First Community Financial Partners, Inc. Announces Third Quarter 2015 Financial Results

  • Transition to NASDAQ Capital Market
  • Basic and diluted earnings per share (“EPS”) of $0.17 for the quarter; $.06 or 54.5% increase over prior year
  • Tangible book value growth of $0.46, or 8.5%, to $5.88 year-over-year
  • Asset growth of $105.5 million, or 11.5%, year-over-year to $1.0 billion
  • Loan growth of $53.9 million, or 7.8%, year-over-year
  • Noninterest bearing deposit growth of $34.6 million, or 24.7%, year-over-year
  • Pre-tax, pre-provision core income growth year-to-date of $475,000 or 5.7% year-over-year
  • Net interest income growth year to date of $1.3 million due to increased income from loan growth and reduction in interest expense
  • Noninterest expense increased modestly by $331,000, or 2.2%, year-over-year
  • Negative loan loss provision of $813,000 for the quarter and $1.6 million year to date reflecting overall improvement in asset quality
  • Improved capital flexibility as bank subsidiary reached positive retained earnings allowing it to begin providing cash dividends to the parent company

JOLIET, Ill., Oct. 16, 2015 (GLOBE NEWSWIRE) — First Community Financial Partners, Inc. (NASDAQ:FCFP) (“First Community”or the “Company”), the parent company of First Community Financial Bank (the “Bank”), today reported financial results as of and for the three and nine month periods ended September 30, 2015.

Net income applicable to common shareholders for the three months ended September 30, 2015 was $2.9 million, or $0.17 per diluted share, compared with $1.9 million, or $0.11 per diluted share, for the three months ended September 30, 2014. Earnings in the third quarter of 2015 reflected year-over-year growth in net interest income and a negative loan loss provision of $813,000, compared with no loan loss provision in the third quarter of 2014.  The negative loan loss provision was primarily the result of continued improvement in asset quality and a favorable change in the loan loss history used in the calculation of the allowance for loan losses. 

Net income applicable to common shareholders for the nine months ended September 30, 2015 was $6.9 million, or $0.40 per diluted share, compared with $3.5 million, or $0.21 per diluted share, for the nine months ended September 30, 2014.  Earnings for the nine months ended September 30, 2015 reflected year-over-year growth in net interest income and a negative loan loss provision of $1.6 million compared with a $2.7 million loan loss provision for the nine months ended September 30, 2014, a $4.3 million improvement.

Third Quarter 2015 Highlights

  • Return on average assets (“ROAA”) improved to 1.17% in the third quarter of 2015 from 0.81% in the  third quarter of 2014, while return on average equity (“ROAE”) rose sharply to 12.01% in the third quarter of 2015 compared with 7.81% in the third quarter of 2014.
  • Tangible book value per share rose to $5.88 at September 30, 2015, from $5.42 a year earlier, and was up from $5.52 at December 31, 2014.
  • Pre-tax pre-provision core income, a non-GAAP measure, rose to $3.4 million in the third quarter of 2015 compared with $2.9 million in the third quarter of 2014.
  • Net interest income before provision for loan losses increased to $8.0 million in the third quarter of 2015, up 9.49% compared with $7.3 million in the third quarter of 2014, reflecting higher interest income and lower year-over-year interest expense.
  • Total assets increased  $105.5 million, or 11.50%, and reached a Company-record $1.0 billion at September 30, 2015 from $917.9 million at September 30, 2014.
  • Total loans increased 7.8%, or $54.0 million, to $743.1 million at September 30, 2015 from $689.1 million at September 30, 2014, with year-over-year growth in almost all loan categories led by commercial real estate, commercial, and residential 1-4 family.
  • Total deposits increased 11.7%, or $88.6 million, to $846.7 million at September 30, 2015 from $758.1 million at September 30, 2014. Core demand deposits comprised 64.2% of total deposits at the end of the third quarter of 2015 compared with 57.1% of total deposits at the end of the third quarter of 2014. Noninterest bearing deposit accounts, an important source of lower-cost funding to support loan activity, increased $34.5 million, or 24.7%, to $174.8 million at  the end of the third quarter of 2015 from $140.3 million at the end of the third quarter of 2014.
  • Asset quality measures improved dramatically, including a decline in the ratio of nonperforming assets to total assets to 0.71% at September 30, 2015 from 1.37% a year earlier.  Nonperforming assets decreased $5.3 million, or 42.0%, from $12.6 million at September 30, 2014 to $7.3 million at September 30, 2015.

