Form 8-K TriState Capital Holding For: Oct 20

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October 21, 2015 4:31 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________

FORM 8-K
_________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 20, 2015

_________
TRISTATE CAPITAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
_________
Pennsylvania
 
001-35913
 
20-4929029
(State or other jurisdiction of incorporation or organization)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
One Oxford Centre
301 Grant Street, Suite 2700
Pittsburgh, Pennsylvania 15219
(Address of principal executive offices)
(Zip Code)
(412) 304-0304
(Registrant's telephone number, including area code)
_________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



1


Item 2.02.    Results of Operations and Financial Condition.
On October 21, 2015, TriState Capital Holdings, Inc. issued a press release which disclosed results of operations for the three and nine months ended September 30, 2015. A copy of the press release is included as Exhibit 99 to this report.
The information in this report, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.


Item 5.02.    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(d)
On October 20, 2015, the Board of Directors (the “Board”) of TriState Capital Holdings, Inc. (the “Company”) elected David L. Bonvenuto, effective immediately, to fill the vacancy in the Board created by the previous resignation of James H. Graves as a Class I Director. His term as a Class I Director will end in 2017.

Mr. Bonvenuto is the President and CEO of Oberg Industries, Inc., a privately held contract manufacturer specializing in precision metalworking with a focus on the medical device, energy, aerospace/defense and metal packaging end markets. Prior to becoming CEO of Oberg Industries, Inc., Mr. Bonvenuto served the company as Chief Financial Officer and Executive Vice President. A graduate of West Virginia University, majoring in Business Administration with an emphasis in Accounting, he is a member of the Board of Directors and Chairman of the Strategy and Finance Committee of Allegheny Valley Hospital, a member of the Allegheny Health Network, and a member of the Board of Directors of Oberg Industries, Inc. and Catalyst Connection.

Mr. Bonvenuto will be compensated in accordance with the Company’s standard compensation policies and practices for the Board, the components of which were disclosed in the Company’s Proxy Statement for its 2015 Annual Meeting of Stockholders dated April 15, 2015. The Company is not aware of any transaction in which Mr. Bonvenuto has an interest requiring disclosure under Item 404(a) of Regulation S-K. Mr. Bonvenuto has been appointed to serve on the Company’s Audit and Risk Committees.


Item 9.01.    Financial Statements and Exhibits.
Exhibit No.
Description
99
Press release dated October 21, 2015, filed herewith.

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


TRISTATE CAPITAL HOLDINGS, INC.
 
 
By
/s/ James F. Getz
 
James F. Getz
 
Chairman, President and Chief Executive Officer
 
 

Date: October 21, 2015


3


EXHIBIT INDEX


Exhibit No.
Description
99
Press release dated October 21, 2015, filed herewith.


4
EXHIBIT 99



FOR IMMEDIATE RELEASE


TRISTATE CAPITAL REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS

PITTSBURGH, October 21, 2015 - TriState Capital Holdings, Inc. (NASDAQ: TSC) reported higher net income and earnings per share, significant loan growth and strong improvement in credit metrics in the third quarter 2015.

Net income for the parent company of TriState Capital Bank and Chartwell Investment Partners was $6.1 million in the third quarter of 2015, increasing from $5.7 million in the second quarter and $5.7 million in the third quarter of 2014. Net income per diluted share was $0.22 in the third quarter of 2015, increasing from $0.20 in the second quarter and $0.20 in the third quarter of 2014.

“We are extremely pleased with the results we’ve posted, and more importantly, with the underlying trends that produced superior performance once again for TriState Capital,” said Chief Executive Officer James F. Getz. “Our strategy is being executed on all fronts. The exceptional growth of our lower-risk-profile private banking channel lending business, coupled with the strong contributions of our middle-market commercial banking and investment management businesses, enabled us to continue very positive momentum through the first nine months of 2015. The third quarter also illustrated TriState Capital's ability to acquire, retain and grow client relationships in a range of economic, interest rate and capital markets environments, thanks to our sales-driven culture and financial services distribution model.”

THIRD QUARTER 2015 HIGHLIGHTS
•
Pre-tax and net income increased to $9.1 million and $6.1 million, respectively
•
Total loans grew 4.2%, or 16.6% annualized, during the quarter and 15.9% from one year prior
•
Private banking channel loans grew 7.7%, or 30.5% annualized, during the quarter and 31.3% from one year prior
•
NPAs declined by 21.9% during the quarter and 26.2% from one year prior, representing 0.67% of assets at September 30
•
Total adverse-rated credits declined 2.2% during the quarter and 22.4% from one year prior, representing 2.1% of total loans at September 30
•
Chartwell segment net income increased 4.3% from the linked quarter and 15.5% from the year-ago quarter.

