Tristate Capital Reports Second Quarter 2021 EPS of $0.41 on Continued Organic Growth of AUM, Loans, Revenue, Pre-Tax Income and Net Income to New Record Levels
TriState Capital Holdings (TSC) reported a significant increase in its second quarter 2021 financial results, with net income reaching $15.7 million, a rise of 86.1% from the same period last year. The company's assets under management grew to a record $11.51 billion, up 24.4% year-over-year. Net interest income rose to $42.9 million, reflecting 28.2% growth from Q2 2020. Overall revenue hit a record $57.7 million, up 24.1%. The company maintains a strong capital position, with total risk-based capital ratios above regulatory requirements.
- Net income increased by 86.1% to $15.7 million compared to Q2 2020.
- Assets under management reached a record $11.51 billion, up 24.4% year-over-year.
- Net interest income rose to $42.9 million, reflecting a 28.2% increase from the prior-year quarter.
- Total revenue recorded at $57.7 million, an increase of 24.1% year-over-year.
- None.
TriState Capital Holdings, Inc. (Nasdaq: TSC) reported second quarter 2021 financial results including fully organic growth in all of its investment management, private banking and commercial banking businesses, as assets under management (AUM), loans, net interest income, fee income, revenue, pre-tax income and net income reach new record high levels.
The parent company of TriState Capital Bank and Chartwell Investment Partners grew net income available to common shareholders to
The company earned
“TriState Capital’s strong top- and bottom-line performance during the second quarter reflects the value of our premier relationships and the power of our company with more than
SECOND QUARTER 2021 HIGHLIGHTS
-
Chartwell’s investment management business continued its strong performance and grew AUM organically to a record
$11.51 billion , up24.4% from June 30, 2020 and2.7% during the quarter and its fees increased22.1% from the year-ago quarter and5.0% from the linked quarter. -
Chartwell’s retail and institutional distribution capability generated year-to-date net inflows of
$533.0 million , while enhanced profitability supported product development including a new short duration high-grade fixed income fund to complement its Short Duration BB High Yield strategy. -
Return on average common equity expanded to
10.37% , up 375 basis points from the year-ago period and 131 basis points from the linked quarter, as the company continues to productively deploy capital raised in December 2020. -
Net interest income (NII) grew to a record
$42.9 million , up28.2% from the year-ago quarter and11.0% from the linked quarter, on historic loan growth and continued net interest margin (NIM) expansion to1.63% . -
Period-end loans grew organically to a record
$9.28 billion , up29.5% from June 30, 2020 and8.7% , during the quarter. -
Private banking loans primarily collateralized by marketable securities and other liquid assets represented
61.5% of total loans at period end, growing40.6% from June 30, 2020 and13.1% during the quarter, while commercial loans increased by14.9% from June 30, 2020 and2.3% during the quarter. -
The company maintained superior credit quality metrics, with period-end non-performing assets (NPAs), non-performing loans (NPLs), and adverse-rated credits declining by
46.0% ,50.8% and33.0% , respectively, from March 31, 2021.
REVENUE GROWTH
NII grew to a record
Non-interest income grew to a record
NII and non-interest income, excluding net gains and losses on the sale of debt securities, combined to generate record total revenue of
EXPENSES IN LINE WITH EXPECTATIONS
TriState Capital continues to invest in talent, technology, products and risk and compliance management to support the continued responsible growth of its businesses and balance sheet, to provide a premier client experience, and to scale its efficient branchless operating model.
Second quarter 2021 non-interest expense of
Operating expenses continue to be favorably impacted by what are expected to be sustainable reductions in annual Federal Deposit Insurance Corporation (FDIC) insurance expense as a percentage of average assets, as compared to prior years. FDIC insurance expense was
TriState Capital Bank’s efficiency ratio for the second quarter of 2021 was
TriState Capital continued to maintain a low annualized non-interest expense to average assets ratio of
Pre-tax, pre-provision net revenue grew to a record
TriState Capital’s effective tax rate was
Net income available to common shareholders and earnings per share in the second quarter of 2021 are net of
INVESTMENT MANAGEMENT
A combination of investment performance, strong client relationships and a robust new business effort contributed to positive net inflows of
Chartwell’s new business and new flows from existing accounts of
Annual run-rate revenue grew to
Initiatives to enhance Chartwell profitability continue to be reflected in the segment’s improving level of expenses relative to revenue. Chartwell segment expenses were
ORGANIC LENDING FRANCHISE GROWTH
TriState Capital’s client engagement and distribution capabilities continued to drive the organic growth of both sides of its balance sheet by expanding the number and depth of its premier relationships with high-quality middle-market commercial customers, as well as expanding the number of high-net-worth clients the bank serves through its growing national referral network of financial intermediaries.
Average loans totaled a record
TriState Capital continued to fortify its position as the nation’s leading independent provider of marketable securities-backed loans for clients of independent investment advisory firms, trust companies, broker-dealers, regional securities firms, family offices, insurance companies and other financial intermediaries that do not offer banking services themselves. Private banking loans totaled a record
The company continued to grow relationships with top-quality middle-market sponsors and businesses, driving originations of commercial and industrial (C&I) and commercial real estate (CRE) loans while managing credit quality within the portfolio. Commercial loans totaled
C&I loans grew to
CRE loans grew to
STRATEGIC DEPOSIT AND LIQUIDITY MANAGEMENT FRANCHISE EXPANSION
TriState Capital continues to deliver growth on its agile liquidity management franchise, which creates meaningful service-based client relationships and provides highly responsive funding. The bank is winning new business and enhancing the breadth and depth of existing client relationships with its nationally distributed service and liquidity management offerings for financial services businesses, payroll and other specialized payment servicers, real estate firms, high-net-worth individuals, family offices, middle market companies, municipalities and non-profits.
Average deposits totaled a record
Treasury management deposit accounts totaled
The bank’s loan-to-deposit ratio at June 30, 2021 was
INTEREST RATE MANAGEMENT
TriState Capital continues to maintain a balance sheet with significant flexibility to manage interest rate dynamics, while offering attractive deposit and loan pricing to clients. Ultimately, the bank continues to favor an asset-neutral to asset-sensitive approach over the long term.
Investment securities totaled a record
Approximately
At June 30, 2021,
The yield on total loans averaged
ASSET QUALITY
TriState Capital maintained strong asset quality metrics in the second quarter of 2021, reflecting its disciplined credit culture and lower risk profile resulting from the majority of its loans consisting of private banking non-purpose margin loans collateralized by marketable securities. Private banking grew to represent
COVID-19 deferral levels continued to decline in line with expectations to four loans representing
The allowance for credit losses on loans and leases (ACL) was
TriState Capital’s net charge offs (NCOs) were
During the second quarter of 2021, NPAs, NPLs, and adverse-rated credits declined by
NPAs were
Total adverse-rated credits, including NPLs, were
TriState Capital recorded provision expense of
CAPITAL STRENGTH AND EFFICIENCY
The company’s strong balance sheet included
As of June 30, 2021, estimated regulatory capital ratios for TriState Capital Holdings were
The company’s common shareholders equity to total assets was
TriState Capital had
CONFERENCE CALL
As previously announced, TriState Capital will hold a conference call tomorrow to review its financial results and operating performance.
