Press Release

TowneBank Reports Full Year and Fourth Quarter Financial Results for 2016

Company Release - 1/26/2017 8:30 AM ET

SUFFOLK, Va., Jan. 26, 2017 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (the “Bank” or “Company”) (NASDAQ:TOWN) today reported financial results for the full year and the fourth quarter ended December 31, 2016.

Record Earnings for Full Year 2016

The Bank reported record annual earnings of $67.25 million for the year ended December 31, 2016, as compared to the $62.38 million reported in 2015, representing a 7.80% increase.  Fully diluted earnings per share were $1.18 per share compared to $1.22 per share for 2015.  Earnings per share were affected in 2016 by the issuance of 10.49 million new common shares in conjunction with the acquisition of Monarch Financial Holdings, Inc. (“Monarch”) on June 24, 2016.

Excluding after-tax acquisition-related expenses, core earnings for the year ended December 31, 2016 were $80.15 million (non-GAAP) compared to $63.24 million (non-GAAP) in 2015.  Fully diluted core earnings per share, excluding after-tax acquisition-related expenses, were $1.41 (non-GAAP measure) compared to $1.24 (non-GAAP measure) for 2015.

The Bank’s quarterly dividend was increased to $0.13 per share beginning in the second quarter of 2016 resulting in total dividends of $0.51 per share for 2016, an increase of 8.5% over 2015.  On an annualized basis, the current annual dividend rate is $0.52 per share.

“We are pleased to announce our 17th consecutive year of record annual earnings,” said G. Robert Aston, Jr., Chairman and Chief Executive Officer.  “We finished 2016 with revenue growth of $76.37 million, or 25.65%, over 2015, while producing a core return on average assets of 1.11% and a core return on average tangible equity of 11.73%.”

2016 Performance Highlights

  • Total revenues were $374.10 million, an increase of $76.37 million, or 25.65% from 2015
    - Taxable equivalent net interest margin was 3.50%, including accretion of 11 basis points, compared to 3.45%, including accretion of 9 basis points, for 2015
    - Residential mortgage banking income increased $24.58 million, or 71.85%
    - Insurance segment total revenue increased 14.67% to $54.51 million

  • Core net income, excluding after-tax acquisition-related expenses, was $80.15 million, an increase of 26.75% from 2015
     
  • Loans held for investment increased $1.29 billion, or 28.50%, from December 31, 2015 with organic growth of $479.69 million, or 10.61%, excluding $808.14 million of loans acquired in the Monarch merger
     
  • Total deposits were $6.04 billion, an increase of $1.12 billion, or 22.82%, from 2015.  The increase included $1.06 billion deposits acquired in the Monarch merger
    - Noninterest bearing deposits increased by 39.77%, to $1.95 billion, representing 32.27% of total deposits
    - Total cost of deposits remained steady at 0.40% at December 31, 2016 and 2015
     
  • Asset quality showed continued strength
    - Nonperforming assets declined to $37.60 million, or 0.47% of total assets compared to $43.09 million, or 0.68%, at December 31, 2015
    - Nonperforming loans were 0.23% of period end loans
    - Foreclosed property decreased to $21.01 million

  • Strategic acquisitions
    - On January 14, 2016, the Company acquired Oak Island Accommodations, Inc., an independent resort property management company in coastal North Carolina
    - On June 24, 2016, the Company completed the acquisition of Monarch and its wholly-owned bank subsidiary, Monarch Bank, headquartered in Chesapeake, Virginia

  • Banking centers
    - On September 15, 2016, the Company opened a new regional headquarters in the Gateway Plaza in downtown Richmond, Virginia
    - On December 9, 2016, the Company consolidated its banking office in the Port Warwick area of Newport News, Virginia into the banking office in the Oyster Point area of Newport News, Virginia

  • The Bank remained well-capitalized
    - Common equity tier 1 capital ratio of 11.75%
    - Tier 1 leverage capital ratio of 10.44%
    - Tier 1 risk-based capital ratio of 11.82%
    - Total risk-based capital ratio of 12.44%

Fourth Quarter 2016 Earnings Compared to Fourth Quarter 2015

Net income for the fourth quarter was $19.0 million, or $0.31 per diluted share, versus $12.47 million, or $0.24 per diluted share, in 2015, reflecting strong growth in net interest income as compared to the prior year period.

