Harleysville Financial Corporation Announces Regular Cash Dividend and Third Quarter Earnings for Fiscal Year 2018

HARLEYSVILLE, Pa.–()–Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.23 per share on the Company’s common stock. The cash dividend will be payable on August 15, 2018 to stockholders of record on August 1, 2018.

Net income for the third quarter was $1,975,000 or $.51 per diluted share compared to $1,388,000 or $.36 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2018 amounted to $5,007,000 or $1.30 per diluted share compared to $4,146,000 or $1.09 per diluted share for the same nine-month period a year ago.

Brendan J. McGill, President and Chief Executive Officer of the Company, stated, “We continue to experience positive results by adhering to our fundamental operating principals of maintaining prudent underwriting standards, investing in high credit quality assets, and practicing sound capital management.

“In addition we are pleased with how the balance sheet is positioned in the current environment. Our Team has been able to increase our total loans, total deposits, tangible book value, earnings per share, interest rate spread, and return on equity over the prior quarter and prior year amounts.”

The Company’s assets totaled $781.9 million compared to $781.8 million a year ago. Stockholders’ tangible book value increased 3.9% to $18.84 per share from $18.14 a year ago.

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL ( http://www.otcmarkets.com ) and is the holding company for Harleysville Bank. Established in 1915, Harleysville Bank is a Pennsylvania chartered and federally insured bank, headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services.

 

Harleysville Financial Corporation
Selected Consolidated Financial Data as of June 30, 2018

 
(Dollars in thousands except per share data)     Year-To-Date                                                  

(Unaudited)

Nine Months Ended: Three Months Ended:
                   
Selected Consolidated Earnings Data

Jun 30,

2018

Jun 30,

2017

Jun 30,

2018

Mar 31,

2018

Dec 31,

2017

Sept 30,

2017

Jun 30,

2017

Total interest income $ 22,562 $ 21,234 $ 7,716 $ 7,428 $ 7,418 $ 7,326 $ 7,157
Total interest expense   5,138     5,664     1,625     1,685     1,828     1,832     1,807  
 
Net Interest Income 17,424 15,570 6,091 5,743 5,590 5,494 5,350
Provision for loan losses   835     489     360     300     175     175     139  
Net Interest Income after Provision for Loan Losses   16,589     15,081     5,731     5,443     5,415     5,319     5,211  
 
Gain on sale of investments 173
Gain on sale of real estate owned 304 55 304
Bank owned life insurance 294 292 97 98 99 99 97
Other income 1,615 1,488 608 507 500 494 511
Total other expenses   11,544     10,924     3,865     3,959     3,720     3,687     3,870  
 
Income before income taxes 7,258 6,165 2,571 2,089 2,598 2,225 1,949
Income tax expense   2,251     2,019     596     510     1,145     721     561  
 
Net Income $ 5,007   $ 4,146   $ 1,975   $ 1,579   $ 1,453   $ 1,504   $ 1,388  
 
 
Per Common Share Data
Basic earnings $ 1.33 $ 1.11 $ 0.52 $ 0.42 $ 0.39 $ 0.40 $ 0.37
Diluted earnings $ 1.30 $ 1.09 $ 0.51 $ 0.41 $ 0.38 $ 0.39 $ 0.36
Dividends $ 0.68 $ 0.65 $ 0.23 $ 0.23 $ 0.22 $ 0.22 $ 0.22
Tangible book value $ 18.84 $ 18.14 $ 18.84 $ 18.62 $ 18.48 $ 18.33 $ 18.14
Shares outstanding 3,748,600 3,756,177 3,748,600 3,778,235 3,769,277 3,759,637 3,756,177
Average shares outstanding – basic 3,763,539 3,720,697 3,752,604 3,774,263 3,763,863 3,757,691 3,750,666
Average shares outstanding – diluted 3,847,673 3,808,512 3,834,170 3,862,190 3,846,687 3,848,906 3,838,571
 
 
 
Year-To-Date                                              
Nine Months Ended: Three Months Ended:
Other Selected Consolidated Data

Jun 30,

2018

Jun 30,

2017

Jun 30,

2018

Mar 31,

2018

Dec 31,

2017

Sept 30,

2017

Jun 30,

2017

Return on average assets 0.87 % 0.73 % 1.01 % 0.82 % 0.76 % 0.78 % 0.72 %
Return on average equity 9.58 % 8.29 % 11.27 % 9.05 % 8.42 % 8.81 % 8.22 %
Net interest rate spread 2.91 % 2.63 % 3.03 % 2.90 % 2.81 % 2.70 % 2.68 %
Net yield on interest earning assets 3.09 % 2.81 % 3.20 % 3.07 % 2.99 % 2.90 % 2.87 %
Operating expenses to average assets 2.00 % 1.91 % 1.99 % 2.07 % 1.94 % 1.90 % 2.01 %
Efficiency ratio 58.84 % 62.74 % 56.88 % 62.37 % 57.29 % 60.57 % 64.96 %

Ratio of non-performing loans to total assets at end of period

1.40 % 1.57 % 1.40 % 1.54 % 1.35 % 1.53 % 1.57 %
Loan loss reserve to total loans, net 0.73 % 0.73 % 0.73 % 0.71 % 0.67 % 0.69 % 0.73 %
Stockholders’ equity to assets 9.03 % 8.71 % 9.03 % 9.09 % 9.00 % 9.03 % 8.71 %
 
                                             
Selected Consolidated Financial Data

Jun 30,

2018

   

Mar 31,

2018

   

Dec 31,

2017

   

Sept 30,

2017

   

Jun 30,

2017

Total assets $ 781,893 $ 773,975 $ 773,555 $ 762,894 $ 781,807
Cash & investment securities 33,117 39,964 43,856 28,917 54,439
Mortgage-backed securities 94,486 100,408 106,258 112,699 119,461
Total Investments 127,603 140,372 150,114 141,616 173,900
Consumer Loans receivable 416,714 407,881 405,411 407,461 405,196
Commercial Loans receivable 206,064 194,018 186,189 181,045 170,300
Loan loss reserve (4,547 ) (4,262 ) (3,966 ) (4,063 ) (4,193 )
Total Loans receivable net 618,231 597,637 587,634 584,443 571,303
FHLB stock 5,176 5,150 4,954 5,384 5,624
Checking accounts 179,481 178,863 173,623 167,100 171,607
Savings accounts 231,534 229,764 225,830 235,147 239,856
Certificate of deposit accounts 178,782 175,052 164,670 146,508 144,030
Total Deposits 589,797 583,679 564,123 548,755 555,493
Advances 110,231 112,325 131,403 136,958 148,082
Total stockholders’ equity 70,615 70,339 69,644 68,900 68,121
 

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Entegris Declares Quarterly Cash Dividend

BILLERICA, Mass.–()–Entegris, Inc. (NasdaqGS: ENTG), a leader in specialty chemicals, filtration and advanced materials solutions for the microelectronics industry, today announced that its Board of Directors has authorized a quarterly cash dividend of $0.07 per share to be paid on August 22, 2018 to shareholders of record on the close of business on August 1, 2018.

ABOUT ENTEGRIS
Entegris is a leading specialty materials provider for the microelectronics industry and other high-tech industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan. Additional information can be found at www.entegris.com.

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BlackRock Declares Quarterly Dividend of $3.13 on Common Stock

NEW YORK–()–BlackRock, Inc. (NYSE:BLK) today announced that its Board of Directors has declared a quarterly cash dividend of $3.13 per share of common stock, payable September 24, 2018 to shareholders of record at the close of business on September 7, 2018.

About BlackRock

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of June 30, 2018, the firm managed approximately $6.3 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.

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KKR Income Opportunities Fund Declares Monthly Distributions of $0.125 Per Share

NEW YORK–()–KKR Income Opportunities Fund (the “Fund”) (NYSE: KIO) today announced its monthly distributions of $0.125 per common share, payable on the dates below. Based on the Fund’s initial public offering price of $20.00 per share and current share price of $16.39 (as of its close on July 16, 2018), the distributions represent an annualized distribution rate of 7.5% and 9.2% respectively (calculated by annualizing the distribution amount and dividing it by the IPO share price or current price, as the case may be).

The monthly distribution schedule is as follows for the months of August, September and October:

Ex-Date:     August 9, 2018
Record Date: August 10, 2018
Payable Date: August 31, 2018
Amount: $0.125 per share
 
Ex-Date: September 13, 2018
Record Date: September 14, 2018
Payable Date: September 28, 2018
Amount: $0.125 per share
 
Ex-Date: October 11, 2018
Record Date: October 12, 2018
Payable Date: October 31, 2018
Amount: $0.125 per share
 

Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund.

In compliance with Section 19 of the Investment Company Act of 1940, a notice will be provided to shareholders for any distribution that does not consist solely of net investment income. A portion of each distribution may be treated as paid from sources other than net investment income, including but not limited to short-term capital gain, long-term capital gain or return of capital.

The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The final determination of the source of all distributions in 2017 will be made after year-end. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

The Fund is a diversified, closed-end fund. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing.

The investment return, price, yields, market value and net asset value (“NAV”) of a fund’s shares will fluctuate with market conditions. Closed-end funds frequently trade at a discount to their NAV, which may increase an investor’s risk of loss. There is no assurance that the Fund will meet its investment objective. The Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in a Fund distribution rate at a future time.

An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle. Investors should carefully review and consider the Fund’s investment objective, risk, charges and expenses before investing.

Investment return and principal value will fluctuate, and it is possible to lose money by investing in the Fund. Past performance is not a guarantee of future results. Please see the Fund’s prospectus for more risk information.

Forward Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meaning of the federal securities laws. All statements, other than statements of historical fact, included herein are “forward-looking statements.” The forward-looking statements are based on the Fund’s and KKR’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Fund or KKR or are within their control. The Fund and KKR do not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law.

This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other important information about the Fund, should be read carefully before investing. A copy of the prospectus can be obtained on the Fund website. An investment in the Fund should not constitute a complete investment program.

KKR Income Opportunities Fund

KKR Income Opportunities Fund is a diversified, closed-end management investment company managed by KKR Credit Advisors (US) LLC (“KKR Credit”), a subsidiary of KKR. The Fund’s primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. The Fund will seek to achieve its investment objective by investing primarily in first- and second-lien secured loans, unsecured loans and high yield corporate debt instruments. It expects to employ a dynamic strategy of investing in a targeted portfolio of loans and fixed-income instruments of U.S. and non-U.S. issuers and implementing hedging strategies in order to achieve attractive risk-adjusted returns.

About KKR Credit

Launched by KKR & Co. Inc. (“KKR”) in 2004, KKR Credit invests on behalf of its managed funds, clients and accounts across the corporate credit spectrum, including secured credit, bank loans and high yield securities and alternative assets such as mezzanine financing, special situations investing and structured finance. With approximately 240 employees, including over 100 investment professionals, KKR Credit’s investment teams are closely aligned with KKR’s wealth of private equity investment and industry resources.

About KKR

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds.

Contact the Fund at (855) 330-3927 or visit the Fund’s website at www.kkrfunds.com/kio for additional information.

The Fund will invest in loans and other types of fixed‐income instruments and securities. Such investments may be secured, partially secured or unsecured and may be unrated, and whether or not rated, may have speculative characteristics. The market price of the Fund’s investments will change in response to changes in interest rates and other factors. Generally, when interest rates rise, the values of fixed‐income instruments fall, and vice versa.