TriState Capital recorded a credit to provision expenses of $1.3 million and $231,000 for the three and nine months ended September 30, 2015, respectively. The third quarter credit provision was driven by a $1.1 million reserve reversal from payoffs on two substandard-rated credits and a $433,000 recovery on one loan previously charged-off. Provision expenses were $185,000 and $651,000 for the second quarter of 2015 and the third quarter of 2014, respectively.

TriState Capital’s loan growth continues to generate strong net interest income (NII) that continues to outpace margin compression. NII was $17.0 million in the third quarter of 2015, increasing 2.0% from $16.6 million in the second quarter and 4.4% from $16.2 million in the third quarter of 2014.

Investment management fees of $7.0 million reflected Chartwell’s net growth in new business and inflows in the third quarter of 2015, offset by general declines in U.S. equity markets for the three months ended September 30. Chartwell investment management fees were $7.5 million in the linked quarter and $7.4 million in the year-ago quarter.

Other non-interest income was $1.0 million in the third quarter of 2015, reflecting lower activity levels for swaps in the period, compared to $2.1 million in the linked quarter and $1.9 million in the year-ago quarter. Total non-interest income was $8.1 million, or 32.2% of total revenue, in the third quarter of 2015, compared to $9.6 million in the linked quarter and $9.3 million in the year-ago period.

Total revenue was $25.0 million in the third quarter of 2015, reflecting lower investment management fees and other non-interest income in the period, compared to $26.2 million in the linked quarter and $25.5 million in the year-ago quarter.


1
EXHIBIT 99

Third quarter 2015 non-interest expenses were $17.3 million, or 2.25% of average assets on an annualized basis, compared to $17.6 million, or 2.39%, in the linked quarter and $16.7 million, or 2.43%, in the prior year quarter. The efficiency ratio for the bank was 64.93% in the third quarter of 2015, compared to 60.78% in the linked quarter and 58.34% in the year-ago quarter as a result of lower total revenue in the current quarter.

BALANCE SHEET GROWTH
Loans totaled $2.66 billion at September 30, 2015, increasing 4.2%, or 16.6% annualized, from June 30. Total loans grew 15.9% over balances at September 30, 2014. Private banking channel loans totaled $1.20 billion, growing 7.7% from the end of the linked quarter and 31.3% from the end of the year-ago quarter. Commercial real estate (CRE) loans totaled $831.2 million, growing 2.8% from the end of the linked quarter and 21.1% from the end of the year-ago quarter. Commercial and industrial (C&I) loan balances were $630.1 million at September 30, 2015, decreasing 0.2% from the end of the linked quarter and 9.5% from one year prior.

Deposits grew by 2.0% during the third quarter to $2.60 billion at September 30, 2015, while deposit funding costs remained flat from the linked quarter. Compared to the year-ago quarter, deposits grew 15.9% at period end, while deposit funding costs increased 2 basis points. The bank continues to grow deposits and has extended time deposit maturities to 299 days at September 30, 2015 from 213 one year prior.

TriState Capital remains very well positioned to profit from a rising interest-rate environment as the bank continues to manage a highly asset-sensitive balance sheet. At September 30, 2015, 84% of TriState Capital’s loan portfolio and 58% of its securities portfolio were floating rate. In addition, 36% of deposits were fixed-rate time deposits.

ASSET QUALITY
TriState Capital’s strong asset quality metrics in the third quarter of 2015 reflected the bank’s strategic shift toward lower-risk-profile earning loans, particularly private banking channel margin lending, as well as the payoffs of two substandard-rated credits and a recovery on one loan previously charged-off.

The company’s allowance for loan losses reflects its growing portfolio of private banking channel margin loans secured by marketable securities, which require lower provision based on their lower risk profile, as well as a decrease in non-performing loans. The allowance for loan losses represented 0.73% of total loans at September 30, 2015, compared to 0.84% at June 30, 2015 and 0.97% at September 30, 2014.

TriState Capital experienced net charge-offs on loans totaling $716,000, or 0.11% of average total loans, in the current quarter and net recoveries of $17,000 in the linked quarter. Net charge-offs for the third quarter of 2014 were $1.1 million, or 0.19% of average total loans. Non-performing assets (NPAs) declined by $5.9 million, or 21.9%, to $20.9 million during the third quarter of 2015. NPAs represented 0.67% of total assets at September 30, 2015, improving from 0.89% at June 30, 2015 and 1.03% at September 30, 2014.

