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 | |
Exhibit 99.2 |
By: | /s/ David R. Brooks |
Name: | David R. Brooks |
Title: | Chairman of the Board, Chief Executive Officer and President |
![]() | Exhibit 99.1 Press Release For Immediate Release |
• | Completed the Guaranty Bancorp acquisition as scheduled on January 1, 2019, on the terms and with the exchange ratio originally announced |
• | Focused efforts on integration of the Guaranty acquisition, emphasizing execution of cost saves coupled with a balanced investment in infrastructure and leveraging of Guaranty's personnel and systems |
• | Managed total assets to be less than $10 billion at December 31, 2018, delaying the impact of the Durbin amendment limitation on interchange fees until July 2020 |
• | Solid earnings of $34.0 million, or $1.11 per diluted share and adjusted (non-GAAP) net income of $34.1 million, or $1.12 per diluted share |
• | Organic loan growth of 12% for 2018 |
• | Continued strong asset quality with all credit metrics remaining at historically low levels |
• | Established a $75 million Share Repurchase Program and announced plans to increase the quarterly dividend to $0.25 per share in the first quarter 2019 |
• | Net interest income was $87.1 million for fourth quarter 2018 compared to $75.3 million for fourth quarter 2017 and $86.3 million for third quarter 2018. The increase in net interest income from the previous year was primarily due to increased average earning assets resulting from organic growth and the acquisition of Integrity Bancshares, as well as overall higher interest rates due to a rising rate environment. The increase from the linked quarter is primarily a result of organic loan growth. During the fourth quarter 2018, liquid assets were redeployed to loans and total growth was limited as part of plan to maintain assets below $10 billion. |
• | The average balance of total interest-earning assets grew by $1.2 billion and totaled $8.7 billion at December 31, 2018 compared to $7.5 billion at December 31, 2017 and was unchanged compared to September 30, 2018. The increase from the prior year was due primarily to organic growth as well as $718.9 million in earning assets acquired in the Integrity transaction. |
• | The yield on interest-earning assets was 5.15% for fourth quarter 2018 compared to 4.61% for fourth quarter 2017 and 4.99% for third quarter 2018. The increase from the prior year and linked quarter was due primarily to higher rates on interest-earning assets due to continued increases in the Fed Funds rate during these periods. In addition, the increase was due to a shift in the earning asset mix from interest-bearing deposits to higher yielding loans and taxable securities. |
• | The cost of interest-bearing liabilities, including borrowings, was 1.64% for fourth quarter 2018 compared to 0.89% for fourth quarter 2017 and 1.47% for third quarter 2018. The increases from the prior year and linked quarter were primarily due to higher rates offered on our deposits, primarily commercial money market accounts and certificates of deposit, resulting both from market competition and general increases in interest rates on deposit products tied to Fed Funds rates. In addition, rate increases on short-term FHLB advances and junior subordinated debt impacted interest expense. |
• | The net interest margin was 3.98% for fourth quarter 2018 compared to 3.97% for fourth quarter 2017 and 3.94% for third quarter 2018. The adjusted (non-GAAP) net interest margin, which excludes purchased loan accretion, was 3.93% for fourth quarter 2018 compared to 3.84% for fourth quarter 2017 and 3.89% for third quarter 2018. The increase in the net interest margin from the prior year and linked quarter was primarily due to the multiple increases in the Fed Funds target rate as well as earning assets shifting from cash to loans. |
• | Total noninterest income decreased $3.7 million compared to fourth quarter 2017 and decreased $2.9 million compared to third quarter 2018. |
• | The decrease from the prior year primarily reflects decreases of $3.0 million in gain on sale of nine Colorado branches and $1.0 million in gain on sale of repossessed assets, offset by an increase of $445 thousand in other noninterest income, primarily an increase in correspondent bank earnings credit of $359 thousand. |
