LITITZ, Pa.--(BUSINESS WIRE)--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced that it earned net income applicable to common shareholders for the second quarter ended June 30, 2012 of $37.8 million, or $0.20 per diluted share, compared to net income applicable to common shareholders of $11.1 million for the second quarter of 2011, or $0.09 per diluted share. Net income for the first six months of 2012 was $61.3 million, or $0.34 per diluted share, compared with $20.8 million, or $0.16 per diluted share for the first six months of 2011.
“We continue to recognize the benefits of our recent acquisitions and improving credit and core operating performance,” stated William J. Reuter, Chairman and Chief Executive Officer. “We are pleased with the energy and momentum that we are taking into the second half of the year and remain very focused on executing our Main Street relationship banking strategy to achieve our objectives for 2012 and beyond.”
Linked Quarter Results (Second Quarter 2012 vs. First Quarter 2012)
-
Loans and leases increased 0.5% from March 31, 2012 to $12.6 billion
at June 30, 2012.
- Susquehanna originated a gross amount of $862 million in new loans and leases during the second quarter, an increase of 9.2% over the $790 million originated in the first quarter of 2012.
- Excluding real estate construction loans, loans and leases increased by $121.1 million, or 1.1%.
- Commercial loans increased 0.6%.
- Real estate – construction loans decreased 5.7%.
- Real estate secured – residential loans increased 0.6%.
- Real estate secured – commercial loans increased 0.3%.
- Consumer loans increased 3.8%.
- Leases increased 6.2%.
-
Total deposits increased 1.0% from March 31, 2012 to $12.7 billion at
June 30, 2012, as deposit growth was impacted by the anticipated
runoff of deposits assumed in recent acquisitions, including higher
cost money market accounts.
- Non-interest bearing demand deposits decreased 0.3%.
- Interest-bearing demand deposits decreased 1.3%.
- Savings deposits were generally flat.
- Time deposits increased 5.1%.
- Non-core items for the second quarter of 2012, after tax, were merger related expenses of $2.4 million, partially offset by net securities gains of $900 thousand.
- Net interest margin increased 16 basis points to 4.10% compared to 3.94% for the first quarter of 2011, resulting principally from the impact of purchase accounting in connection with the acquisition of Tower Bancorp, Inc. (“Tower”), together with a full quarter of the Tower loan and deposit portfolios and offset by compression at core Susquehanna.
- Non-interest income was $39.8 million for the second quarter of 2012, impacted by a full quarter of fees from the expanded customer base resulting from the Tower acquisition, as well as a 24% increase in mortgage banking income. Non-interest income for the quarter also includes pre-tax net securities gains of $1.4 million.
- Non-interest expense for the second quarter of 2012 increased to $121.5 million, as Susquehanna recognized a full quarter of expenses resulting from the Tower acquisition without yet realizing a full quarter of anticipated cost savings from the Tower acquisition or core Susquehanna expense initiatives. Non-interest expense also includes pre-tax merger related expenses of $3.3 million.
Linked Quarter Results (Second Quarter 2012 vs. First Quarter 2012) (Continued)
- The efficiency ratio for the second quarter of 2012 improved to 60.21% from 61.39% for the first quarter of 2012, in each case calculated after excluding pre-tax merger related expenses.
- Net charge-offs as a percentage of average loans and leases for the quarter ended June 30, 2012 was 0.65% compared to 0.44% for the first quarter of 2012. Non-performing assets as a percentage of loans, leases and foreclosed real estate owned decreased 9 basis points from March 31, 2012 to 1.26% at June 30, 2012. The provision for loan and lease losses for the quarter ended June 30, 2012 was $16.0 million, compared to $19.0 million for the quarter ended March 31, 2012. The allowance for loan and lease losses was $190.6 million at June 30, 2012, representing 1.51% of total loans and lease and 150% of nonaccrual loans and leases, compared to $194.7 million at March 31, 2012, representing 1.56% of total loans and leases and 146% of nonaccrual loans and leases.
Second Quarter Financial Results:
-
Loans and leases increased 30.6% from June 30, 2011 to $12.6 billion
at June 30, 2012.
- Susquehanna originated a gross amount of $862 in new loans and leases during the second quarter, an increase of 30.2% over the $662 originated during the same period in 2011.
-
Growth in loans and leases consisted of:
- $630.3 million acquired through the acquisition of Abington Bancorp, Inc. (“Abington”);
- $2.0 billion acquired through the acquisition of Tower; and
- $343.9 million of internally-generated loan growth, resulting in internal growth in loans and leases of 3.6% for the trailing four quarters.
- Commercial loans increased 17.2%.
- Real estate - construction loans increased 20.9%.
- Real estate secured - residential loans increased 46.8%.
- Real estate secured - commercial loans increased 34.5%.
- Consumer loans increased 21.0%.
- Leases increased 5.8%.
