Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - LegacyTexas Financial Group, Inc. | ex992-q32017_dividendannou.htm |
| EX-99.1 - EXHIBIT 99.1 - LegacyTexas Financial Group, Inc. | ex991-q32017_earningsrelea.htm |
| 8-K - 8-K - LegacyTexas Financial Group, Inc. | a8k-q32017_covererslides.htm |
October 25, 2017
EXHIBIT 99.3
Third Quarter 2017
Investor Presentation
2
Safe harbor statement
When used in filings by LegacyTexas Financial Group, Inc. (the "Company”) with the Securities and Exchange Commission (the “SEC”),
in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of an
authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,”
“project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical earnings and those presently anticipated or projected, including, among other things: the
expected cost savings, synergies and other financial benefits from acquisition or disposition transactions might not be realized
within the expected time frames or at all and costs or difficulties relating to integration matters might be greater than expected;
changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the
risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and
changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding;
fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits
in the Company's market area; fluctuations in the price of oil, natural gas and other commodities; competition; changes in
management’s business strategies and other factors set forth in the Company's filings with the SEC.
The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
THIRD QUARTER 2017
3
Today’s presenters
THIRD QUARTER 2017
Kevin Hanigan
President and Chief Executive Officer
• CEO and President of LegacyTexas Financial Group, Inc.
• Former Chairman and Chief Executive Officer of Highlands Bancshares in 2010
• Former Chairman and Chief Executive Officer of Guaranty Bank in 2009
• 36+ years of Texas banking experience
Mays Davenport
Executive Vice President, Chief Financial Officer
• Former Executive Vice President at LegacyTexas Bank
• Senior management experience for retail branch, treasury management, human resources, marketing,
mortgage, and wealth advisory functions
• Certified Public Accountant, former national accounting and tax advisory firm experience
• 24+ years of Texas banking experience
4
• Non-performing loans down $22.3 million from Q2 2017
• A $22.1 million decline in classified energy loans drove a $22.0 million decrease in classified
loans compared to Q3 2016
Asset quality
• Net income totaled $28.7 million, an increase of $774 thousand from Q2 2017 and $1.5
million from Q3 2016
• Company assets of $9.07 billion generated basic earnings per share for Q3 2017 of $0.61
• Loans held for investment3 grew $208.6 million from Q2 2017, while total deposits grew
$197.9 million for the same period
• Efficiency ratio improved to 44.19% compared to 44.96% for Q2 2017
North Texas
Focused
• #1 deposit market share among all banks in affluent Collin County
• #2 deposit market share among Dallas-based banks1 in the attractive DFW market, which is
home to 22 companies on the 2017 Fortune 500 list
• DFW hosts a diverse business environment across a broad set of industries, with 42% of
employment in the service-providing sector and less than 1% in oil and gas2
Capital
Key franchise highlights
Profitability levered excess capital while maintaining strong capital levels
• TCE / TA4: 8.7%
• Estimated Tier 1 common risk-based capital5: 9.17%
Source: Company Documents
1 Includes banks headquartered in the Dallas-Fort Worth-Arlington MSA
2 Represents latest available data from the Bureau of Labor Statistics for the Dallas-Fort Worth-Arlington, TX MSA (i.e., data as of Q1 2017)
3 Excludes Warehouse Purchase Program loans and loans held for sale
4 See the section labeled "Supplemental Information - Non-GAAP Financial Measures"
5 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve
THIRD QUARTER 2017 – FRANCHISE HIGHLIGHTS
Profitability
5
Third quarter highlights
($ in millions except for per share data) Quarter ended
September 30,
2016
June 30,
2017
September 30,
2017 Linked Q ∆ YOY ∆
Selected balance sheet data
Gross loans held for investment1 $ 5,757.2 $ 6,409.3 $ 6,617.9 3.3 % 14.9 %
Total deposits 6,128.1 6,562.5 6,760.4 3.0 % 10.3 %
Selected profitability data
Net interest income $ 73.5 $ 75.7 $ 79.0 4.3 % 7.5 %
NIM 3.78% 3.77% 3.71% -6bps -7bps
Non-interest income $ 11.3 $ 12.3 $ 12.2 (0.8)% 8.4 %
Non-interest expense 39.7 39.6 40.3 1.8 % 1.6 %
Net income 27.2 27.9 28.7 2.8 % 5.5 %
Core net income2 28.2 27.9 28.5 1.9 % 1.0 %
Basic EPS 0.59 0.60 0.61 1.7 % 3.4 %
Core EPS2 0.61 0.60 0.61 1.7 % — %
Source: Company Documents
1 Excludes Warehouse Purchase Program loans
2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures“
THIRD QUARTER 2017 – QUARTERLY HIGHLIGHTS
6
Originated loans
Acquired from LegacyTexas Group, Inc.