Use of leverage creates an opportunity for increased income and return for Common Shareholders but, at the same time, creates risks, including the likelihood of greater volatility in the NAV and market price of, and distributions on, the Common Shares. In particular, leverage may magnify interest rate risk, which is the risk that the prices of portfolio securities will fall (or rise) if market interest rates for those types of securities rise (or fall). As a result, leverage may cause greater changes in the Fund’s NAV, which will be borne entirely by the Fund’s Common Shareholders.

Derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying assets of the Fund. The risk of loss from a short sale is unlimited because the Fund must purchase the shorted security at a higher price to complete the transaction and there is no upper limit for the security price. The use of options, swaps, and derivatives by the Fund has the potential to significantly increase the Fund’s volatility. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. The Fund’s investments in securities or other instruments of non‐U.S. issuers or borrowers may be traded in undeveloped, inefficient and less liquid markets and may experience greater price volatility and changes in value.

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Interactive Brokers Group Announces 2Q2018 Results

GREENWICH, Conn.–()–Interactive Brokers Group, Inc. (NASDAQ GS: IBKR), an automated global electronic broker and market maker, today reported diluted earnings per share on net income of $0.58 for the quarter ended June 30, 2018, compared to $0.32 for the same period in 2017, and diluted earnings per share on comprehensive income of $0.39 for the quarter, compared to $0.41 for the same period in 2017.

Net revenues were $445 million and income before income taxes was $271 million this quarter, compared to net revenues of $387 million and income before income taxes of $204 million for the same period in 2017. The results for the quarter were positively impacted by strong growth in net interest income, which increased $70 million, or 45%, and higher commissions, which increased $25 million, or 16% from the year-ago quarter.

In addition, the results for the quarter include a $21 million loss on our currency diversification strategy, compared to a $29 million gain in the same period in 2017; and a $3 million net mark-to-market gain on our U.S. government securities portfolio, compared to a $3 million net mark-to-market loss in the same period in 2017.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on September 14, 2018 to shareholders of record as of August 31, 2018.

Business Highlights

  • 61% pretax profit margin for this quarter, up from 53% in the year-ago quarter.
  • 64% Electronic Brokerage pretax profit margin for this quarter, up from 59% in the year-ago quarter.
  • Customer equity grew 29% from the year-ago quarter to $134.7 billion and customer debits increased 27% to $28.8 billion.
  • Customer accounts increased 27% from the year-ago quarter to 542 thousand.
  • Total DARTs1 increased 19% from the year-ago quarter to 797 thousand.
  • Brokerage segment equity was $5.2 billion. Total equity was $6.7 billion.

__________

1 Daily average revenue trades (DARTs) are based on customer orders.
 

Segment Overview

Electronic Brokerage

Electronic brokerage segment income before income taxes increased 43%, to $283 million in the quarter ended June 30, 2018, compared to the same period last year. Net revenues increased 33% to $443 million on higher net interest income, commissions revenue and other income.

Net interest income increased 47% as average customer credit and margin loan balances and benchmark interest rates increased from the year-ago quarter. Commissions revenue increased 16% from the year-ago quarter on higher customer volumes in futures and options, which increased 21% and 13%, respectively, while stock volumes decreased 5% from the year-ago quarter. Other income increased 58% on higher net mark-to-market gains on our U.S. government securities portfolio and other investments. Pretax profit margin was 64% for the quarter ended June 30, 2018, up from 59% in the same period last year.

Customer accounts grew 27% to 542 thousand and customer equity increased 29% from the year-ago quarter to $134.7 billion. Total DARTs for cleared and execution-only customers increased 19% to 797 thousand from the year-ago quarter. Cleared DARTs were 739 thousand, 19% higher than in the same period last year.

Market Making

Market making segment income before income taxes increased to $9 million in the quarter ended June 30, 2018, as compared to a pretax loss of $24 million in the year-ago quarter, during which we continued to wind down operations in this segment. The quarter’s results reflect lower operating costs on the remaining operations and the non-recurrence of $22 million in one-time exit costs related to the wind-down of our options market making business recognized in the year-ago quarter. In the third quarter of 2017 we completed the transfer of our U.S. options market making business to Two Sigma Securities, LLC and by year-end we had exited the majority of our market making activities outside the U.S.

Effects of Foreign Currency Diversification

In connection with our currency diversification strategy, we have determined to base our net worth in GLOBALs, a basket of 14 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $100 million, as the U.S. dollar value of the GLOBAL decreased by approximately 1.41%. The effects of the currency diversification strategy are reported as components of (1) Other Income in the corporate segment and (2) Other Comprehensive Income (“OCI”).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, July 17, 2018, at 4:30 p.m. ET to discuss its quarterly results. Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call. Ask for the “Interactive Brokers Conference Call.”

The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 120 markets in numerous countries and currencies, from a single IB Universal Account to customers worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our customers with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost according to Barron’s Best Online Brokers review, March 26, 2018. We strive to provide our customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

 
TRADE VOLUMES:
(in 000’S, except %)
            Brokerage        
Market Brokerage Non Avg. Trades
Making % Cleared % Cleared % Total % per U.S.

Period

Trades

Change

Trades

Change

Trades

Change

Trades

Change

Trading Day

2015 65,937 242,846 18,769 327,553 1,305
2016 64,038 (3%) 259,932 7% 16,515 (12%) 340,485 4% 1,354
2017 31,282 (51%) 265,501 2% 14,835 (10%) 311,618 (8%) 1,246
 
2Q2017 7,960 64,823 3,672 76,455 1,214
2Q2018 4,575 (43%) 78,026 20% 4,641 26% 87,242 14% 1,363
 
1Q2018 4,469 89,621 4,695 98,785 1,619
2Q2018 4,575 2% 78,026 (13%) 4,641 (1%) 87,242 (12%) 1,363
 
CONTRACT AND SHARE VOLUMES:
(in 000’s, except %)
         
TOTAL
Options % Futures1 % Stocks %

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2015 634,388 140,668 172,742,520
2016 572,834 (10%) 143,287 2% 155,439,227 (10%)
2017 395,885 (31%) 124,123 (13%) 220,247,921 42%
 
2Q2017 91,879 30,805 53,378,165
2Q2018 93,253 1% 36,693 19% 51,370,386 (4%)

 

1Q2018 115,438 43,449 68,380,398
2Q2018 93,253 (19%) 36,693 (16%) 51,370,386 (25%)
 
MARKET MAKING
Options % Futures1 % Stocks %

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2015 335,406 14,975 15,376,076
2016 307,377 (8%) 14,205 (5%) 13,082,887 (15%)
2017 102,025 (67%) 5,696 (60%) 7,139,622 (45%)
 
2Q2017 19,831 1,143 1,620,275
2Q2018 11,813 (40%) 756 (34%) 2,442,203 51%
 
1Q2018 13,256 935 2,817,831
2Q2018 11,813 (11%) 756 (19%) 2,442,203 (13%)
 
BROKERAGE TOTAL
Options % Futures1 % Stocks %

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2015 298,982 125,693 157,366,444
2016 265,457 (11%) 129,082 3% 142,356,340 (10%)
2017 293,860 11% 118,427 (8%) 213,108,299 50%
 
2Q2017 72,048 29,662 51,757,890
2Q2018 81,440 13% 35,937 21% 48,928,183 (5%)
 
1Q2018 102,182 42,514 65,562,567
2Q2018 81,440 (20%) 35,937 (15%) 48,928,183 (25%)

__________

1 Includes options on futures.

     

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

 

BROKERAGE CLEARED  
Options   % Futures1 % Stocks %

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2015 244,356 124,206 153,443,988
2016 227,413 (7%) 128,021 3% 138,523,932 (10%)
2017 253,304 11% 116,858 (9%) 209,435,662 51%
 
2Q2017 62,342 29,255 50,807,138
2Q2018 71,873 15% 35,679 22% 47,840,126 (6%)
 
1Q2018 87,705 41,742 64,494,943
2Q2018 71,873 (18%) 35,679 (15%) 47,840,126 (26%)

__________

1 Includes options on futures.

BROKERAGE STATISTICS      
(in 000’s, except % and where noted)
 
Year over Year

2Q2018

2Q2017

% Change

Total Accounts 542 428 27%
Customer Equity (in billions)1 $ 134.7 $ 104.8 29%
 
Cleared DARTs 739 621 19%
Total Customer DARTs 797 669 19%
 
Cleared Customers (in $’s, except DART per account)
Commission per DART $ 3.86 $ 4.00 (4%)
DART per Avg. Account (Annualized) 350 372 (6%)
Net Revenue per Avg. Account (Annualized) $ 3,190 $ 3,141 2%
 
Consecutive Quarters

2Q2018

1Q2018

% Change

Total Accounts 542 517 5%
Customer Equity (in billions)1 $ 134.7 $ 129.2 4%
 
Cleared DARTs 739 876 (16%)
Total Customer DARTs 797 939 (15%)
 
Cleared Customers (in $’s, except DART per account)
Commission per DART $ 3.86 $ 4.04 (4%)
DART per Avg. Account (Annualized) 350 439 (20%)
Net Revenue per Avg. Account (Annualized) $ 3,190 $ 3,768 (15%)

__________

1 Excluded non-customers.

 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

(UNAUDITED)

           
Three Months Six Months
Ended June 30, Ended June 30,
2018     2017 2018     2017
 
(in millions)
Average interest-earning assets
Segregated cash and securities $ 19,512 $ 24,063 $ 20,248 $ 24,298
Customer margin loans 29,839 22,134 29,658 20,924
Securities borrowed 3,327 4,062 3,202 4,031
Other interest-earning assets 4,020 2,681 4,079 2,512
FDIC sweeps1   1,186     61     973     47  
$ 57,884   $ 53,001   $ 58,160   $ 51,812  
 
Average interest-bearing liabilities
Customer credit balances $ 47,390 $ 44,791 $ 47,657 $ 43,903
Securities loaned  

4,013

    3,653     4,178     3,632  
$ 51,403   $ 48,444   $ 51,835   $ 47,535  
 
Net interest income
Segregated cash and securities, net2 $ 75 $ 47 $ 149 $ 86
Customer margin loans3 164 89 303 164
Securities borrowed and loaned, net 36 37 83 70
Customer credit balances, net2/3 (63 ) (23 ) (112 ) (32 )
Other net interest income1/4   20     5     31     9  
Net interest income $ 232  

 

$ 155   $ 454   $ 297  
 
Net interest margin (“NIM”)   1.61 %   1.17 %   1.57 %   1.16 %
 
Annualized yields
Segregated cash and securities 1.54 % 0.78 % 1.48 % 0.71 %
Customer margin loans 2.20 % 1.61 % 2.06 % 1.58 %
Customer credit balances 0.53 % 0.21 % 0.47 % 0.15 %
   
    1   Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company’s consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
 
2 We have recategorized components of net interest income related to currencies with negative interest rates and as such, prior period amounts have been adjusted to conform to the current period presentation. For the quarter and six months ended June 30, 2017, $4 million and $8 million has been recategorized from net interest income on “segregated cash and securities, net” to “customer credit balances, net”, respectively.
 
