Texas | 0-12247 | 75-1848732 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1201 S. Beckham, Tyler, Texas | 75701 | |
(Address of principal executive offices) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
p | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
p | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
p | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
p | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(D) | Exhibits. The following materials are furnished as exhibits to this Current Report on Form 8-K: |
Exhibit Number | Description of Exhibit | ||
99.1 | Press release dated October 28, 2016 |
Southside Bancshares, Inc. | ||
Date: October 28, 2016 | By: | /s/ JULIE N. SHAMBURGER |
Julie N. Shamburger, CPA, Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
SOUTHSIDE BANCSHARES, INC. | |||||||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
As of | |||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 54,255 | $ | 45,663 | $ | 52,324 | $ | 54,288 | $ | 52,311 | |||||||||
Interest earning deposits | 144,833 | 18,450 | 16,130 | 26,687 | 19,583 | ||||||||||||||
Securities available for sale, at estimated fair value | 1,622,128 | 1,416,335 | 1,332,381 | 1,460,492 | 1,374,995 | ||||||||||||||
Securities held to maturity, at carrying value | 775,682 | 784,925 | 784,579 | 784,296 | 771,914 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 51,901 | 47,702 | 47,550 | 51,047 | 43,446 | ||||||||||||||
Loans held for sale | 5,301 | 5,883 | 4,971 | 3,811 | 4,883 | ||||||||||||||
Loans | 2,483,641 | 2,384,321 | 2,443,231 | 2,431,753 | 2,239,146 | ||||||||||||||
Less: Allowance for loan losses | (15,993 | ) | (14,908 | ) | (21,799 | ) | (19,736 | ) | (18,402 | ) | |||||||||
Net loans | 2,467,648 | 2,369,413 | 2,421,432 | 2,412,017 | 2,220,744 | ||||||||||||||
Premises & equipment, net | 106,777 | 107,242 | 107,556 | 107,929 | 109,087 | ||||||||||||||
Goodwill | 91,520 | 91,520 | 91,520 | 91,520 | 91,520 | ||||||||||||||
Other intangible assets, net | 5,060 | 5,534 | 6,029 | 6,548 | 7,090 | ||||||||||||||
Bank owned life insurance | 97,002 | 96,375 | 95,718 | 95,080 | 94,303 | ||||||||||||||
Other assets | 42,796 | 45,886 | 58,743 | 68,281 | 47,518 | ||||||||||||||
Total assets | $ | 5,464,903 | $ | 5,034,928 | $ | 5,018,933 | $ | 5,161,996 | $ | 4,837,394 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 747,270 | $ | 679,831 | $ | 698,695 | $ | 672,470 | $ | 681,618 | |||||||||
Interest bearing deposits | 2,834,117 | 2,890,418 | 2,920,673 | 2,782,937 | 2,646,259 | ||||||||||||||
Total deposits | 3,581,387 | 3,570,249 | 3,619,368 | 3,455,407 | 3,327,877 | ||||||||||||||
Short-term obligations | 720,634 | 385,717 | 259,646 | 647,836 | 445,008 | ||||||||||||||
Long-term obligations | 621,640 | 559,071 | 622,222 | 562,512 | 558,786 | ||||||||||||||
Other liabilities | 68,682 | 47,591 | 60,121 | 52,179 | 58,575 | ||||||||||||||
Total liabilities | 4,992,343 | 4,562,628 | 4,561,357 | 4,717,934 | 4,390,246 | ||||||||||||||
Shareholders' equity | 472,560 | 472,300 | 457,576 | 444,062 | 447,148 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 5,464,903 | $ | 5,034,928 | $ | 5,018,933 | $ | 5,161,996 | $ | 4,837,394 |
At or For the Three Months Ended | |||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
