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WKN: A0CA4B | ISIN: US89214P1093 | Ticker-Symbol: 3T8
Frankfurt
28.03.24
08:20 Uhr
25,400 Euro
0,000
0,00 %
1-Jahres-Chart
TOWNEBANK Chart 1 Jahr
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TOWNEBANK 5-Tage-Chart
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25,80026,20018:26
GlobeNewswire (Europe)
447 Leser
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(2)

TowneBank Reports First Quarter 2023 Earnings

SUFFOLK, Va., April 27, 2023 (GLOBE NEWSWIRE) -- TowneBank ("Towne") (NASDAQ: TOWN) today reported earnings for the quarter ended March 31, 2023 of $38.33 million, or $0.52 per diluted share, compared to $45.59 million, or $0.63 per diluted share, for the quarter ended March 31, 2022. Excluding acquisition-related items, core earnings (non-GAAP) for the quarter ended March 31, 2023 were $46.30 million, or $0.62 per diluted share, compared to $45.63 million, or $0.63 per diluted share, for the quarter ended March 31, 2022.

"The quarter presented unexpected industry challenges which highlighted our prudent approach to conservative balance sheet management and growth. Our capital, liquidity and core funding has been a foundational pillar of our Company since inception and remains strong in the current environment. We expect our proven business model, which emphasizes diverse revenues and deep relationships, will provide opportunities to position Towne to successfully navigate volatile market conditions," said G. Robert Aston, Jr., Executive Chairman.

Highlights for First Quarter 2023:

  • Total revenues were $184.14 million, an increase of $18.73 million, or 11.32%, compared to first quarter 2022. An increase in net interest income of $24.17 million was partially offset by a $5.44 million decline in noninterest income, primarily related to the decline in residential mortgage banking income.
  • Pre-provision, pre-tax, net revenues (non-GAAP) were $59.60 million, an increase of $4.23 million, or 7.65%, compared to the prior year quarter.
  • Towne successfully completed the acquisition of Farmers Bankshares, Inc. and its wholly owned subsidiary Farmers Bank ("Farmers"), in January 2023. Included in that acquisition were $277.89 million in loans, $244.89 million in securities, and $514.57 million in deposits.
  • Loans held for investment were $11.17 billion, an increase of $1.26 billion, or 12.76%, compared to March 31, 2022, and $379.18 million, or 3.51%, compared to December 31, 2022. Excluding loans acquired in the quarter, total loans increased $0.99 billion, or 9.96%, compared to prior year and $101.29 million, or 3.81% on an annualized basis, compared to the linked quarter.
  • Total deposits were $13.60 billion, a marginal decrease of $173.67 million, or 1.26%, compared to prior year but an increase of $303.91 million, or 2.29%, from December 31, 2022. Excluding $514.57 million in acquired deposits, total deposits decreased $688.24 million, or 5.00%, compared to prior year and $210.66 million, or 6.43% on an annualized basis compare to the linked quarter.
  • Noninterest bearing deposits decreased 8.37%, to $5.07 billion, compared to prior year and represented 37.28% of total deposits. Compared to the linked quarter, noninterest bearing deposits decreased 3.72%.
  • Annualized return on common shareholders' equity was 8.05% compared to 9.81% in first quarter 2022. Annualized return on average tangible common shareholders' equity (non-GAAP) was 11.83% compared to 14.08% in first quarter 2022.
  • Net interest margin was 3.36% for the quarter and taxable equivalent net interest margin (non-GAAP) was 3.39% compared to the prior year quarter net interest margin of 2.67% and taxable equivalent net interest margin (non-GAAP) of 2.69%.
  • Effective tax rate of 20.03% in the quarter compared to 19.77% in first quarter 2022 and 19.90% in the linked quarter.

"We were pleased to close the Farmers Bank partnership during the quarter and recently completed the systems conversion. Additionally, the growth in tangible book value during the quarter evidenced our well-structured approach to this transaction. Tougher economic conditions could present additional opportunities for us to grow both organically and through acquisition across our various lines of business. Our commitment to being a strong community asset in the markets we serve is unwavering, especially in challenging environments," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

  • Net interest income was $123.38 million compared to $99.20 million for the quarter ended March 31, 2022. The increase was driven by higher earning asset yields and increases in loan and investment securities balances, partially offset by increased deposit costs.
  • Tax-equivalent net interest margin (non-GAAP) was 3.39%, including purchase accounting accretion of 3 basis points, compared to 2.69%, including purchase accounting accretion of 6 basis points for first quarter 2022.
  • On an average basis, loans held for investment, with a yield of 4.88%, represented 74.61% of earning assets at March 31, 2023 compared to a yield of 4.01% and 64.26% of earning assets in the first quarter of 2022.
  • Total cost of deposits increased to 1.02% from 0.15% for the quarter ended March 31, 2022. Interest expense on deposits increased $29.04 million, or 593.38%, over the prior year quarter driven, primarily, by the increase in rate. Management expects continued pressure on the cost of deposits.
  • Rising funding costs continued to negatively impact profitability in our residential mortgage banking business.
  • Average interest-earning assets totaled $14.87 billion at March 31, 2023 compared to $15.05 billion at March 31, 2022, a decrease of 1.14%.
  • Average interest-bearing liabilities totaled $8.91 billion, an increase of $352.08 million, or 4.11% from prior year. Average short term FHLB borrowings were $263.33 million during the quarter.