Performance Highlights

  • Total revenues were $101.67 million, a $30.26 million, or 42.37%, increase from fourth quarter 2015
    - Taxable equivalent net interest margin was 3.64%, including accretion of 11 basis points, compared to 3.36%, including accretion of 9 basis points. in fourth quarter 2015
    - Noninterest income increased 57.57% primarily due to merger-related growth in our residential mortgage banking business

Net Interest Income
Net interest income increased to $62.15 million, a $15.82 million, or 34.15%, increase from fourth quarter 2015.  The primary driver was the growth in average earning assets, which increased $1.50 billion, or 25.80%, while tax-equivalent net interest margin increased to 3.64% in the current quarter from 3.36% in fourth quarter 2015.  Accretion income added $2.34 million, or 15 basis points, to margin in the current quarter as compared to $1.22 million, or 9 basis points, in the fourth quarter of 2015.  The Company expects decreases in BOLI income and accretion income to negatively impact tax-equivalent net interest margin by approximately 7 basis points and 8 basis points, respectively. 

Noninterest Income
Noninterest income, excluding gains or losses on investment securities, was $39.51 million for the fourth quarter of 2016, an increase of $14.43 million, or 57.55%, from the fourth quarter of 2015.  Residential mortgage banking income increased $10.84 million, or 149.43%, from the fourth quarter of 2015 primarily due to higher production volumes resulting from the Monarch merger.  Mortgage production was $1.01 billion in fourth quarter 2016, which was $652.47 million higher than fourth quarter 2015 production of $353.52 million.  Insurance commissions and other title fees increased $0.83 million, or 9.18%, primarily due to increases in commercial lines and travel insurance commissions combined with increased title income.  Also contributing to the increase, other income was higher by $1.63 million primarily due to a rise in BOLI income of $0.87 million combined with an increase in loan service fees and income from Towne Investment Group.

Noninterest Expense
Noninterest expense increased by $20.09 million, or 38.09%, from the fourth quarter of 2015.  The primary driver was an increase of $12.24 million in salaries and benefits expense due to the addition of staff resulting from the Monarch acquisition, combined with the addition of staff resulting from the acquisition of a resort property management company in Oak Island, North Carolina ("Oak Island") in first quarter 2016.  Also contributing were increases in occupancy expenses of $1.73 million and furniture and equipment expenses of $0.99 million primarily related to mortgage facilities acquired in the Monarch acquisition.

Fourth Quarter 2016 Earnings Compared to Third Quarter 2016
Net income for the fourth quarter was $19.0 million, or $0.31 per diluted share, versus $24.18 million, or $0.39 per diluted share, in third quarter 2016, reflecting the seasonality in our Insurance and Realty segments.

Performance Highlights

  • Total revenues were $101.67 million compared to $109.43 million in the third quarter of 2016
    - Taxable equivalent net interest margin was 3.64%, including accretion of 11 basis points, compared to 3.57%, including accretion of 17 basis points, in the third quarter of 2016
    - Noninterest income, excluding gains on investment securities, decreased $7.31 million due to seasonality in our Insurance and Realty segments 

  • Total loans held for investment increased $155.58 million, or 2.75%, from September 30, 2016

Net Interest Income
On a linked quarter basis, net interest income decreased slightly by $0.45 million or 0.73%, in fourth quarter 2016 versus third quarter 2016, while tax-equivalent net interest margin was 3.64% versus 3.57% for the third quarter of 2016.  The decrease in net interest income was primarily due to seasonally lower loans held for sale average balances combined with an increase in FHLB borrowings and lower accretion income.  Accretion income added $2.34 million, or 15 basis points, to margin in the current quarter, as compared to $2.63 million, or 17 basis points, in the linked quarter.

