Seacoast Achieves Ambitious 2016 Earnings Goal And Establishes Guidance for 2017

STUART, Fla., Feb. 1, 2017 /PRNewswire/ -- Seacoast Banking Corporation of Florida ("Seacoast" or "the Company") (NASDAQ: SBCF) today reported results for the fourth quarter and full year 2016. 

Full-year 2016 net income improved $7.1 million to $29.2 million, up 32%; and fully diluted earnings per share increased 18% to $0.78 compared with $0.66 per diluted common share in 2015.  Adjusted net income¹ increased to $37.5 million in 2016 from $25.3 million in 2015, up 48%; and adjusted diluted earnings per share¹ rose 33% to $1.00 for the year, meeting Seacoast's 2016 earnings target. 

Fourth quarter 2016 net income totaled $10.8 million, an increase of $4.7 million, or 78%, from the same period of the prior year; and rose $1.6 million or 18% compared with third quarter 2016 levels.  Adjusted net income¹ increased $4.8 million, or 73%, from year-ago levels and $0.7 million or 7%, above the third quarter.  Diluted earnings per common share (EPS) were $0.28 and adjusted diluted EPS¹ were $0.30 in the fourth quarter, compared to diluted EPS of $0.18 and adjusted diluted EPS¹ of $0.19 in the fourth quarter last year.

Seacoast announced 2017 earnings guidance with expected full year adjusted EPS of $1.24 to $1.28 per share. 

Growth and Transformation Highlights Reflect Significant Franchise Gains

• Loans grew $723 million, or 34%, from year-ago levels.  Adjusting for acquisitions, loan growth was $383 million, or 18%.  Loans increased $110 million sequentially, recording a 16% annualized growth rate.
• Seacoast maintained its balanced growth focus and conservative risk posture ending the year with commercial real estate loan concentration levels well below regulatory guidance.
• Seacoast's customer-analytics-driven transformation continues with debit card spend up 17% year-over-year, a new high, consumer loans sold to existing customers up 62% and 37% of deposits made outside the branch.

Financial Highlights Reflect Significant Efficiency Gains

• Full year total revenues increased $35.3 million, or 25%, year-over-year to $177.4 million, reflecting significant franchise growth.  Fourth quarter revenues increased $10.1 million, or 27%, from fourth quarter 2015 levels.
• Fourth quarter efficiency ratio improved to 62.4%, down from 72.6% in the fourth quarter 2015. Adjusted efficiency ratio¹ was 60.8% an 830 basis points improvement from fourth quarter 2015.
• Fourth quarter return on average assets (ROA) and return on average equity (ROE) improved to 0.94% and 9.80%, up from 0.69% and 6.78%, respectively, in the fourth quarter 2015. Adjusted ROA¹ was 0.99%, a 24 basis points improvement over fourth quarter 2015. Adjusted return on tangible common equity¹ (ROTCE) gained 420 basis points, reaching 13.1% during the fourth quarter.

Dennis S. Hudson, III, Chairman and CEO said, "We are pleased that we achieved our $1.00 adjusted EPS goal for 2016. Seacoast's execution of our balanced growth strategy and continuing transformation drove exceptional franchise growth and performance improvement, allowing us to overcome unanticipated headwinds from a declining rate environment over much of 2016. 

"Continued analytics-driven marketing and improved sales execution, combined with the favorable Florida economy, drove record loan production.  This produced 16% annualized growth in total loans as compared with the third quarter of this year. We continue to honor our lending guardrails, resulting in a balanced approach and a well-diversified loan portfolio. Our portfolio remains extremely granular, with low commercial real estate concentration of approximately 214% of total capital.

"The fourth quarter also reflects the first full quarter of benefit from our 2016 acquisitions.  Organic growth, targeted expense reduction strategies, and successful merger implementations drove significant continued operating leverage.  Year-over-year revenues grew 27%, outpacing a twelve percent increase in noninterest expense over the corresponding period.  Adjusted revenues,¹ excluding securities gains and a bargain purchase gain taken in Q4 2015, grew 28%, outpacing a 14% increase in adjusted expenses¹ over this same period.

