West Virginia | 55-0619957 |
(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
x | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c)) |
City Holding Company | |
By: | /s/ David L. Bumgarner |
David L. Bumgarner | |
Chief Financial Officer |
Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Earnings | |||||||||||||||
Net Interest Income (FTE) | $ | 40,274 | $ | 36,625 | $ | 35,745 | $ | 33,760 | $ | 32,834 | |||||
Net Income available to common shareholders | 21,619 | 10,713 | 20,692 | 20,979 | 17,616 | ||||||||||
Per Share Data | |||||||||||||||
Earnings per share available to common shareholders: | |||||||||||||||
Basic | $ | 1.31 | $ | 0.68 | $ | 1.34 | $ | 1.36 | $ | 1.13 | |||||
Diluted | 1.30 | 0.68 | 1.33 | 1.35 | 1.13 | ||||||||||
Weighted average number of shares: | |||||||||||||||
Basic | 16,411 | 15,603 | 15,340 | 15,326 | 15,414 | ||||||||||
Diluted | 16,429 | 15,618 | 15,358 | 15,345 | 15,436 | ||||||||||
Period-end number of shares | 16,484 | 16,555 | 15,449 | 15,452 | 15,439 | ||||||||||
Cash dividends declared | $ | 0.53 | $ | 0.53 | $ | 0.53 | $ | 0.46 | $ | 0.46 | |||||
Book value per share (period-end) | 37.57 | 36.29 | 33.14 | 32.60 | 31.86 | ||||||||||
Tangible book value per share (period-end) | 30.18 | 28.87 | 28.08 | 27.53 | 26.78 | ||||||||||
Market data: | |||||||||||||||
High closing price | $ | 80.21 | $ | 77.94 | $ | 82.79 | $ | 78.44 | $ | 72.87 | |||||
Low closing price | 67.58 | 66.36 | 75.54 | 67.95 | 65.03 | ||||||||||
Period-end closing price | 76.19 | 67.59 | 76.80 | 75.23 | 68.56 | ||||||||||
Average daily volume | 54 | 66 | 54 | 60 | 56 | ||||||||||
Treasury share activity: | |||||||||||||||
Treasury shares repurchased | 55 | 69 | 7 | 10 | 204 | ||||||||||
Average treasury share repurchase price | $ | 74.69 | $ | 72.89 | $ | 77.18 | $ | 69.26 | $ | 68.50 | |||||
Key Ratios (percent) | |||||||||||||||
Return on average assets | 1.76 | % | 0.96 | % | 1.90 | % | 2.00 | % | 1.69 | % | |||||
Return on average tangible equity | 17.7 | % | 9.6 | % | 18.9 | % | 19.9 | % | 16.7 | % | |||||
Yield on interest earning assets | 4.46 | % | 4.32 | % | 4.25 | % | 4.15 | % | 4.05 | % | |||||
Cost of interest bearing liabilities | 1.04 | % | 1.00 | % | 0.92 | % | 0.76 | % | 0.69 | % | |||||
Net Interest Margin | 3.66 | % | 3.55 | % | 3.54 | % | 3.52 | % | 3.51 | % | |||||
Non-interest income as a percent of total revenue | 28.3 | % | 28.8 | % | 30.7 | % | 31.7 | % | 30.7 | % | |||||
Efficiency Ratio | 51.2 | % | 47.6 | % | 48.3 | % | 50.7 | % | 52.7 | % | |||||
Price/Earnings Ratio (a) | 14.58 | 24.82 | 14.37 | 13.88 | 15.17 | ||||||||||
Capital (period-end) | |||||||||||||||
Average Shareholders' Equity to Average Assets | 12.49 | % | 12.05 | % | 11.81 | % | 11.88 | % | 12.05 | % | |||||
Tangible equity to tangible assets | 10.37 | % | 10.01 | % | 9.99 | % | 9.90 | % | 10.03 | % | |||||
Consolidated City Holding Company risk based capital ratios (b): | |||||||||||||||
