Strong Loan and Deposit Growth and Record Mortgage Originations
Drive Profitable Growth
Completes Largest Bank IPO in Tennessee History
NASHVILLE, Tenn.--(BUSINESS WIRE)--
FB Financial Corporation (“FB Financial” or “the Company”) (NYSE: FBK),
parent company of FirstBank, reported its results today for the third
quarter ended September 30, 2016.
“We are extremely pleased with the third quarter having completed the
largest bank IPO in Tennessee history while continuing our profitable
growth,” said James W. Ayers, Executive Chairman of FB Financial
Corporation. “We raised $129 million in gross proceeds from the offering
and are thrilled with the strong interest from the investor community,
both locally and nationally. We are very excited that each of our
full-time associates were given a stock award and about the
opportunities for our Company as we deploy the proceeds from our IPO to
create future shareholder value.”
Key Highlights
-
Successfully completed largest bank IPO in Tennessee history with $129
million in gross proceeds
-
Total revenues of $71.6 million for the quarter, up 39.9% from the
third quarter of 2015
-
Continued customer-focused balance sheet growth, resulting in net
interest margin on a tax-equivalent basis (NIM) of 4.05%, up 10 basis
points from the third quarter of 2015
-
Loans held for investment (HFI) grew to $1.79 billion, up 8.7%
from September 30, 2015
-
Total deposits grew to $2.64 billion, up 16.0% from the third
quarter of 2015
-
Record mortgage loan originations totaling $1.36 billion for the
quarter, up 72.8% over the third quarter of 2015
-
Nonperforming assets to total assets, excluding acquired assets,
declined to 0.68% from 0.97% at September 30, 2015
-
Book value per share and tangible book value per share ended the
quarter at $13.73 and $11.56, respectively
-
Shareholders’ equity to assets and tangible common equity to tangible
assets ended the quarter at 10.33% and 8.84%, respectively
President and CEO Christopher T. Holmes stated, “We grew total revenues
for the quarter within our Banking and Mortgage Segments by a combined
39.9% over the same quarter of 2015, highlighting our core strategic
objectives and driving strong results for our shareholders. Our
associates continue to focus on customer service and execution of our
strategy every day.”
Financial Summary
Prior to the IPO, the Company was an S corporation and did not incur
federal income tax expense. Furthermore, in connection with the IPO and
its conversion to a C corporation, the Company recorded a one-time tax
charge of $13.2 million during the third quarter of 2016. As a result,
we have excluded the one-time tax charge and made pro forma adjustments
to income tax expense, net income, and related earnings per share
amounts for the third quarters of 2016 and 2015, as well as previously
reported quarters. This reflects the results of the Company on a C
corporation tax basis for each period (referred to herein as “pro forma”
amounts, as applicable).
Including the one-time tax charge, reported net income for the third
quarters of 2016 and 2015 was $1.2 million, or $0.07 per diluted common
share, and $15.9 million, or $0.93 per diluted common share,
respectively. Pro forma net income for the third quarter of 2016 was
$10.0 million, or $0.55 per diluted common share, compared to pro forma
net income for the third quarter of 2015 of $11.6 million, or $0.67 per
diluted common share. The pro forma results for the third quarters of
2016 and 2015 utilize a combined pro forma federal and state effective
tax rate of 37.22% and 30.90%, respectively.
During the third quarters of 2016 and 2015, the Company recorded certain
income and expense items which it considers non-core items as follows:
- $2.4 million pre-tax impairment of mortgage-servicing rights during
the third quarter of 2016;
- $1.6 million pre-tax gain from the sale of other real estate owned for
the third quarter of 2016 compared to a loss of $105 thousand for the
third quarter of 2015;
- $416 thousand pre-tax gain on sale of securities during the third
quarter of 2016 compared to $47 thousand for the third quarter of 2015;
- $7 thousand gain on sale of other assets during the third quarter of
2016 compared to $5 thousand for the third quarter of 2015;
- $3.0 million pre-tax compensation related charges in connection with
the IPO for the third quarter of 2016;
- $1.1 million pre-tax merger and conversion-related expenses for the
third quarter of 2016 compared to a $291 thousand expense for the
third quarter of 2015; and
- $2.8 million non-taxable bargain purchase gain was booked for the
third quarter of 2015, with no such gain for the third quarter of 2016.
Excluding the above pre-tax, non-core items totaling $8.6 million and
one-time tax charge from net income, pro forma core net income was $12.8
million, or $0.70 per diluted common share, for the third quarter of
2016, compared to $10.0 million, or $0.58 per diluted common share for
the third quarter of 2015.
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| | | | |
| Reported Results |
| | |
| Pro Forma Results |
| | |
| Pro Forma Core Results* |
|
| | | | |
| For the three months ended September 30 |
|
|
(unaudited)
| | | |
| 2016 |
| | |
| 2015 |
| | |
| 2016 |
| | |
| 2015 |
| | |
| 2016 |
| | |
| 2015 |
|
| Results of operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net income
| | | | |
$
|
1,207
| | | | | |
$
|
15,905
| | | | | |
$
|
10,033
| | | | | |
$
|
11,583
| | | | | |
$
|
12,801
| | | | | |
$
|
10,042
| | |
|
Diluted earnings per share (EPS)
| | | | |
$
|
0.07
| | | | | |
$
|
0.93
| | | | | |
$
|
0.55
| | | | | |
$
|
0.67
| | | | | |
$
|
0.70
| | | | | |
$
|
0.58
| | |
|
Total Revenue
| | | | |
$
|
71,579
| | | | | |
$
|
51,183
| | | | | |
$
|
71,579
| | | | | |
$
|
51,183
| | | | | |
$
|
69,510
| | | | | |
$
|
48,442
| | |
|
Return on average assets (ROAA)
| | | | | |
0.16
|
%
| | | | | |
2.41
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%
| | | | | |
1.32
|
%
| | | | | |
1.74
|
%
| | | | | |
1.69
|
%
| | | | | |
1.49
|
%
| |
|
Return on average equity (ROAE)
| | | | | |
1.74
|
%
| | | | | |
27.84
|
%
| | | | | |
14.43
|
%
| | | | | |
20.05
|
%
| | | | | |
18.42
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%
| | | | | |
17.19
|
%
| |
|
Return on average tangible common equity (ROTCE)
|
|
|
|
|
|
2.14
|
%
|
|
|
|
|
|
34.96
|
%
|
|
|
|
|
|
17.79
|
%
|
|
|
|
|
|
25.46
|
%
|
|
|
|
|
|
22.70
|
%
|
|
|
|
|
|
22.07
|
%
|
|
| Key metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Interest Margin (tax equivalent basis)
| | | | | |
4.05
|
%
| | | | | |
3.95
|
%
| | | | | | | | | | | | | | | | | | | | | |
|
Efficiency Ratio*
| | | | | |
69.96
|
%
| | | | | |
72.11
|
%
| | | | | | | | | | | | | | | | | | | | | |
|
Total nonperforming assets as a percentage of total assets
| | | | | |
0.68
|
%
| | | | | |
0.97
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%
| | | | | | | | | | | | | | | | | | | | | |
|
Allowance for loan losses as a percentage of loans held for
investment
| | | | | |
1.30
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%
| | | | | |
1.65
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%
| | | | | | | | | | | | | | | | | | | | | |
|
Total Loans / Deposits
|
|
|
|
|
|
86.36
|
%
|
|
|
|
|
|
85.12
|
%
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
*These measures are considered non-GAAP financial measures. See
“GAAP Reconciliation and Use of Non-GAAP financial measures” and the
corresponding financial tables below for a reconciliation and
discussion of these non-GAAP measures.
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“As a result of our strong revenue growth and increased operating
efficiencies, our pro forma core net income was $12.8 million for the
third quarter, an increase of 27% from the third quarter of 2015,”
Holmes said.
Customer-Focused Balance Sheet Drives Strong
Net Interest Income and NIM
Loans held for investment at September 30, 2016, were $1.79 billion, an
increase of $43.0 million, or 10.0% annualized, from June 30, 2016. This
compares to an increase of $142.7 million, or 8.7%, from September 30,
2015.
Total deposits were $2.64 billion at September 30, 2016, compared to
$2.28 billion at September 30, 2015, reflecting an annual growth rate of
16.0%, and were up an annualized 20.0% from the second quarter of 2016.
Average deposit balances were $2.58 billion for the third quarter of
2016, an increase of $72.0 million, or 11.4% annualized, from the second
quarter of 2016 of $2.50 billion and an increase of $453.6 million, or
21.4%, from the third quarter of 2015 of $2.12 billion. Average
noninterest bearing deposit balances increased to $738.3 million at
September 30, 2016, from $668.3 million at June 30, 2016, and $546.7
million at September 30, 2015. Cost of total deposits was 0.30% for the
third quarter of 2016, compared to 0.30% for the third quarter of 2015.
Loans held for sale, generated by our mortgage operations, were $486.6
million at September 30, 2016, compared to $322.2 million and $286.6
million at June 30, 2016, and September 30, 2015, respectively. Average
loans held for sale for the third quarter of 2016 were $409.7 million
compared to $276.9 million and $266.6 million for the second quarter of
2016 and third quarter of 2015, respectively.
Our NIM increased to 4.05% for the third quarter of 2016, compared to
3.95% for the third quarter of 2015. Accretion related to acquired loans
contributed 19 basis points to our NIM for the third quarter of 2016.
The results for the third quarter of 2015 did not include any such
accretion. Net interest income was $27.6 million for the third quarter
of 2016, compared to $28.4 million for the second quarter of 2016 and
$24.1 million for the third quarter 2015, an increase of 14.4%. There
were no loan syndication fees in the third quarter of 2016, compared to
$825 thousand and $375 thousand in the second quarter of 2016 and third
quarter of 2015, respectively.
“Our continued focus on building customer relationships enabled another
strong quarterly margin result,” Holmes said. “Noninterest bearing
deposits currently represent 27.5% of total deposits, a major driver of
our 30 basis points total cost of deposits,” Holmes continued.
“Additionally, based upon our operating model, our Metropolitan markets
showed strong double-digit loan and deposit growth while our Community
markets remained stable,” Holmes said.
Scalable Mortgage Operations Drive Noninterest
Income Growth
Noninterest income rose 62.5% to $44.0 million for the third quarter of
2016, compared to $27.0 million for the same period in 2015.
Mortgage banking revenues were up 86.6% to $36.9 million for the third
quarter of 2016, compared to $19.8 million for the same period in 2015.
Net gains from mortgage originations and sales increased 77.5% to $33.3
million for the third quarter of 2016, compared to $18.7 million for the
same period in 2015. Originations rose 72.8% to $1.36 billion in
mortgage loans during the quarter compared to $787 million in the same
period in 2015. Mortgage servicing revenue was up 248.7% to $3.7 million
for the third quarter of 2016, compared to $1.1 million for the same
period in 2015.
Wilburn J. (“Wib”) Evans, President of FB Ventures, stated, “FirstBank
Mortgage set new records this quarter for total revenue and
originations, demonstrating that the Company’s strategy of building a
balanced and diverse set of mortgage origination channels continues to
generate strong returns on our investment. We expect origination volume
strength to continue into the fourth quarter but potentially be offset
by the historical fourth quarter seasonality and increasing mortgage
rate environment.”
Leverage of Noninterest Expense Base Improves
Overall Efficiency
Noninterest expense was $55.5 million for the third quarter of 2016
compared to $35.6 million for the third quarter of 2015. Excluding the
non-core items discussed above, core noninterest expense was $49.0
million for the third quarter of 2016 compared to $35.3 million for the
third quarter of 2015. The primary drivers of the increase in
noninterest expense were the impact of increased mortgage origination
volumes and the acquisition of Northwest Georgia Bank in September 2015.
Our core efficiency ratio, which excludes the non-core items discussed
above, was 70.0% for the third quarter of 2016 compared to 72.1% for the
third quarter of 2015. Our Banking Segment efficiency ratio was 65.7%
for the third quarter of 2016, compared to 63.4% for the third quarter
of 2015, while our Mortgage Segment core efficiency ratio was 76.3% and
93.5%, respectively, for the same periods.
“We continue to improve our overall core efficiency, with our revenue
growth creating operating leverage together with efficiency gains from
the successful integration of Northwest Georgia Bank and the recently
completed conversion of our core operating system,” commented James R.
Gordon, Chief Financial Officer.
Improving Asset Quality
Asset quality improved in the latest quarter as nonperforming assets
declined to $21.6 million, or 0.68% of total assets, at September 30,
2016, from $27.8 million, or 0.97%, at September 30, 2015.
The allowance for loan losses equaled 1.30% of loans HFI at September
30, 2016, compared to 1.36% at June 30, 2016, and 1.65% at September 30,
2015. Net charge-offs were $515 thousand, or 0.12% annualized as a
percentage of average loans HFI for the third quarter of 2016, compared
to net recoveries of $92 thousand, or 0.02% for the second quarter of
2016, and to net charge-offs as an annualized percentage of average
loans HFI of 0.17% for the third quarter of 2015.
The provision for loan losses was $71 thousand for the third quarter of
2016 compared to reversals of $789 thousand and $1.2 million for the
second quarter of 2016 and the third quarter of 2015, respectively.
“Overall, we continue to see our credit metrics improve, reflective of
our team, markets and overall economic cycle,” commented Gordon.
Successful IPO Improves Capital Strength
With the addition of the remaining net proceeds from our initial public
offering of $55.5 million, after deducting applicable expenses and the
use of proceeds therefrom, the Company ended the quarter with a
shareholders’ equity to assets ratio and a tangible equity to tangible
assets ratio of 10.33% and 8.84%, respectively, and a book value per
common share and tangible book value per common share of $13.73 and
$11.56, respectively, providing for future growth and opportunities.
This compared to 8.16% and 6.43% and $13.78 and $10.66, respectively, at
December 31, 2015. Our common equity tier one ratio improved to 11.17%
at September 30, 2016, from 8.23% at December 31, 2015.
“We are pleased with another strong quarter of execution of our business
model and are looking forward to continued growth and refinement of our
strategic objectives going forward, with particular focus on driving and
delivering shareholder value,” Holmes concluded.
WEBCAST AND CONFERENCE CALL INFORMATION
The live broadcast of FB Financial Corporation’s conference call will
begin at 8:00 a.m. CST on Friday, October 28, 2016 and the earnings
conference call will be broadcast live over the Internet at http://services.choruscall.com/links/fbk161028OTXVTmHp.html.
A 30-day online replay will be available approximately an hour following
the conclusion of the live broadcast. Additionally, the Company has
posted a Presentation of Third Quarter 2016 Results on its website,
which can be found on the Company’s website at https://investors.firstbankonline.com/.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a bank holding company
headquartered in Nashville, Tennessee. FB Financial operates through its
wholly owned banking subsidiary, FirstBank, the third largest
Tennessee-headquartered bank, with 45 full-service bank branches across
Tennessee, North Alabama and North Georgia, and a national mortgage
business with offices across the Southeast. FirstBank serves five of the
largest metropolitan markets in Tennessee and has over $3 billion in
total assets.
CORRESPONDING FINANCIAL TABLES AND INFORMATION
Investors are encouraged to review the foregoing summary and discussion
of the Company’s earnings and financial condition in conjunction with
the detailed financial tables and information which the Company has also
included in the earnings release and in its forthcoming Form 10-Q. This
information is also included in a current report on Form 8-K furnished
to the U.S. Securities and Exchange Commission (SEC) today.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part
of this release. A detailed discussion of the business segment results
will be included in the Company’s forthcoming Form 10-Q. Additionally,
investors should review the segment information included in our
Registration Statement on Form S-1 filed with the SEC on August 19, 2016
and as amended.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking statements” made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. All statements other than statements of historical fact are
forward-looking statements. You can identify these forward-looking
statements through the Company’s use of words such as “believes,”
“anticipates,” “expects,” “may,” “will,” “assumes,” “should,”
“predicts,” “could,” “would,” “intends,” “targets,” “estimates,”
“projects,” “plans,” “potential” and other similar words and expressions
of the future or otherwise regarding the outlook for the Company’s
future business and financial performance and/or the performance of the
banking industry and economy in general. Investors are cautioned that
any such forward-looking statements are not guarantees of future
performance and involve known and unknown risks and uncertainties which
may cause the actual results, performance or achievements of the Company
to be materially different from the future results, performance or
achievements expressed or implied by such forward-looking statements.
