Park Sterling Corporation Announces Results for First Quarter 2016
/EINPresswire.com/ -- CHARLOTTE, NC--(Marketwired - April 28, 2016) - Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank, today released unaudited results of operations and other financial information for the first quarter of 2016. Highlights at and for the three months ended March 31, 2016 include:
Three Month Highlights
- Net income of $2.7 million, or $0.05 per share, compared to $3.8 million, or $0.09 per share, in the quarter ended December 31, 2015
- Adjusted net income, which excludes merger-related expenses and gain or loss on sale of securities, increased $1.4 million (29%) to a record $6.2 million, or $0.12 per share, compared to $4.8 million, or $0.11 per share, in the prior quarter
- Adjusted operating expenses to adjusted operating revenues fell to 65.44% in the quarter from 67.84% in the fourth quarter of 2015 due to the impact of First Capital and continued disciplined expense management
- Loan growth, after the addition of First Capital and excluding loans held for sale, of $37.1 million, or 7% annualized growth rate
- Nonperforming loans to total loans decreased 5 basis points to 0.42% from 0.47% at December 31, 2015
- Nonperforming assets to total assets decreased 10 basis points to 0.44% from 0.54% at December 31, 2015
- Tier 1 leverage ratio remained strong at 9.76% compared to 11.00% at December 31, 2015
- Completed merger with First Capital Bancorp, Inc.
- Declared quarterly cash dividend on common shares of $0.03 per share (April 2016)
"We are delighted to report strong operating results for the first quarter of 2016," said James C. Cherry, Chief Executive Officer. "For the quarter, we achieved higher profitability driven by steady loan growth, stable core margins, and increasing operating efficiency. Our financial condition continues to be solid as asset quality remains superior and both capital and liquidity levels continue to be strong. For the three months ended March 31, 2016, we reported record adjusted net income of $6.2 million, or $0.12 per share, an increase of $1.4 million compared to adjusted net income of $4.8 million, or $0.11 per share, reported in the prior quarter. The adjusted return on average assets was 0.79%, an increase from 0.66% in the first quarter of 2015 and 0.77% in the fourth quarter of 2015. The ratio of adjusted operating expense, which excludes merger-related expenses and amortization of intangibles, to adjusted operating revenue, which excludes gains or losses on sale of securities, improved 240 basis points to 65.44% for the first quarter, compared to the prior quarter. The company posted 7% annualized organic loan growth, led by continued strong performance in our metropolitan markets. Asset quality remained strong, as nonperforming loans to total loans were 0.42% and nonperforming assets to total assets were 0.44% at March 31, 2016. Finally, capitalization also remained strong with total common equity to total assets at 11.08%, tangible common equity to tangible assets at 8.87% and Tier 1 leverage ratio at 9.76%.
We were very excited to complete our merger with First Capital Bancorp, Inc. on January 1, 2016, which included re-branding each of the eight new branches. Park Sterling is now even better positioned to compete in the attractive Richmond market given our strong local leadership team, experienced bankers, distinctive product capabilities, strong balance sheet and attractive branch network. The combined company today has approximately $3.2 billion in total assets and 57 banking offices across Virginia, the Carolinas and North Georgia, and benefits from having almost 88% of total deposits based in markets with projected population growth rates above the national average as reported by SNL.
On the capital management front, yesterday the board declared a quarterly dividend of $0.03 per common share, payable on May 24, 2016 to all shareholders of record as of the close of business on May 10, 2016. Future dividends will be subject to board approval. Additionally, during the first quarter we repurchased approximately 98,000 shares under our previously announced 2.2 million share repurchase program.
Overall, we are pleased to report these strong results as Park Sterling continues the commitment to build a full-service regional community bank."
Financial Results
Income Statement - Three Months Ended March 31, 2016
Park Sterling reported net income of $2.7 million, or $0.05 per share, for the three months ended March 31, 2016 ("2016Q1"). This compares to net income of $3.8 million, or $0.09 per share, for the three months ended December 31, 2015 ("2015Q4") and net income of $3.8 million, or $0.09 per share, for the three months ended March 31, 2015 ("2015Q1"). The decrease in net income from 2015Q4 and 2015Q1 resulted primarily from $5.2 million in merger-related costs, included in which is $3.9 million of termination costs of First Capital's core processing contract. This increase in expenses was partially offset by an increase in net interest income and noninterest income associated with the merger of First Capital.
Park Sterling reported adjusted net income, which excludes merger-related expenses and gain or loss on sale of securities, of $6.2 million, or $0.12 per share, in 2016Q1. This compares to adjusted net income of $4.8 million, or $0.11 per share, in 2015Q4 and adjusted net income of $3.9 million, or $0.09 per share, in 2015Q1. Compared to 2015Q4 and 2015Q1, adjusted net income reflects higher net interest income and higher noninterest income partially offset by higher noninterest expense, much of which is associated with the merger with First Capital and organic loan growth.
Net interest income totaled $26.6 million in 2016Q1, which represents a $6.6 million or 33%, increase from $20.0 million in 2015Q4 and a $6.2 million, or 30%, increase from $20.4 million in 2015Q1. Average total earning assets increased $581.3 million, or 26%, in 2016Q1 to $2.83 billion, compared to $2.25 billion in 2015Q4 and increased $677.7 million, or 31%, compared to $2.16 billion in 2015Q1. The increase in average total earning assets in 2016Q1 from 2015Q4 included an increase in average loans (including loans held for sale) of $568.9 million, or 33%, and an increase in average other earning assets of $11.1 million, or 25%, each as a result of the acquisition of First Capital. The increase in average total earning assets in 2016Q1 from 2015Q1 resulted primarily from a $672.3 million, or 42%, increase in average loans (including loans held for sale) as a result of organic growth and the acquisition of First Capital and a $10.6 million, or 2%, increase in average marketable securities, offset by a $5.3 million, or 9%, decrease in average other earning assets.