Quarterly Provision for Credit Losses:

  • The quarterly provision for credit losses was an expense of $11.67 million compared to a provision benefit of $1.45 million one year ago and an expense of $6.07 million in the linked quarter. The provision includes an initial provision for credit losses of $4.01 million related to loans and commitments acquired in the Farmers transaction.
  • The allowance for credit losses on loans in first quarter 2023, compared to the linked quarter, increased $9.19 million, $5.05 million of which resulted from the January 2023 acquisition of Farmers. In addition to the initial loan provision discussed above, acquisition accounting for the purchased loan portfolio included an increase in our allowance of $1.38 million on acquired loans with purchase credit deteriorated loan marks. Additional allowance increases were driven by loan growth, changes in our portfolio composition and updates in the macroeconomic forecast scenarios.
  • Net loan charge-offs were $3.87 million, driven primarily by the charge-off of a single credit relationship, compared to $0.13 million one year prior and $2.90 million in the linked quarter. The ratio of net charge-offs to average loans on an annualized basis was 0.14% in first quarter 2023, 0.01% in first quarter 2022, and 0.11% in the linked quarter.
  • The allowance for credit losses on loans represented 1.07% of total loans at March 31, 2023, 1.05% at March 31, 2022, and 1.03% on December 31, 2022. The allowance for credit losses on loans was 12.87 times nonperforming loans compared to 21.52 times at March 31, 2022 and 17.67 times at December 31, 2022.

Quarterly Noninterest Income:

  • Total noninterest income was $60.77 million compared to $66.21 million in 2022, a decrease of $5.44 million, or 8.22%.
  • Residential mortgage banking income was $9.37 million compared to $14.64 million in first quarter 2022. Loan volume decreased to $416.22 million in first quarter 2023 from $819.99 million in 2022. The prolonged increase in mortgage rates has resulted in refinance activities dropping to 5% of total mortgage production volume, the lowest level since second quarter 2018. Residential purchase activity comprised 94.99% of production volume in the first quarter of 2023 compared to 77.93% in the prior year quarter.
  • Gross margins on residential mortgages increased 10 basis points from 3.01% in first quarter 2022 to 3.11% in the current quarter.
  • Total net insurance commissions increased $3.75 million, or 19.66%, to $22.82 million in first quarter 2023 compared to 2022. This resulted from increases in property and casualty commissions, which were driven by organic growth, higher contingency income, and commissions from two recent acquisitions.
  • Property management fee revenue decreased 9.40%, or $1.61 million, to $15.54 million in first quarter 2023 compared to 2022. Reservation income is down compared to the prior year due to decreased bookings at our property management locations.
  • Real estate brokerage income declined driven by a 29.04% decline in sale volume. The combination of higher mortgage loan rates and continued low home sales inventories impacted income in first quarter 2023.

Quarterly Noninterest Expense:

  • Total noninterest expense was $124.40 million compared to $109.38 million in 2022, an increase of $15.02 million, or 13.73%. Increases in salaries and employee benefits of $5.46 million, acquisition-related expenses of $5.91 million, software expense of $1.13 million, and charitable contributions of $1.03 million were the primary sources of the increase.
  • Salaries and benefits expense increases were driven by annual base salary adjustments that went into effect July 2022 and an increase in the year-over-year number of employees, primarily related to the Farmers acquisition.
  • Software expense increased due to a number of ongoing projects related to recent acquisitions, our loan portfolio and mortgage.

Consolidated Balance Sheet Highlights:

  • Total assets were $16.73 billion for the quarter ended March 31, 2023, an $0.89 billion increase compared to $15.85 billion at December 31, 2022. Total assets increased $63.89 million, or 0.38%, from $16.67 billion at March 31, 2022.
  • Loans held for investment increased $1.26 billion, or 12.76%, compared to prior year and $379.18 million, or 3.51%, compared to the linked quarter. Excluding loans acquired in the quarter, total loans increased $0.99 billion, or 9.96%, compared to prior year and $101.29 million, or 3.81% on an annualized basis, compared to the linked quarter.
  • Mortgage loans held for sale decreased $77.46 million, or 33.01%, compared to prior year but increased $54.82 million, or 53.57%, compared to the linked quarter.
  • Excluding $0.51 billion in acquired deposits, total deposits decreased $0.69 billion, or 5.00%, compared to prior year and $0.21 billion, or 1.58%, compared to the linked quarter.
  • Total borrowings increased $178.31 million, or 28.40%, over prior year and $488.24 million, or 153.53%, compared to the linked quarter. FHLB advances increased $474.82 million in the quarter.

Investment Securities:

  • Total investment securities were $2.67 billion compared to $2.41 billion at December 31, 2022 and $2.30 billion at March 31, 2022. The weighted average duration of the portfolio at March 31, 2023 was 3.6 years. The carrying value of the available for sale debt securities portfolio included net unrealized losses of $165.71 million at March 31, 2023, compared to $191.05 million at December 31, 2022 and $70.32 million at March 31, 2022, related to rising rates rather than credit quality issues.

Loans and Asset Quality:

  • Total loans held for investment were $11.17 billion at March 31, 2023 compared to $10.79 billion at December 31, 2022 and $9.91 billion at March 31, 2022.
  • Nonperforming assets were $9.89 million, or 0.06% of total assets, compared to $5.39 million, or 0.03%, at March 31, 2022.
  • Nonperforming loans were 0.08% of period end loans compared to 0.05% at March 31, 2022.
  • Foreclosed property increased marginally to $563.85 thousand from $560.15 thousand at March 31, 2022.

Deposits and Borrowings:

  • Total deposits were $13.60 billion compared to $13.29 billion at December 31, 2022 and $13.77 billion at March 31, 2022.
  • Total loans held for investment to deposits were 82.17% compared to 81.20% at December 31, 2022 and 71.95% at March 31, 2022.
  • Noninterest-bearing deposits were 37.28% of total deposits at March 31, 2023 compared to 39.61% at December 31, 2022 and 40.17% at March 31, 2022.
  • Total borrowings were $0.81 billion compared to $0.32 billion at December 31, 2022 and $0.63 billion at March 31, 2022.

