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 | Text of Press Release issued by Independent Bank Group, Inc., dated October 22, 2015 |
By: | /s/ David R. Brooks |
Name: | David R. Brooks |
Title: | Chairman of the Board and Chief Executive Officer |
Exhibit No. | Description of Exhibit |
Exhibit 99.1 | Text of Press Release issued by Independent Bank Group, Inc., dated October 22, 2015 |
• | Return to historically strong organic loan growth with loans increasing 18.1% on an annualized basis for the quarter and 13.7% year to date. |
• | Core earnings were $8.9 million, or $0.52 per diluted share, for the quarter ended September 30, 2015 compared to $9.5 million, or $0.58 per diluted share, for the quarter ended September 30, 2014 and to $10.5 million, or $0.61 per diluted share, for the quarter ended June 30, 2015. |
• | Prudent additional provision for loan loss further mitigating potential risk related to continued lower energy pricing. |
• | Asset quality remains strong, as reflected by a nonperforming assets to total assets ratio of 0.34% and a nonperforming loans to total loans ratio of 0.33% at September 30, 2015. Net charge offs were 0.07% annualized for the quarter. |
• | Prompt regulatory approval and integration progress on the Grand Bank transaction enabling an expected November 1, 2015 closing. |
• | Net interest income was $38.1 million for third quarter 2015 compared to $32.4 million for third quarter 2014 and $37.8 million for second quarter 2015. The increase in net interest income from the previous year was primarily due to increased average loan balances resulting from organic loan growth as well as loans acquired in the Houston City Bancshares acquisition in October 2014. The increase from the linked quarter is primarily due to higher average loan balances offset by a decrease in accretion income compared to the second quarter. |
• | The net interest margin was 4.08% for third quarter 2015 compared to 4.04% for third quarter 2014 and 4.10% for second quarter 2015. The increase from the prior year is due to a change in the earning asset mix as well as a small decrease in liability cost. The slight decrease from the linked quarter is primarily due to decreased accretion income from acquired loans (five basis points). |
• | The yield on interest-earning assets was 4.62% for the third quarter 2015 compared to 4.60% for third quarter 2014 and 4.64% for the second quarter 2015. The increase from the prior year is primarily as a result of a change in mix of assets from securities to loans. The decrease from the linked quarter is related primarily to the decrease in acquired loan accretion income. |
• | The cost of interest bearing liabilities, including borrowings, was 0.70% for third quarter 2015 compared to 0.73% for third quarter 2014 and 0.69% for second quarter 2015. The decrease from the prior year is due to lower rates on deposit accounts |
• | The average balance of total interest-earning assets grew by $518.9 million and totaled $3.706 billion compared to $3.187 billion at September 30, 2014 and grew by $11 million compared to $3.695 billion at June 30, 2015. This increase from third quarter 2014 is due to organic loan growth and the Houston City Bancshares transaction completed October 1, 2014. |
• | Total noninterest income decreased $411 thousand compared to third quarter 2014 and decreased $310 thousand compared to second quarter 2015. |
• | The decrease from the prior year reflects a $962 thousand decrease in gain on sales of loans and an increase of $352 in loss on sale of premises and equipment. Offsetting these decreases was a $624 thousand increase in deposit service charges and a $273 thousand increase in mortgage fee income. |
• | The decrease from second quarter 2015 relates to a $76 thousand decrease in mortgage fee income, a $135 thousand decrease in other noninterest income, an increase of $374 thousand in loss on sale of premises and equipment, and a decrease of $90 thousand in gain on sale of securities. These decreases were offset by an increase of $257 thousand in deposit service charges and a gain on sale of loans of $116 thousand. |
• | Total noninterest expense increased $3.7 million compared to third quarter 2014 and increased $1.4 million compared to second quarter 2015. |
