CommunityOne Bancorp ("Company") (NASDAQ:COB), the holding company
for CommunityOne Bank, N.A. ("Bank"), today announced its unaudited
financial results for the quarter ended September 30, 2015.
Highlights include:
- Core net income in 3Q 2015 was $2.9 million, or $0.12
per diluted share, an increase of 24% from core net income in 3Q
2014. Net income in 3Q 2015 was $1.5 million, or $0.06 per diluted
share.
- Net income before tax was $4.9 million in 3Q 2015, an
increase of 230% from 3Q 2014.
- Loans grew at a 21% annualized rate in 3Q 2015, the 6th
consecutive quarter of double digit annualized loan growth. Organic
loans, which exclude purchased residential mortgage pools, grew at
a 28% annualized growth rate.
- Year over year Charlotte MSA loan growth was 36%;
Raleigh/Durham MSA loan growth was 124%; Greensboro/Winston Salem
MSA loan growth was 5%.
- Deposits grew at a 9% annualized rate during 3Q 2015.
Low cost core deposits grew at a 5% annualized rate and
noninterest-bearing deposits grew by $7.9 million, a 9% annualized
rate.
- Net interest income grew 9% from 3Q 2014 to $17.3
million. Net interest margin was 3.37% in 3Q 2015, down 1 basis
point from 3Q 2014.
- Credit performance was strong during 3Q 2015, as
nonperforming loans fell to 1.2% of total loans, net recovery of
provision for loan losses was $0.1 million and the annualized 2015
year to date net charge-off rate was 11 basis points of average
loans.
- Nonperforming assets fell 23% from a year ago and were
1.6% of total assets at quarter end.
- Noninterest income grew 25% and core noninterest income
grew 19% from 3Q 2014.
- Noninterest expenses were $2.6 million, or 13%, lower
than 3Q 2014, and core noninterest expenses, excluding nonrecurring
items, were $0.5 million, or 3%, lower than 3Q 2014.
"I am very pleased to report a 24% increase in core net income
driven by 21% annualized loan growth this quarter, with continued
strength in the key metro markets of Charlotte, Raleigh,
Greensboro/Winston-Salem and the Commercial business overall. We
now have exceeded our 2015 full year loan growth goal of 10-12%. We
were also able to exceed our 2015 fee growth goal of 10-12% for the
first time this quarter with growth in core noninterest income of
19% over last year, and I am excited about the excellent momentum
we have achieved in our Mortgage, SBA and Wealth Management
businesses," noted Bob Reid, President and CEO.
Third Quarter Financial Results
Results of Operations
Net income was $1.5 million for the third quarter of 2015,
compared to $2.5 million in the second quarter of 2015 and $1.8
million in the third quarter of 2014. Core net income, which
excludes nonrecurring income and expenses, was $2.9 million for the
third quarter of 2015, $0.6 million, or 24%, better than the $2.4
million in the third quarter of 2014, and $0.4 million, or 16%,
better than the $2.5 million in the second quarter of 2015. Net
income before tax was $4.9 million for the third quarter of 2015,
an increase of 230%, or $3.5 million, from the third quarter of
2014. Fully diluted net income per share was $0.06 per share in the
third quarter of 2015, compared to $0.08 per share and $0.10 per
share in the third quarter of 2014 and the second quarter of 2015,
respectively. Core fully diluted net income per share for the third
quarter was $0.12 per share, compared to $0.11 and $0.10 in the
third quarter of 2014 and the second quarter of 2015,
respectively.
Non-core items in the third quarter were a $0.3 million bargain
purchase gain resulting from the finalization during the third
quarter of the acquisition accounting for the CertusBank, N.A.
branch and deposit purchase we completed at the end of last
quarter, a $2.3 million income tax expense from the revaluation of
state deferred tax assets resulting from the reduction in the North
Carolina tax rate for 2016 during the third quarter and a $0.7
million income tax benefit from the release of a deferred tax asset
valuation allowance no longer required.
Third quarter financial results, as compared to the same quarter
last year, reflected continued improvements in the asset quality of
the loan portfolio and a $0.1 million recovery of loan loss
provision. Net interest income grew $1.5 million, or 9%, from the
third quarter of 2014 on a $193.5 million, or 15%, increase in
average loans. Core noninterest income, which excludes securities
gains and losses and the bargain purchase gain, grew $0.7 million,
or 19%, from the third quarter of 2015 on stronger service charge
revenue and growth in mortgage and SBA loan sales. Noninterest
expense fell by $2.6 million, or 13%, as compared to the same
quarter last year, primarily related to reductions in branch
operating costs, loan collection costs and nonrecurring expenses
from the departure of the Company's CEO in the third quarter of
2014, offset by increases in OREO expenses and commercial and
mortgage personnel costs.
