OREANDA-NEWS. Two River Bancorp (Nasdaq:TRCB) (the "Company"), the parent company of Two River Community Bank ("the Bank"), today reported financial results for the second quarter and six months ended June 30, 2016.

Second Quarter 2016 Operating and Financial Highlights

  • Net income available to common shareholders increased 19.4% to $1.73 million, or $0.21 per diluted share, up from $1.45 million, or $0.18 per diluted share, in the corresponding prior year’s quarter.
  • Non-interest income increased 23.9% to $1.2 million compared to the same period in 2015 as a result of higher mortgage banking revenue and gains on the sale of SBA loans.
  • Non-performing assets to total assets decreased to 0.22% at June 30, 2016, from 0.42% at December 31, 2015 and 0.75% at June 30, 2015.  During the second quarter of 2016, non-performing assets were reduced by $1.6 million, or 45.5%, from December 31, 2015.
  • Return on average assets (ROAA) was 0.78% for the second quarter of 2016, unchanged from the 0.78% for the previous quarter, but up from 0.71% for the same prior year’s quarter. 
  • Return on average equity (ROAE) was 7.28% for the three months ended June 30, 2016, compared to 7.25% for the previous quarter and 6.15% for the same prior year’s quarter.
  • Tangible book value per share was $9.81 at June 30, 2016, compared to $9.44 at December 31, 2015, and $9.09 at June 30, 2015.
  • Total assets at June 30, 2016 were $884.7 million, compared with $863.7 million at December 31, 2015.
  • Total loans as of June 30, 2016 increased $22.0 million, or 3.1% (12.5% annualized), from March 31, 2016 to $726.4 million, predominantly due to growth in both the commercial real estate and residential mortgage sectors.
  • Total deposits as of June 30, 2016 were $726.3 million, an increase of $17.8 million, or 2.5%, compared with $708.4 million as of December 31, 2015.  Core checking deposits at June 30, 2016 increased $3.7 million, or 1.3%, to $296.7 million from year-end 2015.

Management Commentary – Continued Loan Growth Driving Earnings
William D. Moss, President and CEO, stated, “The Company achieved higher net income in both the quarter and first half of 2016 as a result of solid loan growth, improvements in asset quality, and significantly higher non-interest income.  We have grown our loan portfolio by $33.3 million since year-end 2015, and are continuing to convert a strong pipeline developed by cultivating relationships at the local level within our core markets of Monmouth, Middlesex, Union and Ocean Counties.  Our strong commercial loan pipeline should drive future top line revenue growth as the year progresses.  Given our strategy and regional focus, we expect this growth to continue as we look for new loan production offices (LPOs) and evaluate our existing branch network while seeking out new locations in contiguous markets."

Mr. Moss continued, “The Company’s mortgage banking business and gain on sales of SBA loans led non-interest income to the highest quarterly total in our history during the period.  We are benefitting from our team’s exceptional relationships within a broad network of referral sources throughout our market.  We continue to focus on achieving solid growth in book value while continuing to provide enhanced returns to shareholders, as evidenced by the recent increase in our quarterly dividend."

Dividend Increased to $0.04 Per Share
On July 20, 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per share, payable August 30, 2016 to shareholders of record as of August 12, 2016.  This marks the 14th consecutive quarterly cash dividend paid by the Company to its shareholders and represents a 14.3% increase from the prior quarter. 

Key Quarterly Performance Metrics

    2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
2nd Qtr.		 6 Mo.
Ended 		6 Mo.
Ended
  2016 2016 2015 2015 2015  6/30/2016    6/30/2015  
Net Income (in thousands)   $ 1,727   $ 1,693   $ 1,751   $ 1,692   $ 1,461   $ 3,420   $ 2,904  
                               
