Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - LegacyTexas Financial Group, Inc. | ex992-q42017_dividendannou.htm |
| EX-99.1 - EXHIBIT 99.1 - LegacyTexas Financial Group, Inc. | ex991-q42017_earningsrelea.htm |
| 8-K - 8-K - LegacyTexas Financial Group, Inc. | a8k-q42017_covererslides.htm |
January 24, 2018
EXHIBIT 99.3
Fourth Quarter and Full Year 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; changes in the regulatory and tax environments in which the Company operates, including the
impact of the "Tax Cuts and Jobs Act" (the "TCJA") on the Company's deferred tax asset, and the anticipated impact of the TCJA on the
Company's future earnings; 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.
FOURTH QUARTER AND FY 2017
3
Today’s presenters
FOURTH QUARTER AND FY 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
• 37+ 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
• 25+ years of Texas banking experience
4
• Net income for full year 2017 of $89.5 million, core (non-GAAP) net income for full year 2017
of $101.9 million
• In 2017, loans held for investment4 grew $584.0 million, and deposits grew $402.2 million
• GAAP efficiency ratio improved to 45.17% , compared to 46.79% for full year 2016
Full Year
2017 Results
• Net income for Q4 2017 of $14.7 million, core (non-GAAP) net income for Q4 2017 of $28.2
million3
• Basic earnings per share for Q4 2017 was $0.31, $0.60 on a core (non-GAAP) basis3
• Average loans held for investment4 for Q4 2017 grew $208.6 million from Q3 2017, leading to
a seven basis point increase in the net interest margin to 3.78%
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
Income Tax
Reform
Key franchise highlights - Q4 2017
• Net income for Q4 2017 included a $13.5 million increase in income tax expense related to
the Tax Cuts and Jobs Act
• Estimated effective tax rate for 2018 is 20%
• In 2018, all full-time employees whose salary is under $100,000 will receive a $1,000
bonus. Also we are increasing our minimum wage to $15 from $11 per hour for all non-
commission-based employees
Source: Company Documents
1 Includes banks headquartered in the Dallas-Fort Worth-Arlington MSA
2 Represents latest available data from the Bureau of Labor Statistics for the Dallas-Fort Worth-Arlington, TX MSA (i.e., data as of Q2 2017)
3 See the section labeled "Supplemental Information - Non-GAAP Financial Measures"
4 Excludes Warehouse Purchase Program loans and loans held for sale
FOURTH QUARTER AND FY 2017 – FRANCHISE HIGHLIGHTS
Q4 2017
Results
5
Fourth quarter highlights
($ in millions except for per share data) Quarter ended
December 31,
2016
September 30,
2017
December 31,
2017 Linked Q ∆ YOY ∆
Selected balance sheet data
Gross loans held for investment1 $ 6,065.4 $ 6,617.9 $ 6,649.5 0.5 % 9.6 %
Total deposits 6,365.5 6,760.4 6,767.7 0.1 % 6.3 %
Non-interest-bearing demand
deposits 1,384.0 1,529.1 1,635.6 7.0 % 18.2 %
Selected profitability data
Net income $ 25.3 $ 28.7 $ 14.7 (48.9)% (42.1)%
Core net income2 25.3 28.5 28.2 (1.1)% 11.3 %
Basic EPS 0.54 0.61 0.31 (49.2)% (42.6)%
Core EPS2 0.55 0.61 0.60 (1.6)% 9.1 %
NIM 3.68% 3.71% 3.78% 7bps 10bps
Core return on average equity2 11.50% 12.11% 11.69% (3.5)% 1.7 %
Core return on average assets2 1.20% 1.28% 1.27% (0.8)% 5.8 %
Core efficiency ratio2 45.79% 44.37% 46.74% 5.3 % 2.1 %
Source: Company Documents
1 Excludes Warehouse Purchase Program loans
2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures“
FOURTH QUARTER AND FY 2017 – QUARTERLY HIGHLIGHTS
6
Full year 2017 highlights
($ in millions except for per share data) Year ended
December 31,
2016
December 31,
2017 YOY ∆
Selected balance sheet data
Gross loans held for investment1 $ 6,065.4 $ 6,649.5 9.6 %
Total deposits 6,365.5 6,767.7 6.3 %
Non-interest-bearing demand
deposits 1,384.0 1,635.6 18.2 %
Selected profitability data
Net income $ 97.8 $ 89.5 (8.5)%
Core net income2 96.2 101.9 5.9 %
Basic EPS 2.11 1.91 (9.5)%
Core EPS2 2.08 2.19 5.3 %
NIM 3.79% 3.81% 2bps
Core return on average equity2 11.34% 10.96% (3.4)%
Core return on average assets2 1.22% 1.18% (3.3)%
Core efficiency ratio2 47.30% 45.38% (4.1)%
Source: Company Documents
1 Excludes Warehouse Purchase Program loans
2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures“
FOURTH QUARTER AND FY 2017 – FULL YEAR HIGHLIGHTS
7
Originated loans
Acquired from LegacyTexas Group, Inc.
