Attached files
| file | filename |
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| 8-K - 8-K - Independent Bank Group, Inc. | form8-kibgpressreleasejuly.htm |
Exhibit 99.1
Press Release
For Immediate Release
Independent Bank Group Reports
Second Quarter Financial Results
McKINNEY, Texas, July 25, 2016 /GlobeNewswire/ -- Independent Bank Group, Inc. (NASDAQ: IBTX), the holding company for Independent Bank, today announced net income available to common shareholders of $11.8 million, or $0.64 per diluted share, for the quarter ended June 30, 2016 compared to $10.5 million, or $0.61 per diluted share, for the quarter ended June 30, 2015 and $12.4 million, or $0.67 per diluted share, for the quarter ended March 31, 2016.
Highlights
• | Core earnings were $13.8 million, or $0.74 per diluted share, compared to $12.4 million, or $0.67 per diluted share, for first quarter 2016, representing an increase of 10.5% |
• | Annualized organic loan growth of 11.8% for the quarter and 13.2% year to date |
• | Credit quality metrics improved to historically low levels |
• | Significant paydowns in the energy portfolio reducing it to 2.9% of the total loan portfolio at quarter end |
• | Completed $45 million subordinated debt offering enhancing the Company's capital position |
Independent Bank Group Chairman and Chief Executive Officer David Brooks said, “This was another quarter of improved operating performance for our Company. Continued solid loan growth and improved credit metrics drove strong core earnings. We also strengthened our capital position with our recent issuance of subordinated debt. We believe that this quarter's results reflect our commitment to stronger earnings and enhancement of shareholder value.
Second Quarter 2016 Operating Results
Net Interest Income
• | Net interest income was $45.9 million for second quarter 2016 compared to $37.8 million for second quarter 2015 and $45.7 million for first quarter 2016. Net interest income increased compared to the linked quarter due to continued organic loan growth and despite significantly lower accretion income compared to first quarter 2016. The increase in net interest income from the previous year was primarily due to increased average loan balances resulting from organic loan growth as well as loans acquired in the Grand Bank acquisition in November 2015. |
• | The yield on interest-earning assets was 4.49% for second quarter 2016 compared to 4.64% for second quarter 2015 and 4.60% for first quarter 2016. The first quarter 2016 included unusually high accretion income of $1.3 million compared to only $265 thousand during second quarter 2016. In addition during first quarter 2016, $182 thousand in interest income was recognized resulting from the payoff of a nonaccrual loan as well as the collection of a $160 thousand extension fee on an energy credit that also increased the yield compared to the second quarter. The decrease in the rate from prior year is primarily due to decreased market rates over the year and also due in part to lower accretion income on acquired loans in the second quarter 2016 compared to the same period in 2015. |
• | The cost of interest bearing liabilities, including borrowings, was 0.66% for second quarter 2016 compared to 0.69% for second quarter 2015 and 0.65% for first quarter 2016. The decrease from the prior year is primarily due to the maturities of higher rate FHLB advances during 2015. The slight increase from the linked quarter is due to increased money market and CD costs. |
• | The net interest margin was 3.96% for second quarter 2016 compared to 4.10% for second quarter 2015 and 4.08% for first quarter 2016. The core margin, which excludes purchased loan accretion, was 3.94% for second quarter 2016 compared to 4.04% for second quarter 2015 and 3.96% for first quarter 2016. |
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• | The average balance of total interest-earning assets grew by $960.8 million and totaled $4.7 billion at June 30, 2016 compared to $3.7 billion at June 30, 2015 and grew by $155.8 million compared to $4.5 billion at March 31, 2016. This increase from prior year and the linked quarter is due to organic growth while the change from prior year is also due to loans acquired in the Grand Bank acquisition. |
Noninterest Income
• | Total noninterest income increased $820 thousand compared to second quarter 2015 and increased $459 thousand compared to first quarter 2016. |
• | The increase from the prior year reflects an increase of $592 thousand in mortgage fee income and a $275 thousand increase in other noninterest income. The increase in mortgage fee income is due to a decrease in mortgage rates and increased home purchase activity in the Dallas and Austin markets. The increase in other noninterest income from the prior year is primarily related to an increase in earning credits on correspondent accounts. |
• | The increase from the linked quarter primarily relates to an increase of $645 thousand in mortgage fee income offset by a decrease of $184 thousand in other noninterest income. The increase in mortgage fee income is explained above and the decrease in other noninterest expense is primarily due to a decrease of $291 thousand in income distributions from small business investment funds offset by an increase of $102 thousand in earning credits on correspondent accounts for the respective periods. |
Noninterest Expense
• | Total noninterest expense increased $6.6 million compared to second quarter 2015 and $2.5 million compared to first quarter 2016. |
• | The increase in noninterest expense compared to second quarter 2015 is due primarily to an increase of $4.9 million in salaries and benefits expense in addition to increases of $537 thousand in data processing expenses, $376 thousand in FDIC assessment, $300 thousand in professional fees and $303 thousand in other noninterest expense. Overall increases in noninterest expense from the prior year are generally due to the increase in number of employees and operating costs resulting from the Grand Bank transaction. The increase in salaries and benefits from the prior year is also due to compensation costs of approximately $2.6 million recognized during the second quarter relating to the Company's senior leadership restructure including $2 million for the former Houston Region CEO's Separation Agreement which was previously disclosed. The increase in professional fees is primarily due to increased legal fees on existing litigation inherited in the Bank of Houston transaction and legal fees related to energy loan workouts. |
• | The increase from the linked quarter is primarily related to increases of $2.8 million in salaries and benefits and $317 thousand in professional fees offset by a decrease of $549 thousand in acquisition fees. Salaries and benefits increased primarily due to the executive team restructure as discussed above. Professional fees increased during second quarter 2016 primarily because legal expenses related to the energy portfolio and the existing Bank of Houston litigation. Conversion-related acquisition expenses were lower in the second quarter as most of the expenses related to the November 2015 acquisition of Grand Bank were recognized in the first quarter of 2016. |
