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 | April 26, 2018 |
OCEANFIRST FINANCIAL CORP. | ||
Dated: | April 27, 2018 | /s/ Michael J. Fitzpatrick |
Michael J. Fitzpatrick | ||
Executive Vice President and Chief Financial Officer |
Exhibit | Description | ||
Press Release dated | April 26, 2018 |
![]() | Press Release |
• | On January 31, 2018, the Company completed its acquisition of Sun Bancorp Inc. (“Sun”), the holding company of Sun National Bank, which added $2.0 billion to assets, $1.5 billion to loans, and $1.6 billion to deposits. The Company anticipates full integration of Sun’s operations and systems in June 2018. |
• | The Company’s net interest margin increased to 3.70%, as compared to 3.42% in the prior linked quarter, and 3.56% in the comparable prior year period. |
• | The cost of deposits increased only one basis point from the prior linked quarter, to 0.33% and the loan to deposit ratio at March 31, 2018 was 91.7%. |
• | Asset quality improved as non-performing loans decreased $2.6 million, to $18.3 million, from the prior linked quarter and non-performing loans as a percentage of total loans receivable decreased to 0.34%, from 0.52%. |
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 119,364 | $ | 109,613 | $ | 175,252 | ||||||
Debt securities available-for-sale, at estimated fair value | 86,114 | 81,581 | 47,104 | |||||||||
Debt securities held-to-maturity, net (estimated fair value of $971,399 at March 31, 2018, $761,660 at December 31, 2017, and $695,564 at March 31, 2017) | 982,857 | 764,062 | 687,098 | |||||||||
Equity investments, at estimated fair value | 9,565 | 8,700 | 8,588 | |||||||||
Restricted equity investments, at cost | 50,418 | 19,724 | 19,253 | |||||||||
Loans receivable, net | 5,413,780 | 3,965,773 | 3,825,600 | |||||||||
Loans held-for-sale | 167 | 241 | 283 | |||||||||
Interest and dividends receivable | 19,422 | 14,254 | 12,258 | |||||||||
Other real estate owned | 8,265 | 8,186 | 8,774 | |||||||||
Premises and equipment, net | 121,835 | 101,776 | 70,806 | |||||||||
Bank Owned Life Insurance | 218,673 | 134,847 | 132,789 | |||||||||
Deferred tax asset | 60,136 | 1,922 | 33,747 | |||||||||
Assets held for sale | 3,147 | 4,046 | 360 | |||||||||
Other assets | 43,687 | 41,895 | 16,076 | |||||||||
Core deposit intangible | 19,950 | 8,885 | 10,400 | |||||||||
Goodwill | 337,519 | 150,501 | 147,815 | |||||||||
Total assets | $ | 7,494,899 | $ | 5,416,006 | $ | 5,196,203 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Deposits | $ | 5,907,336 | $ | 4,342,798 | $ | 4,198,663 | ||||||
Federal Home Loan Bank advances | 341,646 | 288,691 | 250,021 | |||||||||
Securities sold under agreements to repurchase with retail customers | 82,463 | 79,668 | 77,207 | |||||||||
Other borrowings | 99,359 | 56,519 | 56,591 | |||||||||
Advances by borrowers for taxes and insurance | 11,974 | 11,156 | 14,876 | |||||||||
Other liabilities | 44,661 | 35,233 | 16,302 | |||||||||
Total liabilities | 6,487,439 | 4,814,065 | 4,613,660 | |||||||||
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, 48,105,623 shares issued and 48,105,623, 32,596,893, and 32,465,413 shares outstanding at March 31, 2018, December 31, 2017, and March 31, 2017, respectively | 481 | 336 | 336 | |||||||||
Additional paid-in capital | 751,695 | 354,377 | 352,316 | |||||||||
Retained earnings | 262,779 | 271,023 | 256,045 | |||||||||
