Taylor Capital Reports First Quarter Results
CHICAGO, April 28 /PRNewswire-FirstCall/ -- Taylor Capital Group, Inc. (the "Company") (Nasdaq: TAYC), the parent company of Cole Taylor Bank, one of Chicago's leading middle market commercial banks (the "Bank"), today reported results for the first quarter of 2010.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060605/CGM055LOGO)
For the three months ended March 31, 2010, the Company reported a net loss applicable to common stockholders of $13.6 million, or $1.30 per diluted common share, compared to a net loss applicable to common stockholders of $5.9 million, or $0.56 per diluted share common share, for the fourth quarter of 2009.
Financial Highlights
- Pre-tax, pre-provision earnings from core operations totaled $14.2 million for the three months ended March 31, 2010, as compared to $14.8 million for the three months ended December 31, 2009, and $11.6 million for the three months ended March 31, 2009.
- Net interest income for the first quarter of 2010 rose to $33.5 million, up from $32.8 million in the fourth quarter of 2009. The Company's net interest margin for the first quarter was 3.15%, up from 3.10% for the fourth quarter.
- Noninterest expense was $27.2 million for the first quarter of 2010, down from $30.2 million in the fourth quarter of 2009.
- The Company's asset quality indicators were stable between the periods:
- Nonaccrual loans totaled $141.1 million at March 31, 2010, as compared to $141.4 million reported at December 31, 2009.
- Nonperforming assets were 3.73% of total assets at March 31, 2010, down from 3.81% at December 31, 2009.
- The allowance for loan losses as a percent of total loans was 3.33% at March 31, 2010, as compared to 3.50% at December 31, 2009.
- The first quarter 2010 provision for loan losses rose to $21.1 million, up from $19.0 million for the fourth quarter of 2009.
- Total credit expense for the first quarter (provision for loan losses plus nonperforming asset expense) was $26.1 million as compared to $27.5 million for the fourth quarter of 2009.
- The Company's capital ratios remain above all regulatory requirements for well-capitalized banks.
In commenting on the results, Taylor Capital Chairman Bruce W. Taylor said, "The past two years have seen a dramatic transformation of this organization. We've refocused the bank on our core middle market commercial lending business and added significant new talent across the organization. We're expanding our products and services and seeking new revenue opportunities. The quality of the new relationships we're bringing to the bank reflects positively on the quality of our staff and the products and services we bring to the middle market."
"We continued to add new commercial banking relationships in the first quarter, with our asset based lending group being an area of particular strength," said Mark A. Hoppe, President and Chief Executive Officer of Taylor Capital and Cole Taylor Bank. "That group has seen strong growth in both relationships and new loans. Our residential mortgage origination business was launched in January and is ramping up quickly. We recently announced plans to exchange shares of Series A preferred stock into shares of our common stock and to raise $60 million in additional capital during the second quarter of 2010. We are working to improve our sources of revenue, while continuing to aggressively recognize and deal with problems in our loan portfolio. This resulted in increased charge-offs and a larger provision for loan losses and negatively impacted our results for the quarter. Asset quality has been and will continue to be a top priority for us."
Pre-tax, Pre-Provision Earnings From Core Operations
The Company's pre-tax, pre-provision earnings from core operations totaled $14.2 million for the three months ended March 31, 2010, as compared to $14.8 million for the three months ended December 31, 2009, and $11.6 million for the three months ended March 31, 2009. The decrease in first quarter 2010 results as compared to the fourth quarter of 2009 was primarily attributable to higher operating expenses associated with the Bank's new mortgage origination group. As compared to the first quarter of 2009, pre-tax, pre-provision earnings from core operations for the first quarter of 2010 increased due to an increase in net interest income, partially offset by increased operating expenses including costs for the new mortgage origination group and higher FDIC insurance expense. A schedule reconciling earnings in accordance with U. S. generally accepted accounting principles ("GAAP") to the non-GAAP measurement of pre-tax, pre-provision earnings from core operations is provided in the attached tables.
Revenue
For the first quarter of 2010, the Company's net interest income increased to $33.5 million, up from $32.8 million reported for the fourth quarter of 2009.
The net interest margin was 3.15% for the first quarter of 2010, up from 3.10% in the fourth quarter of 2009. A ten basis point decline in the Company's yield on interest-earning assets, primarily due to investment portfolio changes which reduced the overall yield of the portfolio, was more than offset by a 26 point decline in the cost of funds. The 26 basis point decline was attributable to reductions in rates paid on time deposits and other borrowed funds, along with an increased volume of funding from lower cost sources.
