TROY, Mich., Jan. 30, 2015 /PRNewswire/ -- Talmer
Bancorp, Inc. (NASDAQ: TLMR) ("Talmer") today reported fourth
quarter 2014 net income of $12.5
million, compared to $19.5
million for the third quarter of 2014 and $12.6 million for the fourth quarter of
2013. Earnings per diluted common share were $0.16 for the fourth quarter of 2014, compared to
$0.26 for the third quarter of 2014
and $0.18 for the fourth quarter of
2013. In addition, the Board of Directors of Talmer declared a cash
dividend on its Class A common stock of $0.01 per share on January
29, 2015. The dividend will be paid on February 20, 2015, to our Class A common
shareholders of record as of February 9,
2015.
Talmer Bancorp President and CEO David
Provost commented, "We are pleased at our consistent
progress in substantially improving our core operating efficiency
and sustaining strong organic loan growth. Looking forward,
our lending pipelines are strong, and we plan to make further
incremental improvements in our operating efficiency in early 2015
given the anticipated first quarter completion of the First of
Huron Corporation acquisition and the operational integration of
Talmer West Bank. During the
fourth quarter we generated an annualized reported return on
average assets of 85 basis points despite the earnings headwinds
from a pre-tax $3.7 million charge
related to a reduction in the fair value of our loan servicing
rights due to lower market interest rates. Our team remains
optimistic about the substantial organic growth opportunities in
our existing markets and continues to be well-prepared to pursue
additional acquisitions."
Quarterly Results Summary
(Dollars in
thousands, except per share data)
|
4th Qtr
2014
|
|
3rd Qtr
2014
|
|
4th Qtr
2013
|
|
Earnings
Summary
|
|
|
|
|
|
|
Net interest
income
|
$
51,463
|
|
$
52,217
|
|
$ 39,284
|
|
Total provision for
loan losses
|
2,994
|
|
1,509
|
|
3,250
|
|
Noninterest
income
|
15,834
|
|
29,974
|
|
23,557
|
|
Noninterest
expense
|
48,098
|
|
51,263
|
|
53,009
|
|
Income before income
taxes
|
16,205
|
|
29,419
|
|
6,582
|
|
Income tax provision
(benefit)
|
3,703
|
|
9,904
|
|
(5,971)
|
|
Net income
|
12,502
|
|
19,515
|
|
12,553
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
0.16
|
|
$
0.26
|
|
$
0.18
|
|
Tangible book value
per share (1)
|
10.61
|
|
10.40
|
|
9.12
|
|
Average diluted
common shares (in thousands)
|
75,759
|
|
75,752
|
|
70,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance and
Capital Ratios
|
|
|
|
|
|
|
Return on average
assets
|
0.85
|
%
|
1.36
|
%
|
1.08
|
%
|
Return on average
equity
|
6.63
|
|
10.56
|
|
8.24
|
|
Net interest margin
(fully taxable equivalent) (2)
|
3.89
|
|
4.05
|
|
3.72
|
|
Core efficiency ratio
(1)
|
67.09
|
|
70.81
|
|
88.22
|
|
Tangible average
equity to tangible average assets (1)
|
12.67
|
|
12.64
|
|
12.91
|
|
Tier 1 leverage ratio
(3)
|
11.56
|
|
11.45
|
|
12.19
|
|
Tier 1 risk-based
capital (3)
|
15.20
|
|
15.56
|
|
18.29
|
|
Total risk-based
capital (3)
|
16.44
|
|
16.76
|
|
19.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See section
entitled "Reconciliation of Non-GAAP Financial
Measures."
|
|
|
|
(2) Presented on a
tax equivalent basis using a 35% tax rate for all periods
presented.
|
|
|
|
(3) Fourth quarter
2014 is estimated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2014 Compared to Third Quarter
2014
- Net income was $12.5 million, or
$0.16 per diluted average common
share, in the fourth quarter of 2014, compared to $19.5 million, or $0.26 per diluted average common share, for the
third quarter of 2014. The decline in net income in the
fourth quarter of 2014 was primarily due to the third quarter of
2014 benefit of $14.4 million in gain
on sales of branches, partially offset by a $3.2 million decrease in total noninterest
expense.
- Net total loans increased during the fourth quarter of 2014 by
$214.5 million. During the
fourth quarter of 2014, Talmer Bank
and Trust's net total loans grew by $223.9
million, as a result of $276.8
million of net uncovered loan growth (loans not covered by
loss share agreements with the FDIC) and $52.9 million of net covered loan run-off (loans
covered by loss share agreements with the FDIC). Talmer West Bank experienced net loan run-off of
$9.4 million in the fourth quarter of
2014.
- Total deposits increased $63.3
million, to $4.5 billion as of
December 31, 2014, compared to
September 30, 2014.
Total deposit growth included other brokered funds of
$169.0 million to fund continued loan
growth, partially offset by declines in time deposits of
$68.8 million, noninterest-bearing
demand deposits of $20.8 million,
interest-bearing demand deposits of $12.6
million and money market and savings deposits of
$3.5 million.
- Net interest income decreased slightly to $51.5 million in the fourth quarter of 2014,
compared to $52.2 million in the
third quarter of 2014. Our net interest margin declined 16
basis points to 3.89% in the fourth quarter of 2014, compared to
4.05% in the third quarter of 2014, due in large part to the
increased negative accretion of the FDIC indemnification
asset.
- Noninterest income decreased $14.1
million to $15.8 million in
the fourth quarter of 2014, compared to the third quarter of
2014. The decrease is primarily the result of $14.4 million in gain on sales of branches
recognized from the sales of our Wisconsin branches and our single branch
located in New Mexico recognized
in the third quarter of 2014. Also impacting the decline was
a fourth quarter decline of mortgage banking and other loan fees of
$2.9 million, driven by a detriment
to earnings of $3.7 million due to
the change in the fair value of loan servicing rights, partially
offset by a fourth quarter decrease of $2.2
million in the amounts due to the FDIC resulting from lower
recoveries recognized included within "FDIC loss sharing
income." In the third quarter of 2014, the change in the fair
value of loan servicing rights was a detriment of $176 thousand. The changes in the fair value of
loan servicing rights were due mainly to movements in market
interest rate during those periods.
- Noninterest expense decreased $3.2
million, or 6.2%, to $48.1
million in the fourth quarter of 2014, compared to the third
quarter of 2014. The decline in noninterest expense is
significantly due to a decrease in salary and employee benefits of
$4.2 million driven by lower salary
and benefit related costs as a result of the sales of our
Wisconsin and New Mexico branches during the third
quarter.
Income Statement
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2014 was
$51.5 million, compared to
$52.2 million in the prior
quarter. Our net interest margin was 3.89% in the fourth
quarter of 2014, a decrease of 16 basis points from 4.05% in the
third quarter of 2014. The decline in our net interest margin
in the fourth quarter was due to a combination of several
factors. The largest factors affecting the change in our net
interest margin were: (1) an increase in negative accretion of the
FDIC indemnification asset as we continue to experience increases
in cash flow expectations on covered loans as a result of our
quarterly re-estimations, and (2) a decline in the yield on our
uncovered purchased credit impaired loan portfolio due to the
run-off of certain higher yielding uncovered purchased credit
impaired loans.
Our net interest margin benefits from discount accretion on our
purchased credit impaired loan portfolio, a component of the
accretable yield. The accretable yield for purchased credit
impaired loans includes both the expected coupon of the loan and
the discount accretion, and is recognized as interest income over
the expected remaining life of the loans. For the fourth and
third quarters of 2014, the yield on uncovered loans was 4.71% and
4.97%, respectively, while the yield generated using only the
expected coupon would have been 4.25% and 4.51%,
respectively. For the fourth and third quarters of 2014, the
yield on covered loans was 13.03% and 12.36%, respectively, while
the yield generated using only the expected coupon would have been
6.25% and 5.93%, respectively. The difference between the
actual yield earned on total loans and the yield generated based on
the contractual coupon (not including any interest income for loans
in nonaccrual status) represents excess accretable yield. Our
net interest margin is also adversely impacted by the negative
yield on the FDIC indemnification asset. Because our
quarterly cash flow re-estimations have continuously resulted in
improvements in the overall expected cash flows on covered loans,
our expected payment from the FDIC under our loss share agreements
has declined, resulting in a negative yield on the FDIC
indemnification asset. This negative yield on the FDIC
indemnification asset partially offsets the benefits provided by
the excess accretable yield. This negative yield was
$7.5 million, or 38.41%, for the
fourth quarter of 2014 compared to $6.7
million, or 26.61%, for the third quarter of 2014. The
combination of the excess accretable yield on both covered and
uncovered loans and negative yield on the FDIC indemnification
asset benefitted net interest margin by 24 basis points and 35
basis points in the fourth and third quarters of 2014,
respectively. Therefore, excluding the benefit of excess
accretable yield and negative yield on the FDIC indemnification
asset, our net interest margin in the fourth quarter of 2014 was
3.65% compared to 3.69% in third quarter of 2014.
