Delaware | 001-11713 | 22-3412577 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATION AND FINANCIAL CONDITION |
ITEM 8.01 | OTHER EVENTS |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) | EXHIBITS | |
99.1 | Press Release dated | July 27, 2017 |
OCEANFIRST FINANCIAL CORP. | ||
Dated: | July 28, 2017 | /s/ Michael J. Fitzpatrick |
Michael J. Fitzpatrick | ||
Executive Vice President and Chief Financial Officer |
Exhibit | Description | ||
99.1 | Press Release dated | July 27, 2017 |
Press Release |
• | Total loans grew $47.5 million, including $26.6 million in consumer loan growth and $20.9 million in commercial loan growth, while asset quality improved as non-performing loans decreased $5.4 million, or 25.0%, to $16.3 million, and non-performing loans as a percentage of total loans decreased to 0.42%, as compared to 0.56% in the prior linked quarter. |
• | The Company maintained a loan to deposit ratio of 92.6% while cost of deposits increased one basis point from the prior linked quarter to 0.28%. |
• | The Company successfully completed the consolidation of 15 branches throughout central and southern New Jersey, with total expected annualized cost savings of $6.1 million. |
June 30, 2017 | March 31, 2017 | December 31, 2016 | June 30, 2016 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 107,660 | $ | 175,252 | $ | 301,373 | $ | 66,222 | ||||||||
Securities available-for-sale, at estimated fair value | 62,154 | 47,104 | 12,224 | 12,509 | ||||||||||||
Securities held-to-maturity, net (estimated fair value of $724,250 at June 30, 2017, $695,564 at March 31, 2017, $598,119 at December 31, 2016, and $520,971 at June 30, 2016) | 720,511 | 695,918 | 598,691 | 513,721 | ||||||||||||
Federal Home Loan Bank of New York stock, at cost | 20,358 | 19,253 | 19,313 | 21,128 | ||||||||||||
Loans receivable, net | 3,868,805 | 3,825,600 | 3,803,443 | 3,130,046 | ||||||||||||
Loans held-for-sale | 168 | 283 | 1,551 | 5,310 | ||||||||||||
Interest and dividends receivable | 13,036 | 12,258 | 11,989 | 10,143 | ||||||||||||
Other real estate owned | 8,898 | 8,774 | 9,803 | 9,791 | ||||||||||||
Premises and equipment, net | 59,509 | 70,806 | 71,385 | 49,392 | ||||||||||||
Servicing asset | 181 | 203 | 228 | 664 | ||||||||||||
Bank Owned Life Insurance | 133,572 | 132,789 | 132,172 | 105,929 | ||||||||||||
Deferred tax asset | 29,804 | 33,652 | 38,787 | 37,052 | ||||||||||||
Assets held for sale | 6,114 | 360 | 360 | 669 | ||||||||||||
Other assets | 13,110 | 15,873 | 9,745 | 13,912 | ||||||||||||
Core deposit intangible | 9,887 | 10,400 | 10,924 | 3,903 | ||||||||||||
Goodwill | 148,433 | 147,815 | 145,064 | 67,102 | ||||||||||||
Total assets | $ | 5,202,200 | $ | 5,196,340 | $ | 5,167,052 | $ | 4,047,493 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Deposits | $ | 4,176,909 | $ | 4,198,663 | $ | 4,187,750 | $ | 3,206,262 | ||||||||
Securities sold under agreements to repurchase with retail customers | 75,050 | 77,207 | 69,935 | 67,673 | ||||||||||||
Federal Home Loan Bank advances | 277,541 | 250,021 | 250,498 | 312,603 | ||||||||||||
Other borrowings | 56,623 | 56,591 | 56,559 | 22,500 | ||||||||||||
Advances by borrowers for taxes and insurance | 15,036 | 14,876 | 14,030 | 9,828 | ||||||||||||
Other liabilities | 13,738 | 16,302 | 16,242 | 19,369 | ||||||||||||
Total liabilities | 4,614,897 | 4,613,660 | 4,595,014 | 3,638,235 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued | — | — | — | — | ||||||||||||
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 shares issued and 32,528,658, 32,465,413, 32,136,892, and 25,748,898 shares outstanding at June 30, 2017, March 31, 2017, December 31, 2016, and June 30, 2016, respectively | 336 | 336 | 336 | 336 | ||||||||||||
Additional paid-in capital | 353,296 | 352,316 | 364,433 | 308,460 | ||||||||||||
