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Talmer Bancorp’s Second-Quarter Income Is $20.61M
TROY, Mich. -- Talmer Bancorp Inc., holding company of Talmer Bank and Trust, Wednesday reported second-quarter net income of $20.61 million, or 27 cents per diluted common share.
This compares to first-quarter net income of $36.41 million, or 50 cents a share, and second-quarter 2013 income of $15.01 million, or 21 cents a share.
Talmer noted its first-quarter net income was revised to reflect the impact of adjustments to the acquisition-date fair value of certain assets and liabilities during that period. Those adjustments increased the net income for that period and equity value at March 31 by $3.7 million above what was originally reported.
In a prepared statement, Provost said, “We are pleased with our core operating trends in the second quarter, including strong organic loan growth. … Overall, our net total loans grew by an annualized rate of 12.9% compared to the first quarter. Importantly, our loan pipeline has strengthened over the past couple of months, which supports our expectation of continued strong organic loan growth during the second half of this year.”
Talmer also announced it had signed a definitive agreement to acquire First of Huron Corp., holding company of Signature Bank based in Bad Axe, and pay $13.4 million in cash. Signature Bank had assets of $228 million, including $172.3 million in loans, at June 30. The purchase should close the last quarter of this year or the first quarter of next, Talmer and First of Huron said.
The directors of Talmer declared a cash dividend of a penny a share payable Aug. 29 to shareholders of record Aug. 18.
Key performance ratios for the quarters ended June 30, March 31, and June 30, 2013:
- Return on average assets (annualized) 1.51%, 2.90%, 1.25%.
- Return on average equity (annualized), 11.64%, 21.15%, 10.12%.
- Net interest margin, 4.36%, 3.95%, 4.03%.
The company did not provide data on the bank’s efficiency ratio although the president and CEO, David Provost, said the company experienced “incremental improvement in our operating efficiency [and looked forward to] creating more opportunities for improving our operating efficiency.”
Other highlights Talmer provided:
- Net total loans rose by $116 million to $3.698 billion at June 30 from $3.582 billion March 31. At June 30, 2013, the figure was $2.783 billion.
- Total deposits fell $89.8 million to $4.297 billion during the quarter. They were $3.708 billion a year earlier.
- Net interest income was $52.53 million, up from $48.12 million at March 31 and $44.06 million at June 30, 2013.
Noninterest income (includes fees and mortgage services) was $13.90 million, down from $56.18 million the first quarter and $36.06 million at June 30, 2013. Included in second-quarter data were a loss of $1.025 billion in mortgage banking and other loan fees and $3.434 billion in Federal Deposit Insurance Corp. loss sharing.
Noninterest expense (includes wags and benefits, rents and equipment expense, data processing fees, marketing and FDIC premiums) was $54.17 million, a decrease from $65.61 million the first quarter and $59.90 million the second quarter of 2013.
Under its impaired loans section, Talmer reported total performing troubled loan debt restructurings of $5.33 million and total uncovered impaired assets of $71.14 million. This compares to $5.32 million and $76.60 million respectively the preceding quarter and $1.54 million and $34.47 million the second quarter of 2013.
Total covered impaired assets were $46.00 million at June 30, $46.47 million at March 31 and $65.00 million at June 30, 2013.
Total assets increased to $5.608 billion during the quarter from $5.421 billion three months earlier and $4.850 billion a year earlier.
Source: Talmer Bancorp Inc.
Published by The Business Journal, Youngstown, Ohio.
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