Income Statement: | |||||||||||||||||||
Total interest income | $ | 41,132 | $ | 41,089 | $ | 43,012 | $ | 39,964 | $ | 38,211 | |||||||||
Total interest expense | 7,202 | 6,711 | 6,396 | 5,268 | 4,928 | ||||||||||||||
Net interest income | 33,930 | 34,378 | 36,616 | 34,696 | 33,283 | ||||||||||||||
Provision for loan losses | 1,631 | 3,768 | 2,316 | 1,951 | 2,276 | ||||||||||||||
Net interest income after provision for loan losses | 32,299 | 30,610 | 34,300 | 32,745 | 31,007 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Deposit services | 5,335 | 5,099 | 5,085 | 4,990 | 5,213 | ||||||||||||||
Net gain on sale of securities available for sale | 2,343 | 728 | 2,441 | 204 | 875 | ||||||||||||||
Gain on sale of loans | 818 | 873 | 643 | 578 | 305 | ||||||||||||||
Trust income | 867 | 869 | 855 | 871 | 835 | ||||||||||||||
Bank owned life insurance income | 656 | 647 | 674 | 640 | 661 | ||||||||||||||
Brokerage services | 551 | 535 | 575 | 555 | 540 | ||||||||||||||
Other | 1,162 | 619 | 1,323 | 977 | 932 | ||||||||||||||
Total noninterest income | 11,732 | 9,370 | 11,596 | 8,815 | 9,361 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 15,203 | 14,849 | 17,732 | 16,420 | 15,733 | ||||||||||||||
Occupancy expense | 4,569 | 2,993 | 3,335 | 3,263 | 3,316 | ||||||||||||||
Advertising, travel & entertainment | 588 | 722 | 685 | 726 | 642 | ||||||||||||||
ATM and debit card expense | 868 | 736 | 712 | 1,086 | 617 | ||||||||||||||
Professional fees | 1,148 | 1,478 | 1,338 | 1,517 | 825 | ||||||||||||||
Software and data processing expense | 736 | 739 | 749 | 771 | 819 | ||||||||||||||
Telephone and communications | 407 | 468 | 484 | 372 | 534 | ||||||||||||||
FDIC insurance | 643 | 645 | 638 | 619 | 624 | ||||||||||||||
FHLB prepayment fees | — | 148 | — | — | — | ||||||||||||||
Other | 4,263 | 3,035 | 3,734 | 3,656 | 3,525 | ||||||||||||||
Total noninterest expense | 28,425 | 25,813 | 29,407 | 28,430 | 26,635 | ||||||||||||||
Income before income tax expense | 15,606 | 14,167 | 16,489 | 13,130 | 13,733 | ||||||||||||||
Income tax expense | 2,741 | 2,772 | 2,973 | 1,438 | 1,971 | ||||||||||||||
Net income | $ | 12,865 | $ | 11,395 | $ | 13,516 | $ | 11,692 | $ | 11,762 |
Common share data: | |||||||||||||||||||
Weighted-average basic shares outstanding | 26,262 | 26,230 | 26,449 | 26,653 | 26,632 | ||||||||||||||
Weighted-average diluted shares outstanding | 26,415 | 26,349 | 26,519 | 26,745 | 26,721 | ||||||||||||||
Shares outstanding end of period | 26,278 | 26,251 | 26,222 | 26,670 | 26,645 | ||||||||||||||
Net income per common share | |||||||||||||||||||
Basic | $ | 0.49 | $ | 0.43 | $ | 0.51 | $ | 0.44 | $ | 0.44 | |||||||||
Diluted | 0.49 | 0.43 | 0.51 | 0.44 | 0.44 | ||||||||||||||
Book value per common share | 17.98 | 17.99 | 17.46 | 16.66 | 16.78 | ||||||||||||||
Cash dividend paid per common share | 0.24 | 0.24 | 0.23 | 0.31 | 0.23 |
Selected Performance Ratios: | ||||||||||||||
Return on average assets | 0.98 | % | 0.90 | % | 1.07 | % | 0.92 | % | 0.96 | % | ||||
Return on average shareholders’ equity | 10.78 | 9.91 | 11.96 | 10.35 | 10.65 | |||||||||
Average yield on interest earning assets | 3.78 | 3.93 | 4.06 | 3.80 | 3.79 | |||||||||
Average rate on interest bearing liabilities | 0.72 | 0.69 | 0.66 | 0.54 | 0.54 | |||||||||
Net interest spread | 3.06 | 3.24 | 3.40 | 3.26 | 3.25 | |||||||||
