Montana | 000-18911 | 81-0519541 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
49 Commons Loop, Kalispell, Montana | 59901 |
(Address of principal executive offices) | (Zip Code) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | 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 (17 CFR 240.13e-4(c)) |
(d) | Exhibit 99.1 - Press Release dated July 24, 2014, announcing financial results for the quarter ended June 30, 2014. |
Glacier Bancorp, Inc. | ||
(Registrant) | ||
July 24, 2014 | /s/ MICHAEL J. BLODNICK | |
(Date) | Michael J. Blodnick President and Chief Executive Officer |
• | All time record net income of $28.7 million for the current quarter, an increase of 7 percent from the prior quarter net income of $26.7 million and an increase of 26 percent from the prior year second quarter net income of $22.7 million. |
• | Current quarter diluted earnings per share of $0.38, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.31. |
• | The loan portfolio increased $115 million, or 3 percent, during the current quarter. Excluding acquisitions, the loan portfolio increased $314 million, or 9 percent, from the prior year second quarter. |
• | Non-interest bearing deposits increased $68.7 million, or 5 percent, during the current quarter. Excluding acquisitions, non-interest bearing deposits increased $153 million, or 12 percent, from the prior year second quarter. |
• | Current quarter service charges and other fees of $13.5 million, increased $1.3 million, or 11 percent from prior quarter and increased $1.7 million, or 15 percent from the prior year second quarter. |
• | Early stage delinquencies (accruing loans 30-89 days past due) decreased $24.3 million to $18.6 million during the current quarter and decreased $3.4 million, or 16 percent, from the prior year second quarter. |
• | Dividend declared of $0.17 per share during the current quarter, an increase of $0.01 per share, or 6 percent, over the prior quarter. The dividend was the 117th consecutive quarterly dividend declared by the Company. |
• | Announced the definitive agreement to acquire First National Bank of the Rockies, a community bank based in Grand Junction, Colorado, with total assets of $345 million at June 30, 2014. |
Three Months ended | Six Months ended | ||||||||||||||
(Dollars in thousands, except per share data) | June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||
Net income | $ | 28,677 | 26,730 | 22,702 | 55,407 | 43,470 | |||||||||
Diluted earnings per share | $ | 0.38 | 0.36 | 0.31 | 0.74 | 0.60 | |||||||||
Return on average assets (annualized) | 1.47 | % | 1.39 | % | 1.17 | % | 1.43 | % | 1.14 | % | |||||
Return on average equity (annualized) | 11.45 | % | 11.04 | % | 9.78 | % | 11.25 | % | 9.49 | % |
$ Change from | |||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | ||||||||||||||
Cash and cash equivalents | $ | 202,358 | 161,691 | 155,657 | 132,456 | 40,667 | 46,701 | 69,902 | |||||||||||||
Investment securities, available-for-sale | 2,559,411 | 2,669,180 | 3,222,829 | 3,721,377 | (109,769 | ) | (663,418 | ) | (1,161,966 | ) | |||||||||||
Investment securities, held-to-maturity | 483,557 | 481,476 | — | — | 2,081 | 483,557 | 483,557 | ||||||||||||||
Total investment securities | 3,042,968 | 3,150,656 | 3,222,829 | 3,721,377 | (107,688 | ) | (179,861 | ) | (678,409 | ) | |||||||||||
Loans receivable | |||||||||||||||||||||
Residential real estate | 587,340 | 580,306 | 577,589 | 531,834 | 7,034 | 9,751 | 55,506 | ||||||||||||||
Commercial | 3,023,915 | 2,928,995 | 2,901,283 | 2,544,787 | 94,920 | 122,632 | 479,128 | ||||||||||||||
Consumer and other | 592,024 | 579,328 | 583,966 | 596,835 | 12,696 | 8,058 | (4,811 | ) | |||||||||||||
Loans receivable | 4,203,279 | 4,088,629 | 4,062,838 | 3,673,456 | 114,650 | 140,441 | 529,823 | ||||||||||||||
Allowance for loan and lease losses | (130,636 | ) | (130,729 | ) | (130,351 | ) | (130,883 | ) | 93 | (285 | ) | 247 | |||||||||
Loans receivable, net | 4,072,643 | 3,957,900 | 3,932,487 | 3,542,573 | 114,743 | 140,156 | 530,070 | ||||||||||||||
Other assets | 572,125 | 560,476 | 573,377 | 600,410 | 11,649 | (1,252 | ) | (28,285 | ) | ||||||||||||
Total assets | $ | 7,890,094 | 7,830,723 | 7,884,350 | 7,996,816 | 59,371 | 5,744 | (106,722 | ) |