Noninterest Income
In comparison to the third quarter of 2016, noninterest income, excluding gains or losses on investment securities, decreased $7.31 million, or 15.61%.  Residential mortgage banking income decreased by $3.33 million, or 15.56%, from the third quarter of 2016 primarily due to a seasonal decrease in mortgage production of $240.70 million, from $1.25 billion in third quarter 2016 to $1.01 billion in fourth quarter 2016.  A seasonal decrease in policy renewals led to the decrease in net insurance commissions, while decreases in real estate brokerage and property management income from the linked quarter also reflected the seasonal nature of those businesses.

Noninterest Expense
Noninterest expense increased by $1.90 million, or 2.68%, from the third quarter of 2016.  The primary driver was an increase in salaries and benefits expenses of $2.57 million, partially offset by a decrease in acquisition-related expenses of $1.68 million, which was primarily due to a fourth quarter 2016 change in estimate of previously accrued expenses related to the disposal of acquired facilities.

Noninterest Income      % Change
 Q4 Q4 Q3 Q4 16 vs. Q4 16 vs.
(dollars in thousands)2016 2015 2016 Q4 15 Q3 16
Residential mortgage banking income, net$18,096  $7,255  $21,430  149.43% (15.56)%
Insurance commissions and other title fees and income, net9,823  8,997  11,258  9.18% (12.75)%
Real estate brokerage and property management, net2,925  2,438  6,647  19.98% (56.00)%
Service charges on deposit accounts2,535  2,254  2,552  12.47% (0.67)%
Credit card merchant fees, net1,135  767  1,365  47.98% (16.85)%
Other income4,998  3,368  3,569  48.40% 40.04%
Subtotal before gain on investment securities39,512  25,079  46,821  57.55% (15.61)%
Net gain on investment securities6      N/M N/M
Total noninterest income$39,518  $25,079  $46,821  57.57% (15.60)%


Noninterest Expense      % Change
 Q4 Q4 Q3 Q4 16 vs.  Q4 16 vs.
(dollars in thousands)2016 2015 2016 Q4 15 Q3 16
Salaries and benefits$43,071  $30,826  $40,497  39.72% 6.36%
Occupancy expense6,885  5,156  6,656  33.53% 3.44%
Furniture and equipment3,378  2,390  3,199  41.34% 5.60%
Acquisition-related expenses(707) 285  969  (348.07)% (172.96)%
Other expenses20,207  14,086  19,612  43.45% 3.03%
Total noninterest expense$72,834  $52,743  $70,933  38.09% 2.68%
          

Segment Results

        $ Change
(in thousands) Q4 Q4 Q3 Q4 16 vs. Q4 16 vs.
Segment Net Income (Loss) 2016 2015 2016 Q4 15 Q3 16
Banking $17,931  $12,219  $18,276  $5,712  $(345)
Realty 673  6  4,815  $667  $(4,142)
Insurance 392  241  1,085  $151  $(693)
Total net income $18,996  $12,466  $24,176  $6,530  $(5,180)

Fourth Quarter 2016 Compared to Fourth Quarter 2015

Banking
Net income for the three months ended December 31, 2016 for the Banking segment was $17.93 million, increasing $5.71 million, or 46.75%, from comparative 2015, as net interest income climbed by $13.77 million due to the increase in earning assets from the Monarch merger.  Also contributing to the variance was an increase in noninterest income of $2.33 million.  These factors were partially offset by increases in the provision for loan losses and noninterest expenses.

Realty
For the three months ended December 31, 2016, the Realty segment increased net income to $0.67 million from $0.01 million for fourth quarter 2015.  The improvement was driven by an increase in residential mortgage banking income of $10.93 million, or 146.81%, due to higher production volumes resulting from the Monarch merger and net interest income increased by $2.05 million as higher production volume led to higher average mortgage loans held for sale.  These improvements were partially offset by an increase in operational expenses related to the merger with Monarch.

Insurance
The Insurance segment had net income of $0.39 million for the three months ended December 31, 2016, an increase of $0.15 million compared to fourth quarter 2015.  The increase in net income was driven by higher property and casualty insurance commission income combined with a decrease in salaries and benefits expenses.