2012Y 2013Y 2014Y 2015Y 2016Y 2017 Q3
$1,691
$2,050
$2,634
$3,667
$6,065
$6,618
$1,400
Gross loans held for investment1 at Q3 2017 grew $208.6 million from Q2 2017,
which included growth in commercial real estate, construction and land, and
consumer real estate loans.
45.6%
23.4%
7.9%
4.3% 18.1%
0.7%
($ in millions)
Commercially focused loan portfolio
Source: Company Documents
1 Excludes Warehouse Purchase Program loans
2 Represents balance acquired on January 1, 2015
As of September 30, 20171
Total Loans HFI1
THIRD QUARTER 2017 – BALANCE SHEET
Commercial RE
C&I (ex-energy)
Energy
C&D
Consumer RE
Other Consumer
2
$5,067
Quarterly yield on loans held for investment1: 4.97%
7
• Reserve-based energy portfolio at
September 30, 2017 consisted of 53%
crude oil reserves and 47% natural gas
reserves
• At September 30, 2017, 55 reserve-
based borrowers and 3 midstream
borrowers
• $373 million, or 67%, of our
outstanding energy loans are backed by
private equity firms with significant
capital invested and additional equity
commitments available
Permian
Bakken
Eagle Ford
Ark-La-Tex
Mid-Con
Energy lending
Source: Company documents for loans managed by Energy Finance group
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – ENERGY LENDING
Geographic Concentration of
Reserves
Texas Panhandle
Marcellus
Gulf of Mexico
Central/Southern
Louisiana
Other
19%
9%
3%
10%
13%7%
9%
2%
3%
25%
8
2017 2018 2019
57%
44%
18%
63%
51%
25%
86% 86%
67%
91% 89%
70%
$3 $3 $3
$55 $53 $51
1 % of engineered PDP volumes
Source: Company documents for loans managed by Energy Finance group
• Reserve-based loans are almost exclusively first liens, with only a $5 million
commitment to a 2nd lien facility at September 30, 2017
• No unsecured commitments/exposure
• At September 30, 2017, only $1.2 million in outstanding loans to oil field service
companies, of which $32,000 are rated substandard
Energy lending
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – ENERGY LENDING
Hedging Percentages at September 30, 2017 compared to
June 30, 2017 with September 30, 2017 Weighted Average Prices1 SNC Breakout of
Reserve-Based Energy Loans
Non-LTXB
Led SNC
LTXB Led SNC Direct and Other
Participations
54%
4%
42%
June 30, 2017 September 30, 2017
Oil Oil
Gas Gas
9
Midstream Reserve-based Reserve %
2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3
$125.8
$141.8
$72.0
$59.6
$27.8
$76.8
$25.6
$22.0
$224.6
$67.6
$209.4
$75.3
$147.3
$74.4
$134.0
$51.0
$104.4
Energy lending
Source: Company documents
Outstanding loan balances and related loan loss reservesCriticized and classified energy loansR: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – ENERGY LENDING
($ in millions)($ in millions)
Energy
reserves $16.1 $19.2 $18.7 $24.6 $18.4
• The allowance for loan losses allocated to energy loans at September 30, 2017
totaled $18.4 million
• Criticized and classified energy loans at September 30, 2017 declined by $29.6
million from June 30, 2017, primarily due to the resolution of two reserve-based
energy relationships
Criticized Classified performing
Classified non-performing
2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3
$433.5
$527.2
$504.0 $515.5
$526.8
$53.9
$39.0
$43.1 $30.4 $27.8
3.3% 3.4% 3.4%
4.5%
3.3%
10
Collateral Mix of Houston Portfolio
• Continued low LTV in Houston CRE portfolio - 63% for entire Houston portfolio, 69% for energy
corridor only
• Low loan price per square foot - energy corridor ranges $56-$127 with average of $93