Noninterest Income
Noninterest income decreased $14.1
million to $15.8 million in
the fourth quarter of 2014, compared to the third quarter of
2014. The decrease is primarily the result of $14.4 million in gain on sales of branches
recognized from the sales of our Wisconsin branches and our single branch
located in New Mexico recognized
in the third quarter of 2014. Also impacting the decline was
a fourth quarter decline of mortgage banking and other loan fees of
$2.9 million, driven by a detriment
to earnings of $3.7 million due to
the change in the fair value of loan servicing rights, partially
offset by a fourth quarter decrease of $2.2
million in the amounts due to the FDIC resulting from lower
recoveries recognized included within "FDIC loss sharing
income." In the third quarter of 2014, the change in the fair
value of loan servicing rights was a detriment of $176 thousand. The changes in the fair value of
loan servicing rights were due mainly to movements in market
interest rate during those periods. Loan servicing rights
totaled $70.6 million as of
December 31, 2014, compared to
$74.4 million as of September 30, 2014. In January of
2015, we completed a sale of approximately $13.2 million of mortgage loan servicing rights,
at a price that approximates the current fair value, which were
substantially all of the servicing rights we had owned for
mortgages located outside of our primarily target markets. At
this time, we do not have any intention to sell any additional
mortgage servicing rights.
Noninterest Expense
Noninterest expense in the fourth quarter of 2014 declined
$3.2 million to $48.1 million, compared to $51.3 million in the third quarter of 2014.
The decline in noninterest expense primarily reflects decreases in
salary and employee benefits of $4.2
million, occupancy and equipment expense of $1.1 million and data processing fees of
$821 thousand, primarily due to the
full-quarter impact of the branch sales completed in the third
quarter of 2014 and our continued efforts to improve operating
efficiencies as we move to fully integrate and rationalize the
operations of our acquired banks.
Our core efficiency ratio for the fourth quarter of 2014 was
67.09%, exceeding our goal of achieving a 70% or better core
efficiency ratio by the fourth quarter of 2014, compared to 70.81%
for the third quarter. The efficiency ratio is a measure of
noninterest expense as a percent of net interest income and
noninterest income. The core efficiency ratio begins with the
efficiency ratio and then excludes certain items deemed by
management to not be related to regular operations. The
fourth quarter of 2014 core efficiency ratio excludes the fair
value adjustment to our loan servicing rights of $3.7 million, transaction and integration related
costs of $329 thousand and the FDIC
loss sharing income which was a detriment of $244 thousand. The third quarter of 2014
core efficiency ratio excludes the gain on sales of branches of
$14.4 million, FDIC loss sharing
income which was a detriment of $2.4
million, the fair value adjustment to our loan servicing
rights of $176 thousand, and
transaction and integration related costs of $1.4 million.
Credit Quality
The total net provision for loan losses in the fourth quarter of
2014 increased $1.5 million to
$3.0 million, compared to
$1.5 million in the third quarter of
2014. The increase in the net provision for loan losses was
primarily due to an increase in loan loss provisions resulting from
our quarterly cash flow re-estimations on purchased credit impaired
loans, and to a lesser extent, additional specific allowances based
on individual evaluation of certain loans.
The provision for loan losses on uncovered loans in the fourth
quarter of 2014 decreased $2.1
million to $5.7 million,
compared to $7.8 million in the third
quarter of 2014. At December 31,
2014, the allowance for loan losses on uncovered loans was
$33.8 million, or 0.87% of total
uncovered loans, compared to $29.9
million, or 0.82% of total uncovered loans, at September 30, 2014. The increase in
allowance for loan losses on uncovered loans for the quarter was
primarily due to the impact of organic loan growth and impairment
resulting from our quarterly re-estimation of cash flows for our
uncovered purchased credit impaired loans. At December 31, 2014, uncovered nonperforming loans
were $35.1 million, compared to
$43.3 million at September 30, 2014. During the fourth
quarter of 2014, we repossessed the underlying assets of a set of
interrelated loans previously included within uncovered
nonperforming loans, which had a net carrying value of
approximately $10.5 million at
September 30, 2014. At
December 31, 2014, the related assets
are included in "Other real estate owned and repossessed assets" at
a net carrying value of approximately $9.7
million, net of charge offs and payments applied.
These assets resulted in approximately $900
thousand of credit-related charges during the fourth
quarter.
The net benefit for loan losses on covered loans in the fourth
quarter of 2014 decreased $3.6
million to a benefit of $2.7
million, compared to a benefit of $6.3 million in the third quarter of 2014.
At December 31, 2014, the allowance
for loan losses on covered loans was $21.4
million, or 6.16% of total covered loans, compared to
$25.8 million, or 6.38% of total
covered loans at September 30,
2014. The decrease in allowance for loan losses on covered
loans primarily reflects the relief of allowance resulting from
unanticipated payments received on loans.
During the fourth quarter of 2014, we completed re-estimations
of cash flow expectations for purchased credit impaired loans
acquired in each of our acquisitions. For the re-estimations,
loans with changes in cash flow expectations resulted in net
additional loan loss provisions of $3.0
million ($2.6 million
uncovered and $456 thousand
covered). The re-estimations also resulted in a $24.5 million improvement in the gross cash flow
expectations for purchased credit impaired loans, which will be
recognized prospectively as an increase in the accretable
yield. The improvement in cash flows on covered loans will be
partially offset by a continued reduction in the FDIC
indemnification asset, which will impact future earnings through
negative accretion. For loans with cash flow expectation
improvements, any previously recorded impairment is reversed with
any additional increase in cash flows recognized prospectively as
an increase in the accretable yield.
All of our acquired loan portfolios are continuing to perform
significantly better than initially anticipated. We believe
improvements in performance are primarily due to improvements in
the economy and the efforts made by our Special Assets team that
manages our acquired loan portfolios. Similar to the fourth
quarter 2014 re-estimations, the prior re-estimations of cash flows
have indicated better overall expected performance than originally
anticipated at acquisition.
Balance Sheet and Capital Management
Total assets increased $126.6
million to $5.9 billion at
December 31, 2014 compared to
September 30, 2014. The primary
drivers of the increase in assets in the quarter ended December 31, 2014 were an increase in net total
loans of $214.5 million, partially
offset by decreases of $44.9 million
in cash and cash equivalents, $29.1
million in loans held for sale and $15.4 million in the FDIC indemnification
asset. The decrease in the FDIC indemnification asset
primarily reflects the impact of $7.5
million of indemnification asset negative accretion,
$5.6 million of indemnification
write-off due to settlements and the results of our quarterly
re-estimations of cash flow expectations for covered purchased
credit impaired loans and $1.7
million of claims filed for losses on covered
loans.
Net total loans at December 31,
2014 increased $214.5 million
to $4.2 billion, compared to
$4.0 billion at September 30, 2014. During the fourth
quarter of 2014, Talmer Bank and
Trust's net total loans grew by $223.9
million resulting from $276.8
million of net uncovered loan growth, partially offset by
$52.9 million of net covered loan
run-off. Talmer West Bank
experienced net loan run-off of $9.4
million in the fourth quarter of 2014. We continue to
be focused on sourcing quality loan growth to overcome the run-off
of higher-yielding acquired loans. Our covered loan portfolio
has now declined to $346.5 million,
or 8.2%, of total loans, which are covered by loss sharing
agreements entered into with the FDIC. Acquired loans are
reported on the balance sheet at the contractual balance, net of
remaining discount resulting from acquisition accounting and
charge-offs taken since acquisition.
Total liabilities were $5.1
billion at December 31, 2014
compared to $5.0 billion at
September 30, 2014. The
$111.7 million increase in
liabilities in the quarter ended December
31, 2014 was primarily due to increases in long-term debt of
$69.0 million and in total deposits
of $63.3 million, partially offset by
a decrease in short-term borrowings of $14.8
million. The increase in long-term debt primarily
reflects additional Federal Home Loan Bank ("FHLB") advances
entered into during the period. Total deposit growth included
other brokered funds of $169.0
million, partially offset by declines in time deposits of
$68.8 million, noninterest-bearing
demand deposits of $20.8 million,
interest-bearing demand deposits of $12.6
million and money market and savings deposits of
$3.5 million. The
decrease in short-term borrowings primarily reflects decreases in
outstanding securities sold under agreements to repurchase of
$51.9 million, partially offset by
additional short-term FHLB borrowings of $40.0 million.