-
Total deposits increased 35.0% from June 30, 2011 to $12.7 billion at
June 30, 2012.
-
Growth in total deposits consisted of:
- $857.3 million of deposits assumed in the Abington acquisition;
- $2.0 billion of deposits assumed in the Tower acquisition; and
- $356.3 million in organic deposit growth, resulting in organic deposit growth of 3.8% for the trailing four quarters.
- Non-interest-bearing demand deposits increased 36.5%.
- Interest-bearing demand deposits increased 50.7%.
- Savings deposits increased 24.8%.
- Time deposits increased 20.8%.
-
Growth in total deposits consisted of:
Second Quarter Financial Results (Continued)
- Net interest margin increased 48 basis points to 4.10% compared to 3.62% for the second quarter of 2011, driven primarily by the balance sheet restructuring in the fourth quarter of 2011, purchase accounting in connection with the Tower acquisition, the addition of the Tower deposit and loan portfolios and continued core reduction in funding costs at Susquehanna.
- The efficiency ratio for the second quarter of 2012 improved to 60.21% from 68.26% in the second quarter of 2011, in each case calculated after excluding pre-tax merger related expenses.
- Net charge-offs as a percentage of average loans and leases for the quarter ended June 30, 2012 was 0.65% compared to 1.33% for the second quarter of 2011. Non-performing assets as a percentage of loans, leases and foreclosed real estate was 1.26% at June 30, 2012 compared to 2.26% at June 30, 2011. The provision for loan and lease losses for the quarter ended June 30, 2012 was $16.0 million, compared to $28.0 million for the quarter ended June 30, 2011. The allowance for loan and lease losses was $190.6 million at June 30, 2012, representing 1.51% of total loans and leases and 150% of nonaccrual loans and leases, compared to $189.3 million at June 30, 2011, representing 1.96% of total loans and leases and 99% of nonaccrual loans and leases.
- Return on average assets and average tangible equity (1) for the second quarter ended June 30, 2012 finished at 0.85% and 13.23%, respectively. This compared to results of 0.32% and 5.24% for the same measurements, respectively, for the second quarter of 2011.
- Return on average assets and average tangible equity(1) for the first six months of 2012 finished at 0.72% and 10.77%, respectively. This compared to results of 0.30% and 5.05% for the same measurements, respectively, for the first six months of 2011.
Second Quarter Financial Results (Continued)
- Susquehanna’s regulatory capital ratios are as follows:
|
Management |
Preliminary Minimum |
|||||
|
At June 30, 2012 |
Minimum Targets |
Basel III Requirements* |
||||
| Tangible Common Ratio(2) | 7.64% | 7.5% | N/A | |||
| Tier 1 Common Ratio | 9.97% | 8.0% | 7.0% | |||
| Leverage Ratio | 9.95% | 6.0% | 4.0% | |||
| Tier 1 Capital Ratio | 12.63% | 9.5% | 8.5% | |||
| Total Risk-Based Capital Ratio | 14.38% | 11.5% | 10.5% | |||
|
* Includes proposed conservation buffers |
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(1) A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures."
(2) Includes deferred tax liability associated with intangibles of $49.4 million
Additional Events
- On July 18, 2012, Susquehanna’s Board of Directors declared a third quarter dividend of $0.06 per common share, payable August 20, 2012 to shareholders of record as of July 31, 2012. This represents a $0.01 increase from the second quarter dividend of $0.05 per share.
- In response to the release by federal banking agencies of a joint notice of proposed rulemaking that addresses, among other things, Basel III capital guidelines and the capital treatment of certain securities, Susquehanna is conducting a thorough review and analysis of its options for redeeming certain trust preferred and other capital securities.
Susquehanna will broadcast its second quarter 2012 results conference call over the Internet on July 26, 2012 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of second quarter 2012 results. The discussion may also include forward-looking information and financial goals, including updates of previously disclosed financial goals. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Web site. The event may be accessed by selecting "Investor Relations" near the top right of the home page then “Overview” and clicking on the second quarter webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast will be available on the Web site shortly after the call concludes.
Susquehanna is a financial services holding company with assets of approximately $18 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 260 branch locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $7.5 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. Investor information may be requested through Susquehanna’s Web site at www.susquehanna.net.
This press release contains certain financial information determined by methods other than in accordance with GAAP. Susquehanna’s management uses these non-GAAP measures in its analysis of the company’s performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information.
The presentation of these non-GAAP financial measures is intended to supplement investors’ understanding of Susquehanna’s core business activities. These non-GAAP 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 which may be presented by other companies.
