Taylor Capital Reports Fourth Quarter and Full Year Results
Reduction in Nonperforming Loans, Increased Revenue, Launches Residential Mortgage Business
ROSEMONT, Ill., Jan. 27 /PRNewswire-FirstCall/ -- Taylor Capital Group, Inc. (the “Company”) (Nasdaq: TAYC), the parent company of Cole Taylor Bank (the “Bank”), today reported results for the fourth quarter of 2009 and the year ended December 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060605/CGM055LOGO)
For the three months ended December 31, 2009, the Company reported a net loss applicable to common stockholders of $5.9 million, or $0.56 per diluted common share, compared to a net loss applicable to common stockholders of $5.3 million, or $0.51 per diluted share common share, for the third quarter of 2009.
For the year ended December 31, 2009, the Company reported a net loss applicable to common stockholders of $43.0 million, or $4.10 per diluted common share, compared to a net loss applicable to common stockholders of $143.4 million, or $13.72 per diluted common share, for the year ended December 31, 2008.
Financial Highlights
- Total revenue (net interest income plus noninterest income excluding securities gains or losses) for the fourth quarter of 2009 was $36.6 million, up from $35.4 million for the third quarter of 2009. For the full year 2009, the Company’s total revenue was $138.9 million as compared with $107.2 million for 2008.
- Net interest income for the fourth quarter rose to $32.8 million, up from $32.4 million in the third quarter. The Company’s net interest margin for the fourth quarter was 3.10%, up from 2.92% for the third quarter. Net interest income for the full year 2009 totaled $122.9 million as compared with $92.4 million for 2008. The net interest margin for the year ended December 31, 2009 was 2.84%, up from 2.55% in 2008.
- In-market deposits totaled $2.4 billion at December 31, 2009, up $393.3 million from $2.0 billion at December 31, 2008. Out-of-market deposits declined to $570.4 million at year end 2009, down 49% from the December 31, 2008, total of $1.12 billion. As a percent of total deposits, in-market deposits represented 81% of year end 2009 deposits, up from 64% at December 31, 2008.
- The Company’s asset quality indicators continued to show improvement:
- Nonperforming loans declined to $141.5 million at year end, down $34.6 million, or 20%, from the $176.0 million reported at September 30, 2009, and down $58.9 million, or 29%, from $200.4 million balance on December 31, 2008.
- Nonperforming assets were $167.7 million at December 31, 2009, down $28.6 million from the $196.3 million reported at September 30, 2009, and down $45.9 million from the December 31, 2008 total of $213.6 million.
- The allowance for loan losses as a percent of total loans increased to 3.50% at year end, up from 3.44% at September 30, 2009, but down from 3.98% at December 31, 2008.
- The allowance for loan losses as a percent of nonperforming loans rose to 75.06% at December 31, 2009, up from 60.86% at September 30, 2009, and up from 64.15% at December 31, 2008.
- The fourth quarter provision for loan losses rose to $19.0 million, up from $15.5 million for the third quarter of 2009. For the full year 2009, the loan loss provision was $89.6 million, down $54.5 million from the 2008 full year total of $144.2 million.
- The Company’s capital ratios remain substantially above all regulatory requirements for well-capitalized banks.
“In the face of the most challenging period for our industry in two generations, our Company has gone through a remarkable transformation,” said Taylor Capital Group Chairman Bruce W. Taylor. “The effects of the changes that we have made, and the efforts of our staff, have been clearly positive in 2009. As a result, we enter 2010 with a solid platform for growth.”
“I’m encouraged by many aspects of our 2009 performance, but disappointed with the high levels of loan loss provisions which led to a loss for the year,” said Mark A. Hoppe, President and Chief Executive Officer of Cole Taylor Bank. “Total revenue increased every quarter of this past year. Our service charge and fee income is up as a direct result of the growth in new commercial banking clients over the past two years. Our focus on expense control is paying off, and we expect that the addition of our new residential mortgage origination unit will serve to increase fee income and contribute to the Company’s growth. We’ve also seen a continuation of positive trends in asset quality, including reductions in nonperforming loans. While there are positive signs that the economy is improving, we expect continued market challenges for the coming year. We remain confident that our strategy of becoming a leader in Chicago area business banking is still the right one for our organization and we will continue to execute against that strategy.”
Revenue
For the fourth quarter of 2009, the Company’s net interest income increased to $32.8 million, up from $32.4 million reported for the third quarter of 2009. For the year ended December 31, 2009, net interest income was $122.9 million, up 33% from $92.4 million reported for the year ended December 31, 2008.
The tax equivalent net interest margin was 3.10% for the fourth quarter of 2009, up from 2.92% in the third quarter of 2009. For the full year 2009, the net interest margin was 2.84%, up from 2.55% for 2008. While the Company’s yield on earning assets declined during the year, that decline was more than offset by a lower cost of funds as the Company increased its noninterest bearing deposits (primarily commercial relationship demand deposits) and decreased its balances of brokered and other out-of-market deposits.
