TriState Capital Reports First Quarter 2014 Financial Results

PITTSBURGH--()--TriState Capital Holdings, Inc. (NASDAQ: TSC) today reported meaningful loan and revenue growth, as well as strong credit quality and profitability, for the first quarter ended March 31, 2014.

The holding company for TriState Capital Bank and Chartwell Investment Partners, Inc. reported net income of $4.6 million in the first quarter of 2014, compared to $4.8 million in the fourth quarter of 2013 and $2.9 million in the first quarter of 2013.

Diluted earnings per share were $0.16 in the first quarter of 2014, $0.17 in the fourth quarter of 2013 and $0.13 in the first quarter of last year, when TriState Capital had 6.6 million fewer average diluted common shares outstanding prior to its May 2013 initial public offering.

“We are pleased with TriState Capital Bank’s strong loan portfolio growth and credit quality, as well as early contributions by our recently acquired Chartwell business, which combined to help drive revenues and earnings in the first quarter,” Chairman and Chief Executive Officer James F. Getz said. “Pairing a highly profitable and capital-light investment management business with our branchless bank model immediately enhanced our risk profile, diversified our sources of revenue, and increased our capability to self-generate additional capital and liquidity from earnings to help fund continued growth.”

FIRST QUARTER 2014 HIGHLIGHTS

  • Total loans of $1.9 billion at period end grew 15.2%, annualized, from Dec. 31, 2013 and 14.1% from March 31, 2013.
  • Total deposits of $2.2 billion at period end grew 47.8%, annualized, from Dec. 31, 2013 and 21.4% from March 31, 2013.
  • Acquisition of Chartwell Investment Partners closed March 5, with the new subsidiary contributing $2.5 million in investment management services revenue in the last month of the quarter.
  • Chartwell assets under management grew by $517 million to $8.0 billion at March 31, 2014.

FIRST QUARTER 2014 RESULTS

TriState Capital’s first quarter 2014 net interest income of $15.9 million compared to $16.4 million in the linked fourth quarter of 2013 and $14.3 million in the year-ago first quarter of 2013. First quarter 2014 net interest income reflects two fewer days’ revenue than the linked quarter, growth in interest earning cash balances in the first three months of the year, and a majority of first quarter loan growth originating in late March. The full interest-income benefit of first quarter loan growth is expected to be realized going forward from the second quarter of 2014. Compared to the year-ago quarter, higher net interest income reflects substantial growth in average loan balances over the last 12 months.

From a credit quality perspective, provision expense was $608,000 in the first quarter of 2014, compared to $473,000 and $2.1 million for the linked and year-ago quarters, respectively.

Net interest margin was 2.86% in the first quarters of 2014 and 2013, compared to 2.97% in the fourth quarter of 2013. NIM in the first quarter of 2014 reflected higher interest earning cash balances maintained in order to fund loan production anticipated in the second quarter of 2014, including continued growth of TriState Capital’s lower-credit-risk private banking channel lending. NIM continued to benefit from improved funding costs, which averaged 0.52% in the first quarter of 2014 compared to 0.54% in the linked quarter and 0.70% in the year ago quarter.

Non-interest income for the first quarter of 2014 was $4.5 million, compared to $1.6 million in the linked quarter and $1.8 million recorded in the year-ago quarter. Non-interest income was enhanced by about one month of investment management services revenues, totaling $2.5 million, from TriState Capital’s new Chartwell subsidiary.

Non-interest income also included pre-tax gains from the sales of fixed rate investment securities available-for-sale of $1.0 million in the first quarter of 2014, $13,000 in the linked quarter and $784,000 in the year-ago quarter.

Revenues, excluding gains from investment securities sales, grew to $19.3 million in the first quarter of 2014, an increase of 7.6% over $18.0 million in the linked quarter and 25.9% over $15.3 million in the year-ago quarter.

First quarter 2014 non-interest expense of $12.8 million, or 2.22% of average assets on an annualized basis, reflects typical first quarter seasonality in compensation and payroll-related expenses. Also, $1.9 million of TriState Capital’s first quarter 2014 non-interest expense represents about one month of compensation and other costs associated with operating the Chartwell business acquired in March. Fourth quarter 2013 non-interest expense was $11.2 million, or 1.98% of average assets, annualized. For the year-ago quarter, non-interest expense was $9.6 million, or 1.87% of average assets, annualized.

