C1 FINANCIAL INC ST. PETERSBURG, Fla., Jan. 28, 2016 /PRNewswire/ -- C1 Financial, Inc. (NYSE: BNK) today reported net income of $1.4 million, or $0.09 per diluted common share for the fourth quarter of 2015 ("4Q15"), compared to net income of $5.0 million, or $0.31 per diluted common share for the third quarter of 2015 ("3Q15"), and net income of $1.3 million, or $0.08 per diluted common share for the fourth quarter of 2014 ("4Q14").
On November 9, 2015, C1 Financial and its wholly owned bank subsidiary, C1 Bank, entered into a definitive agreement and plan of merger ("Agreement") with Bank of the Ozarks, Inc. ("OZRK") and its wholly owned bank subsidiary, Bank of the Ozarks ("Ozarks Bank"), whereby, subject to the terms and conditions of the Agreement, OZRK will acquire C1 Financial and C1 Bank in an all-stock transaction valued at approximately $402.5 million, or approximately $25.00 per share of C1 Financial common stock, subject to potential adjustments as described in the Agreement. Upon the closing of the transaction, C1 Financial will merge into OZRK and C1 Bank will merge into Ozarks Bank, with each of OZRK and Ozarks Bank to continue as the surviving entity, respectively. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and approval by C1 Financial shareholders and are described in the Agreement. Although there can be no assurance, the transaction is expected to close in the first half of 2016.
FOURTH QUARTER SUMMARY
4Q15 results were impacted by the following:
1. We originated $102 million in new loans in the quarter, resulting in C1
Bank originated loans outstanding up $68 million (+6%) from the prior
quarter and $323 million (+38%) year-over-year. Loan originations for the
year were $549 million, up $60 million (+12%) compared to last year.
Overall loans outstanding (including acquired loans) were $1.443 billion
at the end of 4Q15 (up 4% from the prior quarter and up 21%
year-over-year);
2. Total deposits grew $14 million (+1.1%) compared to the prior quarter and
9.5% year-over-year. Quarterly growth was primarily due to higher time
deposits and a slight increase in core deposits, while year-over-year
growth was driven by core deposits, which were up $144 million (+17%). At
the end of 4Q15, 3Q15 and 4Q14, core deposits were 78.1%, 78.9% and 73.2%
of total deposits, respectively, and noninterest-bearing deposits were
25.1%, 26.6% and 23.9% of total deposits, respectively. These deposit mix
changes impacted our cost of total deposits, which grew 1 basis point
("bps") to 0.47% for 4Q15 when compared to 3Q15, but was down 3 bps when
compared to 4Q14;
3. Adjusted net interest margin (a non-GAAP measure which excludes the
impact of purchase accounting accretion income) declined from 4.64% for
3Q15 to 4.40% for 4Q15, reflecting a normalized level of loan fees and
reversal of interest income on nonaccrual loans, and was up from 4.05%
for 4Q14, reflecting the deployment of excess cash during the year. On a
GAAP basis, net interest margin was 4.51% for 4Q15, compared to 4.75% for
3Q15 and 4.24% for 4Q14;
4. Annualized revenue per employee was $369 thousand in 4Q15, compared to
$367 thousand in 3Q15 and $307 thousand in 4Q14, and average assets per
employee were $7.3 million in 4Q15, compared to $6.9 million in 3Q15 and
$6.4 million in 4Q14, as a result of our efforts to improve our
efficiency through the use of technology;
5. In 4Q15, total nonperforming assets increased $21.0 million when compared
to the previous quarter (+$19.2 million in nonaccrual loans and +$1.8
million in other estate owned ("OREO")), and increased $8.5 million
(+$15.1 million in nonaccrual loans and -$6.6 million in OREO) when
compared to 4Q14. The increase in nonaccrual loans was primarily due to
two commercial real estate loans to a Brazilian borrower. Our Texas Ratio
(a non-GAAP measure) was 30.9% at the end of 4Q15, compared to 21.0% at
the end of 3Q15 and 29.3% at the end of 4Q14;
6. C1 Bank originated nonperforming assets accounted for 35% of our total
nonperforming assets (with C1 Bank originated nonperforming loans equal
to 1.83% of C1 Bank originated loans outstanding). Our allowance for loan
losses was 0.56% of total loans at the end of 4Q15 and 0.57% at the end
of 3Q15, up from 0.45% at the end of 4Q14 (primarily driven by an
increase in general reserves);
7. Our headcount ended the quarter at 229, down from 239 at the end of 3Q15
and 238 at the end of 4Q14, as a result of our continuing headcount
efficiency initiatives and deployment of technology;
8. Net income for 4Q15 included after-tax merger related expenses of $2.6
million incurred pursuant to the Agreement with OZRK and $100 thousand
income tax expense related to BOLI policies surrendered in 2015.
ASSETS
Total assets at the end of 4Q15 were $1.726 billion, $13.0 million higher (+0.8%) than at the end of 3Q15, primarily funded by deposit growth ($13.9 million).
LOANS
Total loans at the end of 4Q15 were $1.443 billion, up $52.4 million (+3.8%) from the end of 3Q15. Loan growth in 4Q15 was mainly driven by loan originations of $101.7 million and funding of unfunded commitments, partially offset by loan prepayments in the C1 Bank originated loan portfolio, and loans paying off in both the C1 Bank originated loan portfolio and in the acquired portfolio. The outstanding balance of C1 Bank originated loans grew $68.0 million (+6.2%) during 4Q15, while the outstanding balance of acquired loans decreased $15.6 million (-5.3%) to $279.4 million at the end of 4Q15. At the end of 4Q15, C1 Bank originated loans represented 81% of the loan portfolio, up from 79% at the end of 3Q15.
DEPOSITS
Total deposits at the end of 4Q15 were $1.278 billion, an increase of $13.9 million (+1.1%) from the end of 3Q15. Core deposits were $998.2 million, or 78.1% of total deposits at the end of 4Q15, compared to $997.8 million, or 78.9% of total deposits at the end of 3Q15. This deposit mix change impacted our cost of total deposits, which was 0.47% in 4Q15 and 0.46% in 3Q15.