CET I | 15.55 | % | 15.07 | % | 15.94 | % | 15.49 | % | 15.08 | % | |||||
Tier I | 15.67 | % | 15.20 | % | 16.49 | % | 16.05 | % | 15.64 | % | |||||
Total | 16.13 | % | 15.69 | % | 17.08 | % | 16.65 | % | 16.31 | % | |||||
Leverage | 10.62 | % | 11.36 | % | 11.01 | % | 11.13 | % | 10.90 | % | |||||
City National Bank risk based capital ratios (b): | |||||||||||||||
CET I | 13.89 | % | 13.05 | % | 14.00 | % | 13.26 | % | 12.59 | % | |||||
Tier I | 13.89 | % | 13.05 | % | 14.00 | % | 13.26 | % | 12.59 | % | |||||
Total | 14.36 | % | 13.55 | % | 14.59 | % | 13.87 | % | 13.25 | % | |||||
Leverage | 9.45 | % | 9.81 | % | 9.39 | % | 9.24 | % | 8.81 | % | |||||
Other | |||||||||||||||
Branches | 97 | 100 | 87 | 86 | 86 | ||||||||||
FTE | 927 | 939 | 846 | 849 | 832 | ||||||||||
Assets per FTE | $ | 5,305 | $ | 5,498 | $ | 5,226 | $ | 5,152 | $ | 5,048 | |||||
Deposits per FTE | 4,361 | 4,462 | 4,070 | 4,030 | 4,143 | ||||||||||
(a) The price/earnings ratio is computed based on annualized quarterly earnings. | |||||||||||||||
(b) March 31, 2019 risk-based capital ratios are estimated. |
Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Interest Income | |||||||||||||||
Interest and fees on loans | $ | 42,279 | $ | 37,973 | $ | 36,872 | $ | 34,292 | $ | 32,918 | |||||
Interest on investment securities: | |||||||||||||||
Taxable | 5,689 | 5,023 | 4,216 | 4,117 | 3,981 | ||||||||||
Tax-exempt | 779 | 729 | 701 | 710 | 703 | ||||||||||
Interest on deposits in depository institutions | 186 | 623 | 940 | 61 | 42 | ||||||||||
Total Interest Income | 48,933 | 44,348 | 42,729 | 39,180 | 37,644 | ||||||||||
Interest Expense | |||||||||||||||
Interest on deposits | 7,767 | 6,656 | 5,497 | 4,918 | 4,326 | ||||||||||
Interest on short-term borrowings | 1,052 | 1,061 | 1,435 | 459 | 460 | ||||||||||
Interest on long-term debt | 48 | 200 | 239 | 230 | 211 | ||||||||||
Total Interest Expense | 8,867 | 7,917 | 7,171 | 5,607 | 4,997 | ||||||||||
Net Interest Income | 40,066 | 36,431 | 35,558 | 33,573 | 32,647 | ||||||||||
(Recovery of) provision for loan losses | (849 | ) | (400 | ) | (27 | ) | (2,064 | ) | 181 | ||||||
Net Interest Income After (Recovery of) Provision for Loan Losses | 40,915 | 36,831 | 35,585 | 35,637 | 32,466 | ||||||||||
Non-Interest Income | |||||||||||||||
Net gains on sale of investment securities | 88 | — | — | — | — | ||||||||||
Unrealized gains (losses) recognized on securities still held | 75 | (1,246 | ) | 384 | 492 | 280 | |||||||||
Service charges | 7,321 | 7,921 | 7,598 | 7,323 | 6,862 | ||||||||||
Bankcard revenue | 4,969 | 4,826 | 4,677 | 4,532 | 4,334 | ||||||||||
Trust and investment management fee income | 1,642 | 1,737 | 1,579 | 1,645 | 1,568 | ||||||||||
Bank owned life insurance | 1,016 | 734 | 813 | 722 | 821 | ||||||||||
Other income | 814 | 734 | 702 | 897 | 627 | ||||||||||
Total Non-Interest Income | 15,925 | 14,706 | 15,753 | 15,611 | 14,492 | ||||||||||
Non-Interest Expense | |||||||||||||||
