(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
City Holding Company | |
By: | /s/ David L. Bumgarner |
David L. Bumgarner | |
Chief Financial Officer |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
Earnings | ||||||||||||||||||||||
Net Interest Income (FTE) | $ | 40,729 | $ | 41,113 | $ | 40,274 | $ | 36,625 | $ | 35,745 | $ | 122,118 | $ | 102,339 | ||||||||
Net Income available to common shareholders | 22,371 | 22,751 | 21,619 | 10,713 | 20,692 | 66,741 | 59,283 | |||||||||||||||
Per Share Data | ||||||||||||||||||||||
Earnings per share available to common shareholders: | ||||||||||||||||||||||
Basic | $ | 1.36 | $ | 1.38 | $ | 1.31 | $ | 0.68 | $ | 1.34 | $ | 4.05 | $ | 3.82 | ||||||||
Diluted | 1.36 | 1.38 | 1.30 | 0.68 | 1.33 | 4.04 | 3.82 | |||||||||||||||
Weighted average number of shares: | ||||||||||||||||||||||
Basic | 16,271 | 16,368 | 16,411 | 15,603 | 15,340 | 16,350 | 15,360 | |||||||||||||||
Diluted | 16,289 | 16,386 | 16,429 | 15,618 | 15,358 | 16,368 | 15,380 | |||||||||||||||
Period-end number of shares | 16,302 | 16,397 | 16,484 | 16,555 | 15,449 | 16,302 | 15,449 | |||||||||||||||
Cash dividends declared | $ | 0.57 | $ | 0.53 | $ | 0.53 | $ | 0.53 | $ | 0.53 | $ | 1.63 | $ | 1.45 | ||||||||
Book value per share (period-end) | 39.85 | 38.84 | 37.57 | 36.29 | 33.14 | 39.85 | 33.14 | |||||||||||||||
Tangible book value per share (period-end) | 32.44 | 31.44 | 30.18 | 28.87 | 28.08 | 32.44 | 28.08 | |||||||||||||||
Market data: | ||||||||||||||||||||||
High closing price | $ | 78.30 | $ | 82.56 | $ | 80.21 | $ | 77.94 | $ | 82.79 | $ | 82.56 | $ | 82.79 | ||||||||
Low closing price | 72.35 | 73.05 | 67.58 | 66.36 | 75.54 | 67.58 | 65.03 | |||||||||||||||
Period-end closing price | 76.25 | 76.26 | 76.19 | 67.59 | 76.80 | 76.25 | 76.80 | |||||||||||||||
Average daily volume | 62 | 53 | 54 | 66 | 54 | 56 | 57 | |||||||||||||||
Treasury share activity: | ||||||||||||||||||||||
Treasury shares repurchased | 99 | 107 | 55 | 69 | 7 | 261 | 221 | |||||||||||||||
Average treasury share repurchase price | $ | 74.17 | $ | 74.81 | $ | 74.69 | $ | 72.89 | $ | 77.18 | $ | 74.54 | $ | 68.81 | ||||||||
Key Ratios (percent) | ||||||||||||||||||||||
Return on average assets | 1.81 | % | 1.84 | % | 1.76 | % | 0.96 | % | 1.90 | % | 1.81 | % | 1.86 | % | ||||||||
Return on average tangible equity | 17.0 | % | 17.9 | % | 17.7 | % | 9.6 | % | 18.9 | % | 17.50 | % | 18.50 | % | ||||||||
Yield on interest earning assets | 4.42 | % | 4.48 | % | 4.46 | % | 4.32 | % | 4.25 | % | 4.46 | % | 4.13 | % | ||||||||
Cost of interest bearing liabilities | 1.10 | % | 1.09 | % | 1.04 | % | 1.00 | % | 0.92 | % | 1.08 | % | 0.79 | % | ||||||||
Net Interest Margin | 3.59 | % | 3.65 | % | 3.66 | % | 3.55 | % | 3.54 | % | 3.64 | % | 3.52 | % | ||||||||
Non-interest income as a percent of total revenue | 29.2 | % | 30.3 | % | 28.3 | % | 28.8 | % | 30.7 | % | 29.3 | % | 31.1 | % | ||||||||
Efficiency Ratio | 48.2 | % | 50.5 | % | 51.2 | % | 47.6 | % | 48.3 | % | 50.2 | % | 50.5 | % | ||||||||
Price/Earnings Ratio (a) | 13.98 | 13.84 | 14.58 | 24.82 | 14.37 | 14.13 | 15.07 | |||||||||||||||
Capital (period-end) | ||||||||||||||||||||||
Average Shareholders' Equity to Average Assets | 13.12 | % | 12.76 | % | 12.49 | % | 12.05 | % | 11.81 | % | ||||||||||||
Tangible equity to tangible assets | 10.93 | % | 10.70 | % | 10.37 | % | 10.01 | % | 9.99 | % | ||||||||||||
Consolidated City Holding Company risk based capital ratios (b): | ||||||||||||||||||||||
CET I | 15.62 | % | 15.91 | % | 15.55 | % | 15.07 | % | 15.94 | % | ||||||||||||