At or for the Six Months ended | At or for the Three Months ended | At or for the Year ended | At or for the Six Months ended | |||||||||
(Dollars in thousands) | June 30, 2014 | March 31, 2014 | December 31, 2013 | June 30, 2013 | ||||||||
Allowance for loan and lease losses | ||||||||||||
Balance at beginning of period | $ | 130,351 | 130,351 | 130,854 | 130,854 | |||||||
Provision for loan losses | 1,361 | 1,122 | 6,887 | 3,178 | ||||||||
Charge-offs | (3,324 | ) | (1,586 | ) | (13,643 | ) | (5,885 | ) | ||||
Recoveries | 2,248 | 842 | 6,253 | 2,736 | ||||||||
Balance at end of period | $ | 130,636 | 130,729 | 130,351 | 130,883 | |||||||
Other real estate owned | $ | 26,338 | 27,332 | 26,860 | 40,713 | |||||||
Accruing loans 90 days or more past due | 980 | 569 | 604 | 456 | ||||||||
Non-accrual loans | 75,147 | 78,905 | 81,956 | 89,355 | ||||||||
Total non-performing assets 1 | $ | 102,465 | 106,806 | 109,420 | 130,524 | |||||||
Non-performing assets as a percentage of subsidiary assets | 1.30 | % | 1.37 | % | 1.39 | % | 1.64 | % | ||||
Allowance for loan and lease losses as a percentage of non-performing loans | 172 | % | 164 | % | 158 | % | 146 | % | ||||
Allowance for loan and lease losses as a percentage of total loans | 3.11 | % | 3.20 | % | 3.21 | % | 3.56 | % | ||||
Net charge-offs as a percentage of total loans | 0.03 | % | 0.02 | % | 0.18 | % | 0.09 | % | ||||
Accruing loans 30-89 days past due | $ | 18,592 | 42,862 | 32,116 | 22,062 | |||||||
Accruing troubled debt restructurings | $ | 73,981 | 77,311 | 81,110 | 80,453 | |||||||
Non-accrual troubled debt restructurings | $ | 35,786 | 37,113 | 42,461 | 45,428 |
(Dollars in thousands) | Provision for Loan Losses | Net Charge-Offs | ALLL as a Percent of Loans | Accruing Loans 30-89 Days Past Due as a Percent of Loans | Non-Performing Assets to Total Subsidiary Assets | ||||||||||
Second quarter 2014 | $ | 239 | 332 | 3.11 | % | 0.44 | % | 1.30 | % | ||||||
First quarter 2014 | 1,122 | 744 | 3.20 | % | 1.05 | % | 1.37 | % | |||||||
Fourth quarter 2013 | 1,802 | 2,216 | 3.21 | % | 0.79 | % | 1.39 | % | |||||||
Third quarter 2013 | 1,907 | 2,025 | 3.27 | % | 0.66 | % | 1.56 | % | |||||||
Second quarter 2013 | 1,078 | 1,030 | 3.56 | % | 0.60 | % | 1.64 | % | |||||||
First quarter 2013 | 2,100 | 2,119 | 3.84 | % | 0.95 | % | 1.79 | % | |||||||
Fourth quarter 2012 | 2,275 | 8,081 | 3.85 | % | 0.80 | % | 1.87 | % | |||||||
Third quarter 2012 | 2,700 | 3,499 | 4.01 | % | 0.83 | % | 2.33 | % |
$ Change from | |||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | ||||||||||||||
Non-interest bearing deposits | $ | 1,464,938 | 1,396,272 | 1,374,419 | 1,236,104 | 68,666 | 90,519 | 228,834 | |||||||||||||
Interest bearing deposits | 4,280,898 | 4,228,193 | 4,205,548 | 4,122,093 | 52,705 | 75,350 | 158,805 | ||||||||||||||
Repurchase agreements | 315,240 | 327,322 | 313,394 | 300,024 | (12,082 | ) | 1,846 | 15,216 | |||||||||||||
FHLB advances | 607,305 | 686,744 | 840,182 | 1,217,445 | (79,439 | ) | (232,877 | ) | (610,140 | ) | |||||||||||
Other borrowed funds | 7,367 | 8,069 | 8,387 | 8,489 | (702 | ) | (1,020 | ) | (1,122 | ) | |||||||||||
Subordinated debentures | 125,633 | 125,597 | 125,562 | 125,490 | 36 | 71 | 143 | ||||||||||||||
Other liabilities | 78,698 | 73,566 | 53,608 | 58,169 | 5,132 | 25,090 | 20,529 | ||||||||||||||
Total liabilities | $ | 6,880,079 | 6,845,763 | 6,921,100 | 7,067,814 | 34,316 | (41,021 | ) | (187,735 | ) |
$ Change from | |||||||||||||||||||||
(Dollars in thousands, except per share data) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | ||||||||||||||
Common equity | $ | 985,809 | 969,672 | 953,605 | 905,620 | 16,137 | 32,204 | 80,189 | |||||||||||||
Accumulated other comprehensive income | 24,206 | 15,288 | 9,645 | 23,382 | 8,918 | 14,561 | 824 | ||||||||||||||
Total stockholders’ equity | 1,010,015 | 984,960 | 963,250 | 929,002 | 25,055 | 46,765 | 81,013 | ||||||||||||||
Goodwill and core deposit intangible, net | (137,815 | ) | (138,508 | ) | (139,218 | ) | (126,771 | ) | 693 | 1,403 | (11,044 | ) | |||||||||
Tangible stockholders’ equity | $ | 872,200 | 846,452 | 824,032 | 802,231 | 25,748 | 48,168 | 69,969 | |||||||||||||
Stockholders’ equity to total assets | 12.80 | % | 12.58 | % | 12.22 | % | 11.62 | % | |||||||||||||
Tangible stockholders’ equity to total tangible assets | 11.25 | % | 11.00 | % | 10.64 | % | 10.19 | % | |||||||||||||