Fourth Quarter 2016 Compared to Third Quarter 2016

Banking
Earnings decreased slightly by $0.35 million, or 1.89% from the third quarter of 2016 as increases in net interest income and noninterest income were overcome by higher personnel costs of $3.26 million, primarily related to performance based staff incentives and employee benefits expenses.  Also, loan growth in the quarter led to an increase of $0.11 million in the provision for loan losses.

Realty
Net income in the Realty segment decreased by $4.14 million from the linked quarter ended September 30, 2016, due to due to historically seasonal decreases in the Bank's mortgage, real estate brokerage, and resort property management businesses.

Insurance
Net income decreased $0.69 million from the third quarter of 2016 due to the historically seasonal decrease in fourth quarter policy renewals.  The seasonal decrease in revenue was partially offset by a decline in operating expenses during the current quarter.

Balance Sheet

At December 31, 2016, total Bank assets reached $7.97 billion, an increase of $1.68 billion, or 26.64%, over December 31, 2015.

Loans

       % Change
 Q4 Q4 Q3 Q4 16 vs. Q4 16 vs.
(dollars in thousands)2016 2015 2016 Q4 15 Q3 16
Construction and land development$826,027  $598,875  $820,453  37.93% 0.68%
Commercial real estate - investment related properties1,322,466  1,004,393  1,283,619  31.67% 3.03%
Commercial real estate - owner occupied928,846  780,000  905,870  19.08% 2.54%
Multifamily real estate222,791  167,371  206,623  33.11% 7.82%
1-4 family residential real estate1,215,823  973,331  1,208,001  24.91% 0.65%
Commercial and industrial business loans1,089,539  857,036  1,033,797  27.13% 5.39%
Consumer loans and other201,729  138,387  193,279  45.77% 4.37%
Total$5,807,221  $4,519,393  $5,651,642  28.50% 2.75%

The Bank’s loan portfolio ended the period at $5.81 billion representing an increase of 28.50%, or $1.29 billion, from December 31, 2015, and an increase of $155.58 million, or 2.75%, from September 30, 2016.  In addition to organic growth, the increase in loans from the prior year is related to loans acquired in the Monarch merger on June 24, 2016.

Deposits

       % Change
 Q4 Q4 Q3 Q4 16 vs. Q4 16 vs.
(dollars in thousands)2016 2015 2016 Q4 15 Q3 16
Noninterest-bearing demand$1,947,312  $1,393,264  $1,974,395  39.77% (1.37)%
Interest-bearing:         
Demand and money market accounts2,263,894  1,824,226  2,207,962  24.10% 2.53%
Savings319,611  300,408  315,477  6.39% 1.31%
Certificates of deposits1,504,380  1,396,129  1,649,113  7.75% (8.78)%
Total$6,035,197  $4,914,027  $6,146,947  22.82% (1.82)%

The Bank continued to experience solid deposit growth with total deposits increasing to $6.04 billion, up $1.12 billion, or 22.82%, from December 31, 2015.  The increase was primarily due to the deposits acquired in the Monarch merger.  The Bank saw continued growth in noninterest-bearing demand deposits, which ended the year at $1.95 billion, a 39.77% increase from the prior year.  Noninterest-bearing deposits represented 32.27% of total deposits at December 31, 2016.

Capital Ratios

  Q4 Q4 Q3
  2016 2015 2016
Common Equity Tier 1 11.75% 12.59% 11.74%
Tier 1 11.82% 12.70% 11.81%
Total 12.44% 13.44% 12.42%
Tier 1 Leverage Ratio 10.44% 10.67% 10.18%

The Bank’s total equity at December 31, 2016 rose to $1.09 billion, an increase of $266.36 million, or 32.48%, from December 31, 2015.  Total risk-based capital remained strong as  common equity Tier 1, Tier 1 capital, total risk-based capital, and Tier 1 leverage capital ratios were 11.75%, 11.82%, 12.44%, 10.44%, respectively.  All ratios exceed the current regulatory standards for well capitalized status.