The live conference call on July 22 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link https://dpregister.com/sreg/10157838/e9f425b8be to receive a special dial-in number and PIN. Telephone participants who are unable to pre-register should dial in at least 10 minutes prior to the call and request the “TriState Capital investor call.” The call may be accessed by dialing 888-339-0757 from the United States or Canada, and 412-902-4194 from other international locations.
The live conference call will also be available through an audio webcast accessible at https://services.choruscall.com/links/tsc210722.html or https://investors.tristatecapitalbank.com. These links may also be used to access an archived replay of the conference call.
A telephone replay of the call will be available approximately one hour after the end of the conference through July 29. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada, or 412-317-0088 from other international locations, and entering the conference number 10157838.
ABOUT TRISTATE CAPITAL
TriState Capital Holdings, Inc. (Nasdaq: TSC) is a bank holding company headquartered in Pittsburgh, Pa., providing commercial banking, private banking and investment management services to middle-market companies, institutional clients and high-net-worth individuals. Its TriState Capital Bank subsidiary had
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect TriState Capital’s current views with respect to, among other things, future events and the company’s financial performance, as well as the company’s goals and objectives for future operations, financial and business trends, business prospects and management’s outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other measures of future financial or business performance, strategies or expectations. These statements are often, but not always, made through the use of words or phrases such as “achieve,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “maintain,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “sustain,” “target,” “trend,” “will,” “will likely result,” and “would,” or the negative versions of those words or other comparable statements of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about TriState Capital’s industry and beliefs or assumptions made by management, many of which, by their nature, are inherently uncertain. Although TriState Capital believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, TriState Capital cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that change over time and are difficult to predict, including, but not limited to, the following:
- risks associated with the COVID-19 pandemic and their expected impact and duration, including effects on TriState Capital’s operations, its clients, economic conditions and the demand for its products and services;
- TriState Capital’s ability to prudently manage its growth and execute its strategy, including the successful integration of past and future acquisitions, its ability to fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and manage customer disintermediation;
- deterioration of TriState Capital’s asset quality;
- TriState Capital’s level of non-performing assets and the costs associated with resolving problem loans, including litigation and other costs;
- possible additional loan and lease losses and impairment, changes in the value of collateral securing TriState Capital’s loans and leases and the collectability of loans and leases, particularly as a result of the COVID-19 pandemic and the programs implemented by the Coronavirus Aid, Relief, and Economic Security Act, including its automatic loan forbearance provisions;
- possible changes in the speed of loan prepayments by customers and loan origination or sales volumes;
- business and economic conditions generally and in the financial services industry, nationally and within TriState Capital’s local market areas, including the effects of an increase in unemployment levels, slowdowns in economic growth and changes in demand for products or services or the value of assets under management;
- TriState Capital’s ability to maintain important deposit customer relationships, its reputation and otherwise avoid liquidity risks;
- changes in management personnel;
- TriState Capital’s ability to recruit and retain key employees;
- volatility and direction of interest rates;
- risks related to the phasing out of LIBOR and changes in the manner of calculating reference rates, as well as the impact of the phase out of LIBOR and introduction of alternative reference rates on the value of loans and other financial instruments we hold that are linked to LIBOR;
- changes in accounting policies, accounting standards, or authoritative accounting guidance, including the CECL model;
- any impairment of TriState Capital’s goodwill or other intangible assets;
- TriState Capital’s ability to develop and provide competitive products and services that appeal to its customers and target markets;
- TriState Capital’s ability to provide investment management performance competitive with its peers and benchmarks;
- fluctuations in the carrying value of the assets under management held by Chartwell Investment Partners, LLC, the company’s registered investment advisor subsidiary, as well as the relative and absolute investment performance of such subsidiary’s investment products;
- operational risks associated with TriState Capital’s business, including technology and cyber-security related risks;
- increased competition in the financial services industry, particularly from regional and national institutions;
- negative perceptions or publicity with respect to any products or services offered by TriState Capital;
- adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings;
- changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including economic stimulus programs, and potential expenses associated with complying with such laws and regulations;
- TriState Capital’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms;
- regulatory limits on TriState Capital’s ability to receive dividends from its subsidiaries and pay dividends to shareholders;
- changes and direction of government policy towards and intervention in the U.S. financial system;
- natural disasters and adverse weather, acts of terrorism, regional or national civil unrest, cyber-attacks, an outbreak of hostilities, a public health outbreak (such as COVID-19) or other international or domestic calamities, and other matters beyond TriState Capital’s control;
- the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory or compliance risk resulting from developments related to any of the risks discussed above; and
- other factors that are discussed in TriState Capital’s filings with the Securities and Exchange Commission.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release. If one or more events related to these or other risks or uncertainties materialize, or if TriState Capital’s underlying assumptions prove to be incorrect, actual results may differ materially from what the company anticipates. Accordingly, readers should not place undue reliance on any such forward-looking statements. New factors emerge from time to time, and it is not possible for TriState Capital to predict which will arise. Any forward-looking statement speaks only as of the date on which it is made, and TriState Capital does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. In addition, TriState Capital cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
NON-GAAP FINANCIAL DISCLOSURES
This news release and the accompanying tables contain certain financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Specifically, TriState Capital reviews and reports tangible common equity, tangible book value per common share, tangible assets, tangible assets excluding private banking loans, tangible common equity ratio, tangible common equity ratio excluding private banking loans, EBITDA, total revenue, pre-tax, pre-provision net revenue and efficiency ratio. Although TriState Capital believes these non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Where non-GAAP disclosures are used, the most directly comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and in the reconciliation tables accompanying this news release.
