Texas | 0-12247 | 75-1848732 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1201 S. Beckham Avenue, 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)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Common stock, $1.25 par value per share | SBSI | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
(D) | Exhibits. The following materials are furnished as exhibits to this Current Report on Form 8-K: |
Exhibit Number | Description of Exhibit | ||
99.1 |
Southside Bancshares, Inc. | ||
Date: July 26, 2019 | By: | /s/ JULIE N. SHAMBURGER |
Julie N. Shamburger, CPA | ||
Senior Executive Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
• | Second quarter net income was $18.6 million and earnings per diluted common share were $0.55 |
• | Linked quarter loans increased $155.0 million, or 4.7%, to $3.46 billion from $3.31 billion |
• | Linked quarter net interest margin (FTE) increased 10 basis points from 3.07% to 3.17% |
• | Second quarter annualized return on average shareholders’ equity of 9.68% and return on average tangible common equity of 14.12% (1) |
• | Second quarter annualized return on average assets of 1.20% |
• | Linked quarter nonperforming assets as a percent of total assets decreased from 0.61% to 0.46% |
As of | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 77,319 | $ | 81,981 | $ | 87,375 | $ | 85,103 | $ | 78,534 | |||||||||
Interest earning deposits | 54,642 | 184,612 | 23,884 | 70,685 | 138,685 | ||||||||||||||
Federal funds sold | 560 | 3,350 | 9,460 | 18,284 | 14,850 | ||||||||||||||
Securities available for sale, at estimated fair value | 2,088,787 | 1,876,255 | 1,989,436 | 1,939,277 | 2,037,994 | ||||||||||||||
Securities held to maturity, at carrying value | 147,091 | 147,431 | 162,931 | 163,365 | 164,276 | ||||||||||||||
Total securities | 2,235,878 | 2,023,686 | 2,152,367 | 2,102,642 | 2,202,270 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 44,718 | 35,269 | 32,583 | 32,291 | 42,994 | ||||||||||||||
Loans held for sale | 1,812 | 384 | 601 | 954 | 4,566 | ||||||||||||||
Loans | 3,460,143 | 3,305,110 | 3,312,799 | 3,274,524 | 3,270,883 | ||||||||||||||
Less: Allowance for loan losses | (24,705 | ) | (24,155 | ) | (27,019 | ) | (26,092 | ) | (25,072 | ) | |||||||||
Net loans | 3,435,438 | 3,280,955 | 3,285,780 | 3,248,432 | 3,245,811 | ||||||||||||||
Premises & equipment, net | 140,105 | 138,290 | 135,972 | 133,939 | 132,578 | ||||||||||||||
Goodwill | 201,116 | 201,116 | 201,116 | 201,116 | 201,246 | ||||||||||||||
Other intangible assets, net | 15,471 | 16,600 | 17,779 | 19,009 | 20,287 | ||||||||||||||
Bank owned life insurance | 99,294 | 98,704 | 98,160 | 97,611 | 97,059 | ||||||||||||||
Other assets | 66,517 | 152,249 | 78,417 | 95,288 | 71,293 | ||||||||||||||
Total assets | $ | 6,372,870 | $ | 6,217,196 | $ | 6,123,494 | $ | 6,105,354 | $ | 6,250,173 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 1,028,861 | $ | 1,038,116 | $ | 994,680 | $ | 1,033,572 | $ | 1,038,907 | |||||||||
Interest bearing deposits | 3,450,395 | 3,529,777 | 3,430,350 | 3,519,940 | 3,469,834 | ||||||||||||||
Total deposits | 4,479,256 | 4,567,893 | 4,425,030 | 4,553,512 | 4,508,741 | ||||||||||||||
Other borrowings and Federal Home Loan Bank borrowings | 849,821 | 628,498 | 755,875 | 570,242 | 784,754 | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,490 | 98,448 | 98,407 | 98,366 | 98,326 | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,248 | 60,247 | 60,246 | 60,244 | 60,243 | ||||||||||||||
Other liabilities | 97,290 | 104,077 | 52,645 | 70,484 | 46,299 | ||||||||||||||
Total liabilities | 5,585,105 | 5,459,163 | 5,392,203 | 5,352,848 | 5,498,363 | ||||||||||||||
Shareholders' equity | 787,765 | 758,033 | 731,291 | 752,506 | 751,810 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 6,372,870 | $ | 6,217,196 | $ | 6,123,494 | $ | 6,105,354 | $ | 6,250,173 |
Three Months Ended | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Income Statement: | |||||||||||||||||||
