07/24/2024 | Press release | Distributed by Public on 07/24/2024 14:09
Financial Highlights | ||||||||||
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited) | ||||||||||
Three Months Ended | ||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
Income statement: | ||||||||||
Net interest income | $ | 45,279 | $ | 43,288 | $ | 42,257 | $ | 42,090 | $ | 46,160 |
Credit loss expense | 2,369 | 805 | 1,274 | 263 | 680 | |||||
Non-interest income | 10,485 | 9,929 | (20,449) | 11,830 | 10,997 | |||||
Non-interest expense | 37,522 | 37,107 | 39,330 | 36,168 | 36,262 | |||||
Income tax expense | 1,733 | 1,314 | 6,419 | 1,284 | 1,452 | |||||
Net income | $ | 14,140 | $ | 13,991 | $ | (25,215) | $ | 16,205 | $ | 18,763 |
Per share data: | ||||||||||
Basic earnings per share | $ | 0.32 | $ | 0.32 | $ | (0.58) | $ | 0.37 | $ | 0.43 |
Diluted earnings per share | 0.32 | 0.32 | (0.58) | 0.37 | 0.43 | |||||
Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | |||||
Book value per common share | 16.62 | 16.49 | 16.47 | 15.89 | 16.25 | |||||
Market value - high | 12.74 | 14.44 | 14.65 | 12.68 | 11.10 | |||||
Market value - low | 11.29 | 11.75 | 9.33 | 9.90 | 7.75 | |||||
Weighted average shares outstanding - Basic | 43,712,059 | 43,663,610 | 43,649,585 | 43,646,609 | 43,639,987 | |||||
Weighted average shares outstanding - Diluted | 43,987,187 | 43,874,036 | 43,649,585 | 43,796,069 | 43,742,588 | |||||
Common shares outstanding (end of period) | 43,712,059 | 43,726,380 | 43,652,063 | 43,648,501 | 43,645,216 | |||||
Key ratios: | ||||||||||
Return on average assets | 0.73 | % | 0.72 | % | (1.27) | % | 0.81 | % | 0.96 | % |
Return on average stockholders' equity | 7.83 | 7.76 | (14.23) | 8.99 | 10.59 | |||||
Total equity to total assets | 9.18 | 9.18 | 9.06 | 8.71 | 8.91 | |||||
Total loans to deposit ratio | 85.70 | 82.78 | 78.01 | 76.52 | 74.85 | |||||
Annualized non-interest expense to average assets | 1.94 | 1.90 | 1.98 | 1.81 | 1.86 | |||||
Allowance for credit losses to HFI loans | 1.08 | 1.09 | 1.13 | 1.14 | 1.17 | |||||
Annualized net charge-offs of average total loans(1)
|
0.05 | 0.04 | 0.07 | 0.07 | 0.04 | |||||
Efficiency ratio | 67.29 | 69.73 | 180.35 | 67.08 | 63.44 | |||||
Key metrics (Non-GAAP)(2) :
|
||||||||||
Net FTE interest margin | 2.64 | % | 2.50 | % | 2.43 | % | 2.41 | % | 2.69 | % |
Return on average tangible common equity | 10.18 | 10.11 | (18.76) | 11.79 | 13.94 | |||||
Tangible common equity to tangible assets | 7.22 | 7.20 | 7.08 | 6.72 | 6.91 | |||||
Tangible book value per common share | $ | 12.80 | $ | 12.65 | $ | 12.60 | $ | 12.00 | $ | 12.34 |
(1) Average total loans includes loans held for investment and held for sale.