Retained earnings | 258,470 | 256,045 | 238,192 | 230,895 | ||||||||||||
Accumulated other comprehensive loss | (5,198 | ) | (5,382 | ) | (5,614 | ) | (5,798 | ) | ||||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (2,620 | ) | (2,690 | ) | (2,761 | ) | (2,903 | ) | ||||||||
Treasury stock, 1,038,114, 1,101,359, 1,429,880, and 7,817,874 shares at June 30, 2017, March 31, 2017, December 31, 2016, and June 30, 2016, respectively | (16,981 | ) | (17,945 | ) | (22,548 | ) | (121,732 | ) | ||||||||
Common stock acquired by Deferred Compensation Plan | (176 | ) | (316 | ) | (313 | ) | (308 | ) | ||||||||
Deferred Compensation Plan Liability | 176 | 316 | 313 | 308 | ||||||||||||
Total stockholders’ equity | 587,303 | 582,680 | 572,038 | 409,258 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 5,202,200 | $ | 5,196,340 | $ | 5,167,052 | $ | 4,047,493 |
For the Three Months Ended, | For the Six Months Ended | |||||||||||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||||
|--------------------- (unaudited) ---------------------| | |------------- (unaudited) -------------| | |||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 42,608 | $ | 41,742 | $ | 30,521 | $ | 84,350 | $ | 51,556 | ||||||||||
Mortgage-backed securities | 2,791 | 2,660 | 1,708 | 5,451 | 3,123 | |||||||||||||||
Investment securities and other | 1,480 | 1,612 | 912 | 3,092 | 1,535 | |||||||||||||||
Total interest income | 46,879 | 46,014 | 33,141 | 92,893 | 56,214 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 2,914 | 2,781 | 1,771 | 5,695 | 3,042 | |||||||||||||||
Borrowed funds | 1,791 | 1,750 | 1,356 | 3,541 | 2,599 | |||||||||||||||
Total interest expense | 4,705 | 4,531 | 3,127 | 9,236 | 5,641 | |||||||||||||||
Net interest income | 42,174 | 41,483 | 30,014 | 83,657 | 50,573 | |||||||||||||||
Provision for loan losses | 1,165 | 700 | 662 | 1,865 | 1,225 | |||||||||||||||
Net interest income after provision for loan losses | 41,009 | 40,783 | 29,352 | 81,792 | 49,348 | |||||||||||||||
Other income: | ||||||||||||||||||||
Bankcard services revenue | 1,837 | 1,579 | 1,211 | 3,416 | 2,062 | |||||||||||||||
Wealth management revenue | 565 | 516 | 621 | 1,081 | 1,171 | |||||||||||||||
Fees and service charges | 3,658 | 3,807 | 2,597 | 7,465 | 4,470 | |||||||||||||||
Net loss on sale of investment securities available-for-sale | — | — | (12 | ) | — | (12 | ) | |||||||||||||
Net gain on sales of loans available-for-sale | 15 | 42 | 170 | 57 | 349 | |||||||||||||||
Net gain (loss) from other real estate operations | 105 | (733 | ) | (313 | ) | (628 | ) | (719 | ) | |||||||||||
Income from Bank Owned Life Insurance | 783 | 772 | 542 | 1,555 | 861 | |||||||||||||||
Other | 10 | 12 | 67 | 23 | 77 | |||||||||||||||
Total other income | 6,973 | 5,995 | 4,883 | 12,969 | 8,259 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and employee benefits | 15,328 | 16,138 | 11,432 | 31,466 | 19,898 | |||||||||||||||
Occupancy | 2,641 | 2,767 | 2,011 | 5,409 | 3,637 | |||||||||||||||
Equipment | 1,703 | 1,698 | 1,184 | 3,400 | 2,153 | |||||||||||||||
Marketing | 730 | 740 | 543 | 1,470 | 794 | |||||||||||||||
Federal deposit insurance | 705 | 661 | 723 | 1,366 | 1,252 | |||||||||||||||
Data processing | 2,046 | 2,396 | 1,881 | 4,442 | 3,146 | |||||||||||||||
Check card processing | 815 | 953 | 505 | 1,768 | 925 | |||||||||||||||
Professional fees | 1,095 | 960 | 700 | 2,055 | 1,198 | |||||||||||||||
Other operating expense | 2,951 | 2,644 | 2,217 | 5,595 | 3,493 | |||||||||||||||
Federal Home Loan Bank prepayment fee | — | — | 136 | — | 136 | |||||||||||||||
Amortization of core deposit intangible | 513 | 524 | 125 | 1,037 | 138 | |||||||||||||||
Branch consolidation expenses | 5,451 | 33 | — | 5,484 | — | |||||||||||||||
Merger related expenses | 3,155 | 1,447 | 7,189 | 4,602 | 8,591 | |||||||||||||||