Tier I | 15.74 | % | 16.03 | % | 15.67 | % | 15.20 | % | 16.49 | % | ||||||||||||
Total | 16.14 | % | 16.47 | % | 16.13 | % | 15.69 | % | 17.08 | % | ||||||||||||
Leverage | 10.87 | % | 10.70 | % | 10.62 | % | 11.36 | % | 11.01 | % | ||||||||||||
City National Bank risk based capital ratios (b): | ||||||||||||||||||||||
CET I | 14.00 | % | 14.19 | % | 13.89 | % | 13.05 | % | 14.00 | % | ||||||||||||
Tier I | 14.00 | % | 14.19 | % | 13.89 | % | 13.05 | % | 14.00 | % | ||||||||||||
Total | 14.40 | % | 14.63 | % | 14.36 | % | 13.55 | % | 14.59 | % | ||||||||||||
Leverage | 9.72 | % | 9.51 | % | 9.45 | % | 9.81 | % | 9.39 | % | ||||||||||||
Other | ||||||||||||||||||||||
Branches | 95 | 95 | 97 | 100 | 87 | |||||||||||||||||
FTE | 916 | 935 | 927 | 939 | 846 | |||||||||||||||||
Assets per FTE | $ | 5,412 | $ | 5,284 | $ | 5,305 | $ | 5,498 | $ | 5,226 | ||||||||||||
Deposits per FTE | 4,399 | 4,312 | 4,361 | 4,462 | 4,070 | |||||||||||||||||
(a) The price/earnings ratio is computed based on annualized quarterly earnings. | ||||||||||||||||||||||
(b) September 30, 2019 risk-based capital ratios are estimated. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
Interest Income | ||||||||||||||||||||||
Interest and fees on loans | $ | 42,944 | $ | 43,174 | $ | 42,279 | $ | 37,973 | $ | 36,872 | $ | 128,397 | $ | 104,082 | ||||||||
Interest on investment securities: | ||||||||||||||||||||||
Taxable | 6,044 | 5,732 | 5,689 | 5,023 | 4,216 | 17,465 | 12,314 | |||||||||||||||
Tax-exempt | 722 | 755 | 779 | 729 | 701 | 2,257 | 2,114 | |||||||||||||||
Interest on deposits in depository institutions | 271 | 577 | 186 | 623 | 940 | 1,034 | 1,043 | |||||||||||||||
Total Interest Income | 49,981 | 50,238 | 48,933 | 44,348 | 42,729 | 149,153 | 119,553 | |||||||||||||||
Interest Expense | ||||||||||||||||||||||
Interest on deposits | 8,585 | 8,417 | 7,767 | 6,656 | 5,497 | 24,768 | 14,741 | |||||||||||||||
Interest on short-term borrowings | 814 | 863 | 1,052 | 1,061 | 1,435 | 2,729 | 2,354 | |||||||||||||||
Interest on long-term debt | 45 | 47 | 48 | 200 | 239 | 140 | 680 | |||||||||||||||
Total Interest Expense | 9,444 | 9,327 | 8,867 | 7,917 | 7,171 | 27,637 | 17,775 | |||||||||||||||
Net Interest Income | 40,537 | 40,911 | 40,066 | 36,431 | 35,558 | 121,516 | 101,778 | |||||||||||||||
Provision for (recovery of) loan losses | 274 | (600 | ) | (849 | ) | (400 | ) | (27 | ) | (1,175 | ) | (1,910 | ) | |||||||||
Net Interest Income After Provision for (Recovery of) Loan Losses | 40,263 | 41,511 | 40,915 | 36,831 | 35,585 | 122,691 | 103,688 | |||||||||||||||
Non-Interest Income | ||||||||||||||||||||||
Net (losses) gains on sale of investment securities | (40 | ) | 21 | 88 | — | — | 69 | — | ||||||||||||||
Unrealized (losses) gains recognized on securities still held | (214 | ) | 113 | 75 | (1,246 | ) | 384 | (27 | ) | 1,155 | ||||||||||||
Service charges | 8,183 | 7,778 | 7,321 | 7,921 | 7,598 | 23,281 | 21,783 | |||||||||||||||
Bankcard revenue | 5,440 | 5,522 | 4,969 | 4,826 | 4,677 | 15,931 | 13,543 | |||||||||||||||
Trust and investment management fee income | 1,802 | 1,699 | 1,642 | 1,737 | 1,579 | 5,144 | 4,792 | |||||||||||||||
Bank owned life insurance | 762 | 1,132 | 1,016 | 734 | 813 | 2,910 | 2,356 | |||||||||||||||
Other income | 765 | 1,560 | 814 | 734 | 702 | 3,139 | 2,227 | |||||||||||||||
Total Non-Interest Income | 16,698 | 17,825 | 15,925 | 14,706 | 15,753 | 50,447 | 45,856 | |||||||||||||||
Non-Interest Expense | ||||||||||||||||||||||