3 Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
 
4 Includes income from financial instruments which has the same characteristics as interest, but is reported in other income.
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

(UNAUDITED)

           
Three Months Six Months
Ended June 30, Ended June 30,
2018     2017 2018     2017
(in millions)
 
Electronic Brokerage Net revenues $ 443 $ 334 $ 908 $ 648
Non-interest expenses   160     136     334     265  
 
Income before income taxes $ 283   $ 198   $ 574   $ 383  
 
Pre-tax profit margin 64 % 59 % 63 % 59 %
 
Market Making Net revenues $ 22 $ 23 $ 43 $ 31
Non-interest expenses   13     47     25     77  
 
Income (loss) before income taxes $ 9   $ (24 ) $ 18   $ (46 )
 
Pre-tax profit (loss) margin 41 % (104 %) 42 % (148 %)
 
Corporate 1 Net revenues $ (20 ) $ 30 $ 21 $ 82
Non-interest expenses   1         2     2  
 
Income (loss) before income taxes $ (21 ) $ 30   $ 19   $ 80  
 
 
Total Net revenues $ 445 $ 387 $ 972 $ 761
Non-interest expenses   174     183     361     344  
 
Income before income taxes $ 271   $ 204   $ 611   $ 417  
 
Pre-tax profit margin 61 % 53 % 63 % 55 %
       
1   Corporate includes corporate related activities as well as inter-segment eliminations and gains and losses on positions held as part of our overall currency diversification strategy.
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

     
Three Months Six Months
Ended June 30, Ended June 30,
2018   2017 2018   2017
(in millions, except share and per share data)
 
Revenues:
Commissions $ 185 $ 160 $ 405 $ 314
Interest income 333 206 644 383
Trading gains 12 13 25 15
Other income   23     59   100     135
 
Total revenues 553 438 1,174 847
 
Interest expense   108     51   202     86
 
Total net revenues   445     387   972     761
 
Non-interest expenses:
Execution and clearing 66 63 139 124
Employee compensation and benefits 68 66 138 128
Occupancy, depreciation and amortization 11 10 23 23
Communications 7 7 13 15
General and administrative 22 36 45 52
Customer bad debt       1   3     2
 
Total non-interest expenses   174     183   361     344
 
Income before income taxes 271 204 611 417
 
Income tax expense   12     17   33     35
 
Net income 259 187 578 382
 
Net income attributable to noncontrolling interests   217     164   490     335
 
Net income available for common stockholders $ 42   $ 23 $ 88   $ 47
 
Earnings per share:
Basic $ 0.58   $ 0.33 $ 1.22   $ 0.68
Diluted $ 0.58   $ 0.32 $ 1.21   $ 0.67
 
Weighted average common shares outstanding:
Basic 72,476,729 69,087,853 71,979,104 68,539,526
Diluted 73,329,496 70,063,427 72,923,743 69,613,567
 
Comprehensive income:
Net income available for common stockholders $ 42 $ 23 $ 88 $ 47
Other comprehensive income:
Cumulative translation adjustment, before income taxes (14 ) 6 (13 ) 10
Income taxes related to items of other comprehensive income          
Other comprehensive income (loss), net of tax   (14 )   6   (13 )   10
Comprehensive income available for common stockholders $ 28   $ 29 $ 75   $ 57
 
Comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests $ 217 $ 164 $ 490 $ 335
Other comprehensive income – cumulative translation adjustment (65 )   31   (58 )   50
Comprehensive income attributable to noncontrolling interests $ 152   $ 195 $ 432   $ 385
 
 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

EARNINGS PER SHARE ON COMPREHENSIVE INCOME

(UNAUDITED)

         
Three Months Six Months
Ended June 30, Ended June 30,
2018   2017 2018   2017
(in millions, except share and per share data)
 
Comprehensive income available for common stockholders, net of tax $ 28 $ 29 $ 75 $ 57
 
Comprehensive earnings per share:
Basic $ 0.39 $ 0.42 $ 1.05 $ 0.83
Diluted $ 0.39 $ 0.41 $ 1.03 $ 0.81
 
 
Weighted average common shares outstanding:
Basic 72,476,729 69,087,853 71,979,104 68,539,526
Diluted 73,329,496 70,063,427 72,923,743 69,613,567
 
         

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 
June 30,

2018

December 31,

2017

(in millions)
 
Assets
Cash and cash equivalents $ 2,500 $ 1,732
Cash – segregated for regulatory purposes 7,686 6,547
Securities – segregated for regulatory purposes 13,368 13,685
Securities borrowed 3,588 2,957
Securities purchased under agreements to resell 533 2,035
Financial instruments owned, at fair value 2,088 3,154
Receivables from customers, net of allowance for doubtful accounts 28,970 29,821
Receivables from brokers, dealers and clearing organizations 1,134 823
Other assets   436   408
 
Total assets $ 60,303 $ 61,162
 
Liabilities and equity
 
Liabilities
Short-term borrowings $ 193 $ 15
Securities loaned 4,091 4,444
Securities sold under agreements to repurchase 1,316
Financial instruments sold but not yet purchased, at fair value 630 767
Other payables:
Customers 48,239 47,548
Brokers, dealers and clearing organizations 100 283
Other payables   350   356
  48,689   48,187
 
Total liabilities   53,603   54,729
 
Equity
Stockholders’ equity 1,183 1,090
Noncontrolling interests   5,517   5,343
Total equity   6,700   6,433
 
Total liabilities and equity $ 60,303 $ 61,162
 
 
June 30, 2018 December 31, 2017
Ownership of IBG LLC Membership Interests

Interests

               %

Interests

%

 
IBG, Inc. 73,544,946 17.8% 71,479,604 17.4%
Noncontrolling interests (IBG Holdings LLC) 340,229,444 82.2% 340,229,444 82.6%
 
Total IBG LLC membership interests 413,774,390 100.0% 411,709,048 100.0%

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EPR Properties Declares Monthly Dividend for Common Shareholders

KANSAS CITY, Mo.–()–EPR Properties (NYSE:EPR) today announced that its Board of Trustees has declared its monthly cash dividend to common shareholders. The dividend of $0.36 per common share is payable August 15, 2018 to shareholders of record on July 31, 2018. This dividend represents an annualized dividend of $4.32 per common share, an increase of approximately 6% over prior year and the Company’s eighth consecutive year with a significant annual dividend increase.

About EPR Properties

EPR Properties is a specialty real estate investment trust (REIT) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. Our total investments exceed $6.8 billion and our primary investment segments are Entertainment, Recreation and Education. We adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields. Further information is available at www.eprkc.com.

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Bar Harbor Bankshares Declares Quarterly Cash Dividend

BAR HARBOR, Maine–()–Bar Harbor Bankshares (NYSE American: BHB), announced that its Board of Directors declared at its July 17, 2018 meeting, a quarterly cash dividend of $.20 per share of common stock. The quarterly cash dividend is unchanged from last quarter and is payable to all shareholders of record as of the close of business August 14, 2018 and will be paid on September 14, 2018.

Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 130 years. Bar Harbor provides full service community banking with office locations in all three Northern New England states of Maine, New Hampshire, and Vermont. For more information, visit www.bhbt.

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Visa Inc. Declares Quarterly Dividend

SAN FRANCISCO–()–Visa Inc. (NYSE: V) today announced that on July 16, 2018, its board of directors declared a quarterly cash dividend of $0.21 per share of class A common stock (determined in the case of class B and C common stock and series B and C convertible participating preferred stock on an as-converted basis), payable on September 4, 2018, to all holders of record as of August 17, 2018.

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visavisacorporate.tumblr.com and @VisaNews.

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Northern Trust Announces Increased Quarterly Dividend and Stock Repurchase Authorization

CHICAGO–()–Northern Trust Corporation (Nasdaq: NTRS), holding company of The Northern Trust Company, has declared a quarterly cash dividend of $0.55 per share on its common stock ($1.66-2/3 par value), payable on October 1, 2018, to holders of record at 5:00 p.m., Chicago time, on September 14, 2018. The dividend represents a more than 30 percent increase from the prior quarterly rate of $0.42 per share, and results in an annualized dividend rate of $2.20, compared with the prior annualized rate of $1.68. Northern Trust Corporation also declared cash dividends of $365.625 per share of its Series C non-cumulative perpetual preferred stock (resulting in a distribution of $0.365625 per depositary share), and $2,300.00 per share of its Series D cumulative perpetual preferred stock (resulting in a distribution of $23.00 per depositary share), each payable on October 1, 2018, to holders of record at 5:00 p.m. Chicago time on September 15, 2018.

Northern Trust announced that its Board of Directors has approved a new common stock repurchase authorization of up to 25 million shares. The new repurchase authorization replaces the authorization approved in July 2017. The timing and amount of shares repurchased under the new repurchase authorization will depend on various factors, including, but not limited to, Northern Trust’s business plans, financial performance, other investment opportunities and general market conditions, including share price.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2018, Northern Trust had assets under custody/administration of US$10.8 trillion, and assets under management of US$1.2 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/disclosures.

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TransMontaigne Partners L.P. Announces $0.01 Increase in Quarterly Distribution

DENVER–()–TransMontaigne Partners L.P. (NYSE:TLP) announced today that it declared a distribution of $0.795 per unit for the period from April 1, 2018 through June 30, 2018, representing a $0.01 increase over the previous quarter. The distribution is payable on August 8, 2018 to unitholders of record on July 31, 2018.

The second quarter distribution marks the eleventh consecutive quarter of distribution growth for TransMontaigne Partners L.P., and reflects a 1.3% increase over the previous quarter as well as a 7.4% increase over the distribution paid a year ago.

About TransMontaigne Partners L.P.

TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio Rivers, the Southeast and in Northern California. We provide integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Light refined products include gasolines, diesel fuels, heating oil and jet fuels; heavy refined products include residual fuel oils and asphalt. We do not purchase or market products that we handle or transport. News and additional information about TransMontaigne Partners L.P. is available on our website: www.transmontaignepartners.com.

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Baxter Declares Quarterly Dividend

DEERFIELD, Ill.–()–Baxter International Inc. (NYSE:BAX), a leading global medical products company, today announced that its Board of Directors has declared a quarterly cash dividend of $0.19 per share of common stock. The dividend is payable on October 1, 2018, to stockholders of record as of August 31, 2018. The indicated annual dividend rate is $0.76 per share of common stock.

About Baxter

Every day, millions of patients and caregivers rely on Baxter’s leading portfolio of critical care, nutrition, renal, hospital and surgical products. For more than 85 years, we’ve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers that make it happen. With products, technologies and therapies available in more than 100 countries, Baxter’s employees worldwide are now building upon the company’s rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit www.baxter.com and follow us on TwitterLinkedIn and Facebook.

This release includes forward-looking statements concerning Baxter’s dividends and rates thereof. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company’s financial position, including cash flows; alternative uses of funds including, but not limited to dividends, share repurchases, research and development, business development transactions and other investments in the company’s businesses; and other risks identified in the company’s most recent filing on Form 10-K and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements.

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GGP Inc. Sets Record Date for Pre-Closing Dividend in Connection with Transaction with Brookfield Property Partners L.P.

CHICAGO–()–As previously announced, on March 26, 2018, GGP Inc. (“GGP”) (NYSE: GGP) and Brookfield Property Partners L.P. (“BPY”) entered into a definitive agreement pursuant to which BPY will acquire all of the shares of GGP common stock, par value $0.01 per share, that BPY and its affiliates do not already own, through a series of transactions (collectively, the “Transactions”), including the declaration of a special dividend. As more fully described in the Merger Agreement (as defined below), the special dividend is payable to the holders of record of shares of GGP common stock (not including restricted shares of GGP common stock) as of the end of trading on the New York Stock Exchange (the “NYSE”) on the first business day following receipt of the requisite stockholder approval of the Transactions and following the exchange of all shares of GGP common stock held by certain affiliates of BPY for series B preferred stock to be authorized and issued by GGP pursuant to the terms of the Merger Agreement (the “Pre-Closing Dividend”). GGP today announced that its board of directors (the “Board”), upon the recommendation of the special committee of the Board, comprised entirely of non-management independent directors who are not affiliated with BPY (the “Special Committee”), fixed the end of trading on the NYSE on July 27, 2018 as the record date for, and declared, the Pre-Closing Dividend. The payment of the Pre-Closing Dividend is conditioned upon, among other things, the Transactions having been approved by the holders of GGP common stock at the Special Meeting (as defined below) and the satisfaction of other customary closing conditions.

