STURGEON BAY, Wis.,
Jan. 28, 2016 /PRNewswire/ -- Baylake
Corp. (the "Company"), (NASDAQ:BYLK) today reported net income of
$1.1 million, or $0.12 per diluted share, for the quarter ended
December 31, 2015, compared with
$2.2 million, or $0.24 per diluted share, for the same quarter of
2014. Net income was $8.0
million, or $0.85 per diluted
share, for the year ended December 31,
2015 compared with $8.9
million or $0.97 per diluted
share, for the prior year. The Company is the holding company
for Baylake Bank (the "Bank"), which provides full service banking
and financial services from 23 locations in northeast Wisconsin.
FOURTH QUARTER HIGHLIGHTS
- Acquisition of NEW Bancshares and Union State Bank
completed. On December 4, 2015,
the Company completed its acquisition of NEW Bancshares, Inc.
("NEW") and NEW's wholly-owned subsidiary, Union State Bank. As
part of the transaction, the Company acquired loans of
approximately $46.6 million,
investment securities of $24.4
million, and deposits of $68.5
million.
- Previously announced merger. On September 8, 2015, the Company announced the
signing of a definitive merger agreement with Nicolet Bankshares,
Inc. ("Nicolet"), (OTCQB: NCBS) under which the Company will merge
with and into Nicolet to create the largest publicly-traded
Wisconsin community bank
headquartered north of Milwaukee. Based on December 31, 2015 financial results, the combined
company would have total assets of approximately $2.3 billion, deposits of approximately
$1.9 billion and loans of
approximately $1.6 billion. The
merger transaction is expected to close in the second quarter of
2016 and is subject to customary closing conditions, including
approval by shareholders of each company and regulatory
approvals.
- Net income. Net income was $1.1
million for the fourth quarter ended December 31, 2015, which reflected $1.2 million of employee severance costs, broker
fees, legal, accounting and other transaction costs related to the
acquisition of NEW and the pending merger with Nicolet, as well as
$0.3 million of other one-time
expenses related to fixed asset write-downs, partially offset by a
$0.1 million insurance reimbursement
for a $0.2 million unauthorized wire
loss incurred in the third quarter of 2015. In addition, due
to the non-deductibility or partial deductibility of several
merger-related expenses, income tax expense was $0.3 million higher in the fourth quarter of 2015
thus further reducing net income compared to the same quarter of
2014.
- Net interest income increase. Net interest income
increased for the fourth quarter and full year of 2015 compared to
the same periods in 2014. Net interest income increased from
$8.2 million in the fourth quarter of
2014 to $8.5 million for the same
period in 2015. Net interest income increased from
$31.4 million for the year ended
December 31, 2014 to $32.6 million for the year ended December 31, 2015.
- Strong loan growth. Gross loans increased 9% on a
year-over-year basis including $46.6
million of additional loan balances acquired in the NEW
acquisition. Excluding the NEW loans, organic loan growth was
2.5%.
- Asset quality improved. Non-performing assets declined
$3.5 million, or 37%, year-over-year
to $5.9 million at December 31, 2015 compared to $9.4 million at December
31, 2014. Non-accrual loans declined $2.9 million, or 57%, year-over-year to
$2.2 million at December 31, 2015 compared to $5.1 million at December
31, 2014.
- Solid Capital. Capital ratios continue to exceed
regulatory standards for well capitalized institutions. The Bank's
strong capital position is evidenced by a Tier 1 leverage ratio of
11.56%, total risk based capital ratio of 15.11%, and a Tier 1
risk-based capital ratio of 14.39% at December 31, 2015. As of the same date, the
shareholder equity-to-assets ratio was 10.45%, compared to 10.33%
at December 31, 2014.
"Excluding the merger related costs and one-time expenses
incurred during the fourth quarter of 2015, our core results were
consistent with our expectations for the quarter," commented
Robert J. Cera, President and CEO.
"With the successful completion of the NEW acquisition in
December 2015, we are turning our
focus to the pending merger with Nicolet while continuing to be
firmly committed to meeting our customers' financial needs and
developing stronger and new relationships in the markets we
serve."