As compared to the second quarter of 2015, net interest income
grew $0.5 million, or 3%, on an increase in average loans of $72.4
million, or 5%. Core noninterest income grew $0.5 million, or 13%,
from last quarter on increases in service charges revenue.
Noninterest expense fell by $0.4 million, or 2%, from last quarter,
primarily related to reduced loan collection costs, a gain on sale
of a facility in the second quarter that offset occupancy costs in
that quarter, and changes to retiree benefit plans made during the
third quarter, offset by increased commercial and mortgage
origination personnel costs and OREO costs.
Loan and Deposits
Strong loan growth continued this quarter across all business
lines, reflecting sustained loan demand in our metro markets,
portfolio growth across all our businesses, and the impact of
personnel additions and market expansion. Loans held for investment
grew 5% in the third quarter, an annualized growth rate of 21% and
our sixth consecutive quarter of double digit annualized growth.
Year to date, loans held for investment have grown by $164.7
million, or 12%, exceeding our full year 2015 growth goal of
10-12%. Loans held for investment grew by $76.6 million in the
third quarter to $1.52 billion, compared to $1.45 billion at the
end of the second quarter. Excluding our purchased residential
mortgage loan pools, our total organic loan growth was even
stronger at $86.9 million during the quarter, an annualized growth
rate of 28%. Pass rated loans grew $79.8 million in the third
quarter, an annualized growth rate of 23%, reflecting continued
improvement in the asset quality of the loan portfolio. Loans held
for investment to total deposits increased to 80% in the third
quarter, improved from 75% a year ago and the highest since
2010.
Our accelerated loan growth was a result of the success of our
investments in expanded commercial, commercial real estate and
residential mortgage lending capacity in our metro markets of
Charlotte, Raleigh/Durham and Greensboro/Winston-Salem, the top
three MSAs in terms of population in North Carolina, as well as
Charleston, South Carolina, one of the largest and fastest growing
markets in that state. At the end of the third quarter, the loan
portfolio in these metro markets made up 58% of our organic loan
portfolio (which excludes our purchased residential mortgage
loans), up from 52% a year ago. Key drivers of growth were the
Charlotte and Raleigh metro areas with year over year loan
portfolio increases of 36% and 124%, respectively. During the
quarter we added two additional commercial lenders in Charleston
and one new residential mortgage loan officer in Greensboro. We
expect these new staff will sustain our accelerated pace of loan
growth and enhance our mortgage loan income in coming quarters.
Total deposits increased $41.2 million, a 9% annualized growth
rate, in the third quarter. Total deposits were $1.90 billion at
the end of the third quarter. Low cost core deposits, which exclude
time and brokered deposits, grew $14.1 million during the third
quarter, an annualized growth rate of 5%. Noninterest-bearing
deposits grew $7.9 million in the third quarter, an annualized
growth rate of 9%, as a result of new commercial relationships and
the growth of our treasury management products.
Net Interest Income
Third quarter net interest income was $17.3 million, an increase
of $1.5 million, or 9%, as compared to $15.8 million in the third
quarter of last year, as a result of a $201.6 million increase in
average loans and securities and an increase in interest recoveries
of $0.3 million, offset by a decrease in net loan yield of 12 basis
points from lower rate origination and the fixed/variable loan mix,
and a 7 basis point reduction in purchased impaired loan accretion.
Net interest income was $0.5 million higher as compared to the
second quarter of 2015, on an increase in average loans and
securities of $81.7 million, offset by the impact of a 14 basis
point decline in net loan yield in the third quarter driven by
reduced new loan origination yields and the fixed/variable loan
mix, and a 3 basis point decrease in purchased impaired loan
accretion. Accretion, net of contractual interest collected, on
purchased impaired loans was $0.5 million in the third quarter of
2015, compared to $0.6 million and $0.8 million in the second
quarter of 2015 and the third quarter of 2014, respectively.
Our net interest margin was 3.37% for the third quarter of 2015,
down 1 basis point from the third quarter of 2014, and down 6 basis
points from the second quarter of this year. The decline in net
interest margin as compared to the third quarter of 2014 was the
result of the decline in net loan yields discussed above, offset by
an improved asset mix as we grew average loans by $193.5 million
(15%) and reduced lower yielding cash and securities balances by
$24.5 million, and a 2 basis point decline in the cost of interest
bearing deposits. The decrease in the net interest margin in the
third quarter of 2015 from the prior quarter was the result of the
decline in loan yields discussed above, offset by an improved asset
mix as we grew average loans by $72.4 million and a 2 basis point
decline in the average cost of interest bearing deposits. The
deposit portfolio continues to perform to our expectations,
including the deposit portfolio acquired from CertusBank, N.A. at
the end of June. The cost of interest-bearing deposits was 46 basis
points during the third quarter of 2015, a decrease of two basis
points from both the second quarter of 2015 and the third quarter
of 2014. The cost of all deposit funding also declined by two basis
points from both the second quarter of 2015 and the third quarter
of 2014 to 37 basis points.