• Only one Houston area loss since the 2003 inception of CRE lending in Houston, totaling only $34
thousand
36%
29%
33%
2%
Office
Retail
Multifamily
Other
Commercial Real Estate- Houston
Source: Company Documents
THIRD QUARTER 2017 – BALANCE SHEET
$ in thousands except % data
Total
Houston CRE
Portfolio
Energy Corridor
(all office)
Remainder
Houston
Portfolio
Balance at September 30, 2017 $ 457,673 $ 83,853 $ 373,820
% of Houston CRE Portfolio 18% 82%
Weighted Average Debt Service
Coverage 1.60X 1.53X 1.61X
Weighted Average Yield on Debt 10.99% 10.49% 11.12%
11
Total deposits at September 30, 2017 increased by $197.9 million from
June 30, 2017, which included growth in savings and money market and non-
interest-bearing demand deposits.
Core funded, low cost deposit base
Source: Company Documents
1 Represents balance acquired on January 1, 2015
($ in millions)
Total Deposits
Cost of deposits: 0.61%
THIRD QUARTER 2017 – BALANCE SHEET
As of September 30, 2017
22.6%
13.2%
43.9%
20.3%
Non-interest
bearing-demand
Interest-bearing
demand
Savings and money
market
Time
$5,227
1
Originated Deposits
Acquired from LegacyTexas Group, Inc.
Deposit Cost
2012Y 2013Y 2014Y 2015Y 2016Y 2017 Q3
$2,178 $2,265
$2,658
$3,599
$6,365
$6,760
$1,628
0.54%
0.43% 0.34% 0.29%
0.43%
0.61%
12
Solid net interest income growth
• Net interest income for Q3 2017 increased $3.2 million from Q2 2017 and increased $5.5
million from Q3 2016.
• The net interest margin for the third quarter of 2017 was 3.71%, a six basis point decrease
from the second quarter of 2017 and a seven basis point decrease from the third quarter of
2016.
Source: Company Documents
Net interest income and NIM
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – INCOME STATEMENT
Net interest income ($mm) NIM
2013Y 2014Y 2015Y 2016Y 2016 Q3 2017 Q3
$118 $133
$241
$282
$73 $79
3.71% 3.78% 4.00%
3.79% 3.78% 3.71%
13
Disciplined expense management
THIRD QUARTER 2017 – INCOME STATEMENT
($ in millions)
Note: Core (non-GAAP) non-interest income, non-interest expense and efficiency ratio are adjusted for the impact of infrequent or non-
recurring items. The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations
and peer comparability, is included in tabular form at the end of this presentation.
Efficiency ratio on a GAAP and core basis improved to 44.19% and 44.37%, respectively, for Q3
2017, compared to 44.96% (both GAAP and core) for Q2 2017. Non-interest expense for Q3 2017
increased by $706,000 on a linked-quarter basis, while non-interest income decreased by
$99,000 for the same period.
Net interest income Core non-interest income Core non-interest expense Core efficiency ratio
2014Y 2015Y 2016Y 2016 Q3 2017 Q3
$133
$241
$282
$73 $79
$21
$45 $48
$13 $12
$87
$150 $156
$40 $40
56.9%
52.5%
47.3% 46.0% 44.4%
14
Asset quality
Source: Company documents
1 Held for investment, excluding Warehouse Purchase Program loans
NCOs / average loans HFI¹NPAs / loans HFI1 + OREO
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – ASSET QUALITY
2013Y 2014Y 2015Y 2016Y 2017 Q3
1.10%
0.91% 0.89%
2.01%
1.36%
2013Y 2014Y 2015Y 2016Y 2017 Q3
0.10%
0.02%
0.09%
0.14%
0.78%
Total non-performing loans decreased by $22.3 million from Q2 2017, with only $11.7 million,
or 15%, of total NPLs past due at September 30, 2017. Net charge-offs for Q3 2017 included
$11.9 million in charge-offs recorded on the resolution of two reserve-based energy
relationships.