Income Statement Summary
The Company's financial performance resulted in a return on
average assets ("ROAA") of 0.44% and 0.80% for the three and twelve
months ended December 31, 2015,
respectively. The return on average equity ("ROAE") was 4.0%
and 7.3% respectively for the same periods. Results for both
periods were negatively impacted by merger-related expenses as well
as fixed asset write-downs. Total interest income for the
fourth quarter of 2015 was $9.2
million, increased from $8.9
million for the fourth quarter of 2014 and from the
$8.6 million for the three months
ended September 30, 2015. Total
interest expense declined to $0.6
million for the fourth quarter of 2015, compared to
$0.7 million for the fourth quarter
of 2014 and was consistent with the $0.6
million for the quarter ended September 30, 2015. Net interest income
before the loan loss provision increased to $8.5 million for the fourth quarter of 2015,
compared to $8.2 million for the
fourth quarter of 2014 and $8.0
million for the quarter ended September 30, 2015.
The net interest margin for the fourth quarter of 2015 was
3.69%, compared with 3.74% for the fourth quarter of 2014 and 3.52%
for the third quarter of 2015. The increase in net interest
margin during the fourth quarter of 2015 compared to the third
quarter of 2015 was primarily due to non-recurring prepayment
penalties received on loans in the fourth quarter. The
Company's total cost of interest bearing liabilities was 0.35% for
the quarter ended December 31, 2015,
compared to 0.36% for the same period of 2014 and was consistent
with 0.35% for the third quarter of 2015. For the three and twelve
months ended December 31, 2015, the
average loan-to-deposit ratio was 87.3% and 88.5%, respectively,
compared to 87.5% and 86.3%, respectively, for the three and twelve
months ended December 31, 2014,
reflecting the Company's continuing focus on balance sheet
efficiency.
There was no loan loss provision recorded in the fourth quarter
of either 2015 or 2014, reflective of continued improved loan
portfolio quality.
Total non-interest income for the fourth quarter of 2015 was
$2.5 million; down from $2.6 million from the fourth quarter of 2014
primarily due to a decrease of $0.1
million in gains from the sale of securities.
Non-interest expense was $9.1
million for the fourth quarter of 2015, compared to
$8.1 million for the fourth quarter
of 2014 reflecting $1.2 million of
expenses incurred related to the acquisition of NEW and the pending
merger with Nicolet, including employee severance costs, broker
fees, legal, accounting and other transaction costs. Salaries and
employee benefits expense of $5.3
million for the fourth quarter of 2015 was $0.8 million higher than the $4.5 million reported in the similar period last
year. Included in the increase was $0.4 million of costs related to the departure of
a senior executive of the Company in anticipation of the pending
merger with Nicolet and a $0.2
million increase in expense related to the Company's
performance-based incentive program. Increased staffing
levels from a year ago accounted for a majority of the remaining
increase. Other outside services increased $0.6 million during the fourth quarter of 2015
compared to the same period of 2014 primarily due to $0.3 million of broker fees related to the NEW
acquisition and $0.2 million of other
merger-related expenses. Other operating expense increased
$0.2 million during the fourth
quarter of 2015 compared to the fourth quarter of 2014 primarily
due to $0.3 million of other one-time
non-interest expenses related to fixed asset write-downs, partially
offset by a $0.1 million insurance
reimbursement for a $0.2 million
unauthorized wire loss incurred in the third quarter of 2015.
Expenses for 2014 included a one-time after-tax expense of
$0.7 million related to the United
Financial Services reorganization and related professional fees
that occurred in the fourth quarter of 2014.
Balance Sheet Summary
At December 31, 2015, total assets
were $1.1 billion compared with
$1.0 billion at both December 31, 2014 and September 30, 2015. Compared to
December 31, 2014, investment
securities decreased from $208.5
million, or 20.4% of total assets, to $198.1 million at December
31, 2015, or 18.1% of total assets. During the fourth
quarter of 2015, $24.4 million of
securities were acquired in the NEW acquisition which was more than
offset by proceeds received from the sales, paydowns, and
maturities of investment securities which proceeds were used
primarily to fund loan growth and reduce
borrowings. Borrowings declined to $89.7 million at December
31, 2015 from $125.3 million
at December 31, 2014. Over the
same time period, total deposits increased to $866.2 million at December
31, 2015, compared to $765.5
million at December 31, 2014
including $68.5 million of deposit
balances acquired in the NEW acquisition.
