Texas | 001-35854 | 13-4219346 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description of Exhibit |
Exhibit 99.1 | Press Release issued by Independent Bank Group, Inc., dated April 30, 2014 |
By: | /s/ David R. Brooks |
Name: | David R. Brooks |
Title: | Chairman and Chief Executive Officer |
Exhibit No. | Description of Exhibit |
Exhibit 99.1 | Press Release issued by Independent Bank Group, Inc., dated April 30, 2014 |
• | Core net income was $5.0 million, or $0.39 per diluted share, for the quarter ended March 31, 2014 compared to $4.9 million, or $0.40 per diluted share, for the quarter ended December 31, 2013 and to $3.7 million, or $0.44 per diluted share, for the quarter ended March 31, 2013. |
• | Loans held for investment grew organically at an annualized rate of 23.2% in the first quarter 2014. |
• | Continued strong asset quality, as reflected by a nonperforming assets to total assets ratio of 0.51%, a nonperforming loans to total loans ratio of 0.48%, and an annualized net charge-offs to average loans ratio of 0.08% at March 31, 2014. |
• | Completion of the acquisitions of Live Oak Financial Corp. on January 1, 2014 and BOH Holdings, Inc. and its subsidiary, Bank of Houston, on April 15, 2014. |
• | Net interest income was $22.1 million for first quarter 2014 compared to $20.0 million for fourth quarter 2013 and $18.2 million for first quarter 2013. The increase in net interest income was primarily due to increased average loan balances from organic growth as well as the Live Oak and Collin Bank acquisitions. |
• | Net interest margin was 4.17% for first quarter 2014 compared to 4.23% for fourth quarter 2013 and 4.67% for first quarter 2013. The decrease from the linked quarter is primarily due to a 10 basis point decrease in loan yield caused by an increase in variable rate loans originated during the fourth quarter 2013 and the first quarter 2014. This decrease was partially offset by an increase in accretion income on acquired loans. The decrease from the prior year is due to a 75 basis point decrease in yield on interest earning assets partially offset by a decrease of 24 basis points of the cost of interest bearing liabilities. |
• | The yield on interest-earning assets was 4.74% for first quarter 2014 compared to 4.84% for fourth quarter 2013 and 5.49% for first quarter 2013. The cost of interest bearing liabilities, including borrowings, dropped to 0.71% for first quarter 2014 from 0.76% for fourth quarter 2013 and 0.95% for first quarter 2013 due to a decrease in the cost of deposits and the repayment of notes payable and subordinated indebtedness during 2013. |
• | The average balance of total interest-earning assets grew by $279 million, or 14.9% (60.4% on an annualized basis), from the end of fourth quarter 2013 and totaled $2.151 billion compared to $1.872 billion at December 31, 2013 and compared to $1.584 billion at March 31, 2013. A large portion of the increase in average interest-earning assets was due to organic growth during the first quarter with the remainder of the increase due to the Live Oak acquisition that closed on January 1, 2014. |
• | Total noninterest income decreased $1.1 million compared to fourth quarter 2013 and decreased $92 thousand compared to first quarter 2013. |
• | The decrease in noninterest income compared to fourth quarter 2013 is the result of a $1.3 million decrease in gains on sale of other real estate offset by a $107 thousand increase in mortgage fee income, a $41 thousand increase in earnings in cash surrender value of bank owned life insurance (BOLI) and an $80 thousand increase in other noninterest income. |