Asset Quality and Provision for Loan Losses
Nonperforming assets, including nonaccruing loans, loans over 90
days delinquent and still accruing not accounted for under
purchased impaired loan accounting, and OREO and repossessed loan
collateral, continued to decline during the third quarter. These
assets fell to $37.6 million, or 1.6% of total assets, at the end
of the third quarter, compared to $48.8 million, or 2.4% of total
assets, at the end of the third quarter a year ago. OREO and
repossessed loan collateral fell during the third quarter to $19.2
million, and have been reduced by $1.1 million, or 6%, compared to
the same quarter last year. For the third quarter, we had OREO
write-downs, net of gains on the sale of OREO, of $449
thousand.
The allowance for loan losses was $17.2 million, or 1.13% of
loans held for investment, at the end of the third quarter,
compared to $18.0 million, or 1.24% at the end of the previous
quarter. Recovery of provision for loan losses was $0.1 million in
the third quarter compared to recoveries of provision of $0.8
million and $1.7 million in the second quarter of 2015 and the
third quarter of 2014, respectively.
Net charge-offs in the third quarter were $0.7 million, and
third quarter annualized net charge-offs as a percentage of average
loans were 0.20%, compared to 2015 year to date annualized net
charge-offs of 0.11% and 0.08% for all of 2014.
Noninterest Income
Total noninterest income was $5.0 million in the third quarter,
which includes a nonrecurring $0.3 million bargain purchase gain
resulting from the finalization during the third quarter of the
acquisition accounting for the CertusBank, N.A. branch and deposit
purchase we completed at the end of last quarter. Total noninterest
income increased $1.0 million, or 25%, as compared to $4.0 million
in the third quarter of last year, and increased $0.8 million, or
20%, as compared to $4.2 million in the second quarter of 2015. For
the third quarter, core noninterest income was $4.7 million, a 19%,
or $0.7 million, increase from the comparable quarter in 2014, and
an increase of $0.5 million, or 13%, from last quarter.
Mortgage and SBA loan income increased by 86% in the third
quarter from the same quarter in 2014, to $0.4 million, driven by a
44% increase in mortgage loan origination and a 58% increase in
mortgage loans originated for sale to investors. During the
quarter, we originated $58.5 million of mortgage loans, including
$25.7 million of loans for sale to investors. Production from our
retail non-branch channel was $19.3 million in the quarter, a 390%
increase from the same quarter last year.
Third quarter total service charges were $0.3 million higher
than the same quarter last year on increased overdraft activity in
the deposit portfolio and other service charge changes during the
quarter. Cardholder and merchant services income grew 6% over the
same quarter last year on increased transaction volume. Trust and
investment services income in the third quarter grew 9% from the
comparable quarter last year, principally as a result of increased
assets under management and increased securities sales
commissions.
Noninterest Expense
Noninterest expense fell by $2.6 million, or 13%, as compared to
the same quarter last year, primarily related to reductions in
branch operating costs, changes to retiree benefit plans made
during the third quarter of 2015, reduced loan collection costs and
nonrecurring expenses from the departure of the Company's CEO in
the third quarter of 2014, offset by increases in OREO expenses and
commercial and mortgage personnel costs. Pre-credit and
nonrecurring ("PCNR") noninterest expense, which excludes credit
related expenses (OREO and loan collection expenses) and
nonrecurring expenses, was $16.9 million in the third quarter, a
decrease of $0.8 million from the third quarter of 2014.
As compared to the second quarter, noninterest expense fell by
$0.4 million, or 2%, primarily related to reduced loan collection
costs and changes to retiree benefit plans made during the third
quarter, offset by a gain on sale of a facility in the second
quarter that offset occupancy costs in that quarter, increased
commercial and mortgage origination personnel costs and OREO
costs. PCNR noninterest expense fell by $0.1 million in the
third quarter from the prior quarter.
PCNR noninterest expense to average assets fell to 2.92% in the
third quarter from 3.03% and 3.55% in the second quarter of 2015
and the third quarter of 2014, respectively. Average full time
equivalent employees were 551, down two from the second quarter of
this year and down 17, or 3%, from a year ago.