Salaries and employee benefits | 15,210 | 15,767 | 15,243 | 14,017 | 13,576 | 46,220 | 40,459 | |||||||||||||||
Occupancy related expense | 2,725 | 2,598 | 2,732 | 2,250 | 2,323 | 8,055 | 7,073 | |||||||||||||||
Equipment and software related expense | 2,248 | 2,223 | 2,191 | 2,038 | 1,965 | 6,662 | 5,691 | |||||||||||||||
FDIC insurance expense | — | 347 | 291 | 308 | 315 | 639 | 943 | |||||||||||||||
Advertising | 861 | 920 | 869 | 530 | 808 | 2,650 | 2,444 | |||||||||||||||
Bankcard expenses | 1,554 | 1,534 | 1,182 | 1,229 | 1,134 | 4,270 | 3,274 |
Postage, delivery, and statement mailings | 659 | 545 | 624 | 527 | 537 | 1,828 | 1,630 | |||||||||||||||
Office supplies | 382 | 399 | 386 | 313 | 364 | 1,167 | 1,006 | |||||||||||||||
Legal and professional fees | 539 | 605 | 521 | 469 | 453 | 1,665 | 1,378 | |||||||||||||||
Telecommunications | 569 | 597 | 726 | 401 | 408 | 1,892 | 1,349 | |||||||||||||||
Repossessed asset (gains) losses, net of expenses | (59 | ) | 253 | 216 | 207 | 156 | 410 | 638 | ||||||||||||||
Merger related expenses | — | 547 | 250 | 13,015 | 242 | 797 | 242 | |||||||||||||||
Other expenses | 3,709 | 4,437 | 4,180 | 2,874 | 2,759 | 12,326 | 8,765 | |||||||||||||||
Total Non-Interest Expense | 28,397 | 30,772 | 29,411 | 38,178 | 25,040 | 88,581 | 74,892 | |||||||||||||||
Income Before Income Taxes | 28,564 | 28,564 | 27,429 | 13,359 | 26,298 | 84,557 | 74,652 | |||||||||||||||
Income tax expense | 6,193 | 5,813 | 5,810 | 2,646 | 5,606 | 17,816 | 15,369 | |||||||||||||||
Net Income Available to Common Shareholders | $ | 22,371 | $ | 22,751 | $ | 21,619 | $ | 10,713 | $ | 20,692 | $ | 66,741 | $ | 59,283 | ||||||||
Distributed earnings allocated to common shareholders | $ | 9,213 | $ | 8,615 | $ | 8,661 | $ | 8,695 | $ | 8,109 | $ | 26,346 | $ | 22,184 | ||||||||
Undistributed earnings allocated to common shareholders | 12,966 | 13,939 | 12,772 | 1,928 | 12,382 | 39,828 | 36,522 | |||||||||||||||
Net earnings allocated to common shareholders | $ | 22,179 | $ | 22,554 | $ | 21,433 | $ | 10,623 | $ | 20,491 | $ | 66,174 | $ | 58,706 | ||||||||
Average common shares outstanding | 16,271 | 16,368 | 16,411 | 15,603 | 15,340 | 16,350 | 15,360 | |||||||||||||||
Shares for diluted earnings per share | 16,289 | 16,386 | 16,429 | 15,618 | 15,358 | 16,368 | 15,380 | |||||||||||||||
Basic earnings per common share | $ | 1.36 | $ | 1.38 | $ | 1.31 | $ | 0.68 | $ | 1.34 | $ | 4.05 | $ | 3.82 | ||||||||
Diluted earnings per common share | $ | 1.36 | $ | 1.38 | $ | 1.30 | $ | 0.68 | $ | 1.33 | $ | 4.04 | $ | 3.82 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 71,332 | $ | 53,373 | $ | 50,522 | $ | 55,016 | $ | 49,806 | |||||
Interest-bearing deposits in depository institutions | 44,862 | 115,346 | 93,328 | 67,975 | 256,104 | ||||||||||
Cash and cash equivalents | 116,194 | 168,719 | 143,850 | 122,991 | 305,910 | ||||||||||
Investment securities available-for-sale, at fair value | 798,930 | 796,237 | 755,081 | 723,254 | 563,003 | ||||||||||
Investment securities held-to-maturity, at amortized cost | 51,211 | 53,362 | 55,326 | 60,827 | 57,812 | ||||||||||
Other securities | 28,070 | 28,014 | 26,182 | 28,810 | 28,875 | ||||||||||
Total investment securities | 878,211 | 877,613 | 836,589 | 812,891 | 649,690 | ||||||||||
Gross loans | 3,582,571 | 3,519,367 | 3,559,322 | 3,587,608 | 3,146,697 | ||||||||||
Allowance for loan losses | (13,186 | ) | (13,795 | ) | (14,646 | ) | (15,966 | ) | (16,311 | ) | |||||
Net loans | 3,569,385 | 3,505,572 | 3,544,676 | 3,571,642 | 3,130,386 | ||||||||||