In aggregate, the Pre-Closing Dividend consists of the Aggregate Cash Dividend Amount (as such term is defined in the Merger Agreement) and a number of shares of class A stock, par value $0.01 per share, to be authorized and issued by Brookfield Property REIT Inc. (“BPR”) (the surviving corporation following the consummation of the Transactions) upon the amendment and restatement of GGP’s certificate of incorporation on the Charter Closing Date (as such term is defined in the Merger Agreement) equal to the Aggregate Stock Dividend Amount (as such term is defined in the Merger Agreement), as appropriately adjusted pursuant to the terms of the Merger Agreement (to the extent applicable), with a payment date of the Charter Closing Date.

As more fully described in the Merger Agreement, holders of GGP common stock who are entitled to receive the Pre-Closing Dividend will have the right to elect to receive either cash and/or class A stock of BPR or limited partnership units of BPY, subject to proration. The election forms setting forth detailed instructions on how to make an election to receive cash and/or class A stock of BPR or BPY units will be mailed to such holders on or after the record date for the Pre-Closing Dividend. Any shares of GGP common stock that are entitled to make an election for which an effective, properly completed election form has not been received by the deadline specified in the election forms will be deemed to have made a cash election and will be deemed to have made an election to receive BPY units to the extent any equity is received or entitled to be received due to proration. Thus, any holder of GGP common stock that wishes to receive a portion of their consideration in class A stock of BPR must submit a properly completed election form prior to the deadline.

It is anticipated that from trading on July 26, 2018, the business day immediately prior to the record date for the Pre-Closing Dividend, through (and including) the payment date for the Pre-Closing Dividend, GGP common stock will trade with “due bills” attached, pursuant to which, during such period, the transferor of any GGP common stock will relinquish its entitlement to the Pre-Closing Dividend to the transferee and the transferee of any GGP common stock will be deemed to have made an election to receive the default cash in the Pre-Closing Dividend and to receive BPY units to the extent any equity is received or entitled to be received due to proration. It is currently expected that the NYSE will not issue an ex-dividend date with respect to the Pre-Closing Dividend. More detailed information about the Pre-Closing Dividend will be included in the election forms and materials which will be mailed to holders of GGP common stock who are entitled to receive the Pre-Closing Dividend on or after the record date for the Pre-Closing Dividend.

In connection with the Transactions, GGP has filed a definitive proxy statement with the U.S. Securities and Exchange Commission (the “SEC”) on June 27, 2018, which contains a notice of a special meeting of holders of GGP common stock to be held on July 26, 2018 for the purpose of obtaining the requisite stockholder approval of the Transactions (the “Special Meeting”).

GGP expects that the Transactions will be completed in the third quarter of 2018, subject to, among other things, receipt of the requisite stockholder approval of the Transactions and the satisfaction of other customary closing conditions.

About GGP Inc.

GGP Inc. is an S&P 500 company focused exclusively on owning, managing, leasing and redeveloping high-quality retail properties throughout the United States. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.

About Brookfield Property Partners L.P.

Brookfield Property Partners is one of the world’s largest commercial real estate companies, with approximately $69 billion in total assets. We are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, industrial, hospitality, self-storage, student housing and manufactured housing assets. Brookfield Property Partners is listed on the NASDAQ and Toronto stock exchanges. Further information is available at bpy.brookfield.com.

Brookfield Property Partners is the flagship listed real estate company of Brookfield Asset Management, a leading global alternative asset manager with over $285 billion in assets under management.

Additional Information and Where to Find It

This communication is being made in respect of the proposed transaction contemplated by the Agreement and Plan of Merger, dated as of March 26, 2018 and as amended on June 25, 2018, among BPY, Goldfinch Merger Sub Corp. and GGP (as may be further amended or otherwise modified from time to time in accordance with its terms, the “Merger Agreement”). This communication may be deemed to be solicitation material in respect of the proposed transaction involving BPY and GGP. In connection with the proposed transaction, BPY filed with the SEC a registration statement on Form F-4 (File No.: 333-224594) that includes a prospectus of BPY (the “BPY prospectus”), and GGP filed with the SEC a registration statement on Form S-4 (File No.: 333-224593) that includes a proxy statement/prospectus of GGP (the “GGP proxy statement/prospectus”). The parties also filed a Rule 13E-3 transaction statement on Schedule 13E-3. The registration statements filed by BPY and GGP were declared effective by the SEC on June 26, 2018 and GGP has mailed the GGP proxy statement/prospectus in definitive form to its stockholders of record as of the close of business on June 22, 2018. Each of BPY and GGP may also file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for the BPY prospectus, the GGP proxy statement/prospectus, the registration statements or any other document which BPY or GGP may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE ABOVE-REFERENCED AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT BPY, GGP, THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and stockholders may obtain free copies of the above-referenced and other documents filed with the SEC by BPY and GGP, when available, through the SEC’s website at http://www.sec.gov. In addition, investors may obtain free copies of the above-referenced and other documents filed with the SEC by BPY, when available, by contacting BPY Investor Relations at bpy.enquiries@brookfield.com or +1 (855) 212-8243 or at BPY’s website at http://bpy.brookfield.com, and may obtain free copies of the above-referenced and other documents filed with the SEC by GGP, when available, by contacting GGP Investor Relations at (312) 960-5000 or at GGP’s website at http://www.ggp.com.

Non-solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, 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. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Participants in Solicitation

BPY, GGP and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from GGP stockholders in respect of the proposed transaction that is described in the BPY prospectus and the GGP proxy statement/prospectus. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies from GGP stockholders in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in the BPY prospectus and the GGP proxy statement/prospectus. You may also obtain the documents that BPY and GGP file electronically free of charge from the SEC’s website at http://www.sec.gov. Information regarding BPY’s directors and executive officers is contained in BPY’s 2017 Annual Report on Form 20-F filed with the SEC on March 9, 2018. Information regarding GGP’s directors and executive officers is contained in GGP’s 2017 Annual Report on Form 10-K filed with the SEC on February 22, 2018 and its 2018 Annual Proxy Statement on Schedule 14A filed with the SEC on April 27, 2018.

Forward-Looking Statements

This communication contains “forward-looking information” within the meaning of Canadian provincial securities laws and applicable regulations and “forward-looking statements” within the meaning of “safe harbor” provisions of applicable U.S. securities laws, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature or depend upon or refer to future events or conditions, include statements regarding the expected timing, completion and effects of the proposed transaction, our operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts,” “likely,” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the occurrence of any event, change or other circumstance that could affect the proposed transaction on the anticipated terms and timing, including the risk that the proposed transaction may not be consummated; risks related to BPY’s ability to integrate GGP’s business into its own and the ability of the combined company to attain expected benefits therefrom; risks incidental to the ownership and operation of real estate properties including local real estate conditions; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the ability to enter into new leases or renew leases on favorable terms; business competition; dependence on tenants’ financial condition; the use of debt to finance our business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; uncertainties of real estate development or redevelopment; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; risks relating to our insurance coverage; the possible impact of international conflicts and other developments including terrorist acts; potential environmental liabilities; changes in tax laws and other tax related risks; dependence on management personnel; illiquidity of investments; the ability to complete and effectively integrate other acquisitions into existing operations and the ability to attain expected benefits therefrom; operational and reputational risks; catastrophic events, such as earthquakes and hurricanes; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements or information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

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Genesis Energy, L.P. Declares Quarterly Distribution

HOUSTON–()–Genesis Energy, L.P. (NYSE: GEL) announced today that, on July 16, 2018, the Board of Directors of its general partner declared a distribution on Genesis’ common units and 8.75% Class A Convertible Preferred Units attributable to the quarter ended June 30, 2018. These distributions will be paid on August 14, 2018 to holders of record at the close of business on July 31, 2018.

Each holder of common units will be paid a quarterly cash distribution of $0.53 ($2.12 on an annualized basis) for each common unit held of record. With respect to the preferred units, Genesis declared a payment-in-kind of the quarterly distribution resulting in the issuance of an additional approximately 511,934 preferred units (“PIK units”). Each holder of a preferred unit will be paid through the issuance of 0.021875 PIK units (plus cash for any fractional unit based on $33.71 per unit) for each preferred unit held of record. This distribution equates to a quarterly distribution of $0.7374 per preferred unit ($2.9496 on an annualized basis). The PIK units will be issued in book-entry form on the payment date.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, marine transportation and onshore facilities and transportation (formerly known as supply and logistics). Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.

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Pacific City Financial Corporation Declares $0.03 Cash Dividend

LOS ANGELES–()–Pacific City Financial Corporation (OTC Pink: PFCF), the holding company of Pacific City Bank, today announced that its Board of Directors of the Company declared a cash dividend on its common share of $0.03 per share. The dividend will be paid on or about September 14, 2018, to shareholders of record as of the close of business on August 31, 2018.

About Pacific City Financial Corporation

Headquartered in Los Angeles, California, Pacific City Financial Corporation is the parent company of Pacific City Bank, a full-service commercial bank with thirteen branch offices and ten loan production offices in Lynwood and Bellevue, Washington; Denver, Colorado; Chicago, Illinois; Annandale, Virginia; Atlanta, Georgia; Orange County and Los Angeles, California; Bayside, New York; and Carrollton, Texas. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and lines of credit, trade finance loans, auto loans, residential mortgage loans, and SBA loans. Pacific City Bank serves a diverse customer base through its branches in the Greater Los Angeles area, Fort Lee, New Jersey, Bayside, New York and its Loan Production Offices in eight States.

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Voya Infrastructure, Industrials and Materials Fund Announces Payment of Quarterly Distribution

SCOTTSDALE, Ariz.–()–Voya Infrastructure, Industrials and Materials Fund (NYSE:IDE) today announced important information concerning its distribution declared in June 2018. This press release is issued as required by the Fund’s Managed Distribution Plan (the “Plan”) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make quarterly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the July distribution. It is not determinative of the tax character of the Fund’s distributions for the 2018 calendar year. Shareholders should note that the Fund’s total regular distribution amount is subject to change as a result of market conditions or other factors.

The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Distribution Period: Second Quarter 2018, Payable July 16, 2018
Distribution Amount per Common Share: $0.290

The following table sets forth an estimate of the sources of the Fund’s July distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.

Voya Infrastructure, Industrials and Materials Fund

     

Cumulative

 

% of the Cumulative

Current

% of Current

Distributions for the

Distributions for the

Source

Distribution

Distribution

Fiscal Year-to-Date

Fiscal Year-to-Date1

 
Net Investment Income   $ 0.079   27.22%   $ 0.126   21.65%
Net Realized Short-Term Capital Gains   $ 0.010   3.50%   $ 0.010   1.75%
Net Realized Long-Term Capital Gains   $ 0.201   69.28%   $ 0.444   76.60%
Return of Capital or Other Capital Source(s)   $ 0.000   0.00%   $ 0.000   0.00%
Total per common share   $ 0.290   100.00%   $ 0.580   100.00%

1 The Fund’s fiscal year is March 1, 2018 to February 28, 2019.

 

IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ The amounts and sources of distributions reported in this Section 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Set forth in the table below is information relating to the Fund’s performance based on its net asset value (NAV) for certain periods.

