TriState Capital Reports Third Quarter 2019 EPS of $0.50 on Record Net Income, Pre-tax Earnings, Revenue, Loans and Deposits

Published

-- Loans and deposits both grew at organic annual rates exceeding 20% for the 11th consecutive quarter, while investment management, private banking and commercial banking all contributed to double-digit annual revenue growth --

PITTSBURGH--(BUSINESS WIRE)-- TriState Capital Holdings, Inc. (Nasdaq: TSC) reported record levels of loans, deposits, net interest income, non-interest income and net income in the third quarter of 2019, as well as further improvement in its superior credit quality metrics.

The parent company of TriState Capital Bank and Chartwell Investment Partners reported diluted earnings per share (EPS) of $0.50 in the third quarter of 2019, compared to $0.47 in the third quarter of 2018 and $0.47 in the second quarter of 2019. Net income available to common shareholders was $14.4 million in the third quarter of 2019, increasing 5.4% from $13.6 million in the prior year period and 6.1% from $13.5 million in the second quarter of 2019.

“Our third quarter results continue to demonstrate the company’s ability to deliver robust top- and bottom-line growth in a variety of interest rate environments, with multiple revenue streams, a highly scalable business model, diverse funding sources, and exceptional organic balance sheet growth,” Chairman and Chief Executive Officer James F. Getz said. “We surpassed key milestones including $7 billion in assets, $6 billion in loans and total deposits, and $1 billion in treasury management deposit accounts in the third quarter of 2019, and our new business pipelines for each of investment management, private banking and commercial banking are as strong as ever. We believe TriState Capital is very well positioned for the future with a strong capital position, superior asset quality metrics and effective execution of our growth strategy.”

THIRD QUARTER 2019 HIGHLIGHTS

  • Pre-tax income grew to a record $19.4 million, up 20.3% from the prior year period and 18.2% from the linked quarter.
  • Non-interest income grew to a record $14.2 million, up 11.7% from the prior year period and 18.9% from the linked quarter.
  • Net interest income (NII) grew to a record $32.3 million, up 12.1% from the prior year period and 3.2% from the linked quarter.
  • Average deposits grew to $5.95 billion, up 30.2% from the same period last year and 11.4% from the linked quarter.
  • Average loans grew to $5.78 billion, up 25.7% from the same period last year and 5.8% from the linked quarter.
  • Private banking loans grew to a record $3.37 billion at period end, up 28.2% from one year prior and 5.6% during the quarter.
  • Commercial loans grew to a record $2.65 billion at period end, up 24.3% from one year prior and 7.0% during the quarter.
  • Non-interest expenses grew 8.1%, from the prior year period, and the bank efficiency ratio was 50.70%.
  • 85% of Chartwell’s investment strategies surpassed their benchmarks for the trailing three years and 75% surpassed their benchmarks for the trailing five years.

NII grew to a record $32.3 million in the third quarter of 2019, increasing 12.1% from $28.8 million in the year-ago quarter and 3.2% from $31.3 million in the second quarter of 2019. Double-digit annual NII growth continued as the company grew deposits at a faster rate than loans, maintaining a loan-to-deposit ratio under 100%, and reduced balance sheet risk via the continued growth in private banking loans backed by marketable securities.

Non-interest income grew to a record $14.2 million in the third quarter 2019, increasing 11.7% from $12.8 million in the prior year quarter and 18.9% from $12.0 million in the linked quarter.

TriState Capital’s non-interest income, which represented 30.3% of total revenue in the third quarter of 2019 when excluding net gains on the sale of debt securities, is largely made up of Chartwell investment management fees. Investment management fees were $8.9 million in the third quarter of 2019, compared to $9.8 million in the prior year quarter and $9.3 million in the linked quarter. Borrower-facing interest rate swap activity also generated $4.2 million in fees in the third quarter of 2019, compared to $1.9 million in the prior year quarter and $1.7 million in the linked quarter.

NII and non-interest income, excluding net gains on the sale of debt securities, combined to grow total revenue to a record $46.4 million for the third quarter of 2019, up 11.5% from $41.6 million in the year-ago period and up 7.4% from $43.2 million in the linked quarter.

The company’s investments in talent and building operating scale continue to drive annual revenue and profit growth, client acquisition and product innovation, while achieving incremental operating leverage. TriState Capital Bank’s efficiency ratio for the third quarter of 2019 was 50.70%, compared to 52.86% in the third quarter of 2018 and 55.16% in the linked quarter.

Third quarter 2019 non-interest expense was $27.8 million, increasing 8.1% from $25.7 million in the year-ago period and 0.7% from $27.6 million in the second quarter of 2019. TriState Capital also continued to lower non-interest expense as a percentage of average assets to 1.59% in the third quarter of 2019, down from 1.90% in the third quarter of 2018 and 1.71% in the linked quarter.

Pre-tax, pre-provision net revenue grew to a record $18.6 million in the third quarter of 2019, increasing 17.0% from $15.9 million in the year-ago period and 19.2% from $15.6 million in the linked quarter.

Pre-tax income grew to a record $19.4 million in the third quarter of 2019, increasing 20.3% from $16.1 million in the third quarter of 2018 and increasing 18.2% from $16.4 million in the linked quarter.

TriState Capital’s effective tax rate was 15.8% for the third quarter of 2019. The company’s effective tax rate is impacted by certain factors including the number, timing and size of tax credit investments, as well as the proportion of consolidated earnings attributed to investment management.

Net income available to common shareholders and EPS in the third quarter of 2019 reflected $2.0 million payable for the company’s quarterly cash dividends on Series A and Series B Non-Cumulative Perpetual Preferred Stock.

