Talmer Bancorp reports drop in 1Q earnings


Staff report

YOUNGSTOWN

Due to recent acquisitions, Troy, Mich.-based Talmer Bancorp Inc. reported a sharp drop in net income for the first quarter of 2015 compared with the same quarter in 2014.

The holding company of Talmer Bank and Trust earned $9.4 million in the first quarter of 2015 net income compared with $38.2 million for the first quarter of 2014. The company earned $12.5 million for the fourth quarter of 2014.

The drop resulted from Talmer’s acquisition of Michigan-based First of Huron Corp., the holding company of Signature Bank, that was completed in February. Additional expenses also included the completed integration of Talmer West Bank.

“We continue to execute on our strategic plans to build a leading Midwest community bank,” Talmer Bancorp President and CEO David Provost said in a statement. “We are excited to welcome the employees and customers of Signature Bank and build upon our franchise in the thumb area of Michigan.”

Provost said earnings were significantly impacted by $3.3 million of transaction- and integration-related expenses, and $4.1 million in changes to the fair value of the company’s loan- servicing rights.

The bank’s earnings per diluted common share were $0.12 for the first quarter of 2015, compared with $0.16 for the fourth quarter of 2014 and $0.52 for the first quarter of 2014.

Net total loans for the bank increased to $4.4 billion in the first quarter of 2015, compared with $3.6 billion during the same period a year ago.

Total deposits also increased to $4.8 billion in the first three months this year, compared with the fourth quarter of 2014. The growth included $201.5 million of deposits acquired at fair value in the Signature Bank transaction.

Further, noninterest expense increased to $56.6 million in the first quarter of 2015, compared with the previous quarter, which includes the increase from transaction and integration related expenses.

“We expect to see an incremental improvement in our core operating efficiency in the second quarter reflecting the success of integrating our two most-recent acquisitions,” Provost said. “Our team remains optimistic about the substantial growth opportunities in our existing markets and continues to be well-prepared to pursue additional acquisitions.”

Additionally, the board of directors of Talmer declared a cash dividend on its Class A common stock of $0.01 per share April 29. The dividend will be paid May 22 to Class A common shareholders of record as of May 11.

Talmer Bank and Trust is the sixth-largest bank in the Youngstown area.

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