Noninterest income for the first quarter of 2010 totaled $4.4 million, down from $12.7 million in the prior quarter. This was primarily the result of a $7.5 million decrease in gains on sales of investment securities. Service charge and other fee income remained relatively flat from the previous quarter, while revenue from the Bank's new residential mortgage origination group totaled $303,000. Offsetting these changes was a first quarter loss on the disposition of purchased mortgage loans of $2.0 million, $1.3 million greater than the $656,000 loss recorded in the fourth quarter of 2009. This is largely due to losses on hedges placed on single-family mortgages held for sale and write downs on the transfer of some of these loans to the portfolio.
Expense
Noninterest expense totaled $27.2 million for the first quarter of 2010 as compared to $30.2 million for the fourth quarter of 2009. A $3.5 million reduction in nonperforming asset expense was partially offset by $1.2 million in expenses attributable to the new residential mortgage origination unit. Excluding the nonperforming asset expense and costs associated with the new mortgage origination unit, noninterest expense would have declined by $775,000 between the periods.
Balance Sheet
At March 31, 2010, the Company's assets totaled $4.5 billion, compared to $4.4 billion at December 31, 2009.
Investment securities increased to $1.4 billion at March 31, 2010, from $1.3 billion at December 31, 2009. This increase was due to purchases intended to enhance the Company's asset/liability mix.
Total loans in the portfolio were $2.9 billion at March 31, 2010, and $2.8 billion at December 31, 2009. Growth from new relationships and expanded existing relationships was offset by continued low levels of line utilization by customers as well as loan charge-offs. Loans held for sale at March 31, 2010, totaled $28.5 million, down from $81.9 million at December 31, 2009. The reduction was due to the transfer of commercial and mortgage loans to the Bank's loan portfolio and the sale of mortgage loans held for sale.
At March 31, 2010, the Company's total deposits remained at $3.0 billion, unchanged from December 31, 2009. A decrease in noninterest bearing deposits and in other interest bearing transaction accounts was offset by growth in money market accounts and certificates of deposit.
Other borrowings increased to $633.4 million at March 31, 2010, from $337.7 million at December 31, 2009, as the Company added lower cost liabilities, primarily wholesale repurchase agreements and downstream federal funds purchased to its balance sheet. Notes payable and other advances declined to $475.0 million at the end of the first quarter from $627.0 million at year end due to the Company's planned exit from the Federal Reserve Term Auction Facility.
Credit Quality
At March 31, 2010, total non-performing assets rose slightly to $168.5 million from the $167.7 million reported at December 31, 2009. However, as a percent of total assets, nonperforming assets decreased to 3.73% at March 31, 2010, down from 3.81% of total assets at December 31, 2009.
Nonaccrual loans totaled $141.1 million at March 31, 2010, as compared to $141.4 million at December 31, 2009. In response to the significant decline in the housing market, the Company continues to reduce its exposure to residential construction and land loans. At March 31, 2010, residential construction and land loans totaled $206.7 million, down from $221.9 million at December 31, 2009 and $338.2 million at March 31, 2009. Nonaccrual loans in that category declined to $57.3 million, down from $62.8 million at December 31, 2009 and $100.6 million one year earlier. Offsetting that decline was an increase in nonaccrual commercial construction and land loans. Other real estate owned was $27.4 million at March 31, 2010, as compared to $26.2 million at the end of 2009. Loans contractually past due 30 through 89 days were $13.2 million at both March 31, 2010, and at December 31, 2009.
The provision for loan losses for the first quarter of 2010 was $21.1 million, up $2.1 million from $19.0 million recorded for the fourth quarter of 2009. Total credit expense for the first quarter (provision for loan losses plus nonperforming asset expense) was $26.1 million as compared to $27.5 million for the fourth quarter of 2009.
The allowance for loan losses was $100.2 million at March 31, 2010, compared to $106.2 million at December 31, 2009. As a percent of loans, the loan loss allowance was 3.33% at March 31, 2010, as compared to 3.50% at December 31, 2009. As a percent of nonperforming loans, the allowance was 70.93% at March 31, 2010, down from 75.06% at December 31, 2009.
Capital
At March 31, 2010, the Company's Tier I Risk Based Capital ratio was 9.29%, while its Total Risk Based Capital ratio was 12.34% and its Tier I Capital to Average Assets leverage ratio was 7.07%. These ratios exceed all regulatory requirements for well-capitalized banks, which are 6.00% for Tier I Risk Based Capital, 10.00% for Total Risk Based Capital and 5.00% for Tier I Capital to Average Assets.