• | The increase in noninterest expense compared to third quarter 2014 is due primarily to an increase of $2.4 million in salaries and benefits expense, an increase of $682 thousand in occupancy expense, an increase of $314 thousand in data processing expense, an increase of $115 thousand in FDIC assessment expense, an increase of $109 thousand in advertising and public relations expense and an increase of $396 thousand in other noninterest expense offset by a decrease of $336 thousand in acquisition expenses. These increases in the noninterest expenses relate primarily to the Houston City Bancshares acquisition completed in October 2014. |
• | The increase from the linked quarter is primarily related to increases of $268 thousand in salaries and benefits, $90 thousand in occupancy expenses, $120 thousand in data processing expenses, $164 thousand in legal and professional fees, $265 thousand in acquisition expenses and $332 thousand in other noninterest expense, including increased costs related to monitoring our energy portfolio. Compensation expense increases are due to accruals for incentive compensation related to strong loan growth and mortgage activity for the quarter. Acquisition expense increased due to the Grand Bank transaction. Legal fees were higher due to increased activity on existing litigation. In addition, certain occupancy and noninterest expenses were elevated in the third quarter due to timing of certain projects. |
• | Provision for loan loss expense was $3.9 million for the third quarter 2015, an increase of $3.0 million compared to $976 thousand for third quarter 2014 and an increase of $2.2 million compared to $1.7 million during second quarter 2015. This provision expense is directly related to organic loan growth in the respective period as well as an increase in the allocation for our energy portfolio, including an additional impairment of $1.2 million on one nonperforming energy loan that was identified in the first quarter 2015. |
• | The allowance for loan losses was $25.1 million, or 0.71% of total loans, at September 30, 2015, compared to $16.8 million, or 0.58% of total loans at September 30, 2014, and compared to $21.8 million, or 0.64% of total loans at June 30, 2015. The increase in the allowance is due to organic loan growth, specific allocations on impaired assets, and increased qualitative factors in the general allocation in recognition of decreases in commodity prices to serve as a significant additional energy-related allocation. As of September 30, 2015, the allowance allocated to energy was 3.4% of the energy loan portfolio balance. |
• | Federal income tax expense of $3.9 million was recorded for the quarter ended September 30, 2015, an effective rate of 32.4% compared to tax expense of $4.5 million and an effective rate of 33.6% for the quarter ended September 30, 2014 and tax expense of $5.2 million and an effective rate of 33.0% for the quarter ended June 30, 2015. |
• | Total loans held for investment were $3.529 billion at September 30, 2015 compared to $3.376 billion at June 30, 2015 and to $2.891 billion at September 30, 2014. This represented organic loan growth of $153.7 million, or a 4.6% increase from June 30, 2015 and an 22.1% increase from September 30, 2014 (approximately 15.3% of which was organic growth with the remainder coming from the Houston City Bancshares acquisition). |
• | The energy portfolio was $209.6 million (5.9% of total loans) at September 30, 2015 made up of 27 credits and 26 relationships. This represented a $17 million reduction from the previous quarter. As of September 30, 2015, there was one nonperforming classified energy credit with a balance of $4.2 million and two performing classified energy credits with balances totaling $28.5 million. Oil field service related loans, which were obtained through acquisitions, represented an additional $23.0 million (<1% of loans) at September 30, 2015. All energy related credits are being closely monitored and the Company is in close contact with energy borrowers to maintain a real time understanding of these borrowers’ financial condition and ability to positively respond to changing market conditions. |