ASSET QUALITY
Nonperforming assets totaled $64.3 million at the end of 4Q15, increasing $21.0 million (+48.6%) when compared to the end of 3Q15. The higher amount in 4Q15 was due to an increase of $19.2 million in nonaccrual loans (primarily due to two commercial real estate loans to a Brazilian borrower) and $1.8 million in OREO balances. As a percentage of total assets, nonperforming assets were 3.73% and 2.53% at the end of 4Q15 and 3Q15, respectively, while our Texas Ratio was 30.9% and 21.0% at the end of 4Q15 and 3Q15, respectively. At the end of 4Q15, $22.8 million (35.4%) of total nonperforming assets were related to loans originated by C1 Bank, compared to $2.0 million (4.6%) at the end of 3Q15.
As of December 31, 2015, a loan to a second Brazilian borrower was past due 81 days and we have been informed that the borrower is in the process of making the payments to bring the loan current. If the past due payments are not received as expected, our nonperforming assets would increase to 4.71% of total assets and our Texas Ratio would increase to 39.1% at the end of 4Q15.
Total recoveries of $474 thousand, net of charge-offs of $93 thousand, resulted in net recoveries of $381 thousand in 4Q15 (0.11% of total average loans on an annualized basis as compared to 0.09% for 3Q15). Net recoveries reflected our continued effort to collect deficiencies and a lower level of charge-offs, and provided a $282 thousand reversal of provision for loan losses after covering the allowance for loan losses required for net loan growth.
Our allowance for loan losses at the end of 4Q15 was $8.0 million (representing 0.56% of total loans) as compared to $7.9 million (representing 0.57% of total loans) at the end of 3Q15. On a non-GAAP basis (including remaining loan discount from acquired performing loans), the allowance plus discount amount totaled $10.7 million (representing 0.74% of total loans) at the end of 4Q15, compared to $10.8 million (representing 0.77% of total loans) at the end of 3Q15.
NET INTEREST INCOME AND MARGIN
Net interest income was $17.7 million for 4Q15 and $18.0 million for 3Q15. Net interest margin for 4Q15 declined 24 bps to 4.51% from 4.75% in 3Q15, mainly driven by a lower yield on average earning assets (primarily related to a normalized level of loan fees and reversal of interest income on nonaccrual loans). Adjusted net interest margin (which excludes the effect of purchase accounting) was 4.40% for 4Q15 and 4.64% in 3Q15.
Our excess cash (defined as our available cash above our target liquidity level - See explanation of non-GAAP financial measures) was $5.2 million at the end of 4Q15, while our average excess cash was $37.4 million for 4Q15, $26.8 million higher than for 3Q15.
NONINTEREST INCOME
Noninterest income for 4Q15 totaled $1.8 million, $364 thousand less when compared to 3Q15. The decrease was primarily due to a $670 thousand gain on the early redemption of long-term Federal Home Loan Bank ("FHLB") advances (included in other noninterest income) in 3Q15, which was partially offset by a $247 thousand increase in gains on sales of loans (due to a higher volume of Small Business Administration ("SBA") loans sold in 4Q15).
NONINTEREST EXPENSE & TAXES
Noninterest expense totaled $15.7 million in 4Q15, $3.7 million more when compared to 3Q15. The increase was primarily due to higher salaries and employee benefits of $1.2 million (mainly driven by bonus expense) and pre-tax merger related expenses of $2.6 million pursuant to the Agreement with OZRK.
Our income tax expense was $2.6 million for 4Q15 and $3.2 million for 3Q15. The effective tax rate for 4Q15 was 64.9%, which reflected nondeductible merger related expenses relating to the Agreement with OZRK and $100 thousand income tax expense related to BOLI policies surrendered during 2015. The effective tax rate for 3Q15 was 39.3%.
EFFICIENCY
Our efficiency ratio was 80.7% in 4Q15, higher than the 59.4% in 3Q15 primarily due to the increase in noninterest expenses (mainly driven by merger related expense). We also closely track annualized revenue per employee and average assets per employee, as measures of efficiency. Annualized revenue per employee was $369 thousand in 4Q15, compared to $367 thousand in 3Q15, and average assets per employee were $7.3 million in 4Q15, compared to $6.9 million in 3Q15, as a result of our efforts to improve our efficiency through the use of technology.
NET INCOME
Net income was $1.4 million for 4Q15, compared to $5.0 million for 3Q15. This corresponded to a return on average assets of 0.32% and 1.18% for 4Q15 and 3Q15, respectively, and a return on average equity of 2.79% and 10.02% for 4Q15 and 3Q15, respectively.
CAPITAL
Our consolidated Tier 1 leverage ratio was 11.55% and total risk-based capital ratio was 13.85% as of the end of 4Q15, reflecting that we remained well capitalized under Interim Final Basel III rules. Additional capital ratios are presented in the financial tables.
OTHER EVENTS DURING 4Q15
In November 2015, C1 Bank opened in Ft. Lauderdale, its 32(nd) banking center.
C1 Financial, Inc. Information
Our name expresses our ideals to put our Clients 1(st) and our Community 1(st). We are focused on serving the needs of entrepreneurs, tailoring a wide range of relationship banking services to entrepreneurs and their families, including commercial loans and a full line of depository products. We are based in St. Petersburg, Florida and operate from 32 banking centers and one loan production office on the West Coast of Florida and in Miami-Dade, Broward and Orange Counties. As of September 30, 2015, we were the 17(th) largest bank headquartered in the state of Florida by assets and the 16(th) largest by equity, having grown both organically and through acquisitions. Additional information is available at www.c1bank.com.