TRISTATE CAPITAL HOLDINGS, INC. BALANCE SHEET DATA (UNAUDITED) |
|||||||||
|
As of |
||||||||
|
June 30, |
March 31, |
June 30, |
||||||
(Dollars in thousands) |
2021 |
2021 |
2020 |
||||||
Cash and cash equivalents |
$ |
529,453 |
|
$ |
446,484 |
|
$ |
724,942 |
|
Total investment securities |
1,337,658 |
|
1,231,074 |
|
812,140 |
|
|||
Loans and leases held-for-investment |
9,282,922 |
|
8,543,182 |
|
7,170,770 |
|
|||
Allowance for credit losses on loans and leases |
(32,577) |
|
(34,644) |
|
(23,276) |
|
|||
Loans and leases held-for-investment, net |
9,250,345 |
|
8,508,538 |
|
7,147,494 |
|
|||
Goodwill and other intangibles, net |
62,955 |
|
63,433 |
|
64,867 |
|
|||
Other assets |
360,761 |
|
315,621 |
|
380,398 |
|
|||
Total assets |
$ |
11,541,172 |
|
$ |
10,565,150 |
|
$ |
9,129,841 |
|
|
|
|
|
||||||
Deposits |
$ |
10,191,433 |
|
$ |
9,250,019 |
|
$ |
7,831,471 |
|
Borrowings, net |
345,600 |
|
345,547 |
|
395,552 |
|
|||
Other liabilities |
209,571 |
|
195,298 |
|
269,987 |
|
|||
Total liabilities |
10,746,604 |
|
9,790,864 |
|
8,497,010 |
|
|||
|
|
|
|
||||||
Preferred stock |
179,343 |
|
178,243 |
|
116,079 |
|
|||
Common shareholders’ equity |
615,225 |
|
596,043 |
|
516,752 |
|
|||
Total shareholders’ equity |
794,568 |
|
774,286 |
|
632,831 |
|
|||
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
11,541,172 |
|
$ |
10,565,150 |
|
$ |
9,129,841 |
|
TRISTATE CAPITAL HOLDINGS, INC. INCOME STATEMENT DATA (UNAUDITED) |
||||||||||||||||
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Interest income: |
|
|
|
|
|
|
||||||||||
Loans and leases |
$ |
51,702 |
|
$ |
49,186 |
|
$ |
47,377 |
|
|
$ |
100,888 |
|
$ |
106,295 |
|
Investments |
3,737 |
|
2,646 |
|
3,940 |
|
|
6,383 |
|
7,841 |
|
|||||
Interest-earning deposits |
116 |
|
160 |
|
344 |
|
|
276 |
|
1,727 |
|
|||||
Total interest income |
55,555 |
|
51,992 |
|
51,661 |
|
|
107,547 |
|
115,863 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Interest expense: |
|
|
|
|
|
|
||||||||||
Deposits |
10,106 |
|
10,754 |
|
15,953 |
|
|
20,860 |
|
43,197 |
|
|||||
Borrowings |
2,537 |
|
2,582 |
|
2,224 |
|
|
5,119 |
|
4,260 |
|
|||||
Total interest expense |
12,643 |
|
13,336 |
|
18,177 |
|
|
25,979 |
|
47,457 |
|
|||||
Net interest income |
42,912 |
|
38,656 |
|
33,484 |
|
|
81,568 |
|
68,406 |
|
|||||
Provision for credit losses |
96 |
|
224 |
|
6,005 |
|
|
320 |
|
8,998 |
|
|||||
Net interest income after provision for credit losses |
42,816 |
|
38,432 |
|
27,479 |
|
|
81,248 |
|
59,408 |
|
|||||
Non-interest income: |
|
|
|
|
|
|
||||||||||
Investment management fees |
9,451 |
|
9,000 |
|
7,738 |
|
|
18,451 |
|
15,376 |
|
|||||
Service charges on deposits |
325 |
|
316 |
|
315 |
|
|
641 |
|
528 |
|
|||||
Net gain (loss) on the sale and call of debt securities |
98 |
|
(1) |
|
14 |
|
|
97 |
|
71 |
|
|||||
Swap fees |
3,913 |
|
2,711 |
|
3,853 |
|
|
6,624 |
|
8,226 |
|
|||||
Commitment and other loan fees |
564 |
|
326 |
|
462 |
|
|
890 |
|
881 |
|
|||||
Bank owned life insurance income |
480 |
|
429 |
|
429 |
|
|
909 |
|
857 |
|
|||||
Other income |
13 |
|
870 |
|
186 |
|
|
883 |
|
374 |
|
|||||
Total non-interest income |
14,844 |
|
13,651 |
|
12,997 |
|
|
28,495 |
|
26,313 |
|
|||||
Non-interest expense: |
|
|
|
|
|
|
||||||||||
Compensation and employee benefits |
20,937 |
|
19,921 |
|
16,569 |
|
|
40,858 |
|
34,015 |
|
|||||
Premises and equipment expense |
1,173 |
|
1,406 |
|
1,515 |
|
|
2,579 |
|
2,901 |
|
|||||
Professional fees |
2,124 |
|
1,324 |
|
1,109 |
|
|
3,448 |
|
2,579 |
|
|||||
FDIC insurance expense |
1,125 |
|
1,125 |
|
2,560 |
|
|
2,250 |
|
4,730 |
|
|||||
General insurance expense |
341 |
|
298 |
|
278 |
|
|
639 |
|
540 |
|
|||||
State capital shares tax expense |
777 |
|
650 |
|
366 |
|
|
1,427 |
|
749 |
|
|||||
Travel and entertainment expense |
639 |
|
441 |
|
279 |
|
|
1,080 |
|
1,143 |
|
|||||
Technology and data services |
3,687 |
|
3,100 |
|
2,414 |
|
|
6,787 |
|
4,717 |
|
|||||
Intangible amortization expense |
478 |
|
478 |
|
486 |
|
|
956 |
|
988 |
|
|||||
Marketing and advertising |
898 |
|
684 |
|
686 |
|
|
1,582 |
|
1,300 |
|
|||||
Other operating expenses |
2,246 |
|
1,851 |
|
1,834 |
|
|
4,097 |
|
3,578 |
|
|||||
Total non-interest expense |
34,425 |
|
31,278 |
|
28,096 |
|
|
65,703 |
|
57,240 |
|
|||||
Income before tax |
23,235 |
|
20,805 |
|
12,380 |
|
|
44,040 |
|
28,481 |
|
|||||
Income tax expense |
4,455 |
|
4,605 |
|
1,979 |
|
|
9,060 |
|
5,185 |
|
|||||
Net income |
$ |
18,780 |
|
$ |
16,200 |
|
$ |
10,401 |
|
|
$ |
34,980 |
|
$ |
23,296 |
|
Preferred stock dividends |
3,077 |
|
3,059 |
|
1,962 |
|
|
6,136 |
|
3,924 |
|
|||||
Net income available to common shareholders |
$ |
15,703 |
|
$ |
13,141 |
|
$ |
8,439 |
|
|
$ |
28,844 |
|
$ |
19,372 |
|
TRISTATE CAPITAL HOLDINGS, INC. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) |
||||||||||||||||
|
As of and For the
Three Months Ended |
|
As of and For the
Six Months Ended |
|||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands, except per share data) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Per share and share data: |
|
|
|
|
|
|
||||||||||
Earnings per common share: |
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.42 |
|
$ |
0.36 |
|
$ |
0.30 |
|
|
$ |
0.78 |
|
$ |
0.69 |
|
Diluted |
$ |
0.41 |
|
$ |
0.35 |
|
$ |
0.30 |
|
|
$ |
