TriState Capital Reports EPS of $1.89 for 2019 and $0.44 for the Fourth Quarter on Record Growth of Loans and Deposits

-- All categories of lending, as well as net interest income and total revenue, hit new all-time high annual and quarterly levels --

PITTSBURGH--()--TriState Capital Holdings, Inc. (Nasdaq: TSC) fourth quarter and full year 2019 financial results included record growth in loans and deposits, all-time high levels of annual and quarterly net interest income and revenue, and growth in client assets under management.

Net income available to common shareholders was $54.4 million, or $1.89 per diluted share, in 2019 and $12.6 million, or $0.44 per share, in the fourth quarter of last year, including approximately $0.03 per share for professional fees and other expenses associated with TriState Capital’s previously disclosed strategy to actively evaluate potential acquisition opportunities for its Chartwell Investment Partners business. The parent company of Chartwell and TriState Capital Bank reported net income available to common shareholders of $52.3 million, or $1.81 per share, in 2018, and $14.4 million, or $0.50 per share, in both the fourth quarter of 2018 and third quarter of 2019.

Meaningful organic growth across each of our commercial banking, private banking and investment management businesses contributed to all-time-high quarterly and annual revenues for TriState Capital, even as the industry faced a challenging interest rate environment in 2019,” Chief Executive Officer James F. Getz said. “With much of our strong fourth quarter production coming in December, we expect the full benefit of record loan growth to be realized in net interest income this year. Together with plans for continued double-digit organic balance sheet expansion, very competitive investment performance at Chartwell, underwriting discipline, and an emphasis on investing in our businesses while managing operating expenses, TriState Capital is very well positioned to continue growing earnings in 2020.”

FULL YEAR AND FOURTH QUARTER 2019 HIGHLIGHTS

  • All categories of lending hit new record levels, with total loans growing organically by 28.1% for the year and 9.3% during the quarter.
  • Commercial and industrial (C&I) loans grew 38.3% for the year and 9.4% during the quarter, while commercial real estate loans grew 21.5% for the year and 8.5% during the quarter.
  • Private banking loans grew 28.8% for the year and 9.7% during the quarter.
  • Total deposits grew 31.4% for the year and 8.9% during the quarter.
  • Chartwell assets under management (AUM) grew to $9.70 billion at period end, as 92% of Chartwell’s investment strategies surpassed their benchmarks for the trailing three years and 75% surpassed their benchmarks for the trailing five years.
  • The company maintained superior asset quality metrics, including period-end non-performing assets representing 0.06% of total assets and non-performing loans representing $184,000 of the bank’s $6.58 billion loan portfolio.

Net interest income (NII) grew to a record $33.1 million in the fourth quarter of 2019, increasing 12.0% from $29.5 million in the year-ago quarter and 2.3% from $32.3 million in the linked quarter. Double-digit annual NII growth continued as the company grew deposits at a faster rate than loans, maintaining a loan-to-deposit ratio under 100%, and further expanding private banking loans backed by marketable securities as a proportion of the bank’s balance sheet.

Non-interest income totaled $13.5 million in the fourth quarter of 2019, compared to $11.6 million in the prior year quarter and $14.2 million in the linked quarter. TriState Capital’s non-interest income represented 28.9% of total revenue for the fourth quarter of 2019 when excluding net gains on the sale of debt securities. Total revenue is a financial measure not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) representing the sum of NII and total non-interest income, as described in greater detail below.

Chartwell investment management fees were $8.9 million in the fourth quarter of 2019, compared to $9.2 million in the prior year quarter and $8.9 million in the linked quarter. Borrower-facing interest rate swap activity also generated $3.4 million in fees during the fourth quarter of 2019, compared to $2.2 million in the prior year quarter and a record $4.2 million in the linked quarter.

NII and non-interest income, excluding gains and losses on the sale of securities, combined to generate record total revenue of $46.5 million for the fourth quarter of 2019, an increase of 12.9% from $41.2 million in the prior year period and 0.3% from $46.4 million in the linked quarter. Full year 2019 total revenue was a record $179.4 million, up 11.2% from $161.4 million in 2018.

Non-interest expense totaled $112.1 million in 2019 and $30.1 million in the fourth quarter of last year. This included approximately $850,000, or about $0.03 per share after tax, in the fourth quarter of 2019 for professional fees and other expenses associated with due diligence on and discussions with an investment management acquisition candidate, which concluded before the parties reached a definitive agreement. No payments were made, or are due to, the former acquisition candidate.

TriState Capital’s previously disclosed strategy to actively evaluate potential acquisitions for its Chartwell unit remains unchanged. The company will continue to consider transactions that meet all of its clear acquisition criteria, including cultural compatibility, credible investment performance, complimentary investment products, and immediate earnings per share accretion.

Excluding acquisition-related costs, non-interest expense was $111.3 million in 2019, increasing by 10.0% from $101.2 million in 2018, and $29.3 million in the fourth quarter of 2019. Total non-interest expense was $26.3 million in the prior year quarter and $27.8 million in the linked quarter.

Compensation and employee benefits were $16.7 million in the fourth quarter of 2019, compared to $16.6 million in the prior year quarter and $18.7 million in the linked quarter. Investments in talent, building scale, and client acquisition, including the expansion of the workforce by 19 employees in 2019, were largely offset by TriState Capital’s performance-based incentive compensation program and expense-management discipline across each of the company’s business lines.

TriState Capital Bank’s efficiency ratio was 54.49% in 2019 and 53.09% in 2018. The bank’s efficiency ratio for the fourth quarter of 2019 was 56.03%, compared to 54.60% in the year-ago quarter and 50.70% in the linked quarter. Efficiency ratio is a financial measure not calculated in accordance with U.S. GAAP representing non-interest expense divided by total revenue. Non-interest expense represented just 1.60% of average assets in the fourth quarter of 2019, declining 21 basis points from the year-ago quarter and increasing 1 basis point from the linked quarter.