Adverse-rated credits declined 2.2% during the third quarter and 22.4% from September 30, 2014. Adverse-rated credits represented 2.1% of total loans at the end of the third quarter of 2015, 2.2% at June 30, 2015 and 3.1% at September 30, 2014.

INVESTMENT MANAGEMENT
In spite of U.S. equity market volatility in the third quarter, net inflows reflect Chartwell's continued strong performance relative to benchmarks across disciplines, as well as the productivity of the boutique investment manager's business development efforts. Third quarter assets under management (AUM) reflects $258 million in new business and new flows from existing accounts, offset by outflows of $197 million and market depreciation of $560 million. Chartwell’s AUM were $7.6 billion at the end of the third quarter of 2015, compared to $8.1 billion at the end of the second quarter of 2015 and $7.6 billion at September 30, 2014.

Chartwell net income grew to $1.1 million in the third quarter of 2015, increasing 4.3% from the linked quarter and 15.5% from the year-ago quarter. Chartwell profitability remained strong, comprising 18% of TriState Capital Holdings’ consolidated net income, as the lower investment management fees associated with recent equity market volatility were offset by lower incentive compensation expense in the third quarter of 2015.

2
EXHIBIT 99


The weighted average fee rate was 0.37% for each of the second and third quarters of 2015. Chartwell investment management fees were $7.0 million in the third quarter of 2015, compared to $7.5 million in the linked quarter and $7.4 million in the year-ago quarter.

CAPITAL STRENGTH AND FLEXIBILITY
TriState Capital’s earnings in the quarter funded superior loan growth in the period, while the company maintained capital ratios that exceed the highest required regulatory benchmark levels. As of September 30, 2015, TriState Capital Holdings reported ratios of 13.99% for total risk-based capital, 12.22% for tier 1 risk-based capital, 12.22% for common equity tier 1 risk-based capital and 9.30% for tier 1 leverage.

CONFERENCE CALL
As previously announced, TriState Capital will hold a conference call tomorrow to review its financial results and operating performance.

The live conference call on October 22 will be held at 8:30 a.m. ET. Telephone participants may avoid any delays by pre-registering for the call using the link http://dpregister.com/10073757 to receive a special dial-in number and PIN. Telephone participants who are unable to pre-register should dial in at least 10 minutes prior to the call and request the “TriState Capital Holdings call.” The call may be accessed by dialing 888-339-0757 from the United States, 855-669-9657 from Canada or 412-902-4194 from other international locations.

A replay of the call will be available approximately one hour after the end of the conference call through October 31. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 412-317-0088 from other locations and entering the conference number 10073757.

ABOUT TRISTATE CAPITAL
TriState Capital Holdings, Inc. (NASDAQ: TSC) is a bank holding company headquartered in Pittsburgh, Pa., providing commercial banking, private banking and investment management services to middle-market companies, institutional clients and high-net-worth individuals. Its TriState Capital Bank subsidiary has $3.1 billion in assets, as of September 30, 2015, and serves middle-market commercial customers through regional representative offices in Pittsburgh, Philadelphia, Cleveland, Edison, N.J., and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. Its Chartwell Investment Partners subsidiary has $7.6 billion in assets under management, as of September 30, 2015, and serves institutional clients and TriState Capital’s financial intermediary network. For more information, please visit http://investors.tristatecapitalbank.com.

FORWARD LOOKING STATEMENTS
This press release includes “forward-looking” statements related to TriState Capital that can generally be identified as describing TriState Capital’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect TriState Capital’s future results, please see the company’s most-recent annual and quarterly reports filed on Form 10-K and Form 10-Q.

NON-GAAP FINANCIAL DISCLOSURES
This news release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Although TriState Capital believes non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. Where non-GAAP disclosures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found within this news release and accompanying tables.

###


3
EXHIBIT 99

MEDIA CONTACTS
Jack Horner
267-932-8760, ext. 302
412-600-2295 (mobile)

INVESTOR RELATIONS CONTACT
TriState Capital Holdings, Inc.
Brian Fetterolf
412-304-0451


4
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
 
As of and For the 
 Three Months Ended
 
As of and For the 
 Nine Months Ended
(Dollars in thousands)
September 30,
June 30,
September 30,
 
September 30,
September 30,
 
2015
2015
2014
 
2015
2014
Period-end balance sheet data:
 
 
 
 
 