0.76 |
|
$ |
0.68 |
|
Book value per common share |
$ |
18.54 |
|
$ |
17.97 |
|
$ |
17.31 |
|
|
$ |
18.54 |
|
$ |
17.31 |
|
Tangible book value per common share (1) |
$ |
16.65 |
|
$ |
16.06 |
|
$ |
15.14 |
|
|
$ |
16.65 |
|
$ |
15.14 |
|
Common shares outstanding, at end of period |
33,176,934 |
|
33,160,605 |
|
29,851,550 |
|
|
33,176,934 |
|
29,851,550 |
|
|||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
||||||||||
Basic |
31,280,481 |
|
31,224,474 |
|
28,223,085 |
|
|
31,252,632 |
|
28,201,837 |
|
|||||
Diluted |
32,147,758 |
|
32,187,034 |
|
28,527,961 |
|
|
32,278,282 |
|
28,687,804 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Performance ratios: |
|
|
|
|
|
|
||||||||||
Return on average assets (2) |
0.69 |
% |
0.64 |
% |
0.45 |
% |
|
0.67 |
% |
0.54 |
% |
|||||
Return on average common equity (2) |
10.37 |
% |
9.06 |
% |
6.62 |
% |
|
9.73 |
% |
7.60 |
% |
|||||
Net interest margin (2) (3) |
1.63 |
% |
1.59 |
% |
1.52 |
% |
|
1.61 |
% |
1.67 |
% |
|||||
Total revenue (1) |
$ |
57,658 |
|
$ |
52,308 |
|
$ |
46,467 |
|
|
$ |
109,966 |
|
$ |
94,648 |
|
Pre-tax, pre-provision net revenue (1) |
$ |
23,233 |
|
$ |
21,030 |
|
$ |
18,371 |
|
|
$ |
44,263 |
|
$ |
37,408 |
|
Bank efficiency ratio (1) |
51.51 |
% |
50.59 |
% |
50.39 |
% |
|
51.07 |
% |
51.13 |
% |
|||||
Non-interest expense to average assets (2) |
1.27 |
% |
1.24 |
% |
1.22 |
% |
|
1.26 |
% |
1.34 |
% |
|||||
|
|
|
|
|
|
|
||||||||||
Asset quality: |
|
|
|
|
|
|
||||||||||
Non-performing loans |
$ |
11,175 |
|
$ |
22,727 |
|
$ |
6,780 |
|
|
$ |
11,175 |
|
$ |
6,780 |
|
Non-performing assets |
$ |
13,743 |
|
$ |
25,451 |
|
$ |
9,504 |
|
|
$ |
13,743 |
|
$ |
9,504 |
|
Other real estate owned |
$ |
2,568 |
|
$ |
2,724 |
|
$ |
2,724 |
|
|
$ |
2,568 |
|
$ |
2,724 |
|
Non-performing assets to total assets |
0.12 |
% |
0.24 |
% |
0.10 |
% |
|
0.12 |
% |
0.10 |
% |
|||||
Non-performing loans to total loans |
0.12 |
% |
0.27 |
% |
0.09 |
% |
|
0.12 |
% |
0.09 |
% |
|||||
ACL to loans and leases |
0.35 |
% |
0.41 |
% |
0.32 |
% |
|
0.35 |
% |
0.32 |
% |
|||||
ACL to non-performing loans |
291.52 |
% |
152.44 |
% |
343.30 |
% |
|
291.52 |
% |
343.30 |
% |
|||||
Net charge-offs (recoveries) |
$ |
2,253 |
|
$ |
199 |
|
$ |
33 |
|
|
$ |
2,452 |
|
$ |
(170) |
|
Net charge-offs (recoveries) to average total loans (2) |
0.10 |
% |
0.01 |
% |
— |
% |
|
0.06 |
% |
— |
% |
|||||
|
|
|
|
|
|
|
||||||||||
Capital ratios: (4) |
|
|
|
|
|
|
||||||||||
Tier 1 leverage ratio |
6.86 |
% |
7.13 |
% |
6.30 |
% |
|
6.86 |
% |
6.30 |
% |
|||||
Common equity tier 1 risk-based capital ratio |
9.06 |
% |
9.10 |
% |
8.54 |
% |
|
9.06 |
% |
8.54 |
% |
|||||
Tier 1 risk-based capital ratio |
11.94 |
% |
12.08 |
% |
10.68 |
% |
|
11.94 |
% |
10.68 |
% |
|||||
Total risk-based capital ratio |
13.94 |
% |
14.18 |
% |
12.89 |
% |
|
13.94 |
% |
12.89 |
% |
|||||
Bank tier 1 leverage ratio |
7.34 |
% |
7.65 |
% |
7.11 |
% |
|
7.34 |
% |
7.11 |
% |
|||||
Bank common equity tier 1 risk-based capital ratio |
12.80 |
% |
12.98 |
% |
12.07 |
% |
|
12.80 |
% |
12.07 |
% |
|||||
Bank tier 1 risk based capital ratio |
12.80 |
% |
12.98 |
% |
12.07 |
% |
|
12.80 |
% |
12.07 |
% |
|||||
Bank total risk-based capital ratio |
13.26 |
% |
13.49 |
% |
12.52 |
% |
|
13.26 |
% |
12.52 |
% |
|||||
|
|
|
|
|
|
|
||||||||||
Investment Management Segment: |
|
|
|
|
|
|
||||||||||
Assets under management |
$ |
11,511,000 |
|
$ |
11,203,000 |
|
$ |
9,254,000 |
|
|
$ |
11,511,000 |
|
$ |
9,254,000 |
|
EBITDA (1) |
$ |
2,063 |
|
$ |
1,916 |
|
$ |
1,031 |
|
|
$ |
3,979 |
|
$ |
2,248 |
|
(1) |
These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures. |
|
(2) |
Ratios are annualized. |
|
(3) |
Net interest margin is calculated on a fully taxable equivalent basis. |
|
(4) |
Capital ratios are estimated until regulatory reports are filed. |
TRISTATE CAPITAL HOLDINGS, INC. AVERAGES AND YIELDS (UNAUDITED) |
||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
June 30, 2021 |
|
March 31, 2021 |
|
June 30, 2020 |
|||||||||||||||||||||
(Dollars in thousands) |
Average
|
Interest
|
Average
|
|
Average
|
Interest
|
Average
|
|
Average
|
Interest
|
Average
|
|||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning deposits |
$ |
407,627 |
|
$ |
114 |
|
0.11 |
% |
|
$ |
555,427 |
|
$ |
158 |
|
0.12 |
% |
|
$ |
1,098,510 |
|
$ |
342 |
|
0.13 |
% |
Federal funds sold |
11,502 |
|
2 |
|
0.07 |
% |
|
10,557 |
|
2 |
|
0.08 |
% |
|
7,883 |
|
1 |
|
0.05 |
% |
||||||
Debt securities available-for-sale |
266,264 |
|
886 |
|
1.33 |
% |
|
348,835 |
|
570 |
|
0.66 |
% |
|
329,015 |
|
2,026 |
|
2.48 |
% |
||||||
Debt securities held-to-maturity |
1,040,658 |
|
2,705 |
|
1.04 |
% |
|
637,719 |
|
1,900 |
|
1.21 |
% |
|
292,898 |
|
1,616 |
|
2.22 |
% |
||||||
Debt securities trading |
— |
|
— |
|
— |
% |
|
315 |
|
1 |
|
1.29 |
% |
|
— |
|
— |
|
— |
% |
||||||
FHLB stock |
11,776 |
|
154 |
|
5.25 |
% |
|
11,551 |
|
182 |
|
6.39 |
% |
|
13,269 |
|
305 |
|
9.24 |
% |
||||||
Total loans and leases |
8,808,775 |
|
51,702 |
|
2.35 |
% |
|
8,276,059 |
|
49,186 |
|
2.41 |
% |
|
7,094,744 |
|
47,377 |
|
2.69 |
% |
||||||
Total interest-earning assets |
10,546,602 |
|
55,563 |
|
2.11 |
% |
|
9,840,463 |
|
51,999 |
|
2.14 |
% |
|
8,836,319 |
|
51,667 |
|
2.35 |
% |
||||||
Other assets |
347,923 |
|
|
|
|
375,418 |
|
|
|
|
408,950 |
|
|
|
