First Community Financial Partners, Inc. Announces Third Quarter 2016 Financial Results


Third Quarter 2016 Highlights

  • Acquisition and integration of Mazon State Bank
  • Diluted earnings per share (“EPS”) of $0.24 for the three months ended September 30, 2016
  • Pre-tax, pre-provision core income of $4.1 million, an increase of 10.70% from the second quarter 2016
  • Net income before taxes of $5.2 million, an increase of 55.10% from the second quarter 2016
  • Asset growth of $121.2 million, or 10.77%, from the second quarter of 2016
  • Loan growth of $84.3 million, or 9.66%, from the second quarter of 2016
  • Deposit growth of $168.4 million, or 18.78%, from the second quarter of 2016
  • Noninterest bearing deposits increase of $43.0 million, or 21.16%, from the second quarter 2016

JOLIET, Ill., Oct. 24, 2016 (GLOBE NEWSWIRE) -- First Community Financial Partners, Inc. (NASDAQ:FCFP) (“First Community,” “FCFP” or the “Company”), the parent company of First Community Financial Bank (the “Bank”), today reported financial results as of and for the three and nine months ended September 30, 2016.

Net income applicable to shareholders for the quarter ended September 30, 2016 was $4.1 million, or $0.24 per diluted share, compared with $2.9 million, or $0.17 per diluted share, for the quarter ended September 30, 2015.  Net income for the third quarter of 2016 was positively impacted by a $1.9 million bargain purchase option gain related to the acquisition of Mazon State Bank, partially offset by $643,000 of one-time merger-related expenses.

“We’re very pleased with our performance in the third quarter, which was highlighted by the successful completion of the Mazon State Bank acquisition and continued momentum in organic balance sheet growth,” said Roy Thygesen, Chief Executive Officer of First Community.  “The integration of Mazon has gone very smoothly as we are seeing strong adoption of our expanded offering of products and services by Mazon’s customers, and we are realizing the synergies we projected for this acquisition.”

“We had another strong quarter of business development, resulting in organic loan growth of 24% and organic growth in demand deposits of 43% on an annualized basis.  We are seeing particular strength in commercial loan production due to the expansion of our commercial banking team and our success in capitalizing on market disruption in the Chicagoland area.  We continue to have a strong loan and deposit pipeline that should continue to drive quality balance sheet growth and steady improvement in our core earnings power,” said Mr. Thygesen.

Mazon State Bank Acquisition

The Company closed its previously announced acquisition of Mazon State Bank on July 1, 2016.  Mazon State Bank had $81.7 million in assets, $32.6 million in loans, and $73.1 million in deposits (including $21.5 million of noninterest bearing deposits) as of the closing of the transaction on July 1, 2016.  Mazon State Bank also had $47.1 million in residential real estate loans sold and serviced.

Third Quarter 2016 Financial Results

Loans

At September 30, 2016, total loans were $956.2 million, an increase of  $84.0 million, or 9.63%, since the end of the second quarter of 2016 and $213.2 million, or 28.69%, year-over-year.   Excluding the $32.6 million in loans added through the Mazon State Bank acquisition, total organic loan growth was $51.7 million in the third quarter of 2016, or 23.71% on an annualized basis.  The organic loan growth was the result of a strong loan pipeline along with results produced by the addition of six commercial lenders and one new leasing officer hired during the first quarter of 2016.

Commercial loans grew $35.9 million, or 15.00%, since the end of the second quarter and $94.2 million, or 52.15%, year-over-year.  Commercial real estate loans increased $9.5 million, or 2.31%, since the end of the second quarter, and $51.1 million, or 13.84%, year-over-year.  Residential real estate loans grew $23.1 million, or 16.03%, since the end of the second quarter and $40.7 million, year-over-year.  Construction loans were up $9.4 million, or 30.55%, since the second quarter and $20.8 million, or 106.95%, year-over-year. 

Deposits and Other Borrowings

At September 30, 2016, total deposits were $1.07 billion, an increase of $168.4 million, or 18.78%, since the second quarter.  Excluding the $73.1 million in deposits added through the Mazon State Bank acquisition, total organic deposit growth was $95.3 million in the third quarter of 2016, or 42.6% on an annualized basis.