Total shareholders' equity increased $15.0 million, or 2.0%, to $761.6 million at December
31, 2014, compared to September
30, 2014. The increase in shareholders' equity
primarily reflects our fourth quarter 2014 net income of
$12.5 million.
Our Tier 1 leverage ratio improved to 11.56% at December 31, 2014 compared to 11.45% at
September 30, 2014. We
anticipate that the implementation of new Basel III capital rules
during the first quarter of 2015 will have a modestly positive
impact to our regulatory capital ratios.
Key Performance Goals
Our near-term focus continues to be on driving quality loan and
core deposit growth and realizing significant operating synergies
as we move toward fully integrating our acquired banks. This
includes the consolidation of back office processes, personnel and
facilities and the wind-down of third party expenses associated
with meeting regulatory compliance and system enhancements.
Recent increases in the level of merger activity in our market area
offer the potential for additional opportunities to further
leverage our capital position; however, we strive to remain
disciplined in our evaluation of the risks and challenges in each
and every deal. The effective integration of operations and
culture from previous acquisitions and the ongoing investment in
core growth provide momentum in our pursuit of delivering a
sustainable 1%+ core return on assets.
Conference Call and Webcast
Talmer Bancorp, Inc. will host a live conference webcast to
review fourth quarter 2014 financial results at 10:00 a.m. ET on Monday,
February 2, 2015. The webcast may be accessed through
Talmer's Investor Relations page at www.talmerbank.com where a link
will be provided. Interested parties may also access the conference
call by calling (888) 317-6003 (event ID No. 6379006) or
internationally at (412) 317-6061. A replay of the webcast
will be available for approximately 90 days after the event on
Talmer's Investor Relations page at www.talmerbank.com.
About Talmer Bancorp, Inc.
Headquartered in Troy,
Michigan, Talmer Bancorp, Inc. is the holding company for
Talmer Bank and Trust and
Talmer West Bank. These banks,
operating through branches and lending offices in Michigan, Ohio, Illinois, Indiana, and Nevada, offer a full suite of commercial and
retail banking, mortgage banking, wealth management and trust
services to small and medium-sized businesses and individuals.
This press release contains both financial measures based on
accounting principles generally accepted in the United States (GAAP) and non-GAAP based
financial measures, which are used where management believes it to
be helpful in understanding Talmer Bancorp Inc.'s results of
operations or financial position. Where non-GAAP financial
measures are used, the comparable GAAP financial measure, as well
as reconciliation to the comparable GAAP financial measure, can be
found in this press release. These disclosures should not be viewed
as a substitute for operating results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies.
Forward-looking Statements
Some of the statements in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: "intend,"
"plan," "seek," "believe," "expect," "strategy," "future,"
"likely," "may," "should," "will" and similar references to future
periods. Examples of forward-looking statements, include,
among others, statements related to our future expectations,
including all statements under the heading entitled "Key
Performance Goals," statements about our strong lending pipelines,
further incremental improvements in our operating efficiencies in
2015, the anticipated completion of the First of Huron Corp.
acquisition and operational integration of Talmer West Bank, expectations related to growth
opportunities in our markets, including our ability to pursue
additional acquisitions, our ability to drive strong earning asset
and fee income growth, our anticipated implementation of the new
Basel III capital rules, and our strategic plan.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to risks, uncertainties and other factors,
such as a downturn in the economy, unanticipated losses related to
the integration of, and accounting for, our acquisition
transactions, access to funding sources, greater than expected
noninterest expenses, volatile credit and financial markets both
domestic and foreign, potential deterioration in real estate
values, regulatory changes, excessive loan losses, and, with
respect to the proposed acquisition of First of Huron Corp., the
inability to meet certain closing terms and conditions, as well as
additional risks and uncertainties contained in the "Risk Factors"
and the forward-looking statement disclosure contained in our
Annual Report on Form 10-K for the most recently ended fiscal year,
any of which could cause actual results to differ materially from
future results expressed or implied by those forward-looking
statements. All forward-looking statements speak only as of
the date on which it is made. We undertake no obligation to
update or revise any forward-looking statements, whether written or
oral, that may be made from time to time, whether as a result of
new information, future events or otherwise.
Talmer Bancorp,
Inc.
|
|
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(Dollars in
thousands, except per share data)
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
$
86,185
|
|
$
91,214
|
|
$
97,167
|
Interest-bearing
deposits with other banks
|
96,551
|
|
121,952
|
|
206,160
|
Federal funds sold
and other short-term investments
|
71,000
|
|
85,500
|
|
72,029
|
Total cash and cash
equivalents
|
253,736
|
|
298,666
|
|
375,356
|
Securities
available-for-sale
|
740,819
|
|
734,489
|
|
620,083
|
Federal Home Loan
Bank stock
|
20,212
|
|
17,426
|
|
16,303
|
Loans held for
sale
|
93,453
|
|
122,599
|
|
85,252
|
Loans:
|
|
|
|
|
|
Residential
real estate (includes $18.3 million, $17.9 million and $16.3
million
respectively, measured at fair value)
|
1,426,012
|
|
1,430,939
|
|
1,085,453
|
Commercial
real estate
|
1,310,938
|
|
1,213,361
|
|
755,839
|
Commercial and
industrial
|
869,477
|
|
790,867
|
|
446,644
|
Real estate
construction (includes $1.4 million measured at fair
value at December 31, 2013)
|
131,686
|
|
102,920
|
|
176,226
|
Consumer
|
164,524
|
|
93,246
|
|
9,754
|
Total loans,
excluding covered loans
|
3,902,637
|
|
3,631,333
|
|
2,473,916
|
Less: Allowance for loan losses - uncovered
|
(33,819)
|
|
(29,892)
|
|
(17,746)
|
Net loans - excluding covered loans
|
3,868,818
|
|
3,601,441
|
|
2,456,170
|
Covered
loans
|
346,490
|
|
403,792
|
|
530,068
|
Less: Allowance for loan losses - covered
|
(21,353)
|
|
(25,768)
|
|
(40,381)
|
Net loans - covered
|
325,137
|
|
378,024
|
|
489,687
|
Net
total loans
|
4,193,955
|
|
3,979,465
|
|
2,945,857
|
Premises and
equipment
|
46,905
|
|
49,462
|
|
51,001
|
FDIC indemnification
asset
|
67,026
|
|
82,441
|
|
131,861
|
Other real estate
owned and repossessed assets
|
48,743
|
|
45,033
|
|
29,982
|
Loan servicing
rights
|
70,598
|
|
74,380
|
|
78,603
|
Core deposit
intangible
|
13,035
|
|
13,696
|
|
13,205
|
FDIC
receivable
|
6,062
|
|
12,873
|
|
7,783
|
Company-owned life
insurance
|
97,782
|
|
96,605
|
|
39,500
|
Income tax
benefit
|