About Taylor Capital Group, Inc. (NASDAQ: TAYC)
Taylor Capital Group, Inc. is a $4.5 billion bank holding company for Cole Taylor Bank, a Chicago-based commercial bank specializing in serving the banking needs of closely held businesses and the people who own and manage them. Cole Taylor is a member of the FDIC and an Equal Housing Lender.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "might", "contemplate", "plan", "prudent", "potential", "should", "will," "expect," "anticipate," "believe," "intend," "could" and "estimate" and similar expressions. These forward-looking statements are based on information currently available to us and are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities in 2010 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation: the effect on our profitability if interest rates fluctuate as well as the effect of our customers' changing use of our deposit products; the possibility that our wholesale funding sources may prove insufficient to replace deposits at maturity and support our growth; the risk that our allowance for loan losses may prove insufficient to absorb probable losses in our loan portfolio; possible volatility in loan charge-offs and recoveries between periods; the decline in residential real estate sales volume and the likely potential for continuing illiquidity in the real estate market, including within the Chicago metropolitan area; the risks associated with the high concentration of commercial real estate loans in our portfolio; the uncertainties in estimating the fair value of developed real estate and undeveloped land in light of declining demand for such assets and continuing illiquidity in the real estate market; the risks associated with management changes, employee turnover and our commercial banking growth initiative, including our expansion of our asset-based lending operations and our entry into new geographical markets; negative developments and disruptions in the credit and lending markets, including the impact of the ongoing credit crisis on our business and on the businesses of our customers as well as other banks and lending institutions with which we have commercial relationships; a continuation of the recent unprecedented volatility in the capital markets; the effectiveness of our hedging transactions and their impact on our future results of operations; the risks associated with implementing our business strategy and managing our growth effectively, including our ability to preserve and access sufficient capital to execute on our strategy; changes in general economic and capital market conditions, interest rates, our debt credit ratings, deposit flows, loan demand, including loan syndication opportunities and competition; changes in legislation or regulatory and accounting principles, policies or guidelines affecting our business; and other economic, competitive, governmental, regulatory and technological factors impacting our operations.
For further information about these and other risks, uncertainties and factors, please review the disclosure included in the section captioned "Risk Factors" in our December 31, 2009 Annual Report on Form 10-K filed with the SEC on March 29, 2010. You should not place undue reliance on any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements or risk factors, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release.
TAYLOR CAPITAL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
||||
(Unaudited) 2010 |
Dec. 31, 2009 |
|||
ASSETS |
||||
Cash and cash equivalents |
$38,666 |
$48,469 |
||
Investment securities |
1,408,240 |
1,271,271 |
||
Loans held for sale, at lower of cost or market |
28,492 |
81,853 |
||
Loans, net of allowance for loan losses of $100,151 and $106,185 at March 31, 2010 and December 31, 2009, respectively |
2,878,128 |
2,847,290 |