|
||||||||||
(2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
|
For the Quarter Ended | June 30, | March 31, | December 31, | September 30, | June 30, | |||||
(Dollars in Thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Non-interest Income | ||||||||||
Service charges on deposit accounts | $ | 3,130 | $ | 3,214 | $ | 3,092 | $ | 3,086 | $ | 3,021 |
Wire transfer fees | 113 | 101 | 103 | 120 | 116 | |||||
Interchange fees | 3,826 | 3,109 | 3,224 | 3,186 | 3,584 | |||||
Fiduciary activities | 1,372 | 1,315 | 1,352 | 1,206 | 1,247 | |||||
Gains (losses) on sale of investment securities | - | - | (31,572) | - | 20 | |||||
Gain on sale of mortgage loans | 896 | 626 | 951 | 1,582 | 1,005 | |||||
Mortgage servicing income net of impairment | 450 | 439 | 724 | 631 | 640 | |||||
Increase in cash value of bank owned life insurance | 318 | 298 | 658 | 1,055 | 1,015 | |||||
Other income | 380 | 827 | 1,019 | 964 | 349 | |||||
Total non-interest income | $ | 10,485 | $ | 9,929 | $ | (20,449) | $ | 11,830 | $ | 10,997 |
For the Quarter Ended | June 30, | March 31, | December 31, | September 30, | June 30, | |||||
(Dollars in Thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Non-interest Expense | ||||||||||
Salaries and employee benefits | $ | 20,583 | $ | 20,268 | $ | 21,877 | $ | 20,058 | $ | 20,162 |
Net occupancy expenses | 3,192 | 3,546 | 3,260 | 3,283 | 3,249 | |||||
Data processing | 2,579 | 2,464 | 2,942 | 2,999 | 3,016 | |||||
Professional fees | 714 | 607 | 772 | 707 | 633 | |||||
Outside services and consultants | 3,058 | 3,359 | 2,394 | 2,316 | 2,515 | |||||
Loan expense | 1,038 | 719 | 1,345 | 1,120 | 1,397 | |||||
FDIC insurance expense | 1,315 | 1,320 | 1,200 | 1,300 | 840 | |||||
Core deposit intangible amortization | 844 | 872 | 903 | 903 | 903 | |||||
Other losses | 515 | 16 | 508 | 188 | 134 | |||||
Other expense | 3,684 | 3,936 | 4,129 | 3,294 | 3,413 | |||||
Total non-interest expense | $ | 37,522 | $ | 37,107 | $ | 39,330 | $ | 36,168 | $ | 36,262 |
For the Quarter Ended | June 30, | March 31, | December 31, | |||
2024* | 2024** | 2023** | ||||
Consolidated Capital Ratios | ||||||
Total capital (to risk-weighted assets) | 13.36 | % | 13.75 | % | 14.04 | % |
Tier 1 capital (to risk-weighted assets) | 11.56 | % | 11.89 | % | 12.13 | % |
Common equity tier 1 capital (to risk-weighted assets) | 10.60 | % | 10.89 | % | 11.11 | % |
Tier 1 capital (to average assets) | 8.98 | % | 8.91 | % | 8.61 | % |
*Preliminary estimate - may be subject to change | ||||||
**Prior periods have been revised (see disclosure below) |
Condensed Consolidated Statements of Income | ||||||||||||||
(Dollars in Thousands Except Per Share Data, Unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | ||||||||
2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||
Interest Income | ||||||||||||||
Loans receivable | $ | 71,880 | $ | 66,954 | $ | 65,583 | $ | 63,003 | $ | 60,594 | $ | 138,834 | $ | 115,958 |
Investment securities - taxable | 7,986 | 7,362 | 8,157 | 8,788 | 8,740 | 15,348 | 17,465 | |||||||
Investment securities - tax-exempt | 6,377 | 6,451 | 6,767 | 7,002 | 7,059 | 12,828 | 14,615 | |||||||