Bank owned life insurance | 114,616 | 113,855 | 114,256 | 113,544 | 105,372 | ||||||||||
Premises and equipment, net | 76,929 | 78,263 | 78,747 | 78,383 | 72,484 | ||||||||||
Accrued interest receivable | 12,929 | 12,719 | 13,657 | 12,424 | 11,449 | ||||||||||
Net deferred tax assets | 6,432 | 8,835 | 12,734 | 17,338 | 15,653 | ||||||||||
Intangible assets | 120,773 | 121,322 | 121,790 | 122,848 | 78,215 | ||||||||||
Other assets | 62,248 | 53,569 | 51,309 | 46,951 | 51,643 | ||||||||||
Total Assets | $ | 4,957,717 | $ | 4,940,467 | $ | 4,917,608 | $ | 4,899,012 | $ | 4,420,802 | |||||
Liabilities | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing | $ | 795,548 | $ | 798,056 | $ | 793,633 | $ | 789,119 | $ | 672,042 | |||||
Interest-bearing: | |||||||||||||||
Demand deposits | 898,704 | 891,742 | 879,279 | 899,568 | 802,490 | ||||||||||
Savings deposits | 980,539 | 974,847 | 988,182 | 934,218 | 821,390 | ||||||||||
Time deposits | 1,354,787 | 1,366,991 | 1,381,913 | 1,352,654 | 1,147,709 | ||||||||||
Total deposits | 4,029,578 | 4,031,636 | 4,043,007 | 3,975,559 | 3,443,631 | ||||||||||
Short-term borrowings | |||||||||||||||
Federal Funds purchased | — | — | — | 40,000 | 170,000 | ||||||||||
Customer repurchase agreements | 202,622 | 207,033 | 194,683 | 221,911 | 220,124 | ||||||||||
Long-term debt | 4,055 | 4,054 | 4,053 | 4,053 | 16,495 | ||||||||||
Other liabilities | 71,859 | 60,836 | 56,624 | 56,725 | 58,526 | ||||||||||
Total Liabilities | 4,308,114 | 4,303,559 | 4,298,367 | 4,298,248 | 3,908,776 | ||||||||||
Stockholders' Equity | |||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||
Common stock | 47,619 | 47,619 | 47,619 | 47,619 | 47,619 | ||||||||||
Capital surplus | 169,794 | 169,374 | 170,215 | 169,555 | 140,450 | ||||||||||
Retained earnings | 525,933 | 512,911 | 498,847 | 485,967 | 484,017 | ||||||||||
Cost of common stock in treasury | (105,138 | ) | (98,084 | ) | (91,589 | ) | (87,895 | ) | (136,783 | ) | |||||
Accumulated other comprehensive income (loss): | |||||||||||||||
Unrealized gain (loss) on securities available-for-sale | 17,266 | 10,959 | 20 | (8,611 | ) | (18,244 | ) | ||||||||
Underfunded pension liability | (5,871 | ) | (5,871 | ) | (5,871 | ) | (5,871 | ) | (5,033 | ) | |||||
Total Accumulated Other Comprehensive Income (Loss) | 11,395 | 5,088 | (5,851 | ) | (14,482 | ) | (23,277 | ) | |||||||
Total Stockholders' Equity | 649,603 | 636,908 | 619,241 | 600,764 | 512,026 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,957,717 | $ | 4,940,467 | $ | 4,917,608 | $ | 4,899,012 | $ | 4,420,802 | |||||
Regulatory Capital | |||||||||||||||
Total CET 1 capital | $ | 518,175 | $ | 511,344 | $ | 504,148 | $ | 492,526 | $ | 457,580 | |||||
Total tier 1 capital | 522,175 | 515,344 | 508,148 | 496,526 | 473,580 | ||||||||||
Total risk-based capital | 535,441 | 529,230 | 523,053 | 512,801 | 490,307 | ||||||||||
Total risk-weighted assets | 3,318,386 | 3,214,153 | 3,241,989 | 3,267,357 | 2,871,241 |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||
Residential real estate (1) | $ | 1,643,416 | $ | 1,644,494 | $ | 1,625,647 | $ | 1,635,338 | $ | 1,485,823 | |||||
Home equity - junior liens | 150,808 | 150,676 | 152,251 | 153,496 | 143,540 | ||||||||||
Commercial and industrial | 296,927 | 288,803 | 289,327 | 286,314 | 213,815 | ||||||||||
Commercial real estate (2) | 1,431,983 | 1,378,116 | 1,436,190 | 1,454,942 | 1,268,052 | ||||||||||
Consumer | 54,799 | 53,356 | 52,483 | 51,190 | 31,869 | ||||||||||
DDA overdrafts | 4,638 | 3,922 | 3,424 | 6,328 | 3,598 | ||||||||||