• | The decrease in noninterest income compared to first quarter 2013 reflects a $336 thousand decrease in mortgage fee income which is offset by an increase of $72 thousand in deposit service fees, a $68 thousand increase in earnings on cash surrender value of BOLI and a $91 thousand increase in other noninterest income. |
• | Total noninterest expense increased $362 thousand compared to fourth quarter 2013 and $2.2 million compared to first quarter 2013. |
• | The increase in noninterest expense compared to fourth quarter 2013 is due primarily to an increase of $986 thousand in salaries and benefits, $118 thousand increase in data processing, $170 thousand seasonal increase in advertising and public relations and $122 thousand increase in other noninterest expense. The increased employee compensation and data processing costs are primarily related to the acquisition of Live Oak Financial Corp. which was completed January 1, 2014. In addition, approximately $336 thousand of compensation expense was incurred related to vesting of stock grants. These increases in operating expenses are offset by decreases of $878 thousand and $183 thousand in acquisition expenses and IBG Adriatica operational expenses, respectively. |
• | The increase in noninterest expense compared to the prior year period is primarily related to increases in compensation, occupancy, acquisition-related and other general noninterest expenses resulting from completed acquisitions and the hiring of new lending personnel throughout 2013. These increases, due primarily to acquisition activity, were offset by a decrease in OREO-related expenses and impairment during the first quarter of 2014. |
• | Provision for loan loss expense was $1.3 million for the quarter, an increase of $370 thousand compared to $883 thousand for fourth quarter 2013 and an increase of $223 thousand compared to $1.0 million during first quarter 2013. The increase in provision expense is reflective of organic loan growth in the respective quarter. |
• | The allowance for loan losses was $14.8 million, or 162.96% and 0.78% of nonperforming loans and total loans, respectively, at March 31, 2014, compared to $14.0 million, or 205.93% and 0.81% of nonperforming loans and total loans, respectively, at December 31, 2013, and compared to $12.0 million, or 209.73% and 0.85% of nonperforming loans and total loans, respectively, at March 31, 2013. These decreases are due to an increase in nonperforming loans as well as the acquisition of loans in the Live Oak transaction that were recorded at fair value and do not have an allowance. |
• | Loans acquired in the Live Oak transaction do not have an allowance for loan losses as of March 31, 2014. Rather, those assets were recorded at an estimated fair market value of $71.1 million to reflect the probability of losses on those loans as of the acquisition date. |
• | The Company became a C corporation on April 1, 2013 and its results of operations include federal income tax expense subsequent to that date. Federal income tax expense of $2.3 million was recorded for the quarter ended March 31, 2014, an effective rate of 32.8% compared to tax expense of $2.5 million and an effective rate of 36.8% for the quarter ended December 31, 2013. If the Company had been a C corporation in the first quarter of 2013, we estimate that the effective tax rate for that quarter would have been 32.8%. The increase in the effective tax rate in the fourth quarter 2013 was primarily related to legal and professional fees associated with facilitating acquisitions that are not deductible for federal income tax purposes. |
• | Total loans held for investment were $1.893 billion at March 31, 2014 compared to $1.723 billion at December 31, 2013 and compared to $1.416 billion at March 31, 2013. This represented a 9.9% increase since the previous quarter end and a 33.7% increase from the same quarter in 2013. Of this loan growth in the first quarter, 5.8% was organic growth and 4.1% related to loans acquired in the Live Oak acquisition. |