177,472
|
|
181,318
|
|
126,200
|
Other
assets
|
40,982
|
|
35,717
|
|
26,375
|
Total assets
|
$
5,870,780
|
|
$
5,744,170
|
|
$
4,547,361
|
Liabilities
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
$
887,567
|
|
$
908,343
|
|
$
779,407
|
Interest-bearing demand deposits
|
660,697
|
|
673,336
|
|
598,281
|
Money market
and savings deposits
|
1,170,236
|
|
1,173,697
|
|
1,215,864
|
Time
deposits
|
1,188,178
|
|
1,256,981
|
|
927,313
|
Other brokered
funds
|
642,185
|
|
473,240
|
|
80,000
|
Total
deposits
|
4,548,863
|
|
4,485,597
|
|
3,600,865
|
FDIC clawback
liability
|
26,905
|
|
25,723
|
|
24,887
|
FDIC warrants
payable
|
4,633
|
|
4,563
|
|
4,118
|
Short-term
borrowings
|
135,743
|
|
150,573
|
|
71,876
|
Long-term
debt
|
353,972
|
|
285,009
|
|
199,037
|
Other
liabilities
|
39,057
|
|
46,053
|
|
29,563
|
Total
liabilities
|
5,109,173
|
|
4,997,518
|
|
3,930,346
|
Shareholders'
equity
|
|
|
|
|
|
Preferred stock -
$1.00 par value
|
|
|
|
|
|
Authorized -
20,000,000 shares at 12/31/2014, 9/30/2014 and
12/31/2013
|
|
|
|
|
|
Issued and
outstanding - 0 shares at 12/31/2014, 9/30/2014 and
12/31/2013
|
-
|
|
-
|
|
-
|
Common
stock:
|
|
|
|
|
|
Class A
Voting Common Stock - $1.00 par value
|
|
|
|
|
|
Authorized
-198,000,000 shares at 12/31/2014, 9/30/2014 and
12/31/2013
|
|
|
|
|
|
Issued and
outstanding -70,532,122 shares at 12/31/2014,
70,503,920
|
|
|
|
|
|
shares at
9/30/2014 and 66,234,397 shares at 12/31/2013
|
70,532
|
|
70,504
|
|
66,234
|
Class B
Non-Voting Common Stock - $1.00 par value
|
|
|
|
|
|
Authorized -
2,000,000 shares at 12/31/2014, 9/30/2014 and 12/31/2013
|
|
|
|
|
|
Issued and
outstanding - 0 shares at 12/31/2014, 9/30/2014 and
12/31/2013
|
-
|
|
-
|
|
-
|
Additional
paid-in-capital
|
405,436
|
|
404,068
|
|
366,428
|
Retained
earnings
|
281,789
|
|
269,993
|
|
192,349
|
Accumulated
other comprehensive income (loss), net of tax
|
3,850
|
|
2,087
|
|
(7,996)
|
Total shareholders'
equity
|
761,607
|
|
746,652
|
|
617,015
|
Total liabilities
and shareholders' equity
|
$
5,870,780
|
|
$
5,744,170
|
|
$
4,547,361
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(Dollars in
thousands, except per share data)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
Interest and
fees on loans
|
$
58,271
|
|
$ 45,354
|
|
$
226,674
|
|
$
194,857
|
Interest on
investments
|
|
|
|
|
|
|
|
Taxable
|
2,263
|
|
1,880
|
|
8,509
|
|
6,097
|
Tax-exempt
|
1,610
|
|
1,098
|
|
6,232
|
|
4,230
|
Total interest on securities
|
3,873
|
|
2,978
|
|
14,741
|
|
10,327
|
Interest on
interest-earning cash balances
|
94
|
|
188
|
|
640
|
|
776
|
Interest on
federal funds and other short-term investments
|
126
|
|
204
|
|
527
|
|
930
|
Dividends on
FHLB stock
|
177
|
|
160
|
|
867
|
|
872
|
FDIC
indemnification asset
|
(7,539)
|
|
(6,952)
|
|
(26,426)
|
|
(28,040)
|
Total interest
income
|
55,002
|
|
41,932
|
|
217,023
|
|
179,722
|
Interest
Expense
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
194
|
|
173
|
|
824
|
|
673
|
Money market
and savings deposits
|
457
|
|
430
|
|
1,930
|
|
1,889
|
Time
deposits
|
1,546
|
|
1,250
|
|
6,080
|
|
5,864
|
Other brokered
funds
|
527
|
|
32
|
|
879
|
|
142
|
Interest on
short-term borrowings
|
90
|
|
24
|
|
420
|
|
105
|
Interest on
long-term debt
|
725
|
|
739
|
|
2,627
|
|
3,052
|
Total interest
expense
|
3,539
|
|
2,648
|
|
12,760
|
|
11,725
|
Net interest
income
|
51,463
|
|
39,284
|
|
204,263
|
|
167,997
|
Provision for
loan losses - uncovered
|
5,655
|
|
6,569
|
|
23,082
|
|
15,520
|
Benefit for
loan losses - covered
|
(2,661)
|
|
(3,319)
|
|
(18,755)
|
|
(10,422)
|
Net interest
income after provision for loan losses
|
48,469
|
|
36,034
|
|
199,936
|
|
162,899
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Deposit fee
income
|
2,692
|
|
3,179
|
|
12,225
|
|
15,886
|
Mortgage
banking and other loan fees
|
(865)
|
|
7,666
|
|
1,163
|
|
30,853
|
Net gain on
sales of loans
|
4,939
|
|
3,423
|
|
17,747
|
|
41,212
|
Net gain on
sales of branches
|
-
|
|
-
|
|
14,410
|
|
-
|
Bargain
purchase gain
|
-
|
|
-
|
|
41,977
|
|
71,702
|
FDIC loss
sharing income
|
(244)
|
|
(3,167)
|
|
(6,211)
|
|
(10,226)
|
Accelerated
discount on acquired loans
|
3,742
|
|
6,596
|
|
18,197
|
|
17,154
|
Net gain
(loss) on sales of securities
|
-
|
|
292
|
|
(2,066)
|
|
392
|
Other
income
|
5,570
|
|
5,568
|
|
20,057
|
|
14,165
|
Total
noninterest income
|
15,834
|
|
23,557
|
|
117,499
|
|
181,138
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
Salary and
employee benefits
|
25,632
|
|
29,837
|
|
121,744
|
|
146,609
|
Occupancy and
equipment expense
|
6,911
|
|
6,346
|
|
31,806
|
|
26,755
|
Data
processing fees
|
789
|
|
1,974
|
|
6,399
|
|
7,591
|
Professional
service fees
|
3,323
|
|
3,974
|
|
12,952
|
|
16,640
|
FDIC loss
sharing expense
|
406
|
|
483
|
|
2,158
|
|
2,007
|
Bank
acquisition and due diligence fees
|
329
|
|
819
|
|
3,765
|
|
8,693
|
Marketing
expense
|
1,226
|
|
659
|
|
4,923
|
|
3,484
|
Other employee
expense
|
658
|
|
642
|
|
2,674
|
|
3,096
|
Insurance
expense
|
1,615
|
|
1,851
|
|
5,697
|
|
9,974
|
Other
expense
|
7,209
|
|
6,424
|
|
26,762
|
|
25,965
|
Total noninterest
expense
|
48,098
|
|
53,009
|
|
218,880
|
|
250,814
|
Income before
income taxes
|
16,205
|
|
6,582
|
|
98,555
|
|
93,223
|
Income tax
provision (benefit)
|
3,703
|
|
(5,971)
|
|
7,705
|
|
(5,335)
|
Net
income
|
$
12,502
|
|
$ 12,553
|
|
$
90,850
|
|
$
98,558
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.18
|
|
$
0.19
|
|
$
1.30
|
|
$
1.49
|
Diluted
|
$
0.16
|
|
$
0.18
|
|
$
1.21
|
|
$
1.41
|
Average common
shares outstanding - basic
|
70,136
|
|
66,231
|
|
69,605
|
|
66,230
|
Average common
shares outstanding - diluted
|
75,759
|
|
70,555
|
|
75,150
|
|
69,664
|
|
|
|
|
|
|
|
|
Total
comprehensive income
|
$
14,265
|
|
$ 9,922
|
|
$ 102,696
|
|
$
86,644
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
4th Quarter
2014
|
|
3rd Quarter
2014
|
|
2nd Quarter
2014
|
|
1st Quarter
2014
|
|
4th Quarter
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans
|
$ 58,271
|
|
$ 58,128
|
|
$ 56,774
|
|
$ 53,501
|
|
$ 45,354
|
|
Interest on
investments
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
2,263
|
|
2,241
|
|
2,139
|
|
1,866
|
|
1,880
|
|
Tax-exempt
|
1,610
|
|
1,444
|
|
1,213
|
|
1,965
|
|
1,098
|
|
Total interest on securities
|
3,873
|
|
3,685
|
|
3,352
|
|
3,831
|
|
2,978
|
|
Interest on
interest-earning cash balances
|
94
|
|
159
|
|
171
|
|
216
|
|
188
|
|
Interest on
federal funds and other short-term investments
|
126
|
|
130
|
|
131
|
|
140
|
|
204
|
|
Dividends on
FHLB stock
|
177
|
|
177
|
|
291
|
|
222
|
|
160
|
|
FDIC
indemnification asset
|
(7,539)
|
|
(6,663)
|
|
(5,506)
|
|
(6,718)
|
|
(6,952)
|
|
Total interest
income
|
55,002
|
|
55,616
|
|
55,213
|
|
51,192
|
|
41,932
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
194
|
|
190
|
|
216
|
|
224
|
|
173
|
|
Money market
and savings deposits
|
457
|
|
487
|
|
492
|
|
494
|
|
430
|
|
Time
deposits
|
1,546
|
|
1,611
|
|
1,432
|
|
1,491
|
|
1,250
|
|
Other brokered
funds
|
527
|
|
288
|
|
35
|
|
29
|
|
32
|
|
Interest on
short-term borrowings
|
90
|
|
122
|
|
33
|
|
175
|
|
24
|
|
Interest on
long-term debt
|
725
|
|
701
|
|
627
|
|
574
|
|
739
|
|
Total interest
expense
|
3,539
|
|
3,399
|
|
2,835
|
|
2,987
|