Provision for Loan Losses
• | Provision for loan loss expense was $2.1 million for the second quarter 2016, an increase of $464 thousand compared to $1.7 million for second quarter 2015 and decrease of $874 thousand compared to $3.0 million for the first quarter 2016. The provision expense for second quarter 2016 was based upon loan growth and net charge-offs for the quarter. It was lower compared to first quarter 2016 because it does not include a general provision to reflect potential risk in the energy portfolio that was made for this purpose in first quarter 2016. The provision expense is higher compared to second quarter 2015 due to higher organic loan growth experienced during second quarter 2016. |
• | The allowance for loan losses was $30.9 million, or 0.73% of total loans, at June 30, 2016, compared to $21.8 million, or 0.64% of total loans at June 30, 2015, and compared to $30.0 million, or 0.73% of total loans, at March 31, 2016. The maintenance of the allowance at the same percentage of total loans compared to first quarter 2016 reflects the improved credit metrics in the energy portfolio as well as the significant reduction in the total energy portfolio. The increase in the allowance from the prior year is due to additions to general reserves for organic loan growth, specific allocations on impaired assets, as well as an increase in general reserves for the energy portfolio. As of June 30, 2016, the total energy related allowance to the total energy portfolio was 6.8%. |
Income Taxes
• | Federal income tax expense of $5.9 million was recorded for the quarter ended June 30, 2016, an effective rate of 33.2%, compared to tax expense of $5.2 million and an effective rate of 33.0% for the quarter ended June 30, 2015 and tax expense of $6.2 million and an effective rate of 33.1% for the quarter ended March 31, 2016. |
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Second Quarter 2016 Balance Sheet Highlights:
Loans
• | Total loans held for investment were $4.251 billion at June 30, 2016 compared to $4.130 billion at March 31, 2016 and to $3.376 billion at June 30, 2015. This represented total loan growth of $121.0 million for the quarter, or 11.8% on an annualized basis. Loans have grown 13.2%, annualized, from December 31, 2015. |
• | Energy outstandings at the end of second quarter were $122.1 million (2.9% of total loans) versus $185.9 million at first quarter 2016, a reduction of 34.3%. The production portfolio, consisting of working interest and royalty credits, was $108.9 million (2.6% of total loans) made up of 21 credits and 20 relationships. Oil field service related loans represented an additional $13.2 million (0.3% of loans) and consisted of 25 borrowers. As of June 30, 2016, there were four nonperforming classified energy credits with balances totaling $11.7 million and three performing classified energy credits with a balance of $20.5 million. All energy related credits continue to be closely monitored and the Company is in close contact with borrowers to maintain a real time understanding of their current financial condition. |
Asset Quality
• | Total nonperforming assets decreased to $18.7 million, or 0.34% of total assets at June 30, 2016 from $32.7 million, or 0.62% of total assets at March 31, 2016 and increased slightly from $16.3 million, or 0.37% of total assets at June 30, 2015. |
• | Total nonperforming loans decreased to $17.2 million, or 0.40% of total loans at June 30, 2016 compared to $29.9 million, or 0.72% of total loans at March 31, 2016 and increased from $13.3 million, or 0.40% of total loans at June 30, 2015. |
• | The decrease in nonperforming assets and nonperforming loans from the linked quarter is primarily due to the pay-off of a $17.1 million energy loan participation that had been placed on nonaccrual during the first quarter 2016. |
• | Charge-offs were 0.11% annualized in the second quarter 2016 compared to 0.01% annualized in the linked and prior year quarters. The increase in charge-offs for the current quarter is primarily due a $925 thousand charge-off related to the $17.1 million energy loan discussed above, which was paid off at a discount during the second quarter 2016. |
Deposits and Borrowings
• | Total deposits were $4.208 billion at June 30, 2016 compared to $4.172 billion at March 31, 2016 and compared to $3.467 billion at June 30, 2015. |
• | Total borrowings (other than junior subordinated debentures) were $578.2 million at June 30, 2016, an increase of $133.4 million from March 31, 2016 and an increase of $306.7 million from June 30, 2015. These changes reflect the issuance of $43.4 million, net of discount and costs, of our 5.875% subordinated debentures issued in second quarter 2016 with the remainder resulting from the use of short term FHLB advances during the applicable periods. |
Capital
• | The tangible common equity to tangible assets and the Tier 1 capital to average assets ratios were 6.88% and 7.42% (estimated), respectively, at June 30, 2016 compared to 6.86% and 7.36%, respectively, at March 31, 2016 and 7.11% and 8.40%, respectively, at June 30, 2015. The total stockholders’ equity to total assets ratio was 11.56%, 11.71% and 12.79% at June 30, 2016, March 31, 2016 and June 30, 2015, respectively. Total capital to risk weighted assets was 11.35% at June 30, 2016 (estimated) compared to 10.47% at March 31, 2016 and 12.05% at June 30, 2015. The respective changes in capital ratios from the previous year and the linked quarter is primarily due to the redemption of the SBLF preferred stock in January 2016 and the issuance of $45 million subordinated debentures in June 2016. |
• | Book value and tangible book value per common share were $34.08 and $19.28, respectively, at June 30, 2016 compared to $33.38 and $18.54, respectively, at March 31, 2016 and $31.30 and $17.18, respectively, at June 30, 2015. |
• | Return on tangible equity (on an annualized basis) was 13.52% for the second quarter 2016 compared to 14.57% and 14.48% for the first quarter 2016 and second quarter 2015, respectively. |
• | Return on average assets and return on average equity (on an annualized basis) were 0.88% and 7.60%, respectively, for second quarter 2016 compared to 0.95% and 8.10%, respectively, for first quarter 2016 and 0.99% and 7.91%, respectively, for second quarter 2015. Ratios for the second quarter 2016 were negatively impacted by $2.6 million in additional compensation costs related to the senior leadership changes during the second quarter 2016. |
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About Independent Bank Group
Independent Bank Group, through its wholly owned subsidiary, Independent Bank, provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. Independent Bank Group operates 42 banking offices in three market regions located in the Dallas/Fort Worth, Austin and Houston, Texas areas.
