|
|
Exhibit 99.1 |
CBTX, Inc. Reports Third Quarter Financial Results
Houston, Texas, October 24, 2019 -- CBTX, Inc., or the Company (NASDAQ: CBTX), the bank holding company for CommunityBank of Texas, N.A., or the Bank, today announced net income of $13.1 million, or $0.52 per diluted share, for the quarter ended September 30, 2019, compared to $14.3 million, or $0.57 per diluted share, for the quarter ended June 30, 2019 and $13.0 million, or $0.52 per diluted share, for the quarter ended September 30, 2018.
Robert R. Franklin, Jr., the Company’s Chairman, CEO and President said, “We are pleased to announce our results for the third quarter. We maintained our strong net interest margin in an environment of downward pressure on interest rates. Our team remains disciplined in our relationship-driven approach and focused on our goal of continuing to steadily grow our earnings.”
Mr. Franklin continued, “We are in great markets and continue to see opportunities to grow our franchise. We continue to concentrate on credit quality and we expect to remain mindful of the credit headwinds that may rise in the coming year.”
“We believe that we are positioned to meet the continuing challenges of a lower interest rate environment including utilizing the advantage provided by our great deposit mix,” he added. “We intend to finish the year strong.”
Highlights
|
· |
Loans increased to $2.7 billion at September 30, 2019, compared to $2.6 billion at June 30, 2019 and $2.5 billion at September 30, 2018. |
|
· |
Net interest margin on a tax equivalent basis was 4.43% for the quarter ended September 30, 2019, compared to 4.53% for the quarter ended June 30, 2019 and 4.31% for the quarter ended September 30, 2018. |
|
· |
The cost of interest-bearing deposits was at 1.05% for the quarter ended September 30, 2019, compared to 1.01% for the quarter ended June 30, 2019 and 0.77% for the quarter ended September 30, 2018. |
|
· |
Nonperforming assets remain low relative to total assets at 0.03% at September 30, 2019 compared to 0.10% of total assets at June 30, 2019 and 0.18% of total assets at September 30, 2018. |
Operating Results
Net Interest Income
Net interest income was $34.6 million for the third quarter of 2019, compared to $34.3 million for the second quarter of 2019 and $31.5 million for the third quarter of 2018. The increase in net interest income in the third quarter of 2019 from the second quarter of 2019 was primarily due to higher average loans and the impact of one additional day in the third quarter of 2019 compared to the second quarter of 2019, partially offset by lower average yields on interest-earning assets, increased average interest-bearing deposits and rates on interest-bearing deposits.
The increase in net interest income in the third quarter of 2019 from the third quarter of 2018 was primarily due to higher average loan balances and yields, partially offset by the impact of higher rates on interest-bearing deposits and increased average FHLB advances.
Provision/Recapture for Loan Losses
Provision for loan loss was $579,000 for the third quarter of 2019, compared to $807,000 for the second quarter
1
of 2019 and a $1.1 million recapture for the third quarter of 2018.
The allowance for loan losses was $25.6 million, or 0.96% of total loans, at September 30, 2019, compared to $25.3 million, or 0.96% of total loans, at June 30, 2019, and $24.5 million, or 0.99% of total loans, at September 30, 2018.
Noninterest Income
Noninterest income was $4.1 million for the third quarter of 2019, $7.3 million for the second quarter of 2019 and $3.5 million for the third quarter of 2018. During the second quarter of 2019, the Company received nontaxable death benefit proceeds of $4.7 million under bank-owned life insurance policies and recorded a gain of $3.3 million over the carrying value.
Noninterest Expense
Noninterest expense was $22.0 million for the third quarter of 2019, $23.4 million for the second quarter of 2019 and $20.0 million for the third quarter of 2018. Noninterest expense decreased $1.4 million during the third quarter of 2019, compared to the second quarter of 2019, primarily due to decreased legal fees included in professional and director fees and decreased regulatory fees resulting from an FDIC deposit assessment credit received. The Bank incurred legal fees of $729,000 in the third quarter of 2019, compared to $1.4 million in the second quarter of 2019.
Noninterest expense increased $2.1 million in the third quarter of 2019, compared to the third quarter of 2018. Salaries and benefits increased $1.5 million resulting from annual salary increases in 2019 and increased stock compensation expense due to grants of restricted stock. Professional and director fees increased $646,000 due to legal fees as noted above.
Income Taxes
Income tax expense was $3.0 million for the third quarter of 2019, $3.1 million for the second quarter of 2019 and $3.2 million for the third quarter of 2018.
The effective tax rates were 18.61% for the third quarter of 2019, 17.69% for the second quarter of 2019 and 19.76% for the third quarter of 2018. The decrease in the effective tax rate for the second quarter of 2019 was due to a nontaxable gain related to bank-owned life insurance policies as noted above.
Balance Sheet Highlights
Loans
Loans, excluding loans held for sale, were $2.7 billion at September 30, 2019, $2.6 billion at June 30, 2019 and $2.5 billion at September 30, 2018. Loans, excluding loans held for sale, increased 8.7% during the twelve months ended September 30, 2019 due to organic growth.
Asset Quality
Nonperforming assets remain low relative to total assets at $1.1 million, or 0.03% of total assets, at September 30, 2019, $3.3 million, or 0.10% of total assets, at June 30, 2019 and $5.8 million, or 0.18% of total assets, at September 30, 2018.
Annualized net charge-offs to average loans were 0.05% for the third quarter of 2019, 0.02% for the second quarter of 2019 and 0.02% for the third quarter of 2018.
Deposits and Borrowings
Total deposits were $2.7 billion at September 30, 2019 and $2.7 billion at June 30, 2019 and $2.7 billion at
2
September 30, 2018. Deposits increased 2.0% during the twelve months ended September 30, 2019 due to normal fluctuations in customer activities.
We define total borrowings as the total of repurchase agreements, FHLB advances and notes payable. Total borrowings were $121.2 million, $90.8 million and $1.4 million at September 30, 2019, June 30, 2019 and September 30, 2018, respectively. Borrowings increased during the three months ended September 30, 2019 and June 30, 2019 due to loan growth during each period.
Capital
At September 30, 2019, the Company remained well capitalized under bank regulatory requirements.
Our ratio of tangible equity to tangible assets was 13.13% at September 30, 2019, 12.96% at June 30, 2019 and 12.40% at September 30, 2018. Tangible equity to tangible assets is a non-GAAP financial measure. The most directly comparable GAAP financial measure of tangible equity to tangible assets is total shareholders’ equity to total assets, which was 15.31% at September 30, 2019, 15.18% at June 30, 2019 and 14.79% at September 30, 2018. See the table captioned “Non‑GAAP to GAAP Reconciliation” at the end of this earnings release.
Non-GAAP Financial Measures
The Company’s accounting and reporting policies conform to United States. generally accepted accounting principles, or GAAP, and the prevailing practices in the banking industry. The Company’s management also evaluates performance based on certain additional non-GAAP financial measures. The Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows.
