First Quarter 2024 Highlights
- Net income of
$26.7 million , or$1.58 per diluted share - Capital Markets Revenue of
$16.5 million - Annualized core deposit growth, excluding brokered deposits, of 20.3%
- Increase in tangible book value (non-GAAP) per share of
$1.12 , or 10.2% annualized - TCE/TA ratio (non-GAAP) improved by 19 basis points to 8.94%
Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the first quarter of 2024 were
For the Quarter Ended | ||||||||
$ in millions (except per share data) | 2024 | 2023 | 2023 | |||||
Net Income | $ | 26.7 | $ | 32.9 | $ | 27.2 | ||
Diluted EPS | $ | 1.58 | $ | 1.95 | $ | 1.60 | ||
Adjusted Net Income (non-GAAP)* | $ | 26.9 | $ | 33.3 | $ | 28.0 | ||
Adjusted Diluted EPS (non-GAAP)* | $ | 1.59 | $ | 1.97 | $ | 1.65 | ||
*Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.
“We delivered strong first quarter results, highlighted by significant fee income and continued growth in both our core deposit and loan balances,” said
“Our bankers grew core deposits significantly during the quarter, adding to our strong and diversified deposit franchise. As a result, our ratio of loans held for investment to deposits improved to 93.6%,” added
Net Interest Income of
Net interest income for the first quarter of 2024 totaled
In the first quarter of 2024, net interest margin (“NIM”) was 2.82% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.25%, down from 2.90% and 3.32% in the prior quarter, respectively. Adjusted
“Our adjusted NIM, on a tax equivalent yield basis, declined by 5 basis points from the fourth quarter of 2023 to 3.24% and was at the low end of our guidance range,” said
Strong Noninterest Income Including
Noninterest income for the first quarter of 2024 totaled
“Our capital markets revenue was
Well-Controlled Noninterest Expenses of
Noninterest expense for the first quarter of 2024 totaled
Exceptional Core Deposit Growth and Increased Liquidity
During the first quarter of 2024, the Company’s core deposits, which exclude brokered deposits, increased by
Total uninsured and uncollateralized deposits remain very low at 20% of total deposits as of the end of the first quarter 2024, as compared to 18% as of the end of the fourth quarter of 2023. The Company increased its liquidity and maintained approximately
Continued Strong Loan Growth
During the first quarter of 2024, the Company’s total loans and leases grew
“Our ongoing strong performance validates our differentiated relationship-based community banking model as well as the underlying economic resiliency across our markets,” added
Asset Quality Remains Excellent
Nonperforming assets (“NPAs”) totaled
The Company recorded a total provision for credit losses of
Continued Strong Capital Levels
As of
The Company’s tangible book value per share (non-GAAP) increased by
Conference Call Details
The Company will host an earnings call/webcast tomorrow,
About Us
Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing Israeli-Palestinian conflict and the Russian invasion of
Contact:
President
Chief Financial Officer
(309) 743-7745
tgipple@qcrh.com
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
As of | |||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||