This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of Susquehanna’s business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; inability to achieve merger-related synergies; difficulties in integrating distinct business operations, including information technology difficulties; and deteriorating economic conditions, and other risks and uncertainties, including those detailed in Susquehanna’s filings with the Securities and Exchange Commission. Susquehanna encourages readers of this release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Forward-looking statements speak only as of the date they are made. Susquehanna does not intend to update publicly any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events except as required by law.
| Susquehanna Bancshares, Inc. | ||||||||
| 26 North Cedar Street | ||||||||
| Lititz, PA 17543 | ||||||||
| SUMMARY FINANCIAL INFORMATION | ||||||||
| (Dollars in thousands, except per common share data) | ||||||||
| Six Months | ||||||||
| 2Q12 | 2Q11 | 2012 | 2011 | |||||
| Balance Sheet (EOP) | ||||||||
| Investments | $2,866,119 | $2,615,203 | $2,866,119 | $2,615,203 | ||||
| Loans and leases | 12,585,912 | 9,636,187 | 12,585,912 | 9,636,187 | ||||
| Allowance for loan & lease losses (ALLL) | 190,628 | 189,292 | 190,628 | 189,292 | ||||
| Total assets | 18,040,009 | 14,157,744 | 18,040,009 | 14,157,744 | ||||
| Deposits | 12,690,524 | 9,402,515 | 12,690,524 | 9,402,515 | ||||
| Short-term borrowings | 648,675 | 635,183 | 648,675 | 635,183 | ||||
| Federal Home Loan Bank (FHLB) borrowings | 1,015,724 | 1,115,517 | 1,015,724 | 1,115,517 | ||||
| Other long-term debt | 678,282 | 683,867 | 678,282 | 683,867 | ||||
| Shareholders' equity | 2,544,730 | 2,022,902 | 2,544,730 | 2,022,902 | ||||
| Stated book value per common share | 13.67 | 15.55 | 13.67 | 15.55 | ||||
| Tangible book value per common share | 6.59 | 7.50 | 6.59 | 7.50 | ||||
| Average Balance Sheet | ||||||||
| Investments | $2,704,232 | $2,473,101 | $2,625,820 | $2,475,425 | ||||
| Loans and leases | 12,527,713 | 9,620,320 | 11,969,652 | 9,602,309 | ||||
| Total earning assets | 15,332,806 | 12,171,868 | 14,699,194 | 12,156,630 | ||||
| Total assets | 17,799,678 | 14,035,708 | 17,037,226 | 14,000,922 | ||||
| Deposits | 12,471,296 | 9,341,761 | 11,912,917 | 9,292,581 | ||||
| Other short-term borrowings | 726,309 | 667,856 | 684,218 | 707,588 | ||||
| Federal Home Loan Bank (FHLB) borrowings | 1,082,293 | 1,115,754 | 1,033,794 | 1,108,100 | ||||
| Other long-term debt | 686,492 | 690,573 | 680,107 | 695,522 | ||||
| Shareholders' equity | 2,537,250 | 2,000,395 | 2,442,788 | 1,992,024 | ||||
| Income Statement | ||||||||
| Net interest income | $152,670 | $106,086 | $286,792 | $211,109 | ||||
| Provision for loan and lease losses | 16,000 | 28,000 | 35,000 | 63,000 | ||||
| Noninterest income | 39,811 | 37,054 | 79,326 | 74,521 | ||||
| Noninterest expense | 121,475 | 101,157 | 241,830 | 197,039 | ||||
| Income before taxes | 55,006 | 13,983 | 89,288 | 25,591 | ||||
| Provision for income taxes | 17,213 | 2,928 | 28,022 | 4,775 | ||||
| Net income | 37,793 | 11,055 | 61,266 | 20,816 | ||||
| Basic earnings per common share | 0.20 | 0.09 | 0.34 | 0.16 | ||||
| Diluted earnings per common share | 0.20 | 0.09 | 0.34 | 0.16 | ||||
| Cash dividends paid per common share | 0.05 | 0.02 | 0.08 | 0.03 | ||||
| Asset Quality | ||||||||
| Net charge-offs (NCOs) | $20,102 | $31,941 | $32,472 | $65,542 | ||||
| Nonaccrual loans & leases | $127,250 | $190,733 | $127,250 | $190,733 | ||||
| Foreclosed real estate | 31,302 | 27,953 | 31,302 | 27,953 | ||||
| Total nonperforming assets (NPAs) | $158,552 | $218,686 | $158,552 | $218,686 | ||||
| Restructured loans | $66,777 | $62,143 | $66,777 | $62,143 | ||||
| Loans & leases 90 days past due | 11,203 | 18,268 | 11,203 | 18,268 | ||||
| Susquehanna Bancshares, Inc. | ||||||||
| 26 North Cedar Street | ||||||||