Average annual total return at NAV for the five year period ended on June 30, 20181       7.28 %
Annualized current distribution rate expressed as a percentage of NAV as of June 30, 20182       7.56 %
Cumulative total return at NAV for the fiscal year through June 30, 20183       -4.58 %
Cumulative fiscal year to date distribution rate as a percentage of NAV as of June 30, 20184       1.89 %
1   Average annual total return at NAV represents the compound average of the annual NAV total returns of the Fund for the five-year period ended on June 30, 2018.
2 The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of June 30, 2018.
3 Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to June 30, 2018 including distributions paid and assuming reinvestment of those distributions.
4 Cumulative fiscal year distribution rate for the period from the year-to-date period as a percentage of the Fund’s NAV as of June 30, 2018.
 

Past performance is no guarantee of future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors’ expectations for future distribution changes, the clarity of the Fund’s investment strategy and future return expectations, and investors’ confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund’s investment objective, risks, charges and expenses.

Certain statements made on behalf of the Fund in this release are forward-looking statements. The Fund’s actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in equity markets in general or the Fund’s investments specifically. Neither the Fund nor Voya Investment Management undertake any responsibility to update publicly or revise any forward-looking statement.

This information should not be used as a basis for legal and/or tax advice. In any specific case, the parties involved should seek the guidance and advice of their own legal and tax counsel.

About Voya Investment Management

A leading, active asset management firm, Voya Investment Management manages, as of March 31, 2018, more than $222 billion for affiliated and external institutions as well as individual investors. With more than 40 years of history in asset management, Voya Investment Management has the experience and resources to provide clients with investment solutions with an emphasis on equities, fixed income, and multi-asset strategies and solutions. Voya Investment Management was named by Pensions & Investments Magazine as a 2017 Best Place to Work in Money Management. For more information, visit voyainvestments.com. Follow Voya Investment Management on Twitter @VoyaInvestments.

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First Defiance Financial Corp. Announces 2018 Second Quarter Earnings

DEFIANCE, Ohio–()–First Defiance Financial Corp. (NASDAQ: FDEF) announced today its unaudited financial results for the three and six-month periods ended June 30, 2018. All share data has been adjusted to reflect First Defiance’s two-for-one stock split announced on June 22, 2018, to be issued on July 12, 2018.

Net income for the second quarter ended June 30, 2018, totaled $11.1 million, or $0.54 per diluted common share compared to $8.3 million or $0.41 per diluted common share for the quarter ended June 30, 2017. Earnings per diluted share for the second quarter 2018 were up $0.13, or 31.7% from the second quarter 2017, which included a positive impact from the lower corporate tax rate resulting from the Tax Cuts and Jobs Act enacted in December 2017, which improved earnings approximately $0.08 per diluted share for the second quarter 2018.

“Enhanced profitability, steady growth, and improved asset quality metrics from a year ago were all reflected in our very strong financial performance for the quarter,” said Donald P. Hileman, President and Chief Executive Officer of First Defiance Financial Corp. “Including the benefit of the lower corporate tax rate, our return on assets in the second quarter was 1.48%, up solidly from 1.15% in the second quarter last year. In addition, total assets have grown 5.2% over the last year; and non-accrual loans are down 40% from a year ago. Our outlook remains extremely positive for the rest of the year.”

Net Interest Income up Compared to Second Quarter 2017

Net interest income of $26.5 million in the second quarter of 2018 was up from $24.6 million in the second quarter of 2017. The increase was primarily due to the growth in earning assets supplemented by expansion in the net interest margin versus the second quarter last year. Net interest margin was 3.95% for the second and first quarter of 2018, but up from 3.89% in the second quarter of 2017. Yield on interest earning assets increased by 18 basis points, to 4.51% in the second quarter of 2018 from 4.33% in the second quarter of 2017. The cost of interest-bearing liabilities increased by 16 basis points in the second quarter of 2018 to 0.74% from 0.58% in the second quarter of 2017.

“As the Federal Reserve has increased rates over the last year, our net interest margin has remained strong despite the flattening of the yield curve. Combined with the steady organic growth of our balance sheet, we continue to generate solid growth in net interest income,” said Hileman. “Net interest income for the second quarter was up 7.8% over the second quarter last year, and our interest rate risk position remains well-balanced to future interest rate changes.”

Non-Interest Income up from Second Quarter 2017

First Defiance’s non-interest income for the second quarter of 2018 was $10.2 million compared with $10.1 million in the second quarter of 2017. The second quarter of 2018 had no gains or losses from the sale of securities gains or losses, while the second quarter 2017 included gains of $267,000 from the sale of securities.

Mortgage banking income was $2.0 million in the second quarter of 2018, up from $1.8 million in the second quarter of 2017. Mortgage originations totaled $80.5 million in the second quarter of 2018, up seasonally from the first quarter of 2018 and up from $64.2 million in the same quarter last year. Gains from the sale of mortgage loans increased in the second quarter of 2018 to $1.4 million from $1.3 million in the second quarter of 2017. Mortgage loan servicing revenue was $933,000 in the second quarter of 2018, up slightly from $924,000 in the second quarter of 2017. First Defiance had a positive change in the valuation adjustment in mortgage servicing assets of $47,000 in the second quarter of 2018 compared with a positive adjustment of $16,000 in the second quarter of 2017. In addition, gains on the sale of non-mortgages, which include SBA and FSA loans, totaled $43,000 in the second quarter 2018 compared to $90,000 in the second quarter of 2017.

For the second quarter of 2018, commissions from the sale of insurance products were $3.5 million, up from $3.3 million in the second quarter of 2017 primarily due to added commissions from the Corporate One Benefits Agency Inc. (“Corporate One”) merger. Service fees and other charges were $3.3 million in the second quarter of 2018, up from $3.2 million in the second quarter of 2017. Trust income was $522,000 in the second quarter of 2018, up 12.5% from $464,000 in the second quarter of 2017. Other non-interest income was $281,000 in the second quarter of 2018, down from $612,000 in the second quarter of 2017 mainly due to gains from the sale of real estate owned in the prior year period.

“Our non-interest income growth this quarter reflects continued contributions from all of our key business lines. Insurance commissions and bank service fees had strong gains compared to the second quarter of last year, which more than offset the decline in gains on sales of non-mortgage loans,” continued Hileman. “Total non-interest income, excluding securities gains, increased 3.5% over the second quarter of last year.”

Non-Interest Expenses up from Second Quarter 2017

Total non-interest expense was $22.7 million in the second quarter of 2018, an increase from $20.6 million in the second quarter of 2017. Compensation and benefits increased to $12.9 million in the second quarter of 2018, compared to $11.5 million in the second quarter of 2017. The increase in compensation and benefits versus the prior year reflects merit increases, additional increases to minimum pay levels, higher incentive compensation and increases in staff related to growth strategies. Other non-interest expense of $4.6 million in the second quarter of 2018 was up from $4.0 million in the second quarter of 2017.

Credit Quality

Non-performing loans totaled $18.3 million at June 30, 2018, a decrease from $30.4 million at June 30, 2017. In addition, First Defiance had $1.8 million of real estate owned at June 30, 2018, compared to $672,000 at June 30, 2017. Accruing troubled debt restructured loans were $15.5 million at June 30, 2018, compared with $10.5 million at June 30, 2017.

The second quarter 2018 results include net charge-offs of $369,000 and a provision for loan losses of $423,000 compared with net charge-offs of $2.0 million and a provision of $2.1 million for the same period in 2017.

The allowance for loan loss as a percentage of total loans was 1.15% at June 30, 2018, compared with 1.16% at March 31, 2018, and 1.15% at June 30, 2017.

“We were especially pleased with the decrease in our non-performing assets and improvements in our asset quality ratios this quarter,” said Hileman. “While non-performing assets at June 30, 2018, were only 0.66% of assets, noticeably down from 1.07% a year ago, we continue to work toward further improvements in this area.”

Year-To-Date Results

For the six-month period ended June 30, 2018, net income totaled $22.8 million, or $1.12 per diluted common share, compared to $13.5 million, or $0.68 per diluted common share for the six months ended June 30, 2017. The first six months of 2017 included approximately four months of operations of the Commercial Savings Bank (“CSB”) acquisition completed on February 24, 2017 and three months of operations from Corporate One acquired on April 1, 2017. In comparison, the first six months of 2018 results fully include the operations from both CSB and Corporate One. In addition, the first six months of 2017 includes merger and conversion expenses related to the acquisitions of $3.9 million, which had an after tax impact of $2.8 million, or $0.28 per diluted share.

Net interest income was $52.2 million for the first six months of 2018 compared with $46.3 million in the first six months of 2017. Average interest-earning assets increased to $2.69 billion in the first six months of 2018 compared to $2.47 billion in the first six months of 2017. Net interest margin for the first six months of 2018 was 3.95%, up 9 basis points from the 3.86% margin reported in the six-month period ended June 30, 2017.

The provision for loan losses in the first six months of 2018 was a credit provision of $672,000 compared to an expense of $2.2 million recorded during the first six months of 2017.

Non-interest income for the first six months of 2018 was $20.9 million compared to $20.7 million during the same period of 2017. The first six months of 2017 included a $1.5 million enhancement value gain related to the purchase of bank owned life insurance in the first quarter of 2017.

Service fees and other charges were $6.4 million for the first six months of 2018, up from $5.9 million during the same period of 2017. Mortgage banking income was $3.8 million for the first six months of 2018 compared with $3.6 million during the same period of 2017. Insurance commissions rose to $7.8 million for the first six months of 2018 compared with $6.8 million for the same period of 2017. Non-interest income for the first six months of 2018 included no gains or losses from the sale of securities compared with securities gains of $267,000 during the same period of 2017.

Non-interest expense was $45.9 million for the first six months of 2018, up from $43.8 million for the same period of 2017. Compensation and benefits expense was $26.1 million for the first six months of 2018 compared with $25.8 million during the same period of 2017. Expenses also included increases in occupancy of $306,000, data processing of $230,000, amortization of intangibles of $112,000 and other expenses of $1.2 million.

Total Assets at $3.0 Billion

Total assets at June 30, 2018, were $3.04 billion compared to $2.99 billion at December 31, 2017, and $2.89 billion at June 30, 2017. Net loans receivable (excluding loans held for sale) were $2.36 billion at June 30, 2018, compared to $2.32 billion at December 31, 2017, and $2.23 billion at June 30, 2017. Also, at June 30, 2018, goodwill and other intangible assets totaled $103.6 million compared to $104.3 million at December 31, 2017, and $104.7 million at June 30, 2017. Total deposits at June 30, 2018, were $2.49 billion compared with $2.44 billion at December 31, 2017, and $2.33 billion at June 30, 2017. Total stockholders’ equity was $386.9 million at June 30, 2018, compared to $373.3 million at December 31, 2017, and $361.4 million at June 30, 2017.

Dividend to be Paid August 24

The Board of Directors declared a quarterly cash dividend of $0.17 per common share payable August 24, 2018, to shareholders of record at the close of business on August 17, 2018. The dividend represents an annual dividend of 2.08 percent based on the First Defiance common stock closing price on July 13, 2018. First Defiance has approximately 20,396,178 common shares outstanding.