• | Total nonperforming assets decreased to $15.1 million, or 0.34% of total assets at September 30, 2015 from $16.3 million, or 0.37% at June 30, 2015 and increased from $12.5 million, or 0.33% of total assets at September 30, 2014. |
• | Total nonperforming loans decreased to $11.7 million, or 0.33% of total loans at September 30, 2015 compared to $13.3 million, or 0.40% of total loans at June 30, 2015 and increased from $8.4 million, or 0.29% of total loans at September 30, 2014. |
• | The decrease in nonperforming assets from the linked quarter is due to the repossession of collateral on a nonaccrual loan and related chargedown of $485 thousand and disposition of $846 thousand in other real estate properties. The net increase in nonperforming assets from the prior year is primarily due to the recognition of a $4.2 million energy loan that was placed on nonaccrual in the first quarter of 2015 offset by decreases due to the chargedown discussed above and total dispositions of $2.3 million in other real estate properties during 2015. |
• | The decrease in nonperforming loans from the linked quarter is primarily related to the removal of a $1.4 million commercial loan which was removed from nonaccrual during the third quarter due to repossession of collateral. The increase in nonperforming loans from the prior year is primarily due to the recognition of the $4.2 million energy loan discussed above offset by the $1.4 million nonaccrual loan removed in the third quarter as discussed above. |
• | Total deposits were $3.534 billion at September 30, 2015 compared to $3.467 billion at June 30, 2015 and compared to $2.814 billion at September 30, 2014. |
• | The average cost of interest bearing deposits decreased to 0.48% for the third quarter 2015 compared to 0.49% for the third quarter 2014 and increased from 0.47% for the second quarter 2015. |
• | Total borrowings (other than junior subordinated debentures) were $334.5 million at September 30, 2015, an increase of $63.0 million from June 30, 2015 and a decrease of $67.9 million from September 30, 2014. These changes reflect changes in the balances of short term FHLB advances during the applicable period. |
• | The tangible common equity to tangible assets and the Tier 1 capital to average assets ratios were 7.15% and 8.67% (estimated), respectively, at September 30, 2015 compared to 7.11% and 8.40%, respectively, at June 30, 2015 and 7.32% and 8.50%, respectively, at September 30, 2014. The total stockholders’ equity to total assets ratio was 12.69%, 12.79% and 13.35% at September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Total capital to risk weighted assets was 11.86% at September 30, 2015 (estimated) compared to 12.05% at June 30, 2015 and 13.36% at September 30, 2014. The declines in capital ratios from prior periods is due to growth in assets during the quarter. |
• | Book value and tangible book value per common share were $31.81 and $17.72, respectively, at September 30, 2015 compared to $31.30 and $17.18, respectively, at June 30, 2015 and $29.10 and $15.78, respectively, at September 30, 2014. |
• | Return on tangible equity (on an annualized basis) was 10.75% for the third quarter 2015 compared to 14.32% and 14.48% for the third quarter 2014 and second quarter 2015, respectively. |
• | Return on average assets and return on average equity (on an annualized basis) were 0.76% and 5.96%, respectively, for third quarter 2015 compared to 0.95% and 7.60%, respectively, for third quarter 2014 and 0.99% and 7.91%, respectively, for second quarter 2015. |
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 |
Robb Temple Executive Vice President and Chief Administrative Officer (972) 562-9004 rtemple@ibtx.com |
As of and for the quarter ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Selected Income Statement Data | |||||||||||||||||||
Interest income | $ | 43,130 | $ | 42,747 | $ | 40,736 | $ | 42,952 | $ | 36,940 | |||||||||
Interest expense | 5,041 | 4,967 | 4,658 | 4,777 | 4,509 | ||||||||||||||
Net interest income | 38,089 | 37,780 | 36,078 | 38,175 | 32,431 | ||||||||||||||
Provision for loan losses | 3,932 | 1,659 | 1,670 | 1,751 | 976 | ||||||||||||||