2012Y 2013Y 2014Y 2015Y 2016Y 2017Y
$1,691
$2,050
$2,634
$3,667
$6,065
$6,649
$1,400
Gross loans held for investment1 at Q4 2017 grew $31.6 million from Q3 2017,
which included growth in commercial real estate, commercial and industrial
and consumer real estate loans.
45.4%
23.5%
8.0%
4.2% 18.2%
0.7%
($ 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 December 31, 20171
Total Loans HFI1
FOURTH QUARTER AND FY 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: 4.94%
8
• Reserve-based energy portfolio at
December 31, 2017 consisted of 51%
crude oil reserves and 49% natural gas
reserves
• At December 31, 2017, 53 reserve-based
borrowers and 2 midstream borrowers
• $364 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
FOURTH QUARTER AND FY 2017 – ENERGY LENDING
Geographic Concentration of
Reserves
Texas Panhandle
Marcellus
Gulf of Mexico
Central/Southern
Louisiana
Other
18%
9%
4%
10%
11%7%
10%
2%
5%
24%
9
65%4%
31%
Source: Company documents for loans managed by Energy Finance group
• Reserve-based loans are almost exclusively first liens, with only a $5 million
commitment to a 2nd lien facility at December 31, 2017
• No unsecured commitments/exposure
Energy lending
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
FOURTH QUARTER AND FY 2017 – ENERGY LENDING
Outstanding loan balances and related loan loss reserves
($ in millions)
Energy
reserves $19.2 $18.7 $24.6 $18.4 $20.7
2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4
$527.2
$504.0
$515.5
$526.8 $531.7
$39.0
$43.1 $30.4
$27.8 $15.4
3.4% 3.4%
4.5%
3.3%
3.8%
Midstream Reserve-based Reserve %
SNC Breakout of Reserve-Based Energy Loans
Non-LTXB LTXB led SNC Direct and Other
Led SNC Participations
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-$126 with average of $92
• Only one Houston area loss since the 2003 inception of CRE lending in Houston, totaling only $34
thousand
36%
25%
38%
1%
Office
Retail
Multifamily
Other
Commercial Real Estate- Houston
Source: Company Documents
FOURTH QUARTER AND FY 2017 – BALANCE SHEET
$ in thousands except % data
Total
Houston CRE
Portfolio
Energy Corridor
(all office)
Remainder
Houston
Portfolio
Balance at December 31, 2017 $ 467,005 $ 83,471 $ 383,534
% of Houston CRE Portfolio 18% 82%
Weighted Average Debt Service
Coverage 1.52X 1.42X 1.54X
Weighted Average Yield on Debt 10.55% 9.74% 10.75%
11
Originated Deposits Acquired from LegacyTexas Group, Inc1
Non-interest-bearing demand deposits as a percent of total deposits
Total deposits at December 31, 2017 increased by $7.3 million from
September 30, 2017, which included growth of $139.7 million and $106.6
million in interest-bearing demand and non-interest-bearing demand
deposits, respectively.
Core funded, low cost deposit base
Source: Company Documents
1 Represents balance acquired on January 1, 2015
($ in millions)
Total Deposits
FOURTH QUARTER AND FY 2017 – BALANCE SHEET
As of December 31, 2017
24.2%
15.2%
40.4%
20.2%
Non-interest
bearing-demand
Interest-bearing
demand
Savings and
money market
Time
$5,227
Deposit
Cost 0.54% 0.43% 0.34% 0.29% 0.43% 0.64%
2012Y 2013Y 2014Y 2015Y 2016Y 2017Y
$2,178 $2,265
$2,658
$3,599
$6,365
$6,768
$1,628
16.4% 18.2%
18.6%
22.4%
21.7%
24.2%
12
Solid net interest income growth
• Net interest income for Q4 2017 increased $1.2 million from Q3 2017 and increased $6.1
million from Q4 2016.
• The net interest margin for the fourth quarter of 2017 was 3.78%, a seven basis point
increase from the third quarter of 2017 and a ten basis point increase from the fourth quarter
of 2016.
Source: Company Documents
Net interest income and NIM
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
FOURTH QUARTER AND FY 2017 – INCOME STATEMENT
Net interest income ($mm) NIM
2014Y 2015Y 2016Y 2017Y 2016 Q4 2017 Q4
$133
$241
$282
$311
$74 $80
3.78% 4.00%
3.79%
3.81%
3.68% 3.78%
13
Net interest income Core non-interest income Core non-interest expense Core efficiency ratio
2015Y 2016Y 2017Y 2016 Q4 2017 Q4
$241
$282
$311
$74 $80$45 $48 $42
$12 $7
$150 $156 $160
$40 $41
52.5% 47.3%
45.4% 45.8% 46.7%
Disciplined expense management
FOURTH QUARTER AND FY 2017 – INCOME STATEMENT
($ 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 increased to 46.74% (both GAAP and core) for Q4 2017, compared to a GAAP
efficiency ratio of 44.19% and a core efficiency ratio of 44.37% for Q3 2017. On a linked-quarter
basis, non-interest income decreased by $5.3 million, primarily due to a $3.9 million write-down
on a foreclosed property, while non-interest expense increased by $413,000.
14
2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4
$60.2 $40.9 $36.4 $30.8 $24.4
$22.7
$23.3 $19.5 $32.7 $28.0
$67.6
$150.5
$75.3
$139.5
$74.4
$130.3
$76.6
$140.1
$69.8
$122.2
Asset quality
Source: Company documents
1 Held for investment, excluding Warehouse Purchase Program loans
NCOs / average loans HFI¹
Non-Performing Loans
R: 000
G: 048
B: 135
R: 111
G: 162
B: 135
FOURTH QUARTER AND FY 2017 – ASSET QUALITY
Total non-performing loans increased by $17.5 million from Q3 2017, with only $11.8 million, or 12%, of
total NPLs past due at December 31, 2017, while total classified assets decreased by $17.9 million for the
same period.
Total Classified Assets (including foreclosed assets)
2013Y 2014Y 2015Y 2016Y 2017Y
0.10%
0.02%
0.09%
0.14%
0.53%
Oil and Gas Corporate Healthcare All Other Loans
Finance Portfolios
($ in millions) ($ in millions)
2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4
$111.4 $107.4
$99.2
$76.9
$94.4
15
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
FOURTH QUARTER AND FY 2017 – CAPITAL
2013Y 2014Y 2015Y 2016Y 2017Y
14.7% 13.0%
8.3% 8.6% 8.8%
2013Y 2014Y 2015Y 2016Y 2017Y
18.2%
15.1%
9.6% 9.1% 9.4%
2013Y 2014Y 2015Y 2016Y 2017Y
15.7% 13.9%
9.5% 8.7% 9.2%
16
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
FOURTH QUARTER AND FY 2017 – INVESTMENT HIGHLIGHTS
17
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
FOURTH QUARTER AND FY 2017 – LOOKING AHEAD
18
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.
FOURTH QUARTER AND FY 2017 – OUR VISION
Appendix
20
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
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
(Dollars in thousands, except per share amounts)
GAAP net income available to common shareholders 1 $ 14,613 $ 28,617 $ 27,837 $ 18,111 $ 25,174
Distributed and undistributed earnings to participating securities 1 47 92 98 79 131
(Gain) loss on one-time tax adjustments2 13,493 — — — —
(Gain) loss on sale of branch locations and land — (237) — (847) —
Core (non-GAAP) net income $ 28,153 $ 28,472 $ 27,935 $ 17,343 $ 25,305
Average shares for basic earnings per share 46,729,160 46,664,233 46,596,467 46,453,658 46,346,053
GAAP basic earnings per share $ 0.31 $ 0.61 $ 0.60 $ 0.39 $ 0.54
Core (non-GAAP) basic earnings per share 0.60 0.61 0.60 0.37 0.55
Average shares for diluted earnings per share 47,290,308 47,158,729 47,005,554 47,060,306 46,873,215
GAAP diluted earnings per share $ 0.31 $ 0.61 $ 0.59 $ 0.38 $ 0.54
Core (non-GAAP) diluted earnings per share 0.60 0.60 0.59 0.37 0.54
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.
2 This one-time income tax expense adjustment consists of an adjustment to the Company's deferred tax asset related to the December 22, 2017
enactment of the Tax Cuts and Jobs Act.
At or For the Year Ended December 31,
2017 2016 2015 2014 2013
GAAP net income available to common shareholders 1 $ 89,176 $ 97,324 $ 70,382 $ 30,942 $ 31,294
Distributed and undistributed earnings to participating securities 1 318 497 534 336 394
(Gain) loss on one-time tax Adjustments2 13,493 — — — —
Merger and acquisition costs — — 1,009 7,071 431
Net (gain) on sale of insurance subsidiary operations — (39) — — —
(Gain) loss on sale of branch locations and land (1,084) (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
Core (non-GAAP) net income $ 101,903 $ 96,222 $ 71,856 $ 38,583 $ 32,555
Average shares for basic earnings per share 46,611,780 46,184,074 45,847,284 37,919,065 37,589,548
GAAP basic earnings per share $ 1.91 $ 2.11 $ 1.54 $ 0.82 $ 0.83
Core (non-GAAP) basic earnings per share 2.19 2.08 1.57 1.02 0.87
Average shares for diluted earnings per share 47,138,518 46,484,967 46,125,447 38,162,094 37,744,786
GAAP diluted earnings per share $ 1.89 $ 2.09 $ 1.53 $ 0.81 $ 0.83
Core (non-GAAP) diluted earnings per share 2.16 2.07 1.56 1.01 0.86
21
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Quarter Ended
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
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 $ 6,901 $ 12,226 $ 12,325 $ 12,130 $ 12,277
(Gain) loss on sale of branch locations and land — (365) — (1,304) —
Core (non-GAAP) non-interest income $ 6,901 $ 11,861 $ 12,325 $ 10,826 $ 12,277
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax):
GAAP efficiency ratio:
Non-interest expense $ 40,708 $ 40,295 $ 39,589 $ 39,752 $ 39,548
Net interest income plus non-interest income 87,100 91,190 88,045 88,678 86,361
Efficiency ratio- GAAP basis 46.74% 44.19% 44.96% 44.83% 45.79%
Core (non-GAAP) efficiency ratio:
GAAP non-interest expense $ 40,708 $ 40,295 $ 39,589 $ 39,752 $ 39,548
Net interest income plus core (non-GAAP) non-interest income 87,100 90,825 88,045 87,374 86,361
Efficiency ratio- core (non-GAAP) basis 46.74% 44.37% 44.96% 45.50% 45.79%
22
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Year Ended December 31,
2017 2016 2015
Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Expense (gross of tax):
GAAP non-interest income $ 43,582 $ 51,931 $ 44,815
Net (gain) on sale of insurance subsidiary operations — (1,181) —
(Gain) loss on sale of branch locations and land (1,669) (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 $ 41,913 $ 48,350 $ 44,708
GAAP non-interest expense $ 160,344 $ 156,377 $ 151,555
Merger and acquisition costs — — (1,553)
Core (non-GAAP) non-interest expense $ 160,344 $ 156,377 $ 150,002
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax):
Net interest income $ 311,431 $ 282,269 $ 241,077
GAAP efficiency ratio:
Non-interest expense $ 160,344 $ 156,377 $ 151,555
Net interest income plus non-interest income 355,013 334,200 285,892
Efficiency ratio- GAAP basis 45.17% 46.79% 53.01%
Core (non-GAAP) efficiency ratio:
Core (non-GAAP) non-interest expense $ 160,344 $ 156,377 $ 150,002
Net interest income plus core (non-GAAP) non-interest income 353,344 330,619 285,785
Efficiency ratio- core (non-GAAP) basis 45.38% 47.30% 52.49%
23
Supplemental Information – Non-GAAP Financial Measures (unaudited)
Calculation of Tangible Book Value and Tangible Equity to Tangible Assets:
At or For the Quarter Ended
December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017
Calculation of Tangible Book Value per share: (Dollars in thousands, except per share amounts)
Total shareholders' equity $ 959,874 $ 950,092 $ 925,283 $ 899,917
Less: Goodwill (178,559) (178,559) (178,559) (178,559)
Less: Identifiable intangible assets, net (402) (463) (524) (585)
Total tangible shareholders' equity $ 780,913 $ 771,070 $ 746,200 $ 720,773
Shares outstanding at end of period 48,117,390 48,040,059 48,009,379 47,940,133
Book value per share- GAAP $ 19.95 $ 19.78 $ 19.27 $ 18.77
Tangible book value per share- Non-GAAP 16.23 16.05 15.54 15.03
Calculation of Tangible Equity to Tangible Assets:
Total assets $ 9,086,196 $ 9,068,612 $ 8,970,375 $ 8,436,542
Less: Goodwill (178,559) (178,559) (178,559) (178,559)
Less: Identifiable intangible assets, net (402) (463) (524) (585)
Total tangible assets $ 8,907,235 $ 8,889,590 $ 8,791,292 $ 8,257,398
Equity to assets- GAAP 10.56% 10.48% 10.31% 10.67%
Tangible equity to tangible assets- Non-GAAP 8.77% 8.67% 8.49% 8.73%
At or For the Year Ended December 31,
2016 2015 2014 2013
Calculation of Tangible Book Value per share:
Total shareholders' equity $ 885,365 $ 804,076 $ 568,223 $ 544,460
Less: Goodwill (178,559) (180,776) (29,650) (29,650)
Less: Identifiable intangible assets, net (665) (1,030) (813) (1,239)
Total tangible shareholders' equity $ 706,141 $ 622,270 $ 537,760 $ 513,571
Shares outstanding at end of period 47,876,198 47,645,826 40,014,851 39,938,816
Book value per share- GAAP $ 18.49 $ 16.88 $ 14.20 $ 13.63
Tangible book value per share- Non-GAAP 14.75 13.06 13.44 12.86
Calculation of Tangible Equity to Tangible Assets:
Total assets $ 8,362,255 $ 7,691,940 $ 4,164,114 $ 3,525,232
Less: Goodwill (178,559) (180,776) (29,650) (29,650)
Less: Identifiable intangible assets, net (665) (1,030) (813) (1,239)
Total tangible assets $ 8,183,031 $ 7,510,134 $ 4,133,651 $ 3,494,343
Equity to assets- GAAP 10.59% 10.45% 13.65% 15.44%
Tangible equity to tangible assets- Non-GAAP 8.63% 8.29% 13.01% 14.70%
24
Supplemental Information – Non-GAAP Financial Measures (unaudited)
At or For the Quarter Ended
December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 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 $ 14,660 $ 28,709 $ 27,935 $ 18,190 $ 25,305
Core (non-GAAP) net income 28,153 28,472 27,935 17,343 25,305
Average total equity 963,512 940,606 914,564 900,118 880,250
Average total assets 8,865,517 8,889,914 8,491,696 8,172,072 8,445,209
Return on average common shareholders' equity 6.09% 12.21% 12.22% 8.08% 11.50%
Core (non-GAAP) return on average common
shareholders' equity 11.69 12.11 12.22 7.71 11.50
Return on average assets 0.66 1.29 1.32 0.89 1.20
Core (non-GAAP) return on average assets 1.27 1.28 1.32 0.85 1.20