This press release contains certain non-GAAP financial measures including “tangible book value”, “tangible book value per common share,” “tangible equity to tangible assets,” which are supplemental measures that are not required by, or are not presented in accordance with, GAAP. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP. Non-GAAP financial measures 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 way we calculate the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.
Please refer to the table titled “Non-GAAP to GAAP Reconciliation” at the end of this earnings release for a reconciliation of these non-GAAP financial measures.
About CBTX, Inc.
CBTX, Inc. is the bank holding company for CommunityBank of Texas, N.A., a $3.4 billion asset bank, offering commercial banking solutions to small and mid-sized businesses and professionals in Houston, Dallas, Beaumont and surrounding communities in Texas. Visit www.communitybankoftx.com for more information.
Forward-Looking Statements
This release may contain certain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about the Company and its subsidiary. Forward-looking statements include information regarding the Company’s future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our
3
future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, whether the Company can: prudently manage and execute its growth strategy; manage risks associated with its acquisition and de novo branching strategy; maintain its asset quality; address the volatility and direction of market interest rates; continue to have access to debt and equity capital markets; avoid or address interruptions or breaches in the Company’s information system security; address the costs and effects of regulatory or other government inquiries, the results of regulatory examinations, investigations or reviews or the ability to obtain the required regulatory approvals; and achieve its performance goals. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) and other reports and statements that the Company has filed with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what it anticipates. Accordingly, you should not place undue reliance on any such forward looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Copies of the SEC filings for the Company are available for download free of charge from www.communitybankoftx.com under the Investor Relations tab.
4
CBTX, INC. AND SUBSIDIARY
Financial Highlights (Unaudited)
(In thousands, except per share data and percentages)
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
9/30/2019 |
|
9/30/2018 |
|
|||||||
|
Profitability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,076 |
|
$ |
14,315 |
|
$ |
10,490 |
|
$ |
14,112 |
|
$ |
13,023 |
|
$ |
37,881 |
|
$ |
33,177 |
|
|
Basic earnings per share |
|
$ |
0.52 |
|
$ |
0.57 |
|
$ |
0.42 |
|
$ |
0.57 |
|
$ |
0.52 |
|
$ |
1.52 |
|
$ |
1.34 |
|
|
Diluted earnings per share |
|
$ |
0.52 |
|
$ |
0.57 |
|
$ |
0.42 |
|
$ |
0.56 |
|
$ |
0.52 |
|
$ |
1.51 |
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
1.53% |
|
|
1.72% |
|
|
1.30% |
|
|
1.71% |
|
|
1.62% |
|
|
1.52% |
|
|
1.42% |
|
|
Return on average shareholders' equity (1) |
|
|
9.92% |
|
|
11.30% |
|
|
8.59% |
|
|
11.66% |
|
|
11.02% |
|
|
9.95% |
|
|
9.65% |
|
|
Net interest margin- tax equivalent (1) |
|
|
4.43% |
|
|
4.53% |
|
|
4.56% |
|
|
4.42% |
|
|
4.31% |
|
|
4.51% |
|
|
4.32% |
|
|
Efficiency ratio (2) |
|
|
56.98% |
|
|
56.25% |
|
|
61.34% |
|
|
58.67% |
|
|
56.96% |
|
|
58.09% |
|
|
59.17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity to total assets |
|
|
15.31% |
|
|
15.18% |
|
|
15.19% |
|
|
14.87% |
|
|
14.79% |
|
|
15.31% |
|
|
14.79% |
|
|
Tangible equity to tangible assets (3) |
|
|
13.13% |
|
|
12.96% |
|
|
12.89% |
|
|
12.56% |
|
|
12.40% |
|
|
13.13% |
|
|
12.40% |
|
|
Common equity tier 1 capital ratio |
|
|
14.99% |
|
|
14.71% |
|
|
14.53% |
|
|
14.71% |
|
|
14.29% |
|
|
14.99% |
|
|
14.29% |
|
|
Tier 1 risk-based capital ratio |
|
|
14.99% |
|
|
14.71% |
|
|
14.53% |
|
|
14.76% |
|
|
14.53% |
|
|
14.99% |
|
|
14.53% |
|
|
Total risk-based capital ratio |
|
|
15.88% |
|
|
15.59% |
|
|
15.41% |
|
|
15.63% |
|
|
15.44% |
|
|
15.88% |
|
|
15.44% |
|
|
Tier 1 leverage ratio |
|
|
13.23% |
|
|
13.12% |
|
|
13.02% |
|
|
12.74% |
|
|
12.84% |
|
|
13.23% |
|
|
12.84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding- Basic |
|
|
24,923 |
|
|
24,921 |
|
|
24,910 |
|
|
24,886 |
|
|
24,859 |
|
|
24,918 |
|
|
24,850 |
|
|
Weighted average common shares outstanding- Diluted |
|
|
25,046 |
|
|
25,042 |
|
|
25,054 |
|
|
25,046 |
|
|
25,060 |
|
|
25,053 |
|
|
25,007 |
|
|
Common shares outstanding at period end |
|
|
24,923 |
|
|
24,923 |
|
|
24,918 |
|
|
24,907 |
|
|
24,859 |
|
|
24,923 |
|
|
24,859 |
|
|
Dividends per share |
|
$ |
0.10 |
|
$ |
0.10 |
|
$ |
0.10 |
|
$ |
0.05 |
|
$ |
0.05 |
|
$ |
0.30 |
|
$ |
0.15 |
|
|
Book value per share |
|
$ |
21.07 |
|
$ |
20.59 |
|
$ |
20.01 |
|
$ |
19.58 |
|
$ |
18.98 |
|
$ |
21.07 |
|
$ |
18.98 |
|
|
Tangible book value per share (3) |
|
$ |
17.62 |
|
$ |
17.13 |
|
$ |
16.54 |
|
$ |
16.10 |
|
$ |
15.48 |
|
$ |
17.62 |
|
$ |
15.48 |
|
|
Employees - full-time equivalents |
|
|
504 |
|
|
508 |
|
|
494 |
|
|
495 |
|
|
489 |
|
|
504 |
|
|
489 |
|
(1)Annualized.
(2)Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
(3)Non‑GAAP financial measure. See the table captioned “Non‑GAAP to GAAP Reconciliation” at the end of this earnings release.