Net interest margin was 3.78% in 2016Q1, representing a 26 basis point increase from 3.52% in 2015Q4 and a 6 basis point decrease from 3.84% in 2015Q1. The increase in net interest margin from 2015Q4 resulted primarily from a 32 basis point increase in yield on loans to 4.80%, driven by the recognition of the acquired performing fair value mark related to the acquisition of First Capital loans, strong fee income and the addition of higher yielding loans from First Capital. Offsetting the increase in yield on average earning assets, the cost of interest-bearing liabilities increased 12 basis points to 0.63%, driven by a full quarter of interest related to the $30.0 million senior unsecured term loan incurred in December 2015 and an increase in the cost of wholesale funding following the Federal Reserves' action to raise short-term interest rates. The reduction in net interest margin from 2015Q1 resulted primarily from a 4 basis point decrease in yield on loans, due primarily to lower interest rates on new loans partially offset by the recognition of the acquired performing fair value mark related to First Capital and a 22 basis point increase in the cost of interest-bearing liabilities.
The company reported $556,000 of provision expense in 2016Q1 to support organic loan growth, compared to $409,000 of provision recorded in 2015Q4, and a provision of $180,000 in 2015Q1. Allowance for loan loss levels decreased to 0.43% of total loans at 2016Q1 compared to 0.52% at 2015Q4 due to the addition of First Capital loans for which no allowance was booked in accordance with purchase accounting standards.
Noninterest income increased $204,000, or 5%, to $4.7 million in 2016Q1, compared to $4.5 million in 2015Q4 and increased $226,000, or 5%, compared to $4.5 million in 2015Q1. The increase from 2015Q4 was driven primarily by a $617,000, or 166%, increase in BOLI income due in part to death benefits received in 2016Q1 ($402,000 in 2016Q1, $0 in 2015Q4 and $272,000 in 2015Q1). Other increases include a $50,000, or 3%, increase in service charges on deposit accounts and a $76,000, or 11%, increase in mortgage banking income. Partially offsetting these increases was (i) an $84,000, or 9%, decrease in income from wealth management activities due to a decrease in assets under management for the period; (ii) a $369,000, or 84%, decrease in income from capital market activities due to fewer transactions and a higher credit valuation adjustment and (iii) a $74,000, or 11%, decrease in ATM and card income as transactions shift from non-PIN to PIN-based when comparing 2016Q1 and 2015Q4. The increase in noninterest income from 2015Q1 reflects higher BOLI death benefits as noted above, as well as higher service charges on deposit accounts and lower amortization on the FDIC loss share indemnification asset and true-up liability expense, offset partially by lower income from capital market activities and wealth management activities and lower mortgage banking income.
Noninterest expenses increased $7.8 million, or 42%, to $26.2 million in 2016Q1 compared to $18.4 million in 2015Q4, and increased $7.0 million, or 37%, compared to $19.1 million in 2015Q1. Adjusted noninterest expenses, which exclude merger-related expenses ($5.2 million in 2016Q1, $1.4 million in 2015Q4 and $122,000 in 2015Q1), increased $4.0 million, or 24%, to $21.0 million in 2016Q1 compared to $17.0 million in 2015Q4, and increased $1.9 million, or 10%, compared to $19.0 million in 2015Q1. Overall the increase in adjusted noninterest expenses from 2015Q4 was due primarily to a $2.7 million increase in salaries and compensation expense due to the addition of First Capital employees, as well as an increase in the incentive accrual in 2016Q1 as compared to 2015Q4, as the prior quarter included a year-end incentive accrual reduction. Other increases from 2015Q4 include occupancy and equipment expense, data processing expense, legal and professional fees, deposit charges and FDIC insurance expense, postage and supplies, advertising and promotion and core deposit intangibles, all of which were due primarily to the merger with First Capital. The net cost of operation of OREO also increased compared to 2015Q4, as 2016Q1 included a loss on the sale of a branch that had been transferred to OREO in 2015. The above increases were partially offset by a $157,000 decrease in loan and collection expenses and a $52,000 decrease in the loss on disposal of assets, as 2015Q4 included branch closure costs.
The company's effective tax rate increased to 40.6% in 2016Q1, due in part to certain non-deductible merger-related expenses and adjustments made to deferred tax assets for the true-up in tax rates and re-measurement due to the First Capital merger, compared to 34.1% in 2015Q4 and 32.5% in 2015Q1.
Balance Sheet
Total assets increased $639.5 million, or 25%, to $3.2 billion at 2016Q1 compared to total assets of $2.5 billion at 2015Q4 primarily as a result of the merger with First Capital. Cash and equivalents increased $10.9 million, or 15%, to $81.2 million and total securities, including non-marketable securities, increased $11.7 million, to $514.4 million. Total loans, excluding loans held for sale, increased $537.3 million, or 31% annualized, to $2.3 billion at 2016Q1 from 2015Q4. The company's metropolitan markets, which include Charlotte, Raleigh and Wilmington, North Carolina, Greenville and Charleston, South Carolina and Richmond, Virginia, reported a $550.3 million, or 57%, increase in total loans to $1.5 billion, due to the addition of First Capital which added $500 million in loans in the Richmond market, as well as continued success in origination efforts. The community markets reported a $13.5 million, or 4%, decrease in total loans to $349.0 million, primarily due to more limited attractive lending opportunities. The company's central business units, which primarily include mortgage, builder finance, private banking and special assets remained flat as growth in mortgage, private banking and builder finance offset reductions in special asset loans, including covered loans.
The merger with First Capital led to a shift in loan mix at 2016Q1 compared to 2015Q4. The combination of commercial and industrial and owner-occupied real estate loans decreased from 33.2% to 31.1% of total loans and investor-owned commercial real estate loans increased from 29.1% to 31.7% of total loans. Acquisition, construction and development loans increased to 14.2% from 9.4% of total loans. Total consumer loans decreased to 22.5% from 27.7% of total loans, with home equity lines of credit decreasing to 7.8% from 9.0% of total loans, residential mortgages decreasing from 12.9% to 10.3% of total loans and other consumer (including residential construction) decreasing from 5.8% to 4.3% of total loans.
In terms of accounting designations, compared to 2015Q4: (i) non-acquired loans, which include certain renewed and/or restructured acquired performing loans that are re-designated as non-acquired, increased $80.1 million, or 6%, to $1.5 billion; (ii) acquired performing loans increased $446.1 million, or 159%, to $726.0 million; and (iii) purchase credit impaired ("PCI") loans increased $11.2 million, or 12%, to $106.1 million. At 2016Q1, noncovered performing acquired loans (which totaled $724.7 million) included a $6.0 million net acquisition accounting fair market value adjustment, representing a 0.82% "mark;" noncovered PCI loans (which totaled $91.2 million) included a $23.8 million adjustment, representing a 20.7% "mark;" and covered performing acquired and PCI loans (which totaled $16.3 million) included a $3.7 million adjustment, representing an 18.7% "mark."