"On an annual basis, we've now moved nearly 1 million basic check deposits out of our branch network and in to lower cost channels like ATMs and mobile.  When looking at all routine transactions in total, our customers are increasingly choosing more convenient channels to manage routine transactions.  At this point, we expect we'll process more routine transactions through lower cost channels than in our branch network by July of this year.

"One year ago, we announced our $1.00 adjusted EPS goal for 2016.  This was an aggressive target, a 33% increase from the prior year. We achieved that goal, and exited 2016 with improved results in all key performance measures and strong momentum in each of our business units.  Adjusted ROA1 improved 24 basis points to 0.99% and adjusted ROTCE¹ increased 420 basis points to 13.1% during last year.

"We begin 2017 with much improved performance and on a trajectory to outperform our peers. We will provide a broader discussion of our strategy to deliver long-term value for our shareholders and our three-year expectations at our upcoming investor day on February 22, 2017," Hudson concluded.

Acquisitions Update
During the fourth quarter, we announced our acquisition of GulfShore Bancshares, Inc. ("GulfShore") which accelerated our entry into the fast-growing, business-rich Tampa market, Florida's second largest. We look forward to welcoming GulfShore's customers to Seacoast following the integration, which is expected to be completed in the second quarter of 2017. 

"In Tampa, we intend to follow our Orlando playbook, which has made us a Top Ten bank in only 20 months. In the first half of 2016, we acquired Floridian Financial Corporation and BMO Harris' Orlando banking operations, making us the largest Florida-based bank in Orlando. Orlando now represents 37% of our franchise, measured by deposits, up from virtually no presence three years ago," Hudson said. 

Florida Economic Update
"Economic indicators continue to show strength for Florida's economy and housing market," Hudson commented.  "A December 2016 report released by Wells Fargo Securities Economics Group commented, 'The recently updated state GDP data and the Quarterly Census of Employment and Wages (QCEW) provide additional insight into Florida's recent strong economic performance.  Florida's economy grew 2.9 percent year to year in Q2, far exceeding the nation's 1.2 percent growth."  Hudson continued, "Their November report forecasted, 'We look for Florida's strong run of economic growth to carry over into 2017, albeit at a slightly more modest pace.  Real GDP should grow 3.3 percent next year and nonfarm payrolls should add around 235,000 new jobs.  Homebuilding should continue to gain momentum, as stronger jobs and income growth boosts household formation and encourages more job seekers to move to Florida.²

"Florida's residential real estate market remains solid.  November statistics released by Florida REALTORS continue to show a year-over-year increase in closed sales and median sales price, with time to contract continuing a shortening trend.  With this improvement, however, home prices still remain well below pre-recession levels." Hudson concluded.³

Management Update
"On January 26th, we announced that Charles M. (Chuck) Shaffer, who is currently executive vice president and head of community banking, was appointed chief financial officer and head of strategy, effective March 15th. This appointment reflects our commitment to identify and groom talent that will support the execution of our long-term growth strategy. Having spent nearly 20 years with Seacoast, across a variety of operational and financial roles, Chuck has the perfect complement of skills to lead Seacoast's financial and strategic initiatives. I would also like to thank Steve Fowle for his invaluable contribution to Seacoast's transformation over the past two years and wish him well in his next endeavor.

"I am also pleased to announce that we have appointed Julie Kleffel, currently executive vice president and head of small-business banking, to succeed Chuck as head of community banking, which includes our small-business unit. Julie has been a major asset in the growth of our small-business operations and possesses the leadership qualities that will enable her to continue to succeed in this new role," Hudson stated.

Conference Call and Investor Day Information
Seacoast will host a conference call on Thursday, February 2, 2017 at 10:00 a.m. (Eastern Time) to discuss the earnings results.  Investors may call in (toll-free) by dialing (800)-774-6070 (passcode: 9408 151). Slides will be used during the conference call and may be accessed at Seacoast's website at SeacoastBanking.com by selecting "Presentations" under the heading "Investor Services."  A replay of the call will be available for one month, beginning late afternoon of February 2, by dialing (888) 843-7419 and using passcode:  9408 151.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Investor Services." Beginning the afternoon of February 2, an archived version of the webcast can be accessed from this same subsection of the website.  The archived webcast will be available for one year.   