5
CBTX, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
|
Balance Sheet Data (at period end): |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, excluding loans held for sale |
|
$ |
2,676,824 |
|
$ |
2,642,289 |
|
$ |
2,544,709 |
|
$ |
2,446,823 |
|
$ |
2,463,197 |
|
Allowance for loan losses |
|
|
(25,576) |
|
|
(25,342) |
|
|
(24,643) |
|
|
(23,693) |
|
|
(24,486) |
|
Loans, net |
|
|
2,651,248 |
|
|
2,616,947 |
|
|
2,520,066 |
|
|
2,423,130 |
|
|
2,438,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents |
|
|
289,399 |
|
|
266,776 |
|
|
276,515 |
|
|
382,070 |
|
|
281,640 |
|
Securities |
|
|
228,061 |
|
|
232,601 |
|
|
228,684 |
|
|
229,964 |
|
|
222,493 |
|
Premises and equipment |
|
|
51,183 |
|
|
51,346 |
|
|
51,453 |
|
|
51,622 |
|
|
52,032 |
|
Goodwill |
|
|
80,950 |
|
|
80,950 |
|
|
80,950 |
|
|
80,950 |
|
|
80,950 |
|
Other intangible assets |
|
|
5,106 |
|
|
5,318 |
|
|
5,538 |
|
|
5,775 |
|
|
6,038 |
|
Loans held for sale |
|
|
— |
|
|
1,408 |
|
|
852 |
|
|
— |
|
|
384 |
|
Operating lease right-to-use asset |
|
|
12,864 |
|
|
12,355 |
|
|
12,879 |
|
|
— |
|
|
— |
|
Other assets |
|
|
112,774 |
|
|
111,805 |
|
|
106,525 |
|
|
105,585 |
|
|
108,205 |
|
Total assets |
|
$ |
3,431,585 |
|
$ |
3,379,506 |
|
$ |
3,283,462 |
|
$ |
3,279,096 |
|
$ |
3,190,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
1,196,720 |
|
$ |
1,201,287 |
|
$ |
1,229,172 |
|
$ |
1,183,058 |
|
$ |
1,144,985 |
|
Interest-bearing deposits |
|
|
1,547,607 |
|
|
1,537,620 |
|
|
1,521,827 |
|
|
1,583,224 |
|
|
1,545,095 |
|
Total deposits |
|
|
2,744,327 |
|
|
2,738,907 |
|
|
2,750,999 |
|
|
2,766,282 |
|
|
2,690,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase agreements |
|
|
1,208 |
|
|
805 |
|
|
1,600 |
|
|
2,498 |
|
|
1,351 |
|
Federal Home Loan Bank advances |
|
|
120,000 |
|
|
90,000 |
|
|
— |
|
|
— |
|
|
— |
|
Junior subordinated debt |
|
|
— |
|
|
— |
|
|
— |
|
|
1,571 |
|
|
6,726 |
|
Operating lease liabilities |
|
|
15,513 |
|
|
14,806 |
|
|
15,134 |
|
|
— |
|
|
— |
|
Other liabilities |
|
|
25,317 |
|
|
21,830 |
|
|
17,076 |
|
|
21,120 |
|
|
20,445 |
|
Total liabilities |
|
|
2,906,365 |
|
|
2,866,348 |
|
|
2,784,809 |
|
|
2,791,471 |
|
|
2,718,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
525,220 |
|
|
513,158 |
|
|
498,653 |
|
|
487,625 |
|
|
471,851 |
|
Total liabilities and shareholders' equity |
|
$ |
3,431,585 |
|
$ |
3,379,506 |
|
$ |
3,283,462 |
|
$ |
3,279,096 |
|
$ |
3,190,453 |
6
CBTX, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Income (Unaudited)
(In thousands)
|
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
9/30/2019 |
|
9/30/2018 |
|||||||
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
36,353 |
|
$ |
35,608 |
|
$ |
33,793 |
|
$ |
33,427 |
|
$ |
31,513 |
|
$ |
105,754 |
|
$ |
90,468 |
|
Securities |
|
|
1,436 |
|
|
1,519 |
|
|
1,557 |
|
|
1,542 |
|
|
1,535 |
|
|
4,512 |
|
|
4,478 |
|
Other interest-earning assets |
|
|
1,212 |
|
|
1,359 |
|
|
1,483 |
|
|
1,696 |
|
|
1,404 |
|
|
4,054 |
|
|
3,334 |
|
Equity investments |
|
|
192 |
|
|
163 |
|
|
152 |
|
|
217 |
|
|
213 |
|
|
507 |
|
|
597 |
|
Total interest income |
|
|
39,193 |
|
|
38,649 |
|
|
36,985 |
|
|
36,882 |
|
|
34,665 |
|
|
114,827 |
|
|
98,877 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,130 |
|
|
3,822 |
|
|
3,584 |
|
|
3,551 |
|
|
2,961 |
|
|
11,536 |
|
|
7,035 |
|
FHLB advances and repurchase agreements |
|
|
484 |
|
|
524 |
|
|
65 |
|
|
1 |
|
|
62 |
|
|
1,073 |
|
|
76 |
|
Note payable and junior subordinated debt |
|
|
4 |
|
|
4 |
|
|
8 |
|
|
110 |
|
|
116 |
|
|
16 |
|
|
325 |
|
Total interest expense |
|
|
4,618 |
|
|
4,350 |
|
|
3,657 |
|
|
3,662 |
|
|
3,139 |
|
|
12,625 |
|
|
7,436 |
|
Net interest income |
|
|
34,575 |
|
|
34,299 |
|
|
33,328 |
|
|
33,220 |
|
|
31,526 |
|
|
102,202 |
|
|
91,441 |
|
Provision (recapture) for loan losses |
|
|
579 |
|
|
807 |
|
|
1,147 |
|
|
(2,169) |
|
|
(1,142) |
|
|
2,533 |
|
|
413 |
|
Net interest income after provision (recapture) for loan losses |
|
|
33,996 |
|
|
33,492 |
|
|
32,181 |
|
|
35,389 |
|
|
32,668 |
|
|
99,669 |
|
|
91,028 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account service charges |
|
|
1,681 |
|
|
1,657 |
|
|
1,629 |
|
|
1,709 |
|
|
1,597 |
|
|
4,967 |
|
|
4,572 |
|
Net gain (loss) on sale of assets |
|
|
190 |
|
|
69 |
|
|
88 |
|
|
168 |
|
|
152 |
|
|
347 |
|
|
492 |
|
Card interchange fees |
|
|
908 |
|
|
941 |
|
|
864 |
|
|
921 |
|
|
922 |
|
|
2,713 |
|
|
2,820 |
|
Earnings on bank-owned life insurance |
|
|
430 |
|
|
3,721 |
|
|
430 |
|
|
456 |
|
|
443 |
|
|
4,581 |
|
|
1,359 |
|
Other |
|
|
906 |
|
|
915 |
|
|
482 |
|
|
605 |
|
|
412 |
|
|
2,303 |
|
|
1,150 |
|
Total noninterest income |
|
|
4,115 |
|
|
7,303 |
|
|
3,493 |
|
|
3,859 |
|
|
3,526 |
|
|
14,911 |
|
|
10,393 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
13,951 |
|
|
14,185 |
|
|
13,822 |
|
|
13,834 |
|
|
12,499 |
|
|
41,958 |
|
|
37,690 |
|
Net occupancy expense |
|
|
2,484 |
|
|
2,338 |
|
|
2,267 |
|
|
2,268 |
|
|
2,428 |
|
|
7,089 |
|
|
7,126 |
|
Regulatory fees |
|
|
144 |