Total operating expenses | 37,133 | 30,961 | 28,646 | 68,094 | 45,361 | |||||||||||||||
Income before provision for income taxes | 10,849 | 15,817 | 5,589 | 26,667 | 12,246 | |||||||||||||||
Provision for income taxes | 3,170 | 3,799 | 1,928 | 6,969 | 4,380 | |||||||||||||||
Net income | $ | 7,679 | $ | 12,018 | $ | 3,661 | $ | 19,698 | $ | 7,866 | ||||||||||
Basic earnings per share | $ | 0.24 | $ | 0.38 | $ | 0.16 | $ | 0.62 | $ | 0.40 | ||||||||||
Diluted earnings per share | $ | 0.23 | $ | 0.36 | $ | 0.16 | $ | 0.59 | $ | 0.39 | ||||||||||
Average basic shares outstanding | 32,122 | 31,901 | 22,478 | 32,014 | 19,694 | |||||||||||||||
Average diluted shares outstanding | 33,138 | 33,090 | 22,880 | 33,111 | 19,996 |
LOANS RECEIVABLE | At | |||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||
Commercial and industrial | $ | 193,759 | $ | 205,720 | $ | 152,810 | $ | 185,633 | $ | 222,355 | ||||||||||||
Commercial real estate - owner- occupied | 557,734 | 533,052 | 534,365 | 493,157 | 523,662 | |||||||||||||||||
Commercial real estate - investor | 1,122,186 | 1,113,964 | 1,134,507 | 1,014,699 | 1,011,354 | |||||||||||||||||
Total commercial | 1,873,679 | 1,852,736 | 1,821,682 | 1,693,489 | 1,757,371 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||
Residential mortgage | 1,667,831 | 1,639,611 | 1,651,695 | 1,061,752 | 1,090,781 | |||||||||||||||||
Residential construction | 78,339 | 76,985 | 65,408 | 46,813 | 48,266 | |||||||||||||||||
Home equity loans and lines | 282,402 | 285,149 | 289,110 | 251,421 | 258,398 | |||||||||||||||||
Other consumer | 1,335 | 1,560 | 1,566 | 1,273 | 1,586 | |||||||||||||||||
Total consumer | 2,029,907 | 2,003,305 | 2,007,779 | 1,361,259 | 1,399,031 | |||||||||||||||||
Total loans | 3,903,586 | 3,856,041 | 3,829,461 | 3,054,748 | 3,156,402 | |||||||||||||||||
Loans in process | (22,589 | ) | (17,976 | ) | (14,249 | ) | (13,842 | ) | (13,119 | ) | ||||||||||||
Deferred origination costs, net | 4,365 | 3,686 | 3,414 | 3,407 | 3,441 | |||||||||||||||||
Allowance for loan losses | (16,557 | ) | (16,151 | ) | (15,183 | ) | (15,617 | ) | (16,678 | ) | ||||||||||||
Loans receivable, net | $ | 3,868,805 | $ | 3,825,600 | $ | 3,803,443 | $ | 3,028,696 | $ | 3,130,046 | ||||||||||||
Mortgage loans serviced for others | $ | 131,284 | $ | 132,973 | $ | 137,881 | $ | 143,657 | $ | 145,903 | ||||||||||||
At June 30, 2017 Average Yield | ||||||||||||||||||||||
Loan pipeline (1): | ||||||||||||||||||||||
Commercial | 4.20 | % | $ | 61,287 | $ | 73,793 | $ | 99,060 | $ | 64,976 | $ | 48,897 | ||||||||||
Residential mortgage and construction | 3.74 | 64,510 | 57,600 | 38,486 | 39,252 | 30,520 | ||||||||||||||||
Home equity loans and lines | 4.40 | 11,194 | 7,879 | 6,522 | 5,099 | 5,594 | ||||||||||||||||
Total | 4.00 | $ | 136,991 | $ | 139,272 | $ | 144,068 | $ | 109,327 | $ | 85,011 |
For the three months ended | ||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||||
Average Yield | ||||||||||||||||||||||
Loan originations: | ||||||||||||||||||||||
Commercial | 4.52 | % | $ | 115,048 | (2) | $ | 106,896 | $ | 105,062 | $ | 63,310 | $ | 59,543 | |||||||||
Residential mortgage and construction | 3.97 | 79,610 | 64,452 | 62,087 | 41,170 | 40,295 | ||||||||||||||||
Home equity loans and lines | 4.38 | 20,539 | 12,500 | 11,790 | 11,007 | 10,067 | ||||||||||||||||
Total | 4.30 | $ | 215,197 | $ | 183,848 | $ | 178,939 | $ | 115,487 | $ | 109,905 | |||||||||||
Loans sold | $ | 865 | (3) | $ | 1,907 | $ | 12,098 | (4) | $ | 17,787 | (5) | $ | 10,303 |
(1) | Loan pipeline includes pending loan applications and loans approved but not funded |
(2) | Includes purchased loans totaling $16.6 million |
(3) | Excludes the sale of under-performing residential loans of $4.3 million |
(4) | Excludes the sale of under-performing loans of $21.0 million |
(5) | Excludes the sale of under-performing loans of $12.8 million |
