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First Community Corporation Announces Record Annual Earnings, Fourth Quarter Earnings and Increased Cash Dividend

LEXINGTON, S.C., Jan. 16, 2019 /PRNewswire/ --

First Community Corporation logo. (PRNewsFoto/First Community Corporation)

Highlights

  • Net income of $11.2 million in 2018 and $2.7 million for the fourth quarter
  • Increased cash dividend to $0.11 per common share, the 68th consecutive quarter of cash dividends paid to common shareholders, highest dividend ever paid by the company
  • Loan growth of $71.7 million during the year, an 11.1% growth rate
  • Pure deposit growth, including customer cash management accounts, of $56.4 million, a 7.5% growth rate
  • Key credit quality metrics continue to be excellent with a year-to-date net loan recovery of $215 thousand and non-performing assets of 0.37% and past dues of 0.26% at year end

Today, First Community Corporation (FCCO), the holding company for First Community Bank, reported net income for the fourth quarter and year end of 2018.  For the year ended December 31, 2018 net income was $11.2 million an increase of 93.1% over 2017.  Diluted earnings per share for 2018 were $1.45 an increase of 74.7% over 2017.  Net income for the fourth quarter of 2018 was $2.7 million.  Diluted earnings per share were $0.35 for the fourth quarter of 2018.  For comparison purposes, it should be noted that the year of 2017 was negatively impacted by expenses associated with the conversion to a new operating system in the amount of approximately $300 thousand, the Cornerstone National Bank acquisition in the amount of $945 thousand and an adjustment to the deferred tax asset of $1.2 million related to the Tax Cuts and Jobs Act. 

First Community President and CEO Michael Crapps commented, "We are extremely pleased to report record earnings for our company for the year of 2018.  Through the efforts of our talented team of bankers we experienced significant loan and pure deposit growth, along with growth in our residential mortgage and financial planning lines of business.  In 2018, we also benefitted from loan portfolio activities such as credit mark recaptures, nonaccrual loan interest income recoveries and other related benefits."  

Cash Dividend and Capital
The Board of Directors has approved an increase in the cash dividend for the fourth quarter of 2018 to $0.11 per common share.  This dividend is payable on February 15, 2019 to shareholders of record of the company's common stock as of January 31, 2019.  Mr. Crapps commented, "The entire board is pleased that our company's strong financial performance enables us to increase the cash dividend to the highest level ever paid by the company.  We are also proud that dividend payments have continued uninterrupted for 68 consecutive quarters." 

Each of the regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) exceeds the well capitalized minimum levels currently required by regulatory statute.  At December 31, 2018, the company's regulatory capital ratios (Leverage, Tier I Risk Based and Total Risk Based) were 10.47%, 13.83%, and 14.60%, respectively.  This compares to the same ratios as of December 31, 2017 of 10.35%, 14.25%, and 15.05%, respectively.  Additionally, the regulatory capital ratios for the company's wholly owned subsidiary, First Community Bank, were 9.97%, 13.17%, and 13.94% respectively as of December 31, 2018.  Further, the company's ratio of tangible common equity to tangible assets indicates a high quality of capital with a ratio of 8.92% as of December 31, 2018.  The common equity tier one ratio for the company and the bank was 12.06% and 13.17%, respectively, at December 31, 2018. 

Asset Quality
The company's asset quality remains excellent.  The non-performing assets ratio decreased on a linked quarter basis to 0.37% of total assets at December 31, 2018, as compared to the ratio of 0.45% at the end of the third quarter of 2018 and down from 0.51% at December 31, 2017.  The nominal level of non-performing assets was $4.0 million at year end 2018 down 16.8% from $4.9 million at the end of the third quarter of 2018 and down 24.0% from $5.3 million at the end of 2017.  The past due ratio for all loans was 0.26% at year-end 2018 down from 0.38% at the end of third quarter 2018 and 0.33% at year-end 2017. 

During the fourth quarter the bank experienced net loan charge offs of $21 thousand, but overall net loan recoveries for the year of 2018 were $215 thousand.   The ratio of classified loans plus OREO now stands at 5.07% of total bank regulatory risk-based capital as of December 31, 2018. 