Total interest income | $ | 60,672 | $ | 59,027 | $ | 58,022 | $ | 57,152 | $ | 56,797 | |||||||||
Total interest expense | 17,541 | 17,902 | 15,612 | 14,742 | 13,686 | ||||||||||||||
Net interest income | 43,131 | 41,125 | 42,410 | 42,410 | 43,111 | ||||||||||||||
Provision for loan losses | 2,506 | (918 | ) | 2,446 | 975 | 1,281 | |||||||||||||
Net interest income after provision for loan losses | 40,625 | 42,043 | 39,964 | 41,435 | 41,830 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Deposit services | 6,652 | 5,986 | 6,325 | 6,317 | 6,261 | ||||||||||||||
Net gain (loss) on sale of securities available for sale | 416 | 256 | 61 | (741 | ) | (332 | ) | ||||||||||||
Gain on sale of loans | 181 | 93 | 101 | 303 | 173 | ||||||||||||||
Trust fees | 1,520 | 1,541 | 1,573 | 1,568 | 1,931 | ||||||||||||||
Bank owned life insurance | 559 | 544 | 554 | 552 | 1,185 | ||||||||||||||
Brokerage services | 477 | 517 | 499 | 532 | 506 | ||||||||||||||
Other | 1,449 | 601 | 1,021 | 1,491 | 1,283 | ||||||||||||||
Total noninterest income | 11,254 | 9,538 | 10,134 | 10,022 | 11,007 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 17,891 | 18,046 | 17,823 | 17,628 | 16,633 | ||||||||||||||
Net occupancy | 3,289 | 3,175 | 3,475 | 3,396 | 3,360 | ||||||||||||||
Acquisition expense | — | — | 118 | 437 | 1,026 | ||||||||||||||
Advertising, travel & entertainment | 733 | 847 | 786 | 648 | 775 | ||||||||||||||
ATM expense | 246 | 180 | 250 | 251 | 243 | ||||||||||||||
Professional fees | 1,069 | 1,314 | 1,189 | 824 | 952 | ||||||||||||||
Software and data processing | 1,086 | 1,076 | 1,057 | 977 | 939 | ||||||||||||||
Communications | 489 | 487 | 477 | 354 | 478 | ||||||||||||||
FDIC insurance | 437 | 422 | 455 | 435 | 484 | ||||||||||||||
Amortization of intangibles | 1,129 | 1,179 | 1,228 | 1,279 | 1,328 | ||||||||||||||
Other | 3,331 | 2,901 | 3,338 | 2,733 | 3,056 | ||||||||||||||
Total noninterest expense | 29,700 | 29,627 | 30,196 | 28,962 | 29,274 | ||||||||||||||
Income before income tax expense | 22,179 | 21,954 | 19,902 | 22,495 | 23,563 | ||||||||||||||
Income tax expense | 3,569 | 3,137 | 2,521 | 2,192 | 3,360 | ||||||||||||||
Net income | $ | 18,610 | $ | 18,817 | $ | 17,381 | $ | 20,303 | $ | 20,203 | |||||||||
Common share data: | |||||||||||||||||||
Weighted-average basic shares outstanding | 33,726 | 33,697 | 34,611 | 35,114 | 35,062 | ||||||||||||||
Weighted-average diluted shares outstanding | 33,876 | 33,846 | 34,748 | 35,288 | 35,233 | ||||||||||||||
Common shares outstanding end of period | 33,749 | 33,718 | 33,725 | 35,160 | 35,084 | ||||||||||||||
Net income per common share | |||||||||||||||||||
Basic | $ | 0.55 | $ | 0.56 | $ | 0.50 | $ | 0.58 | $ | 0.58 | |||||||||
Diluted | 0.55 | 0.56 | 0.50 | 0.58 | 0.57 | ||||||||||||||
Book value per common share | 23.34 | 22.48 | 21.68 | 21.40 | 21.43 | ||||||||||||||
Tangible book value per common share (1) | 16.92 | 16.02 | 15.19 | 15.14 | 15.11 | ||||||||||||||
Cash dividends paid per common share | 0.31 | 0.30 | 0.32 | 0.30 | 0.30 | ||||||||||||||
Selected Performance Ratios: | |||||||||||||||||||
Return on average assets | 1.20 | % | 1.21 | % | 1.14 | % | 1.30 | % | 1.30 | % | |||||||||
Return on average shareholders’ equity | 9.68 | 10.35 | 9.30 | 10.61 | 10.79 | ||||||||||||||
Return on average tangible common equity (1) | 14.12 | 15.44 | 13.95 | 15.70 | 16.13 | ||||||||||||||
Average yield on earning assets (FTE) (1) | 4.42 | 4.33 | 4.32 | 4.18 | 4.15 | ||||||||||||||
Average rate on interest bearing liabilities | 1.61 | 1.62 | 1.46 | 1.36 | 1.25 | ||||||||||||||
Net interest spread (FTE) (1) | 2.81 | 2.71 | 2.86 | 2.82 | 2.90 | ||||||||||||||
Net interest margin (FTE) (1) | 3.17 | 3.07 | 3.21 | 3.14 | 3.19 | ||||||||||||||
Average earning assets to average interest bearing liabilities | 128.99 | 127.70 | 131.07 | 131.12 | 130.22 | ||||||||||||||
Noninterest expense to average total assets | 1.91 | 1.91 | 1.98 | 1.86 | 1.89 | ||||||||||||||