 
Cash and cash equivalents
$
100,424

$
100,235

$
99,133

 
$
100,424

$
99,133

Total investment securities
220,012

219,662

225,509

 
220,012

225,509

Loans held-for-sale
—

4,084

—

 
—

—

Loans held-for-investment
2,661,191

2,554,343

2,296,507

 
2,661,191

2,296,507

Allowance for loan losses
(19,350
)
(21,407
)
(22,376
)
 
(19,350
)
(22,376
)
Loans held-for-investment, net
2,641,841

2,532,936

2,274,131

 
2,641,841

2,274,131

Goodwill and other intangibles, net
51,205

51,595

52,719

 
51,205

52,719

Other assets
116,765

108,649

102,801

 
116,765

102,801

Total assets
$
3,130,247

$
3,017,161

$
2,754,293

 
$
3,130,247

$
2,754,293

 
 
 
 
 
 
 
Total deposits
$
2,600,508

$
2,550,695

$
2,244,324

 
$
2,600,508

$
2,244,324

Borrowings
175,000

125,000

165,000

 
175,000

165,000

Other liabilities
34,199

27,068

37,610

 
34,199

37,610

Total liabilities
2,809,707

2,702,763

2,446,934

 
2,809,707

2,446,934

 
 
 
 
 
 
 
Total shareholders' equity
320,540

314,398

307,359

 
320,540

307,359

 
 
 
 
 
 
 
Total liabilities and shareholders' equity
$
3,130,247

$
3,017,161

$
2,754,293

 
$
3,130,247

$
2,754,293

 
 
 
 
 
 
 
Income statement data:
 
 
 
 
 
 
Interest income
$
20,940

$
20,426

$
19,681

 
$
61,361

$
56,980

Interest expense
3,984

3,808

3,435

 
11,331

8,834

Net interest income
16,956

16,618

16,246

 
50,030

48,146

Provision (credit) for loan losses
(1,341
)
185

651

 
(231
)
10,368

Net interest income after provision (credit) for loan losses
18,297

16,433

15,595

 
50,261

37,778

Non-interest income:
 
 
 
 
 
 
Investment management fees
7,020

7,514

7,418

 
22,189

17,381

Net gain on the sale of investment securities available-for-sale
—

—

—

 
17

1,428

Other non-interest income
1,044

2,117

1,872

 
4,547

4,082

Total non-interest income
8,064

9,631

9,290

 
26,753

22,891

Non-interest expense:
 
 
 
 
 
 
Intangible amortization expense
390

390

389

 
1,169

909

Other non-interest expense
16,911

17,192

16,284

 
50,816

44,040

Total non-interest expense
17,301

17,582

16,673

 
51,985

44,949

Income before tax
9,060

8,482

8,212

 
25,029

15,720

Income tax expense
2,942

2,754

2,506

 
8,127

4,884

Net income
$
6,118

$
5,728

$
5,706

 
$
16,902

$
10,836



5
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
 
As of and For the 
 Three Months Ended
 
As of and For the 
 Nine Months Ended
(Dollars in thousands, except per share data)
September 30,
June 30,
September 30,
 
September 30,
September 30,
 
2015
2015
2014
 
2015
2014
Per share and share data:
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
Basic
$
0.22

$
0.21

$
0.20

 
$
0.61

$
0.38

Diluted
$
0.22

$
0.20

$
0.20

 
$
0.60

$
0.37

Book value per common share
$
11.44

$
11.23

$
10.70

 
$
11.44

$
10.70

Tangible book value per common share (1)
$
9.61

$
9.39

$
8.87

 
$
9.61

$
8.87

Common shares outstanding, at end of period
28,027,695

28,000,695

28,712,779

 
28,027,695

28,712,779

Average common shares outstanding:
 
 
 
 
 
 
Basic
27,728,705

27,718,226

28,712,779

 
27,779,023

28,699,015

Diluted
28,281,244

28,184,048

29,005,151

 
28,207,659

29,138,533

 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
Return on average assets (2)
0.79
%
0.78
%
0.83
%
 
0.76
%
0.56
%
Return on average equity (2)
7.64
%
7.36
%
7.42
%
 
7.23
%
4.80
%
Net interest margin (2) (3)
2.32
%
2.38
%
2.50
%
 
2.38
%
2.62
%
Bank efficiency ratio (1)
64.93
%
60.78
%
58.34
%
 
62.36
%
59.82
%
Efficiency ratio (1)
69.15
%
66.98
%
65.29
%
 
67.72
%
64.57
%
Efficiency ratio, as adjusted (1)
67.59
%
65.50
%
63.77
%
 
66.20
%
63.20
%
Non-interest expense to average assets (2)
2.25
%
2.39
%
2.43
%
 
2.35
%
2.34
%
 
 
 