Gross Loans | $ | 3,582,571 | $ | 3,519,367 | $ | 3,559,322 | $ | 3,587,608 | $ | 3,146,697 | |||||
Construction loans included in: | |||||||||||||||
(1) - Residential real estate loans | $ | 24,955 | $ | 23,673 | $ | 22,635 | $ | 21,834 | $ | 17,628 | |||||
(2) - Commercial real estate loans | 55,267 | 43,432 | 56,282 | 37,869 | 24,110 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Balance at beginning of period | $ | 13,795 | $ | 14,646 | $ | 15,966 | $ | 16,311 | $ | 16,876 | $ | 15,966 | $ | 18,836 | ||||||||
Charge-offs: | ||||||||||||||||||||||
Commercial and industrial | (17 | ) | (51 | ) | — | (9 | ) | — | (68 | ) | (724 | ) | ||||||||||
Commercial real estate | (216 | ) | (133 | ) | (45 | ) | (20 | ) | (74 | ) | (394 | ) | (349 | ) | ||||||||
Residential real estate | (291 | ) | (303 | ) | (328 | ) | (218 | ) | (244 | ) | (922 | ) | (464 | ) | ||||||||
Home equity | (43 | ) | (71 | ) | (46 | ) | — | (108 | ) | (160 | ) | (219 | ) | |||||||||
Consumer | (182 | ) | (111 | ) | (185 | ) | (209 | ) | (206 | ) | (478 | ) | (560 | ) | ||||||||
DDA overdrafts | (772 | ) | (588 | ) | (625 | ) | (725 | ) | (704 | ) | (1,985 | ) | (1,976 | ) | ||||||||
Total charge-offs | (1,521 | ) | (1,257 | ) | (1,229 | ) | (1,181 | ) | (1,336 | ) | (4,007 | ) | (4,292 | ) | ||||||||
Recoveries: | ||||||||||||||||||||||
Commercial and industrial | 43 | 5 | 135 | 528 | 147 | 183 | 1,625 | |||||||||||||||
Commercial real estate | 7 | 575 | 32 | 194 | 166 | 614 | 538 | |||||||||||||||
Residential real estate | 157 | 50 | 75 | 92 | 116 | 282 | 275 | |||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||
Consumer | 68 | 46 | 97 | 36 | 25 | 211 | 130 | |||||||||||||||
DDA overdrafts | 363 | 330 | 419 | 386 | 344 | 1,112 | 1,109 | |||||||||||||||
Total recoveries | 638 | 1,006 | 758 | 1,236 | 798 | 2,402 | 3,677 | |||||||||||||||
Net (charge-offs)/recoveries | (883 | ) | (251 | ) | (471 | ) | 55 | (538 | ) | (1,605 | ) | (615 | ) | |||||||||
Provision for (recovery of) loan losses | 274 | (600 | ) | (849 | ) | (400 | ) | (27 | ) | (1,175 | ) | (1,910 | ) | |||||||||
Balance at end of period | $ | 13,186 | $ | 13,795 | $ | 14,646 | $ | 15,966 | $ | 16,311 | $ | 13,186 | $ | 16,311 | ||||||||
Loans outstanding | $ | 3,582,571 | $ | 3,519,367 | $ | 3,559,322 | $ | 3,587,608 | $ | 3,146,697 | ||||||||||||
Allowance as a percent of loans outstanding | 0.37 | % | 0.39 | % | 0.41 | % | 0.45 | % | 0.52 | % | ||||||||||||
Allowance as a percent of non-performing loans | 84.3 | % | 115.3 | % | 119.9 | % | 107.8 | % | 142.1 | % | ||||||||||||
Average loans outstanding | $ | 3,544,548 | $ | 3,539,077 | $ | 3,576,984 | $ | 3,252,939 | $ | 3,149,320 | $ | 3,553,417 | $ | 3,140,480 | ||||||||
Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding | 0.10 | % | 0.03 | % | 0.05 | % | (0.01 | )% | 0.07 | % | 0.06 | % | 0.03 | % |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||
Nonaccrual Loans | |||||||||||||||
Residential real estate | $ | 2,570 | $ | 2,354 | $ | 3,263 | $ | 4,275 | $ | 3,029 | |||||
Home equity | 469 | 161 | 41 | 138 | — | ||||||||||
Commercial and industrial | 2,059 | 2,149 | 1,526 | 1,676 | 818 | ||||||||||
Commercial real estate | 10,099 | 7,204 | 7,282 | 8,461 | 7,599 | ||||||||||
Consumer | — | — | 1 | 1 | 1 | ||||||||||
Total nonaccrual loans | 15,197 | 11,868 | 12,113 | 14,551 | 11,447 | ||||||||||
Accruing loans past due 90 days or more | 452 | 94 | 106 | 257 | 35 | ||||||||||
Total non-performing loans | 15,649 | 11,962 | 12,219 | 14,808 | 11,482 | ||||||||||