The first quarter 2014 efficiency ratio for the Bank was 64.11%, compared to 58.21%, excluding nonrecurring acquisition expenses, in the fourth quarter of 2013 and 62.73% in the first quarter of 2013. The first quarter 2014 efficiency ratio was largely impacted by the bank’s lower revenues than in the linked quarter, which consisted of two fewer days’ loan interest income, as well as loan growth originating in March 2014. As compared to the year ago quarter, the bank had higher expenses resulting from costs associated with operating as a publicly traded company.

Pre-tax, pre-provision net revenue was $6.5 million in the first quarter of 2014, compared to $6.7 million in the linked quarter and $5.7 million in the year-ago quarter.

BALANCE SHEET GROWTH

Double-digit loan growth in the first quarter of 2014 reflected steady execution of TriState Capital’s strategy for continued loan growth. The Company continued to expand its lower-credit-risk private banking channel lending and saw continued growth in its commercial real estate loan portfolio. Loans totaled $1.9 billion at March 31, 2014, growing 15.2%, annualized, from Dec. 31, 2013, in spite of the seasonal slowdown in originations that many banks typically experience in the first quarter each year. Total loans grew 14.1% from March 31, 2013.

Private banking channel loans totaled $602.1 million at March 31, 2014, compared to $569.3 million at the end of the linked quarter and $446.4 million one year prior. Middle market commercial banking channel loans totaled $1.33 billion at March 31, 2014, compared to $1.29 billion at the end of the linked quarter and $1.25 billion one year prior.

Deposits grew 47.8%, annualized, during the first quarter to $2.19 billion at March 31, 2014, while deposit funding costs declined 2 basis points from the linked quarter. Compared to the year-ago quarter, deposits grew 21.4% at period end, while deposit funding costs declined 18 basis points.

TriState Capital remains very well positioned to profit from a rising interest-rate environment, and the bank continues to manage a highly asset-sensitive balance sheet. At March 31, 2014, 81% of TriState Capital’s loans and 53% of its securities portfolio were floating rate. In addition, 42% of deposits were fixed-rate time deposits.

ASSET QUALITY

Non-performing assets (NPAs) to total assets were 1.20% at March 31, 2014, 0.95% at Dec. 31, 2013, and 0.84% at March 31, 2013. The increase was due to the addition of two non-performing loans in the first quarter. In addition, the allowance for loan losses to non-performing loans measured 64.63% at the end of the first quarter, compared to 93.61% and 102.56% at the end of the linked and prior year quarters, respectively.

Net charge offs to average loans, annualized, were 0.19% in the first quarter of 2014 and 0.60% in the year-ago quarter. For the fourth quarter of 2013, the company had net recoveries representing 0.05% of average loans, annualized. The allowance for loan losses to total loans was 0.97% as of March 31, 2014, compared to 1.02% at Dec. 31, 2013 and 1.04% at March 31, 2013.

INVESTMENT MANAGEMENT PERFORMANCE

Chartwell Investment Partners’ assets under management were $8.0 billion at March 31, 2014 compared to $7.5 billion at Dec. 31, 2013. The first quarter 2014 increase in AUM of $517 million is attributed to net client inflows of $374 million and market appreciation of $143 million.

Chartwell investment management fees for the first 13 weeks of 2014 totaled $7.3 million, of which $2.5 million from March is reflected in TriState Capital’s first quarter consolidated non-interest income.

CAPITAL STRENGTH

TriState Capital’s consistent earnings power continued to support capital ratios in excess of the highest required regulatory benchmark levels. As of March 31, 2014, TriState Capital’s tier 1 leverage ratio was 10.61% and the ratio of tangible equity to tangible assets was 9.85%.

CONFERENCE CALL

As previously announced, TriState Capital will hold a conference call tomorrow to review its financial results and operating performance.

The live conference call on April 24 will be held at 8:30 a.m. ET and may be accessed by dialing 888-317-6016 from the United States, 855-669-9657 from Canada or 412-317-6016 from other international locations. Participants should dial in at least 10 minutes prior to the call and request the “TSC Earnings Call.”

A replay of the call will be available approximately one hour after the end of the conference through 9 a.m. ET on May 1, 2014. The replay may be accessed by dialing 877-344-7529 from the United States or 412-317-0088 from other locations and entering the conference number 10044059.