 
 
 
 
Asset quality:
 
 
 
 
 
 
Non-performing loans
$
19,119

$
24,978

$
26,898

 
$
19,119

$
26,898

Non-performing assets
$
20,885

$
26,744

$
28,311

 
$
20,885

$
28,311

Other real estate owned
$
1,766

$
1,766

$
1,413

 
$
1,766

$
1,413

Non-performing assets to total assets
0.67
%
0.89
%
1.03
%
 
0.67
%
1.03
%
Allowance for loan losses to loans
0.73
%
0.84
%
0.97
%
 
0.73
%
0.97
%
Allowance for loan losses to non-performing loans
101.21
%
85.70
%
83.19
%
 
101.21
%
83.19
%
Net charge-offs (recoveries)
$
716

$
(17
)
$
1,097

 
$
692

$
6,988

Net charge-offs (recoveries) to average total loans (2)
0.11
%
—
%
0.19
%
 
0.04
%
0.45
%
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
Total revenue (1)
$
25,020

$
26,249

$
25,536

 
$
76,766

$
69,609

Pre-tax, pre-provision net revenue (1)
$
7,719

$
8,667

$
8,863

 
$
24,781

$
24,660

 
 
 
 
 
 
 
Capital ratios:
 
 
 
 
 
 
Tangible equity to tangible assets (1)
8.75
%
8.86
%
9.43
%
 
8.75
%
9.43
%
Tier 1 leverage ratio
9.30
%
9.42
%
9.53
%
 
9.30
%
9.53
%
Common equity tier 1 risk-based capital ratio
12.22
%
12.23
%
N/A

 
12.22
%
N/A

Tier 1 risk-based capital ratio
12.22
%
12.23
%
9.60
%
 
12.22
%
9.60
%
Total risk-based capital ratio
13.99
%
14.45
%
11.52
%
 
13.99
%
11.52
%
 
 
 
 
 
 
 
Assets under management
$
7,625,000

$
8,124,000

$
7,578,000

 
$
7,625,000

$
7,578,000


(1) 
These measures are not measures recognized under GAAP and are therefore considered to be non-GAAP financial measures. See “Non-GAAP Financial Measures” for a reconciliation of these measures to their most directly comparable GAAP measures.
(2) 
Ratios are annualized.
(3) 
Net interest margin is calculated on a fully taxable equivalent basis.

6
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
AVERAGES AND YIELDS (UNAUDITED)
 
Three Months Ended
 
September 30, 2015
 
June 30, 2015
 
September 30, 2014
(Dollars in thousands)
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Interest-earning deposits
$
94,015

$
84

0.35
%
 
$
102,353

$
87

0.34
%
 
$
125,655

$
114

0.36
%
Federal funds sold
6,197

2

0.13
%
 
6,420

2

0.12
%
 
7,665

1

0.05
%
Investment securities available-for-sale
172,922

597

1.37
%
 
153,983

465

1.21
%
 
179,163

522

1.16
%
Investment securities held-to-maturity
45,941

454

3.92
%
 
40,051

384

3.85
%
 
39,903

323

3.21
%
Total loans
2,598,362

19,872

3.03
%
 
2,505,646

19,551

3.13
%
 
2,240,116

18,779

3.33
%
Total interest-earning assets
2,917,437

21,009

2.86
%
 
2,808,453

20,489

2.93
%
 
2,592,502

19,739

3.02
%
Other assets
139,372

 
 
 
136,861

 
 
 
131,451

 
 
Total assets
$
3,056,809

 
 
 
$
2,945,314

 
 
 
$
2,723,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking accounts
$
97,493

$
99

0.40
%
 
$
98,183

$
99

0.40
%
 
$
84,045

$
86

0.41
%
Money market deposit accounts
1,418,547

1,523

0.43
%
 
1,352,153

1,336

0.40
%
 
1,136,000

1,125

0.39
%
Time deposits (excluding CDARS®)
436,529

941

0.86
%
 
459,546

1,089

0.95
%
 
472,965

1,014

0.85
%
CDARS® time deposits
448,300

711

0.63
%
 
441,092

652

0.59
%
 
395,254

529

0.53
%
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
FHLB borrowing
130,054

156

0.48
%
 
79,176

78

0.40
%
 
132,609

127

0.38
%
Subordinated notes payable
35,000

554

6.28
%
 
35,000

554

6.35
%
 
35,000

554

6.28
%
Total interest-bearing liabilities
2,565,923

3,984

0.62
%
 
2,465,150

3,808

0.62
%
 
2,255,873

3,435

0.60
%
Noninterest-bearing deposits
148,323

 
 