Net interest margin | 3.19 | 3.35 | 3.51 | 3.35 | 3.35 | |||||||||
Average interest earnings assets to average interest bearing liabilities | 120.40 | 120.21 | 119.62 | 120.29 | 121.61 | |||||||||
Noninterest expense to average total assets | 2.17 | 2.05 | 2.33 | 2.25 | 2.18 | |||||||||
Efficiency ratio | 53.88 | 52.85 | 57.47 | 58.45 | 56.60 |
At or For the Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
Income Statement: | |||||||
Total interest income | $ | 125,233 | $ | 114,568 | |||
Total interest expense | 20,309 | 14,591 | |||||
Net interest income | 104,924 | 99,977 | |||||
Provision for loan losses | 7,715 | 6,392 | |||||
Net interest income after provision for loan losses | 97,209 | 93,585 | |||||
Noninterest income | |||||||
Deposit services | 15,519 | 15,122 | |||||
Net gain on sale of securities available for sale | 5,512 | 3,456 | |||||
Gain on sale of loans | 2,334 | 1,504 | |||||
Trust income | 2,591 | 2,548 | |||||
Bank owned life insurance income | 1,977 | 1,983 | |||||
Brokerage services | 1,661 | 1,651 | |||||
Other | 3,104 | 2,816 | |||||
Total noninterest income | 32,698 | 29,080 | |||||
Noninterest expense | |||||||
Salaries and employee benefits | 47,784 | 50,801 | |||||
Occupancy expense | 10,897 | 9,620 | |||||
Advertising, travel & entertainment | 1,995 | 1,982 | |||||
ATM and debit card expense | 2,316 | 2,046 | |||||
Professional fees | 3,964 | 2,360 | |||||
Software and data processing expense | 2,224 | 3,087 | |||||
Telephone and communications | 1,359 | 1,606 | |||||
FDIC insurance | 1,926 | 1,891 | |||||
FHLB prepayment fees | 148 | — | |||||
Other | 11,032 | 11,126 | |||||
Total noninterest expense | 83,645 | 84,519 | |||||
Income before income tax expense | 46,262 | 38,146 | |||||
Income tax expense | 8,486 | 5,841 | |||||
Net income | $ | 37,776 | $ | 32,305 |
Common share data: | |||||||
Weighted-average basic shares outstanding | 26,314 | 26,611 | |||||
Weighted-average diluted shares outstanding | 26,425 | 26,700 | |||||
Net income per common share | |||||||
Basic | $ | 1.43 | $ | 1.21 | |||
Diluted | 1.43 | 1.21 | |||||
Book value per common share | 17.98 | 16.78 | |||||
Cash dividend paid per common share | 0.71 | 0.69 |
Selected Performance Ratios: | |||||
Return on average assets | 0.98 | % | 0.90 | % | |
Return on average shareholders’ equity | 10.87 | 9.93 | |||
Average yield on interest earning assets | 3.92 | 3.85 | |||
Average yield on interest bearing liabilities | 0.69 | 0.53 | |||
Net interest spread | 3.23 | 3.32 | |||
Net interest margin | 3.35 | 3.41 | |||
Average interest earnings assets to average interest bearing liabilities | 120.08 | 120.07 | |||
Noninterest expense to average total assets | 2.18 | 2.34 | |||
Efficiency ratio | 54.78 | 59.63 |
Southside Bancshares, Inc. | |||||||||||||||||||
Selected Financial Data (Unaudited) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
Nonperforming assets | $ | 16,008 | $ | 24,510 | $ | 34,046 | $ | 32,480 | $ | 33,621 | |||||||||
Nonaccrual loans (1) | 8,536 | 11,767 | 21,927 | 20,526 | 20,988 | ||||||||||||||
Accruing loans past due more than 90 days (1) | 1 | 6 | 7 | 3 | — | ||||||||||||||
Restructured loans (2) | 7,193 | 12,477 | 11,762 | 11,143 | 11,772 | ||||||||||||||
Other real estate owned | 237 | 237 | 265 | 744 | 793 | ||||||||||||||