Net Income Available to Common Shareholders (in thousands)   $ 1,727   $ 1,693   $ 1,739   $ 1,677   $ 1,446   $ 3,420   $ 2,874  
Earnings per Common Share – Diluted   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.18   $ 0.42   $ 0.35  
Return on Average Assets     0.78 %   0.78 %   0.81 %   0.79 %   0.71 %   0.78 %   0.72 %
Return on Average Tangible Assets (1)     0.80 %   0.80 %   0.83 %   0.80 %   0.73 %   0.80 %   0.74 %
Return on Average Equity     7.28 %   7.25 %   7.14 %   6.95 %   6.15 %   7.26 %   6.17 %
Return on Average Tangible Equity (1)     8.98 %   8.98 %   8.78 %   8.55 %   7.59 %   8.98 %   7.63 %
Net Interest Margin     3.57 %   3.57 %   3.65 %   3.65 %   3.65 %   3.57 %   3.71 %
Non-Performing Assets to Total Assets     0.22 %   0.22 %   0.42 %   0.50 %   0.75 %   0.22 %   0.75 %
Allowance as a % of Loans     1.30 %   1.27 %   1.26 %   1.25 %   1.23 %   1.30 %   1.23 %
 
(1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.
 

Loan Composition
The components of the Company’s loan portfolio at June 30, 2016 and December 31, 2015 are as follows:  

       
      (In Thousands)
      June 30,
2016		     December 31,
2015		  
Commercial and industrial     $   99,642     $ 100,154  
Real estate – construction       95,119       104,231  
Real estate – commercial       452,777       422,665  
Real estate – residential       50,166       39,524  
Consumer       29,265       27,136  
Unearned fees       (555 )     (560 )
        726,414       693,150  
Allowance for loan losses       (9,418 )     (8,713 )
Net Loans     $   716,996     $ 684,437  
 

Deposit Composition
The components of the Company’s deposits at June 30, 2016 and December 31, 2015 are as follows:  

     
    (In Thousands)
    June 30,
2016		     December 31,
 2015		  
Non-interest bearing   $   149,933       $ 144,627    
NOW accounts     146,776         148,373    
Savings deposits     222,950         222,091    
Money market deposits     73,298         75,323    
Listed service CD’s     41,195         33,261    
Time deposits / IRA     54,759         46,902    
Wholesale deposits     37,353         37,859    
Total Deposits   $   726,264       $ 708,436    
 

2016 Second Quarter and First Half Financial Review

Net Income
Net income available to common shareholders for the three months ended June 30, 2016 was $1.73 million, or $0.21 per diluted common share, compared to $1.45 million, or $0.18 per diluted common share, for the same period last year, an increase of 19.4%.  The increase was due to both higher net interest income and non-interest income while expenses were unchanged.  On a linked quarter basis, second quarter 2016 net income available to common shareholders increased 2.0% from the 2016 first quarter.

Net income available to common shareholders for the six months ended June 30, 2016 increased 19.0% to $3.42 million, or $0.42 per diluted share, compared to $2.87 million, or $0.35 per diluted share, in the same prior year period.

Net Interest Income
Net interest income for the quarter ended June 30, 2016 was $7.27 million, an increase of 4.8% compared to $6.94 million in the corresponding prior year period.  This increase was largely due to an increase of $56.8 million, or 7.4%, in average interest earning assets, primarily attributable to growth in the Company’s loan portfolio.  On a linked quarter basis, net interest income increased $141,000, or 2.0%, from $7.13 million.

For the first half of 2016, net interest income increased 5.0% to $14.4 million from $13.7 million in the same prior year period.

Net Interest Margin
The Company reported a net interest margin of 3.57% for the second quarter of 2016, which was unchanged when compared to the 3.57% reported in the first quarter of 2016, and slightly less when compared to the 3.65% reported for the second quarter of 2015. 

The net interest margin for the first half of 2016 was 3.57%, compared to 3.71% in the prior year period.

The 8 and 14 basis point declines in net interest margin from the second quarter and first half of 2015, respectively, were mainly due to the interest expense associated with the Company’s $10 million subordinated debenture placement, which funded in December 2015.  The subordinated debentures have a maturity date of December 31, 2025 and currently bear an annual interest rate of 6.25%.

Non-Interest Income
The Company reported the highest quarterly non-interest income in its history during the second quarter of 2016.  Non-interest income for the quarter ended June 30, 2016 totaled $1.2 million, an increase of $225,000, or 23.9%, compared to the same period in 2015.  This was largely a result of a 96.5% increase in residential mortgage banking revenue of $138,000, coupled with higher gains on the sale of SBA loans of $264,000.  These increases were partially offset by lower other income resulting from a $208,000 gain on the sale of a branch property during the second quarter of 2015.  On a linked quarter basis, non-interest income increased $273,000, or 30.6%, from $893,000 in the first quarter of 2016.