Accumulated other comprehensive loss | (5,306 | ) | (5,349 | ) | (5,519 | ) | ||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (2,189 | ) | (2,479 | ) | (2,690 | ) | ||||||
Treasury stock, 0, 969,879, and 1,101,359 shares at March 31, 2018, December 31, 2017, and March 31, 2017, respectively | — | (15,967 | ) | (17,945 | ) | |||||||
Common stock acquired by Deferred Compensation Plan | (84 | ) | (84 | ) | (316 | ) | ||||||
Deferred Compensation Plan Liability | 84 | 84 | 316 | |||||||||
Total stockholders’ equity | 1,007,460 | 601,941 | 582,543 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,494,899 | $ | 5,416,006 | $ | 5,196,203 |
For the Three Months Ended, | ||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||
|-------------------- (unaudited) --------------------| | ||||||||||||
Interest income: | ||||||||||||
Loans | $ | 56,598 | $ | 42,909 | $ | 41,742 | ||||||
Mortgage-backed securities | 3,685 | 2,919 | 2,660 | |||||||||
Debt securities, equity investments and other | 2,554 | 2,078 | 1,612 | |||||||||
Total interest income | 62,837 | 47,906 | 46,014 | |||||||||
Interest expense: | ||||||||||||
Deposits | 4,464 | 3,515 | 2,781 | |||||||||
Borrowed funds | 2,662 | 1,886 | 1,750 | |||||||||
Total interest expense | 7,126 | 5,401 | 4,531 | |||||||||
Net interest income | 55,711 | 42,505 | 41,483 | |||||||||
Provision for loan losses | 1,371 | 1,415 | 700 | |||||||||
Net interest income after provision for loan losses | 54,340 | 41,090 | 40,783 | |||||||||
Other income: | ||||||||||||
Bankcard services revenue | 1,919 | 1,764 | 1,579 | |||||||||
Wealth management revenue | 553 | 528 | 516 | |||||||||
Fees and service charges | 4,674 | 3,891 | 3,807 | |||||||||
Net gain on sales of loans | 617 | 26 | 42 | |||||||||
Net unrealized loss on equity investments | (138 | ) | — | — | ||||||||
Net loss from other real estate operations | (412 | ) | (678 | ) | (733 | ) | ||||||
Income from Bank Owned Life Insurance | 1,141 | 863 | 772 | |||||||||
Other | 556 | 351 | 12 | |||||||||
Total other income | 8,910 | 6,745 | 5,995 | |||||||||
Operating expenses: | ||||||||||||
Compensation and employee benefits | 21,251 | 13,961 | 16,138 | |||||||||
Occupancy | 4,567 | 2,693 | 2,767 | |||||||||
Equipment | 1,903 | 1,763 | 1,698 | |||||||||
Marketing | 561 | 433 | 740 | |||||||||
Federal deposit insurance | 930 | 485 | 661 | |||||||||
Data processing | 3,176 | 2,040 | 2,396 | |||||||||
Check card processing | 989 | 922 | 953 | |||||||||
Professional fees | 1,283 | 1,094 | 960 | |||||||||
Other operating expense | 3,016 | 2,548 | 2,644 | |||||||||
Amortization of core deposit intangible | 832 | 495 | 524 | |||||||||
Branch consolidation (income) expense | (176 | ) | (734 | ) | 33 | |||||||
Merger related expenses | 18,486 | 1,993 | 1,447 | |||||||||
Total operating expenses | 56,818 | 27,693 | 30,961 | |||||||||
Income before provision for income taxes | 6,432 | 20,142 | 15,817 | |||||||||
Provision for income taxes | 1,005 | 10,186 | 3,799 | |||||||||
Net income | $ | 5,427 | $ | 9,956 | $ | 12,018 | ||||||
Basic earnings per share | $ | 0.12 | $ | 0.31 | $ | 0.38 | ||||||
Diluted earnings per share | $ | 0.12 | $ | 0.30 | $ | 0.36 | ||||||
Average basic shares outstanding | 43,880 | 32,225 | 31,901 | |||||||||
Average diluted shares outstanding | 44,846 | 33,168 | 33,090 |
LOANS RECEIVABLE | At | |||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||