Forward-looking statements are based on the information known to, and
current beliefs and expectations of, the Company’s management and are
subject to significant risks and uncertainties. Actual results may
differ materially from those contemplated by such forward-looking
statements. A number of factors could cause actual results to differ
materially from those contemplated by the forward-looking statements in
this news release including, without limitation, the risks and other
factors set forth in the Company’s final prospectus filed pursuant to
Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with
the SEC on September 19, 2016 (Registration No. 333-213210) under the
captions “Cautionary note regarding forward-looking statements” and
“Risk factors.” Many of these factors are beyond the Company’s ability
to control or predict. The Company believes the forward-looking
statements contained herein are reasonable; however, undue reliance
should not be placed on any forward-looking statements, which are based
on current expectations and speak only as of the date that they are
made. The Company does not assume any obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise, except as otherwise may be required by law.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This news release contains certain financial measures that are not
measures recognized under U.S. generally accepted accounting principles
(GAAP) and therefore are considered non-GAAP financial measures. These
non-GAAP financial measures include, without limitation, net income,
diluted earnings per share, total revenues, return on average assets,
return on average equity, return on average tangible common equity,
noninterest expense and efficiency ratio, in each case excluding certain
income and expense items that the Company’s management considers to be
non-core in nature. The Company refers to these non-GAAP measures as
core measures. This news release also uses tangible book value per
common share and the tangible common equity to tangible assets ratio,
which are non-GAAP measures that exclude the impact of goodwill and
other intangibles. The Company’s management uses these non-GAAP
financial measures in their analysis of the Company’s performance,
financial condition and the efficiency of its operations. Management
believes that these non-GAAP financial measures provide a greater
understanding of ongoing operations and enhance comparability of results
with prior periods as well as demonstrating the effects of significant
non-core gains and charges in the current period. The Company’s
management also believes that investors find these non-GAAP financial
measures useful. In addition, because intangible assets such as goodwill
and other intangibles, and the other items excluded each vary
extensively from company to company, the Company believes that the
presentation of this information allows investors to more easily compare
the Company’s results to the results of other companies. However, the
non-GAAP financial measures discussed herein should not be considered in
isolation or as a substitute for the most directly comparable or other
financial measures calculated in accordance with GAAP. Moreover, the
manner in which we calculate the non-GAAP financial measures discussed
herein may differ from that of other companies reporting measures with
similar names. You should understand how such other banking
organizations calculate their financial measures similar or with names
similar to the non-GAAP financial measures we have discussed herein when
comparing such non-GAAP financial measures. The following tables provide
a reconciliation of these measures to the most directly comparable GAAP
financial measures.
|
Financial Summary and Key Metrics |
(Unaudited) |
(In Thousands, Except Share Data)
|
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|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
|
|
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
| Statement of Income Data | | | | | | | | | | | | | | | | | | | |
|
Total interest income
| | | |
$
|
30,005
| | | |
$
|
30,732
| | | |
$
|
28,318
| | | | | |
$
|
27,552
| | | |
$
|
26,384
| | |
|
Total interest expense
| | |
|
|
2,388
|
|
|
|
|
2,374
|
|
|
|
|
2,375
|
|
|
|
|
|
|
2,256
|
|
|
|
|
2,249
|
|
|
|
Net interest income
| | | | |
27,617
| | | | |
28,358
| | | | |
25,943
| | | | | | |
25,296
| | | | |
24,135
| | |
|
Provision for loan losses
| | | | |
71
| | | | |
(789
|
)
| | | |
(9
|
)
| | | | | |
(2,127
|
)
| | | |
(1,159
|
)
| |
|
Total noninterest income
| | | | |
43,962
| | | | |
38,356
| | | | |
31,035
| | | | | | |
24,109
| | | | |
27,048
| | |
|
Total noninterest expense
| | |
|
|
55,529
|
|
|
|
|
50,595
|
|
|
|
|
41,347
|
|
|
|
|
|
|
41,880
|
|
|
|
|
35,579
|
|
|
|
Net income before income taxes
| | | | |
15,979
| | | | |
16,908
| | | | |
15,640
| | | | | | |
9,652
| | | | |
16,763
| | |
|
Income tax expense
| | |
|
|
14,772
|
|
|
|
|
1,133
|
|
|
|
|
1,041
|
|
|
|
|
|
|
461
|
|
|
|
|
858
|
|
|
|
Net income
| | |
|
$
|
1,207
|
|
|
|
$
|
15,775
|
|
|
|
$
|
14,599
|
|
|
|
|
|
$
|
9,191
|
|
|
|
$
|
15,905
|
|
|
|
Net interest income (tax—equivalent basis)
| | |
|
$
|
28,213
|
|
|
|
$
|
28,967
|
|
|
|
$
|
26,445
|
|
|
|
|
|
$
|
28,042
|
|
|
|
$
|
24,629
|
|
|
|
Pro forma net income
| | |
|
$
|
10,033
|
|
|
|
$
|
10,576
|
|
|
|
$
|
9,803
|
|
|
|
|
|
$
|
5,935
|
|
|
|
$
|
11,583
|
|
|
|
Pro forma core net income*
| | |
|
$
|
12,801
|
|
|
|
$
|
13,151
|
|
|
|
$
|
9,709
|
|
|
|
|
|
$
|
8,053
|
|
|
|
$
|
10,042
|
|
|
| Per Common Share | | | | | | | | | | | | | | | | | | | |
|
Diluted net income
| | | |
$
|
0.07
| | | |
$
|
0.92
| | | |
$
|
0.85
| | | | | |
$
|
0.53
| | | |
$
|
0.93
| | |
|
Pro forma net income- diluted
| | | |
$
|
0.55
| | | |
$
|
0.62
| | | |
$
|
0.57
| | | | | |
$
|
0.35
| | | |
$
|
0.67
| | |
|
Pro forma core net income- diluted*
| | | |
$
|
0.70
| | | |
$
|
0.77
| | | |
$
|
0.57
| | | | | |
$
|
0.47
| | | |
$
|
0.58
| | |
|
Book value
| | | | |
13.73
| | | | |
15.47
| | | | |
14.74
| | | | | | |
13.78
| | | | |
13.55
| | |
|
Tangible book value
| | | | |
11.56
| | | | |
12.41
| | | | |
11.65
| | | | | | |
10.66
| | | | |
10.42
| | |
|
Weighted average number of shares-diluted
| | | | |
18,332,938
| | | | |
17,180,000
| | | | |
17,180,000
| | | | | | |
17,180,000
| | | | |
17,180,000
| | |
|
Period-end number of shares
|
|
|
|
|
23,975,122
|
|
|
|
|
17,180,000
|
|
|
|
|
17,180,000
|
|
|
|
|
|
|
17,180,000
|
|
|
|
|
17,180,000
|
|
|
| Selected Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
|
Cash and due from banks
| | | |
$
|
51,292
| | | |
$
|
52,122
| | | |
$
|
51,133
| | | | | |
$
|
53,893
| | | |
$
|
49,779
| | |
|
Loans held for investment
| | | | |
1,793,343
| | | | |
1,750,304
| | | | |
1,712,386
| | | | | | |
1,701,863
| | | | |
1,650,644
| | |
|
Allowance for loan losses
| | | | |
(23,290
|
)
| | | |
(23,734
|
)
| | | |
(24,431
|
)
| | | | | |
(24,460
|
)
| | | |
(27,194
|
)
| |
|
Loans held for sale
| | | | |
486,601
| | | | |
322,249
| | | | |
233,110
| | | | | | |
273,196
| | | | |
286,565
| | |
|
Available-for-sale securities, fair value
| | | | |
553,357
| | | | |
550,307
| | | | |
587,377
| | | | | | |
649,387
| | | | |
617,391
| | |
|
Foreclosed real estate, net
| | | | |
8,964
| | | | |
9,902
| | | | |
10,533
| | | | | | |
11,641
| | | | |
11,547
| | |
|
Total assets
| | | | |
3,187,180
| | | | |
2,917,958
| | | | |
2,855,563
| | | | | | |
2,899,420
| | | | |
2,876,340
| | |
|
Total deposits
| | | | |
2,640,072
| | | | |
2,514,297
| | | | |
2,469,133
| | | | | | |
2,438,474
| | | | |
2,275,798
| | |
|
Core deposits*
| | | | |
2,575,797
| | | | |
2,455,298
| | | | |
2,417,089
| | | | | | |
2,386,154
| | | | |
2,225,376
| | |
|
Borrowings
| | | | |
125,291
| | | | |
55,785
| | | | |
56,201
| | | | | | |
74,616
| | | | |
195,993
| | |
|
Total shareholders’ equity
|
|
|
|
|
329,108
|
|
|
|
|
265,768
|
|
|
|
|
253,236
|
|
|
|
|
|
|
236,674
|
|
|
|
|
235,636
|
|
|
| Selected Ratios | | | | | | | | | | | | | | | | | | | |
|
Return on average:
| | | | | | | | | | | | | | | | | | | |
|
Assets
| | | | |
0.16
|
%
| | | |
2.19
|
%
| | | |
2.03
|
%
| | | | | |
1.29
|
%
| | | |
2.41
|
%
| |
|
Shareholders’ equity
| | | | |
1.74
|
%
| | | |
24.42
|
%
| | | |
23.79
|
%
| | | | | |
15.59
|
%
| | | |
27.84
|
%
| |
|
Tangible common equity*
| | | | |
2.14
|
%
| | | |
30.64
|
%
| | | |
30.35
|
%
| | | | | |
20.14
|
%
| | | |
34.96
|
%
| |
|
Pro forma return on average:
| | | | | | | | | | | | | | | | | | | |
|
Assets
| | | | |
1.32
|
%
| | | |
1.47
|
%
| | | |
1.37
|
%
| | | | | |
0.83
|
%
| | | |
1.74
|
%
| |
|
Shareholders’ equity
| | | | |
14.43
|
%
| | | |
16.37
|
%
| | | |
15.97
|
%
| | | | | |
10.09
|
%
| | | |
20.05
|
%
| |
|
Tangible common equity*
| | | | |
17.79
|
%
| | | |
20.55
|
%
| | | |
20.38
|
%
| | | | | |
13.01
|
%
| | | |
25.46
|
%
| |
|
Average shareholders’ equity to average assets
| | | | |
9.17
|
%
| | | |
8.96
|
%
| | | |
8.55
|
%
| | | | | |
8.25
|
%
| | | |
8.67
|
%
| |
|
Net interest margin (tax-equivalent basis)
| | | | |
4.05
|
%
| | | |
4.38
|
%
| | | |
4.05
|
%
| | | | | |
3.85
|
%
| | | |
3.95
|
%
| |
|
Efficiency ratio (tax-equivalent basis)*
| | | | |
69.96
|
%
| | | |
67.95
|
%
| | | |
71.43
|
%
| | | | | |
77.16
|
%
| | | |
72.11
|
%
| |
|
Loans held for investment to deposit ratio
| | | | |
67.93
|
%
| | | |
69.61
|
%
| | | |
69.35
|
%
| | | | | |
69.79
|
%
| | | |
72.53
|
%
| |
|
Total loan to deposit ratio
| | | | |
86.36
|
%
| | | |
82.43
|
%
| | | |
78.79
|
%
| | | | | |
81.00
|
%
| | | |
85.12
|
%
| |
|
Yield on interest-earning assets
| | | | |
4.40
|
%
| | | |
4.74
|
%
| | | |
4.40
|
%
| | | | | |
4.24
|
%
| | | |
4.31
|
%
| |
|
Cost of interest-bearing liabilities
| | | | |
0.48
|
%
| | | |
0.49
|
%
| | | |
0.48
|
%
| | | | | |
0.46
|
%
| | | |
0.48
|
%
| |
|
Cost of total deposits
|
|
|
|
|
0.30
|
%
|
|
|
|
0.28
|
%
|
|
|
|
0.29
|
%
|
|
|
|
|
|
0.28
|
%
|
|
|
|
0.30
|
%
|
|
| Credit Quality Ratios | | | | | | | | | | | | | | | | | | | |
|
Allowance for loan losses as a percentage of loans held for
investment
| | | | |
1.30
|
%
| | | |
1.36
|
%
| | | |
1.43
|
%
| | | | | |
1.44
|
%
| | | |
1.65
|
%
| |
|
Net (charge-off’s) recoveries as a percentage of average total
loans held for investment
| | | | |
(0.12
|
)%
| | | |
0.02
|
%
| | | |
(0.00
|
)%
| | | | | |
(0.14
|
)%
| | | |
(0.17
|
)%
| |
|
Nonperforming assets as a percentage of total assets
|
|
|
|
|
0.68
|
%
|
|
|
|
0.78
|
%
|
|
|
|
0.83
|
%
|
|
|
|
|
|
0.86
|
%
|
|
|
|
0.97
|
%
|
|
| Preliminary capital Ratios (Consolidated) | | | | | | |
`
| | | | | | | | | | | | |
|
Shareholders’ equity to assets
| | | | |
10.33
|
%
| | | |
9.11
|
%
| | | |
8.87
|
%
| | | | | |
8.16
|
%
| | | |
8.19
|
%
| |
|
Tangible common equity to tangible assets*
| | | | |
8.84
|
%
| | | |
7.44
|
%
| | | |
7.14
|
%
| | | | | |
6.43
|
%
| | | |
6.43
|
%
| |
|
Tier 1 capital (to average assets)
| | | | |
10.32
|
%
| | | |
7.98
|
%
| | | |
7.81
|
%
| | | | | |
7.64
|
%
| | | |
8.08
|
%
| |
|
Tier 1 capital (to risk-weighted assets
| | | | |
12.39
|
%
| | | |
9.57
|
%
| | | |
9.68
|
%
| | | | | |
9.58
|
%
| | | |
9.47
|
%
| |
|
Total capital (to risk-weighted assets)
| | | | |
13.33
|
%
| | | |
11.00
|
%
| | | |
11.21
|
%
| | | | | |
11.15
|
%
| | | |
11.19
|
%
| |
|
Common Equity Tier 1 (to risk-weighted assets) (CET1)
|
|
|
|
|
11.17
|
%
|
|
|
|
8.30
|
%
|
|
|
|
8.35
|
%
|
|
|
|
|
|
8.23
|
%
|
|
|
|
8.08
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
*These measures are considered non-GAAP financial measures. See
“GAAP Reconciliation and Use of Non-GAAP financial measures” and the
corresponding financial tables below for a reconciliation and
discussion of these non-GAAP measures.