||||||||||||
Total assets |
$ |
10,894,525 |
|
|
|
|
$ |
10,215,881 |
|
|
|
|
$ |
9,245,269 |
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing checking accounts |
$ |
3,852,078 |
|
$ |
3,214 |
|
0.33 |
% |
|
$ |
3,065,983 |
|
$ |
2,793 |
|
0.37 |
% |
|
$ |
2,327,513 |
|
$ |
2,719 |
|
0.47 |
% |
Money market deposit accounts |
4,316,946 |
|
5,636 |
|
0.52 |
% |
|
4,345,454 |
|
5,964 |
|
0.56 |
% |
|
3,862,068 |
|
7,377 |
|
0.77 |
% |
||||||
Certificates of deposit |
929,906 |
|
1,256 |
|
0.54 |
% |
|
1,012,861 |
|
1,997 |
|
0.80 |
% |
|
1,389,984 |
|
5,857 |
|
1.69 |
% |
||||||
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FHLB borrowings |
250,000 |
|
1,082 |
|
1.74 |
% |
|
253,889 |
|
1,072 |
|
1.71 |
% |
|
300,000 |
|
1,284 |
|
1.72 |
% |
||||||
Line of credit borrowings |
— |
|
— |
|
— |
% |
|
4,589 |
|
55 |
|
4.86 |
% |
|
22,747 |
|
260 |
|
4.60 |
% |
||||||
Subordinated notes payable, net |
95,565 |
|
1,455 |
|
6.11 |
% |
|
95,511 |
|
1,455 |
|
6.18 |
% |
|
44,417 |
|
680 |
|
6.16 |
% |
||||||
Total interest-bearing liabilities |
9,444,495 |
|
12,643 |
|
0.54 |
% |
|
8,778,287 |
|
13,336 |
|
0.62 |
% |
|
7,946,729 |
|
18,177 |
|
0.92 |
% |
||||||
Noninterest-bearing deposits |
460,601 |
|
|
|
|
424,535 |
|
|
|
|
417,732 |
|
|
|
||||||||||||
Other liabilities |
203,033 |
|
|
|
|
247,659 |
|
|
|
|
252,303 |
|
|
|
||||||||||||
Shareholders’ equity |
786,396 |
|
|
|
|
765,400 |
|
|
|
|
628,505 |
|
|
|
||||||||||||
Total liabilities and shareholders’ equity |
$ |
10,894,525 |
|
|
|
|
$ |
10,215,881 |
|
|
|
|
$ |
9,245,269 |
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income (1) |
|
$ |
42,920 |
|
|
|
|
$ |
38,663 |
|
|
|
|
$ |
33,490 |
|
|
|||||||||
Net interest spread (1) |
|
|
1.57 |
% |
|
|
|
1.52 |
% |
|
|
|
1.43 |
% |
||||||||||||
Net interest margin (1) |
|
|
1.63 |
% |
|
|
|
1.59 |
% |
|
|
|
1.52 |
% |
||||||||||||
(1) |
Calculated on a fully taxable equivalent basis. |
|
(2) |
Annualized. |
TRISTATE CAPITAL HOLDINGS, INC. AVERAGES AND YIELDS (UNAUDITED) |
|||||||||||||||||
|
Six Months Ended June 30, |
||||||||||||||||
|
2021 |
|
2020 |
||||||||||||||
(Dollars in thousands) |
Average
|
Interest
|
Average
|
|
Average
|
Interest
|
Average
|
||||||||||
Assets |
|
|
|
|
|
|
|
||||||||||
Interest-earning deposits |
$ |
481,119 |
|
$ |
272 |
|
0.11 |
% |
|
$ |
781,406 |
|
$ |
1,705 |
|
0.44 |
% |
Federal funds sold |
11,032 |
|
4 |
|
0.07 |
% |
|
7,491 |
|
21 |
|
0.56 |
% |
||||
Debt securities available-for-sale |
307,322 |
|
1,456 |
|
0.96 |
% |
|
305,442 |
|
4,070 |
|
2.68 |
% |
||||
Debt securities held-to-maturity |
840,302 |
|
4,605 |
|
1.11 |
% |
|
247,326 |
|
3,104 |
|
2.52 |
% |
||||
Debt securities trading |
156 |
|
1 |
|
1.29 |
% |
|
115 |
|
1 |
|
1.75 |
% |
||||
FHLB stock |
11,664 |
|
336 |
|
5.81 |
% |
|
16,724 |
|
703 |
|
8.45 |
% |
||||
Total loans and leases |
8,543,889 |
|
100,888 |
|
2.38 |
% |
|
6,883,718 |
|
106,295 |
|
3.11 |
% |
||||
Total interest-earning assets |
10,195,484 |
|
107,562 |
|
2.13 |
% |
|
8,242,222 |
|
115,899 |
|
2.83 |
% |
||||
Other assets |
361,594 |
|
|
|
|
360,699 |
|
|
|
||||||||
Total assets |
$ |
10,557,078 |
|
|
|
|
$ |
8,602,921 |
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts |
$ |
3,461,202 |
|
$ |
6,007 |
|
0.35 |
% |
|
$ |
1,900,563 |
|
$ |
7,933 |
|
0.84 |
% |
Money market deposit accounts |
4,331,121 |
|
11,600 |
|
0.54 |
% |
|
3,705,517 |
|
22,031 |
|
1.20 |
% |
||||
Certificates of deposit |
971,155 |
|
3,252 |
|
0.68 |
% |
|
1,386,510 |
|
13,233 |
|
1.92 |
% |
||||
Borrowings: |
|
|
|
|
|
|
|
||||||||||
FHLB borrowings |
251,933 |
|
2,154 |
|
1.72 |
% |
|
360,962 |
|
3,319 |
|
1.85 |
% |
||||
Line of credit borrowings |
2,282 |
|
55 |
|
4.86 |
% |
|
12,115 |
|
261 |
|
4.33 |
% |
||||
Subordinated notes payable, net |
95,538 |
|
2,911 |
|
6.14 |
% |
|
22,208 |
|
680 |
|
6.16 |
% |
||||
Total interest-bearing liabilities |
9,113,231 |
|
25,979 |
|
0.57 |
% |
|
7,387,875 |
|
47,457 |
|
1.29 |
% |
||||
Noninterest-bearing deposits |
442,668 |
|
|
|
|
383,909 |
|
|
|
||||||||
Other liabilities |
225,223 |
|
|
|
|
202,755 |
|
|
|
||||||||
Shareholders’ equity |
775,956 |
|
|
|
|
628,382 |
|
|
|
||||||||
Total liabilities and shareholders’ equity |
$ |
10,557,078 |
|
|
|
|
$ |
8,602,921 |
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Net interest income (1) |
|
$ |
81,583 |
|
|
|
|
$ |
68,442 |
|
|
||||||
Net interest spread (1) |
|
|
1.56 |
% |
|
|
|
1.54 |
% |
||||||||
Net interest margin (1) |
|
|
1.61 |
% |
|
|
|
1.67 |
% |
||||||||
(1) |
Interest income and net interest margin are calculated on a fully taxable equivalent basis. |
|
(2) |
Annualized. |
TRISTATE CAPITAL HOLDINGS, INC. LOAN AND LEASE COMPOSITION (UNAUDITED) |
|||||||||||||||||
|
June 30, 2021 |
|
March 31, 2021 |
|
June 30, 2020 |
||||||||||||
(Dollars in thousands) |
Loan
|
Percent of
|
|
Loan
|
Percent of
|
|
Loan
|
Percent of
|
|||||||||
Private banking loans |
$ |
5,713,562 |
|
61.5 |
% |
|
$ |
5,053,621 |
|
59.2 |
% |
|
$ |
4,063,116 |
|
56.6 |
% |
Middle-market banking loans: |
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial |
1,240,917 |
|
13.4 |
% |
|
1,249,208 |
|
14.6 |
% |
|
1,152,880 |
|
16.1 |
% |
|||
Commercial real estate |
2,328,443 |
|
25.1 |
% |
|
2,240,353 |
|
26.2 |
% |
|
1,954,774 |
|
27.3 |
% |
|||
Total middle-market banking loans |