Balance Sheet
(Numbers in millions)


Quarter
Ended

12/31/18

Quarter
Ended

12/31/17

Quarter
Ended

9/30/18

 

12 Month

$ Variance

 

12 Month

% Variance

Assets






     Investments

$256.0

$284.4

$270.0

($28.4)

(10.0%)

     Loans

718.5

646.8

696.5

71.7

11.1%







Liabilities






     Total Pure Deposits

$777.2

$729.5

$773.6

$47.7

6.5%

     Certificates of Deposit

148.4

158.8

148.2

(10.4)

(6.5%)

Total Deposits

$925.6

$888.3

$921.8

37.3

4.2%







Customer Cash Management

$28.0

$19.3

$33.2

$8.7

45.1%

FHLB Advances

0.2

14.3

4.2

(14.1)

(98.6%)







Total Funding

$953.8

$921.9

$959.1

$31.9

3.5%

Cost of Funds

     (including demand deposits)

0.49%

0.30%

0.45%


19 bps

Cost of Deposits

0.39%

0.22%

0.35%


17 bps

Mr. Crapps commented, "A highlight of the year was exceptional loan and pure deposit growth, including cash management accounts, of $71.7 million and $56.4 million, respectively, which represents annual growth rates of 11.1% for loans and 7.5% for deposits.  We ended the year strong with loan growth of $22 million in the fourth quarter, a 12.6% annualized growth rate.  The quality of our loan portfolio is evident in the excellent credit metrics.  In addition, our deposit franchise lead by pure deposits and customer cash management accounts continues to be a strength even as we battle the headwinds of a rising rate environment." 

Revenue
Net Interest Income/Net Interest Margin
Net interest income increased $6.4 million year-over-year to $35.8 million in 2018, an increase of 21.6%.  On a linked quarter basis net interest income increased $509 thousand, a 5.7% increase.  The net interest margin, on a taxable equivalent basis, increased to 3.79% for the fourth quarter of 2018 up from 3.60% in the third quarter of the year.  During the fourth quarter, the company experienced a credit mark and nonaccrual interest recovery of $228 thousand related to one loan that positively impacted net interest margin, on a tax equivalent basis, by 9 basis points.  Excluding this, the net interest margin, on a tax equivalent basis, for the fourth quarter would have been 3.70%.  In addition, the bank recovered or was able to recognize $72 thousand in expenses or income related to this same loan.  Mr. Crapps commented, "We are pleased with this increase in our net interest margin on a linked quarter basis which is improved even excluding the benefit of the credit mark and nonaccrual interest recovery.  Prior to the third quarter the company had experienced eight consecutive quarters of net interest margin expansion."  Crapps continued, "We continue to benefit from our strong deposit franchise with total deposit costs increasing only 4 basis points in the quarter to 39 basis points. This is a 16% deposit beta for the quarter and only an 8% deposit beta for this cycle of rising rates beginning with the third quarter of 2016." 

Non-Interest Income
Non-interest income for the year, adjusted for securities gains/(losses) and losses on the early extinguishment of debt increased year-over-year to $11.0 million in 2018 compared to $9.7 million in 2017, an increase of 13.4%.  Revenues in the mortgage line of business for the year increased year-over-year to $3.9 million in 2018 from $3.8 million in 2017, an increase of 2.6% with mortgage production year-over-year increasing 10.3% to $119.8 million in 2018 from $108.6 million in 2017.  During the fourth quarter, mortgage production increased slightly as compared to the fourth quarter of 2017; however fee revenue declined due to a decrease in the gain-on-sale margin, which was driven by a difference in product mix.  Revenue in the investment advisory line of business increased year-over-year to $1.7 million in 2018 from $1.3 million in 2017 and on a linked quarter basis to $476 thousand in the fourth quarter of 2018 compared to $423 thousand in the third quarter.  Mr. Crapps noted, "Our strategy of generating revenue streams from multiple lines of business continues to serve us well and we are focused on continuing to leverage each of our lines of business."