Total gross loans increased $64.0
million, or 9.4%, to $743.4
million at December 31, 2015
from $679.4 million at December 31, 2014. Included in the increase
were $46.6 million of loan balances
acquired in the NEW acquisition. Excluding the acquired loans,
loan growth totaled $17.2 million, or
2.5%. At December 31, 2015,
total loans comprised 68.0% of total assets compared with 66.5% at
December 31, 2014.
Capital ratios continue to exceed regulatory standards for well
capitalized institutions. The Bank's strong capital position
is evidenced by a Tier 1 leverage ratio of 11.56%, total risk based
capital ratio of 15.11%, and a Tier 1 risk-based capital ratio of
14.39% at December 31, 2015. As
of the same date, the shareholder equity-to-assets ratio was
10.45%, compared to 10.33% at December
31, 2014.
The ROA, ROAE and other performance metrics at December 31, 2015, include 285,905 shares of
common equity issued in the acquisition of NEW. The Company's
shareholders' equity of $114.3
million at December 31, 2015
includes the full stock impact of conversion of the total
$9.5 million of convertible
debentures issued in 2009 and 2010. Cera commented, "We are
pleased to highlight that book value per share increased
year-over-year to $11.89 per share at
December 31, 2015 compared to
$11.65 per share at prior year end,
despite issuance of additional shares relating to the NEW
acquisition. We continue to strive to provide superior value for
both our shareholders and customers alike."
Asset Quality Summary
Asset quality improved at December 31,
2015 compared to December 31,
2014. Total non-performing assets, which includes both
non-performing loans and other real estate owned, declined to
$5.9 million at December 31, 2015 from $9.4 million at December
31, 2014. The ratio of non-performing assets to total
assets was 0.54% at December 31, 2015
compared to 0.92% at December 31,
2014.
Non-performing loans were $2.2
million at December 31, 2015,
decreased from $5.1 million at
December 31, 2014. The ratio of
non-performing loans to total loans decreased to 0.3% at
December 31, 2015 from 0.8% at
December 31, 2014. The Company's
allowance for loan losses to non-performing loans ratio increased
to 267.3% at December 31, 2015,
compared to 136.8% at December 31,
2014, however, the allowance for loan losses to total loans
ratio declined to 0.79% at December 31,
2015, compared to 1.04% at the end of 2014. Loans
acquired in the NEW acquisition were recorded at fair
value. There was no subsequent credit deterioration related to
these loans and therefore no allowance was allocated to these loans
at December 31, 2015.
Other
The Company paid a cash dividend of $0.09 per share during the fourth quarter of
2015, consistent with the third quarter of 2015 and increased from
$0.08 per share paid in the second
quarter of 2015.
As previously disclosed, the Company announced on September 8, 2015 that it had entered into a
stock-based merger agreement with Nicolet. Nicolet is the bank
holding company of Nicolet National
Bank ("Nicolet Bank"), a
growing, full-service, community bank providing services ranging
from commercial and consumer banking to wealth management and
retirement plan services. Founded in Green Bay in 2000, Nicolet Bank operates branches in Northeast and
Central Wisconsin and the upper
peninsula of Michigan. More information can be found at
www.nicoletbank.com. Based on December
31, 2015 financial results, the combined company would have
total assets of approximately $2.3
billion, deposits of $1.9
billion and loans of $1.6
billion. The merger transaction is expected to close in
the second quarter of 2016 and is subject to customary closing
conditions, including approval by shareholders of each company and
regulatory approvals.
Baylake Corp., headquartered in Sturgeon Bay, Wisconsin, is the bank holding
company for Baylake Bank. Through Baylake Bank, Baylake Corp.
provides a variety of banking and financial services from 20
financial centers located throughout Northeast Wisconsin, in Brown, Door,
Kewaunee, and Outagamie Counties.