For the six months ended June 30, 2016, non-interest income increased $342,000, or 19.9%, to $2.1 million from the same period in 2015.

Non-Interest Expense
Non-interest expense for the quarter ended June 30, 2016 totaled $5.4 million, remaining largely flat from the same period in 2015, as higher salaries and benefits were offset by lower loan workout expenses.  On a linked quarter basis, non-interest expense decreased $18,000, largely as a result of the lower loan workout expenses noted above, coupled with lower professional fees.

For the six months ended June 30, 2016, non-interest expense increased $238,000, or 2.3%, to $10.8 million compared to the same prior year period.

Provision for Loan Losses
During the quarter, a provision for loan losses of $390,000 was required, compared to $190,000 in the same prior year period.  The majority of the second quarter 2016 provision was to record a specific reserve against one commercial loan whereby the underlying collateral value has been impaired by an environmental issue.  For the first half of 2016, a provision of $390,000 was expensed, compared to $280,000 for the same prior-year period.  The Company had $315,000 of net loan recoveries during the first half of 2016, which also attributed to the $705,000 increase in the allowance for loan losses during 2016.  This compared to $54,000 in net loan recoveries in the same prior-year period.

The Bank continues to be proactive in identifying troubled credits early, to record charge-offs promptly based on current collateral values, and to maintain an adequate allowance for loan losses.  The Company closely monitors local and regional real estate markets in its core Monmouth, Middlesex, Union and Ocean County, New Jersey market areas and other risk factors related in its loan portfolio.

As of June 30, 2016, the Company's allowance for loan losses was $9.4 million, as compared to $8.7 million as of December 31, 2015.  The loss allowance as a percentage of total loans was 1.30% at June 30, 2016 compared to 1.26% at December 31, 2015.  This increase was due to the aforementioned specific reserve.

Financial Condition / Balance Sheet
At June 30, 2016, the Company maintained capital ratios that were in excess of regulatory standards for well-capitalized institutions.  The Company's Tier 1 capital to average assets ratio was 8.99%, common equity Tier 1 to risk-weighted assets ratio was 10.10%, Tier 1 capital to risk-weighted assets ratio was 10.10%, and total capital to risk-weighted assets ratio was 12.60%.

Total assets as of June 30, 2016 were $884.7 million, compared to $863.7 million as of December 31, 2015.

Total loans as of June 30, 2016 were $726.4 million, compared to $693.2 million reported at December 31, 2015.

Total deposits as of June 30, 2016 were $726.3 million, compared to $708.4 million as of December 31, 2015.  Core checking deposits at June 30, 2016 increased to $296.7 million, up $3.7 million, or 1.3%, from year-end 2015.  This modest growth is due primarily to seasonality in municipal relationships.  The Company continues to focus on building core funded non-interest bearing deposit relationships.

Asset Quality
The Company's non-performing assets at June 30, 2016 decreased to $2.0 million as compared to $3.6 million at December 31, 2015 and $6.3 million at June 30, 2015.  Non-performing assets to total assets at June 30, 2016 declined to 0.22%, compared to 0.42% at December 31, 2015, and 0.75% at June 30, 2015.

Non-accrual loans decreased to $1.7 million at June 30, 2016, compared to $3.2 million at December 31, 2015 and $4.9 million at June 30, 2015.  OREO was $259,000 at June 30, 2016, compared to $411,000 at December 31, 2015 and $1.4 million at June 30, 2015. 

Troubled debt restructured loan balances amounted to $8.7 million at June 30, 2016, with all but $158,000 performing.  This compared to $10.8 million at December 31, 2015 and $19.5 million at June 30, 2015.

About the Company
Two River Bancorp is the holding company for Two River Community Bank, which is headquartered in Tinton Falls, New Jersey. Two River Community Bank operates 15 branches and two Loan Production Offices throughout Monmouth, Middlesex, Union and Ocean Counties, New Jersey.