Total deposits increased $545.3 million, or 28%, to $2.5 billion at 2016Q1, compared to $2.0 billion at 2015Q4 due primarily to the merger with First Capital. Noninterest bearing demand deposits increased $118.2 million, or 34%, to $469.0 million (19% of total deposits). Non-brokered money market, NOW and savings deposits increased $194.9 million, or 20%, to $1.2 billion (48% of total deposits). Time deposits less than $250,000 increased $151.3 million, or 37%, to $556.7 million (22% of total deposits) and time deposits greater than $250,000 increased $48.9 million, or 69%, to $119.9 million (5% of total deposits). Finally, brokered deposits increased $32.1 million, or 25%, to $160.5 million (6% of total deposits). Core deposits, which exclude time deposits greater than $250,000 and brokered deposits, represented 88.8% of total deposits at 2016Q1 and 89.8% of total deposits at 2015Q4.
Total borrowings increased $28.8 million, or 12%, to $268.0 million at 2016Q1 compared to $239.3 million at 2015Q4. Borrowings at 2016Q1 included $205.0 million in FHLB borrowings, $30.0 million in a senior unsecured term loan at the bank holding company level, and $33.0 million of acquired trust preferred securities, net of acquisition accounting fair market value adjustments.
Total shareholders' equity increased $64.8 million, or 23%, to $349.5 million at 2016Q1 compared to $284.7 million at 2015Q4. This increase primarily resulted from the issuance of 8,376,094 shares of common stock, valued at $61.3 million (based on the $7.32 per share closing price on the last trading day prior to consummation), as the stock component of the merger with First Capital. The company's ratio of tangible common equity to tangible assets decreased to 8.87% at 2016Q1 from 9.93% at 2015Q4. The company's Common Equity Tier 1 ("CET1") ratio decreased to 10.85% at 2016Q1 compared to 12.98% at 2015Q4 due to an increase in risk weighted assets. The company's Tier 1 leverage ratio was 9.76% at 2016Q1 compared to 11.00% at 2015Q4.
Asset Quality
Asset quality remains a point of strength for the company. Nonperforming assets were $14.0 million at 2016Q1, or 0.44% of total assets, compared to $13.7 million at 2015Q4, or 0.54% of total assets, an increase of $292,000, or 2%. Nonperforming loans were $9.6 million at 2016Q1, and represented 0.42% of total loans, compared to $8.3 million at 2015Q4, or 0.47% of total loans, an increase of $1.3 million, or 16%. The increase in nonperforming loans was due primarily to two relationships. One of the relationships totaling $1.5 million became past due during the quarter; however a sales contract for the underlying collateral is in place and full resolution is anticipated in the near future. The company reported net recoveries of $212,000, or 0.04% of average loans (annualized), in 2016Q1, compared to net charge-offs of $87,000, or 0.02% of average loans (annualized), in 2016Q1.
The allowance for loan losses increased $768,000, or 8%, to $9.8 million, or 0.43% of total loans, at 2016Q1, compared to $9.1 million, or 0.52% of total loans, at 2015Q4. The increase in allowance included (i) a $762,000, or 33%, decrease in the quantitative component, resulting from lower historic loss rates due to a net recovery in 2016Q1 and (ii) a $1.5 million, or 23%, increase in the qualitative component, reflecting management's judgment of inherent loss in the loan portfolio not represented in historic loss rates.
During the first quarter of 2011, and as contemplated in Park Sterling Bank's 2010 public offering, 568,260 shares of restricted stock were issued but will not vest until the company's share price achieves certain performance thresholds above the equity offering price (these restricted shares vest one-third each when the share price reaches, for 30 consecutive days, $8.125, $9.10 and $10.40 per share, respectively). The performance thresholds of the remaining restricted shares have not yet been achieved (436,590 of these restricted shares remained outstanding at 2016Q1). Accordingly, these additional shares have been excluded from earnings and tangible book value per share calculations. As of March 31, 2016, 131,670 of these shares have either been forfeited or vested in accordance with agreements between the Company and its executive officers.
Conference Call
A conference call will be held at 8:30 a.m., Eastern Time this morning (April 28, 2016). The conference call can be accessed by dialing (877) 512-1104 and requesting the Park Sterling Corporation earnings call. Listeners should dial in 10 minutes prior to the start of the call. The live webcast and presentation slides will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations."
A replay of the webcast will be available on www.parksterlingbank.com under Investor Relations, "Investor Presentations" shortly following the call. A replay of the conference call can be accessed approximately one hour after the call by dialing (877) 344-7529 and requesting conference number 10083664.
About Park Sterling Corporation
Park Sterling Corporation, the holding company for Park Sterling Bank, is headquartered in Charlotte, North Carolina. Park Sterling, a regional community-focused financial services company with $3.2 billion in assets, is the largest community bank headquartered in the Charlotte area and has 57 banking offices stretching across the Carolinas and into North Georgia, as well as in Richmond, Virginia. The bank serves professionals, individuals, and small and mid-sized businesses by offering a full array of financial services, including deposit, mortgage banking, cash management, consumer and business finance, capital markets and wealth management services with a commitment to "Answers You Can Bank On℠." Park Sterling prides itself on being large enough to help customers achieve their financial aspirations, yet small enough to care that they do. Park Sterling is focused on building a banking franchise that is noted for sound risk management, strong community focus and exceptional customer service. For more information, visit www.parksterlingbank.com. Park Sterling Corporation shares are traded on NASDAQ under the symbol PSTB.
Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, adjusted net income, adjusted net interest margin, adjusted operating revenues, adjusted noninterest income, adjusted noninterest expenses, adjusted operating expense, adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. For additional information, see "Reconciliation of Non-GAAP Financial Measures" in the accompanying tables.