ORGANIC LOAN GROWTH

TriState Capital continued to show strong organic growth on both sides of its balance sheet, expanding the number and depth of its relationships with high-quality middle-market commercial customers, as well as the high-net-worth clients the bank serves through its national referral network of investment advisors and other financial intermediaries.

Average loans totaled a record $5.78 billion in the third quarter of 2019, growing 25.7% from $4.59 billion in the prior year period and 5.8% from $5.46 billion in the linked quarter. Loans at September 30, 2019 totaled $6.02 billion, growing $1.26 billion, or 26.4%, from September 30, 2018, and $351.7 million, or 6.2%, from June 30, 2019.

TriState Capital’s growing distribution capabilities helped drive new loan originations in its national private banking business for the third quarter of 2019, as the company fortifies its position as the nation’s leading provider of marketable securities-backed loans through independent investment advisory and other financial services firms. Private banking loans totaled $3.37 billion at September 30, 2019, increasing $740.4 million, or 28.2%, from one year prior and $179.5 million, or 5.6%, from the end of the linked quarter.

The company continued to grow relationships with middle-market enterprises in the third quarter of 2019 to drive originations of commercial and industrial (C&I) loans and commercial real estate (CRE) loans. Commercial loans totaled $2.65 billion at September 30, 2019, increasing $517.9 million, or 24.3%, from one year prior and $172.3 million, or 7.0%, from the end of the linked quarter.

C&I loans grew to $992.5 million at September 30, 2019, increasing $221.0 million, or 28.6%, from one year prior and $84.5 million, or 9.3%, from the end of the linked quarter. CRE loans grew to $1.66 billion at September 30, 2019, increasing $297.0 million, or 21.9%, from one year prior and $87.8 million, or 5.6%, from the end of the linked quarter. CRE loans represented 27.5% of total period-end loans.

STRATEGIC DEPOSIT FRANCHISE EXPANSION

TriState Capital continues to support private banking and commercial loan growth with the strategic and organic expansion of its deposit franchise. The bank’s national deposit, treasury management and liquidity management offerings are increasing the number and depth of depositor relationships with financial services businesses, high-net-worth individuals, family offices, middle market companies, professional service firms, specialized payment and transaction processors, municipalities and non-profits.

Average deposits totaled $5.95 billion in the third quarter of 2019, growing 30.2% from $4.57 billion in the same period last year and 11.4% from $5.34 billion in the linked quarter. Deposits at September 30, 2019 totaled $6.09 billion, growing $1.34 billion, or 28.2%, from September 30, 2018, and $307.6 million, or 5.3%, from June 30, 2019.

Treasury management deposit accounts totaled $1.05 billion at September 30, 2019, growing $449.8 million, or 74.6%, in the first nine months of 2019, and $74.6 million, or 7.6%, from June 30, 2019.

The bank’s loan-to-deposit ratio at September 30, 2019 was 98.7%, compared to 100.1% at September 30, 2018 and 97.9% at June 30, 2019.

INTEREST RATE MANAGEMENT

TriState Capital continues to maintain a balance sheet with significant flexibility to manage interest rate risk in changing markets.

The yield on total loans averaged 4.23% during the third quarter of 2019, compared to 4.19% in the prior year period and 4.45% in the linked quarter. Yields reflect the proportion of the portfolio dedicated to private banking non-purpose margin loans secured by marketable securities, an overall focus on variable rate pricing, asset quality, and operating leverage, and downward changes in 30-day LIBOR during the third quarter of 2019. At September 30, 2019, 92% of the company’s loan portfolio was floating rate and primarily indexed to 30-day LIBOR.

Total cost of funds for all deposits and interest-bearing liabilities averaged 2.27% during the third quarter of 2019, compared to 1.94% in the same period last year and 2.42% in the linked quarter. The total cost of deposits averaged 2.27% during the third quarter of 2019, compared to 1.92% in the same period last year and 2.41% in the linked quarter. At September 30, 2019, 21% of deposits were fixed-rate certificates of deposit.

TriState Capital reported a net interest margin of 1.94% for the third quarter of 2019, compared to 2.22% in the third quarter of 2018 and 2.03% in the second quarter of 2019.

INVESTMENT MANAGEMENT

Strong investment performance across Chartwell’s active equity and fixed income strategies contributed to growth in assets under management (AUM) during the third quarter of 2019. Chartwell AUM was $9.62 billion at September 30, 2019, $9.87 billion at September 30, 2018 and $9.49 billion at June 30, 2019.

Chartwell’s new business and new flows from existing accounts of $375 million and market appreciation of $153 million more than offset outflows of $398 million in the third quarter of 2019.

Chartwell’s weighted average fee rate was 0.38% at September 30, 2019. Investment management fee revenue was $8.9 million in the third quarter of 2019, compared to $9.8 million in the third quarter of 2018 and $9.3 million in the second quarter of 2019.

ASSET QUALITY

TriState Capital maintained strong asset quality metrics in the third quarter of 2019, reflecting the company’s disciplined credit culture and the expansion of its private banking non-purpose margin loans secured by marketable securities. Private banking loans comprised 56.0% of the total loan portfolio at September 30, 2019, while CRE and C&I comprised 27.5% and 16.5% of total loans, respectively.

Non-performing assets (NPAs) were $4.4 million, or 0.06% of total assets, at September 30, 2019, compared to $5.8 million, or 0.10%, at September 30, 2018, and $5.2 million, or 0.08%, at June 30, 2019.