Book value per common share | $ | 13.56 | 13.23 | 12.95 | 12.63 | 0.33 | 0.61 | 0.93 | |||||||||||||
Tangible book value per common share | $ | 11.71 | 11.37 | 11.08 | 10.91 | 0.34 | 0.63 | 0.80 | |||||||||||||
Market price per share at end of period | $ | 28.38 | 29.07 | 29.79 | 22.19 | (0.69 | ) | (1.41 | ) | 6.19 |
Three Months ended | |||||||||||
(Dollars in thousands) | June 30, 2014 | March 31, 2014 | June 30, 2013 | ||||||||
Net interest income | |||||||||||
Interest income | $ | 73,963 | 74,087 | 62,151 | |||||||
Interest expense | 6,528 | 6,640 | 7,185 | ||||||||
Total net interest income | 67,435 | 67,447 | 54,966 | ||||||||
Non-interest income | |||||||||||
Service charges, loan fees, and other fees | 14,747 | 13,248 | 12,971 | ||||||||
Gain on sale of loans | 4,778 | 3,595 | 7,472 | ||||||||
(Loss) gain on sale of investments | (48 | ) | (51 | ) | 241 | ||||||
Other income | 3,027 | 2,596 | 2,538 | ||||||||
Total non-interest income | 22,504 | 19,388 | 23,222 | ||||||||
$ | 89,939 | 86,835 | 78,188 | ||||||||
Net interest margin (tax-equivalent) | 3.99 | % | 4.02 | % | 3.30 | % |
$ Change from | $ Change from | % Change from | % Change from | ||||||||||
(Dollars in thousands) | March 31, 2014 | June 30, 2013 | March 31, 2014 | June 30, 2013 | |||||||||
Net interest income | |||||||||||||
Interest income | $ | (124 | ) | $ | 11,812 | — | % | 19 | % | ||||
Interest expense | (112 | ) | (657 | ) | (2 | )% | (9 | )% | |||||
Total net interest income | (12 | ) | 12,469 | — | % | 23 | % | ||||||
Non-interest income | |||||||||||||
Service charges, loan fees, and other fees | 1,499 | 1,776 | 11 | % | 14 | % | |||||||
Gain on sale of loans | 1,183 | (2,694 | ) | 33 | % | (36 | )% | ||||||
(Loss) gain on sale of investments | 3 | (289 | ) | (6 | )% | (120 | )% | ||||||
Other income | 431 | 489 | 17 | % | 19 | % | |||||||
Total non-interest income | 3,116 | (718 | ) | 16 | % | (3 | )% | ||||||
$ | 3,104 | $ | 11,751 | 4 | % | 15 | % |
Three Months ended | |||||||||||
(Dollars in thousands) | June 30, 2014 | March 31, 2014 | June 30, 2013 | ||||||||
Compensation and employee benefits | $ | 28,988 | 28,634 | 24,917 | |||||||
Occupancy and equipment | 6,733 | 6,613 | 5,906 | ||||||||
Advertising and promotions | 1,948 | 1,777 | 1,621 | ||||||||
Outsourced data processing | 2,032 | 1,288 | 813 | ||||||||
Other real estate owned | 566 | 507 | 2,968 | ||||||||
Regulatory assessments and insurance | 1,028 | 1,592 | 1,525 | ||||||||
Core deposit intangibles amortization | 693 | 710 | 505 | ||||||||
Other expense | 10,685 | 8,949 | 10,226 | ||||||||
Total non-interest expense | $ | 52,673 | 50,070 | 48,481 |
$ Change from | $ Change from | % Change from | % Change from | ||||||||||
(Dollars in thousands) | March 31, 2014 | June 30, 2013 | March 31, 2014 | June 30, 2013 | |||||||||
Compensation and employee benefits | $ | 354 | $ | 4,071 | 1 | % | 16 | % | |||||
Occupancy and equipment | 120 | 827 | 2 | % | 14 | % | |||||||
Advertising and promotions | 171 | 327 | 10 | % | 20 | % | |||||||
Outsourced data processing | 744 | 1,219 | 58 | % | 150 | % | |||||||
Other real estate owned | 59 | (2,402 | ) | 12 | % | (81 | )% | ||||||
Regulatory assessments and insurance | (564 | ) | (497 | ) | (35 | )% | (33 | )% | |||||
Core deposit intangibles amortization | (17 | ) | 188 | (2 | )% | 37 | % | ||||||
Other expense | 1,736 | 459 | 19 | % | 4 | % | |||||||
Total non-interest expense | $ | 2,603 | $ | 4,192 | 5 | % | 9 | % |
Six Months ended | ||||||||||||||
(Dollars in thousands) | June 30, 2014 | June 30, 2013 | $ Change | % Change | ||||||||||
Net interest income | ||||||||||||||
Interest income | $ | 148,050 | $ | 120,106 | $ | 27,944 | 23 | % | ||||||
Interest expense | 13,168 | 14,643 | (1,475 | ) | (10 | )% | ||||||||
Total net interest income | 134,882 | 105,463 | 29,419 | 28 | % | |||||||||
Non-interest income | ||||||||||||||
Service charges, loan fees, and other fees | 27,995 | 24,646 | 3,349 | 14 | % | |||||||||
Gain on sale of loans | 8,373 | 16,561 | (8,188 | ) | (49 | )% | ||||||||
(Loss) gain on sale of investments | (99 | ) | 104 | (203 | ) | (195 | )% | |||||||
Other income | 5,623 | 4,861 | 762 | 16 | % | |||||||||
Total non-interest income | 41,892 | 46,172 | (4,280 | ) | (9 | )% | ||||||||