• | Since December 31, 2013, loan growth has been centered in commercial real estate loans ($84 million), C&I loans ($29 million) and in commercial and single family construction loans ($34 million). |
• | Continued focus on commercial lending increased the C&I portfolio from $241.2 million (14.0% of total loans) at December 31, 2013 to $270.6 million (14.3% of total loans) at March 31, 2014. |
• | Total nonperforming assets increased to $12.0 million, or 0.51% of total assets at March 31, 2014 from $10.1 million, or 0.47% of total assets at December 31, 2013 and decreased significantly from $23.9 million, or 1.35% of total assets at March 31, 2013. The significant decrease from the same quarter prior year is due to the sale of the remaining Adriatica real estate and other real estate sales in the fourth quarter 2013. |
• | Total nonperforming loans also increased to $9.1 million, or 0.48% of total loans at March 31, 2014 compared to $6.8 million, or 0.39% of total loans at December 30, 2013, and compared to $5.7 million, or 0.40% of total loans at March 31, 2013. |
• | Total deposits were $1.891 billion at March 31, 2014 compared to $1.710 billion at December 31, 2013 and compared to $1.415 billion at March 31, 2013. |
• | The average cost of interest bearing deposits decreased by three basis points during the first quarter to 0.51% compared to 0.54% during fourth quarter 2013 and decreased by 10 basis points compared to 0.61% during the first quarter 2013. |
• | Total borrowings (other than junior subordinated debentures) were $186.7 million at March 31, 2014, a decrease of $8.5 million from December 31, 2013 and a decrease of $13.5 million from March 31, 2013. The decrease from year end reflects a repayment of FHLB advances of approximately $13.0 million offset by an assumption of repurchase agreements of $4.5 million in the Live Oak transaction. The decrease from first quarter 2013 includes the repayment of approximately $13.0 million of subordinated debt subsequent to the IPO. |
• | The tangible common equity to tangible assets and the Tier 1 capital to average assets ratios were 8.93% and 9.77%, respectively, at March 31, 2014 compared to 9.21% and 10.71%, respectively, at December 31, 2013 and 5.33% and 6.29%, respectively, at March 31, 2013. The total stockholders’ equity to total assets ratio was 10.73%, 10.80% and 7.04% at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. The decrease in capital ratios compared to year end was primarily due to the Live Oak acquisition as well as the increase in assets resulting from organic growth. The increase in capital ratios for first quarter 2014 and fourth quarter 2013 compared to first quarter 2013 was due primarily to the capital received from the initial public offering. |
• | Book value and tangible book value per common share were $20.05 and $16.37, respectively, at March 31, 2014 compared to $18.96 and $15.89, respectively, at December 31, 2013 and $15.01 and $11.16, respectively, at March 31, 2013. |
• | Return on average assets and return on average equity (on an annualized basis) were 0.84% and 7.90%, respectively, for first quarter 2014 compared to 0.83% and 7.61%, respectively, for fourth quarter 2013 and 1.33% and 18.49%, respectively, for first quarter 2013. On a core pre-tax, pre-provision earnings basis, return on average assets and return on average equity (on an annualized basis) were 1.51% and 14.24%, respectively, for first quarter 2014 compared to 1.58% and 14.48%, respectively, for fourth quarter 2013 and 1.52% and 21.14%, respectively, for first quarter 2013. |
Torry Berntsen President and Chief Operating Officer (972) 562-9004 tberntsen@ibtx.com | Michelle Hickox Executive Vice President and Chief Financial Officer (972) 562-9004 mhickox@ibtx.com |