3,569,360 |
|
38.5 |
% |
|
3,489,561 |
|
40.8 |
% |
|
3,107,654 |
|
43.4 |
% |
|||
Loans and leases held-for-investment |
$ |
9,282,922 |
|
100.0 |
% |
|
$ |
8,543,182 |
|
100.0 |
% |
|
$ |
7,170,770 |
|
100.0 |
% |
TRISTATE CAPITAL HOLDINGS, INC. STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED) |
|||||||||||||||||||||||||
|
Three Months Ended June 30, 2021 |
|
Three Months Ended June 30, 2020 |
||||||||||||||||||||||
(Dollars in thousands) |
Bank |
Investment
|
Parent
|
Consolidated |
|
Bank |
Investment
|
Parent
|
Consolidated |
||||||||||||||||
Income statement data: |
|
|
|
||||||||||||||||||||||
Interest income |
$ |
55,555 |
|
$ |
— |
|
$ |
— |
|
$ |
55,555 |
|
|
$ |
51,661 |
|
$ |
— |
|
$ |
— |
|
$ |
51,661 |
|
Interest expense |
11,199 |
|
— |
|
1,444 |
|
12,643 |
|
|
17,251 |
|
— |
|
926 |
|
18,177 |
|
||||||||
Net interest income (loss) |
44,356 |
|
— |
|
(1,444) |
|
42,912 |
|
|
34,410 |
|
— |
|
(926) |
|
33,484 |
|
||||||||
Provision for credit losses |
96 |
|
— |
|
— |
|
96 |
|
|
6,005 |
|
— |
|
— |
|
6,005 |
|
||||||||
Net interest income (loss) after provision for credit losses |
44,260 |
|
— |
|
(1,444) |
|
42,816 |
|
|
28,405 |
|
— |
|
(926) |
|
27,479 |
|
||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees |
— |
|
9,774 |
|
(323) |
|
9,451 |
|
|
— |
|
7,897 |
|
(159) |
|
7,738 |
|
||||||||
Net gain on the sale and call of debt securities |
98 |
|
— |
|
— |
|
98 |
|
|
14 |
|
— |
|
— |
|
14 |
|
||||||||
Other non-interest income |
5,283 |
|
12 |
|
— |
|
5,295 |
|
|
5,215 |
|
30 |
|
— |
|
5,245 |
|
||||||||
Total non-interest income (loss) |
5,381 |
|
9,786 |
|
(323) |
|
14,844 |
|
|
5,229 |
|
7,927 |
|
(159) |
|
12,997 |
|
||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense |
— |
|
478 |
|
— |
|
478 |
|
|
— |
|
486 |
|
— |
|
486 |
|
||||||||
Other non-interest expense |
25,570 |
|
7,826 |
|
551 |
|
33,947 |
|
|
19,967 |
|
7,003 |
|
640 |
|
27,610 |
|
||||||||
Total non-interest expense |
25,570 |
|
8,304 |
|
551 |
|
34,425 |
|
|
19,967 |
|
7,489 |
|
640 |
|
28,096 |
|
||||||||
Income (loss) before tax |
24,071 |
|
1,482 |
|
(2,318) |
|
23,235 |
|
|
13,667 |
|
438 |
|
(1,725) |
|
12,380 |
|
||||||||
Income tax expense (benefit) |
4,565 |
|
286 |
|
(396) |
|
4,455 |
|
|
2,173 |
|
102 |
|
(296) |
|
1,979 |
|
||||||||
Net income (loss) |
$ |
19,506 |
|
$ |
1,196 |
|
$ |
(1,922) |
|
$ |
18,780 |
|
|
$ |
11,494 |
|
$ |
336 |
|
$ |
(1,429) |
|
$ |
10,401 |
|
|
Six Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2020 |
||||||||||||||||||||||
(Dollars in thousands) |
Bank |
Investment
|
Parent
|
Consolidated |
|
Bank |
Investment
|
Parent
|
Consolidated |
||||||||||||||||
Income statement data: |
|
|
|
||||||||||||||||||||||
Interest income |
$ |
107,547 |
|
$ |
— |
|
$ |
— |
|
$ |
107,547 |
|
|
$ |
115,863 |
|
$ |
— |
|
$ |
— |
|
$ |
115,863 |
|
Interest expense |
23,038 |
|
— |
|
2,941 |
|
25,979 |
|
|
46,547 |
|
— |
|
910 |
|
47,457 |
|
||||||||
Net interest income (loss) |
84,509 |
|
— |
|
(2,941) |
|
81,568 |
|
|
69,316 |
|
— |
|
(910) |
|
68,406 |
|
||||||||
Provision for credit losses |
320 |
|
— |
|
— |
|
320 |
|
|
8,998 |
|
— |
|
— |
|
8,998 |
|
||||||||
Net interest income (loss) after provision for credit losses |
84,189 |
|
— |
|
(2,941) |
|
81,248 |
|
|
60,318 |
|
— |
|
(910) |
|
59,408 |
|
||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment management fees |
— |
|
19,009 |
|
(558) |
|
18,451 |
|
|
— |
|
15,662 |
|
(286) |
|
15,376 |
|
||||||||
Net gain on the sale and call of debt securities |
97 |
|
— |
|
— |
|
97 |
|
|
71 |
|
— |
|
— |
|
71 |
|
||||||||
Other non-interest income |
9,915 |
|
32 |
|
— |
|
9,947 |
|
|
10,866 |
|
— |
|
— |
|
10,866 |
|
||||||||
Total non-interest income (loss) |
10,012 |
|
19,041 |
|
(558) |
|
28,495 |
|
|
10,937 |
|
15,662 |
|
(286) |
|
26,313 |
|
||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Intangible amortization expense |
— |
|
956 |
|
— |
|
956 |
|
|
— |
|
988 |
|
— |
|
988 |
|
||||||||
Other non-interest expense |
48,225 |
|
15,268 |
|
1,254 |
|
64,747 |
|
|
41,000 |
|
13,630 |
|
1,622 |
|
56,252 |
|
||||||||
Total non-interest expense |
48,225 |
|
16,224 |
|
1,254 |
|
65,703 |
|
|
41,000 |
|
14,618 |
|
1,622 |
|
57,240 |
|
||||||||
Income (loss) before tax |
45,976 |
|
2,817 |
|
(4,753) |
|
44,040 |
|
|
30,255 |
|
1,044 |
|
(2,818) |
|
28,481 |
|
||||||||
Income tax expense (benefit) |
9,294 |
|
596 |
|
(830) |
|
9,060 |
|
|
5,521 |
|
130 |
|
(466) |
|
5,185 |
|
||||||||
Net income (loss) |
$ |
36,682 |
|
$ |
2,221 |
|
$ |
(3,923) |
|
$ |
34,980 |
|
|
$ |
24,734 |
|
$ |
914 |
|
$ |
(2,352) |
|
$ |
23,296 |
|
TRISTATE CAPITAL HOLDINGS, INC. EARNINGS PER COMMON SHARE (UNAUDITED) |
||||||||||||||||
|
Three Months Ended |
|
Years Ended |
|||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands, except per share data) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share: |
|
|
|
|
|
|
||||||||||
Net income |
$ |
18,780 |
|
$ |
16,200 |
|
$ |
10,401 |
|
|
$ |
34,980 |
|
$ |
23,296 |
|
Less: Preferred dividends on Series A and Series B |
1,962 |
|
1,962 |
|
1,962 |
|
|
3,924 |
|
3,924 |
|
|||||
Less: Preferred dividends on Series C |
1,115 |
|
1,097 |
|
— |
|
|
2,212 |
|
— |
|
|||||
Net income available to common shareholders |
$ |
15,703 |
|
$ |
13,141 |
|
$ |
8,439 |
|
|
$ |
28,844 |
|
$ |
19,372 |
|
|
|
|
|
|
|
|
||||||||||