15
Total Classified Assets (including foreclosed assets)
Classified assets increased by $9.8 million from Q2 2017, while a $22.2 million
decline in classified energy loans drove a $21.8 million decrease in classified
assets compared to Q3 2016.
Asset quality
Source: Company documents
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
THIRD QUARTER 2017 – ASSET QUALITY
($ in millions)
Oil and Gas
Corporate Healthcare Finance
All Other Loan Portfolios
2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3
$52.6 $60.2 $40.9 $36.4 $30.8
$10.5
$22.7
$23.3
$19.5 $32.7
$98.8
$161.9
$67.6
$150.5
$75.3
$139.5
$74.4
$130.3
$76.6
$140.1
16
Prudent capital management
Source: Company documents
1 See the section labeled "Supplemental Information- Non-GAAP Financial Measures“
2 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve
TCE / TA1 Tier 1 common risk-based2
Tier 1 leverage2
THIRD QUARTER 2017 – CAPITAL
2013Y 2014Y 2015Y 2016Y 2017 Q3
14.7% 13.0%
8.3% 8.6% 8.7%
2013Y 2014Y 2015Y 2016Y 2017 Q3
18.2%
15.1%
9.6% 9.1% 9.2%
2013Y 2014Y 2015Y 2016Y 2017 Q3
15.7% 13.9%
9.5% 8.7% 9.0%
17
Key investment highlights
One of the largest independent Texas financial services companies built
upon a strong customer focus and a long history of serving Texans
Commercially focused loan growth and disciplined expense management
Growth balanced with disciplined underwriting and risk management
Capital ratios remain strong; provides dry powder for robust organic growth
THIRD QUARTER 2017 – INVESTMENT HIGHLIGHTS
18
Looking ahead
Expand our Texas footprint and solidify our deep-rooted culture
Focus on growth – organically and through selective acquisitions
Diversify income sources
Prudent and focused expense management
Maintain asset quality
Strategic capital deployment
THIRD QUARTER 2017 – LOOKING AHEAD
19
Manifesto
We believe in our customers. Their goals. Their
dreams. Their ambitions for tomorrow.
And since 1952, we’ve been doing whatever it takes to support them as they
advance in business and in life.
We are responsive, accountable, trusted, experts at what we do. And we
listen. Because we believe that true understanding is the first step toward
bold, meaningful results.
Fueled by an independent spirit, inspired by the ingenuity of our customers
and grounded by the values of our community, we are a family like no other.
We are LegacyTexas.
THIRD QUARTER 2017 – OUR VISION
Appendix
21
Supplemental Information – Non-GAAP Financial Measures (unaudited)
Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (net of tax):
At or For the Quarter Ended
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
(Dollars in thousands, except per share amounts)
GAAP net income available to common shareholders 1 $ 28,617 $ 27,837 $ 18,111 $ 25,174 $ 27,084
Distributed and undistributed earnings to participating securities 1 92 98 79 131 133
(Gain) loss on sale of branch locations and land (237) — (847) — —
Loss on sale of FHA loan portfolio — — — — 969
Core (non-GAAP) net income $ 28,472 $ 27,935 $ 17,343 $ 25,305 $ 28,186
Average shares for basic earnings per share 46,664,233 46,596,467 46,453,658 46,346,053 46,227,734
GAAP basic earnings per share $ 0.61 $ 0.60 $ 0.39 $ 0.54 $ 0.59
Core (non-GAAP) basic earnings per share 0.61 0.60 0.37 0.55 0.61
Average shares for diluted earnings per share 47,158,729 47,005,554 47,060,306 46,873,215 46,546,532
GAAP diluted earnings per share $ 0.61 $ 0.59 $ 0.38 $ 0.54 $ 0.58
Core (non-GAAP) diluted earnings per share 0.60 0.59 0.37 0.54 0.61
1 Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are
included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B.