Forward-Looking Statements
This communication contains certain forward-looking information about C1 and OZRK that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "continue," "could," "future" or the negative of those terms or other words of similar meaning. These forward-looking statements include, without limitation, statements relating to the terms and closing of the proposed transaction between C1 and OZRK, the proposed impact of the merger on OZRK's financial results, including any expected increase in OZRK's book value and tangible book value per common share and any expected increase in diluted earnings per common share, acceptance by C1's customers of OZRK's products and services, the opportunities to enhance market share in certain markets, market acceptance of OZRK generally in new markets, and the integration of C1's operations. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other "forward-looking" information about C1 and OZRK. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond the parties' control, including the parties' ability to consummate the transaction or satisfy the conditions to the completion of the transaction, including the receipt of shareholder approval, the receipt of regulatory approvals required for the transaction on the terms expected or on the anticipated schedule; the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction; the possibility that any of the anticipated benefits of the proposed merger will not be realized or will not be realized within the expected time period; the risk that integration of C1's operations with those of OZRK will be materially delayed or will be more costly or difficult than expected; the failure of the proposed merger to close for any other reason; the effect of the announcement of the merger on customer relationships and operating results (including, without limitation, difficulties in maintaining relationships with employees or customers); dilution caused by OZRK's issuance of additional shares of its common stock in connection with the merger; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the diversion of management time on transaction related issues; general competitive, economic, political and market conditions and fluctuations; changes in the regulatory environment; changes in the economy affecting real estate values; C1's ability to achieve loan and deposit growth; projected population and income growth in C1's targeted market areas; volatility and direction of market interest rates and a weakening of the economy which could materially impact credit quality trends and the ability to generate loans; and the other factors described in C1's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and in its most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") or described in OZRK's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and in its most recent Quarterly Report on Form 10-Q filed with the SEC. C1 and OZRK assume no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.
ADDITIONAL INFORMATION
This communication is being made in respect of the proposed merger transaction involving C1 Financial, Inc. ("C1") and Bank of the Ozarks, Inc. ("OZRK"). This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. In connection with the proposed merger, OZRK has filed with the SEC a registration statement on Form S-4 (Registration Statement No. 333-208877) that includes a prospectus of the Company and a proxy statement of C1. C1 and OZRK also plan to file other documents with the SEC regarding the proposed merger transaction and a definitive proxy statement/prospectus will be mailed to shareholders of C1. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The proxy statement/prospectus, as well as other filings containing information about C1 and OZRK will be available without charge, at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, when available, without charge, from C1's website at https://www.c1bank.com (in the case of documents filed by C1) and on OZRK's website at http://www.bankozarks.com under the Investor Relations tab (in the case of documents filed by OZRK).
C1 and OZRK, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of C1 in respect of the proposed merger transaction. Certain information about the directors and executive officers of C1 is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 20, 2015, its proxy statement for its 2015 annual meeting of shareholders, which was filed with the SEC on March 10, 2015, and its Current Reports on Form 8-K, which were filed with the SEC on July 1, 2015 and September 14, 2015. Certain information about the directors and executive officers of OZRK is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 27, 2015 and its proxy statement for its 2015 annual meeting of shareholders, which was filed with the SEC on March 25, 2015. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the proxy statement/prospectus and other relevant documents filed with the SEC when they become available.
C1 Financial, Inc.
Consolidated Balance Sheets - Unaudited
(Dollars in thousands, except per share data)
December 31, September 30, December 31,
2015 2015 2014
---- ---- ----
ASSETS
Cash and cash equivalents $137,259 $175,289 $185,703
Time deposits in other financial institutions 248 247 -
Federal Home Loan Bank stock, at cost 11,668 11,668 9,224
Loans receivable, net 1,429,131 1,376,617 1,179,056
Premises and equipment, net 65,139 63,613 64,075
Other real estate owned, net 28,330 26,490 34,916
Bank-owned life insurance 37,275 43,018 43,907
Accrued interest receivable 4,641 4,269 3,490
Core deposit intangible 699 754 987
Prepaid expenses 5,613 4,778 5,243
Other assets 5,517 5,740 10,090
----- ----- ------
Total assets $1,725,520 $1,712,483 $1,536,691
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest bearing $321,034 $336,361 $278,543
Interest bearing 957,231 928,019 888,959
------- ------- -------
Total deposits 1,278,265 1,264,380 1,167,502
Federal Home Loan Bank advances 242,000 242,000 178,500
Other liabilities 4,274 6,543 4,051
----- ----- -----
Total liabilities 1,524,539 1,512,923 1,350,053
--------- --------- ---------
Stockholders' equity
Common stock, par value $1.00; 100,000,000 shares authorized 16,101 16,101 16,101
Additional paid-in capital 148,122 148,122 148,122
Retained earnings 36,758 35,337 22,415
Accumulated other comprehensive income - - -
--- --- ---
Total stockholders' equity 200,981 199,560 186,638
------- ------- -------
Total liabilities and stockholders' equity $1,725,520 $1,712,483 $1,536,691
========== ========== ==========
Period-end shares outstanding 16,100,966 16,100,966 16,100,966
Book value per share $12.48 $12.39 $11.59
C1 Financial, Inc.