Roy Thygesen, CEO said, “Third quarter 2015 was monumental for three key reasons.  As a result of continued operating improvement at the Bank, we have reached positive retained earnings again at our First Community Financial Bank subsidiary.  The Bank is now able to provide cash dividends to the parent company, which will provide added financial flexibility to the Company and its shareholders.  In addition, we transitioned to the NASDAQ Capital Market.  Trading on NASDAQ is expected to increase both retail and institutional investor exposure to the Company, improve trading liquidity for shareholders, and, when appropriate, increase the Company’s access to the public and private capital markets to support continued growth of the institution.”

“We are also proud to have reached our founders’ goal of eclipsing $1 billion in total assets, a key measure of our success.  Our Bank continues to attract new clients, which is clearly evidenced by recent growth in net loans and core deposits.  Checking account growth is a direct reflection of our continued focus on developing relationships, not transactional loan growth.  We believe the Bank is playing a vital role as a leading financial services provider in our core markets, and our Company’s future is bright.”

Year to Date 2015 Highlights

  • ROAA improved to 0.94% for the nine months ended September 30, 2015, from 0.53% for the nine months ended September 30, 2014, while ROAE rose sharply to 9.59% for the nine months ended September 30, 2015 compared with 5.04% for the nine months ended September 30, 2014.
  • Pre-tax pre-provision core income, a non-GAAP measure, rose to $8.7 million for the nine months ended September 30, 2015 compared with $8.3 million for the same period in 2014.
  • Net interest income before provision for loan losses increased to $22.6 million for the nine months ended September 30, 2015, up 6.1% compared with $21.3 million for the nine months ended September 30, 2014, reflecting higher interest income, which was the result of current year loan growth, and lower year-over-year interest expense.  Interest expense was lower in 2015 due to lower parent company debt costs, in addition to improved deposit funding and a shift to noninterest bearing deposit accounts. 
  • Total assets reached a Company-record $1.0 billion at September 30, 2015, an increase of $99.4 million, or 10.8%, from $924.1 million at December 31, 2014.
  • Total loans increased $53.9 million, or 7.8%, to $743.1 million at September 30, 2015 from $689.2 million at December 31, 2014.
  • Total deposits increased $77.3 million, or 10.0%, to $846.7 million at September 30, 2015 from $769.4 million at December 31, 2014. Core demand deposits comprised 64.2% of total deposits in the third quarter of 2015 compared with 59.6% of total deposits at December 31, 2014. Noninterest bearing deposit accounts, an important source of lower-cost funding to support loan activity, increased $16.5 million, or 10.4%, to $174.8 million in the third quarter of 2015 from $158.3 million at December 31, 2014.

Income Statement Highlights

Net interest income was $8.0 million for the third quarter of 2015, compared to $7.3 million for the third quarter of 2014, an increase of $0.7 million or 9.6%.  The Company’s net interest margin was 3.31% in the third quarter of 2015, compared to 3.34% in the third quarter of 2014, while the net interest spread was 3.13% compared to 3.14% in the prior year’s third quarter.

Interest income on loans was $8.2 million for the quarter ended September 30, 2015, compared to $8.0 million for the quarter ended September 30, 2014, reflecting contributions from $67.8 million in loan growth, partially offset by newer loans booked at lower average yields due to the ongoing low interest rate environment and competitive market conditions.  There were approximately $136.0 million in new loans and renewals during the first three quarters of 2015, at a weighted average rate of 4.13%.

Interest income on securities was $1.1 million for the quarter ended September 30, 2015, compared to $848,000 for the quarter ended September 30, 2014. The increase in interest income on securities was the result of growth in the portfolio, along with improvement in the overall yield of the government sponsored enterprises and state and political subdivision portfolios.

Interest expense on deposits was $973,000 in the third quarter of 2015, compared to $1.1 million in the third quarter of 2014, which primarily reflected a decline in time deposits, that were replaced by growth in noninterest bearing deposits, along with an increase in lower cost NOW, money market and savings accounts. In addition, the reduced borrowing costs at the parent company helped to lower interest expense during the third quarter, after the refinancing of outstanding subordinated debt with a lower interest rate line of credit.

