Susquehanna Bancshares (SUSQ) Reports In-Line Q1 EPS

Susquehanna Bancshares (NASDAQ: SUSQ) reported Q1 EPS of $0.18, ex-items, in-line with the analyst estimate of $0.18.

Highlights:

• Loans and leases decreased $29.9 million or 0.2% from December 31, 2014 to $13.5 billion at March 31, 2015.
• Total deposits increased $43.5 million or 0.3% from December 31, 2014 to $13.8 billion at March 31, 2015.
• Net interest margin decreased 6 basis points to 3.40% for the first quarter of 2015 compared to 3.46% for the fourth quarter of 2014. Net interest margin (excluding purchase accounting) (1) was flat at 3.31% for the first quarter of 2015. The decrease in the net interest margin was driven by a reduction in purchase accounting amortization.
• Net interest income decreased to $131.6 million for the first quarter of 2015 compared to $135.4 million for the fourth quarter of 2014. The increase in average earning assets was more than offset by a decline in net interest margin and two fewer days in the first quarter of 2015 compared to the fourth quarter of 2014.
• Non-interest income decreased to $42.3 million for the first quarter of 2015 compared to $46.6 million for the fourth quarter of 2014. The fourth quarter benefited from seasonally-strong SBA loan sales, gains on the sale of foreclosed real estate and interchange volume incentives. In other non-interest income categories, solid performance in mortgage and insurance offset weaker performance in auto leasing and deposit services.
• Non-interest expense decreased to $126.6 million for the first quarter of 2015 compared to $130.5 million for the fourth quarter of 2014. The decrease was driven by a reduction in incentive compensation expense, which is typically the highest in the fourth quarter. The first quarter of 2015 included pre-tax merger-related expenses of $4.4 million.
• The efficiency ratio (1), which excludes merger-related expenses, decreased to 68.81% for the first quarter of 2015 compared to 69.73% for the fourth quarter of 2014.
• Non-performing assets as a percentage of loans, leases and foreclosed real estate owned decreased to 0.73% at March 31, 2015 compared to 0.79% at December 31, 2014.
• The provision for loan and lease losses for the first quarter of 2015 decreased to $5.8 million compared to $7.2 million for the fourth quarter of 2014. Net charge-offs for the first quarter of 2015 increased slightly to $7.6 million, or 0.23% of average loans and leases, compared to $7.5 million, or 0.22% of average loans and leases, for the fourth quarter of 2014. As a result, the allowance for loan and lease losses was $134.7 million at March 31, 2015, representing 1.00% of total loans and leases and 151% of nonaccrual loans and leases compared to $136.5 million at December 31, 2014, representing 1.01% of total loans and leases and 140% of nonaccrual loans and leases.

For earnings history and earnings-related data on Susquehanna Bancshares (SUSQ) click here.

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