Other real estate owned | 2,326 | 2,581 | 3,186 | 4,608 | 4,259 | ||||||||||
Total non-performing assets | $ | 17,975 | $ | 14,543 | $ | 15,405 | $ | 19,416 | $ | 15,741 | |||||
Non-performing assets as a percent of loans and other real estate owned | 0.50 | % | 0.41 | % | 0.43 | % | 0.54 | % | 0.50 | % | |||||
Past Due Loans | |||||||||||||||
Residential real estate | $ | 6,859 | $ | 7,302 | $ | 7,972 | $ | 9,991 | $ | 4,657 | |||||
Home equity | 796 | 322 | 720 | 1,275 | 468 | ||||||||||
Commercial and industrial | 526 | 166 | 101 | 497 | 187 | ||||||||||
Commercial real estate | 1,276 | 1,026 | 1,414 | 585 | 934 | ||||||||||
Consumer | 124 | 172 | 264 | 295 | 39 | ||||||||||
DDA overdrafts | 626 | 487 | 535 | 488 | 582 | ||||||||||
Total past due loans | $ | 10,207 | $ | 9,475 | $ | 11,006 | $ | 13,131 | $ | 6,867 | |||||
Total past due loans as a percent of loans outstanding | 0.28 | % | 0.27 | % | 0.31 | % | 0.37 | % | 0.22 | % | |||||
Troubled Debt Restructurings ("TDRs") | |||||||||||||||
Residential real estate | $ | 21,320 | $ | 22,373 | $ | 23,481 | $ | 23,521 | $ | 20,589 | |||||
Home equity | 3,034 | 3,062 | 3,018 | 3,030 | 2,941 | ||||||||||
Commercial and industrial | 83 | 83 | 89 | 98 | 108 | ||||||||||
Commercial real estate | 8,100 | 8,044 | 8,164 | 8,205 | 8,231 | ||||||||||
Consumer | — | — | — | — | — | ||||||||||
Total TDRs | $ | 32,537 | $ | 33,562 | $ | 34,752 | $ | 34,854 | $ | 31,869 |
Three Months Ended | ||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loan portfolio (1): | ||||||||||||||||||||||||
Residential real estate (2) | $ | 1,794,068 | $ | 20,564 | 4.55 | % | $ | 1,783,718 | $ | 20,454 | 4.60 | % | $ | 1,618,829 | $ | 17,653 | 4.33 | % | ||||||
Commercial, financial, and agriculture (2) | 1,692,000 | 21,293 | 4.99 | % | 1,698,186 | 21,658 | 5.12 | % | 1,494,666 | 18,460 | 4.90 | % | ||||||||||||
Installment loans to individuals (2), (3) | 58,480 | 928 | 6.30 | % | 57,173 | 889 | 6.24 | % | 35,825 | 584 | 6.47 | % | ||||||||||||
Previously securitized loans (4) | *** | 159 | *** | *** | 174 | *** | *** | 175 | *** | |||||||||||||||
Total loans | 3,544,548 | 42,944 | 4.81 | % | 3,539,077 | 43,175 | 4.89 | % | 3,149,320 | 36,872 | 4.64 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 790,207 | 6,044 | 3.03 | % | 749,346 | 5,732 | 3.07 | % | 554,157 | 4,216 | 3.02 | % | ||||||||||||
Tax-exempt (5) | 96,011 | 914 | 3.78 | % | 100,348 | 956 | 3.82 | % | 90,596 | 888 | 3.89 | % | ||||||||||||
Total securities | 886,218 | 6,958 | 3.11 | % | 849,694 | 6,688 | 3.16 | % | 644,753 | 5,104 | 3.14 | % | ||||||||||||
Deposits in depository institutions | 72,736 | 271 | 1.48 | % | 124,732 | 577 | 1.86 | % | 210,994 | 940 | 1.77 | % | ||||||||||||
Total interest-earning assets | 4,503,502 | 50,173 | 4.42 | % | 4,513,503 | 50,440 | 4.48 | % | 4,005,067 | 42,916 | 4.25 | % | ||||||||||||
Cash and due from banks | 67,106 | 52,922 | 49,933 | |||||||||||||||||||||
Premises and equipment, net | 78,091 | 79,116 | 72,733 | |||||||||||||||||||||
Goodwill and intangible assets | 121,124 | 121,628 | 78,294 | |||||||||||||||||||||
Other assets | 188,206 | 189,618 | 178,540 | |||||||||||||||||||||
Less: Allowance for loan losses | (13,786 | ) | (15,057 | ) | (17,247 | ) | ||||||||||||||||||
Total assets | $ | 4,944,243 | $ | 4,941,730 | $ | 4,367,320 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 881,476 | $ | 954 | 0.43 | % | $ | 874,039 | $ | 909 | 0.42 | % | $ | 778,639 | $ | 526 | 0.27 | % | ||||||
Savings deposits | 978,198 | 1,159 | 0.47 | % | 980,089 | 1,236 | 0.51 | % | 816,597 | 537 | 0.26 | % | ||||||||||||