Other | 738 | 4,497 | 3,007 | 1,332 | 475 | 5,235 | 628 | |||||||
Total interest income | 86,981 | 85,264 | 83,514 | 80,125 | 76,868 | 172,245 | 148,666 | |||||||
Interest Expense | ||||||||||||||
Deposits | 28,447 | 27,990 | 27,376 | 24,704 | 18,958 | 56,437 | 33,777 | |||||||
Borrowed funds | 11,213 | 11,930 | 11,765 | 11,224 | 9,718 | 23,143 | 19,489 | |||||||
Subordinated notes | 829 | 831 | 870 | 880 | 881 | 1,660 | 1,761 | |||||||
Junior subordinated debentures issued to capital trusts | 1,213 | 1,225 | 1,246 | 1,227 | 1,151 | 2,438 | 2,241 | |||||||
Total interest expense | 41,702 | 41,976 | 41,257 | 38,035 | 30,708 | 83,678 | 57,268 | |||||||
Net Interest Income | 45,279 | 43,288 | 42,257 | 42,090 | 46,160 | 88,567 | 91,397 | |||||||
Provision for loan losses | 2,369 | 805 | 1,274 | 263 | 680 | 3,174 | 922 | |||||||
Net Interest Income after Provision for Loan Losses | 42,910 | 42,483 | 40,983 | 41,827 | 45,480 | 85,393 | 90,475 | |||||||
Non-interest Income | ||||||||||||||
Service charges on deposit accounts | 3,130 | 3,214 | 3,092 | 3,086 | 3,021 | 6,344 | 6,049 | |||||||
Wire transfer fees | 113 | 101 | 103 | 120 | 116 | 214 | 225 | |||||||
Interchange fees | 3,826 | 3,109 | 3,224 | 3,186 | 3,584 | 6,935 | 6,451 | |||||||
Fiduciary activities | 1,372 | 1,315 | 1,352 | 1,206 | 1,247 | 2,687 | 2,522 | |||||||
Gains (losses) on sale of investment securities | - | - | (31,572) | - | 20 | - | (480) | |||||||
Gain on sale of mortgage loans | 896 | 626 | 951 | 1,582 | 1,005 | 1,522 | 1,790 | |||||||
Mortgage servicing income net of impairment | 450 | 439 | 724 | 631 | 640 | 889 | 1,353 | |||||||
Increase in cash value of bank owned life insurance | 318 | 298 | 658 | 1,055 | 1,015 | 616 | 1,996 | |||||||
Other income | 380 | 827 | 1,019 | 964 | 349 | 1,207 | 711 | |||||||
Total non-interest income | 10,485 | 9,929 | (20,449) | 11,830 | 10,997 | 20,414 | 20,617 | |||||||
Non-interest Expense | ||||||||||||||
Salaries and employee benefits | 20,583 | 20,268 | 21,877 | 20,058 | 20,162 | 40,851 | 38,874 | |||||||
Net occupancy expenses | 3,192 | 3,546 | 3,260 | 3,283 | 3,249 | 6,738 | 6,812 | |||||||
Data processing | 2,579 | 2,464 | 2,942 | 2,999 | 3,016 | 5,043 | 5,685 | |||||||
Professional fees | 714 | 607 | 772 | 707 | 633 | 1,321 | 1,166 | |||||||
Outside services and consultants | 3,058 | 3,359 | 2,394 | 2,316 | 2,515 | 6,417 | 5,232 | |||||||
Loan expense | 1,038 | 719 | 1,345 | 1,120 | 1,397 | 1,757 | 2,515 | |||||||
FDIC insurance expense | 1,315 | 1,320 | 1,200 | 1,300 | 840 | 2,635 | 1,380 | |||||||
Core deposit intangible amortization | 844 | 872 | 903 | 903 | 903 | 1,716 | 1,806 | |||||||
Other losses | 515 | 16 | 508 | 188 | 134 | 531 | 355 | |||||||
Other expense | 3,684 | 3,936 | 4,129 | 3,294 | 3,413 | 7,620 | 6,961 | |||||||
Total non-interest expense | 37,522 | 37,107 | 39,330 | 36,168 | 36,262 | 74,629 | 70,786 | |||||||
Income /(Loss) Before Income Taxes | 15,873 | 15,305 | (18,796) | 17,489 | 20,215 | 31,178 | 40,306 | |||||||
Income tax expense | 1,733 | 1,314 | 6,419 | 1,284 | 1,452 | 3,047 | 3,315 | |||||||
Net Income /(Loss) | $ | 14,140 | $ | 13,991 | $ | (25,215) | $ | 16,205 | $ | 18,763 | $ | 28,131 | $ | 36,991 |