• | The decrease from the linked quarter primarily reflects decreases of $1.7 million in mortgage banking revenue and $792 thousand in other noninterest income primarily resulting from decreases in merchant income of $184 thousand, swap dealer income of $125 thousand and acquired loan recoveries of $121 thousand. The bank recorded $1.6 million of income related to the mortgage hedging strategy in third quarter 2018 compared to $394 thousand in fourth quarter 2018. |
• | Total noninterest expense increased $2.3 million compared to fourth quarter 2017 and decreased $807 thousand compared to third quarter 2018. |
• | The increase in expense compared to fourth quarter 2017 is due primarily to increases of $3.5 million in salaries and benefits, $811 thousand in occupancy expenses, $745 thousand in data processing, and $1.7 million in other noninterest expense, offset by a decrease of $4.2 million in acquisition expenses. The overall increase in salaries and benefits, occupancy and data processing from the prior year is reflective of additional headcount, branch locations and accounts acquired in the Integrity acquisition as well as organic growth during the year. The increase in other noninterest expense is primarily due to higher deposit- and loan-related expenses for the year over year period. Fourth quarter 2017 acquisition expenses were elevated due to professional fees and contract termination fees, conversion expenses and branch restructuring expenses incurred relating to the 2017 Carlile acquisition. |
• | The decrease from the linked quarter is primarily related to decreases of $1.2 million in acquisition expenses and $489 thousand in salaries and benefits, offset by an increase of $824 thousand in other noninterest expense. Acquisition expense was elevated in the linked quarter primarily due to professional fees and conversion-related expenses related to the Integrity transaction and professional fees related to the pending Guaranty transaction. Salaries and benefits expense was elevated in the linked quarter due to retention and conversion bonuses paid related to the Integrity acquisition. The increase in other noninterest expense is primarily due to increased FDIC insurance premiums of $333 thousand and higher deposit- and loan-related expenses. |
• | Provision for loan loss was $2.9 million for fourth quarter 2018, an increase of $1.0 million compared to $1.9 million for fourth quarter 2017 and an increase of $1.4 million compared to $1.5 million for third quarter 2018. Provision expense is primarily reflective of organic loan growth as well as charge-offs or specific reserves taken during the respective period. |
• | The allowance for loan losses was $44.8 million, or 0.58% of total loans at December 31, 2018, compared to $39.4 million, or 0.62% of total loans at December 31, 2017, and compared to $42.2 million, or 0.56% of total loans, at September 30, 2018. The dollar increases from prior periods are primarily due to additional general reserves for organic loan growth. In addition, the decrease in the allowance for loan losses as a percentage of loans from prior year reflects that loans acquired in the Integrity transaction were recorded at fair value without an allowance at acquisition date. |
• | Federal income tax expense of $8.3 million was recorded for the quarter ended December 31, 2018, an effective rate of 19.6% compared to tax expense of $18.2 million and an effective rate of 48.7% for the quarter ended December 31, 2017 and tax expense of $9.1 million and an effective rate of 20.4% for the quarter ended September 30, 2018. The lower tax rate in third and fourth quarter 2018 is primarily due to the reduction of the corporate U.S. statutory federal income tax rate from 35% to 21% as a result of the TCJA. The higher tax rate in fourth quarter 2017 was primarily due to a $5.5 million charge to remeasure deferred taxes as a result of the enactment of the TCJA. |
• | Total loans held for investment, net of mortgage warehouse purchase loans, were $7.7 billion at December 31, 2018 compared to $7.6 billion at September 30, 2018 and $6.3 billion at December 31, 2017. Loans held for investment increased $163.4 million, or 2.2% for the quarter. Loans held for investment increased $1.4 billion from December 31, 2017, or 22.3%, $651.8 million of which was acquired in the Integrity acquisition and $756.2 million of which was organic growth, or 12.0% for the year. Organic loan growth for the fourth quarter was 8.6% on an annualized basis. |