Repossessed assets | 41 | 23 | 85 | 64 | 68 | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Nonaccruing loans to total loans | 0.34 | % | 0.49 | % | 0.90 | % | 0.84 | % | 0.94 | % | |||||||||
Allowance for loan losses to nonaccruing loans | 187.36 | 126.69 | 99.42 | 96.15 | 87.68 | ||||||||||||||
Allowance for loan losses to nonperforming assets | 99.91 | 60.82 | 64.03 | 60.76 | 54.73 | ||||||||||||||
Allowance for loan losses to total loans | 0.64 | 0.63 | 0.89 | 0.81 | 0.82 | ||||||||||||||
Nonperforming assets to total assets | 0.29 | 0.49 | 0.68 | 0.63 | 0.70 | ||||||||||||||
Net charge-offs to average loans | 0.09 | 1.77 | 0.04 | 0.11 | 0.13 | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 8.65 | 9.38 | 9.12 | 8.60 | 9.24 | ||||||||||||||
Average shareholders’ equity to average total assets | 9.10 | 9.11 | 8.94 | 8.92 | 9.03 |
(1) | Excludes purchased credit impaired ("PCI") loans measured at fair value at acquisition. |
(2) | Includes $3.2 million, $8.3 million, $7.4 million, $7.5 million, and $6.8 million in PCI loans restructured as of September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively. |
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 466,323 | $ | 425,595 | $ | 464,750 | $ | 438,247 | $ | 342,282 | |||||||||
1-4 Family Residential | 644,746 | 633,400 | 644,826 | 655,410 | 678,431 | ||||||||||||||
Commercial | 759,795 | 694,272 | 657,962 | 635,210 | 537,161 | ||||||||||||||
Commercial Loans | 191,154 | 197,896 | 233,857 | 242,527 | 228,272 | ||||||||||||||
Municipal Loans | 293,949 | 292,909 | 286,217 | 288,115 | 262,384 | ||||||||||||||
Loans to Individuals | 127,674 | 140,249 | 155,619 | 172,244 | 190,616 | ||||||||||||||
Total Loans | $ | 2,483,641 | $ | 2,384,321 | $ | 2,443,231 | $ | 2,431,753 | $ | 2,239,146 |
AVERAGE BALANCES WITH AVERAGE YIELDS AND RATES | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2016 | June 30, 2016 | ||||||||||||||||||||
AVG | AVG | ||||||||||||||||||||
AVG | YIELD/ | AVG | YIELD/ | ||||||||||||||||||
BALANCE | INTEREST | RATE | BALANCE | INTEREST | RATE | ||||||||||||||||
ASSETS | |||||||||||||||||||||
INTEREST EARNING ASSETS: | |||||||||||||||||||||
Loans (1) (2) | $ | 2,436,349 | $ | 26,750 | 4.37 | % | $ | 2,426,733 | $ | 27,275 | 4.52 | % | |||||||||
Loans Held For Sale | 6,718 | 54 | 3.20 | % | 4,984 | 40 | 3.23 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment Securities (Taxable) (4) | 61,238 | 251 | 1.63 | % | 22,010 | 107 | 1.96 | % | |||||||||||||
Investment Securities (Tax-Exempt) (3) (4) | 690,635 | 8,911 | 5.13 | % | 657,568 | 8,636 | 5.28 | % | |||||||||||||
Mortgage-backed Securities (4) | 1,492,271 | 9,399 | 2.51 | % | 1,450,868 | 9,366 | 2.60 | % | |||||||||||||
Total Securities | 2,244,144 | 18,561 | 3.29 | % | 2,130,446 | 18,109 | 3.42 | % | |||||||||||||
FHLB stock and other investments, at cost | 54,085 | 186 | 1.37 | % | 52,952 | 185 | 1.41 | % | |||||||||||||
Interest Earning Deposits | 57,598 | 89 | 0.61 | % | 57,493 | 61 | 0.43 | % | |||||||||||||
Total Interest Earning Assets | 4,798,894 | 45,640 | 3.78 | % | 4,672,608 | 45,670 | 3.93 | % | |||||||||||||
NONINTEREST EARNING ASSETS: | |||||||||||||||||||||
Cash and Due From Banks | 49,418 | 47,079 | |||||||||||||||||||
Bank Premises and Equipment | 107,318 | 107,842 | |||||||||||||||||||