Noninterest income for the fourth quarter of 2009 totaled $12.7 million, up from $3.4 million in the prior quarter, primarily attributable to an $8.6 million increase in gains on sales of investment securities in the fourth quarter. For the year ended December 31, 2009, noninterest income totaled $33.6 million, up from $12.4 million for the year ended December 31, 2008. The full year increase was due to $17.6 million in securities gains in 2009 as compared with securities losses of $2.4 million for 2008 as the Company repositioned its balance sheet and took advantage of changes in the rate environment. Service charge income increased from $9.1 million in full year 2008 to $11.3 million for full year 2009, primarily due to increased commercial account activity. For 2009, the Company recorded a $2.0 million loss on mortgage banking activities as a result of losses on hedges placed on single-family mortgages held for sale.
Expense
Noninterest expense totaled $30.2 million for the fourth quarter of 2009 as compared to $22.5 million for the third quarter of 2009. The higher level of noninterest expense was primarily attributable to a $6.2 million rise in non-performing asset expense which was caused by additional write-downs on loans held for sale and other loan-related assets. For the year ended December 31, 2009, noninterest expense totaled $97.6 million, up from $93.4 million for the twelve months ended December 31, 2008. The 2009 increase in noninterest expense was limited to $4.2 million despite increases of $7.7 million in FDIC assessments and $8.2 million in non-performing asset expenses and related legal fees.
Balance Sheet
At December 31, 2009, the Company’s assets totaled $4.4 billion, as compared with $4.5 billion at September 30, 2009 and $4.4 billion at December 31, 2008.
In 2009, the Company continued to reposition its loan portfolio. Total loans at December 31, 2009, declined to $2.9 billion from $3.0 billion at September 30, 2009 and $3.1 billion at December 31, 2008. As the result of ongoing new business development efforts, the Company added over 200 new commercial client relationships and funded $654 million in new loans in 2009. That growth was offset as the Company reduced its exposure in industries and sectors it no longer considered economically desirable. The loan portfolio also declined as a result of charge–offs and the historically low line usage by its customers, the result of continued ongoing difficult economic conditions. Loans held for sale at December 31, 2009, totaled $81.9 million, down from $102.8 million at September 30, 2009, with the reduction primarily due to loan sales and additional write-downs during the quarter.
At December 31, 2009, the Company’s total deposits were $3.0 billion, down from $3.1 billion at both September 30, 2009 and December 31, 2008. For the fourth quarter of 2009, average noninterest bearing deposits (primarily commercial demand deposits) rose $193.9 million, or 43%, from the fourth quarter of 2008. Average in-market deposits increased by $336.8 million, or 17%, from the fourth quarter of 2008 to the fourth quarter of 2009. The Company’s ongoing efforts to reduce its reliance on out-of-market and brokered deposits resulted in a decline in average out-of-market deposits of $561.1 million, or 46%, from the fourth quarter of 2008 to the fourth quarter of 2009.
Credit Quality
At December 31, 2009, total non-performing assets decreased to $167.7 million from the $196.3 million reported at September 30, 2009, and down from the December 31, 2008, total of $213.6 million.
Nonaccrual loans decreased to $141.4 million at December 31, 2009, from $163.8 million at September 30, 2009, and down from $200.2 million at December 31, 2008. The reduction in nonaccrual loans in both the fourth quarter and full year 2009 primarily resulted from declines in commercial and industrial nonaccruals as well as residential construction and land nonaccruals. These declines were attributable to a combination of repayments, charge-offs and transfers to other real estate owned along with reduced levels of loans moving to nonaccrual status. Loans past due 90 days or more but still accruing interest declined to $59,000 at December 31, 2009, down from $12.2 million at September 30, 2009, and $153,000 at December 31, 2008. The September 30, 2009, amount was largely the result of one large commercial loan that was past due at that date. Other real estate owned rose to $26.2 million at December 31, 2009, up from $20.3 million at the end of the third quarter 2009 and up from $13.2 million at year end 2008. Loans contractually past due 30 through 89 days at December 31, 2009 were $13.2 million, down from $18.3 million at September 30, 2009 and $25.3 million at December 31, 2008.
The provision for loan losses for the fourth quarter of 2009 was $19.0 million, up from $15.5 million recorded for the third quarter of 2009. For the full year 2009, the provision for loan losses was $89.6 million, down from $144.2 million for 2008.
The allowance for loan losses was $106.2 million at December 31, 2009, compared to $107.1 million at September 30, 2009 and $128.5 million at December 31, 2008. As a percent of loans, the allowance increased to 3.50% at December 31, 2009, up from 3.44% at September 30, 2009, but down from 3.98% at December 31, 2008. As a percent of nonperforming loans, the allowance was 75.06% at December 31, 2009, up from 60.86% at September 30, 2009 and 64.15% at December 31, 2008.
Capital
At December 31, 2009, the Company’s Tier I Risk Based Capital ratio was 9.79%, while its Total Risk Based Capital ratio was 12.72%. Both ratios substantially exceed all regulatory requirements for well-capitalized banks, which are 6.00% for Tier I Risk Based Capital and 10.00% for Total Risk Based Capital. The Company’s Tier I Capital to Average Assets leverage ratio at December 31, 2009 was 7.60%.