(dollars in thousands) | |||||||||||||||
CONDENSED BALANCE SHEET | |||||||||||||||
Cash and due from banks | $ | 80,988 | $ | 97,123 | $ | 104,265 | $ | 84,084 | $ | 64,295 | |||||
Federal funds sold and interest-bearing deposits | 77,020 | 140,369 | 80,650 | 175,012 | 253,997 | ||||||||||
Securities, net of allowance for credit losses | 1,031,861 | 1,005,528 | 896,394 | 882,888 | 877,446 | ||||||||||
Loans receivable held for sale (1) | 275,344 | 2,594 | 278,893 | 295,057 | 140,633 | ||||||||||
Loans/leases receivable held for investment | 6,372,992 | 6,540,822 | 6,327,414 | 6,084,263 | 6,049,389 | ||||||||||
Allowance for credit losses | (84,470 | ) | (87,200 | ) | (87,669 | ) | (85,797 | ) | (86,573 | ) | |||||
Intangibles | 13,131 | 13,821 | 14,537 | 15,228 | 15,993 | ||||||||||
139,027 | 139,027 | 139,027 | 139,027 | 138,474 | |||||||||||
Derivatives | 183,888 | 188,978 | 291,295 | 170,294 | 130,350 | ||||||||||
Other assets | 509,768 | 497,832 | 495,251 | 466,617 | 452,900 | ||||||||||
Total assets | $ | 8,599,549 | $ | 8,538,894 | $ | 8,540,057 | $ | 8,226,673 | $ | 8,036,904 | |||||
Total deposits | $ | 6,806,775 | $ | 6,514,005 | $ | 6,494,852 | $ | 6,606,720 | $ | 6,501,663 | |||||
Total borrowings | 489,633 | 718,295 | 712,126 | 418,368 | 417,480 | ||||||||||
Derivatives | 211,677 | 214,098 | 320,220 | 195,841 | 150,401 | ||||||||||
Other liabilities | 184,122 | 205,900 | 184,476 | 183,055 | 165,866 | ||||||||||
Total stockholders' equity | 907,342 | 886,596 | 828,383 | 822,689 | 801,494 | ||||||||||
Total liabilities and stockholders' equity | $ | 8,599,549 | $ | 8,538,894 | $ | 8,540,057 | $ | 8,226,673 | $ | 8,036,904 | |||||
ANALYSIS OF LOAN PORTFOLIO | |||||||||||||||
Loan/lease mix: (2) | |||||||||||||||
Commercial and industrial - revolving | $ | 326,129 | $ | 325,243 | $ | 299,588 | $ | 304,617 | $ | 307,612 | |||||
Commercial and industrial - other | 1,374,333 | 1,390,068 | 1,381,967 | 1,308,853 | 1,322,384 | ||||||||||
Commercial and industrial - other - LIHTC | 96,276 | 91,710 | 105,601 | 93,700 | 97,947 | ||||||||||
Total commercial and industrial | 1,796,738 | 1,807,021 | 1,787,156 | 1,707,170 | 1,727,943 | ||||||||||
Commercial real estate, owner occupied | 621,069 | 607,365 | 610,618 | 609,717 | 616,922 | ||||||||||
Commercial real estate, non-owner occupied | 1,055,089 | 1,008,892 | 955,552 | 963,814 | 982,716 | ||||||||||
Construction and land development | 410,918 | 477,424 | 472,695 | 437,682 | 448,261 | ||||||||||
Construction and land development - LIHTC | 738,609 | 943,101 | 921,359 | 870,084 | 759,924 | ||||||||||
Multi-family | 296,245 | 284,721 | 282,541 | 280,418 | 229,370 | ||||||||||
Multi-family - LIHTC | 1,007,321 | 711,422 | 874,439 | 820,376 | 740,500 | ||||||||||
Direct financing leases | 28,089 | 31,164 | 34,401 | 32,937 | 35,373 | ||||||||||
1-4 family real estate | 563,358 | 544,971 | 539,931 | 535,405 | 532,491 | ||||||||||
Consumer | 130,900 | 127,335 | 127,615 | 121,717 | 116,522 | ||||||||||
Total loans/leases | $ | 6,648,336 | $ | 6,543,416 | $ | 6,606,307 | $ | 6,379,320 | $ | 6,190,022 | |||||
Less allowance for credit losses | 84,470 | 87,200 | 87,669 | 85,797 | 86,573 | ||||||||||