Efficiency ratio (FTE) (1) | 51.44 | 53.66 | 52.18 | 48.91 | 47.56 |
(1) | Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. |
Three Months Ended | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Nonperforming assets: | $ | 29,363 | $ | 38,111 | $ | 42,906 | $ | 39,638 | $ | 42,423 | |||||||||
Nonaccrual loans (1) | 16,376 | 17,691 | 35,770 | 32,526 | 35,351 | ||||||||||||||
Accruing loans past due more than 90 days (1) | — | 7,927 | — | — | 7 | ||||||||||||||
Restructured loans (2) | 11,918 | 11,490 | 5,930 | 5,699 | 5,860 | ||||||||||||||
Other real estate owned | 1,069 | 978 | 1,206 | 1,413 | 1,137 | ||||||||||||||
Repossessed assets | — | 25 | — | — | 68 | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Nonaccruing loans to total loans | 0.47 | % | 0.54 | % | 1.08 | % | 0.99 | % | 1.08 | % | |||||||||
Allowance for loan losses to nonaccruing loans | 150.86 | 136.54 | 75.54 | 80.22 | 70.92 | ||||||||||||||
Allowance for loan losses to nonperforming assets | 84.14 | 63.38 | 62.97 | 65.83 | 59.10 | ||||||||||||||
Allowance for loan losses to total loans | 0.71 | 0.73 | 0.82 | 0.80 | 0.77 | ||||||||||||||
Nonperforming assets to total assets | 0.46 | 0.61 | 0.70 | 0.65 | 0.68 | ||||||||||||||
Net charge-offs (recoveries) to average loans | 0.23 | 0.24 | 0.18 | (0.01 | ) | 0.05 | |||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 12.36 | 12.19 | 11.94 | 12.33 | 12.03 | ||||||||||||||
Common equity tier 1 capital | 14.02 | 14.38 | 14.77 | 15.90 | 15.49 | ||||||||||||||
Tier 1 risk-based capital | 15.46 | 15.88 | 16.29 | 17.43 | 17.02 | ||||||||||||||
Total risk-based capital | 18.52 | 19.06 | 19.59 | 20.75 | 20.31 | ||||||||||||||
Tier 1 leverage capital | 10.48 | 10.18 | 10.64 | 11.06 | 10.76 | ||||||||||||||
Period end tangible equity to period end tangible assets (3) | 9.28 | 9.01 | 8.68 | 9.05 | 8.80 | ||||||||||||||
Average shareholders’ equity to average total assets | 12.36 | 11.70 | 12.23 | 12.28 | 12.06 |
(1) | Excludes purchased credit impaired ("PCI") loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated. |
(2) | Includes $0.8 million, $0.7 million, $3.1 million, $3.2 million and $2.9 million in PCI loans restructured as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively. |
(3) | Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. |
Three Months Ended | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 579,565 | $ | 603,411 | $ | 507,732 | $ | 484,254 | $ | 487,286 | |||||||||
1-4 Family Residential | 782,073 | 786,198 | 794,499 | 791,274 | 791,359 | ||||||||||||||
Commercial | 1,251,248 | 1,104,378 | 1,194,118 | 1,218,714 | 1,245,936 | ||||||||||||||
Commercial Loans | 389,521 | 367,995 | 356,649 | 322,873 | 282,723 | ||||||||||||||
Municipal Loans | 357,028 | 343,026 | 353,370 | 344,792 | 345,595 | ||||||||||||||
Loans to Individuals | 100,708 | 100,102 | 106,431 | 112,617 | 117,984 | ||||||||||||||
Total Loans | $ | 3,460,143 | $ | 3,305,110 | $ | 3,312,799 | $ | 3,274,524 | $ | 3,270,883 |
Six Months Ended | |||||||
2019 | 2018 | ||||||
June 30, | June 30, | ||||||
Income Statement: | |||||||
Total interest income | $ | 119,699 | $ | 113,991 | |||
Total interest expense | 35,443 | 26,747 | |||||
Net interest income | 84,256 | 87,244 | |||||
Provision for loan losses | 1,588 | 5,016 | |||||
Net interest income after provision for loan losses | 82,668 | 82,228 | |||||
Noninterest income | |||||||
Deposit services | 12,638 | 12,440 | |||||
Net gain (loss) on sale of securities available for sale | 672 | (1,159 | ) | ||||
Gain on sale of loans | 274 | 288 | |||||
Trust fees | 3,061 | 3,691 | |||||
Bank owned life insurance | 1,103 | 1,817 | |||||
Brokerage services | 994 | 956 | |||||
Other | 2,050 | 2,584 | |||||
Total noninterest income | 20,792 | 20,617 | |||||
Noninterest expense | |||||||
Salaries and employee benefits | 35,937 | 35,192 | |||||
Net occupancy | 6,464 | 6,943 | |||||
Acquisition expense | — | 1,858 | |||||