• | Average mortgage warehouse purchase loans were $120.9 million for the quarter ended December 31, 2018 compared to $136.1 million for the quarter ended September 30, 2018, representing a decrease of $15.2 million, or 11.1% for the quarter, and compared to $159.2 million for the quarter ended December 31, 2017, a decrease of $38.3 million, or 24.1% year over year. The change from the linked quarter and prior year quarter is reflective of decreased mortgage loan market activity during the respective periods. |
• | Commercial real estate (CRE) loans were $4.1 billion at December 31, 2018 compared to $4.0 billion at September 30, 2018 and $3.4 billion at December 31, 2017, or 52.3%, 51.7% and 51.7% of total loans, respectively. |
• | Total nonperforming assets increased to $16.9 million, or 0.17% of total assets at December 31, 2018, from $15.4 million, or 0.16% of total assets at September 30, 2018, and decreased from $22.7 million, or 0.26% of total assets at December 31, 2017. |
• | Total nonperforming loans increased to $12.6 million, or 0.16% of total loans at December 31, 2018, from $10.7 million, or 0.14% of total loans at September 30, 2018, and decreased from $15.4 million, or 0.24% of total loans at December 31, 2017. |
• | The net increase in nonperforming assets and nonperforming loans from the linked quarter is primarily due to the addition of two single-family interim construction loans totaling $3.6 million placed on nonaccrual status, offset by four nonaccrual loan payoffs totaling $1.4 million, as well as the disposition of $410 thousand of other real estate owned during the quarter. |
• | The decrease in nonperforming assets and nonperforming loans from the prior year is primarily due to a net decrease in nonaccrual loans of $2.2 million, and a $554 thousand troubled debt restructured loan payoff, as well as other real estate owned dispositions totaling $2.9 million for the year over year period. |
• | Charge-offs were 0.01% annualized in the fourth quarter 2018 compared to 0.14% annualized in the linked quarter and 0.02% annualized in the prior year quarter. Charge-offs were elevated in the linked quarter primarily due to a $2.5 million partial charge-off of an energy loan. |
• | Total deposits were $7.7 billion at December 31, 2018 compared to $7.8 billion at September 30, 2018 and compared to $6.6 billion at December 31, 2017. The increase in deposits from the prior year is primarily due to organic growth as well as $593 million in deposits acquired in the Integrity transaction. The decrease in deposits from the linked quarter is related to the strategy to maintain total assets below $10 billion at December 31, 2018. |
• | Total borrowings (other than junior subordinated debentures) were $427.3 million at December 31, 2018, a decrease of $54.9 million from September 30, 2018 and a decrease of $240.3 million from December 31, 2017. The change in the linked quarter and prior year reflects the use of short-term FHLB advances as needed for liquidity and balance sheet management. |
• | Book value and tangible book value per common share (non-GAAP) increased to $52.50 and $27.44, respectively, at December 31, 2018 compared to $51.42 and $26.21, respectively, at September 30, 2018 and compared to $47.28 and $23.76, respectively, at December 31, 2017. The increase from prior year is due to the retention of earnings and the additional capital from the Integrity acquisition in second quarter 2018. The increase from the linked quarter is due to the retention of earnings. |
• | Independent Bank Group is well capitalized under regulatory guidelines. At December 31, 2018, our estimated common equity Tier 1 to risk-weighted assets, Tier 1 capital to average assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted asset ratios were 10.05%, 9.57%, 10.41% and 12.58%, respectively, compared to 9.83%, 9.20%, 10.20%, and 12.38%, respectively, at September 30, 2018. |
Michelle Hickox Executive Vice President and Chief Financial Officer (972) 562-9004 mhickox@ibtx.com | Mark Haynie Executive Vice President and General Counsel (972) 562-9004 mhaynie@ibtx.com |
Peggy Smolen Senior Vice President, Marketing & Communications Director (972) 562-9004 psmolen@ibtx.com |
