Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Altabancorp | pub-8k_20180630.htm |
Exhibit 99.1
PEOPLE’S UTAH BANCORP REPORTS SECOND QUARTER RESULTS AND ANNOUNCES INCREASED QUARTERLY DIVIDEND PAYMENT
Second Quarter Highlights
|
▪ |
Total deposits grew $321 million, or 21.96%, to $1.78 billion year-over-year |
|
▪ |
Loans held for investment grew $491 million, or 40.83%, to $1.69 billion year-over-year |
|
▪ |
Net interest margin widened 55 bps to 5.26% year-over-year |
|
▪ |
Earnings per diluted share increased 57.14% to $0.55 year-over-year |
|
▪ |
Return on average assets improved to 1.93% for the second quarter of 2018 |
|
▪ |
Return on average equity improved to 15.60% for the second quarter of 2018 |
AMERICAN FORK, UTAH, July 26, 2018 – People’s Utah Bancorp (the “Company” or “PUB”) (Nasdaq: PUB) reported net income of $10.5 million for the second quarter of 2018 compared with $9.0 million for the first quarter of 2018, and $6.5 million for the second quarter of 2017. Diluted earnings per common share were $0.55 for the second quarter of 2018 compared with $0.48 for the first quarter of 2018, and $0.35 for the second quarter of 2017. For the six months ended June 30, 2018 net income was $19.5 million, or $1.03 per diluted common share, compared with $13.0 million, or $0.71 per diluted common share, for the same period a year earlier.
The Company has excluded non-recurring items including gains or losses on sale of investment securities; costs related to the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank incurred in both 2017 and 2018; and higher income tax expense related to the one-time write-down of its deferred income tax assets recorded in 2017 to derive non-GAAP financial information related to the Company’s core operations. The Company believes this non-GAAP(NG) financial information is useful in understanding the Company’s core financial performance.
Net income from core operations was $10.2 million, or $0.54 per diluted common share, for the second quarter of 2018 compared with $9.3 million, or $0.49 per diluted common share, for the first quarter of 2018 and $6.6 million, or $0.36 per diluted common share, for the second quarter of 2017(NG). For the six months ended June 30, 2018 net income from core operations was $19.5 million, or $1.03 per diluted common share, compared with $13.1 million, or $0.72 per diluted common share, for the same period a year earlier(NG).
________________________________
(NG) Details on Non-GAAP financial information are on last three tables of this press release.
Return on average assets was 1.93% for the second quarter of 2018 compared with 1.70% for first quarter of 2018, and 1.53% for the second quarter of 2017. Return on average assets from core operations for the second quarter 2018 was 1.88% compared with 1.75% for the first quarter of 2018, and 1.56% for the second quarter of 2017(NG).
Return on average equity was 15.60% for the second quarter of 2018 compared with 13.96% for the first quarter of 2018, and 10.91% for the second quarter of 2017. Return on average equity from core operations was 15.22% for the second quarter of 2018 compared with 14.38% for the first quarter of 2018, and 11.10% for the second quarter of 2017(NG).
The Board of Directors declared a quarterly dividend payment of $0.11 per common share, a 10%, or $0.01 per common share increase from the prior quarter. The dividend will be payable on August 13, 2018 to shareholders of record on August 6, 2018. The dividend payout ratio for earnings for the quarter ended June 30, 2018 was 19.65%. This continues the over 50-year history of paying dividends by the Company.
“We’re pleased with our second quarter financial performance. We experienced widening net interest margins and strong growth from a year ago both organically and through our acquisition transactions,” said Len Williams, President and Chief Executive Officer. “We continue to be focused on growing our business organically and diversifying our loan portfolio. We’re also focused on expanding our core deposit base, particularly from commercial relationships. We are experiencing greater deposit pricing pressure and expect that our cost of funds will increase, consistent with our competitors, in the near term. The economic outlook for the Utah market continues to be strong, which provides us further opportunities to grow our organization. We continue to evaluate potential acquisition opportunities throughout the Intermountain West.”
Net Interest Income and Margin
Net interest income grew 42.17%, or $8.0 million, to $27.0 million for the second quarter of 2018 compared with $19.0 million for the second quarter of 2017. The increase is primarily the result of average interest-earning assets growing 27.45%, or $443 million, and yields on interest-earning assets increasing 70 basis points for the same comparable periods to 5.60% for the second quarter of 2018. Higher yields on interest-earning assets was primarily the result of yields on loans increasing 23 basis points to 6.34% for the same comparable periods and the percentage of average loans to average interest-earning assets increasing to 83.24% for the second quarter of 2018 compared with 72.91% for the second quarter of 2017.
2
Total cost of interest-bearing liabilities increased 27 basis points to 0.57% for the second quarter of 2018 and is the result of a $116 million increase in short-term borrowing at a borrowing rate of 2.01% during the second quarter of 2018, and the cost of interest-bearing deposits increasing 11 basis points to 0.40% for the second quarter of 2018 compared with the same period a year earlier. The Company expects the increase in cost of interest-bearing deposits to accelerate over the next several quarters as financial institutions increase their competitive deposit pricing.
Net interest margins increased 55 basis points to 5.26% for the second quarter of 2018 compared with the same period a year earlier. Acquisition accounting adjustments, including the accretion of loan discounts and amortization of certificate of deposits premiums, added 16 basis points to the net interest margin in the second quarter of 2018.
Provision for Loan Losses
Provision for loan losses was $1.5 million for the second quarter of 2018 compared with $0.9 million for the second quarter of 2017. The increase in provision for loan losses is due primarily to the increase in allowance for loan losses to loans held for investment, excluding specific reserves, and a $0.3 million increase in specific reserves on classified loans. The Company incurred net recoveries of $0.1 million in the second quarter of 2018 compared with net charge-offs of $0.3 million in the second quarter of 2017.
Noninterest Income
Noninterest income was $4.1 million for the second quarter of 2018 compared with $3.8 million the same period a year ago. The increase was primarily due to gain on sale of securities, an increase in card processing fees and service charges on deposit accounts, offset by lower mortgage banking income.
Noninterest Expense
Noninterest expense was $15.8 million for the second quarter of 2018 compared with $11.8 million for the second quarter of 2017. Noninterest expense for the second quarter of 2018 increased as a result of $2.4 million of higher salaries and employee benefits primarily from the addition of employees retained from the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank, $0.3 million of higher occupancy, equipment and depreciation costs associated with the net increase of five branches from these transactions, and $0.4 million in higher data processing costs associated with an increase in total accounts from both organic growth and acquisition transactions.
3
The Company’s efficiency ratio was 50.97% for the second quarter of 2018 compared with 51.88% for the second quarter of 2017. The Company’s efficiency ratio from core operations was 51.52% for the second quarter of 2018 compared with 51.11% for the second quarter of 2017(NG).
Income Tax Provision
Income tax expense was $3.3 million for the second quarter of 2018 compared with $3.6 million for the second quarter of 2017. The effective tax rate for the second quarter of 2018 was 23.85% compared with 35.56% for the same period a year earlier. The lower effective tax rate in 2018 compared with 2017 is the result of the reduction in the federal corporate tax rate to a flat rate of 21%, the reduction of the Utah state corporate tax rate to 4.95% as well as tax benefits related to tax-deductible stock compensation expense.
Loans and Credit Quality
Loans held for investment increased $491 million, or 40.83%, to $1.69 billion at June 30, 2018 compared with $1.20 billion at June 30, 2017. Average loans grew $536 million, or 45.51%, to $1.71 billion for the quarter ended June 30, 2018 compared with $1.18 billion for the quarter ended June 30, 2017. The increase in loans held for investment was both the result of organic growth as well as loans purchased with the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank.
Non-performing loans were $8.6 million at June 30, 2018 compared with $7.6 million at June 30, 2017. Non-performing loans to total loans declined to 0.51% at June 30, 2018 compared with 0.64% at June 30, 2017. Non-performing assets were $8.6 million at June 30, 2018 compared with $8.1 million at June 30, 2017. Non-performing assets to total assets declined to 0.40% at June 30, 2018 compared with 0.47% at June 30, 2017. The allowance for loan losses to loans held for investment was 1.32% at June 30, 2018 compared with 1.44% at June 30, 2017. In accordance with acquisition accounting, loans acquired from the Utah branches of Banner Bank and Town & Country Bank were recorded at their estimated fair value, which resulted in a net discount to the loans’ contractual amounts, a portion of which reflects a discount for possible credit losses. Credit discounts are included in the determination of fair value, and as a result, no allowance for loan and lease losses is recorded for acquired loans at the acquisition date. The discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios. Remaining discounts on acquired loans was $9.7 million at June 30, 2018.
4
Total deposits increased $321 million, or 21.96%, to $1.78 billion at June 30, 2018 compared with $1.46 billion at June 30, 2017. The increase in total deposits was the result of both organic growth as well as the assumption of deposits from the Utah branches of Banner Bank and Town & Country Bank. Non-interest bearing deposits were 36.28% of total deposits as of June 30, 2018 compared with 31.89% as of June 30, 2017.
Shareholders’ Equity
Shareholders’ equity increased by $31.7 million to $272 million at June 30, 2018 compared with $240 million at June 30, 2017. The increase resulted primarily from the exchange of Town & Country shares for 466,546 PUB common shares, and from net income earned during the intervening periods, net of cash dividends paid to shareholders.
Conference Call and Webcast
Management will conduct a live conference call and webcast for investors, analysts and the public relating to the Company's results for the second quarter of 2018 at 12:00 p.m. Eastern time on Friday, July 27, 2018. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to join to the call by telephone at 888-317-6003 (international calls 412-317-6061) and the participant entry number is 0501934. Please dial in 10-15 minutes early so the name and company information can be collected prior to the start of the conference. To participate in the webcast, log on to:
http://services.choruscall.com/links/pub180727.html.
If you are unable to participate during the live webcast, the call will be archived on our website www.peoplesutah.com or at the same URL above until August 27, 2018. Forward-looking and other material information may be discussed on this conference call.
Forward-Looking Statements
Statements in this release that are based on information other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date.
5
Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include: (i) market and economic conditions; (ii) capital sufficiency; (iii) operational, liquidity, interest rate and credit risks; (iv) deterioration of asset quality; (v) achieving loan and deposit growth; (vi) increased competition; (vii) adequacy of reserves; (viii) investments in new branches and new business opportunities; and (ix) changes in the regulatory or legal environment; as well as other factors discussed in the section titled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission.
The foregoing factors should not be construed as exhaustive. The Company does not intend, or undertake any obligation to publicly update these forward-looking statements.
About People’s Utah Bancorp
People’s Utah Bancorp is the holding company for People’s Intermountain Bank. People’s Intermountain Bank is a full-service community bank providing loans, deposit and cash management services to individuals and businesses. The Company offers its clients direct access to decision makers, unparalleled responsiveness, seasoned relationship managers, and technology solutions. People’s Intermountain Bank has 26 locations in three banking divisions, Bank of American Fork, Lewiston State Bank, and People’s Town & Country Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. The Company has been serving communities in Utah and southern Idaho for more than 100 years. More information about PUB is available at www.peoplesutah.com.
Investor Relations Contact:
Mark K. Olson
Executive Vice President and Chief Financial Officer
1 East Main Street
American Fork UT 84003
investorrelations@peoplesutah.com
Phone: 801-642-3998
6
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
(Dollars in thousands, except share |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
and per share data) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
27,073 |
|
|
$ |
25,783 |
|
|
$ |
17,923 |
|
|
$ |
52,856 |
|
|
$ |
34,767 |
|
|
Interest and dividends on investments |
|
|
1,683 |
|
|
|
1,656 |
|
|
|
1,802 |
|
|
|
3,339 |
|
|
|
3,507 |
|
|
Total interest income |
|
|
28,756 |
|
|
|
27,439 |
|
|
|
19,725 |
|
|
|
56,195 |
|
|
|
38,274 |
|
|
Interest expense |
|
|
1,778 |
|
|
|
1,495 |
|
|
|
749 |
|
|
|
3,273 |
|
|
|
1,515 |
|
|
Net interest income |
|
|
26,978 |
|
|
|
25,944 |
|
|
|
18,976 |
|
|
|
52,922 |
|
|
|
36,759 |
|
|
Provision for loan losses |
|
|
1,475 |
|
|
|
2,050 |
|
|
|
900 |
|
|
|
3,525 |
|
|
|
1,100 |
|
|
Net interest income after provision for loan losses |
|
|
25,503 |
|
|
|
23,894 |
|
|
|
18,076 |
|
|
|
49,397 |
|
|
|
35,659 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
704 |
|
|
|
673 |
|
|
|
578 |
|
|
|
1,377 |
|
|
|
1,114 |
|
|
Card processing |
|
|
799 |
|
|
|
723 |
|
|
|
692 |
|
|
|
1,522 |
|
|
|
1,287 |
|
|
Mortgage banking |
|
|
1,505 |
|
|
|
1,638 |
|
|
|
1,960 |
|
|
|
3,143 |
|
|
|
3,939 |
|
|
Net gain (loss) on sale of investment securities |
|
|
333 |
|
|
|
2 |
|
|
|
1 |
|
|
|
335 |
|
|
|
(10 |
) |
|
Other operating |
|
|
725 |
|
|
|
682 |
|
|
|
606 |
|
|
|
1,407 |
|
|
|
1,099 |
|
|
Total non-interest income |
|
|
4,066 |
|
|
|
3,718 |
|
|
|
3,837 |
|
|
|
7,784 |
|
|
|
7,429 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
10,196 |
|
|
|
10,423 |
|
|
|
7,762 |
|
|
|
20,619 |
|
|
|
15,729 |
|
|
Occupancy, equipment and depreciation |
|
|
1,411 |
|
|
|
1,543 |
|
|
|
1,088 |
|
|
|
2,954 |
|
|
|
2,205 |
|
|
Data processing |
|
|
1,063 |
|
|
|
870 |
|
|
|
661 |
|
|
|
1,933 |
|
|
|
1,336 |
|
|
FDIC premiums |
|
|
299 |
|
|
|
329 |
|
|
|
130 |
|
|
|
628 |
|
|
|
256 |
|
|
Marketing and advertising |
|
|
321 |
|
|
|
446 |
|
|
|
349 |
|
|
|
767 |
|
|
|
611 |
|
|
Acquisition-related costs |
|
|
1 |
|
|
|
349 |
|
|
|
175 |
|
|
|
350 |
|
|
|
175 |
|
|
Other |
|
|
2,532 |
|
|
|
2,088 |
|
|
|
1,670 |
|
|
|
4,620 |
|
|
|
3,437 |
|
|
Total non-interest expense |
|
|
15,823 |
|
|
|
16,048 |
|
|
|
11,835 |
|
|
|
31,871 |
|
|
|
23,749 |
|
|
Income before income tax expense |
|
|
13,746 |
|
|
|
11,564 |
|
|
|
10,078 |
|
|
|
25,310 |
|
|
|
19,339 |
|
|
Income tax expense |
|
|
3,279 |
|
|
|
2,560 |
|
|
|
3,584 |
|
|
|
5,839 |
|
|
|
6,324 |
|
|
Net income |
|
$ |
10,467 |
|
|
$ |
9,004 |
|
|
$ |
6,494 |
|
|
$ |
19,471 |
|
|
$ |
13,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.36 |
|
|
$ |
1.04 |
|
|
$ |
0.73 |
|
|
Diluted |
|
$ |
0.55 |
|
|
$ |
0.48 |
|
|
$ |
0.35 |
|
|
$ |
1.03 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,679,908 |
|
|
|
18,598,436 |
|
|
|
17,937,926 |
|
|
|
18,639,397 |
|
|
|
17,911,125 |
|
|
Diluted |
|
|
18,989,176 |
|
|
|
18,937,637 |
|
|
|
18,351,531 |
|
|
|
18,963,549 |
|
|
|
18,334,028 |
|
7
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
June 30, |
|
||||
|
(Dollars in thousands, except share data) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2017 |
|
||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
33,484 |
|
|
$ |
32,267 |
|
|
$ |
36,235 |
|
|
$ |
28,315 |
|
|
Interest-bearing deposits |
|
|
17,930 |
|
|
|
9,268 |
|
|
|
13,158 |
|
|
|
26,027 |
|
|
Federal funds sold |
|
|
908 |
|
|
|
338 |
|
|
|
1,634 |
|
|
|
3,093 |
|
|
Total cash and cash equivalents |
|
|
52,322 |
|
|
|
41,873 |
|
|
|
51,027 |
|
|
|
57,435 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale, at fair value |
|
|
236,699 |
|
|
|
249,534 |
|
|
|
263,056 |
|
|
|
325,172 |
|
|
Held to maturity, at historical cost |
|
|
67,922 |
|
|
|
73,888 |
|
|
|
74,654 |
|
|
|
77,394 |
|
|
Total investment securities |
|
|
304,621 |
|
|
|
323,422 |
|
|
|
337,710 |
|
|
|
402,566 |
|
|
Non-marketable equity securities |
|
|
6,151 |
|
|
|
5,711 |
|
|
|
3,706 |
|
|
|
1,959 |
|
|
Loans held for sale |
|
|
11,058 |
|
|
|
10,618 |
|
|
|
10,871 |
|
|
|
7,655 |
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
|
1,691,959 |
|
|
|
1,687,530 |
|
|
|
1,627,444 |
|
|
|
1,201,391 |
|
|
Allowance for loan losses |
|
|
(22,308 |
) |
|
|
(20,731 |
) |
|
|
(18,303 |
) |
|
|
(17,271 |
) |
|
Total loans held for investment, net |
|
|
1,669,651 |
|
|
|
1,666,799 |
|
|
|
1,609,141 |
|
|
|
1,184,120 |
|
|
Premises and equipment, net |
|
|
29,335 |
|
|
|
29,734 |
|
|
|
30,399 |
|
|
|
23,551 |
|
|
Goodwill |
|
|
25,673 |
|
|
|
25,344 |
|
|
|
26,008 |
|
|
|
- |
|
|
Bank-owned life insurance |
|
|
26,120 |
|
|
|
25,964 |
|
|
|
23,566 |
|
|
|
19,970 |
|
|
Deferred income tax assets |
|
|
10,764 |
|
|
|
10,005 |
|
|
|
8,827 |
|
|
|
9,845 |
|
|
Accrued interest receivable |
|
|
7,658 |
|
|
|
7,616 |
|
|
|
7,594 |
|
|
|
5,616 |
|
|
Other intangibles |
|
|
3,633 |
|
|
|
3,744 |
|
|
|
3,854 |
|
|
|
533 |
|
|
Other real estate owned |
|
|
- |
|
|
|
- |
|
|
|
994 |
|
|
|
468 |
|
|
Other assets |
|
|
14,784 |
|
|
|
12,608 |
|
|
|
9,832 |
|
|
|
4,657 |
|
|
Total assets |
|
$ |
2,161,770 |
|
|
$ |
2,163,438 |
|
|
$ |
2,123,529 |
|
|
$ |
1,718,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
646,574 |
|
|
$ |
664,438 |
|
|
$ |
641,124 |
|
|
$ |
465,988 |
|
|
Interest-bearing deposits |
|
|
1,135,366 |
|
|
|
1,141,887 |
|
|
|
1,173,508 |
|
|
|
995,064 |
|
|
Total deposits |
|
|
1,781,940 |
|
|
|
1,806,325 |
|
|
|
1,814,632 |
|
|
|
1,461,052 |
|
|
Short-term borrowings |
|
|
90,000 |
|
|
|
79,000 |
|
|
|
40,000 |
|
|
|
3,302 |
|
|
Accrued interest payable |
|
|
369 |
|
|
|
354 |
|
|
|
353 |
|
|
|
269 |
|
|
Other liabilities |
|
|
17,862 |
|
|
|
13,960 |
|
|
|
11,126 |
|
|
|
13,850 |
|
|
Total liabilities |
|
|
1,890,171 |
|
|
|
1,899,639 |
|
|
|
1,866,111 |
|
|
|
1,478,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shares, $0.01 par value |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Common shares, $0.01 par value |
|
|
187 |
|
|
|
187 |
|
|
|
185 |
|
|
|
179 |
|
|
Additional paid-in capital |
|
|
85,620 |
|
|
|
85,430 |
|
|
|
84,532 |
|
|
|
69,623 |
|
|
Retained earnings |
|
|
190,735 |
|
|
|
182,136 |
|
|
|
174,804 |
|
|
|
170,840 |
|
|
Accumulated other comprehensive loss |
|
|
(4,943 |
) |
|
|
(3,954 |
) |
|
|
(2,103 |
) |
|
|
(740 |
) |
|
Total shareholders’ equity |
|
|
271,599 |
|
|
|
263,799 |
|
|
|
257,418 |
|
|
|
239,902 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,161,770 |
|
|
$ |
2,163,438 |
|
|
$ |
2,123,529 |
|
|
$ |
1,718,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
18,683,883 |
|
|
|
18,674,232 |
|
|
|
18,511,797 |
|
|
|
17,948,347 |
|
8
SUMMARY FINANCIAL INFORMATION
|
|
|
|
|
|||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
June 30, |
|
||||
|
(Dollars in thousands, except share data) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2017 |
|
||||
|
Selected Balance Sheet Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
14.54 |
|
|
$ |
14.13 |
|
|
$ |
13.91 |
|
|
$ |
13.37 |
|
|
Tangible book value per share |
|
$ |
12.97 |
|
|
$ |
12.57 |
|
|
$ |
12.29 |
|
|
$ |
13.34 |
|
|
Non-performing loans to total loans |
|
|
0.51 |
% |
|
|
0.44 |
% |
|
|
0.18 |
% |
|
|
0.64 |
% |
|
Non-performing assets to total assets |
|
|
0.40 |
% |
|
|
0.34 |
% |
|
|
0.18 |
% |
|
|
0.47 |
% |
|
Allowance for loan losses to loans held for investment |
|
|
1.32 |
% |
|
|
1.23 |
% |
|
|
1.12 |
% |
|
|
1.44 |
% |
|
Loans to Deposits |
|
|
94.32 |
% |
|
|
92.86 |
% |
|
|
89.27 |
% |
|
|
81.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
8,649 |
|
|
$ |
7,398 |
|
|
$ |
2,899 |
|
|
$ |
7,611 |
|
|
Non-performing assets |
|
|
8,649 |
|
|
|
7,398 |
|
|
|
3,893 |
|
|
|
8,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital (1) |
|
|
11.48 |
% |
|
|
11.26 |
% |
|
|
11.46 |
% |
|
|
14.15 |
% |
|
Total risk-based capital (1) |
|
|
15.22 |
% |
|
|
14.71 |
% |
|
|
14.67 |
% |
|
|
19.82 |
% |
|
Average equity to average assets |
|
|
12.36 |
% |
|
|
12.20 |
% |
|
|
13.58 |
% |
|
|
14.06 |
% |
|
Tangible common equity to tangible assets (3) |
|
|
11.36 |
% |
|
|
11.00 |
% |
|
|
10.87 |
% |
|
|
13.93 |
% |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Selected Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.36 |
|
|
$ |
1.04 |
|
|
$ |
0.73 |
|
|
Diluted earnings per share |
|
$ |
0.55 |
|
|
$ |
0.48 |
|
|
$ |
0.35 |
|
|
$ |
1.03 |
|
|
$ |
0.71 |
|
|
Net interest margin (2) |
|
|
5.26 |
% |
|
|
5.22 |
% |
|
|
4.71 |
% |
|
|
5.24 |
% |
|
|
4.63 |
% |
|
Efficiency ratio |
|
|
50.97 |
% |
|
|
54.10 |
% |
|
|
51.88 |
% |
|
|
52.50 |
% |
|
|
53.75 |
% |
|
Non-interest income to average assets |
|
|
0.75 |
% |
|
|
0.70 |
% |
|
|
0.91 |
% |
|
|
0.73 |
% |
|
|
0.89 |
% |
|
Non-interest expense to average assets |
|
|
2.91 |
% |
|
|
3.04 |
% |
|
|
2.79 |
% |
|
|
2.97 |
% |
|
|
2.85 |
% |
|
Return on average assets |
|
|
1.93 |
% |
|
|
1.70 |
% |
|
|
1.53 |
% |
|
|
1.82 |
% |
|
|
1.56 |
% |
|
Return on average equity |
|
|
15.60 |
% |
|
|
13.96 |
% |
|
|
10.91 |
% |
|
|
14.79 |
% |
|
|
11.14 |
% |
|
Net charge-offs / (recoveries) |
|
|
(102 |
) |
|
|
(378 |
) |
|
|
273 |
|
|
|
(480 |
) |
|
|
544 |
|
|
Annualized net charge-offs / (recoveries) to average loans |
|
|
-0.02 |
% |
|
|
-0.09 |
% |
|
|
0.09 |
% |
|
|
-0.06 |
% |
|
|
0.09 |
% |
________________________________
|
|
(1) |
Tier 1 leverage capital and Total risk-based capital as of June 30, 2018 are estimates. |
|
|
|
(2) |
Net interest margin is defined as net interest income divided by average earning assets. |
|
|
|
(3) |
Represents the sum of total shareholders’ equity less intangible assets all divided by the sum of total assets less intangible assets. Intangible assets were $29,306,000, $29,088,000 and $533,000 at June 30, 2018, March 31, 2018 and June 30, 2017, respectively. |
|
9
SELECTED AVERAGE BALANCES AND YIELDS
|
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
||||||||||||||||||
|
|
|
|
|
|
|
Interest |
|
|
Average |
|
|
|
|
|
|
Interest |
|
|
Average |
|
||||
|
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
||||||
|
(Dollars in thousands, except footnotes) |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits in other banks and federal funds sold |
|
$ |
15,533 |
|
|
$ |
64 |
|
|
|
1.65 |
% |
|
$ |
21,594 |
|
|
$ |
56 |
|
|
|
1.04 |
% |
|
Securities: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
|
241,724 |
|
|
|
1,193 |
|
|
|
1.98 |
% |
|
|
319,878 |
|
|
|
1,309 |
|
|
|
1.64 |
% |
|
Non-taxable securities (2) |
|
|
79,949 |
|
|
|
369 |
|
|
|
1.85 |
% |
|
|
93,686 |
|
|
|
432 |
|
|
|
1.85 |
% |
|
Total securities |
|
|
321,673 |
|
|
|
1,562 |
|
|
|
1.95 |
% |
|
|
413,564 |
|
|
|
1,741 |
|
|
|
1.69 |
% |
|
Loans (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate term |
|
|
903,637 |
|
|
|
12,860 |
|
|
|
5.71 |
% |
|
|
620,616 |
|
|
|
8,567 |
|
|
|
5.54 |
% |
|
Construction and land development |
|
|
368,823 |
|
|
|
7,303 |
|
|
|
7.94 |
% |
|
|
238,412 |
|
|
|
4,659 |
|
|
|
7.84 |
% |
|
Commercial and industrial |
|
|
317,629 |
|
|
|
5,281 |
|
|
|
6.67 |
% |
|
|
218,937 |
|
|
|
3,273 |
|
|
|
6.00 |
% |
|
Residential and home equity |
|
|
105,219 |
|
|
|
1,380 |
|
|
|
5.26 |
% |
|
|
81,765 |
|
|
|
1,157 |
|
|
|
5.68 |
% |
|
Consumer and other |
|
|
17,940 |
|
|
|
249 |
|
|
|
5.58 |
% |
|
|
17,672 |
|
|
|
267 |
|
|
|
6.05 |
% |
|
Total loans |
|
|
1,713,248 |
|
|
|
27,073 |
|
|
|
6.34 |
% |
|
|
1,177,402 |
|
|
|
17,923 |
|
|
|
6.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-marketable equity securities |
|
|
7,671 |
|
|
|
58 |
|
|
|
3.04 |
% |
|
|
2,307 |
|
|
|
4 |
|
|
|
0.78 |
% |
|
Total interest-earning assets |
|
|
2,058,125 |
|
|
$ |
28,757 |
|
|
|
5.60 |
% |
|
|
1,614,867 |
|
|
$ |
19,724 |
|
|
|
4.90 |
% |
|
Allowance for loan losses |
|
|
(21,073 |
) |
|
|
|
|
|
|
|
|
|
|
(16,658 |
) |
|
|
|
|
|
|
|
|
|
Non-interest earning assets |
|
|
140,723 |
|
|
|
|
|
|
|
|
|
|
|
100,457 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
2,177,775 |
|
|
|
|
|
|
|
|
|
|
$ |
1,698,666 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and savings accounts |
|
$ |
733,223 |
|
|
$ |
492 |
|
|
|
0.27 |
% |
|
$ |
660,564 |
|
|
$ |
438 |
|
|
|
0.27 |
% |
|
Money market accounts |
|
|
207,663 |
|
|
|
177 |
|
|
|
0.34 |
% |
|
|
168,021 |
|
|
|
73 |
|
|
|
0.17 |
% |
|
Certificates of deposit |
|
|
185,936 |
|
|
|
468 |
|
|
|
1.01 |
% |
|
|
151,976 |
|
|
|
210 |
|
|
|
0.55 |
% |
|
Total interest-bearing deposits |
|
|
1,126,822 |
|
|
|
1,137 |
|
|
|
0.40 |
% |
|
|
980,561 |
|
|
|
721 |
|
|
|
0.29 |
% |
|
Short-term borrowings |
|
|
128,288 |
|
|
|
642 |
|
|
|
2.01 |
% |
|
|
12,428 |
|
|
|
27 |
|
|
|
0.89 |
% |
|
Total interest-bearing liabilities |
|
|
1,255,110 |
|
|
$ |
1,779 |
|
|
|
0.57 |
% |
|
|
992,989 |
|
|
$ |
748 |
|
|
|
0.30 |
% |
|
Non-interest bearing deposits |
|
|
642,063 |
|
|
|
|
|
|
|
|
|
|
|
454,235 |
|
|
|
|
|
|
|
|
|
|
Total funding |
|
|
1,897,173 |
|
|
$ |
1,779 |
|
|
|
0.38 |
% |
|
|
1,447,224 |
|
|
$ |
748 |
|
|
|
0.21 |
% |
|
Other non-interest bearing liabilities |
|
|
11,433 |
|
|
|
|
|
|
|
|
|
|
|
12,677 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
269,169 |
|
|
|
|
|
|
|
|
|
|
|
238,765 |
|
|
|
|
|
|
|
|
|
|
Total average liabilities and shareholders’ equity |
|
$ |
2,177,775 |
|
|
|
|
|
|
|
|
|
|
$ |
1,698,666 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
26,978 |
|
|
|
|
|
|
|
|
|
|
$ |
18,976 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
|
5.04 |
% |
|
|
|
|
|
|
|
|
|
|
4.60 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
4.71 |
% |
________________________________
|
|
(1) |
Excludes average unrealized gains (losses) of $(6.4) million and $(786,000) for the three months ended June 30, 2018 and 2017, respectively. |
|
|
|
(2) |
Does not include tax effect on tax-exempt investment security income of $123,000 and $233,000 for the three months ended June 30, 2018 and 2017, respectively. |
|
|
|
(3) |
Loan interest income includes loan fees of $1.7 million and $1.6 million for the three months ended June 30, 2018 and 2017, respectively. |
|
10
SELECTED AVERAGE BALANCES AND YIELDS
|
|
|
Six Months Ended |
|
|||||||||||||||||||||
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
||||||||||||||||||
|
|
|
|
|
|
|
Interest |
|
|
Average |
|
|
|
|
|
|
Interest |
|
|
Average |
|
||||
|
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
||||||
|
(Dollars in thousands, except footnotes) |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits in other banks and federal funds sold |
|
$ |
14,501 |
|
|
$ |
109 |
|
|
|
1.51 |
% |
|
$ |
31,168 |
|
|
$ |
135 |
|
|
|
0.87 |
% |
|
Securities: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
|
247,078 |
|
|
|
2,406 |
|
|
|
1.96 |
% |
|
|
317,342 |
|
|
|
2,510 |
|
|
|
1.59 |
% |
|
Non-taxable securities (2) |
|
|
81,226 |
|
|
|
751 |
|
|
|
1.86 |
% |
|
|
92,930 |
|
|
|
854 |
|
|
|
1.85 |
% |
|
Total securities |
|
|
328,304 |
|
|
|
3,157 |
|
|
|
1.94 |
% |
|
|
410,272 |
|
|
|
3,364 |
|
|
|
|
|
|
Loans (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate term |
|
|
879,444 |
|
|
|
25,024 |
|
|
|
5.74 |
% |
|
|
604,327 |
|
|
|
16,575 |
|
|
|
5.53 |
% |
|
Construction and land development |
|
|
367,787 |
|
|
|
14,178 |
|
|
|
7.77 |
% |
|
|
237,330 |
|
|
|
9,060 |
|
|
|
7.70 |
% |
|
Commercial and industrial |
|
|
315,838 |
|
|
|
10,371 |
|
|
|
6.62 |
% |
|
|
214,774 |
|
|
|
6,489 |
|
|
|
6.09 |
% |
|
Residential and home equity |
|
|
106,060 |
|
|
|
2,716 |
|
|
|
5.16 |
% |
|
|
82,481 |
|
|
|
2,131 |
|
|
|
5.21 |
% |
|
Consumer and other |
|
|
18,893 |
|
|
|
567 |
|
|
|
6.05 |
% |
|
|
17,749 |
|
|
|
512 |
|
|
|
5.82 |
% |
|
Total loans |
|
|
1,688,022 |
|
|
|
52,856 |
|
|
|
6.31 |
% |
|
|
1,156,661 |
|
|
|
34,767 |
|
|
|
6.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-marketable equity securities |
|
|
6,894 |
|
|
|
73 |
|
|
|
2.15 |
% |
|
|
2,070 |
|
|
|
8 |
|
|
|
0.77 |
% |
|
Total interest-earning assets |
|
|
2,037,721 |
|
|
$ |
56,195 |
|
|
|
5.56 |
% |
|
|
1,600,171 |
|
|
$ |
38,274 |
|
|
|
4.82 |
% |
|
Allowance for loan losses |
|
|
(19,901 |
) |
|
|
|
|
|
|
|
|
|
|
(16,713 |
) |
|
|
|
|
|
|
|
|
|
Non-interest earning assets |
|
|
142,940 |
|
|
|
|
|
|
|
|
|
|
|
99,498 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
2,160,760 |
|
|
|
|
|
|
|
|
|
|
$ |
1,682,956 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and savings accounts |
|
$ |
725,774 |
|
|
$ |
943 |
|
|
|
0.26 |
% |
|
$ |
660,026 |
|
|
$ |
876 |
|
|
|
0.27 |
% |
|
Money market accounts |
|
|
215,946 |
|
|
|
333 |
|
|
|
0.31 |
% |
|
|
171,221 |
|
|
|
178 |
|
|
|
0.21 |
% |
|
Certificates of deposit |
|
|
192,705 |
|
|
|
927 |
|
|
|
0.97 |
% |
|
|
154,131 |
|
|
|
432 |
|
|
|
0.56 |
% |
|
Total interest-bearing deposits |
|
|
1,134,425 |
|
|
|
2,203 |
|
|
|
0.39 |
% |
|
|
985,378 |
|
|
|
1,486 |
|
|
|
0.30 |
% |
|
Short-term borrowings |
|
|
114,498 |
|
|
|
1,070 |
|
|
|
1.88 |
% |
|
|
7,856 |
|
|
|
29 |
|
|
|
0.74 |
% |
|
Total interest-bearing liabilities |
|
|
1,248,923 |
|
|
$ |
3,273 |
|
|
|
0.53 |
% |
|
|
993,234 |
|
|
$ |
1,515 |
|
|
|
0.31 |
% |
|
Non-interest bearing deposits |
|
|
635,503 |
|
|
|
|
|
|
|
|
|
|
|
442,861 |
|
|
|
|
|
|
|
|
|
|
Total funding |
|
|
1,884,426 |
|
|
$ |
3,273 |
|
|
|
0.35 |
% |
|
|
1,436,095 |
|
|
$ |
1,515 |
|
|
|
0.21 |
% |
|
Other non-interest bearing liabilities |
|
|
10,925 |
|
|
|
|
|
|
|
|
|
|
|
11,326 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
265,409 |
|
|
|
|
|
|
|
|
|
|
|
235,535 |
|
|
|
|
|
|
|
|
|
|
Total average liabilities and shareholders’ equity |
|
$ |
2,160,760 |
|
|
|
|
|
|
|
|
|
|
$ |
1,682,956 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
52,922 |
|
|
|
|
|
|
|
|
|
|
$ |
36,759 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
|
5.03 |
% |
|
|
|
|
|
|
|
|
|
|
4.52 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
5.24 |
% |
|
|
|
|
|
|
|
|
|
|
4.63 |
% |
________________________________
|
|
(1) |
Excludes average unrealized gains (losses) of $(5.3) million and $(1.2) million for the six months ended June 30, 2018 and 2017, respectively. |
|
|
|
(2) |
Does not include tax effect on tax-exempt investment security income of $250,000 and $460,000 for the six months ended June 30, 2018 and 2017, respectively. |
|
|
|
(3) |
Loan interest income includes loan fees of $3.3 million and $3.0 million for the six months ended June 30, 2018 and 2017, respectively. |
|
11
NON-GAAP SELECTED FINANCIAL INFORMATION
|
(NG) Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to financial results presented in accordance with generally accepted accounting principles ("GAAP"), |
|
|||||||||||||||||||
|
this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP |
|
|||||||||||||||||||
|
financial measures because it believes that they provide useful and comparative information to assess trends in |
|
|||||||||||||||||||
|
core operations and facilitate the comparison of our financial performance with the performance of our peers. |
|
|||||||||||||||||||
|
(Dollars in thousands) |
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Revenue from Core Operations |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Net interest income (GAAP) |
|
$ |
26,978 |
|
|
$ |
25,944 |
|
|
$ |
18,976 |
|
|
$ |
52,922 |
|
|
$ |
36,759 |
|
|
Total non-interest income |
|
|
4,066 |
|
|
|
3,718 |
|
|
|
3,837 |
|
|
|
7,784 |
|
|
|
7,429 |
|
|
Total GAAP revenues |
|
|
31,044 |
|
|
|
29,662 |
|
|
|
22,813 |
|
|
|
60,706 |
|
|
|
44,188 |
|
|
Exclude net (gain) loss on sale of investment securities |
|
|
(333 |
) |
|
|
- |
|
|
|
- |
|
|
|
(333 |
) |
|
|
- |
|
|
Revenue from core operations (non-GAAP) |
|
$ |
30,711 |
|
|
$ |
29,662 |
|
|
$ |
22,813 |
|
|
$ |
60,373 |
|
|
$ |
44,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Non-interest Income from Core Operations |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Total non-interest income (GAAP) |
|
$ |
4,066 |
|
|
$ |
3,718 |
|
|
$ |
3,837 |
|
|
$ |
7,784 |
|
|
$ |
7,429 |
|
|
Exclude net (gain) loss on sale of investment securities |
|
|
(333 |
) |
|
|
- |
|
|
|
- |
|
|
|
(333 |
) |
|
|
- |
|
|
Non-interest income from core operations (non-GAAP) |
|
$ |
3,733 |
|
|
$ |
3,718 |
|
|
$ |
3,837 |
|
|
$ |
7,451 |
|
|
$ |
7,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Non-interest Expense from Core Operations |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Total non-interest expense (GAAP) |
|
$ |
15,823 |
|
|
$ |
16,048 |
|
|
$ |
11,835 |
|
|
$ |
31,871 |
|
|
$ |
23,749 |
|
|
Exclude acquisition-related costs |
|
|
(1 |
) |
|
|
(349 |
) |
|
|
(175 |
) |
|
|
(350 |
) |
|
|
(175 |
) |
|
Non-interest expense from core operations (non-GAAP) |
|
$ |
15,822 |
|
|
$ |
15,699 |
|
|
$ |
11,660 |
|
|
$ |
31,521 |
|
|
$ |
23,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Net Income from Core Operations |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Net income (GAAP) |
|
$ |
10,467 |
|
|
$ |
9,004 |
|
|
$ |
6,494 |
|
|
$ |
19,471 |
|
|
$ |
13,015 |
|
|
Exclude net (gain) loss on sale of investment securities |
|
|
(333 |
) |
|
|
- |
|
|
|
- |
|
|
|
(333 |
) |
|
|
- |
|
|
Exclude acquisition-related costs |
|
|
1 |
|
|
|
349 |
|
|
|
175 |
|
|
|
350 |
|
|
|
175 |
|
|
Exclude tax related benefit |
|
|
79 |
|
|
|
(77 |
) |
|
|
(62 |
) |
|
|
(4 |
) |
|
|
(57 |
) |
|
Write down of deferred income tax assets (DTA) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net income (non-GAAP) |
|
$ |
10,214 |
|
|
$ |
9,276 |
|
|
$ |
6,607 |
|
|
$ |
19,484 |
|
|
$ |
13,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
NON-GAAP SELECTED FINANCIAL INFORMATION
|
(NG) Non-GAAP Financial Measures (continued) |
|
|||||||||||||||||||
|
(Dollars in thousands) |
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Acquisition Accounting Impact on Net Interest Margin |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Net interest income (GAAP) |
|
$ |
26,978 |
|
|
$ |
25,944 |
|
|
$ |
18,976 |
|
|
$ |
52,922 |
|
|
$ |
36,759 |
|
|
Exclude discount accretion (premium amortization) on purchased loans |
|
|
(777 |
) |
|
|
(1,167 |
) |
|
|
(8 |
) |
|
|
(1,944 |
) |
|
|
(18 |
) |
|
Exclude premium amortization on acquired certificates of deposit ("CD") |
|
|
(35 |
) |
|
|
(35 |
) |
|
|
(69 |
) |
|
|
(70 |
) |
|
|
(137 |
) |
|
Net interest income before acquisition accounting impact (Non-GAAP) |
|
$ |
26,166 |
|
|
$ |
24,742 |
|
|
$ |
18,899 |
|
|
$ |
50,908 |
|
|
$ |
36,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets (GAAP) |
|
$ |
2,058,125 |
|
|
$ |
2,017,090 |
|
|
$ |
1,614,867 |
|
|
$ |
2,037,721 |
|
|
$ |
1,600,171 |
|
|
Exclude average net loan discount on acquired loans |
|
|
10,146 |
|
|
|
11,924 |
|
|
|
866 |
|
|
|
11,030 |
|
|
|
866 |
|
|
Average earning assets before acquired loan discount (Non-GAAP) |
|
$ |
2,068,271 |
|
|
$ |
2,029,014 |
|
|
$ |
1,615,733 |
|
|
$ |
2,048,751 |
|
|
$ |
1,601,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin ("NIM") (GAAP) |
|
|
5.26 |
% |
|
|
5.22 |
% |
|
|
4.71 |
% |
|
|
5.24 |
% |
|
|
4.63 |
% |
|
Exclude impact on NIM from discount accretion |
|
|
-0.15 |
% |
|
|
-0.23 |
% |
|
|
0.00 |
% |
|
|
-0.19 |
% |
|
|
0.00 |
% |
|
Exclude impact on NIM from CD premium amortization |
|
|
-0.01 |
% |
|
|
-0.01 |
% |
|
|
-0.02 |
% |
|
|
-0.01 |
% |
|
|
-0.02 |
% |
|
Net interest margin before acquisition accounting adjustments (Non-GAAP) |
|
|
5.10 |
% |
|
|
4.98 |
% |
|
|
4.69 |
% |
|
|
5.04 |
% |
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
NON-GAAP SELECTED FINANCIAL INFORMATION
|
(NG) Non-GAAP Financial Measures (continued) |
|
|||||||||||||||||||
|
(Dollars in thousands) |
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||
|
Additional Non-GAAP Financial Information |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earning per share (GAAP) |
|
$ |
0.55 |
|
|
$ |
0.48 |
|
|
$ |
0.35 |
|
|
$ |
1.03 |
|
|
$ |
0.71 |
|
|
Diluted earning per share (non-GAAP) |
|
$ |
0.54 |
|
|
$ |
0.49 |
|
|
$ |
0.36 |
|
|
$ |
1.03 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
|
50.97 |
% |
|
|
54.10 |
% |
|
|
51.88 |
% |
|
|
52.50 |
% |
|
|
53.75 |
% |
|
Efficiency ratio (non-GAAP) |
|
|
51.52 |
% |
|
|
52.93 |
% |
|
|
51.11 |
% |
|
|
52.21 |
% |
|
|
53.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income to average assets (GAAP) |
|
|
0.75 |
% |
|
|
0.70 |
% |
|
|
0.91 |
% |
|
|
0.73 |
% |
|
|
0.89 |
% |
|
Non-interest income to average assets (non-GAAP) |
|
|
0.69 |
% |
|
|
0.70 |
% |
|
|
0.91 |
% |
|
|
0.70 |
% |
|
|
0.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense to average assets (GAAP) |
|
|
2.91 |
% |
|
|
3.04 |
% |
|
|
2.79 |
% |
|
|
2.97 |
% |
|
|
2.85 |
% |
|
Non-interest expense to average assets (non-GAAP) |
|
|
2.91 |
% |
|
|
2.97 |
% |
|
|
2.75 |
% |
|
|
2.94 |
% |
|
|
2.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
|
1.93 |
% |
|
|
1.70 |
% |
|
|
1.53 |
% |
|
|
1.82 |
% |
|
|
1.56 |
% |
|
Return on average assets (non-GAAP) |
|
|
1.88 |
% |
|
|
1.75 |
% |
|
|
1.56 |
% |
|
|
1.82 |
% |
|
|
1.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
|
15.60 |
% |
|
|
13.96 |
% |
|
|
10.91 |
% |
|
|
14.79 |
% |
|
|
11.17 |
% |
|
Return on average equity (non-GAAP) |
|
|
15.22 |
% |
|
|
14.38 |
% |
|
|
11.10 |
% |
|
|
14.80 |
% |
|
|
11.27 |
% |