The following appears in accordance with the Private Securities
Litigation Reform Act of 1995:
This press release contains both financial measures based on
accounting principles generally accepted in the United States (GAAP) and non-GAAP based
financial measures, which are used where management believes it to
be helpful in understanding the Company's results of operations or
financial position and in comparing the Company's results of
operations and financial position over different
periods. Where non-GAAP financial measures are used, the
comparable GAAP financial measure, as well as the reconciliation to
the comparable GAAP financial measure, can be found in this press
release. These disclosures should not be viewed as a substitute for
operating results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies.
Important Information for Investors
This communication discusses the proposed merger transaction
involving the Company and Nicolet. In connection with the propose
merger, the Company and Nicolet have filed a preliminary joint
proxy statement/prospectus on Form S-4 and other relevant documents
concerning the merger with the Securities and Exchange Commission
(the "SEC"). BEFORE MAKING ANY VOTING OR INVESTMENT DECISION,
INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT /PROSPECTUS
AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH
THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY
STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE COMPANY, NICOLET AND THE PROPOSED MERGER.
The Company, Nicolet and certain of their directors, executive
officers and other members of management and employees may be
deemed to be participants in the solicitation of proxies from the
shareholders of Nicolet and the shareholders of the Company in
connection with the proposed merger. Information about the
directors and executive officers of the Company and Nicolet will be
included in the joint proxy statement/prospectus for the proposed
transactions filed with the SEC. Information about the directors
and executive officers of the Company is also included in the proxy
statement for its 2015 annual meeting of shareholders, which was
filed with the SEC on April 24, 2015.
Information about the directors and executive officers of Nicolet
is also included in its annual report on Form 10-K for the year
ended December 31, 2014, which was
filed with the SEC on March 9,
2015. Additional information regarding the interests of such
participants and other persons who may be deemed participants in
the transaction will be included in the joint proxy
statement/prospectus and the other relevant documents filed with
the SEC when they become available.
Forward-Looking Statements
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995.
This report contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
which Congress passed in an effort to encourage companies to
provide information about their anticipated future financial
performance. This act protects a company from unwarranted
litigation if actual results are different from management
expectations. This report reflects the current views and
estimates of future economic circumstances, industry conditions,
company performance, and financial results of the management of
Baylake and Nicolet. These forward-looking statements are
subject to a number of factors and uncertainties which could cause
Baylake's, Nicolet's or the combined company's actual results and
experience to differ from the anticipated results and expectations
expressed in such forward-looking statements, and such differences
may be material. Forward-looking statements speak only as of
the date they are made and neither Baylake nor Nicolet assumes any
duty to update forward-looking statements. There are a number of
factors that could cause our actual results to differ materially
from those projected in such forward-looking statements.
In addition to factors previously disclosed in Baylake's and
Nicolet's reports filed with the SEC and those identified elsewhere
in this report, these forward-looking statements include, but are
not limited to, statements about (i) the expected benefits of the
transaction between Baylake and Nicolet and between Baylake Bank
and Nicolet National Bank, including
future financial and operating results, cost savings, enhanced
revenues and the expected market position of the combined company
that may be realized from the transaction, and (ii) Baylake's and
Nicolet's plans, objectives, expectations and intentions and other
statements contained in this report that are not historical
facts. Other statements identified by words such as
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "targets," "projects" or words of similar meaning
generally are intended to identify forward-looking
statements. These statements are based upon the current
beliefs and expectations of Baylake's and Nicolet's management and
are inherently subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond their
respective control. In addition, these forward-looking
statements are subject to assumptions with respect to future
business strategies and decisions that are subject to change.
Actual results may differ from those indicated or implied in the
forward-looking statements and such differences may be
material.