Net loans/leases | $ | 6,563,866 | $ | 6,456,216 | $ | 6,518,638 | $ | 6,293,523 | $ | 6,103,449 | |||||
ANALYSIS OF SECURITIES PORTFOLIO | |||||||||||||||
Securities mix: | |||||||||||||||
$ | 14,442 | $ | 14,973 | $ | 16,002 | $ | 18,942 | $ | 19,320 | ||||||
Municipal securities | 884,469 | 853,645 | 764,017 | 743,608 | 731,689 | ||||||||||
Residential mortgage-backed and related securities | 56,071 | 59,196 | 57,946 | 60,958 | 63,104 | ||||||||||
Asset backed securities | 14,285 | 15,423 | 16,326 | 17,393 | 17,967 | ||||||||||
Other securities | 40,539 | 41,115 | 43,272 | 43,156 | 46,535 | ||||||||||
Trading securities | 22,258 | 22,368 | - | - | - | ||||||||||
Total securities (3) | $ | 1,032,064 | $ | 1,006,720 | $ | 897,563 | $ | 884,057 | $ | 878,615 | |||||
Less allowance for credit losses | 203 | 1,192 | 1,169 | 1,169 | 1,169 | ||||||||||
Net securities | $ | 1,031,861 | $ | 1,005,528 | $ | 896,394 | $ | 882,888 | $ | 877,446 | |||||
ANALYSIS OF DEPOSITS | |||||||||||||||
Deposit mix: | |||||||||||||||
Noninterest-bearing demand deposits | $ | 955,167 | $ | 1,038,689 | $ | 1,027,791 | $ | 1,101,605 | $ | 1,189,858 | |||||
Interest-bearing demand deposits | 4,714,555 | 4,338,390 | 4,416,725 | 4,374,847 | 4,033,193 | ||||||||||
Time deposits | 875,491 | 851,950 | 788,692 | 765,801 | 679,946 | ||||||||||
Brokered deposits | 261,562 | 284,976 | 261,644 | 364,467 | 598,666 | ||||||||||
Total deposits | $ | 6,806,775 | $ | 6,514,005 | $ | 6,494,852 | $ | 6,606,720 | $ | 6,501,663 | |||||
ANALYSIS OF BORROWINGS | |||||||||||||||
Borrowings mix: | |||||||||||||||
Term FHLB advances | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 135,000 | |||||
Overnight FHLB advances | 70,000 | 300,000 | 295,000 | - | - | ||||||||||
Other short-term borrowings | 2,700 | 1,500 | 470 | 1,850 | 1,100 | ||||||||||
Subordinated notes | 233,170 | 233,064 | 232,958 | 232,852 | 232,746 | ||||||||||
Junior subordinated debentures | 48,763 | 48,731 | 48,698 | 48,666 | 48,634 | ||||||||||
Total borrowings | $ | 489,633 | $ | 718,295 | $ | 712,126 | $ | 418,368 | $ | 417,480 | |||||
(1) Loans with a fair value of | |||||||||||||||
(2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were | |||||||||||||||
(3) As of | |||||||||||||||
Consolidated Financial Highlights | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Quarter Ended | ||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
INCOME STATEMENT | ||||||||||||||
Interest income | $ | 115,049 | $ | 112,248 | $ | 108,568 | $ | 98,377 | $ | 94,217 | ||||
Interest expense | 60,350 | 56,512 | 53,313 | 45,172 | 37,407 | |||||||||
Net interest income | 54,699 | 55,736 | 55,255 | 53,205 | 56,810 | |||||||||
Provision for credit losses | 2,969 | 5,199 | 3,806 | 3,606 | 3,928 | |||||||||
Net interest income after provision for credit losses | $ | 51,730 | $ | 50,537 | $ | 51,449 | $ | 49,599 | $ | 52,882 | ||||
Trust fees | $ | 3,199 | $ | 3,084 | $ | 2,863 | $ | 2,844 | $ | 2,906 | ||||
Investment advisory and management fees | 1,101 | 1,052 | 947 | 986 | 879 | |||||||||
Deposit service fees | 2,022 | 2,008 | 2,107 | 2,034 | 2,028 | |||||||||
Gains on sales of residential real estate loans, net | 382 | 323 | 476 | 500 | 312 | |||||||||