|
|
446 |
|
|
464 |
|
|
507 |
|
|
488 |
|
|
1,054 |
|
|
1,546 |
|
Data processing |
|
|
652 |
|
|
661 |
|
|
714 |
|
|
664 |
|
|
664 |
|
|
2,027 |
|
|
2,013 |
|
Software |
|
|
469 |
|
|
425 |
|
|
440 |
|
|
408 |
|
|
400 |
|
|
1,334 |
|
|
1,168 |
|
Printing, stationery and office |
|
|
313 |
|
|
327 |
|
|
353 |
|
|
303 |
|
|
291 |
|
|
993 |
|
|
858 |
|
Amortization of intangibles |
|
|
221 |
|
|
225 |
|
|
232 |
|
|
237 |
|
|
245 |
|
|
678 |
|
|
748 |
|
Professional and director fees |
|
|
1,455 |
|
|
2,282 |
|
|
2,091 |
|
|
1,123 |
|
|
809 |
|
|
5,828 |
|
|
2,414 |
|
Correspondent bank and customer related transaction expenses |
|
|
67 |
|
|
66 |
|
|
65 |
|
|
64 |
|
|
66 |
|
|
198 |
|
|
201 |
|
Loan processing costs |
|
|
124 |
|
|
124 |
|
|
95 |
|
|
153 |
|
|
102 |
|
|
343 |
|
|
295 |
|
Advertising, marketing and business development |
|
|
407 |
|
|
532 |
|
|
440 |
|
|
406 |
|
|
437 |
|
|
1,379 |
|
|
1,418 |
|
Repossessed real estate and other asset expense |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
3 |
|
|
— |
|
|
65 |
|
Security and protection expense |
|
|
410 |
|
|
367 |
|
|
323 |
|
|
317 |
|
|
346 |
|
|
1,100 |
|
|
959 |
|
Telephone and communications |
|
|
434 |
|
|
456 |
|
|
378 |
|
|
408 |
|
|
342 |
|
|
1,268 |
|
|
1,122 |
|
Other expenses |
|
|
914 |
|
|
969 |
|
|
901 |
|
|
1,057 |
|
|
844 |
|
|
2,784 |
|
|
2,637 |
|
Total noninterest expense |
|
|
22,045 |
|
|
23,403 |
|
|
22,585 |
|
|
21,756 |
|
|
19,964 |
|
|
68,033 |
|
|
60,260 |
|
Net income before income tax expense |
|
|
16,066 |
|
|
17,392 |
|
|
13,089 |
|
|
17,492 |
|
|
16,230 |
|
|
46,547 |
|
|
41,161 |
|
Income tax expense |
|
|
2,990 |
|
|
3,077 |
|
|
2,599 |
|
|
3,380 |
|
|
3,207 |
|
|
8,666 |
|
|
7,984 |
|
Net income |
|
$ |
13,076 |
|
$ |
14,315 |
|
$ |
10,490 |
|
$ |
14,112 |
|
$ |
13,023 |
|
$ |
37,881 |
|
$ |
33,177 |
7
CBTX, INC. AND SUBSIDIARY
Net Interest Margin (Unaudited)
(In thousands, except percentages)
|
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
||||||||||||||||||
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Interest |
|
|
|||
|
|
|
Average |
|
Earned/ |
|
Average |
|
Average |
|
Earned/ |
|
Average |
|
Average |
|
Earned/ |
|
Average |
||||||
|
|
|
Outstanding |
|
Interest |
|
Yield/ |
|
Outstanding |
|
Interest |
|
Yield/ |
|
Outstanding |
|
Interest |
|
Yield/ |
||||||
|
|
|
Balance |
|
Paid |
|
Rate (1) |
|
Balance |
|
Paid |
|
Rate (1) |
|
Balance |
|
Paid |
|
Rate (1) |
||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (2) |
|
$ |
2,655,941 |
|
$ |
36,353 |
|
5.43% |
|
$ |
2,591,928 |
|
$ |
35,608 |
|
5.51% |
|
$ |
2,404,491 |
|
$ |
31,513 |
|
5.20% |
|
Securities |
|
|
234,525 |
|
|
1,436 |
|
2.41% |
|
|
233,339 |
|
|
1,519 |
|
2.61% |
|
|
230,592 |
|
|
1,535 |
|
2.64% |
|
Other interest-earning assets |
|
|
215,900 |
|
|
1,212 |
|
2.25% |
|
|
219,639 |
|
|
1,359 |
|
2.48% |
|
|
272,739 |
|
|
1,404 |
|
2.04% |
|
Equity investments |
|
|
16,154 |
|
|
192 |
|
4.72% |
|
|
15,218 |
|
|
163 |
|
4.32% |
|
|
16,799 |
|
|
213 |
|
5.01% |
|
Total interest-earning assets |
|
|
3,122,520 |
|
$ |
39,193 |
|
4.98% |
|
|
3,060,124 |
|
$ |
38,649 |
|
5.07% |
|
|
2,924,621 |
|
$ |
34,665 |
|
4.70% |
|
Allowance for loan losses |
|
|
(25,422) |
|
|
|
|
|
|
|
(24,829) |
|
|
|
|
|
|
|
(25,689) |
|
|
|
|
|
|
Noninterest-earnings assets |
|
|
296,861 |
|
|
|
|
|
|
|
299,234 |
|
|
|
|
|
|
|
292,598 |
|
|
|
|
|
|
Total assets |
|
$ |
3,393,959 |
|
|
|
|
|
|
$ |
3,334,529 |
|
|
|
|
|
|
$ |
3,191,530 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,557,503 |
|
$ |
4,130 |
|
1.05% |
|
$ |
1,514,697 |
|
$ |
3,822 |
|
1.01% |
|
$ |
1,530,077 |
|
$ |
2,961 |
|
0.77% |
|
FHLB advances and repurchase agreements |
|
|
84,847 |
|
|
484 |
|
2.26% |
|
|
83,899 |
|
|
524 |
|
2.51% |
|
|
12,657 |
|
|
62 |
|
1.94% |
|
Note payable and junior subordinated debt |
|
|
— |
|
|
4 |
|
— |
|
|
— |
|
|
4 |
|
— |
|
|
10,826 |
|
|
116 |
|
4.25% |
|
Total interest-bearing liabilities |
|
|
1,642,350 |
|
$ |
4,618 |
|
1.12% |
|
|
1,598,596 |
|
$ |
4,350 |
|
1.09% |
|
|
1,553,560 |
|
$ |
3,139 |
|
0.80% |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
1,189,087 |
|
|
|
|
|
|
|
1,194,645 |
|
|
|
|
|
|
|
1,145,516 |
|
|
|
|
|
|
Other liabilities |
|
|
39,775 |
|
|
|
|
|
|
|
32,991 |
|
|
|
|
|
|
|
23,600 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,228,862 |
|
|
|
|
|
|
|
1,227,636 |
|
|
|
|
|
|
|
1,169,116 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
522,747 |
|
|
|
|
|
|
|
508,297 |
|
|
|
|
|
|
|
468,854 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
3,393,959 |
|
|
|
|
|
|
$ |
3,334,529 |
|
|
|
|
|
|
$ |
3,191,530 |
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
34,575 |
|
|
|
|
|
|
$ |
34,299 |
|
|
|
|
|
|
$ |
31,526 |
|
|
|
Net interest spread (3) |
|
|
|
|
|
|
|
3.86% |
|
|
|
|
|
|
|
3.98% |
|
|
|
|
|
|
|
3.90% |
|
Net interest margin (4) |
|
|
|
|
|
|
|
4.39% |
|
|
|
|
|
|
|
4.50% |
|
|
|
|
|
|
|
4.28% |
|
Net interest margin—tax equivalent (5) |
|
|
|
|
|
|
|
4.43% |
|
|
|
|
|
|
|
4.53% |
|
|
|
|
|
|
|
4.31% |
(1)Annualized.
