TriState Capital Reports Second Quarter 2019 EPS of $0.47, Record Annual Loan and Deposit Growth, and Strong Investment Performance by Its Asset Manager
TriState Capital Holdings, Inc. (Nasdaq: TSC) reported record annual growth in deposits and loans, record net interest income and further improvements in the company’s superior credit quality metrics in the second quarter of 2019, as well as strong investment performance at its asset management business.
The parent company of TriState Capital Bank and Chartwell Investment Partners reported diluted earnings per share (EPS) of $0.47 in the second quarter of 2019, compared to $0.48 in the second quarter of 2018 and $0.48 in the first quarter of 2019. Net income available to common shareholders was $13.5 million in the second quarter of 2019, compared to $13.8 million in the prior year period and $13.9 million in the first quarter of 2019.
Second quarter earnings in 2019 were reduced by $0.02 per share, or $471,000, due to an increase in quarterly perpetual preferred stock dividends following the company’s successful May 2019 capital raise, while second quarter 2018 EPS included an $0.08 benefit, primarily from an opportunistic tax credit investment.
“On the heels of an exceptional first quarter, we are very pleased with our second quarter results, the double-digit earnings, pre-tax income and revenue growth achieved in the first half of the year, and TriState Capital’s strong momentum headed into the second half of 2019,” Chairman and Chief Executive Officer James F. Getz said. “With more than $1 billion of organic balance sheet expansion over the last 12 months, TriState Capital grew deposits by 30%, loans by 24% and total assets by 31%. Our bank continues to demonstrate its ability to provide a premier banking experience with compelling credit and liquidity management offerings for high-net-worth individuals, investment advisors, financial services firms, middle-market commercial enterprises and other sophisticated clients. At Chartwell, strong investment performance in the first half of 2019 is expected to attract a growing number of retail and institutional investors to our asset management products.”
SECOND QUARTER 2019 HIGHLIGHTS
- Net interest income (NII) grew to a record $31.3 million, increasing 8.7% from the prior year period and 3.1% from the linked quarter.
- Average deposits grew to $5.34 billion, up 30.4% from the same period last year and 6.1% from the linked quarter.
- Average loans grew to $5.46 billion, up 24.8% from the same period last year and 5.5% from the linked quarter.
- Private banking loans surpassed the $3 billion milestone to grow to a record $3.19 billion at period end, increasing 28.2% from one year prior and 6.9% during the quarter.
- Commercial loans grew to a record $2.48 billion at period end, increasing 19.9% from one year prior and 5.2% during the quarter.
- Non-performing loans (NPLs) and adverse rated credits declined to 0.04% and 0.47% of total loans, respectively, at period end, while allowance for loan and lease losses (ALLL) increased to 640.29% of NPLs.
- Non-interest expenses grew 9.0%, from the prior year period, and the bank efficiency ratio was 55.16%.
- 85% of Chartwell’s investment strategies surpassed their benchmarks for the trailing three years and 75% surpassed their benchmarks for the trailing five years.
TriState Capital’s record second quarter 2019 NII of $31.3 million increased 8.7% from $28.8 million in the year-ago quarter and 3.1% from $30.4 million in the linked first quarter of 2019, even as the company grew deposits at a faster rate than loans, lowering its loan to deposit ratio, and reduced balance sheet risk via the continued growth in private banking loans backed by marketable securities.