Conference Call

First Defiance Financial Corp. will host a conference call at 11:00 a.m. ET on Tuesday, July 17, 2018, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. In addition, a live webcast may be accessed at https://services.choruscall.com/links/fdef180717.html.

The replay of the conference call Webcast will be available at www.fdef.com until 9:00 a.m. ET on July 17, 2019.

First Defiance Financial Corp.

First Defiance Financial Corp. (NASDAQ:FDEF), headquartered in Defiance, Ohio, is the holding company for First Federal Bank of the Midwest and First Insurance Group. First Federal Bank operates 43 full-service branches and numerous ATM locations in northwest and central Ohio, southeast Michigan and northeast Indiana and a loan production office in Ann Arbor, Michigan. First Insurance Group is a full-service insurance agency with nine offices throughout northwest Ohio.

For more information, visit the company’s website at www.fdef.com.

-Financial Statements and Highlights Follow-

Safe Harbor Statement

This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Act of 1934, as amended, which are intended to be safe harbors created thereby. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of First Defiance Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions, the nature, extent and timing of governmental actions and reforms, future movements of interest rates, the production levels of mortgage loan generation, the ability to continue to grow loans and deposits, the ability to benefit from a changing interest rate environment, the ability to sustain credit quality ratios at current or improved levels, the ability to sell real estate owned properties, continued strength in the market area for First Federal Bank of the Midwest, and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including those inherent in general and local banking, insurance and mortgage conditions, competitive factors specific to markets in which First Defiance and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions or capital market conditions and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2017. One or more of these factors have affected or could in the future affect First Defiance’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by First Defiance or any other persons, that our objectives and plans will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of First Defiance. We assume no obligation to update any forward-looking statements.

As required by U.S. GAAP, First Defiance will evaluate the impact of subsequent events through the issuance date of its June 30, 2018 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause First Defiance to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

   
Consolidated Balance Sheets (Unaudited)
First Defiance Financial Corp.
 
June 30, December 31,

(in thousands)

  2018   2017
 
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions $ 53,885 $ 58,693
Interest-bearing deposits   53,000     55,000  
106,885 113,693
Securities
Available-for sale, carried at fair value 286,350 260,650
Held-to-maturity, carried at amortized cost   607     648  
286,957 261,298
 
Loans 2,385,344 2,348,713
Allowance for loan losses   (27,321 )   (26,683 )
Loans, net 2,358,023 2,322,030
Loans held for sale 15,422 10,435
Mortgage servicing rights 9,948 9,808
Accrued interest receivable 9,475 8,706
Federal Home Loan Bank stock 15,989 15,992
Bank Owned Life Insurance 66,860 66,230
Office properties and equipment 40,444 40,217
Real estate and other assets held for sale 1,795 1,532
Goodwill 98,569 98,569
Core deposit and other intangibles 5,024 5,703
Deferred taxes 1,106 231
Other assets   23,092     38,959  
Total Assets $ 3,039,589   $ 2,993,403  
 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits $ 548,147 $ 571,360
Interest-bearing deposits   1,940,981     1,866,296  
Total deposits 2,489,128 2,437,656
Advances from Federal Home Loan Bank 85,722 84,279
Notes payable and other interest-bearing liabilities 6,899 26,019
Subordinated debentures 36,083 36,083
Advance payments by borrowers for tax and insurance 5,207 2,925
Other liabilities   29,630     33,155  
Total Liabilities 2,652,669 2,620,117
Stockholders’ Equity
Preferred stock
Common stock, net 127 127
Additional paid-in-capital 160,847 160,940
Accumulated other comprehensive income (loss) (3,235 ) 217
Retained earnings 279,122 262,900
Treasury stock, at cost   (49,941 )   (50,898 )
Total stockholders’ equity   386,920     373,286  
Total Liabilities and Stockholders’ Equity $ 3,039,589   $ 2,993,403  
 
 
Consolidated Statements of Income (Unaudited)
First Defiance Financial Corp.
Three Months Ended   Six Months Ended

June 30,

June 30,

(in thousands, except per share amounts)

2018   2017 2018   2017
Interest Income:    
Loans $ 27,660 $ 25,318 $ 54,186 $ 47,288
Investment securities 2,039 1,752 3,890 3,507
Interest-bearing deposits 373 201 670 346
FHLB stock dividends   227   187   458     353
Total interest income 30,299 27,458 59,204 51,494
Interest Expense:
Deposits 3,144 2,170 5,755 3,966
FHLB advances and other 282 414 601 780
Subordinated debentures 320 229 600 443
Notes Payable   6   13   14     28
Total interest expense   3,752   2,826   6,970     5,217
Net interest income 26,547 24,632 52,234 46,277
Provision for loan losses   423   2,118   (672 )   2,172
Net interest income after provision for loan losses 26,124 22,514 52,906 44,105
Non-interest Income:
Service fees and other charges 3,296 3,161 6,427 5,920
Mortgage banking income 2,013 1,830 3,755 3,568
Gain on sale of non-mortgage loans 43 90 267 90
Gain on sale of securities 267 267
Insurance commissions 3,493 3,294 7,770 6,752
Trust income 522 464 1,074 914
Income from Bank Owned Life Insurance 566 422 966 2,245
Other non-interest income   281   612   658     933
Total Non-interest Income 10,214 10,140 20,917 20,689
Non-interest Expense:
Compensation and benefits 12,885 11,473 26,134 25,808
Occupancy 2,026 1,954 4,097 3,791
FDIC insurance premium 202 353 562 643
Financial institutions tax 531 535 1,062 1,014
Data processing 2,083 2,019 4,188 3,958
Amortization of intangibles 332 334 679 567
Other non-interest expense   4,606   3,962   9,194     7,991
Total Non-interest Expense   22,665   20,630   45,916     43,772
Income before income taxes 13,673 12,024 27,907 21,022
Income taxes   2,564   3,677   5,061     7,534
Net Income $ 11,109 $ 8,347 $ 22,846   $ 13,488
 
Earnings per common share:
Basic $ 0.54 $ 0.41 $ 1.12 $ 0.69
Diluted $ 0.54 $ 0.41 $ 1.12 $ 0.68
 
Average Shares Outstanding:
Basic 20,388 20,294 20,359 19,586
Diluted 20,492 20,408 20,466 19,696
 
 
Financial Summary and Comparison (Unaudited)
First Defiance Financial Corp.
 
  Three Months Ended Six Months Ended

June 30,

June 30,

(dollars in thousands, except per share data)

  2018   2017   % change   2018   2017   % change
Summary of Operations        
 
Tax-equivalent interest income (2) $ 30,550 $ 27,944 9.3 % $ 59,693 $ 52,450 13.8 %
Interest expense 3,752 2,826 32.8 6,970 5,217 33.6
Tax-equivalent net interest income (2) 26,798 25,118 6.7 52,723 47,233 11.6
Provision for loan losses 423 2,118 NM (672 ) 2,172 NM
Tax-equivalent NII after provision for loan loss (2) 26,375 23,000 14.7 53,395 45,061 18.5
Investment Securities gains 267 NM 267 NM
Non-interest income (excluding securities gains/losses) 10,214 9,873 3.5 20,917 20,422 2.4
Non-interest expense 22,665 20,630 9.9 45,916 43,772 4.9
Income taxes 2,564 3,677 (30.3 ) 5,061 7,534 (32.8 )
Net Income 11,109 8,347 33.1 22,846 13,488 69.4
Tax equivalent adjustment (2)     251       486     (48.4 )     489       956     (48.8 )
At Period End
Assets 3,039,589 2,890,507 5.2
Earning assets 2,756,712 2,596,674 6.2
Loans 2,385,344 2,254,435 5.8
Allowance for loan losses 27,321 25,915 5.4
Deposits 2,489,128 2,326,702 7.0
Stockholders’ equity     386,920       361,430     7.1              
Average Balances
Assets 3,018,808 2,908,483 3.8 2,998,336 2,765,443 8.4
Earning assets 2,714,328 2,591,397 4.7 2,689,216 2,473,471 8.7
Loans 2,337,294 2,238,061 4.4 2,326,805 2,132,064 9.1
Deposits and interest-bearing liabilities 2,600,029 2,516,024 3.3 2,582,782 2,395,874 7.8
Deposits 2,487,430 2,346,336 6.0 2,460,934 2,227,986 10.5
Stockholders’ equity 381,165 357,523 6.6 377,579 335,983 12.4
Stockholders’ equity / assets     12.63 %     12.29 %   2.7       12.59 %     12.15 %   3.7  
Per Common Share Data
Net Income
Basic $ 0.54 $ 0.41 31.7 $ 1.12 $ 0.69 62.3
Diluted 0.54 0.41 31.7 1.12 0.68 64.7
Dividends 0.15 0.125 20.0 0.30 0.25 20.0
Market Value:
High $ 33.72 $ 28.45 18.5 $ 33.72 $ 28.45 18.5
Low 27.63 24.39 13.3 25.51 23.14 10.3
Close 33.53 26.34 27.3 33.53 26.34 27.3
Common Book Value 18.97 17.81 6.5 18.97 17.81 6.5
Tangible Common Book Value (1) 13.89 12.66 9.7 13.89 12.66 9.7
Shares outstanding, end of period (000)     20,396       20,298     0.5       20,396       20,298     0.5  
Performance Ratios (annualized)
Tax-equivalent net interest margin (2) 3.95 % 3.89 % 1.6 3.95 % 3.86 % 2.5
Return on average assets 1.48 % 1.15 % 28.2 1.54 % 0.98 % 56.2
Return on average equity 11.69 % 9.36 % 24.8 12.20 % 8.10 % 50.7
Efficiency ratio (3) 61.24 % 58.96 % 3.9 62.35 % 64.70 % (3.6 )
Effective tax rate 18.75 % 30.58 % (38.7 ) 18.14 % 35.84 % (49.4 )
Dividend payout ratio (basic)     27.78 %     30.49 %   (8.9 )     26.79 %     36.23 %   (26.1 )
 

(1)

 

Tangible common book value = total stockholders’ equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period.

(2)

Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal

income tax rate of 21% in 2018 and 35% in 2017.

(3)

Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

NM

Percentage change not meaningful

 
 
Income from Mortgage Banking
       
Revenue from sales and servicing of mortgage loans consisted of the following:
 
Three Months Ended Six Months Ended

June 30,

June 30,

(dollars in thousands)   2018   2017   2018   2017
 
Gain from sale of mortgage loans $ 1,383 $ 1,293 $ 2,464 $ 2,377
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue 933 924 1,877 1,858
Amortization of mortgage servicing rights (350 ) (403 ) (669 ) (715 )
Mortgage servicing rights valuation adjustments   47       16     83       48  
  630       537     1,291       1,191  

Total revenue from sale and servicing of mortgage loans

$ 2,013     $ 1,830   $ 3,755     $ 3,568  
 
   
Yield Analysis
First Defiance Financial Corp.
   