Noninterest bearing demand deposits increased $43.0 million, or 21.16%, since the end of the second quarter. Interest bearing transactional accounts (NOW, savings and money market accounts) increased $98.2 million ($34.4 million of which was from the acquisition of Mazon State Bank), or 25.68%, during the third quarter 2016.  Time deposits increased $27.3 million ($10.4 million of which was from the acquisition of Mazon State Bank), or 8.75%, to $338.7 million at September 30, 2016, from $311.4 million at June 30, 2016.   The ratio of time deposits to total deposits was 31.79% at September 30, 2016, down from 34.72% at June 30, 2016.  Other borrowings decreased $52.8 million, or 53.14%, since the end of the second quarter as a result of less reliance on FHLB borrowings after the acquisition of Mazon State Bank.

Net Interest Income and Margin

Third quarter 2016 net interest income was up $1.1 million, or 12.73%, from the second quarter of 2016. The increase was primarily attributable to an increase in average loan balances and higher net interest margin. 

The Company’s net interest margin was 3.44% for the third quarter of 2016, compared to 3.39% in the second quarter of 2016.  The increase was primarily attributable to a favorable shift in the mix of earning assets and an increase in noninterest bearing balances as a source of funding.

Noninterest Income and Expense

Third quarter 2016 noninterest income increased $1.5 million, or 123.45%, from the second quarter of 2016 and increased $2.0 million, or 260.60%, from the third quarter of 2015.  The increase was primarily attributable to a $1.9 million bargain purchase option gain related to the acquisition of Mazon State Bank that was recognized within non-interest income.

Service charges on deposits increased $82,000, or 39.61%, from the second quarter of 2016, which was primarily the result of the Mazon State Bank acquisition.  Securities gains of $14,000 were the result of $25.6 million in securities sold during the third quarter to fund loan growth.  Mortgage income was also up $46,000, or 39.66%, for the third quarter of 2016, as compared to the second quarter, as a result of higher mortgage sale volumes.

Third quarter 2016 noninterest expense increased $927,000, or 15.12%, from the second quarter of 2016. The increase from the second quarter was primarily related to the acquisition of Mazon State Bank, which included approximately $643,000 of one-time merger-related expenses.  Staffing expense related to the acquired locations was $349,000 in the third quarter.  In addition, other noninterest expense included $164,000 in stock option expense related to the merger as well as increases in other miscellaneous expenses. 

Asset Quality

Total nonperforming assets increased $4.4 million, or 90.38%, to $9.2 million at September 30, 2016 from June 30, 2016.  The ratio of nonperforming assets to total assets was 0.74% at September 30, 2016 compared to 0.43% at June 30, 2016.  The increase in total nonperforming assets was the result of the addition of one loan relationship to nonaccrual totaling $4.5 million, partially offset by the sales of other real estate owned of $1.5 million during the quarter ended September 30, 2016. 

The Company had net charge-offs on loans of $143,000 in the third quarter of 2016, compared to net recoveries of $209,000 in the second quarter of 2016.

The ratios of the Company’s allowance for loan losses to nonperforming loans and allowance to total loans were 144.93% and 1.28% at September 30, 2016, respectively.

The Company recorded a provision for loan losses in the third quarter of 2016 of $383,000 compared to a reversal of $813,000 for the same period in 2015.  The current year provision was the result of the loan growth experienced during the third quarter of 2016.

About First Community Financial Partners, Inc.: First Community Financial Partners, Inc., headquartered in Joliet, Illinois, is a bank holding company whose common stock trades on the NASDAQ Capital Market (NASDAQ:FCFP). First Community Financial Partners has one bank subsidiary, First Community Financial Bank. First Community Financial Bank, based in Plainfield, Illinois, has locations in Joliet, Plainfield, Homer Glen, Channahon, Naperville, Burr Ridge, Mazon, Braidwood, and Diamond, Illinois. The Bank is dedicated to its founding principles by being actively involved in the communities it serves and providing exceptional personal service delivered by experienced local professionals.