Basic Earnings /(Loss) Per Share | $ | 0.32 | $ | 0.32 | $ | (0.58) | $ | 0.37 | $ | 0.43 | $ | 0.64 | $ | 0.85 |
Diluted Earnings/(Loss) Per Share | 0.32 | 0.32 | (0.58) | 0.37 | 0.43 | 0.64 | 0.85 |
Condensed Consolidated Balance Sheets | ||||||||||
(Dollars in Thousands) | ||||||||||
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
||||||
Assets | ||||||||||
Interest earning assets | ||||||||||
Federal funds sold | 34,453 | 161,704 | 401,672 | 71,576 | 115,794 | |||||
Interest earning deposits | 6,672 | 10,893 | 14,276 | 6,925 | 6,295 | |||||
Federal Home Loan Bank stock | 53,826 | 53,826 | 34,509 | 34,509 | 34,509 | |||||
Investment securities, available for sale | 527,054 | 535,319 | 547,251 | 865,168 | 905,813 | |||||
Investment securities, held to maturity | 1,904,281 | 1,925,725 | 1,945,638 | 1,966,483 | 1,983,496 | |||||
Loans held for sale | 2,440 | 922 | 1,418 | 2,828 | 6,933 | |||||
Gross loans held for investment (HFI) | 4,822,840 | 4,618,175 | 4,417,630 | 4,359,002 | 4,266,260 | |||||
Total Interest earning assets | 7,351,566 | 7,306,564 | 7,362,394 | 7,306,491 | 7,319,100 | |||||
Non-interest earning assets | ||||||||||
Allowance for credit losses | (52,215) | (50,387) | (50,029) | (49,699) | (49,976) | |||||
Cash and due from banks | 106,691 | 100,206 | 112,772 | 98,843 | 109,349 | |||||
Cash value of life insurance | 36,773 | 36,455 | 36,157 | 149,212 | 148,171 | |||||
Other assets | 165,656 | 160,593 | 177,061 | 152,280 | 133,476 | |||||
Goodwill | 155,211 | 155,211 | 155,211 | 155,211 | 155,211 | |||||
Other intangible assets | 11,910 | 12,754 | 13,626 | 14,530 | 15,433 | |||||
Premises and equipment, net | 93,695 | 94,303 | 94,583 | 94,716 | 95,053 | |||||
Interest receivable | 43,240 | 40,008 | 38,710 | 37,850 | 37,536 | |||||
Total non-interest earning assets | 560,961 | 549,143 | 578,091 | 652,943 | 644,253 | |||||
Total assets | 7,912,527 | 7,855,707 | 7,940,485 | 7,959,434 | 7,963,353 | |||||
Liabilities | ||||||||||
Savings and money market deposits | 3,364,726 | 3,350,673 | 3,369,149 | 3,322,788 | 3,289,474 | |||||
Time deposits | 1,178,389 | 1,136,121 | 1,179,739 | 1,250,606 | 1,249,803 | |||||
Borrowings | 1,229,165 | 1,219,812 | 1,217,020 | 1,214,016 | 1,186,407 | |||||
Repurchase agreements | 128,169 | 139,309 | 136,030 | 142,494 | 165,632 | |||||
Subordinated notes | 55,668 | 55,634 | 55,543 | 59,007 | 58,970 | |||||
Junior subordinated debentures issued to capital trusts | 57,369 | 57,315 | 57,258 | 57,201 | 57,143 | |||||
Total interest earning liabilities | 6,013,486 | 5,958,864 | 6,014,739 | 6,046,112 | 6,007,429 | |||||
Non-interest bearing deposits | 1,087,040 | 1,093,076 | 1,116,005 | 1,126,703 | 1,170,055 | |||||
Interest payable | 11,240 | 7,853 | 22,249 | 16,281 | 12,739 | |||||
Other liabilities | 74,096 | 74,664 | 68,680 | 76,969 | 63,887 | |||||
Total liabilities | 7,185,862 | 7,134,457 | 7,221,673 | 7,266,065 | 7,254,110 | |||||
Stockholders' Equity | ||||||||||
Preferred stock | - | - | - | - | - | |||||
Common stock | - | - | - | - | - | |||||
Additional paid-in capital | 357,673 | 356,599 | 356,400 | 355,478 | 354,953 | |||||