As of and for the quarter ended | |||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Selected Income Statement Data | |||||||||||||||||||
Interest income | $ | 112,805 | $ | 109,289 | $ | 97,082 | $ | 88,114 | $ | 87,420 | |||||||||
Interest expense | 25,697 | 23,021 | 18,173 | 14,147 | 12,166 | ||||||||||||||
Net interest income | 87,108 | 86,268 | 78,909 | 73,967 | 75,254 | ||||||||||||||
Provision for loan losses | 2,910 | 1,525 | 2,730 | 2,695 | 1,897 | ||||||||||||||
Net interest income after provision for loan losses | 84,198 | 84,743 | 76,179 | 71,272 | 73,357 | ||||||||||||||
Noninterest income | 9,887 | 12,749 | 10,133 | 9,455 | 13,579 | ||||||||||||||
Noninterest expense | 51,848 | 52,655 | 49,158 | 44,958 | 49,553 | ||||||||||||||
Income tax expense | 8,273 | 9,141 | 7,519 | 6,805 | 18,190 | ||||||||||||||
Net income | 33,964 | 35,696 | 29,635 | 28,964 | 19,193 | ||||||||||||||
Adjusted net income (1) | 34,120 | 36,593 | 32,239 | 29,231 | 25,313 | ||||||||||||||
Per Share Data (Common Stock) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Basic | $ | 1.11 | $ | 1.17 | $ | 1.02 | $ | 1.02 | $ | 0.69 | |||||||||
Diluted | 1.11 | 1.17 | 1.02 | 1.02 | 0.68 | ||||||||||||||
Adjusted earnings: | |||||||||||||||||||
Basic (1) | 1.12 | 1.20 | 1.11 | 1.03 | 0.91 | ||||||||||||||
Diluted (1) | 1.12 | 1.20 | 1.11 | 1.03 | 0.90 | ||||||||||||||
Dividends | 0.14 | 0.14 | 0.14 | 0.12 | 0.10 | ||||||||||||||
Book value | 52.50 | 51.42 | 50.49 | 47.76 | 47.28 | ||||||||||||||
Tangible book value (1) | 27.44 | 26.21 | 25.23 | 24.37 | 23.76 | ||||||||||||||
Common shares outstanding | 30,600,582 | 30,477,648 | 30,468,413 | 28,362,973 | 28,254,893 | ||||||||||||||
Weighted average basic shares outstanding (3) | 30,503,062 | 30,473,603 | 29,065,426 | 28,320,792 | 27,933,201 | ||||||||||||||
Weighted average diluted shares outstanding (3) | 30,503,062 | 30,563,717 | 29,157,817 | 28,426,145 | 28,041,371 | ||||||||||||||
Selected Period End Balance Sheet Data | |||||||||||||||||||
Total assets | $ | 9,849,965 | $ | 9,891,464 | $ | 10,017,037 | $ | 8,811,014 | $ | 8,684,463 | |||||||||
Cash and cash equivalents | 130,779 | 290,170 | 447,049 | 398,102 | 431,102 | ||||||||||||||
Securities available for sale | 685,350 | 760,995 | 791,065 | 762,662 | 763,002 | ||||||||||||||
Loans held for sale | 32,727 | 27,730 | 30,056 | 28,017 | 39,202 | ||||||||||||||
Loans held for investment, excluding mortgage warehouse purchase loans | 7,717,510 | 7,554,124 | 7,479,977 | 6,527,681 | 6,309,549 | ||||||||||||||
Mortgage warehouse purchase loans | 170,290 | 150,267 | 164,790 | 124,700 | 164,694 | ||||||||||||||
Allowance for loan losses | 44,802 | 42,166 | 43,308 | 41,960 | 39,402 | ||||||||||||||
Goodwill and core deposit intangible | 766,839 | 768,317 | 769,630 | 663,371 | 664,702 | ||||||||||||||
Other real estate owned | 4,200 | 4,610 | 4,200 | 5,463 | 7,126 | ||||||||||||||
Noninterest-bearing deposits | 2,145,930 | 2,235,377 | 2,170,639 | 1,836,929 | 1,907,770 | ||||||||||||||
Interest-bearing deposits | 5,591,864 | 5,547,475 | 5,362,766 | 4,957,731 | 4,725,052 | ||||||||||||||
Borrowings (other than junior subordinated debentures) | 427,316 | 482,207 | 887,724 | 617,636 | 667,578 | ||||||||||||||
Junior subordinated debentures | 27,852 | 27,803 | 27,753 | 27,704 | 27,654 | ||||||||||||||
Total stockholders' equity | 1,606,433 | 1,567,184 | 1,538,269 | 1,354,699 | 1,336,018 |
As of and for the quarter ended | ||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||
Selected Performance Metrics | ||||||||||||||
Return on average assets | 1.34 | % | 1.41 | % | 1.30 | % | 1.35 | % | 0.87 | % | ||||
Return on average equity | 8.51 | 9.11 | 8.38 | 8.72 | 5.79 | |||||||||
Return on tangible equity (4) | 16.52 | 18.01 | 16.49 | 17.19 | 11.72 | |||||||||
Adjusted return on average assets (1) | 1.35 | 1.45 | 1.41 | 1.37 | 1.15 | |||||||||
Adjusted return on average equity (1) | 8.55 | 9.34 | 9.12 | 8.80 | 7.64 | |||||||||
Adjusted return on tangible equity (1) (4) | 16.60 | 18.47 | 17.94 | 17.34 | 15.46 | |||||||||
Net interest margin | 3.98 | 3.94 | 3.97 | 4.00 | 3.97 | |||||||||
Adjusted net interest margin (2) | 3.93 | 3.89 | 3.93 | 3.96 | 3.84 | |||||||||
Efficiency ratio | 51.91 | 51.64 | 53.64 | 52.30 | 54.29 | |||||||||
Adjusted efficiency ratio (1) | 51.26 | 49.77 | 49.50 | 51.40 | 50.06 | |||||||||
Credit Quality Ratios (5) | ||||||||||||||