Conference Call
A pre-recorded conference call will be held at 11:00 a.m.,
Eastern time this morning October 30th, 2015. Interested parties
should dial in five to ten minutes prior to the scheduled start
time to 1-866-235-9913. The webcast may be accessed via the
Investor Relations section of the Company's website at
www.community1.com. The webcast replay will be available until
October 30, 2016. The teleconference replay will be available
one hour after the end of the conference through November 14,
2015. To access the teleconference replay, dial toll free
1-877-344-7529 and provide Conference ID Number 10071667.
About CommunityOne Bancorp
CommunityOne Bancorp is the Charlotte, North Carolina-based
bank holding company for CommunityOne Bank, N.A. Founded in 1907 as
First National Bank of Asheboro, CommunityOne has grown into a $2.4
billion community bank, operating 45 branches throughout central,
southern and western North Carolina, and Loan Production Offices in
Raleigh, NC, Winston-Salem, NC, and Charleston, SC. Through its
network of branches and LPOs, CommunityOne offers a variety of
consumer, mortgage and commercial banking services to retail and
business customers, including loans, deposits, treasury management,
wealth and online banking. CommunityOne Bancorp's shares are traded
on the NASDAQ stock market under the symbol, "COB."
Non-GAAP Financial Measures
Statements in this press release include certain non-GAAP
financial measures, which should be read along with the
accompanying tables that provide a reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP
measures. The non-GAAP financial measures referenced in this
press release include: tangible shareholders' equity, core net
income, core net income before tax, core noninterest income, core
return on average assets, core net income per share - diluted, core
noninterest expense, and PCNR noninterest expense. The Company
believes that these non-GAAP financial measures provide information
useful to investors in understanding our underlying performance and
business trends as they facilitate comparisons with the performance
of others in the financial services industry. However, these
non-GAAP financial measures should not be considered an alternative
to GAAP, and investors should consider the Company's performance
and financial condition as reported under GAAP as well as other
relevant information when assessing the overall performance and
financial condition of the Company.
Forward Looking Statements
Information in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
include projections, predictions, expectations, or beliefs about
events or results or otherwise are not statements of historical
facts, and usually can be identified by the use of forward-looking
terminology, such as "believes," "expects," or "are expected to,"
"plans," "projects," "goals," "estimates," "may," "should,"
"could," "would," "intends to," "outlook" or "anticipates," or
variations of these and similar words, or by discussions of
strategies that involve risks and uncertainties that could cause
actual results to differ materially, including, without limitation,
our ability to continue to grow our business internally and through
acquisition and successful integration of any acquired entities
while controlling our costs; having the financial and management
resources in the amount, at the times and on the terms required to
support our future business; the accuracy of our assumptions and
judgments about the collectability of our loan portfolio, including
the creditworthiness of our borrowers and the value of real estate
and other assets, which could affect repayment of such borrowers'
outstanding loans; material changes in the quality of our loan
portfolio and the resulting credit related losses and expenses; the
accuracy of our assumptions relating to the establishment of our
ALL; adverse changes in the value of real estate in our market
areas; adverse changes in the housing markets, or an increase in
interest rates, either of which may reduce demand for mortgages;
changes in interest rates, spreads on earning assets and
interest-bearing liabilities, the shape of the yield curve and
interest rate sensitivity; a prolonged period of low interest
rates; declines in the value of our OREO; the accuracy of our
assumptions relating to our ability to use net operating loss
carryforwards to reduce future tax payments; the loss of one or
more members of executive management and our ability to recruit and
retain key lenders and other employees; less favorable general
economic conditions, either nationally or regionally; resulting in,
among other things, a reduced demand for our credit or other
services and thus reduced origination volume; increased competitive
pressures in the banking industry or in COB's markets affecting
pricing or product and service offerings; our ability to respond to
rapid technological developments and changes; disruptions in or
manipulations of our operating systems; information security and
cyber security risks impacting us or our vendors, including
"hacking" and "identity theft," that could adversely affect our
business and our reputation; the loss or disruption of the services
provided by one or more of our critical vendors; our ability to
achieve our targeted reductions in costs and expenses; the impact
of laws and regulatory requirements, including the Basel III
capital rules, Bank Secrecy Act requirements, and regulations
required by the Dodd-Frank Act; changes in trade, monetary and
fiscal policies and laws, including interest rate policies of the
Federal Reserve Board; changes in accounting principles and
standards; and our success at managing the risks involved in the
foregoing.