Pre-tax, pre-provision net revenue was $16.4 million in the fourth quarter of 2019, compared to $14.9 million in the year-ago period and $18.6 million in the linked quarter. Pre-tax, pre-provision net revenue is a financial measure not calculated in accordance with U.S. GAAP representing net income, without giving effect to loan loss provision and income taxes, and excluding gains and losses on the sale and call of investment securities.

Pre-tax income was $15.7 million in the fourth quarter of 2019, compared to $15.4 million in the year-ago period and $19.4 million in the linked quarter.

TriState Capital’s effective tax rate was 12.3% for 2019. The company’s effective tax rate is impacted by certain factors including the number, timing and size of tax credit investments, as well as the proportion of consolidated earnings attributed to investment management.

Net income available to common shareholders and earnings per share in the fourth quarter of 2019 reflected $2.0 million payable for the company’s quarterly cash dividends on Series A and Series B Non-Cumulative Perpetual Preferred Stock.

ORGANIC LOAN GROWTH

TriState Capital continued to show strong organic growth on both sides of its balance sheet, expanding the number and depth of its relationships with high-quality middle-market commercial customers, as well as the high-net-worth clients the bank serves through its national referral network of investment advisors and other financial intermediaries.

Average loans totaled a record $6.25 billion in the fourth quarter of 2019, growing 28.7% from $4.85 billion in the year- ago quarter and 8.2% from $5.78 billion in the linked quarter. Loans at December 31, 2019 totaled $6.58 billion, growing an annual record $1.44 billion, or 28.1%, from one year prior and a quarterly record $560.9 million, or 9.3%, from September 30, 2019.

TriState Capital’s growing distribution capabilities helped drive new loan originations in its private banking business for the fourth quarter of 2019, as the company fortifies its position as the nation’s leading provider of marketable securities-backed loans through independent investment advisory and other financial services firms. Private banking loans totaled $3.70 billion at December 31, 2019, increasing $825.9 million, or 28.8%, from one year prior and $327.3 million, or 9.7%, from the end of the linked quarter.

The company continued to grow relationships with middle-market enterprises in the fourth quarter of 2019 to drive originations of commercial and industrial (C&I) loans and commercial real estate (CRE) loans. Commercial loans totaled $2.88 billion at December 31, 2019, increasing $618.8 million, or 27.3%, from one year prior and $233.6 million, or 8.8%, from the end of the linked quarter.

C&I loans grew to $1.09 billion at December 31, 2019, increasing by $300.4 million, or 38.3%, from one year prior and $93.2 million, or 9.4%, from the end of the linked quarter. CRE loans grew to $1.80 billion at December 31, 2019, increasing $318.4 million, or 21.5%, from one year prior and $140.4 million, or 8.5%, from the end of the linked quarter. CRE loans represented 27.3% of total period-end loans.

STRATEGIC DEPOSIT FRANCHISE EXPANSION

TriState Capital continues to support private banking and commercial loan growth with the strategic and organic expansion of its deposit franchise. The bank’s national treasury management and liquidity management offerings are increasing the number and depth of depositor relationships with financial services businesses, high-net-worth individuals, family offices, middle market companies, professional service firms, specialized payment and transaction processors, municipalities and non-profits.

Average deposits totaled $6.21 billion in the fourth quarter of 2019, growing 29.5% from $4.80 billion in the same period last year and 4.4% from $5.95 billion in the linked quarter. Deposits at December 31, 2019 totaled $6.63 billion, growing by an annual record $1.58 billion, or 31.4%, from one year prior and a quarterly record $540.0 million, or 8.9%, from September 30, 2019.

Treasury management deposit accounts grew to $1.07 billion at December 31, 2019, increasing $471.3 million from December 31, 2018.

The bank’s loan-to-deposit ratio was 99.1% at December 31, 2019 compared to 101.6% one year prior and 98.7% at the end of the linked quarter.

INTEREST RATE MANAGEMENT

TriState Capital continues to maintain a balance sheet with significant flexibility to manage interest rate risk in changing markets.

The yield on total loans averaged 3.81% in the fourth quarter of 2019, compared to 4.35% in the prior year period and 4.23% in the linked quarter. Yields reflect the proportion of the portfolio dedicated to private banking non-purpose margin loans secured by marketable securities, an overall focus on variable rate pricing, asset quality, and operating leverage, and downward movement in 30-day LIBOR during the fourth quarter of 2019. At December 31, 2019, 92% of the company’s loan portfolio was floating rate and primarily indexed to 30-day LIBOR.

Total cost of funds for all deposits and interest-bearing liabilities averaged 1.93% during the fourth quarter of 2019, compared to 2.19% in the same period last year and 2.27% in the linked quarter. The cost of total deposits averaged 1.92% during the fourth quarter of 2019, compared to 2.17% in the same period last year and 2.27% in the linked quarter. At December 31, 2019, 22% of deposits were fixed-rate certificates of deposit.

TriState Capital reported a net interest margin of 1.84% for the fourth quarter of 2019, compared to 2.12% in the same period last year and 1.94% in the linked quarter.

INVESTMENT MANAGEMENT

Strong investment performance across Chartwell’s active equity and fixed income strategies contributed to growth in assets under management (AUM) during the fourth quarter of 2019. Chartwell AUM was $9.70 billion at December 31, 2019, compared to $9.19 billion one year prior and $9.62 billion at September 30, 2019.

Chartwell new business and new flows from existing accounts of $326 million and market appreciation of $303 million more than offset outflows of $543 million in the fourth quarter of 2019.

Chartwell’s weighted average fee rate was 0.36% at December 31, 2019. Investment management fee revenue totaled $8.9 million in the fourth quarter of 2019, compared to $9.2 million in the year-ago quarter and $8.9 million in the linked quarter.

ASSET QUALITY

TriState Capital maintained strong asset quality metrics in the fourth quarter of 2019, reflecting the company’s disciplined credit culture and expansion of its private banking non-purpose margin loans secured by marketable securities. Private banking grew to represent 56.2% of total loans at December 31, 2019, while commercial real estate and commercial and industrial comprised 27.3% and 16.5% of total loans, respectively.