ABOUT TRISTATE CAPITAL

TriState Capital Holdings, Inc. (NASDAQ: TSC) is a bank holding company headquartered in Pittsburgh, Pa., providing commercial banking, private banking and investment management services to middle-market companies, institutional clients and high-net-worth individuals. Its TriState Capital Bank subsidiary has $2.5 billion in assets, as of March 31, 2014, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Princeton, N.J., and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. Its Chartwell Investment Partners subsidiary has $8.0 billion in assets under management, as of March 31, 2014, and serves TriState Capital’s financial intermediary network and over 150 institutional clients. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD LOOKING STATEMENTS

This press release includes “forward-looking” statements related to TriState Capital that can generally be identified as describing TriState Capital’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect TriState Capital’s future results, please see the company’s most-recent annual and quarterly reports filed on Form 10-K and Form 10-Q.

NON-GAAP FINANCIAL DISCLOSURES

This news release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Although TriState Capital believes non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Where non-GAAP disclosures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and accompanying tables.

 

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

 
As of and For the
Three Months Ended
(Dollars in thousands) March 31,   December 31,   March 31,
    2014   2013   2013
Period-end balance sheet data:
Cash and cash equivalents $ 291,449 $ 146,558 $ 140,504
Total investment securities 201,280 227,844 198,465
Total loans 1,930,491 1,860,775 1,692,117
Allowance for loan losses     (18,752 )     (18,996 )     (17,580 )
Total loans, net of allowance for loan losses 1,911,739 1,841,779 1,674,537
Goodwill and other intangibles, net 54,275
Other assets     82,952       74,328       60,781  
Total assets   $ 2,541,695     $ 2,290,509     $ 2,074,287  
 
Total deposits

$

2,192,963

$

1,961,705 $ 1,806,885
Borrowings 20,000 20,000 20,000
Other liabilities     29,350       14,859       27,305  
Total liabilities     2,242,313       1,996,564       1,854,190  
 
Preferred stock - Series C (convertible) 46,011
Common shareholders' equity     299,382       293,945       174,086  
Total shareholders' equity     299,382       293,945       220,097  
 
Total liabilities and shareholders' equity   $ 2,541,695     $ 2,290,509     $ 2,074,287  
 
Income statement data:
Interest income $ 18,308 $ 18,885 $ 17,399
Interest expense     2,446       2,501       3,055  
Net interest income 15,862 16,384 14,344
Provision for loan losses     608       473       2,132  
Net interest income after provision for loan losses 15,254 15,911 12,212
Non-interest income:
Investment management fees 2,454
Net gain on sale of investment securities available-for-sale 1,014 13 784
Other non-interest income     1,012       1,575       1,004  
Total non-interest income 4,480 1,588 1,788
Non-interest expense:
Amortization expense 130
Other non-interest expense     12,662       11,211       9,628  
Total non-interest expense     12,792       11,211       9,628  
Income before tax 6,942 6,288 4,372
Income tax expense     2,326       1,478       1,517  
Net income   $ 4,616     $ 4,810     $ 2,855  
 
 

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

 
As of and For the
Three Months Ended
(Dollars in thousands, except per share data) March 31,   December 31,   March 31,
    2014   2013   2013
Per share and share data:
Earnings per share:
Basic $ 0.16 $ 0.17 $ 0.13
Diluted $ 0.16 $ 0.17 $ 0.13
Book value per common share $ 10.43 $ 10.25 $ 9.98
Book value per share with preferred converted to common (1) $ 10.43 $ 10.25 $ 9.86
Tangible book value per share with preferred converted to common (1) $ 8.54 $ 10.25 $ 9.86
Common shares outstanding, at end of period 28,690,279 28,690,279 17,444,730
Common shares outstanding with preferred converted to common, at end of period (1) 28,690,279 28,690,279 22,322,779
Average common shares outstanding:
Basic 28,690,279 28,690,279 17,436,952
Diluted 29,143,467 29,063,786 22,541,141
 
Performance ratios:
Return on average assets (2) 0.80 % 0.85 % 0.56 %
Return on average equity (2) 6.29 % 6.51 % 5.26 %
Net interest margin (2) (3) 2.86 % 2.97 % 2.86 %
Bank efficiency ratio (1) 64.38 % 62.43 % 62.73 %
Bank efficiency ratio, as adjusted (1) 64.11 % 58.21 % 62.73 %
Efficiency ratio (1) 66.18 % 62.43 % 62.73 %
Efficiency ratio, as adjusted (1) 65.28 % 58.21 % 62.73 %
Non-interest expense to average assets (2) 2.22 % 1.98 % 1.87 %
Pre-tax, pre-provision net revenue per average employee (2) $ 193 $ 206 $ 193
 