Special Note Concerning Forward-Looking Statements

Any statements in this release other than statements of historical facts, including statements about management’s beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. Words such as “estimate,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “should,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Forward-looking statements (including oral representations) involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. These risks and uncertainties involve a number of factors related to the businesses of First Community and its wholly owned bank subsidiary, including: risks associated with First Community’s possible pursuit of acquisitions; unexpected results of acquisitions, including the acquisition of Mazon State Bank; economic conditions in First Community’s, and its wholly owned bank subsidiary’s service areas; system failures; losses of large customers; disruptions in relationships with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management personnel in the future; the impact of legislation and regulatory changes on the banking industry, including the implementation of the Basel III capital reforms; losses related to cyber-attacks; and liability and compliance costs regarding banking regulations; and changes in local, national and international economic conditions. These and other risks and uncertainties are discussed in more detail in First Community’s filings with the Securities and Exchange Commission, including First Community’s Annual Report on Form 10-K filed on March 14, 2016.

Many of these risks are beyond management’s ability to control or predict. All forward-looking statements attributable to First Community, and its wholly owned bank subsidiary, or persons acting on behalf of each of them are expressly qualified in their entirety by the cautionary statements and risk factors contained in this communication. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, First Community does not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.


FINANCIAL SUMMARY    
      
 September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
Period-End Balance Sheet     
(In thousands)(Unaudited)    
Assets     
Cash and due from banks$21,622 $13,777 $9,132 $10,699 $10,110 
Interest-bearing deposits in banks33,349 19,335 30,558 7,406 21,324 
Securities available for sale188,062 179,517 203,874 205,604 215,827 
Mortgage loans held for sale1,331 711 133 400  
Leases, net739 448    
Commercial real estate419,958 410,461 378,304 381,098 368,896 
Commercial274,889 239,038 181,142 179,623 180,674 
Residential 1-4 family166,971 143,908 139,208 135,864 126,316 
Multifamily31,880 30,809 31,511 34,272 30,771 
Construction and land development40,253 30,834 27,798 22,082 19,451 
Farmland and agricultural production12,985 9,235 9,060 9,989 8,984 
Consumer and other9,280 7,924 7,250 9,391 7,963 
Total loans956,216 872,209 774,273 772,319 743,055 
Allowance for loan losses12,284 12,044 11,335 11,741 11,753 
Net loans943,932 860,165 762,938 760,578 731,302 
Other assets57,563 51,409 54,227 55,965 44,869 
Total Assets$1,246,598 $1,125,362 $1,060,862 $1,040,652 $1,023,432 
      
Liabilities and Shareholders' Equity    
Noninterest bearing deposits$246,262 $203,258 $204,414 $196,063 $174,849 
Savings deposits61,399 40,603 38,481 36,206 34,933 
NOW accounts151,243 103,324 104,136 102,882 101,828 
Money market accounts267,667 238,229 237,873 233,315 232,195 
Time deposits338,680 311,416 294,076 297,525 302,892 
Total deposits1,065,251 896,830 878,980 865,991 846,697 
Total borrowings61,879 114,701 72,237 68,315 72,551 
Other liabilities4,304 2,722 2,855 3,305 4,065 
Total Liabilities1,131,434 1,014,253 954,072 937,611 923,313 
Shareholders’ equity115,164 111,109 106,790 103,041 100,119 
Total Shareholders’ Equity115,164 111,109 106,790 103,041 100,119 
Total Liabilities and Shareholders’ Equity$1,246,598 $1,125,362 $1,060,862 $1,040,652 $1,023,432 