Non-performing assets (NPAs) were $4.4 million, or 0.06% of total assets, at December 31, 2019, compared to $5.7 million, or 0.09%, at December 31, 2018 and $4.4 million, or 0.06%, at September 30, 2019.

Non-performing loans (NPLs) were $184,000, or 0.00% of total loans, at December 31, 2019, compared to $2.2 million, or 0.04%, at December 31, 2018 and $184,000, or 0.00%, at September 30, 2019.

Adverse-rated credits were $35.0 million, or 0.53% of total loans at December 31, 2019, compared to $24.8 million, or 0.48%, at December 31, 2018 and $26.6 million, or 0.44%, at September 30, 2019.

The company recorded net recoveries of $6,000 in the fourth quarter of 2019 and $206,000 in the year-ago quarter. It recorded net charge-offs of $35,000 in the linked quarter.

TriState Capital recorded provision expense of $728,000 for the fourth quarter of 2019. It recorded credits to provision of $581,000 for the year-ago quarter and $607,000 for the linked quarter.

The company’s allowance for loan losses (ALL) continued to reflect overall credit quality, as well as lower levels of provision required by the growing proportion of low-risk-profile private banking loans in the bank’s portfolio. ALL represented 0.21% of total loans at December 31, 2019, 0.26% at December 31, 2018 and 0.22% at September 30, 2019.

CAPITAL STRENGTH AND FLEXIBILITY

The company’s regulatory capital levels benefited from retained earnings, as well as its Series B perpetual preferred stock offering completed in the second quarter of 2019. TriState Capital Holdings’ estimated regulatory capital ratios on December 31, 2019 were 12.05% for total risk-based capital, 11.75% for tier 1 risk-based capital, 9.32% for common equity tier 1 risk-based capital and 7.54% for tier 1 leverage.

The company repurchased 90,000 shares of its common stock last year, all in the first nine months of 2019, for approximately $1.8 million at an average cost of $20.21 per share. Since the Board first authorized share buybacks in October 2014, the company has repurchased a total of 2.1 million shares for approximately $32.3 million at an average cost of $15.36 per share. TriState Capital had $10.4 million of repurchase authority available at December 31, 2019, under previously disclosed buyback programs authorized by its Board of Directors.

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 January 30 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link http://dpregister.com/10137487 to receive a special dial-in number and PIN. Telephone participants who are unable to pre-register should dial in at least 10 minutes prior to the call and request the “TriState Capital investor call.” The call may be accessed by dialing 888-339-0757 from the United States, 855-669-9657 from Canada or 412-902-4194 from other international locations.

The live conference call will also be available through an audio webcast accessible at https://services.choruscall.com/links/tsc200130.html or http://investors.tristatecapitalbank.com. These links may also be used to access an archived replay of the conference call.

A telephone replay of the call will be available approximately one hour after the end of the conference call through February 6. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 412-317-0088 from other locations and entering the conference number 10137487.

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 had $7.7 billion in assets, as of December 31, 2019, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Edison, 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 had $9.7 billion in assets under management, as of December 31, 2019, and serves institutional clients and TriState Capital’s financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD LOOKING STATEMENTS

This news release includes “forward-looking statements” in reliance on the safe-harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. The words “achieve,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “maintain,” “opportunity,” “plan,” “potential,” “project,” “sustain,” “target,” “trend,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” and similar expressions, among others, generally identify forward-looking statements. Examples of forward-looking statements include, without limitation, statements relating to TriState Capital’s future plans, objectives or goals and are based on current expectations, plans or forecasts. Such forward-looking statements are subject to risks, uncertainties and changed circumstances that are difficult to predict and are often beyond TriState Capital’s ability to control. Actual results or outcomes could differ materially from those currently anticipated, discussed or projected by forward-looking statements. Such risks and uncertainties include, but are not limited to:

  • those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which TriState Capital operates and in which its loans are concentrated;
  • TriState Capital's level of non-performing assets and the costs associated with resolving problem loans;
  • possible loan losses, impairment and the collectability of loans;
  • changes in market interest rates which may increase funding costs and/or reduce earning asset yields and thus reduce margin;
  • the impact of changes in interest rates on the credit quality and value of underlying securities collateral of the loan portfolio and the effect of such changes on the market value of TriState Capital's investment securities portfolio;
  • federal and state regulation, supervision and examination, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder, and potential expenses associated with complying with regulations;
  • TriState Capital's ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms;
  • possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations;
  • any impairment of TriState Capital's goodwill or other intangible assets;
  • conditions in the financial markets that may limit TriState Capital's access to additional funding to meet its liquidity needs;
  • the success of TriState Capital's growth plans, including the successful integration of past and future acquisitions, the ability to fully realize the cost savings and other benefits of its acquisitions, and the ability to manage risks related to business disruption following those acquisitions;
  • TriState Capital’s ability to develop and provide competitive products and services that appeal to its customers and target markets;
  • fluctuations in the carrying value of Chartwell’s assets under management;
  • the relative and absolute investment performance of Chartwell’s investment products;
  • system failure or breaches of TriState Capital's network security;
  • TriState Capital's ability to recruit and retain key employees;
  • Chartwell’s success in negotiating distribution arrangements and maintaining distribution channels for its products;
  • the failure by a key vendor to fulfill its obligations to TriState Capital;
  • the effects of problems encountered by other financial institutions that adversely affect TriState Capital or the banking industry generally;
  • regulatory limits on TriState Capital's ability to receive dividends from its subsidiaries and pay dividends to its preferred shareholders; and
  • the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above.

We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made, and TriState Capital disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of TriState Capital for any reason, except as specifically required by law. For further information about the factors that could affect TriState Capital’s future results, please see the company’s most-recent annual reports on Form 10-K and quarterly reports on Form 10-Q, and other documents the company files with the Securities and Exchange Commission from time to time.

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). Specifically, TriState Capital reviews and reports tangible common equity, tangible book value per common share, EBITDA, total revenue, pre-tax, pre-provision net revenue, and efficiency ratio. TriState Capital believes these non-GAAP financial measures, when considering along with its GAAP results, provide a greater understanding of its business and results of operations. However, 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.