Salaries and employee benefits | 15,243 | 14,017 | 13,576 | 13,551 | 13,241 | ||||||||||
Occupancy related expense | 2,732 | 2,250 | 2,323 | 2,346 | 2,404 | ||||||||||
Equipment and software related expense | 2,191 | 2,038 | 1,965 | 1,895 | 1,831 | ||||||||||
FDIC insurance expense | 291 | 308 | 315 | 313 | 315 | ||||||||||
Advertising | 869 | 530 | 808 | 849 | 787 | ||||||||||
Bankcard expenses | 1,182 | 1,229 | 1,134 | 1,064 | 1,076 | ||||||||||
Postage, delivery, and statement mailings | 624 | 527 | 537 | 515 | 578 | ||||||||||
Office supplies | 386 | 313 | 364 | 329 | 313 | ||||||||||
Legal and professional fees | 521 | 469 | 453 | 475 | 450 | ||||||||||
Telecommunications | 726 | 401 | 408 | 441 | 500 |
Repossessed asset losses, net of expenses | 216 | 207 | 156 | 112 | 370 | ||||||||||
Merger related expenses | 250 | 13,015 | 242 | — | — | ||||||||||
Other expenses | 4,180 | 2,874 | 2,759 | 3,021 | 3,072 | ||||||||||
Total Non-Interest Expense | 29,411 | 38,178 | 25,040 | 24,911 | 24,937 | ||||||||||
Income Before Income Taxes | 27,429 | 13,359 | 26,298 | 26,337 | 22,021 | ||||||||||
Income tax expense | 5,810 | 2,646 | 5,606 | 5,358 | 4,405 | ||||||||||
Net Income Available to Common Shareholders | $ | 21,619 | $ | 10,713 | $ | 20,692 | $ | 20,979 | $ | 17,616 | |||||
Distributed earnings allocated to common shareholders | $ | 8,661 | $ | 8,695 | $ | 8,109 | $ | 7,039 | $ | 7,023 | |||||
Undistributed earnings allocated to common shareholders | 12,772 | 1,928 | 12,382 | 13,729 | 10,398 | ||||||||||
Net earnings allocated to common shareholders | $ | 21,433 | $ | 10,623 | $ | 20,491 | $ | 20,768 | $ | 17,421 | |||||
Average common shares outstanding | 16,411 | 15,603 | 15,340 | 15,326 | 15,414 | ||||||||||
Shares for diluted earnings per share | 16,429 | 15,618 | 15,358 | 15,345 | 15,436 | ||||||||||
Basic earnings per common share | $ | 1.31 | $ | 0.68 | $ | 1.34 | $ | 1.36 | $ | 1.13 | |||||
Diluted earnings per common share | $ | 1.30 | $ | 0.68 | $ | 1.33 | $ | 1.35 | $ | 1.13 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 50,522 | $ | 55,016 | $ | 49,806 | $ | 43,466 | $ | 39,340 | |||||
Interest-bearing deposits in depository institutions | 93,328 | 67,975 | 256,104 | 222,058 | 84,438 | ||||||||||
Cash and cash equivalents | 143,850 | 122,991 | 305,910 | 265,524 | 123,778 | ||||||||||
Investment securities available-for-sale, at fair value | 755,081 | 723,254 | 563,003 | 552,603 | 545,628 | ||||||||||
Investment securities held-to-maturity, at amortized cost | 55,326 | 60,827 | 57,812 | 60,030 | 62,277 | ||||||||||
Other securities | 26,182 | 28,810 | 28,875 | 28,920 | 22,165 | ||||||||||
Total investment securities | 836,589 | 812,891 | 649,690 | 641,553 | 630,070 | ||||||||||
Gross loans | 3,559,322 | 3,587,608 | 3,146,697 | 3,155,468 | 3,137,681 | ||||||||||
Allowance for loan losses | (14,646 | ) | (15,966 | ) | (16,311 | ) | (16,876 | ) | (18,381 | ) | |||||