Conference Call
A conference call covering Independent Bank Group’s second quarter earnings announcement will be held on Tuesday, July 26, 2016 at 8:30 a.m. (EDT) and can be accessed by calling 1-877-303-7611 and by identifying the conference ID number 46069669. A recording of the conference call will be available from July 26, 2016 through August 2, 2016 by accessing our website, www.ibtx.com.
Forward-Looking Statements
The numbers as of and for the quarter ended June 30, 2016 are unaudited. From time to time, our comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “forecast,” “guidance,” “intends,” “targeted,” “continue,” “remain,” “should,” “may,” “plans,” “estimates,” “will,” “will continue,” “will remain,” variations on such words or phrases, or similar references to future occurrences or events in future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives, and expectations of Independent Bank Group or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Independent Bank Group’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Independent Bank Group’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; (2) volatility and disruption in national and international financial markets; (3) government intervention in the U.S. financial system, whether through changes in the discount rate or money supply or otherwise; (4) changes in the level of nonperforming assets and charge-offs; (5) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (6) adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (7) inflation, deflation, changes in market interest rates, developments in the securities market, and monetary fluctuations; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by customers; (9) changes in consumer spending, borrowings, and savings habits; (10) technological changes; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, bank holding companies, and other financial service providers; (13) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply; (14) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; (15) the costs and effects of legal and regulatory developments including the resolution of legal proceedings; and (16) our success at managing the risks involved in the foregoing items and (17) the other factors that are described in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, the Annual Report on Form 10-K filed on February 25, 2016, or the Prospectus Supplement filed pursuant to Rule 424(b)(5) on June 23, 2016, under the heading “Risk Factors”, and other reports and statements filed by the Company with the SEC. Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
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Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. These measures and ratios include “core earnings”, “tangible book value”, “tangible book value per common share”, “core efficiency ratio”, “Tier 1 capital to average assets”, “Tier 1 capital to risk weighted assets”, “tangible common equity to tangible assets”, “net interest margin excluding purchase accounting accretion”, "return on tangible equity", “adjusted return on average assets” and “adjusted return on average equity” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States. We consider the use of select non-GAAP financial measures and ratios to be useful for financial operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non- GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for loan losses and the effect of goodwill, core deposit intangibles and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non- GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.
Contacts:
Analysts/Investors:
Torry Berntsen President (972) 562-9004 tberntsen@ibtx.com | Michelle Hickox Executive Vice President and Chief Financial Officer (972) 562-9004 mhickox@ibtx.com |
Media:
Peggy Smolen Marketing Director (972) 562-9004 psmolen@ibtx.com |
Source: Independent Bank Group, Inc.
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Independent Bank Group, Inc. and Subsidiaries
Consolidated Financial Data
Three Months Ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015
(Dollars in thousands, except for share data)
(Unaudited)
As of and for the quarter ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Selected Income Statement Data | |||||||||||||||||||
Interest income | $ | 51,941 | $ | 51,464 | $ | 47,414 | $ | 43,130 | $ | 42,747 | |||||||||
Interest expense | 6,058 | 5,804 | 5,263 | 5,041 | 4,967 | ||||||||||||||
Net interest income | 45,883 | 45,660 | 42,151 | 38,089 | 37,780 | ||||||||||||||
Provision for loan losses | 2,123 | 2,997 | 1,970 | 3,932 | 1,659 | ||||||||||||||