Retained earnings | 442,977 | 435,927 | 429,021 | 461,325 | 452,209 | |||||
Accumulated other comprehensive income (loss) | (73,985) | (71,276) | (66,609) | (123,434) | (97,919) | |||||
Total stockholders' equity | 726,665 | 721,250 | 718,812 | 693,369 | 709,243 | |||||
Total liabilities and stockholders' equity | $ | 7,912,527 | $ | 7,855,707 | $ | 7,940,485 | $ | 7,959,434 | $ | 7,963,353 |
Loans and Deposits | |||||||||
(Dollars in Thousands, Unaudited) | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | % Change | ||||
2024 | 2024 | 2023 | 2023 | 2023 | Q2'24 vs Q1'24 | Q2'24 vs Q2'23 | |||
Commercial: | |||||||||
Commercial real estate | 2,117,772 | 1,984,723 | 1,962,097 | 1,916,056 | 1,859,285 | 7 | % | 14 | % |
Commercial & Industrial | 786,788 | 765,043 | 712,863 | 673,188 | 646,994 | 3 | % | 22 | % |
Total commercial | 2,904,560 | 2,749,766 | 2,674,960 | 2,589,244 | 2,506,279 | 6 | % | 16 | % |
Residential Real estate | 797,956 | 782,071 | 681,136 | 675,399 | 674,751 | 2 | % | 18 | % |
Mortgage warehouse | 68,917 | 56,548 | 45,078 | 65,923 | 82,345 | 22 | % | (16) | % |
Consumer | 1,051,407 | 1,029,790 | 1,016,456 | 1,028,436 | 1,002,885 | 2 | % | 5 | % |
Total loans held for investment | 4,822,840 | 4,618,175 | 4,417,630 | 4,359,002 | 4,266,260 | 4 | % | 13 | % |
Loans held for sale | 2,440 | 922 | 1,418 | 2,828 | 6,933 | 165 | % | (65) | % |
Total loans | 4,825,280 | 4,619,097 | 4,419,048 | 4,361,830 | 4,273,193 | 4 | % | 13 | % |
Deposits: | |||||||||
Interest bearing deposits | |||||||||
Savings and money market deposits | 3,364,726 | 3,350,673 | 3,369,149 | 3,322,788 | 3,289,474 | - | % | 2 | % |
Time deposits | 1,178,389 | 1,136,121 | 1,179,739 | 1,250,606 | 1,249,803 | 4 | % | (6) | % |
Total Interest bearing deposits | 4,543,115 | 4,486,794 | 4,548,888 | 4,573,394 | 4,539,277 | 1 | % | - | % |
Non-interest bearing deposits | |||||||||
Non-interest bearing deposits | 1,087,040 | 1,093,076 | 1,116,005 | 1,126,703 | 1,170,055 | (1) | % | (7) | % |
Total deposits | 5,630,155 | 5,579,870 | 5,664,893 | 5,700,097 | 5,709,332 | 1 | % | (1) | % |
Average Balance Sheet | ||||||||||||||||||
(Dollars in Thousands, Unaudited) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||
Average Balance |
Interest(4)
|
Average
Rate(4)
|
Average Balance |
Interest(4)
|
Average
Rate(4)
|
Average Balance |
Interest(4)
|
Average
Rate(4)
|
||||||||||
Assets | ||||||||||||||||||
Interest earning assets | ||||||||||||||||||
Federal funds sold | $ | 47,805 | $ | 645 | 5.43 | % | $ | 322,058 | $ | 4,387 | 5.48 | % | $ | 30,926 | $ | 376 | 4.88 | % |
Interest earning deposits | 7,662 | 93 | 4.88 | % | 9,025 | 110 | 4.90 | % | 9,002 | 99 | 4.41 | % | ||||||
Federal Home Loan Bank stock | 53,827 | 1,521 | 11.36 | % | 37,949 | 784 | 8.31 | % | 33,322 | 508 | 6.11 | % | ||||||
Investment securities - taxable (1)
|
1,309,305 | 6,465 | 1.99 | % | 1,326,246 | 6,578 | 1.99 | % | 1,673,439 | 8,232 | 1.97 | % | ||||||
Investment securities - non-taxable (1)
|
1,132,065 | 8,072 | 2.87 | % | 1,149,957 | 8,166 | 2.86 | % | 1,240,931 | 8,935 | 2.89 | % | ||||||