Commercial and industrial | $ | 370,711 | $ | 187,645 | $ | 183,510 | $ | 193,759 | $ | 205,720 | ||||||||||||
Commercial real estate - owner - occupied | 763,261 | 569,624 | 555,429 | 557,734 | 533,052 | |||||||||||||||||
Commercial real estate - investor | 2,034,708 | 1,187,482 | 1,134,416 | 1,122,186 | 1,113,964 | |||||||||||||||||
Total commercial | 3,168,680 | 1,944,751 | 1,873,355 | 1,873,679 | 1,852,736 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||
Residential real estate | 1,882,981 | 1,748,925 | 1,729,358 | 1,723,581 | 1,698,620 | |||||||||||||||||
Home equity loans and lines | 371,340 | 281,143 | 277,909 | 282,402 | 285,149 | |||||||||||||||||
Other consumer | 1,844 | 1,295 | 1,426 | 1,335 | 1,560 | |||||||||||||||||
Total consumer | 2,256,165 | 2,031,363 | 2,008,693 | 2,007,318 | 1,985,329 | |||||||||||||||||
Total loans | 5,424,845 | 3,976,114 | 3,882,048 | 3,880,997 | 3,838,065 | |||||||||||||||||
Deferred origination costs, net | 5,752 | 5,380 | 4,645 | 4,365 | 3,686 | |||||||||||||||||
Allowance for loan losses | (16,817 | ) | (15,721 | ) | (16,584 | ) | (16,557 | ) | (16,151 | ) | ||||||||||||
Loans receivable, net | $ | 5,413,780 | $ | 3,965,773 | $ | 3,870,109 | $ | 3,868,805 | $ | 3,825,600 | ||||||||||||
Mortgage loans serviced for others | $ | 109,273 | $ | 121,662 | $ | 121,886 | $ | 131,284 | $ | 132,973 | ||||||||||||
At March 31, 2018 Average Yield | ||||||||||||||||||||||
Loan pipeline (1): | ||||||||||||||||||||||
Commercial | 5.00 | % | $ | 71,982 | $ | 53,859 | $ | 58,189 | $ | 61,287 | $ | 73,793 | ||||||||||
Residential mortgage and construction | 4.18 | 73,513 | 43,482 | 44,510 | 64,510 | 57,600 | ||||||||||||||||
Home equity loans and lines | 5.05 | 11,338 | 7,412 | 8,826 | 11,194 | 7,879 | ||||||||||||||||
Total | 4.62 | % | $ | 156,833 | $ | 104,753 | $ | 111,525 | $ | 136,991 | $ | 139,272 |
For the Three Months Ended | ||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||
Average Yield | ||||||||||||||||||||||
Loan originations: | ||||||||||||||||||||||
Commercial | 4.71 | % | $ | 59,150 | $ | 141,346 | $ | 97,420 | $ | 115,048 | $ | 106,896 | ||||||||||
Residential mortgage and construction | 3.74 | 68,835 | 73,729 | 80,481 | 79,610 | 64,452 | ||||||||||||||||
Home equity loans and lines | 4.79 | 14,891 | 18,704 | 17,129 | 20,539 | 12,500 | ||||||||||||||||
Total | 4.25 | % | $ | 142,876 | $ | 233,779 | $ | 195,030 | $ | 215,197 | $ | 183,848 | ||||||||||
Loans sold | $ | 241 | (2) | $ | 1,422 | (3) | $ | 991 | (4) | $ | 865 | (5) | $ | 1,907 |
(1) | Loan pipeline includes pending loan applications and loans approved but not funded |
(2) | Excludes the sale of SBA loans acquired from Sun and under-performing loans totaling $8.5 million |
(3) | Excludes the sale of under-performing residential loans of $5.8 million |
(4) | Excludes the sale of under-performing residential loans of $3.5 million |
(5) | Excludes the sale of under-performing residential loans of $4.3 million |
DEPOSITS | At | ||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||
Type of Account | |||||||||||||||||||
Non-interest-bearing | $ | 1,117,100 | $ | 756,513 | $ | 781,043 | $ | 770,057 | $ | 806,728 | |||||||||
Interest-bearing checking | 2,330,682 | 1,954,358 | 1,892,832 | 1,727,828 | 1,629,589 | ||||||||||||||
Money market deposit | 613,183 | 363,656 | 384,106 | 378,538 | 448,093 | ||||||||||||||