|
2,648
|
|
Net interest
income
|
51,463
|
|
52,217
|
|
52,378
|
|
48,205
|
|
39,284
|
|
Provision for
loan losses - uncovered
|
5,655
|
|
7,784
|
|
3,219
|
|
6,424
|
|
6,569
|
|
Benefit for
loan losses - covered
|
(2,661)
|
|
(6,275)
|
|
(7,321)
|
|
(2,498)
|
|
(3,319)
|
|
Net interest
income after provision for loan losses
|
48,469
|
|
50,708
|
|
56,480
|
|
44,279
|
|
36,034
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Deposit fee
income
|
2,692
|
|
3,047
|
|
3,188
|
|
3,298
|
|
3,179
|
|
Mortgage
banking and other loan fees
|
(865)
|
|
2,065
|
|
(1,122)
|
|
1,085
|
|
7,666
|
|
Net gain on
sales of loans
|
4,939
|
|
4,083
|
|
5,681
|
|
3,044
|
|
3,423
|
|
Net gain on
sales of branches
|
-
|
|
14,410
|
|
-
|
|
-
|
|
-
|
|
Bargain
purchase gain
|
-
|
|
-
|
|
-
|
|
41,977
|
|
-
|
|
FDIC loss
sharing income
|
(244)
|
|
(2,420)
|
|
(3,434)
|
|
(113)
|
|
(3,167)
|
|
Accelerated
discount on acquired loans
|
3,742
|
|
3,663
|
|
4,326
|
|
6,466
|
|
6,596
|
|
Net gain
(loss) on sales of securities
|
-
|
|
244
|
|
-
|
|
(2,310)
|
|
292
|
|
Other
income
|
5,570
|
|
4,882
|
|
5,312
|
|
4,293
|
|
5,568
|
|
Total
noninterest income
|
15,834
|
|
29,974
|
|
13,951
|
|
57,740
|
|
23,557
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Salary and
employee benefits
|
25,632
|
|
29,795
|
|
30,466
|
|
35,851
|
|
29,837
|
|
Occupancy and
equipment expense
|
6,911
|
|
7,981
|
|
7,871
|
|
9,043
|
|
6,346
|
|
Data
processing fees
|
789
|
|
1,610
|
|
2,260
|
|
1,740
|
|
1,974
|
|
Professional
service fees
|
3,323
|
|
2,964
|
|
2,628
|
|
4,037
|
|
3,974
|
|
FDIC loss
sharing expense
|
406
|
|
245
|
|
983
|
|
524
|
|
483
|
|
Bank
acquisition and due diligence fees
|
329
|
|
239
|
|
268
|
|
2,929
|
|
819
|
|
Marketing
expense
|
1,226
|
|
1,001
|
|
1,605
|
|
1,091
|
|
659
|
|
Other employee
expense
|
658
|
|
621
|
|
752
|
|
643
|
|
642
|
|
Insurance
expense
|
1,615
|
|
1,383
|
|
868
|
|
1,831
|
|
1,851
|
|
Other
expense
|
7,209
|
|
5,424
|
|
6,370
|
|
7,759
|
|
6,424
|
|
Total noninterest
expense
|
48,098
|
|
51,263
|
|
54,071
|
|
65,448
|
|
53,009
|
|
Income before
income taxes
|
16,205
|
|
29,419
|
|
16,360
|
|
36,571
|
|
6,582
|
|
Income tax
provision (benefit)
|
3,703
|
|
9,904
|
|
(4,246)
|
|
(1,656)
|
|
(5,971)
|
|
Net
income
|
$ 12,502
|
|
$ 19,515
|
|
$ 20,606
|
|
$ 38,227
|
|
$ 12,553
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.18
|
|
$ 0.28
|
|
$ 0.29
|
|
$ 0.56
|
|
$ 0.19
|
|
Diluted
|
$ 0.16
|
|
$ 0.26
|
|
$ 0.27
|
|
$ 0.52
|
|
$ 0.18
|
|
Average common
shares outstanding - basic
|
70,136
|
|
70,092
|
|
70,021
|
|
68,121
|
|
66,231
|
|
Average common
shares outstanding - diluted
|
75,759
|
|
75,752
|
|
75,659
|
|
73,377
|
|
70,555
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
$ 14,265
|
|
$ 19,369
|
|
$ 25,254
|
|
$ 43,808
|
|
$ 9,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
Selected Financial
Information
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
(Dollars in
thousands, except per share data)
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
Earnings
Summary
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
55,002
|
|
$
55,616
|
|
$
55,213
|
|
$
51,192
|
|
$
41,932
|
|
Interest
expense
|
3,539
|
|
3,399
|
|
2,835
|
|
2,987
|
|
2,648
|
|
Net interest
income
|
51,463
|
|
52,217
|
|
52,378
|
|
48,205
|
|
39,284
|
|
Provision for loan
losses - uncovered
|
5,655
|
|
7,784
|
|
3,219
|
|
6,424
|
|
6,569
|
|
Provision (benefit)
for loan losses - covered
|
(2,661)
|
|
(6,275)
|
|
(7,321)
|
|
(2,498)
|
|
(3,319)
|
|
Bargain purchase
gains
|
-
|
|
-
|
|
-
|
|
41,977
|
|
-
|
|
Noninterest
income
|
15,834
|
|
29,974
|
|
13,951
|
|
57,740
|
|
23,557
|
|
Noninterest
expense
|
48,098
|
|
51,263
|
|
54,071
|
|
65,448
|
|
53,009
|
|
Income before income
taxes
|
16,205
|
|
29,419
|
|
16,360
|
|
36,571
|
|
6,582
|
|
Income tax provision
(benefit)
|
3,703
|
|
9,904
|
|
(4,246)
|
|
(1,656)
|
|
(5,971)
|
|
Net income
|
12,502
|
|
19,515
|
|
20,606
|
|
38,227
|
|
12,553
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.18
|
|
$
0.28
|
|
$
0.29
|
|
$
0.56
|
|
$
0.19
|
|
Diluted earnings per
common share
|
0.16
|
|
0.26
|
|
0.27
|
|
0.52
|
|
0.18
|
|
Book value per common
share
|
10.80
|
|
10.59
|
|
10.33
|
|
10.05
|
|
9.32
|
|
Tangible book value
per share (1)
|
10.61
|
|
10.40
|
|
10.11
|
|
9.82
|
|
9.12
|
|
Shares outstanding
(in thousands)
|
70,532
|
|
70,504
|
|
70,451
|
|
69,962
|
|
66,234
|
|
Average common
diluted shares (in thousands)
|
75,759
|
|
75,752
|
|
75,659
|
|
73,377
|
|
70,555
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Period
End Balances
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
5,870,780
|
|
$
5,744,170
|
|
$
5,609,493
|
|
$
5,423,261
|
|
$
4,547,361
|
|
Securities
available-for-sale
|
740,819
|
|
734,489
|
|
731,700
|
|
632,047
|
|
620,083
|
|
Total
loans
|
4,249,127
|
|
4,035,125
|
|
3,755,487
|
|
3,643,196
|
|
3,003,984
|
|
Uncovered
loans
|
3,902,637
|
|
3,631,333
|
|
3,296,207
|
|
3,145,276
|
|
2,473,916
|
|
Covered
loans
|
346,490
|
|
403,792
|
|
459,280
|
|
497,920
|
|
530,068
|
|
FDIC indemnification
asset
|
67,026
|
|
82,441
|
|
102,694
|
|
119,045
|
|
131,861
|
|
Total
deposits
|
4,548,863
|
|
4,485,597
|
|
4,296,534
|
|
4,386,332
|
|
3,600,865
|
|
Total
liabilities
|
5,109,173
|
|
4,997,518
|
|
4,881,548
|
|
4,720,233
|
|
3,930,346
|
|
Total shareholders'
equity
|
761,607
|
|
746,652
|
|
727,945
|
|
703,028
|
|
617,015
|
|
Tangible
shareholders' equity (1)
|
748,572
|
|
732,956
|
|
712,567
|
|
686,926
|
|
603,810
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance and
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.85
|
%
|
1.36
|
%
|
1.51
|
%
|
2.75
|
%
|
1.08
|
%
|
Return on average
equity
|
6.63
|
|
10.56
|
|
11.61
|
|
22.15
|
|
8.24
|
|
Net interest margin
(fully taxable equivalent) (2)
|
3.89
|
|
4.05
|
|
4.34
|
|
3.95
|
|
3.72
|
|
Core efficiency ratio
(1)
|
67.09
|
|
70.81
|
|
71.97
|
|
82.12
|
|
88.22
|
|
Tangible average
equity to tangible average assets (1)
|
12.67
|
|
12.64
|
|
12.79
|
|
12.17
|
|
12.91
|
|
Tier 1 leverage ratio
(3)
|
11.56
|
|
11.45
|
|
11.71
|
|
11.13
|
|
12.19
|
|
Tier 1 risk-based
capital (3)
|
15.20
|
|
15.56
|
|
16.16
|
|
16.54
|
|
18.29
|
|
Total risk-based
capital (3)
|
16.44
|
|
16.76
|
|
17.31
|
|
17.60
|
|
19.21
|
|
|
|
|
|
|
|
|
-
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans, excluding covered loans
|
0.18
|
%
|
0.25
|
%
|
0.20
|
%
|
0.17
|
%
|
0.71
|
%
|
Nonperforming assets
as a percentage of total assets
|
1.78
|
|
1.73
|
|
1.60
|
|
1.79
|
|
1.55
|
|
Nonperforming loans
as a percent of total loans
|
1.34
|
|
1.38
|
|
1.04
|
|
1.13
|
|
1.40
|
|
Nonperforming loans
as a percent of total loans, excluding covered loans
|
0.90
|
|
1.19
|
|
0.79
|
|
0.81
|
|
0.98
|
|
Allowance for loan
losses as a percentage of period-end loans
|
1.30
|
|
1.38
|
|
1.52
|
|
1.67
|
|
1.93
|
|
Allowance for loan
losses-uncovered as a percentage of period-end uncovered
loans
|
0.87
|
|
0.82
|
|
0.74
|
|
0.72
|
|
0.72
|
|
Allowance for loan
losses as a percentage of nonperforming loans, excluding loans
accounted for under ASC 310-30
|
39.39
|
|
33.68
|
|
42.07
|
|
50.61
|
|
43.52
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See section
entitled "Reconciliation of Non-GAAP Financial
Measures."