Asset quality:
Non-performing loans $ 29,015 $ 20,293 $ 17,142
Non-performing assets $ 30,428 $ 21,706 $ 17,432
Other real estate owned $ 1,413 $ 1,413 $ 290
Non-performing assets to total assets 1.20 % 0.95 % 0.84 %
Allowance for loan losses to total loans 0.97 % 1.02 % 1.04 %
Allowance for loan losses to non-performing loans 64.63 % 93.61 % 102.56 %
Net charge-offs (recoveries) $ 852 $ (242

)

 

$ 2,426
Net charge-offs (recoveries) to average total loans (2) 0.19 % (0.05

)

%

0.60 %
 
Revenue:
Total revenue (1) $ 19,328 $ 17,959 $ 15,348
Pre-tax, pre-provision net revenue (1) $ 6,536 $ 6,748 $ 5,720
 
Capital ratios:
Tangible equity to tangible assets (1) 9.85 % 12.83 % 10.61 %
Tier 1 leverage ratio 10.61 % 13.12 % 10.53 %
 
Assets under management $ 7,971,000 $ $
 

(1)

  These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures.

(2)

Ratios are annualized.

(3)

Net interest margin is calculated on a fully taxable equivalent basis.
 
 

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

 
  Three Months Ended
March 31, 2014   December 31, 2013   March 31, 2013
  Interest   Average   Interest   Average   Interest   Average
Average

Income (1)/

Yield/ Average

Income (1)/

Yield/ Average

Income (1)/

Yield/

(Dollars in thousands)

  Balance   Expense   Rate Balance   Expense   Rate Balance   Expense   Rate
Assets
Interest-earning deposits $ 181,784 $ 150 0.33 % $ 137,824 $ 115 0.33 % $ 177,844 $ 150 0.34 %
Federal funds sold 7,567 1 0.05 % 8,392 1 0.05 % 10,704 4 0.15 %
Investment securities available-for-sale 187,882 664 1.43 % 206,548 804 1.54 % 203,672 936 1.86 %
Investment securities held-to-maturity 25,253 217 3.48 % 25,283 218 3.42 % %
Investment securities trading % % 2,140 11 2.08 %
Total loans     1,857,570     17,334 3.78 %   1,816,860     17,806 3.89 %   1,644,340     16,349 4.03 %
Total interest-earning assets     2,260,056     18,366 3.30 %   2,194,907     18,944 3.42 %   2,038,700     17,450 3.47 %
Other assets     73,251   55,222   44,291
Total assets   $ 2,333,307 $ 2,250,129 $ 2,082,991
 
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest-bearing checking accounts $ 24,106 $ 6 0.10 % $ 6,010 $ 1 0.07 % $ 5,295 $ 1 0.08 %
Money market deposit accounts 961,955 880 0.37 % 947,059 922 0.39 % 902,495 979 0.44 %
Time deposits (excluding CDARS®) 466,372 986 0.86 % 448,872 989 0.87 % 483,890 1,308 1.10 %
CDARS® time deposits 420,170 553 0.53 % 403,728 567 0.56 % 353,886 746 0.85 %
Borrowings     20,222     21 0.42 %   20,000     22 0.44 %   20,000     21 0.43 %
Total interest-bearing liabilities     1,892,825     2,446 0.52 %   1,825,669     2,501 0.54 %   1,765,566     3,055 0.70 %
Noninterest-bearing deposits 125,772 117,552 81,346
Other liabilities 16,924 13,681 15,898
Shareholders' equity     297,786   293,227   220,181
Total liabilities and shareholders' equity   $ 2,333,307 $ 2,250,129 $ 2,082,991
 
Net interest income $ 15,920 $ 16,443 $ 14,395
Net interest spread 2.78 % 2.88 % 2.77 %

Net interest margin (1)

2.86 % 2.97 % 2.86 %
 

(1)

  Net interest income and net interest margin are calculated on a fully taxable equivalent basis.
 
     

TRISTATE CAPITAL HOLDINGS, INC.