BALANCE SHEET DATA (UNAUDITED)

 

 

As of and For the
Three Months Ended

 

As of and For the
Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Cash and cash equivalents

$

403,855

 

$

383,948

 

$

189,985

 

 

$

403,855

 

$

189,985

 

Total investment securities

 

469,150

 

 

468,721

 

 

466,759

 

 

 

469,150

 

 

466,759

 

Loans and leases held-for-investment

 

6,577,559

 

 

6,016,680

 

 

5,132,873

 

 

 

6,577,559

 

 

5,132,873

 

Allowance for loan and lease losses

 

(14,108

)

 

(13,374

)

 

(13,208

)

 

 

(14,108

)

 

(13,208

)

Loans and leases held-for-investment, net

 

6,563,451

 

 

6,003,306

 

 

5,119,665

 

 

 

6,563,451

 

 

5,119,665

 

Goodwill and other intangibles, net

 

65,854

 

 

66,357

 

 

67,863

 

 

 

65,854

 

 

67,863

 

Other assets

 

263,500

 

 

276,117

 

 

191,383

 

 

 

263,500

 

 

191,383

 

Total assets

$

7,765,810

 

$

7,198,449

 

$

6,035,655

 

 

$

7,765,810

 

$

6,035,655

 

 

 

 

 

 

 

 

Deposits

$

6,634,613

 

$

6,094,605

 

$

5,050,461

 

 

$

6,634,613

 

$

5,050,461

 

Borrowings, net

 

355,000

 

 

330,000

 

 

404,166

 

 

 

355,000

 

 

404,166

 

Other liabilities

 

154,916

 

 

169,337

 

 

101,674

 

 

 

154,916

 

 

101,674

 

Total liabilities

 

7,144,529

 

 

6,593,942

 

 

5,556,301

 

 

 

7,144,529

 

 

5,556,301

 

Preferred stock

 

116,079

 

 

116,064

 

 

38,468

 

 

 

116,079

 

 

38,468

 

Common shareholders' equity

 

505,202

 

 

488,443

 

 

440,886

 

 

 

505,202

 

 

440,886

 

Total shareholders' equity

 

621,281

 

 

604,507

 

 

479,354

 

 

 

621,281

 

 

479,354

 

Total liabilities and shareholders' equity

$

7,765,810

 

$

7,198,449

 

$

6,035,655

 

 

$

7,765,810

 

$

6,035,655

 

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

 

 

As of and For the
Three Months Ended

 

As of and For the
Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Interest income:

 

 

 

 

 

 

Loans and leases

$

59,936

 

$

61,551

 

$

53,238

 

 

$

239,328

 

$

185,349

 

Investments

 

3,827

 

 

3,993

 

 

3,706

 

 

 

16,324

 

 

10,683

 

Interest-earning deposits

 

1,711

 

 

2,188

 

 

1,218

 

 

 

6,795

 

 

3,754

 

Total interest income

 

65,474

 

 

67,732

 

 

58,162

 

 

 

262,447

 

 

199,786

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

Deposits

 

29,990

 

 

34,114

 

 

26,214

 

 

 

125,592

 

 

78,493

 

Borrowings

 

2,418

 

 

1,302

 

 

2,416

 

 

 

9,798

 

 

7,889

 

Total interest expense

 

32,408

 

 

35,416

 

 

28,630

 

 

 

135,390

 

 

86,382

 

Net interest income

 

33,066

 

 

32,316

 

 

29,532

 

 

 

127,057

 

 

113,404

 

Provision (credit) for loan and lease losses

 

728

 

 

(607

)

 

(581

)

 

 

(968

)

 

(205

)

Net interest income after provision for loan and lease losses

 

32,338

 

 

32,923

 

 

30,113

 

 

 

128,025

 

 

113,609

 

Non-interest income:

 

 

 

 

 

 

Investment management fees

 

8,862

 

 

8,902

 

 

9,225

 

 

 

36,442

 

 

37,647

 

Service charges on deposits

 

216

 

 

129

 

 

150

 

 

 

559

 

 

570

 

Net gain (loss) on the sale and call of debt securities

 

70

 

 

206

 

 

(76

)

 

 

416

 

 

(70

)

Swap fees

 

3,363

 

 

4,171

 

 

2,245

 

 

 

11,029

 

 

7,311

 

Commitment and other loan fees

 

537

 

 

464

 

 

375

 

 

 

1,788

 

 

1,411

 

Other income (loss)

 

443

 

 

371

 

 

(344

)

 

 

2,548

 

 

1,048

 

Total non-interest income

 

13,491

 

 

14,243

 

 

11,575

 

 

 

52,782

 

 

47,917

 

Non-interest expense:

 

 

 

 

 

 

Compensation and employee benefits

 

16,709

 

 

18,707

 

 

16,594

 

 

 

69,176

 

 

64,771

 

Premises and occupancy costs

 

1,933

 

 

1,704

 

 

1,594

 

 

 

6,741

 

 

5,580

 

Professional fees

 

2,482

 

 

1,305

 

 

1,191

 

 

 

6,188

 

 

4,729

 

FDIC insurance expense

 

1,830

 

 

994

 

 

1,210

 

 

 

5,292

 

 

4,543

 

General insurance expense

 

286

 

 

258

 

 

263

 

 

 

1,097

 

 

1,030

 

State capital shares tax

 

380

 

 

(720

)

 

125

 

 

 

420

 

 

1,521

 

Travel and entertainment expense

 

1,406

 

 

1,339

 

 

1,178

 

 

 

4,620

 

 

3,816

 

Intangible amortization expense

 

502

 

 

502

 

 

503

 

 

 

2,008

 

 

1,968

 

Change in fair value of acquisition earn out

 

 

 

(218

)

 

 

 

(218

)

Other operating expenses

 

4,591

 

 

3,684

 

 

3,863

 

 

 

16,607

 

 

13,417

 

Total non-interest expense

 

30,119

 

 

27,773

 

 

26,303

 

 

 

112,149

 

 

101,157

 