||
Premises, leasehold improvements and equipment, net |
14,951 |
15,515 |
||
Investment in Federal Home Loan Bank and Federal Reserve Bank stock |
36,484 |
31,210 |
||
Other real estate and repossessed assets, net |
27,355 |
26,231 |
||
Other assets |
81,864 |
81,663 |
||
Total assets |
$4,514,180 |
$4,403,502 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Deposits: |
||||
Noninterest-bearing |
$587,402 |
$659,146 |
||
Interest-bearing |
2,370,318 |
2,317,654 |
||
Total deposits |
2,957,720 |
2,976,800 |
||
Other borrowings |
633,422 |
337,669 |
||
Accrued interest, taxes and other liabilities |
51,830 |
60,925 |
||
Notes payable and other advances |
475,000 |
627,000 |
||
Junior subordinated debentures |
86,607 |
86,607 |
||
Subordinated notes, net |
55,801 |
55,695 |
||
Total liabilities |
4,260,380 |
4,144,696 |
||
Stockholders' equity: |
||||
Preferred stock, Series A |
60,000 |
60,000 |
||
Preferred stock, Series B |
99,221 |
98,844 |
||
Common stock |
120 |
120 |
||
Surplus |
227,022 |
226,398 |
||
Accumulated deficit |
(124,251) |
(110,617) |
||
Accumulated other comprehensive income, net |
16,324 |
8,697 |
||
Treasury stock |
(24,636) |
(24,636) |
||
Total stockholders' equity |
253,800 |
258,806 |
||
Total liabilities and stockholders' equity |
$4,514,180 |
$4,403,502 |
||
TAYLOR CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
||||||
For the Three Months Ended |
||||||
Mar. 31, 2010 |
Dec. 31, 2009 |
Mar. 31, 2009 |
||||
Interest income: |
||||||
Interest and fees on loans |
$38,211 |
$40,180 |
$39,367 |
|||
Interest and dividends on investment securities: |
||||||
Taxable |
13,446 |
12,515 |
13,513 |
|||
Tax-exempt |
1,229 |
1,265 |
1,427 |
|||
Interest on cash equivalents |
1 |
5 |
10 |
|||
Total interest income |
52,887 |
53,965 |
54,317 |
|||
Interest expense: |
||||||
Deposits |
12,442 |
14,253 |
20,059 |
|||
Other borrowings |
2,285 |
2,226 |
2,176 |
|||
Notes payable and other advances |
1,624 |
1,601 |
1,519 |
|||
Junior subordinated debentures |
1,438 |
1,448 |
1,600 |
|||
Subordinated notes |
1,631 |
1,627 |
1,617 |
|||
Total interest expense |
19,420 |
21,155 |
26,971 |
|||
Net interest income |
33,467 |
32,810 |
27,346 |
|||
Provision for loan losses |
21,130 |
19,002 |
15,563 |
|||
Net interest income after provision for loan losses |
12,337 |
13,808 |
11,783 |
|||
Noninterest income: |
||||||
Service charges |
2,857 |
2,825 |
2,821 |
|||
Trust and investment management fees |
347 |
356 |
534 |
|||
Mortgage origination revenue |
303 |
-- |
-- |
|||
Loss on disposition of bulk purchased mortgage loans |
(2,022) |
(656) |
-- |
|||
Gain on investment securities |
1,433 |
8,958 |
664 |
|||
Other derivative income |
209 |
19 |
1,119 |
|||
Other noninterest income |
1,247 |
1,233 |
205 |
|||
Total noninterest income |
4,374 |
12,735 |
5,343 |
|||
Noninterest expense: |
||||||
Salaries and employee benefits |
11,613 |
10,938 |
10,532 |
|||
Occupancy of premises, furniture and equipment |
2,554 |
2,672 |
2,617 |
|||
Nonperforming asset expense |
4,938 |
8,453 |
754 |
|||
FDIC assessment |
2,213 |
2,167 |
1,531 |
|||
Legal fees, net |
819 |
1,736 |
1,140 |
|||
Early extinguishment of debt |
-- |
-- |
527 |
|||
Other noninterest expense |
5,015 |
4,253 |
4,064 |
|||
Total noninterest expense |
27,152 |
30,219 |
21,165 |
|||
Loss before income taxes |
(10,441) |
(3,676) |
(4,039) |
|||
Income tax expense (benefit) |
306 |
(647) |
(1,221) |
|||
Net loss |
(10,747) |
(3,029) |
(2,818) |
|||
Preferred dividends and discounts |
(2,887) |
(2,880) |
(2,862) |
|||
Net loss applicable to common stockholders |
$(13,634) |
$(5,909) |
$(5,680) |
|||
Basic loss per common share |
$(1.30) |
$(0.56) |
$(0.54) |
|||
Diluted loss per common share |
(1.30) |
(0.56) |
(0.54) |
|||
TAYLOR CAPITAL GROUP, INC. COMPOSITION OF LOAN PORTFOLIO (unaudited) (dollars in thousands) |