DEPOSITS | At | ||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||
Type of Account | |||||||||||||||||||
Non-interest-bearing | $ | 770,057 | $ | 806,728 | $ | 782,504 | $ | 512,957 | $ | 554,709 | |||||||||
Interest-bearing checking | 1,727,828 | 1,629,589 | 1,626,713 | 1,451,083 | 1,310,290 | ||||||||||||||
Money market deposit | 378,538 | 448,093 | 458,911 | 400,054 | 366,942 | ||||||||||||||
Savings | 677,939 | 681,853 | 672,519 | 489,173 | 489,132 | ||||||||||||||
Time deposits | 622,547 | 632,400 | 647,103 | 471,414 | 485,189 | ||||||||||||||
$ | 4,176,909 | $ | 4,198,663 | $ | 4,187,750 | $ | 3,324,681 | $ | 3,206,262 |
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||
ASSET QUALITY | |||||||||||||||||||
Non-performing loans: | |||||||||||||||||||
Commercial and industrial | $ | 68 | $ | 231 | $ | 441 | $ | 1,152 | $ | 964 | |||||||||
Commercial real estate - owner-occupied | 943 | 2,383 | 2,414 | 5,213 | 4,363 | ||||||||||||||
Commercial real estate - investor | 5,608 | 5,118 | 521 | 1,675 | 1,675 | ||||||||||||||
Residential mortgage | 7,936 | 11,993 | 8,126 | 7,017 | 7,102 | ||||||||||||||
Home equity loans and lines | 1,706 | 1,954 | 2,064 | 1,450 | 1,226 | ||||||||||||||
Total non-performing loans | 16,261 | 21,679 | 13,566 | 16,507 | 15,330 | ||||||||||||||
Other real estate owned | 8,898 | 8,774 | 9,803 | 9,107 | 9,791 | ||||||||||||||
Total non-performing assets | $ | 25,159 | $ | 30,453 | $ | 23,369 | $ | 25,614 | $ | 25,121 | |||||||||
Purchased credit-impaired ("PCI") loans | $ | 4,969 | $ | 7,118 | $ | 7,575 | $ | 5,836 | $ | 9,673 | |||||||||
Delinquent loans 30 to 89 days | $ | 25,224 | $ | 18,516 | $ | 22,598 | $ | 8,553 | $ | 15,643 | |||||||||
Troubled debt restructurings: | |||||||||||||||||||
Non-performing (included in total non-performing loans above) | $ | 1,251 | $ | 3,547 | $ | 3,471 | $ | 3,520 | $ | 2,990 | |||||||||
Performing | 34,130 | 26,974 | 27,042 | 26,396 | 28,173 | ||||||||||||||
Total troubled debt restructurings | $ | 35,381 | $ | 30,521 | $ | 30,513 | $ | 29,916 | $ | 31,163 | |||||||||
Allowance for loan losses | $ | 16,557 | $ | 16,151 | $ | 15,183 | $ | 15,617 | $ | 16,678 | |||||||||
Allowance for loan losses as a percent of total loans receivable (1) | 0.42 | % | 0.42 | % | 0.40 | % | 0.51 | % | 0.53 | % | |||||||||
Allowance for loan losses as a percent of total non-performing loans | 101.82 | 74.50 | 111.92 | 94.61 | 108.79 | ||||||||||||||
Non-performing loans as a percent of total loans receivable | 0.42 | 0.56 | 0.35 | 0.54 | 0.48 | ||||||||||||||
Non-performing assets as a percent of total assets | 0.48 | 0.59 | 0.45 | 0.62 | 0.62 |
(1) | The loans acquired from Ocean Shore, Cape, and Colonial American were recorded at fair value. The net credit mark on these loans, not reflected in the allowance for loan losses, was $21,794, $24,002, $25,973, $17,051, and $27,281, at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
Net Charge-offs: | |||||||||||||||||||
Loan charge-offs | $ | (1,299 | ) | $ | (205 | ) | $ | (979 | ) | $ | (2,116 | ) | $ | (223 | ) | ||||
Recoveries on loans | 540 | 473 | 35 | 167 | 25 | ||||||||||||||
Net loan (charge-offs) recoveries | $ | (759 | ) | $ | 268 | $ | (944 | ) | $ | (1,949 | ) | $ | (198 | ) | |||||
Net loan charge-offs to average total loans (annualized) | 0.08 | % | NM* | 0.11 | % | 0.25 | % | 0.03 | % | ||||||||||
Net charge-off detail - (loss) recovery: | |||||||||||||||||||
Commercial | $ | (81 | ) | $ | 311 | $ | (510 | ) | $ | (1,707 | ) | $ | (84 | ) | |||||
Residential mortgage and construction | (716 | ) | (49 | ) | (233 | ) | (161 | ) | (69 | ) | |||||||||
Home equity loans and lines | 39 | 24 | (194 | ) | (83 | ) | (45 | ) | |||||||||||
Other consumer | (1 | ) | (18 | ) | (7 | ) | 2 | — | |||||||||||