|
|
|
|
|
|
(2) Presented
on a tax equivalent basis using a 35% tax rate for all periods
presented.
|
|
|
|
|
|
(3) Fourth quarter
2014 is estimated.
|
|
|
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
Loan
Data
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Uncovered
loans
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
$
1,426,012
|
|
$
1,430,939
|
|
$
1,362,869
|
|
$
1,267,714
|
|
$
1,085,453
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied
|
888,650
|
|
814,179
|
|
731,743
|
|
742,151
|
|
581,651
|
Owner-occupied
|
417,843
|
|
379,964
|
|
371,406
|
|
377,678
|
|
148,545
|
Farmland
|
4,445
|
|
19,218
|
|
28,199
|
|
27,964
|
|
25,643
|
Total commercial real
estate
|
1,310,938
|
|
1,213,361
|
|
1,131,348
|
|
1,147,793
|
|
755,839
|
Commercial and
industrial
|
869,477
|
|
790,867
|
|
647,090
|
|
573,268
|
|
446,644
|
Real estate
construction
|
131,686
|
|
102,920
|
|
112,866
|
|
143,569
|
|
176,226
|
Consumer
|
164,524
|
|
93,246
|
|
42,034
|
|
12,932
|
|
9,754
|
Total uncovered
loans
|
3,902,637
|
|
3,631,333
|
|
3,296,207
|
|
3,145,276
|
|
2,473,916
|
|
|
|
|
|
|
|
|
|
|
Covered
loans
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
108,226
|
|
113,228
|
|
117,507
|
|
119,408
|
|
123,334
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied
|
108,692
|
|
121,491
|
|
142,846
|
|
143,460
|
|
154,951
|
Owner-occupied
|
70,492
|
|
80,990
|
|
91,829
|
|
108,630
|
|
115,435
|
Farmland
|
7,478
|
|
17,015
|
|
21,541
|
|
27,059
|
|
29,015
|
Total commercial real
estate
|
186,662
|
|
219,496
|
|
256,216
|
|
279,149
|
|
299,401
|
Commercial and
industrial
|
32,648
|
|
47,252
|
|
60,497
|
|
71,155
|
|
78,437
|
Real estate
construction
|
9,389
|
|
13,734
|
|
14,391
|
|
16,895
|
|
17,218
|
Consumer
|
9,565
|
|
10,082
|
|
10,669
|
|
11,313
|
|
11,678
|
Total covered
loans
|
346,490
|
|
403,792
|
|
459,280
|
|
497,920
|
|
530,068
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
$
4,249,127
|
|
$
4,035,125
|
|
$
3,755,487
|
|
$
3,643,196
|
|
$
3,003,984
|
|
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Impaired
Loans
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
4th Qtr
2014
|
|
3rd Qtr
2014
|
|
2nd Qtr
2014
|
|
1st Qtr
2014
|
|
4th Qtr
2013
|
Uncovered
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
3,984
|
|
$
2,284
|
|
$
1,920
|
|
$
2,189
|
|
$
2,469
|
Commercial real
estate
|
|
2,644
|
|
3,122
|
|
2,842
|
|
2,664
|
|
3,581
|
Commercial and
industrial
|
|
180
|
|
135
|
|
541
|
|
526
|
|
415
|
Consumer
|
|
83
|
|
84
|
|
90
|
|
2
|
|
3
|
Total nonperforming
troubled debt restructurings
|
|
6,891
|
|
5,625
|
|
5,393
|
|
5,381
|
|
6,468
|
Nonaccrual loans
other than nonperforming troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
13,390
|
|
13,449
|
|
11,708
|
|
11,633
|
|
12,946
|
Commercial real
estate
|
|
11,112
|
|
9,456
|
|
6,590
|
|
6,174
|
|
2,010
|
Commercial and
industrial
|
|
3,370
|
|
14,339
|
|
2,074
|
|
1,723
|
|
2,266
|
Real estate
construction
|
|
174
|
|
253
|
|
158
|
|
582
|
|
510
|
Consumer
|
|
174
|
|
161
|
|
76
|
|
100
|
|
97
|
Total nonaccrual
loans other than nonperforming troubled debt
restructurings
|
|
28,220
|
|
37,658
|
|
20,606
|
|
20,212
|
|
17,829
|
Total nonaccrual
loans
|
|
35,111
|
|
43,283
|
|
25,999
|
|
25,593
|
|
24,297
|
Other real estate
owned and repossessed assets (1)
|
|
36,872
|
|
32,046
|
|
39,848
|
|
45,716
|
|
17,046
|
Total nonperforming
assets
|
|
71,983
|
|
75,329
|
|
65,847
|
|
71,309
|
|
41,343
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
1,368
|
|
1,802
|
|
1,628
|
|
828
|
|
328
|
Commercial real
estate
|
|
3,785
|
|
2,961
|
|
2,588
|
|
3,003
|
|
1,637
|
Commercial and
industrial
|
|
840
|
|
652
|
|
995
|
|
1,365
|
|
1,367
|
Real estate
construction
|
|
90
|
|
92
|
|
94
|
|
96
|
|
90
|
Consumer
|
|
234
|
|
56
|
|
29
|
|
30
|
|
30
|
Total performing
troubled debt restructurings
|
|
6,317
|
|
5,563
|
|
5,334
|
|
5,322
|
|
3,452
|
Total uncovered
impaired assets
|
|
$
78,300
|
|
$
80,892
|
|
$
71,181
|
|
$
76,631
|
|
$
44,795
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more
past due and still accruing, excluding loans accounted for under
ASC 310-30
|
|
$
53
|
|
$
595
|
|
$
305
|
|
$
3
|
|
$
539
|
|
|
|
|
|
|
|
|
|
|
|
Covered
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
1,363
|
|
$
1,304
|
|
$
1,408
|
|
$
962
|
|
$
900
|
Commercial real
estate
|
|
14,343
|
|
4,144
|
|
4,861
|
|
6,235
|
|
6,561
|
Commercial and
industrial
|
|
2,043
|
|
2,438
|
|
2,089
|
|
2,780
|
|
3,052
|
Real estate
construction
|
|
272
|
|
614
|
|
595
|
|
1,023
|
|
926
|
Consumer
|
|
13
|
|
42
|
|
15
|
|
25
|
|
25
|
Total nonperforming
troubled debt restructurings
|
|
18,034
|
|
8,542
|
|
8,968
|
|
11,025
|
|
11,464
|
Nonaccrual loans
other than nonperforming troubled debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
485
|
|
433
|
|
426
|
|
368
|
|
88
|
Commercial real
estate
|
|
1,380
|
|
1,313
|
|
1,489
|
|
1,563
|
|
1,563
|
Commercial and
industrial
|
|
1,517
|
|
1,653
|
|
1,751
|
|
2,124
|
|
4,149
|
Real estate
construction
|
|
441
|
|
441
|
|
439
|
|
442
|
|
446
|
Consumer
|
|
-
|
|
-
|
|
1
|
|
-
|
|
6
|
Total nonaccrual
loans other than nonperforming troubled debt
restructurings
|
|
3,823
|
|
3,840
|
|
4,106
|
|
4,497
|
|
6,252
|
Total nonaccrual
loans
|
|
21,857
|
|
12,382
|
|
13,074
|
|
15,522
|
|
17,716
|
Other real estate
owned
|
|
10,719
|
|
11,835
|
|
10,975
|
|
10,184
|
|
11,598
|
Total nonperforming
assets
|
|
32,576
|
|
24,217
|
|
24,049
|
|
25,706
|
|
29,314
|
|
|
|
|
|
|
|
|
|
|
|
Performing troubled
debt restructurings
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
3,046
|
|
2,860
|
|
2,821
|
|
2,582
|
|
2,691
|
Commercial real
estate
|
|
9,017
|
|
14,915
|
|
16,102
|
|
15,056
|
|
14,391
|
Commercial and
industrial
|
|
1,137
|
|
2,119
|
|
2,962
|
|
3,030
|
|
3,802
|
Real estate
construction
|
|
264
|
|
108
|
|
109
|
|
111
|
|
163
|
Total performing
troubled debt restructurings
|
|
13,464
|
|
20,002
|
|
21,994
|
|
20,779
|
|
21,047
|
Total covered
impaired assets
|
|
$
46,040
|
|
$
44,219
|
|
$
46,043
|
|
$
46,485
|
|
$
50,361
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more
past due and still accruing, excluding loans accounted for under
ASC 310-30
|
|
$
-
|
|
$
-
|
|
$
49
|
|
$
7
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes closed
branches and operating facilities.