| Lititz, PA 17543 | ||||||||
| Six Months | ||||||||
| RATIO ANALYSIS | 2Q12 | 2Q11 | 2012 | 2011 | ||||
| Credit Quality | ||||||||
| NCOs / Average loans & leases | 0.65% | 1.33% | 0.55% | 1.38% | ||||
| NPAs / Loans & leases + foreclosed real estate | 1.26% | 2.26% | 1.26% | 2.26% | ||||
| ALLL / Nonaccrual loans & leases | 149.81% | 99.24% | 149.81% | 99.24% | ||||
| ALLL / Total loans & leases | 1.51% | 1.96% | 1.51% | 1.96% | ||||
| Capital Adequacy | ||||||||
| Equity / Assets | 14.11% | 14.29% | 14.11% | 14.29% | ||||
| Long-term debt / Equity | 26.65% | 33.81% | 26.65% | 33.81% | ||||
| Profitability | ||||||||
| Return on average assets | 0.85% | 0.32% | 0.72% | 0.30% | ||||
| Return on average equity | 5.99% | 2.22% | 5.04% | 2.11% | ||||
| Return on average tangible equity (2) | 13.23% | 5.24% | 10.77% | 5.05% | ||||
| Net interest margin | 4.10% | 3.62% | 4.03% | 3.62% | ||||
| Efficiency ratio (1) | 60.21% | 68.26% | 60.77% | 66.77% | ||||
| (1) Excludes Merger related expenses | ||||||||
| (2) Supplemental Reporting of Non-GAAP-based Financial Measures-Return on average tangible equity | ||||||||
Return on average tangible equity is a non-GAAP-based financial measure calculated using non-GAAP-based amounts. The most directly comparable measure is return on average equity which is calculated using GAAP-based amounts. We calculate return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from our calculation of return on average equity. Management uses the return on average tangible equity in order to review our core operating results. Management believes that this is a better measure of our performance. In addition, this is consistent with the treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios. A reconciliation of return on average equity to return on average tangible equity is set forth below.
| Six Months | ||||||||
| 2Q12 | 2Q11 | 2012 | 2011 | |||||
| Return on average equity (GAAP basis) | 5.99% | 2.22% | 5.04% | 2.11% | ||||
| Effect of excluding average intangible assets | ||||||||
| and related amortization | 7.24% | 3.02% | 5.73% | 2.94% | ||||
| Return on average tangible equity | 13.23% | 5.24% | 10.77% | 5.05% | ||||
| Susquehanna Bancshares, Inc. | ||||||||||||
| 26 North Cedar Street | ||||||||||||
| Lititz, PA 17543 | ||||||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| (in thousands, except share data) | ||||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 412,282 | $ | 276,384 | $ | 211,953 | ||||||
| Unrestricted short-term investments | 31,239 | 55,761 | 29,135 | |||||||||
|
Cash and cash equivalents |
443,521 | 332,145 | 241,088 | |||||||||
| Interest-bearing deposits held by consolidated variable interest entities that can be | ||||||||||||
| used only to settle obligations of the consolidated variable interest entities | 5,485 | 5,015 | 4,946 | |||||||||
| Restricted short-term investments | 67,650 | 60,910 | 48,660 | |||||||||
| Securities available for sale | 2,719,186 | 2,295,034 | 2,491,644 | |||||||||
| Restricted investment in bank stocks | 146,933 | 128,073 | 123,559 | |||||||||
| Loans and leases, net of deferred costs and fees | 12,409,181 | 10,257,161 | 9,431,453 | |||||||||
| Loans held by consolidated variable interest entities that can be used only to settle | ||||||||||||
| obligations of the consolidated variable interest entities | 176,731 | 190,769 | 204,734 | |||||||||
| Less: Allowance for loan and lease losses | 190,628 | 188,100 | 189,292 | |||||||||
| Net loans and leases | 12,395,284 | 10,259,830 | 9,446,895 | |||||||||
| Premises and equipment, net | 193,404 | 168,382 | 165,161 | |||||||||
| Other real estate and foreclosed assets | 37,220 | 41,716 | 29,426 | |||||||||
| Accrued interest receivable | 41,274 | 36,820 | 35,084 | |||||||||
| Bank-owned life insurance | 449,023 | 405,296 | 358,967 | |||||||||
| Goodwill | 1,269,205 | 1,018,031 | 1,018,031 | |||||||||