LOAN COMPOSITION (UNAUDITED)

 
March 31, 2014 December 31, 2013 March 31, 2013
Loan   Percent of Loan   Percent of Loan   Percent of

(Dollars in thousands)

  Balance   Total Loans   Balance   Total Loans   Balance   Total Loans
Middle market banking channel loans:
Commercial and industrial $ 736,689 38.2 % $ 739,041 39.7 % $ 767,077 45.3 %
Commercial real estate     591,687   30.6 %     552,388   29.7 %     478,604   28.3 %
Total middle market banking channel loans 1,328,376 68.8 % 1,291,429 69.4 % 1,245,681 73.6 %
Total private banking channel loans     602,115   31.2 %     569,346   30.6 %     446,436   26.4 %
Total loans   $ 1,930,491   100.0 %   $ 1,860,775   100.0 %   $ 1,692,117   100.0 %
 
 

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)
 
Three Months Ended March 31, 2014
  Investment  

(Dollars in thousands)

  Bank   Management   Consolidated
Income statement data:
Interest income $ 18,308 $ $ 18,308
Interest expense   2,446     2,446
Net interest income 15,862 15,862
Provision for loan losses   608     608
Net interest income after provision for loan losses 15,254 15,254
Non-interest income:
Investment management fees 2,454 2,454
Net gain on sale of investment securities available-for-sale 1,014 1,014
Other non-interest income   1,012     1,012
Total non-interest income 2,026 2,454 4,480
Non-interest expense:
Amortization expense 130 130
Other non-interest expense   10,863   1,799   12,662
Non-interest expense   10,863   1,929   12,792
Income before tax 6,417 525 6,942
Income tax expense   2,105   221   2,326
Net income   $ 4,312   $ 304   $ 4,616
 

TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES

The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are “tangible equity,” “tangible equity to tangible assets,” “common shares outstanding with preferred converted to common,” “book value per share with preferred converted to common,” “tangible book value per share with preferred converted to common,” “total revenue,” “pre-tax, pre-provision net revenue,” and “efficiency ratio.” Although we believe these non-GAAP financial measures provide a greater understanding of our business, these measures are not necessarily comparable to similar measures that may be presented by other companies.

“Tangible equity” is defined as shareholders' equity reduced by intangible assets, including goodwill, if any. We believe this measure is important to management and investors to better understand and assess changes from period to period in shareholders' equity exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

“Tangible equity to tangible assets” is defined as the ratio of shareholders' equity reduced by intangible assets, divided by total assets reduced by intangible assets. We believe this measure is important to many investors who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

“Common shares outstanding with preferred converted to common” is defined as shares of our common stock issued and outstanding, inclusive of our issued and outstanding Series C preferred stock. We believe this measure is important to many investors who are interested in changes from period to period in our shares of common stock issued and outstanding giving effect to the conversion of shares of our Series C preferred stock which were convertible at the option of the holder and were converted to common stock immediately prior to the closing of the initial public offering, which closed on May 14, 2013. Convertible shares of preferred stock had the effect of not impacting shares of common stock issued and outstanding until they were converted, at which point they added to the number of shares of common stock issued and outstanding.

“Book value per share with preferred converted to common” is defined as book value, divided by shares of common stock issued and outstanding with preferred stock converted to common stock. We believe this measure is important to many investors who are interested in changes from period to period in book value per share inclusive of shares of preferred stock that could be converted to shares of common stock. Prior to conversion, convertible shares of preferred stock had the effect of not impacting book value per common share, but reduced our book value per share with preferred converted to common.

“Tangible book value per share with preferred converted to common” is defined as book value, excluding the impact of goodwill, if any, divided by common shares outstanding with preferred converted to common. We believe this measure is important to many investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets and inclusive of shares of preferred stock that could be converted to shares of common stock. Goodwill is an intangible asset that is recorded in a purchase business combination. Prior to conversion, convertible shares of preferred stock had the effect of not impacting tangible book value per common share, but reduced our tangible book value per share with preferred converted to common.

“Total revenue” is defined as net interest income and non-interest income, excluding gains and losses on sales of investment securities available-for-sale. We believe adjustments made to our operating revenue allow management and investors to better assess our operating revenue by removing the volatility that is associated with certain other items that are unrelated to our core business.

“Pre-tax, pre-provision net revenue” is defined as net income, without giving effect to loan loss provision and income taxes, and excluding net gain (loss) on sale of investment securities available-for-sale. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan losses or other items that are unrelated to our core business.