Noninterest income was $769,000 in the third quarter of 2015, a decrease of $197,000, or 20.4%, which included small decreases in service charges on deposit accounts and slightly lower mortgage fee income of $178,000.  Year-to-date 2015 both service charges and mortgage income were up over the prior year despite lower results in the third quarter. Noninterest income in the third quarter of 2014 was $966,000, which included $407,000 in gains on the sale of securities, compared to $251,000 in gains on sales of securities in 2015, as a result of changes in the investment portfolio during 2014.

Noninterest expense was $5.1 million for the quarter ended September 30, 2015 compared to $5.1 million for the quarter ended September 30, 2014. Salaries and benefits were consistent year-over-year and lower occupancy expense was reflected by the purchase of the Channahon, Illinois branch in mid-2014.  The third quarter of 2015 included a net loss on foreclosed assets of $58,000 compared to $78,000 in the same period in 2014.  Losses were related to changes in property values, as appraisals are updated annually.

Balance Sheet Highlights

Total assets were $1.0 billion at September 30, 2015, up 11.5% or $105.5 million, from $917.9 million at September 30, 2014, and up 10.8%, or $99.4 million, from $924.1 million at December 31, 2014.

Net loans (after allowance for loan losses) were $731.3 million at September 30, 2015, an 8.3%, or $56.0 million, increase from $675.3 million at September 30, 2014, and a 8.3%, or a $56.0 million, increase from $675.3 million at December 31, 2014, reflecting balanced growth in all lending categories, other than consumer and other loans, and a lower allowance for loan losses. Commercial real estate loans increased $15.4 million, or 4.4%, to $368.9 million year-over-year. Commercial loans rose $4.0 million year-over-year, an increase of 2.3% to $180.7 million. Residential 1-4 family loans, which grew steadily throughout 2014, were $126.3 million at September 30, 2015, up $25.6 million, or 25.4%, from $100.7 million at September 30, 2014, and up 25.3% from $100.8 million at December 31, 2014.

Year-over-year asset comparisons include growth of investment securities to $217.2 million at September 30, 2015, compared with $157.1 million at September 30, 2014 and $170.1 million at December 31, 2014.  Strong gains in low-cost deposits facilitated some of the growth.

Total deposits, which increased $77.3 million from December 31, 2014, or 10.0%, to $846.7 million in the third quarter of 2015, compared with $769.4 million at December 31, 2014, and $758.1 million at September 30, 2014, reflected the Company’s focus on growing core deposits from commercial business depositors.  Approximately $34.6 million of the year-over-year growth came from commercial noninterest bearing demand deposits by expanding and developing those relationships. Noninterest bearing demand deposits increased 24.7%, or $34.6 million, year-over-year despite being flat in the third quarter of 2015.  Savings deposits increased 26.8%, or $7.4 million, year-over-year and 4.1%, or $1.4 million, in the third quarter.  NOW accounts increased 35.1%, or $26.4 million, from September 30, 2014, and 6.7% in the third quarter.  Money market accounts increased $42.2 million or 22.2% to $232.2 million at September 30, 2015 from $190.0 million at September 30, 2014 and increased $36.0 million or 18.3% from $196.2 million at December 31, 2014. This growth has reduced First Community’s overall reliance on time deposits for funding its asset growth. Ongoing rebalancing of the Company’s deposit portfolio resulted in a decline in time deposits to $302.9 million at September 30, 2015 from $310.9 million at December 31, 2014 and $324.9 million at September 30, 2014, a decrease of 6.8%, or $22.0 million, year-over-year.

Asset Quality

Total nonperforming assets declined by 42.0%, or $5.3 million, to $7.3 million at September 30, 2015 from $12.6 million at September 30, 2014, and 23.6% from $9.5 million at December 31, 2014. The improvement reflected a decline in total nonperforming loans to $3.2 million from $9.1 million a year earlier, and from $7.0 million at December 31, 2014.  Foreclosed assets were $4.1 million at September 30, 2015, which were up from $3.5 million at September 30, 2014 and an increase from $2.5 million at December 31, 2014 due to the transfer of two properties in the second quarter of 2015 from nonperforming loans. The Company had net recoveries of $146,000 in the third quarter of 2015, compared to net charge-offs of $512,000 in the third quarter of 2014.  Net charge-offs for the nine months ended September 30, 2015 were $588,000 as compared to $4.6 million for the same period in 2014.