Eileen Ponce Marketing Director (469) 301-2706 eponce@ibtx.com |
As of and for the quarter ended | |||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||
Selected Income Statement Data | |||||||||||
Interest income | $ | 25,162 | $ | 22,847 | $ | 21,421 | |||||
Interest expense | 3,027 | 2,894 | 3,206 | ||||||||
Net interest income | 22,135 | 19,953 | 18,215 | ||||||||
Provision for loan losses | 1,253 | 883 | 1,030 | ||||||||
Net interest income after provision for loan losses | 20,882 | 19,070 | 17,185 | ||||||||
Noninterest income | 2,334 | 3,412 | 2,426 | ||||||||
Noninterest expense | 16,076 | 15,714 | 13,923 | ||||||||
Net income | 4,801 | 4,279 | 5,688 | ||||||||
Proforma net income-after tax (2) | n/a | n/a | 3,822 | ||||||||
Core net interest income (1) | 21,772 | 19,886 | 17,147 | ||||||||
Core Pre-Tax Pre-Provision Earnings (1) | 8,652 | 8,141 | 6,499 | ||||||||
Core Earnings (1) (2) | 4,972 | 4,870 | 3,675 | ||||||||
Per Share Data (Common Stock) | |||||||||||
Earnings: | |||||||||||
Basic | $ | 0.38 | $ | 0.35 | $ | 0.69 | |||||
Diluted | 0.38 | 0.35 | 0.68 | ||||||||
Pro forma earnings: | |||||||||||
Basic (2) | n/a | n/a | 0.46 | ||||||||
Diluted (2) | n/a | n/a | 0.46 | ||||||||
Core earnings: | |||||||||||
Basic (1) | 0.40 | 0.40 | 0.44 | ||||||||
Diluted (1) | 0.39 | 0.40 | 0.44 | ||||||||
Dividends | 0.06 | 0.06 | 0.65 | ||||||||
Book value | 20.05 | 18.96 | 15.01 | ||||||||
Tangible book value (1) | 16.37 | 15.89 | 11.16 | ||||||||
Common shares outstanding | 12,592,935 | 12,330,158 | 8,269,707 | ||||||||
Weighted average basic shares outstanding (4) | 12,583,874 | 12,164,948 | 8,269,707 | ||||||||
Weighted average diluted shares outstanding (4) | 12,685,517 | 12,252,862 | 8,312,154 | ||||||||
Selected Period End Balance Sheet Data | |||||||||||
Total assets | $ | 2,353,675 | $ | 2,163,984 | $ | 1,764,134 | |||||
Cash and cash equivalents | 97,715 | 93,054 | 80,890 | ||||||||
Securities available for sale | 204,539 | 194,038 | 114,540 | ||||||||
Loans, held for sale | 2,191 | 3,383 | 6,090 | ||||||||
Loans, held for investment | 1,893,082 | 1,723,160 | 1,415,906 | ||||||||
Allowance for loan losses | 14,841 | 13,960 | 11,984 | ||||||||
Goodwill and core deposit intangible | 46,388 | 37,852 | 31,817 | ||||||||
Other real estate owned | 2,909 | 3,322 | 8,459 | ||||||||
Adriatica real estate owned | — | — | 9,724 | ||||||||
Noninterest-bearing deposits | 352,735 | 302,756 | 243,235 | ||||||||
Interest-bearing deposits | 1,537,942 | 1,407,563 | 1,171,864 | ||||||||
Borrowings (other than junior subordinated debentures) | 186,727 | 195,214 | 200,234 | ||||||||
Junior subordinated debentures | 18,147 | 18,147 | 18,147 | ||||||||
Total stockholders' equity | 252,508 | 233,772 | 124,142 |
As of and for the quarter ended | ||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||||
Selected Performance Metrics | ||||||||
Return on average assets | 0.84 | % | 0.83 | % | 1.33 | % | ||
Return on average equity | 7.90 | 7.61 | 18.49 | |||||
Pro forma return on average assets (2) | n/a | n/a | 0.89 | |||||
Pro forma return on average equity (2) | n/a | n/a | 12.43 | |||||
Adjusted return on average assets (1) | 1.51 | 1.58 | 1.52 | |||||
Adjusted return on average equity (1) | 14.24 | 14.48 | 21.14 | |||||
Net interest margin | 4.17 | 4.23 | 4.67 | |||||
Adjusted net interest margin (3) | 4.10 | 4.21 | 4.40 | |||||
Efficiency ratio | 65.70 | 67.25 | 67.50 | |||||
Core efficiency ratio (1) | 64.05 | 62.97 | 66.80 | |||||
Credit Quality Ratios | ||||||||
Nonperforming assets to total assets | 0.51 | % | 0.47 | % | 1.35 | % | ||
Nonperforming loans to total loans | 0.48 | 0.39 | 0.40 | |||||
Allowance for loan losses to non-performing loans | 162.96 | 205.93 | 209.73 | |||||