Net loans | 3,544,676 | 3,571,642 | 3,130,386 | 3,138,592 | 3,119,300 | ||||||||||
Bank owned life insurance | 114,256 | 113,544 | 105,372 | 104,773 | 104,052 | ||||||||||
Premises and equipment, net | 78,747 | 78,383 | 72,484 | 72,482 | 72,920 | ||||||||||
Accrued interest receivable | 13,657 | 12,424 | 11,449 | 9,348 | 9,528 | ||||||||||
Net deferred tax assets | 12,734 | 17,338 | 15,653 | 14,528 | 14,467 | ||||||||||
Intangible assets | 121,790 | 122,848 | 78,215 | 78,342 | 78,468 | ||||||||||
Other assets | 51,309 | 46,951 | 51,643 | 49,241 | 47,432 | ||||||||||
Total Assets | $ | 4,917,608 | $ | 4,899,012 | $ | 4,420,802 | $ | 4,374,383 | $ | 4,200,015 | |||||
Liabilities | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing | $ | 793,633 | $ | 789,119 | $ | 672,042 | $ | 684,614 | $ | 703,209 | |||||
Interest-bearing: | |||||||||||||||
Demand deposits | 879,279 | 899,568 | 802,490 | 785,933 | 816,976 | ||||||||||
Savings deposits | 988,182 | 934,218 | 821,390 | 817,547 | 816,245 | ||||||||||
Time deposits | 1,381,913 | 1,352,654 | 1,147,709 | 1,133,684 | 1,110,532 | ||||||||||
Total deposits | 4,043,007 | 3,975,559 | 3,443,631 | 3,421,778 | 3,446,962 | ||||||||||
Short-term borrowings | |||||||||||||||
Federal Funds purchased | — | 40,000 | 170,000 | 181,375 | — | ||||||||||
Customer repurchase agreements | 194,683 | 221,911 | 220,124 | 196,635 | 195,375 | ||||||||||
Long-term debt | 4,053 | 4,053 | 16,495 | 16,495 | 16,495 | ||||||||||
Other liabilities | 56,624 | 56,725 | 58,526 | 54,346 | 49,306 | ||||||||||
Total Liabilities | 4,298,367 | 4,298,248 | 3,908,776 | 3,870,629 | 3,708,138 | ||||||||||
Stockholders' Equity | |||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||
Common stock | 47,619 | 47,619 | 47,619 | 47,619 | 47,619 | ||||||||||
Capital surplus | 170,215 | 169,555 | 140,450 | 140,091 | 140,547 | ||||||||||
Retained earnings | 498,847 | 485,967 | 484,017 | 471,515 | 457,650 | ||||||||||
Cost of common stock in treasury | (91,589 | ) | (87,895 | ) | (136,783 | ) | (136,520 | ) | (137,420 | ) | |||||
Accumulated other comprehensive loss: | |||||||||||||||
Unrealized gain (loss) on securities available-for-sale | 20 | (8,611 | ) | (18,244 | ) | (13,918 | ) | (11,486 | ) | ||||||
Underfunded pension liability | (5,871 | ) | (5,871 | ) | (5,033 | ) | (5,033 | ) | (5,033 | ) | |||||
Total Accumulated Other Comprehensive Loss | (5,851 | ) | (14,482 | ) | (23,277 | ) | (18,951 | ) | (16,519 | ) | |||||
Total Stockholders' Equity | 619,241 | 600,764 | 512,026 | 503,754 | 491,877 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,917,608 | $ | 4,899,012 | $ | 4,420,802 | $ | 4,374,383 | $ | 4,200,015 | |||||
Regulatory Capital | |||||||||||||||
Total CET 1 capital | $ | 504,148 | $ | 492,526 | $ | 457,580 | $ | 444,869 | $ | 430,044 | |||||
Total tier 1 capital | 508,148 | 496,526 | 473,580 | 460,869 | 446,044 | ||||||||||
Total risk-based capital | 523,053 | 512,801 | 490,307 | 478,255 | 464,936 | ||||||||||