Net interest income after provision for loan losses | 34,157 | 36,121 | 34,408 | 36,424 | 31,455 | ||||||||||||||
Noninterest income | 3,799 | 4,109 | 3,966 | 3,961 | 4,210 | ||||||||||||||
Noninterest expense | 25,830 | 24,455 | 24,386 | 24,931 | 22,162 | ||||||||||||||
Income tax expense | 3,924 | 5,204 | 4,536 | 5,356 | 4,543 | ||||||||||||||
Net income | 8,202 | 10,571 | 9,452 | 10,098 | 8,960 | ||||||||||||||
Preferred stock dividends | 60 | 60 | 60 | 60 | 60 | ||||||||||||||
Net income available to common shareholders | 8,142 | 10,511 | 9,392 | 10,038 | 8,900 | ||||||||||||||
Core net interest income (1) | 38,001 | 37,225 | 35,965 | 37,187 | 32,259 | ||||||||||||||
Core Pre-Tax Pre-Provision Earnings (1) | 17,123 | 17,379 | 16,810 | 18,003 | 15,266 | ||||||||||||||
Core Earnings (1) | 8,917 | 10,532 | 10,230 | 10,889 | 9,546 | ||||||||||||||
Per Share Data (Common Stock) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Basic | $ | 0.48 | $ | 0.61 | $ | 0.55 | $ | 0.59 | $ | 0.54 | |||||||||
Diluted | 0.47 | 0.61 | 0.55 | 0.59 | 0.54 | ||||||||||||||
Core earnings: | |||||||||||||||||||
Basic (1) | 0.52 | 0.62 | 0.60 | 0.64 | 0.58 | ||||||||||||||
Diluted (1) | 0.52 | 0.61 | 0.60 | 0.64 | 0.58 | ||||||||||||||
Dividends | 0.08 | 0.08 | 0.08 | 0.06 | 0.06 | ||||||||||||||
Book value | 31.81 | 31.30 | 30.77 | 30.35 | 29.10 | ||||||||||||||
Tangible book value (1) | 17.72 | 17.18 | 16.65 | 16.15 | 15.78 | ||||||||||||||
Common shares outstanding | 17,111,394 | 17,108,394 | 17,119,793 | 17,032,669 | 16,370,313 | ||||||||||||||
Weighted average basic shares outstanding (4) | 17,110,090 | 17,111,958 | 17,091,663 | 17,032,452 | 16,370,506 | ||||||||||||||
Weighted average diluted shares outstanding (4) | 17,199,281 | 17,198,981 | 17,169,596 | 17,123,423 | 16,469,231 | ||||||||||||||
Selected Period End Balance Sheet Data | |||||||||||||||||||
Total assets | $ | 4,478,339 | $ | 4,375,727 | $ | 4,258,364 | $ | 4,132,639 | $ | 3,746,682 | |||||||||
Cash and cash equivalents | 353,950 | 424,196 | 358,798 | 324,047 | 249,769 | ||||||||||||||
Securities available for sale | 200,188 | 180,465 | 198,149 | 206,062 | 235,844 | ||||||||||||||
Loans, held for sale | 6,218 | 7,237 | 7,034 | 4,453 | 1,811 | ||||||||||||||
Loans, held for investment | 3,529,275 | 3,375,553 | 3,303,248 | 3,201,084 | 2,890,924 | ||||||||||||||
Allowance for loan losses | 25,088 | 21,764 | 20,227 | 18,552 | 16,840 | ||||||||||||||
Goodwill and core deposit intangible | 241,171 | 241,534 | 241,722 | 241,912 | 218,025 | ||||||||||||||
Other real estate owned | 2,323 | 2,958 | 4,587 | 4,763 | 4,084 | ||||||||||||||
Noninterest-bearing deposits | 884,272 | 886,087 | 806,912 | 818,022 | 715,843 | ||||||||||||||
Interest-bearing deposits | 2,649,768 | 2,581,397 | 2,579,766 | 2,431,576 | 2,097,817 | ||||||||||||||
Borrowings (other than junior subordinated debentures) | 334,485 | 271,504 | 297,274 | 306,147 | 402,389 | ||||||||||||||
Junior subordinated debentures | 18,147 | 18,147 | 18,147 | 18,147 | 18,147 | ||||||||||||||
Series A Preferred Stock | 23,938 | 23,938 | 23,938 | 23,938 | 23,938 | ||||||||||||||
Total stockholders' equity | 568,257 | 559,447 | 550,728 | 540,851 | 500,311 |
As of and for the quarter ended | ||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||
Selected Performance Metrics | ||||||||||||||
Return on average assets | 0.76 | % | 0.99 | % | 0.92 | % | 0.97 | % | 0.95 | % | ||||
Return on average equity (2) | 5.96 | 7.91 | 7.31 | 7.65 | 7.60 | |||||||||
Return on tangible equity (2) (6) | 10.75 | 14.48 | 13.64 | 14.08 | 14.32 | |||||||||
Adjusted return on average assets (1) | 0.83 | 0.99 | 1.00 | 1.05 | 1.02 | |||||||||
Adjusted return on average equity (1) (2) | 6.53 | 7.93 | 7.96 | 8.30 | 8.15 | |||||||||
Adjusted return on tangible equity (1) (2) (6) | 11.77 | 14.51 | 14.86 | 15.27 | 15.36 | |||||||||
Net interest margin | 4.08 | 4.10 | 4.07 | 4.28 | 4.04 | |||||||||
Adjusted net interest margin (3) | 4.07 | 4.04 | 4.05 | 4.17 | 4.02 | |||||||||
Efficiency ratio | 61.66 | 58.38 | 60.90 | 59.17 | 60.48 | |||||||||
Core efficiency ratio (1) | 59.25 | 57.81 | 57.76 | 55.85 | 56.87 | |||||||||
Credit Quality Ratios | ||||||||||||||
Nonperforming assets to total assets | 0.34 | % | 0.37 | % | 0.43 | % | 0.36 | % | 0.33 | % | ||||