Non-performing loans (NPLs) were $184,000, or 0.0% of total loans, at September 30, 2019, compared to $2.3 million, or 0.05%, at September 30, 2018, and $2.2 million, or 0.04%, at June 30, 2019.

Adverse-rated credits were $26.6 million, or 0.44% of total loans, at September 30, 2019, compared to $28.2 million, or 0.59%, at September 30, 2018, and $26.6 million, or 0.47%, at June 30, 2019.

Net charge offs were $35,000 in the third quarter of 2019, compared to $1.5 million in the year-ago quarter. The company recorded net recoveries of $16,000 in the linked quarter. TriState Capital recorded credits to provision of $607,000 in the third quarter of 2019, $234,000 in the third quarter of 2018 and $712,000 in the second quarter of 2019.

The company’s allowance for loan and lease losses (ALLL) continued to reflect overall credit quality, as well as lower levels of provision required by the growing proportion of low-risk-profile private banking loans in the bank’s portfolio. ALLL represented 0.22% of total loans at September 30, 2019, compared to 0.29% at September 30, 2018 and 0.25% at June 30, 2019.

CAPITAL STRENGTH AND FLEXIBILITY

The company’s regulatory capital levels benefited from retained earnings, as well as its Series B perpetual preferred stock offering completed in the second quarter of 2019. As of September 30, 2019, TriState Capital Holdings reported regulatory capital ratios of 12.38% for total risk-based capital, 12.12% for tier 1 risk-based capital, 9.56% for common equity tier 1 risk-based capital, and 7.91% for tier 1 leverage.

During the nine months ended September 30, 2019, the company repurchased a total of 90,000 shares of its common stock for approximately $1.8 million at an average cost of $20.21 per share. Since the Board first authorized share buybacks in October 2014, the company has repurchased a total of 2.1 million shares for approximately $32.3 million at an average cost of $15.36 per share. TriState Capital had $10.4 million of repurchase authority available at September 30, 2019, under previously disclosed buyback programs authorized by its Board of Directors.

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 October 17 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link http://dpregister.com/10135298 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, 855-669-9657 from Canada, or 412-902-4194 from other international locations.

A replay of the call will be available approximately one hour after the end of the conference through October 24. 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 10135298.

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 $7.1 billion in assets as of September 30, 2019, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Edison, N.J., and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. Its Chartwell Investment Partners subsidiary had $9.6 billion in assets under management as of September 30, 2019, and serves institutional clients and TriState Capital’s financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD LOOKING STATEMENTS

This news release includes “forward-looking statements” in reliance on the safe-harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. The words “achieve,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “maintain,” “opportunity,” “plan,” “potential,” “project,” “sustain,” “target,” “trend,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” and similar expressions, among others, generally identify forward-looking statements. Examples of forward-looking statements include, without limitation, statements relating to TriState Capital’s future plans, objectives or goals and are based on current expectations, plans or forecasts. Such forward-looking statements are subject to risks, uncertainties and changed circumstances that are difficult to predict and are often beyond TriState Capital’s ability to control. Actual results or outcomes could differ materially from those currently anticipated, discussed or projected by forward-looking statements. Such risks and uncertainties include, but are not limited to:

  • those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which TriState Capital operates and in which its loans are concentrated, 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 level of non-performing assets and the costs associated with resolving problem loans including litigation and other costs;
  • possible loan losses, impairment and the collectability of loans;
  • changes in market interest rates which may increase funding costs and/or reduce earning asset yields and thus reduce margin;
  • the impact of changes in interest rates on the credit quality and value of underlying securities collateral of the loan portfolio and the effect of such changes on the market value of TriState Capital’s investment securities portfolio;
  • federal and state regulation, supervision and examination, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder, and potential expenses associated with complying with regulations;
  • TriState Capital’s ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms;
  • possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations;
  • any impairment of TriState Capital’s goodwill or other intangible assets;
  • conditions in the financial markets that may limit TriState Capital’s access to additional funding to meet its liquidity needs;
  • the success of TriState Capital’s growth plans, including the successful integration of past and future acquisitions;
  • TriState Capital’s ability to fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and customer disintermediation;
  • TriState Capital’s ability to develop and provide competitive products and services that appeal to its customers and target markets;
  • negative perceptions or publicity with respect to any products or services offered by TriState Capital;
  • fluctuations in the carrying value of Chartwell’s assets under management;
  • the relative and absolute investment performance of Chartwell’s investment products;
  • adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings;
  • system failures or breaches of TriState Capital’s network security;
  • TriState Capital’s ability to recruit and retain key employees;
  • Chartwell’s success in negotiating distribution arrangements and maintaining distribution channels for its products;
  • the failure by a key vendor to fulfill its obligations to TriState Capital;
  • the effects of problems encountered by other financial institutions that adversely affect TriState Capital or the banking industry generally;
  • the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks;
  • possible changes in the speed of loan prepayments by TriState Capital’s customers and loan origination or sales volumes;
  • regulatory limits on TriState Capital’s ability to receive dividends from its subsidiaries and pay dividends to its preferred shareholders; and
  • the effects of any reputation, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above.

We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made, and TriState Capital disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of TriState Capital for any reason, except as specifically required by law. For further information about the factors that could affect TriState Capital’s future results, please see the company’s most-recent annual and quarterly reports filed on Form 10-K and Form 10-Q, and other documents the company files with the Securities and Exchange Commission from time to time.

NON-GAAP FINANCIAL DISCLOSURES

This news release and the accompanying tables contain 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, 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 comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and accompanying tables.