The Company had a negative provision for loan losses of $813,000 in the third quarter, and a negative provision for loan losses of $1.6 million for the nine months ended September 30, 2015, compared with no provision in the third quarter of 2014 and a provision of $2.7 million for the nine months ended September 30, 2014, reflecting significantly improved asset quality year over year. Even with this negative provision, the Company’s allowance for loan losses to nonperforming loans remains strong at 370.52% at September 30, 2015, compared to 198.73% at December 31, 2014 and 153.02% at September 30, 2014.

Capital Ratios

The Company was “well capitalized” according to applicable regulatory standards at September 30, 2015, with a Tier 1 leverage ratio of 9.39%, Tier 1 risk based ratio of 11.57%,  a total risk-based capital ratio of 14.71%, and a common equity Tier 1 ratio of 11.57%.  First Community’s ratio of tangible common shareholder’s equity to tangible assets was 9.78% at September 30, 2015, compared to 9.96% at December 31, 2014 and 9.78% at September 30, 2014.

About First Community Financial Partners, Inc.: First Community Financial Partners, Inc., headquartered in Joliet, Illinois, is a bank holding company whose common stock trades on the NASDAQ Capital Market (NASDAQ:FCFP). First Community Financial Partners has one bank subsidiary, First Community Financial Bank. First Community Financial Bank, based in Plainfield, Illinois, is a wholly owned banking subsidiary of First Community Financial Partners, with locations in Joliet, Plainfield, Homer Glen, Channahon, Naperville and Burr Ridge, Illinois. The Bank is dedicated to its founding principles by being actively involved in the communities it serves and providing exceptional personal service delivered by experienced local professionals.

Special Note Concerning Forward-Looking Statements

Any statements in this release other than statements of historical facts, including statements about management’s beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. Words such as “estimate,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “should,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Forward-looking statements (including oral representations) involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. These risks and uncertainties involve a number of factors related to the businesses of First Community and its wholly owned bank subsidiary, including: risks associated with First Community’s possible pursuit of acquisitions; economic conditions in First Community’s, and its wholly owned bank subsidiary’s; service areas; system failures; losses of large customers; disruptions in relationships with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management personnel in the future; the impact of legislation and regulatory changes on the banking industry, including the implementation of the Basel III capital reforms; losses related to cyber-attacks; and liability and compliance costs regarding banking regulations. These and other risks and uncertainties are discussed in more detail in First Community’s filings with the Securities and Exchange Commission, including First Community’s Annual Report on Form 10-K filed on March 13, 2015.

Many of these risks are beyond management’s ability to control or predict. All forward-looking statements attributable to First Community, and its wholly owned bank subsidiary, or persons acting on behalf of each of them are expressly qualified in their entirety by the cautionary statements and risk factors contained in this communication. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, First Community does not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

FINANCIAL SUMMARY      
  Three months ended
September 30,
Nine months ended
September 30,
  2015 2014 2015 2014
Interest income: (In thousands, except per share data)(Unaudited)
Loans, including fees $ 8,218   $ 7,988   $ 24,124   $ 23,738  
Securities 1,103   848   3,017   2,261  
Federal funds sold and other 19   23   47   62  
Total interest  income 9,340   8,859   27,188   26,061  
Interest expense:        
Deposits 973   1,130   2,937   3,400  
Federal funds purchased and other borrowed funds 98   16   129   50  
Subordinated debt 297   432   1,503   1,295  
Total interest expense 1,368   1,578   4,569   4,745  
Net interest income 7,972   7,281   22,619   21,316  
Provision for loan losses (813 )   (1,562 ) 2,667  
Net interest income after provision for loan losses 8,785   7,281   24,181   18,649  
Noninterest income:        
Service charges on deposit accounts 188   210   565   492  
Gain on sale of loans       32  
Gain on foreclosed assets, net       19  
Gain on sale of securities 251   407   272   446  
Mortgage fee income 178   196   435   336  
Other 152   153   465   1,106  
Total noninterest income 769   966   1,737   2,431  
Noninterest expenses:        
Salaries and employee benefits 2,841   2,812   8,535   8,452  
Occupancy and equipment expense 486   543   1,483   1,607  
Data processing 248   238   710   715  
Professional fees 342   345   1,134   1,044  
Advertising and business development 217   223   633   563  
Losses on sale and writedowns of foreclosed assets, net 58   78   78   447  
Foreclosed assets, net of rental income (61 ) 55   80   190  
Other expense 1,005   794   2,840   2,144  
Total noninterest expense 5,136   5,088   15,493   15,162  
Income before income taxes 4,418   3,159   10,425   5,918  
Income taxes 1,471   1,149   3,527   1,936  
Net income attributable to First Community Financial Partners 2,947   2,010   6,898   3,982  
Dividends and accretion on preferred shares   (145 )   (433 )
Net income applicable to common shareholders $ 2,947   $ 1,865   $ 6,898   $ 3,549  
         