Time deposits (2) | 1,360,409 | 6,472 | 1.89 | % | 1,384,017 | 6,272 | 1.82 | % | 1,141,461 | 4,434 | 1.54 | % | ||||||||||||
Short-term borrowings | 187,301 | 814 | 1.72 | % | 199,648 | 863 | 1.73 | % | 350,832 | 1,435 | 1.62 | % | ||||||||||||
Long-term debt | 4,054 | 45 | 4.40 | % | 4,053 | 47 | 4.65 | % | 16,495 | 239 | 5.75 | % | ||||||||||||
Total interest-bearing liabilities | 3,411,438 | 9,444 | 1.10 | % | 3,441,846 | 9,327 | 1.09 | % | 3,104,024 | 7,171 | 0.92 | % | ||||||||||||
Noninterest-bearing demand deposits | 825,029 | 820,689 | 697,485 | |||||||||||||||||||||
Other liabilities | 58,857 | 48,803 | 50,093 | |||||||||||||||||||||
Stockholders' equity | 648,919 | 630,392 | 515,718 | |||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
stockholders' equity | $ | 4,944,243 | $ | 4,941,730 | $ | 4,367,320 | ||||||||||||||||||
Net interest income | $ | 40,729 | $ | 41,113 | $ | 35,745 | ||||||||||||||||||
Net yield on earning assets | 3.59 | % | 3.65 | % | 3.54 | % | ||||||||||||||||||
(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 | $ | 481 | $ | 1,325 |
(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 | $ | 50 | $ | 83 | $ | 110 | ||||||||||||||||||
Commercial, financial, and agriculture | 1,110 | 668 | 157 | |||||||||||||||||||||
Installment loans to individuals | 13 | (6 | ) | 3 | ||||||||||||||||||||
Time deposits | 75 | 196 | — | |||||||||||||||||||||
$ | 1,248 | $ | 941 | $ | 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 | ||||||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
Assets: | ||||||||||||||||
Loan portfolio (1): | ||||||||||||||||
Residential real estate (2) | $ | 1,792,013 | $ | 61,468 | 4.59 | % | $ | 1,607,396 | $ | 51,083 | 4.25 | % | ||||
Commercial, financial, and agriculture (2) | 1,704,141 | 63,796 | 5.01 | % | 1,498,612 | 50,646 | 4.52 | % | ||||||||
Installment loans to individuals (2), (3) | 57,263 | 2,656 | 6.20 | % | 34,472 | 1,604 | 6.22 | % | ||||||||
Previously securitized loans (4) | *** | 477 | *** | *** | 748 | *** | ||||||||||
Total loans | 3,553,417 | 128,397 | 4.83 | % | 3,140,480 | 104,081 | 4.43 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 751,600 | 17,464 | 3.11 | % | 544,351 | 12,314 | 3.02 | % | ||||||||
Tax-exempt (5) | 99,555 | 2,856 | 3.84 | % | 91,147 | 2,677 | 3.93 | % | ||||||||
Total securities | 851,155 | 20,320 | 3.19 | % | 635,498 | 14,991 | 3.15 | % | ||||||||
Deposits in depository institutions | 82,214 | 1,038 | 1.69 | % | 116,532 | 1,043 | 1.20 | % | ||||||||
Total interest-earning assets | 4,486,786 | 149,755 | 4.46 | % | 3,892,510 | 120,115 | 4.13 | % | ||||||||
Cash and due from banks | 65,433 | 45,268 | ||||||||||||||
Premises and equipment, net | 78,475 | 72,780 | ||||||||||||||
Goodwill and intangible assets | 121,780 | 78,420 | ||||||||||||||
Other assets | 191,231 | 174,378 | ||||||||||||||
Less: Allowance for loan losses | (15,000 | ) | (18,286 | ) | ||||||||||||
Total assets | $ | 4,928,705 | $ | 4,245,070 | ||||||||||||
Liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 880,763 | $ | 2,796 | 0.42 | % | $ | 782,883 | $ | 1,327 | 0.23 | % | ||||
Savings deposits | 968,655 | 3,461 | 0.48 | % | 811,818 | 1,331 | 0.22 | % | ||||||||
Time deposits (2) | 1,370,934 | 18,511 | 1.81 | % | 1,120,459 | 12,083 | 1.44 | % | ||||||||
Short-term borrowings | 208,004 | 2,729 | 1.75 | % | 265,877 | 2,355 | 1.18 | % | ||||||||
Long-term debt | 4,053 | 140 | 4.62 | % | 16,495 | 680 | 5.51 | % | ||||||||
Total interest-bearing liabilities | 3,432,409 | 27,637 | 1.08 | % | 2,997,532 | 17,776 | 0.79 | % | ||||||||