| Intangible assets with finite lives | 47,831 | 29,081 | 29,779 | |||||||||
| Deferred income tax assets | 47,914 | 6,344 | 4,873 | |||||||||
| Other assets | 176,079 | 188,112 | 159,631 | |||||||||
| Total assets | $ | 18,040,009 | $ | 14,974,789 | $ | 14,157,744 | ||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Deposits: | ||||||||||||
| Demand | $ | 1,940,990 | $ | 1,569,811 | $ | 1,421,947 | ||||||
| Interest-bearing demand | 5,423,198 | 4,439,488 | 3,598,052 | |||||||||
| Savings | 1,007,157 | 868,709 | 807,117 | |||||||||
| Time | 2,441,902 | 2,157,282 | 2,052,626 | |||||||||
| Time of $100 or more | 1,877,277 | 1,255,182 | 1,522,773 | |||||||||
| Total deposits | 12,690,524 | 10,290,472 | 9,402,515 | |||||||||
| Federal Home Loan Bank short-term borrowings | 900,000 | 900,000 | 400,000 | |||||||||
| Other short-term borrowings | 648,675 | 613,306 | 635,183 | |||||||||
| Federal Home Loan Bank long-term borrowings | 115,724 | 71,020 | 715,517 | |||||||||
| Other long-term debt | 200,298 | 176,030 | 176,034 | |||||||||
| Junior subordinated debentures | 346,393 | 323,317 | 323,125 | |||||||||
| Long-term debt of consolidated variable interest entities for which creditors do not | ||||||||||||
| have recourse to Susquehanna's general credit | 131,591 | 157,379 | 184,708 | |||||||||
| Accrued interest, taxes, and expenses payable | 83,102 | 50,670 | 48,343 | |||||||||
| Deferred income tax liabilities | 0 | 25,827 | 41,020 | |||||||||
| Other liabilities | 378,972 | 177,140 | 208,397 | |||||||||
| Total liabilities | 15,495,279 | 12,785,161 | 12,134,842 | |||||||||
| Shareholders' equity: | ||||||||||||
| Common stock, $2.00 par value, 400,000,000 shares authorized. Issued: | ||||||||||||
| 186,423,824 at June 30, 2012; 157,067,887 at December 31, 2011; | ||||||||||||
| and 130,070,101 at June 30, 2011 | 372,848 | 314,136 | 260,140 | |||||||||
| Treasury stock, at cost. 202,883 at June 30, 2012; 200,748 at December 31, 2011; | ||||||||||||
|
and 2,527 at June 30, 2011 |
(1,282 | ) | (1,263 | ) | (24 | ) | ||||||
| Additional paid-in capital | 1,643,474 | 1,397,152 | 1,298,109 | |||||||||
| Retained earnings | 572,818 | 525,657 | 498,881 | |||||||||
|
Accumulated other comprehensive loss, net of taxes of $24,126; $25,863; and $18,925 |
(43,128 | ) | (46,054 | ) | (34,204 | ) | ||||||
| Total shareholders' equity | 2,544,730 | 2,189,628 | 2,022,902 | |||||||||
| Total liabilities and shareholders' equity | $ | 18,040,009 | $ | 14,974,789 | $ | 14,157,744 | ||||||
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Susquehanna Bancshares, Inc. |
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26 North Cedar Street |
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Lititz, PA 17543 |
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| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Interest Income: | ||||||||||||||||
| Loans and leases, including deferred costs and fees | $ | 166,149 | $ | 127,199 | $ | 314,504 | $ | 253,998 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 12,956 | 15,026 | 25,748 | 30,706 | ||||||||||||
| Tax-exempt | 3,621 | 4,034 | 7,383 | 7,985 | ||||||||||||
| Dividends | 1,098 | 996 | 2,095 | 2,018 | ||||||||||||
| Short-term investments | 35 | 23 | 65 | 52 | ||||||||||||
| Total interest income | 183,859 | 147,278 | 349,795 | 294,759 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Interest-bearing demand and savings | 5,623 | 5,624 | 11,670 | 11,436 | ||||||||||||
| Time | 11,407 | 14,109 | 23,433 | 29,290 | ||||||||||||
| Federal Home Loan Bank short-term borrowings | 3,157 | 3,030 | 6,057 | 5,338 | ||||||||||||
| Other short-term borrowings | 2,179 | 1,837 | 4,301 | 3,734 | ||||||||||||
| Federal Home Loan Bank long-term borrowings | 302 | 7,799 | 360 | 15,883 | ||||||||||||
| Other long-term debt | 8,521 | 8,793 | 17,182 | 17,969 | ||||||||||||