Allocation of net income available: |
|
|
|
|
|
|
||||||||||
Common shareholders |
$ |
13,272 |
|
$ |
11,127 |
|
$ |
8,439 |
|
|
$ |
24,375 |
|
$ |
19,372 |
|
Series C convertible preferred shareholders |
2,040 |
|
1,685 |
|
— |
|
|
3,749 |
|
— |
|
|||||
Warrant shareholders |
391 |
|
329 |
|
— |
|
|
720 |
|
— |
|
|||||
Total |
$ |
15,703 |
|
$ |
13,141 |
|
$ |
8,439 |
|
|
$ |
28,844 |
|
$ |
19,372 |
|
|
|
|
|
|
|
|
||||||||||
Basic weighted average common shares outstanding: |
|
|
|
|
|
|
||||||||||
Basic common shares |
31,280,481 |
|
31,224,474 |
|
28,223,085 |
|
|
31,252,632 |
|
28,201,837 |
|
|||||
Series C convertible preferred stock, as-if converted |
4,807,272 |
|
4,727,272 |
|
— |
|
|
4,807,272 |
|
— |
|
|||||
Warrants, as-if exercised |
922,438 |
|
922,438 |
|
— |
|
|
922,438 |
|
— |
|
|||||
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
$ |
0.42 |
|
$ |
0.36 |
|
$ |
0.30 |
|
|
$ |
0.78 |
|
$ |
0.69 |
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share: |
|
|
|
|
|
|
||||||||||
Income available to common shareholders after allocation |
$ |
13,272 |
|
$ |
11,127 |
|
$ |
8,439 |
|
|
$ |
24,375 |
|
$ |
19,372 |
|
|
|
|
|
|
|
|
||||||||||
Diluted weighted average common shares outstanding: |
|
|
|
|
|
|
||||||||||
Basic common shares |
31,280,481 |
|
31,224,474 |
|
28,223,085 |
|
|
31,252,632 |
|
28,201,837 |
|
|||||
Restricted stock - dilutive |
719,504 |
|
801,798 |
|
221,456 |
|
|
871,255 |
|
324,498 |
|
|||||
Stock options - dilutive |
147,773 |
|
160,762 |
|
83,420 |
|
|
154,395 |
|
161,469 |
|
|||||
Diluted common shares |
32,147,758 |
|
32,187,034 |
|
28,527,961 |
|
|
32,278,282 |
|
28,687,804 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share |
$ |
0.41 |
|
$ |
0.35 |
|
$ |
0.30 |
|
|
$ |
0.76 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
|
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Anti-dilutive shares: |
|
|
|
|
|
|
||||||||||
Restricted stock |
10,750 |
|
71,810 |
|
864,246 |
|
|
12,000 |
|
566,498 |
|
|||||
Stock options |
— |
|
— |
|
5,500 |
|
|
— |
|
— |
|
|||||
Series C convertible preferred stock, as-if converted |
4,807,272 |
|
4,727,272 |
|
— |
|
|
4,807,272 |
|
— |
|
|||||
Warrants, as-if exercised |
922,438 |
|
922,438 |
|
— |
|
|
922,438 |
|
— |
|
|||||
Total anti-dilutive shares |
5,740,460 |
|
5,721,520 |
|
869,746 |
|
|
5,741,710 |
|
566,498 |
|
|||||
Earnings per common share (“EPS”) is computed using the two-class method, which requires that the Series C convertible preferred stock and warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common shareholders. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. Net income available to common shareholders is reduced by the percentage of average common shares allocable to Series C convertible preferred holders and warrant holders on an as-if converted basis to arrive at net income allocable to common shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of its common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, and the vesting of restricted stock awards granted utilizing the treasury stock method. The Series C convertible preferred stock is excluded from diluted weighted average common shares outstanding because the payment of the dividend is considered in the net income allocable to common shareholders for the calculation of basic EPS.
TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are “tangible common equity,” “tangible book value per common share,” “tangible assets,” “tangible assets excluding private banking loans,” tangible common equity ratio,” “tangible common equity ratio excluding private banking loans,” “EBITDA,” “total revenue,” “pre-tax, pre-provision net revenue” and “efficiency ratio.” These non-GAAP financial measures are supplemental measures that we believe provide management and our investors with a more detailed understanding of our performance, although these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures in accordance with GAAP. The non-GAAP financial measures presented herein are calculated as follows:
“Tangible common equity” is defined as common shareholders’ equity reduced by intangible assets, including goodwill. We believe this measure is important to management and investors so that they can better understand and assess changes from period to period in common shareholders’ equity exclusive of changes in intangible assets associated with prior acquisitions. Intangible assets are created when we buy businesses that add relationships and revenue to our Company. Intangible assets have the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.
“Tangible book value per common share” is defined as common shareholders’ equity reduced by intangible assets, including goodwill, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets associated with prior acquisitions.
“Tangible assets” is defined as total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets.
“Tangible assets excluding private banking loans” is defined as total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in total assets exclusive of changes in intangible assets and private banking loans.
“Tangible common equity ratio” is defined as (i) common shareholders’ equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders’ equity to total assets exclusive of changes in intangible assets.