Net loan (charge-offs) recoveries | $ | (759 | ) | $ | 268 | $ | (944 | ) | $ | (1,949 | ) | $ | (198 | ) |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Interest-earning deposits and short- term investments | $ | 114,019 | $ | 211 | 0.74 | % | $ | 214,165 | $ | 409 | 0.77 | % | $ | 40,567 | $ | 41 | 0.41 | % | ||||||||||||||
Securities (1) and FHLB stock | 786,964 | 4,060 | 2.07 | 703,712 | 3,863 | 2.23 | 571,463 | 2,579 | 1.82 | |||||||||||||||||||||||
Loans receivable, net (2) | ||||||||||||||||||||||||||||||||
Commercial | 1,850,737 | 22,057 | 4.78 | 1,830,641 | 21,140 | 4.68 | 1,471,159 | 17,783 | 4.86 | |||||||||||||||||||||||
Residential | 1,718,413 | 17,304 | 4.04 | 1,704,035 | 17,339 | 4.13 | 1,076,557 | 10,225 | 3.82 | |||||||||||||||||||||||
Home Equity | 283,124 | 3,225 | 4.57 | 287,335 | 3,245 | 4.58 | 236,937 | 2,498 | 4.24 | |||||||||||||||||||||||
Other | 1,161 | 22 | 7.60 | 1,248 | 18 | 5.85 | 1,011 | 15 | 5.97 | |||||||||||||||||||||||
Allowance for loan loss net of deferred loan fees | (12,518 | ) | — | — | (12,123 | ) | — | — | (13,146 | ) | — | — | ||||||||||||||||||||
Loans Receivable, net | 3,840,917 | 42,608 | 4.45 | 3,811,136 | 41,742 | 4.44 | 2,772,518 | 30,521 | 4.43 | |||||||||||||||||||||||
Total interest-earning assets | 4,741,900 | 46,879 | 3.97 | 4,729,013 | 46,014 | 3.95 | 3,384,548 | 33,141 | 3.94 | |||||||||||||||||||||||
Non-interest-earning assets | 473,736 | 482,058 | 262,554 | |||||||||||||||||||||||||||||
Total assets | $ | 5,215,636 | $ | 5,211,071 | $ | 3,647,102 | ||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 1,716,930 | 1,038 | 0.24 | % | $ | 1,668,545 | 876 | 0.21 | % | $ | 1,166,298 | 503 | 0.17 | % | |||||||||||||||||
Money market | 422,439 | 281 | 0.27 | 445,186 | 311 | 0.28 | 298,530 | 180 | 0.24 | |||||||||||||||||||||||
Savings | 679,806 | 97 | 0.06 | 674,721 | 130 | 0.08 | 434,438 | 41 | 0.04 | |||||||||||||||||||||||
Time deposits | 624,020 | 1,498 | 0.96 | 640,269 | 1,464 | 0.93 | 417,301 | 1,047 | 1.01 | |||||||||||||||||||||||
Total | 3,443,195 | 2,914 | 0.34 | 3,428,721 | 2,781 | 0.33 | 2,316,567 | 1,771 | 0.31 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 73,574 | 25 | 0.14 | 76,351 | 27 | 0.14 | 76,907 | 26 | 0.14 | |||||||||||||||||||||||
FHLB Advances | 259,291 | 1,118 | 1.73 | 250,339 | 1,070 | 1.73 | 287,171 | 1,201 | 1.68 | |||||||||||||||||||||||
Other borrowings | 56,456 | 648 | 4.60 | 56,392 | 653 | 4.70 | 22,500 | 129 | 2.31 | |||||||||||||||||||||||
Total interest-bearing liabilities | 3,832,516 | 4,705 | 0.49 | 3,811,803 | 4,531 | 0.48 | 2,703,145 | 3,127 | 0.47 | |||||||||||||||||||||||
Non-interest-bearing deposits | 772,739 | 791,036 | 529,230 | |||||||||||||||||||||||||||||
Non-interest-bearing liabilities | 23,260 | 29,399 | 26,033 | |||||||||||||||||||||||||||||
Total liabilities | 4,628,515 | 4,632,238 | 3,258,408 | |||||||||||||||||||||||||||||
Stockholders’ equity | 587,121 | 578,833 | 388,694 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 5,215,636 | $ | 5,211,071 | $ | 3,647,102 | ||||||||||||||||||||||||||
Net interest income | $ | 42,174 | $ | 41,483 | $ | 30,014 | ||||||||||||||||||||||||||
Net interest rate spread (3) | 3.48 | % | 3.47 | % | 3.47 | % | ||||||||||||||||||||||||||
Net interest margin (4) | 3.57 | % | 3.56 | % | 3.57 | % | ||||||||||||||||||||||||||
Total cost of deposits (including non- interest-bearing deposits) | 0.28 | % | 0.27 | % | 0.25 | % |
(1) | Amounts are recorded at average amortized cost. |
(2) | Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated loss allowances and includes loans held for sale and non-performing loans. |
For the Six Months Ended, | |||||||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Interest-earning deposits and short-term investments | $ | 163,815 | $ | 620 | 0.76 | % | $ | 44,533 | $ | 70 | 0.32 | % | |||||||||
