Maryland | 0-18082 | 43-1524856 | ||
(State or other jurisdiction of incorporation) |
(Commission File No.) | (IRS Employer Identification Number) |
1451 East Battlefield, Springfield, Missouri | 65804 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits |
||
99.1 | Press release dated October 21, 2014 |
GREAT SOUTHERN BANCORP, INC. |
Date: | October 22, 2014 | By: |
/s/ Joseph W. Turner
|
Joseph W. Turner, President | |||
and Chief Executive Officer |
Exhibit No. | Description |
99.1 | Press release dated October 21, 2014 |
October 21, 2014
|
FOR IMMEDIATE RELEASE
|
·
|
Total Loans: Total gross loans, excluding acquired covered loans, acquired non-covered loans and mortgage loans held for sale, increased $367.7 million, or 17.5%, from December 31, 2013 to September 30, 2014, primarily in the areas of commercial real estate loans, consumer loans, construction loans, commercial business loans and other residential loans. Net decreases in the loan portfolios acquired in 2009, 2011 and 2012 totaled $40.7 million in the nine months ended September 30, 2014. The net carrying value of the loans acquired in the June 2014 Valley Bank transaction was $152.5 million at September 30, 2014, down from $159.7 million at June 30, 2014.
|
·
|
Net Interest Income: Net interest income for the third quarter of 2014 increased $5.6 million to $44.1 million compared to $38.5 million for the third quarter of 2013. Net interest margin was 4.91% for the quarter ended September 30, 2014, compared to 4.64% for the third quarter in 2013 and 4.69% for the quarter ended June 30, 2014. These changes were primarily the result of increases in average loan balances and reductions in interest expense due to the repayment of high-rate borrowings at the end of the second quarter of 2014. The positive impact on net interest margin from the additional yield accretion on acquired loan pools that was recorded during the period was 98 basis points for the quarter ended September 30, 2014, 101 basis points for the quarter ended September 30, 2013, and 107 basis points for the quarter ended June 30, 2014. For further discussion of the additional yield accretion of the discount on acquired loan pools, see the “Net Interest Income” section of this release.
|
·
|
Asset Quality: Non-performing assets and potential problem loans, excluding those covered by FDIC loss sharing agreements and those acquired in the FDIC-assisted transaction with Valley Bank, which are not covered by a loss sharing agreement and are accounted for and analyzed as loan pools rather than individual loans, totaled $68.2 million at September 30, 2014, a decrease of $21.1 million from $89.3 million at December 31, 2013 and a decrease of $4.1 million from $72.3 million at June 30, 2014. Non-performing assets were $47.1 million, or 1.21% of total assets, at September 30, 2014, compared to $62.3 million, or 1.75% of total assets at December 31, 2013. Net charge-offs were $946,000 for the three months ended September 30, 2014, compared to $1.6 million for the three months ended June 30, 2014 and $3.4 million for the three months ended September 30, 2013.
|
·
|
Capital: The capital position of the Company continues to be strong, significantly exceeding the “well capitalized” thresholds established by regulators. On a preliminary basis, as of September 30, 2014, the Company’s Tier 1 leverage ratio was 10.8%, Tier 1 risk-based capital ratio was 13.8%, and total risk-based capital ratio was 15.1%.
|
·
|
Significant Unusual Income and Expense Items: There were several other significant unusual income and expense items recorded during the three months ended September 30, 2014. Investment securities were sold at a gain of $321,000, which included $175,000 of gain on the sale of securities acquired in the Valley transaction. A reversal of the impairment of the indemnification asset for Vantus Bank totaling $350,000 was recorded. A portion of the original $503,000 impairment recorded in the quarter ended June 30, 2014 is expected to be collected from the FDIC. This reversal is included in non-interest income under “accretion (amortization) of income related to business acquisitions.” Gains on loan sales increased substantially in the quarter. Approximately $500,000 of this income in the third quarter was related to Valley Bank production that is not expected to recur in future periods. Non-interest expense included approximately $600,000 in legal expenses that were incurred in resolution of
|
|
a few significant problem credits. We do not currently anticipate such level of legal costs in future periods. Approximately $500,000 in compensation and incentive expense was included in this quarter which is expected to not recur in future periods upon the completion of the Valley Bank systems and back-office integration. Approximately $450,000 of data processing charges were incurred related to the systems conversion which are not recurring items. Approximately $300,000 in various expenses related to checks, supplies, postage, travel and meals, etc. in connection with the Valley transaction, which are not expected to recur, were incurred in the quarter.