Allowance for loan losses to total loans | 0.78 | 0.81 | 0.85 | |||||
Net charge-offs to average loans outstanding (annualized) | 0.08 | 0.02 | 0.15 | |||||
Capital Ratios | ||||||||
Tier 1 capital to average assets | 9.77 | % | 10.71 | % | 6.29 | % | ||
Tier 1 capital to risk-weighted assets (1) | 11.96 | 12.64 | 8.01 | |||||
Total capital to risk-weighted assets | 13.08 | 13.83 | 10.20 | |||||
Total stockholders' equity to total assets | 10.73 | 10.80 | 7.04 | |||||
Tangible common equity to tangible assets (1) | 8.93 | 9.21 | 5.33 | |||||
(1) Non-GAAP financial measures. See reconciliation. | ||||||||
(2) Income tax expense calculated using effective tax rate as if the Company had been a C corporation for the period presented (32.8%). | ||||||||
(3) Excludes income recognized on acquired loans of $363, $67 and $1,068, respectively. | ||||||||
(4) Total number of shares includes participating shares (those with dividend rights). |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Interest income: | |||||||
Interest and fees on loans | $ | 24,123 | $ | 20,759 | |||
Interest on taxable securities | 699 | 333 | |||||
Interest on nontaxable securities | 257 | 249 | |||||
Interest on federal funds sold and other | 83 | 80 | |||||
Total interest income | 25,162 | 21,421 | |||||
Interest expense: | |||||||
Interest on deposits | 1,907 | 1,728 | |||||
Interest on FHLB advances | 852 | 828 | |||||
Interest on repurchase agreements, notes payable and other borrowings | 135 | 515 | |||||
Interest on junior subordinated debentures | 133 | 135 | |||||
Total interest expense | 3,027 | 3,206 | |||||
Net interest income | 22,135 | 18,215 | |||||
Provision for loan losses | 1,253 | 1,030 | |||||
Net interest income after provision for loan losses | 20,882 | 17,185 | |||||
Noninterest income: | |||||||
Service charges on deposit accounts | 1,211 | 1,139 | |||||
Mortgage fee income | 730 | 1,066 | |||||
Gain on sale of other real estate | 39 | 25 | |||||
Loss on sale of premises and equipment | — | 1 | |||||
Increase in cash surrender value of BOLI | 149 | 81 | |||||
Other | 205 | 114 | |||||
Total noninterest income | 2,334 | 2,426 | |||||
Noninterest expense: | |||||||
Salaries and employee benefits | 9,134 | 7,748 | |||||
Occupancy | 2,538 | 2,147 | |||||
Data processing | 496 | 296 | |||||
FDIC assessment | 304 | 246 | |||||
Advertising and public relations | 234 | 216 | |||||
Communications | 320 | 340 | |||||
Net other real estate owned expenses (including taxes) | 79 | 166 | |||||
Operations of IBG Adriatica, net | 23 | 197 | |||||
Other real estate impairment | — | 448 | |||||
Core deposit intangible amortization | 199 | 176 | |||||
Professional fees | 368 | 272 | |||||
Acquisition expense, including legal | 476 | 137 | |||||
Other | 1,905 | 1,534 | |||||
Total noninterest expense | 16,076 | 13,923 | |||||
Income before taxes | 7,140 | 5,688 | |||||
Income tax expense | 2,339 | — | |||||
Net income | $ | 4,801 | $ | 5,688 | |||
Pro Forma: | |||||||
Income tax expense (1) | n/a | 1,866 | |||||
Net income | n/a | $ | 3,822 |
March 31, | December 31, | ||||||
Assets | 2014 | 2013 | |||||
Cash and due from banks | $ | 32,771 | $ | 27,408 | |||
Federal Reserve Excess Balance Account (EBA) | 64,944 | 65,646 | |||||
Cash and cash equivalents | 97,715 | 93,054 | |||||
Securities available for sale | 204,539 | 194,038 | |||||
Loans held for sale | 2,191 | 3,383 | |||||
Loans, net of allowance for loan losses | 1,878,241 | 1,709,200 | |||||
Premises and equipment, net | 74,461 | 72,735 | |||||
Other real estate owned | 2,909 | 3,322 | |||||
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 9,012 | 9,494 | |||||
Bank-owned life insurance (BOLI) | 21,421 | 21,272 | |||||
Deferred tax asset | 3,937 | 4,834 | |||||
Goodwill | 42,575 | 34,704 | |||||