Nonperforming loans to total loans | 0.33 | 0.40 | 0.41 | 0.32 | 0.29 | |||||||||
Nonperforming assets to total loans and other real estate | 0.43 | 0.48 | 0.55 | 0.46 | 0.43 | |||||||||
Allowance for loan losses to non-performing loans | 214.21 | 163.12 | 148.06 | 183.43 | 200.83 | |||||||||
Allowance for loan losses to total loans | 0.71 | 0.64 | 0.61 | 0.58 | 0.58 | |||||||||
Net charge-offs to average loans outstanding (annualized) | 0.07 | 0.01 | — | 0.01 | 0.05 | |||||||||
Capital Ratios | ||||||||||||||
Estimated common equity tier 1 capital to risk-weighted assets (5) | 8.26 | % | 8.33 | % | 8.62 | % | n/a | n/a | ||||||
Estimated tier 1 capital to average assets | 8.67 | 8.40 | 7.78 | 8.15 | 8.50 | |||||||||
Estimated tier 1 capital to risk-weighted assets (1) (5) | 9.37 | 9.49 | 9.31 | 9.83 | 10.34 | |||||||||
Estimated total capital to risk-weighted assets (5) | 11.86 | 12.05 | 11.88 | 12.59 | 13.36 | |||||||||
Total stockholders' equity to total assets | 12.69 | 12.79 | 12.93 | 13.09 | 13.35 | |||||||||
Tangible common equity to tangible assets (1) | 7.15 | 7.11 | 7.10 | 7.07 | 7.32 | |||||||||
(1) Non-GAAP financial measures. See reconciliation. | ||||||||||||||
(2) Excludes average balance of Series A preferred stock. | ||||||||||||||
(3) Excludes income recognized on acquired loans of $88, $555, $113, $988 and $172, respectively. | ||||||||||||||
(4) Total number of shares includes participating shares (those with dividend rights). | ||||||||||||||
(5) September 30, 2015, June 30, 2015 and March 31, 2015 ratios calculated under Basel III rules, which became effective January 1, 2015. | ||||||||||||||
(6) Excludes average balance of goodwill and net core deposit intangibles. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 42,145 | $ | 35,633 | $ | 123,350 | $ | 93,637 | ||||||||
Interest on taxable securities | 393 | 711 | 1,553 | 2,187 | ||||||||||||
Interest on nontaxable securities | 461 | 404 | 1,324 | 1,028 | ||||||||||||
Interest on federal funds sold and other | 131 | 192 | 386 | 328 | ||||||||||||
Total interest income | 43,130 | 36,940 | 126,613 | 97,180 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 3,067 | 2,530 | 8,794 | 6,874 | ||||||||||||
Interest on FHLB advances | 773 | 975 | 2,243 | 2,792 | ||||||||||||
Interest on repurchase agreements and other borrowings | 1,064 | 871 | 3,229 | 1,142 | ||||||||||||
Interest on junior subordinated debentures | 137 | 133 | 400 | 402 | ||||||||||||
Total interest expense | 5,041 | 4,509 | 14,666 | 11,210 | ||||||||||||
Net interest income | 38,089 | 32,431 | 111,947 | 85,970 | ||||||||||||
Provision for loan losses | 3,932 | 976 | 7,261 | 3,608 | ||||||||||||
Net interest income after provision for loan losses | 34,157 | 31,455 | 104,686 | 82,362 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 2,165 | 1,541 | 5,878 | 4,205 | ||||||||||||
Mortgage fee income | 1,353 | 1,080 | 4,082 | 2,777 | ||||||||||||
Gain on sale of loans | 116 | 1,078 | 116 | 1,078 | ||||||||||||
Gain on sale of other real estate | 41 | 20 | 220 | 59 | ||||||||||||
Gain on sale of securities available for sale | — | — | 90 | — | ||||||||||||
Loss on sale of premises and equipment | (374 | ) | (22 | ) | (374 | ) | (22 | ) | ||||||||
Increase in cash surrender value of BOLI | 268 | 281 | 806 | 690 | ||||||||||||
Other | 230 | 232 | 1,056 | 876 | ||||||||||||
Total noninterest income | 3,799 | 4,210 | 11,874 | 9,663 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,918 | 12,551 | 43,992 | 37,797 | ||||||||||||
Occupancy | 4,117 | 3,435 | 12,054 | 9,200 | ||||||||||||
Data processing | 786 | 472 | 2,140 | 1,420 | ||||||||||||
FDIC assessment | 541 | 426 | 1,553 | 1,246 | ||||||||||||
Advertising and public relations | 313 | 204 | 912 | 618 | ||||||||||||
Communications | 550 | 498 | 1,643 | 1,220 | ||||||||||||
Net other real estate owned expenses (including taxes) | 88 | 122 | 184 | 258 | ||||||||||||
Operations of IBG Adriatica, net | — | — | — | 23 | ||||||||||||
Other real estate impairment | 10 | 22 | 35 | 22 | ||||||||||||
Core deposit intangible amortization | 363 | 361 | 1,102 | 859 | ||||||||||||
Professional fees | 841 | 828 | 2,008 | 1,792 | ||||||||||||
Acquisition expense, including legal | 293 | 629 | 793 | 2,628 | ||||||||||||