 

TRISTATE CAPITAL HOLDINGS, INC.

BALANCE SHEET DATA (UNAUDITED)

 

 

As of and For the Three Months Ended

 

As of and For the Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Cash and cash equivalents

$

383,948

 

$

458,269

 

$

186,535

 

 

$

383,948

 

$

186,535

 

Total investment securities

 

468,721

 

 

431,426

 

 

393,139

 

 

 

468,721

 

 

393,139

 

Loans and leases held-for-investment

 

6,016,680

 

 

5,664,934

 

 

4,758,356

 

 

 

6,016,680

 

 

4,758,356

 

Allowance for loan and lease losses

 

(13,374

)

 

(14,016

)

 

(13,583

)

 

 

(13,374

)

 

(13,583

)

Loans and leases held-for-investment, net

 

6,003,306

 

 

5,650,918

 

 

4,744,773

 

 

 

6,003,306

 

 

4,744,773

 

Goodwill and other intangibles, net

 

66,357

 

 

66,859

 

 

68,365

 

 

 

66,357

 

 

68,365

 

Other assets

 

276,117

 

 

238,531

 

 

180,476

 

 

 

276,117

 

 

180,476

 

Total assets

$

7,198,449

 

$

6,846,003

 

$

5,573,288

 

 

$

7,198,449

 

$

5,573,288

 

 

 

 

 

 

 

 

Deposits

$

6,094,605

 

$

5,786,983

 

$

4,754,588

 

 

$

6,094,605

 

$

4,754,588

 

Borrowings, net

 

330,000

 

 

335,000

 

 

262,365

 

 

 

330,000

 

 

262,365

 

Other liabilities

 

169,337

 

 

135,039

 

 

88,715

 

 

 

169,337

 

 

88,715

 

Total liabilities

 

6,593,942

 

 

6,257,022

 

 

5,105,668

 

 

 

6,593,942

 

 

5,105,668

 

 

 

 

 

 

 

 

Preferred stock

 

116,064

 

 

116,142

 

 

38,468

 

 

 

116,064

 

 

38,468

 

Common shareholders’ equity

 

488,443

 

 

472,839

 

 

429,152

 

 

 

488,443

 

 

429,152

 

Total shareholders’ equity

 

604,507

 

 

588,981

 

 

467,620

 

 

 

604,507

 

 

467,620

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

7,198,449

 

$

6,846,003

 

$

5,573,288

 

 

$

7,198,449

 

$

5,573,288

 

 
 

TRISTATE CAPITAL HOLDINGS, INC.

INCOME STATEMENT DATA (UNAUDITED)

 

 

As of and For the Three Months Ended

 

As of and For the Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Interest income:

 

 

 

 

 

 

Loans and leases

$

61,551

 

$

60,579

 

$

48,470

 

 

$

179,392

 

$

132,111

Investments

 

3,993

 

 

4,151

 

 

2,893

 

 

 

12,497

 

 

6,977

Interest-earning deposits

 

2,188

 

 

1,609

 

 

1,061

 

 

 

5,084

 

 

2,536

Total interest income

 

67,732

 

 

66,339

 

 

52,424

 

 

 

196,973

 

 

141,624

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

Deposits

 

34,114

 

 

32,155

 

 

22,182

 

 

 

95,602

 

 

52,279

Borrowings

 

1,302

 

 

2,881

 

 

1,423

 

 

 

7,380

 

 

5,473

Total interest expense

 

35,416

 

 

35,036

 

 

23,605

 

 

 

102,982

 

 

57,752

Net interest income

 

32,316

 

 

31,303

 

 

28,819

 

 

 

93,991

 

 

83,872

Provision (credit) for loan and lease losses

 

(607

)

 

(712

)

 

(234

)

 

 

(1,696

)

 

376

Net interest income after provision for loan and lease losses

 

32,923

 

 

32,015

 

 

29,053

 

 

 

95,687

 

 

83,496

Non-interest income:

 

 

 

 

 

 

Investment management fees

 

8,902

 

 

9,254

 

 

9,828

 

 

 

27,580

 

 

28,422

Service charges on deposits

 

129

 

 

78

 

 

146

 

 

 

343

 

 

420

Net gain on the sale and call of debt securities

 

206

 

 

112

 

 

 

346

 

 

6

Swap fees

 

4,171

 

 

1,692

 

 

1,881

 

 

 

7,666

 

 

5,066

Commitment and other loan fees

 

464

 

 

256

 

 

373

 

 

 

1,251

 

 

1,036

Other income

 

371

 

 

587

 

 

523

 

 

 

2,105

 

 

1,392

Total non-interest income

 

14,243

 

 

11,979

 

 

12,751

 

 

 

39,291

 

 

36,342

Non-interest expense:

 

 

 

 

 

 

Compensation and employee benefits

 

18,707

 

 

16,985

 

 

16,967

 

 

 

52,467

 

 

48,177

Premises and occupancy costs

 

1,704

 

 

1,834

 

 

1,432

 

 

 

4,808

 

 

3,986

Professional fees

 

1,305

 

 

1,406

 

 

889

 

 

 

3,706

 

 

3,538

FDIC insurance expense

 

994

 

 

1,047

 

 

1,053

 

 

 

3,462

 

 

3,333

General insurance expense

 

258

 

 

259

 

 

278

 

 

 

811

 

 

767

State capital shares tax

 

(720

)

 

380

 

 

485

 

 

 

40

 

 

1,396

Travel and entertainment expense

 

1,339

 

 

1,040

 

 

986

 

 

 

3,214

 