About Taylor Capital Group, Inc. (NASDAQ: TAYC)
Taylor Capital Group, Inc. is a $4.4 billion bank holding company for Cole Taylor Bank, a Chicago-based commercial bank specializing in serving the banking needs of closely held businesses and the people who own and manage them. Cole Taylor is a member of the FDIC and an Equal Housing Lender.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," “might”, “plan”, “prudent”, “potential”, “should”, "will," "expect," "anticipate," "believe," "intend," "could" and "estimate" and similar expressions. These forward-looking statements are based on information currently available to us and are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities in 2010 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation: the effect on our profitability if interest rates fluctuate as well as the effect of our customers’ changing use of our deposit products; the possibility that our wholesale funding sources may prove insufficient to replace deposits at maturity and support our growth; the risk that our allowance for loan losses may prove insufficient to absorb probable losses in our loan portfolio; possible volatility in loan charge-offs and recoveries between periods; the decline in residential real estate sales volume and the likely potential for continuing illiquidity in the real estate market, including within the Chicago metropolitan area; the risks associated with the high concentration of commercial real estate loans in our portfolio; the uncertainties in estimating the fair value of developed real estate and undeveloped land in light of declining demand for such assets and continuing illiquidity in the real estate market; the risks associated with management changes, employee turnover and our commercial banking growth initiative, including our expansion of our asset-based lending operations and our entry into new geographical markets; negative developments and disruptions in the credit and lending markets, including the impact of the ongoing credit crisis on our business and on the businesses of our customers as well as other banks and lending institutions with which we have commercial relationships; a continuation of the recent unprecedented volatility in the capital markets; the effectiveness of our hedging transactions and their impact on our future results of operations; the risks associated with implementing our business strategy and managing our growth effectively, including our ability to preserve and access sufficient capital to execute on our strategy; changes in general economic and capital market conditions, interest rates, our debt credit ratings, deposit flows, loan demand, including loan syndication opportunities and competition; changes in legislation or regulatory and accounting principles, policies or guidelines affecting our business; and other economic, competitive, governmental, regulatory and technological factors impacting our operations.
For further information about these and other risks, uncertainties and factors, please review the disclosure included in the section captioned "Risk Factors” in our December 31, 2008 Annual Report on Form 10-K filed with the SEC on March 11, 2009. You should not place undue reliance on any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements or risk factors, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release.
TAYLOR CAPITAL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
||||||
(Unaudited) Dec. 31, 2009 |
(Unaudited) Sept. 30, 2009 |
Dec. 31, 2008 |
||||
ASSETS |
||||||
Cash and cash equivalents |
$48,469 |
$47,533 |
$53,012 |
|||
Investment securities |
1,271,271 |
1,306,098 |
1,094,594 |
|||
Loans held for sale, at lower of cost or market |
81,853 |
102,765 |
-- |
|||
Loans, net of allowance for loan losses of $106,185, $107,132 and $128,548 at December 31, 2009, September 30, 2009 and December 31, 2008, respectively |
2,847,290 |
2,904,357 |
3,104,713 |
|||
Premises, leasehold improvements and equipment, net |
15,515 |
15,742 |
17,124 |
|||