Other Assets | 278,599 | 270,141 | |||||||||||||||||||
Less: Allowance for Loan Losses | (14,989 | ) | (22,377 | ) | |||||||||||||||||
Total Assets | $ | 5,219,240 | $ | 5,075,293 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
INTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Savings Deposits | $ | 248,364 | 71 | 0.11 | % | $ | 244,639 | 68 | 0.11 | % | |||||||||||
Time Deposits | 949,019 | 2,073 | 0.87 | % | 976,600 | 1,927 | 0.79 | % | |||||||||||||
Interest Bearing Demand Deposits | 1,634,898 | 1,460 | 0.36 | % | 1,727,431 | 1,520 | 0.35 | % | |||||||||||||
Total Interest Bearing Deposits | 2,832,281 | 3,604 | 0.51 | % | 2,948,670 | 3,515 | 0.48 | % | |||||||||||||
Short-term Interest Bearing Liabilities | 608,130 | 1,122 | 0.73 | % | 385,858 | 906 | 0.94 | % | |||||||||||||
Long-term Interest Bearing Liabilities – FHLB Dallas | 472,470 | 1,857 | 1.56 | % | 492,296 | 1,874 | 1.53 | % | |||||||||||||
Subordinated Notes (5) | 12,823 | 189 | 5.86 | % | — | — | — | % | |||||||||||||
Long-term Debt (6) | 60,234 | 430 | 2.84 | % | 60,233 | 416 | 2.78 | % | |||||||||||||
Total Interest Bearing Liabilities | 3,985,938 | 7,202 | 0.72 | % | 3,887,057 | 6,711 | 0.69 | % | |||||||||||||
NONINTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Demand Deposits | 702,539 | 682,360 | |||||||||||||||||||
Other Liabilities | 55,783 | 43,360 | |||||||||||||||||||
Total Liabilities | 4,744,260 | 4,612,777 | |||||||||||||||||||
SHAREHOLDERS’ EQUITY | 474,980 | 462,516 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,219,240 | $ | 5,075,293 | |||||||||||||||||
NET INTEREST INCOME | $ | 38,438 | $ | 38,959 | |||||||||||||||||
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | 3.19 | % | 3.35 | % | |||||||||||||||||
NET INTEREST SPREAD | 3.06 | % | 3.24 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $1,064 and $1,082 for the three months ended September 30, 2016 and June 30, 2016, respectively. |
(3) | Interest income includes taxable-equivalent adjustments of $3,444 and $3,499 for the three months ended September 30, 2016 and June 30, 2016, respectively. |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | The unamortized debt issuance costs deducted from the carrying amount of the subordinated notes totaled approximately $220,000 for the three months ended September 30, 2016. |
(6) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs related to a recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability, our average balance sheets for the three months ended September 30, 2016 and June 30, 2016 reflect a decrease in long-term debt of $77,000 and $78,000, respectively. |
Three Months Ended | |||||||||||||||||||||
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||
AVG | AVG | ||||||||||||||||||||
AVG | YIELD/ | AVG | YIELD/ | ||||||||||||||||||
BALANCE | INTEREST | RATE | BALANCE | INTEREST | RATE | ||||||||||||||||
ASSETS | |||||||||||||||||||||
INTEREST EARNING ASSETS: | |||||||||||||||||||||
Loans (1) (2) | $ | 2,434,837 | $ | 28,793 | 4.76 | % | $ | 2,318,162 | $ | 25,865 | 4.43 | % | |||||||||
Loans Held For Sale | 3,581 | 32 | 3.59 | % | 2,740 | 30 | 4.34 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment Securities (Taxable) (4) | 41,659 | 214 | 2.07 | % | 81,344 | 416 | 2.03 | % | |||||||||||||