Core deposit intangible, net | 3,813 | 3,148 | |||||
Other assets | 12,861 | 14,800 | |||||
Total assets | $ | 2,353,675 | $ | 2,163,984 | |||
Liabilities and Stockholders’ Equity | |||||||
Deposits: | |||||||
Noninterest-bearing | 352,735 | 302,756 | |||||
Interest-bearing | 1,537,942 | 1,407,563 | |||||
Total deposits | 1,890,677 | 1,710,319 | |||||
FHLB advances | 174,462 | 187,484 | |||||
Repurchase agreements | 4,535 | — | |||||
Other borrowings | 4,460 | 4,460 | |||||
Other borrowings, related parties | 3,270 | 3,270 | |||||
Junior subordinated debentures | 18,147 | 18,147 | |||||
Other liabilities | 5,616 | 6,532 | |||||
Total liabilities | 2,101,167 | 1,930,212 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 126 | 123 | |||||
Additional paid-in capital | 235,225 | 222,116 | |||||
Retained earnings | 16,708 | 12,663 | |||||
Accumulated other comprehensive income | 449 | (1,130 | ) | ||||
Total stockholders’ equity | 252,508 | 233,772 | |||||
Total liabilities and stockholders’ equity | $ | 2,353,675 | $ | 2,163,984 |
For The Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 1,835,154 | $ | 24,123 | 5.33 | % | $ | 1,397,215 | $ | 20,759 | 6.03 | % | |||||||||
Taxable securities | 174,880 | 699 | 1.62 | 82,370 | 333 | 1.64 | |||||||||||||||
Nontaxable securities | 32,282 | 257 | 3.23 | 31,815 | 249 | 3.17 | |||||||||||||||
Federal funds sold and other | 108,676 | 83 | 0.31 | 72,115 | 80 | 0.45 | |||||||||||||||
Total interest-earning assets | 2,150,992 | $ | 25,162 | 4.74 | 1,583,515 | $ | 21,421 | 5.49 | |||||||||||||
Noninterest-earning assets | 179,940 | 150,409 | |||||||||||||||||||
Total assets | $ | 2,330,932 | $ | 1,733,924 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Checking accounts | $ | 814,583 | $ | 998 | 0.50 | % | $ | 694,492 | $ | 946 | 0.55 | % | |||||||||
Savings accounts | 122,038 | 88 | 0.29 | 114,429 | 91 | 0.32 | |||||||||||||||
Money market accounts | 91,836 | 56 | 0.25 | 38,610 | 24 | 0.25 | |||||||||||||||
Certificates of deposit | 487,408 | 765 | 0.64 | 304,147 | 667 | 0.89 | |||||||||||||||
Total deposits | 1,515,865 | 1,907 | 0.51 | 1,151,678 | 1,728 | 0.61 | |||||||||||||||
FHLB advances | 178,375 | 852 | 1.94 | 164,582 | 828 | 2.04 | |||||||||||||||
Repurchase agreements, notes payable and other borrowings | 11,773 | 135 | 4.65 | 36,100 | 515 | 5.79 | |||||||||||||||
Junior subordinated debentures | 18,147 | 133 | 2.97 | 18,147 | 135 | 3.02 | |||||||||||||||
Total interest-bearing liabilities | 1,724,160 | 3,027 | 0.71 | 1,370,507 | 3,206 | 0.95 | |||||||||||||||
Noninterest-bearing checking accounts | 350,136 | 235,125 | |||||||||||||||||||
Noninterest-bearing liabilities | 10,229 | 3,561 | |||||||||||||||||||
Stockholders’ equity | 246,407 | 124,731 | |||||||||||||||||||
Total liabilities and equity | $ | 2,330,932 | $ | 1,733,924 | |||||||||||||||||
Net interest income | $ | 22,135 | $ | 18,215 | |||||||||||||||||
Interest rate spread | 4.03 | % | 4.54 | % | |||||||||||||||||
Net interest margin | 4.17 | 4.67 | |||||||||||||||||||
Average interest earning assets to interest bearing liabilities | 124.76 | 115.54 |
The following table sets forth loan totals by category as of the dates presented: | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Commercial | $ | 270,608 | 14.3 | % | $ | 241,178 | 14.0 | % | ||||||
Real estate: | ||||||||||||||
Commercial real estate | 927,408 | 48.9 | 843,436 | 48.9 | ||||||||||
Commercial construction, land and land development | 153,734 | 8.1 | 130,320 | 7.5 | ||||||||||
Residential real estate (1) | 362,343 | 19.1 | 342,037 | 19.8 | ||||||||||
Single-family interim construction | 93,587 | 5.0 | 83,144 | 4.8 | ||||||||||
Agricultural | 41,642 | 2.2 | 40,558 | 2.3 | ||||||||||
Consumer | 45,906 | 2.4 | 45,762 | 2.7 | ||||||||||
Other | 45 | — | 108 | — | ||||||||||