|
(In thousands, except per share data)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net interest income
|
$ | 44,106 | $ | 38,464 | $ | 122,043 | $ | 119,098 | ||||||||
Provision for loan losses
|
945 | 2,677 | 4,099 | 14,573 | ||||||||||||
Non-interest income
|
1,778 | 929 | 13,332 | 6,179 | ||||||||||||
Non-interest expense
|
29,398 | 26,156 | 89,689 | 78,790 | ||||||||||||
Provision for income taxes
|
3,951 | 2,121 | 10,125 | 6,858 | ||||||||||||
Net income
|
$ | 11,590 | $ | 8,439 | $ | 31,462 | $ | 25,056 | ||||||||
Net income available to common shareholders
|
$ | 11,445 | $ | 8,294 | $ | 31,027 | $ | 24,621 | ||||||||
Earnings per diluted common share
|
$ | 0.83 | $ | 0.61 | $ | 2.25 | $ | 1.80 |
Three Months Ended
|
||||||||||
September 30, 2014
|
September 30, 2013
|
|||||||||
(In thousands, except basis points data)
|
||||||||||
Impact on net interest income/
net interest margin (in basis points)
|
$ | 8,848 |
98 bps
|
$ | 8,412 |
101 bps
|
||||
Non-interest income
|
(7,438 | ) | (7,310 | ) | ||||||
Net impact to pre-tax income
|
$ | 1,410 | $ | 1,102 |
Nine Months Ended
|
||||||||||
September 30, 2014
|
September 30, 2013
|
|||||||||
(In thousands, except basis points data)
|
||||||||||
Impact on net interest income/
net interest margin (in basis points)
|
$ | 25,836 |
101 bps
|
$ | 26,508 |
103 bps
|
||||
Non-interest income
|
(21,915 | ) | (22,529 | ) | ||||||
Net impact to pre-tax income
|
$ | 3,921 | $ | 3,979 |
·
|
Service charges and ATM fees: Service charges and ATM fees increased $439,000 compared to the prior year quarter, primarily due to an increase in fee income from the additional accounts acquired in the Valley Bank transaction in June 2014.
|
·
|
Gains on sales of single-family loans: Gains on sales of single-family loans increased $364,000 compared to the prior year quarter. $217,000 of this increase was related to the single-family loans acquired in the Valley Bank acquisition and subsequently sold in the secondary market. The remaining increase was due to an increase in originations of fixed-rate loans in the 2014 period. Fixed rate loans originated are subsequently sold in the secondary market.
|
·
|
Net realized gains on sales of available-for-sale securities: Gains on sales of available-for-sale securities increased $121,000 compared to the prior year quarter. This was primarily due to the sale of the mortgage-backed securities and collateralized mortgage obligations acquired in the Valley Bank acquisition in July 2014, which produced a gain of $175,000. In addition, the Company sold several mortgage-backed securities in August 2014, which produced a gain of $52,000.
|
·
|
Amortization of income related to business acquisitions: The net amortization expense related to business acquisitions was $6.5 million for the quarter ended September 30, 2014, compared to $6.3 million for the quarter ended September 30, 2013. The amortization expense for the quarter ended September 30, 2014, was made up of the following items: $7.1 million of amortization expense related to the changes in cash flows expected to be collected from the FDIC-covered loan portfolios and $447,000 of amortization of the clawback liability. Partially offsetting the expense was income from the accretion of the discount related to the indemnification assets for all of the acquisitions of $453,000 and $185,000 of other loss share income items. Also partially offsetting the expense was income from the
|
·
|
Initial gain recognized on business acquisition: The Company recognized a preliminary one-time gain of $10.8 million (pre-tax) on the FDIC-assisted acquisition of Valley Bank, which occurred on June 20, 2014.
|
·
|
Net realized gains on sales of available-for-sale securities: Gains on sales of available-for-sale securities increased $722,000 compared to the prior year period. This was primarily due to the sale of all of the Company’s Small Business Administration securities in June 2014, which produced a gain of $569,000, and the sale of the acquired Valley Bank securities in July 2014 as mentioned above.
|
·
|
Amortization of income related to business acquisitions: The net amortization expense related to business acquisitions was $20.1 million for the nine months ended September 30, 2014, compared to $17.9 million for the nine months ended September 30, 2013. The amortization expense for the nine months ended September 30, 2014, was made up of the following items: $21.2 million of amortization expense related to the changes in cash flows expected to be collected from the FDIC-covered loan portfolios, $1.2 million of amortization of the clawback liability and $152,000 of impairment of the indemnification asset for Vantus Bank. The impairment was recorded because the Company does not expect resolution of certain items related to commercial foreclosed assets prior to the expiration of the non-single-family loss sharing agreement for Vantus Bank. Offsetting the expense was income from the accretion of the discount related to the indemnification assets for all of the acquisitions of $1.9 million and $604,000 of other loss share income items.
|
·
|
Gains on sales of single-family loans: Gains on sales of single-family loans decreased $1.5 million compared to the prior year period. This was due to a decrease in originations of fixed-rate loans due to higher fixed rates on these loans in the 2014 period which resulted in fewer loans being originated to refinance existing debt. Fixed rate loans originated are subsequently sold in the secondary market. The decrease occurred in the first six months of the year and was offset by an increase in gains on sales of single-family loans during the three months ended September 30, 2014, as discussed above.
|
·
|
Other Income: Other income decreased $551,000 compared to the prior year period primarily due to unusual income received in the 2013 period which was not repeated in the current year period. In the 2013 period the Company received a one-time payment from MasterCard of approximately $480,000.