| |
| |
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
|
| | |
Consolidated Statements of Income |
(Unaudited) |
(In Thousands, Except Share Data)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | Q3 2016 | | | Q3 2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | - | | | - | |
| | | |
| 2016 |
| | |
| 2015 |
| | | | Q2 2016 | | | Q3 2015 | |
|
|
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
| | |
| Percent variance |
|
| Percent variance |
|
|
Interest income:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest and fees on loans
| | | |
$
|
26,550
| | |
$
|
26,878
| | | |
$
|
24,312
| | | | | |
$
|
23,620
| | | |
$
|
22,800
| | | | | |
-1.22
|
%
| | |
16.45
|
%
| |
|
Interest on securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Taxable
| | | | |
2,402
| | | |
2,849
| | | | |
3,045
| | | | | | |
3,108
| | | | |
2,793
| | | | | |
-15.69
|
%
| | |
-14.00
|
%
| |
|
Tax-exempt
| | | | |
875
| | | |
845
| | | | |
705
| | | | | | |
685
| | | | |
685
| | | | | |
3.55
|
%
| | |
27.74
|
%
| |
|
Other
| | |
|
|
178
|
|
|
|
108
|
|
|
|
|
180
|
|
| | |
|
|
139
|
|
|
|
|
106
|
|
| | | |
64.81
|
%
| | |
67.92
|
%
| |
|
Total interest income
| | |
|
|
30,005
|
|
|
|
30,680
|
|
|
|
|
28,242
|
|
| | |
|
|
27,552
|
|
|
|
|
26,384
|
|
| | | |
-2.20
|
%
| | |
13.72
|
%
| |
|
Interest expense:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deposits
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Demand and savings accounts
| | | | |
1,340
| | | |
1,289
| | | | |
1,397
| | | | | | |
1,318
| | | | |
1,197
| | | | | |
3.96
|
%
| | |
11.95
|
%
| |
|
Time deposits
| | | | |
575
| | | |
441
| | | | |
362
| | | | | | |
306
| | | | |
364
| | | | | |
30.39
|
%
| | |
57.97
|
%
| |
|
Short-term borrowings
| | | | |
13
| | | |
29
| | | | |
59
| | | | | | |
169
| | | | |
214
| | | | | |
-55.17
|
%
| | |
-93.93
|
%
| |
|
Long-term debt
| | |
|
|
460
|
|
|
|
563
|
|
|
|
|
481
|
|
| | |
|
|
463
|
|
|
|
|
474
|
|
| | | |
-18.29
|
%
| | |
-2.95
|
%
| |
|
Total interest expense
| | |
|
|
2,388
|
|
|
|
2,322
|
|
|
|
|
2,299
|
|
| | |
|
|
2,256
|
|
|
|
|
2,249
|
|
| | | |
2.84
|
%
| | |
6.18
|
%
| |
|
Net interest income
| | | | |
27,617
| | | |
28,358
| | | | |
25,943
| | | | | | |
25,296
| | | | |
24,135
| | | | | |
-2.61
|
%
| | |
14.43
|
%
| |
|
Provision for loan losses
| | |
|
|
71
|
|
|
|
(789
|
)
|
|
|
|
(9
|
)
|
| | |
|
|
(2,127
|
)
|
|
|
|
(1,159
|
)
|
| | | |
-109.00
|
%
| | |
-106.13
|
%
| |
|
Net interest income after provision for loan losses
| | | | |
27,546
| | | |
29,147
| | | | |
25,952
| | | | | | |
27,423
| | | | |
25,294
| | | | | |
-5.49
|
%
| | |
8.90
|
%
| |
|
Noninterest income:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Mortgage banking income
| | | | |
36,938
| | | |
30,133
| | | | |
24,503
| | | | | | |
19,109
| | | | |
19,794
| | | | | |
22.58
|
%
| | |
86.61
|
%
| |
|
Service charges on deposit accounts
| | | | |
1,870
| | | |
2,276
| | | | |
1,983
| | | | | | |
2,149
| | | | |
1,876
| | | | | |
-17.84
|
%
| | |
-0.32
|
%
| |
|
ATM and interchange fees
| | | | |
1,814
| | | |
1,907
| | | | |
2,035
| | | | | | |
2,026
| | | | |
1,572
| | | | | |
-4.88
|
%
| | |
15.39
|
%
| |
|
Investment services income
| | | | |
857
| | | |
958
| | | | |
693
| | | | | | |
796
| | | | |
800
| | | | | |
-10.54
|
%
| | |
7.13
|
%
| |
|
Bargain purchase gain
| | | | |
-
| | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
2,794
| | | | | |
0.00
|
%
| | |
-100.00
|
%
| |
|
Gain on sale of securities
| | | | |
416
| | | |
2,591
| | | | |
1,400
| | | | | | |
2
| | | | |
47
| | | | | |
-83.94
|
%
| | |
785.11
|
%
| |
|
(Loss) gain on sales or write-downs of foreclosed assets
| | | | |
1,646
| | | |
(131
|
)
| | | |
(11
|
)
| | | | | |
(274
|
)
| | | |
(105
|
)
| | | | |
-1356.49
|
%
| | |
-1667.62
|
%
| |
|
Gain (loss) on other assets
| | | | |
7
| | | |
(123
|
)
| | | |
140
| | | | | | |
(13
|
)
| | | |
5
| | | | | |
-105.69
|
%
| | |
40.00
|
%
| |
|
Other income
| | |
|
|
414
|
|
|
|
745
|
|
|
|
|
292
|
|
| | |
|
|
314
|
|
|
|
|
265
|
|
| | | |
-44.43
|
%
| | |
56.23
|
%
| |
|
Total noninterest income
| | | | |
43,962
| | | |
38,356
| | | | |
31,035
| | | | | | |
24,109
| | | | |
27,048
| | | | | |
14.62
|
%
| | |
62.53
|
%
| |
| Total revenue | | | | | 71,579 | | | | 66,714 | | | | | 56,978 | | | | | | | 49,405 | | | | | 51,183 | | | | | |
7.29
|
%
| | |
39.85
|
%
| |
|
Noninterest expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Salaries, commissions and employee benefits
| | | | |
34,010
| | | |
26,688
| | | | |
23,788
| | | | | | |
23,103
| | | | |
22,151
| | | | | |
27.44
|
%
| | |
53.54
|
%
| |
|
Occupancy and equipment expense
| | | | |
3,171
| | | |
3,226
| | | | |
3,170
| | | | | | |
2,885
| | | | |
2,741
| | | | | |
-1.70
|
%
| | |
15.69
|
%
| |
|
Legal and professional fees
| | | | |
816
| | | |
856
| | | | |
1,032
| | | | | | |
961
| | | | |
1,252
| | | | | |
-4.67
|
%
| | |
-34.82
|
%
| |
|
Data processing
| | | | |
1,294
| | | |
669
| | | | |
728
| | | | | | |
533
| | | | |
511
| | | | | |
93.42
|
%
| | |
153.23
|
%
| |
|
Merger and conversion
| | | | |
1,122
| | | |
1,540
| | | | |
606
| | | | | | |
2,965
| | | | |
291
| | | | | |
-27.14
|
%
| | |
285.57
|
%
| |
|
Amortization of core deposit intangibles
| | | | |
526
| | | |
527
| | | | |
552
| | | | | | |
510
| | | | |
415
| | | | | |
-0.19
|
%
| | |
26.75
|
%
| |
|
Amortization of mortgage servicing rights
| | | | |
2,796
| | | |
1,968
| | | | |
1,457
| | | | | | |
1,058
| | | | |
764
| | | | | |
42.07
|
%
| | |
265.97
|
%
| |
|
Impairment of mortgage servicing rights
| | | | |
2,402
| | | |
4,914
| | | | |
773
| | | | | | |
194
| | | | |
-
| | | | | |
-51.12
|
%
| | |
100.00
|
%
| |
|
Regulatory fees and deposit insurance assessments
| | | | |
465
| | | |
529
| | | | |
487
| | | | | | |
725
| | | | |
550
| | | | | |
-12.10
|
%
| | |
-15.45
|
%
| |
|
Software license and maintenance fees
| | | | |
503
| | | |
1,349
| | | | |
509
| | | | | | |
576
| | | | |
559
| | | | | |
-62.71
|
%
| | |
-10.02
|
%
| |
|
Advertising
| | | | |
2,220
| | | |
3,601
| | | | |
2,250
| | | | | | |
2,187
| | | | |
2,305
| | | | | |
-38.35
|
%
| | |
-3.69
|
%
| |
|
Other expense
| | |
|
|
6,204
|
|
|
|
4,728
|
|
|
|
|
5,995
|
|
| | |
|
|
6,183
|
|
|
|
|
4,040
|
|
| | | |
31.22
|
%
| | |
53.56
|
%
| |
|
Total noninterest expense
| | |
|
|
55,529
|
|
|
|
50,595
|
|
|
|
|
41,347
|
|
| | |
|
|
41,880
|
|
|
|
|
35,579
|
|
| | | |
9.75
|
%
| | |
56.07
|
%
| |
|
Net income before income taxes
| | | | |
15,979
| | | |
16,908
| | | | |
15,640
| | | | | | |
9,652
| | | | |
16,763
| | | | | |
-5.49
|
%
| | |
-4.68
|
%
| |
|
Income tax expense
| | |
|
|
14,772
|
|
|
|
1,133
|
|
|
|
|
1,041
|
|
| | |
|
|
461
|
|
|
|
|
858
|
|
| | | |
1203.80
|
%
| | |
1621.68
|
%
| |
|
Net income
| | |
|
$
|
1,207
|
|
|
$
|
15,775
|
|
|
|
$
|
14,599
|
|
| | |
|
$
|
9,191
|
|
|
|
$
|
15,905
|
|
| | | |
-92.35
|
%
| | |
-92.41
|
%
| |
|
Weighted average common shares outstanding:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
| | | | |
18,259,128
| | | |
17,180,000
| | | | |
17,180,000
| | | | | | |
17,180,000
| | | | |
17,180,000
| | | | | |
6.28
|
%
| | |
6.28
|
%
| |
|
Fully diluted
| | | | |
18,332,938
| | | |
17,180,000
| | | | |
17,180,000
| | | | | | |
17,180,000
| | | | |
17,180,000
| | | | | |
6.71
|
%
| | |
6.71
|
%
| |
|
Earnings per share
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
| | | |
$
|
0.07
| | |
$
|
0.92
| | | |
$
|
0.85
| | | | | |
$
|
0.53
| | | |
$
|
0.93
| | | | | |
-92.80
|
%
| | |
-92.86
|
%
| |
|
Fully diluted
| | | |
$
|
0.07
| | |
$
|
0.92
| | | |
$
|
0.85
| | | | | |
$
|
0.53
| | | |
$
|
0.93
| | | | | |
-92.83
|
%
| | |
-92.89
|
%
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Pro Forma:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Income tax expense
| | | |
$
|
5,946
| | |
$
|
6,332
| | | |
$
|
5,837
| | | | | |
$
|
3,717
| | | |
$
|
5,180
| | | | | | | | | | |
|
Net income
| | | |
$
|
10,033
| | |
$
|
10,576
| | | |
$
|
9,803
| | | | | |
$
|
5,935
| | | |
$
|
11,583
| | | | | | | | | | |
|
Earnings per share
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
| | | |
$
|
0.55
| | |
$
|
0.62
| | | |
$
|
0.57
| | | | | |
$
|
0.35
| | | |
$
|
0.67
| | | | | | | | | | |
|
Fully diluted
| | | |
$
|
0.55
| | |
$
|
0.62
| | | |
$
|
0.57
| | | | | |
$
|
0.35
| | | |
$
|
0.67
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Consolidated Statements of Income |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
|
|
| | |
| | | | | For the nine months ended | | | | | | |
| | | |
| September 30 |
|
|
|
|
|
| 2016 |
|
| 2015 |
| | |
| Percent variance |
|
|
Interest income:
| | | | | | | | | | | | | |
|
Interest and fees on loans
| | | |
$
|
77,740
| | | |
$
|
64,103
| | | | | |
21.27
|
%
| |
|
Interest on securities
| | | | | | | | | | | | | |
|
Taxable
| | | | |
8,296
| | | | |
8,675
| | | | | |
-4.37
|
%
| |
|
Tax-exempt
| | | | |
2,425
| | | | |
2,123
| | | | | |
14.23
|
%
| |
|
Other
| | |
|
|
466
|
|
|
|
|
329
|
|
| | | |
41.64
|
%
| |
|
Total interest income
| | |
|
|
88,927
|
|
|
|
|
75,230
|
|
| | | |
18.21
|
%
| |
|
Interest expense:
| | | | | | | | | | | | | |
|
Deposits
| | | | | | | | | | | | | |
|
Demand and savings accounts
| | | | |
4,026
| | | | |
3,415
| | | | | |
17.89
|
%
| |
|
Time deposits
| | | | |
1,378
| | | | |
1,253
| | | | | |
9.98
|
%
| |
|
Short-term borrowings
| | | | |
101
| | | | |
543
| | | | | |
-81.40
|
%
| |
|
Long-term debt
| | |
|
|
1,504
|
|
|
|
|
1,443
|
|
| | | |
4.23
|
%
| |
|
Total interest expense
| | |
|
|
7,009
|
|
|
|
|
6,654
|
|
| | | |
5.34
|
%
| |
|
Net interest income
| | | | |
81,918
| | | | |
68,576
| | | | | |
19.46
|
%
| |
|
Provision for loan losses
| | |
|
|
(727
|
)
|
|
|
|
(937
|
)
|
| | | |
-22.41
|
%
| |
|
Net interest income after provision for loan losses
| | | | |
82,645
| | | | |
69,513
| | | | | |
18.89
|
%
| |
|
Noninterest income:
| | | | | | | | | | | | | |
|
Mortgage banking income
| | | | |
91,574
| | | | |
51,081
| | | | | |
79.27
|
%
| |
|
Bargain purchase gain
| | | | |
-
| | | | |
2,794
| | | | | |
-100.00
|
%
| |
|
Service charges on deposit accounts
| | | | |
6,129
| | | | |
5,240
| | | | | |
16.97
|
%
| |
|
ATM and interchange fees
| | | | |
5,756
| | | | |
4,510
| | | | | |
27.63
|
%
| |
|
Investment services income
| | | | |
2,508
| | | | |
2,464
| | | | | |
1.79
|
%
| |
|
Gain on sale of securities
| | | | |
4,407
| | | | |
1,842
| | | | | |
139.25
|
%
| |
|
(Loss) gain on sales or write-downs of foreclosed assets
| | | | |
1,504
| | | | |
(43
|
)
| | | | |
-3597.67
|
%
| |
|
Gain (loss) on other assets
| | | | |
24
| | | | |
(380
|
)
| | | | |
-106.32
|
%
| |
|
Other income
| | |
|
|
1,451
|
|
|
|
|
763
|
|
| | | |
90.17
|
%
| |
|
Total noninterest income
| | | | |
113,353
| | | | |
68,271
| | | | | |
66.03
|
%
| |
|
Noninterest expenses:
| | | | | | | | | | | | | |
|
Salaries, commissions and employee benefits
| | | | |
84,486
| | | | |
61,111
| | | | | |
38.25
|
%
| |
|
Occupancy and equipment expense
| | | | |
9,567
| | | | |
7,892
| | | | | |
21.22
|
%
| |
|
Legal and professional fees
| | | | |
2,704
| | | | |
2,394
| | | | | |
12.95
|
%
| |
|
Data processing
| | | | |
2,691
| | | | |
1,520
| | | | | |
77.04
|
%
| |
|
Merger and conversion
| | | | |
3,268
| | | | |
578
| | | | | |
465.40
|
%
| |
|
Amortization of core deposit intangibles
| | | | |
1,605
| | | | |
1,221
| | | | | |
31.45
|
%
| |
|