Other | 3,010 | 2,614 | 8,255 | 6,498 | ||||||||||||
Total noninterest expense | 25,830 | 22,162 | 74,671 | 63,581 | ||||||||||||
Income before taxes | 12,126 | 13,503 | 41,889 | 28,444 | ||||||||||||
Income tax expense | 3,924 | 4,543 | 13,664 | 9,564 | ||||||||||||
Net income | $ | 8,202 | $ | 8,960 | $ | 28,225 | $ | 18,880 |
September 30, | December 31, | ||||||
Assets | 2015 | 2014 | |||||
Cash and due from banks | $ | 126,991 | $ | 153,158 | |||
Interest-bearing deposits in other banks | 226,959 | 170,889 | |||||
Cash and cash equivalents | 353,950 | 324,047 | |||||
Securities available for sale | 200,188 | 206,062 | |||||
Loans held for sale | 6,218 | 4,453 | |||||
Loans, net of allowance for loan losses | 3,503,081 | 3,182,045 | |||||
Premises and equipment, net | 91,154 | 88,902 | |||||
Other real estate owned | 2,323 | 4,763 | |||||
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 13,187 | 12,321 | |||||
Bank-owned life insurance (BOLI) | 40,590 | 39,784 | |||||
Deferred tax asset | 5,863 | 2,235 | |||||
Goodwill | 229,818 | 229,457 | |||||
Core deposit intangible, net | 11,353 | 12,455 | |||||
Other assets | 20,614 | 26,115 | |||||
Total assets | $ | 4,478,339 | $ | 4,132,639 | |||
Liabilities and Stockholders’ Equity | |||||||
Deposits: | |||||||
Noninterest-bearing | 884,272 | 818,022 | |||||
Interest-bearing | 2,649,768 | 2,431,576 | |||||
Total deposits | 3,534,040 | 3,249,598 | |||||
FHLB advances | 263,346 | 229,405 | |||||
Repurchase agreements | — | 4,012 | |||||
Other borrowings | 68,548 | 69,410 | |||||
Other borrowings, related parties | 2,591 | 3,320 | |||||
Junior subordinated debentures | 18,147 | 18,147 | |||||
Other liabilities | 23,410 | 17,896 | |||||
Total liabilities | 3,910,082 | 3,591,788 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Series A Preferred Stock | 23,938 | 23,938 | |||||
Common stock | 171 | 170 | |||||
Additional paid-in capital | 479,615 | 476,609 | |||||
Retained earnings | 61,670 | 37,731 | |||||
Accumulated other comprehensive income | 2,863 | 2,403 | |||||
Total stockholders’ equity | 568,257 | 540,851 | |||||
Total liabilities and stockholders’ equity | $ | 4,478,339 | $ | 4,132,639 |
For The Three Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 3,411,536 | $ | 42,145 | 4.90 | % | $ | 2,878,566 | $ | 35,633 | 4.91 | % | |||||||||
Taxable securities | 119,997 | 393 | 1.30 | 170,804 | 711 | 1.65 | |||||||||||||||
Nontaxable securities | 65,440 | 461 | 2.79 | 69,784 | 404 | 2.30 | |||||||||||||||
Federal funds sold and other | 109,031 | 131 | 0.48 | 67,908 | 192 | 1.12 | |||||||||||||||
Total interest-earning assets | 3,706,004 | $ | 43,130 | 4.62 | 3,187,062 | $ | 36,940 | 4.60 | |||||||||||||
Noninterest-earning assets | 564,600 | 534,261 | |||||||||||||||||||
Total assets | $ | 4,270,604 | $ | 3,721,323 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Checking accounts | $ | 1,279,575 | $ | 1,416 | 0.44 | % | $ | 1,126,424 | $ | 1,288 | 0.45 | % | |||||||||
Savings accounts | 143,914 | 66 | 0.18 | 125,027 | 92 | 0.29 | |||||||||||||||
Money market accounts | 289,895 | 211 | 0.29 | 111,675 | 94 | 0.33 | |||||||||||||||
Certificates of deposit | 841,009 | 1,374 | 0.65 | 696,272 | 1,056 | 0.60 | |||||||||||||||
Total deposits | 2,554,393 | 3,067 | 0.48 | 2,059,398 | 2,530 | 0.49 | |||||||||||||||
FHLB advances | 212,267 | 773 | 1.44 | 303,458 | 975 | 1.27 | |||||||||||||||
Repurchase agreements and other borrowings | 76,313 | 1,064 | 5.53 | 56,413 | 871 | 6.13 | |||||||||||||||
Junior subordinated debentures | 18,147 | 137 | 3.00 | 18,147 | 133 | 2.91 | |||||||||||||||
Total interest-bearing liabilities | 2,861,120 | 5,041 | 0.70 | 2,437,416 | 4,509 | 0.73 | |||||||||||||||
Noninterest-bearing checking accounts | 836,212 | 785,054 | |||||||||||||||||||
Noninterest-bearing liabilities | 7,395 | 10,647 | |||||||||||||||||||
Stockholders’ equity | 565,877 | 488,206 | |||||||||||||||||||
Total liabilities and equity | $ | 4,270,604 | $ | 3,721,323 | |||||||||||||||||
Net interest income | $ | 38,089 | $ | 32,431 | |||||||||||||||||
Interest rate spread | 3.92 | % | 3.87 | % | |||||||||||||||||
Net interest margin | 4.08 | 4.04 | |||||||||||||||||||
Average interest earning assets to interest bearing liabilities | 129.53 | 130.76 |