The following risks, among others, could cause actual results to
differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: (1) the
businesses of Baylake and Nicolet may not integrate successfully or
the integration may be more difficult, time-consuming or costly
than expected; (2) the expected growth opportunities and cost
savings from the transaction may not be fully realized or may take
longer to realize than expected; (3) revenues following the
transaction may be lower than expected as a result of losses of
customers or other reasons, including issues arising in connection
with integration of the two banks; (4) deposit attrition, operating
costs, customer loss and business disruption following the
transaction, including difficulties in maintaining relationships
with employees, may be greater than expected; (5) governmental
approvals of the transaction may not be obtained on the proposed
terms or expected timeframe; (6) the terms of the proposed
transaction may need to be modified to satisfy such approvals or
conditions; (7) Baylake's shareholders or Nicolet's
shareholders may fail to approve the transaction; (8) reputational
risks and the reaction of the companies' customers to the
transaction; (9) diversion of management time on merger related
issues; (10) changes in asset quality and credit risk; (11) the
cost and availability of capital; (12) customer acceptance of the
combined company's products and services; (13) customer borrowing,
repayment, investment and deposit practices; (14) the introduction,
withdrawal, success and timing of business initiatives; (15) the
impact, extent, and timing of technological changes; (16) severe
catastrophic events in Baylake's or Nicolet's geographic area; (17)
a weakening of the economies in which the combined company will
conduct operations may adversely affect its operating results; (18)
the U.S. legal and regulatory framework, including those associated
with the Dodd Frank Wall Street Reform and Consumer Protection Act,
could adversely affect the operating results of the combined
company; (19) the interest rate environment may compress margins
and adversely affect net interest income; and (20) competition from
other financial services companies in the companies' markets could
adversely affect operations. Additional factors that could
cause Baylake's results to differ materially from those described
in the forward-looking statements can be found in Baylake's reports
(such as Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K) filed with the SEC and
available at the SEC's website (www.sec.gov). Additional
factors that could cause Nicolet's results to differ materially
from those described in the forward-looking statements can be found
in Nicolet's reports (such as Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K)
filed with the SEC and available at the SEC's website
(www.sec.gov). All subsequent written and oral
forward-looking statements concerning Baylake, Nicolet or the
proposed merger or other matters and attributable to Baylake,
Nicolet or any person acting on either of their behalf are
expressly qualified in their entirety by the cautionary statements
above. Baylake and Nicolet do not undertake any obligation to
update any forward-looking statement, whether written or oral, to
reflect circumstances or events that occur after the date the
forward-looking statements are made.
Baylake Corp. and Subsidiaries
Summary Financial
Data
The following tables set forth selected consolidated financial
and other data for Baylake Corp. at the dates and for the periods
indicated. The selected consolidated financial and other data
at December 31, 2015 has not been
audited, but in the opinion of management of Baylake Corp. reflects
all necessary adjustments for a fair presentation of results as of
the dates and for the periods covered.
Selected Financial
Condition Data
(at end of period)
December 31, 2015 numbers are UNAUDITED
|
December 31,
2015
|