Asset Quality

          
(in thousands)12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
          
Nonperforming loans$13,099  $11,337  $10,580  $7,944  $8,670 
Former bank premises3,494         
Foreclosed property21,011  22,884  25,707  29,740  34,420 
          
Total nonperforming assets$37,604  $34,221  $36,287  $37,684  $43,090 
          
Quarterly net loans charged off (recovered)$485  $649  $241  $340  $(156)
          
Year-to-date net loans charged off$1,715  $1,230  $581  $340  $585 


        Change
  Q4 Q4 Q3 Q4 2016 vs. Q4 2016 vs.
(dollars in thousands) 2016 2015 2016 Q4 2015 Q3 2016
Total loans 90 days past due and still accruing $76  $424  $  $(348) $76 
Total loans 30-89 days past due $10,459  $7,477  $6,707  $2,982  $3,752 
Allowance for loan losses $42,001  $38,359  $40,655  $3,642  $1,346 
Total performing TDRs $31,351  $29,114  $28,345  $2,237  $3,006 
           
Nonperforming loans to period end loans 0.23% 0.19% 0.20% 0.04  0.03 
Nonperforming assets to period end assets 0.47% 0.68% 0.44% (0.21) 0.03 
Allowance for loan losses to period end loans 0.72% 0.85% 0.72% (0.13)  
Allowance for loan losses (originated) to originated period end loans 0.87% 0.94% 0.91% (0.07) (0.04)
Net charge-offs (recoveries) to average loans (annualized) 0.03% (0.01)% 0.05% 0.04  (0.02)
Ratio of allowance for loan losses to nonperforming loans 3.21x 4.42x 3.59x (1.21)x (.38)x

Continued strength in credit quality contributed to the Bank's financial results as net charge-offs remained low at $0.49 million in the fourth quarter of 2016 compared to net recoveries of $0.16 million in the fourth quarter of 2015 and net charge-offs of $0.65 million in the linked quarter.  Total nonperforming assets were $37.60 million, or 0.47%, of Bank assets at December 31, 2016, as compared to $43.09 million, or 0.68%, at December 31, 2015, and $34.22 million, or 0.44%, at September 30, 2016.  The allowance for loan losses was $42.00 million, increased from $38.36 million at December 31, 2015 and $40.66 million at September 30, 2016.

About TowneBank:
As one of the top community banks in Virginia and North Carolina, TowneBank operates 37 banking offices serving Chesapeake, Chesterfield County, Glen Allen, Hampton, James City County, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach, Williamsburg, and York County in Virginia, along with Moyock, Grandy, Camden County, Southern Shores, Corolla and Nags Head in North Carolina. Towne also offers a full range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Beach Properties of Hilton Head. Local decision-making is a hallmark of its hometown banking strategy that is delivered through the leadership of each group’s President and Board of Directors.  With total assets of $7.97 billion as of December 31, 2016, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains financial information determined by methods other than in accordance with GAAP.  The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance.  These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature.  Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses.  These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release.

Forward-Looking Statements:
Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions  TowneBank intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions.  TowneBank’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain.  Factors which could have a material effect on the operations and future prospects of TowneBank include, but are not limited to changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in TowneBank’s market areas; TowneBank’s implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; and changes in accounting principles, policies and guidelines; and other risk factors detailed from time to time in filings made by TowneBank with the Federal Deposit Insurance Corporation.  TowneBank undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.###


TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
 
      Increase/ % Increase/
Three Months Ended December 31,2016 2015 (Decrease) (Decrease)
         