Capital:

  • Common equity tier 1 capital ratio of 11.68%.
  • Tier 1 leverage capital ratio of 9.86%.
  • Tier 1 risk-based capital ratio of 11.80%.
  • Total risk-based capital ratio of 14.55%.
  • Book value per common share was $26.40 compared to $25.73 at December 31, 2022 and $25.61 at March 31, 2022.
  • Tangible book value per common share (non-GAAP) was $19.04 compared to $18.84 at December 31, 2022 and $18.67 at March 31, 2022.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

TowneBank operates over 45 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina - serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $16.73 billion as of March 31, 2023, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, pre-provision, pre-tax net revenues, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank's core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; unusual and infrequently occurring events, such as weather-related or natural disasters, acts of war or terrorism, or public health events (such as the COVID-19 pandemic); changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the "Risk Factors" in TowneBank's Annual Report on Form 10-K for the year ended December 31, 2022 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2023 2022 2022 2022 2022
Income and Performance Ratios:
Total revenue$184,144 $175,307 $179,236 $166,980 $165,412
Net income 38,478 46,494 50,671 47,054 46,250
Net income available to common shareholders 38,333 46,685 50,169 46,547 45,586
Pre-provision, pre-tax, net revenues (non-GAAP) 59,602 64,357 66,700 57,748 55,369
Net income per common share - diluted 0.52 0.64 0.69 0.64 0.63
Book value per common share 26.40 25.73 25.08 25.48 25.61
Book value per common share - tangible (non-GAAP) 19.04 18.84 18.17 18.58 18.67
Return on average assets 0.95% 1.16% 1.22% 1.13% 1.13%
Return on average assets - tangible (non-GAAP) 1.05% 1.25% 1.31% 1.22% 1.23%
Return on average equity 7.99% 9.98% 10.60% 9.94% 9.73%
Return on average equity - tangible (non-GAAP) 11.71% 14.26% 15.08% 14.20% 13.91%
Return on average common equity 8.05% 10.07% 10.69% 10.03% 9.81%
Return on average common equity - tangible (non-GAAP) 11.83% 14.44% 15.27% 14.37% 14.08%
Noninterest income as a percentage of total revenue 33.00% 26.54% 30.80% 34.52% 40.03%
Regulatory Capital Ratios (1):
Common equity tier 1 11.68% 11.92% 11.92% 11.83% 12.16%
Tier 1 11.80% 12.04% 12.05% 11.97% 12.31%
Total 14.55% 14.80% 14.80% 16.76% 17.34%
Tier 1 leverage ratio 9.86% 9.87% 9.52% 9.19% 9.16%
Asset Quality:
Allowance for credit losses on loans to nonperforming loans12.87x 17.67x 20.48x 18.94x 21.52x
Allowance for credit losses on loans to period end loans 1.07% 1.03% 1.02% 1.00% 1.05%
Nonperforming loans to period end loans 0.08% 0.06% 0.05% 0.05% 0.05%
Nonperforming assets to period end assets 0.06% 0.04% 0.03% 0.04% 0.03%
Net charge-offs (recoveries) to average loans (annualized) 0.14% 0.11% (0.01)% -% 0.01%
Net charge-offs (recoveries)$3,874 $2,904 $(187) $(80) $126
Nonperforming loans$9,322 $6,273 $5,250 $5,493 $4,825
Foreclosed property 564 560 186 563 560
Total nonperforming assets$9,886 $6,833 $5,436 $6,056 $5,385
Loans past due 90 days and still accruing interest$206 $324 $725 $232 $40
Allowance for credit losses on loans$120,002 $110,816 $107,497 $104,019 $103,833
Mortgage Banking:
Loans originated, mortgage$280,401 $299,298 $458,254 $588,529 $583,008
Loans originated, joint venture 135,818 157,511 234,443 249,279 236,980
Total loans originated$416,219 $456,809 $692,697 $837,808 $819,988
Number of loans originated 1,249 1,355 1,983 2,282 2,237
Number of originators 194 186 194 201 207
Purchase % 94.99% 95.08% 93.20% 92.27% 77.93%
Loans sold$346,288 $483,254 $701,908 $759,073 $853,808
Rate lock asset$1,435 $482 $859 $1,935 $3,009
Gross realized gain on sales and fees as a % of loans originated 3.11% 2.93% 3.02% 2.92% 3.01%
Other Ratios:
Net interest margin 3.36% 3.51% 3.28% 2.88% 2.67%
Net interest margin-fully tax equivalent (non-GAAP) 3.39% 3.53% 3.31% 2.89% 2.69%
Average earning assets/total average assets 90.98% 91.51% 91.92% 92.22% 92.24%
Average loans/average deposits 82.40% 80.14% 76.82% 74.57% 71.61%
Average noninterest deposits/total average deposits 38.35% 41.07% 41.77% 40.56% 40.49%
Period end equity/period end total assets 11.89% 11.92% 11.56% 11.09% 11.28%
Efficiency ratio (non-GAAP) 65.64% 61.99% 61.03% 63.51% 64.42%
(1) Current reporting period regulatory capital ratios are preliminary.