$ | 176,774 | $ | 151,635 | $ | 25,139 | 17 | % | |||||||
Net interest margin (tax-equivalent) | 4.01 | % | 3.23 | % |
Six Months ended | ||||||||||||
(Dollars in thousands) | June 30, 2014 | June 30, 2013 | $ Change | % Change | ||||||||
Compensation and employee benefits | $ | 57,622 | 49,494 | 8,128 | 16 | % | ||||||
Occupancy and equipment | 13,346 | 11,731 | 1,615 | 14 | % | |||||||
Advertising and promotions | 3,725 | 3,169 | 556 | 18 | % | |||||||
Outsourced data processing | 3,320 | 1,638 | 1,682 | 103 | % | |||||||
Other real estate owned | 1,073 | 3,852 | (2,779 | ) | (72 | )% | ||||||
Regulatory assessments and insurance | 2,620 | 3,166 | (546 | ) | (17 | )% | ||||||
Core deposit intangibles amortization | 1,403 | 991 | 412 | 42 | % | |||||||
Other expense | 19,634 | 17,874 | 1,760 | 10 | % | |||||||
Total non-interest expense | $ | 102,743 | 91,915 | 10,828 | 12 | % |
• | the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio, including as a result of a slow recovery in the housing and real estate markets in its geographic areas; |
• | increased loan delinquency rates; |
• | the risks presented by a slow economic recovery which could adversely affect credit quality, loan collateral values, OREO values, investment values, liquidity and capital levels, dividends and loan originations; |
• | changes in market interest rates, which could adversely affect the Company’s net interest income and profitability; |
• | legislative or regulatory changes that adversely affect the Company’s business, ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations; |
• | costs or difficulties related to the completion and integration of acquisitions; |
• | the goodwill the Company has recorded in connection with acquisitions could become additionally impaired, which may have an adverse impact on earnings and capital; |
• | reduced demand for banking products and services; |
• | the risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital in the future; |
• | consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions which may have greater resources could change the competitive landscape; |
• | dependence on the CEO, the senior management team and the Presidents of the Bank divisions; |
• | potential interruption or breach in security of the Company’s systems; and |
• | the Company’s success in managing risks involved in the foregoing. |
(Dollars in thousands, except per share data) | June 30, 2014 | March 31, 2014 | December 31, 2013 | June 30, 2013 | ||||||||
Assets | ||||||||||||
Cash on hand and in banks | $ | 130,114 | 116,267 | 109,995 | 105,272 | |||||||
Federal funds sold | 2,852 | 14,055 | 10,527 | 6,375 | ||||||||
Interest bearing cash deposits | 69,392 | 31,369 | 35,135 | 20,809 | ||||||||
Cash and cash equivalents | 202,358 | 161,691 | 155,657 | 132,456 | ||||||||
Investment securities, available-for-sale | 2,559,411 | 2,669,180 | 3,222,829 | 3,721,377 | ||||||||
Investment securities, held-to-maturity | 483,557 | 481,476 | — | — | ||||||||
Total investment securities | 3,042,968 | 3,150,656 | 3,222,829 | 3,721,377 | ||||||||
Loans held for sale | 56,021 | 36,133 | 46,738 | 95,495 | ||||||||
Loans receivable | 4,203,279 | 4,088,629 | 4,062,838 | 3,673,456 | ||||||||
Allowance for loan and lease losses | (130,636 | ) | (130,729 | ) | (130,351 | ) | (130,883 | ) | ||||
Loans receivable, net | 4,072,643 | 3,957,900 | 3,932,487 | 3,542,573 | ||||||||
Premises and equipment, net | 167,741 | 166,757 | 167,671 | 161,918 | ||||||||
Other real estate owned | 26,338 | 27,332 | 26,860 | 40,713 | ||||||||
Accrued interest receivable | 41,765 | 41,274 | 41,898 | 43,593 | ||||||||
Deferred tax asset | 34,505 | 39,997 | 43,549 | 35,115 | ||||||||
Core deposit intangible, net | 8,109 | 8,802 | 9,512 | 7,262 | ||||||||
Goodwill | 129,706 | 129,706 | 129,706 | 119,509 | ||||||||
Non-marketable equity securities | 52,715 | 52,192 | 52,192 | 49,752 | ||||||||
Other assets | 55,225 | 58,283 | 55,251 | 47,053 | ||||||||
Total assets | $ | 7,890,094 | 7,830,723 | 7,884,350 | 7,996,816 | |||||||
Liabilities | ||||||||||||
Non-interest bearing deposits | $ | 1,464,938 | 1,396,272 | 1,374,419 | 1,236,104 | |||||||
Interest bearing deposits | 4,280,898 | 4,228,193 | 4,205,548 | 4,122,093 | ||||||||
Securities sold under agreements to repurchase | 315,240 | 327,322 | 313,394 | 300,024 | ||||||||