Results of Operations:       
 Net interest income$62,151  $46,331  $15,820  34.15%
 Noninterest income (1)39,512  25,079  14,433  57.55%
 Gain on investment securities6    6  N/M
 Total Revenue101,669  71,410  30,259  42.37%
 Acquisition-related expenses(707) 285  (992) (348.07)%
 Noninterest expenses, excluding acquisition-related expenses73,541  52,458  21,083  40.19%
 Provision for loan losses1,831  852  979  114.91%
 Income before income tax and noncontrolling interest27,004  17,815  9,189  51.58%
 Provision for income tax expense7,160  4,846  2,314  47.75%
 Net income19,844  12,969  6,875  53.01%
 Net income attributable to noncontrolling interest(848) (503) (345) 68.59%
 Net income attributable to TowneBank18,996  12,466  6,530  52.38%
 Net income available to common shareholders18,996  12,466  6,530  52.38%
 Net income per common share - basic0.31  0.24  0.07  29.17%
 Net income per common share - diluted0.31  0.24  0.07  29.17%
Period End Data:       
 Total assets$7,973,915  $6,296,574  $1,677,341  26.64%
 Total assets - tangible7,671,149  6,115,579  1,555,570  25.44%
 Earning assets (2)7,346,961  5,827,888  1,519,073  26.07%
 Loans (net of unearned income)5,807,221  4,519,393  1,287,828  28.50%
 Allowance for loan losses42,001  38,359  3,642  9.49%
 Goodwill and other intangibles302,766  180,995  121,771  67.28%
 Nonperforming assets37,605  43,091  (5,486) (12.73)%
 Noninterest bearing deposits1,947,312  1,393,264  554,048  39.77%
 Interest bearing deposits4,087,885  3,520,763  567,122  16.11%
 Total deposits6,035,197  4,914,027  1,121,170  22.82%
 Total equity1,086,558  820,194  266,364  32.48%
 Total equity - tangible783,792  639,199  144,593  22.62%
 Common equity1,075,102  810,921  264,181  32.58%
 Common equity - tangible772,337  629,925  142,412  22.61%
 Book value per common share17.20  15.71  1.49  9.48%
 Book value per common share - tangible12.36  12.21  0.15  1.23%
Daily Average Balances:       
 Total assets$7,965,438  $6,305,571  $1,659,867  26.32%
 Total assets - tangible7,661,845  6,120,799  1,541,046  25.18%
 Earning assets (2)7,297,299  5,800,907  1,496,392  25.80%
 Loans (net of unearned income), excluding nonaccrual loans5,705,832  4,426,387  1,279,445  28.90%
 Allowance for loan losses41,188  37,918  3,270  8.62%
 Goodwill and other intangibles303,593  184,773  118,820  64.31%
 Noninterest bearing deposits1,961,902  1,420,047  541,855  38.16%
 Interest bearing deposits4,137,806  3,458,597  679,209  19.64%
 Total deposits6,099,708  4,878,643  1,221,065  25.03%
 Total equity1,087,382  823,627  263,755  32.02%
 Total equity - tangible783,789  638,855  144,934  22.69%
 Common equity1,076,277  814,894  261,383  32.08%
 Common equity - tangible772,683  630,121  142,562  22.62%
Key Ratios:       
 Return on average assets0.95% 0.78% 0.17% 21.79%
 Return on average assets - tangible1.05% 0.85% 0.20% 23.53%
 Return on average equity6.95% 6.00% 0.95% 15.83%
 Return on average equity - tangible10.27% 8.11% 2.16% 26.63%
 Return on average common equity7.02% 6.07% 0.95% 15.65%
 Return on average common equity - tangible10.42% 8.22% 2.20% 26.76%
 Net interest margin-fully tax equivalent (2)(3)3.64% 3.36% 0.28% 8.33%
 Net interest margin (2)3.52% 3.27% 0.25% 7.65%
 Average earning assets/total average assets91.61% 92.07% (0.46)% (0.50)%
 Average loans/average deposits93.54% 90.73% 2.81% 3.10%
 Average noninterest deposits/total average deposits32.16% 29.11% 3.05% 10.48%
 Allowance for loan losses/period end loans0.72% 0.85% (0.13)% (15.29)%
 Nonperforming assets to period end assets0.47% 0.68% (0.21)% (30.88)%
 Period end equity/period end total assets13.63% 13.03% 0.60% 4.60%
 Efficiency ratio (1)71.64% 73.86% (2.22)% (3.01)%
         
(1) Excludes gain on investment securities
(2) Includes bank-owned life insurance
(3) Presented on a tax-equivalent basis