Gains on sales of government guaranteed portions of loans, net | 24 | 24 | - | - | 30 | |||||||||
Capital markets revenue | 16,457 | 36,956 | 15,596 | 22,490 | 17,023 | |||||||||
Securities gains (losses), net | - | - | - | 12 | (463 | ) | ||||||||
Earnings on bank-owned life insurance | 868 | 832 | 1,807 | 838 | 707 | |||||||||
Debit card fees | 1,466 | 1,561 | 1,584 | 1,589 | 1,466 | |||||||||
Correspondent banking fees | 512 | 465 | 450 | 356 | 391 | |||||||||
Loan related fee income | 836 | 845 | 800 | 770 | 651 | |||||||||
Fair value gain (loss) on derivatives | (163 | ) | (582 | ) | (336 | ) | 83 | (427 | ) | |||||
Other | 154 | 1,161 | 299 | 18 | 339 | |||||||||
Total noninterest income | $ | 26,858 | $ | 47,729 | $ | 26,593 | $ | 32,520 | $ | 25,842 | ||||
Salaries and employee benefits | $ | 31,860 | $ | 41,059 | $ | 32,098 | $ | 31,459 | $ | 32,003 | ||||
Occupancy and equipment expense | 6,514 | 6,789 | 6,228 | 6,100 | 5,914 | |||||||||
Professional and data processing fees | 4,613 | 4,223 | 4,456 | 4,078 | 3,514 | |||||||||
Post-acquisition compensation, transition and integration costs | - | - | - | - | 207 | |||||||||
1,945 | 2,115 | 1,721 | 1,927 | 1,374 | ||||||||||
Loan/lease expense | 378 | 834 | 826 | 652 | 556 | |||||||||
Net cost of (income from) and gains/losses on operations of other real estate | (30 | ) | 38 | 3 | - | (67 | ) | |||||||
Advertising and marketing | 1,483 | 1,641 | 1,429 | 1,735 | 1,237 | |||||||||
Communication and data connectivity | 401 | 449 | 478 | 471 | 665 | |||||||||
Supplies | 275 | 333 | 335 | 281 | 305 | |||||||||
Bank service charges | 568 | 761 | 605 | 621 | 605 | |||||||||
Correspondent banking expense | 305 | 300 | 232 | 221 | 210 | |||||||||
Intangibles amortization | 690 | 716 | 691 | 765 | 766 | |||||||||
Payment card processing | 646 | 836 | 733 | 542 | 545 | |||||||||
Trust expense | 425 | 413 | 432 | 337 | 214 | |||||||||
Other | 617 | 431 | 814 | 538 | 737 | |||||||||
Total noninterest expense | $ | 50,690 | $ | 60,938 | $ | 51,081 | $ | 49,727 | $ | 48,785 | ||||
Net income before income taxes | $ | 27,898 | $ | 37,328 | $ | 26,961 | $ | 32,392 | $ | 29,939 | ||||
Federal and state income tax expense | 1,172 | 4,473 | 1,840 | 3,967 | 2,782 | |||||||||
Net income | $ | 26,726 | $ | 32,855 | $ | 25,121 | $ | 28,425 | $ | 27,157 | ||||
Basic EPS | $ | 1.59 | $ | 1.96 | $ | 1.50 | $ | 1.70 | $ | 1.62 | ||||
Diluted EPS | $ | 1.58 | $ | 1.95 | $ | 1.49 | $ | 1.69 | $ | 1.60 | ||||
Weighted average common shares outstanding | 16,783,348 | 16,734,080 | 16,717,303 | 16,701,950 | 16,776,289 | |||||||||
Weighted average common and common equivalent shares outstanding | 16,910,675 | 16,875,952 | 16,847,951 | 16,799,527 | 16,942,132 | |||||||||
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
As of and for the Quarter Ended | |||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
COMMON SHARE DATA | |||||||||||||||
Common shares outstanding | 16,807,056 | 16,749,254 | 16,731,646 | 16,713,853 | 16,713,775 | ||||||||||
Book value per common share (1) | $ | 53.99 | $ | 52.93 | $ | 49.51 | $ | 49.22 | $ | 47.95 | |||||