Although the Company believes that its expectations with respect
to such forward-looking statements are based upon reasonable
assumptions within the bounds of its existing knowledge of its
business and operations, there can be no assurance that actual
results of the Company will not differ materially from those
expressed or implied by such forward-looking
statements. Factors that could cause actual events or results
to differ significantly from those described in the forward-looking
statements include, but are not limited to those described in the
cautionary language included under the headings "Risk Factors" and
in other sections of the Company's filings with the SEC, including
its Annual Report on Form 10-K for the fiscal year ended December
31, 2014 and its quarterly reports on Form 10-Q. The forward
looking statements in this press release speak only as of the date
of the press release and the Company does not assume any obligation
to update them after such date.
Quarterly Results of
Operations |
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
|
|
|
|
|
|
Interest Income |
|
|
|
|
|
Interest and fees on loans |
$ 16,395 |
$ 16,006 |
$ 15,873 |
$ 15,871 |
$ 14,855 |
Interest and dividends on investment
securities |
3,219 |
3,116 |
3,224 |
3,242 |
3,400 |
Other interest income |
216 |
208 |
171 |
158 |
140 |
Total interest income |
19,830 |
19,330 |
19,268 |
19,271 |
18,395 |
Interest Expense |
|
|
|
|
|
Deposits |
1,726 |
1,732 |
1,731 |
1,741 |
1,725 |
Retail repurchase agreements |
7 |
5 |
4 |
5 |
5 |
Federal Home Loan Bank advances |
507 |
488 |
469 |
516 |
521 |
Other borrowed funds |
280 |
278 |
290 |
288 |
296 |
Total interest expense |
2,520 |
2,503 |
2,494 |
2,550 |
2,547 |
Net interest income before provision for loan
losses |
17,310 |
16,827 |
16,774 |
16,721 |
15,848 |
Recovery of provision for loan losses |
(64) |
(788) |
(1,137) |
(1,323) |
(1,679) |
Net interest income after
provision for loan losses |
17,374 |
17,615 |
17,911 |
18,044 |
17,527 |
Noninterest Income |
|
|
|
|
|
Service charges on deposit accounts |
1,738 |
1,433 |
1,434 |
1,585 |
1,583 |
Mortgage loan income |
381 |
314 |
465 |
241 |
205 |
Cardholder and merchant services income |
1,253 |
1,218 |
1,125 |
1,298 |
1,183 |
Trust and investment services |
376 |
403 |
322 |
394 |
344 |
Bank owned life insurance |
381 |
268 |
250 |
350 |
273 |
Other service charges, commissions and
fees |
477 |
421 |
383 |
366 |
290 |
Securities gains, net |
-- |
-- |
-- |
220 |
34 |
Other income |
394 |
96 |
55 |
89 |
73 |
Total noninterest income |
5,000 |
4,153 |
4,034 |
4,543 |
3,985 |
Noninterest Expense |
|
|
|
|
|
Personnel expense |
9,984 |
10,462 |
10,594 |
10,717 |
12,616 |
Net occupancy expense |
1,591 |
1,211 |
1,469 |
1,526 |
1,521 |
Furniture, equipment and data processing
expense |
2,113 |
1,875 |
1,989 |
2,078 |
2,208 |
Professional fees |
572 |
528 |
539 |
671 |
699 |
Stationery, printing and supplies |
144 |
141 |
176 |
162 |
149 |
Advertising and marketing |
114 |
134 |
186 |
274 |
142 |
Other real estate owned expense
(recovery) |
556 |
506 |
360 |
572 |
(29) |
Credit/debit card expense |
558 |
498 |
543 |
568 |
520 |
FDIC insurance |
413 |
456 |
453 |
422 |
412 |
Loan collection expense |
(76) |
313 |
300 |
170 |
198 |
Core deposit intangible amortization |
370 |
352 |
352 |
351 |
352 |
Other expense |
1,088 |
1,351 |
1,047 |
2,935 |
1,227 |
Total noninterest expense |
17,427 |
17,827 |
18,008 |
20,446 |
20,015 |
Income before income taxes |
4,947 |