(2)Includes average outstanding balances related to loans held for sale.
(3)Net interest spread is the average yield on interest‑earning assets minus the average rate on interest‑bearing liabilities.
(4)Net interest margin is equal to net interest income divided by average interest‑earning assets.
(5)Tax equivalent adjustments of $257,000, $258,000 and $261,000 for the quarter ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively, were computed using a federal income tax rate of 21%.
8
CBTX, INC. AND SUBSIDIARY
Net Interest Margin (Unaudited)
(In thousands, except percentages)
|
|
|
Nine Months Ended September 30, |
||||||||||||||
|
|
|
2019 |
|
2018 |
||||||||||||
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Interest |
|
|
||
|
|
|
Average |
|
Earned/ |
|
Average |
|
Average |
|
Earned/ |
|
Average |
||||
|
|
|
Outstanding |
|
Interest |
|
Yield/ |
|
Outstanding |
|
Interest |
|
Yield/ |
||||
|
(Dollars in thousands) |
|
Balance |
|
Paid |
|
Rate (1) |
|
Balance |
|
Paid |
|
Rate (1) |
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (2) |
|
$ |
2,583,454 |
|
$ |
105,754 |
|
5.47% |
|
$ |
2,366,714 |
|
$ |
90,468 |
|
5.11% |
|
Securities |
|
|
233,913 |
|
|
4,512 |
|
2.58% |
|
|
227,552 |
|
|
4,478 |
|
2.63% |
|
Other interest-earning assets |
|
|
224,123 |
|
|
4,054 |
|
2.42% |
|
|
242,529 |
|
|
3,334 |
|
1.84% |
|
Equity investments |
|
|
14,419 |
|
|
507 |
|
4.70% |
|
|
15,449 |
|
|
597 |
|
5.17% |
|
Total interest-earning assets |
|
|
3,055,909 |
|
$ |
114,827 |
|
5.02% |
|
|
2,852,244 |
|
$ |
98,877 |
|
4.63% |
|
Allowance for loan losses |
|
|
(24,762) |
|
|
|
|
|
|
|
(25,318) |
|
|
|
|
|
|
Noninterest-earnings assets |
|
|
299,648 |
|
|
|
|
|
|
|
289,391 |
|
|
|
|
|
|
Total assets |
|
$ |
3,330,795 |
|
|
|
|
|
|
$ |
3,116,317 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,538,793 |
|
$ |
11,536 |
|
1.00% |
|
$ |
1,499,925 |
|
$ |
7,035 |
|
0.63% |
|
FHLB advances and repurchase agreements |
|
|
60,377 |
|
|
1,073 |
|
2.38% |
|
|
5,979 |
|
|
76 |
|
1.70% |
|
Note payable and junior subordinated debt |
|
|
— |
|
|
16 |
|
— |
|
|
10,826 |
|
|
325 |
|
4.01% |
|
Total interest-bearing liabilities |
|
|
1,599,170 |
|
$ |
12,625 |
|
1.06% |
|
|
1,516,730 |
|
$ |
7,436 |
|
0.66% |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
1,186,985 |
|
|
|
|
|
|
|
1,118,408 |
|
|
|
|
|
|
Other liabilities |
|
|
35,791 |
|
|
|
|
|
|
|
21,744 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,222,776 |
|
|
|
|
|
|
|
1,140,152 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
508,849 |
|
|
|
|
|
|
|
459,435 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
3,330,795 |
|
|
|
|
|
|
$ |
3,116,317 |
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
102,202 |
|
|
|
|
|
|
$ |
91,441 |
|
|
|
Net interest spread (3) |
|
|
|
|
|
|
|
3.96% |
|
|
|
|
|
|
|
3.97% |
|
Net interest margin (4) |
|
|
|
|
|
|
|
4.47% |
|
|
|
|
|
|
|
4.29% |
|
Net interest margin—tax equivalent (5) |
|
|
|
|
|
|
|
4.51% |
|
|
|
|
|
|
|
4.32% |
(1)Annualized.
(2)Includes average outstanding balances related to loans held for sale.
(3)Net interest spread is the average yield on interest‑earning assets minus the average rate on interest‑bearing liabilities.
(4)Net interest margin is equal to net interest income divided by average interest‑earning assets.
(5)Tax equivalent adjustments of $770,000 and $798,000 for the nine months ended September 30, 2019 and September 30, 2018, respectively, were computed using a federal income tax rate of 21%.
9
CBTX, INC. AND SUBSIDIARY
Rate/Volume Analysis (Unaudited)
(In thousands)
|
|
|
Three Months Ended September 30, 2019, Compared to |
|
||||||||||
|
|
|
Three Months Ended June 30, 2019 |
|
||||||||||
|
|
|
Increase (Decrease) due to |
|
|
|
|
|||||||
|
(Dollars in thousands) |
|
Volume |
|
Rate |
|
Days |
|
Total |
|
||||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
889 |
|
$ |
(534) |
|
$ |
390 |
|
$ |
745 |
|
|
Securities |
|
|
8 |
|
|
(108) |
|
|
17 |
|
|
(83) |
|
|
Other interest-earning assets |
|
|
(23) |
|
|
(139) |
|
|
15 |
|
|
(147) |
|
|
Equity investments |
|
|
10 |
|
|
17 |
|
|
2 |
|
|
29 |
|
|
Total increase (decrease) in interest income |
|
|
884 |
|
|
(764) |
|
|
424 |
|
|
544 |
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
109 |
|
|
157 |
|
|
42 |
|
|
308 |
|
|
FHLB advances and repurchase agreements |
|
|
5 |
|
|
(51) |
|
|
6 |
|
|
(40) |
|
|
Note payable and junior subordinated debt |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total increase in interest expense |
|
|
114 |
|
|
106 |
|
|
48 |
|
|
268 |
|
|
Increase (decrease) in net interest income |
|
$ |
770 |
|
$ |
(870) |
|
$ |
376 |
|
$ |
276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019, Compared to |
|||||||
|
|
|
Three Months Ended September 30, 2018 |
|||||||
|
|
|
Increase (Decrease) due to |
|
|
|||||
|
(Dollars in thousands) |
|
Volume |
|
Rate |
|
Total |
|||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
3,295 |
|
$ |
1,545 |
|
$ |
4,840 |
|
Securities |
|
|
26 |
|
|
(125) |
|
|
(99) |
|
Other interest-earning assets |
|
|
(293) |
|
|
101 |
|
|
(192) |
|