Net interest income after provision for loan losses | 43,760 | 42,663 | 40,181 | 34,157 | 36,121 | ||||||||||||||
Noninterest income | 4,929 | 4,470 | 4,254 | 3,799 | 4,109 | ||||||||||||||
Noninterest expense | 31,023 | 28,519 | 28,527 | 25,830 | 24,455 | ||||||||||||||
Income tax expense | 5,857 | 6,162 | 5,347 | 3,924 | 5,204 | ||||||||||||||
Net income | 11,809 | 12,452 | 10,561 | 8,202 | 10,571 | ||||||||||||||
Preferred stock dividends | — | 8 | 60 | 60 | 60 | ||||||||||||||
Net income available to common shareholders | 11,809 | 12,444 | 10,501 | 8,142 | 10,511 | ||||||||||||||
Core net interest income (1) | 45,618 | 44,327 | 41,635 | 38,001 | 37,225 | ||||||||||||||
Core Pre-Tax Pre-Provision Earnings (1) | 22,713 | 21,590 | 18,875 | 17,123 | 17,379 | ||||||||||||||
Core Earnings (1) | 13,764 | 12,438 | 11,377 | 8,917 | 10,532 | ||||||||||||||
Per Share Data (Common Stock) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Basic | $ | 0.64 | $ | 0.67 | $ | 0.58 | $ | 0.48 | $ | 0.61 | |||||||||
Diluted | 0.64 | 0.67 | 0.58 | 0.47 | 0.61 | ||||||||||||||
Core earnings: | |||||||||||||||||||
Basic (1) | 0.75 | 0.67 | 0.63 | 0.52 | 0.62 | ||||||||||||||
Diluted (1) | 0.74 | 0.67 | 0.63 | 0.52 | 0.61 | ||||||||||||||
Dividends | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
Book value | 34.08 | 33.38 | 32.79 | 31.81 | 31.30 | ||||||||||||||
Tangible book value (1) | 19.28 | 18.54 | 17.85 | 17.72 | 17.18 | ||||||||||||||
Common shares outstanding | 18,475,978 | 18,461,480 | 18,399,194 | 17,111,394 | 17,108,394 | ||||||||||||||
Weighted average basic shares outstanding (4) | 18,469,182 | 18,444,284 | 17,965,055 | 17,110,090 | 17,111,958 | ||||||||||||||
Weighted average diluted shares outstanding (4) | 18,547,074 | 18,528,031 | 18,047,960 | 17,199,281 | 17,198,981 | ||||||||||||||
Selected Period End Balance Sheet Data | |||||||||||||||||||
Total assets | $ | 5,446,797 | $ | 5,261,967 | $ | 5,055,000 | $ | 4,478,339 | $ | 4,375,727 | |||||||||
Cash and cash equivalents | 436,605 | 356,526 | 293,279 | 353,950 | 424,196 | ||||||||||||||
Securities available for sale | 287,976 | 302,650 | 273,463 | 200,188 | 180,465 | ||||||||||||||
Loans, held for sale | 13,942 | 8,515 | 12,299 | 6,218 | 7,237 | ||||||||||||||
Loans, held for investment | 4,251,457 | 4,130,496 | 3,989,405 | 3,529,275 | 3,375,553 | ||||||||||||||
Allowance for loan losses | 30,916 | 29,984 | 27,043 | 25,088 | 21,764 | ||||||||||||||
Goodwill and core deposit intangible | 273,480 | 273,972 | 275,000 | 241,171 | 241,534 | ||||||||||||||
Other real estate owned | 1,567 | 1,745 | 2,168 | 2,323 | 2,958 | ||||||||||||||
Noninterest-bearing deposits | 1,107,620 | 1,070,611 | 1,071,656 | 884,272 | 886,087 | ||||||||||||||
Interest-bearing deposits | 3,100,785 | 3,101,341 | 2,956,623 | 2,649,768 | 2,581,397 | ||||||||||||||
Borrowings (other than junior subordinated debentures) | 578,169 | 444,745 | 371,283 | 334,485 | 271,504 | ||||||||||||||
Junior subordinated debentures | 18,147 | 18,147 | 18,147 | 18,147 | 18,147 | ||||||||||||||
Series A Preferred Stock | — | — | 23,938 | 23,938 | 23,938 | ||||||||||||||
Total stockholders' equity | 629,628 | 616,258 | 603,371 | 568,257 | 559,447 | ||||||||||||||
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Independent Bank Group, Inc. and Subsidiaries
Consolidated Financial Data
Three Months Ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015
(Dollars in thousands, except for share data)
(Unaudited)
As of and for the quarter ended | ||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||
Selected Performance Metrics | ||||||||||||||
Return on average assets | 0.88 | % | 0.95 | % | 0.86 | % | 0.76 | % | 0.99 | % | ||||
Return on average equity (2) | 7.60 | 8.10 | 7.28 | 5.96 | 7.91 | |||||||||
Return on tangible equity (2) (5) | 13.52 | 14.57 | 13.37 | 10.75 | 14.48 | |||||||||
Adjusted return on average assets (1) | 1.03 | 0.95 | 0.93 | 0.83 | 0.99 | |||||||||
Adjusted return on average equity (1) (2) | 8.86 | 8.09 | 7.89 | 6.53 | 7.93 | |||||||||
Adjusted return on tangible equity (1) (2) (5) | 15.76 | 14.57 | 14.49 | 11.77 | 14.51 | |||||||||
Net interest margin | 3.96 | 4.08 | 3.96 | 4.08 | 4.10 | |||||||||
Adjusted net interest margin (3) | 3.94 | 3.96 | 3.91 | 4.07 | 4.04 | |||||||||
Efficiency ratio | 61.05 | 56.89 | 61.47 | 61.66 | 58.38 | |||||||||
Core efficiency ratio (1) | 55.05 | 55.68 | 58.75 | 59.25 | 57.81 | |||||||||
Credit Quality Ratios | ||||||||||||||
Nonperforming assets to total assets | 0.34 | % | 0.62 | % | 0.36 | % | 0.34 | % | 0.37 | % | ||||