3,941 |
3,937 |
2,141 |
1,497 |
Income tax expense (benefit) |
3,430 |
1,418 |
1,418 |
(142,475) |
(276) |
Net Income |
$ 1,517 |
$ 2,523 |
$ 2,519 |
$ 144,616 |
$ 1,773 |
|
|
|
|
|
|
Weighted average shares outstanding -
basic |
24,265 |
24,202 |
24,183 |
21,846 |
21,739 |
Weighted average shares outstanding -
diluted |
24,279 |
24,215 |
24,195 |
21,858 |
21,747 |
Net income per share - basic |
$ 0.06 |
$ 0.10 |
$ 0.10 |
$ 6.62 |
$ 0.08 |
Net income per share - diluted |
0.06 |
0.10 |
0.10 |
6.62 |
0.08 |
Core net income per share - diluted 1 |
0.12 |
0.10 |
0.10 |
0.11 |
0.11 |
1 Non-GAAP measure. See Quarterly
Non-GAAP Measures table for reconciliation to the most directly
comparable GAAP measure. |
|
Quarterly Balance
Sheet |
|
|
|
|
|
|
(in thousands) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ 23,725 |
$ 24,892 |
$ 25,715 |
$ 29,202 |
$ 26,411 |
Interest-bearing bank balances |
4,281 |
6,094 |
22,218 |
66,680 |
33,669 |
Investment securities: |
|
|
|
|
|
Available-for-sale |
375,929 |
381,367 |
367,842 |
350,040 |
363,296 |
Held-to-maturity |
152,670 |
156,648 |
140,559 |
142,461 |
144,684 |
Loans held for sale |
4,089 |
2,767 |
7,571 |
2,796 |
2,268 |
Loans held for investment |
1,522,455 |
1,445,853 |
1,395,911 |
1,357,788 |
1,318,117 |
Less: Allowance for loan
losses |
(17,188) |
(17,989) |
(19,008) |
(20,345) |
(21,525) |
Net loans held for
investment |
1,505,267 |
1,427,864 |
1,376,903 |
1,337,443 |
1,296,592 |
Premises and equipment, net |
44,846 |
45,375 |
43,809 |
46,782 |
47,416 |
Other real estate owned |
19,166 |
19,955 |
21,040 |
20,411 |
20,289 |
Core deposit premiums and other
intangibles |
5,433 |
5,393 |
5,500 |
5,681 |
5,986 |
Goodwill |
4,205 |
4,205 |
4,205 |
4,205 |
4,205 |
Bank-owned life insurance |
40,579 |
40,499 |
40,212 |
39,946 |
40,797 |
Deferred tax asset, net |
139,917 |
145,229 |
144,223 |
146,432 |
5,564 |
Other assets |
33,187 |
33,099 |
32,137 |
23,435 |
24,616 |
Total Assets |
$ 2,353,294 |
$ 2,293,387 |
$ 2,231,934 |
$ 2,215,514 |
$ 2,015,793 |
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand
deposits |
$ 359,969 |
$ 352,033 |
$ 337,417 |
$ 323,776 |
$ 317,981 |
Interest-bearing deposits: |
|
|
|
|
|
Demand, savings and money
market deposits |
895,841 |
889,703 |
880,721 |
882,332 |
859,003 |
Time deposits |
641,069 |
613,902 |
589,334 |
588,312 |
581,946 |
Total deposits |
1,896,879 |
1,855,638 |
1,807,472 |
1,794,420 |
1,758,930 |
Retail repurchase agreements |
16,753 |
11,424 |
7,837 |
9,076 |
12,217 |
Federal Home Loan Bank advances |
90,244 |
80,708 |
68,221 |
68,234 |
73,246 |
Junior subordinated debentures |
56,702 |
56,702 |
56,702 |
56,702 |
56,702 |
Long term notes payable |
5,396 |
5,377 |
5,358 |
5,338 |
5,319 |
Other liabilities |
12,680 |
13,752 |
15,392 |
14,828 |
14,889 |
Total Liabilities |
2,078,654 |
2,023,601 |
1,960,982 |
1,948,598 |
1,921,303 |
Shareholders' Equity |
|
|
|
|
|
Preferred Stock, 10,000,000 authorized |
|
|
|
|
|
Series A, $10.00 par value,
51,500 issued and no shares outstanding |
-- |
-- |
-- |
-- |
-- |
Series B, no par value, 250,000
authorized, no shares issued or outstanding |
-- |
-- |
-- |
-- |
-- |
Common stock |
488,306 |
488,005 |
487,781 |
487,603 |
462,357 |
Accumulated deficit |
(206,653) |
(208,170) |
(210,693) |
(213,212) |
(357,828) |
Accumulated other comprehensive loss |
(7,013) |
(10,049) |
(6,136) |
(7,475) |
(10,039) |
Total Shareholders' Equity |
274,640 |
269,786 |
270,952 |
266,916 |
94,490 |
Total Liabilities and