Securities (1) and FHLB stock | 745,568 | 7,923 | 2.14 | 508,590 | 4,588 | 1.81 | |||||||||||||||
Loans receivable, net (2) | |||||||||||||||||||||
Commercial | 1,840,745 | 43,197 | 4.73 | 1,221,604 | 28,780 | 4.74 | |||||||||||||||
Residential | 1,711,263 | 34,643 | 4.08 | 954,059 | 18,265 | 3.85 | |||||||||||||||
Home Equity | 285,208 | 6,470 | 4.57 | 214,146 | 4,488 | 4.21 | |||||||||||||||
Other | 1,215 | 40 | 6.64 | 756 | 23 | 6.12 | |||||||||||||||
Allowance for loan loss net of deferred loan fees | (12,322 | ) | — | — | (13,396 | ) | — | — | |||||||||||||
Loans Receivable, net | 3,826,109 | 84,350 | 4.45 | 2,377,169 | 51,556 | 4.36 | |||||||||||||||
Total interest-earning assets | 4,735,492 | 92,893 | 3.96 | 2,930,292 | 56,214 | 3.86 | |||||||||||||||
Non-interest-earning assets | 477,874 | 195,768 | |||||||||||||||||||
Total assets | $ | 5,213,366 | $ | 3,126,060 | |||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing checking | $ | 1,692,820 | 1,913 | 0.23 | % | $ | 1,033,091 | 808 | 0.16 | % | |||||||||||
Money market | 433,750 | 591 | 0.27 | 227,428 | 250 | 0.22 | |||||||||||||||
Savings | 677,278 | 227 | 0.07 | 375,293 | 67 | 0.04 | |||||||||||||||
Time deposits | 632,099 | 2,964 | 0.95 | 340,511 | 1,917 | 1.13 | |||||||||||||||
Total | 3,435,947 | 5,695 | 0.33 | 1,976,323 | 3,042 | 0.31 | |||||||||||||||
Securities sold under agreements to repurchase | 74,955 | 52 | 0.14 | 80,207 | 54 | 0.14 | |||||||||||||||
FHLB Advances | 254,840 | 2,186 | 1.73 | 276,547 | 2,284 | 1.66 | |||||||||||||||
Other borrowings | 56,424 | 1,303 | 4.66 | 22,500 | 261 | 2.33 | |||||||||||||||
Total interest-bearing liabilities | 3,822,166 | 9,236 | 0.49 | 2,355,577 | 5,641 | 0.48 | |||||||||||||||
Non-interest-bearing deposits | 781,888 | 436,300 | |||||||||||||||||||
Non-interest-bearing liabilities | 26,312 | 19,836 | |||||||||||||||||||
Total liabilities | 4,630,366 | 2,811,713 | |||||||||||||||||||
Stockholders’ equity | 583,000 | 314,347 | |||||||||||||||||||
Total liabilities and equity | $ | 5,213,366 | $ | 3,126,060 | |||||||||||||||||
Net interest income | $ | 83,657 | $ | 50,573 | |||||||||||||||||
Net interest rate spread (3) | 3.47 | % | 3.38 | % | |||||||||||||||||
Net interest margin (4) | 3.56 | % | 3.47 | % | |||||||||||||||||
Total cost of deposits (including non-interest-bearing deposits) | 0.27 | % | 0.25 | % |
(1) | Amounts are recorded at average amortized cost. |
(2) | Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated loss allowances and includes loans held for sale and non-performing loans. |
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
Selected Financial Condition Data: | ||||||||||||||||||||
Total assets | $ | 5,202,200 | $ | 5,196,340 | $ | 5,167,052 | $ | 4,151,017 | $ | 4,047,493 | ||||||||||
Securities available-for-sale, at estimated fair value | 62,154 | 47,104 | 12,224 | 2,497 | 12,509 | |||||||||||||||
Securities held-to-maturity, net | 720,511 | 695,918 | 598,691 | 470,642 | 513,721 | |||||||||||||||
Federal Home Loan Bank of New York stock | 20,358 | 19,253 | 19,313 | 18,289 | 21,128 | |||||||||||||||
Loans receivable, net | 3,868,805 | 3,825,600 | 3,803,443 | 3,028,696 | 3,130,046 | |||||||||||||||
Deposits | 4,176,909 | 4,198,663 | 4,187,750 | 3,324,681 | 3,206,262 | |||||||||||||||
Federal Home Loan Bank advances | 277,541 | 250,021 | 250,498 | 251,146 | 312,603 | |||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 131,673 | 133,798 | 126,494 | 125,477 | 90,173 | |||||||||||||||
Stockholders' equity | 587,303 | 582,680 | 572,038 | 417,244 | 409,258 |
For the Three Months Ended, | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Interest income | $ | 46,879 | $ | 46,014 | $ | 39,904 | $ | 37,307 | $ | 33,141 | ||||||||||
Interest expense | 4,705 | 4,531 | 4,150 | 3,372 | 3,127 | |||||||||||||||
Net interest income | 42,174 | 41,483 | 35,754 | 33,935 | 30,014 | |||||||||||||||