| Total interest expense | 31,189 | 41,192 | 63,003 | 83,650 | ||||||||||||
| Net interest income | 152,670 | 106,086 | 286,792 | 211,109 | ||||||||||||
| Provision for loan and lease losses | 16,000 | 28,000 | 35,000 | 63,000 | ||||||||||||
| Net interest income, after provision for loan and lease losses | 136,670 | 78,086 | 251,792 | 148,109 | ||||||||||||
| Noninterest Income: | ||||||||||||||||
| Service charges on deposit accounts | 8,583 | 8,077 | 16,257 | 15,833 | ||||||||||||
| Vehicle origination and servicing fees | 2,226 | 1,996 | 4,150 | 3,899 | ||||||||||||
| Asset management fees | 7,359 | 7,125 | 14,432 | 14,286 | ||||||||||||
| Income from fiduciary-related activities | 2,539 | 1,853 | 5,162 | 3,688 | ||||||||||||
| Commissions on brokerage, life insurance and annuity sales | 2,399 | 2,356 | 4,306 | 4,610 | ||||||||||||
| Commissions on property and casualty insurance sales | 3,930 | 3,468 | 8,987 | 7,453 | ||||||||||||
| Other commissions and fees | 4,800 | 6,518 | 9,443 | 12,506 | ||||||||||||
| Income from bank-owned life insurance | 1,631 | 1,149 | 3,103 | 2,255 | ||||||||||||
| Net gain on sale of loans and leases | 4,396 | 2,419 | 8,146 | 6,470 | ||||||||||||
| Net realized gain on sales of securities | 1,361 | 1,060 | 1,746 | 2,930 | ||||||||||||
| Total other-than-temporary impairment, net of recoveries | 4,676 | (2,380 | ) | 1,970 | (4,366 | ) | ||||||||||
| Portion of recognized in other comprehensive income | ||||||||||||||||
| (before taxes) | (4,676 | ) | 1,767 | (2,114 | ) | 1,521 | ||||||||||
| Net impairment losses recognized in earnings | 0 | (613 | ) | (144 | ) | (2,845 | ) | |||||||||
| Other | 587 | 1,646 | 3,738 | 3,436 | ||||||||||||
| Total noninterest income | 39,811 | 37,054 | 79,326 | 74,521 | ||||||||||||
| Noninterest Expenses: | ||||||||||||||||
| Salaries and employee benefits | 64,524 | 53,412 | 122,482 | 104,404 | ||||||||||||
| Occupancy | 11,725 | 8,861 | 22,536 | 18,516 | ||||||||||||
| Furniture and equipment | 4,309 | 3,239 | 7,926 | 6,305 | ||||||||||||
| Advertising and marketing | 3,287 | 3,139 | 6,341 | 5,486 | ||||||||||||
| FDIC insurance | 4,769 | 5,406 | 9,947 | 8,787 | ||||||||||||
| Legal fees | 1,907 | 1,862 | 3,960 | 3,936 | ||||||||||||
| Amortization of intangible assets | 3,402 | 2,133 | 5,916 | 4,296 | ||||||||||||
| Vehicle lease disposal | 1,745 | 2,620 | 3,580 | 5,057 | ||||||||||||
| Merger related | 3,318 | 952 | 14,797 | 1,487 | ||||||||||||
| Other | 22,489 | 19,533 | 44,345 | 38,765 | ||||||||||||
| Total noninterest expenses | 121,475 | 101,157 | 241,830 | 197,039 | ||||||||||||
| Income before income taxes | 55,006 | 13,983 | 89,288 | 25,591 | ||||||||||||
| Provision for income taxes | 17,213 | 2,928 | 28,022 | 4,775 | ||||||||||||
| Net Income | $ | 37,793 | $ | 11,055 | $ | 61,266 | $ | 20,816 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.20 | $ | 0.09 | $ | 0.34 | $ | 0.16 | ||||||||
| Diluted | $ | 0.20 | $ | 0.09 | $ | 0.34 | $ | 0.16 | ||||||||
| Cash dividends per common share | $ | 0.05 | $ | 0.02 | $ | 0.08 | $ | 0.03 | ||||||||
| Average common shares outstanding: | ||||||||||||||||
| Basic | 187,616 | 129,761 | 179,471 | 129,744 | ||||||||||||
| Diluted | 188,301 | 129,832 | 180,156 | 129,826 | ||||||||||||
|
Susquehanna Bancshares, Inc. |
||||||||||||||||||
|
26 North Cedar Street |
||||||||||||||||||
|
Lititz, PA 17543 |
||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||
| June 30, 2012 | June 30, 2011 | |||||||||||||||||
| Average | Average | |||||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||||||
| Assets | ||||||||||||||||||
| Short-term investments | $ | 100,861 | $ | 35 | 0.14 | $ | 78,447 | $ | 23 | 0.12 | ||||||||
| Investment securities: | ||||||||||||||||||
| Taxable | 2,329,950 | 14,054 | 2.43 | 2,064,971 | 16,022 | 3.11 | ||||||||||||
| Tax-exempt | 374,282 | 5,571 | 5.99 | 408,130 | 6,206 | 6.10 | ||||||||||||