Nonperforming loans to total loans | 0.40 | 0.72 | 0.37 | 0.33 | 0.40 | |||||||||
Nonperforming assets to total loans and other real estate | 0.44 | 0.79 | 0.45 | 0.43 | 0.48 | |||||||||
Allowance for loan losses to non-performing loans | 179.97 | 100.35 | 181.99 | 214.21 | 163.12 | |||||||||
Allowance for loan losses to total loans | 0.73 | 0.73 | 0.68 | 0.71 | 0.64 | |||||||||
Net charge-offs to average loans outstanding (annualized) | 0.11 | 0.01 | — | 0.07 | 0.01 | |||||||||
Capital Ratios | ||||||||||||||
Estimated common equity tier 1 capital to risk-weighted assets (1) | 7.89 | % | 7.92 | % | 7.94 | % | 8.26 | % | 8.33 | % | ||||
Estimated tier 1 capital to average assets | 7.42 | 7.36 | 8.28 | 8.67 | 8.40 | |||||||||
Estimated tier 1 capital to risk-weighted assets (1) | 8.27 | 8.32 | 8.92 | 9.37 | 9.49 | |||||||||
Estimated total capital to risk-weighted assets | 11.35 | 10.47 | 11.14 | 11.86 | 12.05 | |||||||||
Total stockholders' equity to total assets | 11.56 | 11.71 | 11.94 | 12.69 | 12.79 | |||||||||
Tangible common equity to tangible assets (1) | 6.88 | 6.86 | 6.87 | 7.15 | 7.11 | |||||||||
(1) Non-GAAP financial measures. See reconciliation. | ||||||||||||||
(2) Excludes average balance of Series A preferred stock. | ||||||||||||||
(3) Excludes income recognized on acquired loans of $265, $1,333, $516, $88, and $555, respectively. | ||||||||||||||
(4) Total number of shares includes participating shares (those with dividend rights). | ||||||||||||||
(5) Excludes average balance of goodwill and net core deposit intangibles. | ||||||||||||||
7
Independent Bank Group, Inc. and Subsidiaries
Consolidated Statements of Income
Three and Six Months Ended June 30, 2016 and 2015
(Dollars in thousands)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 50,418 | $ | 41,625 | $ | 100,328 | $ | 81,205 | ||||||||
Interest on taxable securities | 764 | 551 | 1,494 | 1,160 | ||||||||||||
Interest on nontaxable securities | 444 | 449 | 895 | 863 | ||||||||||||
Interest on federal funds sold and other | 315 | 122 | 688 | 255 | ||||||||||||
Total interest income | 51,941 | 42,747 | 103,405 | 83,483 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 3,923 | 3,018 | 7,574 | 5,727 | ||||||||||||
Interest on FHLB advances | 998 | 718 | 1,999 | 1,470 | ||||||||||||
Interest on repurchase agreements and other borrowings | 987 | 1,096 | 1,990 | 2,165 | ||||||||||||
Interest on junior subordinated debentures | 150 | 135 | 299 | 263 | ||||||||||||
Total interest expense | 6,058 | 4,967 | 11,862 | 9,625 | ||||||||||||
Net interest income | 45,883 | 37,780 | 91,543 | 73,858 | ||||||||||||
Provision for loan losses | 2,123 | 1,659 | 5,120 | 3,329 | ||||||||||||
Net interest income after provision for loan losses | 43,760 | 36,121 | 86,423 | 70,529 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 1,752 | 1,679 | 3,447 | 3,264 | ||||||||||||
Mortgage fee income | 2,021 | 1,429 | 3,397 | 2,729 | ||||||||||||
Gain on sale of other real estate | 10 | 49 | 53 | 179 | ||||||||||||
Gain on sale of securities available for sale | 4 | 90 | 4 | 90 | ||||||||||||
Gain on sale of premises and equipment | 3 | — | 41 | — | ||||||||||||
Increase in cash surrender value of BOLI | 270 | 268 | 535 | 538 | ||||||||||||
Other | 869 | 594 | 1,922 | 1,275 | ||||||||||||
Total noninterest income | 4,929 | 4,109 | 9,399 | 8,075 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 19,567 | 14,650 | 36,341 | 29,074 | ||||||||||||
Occupancy | 4,041 | 4,027 | 8,081 | 7,937 | ||||||||||||
Data processing | 1,203 | 666 | 2,385 | 1,354 | ||||||||||||
FDIC assessment | 869 | 493 | 1,595 | 1,012 | ||||||||||||
Advertising and public relations | 251 | 253 | 546 | 599 | ||||||||||||
Communications | 550 | 554 | 1,085 | 1,093 | ||||||||||||
Net other real estate owned expenses (including taxes) | 2 | 37 | 35 | 96 | ||||||||||||
Other real estate impairment | — | 25 | 55 | 25 | ||||||||||||
Core deposit intangible amortization | 492 | 367 | 980 | 739 | ||||||||||||
Professional fees | 977 | 677 | 1,637 | 1,167 | ||||||||||||
Acquisition expense, including legal | 90 | 28 | 729 | 500 | ||||||||||||
Other | 2,981 | 2,678 | 6,073 | 5,245 | ||||||||||||
Total noninterest expense | 31,023 | 24,455 | 59,542 | 48,841 | ||||||||||||
Income before taxes | 17,666 | 15,775 | $ | 36,280 | $ | 29,763 | ||||||||||
Income tax expense | 5,857 | 5,204 | $ | 12,019 | $ | 9,740 | ||||||||||
Net income | $ | 11,809 | $ | 10,571 | $ | 24,261 | $ | 20,023 | ||||||||
8
Consolidated Balance Sheets
As of June 30, 2016 and December 31, 2015
(Dollars in thousands, except share information)
(Unaudited)