Savings | 917,288 | 661,167 | 668,370 | 677,939 | 681,853 | ||||||||||||||
Time deposits | 929,083 | 607,104 | 623,908 | 622,547 | 632,400 | ||||||||||||||
$ | 5,907,336 | $ | 4,342,798 | $ | 4,350,259 | $ | 4,176,909 | $ | 4,198,663 |
ASSET QUALITY | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||
Non-performing loans: | |||||||||||||||||||
Commercial and industrial | $ | 1,717 | $ | 503 | $ | 63 | $ | 68 | $ | 231 | |||||||||
Commercial real estate - owner-occupied | 862 | 5,962 | 923 | 943 | 2,383 | ||||||||||||||
Commercial real estate - investor | 7,994 | 8,281 | 8,720 | 5,608 | 5,118 | ||||||||||||||
Residential mortgage | 5,686 | 4,190 | 3,551 | 7,936 | 11,993 | ||||||||||||||
Home equity loans and lines | 1,992 | 1,929 | 1,864 | 1,706 | 1,954 | ||||||||||||||
Total non-performing loans | 18,251 | 20,865 | 15,121 | 16,261 | 21,679 | ||||||||||||||
Other real estate owned | 8,265 | 8,186 | 9,334 | 8,898 | 8,774 | ||||||||||||||
Total non-performing assets | $ | 26,516 | $ | 29,051 | $ | 24,455 | $ | 25,159 | $ | 30,453 | |||||||||
Purchased credit-impaired (“PCI”) loans | $ | 14,352 | $ | 1,712 | $ | 4,867 | $ | 4,969 | $ | 7,118 | |||||||||
Delinquent loans 30 to 89 days | $ | 35,431 | (1) | $ | 20,796 | $ | 24,548 | $ | 25,224 | $ | 18,516 | ||||||||
Troubled debt restructurings: | |||||||||||||||||||
Non-performing (included in total non-performing loans above) | $ | 4,306 | $ | 8,821 | $ | 270 | $ | 1,251 | $ | 3,547 | |||||||||
Performing | 33,806 | 33,313 | 35,808 | 34,130 | 26,974 | ||||||||||||||
Total troubled debt restructurings | $ | 38,112 | $ | 42,134 | $ | 36,078 | $ | 35,381 | $ | 30,521 | |||||||||
Allowance for loan losses | $ | 16,817 | $ | 15,721 | $ | 16,584 | $ | 16,557 | $ | 16,151 | |||||||||
Allowance for loan losses as a percent of total loans receivable (2) | 0.31 | % | 0.40 | % | 0.42 | % | 0.42 | % | 0.42 | % | |||||||||
Allowance for loan losses as a percent of total non-performing loans | 92.14 | 75.35 | 109.68 | 101.82 | 74.50 | ||||||||||||||
Non-performing loans as a percent of total loans receivable | 0.34 | 0.52 | 0.39 | 0.42 | 0.56 | ||||||||||||||
Non-performing assets as a percent of total assets | 0.35 | 0.54 | 0.45 | 0.48 | 0.59 |
(1) | One commercial loan relationship, for $15.0 million, was in the process of renewal at March 31, 2018. Subsequent to quarter-end, the renewal process was completed and the loan returned to current status. |
(2) | The loans acquired from Sun, 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 $40,717, $17,531, $19,810, $21,794, and $24,002 at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively. |
NET CHARGE-OFFS | For the Three Months Ended | ||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||
Net Charge-offs: | |||||||||||||||||||
Loan charge-offs | $ | (533 | ) | $ | (2,523 | ) | $ | (1,357 | ) | $ | (1,299 | ) | $ | (205 | ) | ||||
Recoveries on loans | 258 | 245 | 219 | 540 | 473 | ||||||||||||||
Net loan (charge-offs) recoveries | $ | (275 | ) | $ | (2,278 | ) | $ | (1,138 | ) | $ | (759 | ) | $ | 268 | |||||
Net loan charge-offs to average total loans (annualized) | 0.02 | % | 0.23 | % | 0.12 | % | 0.08 | % | NM* | ||||||||||
Net charge-off detail - (loss) recovery: | |||||||||||||||||||
Commercial | $ | (10 | ) | $ | (1,036 | ) | $ | 68 | $ | (81 | ) | $ | 311 | ||||||
Residential mortgage and construction | (159 | ) | (1,262 | ) | (1,156 | ) | (716 | ) | (49 | ) | |||||||||