Federal Home Loan Bank advances | 607,305 | 686,744 | 840,182 | 1,217,445 | ||||||||
Other borrowed funds | 7,367 | 8,069 | 8,387 | 8,489 | ||||||||
Subordinated debentures | 125,633 | 125,597 | 125,562 | 125,490 | ||||||||
Accrued interest payable | 3,163 | 3,173 | 3,505 | 3,824 | ||||||||
Other liabilities | 75,535 | 70,393 | 50,103 | 54,345 | ||||||||
Total liabilities | 6,880,079 | 6,845,763 | 6,921,100 | 7,067,814 | ||||||||
Stockholders’ Equity | ||||||||||||
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | — | — | — | — | ||||||||
Common stock, $0.01 par value per share, 117,187,500 shares authorized | 745 | 745 | 744 | 736 | ||||||||
Paid-in capital | 692,343 | 692,196 | 690,918 | 672,035 | ||||||||
Retained earnings - substantially restricted | 292,721 | 276,731 | 261,943 | 232,849 | ||||||||
Accumulated other comprehensive income | 24,206 | 15,288 | 9,645 | 23,382 | ||||||||
Total stockholders’ equity | 1,010,015 | 984,960 | 963,250 | 929,002 | ||||||||
Total liabilities and stockholders’ equity | $ | 7,890,094 | 7,830,723 | 7,884,350 | 7,996,816 | |||||||
Number of common stock shares issued and outstanding | 74,467,908 | 74,465,666 | 74,373,296 | 73,564,900 |
Three Months ended | Six Months ended | ||||||||||||||
(Dollars in thousands, except per share data) | June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||
Interest Income | |||||||||||||||
Residential real estate loans | $ | 7,220 | 7,087 | 7,026 | 14,307 | 14,286 | |||||||||
Commercial loans | 35,267 | 35,042 | 29,865 | 70,309 | 58,497 | ||||||||||
Consumer and other loans | 7,583 | 7,643 | 7,909 | 15,226 | 15,773 | ||||||||||
Investment securities | 23,893 | 24,315 | 17,351 | 48,208 | 31,550 | ||||||||||
Total interest income | 73,963 | 74,087 | 62,151 | 148,050 | 120,106 | ||||||||||
Interest Expense | |||||||||||||||
Deposits | 3,061 | 3,089 | 3,474 | 6,150 | 7,186 | ||||||||||
Securities sold under agreements to repurchase | 192 | 210 | 210 | 402 | 437 | ||||||||||
Federal Home Loan Bank advances | 2,447 | 2,514 | 2,648 | 4,961 | 5,299 | ||||||||||
Federal funds purchased and other borrowed funds | 48 | 53 | 54 | 101 | 106 | ||||||||||
Subordinated debentures | 780 | 774 | 799 | 1,554 | 1,615 | ||||||||||
Total interest expense | 6,528 | 6,640 | 7,185 | 13,168 | 14,643 | ||||||||||
Net Interest Income | 67,435 | 67,447 | 54,966 | 134,882 | 105,463 | ||||||||||
Provision for loan losses | 239 | 1,122 | 1,078 | 1,361 | 3,178 | ||||||||||
Net interest income after provision for loan losses | 67,196 | 66,325 | 53,888 | 133,521 | 102,285 | ||||||||||
Non-Interest Income | |||||||||||||||
Service charges and other fees | 13,547 | 12,219 | 11,818 | 25,766 | 22,404 | ||||||||||
Miscellaneous loan fees and charges | 1,200 | 1,029 | 1,153 | 2,229 | 2,242 | ||||||||||
Gain on sale of loans | 4,778 | 3,595 | 7,472 | 8,373 | 16,561 | ||||||||||
(Loss) gain on sale of investments | (48 | ) | (51 | ) | 241 | (99 | ) | 104 | |||||||
Other income | 3,027 | 2,596 | 2,538 | 5,623 | 4,861 | ||||||||||
Total non-interest income | 22,504 | 19,388 | 23,222 | 41,892 | 46,172 | ||||||||||
Non-Interest Expense | |||||||||||||||
Compensation and employee benefits | 28,988 | 28,634 | 24,917 | 57,622 | 49,494 | ||||||||||
Occupancy and equipment | 6,733 | 6,613 | 5,906 | 13,346 | 11,731 | ||||||||||
Advertising and promotions | 1,948 | 1,777 | 1,621 | 3,725 | 3,169 | ||||||||||
Outsourced data processing | 2,032 | 1,288 | 813 | 3,320 | 1,638 | ||||||||||
Other real estate owned | 566 | 507 | 2,968 | 1,073 | 3,852 | ||||||||||
Regulatory assessments and insurance | 1,028 | 1,592 | 1,525 | 2,620 | 3,166 | ||||||||||
Core deposit intangibles amortization | 693 | 710 | 505 | 1,403 | 991 | ||||||||||
Other expense | 10,685 | 8,949 | 10,226 | 19,634 | 17,874 | ||||||||||
Total non-interest expense | 52,673 | 50,070 | 48,481 | 102,743 | 91,915 | ||||||||||
Income Before Income Taxes | 37,027 | 35,643 | 28,629 | 72,670 | 56,542 | ||||||||||
Federal and state income tax expense | 8,350 | 8,913 | 5,927 | 17,263 | 13,072 | ||||||||||
Net Income | $ | 28,677 | 26,730 | 22,702 | 55,407 | 43,470 | |||||||||
Basic earnings per share | $ | 0.38 | 0.36 | 0.31 | 0.74 | 0.60 | |||||||||
Diluted earnings per share | $ | 0.38 | 0.36 | 0.31 | 0.74 | 0.60 | |||||||||