Total risk-weighted assets | 3,241,989 | 3,267,357 | 2,871,241 | 2,871,561 | 2,851,330 |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Residential real estate (1) | $ | 1,625,647 | $ | 1,635,338 | $ | 1,485,823 | $ | 1,472,916 | $ | 1,465,215 | |||||
Home equity - junior liens | 152,251 | 153,496 | 143,540 | 139,245 | 138,477 | ||||||||||
Commercial and industrial | 289,327 | 286,314 | 213,815 | 213,687 | 204,592 | ||||||||||
Commercial real estate (2) | 1,436,190 | 1,454,942 | 1,268,052 | 1,294,489 | 1,296,304 | ||||||||||
Consumer | 52,483 | 51,190 | 31,869 | 31,137 | 29,570 | ||||||||||
DDA overdrafts | 3,424 | 6,328 | 3,598 | 3,994 | 3,523 | ||||||||||
Gross Loans | $ | 3,559,322 | $ | 3,587,608 | $ | 3,146,697 | $ | 3,155,468 | $ | 3,137,681 | |||||
Construction loans included in: | |||||||||||||||
(1) - Residential real estate loans | $ | 22,635 | $ | 21,834 | $ | 17,628 | $ | 21,662 | $ | 26,610 | |||||
(2) - Commercial real estate loans | 56,282 | 37,869 | 24,110 | 28,567 | 30,857 |
Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Allowance for Loan Losses | |||||||||||||||
Balance at beginning of period | $ | 15,966 | $ | 16,311 | $ | 16,876 | $ | 18,381 | $ | 18,836 | |||||
Charge-offs: | |||||||||||||||
Commercial and industrial | — | (9 | ) | — | (385 | ) | (339 | ) | |||||||
Commercial real estate | (45 | ) | (20 | ) | (74 | ) | (118 | ) | (157 | ) | |||||
Residential real estate | (328 | ) | (218 | ) | (244 | ) | (96 | ) | (124 | ) | |||||
Home equity | (46 | ) | — | (108 | ) | (33 | ) | (78 | ) | ||||||
Consumer | (185 | ) | (209 | ) | (206 | ) | (255 | ) | (99 | ) | |||||
DDA overdrafts | (625 | ) | (725 | ) | (704 | ) | (636 | ) | (636 | ) | |||||
Total charge-offs | (1,229 | ) | (1,181 | ) | (1,336 | ) | (1,523 | ) | (1,433 | ) | |||||
Recoveries: | |||||||||||||||
Commercial and industrial | 135 | 528 | 147 | 1,476 | 2 | ||||||||||
Commercial real estate | 32 | 194 | 166 | 149 | 223 | ||||||||||
Residential real estate | 75 | 92 | 116 | 53 | 106 | ||||||||||
Home equity | — | — | — | — | — | ||||||||||
Consumer | 97 | 36 | 25 | 59 | 46 | ||||||||||
DDA overdrafts | 419 | 386 | 344 | 345 | 420 | ||||||||||
Total recoveries | 758 | 1,236 | 798 | 2,082 | 797 | ||||||||||
Net charge-offs | (471 | ) | 55 | (538 | ) | 559 | (636 | ) | |||||||
(Recovery of) provision for loan losses | (849 | ) | (400 | ) | (27 | ) | (2,064 | ) | 181 | ||||||
Balance at end of period | $ | 14,646 | $ | 15,966 | $ | 16,311 | $ | 16,876 | $ | 18,381 | |||||
Loans outstanding | $ | 3,559,322 | $ | 3,587,608 | $ | 3,146,697 | $ | 3,155,468 | $ | 3,137,681 | |||||
Allowance as a percent of loans outstanding | 0.41 | % | 0.45 | % | 0.52 | % | 0.53 | % | 0.59 | % | |||||
Allowance as a percent of non-performing loans | 119.9 | % | 107.8 | % | 142.1 | % | 127.6 | % | 189.9 | % | |||||
Average loans outstanding | $ | 3,576,984 | $ | 3,252,939 | $ | 3,149,320 | $ | 3,138,146 | $ | 3,133,804 | |||||
