Tristate Capital (TSC) Tops Q2 EPS by 9c

Tristate Capital (NASDAQ: TSC) reported Q2 EPS of $0.30, $0.09 better than the analyst estimate of $0.21.

SECOND QUARTER 2020 HIGHLIGHTS

• Chartwell client assets under management grew 11.2% during the quarter to $9.25 billion, drawing positive net inflows of $132.0 million year to date, including $75.0 million during the second quarter.
• Private banking loans primarily collateralized by marketable securities represented 56.6% of total loans at period end, growing 27.4% from June 30, 2019 and 3.8% during the quarter, with a record number of new applications.
• Commercial loans increased by 25.5% from June 30, 2019 and 2.1% during the quarter, with growth fully attributed to TriState Capital’s regional middle-market franchise and well-established commercial credit offering.
• TriState Capital’s flexible business model and focus on operating leverage resulted in a record low bank efficiency ratio, with non-interest expense increasing a modest 1.9% from the prior year quarter and declining 3.6% from the linked quarter.
• Allowance for loan and lease losses (ALLL) increased by 34.5% during the quarter to $23.3 million, representing 0.75% of commercial loans, or 0.32% of total loans, including marketable securities collateralized loans.
• Even with a $6.7 million increase in provision expense from the year-ago quarter to $6.0 million, reflecting ALLL build, credit costs across the portfolio remain relatively low given the company’s private banking loan portfolio, limited commercial exposure to the industries most directly impacted by the COVID-19 pandemic and the quality of commercial borrower sponsorship, as well as its proven approach to managing high quality commercial credits.

“TriState Capital’s second quarter results illustrate the resilience of our business model and our ability to generate profitable annualized double-digit loan growth in every environment,” Chairman and Chief Executive Officer James F. Getz said. “Our balance sheet reflects strong liquidity and credit quality, demonstrating the strength of our relationships, our team’s dedication to providing an exceptional client experience, and prudent risk management. Our Chartwell business, which provides a steady stream of non-interest income, grew assets under management to $9.25 billion with a strong pipeline of new business that we expect to fund in the coming quarters.”

For earnings history and earnings-related data on Tristate Capital (TSC) click here.

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