Three Months Ended June 30,

(dollars in thousands)

2018   2017
Average     Yield Average     Yield
Balance Interest(1) Rate(2) Balance Interest(1) Rate(2)
Interest-earning assets:
Loans receivable $ 2,337,294 $ 27,685 4.75 % $ 2,238,061 $ 25,368 4.55 %
Securities 280,131 2,265 3.20 %

(3)

259,619 2,188 3.42 %

(3)

Interest Bearing Deposits 80,914 373 1.85 %

 

77,725 201 1.04 %
FHLB stock   15,989   227 5.69 %   15,992   187 4.69 %
Total interest-earning assets 2,714,328 30,550 4.51 % 2,591,397 27,944 4.33 %
Non-interest-earning assets   304,480   317,086
Total assets $ 3,018,808 $ 2,908,483
Deposits and Interest-bearing liabilities:
Interest bearing deposits $ 1,933,409 $ 3,144 0.65 % $ 1,785,895 $ 2,170 0.49 %
FHLB advances and other 67,261 282 1.68 % 104,923 414 1.58 %
Subordinated debentures 36,198 320 3.55 % 36,156 229 2.54 %
Notes payable   9,140   6 0.26 %   28,609   13 0.18 %
Total interest-bearing liabilities 2,046,008 3,752 0.74 % 1,955,583 2,826 0.58 %
Non-interest bearing deposits   554,021     560,441  
Total including non-interest-bearing demand deposits 2,600,029 3,752 0.58 % 2,516,024 2,826 0.45 %
Other non-interest-bearing liabilities   37,614   34,936
Total liabilities 2,637,643 2,550,960
Stockholders’ equity   381,165   357,523
Total liabilities and stockholders’ equity $ 3,018,808   $ 2,908,483  
Net interest income; interest rate spread $ 26,798 3.77 % $ 25,118 3.75 %
Net interest margin (4) 3.95 % 3.89 %
Average interest-earning assets to average interest bearing liabilities 133 % 133 %
 
Six Months Ended June 30,
2018 2017
Average Yield Average Yield
Balance Interest(1) Rate Balance Interest(1) Rate
Interest-earning assets:
Loans receivable $ 2,326,805 $ 54,236 4.70 % $ 2,132,064 $ 47,390 4.48 %
Securities 271,864 4,329 3.21 % 257,230 4,361 3.46 %

(3)

Interest Bearing Deposits 74,557 670 1.81 % 68,904 346 1.01 %
FHLB stock   15,990   458 5.78 %   15,273   353 4.66 %
Total interest-earning assets 2,689,216 59,693 4.48 % 2,473,471 52,450 4.28 %
Non-interest-earning assets   309,120   291,972
Total assets $ 2,998,336 $ 2,765,443
Deposits and Interest-bearing liabilities:
Interest bearing deposits $ 1,911,199 $ 5,755 0.61 % $ 1,706,318 $ 3,966 0.47 %
FHLB advances and other 73,092 601 1.66 % 104,600 780 1.50 %
Subordinated debentures 36,195 600 3.34 % 36,153 443 2.46 %
Notes payable   12,561   14 0.22 %   27,135   28 0.21 %
Total interest-bearing liabilities 2,033,047 6,970 0.69 % 1,874,206 5,217 0.56 %
Non-interest bearing deposits   549,735     521,668  
Total including non-interest-bearing demand deposits 2,582,782 6,970 0.54 % 2,395,874 5,217 0.44 %
Other non-interest-bearing liabilities   37,975   33,586
Total liabilities 2,620,757 2,429,460
Stockholders’ equity   377,579   335,983
Total liabilities and stockholders’ equity $ 2,998,336   $ 2,765,443  
Net interest income; interest rate spread $ 52,723 3.79 % $ 47,233 3.72 %
Net interest margin (4) 3.95 % 3.86 %
Average interest-earning assets to average interest bearing liabilities 132 % 132 %
 

(1)

 

Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21% in 2018 and 35% in 2017.

(2)

Annualized

(3)

Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses.

(4)

Net interest margin is tax equivalent net interest income divided by average interest-earning assets.

 
 

Selected Quarterly Information

First Defiance Financial Corp.

 

(dollars in thousands, except per share data)

 

2nd Qtr 2018

  1st Qtr 2018   4th Qtr 2017   3rd Qtr 2017   2nd Qtr 2017
Summary of Operations          
Tax-equivalent interest income (1) $ 30,550 $ 29,142 $ 29,009 $ 28,557 $ 27,944
Interest expense 3,752 3,218 3,140 3,074 2,826
Tax-equivalent net interest income (1) 26,798 25,924 25,869 25,483 25,118
Provision for loan losses 423 (1,095 ) 314 462 2,118
Tax-equivalent NII after provision for loan losses (1) 26,375 27,019 25,555 25,021 23,000
Investment securities gains, net of impairment 160 158 267
Non-interest income (excluding securities gains/losses) 10,214 10,703 9,737 9,337 9,873
Non-interest expense 22,665 23,251 21,141 20,440 20,630
Income taxes 2,564 2,497 4,430 4,219 3,677
Net income 11,109 11,737 9,399 9,381 8,347
Tax equivalent adjustment (1)     251       237       482       476       486  
At Period End
Total assets $ 3,039,589 $ 3,023,004 $ 2,993,403 $ 2,935,030 $ 2,890,507
Earning assets 2,756,712 2,748,338 2,691,438 2,633,996 2,596,674
Loans 2,385,344 2,358,330 2,348,713 2,276,042 2,254,435
Allowance for loan losses 27,321 27,267 26,683 26,341 25,915
Deposits 2,489,128 2,491,801 2,437,656 2,360,675 2,326,702
Stockholders’ equity 386,920 379,214 373,286 367,924 361,430
Stockholders’ equity / assets 12.73 % 12.54 % 12.47 % 12.54 % 12.50 %
Goodwill     98,569       98,569       98,569       98,370       98,318  
Average Balances
Total assets $ 3,018,808 $ 2,977,864 $ 2,968,445 $ 2,906,795 $ 2,908,483
Earning assets 2,714,328 2,664,114 2,646,643 2,590,463 2,591,397
Loans 2,337,294 2,316,316 2,279,358 2,251,071 2,238,061
Deposits and interest-bearing liabilities 2,600,029 2,565,537 2,560,258 2,507,805 2,516,024
Deposits 2,487,430 2,434,440 2,400,061 2,338,817 2,346,336
Stockholders’ equity 381,165 373,993 369,366 363,612 357,523
Stockholders’ equity / assets     12.63 %     12.56 %     12.44 %     12.51 %     12.29 %
Per Common Share Data
Net Income:
Basic $ 0.54 $ 0.58 $ 0.47 $ 0.46 $ 0.41
Diluted 0.54 0.58 0.46 0.46 0.41
Dividends 0.15 0.15 0.125 0.125 0.125
Market Value:
High $ 33.72 $ 29.93 $ 28.46 $ 27.00 $ 28.45
Low 27.63 25.51 25.14 23.51 24.39
Close 33.53 28.66 25.99 26.25 26.34
Common Book Value 18.97 18.62 18.38 18.13 17.81
Shares outstanding, end of period (in thousands)     20,396       20,364       20,312       20,298       20,298  
Performance Ratios (annualized)
Tax-equivalent net interest margin (1) 3.95 % 3.95 % 3.88 % 3.91 % 3.89 %
Return on average assets 1.48 % 1.60 % 1.26 % 1.28 % 1.15 %
Return on average equity 11.69 % 12.73 % 10.10 % 10.24 % 9.36 %
Efficiency ratio (2) 61.24 % 63.48 % 59.37 % 58.70 % 58.96 %
Effective tax rate 18.75 % 17.54 % 32.03 % 31.02 % 30.58 %
Common dividend payout ratio (basic)     27.78 %     26.09 %     26.88 %     27.17 %     30.49 %

(1)

 

Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21% in 2018 and 35% in 2017.

(2)

Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains, net.

 
 

Selected Quarterly Information

First Defiance Financial Corp.

 
(dollars in thousands, except per share data)   2nd Qtr 2018   1st Qtr 2018   4th Qtr 2017   3rd Qtr 2017   2nd Qtr 2017
Loan Portfolio Composition          
One to four family residential real estate $ 307,480 $ 275,547 $ 274,862 $ 271,048 $ 276,578
Construction 283,911 251,944 265,476 244,920 234,688
Commercial real estate 1,283,698 1,282,027 1,235,221 1,205,695 1,182,087
Commercial 489,296 500,496 526,142 510,240 515,004
Consumer finance 29,724 28,035 29,109 29,009 28,860
Home equity and improvement   129,868       133,407       135,457       132,220       130,429  
Total loans 2,523,977 2,471,456 2,466,267 2,393,132 2,367,646
Less:
Undisbursed loan funds 136,563 111,450 115,972 115,714 112,000
Deferred loan origination fees 2,070 1,676 1,582 1,379 1,211
Allowance for loan loss   27,321       27,267       26,683       26,341       25,915  
Net Loans $ 2,358,023     $ 2,331,063     $ 2,322,030     $ 2,249,698     $ 2,228,520  
                     
Allowance for loan loss activity
Beginning allowance $ 27,267 $ 26,683 $ 26,341 $ 25,915 $ 25,749
Provision for loan losses 423 (1,095 ) 314 462 2,118
Credit loss charge-offs:
One to four family residential real estate 78 16 170 60 0
Commercial real estate 254 55 29 0 110
Commercial 84 97 210 64 2,027
Consumer finance 72 31 27 20 21
Home equity and improvement   41       117       55       92       100  
Total charge-offs 529 316 491 236 2,258
Total recoveries   160       1,995       519       200       306  
Net charge-offs (recoveries)   369       (1,679 )     (28 )     36       1,952  
Ending allowance $ 27,321     $ 27,267     $ 26,683     $ 26,341     $ 25,915  
                     
Credit Quality
Total non-performing loans (1) $ 18,340 $ 27,925 $ 30,715 $ 29,152 $ 30,359
Real estate owned (REO)   1,795       1,440       1,532       532       672  
Total non-performing assets (2) $ 20,135     $ 29,365     $ 32,247     $ 29,684     $ 31,031  
Net charge-offs (recoveries) 369 (1,679 ) (28 ) 36 1,952
 
Restructured loans, accruing (3) 15,834 13,722 13,770 13,044 10,521
 
Allowance for loan losses / loans 1.15 % 1.16 % 1.14 % 1.16 % 1.15 %
Allowance for loan losses / non-performing assets 135.69 % 92.86 % 82.75 % 88.74 % 83.51 %
Allowance for loan losses / non-performing loans 148.97 % 97.64 % 86.87 % 90.36 % 85.36 %
Non-performing assets / loans plus REO 0.84 % 1.24 % 1.37 % 1.30 % 1.38 %
Non-performing assets / total assets 0.66 % 0.97 % 1.08 % 1.01 % 1.07 %
Net charge-offs / average loans (annualized) 0.06 % -0.29 % 0.00 % 0.01 % 0.35 %
                     
Deposit Balances
Non-interest-bearing demand deposits $ 548,147 $ 550,742 $ 571,360 $ 519,911 $ 520,778
Interest-bearing demand deposits and money market 1,021,445 1,055,416 1,005,519 989,514 967,834
Savings deposits 297,870 306,510 302,022 296,230 288,643
Retail time deposits less than $250,000 547,871 512,746 504,912 504,277 499,298
Retail time deposits greater than $250,000   73,795       66,387       53,843       50,743       50,149  
Total deposits $ 2,489,128     $ 2,491,801     $ 2,437,656     $ 2,360,675     $ 2,326,702  
 

(1)

 

Non-performing loans consist of non-accrual loans.

(2)

Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.

(3)

Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

 
 

Loan Delinquency Information

First Defiance Financial Corp.