Home equity loans and lines | (99 | ) | 28 | (51 | ) | 39 | 24 | ||||||||||||
Other consumer | (7 | ) | (8 | ) | 1 | (1 | ) | (18 | ) | ||||||||||
Net loan (charge-offs) recoveries | $ | (275 | ) | $ | (2,278 | ) | $ | (1,138 | ) | $ | (759 | ) | $ | 268 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
(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 | $ | 100,236 | $ | 209 | 0.84 | % | $ | 155,987 | $ | 391 | 0.99 | % | $ | 214,165 | $ | 409 | 0.77 | % | ||||||||||||||
Securities (1) | 1,056,774 | 6,030 | 2.31 | 874,910 | 4,606 | 2.09 | 703,712 | 3,863 | 2.23 | |||||||||||||||||||||||
Loans receivable, net (2) | ||||||||||||||||||||||||||||||||
Commercial | 2,772,952 | 33,391 | 4.88 | 1,887,319 | 22,087 | 4.64 | 1,830,641 | 21,140 | 4.68 | |||||||||||||||||||||||
Residential | 1,843,804 | 19,037 | 4.19 | 1,743,334 | 17,552 | 3.99 | 1,704,035 | 17,339 | 4.13 | |||||||||||||||||||||||
Home Equity | 342,078 | 4,143 | 4.91 | 278,294 | 3,243 | 4.62 | 287,335 | 3,245 | 4.58 | |||||||||||||||||||||||
Other | 1,458 | 27 | 7.51 | 1,086 | 27 | 9.86 | 1,248 | 18 | 5.85 | |||||||||||||||||||||||
Allowance for loan loss net of deferred loan fees | (10,285 | ) | — | — | (11,993 | ) | — | — | (12,123 | ) | — | — | ||||||||||||||||||||
Loans Receivable, net | 4,950,007 | 56,598 | 4.64 | 3,898,040 | 42,909 | 4.37 | 3,811,136 | 41,742 | 4.44 | |||||||||||||||||||||||
Total interest-earning assets | 6,107,017 | 62,837 | 4.17 | 4,928,937 | 47,906 | 3.86 | 4,729,013 | 46,014 | 3.95 | |||||||||||||||||||||||
Non-interest-earning assets | 735,676 | 475,927 | 482,058 | |||||||||||||||||||||||||||||
Total assets | $ | 6,842,693 | $ | 5,404,864 | $ | 5,211,071 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 2,263,318 | 1,758 | 0.32 | % | $ | 1,944,223 | 1,447 | 0.30 | % | $ | 1,668,545 | 876 | 0.21 | % | |||||||||||||||||
Money market | 525,933 | 550 | 0.42 | 385,720 | 322 | 0.33 | 445,186 | 311 | 0.28 | |||||||||||||||||||||||
Savings | 825,044 | 195 | 0.10 | 662,318 | 59 | 0.04 | 674,721 | 130 | 0.08 | |||||||||||||||||||||||
Time deposits | 820,834 | 1,961 | 0.97 | 619,087 | 1,687 | 1.08 | 640,269 | 1,464 | 0.93 | |||||||||||||||||||||||
Total | 4,435,129 | 4,464 | 0.41 | 3,611,348 | 3,515 | 0.39 | 3,428,721 | 2,781 | 0.33 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 78,931 | 40 | 0.21 | 74,661 | 39 | 0.21 | 76,351 | 27 | 0.14 | |||||||||||||||||||||||
FHLB Advances | 322,120 | 1,513 | 1.90 | 261,018 | 1,146 | 1.74 | 250,339 | 1,070 | 1.73 | |||||||||||||||||||||||
Other borrowings | 80,112 | 1,109 | 5.61 | 56,475 | 701 | 4.92 | 56,392 | 653 | 4.70 | |||||||||||||||||||||||
Total interest-bearing liabilities | 4,916,292 | 7,126 | 0.59 | 4,003,502 | 5,401 | 0.54 | 3,811,803 | 4,531 | 0.48 | |||||||||||||||||||||||
Non-interest-bearing deposits | 1,004,673 | 760,552 | 791,036 | |||||||||||||||||||||||||||||
Non-interest-bearing liabilities | 55,031 | 38,880 | 29,399 | |||||||||||||||||||||||||||||
Total liabilities | 5,975,996 | 4,802,934 | 4,632,238 | |||||||||||||||||||||||||||||
Stockholders’ equity | 866,697 | 601,930 | 578,833 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 6,842,693 | $ | 5,404,864 | $ | 5,211,071 | ||||||||||||||||||||||||||
Net interest income | $ | 55,711 | $ | 42,505 | $ | 41,483 | ||||||||||||||||||||||||||
Net interest rate spread (3) | 3.58 | % | 3.32 | % | 3.47 | % | ||||||||||||||||||||||||||