Income before tax

 

15,710

 

 

19,393

 

 

15,385

 

 

 

68,658

 

 

60,369

 

Income tax expense

 

1,106

 

 

3,059

 

 

265

 

 

 

8,465

 

 

5,945

 

Net income

$

14,604

 

$

16,334

 

$

15,120

 

 

$

60,193

 

$

54,424

 

Preferred stock dividends

 

1,962

 

 

1,962

 

 

679

 

 

 

5,753

 

 

2,120

 

Net income available to common shareholders

$

12,642

 

$

14,372

 

$

14,441

 

 

$

54,440

 

$

52,304

 

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

 

 

As of and For the
Three Months Ended

 

As of and For the
Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands, except per share data)

2019

 

2019

 

2018

 

2019

 

2018

Per share and share data:

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

Basic

$

0.45

 

$

0.52

 

$

0.52

 

 

$

1.95

 

$

1.90

 

Diluted

$

0.44

 

$

0.50

 

$

0.50

 

 

$

1.89

 

$

1.81

 

Book value per common share

$

17.21

 

$

16.67

 

$

15.27

 

 

$

17.21

 

$

15.27

 

Tangible book value per common share (1)

$

14.97

 

$

14.41

 

$

12.92

 

 

$

14.97

 

$

12.92

 

Common shares outstanding, at end of period

 

29,355,986

 

 

29,296,970

 

 

28,878,674

 

 

 

29,355,986

 

 

28,878,674

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

27,875,074

 

 

27,863,767

 

 

27,523,385

 

 

 

27,864,933

 

 

27,583,519

 

Diluted

 

29,020,118

 

 

28,778,671

 

 

28,786,353

 

 

 

28,833,335

 

 

28,833,396

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

Return on average assets (2)

 

0.78

%

 

0.94

%

 

1.04

%

 

 

0.89

%

 

1.04

%

Return on average common equity (2)

 

10.07

%

 

11.82

%

 

13.16

%

 

 

11.47

%

 

12.57

%

Net interest margin (2) (3)

 

1.84

%

 

1.94

%

 

2.12

%

 

 

1.97

%

 

2.26

%

Total revenue (1)

$

46,487

 

$

46,353

 

$

41,183

 

 

$

179,423

 

$

161,391

 

Pre-tax, pre-provision net revenue (1)

$

16,368

 

$

18,580

 

$

14,880

 

 

$

67,274

 

$

60,234

 

Bank efficiency ratio (1)

 

56.03

%

 

50.70

%

 

54.60

%

 

 

54.49

%

 

53.09

%

Non-interest expense to average assets (2)

 

1.60

%

 

1.59

%

 

1.81

%

 

 

1.66

%

 

1.93

%

 

 

 

 

 

 

 

Asset quality:

 

 

 

 

 

 

Non-performing loans

$

184

 

$

184

 

$

2,237

 

 

$

184

 

$

2,237

 

Non-performing assets

$

4,434

 

$

4,434

 

$

5,661

 

 

$

4,434

 

$

5,661

 

Other real estate owned

$

4,250

 

$

4,250

 

$

3,424

 

 

$

4,250

 

$

3,424

 

Non-performing assets to total assets

 

0.06

%

 

0.06

%

 

0.09

%

 

 

0.06

%

 

0.09

%

Non-performing loans to total loans

%

%

 

0.04

%

 

%

 

0.04

%

Allowance for loan and lease losses to loans

 

0.21

%

 

0.22

%

 

0.26

%

 

 

0.21

%

 

0.26

%

Allowance for loan and lease losses to non-performing loans

 

7,667.39

%

 

7,268.48

%

 

590.43

%

 

 

7,667.39

%

 

590.43

%

Net charge-offs (recoveries)

$

(6

)

$

35

 

$

(206

)

 

$

(1,868

)

$

1,004

 

Net charge-offs (recoveries) to average total loans (2)

%

%

 

(0.02

)%

 

 

(0.03

)%

 

0.02

%

 

 

 

 

 

 

 

Capital ratios: (4)

 

 

 

 

 

 

Tier 1 leverage ratio

 

7.54

%

 

7.91

%

 

7.28

%

 

 

7.54

%

 

7.28

%

Common equity tier 1 risk-based capital ratio

 

9.32

%

 

9.58

%

 

9.64

%

 

 

9.32

%

 

9.64

%

Tier 1 risk-based capital ratio

 

11.75

%

 

12.15

%

 

10.58

%

 

 

11.75

%

 

10.58

%

Total risk-based capital ratio

 

12.05

%

 

12.40

%

 

10.86

%

 

 

12.05

%

 

10.86

%

 

 

 

 

 

 

 

Investment Management Segment:

 

 

 

 

 

 

Assets under management

$

9,701,000

 

$

9,615,000

 

$

9,189,000

 

 

$

9,701,000

 

$

9,189,000

 

EBITDA (1)

$

713

 

$

932

 

$

1,890

 

 

$

5,824

 

$

6,900

 

(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.

(4)

Capital ratios are estimated until regulatory reports are filed.

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

 

 

Three Months Ended

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

(Dollars in thousands)

Average
Balance

 

Interest
Income (1)/
Expense

 

Average
Yield/
Rate (2)

 

Average
Balance

 

Interest
Income (1)/
Expense

 

Average
Yield/
Rate (2)

 

Average
Balance

 

Interest
Income (1)/
Expense

 

Average
Yield/
Rate (2)

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning deposits

$

404,169

 

$

1,687

 

1.66

%

 

$

388,274

 

$

2,144

 

2.19

%

 

$

211,333

 

$

1,162

 

2.18

%

Federal funds sold

 

6,994

 

 

25

 

1.42

%

 

 

8,424

 

 

44

 

2.07

%

 

 

9,959

 

 

57

 

2.27

%

Debt securities available-for-sale

 

251,767

 

 

1,994

 

3.14

%

 

 

262,665

 

 

2,085

 

3.15

%

 

 

260,877

 

 

2,045

 

3.11

%

Debt securities held-to-maturity

 

206,383

 

 

1,653

 