Consolidated Income Statements - Unaudited
(Dollars in thousands, except per share data)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
December 31, September 30, December 31, December 31, December 31,
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Interest income
Loans, including fees $20,058 $20,340 $16,870 $76,861 $63,351
Securities 3 3 3 12 62
Federal funds sold and other 248 203 285 866 897
--- --- --- --- ---
Total interest income 20,309 20,546 17,158 77,739 64,310
------ ------ ------ ------ ------
Interest expense
Savings and interest-bearing demand deposits 697 654 582 2,584 2,154
Time deposits 844 795 890 3,100 3,809
Federal Home Loan Bank advances 1,034 1,057 755 3,895 2,607
Other borrowings - - 12 - 56
--- --- --- --- ---
Total interest expense 2,575 2,506 2,239 9,579 8,626
----- ----- ----- ----- -----
Net interest income 17,734 18,040 14,919 68,160 55,684
Provision (reversal of provision) for loan losses (282) (67) (1) 1,118 4,814
---- --- --- ----- -----
Net interest income after provision for loan losses 18,016 18,107 14,920 67,042 50,870
------ ------ ------ ------ ------
Noninterest income
Gains on sales of securities - - - - 241
Gains on sales of loans 326 79 209 1,219 2,532
Service charges and fees 633 602 582 2,383 2,240
Bargain purchase gain - - - - 48
Gains on sales of other real estate owned, net 169 177 329 742 1,049
Bank-owned life insurance 267 276 42 893 160
Mortgage banking fees - - - - 47
Gains (losses) on disposals of premises and equipment, net - - (4) 2,590 (16)
Other noninterest income 355 980 396 1,974 1,437
--- --- --- ----- -----
Total noninterest income 1,750 2,114 1,554 9,801 7,738
----- ----- ----- ----- -----
Noninterest expense
Salaries and employee benefits 6,470 5,276 4,834 22,192 18,360
Occupancy expense 1,347 1,388 1,195 5,307 4,505
Furniture and equipment 714 779 712 2,989 2,666
Regulatory assessments 405 349 400 1,505 1,467
Network services and data processing 1,186 1,075 995 4,425 3,819
Printing and office supplies 86 54 119 269 389
Postage and delivery 78 78 74 320 255
Advertising and promotion 868 873 912 3,620 3,546
Other real estate owned related expense, net 371 468 543 1,930 2,168
Other real estate owned - valuation allowance expense 206 102 2,722 374 3,331
Amortization of intangible assets 55 70 86 288 498
Professional fees 521 673 746 2,401 2,920
Loan collection expenses (43) 86 (5) 130 458
Merger related expense 2,626 - - 2,626 -
Other noninterest expense 830 701 672 2,996 2,850
--- --- --- ----- -----
Total noninterest expense 15,720 11,972 14,005 51,372 47,232
------ ------ ------ ------ ------
Income before income taxes 4,046 8,249 2,469 25,471 11,376
Income tax expense 2,625 3,244 1,127 11,128 4,652
----- ----- ----- ------ -----
Net Income $1,421 $5,005 $1,342 $14,343 $6,724
====== ====== ====== ======= ======
Weighted average shares outstanding - basic 16,100,966 16,100,966 16,100,966 16,100,966 14,112,443
Weighted average shares outstanding - diluted 16,100,966 16,100,966 16,100,966 16,100,966 14,112,443
Basic net income per share $0.09 $0.31 $0.08 $0.89 $0.48
Diluted net income per share 0.09 0.31 0.08 0.89 0.48
C1 Financial, Inc.
Average Balance Sheets - Unaudited
(Dollars in thousands)
For the Three Months Ended
--------------------------
December 31, 2015 September 30, 2015 December 31, 2014
----------------- ------------------ -----------------
Average Balances (1) Income/ Expense Yields/ Rates Average Balances (1) Income/ Expense Yields/ Rates Average Balances (1) Income/ Expense Yields/ Rates
------------------- --------------- ------------- ------------------- --------------- ------------- ------------------- --------------- -------------
Interest-earning assets
Loans receivable (2) $1,402,691 $20,058 5.67% $1,374,425 $20,340 5.87% $1,145,230 $16,870 5.84%
Securities available for sale and other securities 250 3 4.56% 250 3 4.56% 250 3 4.56%
Federal funds sold and balances at Federal Reserve Bank 145,588 108 0.29% 121,155 68 0.22% 240,126 168 0.28%
Time deposits in other financial institutions 248 1 0.41% 247 - 0.42% - - 0.00%
FHLB stock 11,506 139 4.83% 11,824 135 4.51% 9,446 117 4.89%
------ --- ------ --- ----- ---
Total interest-earning assets 1,560,283 20,309 5.16% 1,507,901 20,546 5.41% 1,395,052 17,158 4.88%
--------- ------ --------- ------ --------- ------
Noninterest-earning assets
Cash and due from banks 36,201 38,612 31,701
Other assets (3) 139,308 141,149 125,511
------- ------- -------
Total noninterest-earning assets 175,509 179,761 157,212
------- ------- -------
Total assets $1,735,792 $1,687,662 $1,552,264
========== ========== ==========
Interest-bearing liabilities
Interest-bearing deposits:
Time $279,752 844 1.20% $274,925 795 1.15% $324,347 890 1.09%
Money market 458,114 508 0.44% 443,152 490 0.44% 378,393 423 0.44%
Interest-bearing demand 179,415 168 0.37% 155,418 142 0.36% 142,370 137 0.38%
Savings 38,537 21 0.22% 38,921 22 0.22% 38,263 22 0.22%
------ --- ------ --- ------ ---
Total interest-bearing deposits 955,818 1,541 0.64% 912,416 1,449 0.63% 883,373 1,472 0.66%
Other interest-bearing liabilities:
FHLB advances 238,342 1,034 1.72% 245,847 1,057 1.71% 183,860 755 1.63%
Other borrowings - - 0.00% - - 0.00% 2,446 12 1.96%
--- --- --- --- ----- ---
Total interest-bearing liabilities 1,194,160 2,575 0.86% 1,158,263 2,506 0.86% 1,069,679 2,239 0.83%
--------- ----- --------- ----- --------- -----
Noninterest-bearing liabilities and stockholders'
equity:
Demand deposits 334,227 325,044 290,628
Other liabilities 5,214 6,127 4,687
Stockholders' equity 202,191 198,228 187,270
------- ------- -------
Total noninterest-bearing liabilities and stockholder's
equity 541,632 529,399 482,585
------- ------- -------
Total liabilities and stockholders' equity $1,735,792 $1,687,662 $1,552,264
========== ========== ==========
Interest rate spread (taxable-equivalent basis) 4.30% 4.55% 4.05%
Net interest income (taxable-equivalent basis) $17,734 $18,040 $14,919
======= ======= =======
Net interest margin (taxable-equivalent basis) 4.51% 4.75% 4.24%
Average interest-earning assets to interest-bearing
liabilities 130.7% 130.2% 130.4%
(1) Calculated using daily averages.
(2) Average loans are gross,
including nonaccrual loans and
overdrafts (net of deferred
loan fees and before the
allowance for loan losses).
Interest on loans includes net
deferred fees and costs, and
other loan fees of $1.4
million, $1.4 million and $748
thousand in the three months
ended December 31, 2015,
September 30, 2015 and December
31, 2014, respectively.