“Tangible common equity ratio excluding private banking loans” is defined as (i) common shareholders’ equity reduced by intangible assets, including goodwill, divided by (ii) total assets reduced by intangible assets, including goodwill, and private banking loans. We believe this measure is important to many investors who are interested in changes from period to period in the ratio of common shareholders’ equity to total assets exclusive of changes in intangible assets and private banking loans.
“EBITDA” is defined as net income before interest expense, income tax expense, depreciation expense and intangible amortization expense. We use EBITDA particularly to assess the strength of our investment management business. We believe this measure is important because it allows management and investors to better assess our investment management performance in relation to our core operating earnings by excluding certain non-cash items and the volatility that is associated with certain discrete items that are unrelated to our core business.
“Total revenue” is defined as net interest income and total non-interest income, excluding gains and losses on the sale and call of debt securities. We believe adjustments made to our operating revenue allow management and investors to better assess our core operating revenue by removing the volatility that is associated with certain items that are unrelated to our core business.
“Pre-tax, pre-provision net revenue” is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities and total non-interest expense. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan and lease losses and changes in our tax rates and other items that are unrelated to our core business.
“Efficiency ratio” is defined as total non-interest expense divided by our total revenue. We believe this measure allows management and investors to better assess our operating expenses in relation to our core operating revenue, particularly at the Bank.
TRISTATE CAPITAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
|||||||||
|
|
|
|
||||||
|
June 30, |
March 31, |
June 30, |
||||||
(Dollars in thousands, except per share data) |
2021 |
2021 |
2020 |
||||||
Tangible common equity and tangible book value per common share: |
|
|
|
||||||
Common shareholders’ equity |
$ |
615,225 |
|
$ |
596,043 |
|
$ |
516,752 |
|
Less: goodwill and intangible assets |
62,955 |
|
63,433 |
|
64,867 |
|
|||
Tangible common equity (numerator) |
$ |
552,270 |
|
$ |
532,610 |
|
$ |
451,885 |
|
Common shares outstanding (denominator) |
33,176,934 |
|
33,160,605 |
|
29,851,550 |
|
|||
Tangible book value per common share |
$ |
16.65 |
|
$ |
16.06 |
|
$ |
15.14 |
|
(Dollars in thousands) |
June 30, |
March 31, |
June 30, |
||||||
2021 |
2021 |
2020 |
|||||||
Tangible common equity ratio excluding private banking channel loans: |
|
|
|
||||||
Common shareholders' equity |
$ |
615,225 |
|
$ |
596,043 |
|
$ |
516,752 |
|
Less: goodwill and intangible assets |
62,955 |
|
63,433 |
|
64,867 |
|
|||
Tangible common equity (numerator) |
$ |
552,270 |
|
$ |
532,610 |
|
$ |
451,885 |
|
Total assets |
11,541,172 |
|
10,565,150 |
|
9,129,841 |
|
|||
Less: goodwill and intangible assets |
62,955 |
|
63,433 |
|
64,867 |
|
|||
Tangible assets |
$ |
11,478,217 |
|
$ |
10,501,717 |
|
$ |
9,064,974 |
|
Tangible common equity ratio |
4.81 |
% |
5.07 |
% |
4.98 |
% |
|||
Less: private banking loans |
5,713,562 |
|
5,053,621 |
|
4,063,116 |
|
|||
Tangible assets excluding private banking loans (denominator) |
$ |
5,764,655 |
|
$ |
5,448,096 |
|
$ |
5,001,858 |
|
Tangible common equity ratio excluding private banking loans |
9.58 |
% |
9.78 |
% |
9.03 |
% |
|||
INVESTMENT MANAGEMENT SEGMENT NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Investment Management EBITDA: |
|
|
|
|
|
|
||||||||||
Net income |
$ |
1,196 |
|
$ |
1,025 |
|
$ |
336 |
|
|
$ |
2,221 |
|
$ |
914 |
|
Interest expense |
— |
|
— |
|
— |
|
|
— |
|
— |
|
|||||
Income tax expense |
286 |
|
310 |
|
102 |
|
|
596 |
|
130 |
|
|||||
Depreciation expense |
103 |
|
103 |
|
107 |
|
|
206 |
|
216 |
|
|||||
Intangible amortization expense |
478 |
|
478 |
|
486 |
|
|
956 |
|
988 |
|
|||||
EBITDA |
$ |
2,063 |
|
$ |
1,916 |
|
$ |
1,031 |
|
|
$ |
3,979 |
|
$ |
2,248 |
|
TRISTATE CAPITAL HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Total revenue and pre-tax, pre-provision net revenue: |
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
42,912 |
|
$ |
38,656 |
|
$ |
33,484 |
|
|
$ |
81,568 |
|
$ |
68,406 |
|
Total non-interest income |
14,844 |
|
13,651 |
|
12,997 |
|
|
28,495 |
|
26,313 |
|
|||||
Less: net gain (loss) on the sale and call of debt securities |
98 |
|
(1) |
|
14 |
|
|
97 |
|
71 |
|
|||||
Total revenue |
$ |
57,658 |
|
$ |
52,308 |
|
$ |
46,467 |
|
|
$ |
109,966 |
|
$ |
94,648 |
|
Less: total non-interest expense |
34,425 |
|
31,278 |
|
28,096 |
|
|
65,703 |
|
57,240 |
|
|||||
Pre-tax, pre-provision net revenue |
$ |
23,233 |
|
$ |
21,030 |
|
$ |
18,371 |
|
|
$ |
44,263 |
|
$ |
37,408 |
|
BANK SEGMENT NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
||||||||||
(Dollars in thousands) |
2021 |
2021 |
2020 |
|
2021 |
2020 |
||||||||||
Bank total revenue: |
|
|
|
|
|
|
||||||||||
Net interest income |
$ |
44,356 |
|
$ |
40,153 |
|
$ |
34,410 |
|
|
$ |
84,509 |
|
$ |
69,316 |
|
Total non-interest income |
5,381 |
|
4,630 |
|
5,229 |
|
|
10,012 |
|
10,937 |
|
|||||
Less: net gain (loss) on the sale and call of debt securities |
98 |
|
(1) |
|
14 |
|
|
97 |
|
71 |
|
|||||
Bank total revenue |
$ |
49,639 |
|
$ |
44,784 |
|
$ |
39,625 |
|
|
$ |
94,424 |
|
$ |
80,182 |
|
|
|
|
|
|
|
|
||||||||||
Bank efficiency ratio: |
|
|
|
|
|
|
||||||||||
Total non-interest expense (numerator) |
$ |
25,570 |
|
$ |
22,655 |
|
$ |
19,967 |
|
|
$ |
48,225 |
|
$ |
41,000 |
|
Bank total revenue (denominator) |
$ |
49,639 |
|
$ |
44,784 |
|
$ |
39,625 |
|
|
$ |
94,424 |
|
$ |
80,182 |
|
Bank efficiency ratio |
51.51 |
% |
50.59 |
% |
50.39 |
% |
|
51.07 |
% |
51.13 |
% |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005909/en/
FAQ
What were the second quarter 2021 results for TriState Capital Holdings (TSC)?
How much did assets under management grow for TriState Capital Holdings in Q2 2021?
What is the net interest income reported by TSC for the second quarter of 2021?
What is the significance of TSC's total revenue in Q2 2021?