“Efficiency ratio” is defined as non-interest expense divided by our total revenue. We believe this measure allows management and investors to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

 

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 
  March 31,   December 31,   March 31,

(Dollars in thousands, except per share data)

  2014   2013   2013
Book value per share with preferred converted to common:
Common shareholders' equity $ 299,382 $ 293,945 $ 174,086
Preferred stock (convertible)                 46,011  
Total common shareholders' equity and preferred stock to Series C   $ 299,382     $ 293,945     $ 220,097  
Preferred shares outstanding 48,780.488
Conversion factor                 100  
Preferred shares converted to common shares outstanding 4,878,049
Common shares outstanding     28,690,279       28,690,279       17,444,730  
Common shares with preferred shares converted to common     28,690,279       28,690,279       22,322,779  
Book value per share with preferred converted to common $ 10.43 $ 10.25 $ 9.86
 
Tangible book value per share with preferred converted to common:
Book value per common share $ 10.43 $ 10.25 $ 9.98
Less: effects of intangible assets     1.89              
Tangible book value   $ 8.54     $ 10.25     $ 9.98  
Common shares with preferred shares converted to common     28,690,279       28,690,279       22,322,779  
Tangible book value per share with preferred converted to common $ 8.54 $ 10.25 $ 9.86
 
Tangible equity to tangible assets:
Total shareholders' equity 299,382 293,945 220,097
Less: intangible assets     54,275              
Tangible equity   $ 245,107     $ 293,945     $ 220,097  
Total assets 2,541,695 2,290,509 2,074,287
Less: intangible assets     54,275              
Tangible assets   $ 2,487,420     $ 2,290,509     $ 2,074,287  
Tangible equity to tangible assets 9.85 % 12.83 % 10.61 %
 
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands)   2014   2013   2013
Pre-tax, pre-provision net revenue:
Net interest income before provision for loan losses $ 15,862 $ 16,384 $ 14,344
Total non-interest income 4,480 1,588 1,788
Less: net gain on the sale of investment securities available-for-sale     1,014       13       784  
Total revenue 19,328 17,959 15,348
Less: total non-interest expense     12,792       11,211       9,628  
Pre-tax, pre-provision net revenue   $ 6,536     $ 6,748     $ 5,720  
 
Efficiency ratio:
Total non-interest expense (numerator)   $ 12,792     $ 11,211     $ 9,628  
Total revenue (denominator)   $ 19,328     $ 17,959     $ 15,348  
Efficiency ratio 66.18 % 62.43 % 62.73 %
 
Efficiency ratio, as adjusted:
Less: Nonrecurring expenses (1) $ 45 $ 757 $
Less: amortization expense     130              
Total non-interest expense, as adjusted (numerator)   $ 12,617     $ 10,454     $ 9,628  
Total revenue (denominator)   $ 19,328     $ 17,959     $ 15,348  
Efficiency ratio, as adjusted 65.28 % 58.21 % 62.73 %
 

(1)

  Nonrecurring expenses include costs associated with the Chartwell transaction.
 
 

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 
Three Months Ended
March 31,
(Dollars in thousands)   2014
Bank pre-tax, pre-provision net revenue:
Net interest income before provision for loan losses $ 15,862
Total non-interest income 2,026
Less: net gain on the sale of investment securities available-for-sale     1,014  
Total revenue 16,874
Less: total non-interest expense     10,863  
Pre-tax, pre-provision net revenue   $ 6,011  
 
Bank efficiency ratio:
Total non-interest expense (numerator)   $ 10,863  
Total revenue (denominator)   $ 16,874  
Efficiency ratio 64.38 %
 
Bank efficiency ratio, as adjusted:
Less: nonrecurring expenses (1)   $ 45  
Total non-interest expense, as adjusted (numerator)   $ 10,818  
Total revenue (denominator)   $ 16,874  
Efficiency ratio, as adjusted 64.11 %
 

(1)

  Nonrecurring expenses include costs associated with the Chartwell transaction.
 

Contacts

TriState Capital Holdings, Inc.
MEDIA CONTACTS
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)
jack@hornercom.com
or
Mike Gross
267-932-8760, ext. 310
856-628-6169 (mobile)
mike@hornercom.com
or
INVESTOR RELATIONS CONTACT
Brian Fetterolf
412-304-0451
investorrelations@tscbank.com

Sharing

Contacts

TriState Capital Holdings, Inc.
MEDIA CONTACTS
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)
jack@hornercom.com
or
Mike Gross
267-932-8760, ext. 310
856-628-6169 (mobile)
mike@hornercom.com
or
INVESTOR RELATIONS CONTACT
Brian Fetterolf
412-304-0451
investorrelations@tscbank.com