Cautionary Statement Regarding Forward Looking Statements
This news release contains, and Park Sterling and its management may make, certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often use words such as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," expect," "project," "predict," "estimate," "could," "should," "would," "will," "goal," "target" and similar expressions. These forward-looking statements express management's current expectations or forecasts of future events, results and conditions and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: synergies and other financial benefits from the merger with First Capital Bancorp, Inc. ("First Capital") may not be realized within the expected time frames; costs or difficulties related to integration matters might be greater than expected; changes in loan mix, deposit mix, capital and liquidity levels, emerging regulatory expectations and measures, net interest income, noninterest income, noninterest expense, credit trends and conditions, including loan losses, allowance for loan loss, charge-offs, delinquency trends and nonperforming asset levels, deterioration in the credit quality of the loan portfolio or the value of collateral securing loans, deterioration in the value of securities held for investment, the impacts of a potential increasing rate environment, and other similar matters; inability to identify and successfully negotiate and complete additional combinations with other potential merger partners or to successfully integrate such businesses into Park Sterling, including the company's ability to adequately estimate or to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combinations; failure to generate an adequate return on investment related to new branches or other hiring initiatives; inability to generate future organic growth in loan balances, retail banking, wealth management, mortgage banking or capital markets results through the hiring of new personnel, development of new products, including new online and mobile banking platforms for treasury services, opening of de novo branches or otherwise; inability to capitalize on identified revenue enhancements or expense management opportunities, including the inability to achieve or maintain adjusted operating expense to adjusted operating revenue targets; inability to generate future ATM and card income from marketing expenses; variability in the performance of covered loans and associated loss-share related expenses; the effects of negative or soft economic conditions, including stress in the commercial real estate markets or failure of continued recovery in the residential real estate markets; changes in consumer and investor confidence and the related impact on financial markets and institutions; the possibility of recognizing other than temporary impairments on holdings of collateralized loan obligation securities as a result of the Volcker Rule; the potential impacts of any government shutdown or debt ceiling impasse, including the risk of a U.S. credit rating downgrade or default, or continued global economic instability, which could cause disruptions in the financial markets, impact interest rates, and cause other potential unforeseen consequences; fluctuations in the market price of the common stock, regulatory, legal and contractual requirements, other uses of capital, financial performance, market conditions generally, and future actions by the board of directors, in each case impacting repurchases of common stock or declaration of dividends; legal and regulatory developments, including changes in the federal risk-based capital rules; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting, including acquisition accounting fair market value assumptions and accounting for purchased credit-impaired loans, and the impact on Park Sterling's financial statements; and management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.
You should not place undue reliance on any forward-looking statement and should consider all of the preceding uncertainties and risks, as well as those more fully discussed in any of Park Sterling's filings with the SEC. Forward-looking statements speak only as of the date they are made, and Park Sterling undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
PARK STERLING CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
THREE MONTH RESULTS
($ in
thousands,
except per
share amounts) March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- ----------- -----------
Interest income
Loans,
including
fees $ 27,124 $ 19,284 $ 19,475 $ 19,667 $ 19,111
Taxable
investment
securities 2,687 2,677 2,636 2,508 2,791
Tax-exempt
investment
securities 147 146 152 143 138
Nonmarketable
equity
securities 154 109 142 122 127
Interest on
deposits at
banks 42 22 23 18 18
Federal funds
sold 8 1 1 - -
----------- ----------- ----------- ----------- -----------
Total
interest
income 30,162 22,239 22,429 22,458 22,185
----------- ----------- ----------- ----------- -----------
Interest
expense
Money market,
NOW and
savings
deposits 1,017 743 654 532 520
Time deposits 1,398 903 841 752 707
Short-term
borrowings 294 205 90 76 76
Long-term
debt 410 55 134 131 128
Subordinated
debt 446 358 348 351 328
----------- ----------- ----------- ----------- -----------
Total
interest
expense 3,565 2,264 2,067 1,842 1,759
----------- ----------- ----------- ----------- -----------
Net
interest
income 26,597 19,975 20,362 20,616 20,426
Provision for
loan losses 556 409 - 134 180
----------- ----------- ----------- ----------- -----------
Net
interest
income
after
provision 26,041 19,566 20,362 20,482 20,246
Noninterest
income
Service
charges on
deposit
accounts 1,489 1,439 1,370 1,107 1,019
Mortgage
banking
income 775 699 700 956 951
Income from
wealth
management
activities 803 887 947 906 862
Income from
capital
market
activities 68 437 238 394 398
ATM and card
income 573 647 537 629 694
Income from
bank-owned
life
insurance 988 371 1,058 553 768
Gain (loss)
on sale of
securities
available
for sale (6) - 54 - -
Amortization
of
indemnifica-
tion asset
and true-up
liability
expense (147) (165) (162) (165) (394)
Other
noninterest
income 184 208 185 (88) 203
----------- ----------- ----------- ----------- -----------
Total
noninterest
income 4,727 4,523 4,927 4,292 4,501
----------- ----------- ----------- ----------- -----------
Noninterest
expenses
Salaries and
employee
benefits 13,018 9,541 9,952 10,021 10,431