Provision for loan losses | 1,165 | 700 | 510 | 888 | 662 | |||||||||||||||
Net interest income after provision for loan losses | 41,009 | 40,783 | 35,244 | 33,047 | 29,352 | |||||||||||||||
Other income | 6,973 | 5,995 | 6,257 | 5,896 | 4,883 | |||||||||||||||
Operating expenses | 28,527 | 29,481 | 25,833 | 23,715 | 21,457 | |||||||||||||||
Branch consolidation expenses | 5,451 | 33 | — | — | — | |||||||||||||||
Merger related expenses | 3,155 | 1,447 | 6,632 | 1,311 | 7,189 | |||||||||||||||
Income before provision for income taxes | 10,849 | 15,817 | 9,036 | 13,917 | 5,589 | |||||||||||||||
Provision for income taxes | 3,170 | 3,799 | 2,984 | 4,789 | 1,928 | |||||||||||||||
Net income | $ | 7,679 | $ | 12,018 | $ | 6,052 | $ | 9,128 | $ | 3,661 | ||||||||||
Diluted earnings per share | $ | 0.23 | $ | 0.36 | $ | 0.22 | $ | 0.35 | $ | 0.16 | ||||||||||
Net accretion/amortization of purchase accounting adjustments included in net interest income | $ | 1,899 | $ | 2,175 | $ | 1,385 | $ | 1,637 | $ | 1,267 |
At or For the Three Months Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||
Selected Financial Ratios and Other Data(1): | |||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||
Return on average assets (2) | 0.59 | % | 0.94 | % | 0.53 | % | 0.88 | % | 0.40 | % | |||||
Return on average stockholders' equity (2) | 5.25 | 8.42 | 5.10 | 8.77 | 3.79 | ||||||||||
Return on average tangible stockholders' equity (2) (3) | 7.19 | 11.50 | 6.48 | 10.58 | 4.32 | ||||||||||
Stockholders' equity to total assets | 11.29 | 11.21 | 11.07 | 10.05 | 10.11 | ||||||||||
Tangible stockholders' equity to tangible assets (3) | 8.51 | 8.43 | 8.30 | 8.50 | 8.51 | ||||||||||
Net interest rate spread | 3.48 | 3.47 | 3.31 | 3.49 | 3.47 | ||||||||||
Net interest margin | 3.57 | 3.56 | 3.40 | 3.56 | 3.57 | ||||||||||
Operating expenses to average assets (2) | 2.86 | 2.41 | 2.83 | 2.43 | 3.16 | ||||||||||
Efficiency ratio (2) (4) | 75.55 | 65.21 | 77.28 | 62.83 | 82.09 | ||||||||||
Loans to deposits | 92.62 | 91.11 | 90.82 | 91.10 | 97.62 |
For the Six Months Ended June 30, | ||||||
2017 | 2016 | |||||
Performance Ratios (Annualized): | ||||||
Return on average assets (2) | 0.76 | % | 0.51 | % | ||
Return on average stockholders' equity (2) | 6.81 | 5.03 | ||||
Return on average tangible stockholders' equity (2) (3) | 9.32 | 5.47 | ||||
Net interest rate spread | 3.47 | 3.38 | ||||
Net interest margin | 3.56 | 3.47 | ||||
Operating expenses to average assets (2) | 2.63 | 2.92 | ||||
Efficiency ratio (2) (4) | 70.47 | 77.10 |
At or For the Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
Wealth Management: | ||||||||||||||||||||
Assets under administration | $ | 214,479 | $ | 215,593 | $ | 218,336 | $ | 221,612 | $ | 221,277 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Cash dividends per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.13 | $ | 0.13 | ||||||||||
Stockholders' equity per common share at end of period | 18.05 | 17.95 | 17.80 | 16.14 | 15.89 | |||||||||||||||
Tangible stockholders' equity per common share at end of period (3) | 13.19 | 13.07 | 12.95 | 13.42 | 13.14 | |||||||||||||||
Number of full-service customer facilities: | 51 | 61 | 61 | 50 | 50 | |||||||||||||||
Quarterly Average Balances | ||||||||||||||||||||
Total securities | $ | 786,964 | $ | 703,712 | $ | 545,302 | $ | 533,809 | $ | 571,463 | ||||||||||
Loans, receivable, net | 3,840,917 | 3,811,136 | 3,282,703 | 3,085,691 | 2,772,518 | |||||||||||||||
Total interest-earning assets | 4,741,900 | 4,729,013 | 4,187,809 | 3,787,545 | 3,384,548 | |||||||||||||||
Total assets | 5,215,636 | 5,211,071 | 4,556,774 | 4,103,835 | 3,647,102 | |||||||||||||||
Interest-bearing transaction deposits | 2,819,175 | 2,788,452 | 2,512,351 | 2,300,589 | 1,899,266 | |||||||||||||||