In addition, Seacoast will host an investor day in New York on Wednesday, February 22 from 8:00 a.m. to 12:00 p.m. Eastern Standard Time. Investors wishing to attend may contact Debra Policino via email at Debra.Policino@seacoastbank.com. The investor day will also be webcast and details will be provided closer to the date.

Fourth Quarter 2016 Income Statement Highlights

Strong Organic Growth Drives Continued Net Interest Income Improvement
Net interest income for the quarter totaled $37.4 million, an $8.3 million, or 29%, increase from fourth quarter 2015 levels.  Net interest margin was 3.56%, down 11 basis points from the prior year. Year-over-year net interest income improvement reflects strong organic loan growth combined with growth from successful acquisitions in the first half of the year.  The decrease in margin reflects decreased loan yields, reflecting the current low interest rate environment, partially offset by improved balance sheet mix.

Net interest income was level compared to the third quarter of 2016 and net interest margin decreased 13 basis points from 3.69% in the prior quarter.  While quarter over quarter the Company recorded strong loan growth, the decrease reflects lower purchased loan accretion (approximately 6 basis points) combined with  the impact of wholesale leverage (approximately 5 basis points) which improved net interest income and reduced margin.

Noninterest Income Growth Benefits from Acquisitions, Loan Growth
Noninterest income totaled $9.9 million for the fourth quarter of 2016, $1.7 million, or 21%, above the $8.2 million recorded in the same quarter of 2015.  Excluding securities gains and a bargain purchase gain taken in the fourth quarter 2015, noninterest income totaled $9.9 million, $2.1 million, or 27%, above last year.  Significant contributors to the increase in noninterest income include mortgage banking revenue, which increased $0.7 million, or 69%, from the year-ago period; deposit service charges, which increased $0.4 million, or 17%; interchange income, which increased $0.3 million, or 17%; other income, which increased $0.5 million, or 75%, and bank owned life insurance ("BOLI")  income which increased $0.2 million, or 54%, due to additional purchases during the quarter.

Noninterest income excluding securities gains increased $0.2 million from third quarter 2016 levels.  Declines of $0.3 million in mortgage banking fees during the quarter were more than offset by increases in wealth management fees, up $0.2 million, or 13%, as a result of customer growth, additional BOLI income, up $0.2 million, or 60%, and growth-driven increases in transaction based services (service charges on deposits, interchange income, other deposit fees and other fees).  Transaction-based revenue increased, in aggregate, despite the disruption of Hurricane Matthew in October.

Noninterest Expense Growth Reflects Merger Activity
Noninterest expense increased $3.1 million from the fourth quarter of 2015, including $1.6 million higher compensation-related costs.  Fourth quarter 2016 expenses were impacted by $0.7 million in acquisition and other nonrecurring expenses compared to $1.3 million in the fourth quarter of 2015.  Adjusted noninterest expense¹ increased $3.7 million from prior-year levels.  The year-over-year increase in adjusted expense reflects ongoing costs related to the acquisitions of Floridian Financial Group and BMO Harris' Orlando operations, including salaries and benefits, occupancy and equipment, and data processing costs associated with the acquisitions, and costs to support significant organic growth and investment in the franchise.  Revenues, excluding securities gains and the bargain purchase gain recognized in fourth quarter 2015, grew $10.3 million, or 28%, compared to prior year levels while adjusted noninterest expense¹ grew 14% primarily related to salaries, data processing, and occupancy expenses, which increased $1.7 million, $0.8 million, and $0.5 million, respectively. 

Noninterest expense decreased $3.1 million from the third quarter 2016, partially due to a higher level of merger expenses and other nonrecurring expenses recorded in the third quarter.    Of the salary decrease of $1.7 million, $0.9 million related to accrual reversals for cash and stock compensation incentives that we anticipate will start accruing again during first quarter 2017.  Adjusted noninterest expense1 declined $1.3 million, or 4%. Contributing to the lower adjusted noninterest expense¹ during the fourth quarter of 2016 were $1.2 million of  reductions for salary costs, occupancy, and data processing expense. 