Occupancy and
equipment 3,125 2,680 2,591 2,491 2,555
Data
processing
and outside
service fees 5,523 1,669 1,668 1,640 1,648
Legal and
professional
fees 725 1,471 472 660 798
Deposit
charges and
FDIC
insurance 432 413 401 433 392
Loss on
disposal of
fixed assets 44 50 597 113 237
Communication
fees 483 480 501 541 578
Postage and
supplies 173 99 123 116 149
Loan and
collection
expense 37 194 151 242 154
Core deposit
intangible
amortization 458 347 347 347 347
Advertising
and
promotion 421 271 313 304 374
Net cost of
operation of
other real
estate owned 266 (23) 163 232 35
Other
noninterest
expense 1,448 1,170 1,140 1,092 1,441
----------- ----------- ----------- ----------- -----------
Total
noninterest
expenses 26,153 18,362 18,419 18,232 19,139
----------- ----------- ----------- ----------- -----------
Income
before
income
taxes 4,615 5,727 6,870 6,542 5,608
Income tax
expense 1,874 1,952 2,092 2,273 1,825
----------- ----------- ----------- ----------- -----------
Net income $ 2,741 $ 3,775 $ 4,778 $ 4,269 $ 3,783
=========== =========== =========== =========== ===========
Earnings per
common share,
fully diluted $ 0.05 $ 0.09 $ 0.11 $ 0.10 $ 0.09
Weighted
average
diluted common
shares 52,599,584 44,322,428 44,287,019 44,301,895 44,326,833
PARK STERLING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in
thousands) March 31, December 31, September 30, June 30, March 31,
2016 2015* 2015 2015 2015**
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ------------ ----------- -----------
ASSETS
Cash and due
from banks $ 34,038 $ 53,840 $ 16,096 $ 17,042 $ 17,402
Interest-
earning
balances at
banks 47,143 16,451 41,230 26,940 45,396
Investment
securities
available for
sale 396,863 384,934 401,820 402,489 382,946
Investment
securities
held to
maturity 104,459 106,458 109,072 111,633 108,918
Nonmarketable
equity
securities 13,118 11,366 11,377 13,500 11,163
Federal funds
sold 11,271 235 920 360 325
Loans held for
sale 7,593 4,943 5,145 10,701 9,987
Loans - Non-
covered 2,262,294 1,724,164 1,681,227 1,637,115 1,576,760
Loans -
Covered 16,849 17,651 18,897 20,348 38,092
Allowance for
loan losses (9,832) (9,064) (8,742) (8,468) (8,590)
----------- ----------- ------------ ----------- -----------
Net loans 2,269,311 1,732,751 1,691,382 1,648,995 1,606,262
----------- ----------- ------------ ----------- -----------
Premises and
equipment,
net 65,494 55,658 56,948 58,979 58,796
FDIC
receivable
for loss
share
agreements 1,477 943 1,190 1,209 2,333
Other real
estate owned
- non-covered 3,425 4,211 7,087 8,904 8,570
Other real
estate owned
- covered 985 1,240 1,056 884 1,713
Bank-owned
life
insurance 69,202 58,633 58,286 57,823 57,494
Deferred tax
asset 30,088 28,971 29,711 32,137 33,314
Goodwill 63,707 29,197 29,197 29,197 29,197
Core deposit
intangible 12,813 9,571 9,918 10,265 10,612
Other assets 22,750 14,862 14,699 12,822 13,436
----------- ----------- ------------ ----------- -----------
Total assets $ 3,153,737 $ 2,514,264 $ 2,485,134 $ 2,443,880 $ 2,397,864
=========== =========== ============ =========== ===========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Deposits:
Demand
noninterest-
bearing $ 469,046 $ 350,836 $ 370,815 $ 347,162 $ 341,488
Money market,
NOW and
savings 1,255,848 1,062,046 1,041,502 988,847 1,008,743
Time deposits 773,089 539,780 534,541 538,932 533,906
----------- ----------- ------------ ----------- -----------
Total
deposits 2,497,983 1,952,662 1,946,858 1,874,941 1,884,137
Short-term
borrowings 170,000 185,000 130,000 180,000 125,000
Long-term debt 65,000 30,000 55,000 55,000 55,000
Subordinated
debt 33,014 24,262 24,092 23,922 23,752
Accrued
expenses and
other
liabilities 38,229 37,636 44,979 30,274 30,857
----------- ----------- ------------ ----------- -----------
Total
liabilities 2,804,226 2,229,560 2,200,929 2,164,137 2,118,746
Shareholders'
equity:
Common stock 53,038 44,854 44,909 44,911 44,877
Additional
paid-in
capital 274,706 222,596 222,587 222,271 223,139
Retained
earnings 21,263 20,117 17,692 14,261 11,338
Accumulated
other
comprehen-
sive income
(loss) 504 (2,863) (983) (1,700) (236)
----------- ----------- ------------ ----------- -----------
Total
shareholders'
equity 349,511 284,704 284,205 279,743 279,118
----------- ----------- ------------ ----------- -----------
Total
liabilities
and
shareholders'
equity $ 3,153,737 $ 2,514,264 $ 2,485,134 $ 2,443,880 $ 2,397,864
=========== =========== ============ =========== ===========
Common
shares
issued and
outstanding 53,038,020 44,854,509 44,909,447 44,910,686 44,877,194
* Derived from audited financial statements.
** Revised to reflect measurement period adjustments to goodwill.
PARK STERLING CORPORATION
SUMMARY OF LOAN PORTFOLIO
($ in thousands)
December September
March 31, 31, 30, June 30, March 31,
2016 2015* 2015 2015 2015
BY LOAN TYPE (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ------------ ----------- -----------
Commercial:
Commercial
and
industrial $ 334,027 $ 246,907 $ 211,741 $ 189,356 $ 186,295
Commercial
real estate
(CRE) -
owner-
occupied 374,428 331,222 328,327 330,853 337,739
CRE -
investor
income
producing 723,539 506,110 514,118 498,190 470,555
Acquisition,
construction
and
development
(AC&D) - 1-4
Family
Construction 97,614 32,262 27,299 31,500 28,650
AC&D - Lots
and land 88,492 44,411 47,948 48,680 50,372
AC&D - CRE
construction 136,561 87,452 85,643 86,570 84,116
Other
commercial 10,167 8,601 8,830 7,212 5,931
----------- ----------- ------------ ----------- -----------
Total
commercial
loans 1,764,828 1,256,965 1,223,906 1,192,361 1,163,658
----------- ----------- ------------ ----------- -----------
Consumer:
Residential
mortgage 235,737 223,884 224,110 214,850 209,384
Home equity
lines of
credit 177,594 157,378 157,430 156,960 154,415
Residential
construction 71,117 72,170 66,823 62,973 59,233
Other loans
to
individuals 27,245 28,817 24,896 27,696 25,845
----------- ----------- ------------ ----------- -----------
Total
consumer
loans 511,693 482,249 473,259 462,479 448,877
----------- ----------- ------------ ----------- -----------
Total
loans 2,276,521 1,739,214 1,697,165 1,654,840 1,612,535
Deferred
costs (fees) 2,622 2,601 2,959 2,623 2,317
----------- ----------- ------------ ----------- -----------
Total
loans,
net of
deferred
costs
(fees) $ 2,279,143 $ 1,741,815 $ 1,700,124 $ 1,657,463 $ 1,614,852
=========== =========== ============ =========== ===========
* Derived from audited financial statements.