Advertising, travel & entertainment | 1,580 | 1,460 | |||||
ATM expense | 426 | 589 | |||||
Professional fees | 2,383 | 2,022 | |||||
Software and data processing | 2,162 | 1,962 | |||||
Communications | 976 | 1,016 | |||||
FDIC insurance | 859 | 981 | |||||
Amortization of intangibles | 2,308 | 2,706 | |||||
Other | 6,232 | 6,212 | |||||
Total noninterest expense | 59,327 | 60,941 | |||||
Income before income tax expense | 44,133 | 41,904 | |||||
Income tax expense | 6,706 | 5,450 | |||||
Net income | $ | 37,427 | $ | 36,454 | |||
Common share data: | |||||||
Weighted-average basic shares outstanding | 33,711 | 35,042 | |||||
Weighted-average diluted shares outstanding | 33,862 | 35,217 | |||||
Common shares outstanding end of period | 33,749 | 35,084 | |||||
Net income per common share | |||||||
Basic | $ | 1.11 | $ | 1.04 | |||
Diluted | 1.11 | 1.04 | |||||
Book value per common share | 23.34 | 21.43 | |||||
Tangible book value per common share (1) | 16.92 | 15.11 | |||||
Cash dividends paid per common share | 0.61 | 0.58 | |||||
Selected Performance Ratios: | |||||||
Return on average assets | 1.20 | % | 1.16 | % | |||
Return on average shareholders’ equity | 10.00 | 9.77 | |||||
Return on average tangible common equity (1) | 14.75 | 14.71 | |||||
Average yield on earning assets (FTE) (1) | 4.37 | 4.12 | |||||
Average rate on interest bearing liabilities | 1.61 | 1.20 | |||||
Net interest spread (FTE) (1) | 2.76 | 2.92 | |||||
Net interest margin (FTE) (1) | 3.12 | 3.19 | |||||
Average earning assets to average interest bearing liabilities | 128.34 | 128.72 | |||||
Noninterest expense to average total assets | 1.91 | 1.94 | |||||
Efficiency ratio (FTE) (1) | 52.53 | 49.43 |
(1) | Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. |
Six Months Ended | |||||||
2019 | 2018 | ||||||
June 30, | June 30, | ||||||
Nonperforming assets: | $ | 29,363 | $ | 42,423 | |||
Nonaccrual loans (1) | 16,376 | 35,351 | |||||
Accruing loans past due more than 90 days (1) | — | 7 | |||||
Restructured loans (2) | 11,918 | 5,860 | |||||
Other real estate owned | 1,069 | 1,137 | |||||
Repossessed assets | — | 68 | |||||
Asset Quality Ratios: | |||||||
Nonaccruing loans to total loans | 0.47 | % | 1.08 | % | |||
Allowance for loan losses to nonaccruing loans | 150.86 | 70.92 | |||||
Allowance for loan losses to nonperforming assets | 84.14 | 59.10 | |||||
Allowance for loan losses to total loans | 0.71 | 0.77 | |||||
Nonperforming assets to total assets | 0.46 | 0.68 | |||||
Net charge-offs (recoveries) to average loans | 0.24 | 0.04 | |||||
Capital Ratios: | |||||||
Shareholders’ equity to total assets | 12.36 | 12.03 | |||||
Common equity tier 1 capital | 14.02 | 15.49 | |||||
Tier 1 risk-based capital | 15.46 | 17.02 | |||||
Total risk-based capital | 18.52 | 20.31 | |||||
Tier 1 leverage capital | 10.48 | 10.76 | |||||
Period end tangible equity to period end tangible assets (3) | 9.28 | 8.80 | |||||
Average shareholders’ equity to average total assets | 12.03 | 11.88 |
(1) | Excludes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated. |
(2) | Includes $0.8 million and $2.9 million in PCI loans restructured as of June 30, 2019 and June 30, 2018, respectively. |
(3) | Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. |
Three Months Ended | |||||||||||||||||||||
June 30, 2019 | March 31, 2019 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) | $ | 3,387,323 | $ | 43,559 | 5.16 | % | $ | 3,296,665 | $ | 42,210 | 5.19 | % | |||||||||
Loans held for sale | 1,965 | 21 | 4.29 | % | 611 | 7 | 4.65 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Taxable investment securities (2) | 3,000 | 27 | 3.61 | % | 3,000 | 28 | 3.79 | % | |||||||||||||
Tax-exempt investment securities (2) | 459,996 | 4,513 | 3.94 | % | 659,187 | 5,732 | 3.53 | % | |||||||||||||
Mortgage-backed and related securities (2) | 1,680,109 | 13,246 | 3.16 | % | 1,647,564 | 12,474 | 3.07 | % | |||||||||||||