December 31,
2014
|
|
(dollars
in thousands except per share data)
|
|
(Unaudited)
|
|
Total
assets
|
$ 1,093,917
|
$ 1,021,623
|
|
Investment securities
(1)
|
198,095
|
208,524
|
|
Total gross
loans
|
743,381
|
679,357
|
|
Total
deposits
|
866,195
|
765,542
|
|
Borrowings
(2)
|
89,722
|
125,324
|
|
Subordinated
debentures
|
16,100
|
16,100
|
|
Convertible
debentures
|
-
|
1,650
|
|
Stockholders'
equity
|
114,349
|
105,504
|
|
Non-performing loans
(3)
|
2,218
|
5,155
|
|
Non-performing assets
(3)
|
5,928
|
9,421
|
|
Restructured loans,
accruing
|
8,357
|
8,656
|
|
|
|
|
|
Shares
outstanding
|
9,620,348
|
9,054,821
|
|
Book value per
share
|
$
11.89
|
$
11.65
|
|
Tangible book value
per share
|
$
10.94
|
$
10.84
|
|
|
As of and for the
Three Months Ended
|
|
As of and for the
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
(dollars in
thousands, except per share data)
|
|
(dollars in
thousands, except per share data)
|
|
|
|
|
|
|
Selected
Operations Data
|
2015
|
2014
|
|
2015
|
2014
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Total interest
income
|
$ 9,171
|
$ 8,895
|
|
$ 35,275
|
$ 34,743
|
Total interest
expense
|
641
|
659
|
|
2,635
|
3,313
|
Net interest income
before provision for loan losses
|
8,530
|
8,236
|
|
32,640
|
31,430
|
Provision for loan
losses
|
-
|
-
|
|
200
|
-
|
Net interest income
after provision for loan losses
|
8,530
|
8,236
|
|
32,440
|
31,430
|
|
|
|
|
|
|
Total non-interest
income
|
2,465
|
2,556
|
|
9,696
|
9,067
|
Total non-interest
expense
|
9,141
|
8,052
|
|
30,410
|
28,322
|
|
|
|
|
|
|
Income before income
taxes
|
1,854
|
2,740
|
|
11,726
|
12,175
|
Income tax
expense
|
717
|
498
|
|
3,709
|
3,252
|
Net income
|
$
1,137
|
$
2,242
|
|
$
8,017
|
$
8,923
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
As of and for the
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
2014
|
|
2015
|
2014
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Selected
Operations Data
|
|
|
|
|
|
Per Share
Data: (4)
|
|
|
|
|
|
Net income per share
(basic)
|
$ 0.12
|
$ 0.25
|
|
$ 0.86
|
$ 1.07
|
Net income per share
(diluted)
|
$ 0.12
|
$ 0.24
|
|
$ 0.85
|
$ 0.97
|
Cash dividends per
common share
|
$ 0.09
|
$ 0.08
|
|
$ 0.34
|
$ 0.30
|
Book value per
share
|
$ 11.89
|
$ 11.65
|
|
$ 11.89
|
$ 11.65
|
|
|
|
|
|
|
Performance
Ratios: (5)
|
|
|
|
|
|
Return on average
total assets
|
0.44%
|
0.90%
|
|
0.80%
|
0.91%
|
Return on average
total shareholders' equity
|
4.03%
|
8.46%
|
|
7.34%
|
8.99%
|
Net interest margin
(6)
|
3.69%
|
3.74%
|
|
3.66%
|
3.63%
|
Net interest spread
(6)
|
3.61%
|
3.67%
|
|
3.58%
|
3.55%
|
Efficiency ratio
(9)
|
81.90%
|
68.19%
|
|
70.57%
|
67.30%
|
Non-interest income
to average assets
|
0.95%
|
1.03%
|
|
0.97%
|
0.93%
|
Non-interest expense
to average assets
|
3.52%
|
3.24%
|
|
3.03%
|
2.89%
|
Net overhead ratio
(7)
|
2.57%
|
2.21%
|
|
2.06%
|
1.96%
|
Average
loan-to-average deposit ratio
|
87.31%
|
87.53%
|
|
88.51%
|
86.29%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
130.62%
|
125.69%
|
|
127.52%
|
121.98%
|
|
|
|
|
|
|
Asset Quality
Ratios: (3)(5)
|
|
|
|
|
|
Non-performing loans
to total loans
|
0.30%
|
0.76%
|
|
0.30%
|
0.76%
|
Allowance for loan
losses to:
|
|
|
|
|
|
Total loans
|
0.79%
|
1.04%
|
|
0.79%
|
1.04%
|
Non-performing
loans
|
267.27%
|
136.78%
|
|
267.27%
|
136.78%
|
Net charge-offs to
average loans (annualized)
|
0.33%
|
0.20%
|
|
0.19%
|
0.10%
|
Non-performing assets
to total assets
|
0.54%
|
0.92%
|
|
0.54%
|
0.92%
|
|
|
|
|
|
|
Capital
Ratios: (5)(8)
|
|
|
|
|
|
Stockholders' equity
to assets
|
10.45%
|
10.33%
|
|
10.45%
|
10.33%
|
Tier 1 common equity
(10)
|
12.59%
|
n/a
|
|
12.59%
|
n/a
|
Tier 1 risk-based
capital
|
14.39%
|
14.96%
|
|
14.39%
|
14.96%
|
Total risk-based
capital
|
15.11%
|
16.14%
|
|
15.11%
|
16.14%
|
Tier 1 leverage
ratio
|
11.56%
|
11.26%
|
|
11.56%
|
11.26%
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
Number of bank
subsidiaries
|
1
|
1
|
|
1
|
1
|
Number of banking
facilities
|
23
|