Investment in Federal Home Loan Bank and Federal Reserve Bank stock |
31,210 |
35,741 |
29,630 |
|||
Other real estate and repossessed assets, net |
26,231 |
20,313 |
13,179 |
|||
Other assets |
81,663 |
52,532 |
76,637 |
|||
Total assets |
$4,403,502 |
$4,485,081 |
$4,388,889 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Deposits: |
||||||
Noninterest-bearing |
$659,146 |
$615,590 |
$470,990 |
|||
Interest-bearing |
2,317,654 |
2,437,139 |
2,660,056 |
|||
Total deposits |
2,976,800 |
3,052,729 |
3,131,046 |
|||
Other borrowings |
337,669 |
327,692 |
275,560 |
|||
Accrued interest, taxes and other liabilities |
60,925 |
56,440 |
71,286 |
|||
Notes payable and other advances |
627,000 |
617,000 |
462,000 |
|||
Junior subordinated debentures |
86,607 |
86,607 |
86,607 |
|||
Subordinated notes, net |
55,695 |
55,593 |
55,303 |
|||
Total liabilities |
4,144,696 |
4,196,061 |
4,081,802 |
|||
Stockholders' equity: |
||||||
Preferred stock, Series A |
60,000 |
60,000 |
60,000 |
|||
Preferred stock, Series B |
98,844 |
98,474 |
97,314 |
|||
Common stock |
120 |
120 |
121 |
|||
Surplus |
226,398 |
225,951 |
224,872 |
|||
Accumulated deficit |
(110,617) |
(104,708) |
(69,294) |
|||
Accumulated other comprehensive income, net |
8,697 |
33,819 |
18,710 |
|||
Treasury stock |
(24,636) |
(24,636) |
(24,636) |
|||
Total stockholders' equity |
258,806 |
289,020 |
307,087 |
|||
Total liabilities and stockholders' equity |
$4,403,502 |
$4,485,081 |
$4,388,889 |
|||
TAYLOR CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
|||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
||||||||||
Dec. 31, 2009 |
Sept. 30, 2009 |
Dec. 31, 2008 |
Dec. 31, 2009 |
Dec. 31, 2008 |
|||||||
Interest income: |
|||||||||||
Interest and fees on loans |
$40,180 |
$40,749 |
$41,517 |
$159,848 |
$158,564 |
||||||
Interest and dividends on investment securities: |
|||||||||||
Taxable |
12,515 |
13,921 |
11,614 |
54,694 |
38,633 |
||||||
Tax-exempt |
1,265 |
1,360 |
1,443 |
5,468 |
5,830 |
||||||
Interest on cash equivalents |
5 |
3 |
50 |
20 |
1,421 |
||||||
Total interest income |
53,965 |
56,033 |
54,624 |
220,030 |
204,448 |
||||||
Interest expense: |
|||||||||||
Deposits |
14,253 |
16,629 |
23,244 |
69,164 |
88,279 |
||||||
Other borrowings |
2,226 |
2,210 |
2,194 |
8,844 |
9,648 |
||||||
Notes payable and other advances |
1,601 |
1,718 |
1,466 |
6,557 |
5,511 |
||||||
Junior subordinated debentures |
1,448 |
1,477 |
1,693 |
6,066 |
7,013 |
||||||
Subordinated notes |
1,627 |
1,624 |
1,613 |
6,488 |
1,646 |
||||||
Total interest expense |
21,155 |
23,658 |
30,210 |
97,119 |
112,097 |
||||||
Net interest income |
32,810 |
32,375 |
24,414 |
122,911 |
92,351 |
||||||
Provision for loan losses |
19,002 |
15,539 |
30,353 |
89,611 |
144,158 |
||||||
Net interest income (loss) after provision for loan losses |
13,808 |
16,836 |
(5,939) |
33,300 |
(51,807) |
||||||
Noninterest income: |
|||||||||||
Service charges |
2,825 |
2,892 |
2,459 |
11,306 |
9,136 |
||||||
Trust and investment management fees |
356 |
332 |
842 |
1,697 |
3,578 |
||||||
Mortgage banking activities |
(656) |
(1,351) |
-- |
(1,961) |
23 |
||||||
Gain (loss) on investment securities |
8,958 |
378 |
(2,399) |
17,595 |
(2,399) |
||||||
Other derivative income |
19 |
108 |
830 |
1,399 |
1,936 |
||||||
Other noninterest income |
1,233 |
1,017 |
(647) |
3,555 |
163 |
||||||
Total noninterest income |
12,735 |
3,376 |
1,085 |
33,591 |
12,437 |
||||||
Noninterest expense: |
|||||||||||
Salaries and employee benefits |
10,938 |
10,440 |
10,108 |
42,914 |
47,855 |
||||||
Occupancy of premises |
2,067 |
2,017 |
2,039 |
8,146 |
7,812 |
||||||
Furniture and equipment |
605 |
531 |
596 |
2,230 |
3,094 |
||||||
Non–performing asset expense |
8,453 |
2,295 |
(166) |
11,726 |
4,711 |
||||||
FDIC assessment |
2,167 |
2,314 |
796 |
10,380 |
2,687 |
||||||
Legal fees, net |
1,736 |
1,430 |
1,821 |
5,961 |
5,016 |
||||||
Early extinguishment of debt |
-- |
-- |
894 |
527 |
2,500 |
||||||
Other noninterest expense |
4,253 |
3,489 |
5,542 |
15,723 |