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income and Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
Three months
ended
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
(Dollars in
thousands)
|
Average
Balance
|
Interest
(1)
|
Average Rate
(2)
|
|
Average
Balance
|
Interest
(1)
|
Average Rate
(2)
|
|
Average
Balance
|
Interest
(1)
|
Average Rate
(2)
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning balances
|
$ 147,713
|
$
94
|
0.25
|
%
|
$ 264,158
|
$
159
|
0.24
|
%
|
$ 278,114
|
$
188
|
0.27
|
%
|
Federal
funds sold and other short-term
investments
|
69,897
|
126
|
0.71
|
|
76,724
|
130
|
0.67
|
|
103,011
|
204
|
0.79
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
519,774
|
2,263
|
1.73
|
|
515,388
|
2,241
|
1.73
|
|
451,467
|
1,880
|
1.65
|
|
Tax-exempt
|
223,580
|
1,610
|
3.82
|
|
205,329
|
1,444
|
3.77
|
|
187,911
|
1,098
|
3.13
|
|
FHLB Stock
|
18,671
|
177
|
3.77
|
|
17,333
|
177
|
4.04
|
|
16,303
|
160
|
3.90
|
|
Gross
uncovered loans (4)
|
3,865,553
|
45,863
|
4.71
|
|
3,548,152
|
44,444
|
4.97
|
|
2,507,233
|
29,615
|
4.69
|
|
Gross
covered loans (4)
|
377,776
|
12,408
|
13.03
|
|
439,366
|
13,684
|
12.36
|
|
539,570
|
15,739
|
11.57
|
|
FDIC
indemnification asset
|
77,865
|
(7,539)
|
(38.41)
|
|
99,335
|
(6,663)
|
(26.61)
|
|
144,949
|
(6,952)
|
(19.03)
|
|
Total earning assets
|
5,300,829
|
55,002
|
4.16
|
%
|
5,165,785
|
55,616
|
4.31
|
%
|
4,228,558
|
41,932
|
3.97
|
%
|
Non-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
101,884
|
|
|
|
114,156
|
|
|
|
108,944
|
|
|
|
Allowance for loan losses
|
(52,808)
|
|
|
|
(55,579)
|
|
|
|
(57,114)
|
|
|
|
Premises
and equipment
|
48,587
|
|
|
|
51,636
|
|
|
|
52,870
|
|
|
|
Core
deposit intangible
|
13,334
|
|
|
|
14,398
|
|
|
|
13,527
|
|
|
|
Other
real estate owned and repossessed assets
|
48,983
|
|
|
|
49,464
|
|
|
|
31,425
|
|
|
|
Loan
servicing rights
|
73,059
|
|
|
|
73,996
|
|
|
|
73,680
|
|
|
|
FDIC
receivable
|
11,013
|
|
|
|
5,886
|
|
|
|
10,392
|
|
|
|
Company-owned life insurance
|
97,081
|
|
|
|
95,930
|
|
|
|
39,337
|
|
|
|
Other
non-earning assets
|
223,662
|
|
|
|
230,931
|
|
|
|
126,548
|
|
|
|
Total assets
|
$ 5,865,624
|
|
|
|
$ 5,746,603
|
|
|
|
$ 4,628,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
$ 676,994
|
$
194
|
0.11
|
%
|
$ 657,107
|
$
190
|
0.11
|
%
|
$ 595,362
|
$
173
|
0.12
|
%
|
Money
market and savings deposits
|
1,174,132
|
457
|
0.15
|
|
1,237,984
|
487
|
0.16
|
|
1,225,280
|
430
|
0.14
|
|
Time
deposits
|
1,219,758
|
1,546
|
0.50
|
|
1,236,286
|
1,611
|
0.52
|
|
943,778
|
1,250
|
0.53
|
|
Other
brokered funds
|
543,784
|
527
|
0.38
|
|
361,929
|
288
|
0.32
|
|
80,000
|
32
|
0.16
|
|
Short-term borrowings
|
165,515
|
90
|
0.22
|
|
219,859
|
122
|
0.22
|
|
40,219
|
24
|
0.24
|
|
Long-term debt
|
326,924
|
725
|
0.88
|
|
280,054
|
701
|
0.99
|
|
252,173
|
739
|
1.16
|
|
Total interest-bearing liabilities
|
4,107,107
|
3,539
|
0.34
|
%
|
3,993,219
|
3,399
|
0.34
|
%
|
3,136,812
|
2,648
|
0.33
|
%
|
Noninterest-bearing liabilities
and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
934,143
|
|
|
|
961,559
|
|
|
|
819,961
|
|
|
|
FDIC
clawback liability
|
25,923
|
|
|
|
26,492
|
|
|
|
24,485
|
|
|
|
Other
liabilities
|
43,729
|
|
|
|
26,463
|
|
|
|
37,564
|
|
|
|
Shareholders' equity
|
754,722
|
|
|
|
738,870
|
|
|
|
609,345
|
|
|
|
Total liabilities and shareholders' equity
|
$ 5,865,624
|
|
|
|
$ 5,746,603
|
|
|
|
$ 4,628,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
51,463
|
|
|
|
$
52,217
|
|
|
|
$
39,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
spread
|
|
|
3.82
|
%
|
|
3.97
|
%
|
|
|
3.64
|
%
|
Net interest
margin as a percentage of interest-earning assets
|
|
|
3.85
|
%
|
|
4.01
|
%
|
|
|
3.68
|
%
|
Tax equivalent
effect
|
|
|
0.04
|
%
|
|
0.04
|
%
|
|
|
0.04
|
%
|
Net interest
margin as a percentage of
interest-earning assets (FTE)
|
|
|
3.89
|
%
|
|
4.05
|
%
|
|
|
3.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income
is shown on actual basis and does not include taxable equivalent
adjustments.
|
|
|
|
|
|
|
|
|
|
(2) Average rates are
presented on an annual basis and include a taxable equivalent
adjustment to interest income of $542 thousand, $505 thousand and
$384 thousand on tax-exempt securities for the three months ended
December 31, 2014, September 30, 2014, and December 31, 2013,
respectively, using the statutory tax rate of 35%.
|
(3) For presentation
in this table, average balances and the corresponding average rates
for investment securities are based upon historical cost, adjusted
for amortization of premiums and accretion of discounts.
