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Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Interest and dividend income:        
Loans $ 49,731 $ 46,663 $ 99,777 $ 94,663
Taxable investment securities 1,507 1,075 3,101 2,070
Non-taxable investment securities 1,400 1,125 2,790 2,146
Mortgage-backed securities 2,982 2,775 6,047 5,389
Federal funds sold and other 405 282 912 516
Total interest and dividend income 56,025 51,920 112,627 104,784
Interest expense:        
Deposits 4,075 3,822 8,257 7,714
Federal Home Loan Bank borrowings 2,139 2,017 4,092 3,948
Junior subordinated debentures 584 967 1,162 1,923
Repurchase agreements and other short-term borrowings 58 29 68 42
Total interest expense 6,856 6,835 13,579 13,627
Net interest income 49,169 45,085 99,048 91,157
Provision/ (credit) for loan losses (2,535) 0 (5,668) (2,500)
Net interest income after provision/ (credit) for loan losses 51,704 45,085 104,716 93,657
Fees and other income:        
Investment management fees 10,627 11,731 21,285 23,445
Wealth advisory fees 12,551 12,678 25,263 25,353
Wealth management and trust fees 11,208 13,545 22,124 27,103
Other banking fee income 2,982 2,031 6,215 3,941
Gain on sale of loans, net 197 362 406 665
Gain on sale of investments, net 245 8 246 16
Gain/ (loss) on OREO, net 0 0 280 89
Other (1,015) 2,305 (1,002) 3,393
Total fees and other income 36,795 42,660 74,817 84,005
Operating expense:        
Salaries and employee benefits 40,614 39,816 83,174 81,943
Occupancy and equipment 9,928 9,095 19,515 18,130
Professional services 3,015 3,214 6,530 6,235
Marketing and business development 1,811 1,706 3,981 3,054
Contract services and data processing 1,737 1,495 3,416 2,932
Amortization of intangibles 1,586 1,655 3,172 3,257
FDIC insurance 1,015 963 2,035 1,974
Restructuring 905 220 2,017 220
Other 4,120 4,254 7,600 8,100
Total operating expense 64,731 62,418 131,440 125,845
Income before income taxes 23,768 25,327 48,093 51,817
Income tax expense 7,626 8,000 15,064 16,572
Net income from continuing operations 16,142 17,327 33,029 35,245
Net income from discontinued operations 1,245 1,546 3,310 3,640
Net income before attrubution to noncontrolling interests 17,387 18,873 36,339 38,885
Less: Net income attributable to noncontrolling interests 989 1,263 1,900 2,492
Net income attributable to the Company 16,398 17,610 34,439 36,393
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders [1] (970) (1,026) (1,259) (1,989)
Net income attributable to common shareholders for earnings per share calculation [1] $ 15,428 $ 16,584 $ 33,180 $ 34,404
Basic earnings per share attributable to common shareholders:        
From continuing operations: $ 0.17 $ 0.19 $ 0.37 $ 0.38
From discontinued operations: 0.02 0.02 0.04 0.05
Total attributable to common shareholders: 0.19 0.21 0.41 0.43
Diluted earnings per share attributable to common shareholders:        
From continuing operations: 0.17 0.18 0.36 0.37
From discontinued operations: 0.01 0.02 0.04 0.04
Total attributable to common shareholders: $ 0.18 $ 0.20 $ 0.40 $ 0.41
Common Stock [Member]        
Basic earnings per share attributable to common shareholders:        
Weighted average basic common shares outstanding 81,236,809 80,778,562 81,269,154 80,647,191
Diluted earnings per share attributable to common shareholders:        
Weighted average diluted common shares outstanding [1],[2] 83,519,939 83,260,383 83,391,057 83,111,228
Wealth Management and Trust Segment [Member]        
Fees and other income:        
Total fees and other income $ 11,300 $ 14,647 $ 22,356 $ 28,604
Operating expense:        
Amortization of intangibles 745 624 1,490 1,195
Total operating expense [3] 13,738 12,777 29,590 25,108
Income before income taxes (2,438) 1,870 (7,234) 3,496
Income tax expense (970) 806 (2,909) 1,500
Net income from continuing operations (1,468) 1,064 (4,325) 1,996
Net income attributable to the Company $ (1,468) $ 1,064 $ (4,325) $ 1,996
[1] The Company presents its EPS based on the treasury stock method. The Company reverted to the treasury stock presentation from the two-class presentation due to the immaterial number of participating shares outstanding as of March 31, 2016. If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the three and six months ended June 30, 2016. Net income attributable to common shareholders would have been reduced by an additional $4 thousand, for the six months ended June 30, 2016, and the allocation of net income to participating securities would have been $1 thousand and $6 thousand, for the three and six months ended June 30, 2016, respectively, reducing net income attributable to common shareholders by a total of $1 thousand and $10 thousand, for the three and six months ended June 30, 2016, respectively. Basic EPS would not change. Weighted average diluted shared outstanding would have been reduced by 3,847 shares and 19,522 shares for the three and six months ended June 30, 2016, respectively. Diluted EPS would not change.If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the three and six months ended June 30, 2015. Net income attributable to common shareholders would have been reduced by an additional $38 thousand and $80 thousand, for the three and six months ended June 30, 2015, respectively, and the allocation of net income to participating securities would have been $33 thousand and $92 thousand, for the three and six months ended June 30, 2015, respectively, reducing net income attributable to common shareholders by a total of $71 thousand and $172 thousand, for the three and six months ended June 30, 2015, respectively. Basic EPS would decrease by $0.01 per share for both the three and six months ended June 30, 2015. Weighted average diluted shared outstanding would have been reduced by 221,902 shares and 282,399 shares, for the three and six months ended June 30, 2015, respectively. Diluted EPS would not change.
[2] The diluted EPS computations for the three and six months ended June 30, 2016 and 2015 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):(In thousands)Potential common shares from: Stock options, restricted stock, or other dilutive securities315 538 243 585Total shares excluded due to exercise price exceeding the average market price of common shares during the period315 538 243 585
[3] Operating expense includes $0.9 million and $2.0 million of restructuring expense for the three and six months ended June 30, 2016, respectively, related to the Wealth Management and Trust segment. Operating expense includes $0.2 million of restructuring expenses for both the three and six months ended June 30, 2015 related to the Wealth Management and Trust segment.