Net interest margin (4) | 3.70 | % | 3.42 | % | 3.56 | % | ||||||||||||||||||||||||||
Total cost of deposits (including non-interest-bearing deposits) | 0.33 | % | 0.32 | % | 0.27 | % |
(1) | Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and 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. |
(3) | Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
(4) | Net interest margin represents net interest income divided by average interest-earning assets. |
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||
Selected Financial Condition Data: | ||||||||||||||||||||
Total assets | $ | 7,494,899 | $ | 5,416,006 | $ | 5,383,800 | $ | 5,202,086 | $ | 5,196,203 | ||||||||||
Debt securities available-for-sale, at estimated fair value | 86,114 | 81,581 | 67,133 | 62,154 | 47,104 | |||||||||||||||
Debt securities held-to-maturity, net | 982,857 | 764,062 | 733,983 | 711,650 | 687,098 | |||||||||||||||
Equity investments, at estimated fair value | 9,565 | 8,700 | 8,714 | 8,669 | 8,588 | |||||||||||||||
Restricted equity investments, at cost | 50,418 | 19,724 | 18,472 | 20,358 | 19,253 | |||||||||||||||
Loans receivable, net | 5,413,780 | 3,965,773 | 3,870,109 | 3,868,805 | 3,825,600 | |||||||||||||||
Loans held-for-sale | 167 | 241 | 338 | 168 | 283 | |||||||||||||||
Deposits | 5,907,336 | 4,342,798 | 4,350,259 | 4,176,909 | 4,198,663 | |||||||||||||||
Federal Home Loan Bank advances | 341,646 | 288,691 | 259,186 | 277,541 | 250,021 | |||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 181,822 | 136,187 | 131,792 | 131,673 | 133,798 | |||||||||||||||
Stockholders’ equity | 1,007,460 | 601,941 | 596,140 | 587,189 | 582,543 |
For the Three Months Ended, | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Interest income | $ | 62,837 | $ | 47,906 | $ | 48,030 | $ | 46,879 | $ | 46,014 | ||||||||||
Interest expense | 7,126 | 5,401 | 4,974 | 4,705 | 4,531 | |||||||||||||||
Net interest income | 55,711 | 42,505 | 43,056 | 42,174 | 41,483 | |||||||||||||||
Provision for loan losses | 1,371 | 1,415 | 1,165 | 1,165 | 700 | |||||||||||||||
Net interest income after provision for loan losses | 54,340 | 41,090 | 41,891 | 41,009 | 40,783 | |||||||||||||||
Other income | 8,910 | 6,745 | 7,359 | 6,973 | 5,995 | |||||||||||||||
Operating expenses | 38,508 | 26,434 | 27,580 | 28,527 | 29,481 | |||||||||||||||
Branch consolidation (income) expense | (176 | ) | (734 | ) | 1,455 | 5,451 | 33 | |||||||||||||
Merger related expenses | 18,486 | 1,993 | 1,698 | 3,155 | 1,447 | |||||||||||||||
Income before provision for income taxes | 6,432 | 20,142 | 18,517 | 10,849 | 15,817 | |||||||||||||||
Provision for income taxes | 1,005 | 10,186 | 5,700 | 3,170 | 3,799 | |||||||||||||||
Net income | $ | 5,427 | $ | 9,956 | $ | 12,817 | $ | 7,679 | $ | 12,018 | ||||||||||
Diluted earnings per share | $ | 0.12 | $ | 0.30 | $ | 0.39 | $ | 0.23 | $ | 0.36 | ||||||||||
Net accretion/amortization of purchase accounting adjustments included in net interest income | $ | 3,930 | $ | 1,956 | $ | 2,227 | $ | 1,899 | $ | 2,175 |
At or For the Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||
Selected Financial Ratios and Other Data(1): | |||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||
Return on average assets (2) | 0.32 | % | 0.73 | % | 0.95 | % | 0.59 | % | 0.94 | % | |||||
Return on average stockholders’ equity (2) | 2.54 | 6.56 | 8.60 | 5.25 | 8.42 | ||||||||||