Amortization of mortgage servicing rights
| | | | |
6,221
| | | | |
1,917
| | | | | |
224.52
|
%
| |
|
Impairment of mortgage servicing rights
| | | | |
8,089
| | | | |
-
| | | | | |
100.00
|
%
| |
|
Regulatory fees and deposit insurance assessments
| | | | |
1,481
| | | | |
1,465
| | | | | |
1.09
|
%
| |
|
Software license and maintenance fees
| | | | |
2,361
| | | | |
1,410
| | | | | |
67.45
|
%
| |
|
Advertising
| | | | |
8,071
| | | | |
5,875
| | | | | |
37.38
|
%
| |
|
Other expense
| | |
|
|
16,927
|
|
|
|
|
11,229
|
|
| | | |
50.74
|
%
| |
|
Total noninterest expense
| | |
|
|
147,471
|
|
|
|
|
96,612
|
|
| | | |
52.64
|
%
| |
|
Net income before income taxes
| | | | |
48,527
| | | | |
41,172
| | | | | |
17.86
|
%
| |
|
Income tax expense
| | |
|
|
16,946
|
|
|
|
|
2,507
|
|
| | | |
575.95
|
%
| |
|
Net income
| | |
|
$
|
31,581
|
|
|
|
$
|
38,665
|
|
| | | |
-18.32
|
%
| |
|
Weighted average common shares outstanding:
| | | | | | | | | | | | | |
|
Basic
| | | | |
17,542,335
| | | | |
17,180,000
| | | | | | | |
|
Fully diluted
| | | | |
17,567,118
| | | | |
17,180,000
| | | | | | | |
|
Earnings per share
| | | | | | | | | | | | | |
|
Basic
| | | |
$
|
1.80
| | | |
$
|
2.25
| | | | | | | |
|
Fully diluted
| | | |
$
|
1.80
| | | |
$
|
2.25
| | | | | | | |
| | | | | | | | | | | | | |
|
|
Pro Forma:
| | | | | | | | | | | | | |
|
Income tax expense
| | | | |
18,115
| | | | |
14,143
| | | | | | | |
|
Net income
| | | | |
30,412
| | | | |
27,029
| | | | | | | |
|
Earnings per share
| | | | | | | | | | | | | |
|
Basic
| | | |
$
|
1.73
| | | |
$
|
1.57
| | | | | | | |
|
Fully diluted
| | | |
$
|
1.73
| | | |
$
|
1.57
| | | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Consolidated Balance Sheets |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
|
| | |
| | | | | | | | | | | | | | | | | | | | | | | | Q3 2016 | | | Q3 2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | - | | | - | |
| | | |
| 2016 |
| | |
| 2015 |
| | | | Q2 2016 | | | Q3 2015 | |
|
|
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
| | |
| Percent variance |
|
| Percent variance |
|
| ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Cash and due from banks
| | | |
$
|
51,292
| | |
$
|
52,122
| | |
$
|
51,133
| | | | |
$
|
53,893
| | |
$
|
49,779
| | | | |
-1.59
|
%
| | |
3.04
|
%
| |
|
Federal funds sold
| | | | |
8,848
| | | |
13,415
| | | |
11,662
| | | | | |
21,628
| | | |
12,900
| | | | |
-34.04
|
%
| | |
-31.41
|
%
| |
|
Interest bearing deposits in financial institutions
| | |
|
|
57,157
|
|
|
|
23,382
|
|
|
|
51,766
|
| | |
|
|
22,202
|
|
|
|
14,044
|
| | | |
144.45
|
%
| | |
306.99
|
%
| |
|
Cash and cash equivalents
| | | | |
117,297
| | | |
88,919
| | | |
114,561
| | | | | |
97,723
| | | |
76,723
| | | | |
31.91
|
%
| | |
52.88
|
%
| |
|
Investments:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Available-for-sale securities, at fair value
| | | | |
553,357
| | | |
550,307
| | | |
587,377
| | | | | |
649,387
| | | |
617,391
| | | | |
0.55
|
%
| | |
-10.37
|
%
| |
| Federal Home Loan Bank stock, at cost
| | | | |
6,528
| | | |
6,528
| | | |
6,528
| | | | | |
6,528
| | | |
6,782
| | | | |
0.00
|
%
| | |
-3.75
|
%
| |
|
Loans held for sale, at fair value
| | | | |
486,601
| | | |
322,249
| | | |
233,110
| | | | | |
273,196
| | | |
286,565
| | | | |
51.00
|
%
| | |
69.80
|
%
| |
|
Loans
| | | | |
1,793,343
| | | |
1,750,304
| | | |
1,712,386
| | | | | |
1,701,863
| | | |
1,650,644
| | | | |
2.46
|
%
| | |
8.65
|
%
| |
|
Less: allowance for loan losses
| | |
|
|
23,290
|
|
|
|
23,734
|
|
|
|
24,431
|
| | |
|
|
24,460
|
|
|
|
27,194
|
| | | |
-1.87
|
%
| | |
-14.36
|
%
| |
|
Net loans
| | | | |
1,770,053
| | | |
1,726,570
| | | |
1,687,955
| | | | | |
1,677,403
| | | |
1,623,450
| | | | |
2.52
|
%
| | |
9.03
|
%
| |
|
Premises and equipment, net
| | | | |
65,882
| | | |
65,686
| | | |
66,530
| | | | | |
65,892
| | | |
63,828
| | | | |
0.30
|
%
| | |
3.22
|
%
| |
|
Foreclosed real estate, net
| | | | |
8,964
| | | |
9,902
| | | |
10,533
| | | | | |
11,641
| | | |
11,547
| | | | |
-9.47
|
%
| | |
-22.37
|
%
| |
|
Interest receivable
| | | | |
7,040
| | | |
6,627
| | | |
7,293
| | | | | |
6,763
| | | |
7,440
| | | | |
6.23
|
%
| | |
-5.38
|
%
| |
|
Mortgage servicing rights, net
| | | | |
46,291
| | | |
40,382
| | | |
36,611
| | | | | |
29,711
| | | |
22,881
| | | | |
14.63
|
%
| | |
102.31
|
%
| |
| Goodwill | | | | |
46,867
| | | |
46,867
| | | |
46,867
| | | | | |
46,904
| | | |
46,904
| | | | |
0.00
|
%
| | |
-0.08
|
%
| |
|
Core deposit intangible, net
| | | | |
5,089
| | | |
5,616
| | | |
6,143
| | | | | |
6,695
| | | |
7,205
| | | | |
-9.38
|
%
| | |
-29.37
|
%
| |
|
Other assets
| | |
|
|
73,211
|
|
|
|
48,305
|
|
|
|
52,055
|
| | |
|
|
27,577
|
|
|
|
105,624
|
| | | |
51.56
|
%
| | |
-30.69
|
%
| |
|
Total assets
| | |
|
$
|
3,187,180
|
|
|
$
|
2,917,958
|
|
|
$
|
2,855,563
|
| | |
|
$
|
2,899,420
|
|
|
$
|
2,876,340
|
| | | |
9.23
|
%
| | |
10.81
|
%
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Demand deposits
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Noninterest-bearing
| | | |
$
|
726,248
| | |
$
|
680,165
| | |
$
|
617,663
| | | | |
$
|
626,955
| | |
$
|
571,592
| | | | |
6.78
|
%
| | |
27.06
|
%
| |
|
Interest-bearing
| | | | |
1,382,981
| | | |
1,304,606
| | | |
1,316,289
| | | | | |
1,273,438
| | | |
1,161,591
| | | | |
6.01
|
%
| | |
19.06
|
%
| |
|
Savings deposits
| | | | |
131,819
| | | |
129,944
| | | |
220,401
| | | | | |
212,522
| | | |
210,620
| | | | |
1.44
|
%
| | |
-37.41
|
%
| |
|
Time deposits
| | |
|
|
399,024
|
|
|
|
399,582
|
|
|
|
314,780
|
| | |
|
|
325,559
|
|
|
|
331,995
|
| | | |
-0.14
|
%
| | |
20.19
|
%
| |
|
Total deposits
| | | | |
2,640,072
| | | |
2,514,297
| | | |
2,469,133
| | | | | |
2,438,474
| | | |
2,275,798
| | | | |
5.00
|
%
| | |
16.01
|
%
| |
|
Securities sold under agreements to repurchase
| | | | |
29,137
| | | |
29,278
| | | |
40,389
| | | | | |
105,133
| | | |
101,096
| | | | |
-0.48
|
%
| | |
-71.18
|
%
| |
|
Short-term borrowings
| | | | |
80,000
| | | |
—
| | | |
—
| | | | | |
18,000
| | | |
138,440
| | | | |
N/A
| | | |
-42.21
|
%
| |
|
Long-term debt
| | | | |
45,291
| | | |
55,785
| | | |
56,201
| | | | | |
56,616
| | | |
57,553
| | | | |
-18.81
|
%
| | |
-21.31
|
%
| |
|
Deferred tax liability
| | | | |
15,456
| | | |
2,215
| | | |
2,002
| | | | | |
522
| | | |
409
| | | | |
597.79
|
%
| | |
3678.97
|
%
| |
|
Accrued expenses and other liabilities
| | |
|
|
48,116
|
|
|
|
50,615
|
|
|
|
34,602
|
| | |
|
|
44,001
|
|
|
|
67,408
|
| | | |
-4.94
|
%
| | |
-28.62
|
%
| |
|
Total liabilities
| | | | |
2,858,072
| | | |
2,652,190
| | | |
2,602,327
| | | | | |
2,662,746
| | | |
2,640,704
| | | | |
7.76
|
%
| | |
8.23
|
%
| |
|
Shareholders’ equity:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Common stock, $1 par value; 25,000,000 shares authorized;
17,180,000 shares issued and outstanding
| | | | |
23,975
| | | |
17,180
| | | |
17,180
| | | | | |
17,180
| | | |
17,180
| | | | |
39.55
|
%
| | |
39.55
|
%
| |
|
Additional paid-in capital
| | | | |
211,765
| | | |
94,544
| | | |
94,544
| | | | | |
94,544
| | | |
94,544
| | | | |
123.99
|
%
| | |
123.99
|
%
| |
|
Retained earnings
| | | | |
84,774
| | | |
143,567
| | | |
132,092
| | | | | |
122,493
| | | |
115,802
| | | | |
-40.95
|
%
| | |
-26.79
|
%
| |
|
Accumulated other comprehensive income, net
| | |
|
|
8,594
|
|
|
|
10,477
|
|
|
|
9,420
|
| | |
|
|
2,457
|
|
|
|
8,110
|
| | | |
-17.97
|
%
| | |
5.97
|
%
| |
|
Total shareholders’ equity
| | |
|
|
329,108
|
|
|
|
265,768
|
|
|
|
253,236
|
| | |
|
|
236,674
|
|
|
|
235,636
|
| | | |
23.83
|
%
| | |
39.67
|
%
| |
|
Total liabilities and shareholders’ equity
|
|
|
|
$
|
3,187,180
|
|
|
$
|
2,917,958
|
|
|
$
|
2,855,563
|
| | |
|
$
|
2,899,420
|
|
|
$
|
2,876,340
|
| | | |
9.23
|
%
| | |
10.81
|
%
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Average Balance, Average Yield Earned and Average Rate Paid |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
| | |
| | | | | Three Months Ended | | | | | Three Months Ended | | | | | Three Months Ended | |
| | | |
| September 30, 2016 |
| | |
| June 30, 2016 |
| | |
| March 31, 2016 |
|
|
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
Interest-earning assets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans(1)
| | | |
$
|
1,750,300
| | | | |
23,633
| | |
5.37
|
%
| | | | | |
1,736,493
| | | | |
24,848
| | |
5.76
|
%
| | | | | |
1,704,973
| | | | |
22,305
| | |
5.26
|
%
| |
|
Loans held for sale
| | | | |
409,736
| | | | |
2,948
| | |
2.86
|
%
| | | | | |
276,943
| | | | |
2,099
| | |
3.05
|
%
| | | | | |
250,355
| | | | |
2,054
| | |
3.30
|
%
| |
|
Securities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Taxable
| | | | |
454,601
| | | | |
2,426
| | |
2.12
|
%
| | | | | |
499,617
| | | | |
2,849
| | |
2.29
|
%
| | | | | |
534,000
| | | | |
3,021
| | |
2.28
|
%
| |
|
Tax-exempt(1)
| | |
|
|
100,947
|
|
|
|
|
1,440
|
|
|
5.67
|
%
|
| | |
|
|
82,368
|
|
|
|
|
1,390
|
|
|
6.79
|
%
|
| | |
|
|
70,561
|
|
|
|
|
1,160
|
|
|
6.61
|
%
|
|
|
Total Securities(1)
| | |
|
|
555,548
|
|
|
|
|
3,866
|
|
|
2.77
|
%
|
| | |
|
|
581,985
|
|
|
|
|
4,239
|
|
|
2.93
|
%
|
| | |
|
|
604,561
|
|
|
|
|
4,181
|
|
|
2.78
|
%
|
|
|
Federal funds sold
| | | | |
14,748
| | | | |
18
| | |
0.49
|
%
| | | | | |
10,745
| | | | |
16
| | |
0.60
|
%
| | | | | |
15,066
| | | | |
15
| | |
0.40
|
%
| |
|
Interest-bearing deposits with other financial institutions
| | | | |
32,262
| | | | |
71
| | |
0.88
|
%
| | | | | |
46,594
| | | | |
50
| | |
0.43
|
%
| | | | | |
46,519
| | | | |
99
| | |
0.86
|
%
| |
|
FHLB stock
| | |
|
|
6,528
|
|
|
|
|
65
|
|
|
3.96
|
%
|
| | |
|
|
6,528
|
|
|
|
|
66
|
|
|
4.07
|
%
|
| | |
|
|
6,528
|
|
|
|
|
66
|
|
|
4.07
|
%
|
|
|
Total interest earning assets(1)
| | |
|
|
2,769,122
|
|
|
|
|
30,601
|
|
|
4.40
|
%
|
| | |
|
|
2,659,288
|
|
|
|
|
31,318
|
|
|
4.74
|
%
|
| | |
|
|
2,628,002
|
|
|
|
|
28,720
|
|
|
4.40
|
%
|
|
|
Noninterest Earning Assets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Cash and due from banks
| | | | |
46,440
| | | | | | | | | | | | |
46,646
| | | | | | | | | | | | |
47,211
| | | | | | | | |
|
Allowance for loan losses
| | | | |
(23,493
|
)
| | | | | | | | | | | |
(24,625
|
)
| | | | | | | | | | | |
(24,480
|
)
| | | | | | | |
|
Other assets
| | |
|
|
223,601
|
|
| | | | | | | | |
|
|
218,765
|
|
| | | | | | | | |
|
|
234,714
|
|
| | | | | | |
|
Total noninterest earning assets
| | |
|
|
246,548
|
|
| | | | | | | | |
|
|
240,786
|
|
| | | | | | | | |
|
|
257,445
|
|
| | | | | | |
|
Total assets
| | |
|
$
|
3,015,670
|
|
| | | | | | | | |
|
$
|
2,900,074
|
|
| | | | | | | | |
|
$
|
2,885,447
|
|
| | | | | | |
|
Interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest bearing deposits:
| | | |
$
|
2,575,237
| | | |
$
|
453,614
| | |
0.21381
| | | | | |
$
|
2,121,623
| | | | | | | | | | | | | | | | | | | |
|
Time deposits
| | | |
$
|
400,088
| | | |
$
|
575
| | |
0.57
|
%
| | | | |
$
|
310,744
| | | |
$
|
441
| | |
0.57
|
%
| | | | |
$
|
319,715
| | | |
$
|
362
| | |
0.46
|
%
| |
|
Money market
| | | | |
622,430
| | | | |
650
| | |
0.42
|
%
| | | | | |
585,947
| | | | |
446
| | |
0.31
|
%
| | | | | |
630,911
| | | | |
534
| | |
0.34
|
%
| |
|
Negotiable order of withdrawals
| | | | |
683,527
| | | | |
639
| | |
0.37
|
%
| | | | | |
717,590
| | | | |
687
| | |
0.39
|
%
| | | | | |
656,643
| | | | |
643
| | |
0.39
|
%