June 30, | December 31, | ||||||
Assets | 2016 | 2015 | |||||
Cash and due from banks | $ | 153,975 | $ | 129,096 | |||
Interest-bearing deposits in other banks | 282,630 | 164,183 | |||||
Cash and cash equivalents | 436,605 | 293,279 | |||||
Certificates of deposit held in other banks | 12,886 | 61,746 | |||||
Securities available for sale | 287,976 | 273,463 | |||||
Loans held for sale | 13,942 | 12,299 | |||||
Loans, net of allowance for loan losses | 4,218,549 | 3,960,809 | |||||
Premises and equipment, net | 93,151 | 93,015 | |||||
Other real estate owned | 1,567 | 2,168 | |||||
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 26,379 | 14,256 | |||||
Bank-owned life insurance (BOLI) | 56,396 | 40,861 | |||||
Deferred tax asset | 5,192 | 5,892 | |||||
Goodwill | 258,319 | 258,643 | |||||
Core deposit intangible, net | 15,161 | 16,357 | |||||
Other assets | 20,674 | 22,212 | |||||
Total assets | $ | 5,446,797 | $ | 5,055,000 | |||
Liabilities, Temporary Equity and Stockholders’ Equity | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,107,620 | $ | 1,071,656 | |||
Interest-bearing | 3,100,785 | 2,956,623 | |||||
Total deposits | 4,208,405 | 4,028,279 | |||||
FHLB advances | 470,784 | 288,325 | |||||
Repurchase agreements | — | 12,160 | |||||
Other borrowings | 107,335 | 68,295 | |||||
Other borrowings, related parties | 50 | 2,503 | |||||
Junior subordinated debentures | 18,147 | 18,147 | |||||
Other liabilities | 12,448 | 9,982 | |||||
Total liabilities | 4,817,169 | 4,427,691 | |||||
Commitments and contingencies | |||||||
Temporary equity: Series A preferred stock | — | 23,938 | |||||
Stockholders’ equity: | |||||||
Common stock | 185 | 184 | |||||
Additional paid-in capital | 533,369 | 530,107 | |||||
Retained earnings | 91,997 | 70,698 | |||||
Accumulated other comprehensive income | 4,077 | 2,382 | |||||
Total stockholders’ equity | 629,628 | 603,371 | |||||
Total liabilities, temporary equity and stockholders’ equity | $ | 5,446,797 | $ | 5,055,000 | |||
9
Independent Bank Group, Inc. and Subsidiaries
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
Three Months Ended June 30, 2016 and 2015
(Dollars in thousands)
(Unaudited)
The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities for the periods presented.
Three Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 4,177,451 | $ | 50,418 | 4.85 | % | $ | 3,340,796 | $ | 41,625 | 5.00 | % | |||||||||
Taxable securities | 233,522 | 764 | 1.32 | 127,891 | 551 | 1.73 | |||||||||||||||
Nontaxable securities | 71,097 | 444 | 2.51 | 68,166 | 449 | 2.64 | |||||||||||||||
Federal funds sold and other | 174,227 | 315 | 0.73 | 158,626 | 122 | 0.31 | |||||||||||||||
Total interest-earning assets | 4,656,297 | $ | 51,941 | 4.49 | 3,695,479 | $ | 42,747 | 4.64 | |||||||||||||
Noninterest-earning assets | 711,638 | 563,855 | |||||||||||||||||||
Total assets | $ | 5,367,935 | $ | 4,259,334 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Checking accounts | $ | 1,770,050 | $ | 1,998 | 0.45 | % | $ | 1,316,477 | $ | 1,432 | 0.44 | % | |||||||||
Savings accounts | 149,349 | 66 | 0.18 | 142,948 | 67 | 0.19 | |||||||||||||||
Money market accounts | 401,386 | 452 | 0.45 | 255,235 | 179 | 0.28 | |||||||||||||||
Certificates of deposit | 806,403 | 1,407 | 0.70 | 857,438 | 1,340 | 0.63 | |||||||||||||||
Total deposits | 3,127,188 | 3,923 | 0.50 | 2,572,098 | 3,018 | 0.47 | |||||||||||||||
FHLB advances | 461,231 | 998 | 0.87 | 203,989 | 718 | 1.41 | |||||||||||||||
Other borrowings | 64,497 | 987 | 6.15 | 76,416 | 1,096 | 5.75 | |||||||||||||||
Junior subordinated debentures | 18,147 | 150 | 3.32 | 18,147 | 135 | 2.98 | |||||||||||||||
Total interest-bearing liabilities | 3,671,063 | 6,058 | 0.66 | 2,870,650 | 4,967 | 0.69 | |||||||||||||||
Noninterest-bearing checking accounts | 1,060,507 | 825,075 | |||||||||||||||||||
Noninterest-bearing liabilities | 11,384 | 6,956 | |||||||||||||||||||
Stockholders’ equity | 624,981 | 556,653 | |||||||||||||||||||
Total liabilities and equity | $ | 5,367,935 | $ | 4,259,334 | |||||||||||||||||
Net interest income | $ | 45,883 | $ | 37,780 | |||||||||||||||||
Interest rate spread | 3.83 | % | 3.95 | % | |||||||||||||||||
Net interest margin | 3.96 | 4.10 | |||||||||||||||||||
Average interest earning assets to interest bearing liabilities | 126.84 | 128.73 | |||||||||||||||||||
10
Independent Bank Group, Inc. and Subsidiaries
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
Six Months Ended June 30, 2016 and 2015
(Dollars in thousands)
(Unaudited)
The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities for the periods presented.
Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans | $ | 4,104,386 | $ | 100,328 | 4.92 | % | $ | 3,297,657 | $ | 81,205 | 4.97 | % | |||||||||
Taxable securities | 221,131 | 1,494 | 1.36 | 130,937 | 1,160 | 1.79 | |||||||||||||||
Nontaxable securities | 72,853 | 895 | 2.47 | 68,702 | 863 | 2.53 | |||||||||||||||
Federal funds sold and other | 180,041 | 688 | 0.77 | 150,343 | 255 | 0.34 | |||||||||||||||
Total interest-earning assets | 4,578,411 | $ | 103,405 | 4.54 | 3,647,639 | $ | 83,483 | 4.62 | |||||||||||||
Noninterest-earning assets | 726,698 | 549,604 | |||||||||||||||||||
Total assets | $ | 5,305,109 | $ | 4,197,243 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Checking accounts | $ | 1,681,673 | $ | 3,743 | 0.45 | % | $ | 1,291,995 | $ | 2,790 | 0.44 | % | |||||||||
Savings accounts | 146,832 | 130 | 0.18 | 143,349 | 132 | 0.19 | |||||||||||||||
Money market accounts | 453,001 | 911 | 0.40 | 245,963 | 279 | 0.23 | |||||||||||||||
Certificates of deposit | 815,878 | 2,790 | 0.69 | 838,212 | 2,526 | 0.61 | |||||||||||||||
Total deposits | 3,097,384 | 7,574 | 0.49 | 2,519,519 | 5,727 | 0.46 | |||||||||||||||
FHLB advances | 448,480 | 1,999 | 0.90 | 211,871 | 1,470 | 1.40 | |||||||||||||||
Other borrowings | 68,397 | 1,990 | 5.85 | 76,683 | 2,165 | 5.69 | |||||||||||||||
Junior subordinated debentures | 18,147 | 299 | 3.31 | 18,147 | 263 | 2.92 | |||||||||||||||
Total interest-bearing liabilities | 3,632,408 | 11,862 | 0.66 | 2,826,220 | 9,625 | 0.69 | |||||||||||||||
Noninterest-bearing checking accounts | 1,038,270 | 811,450 | |||||||||||||||||||
Noninterest-bearing liabilities | 11,202 | 7,746 | |||||||||||||||||||
Stockholders’ equity | 623,229 | 551,827 | |||||||||||||||||||
Total liabilities and equity | $ | 5,305,109 | $ | 4,197,243 | |||||||||||||||||
Net interest income | $ | 91,543 | $ | 73,858 | |||||||||||||||||
Interest rate spread | 3.88 | % | 3.93 | % | |||||||||||||||||
Net interest margin | 4.02 | 4.08 | |||||||||||||||||||
Average interest earning assets to interest bearing liabilities | 126.04 | 129.06 | |||||||||||||||||||
11
Independent Bank Group, Inc. and Subsidiaries
Loan Portfolio Composition
As of June 30, 2016 and December 31, 2015
(Dollars in thousands)
(Unaudited)
The following table sets forth loan totals by category as of the dates presented: | ||||||||||||||
June 30, 2016 | December 31, 2015 | |||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||
Commercial | $ | 636,557 | 14.9 | % | $ | 731,818 | 18.3 | % | ||||||
Real estate: | ||||||||||||||
Commercial real estate | 2,229,913 | 52.3 | 1,949,734 | 48.7 | ||||||||||
Commercial construction, land and land development | 444,738 | 10.4 | 419,611 | 10.5 | ||||||||||
Residential real estate (1) | 640,187 | 15.0 | 620,289 | 15.5 | ||||||||||
Single-family interim construction | 232,658 | 5.5 | 187,984 | 4.7 | ||||||||||
Agricultural | 48,976 | 1.1 | 50,178 | 1.3 | ||||||||||
Consumer | 32,233 | 0.8 | 41,966 | 1.0 | ||||||||||
Other | 137 | — | 124 | — | ||||||||||
Total loans | 4,265,399 | 100.0 | % | 4,001,704 | 100.0 | % | ||||||||
Deferred loan fees | (1,992 | ) | (1,553 | ) | ||||||||||
Allowance for losses | (30,916 | ) | (27,043 | ) | ||||||||||
Total loans, net | $ | 4,232,491 | $ | 3,973,108 | ||||||||||
(1) Includes loans held for sale at June 30, 2016 and December 31, 2015 of $13,942 and $12,299, respectively. | ||||||||||||||
12
Independent Bank Group, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Three Months Ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015
(Dollars in thousands, except for share data)
(Unaudited)
For the Three Months Ended | ||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||
Net Interest Income - Reported | (a) | $ | 45,883 | $ | 45,660 | $ | 42,151 | $ | 38,089 | $ | 37,780 | |||||
Income recognized on acquired loans | (265 | ) | (1,333 | ) | (516 | ) | (88 | ) | (555 | ) | ||||||
Adjusted Net Interest Income | (b) | 45,618 | 44,327 | 41,635 | 38,001 | 37,225 | ||||||||||
Provision Expense - Reported | (c) | 2,123 | 2,997 | 1,970 | 3,932 | 1,659 | ||||||||||
Noninterest Income - Reported | (d) | 4,929 | 4,470 | 4,254 | 3,799 | 4,109 | ||||||||||
Gain on sale of loans | — | — | — | (116 | ) | — | ||||||||||
Gain on sale of OREO and repossessed assets | (10 | ) | (48 | ) | (70 | ) | (41 | ) | (49 | ) | ||||||
Gain on sale of securities | (4 | ) | — | (44 | ) | — | (90 | ) | ||||||||
Gain on sale of premises and equipment | (3 | ) | (38 | ) | (16 | ) | 374 | — | ||||||||