Return on average tangible stockholders’ equity (2) (3) | 3.80 | 8.89 | 11.74 | 7.19 | 11.50 | ||||||||||
Stockholders' equity to total assets | 13.44 | 11.11 | 11.07 | 11.29 | 11.21 | ||||||||||
Tangible stockholders’ equity to tangible assets (3) | 9.11 | 8.42 | 8.39 | 8.50 | 8.42 | ||||||||||
Net interest rate spread | 3.58 | 3.32 | 3.41 | 3.48 | 3.47 | ||||||||||
Net interest margin | 3.70 | 3.42 | 3.50 | 3.57 | 3.56 | ||||||||||
Operating expenses to average assets (2) | 3.37 | 2.03 | 2.29 | 2.86 | 2.41 | ||||||||||
Efficiency ratio (2) (4) | 87.92 | 56.23 | 60.96 | 75.55 | 65.21 | ||||||||||
Loans to deposits | 91.65 | 91.32 | 88.96 | 92.62 | 91.11 |
At or For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||
Wealth Management: | ||||||||||||||||||||
Assets under administration | $ | 221,493 | $ | 233,185 | $ | 225,904 | $ | 214,479 | $ | 215,593 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Cash dividends per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | ||||||||||
Stockholders’ equity per common share at end of period | 20.94 | 18.47 | 18.30 | 18.05 | 17.94 | |||||||||||||||
Tangible stockholders’ equity per common share at end of period (3) | 13.51 | 13.58 | 13.47 | 13.18 | 13.07 | |||||||||||||||
Number of full-service customer facilities: | 76 | 46 | 46 | 51 | 61 | |||||||||||||||
Quarterly Average Balances | ||||||||||||||||||||
Total securities | $ | 1,056,774 | $ | 874,910 | $ | 817,867 | $ | 786,964 | $ | 703,712 | ||||||||||
Loans, receivable, net | 4,950,007 | 3,898,040 | 3,872,351 | 3,840,916 | 3,811,136 | |||||||||||||||
Total interest-earning assets | 6,107,017 | 4,928,937 | 4,873,732 | 4,741,900 | 4,729,013 | |||||||||||||||
Total assets | 6,842,693 | 5,404,864 | 5,334,527 | 5,215,636 | 5,211,071 | |||||||||||||||
Interest-bearing transaction deposits | 3,614,295 | 2,992,261 | 2,914,004 | 2,819,175 | 2,788,452 | |||||||||||||||
Time deposits | 820,834 | 619,087 | 620,308 | 624,020 | 640,269 | |||||||||||||||
Total borrowed funds | 481,163 | 392,154 | 395,439 | 389,321 | 383,082 | |||||||||||||||
Total interest-bearing liabilities | 4,916,292 | 4,003,502 | 3,929,751 | 3,832,516 | 3,811,803 | |||||||||||||||
Non-interest bearing deposits | 1,004,673 | 760,552 | 781,047 | 772,739 | 791,036 | |||||||||||||||
Stockholders’ equity | 866,697 | 601,930 | 591,369 | 587,121 | 578,833 | |||||||||||||||
Total deposits | 5,439,802 | 4,371,900 | 4,315,359 | 4,215,934 | 4,219,757 | |||||||||||||||
Quarterly Yields | ||||||||||||||||||||
Total securities | 2.31 | % | 2.09 | % | 2.07 | % | 2.07 | % | 2.23 | % | ||||||||||
Loans, receivable, net | 4.64 | 4.37 | 4.44 | 4.45 | 4.44 | |||||||||||||||
Total interest-earning assets | 4.17 | 3.86 | 3.91 | 3.97 | 3.95 | |||||||||||||||
Interest-bearing transaction deposits | 0.28 | 0.25 | 0.21 | 0.20 | 0.18 | |||||||||||||||
Time deposits | 0.97 | 1.08 | 1.02 | 0.96 | 0.93 | |||||||||||||||
Total borrowed funds | 2.24 | 1.91 | 1.87 | 1.85 | 1.85 | |||||||||||||||
Total interest-bearing liabilities | 0.59 | 0.54 | 0.50 | 0.49 | 0.48 | |||||||||||||||
Net interest spread | 3.58 | 3.32 | 3.41 | 3.48 | 3.47 | |||||||||||||||
Net interest margin | 3.70 | 3.42 | 3.50 | 3.57 | 3.56 | |||||||||||||||
Total deposits | 0.33 | 0.32 | 0.29 | 0.28 | 0.27 |
(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. |
(3) | Tangible stockholders’ equity and tangible assets exclude intangible assets relating to goodwill and core deposit intangible. |