|
·
|
Change in interest rate swap fair value: The Company recorded expense of $(223,000) during the 2014 period due to the decrease in the interest rate swap fair value related to its matched book interest rate derivatives program. This compares to income of $283,000 recorded during the nine months ended September 30, 2013.
|
·
|
Valley Bank acquisition expenses: The Company incurred approximately $2.3 million of additional non-interest expenses during the quarter related to the FDIC-assisted acquisition of Valley Bank. Those expenses included approximately $1.0 million of compensation expense, approximately $450,000 of net computer and equipment expense, approximately $279,000 of net occupancy expense, approximately $115,000 of travel, meals and other expenses related to the integration of operations and various other expenses. As noted earlier, we expect that a portion of these expenses will not recur in future periods.
|
·
|
Other Operating Expenses: Other operating expenses increased $275,000, to $2.1 million, in the quarter ended September 30, 2014 compared to the prior year quarter primarily due to an increase in certain costs to originate consumer and mortgage loans of approximately $146,000 and an increase in
|
·
|
Other Operating Expenses: Other operating expenses increased $7.9 million, to $13.6 million for the nine months ended September 30, 2014 compared to the prior year period primarily due to $7.4 million in prepayment penalties paid as the Company elected to repay $130 million of its FHLB advances and structured repo borrowings prior to their maturity during the three months ended June 30, 2014.
|
·
|
Valley Bank acquisition expenses: The Company incurred approximately $2.9 million of additional non-interest expenses during the nine month period related to the FDIC-assisted acquisition of Valley Bank. Those expenses included approximately $1.3 million of compensation expense, approximately $450,000 of net computer and equipment expense, approximately $313,000 of net occupancy expense, approximately $156,000 of legal, audit and other professional fees expense, approximately $239,000 of travel, meals and other expenses related to due diligence for the transaction and integration issues and various other expenses. As noted earlier, we expect that a portion of these expenses will not recur in future periods.
|
Beginning
Balance,
July 1
|
Additions to
Non-
Performing
|
Removed
from Non-
Performing
|
Transfers
to Potential
Problem
Loans
|
Transfers to
Foreclosed
Assets
|
Charge-Offs
|
Payments
|
Ending
Balance,
September 30
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
One- to four-family construction
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Subdivision construction
|
304 | 1,446 | — | — | — | (123 | ) | (181 | ) | 1,446 | ||||||||||||||||||||||
Land development
|
303 | — | — | — | (20 | ) | (1 | ) | (16 | ) | 266 | |||||||||||||||||||||
Commercial construction
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential
|
3,252 | 2,817 | — | (32 | ) | (273 | ) | (401 | ) | (414 | ) | 4,949 | ||||||||||||||||||||
Other residential
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate
|
7,029 | 380 | — | — | — | (417 | ) | (4,025 | ) | 2,967 | ||||||||||||||||||||||
Commercial business
|
2,041 | 225 | — | — | — | (7 | ) | (627 | ) | 1,632 | ||||||||||||||||||||||
Consumer
|
733 | 269 | — | (8 | ) | (28 | ) | (57 | ) | (128 | ) | 781 | ||||||||||||||||||||
Total
|
$ | 13,662 | $ | 5,137 | $ | — | $ | (40 | ) | $ | (321 | ) | $ | (1,006 | ) | $ | (5,391 | ) | $ | 12,041 | ||||||||||||
Beginning
Balance,
July 1
|
Additions to
Potential
Problem
|
Removed
from
Potential
Problem
|
Transfers to
Non-
Performing
|
Transfers to
Foreclosed
Assets
|
Charge-Offs
|
Payments
|
Ending
Balance,
September 30
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
One- to four-family construction
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Subdivision construction
|
1,197 | 54 | — | (503 | ) | — | — | (13 | ) | 735 | ||||||||||||||||||||||
Land development
|
5,857 | — | — | — | — | — | — | 5,857 | ||||||||||||||||||||||||
Commercial construction
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential
|
3,327 | 76 | — | (1,629 | ) | — | — | (15 | ) | 1,759 | ||||||||||||||||||||||
Other residential
|
1,956 | — | — | — | — | — | — | 1,956 | ||||||||||||||||||||||||
Commercial real estate
|
6,907 | 2,858 | — | — | — | — | (89 | ) | 9,676 | |||||||||||||||||||||||
Commercial business
|
1,048 | — | — | (225 | ) | — | — | — | 823 | |||||||||||||||||||||||
Consumer
|
259 | 39 | — | — | — | (21 | ) | (11 | ) | 266 | ||||||||||||||||||||||
Total
|
$ | 20,551 | $ | 3,027 | $ | — | $ | (2,357 | ) | $ | — | $ | (21 | ) | $ | (128 | ) | $ | 21,072 | |||||||||||||
Beginning
Balance,
July 1
|
Additions
|
ORE Sales
|
Capitalized
Costs
|
ORE Write-
Downs
|
Ending
Balance,
September 30
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
One-to four-family construction
|
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Subdivision construction
|
10,294 | — | (516 | ) | — | — | 9,778 | |||||||||||||||||
Land development
|
17,735 | 17 | — | — | — | 17,752 | ||||||||||||||||||
Commercial construction
|
— | — | — | — | — | — | ||||||||||||||||||
One- to four-family residential
|
1,706 | 276 | (369 | ) | — | (49 | ) | 1,564 | ||||||||||||||||
Other residential
|
3,712 | — | (190 | ) | 55 | — | 3,577 | |||||||||||||||||
Commercial real estate
|
4,062 | — | (2,283 | ) | — | — | 1,779 | |||||||||||||||||
Commercial business
|
59 | — | — | — | — | 59 | ||||||||||||||||||
Consumer
|
555 | 854 | (844 | ) | — | — | 565 | |||||||||||||||||
Total
|
$ | 38,123 | $ | 1,147 | $ | (4,202 | ) | $ | 55 | $ | (49 | ) | $ | 35,074 | ||||||||||
·
|
In September 2014, two banking centers were closed - one in Lamar, Mo., and one in Johnston, Iowa. Both of these offices were leased and were underutilized. Customer accounts have been moved to other Great Southern locations.