19,695 |
||||||
Total noninterest expense |
30,219 |
22,516 |
21,630 |
97,607 |
93,370 |
||||||
Loss before income taxes |
(3,676) |
(2,304) |
(26,484) |
(30,716) |
(132,740) |
||||||
Income tax expense (benefit) |
(647) |
144 |
(11,648) |
834 |
(8,212) |
||||||
Net loss |
(3,029) |
(2,448) |
(14,836) |
(31,550) |
(124,528) |
||||||
Preferred dividends and discounts |
(2,880) |
(2,873) |
(2,150) |
(11,483) |
(2,150) |
||||||
Implied non-cash preferred dividend |
-- |
-- |
-- |
-- |
(16,680) |
||||||
Net loss applicable to common stockholders |
$(5,909) |
$(5,321) |
$(16,986) |
$(43,033) |
$(143,358) |
||||||
Basic loss per common share |
$(0.56) |
$(0.51) |
$(1.62) |
$(4.10) |
$(13.72) |
||||||
Diluted loss per common share |
(0.56) |
(0.51) |
(1.62) |
(4.10) |
(13.72) |
||||||
TAYLOR CAPITAL GROUP, INC. COMPOSITION OF LOAN PORTFOLIO (unaudited) (dollars in thousands) The following table presents the composition of the Company's loan portfolio as of the dates indicated: |
|||||||||||||
December 31, 2009 |
September 30, 2009 |
December 31, 2008 |
|||||||||||
Loans: |
Balance |
Percent of Gross Loans |
Balance |
Percent of Gross Loans |
Balance |
Percent of Gross Loans |
|||||||
Commercial and industrial |
$1,264,369 |
42.8% |
$1,292,091 |
42.9% |
$1,485,673 |
45.9% |
|||||||
Commercial real estate secured |
1,171,777 |
39.7 |
1,156,114 |
38.4 |
1,058,930 |
32.8 |
|||||||
Residential construction & land |
221,859 |
7.5 |
247,386 |
8.2 |
349,998 |
10.8 |
|||||||
Commercial construction & land |
142,584 |
4.8 |
160,534 |
5.3 |
181,454 |
5.6 |
|||||||
Total commercial loans |
2,800,589 |
94.8 |
2,856,125 |
94.8 |
3,076,055 |
95.1 |
|||||||
Consumer-oriented loans |
152,892 |
5.2 |
155,372 |
5.2 |
157,222 |
4.9 |
|||||||
Gross loans |
2,953,481 |
100.0% |
3,011,497 |
100.0% |
3,233,277 |
100.0% |
|||||||
Less: Unearned discount |
(6) |
(8) |
(16) |
||||||||||
Total loans |
2,953,475 |
3,011,489 |
3,233,261 |
||||||||||
Less: Loan loss allowance |
(106,185) |
(107,132) |
(128,548) |
||||||||||
Net loans |
$2,847,290 |
$2,904,357 |
$3,104,713 |
||||||||||
Loans Held for Sale |
$81,853 |
$102,765 |
-- |
||||||||||
The following tables provide details of the Company's commercial real estate and residential construction and land portfolios: |
||||||||||||||||||||
December 31, 2009 |
September 30, 2009 |
December 31, 2008 |
||||||||||||||||||
Commercial real estate secured: |
Balance |
Percent of Total |
Balance |
Percent of Total |
Balance |
Percent of Total |
||||||||||||||
Commercial non-owner occupied: |
||||||||||||||||||||
Retail strip centers or malls |
$211,817 |
18.1% |
$212,011 |
18.3% |
$206,637 |
19.5% |
||||||||||||||
Office/mixed use property |
149,951 |
12.8 |
153,333 |
13.3 |
145,978 |
13.8 |
||||||||||||||
Commercial properties |
144,745 |
12.3 |
134,785 |
11.7 |
130,227 |
12.3 |
||||||||||||||
Specialized – other |
121,530 |
10.4 |
121,983 |
10.6 |
92,193 |
8.7 |
||||||||||||||
Other commercial properties |
64,602 |
5.5 |
70,670 |
6.1 |
61,478 |
5.8 |
||||||||||||||
Commercial non-owner occupied |
692,645 |
59.1 |
692,782 |
60.0 |
636,513 |
60.1 |
||||||||||||||
Commercial owner-occupied |
334,744 |
28.6 |
316,124 |
27.3 |
270,346 |
25.5 |
||||||||||||||
Multi-family properties |
144,388 |
12.3 |
147,208 |
12.7 |
152,071 |
14.4 |
||||||||||||||
Total commercial real estate secured |
$1,171,777 |
100.0% |
$1,156,114 |
100.0% |
$1,058,930 |
100.0% |
||||||||||||||
Residential construction & land: |
||||||||||||||||||||
Residential construction |
$173,432 |
78.2% |
$189,361 |
76.5% |
$275,556 |
78.7% |
||||||||||||||
Land |
48,427 |
21.8 |
58,025 |
23.5 |
74,442 |
21.3 |
||||||||||||||
Total residential construction and land |
$221,859 |
100.0% |
$247,386 |
100.0% |
$349,998 |
100.0% |
||||||||||||||
TAYLOR CAPITAL GROUP, INC. CREDIT QUALITY (unaudited) (dollars in thousands) |
||||||||
At or for the Three Months Ended |
||||||||
Dec. 31, 2009 |
Sept. 30, 2009 |
Dec. 31, 2008 |
||||||
Nonperforming Assets: |
||||||||
Loans contractually past due 90 days or more but still accruing interest |