   
TWO RIVER BANCORP  
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)  
For the Three Months and Six Months Ended June 30, 2016 and 2015  
(in thousands, except per share data)  
   
    Three Months Ended
June 30,		   Six Months Ended
June 30,
 
      2016       2015     2016       2015  
INTEREST INCOME:                      
Loans, including fees   $   8,085     $ 7,540   $   15,998     $ 14,886  
Securities:                      
Taxable     192       212     384       429  
Tax-exempt     230       126     430       224  
Interest bearing deposits     32       25     65       40  
Total Interest Income     8,539       7,903     16,877       15,579  
INTEREST EXPENSE:                      
Deposits     945       791     1,828       1,526  
Securities sold under agreements to repurchase     15       16     29       32  
Long-term debt     147       160     295       313  
Subordinated debt     163       -     328       -  
Total Interest Expense     1,270       967     2,480       1,871  
Net Interest Income     7,269       6,936     14,397       13,708  
PROVISION FOR LOAN LOSSES     390       190     390       280  
Net Interest Income after Provision for Loan Losses     6,879       6,746     14,007       13,428  
NON-INTEREST INCOME:                      
Service fees on deposit accounts     137       143     273       291  
Mortgage banking     281       143     515       286  
Other loan fees     62       39     123       80  
Earnings from investment in bank-owned life insurance     109       112     218       223  
Gain on sale of SBA loans     365       101     459       277  
Net realized gain on sale of securities     -       13     72       28  
Gain on sale of premises and equipment     -       208     -       208  
Other income     212       182     399       324  
Total Non-Interest Income     1,166       941     2,059       1,717  
NON-INTEREST EXPENSES:                      
Salaries and employee benefits     3,195       3,102     6,300       6,120  
Occupancy and equipment     1,033       999     2,028       1,976  
Professional     280       232     615       446  
Insurance     57       81     104       175  
FDIC insurance and assessments     105       114     210       205  
Advertising     120       145     230       245  
Data processing     135       124     270       242  
Outside services fees     115       122     238       245  
Amortization of identifiable intangibles     -       9     10       28  
OREO expenses, impairment and sales, net     (45 )     (22 )   (26 )     (24 )
Loan workout expenses     18       127     98       213  
Other operating     366       344     699       667  
Total Non-Interest Expenses     5,379       5,377     10,776       10,538  
Income before Income Taxes     2,666       2,310     5,290       4,607  
INCOME TAX EXPENSE     939       849     1,870       1,703  
Net Income     1,727       1,461     3,420       2,904  
Preferred stock dividend     -       (15 )   -       (30 )
Net Income Available to Common Shareholders   $   1,727     $ 1,446   $   3,420     $ 2,874  
EARNINGS PER COMMON SHARE:                      
Basic   $   0.22     $ 0.18   $   0.43     $ 0.36  
Diluted   $   0.21     $ 0.18   $   0.42     $ 0.35  
Weighted average common shares outstanding:                      
Basic     7,927       7,930     7,923       7,937  
Diluted     8,110       8,142     8,101       8,143  

 

   
TWO RIVER BANCORP  
CONSOLIDATED BALANCE SHEETS (Unaudited)  
(in thousands, except share data)  
   
    June 30,   December 31,  
    2016   2015  
ASSETS              
Cash and due from banks   $ 25,112   $ 21,566  
Interest bearing deposits in bank     6,216     25,161  
Cash and cash equivalents     31,328     46,727  
               
Securities available for sale     33,089     33,530  
Securities held to maturity     47,245     43,167  
Restricted investments, at cost     3,912     3,596  
Loans held for sale     2,849     3,050  
Loans     726,414     693,150  
Allowance for loan losses     (9,418 )   (8,713 )
Net loans     716,996     684,437  
               
OREO and repossessed assets     259     411  
Bank-owned life insurance     17,513     17,294  
Premises and equipment, net     4,881     5,083  
Accrued interest receivable     2,036     1,912  
Goodwill     18,109     18,109  
Other intangible assets     -     9  
Other assets     6,483     6,371  
               
TOTAL ASSETS   $ 884,700   $ 863,696  
               
LIABILITIES              
Deposits:              
Non-interest bearing   $ 149,933   $ 144,627  
Interest bearing     576,331     563,809  
Total Deposits     726,264     708,436  
               
Securities sold under agreements to repurchase     21,683     19,545  
Accrued interest payable     84     118  
Long-term debt     23,800     26,500  
Subordinated debt     9,839     9,824  
Other liabilities     6,737     6,271  
               