(3) Other assets include bank-owned
life insurance, tax lien
certificates, OREO, fixed
assets, interest receivable,
prepaid expense and others.
C1 Financial, Inc.
Average Balance Sheets - Unaudited
(Dollars in thousands)
For the Twelve Months Ended
---------------------------
December 31, 2015 December 31, 2014
----------------- -----------------
Average Balances (1) Income/ Expense Yields/ Rates Average Balances (1) Income/ Expense Yields/ Rates
------------------- --------------- ------------- ------------------- --------------- -------------
Interest-earning assets
Loans receivable (2) $1,318,460 $76,861 5.83% $1,085,832 $63,351 5.83%
Securities available for sale and other securities 250 12 4.56% 452 62 13.76%
Federal funds sold and balances at Federal Reserve Bank 141,308 367 0.26% 207,010 523 0.25%
Time deposits in other financial institutions 161 1 0.43% - - 0.00%
FHLB stock 11,164 498 4.47% 8,779 374 4.26%
------ --- ----- ---
Total interest-earning assets 1,471,343 77,739 5.28% 1,302,073 64,310 4.94%
--------- ------ --------- ------
Noninterest-earning assets
Cash and due from banks 37,298 39,209
Other assets (3) 145,724 122,203
------- -------
Total noninterest-earning assets 183,022 161,412
------- -------
Total assets $1,654,365 $1,463,485
========== ==========
Interest-bearing liabilities
Interest-bearing deposits:
Time $270,325 3,100 1.15% $350,592 3,809 1.09%
Money market 437,960 1,919 0.44% 351,844 1,526 0.43%
Interest-bearing demand 156,539 579 0.37% 142,588 542 0.38%
Savings 38,821 86 0.22% 38,323 86 0.22%
------ --- ------ ---
Total interest-bearing deposits 903,645 5,684 0.63% 883,347 5,963 0.68%
Other interest-bearing liabilities:
FHLB advances 228,724 3,895 1.70% 167,884 2,607 1.55%
Other borrowings - - 0.00% 2,860 56 1.96%
--- --- ----- ---
Total interest-bearing liabilities 1,132,369 9,579 0.85% 1,054,091 8,626 0.82%
--------- ----- --------- -----
Noninterest-bearing liabilities and stockholders' equity:
Demand deposits 321,401 250,268
Other liabilities 5,030 4,847
Stockholders' equity 195,565 154,279
------- -------
Total noninterest-bearing liabilities and stockholder's equity 521,996 409,394
------- -------
Total liabilities and stockholders' equity $1,654,365 $1,463,485
========== ==========
Interest rate spread (taxable-equivalent basis) 4.43% 4.12%
Net interest income (taxable-equivalent basis) $68,160 $55,684
======= =======
Net interest margin (taxable-equivalent basis) 4.63% 4.28%
Average interest-earning assets to interest-bearing liabilities 129.9% 123.5%
(1) Calculated using daily averages.
(2) Average loans are gross,
including nonaccrual loans and
overdrafts (net of deferred
loan fees and before the
allowance for loan losses).
Interest on loans includes net
deferred fees and costs, and
other loan fees of $4.9 million
and $2.4 million in the twelve
months ended December 31, 2015
and December 31, 2014,
respectively.
(3) Other assets include bank-owned
life insurance, tax lien
certificates, OREO, fixed
assets, interest receivable,
prepaid expense and others.
C1 Financial, Inc.
Selected Quarterly Financial Data - Unaudited
(In thousands, except per share and employee data)
4Q15 3Q15 2Q15 1Q15 4Q14
---- ---- ---- ---- ----
Statement of Income Data
Interest income $20,309 $20,546 $19,115 $17,769 $17,158
Interest expense 2,575 2,506 2,304 2,194 2,239
Net interest income 17,734 18,040 16,811 15,575 14,919
Provision (reversal of provision) for loan losses (282) (67) 1,276 191 (1)
Total noninterest income 1,750 2,114 4,335 1,602 1,554
Total noninterest expense 15,720 11,972 11,845 11,835 14,005
Income before income taxes 4,046 8,249 8,025 5,151 2,469
Income tax expense 2,625 3,244 3,282 1,977 1,127
Net income 1,421 5,005 4,743 3,174 1,342
Selected Performance Metrics
Return on average assets 0.32% 1.18% 1.18% 0.82% 0.34%
Return on average equity 2.79% 10.02% 9.88% 6.81% 2.84%
Efficiency ratio (1) 80.7% 59.4% 56.0% 68.9% 85.0%
Full-time equivalent employees at period end 229 239 247 244 238
Revenue per average number of employees (1) $369 $367 $384 $326 $307
Average assets per average number of employees (1) 7,324 6,888 6,594 6,541 6,414
Per Share Outstanding Data
Net earnings per share $0.09 $0.31 $0.29 $0.20 $0.08
Diluted net earnings per share $0.09 $0.31 $0.29 $0.20 $0.08
Weighted average shares 16,101 16,101 16,101 16,101 16,101
Weighted average shares - diluted 16,101 16,101 16,101 16,101 16,101
Book value per share $12.48 $12.39 $12.08 $11.79 $11.59
Tangible book value per share (1) $12.42 $12.33 $12.02 $11.72 $11.51
Common shares outstanding at period end 16,101 16,101 16,101 16,101 16,101
Market value per share at period end $24.21 $19.05 $19.38 $18.75 $18.29
Market range per share:
High 24.49 19.77 19.84 19.10 19.70
Low 18.40 17.66 17.81 16.25 15.98
Balance Sheet Data
Cash and cash equivalents $137,259 $175,289 $165,200 $182,824 $185,703
Other securities (included in Other assets in consolidated balance sheet) 250 250 250 250 250
Total loans 1,442,644 1,390,275 1,361,459 1,256,606 1,188,522
Loans originated by C1 Bank (Nonacquired) 1,163,212 1,095,247 1,046,227 925,511 840,275
Loans not originated by C1 Bank (Acquired) 279,432 295,028 315,232 331,095 348,247
Net deferred loan fees (5,482) (5,726) (5,599) (4,881) (4,142)
Loans receivable, gross (2) 1,437,162 1,384,549 1,355,860 1,251,725 1,184,380
Allowance for loan losses (8,031) (7,932) (7,675) (5,787) (5,324)
Loans receivable, net 1,429,131 1,376,617 1,348,185 1,245,938 1,179,056