| Total investment securities | 2,704,232 | 19,625 | 2.92 | 2,473,101 | 22,228 | 3.61 | ||||||||||||
| Loans and leases, (net): | ||||||||||||||||||
| Taxable | 12,148,763 | 162,812 | 5.39 | 9,315,101 | 124,424 | 5.36 | ||||||||||||
| Tax-exempt | 378,950 | 5,134 | 5.45 | 305,219 | 4,270 | 5.61 | ||||||||||||
| Total loans and leases | 12,527,713 | 167,946 | 5.39 | 9,620,320 | 128,694 | 5.37 | ||||||||||||
| Total interest-earning assets | 15,332,806 | 187,606 | 4.92 | 12,171,868 | 150,945 | 4.97 | ||||||||||||
| Allowance for loan and lease losses | (190,095 | ) | (200,983 | ) | ||||||||||||||
| Other non-earning assets | 2,656,967 | 2,064,823 | ||||||||||||||||
| Total assets | $ | 17,799,678 | $ | 14,035,708 | ||||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Interest-bearing demand | $ | 5,479,962 | 5,292 | 0.39 | $ | 3,652,558 | 5,324 | 0.58 | ||||||||||
| Savings | 1,004,829 | 332 | 0.13 | 806,682 | 300 | 0.15 | ||||||||||||
| Time | 4,064,876 | 11,406 | 1.13 | 3,500,813 | 14,109 | 1.62 | ||||||||||||
| Other short-term borrowings | 726,309 | 2,179 | 1.21 | 667,856 | 1,837 | 1.10 | ||||||||||||
| FHLB borrowings | 1,082,293 | 3,459 | 1.29 | 1,115,754 | 10,829 | 3.89 | ||||||||||||
| Long-term debt | 686,492 | 8,522 | 4.99 | 690,573 | 8,793 | 5.11 | ||||||||||||
| Total interest-bearing liabilities | 13,044,761 | 31,190 | 0.96 | 10,434,236 | 41,192 | 1.58 | ||||||||||||
| Demand deposits | 1,921,629 | 1,381,708 | ||||||||||||||||
| Other liabilities | 296,038 | 219,369 | ||||||||||||||||
| Total liabilities | 15,262,428 | 12,035,313 | ||||||||||||||||
| Equity | 2,537,250 | 2,000,395 | ||||||||||||||||
| Total liabilities & shareholders' equity | $ | 17,799,678 | $ | 14,035,708 | ||||||||||||||
| Net interest income / yield on | ||||||||||||||||||
| average earning assets | $ | 156,416 | 4.10 | $ | 109,753 | 3.62 | ||||||||||||
|
1. |
Average loan balances include non accrual loans. |
|
|
2. |
Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal 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. |
|
|
|
| Susquehanna Bancshares, Inc. | ||||||||||||||||||
| 26 North Cedar Street | ||||||||||||||||||
| Lititz, PA 17543 | ||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest rates and interest differential-taxable equivalent basis | ||||||||||||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2012 | June 30, 2011 | |||||||||||||||||
| Average | Average | |||||||||||||||||
| (Dollars in thousands) | Balance | Interest | Rate (%) | Balance | Interest | Rate (%) | ||||||||||||
| Assets | ||||||||||||||||||
| Short-term investments | $ | 103,722 | $ | 65 | 0.13 | $ | 78,896 | $ | 52 | 0.13 | ||||||||
| Investment securities: | ||||||||||||||||||
| Taxable | 2,248,264 | 27,844 | 2.49 | 2,072,186 | 32,724 | 3.18 | ||||||||||||
| Tax-exempt | 377,556 | 11,358 | 6.05 | 403,239 | 12,285 | 6.14 | ||||||||||||
| Total investment securities | 2,625,820 | 39,202 | 3.00 | 2,475,425 | 45,009 | 3.67 | ||||||||||||
| Loans and leases, (net): | ||||||||||||||||||
| Taxable | 11,606,955 | 308,032 | 5.34 | 9,303,458 | 248,532 | 5.39 | ||||||||||||
| Tax-exempt | 362,697 | 9,957 | 5.52 | 298,851 | 8,409 | 5.67 | ||||||||||||
| Total loans and leases | 11,969,652 | 317,989 | 5.34 | 9,602,309 | 256,941 | 5.40 | ||||||||||||
| Total interest-earning assets | 14,699,194 | 357,256 | 4.89 | 12,156,630 | 302,002 | 5.01 | ||||||||||||
| Allowance for loan and lease losses | (190,700 | ) | (196,125 | ) | ||||||||||||||
| Other non-earning assets | 2,528,732 | 2,040,417 | ||||||||||||||||
| Total assets | $ | 17,037,226 | $ | 14,000,922 | ||||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Interest-bearing demand | $ | 5,235,126 | 11,009 | 0.42 | $ | 3,669,649 | 10,843 | 0.60 | ||||||||||
| Savings | 967,164 | 661 | 0.14 | 793,655 | 593 | 0.15 | ||||||||||||
| Time | 3,905,863 | 23,433 | 1.21 | 3,468,520 | 29,290 | 1.70 | ||||||||||||
| Other short-term borrowings | 684,218 | 4,301 | 1.26 | 707,588 | 3,734 | 1.06 | ||||||||||||