|
·
|
Construction of a full-service banking center in Columbia, Mo., is underway. The new banking center site is located at 3200 S. Providence Road and is expected to be open late in the first quarter of 2015.
|
·
|
The Company recently purchased a 20,000-square-foot former bank office building in Leawood, Johnson County, Kan., a suburb of the Kansas City metropolitan market area. Scheduled to be open for business in mid-2015, the office will house the Kansas City commercial lending group, currently located in nearby Overland Park, Kan., and a retail banking center. Additional space in the building is leased to tenants unrelated to the Company.
|
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Selected Financial Condition Data:
|
(In thousands)
|
|||||||
Total assets
|
$ | 3,909,425 | $ | 3,560,250 | ||||
Loans receivable, gross
|
2,962,136 | 2,482,641 | ||||||
Allowance for loan losses
|
38,081 | 40,116 | ||||||
Other real estate owned, net
|
43,762 | 53,514 | ||||||
Available-for-sale securities, at fair value
|
425,156 | 555,281 | ||||||
Deposits
|
3,071,170 | 2,808,626 | ||||||
Total borrowings
|
394,576 | 343,795 | ||||||
Total stockholders’ equity
|
409,050 | 380,698 | ||||||
Common stockholders’ equity
|
351,107 | 322,755 | ||||||
Non-performing assets (excluding FDIC-covered assets)
|
47,115 | 62,303 |
Three Months Ended
|
Nine Months Ended
|
Three Months Ended
|
||||||||||||||||||
September 30,
|
September 30,
|
June 30,
|
||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
2014
|
||||||||||||||||
Selected Operating Data:
|
(Dollars in thousands, except per share data)
|
|||||||||||||||||||
Interest income
|
$ | 47,607 | $ | 43,019 | $ | 134,286 | $ | 133,856 | $ | 44,384 | ||||||||||
Interest expense
|
3,501 | 4,555 | 12,243 | 14,758 | 4,413 | |||||||||||||||
Net interest income
|
44,106 | 38,464 | 122,043 | 119,098 | 39,971 | |||||||||||||||
Provision for loan losses
|
945 | 2,677 | 4,099 | 14,573 | 1,462 | |||||||||||||||
Non-interest income
|
1,778 | 929 | 13,332 | 6,179 | 10,631 | |||||||||||||||
Non-interest expense
|
29,398 | 26,156 | 89,689 | 78,790 | 34,399 | |||||||||||||||
Provision for income taxes
|
3,951 | 2,121 | 10,125 | 6,858 | 3,687 | |||||||||||||||
Net income
|
$ | 11,590 | $ | 8,439 | $ | 31,462 | $ | 25,056 | $ | 11,054 | ||||||||||
Net income available to
common shareholders
|
$ | 11,445 | $ | 8,294 | $ | 31,027 | $ | 24,621 | $ | 10,909 | ||||||||||
At or For the Three Months Ended
|
At or For the Nine
Months Ended
|
At or For the Three Months Ended
|
||||||||||||||||||
September 30,
|
September 30,
|
June 30,
|
||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
2014
|
||||||||||||||||
Per Common Share:
|
(Dollars in thousands, except per share data)
|
|||||||||||||||||||
Net income (fully diluted)
|
$ | 0.83 | $ | 0.61 | $ | 2.25 | $ | 1.80 | $ | 0.79 | ||||||||||
Book value
|
$ | 25.62 | $ | 23.15 | $ | 25.62 | $ | 23.15 | $ | 24.96 | ||||||||||
Earnings Performance Ratios:
|
||||||||||||||||||||
Annualized return on average assets
|
1.18 | % | 0.92 | % | 1.11 | % | 0.87 | % | 1.17 | % | ||||||||||
Annualized return on average
common stockholders’ equity
|
13.29 | % | 10.56 | % | 12.35 | % | 10.44 | % | 13.02 | % | ||||||||||
Net interest margin
|
4.91 | % | 4.64 | % | 4.75 | % | 4.60 | % | 4.69 | % | ||||||||||
Average interest rate spread
|
4.83 | % | 4.53 | % | 4.65 | % | 4.51 | % | 4.58 | % | ||||||||||
Efficiency ratio
|
64.07 | % | 66.40 | % | 66.25 | % | 62.89 | % | 67.98 | % | ||||||||||
Non-interest expense to average total assets
|
2.99 | % | 2.85 | % | 3.15 | % | 2.72 | % | 3.64 | % | ||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Allowance for loan losses to period-end loans
(excluding covered loans)
|
1.43 | % | 2.01 | % | 1.43 | % | 2.01 | % | 1.54 | % | ||||||||||
Non-performing assets to period-end assets
|
1.21 | % | 1.75 | % | 1.21 | % | 1.75 | % | 1.32 | % | ||||||||||
Non-performing loans to period-end loans
|