Total securities | 2,143,105 | 17,786 | 3.33 | % | 2,309,751 | 18,234 | 3.20 | % | |||||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 52,311 | 440 | 3.37 | % | 53,764 | 355 | 2.68 | % | |||||||||||||
Interest earning deposits | 66,017 | 411 | 2.50 | % | 64,690 | 386 | 2.42 | % | |||||||||||||
Federal funds sold | 3,365 | 39 | 4.65 | % | 7,635 | 47 | 2.50 | % | |||||||||||||
Total earning assets | 5,654,086 | 62,256 | 4.42 | % | 5,733,116 | 61,239 | 4.33 | % | |||||||||||||
Cash and due from banks | 78,757 | 83,147 | |||||||||||||||||||
Accrued interest and other assets | 534,835 | 513,738 | |||||||||||||||||||
Less: Allowance for loan losses | (24,838 | ) | (27,060 | ) | |||||||||||||||||
Total assets | $ | 6,242,840 | $ | 6,302,941 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings accounts | $ | 365,205 | 262 | 0.29 | % | $ | 360,664 | 258 | 0.29 | % | |||||||||||
Certificates of deposits | 1,119,464 | 5,861 | 2.10 | % | 1,154,203 | 5,697 | 2.00 | % | |||||||||||||
Interest bearing demand accounts | 1,969,593 | 5,334 | 1.09 | % | 1,982,891 | 5,286 | 1.08 | % | |||||||||||||
Total interest bearing deposits | 3,454,262 | 11,457 | 1.33 | % | 3,497,758 | 11,241 | 1.30 | % | |||||||||||||
Federal Home Loan Bank borrowings | 755,748 | 3,899 | 2.07 | % | 816,389 | 4,457 | 2.21 | % | |||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,469 | 1,410 | 5.74 | % | 98,428 | 1,400 | 5.77 | % | |||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,247 | 718 | 4.78 | % | 60,246 | 729 | 4.91 | % | |||||||||||||
Other borrowings | 14,530 | 57 | 1.57 | % | 16,788 | 75 | 1.81 | % | |||||||||||||
Total interest bearing liabilities | 4,383,256 | 17,541 | 1.61 | % | 4,489,609 | 17,902 | 1.62 | % | |||||||||||||
Noninterest bearing deposits | 1,014,746 | 986,343 | |||||||||||||||||||
Accrued expenses and other liabilities | 73,494 | 89,768 | |||||||||||||||||||
Total liabilities | 5,471,496 | 5,565,720 | |||||||||||||||||||
Shareholders’ equity | 771,344 | 737,221 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,242,840 | $ | 6,302,941 | |||||||||||||||||
Net interest income (FTE) | $ | 44,715 | $ | 43,337 | |||||||||||||||||
Net interest margin (FTE) | 3.17 | % | 3.07 | % | |||||||||||||||||
Net interest spread (FTE) | 2.81 | % | 2.71 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
Three Months Ended | |||||||||||||||||||||
December 31, 2018 | September 30, 2018 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) | $ | 3,289,840 | $ | 41,320 | 4.98 | % | $ | 3,286,664 | $ | 40,396 | 4.88 | % | |||||||||
Loans held for sale | 633 | 8 | 5.01 | % | 1,841 | 25 | 5.39 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Taxable investment securities (2) | 13,066 | 103 | 3.13 | % | 4,285 | 36 | 3.33 | % | |||||||||||||
Tax-exempt investment securities (2) | 722,162 | 7,828 | 4.30 | % | 795,397 | 8,132 | 4.06 | % | |||||||||||||
Mortgage-backed and related securities (2) | 1,434,982 | 10,394 | 2.87 | % | 1,418,114 | 10,086 | 2.82 | % | |||||||||||||
Total securities | 2,170,210 | 18,325 | 3.35 | % | 2,217,796 | 18,254 | 3.27 | % | |||||||||||||
Federal Home Loan Bank stock, at cost, and equity investments | 44,304 | 393 | 3.52 | % | 54,216 | 377 | 2.76 | % | |||||||||||||
Interest earning deposits | 36,098 | 411 | 4.52 | % | 77,977 | 414 | 2.11 | % | |||||||||||||
Federal funds sold | 16,967 | 97 | 2.27 | % | 16,072 | 77 | 1.90 | % | |||||||||||||
Total earning assets | 5,558,052 | 60,554 | 4.32 | % | 5,654,566 | 59,543 | 4.18 | % | |||||||||||||
Cash and due from banks | 79,544 | 78,623 | |||||||||||||||||||
Accrued interest and other assets | 452,257 | 477,737 | |||||||||||||||||||
Less: Allowance for loan losses | (26,231 | ) | (25,646 | ) | |||||||||||||||||
Total assets | $ | 6,063,622 | $ | 6,185,280 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings accounts | $ | 361,407 | 257 | 0.28 | % | $ | 362,405 | 258 | 0.28 | % | |||||||||||
Certificates of deposit | 1,123,101 | 5,170 | 1.83 | % | 1,173,672 | 4,744 | 1.60 | % | |||||||||||||