$59 |
$12,190 |
$153 |
|||||
Nonaccrual loans: |
||||||||
Commercial and industrial |
26,687 |
31,191 |
42,263 |
|||||
Commercial real estate secured |
36,420 |
36,824 |
23,068 |
|||||
Residential construction and land |
62,795 |
78,224 |
114,160 |
|||||
Commercial construction and land |
4,245 |
7,854 |
14,934 |
|||||
All other loan types |
11,256 |
9,737 |
5,802 |
|||||
Total nonaccrual loans |
141,403 |
163,830 |
200,227 |
|||||
Total nonperforming loans |
141,462 |
176,020 |
200,380 |
|||||
Other real estate owned and repossessed assets |
26,231 |
20,313 |
13,179 |
|||||
Total nonperforming assets |
$167,693 |
$196,333 |
$213,559 |
|||||
Other Credit Quality Information: |
||||||||
Loans contractually past due 30 through 89 days and still accruing |
$13,206 |
$18,339 |
$25,272 |
|||||
Restructured loans not included in nonperforming assets |
1,196 |
4,825 |
-- |
|||||
Recorded balance of impaired loans |
141,697 |
162,986 |
206,705 |
|||||
Allowance for loan losses related to impaired loans |
33,640 |
35,453 |
41,451 |
|||||
Allowance for Loan Losses Summary: |
||||||||
Allowance at beginning of period |
$107,132 |
$132,927 |
$117,967 |
|||||
Net (charge-offs) recoveries: |
||||||||
Commercial and commercial real estate |
(7,983) |
(14,091) |
(357) |
|||||
Real estate – construction and land |
(10,384) |
(27,091) |
(19,050) |
|||||
Total consumer-oriented loans |
(1,582) |
(152) |
(365) |
|||||
Total net charge-offs |
(19,949) |
(41,334) |
(19,772) |
|||||
Provision for loan losses |
19,002 |
15,539 |
30,353 |
|||||
Allowance at end of period |
$106,185 |
$107,132 |
$128,548 |
|||||
Key Credit Ratios: |
||||||||
Nonperforming loans to total loans |
4.66% |
5.65% |
6.20% |
|||||
Nonperforming assets to total loans plus repossessed property |
5.48% |
6.26% |
6.58% |
|||||
Nonperforming assets to total assets |
3.81% |
4.38% |
4.87% |
|||||
Annualized net charge-offs to average total loans |
2.59% |
5.20% |
2.47% |
|||||
Allowance to total loans at end of period |
3.50% |
3.44% |
3.98% |
|||||
Allowance to nonperforming loans |
75.06% |
60.86% |
64.15% |
|||||
30 – 89 days past due to total loans |
0.44% |
0.58% |
0.78% |
|||||
TAYLOR CAPITAL GROUP, INC. FUNDING LIABILITIES (unaudited) (dollars in thousands) The following table presents the distribution of the Company's average deposit account balances for the periods indicated: |
|||||||||||||
For the Quarter Ended |
|||||||||||||
December 31, 2009 |
September 30, 2009 |
December 31, 2008 |
|||||||||||
Average Balance |
Percent of Deposits |
Average Balance |
Percent of Deposits |
Average Balance |
Percent of Deposits |
||||||||
In-market deposits: |
|||||||||||||
Noninterest-bearing deposits |
$640,590 |
21.5% |
$598,760 |
19.2% |
$446,693 |
14.0% |
|||||||
NOW accounts |
224,787 |
7.5 |
223,386 |
7.2 |
215,449 |
6.7 |
|||||||
Savings deposits |
41,198 |
1.4 |
41,839 |
1.3 |
42,459 |
1.3 |
|||||||
Money market accounts |
451,953 |
15.2 |
407,298 |
13.0 |
339,518 |
10.6 |
|||||||
Customer certificates of deposit |
768,733 |
25.8 |
826,911 |
26.4 |
863,775 |
27.0 |
|||||||
CDARS time deposits |
132,231 |
4.4 |
154,979 |
5.0 |
4,229 |
0.1 |
|||||||
Public time deposits |
73,916 |
2.5 |
76,625 |
2.4 |
84,532 |
2.6 |
|||||||
Total in-market deposits |
2,333,408 |
78.3 |
2,329,798 |
74.5 |
1,996,655 |
62.3 |
|||||||
Out-of-market deposits: |
|||||||||||||
Brokered money market deposits |
8,601 |
0.3 |
9,390 |
0.3 |
86,958 |
2.7 |
|||||||
Out-of-local-market certificates of deposit |
89,480 |
3.0 |
99,665 |
3.2 |
145,679 |
4.5 |
|||||||
Brokered certificates of deposit |
549,588 |
18.4 |
686,868 |
22.0 |
976,104 |
30.5 |
|||||||
Total out-of-market deposits |
647,669 |
21.7 |
795,923 |
25.5 |
1,208,741 |
37.7 |
|||||||
Total deposits |
$2,981,077 |
100.0% |
$3,125,721 |
100.0% |
$3,205,396 |
100.0% |
|||||||
The following table sets forth the period end balances of total deposits as of each of the dates indicated below, as well as categorizes the Company's deposits as "in-market" and "out-of-market" deposits: |