March 31, December 31, September 30, June 30, March 31,
BY ACQUIRED AND 2016 2015* 2015 2015 2015
NON-ACQUIRED (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ------------ ----------- -----------
Acquired loans
- performing $ 726,025 $ 279,949 $ 300,102 $ 317,394 $ 341,078
Acquired loans
- purchase
credit
impaired 106,105 94,917 102,537 112,819 119,943
----------- ----------- ------------ ----------- -----------
Total
acquired
loans 832,130 374,866 402,639 430,213 461,021
Non-acquired
loans, net of
deferred costs
(fees)** 1,447,013 1,366,949 1,297,485 1,227,250 1,153,831
----------- ----------- ------------ ----------- -----------
Total loans $ 2,279,143 $ 1,741,815 $ 1,700,124 $ 1,657,463 $ 1,614,852
=========== =========== ============ =========== ===========
* Derived from audited financial statements.
** Includes loans transferred from acquired pools following release of
acquisition accounting FMV adjustments.
PARK STERLING CORPORATION
ALLOWANCE FOR LOAN LOSSES
THREE MONTH RESULTS
($ in
thousands) March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ------------ ------------- ----------- -----------
Beginning of
period
allowance $ 9,064 $ 8,742 $ 8,468 $ 8,590 $ 8,262
Loans
charged-off (82) (237) (121) (572) (265)
Recoveries
of loans
charged-off 294 150 415 245 413
----------- ------------ ------------- ----------- -----------
Net
charge-
offs 212 (87) 294 (327) 148
----------- ------------ ------------- ----------- -----------
Provision
expense 556 409 - 205 180
Benefit
attributable
to FDIC
loss share
agreements - - - (71) -
----------- ------------ ------------- ----------- -----------
Total
provision
expense
charged
to
opera-
tions 556 409 - 134 180
Provision
expense
recorded
through
FDIC loss
share
receivable - - (20) 71 -
----------- ------------ ------------- ----------- -----------
End of
period
allowance $ 9,832 $ 9,064 $ 8,742 $ 8,468 $ 8,590
=========== ============ ============= =========== ===========
Net charge-
offs
(recover-
ies) $ (212)$ 87 $ (294)$ 327 $ (148)
Net charge-
offs
(recoveries)
to average
loans
(annualized) -0.04% 0.02% -0.07% 0.08% -0.04%
PARK STERLING CORPORATION
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS
THREE MONTHS
($ in March 31, March 31,
thousands) 2016 2015
---------- ----------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate (3) Balance Expense Rate (3)
---------- -------- -------- ---------- -------- --------
Assets
Interest-
earning
assets:
Loans and
loans held
for sale, net
(1)(2) $2,274,824 $ 27,124 4.80% $1,602,483 $ 19,111 4.84%
Fed funds sold 6,895 8 0.47% 460 - 0.00%
Taxable
investment
securities 487,154 2,687 2.21% 479,731 2,791 2.33%
Tax-exempt
investment
securities 16,047 147 3.66% 12,851 138 4.30%
Other
interest-
earning
assets 48,772 196 1.62% 60,470 145 0.97%
---------- -------- -------- ---------- -------- --------
Total
interest-
earning
assets 2,833,692 30,162 4.28% 2,155,995 22,185 4.17%
Allowance for
loan losses (9,864) (8,369)
Cash and due
from banks 36,758 16,937
Premises and
equipment 66,514 59,350
Goodwill 62,055 29,240
Intangible
assets 12,718 10,778
Other assets 130,752 119,575
---------- ----------
Total assets $3,132,625 $2,383,506
========== ==========
Liabilities and
shareholders'
equity
Interest-
bearing
liabilities:
Interest-
bearing
demand $ 426,795 $ 85 0.08% $ 407,900 $ 67 0.07%
Savings and
money market 733,301 831 0.46% 517,344 395 0.31%
Time deposits
- core 710,289 1,219 0.69% 461,304 588 0.52%
Brokered
deposits 126,824 280 0.89% 140,563 177 0.51%
---------- -------- -------- ---------- -------- --------
Total
interest-
bearing
deposits 1,997,209 2,415 0.49% 1,527,111 1,227 0.33%
Short-term
borrowings 191,701 294 0.62% 151,222 76 0.20%
Long-term debt 65,824 410 2.51% 52,889 128 0.98%
Subordinated
debt 32,930 446 5.45% 23,664 328 5.62%
---------- -------- -------- ---------- -------- --------
Total
borrowed
funds 290,455 1,150 1.59% 227,775 532 0.95%
---------- -------- -------- ---------- -------- --------
Total
interest-
bearing
liabilities 2,287,664 3,565 0.63% 1,754,886 1,759 0.41%
---------- -------- -------- ---------- -------- --------
Net interest
rate spread 26,597 3.65% 20,426 3.77%
-------- -------- -------- --------
Noninterest-
bearing demand
deposits 456,457 319,414
Other
liabilities 39,948 31,019
Shareholders'
equity 348,556 278,187
---------- ----------
Total
liabilities
and
shareholders'
equity $3,132,625 $2,383,506
========== ==========
-------- --------
Net interest
margin 3.78% 3.84%
======== ========
(1) Nonaccrual loans are included in the average loan balances.
(2) Interest income and yields for the three months ended March 31, 2016 and
2015 include accretion from acquisition accounting adjustments
associated with acquired loans.
(3) Yield/ rate calculated on Actual/Actual day count basis, except for
yield on investments which is calculated on a 30/360 day count basis.