 

 

      30 to 89 days   Non Accrual

(dollars in thousands)

  Total Balance   Current   past due   Loans
 
June 30, 2018                
One to four family residential real estate $ 307,480 $ 303,263 $ 1,806 $ 2,411
Construction 283,911 283,911
Commercial real estate 1,283,698 1,273,236 222 10,240
Commercial 489,296 483,574 577 5,145
Consumer finance 29,724 29,438 221 65
Home equity and improvement   129,868     128,234     1,155     479
Total loans   2,523,977   $ 2,501,656   $ 3,981   $ 18,340
 
December 31, 2017                
One to four family residential real estate $ 274,862 $ 269,624 $ 2,201 $ 3,037
Construction 265,476 265,476
Commercial real estate 1,235,221 1,215,980 1,022 18,219
Commercial 526,142 515,874 1,427 8,841
Consumer finance 29,109 28,728 353 28
Home equity and improvement   135,457     131,986     2,881     590
Total loans $ 2,466,267   $ 2,427,668   $ 7,884   $ 30,715
 
June 30, 2017                
One to four family residential real estate $ 276,578 $ 270,729 $ 2,710 $ 3,139
Construction 234,688 234,445 243
Commercial real estate 1,182,087 1,161,810 1,370 18,907
Commercial 515,004 506,996 545 7,463
Consumer finance 28,860 28,594 215 51
Home equity and improvement   130,429     128,668     1,205     556
Total loans $ 2,367,646   $ 2,331,242   $ 6,045   $ 30,359
 

http://www.businesswire.com/news/home/20180716005852/en/Defiance-Financial-Corp.-Announces-2018-Quarter-Earnings/?feedref=JjAwJuNHiystnCoBq_hl-ceWiCTQwhN3aQTeAnDJHPSD1w08bW43U_zsPK9s38B4rCOi9QzgjCezTS3Nw_X6kJUrpSBm-Hav1w-UkdSlG3lPIirMT6pF-MmHrzGbBDw5uY882fGf0lt1RTkSC2Xm4A==

Celanese Corporation Declares Quarterly Dividend of $0.54 Per Share

DALLAS–()–Celanese Corporation (NYSE:CE), a global technology and specialty materials company, declared a quarterly dividend of $0.54 per share on its Series A common stock, payable on August 6, 2018.

The dividend is payable to stockholders of record as of July 27, 2018.

About Celanese

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese’s global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2017 net sales of $6.1 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.

All registered trademarks are owned by Celanese International Corporation or its affiliates.

Forward-Looking Statements

This release may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company or our customers will realize these benefits or that these expectations will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

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Colony Credit Real Estate Announces Monthly Dividend for Common Stockholders

NEW YORK & LOS ANGELES–()–Colony Credit Real Estate, Inc. (NYSE: CLNC) (“Colony Credit Real Estate” or the “Company”) today announced that the Company’s Board of Directors has declared its monthly cash dividend of $0.145 per share of class A and class B-3 common stock (the “Common Stock”) for the monthly period ended July 31, 2018. The Common Stock dividend will be paid on August 10, 2018, to stockholders of record on July 31, 2018. This dividend represents an annualized dividend of $1.74 per share of Common Stock.

About Colony Credit Real Estate, Inc.

Colony Credit Real Estate (NYSE: CLNC) is one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties predominantly in the United States. Colony Credit Real Estate is externally managed by a subsidiary of leading global real estate and investment management firm, Colony Capital, Inc. Colony Credit Real Estate is organized as a Maryland corporation that intends to elect to be taxed as a REIT for U.S. federal income tax purposes for its taxable year ending December 31, 2018. For additional information regarding the Company and its management and business, please refer to www.clncredit.com.

Forward-Looking Statement

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Among others, the following uncertainties and other factors could cause actual results to differ from those set forth in the forward-looking statements: operating costs and business disruption may be greater than expected; the Company’s operating results may differ materially from the pro forma information presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017; the fair value of the Company’s investments may be subject to uncertainties; the Company’s use of leverage could hinder its ability to make distributions and may significantly impact its liquidity position; given the Company’s dependence on its external manager, an affiliate of Colony Capital, any adverse changes in the financial health or otherwise of its manager or Colony Capital could hinder the Company’s operating performance and return on stockholder’s investment; the ability to realize substantial efficiencies as well as anticipated strategic and financial benefits; and the impact of legislative, regulatory and competitive changes. The foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as in CLNC’s other filings with the Securities and Exchange Commission.

We caution investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. Colony Credit Real Estate is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and Colony Credit Real Estate does not intend to do so.

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First Trust Dynamic Europe Equity Income Fund Issues Notice Regarding July 2018 Distribution

WHEATON, Ill.–()–The Board of Trustees of First Trust Dynamic Europe Equity Income Fund (the “Fund”) (NYSE: FDEU), CUSIP 33740D107, previously approved a managed distribution policy for the Fund (the “Managed Distribution Plan”) in reliance on exemptive relief received from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains as frequently as monthly each tax year.

The Fund has declared a distribution payable on July 16, 2018, to shareholders of record as of July 3, 2018, with an ex-dividend date of July 2, 2018. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund’s investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.

The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income (“NII”); net realized short-term capital gains (“STCG”); net realized long-term capital gains (“LTCG”); and return of capital (“ROC”). These estimates are based upon information as of June 30, 2018, are calculated based on a generally accepted accounting principles (“GAAP”) basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.

                                                   
5 Yr. Avg.
Annualized Annual
Current Total
Fund Fund Fiscal Total Current Current Distribution ($) Current Distribution (%) Dist. Rate as a Return

Ticker

Cusip

Year End

Distribution

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

% of NAV(3)

on NAV(4)

FDEU 33740D107 12/31/2018 $0.12100 $0.09549 $0.02140 $0.00411 78.91% 17.69% 3.40% 8.23% 6.07%
 
 
Cumulative
Total Cumulative Fiscal
Cumulative Cumulative Distributions Fiscal YTD Fiscal YTD YTD Total
Fund Fund Fiscal Fiscal YTD Cumulative Distributions Fiscal YTD ($) (%) Distributions as Return

Ticker

Cusip

Year End

Distributions(1)

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

a % of NAV(3)

on NAV(4)

FDEU 33740D107 12/31/2018 $0.84700 $0.66837 $0.14983 $0.02880 78.91% 17.69% 3.40% 4.80% -7.61%
 

(1) Includes the most recent monthly distribution paid on July 16, 2018.

(2) The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”.

(3) Based on Net Asset Value (“NAV”) as of June 30, 2018.

(4) Total Returns are through June 30, 2018. The return included in the 5 Year Average Annual Total Return on NAV column is from the Fund’s first public offering, which was September 24, 2015.

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.

First Trust Advisors L.P. (“FTA”) is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $126 billion as of June 30, 2018 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

Janus Capital Management LLC, a legal entity of Janus Henderson Investors, serves as the Fund’s investment sub-advisor. Janus Henderson Investors is headquartered in London and is a global investment management firm that provides a full spectrum of investment products and services to clients around the world. With offices in 27 cities with more than 2,000 employees, Janus Henderson Investors managed approximately $371.9 billion in assets as of March 31, 2018.

Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Principal Risk Factors: The Fund is subject to risks, including the fact that it is a non-diversified closed-end management investment company.

Because the Fund will invest primarily in securities of non-U.S. issuers, which are generally denominated in non-U.S. currencies, there are risks not typically associated with investing in securities of U.S. issuers. Non-U.S. issuers are subject to higher volatility than securities of U.S. issuers. An investor may lose money if the local currency of a non-U.S. market depreciates against the U.S. dollar.

Investments in securities of issuers located in emerging market countries are considered speculative and there is a heightened risk of investing in emerging markets securities.

The Fund will engage in practices and strategies that will result in exposure to fluctuations in foreign exchange rates, thus subjecting it to foreign currency risk.

The Fund’s use of derivatives may result in losses greater than if they had not been used, may require the Fund to sell or purchase portfolio securities at inopportune times, may limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold a security that it might otherwise sell.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

The risks of investing in the Fund are spelled out in the shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.

Forward-Looking Statements

Certain statements made in this press release that are not historical facts are referred to as “forward-looking statements” under the U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from those anticipated in any forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no responsibility to update publicly or revise any forward-looking statements.

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First Trust Energy Infrastructure Fund Issues Notice Regarding July 2018 Distribution

WHEATON, Ill.–()–The Board of Trustees of First Trust Energy Infrastructure Fund (the “Fund”) (NYSE: FIF), CUSIP 33738C103, previously approved a managed distribution policy for the Fund (the “Managed Distribution Plan”) in reliance on exemptive relief received from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains as frequently as monthly each tax year.

The Fund has declared a distribution payable on July 16, 2018, to shareholders of record as of July 3, 2018, with an ex-dividend date of July 2, 2018. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund’s investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.

The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income (“NII”); net realized short-term capital gains (“STCG”); net realized long-term capital gains (“LTCG”); and return of capital (“ROC”). These estimates are based upon information as of June 30, 2018, are calculated based on a generally accepted accounting principles (“GAAP”) basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.

                          5 Yr. Avg.
Annualized Current Annual Total
Fund Fund Fiscal Total Current Current Distribution ($) Current Distribution (%) Dist. Rate as a Return

Ticker

Cusip

Year End

Distribution

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

% of NAV(3)

on NAV(4)

FIF (5) 33738C103 11/30/2018 $0.11000 $0.01909 $0.02126 $0.06965 17.35% 19.33% 63.32% 7.70% 3.49%
 
 
Total Cumulative Cumulative Fiscal
Fund Fund Fiscal Cumulative Fiscal YTD Cumulative Distributions Fiscal YTD ($) Cumulative Distributions Fiscal YTD (%) Fiscal YTD Distributions as YTD Total Return

Ticker

Cusip

Year End

Distributions(1)

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

a % of NAV(3)

on NAV(4)

FIF (5) 33738C103 11/30/2018 $0.88000 $0.15268 $0.17013 $0.55719 17.35% 19.33% 63.32% 5.13% -4.23%
        (1) Includes the most recent monthly distribution paid on July 16, 2018.
(2) The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”.
(3) Based on Net Asset Value (“NAV”) as of June 30, 2018.
(4) Total Returns are through June 30, 2018.
(5) The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital.
 

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.

First Trust Advisors L.P. (“FTA”) is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $126 billion as of June 30, 2018 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

Energy Income Partners, LLC (“EIP”) serves as the Fund’s investment sub-advisor and provides advisory services to a number of investment companies and partnerships for the purpose of investing in MLPs and other energy infrastructure securities. EIP is one of the early investment advisors specializing in this area. As of June 30, 2018, EIP managed or supervised approximately $6.1 billion in client assets.

Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Principal Risk Factors: The Fund is subject to risks, including the fact that it is a non-diversified closed-end management investment company.

Because the Fund is concentrated in securities issued by energy infrastructure companies, it will be more susceptible to adverse economic or regulatory occurrences affecting that industry, including high interest costs, high leverage costs, the effects of economic slowdown, surplus capacity, increased competition, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors.

The Fund invests in securities of non-U.S. issuers which are subject to higher volatility than securities of U.S. issuers. Because the Fund invests in non-U.S. securities, you may lose money if the local currency of a non-U.S. market depreciates against the U.S. dollar.

There can be no assurance as to what portion of the distributions paid to the Fund’s Common Shareholders will consist of tax-advantaged qualified dividend income.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

The risks of investing in the Fund are spelled out in the shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.

Forward-Looking Statements

Certain statements made in this press release that are not historical facts are referred to as “forward-looking statements” under the U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from those anticipated in any forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no responsibility to update publicly or revise any forward-looking statements.

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