 

2,638

Intangible amortization expense

 

502

 

 

502

 

 

502

 

 

 

1,506

 

 

1,465

Other operating expenses

 

3,684

 

 

4,132

 

 

3,094

 

 

 

12,016

 

 

9,554

Total non-interest expense

 

27,773

 

 

27,585

 

 

25,686

 

 

 

82,030

 

 

74,854

Income before tax

 

19,393

 

 

16,409

 

 

16,118

 

 

 

52,948

 

 

44,984

Income tax expense

 

3,059

 

 

1,718

 

 

1,807

 

 

 

7,359

 

 

5,680

Net income

$

16,334

 

$

14,691

 

$

14,311

 

 

$

45,589

 

$

39,304

Preferred stock dividends

 

1,962

 

 

1,150

 

 

679

 

 

 

3,791

 

 

1,441

Net income available to common shareholders

$

14,372

 

$

13,541

 

$

13,632

 

 

$

41,798

 

$

37,863

 
 

TRISTATE CAPITAL HOLDINGS, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

 

 

As of and For the Three Months Ended

 

As of and For the Nine Months Ended

(Dollars in thousands, except per share data)

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

2019

 

2019

 

2018

 

2019

 

2018

Per share and share data:

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

Basic

$

0.52

 

$

0.49

 

$

0.49

 

 

$

1.50

 

$

1.37

 

Diluted

$

0.50

 

$

0.47

 

$

0.47

 

 

$

1.45

 

$

1.31

 

Book value per common share

$

16.67

 

$

16.12

 

$

14.84

 

 

$

16.67

 

$

14.84

 

Tangible book value per common share (1)

$

14.41

 

$

13.84

 

$

12.47

 

 

$

14.41

 

$

12.47

 

Common shares outstanding, at end of period

 

29,296,970

 

 

29,339,152

 

 

28,920,978

 

 

 

29,296,970

 

 

28,920,978

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

27,863,767

 

 

27,887,599

 

 

27,588,607

 

 

 

27,861,515

 

 

27,603,784

 

Diluted

 

28,778,671

 

 

28,790,673

 

 

28,949,924

 

 

 

28,759,408

 

 

28,849,926

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

Return on average assets (2)

 

0.94

%

 

0.91

%

 

1.06

%

 

 

0.94

%

 

1.04

%

Return on average common equity (2)

 

11.82

%

 

11.63

%

 

12.78

%

 

 

11.97

%

 

12.36

%

Net interest margin (2) (3)

 

1.94

%

 

2.03

%

 

2.22

%

 

 

2.02

%

 

2.31

%

Total revenue (1)

$

46,353

 

$

43,170

 

$

41,570

 

 

$

132,936

 

$

120,208

 

Pre-tax, pre-provision net revenue (1)

$

18,580

 

$

15,585

 

$

15,884

 

 

$

50,906

 

$

45,354

 

Bank efficiency ratio (1)

 

50.70

%

 

55.16

%

 

52.86

%

 

 

53.94

%

 

52.55

%

Non-interest expense to average assets (2)

 

1.59

%

 

1.71

%

 

1.90

%

 

 

1.69

%

 

1.98

%

 

 

 

 

 

 

 

Asset quality:

 

 

 

 

 

 

Non-performing loans

$

184

 

$

2,189

 

$

2,269

 

 

$

184

 

$

2,269

 

Non-performing assets

$

4,434

 

$

5,213

 

$

5,845

 

 

$

4,434

 

$

5,845

 

Other real estate owned

$

4,250

 

$

3,024

 

$

3,576

 

 

$

4,250

 

$

3,576

 

Non-performing assets to total assets

 

0.06

%

 

0.08

%

 

0.10

%

 

 

0.06

%

 

0.10

%

Non-performing loans to total loans

 

%

 

0.04

%

 

0.05

%

 

 

%

 

0.05

%

Allowance for loan and lease losses to loans

 

0.22

%

 

0.25

%

 

0.29

%

 

 

0.22

%

 

0.29

%

Allowance for loan and lease losses to non-performing loans

 

7,268.48

%

 

640.29

%

 

598.63

%

 

 

7,268.48

%

 

598.63

%

Net charge-offs (recoveries)

$

35

 

$

(16

)

$

1,504

 

 

$

(1,862

)

$

1,210

 

Net charge-offs (recoveries) to average total loans (2)

 

%

 

%

 

0.13

%

 

 

(0.05

)%

 

0.04

%

 

 

 

 

 

 

 

Capital ratios:

 

 

 

 

 

 

Tier 1 leverage ratio

 

7.91

%

 

8.21

%

 

7.53

%

 

 

7.91

%

 

7.53

%

Common equity tier 1 risk-based capital ratio

 

9.56

%

 

9.83

%

 

10.52

%

 

 

9.56

%

 

10.52

%

Tier 1 risk-based capital ratio

 

12.12

%

 

12.56

%

 

11.57

%

 

 

12.12

%

 

11.57

%

Total risk-based capital ratio

 

12.38

%

 

12.82

%

 

11.89

%

 

 

12.38

%

 

11.89

%

 

 

 

 

 

 

 

Investment Management Segment:

 

 

 

 

 

 

Assets under management

$

9,615,000

 

$

9,485,000

 

$

9,865,000

 

 

$

9,615,000

 

$

9,865,000

 

EBITDA (1)

$

932

 

$

1,557

 

$

1,867

 

 

$

5,110

 

$

5,010

 

 

(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.