3.18

%

 

 

174,331

 

 

1,537

 

3.50

%

 

 

155,220

 

 

1,426

 

3.64

%

Equity securities

 

1,898

 

 

4

 

0.84

%

 

 

4,720

 

 

12

 

1.01

%

 

 

13,543

 

 

77

 

2.26

%

FHLB stock

 

20,930

 

 

198

 

3.75

%

 

 

10,585

 

 

382

 

14.32

%

 

 

15,970

 

 

186

 

4.62

%

Total loans and leases

 

6,248,106

 

 

59,936

 

3.81

%

 

 

5,776,652

 

 

61,552

 

4.23

%

 

 

4,853,414

 

 

53,237

 

4.35

%

Total interest-earning assets

 

7,140,247

 

 

65,497

 

3.64

%

 

 

6,625,651

 

 

67,756

 

4.06

%

 

 

5,520,316

 

 

58,190

 

4.18

%

Other assets

 

326,013

 

 

 

 

 

288,216

 

 

 

 

 

239,506

 

 

 

Total assets

$

7,466,260

 

 

 

 

$

6,913,867

 

 

 

 

$

5,759,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking accounts

$

1,446,394

 

$

6,178

 

1.69

%

 

$

1,116,624

 

$

5,795

 

2.06

%

 

$

722,386

 

$

3,976

 

2.18

%

Money market deposit accounts

 

3,123,162

 

 

15,727

 

2.00

%

 

 

3,106,186

 

 

18,870

 

2.41

%

 

 

2,605,148

 

 

14,844

 

2.26

%

Certificates of deposit

 

1,358,319

 

 

8,086

 

2.36

%

 

 

1,462,521

 

 

9,449

 

2.56

%

 

 

1,220,839

 

 

7,394

 

2.40

%

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

FHLB borrowings

 

465,489

 

 

2,417

 

2.06

%

 

 

224,130

 

 

1,302

 

2.30

%

 

 

352,337

 

 

1,811

 

2.04

%

Line of credit borrowings

 

 

 

 

%

 

 

 

 

 

%

 

 

3,652

 

 

51

 

5.54

%

Subordinated notes payable, net

 

 

 

 

%

 

 

 

 

 

%

 

 

34,883

 

 

554

 

6.30

%

Total interest-bearing liabilities

 

6,393,364

 

 

32,408

 

2.01

%

 

 

5,909,461

 

 

35,416

 

2.38

%

 

 

4,939,245

 

 

28,630

 

2.30

%

Noninterest-bearing deposits

 

285,027

 

 

 

 

 

268,013

 

 

 

 

 

249,330

 

 

 

Other liabilities

 

173,977

 

 

 

 

 

137,934

 

 

 

 

 

97,458

 

 

 

Shareholders' equity

 

613,892

 

 

 

 

 

598,459

 

 

 

 

 

473,789

 

 

 

Total liabilities and shareholders' equity

$

7,466,260

 

 

 

 

$

6,913,867

 

 

 

 

$

5,759,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

 

$

33,089

 

 

 

 

$

32,340

 

 

 

 

$

29,560

 

 

Net interest spread

 

 

1.63

%

 

 

 

1.68

%

 

 

 

1.88

%

Net interest margin (1)

 

 

1.84

%

 

 

 

1.94

%

 

 

 

2.12

%

(1)

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

(2)

Annualized

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

 

 

Years Ended

 

December 31, 2019

 

December 31, 2018

(Dollars in thousands)

Average
Balance

 

Interest
Income (1)/
Expense

 

Average
Yield/
Rate

 

Average
Balance

 

Interest
Income (1)/
Expense

 

Average
Yield/
Rate

Assets

 

 

 

 

 

 

 

Interest-earning deposits

$

313,413

 

$

6,628

 

2.11

%

 

$

188,921

 

$

3,598

 

1.90

%

Federal funds sold

 

8,803

 

 

167

 

1.90

%

 

 

8,315

 

 

156

 

1.88

%

Debt securities available-for-sale

 

250,064

 

 

8,119

 

3.25

%

 

 

205,652

 

 

6,195

 

3.01

%

Debt securities held-to-maturity

 

193,443

 

 

6,921

 

3.58

%

 

 

90,895

 

 

3,399

 

3.74

%

Equity securities

 

6,733

 

 

115

 

1.71

%

 

 

10,517

 

 

277

 

2.63

%

FHLB stock

 

18,043

 

 

1,270

 

7.04

%

 

 

15,136

 

 

924

 

6.10

%

Total loans and leases

 

5,669,507

 

 

239,328

 

4.22

%

 

 

4,500,117

 

 

185,349

 

4.12

%

Total interest-earning assets

 

6,460,006

 

 

262,548

 

4.06

%

 

 

5,019,553

 

 

199,898

 

3.98

%

Other assets

 

281,171

 

 

 

 

 

221,467

 

 

 

Total assets

$

6,741,177

 

 

 

 

$

5,241,020

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest-bearing checking accounts

$

1,058,064

 

$

21,480

 

2.03

%

 

$

612,921

 

$

11,440

 

1.87

%

Money market deposit accounts

 

2,943,541

 

 

69,336

 

2.36

%

 

 

2,429,203

 

 

45,106

 

1.86

%

Certificates of deposit

 

1,371,038

 

 

34,776

 

2.54

%

 

 

1,071,556

 

 

21,947

 

2.05

%

Borrowings:

 

 

 

 

 

 

 

FHLB borrowings

 

394,480

 

 

8,639

 

2.19

%

 

 

325,356

 

 

5,555

 

1.71

%

Line of credit borrowings

 

1,234

 

 

68

 

5.51

%

 

 

2,568

 

 

119

 

4.63

%

Subordinated notes payable, net

 

17,335

 

 

1,091

 

6.29

%

 

 

34,807

 

 

2,215

 

6.36

%

Total interest-bearing liabilities

 

5,785,692

 

 

135,390

 

2.34

%

 

 

4,476,411

 

 

86,382

 

1.93

%

Noninterest-bearing deposits

 

267,846

 

 

 

 

 

244,090

 

 

 

Other liabilities

 

128,618

 

 

 

 

 

75,473

 

 

 

Shareholders' equity

 

559,021

 

 

 

 

 

445,046

 

 

 

Total liabilities and shareholders' equity

$

6,741,177

 

 

 

 

$

5,241,020

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

 

$

127,158

 

 

 

 

$

113,516

 

 

Net interest spread

 

 

1.72

%

 

 

 

2.05

%

Net interest margin (1)

 

 

1.97

%

 

 

 

2.26

%

(1)

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

TRISTATE CAPITAL HOLDINGS, INC.