|||||||||||||
The following table presents the composition of the Company's loan portfolio as of the dates indicated: |
|||||||||||||
March 31, 2010 |
December 31, 2009 |
March 31, 2009 |
|||||||||||
Loans: |
Balance |
Percent of Gross Loans |
Balance |
Percent of Gross Loans |
Balance |
Percent |
|||||||
Commercial and industrial |
$1,263,210 |
42.4% |
$1,264,369 |
42.8% |
$1,439,272 |
44.8% |
|||||||
Commercial real estate secured |
1,180,988 |
39.7 |
1,171,777 |
39.7 |
1,107,775 |
34.5 |
|||||||
Residential construction & land |
206,727 |
6.9 |
221,859 |
7.5 |
338,176 |
10.5 |
|||||||
Commercial construction & land |
142,845 |
4.8 |
142,584 |
4.8 |
175,117 |
5.4 |
|||||||
Total commercial loans |
2,793,770 |
93.8 |
2,800,589 |
94.8 |
3,060,340 |
95.2 |
|||||||
Consumer-oriented loans |
184,513 |
6.2 |
152,892 |
5.2 |
153,768 |
4.8 |
|||||||
Gross loans |
2,978,283 |
100.0% |
2,953,481 |
100.0% |
3,214,108 |
100.0% |
|||||||
Less: Unearned discount |
(4) |
(6) |
(12) |
||||||||||
Total loans |
2,978,279 |
2,953,475 |
3,214,096 |
||||||||||
Less: Loan loss allowance |
(100,151) |
(106,185) |
(130,282) |
||||||||||
Net loans |
$2,878,128 |
$2,847,290 |
$3,083,814 |
||||||||||
Loans Held for Sale |
$28,492 |
$81,853 |
-- |
||||||||||
The following tables provide details of the Company's commercial real estate and residential construction and land portfolios: |
|||||||||||||
March 31, 2010 |
December 31, 2009 |
March 31, 2009 |
|||||||||||
Commercial real estate secured: |
Balance |
Percent of Total |
Balance |
Percent of Total |
Balance |
Percent of |
|||||||
Commercial non-owner occupied: |
|||||||||||||
Retail strip centers or malls |
$211,933 |
17.9% |
$211,817 |
18.1% |
$205,032 |
18.5% |
|||||||
Office/mixed use property |
145,139 |
12.3 |
149,951 |
12.8 |
146,451 |
13.2 |
|||||||
Commercial properties |
144,415 |
12.2 |
144,745 |
12.3 |
141,526 |
12.8 |
|||||||
Specialized – other |
125,726 |
10.7 |
121,530 |
10.4 |
108,808 |
9.8 |
|||||||
Other commercial properties |
66,228 |
5.6 |
64,602 |
5.5 |
57,411 |
5.2 |
|||||||
Commercial non-owner occupied |
693,441 |
58.7 |
692,645 |
59.1 |
659,228 |
59.5 |
|||||||
Commercial owner-occupied |
341,106 |
28.9 |
334,744 |
28.6 |
300,143 |
27.1 |
|||||||
Multi-family properties |
146,441 |
12.4 |
144,388 |
12.3 |
148,404 |
13.4 |
|||||||
Total commercial real estate secured |
$1,180,988 |
100.0% |
$1,171,777 |
100.0% |
$1,107,775 |
100.0% |
|||||||
Residential construction & land: |
|||||||||||||
Residential construction |
$167,728 |
81.1% |
$173,432 |
78.2% |
$269,506 |
79.7% |
|||||||
Land |
38,999 |
18.9 |
48,427 |
21.8 |
68,670 |
20.3 |
|||||||
Total residential construction and land |
$206,727 |
100.0% |
$221,859 |
100.0% |
$338,176 |
100.0% |
|||||||
TAYLOR CAPITAL GROUP, INC. CREDIT QUALITY (unaudited) (dollars in thousands) |
||||||||
At or for the Three Months Ended |
||||||||
Mar. 31, 2010 |
Dec. 31, 2009 |
Mar. 31, 2009 |
||||||
Nonperforming Assets: |
||||||||
Loans contractually past due 90 days or more but still accruing interest |
$58 |
$59 |
$95 |
|||||
Nonaccrual loans: |
||||||||
Commercial and industrial |
25,310 |
26,687 |
25,472 |
|||||
Commercial real estate secured |
34,863 |
36,420 |
35,154 |
|||||
Residential construction and land |
57,320 |
62,795 |
100,558 |
|||||
Commercial construction and land |
14,171 |
4,245 |
17,117 |
|||||
All other loan types |
9,468 |
11,256 |
5,901 |
|||||
Total nonaccrual loans |
141,132 |
141,403 |
184,202 |
|||||
Total nonperforming loans |
141,190 |
141,462 |
184,297 |
|||||
Other real estate owned and repossessed assets |
27,355 |
26,231 |
18,232 |
|||||
Total nonperforming assets |
$168,545 |
$167,693 |
$202,529 |
|||||
Other Credit Quality Information: |
||||||||
Loans contractually past due 30 through 89 days and still accruing |
$13,186 |
$13,206 |