Total investment securities | 2,441,370 | 14,537 | 2.39 | % | 2,476,203 | 14,744 | 2.39 | % | 2,914,370 | 17,167 | 2.36 | % | ||||||
Loans receivable (2) (3)
|
4,662,124 | 72,208 | 6.23 | % | 4,448,324 | 67,307 | 6.09 | % | 4,225,020 | 60,843 | 5.78 | % | ||||||
Total interest earning assets | 7,212,788 | 89,004 | 4.96 | % | 7,293,559 | 87,332 | 4.82 | % | 7,212,640 | 78,993 | 4.39 | % | ||||||
Non-interest earning assets | ||||||||||||||||||
Cash and due from banks | 108,319 | 105,795 | 102,935 | |||||||||||||||
Allowance for credit losses | (50,334) | (49,960) | (49,481) | |||||||||||||||
Other assets | 508,555 | 486,652 | 573,932 | |||||||||||||||
Total average assets | $ | 7,779,328 | $ | 7,836,046 | $ | 7,840,026 | ||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||
Interest bearing deposits | $ | 3,334,490 | $ | 17,405 | 2.10 | % | $ | 3,323,227 | $ | 15,889 | 1.92 | % | $ | 3,329,899 | $ | 10,388 | 1.25 | % |
Time deposits | 1,134,590 | 11,042 | 3.91 | % | 1,176,921 | 12,101 | 4.14 | % | 1,115,175 | 8,570 | 3.08 | % | ||||||
Borrowings | 1,184,172 | 10,187 | 3.46 | % | 1,200,728 | 10,904 | 3.65 | % | 1,176,702 | 9,035 | 3.08 | % | ||||||
Repurchase agreements | 125,144 | 1,026 | 3.30 | % | 138,052 | 1,026 | 2.99 | % | 140,606 | 683 | 1.95 | % | ||||||
Subordinated notes | 55,647 | 829 | 5.99 | % | 55,558 | 831 | 6.02 | % | 58,946 | 881 | 5.99 | % | ||||||
Junior subordinated debentures issued to capital trusts | 57,335 | 1,213 | 8.51 | % | 57,279 | 1,225 | 8.60 | % | 57,110 | 1,151 | 8.08 | % | ||||||
Total interest bearing liabilities | 5,891,378 | 41,702 | 2.85 | % | 5,951,765 | 41,976 | 2.84 | % | 5,878,438 | 30,708 | 2.10 | % | ||||||
Non-interest bearing liabilities | ||||||||||||||||||
Demand deposits | 1,080,676 | 1,077,183 | 1,186,520 | |||||||||||||||
Accrued interest payable and other liabilities | 80,942 | 82,015 | 64,115 | |||||||||||||||
Stockholders' equity | 726,332 | 725,083 | 710,953 | |||||||||||||||
Total average liabilities and stockholders' equity | $ | 7,779,328 | $ | 7,836,046 | $ | 7,840,026 | ||||||||||||
Net FTE interest income (non-GAAP) (5)
|
$ | 47,302 | $ | 45,356 | $ | 48,285 | ||||||||||||
Less FTE adjustments (4)
|
(2,023) | (2,068) | (2,125) | |||||||||||||||
Net Interest Income | $ | 45,279 | $ | 43,288 | $ | 46,160 | ||||||||||||
Net FTE interest margin (Non-GAAP) (4)(5)
|
2.64 | % | 2.50 | % | 2.69 | % | ||||||||||||
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
|
||||||||||||||||||
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
|
||||||||||||||||||
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
|
||||||||||||||||||
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
|
||||||||||||||||||
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
|
Credit Quality | ||||||||||||||
(Dollars in Thousands Except Ratios, Unaudited) | ||||||||||||||
Quarter Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | % Change | |||||||||
2024 | 2024 | 2023 | 2023 | 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | ||||||||
Non-accrual loans | ||||||||||||||
Commercial | $ | 4,321 | $ | 5,493 | $ | 7,362 | $ | 6,919 | $ | 8,275 | (21) | % | (48) | % |