Fourth Quarter 2016 Balance Sheet Highlights

Strong Originations Drive Loan Portfolio Even Higher
Net loans totaled $2.88 billion, an increase of $723 million, or 34%, above the fourth quarter 2015.  Excluding acquisitions, loans increased $383 million, or 18%, above the prior year.  Loans increased $110 million or 16%, annualized, from third quarter 2016.      

Loan production continued at a record pace for a second consecutive quarter.  Commercial loan originations reached $145 million, a record quarter and well ahead of $80 million of production in the fourth quarter of 2015.  The commercial pipeline (in underwriting and approval or approved and not yet closed) totaled $89 million at December 31, 2016. 

Consumer loan and small business originations totaled $83 million during the fourth quarter of 2016 compared to $60 million one year ago. Closed residential production for the quarter totaled $119 million compared with $60 million during the fourth quarter 2015, with a total residential pipeline of $73 million as of December 31, 2016, up from a pipeline of $30 million one year ago.  

Credit Quality Remains Stable and Strong
The provision for loan losses was $1.0 million for the fourth quarter of 2016, up from $369,000 in the fourth quarter 2015 and $550,000 recorded in the third quarter 2016.  The higher provision was the result of  strong loan growth along with net charge-offs of $283,000 during the quarter, compared to $1.4 million in net recoveries collected during the third quarter 2016 and $569,000 in net charge-offs in the fourth quarter 2015. The ratio of allowance for loan losses to non-acquired loans was 0.96% as of December 31 2016, a slight decrease from 1.00% as of September 30, 2016. 

Additional highlights include:

• Nonperforming assets to total assets declined to 0.60%, compared to 0.69% one year ago. Of $28.0 million in nonperforming assets, nine properties at a carrying value of $5.7 million relate to closed branch properties held as REO.
• The ratio of allowance for loan losses to nonperforming loans stood at 106.8%, more than covering nonperforming loans.

Deposits Built on Core Customer Growth and Acquired Deposits
Total deposits were $3.52 billion as of December 31, 2016, $679 million or 24% above the fourth quarter 2015.  Core customer funding increased to $3.38 billion, a $653 million or 24% increase.  Excluding acquisitions, core customer funding increased by $143 million or 5% and total deposits increased $13 million or 2% above the fourth quarter 2015.  Core customer funding increased $63 million and total deposits grew $13 million compared to the third quarter 2016.  Seacoast realized growth in deposits despite planned decreases in high-cost acquired certificates of deposit and significant branch consolidation.  Total deposits per branch location increased to $75 million as of December 31, 2016, compared to $66 million one year prior.

Aggregate noninterest demand and low cost interest-bearing demand deposits increased $77 million or 4% (not annualized) from the third quarter of 2016 and $433 million or 27% from the fourth quarter of 2015.  Excluding acquired deposits, noninterest demand deposits increased $110 million over the fourth quarter 2015.  No cost demand and interest bearing demand accounts were 57% of deposit balances. 

Other Highlights

Income Taxes
Seacoast recorded a $5.3 million income tax provision in the fourth quarter of 2016, compared to $4.3 million in the third quarter of 2016 and $3.7 million in the prior year.  The fourth and third quarter 2016 tax provisions benefited from the early adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.  As a result, Seacoast recorded a benefit of $383,000 and $418,000 for the fourth and third quarter, respectively, adding approximately $0.01 per diluted share to each quarter.

Excluding the adoption of ASU 2016-09, the total year effective tax rate was 35.6%, down from 37.9% in 2015, reflecting active management of the company's tax position.  Implementation of this new accounting standard will continue to have an impact on the effective tax rate in future periods depending on stock-based compensation grants and their related vesting and exercise timing, as well as stock price. 