LOAN COMPOSITION (UNAUDITED)

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

(Dollars in thousands)

Loan
Balance

Percent of
Loans

 

Loan
Balance

Percent of
Loans

 

Loan
Balance

Percent of
Loans

Private banking loans

$

3,695,402

 

56.2

%

 

$

3,368,142

 

56.0

%

 

$

2,869,543

 

55.9

%

Middle-market banking loans:

 

 

 

 

 

 

 

 

Commercial and industrial

 

1,085,709

 

16.5

%

 

 

992,508

 

16.5

%

 

 

785,320

 

15.3

%

Commercial real estate

 

1,796,448

 

27.3

%

 

 

1,656,030

 

27.5

%

 

 

1,478,010

 

28.8

%

Total middle-market banking loans

 

2,882,157

 

43.8

%

 

 

2,648,538

 

44.0

%

 

 

2,263,330

 

44.1

%

Loans and leases held-for-investment

$

6,577,559

 

100.0

%

 

$

6,016,680

 

100.0

%

 

$

5,132,873

 

100.0

%

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENTS OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

 

 

Three Months Ended December 31, 2019

 

Year Ended December 31, 2019

(Dollars in thousands)

Bank

Investment
Management

Parent
and Other

Consolidated

 

Bank

Investment
Management

Parent
and Other

Consolidated

Income statement data:

 

 

 

 

 

 

 

 

 

Interest income

$

65,470

 

$

 

$

4

 

$

65,474

 

 

$

262,332

 

$

 

$

115

 

$

262,447

 

Interest expense

 

32,445

 

 

 

(37

)

 

32,408

 

 

 

134,336

 

 

 

1,054

 

 

135,390

 

Net interest income (loss)

 

33,025

 

 

 

41

 

 

33,066

 

 

 

127,996

 

 

 

(939

)

 

127,057

 

Provision (credit) for loan and lease losses

 

728

 

 

 

 

728

 

 

 

(968

)

 

 

 

(968

)

Net interest income (loss) after provision for loan and lease losses

 

32,297

 

 

 

41

 

 

32,338

 

 

 

128,964

 

 

 

(939

)

 

128,025

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Investment management fees

 

 

8,977

 

 

(115

)

 

8,862

 

 

 

 

36,889

 

 

(447

)

 

36,442

 

Net gain on the sale and call of debt securities

 

70

 

 

 

 

70

 

 

 

416

 

 

 

 

416

 

Other non-interest income

 

4,585

 

 

14

 

 

(40

)

 

4,559

 

 

 

15,051

 

 

31

 

 

842

 

 

15,924

 

Total non-interest income

 

4,655

 

 

8,991

 

 

(155

)

 

13,491

 

 

 

15,467

 

 

36,920

 

 

395

 

 

52,782

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

 

502

 

 

 

502

 

 

 

 

2,008

 

 

 

2,008

 

Other non-interest expense

 

21,073

 

 

8,388

 

 

156

 

 

29,617

 

 

 

77,945

 

 

31,561

 

 

635

 

 

110,141

 

Total non-interest expense

 

21,073

 

 

8,890

 

 

156

 

 

30,119

 

 

 

77,945

 

 

33,569

 

 

635

 

 

112,149

 

Income (loss) before tax

 

15,879

 

 

101

 

 

(270

)

 

15,710

 

 

 

66,486

 

 

3,351

 

 

(1,179

)

 

68,658

 

Income tax expense (benefit)

 

1,190

 

 

88

 

 

(172

)

 

1,106

 

 

 

8,015

 

 

918

 

 

(468

)

 

8,465

 

Net income (loss)

$

14,689

 

$

13

 

$

(98

)

$

14,604

 

 

$

58,471

 

$

2,433

 

$

(711

)

$

60,193

 

 

Three Months Ended December 31, 2018

 

Year Ended December 31, 2018

(Dollars in thousands)

Bank

Investment
Management

Parent
and Other

Consolidated

 

Bank

Investment
Management

Parent
and Other

Consolidated

Income statement data:

 

 

 

 

 

 

 

 

 

Interest income

$

58,086

 

$

 

$

76

 

$

58,162

 

 

$

199,510

 

$

 

$

276

 

$

199,786

 

Interest expense

 

28,028

 

 

 

602

 

 

28,630

 

 

 

84,055

 

 

 

2,327

 

 

86,382

 

Net interest income (loss)

 

30,058

 

 

 

(526

)

 

29,532

 

 

 

115,455

 

 

 

(2,051

)

 

113,404

 

Provision (credit) for loan losses

 

(581

)

 

 

 

(581

)

 

 

(205

)

 

 

 

(205

)

Net interest income (loss) after provision for loan losses

 

30,639

 

 

 

(526

)

 

30,113

 

 

 

115,660

 

 

 

(2,051

)

 

113,609

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Investment management fees

 

 

9,318

 

 

(93

)

 

9,225

 

 

 

 

37,939

 

 

(292

)

 

37,647

 

Net loss on the sale and call of debt securities

 

(76

)

 

 

 

(76

)

 

 

(70

)

 

 

 

(70

)

Other non-interest income

 

3,237

 

 

 

(811

)

 

2,426

 

 

 

11,112

 

 

1

 

 

(773

)

 

10,340

 

Total non-interest income

 

3,161

 

 

9,318

 

 

(904

)

 

11,575

 

 

 

11,042

 

 

37,940

 

 

(1,065

)

 

47,917

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

 

503

 

 

 

503

 