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
Investment Securities % Change
Q1 Q1 Q4 Q1 23 vs. Q1 23 vs.
Available-for-sale securities, at fair value 2023 2022 2022 Q1 22 Q4 22
U.S. agency securities$334,211 $338,490 $293,894 (1.26)% 13.72%
U.S. Treasury notes 27,272 970 26,693 2,711.55% 2.17%
Municipal securities 508,439 400,200 431,299 27.05% 17.89%
Trust preferred and other corporate securities 76,965 85,792 78,436 (10.29)% (1.88)%
Mortgage-backed securities issued by GSE 1,132,746 1,022,169 1,011,666 10.82% 11.97%
Allowance for credit losses (1,150) (1,081) (1,086) 6.38% 5.89%
Total$2,078,483 $1,846,540 $1,840,902 12.56% 12.91%
Gross unrealized gains (losses) reflected in financial statements
Total gross unrealized gains$2,218 $3,443 $1,111 (35.58)% 99.64%
Total gross unrealized losses (167,929) (73,758) (192,163) 127.68% (12.61)%
Net unrealized gains (losses) and other adjustments on AFS securities$(165,711) $(70,315) $(191,052) 135.67% (13.26)%
Held-to-maturity securities, at amortized cost
U.S. agency securities$101,281 $83,004 $101,092 22.02% 0.19%
U.S. Treasury notes 433,584 336,193 433,866 28.97% (0.06)%
Municipal securities 5,203 5,116 5,181 1.70% 0.42%
Trust preferred corporate securities 2,210 2,260 2,223 (2.21)% (0.58)%
Mortgage-backed securities issued by GSE 5,948 6,811 6,113 (12.67)% (2.70)%
Allowance for credit losses (88) (92) (83) (4.35)% 6.02%
Total$548,138 $433,292 $548,392 26.51% (0.05)%
Total gross unrealized gains$392 $714 $320 (45.10)% 22.50%
Total gross unrealized losses (24,018) (11,915) (29,802) 101.58% (19.41)%
Net unrealized gains (losses) in HTM securities$(23,626) $(11,201) $(29,482) 110.93% (19.86)%
Total unrealized (losses) gains on AFS and HTM securities$(189,337) $(81,516) $(220,534) 132.27% (14.15)%
% Change
Loans Held For InvestmentQ1 Q1 Q4 Q1 23 vs. Q1 23 vs.
2023 2022 2022 Q1 22 Q4 22
Real estate - construction and development$1,473,034 $1,236,294 $1,428,376 19.15% 3.13%
Commercial real estate - owner occupied 1,675,119 1,561,117 1,580,099 7.30% 6.01%
Commercial real estate - non owner occupied 2,908,791 2,697,929 2,830,620 7.82% 2.76%
Real estate - multifamily 505,237 339,220 496,190 48.94% 1.82%
Residential 1-4 family 1,734,698 1,392,052 1,634,062 24.61% 6.16%
HELOC 387,967 376,480 395,526 3.05% (1.91)%
Commercial and industrial business (C&I) 1,297,707 1,212,973 1,256,697 6.99% 3.26%
Government 510,494 518,839 512,265 (1.61)% (0.35)%
Indirect 582,306 485,620 568,190 19.91% 2.48%
Consumer loans and other 98,432 88,784 92,577 10.87% 6.32%
Total$11,173,785 $9,909,308 $10,794,602 12.76% 3.51%
% Change
DepositsQ1 Q1 Q4 Q1 23 vs. Q1 23 vs.
2023 2022 2022 Q1 22 Q4 22
Noninterest-bearing demand$5,069,363 $5,532,337 $5,265,186 (8.37)% (3.72)%
Interest-bearing:
Demand and money market accounts 6,284,184 6,432,005 6,185,075 (2.30)% 1.60%
Savings 389,173 393,119 374,987 (1.00)% 3.78%
Certificates of deposits 1,855,411 1,414,339 1,468,975 31.19% 26.31%
Total 13,598,131 13,771,800 13,294,223 (1.26)% 2.29%


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
Three Months Ended Three Months Ended Three Months Ended
March 31, 2023 December 31, 2022 March 31, 2022
Interest Average Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate (1) Balance Expense Rate (1) Balance Expense Rate (1)
Assets:
Loans (net of unearned income
and deferred costs)
$11,097,626 $133,536 4.88% $10,701,612 $124,064 4.60% $9,668,724 $95,596 4.01%
Taxable investment securities 2,438,489 16,816 2.76% 2,288,344 14,251 2.49% 2,059,614 9,013 1.75%
Tax-exempt investment securities 188,033 1,887 4.01% 140,108 1,262 3.60% 110,698 777 2.81%
Total securities 2,626,522 18,703 2.85% 2,428,452 15,513 2.56% 2,170,312 9,790 1.80%
Interest-bearing deposits 1,044,538 10,649 4.13% 1,321,964 11,387 3.42% 2,929,929 1,347 0.19%
Loans held for sale 105,018 1,604 6.11% 124,949 1,842 5.90% 276,448 2,375 3.44%
Total earning assets 14,873,704 164,492 4.49% 14,576,977 152,806 4.16% 15,045,413 109,108 2.94%
Less: allowance for credit losses (114,447) (108,288) (106,172)
Total nonearning assets 1,589,783 1,461,067 1,372,757
Total assets$16,349,040 $15,929,756 $16,311,998
Liabilities and Equity:
Interest-bearing deposits
Demand and money market$6,217,754 $23,302 1.52% $6,022,582 $13,903 0.92% $6,178,217 $2,262 0.15%
Savings 401,776 844 0.85% 378,816 763 0.80% 382,839 511 0.54%
Certificates of deposit 1,683,354 9,788 2.36% 1,468,589 5,452 1.47% 1,472,942 2,121 0.58%
Total interest-bearing deposits 8,302,884 33,934 1.66% 7,869,987 20,118 1.01% 8,033,998 4,894 0.25%
Borrowings 355,833 3,915 4.40% 138,510 909 2.57% 135,775 137 0.40%
Subordinated debt, net 250,066 2,169 3.47% 247,319 2,108 3.41% 386,934 4,120 4.26%
Total interest-bearing liabilities 8,908,783 40,018 1.82% 8,255,816 23,135 1.11% 8,556,707 9,151 0.43%
Demand deposits 5,164,415 5,484,477 5,467,153
Other noninterest-bearing liabilities 329,840 334,033 387,871
Total liabilities 14,403,038 14,074,326 14,411,731
Shareholders' equity 1,946,002 1,855,430 1,900,267
Total liabilities and equity$16,349,040 $15,929,756 $16,311,998
Net interest income (tax-equivalent basis) (4) $124,474 $129,671 $99,957
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment (1,096) (888) (753)
Net interest income (GAAP) $123,378 $128,783 $99,204
Interest rate spread (2)(4) 2.67% 3.05% 2.51%
Interest expense as a percent of average earning assets 1.09% 0.63% 0.25%
Net interest margin (tax equivalent basis) (3)(4) 3.39% 3.53% 2.69%
Total cost of deposits 1.02% 0.60% 0.15%

(1) Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.

TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)
March 31, December 31,
2023 2022
(unaudited) (audited)
ASSETS
Cash and due from banks$97,502 $55,381
Interest-bearing deposits at FRB - Richmond 1,040,112 1,000,205
Federal funds sold and interest-bearing deposits in financial institutions 104,924 97,244
Total Cash and Cash Equivalents 1,242,538 1,152,830
Securities available for sale, at fair value (amortized cost of $2,245,344 and $2,033,040, and allowance for credit losses of $1,150 and $1,086 at March 31, 2023 and December 31, 2022, respectively) 2,078,483 1,840,902
Securities held to maturity, at amortized cost (fair value $524,600 and $518,993 at March 31, 2023 and December 31, 2022, respectively) 548,226 548,475
Less: allowance for credit losses (88) (83)
Securities held to maturity, net of allowance for credit losses 548,138 548,392
Other equity securities 13,341 6,424
FHLB stock 29,837 9,617
Total Securities 2,669,799 2,405,335
Mortgage loans held for sale 157,161 102,339
Loans, net of unearned income and deferred costs 11,173,785 10,794,602
Less: allowance for credit losses (120,002) (110,816)
Net Loans 11,053,783 10,683,786
Premises and equipment, net 321,944 304,802
Goodwill 477,234 458,482
Other intangible assets, net 73,238 43,163
BOLI 271,704 258,069
Other assets 463,076 436,461
TOTAL ASSETS$16,730,477 $15,845,267
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand$5,069,363 $5,265,186
Interest-bearing:
Demand and money market accounts 6,284,184 6,185,075
Savings 389,173 374,987
Certificates of deposit 1,855,411 1,468,975
Total Deposits 13,598,131 13,294,223
Advances from the FHLB 504,497 29,674
Subordinated debt, net 255,151 247,420
Repurchase agreements and other borrowings 46,602 40,918
Total Borrowings 806,250 318,012
Other liabilities 336,201 344,275
TOTAL LIABILITIES 14,740,582 13,956,510
Preferred stock, authorized and unissued shares - 2,000,000 - -
Common stock, $1.667 par value: 150,000,000 shares authorized
74,804,431 and 72,841,379 shares issued at
March 31, 2023 and December 31, 2022, respectively 124,682 121,426
Capital surplus 1,109,387 1,052,262
Retained earnings 861,905 840,777
Common stock issued to deferred compensation trust, at cost
926,727 and 931,030 shares at March 31, 2023 and December 31, 2022, respectively (18,839) (18,974)
Deferred compensation trust 18,839 18,974
Accumulated other comprehensive income (loss) (121,297) (140,505)
TOTAL SHAREHOLDERS' EQUITY 1,974,677 1,873,960
Noncontrolling interest 15,218 14,797
TOTAL EQUITY 1,989,895 1,888,757
TOTAL LIABILITIES AND EQUITY$16,730,477 $15,845,267


TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2023 2022
INTEREST INCOME:
Loans, including fees$132,768 $94,962
Investment securities 18,375 9,671
Interest-bearing deposits in financial institutions and federal funds sold 10,649 1,347
Mortgage loans held for sale 1,604 2,375
Total interest income 163,396 108,355
INTEREST EXPENSE:
Deposits 33,934 4,894
Advances from the FHLB 2,992 92
Subordinated debt, net 2,169 4,120
Repurchase agreements and other borrowings 923 45
Total interest expense 40,018 9,151
Net interest income 123,378 99,204
PROVISION FOR CREDIT LOSSES 11,670 (1,449)
Net interest income after provision for credit losses 111,708 100,653
NONINTEREST INCOME:
Residential mortgage banking income, net 9,372 14,638
Insurance commissions and other title fees and income, net 22,823 19,074
Property management income, net 15,535 17,147
Real estate brokerage income, net 1,791 2,554
Service charges on deposit accounts 2,851 2,574
Credit card merchant fees, net 1,545 1,375
BOLI 1,672 1,717
Other income 5,177 7,129
Total noninterest income 60,766 66,208
NONINTEREST EXPENSE:
Salaries and employee benefits 69,420 63,963
Occupancy 9,064 8,327
Furniture and equipment 4,244 3,690
Amortization - intangibles 3,524 2,817
Software expense 5,624 4,492
Data processing 3,353 3,594
Professional fees 3,011 2,027
Advertising and marketing 4,401 4,127
Other expenses 21,756 16,342
Total noninterest expense 124,397 109,379
Income before income tax expense and noncontrolling interest 48,077 57,482
Provision for income tax expense 9,599 11,232
Net income$38,478 $46,250
Net income attributable to noncontrolling interest (145) (664)
Net income attributable to TowneBank$38,333 $45,586
Per common share information
Basic earnings$0.52 $0.63
Diluted earnings$0.52 $0.63
Cash dividends declared$0.23 $0.20