Dividends declared per share | $ | 0.17 | 0.16 | 0.15 | 0.33 | 0.29 | |||||||||
Average outstanding shares - basic | 74,467,576 | 74,437,393 | 72,480,019 | 74,452,568 | 72,224,263 | ||||||||||
Average outstanding shares - diluted | 74,499,660 | 74,480,818 | 72,548,172 | 74,491,459 | 72,282,104 |
Three Months ended | Six Months ended | ||||||||||||||||||||
June 30, 2014 | June 30, 2014 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Residential real estate loans | $ | 619,720 | 7,220 | 4.66 | % | $ | 614,655 | 14,307 | 4.66 | % | |||||||||||
Commercial loans | 2,934,715 | 35,267 | 4.82 | % | 2,908,530 | 70,309 | 4.87 | % | |||||||||||||
Consumer and other loans | 580,128 | 7,583 | 5.24 | % | 578,386 | 15,226 | 5.31 | % | |||||||||||||
Total loans 1 | 4,134,563 | 50,070 | 4.86 | % | 4,101,571 | 99,842 | 4.91 | % | |||||||||||||
Tax-exempt investment securities 2 | 1,197,586 | 16,890 | 5.64 | % | 1,194,649 | 33,658 | 5.63 | % | |||||||||||||
Taxable investment securities 3 | 1,998,096 | 12,558 | 2.51 | % | 2,049,494 | 25,622 | 2.50 | % | |||||||||||||
Total earning assets | 7,330,245 | 79,518 | 4.35 | % | 7,345,714 | 159,122 | 4.37 | % | |||||||||||||
Goodwill and intangibles | 138,187 | 138,542 | |||||||||||||||||||
Non-earning assets | 334,187 | 325,952 | |||||||||||||||||||
Total assets | $ | 7,802,619 | $ | 7,810,208 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 1,387,554 | — | — | % | $ | 1,358,805 | — | — | % | |||||||||||
NOW accounts | 1,093,724 | 270 | 0.10 | % | 1,095,567 | 604 | 0.11 | % | |||||||||||||
Savings accounts | 634,706 | 81 | 0.05 | % | 631,843 | 161 | 0.05 | % | |||||||||||||
Money market deposit accounts | 1,192,876 | 619 | 0.21 | % | 1,190,215 | 1,219 | 0.21 | % | |||||||||||||
Certificate accounts | 1,138,736 | 1,971 | 0.69 | % | 1,135,798 | 3,955 | 0.70 | % | |||||||||||||
Wholesale deposits 4 | 201,848 | 120 | 0.24 | % | 175,280 | 211 | 0.24 | % | |||||||||||||
FHLB advances | 666,819 | 2,447 | 1.45 | % | 745,882 | 4,961 | 1.32 | % | |||||||||||||
Repurchase agreements, federal funds purchased and other borrowed funds | 428,308 | 1,020 | 0.96 | % | 433,972 | 2,057 | 0.96 | % | |||||||||||||
Total funding liabilities | 6,744,571 | 6,528 | 0.39 | % | 6,767,362 | 13,168 | 0.39 | % | |||||||||||||
Other liabilities | 53,166 | 49,497 | |||||||||||||||||||
Total liabilities | 6,797,737 | 6,816,859 | |||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||
Common stock | 745 | 744 | |||||||||||||||||||
Paid-in capital | 692,157 | 691,893 | |||||||||||||||||||
Retained earnings | 289,984 | 282,466 | |||||||||||||||||||
Accumulated other comprehensive income | 21,996 | 18,246 | |||||||||||||||||||
Total stockholders’ equity | 1,004,882 | 993,349 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,802,619 | $ | 7,810,208 | |||||||||||||||||
Net interest income (tax-equivalent) | $ | 72,990 | $ | 145,954 | |||||||||||||||||
Net interest spread (tax-equivalent) | 3.96 | % | 3.98 | % | |||||||||||||||||
Net interest margin (tax-equivalent) | 3.99 | % | 4.01 | % |
1 | Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period. |
2 | Includes tax effect of $5.2 million and $10.3 million on tax-exempt investment security income for the three and six months ended June 30, 2014. |
3 | Includes tax effect of $371 thousand and $743 thousand on investment security tax credits for the three and six months ended June 30, 2014. |
4 | Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts. |
Loans Receivable, by Loan Type | % Change from | |||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | |||||||||||||||||
Custom and owner occupied construction | $ | 51,497 | $ | 44,333 | $ | 50,352 | $ | 35,529 | 16 | % | 2 | % | 45 | % | ||||||||||
Pre-sold and spec construction | 34,114 | 34,786 | 34,217 | 36,967 | (2 | )% | — | % | (8 | )% | ||||||||||||||
Total residential construction | 85,611 | 79,119 | 84,569 | 72,496 | 8 | % | 1 | % | 18 | % | ||||||||||||||
Land development | 81,589 | 82,275 | 73,132 | 77,080 | (1 | )% | 12 | % | 6 | % | ||||||||||||||
Consumer land or lots | 101,042 | 104,308 | 109,175 | 100,549 | (3 | )% | (7 | )% | — | % | ||||||||||||||
Unimproved land | 51,457 | 49,871 | 50,422 | 50,492 | 3 | % | 2 | % | 2 | % | ||||||||||||||
Developed lots for operative builders | 15,123 | 15,984 | 15,951 | 15,105 | (5 | )% | (5 | )% | — | % | ||||||||||||||