Non-Interest Expense
Non-interest expense was $8.170 million in the fourth quarter of 2018 compared to $8.134 million in the third quarter, an increase of just $36 thousand on a linked quarter basis.  Marketing and public relations expenses were up as planned in the fourth quarter with costs related to the production of new advertising campaign creative material, and the FDIC insurance assessment expense was up as well, while other expense categories experienced decreases on a linked quarter comparison. 

Other
As previously announced, the company has planned expansion in its Upstate and Augusta market regions during 2019 with the opening of new full service facilities scheduled for February of this year in downtown Greenville and Evans, Georgia mid-year.  Mr. Crapps noted, "While these new banking offices will have a negative impact on earnings in the short term, we are excited about the long term benefit that these new initiatives will provide our company."

First Community Corporation stock trades on the NASDAQ Capital Market under the symbol "FCCO" and is the holding company for First Community Bank, a local community bank based in the Midlands of South Carolina.  First Community Bank is a full service commercial bank offering deposit and loan products and services, residential mortgage lending and financial planning/investment advisory services for businesses and consumers.  First Community serves customers in the Midlands, Aiken, and Upstate, South Carolina markets as well as Augusta, Georgia.  For more information, visit www.firstcommunitysc.com.

FORWARD-LOOKING STATEMENTS
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, goals, projections and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Such risks, uncertainties and other factors, include, among others, the following: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; (5) adverse conditions in the stock market, the public debt markets and other capital markets (including changes in interest rate conditions) could have a negative impact on the company; (6) technology and cybersecurity risks, including potential business disruptions, reputational risks, and financial losses, associated with potential attacks on or failures by our computer systems and computer systems of our vendors and other third parties; and (7) risks, uncertainties and other factors disclosed in our most recent Annual Report on Form 10-K filed with the SEC, or in any of our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC since the end of the fiscal year covered by our most recently filed Annual Report on Form 10-K, which are available at the SEC's Internet site (http://www.sec.gov).

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. We can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

 

FIRST COMMUNITY CORPORATION












BALANCE SHEET DATA;







(Dollars in thousands, except per share data)















At December 31,






2018

2017










  Total Assets



$    1,091,595

$1,050,731



  Other short-term investments (1)


17,940

15,788



  Investment Securities



256,022

284,395



  Loans held for sale



3,223

5,093



  Loans



718,462

646,805



  Allowance for Loan Losses



6,263

5,797



  Total Deposits



925,523

888,323



  Securities Sold Under Agreements to Repurchase

28,022

19,270



  Federal Home Loan Bank Advances


231

14,250



  Junior Subordinated Debt



14,964

14,964



  Shareholders' Equity



112,497

105,663










  Book Value Per Common Share 


$          14.74

$       13.93



  Tangible Book Value Per Common Share 


$          12.56

$       11.66



  Equity to Assets



10.31%

10.06%



  Tangible common equity to tangible assets


8.92%

8.56%



  Loan (incl loans held for sale) to Deposit Ratio

77.98%

73.39%



  Allowance for Loan Losses/Loans


0.87%

0.90%










  Regulatory Ratios:







   Leverage Ratio



10.47%

10.35%



   Tier 1 Capital Ratio



13.83%

14.25%



   Total Capital Ratio



14.60%

15.05%



   Common Equity Tier 1



12.06%

12.26%



 Tier 1 Regulatory Capital



$       112,736

$   103,639



 Total Regulatory Capital



$       118,999

$   109,436



 Common Equity Tier 1 Capital



$        98,277

$     89,139



(1) Includes federal funds sold, securities purchased under agreements to resell and interest-bearing deposits








Average Balances:









Three months ended


Year ended



December 31,


December 31, 



2018

2017


2018

2017








  Average Total Assets


$    1,091,208

$    1,018,290


$1,076,671

$     937,683

  Average Loans (incl loans held for sale)

713,135

624,871


686,438

577,730

  Average Earning Assets


995,721

926,052


981,215

859,453

  Average Deposits


923,930

866,672


915,138

790,500

  Average Other Borrowings


49,006

41,406


46,155

51,171

  Average Shareholders' Equity


109,144

102,075


107,178

88,706






















Asset Quality:


December 31, 

September 30,

June 30,

March 31,

December 31,



2018

2018

2018

2018

2017

Loan Risk Rating by Category (End of Period)






       Special Mention


$          7,693

$          6,716

$       7,212

$      9,348

$       10,121

       Substandard


4,408

5,811

5,923

7,033

7,380

       Doubtful



-

-

-

-

       Pass (includes held for sale)

706,361

683,988

671,198

652,202

629,304



$       718,462

$       696,515

$   684,333

$   668,583

$     646,805








  Nonperforming Assets:







   Non-accrual loans


$          2,546

$          2,904

$       2,958

3,117

$         3,380

   Other real estate owned


1,460

1,921

1,824

1,887

1,934

   Accruing loans past due 90 days or more

31

29

959

34

-

            Total nonperforming assets

$          4,037

$          4,854

$       5,741

$      5,038

$         5,314

Accruing troubled debt restructurings

$          1,835

$          1,829

$       1,926

$      1,794

$         1,770










Three months ended


Year ended



December 31,


December 31, 



2018

2017


2018

2017

Loans charged-off:


$               26

$               17


$           35

$             61

Overdrafts charged-off


29

36


129

112

Loan recoveries


(3)

(18)


(249)

(207)

Overdraft recoveries


(9)

(6)


(35)

(19)

  Net Charge-offs (recoveries)


$               43

$               29


$        (120)

$            (53)








Net charge-offs to average loans


0.01%

0.00%


n/a

n/a


 

 

FIRST COMMUNITY CORPORATION















INCOME STATEMENT DATA
















(Dollars in thousands, except per share data)

















Three months ended


Three months ended


Three months ended


Three months ended


Year ended



December 31,


September 30,


June 30,


March 31,


December 31,



2018

2017


2018

2017


2018

2017


2018

2017


2018

2017

  Interest Income


$    10,594

$     8,738


$     9,985

$     7,921


$     9,819

$     7,724


$     9,331

$     7,773


$   39,729

$   32,156

  Interest Expense


1,202

680


1,102

694


880

675


797

712


3,981

2,762

  Net Interest Income


9,392

8,058


8,883

7,227


8,939

7,049


8,534

7,061


35,748

29,394

  Provision for Loan Losses


94

170


21

166


29

78


202

116


346

530

  Net Interest Income After Provision


9,298

7,888


8,862

7,061


8,910

6,971


8,332

6,945


35,402

28,864

  Non-Interest Income:
















    Deposit service charges


449

439


434

379


423

348


463

320


1,769

1,486

    Mortgage banking income


769

828


1,159

1,032


1,016

1,248


951

670


3,895

3,778

    Investment advisory fees and non-deposit commissions

476

383


423

336


401

314


383

258


1,683

1,291

    Gain (loss) on sale of securities


(332)

49


-

124


94

172


(104)

54


(342)

400

    Gain (loss) on sale other assets


16

107


(29)

40


22

68


15

20


24

235

    Loss on early extinguishment of debt


-

-


-

(165)


-

(223)


-

(58)


-

(447)

    Other


882

787


855

676


955

717


923

714


3,615

2,896

  Total non-interest income


2,260

2,593


2,842

2,422


2,911

2,644


2,631

1,978


10,644

9,639

  Non-interest Expense:
















    Salaries and employee benefits


4,978

4,482


5,079

4,122


4,881

4,261


4,577

4,086


19,515

16,951

    Occupancy


572

568


611

532


583

539


614

527


2,380

2,166

    Equipment


346

422


388

396


398

506


381

446


1,513

1,771

    Marketing and public relations


459

286


177

96


194

298


89

221


919

901

    FDIC assessment


117

78


94

78


83

78


81

78


375

312

    Other real estate expense


12

(33)


37

19


31

29


18

27


98

42

    Amortization of intangibles


136

120


142

74


143

74


142

75


563

343

    Merger expenses


-

619


-

228


-

98


-

-


-

945

    Other


1,550

1,832


1,606

1,349


1,912

1,487


1,692

1,260


6,760

5,928

  Total non-interest expense


8,170

8,374


8,134

6,894


8,225

7,370


7,594

6,720


32,123

29,359

  Income before taxes


3,388

2,107


3,570

2,589


3,596

2,245


3,369

2,203


13,923

9,144

  Income tax expense 


702

1,605


737

696


595

581


660

447


2,694

3,329

  Net Income 


$      2,686

$        502


$     2,833

$     1,893


$     3,001

$     1,664


$     2,709

$     1,756


$   11,229

$     5,815

















  Per share data:
