Investment Securities (Tax-Exempt) (3) (4) | 635,766 | 8,494 | 5.37 | % | 637,993 | 8,645 | 5.38 | % | |||||||||||||
Mortgage-backed Securities (4) | 1,454,343 | 9,391 | 2.60 | % | 1,493,020 | 9,215 | 2.45 | % | |||||||||||||
Total Securities | 2,131,768 | 18,099 | 3.41 | % | 2,212,357 | 18,276 | 3.28 | % | |||||||||||||
FHLB stock and other investments, at cost | 55,116 | 217 | 1.58 | % | 53,643 | 75 | 0.55 | % | |||||||||||||
Interest Earning Deposits | 51,246 | 70 | 0.55 | % | 34,147 | 23 | 0.27 | % | |||||||||||||
Total Interest Earning Assets | 4,676,548 | 47,211 | 4.06 | % | 4,621,049 | 44,269 | 3.80 | % | |||||||||||||
NONINTEREST EARNING ASSETS: | |||||||||||||||||||||
Cash and Due From Banks | 55,732 | 53,267 | |||||||||||||||||||
Bank Premises and Equipment | 107,941 | 108,812 | |||||||||||||||||||
Other Assets | 262,081 | 258,837 | |||||||||||||||||||
Less: Allowance for Loan Losses | (20,088 | ) | (18,720 | ) | |||||||||||||||||
Total Assets | $ | 5,082,214 | $ | 5,023,245 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
INTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Savings Deposits | $ | 235,492 | 65 | 0.11 | % | $ | 232,561 | 61 | 0.10 | % | |||||||||||
Time Deposits | 915,316 | 1,723 | 0.76 | % | 833,141 | 1,477 | 0.70 | % | |||||||||||||
Interest Bearing Demand Deposits | 1,717,717 | 1,468 | 0.34 | % | 1,594,109 | 1,117 | 0.28 | % | |||||||||||||
Total Interest Bearing Deposits | 2,868,525 | 3,256 | 0.46 | % | 2,659,811 | 2,655 | 0.40 | % | |||||||||||||
Short-term Interest Bearing Liabilities | 413,985 | 696 | 0.68 | % | 630,998 | 600 | 0.38 | % | |||||||||||||
Long-term Interest Bearing Liabilities – FHLB Dallas | 566,825 | 2,039 | 1.45 | % | 490,396 | 1,638 | 1.33 | % | |||||||||||||
Long-term Debt (5) | 60,232 | 405 | 2.70 | % | 60,231 | 375 | 2.47 | % | |||||||||||||
Total Interest Bearing Liabilities | 3,909,567 | 6,396 | 0.66 | % | 3,841,436 | 5,268 | 0.54 | % | |||||||||||||
NONINTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Demand Deposits | 672,865 | 686,574 | |||||||||||||||||||
Other Liabilities | 45,390 | 47,155 | |||||||||||||||||||
Total Liabilities | 4,627,822 | 4,575,165 | |||||||||||||||||||
SHAREHOLDERS’ EQUITY | 454,392 | 448,080 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,082,214 | $ | 5,023,245 | |||||||||||||||||
NET INTEREST INCOME | $ | 40,815 | $ | 39,001 | |||||||||||||||||
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | 3.51 | % | 3.35 | % | |||||||||||||||||
NET INTEREST SPREAD | 3.40 | % | 3.26 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $1,060 and $1,068 for the three months ended March 31, 2016 and December 31, 2015, respectively. |
(3) | Interest income includes taxable-equivalent adjustments of $3,139 and $3,237 for the three months ended March 31, 2016 and December 31, 2015, respectively. |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs related to a recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability, our average balance sheets for the three months ended March 31, 2016 and December 31, 2015 reflect a decrease in long-term debt of $79,000 and $80,000, respectively. |
Three Months Ended | ||||||||||
September 30, 2015 | ||||||||||
AVG | ||||||||||
AVG | YIELD/ | |||||||||
BALANCE | INTEREST | RATE | ||||||||
ASSETS | ||||||||||
INTEREST EARNING ASSETS: | ||||||||||