 

 

 

1,968

 

 

 

1,968

 

Change in fair value of acquisition earn out

 

 

(218

)

 

 

(218

)

 

 

 

(218

)

 

 

(218

)

Other non-interest expense

 

18,179

 

 

7,772

 

 

67

 

 

26,018

 

 

 

67,190

 

 

31,760

 

 

457

 

 

99,407

 

Total non-interest expense

 

18,179

 

 

8,057

 

 

67

 

 

26,303

 

 

 

67,190

 

 

33,510

 

 

457

 

 

101,157

 

Income (loss) before tax

 

15,621

 

 

1,261

 

 

(1,497

)

 

15,385

 

 

 

59,512

 

 

4,430

 

 

(3,573

)

 

60,369

 

Income tax expense (benefit)

 

371

 

 

(207

)

 

101

 

 

265

 

 

 

5,856

 

 

579

 

 

(490

)

 

5,945

 

Net income (loss)

$

15,250

 

$

1,468

 

$

(1,598

)

$

15,120

 

 

$

53,656

 

$

3,851

 

$

(3,083

)

$

54,424

 

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 common equity,” “tangible book value per common share,” “EBITDA,” “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 common equity” is defined as common shareholders’ equity reduced by intangible assets, including goodwill. We believe this measure is important to management and investors to better understand and assess changes from period to period in common shareholders’ equity exclusive of changes in intangible assets. Intangible assets are created when we buy businesses which add relationships and revenue to our Company. Intangible assets have the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

 

“Tangible book value per common share” is defined common shareholders’ equity reduced by intangible assets, including goodwill, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets.

 

“EBITDA” is defined as net income before interest expense, income taxes, depreciation and amortization expenses. We use EBITDA particularly to assess the strength of our investment management business. We believe this measure is important because it allows management and investors to better assess our investment management performance in relation to our core operating earnings, excluding certain non-cash items and the volatility that is associated with certain discrete items that are unrelated to our core business.

 

“Total revenue” is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities. 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 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 gains and losses on the sale and call of investment securities. 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, particularly at the Bank, allows management and investors to better assess our operating expenses in relation to our core operating revenue, particularly by the Bank.

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

December 31,

 

September 30,

 

December 31,

(Dollars in thousands, except per share data)

2019

 

2019

 

2018

Tangible common equity and tangible book value per common share:

 

 

 

Common shareholders' equity

$

505,202

 

$

488,443

 

$

440,886

 

Less: goodwill and intangible assets

 

65,854

 

 

66,357

 

 

67,863

 

Tangible common equity

$

439,348

 

$

422,086

 

$

373,023

 

Common shares outstanding

 

29,355,986

 

 

29,296,970

 

 

28,878,674

 

Tangible book value per common share

$

14.97

 

$

14.41

 

$

12.92

 

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Investment Management EBITDA:

 

 

 

 

 

 

Net income

$

13

 

$

316

 

$

1,468

 

 

$

2,433

 

$

3,851

 

Interest expense

 

 

 

 

 

 

Income taxes expense (benefit)

 

88

 

 

3

 

 

(207

)

 

 

918

 

 

579

 

Depreciation expense

 

110

 

 

111

 

 

126

 

 

 

465

 

 

502

 

Intangible amortization expense

 

502

 

 

502

 

 

503

 

 

 

2,008

 

 

1,968

 

EBITDA

$

713

 

$

932

 

$

1,890

 

 

$

5,824

 

$

6,900

 

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Total revenue and pre-tax, pre-provision net revenue:

 

 

 

 

 

 

Net interest income

$

33,066

 

$

32,316

 

$

29,532

 

 

$

127,057

 

$

113,404

 

Total non-interest income

 

13,491

 

 

14,243

 

 

11,575

 

 

 

52,782

 

 

47,917

 

Less: net gain (loss) on the sale and call of debt securities

 

70

 

 

206

 

 

(76

)

 

 

416

 

 

(70

)

Total revenue

$

46,487

 

$

46,353

 

$

41,183

 

 

$

179,423

 

$

161,391

 

Less: total non-interest expense

 

30,119

 

 

27,773

 

 

26,303

 

 

 

112,149

 

 

101,157

 

Pre-tax, pre-provision net revenue

$

16,368

 

$

18,580

 

$

14,880

 

 

$

67,274

 

$

60,234

 

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

 

Years Ended

 

December 31,

 

September 30,

 

December 31,

 

 

December 31,

 

December 31,

(Dollars in thousands)

2019

 

2019

 

2018

 

 

2019

 

2018

Bank total revenue:

 

 

 

 

 

 

Net interest income

$

33,025

 

$

32,265

 

$

30,058

 

 

$

127,996

 

$

115,455

 

Total non-interest income

 

4,655

 

 

5,319

 

 

3,161

 

 

 

15,467

 

 

11,042

 

Less: net gain (loss) on the sale and call of debt securities

 

70

 

 

206

 

 

(76

)

 

 

416

 

 

(70

)

Bank total revenue

$

37,610

 

$

37,378

 

$

33,295

 

 

$

143,047

 

$

126,567

 

 

 

 

 

 

 

 

Bank efficiency ratio:

 

 

 

 

 

 

Total non-interest expense (numerator)

$

21,073

 

$

18,949

 

$

18,179

 

 

$

77,945

 

$

67,190

 

Bank total revenue (denominator)

$

37,610

 

$

37,378

 

$

33,295

 

 

$

143,047

 

$

126,567

 

Bank efficiency ratio

 

56.03

%

 

50.70

%

 

54.60

%

 

 

54.49

%

 

53.09

%

 

Contacts

MEDIA CONTACT
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)
jack@hornercom.com

INVESTOR RELATIONS CONTACT
Casteel Schoenborn
Jeff Schoenborn and Kate Croft
888-609-8351
TSC@csirfirm.com

Contacts

MEDIA CONTACT
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)
jack@hornercom.com

INVESTOR RELATIONS CONTACT
Casteel Schoenborn
Jeff Schoenborn and Kate Croft
888-609-8351
TSC@csirfirm.com