(4) | Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income. |
For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||
Core earnings: | ||||||||||||||||||||
Net income | $ | 5,427 | $ | 9,956 | $ | 12,817 | $ | 7,679 | $ | 12,018 | ||||||||||
Add: Merger related expenses | 18,486 | 1,993 | 1,698 | 3,155 | 1,447 | |||||||||||||||
Branch consolidation expenses | (176 | ) | (734 | ) | 1,455 | 5,451 | 33 | |||||||||||||
Accelerated stock award expense | — | — | — | — | 242 | |||||||||||||||
Income tax expense related to Tax Reform | — | 3,643 | — | — | — | |||||||||||||||
Less: Income tax (expense) benefit on items | (3,664 | ) | 2 | (1,084 | ) | (3,012 | ) | (587 | ) | |||||||||||
Core earnings | $ | 20,073 | $ | 14,860 | $ | 14,886 | $ | 13,273 | $ | 13,153 | ||||||||||
Core diluted earnings per share | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.40 | $ | 0.40 | ||||||||||
Core ratios (Annualized): | ||||||||||||||||||||
Return on average assets | 1.19 | % | 1.09 | % | 1.11 | % | 1.02 | % | 1.02 | % | ||||||||||
Return on average tangible stockholders’ equity | 14.07 | 13.27 | 13.63 | 12.42 | 12.56 | |||||||||||||||
Efficiency ratio | 59.59 | 53.67 | 54.71 | 58.04 | 61.58 |
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||
Total stockholders’ equity | $ | 1,007,460 | $ | 601,941 | $ | 596,140 | $ | 587,189 | $ | 582,543 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 337,519 | 150,501 | 148,134 | 148,433 | 147,815 | |||||||||||||||
Core deposit intangible | 19,950 | 8,885 | 9,380 | 9,887 | 10,400 | |||||||||||||||
Tangible stockholders’ equity | $ | 649,991 | $ | 442,555 | $ | 438,626 | $ | 428,869 | $ | 424,328 | ||||||||||
Total assets | $ | 7,494,899 | $ | 5,416,006 | $ | 5,383,800 | $ | 5,202,086 | $ | 5,196,203 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 337,519 | 150,501 | 148,134 | 148,433 | 147,815 | |||||||||||||||
Core deposit intangible | 19,950 | 8,885 | 9,380 | 9,887 | 10,400 | |||||||||||||||
Tangible assets | $ | 7,137,430 | $ | 5,256,620 | $ | 5,226,286 | $ | 5,043,766 | $ | 5,037,988 | ||||||||||
Tangible stockholders’ equity to tangible assets | 9.11 | % | 8.42 | % | 8.39 | % | 8.50 | % | 8.42 | % |
At January 31, 2018 | |||||||||||
Sun Book Value | Purchase Accounting Adjustments | Estimated Fair Value | |||||||||
Total Purchase Price: | $ | 474,930 | |||||||||
Assets acquired: | |||||||||||
Cash and cash equivalents | $ | 68,632 | $ | — | $ | 68,632 | |||||
Securities and Federal Home Loan Bank Stock | 254,522 | — | 254,522 | ||||||||
Loans | 1,541,868 | (23,921 | ) | 1,517,947 | |||||||
Accrued interest receivable | 5,621 | — | 5,621 | ||||||||
Bank Owned Life Insurance | 85,238 | — | 85,238 | ||||||||
Deferred tax asset | 55,710 | 2,642 | 58,352 | ||||||||
Other assets | 49,561 | (7,031 | ) | 42,530 | |||||||
Core deposit intangible | — | 11,897 | 11,897 | ||||||||
Total assets acquired | 2,061,152 | (16,413 | ) | 2,044,739 | |||||||
Liabilities assumed: | |||||||||||
Deposits | (1,614,910 | ) | (1,163 | ) | (1,616,073 | ) | |||||
Borrowings | (142,567 | ) | 14,820 | (127,747 | ) | ||||||
Other liabilities | (14,372 | ) | 1,365 | (13,007 | ) | ||||||
Total liabilities assumed | (1,771,849 | ) | 15,022 | (1,756,827 | ) | ||||||
Net assets acquired | $ | 289,303 | $ | (1,391 | ) | $ | 287,912 | ||||
Goodwill recorded in the merger | $ | 187,018 |