||||||||||
Dec. 31, 2009 |
Sept. 30, 2009 |
Dec. 31, 2008 |
||||||||
In-market deposits: |
||||||||||
Noninterest-bearing deposits |
$659,146 |
$615,590 |
$470,990 |
|||||||
NOW accounts |
307,025 |
213,668 |
218,451 |
|||||||
Savings accounts |
41,479 |
41,534 |
42,275 |
|||||||
Money market accounts |
438,080 |
456,795 |
320,691 |
|||||||
Customer certificates of deposit |
775,663 |
774,082 |
870,183 |
|||||||
CDARS time deposits |
116,256 |
145,889 |
5,670 |
|||||||
Public time deposits |
68,763 |
78,090 |
84,831 |
|||||||
Total in-market deposits |
2,406,412 |
2,325,648 |
2,013,091 |
|||||||
Out-of-market deposits: |
||||||||||
Brokered money market deposits |
7,338 |
9,052 |
73,352 |
|||||||
Out-of-local-market certificates of deposit |
79,015 |
95,990 |
136,470 |
|||||||
Brokered certificates of deposit |
484,035 |
622,039 |
908,133 |
|||||||
Total out-of-market deposits |
570,388 |
727,081 |
1,117,955 |
|||||||
Total deposits |
$2,976,800 |
$3,052,729 |
$3,131,046 |
|||||||
Taylor Capital Group, Inc. |
|||||||||||||||
Summary of Key Financial Data |
|||||||||||||||
Dollars in Thousands |
|||||||||||||||
Unaudited |
|||||||||||||||
2009 |
2008 |
Year To Date |
|||||||||||||
Fourth |
Third |
Second |
First |
Fourth |
Dec. 31, |
||||||||||
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
2009 |
2008 |
|||||||||
Condensed Income Data: |
|||||||||||||||
Net interest income |
$ 32,810 |
$ 32,375 |
$ 30,380 |
$ 27,346 |
$ 24,414 |
$ 122,911 |
$ 92,351 |
||||||||
Provision for loan losses |
19,002 |
15,539 |
39,507 |
15,563 |
30,353 |
89,611 |
144,158 |
||||||||
Total noninterest income |
12,735 |
3,376 |
12,137 |
5,343 |
1,085 |
33,591 |
12,437 |
||||||||
Total noninterest expense |
30,219 |
22,516 |
23,707 |
21,165 |
21,630 |
97,607 |
93,370 |
||||||||
Loss before income taxes |
(3,676) |
(2,304) |
(20,697) |
(4,039) |
(26,484) |
(30,716) |
(132,740) |
||||||||
Income tax expense (benefit) |
(647) |
144 |
2,558 |
(1,221) |
(11,648) |
834 |
(8,212) |
||||||||
Net loss |
(3,029) |
(2,448) |
(23,255) |
(2,818) |
(14,836) |
(31,550) |
(124,528) |
||||||||
Preferred dividends and discounts |
(2,880) |
(2,873) |
(2,868) |
(2,862) |
(2,150) |
(11,483) |
(18,830) |
||||||||
Net loss applicable to common shareholders |
$ (5,909) |
$ (5,321) |
$ (26,123) |
$ (5,680) |
$ (16,986) |
$ (43,033) |
$ (143,358) |
||||||||
Per Share Data: |
|||||||||||||||
Basic loss per common share |
$ (0.56) |
$ (0.51) |
$ (2.49) |
$ (0.54) |
$ (1.62) |
$ (4.10) |
$ (13.72) |
||||||||
Diluted loss per common share |
(0.56) |
(0.51) |
(2.49) |
(0.54) |
(1.62) |
(4.10) |
(13.72) |
||||||||
Cash dividends per common share |
- |
- |
- |
- |
- |
- |
0.10 |
||||||||
Book value per common share |
9.02 |
11.78 |
10.24 |
13.85 |
13.47 |
- |
13.47 |
||||||||
Weighted average shares-basic |
10,504,027 |
10,502,844 |
10,492,789 |
10,471,516 |
10,458,851 |
10,492,911 |
10,450,177 |
||||||||
Weighted average shares-diluted |
10,504,027 |
10,502,844 |
10,492,789 |
10,471,516 |
10,458,851 |
10,492,911 |
10,450,177 |
||||||||
Shares outstanding-end of period |
11,076,707 |
11,078,011 |
11,081,429 |
11,093,349 |
11,115,936 |
11,076,707 |
11,115,936 |
||||||||
Performance Ratios (annualized): |
|||||||||||||||
Loss on average assets |
-0.28% |
-0.22% |
-2.04% |
-0.25% |
-1.39% |
-0.70% |
-3.27% |
||||||||
Loss on average equity |
-4.19% |
-3.58% |
-30.20% |
-3.69% |
-24.14% |
-10.74% |
-51.01% |
||||||||
Efficiency ratio (1) |
82.59% |
63.65% |
67.89% |
66.09% |
77.53% |
70.27% |
87.11% |
||||||||
Average Balance Sheet Data (2): |
|||||||||||||||
Total assets |
$ 4,390,123 |
$ 4,543,191 |
$ 4,570,534 |
$ 4,434,293 |
$ 4,267,048 |
$ 4,484,575 |
$ 3,810,987 |
||||||||
Investments |
1,220,768 |
1,325,722 |
1,341,763 |
1,150,587 |
1,026,848 |
1,260,083 |
895,361 |
||||||||
Cash equivalents |
1,118 |
2,637 |
527 |
2,473 |
16,224 |
1,688 |
64,025 |
||||||||
Loans |
3,079,862 |
3,180,992 |
3,187,740 |
3,238,537 |
3,203,811 |
3,171,373 |
2,790,723 |
||||||||
Total interest-earning assets |