 
 

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

(Dollars in thousands)

Average Balance

Interest

Income (1)/ Expense

Average Yield/ Rate (2)

 

Average Balance

Interest

Income (1)/ Expense

Average Yield/ Rate (2)

 

Average Balance

Interest

Income (1)/ Expense

Average Yield/ Rate (2)

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning deposits

$

388,274

$

2,144

2.19

%

 

$

255,697

$

1,542

2.42

%

 

$

207,346

$

1,015

1.94

%

Federal funds sold

 

8,424

 

44

2.07

%

 

 

11,218

 

67

2.40

%

 

 

9,563

 

46

1.91

%

Debt securities available-for-sale

 

262,665

 

2,085

3.15

%

 

 

249,281

 

2,053

3.30

%

 

 

236,053

 

1,836

3.09

%

Debt securities held-to-maturity

 

174,331

 

1,537

3.50

%

 

 

181,495

 

1,712

3.78

%

 

 

76,341

 

699

3.63

%

Equity securities

 

4,720

 

12

1.01

%

 

 

7,701

 

28

1.46

%

 

 

11,219

 

71

2.51

%

FHLB stock

 

10,585

 

382

14.32

%

 

 

20,235

 

385

7.63

%

 

 

11,342

 

314

10.98

%

Total loans and leases

 

5,776,652

 

61,552

4.23

%

 

 

5,462,489

 

60,579

4.45

%

 

 

4,594,755

 

48,470

4.19

%

Total interest-earning assets

 

6,625,651

 

67,756

4.06

%

 

 

6,188,116

 

66,366

4.30

%

 

 

5,146,619

 

52,451

4.04

%

Other assets

 

288,216

 

 

 

 

266,905

 

 

 

 

223,996

 

 

Total assets

$

6,913,867

 

 

 

$

6,455,021

 

 

 

$

5,370,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking accounts

$

1,116,624

$

5,795

2.06

%

 

$

868,721

$

4,965

2.29

%

 

$

657,402

$

3,267

1.97

%

Money market deposit accounts

 

3,106,186

 

18,870

2.41

%

 

 

2,855,795

 

18,200

2.56

%

 

 

2,506,334

 

12,428

1.97

%

Certificates of deposit

 

1,462,521

 

9,449

2.56

%

 

 

1,361,372

 

8,990

2.65

%

 

 

1,155,888

 

6,487

2.23

%

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

FHLB borrowings

 

224,130

 

1,302

2.30

%

 

 

430,770

 

2,334

2.17

%

 

 

221,576

 

853

1.53

%

Line of credit borrowings

 

 

 

%

 

 

857

 

10

4.68

%

 

 

1,277

 

16

4.97

%

Subordinated notes payable, net

 

 

 

%

 

 

34,984

 

537

6.16

%

 

 

34,832

 

554

6.31

%

Total interest-bearing liabilities

 

5,909,461

 

35,416

2.38

%

 

 

5,552,499

 

35,036

2.53

%

 

 

4,577,309

 

23,605

2.05

%

Noninterest-bearing deposits

 

268,013

 

 

 

 

256,404

 

 

 

 

253,033

 

 

Other liabilities

 

137,934

 

 

 

 

113,031

 

 

 

 

78,802

 

 

Shareholders’ equity

 

598,459

 

 

 

 

533,087

 

 

 

 

461,471

 

 

Total liabilities and shareholders’ equity

$

6,913,867

 

 

 

$

6,455,021

 

 

 

$

5,370,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

 

$

32,340

 

 

 

$

31,330

 

 

 

$

28,846

 

Net interest spread (1)

 

 

1.68

%

 

 

 

1.77

%

 

 

 

1.99

%

Net interest margin (1)

 

 

1.94

%

 

 

 

2.03

%

 

 

 

2.22

%

 

(1)

 

Interest income and net interest margin are calculated on a fully taxable equivalent basis.

(2)

 

Annualized.

 
 

TRISTATE CAPITAL HOLDINGS, INC.

AVERAGES AND YIELDS (UNAUDITED)

 

 

Nine Months Ended September 30,

 

2019

 

2018

(Dollars in thousands)

Average Balance

 

Interest

Income (1)/ Expense

 

Average Yield/ Rate (2)

 

Average Balance

 

Interest

Income (1)/ Expense

 

Average Yield/ Rate (2)

Assets

 

 

 

 

 

 

 

Interest-earning deposits

$

282,828

$

4,942

2.34

%

 

$

181,368

$

2,436

1.80

%

Federal funds sold

 

9,412

 

142

2.02

%

 

 

7,761

 

100

1.72

%

Debt securities available-for-sale

 

249,490

 

6,125

3.28

%

 

 

187,041

 

4,150

2.97

%

Debt securities held-to-maturity

 

189,083

 

5,267

3.72

%

 

 

69,217

 

1,973

3.81

%

Equity securities

 

8,363

 

112

1.79

%

 

 

9,498

 

200

2.82

%

FHLB stock

 

17,069

 

1,072

8.40

%

 

 

14,856

 

738

6.64

%

Total loans and leases

 

5,474,522

 

179,392

4.38

%

 

 

4,381,057

 

132,111

4.03

%

Total interest-earning assets

 

6,230,767

 

197,052

4.23

%

 

 

4,850,798

 

141,708

3.91

%

Other assets

 

266,059

 

 

 

 

215,388

 

 

Total assets

$

6,496,826

 

 

 

$

5,066,186

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest-bearing checking accounts

$

927,198

$

15,303

2.21

%

 

$

576,032

$

7,464

1.73

%

Money market deposit accounts

 

2,883,009

 

53,608

2.49

%

 

 