| |
|
Savings deposits
| | |
|
|
130,864
|
|
|
|
|
51
|
|
|
0.16
|
%
|
| | |
|
|
220,639
|
|
|
|
|
156
|
|
|
0.28
|
%
|
| | |
|
|
208,629
|
|
|
|
|
220
|
|
|
0.42
|
%
|
|
|
Total interest bearing deposits
| | |
|
|
1,836,909
|
|
|
|
|
1,915
|
|
|
0.41
|
%
|
| | |
|
|
1,834,920
|
|
|
|
|
1,730
|
|
|
0.38
|
%
|
| | |
|
|
1,815,898
|
|
|
|
|
1,759
|
|
|
0.39
|
%
|
|
|
Other interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
FHLB advances
| | | | |
14,510
| | | | |
171
| | |
4.69
|
%
| | | | | |
14,938
| | | | |
135
| | |
3.63
|
%
| | | | | |
22,156
| | | | |
124
| | |
2.25
|
%
| |
|
Other borrowings
| | | | |
74,808
| | | | |
2
| | |
0.01
|
%
| | | | | |
55,876
| | | | |
53
| | |
0.38
|
%
| | | | | |
120,929
| | | | |
34
| | |
0.11
|
%
| |
|
Long-term debt
| | |
|
|
39,910
|
|
|
|
|
300
|
|
|
2.99
|
%
|
| | |
|
|
41,005
|
|
|
|
|
456
|
|
|
4.47
|
%
|
| | |
|
|
41,005
|
|
|
|
|
458
|
|
|
4.49
|
%
|
|
|
Total other interest-bearing liabilities
| | |
|
|
129,228
|
|
|
|
|
473
|
|
|
1.46
|
%
|
| | |
|
|
111,819
|
|
|
|
|
644
|
|
|
2.32
|
%
|
| | |
|
|
184,090
|
|
|
|
|
616
|
|
|
1.35
|
%
|
|
|
Total Interest-bearing liabilities
| | |
|
$
|
1,966,137
|
|
|
|
$
|
2,388
|
|
|
0.48
|
%
|
| | |
|
$
|
1,946,739
|
|
|
|
$
|
2,374
|
|
|
0.49
|
%
|
| | |
|
$
|
1,999,988
|
|
|
|
$
|
2,375
|
|
|
0.48
|
%
|
|
|
Noninterest bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Demand deposits
| | | |
$
|
738,328
| | | | | | | | | | | |
$
|
668,295
| | | | | | | | | | | |
$
|
605,578
| | | | | | | | |
|
Other liabilities
| | |
|
|
34,656
|
|
| | | | | | | | |
|
|
25,252
|
|
| | | | | | | | |
|
|
33,050
|
|
| | | | | | |
|
Total noninterest-bearing liabilities
| | |
|
|
772,984
|
|
| | | | | | | | |
|
|
693,547
|
|
| | | | | | | | |
|
|
638,628
|
|
| | | | | | |
|
Total liabilities
| | | | |
2,739,121
| | | | | | | | | | | | |
2,640,286
| | | | | | | | | | | | |
2,638,616
| | | | | | | | |
|
Shareholders’ equity
| | |
|
|
276,549
|
|
| | | | | | | | |
|
|
259,790
|
|
| | | | | | | | |
|
|
246,831
|
|
| | | | | | |
|
Total liabilities and shareholders’ equity
| | |
|
$
|
3,015,670
|
|
| | | | | | | | |
|
$
|
2,900,076
|
|
| | | | | | | | |
|
$
|
2,885,447
|
|
| | | | | | |
|
Net interest income (tax-equivalent basis) (1)
| | | | | |
|
$
|
28,213
|
| | | | | | | | |
|
$
|
28,944
|
| | | | | | | | |
|
$
|
26,445
|
| | | |
|
Interest rate spread (tax-equivalent basis) (1)
| | | | | | | | | |
3.98
|
%
| | | | | | | | | | |
4.36
|
%
| | | | | | | | | | |
4.02
|
%
| |
|
Net interest margin (tax-equivalent basis) (1)
| | | | | | | | | |
4.05
|
%
| | | | | | | | | | |
4.38
|
%
| | | | | | | | | | |
4.05
|
%
| |
|
Average interest-earning assets to average interesting-bearing
liabilities
| | | | | | | | | |
140.8
|
%
| | | | | | | | | | |
136.6
|
%
| | | | | | | | | | |
131.4
|
%
| |
|
Tax equivalent adjustment
| | | | | | |
$
|
596
| | | | | | | | | | |
$
|
586
| | | | | | | | | | |
$
|
502
| | | | |
|
Loan yield components:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Contractual interest rate on loans held for investment (1)
| | | | | | |
$
|
20,513
| | |
4.66
|
%
| | | | | | | |
$
|
19,932
| | |
4.62
|
%
| | | | | | | |
$
|
20,116
| | |
4.66
|
%
| |
|
Origination and other loan fee income
| | | | | | | |
2,306
| | |
0.52
|
%
| | | | | | | | |
2,536
| | |
0.59
|
%
| | | | | | | | |
1,363
| | |
0.32
|
%
| |
|
Accretion on purchased loans
| | | | | | | |
814
| | |
0.19
|
%
| | | | | | | | |
1,555
| | |
0.36
|
%
| | | | | | | | |
826
| | |
0.19
|
%
| |
|
Syndication fee income
| | | | | |
|
|
—
|
|
|
—
|
|
| | | | | |
|
|
825
|
|
|
0.19
|
%
|
| | | | | |
|
|
—
|
|
|
—
|
|
|
|
Total loan yield
| | |
|
|
|
|
$
|
23,633
|
|
|
5.37
|
%
|
|
|
|
|
|
|
|
$
|
24,848
|
|
|
5.76
|
%
|
|
|
|
|
|
|
|
$
|
22,305
|
|
|
5.26
|
%
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| (1) Includes tax equivalent adjustment using combined rate of
39.225% | |
| |
|
|
Average Balance, Average Yield Earned and Average Rate Paid |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
| | |
| | | | | Three Months Ended | | | | | Three Months Ended | |
| | | |
| December 31, 2015 |
| | |
| September 30, 2015 |
|
| | | |
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
Interest-earning assets:
| | | | | | | | | | | | | | | | | | | | | | |
|
Loans(1)
| | | |
$
|
1,663,468
| | | |
$
|
21,162
| | |
5.05
|
%
| | | | |
$
|
1,571,936
| | | |
$
|
20,181
| | |
5.09
|
%
| |
|
Loans held for sale
| | | | |
315,225
| | | | |
2,506
| | |
3.15
|
%
| | | | | |
266,620
| | | | |
2,671
| | |
3.97
|
%
| |
|
Securities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Taxable
| | | | |
566,446
| | | | |
3,108
| | |
2.18
|
%
| | | | | |
542,067
| | | | |
2,793
| | |
2.04
|
%
| |
|
Tax-exempt(1)
| | |
|
|
71,289
|
|
|
|
|
1,127
|
|
|
6.27
|
%
|
| | |
|
|
72,171
|
|
|
|
|
1,127
|
|
|
6.20
|
%
|
|
|
Total Securities(1)
| | |
|
|
637,735
|
|
|
|
|
4,235
|
|
|
2.66
|
%
|
| | |
|
|
614,238
|
|
|
|
|
3,920
|
|
|
2.53
|
%
|
|
|
Federal funds sold
| | | | |
17,739
| | | | |
19
| | |
0.42
|
%
| | | | | |
6,766
| | | | |
8
| | |
0.47
|
%
| |
|
Interest-bearing deposits with other financial institutions
| | | | |
13,080
| | | | |
53
| | |
1.61
|
%
| | | | | |
9,256
| | | | |
35
| | |
1.50
|
%
| |
|
FHLB stock
| | |
|
|
6,655
|
|
|
|
|
67
|
|
|
3.99
|
%
|
| | |
|
|
6,754
|
|
|
|
|
63
|
|
|
3.70
|
%
|
|
|
Total interest earning assets(1)
| | |
|
|
2,653,902
|
|
|
|
|
28,042
|
|
|
4.24
|
%
|
| | |
|
|
2,475,570
|
|
|
|
|
26,878
|
|
|
4.31
|
%
|
|
|
Noninterest Earning Assets:
| | | | | | | | | | | | | | | | | | | | | | |
|
Cash and due from banks
| | | | |
56,596
| | | | | | | | | | | | |
45,170
| | | | | | | | |
|
Allowance for loan losses
| | | | |
(27,308
|
)
| | | | | | | | | | | |
(28,897
|
)
| | | | | | | |
|
Other assets
| | |
|
|
152,396
|
|
| | | | | | | | |
|
|
181,296
|
|
| | | | | | |
|
Total noninterest earning assets
| | |
|
|
181,684
|
|
| | | | | | | | |
|
|
197,569
|
|
| | | | | | |
|
Total assets
| | |
|
$
|
2,835,586
|
|
| | | | | | | | |
|
$
|
2,673,139
|
|
| | | | | | |
|
Interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Interest bearing deposits:
| | | | | | | | | | | | | | | | | | | | | | |
|
Time deposits
| | | |
$
|
328,237
| | | |
$
|
306
| | |
0.37
|
%
| | | | |
$
|
306,628
| | | |
$
|
364
| | |
0.47
|
%
| |
|
Money market
| | | | |
580,708
| | | | |
461
| | |
0.31
|
%
| | | | | |
475,233
| | | | |
401
| | |
0.33
|
%
| |
|
Negotiable order of withdrawals
| | | | |
614,908
| | | | |
592
| | |
0.38
|
%
| | | | | |
602,298
| | | | |
572
| | |
0.38
|
%
| |
|
Savings deposits
| | |
|
|
207,606
|
|
|
|
|
265
|
|
|
0.51
|
%
|
| | |
|
|
190,726
|
|
|
|
|
224
|
|
|
0.47
|
%
|
|
|
Total interest bearing deposits
| | |
|
|
1,731,459
|
|
|
|
|
1,624
|
|
|
0.37
|
%
|
| | |
|
|
1,574,885
|
|
|
|
|
1,561
|
|
|
0.39
|
%
|
|
|
Other interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
FHLB advances
| | | | |
15,971
| | | | |
135
| | |
3.35
|
%
| | | | | |
18,138
| | | | |
144
| | |
3.15
|
%
| |
|
Other borrowings
| | | | |
160,536
| | | | |
49
| | |
0.12
|
%
| | | | | |
221,434
| | | | |
81
| | |
0.15
|
%
| |
|
Long-term debt
| | |
|
|
41,005
|
|
|
|
|
448
|
|
|
4.33
|
%
|
| | |
|
|
41,005
|
|
|
|
|
463
|
|
|
4.48
|
%
|
|
|
Total other interest-bearing liabilities
| | |
|
|
217,512
|
|
|
|
|
632
|
|
|
1.15
|
%
|
| | |
|
|
280,577
|
|
|
|
|
688
|
|
|
0.97
|
%
|
|
|
Total Interest-bearing liabilities
| | |
|
$
|
1,948,971
|
|
|
|
$
|
2,256
|
|
|
0.46
|
%
|
| | |
|
$
|
1,855,462
|
|
|
|
$
|
2,249
|
|
|
0.48
|
%
|
|
|
Noninterest bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Demand deposits
| | | |
$
|
599,255
| | | | | | | | | | | |
$
|
546,738
| | | | | | | | |
|
Other liabilities
| | |
|
|
53,428
|
|
| | | | | | | | |
|
|
39,240
|
|
| | | | | | |
|
Total noninterest-bearing liabilities
| | |
|
|
652,683
|
|
| | | | | | | | |
|
|
585,978
|
|
| | | | | | |
|
Total liabilities
| | | | |
2,601,654
| | | | | | | | | | | | |
2,441,440
| | | | | | | | |
|
Shareholders’ equity
| | |
|
|
233,932
|
|
| | | | | | | | |
|
|
231,699
|
|
| | | | | | |
|
Total liabilities and shareholders’ equity
| | |
|
$
|
2,835,586
|
|
| | | | | | | | |
|
$
|
2,673,139
|
|
| | | | | | |
|
Net interest income (tax-equivalent basis) (1)
| | | | | |
|
$
|
25,786
|
| | | | | | | | |
|
$
|
24,629
|
| | | |
|
Interest rate spread (tax-equivalent basis) (1)
| | | | | | | | | |
3.82
|
%
| | | | | | | | | | |
3.91
|
%
| |
|
Net interest margin (tax-equivalent basis) (1)
| | | | | | | | | |
3.85
|
%
| | | | | | | | | | |
3.95
|
%
| |
|
Average interest-earning assets to average interesting- bearing
liabilities
| | | | | | | | | |
136.2
|
%
| | | | | | | | | | |
133.4
|
%
| |
|
Tax equivalent adjustment
| | | | | | |
$
|
490
| | | | | | | | | | |
$
|
494
| | | | |
|
Loan yield components:
| | | | | | | | | | | | | | | | | | | | | | |
|
Contractual interest rate on loans held for investment (1)
| | | | | | |
$
|
20,020
| | |
4.57
|
%
| | | | | | | |
$
|
18,216
| | |
4.60
|
%
| |
|
Origination and other loan fee income
| | | | | | | |
888
| | |
0.20
|
%
| | | | | | | | |
1,590
| | |
0.40
|
%
| |
|
Accretion on purchased loans
| | | | | | | |
254
| | |
0.06
|
%
| | | | | | | | |
—
| | |
—
| | |
|
Syndication fee income
| | | | | |
|
|
—
|
|
|
—
|
|
| | | | | |
|
|
375
|
|
|
0.09
|
%
|
|
|
Total loan yield
| | |
|
|
|
|
$
|
21,162
|
|
|
5.05
|
%
|
|
|
|
|
|
|
|
$
|
20,181
|
|
|
5.09
|
%
|
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| (1) Includes tax equivalent adjustment using combined rate of
39.225% | |
| |
|
|
Average Balance, Average Yield Earned and Average Rate Paid |
For the Periods Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| |
|
| | |
| | | | | Nine Months Ended | | | | | Nine Months Ended | |
| | | |
| September 30, 2016 |
| | |
| September 30, 2015 |
|
|
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
|
| Average balances |
|
| Interest income/ expense |
|
| Average yield/ rate |
|
|
Interest-earning assets:
| | | | | | | | | | | | | | | | | | | | | | |
|
Loans(1)
| | | |
$
|
1,730,535
| | | |
$
|
70,781
| | |
5.46
|
%
| | | | |
$
|
1,483,512
| | | |
$
|
57,113
| | |
5.15
|
%
| |
|
Loans held for sale
| | | | |
313,044
| | | | |
7,101
| | |
3.03
|
%
| | | | | |
244,202
| | | | |
7,145
| | |
3.91
|
%
| |
|
Securities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Taxable
| | | | |
495,092
| | | | |
8,296
| | |
2.24
|
%
| | | | | |
515,552
| | | | |
8,675
| | |
2.25
|
%
| |
|
Tax-exempt(1)
| | |
|
|
86,368
|
|
|
|
|
3,990
|
|
|
6.17
|
%
|
| | |
|
|
74,742
|
|
|
|
|
3,493
|
|
|
6.25
|
%
|
|
|
Total Securities(1)
| | |
|
|
581,460
|
|
|
|
|
12,286
|
|
|
2.82
|
%
|
| | |
|
|
590,294
|
|
|
|
|
12,168
|
|
|
2.76
|
%
|
|
|
Federal funds sold
| | | | |
13,524
| | | | |
49
| | |
0.48
|
%
| | | | | |
7,854
| | | | |
32
| | |
0.54
|
%
| |
|
Interest-bearing deposits with other financial institutions
| | | | |
48,980
| | | | |
220
| | |
0.60
|
%
| | | | | |
9,649
| | | | |
102
| | |
1.41
|
%
| |
|
FHLB stock
| | |
|
|
6,528
|
|
|
|
|
197
|
|
|
4.03
|
%
|
| | |
|
|
6,559
|
|
|
|
|
195
|
|
|
3.97
|
%
|
|
|
Total interest earning assets(1)
| | |
|
|
2,694,071
|
|
|
|
|
90,634
|
|
|
4.49
|
%
|
| | |
|
|
2,342,070
|
|
|
|
|
76,755
|
|
|
4.38
|
%
|
|
|
Noninterest Earning Assets:
| | | | | | | | | | | | | | | | | | | | | | |
|
Cash and due from banks
| | | | |
47,409
| | | | | | | | | | | | |
41,040
| | | | | | | | |
|
Allowance for loan losses
