 | 1.70 | % | |||||
Federal funds sold | 9,914 | 98 | 1.99 | % | 6,845 | 54 | 1.59 | % | |||||||||
Debt securities available-for-sale | 242,794 | 4,040 | 3.36 | % | 162,129 | 2,314 | 2.88 | % | |||||||||
Debt securities held-to-maturity | 196,580 | 3,730 | 3.83 | % | 65,596 | 1,273 | 3.91 | % | |||||||||
Equity securities | 10,214 | 99 | 1.95 | % | 8,624 | 130 | 3.04 | % | |||||||||
FHLB stock | 20,366 | 690 | 6.83 | % | 16,641 | 424 | 5.14 | % | |||||||||
Total loans and leases | 5,320,953 | 117,841 | 4.47 | % | 4,272,437 | 83,641 | 3.95 | % | |||||||||
Total interest-earning assets | 6,030,053 | 129,296 | 4.32 | % | 4,700,436 | 89,257 | 3.83 | % | |||||||||
Other assets | 254,796 | 211,012 | |||||||||||||||
Total assets | $ | 6,284,849 | $ | 4,911,448 | |||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Interest-bearing checking accounts | $ | 830,915 | $ | 9,508 | 2.31 | % | $ | 534,673 | $ | 4,198 | 1.58 | % | |||||
Money market deposit accounts | 2,769,572 | 34,739 | 2.53 | % | 2,300,567 | 17,834 | 1.56 | % | |||||||||
Certificates of deposit | 1,331,003 | 17,241 | 2.61 | % | 952,813 | 8,065 | 1.71 | % | |||||||||
Borrowings: | |||||||||||||||||
FHLB borrowings | 444,973 | 4,920 | 2.23 | % | 364,392 | 2,890 | 1.60 | % | |||||||||
Line of credit borrowings | 2,489 | 68 | 5.51 | % | 2,672 | 52 | 3.92 | % | |||||||||
Subordinated notes payable, net | 34,958 | 1,090 | 6.29 | % | 34,756 | 1,108 | 6.43 | % | |||||||||
Total interest-bearing liabilities | 5,413,910 | 67,566 | 2.52 | % | 4,189,873 | 34,147 | 1.64 | % | |||||||||
Noninterest-bearing deposits | 259,028 | 236,882 | |||||||||||||||
Other liabilities | 100,826 | 62,605 | |||||||||||||||
Shareholders’ equity | 511,085 | 422,088 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,284,849 | $ | 4,911,448 | |||||||||||||
Net interest income (1) | $ | 61,730 | $ | 55,110 | |||||||||||||
Net interest spread | 1.80 | % | 2.19 | % | |||||||||||||
Net interest margin (1) | 2.06 | % | 2.36 | % |
(1) | Interest income and net interest margin are calculated on a fully taxable equivalent basis. |
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||||||||
(Dollars in thousands) | Loan Balance | Percent of Total Loans | Loan Balance | Percent of Total Loans | Loan Balance | Percent of Total Loans | |||||||||||
Private banking loans | $ | 3,188,668 | 56.3 | % | $ | 2,981,973 | 55.9 | % | $ | 2,488,162 | 54.6 | % | |||||
Middle-market banking loans: | |||||||||||||||||
Commercial and industrial | 908,054 | 16.0 | % | 862,405 | 16.1 | % | 741,901 | 16.3 | % | ||||||||
Commercial real estate | 1,568,212 | 27.7 | % | 1,492,347 | 28.0 | % | 1,322,865 | 29.1 | % | ||||||||
Total middle-market banking loans | 2,476,266 | 43.7 | % | 2,354,752 | 44.1 | % | 2,064,766 | 45.4 | % | ||||||||
Loans and leases held-for-investment | $ | 5,664,934 | 100.0 | % | $ | 5,336,725 | 100.0 | % | $ | 4,552,928 | 100.0 | % |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Bank | Investment Management | Parent and Other | Consolidated | Bank | Investment Management | Parent and Other | Consolidated | |||||||||||||||||