Commercial lots | 17,238 | 15,609 | 12,585 | 16,987 | 10 | % | 37 | % | 1 | % | ||||||||||||||
Other construction | 112,081 | 84,214 | 103,807 | 90,735 | 33 | % | 8 | % | 24 | % | ||||||||||||||
Total land, lot, and other construction | 378,530 | 352,261 | 365,072 | 350,948 | 7 | % | 4 | % | 8 | % | ||||||||||||||
Owner occupied | 816,859 | 812,727 | 811,479 | 753,692 | 1 | % | 1 | % | 8 | % | ||||||||||||||
Non-owner occupied | 617,693 | 611,093 | 588,114 | 475,991 | 1 | % | 5 | % | 30 | % | ||||||||||||||
Total commercial real estate | 1,434,552 | 1,423,820 | 1,399,593 | 1,229,683 | 1 | % | 2 | % | 17 | % | ||||||||||||||
Commercial and industrial | 549,143 | 523,071 | 523,354 | 470,178 | 5 | % | 5 | % | 17 | % | ||||||||||||||
Agriculture | 288,555 | 269,886 | 279,959 | 238,136 | 7 | % | 3 | % | 21 | % | ||||||||||||||
1st lien | 757,954 | 726,471 | 733,406 | 718,793 | 4 | % | 3 | % | 5 | % | ||||||||||||||
Junior lien | 73,130 | 71,012 | 73,348 | 77,359 | 3 | % | — | % | (5 | )% | ||||||||||||||
Total 1-4 family | 831,084 | 797,483 | 806,754 | 796,152 | 4 | % | 3 | % | 4 | % | ||||||||||||||
Multifamily residential | 152,169 | 143,438 | 123,154 | 107,437 | 6 | % | 24 | % | 42 | % | ||||||||||||||
Home equity lines of credit | 309,282 | 298,073 | 298,119 | 304,859 | 4 | % | 4 | % | 1 | % | ||||||||||||||
Other consumer | 134,414 | 131,030 | 130,758 | 123,947 | 3 | % | 3 | % | 8 | % | ||||||||||||||
Total consumer | 443,696 | 429,103 | 428,877 | 428,806 | 3 | % | 3 | % | 3 | % | ||||||||||||||
Other | 95,960 | 106,581 | 98,244 | 75,115 | (10 | )% | (2 | )% | 28 | % | ||||||||||||||
Total loans receivable, including loans held for sale | 4,259,300 | 4,124,762 | 4,109,576 | 3,768,951 | 3 | % | 4 | % | 13 | % | ||||||||||||||
Less loans held for sale 1 | (56,021 | ) | (36,133 | ) | (46,738 | ) | (95,495 | ) | 55 | % | 20 | % | (41 | )% | ||||||||||
Total loans receivable | $ | 4,203,279 | $ | 4,088,629 | $ | 4,062,838 | $ | 3,673,456 | 3 | % | 3 | % | 14 | % |
_______ |
1 Loans held for sale are primarily 1st lien 1-4 family loans. |
Non-performing Assets, by Loan Type | Non- Accrual Loans | Accruing Loans 90 Days or More Past Due | Other Real Estate Owned | ||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Jun 30, 2014 | Jun 30, 2014 | Jun 30, 2014 | ||||||||||||||
Custom and owner occupied construction | $ | 1,196 | 1,227 | 1,248 | 1,291 | 1,196 | — | — | |||||||||||||
Pre-sold and spec construction | 609 | 663 | 828 | 1,319 | 229 | — | 380 | ||||||||||||||
Total residential construction | 1,805 | 1,890 | 2,076 | 2,610 | 1,425 | — | 380 | ||||||||||||||
Land development | 23,718 | 24,555 | 25,062 | 26,004 | 14,821 | — | 8,897 | ||||||||||||||
Consumer land or lots | 2,804 | 3,169 | 2,588 | 5,475 | 1,992 | — | 812 | ||||||||||||||
Unimproved land | 12,421 | 12,965 | 13,630 | 15,611 | 11,529 | — | 892 | ||||||||||||||
Developed lots for operative builders | 2,186 | 2,157 | 2,215 | 2,093 | 1,558 | — | 628 | ||||||||||||||
Commercial lots | 2,787 | 2,842 | 2,899 | 3,185 | 282 | — | 2,505 | ||||||||||||||
Other construction | 5,156 | 5,168 | 5,167 | 5,532 | 167 | — | 4,989 | ||||||||||||||
Total land, lot and other construction | 49,072 | 50,856 | 51,561 | 57,900 | 30,349 | — | 18,723 | ||||||||||||||
Owner occupied | 14,595 | 14,625 | 14,270 | 16,503 | 13,192 | — | 1,403 | ||||||||||||||
Non-owner occupied | 3,956 | 3,563 | 4,301 | 5,091 | 2,914 | 39 | 1,003 | ||||||||||||||
Total commercial real estate | 18,551 | 18,188 | 18,571 | 21,594 | 16,106 | 39 | 2,406 | ||||||||||||||
Commercial and industrial | 5,850 | 5,030 | 6,400 | 7,103 | 5,083 | 532 | 235 | ||||||||||||||
Agriculture | 3,506 | 3,484 | 3,529 | 6,146 | 3,173 | 31 | 302 | ||||||||||||||
1st lien | 17,240 | 17,457 | 17,630 | 22,543 | 12,655 | 300 | 4,285 | ||||||||||||||
Junior lien | 1,146 | 4,947 | 4,767 | 5,819 | 1,132 | 14 | — | ||||||||||||||
Total 1-4 family | 18,386 | 22,404 | 22,397 | 28,362 | 13,787 | 314 | 4,285 | ||||||||||||||
Multifamily residential | 729 | 156 | — | 253 | 729 | — | — | ||||||||||||||
Home equity lines of credit | 4,289 | 4,434 | 4,544 | 6,107 | 4,242 | 47 | — | ||||||||||||||
Other consumer | 277 | 364 | 342 | 449 | 253 | 17 | 7 | ||||||||||||||
Total consumer | 4,566 | 4,798 | 4,886 | 6,556 | 4,495 | 64 | 7 | ||||||||||||||