0.40 | % | 0.90 | % | 0.40 | % | 0.90 | % | 0.48 | % | ||||||||||
Annualized net charge-offs to average loans
|
0.15 | % | 0.70 | % | 0.35 | % | 1.09 | % | 0.29 | % |
September 30,
2014
|
December 31,
2013
|
June 30,
2014
|
||||||||||
Assets
|
||||||||||||
Cash
|
$ | 94,682 | $ | 96,167 | $ | 130,760 | ||||||
Interest-bearing deposits in other financial institutions
|
126,704 | 131,758 | 69,838 | |||||||||
Federal funds sold
|
— | — | 22,628 | |||||||||
Cash and cash equivalents
|
221,386 | 227,925 | 223,226 | |||||||||
Available-for-sale securities
|
425,156 | 555,281 | 569,030 | |||||||||
Held-to-maturity securities
|
450 | 805 | 450 | |||||||||
Mortgage loans held for sale
|
30,361 | 7,239 | 9,605 | |||||||||
Loans receivable (1), net of allowance for loan losses of $38,081 –
September 2014; $40,116 - December 2013 and $38,082 – June
2014
|
2,921,310 | 2,439,530 | 2,790,774 | |||||||||
FDIC indemnification asset
|
51,603 | 72,705 | 58,352 | |||||||||
Interest receivable
|
11,214 | 11,408 | 11,685 | |||||||||
Prepaid expenses and other assets
|
63,334 | 72,904 | 68,466 | |||||||||
Other real estate owned (2), net
|
43,762 | 53,514 | 46,226 | |||||||||
Premises and equipment, net
|
120,891 | 104,534 | 118,649 | |||||||||
Goodwill and other intangible assets
|
7,945 | 4,583 | 8,385 | |||||||||
Federal Home Loan Bank stock
|
12,013 | 9,822 | 8,054 | |||||||||
Total Assets
|
$ | 3,909,425 | $ | 3,560,250 | $ | 3,912,902 | ||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Liabilities
|
||||||||||||
Deposits
|
$ | 3,071,170 | $ | 2,808,626 | $ | 3,201,728 | ||||||
Federal Home Loan Bank advances
|
190,664 | 126,757 | 91,686 | |||||||||
Securities sold under reverse repurchase agreements with customers
|
171,828 | 134,981 | 157,683 | |||||||||
Structured repurchase agreements
|
— | 50,000 | — | |||||||||
Short-term borrowings
|
1,155 | 1,128 | 1,158 | |||||||||
Subordinated debentures issued to capital trust
|
30,929 | 30,929 | 30,929 | |||||||||
Accrued interest payable
|
1,024 | 1,099 | 1,096 | |||||||||
Advances from borrowers for taxes and insurance
|
7,744 | 3,721 | 7,026 | |||||||||
Accounts payable and accrued expenses
|
22,258 | 18,502 | 16,230 | |||||||||
Current and deferred income taxes
|
3,603 | 3,809 | 5,815 | |||||||||
Total Liabilities
|
3,500,375 | 3,179,552 | 3,513,351 | |||||||||
Stockholders’ Equity
|
||||||||||||
Capital stock
|
||||||||||||
Serial preferred stock - SBLF, $.01 par value; authorized
1,000,000 shares; issued and outstanding September 2014,
December 2013 and June 2014 – 57,943 shares
|
57,943 | 57,943 | 57,943 | |||||||||
Common stock, $.01 par value; authorized 20,000,000 shares;
issued and outstanding September 2014 – 13,706,950 shares;
December 2013 – 13,673,709 shares and June 2014 –
13,684,680 shares
|
137 | 137 | 137 | |||||||||
Additional paid-in capital
|
21,486 | 19,567 | 20,093 | |||||||||
Retained earnings
|
322,529 | 300,589 | 314,503 | |||||||||
Accumulated other comprehensive gain
|
6,955 | 2,462 | 6,875 | |||||||||
Total Stockholders’ Equity
|
409,050 | 380,698 | 399,551 | |||||||||
Total Liabilities and Stockholders’ Equity
|
$ | 3,909,425 | $ | 3,560,250 | $ | 3,912,902 | ||||||
(1)
|
At September 30, 2014, December 31, 2013, and June 30, 2014, includes loans, net of discounts, totaling $315.1 million, $386.2 million and $332.0 million, respectively, which are subject to FDIC support through loss sharing agreements. As of September 30, 2014 and June 30, 2014, also includes $30.4 million and $31.3 million, respectively, of non- single-family loans acquired in the Team Bank transaction, which are no longer covered by the FDIC loss sharing agreement. In addition, as of September 30, 2014 and June 30, 2014, includes $152.5 million and $159.7 million, respectively, of loans, net of discounts, acquired in the Valley Bank transaction, which are not covered by FDIC loss sharing agreements, but were recorded at fair value at the time of the acquisition.