Total Liabilities     788,407     770,694  
               
SHAREHOLDERS' EQUITY              
Preferred stock, no par value; 6,500,000 shares authorized, no shares issued and outstanding     -     -  
Common stock, no par value; 25,000,000 shares authorized;              
Issued – 8,252,079 and 8,213,196 at June 30, 2016 and December 31, 2015, respectively              
Outstanding – 7,967,347 and 7,929,196 at June 30, 2016 and December 31, 2015, respectively     73,070     72,890  
Retained earnings     25,623     22,759  
Treasury stock, at cost; 284,732 shares and 284,000 shares at June 30, 2016 and
   December 31, 2015, respectively		     (2,254 )   (2,248 )
Accumulated other comprehensive loss     (146 )   (399 )
Total Shareholders' Equity     96,293     93,002  
               
TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY   $ 884,700   $ 863,696  
   
TWO RIVER BANCORP  
Selected Consolidated Financial Data (Unaudited)  
   
Selected Consolidated Earnings Data  
(In thousands, except per share data)  
   
     Three Months Ended   Six Months Ended  
    June 30,   March 31,   June 30,   June 30,   June 30,  
Selected Consolidated Earnings Data:     2016       2016       2015     2016       2015  
Total Interest Income   $   8,539     $ 8,338     $ 7,903   $   16,877     $ 15,579  
Total Interest Expense     1,270       1,210       967     2,480       1,871  
Net Interest Income     7,269       7,128       6,936     14,397       13,708  
Provision for Loan Losses     390       -       190     390       280  
Net Interest Income after Provision for Loan Losses     6,879       7,128       6,746     14,007       13,428  
Other Non-Interest Income     1,166       893       941     2,059       1,717  
Other Non-Interest Expenses     5,379       5,397       5,377     10,776       10,538  
Income before Income Taxes     2,666       2,624       2,310     5,290       4,607  
Income Tax Expense     939       931       849     1,870       1,703  
Net Income     1,727       1,693       1,461     3,420       2,904  
Preferred Stock Dividend     -       -       (15 )   -       (30 )
Net Income Available to Common Shareholders   $   1,727     $ 1,693     $ 1,446   $   3,420     $ 2,874  
                       
Per Common Share Data:                      
Basic Earnings   $   0.22     $ 0.21     $ 0.18   $   0.43     $ 0.36  
Diluted Earnings   $   0.21     $ 0.21     $ 0.18   $   0.42     $ 0.35  
Book Value   $   12.09     $ 11.91     $ 11.37   $   12.09     $ 11.37  
Tangible Book Value (1)   $   9.81     $ 9.63     $ 9.09   $   9.81     $ 9.09  
Average Common Shares Outstanding (in thousands):                      
Basic     7,927       7,918       7,930     7,923       7,937  
Diluted     8,110       8,089       8,142     8,101       8,143  
                                       

(1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.

     
Selected Period End Balances    
(In thousands)    
    June 30,   Dec. 31,   June 30,  
      2016     2015     2015  
Total Assets   $   884,700   $ 863,696   $ 844,364  
Investment Securities and Restricted Stock       84,246     80,293     77,957  
Total Loans       726,414     693,150     674,050  
Allowance for Loan Losses       (9,418 )   (8,713 )   (8,295 )
Goodwill and Other Intangible Assets       18,109     18,118     18,138  
Total Deposits       726,264     708,436     686,395  
Repurchase Agreements       21,683     19,545     27,916  
Long-Term Debt       23,800     26,500     28,000  
Subordinated Debt     9,839     9,824     -  
Shareholders' Equity       96,293     93,002     96,255  
                     

 

Asset Quality Data (by Quarter)
(Dollars in thousands)
 
    June 30,   March 31,   Dec. 31,   Sept. 30,   June 30,    
     2016    2016    2015    2015    2015    
Nonaccrual loans   $   1,697   $ 1,723   $ 3,178   $ 3,680   $ 4,930    
OREO     259     259     411     495     1,411    
Total Non-Performing Assets     1,956     1,982     3,589     4,175     6,341    
                         
Troubled Debt Restructured Loans:                        
Performing     8,492     8,920     9,289     11,290     17,239    
Non-Performing     158     161     1,552     1,578     2,287    
                         
Non-Performing Loans to Total Loans     0.23 %   0.24 %   0.46 %   0.54 %   0.73 %  
Non-Performing Assets to Total Assets     0.22 %   0.22 %   0.42 %   0.50 %   0.75 %  
Allowance as a % of Loans     1.30 %   1.27 %   1.26 %   1.25 %   1.23 %  
   