Nonperforming assets to total assets | 0.17 | % | 0.16 | % | 0.17 | % | 0.23 | % | 0.26 | % | ||||
Nonperforming loans to total loans held for investment (6) | 0.16 | 0.14 | 0.17 | 0.23 | 0.24 | |||||||||
Nonperforming assets to total loans held for investment and other real estate (6) | 0.22 | 0.20 | 0.23 | 0.31 | 0.36 | |||||||||
Allowance for loan losses to non-performing loans | 354.73 | 395.37 | 344.70 | 281.20 | 255.62 | |||||||||
Allowance for loan losses to total loans held for investment (6) | 0.58 | 0.56 | 0.58 | 0.64 | 0.62 | |||||||||
Net charge-offs to average loans outstanding (annualized) | 0.01 | 0.14 | 0.08 | 0.01 | 0.02 | |||||||||
Capital Ratios | ||||||||||||||
Estimated common equity tier 1 capital to risk-weighted assets | 10.05 | % | 9.83 | % | 9.31 | % | 9.59 | % | 9.61 | % | ||||
Estimated tier 1 capital to average assets | 9.57 | 9.20 | 9.71 | 9.18 | 8.92 | |||||||||
Estimated tier 1 capital to risk-weighted assets | 10.41 | 10.20 | 9.67 | 10.00 | 10.05 | |||||||||
Estimated total capital to risk-weighted assets | 12.58 | 12.38 | 11.85 | 12.48 | 12.56 | |||||||||
Total stockholders' equity to total assets | 16.31 | 15.84 | 15.36 | 15.38 | 15.38 | |||||||||
Tangible common equity to tangible assets (1) | 9.24 | 8.76 | 8.31 | 8.49 | 8.37 |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Per Share Data | |||||||
Net income - basic | $ | 4.33 | $ | 2.98 | |||
Net income - diluted | 4.33 | 2.97 | |||||
Cash dividends | 0.54 | 0.40 | |||||
Book value | 52.50 | 47.28 | |||||
Outstanding Shares | |||||||
Period-end shares | 30,600,582 | 28,254,893 | |||||
Weighted average shares - basic | 29,599,119 | 25,636,292 | |||||
Weighted average shares - diluted | 29,599,119 | 25,742,362 | |||||
Selected Annual Ratios | |||||||
Return on average assets | 1.35 | % | 0.96 | % | |||
Return on average equity | 8.69 | 6.71 | |||||
Net interest margin | 3.97 | 3.84 |
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 106,798 | $ | 82,094 | $ | 384,791 | $ | 290,357 | ||||||||
Interest on taxable securities | 3,763 | 2,623 | 14,007 | 8,229 | ||||||||||||
Interest on nontaxable securities | 1,105 | 1,220 | 4,580 | 3,877 | ||||||||||||
Interest on interest-bearing deposits and other | 1,139 | 1,483 | 3,912 | 5,451 | ||||||||||||
Total interest income | 112,805 | 87,420 | 407,290 | 307,914 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 20,761 | 8,475 | 60,767 | 28,518 | ||||||||||||
Interest on FHLB advances | 2,410 | 1,587 | 10,264 | 5,858 | ||||||||||||
Interest on repurchase agreements and other borrowings | 2,099 | 1,761 | 8,398 | 6,898 | ||||||||||||
Interest on junior subordinated debentures | 427 | 343 | 1,609 | 1,162 | ||||||||||||
Total interest expense | 25,697 | 12,166 | 81,038 | 42,436 | ||||||||||||
Net interest income | 87,108 | 75,254 | 326,252 | 265,478 | ||||||||||||
Provision for loan losses | 2,910 | 1,897 | 9,860 | 8,265 | ||||||||||||
Net interest income after provision for loan losses | 84,198 | 73,357 | 316,392 | 257,213 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 3,617 | 3,591 | 14,224 | 12,955 | ||||||||||||
Mortgage banking revenue | 3,378 | 3,432 | 15,512 | 13,755 | ||||||||||||
Gain on sale of loans | — | — | — | 351 | ||||||||||||
Gain on sale of branches | — | 3,044 | — | 2,917 | ||||||||||||
Gain (loss) on sale of other real estate | 56 | (124 | ) | 269 | (160 | ) | ||||||||||
Gain on sale of repossessed assets | — | 1,000 | — | 1,010 | ||||||||||||
(Loss) gain on sale of securities available for sale | (232 | ) | 72 | (581 | ) | 124 | ||||||||||
(Loss) gain on sale of premises and equipment | — | (6 | ) | 123 | (21 | ) | ||||||||||
Increase in cash surrender value of BOLI | 842 | 789 | 3,170 | 2,748 | ||||||||||||
Other | 2,226 | 1,781 | 9,507 | 7,608 | ||||||||||||
Total noninterest income | 9,887 | 13,579 | 42,224 | 41,287 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 29,625 | 26,131 | 111,697 | 95,741 | ||||||||||||
Occupancy | 6,491 | 5,680 | 24,786 | 22,079 | ||||||||||||
Data processing | 2,893 | 2,148 | 10,754 | 8,597 | ||||||||||||
FDIC assessment | 1,093 | 1,155 | 3,306 | 4,311 | ||||||||||||
Advertising and public relations | 607 | 458 | 1,907 | 1,452 | ||||||||||||
Communications | 809 | 762 | 3,353 | 2,860 | ||||||||||||
Other real estate owned expenses, net | 47 | 81 | 318 | 304 | ||||||||||||
Impairment of other real estate | — | 375 | 85 | 1,412 | ||||||||||||
Core deposit intangible amortization | 1,496 | 1,328 | 5,739 | 4,639 | ||||||||||||
Professional fees | 1,129 | 1,352 | 4,556 | 4,564 | ||||||||||||
Acquisition expense, including legal | 486 | 4,651 | 6,157 | 12,898 | ||||||||||||
Other | 7,172 | 5,432 | 25,961 | 17,956 | ||||||||||||
Total noninterest expense | 51,848 | 49,553 | 198,619 | 176,813 | ||||||||||||
Income before taxes | 42,237 | 37,383 | 159,997 | 121,687 | ||||||||||||
Income tax expense | 8,273 | 18,190 | 31,738 | 45,175 | ||||||||||||
Net income | $ | 33,964 | $ | 19,193 | $ | 128,259 | $ | 76,512 |
December 31, | |||||||
Assets | 2018 | 2017 | |||||
Cash and due from banks | $ | 102,024 | $ | 187,574 | |||
Interest-bearing deposits in other banks | 28,755 | 243,528 | |||||
Cash and cash equivalents | 130,779 | 431,102 | |||||
Certificates of deposit held in other banks | 1,225 | 12,985 | |||||
Securities available for sale, at fair value | 685,350 | 763,002 | |||||
Loans held for sale | 32,727 | 39,202 | |||||
Loans, net | 7,839,695 | 6,432,273 | |||||
Premises and equipment, net | 167,866 | 147,835 | |||||
Other real estate owned | 4,200 | 7,126 | |||||
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 26,870 | 29,184 | |||||
Bank-owned life insurance (BOLI) | 129,521 | 113,170 | |||||
Deferred tax asset | 13,180 | 9,763 | |||||
Goodwill | 721,797 | 621,458 | |||||
Core deposit intangible, net | 45,042 | 43,244 | |||||
Other assets | 51,713 | 34,119 | |||||
Total assets | $ | 9,849,965 | $ | 8,684,463 | |||
Liabilities and Stockholders’ Equity | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 2,145,930 | $ | 1,907,770 | |||
Interest-bearing | 5,591,864 | 4,725,052 | |||||
Total deposits | 7,737,794 | 6,632,822 | |||||
FHLB advances | 290,000 | 530,667 | |||||
Other borrowings | 137,316 | 136,911 | |||||
Junior subordinated debentures | 27,852 | 27,654 | |||||
Other liabilities | 50,570 | 20,391 | |||||
Total liabilities | 8,243,532 | 7,348,445 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 306 | 283 | |||||
Additional paid-in capital | 1,317,616 | 1,151,990 | |||||
Retained earnings | 296,816 | 184,232 | |||||
Accumulated other comprehensive loss | (8,305 | ) | (487 | ) | |||
Total stockholders’ equity | 1,606,433 | 1,336,018 | |||||
Total liabilities and stockholders’ equity | $ | 9,849,965 | $ | 8,684,463 |
Three Months Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate (3) | Average Outstanding Balance | Interest | Yield/ Rate (3) | |||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans (1) | $ | 7,762,950 | $ | 106,798 | 5.46 | % | $ | 6,378,422 | $ | 82,094 | 5.11 | % | ||||||||||
Taxable securities | 591,259 | 3,763 | 2.53 | 567,394 | 2,623 | 1.83 | ||||||||||||||||
Nontaxable securities | 164,687 | 1,105 | 2.66 | 195,526 | 1,220 | 2.48 | ||||||||||||||||
Interest-bearing deposits and other | 173,999 | 1,139 | 2.60 | 379,251 | 1,483 | 1.55 | ||||||||||||||||
Total interest-earning assets | 8,692,895 | $ | 112,805 | 5.15 | 7,520,593 | $ | 87,420 | 4.61 | ||||||||||||||
Noninterest-earning assets | 1,333,256 | 1,182,004 | ||||||||||||||||||||
Total assets | $ | 10,026,151 | $ | 8,702,597 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Checking accounts | $ | 2,888,198 | $ | 8,039 | 1.10 | % | $ | 2,986,348 | $ | 4,477 | 0.59 | % | ||||||||||
Savings accounts | 299,670 | 241 | 0.32 | 286,462 | 113 | 0.16 | ||||||||||||||||
Money market accounts | 1,297,603 | 7,305 | 2.23 | 587,987 | 1,717 | 1.16 | ||||||||||||||||
Certificates of deposit | 1,136,868 | 5,176 | 1.81 | 933,779 | 2,168 | 0.92 | ||||||||||||||||
Total deposits | 5,622,339 | 20,761 | 1.46 | 4,794,576 | 8,475 | 0.70 | ||||||||||||||||
FHLB advances | 426,630 | 2,410 | 2.24 | 472,359 | 1,587 | 1.33 | ||||||||||||||||
Other borrowings and repurchase agreements | 137,278 | 2,099 | 6.07 | 113,694 | 1,761 | 6.15 | ||||||||||||||||
Junior subordinated debentures | 27,835 | 427 | 6.09 | 27,637 | 343 | 4.92 | ||||||||||||||||
Total interest-bearing liabilities | 6,214,082 | 25,697 | 1.64 | 5,408,266 | 12,166 | 0.89 | ||||||||||||||||
Noninterest-bearing checking accounts | 2,194,848 | 1,950,246 | ||||||||||||||||||||
Noninterest-bearing liabilities | 34,361 | 29,130 | ||||||||||||||||||||
Stockholders’ equity | 1,582,860 | 1,314,955 | ||||||||||||||||||||
Total liabilities and equity | $ | 10,026,151 | $ | 8,702,597 | ||||||||||||||||||