| | | | |
(24,222
|
)
| | | | | | | | | | | |
(29,162
|
)
| | | | | | | |
|
Other assets
| | |
|
|
213,948
|
|
| | | | | | | | |
|
|
155,369
|
|
| | | | | | |
|
Total noninterest earning assets
| | |
|
|
237,135
|
|
| | | | | | | | |
|
|
167,247
|
|
| | | | | | |
|
Total assets
| | |
|
$
|
2,931,206
|
|
| | | | | | | | |
|
$
|
2,509,317
|
|
| | | | | | |
|
Interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Interest bearing deposits:
| | | | | | | | | | | | | | | | | | | | | | |
|
Time deposits
| | | |
$
|
353,645
| | | |
$
|
1,378
| | |
0.52
|
%
| | | | |
$
|
295,193
| | | |
$
|
1,253
| | |
0.57
|
%
| |
|
Money market
| | | | |
588,282
| | | | |
1,630
| | |
0.37
|
%
| | | | | |
430,064
| | | | |
1,016
| | |
0.32
|
%
| |
|
Negotiable order of withdrawals
| | | | |
706,894
| | | | |
1,969
| | |
0.37
|
%
| | | | | |
607,516
| | | | |
1,735
| | |
0.38
|
%
| |
|
Savings deposits
| | |
|
|
178,817
|
|
|
|
|
427
|
|
|
0.32
|
%
|
| | |
|
|
173,798
|
|
|
|
|
664
|
|
|
0.51
|
%
|
|
|
Total interest bearing deposits
| | |
|
|
1,827,638
|
|
|
|
|
5,404
|
|
|
0.39
|
%
|
| | |
|
|
1,506,571
|
|
|
|
|
4,668
|
|
|
0.41
|
%
|
|
|
Other interest-bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
FHLB advances
| | | | |
14,957
| | | | |
430
| | |
3.84
|
%
| | | | | |
18,982
| | | | |
473
| | |
3.33
|
%
| |
|
Other borrowings
| | | | |
83,838
| | | | |
48
| | |
0.08
|
%
| | | | | |
192,806
| | | | |
135
| | |
0.09
|
%
| |
|
Long-term debt
| | |
|
|
40,638
|
|
|
|
|
1,127
|
|
|
3.70
|
%
|
| | |
|
|
41,005
|
|
|
|
|
1,378
|
|
|
4.49
|
%
|
|
|
Total other interest-bearing liabilities
| | |
|
|
139,433
|
|
|
|
|
1,605
|
|
|
1.54
|
%
|
| | |
|
|
252,793
|
|
|
|
|
1,986
|
|
|
1.05
|
%
|
|
|
Total Interest-bearing liabilities
| | |
|
$
|
1,967,071
|
|
|
|
$
|
7,009
|
|
|
0.48
|
%
|
| | |
|
$
|
1,759,364
|
|
|
|
$
|
6,654
|
|
|
0.51
|
%
|
|
|
Noninterest bearing liabilities:
| | | | | | | | | | | | | | | | | | | | | | |
|
Demand deposits
| | | |
$
|
672,670
| | | | | | | | | | | |
$
|
492,343
| | | | | | | | |
|
Other liabilities
| | |
|
|
31,980
|
|
| | | | | | | | |
|
|
30,525
|
|
| | | | | | |
|
Total noninterest-bearing liabilities
| | |
|
|
704,650
|
|
| | | | | | | | |
|
|
522,868
|
|
| | | | | | |
|
Total liabilities
| | | | |
2,671,721
| | | | | | | | | | | | |
2,282,232
| | | | | | | | |
|
Shareholders’ equity
| | |
|
|
259,484
|
|
| | | | | | | | |
|
|
227,085
|
|
| | | | | | |
|
Total liabilities and shareholders’ equity
| | |
|
$
|
2,931,205
|
|
| | | | | | | | |
|
$
|
2,509,317
|
|
| | | | | | |
|
Net interest income (tax-equivalent basis) (1)
| | | | | |
|
$
|
83,625
|
| | | | | | | | |
|
$
|
70,101
|
| | | |
|
Interest rate spread (tax-equivalent basis) (1)
| | | | | | | | | |
4.10
|
%
| | | | | | | | | | |
3.97
|
%
| |
|
Net interest margin (tax-equivalent basis) (1)
| | | | | | | | | |
4.15
|
%
| | | | | | | | | | |
4.00
|
%
| |
|
Average interest-earning assets to average interesting-bearing
liabilities
| | | | | | | | | |
137.0
|
%
| | | | | | | | | | |
133.1
|
%
| |
|
Tax equivalent adjustment
| | | | | | |
$
|
1,684
| | | | | | | | | | |
$
|
1,525
| | | | |
|
Loan yield components:
| | | | | | | | | | | | | | | | | | | | | | |
|
Contractual interest rate on loans held for investment (1)
| | | | | | |
$
|
60,556
| | |
4.67
|
%
| | | | | | | |
$
|
52,266
| | |
4.71
|
%
| |
|
Origination and other loan fee income
| | | | | | | |
6,205
| | |
0.48
|
%
| | | | | | | | |
4,157
| | |
0.37
|
%
| |
|
Accretion on purchased loans
| | | | | | | |
3,195
| | |
0.25
|
%
| | | | | | | | |
—
| | |
—
| | |
|
Syndicated fee income
| | | | | |
|
|
825
|
|
|
0.06
|
%
|
| | | | | |
|
|
690
|
|
|
0.06
|
%
|
|
|
Total loan yield
| | | | | | |
$
|
70,781
| | |
5.46
|
%
| | | | | | | |
$
|
57,113
| | |
5.15
|
%
| |
| | | | | | | | | | | | | | | | | | | | | | |
|
| (1) Includes tax equivalent adjustment using combined rate of
39.225% |
|
|
|
|
Segment Data |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except %)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
| | | |
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Banking segment
| | | | | | | | | | | | | | | | | | | |
|
Net interest income
| | | |
$
|
28,142
| | | |
$
|
29,217
| | | |
$
|
26,014
| | | | | |
$
|
24,905
| | | |
$
|
23,625
| | |
|
Provision for loan losses
| | | | |
71
| | | | |
(789
|
)
| | | |
(9
|
)
| | | | | |
(2,127
|
)
| | | |
(1,159
|
)
| |
|
Noninterest income
| | | | |
16,005
| | | | |
15,438
| | | | |
12,676
| | | | | | |
9,997
| | | | |
12,862
| | |
|
Noninterest expense
| | |
|
|
31,785
|
|
|
|
|
28,144
|
|
|
|
|
25,607
|
|
|
|
|
|
|
28,403
|
|
|
|
|
22,309
|
|
|
|
Pre-tax income after allocations
| | | | |
12,291
| | | | |
17,300
| | | | |
13,092
| | | | | | |
8,626
| | | | |
15,337
| | |
|
Total assets
| | | | |
2,661,116
| | | | |
2,508,867
| | | | |
2,534,423
| | | | | | |
2,570,071
| | | | |
2,554,915
| | |
|
Intracompany funding income included in net interest income
| | | | |
3,473
| | | | |
2,824
| | | | |
2,259
| | | | | | |
2,332
| | | | |
2,277
| | |
| Efficiency ratio* |
|
|
|
|
65.73
|
%
|
|
|
|
63.28
|
%
|
|
|
|
66.51
|
%
|
|
|
|
|
|
70.53
|
%
|
|
|
|
63.36
|
%
|
|
|
Mortgage segment
| | | | | | | | | | | | | | | | | | | |
|
Net interest income
| | | | |
(525
|
)
| | | |
(859
|
)
| | | |
(71
|
)
| | | | | |
391
| | | | |
510
| | |
|
Provision for loan losses
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
-
| | |
|
Noninterest income
| | | | |
27,957
| | | | |
22,918
| | | | |
18,359
| | | | | | |
14,112
| | | | |
14,186
| | |
|
Noninterest expense
| | |
|
|
23,744
|
|
|
|
|
22,451
|
|
|
|
|
15,740
|
|
|
|
|
|
|
13,477
|
|
|
|
|
13,270
|
|
|
|
Direct contribution
| | | | |
3,688
| | | | |
(392
|
)
| | | |
2,548
| | | | | | |
1,026
| | | | |
1,426
| | |
|
Total assets
| | | | |
526,064
| | | | |
409,091
| | | | |
321,140
| | | | | | |
329,349
| | | | |
321,425
| | |
|
Intracompany funding charge included in net interest income
| | | | |
3,473
| | | | |
2,824
| | | | |
2,259
| | | | | | |
2,332
| | | | |
2,277
| | |
| Efficiency ratio* |
|
|
|
|
76.34
|
%
|
|
|
|
76.52
|
%
|
|
|
|
81.52
|
%
|
|
|
|
|
|
94.13
|
%
|
|
|
|
93.54
|
%
|
|
|
Mortgage originations
| | | | | | | | | | | | | | | | | | | |
|
Consumer direct
| | | |
$
|
686,882
| | | |
$
|
579,589
| | | |
$
|
419,894
| | | | | |
$
|
349,495
| | | |
$
|
402,732
| | |
|
Third party origination (TPO)
| | | | |
210,157
| | | | |
171,835
| | | | |
146,811
| | | | | | |
149,483
| | | | |
169,483
| | |
|
Retail
| | | | |
74,262
| | | | |
64,304
| | | | |
43,730
| | | | | | |
41,858
| | | | |
58,746
| | |
|
Retail footprint
| | | | |
212,266
| | | | |
174,545
| | | | |
124,941
| | | | | | |
129,964
| | | | |
141,679
| | |
|
Reverse
| | | | |
20,351
| | | | |
17,008
| | | | |
15,341
| | | | | | |
15,497
| | | | |
13,857
| | |
|
Correspondent
| | |
|
|
155,191
|
|
|
|
|
4,145
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
Total
|
|
|
|
$
|
1,359,109
|
|
|
|
$
|
1,011,426
|
|
|
|
$
|
750,717
|
|
|
|
|
|
$
|
686,297
|
|
|
|
$
|
786,497
|
|
|
|
Gain on origination and sale of mortgage loans held for sale
| | | |
$
|
33,277
| | | |
$
|
26,705
| | | |
$
|
23,280
| | | | | |
$
|
17,596
| | | |
$
|
18,744
| | |
|
Mortgage servicing income
| | |
|
|
3,661
|
|
|
|
|
3,428
|
|
|
|
|
1,223
|
|
|
|
|
|
|
1,513
|
|
|
|
|
1,050
|
|
|
|
Total mortgage banking income
| | |
|
$
|
36,938
|
|
|
|
$
|
30,133
|
|
|
|
$
|
24,503
|
|
|
|
|
|
$
|
19,109
|
|
|
|
$
|
19,794
|
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
*These measures are considered non-GAAP financial measures. See
“GAAP Reconciliation and Use of Non-GAAP financial measures” and the
corresponding financial tables below for a reconciliation and
discussion of these non-GAAP measures.
| |
| |
|
|
Loans and Deposits by Market |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
| | | |
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
| Loans by market | | | | | | | | | | | | | | | | | | | |
|
Metropolitan
| | | |
$
|
1,296,673
| | |
$
|
1,248,548
| | |
$
|
1,227,944
| | | | |
$
|
1,199,736
| | |
$
|
1,144,213
| |
|
Community
| | | | |
465,946
| | | |
464,876
| | | |
457,807
| | | | | |
464,204
| | | |
469,252
| |
|
Other
| | |
|
|
30,724
|
|
|
|
36,880
|
|
|
|
26,635
|
| | |
|
|
37,923
|
|
|
|
37,179
|
|
|
Total
| | |
|
$
|
1,793,343
|
|
|
$
|
1,750,304
|
|
|
$
|
1,712,386
|
| | |
|
$
|
1,701,863
|
|
|
$
|
1,650,644
|
|
| Deposits by market | | | | | | | | | | | | | | | | | | | |
|
Metropolitan
| | | |
$
|
1,494,267
| | |
$
|
1,380,854
| | |
$
|
1,353,613
| | | | |
$
|
1,098,842
| | |
$
|
1,064,669
| |
|
Community
| | | | |
1,084,243
| | | |
1,089,305
| | | |
1,115,520
| | | | | |
1,339,632
| | | |
1,211,129
| |
|
Mortgage (1) | | |
|
|
61,562
|
|
|
|
44,138
|
|
|
|
-
|
| | |
|
|
-
| |
|
|
-
|
|
|
Total
|
|
|
|
$
|
2,640,072
|
|
|
$
|
2,514,297
|
|
|
$
|
2,469,133
|
|
|
|
|
$
|
2,438,474
|
|
|
$
|
2,275,798
|
|
| | | | | | | | | | | | | | | | | | | |
|
| (1) Deposits related to mortgage servicing portfolio | |
| |
|
| |
|
|
| |
|
| |
|
| |
|
| |
|
| | |
Loan Portfolio and Asset Quality |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except %)
|
| | | | | | | | | | | | | | | | | |
|
|
|
|
|
| 2016 | | | 2015 | |
| | | | | September 30, 2016 | | | June 30, 2016 | | | March 31, 2016 | | | December 31, 2015 | | | September 30, 2015 | |
| | | | | | | | | | | | | | | | | |
|
|
Commercial and industrial
| | | |
$
|
370,379
| | | |
$
|
355,558
| | | |
$
|
329,191
| | | |
$
|
317,038
| | | |
$
|
303,143
| | |
|
Construction
| | | | |
227,321
| | | | |
210,029
| | | | |
210,491
| | | | |
231,025
| | | | |
208,136
| | |
|
Residential real estate:
| | | | | | | | | | | | | | | | | |
|
1-to-4 family mortgage
| | | | |
286,580
| | | | |
286,335
| | | | |
287,588
| | | | |
287,749
| | | | |
294,153
| | |
|
Residential line of credit
| | | | |
173,898
| | | | |
174,523
| | | | |
171,252
| | | | |
171,526
| | | | |
170,673
| | |
|
Multi-family mortgage
| | | | |
54,129
| | | | |
41,005
| | | | |
59,125
| | | | |
59,510
| | | | |
58,677
| | |
|
Commercial real estate:
| | | | | | | | | | | | | | | | | |
|
Owner occupied
| | | | |
350,790
| | | | |
345,999
| | | | |
340,315
| | | | |
330,207
| | | | |
322,241
| | |
|
Non-owner occupied
| | | | |
265,190
| | | | |
263,893
| | | | |
255,814
| | | | |
237,222
| | | | |
231,051
| | |
|
Consumer and other
| | | |
|
65,056
|
| | |
|
72,962
|
| | |
|
58,610
|
| | |
|
67,586
|
| | |
|
62,570
|
| |
|
Total loans held for investment
| | | |
$
|
1,793,343
|
| | |
$
|
1,750,304
|
| | |
$
|
1,712,386
|
| | |
$
|
1,701,863
|
| | |
$
|
1,650,644
|
| |
| | | | | | | | | | | | | | | | | |
|
| Allowance for loan losses rollforward summary | | | | | | | | | | | | | | | | | |
|
Allowance for loan losses at the beginning of the period
| | | |
$
|
23,734
| | | |
$
|
24,431
| | | |
$
|
24,460
| | | |
$
|
27,194
| | | |
$
|
29,030
| | |
|
Charge-off’s
| | | | |
(714
|
)
| | | |
(654
|
)
| | | |
(252
|
)
| | | |
(1,463
|
)
| | | |
(2,106
|
)
| |
|
Recoveries
| | | | |
199
| | | | |
746
| | | | |
232
| | | | |
856
| | | | |
1,429
| | |
|
Provision for loan losses
| | | |
|
71
|
| | |
|
(789
|
)
| | |
|
(9
|
)
| | |
|
(2,127
|
)
| | |
|
(1,159
|
)
| |
|
Allowance for loan losses at the end of the period
| | | |
$
|
23,290
|
| | |
$
|
23,734
|
| | |
$
|
24,431
|
| | |
$
|
24,460
|
| | |
$
|
27,194
|
| |
| | | | | | | | | | | | | | | | | |
|
|
Allowance for loan losses as a percentage of total loans held for