2,369,910

 

30,263

1.71

%

Certificates of deposit

 

1,375,324

 

26,691

2.59

%

 

 

1,021,248

 

14,552

1.91

%

Borrowings:

 

 

 

 

 

 

 

FHLB borrowings

 

370,550

 

6,222

2.24

%

 

 

316,264

 

3,743

1.58

%

Line of credit borrowings

 

1,650

 

68

5.51

%

 

 

2,202

 

69

4.19

%

Subordinated notes payable, net

 

23,178

 

1,090

6.29

%

 

 

34,781

 

1,661

6.38

%

Total interest-bearing liabilities

 

5,580,909

 

102,982

2.47

%

 

 

4,320,437

 

57,752

1.79

%

Noninterest-bearing deposits

 

262,056

 

 

 

 

242,325

 

 

Other liabilities

 

113,331

 

 

 

 

68,064

 

 

Shareholders’ equity

 

540,530

 

 

 

 

435,360

 

 

Total liabilities and shareholders’ equity

$

6,496,826

 

 

 

$

5,066,186

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

 

$

94,070

 

 

 

$

83,956

 

Net interest spread (1)

 

 

1.76

%

 

 

 

2.12

%

Net interest margin (1)

 

 

2.02

%

 

 

 

2.31

%

 

(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)

 

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

(Dollars in thousands)

Loan Balance

Percent of Total Loans

 

Loan Balance

Percent of Total Loans

 

Loan Balance

Percent of Total Loans

Private banking loans

$

3,368,142

 

56.0

%

 

$

3,188,668

 

56.3

%

 

$

2,627,749

 

55.2

%

Middle-market banking loans:

 

 

 

 

 

 

 

 

Commercial and industrial

992,508

 

16.5

%

 

908,054

 

16.0

%

 

771,546

 

16.2

%

Commercial real estate

1,656,030

 

27.5

%

 

1,568,212

 

27.7

%

 

1,359,061

 

28.6

%

Total middle-market banking loans

2,648,538

 

44.0

%

 

2,476,266

 

43.7

%

 

2,130,607

 

44.8

%

Loans and leases held-for-investment

$

6,016,680

 

100.0

%

 

$

5,664,934

 

100.0

%

 

$

4,758,356

 

100.0

%

 

TRISTATE CAPITAL HOLDINGS, INC.

STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)

 

 

Three Months Ended September 30, 2019

 

Three Months Ended September 30, 2018

(Dollars in thousands)

Bank

 

Investment Management

 

Parent and Other

 

Consolidated

 

Bank

 

Investment Management

 

Parent and Other

 

Consolidated

Income statement data:

 

 

 

Interest income

$

67,720

 

 

$

 

 

$

12

 

 

$

67,732

 

 

$

52,354

 

 

$

 

 

$

70

 

 

$

52,424

 

Interest expense

35,455

 

 

 

 

(39

)

 

35,416

 

 

23,038

 

 

 

 

567

 

 

23,605

 

Net interest income (loss)

32,265

 

 

 

 

51

 

 

32,316

 

 

29,316

 

 

 

 

(497

)

 

28,819

 

Provision (credit) for loan and lease losses

(607

)

 

 

 

 

 

(607

)

 

(234

)

 

 

 

 

 

(234

)

Net interest income (loss) after provision for loan and lease losses

32,872

 

 

 

 

51

 

 

32,923

 

 

29,550

 

 

 

 

(497

)

 

29,053

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

 

9,016

 

 

(114

)

 

8,902

 

 

 

 

9,914

 

 

(86

)

 

9,828

 

Net gain on the sale and call of debt securities

206

 

 

 

 

 

 

206

 

 

 

 

 

 

 

 

 

Other non-interest income

5,113

 

 

(9

)

 

31

 

 

5,135

 

 

2,850

 

 

 

 

73

 

 

2,923

 

Total non-interest income

5,319

 

 

9,007

 

 

(83

)

 

14,243

 

 

2,850

 

 

9,914

 

 

(13

)

 

12,751

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

 

502

 

 

 

 

502

 

 

 

 

502

 

 

 

 

502

 

Other non-interest expense

18,949

 

 

8,186

 

 

136

 

 

27,271

 

 

17,002

 

 

8,173

 

 

9

 

 

25,184

 

Total non-interest expense

18,949

 

 

8,688

 

 

136

 

 

27,773

 

 

17,002

 

 

8,675

 

 

9

 

 

25,686

 

Income (loss) before tax

19,242

 

 

319

 

 

(168

)

 

19,393

 

 

15,398

 

 

1,239

 

 

(519

)

 

16,118

 

Income tax expense (benefit)

3,142

 

 

3

 

 

(86

)

 

3,059

 

 

1,676

 

 

282

 

 

(151

)

 

1,807

 

Net income (loss)

$

16,100

 

 

$

316

 

 

$

(82

)

 

$

16,334

 

 

$

13,722

 

 

$

957

 

 

$

(368

)

 

$

14,311

 

 
 

 

Nine Months Ended September 30, 2019

 

Nine Months Ended September 30, 2018

(Dollars in thousands)

Bank

 

Investment Management

 

Parent and Other

 

Consolidated

 

Bank

 

Investment Management

 

Parent and Other

 

Consolidated

Income statement data:

 

 

 

Interest income

$

196,862

 

$

 

$

111

 

$

196,973

 

 

$

141,424

 

$

 

$

200

 

$

141,624

 

Interest expense

101,891

 

 

1,091

 

102,982

 

 

56,027

 

 

1,725

 

57,752

 

Net interest income (loss)