Total loans | 1,895,273 | 100.0 | % | 1,726,543 | 100.0 | % | ||||||||
Allowance for losses | (14,841 | ) | (13,960 | ) | ||||||||||
Total loans, net | $ | 1,880,432 | $ | 1,712,583 | ||||||||||
(1) Includes loans held for sale at March 31, 2014 and December 31, 2013 of $2,191 and $3,383, respectively. |
For the Three Months Ended | ||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||||||
Net Interest Income - Reported | (a) | $ | 22,135 | $ | 19,953 | $ | 18,215 | |||
Income recognized on acquired loans | (363 | ) | (67 | ) | (1,068 | ) | ||||
Adjusted Net Interest Income | (b) | 21,772 | 19,886 | 17,147 | ||||||
Provision Expense - Reported | (c) | 1,253 | 883 | 1,030 | ||||||
Noninterest Income - Reported | (d) | 2,334 | 3,412 | 2,426 | ||||||
Gain on Sale of OREO | (39 | ) | (1,334 | ) | (25 | ) | ||||
Loss / (Gain) on Sale of PP&E | — | 22 | (1 | ) | ||||||
Adjusted Noninterest Income | (e) | 2,295 | 2,100 | 2,400 | ||||||
Noninterest Expense - Reported | (f) | 16,076 | 15,714 | 13,923 | ||||||
Adriatica Expenses | (23 | ) | (206 | ) | (197 | ) | ||||
OREO Impairment | — | (74 | ) | (448 | ) | |||||
IPO related stock grant and bonus expense | (162 | ) | (235 | ) | — | |||||
OREO back property tax | — | (93 | ) | |||||||
Acquisition Expense | (476 | ) | (1,354 | ) | (137 | ) | ||||
Adjusted Noninterest Expense | (g) | 15,415 | 13,845 | 13,048 | ||||||
Pre-Tax Pre-Provision Earnings | (a) + (d) - (f) | $ | 8,393 | $ | 7,651 | $ | 6,718 | |||
Core Pre-Tax Pre-Provision Earnings | (b) + (e) - (g) | $ | 8,652 | $ | 8,141 | $ | 6,499 | |||
Core Earnings (2) | (b) - (c) + (e) - (g) | $ | 4,972 | $ | 4,870 | $ | 3,675 | |||
Reported Efficiency Ratio | (f) / (a + d) | 65.70 | % | 67.25 | % | 67.45 | % | |||
Core Efficiency Ratio | (g) / (b + e) | 64.05 | % | 62.97 | % | 66.75 | % | |||
Adjusted Return on Average Assets (1) | 1.51 | % | 1.58 | % | 1.52 | % | ||||
Adjusted Return on Average Equity (1) | 14.24 | % | 14.48 | % | 21.14 | % | ||||
Total Average Assets | $ | 2,330,932 | $ | 2,042,955 | $ | 1,733,924 | ||||
Total Average Stockholders' Equity | $ | 246,407 | $ | 223,113 | $ | 124,731 | ||||
(1) Calculated using core pre-tax pre-provision earnings | ||||||||||
(2) Assumes actual effective tax rate of 32.8%, 32.9% and 32.8%, respectively. December 31, 2013 tax rate adjusted for effect of non-deductible acquisition expenses. |
Tangible Book Value Per Common Share | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Tangible Common Equity | |||||||
Total stockholders' equity | $ | 252,508 | $ | 233,772 | |||
Adjustments: | |||||||
Goodwill | (42,575 | ) | (34,704 | ) | |||
Core deposit intangibles | (3,813 | ) | (3,148 | ) | |||
Tangible common equity | $ | 206,120 | $ | 195,920 | |||
Common shares outstanding | 12,592,935 | 12,330,158 | |||||
Book value per common share | $ | 20.05 | $ | 18.96 | |||
Tangible book value per common share | 16.37 | 15.89 |
Tier 1 Capital to Risk-Weighted Assets Ratio | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Tier 1 Common Equity | |||||||
Total stockholders' equity - GAAP | $ | 252,508 | $ | 233,772 | |||
Adjustments: | |||||||
Unrealized (gain) loss on available-for-sale securities | (449 | ) | 1,130 | ||||
Goodwill | (42,575 | ) | (34,704 | ) | |||
Other intangibles | (3,813 | ) | (3,148 | ) | |||
Qualifying Restricted Core Capital Elements (TRUPS) | 17,600 | 17,600 | |||||
Tier 1 common equity | $ | 223,271 | $ | 214,650 | |||
Total Risk-Weighted Assets | |||||||
On balance sheet | $ | 1,796,153 | $ | 1,637,117 | |||
Off balance sheet | 71,148 | 60,397 | |||||
Total risk-weighted assets | $ | 1,867,301 | $ | 1,697,514 | |||
Total stockholders' equity to risk-weighted assets ratio | 13.52 | % | 13.77 | % | |||
Tier 1 common equity to risk-weighted assets ratio | 11.96 | 12.64 |