Equity investments |
|
|
(8) |
|
|
(13) |
|
|
(21) |
|
Total increase in interest income |
|
|
3,020 |
|
|
1,508 |
|
|
4,528 |
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
53 |
|
|
1,116 |
|
|
1,169 |
|
FHLB advances and repurchase agreements |
|
|
398 |
|
|
24 |
|
|
422 |
|
Note payable and junior subordinated debt |
|
|
(112) |
|
|
— |
|
|
(112) |
|
Total increase in interest expense |
|
|
339 |
|
|
1,140 |
|
|
1,479 |
|
Increase in net interest income |
|
$ |
2,681 |
|
$ |
368 |
|
$ |
3,049 |
|
|
|
Nine Months Ended September 30, 2019, Compared to |
|||||||
|
|
|
Nine Months Ended September 30, 2018 |
|||||||
|
|
|
Increase (Decrease) due to |
|
|
|||||
|
(Dollars in thousands) |
|
Volume |
|
Rate |
|
Total |
|||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
8,285 |
|
$ |
7,001 |
|
$ |
15,286 |
|
Securities |
|
|
125 |
|
|
(91) |
|
|
34 |
|
Other interest-earning assets |
|
|
(253) |
|
|
973 |
|
|
720 |
|
Equity investments |
|
|
(40) |
|
|
(50) |
|
|
(90) |
|
Total increase in interest income |
|
|
8,117 |
|
|
7,833 |
|
|
15,950 |
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
182 |
|
|
4,319 |
|
|
4,501 |
|
FHLB advances and repurchase agreements |
|
|
889 |
|
|
108 |
|
|
997 |
|
Note payable and junior subordinated debt |
|
|
(314) |
|
|
5 |
|
|
(309) |
|
Total increase in interest expense |
|
|
757 |
|
|
4,432 |
|
|
5,189 |
|
Increase in net interest income |
|
$ |
7,360 |
|
$ |
3,401 |
|
$ |
10,761 |
10
CBTX, INC. AND SUBSIDIARY
Yield Trend (Unaudited)
|
|
|
Three Months Ended |
||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
Yield Trend - Annualized: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
5.43% |
|
5.51% |
|
5.48% |
|
5.37% |
|
5.20% |
|
Securities |
|
2.41% |
|
2.61% |
|
2.73% |
|
2.70% |
|
2.64% |
|
Other interest-earning assets |
|
2.25% |
|
2.48% |
|
2.51% |
|
2.30% |
|
2.04% |
|
Equity investments |
|
4.72% |
|
4.32% |
|
5.02% |
|
5.79% |
|
5.01% |
|
Total interest-earning assets |
|
4.98% |
|
5.07% |
|
5.03% |
|
4.87% |
|
4.70% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
1.05% |
|
1.01% |
|
0.94% |
|
0.89% |
|
0.77% |
|
FHLB advances and repurchase agreements |
|
2.26% |
|
2.51% |
|
2.28% |
|
0.21% |
|
1.94% |
|
Note payable and junior subordinated debt |
|
— |
|
— |
|
8.89% |
|
4.45% |
|
4.25% |
|
Total interest-bearing liabilities |
|
1.12% |
|
1.09% |
|
0.95% |
|
0.91% |
|
0.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread (1) |
|
3.86% |
|
3.98% |
|
4.08% |
|
3.96% |
|
3.90% |
|
Net interest margin (2) |
|
4.39% |
|
4.50% |
|
4.53% |
|
4.39% |
|
4.28% |
|
Net interest margin—tax equivalent (3) |
|
4.43% |
|
4.53% |
|
4.56% |
|
4.42% |
|
4.31% |
(1)Net interest spread is the average yield on interest‑earning assets minus the average rate on interest‑bearing liabilities.
(2)Net interest margin is equal to net interest income divided by average interest‑earning assets.
(3)Tax equivalent adjustments were computed using a federal income tax rate of 21%.
11
CBTX, INC. AND SUBSIDIARY
Average Outstanding Balances (Unaudited)
(In thousands)
|
|
|
Three Months Ended |
|||||||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|||||
|
Average Outstanding Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (1) |
|
$ |
2,655,941 |
|
$ |
2,591,928 |
|
$ |
2,500,788 |
|
$ |
2,468,415 |
|
$ |
2,404,491 |
|
Securities |
|
|
234,525 |
|
|
233,339 |
|
|
231,650 |
|
|
226,882 |
|
|
230,592 |
|
Other interest-earning assets |
|
|
215,900 |
|
|
219,639 |
|
|
239,281 |
|
|
293,299 |
|
|
272,739 |
|
Equity investments |
|
|
16,154 |
|
|
15,218 |
|
|
12,285 |
|
|
14,789 |
|
|
16,799 |
|
Total interest-earning assets |
|
|
3,122,520 |
|
|
3,060,124 |
|
|
2,984,004 |
|
|
3,003,385 |
|
|
2,924,621 |
|
Allowance for loan losses |
|
|
(25,422) |
|
|
(24,829) |
|
|
(24,016) |
|
|
(24,305) |
|
|
(25,689) |
|
Noninterest-earnings assets |
|
|
296,861 |
|
|
299,234 |
|
|
302,915 |
|
|
295,236 |
|
|
292,598 |
|
Total assets |
|
$ |
3,393,959 |
|
$ |
3,334,529 |
|
$ |
3,262,903 |
|
$ |
3,274,316 |
|
$ |
3,191,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,557,503 |
|
$ |
1,514,697 |
|
$ |
1,544,039 |
|
$ |
1,578,146 |
|
$ |
1,530,077 |
|
FHLB advances and repurchase agreements |
|
|
84,847 |
|
|
83,899 |
|
|
11,578 |
|
|
1,925 |
|
|
12,657 |
|
Note payable and junior subordinated debt |
|
|
— |
|
|
— |
|
|
365 |
|
|
9,817 |
|
|
10,826 |
|
Total interest-bearing liabilities |
|
|
1,642,350 |
|
|
1,598,596 |
|
|
1,555,982 |
|
|
1,589,888 |
|
|
1,553,560 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
1,189,087 |
|
|
1,194,645 |
|
|
1,177,086 |
|
|
1,181,035 |
|
|
1,145,516 |
|
Other liabilities |
|
|
39,775 |
|
|
32,991 |
|
|
34,634 |
|
|
23,083 |
|
|
23,600 |
|
Total noninterest-bearing liabilities |
|
|
1,228,862 |
|
|
1,227,636 |
|
|
1,211,720 |
|
|
1,204,118 |
|
|
1,169,116 |
|
Shareholders’ equity |
|
|
522,747 |
|
|
508,297 |
|
|
495,201 |
|
|
480,310 |
|
|
468,854 |
|
Total liabilities and shareholders’ equity |
|
$ |
3,393,959 |
|
$ |
3,334,529 |
|
$ |
3,262,903 |
|
$ |
3,274,316 |
|
$ |
3,191,530 |
(1)Includes average outstanding balances of loans held for sale.