Residential Real estate | 8,489 | 8,725 | 8,058 | 7,644 | 7,927 | (3) | % | 7 | % | |||||
Mortgage warehouse | - | - | - | - | - | - | % | - | % | |||||
Consumer | 5,453 | 4,835 | 4,290 | 4,493 | 4,594 | 13 | % | 19 | % | |||||
Total non-accrual loans | $ | 18,263 | $ | 19,053 | $ | 19,710 | $ | 19,056 | $ | 20,796 | (4) | % | (7) | % |
90 days and greater delinquent - accruing interest | $ | 1,058 | $ | 108 | $ | 559 | $ | 392 | $ | 1,313 | 880 | % | (19) | % |
Total non-performing loans | $ | 19,321 | $ | 19,161 | $ | 20,269 | $ | 19,448 | $ | 22,109 | 1 | % | (5) | % |
Other real estate owned | ||||||||||||||
Commercial | $ | 1,111 | $ | 1,124 | $ | 1,124 | $ | 1,287 | $ | 1,567 | (1) | % | (29) | % |
Residential Real estate | - | - | 182 | 32 | 107 | - | % | (100) | % | |||||
Mortgage warehouse | - | - | - | - | - | - | % | - | % | |||||
Consumer | 57 | 50 | 205 | 72 | 7 | 14 | % | 714 | % | |||||
Total other real estate owned | $ | 1,168 | $ | 1,174 | $ | 1,511 | $ | 1,391 | $ | 1,681 | (1) | % | (31) | % |
Total non-performing assets | $ | 20,489 | $ | 20,335 | $ | 21,780 | $ | 20,839 | $ | 23,790 | 1 | % | (14) | % |
Loan data: | ||||||||||||||
Accruing 30 to 89 days past due loans | 19,785 | 15,154 | 16,595 | 13,089 | 10,913 | 31 | % | 81 | % | |||||
Substandard loans | $ | 51,221 | $ | 47,469 | $ | 49,526 | $ | 47,563 | $ | 41,484 | 8 | % | 23 | % |
Net charge-offs (recoveries) | ||||||||||||||
Commercial | 54 | (57) | 233 | 142 | 101 | 195 | % | (47) | % | |||||
Residential Real estate | (5) | (5) | 21 | (39) | (10) | - | % | 50 | % | |||||
Mortgage warehouse | - | - | - | - | - | - | % | - | % | |||||
Consumer | 535 | 488 | 531 | 619 | 183 | 10 | % | 192 | % | |||||
Total net charge-offs | $ | 584 | $ | 426 | $ | 785 | $ | 722 | $ | 274 | 37 | % | 113 | % |
Allowance for credit losses | ||||||||||||||
Commercial | 31,941 | 30,514 | 29,736 | 29,472 | 30,354 | 5 | % | 5 | % | |||||
Residential Real estate | 2,588 | 2,655 | 2,503 | 2,794 | 3,648 | (3) | % | (29) | % | |||||
Mortgage warehouse | 736 | 659 | 481 | 714 | 893 | 12 | % | (18) | % | |||||
Consumer | 16,950 | 16,559 | 17,309 | 16,719 | 15,081 | 2 | % | 12 | % | |||||
Total allowance for credit losses | $ | 52,215 | $ | 50,387 | $ | 50,029 | $ | 49,699 | $ | 49,976 | 4 | % | 4 | % |
Credit quality ratios | ||||||||||||||
Non-accrual loans to HFI loans | 0.38 | % | 0.41 | % | 0.45 | % | 0.44 | % | 0.49 | % | ||||
Non-performing assets to total assets | 0.26 | % | 0.26 | % | 0.27 | % | 0.26 | % | 0.30 | % | ||||
Annualized net charge-offs of average total loans | 0.05 | % | 0.04 | % | 0.07 | % | 0.07 | % | 0.04 | % | ||||
Allowance for credit losses to HFI loans | 1.08 | % | 1.09 | % | 1.13 | % | 1.14 | % | 1.17 | % |
Non-GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin | |||||||||||
(Dollars in Thousands, Unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||
Interest income (GAAP) | (A) | $ | 86,981 | $ | 85,264 | $ | 83,514 | $ | 80,125 | $ | 76,868 |
Taxable-equivalent adjustment: | |||||||||||
Investment securities - tax exempt (1)
|
$ | 1,695 | $ | 1,715 | $ | 1,799 | $ | 1,861 | $ | 1,876 | |
Loan receivable (2)
|
$ | 328 | $ | 353 | $ | 314 | $ | 251 | $ | 249 | |