Basic earnings per share $ 0.17   $ 0.11   $ 0.41   $ 0.22  
         
Diluted earnings per share $ 0.17   $ 0.11   $ 0.40   $ 0.21  

FINANCIAL SUMMARY        
           
  September 30,
2015
  December 31,
2014
  September 30,
2014
Period-End Balance Sheet          
(Dollars in thousands)(Unaudited)          
Assets          
Mortgage loans held for sale $     $ 738     $  
Construction and land development 19,451     18,700     15,898  
Farmland and agricultural production 8,984     9,350     9,393  
Residential 1-4 family 126,316     100,773     100,716  
Multifamily 30,771     24,426     24,496  
Commercial real estate 368,896     353,973     353,456  
Commercial 180,674     171,452     176,627  
Consumer and other 7,963     10,519     8,558  
Total loans 743,055     689,193     689,144  
Allowance for credit losses 11,753     13,905     13,871  
Net loans 731,302     675,288     675,273  
Investment securities 217,194     170,054     157,094  
Other earning assets 25,743     23,990     31,581  
Other non-earning assets 49,193     54,005     53,943  
Total Assets $ 1,023,432     $ 924,075     $ 917,891  
           
Liabilities and Shareholders’ Equity        
Noninterest bearing deposits $ 174,849     $ 158,329     $ 140,252  
Savings deposits 34,933     30,211     27,546  
NOW accounts 101,828     73,755     75,383  
Money market accounts 232,195     196,222     190,037  
Time deposits 302,892     310,893     324,897  
Total deposits 846,697     769,410     758,115  
Total borrowings 72,551     58,662     59,832  
Other liabilities 4,065     3,950     3,963  
Total Liabilities 923,313     832,022     821,910  
Shareholders’ equity – preferred         6,233  
Shareholders’ equity – common 100,119     92,053     89,748  
Total Shareholders’ Equity 100,119     92,053     95,981  
Total Liabilities and Shareholders’ Equity $ 1,023,432     $ 924,075     $ 917,891  

COMMON STOCK DATA        
           
  2015 2014
  Third Quarter   Fourth Quarter   Third Quarter
           
Market value (1):          
End of period $ 6.51     $ 5.20     $ 4.73  
High 7.00     5.43     4.78  
Low 6.25     4.60     4.30  
Book value (end of period) 5.88     5.52     5.80  
Tangible book value (end of period) 5.88     5.52     5.42  
Shares outstanding 17,017,441     16,668,002     16,552,063  
Average shares outstanding 16,993,822     16,563,405     16,549,096  
Average diluted shares outstanding 17,161,783     16,800,247     16,770,189  

(1)  The prices shown are as reported on the OTC Pink Marketplace other than for the third quarter of 2015, which are as reported on the NASDAQ Capital Market.

INVESTMENT PORTFOLIO                    
(Dollars in thousands)(Unaudited)                    
  As of September 30, 2015
  Cost   Unrealized
Gains
  Unrealized
Loss
  Fair Value   Yield (%)   Duration
(Years)
                       
Investment Securities                      
Government sponsored enterprises $ 26,754     $ 383     $     $ 27,137     1.73 %   3.21  
Residential collateralized mortgage obligations 61,325     419     111     61,633     2.22 %   3.33  
Residential mortgage backed securities 29,286     205     49     29,442     1.86 %   3.52  
State and political subdivisions 96,518     1,425     328     97,615     2.55 %   4.69  
Total debt securities 213,883     2,432     488     215,827     2.26 %   4.31  
Federal Home Loan Bank stock 1,367             1,367     %    
Total Investment Securities $ 215,250     $ 2,432     $ 488     $ 217,194     2.26 %   4.31  
                       
(Dollars in thousands) As of December 31, 2014
  Cost   Unrealized
Gains
  Unrealized
Loss
  Fair Value   Yield (%)   Duration
(Years)
                       