Total assets 1,725,520 1,712,483 1,677,806 1,596,739 1,536,691
Total interest-bearing deposits 957,231 928,019 893,815 881,318 888,959
Total deposits 1,278,265 1,264,380 1,215,988 1,199,828 1,167,502
Borrowings 242,000 242,000 261,000 202,500 178,500
Federal Home Loan Bank 242,000 242,000 261,000 202,500 178,500
Total liabilities 1,524,539 1,512,923 1,483,251 1,406,927 1,350,053
Total stockholders' equity 200,981 199,560 194,555 189,812 186,638
Tangible stockholders' equity (1) 200,033 198,557 193,482 188,659 185,402
Selected Average Balance Sheet Data
Loans receivable, gross (2) $1,402,691 $1,374,425 $1,286,665 $1,207,295 $1,145,230
Securities available for sale and other securities 250 250 250 250 250
Earning assets 1,560,283 1,507,901 1,430,889 1,383,959 1,395,052
Total assets 1,735,792 1,687,662 1,615,468 1,576,419 1,552,264
Total interest-bearing deposits 955,818 912,416 860,494 884,979 883,373
Total deposits 1,290,045 1,237,460 1,185,325 1,186,076 1,174,001
Borrowings 238,342 245,847 233,065 197,000 186,306
Total stockholders' equity 202,191 198,228 192,611 189,054 187,270
Yields Earned and Rates Paid
Loans receivable, gross (2) 5.67% 5.87% 5.89% 5.90% 5.84%
Adjusted loans receivable, gross (1),(3) 5.57% 5.77% 5.79% 5.76% 5.65%
Securities available for sale and other securities 4.56% 4.56% 4.56% 4.56% 4.56%
Earning assets 5.16% 5.41% 5.36% 5.21% 4.88%
Total interest-bearing deposits 0.64% 0.63% 0.61% 0.64% 0.66%
Total deposits 0.47% 0.46% 0.44% 0.47% 0.50%
Adjusted total deposits (1),(4) 0.47% 0.46% 0.45% 0.48% 0.50%
Borrowings 1.72% 1.71% 1.72% 1.66% 1.63%
Total interest-bearing liabilities 0.86% 0.86% 0.85% 0.82% 0.83%
Net interest margin (NIM) 4.51% 4.75% 4.71% 4.56% 4.24%
Adjusted NIM (1),(5) 4.40% 4.64% 4.60% 4.41% 4.05%
Capital Ratios
Total capital to risk-weighted assets (6) 13.85% 14.04% 13.60% 14.01% 14.74%
Tier 1 capital to risk-weighted assets (6) 13.32% 13.51% 13.08% 13.59% 14.33%
Common equity tier 1 capital to risk-weighted assets (6) 13.32% 13.51% 13.08% 13.59% N/A
Tier 1 leverage ratio (6) 11.55% 11.79% 12.01% 12.01% 11.95%
Tangible Equity / Tangible Assets (1) 11.60% 11.60% 11.54% 11.82% 12.07%
Equity / Assets 11.65% 11.65% 11.60% 11.89% 12.15%
Average Equity / Average Assets 11.65% 11.75% 11.92% 11.99% 12.06%
Asset Quality Data
Nonacquired nonperforming assets $22,761 $2,008 $340 $428 $487
Nonaccrual loans 21,285 2,008 340 428 443
Other real estate owned (OREO) 1,476 - - - 44
Nonacquired restructured loans (7) - - - - -
Nonacquired nonperforming assets to nonacquired loans plus OREO 1.95% 0.18% 0.03% 0.05% 0.06%
Acquired nonperforming assets $41,520 $41,256 $44,804 $49,597 $55,323
Nonaccrual loans 14,666 14,766 17,118 19,276 20,451
OREO 26,854 26,490 27,686 30,321 34,872
Acquired restructured loans 954 961 891 900 906
Acquired nonperforming assets to acquired loans plus OREO 13.56% 12.83% 13.07% 13.72% 14.44%
Total nonperforming assets $64,281 $43,264 $45,144 $50,025 $55,810
Nonaccrual loans 35,951 16,774 17,458 19,704 20,894
OREO 28,330 26,490 27,686 30,321 34,916
Total restructured loans 954 961 891 900 906
Total nonperforming assets to total loans plus OREO 4.37% 3.05% 3.25% 3.89% 4.56%
Net charge-offs (recoveries) $(381) $(324) $(612) $(272) $116
Charge-offs 93 94 69 4 552
Recoveries (474) (418) (681) (276) (436)
Asset Quality Ratios
Total nonperforming loans to loans receivable 2.49% 1.21% 1.28% 1.57% 1.76%
Total nonperforming assets to total assets 3.73% 2.53% 2.69% 3.13% 3.63%
Allowance for loan losses to nonperforming loans 22.34% 47.29% 43.96% 29.37% 25.48%
Annualized net charge-offs (recoveries) to total average loans (0.11)% (0.09)% (0.19)% (0.09)% 0.04%
Annualized nonacquired net charge-offs (recoveries) to average nonacquired loans (0.03)% (0.01)% (0.14)% (0.01)% 0.02%
Allowance for loan losses to total loans receivable 0.56% 0.57% 0.56% 0.46% 0.45%
Allowance for loan losses to nonacquired loans 0.69% 0.72% 0.73% 0.63% 0.63%
Texas ratio (8) 30.9% 21.0% 22.4% 25.7% 29.3%
Loan Composition
Nonacquired loans by type
1-4 family residential real estate $222,428 $181,431 $146,192 $132,253 $123,421
Owner occupied commercial real estate 140,330 154,748 136,789 139,780 124,067
Nonowner occupied commercial real estate 399,400 385,605 407,654 343,539 311,239
Secured by farmland commercial real estate 50,426 51,452 52,876 54,774 57,825
Multifamily commercial real estate 29,040 26,812 26,721 26,993 27,385
Construction 180,995 152,442 135,586 92,389 88,072
Commercial 52,717 63,972 63,190 57,683 58,809
Consumer 87,876 78,785 77,219 78,100 49,457
Acquired loans by type
1-4 family residential real estate $81,216 $85,807 $90,516 $96,758 $100,995
Owner occupied commercial real estate 84,084 89,642 95,445 99,859 107,169
Nonowner occupied commercial real estate 73,976 76,579 83,227 86,089 88,363
Secured by farmland commercial real estate 1,608 1,907 1,941 1,977 2,013
Multifamily commercial real estate 4,910 4,924 5,040 5,140 5,516
Construction 16,075 16,381 16,985 18,738 19,364
Commercial 10,918 12,968 14,556 14,704 16,551
Consumer 6,645 6,820 7,522 7,830 8,276
New loan originations (9) $101,728 $93,459 $177,090 $176,356 $139,009
Unfunded commitments (includes loans, unused lines and standby letters of credit) 176,400 210,389 237,877 245,051 189,049
Deposit Composition
Noninterest-bearing demand $321,034 $336,361 $322,173 $318,510 $278,543
Interest-bearing demand 182,212 177,688 148,724 146,873 140,598
Money market and savings 494,943 483,745 483,157 460,933 435,105