Net interest income | $ | 87,108 | $ | 75,254 | ||||||||||||||||||
Interest rate spread | 3.51 | % | 3.72 | % | ||||||||||||||||||
Net interest margin (2) | 3.98 | 3.97 | ||||||||||||||||||||
Net interest income and margin (tax equivalent basis) (4) | $ | 87,613 | 4.00 | $ | 76,099 | 4.01 | ||||||||||||||||
Average interest earning assets to interest bearing liabilities | 139.89 | 139.06 |
For The Years Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | |||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans (1) | $ | 7,254,635 | $ | 384,791 | 5.30 | % | $ | 5,871,990 | $ | 290,357 | 4.94 | % | ||||||||||
Taxable securities | 603,474 | 14,007 | 2.32 | 481,323 | 8,229 | 1.71 | ||||||||||||||||
Nontaxable securities | 177,348 | 4,580 | 2.58 | 157,086 | 3,877 | 2.47 | ||||||||||||||||
Interest-bearing deposits and other | 179,411 | 3,912 | 2.18 | 409,976 | 5,451 | 1.33 | ||||||||||||||||
Total interest-earning assets | 8,214,868 | $ | 407,290 | 4.96 | 6,920,375 | $ | 307,914 | 4.45 | ||||||||||||||
Noninterest-earning assets | 1,264,066 | 1,046,046 | ||||||||||||||||||||
Total assets | $ | 9,478,934 | $ | 7,966,421 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Checking accounts | $ | 2,943,519 | $ | 26,593 | 0.90 | % | $ | 2,630,477 | $ | 13,305 | 0.51 | % | ||||||||||
Savings accounts | 290,325 | 703 | 0.24 | 263,381 | 380 | 0.14 | ||||||||||||||||
Money market accounts | 998,916 | 19,043 | 1.91 | 605,064 | 6,168 | 1.02 | ||||||||||||||||
Certificates of deposit | 1,009,644 | 14,428 | 1.43 | 1,002,753 | 8,665 | 0.86 | ||||||||||||||||
Total deposits | 5,242,404 | 60,767 | 1.16 | 4,501,675 | 28,518 | 0.63 | ||||||||||||||||
FHLB advances | 515,479 | 10,264 | 1.99 | 483,923 | 5,858 | 1.21 | ||||||||||||||||
Other borrowings and repurchase agreements | 137,549 | 8,398 | 6.11 | 117,162 | 6,898 | 5.89 | ||||||||||||||||
Junior subordinated debentures | 27,761 | 1,609 | 5.80 | 25,252 | 1,162 | 4.60 | ||||||||||||||||
Total interest-bearing liabilities | 5,923,193 | 81,038 | 1.37 | 5,128,012 | 42,436 | 0.83 | ||||||||||||||||
Noninterest-bearing checking accounts | 2,052,675 | 1,671,872 | ||||||||||||||||||||
Noninterest-bearing liabilities | 26,378 | 26,964 | ||||||||||||||||||||
Stockholders’ equity | 1,476,688 | 1,139,573 | ||||||||||||||||||||
Total liabilities and equity | $ | 9,478,934 | $ | 7,966,421 | ||||||||||||||||||
Net interest income | $ | 326,252 | $ | 265,478 | ||||||||||||||||||
Interest rate spread | 3.59 | % | 3.62 | % | ||||||||||||||||||
Net interest margin (2) | 3.97 | 3.84 | ||||||||||||||||||||
Net interest income and margin (tax equivalent basis) (3) | $ | 328,090 | 3.99 | $ | 268,235 | 3.88 | ||||||||||||||||
Average interest earning assets to interest bearing liabilities | 138.69 | 134.95 |
Totals loans by category | ||||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Commercial (1) | $ | 1,361,104 | 17.2 | % | $ | 1,059,984 | 16.3 | % | ||||||
Real estate: | ||||||||||||||
Commercial real estate | 4,141,356 | 52.3 | 3,369,892 | 51.7 | ||||||||||
Commercial construction, land and land development | 905,421 | 11.4 | 744,868 | 11.5 | ||||||||||
Residential real estate (2) | 1,082,248 | 13.7 | 931,495 | 14.3 | ||||||||||
Single-family interim construction | 331,748 | 4.2 | 289,680 | 4.4 | ||||||||||
Agricultural | 66,638 | 0.8 | 82,583 | 1.3 | ||||||||||
Consumer | 31,759 | 0.4 | 34,639 | 0.5 | ||||||||||
Other | 253 | — | 304 | — | ||||||||||
Total loans | 7,920,527 | 100.0 | % | 6,513,445 | 100.0 | % | ||||||||
Deferred loan fees | (3,303 | ) | (2,568 | ) | ||||||||||
Allowance for loan losses | (44,802 | ) | (39,402 | ) | ||||||||||
Total loans, net | $ | 7,872,422 | $ | 6,471,475 |
For the Three Months Ended | ||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||
ADJUSTED NET INCOME | ||||||||||||||||
Net Interest Income - Reported | (a) | $ | 87,108 | $ | 86,268 | $ | 78,909 | $ | 73,967 | $ | 75,254 | |||||
Income recognized on acquired loans | (967 | ) | (1,051 | ) | (954 | ) | (739 | ) | (2,463 | ) | ||||||
Adjusted Net Interest Income | (b) | 86,141 | 85,217 | 77,955 | 73,228 | 72,791 | ||||||||||
Provision Expense - Reported | (c) | 2,910 | 1,525 | 2,730 | 2,695 | 1,897 | ||||||||||
Noninterest Income - Reported | (d) | 9,887 | 12,749 | 10,133 | 9,455 | 13,579 | ||||||||||
Loss on sale of branch | — | — | — | — | (3,044 | ) | ||||||||||