FINANCIAL SUMMARY     
 Three months ended,
 September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
Interest income:(In thousands, except per share data)(Unaudited)
Loans, including fees$10,229 $9,024 $8,508 $8,401 $8,218 
Securities1,041 1,042 1,101 1,117 1,103 
Federal funds sold and other43 21 19 19 19 
Total interest  income11,313 10,087 9,628 9,537 9,340 
Interest expense:     
Deposits1,081 957 940 986 973 
Federal funds purchased and other borrowed funds112 119 93 87 98 
Subordinated debentures297 297 297 297 297 
Total interest expense1,490 1,373 1,330 1,370 1,368 
Net interest income9,823 8,714 8,298 8,167 7,972 
Provision for loan losses383 500  (515)(813)
Net interest income after provision for loan losses9,440 8,214 8,298 8,682 8,785 
Noninterest income:     
Service charges on deposit accounts289 207 204 190 188 
Gain on sale of loans7     
Gain on sale of securities14 603  212 251 
Mortgage fee income162 116 78 96 178 
Bargain purchase gain1,920     
Other381 315 273 261 152 
Total noninterest income2,773 1,241 555 759 769 
Noninterest expenses:     
Salaries and employee benefits3,812 3,311 3,256 3,004 2,841 
Occupancy and equipment expense568 429 437 494 486 
Data processing700 690 257 203 248 
Professional fees369 375 392 68 342 
Advertising and business development328 262 215 219 217 
Losses on sale and writedowns of foreclosed assets, net1 31 16 109 58 
Foreclosed assets expenses, net of rental income(99)60 53 50 (61)
Other expense1,380 974 1,310 898 1,005 
Total noninterest expense7,059 6,132 5,936 5,045 5,136 
Income before income taxes5,154 3,323 2,917 4,396 4,418 
Income taxes1,019 1,058 889 1,474 1,471 
Net income applicable to common shareholders$4,135 $2,265 $2,028 $2,922 $2,947 
      
Basic earnings per share$0.24 $0.13 $0.12 $0.17 $0.17 
      
Diluted earnings per share$0.24 $0.13 $0.12 $0.17 $0.17 


 Nine months ended September 30,
 20162015
Interest income:(dollars in thousands, except per share data)(unaudited)
Loans, including fees$27,761 $24,124 
Securities3,184 3,017 
Federal funds sold and other83 47 
Total interest  income31,028 27,188 
Interest expense:  
Deposits2,978 2,937 
Federal funds purchased and other borrowed funds324 129 
Subordinated debentures891 1,503 
Total interest expense4,193 4,569 
Net interest income26,835 22,619 
Provision for loan losses883 (1,562)
Net interest income after provision for loan losses25,952 24,181 
Noninterest income:  
Service charges on deposit accounts700 565 
Gain on sale of securities617 272 
Mortgage fee income356 435 
Bargain purchase gain1,920  
Other969 465 
 4,569 1,737 
Noninterest expenses:  
Salaries and employee benefits10,379 8,535 
Occupancy and equipment expense1,434 1,483 
Data processing1,647 710 
Professional fees1,136 1,134 
Advertising and business development805 633 
Losses on sale and writedowns of foreclosed assets, net14 78 
Foreclosed assets expenses, net of rental income50 80 
Other expense3,663 2,840 
 19,128 15,493 
Income before income taxes11,393 10,425 
Income taxes2,966 3,527 
Net income$8,427 $6,898 
   
Basic earnings per share$0.49 $0.41 
   
Diluted earnings per share$0.48 $0.40 


 Three months ended,
 September 30, 2016June 30, 2016September 30, 2015
 Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Assets(Dollars in thousands)(Unaudited)
Loans (1)$919,777 $10,229 4.45%$826,416 $9,024 4.37%$731,871 $8,218 4.49%
Investment securities (2)199,139 1,041 2.09%190,924 1,042 2.18%207,843 1,103 2.12%
Interest-bearing deposits with other banks24,580 43 0.70%11,465 21 0.73%23,790 19 0.32%
Total earning assets$1,143,496 $11,313 3.96%$1,028,805 $10,087 3.92%$963,504 $9,340 3.88%
Other assets74,740   50,707   47,787   
Total assets$1,218,236   $1,079,512   $1,011,291   
          