Income statement data: | |||||||||||||||||||||||||
Interest income | $ | 66,311 | $ | — | $ | 28 | $ | 66,339 | $ | 47,720 | $ | — | $ | 64 | $ | 47,784 | |||||||||
Interest expense | 34,517 | — | 519 | 35,036 | 18,440 | — | 553 | 18,993 | |||||||||||||||||
Net interest income (loss) | 31,794 | — | (491 | ) | 31,303 | 29,280 | — | (489 | ) | 28,791 | |||||||||||||||
Provision (credit) for loan and lease losses | (712 | ) | — | — | (712 | ) | 415 | — | — | 415 | |||||||||||||||
Net interest income (loss) after provision for loan and lease losses | 32,506 | — | (491 | ) | 32,015 | 28,865 | — | (489 | ) | 28,376 | |||||||||||||||
Non-interest income: | |||||||||||||||||||||||||
Investment management fees | — | 9,364 | (110 | ) | 9,254 | — | 9,743 | (57 | ) | 9,686 | |||||||||||||||
Net gain on the sale and call of debt securities | 112 | — | — | 112 | 1 | — | — | 1 | |||||||||||||||||
Other non-interest income | 2,478 | 4 | 131 | 2,613 | 2,849 | 1 | (35 | ) | 2,815 | ||||||||||||||||
Total non-interest income | 2,590 | 9,368 | 21 | 11,979 | 2,850 | 9,744 | (92 | ) | 12,502 | ||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||
Intangible amortization expense | — | 502 | — | 502 | — | 502 | — | 502 | |||||||||||||||||
Other non-interest expense | 18,903 | 7,930 | 250 | 27,083 | 16,223 | 8,242 | 351 | 24,816 | |||||||||||||||||
Total non-interest expense | 18,903 | 8,432 | 250 | 27,585 | 16,223 | 8,744 | 351 | 25,318 | |||||||||||||||||
Income (loss) before tax | 16,193 | 936 | (720 | ) | 16,409 | 15,492 | 1,000 | (932 | ) | 15,560 | |||||||||||||||
Income tax expense (benefit) | 1,658 | 264 | (204 | ) | 1,718 | 955 | 277 | (264 | ) | 968 | |||||||||||||||
Net income (loss) | $ | 14,535 | $ | 672 | $ | (516 | ) | $ | 14,691 | $ | 14,537 | $ | 723 | $ | (668 | ) | $ | 14,592 |
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||||||||||||||
(Dollars in thousands) | Bank | Investment Management | Parent and Other | Consolidated | Bank | Investment Management | Parent and Other | Consolidated | |||||||||||||||||
Income statement data: | |||||||||||||||||||||||||
Interest income | $ | 129,142 | $ | — | $ | 99 | $ | 129,241 | $ | 89,071 | $ | — | $ | 129 | $ | 89,200 | |||||||||
Interest expense | 66,436 | — | 1,130 | 67,566 | 32,990 | — | 1,157 | 34,147 | |||||||||||||||||
Net interest income (loss) | 62,706 | — | (1,031 | ) | 61,675 | 56,081 | — | (1,028 | ) | 55,053 | |||||||||||||||
Provision (credit) for loan and lease losses | (1,089 | ) | — | — | (1,089 | ) | 610 | — | — | 610 | |||||||||||||||
Net interest income (loss) after provision for loan and lease losses | 63,795 | — | (1,031 | ) | 62,764 | 55,471 | — | (1,028 | ) | 54,443 | |||||||||||||||
Non-interest income: | |||||||||||||||||||||||||
Investment management fees | — | 18,896 | (218 | ) | 18,678 | — | 18,707 | (113 | ) | 18,594 | |||||||||||||||
Net gain on the sale and call of debt securities | 140 | — | — | 140 | 6 | — | — | 6 | |||||||||||||||||
Other non-interest income | 5,355 | 25 | 850 | 6,230 | 5,026 | 1 | (36 | ) | 4,991 | ||||||||||||||||