For The Nine Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 3,336,034 | $ | 123,350 | 4.94 | % | $ | 2,454,773 | $ | 93,637 | 5.10 | % | |||||||||
Taxable securities | 127,250 | 1,553 | 1.63 | 177,144 | 2,187 | 1.65 | |||||||||||||||
Nontaxable securities | 67,603 | 1,324 | 2.62 | 54,414 | 1,028 | 2.53 | |||||||||||||||
Federal funds sold and other | 136,420 | 386 | 0.38 | 77,940 | 328 | 0.56 | |||||||||||||||
Total interest-earning assets | 3,667,307 | $ | 126,613 | 4.62 | 2,764,271 | $ | 97,180 | 4.70 | |||||||||||||
Noninterest-earning assets | 554,655 | 323,291 | |||||||||||||||||||
Total assets | $ | 4,221,962 | $ | 3,087,562 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Checking accounts | $ | 1,287,810 | $ | 4,206 | 0.44 | % | $ | 1,012,012 | $ | 3,522 | 0.47 | % | |||||||||
Savings accounts | 143,539 | 198 | 0.18 | 123,862 | 273 | 0.29 | |||||||||||||||
Money market accounts | 260,768 | 490 | 0.25 | 101,243 | 232 | 0.31 | |||||||||||||||
Certificates of deposit | 839,155 | 3,900 | 0.62 | 626,008 | 2,847 | 0.61 | |||||||||||||||
Total deposits | 2,531,272 | 8,794 | 0.46 | 1,863,125 | 6,874 | 0.49 | |||||||||||||||
FHLB advances | 212,005 | 2,243 | 1.41 | 243,232 | 2,792 | 1.53 | |||||||||||||||
Repurchase agreements and other borrowings | 76,605 | 3,229 | 5.64 | 26,946 | 1,142 | 5.67 | |||||||||||||||
Junior subordinated debentures | 18,147 | 400 | 2.95 | 18,147 | 402 | 2.96 | |||||||||||||||
Total interest-bearing liabilities | 2,838,029 | 14,666 | 0.69 | 2,151,450 | 11,210 | 0.70 | |||||||||||||||
Noninterest-bearing checking accounts | 819,649 | 528,481 | |||||||||||||||||||
Noninterest-bearing liabilities | 7,722 | 8,968 | |||||||||||||||||||
Stockholders’ equity | 556,562 | 398,663 | |||||||||||||||||||
Total liabilities and equity | $ | 4,221,962 | $ | 3,087,562 | |||||||||||||||||
Net interest income | $ | 111,947 | $ | 85,970 | |||||||||||||||||
Interest rate spread | 3.93 | % | 4.00 | % | |||||||||||||||||
Net interest margin | 4.08 | 4.16 | |||||||||||||||||||
Average interest earning assets to interest bearing liabilities | 129.22 | 128.48 |
The following table sets forth loan totals by category as of the dates presented: | ||||||||||||||
September 30, 2015 | December 31, 2014 | |||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Commercial | $ | 668,001 | 18.9 | % | $ | 672,052 | 21.0 | % | ||||||
Real estate: | ||||||||||||||
Commercial real estate | 1,777,401 | 50.3 | 1,450,434 | 45.2 | ||||||||||
Commercial construction, land and land development | 324,007 | 9.2 | 334,964 | 10.5 | ||||||||||
Residential real estate (1) | 555,951 | 15.7 | 518,478 | 16.2 | ||||||||||
Single-family interim construction | 140,144 | 4.0 | 138,278 | 4.3 | ||||||||||
Agricultural | 37,207 | 1.0 | 38,822 | 1.2 | ||||||||||
Consumer | 32,621 | 0.9 | 52,267 | 1.6 | ||||||||||
Other | 161 | — | 242 | — | ||||||||||
Total loans | 3,535,493 | 100.0 | % | 3,205,537 | 100.0 | % | ||||||||
Deferred loan fees | (1,106 | ) | (487 | ) | ||||||||||
Allowance for losses | (25,088 | ) | (18,552 | ) | ||||||||||
Total loans, net | $ | 3,509,299 | $ | 3,186,498 | ||||||||||
(1) Includes loans held for sale at September 30, 2015 and December 31, 2014 of $6,218 and $4,453, respectively. |
For the Three Months Ended | ||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||||
Net Interest Income - Reported | (a) | $ | 38,089 | $ | 37,780 | $ | 36,078 | $ | 38,175 | $ | 32,431 | |||||
Income recognized on acquired loans | (88 | ) | (555 | ) | (113 | ) | (988 | ) | (172 | ) | ||||||
Adjusted Net Interest Income | (b) | 38,001 | 37,225 | 35,965 | 37,187 | 32,259 | ||||||||||
Provision Expense - Reported | (c) | 3,932 | 1,659 | 1,670 | 1,751 | 976 | ||||||||||
Noninterest Income - Reported | (d) | 3,799 | 4,109 | 3,966 | 3,961 | 4,210 | ||||||||||
Gain on sale of loans | (116 | ) | — | — | — | (1,078 | ) | |||||||||
Gain on sale of OREO | (41 | ) | (49 | ) | (130 | ) | (12 | ) | (20 | ) | ||||||
Gain on sale of securities | — | (90 | ) | — | (362 | ) | — | |||||||||
Loss on sale of premises and equipment | 374 | — | — | — | 22 | |||||||||||
Adjusted Noninterest Income | (e) | 4,016 | 3,970 | 3,836 | 3,587 | 3,134 | ||||||||||