 
137,647

 
 
 
125,668

 
 
Other liabilities
24,743

 
 
 
30,304

 
 
 
37,508

 
 
Shareholders' equity
317,820

 
 
 
312,213

 
 
 
304,904

 
 
Total liabilities and shareholders' equity
$
3,056,809

 
 
 
$
2,945,314

 
 
 
$
2,723,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
17,025

 
 
 
$
16,681

 
 
 
$
16,304

 
Net interest spread
 
 
2.24
%
 
 
 
2.31
%
 
 
 
2.42
%
Net interest margin (1)
 
 
2.32
%
 
 
 
2.38
%
 
 
 
2.50
%

(1) 
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.

7
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
AVERAGES AND YIELDS (UNAUDITED)
 
Nine Months Ended September 30,
 
2015
 
2014
(Dollars in thousands)
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
 
Average
Balance
Interest Income (1)/
Expense
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
Interest-earning deposits
$
104,953

$
273

0.35
%
 
$
173,697

$
437

0.34
%
Federal funds sold
6,143

4

0.09
%
 
7,715

3

0.05
%
Investment securities available-for-sale
162,838

1,550

1.27
%
 
175,312

1,648

1.26
%
Investment securities held-to-maturity
40,616

1,190

3.92
%
 
30,272

760

3.36
%
Total loans
2,510,374

58,534

3.12
%
 
2,077,090

54,308

3.50
%
Total interest-earning assets
2,824,924

61,551

2.91
%
 
2,464,086

57,156

3.10
%
Other assets
136,501

 
 
 
109,406

 
 
Total assets
$
2,961,425

 
 
 
$
2,573,492

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
Interest-bearing checking accounts
$
103,674

318

0.41
%
 
$
56,205

$
119

0.28
%
Money market deposit accounts
1,343,867

4,079

0.41
%
 
1,068,005

3,080

0.39
%
Time deposits (excluding CDARS®)
446,137

3,017

0.90
%
 
479,062

3,036

0.85
%
CDARS® time deposits
437,542

1,928

0.59
%
 
412,235

1,636

0.53
%
Borrowings:
 
 
 
 
 
 
 
FHLB borrowing
103,315

328

0.42
%
 
86,594

250

0.39
%
Subordinated notes payable
35,000

1,661

6.35
%
 
15,000

713

6.36
%
Total interest-bearing liabilities
2,469,535

11,331

0.61
%
 
2,117,101

8,834

0.56
%
Noninterest-bearing deposits
149,224

 
 
 
125,690

 
 
Other liabilities
30,026

 
 
 
28,873

 
 
Shareholders' equity
312,640

 
 
 
301,828

 
 
Total liabilities and shareholders' equity
$
2,961,425

 
 
 
$
2,573,492

 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
50,220

 
 
 
$
48,322

 
Net interest spread
 
 
2.30
%
 
 
 
2.54
%
Net interest margin (1)
 
 
2.38
%
 
 
 
2.62
%

(1) 
Net interest income and net interest margin are calculated on a fully taxable equivalent basis.


TRISTATE CAPITAL HOLDINGS, INC.
LOAN COMPOSITION (UNAUDITED)
 
September 30, 2015
 
June 30, 2015
 
September 30, 2014
(Dollars in thousands)
Loan
Balance
Percent of
Total Loans
 
Loan
Balance
Percent of
Total Loans
 
Loan
Balance
Percent of
Total Loans
Private banking channel loans
$
1,199,883

45.1
%
 
$
1,114,342

43.6
%
 
$
914,130

39.8
%
Middle-market banking channel loans:
 
 
 
 
 
 
 
 
Commercial and industrial
630,131

23.7
%
 
631,122

24.7
%
 
696,185

30.3
%
Commercial real estate
831,177

31.2
%
 
808,879

31.7
%
 
686,192

29.9
%
Total middle-market banking channel loans
1,461,308

54.9
%
 
1,440,001

56.4
%
 
1,382,377

60.2
%
Loans held-for-investment
$
2,661,191

100.0
%
 
$
2,554,343

100.0
%
 
$
2,296,507

100.0
%


8
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
STATEMENT OF INCOME BY REPORTABLE SEGMENT (UNAUDITED)
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
 
 
 
Interest income
$
20,883

$
—

$
57

$
20,940

 
$
19,635

$
—

$
46

$
19,681

Interest expense
3,430

—

554

3,984

 
2,918

—

517

3,435

Net interest income (loss)
17,453

—

(497
)
16,956

 
16,717

—

(471
)
16,246

Provision (credit) for loan losses
(1,341
)
—

—

(1,341
)
 