Tangible book value per common share (Non-GAAP) (2) | $ | 44.93 | $ | 43.81 | $ | 40.33 | $ | 39.99 | $ | 38.71 | |||||
Closing stock price | $ | 60.74 | $ | 58.39 | $ | 48.52 | $ | 41.03 | $ | 43.91 | |||||
Market capitalization | $ | 1,020,861 | $ | 977,989 | $ | 811,819 | $ | 685,769 | $ | 733,902 | |||||
Market price / book value | 112.51 | % | 100.31 | % | 98.00 | % | 83.36 | % | 91.57 | % | |||||
Market price / tangible book value | 135.18 | % | 133.29 | % | 120.30 | % | 102.59 | % | 113.43 | % | |||||
Earnings per common share (basic) LTM (3) | $ | 6.75 | $ | 6.78 | $ | 6.65 | $ | 6.89 | $ | 6.06 | |||||
Price earnings ratio LTM (3) | 9.00 x | 8.61 x | 7.30 x | 5.96 x | 7.24 x | ||||||||||
TCE / TA (Non-GAAP) (4) | 8.94 | % | 8.75 | % | 8.05 | % | 8.28 | % | 8.21 | % | |||||
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||
Beginning balance | $ | 886,596 | $ | 828,383 | $ | 822,689 | $ | 801,494 | $ | 772,724 | |||||
Net income | 26,726 | 32,855 | 25,121 | 28,425 | 27,157 | ||||||||||
Other comprehensive income (loss), net of tax | (5,373 | ) | 25,363 | (19,415 | ) | (6,336 | ) | 9,325 | |||||||
Common stock cash dividends declared | (1,008 | ) | (1,004 | ) | (1,003 | ) | (1,003 | ) | (1,010 | ) | |||||
Repurchase and cancellation of shares of common stock as a result of a share repurchase program | - | - | - | (967 | ) | (7,719 | ) | ||||||||
Other (5) | 401 | 999 | 991 | 1,076 | 1,017 | ||||||||||
Ending balance | $ | 907,342 | $ | 886,596 | $ | 828,383 | $ | 822,689 | $ | 801,494 | |||||
REGULATORY CAPITAL RATIOS (6): | |||||||||||||||
Total risk-based capital ratio | 14.30 | % | 14.29 | % | 14.48 | % | 14.64 | % | 14.64 | % | |||||
Tier 1 risk-based capital ratio | 10.50 | % | 10.27 | % | 10.30 | % | 10.34 | % | 10.23 | % | |||||
Tier 1 leverage capital ratio | 10.33 | % | 10.03 | % | 9.92 | % | 10.06 | % | 9.73 | % | |||||
Common equity tier 1 ratio | 9.91 | % | 9.67 | % | 9.68 | % | 9.70 | % | 9.57 | % | |||||
KEY PERFORMANCE RATIOS AND OTHER METRICS | |||||||||||||||
Return on average assets (annualized) | 1.25 | % | 1.53 | % | 1.21 | % | 1.44 | % | 1.37 | % | |||||
Return on average total equity (annualized) | 11.83 | % | 15.35 | % | 11.95 | % | 13.97 | % | 13.67 | % | |||||
Net interest margin | 2.82 | % | 2.90 | % | 2.89 | % | 2.93 | % | 3.18 | % | |||||
Net interest margin (TEY) (Non-GAAP)(7) | 3.25 | % | 3.32 | % | 3.31 | % | 3.29 | % | 3.52 | % | |||||
Efficiency ratio (Non-GAAP) (8) | 62.15 | % | 58.90 | % | 62.41 | % | 58.01 | % | 59.02 | % | |||||
Gross loans/leases held for investment / total assets | 74.11 | % | 76.60 | % | 74.09 | % | 73.96 | % | 75.27 | % | |||||
Gross loans/leases held for investment / total deposits | 93.63 | % | 100.41 | % | 97.42 | % | 92.09 | % | 93.04 | % | |||||
Effective tax rate | 4.20 | % | 11.98 | % | 6.82 | % | 12.25 | % | 9.29 | % | |||||
Full-time equivalent employees (9) | 986 | 996 | 987 | 1009 | 969 | ||||||||||
AVERAGE BALANCES | |||||||||||||||
Assets | $ | 8,550,855 | $ | 8,535,732 | $ | 8,287,813 | $ | 7,924,597 | $ | 7,906,830 | |||||
Loans/leases | 6,598,614 | 6,483,572 | 6,476,512 | 6,219,980 | 6,165,115 | ||||||||||
Deposits | 6,595,453 | 6,485,154 | 6,342,339 | 6,292,481 | 6,179,644 | ||||||||||