12
CBTX, INC. AND SUBSIDIARY
Period End Balances (Unaudited)
(In thousands, except percentages)
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|||||||||||||||
|
|
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
523,831 |
|
19.5% |
|
$ |
540,084 |
|
20.4% |
|
$ |
559,882 |
|
21.9% |
|
$ |
519,779 |
|
21.2% |
|
$ |
569,334 |
|
23.1% |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
875,329 |
|
32.6% |
|
|
854,513 |
|
32.2% |
|
|
811,742 |
|
31.8% |
|
|
795,733 |
|
32.4% |
|
|
776,439 |
|
31.4% |
|
Construction and development |
|
|
572,276 |
|
21.4% |
|
|
559,672 |
|
21.1% |
|
|
572,861 |
|
22.5% |
|
|
515,533 |
|
21.0% |
|
|
487,289 |
|
19.7% |
|
1-4 family residential |
|
|
287,434 |
|
10.7% |
|
|
281,525 |
|
10.6% |
|
|
281,502 |
|
11.0% |
|
|
282,011 |
|
11.5% |
|
|
288,737 |
|
11.7% |
|
Multi-family residential |
|
|
298,396 |
|
11.1% |
|
|
298,887 |
|
11.3% |
|
|
213,582 |
|
8.4% |
|
|
221,194 |
|
9.0% |
|
|
236,907 |
|
9.6% |
|
Consumer |
|
|
37,975 |
|
1.4% |
|
|
39,803 |
|
1.5% |
|
|
39,072 |
|
1.5% |
|
|
39,421 |
|
1.6% |
|
|
39,807 |
|
1.6% |
|
Agricultural |
|
|
10,836 |
|
0.4% |
|
|
9,923 |
|
0.4% |
|
|
8,915 |
|
0.4% |
|
|
11,076 |
|
0.5% |
|
|
11,609 |
|
0.5% |
|
Other |
|
|
76,860 |
|
2.9% |
|
|
65,471 |
|
2.5% |
|
|
64,215 |
|
2.5% |
|
|
68,382 |
|
2.8% |
|
|
59,484 |
|
2.4% |
|
Gross loans |
|
|
2,682,937 |
|
100.0% |
|
|
2,649,878 |
|
100.0% |
|
|
2,551,771 |
|
100.0% |
|
|
2,453,129 |
|
100.0% |
|
|
2,469,606 |
|
100.0% |
|
Less deferred fees and unearned discount |
|
|
(6,113) |
|
|
|
|
(6,181) |
|
|
|
|
(6,210) |
|
|
|
|
(6,306) |
|
|
|
|
(6,025) |
|
|
|
Less allowance for loan losses |
|
|
(25,576) |
|
|
|
|
(25,342) |
|
|
|
|
(24,643) |
|
|
|
|
(23,693) |
|
|
|
|
(24,486) |
|
|
|
Less loans held for sale |
|
|
— |
|
|
|
|
(1,408) |
|
|
|
|
(852) |
|
|
|
|
— |
|
|
|
|
(384) |
|
|
|
Loans, net |
|
$ |
2,651,248 |
|
|
|
$ |
2,616,947 |
|
|
|
$ |
2,520,066 |
|
|
|
$ |
2,423,130 |
|
|
|
$ |
2,438,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand accounts |
|
$ |
337,746 |
|
12.3% |
|
$ |
351,326 |
|
12.8% |
|
$ |
352,623 |
|
12.8% |
|
$ |
387,457 |
|
14.0% |
|
$ |
367,120 |
|
13.6% |
|
Money market accounts |
|
|
739,436 |
|
26.9% |
|
|
717,883 |
|
26.2% |
|
|
695,968 |
|
25.3% |
|
|
737,770 |
|
26.7% |
|
|
722,382 |
|
26.9% |
|
Savings accounts |
|
|
91,413 |
|
3.3% |
|
|
91,828 |
|
3.4% |
|
|
96,251 |
|
3.5% |
|
|
96,962 |
|
3.5% |
|
|
94,344 |
|
3.5% |
|
Certificates and other time deposits, $100,000 or greater |
|
|
198,561 |
|
7.3% |
|
|
189,741 |
|
6.9% |
|
|
181,507 |
|
6.6% |
|
|
189,007 |
|
6.8% |
|
|
182,552 |
|
6.8% |
|
Certificates and other time deposits, less than $100,000 |
|
|
180,451 |
|
6.6% |
|
|
186,842 |
|
6.8% |
|
|
195,478 |
|
7.1% |
|
|
172,028 |
|
6.2% |
|
|
178,697 |
|
6.6% |
|
Total interest-bearing deposits |
|
|
1,547,607 |
|
56.4% |
|
|
1,537,620 |
|
56.1% |
|
|
1,521,827 |
|
55.3% |
|
|
1,583,224 |
|
57.2% |
|
|
1,545,095 |
|
57.4% |
|
Noninterest-bearing deposits |
|
|
1,196,720 |
|
43.6% |
|
|
1,201,287 |
|
43.9% |
|
|
1,229,172 |
|
44.7% |
|
|
1,183,058 |
|
42.8% |
|
|
1,144,985 |
|
42.6% |
|
Total deposits |
|
$ |
2,744,327 |
|
100.0% |
|
$ |
2,738,907 |
|
100.0% |
|
$ |
2,750,999 |
|
100.0% |
|
$ |
2,766,282 |
|
100.0% |
|
$ |
2,690,080 |
|
100.0% |
13
CBTX, INC. AND SUBSIDIARY
Credit Quality (Unaudited)
(In thousands, except percentages)
|
|
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|||||
|
Nonperforming assets (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
354 |
|
|
$ |
1,795 |
|
|
$ |
1,390 |
|
|
$ |
1,317 |
|
|
$ |
2,161 |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
159 |
|
|
|
850 |
|
|
|
862 |
|
|
|
1,517 |
|
|
|
2,751 |
|
|
Construction and development |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
1-4 family residential |
|
|
629 |
|
|
|
624 |
|
|
|
635 |
|
|
|
656 |
|
|
|
677 |
|
|
Multi-family residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
— |
|
|
Agricultural |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Nonaccrual loans |
|
|
1,142 |
|
|
|
3,269 |
|
|
|
2,934 |
|
|
|
3,490 |
|
|
|
5,602 |
|
|
Accruing loans 90 or more days past due |
|
|
— |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total nonperforming loans |
|
|
1,142 |
|
|
|
3,278 |
|
|
|
2,934 |
|
|
|
3,490 |
|
|
|
5,602 |
|
|
Foreclosed assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
12 |
|
|
|
175 |
|
|
Other |
|
|
— |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
— |
|
|
Total foreclosed assets |
|
|
— |
|
|
|
36 |
|
|
|
41 |
|
|
|
12 |
|
|
|
175 |
|
|
Total nonperforming assets |
|
$ |
1,142 |
|
|
$ |
3,314 |
|
|
$ |
2,975 |
|
|
$ |
3,502 |
|
|
$ |
5,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
7,470 |
|
|
$ |
7,792 |
|
|
$ |
8,416 |
|
|
$ |
7,719 |
|
|
$ |
8,763 |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
7,788 |
|
|
|
7,371 |
|
|
|
6,784 |
|
|
|
6,730 |
|
|
|
6,913 |
|
|
Construction and development |
|
|
4,825 |
|
|
|
4,579 |
|
|
|
4,700 |
|
|
|
4,298 |
|
|
|
3,606 |
|
|
1-4 family residential |
|
|
2,338 |
|
|
|
2,236 |
|
|
|
2,249 |
|
|
|
2,281 |
|
|
|
2,454 |
|
|
Multi-family residential |
|
|
1,829 |
|
|
|
2,178 |
|
|
|
1,457 |
|
|
|
1,511 |
|
|
|
1,630 |
|
|
Consumer |
|
|
558 |
|
|
|
458 |
|
|
|
357 |
|
|
|
387 |
|
|
|
394 |
|
|
Agricultural |
|
|
82 |
|
|
|
73 |
|
|
|
50 |
|
|
|
62 |
|
|
|
71 |
|
|
Other |
|
|
686 |
|
|
|
655 |
|
|
|
630 |
|
|
|
705 |
|
|
|
655 |
|
|
Total allowance for loan losses |
|
$ |
25,576 |
|
|
$ |
25,342 |
|
|
$ |
24,643 |
|
|
$ |
23,693 |
|
|
$ |
24,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Ratios (at period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.03% |