Net charge-offs (annualized) as a percent of average loans outstanding | 0.05 | % | (0.01 | )% | 0.07 | % | (0.07 | )% | 0.08 | % |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Nonaccrual Loans | |||||||||||||||
Residential real estate | $ | 3,263 | $ | 4,275 | $ | 3,029 | $ | 3,783 | $ | 3,331 | |||||
Home equity | 41 | 138 | — | 168 | 135 | ||||||||||
Commercial and industrial | 1,526 | 1,676 | 818 | 863 | 1,063 | ||||||||||
Commercial real estate | 7,282 | 8,461 | 7,599 | 7,707 | 5,061 | ||||||||||
Consumer | 1 | 1 | 1 | 557 | — | ||||||||||
Total nonaccrual loans | 12,113 | 14,551 | 11,447 | 13,078 | 9,590 | ||||||||||
Accruing loans past due 90 days or more | 106 | 257 | 35 | 145 | 91 | ||||||||||
Total non-performing loans | 12,219 | 14,808 | 11,482 | 13,223 | 9,681 | ||||||||||
Other real estate owned | 3,186 | 4,608 | 4,259 | 3,636 | 3,912 | ||||||||||
Total non-performing assets | $ | 15,405 | $ | 19,416 | $ | 15,741 | $ | 16,859 | $ | 13,593 | |||||
Non-performing assets as a percent of loans and other real estate owned | 0.43 | % | 0.54 | % | 0.50 | % | 0.53 | % | 0.43 | % | |||||
Past Due Loans | |||||||||||||||
Residential real estate | $ | 7,972 | $ | 9,991 | $ | 4,657 | $ | 5,998 | $ | 5,641 | |||||
Home equity | 720 | 1,275 | 468 | 583 | 616 | ||||||||||
Commercial and industrial | 101 | 497 | 187 | 624 | 61 | ||||||||||
Commercial real estate | 1,414 | 585 | 934 | 402 | 1,520 | ||||||||||
Consumer | 264 | 295 | 39 | 34 | 21 | ||||||||||
DDA overdrafts | 535 | 488 | 582 | 525 | 432 | ||||||||||
Total past due loans | $ | 11,006 | $ | 13,131 | $ | 6,867 | $ | 8,166 | $ | 8,291 | |||||
Total past due loans as a percent of loans outstanding | 0.31 | % | 0.37 | % | 0.22 | % | 0.26 | % | 0.26 | % | |||||
Troubled Debt Restructurings ("TDRs") (period-end) | |||||||||||||||
Accruing: | |||||||||||||||
Residential real estate | $ | 23,017 | $ | 22,863 | $ | 20,414 | $ | 20,424 | $ | 20,786 | |||||
Home equity | 3,013 | 3,025 | 2,941 | 3,156 | 3,015 | ||||||||||
Commercial and industrial | 89 | 98 | 108 | 119 | 125 | ||||||||||
Commercial real estate | 8,164 | 8,205 | 8,231 | 8,279 | 8,324 | ||||||||||
Consumer | — | — | — | — | — | ||||||||||
Total accruing TDRs | $ | 34,283 | $ | 34,191 | $ | 31,694 | $ | 31,978 | $ | 32,250 |
Non-Accruing | |||||||||||||||
Residential real estate | $ | 464 | $ | 658 | 175 | $ | 307 | $ | 256 | ||||||
Home equity | 5 | 5 | — | 40 | 40 | ||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||
Consumer | — | — | — | — | — | ||||||||||
Total non-accruing TDRs | $ | 469 | $ | 663 | $ | 175 | $ | 347 | $ | 296 | |||||
Total TDRs | $ | 34,752 | $ | 34,854 | $ | 31,869 | $ | 32,325 | $ | 32,546 | |||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loan portfolio (1): | ||||||||||||||||||||||||
Residential real estate (2) | $ | 1,806,233 | $ | 20,451 | 4.59 | % | $ | 1,683,388 | $ | 18,681 | 4.40 | % | $ | 1,603,911 | $ | 16,479 | 4.17 | % | ||||||