PARK STERLING CORPORATION
SELECTED RATIOS
($ in
thousands,
except per
share
amounts) March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
Unaudited Unaudited Unaudited Unaudited Unaudited
----------- ------------ ------------- ----------- -----------
ASSET
QUALITY
Nonaccrual
loans $ 6,595 $ 4,326 $ 5,342 $ 5,545 $ 6,397
Troubled
debt
restruc-
turing (and
still
accruing) 2,696 2,774 3,090 3,115 3,273
Past due
90 days
plus (and
still
accruing) 293 1,151 47 - 10
Nonperform-
ing loans 9,584 8,251 8,479 8,660 9,680
OREO 4,410 5,451 8,143 9,788 10,283
Nonperform-
ing
assets 13,994 13,702 16,622 18,448 19,963
Past due
30-59
days (and
still
accruing) 217 1,222 1,790 2,559 1,285
Past due
60-89
days (and
still
accruing) 499 1,340 3,753 481 457
Nonperform-
ing loans
to total
loans 0.42% 0.47% 0.50% 0.52% 0.60%
Nonperform-
ing
assets to
total
assets 0.44% 0.54% 0.67% 0.75% 0.83%
Allowance
to total
loans 0.43% 0.52% 0.51% 0.51% 0.53%
Allowance
to
nonperform-
ing
loans 102.59% 109.85% 103.10% 97.78% 88.74%
Allowance
to
nonperform-
ing
assets 70.26% 66.15% 52.59% 45.90% 43.03%
Past due
30-89
days
(accruing)
to
total
loans 0.03% 0.15% 0.33% 0.18% 0.11%
Net
charge-
offs
(recover-
ies) to
average
loans
(annual-
ized) -0.04% 0.02% -0.07% 0.08% -0.04%
CAPITAL
Book value
per
common
share $ 6.69 $ 6.49 $ 6.47 $ 6.37 $ 6.34
Tangible
book
value per
common
share** $ 5.22 $ 5.60 $ 5.58 $ 5.47 $ 5.44
Common
shares
outstand-
ing 53,038,020 44,854,509 44,909,447 44,910,686 44,877,194
Weighted
average
dilutive
common
shares
outstand-
ing 52,599,584 44,322,428 44,287,019 44,301,895 44,326,833
Common
Equity
Tier 1
(CET1)
capital $ 275,490 $ 251,807 $ 249,289 $ 245,328 242,197
Tier 1
capital 300,354 268,605 265,917 261,596 $ 256,843
Tier 2
capital 9,832 9,064 8,742 8,577 8,836
Total risk
based
capital 310,186 277,669 274,659 270,173 265,679
Risk
weighted
assets 2,478,547 1,939,417 1,887,065 1,844,540 1,707,551
Average
assets
for
leverage
ratio 3,076,505 2,441,811 2,434,376 2,359,401 2,334,285
Common
Equity
Tier 1
(CET1)
ratio 11.11% 12.98% 13.21% 13.30% n/a
Tier 1
ratio 12.12% 13.85% 14.09% 14.18% 15.04%
Total risk
based
capital
ratio 12.51% 14.32% 14.55% 14.65% 15.56%
Tier 1
leverage
ratio 9.76% 11.00% 10.92% 11.09% 11.00%
Tangible
common
equity to
tangible
assets** 8.87% 9.93% 10.02% 9.99% 10.15%
LIQUIDITY
Net loans
to total
deposits 90.85% 88.74% 86.88% 87.95% 85.25%
Reliance
on
wholesale
funding 15.50% 16.77% 16.02% 18.45% 16.55%
INCOME STATEMENT (THREE MONTH RESULTS; ANNUALIZED)
Return on
Average
Assets 0.35% 0.60% 0.77% 0.71% 0.64%
Return on
Average
Common
Equity 3.16% 5.26% 6.71% 6.10% 5.52%
Net
interest
margin
(non-tax
equiva-
lent) 3.78% 3.52% 3.58% 3.78% 3.84%
** Non-GAAP
financial
measure
Non-GAAP Financial Measures
Tangible assets, tangible common equity, tangible book value, adjusted net income, adjusted noninterest income, adjusted operating revenues, adjusted noninterest expense, adjusted operating expenses, adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. Management uses (i) tangible assets, tangible common equity and tangible book value (which exclude goodwill and other intangibles from equity and assets), and related ratios, to evaluate the adequacy of shareholders' equity and to facilitate comparisons with peers; (ii) adjusted allowance for loan losses (which includes net FMV adjustments related to acquired loans) as supplemental information for comparing the combined allowance and fair market value adjustments to the combined acquired and non-acquired loan portfolios (fair market value adjustments are available only for losses on acquired loans); and (iii) adjusted net income and adjusted noninterest income (which exclude merger-related expenses and gain or loss on sale of securities, as applicable), adjusted noninterest expense (which excludes merger-related expenses), adjusted operating expense (which excludes merger-related expenses and amortization of intangibles) and adjusted operating revenues (which includes net interest income and noninterest income and excludes gain or loss on sale of securities, as applicable) to evaluate core earnings and to facilitate comparisons with peers.
PARK STERLING CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
($ in thousands, except per share amounts)
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- ----------- -----------
Adjusted net
income
(three
months)
Pretax
income (as
reported) $ 4,615 $ 5,727 $ 6,870 $ 6,542 $ 5,608
Plus:
merger-
related
expenses 5,193 1,396 31 167 122
(gain)
loss on
sale of
securities 6 - (54) - -
----------- ----------- ----------- ----------- -----------
Adjusted
pretax
income 9,814 7,123 6,847 6,709 5,730
Tax expense 3,646 2,332 2,085 2,331 1,867
----------- ----------- ----------- ----------- -----------
Adjusted
net
income $ 6,168 $ 4,791 $ 4,762 $ 4,378 $ 3,863
=========== =========== =========== =========== ===========
Divided by:
weighted
average
diluted
shares 52,599,584 44,322,428 44,287,019 44,301,895 44,326,833
Adjusted
net
income
per share 0.12 $ 0.11 $ 0.11 $ 0.10 $ 0.09
Estimated
tax rate
for
adjustment 34.09 % 32.75 % 32.56 % 34.75 % 34.23 %
Adjusted
noninterest
income
Noninterest
income (as
reported) $ 4,727 $ 4,523 $ 4,927 $ 4,292 $ 4,501
Less:
(gain)
loss on
sale of
securities 6 - (54) - -
----------- ----------- ----------- ----------- -----------
Adjusted
noninterest
income $ 4,733 $ 4,523 $ 4,873 $ 4,292 $ 4,501
=========== =========== =========== =========== ===========
Adjusted
noninterest
expenses
Noninterest
expenses
(as
reported) $ 26,153 $ 18,362 $ 18,419 $ 18,232 $ 19,139
Less:
merger-
related
expenses (5,193) (1,396) (31) (167) (122)
----------- ----------- ----------- ----------- -----------
Adjusted
noninterest
expenses $ 20,960 $ 16,966 $ 18,388 $ 18,065 $ 19,017