|
|
|
0.10% |
|
|
|
0.09% |
|
|
|
0.11% |
|
|
|
0.18% |
|
|
Nonperforming loans to total loans |
|
|
0.04% |
|
|
|
0.12% |
|
|
|
0.12% |
|
|
|
0.14% |
|
|
|
0.23% |
|
|
Allowance for loan losses to nonperforming loans |
|
|
2239.58% |
|
|
|
773.09% |
|
|
|
839.91% |
|
|
|
678.88% |
|
|
|
437.09% |
|
|
Allowance for loan losses to total loans |
|
|
0.96% |
|
|
|
0.96% |
|
|
|
0.97% |
|
|
|
0.97% |
|
|
|
0.99% |
|
14
CBTX, INC. AND SUBSIDIARY
Allowance for Loan Losses (Unaudited)
(In thousands, except percentages)
|
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
|||||
|
Analysis of Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses at beginning of period |
|
$ |
25,342 |
|
$ |
24,643 |
|
$ |
23,693 |
|
$ |
24,486 |
|
$ |
25,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (recapture) for loan losses |
|
|
579 |
|
|
807 |
|
|
1,147 |
|
|
(2,169) |
|
|
(1,142) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs) recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
(374) |
|
|
22 |
|
|
(206) |
|
|
1,521 |
|
|
(114) |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
33 |
|
|
2 |
|
|
2 |
|
|
(156) |
|
|
(3) |
|
|
Construction and development |
|
|
— |
|
|
— |
|
|
— |
|
|
(1) |
|
|
— |
|
|
1-4 family residential |
|
|
1 |
|
|
(11) |
|
|
1 |
|
|
— |
|
|
4 |
|
|
Consumer |
|
|
(1) |
|
|
(78) |
|
|
6 |
|
|
1 |
|
|
(4) |
|
|
Agricultural |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
Other |
|
|
(4) |
|
|
(43) |
|
|
— |
|
|
1 |
|
|
(1) |
|
|
Total net (charge-offs) recoveries |
|
|
(345) |
|
|
(108) |
|
|
(197) |
|
|
1,376 |
|
|
(118) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses at end of period |
|
$ |
25,576 |
|
$ |
25,342 |
|
$ |
24,643 |
|
$ |
23,693 |
|
$ |
24,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) to average loans(1) |
|
|
0.05% |
|
|
0.02% |
|
|
0.03% |
|
|
(0.22%) |
|
|
0.02% |
|
(1)Annualized.
15
CBTX, INC. AND SUBSIDIARY
Non‑GAAP to GAAP Reconciliation (Unaudited)
(In thousands, except per share data and percentages)
Our accounting and reporting policies conform to GAAP and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional non‑GAAP financial measures. We classify a financial measure as being a non‑GAAP financial measure if that financial measure excludes or includes amounts or is subject to adjustments that have the effect of excluding or including amounts, that are not included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non‑GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP. Non‑GAAP financial measures 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 way we calculate the non‑GAAP financial measures may differ from that of other companies reporting measures with similar names.
We calculate tangible equity as total shareholders’ equity, less goodwill and other intangible assets, net of accumulated amortization, and tangible book value per share as tangible equity divided by shares of common stock outstanding at the end of the relevant period. The most directly comparable GAAP financial measure for tangible book value per share is book value per share.
We calculate tangible assets as total assets less goodwill and other intangible assets, net of accumulated amortization. The most directly comparable GAAP financial measure for tangible equity to tangible assets is total shareholders’ equity to total assets.
We believe that tangible book value per share and tangible equity to tangible assets are measures that are important to many investors in the marketplace who are interested in book value per share and total shareholders’ equity to total assets, exclusive of change in intangible assets.
The following table reconciles, as of the dates set forth below, total shareholders’ equity to tangible equity, total assets to tangible assets and presents book value per share, tangible book value per share, tangible equity to tangible assets and total shareholders’ equity to total assets:
|
|
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|||||
|
Tangible Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
$ |
525,220 |
|
|
$ |
513,158 |
|
|
$ |
498,653 |
|
|
$ |
487,625 |
|
|
$ |
471,851 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
Other intangibles |
|
|
5,106 |
|
|
|
5,318 |
|
|
|
5,538 |
|
|
|
5,775 |
|
|
|
6,038 |
|
|
Tangible equity |
|
$ |
439,164 |
|
|
$ |
426,890 |
|
|
$ |
412,165 |
|
|
$ |
400,900 |
|
|
$ |
384,863 |
|
|
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,431,585 |
|
|
$ |
3,379,506 |
|
|
$ |
3,283,462 |
|
|
$ |
3,279,096 |
|
|
$ |
3,190,453 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
|
80,950 |
|
|
Other intangibles |
|
|
5,106 |
|
|
|
5,318 |
|
|
|
5,538 |
|
|
|
5,775 |
|
|
|
6,038 |
|
|
Tangible assets |
|
$ |
3,345,529 |
|
|
$ |
3,293,238 |
|
|
$ |
3,196,974 |
|
|
$ |
3,192,371 |
|
|
$ |
3,103,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
24,923 |
|
|
|
24,923 |
|
|
|
24,918 |
|
|
|
24,907 |
|
|
|
24,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
21.07 |
|
|
$ |
20.59 |
|
|
$ |
20.01 |
|
|
$ |
19.58 |
|
|
$ |
18.98 |
|
|
Tangible book value per share |
|
$ |
17.62 |
|
|
$ |
17.13 |
|
|
$ |
16.54 |
|
|
$ |
16.10 |
|
|
$ |
15.48 |
|
|
Total shareholders’ equity to total assets |
|
|
15.31% |
|
|
|
15.18% |
|
|
|
15.19% |
|
|
|
14.87% |
|
|
|
14.79% |
|
|
Tangible equity to tangible assets |
|
|
13.13% |
|
|
|
12.96% |
|
|
|
12.89% |
|
|
|
12.56% |
|
|
|
12.40% |
|
16
Investor Relations:
Justin M. Long
281.325.5013
investors@CBoTX.com
Media Contact:
Ashley Warren
713.210.7622
awarren@CBoTX.com
17