investment
| | | |
|
1.30
|
%
| | |
|
1.36
|
%
| | |
|
1.43
|
%
| | |
|
1.44
|
%
| | |
|
1.65
|
%
| |
| | | | | | | | | | | | | | | | | |
|
| Charge-offs: | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | | |
$
|
(358
|
)
| | |
$
|
(196
|
)
| | |
$
|
(2
|
)
| | |
$
|
(734
|
)
| | |
$
|
(104
|
)
| |
|
Construction
| | | | |
-
| | | | |
(2
|
)
| | | |
-
| | | | |
(48
|
)
| | | |
(33
|
)
| |
|
Residential real estate:
| | | | | | | | | | | | | | | | | |
|
1-to-4 family mortgage
| | | | |
(166
|
)
| | | |
(53
|
)
| | | |
-
| | | | |
(289
|
)
| | | |
(376
|
)
| |
|
Residential line of credit
| | | | |
(29
|
)
| | | |
(75
|
)
| | | |
-
| | | | |
(126
|
)
| | | |
(104
|
)
| |
|
Multi-family mortgage
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | |
|
Commercial real estate:
| | | | | | | | | | | | | | | | | |
|
Owner occupied
| | | | |
-
| | | | |
(93
|
)
| | | |
-
| | | | |
(5
|
)
| | | |
(1,057
|
)
| |
|
Non-owner occupied
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
(54
|
)
| |
|
Consumer and other
| | | |
|
(161
|
)
| | |
|
(235
|
)
| | |
|
(250
|
)
| | |
|
(261
|
)
| | |
|
(378
|
)
| |
|
Total Charge Offs:
| | | |
|
(714
|
)
| | |
|
(654
|
)
| | |
|
(252
|
)
| | |
|
(1,463
|
)
| | |
|
(2,106
|
)
| |
| Recoveries: | | | | | | | | | | | | | | | | | |
|
Commercial and Industrial
| | | | |
8
| | | | |
462
| | | | |
10
| | | | |
63
| | | | |
21
| | |
|
Construction
| | | | |
32
| | | | |
64
| | | | |
41
| | | | |
268
| | | | |
976
| | |
|
Residential real estate:
| | | | | | | | | | | | | | | | | |
|
1-to-4 family mortgage
| | | | |
2
| | | | |
45
| | | | |
62
| | | | |
34
| | | | |
92
| | |
|
Residential line of credit
| | | | |
36
| | | | |
70
| | | | |
37
| | | | |
35
| | | | |
147
| | |
|
Multi-family mortgage
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | |
|
Commercial real estate:
| | | | | | | | | | | | | | | | | |
|
Owner occupied
| | | | |
4
| | | | |
5
| | | | |
6
| | | | |
9
| | | | |
13
| | |
|
Non-owner occupied
| | | | |
22
| | | | |
1
| | | | |
4
| | | | |
336
| | | | |
3
| | |
|
Consumer and other
| | | |
|
95
|
| | |
|
99
|
| | |
|
72
|
| | |
|
111
|
| | |
|
177
|
| |
|
Total Recoveries:
| | | |
|
199
|
| | |
|
746
|
| | |
|
232
|
| | |
|
856
|
| | |
|
1,429
|
| |
|
Net (charge-off’s) recoveries
| | | |
$
|
(515
|
)
| | |
$
|
92
|
| | |
$
|
(20
|
)
| | |
$
|
(607
|
)
| | |
$
|
(677
|
)
| |
| | | | | | | | | | | | | | | | | |
|
|
Net (charge-off’s) recoveries as a percentage of average total
loans
| | | | |
-0.12
|
%
| | | |
0.02
|
%
| | | |
0.00
|
%
| | | |
-0.14
|
%
| | | |
-0.17
|
%
| |
| | | | | | | | | | | | | | | | | |
|
|
Loans classified as substandard
| | | |
$
|
40,056
| | | |
$
|
41,709
| | | |
$
|
46,295
| | | |
$
|
48,529
| | | |
$
|
62,140
| | |
| | | | | | | | | | | | | | | | | |
|
| Nonperforming assets | | | | | | | | | | | | | | | | | |
|
Past due 90 days or more and accruing interest
| | | |
$
|
1,342
| | | |
$
|
1,354
| | | |
$
|
1,431
| | | |
$
|
887
| | | |
$
|
1,734
| | |
|
Non-accrual
| | | |
|
9,622
|
| | |
|
9,752
|
| | |
|
10,064
|
| | |
|
10,700
|
| | |
|
12,850
|
| |
|
Total nonperforming loans
| | | |
$
|
10,964
| | | |
$
|
11,106
| | | |
$
|
11,495
| | | |
$
|
11,587
| | | |
$
|
14,584
| | |
|
Other real estate owned
| | | | |
8,964
| | | | |
9,902
| | | | |
10,533
| | | | |
11,641
| | | | |
11,547
| | |
|
Other
| | | |
|
1,654
|
| | |
|
1,654
|
| | |
|
1,654
|
| | |
|
1,654
|
| | |
|
1,654
|
| |
|
Total nonperforming assets
| | | |
$
|
21,582
|
| | |
$
|
22,662
|
| | |
$
|
23,682
|
| | |
$
|
24,882
|
| | |
$
|
27,785
|
| |
|
Total nonperforming loans as a percentage of loans held for
investment
| | | | |
0.61
|
%
| | | |
0.63
|
%
| | | |
0.67
|
%
| | | |
0.68
|
%
| | | |
0.88
|
%
| |
|
Total nonperforming assets as a percentage of total assets
| | | | |
0.68
|
%
| | | |
0.78
|
%
| | | |
0.83
|
%
| | | |
0.86
|
%
| | | |
0.97
|
%
| |
|
Total accruing loans over 90 days delinquent as a percentage of
total assets
| | | | |
0.04
|
%
| | | |
0.05
|
%
| | | |
0.05
|
%
| | | |
0.03
|
%
| | | |
0.06
|
%
| |
|
Loans restructured as troubled debt restructurings
| | | |
$
|
14,366
| | | |
$
|
14,970
| | | |
$
|
15,444
| | | |
$
|
15,289
| | | |
$
|
17,151
| | |
|
Troubled debt restructurings as a percentage of loans held for
investment
|
|
|
|
|
0.80
|
%
|
|
|
|
0.86
|
%
|
|
|
|
0.90
|
%
|
|
|
|
0.90
|
%
|
|
|
|
1.04
|
%
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
|
|
|
| |
|
|
|
| | |
Capital Ratios |
(Unaudited) |
(In Thousands, Except %)
|
| | | | | | | | | | | |
|
| Computation of Tangible Common Equity to Tangible Assets: |
| | |
| September 30, 2016 |
|
|
|
| December 31, 2015 |
|
| | | | | | | | | | | |
|
| Total Equity | | | | | $ | 329,108 | | | | | | $ | 236,674 | | |
|
Less:
| | | | | | | | | | | |
| Goodwill | | | | | |
46,867
| | | | | | |
46,904
| | |
|
Other intangibles
| | | |
|
|
5,089
|
|
|
|
|
|
|
6,695
|
|
|
| Tangible Common Equity | | | |
| $ | 277,152 |
|
|
|
|
| $ | 183,075 |
|
|
| | | | | | | | | | | |
|
| Total Assets | | | | | $ | 3,187,180 | | | | | | $ | 2,899,420 | | |
|
Less:
| | | | | | | | | | | |
| Goodwill | | | | | |
46,867
| | | | | | |
46,904
| | |
|
Other intangibles
| | | |
|
|
5,089
|
|
|
|
|
|
|
6,695
|
|
|
| Tangible Assets | | | |
| $ | 3,135,224 |
|
|
|
|
| $ | 2,845,821 |
|
|
| | | | | | | | | | | |
|
| Total Common Equity to Total Assets | | | |
|
| 10.33 | % |
|
|
|
|
| 8.16 | % |
|
| Tangible Common Equity to Tangible Assets* | | | |
|
| 8.84 | % |
|
|
|
|
| 6.43 | % |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | September 30, 2016 | | | | | December 31, 2015 | |
| Preliminary Regulatory Capital: | | | | | | | | | | | |
|
Common Equity Tier 1 Capital
| | | | |
$
|
275,086
| | | | | |
$
|
181,633
| | |
|
Tier 1 Capital
| | | | |
$
|
305,086
| | | | | |
$
|
211,633
| | |
|
Total Capital
| | | | |
$
|
328,376
| | | | | |
$
|
246,168
| | |
| | | | | | | | | | | |
|
| Preliminary Regulatory Capital Ratios: | | | | | | | | | | | |
|
Common Equity Tier 1
| | | | | |
11.17
|
%
| | | | | |
8.23
|
%
| |
|
Tier 1 Risk-Based
| | | | | |
12.39
|
%
| | | | | |
9.58
|
%
| |
|
Total Risk-Based
| | | | | |
13.33
|
%
| | | | | |
11.15
|
%
| |
|
Tier 1 Leverage
| | | | | |
10.32
|
%
| | | | | |
7.64
|
%
| |
| | | | | | | | | | | |
|
|
*These measures are considered non-GAAP financial measures. See
“GAAP Reconciliation and Use of Non-GAAP financial measures” and the
corresponding financial tables below for a reconciliation and
discussion of these non-GAAP measures.
| |
| |
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
Investment Portfolio |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Securities available for sale (at fair value)
| | |
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Debt securities
| | | | | | | | | | | | | | | | | | | |
| U.S. government agency securities
| | | |
$
|
2,501
| | |
$
|
15,510
| | |
$
|
19,181
| | | | |
$
|
33,808
| | |
$
|
35,624
| |
|
Mortgage-backed securities - residential
| | | | |
433,564
| | | |
425,311
| | | |
472,706
| | | | | |
522,373
| | | |
492,082
| |
|
Municipals, tax exempt
| | | | |
104,112
| | | |
96,001
| | | |
82,043
| | | | | |
79,837
| | | |
76,329
| |
| Treasury securities
| | |
|
|
4,506
|
|
|
|
4,513
|
|
|
|
4,506
|
| | |
|
|
4,485
|
|
|
|
4,510
|
|
|
Total debt securities
| | | | |
544,683
| | | |
541,335
| | | |
578,436
| | | | | |
640,503
| | | |
608,545
| |
|
Equity securities
| | |
|
|
8,674
|
|
|
|
8,972
|
|
|
|
8,941
|
| | |
|
|
8,884
|
|
|
|
8,846
|
|
|
Total securities available-for-sale
| | |
|
$
|
553,357
|
|
|
$
|
550,307
|
|
|
$
|
587,377
|
| | |
|
$
|
649,387
|
|
|
$
|
617,391
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | |
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
| Pro forma core net income |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
| Pre-tax net income | | | | $ | 15,979 | | | | $ | 16,908 | | | | $ | 15,640 | | | | | | $ | 9,652 | | | | $ | 16,763 | | |
| Non-core items: | | | | | | | | | | | | | | | | | | | |
|
Noninterest income
| | | | | | | | | | | | | | | | | | | |
|
Bargain purchase gain
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
2,794
| | |
|
Gain on sale of securities
| | | | |
416
| | | | |
2,591
| | | | |
1,400
| | | | | | |
2
| | | | |
47
| | |
|
(Loss) gain on sales or write-downs of foreclosed assets
| | | | |
1,646
| | | | |
(131
|
)
| | | |
(11
|
)
| | | | | |
(274
|
)
| | | |
(105
|
)
| |
|
Gain (loss) on other assets
| | | | |
7
| | | | |
(123
|
)
| | | |
140
| | | | | | |
(13
|
)
| | | |
5
| | |
|
Noninterest expenses
| | | | | | | | | | | | | | | | | | | |
|
One-time equity grants
| | | | |
2,960
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
-
| | |
|
Merger and conversion
| | | | |
1,122
| | | | |
1,540
| | | | |
606
| | | | | | |
2,965
| | | | |
291
| | |
|
Impairment of mortgage servicing rights
| | |
|
|
2,402
|
|
|
|
|
4,914
|
|
|
|
|
773
|
|
|
|
|
|
|
194
|
|
|
|
|
-
|
|
|
| Pre tax core net income | | | | $ | 20,394 | | | | $ | 21,025 | | | | $ | 15,490 | | | | | | $ | 13,096 | | | | $ | 14,313 | | |
|
Pro forma core income tax expense
| | |
|
|
7,593
|
|
|
|
|
7,874
|
|
|
|
|
5,781
|
|
|
|
|
|
|
5,043
|
|
|
|
|
4,271
|
|
|
| Pro forma core net income | | |
| $ | 12,801 |
|
|
| $ | 13,151 |
|
|
| $ | 9,709 |
|
|
|
|
| $ |
8,053
|
|
|
| $ | 10,042 |
|
|
|
Weighted average common shares outstanding fully diluted
| | | | |
18,332,938
| | | | |
17,180,000
| | | | |
17,180,000
| | | | | | |
17,180,000
| | | | |
17,180,000
| | |
| | | | | | | | | | | | | | | | | | | |
|
| Pro forma core diluted earnings per share | | | | | | | | | | | | | | | | | | | |
| Diluted earning per share | | | | $ | 0.07 | | | | $ | 0.92 | | | | $ | 0.85 | | | | | | $ | 0.53 | | | | $ | 0.93 | | |
| Non-core items: | | | | | | | | | | | | | | | | | | | |
|
Noninterest income
| | | | | | | | | | | | | | | | | | | |
|
Bargain purchase gain
| | | |
$
|
-
| | | |
$
|
-
| | | |
$
|
-
| | | | | |
$
|
-
| | | |
$
|
0.16
| | |
|
Gain on sale of securities
| | | | |
0.02
| | | | |
0.15
| | | | |
0.08
| | | | | | |
0.00
| | | | |
0.00
| | |
|
(Loss) gain on sales or write-downs of foreclosed assets
| | | | |
0.09
| | | | |
(0.01
|
)
| | | |
(0.00
|
)
| | | | | |
(0.02
|
)
| | | |
(0.01
|
)
| |
|
Gain (loss) on other assets
| | | | |
0.00
| | | | |
(0.01
|
)
| | | |
0.01
| | | | | | |
(0.00
|
)
| | | |
0.00
| | |
| | | | | | | | | | | | | | | | | | | |
|
|
Noninterest expenses
| | | | | | | | | | | | | | | | | | | |
|
One-time equity grants
| | | | |
0.16
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
-
| | |
|
Merger and conversion
| | | | |
0.06
| | | | |
0.09
| | | | |
0.04
| | | | | | |
0.17
| | | | |
0.02
| | |
|
Impairment of mortgage servicing rights
| | | | |
0.13
| | | | |
0.29
| | | | |
0.04
| | | | | | |
0.01
| | | | |
-
| | |
|
Tax effect
| | | |
|
0.39
|
| | |
|
(0.39
|
)
| | |
|
(0.28
|
)
| | | | |
|
(0.27
|
)
| | |
|
(0.36
|
)
| |
| Pro forma core diluted earnings per share | | | | $ | 0.70 |
| | | $ | 0.77 |
| | | $ | 0.57 |
| | | | | $ | 0.47 |
| | | $ | 0.58 |
| |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Efficiency ratio (tax-equivalent basis) |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Total noninterest expense
| | | |
$
|
55,529
| | | |
$
|
50,595
| | | |
$
|
41,347
| | | | | |
$
|
41,880
| | | |
$
|
35,579
| | |
|
Less one-time equity grants
| | | | |
2,960