Commercial, financial, and agriculture (2) | 1,715,524 | 20,845 | 4.93 | % | 1,526,658 | 18,335 | 4.76 | % | 1,496,817 | 15,608 | 4.23 | % | ||||||||||||
Installment loans to individuals (2), (3) | 55,227 | 840 | 6.17 | % | 42,893 | 745 | 6.89 | % | 33,076 | 504 | 6.18 | % | ||||||||||||
Previously securitized loans (4) | *** | 144 | *** | *** | 212 | *** | *** | 327 | *** | |||||||||||||||
Total loans | 3,576,984 | 42,280 | 4.79 | % | 3,252,939 | 37,973 | 4.63 | % | 3,133,804 | 32,918 | 4.26 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 714,413 | 5,689 | 3.23 | % | 602,966 | 5,023 | 3.31 | % | 536,714 | 3,981 | 3.01 | % | ||||||||||||
Tax-exempt (5) | 102,375 | 986 | 3.91 | % | 92,833 | 922 | 3.94 | % | 91,722 | 890 | 3.94 | % | ||||||||||||
Total securities | 816,788 | 6,675 | 3.31 | % | 695,799 | 5,945 | 3.39 | % | 628,436 | 4,871 | 3.14 | % | ||||||||||||
Deposits in depository institutions | 72,723 | 186 | 1.04 | % | 141,246 | 623 | 1.75 | % | 29,648 | 42 | 0.57 | % | ||||||||||||
Total interest-earning assets | 4,466,495 | 49,141 | 4.46 | % | 4,089,984 | 44,541 | 4.32 | % | 3,791,888 | 37,831 | 4.05 | % | ||||||||||||
Cash and due from banks | 52,561 | 54,367 | 71,480 | |||||||||||||||||||||
Premises and equipment, net | 78,220 | 74,430 | 72,716 | |||||||||||||||||||||
Goodwill and intangible assets | 122,605 | 93,090 | 78,547 | |||||||||||||||||||||
Other assets | 195,954 | 181,249 | 167,174 | |||||||||||||||||||||
Less: Allowance for loan losses | (16,182 | ) | (16,780 | ) | (19,420 | ) | ||||||||||||||||||
Total assets | $ | 4,899,653 | $ | 4,476,340 | $ | 4,162,385 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 886,833 | $ | 933 | 0.43 | % | $ | 822,087 | $ | 787 | 0.38 | % | $ | 782,499 | $ | 357 | 0.19 | % | ||||||
Savings deposits | 947,337 | 1,066 | 0.46 | % | 846,162 | 802 | 0.38 | % | 801,504 | 341 | 0.17 | % | ||||||||||||
Time deposits (2) | 1,368,465 | 5,768 | 1.71 | % | 1,208,415 | 5,067 | 1.66 | % | 1,096,157 | 3,628 | 1.34 | % | ||||||||||||
Short-term borrowings | 237,616 | 1,052 | 1.80 | % | 263,022 | 1,060 | 1.60 | % | 236,605 | 460 | 0.79 | % | ||||||||||||
Long-term debt | 4,053 | 48 | 4.80 | % | 14,743 | 200 | 5.38 | % | 16,495 | 211 | 5.19 | % | ||||||||||||
Total interest-bearing liabilities | 3,444,304 | 8,867 | 1.04 | % | 3,154,429 | 7,916 | 1.00 | % | 2,933,260 | 4,997 | 0.69 | % | ||||||||||||
Noninterest-bearing demand deposits | 788,109 | 734,066 | 681,150 | |||||||||||||||||||||
Other liabilities | 55,372 | 48,553 | 46,426 | |||||||||||||||||||||
Stockholders' equity | 611,868 | 539,292 | 501,549 | |||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
stockholders' equity | $ | 4,899,653 | $ | 4,476,340 | $ | 4,162,385 | ||||||||||||||||||
Net interest income | $ | 40,274 | $ | 36,625 | $ | 32,834 | ||||||||||||||||||
Net yield on earning assets | 3.66 | % | 3.55 | % | 3.51 | % | ||||||||||||||||||