Total stockholders' equity | 903,371 | 852,163 | 837,734 | 816,882 | 794,685 | ||||||||||
(1) Includes accumulated other comprehensive income (loss). | |||||||||||||||
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations. | |||||||||||||||
(3) LTM : Last twelve months. | |||||||||||||||
(4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations. | |||||||||||||||
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. | |||||||||||||||
(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release. | |||||||||||||||
(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations. | |||||||||||||||
(8) See GAAP to Non-GAAP reconciliations. | |||||||||||||||
(9) The increase in full-time equivalent employees in the second quarter of 2023 and the subsequent decline in the third quarter of 2023 includes 19 summer interns. | |||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
ANALYSIS OF NET INTEREST INCOME AND MARGIN | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | ||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Fed funds sold | $ | 19,955 | $ | 269 | 5.42 | % | $ | 18,644 | $ | 257 | 5.47 | % | $ | 19,275 | $ | 234 | 4.93 | % | ||
Interest-bearing deposits at financial institutions | 91,557 | 1,200 | 5.27 | % | 72,439 | 986 | 5.40 | % | 73,584 | 821 | 4.53 | % | ||||||||
Investment securities - taxable | 373,540 | 4,261 | 4.55 | % | 365,686 | 4,080 | 4.45 | % | 332,640 | 3,366 | 4.05 | % | ||||||||
Investment securities - nontaxable (1) | 685,969 | 9,349 | 5.45 | % | 650,069 | 8,380 | 5.15 | % | 619,225 | 6,791 | 4.39 | % | ||||||||
Restricted investment securities | 38,085 | 674 | 7.00 | % | 40,625 | 670 | 6.45 | % | 37,766 | 513 | 5.43 | % | ||||||||
Loans (1) | 6,598,614 | 107,673 | 6.56 | % | 6,483,572 | 105,830 | 6.48 | % | 6,165,115 | 88,548 | 5.82 | % | ||||||||
Total earning assets (1) | $ | 7,807,720 | $ | 123,426 | 6.35 | % | $ | 7,631,035 | $ | 120,203 | 6.26 | % | $ | 7,247,605 | $ | 100,273 | 5.60 | % | ||
Interest-bearing deposits | $ | 4,529,325 | $ | 39,072 | 3.47 | % | $ | 4,465,279 | $ | 37,082 | 3.29 | % | $ | 4,067,405 | $ | 23,776 | 2.37 | % | ||
Time deposits | 1,107,622 | 12,345 | 4.48 | % | 982,356 | 10,559 | 4.26 | % | 869,912 | 6,003 | 2.80 | % | ||||||||
Short-term borrowings | 1,763 | 23 | 5.16 | % | 1,101 | 15 | 5.18 | % | 7,573 | 99 | 5.28 | % | ||||||||
355,220 | 4,738 | 5.28 | % | 360,000 | 4,841 | 5.26 | % | 296,333 | 3,521 | 4.75 | % | |||||||||
Subordinated debentures | 233,101 | 3,480 | 5.97 | % | 232,994 | 3,308 | 5.68 | % | 232,679 | 3,311 | 5.69 | % | ||||||||
Junior subordinated debentures | 48,742 | 692 | 5.62 | % | 48,710 | 708 | 5.68 | % | 48,613 | 696 | 5.72 | % | ||||||||
Total interest-bearing liabilities | $ | 6,275,773 | $ | 60,350 | 3.86 | % | $ | 6,090,440 | $ | 56,513 | 3.68 | % | $ | 5,522,515 | $ | 37,406 | 2.74 | % | ||
Net interest income (1) | $ | 63,076 | $ | 63,690 | $ | 62,867 | ||||||||||||||
Net interest margin (2) | 2.82 | % | 2.90 | % | 3.18 | % | ||||||||||||||
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) | 3.25 | % | 3.32 | % | 3.52 | % | ||||||||||||||
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) | 3.24 | % | 3.29 | % | 3.47 | % | ||||||||||||||