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
-
| | |
|
Less merger and conversion expenses
| | | | |
1,122
| | | | |
1,540
| | | | |
606
| | | | | | |
2,965
| | | | |
291
| | |
|
Less impairment of mortgage servicing rights
| | |
|
|
2,402
|
|
|
|
|
4,914
|
|
|
|
|
773
|
|
|
|
|
|
|
194
|
|
|
|
|
-
|
|
|
|
Core noninterest expense
| | |
|
$
|
49,045
|
|
|
|
$
|
44,141
|
|
|
|
$
|
39,968
|
|
|
|
|
|
$
|
38,721
|
|
|
|
$
|
35,288
|
|
|
|
Net interest income (tax-equivalent basis)
| | | | |
28,213
| | | | |
28,944
| | | | |
26,445
| | | | | | |
25,786
| | | | |
24,629
| | |
|
Total noninterest income
| | | | |
43,962
| | | | |
38,356
| | | | |
31,035
| | | | | | |
24,109
| | | | |
27,048
| | |
|
Less bargain purchase gain
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
2,794
| | |
|
Less gain on sales or write-downs of other real estate
| | | | |
1,646
| | | | |
(131
|
)
| | | |
(11
|
)
| | | | | |
(274
|
)
| | | |
(105
|
)
| |
|
Less gain (loss) on other assets
| | | | |
7
| | | | |
(123
|
)
| | | |
140
| | | | | | |
(13
|
)
| | | |
5
| | |
|
Less gain on sales of securities
| | |
|
|
416
|
|
|
|
|
2,591
|
|
|
|
|
1,400
|
|
|
|
|
|
|
2
|
|
|
|
|
47
|
|
|
|
Core noninterest income
| | |
|
|
41,893
|
|
|
|
|
36,019
|
|
|
|
|
29,506
|
|
|
|
|
|
|
24,394
|
|
|
|
|
24,307
|
|
|
|
Core revenue
| | |
|
$
|
70,106
|
|
|
|
$
|
64,963
|
|
|
|
$
|
55,951
|
|
|
|
|
|
$
|
50,180
|
|
|
|
$
|
48,936
|
|
|
| Efficiency ratio (tax-equivalent basis) | | | | |
69.96
|
%
| | | |
67.95
|
%
| | | |
71.43
|
%
| | | | | |
77.16
|
%
| | | |
72.11
|
%
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
| Banking segment efficiency ratio (tax equivalent) |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Core noninterest expense
| | | |
$
|
49,045
| | | |
$
|
44,141
| | | |
$
|
39,968
| | | | | |
$
|
38,721
| | | |
$
|
35,288
| | |
|
Less Mortgage Banking segment noninterest expense
| | | | |
23,744
| | | | |
22,451
| | | | |
15,740
| | | | | | |
13,477
| | | | |
13,270
| | |
|
Add impairment of mortgage servicing rights
| | |
|
|
2,402
|
|
|
|
|
4,914
|
|
|
|
|
773
|
|
| | |
|
|
194
|
|
|
|
|
-
|
|
|
|
Adjusted Banking segment noninterest expense
| | |
|
|
27,703
|
|
|
|
|
26,604
|
|
|
|
|
25,001
|
|
| | |
|
|
25,438
|
|
|
|
|
22,018
|
|
|
|
Adjusted core revenue
| | | | |
70,106
| | | | |
64,963
| | | | |
55,951
| | | | | | |
50,180
| | | | |
48,936
| | |
|
Less Mortgage Banking segment noninterest income
| | |
|
|
27,957
|
|
|
|
|
22,918
|
|
|
|
|
18,359
|
|
| | |
|
|
14,112
|
|
|
|
|
14,186
|
|
|
|
Adjusted Banking segment noninterest income
| | | |
$
|
42,149
| | | |
$
|
42,045
| | | |
$
|
37,592
| | | | | |
$
|
36,068
| | | |
$
|
34,750
| | |
| Banking segment efficiency ratio (tax-equivalent basis) | | | | |
65.73
|
%
| | | |
63.28
|
%
| | | |
66.51
|
%
| | | | | |
70.53
|
%
| | | |
63.36
|
%
| |
| | | | | | | | | | | | | | | | | | | |
|
| Mortgage Banking segment efficiency ratio (tax equivalent) | | | | | | | | | | | | | | | | | | | |
|
Noninterest expense
| | | |
$
|
55,529
| | | |
$
|
50,595
| | | |
$
|
41,347
| | | | | |
$
|
41,880
| | | |
$
|
35,579
| | |
|
Less impairment of mortgage servicing rights
| | | | |
2,402
| | | | |
4,914
| | | | |
773
| | | | | | |
194
| | | | |
-
| | |
|
Less Banking segment noninterest expense
| | |
|
|
31,785
|
|
|
|
|
28,144
|
|
|
|
|
25,607
|
|
| | |
|
|
28,403
|
|
|
|
|
22,309
|
|
|
|
Adjusted Mortgage Banking segment noninterest expense
| | | |
$
|
21,342
| | | |
$
|
17,537
| | | |
$
|
14,967
| | | | | |
$
|
13,283
| | | |
$
|
13,270
| | |
|
Total noninterest income
| | | | |
43,962
| | | | |
38,356
| | | | |
31,035
| | | | | | |
24,109
| | | | |
27,048
| | |
|
Less Banking segment noninterest income
| | |
|
|
16,005
|
|
|
|
|
15,438
|
|
|
|
|
12,676
|
|
| | |
|
|
9,997
|
|
|
|
|
12,862
|
|
|
|
Adjusted Mortgage Banking segment noninterest income
| | | |
$
|
27,957
| | | |
$
|
22,918
| | | |
$
|
18,359
| | | | | |
$
|
14,112
| | | |
$
|
14,186
| | |
| Mortgage Banking segment efficiency ratio (tax-equivalent basis) |
|
|
|
|
76.34
|
%
|
|
|
|
76.52
|
%
|
|
|
|
81.52
|
%
|
|
|
|
|
|
94.13
|
%
|
|
|
|
93.54
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Tangible assets and equity |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
| Tangible Assets | | | | | | | | | | | | | | | | | | | |
|
Total assets
| | | |
$
|
3,187,180
| | | |
$
|
2,917,958
| | | |
$
|
2,855,563
| | | | | |
$
|
2,899,420
| | | |
$
|
2,876,340
| | |
|
Less goodwill
| | | | |
46,867
| | | | |
46,867
| | | | |
46,867
| | | | | | |
46,904
| | | | |
46,904
| | |
|
Less core deposit intangibles
| | |
|
|
5,089
|
|
|
|
|
5,616
|
|
|
|
|
6,143
|
|
| | |
|
|
6,695
|
|
|
|
|
7,205
|
|
|
| Tangible assets | | |
|
$
|
3,135,224
|
|
|
|
$
|
2,865,475
|
|
|
|
$
|
2,802,553
|
|
| | |
|
$
|
2,845,821
|
|
|
|
$
|
2,822,231
|
|
|
| Tangible Common Equity | | | | | | | | | | | | | | | | | | | |
|
Total shareholders’ equity
| | | |
$
|
329,108
| | | |
$
|
265,768
| | | |
$
|
253,236
| | | | | |
$
|
236,674
| | | |
$
|
235,636
| | |
|
Less goodwill
| | | | |
46,867
| | | | |
46,867
| | | | |
46,867
| | | | | | |
46,904
| | | | |
46,904
| | |
|
Less core deposit intangibles
| | |
|
|
5,089
|
|
|
|
|
5,616
|
|
|
|
|
6,143
|
|
| | |
|
|
6,695
|
|
|
|
|
7,205
|
|
|
| Tangible common equity | | |
|
$
|
277,152
|
|
|
|
$
|
213,285
|
|
|
|
$
|
200,226
|
|
| | |
|
$
|
183,075
|
|
|
|
$
|
181,527
|
|
|
|
Common shares outstanding
| | | | |
23,975,122
| | | | |
17,180,000
| | | | |
17,180,000
| | | | | | |
17,180,000
| | | | |
17,180,000
| | |
|
Book value per common share
| | | |
$
|
13.73
| | | |
$
|
15.47
| | | |
$
|
14.74
| | | | | |
$
|
13.78
| | | |
$
|
13.72
| | |
| Tangible book value per common share | | | |
$
|
11.56
| | | |
$
|
12.41
| | | |
$
|
11.65
| | | | | |
$
|
10.66
| | | |
$
|
10.57
| | |
|
Total shareholders’ equity to total assets
| | | | |
10.33
|
%
| | | |
9.11
|
%
| | | |
8.87
|
%
| | | | | |
8.16
|
%
| | | |
8.19
|
%
| |
| Tangible common equity to tangible assets | | | | |
8.84
|
%
| | | |
7.44
|
%
| | | |
7.14
|
%
| | | | | |
6.43
|
%
| | | |
6.43
|
%
| |
|
Net income
| | | |
$
|
1,207
| | | |
$
|
15,775
| | | |
$
|
14,599
| | | | | |
$
|
9,191
| | | |
$
|
15,905
| | |
| Return on tangible common equity |
|
|
|
|
1.73
|
%
|
|
|
|
29.75
|
%
|
|
|
|
29.33
|
%
|
|
|
|
|
|
19.92
|
%
|
|
|
|
34.76
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Return on average tangible equity |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Total average shareholders’ equity
| | | |
$
|
276,549
| | | |
$
|
259,790
| | | |
$
|
246,831
| | | | | |
$
|
233,932
| | | |
$
|
231,699
| | |
|
Less average goodwill
| | | | |
46,839
| | | | |
46,839
| | | | |
46,868
| | | | | | |
46,875
| | | | |
46,875
| | |
|
Less average core deposit intangibles
| | |
|
|
5,402
|
|
|
|
|
5,912
|
|
|
|
|
6,487
|
|
| | |
|
|
6,042
|
|
|
|
|
4,323
|
|
|
| Average tangible average common equity | | | |
$
|
224,308
| | | |
$
|
207,039
| | | |
$
|
193,476
| | | | | |
$
|
181,015
| | | |
$
|
180,501
| | |
|
Net income
| | | |
$
|
1,207
| | | |
$
|
15,775
| | | |
$
|
14,599
| | | | | |
$
|
9,191
| | | |
$
|
15,905
| | |
| Return on average tangible common equity |
|
|
|
|
2.14
|
%
|
|
|
|
30.64
|
%
|
|
|
|
30.35
|
%
|
|
|
|
|
|
20.14
|
%
|
|
|
|
34.96
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Pro forma return on average tangible common equity |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Tangible average equity
| | | |
$
|
224,308
| | | |
$
|
207,039
| | | |
$
|
193,476
| | | | | |
$
|
181,015
| | | |
$
|
180,501
| | |
|
Pro forma net income
| | | |
$
|
10,033
| | | |
$
|
10,576
| | | |
$
|
9,803
| | | | | |
$
|
5,935
| | | |
$
|
11,583
| | |
| Pro forma return on average tangible common equity |
|
|
|
|
17.79
|
%
|
|
|
|
20.55
|
%
|
|
|
|
20.38
|
%
|
|
|
|
|
|
13.01
|
%
|
|
|
|
25.46
|
%
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data)
|
| |
|
|
| |
|
| |
|
| |
|
|
|
| |
|
| | |
| | | |
| 2016 |
| | |
| 2015 |
|
| Pro forma core return on average tangible equity |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Pre-tax pro forma net income
| | | |
$
|
15,979
| | | |
$
|
16,908
| | | |
$
|
15,640
| | | | | |
$
|
9,652
| | | |
$
|
16,763
| | |
|
Adjustments:
| | | | | | | | | | | | | | | | | | | |
|
Add non-core items
| | | | |
4,415
| | | | |
4,117
| | | | |
(150
|
)
| | | | | |
3,444
| | | | |
(2,450
|
)
| |
|
Less pro forma core income tax expense
| | |
|
|
7,593
|
|
|
|
|
7,874
|
|
|
|
|
5,781
|
|
| | |
|
|
5,043
|
|
|
|
|
4,271
|
|
|
| Pro forma core income | | | |
$
|
12,801
| | | |
$
|
13,151
| | | |
$
|
9,709
| | | | | |
$
|
8,053
| | | |
$
|
10,042
| | |
| Pro forma core return on average tangible common equity |
|
|
|
|
22.70
|
%
|
|
|
|
25.55
|
%
|
|
|
|
20.18
|
%
|
|
|
|
|
|
17.65
|
%
|
|
|
|
22.07
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Pro forma core return on average assets and equity |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Return on average assets
| | | | |
0.16
|
%
| | | |
2.19
|
%
| | | |
2.03
|
%
| | | | | |
1.29
|
%
| | | |
2.41
|
%
| |
|
Return on average equity
| | | | |
1.74
|
%
| | | |
24.42
|
%
| | | |
23.79
|
%
| | | | | |
15.59
|
%
| | | |
27.84
|
%
| |
| Pro forma core return on average assets | | | | |
1.69
|
%
| | | |
1.82
|
%
| | | |
1.35
|
%
| | | | | |
1.13
|
%
| | | |
1.49
|
%
| |
| Pro forma core return on average equity |
|
|
|
|
18.42
|
%
|
|
|
|
20.36
|
%
|
|
|
|
15.82
|
%
|
|
|
|
|
|
13.66
|
%
|
|
|
|
17.19
|
%
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Pro forma core total revenue |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Net interest income
| | | |
$
|
27,617
| | | |
$
|
28,358
| | | |
$
|
25,943
| | | | | |
$
|
25,296
| | | |
$
|
24,135
| | |
|
Noninterest income
| | | | |
43,962
| | | | |
38,356
| | | | |
31,035
| | | | | | |
24,109
| | | | |
27,048
| | |
|
Less adjustments:
| | | | | | | | | | | | | | | | | | | |
|
Bargain purchase gain
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | |
-
| | | | |
2,794
| | |
|
Gain on sale of securities
| | | | |
416
| | | | |
2,591
| | | | |
1,400
| | | | | | |
2
| | | | |
47
| | |
|
(Loss) gain on sales or write-downs of foreclosed assets
| | | | |
1,646
| | | | |
(131
|
)
| | | |
(11
|
)
| | | | | |
(274
|
)
| | | |
(105
|
)
| |
|
Gain (loss) on other assets
| | |
|
|
7
|
|
|
|
|
(123
|
)
|
|
|
|
140
|
|
| | |
|
|
(13
|
)
|
|
|
|
5
|
|
|
| Pro forma core total revenue |
|
|
|
$
|
69,510
|
|
|
|
$
|
64,377
|
|
|
|
$
|
55,449
|
|
|
|
|
|
$
|
49,690
|
|
|
|
$
|
48,442
|
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
| 2016 |
| | |
| 2015 |
|
| Core deposits |
|
|
| Third Quarter |
|
| Second Quarter |
|
| First Quarter |
| | |
| Fourth Quarter |
|
| Third Quarter |
|
|
Total deposits
| | | |
$
|
2,640,072
| | | |
$
|
2,514,297
| | | |
$
|
2,469,133
| | | | | |
$
|
2,438,474
| | | |
$
|
2,275,798
| | |
|
Less jumbo time deposits
| | |
|
|
64,275
|
|
|
|
|
58,999
|
|
|
|
|
52,044
|
|
| | |
|
|
52,320
|
|
|
|
|
50,422
|
|
|
| Core deposits |
|
|
|
$
|
2,575,797
|
|
|
|
$
|
2,455,298
|
|
|
|
$
|
2,417,089
|
|
|
|
|
|
$
|
2,386,154
|
|
|
|
$
|
2,225,376
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027007026/en/
FB Financial Corporation
Media Contact:
Jeanie M. Rittenberry,
615-313-8328
jrittenberry@firstbankonline.com
or
Financial
Contact:
James R. Gordon, 615-564-1212
jgordon@firstbankonline.com
www.firstbankonline.com
Source: FB Financial Corporation