651

—

—

651

Net interest income (loss) after provision (credit) for loan losses
18,794

—

(497
)
18,297

 
16,066

—

(471
)
15,595

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

7,074

(54
)
7,020

 
—

7,470

(52
)
7,418

Net gain on the sale of investment securities available-for-sale
—

—

—

—

 
—

—

—

—

Other non-interest income
1,051

(7
)
—

1,044

 
1,875

(3
)
—

1,872

Total non-interest income
1,051

7,067

(54
)
8,064

 
1,875

7,467

(52
)
9,290

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

390

—

390

 
—

389

—

389

Other non-interest expense
12,015

4,936

(40
)
16,911

 
10,847

5,469

(32
)
16,284

Total non-interest expense
12,015

5,326

(40
)
17,301

 
10,847

5,858

(32
)
16,673

Income (loss) before tax
7,830

1,741

(511
)
9,060

 
7,094

1,609

(491
)
8,212

Income tax expense (benefit)
2,442

660

(160
)
2,942

 
1,971

673

(138
)
2,506

Net income (loss)
$
5,388

$
1,081

$
(351
)
$
6,118

 
$
5,123

$
936

$
(353
)
$
5,706



9
EXHIBIT 99

 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
 
 
 
Interest income
$
61,198

$
—

$
163

$
61,361

 
$
56,934

$
—

$
46

$
56,980

Interest expense
9,689

—

1,642

11,331

 
8,245

—

589

8,834

Net interest income (loss)
51,509

—

(1,479
)
50,030

 
48,689

—

(543
)
48,146

Provision (credit) for loan losses
(231
)
—

—

(231
)
 
10,368

—

—

10,368

Net interest income (loss) after provision (credit) for loan losses
51,740

—

(1,479
)
50,261

 
38,321

—

(543
)
37,778

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

22,332

(143
)
22,189

 
—

17,484

(103
)
17,381

Net gain on the sale of investment securities available-for-sale
17

—

—

17

 
1,428

—

—

1,428

Other non-interest income
4,553

(6
)
—

4,547

 
4,044

38

—

4,082

Total non-interest income
4,570

22,326

(143
)
26,753

 
5,472

17,522

(103
)
22,891

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

1,169

—

1,169

 
—

909

—

909

Other non-interest expense
34,958

15,931

(73
)
50,816

 
31,547

12,505

(12
)
44,040

Total non-interest expense
34,958

17,100

(73
)
51,985

 
31,547

13,414

(12
)
44,949

Income (loss) before tax
21,352

5,226

(1,549
)
25,029

 
12,246

4,108

(634
)
15,720

Income tax expense (benefit)
6,630

1,981

(484
)
8,127

 
3,336

1,726

(178
)
4,884

Net income (loss)
$
14,722

$
3,245

$
(1,065
)
$
16,902

 
$
8,910

$
2,382

$
(456
)
$
10,836


10
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES

The information set forth above contains certain financial information determined by methods other than in accordance with GAAP. These non-GAAP financial measures are “tangible equity,” “tangible equity to tangible assets,” “tangible book value per common share,” “total revenue,” “pre-tax, pre-provision net revenue,” and “efficiency ratio.” Although we believe these non-GAAP financial measures provide a greater understanding of our business, these measures are not necessarily comparable to similar measures that may be presented by other companies.

“Tangible equity” is defined as shareholders' equity reduced by intangible assets, including goodwill, if any. We believe this measure is important to management and investors to better understand and assess changes from period to period in shareholders' equity exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a business purchase combination, has the effect of increasing both equity and assets, while not increasing our tangible equity or tangible assets.

“Tangible equity to tangible assets” is defined as the ratio of shareholders' equity reduced by intangible assets, divided by total assets reduced by intangible assets. We believe this measure is important to many investors who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

“Tangible book value per common share” is defined as book value, excluding the impact of goodwill, if any, divided by common shares outstanding. We believe this measure is important to many investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill is an intangible asset that is recorded in a purchase business combination.

“Total revenue” is defined as net interest income and non-interest income, excluding gains and losses on the sale of investment securities available-for-sale. We believe adjustments made to our operating revenue allow management and investors to better assess our operating revenue by removing the volatility that is associated with certain other items that are unrelated to our core business.