|
(2)
|
At September 30, 2014, December 31, 2013, and June 30, 2014, includes foreclosed assets, net of discounts, totaling $6.7 million, $9.0 million and $6.1 million, respectively, which are subject to FDIC support through loss sharing agreements.
|
Consolidated Statements of Income
|
(In thousands, except per share data)
|
Three Months Ended
|
Nine Months Ended
|
Three Months
Ended
|
||||||||||||||||||
September 30,
|
September 30,
|
June 30,
|
||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
2014
|
||||||||||||||||
Interest Income
|
||||||||||||||||||||
Loans
|
$ | 44,948 | $ | 40,087 | $ | 125,669 | $ | 122,226 | $ | 41,412 | ||||||||||
Investment securities and other
|
2,659 | 2,932 | 8,617 | 11,630 | 2,972 | |||||||||||||||
47,607 | 43,019 | 134,286 | 133,856 | 44,384 | ||||||||||||||||
Interest Expense
|
||||||||||||||||||||
Deposits
|
2,884 | 2,822 | 8,297 | 9,611 | 2,752 | |||||||||||||||
Federal Home Loan Bank advances
|
461 | 1,005 | 2,446 | 2,968 | 1,010 | |||||||||||||||
Short-term borrowings and repurchase agreements
|
13 | 587 | 1,082 | 1,758 | 512 | |||||||||||||||
Subordinated debentures issued to capital trust
|
143 | 141 | 418 | 421 | 139 | |||||||||||||||
3,501 | 4,555 | 12,243 | 14,758 | 4,413 | ||||||||||||||||
Net Interest Income
|
44,106 | 38,464 | 122,043 | 119,098 | 39,971 | |||||||||||||||
Provision for Loan Losses
|
945 | 2,677 | 4,099 | 14,573 | 1,462 | |||||||||||||||
Net Interest Income After Provision for Loan Losses
|
43,161 | 35,787 | 117,944 | 104,525 | 38,509 | |||||||||||||||
Noninterest Income
|
||||||||||||||||||||
Commissions
|
284 | 158 | 910 | 836 | 344 | |||||||||||||||
Service charges and ATM fees
|
5,168 | 4,729 | 14,064 | 13,800 | 4,728 | |||||||||||||||
Net gains on loan sales
|
1,543 | 1,179 | 2,700 | 4,236 | 608 | |||||||||||||||
Net realized gains on sales and impairments of
available-for-sale securities
|
321 | 110 | 963 | 241 | 569 | |||||||||||||||
Late charges and fees on loans
|
248 | 284 | 827 | 785 | 265 | |||||||||||||||
Net change in interest rate swap fair value
|
10 | (125 | ) | (223 | ) | 283 | (130 | ) | ||||||||||||
Initial gain recognized on business acquisition
|
— | — | 10,805 | — | 10,805 | |||||||||||||||
Accretion (amortization) of income related to
business acquisitions
|
(6,463 | ) | (6,339 | ) | (20,061 | ) | (17,900 | ) | (7,210 | ) | ||||||||||
Other income
|
667 | 933 | 3,347 | 3,898 | 652 | |||||||||||||||
1,778 | 929 | 13,332 | 6,179 | 10,631 | ||||||||||||||||
Noninterest Expense
|
||||||||||||||||||||
Salaries and employee benefits
|
14,884 | 13,034 | 41,371 | 39,334 | 13,470 | |||||||||||||||
Net occupancy expense
|
6,172 | 5,216 | 16,786 | 15,451 | 5,210 | |||||||||||||||
Postage
|
935 | 790 | 2,572 | 2,454 | 844 | |||||||||||||||
Insurance
|
940 | 1,083 | 2,820 | 3,204 | 953 | |||||||||||||||
Advertising
|
522 | 433 | 1,690 | 1,599 | 438 | |||||||||||||||
Office supplies and printing
|
393 | 320 | 1,050 | 950 | 367 | |||||||||||||||
Telephone
|
695 | 679 | 2,112 | 2,169 | 681 | |||||||||||||||
Legal, audit and other professional fees
|
1,389 | 1,186 | 3,230 | 2,936 | 908 | |||||||||||||||
Expense on foreclosed assets
|
982 | 1,068 | 3,173 | 3,478 | 1,342 | |||||||||||||||
Partnership tax credit
|
420 | 556 | 1,300 | 1,552 | 427 | |||||||||||||||
Other operating expenses
|
2,066 | 1,791 | 13,585 | 5,663 | 9,759 | |||||||||||||||
29,398 | 26,156 | 89,689 | 78,790 | 34,399 | ||||||||||||||||
Income Before Income Taxes
|
15,541 | 10,560 | 41,587 | 31,914 | 14,741 | |||||||||||||||
Provision for Income Taxes
|
3,951 | 2,121 | 10,125 | 6,858 | 3,687 | |||||||||||||||
Net Income
|
11,590 | 8,439 | 31,462 | 25,056 | 11,054 | |||||||||||||||
Preferred Stock Dividends
|
145 | 145 | 435 | 435 | 145 | |||||||||||||||
Net Income Available to Common Shareholders
|
$ | 11,445 | $ | 8,294 | $ | 31,027 | $ | 24,621 | $ | 10,909 |
Three Months Ended
|
Nine Months Ended
|
Three Months
Ended