Shareholders' Equity |
$ 2,353,294 |
$ 2,293,387 |
$ 2,231,934 |
$ 2,215,514 |
$ 2,015,793 |
|
Quarterly Supplemental
Data |
|
|
|
|
|
|
(in thousands, except per share data) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
|
|
|
|
|
|
Income Statement Data |
|
|
|
|
|
Net interest income |
$ 17,310 |
$ 16,827 |
$ 16,774 |
$ 16,721 |
$ 15,848 |
Recovery of provision for loan losses |
(64) |
(788) |
(1,137) |
(1,323) |
(1,679) |
Noninterest income |
5,000 |
4,153 |
4,034 |
4,543 |
3,985 |
Noninterest expense |
17,427 |
17,827 |
18,008 |
20,446 |
20,015 |
Income before taxes |
4,947 |
3,941 |
3,937 |
2,141 |
1,497 |
Net income |
1,517 |
2,523 |
2,519 |
144,616 |
1,773 |
|
|
|
|
|
|
Period End Balances |
|
|
|
|
|
Assets |
$ 2,353,294 |
$ 2,293,387 |
$ 2,231,934 |
$ 2,215,514 |
$ 2,015,793 |
Loans held for sale |
4,089 |
2,767 |
7,571 |
2,796 |
2,268 |
Loans held for investment |
1,522,455 |
1,445,853 |
1,395,911 |
1,357,788 |
1,318,117 |
Allowance for loan losses |
(17,188) |
(17,989) |
(19,008) |
(20,345) |
(21,525) |
Goodwill and other intangible assets |
9,638 |
9,598 |
9,705 |
9,886 |
10,191 |
Deposits |
1,896,879 |
1,855,638 |
1,807,472 |
1,794,420 |
1,758,930 |
Borrowings |
169,095 |
154,211 |
138,118 |
139,350 |
147,484 |
Shareholders' equity |
274,640 |
269,786 |
270,952 |
266,916 |
94,490 |
|
|
|
|
|
|
Average Balances |
|
|
|
|
|
Assets |
$ 2,320,627 |
$ 2,246,949 |
$ 2,202,247 |
$ 2,042,109 |
$ 2,004,071 |
Loans held for sale |
3,584 |
3,981 |
2,781 |
1,997 |
1,446 |
Loans held for investment |
1,479,587 |
1,406,827 |
1,376,053 |
1,338,877 |
1,288,272 |
Allowance for loan losses |
(17,688) |
(18,970) |
(20,239) |
(21,552) |
(24,110) |
Goodwill and other intangible assets |
9,518 |
9,458 |
9,697 |
10,002 |
10,325 |
Deposits |
1,850,578 |
1,799,682 |
1,781,533 |
1,785,575 |
1,753,380 |
Borrowings |
184,942 |
161,996 |
138,757 |
144,315 |
144,830 |
Shareholders' equity |
271,757 |
271,229 |
268,799 |
99,445 |
93,051 |
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
Net income per share - basic |
$ 0.06 |
$ 0.10 |
$ 0.10 |
$ 6.62 |
$ 0.08 |
Net income per share - diluted |
0.06 |
0.10 |
0.10 |
6.62 |
0.08 |
Core net income per share - diluted 1 |
0.12 |
0.10 |
0.10 |
0.11 |
0.11 |
Book value (Shareholders' Equity) |
11.31 |
11.14 |
11.20 |
11.04 |
4.35 |
Tangible book value (Tangible Shareholders'
Equity) 1 |
10.91 |
10.75 |
10.80 |
10.63 |
3.88 |
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
Return on average assets |
0.26% |
0.45% |
0.46% |
28.10% |
0.35% |
Core return on average assets 1 |
0.50% |
0.45% |
0.46% |
0.45% |
0.47% |
Return on average equity |
2.21% |
3.73% |
3.80% |
576.95% |
7.56% |
Net interest margin (tax equivalent) |
3.37% |
3.43% |
3.54% |
3.49% |
3.38% |
PCNR noninterest expense to average assets
1 |
2.92% |
3.03% |
3.15% |
3.55% |
3.55% |
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
Allowance for loan losses to loans held for
investment |
1.13% |
1.24% |
1.36% |
1.50% |
1.63% |
Net annualized charge-offs (recoveries) to
average loans held for investment |
0.20% |
0.07% |
0.06% |
(0.04%) |
0.24% |
Nonperforming assets to total assets |
1.6% |
1.7% |
1.9% |
2.1% |
2.4% |
Classified assets to Tier 1 + ALL |
34% |
36% |
39% |
41% |
62% |
|
|
|
|
|
|
Capital and Other
Ratios |
|
|
|
|
|
CommunityOne Bancorp leverage capital |
8.43% |
8.50% |
8.47% |
9.78% |
6.48% |
CommunityOne Bank, N.A. leverage capital |
9.53% |
9.67% |
9.69% |
9.94% |
7.97% |
CommunityOne Bancorp common equity Tier
1 |
11.64% |