“Pre-tax, pre-provision net revenue” is defined as net income, without giving effect to loan loss provision and income taxes, and excluding gains and losses on the sale of investment securities available-for-sale. We believe this measure is important because it allows management and investors to better assess our performance in relation to our core operating revenue, excluding the volatility that is associated with provision for loan losses or other items that are unrelated to our core business.

“Efficiency ratio” is defined as non-interest expense divided by our total revenue. “Efficiency ratio, as adjusted” is defined as non-interest expense, excluding non-recurring expenses associated with the Chartwell acquisition and intangible amortization expense, where applicable, divided by our total revenue. We believe this measure, particularly at the Bank, allows management and investors to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.


11
EXHIBIT 99

TRISTATE CAPITAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
 
September 30,
June 30,
September 30,
(Dollars in thousands, except per share data)
2015
2015
2014
Tangible equity to tangible assets:
 
 
 
Total shareholders' equity
$
320,540

$
314,398

$
307,359

Less: intangible assets
51,205

51,595

52,719

Tangible equity
$
269,335

$
262,803

$
254,640

Total assets
$
3,130,247

$
3,017,161

$
2,754,293

Less: intangible assets
51,205

51,595

52,719

Tangible assets
$
3,079,042

$
2,965,566

$
2,701,574

Tangible equity to tangible assets
8.75
%
8.86
%
9.43
%
 
 
 
 
Tangible book value per common share:
 
 
 
Tangible equity
$
269,335

$
262,803

$
254,640

Common shares outstanding
28,027,695

28,000,695

28,712,779

Tangible book value per common share
$
9.61

$
9.39

$
8.87

 
Three Months Ended
 
Nine Months Ended
 
September 30,
June 30,
September 30,
 
September 30,
September 30,
(Dollars in thousands)
2015
2015
2014
 
2015
2014
Pre-tax, pre-provision net revenue:
 
 
 
 
 
 
Net interest income
$
16,956

$
16,618

$
16,246

 
$
50,030

$
48,146

Total non-interest income
8,064

9,631

9,290

 
26,753

22,891

Less: net gain on the sale of investment securities available-for-sale
—

—

—

 
17

1,428

Total revenue
25,020

26,249

25,536

 
76,766

69,609

Less: total non-interest expense
17,301

17,582

16,673

 
51,985

44,949

Pre-tax, pre-provision net revenue
$
7,719

$
8,667

$
8,863

 
$
24,781

$
24,660

 
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
 
Total non-interest expense (numerator)
$
17,301

$
17,582

$
16,673

 
$
51,985

$
44,949

Total revenue (denominator)
$
25,020

$
26,249

$
25,536

 
$
76,766

$
69,609

Efficiency ratio
69.15
%
66.98
%
65.29
%
 
67.72
%
64.57
%
 
 
 
 
 
 
 
Efficiency ratio, as adjusted:
 
 
 
 
 
 
Less: nonrecurring expenses (1)
$
—

$
—

$
—

 
$
—

$
45

Less: intangible amortization expense
390

390

389

 
1,169

909

Total non-interest expense, as adjusted (numerator)
$
16,911

$
17,192

$
16,284

 
$
50,816

$
43,995

Total revenue (denominator)
$
25,020

$
26,249

$
25,536

 
$
76,766

$
69,609

Efficiency ratio, as adjusted
67.59
%
65.50
%
63.77
%
 
66.20
%
63.20
%

(1) 
Nonrecurring expenses include costs associated with the Chartwell transaction.


12
EXHIBIT 99

BANK SEGMENT
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
June 30,
September 30,
 
September 30,
September 30,
(Dollars in thousands)
2015
2015
2014
 
2015
2014
Bank pre-tax, pre-provision net revenue:
 
 
 
 
 
 
Net interest income
$
17,453

$
17,115

$
16,717

 
$
51,509

$
48,689

Total non-interest income
1,051

2,117

1,875

 
4,570

5,472

Less: net gain on the sale of investment securities available-for-sale
—

—

—

 
17

1,428

Total revenue
18,504

19,232

18,592

 
56,062

52,733

Less: total non-interest expense
12,015

11,690

10,847

 
34,958

31,547

Pre-tax, pre-provision net revenue
$
6,489

$
7,542

$
7,745

 
$
21,104

$
21,186

 
 
 
 
 
 
 
Bank efficiency ratio:
 
 
 
 
 
 
Total non-interest expense (numerator)
$
12,015

$
11,690

$
10,847

 
$
34,958

$
31,547

Total revenue (denominator)
$
18,504

$
19,232

$
18,592

 
$
56,062

$
52,733

Efficiency ratio
64.93
%
60.78
%
58.34
%
 
62.36
%
59.82
%



13

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