Interest bearing demand accounts | 1,968,786 | 4,908 | 0.99 | % | 1,953,904 | 4,495 | 0.91 | % | |||||||||||||
Total interest bearing deposits | 3,453,294 | 10,335 | 1.19 | % | 3,489,981 | 9,497 | 1.08 | % | |||||||||||||
Federal Home Loan Bank borrowings | 612,134 | 3,066 | 1.99 | % | 654,153 | 3,108 | 1.88 | % | |||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,385 | 1,431 | 5.77 | % | 98,346 | 1,423 | 5.74 | % | |||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,245 | 699 | 4.60 | % | 60,244 | 684 | 4.50 | % | |||||||||||||
Other borrowings | 16,405 | 81 | 1.96 | % | 9,651 | 30 | 1.23 | % | |||||||||||||
Total interest bearing liabilities | 4,240,463 | 15,612 | 1.46 | % | 4,312,375 | 14,742 | 1.36 | % | |||||||||||||
Noninterest bearing deposits | 1,034,556 | 1,064,797 | |||||||||||||||||||
Accrued expenses and other liabilities | 47,234 | 48,699 | |||||||||||||||||||
Total liabilities | 5,322,253 | 5,425,871 | |||||||||||||||||||
Shareholders’ equity | 741,369 | 759,409 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,063,622 | $ | 6,185,280 | |||||||||||||||||
Net interest income (FTE) | $ | 44,942 | $ | 44,801 | |||||||||||||||||
Net interest margin (FTE) | 3.21 | % | 3.14 | % | |||||||||||||||||
Net interest spread (FTE) | 2.86 | % | 2.82 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
Three Months Ended | ||||||||||
June 30, 2018 | ||||||||||
Avg Balance | Interest | Avg Yield/Rate | ||||||||
ASSETS | ||||||||||
Loans (1) | $ | 3,285,756 | $ | 39,865 | 4.87 | % | ||||
Loans held for sale | 1,794 | 19 | 4.25 | % | ||||||
Securities: | ||||||||||
Taxable investment securities (2) | 6,891 | 51 | 2.97 | % | ||||||
Tax-exempt investment securities (2) | 802,611 | 8,004 | 4.00 | % | ||||||
Mortgage-backed and related securities (2) | 1,439,810 | 10,210 | 2.84 | % | ||||||
Total securities | 2,249,312 | 18,265 | 3.26 | % | ||||||
Federal Home Loan Bank stock, at cost, and equity investments | 54,729 | 411 | 3.01 | % | ||||||
Interest earning deposits | 92,291 | 400 | 1.74 | % | ||||||
Federal funds sold | 16,251 | 71 | 1.75 | % | ||||||
Total earning assets | 5,700,133 | 59,031 | 4.15 | % | ||||||
Cash and due from banks | 75,560 | |||||||||
Accrued interest and other assets | 473,142 | |||||||||
Less: Allowance for loan losses | (24,558 | ) | ||||||||
Total assets | $ | 6,224,277 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Savings accounts | $ | 360,340 | 208 | 0.23 | % | |||||
Certificates of deposit | 1,175,230 | 4,303 | 1.47 | % | ||||||
Interest bearing demand accounts | 1,981,427 | 4,070 | 0.82 | % | ||||||
Total interest bearing deposits | 3,516,997 | 8,581 | 0.98 | % | ||||||
Federal Home Loan Bank borrowings | 692,386 | 3,007 | 1.74 | % | ||||||
Subordinated notes, net of unamortized debt issuance costs | 98,306 | 1,407 | 5.74 | % | ||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,243 | 658 | 4.38 | % | ||||||
Other borrowings | 9,283 | 33 | 1.43 | % | ||||||
Total interest bearing liabilities | 4,377,215 | 13,686 | 1.25 | % | ||||||
Noninterest bearing deposits | 1,045,298 | |||||||||
Accrued expenses and other liabilities | 50,843 | |||||||||
Total liabilities | 5,473,356 | |||||||||
Shareholders’ equity | 750,921 | |||||||||
Total liabilities and shareholders’ equity | $ | 6,224,277 | ||||||||
Net interest income (FTE) | $ | 45,345 | ||||||||
Net interest margin (FTE) | 3.19 | % | ||||||||
Net interest spread (FTE) | 2.90 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
Six Months Ended | |||||||||||||||||||||
June 30, 2019 | June 30, 2018 | ||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Loans (1) | $ | 3,342,244 | $ | 85,769 | 5.17 | % | $ | 3,293,090 | $ | 79,266 | 4.85 | % | |||||||||
Loans held for sale | 1,292 | 28 | 4.37 | % | 1,669 | 30 | 3.62 | % | |||||||||||||
Securities: | |||||||||||||||||||||
Investment securities (taxable) (2) | 3,000 | 55 | 3.70 | % | 23,022 | 278 | 2.44 | % | |||||||||||||