Liabilities         
NOW accounts$122,727 $90 0.29%$109,354 $81 0.30%$98,915 $64 0.26%
Money market accounts260,070 190 0.29%232,004 162 0.28%234,898 166 0.28%
Savings accounts62,179 15 0.10%39,525 12 0.12%34,447 15 0.17%
Time deposits326,860 786 0.96%292,811 702 0.96%300,476 728 0.97%
Total interest bearing deposits771,836 1,081 0.56%673,694 957 0.57%668,736 973 0.58%
Securities sold under agreements to repurchase23,339 10 0.17%21,650 9 0.17%33,112 11 0.13%
Secured borrowings7,752 58 2.99%9,261 66 2.85%13,406 86 2.57%
Mortgage payable  %  %  %
FHLB borrowings42,391 44 0.42%44,615 44 0.33%1,413 1 0.28%
Subordinated debentures15,300 297 7.76%15,300 297 7.76%15,300 297 7.76%
Total interest bearing liabilities$860,618 $1,490 0.69%$764,520 $1,373 0.72%$731,967 $1,368 0.75%
Noninterest bearing deposits239,802   204,016   176,040   
Other liabilities3,726   2,544   5,117   
Total liabilities$1,104,146   $971,080   $913,124   
          
Total shareholders’ equity$114,090   $108,432   $98,167   
          
Total liabilities and shareholders’ equity$1,218,236   $1,079,512   $1,011,291   
          
Net interest income $9,823   $8,714   $7,972  
          
Interest rate spread  3.27%  3.20%  3.13%
          
Net interest margin  3.44%  3.39%  3.31%


Footnotes:
(1) Average loans include nonperforming loans.
(2) No tax-equivalent adjustments were made, as the effect thereof was not material.


 Nine months ended September 30,
 September 30, 2016September 30, 2015
 Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Assets(Dollars in thousands)(Unaudited)
Loans (1)$830,640 $27,761 4.46%$717,473 $24,124 4.48%
Investment securities (2)198,867 3,184 2.13%193,212 3,017 2.08%
Federal funds sold  %  %
Interest-bearing deposits with other banks16,464 83 0.67%16,892 47 0.37%
Total earning assets$1,045,971 $31,028 3.96%$927,577 $27,188 3.91%
Other assets68,064   45,933   
Total assets$1,114,035   $973,510   
       
Liabilities      
NOW accounts$112,221 $242 0.29%$87,578 $139 0.21%
Money market accounts242,098 514 0.28%220,448 457 0.28%
Savings accounts46,357 38 0.11%33,074 42 0.17%
Time deposits304,138 2,184 0.96%303,240 2,299 1.01%
Total interest bearing deposits704,814 2,978 0.56%644,340 2,937 0.61%
Securities sold under agreements to repurchase22,965 27 0.16%30,355 25 0.11%
Secured borrowings9,175 200 2.91%4,569 88 2.57%
Mortgage payable  %241 14 7.75%
FHLB borrowings33,059 97 0.39%1,154 2 0.23%
Subordinated debentures15,300 891 7.76%24,424 1,503 8.21%
Total interest bearing liabilities$785,313 $4,193 0.71%$705,083 $4,569 0.86%
Noninterest bearing deposits216,430   168,316   
Other liabilities3,113   4,221   
Total liabilities$1,004,856   $877,620   
       
Total shareholders’ equity$109,179   $95,890   
       
Total liabilities and shareholders’ equity$1,114,035   $973,510   
       
Net interest income $26,835   $22,619  
       
Interest rate spread  3.25%  3.05%
       
Net interest margin  3.42%  3.25%


Footnotes:
(1) Average loans include nonperforming loans.
(2) No tax-equivalent adjustments were made, as the effect thereof was not material.