| FHLB borrowings | 1,033,794 | 6,417 | 1.25 | 1,108,100 | 21,221 | 3.86 | ||||||||||||
| Long-term debt | 680,107 | 17,182 | 5.08 | 695,522 | 17,969 | 5.21 | ||||||||||||
| Total interest-bearing liabilities | 12,506,272 | 63,003 | 1.01 | 10,443,034 | 83,650 | 1.62 | ||||||||||||
| Demand deposits | 1,804,764 | 1,360,757 | ||||||||||||||||
| Other liabilities | 283,402 | 205,107 | ||||||||||||||||
| Total liabilities | 14,594,438 | 12,008,898 | ||||||||||||||||
| Equity | 2,442,788 | 1,992,024 | ||||||||||||||||
|
Total liabilities & shareholders' equity |
$ | 17,037,226 | $ | 14,000,922 | ||||||||||||||
| Net interest income / yield on | ||||||||||||||||||
| average earning assets | $ | 294,253 | 4.03 | $ | 218,352 | 3.62 | ||||||||||||
|
1. |
Average loan balances include non accrual loans. |
|
|
2. |
Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal 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. |
|
|
|
|
Susquehanna Bancshares, Inc. |
||||||||||||||||
|
26 North Cedar Street |
||||||||||||||||
|
Lititz, PA 17543 |
||||||||||||||||
| Loans and Leases | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Total Loans and Leases | ||||||||||||||||
| 06/30/12 | 12/31/11 | 06/30/11 | ||||||||||||||
| Commercial, financial, and agricultural | $ | 2,101,561 | $ | 1,871,027 | $ | 1,793,490 | ||||||||||
| Real estate - construction | 936,996 | 829,221 | 775,096 | |||||||||||||
| Real estate secured - residential | 3,970,115 | 3,212,562 | 2,704,802 | |||||||||||||
| Real estate secured - commercial | 4,034,109 | 3,136,887 | 2,999,986 | |||||||||||||
| Consumer | 805,490 | 722,329 | 665,602 | |||||||||||||
| Leases | 737,641 | 675,904 | 697,211 | |||||||||||||
| Total loans and leases | $ | 12,585,912 | $ | 10,447,930 | $ | 9,636,187 | ||||||||||
| Nonaccrual Loans and Leases | ||||||||||||||||
| 06/30/12 | 03/31/12 | 12/31/11 | 09/30/11 | 06/30/11 | ||||||||||||
| Commercial, financial, and agricultural | $ | 16,076 | $ | 20,616 | $ | 14,385 | $ | 14,421 | $ | 18,219 | ||||||
| Real estate - construction | 25,985 | 30,644 | 37,727 | 37,487 | 44,305 | |||||||||||
| Real estate secured - residential | 31,723 | 33,137 | 41,922 | 41,238 | 51,047 | |||||||||||
| Real estate secured - commercial | 52,296 | 47,423 | 61,497 | 65,377 | 73,346 | |||||||||||
| Consumer | 263 | 505 | 0 | 0 | 0 | |||||||||||
| Leases | 907 | 1,164 | 947 | 1,576 | 3,816 | |||||||||||
| Total nonaccrual loans and leases | $ | 127,250 | $ | 133,489 | $ | 156,478 | $ | 160,099 | $ | 190,733 | ||||||
| Restructured Loans | ||||||||||||||||
| 06/30/12 | 03/31/12 | 12/31/11 | 09/30/11 | 06/30/11 | ||||||||||||
| Commercial, financial, and agricultural | $ | 9,130 | $ | 9,547 | $ | 12,181 | $ | 11,820 | $ | 14,387 | ||||||
| Real estate - construction | 3,979 | 3,980 | 3,902 | 0 | 0 | |||||||||||
| Real estate secured - residential | 16,494 | 15,167 | 17,634 | 13,389 | 12,734 | |||||||||||
| Real estate secured - commercial | 36,671 | 42,883 | 38,565 | 36,974 | 34,874 | |||||||||||
| Consumer | 503 | 504 | 570 | 148 | 148 | |||||||||||
| Total restructured loans | $ | 66,777 | $ | 72,081 | $ | 72,852 | $ | 62,331 | $ | 62,143 | ||||||
| Net Charge-offs (Recoveries) | ||||||||||||||||
| 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | 2Q 2011 | ||||||||||||
| Commercial, financial, and agricultural | $ | 7,145 | $ | 2,108 | $ | 1,557 | $ | 5,322 | $ | 9,138 | ||||||
| Real estate - construction | 4,987 | 2,830 | 8,484 | 6,489 | 6,352 | |||||||||||
| Real estate secured - residential | 2,553 | 3,652 | 2,641 | 5,262 | 5,042 | |||||||||||
| Real estate secured - commercial | 4,485 | 2,271 | 10,897 | 5,612 | 10,467 | |||||||||||
| Consumer | 53 | 928 | 503 | (99 | ) | 67 | ||||||||||
| Leases | 879 | 581 | 778 | 746 | 875 | |||||||||||
| Total net charge-offs | $ | 20,102 | $ | 12,370 | $ | 24,860 | $ | 23,332 | $ | 31,941 | ||||||