Investment securities (tax-exempt) (2) | 559,041 | 10,245 | 3.70 | % | 803,844 | 16,004 | 4.01 | % | |||||||||||||
Mortgage-backed and related securities (2) | 1,663,926 | 25,720 | 3.12 | % | 1,498,151 | 21,104 | 2.84 | % | |||||||||||||
Total securities | 2,225,967 | 36,020 | 3.26 | % | 2,325,017 | 37,386 | 3.24 | % | |||||||||||||
Federal Home Loan Bank stock, at cost, and other investments | 53,034 | 795 | 3.02 | % | 60,831 | 825 | 2.73 | % | |||||||||||||
Interest earning deposits | 65,357 | 797 | 2.46 | % | 99,848 | 799 | 1.61 | % | |||||||||||||
Federal funds sold | 5,489 | 86 | 3.16 | % | 14,759 | 120 | 1.64 | % | |||||||||||||
Total earning assets | 5,693,383 | 123,495 | 4.37 | % | 5,795,214 | 118,426 | 4.12 | % | |||||||||||||
Cash and due from banks | 80,940 | 76,789 | |||||||||||||||||||
Accrued interest and other assets | 523,926 | 483,086 | |||||||||||||||||||
Less: Allowance for loan losses | (25,943 | ) | (22,791 | ) | |||||||||||||||||
Total assets | $ | 6,272,306 | $ | 6,332,298 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Savings deposits | $ | 362,947 | 520 | 0.29 | % | $ | 357,073 | 392 | 0.22 | % | |||||||||||
Time deposits | 1,136,738 | 11,558 | 2.05 | % | 1,172,658 | 8,198 | 1.41 | % | |||||||||||||
Interest bearing demand deposits | 1,976,205 | 10,620 | 1.08 | % | 1,995,214 | 7,442 | 0.75 | % | |||||||||||||
Total interest bearing deposits | 3,475,890 | 22,698 | 1.32 | % | 3,524,945 | 16,032 | 0.92 | % | |||||||||||||
Federal Home Loan Bank borrowings | 785,901 | 8,356 | 2.14 | % | 809,879 | 6,639 | 1.65 | % | |||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,448 | 2,810 | 5.76 | % | 98,287 | 2,805 | 5.76 | % | |||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,247 | 1,447 | 4.84 | % | 60,242 | 1,227 | 4.11 | % | |||||||||||||
Other borrowings | 15,653 | 132 | 1.70 | % | 8,696 | 44 | 1.02 | % | |||||||||||||
Total interest bearing liabilities | 4,436,139 | 35,443 | 1.61 | % | 4,502,049 | 26,747 | 1.20 | % | |||||||||||||
Noninterest bearing deposits | 1,000,623 | 1,031,065 | |||||||||||||||||||
Accrued expenses and other liabilities | 81,167 | 47,034 | |||||||||||||||||||
Total liabilities | 5,517,929 | 5,580,148 | |||||||||||||||||||
Shareholders’ equity | 754,377 | 752,150 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,272,306 | $ | 6,332,298 | |||||||||||||||||
Net interest income (FTE) | $ | 88,052 | $ | 91,679 | |||||||||||||||||
Net interest margin on average earning assets (FTE) | 3.12 | % | 3.19 | % | |||||||||||||||||
Net interest spread (FTE) | 2.76 | % | 2.92 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity: | ||||||||||||||||||||||||||||
Net income | $ | 18,610 | $ | 18,817 | $ | 17,381 | $ | 20,303 | $ | 20,203 | $ | 37,427 | $ | 36,454 | ||||||||||||||
After-tax amortization expense | 892 | 931 | 970 | 1,010 | 1,049 | 1,823 | 2,138 | |||||||||||||||||||||
Adjusted net income available to common shareholders | $ | 19,502 | $ | 19,748 | $ | 18,351 | $ | 21,313 | $ | 21,252 | $ | 39,250 | $ | 38,592 | ||||||||||||||
Average shareholders' equity | $ | 771,344 | $ | 737,221 | $ | 741,369 | $ | 759,409 | $ | 750,921 | $ | 754,377 | $ | 752,150 | ||||||||||||||
Less: Average intangibles for the period | (217,266 | ) | (218,438 | ) | (219,645 | ) | (220,956 | ) | (222,342 | ) | (217,849 | ) | (223,021 | ) | ||||||||||||||
Average tangible shareholders' equity | $ | 554,078 | $ | 518,783 | $ | 521,724 | $ | 538,453 | $ | 528,579 | $ | 536,528 | $ | 529,129 | ||||||||||||||
Return on average tangible common equity | 14.12 | % | 15.44 | % | 13.95 | % | 15.70 | % | 16.13 | % | 14.75 | % | 14.71 | % | ||||||||||||||
Reconciliation of book value per share to tangible book value per share: | ||||||||||||||||||||||||||||
Common equity at end of period | $ | 787,765 | $ | 758,033 | $ | 731,291 | $ | 752,506 | $ | 751,810 | $ | 787,765 | $ | 751,810 | ||||||||||||||
Less: Intangible assets at end of period | (216,587 | ) | (217,716 | ) | (218,895 | ) | (220,125 | ) | (221,533 | ) | (216,587 | ) | (221,533 | ) | ||||||||||||||