At or For the Year Ended December 31,
2016 2015 2014 2013 2012
GAAP net income available to common shareholders 1 $ 97,324 $ 70,382 $ 30,942 $ 31,294 $ 35,135
Distributed and undistributed earnings to participating securities 1 497 534 336 394 106
Merger and acquisition costs — 1,009 7,071 431 2,621
Net (gain) on sale of insurance subsidiary operations (39) — — — —
(Gain) loss on sale of branch locations and land (2,529) (190) — — —
Loss on sale of FHA loan portfolio 969 — — — —
Valuation adjustment on mortgage servicing rights — 121 — — —
One-time payroll and severance costs — — 234 436 777
Costs relating to sale of ViewPoint Mortgage — — – – 227
Goodwill impairment — — – – 532
Core (non-GAAP) net income $ 96,222 $ 71,856 $ 38,583 $ 32,555 $ 39,398
Average shares for basic earnings per share 46,184,074 45,847,284 37,919,065 37,589,548 35,879,704
GAAP basic earnings per share $ 2.11 $ 1.54 $ 0.82 $ 0.83 $ 0.98
Core (non-GAAP) basic earnings per share 2.08 1.57 1.02 0.87 1.10
Average shares for diluted earnings per share 46,484,967 46,125,447 38,162,094 37,744,786 35,998,345
GAAP diluted earnings per share $ 2.09 $ 1.53 $ 0.81 $ 0.83 $ 0.98
Core (non-GAAP) diluted earnings per share 2.07 1.56 1.01 0.86 1.09
22
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Quarter Ended
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
(Dollars in thousands, except per share amounts)
Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income (gross of tax):
GAAP non-interest income $ 12,226 $ 12,325 $ 12,130 $ 12,277 $ 11,277
(Gain) loss on sale of branch locations and land (365) — (1,304) — —
Loss on sale of FHA loan portfolio — — — — 1,491
Core (non-GAAP) non-interest income $ 11,861 $ 12,325 $ 10,826 $ 12,277 $ 12,768
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax):
GAAP efficiency ratio:
Non-interest expense $ 40,295 $ 39,589 $ 39,752 $ 39,548 $ 39,674
Net interest income plus non-interest income 91,190 88,045 88,678 86,361 84,757
Efficiency ratio- GAAP basis 44.19% 44.96% 44.83% 45.79% 46.81%
Core (non-GAAP) efficiency ratio:
GAAP non-interest expense $ 40,295 $ 39,589 $ 39,752 $ 39,548 $ 39,674
Net interest income plus core (non-GAAP) non-interest income 90,825 88,045 87,374 86,361 86,248
Efficiency ratio- core (non-GAAP) basis 44.37% 44.96% 45.50% 45.79% 46.00%
23
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Year Ended December 31,
2016 2015 2014
Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Expense (gross of tax):
GAAP non-interest income $ 51,931 $ 44,815 $ 20,743
Net (gain) on sale of insurance subsidiary operations (1,181) — —
(Gain) loss on sale of branch locations and land (3,891) (293) —
Loss on sale of FHA loan portfolio 1,491 — —
Valuation adjustment on mortgage servicing rights — 186 —
Core (non-GAAP) non-interest income $ 48,350 $ 44,708 $ 20,743
GAAP non-interest expense $ 156,377 $ 151,555 $ 98,092
Merger and acquisition costs — (1,553) (10,291)
One-time payroll and severance costs — — (360)
Core (non-GAAP) non-interest expense $ 156,377 $ 150,002 $ 87,441
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax):
Net interest income $ 282,269 $ 241,077 $ 133,007
GAAP efficiency ratio:
Non-interest expense $ 156,377 $ 151,555 $ 98,092
Net interest income plus non-interest income 334,200 285,892 153,750
Efficiency ratio- GAAP basis 46.79% 53.01% 63.80%