94,971

 

 

(980

)

93,991

 

 

85,397

 

 

(1,525

)

83,872

 

Provision (credit) for loan and lease losses

(1,696

)

 

 

(1,696

)

 

376

 

 

 

376

 

Net interest income (loss) after provision for loan and lease losses

96,667

 

 

(980

)

95,687

 

 

85,021

 

 

(1,525

)

83,496

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Investment management fees

 

27,912

 

(332

)

27,580

 

 

 

28,621

 

(199

)

28,422

 

Net gain on the sale and call of debt securities

346

 

 

 

346

 

 

6

 

 

 

6

 

Other non-interest income

10,467

 

17

 

881

 

11,365

 

 

7,875

 

1

 

38

 

7,914

 

Total non-interest income

10,813

 

27,929

 

549

 

39,291

 

 

7,881

 

28,622

 

(161

)

36,342

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Intangible amortization expense

 

1,506

 

 

1,506

 

 

 

1,465

 

 

1,465

 

Other non-interest expense

56,872

 

23,174

 

478

 

80,524

 

 

49,011

 

23,988

 

390

 

73,389

 

Total non-interest expense

56,872

 

24,680

 

478

 

82,030

 

 

49,011

 

25,453

 

390

 

74,854

 

Income (loss) before tax

50,608

 

3,249

 

(909

)

52,948

 

 

43,891

 

3,169

 

(2,076

)

44,984

 

Income tax expense (benefit)

6,825

 

830

 

(296

)

7,359

 

 

5,485

 

786

 

(591

)

5,680

 

Net income (loss)

$

43,783

 

$

2,419

 

$

(613

)

$

45,589

 

 

$

38,406

 

$

2,383

 

$

(1,485

)

$

39,304

 

 

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,” “EBITDA,” “total revenue” and “efficiency ratio.” Although we believe these non-GAAP financial measures provide management and our investors with a more detailed understanding of our performance, these measures are not necessarily comparable to similar measures that may be presented by other companies. 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.

“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 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 income, without giving effect to loan loss provision and income taxes, and excluding gains and losses on the sale and call of investment securities. 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 losses or 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)

 

 

September 30,

 

June 30,

 

September 30,

(Dollars in thousands, except per share data)

2019

 

2019

 

2018

Tangible book value per common share:

 

 

 

Common shareholders’ equity

$

488,443

 

$

472,839

 

$

429,152

 

Less: goodwill and intangible assets

 

66,357

 

 

66,859

 

 

68,365

 

Tangible common equity

$

422,086

 

$

405,980

 

$

360,787

 

Common shares outstanding

 

29,296,970

 

 

29,339,152

 

 

28,920,978

 

Tangible book value per common share

$

14.41

 

$

13.84

 

$

12.47

 

 

INVESTMENT MANAGEMENT SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Investment Management EBITDA:

 

 

 

 

 

 

Net income

$

316

 

$

672

 

$

957

 

 

$

2,419

 

$

2,383

 

Interest expense

 

 

 

 

 

 

 

 

 

Income taxes expense (benefit)

3

 

264

 

282

 

 

830

 

786

 

Depreciation expense

111

 

119

 

126

 

 

355

 

376

 

Intangible amortization expense

502

 

502

 

502

 

 

1,506

 

1,465

 

EBITDA

$

932

 

$

1,557

 

$

1,867

 

 

$

5,110

 

$

5,010

 

 

TRISTATE CAPITAL HOLDINGS, INC.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Total revenue:

 

 

 

 

 

 

Net interest income

$

32,316

 

$

31,303

 

$

28,819

 

 

$

93,991

 

$

83,872

 

Total non-interest income

14,243

 

11,979

 

12,751

 

 

39,291

 

36,342

 

Less: net gain on the sale and call of debt securities

206

 

112

 

 

 

346

 

6

 

Total revenue

$

46,353

 

$

43,170

 

$

41,570

 

 

$

132,936

 

$

120,208

 

Less: total non-interest expense

27,773

 

27,585

 

25,686

 

 

82,030

 

74,854

 

Pre-tax, pre-provision net revenue

$

18,580

 

$

15,585

 

$

15,884

 

 

$

50,906

 

$

45,354

 

 

BANK SEGMENT

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(Dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Bank total revenue:

 

 

 

 

 

 

Net interest income

$

32,265

 

$

31,794

 

$

29,316

 

 

$

94,971

 

$

85,397

 

Total non-interest income

5,319

 

2,590

 

2,850

 

 

10,813

 

7,881

 

Less: net gain on the sale and call of debt securities

206

 

112

 

 

 

346

 

6

 

Bank total revenue

$

37,378

 

$

34,272

 

$

32,166

 

 

$

105,438

 

$

93,272

 

 

 

 

 

 

 

 

Bank efficiency ratio:

 

 

 

 

 

 

Total non-interest expense (numerator)

$

18,949

 

$

18,903

 

$

17,002

 

 

$

56,872

 

$

49,011

 

Bank total revenue (denominator)

$

37,378

 

$

34,272

 

$

32,166

 

 

$

105,438

 

$

93,272

 

Bank efficiency ratio

50.70

%

55.16

%

52.86

%

 

53.94

%

52.55

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191016005848/en/

MEDIA CONTACT Jack Horner 267-932-8760, ext. 302 412-600-2295 (mobile) jack@hornercom.com

INVESTOR RELATIONS CONTACT Casteel Schoenborn Jeff Schoenborn and Kate Croft 888-609-8351 TSC@csirfirm.com

Source: TriState Capital Holdings, Inc.

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