Loans (1) (2) | $ | 2,200,241 | $ | 24,779 | 4.47 | % | ||||
Loans Held For Sale | 5,327 | 52 | 3.87 | % | ||||||
Securities: | ||||||||||
Investment Securities (Taxable) (4) | 86,105 | 475 | 2.19 | % | ||||||
Investment Securities (Tax-Exempt) (3) (4) | 638,767 | 8,750 | 5.43 | % | ||||||
Mortgage-backed Securities (4) | 1,441,129 | 8,318 | 2.29 | % | ||||||
Total Securities | 2,166,001 | 17,543 | 3.21 | % | ||||||
FHLB stock and other investments, at cost | 45,963 | 65 | 0.56 | % | ||||||
Interest Earning Deposits | 26,216 | 15 | 0.23 | % | ||||||
Total Interest Earning Assets | 4,443,748 | 42,454 | 3.79 | % | ||||||
NONINTEREST EARNING ASSETS: | ||||||||||
Cash and Due From Banks | 49,285 | |||||||||
Bank Premises and Equipment | 110,028 | |||||||||
Other Assets | 262,956 | |||||||||
Less: Allowance for Loan Losses | (17,021 | ) | ||||||||
Total Assets | $ | 4,848,996 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||
Savings Deposits | $ | 232,903 | 60 | 0.10 | % | |||||
Time Deposits | 833,962 | 1,360 | 0.65 | % | ||||||
Interest Bearing Demand Deposits | 1,600,454 | 1,065 | 0.26 | % | ||||||
Total Interest Bearing Deposits | 2,667,319 | 2,485 | 0.37 | % | ||||||
Short-term Interest Bearing Liabilities | 398,905 | 354 | 0.35 | % | ||||||
Long-term Interest Bearing Liabilities – FHLB Dallas | 527,591 | 1,720 | 1.29 | % | ||||||
Long-term Debt (5) | 60,229 | 369 | 2.43 | % | ||||||
Total Interest Bearing Liabilities | 3,654,044 | 4,928 | 0.54 | % | ||||||
NONINTEREST BEARING LIABILITIES: | ||||||||||
Demand Deposits | 715,326 | |||||||||
Other Liabilities | 41,606 | |||||||||
Total Liabilities | 4,410,976 | |||||||||
SHAREHOLDERS’ EQUITY | 438,020 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 4,848,996 | ||||||||
NET INTEREST INCOME | $ | 37,526 | ||||||||
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | 3.35 | % | ||||||||
NET INTEREST SPREAD | 3.25 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustment of $1,044 for the three months ended September 30, 2015. |
(3) | Interest income includes taxable-equivalent adjustment of $3,199 for the three months ended September 30, 2015. |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs related to a recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability, our average balance sheet for the three months ended September 30, 2015 reflects a decrease in long-term debt of $82,000. |
AVERAGE BALANCES WITH AVERAGE YIELDS AND RATES | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||
AVG | AVG | ||||||||||||||||||||
AVG | YIELD/ | AVG | YIELD/ | ||||||||||||||||||
BALANCE | INTEREST | RATE | BALANCE | INTEREST | RATE | ||||||||||||||||
ASSETS | |||||||||||||||||||||
INTEREST EARNING ASSETS: | |||||||||||||||||||||
Loans (1) (2) | $ | 2,432,652 | $ | 82,818 | 4.55 | % | $ | 2,192,804 | $ | 74,606 | 4.55 | % | |||||||||
Loans Held For Sale | 5,100 | 126 | 3.30 | % | 3,675 | 125 | 4.55 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment Securities (Taxable) (4) | 41,708 | 572 | 1.83 | % | 74,169 | 1,171 | 2.11 | % | |||||||||||||
Investment Securities (Tax-Exempt) (3) (4) | 661,430 | 26,041 | 5.26 | % | 637,110 | 26,336 | 5.53 | % | |||||||||||||
Mortgage-backed Securities (4) | 1,465,923 | 28,156 | 2.57 | % | 1,411,553 | 24,446 | 2.32 | % | |||||||||||||
Total Securities | 2,169,061 | 54,769 | 3.37 | % | 2,122,832 | 51,953 | 3.27 | % | |||||||||||||