Time deposits | 624,020 | 640,269 | 527,817 | 477,496 | 417,301 | |||||||||||||||
Total borrowed funds | 389,321 | 383,082 | 379,289 | 358,960 | 386,578 | |||||||||||||||
Total interest-bearing liabilities | 3,832,516 | 3,811,803 | 3,419,457 | 3,137,045 | 2,703,145 | |||||||||||||||
Non-interest bearing deposits | 772,739 | 791,036 | 622,882 | 521,088 | 529,230 | |||||||||||||||
Stockholder’s equity | 587,121 | 578,833 | 471,662 | 414,166 | 388,694 | |||||||||||||||
Total deposits | 4,215,934 | 4,219,757 | 3,663,050 | 3,299,173 | 2,845,797 | |||||||||||||||
Quarterly Yields | ||||||||||||||||||||
Total securities | 2.07 | % | 2.23 | % | 1.91 | % | 1.91 | % | 1.82 | % | ||||||||||
Loans, receivable, net | 4.45 | 4.44 | 4.46 | 4.46 | 4.43 | |||||||||||||||
Total interest-earning assets | 3.97 | 3.95 | 3.79 | 3.92 | 3.94 | |||||||||||||||
Interest-bearing transaction deposits | 0.20 | 0.18 | 0.18 | 0.16 | 0.15 | |||||||||||||||
Time deposits | 0.96 | 0.93 | 0.97 | 0.96 | 1.01 | |||||||||||||||
Total borrowed funds | 1.85 | 1.85 | 1.84 | 1.43 | 1.41 | |||||||||||||||
Total interest-bearing liabilities | 0.49 | 0.48 | 0.48 | 0.43 | 0.47 | |||||||||||||||
Net interest spread | 3.48 | 3.47 | 3.31 | 3.49 | 3.47 | |||||||||||||||
Net interest margin | 3.57 | 3.56 | 3.40 | 3.56 | 3.57 | |||||||||||||||
Total deposits | 0.28 | 0.27 | 0.26 | 0.25 | 0.25 |
(1) | With the exception of end of quarter ratios, all ratios are based on average daily balances. |
(2) | Performance ratios for each period include merger related and branch consolidation expenses. Refer to Other Items - Non-GAAP Reconciliation for impact of merger related and branch consolidation expenses. |
For the three months ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
Core earnings: | ||||||||||||||||||||
Net income | $ | 7,679 | $ | 12,018 | $ | 6,052 | $ | 9,128 | $ | 3,661 | ||||||||||
Add: Merger related expenses | 3,155 | 1,447 | 6,632 | 1,311 | 7,189 | |||||||||||||||
Branch consolidation expense | 5,451 | 33 | — | — | — | |||||||||||||||
Accelerated stock award expense | — | 242 | — | — | — | |||||||||||||||
Loss on sale of investment securities available for sale | — | — | — | — | 12 | |||||||||||||||
Federal Home Loan Bank prepayment fee | — | — | — | — | 136 | |||||||||||||||
Less: Income tax benefit on items | (3,012 | ) | (587 | ) | (2,108 | ) | (172 | ) | (2,311 | ) | ||||||||||
Core earnings | $ | 13,273 | $ | 13,153 | $ | 10,576 | $ | 10,267 | $ | 8,687 | ||||||||||
Core diluted earnings per share | $ | 0.40 | $ | 0.40 | $ | 0.38 | $ | 0.40 | $ | 0.38 | ||||||||||
Core ratios (Annualized): | ||||||||||||||||||||
Return on average assets | 1.02 | % | 1.02 | % | 0.92 | % | 1.00 | % | 0.96 | % | ||||||||||
Return on average tangible stockholder's equity | 12.42 | 12.56 | 11.33 | 11.90 | 10.26 | |||||||||||||||
Efficiency ratio | 58.04 | 61.58 | 61.49 | 59.54 | 61.06 |
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||||
Total stockholders' equity | $ | 587,303 | $ | 582,680 | $ | 572,038 | $ | 417,244 | $ | 409,258 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 148,433 | 147,815 | 145,064 | 66,537 | 67,102 | |||||||||||||||
Core deposit intangible | 9,887 | 10,400 | 10,924 | 3,722 | 3,903 | |||||||||||||||
Tangible stockholders’ equity | $ | 428,983 | $ | 424,465 | $ | 416,050 | $ | 346,985 | $ | 338,253 | ||||||||||
Total assets | $ | 5,202,200 | $ | 5,196,340 | $ | 5,167,052 | $ | 4,151,017 | $ | 4,047,493 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 148,433 | 147,815 | 145,064 | 66,537 | 67,102 | |||||||||||||||
Core deposit intangible | 9,887 | 10,400 | 10,924 | 3,722 | 3,903 | |||||||||||||||
Tangible assets | $ | 5,043,880 | $ | 5,038,125 | $ | 5,011,064 | $ | 4,080,758 | $ | 3,976,488 | ||||||||||
Tangible stockholders' equity to tangible assets | 8.51 | % | 8.43 | % | 8.30 | % | 8.50 | % | 8.51 | % |