$9,514 |
|||||
Restructured loans not included in nonperforming assets |
1,247 |
1,196 |
-- |
|||||
Recorded balance of impaired loans |
132,911 |
141,697 |
191,769 |
|||||
Allowance for loan losses related to impaired loans |
24,312 |
33,640 |
49,560 |
|||||
Allowance for Loan Losses Summary: |
||||||||
Allowance at beginning of period |
$106,185 |
$107,132 |
$128,548 |
|||||
Net (charge-offs) recoveries: |
||||||||
Commercial and commercial real estate |
(8,439) |
(7,983) |
(5,312) |
|||||
Real estate – construction and land |
(17,605) |
(10,384) |
(8,448) |
|||||
Total consumer-oriented loans |
(1,120) |
(1,582) |
(69) |
|||||
Total net charge-offs |
(27,164) |
(19,949) |
(13,829) |
|||||
Provision for loan losses |
21,130 |
19,002 |
15,563 |
|||||
Allowance at end of period |
$100,151 |
$106,185 |
$130,282 |
|||||
Key Credit Ratios: |
||||||||
Nonperforming loans to total loans |
4.70% |
4.66% |
5.73% |
|||||
Nonperforming assets to total loans plus repossessed property |
5.55% |
5.48% |
6.27% |
|||||
Nonperforming assets to total assets |
3.73% |
3.81% |
4.41% |
|||||
Annualized net charge-offs to average total loans |
3.59% |
2.59% |
1.71% |
|||||
Allowance to total loans at end of period |
3.33% |
3.50% |
4.05% |
|||||
Allowance to nonperforming loans |
70.93% |
75.06% |
70.69% |
|||||
30 – 89 days past due to total loans |
0.44% |
0.44% |
0.30% |
|||||
TAYLOR CAPITAL GROUP, INC. FUNDING LIABILITIES (unaudited) (dollars in thousands) |
|||||||||||||
The following table presents the distribution of the Company's average deposit account balances for the periods indicated: |
|||||||||||||
For the Quarter Ended |
|||||||||||||
March 31, 2010 |
December 31, 2009 |
March 31, 2009 |
|||||||||||
Average Balance |
Percent of Deposits |
Average Balance |
Percent of Deposits |
Average Balance |
Percent of Deposits |
||||||||
In-market deposits: |
|||||||||||||
Noninterest-bearing deposits |
$606,604 |
20.8% |
$640,590 |
21.5% |
$519,187 |
16.5% |
|||||||
NOW accounts |
243,649 |
8.3 |
224,787 |
7.5 |
230,573 |
7.3 |
|||||||
Savings deposits |
41,050 |
1.4 |
41,198 |
1.4 |
42,139 |
1.3 |
|||||||
Money market accounts |
457,534 |
15.7 |
451,953 |
15.2 |
385,817 |
12.2 |
|||||||
Customer certificates |
779,963 |
26.7 |
768,733 |
25.8 |
862,203 |
27.4 |
|||||||
CDARS time deposits |
124,558 |
4.3 |
132,231 |
4.4 |
28,258 |
0.9 |
|||||||
Public time deposits |
74,376 |
2.6 |
73,916 |
2.5 |
69,236 |
2.2 |
|||||||
Total in-market deposits |
2,327,734 |
79.8 |
2,333,408 |
78.3 |
2,137,413 |
67.8 |
|||||||
Out-of-market deposits: |
|||||||||||||
Brokered money market deposits |
7,033 |
0.2 |
8,601 |
0.3 |
48,701 |
1.6 |
|||||||
Out-of-local-market certificates of deposit |
85,822 |
2.9 |
89,480 |
3.0 |
121,909 |
3.9 |
|||||||
Brokered certificates of deposit |
498,665 |
17.1 |
549,588 |
18.4 |
844,125 |
26.7 |
|||||||
Total out-of-market deposits |
591,520 |
20.2 |
647,669 |
21.7 |
1,014,735 |
32.2 |
|||||||
Total deposits |
$2,919,254 |
100.0% |
$2,981,077 |
100.0% |
$3,152,148 |
100.0% |
|||||||
The following table sets forth the period end balances of total deposits as of each of the dates indicated below, as well as categorizes the Company's deposits as "in-market" and "out-of-market" deposits: |
||||||||||
Mar. 31, |
Dec. 31, |
Mar. 31, |
||||||||
In-market deposits: |
||||||||||
Noninterest-bearing deposits |
$587,402 |
$659,146 |
$541,895 |
|||||||
NOW accounts |
227,981 |
307,025 |
234,028 |
|||||||
Savings accounts |
40,903 |
41,479 |
42,147 |
|||||||
Money market accounts |
483,209 |
438,080 |
419,286 |
|||||||
Customer certificates of deposit |
784,108 |
775,663 |
844,737 |
|||||||
CDARS time deposits |
163,025 |
116,256 |
53,717 |
|||||||
Public time deposits |
75,170 |
68,763 |
75,143 |
|||||||
Total in-market deposits |
2,361,798 |
2,406,412 |
2,210,953 |
|||||||