Tangible common shareholders' equity at end of period | $ | 571,178 | $ | 540,317 | $ | 512,396 | $ | 532,381 | $ | 530,277 | $ | 571,178 | $ | 530,277 | ||||||||||||||
Total assets at end of period | $ | 6,372,870 | $ | 6,217,196 | $ | 6,123,494 | $ | 6,105,354 | $ | 6,250,173 | $ | 6,372,870 | $ | 6,250,173 | ||||||||||||||
Less: Intangible assets at end of period | (216,587 | ) | (217,716 | ) | (218,895 | ) | (220,125 | ) | (221,533 | ) | (216,587 | ) | (221,533 | ) | ||||||||||||||
Tangible assets at end of period | $ | 6,156,283 | $ | 5,999,480 | $ | 5,904,599 | $ | 5,885,229 | $ | 6,028,640 | $ | 6,156,283 | $ | 6,028,640 | ||||||||||||||
Period end tangible equity to period end tangible assets | 9.28 | % | 9.01 | % | 8.68 | % | 9.05 | % | 8.80 | % | 9.28 | % | 8.80 | % | ||||||||||||||
Common shares outstanding end of period | 33,749 | 33,718 | 33,725 | 35,160 | 35,084 | 33,749 | 35,084 | |||||||||||||||||||||
Tangible book value per common share | $ | 16.92 | $ | 16.02 | $ | 15.19 | $ | 15.14 | $ | 15.11 | $ | 16.92 | $ | 15.11 | ||||||||||||||
Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE): | ||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 43,131 | $ | 41,125 | $ | 42,410 | $ | 42,410 | $ | 43,111 | $ | 84,256 | $ | 87,244 | ||||||||||||||
Tax equivalent adjustments: | ||||||||||||||||||||||||||||
Loans | 598 | 598 | 599 | 590 | 583 | 1,196 | 1,165 | |||||||||||||||||||||
Investment securities (tax-exempt) | 986 | 1,614 | 1,933 | 1,801 | 1,651 | 2,600 | 3,270 | |||||||||||||||||||||
Net interest income (FTE) (1) | 44,715 | 43,337 | 44,942 | 44,801 | 45,345 | 88,052 | 91,679 | |||||||||||||||||||||
Noninterest income | 11,254 | 9,538 | 10,134 | 10,022 | 11,007 | 20,792 | 20,617 | |||||||||||||||||||||
Nonrecurring income (2) | (557 | ) | 171 | (66 | ) | 741 | (304 | ) | (386 | ) | 523 | |||||||||||||||||
Total revenue | $ | 55,412 | $ | 53,046 | $ | 55,010 | $ | 55,564 | $ | 56,048 | $ | 108,458 | $ | 112,819 | ||||||||||||||
Noninterest expense | $ | 29,700 | $ | 29,627 | $ | 30,196 | $ | 28,962 | $ | 29,274 | $ | 59,327 | $ | 60,941 | ||||||||||||||
Pre-tax amortization expense | (1,129 | ) | (1,179 | ) | (1,228 | ) | (1,279 | ) | (1,328 | ) | (2,308 | ) | (2,706 | ) | ||||||||||||||
Nonrecurring expense (3) | (67 | ) | 18 | (264 | ) | (507 | ) | (1,287 | ) | (49 | ) | (2,465 | ) | |||||||||||||||
Adjusted noninterest expense | $ | 28,504 | $ | 28,466 | $ | 28,704 | $ | 27,176 | $ | 26,659 | $ | 56,970 | $ | 55,770 | ||||||||||||||
Efficiency ratio | 52.95 | % | 56.00 | % | 54.70 | % | 51.11 | % | 49.54 | % | 54.43 | % | 51.46 | % | ||||||||||||||
Efficiency ratio (FTE) (1) | 51.44 | % | 53.66 | % | 52.18 | % | 48.91 | % | 47.56 | % | 52.53 | % | 49.43 | % | ||||||||||||||
Average earning assets | $ | 5,654,086 | $ | 5,733,116 | $ | 5,558,052 | $ | 5,654,566 | $ | 5,700,133 | $ | 5,693,383 | $ | 5,795,214 | ||||||||||||||
Net interest margin | 3.06 | % | 2.91 | % | 3.03 | % | 2.98 | % | 3.03 | % | 2.98 | % | 3.04 | % | ||||||||||||||
Net interest margin (FTE) (1) | 3.17 | % | 3.07 | % | 3.21 | % | 3.14 | % | 3.19 | % | 3.12 | % | 3.19 | % | ||||||||||||||
Net interest spread | 2.69 | % | 2.56 | % | 2.68 | % | 2.65 | % | 2.75 | % | 2.63 | % | 2.77 | % | ||||||||||||||
Net interest spread (FTE) (1) | 2.81 | % | 2.71 | % | 2.86 | % | 2.82 | % | 2.90 | % | 2.76 | % | 2.92 | % |
(1) | These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. |
(2) | These adjustments may include net gain and loss on sale of securities available for sale, loss on fair value hedge, other-than-temporary impairment charges and additional bank owned life insurance income realized as a result of the death benefits for a retired covered officer, in the periods where applicable. |
(3) | These adjustments may include acquisition expenses, foreclosure expenses and branch closure expenses, in the periods where applicable. |