     Net income, basic 


$        0.35

$       0.07


$      0.37

$       0.28


$      0.40

$      0.25


$      0.36

$      0.27


$      1.48

$      0.85

     Net income, diluted 


$        0.35

$       0.07


$      0.37

$       0.28


$      0.39

$      0.24


$      0.35

$      0.26


$      1.45

$      0.83









0








  Average number of shares outstanding - basic

7,598,531

7,366,508


7,592,140

6,666,168


7,573,252

6,634,462


7,569,038

6,687,942


7,581,054

6,849,419

  Average number of shares outstanding - diluted

7,732,100

7,521,198


7,724,410

6,807,936


7,726,479

6,803,370


7,712,534

6,813,460


7,730,580

6,998,282

  Shares outstanding period end


7,633,512

7,587,888


7,629,638

6,706,408


7,605,053

6,701,642


7,600,690

6,697,130


7,633,512

7,587,888

  Return on average assets


0.98%

0.20%


1.03%

0.83%


1.12%

0.73%


1.04%

0.78%


1.04%

0.62%

  Return on average common equity


9.76%

1.96%


10.42%

8.71%


11.35%

7.87%


10.40%

8.63%


10.48%

6.56%

  Return on average common tangible equity

11.53%

2.27%


12.36%

9.46%


13.51%

8.48%


12.41%

9.32%


12.44%

7.22%

  Net Interest Margin (non taxable equivalent)

3.74%

3.45%


3.55%

3.42%


3.67%

3.39%


3.61%

3.42%


3.64%

3.42%

  Net Interest Margin (taxable equivalent)


3.79%

3.54%


3.60%

3.52%


3.71%

3.49%


3.66%

3.52%


3.69%

3.52%

  Efficiency Ratio (1)


67.52%

78.98%


69.37%

69.64%


69.96%

73.99%


67.39%

74.31%


68.06%

75.12%

   '(1) Calculated by dividing non-interest expense by net interest income on tax equivalent basis and non interest income, net of securities gains or losses and loss on extinguishment of debt.



 

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities







































Three Months ended December 31, 2018


Three Months ended December 31, 2017



Average

Interest 

Yield/


Average

Interest 

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate

Assets









Earning assets









  Loans


$      713,135

$     8,816

4.90%


$     624,871

$       7,131

4.53%

  Securities:


260,953

1,666

2.53%


277,693

1,541

2.20%

  Other funds


21,633

113

2.07%


23,488

68

1.15%

        Total earning assets


995,721

10,595

4.22%


926,052

8,740

3.74%

Cash and due from banks


13,586




12,519



Premises and equipment


34,708




35,123



Intangible assets


16,707




14,243



Other assets


36,716




36,023



Allowance for loan losses


(6,230)




(5,670)



       Total assets


$   1,091,208




$  1,018,290












Liabilities









Interest-bearing liabilities









  Interest-bearing transaction accounts


195,070

149

0.30%


180,680

47

0.10%

  Money market accounts


187,981

291

0.61%


176,654

115

0.26%

  Savings deposits


107,259

36

0.13%


100,641

32

0.13%

  Time deposits


179,557

428

0.95%


188,050

290

0.61%

  Other borrowings


49,006

300

2.43%


41,406

198

1.90%

     Total interest-bearing liabilities


718,873

1,204

0.66%


687,431

682

0.39%

Demand deposits


254,063




220,647



Other liabilities


9,128




8,137



Shareholders' equity


109,144




102,075



   Total liabilities and shareholders' equity

$   1,091,208




$  1,018,290





















Net interest spread 




3.56%




3.35%

Net interest income/margin



$     9,391

3.74%



$       8,058

3.45%










Tax equivalent



$     9,509

3.79%



$       8,274

3.54%










Cost of funds including demand deposits



0.49%




0.30%

Cost of deposits including demand deposits


0.39%




0.22%


 