Out-of-market deposits: |
||||||||||
Brokered money market deposits |
6,739 |
7,338 |
30,203 |
|||||||
Out-of-local-market certificates of deposit |
105,384 |
79,015 |
119,625 |
|||||||
Brokered certificates of deposit |
483,799 |
484,035 |
786,872 |
|||||||
Total out-of-market deposits |
595,922 |
570,388 |
936,700 |
|||||||
Total deposits |
$2,957,720 |
$2,976,800 |
$3,147,653 |
|||||||
TAYLOR CAPITAL GROUP, INC. RECONCILIATION OF U.S. GAAP FINANCIAL MEASURES (unaudited) (dollars in thousands) |
|||||||
The following, as of the dates indicated, reconciles the loss before income taxes to pre-tax, pre-provision earnings from core operations. |
|||||||
Mar. 31, 2010 |
Dec. 31, 2009 |
Mar. 31, 2009 |
|||||
Loss before income taxes |
$ (10,441) |
$ (3,676) |
$ (4,039) |
||||
Add back (subtract): |
|||||||
Provision for loan losses |
21,130 |
19,022 |
15,563 |
||||
Nonperforming asset expense |
4,938 |
8,453 |
754 |
||||
Gain on investment securities |
(1,433) |
(8,958) |
(664) |
||||
Pre-tax, pre-provision earnings from core operations |
$ 14,194 |
$ 14,841 |
$ 11,614 |
||||
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practice within the banking industry. Management uses certain non-GAAP financial measures to evaluate the Company's financial performance and has provided the non-GAAP measure of pre-tax, pre-provision earnings from core operations. In this non-GAAP financial measure, the provision of loan losses, nonperforming asset expense and certain non-recurring items, such as gains and losses on investment securities, are excluded from the determination of operating results. Management believes that this measure is useful because it provides a more comparable basis for evaluating financial performance from core operations period to period. |
|||||||
Taylor Capital Group, Inc. |
||||||||||
Summary of Key Financial Data |
||||||||||
Dollars in Thousands |
||||||||||
Unaudited |
||||||||||
2010 |
2009 |
|||||||||
First |
Fourth |
Third |
Second |
First |
||||||
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
||||||
Condensed Income Data: |
||||||||||
Net interest income |
$ 33,467 |
$ 32,810 |
$ 32,375 |
$ 30,380 |
$ 27,346 |
|||||
Provision for loan losses |
21,130 |
19,002 |
15,539 |
39,507 |
15,563 |
|||||
Total noninterest income |
4,374 |
12,735 |
3,376 |
12,137 |
5,343 |
|||||
Total noninterest expense |
27,152 |
30,219 |
22,516 |
23,707 |
21,165 |
|||||
Loss before income taxes |
(10,441) |
(3,676) |
(2,304) |
(20,697) |
(4,039) |
|||||
Income tax expense (benefit) |
306 |
(647) |
144 |
2,558 |
(1,221) |
|||||
Net loss |
(10,747) |
(3,029) |
(2,448) |
(23,255) |
(2,818) |
|||||
Preferred dividends and discounts |
(2,887) |
(2,880) |
(2,873) |
(2,868) |
(2,862) |
|||||
Net loss applicable to common shareholders |
$ (13,634) |
$ (5,909) |
$ (5,321) |
$ (26,123) |
$ (5,680) |
|||||
Per Share Data: |
||||||||||
Basic loss per common share |
$ (1.30) |
$ (0.56) |
$ (0.51) |
$ (2.49) |
$ (0.54) |
|||||
Diluted loss per common share |
(1.30) |
(0.56) |
(0.51) |
(2.49) |
(0.54) |
|||||
Book value per common share |
8.54 |
9.02 |
11.78 |
10.24 |
13.85 |
|||||
Weighted average shares-basic |
10,515,668 |
10,504,027 |
10,502,844 |
10,492,789 |
10,471,516 |
|||||
Weighted average shares-diluted |
10,515,668 |
10,504,027 |
10,502,844 |
10,492,789 |
10,471,516 |
|||||
Shares outstanding-end of period |
11,076,197 |
11,076,707 |
11,078,011 |
11,081,429 |
11,093,349 |
|||||
Performance Ratios (annualized): |
||||||||||
Loss on average assets |
-0.96% |
-0.28% |
-0.22% |
-2.04% |
-0.25% |
|||||
Loss on average equity |
-16.25% |
-4.19% |
-3.58% |
-30.20% |
-3.69% |
|||||
Efficiency ratio (1) |
74.58% |
82.59% |
63.65% |
67.89% |
66.09% |
|||||
Average Balance Sheet Data (2): |
||||||||||
Total assets |
$ 4,479,495 |
$ 4,390,123 |
$ 4,543,191 |
$ 4,570,534 |
$ 4,434,293 |