|
(4) Includes
nonaccrual loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
|
|
Net Interest
Income and Net Interest Margin
|
|
|
|
|
(Unaudited)
|
|
For the years
ended December 31,
|
|
|
2014
|
|
2013
|
|
(Dollars in
thousands)
|
|
Average
Balance
|
Interest
(1)
|
Average Rate
(2)
|
|
Average
Balance
|
Interest
(1)
|
Average Rate
(2)
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
Interest-earning balances
|
|
$
265,155
|
$
640
|
0.24
|
%
|
$
307,256
|
$
776
|
0.25
|
%
|
Federal
funds sold and other short-term
investments
|
|
73,453
|
527
|
0.72
|
|
111,239
|
930
|
0.84
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
505,754
|
8,509
|
1.68
|
|
451,517
|
6,097
|
1.35
|
|
Tax-exempt
|
|
197,786
|
6,232
|
4.22
|
|
179,382
|
4,230
|
3.18
|
|
Federal
Home Loan Bank stock
|
|
17,841
|
867
|
4.86
|
|
16,162
|
872
|
5.40
|
|
Gross
uncovered loans (4)
|
|
3,473,608
|
171,196
|
4.93
|
|
2,431,647
|
117,117
|
4.82
|
|
Gross
covered loans (4)
|
|
451,590
|
55,478
|
12.28
|
|
659,820
|
77,740
|
11.78
|
|
FDIC
indemnification asset
|
|
105,034
|
(26,426)
|
(25.16)
|
|
181,768
|
(28,040)
|
(15.43)
|
|
Total earning assets
|
|
5,090,221
|
217,023
|
4.31
|
|
4,338,791
|
179,722
|
4.18
|
|
Non-earning
assets:
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
97,935
|
|
|
|
107,249
|
|
|
|
Allowance for loan losses
|
|
(56,094)
|
|
|
|
(59,123)
|
|
|
|
Premises
and equipment
|
|
53,142
|
|
|
|
56,885
|
|
|
|
Core
deposit intangible
|
|
15,055
|
|
|
|
14,524
|
|
|
|
Other
real estate owned and repossessed assets
|
|
53,513
|
|
|
|
37,700
|
|
|
|
Loan
servicing rights
|
|
75,863
|
|
|
|
61,848
|
|
|
|
FDIC
receivable
|
|
7,592
|
|
|
|
12,520
|
|
|
|
Company-owned life insurance
|
|
81,245
|
|
|
|
38,843
|
|
|
|
Other
non-earning assets
|
|
224,232
|
|
|
|
116,548
|
|
|
|
Total assets
|
|
$ 5,642,704
|
|
|
|
$ 4,725,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
689,225
|
$
824
|
0.12
|
%
|
$
564,447
|
673
|
0.12
|
%
|
Money
market and savings deposits
|
|
1,289,388
|
1,930
|
0.15
|
|
1,231,066
|
1,889
|
0.15
|
|
Time
deposits
|
|
1,247,907
|
6,080
|
0.49
|
|
1,079,779
|
5,864
|
0.54
|
|
Other
brokered funds
|
|
268,080
|
879
|
0.33
|
|
76,134
|
142
|
0.19
|
|
Short-term borrowings
|
|
153,951
|
420
|
0.27
|
|
49,493
|
105
|
0.21
|
|
Long-term debt
|
|
257,487
|
2,627
|
1.02
|
|
260,514
|
3,052
|
1.17
|
|
Total interest-bearing liabilities
|
|
3,906,038
|
12,760
|
0.33
|
|
3,261,433
|
11,725
|
0.36
|
|
Noninterest-bearing liabilities
and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
943,321
|
|
|
|
765,853
|
|
|
|
FDIC
clawback liability
|
|
25,823
|
|
|
|
23,364
|
|
|
|
Other
liabilities
|
|
38,829
|
|
|
|
71,478
|
|
|
|
Shareholders' equity
|
|
728,693
|
|
|
|
603,657
|
|
|
|
Total liabilities and shareholders' equity
|
|
$ 5,642,704
|
|
|
|
$ 4,725,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$ 204,263
|
|
|
|
$ 167,997
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
spread
|
|
|
|
3.98
|
%
|
|
3.82
|
%
|
Net interest
margin as a percentage of interest-earning assets
|
|
|
|
4.01
|
%
|
|
3.87
|
%
|
Tax equivalent
effect
|
|
|
|
0.03
|
%
|
|
0.03
|
%
|
Net interest
margin as a percentage of
interest-earning assets (FTE)
|
|
|
|
4.04
|
%
|
|
3.90
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income
is shown on actual basis and does not include taxable equivalent
adjustments.
|
|
|
(2) Average rates are
presented on an annual basis and include a taxable equivalent
adjustment to interest income of $2.1 million and $1.5 million on
tax-exempt securities for the years ended December 31, 2014 and
2013, respectively, using the statutory tax rate of
35%.
|
(3) For presentation
in this table, average balances and the corresponding average rates
for investment securities are based upon historical cost, adjusted
for amortization of premiums and accretion of discounts.
|
(4) Includes
nonaccrual loans.
|
|
|
|
|
|
|
|
|
|
Talmer Bancorp,
Inc.
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (1)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
(Dollars in
thousands, except per share data)
|
4th
Quarter
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
761,607
|
|
$ 746,652
|
|
$ 727,945
|
|
$ 703,028
|
|
$ 617,015
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Core deposit
intangibles
|
13,035
|
|
13,696
|
|
15,378
|
|
16,102
|
|
13,205
|
|
Tangible
shareholders' equity
|
$
748,572
|
|
$ 732,956
|
|
$ 712,567
|
|
$ 686,926
|
|
$ 603,810
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value per share:
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding
|
70,532
|
|
70,504
|
|
70,451
|
|
69,962
|
|
66,234
|
|
Tangible book value
per share
|
$
10.61
|
|
$
10.40
|
|
$
10.11
|
|
$
9.82
|
|
$
9.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible average
equity to tangible average assets:
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
$ 5,865,624
|
|
$ 5,746,603
|
|
$ 5,445,770
|
|
$ 5,550,329
|
|
$ 4,628,167
|
|
Average
equity
|
754,722
|
|
738,870
|
|
709,982
|
|
690,214
|
|
609,345
|
|
Average core deposit
intangibles
|
13,334
|
|
14,398
|
|
15,740
|
|
16,794
|
|
13,527
|
|
Tangible average
equity to tangible average assets
|
12.67
|
%
|
12.64
|
%
|
12.79
|
%
|
12.17
|
%
|
12.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Core efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
51,463
|
|
$
52,217
|
|
$
52,378
|
|
$
48,205
|
|
$
39,284
|
|
Noninterest
income
|
15,834
|
|
29,974
|
|
13,951
|
|
57,740
|
|
23,557
|
|
Total
revenue
|
67,297
|
|
82,191
|
|
66,329
|
|
105,945
|
|
62,841
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
(Expense)/benefit due
to change in the fair value of loan servicing rights
|
(3,657)
|
|
(176)
|
|
(4,200)
|
|
(2,205)
|
|
6,852
|
|
FDIC loss sharing
income
|
(244)
|
|
(2,420)
|
|
(3,434)
|
|
(113)
|
|
(3,167)
|
|
Net gains on sales of
branches
|
-
|
|
14,410
|
|
-
|
|
-
|
|
-
|
|
Bargain purchase
gain
|
-
|
|
-
|
|
-
|
|
41,977
|
|
-
|
|
Total core
revenue
|
71,198
|
|
70,377
|
|
73,963
|
|
66,286
|
|
59,156
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense
|
48,098
|
|
51,263
|
|
54,071
|
|
65,448
|
|
53,009
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Transaction and
integration related costs
|
329
|
|
1,428
|
|
837
|
|
11,015
|
|
819
|
|
Total core
noninterest expense
|
47,769
|
|
49,835
|
|
53,234
|
|
54,433
|
|
52,190
|
|
|
|
|
|
|
|
|
|
|
|
|
Core efficiency
ratio
|
67.09
|
%
|
70.81
|
%
|
71.97
|
%
|
82.12
|
%
|
88.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management
believes these non-GAAP financial measures provide useful
information to both management and investors that is supplementary
to our financial condition and results of operations in accordance
with GAAP; however, we do acknowledge that our non-GAAP financial
measures have a number of limitations. As such, you should
not view these disclosures as a substitute for results determined
in accordance with GAAP, and they are not necessarily comparable to
non-GAAP financial measures that other companies
use.
|
|
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SOURCE Talmer Bancorp, Inc.