FHLB stock and other investments, at cost | 54,051 | 588 | 1.45 | % | 44,204 | 223 | 0.67 | % | |||||||||||||
Interest Earning Deposits | 55,378 | 220 | 0.53 | % | 41,348 | 78 | 0.25 | % | |||||||||||||
Total Interest Earning Assets | 4,716,242 | 138,521 | 3.92 | % | 4,404,863 | 126,985 | 3.85 | % | |||||||||||||
NONINTEREST EARNING ASSETS: | |||||||||||||||||||||
Cash and Due From Banks | 50,738 | 52,108 | |||||||||||||||||||
Bank Premises and Equipment | 107,699 | 111,341 | |||||||||||||||||||
Other Assets | 270,301 | 268,105 | |||||||||||||||||||
Less: Allowance for Loan Losses | (19,136 | ) | (15,914 | ) | |||||||||||||||||
Total Assets | $ | 5,125,844 | $ | 4,820,503 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
INTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Savings Deposits | $ | 242,852 | 204 | 0.11 | % | $ | 232,326 | 172 | 0.10 | % | |||||||||||
Time Deposits | 946,986 | 5,723 | 0.81 | % | 850,175 | 4,035 | 0.63 | % | |||||||||||||
Interest Bearing Demand Deposits | 1,693,135 | 4,448 | 0.35 | % | 1,666,718 | 3,300 | 0.26 | % | |||||||||||||
Total Interest Bearing Deposits | 2,882,973 | 10,375 | 0.48 | % | 2,749,219 | 7,507 | 0.37 | % | |||||||||||||
Short-term Interest Bearing Liabilities | 469,831 | 2,724 | 0.77 | % | 301,689 | 650 | 0.29 | % | |||||||||||||
Long-term Interest Bearing Liabilities – FHLB Dallas | 510,392 | 5,770 | 1.51 | % | 557,519 | 5,349 | 1.28 | % | |||||||||||||
Subordinated Notes (5) | 4,305 | 189 | 5.86 | % | — | — | — | % | |||||||||||||
Long-term Debt (6) | 60,233 | 1,251 | 2.77 | % | 60,228 | 1,085 | 2.41 | % | |||||||||||||
Total Interest Bearing Liabilities | 3,927,734 | 20,309 | 0.69 | % | 3,668,655 | 14,591 | 0.53 | % | |||||||||||||
NONINTEREST BEARING LIABILITIES: | |||||||||||||||||||||
Demand Deposits | 685,982 | 676,911 | |||||||||||||||||||
Other Liabilities | 48,120 | 39,764 | |||||||||||||||||||
Total Liabilities | 4,661,836 | 4,385,330 | |||||||||||||||||||
SHAREHOLDERS’ EQUITY | 464,008 | 435,173 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,125,844 | $ | 4,820,503 | |||||||||||||||||
NET INTEREST INCOME | $ | 118,212 | $ | 112,394 | |||||||||||||||||
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | 3.35 | % | 3.41 | % | |||||||||||||||||
NET INTEREST SPREAD | 3.23 | % | 3.32 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | Interest income includes taxable-equivalent adjustments of $3,206 and $3,141 for the nine months ended September 30, 2016 and 2015, respectively. |
(3) | Interest income includes taxable-equivalent adjustments of $10,082 and $9,276 for the nine months ended September 30, 2016 and 2015, respectively. |
(4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(5) | The unamortized debt issuance costs deducted from the carrying amount of the subordinated notes totaled approximately $74,000 for the nine months ended September 30, 2016. |
(6) | Represents issuance of junior subordinated debentures. In connection with the adoption of ASU 2015-03 that requires unamortized debt issuance costs related to a recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability, our average balance sheets for the nine months ended September 30, 2016 and 2015 reflect a decrease in long-term debt of $78,000 and $83,000, respectively. |