Total non-interest income | 5,495 | 18,921 | 632 | 25,048 | 5,032 | 18,708 | (149 | ) | 23,591 | ||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||
Intangible amortization expense | — | 1,004 | — | 1,004 | — | 963 | — | 963 | |||||||||||||||||
Other non-interest expense | 37,923 | 14,987 | 343 | 53,253 | 32,010 | 15,815 | 380 | 48,205 | |||||||||||||||||
Total non-interest expense | 37,923 | 15,991 | 343 | 54,257 | 32,010 | 16,778 | 380 | 49,168 | |||||||||||||||||
Income (loss) before tax | 31,367 | 2,930 | (742 | ) | 33,555 | 28,493 | 1,930 | (1,557 | ) | 28,866 | |||||||||||||||
Income tax expense (benefit) | 3,683 | 827 | (210 | ) | 4,300 | 3,809 | 504 | (440 | ) | 3,873 | |||||||||||||||
Net income (loss) | $ | 27,684 | $ | 2,103 | $ | (532 | ) | $ | 29,255 | $ | 24,684 | $ | 1,426 | $ | (1,117 | ) | $ | 24,993 |
June 30, | March 31, | June 30, | |||||||
(Dollars in thousands, except per share data) | 2019 | 2019 | 2018 | ||||||
Tangible book value per common share: | |||||||||
Common shareholders’ equity | $ | 472,839 | $ | 458,089 | $ | 415,462 | |||
Less: goodwill and intangible assets | 66,859 | 67,361 | 68,867 | ||||||
Tangible common equity | $ | 405,980 | $ | 390,728 | $ | 346,595 | |||
Common shares outstanding | 29,339,152 | 29,351,833 | 28,947,883 | ||||||
Tangible book value per common share | $ | 13.84 | $ | 13.31 | $ | 11.97 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Investment Management EBITDA: | ||||||||||||||||
Net income | $ | 672 | $ | 1,431 | $ | 723 | $ | 2,103 | $ | 1,426 | ||||||
Interest expense | — | — | — | — | — | |||||||||||
Income taxes expense | 264 | 563 | 277 | 827 | 504 | |||||||||||
Depreciation expense | 119 | 125 | 125 | 244 | 250 | |||||||||||
Intangible amortization expense | 502 | 502 | 502 | 1,004 | 963 | |||||||||||
EBITDA | $ | 1,557 | $ | 2,621 | $ | 1,627 | $ | 4,178 | $ | 3,143 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Total revenue: | ||||||||||||||||
Net interest income | $ | 31,303 | $ | 30,372 | $ | 28,791 | $ | 61,675 | $ | 55,053 | ||||||
Total non-interest income | 11,979 | 13,069 | 12,502 | 25,048 | 23,591 | |||||||||||
Less: net gain on the sale and call of debt securities | 112 | 28 | 1 | 140 | 6 | |||||||||||
Total revenue | $ | 43,170 | $ | 43,413 | $ | 41,292 | $ | 86,583 | $ | 78,638 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
(Dollars in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Bank total revenue: | ||||||||||||||||
Net interest income | $ | 31,794 | $ | 30,911 | $ | 29,280 | $ | 62,706 | $ | 56,081 | ||||||
Total non-interest income | 2,590 | 2,905 | 2,850 | 5,495 | 5,032 | |||||||||||
Less: net gain on the sale and call of debt securities | 112 | 28 | 1 | 140 | 6 | |||||||||||
Bank total revenue | $ | 34,272 | $ | 33,788 | $ | 32,129 | $ | 68,061 | $ | 61,107 | ||||||
Bank efficiency ratio: | ||||||||||||||||
Total non-interest expense (numerator) | $ | 18,903 | $ | 19,021 | $ | 16,223 | $ | 37,923 | $ | 32,010 | ||||||
Bank total revenue (denominator) | $ | 34,272 | $ | 33,788 | $ | 32,129 | $ | 68,061 | $ | 61,107 | ||||||
Bank efficiency ratio | 55.16 | % | 56.30 | % | 50.49 | % | 55.72 | % | 52.38 | % |