Noninterest-bearing demand deposits | 811,411 | 694,453 | ||||||||||||||
Other liabilities | 54,356 | 47,498 | ||||||||||||||
Stockholders' equity | 630,529 | 505,587 | ||||||||||||||
Total liabilities and | ||||||||||||||||
Stockholders' equity | $ | 4,928,705 | $ | 4,245,070 | ||||||||||||
Net interest income | $ | 122,118 | $ | 102,339 | ||||||||||||
Net yield on earning assets | 3.64 | % | 3.52 | % | ||||||||||||
(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 | $ | 711 | $ | 1,549 | ||||||||||||
(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 | $ | 165 | $ | 350 | ||||||||||||
Commercial, financial, and agriculture | 1,968 | 545 | ||||||||||||||
Installment loans to individuals | 1 | 17 | ||||||||||||||
Time deposits | 527 | — | ||||||||||||||
$ | 2,661 | $ | 912 | |||||||||||||
(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 | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | ||||||||||||||||
Net Interest Income/Margin | ||||||||||||||||||||||
Net interest income ("GAAP") | $ | 40,537 | $ | 40,911 | $ | 40,066 | $ | 36,431 | $ | 35,558 | $ | 121,516 | $ | 101,778 | ||||||||
Taxable equivalent adjustment | 192 | 202 | 208 | 194 | 187 | 602 | 561 | |||||||||||||||
Net interest income, fully taxable equivalent | $ | 40,729 | $ | 41,113 | $ | 40,274 | $ | 36,625 | $ | 35,745 | $ | 122,118 | $ | 102,339 | ||||||||
Average interest earning assets | $ | 4,503,502 | $ | 4,513,503 | $ | 4,466,495 | $ | 4,089,984 | $ | 4,005,067 | $ | 4,486,786 | $ | 3,892,510 | ||||||||
Net Interest Margin | 3.59 | % | 3.65 | % | 3.66 | % | 3.55 | % | 3.54 | % | 3.64 | % | 3.52 | % | ||||||||
Accretion related to fair value adjustments | (0.11 | )% | (0.08 | )% | (0.05 | )% | (0.05 | )% | (0.03 | )% | (0.08 | )% | (0.03 | )% | ||||||||
Net Interest Margin (excluding accretion) | 3.48 | % | 3.57 | % | 3.61 | % | 3.50 | % | 3.51 | % | 3.56 | % | 3.48 | % | ||||||||
Tangible Equity Ratio (period end) | ||||||||||||||||||||||
Equity to assets ("GAAP") | 13.10 | % | 12.89 | % | 12.59 | % | 12.26 | % | 11.58 | % | ||||||||||||
Effect of goodwill and other intangibles, net | (2.17 | )% | (2.19 | )% | (2.22 | )% | (2.26 | )% | (1.59 | )% | ||||||||||||
Tangible common equity to tangible assets | 10.93 | % | 10.70 | % | 10.37 | % | 10.00 | % | 9.99 | % | ||||||||||||
Return on tangible equity ("GAAP") | 17.0 | % | 17.9 | % | 17.7 | % | 9.6 | % | 18.9 | % | 17.5 | % | 18.5 | % | ||||||||
Impact of merger related expenses | — | % | 0.3 | % | 0.1 | % | 9.2 | % | 0.3 | % | 0.2 | % | — | % | ||||||||
Return on tangible equity, excluding merger related expenses | 17.0 | % | 18.2 | % | 17.8 | % | 18.8 | % | 19.2 | % | 17.7 | % | 18.5 | % | ||||||||
Return on assets ("GAAP") | 1.81 | % | 1.84 | % | 1.76 | % | 0.96 | % | 1.90 | % | 1.81 | % | 1.86 | % | ||||||||
Impact of merger related expenses | — | % | 0.04 | % | 0.02 | % | 0.92 | % | 0.02 | % | 0.02 | % | — | % | ||||||||
Return on assets, excluding merger related expenses | 1.81 | % | 1.88 | % | 1.78 | % | 1.88 | % | 1.92 | % | 1.82 | % | 1.86 | % | ||||||||
Effective Income Tax Rate | ||||||||||||||||||||||
Effective tax rate ("GAAP") | 21.70 | % | 20.40 | % | 21.20 | % | 19.80 | % | 21.30 | % | 21.10 | % | 20.60 | % | ||||||||
Impact of FIN 48 adjustments | — | % | — | % | — | % | 2.97 | % | — | % | — | % | — | % | ||||||||
Effective tax rate, excluding FIN 48 adjustments | 21.70 | % | 20.40 | % | 21.20 | % | 22.80 | % | 21.30 | % | 21.10 | % | 20.60 | % |
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