Retail time 243,521 246,913 247,700 251,825 286,979
Jumbo time (10) 36,555 19,673 14,234 21,687 26,277
(1) See below for the Generally Accepted
Accounting Principles (GAAP)
reconciliation and explanation of
non-GAAP financial measures.
(2) Total loans, net of deferred loan
fees and before the allowance for
loan losses. Yield on gross loans is
calculated on a 365-day basis and
may differ from regulatory "Uniform
Bank Performance Report" (UBPR)
yield, which annualizes quarterly
data by a factor of 4 (Section II,
UBPR User's Guide).
(3) Adjusted yield earned on loans
receivable excludes loan accretion
from the acquired loan portfolio.
(4) Adjusted rate paid on total deposits
excludes amortization of premium for
acquired time deposits.
(5) Adjusted net interest margin excludes
loan accretion from the acquired
loan portfolio, and amortization of
premiums for acquired time deposits
and Federal Home Loan Bank advances.
(6) Ratios are calculated under Interim
Final Basel III rules beginning in
1Q15. Ratios are calculated under
Basel I rules prior to 1Q15.
(7) Restructured loans include accruing
and nonaccrual troubled debt
restructurings. Nonaccrual
restructured loans are included in
nonaccrual loans.
(8) Texas ratio is calculated as
nonperforming assets divided by
tangible stockholders' equity plus
allowance for loan losses.
(9) New loan originations represent new
loan commitments during the periods
presented.
(10) Jumbo time deposits are deposits over
$250 thousand.
C1 Financial, Inc.
Generally Accepted Accounting Principles (GAAP) Reconciliation and
Explanation of Non-GAAP Financial Measures
(In thousands, except per share and employee data)
Some of the financial measures included in this earnings release are not measures of financial performance recognized by GAAP. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition and results of operations computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP measures that other companies use. The following tables provide a more detailed analysis of these non-GAAP financial measures.
4Q15 3Q15 2Q15 1Q15 4Q14
---- ---- ---- ---- ----
Loan loss reserves
------------------
Allowance for loan losses $8,031 $7,932 $7,675 $5,787 $5,324
Acquired performing loans discount 2,629 2,830 3,047 3,242 3,532
Total $10,660 $10,762 $10,722 $9,029 $8,856
======= ======= ======= ====== ======
Loans receivable, gross $1,442,644 $1,390,275 $1,361,459 $1,256,606 $1,188,522
Allowance for loan losses to total loans receivable 0.56% 0.57% 0.56% 0.46% 0.45%
Allowance plus performing loans discount to total loans receivable 0.74% 0.77% 0.79% 0.72% 0.75%
Efficiency ratio
----------------
Noninterest expense $15,720 $11,972 $11,845 $11,835 $14,005
======= ======= =======
Taxable-equivalent net interest income $17,734 $18,040 $16,811 $15,575 $14,919
======= ======= ======= ======= =======
Noninterest income $1,750 $2,114 $4,335 $1,602 $1,554
Gains on sales of securities - - - - -
--- --- --- --- ---
Adjusted noninterest income $1,750 $2,114 $4,335 $1,602 $1,554
====== ====== ====== ====== ======
Efficiency ratio 80.7% 59.4% 56.0% 68.9% 85.0%
Revenue and average assets per average number of employees
----------------------------------------------------------
Interest income $20,309 $20,546 $19,115 $17,769 $17,158
Noninterest income 1,750 2,114 4,335 1,602 1,554
----- ----- ----- ----- -----
Total revenue $22,059 $22,660 $23,450 $19,371 $18,712
======= ======= ======= ======= =======
Total revenue annualized $87,517 $89,901 $94,058 $78,560 $74,238
Total average assets $1,735,792 $1,687,662 $1,615,468 $1,576,419 $1,552,264
Average number of employees 237 245 245 241 242
Revenue per average number of employees $369 $367 $384 $326 $307
Average assets per average number of employees $7,324 $6,888 $6,594 $6,541 $6,414
Tangible stockholders' equity and Tangible book value per share
---------------------------------------------------------------
Total stockholders' equity $200,981 $199,560 $194,555 $189,812 $186,638
Less: Goodwill (249) (249) (249) (249) (249)
Other intangible assets (699) (754) (824) (904) (987)
---- ---- ---- ---- ----
Tangible stockholders' equity $200,033 $198,557 $193,482 $188,659 $185,402
======== ======== ======== ======== ========
Common shares outstanding 16,101 16,101 16,101 16,101 16,101
Book value per share $12.48 $12.39 $12.08 $11.79 $11.59
Tangible book value per share 12.42 12.33 12.02 11.72 11.51
Adjusted yield earned on loans
------------------------------
Reported yield on loans 5.67% 5.87% 5.89% 5.90% 5.84%
Effect of accretion income on acquired loans (0.10)% (0.10)% (0.10)% (0.14)% (0.19)%
------ ------ ------ ------ ------
Adjusted yield on loans 5.57% 5.77% 5.79% 5.76% 5.65%
==== ==== ==== ==== ====
Adjusted rate paid on total deposits
------------------------------------
Reported rate paid on total deposits 0.47% 0.46% 0.44% 0.47% 0.50%
Effect of premium amortization on acquired deposits 0.00% 0.00% 0.01% 0.01% 0.00%
---- ---- ---- ---- ----
Adjusted rate paid on total deposits 0.47% 0.46% 0.45% 0.48% 0.50%
==== ==== ==== ==== ====
Adjusted net interest margin
----------------------------
Reported net interest margin 4.51% 4.75% 4.71% 4.56% 4.24%
Effect of accretion income on acquired loans (0.10)% (0.09)% (0.09)% (0.12)% (0.16)%
Effect of premium amortization on acquired deposits and borrowings (0.01)% (0.02)% (0.02)% (0.03)% (0.03)%
------ ------ ------ ------ ------