Interest income (non-GAAP) | (B) | $ | 89,004 | $ | 87,332 | $ | 85,627 | $ | 82,237 | $ | 78,993 |
Interest expense (GAAP) | (C) | $ | 41,702 | $ | 41,976 | $ | 41,257 | $ | 38,035 | $ | 30,708 |
Net interest income (GAAP) | (D) =(A) - (C) | $ | 45,279 | $ | 43,288 | $ | 42,257 | $ | 42,090 | $ | 46,160 |
Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 47,302 | $ | 45,356 | $ | 44,370 | $ | 44,202 | $ | 48,285 |
Average interest earning assets | (F) | 7,212,788 | 7,293,559 | 7,239,034 | 7,286,611 | 7,212,640 | |||||
Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 2.64 | % | 2.50 | % | 2.43 | % | 2.41 | % | 2.69 | % |
(1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
|
|||||||||||
(2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
|
|||||||||||
*Annualized |
Non-GAAP Reconciliation of Return on Average Tangible Common Equity | |||||||||||
(Dollars in Thousands, Unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||
Net income (loss) (GAAP) | (A) | $ | 14,140 | $ | 13,991 | $ | (25,215) | $ | 16,205 | $ | 18,763 |
Average stockholders' equity | (B) | $ | 726,332 | $ | 725,083 | $ | 702,793 | $ | 715,485 | $ | 710,953 |
Average intangible assets | (C) | 167,659 | 168,519 | 169,401 | 170,301 | 171,177 | |||||
Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 558,673 | $ | 556,564 | $ | 533,392 | $ | 545,184 | $ | 539,776 |
Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | 10.18 | % | 10.11 | % | (18.76) | % | 11.79 | % | 13.94 | % |
*Annualized |
Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets | |||||||||||
(Dollars in Thousands, Unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||
Total stockholders' equity (GAAP) | (A) | $ | 726,665 | $ | 721,250 | $ | 718,812 | $ | 693,369 | $ | 709,243 |
Intangible assets (end of period) | (B) | 167,121 | 167,965 | 168,837 | 169,741 | 170,644 | |||||
Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 559,544 | $ | 553,285 | $ | 549,975 | $ | 523,628 | $ | 538,599 |
Total assets (GAAP) | (D) | 7,912,527 | 7,855,707 | 7,940,485 | 7,959,434 | 7,963,353 | |||||
Intangible assets (end of period) | (B) | 167,121 | 167,965 | 168,837 | 169,741 | 170,644 | |||||
Total tangible assets (non-GAAP) | (E) = (D) - (B) | $ | 7,745,406 | $ | 7,687,742 | $ | 7,771,648 | $ | 7,789,693 | $ | 7,792,709 |
Tangible common equity to tangible assets (Non-GAAP) | (G) = (C) / (E) | 7.22 | % | 7.20 | % | 7.08 | % | 6.72 | % | 6.91 | % |
Non-GAAP Reconciliation of Tangible Book Value Per Share | |||||||||||
(Dollars in Thousands, Unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||
Total stockholders' equity (GAAP) | (A) | $ | 726,665 | $ | 721,250 | $ | 718,812 | $ | 693,369 | $ | 709,243 |
Intangible assets (end of period) | (B) | 167,121 | 167,965 | 168,837 | 169,741 | 170,644 | |||||
Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 559,544 | $ | 553,285 | $ | 549,975 | $ | 523,628 | $ | 538,599 |
Common shares outstanding | (D) | 43,712,059 | 43,726,380 | 43,652,063 | 43,648,501 | 43,645,216 | |||||
Tangible book value per common share (non-GAAP) | (E) = (C) / (D) | $ | 12.80 | $ | 12.65 | $ | 12.60 | $ | 12.00 | $ | 12.34 |