|
||||||||||||||||||
September 30,
|
September 30,
|
June 30,
|
||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
2014
|
||||||||||||||||
Earnings Per Common Share
|
||||||||||||||||||||
Basic
|
$ | 0.84 | $ | 0.61 | $ | 2.27 | $ | 1.81 | $ | 0.80 | ||||||||||
Diluted
|
$ | 0.83 | $ | 0.61 | $ | 2.25 | $ | 1.80 | $ | 0.79 | ||||||||||
Dividends Declared Per Common Share
|
$ | 0.20 | $ | 0.18 | $ | 0.60 | $ | 0.54 | $ | 0.20 | ||||||||||
September 30, 2014(1)
|
Three Months Ended
September 30, 2014
|
Three Months Ended
September 30, 2013
|
||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||
Yield/Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
One- to four-family residential
|
4.63 | % | $ | 550,479 | $ | 11,353 | 8.18 | % | $ | 461,892 | $ | 8,434 | 7.24 | % | ||||||||||||||
Other residential
|
4.57 | 388,799 | 5,462 | 5.57 | 285,040 | 5,754 | 8.01 | |||||||||||||||||||||
Commercial real estate
|
4.46 | 932,658 | 12,129 | 5.16 | 817,080 | 12,401 | 6.02 | |||||||||||||||||||||
Construction
|
4.33 | 274,951 | 3,550 | 5.12 | 210,072 | 3,303 | 6.24 | |||||||||||||||||||||
Commercial business
|
4.73 | 307,914 | 4,168 | 5.37 | 248,826 | 3,850 | 6.14 | |||||||||||||||||||||
Other loans
|
5.29 | 428,946 | 7,625 | 7.05 | 303,776 | 5,695 | 7.44 | |||||||||||||||||||||
Industrial revenue bonds
|
5.47 | 47,633 | 661 | 5.50 | 45,333 | 650 | 5.68 | |||||||||||||||||||||
Total loans receivable
|
4.78 | 2,931,380 | 44,948 | 6.08 | 2,372,019 | 40,087 | 6.70 | |||||||||||||||||||||
Investment securities
|
2.97 | 486,040 | 2,592 | 2.12 | 667,950 | 2,820 | 1.68 | |||||||||||||||||||||
Other interest-earning assets
|
0.24 | 148,228 | 67 | 0.18 | 246,708 | 112 | 0.18 | |||||||||||||||||||||
Total interest-earning assets
|
4.39 | 3,565,648 | 47,607 | 5.30 | 3,286,677 | 43,019 | 5.19 | |||||||||||||||||||||
Non-interest-earning assets:
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
101,239 | 90,021 | ||||||||||||||||||||||||||
Other non-earning assets
|
266,846 | 295,593 | ||||||||||||||||||||||||||
Total assets
|
$ | 3,933,733 | $ | 3,672,291 | ||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Interest-bearing demand and
|
||||||||||||||||||||||||||||
savings
|
0.19 | $ | 1,467,364 | 789 | 0.21 | $ | 1,336,049 | 710 | 0.21 | |||||||||||||||||||
Time deposits
|
0.77 | 1,090,111 | 2,095 | 0.76 | 1,034,460 | 2,112 | 0.81 | |||||||||||||||||||||
Total deposits
|
0.44 | 2,557,475 | 2,884 | 0.45 | 2,370,509 | 2,822 | 0.47 | |||||||||||||||||||||
Short-term borrowings and repurchase agreements
|
0.03 | 161,178 | 13 | 0.03 | 220,645 | 587 | 1.06 | |||||||||||||||||||||
Subordinated debentures issued to
capital trust
|
1.81 | 30,929 | 143 | 1.83 | 30,929 | 141 | 1.81 | |||||||||||||||||||||
FHLB advances
|
1.57 | 214,282 | 461 | 0.85 | 129,488 | 1,005 | 3.08 | |||||||||||||||||||||
Total interest-bearing liabilities
|
0.51 | 2,963,864 | 3,501 | 0.47 | 2,751,571 | 4,555 | 0.66 | |||||||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Demand deposits
|
544,760 | 523,578 | ||||||||||||||||||||||||||
Other liabilities
|
18,397 | 19,689 | ||||||||||||||||||||||||||
Total liabilities
|
3,527,021 | 3,294,838 | ||||||||||||||||||||||||||
Stockholders’ equity
|
406,712 | 377,453 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 3,933,733 | $ | 3,672,291 | ||||||||||||||||||||||||
Net interest income:
|
||||||||||||||||||||||||||||
Interest rate spread
|
3.88 | % | $ | 44,106 | 4.83 | % | $ | 38,464 | 4.53 | % | ||||||||||||||||||
Net interest margin*
|
4.91 | % | 4.64 | % | ||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
120.3 | % | 119.4 | % |
(1)
|
The yield/rate on loans at September 30, 2014, does not include the impact of the adjustments to the accretable yield (income) on loans acquired in the FDIC-assisted transactions. See “Net Interest Income” for a discussion of the effect on results of operations for the three months ended September 30, 2014.