 

FIRST COMMUNITY CORPORATION

Yields on Average Earning Assets and Rates 

on Average Interest-Bearing Liabilities






























Year ended December 31, 2018


Year ended December 31, 2017



Average

Interest 

Yield/


Average

Interest 

Yield/



Balance

Earned/Paid

Rate


Balance

Earned/Paid

Rate

Assets









Earning assets








  Loans


$    686,438

$      32,790

4.78%


$    577,730

$      26,134

4.52%

  Securities:


271,621

6,521

2.40%


265,751

5,859

2.20%

  Other funds 


23,156

419

1.81%


15,972

163

1.02%

        Total earning assets

981,215

39,730

4.05%


859,453

32,156

3.74%

Cash and due from banks

13,446




11,571



Premises and equipment

34,905




31,850



Intangible assets

16,881




8,128



Other assets


36,299




32,160



Allowance for loan losses

(6,075)




(5,479)



       Total assets

$ 1,076,671




$    937,683



Liabilities









Interest-bearing liabilities








  Interest-bearing transaction accounts

192,420

443

0.23%


163,870

190

0.12%

  Money market accounts

184,413

869

0.47%


170,296

435

0.26%

  Savings deposits

106,752

143

0.13%


80,807

94

0.12%

  Time deposits

188,023

1,450

0.77%


176,358

1,106

0.63%

  Other borrowings

46,155

1,078

2.34%


51,171

937

1.83%

     Total interest-bearing liabilities

717,763

3,983

0.55%


642,502

2,762

0.43%

Demand deposits

243,530




199,169



Other liabilities

8,200




7,306



Shareholders' equity

107,178




88,706



   Total liabilities and shareholders' equity

$ 1,076,671




$    937,683












Net interest spread 



3.49%




3.31%

Net interest income/margin


$      35,747

3.64%



$      29,394

3.42%










Tax Equivalent



$      36,211

3.69%



$      30,252

3.52%










Cost of funds including demand deposits



0.41%




0.33%

Cost of deposits including demand deposits



0.32%




0.23%


 

 

The tables below provide a reconciliation of non‑GAAP measures to GAAP for the periods indicated:












December 31,



December 31,


Tangible book value per common share



2018



2017


Tangible common equity per common share (non‑GAAP)


$

12.56


$

11.66


Effect to adjust for intangible assets



2.18



2.27


Book value per common share (GAAP)


$

14.74


$

13.93


Tangible common shareholders' equity to tangible
   assets








Tangible common equity to tangible assets (non‑GAAP)



8.92

%


8.56

%

Effect to adjust for intangible assets



1.39

%


1.50

%

Common equity to assets (GAAP)



10.31

%


10.06

%

 

Return on average
tangible common equity

Three months ended

December 31,

Three months ended
September 30

Three months ended
June 30,

Three months ended
March 31,


Year Ended
December 31,


2018

2017

2018

2017

2018

2017

2018

2017


2018

2017

Return on average common
tangible equity (non-
GAAP)

11.53 %

2.27 %

12.36

%

9.46

%

13.51

%

8.48

%

12.41

%

9.32

%

12.44 %

7.22 %

Effect to adjust for
intangible assets

(1.77) %

(0.31) %

(1.94)

%

(0.75)

%

(2.16)

%

(0.61)

%

(2.01)

%

(0.69)

%

(1.96)%

(0.66)%

Return on average common
equity (GAAP)

9.76 %

1.96 %

10.42

%

8.71

%

11.35

%

7.87

%

10.40

%

8.63

%

10.48 %

6.56 %

 

Certain financial information presented above is determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures include "tangible book value at period end," "return on average tangible common equity" and "tangible common shareholders' equity to tangible assets." "Tangible book value at period end" is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding. "Tangible common shareholders' equity to tangible assets" is defined as total common equity reduced by recorded intangible assets divided by total assets reduced by recorded intangible assets. Our management believes that these non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare our operating results from period-to-period in a meaningful manner. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

 

Cision

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