Noninterest Expense - Reported | (f) | 25,830 | 24,455 | 24,386 | 24,931 | 22,162 | ||||||||||
OREO Impairment | (10 | ) | (25 | ) | — | — | (22 | ) | ||||||||
IPO related stock grant and bonus expense | (156 | ) | (156 | ) | (156 | ) | (156 | ) | (156 | ) | ||||||
Registration statements | — | — | — | (163 | ) | (456 | ) | |||||||||
Acquisition Expense (5) | (770 | ) | (458 | ) | (1,239 | ) | (1,841 | ) | (1,401 | ) | ||||||
Adjusted Noninterest Expense | (g) | 24,894 | 23,816 | 22,991 | 22,771 | 20,127 | ||||||||||
Pre-Tax Pre-Provision Earnings | (a) + (d) - (f) | $ | 16,058 | $ | 17,434 | $ | 15,658 | $ | 17,205 | $ | 14,479 | |||||
Core Pre-Tax Pre-Provision Earnings | (b) + (e) - (g) | $ | 17,123 | $ | 17,379 | $ | 16,810 | $ | 18,003 | $ | 15,266 | |||||
Core Earnings (2) | (b) - (c) + (e) - (g) | $ | 8,917 | $ | 10,532 | $ | 10,230 | $ | 10,889 | $ | 9,546 | |||||
Reported Efficiency Ratio | (f) / (a + d) | 61.66 | % | 58.38 | % | 60.90 | % | 59.17 | % | 60.48 | % | |||||
Core Efficiency Ratio | (g) / (b + e) | 59.25 | % | 57.81 | % | 57.76 | % | 55.85 | % | 56.87 | % | |||||
Adjusted Return on Average Assets (1) | 0.83 | % | 0.99 | % | 1.00 | % | 1.05 | % | 1.02 | % | ||||||
Adjusted Return on Average Equity (1) | 6.53 | % | 7.93 | % | 7.96 | % | 8.30 | % | 8.15 | % | ||||||
Adjusted Return on Tangible Equity (1) | 11.77 | % | 14.51 | % | 14.86 | % | 15.27 | % | 15.36 | % | ||||||
Total Average Assets | $ | 4,270,604 | $ | 4,259,334 | $ | 4,154,007 | $ | 4,098,671 | $ | 3,721,323 | ||||||
Total Average Stockholders' Equity (3) | $ | 541,939 | $ | 532,715 | $ | 520,899 | $ | 520,800 | $ | 464,528 | ||||||
Total Average Tangible Stockholders' Equity (3) (4) | $ | 300,578 | $ | 291,166 | $ | 279,149 | $ | 282,907 | $ | 246,500 | ||||||
(1) Calculated using core earnings | ||||||||||||||||
(2) Assumes actual effective tax rate of 32.4%, 33.0%, 32.4%, 33.0% and 33.2%, respectively. December 31, 2014, and September 30, 2014 tax rate adjusted for effect of non-deductible acquisition expenses. | ||||||||||||||||
(3) Excludes average balance of Series A preferred stock. | ||||||||||||||||
(4) Excludes average balance of goodwill and net core deposit intangibles. | ||||||||||||||||
(5) Acquisition expenses include $477 thousand, $430 thousand, $767 thousand, $843 thousand and $772 thousand of compensation and bonus expenses in addition to $293 thousand, $28 thousand, $472 thousand, $998 thousand and $629 thousand of merger-related expenses for the quarters ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively. | ||||||||||||||||
Tangible Book Value Per Common Share | |||||||
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Tangible Common Equity | |||||||
Total common stockholders' equity | $ | 544,319 | $ | 516,913 | |||
Adjustments: | |||||||
Goodwill | (229,818 | ) | (229,457 | ) | |||
Core deposit intangibles, net | (11,353 | ) | (12,455 | ) | |||
Tangible common equity | $ | 303,148 | $ | 275,001 | |||
Tangible assets | $ | 4,237,168 | $ | 3,890,727 | |||
Common shares outstanding | 17,111,394 | 17,032,669 | |||||
Tangible common equity to tangible assets | 7.15 | % | 7.07 | % | |||
Book value per common share | $ | 31.81 | $ | 30.35 | |||
Tangible book value per common share | 17.72 | 16.15 |
Tier 1 Common and Tier 1 Capital to Risk-Weighted Assets Ratio | |||||||
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Tier 1 Common Equity | |||||||
Total common stockholders' equity - GAAP | $ | 544,319 | $ | 516,913 | |||
Adjustments: | |||||||
Unrealized gain on available-for-sale securities | (2,863 | ) | (2,403 | ) | |||
Goodwill | (229,818 | ) | (229,457 | ) | |||
Core deposit intangibles, net | (2,952 | ) | (12,455 | ) | |||
Tier 1 common equity | $ | 308,686 | $ | 272,598 | |||
Qualifying Restricted Core Capital Elements (junior subordinated debentures) | 17,600 | 17,600 | |||||
Preferred Stock | 23,938 | 23,938 | |||||
Tier 1 Equity | $ | 350,224 | $ | 314,136 | |||
Total Risk-Weighted Assets | $ | 3,738,305 | $ | 3,195,413 | |||
Estimated total common stockholders' equity to risk-weighted assets ratio | 14.56 | % | 16.18 | % | |||
Estimated tier 1 equity to risk-weighted assets ratio | 9.37 | 9.83 | |||||
Estimated tier 1 common equity to risk-weighted assets ratio | 8.26 | 9.08 |