|
September 30,
2014(1)
|
Nine Months Ended
September 30, 2014
|
Nine Months Ended
September 30, 2013
|
||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||
Yield/Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
One- to four-family residential
|
4.63 | % | $ | 483,101 | $ | 30,709 | 8.50 | % | $ | 481,032 | $ | 25,835 | 7.18 | % | ||||||||||||||
Other residential
|
4.57 | 367,907 | 16,013 | 5.82 | 302,603 | 17,948 | 7.93 | |||||||||||||||||||||
Commercial real estate
|
4.46 | 902,867 | 35,851 | 5.31 | 803,493 | 37,432 | 6.23 | |||||||||||||||||||||
Construction
|
4.33 | 239,563 | 8,782 | 4.90 | 208,669 | 11,523 | 7.38 | |||||||||||||||||||||
Commercial business
|
4.73 | 287,639 | 11,634 | 5.41 | 248,865 | 11,118 | 5.97 | |||||||||||||||||||||
Other loans
|
5.29 | 375,048 | 20,736 | 7.39 | 291,406 | 16,184 | 7.43 | |||||||||||||||||||||
Industrial revenue bonds
|
5.47 | 46,771 | 1,944 | 5.56 | 51,766 | 2,186 | 5.65 | |||||||||||||||||||||
Total loans receivable
|
4.78 | 2,702,896 | 125,669 | 6.22 | 2,387,834 | 122,226 | 6.84 | |||||||||||||||||||||
Investment securities
|
2.97 | 528,794 | 8,367 | 2.12 | 763,143 | 11,291 | 1.98 | |||||||||||||||||||||
Other interest-earning assets
|
0.24 | 201,414 | 250 | 0.17 | 313,402 | 339 | 0.14 | |||||||||||||||||||||
Total interest-earning assets
|
4.39 | 3,433,104 | 134,286 | 5.23 | 3,464,379 | 133,856 | 5.16 | |||||||||||||||||||||
Non-interest-earning assets:
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
93,901 | 87,585 | ||||||||||||||||||||||||||
Other non-earning assets
|
266,184 | 308,303 | ||||||||||||||||||||||||||
Total assets
|
$ | 3,793,189 | $ | 3,860,267 | ||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Interest-bearing demand and
|
||||||||||||||||||||||||||||
savings
|
0.19 | $ | 1,438,496 | 2,364 | 0.22 | $ | 1,523,320 | 2,866 | 0.25 | |||||||||||||||||||
Time deposits
|
0.77 | 1,019,743 | 5,933 | 0.78 | 1,095,145 | 6,745 | 0.82 | |||||||||||||||||||||
Total deposits
|
0.44 | 2,458,239 | 8,297 | 0.45 | 2,618,465 | 9,611 | 0.49 | |||||||||||||||||||||
Short-term borrowings and repurchase agreements
|
0.03 | 189,845 | 1,082 | 0.76 | 245,351 | 1,758 | 0.96 | |||||||||||||||||||||
Subordinated debentures issued to
capital trust
|
1.81 | 30,929 | 418 | 1.81 | 30,929 | 421 | 1.82 | |||||||||||||||||||||
FHLB advances
|
1.57 | 158,919 | 2,446 | 2.06 | 127,650 | 2,968 | 3.11 | |||||||||||||||||||||
Total interest-bearing liabilities
|
0.51 | 2,837,932 | 12,243 | 0.58 | 3,022,395 | 14,758 | 0.65 | |||||||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Demand deposits
|
537,436 | 439,076 | ||||||||||||||||||||||||||
Other liabilities
|
20,093 | 20,856 | ||||||||||||||||||||||||||
Total liabilities
|
3,395,461 | 3,482,327 | ||||||||||||||||||||||||||
Stockholders’ equity
|
397,728 | 377,940 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 3,793,189 | $ | 3,860,267 | ||||||||||||||||||||||||
Net interest income:
|
||||||||||||||||||||||||||||
Interest rate spread
|
3.88 | % | $ | 122,043 | 4.65 | % | $ | 119,098 | 4.51 | % | ||||||||||||||||||
Net interest margin*
|
4.75 | % | 4.60 | % | ||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
121.0 | % | 114.6 | % |
(1)
|
The yield/rate on loans at September 30, 2014, does not include the impact of the adjustments to the accretable yield (income) on loans acquired in the FDIC-assisted transactions. See “Net Interest Income” for a discussion of the effect on results of operations for the nine months ended September 30, 2014.
|