21
|
|
23
|
21
|
Number of full-time
equivalent employees
|
244
|
243
|
|
244
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
Three Months Ended
|
|
As of and for the
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
(dollars in
thousands)
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
Efficiency Ratio:
GAAP to Non-GAAP reconciliation: (9)
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Non-interest
Expense
|
$ 9,141
|
$ 8,052
|
|
$ 30,410
|
$ 28,322
|
|
Less: Payment under
UFS tax strategy make-whole agreement
|
-
|
661
|
|
163
|
661
|
|
Non-interest Expense
(non-GAAP)
|
$
9,141
|
$
7,391
|
|
$
30,247
|
$
27,661
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$ 8,530
|
$ 8,236
|
|
$ 32,640
|
$ 31,430
|
|
Plus: Tax equivalent
adjustment relating to tax exempt loans and investment
securities
|
246
|
260
|
|
1,001
|
1,052
|
|
Non-interest Income
(non-GAAP)
|
$
8,776
|
$
8,496
|
|
$
33,641
|
$
32,482
|
|
|
|
|
|
|
|
|
Non-interest
Income
|
$ 2,465
|
$ 2,556
|
|
$ 9,696
|
$ 9,067
|
|
Less: net gains on
sale of investments
|
81
|
214
|
|
465
|
446
|
|
Less: net gains on
disposal of fixed assets
|
(1)
|
-
|
|
11
|
1
|
|
Non-interest Income
(non-GAAP)
|
$
2,385
|
$
2,342
|
|
$
9,220
|
$
8,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
83.14%
|
74.61%
|
|
71.83%
|
69.94%
|
|
Efficiency Ratio
(non-GAAP) – tax equivalent
|
81.90%
|
68.19%
|
|
70.57%
|
67.30%
|
|
|
|
(1)
|
Includes securities
classified as available for sale.
|
(2)
|
Consists of Federal
Home Loan Bank advances, federal funds purchased, and
collateralized borrowings.
|
(3)
|
Non-performing loans
consist of non-accrual loans and guaranteed loans 90 days or more
past due but still accruing interest. Non-performing assets consist
of non-performing loans and other real estate owned.
|
(4)
|
Earnings per share
are based on the weighted average number of shares outstanding for
the period. Diluted earnings per share is based on the dilutive
effect of shares that would be issued if outstanding stock options
were exercised, stock awards were fully vested and promissory notes
were converted in addition to the weighted average number of shares
outstanding for the period.
|
(5)
|
With the exception of
end of period ratios, all ratios are based on average daily
balances and are annualized where appropriate.
|
(6)
|
Net interest margin
represents net interest income as a percentage of average
interest-earning assets. Net interest rate spread represents the
difference between the weighted average yield on interest-earning
assets and the weighted average cost of interest-bearing
liabilities.
|
(7)
|
Net overhead ratio
represents the difference between non-interest expense and
non-interest income, divided by average assets.
|
(8)
|
The capital ratios
are presented on a consolidated basis.
|
(9)
|
Efficiency ratio is
calculated as follows: non-interest expense less significant,
non-recurring expenses divided by the sum of tax-equivalent net
interest income plus non-interest income, excluding net investment
security gains, net gains on sale of fixed assets and land held for
sale and significant, non-recurring income items. This efficiency
ratio is presented on a tax-equivalent basis, which adjusts net
interest income for the tax-favored status of certain loans and
investment securities. Management believes this measure to be
the preferred industry measurement of net interest income as it
enhances the comparability of such income arising from both taxable
and non-taxable sources. However, as calculated, this
efficiency ratio is not considered to be in accordance with
Generally Accepted Accounting Principles ("GAAP") and as such, a
reconciliation of GAAP to non-GAAP is presented as well.
|
(10)
|
Calculated under
Basel lll regulations that became effective January 1,
2015.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/baylake-corp-announces-fourth-quarter-full-year-2015-financial-results-300211894.html
SOURCE Baylake Corp.