|||||
Investments |
1,351,711 |
1,220,768 |
1,325,722 |
1,341,763 |
1,150,587 |
|||||
Cash equivalents |
294 |
1,118 |
2,637 |
527 |
2,473 |
|||||
Loans |
3,022,833 |
3,079,862 |
3,180,992 |
3,187,740 |
3,238,537 |
|||||
Total interest-earning assets |
4,374,838 |
4,301,748 |
4,509,351 |
4,530,030 |
4,391,597 |
|||||
Interest-bearing deposits |
2,312,650 |
2,340,487 |
2,526,961 |
2,580,403 |
2,632,961 |
|||||
Borrowings |
1,245,568 |
1,058,628 |
1,074,533 |
1,027,010 |
909,565 |
|||||
Total interest-bearing liabilities |
3,558,218 |
3,399,115 |
3,601,494 |
3,607,413 |
3,542,526 |
|||||
Noninterest-bearing deposits |
606,604 |
640,590 |
598,760 |
578,020 |
519,187 |
|||||
Total stockholders' equity |
264,588 |
289,178 |
273,504 |
307,977 |
305,111 |
|||||
Tax Equivalent Net Interest Margin: |
||||||||||
Net interest income as stated |
$ 33,467 |
$ 32,810 |
$ 32,375 |
$ 30,380 |
$ 27,346 |
|||||
Add: Tax equivalent adjust.-investment (3) |
662 |
681 |
732 |
763 |
768 |
|||||
Tax equivalent adjust.-loans (3) |
25 |
29 |
29 |
29 |
29 |
|||||
Tax equivalent net interest income |
$ 34,154 |
$ 33,520 |
$ 33,136 |
$ 31,172 |
$ 28,143 |
|||||
Net interest margin without tax adjust. |
3.09% |
3.03% |
2.86% |
2.69% |
2.51% |
|||||
Net interest margin - tax equivalent (3) |
3.15% |
3.10% |
2.92% |
2.76% |
2.58% |
|||||
Yield on earning assets without tax adjust. |
4.88% |
4.99% |
4.94% |
4.93% |
5.00% |
|||||
Yield on earning assets - tax equivalent (3) |
4.95% |
5.05% |
5.01% |
5.00% |
5.07% |
|||||
Yield on interest-bearing liabilities |
2.21% |
2.47% |
2.61% |
2.82% |
3.09% |
|||||
Net interest spread - without tax adjust. |
2.67% |
2.52% |
2.34% |
2.11% |
1.91% |
|||||
Net interest spread - tax equivalent (3) |
2.74% |
2.58% |
2.40% |
2.18% |
1.98% |
|||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||
2010 |
2009 |
2009 |
2009 |
2009 |
||||||
Condensed Balance Sheet Data: |
||||||||||
Investment securities |
$ 1,408,240 |
$ 1,271,271 |
$ 1,306,098 |
$ 1,306,174 |
$ 1,321,605 |
|||||
Loans |
3,006,771 |
3,035,328 |
3,114,254 |
3,177,739 |
3,214,096 |
|||||
Allowance for loan losses |
100,151 |
106,185 |
107,132 |
132,927 |
130,282 |
|||||
Total assets |
4,514,180 |
4,403,502 |
4,485,081 |
4,548,325 |
4,596,701 |
|||||
Total deposits |
2,957,720 |
2,976,800 |
3,052,729 |
3,204,574 |
3,147,653 |
|||||
Total borrowings |
1,250,830 |
1,106,971 |
1,086,892 |
974,344 |
1,060,212 |
|||||
Total stockholders' equity |
253,800 |
258,806 |
289,020 |
271,635 |
311,425 |
|||||
Asset Quality Ratios: |
||||||||||
Nonperforming loans |
$ 141,190 |
$ 141,462 |
$ 176,020 |
$ 189,816 |
$ 184,297 |
|||||
Nonperforming assets |
168,545 |
167,693 |
196,333 |
212,886 |
202,529 |
|||||
Allowance for loan losses to total loans |
3.33% |
3.50% |
3.44% |
4.18% |
4.05% |
|||||
Allowance for loan losses to nonperforming loans |
70.93% |
75.06% |
60.86% |
70.03% |
70.69% |
|||||
Nonperforming assets to total loans plus repossessed property |
||||||||||
5.55% |
5.48% |
6.26% |
6.65% |
6.27% |
||||||
Capital Ratios (Taylor Capital Group, Inc.): |
||||||||||
Total Capital (to Risk Weighted Assets) |
12.34% |
12.72% |
12.75% |
12.51% |
12.87% |
|||||
Tier I Capital (to Risk Weighted Assets). |
9.29% |
9.79% |
9.86% |
9.67% |
10.07% |
|||||
Leverage (to average assets) |
7.07% |
7.60% |
7.47% |
7.52% |
8.29% |
|||||
Footnotes: |
||||||||||
(1) Efficiency ratio is determined by dividing noninterest expense by an amount equal to net interest income plus noninterest income, adjusted for gains or losses from investment securities. |
||||||||||
(2) Average balances are daily averages. |
||||||||||
(3) Adjustment reflects tax-exempt interest income on an equivalent before-tax basis assuming a tax rate of 35.0%. |
||||||||||
SOURCE Taylor Capital Group, Inc.
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