Gain on sale of OREO and repossessed assets | (56 | ) | (95 | ) | (58 | ) | (60 | ) | (876 | ) | ||||||
Loss (gain) on sale of securities | 232 | 115 | 10 | 224 | (72 | ) | ||||||||||
(Gain) loss on sale of premises and equipment | — | (220 | ) | 89 | 8 | 6 | ||||||||||
Recoveries on loans charged off prior to acquisition | (109 | ) | (230 | ) | (336 | ) | (287 | ) | (65 | ) | ||||||
Adjusted Noninterest Income | (e) | 9,954 | 12,319 | 9,838 | 9,340 | 9,528 | ||||||||||
Noninterest Expense - Reported | (f) | 51,848 | 52,655 | 49,158 | 44,958 | 49,553 | ||||||||||
OREO impairment | — | — | — | (85 | ) | (375 | ) | |||||||||
IPO related stock grants | — | — | (11 | ) | (125 | ) | (128 | ) | ||||||||
Acquisition expense (4) | (1,094 | ) | (2,594 | ) | (4,296 | ) | (974 | ) | (6,509 | ) | ||||||
Adjusted Noninterest Expense | (g) | 50,754 | 50,061 | 44,851 | 43,774 | 42,541 | ||||||||||
Adjusted Net Income (1) | (b) - (c) + (e) - (g) | $ | 34,120 | $ | 36,593 | $ | 32,239 | $ | 29,231 | $ | 25,313 | |||||
ADJUSTED PROFITABILITY | ||||||||||||||||
Adjusted Return on Average Assets (2) | 1.35 | % | 1.45 | % | 1.41 | % | 1.37 | % | 1.15 | % | ||||||
Adjusted Return on Average Equity (2) | 8.55 | % | 9.34 | % | 9.12 | % | 8.80 | % | 7.64 | % | ||||||
Adjusted Return on Tangible Equity (2) | 16.60 | % | 18.47 | % | 17.94 | % | 17.34 | % | 15.46 | % | ||||||
Total Average Assets | $ | 10,026,151 | $ | 10,028,224 | $ | 9,164,915 | $ | 8,675,596 | $ | 8,702,597 | ||||||
Total Average Stockholders' Equity | $ | 1,582,860 | $ | 1,554,502 | $ | 1,418,536 | $ | 1,347,401 | $ | 1,314,955 | ||||||
Total Average Tangible Stockholders' Equity (3) | $ | 815,533 | $ | 786,126 | $ | 720,653 | $ | 683,525 | $ | 649,541 | ||||||
EFFICIENCY RATIO | ||||||||||||||||
Amortization of core deposit intangibles | (h) | $ | 1,496 | $ | 1,519 | $ | 1,393 | $ | 1,331 | $ | 1,328 | |||||
Reported Efficiency Ratio | (f - h) / (a + d) | 51.91 | % | 51.64 | % | 53.64 | % | 52.30 | % | 54.29 | % | |||||
Adjusted Efficiency Ratio | (g - h) / (b + e) | 51.26 | % | 49.77 | % | 49.50 | % | 51.40 | % | 50.06 | % |
Tangible Book Value & Tangible Common Equity To Tangible Asset Ratio | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Tangible Common Equity | |||||||
Total common stockholders' equity | $ | 1,606,433 | $ | 1,336,018 | |||
Adjustments: | |||||||
Goodwill | (721,797 | ) | (621,458 | ) | |||
Core deposit intangibles, net | (45,042 | ) | (43,244 | ) | |||
Tangible common equity | $ | 839,594 | $ | 671,316 | |||
Tangible Assets | |||||||
Total assets | $ | 9,849,965 | $ | 8,684,463 | |||
Adjustments: | |||||||
Goodwill | (721,797 | ) | (621,458 | ) | |||
Core deposit intangibles | (45,042 | ) | (43,244 | ) | |||
Tangible assets | $ | 9,083,126 | $ | 8,019,761 | |||
Common shares outstanding | 30,600,582 | 28,254,893 | |||||
Tangible common equity to tangible assets | 9.24 | % | 8.37 | % | |||
Book value per common share | $ | 52.50 | $ | 47.28 | |||
Tangible book value per common share | 27.44 | 23.76 |
@J)X\H6'S''Z'_]57%51:@@X..">_M51*/^"E'C
M&[OG/A[PSHVF6><(-0,MU+CMDJT:_AMKR:K8A7@M#TZV*I47:;U/T.D(9E
M)& 1CGZ4Q!N.2W 7!QZYQ7P/X"_X*3:O%J<*^-/"]G=V+$*\^BL\,J#^\$D9
M@Y]MR_6OM;P%\0_#_P 3?#%IX@\-W\>H:;
(;@[+5UF\VVNWQ]P
M,0"CGL#D'INR0#[I\7/&\OPU^'WB#Q5#9K>/I=H]VMJ[E%
Z!::(WA'06T6UF-Q!ILFFPFV20
M@Y=8RNT,=S<@9Y-9<'P+^'<#+L\!>%UF4^8)%T:V!0CT.RN]O)?,7KR.BCVJ
MN P229B=Q'&3UH BD+LA!&TX!]![4YP$AD(ZAL TZ!-NVXZ#.<>OM4P551
MXE^\QR6/Z8H SS&6C?>?WF[@'^$]JADCR6 'RA<9/KWJPP)=2K'([^OI4<<9
M:*7G#9[]J *=Q\ZQ@'+YX'K5:? NU*J"PZ9J\5Q&A7EM^%R>U4IB&O,CYER
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M*C99LX#J&/\ 44 22,6BB#<<<+]3Q3.<;?I3YL-M9,<8 ]Z;*N"N/O$XZ=*
M#:1.IW_=;CZ"I-H$F2. 2V*&94F+ 9V8/KS3PGR+)U9N3F@!0^QV(4X88_#T
MHV (#N^8\BG@$P CC'7/\J2,AESWYP* 'OM5F"9VL
_&>>]
M>/\ CK]K+X8_#KQ;J'A[7->EMM6L'5)XH[">0(2H8894(/# \&M(4YU':"N1
M.<::O-V/7),"5=GS,V!P><8Z4ZX8A$C4\XP6'UQ7%?#/XS>%?C'IM_J7A34'
MOK:RE\F:1[>2$J[+G&'49X-=I&I=%)^4KU/?'M4RC*#Y9*S'&2DKQ=T1F!0R
MH/N@AO\ /YU+N!4GD <"EQBX9<<,G!]!ZU%*< J> 1G/K[HVCB&U?4=Z:@:,[,\-\V">G&* (@2$<+DX(QC]:+B/
M;M1CG<,D#UKR+QA^UI\,/ 'BC4M!UG7)K;5+%_+FA%A/($; (^94(/!'2NK^
M&OQ<\+_&/2KO4O"M])J%M:SBUE=[>2$JY4-C#@$\'K6TJ-2,>>478R56G*7*
MI*YV*)Y6T#G<(+B,J2
M4] RELCN54UL_P#!23XO:U:^(]*^']C=2V>E26*ZAJ B8K]J9Y'5$;U11'G'
M0EN?NBN!X"7UGV"?G?R.U8V/L/;6^7F?3GB7]L'X/^$KR:VU#QQ8S7"G:RV,
M
$+^41ZGI[$LBJW!G1>SKP>/O 8/8C];[>:.:."2-UD3:'$BG(((R"#_
M %KR\7A)86=F[I['HX7$QQ,;K1HLM&S L1A5/)Q][VIK,# 0N3N.!]