Total | $ | 102,465 | 106,806 | 109,420 | 130,524 | 75,147 | 980 | 26,338 |
Accruing 30-89 Days Delinquent Loans, by Loan Type | % Change from | |||||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | |||||||||||||||||
Custom and owner occupied construction | $ | — | $ | 277 | $ | 202 | $ | — | (100 | )% | (100 | )% | n/m | |||||||||||
Pre-sold and spec construction | 144 | 101 | — | — | 43 | % | n/m | n/m | ||||||||||||||||
Total residential construction | 144 | 378 | 202 | — | (62 | )% | (29 | )% | n/m | |||||||||||||||
Consumer land or lots | 267 | 504 | 1,716 | 338 | (47 | )% | (84 | )% | (21 | )% | ||||||||||||||
Unimproved land | 899 | 420 | 615 | 341 | 114 | % | 46 | % | 164 | % | ||||||||||||||
Developed lots for operative builders | — | 1,163 | 8 | 146 | (100 | )% | (100 | )% | (100 | )% | ||||||||||||||
Total land, lot and other construction | 1,166 | 2,087 | 2,339 | 825 | (44 | )% | (50 | )% | 41 | % | ||||||||||||||
Owner occupied | 6,125 | 9,099 | 5,321 | 7,297 | (33 | )% | 15 | % | (16 | )% | ||||||||||||||
Non-owner occupied | 1,665 | 2,901 | 2,338 | 2,247 | (43 | )% | (29 | )% | (26 | )% | ||||||||||||||
Total commercial real estate | 7,790 | 12,000 | 7,659 | 9,544 | (35 | )% | 2 | % | (18 | )% | ||||||||||||||
Commercial and industrial | 2,528 | 6,192 | 3,542 | 3,844 | (59 | )% | (29 | )% | (34 | )% | ||||||||||||||
Agriculture | 497 | 2,710 | 1,366 | 169 | (82 | )% | (64 | )% | 194 | % | ||||||||||||||
1st lien | 2,408 | 15,018 | 12,386 | 2,807 | (84 | )% | (81 | )% | (14 | )% | ||||||||||||||
Junior lien | 536 | 503 | 482 | 980 | 7 | % | 11 | % | (45 | )% | ||||||||||||||
Total 1-4 family | 2,944 | 15,521 | 12,868 | 3,787 | (81 | )% | (77 | )% | (22 | )% | ||||||||||||||
Multifamily Residential | 689 | 1,535 | 1,075 | — | (55 | )% | (36 | )% | n/m | |||||||||||||||
Home equity lines of credit | 1,839 | 1,506 | 1,999 | 3,138 | 22 | % | (8 | )% | (41 | )% | ||||||||||||||
Other consumer | 938 | 933 | 1,066 | 755 | 1 | % | (12 | )% | 24 | % | ||||||||||||||
Total consumer | 2,777 | 2,439 | 3,065 | 3,893 | 14 | % | (9 | )% | (29 | )% | ||||||||||||||
Other | 57 | — | — | — | n/m | n/m | n/m | |||||||||||||||||
Total | $ | 18,592 | $ | 42,862 | $ | 32,116 | $ | 22,062 | (57 | )% | (42 | )% | (16 | )% |
_______ |
n/m - not measurable |
Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type | Charge-Offs | Recoveries | ||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Jun 30, 2013 | Jun 30, 2014 | Jun 30, 2014 | ||||||||||||
Custom and owner occupied construction | $ | — | — | (51 | ) | (1 | ) | — | — | |||||||||
Pre-sold and spec construction | (39 | ) | (16 | ) | (10 | ) | (16 | ) | — | 39 | ||||||||
Total residential construction | (39 | ) | (16 | ) | (61 | ) | (17 | ) | — | 39 | ||||||||
Land development | (333 | ) | 93 | (383 | ) | (76 | ) | 127 | 460 | |||||||||
Consumer land or lots | 97 | (69 | ) | 843 | 290 | 300 | 203 | |||||||||||
Unimproved land | (126 | ) | (5 | ) | 715 | 233 | 25 | 151 | ||||||||||
Developed lots for operative builders | (117 | ) | (17 | ) | (81 | ) | (11 | ) | 9 | 126 | ||||||||
Commercial lots | (3 | ) | (2 | ) | 248 | 251 | — | 3 | ||||||||||
Other construction | — | — | (473 | ) | (128 | ) | — | — | ||||||||||
Total land, lot and other construction | (482 | ) | — | 869 | 559 | 461 | 943 | |||||||||||
Owner occupied | (7 | ) | (18 | ) | 350 | (306 | ) | 47 | 54 | |||||||||
Non-owner occupied | (184 | ) | (185 | ) | 397 | 268 | 50 | 234 | ||||||||||
Total commercial real estate | (191 | ) | (203 | ) | 747 | (38 | ) | 97 | 288 | |||||||||
Commercial and industrial | 1,343 | 1,038 | 3,096 | 823 | 1,655 | 312 | ||||||||||||
Agriculture | — | — | 53 | 21 | — | — | ||||||||||||
1st lien | 298 | (199 | ) | 681 | 287 | 457 | 159 | |||||||||||
Junior lien | 91 | 38 | 106 | 56 | 275 | 184 | ||||||||||||
Total 1-4 family | 389 | (161 | ) | 787 | 343 | 732 | 343 | |||||||||||
Multifamily residential | 1 | 1 | (39 | ) | (31 | ) | 12 | 11 | ||||||||||
Home equity lines of credit | (120 | ) | 51 | 1,606 | 1,346 | 82 | 202 | |||||||||||
Other consumer | 175 | 34 | 324 | 141 | 284 | 109 | ||||||||||||
Total consumer | 55 | 85 | 1,930 | 1,487 | 366 | 311 | ||||||||||||
Other | — | — | 8 | 2 | 1 | 1 | ||||||||||||
Total | $ | 1,076 | 744 | 7,390 | 3,149 | 3,324 | 2,248 |