(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of loan fees have been included in interest income: | ||||||||||||||||||||||||
Loan fees | $ | 96 | $ | 221 | $ | 118 |
(2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions: | ||||||||||||||||||||||||
Residential real estate | $ | 32 | $ | 57 | $ | 110 | ||||||||||||||||||
Commercial, financial, and agriculture | 190 | 449 | 150 | |||||||||||||||||||||
Installment loans to individuals | (6 | ) | 2 | 10 | ||||||||||||||||||||
Time deposits | 256 | — | — | |||||||||||||||||||||
$ | 472 | $ | 508 | $ | 270 | |||||||||||||||||||
(3) Includes the Company’s consumer and DDA overdrafts loan categories. | ||||||||||||||||||||||||
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0. | ||||||||||||||||||||||||
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%. |
Three Months Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
Net Interest Income/Margin | |||||||||||||||
Net interest income ("GAAP") | $ | 40,066 | $ | 36,431 | $ | 35,558 | $ | 33,573 | $ | 32,647 | |||||
Taxable equivalent adjustment | 208 | 194 | 187 | 187 | 187 | ||||||||||
Net interest income, fully taxable equivalent | $ | 40,274 | $ | 36,625 | $ | 35,745 | $ | 33,760 | $ | 32,834 | |||||
Average interest earning assets | $ | 4,466,495 | $ | 4,089,984 | $ | 4,005,067 | $ | 3,800,435 | $ | 3,791,888 | |||||
Net Interest Margin | 3.66 | % | 3.55 | % | 3.54 | % | 3.56 | % | 3.51 | % | |||||
Accretion related to fair value adjustments | (0.05 | )% | (0.05 | )% | (0.03 | )% | (0.04 | )% | (0.03 | )% | |||||
Net Interest Margin (excluding accretion) | 3.61 | % | 3.50 | % | 3.51 | % | 3.52 | % | 3.48 | % | |||||
Tangible Equity Ratio (period end) | |||||||||||||||
Equity to assets ("GAAP") | 12.59 | % | 12.26 | % | 11.58 | % | 11.52 | % | 11.71 | % | |||||
Effect of goodwill and other intangibles, net | (2.22 | )% | (2.26 | )% | (1.59 | )% | (1.61 | )% | (1.68 | )% | |||||
Tangible common equity to tangible assets | 10.37 | % | 10.01 | % | 9.99 | % | 9.90 | % | 10.03 | % | |||||
Return on tangible equity ("GAAP") | 17.67 | % | 9.6 | % | 18.92 | % | 19.94 | % | 16.66 | % | |||||
Impact of merger related expenses | 0.16 | % | 9.23 | % | 0.29 | % | — | % | — | % | |||||
Return on tangible equity, excluding merger related expenses | 17.84 | % | 18.83 | % | 19.21 | % | 19.94 | % | 16.66 | % | |||||
Return on assets ("GAAP") | 1.76 | % | 0.96 | % | 1.90 | % | 2.00 | % | 1.69 | % | |||||
Impact of merger related expenses | 0.02 | % | 0.92 | % | 0.02 | % | — | % | — | % | |||||
Return on Assets, excluding merger related expenses | 1.78 | % | 1.88 | % | 1.92 | % | 2.00 | % | 1.69 | % | |||||
Effective Income Tax Rate | |||||||||||||||
Effective tax rate ("GAAP") | 21.20 | % | 19.80 | % | 21.30 | % | 20.30 | % | 20.00 | % | |||||
Impact of FIN 48 adjustments | — | % | 2.97 | % | — | % | — | % | — | % | |||||
Effective tax rate, excluding FIN 48 adjustments | 21.20 | % | 22.80 | % | 21.30 | % | 20.30 | % | 20.00 | % |