=========== =========== =========== =========== ===========
Adjusted
operating
expense
Noninterest
expenses
(as
reported) $ 26,153 $ 18,362 $ 18,419 $ 18,232 $ 19,139
Less:
merger-
related
expenses (5,193) (1,396) (31) (167) (122)
Less:
amortization
of
intangibles (458) (347) (347) (347) (347)
----------- ----------- ----------- ----------- -----------
Adjusted
operating
expense $ 20,502 $ 16,619 $ 18,041 $ 17,718 $ 18,670
=========== =========== =========== =========== ===========
Adjusted
operating
revenues
Net
Interest
Income (as
reported) $ 26,597 $ 19,975 $ 20,362 $ 20,616 $ 20,426
Plus:
noninterest
income (as
reported) 4,727 4,523 4,927 4,292 4,501
Less:
(gain)
loss on
sale of
securities 6 - (54) - -
----------- ----------- ----------- ----------- -----------
Adjusted
operating
revenues $ 31,330 $ 24,498 $ 25,235 $ 24,908 $ 24,927
=========== =========== =========== =========== ===========
Adjusted
operating
expense to
adjusted
operating
revenues
Adjusted
operating
expense $ 20,502 $ 16,619 $ 18,041 $ 17,718 $ 18,670
Divided by:
adjusted
operating
revenues 31,330 24,498 25,235 24,908 24,927
----------- ----------- ----------- ----------- -----------
Adjusted
operating
expense
to
operating
revenues 65.44% 67.84% 71.49% 71.13% 74.90%
=========== =========== =========== =========== ===========
Adjusted
return on
average
assets
Adjusted
net
income $ 6,168 $ 4,791 $ 4,762 $ 4,378 $ 3,863
Divided by:
average
assets 3,132,625 2,480,983 2,473,034 2,406,671 2,383,506
Multiplied
by:
annualiza-
tion factor 4.02 3.97 3.97 4.01 4.06
----------- ----------- ----------- ----------- -----------
Adjusted
return on
average
assets 0.79% 0.77% 0.76% 0.73% 0.66%
=========== =========== =========== =========== ===========
Return on
average
assets 0.35% 0.60% 0.77% 0.71% 0.64%
=========== =========== =========== =========== ===========
PARK STERLING CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
($ in thousands, except per share amounts)
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- ----------- -----------
Adjusted
return on
average
equity
Adjusted
net
income $ 6,168 $ 4,791 $ 4,762 $ 4,378 $ 3,863
Divided by:
average
common
equity 348,556 284,671 282,426 280,676 278,187
Multiplied
by:
annualiza-
tion factor 4.02 3.97 3.97 4.01 4.06
----------- ----------- ----------- ----------- -----------
Adjusted
return on
average
equity 7.12% 6.68% 6.69% 6.26% 5.63%
=========== =========== =========== =========== ===========
Return on
average
equity 3.16% 5.26% 6.71% 6.10% 5.52%
=========== =========== =========== =========== ===========
Tangible
common
equity to
tangible
assets
Total
assets $ 3,153,737 $ 2,514,264 $ 2,485,134 $ 2,443,880 $ 2,397,864
Less:
intangible
assets (76,520) (38,768) (39,115) (39,462) (39,809)
----------- ----------- ----------- ----------- -----------
Tangible
assets $ 3,077,217 $ 2,475,496 $ 2,446,019 $ 2,404,418 $ 2,358,055
=========== =========== =========== =========== ===========
Total
common
equity $ 349,511 $ 284,704 $ 284,205 $ 279,743 $ 279,118
Less:
intangible
assets (76,520) (38,768) (39,115) (39,462) (39,809)
----------- ----------- ----------- ----------- -----------
Tangible
common
equity $ 272,991 $ 245,936 $ 245,090 $ 240,281 $ 239,309
=========== =========== =========== =========== ===========
Tangible
common
equity $ 272,991 $ 245,936 $ 245,090 $ 240,281 $ 239,309
Divided by:
tangible
assets 3,077,217 2,475,496 2,446,019 2,404,418 2,358,055
----------- ----------- ----------- ----------- -----------
Tangible
common
equity to
tangible
assets 8.87% 9.93% 10.02% 9.99% 10.15%
=========== =========== =========== =========== ===========
Common
equity to
assets 11.08% 11.32% 11.44% 11.45% 11.64%
=========== =========== =========== =========== ===========
Tangible
book value
per share
Issued and
outstanding
shares 53,038,020 44,854,509 44,909,447 44,910,686 44,877,194
Less:
nondilutive
restricted
stock
awards (785,658) (959,305) (974,183) (985,531) (882,178)
----------- ----------- ----------- ----------- -----------
Period end
dilutive
shares 52,252,362 43,895,204 43,935,264 43,925,155 43,995,016
=========== =========== =========== =========== ===========
Tangible
common
equity $ 272,991 $ 245,936 $ 245,090 $ 240,281 $ 239,309
Divided by:
period end
dilutive
shares 52,252,362 43,895,204 43,935,264 43,925,155 43,995,016
----------- ----------- ----------- ----------- -----------
Tangible
common
book
value per
share $ 5.22 $ 5.60 $ 5.58 $ 5.47 $ 5.44
=========== =========== =========== =========== ===========
Common
book
value per
share $ 6.69 $ 6.49 $ 6.47 $ 6.37 $ 6.34
=========== =========== =========== =========== ===========
Adjusted
allowance
for loan
losses
Allowance
for loan
losses $ 9,832 $ 9,064 $ 8,742 $ 8,468 $ 8,590
Plus:
acquisition
accounting
FMV
adjustments
to acquired
loans 33,589 28,173 29,548 31,159 32,209
----------- ----------- ----------- ----------- -----------
Adjusted
allowance
for loan
losses $ 43,421 $ 37,237 $ 38,290 $ 39,627 $ 40,799
=========== =========== =========== =========== ===========
Divided by:
total
loans
(excluding
LHFS
before FMV
adjust-
ments) $ 2,312,732 $ 1,769,988 $ 1,729,672 $ 1,688,622 $ 1,647,061
----------- ----------- ----------- ----------- -----------
Adjusted
allowance
for loan
losses to
total
loans 1.88% 2.10% 2.21% 2.35% 2.48%
----------- ----------- ----------- ----------- -----------
Allowance
for loan
losses to
total
loans 0.43% 0.52% 0.51% 0.51% 0.53%
=========== =========== =========== =========== ===========
For additional information contact:
Donald K. Truslow
Chief Financial Officer
(704) 716-2134
don.truslow@parksterlingbank.com
Distribution channels: Banking, Finance & Investment Industry
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