TOWNEBANK
Consolidated Balance Sheets - Five Quarter Trend
(dollars in thousands, except share data)
March 31, December 31, September 30, June 30, March 31,
2023 2022 2022 2022 2022
(unaudited) (audited) (unaudited) (unaudited) (unaudited)
ASSETS
Cash and due from banks$97,502 $55,381 $97,290 $72,592 $74,991
Interest-bearing deposits at FRB - Richmond 1,040,112 1,000,205 1,245,067 2,341,942 2,857,327
Federal funds sold and interest-bearing deposits in financial institutions 104,924 97,244 96,862 35,087 34,684
Total Cash and Cash Equivalents 1,242,538 1,152,830 1,439,219 2,449,621 2,967,002
Securities available for sale 2,078,483 1,840,902 1,890,136 1,914,011 1,846,540
Securities held to maturity 548,226 548,475 548,745 549,083 433,384
Less: allowance for credit losses (88) (83) (83) (85) (92)
Securities held to maturity, net of allowance for credit losses 548,138 548,392 548,662 548,998 433,292
Other equity securities 13,341 6,424 6,360 6,679 6,789
FHLB stock 29,837 9,617 9,475 10,432 10,432
Total Securities 2,669,799 2,405,335 2,454,633 2,480,120 2,297,053
Mortgage loans held for sale 157,161 102,339 165,023 211,716 234,620
Loans, net of unearned income and deferred costs 11,173,785 10,794,602 10,559,611 10,425,760 9,909,308
Less: allowance for credit losses (120,002) (110,816) (107,497) (104,019) (103,833)
Net Loans 11,053,783 10,683,786 10,452,114 10,321,741 9,805,475
Premises and equipment, net 321,944 304,802 295,345 289,753 277,764
Goodwill 477,234 458,482 458,482 457,162 457,162
Other intangible assets, net 73,238 43,163 44,854 44,878 47,562
BOLI 271,704 258,069 256,074 254,478 253,112
Other assets 463,076 436,461 386,053 354,570 326,838
TOTAL ASSETS$16,730,477 $15,845,267 $15,951,797 $16,864,039 $16,666,588
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand$5,069,363 $5,265,186 $5,574,528 $5,723,415 $5,532,337
Interest-bearing:
Demand and money market accounts 6,284,184 6,185,075 6,042,417 6,384,818 6,432,005
Savings 389,173 374,987 387,622 388,364 393,119
Certificates of deposit 1,855,411 1,468,975 1,407,495 1,499,514 1,414,339
Total Deposits 13,598,131 13,294,223 13,412,062 13,996,111 13,771,800
Advances from the FHLB 504,497 29,674 29,850 55,024 55,196
Subordinated debt, net 255,151 247,420 247,265 497,061 496,757
Repurchase agreements and other borrowings 46,602 40,918 43,165 47,922 75,988
Total Borrowings 806,250 318,012 320,280 600,007 627,941
Other liabilities 336,201 344,275 375,869 397,388 387,087
TOTAL LIABILITIES 14,740,582 13,956,510 14,108,211 14,993,506 14,786,828
Preferred stock - - - - -
Common stock, $1.667 par value 124,682 121,426 121,423 121,265 121,231
Capital surplus 1,109,387 1,052,262 1,052,374 1,051,384 1,050,387
Retained earnings 861,905 840,777 810,845 777,430 747,614
Common stock issued to deferred compensation
trust, at cost (18,839) (18,974) (18,862) (19,349) (18,323)
Deferred compensation trust 18,839 18,974 18,862 19,349 18,323
Accumulated other comprehensive income (loss) (121,297) (140,505) (157,980) (96,358) (56,712)
TOTAL SHAREHOLDERS' EQUITY 1,974,677 1,873,960 1,826,662 1,853,721 1,862,520
Noncontrolling interest 15,218 14,797 16,924 16,812 17,240
TOTAL EQUITY 1,989,895 1,888,757 1,843,586 1,870,533 1,879,760
TOTAL LIABILITIES AND EQUITY$16,730,477 $15,845,267 $15,951,797 $16,864,039 $16,666,588


TOWNEBANK
Consolidated Statements of Income - Five Quarter Trend (unaudited)
(dollars in thousands, except share data)
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2023 2022 2022 2022 2022
INTEREST INCOME:
Loans, including fees$132,768 $123,395 $111,590 $101,043 $94,962
Investment securities 18,375 15,294 13,979 12,263 9,671
Interest-bearing deposits in financial institutions and federal funds sold 10,649 11,387 9,509 4,616 1,347
Mortgage loans held for sale 1,604 1,842 2,446 2,217 2,375
Total interest income 163,396 151,918 137,524 120,139 108,355
INTEREST EXPENSE:
Deposits 33,934 20,118 10,230 5,573 4,894
Advances from the FHLB 2,992 665 83 86 92
Subordinated debt, net 2,169 2,108 3,117 5,091 4,120
Repurchase agreements and other borrowings 923 244 56 49 45
Total interest expense 40,018 23,135 13,486 10,799 9,151
Net interest income 123,378 128,783 124,038 109,340 99,204
PROVISION FOR CREDIT LOSSES 11,670 6,074 3,925 56 (1,449)
Net interest income after provision for credit losses 111,708 122,709 120,113 109,284 100,653
NONINTEREST INCOME:
Residential mortgage banking income, net 9,372 7,368 11,968 13,176 14,638
Insurance commissions and other title fees and income, net 22,823 17,324 19,435 19,746 19,074
Property management income, net 15,535 7,756 9,891 9,452 17,147
Real estate brokerage income, net 1,791 2,355 2,932 3,412 2,554
Service charges on deposit accounts 2,851 2,655 2,455 2,446 2,574
Credit card merchant fees, net 1,545 1,653 1,658 1,906 1,375
BOLI 1,672 1,985 1,585 1,853 1,717
Other income 5,177 5,428 5,274 5,649 7,129
Total noninterest income 60,766 46,524 55,198 57,640 66,208
NONINTEREST EXPENSE:
Salaries and employee benefits 69,420 61,307 65,463 64,892 63,963
Occupancy 9,064 9,252 8,748 8,342 8,327
Furniture and equipment 4,244 3,983 3,764 3,643 3,690
Amortization - intangibles 3,524 2,475 2,644 2,684 2,817
Software expense 5,624 5,111 4,594 4,762 4,492
Data processing 3,353 3,096 3,628 3,556 3,594
Professional fees 3,011 3,605 2,627 1,761 2,027
Advertising and marketing 4,401 3,489 4,290 4,091 4,127
Other expenses 21,756 18,823 16,276 14,994 16,342
Total noninterest expense 124,397 111,141 112,034 108,725 109,379
Income before income tax expense and noncontrolling interest 48,077 58,092 63,277 58,199 57,482
Provision for income tax expense 9,599 11,598 12,606 11,145 11,232
Net income 38,478 46,494 50,671 47,054 46,250
Net income attributable to noncontrolling interest (145) 191 (502) (507) (664)
Net income attributable to TowneBank$38,333 $46,685 $50,169 $46,547 $45,586
Per common share information
Basic earnings$0.52 $0.64 $0.69 $0.64 $0.63
Diluted earnings$0.52 $0.64 $0.69 $0.64 $0.63
Basic weighted average shares outstanding 74,363,222 72,686,303 72,578,736 72,559,537 72,498,075
Diluted weighted average shares outstanding 74,390,614 72,724,189 72,594,474 72,568,886 72,562,122
Cash dividends declared$0.23 $0.23 $0.23 $0.23 $0.20


TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)
Three Months Ended Increase/(Decrease)
March 31, December 31, 2023 over 2022
2023 2022 2022 Amount Percent
Revenue
Net interest income$123,650 $96,770 $128,655 $26,880 27.78%
Service charges on deposit
accounts 2,851 2,574 2,656 277 10.76%
Credit card merchant fees 1,545 1,375 1,653 170 12.36%
Other income 5,740 6,710 5,799 (970) (14.46)%
Total noninterest income 10,136 10,659 10,108 (523) (4.91)%
Total revenue 133,786 107,429 138,763 26,357 24.53%
Provision for credit losses 11,754 (1,833) 6,312 13,587 (741.24)%
Expenses
Salaries and employee benefits 43,193 37,059 37,788 6,134 16.55%
Occupancy 6,233 5,659 6,500 574 10.14%
Furniture and equipment 3,333 2,709 3,061 624 23.03%
Amortization of intangible assets 1,281 827 676 454 54.90%
Other expenses 28,444 18,228 24,141 10,216 56.05%
Total expenses 82,484 64,482 72,166 18,002 27.92%
Income before income tax, corporate allocation and noncontrolling interest 39,548 44,780 60,285 (5,232) (11.68)%
Corporate allocation 1,200 1,292 861 (92) (7.12)%
Income before income tax provision and noncontrolling interest 40,748 46,072 61,146 (5,324) (11.56)%
Provision for income tax expense 7,651 8,519 12,162 (868) (10.19)%
Net income 33,097 37,553 48,984 (4,456) (11.87)%
Noncontrolling interest - - - - N/M
Net income attributable to TowneBank$33,097 $37,553 $48,984 $(4,456) (11.87)%
Efficiency ratio (non-GAAP) 60.70% 59.25% 51.52% 1.45% 2.45%


TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)
Three Months Ended Increase/(Decrease)
March 31, December 31, 2023 over 2022
2023 2022 2022 Amount Percent
Revenue
Residential mortgage brokerage
income, net
$9,794 $15,906 $8,292 $(6,112) (38.43)%
Real estate brokerage income, net 1,791 2,554 2,354 (763) (29.87)%
Title insurance and settlement fees 291 504 391 (213) (42.26)%
Property management fees, net 15,535 17,147 7,757 (1,612) (9.40)%
Income from unconsolidated
subsidiary
66 167 10 (101) (60.48)%
Net interest and other income 184 2,932 626 (2,748) (93.72)%
Total revenue 27,661 39,210 19,430 (11,549) (29.45)%
Provision for credit losses (84) 384 (238) (468) (121.88)%
Expenses
Salaries and employee benefits 14,839 17,291 13,617 (2,452) (14.18)%
Occupancy 2,021 1,898 1,970 123 6.48%
Furniture and equipment 693 761 738 (68) (8.94)%
Amortization of intangible assets 683 816 653 (133) (16.30)%
Other expenses 8,437 10,852 8,056 (2,415) (22.25)%
Total expenses 26,673 31,618 25,034 (4,945) (15.64)%
Income before income tax, corporate allocation and noncontrolling interest 1,072 7,208 (5,366) (6,136) (85.13)%
Corporate allocation (600) (1,000) (600) 400 (40.00)%
Income before income tax provision and noncontrolling interest 472 6,208 (5,966) (5,736) (92.40)%
Provision for income tax expense 182 1,374 (1,296) (1,192) (86.75)%
Net income 290 4,834 (4,670) (4,544) (94.00)%
Noncontrolling interest (145) (664) 191 519 (78.16)%
Net income attributable to TowneBank$145 $4,170 $(4,479) $(4,025) (96.52)%
Efficiency ratio (non-GAAP) 93.96% 78.56% 125.48% 15.40% 19.60%


TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)
Three Months Ended Increase/(Decrease)
March 31, December 31, 2023 over 2022
2023 2022 2022 Amount Percent
Commission and fee income
Property and casualty$18,129 $15,337 $15,221 $2,792 18.20%
Employee benefits 4,587 4,161 3,949 426 10.24%
Specialized benefit services 159 170 169 (11) (6.47)%
Total commissions and fees 22,875 19,668 19,339 3,207 16.31%
Contingency and bonus revenue 4,369 3,404 2,033 965 28.35%
Other income 6 33 12 (27) (81.82)%
Total revenue 27,250 23,105 21,384 4,145 17.94%
Employee commission expense 4,553 4,332 4,270 221 5.10%
Revenue, net of commission expense 22,697 18,773 17,114 3,924 20.90%
Salaries and employee benefits 11,388 9,613 9,902 1,775 18.46%
Occupancy 810 770 782 40 5.19%
Furniture and equipment 218 220 184 (2) (0.91)%
Amortization of intangible assets 1,560 1,174 1,146 386 32.88%
Other expenses 1,264 1,502 1,927 (238) (15.85)%
Total operating expenses 15,240 13,279 13,941 1,961 14.77%
Income before income tax, corporate allocation and noncontrolling interest 7,457 5,494 3,173 1,963 35.73%
Corporate allocation (600) (292) (261) (308) 105.48%
Income before income tax provision and noncontrolling interest 6,857 5,202 2,912 1,655 31.81%
Provision for income tax expense 1,766 1,339 732 427 31.89%
Net income 5,091 3,863 2,180 1,228 31.79%
Noncontrolling interest - - - - N/M
Net income attributable to TowneBank$5,091 $3,863 $2,180 $1,228 31.79%
Provision for income taxes 1,766 1,339 732 427 31.89%
Depreciation, amortization and interest expense 1,706 1,319 1,285 387 29.34%
EBITDA (non-GAAP)$8,563 $6,521 $4,197 $2,042 31.31%
Efficiency ratio (non-GAAP) 60.27% 64.48% 74.76% (4.21)% (6.53)%


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
Three Months Ended
March 31, March 31, December 31,
2023 2022 2022
Return on average assets (GAAP) 0.95% 1.13% 1.16%
Impact of excluding average goodwill and other
intangibles and amortization
0.10% 0.10% 0.09%
Return on average tangible assets (non-GAAP) 1.05% 1.23% 1.25%
Return on average equity (GAAP) 7.99% 9.73% 9.98%
Impact of excluding average goodwill and other
intangibles and amortization
3.72% 4.18% 4.28%
Return on average tangible equity (non-GAAP) 11.71% 13.91% 14.26%
Return on average common equity (GAAP) 8.05% 9.81% 10.07%
Impact of excluding average goodwill and other
intangibles and amortization
3.78% 4.27% 4.37%
Return on average tangible common equity
(non-GAAP)
11.83% 14.08% 14.44%
Book value (GAAP)$26.40 $25.61 $25.73
Impact of excluding average goodwill and other
intangibles and amortization
(7.36) (6.94) (6.89)
Tangible book value (non-GAAP)$19.04 $18.67 $18.84
Efficiency ratio (GAAP) 67.55% 66.13% 63.40%
Impact of exclusions (1.91)% (1.71)% (1.41)%
Efficiency ratio (non-GAAP) 65.64% 64.42% 61.99%
Average assets (GAAP)$16,349,040 $16,311,998 $15,929,756
Less: average goodwill and intangible assets 521,972 506,496 502,539
Average tangible assets (non-GAAP)$15,827,068 $15,805,502 $15,427,217
Average equity (GAAP)$1,946,002 $1,900,267 $1,855,430
Less: average goodwill and intangible assets 521,972 506,496 502,539
Average tangible equity (non-GAAP)$1,424,030 $1,393,771 $1,352,891
Average common equity (GAAP)$1,931,063 $1,884,101 $1,838,895
Less: average goodwill and intangible assets 521,972 506,496 502,539
Average tangible common equity (non-GAAP)$1,409,091 $1,377,605 $1,336,356
Net income (GAAP)$38,333 $45,586 $46,685
Amortization of intangibles, net of tax 2,784 2,225 1,955
Tangible net income (non-GAAP)$41,117 $47,811 $48,640
Net income (GAAP)$38,333 $45,586 $46,685
Provision for credit losses 11,670 (1,449) 6,074
Provision for income tax 9,599 11,232 11,598
Other nonrecurring (income) loss - - -
Pre-provision, pre-tax net revenues (non-GAAP)$59,602 $55,369 $64,357
Noninterest expense (GAAP)$124,397 $109,379 $111,141
Less: amortization of intangibles 3,524 2,817 2,475
Noninterest expense net of amortization (non-GAAP)$120,873 $106,562 $108,666


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2023 2022 2022 2022 2022
Net income (GAAP) $38,333 $46,685 $50,169 $46,547 $45,586
Acquisition-related items
Merger expenses 5,964 339 616 51 59
Initial provision for credit losses 4,008 - - - -
Income tax expense (benefit) (2,003) (19) (6) (1) (12)
Total charges, net of taxes 7,969 320 610 50 47
Core operating earnings, excluding certain items affecting comparability (non-GAAP) $46,302 $47,005 $50,779 $46,597 $45,633
Weighted average diluted shares 74,390,614 72,724,189 72,594,474 72,568,886 72,562,122
Diluted EPS (GAAP) $0.52 $0.64 $0.69 $0.64 $0.63
Diluted EPS, excluding certain items affecting
comparability (non-GAAP)
$0.62 $0.65 $0.70 $0.64 $0.63
Average assets $16,349,040 $15,929,756 $16,304,294 $16,529,810 $16,311,998
Average tangible equity $1,424,030 $1,352,891 1,374,574 $1,374,683 $1,393,771
Average common tangible equity $1,409,091 $1,336,356 $1,357,845 $1,357,957 $1,377,605
Return on average assets, excluding certain items
affecting comparability (non-GAAP)
1.15% 1.17% 1.24% 1.13% 1.13%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) 13.98% 14.36% 15.26% 14.21% 13.93%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) 14.13% 14.54% 15.45% 14.39% 14.09%
Efficiency ratio, excluding certain items affecting
comparability (non-GAAP)
64.32% 63.20% 62.16% 65.08% 66.09%



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