Adjusted Noninterest Income | (e) | 4,912 | 4,384 | 4,124 | 4,016 | 3,970 | ||||||||||
Noninterest Expense - Reported | (f) | 31,023 | 28,519 | 28,527 | 25,830 | 24,455 | ||||||||||
Senior leadership restructure (6) | (2,575 | ) | — | — | — | — | ||||||||||
OREO Impairment | — | (55 | ) | — | (10 | ) | (25 | ) | ||||||||
IPO related stock grant | (156 | ) | (156 | ) | (156 | ) | (156 | ) | (156 | ) | ||||||
Acquisition Expense (5) | (475 | ) | (1,187 | ) | (1,487 | ) | (770 | ) | (458 | ) | ||||||
Adjusted Noninterest Expense | (g) | 27,817 | 27,121 | 26,884 | 24,894 | 23,816 | ||||||||||
Pre-Tax Pre-Provision Earnings | (a) + (d) - (f) | $ | 19,789 | $ | 21,611 | $ | 17,878 | $ | 16,058 | $ | 17,434 | |||||
Core Pre-Tax Pre-Provision Earnings | (b) + (e) - (g) | $ | 22,713 | $ | 21,590 | $ | 18,875 | $ | 17,123 | $ | 17,379 | |||||
Core Earnings (2) | (b) - (c) + (e) - (g) | $ | 13,764 | $ | 12,438 | $ | 11,377 | $ | 8,917 | $ | 10,532 | |||||
Reported Efficiency Ratio | (f) / (a + d) | 61.05 | % | 56.89 | % | 61.47 | % | 61.66 | % | 58.38 | % | |||||
Core Efficiency Ratio | (g) / (b + e) | 55.05 | % | 55.68 | % | 58.75 | % | 59.25 | % | 57.81 | % | |||||
Adjusted Return on Average Assets (1) | 1.03 | % | 0.95 | % | 0.93 | % | 0.83 | % | 0.99 | % | ||||||
Adjusted Return on Average Equity (1) | 8.86 | % | 8.09 | % | 7.89 | % | 6.53 | % | 7.93 | % | ||||||
Adjusted Return on Tangible Equity (1) | 15.76 | % | 14.57 | % | 14.49 | % | 11.77 | % | 14.51 | % | ||||||
Total Average Assets | $ | 5,367,935 | $ | 5,242,289 | $ | 4,847,375 | $ | 4,270,604 | $ | 4,259,334 | ||||||
Total Average Stockholders' Equity (3) | $ | 624,981 | $ | 618,059 | $ | 572,160 | $ | 541,939 | $ | 532,715 | ||||||
Total Average Tangible Stockholders' Equity (3) (4) | $ | 351,263 | $ | 343,418 | $ | 311,549 | $ | 300,578 | $ | 291,166 | ||||||
(1) Calculated using core earnings | ||||||||||||||||
(2) Assumes actual effective tax rate of 33.2%, 33.1%, 32.7%, 32.4%, and 33.0%, respectively. December 31, 2015 tax rate adjusted for effect of non-deductible acquisition expenses. | ||||||||||||||||
(3) Excludes average balance of Series A preferred stock. | ||||||||||||||||
(4) Excludes average balance of goodwill and net core deposit intangibles. | ||||||||||||||||
(5) Acquisition expenses include $385 thousand, $548 thousand, $860 thousand, $477 thousand, and $430 thousand of compensation and bonus expenses in addition to $90 thousand, $639 thousand, $627 thousand, $293 thousand, and $28 thousand of merger-related expenses for the quarters ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015 respectively. | ||||||||||||||||
(6) Includes $1,952 related to the former Houston Region CEO's Separation Agreement. | ||||||||||||||||
13
Independent Bank Group, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
As of June 30, 2016 and December 31, 2015
(Dollars in thousands, except per share information)
(Unaudited)
Tangible Book Value Per Common Share | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Tangible Common Equity | |||||||
Total common stockholders' equity | $ | 629,628 | $ | 603,371 | |||
Adjustments: | |||||||
Goodwill | (258,319 | ) | (258,643 | ) | |||
Core deposit intangibles, net | (15,161 | ) | (16,357 | ) | |||
Tangible common equity | $ | 356,148 | $ | 328,371 | |||
Tangible assets | $ | 5,173,317 | $ | 4,780,000 | |||
Common shares outstanding | 18,475,978 | 18,399,194 | |||||
Tangible common equity to tangible assets | 6.88 | % | 6.87 | % | |||
Book value per common share | $ | 34.08 | $ | 32.79 | |||
Tangible book value per common share | 19.28 | 17.85 | |||||
Tier 1 Common and Tier 1 Capital to Risk-Weighted Assets Ratio | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Tier 1 Common Equity | |||||||
Total common stockholders' equity - GAAP | $ | 629,628 | $ | 603,371 | |||
Adjustments: | |||||||
Unrealized gain on available-for-sale securities | (4,077 | ) | (2,382 | ) | |||
Goodwill | (258,319 | ) | (258,643 | ) | |||
Core deposit intangibles, net | (5,913 | ) | (4,253 | ) | |||
Tier 1 common equity | $ | 361,319 | $ | 338,093 | |||
Qualifying Restricted Core Capital Elements (junior subordinated debentures) | 17,600 | 17,600 | |||||
Series A Preferred Stock | — | 23,938 | |||||
Tier 1 Equity | $ | 378,919 | $ | 379,631 | |||
Total Risk-Weighted Assets | $ | 4,579,687 | $ | 4,256,662 | |||
Estimated tier 1 equity to risk-weighted assets ratio | 8.27 | % | 8.92 | % | |||
Estimated tier 1 common equity to risk-weighted assets ratio | 7.89 | 7.94 | |||||
14