Adjusted net interest margin 4.40% 4.64% 4.60% 4.41% 4.05%
==== ==== ==== ==== ====
Average excess cash
-------------------
Average total deposits $1,290,045 $1,237,460 $1,185,325 $1,186,076 $1,174,001
Borrowings due in one year or less 34,168 16,136 17,750 25,189 28,940
------ ------ ------ ------ ------
Total base for liquidity $1,324,213 $1,253,596 $1,203,075 $1,211,265 $1,202,941
========== ========== ========== ========== ==========
Minimum liquidity level (10% of base) (a) $132,421 $125,360 $120,308 $121,127 $120,294
Average cash and cash equivalents (b) 181,789 159,767 168,740 204,588 271,827
------- ------- ------- ------- -------
Cash above liquidity level (b)-(a) 49,368 34,407 48,432 83,461 151,533
Less estimated short-term deposits (11,978) (23,834) (20,823) (11,353) (24,421)
------- ------- ------- ------- -------
Average excess cash $37,390 $10,573 $27,609 $72,108 $127,112
======= ======= ======= ======= ========
Tangible equity to tangible assets
----------------------------------
Total stockholders' equity $200,981 $199,560 $194,555 $189,812 $186,638
Less: Goodwill (249) (249) (249) (249) (249)
Other intangible assets (699) (754) (824) (904) (987)
---- ---- ---- ---- ----
Tangible stockholders' equity $200,033 $198,557 $193,482 $188,659 $185,402
======== ======== ======== ======== ========
Total assets $1,725,520 $1,712,483 $1,677,806 $1,596,739 $1,536,691
Less: Goodwill (249) (249) (249) (249) (249)
Other intangible assets (699) (754) (824) (904) (987)
---- ---- ---- ---- ----
Tangible assets $1,724,572 $1,711,480 $1,676,733 $1,595,586 $1,535,455
========== ========== ========== ========== ==========
Equity/Assets 11.65% 11.65% 11.60% 11.89% 12.15%
Tangible Equity/Tangible Assets 11.60% 11.60% 11.54% 11.82% 12.07%
Definitions of Non-GAAP financial measures
Allowance for loan losses plus performing loans discount to total loans receivable adds the remaining discount on acquired performing loans to the allowance for loan losses to determine the total reserves and loan discounts established against our loans. Our management believes that this metric provides useful information for investors to analyze the overall level of reserves in banks that have completed acquisitions with no allowance carryover.
Efficiency ratio is defined as total noninterest expense divided by the sum of taxable-equivalent net interest income and noninterest income. Noninterest income is adjusted for nonrecurring gains and losses on sales of securities. This ratio is important to investors looking for a measure of efficiency in the Company's productivity measured by the amount of revenue generated for each dollar spent.
Revenue per average number of employees is annualized total interest income and total noninterest income divided by the average number of employees during the period and measures the Company's productivity by calculating the average amount of revenue generated per employee. Average assets per average number of employees is average assets divided by the average number of employees during the period and measures the average value of assets per employee.
Tangible stockholders' equity is defined as total equity reduced by goodwill and other intangible assets. Tangible book value per share is tangible stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets. We have not considered loan servicing rights as an intangible asset for purposes of this calculation.
Adjusted yield earned on loans is our yield on loans after excluding loan accretion from our acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on yield on loans, as the effect of loan discounts accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet.
Adjusted rate paid on total deposits is our cost of deposits after excluding amortization of premiums for acquired time deposits. Our management uses this metric to better assess the impact of purchase accounting on cost of deposits, as the effect of amortization of premiums related to deposits is expected to decrease as the acquired deposits mature or roll off of our balance sheet.
Adjusted net interest margin is net interest margin after excluding loan accretion from the acquired loan portfolio and amortization of premiums for acquired time deposits and Federal Home Loan Bank advances. Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discounts accretion and amortization of premiums related to deposits or borrowings is expected to decrease as the acquired loans and deposits mature or roll off of our balance sheet.
Average excess cash represents the cash and cash equivalents in excess of our minimum liquidity level (defined as 10% of average total deposits plus borrowings due in one year or less), minus Company estimated short-term deposits. In 2015, based on an historical analysis, we changed our methodology for estimating short-term deposits, which reduced the results beginning in 1Q15.
Tangible equity to tangible assets is defined as total equity reduced by goodwill and other intangible assets, divided by total assets reduced by goodwill and other intangible assets. This measure is important to investors interested in relative changes from period-to-period in total equity and total assets, each exclusive of changes in intangible assets. We have not considered loan servicing rights as an intangible asset for purposes of this calculation.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/c1-financial-reports-2015-fourth-quarter-results-300211592.html
SOURCE C1 Financial, Inc.