4,301,748 |
4,509,351 |
4,530,030 |
4,391,597 |
4,246,883 |
4,433,144 |
3,750,109 |
||||||||
Interest-bearing deposits |
2,340,487 |
2,526,961 |
2,580,403 |
2,632,961 |
2,758,703 |
2,519,420 |
2,511,820 |
||||||||
Borrowings |
1,058,628 |
1,074,533 |
1,027,010 |
909,565 |
753,070 |
1,017,999 |
596,215 |
||||||||
Total interest-bearing liabilities |
3,399,115 |
3,601,494 |
3,607,413 |
3,542,526 |
3,511,774 |
3,537,419 |
3,108,035 |
||||||||
Noninterest-bearing deposits |
640,590 |
598,760 |
578,020 |
519,187 |
446,693 |
584,512 |
409,322 |
||||||||
Total stockholders' equity |
289,178 |
273,504 |
307,977 |
305,111 |
245,836 |
293,843 |
244,147 |
||||||||
Tax Equivalent Net Interest Margin: |
|||||||||||||||
Net interest income as stated |
$ 32,810 |
$ 32,375 |
$ 30,380 |
$ 27,346 |
$ 24,414 |
$ 122,911 |
$ 92,351 |
||||||||
Add: Tax equivalent adjust.-investment (3) |
681 |
732 |
763 |
768 |
777 |
2,944 |
3,140 |
||||||||
Tax equivalent adjust.-loans (3) |
29 |
29 |
29 |
29 |
32 |
115 |
126 |
||||||||
Tax equivalent net interest income |
$ 33,520 |
$ 33,136 |
$ 31,172 |
$ 28,143 |
$ 25,223 |
$ 125,970 |
$ 95,617 |
||||||||
Net interest margin without tax adjust. |
3.03% |
2.86% |
2.69% |
2.51% |
2.29% |
2.77% |
2.46% |
||||||||
Net interest margin - tax equivalent (3) |
3.10% |
2.92% |
2.76% |
2.58% |
2.37% |
2.84% |
2.55% |
||||||||
Yield on earning assets without tax adjust. |
4.99% |
4.94% |
4.93% |
5.00% |
5.12% |
4.96% |
5.45% |
||||||||
Yield on earning assets - tax equivalent (3) |
5.05% |
5.01% |
5.00% |
5.07% |
5.20% |
5.03% |
5.54% |
||||||||
Yield on interest-bearing liabilities |
2.47% |
2.61% |
2.82% |
3.09% |
3.42% |
2.75% |
3.61% |
||||||||
Net interest spread - without tax adjust. |
2.52% |
2.34% |
2.11% |
1.91% |
1.70% |
2.21% |
1.84% |
||||||||
Net interest spread - tax equivalent (3) |
2.58% |
2.40% |
2.18% |
1.98% |
1.78% |
2.28% |
1.93% |
||||||||
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||
2009 |
2009 |
2009 |
2009 |
2008 |
||||||||
Condensed Balance Sheet Data: |
||||||||||||
Investment securities |
$ 1,271,271 |
$ 1,306,098 |
$ 1,306,174 |
$ 1,321,605 |
$ 1,094,594 |
|||||||
Loans |
3,035,328 |
3,114,254 |
3,177,739 |
3,214,096 |
3,233,261 |
|||||||
Allowance for loan losses |
106,185 |
107,132 |
132,927 |
130,282 |
128,548 |
|||||||
Total assets |
4,403,502 |
4,485,081 |
4,548,325 |
4,596,701 |
4,388,889 |
|||||||
Total deposits |
2,976,800 |
3,052,729 |
3,204,574 |
3,147,653 |
3,131,046 |
|||||||
Total borrowings |
1,106,971 |
1,086,892 |
974,344 |
1,060,212 |
879,470 |
|||||||
Total stockholders' equity |
258,806 |
289,020 |
271,635 |
311,425 |
307,087 |
|||||||
Asset Quality Ratios: |
||||||||||||
Nonperforming loans |
$ 141,462 |
$ 176,020 |
$ 189,816 |
$ 184,297 |
$ 200,380 |
|||||||
Nonperforming assets |
167,693 |
196,333 |
212,886 |
202,529 |
213,559 |
|||||||
Allowance for loan losses to total loans |
3.50% |
3.44% |
4.18% |
4.05% |
3.98% |
|||||||
Allowance for loan losses to nonperforming loans |
75.06% |
60.86% |
70.03% |
70.69% |
64.15% |
|||||||
Nonperforming assets to total loans plus |
||||||||||||
repossessed property |
5.48% |
6.26% |
6.65% |
6.27% |
6.58% |
|||||||
Capital Ratios (Taylor Capital Group, Inc.): |
||||||||||||
Total Capital (to Risk Weighted Assets) |
12.72% |
12.75% |
12.51% |
12.87% |
13.02% |
|||||||
Tier I Capital (to Risk Weighted Assets). |
9.79% |
9.86% |
9.67% |
10.07% |
10.22% |
|||||||
Leverage (to average assets) |
7.60% |
7.47% |
7.52% |
8.29% |
8.73% |
|||||||
Footnotes: |
||||||||||||
(1) Efficiency ratio is determined by dividing noninterest expense by an amount equal to net interest income plus |
||||||||||||
noninterest income, adjusted for gains or losses from investment securities. |
||||||||||||
(2) Average balances are daily averages. |
||||||||||||
(3) Adjustment reflects tax-exempt interest income on an equivalent before-tax basis assuming a tax rate of 35.0%. |
||||||||||||
SOURCE Taylor Capital Group, Inc.
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