Investment Securities                      
Government sponsored enterprises $ 30,904     $ 83     $ 36     $ 30,951     1.69 %   2.80  
Residential collateralized mortgage obligations 44,095     241     62     44,274     2.35 %   2.71  
Residential mortgage backed securities 27,208     137     128     27,217     2.26 %   4.10  
State and political subdivisions 65,240     1,096     91     66,245     2.48 %   4.16  
Total debt securities 167,447     1,557     317     168,687     2.27 %   3.85  
Federal Home Loan Bank stock 1,367             1,367     %    
Total Investment Securities $ 168,814     $ 1,557     $ 317     $ 170,054     2.27 %   3.85  

ASSET QUALITY DATA          
     
  September 30,
2015
  December 31,
2014
  September 30,
2014
(Dollars in thousands)(Unaudited)          
Loans identified as nonperforming $ 3,117     $ 6,947     9,065  
Other nonperforming loans 55     50      
Total nonperforming loans 3,172     6,997     9,065  
Foreclosed assets 4,109     2,530     3,489  
Total nonperforming assets $ 7,281     $ 9,527     $ 12,554  
           
Allowance for loan losses losses 11,753     13,905     13,871  
Nonperforming assets to total assets 0.71 %   1.03 %   1.37 %
Nonperforming loans to total assets 0.31 %   0.76 %   0.99 %
Allowance for loan losses to nonperforming loans 370.52 %   198.73 %   153.02 %

Allowance for loan losses rollforward:    
  Three months ended
September 30,
  Nine months ended
September 30,
  2015   2014   2015   2014
Beginning balance $ 12,420     $ 14,383     $ 13,905     $ 15,820  
Charge-offs 654     659     1,725     5,761  
Recoveries 800     147     1,137     1,145  
Net charge-offs (146 )   512     588     4,616  
Provision for loan losses (813 )       (1,562 )   2,667  
Ending Balance $ 11,753     $ 13,871     $ 11,755     $ 13,871  
               
Net charge-offs (146 )   512     588     4,616  
Net chargeoff percentage (annualized) (0.08 )%   0.30 %   0.16 %   1.38 %

OTHER DATA (1)              
               
  For the three months ended,   For the nine months ended,
  September 30,
2015
  September 30,
2014
  September 30,
2015
  September 30,
2014
Return on average assets 1.17 %   0.81 %   0.94 %   0.53 %
Return on average equity 12.01 %   7.81 %   9.59 %   5.04 %
Net yield on earning assets 3.31 %   3.34 %   4.88 %   3.36 %
Average loans to assets 72.37 %   73.51 %   73.70 %   74.77 %
Average loans to deposits 86.63 %   88.19 %   87.62 %   90.30 %
Average noninterest bearing deposits to total deposits 20.79 %   15.83 %   20.17 %   15.68 %
Average equity to assets 9.59 %   15.54 %   9.64 %   10.54 %
               
COMPANY CAPITAL RATIOS              
(Dollars in thousands) September 30,
2015
  December 31,
2014
  September 30,
2014
   
Tier 1 leverage ratio 9.24 %   8.55 %   9.78 %    
Common equity tier 1 capital ratio 11.20 %     n/a       n/a      
Tier 1 capital ratio 11.20 %   10.27 %   10.37 %    
Total capital ratio 14.39 %   15.28 %   14.64 %    
Tangible common equity $ 100,119     $ 92,053     $ 89,748      

(1)  The September 30, 2015 capital ratios are calculated under the Basel III capital rules that became effective on January 1, 2015. Prior period capital ratios were calculated under the prompt corrective action capital rules that were in effect for those periods.

 

OTHER NON-GAAP MEASURES            
               
Pre-tax pre-provision core income (1)            
(Dollars in thousands)              
               
  Three months ended   Nine months ended
  September 30,
2015
  September 30,
2014
  September 30,
2015
  September 30,
2014
               
Pre-tax net income $ 4,418     $ 3,159     $ 10,425     $ 5,918  
Provision for loan losses (813 )       (1,562 )   2,667  
Gain on sale of investment securities (251 )   (407 )   (272 )     (446 )
Gain on sale of foreclosed assets             (19 )
Bank owned life insurance gain             (483 )
Losses on sale and writedowns of foreclosed assets, net 58     78     78     447  
Foreclosed assets, net of rental income (61 )   55     80     190  
Adjusted pre-tax pre-provision core income $ 3,351     $ 2,885     $ 8,749     $ 8,274  

(1)  This is a non-GAAP financial measure.  The Company’s management believes the presentation of pre-tax pre-provision core net operating income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP.

 

CONTACT: Contact: 
Glen L. Stiteley, Chief Financial Officer
(815) 725-1885

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