COMMON STOCK DATA    
      
 20162015
 Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
Third
Quarter
 (Unaudited)
Market value (1):     
End of period$9.52 $8.80 $8.70 $7.24 $6.51 
High9.55 9.10 8.84 7.31 7.00 
Low8.35 8.18 7.00 6.26 6.25 
Book value (end of period)6.68 6.47 6.22 6.05 5.88 
Tangible book value (end of period)6.62 6.47 6.22 6.05 5.88 
Shares outstanding (end of period)17,237,845 17,183,780 17,175,864 17,026,941 17,017,441 
Average shares outstanding17,189,113 17,182,197 17,125,928 16,939,010 16,993,822 
Average diluted shares outstanding17,565,667 17,550,547 17.451354 17,085,752 17,161,783 


(1)  The prices shown are as reported on the NASDAQ Capital Market


ASSET QUALITY DATA     
      
 September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
(Dollars in thousands)(Unaudited)     
Loans identified as nonperforming$8,385 $2,622 $2,146 $1,411 $3,117 
Other nonperforming loans91   67 55 
Total nonperforming loans8,476 2,622 2,146 1,478 3,172 
Foreclosed assets725 2,211 5,231 5,487 4,109 
Total nonperforming assets$9,201 $4,833 $7,377 $6,965 $7,281 
      
Allowance for loan losses$12,284 $12,044 $11,335 $11,741 $11,753 
Nonperforming assets to total assets0.74%0.43%0.70%0.67%0.71%
Nonperforming loans to total assets0.68%0.23%0.20%0.14%0.31%
Allowance for loan losses to nonperforming loans144.93%459.34%528.19%794.38%370.52%


ALLOWANCE FOR LOAN LOSSES ROLLFORWARD  
(Dollars in thousands)(Unaudited)Three months ended,
 September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
Beginning balance$12,044 $11,335 $11,741 $11,753 $12,420 
Charge-offs340 193 506 133 654 
Recoveries197 402 100 636 800 
Net charge-offs143 (209)406 (503)(146)
Provision for loan losses383 500  (515)(813)
Ending balance$12,284 $12,044 $11,335 $11,741 $11,753 
      
Net charge-offs$143 $(209)$406 $(503)$(146)
Net chargeoff percentage annualized0.06%(0.11)%0.21%(0.26)%(0.08)%


OTHER DATA     
(Unaudited)     
 Three months ended,
 September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
Return on average assets1.36%0.84%0.78%1.11%1.17%
Return on average equity14.50%8.36%7.68%11.48%12.01%
Net interest margin3.44%3.39%3.36%3.29%3.31%
Average loans to assets75.50%76.55%73.63%72.12%72.37%
Average loans to deposits90.92%94.16%88.00%85.95%86.63%
Average noninterest bearing deposits to total deposits22.51%22.75%23.35%23.45%20.79%
      
COMPANY CAPITAL RATIOS     
(Unaudited)September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
September 30,
2015
Tier 1 leverage ratio9.15%9.77%9.72%9.36%9.39%
Common equity tier 1 capital ratio10.84%11.26%11.94%11.62%11.57%
Tier 1 capital ratio10.84%11.26%11.94%11.62%11.57%
Total capital ratio13.52%14.14%14.99%14.69%14.71%
Tangible common equity to tangible assets9.24%10.47%10.26%10.07%10.07%


NON-GAAP MEASURES    
      
Pre-tax pre-provision core income (1)    
(In thousands)(Unaudited)     
 For the three months ended,
 September 30, 2016June 30, 2016March 31, 2016December 31, 2015September 30, 2015
Pre-tax net income$5,154 $3,323 $2,917 $4,396 $4,418 
Provision for loan losses383 500  (515)(813)
Gain on sale of securities(14)(603) (212)(251)
Merger related expenses included in professional fees24 26 100   
Merger related expenses included in data processing fees363 410    
Severances paid in relation to the merger92     
Stock options included in other expense164     
Bargain purchase option(1,920)    
Losses (gain) on sale and writedowns of foreclosed assets, net1 31 16 109 58 
Foreclosed assets expense, net of rental income(99)60 53 50 (61)
Pre-tax pre-provision core income$4,148 $3,747 $3,086 $3,828 $3,351 


(1) This is a non-GAAP financial measure.  In compliance with applicable rules of the Securities and Exchange Commission, this non-GAAP measure is reconciled to pre-tax net income, which is the most directly comparable GAAP financial measure.  The Company’s management believes the presentation of pre-tax pre-provision core income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP.



            

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