Capital Ratios  
   
   June 30, 2016
   December 31, 2015  
  CET 1
Capital
to Risk Weighted
Assets
Ratio		   Tier 1
Capital
to
Average
Assets
Ratio		   Tier 1
Capital
to Risk
Weighted
Assets Ratio		   Total
Capital
to Risk Weighted
Assets
Ratio		   CET 1
Capital
to Risk Weighted
Assets
Ratio		   Tier 1
Capital
to
Average Assets
Ratio		   Tier 1
Capital
to Risk Weighted
Assets
Ratio		   Total
Capital to
Risk Weighted
Assets
Ratio		  
                 
                 
Two River Bancorp 10.10 % 8.99 % 10.10 % 12.60 % 10.13 % 10.13 % 8.97 % 12.65 %
Two River Community Bank 11.30 % 10.07 % 11.30 % 12.51 % 11.39 % 11.39 % 10.09 % 12.56 %
"Well capitalized" institution (under prompt correction action regulations)* 6.50 % 5.00 % 8.00 % 10.00 % 6.50 % 5.00 % 8.00 % 10.00 %
 
*Applies to Bank only.  For the Company to be “well-capitalized,” the Tier 1 Capital to Risk Weighted Assets has to be at least 6.00%.
 
 
Reconciliation of Non-GAAP Financial Measures
 
The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting policies in the United States (GAAP). These non-GAAP financial measures are "book value per common share," "tangible book value per common share," "return on average tangible assets," and "return on average tangible equity." This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Our management uses these non-GAAP measures in its analysis of our performance because it believes these measures are material and will be used as a measure of our performance by investors.
           
(In thousands, except per share data)
  
           
    As of and for the Three Months Ended   As of and for the
Six Months Ended		  
    June 30,   March 31,   Dec. 31,   Sept. 30,   June 30,   June 30,   June 30,  
    2016   2016   2015   2015   2015   2016   2015  
Total shareholders' equity   $ 96,293   $ 94,613   $ 93,002   $ 97,640   $ 96,255   $ 96,293   $ 96,255  
Less: preferred stock     -     -     -     (6,000 )   (6,000 )   -     (6,000 )
                                             
Common shareholders' equity   $ 96,293   $ 94,613   $ 93,002   $ 91,640   $ 90,255   $ 96,293   $ 90,255  
Less: goodwill and other tangibles     (18,109 )   (18,109 )   (18,118 )   (18,128 )   (18,138 )   (18,109 )   (18,138 )
                                             
Tangible common shareholders’ equity   $ 78,184   $ 76,504   $ 74,884   $ 73,512   $ 72,117   $ 78,184   $ 72,117  
                                             
Common shares outstanding     7,967     7,943     7,929     7,918     7,935     7,967     7,935  
Book value per common share   $ 12.09   $ 11.91   $ 11.73   $ 11.57   $ 11.37   $ 12.09   $ 11.37  
                                             
Book value per common share   $ 12.09   $ 11.91   $ 11.73   $ 11.57   $ 11.37   $ 12.09   $ 11.37  
Effect of intangible assets       (2.28 )   (2.28 )   (2.29 )   (2.29 )   (2.28 )   (2.28 )   (2.28 )
Tangible book value per common share   $ 9.81   $ 9.63   $ 9.44   $ 9.28   $ 9.09   $ 9.81   $ 9.09  
                               
Return on average assets   0.78 % 0.78 % 0.81 % 0.79 % 0.71 % 0.78 % 0.72 %
Effect of intangible assets   0.02 % 0.02 % 0.02 % 0.01 % 0.02 % 0.02 % 0.02 %
Return on average tangible assets   0.80 % 0.80 % 0.83 % 0.80 % 0.73 % 0.80 % 0.74 %
                               
Return on average equity   7.28 % 7.25 % 7.14 % 6.95 % 6.15 % 7.26 % 6.17 %
Effect of average intangible assets   1.70 % 1.73 % 1.64 % 1.60 % 1.44 % 1.72 % 1.46 %
Return on average tangible equity   8.98 % 8.98 % 8.78 % 8.55 % 7.59 % 8.98 % 7.63 %