Capital Ratios Remain at Strong Levels
The common equity tier 1 capital ratio (CET1) was 10.8%, total capital ratio was 13.3% and the tier 1 leverage ratio was 9.2% at December 31, 2016, essentially flat with the prior quarter as strong earnings grew capital in line with balance sheet growth.

Tangible book value per share increased $0.02 to $9.37 while book value per share remained flat at $11.45 compared to the third quarter of 2016.  Tangible common equity to assets was 7.7% at December 31, 2016.  Tangible book value and tangible common equity ratios were impacted by earnings strength, offset by a decrease in unrealized gains (losses) on AFS securities.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $4.7 billion in assets and $3.5 billion in deposits as of December 31, 2016. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 47 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and five commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida, and west to Okeechobee and surrounding counties. More information about the Company is available at SeacoastBanking.com.

¹ Non-GAAP measure, see "Explanation of Certain Unaudited Non-GAAP Financial Measures"
² https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/regional-reports/fl-economic-outlook-20161101.pdf
³ http://blog.comerica.com/2016/11/15/florida-economy-gains-momentum-heading-into-2017/

Important information About the Proposed Merger and Where to Find It

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.Seacoast has filed a registration statement on Form S-4 with the SEC, which includes a preliminary proxy statement of GulfShore and a preliminary prospectus of Seacoast regarding the proposed merger with GulfShore into Seacoast.  After the registration statement is declared effective by the SEC, GulfShore will deliver a definitive proxy statement to its shareholders.  INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER AND OTHER DOCUMENTS FILED BY SEACOAST WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY DO OR WILL CONTAIN IMPORTANT INFORMATION.

Investors can obtain (when available) a free copy of the proxy statement/prospectus, as well as other filings containing information about Seacoast and GulfShore, at the SEC's website (http://www.sec.gov), with respect to information about Seacoast, and GulfShore's website (www.gulfshorebank.com), with respect to information about GulfShore.  Investors can also obtain these documents, free of charge, at http://www.seacoastbanking.com under the tab "Investor Relations" and then under the tab "Financials/Regulatory Filings."  Copies of the proxy statement/prospectus and any other filing by Seacoast with the SEC can also be obtained, free of charge, by directing a request to Investor Relations, 815 Colorado Avenue, P.O. Box 9012, Stuart, FL 34994, (772) 288-6085.

Seacoast, GulfShore, their respective directors and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed merger. Information about the directors and executive officers of Seacoast is set forth in its proxy statement for its 2016 annual meeting of shareholders, which was filed with the SEC on April 7, 2016, and amendments thereto, and its Current Reports on Form 8-K. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Proxy Statement/Prospectus.  You may obtain free copies of these documents as described in the preceding paragraph.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results,  cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast's objectives, expectations and intentions and other statements that are not historical facts.  Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements. 

You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "support", "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "further", "point to," "project," "could," "intend" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses.  The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2015, under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, return on average equity, revenues, return on average assets, return on average equity, expenses/revenues, net income, noninterest expense as a percent of average assets, and noninterest expense, respectively.

Management uses the non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and in facilitating comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.  The company presents non-GAAP measures to remove or adjust for items like transaction related merger and acquisition costs or other costs or revenue items that are not related to the ongoing operations of the company as well as to adjust intangible assets and intangible asset amortization from acquired companies.  The Company believes these measures are useful to investors because removing the amount of intangible assets and amortization thereof, and removing costs and revenues not related to ongoing operations of the company (the level of which may vary from company to company and from period to period), allows investors to more easily compare the Company's capital position and financial performance to other companies in the industry that present similar measures. The Company also believes that removing these items provides a more relevant measure of the Company's financial performance from period to period. These measures are utilized by management to assess the capital adequacy and profitability of the Company. These disclosures should not be considered an alternative to GAAP. The computations of adjusted net income; adjusted diluted earnings per share; return on average tangible common equity; adjusted revenue; adjusted return on assets; adjusted return on average tangible common equity; adjusted efficiency ratio; adjusted pre-tax, pre-provision income; annualized adjusted operating expenses as a percent of average assets; and adjusted noninterest expense and the reconciliation of these measures are set forth in the tables below: