For the year ended
Excluding
The current year results include a
Regarding the announced merger with Provident Financial,
Full Year 2022 Highlights
- Total assets grew
$2.59 billion or 32% to$10.78 billion atDecember 31, 2022 , including$1.97 billion due to the acquisition of 1stConstitution . - Loan growth for 2022 was very robust at
$1.89 billion or 32% resulting from acquired 1stConstitution loans totaling$1.10 billion and organic net loan growth of$794.6 million . - Net interest margin for 2022 increased 11 basis points to 3.24% compared to 2021 due primarily to increases in yields of interest-earning assets.
- Net loan charge-offs for the year totaled
$7.5 million , or 0.10% of average loans, of which$7.6 million were charge-offs of purchased credit deteriorated loans acquired from 1stConstitution .
Net Interest Margin and Net Interest Income
Net interest margin for the fourth quarter of 2022 of 3.28% increased 30 basis points compared to the fourth quarter of 2021 and remained flat compared to the third quarter of 2022. The increase compared to the fourth quarter of 2021 was primarily a result of an increase in the yield on loans and securities as well as an increase in loan balances, offset by an increase in interest-bearing liability balances and rates paid on those balances. Net interest margin for the full year of 2022 of 3.24% increased 11 basis points compared to 3.13% for 2021 for the same reasons as the fourth quarter comparison.
The yield on interest-earning assets for the fourth quarter of 2022 was 4.31% compared to 3.22% for the fourth quarter of 2021 and 3.90% for the third quarter of 2022. Yields on all categories of interest-earning assets increased when compared to the fourth quarter 2021, due primarily to the increases in market interest rates during 2022. In addition, average balances of interest-earning loans and securities increased by
The cost of interest-bearing liabilities increased in the fourth quarter of 2022 to 1.50% compared to 0.33% for the fourth quarter of 2021 and 0.94% for the third quarter of 2022. The cost of interest-bearing liabilities for 2022 was 0.80% compared to 0.42% during the same period in 2021. The increase in the cost of interest-bearing liabilities in 2022 compared to prior periods was largely driven by increases in market interest rates. Additionally, the Company's total average overnight borrowings increased during 2022 and the Company paid higher rates on those borrowings.
Net interest income increased to
Noninterest Income
Noninterest income increased
For 2022, noninterest income increased
Noninterest Expense
Noninterest expense totaled
For 2022, noninterest expense increased
Income Tax Expense
The effective tax rate for the fourth quarter of 2022 was 27.1% compared to 23.4% for the fourth quarter of 2021. The effective tax rate for both 2022 and 2021 was 25.4%. The effective tax rate for the fourth quarter of 2022 was primarily a result of the tax implications of executive accelerated vesting awards as well as tax-advantaged items decreasing as a percentage of pretax income.
Financial Condition
At
Asset Quality
At
Capital
At
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with
The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
Specifically, the Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.
These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying "Supplemental Information - Non-GAAP Financial Measures" and "Supplemental Information – Reconciliation of Net Income" for a reconciliation of non-GAAP financial measures.
About Lakeland
President & CEO | EVP & CFO |
Financial Highlights
(Unaudited)
Three Months Ended | Years Ended | ||||||||||||||
(dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||
Income Statement | |||||||||||||||
Net interest income | $ | 81,640 | $ | 59,029 | $ | 312,615 | $ | 234,835 | |||||||
(Provision) benefit for credit losses | 2,760 | (408 | ) | (8,514 | ) | 10,896 | |||||||||
Gain on investment securities transactions, net | — | — | — | 9 | |||||||||||
Gain on sales of loans | 269 | 399 | 2,765 | 2,264 | |||||||||||
Gain (loss) on equity securities | 11 | (94 | ) | (1,302 | ) | (285 | ) | ||||||||
Other noninterest income | 6,743 | 5,559 | 26,636 | 20,373 | |||||||||||
Long-term debt extinguishment costs | — | — | — | (831 | ) | ||||||||||
Merger-related expenses | (533 | ) | (710 | ) | (8,606 | ) | (1,782 | ) | |||||||
Other noninterest expense | (44,837 | ) | (34,840 | ) | (179,602 | ) | (138,144 | ) | |||||||
Pretax income | 46,053 | 28,935 | 143,992 | 127,335 | |||||||||||
Provision for income taxes | (12,476 | ) | (6,765 | ) | (36,623 | ) | (32,294 | ) | |||||||
Net income | $ | 33,577 | $ | 22,170 | $ | 107,369 | $ | 95,041 | |||||||
Basic earnings per common share | $ | 0.51 | $ | 0.43 | $ | 1.64 | $ | 1.85 | |||||||
Diluted earnings per common share | $ | 0.51 | $ | 0.43 | $ | 1.63 | $ | 1.85 | |||||||
Dividends paid per common share | $ | 0.145 | $ | 0.135 | $ | 0.570 | $ | 0.530 | |||||||
Weighted average shares - basic | 64,854 | 50,647 | 64,624 | 50,624 | |||||||||||
Weighted average shares - diluted | 65,222 | 50,959 | 64,918 | 50,870 | |||||||||||
Selected Operating Ratios | |||||||||||||||
Annualized return on average assets | 1.26 | % | 1.06 | % | 1.04 | % | 1.19 | % | |||||||
Annualized return on average common equity | 12.19 | % | 10.70 | % | 9.80 | % | 11.95 | % | |||||||
Annualized return on average tangible common equity (1) | 16.42 | % | 13.26 | % | 13.17 | % | 14.93 | % | |||||||
Annualized yield on interest-earning assets | 4.31 | % | 3.22 | % | 3.77 | % | 3.43 | % | |||||||
Annualized cost of interest-bearing liabilities | 1.50 | % | 0.33 | % | 0.80 | % | 0.42 | % | |||||||
Annualized net interest spread | 2.81 | % | 2.89 | % | 2.97 | % | 3.01 | % | |||||||
Annualized net interest margin | 3.28 | % | 2.98 | % | 3.24 | % | 3.13 | % | |||||||
Efficiency ratio (1) | 49.67 | % | 53.19 | % | 51.79 | % | 53.23 | % | |||||||
Stockholders' equity to total assets | 10.28 | % | 10.09 | % | |||||||||||
Book value per common share | $ | 17.09 | $ | 16.34 | |||||||||||
Tangible book value per common share (1) | $ | 12.76 | $ | 13.21 | |||||||||||
Tangible common equity to tangible assets (1) | 7.88 | % | 8.31 | % | |||||||||||
Asset Quality Ratios | |||||||||||||||
Ratio of allowance for credit losses on loans to total loans | 0.89 | % | 0.97 | % | |||||||||||
Non-performing loans to total loans | 0.22 | % | 0.28 | % | |||||||||||
Non-performing assets to total assets | 0.16 | % | 0.21 | % | |||||||||||
Net charge-offs to average loans | 0.10 | % | 0.04 | % | |||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||
Selected Balance Sheet Data at Period End | 2022 | 2021 | |||||||||||||
Loans | $ | 7,866,050 | $ | 5,976,148 | |||||||||||
Allowance for credit losses on loans | 70,264 | 58,047 | |||||||||||||
Investment securities | 2,037,386 | 1,621,329 | |||||||||||||
Total assets | 10,783,840 | 8,198,056 | |||||||||||||
Total deposits | 8,567,471 | 6,965,823 | |||||||||||||
Short-term borrowings | 728,797 | 106,453 | |||||||||||||
Other borrowings | 219,264 | 204,043 | |||||||||||||
Stockholders' equity | 1,108,587 | 827,014 |
Financial Highlights
(Unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Selected Average Balance Sheet Data | |||||||||||||||
Loans | $ | 7,729,510 | $ | 5,902,152 | $ | 7,376,839 | $ | 6,003,325 | |||||||
Investment securities | 2,145,252 | 1,423,650 | 2,128,870 | 1,160,503 | |||||||||||
Interest-earning assets | 9,923,173 | 7,874,181 | 9,694,234 | 7,516,662 | |||||||||||
Total assets | 10,534,884 | 8,332,637 | 10,307,245 | 7,974,905 | |||||||||||
Noninterest-bearing demand deposits | 2,240,197 | 1,775,119 | 2,267,867 | 1,671,889 | |||||||||||
Savings deposits | 1,001,870 | 670,039 | 1,094,399 | 642,298 | |||||||||||
Interest-bearing transaction accounts | 4,389,672 | 3,862,443 | 4,373,830 | 3,613,484 | |||||||||||
Time deposits | 1,100,911 | 781,199 | 922,935 | 882,379 | |||||||||||
Total deposits | 8,732,650 | 7,088,800 | 8,659,031 | 6,810,050 | |||||||||||
Short-term borrowings | 311,875 | 112,533 | 197,557 | 95,111 | |||||||||||
Other borrowings | 219,202 | 204,266 | 218,811 | 162,643 | |||||||||||
Total interest-bearing liabilities | 7,023,530 | 5,630,480 | 6,807,532 | 5,395,915 | |||||||||||
Stockholders' equity | 1,092,720 | 822,001 | 1,095,861 | 795,554 |
Consolidated Statements of Income
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
(in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest Income | ||||||||||||||||
Loans and fees | $ | 95,295 | $ | 57,773 | $ | 325,001 | $ | 237,037 | ||||||||
Federal funds sold and interest-bearing deposits with banks | 449 | 190 | 1,295 | 440 | ||||||||||||
Taxable investment securities and other | 10,769 | 4,966 | 35,352 | 17,208 | ||||||||||||
Tax exempt investment securities | 1,666 | 802 | 5,895 | 2,633 | ||||||||||||
Total Interest Income | 108,179 | 63,731 | 367,543 | 257,318 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 21,767 | 3,444 | 44,253 | 16,793 | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,771 | 20 | 3,658 | 78 | ||||||||||||
Other borrowings | 2,001 | 1,238 | 7,017 | 5,612 | ||||||||||||
Total Interest Expense | 26,539 | 4,702 | 54,928 | 22,483 | ||||||||||||
Net Interest Income | 81,640 | 59,029 | 312,615 | 234,835 | ||||||||||||
(Benefit) provision for credit losses | (2,760 | ) | 408 | 8,514 | (10,896 | ) | ||||||||||
Net Interest Income after (Benefit) Provision for Credit Losses | 84,400 | 58,621 | 304,101 | 245,731 | ||||||||||||
Noninterest Income | ||||||||||||||||
Service charges on deposit accounts | 2,840 | 2,579 | 10,985 | 9,856 | ||||||||||||
Commissions and fees | 2,243 | 1,977 | 9,116 | 6,939 | ||||||||||||
Income on bank owned life insurance | 862 | 754 | 3,980 | 2,676 | ||||||||||||
Gain (loss) on equity securities | 11 | (94 | ) | (1,302 | ) | (285 | ) | |||||||||
Gain on sales of loans | 269 | 399 | 2,765 | 2,264 | ||||||||||||
Gain on investment securities transactions, net | — | — | — | 9 | ||||||||||||
Swap income | 466 | — | 1,576 | 634 | ||||||||||||
Other income | 332 | 249 | 979 | 268 | ||||||||||||
Total Noninterest Income | 7,023 | 5,864 | 28,099 | 22,361 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Compensation and employee benefits | 26,914 | 20,186 | 108,167 | 82,589 | ||||||||||||
Premises and equipment | 7,657 | 6,171 | 30,882 | 24,773 | ||||||||||||
690 | 548 | 2,724 | 2,341 | |||||||||||||
Data processing | 1,258 | 1,405 | 6,238 | 5,454 | ||||||||||||
Merger-related expenses | 533 | 710 | 8,606 | 1,782 | ||||||||||||
Other operating expenses | 8,318 | 6,530 | 31,591 | 23,818 | ||||||||||||
Total Noninterest Expense | 45,370 | 35,550 | 188,208 | 140,757 | ||||||||||||
Income before provision for income taxes | 46,053 | 28,935 | 143,992 | 127,335 | ||||||||||||
Provision for income taxes | 12,476 | 6,765 | 36,623 | 32,294 | ||||||||||||
Net Income | $ | 33,577 | $ | 22,170 | $ | 107,369 | $ | 95,041 | ||||||||
Per Share of Common Stock | ||||||||||||||||
Basic earnings | $ | 0.51 | $ | 0.43 | $ | 1.64 | $ | 1.85 | ||||||||
Diluted earnings | $ | 0.51 | $ | 0.43 | $ | 1.63 | $ | 1.85 | ||||||||
Dividends | $ | 0.145 | $ | 0.135 | $ | 0.570 | $ | 0.530 |
Consolidated Balance Sheets
(dollars in thousands) | ||||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 223,299 | $ | 199,158 | ||||
Interest-bearing deposits due from banks | 12,651 | 29,372 | ||||||
Total cash and cash equivalents | 235,950 | 228,530 | ||||||
Investment securities available for sale, at estimated fair value (allowance for credit losses of | 1,054,312 | 769,956 | ||||||
Investment securities held to maturity (estimated fair value of | 923,308 | 824,956 | ||||||
Equity securities, at fair value | 17,283 | 17,368 | ||||||
42,483 | 9,049 | |||||||
Loans held for sale | 536 | 1,943 | ||||||
Loans, net of deferred fees | 7,866,050 | 5,976,148 | ||||||
Less: Allowance for credit losses | 70,264 | 58,047 | ||||||
Net loans | 7,795,786 | 5,918,101 | ||||||
Premises and equipment, net | 55,429 | 45,916 | ||||||
Operating lease right-of-use assets | 20,052 | 15,222 | ||||||
Accrued interest receivable | 33,374 | 19,209 | ||||||
271,829 | 156,277 | |||||||
Other identifiable intangible assets | 9,088 | 2,420 | ||||||
Bank owned life insurance | 156,985 | 117,356 | ||||||
Other assets | 167,425 | 71,753 | ||||||
Total Assets | $ | 10,783,840 | $ | 8,198,056 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 2,113,289 | $ | 1,732,452 | ||||
Savings and interest-bearing transaction accounts | 5,246,005 | 4,474,144 | ||||||
Time deposits | 901,505 | 623,393 | ||||||
Time deposits over | 306,672 | 135,834 | ||||||
Total deposits | 8,567,471 | 6,965,823 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 728,797 | 106,453 | ||||||
Other borrowings | 25,000 | 25,000 | ||||||
Subordinated debentures | 194,264 | 179,043 | ||||||
Operating lease liabilities | 21,449 | 16,523 | ||||||
Other liabilities | 138,272 | 78,200 | ||||||
Total Liabilities | 9,675,253 | 7,371,042 | ||||||
Stockholders' Equity | ||||||||
Common stock, no par value; authorized 100,000,000 shares; issued 65,002,738 shares and outstanding 64,871,703 shares at | 855,425 | 565,862 | ||||||
Retained earnings | 329,375 | 259,340 | ||||||
(1,452 | ) | (1,452 | ) | |||||
Accumulated other comprehensive (loss) income | (74,761 | ) | 3,264 | |||||
Total Stockholders' Equity | 1,108,587 | 827,014 | ||||||
Total Liabilities and Stockholders' Equity | $ | 10,783,840 | $ | 8,198,056 |
Financial Highlights
(Unaudited)
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share data) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 81,640 | $ | 80,285 | $ | 80,302 | $ | 70,388 | $ | 59,029 | ||||||||||
Benefit (provision) for credit losses | 2,760 | (1,358 | ) | (3,644 | ) | (6,272 | ) | (408 | ) | |||||||||||
Gain on investment securities transactions, net | — | — | — | — | — | |||||||||||||||
Gain on sales of loans | 269 | 355 | 715 | 1,426 | 399 | |||||||||||||||
Gain (loss) on equity securities | 11 | (464 | ) | (364 | ) | (485 | ) | (94 | ) | |||||||||||
Other noninterest income | 6,743 | 7,342 | 6,712 | 5,839 | 5,559 | |||||||||||||||
Merger-related expenses | (533 | ) | (3,488 | ) | — | (4,585 | ) | (710 | ) | |||||||||||
Other noninterest expense | (44,837 | ) | (44,323 | ) | (45,068 | ) | (45,374 | ) | (34,840 | ) | ||||||||||
Pretax income | 46,053 | 38,349 | 38,653 | 20,937 | 28,935 | |||||||||||||||
Provision for income taxes | (12,476 | ) | (9,603 | ) | (9,536 | ) | (5,008 | ) | (6,765 | ) | ||||||||||
Net income | $ | 33,577 | $ | 28,746 | $ | 29,117 | $ | 15,929 | $ | 22,170 | ||||||||||
Basic earnings per common share | $ | 0.51 | $ | 0.44 | $ | 0.44 | $ | 0.25 | $ | 0.43 | ||||||||||
Diluted earnings per common share | $ | 0.51 | $ | 0.44 | $ | 0.44 | $ | 0.25 | $ | 0.43 | ||||||||||
Dividends paid per common share | $ | 0.145 | $ | 0.145 | $ | 0.145 | $ | 0.135 | $ | 0.135 | ||||||||||
Dividends paid | $ | 9,505 | $ | 9,506 | $ | 9,507 | $ | 8,809 | $ | 6,921 | ||||||||||
Weighted average shares - basic | 64,854 | 64,842 | 64,828 | 63,961 | 50,647 | |||||||||||||||
Weighted average shares - diluted | 65,222 | 65,061 | 64,989 | 64,238 | 50,959 | |||||||||||||||
Selected Operating Ratios | ||||||||||||||||||||
Annualized return on average assets | 1.26 | % | 1.10 | % | 1.15 | % | 0.64 | % | 1.06 | % | ||||||||||
Annualized return on average common equity | 12.19 | % | 10.33 | % | 10.71 | % | 5.89 | % | 10.70 | % | ||||||||||
Annualized return on average tangible common equity (1) | 16.42 | % | 13.87 | % | 14.45 | % | 7.88 | % | 13.26 | % | ||||||||||
Annualized net interest margin | 3.28 | % | 3.28 | % | 3.38 | % | 3.02 | % | 2.98 | % | ||||||||||
Efficiency ratio (1) | 49.67 | % | 49.76 | % | 50.69 | % | 57.77 | % | 53.19 | % | ||||||||||
Common stockholders' equity to total assets | 10.28 | % | 10.29 | % | 10.51 | % | 10.60 | % | 10.09 | % | ||||||||||
Tangible common equity to tangible assets (1) | 7.88 | % | 7.83 | % | 8.01 | % | 8.07 | % | 8.31 | % | ||||||||||
Tier 1 risk-based ratio | 11.24 | % | 11.16 | % | 11.12 | % | 11.34 | % | 11.15 | % | ||||||||||
Total risk-based ratio | 13.83 | % | 13.78 | % | 13.74 | % | 14.03 | % | 14.48 | % | ||||||||||
Tier 1 leverage ratio | 9.16 | % | 9.10 | % | 9.05 | % | 8.97 | % | 8.51 | % | ||||||||||
Common equity tier 1 capital ratio | 10.71 | % | 10.62 | % | 10.57 | % | 10.72 | % | 10.67 | % | ||||||||||
Book value per common share | $ | 17.09 | $ | 16.70 | $ | 16.82 | $ | 16.82 | $ | 16.34 | ||||||||||
Tangible book value per common share (1) | $ | 12.76 | $ | 12.36 | $ | 12.47 | $ | 12.45 | $ | 13.21 |
(1) See Supplemental Information - Non-GAAP Financial Measures
Financial Highlights
(Unaudited)
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
Selected Balance Sheet Data at Period End | ||||||||||||||||||||
Loans | $ | 7,866,050 | $ | 7,568,826 | $ | 7,408,540 | $ | 7,137,793 | $ | 5,976,148 | ||||||||||
Allowance for credit losses on loans | 70,264 | 68,879 | 68,836 | 67,112 | 58,047 | |||||||||||||||
Investment securities | 2,037,386 | 2,047,186 | 2,124,213 | 2,139,054 | 1,621,329 | |||||||||||||||
Total assets | 10,783,840 | 10,515,599 | 10,374,178 | 10,275,233 | 8,198,056 | |||||||||||||||
Total deposits | 8,567,471 | 8,677,799 | 8,501,804 | 8,748,909 | 6,965,823 | |||||||||||||||
Short-term borrowings | 728,797 | 357,787 | 432,206 | 102,911 | 106,453 | |||||||||||||||
Other borrowings | 219,264 | 219,148 | 219,027 | 218,904 | 204,043 | |||||||||||||||
Stockholders' equity | 1,108,587 | 1,082,406 | 1,090,145 | 1,089,282 | 827,014 | |||||||||||||||
Loans | ||||||||||||||||||||
Non owner occupied commercial | $ | 2,906,014 | $ | 2,873,824 | $ | 2,777,003 | $ | 2,639,784 | $ | 2,316,284 | ||||||||||
Owner occupied commercial | 1,246,189 | 1,141,290 | 1,179,527 | 1,122,754 | 908,449 | |||||||||||||||
Multifamily | 1,260,814 | 1,186,036 | 1,134,938 | 1,104,206 | 972,233 | |||||||||||||||
Non owner occupied residential | 218,026 | 222,597 | 221,339 | 225,795 | 177,097 | |||||||||||||||
Commercial, industrial and other | 606,276 | 612,494 | 647,531 | 620,611 | 405,832 | |||||||||||||||
Paycheck Protection Program | 435 | 734 | 10,404 | 36,785 | 56,574 | |||||||||||||||
Construction | 380,100 | 381,109 | 370,777 | 404,186 | 302,228 | |||||||||||||||
Equipment finance | 151,575 | 137,999 | 134,136 | 123,943 | 123,212 | |||||||||||||||
Residential mortgages | 765,552 | 690,453 | 622,417 | 564,042 | 438,710 | |||||||||||||||
Consumer and home equity | 331,069 | 322,290 | 310,468 | 295,687 | 275,529 | |||||||||||||||
Total loans | $ | 7,866,050 | $ | 7,568,826 | $ | 7,408,540 | $ | 7,137,793 | $ | 5,976,148 | ||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 2,113,289 | $ | 2,288,902 | $ | 2,330,550 | $ | 2,300,030 | $ | 1,732,452 | ||||||||||
Savings and interest-bearing transaction accounts | 5,246,005 | 5,354,716 | 5,407,212 | 5,602,674 | 4,474,144 | |||||||||||||||
Time deposits | 1,208,177 | 1,034,181 | 764,042 | 846,205 | 759,227 | |||||||||||||||
Total deposits | $ | 8,567,471 | $ | 8,677,799 | $ | 8,501,804 | $ | 8,748,909 | $ | 6,965,823 | ||||||||||
Total loans to total deposits ratio | 91.8 | % | 87.2 | % | 87.1 | % | 81.6 | % | 85.8 | % | ||||||||||
Selected Average Balance Sheet Data | ||||||||||||||||||||
Loans | $ | 7,729,510 | $ | 7,517,878 | $ | 7,229,175 | $ | 7,021,462 | $ | 5,902,152 | ||||||||||
Investment securities | 2,145,252 | 2,160,719 | 2,188,199 | 2,019,578 | 1,423,650 | |||||||||||||||
Interest-earning assets | 9,923,173 | 9,755,797 | 9,588,396 | 9,504,287 | 7,874,181 | |||||||||||||||
Total assets | 10,534,884 | 10,358,600 | 10,192,140 | 10,138,437 | 8,332,637 | |||||||||||||||
Noninterest-bearing demand deposits | 2,240,197 | 2,325,391 | 2,310,702 | 2,194,038 | 1,775,119 | |||||||||||||||
Savings deposits | 1,001,870 | 1,092,222 | 1,153,591 | 1,131,359 | 670,039 | |||||||||||||||
Interest-bearing transaction accounts | 4,389,672 | 4,337,559 | 4,369,067 | 4,399,531 | 3,862,443 | |||||||||||||||
Time deposits | 1,100,911 | 905,735 | 803,421 | 879,427 | 781,199 | |||||||||||||||
Total deposits | 8,732,650 | 8,660,907 | 8,636,781 | 8,604,355 | 7,088,800 | |||||||||||||||
Short-term borrowings | 311,875 | 240,728 | 130,242 | 104,633 | 112,533 | |||||||||||||||
Other borrowings | 219,202 | 219,082 | 218,958 | 217,983 | 204,266 | |||||||||||||||
Total interest-bearing liabilities | 7,023,530 | 6,795,326 | 6,675,279 | 6,732,933 | 5,630,480 | |||||||||||||||
Stockholders' equity | 1,092,720 | 1,104,145 | 1,090,613 | 1,095,913 | 822,001 |
Financial Highlights
(Unaudited)
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
Average Annualized Yields (Taxable Equivalent Basis) and Costs | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Loans | 4.84 | % | 4.43 | % | 4.22 | % | 3.92 | % | 3.88 | % | ||||||||||
Taxable investment securities and other | 2.41 | % | 2.12 | % | 1.81 | % | 1.60 | % | 1.60 | % | ||||||||||
Tax-exempt securities | 2.36 | % | 2.12 | % | 2.02 | % | 1.91 | % | 2.20 | % | ||||||||||
Federal funds sold and interest-bearing cash accounts | 3.68 | % | 2.21 | % | 0.55 | % | 0.16 | % | 0.14 | % | ||||||||||
Total interest-earning assets | 4.31 | % | 3.90 | % | 3.61 | % | 3.25 | % | 3.22 | % | ||||||||||
Liabilities | ||||||||||||||||||||
Savings accounts | 0.29 | % | 0.25 | % | 0.18 | % | 0.17 | % | 0.05 | % | ||||||||||
Interest-bearing transaction accounts | 1.46 | % | 0.97 | % | 0.33 | % | 0.25 | % | 0.24 | % | ||||||||||
Time deposits | 1.77 | % | 1.00 | % | 0.39 | % | 0.40 | % | 0.51 | % | ||||||||||
Borrowings | 3.52 | % | 2.15 | % | 2.04 | % | 1.95 | % | 1.55 | % | ||||||||||
Total interest-bearing liabilities | 1.50 | % | 0.94 | % | 0.40 | % | 0.34 | % | 0.33 | % | ||||||||||
Net interest spread (taxable equivalent basis) | 2.81 | % | 2.96 | % | 3.22 | % | 2.92 | % | 2.89 | % | ||||||||||
Annualized net interest margin (taxable equivalent basis) | 3.28 | % | 3.28 | % | 3.38 | % | 3.02 | % | 2.98 | % | ||||||||||
Annualized cost of deposits | 0.99 | % | 0.62 | % | 0.22 | % | 0.19 | % | 0.19 | % | ||||||||||
Asset Quality Data | ||||||||||||||||||||
Allowance for Credit Losses on Loans | ||||||||||||||||||||
Balance at beginning of period | $ | 68,879 | $ | 68,836 | $ | 67,112 | $ | 58,047 | $ | 57,953 | ||||||||||
Initial allowance for credit losses on purchased credit deteriorated loans | — | — | — | 12,077 | — | |||||||||||||||
Charge-offs on purchased credit deteriorated loans | — | — | — | (7,634 | ) | — | ||||||||||||||
Provision (benefit) for credit losses on loans | 1,464 | 11 | 1,583 | 4,630 | (87 | ) | ||||||||||||||
Charge-offs | (138 | ) | (56 | ) | (365 | ) | (170 | ) | (461 | ) | ||||||||||
Recoveries | 59 | 88 | 506 | 162 | 642 | |||||||||||||||
Balance at end of period | $ | 70,264 | $ | 68,879 | $ | 68,836 | $ | 67,112 | $ | 58,047 | ||||||||||
Net Loan Charge-Offs (Recoveries) | ||||||||||||||||||||
Non owner occupied commercial | $ | — | $ | — | $ | (4 | ) | $ | 4 | $ | — | |||||||||
Owner occupied commercial | — | — | (337 | ) | 24 | (1 | ) | |||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||
Non owner occupied residential | — | — | — | (14 | ) | (136 | ) | |||||||||||||
Commercial, industrial and other | (24 | ) | (49 | ) | 272 | 778 | (449 | ) | ||||||||||||
Construction | — | — | — | 6,804 | (4 | ) | ||||||||||||||
Equipment finance | 51 | (23 | ) | (40 | ) | 82 | 60 | |||||||||||||
Residential mortgages | — | — | — | (48 | ) | 49 | ||||||||||||||
Consumer and home equity | 52 | 40 | (32 | ) | 12 | 300 | ||||||||||||||
Net (recoveries) charge-offs | $ | 79 | $ | (32 | ) | $ | (141 | ) | $ | 7,642 | $ | (181 | ) |
Financial Highlights
(Unaudited)
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
Non-Performing Assets | ||||||||||||||||||||
Non owner occupied commercial | $ | 618 | $ | 307 | $ | 324 | $ | 5,482 | $ | 3,009 | ||||||||||
Owner occupied commercial | 9,439 | 10,322 | 12,587 | 2,626 | 2,810 | |||||||||||||||
Non owner occupied residential | 441 | 868 | 839 | 2,430 | 2,852 | |||||||||||||||
Construction | 2,978 | 3,623 | 4,882 | 6,098 | 6,763 | |||||||||||||||
Commercial, industrial and other | 980 | — | — | 220 | — | |||||||||||||||
Equipment financing | 114 | 226 | 112 | 51 | 43 | |||||||||||||||
Residential mortgages | 2,011 | 2,226 | 2,249 | 1,935 | 817 | |||||||||||||||
Consumer and home equity | 781 | 798 | 1,168 | 898 | 687 | |||||||||||||||
Total non-performing assets | $ | 17,362 | $ | 18,370 | $ | 22,161 | $ | 19,740 | $ | 16,981 | ||||||||||
Loans past due 90 days or more and still accruing | $ | — | $ | 31 | $ | — | $ | — | $ | 1 | ||||||||||
Loans restructured and still accruing | 2,640 | 3,113 | 3,189 | 3,290 | 3,342 | |||||||||||||||
Ratio of allowance for credit losses on loans to total loans | 0.89 | % | 0.91 | % | 0.93 | % | 0.94 | % | 0.97 | % | ||||||||||
Total non-accrual loans to total loans | 0.22 | % | 0.24 | % | 0.30 | % | 0.28 | % | 0.28 | % | ||||||||||
Total non-performing assets to total assets | 0.16 | % | 0.17 | % | 0.21 | % | 0.19 | % | 0.21 | % | ||||||||||
Annualized net (recoveries) charge-offs to average loans | — | % | — | % | (0.01 | )% | 0.44 | % | (0.01 | )% |
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
At or for the Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
Calculation of Tangible Book Value Per Common Share | ||||||||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 1,108,587 | $ | 1,082,406 | $ | 1,090,145 | $ | 1,089,282 | $ | 827,014 | ||||||||||
Less: | 271,829 | 271,829 | 271,829 | 271,829 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 9,088 | 9,669 | 10,250 | 10,842 | 2,420 | |||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 827,670 | $ | 800,908 | $ | 808,066 | $ | 806,611 | $ | 668,317 | ||||||||||
Shares outstanding at end of period | 64,872 | 64,804 | 64,794 | 64,780 | 50,606 | |||||||||||||||
Book value per share - GAAP | $ | 17.09 | $ | 16.70 | $ | 16.82 | $ | 16.82 | $ | 16.34 | ||||||||||
Tangible book value per share - Non-GAAP | $ | 12.76 | $ | 12.36 | $ | 12.47 | $ | 12.45 | $ | 13.21 | ||||||||||
Calculation of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 827,670 | $ | 800,908 | $ | 808,066 | $ | 806,611 | $ | 668,317 | ||||||||||
Total assets at end of period - GAAP | $ | 10,783,840 | $ | 10,515,599 | $ | 10,374,178 | $ | 10,275,233 | $ | 8,198,056 | ||||||||||
Less: | 271,829 | 271,829 | 271,829 | 271,829 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 9,088 | 9,669 | 10,250 | 10,842 | 2,420 | |||||||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 10,502,923 | $ | 10,234,101 | $ | 10,092,099 | $ | 9,992,562 | $ | 8,039,359 | ||||||||||
Common equity to assets - GAAP | 10.28 | % | 10.29 | % | 10.51 | % | 10.60 | % | 10.09 | % | ||||||||||
Tangible common equity to tangible assets - Non-GAAP | 7.88 | % | 7.83 | % | 8.01 | % | 8.07 | % | 8.31 | % | ||||||||||
Calculation of Return on Average Tangible Common Equity | ||||||||||||||||||||
Net income - GAAP | $ | 33,577 | $ | 28,746 | $ | 29,117 | $ | 15,929 | $ | 22,170 | ||||||||||
Total average common stockholders' equity - GAAP | $ | 1,092,720 | $ | 1,104,145 | $ | 1,090,613 | $ | 1,095,913 | $ | 822,001 | ||||||||||
Less: Average goodwill | 271,829 | 271,829 | 271,829 | 265,409 | 156,277 | |||||||||||||||
Less: Average other identifiable intangible assets | 9,386 | 9,982 | 10,569 | 10,851 | 2,544 | |||||||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 811,505 | $ | 822,334 | $ | 808,215 | $ | 819,653 | $ | 663,180 | ||||||||||
Return on average common stockholders' equity - GAAP | 12.19 | % | 10.33 | % | 10.71 | % | 5.89 | % | 10.70 | % | ||||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 16.42 | % | 13.87 | % | 14.45 | % | 7.88 | % | 13.26 | % | ||||||||||
Calculation of Efficiency Ratio | ||||||||||||||||||||
Total noninterest expense | $ | 45,370 | $ | 47,811 | $ | 45,068 | $ | 49,959 | $ | 35,550 | ||||||||||
Less: | ||||||||||||||||||||
Amortization of core deposit intangibles | 581 | 581 | 593 | 596 | 210 | |||||||||||||||
Merger-related expenses | 533 | 3,488 | — | 4,585 | 710 | |||||||||||||||
Noninterest expense, as adjusted | $ | 44,256 | $ | 43,742 | $ | 44,475 | $ | 44,778 | $ | 34,630 | ||||||||||
Net interest income | $ | 81,640 | $ | 80,285 | $ | 80,302 | $ | 70,388 | $ | 59,029 | ||||||||||
Total noninterest income | 7,023 | 7,233 | 7,063 | 6,780 | 5,864 | |||||||||||||||
Total revenue | $ | 88,663 | $ | 87,518 | $ | 87,365 | $ | 77,168 | $ | 64,893 | ||||||||||
Tax-equivalent adjustment on municipal securities | 443 | 395 | 382 | 346 | 213 | |||||||||||||||
Total revenue, as adjusted | $ | 89,106 | $ | 87,913 | $ | 87,747 | $ | 77,514 | $ | 65,106 | ||||||||||
Efficiency ratio - Non-GAAP | 49.67 | % | 49.76 | % | 50.69 | % | 57.77 | % | 53.19 | % |
Supplemental Information - Non-GAAP Financial Measures
(Unaudited)
For the Twelve Months Ended | ||||||||
(dollars in thousands) | 2022 | 2021 | ||||||
Calculation of Return on Average Tangible Common Equity | ||||||||
Net income - GAAP | $ | 107,369 | $ | 95,041 | ||||
Total average common stockholders' equity - GAAP | $ | 1,095,861 | $ | 795,554 | ||||
Less: Average goodwill | 270,246 | 156,277 | ||||||
Less: Average other identifiable intangible assets | 10,192 | 2,866 | ||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 815,423 | $ | 636,411 | ||||
Return on average common stockholders' equity - GAAP | 9.80 | % | 11.95 | % | ||||
Return on average tangible common stockholders' equity - Non-GAAP | 13.17 | % | 14.93 | % | ||||
Calculation of Efficiency Ratio | ||||||||
Total noninterest expense | $ | 188,208 | $ | 140,757 | ||||
Less: | ||||||||
Amortization of core deposit intangibles | 2,351 | 868 | ||||||
Merger-related expenses | 8,606 | 1,782 | ||||||
Long-term debt extinguishment costs | — | 831 | ||||||
Noninterest expense, as adjusted | $ | 177,251 | $ | 137,276 | ||||
Net interest income | $ | 312,615 | $ | 234,835 | ||||
Noninterest income | 28,099 | 22,361 | ||||||
Total revenue | $ | 340,714 | $ | 257,196 | ||||
Tax-equivalent adjustment on municipal securities | 1,567 | 700 | ||||||
Less: Gain on sales and calls of investment securities | — | 9 | ||||||
Total revenue, as adjusted | $ | 342,281 | $ | 257,887 | ||||
Efficiency ratio - Non-GAAP | 51.79 | % | 53.23 | % |
Supplemental Information - Reconciliation of Net Income
(Unaudited)
For the Three Months Ended | For the Year Ended | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Calculation of EPS excluding non-routine transactions | ||||||||||||||||
Net income - GAAP | $ | 33,577 | $ | 22,170 | $ | 107,369 | $ | 95,041 | ||||||||
Non-Routine Transactions: | ||||||||||||||||
Long-term debt extinguishment costs | $ | — | $ | — | $ | — | $ | 831 | ||||||||
Tax deductible merger-related expenses | 54 | 302 | 5,590 | 802 | ||||||||||||
Tax effect on tax deductible non-routine transactions | (16 | ) | (91 | ) | (1,682 | ) | (491 | ) | ||||||||
Non-tax deductible merger-related expenses | 479 | 408 | 3,016 | 980 | ||||||||||||
Effect of non-routine transactions, net of tax | $ | 517 | $ | 619 | $ | 6,924 | $ | 2,122 | ||||||||
Net income available to common shareholders excluding non-routine transactions | $ | 34,094 | $ | 22,789 | $ | 114,293 | $ | 97,163 | ||||||||
Less: Earnings allocated to participating securities | 390 | 303 | 1,236 | 1,142 | ||||||||||||
Net income, excluding non-routine transactions | $ | 33,704 | $ | 22,486 | $ | 113,057 | $ | 96,021 | ||||||||
Weighted average shares - Basic | 64,854 | 50,647 | 64,624 | 50,624 | ||||||||||||
Weighted average shares - Diluted | 65,222 | 50,959 | 64,918 | 50,870 | ||||||||||||
Basic earnings per share - GAAP | $ | 0.51 | $ | 0.43 | $ | 1.64 | $ | 1.85 | ||||||||
Diluted earnings per share - GAAP | $ | 0.51 | $ | 0.43 | $ | 1.63 | $ | 1.85 | ||||||||
Basic earnings per share, adjusted for non-routine transactions | $ | 0.52 | $ | 0.44 | $ | 1.75 | $ | 1.90 | ||||||||
Diluted earnings per share, adjusted for non-routine transactions | $ | 0.52 | $ | 0.44 | $ | 1.74 | $ | 1.89 | ||||||||
Calculation of return on average assets excluding non-routine transactions | ||||||||||||||||
Net Income, excluding non-routine transactions | $ | 34,094 | $ | 22,789 | $ | 114,293 | $ | 97,163 | ||||||||
Average assets | 10,534,884 | 8,332,637 | 10,307,245 | 7,974,905 | ||||||||||||
Return on average assets - GAAP | 1.26 | % | 1.06 | % | 1.04 | % | 1.19 | % | ||||||||
Return on average assets, adjusted for non-routine transactions | 1.28 | % | 1.09 | % | 1.11 | % | 1.22 | % | ||||||||
Calculation of return on average equity excluding non-routine transactions | ||||||||||||||||
Net Income, excluding non-routine transactions | $ | 34,094 | $ | 22,789 | $ | 114,293 | $ | 97,163 | ||||||||
Total average common stockholders' equity | 1,092,720 | 822,001 | 1,095,861 | 795,554 | ||||||||||||
Return on average common stockholders' equity - GAAP | 12.19 | % | 10.70 | % | 9.80 | % | 11.95 | % | ||||||||
Return on average common stockholders' equity, adjusted for non-routine transactions | 12.38 | % | 11 | % | 10.43 | % | 12.21 | % | ||||||||
Calculation of return on average tangible common equity excluding non-routine transactions | ||||||||||||||||
Net Income, excluding non-routine transactions | $ | 34,094 | $ | 22,789 | $ | 114,293 | $ | 97,163 | ||||||||
Total average tangible common stockholders' equity - Non-GAAP | 811,505 | 663,180 | 815,423 | 636,411 | ||||||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 16.42 | % | 13.26 | % | 13.17 | % | 14.93 | % | ||||||||
Return on average tangible common stockholders' equity - Non-GAAP, adjusted for non-routine transactions | 16.67 | % | 13.63 | % | 14.02 | % | 15.27 | % |
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