Core (non-GAAP) efficiency ratio:
Core (non-GAAP) non-interest expense $ 156,377 $ 150,002 $ 87,441
Net interest income plus core (non-GAAP) non-interest income 330,619 285,785 153,750
Efficiency ratio- core (non-GAAP) basis 47.30% 52.49% 56.87%
24
Supplemental Information – Non-GAAP Financial Measures (unaudited)
Calculation of Tangible Book Value and Tangible Equity to Tangible Assets:
At or For the Quarter Ended
September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
Calculation of Tangible Book Value per share: (Dollars in thousands, except per share amounts)
Total shareholders' equity $ 950,092 $ 925,283 $ 899,917 $ 885,365 $ 866,845
Less: Goodwill (178,559) (178,559) (178,559) (178,559) (178,559)
Less: Identifiable intangible assets, net (463) (524) (585) (665) (752)
Total tangible shareholders' equity $ 771,070 $ 746,200 $ 720,773 $ 706,141 $ 687,534
Shares outstanding at end of period 48,040,059 48,009,379 47,940,133 47,876,198 47,773,160
Book value per share- GAAP $ 19.78 $ 19.27 $ 18.77 $ 18.49 $ 18.15
Tangible book value per share- Non-GAAP 16.05 15.54 15.03 14.75 14.39
Calculation of Tangible Equity to Tangible Assets:
Total assets $ 9,068,612 $ 8,970,375 $ 8,436,542 $ 8,362,255 $ 8,440,010
Less: Goodwill (178,559) (178,559) (178,559) (178,559) (178,559)
Less: Identifiable intangible assets, net (463) (524) (585) (665) (752)
Total tangible assets $ 8,889,590 $ 8,791,292 $ 8,257,398 $ 8,183,031 $ 8,260,699
Equity to assets- GAAP 10.48% 10.31% 10.67% 10.59% 10.27%
Tangible equity to tangible assets- Non-GAAP 8.67% 8.49% 8.73% 8.63% 8.32%
At or For the Year Ended December 31,
2015 2014 2013 2012
Calculation of Tangible Book Value per share:
Total shareholders' equity $ 804,076 $ 568,223 $ 544,460 $ 520,871
Less: Goodwill (180,776) (29,650) (29,650) (29,650)
Less: Identifiable intangible assets, net (1,030) (813) (1,239) (1,653)
Total tangible shareholders' equity $ 622,270 $ 537,760 $ 513,571 $ 489,568
Shares outstanding at end of period 47,645,826 40,014,851 39,938,816 39,612,911
Book value per share- GAAP $ 16.88 $ 14.20 $ 13.63 $ 13.15
Tangible book value per share- Non-GAAP 13.06 13.44 12.86 12.36
Calculation of Tangible Equity to Tangible Assets:
Total assets $ 7,691,940 $ 4,164,114 $ 3,525,232 $ 3,663,058
Less: Goodwill (180,776) (29,650) (29,650) (29,650)
Less: Identifiable intangible assets, net (1,030) (813) (1,239) (1,653)
Total tangible assets $ 7,510,134 $ 4,133,651 $ 3,494,343 $ 3,631,755
Equity to assets- GAAP 10.45% 13.65% 15.44% 14.22%
Tangible equity to tangible assets- Non-GAAP 8.29% 13.01% 14.70% 13.48%
25
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Quarter Ended
September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
(Dollars in thousands, except per share amounts)
Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core)
Net income $ 28,709 $ 27,935 $ 18,190 $ 25,305 $ 27,217
Core (non-GAAP) net income 28,472 27,935 17,343 25,305 28,186
Average total equity 940,606 914,564 900,118 880,250 860,142
Average total assets 8,889,914 8,491,696 8,172,072 8,445,209 8,176,612
Return on average common shareholders' equity 12.21% 12.22% 8.08% 11.50% 12.66%
Core (non-GAAP) return on average common
shareholders' equity 12.11 12.22 7.71 11.50 13.11
Return on average assets 1.29 1.32 0.89 1.20 1.33
Core (non-GAAP) return on average assets 1.28 1.32 0.85 1.20 1.38