11.85% |
11.86% |
N/A |
N/A |
Loans held for investment to deposits |
80% |
78% |
77% |
76% |
75% |
|
|
|
|
|
|
1 Non-GAAP measure. See Quarterly
Non-GAAP Measures table for reconciliation to the most directly
comparable GAAP measure. |
N/A - Not available |
|
Quarterly Non-GAAP
Measures |
|
|
|
|
|
|
(in thousands) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
|
|
|
|
|
|
Book Value (Shareholders'
Equity) |
$ 274,640 |
$ 269,786 |
$ 270,952 |
$ 266,916 |
$ 94,490 |
Less: |
|
|
|
|
|
Goodwill |
(4,205) |
(4,205) |
(4,205) |
(4,205) |
(4,205) |
Core deposit and other
intangibles |
(5,433) |
(5,393) |
(5,500) |
(5,681) |
(5,986) |
|
|
|
|
|
|
Tangible Book Value (Tangible
Shareholders' Equity) (Non-GAAP) |
$ 265,002 |
$ 260,188 |
$ 261,247 |
$ 257,030 |
$ 84,299 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
$ 17,427 |
$ 17,827 |
$ 18,008 |
$ 20,446 |
$ 20,015 |
|
|
|
|
|
|
Less nonrecurring: |
|
|
|
|
|
Branch closure and
restructuring expenses |
-- |
-- |
-- |
1,566 |
-- |
CEO severance expense |
-- |
-- |
-- |
-- |
2,060 |
Core Noninterest Expense (Non-GAAP)
4 |
$ 17,427 |
$ 17,827 |
$ 18,008 |
$ 18,880 |
$ 17,955 |
Less credit related items: |
|
|
|
|
|
Other real estate owned
expense |
556 |
506 |
360 |
572 |
(29) |
Loan collection expense |
(76) |
313 |
300 |
170 |
198 |
|
|
|
|
|
|
PCNR Noninterest Expense (Non-GAAP)
3 |
$ 16,947 |
$ 17,008 |
$ 17,348 |
$ 18,138 |
$ 17,786 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income |
$ 5,000 |
$ 4,153 |
$ 4,034 |
$ 4,543 |
$ 3,985 |
|
|
|
|
|
|
Less nonrecurring: |
|
|
|
|
|
Bargain purchase gain |
316 |
-- |
-- |
-- |
-- |
Securities gains, net |
-- |
-- |
-- |
220 |
34 |
|
|
|
|
|
|
Core Noninterest Income (Non-GAAP)
4 |
$ 4,684 |
$ 4,153 |
$ 4,034 |
$ 4,323 |
$ 3,951 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Before Tax |
$ 4,947 |
$ 3,941 |
$ 3,937 |
$ 2,141 |
$ 1,497 |
Less nonrecurring: |
|
|
|
|
|
Securities gains, net |
-- |
-- |
-- |
220 |
34 |
Branch closure/restructuring
expense (recovery) |
-- |
-- |
-- |
(1,566) |
-- |
CEO severance expense |
-- |
-- |
-- |
-- |
(2,060) |
Bargain purchase gain |
316 |
-- |
-- |
-- |
-- |
Total nonrecurring items |
316 |
-- |
-- |
(1,346) |
(2,026) |
Core Net Income Before Tax (Non-GAAP)
4 |
$ 4,631 |
$ 3,941 |
$ 3,937 |
$ 3,487 |
$ 3,523 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
3,430 |
1,418 |
1,418 |
(142,475) |
(276) |
Less nonrecurring tax items and
adjustments: |
|
|
|
|
|
Tax effect of nonrecurring
items 1 |
114 |
-- |
-- |
(444) |
(669) |
DTA valuation allowance
release |
(738) |
-- |
-- |
(142,475) |
(276) |
DTA revaluation - state tax
rate reduction |
2,345 |
-- |
-- |
-- |
-- |
Income tax at effective rate
2 |
-- |
-- |
-- |
(707) |
(494) |
Core Income Tax Expense (Non-GAAP)
4 |
$ 1,709 |
$ 1,418 |
$ 1,418 |
$ 1,151 |
$ 1,163 |
|
|
|
|
|
|
Core Net Income (Non-GAAP)
4 |
$ 2,922 |
$ 2,523 |
$ 2,519 |
$ 2,336 |
$ 2,360 |
|
|
|
|
|
|
1 Tax effected at an income
tax rate of 33% in 2014 and 36% in 2015. |
2 Projected income tax
expense at 33%. In 2014 all tax items resulted in changes to the
DTA valuation allowance. |
3 Pre-credit and
nonrecurring ("PCNR") expense excludes credit related and
nonrecurring expenses. |
4 Core measures exclude
nonrecurring items. |
CONTACT: For more information:
David L. Nielsen, CFO, 980.819.6220
investorrelations@community1.com
Kim Graham, 980.819.6278
kim.graham@community1.com
Communityone Bancorp (MM) (NASDAQ:COB)
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