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate. | ||||||||||||||||||||
(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented. | ||||||||||||||||||||
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations. |
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
As of | |||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES | |||||||||||||||
Beginning balance | $ | 87,200 | $ | 87,669 | $ | 85,797 | $ | 86,573 | $ | 87,706 | |||||
Change in ACL for transfer of loans to LHFS | (3,377 | ) | 266 | 175 | (2,277 | ) | (1,709 | ) | |||||||
Credit loss expense | 3,736 | 2,519 | 3,260 | 3,313 | 2,458 | ||||||||||
Loans/leases charged off | (3,560 | ) | (3,354 | ) | (1,816 | ) | (1,947 | ) | (2,275 | ) | |||||
Recoveries on loans/leases previously charged off | 471 | 100 | 253 | 135 | 393 | ||||||||||
Ending balance | $ | 84,470 | $ | 87,200 | $ | 87,669 | $ | 85,797 | $ | 86,573 | |||||
NONPERFORMING ASSETS | |||||||||||||||
Nonaccrual loans/leases | $ | 29,439 | $ | 32,753 | $ | 34,568 | $ | 26,062 | $ | 22,947 | |||||
Accruing loans/leases past due 90 days or more | 142 | 86 | - | 83 | 15 | ||||||||||
Total nonperforming loans/leases | 29,581 | 32,839 | 34,568 | 26,145 | 22,962 | ||||||||||
Other real estate owned | 784 | 1,347 | 120 | - | 61 | ||||||||||
Other repossessed assets | 962 | - | - | - | - | ||||||||||
Total nonperforming assets | $ | 31,327 | $ | 34,186 | $ | 34,688 | $ | 26,145 | $ | 23,023 | |||||
ASSET QUALITY RATIOS | |||||||||||||||
Nonperforming assets / total assets | 0.36 | % | 0.40 | % | 0.41 | % | 0.32 | % | 0.29 | % | |||||
ACL for loans and leases / total loans/leases held for investment | 1.33 | % | 1.33 | % | 1.39 | % | 1.41 | % | 1.43 | % | |||||
ACL for loans and leases / nonperforming loans/leases | 285.55 | % | 265.54 | % | 253.61 | % | 328.16 | % | 377.03 | % | |||||
Net charge-offs as a % of average loans/leases | 0.05 | % | 0.05 | % | 0.02 | % | 0.03 | % | 0.03 | % | |||||
INTERNALLY ASSIGNED RISK RATING (1) (2) | |||||||||||||||
Special mention | $ | 111,729 | $ | 125,308 | $ | 128,052 | $ | 117,761 | $ | 125,170 | |||||
Substandard/Classified loans (3) | 70,841 | 70,425 | 72,550 | 67,192 | 74,307 | ||||||||||
Doubtful/Classified loans (3) | - | - | - | - | - | ||||||||||
Criticized loans (4) | $ | 182,570 | $ | 194,674 | $ | 200,602 | $ | 184,953 | $ | 199,477 | |||||
Classified loans as a % of total loans/leases | 1.07 | % | 1.08 | % | 1.10 | % | 1.05 | % | 1.20 | % | |||||
Criticized loans as a % of total loans/leases | 2.75 | % | 2.98 | % | 3.04 | % | 2.90 | % | 3.22 | % | |||||
(1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring. | |||||||||||||||
(2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion. | |||||||||||||||
(3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to | |||||||||||||||
(4) Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to | |||||||||||||||
Consolidated Financial Highlights | ||||||||||||
(Unaudited) | ||||||||||||
For the Quarter Ended | ||||||||||||
SELECT FINANCIAL DATA - SUBSIDIARIES | 2024 | 2023 | 2023 | |||||||||
(dollars in thousands) | ||||||||||||
TOTAL ASSETS | ||||||||||||
$ | 2,618,727 | $ | 2,448,957 | $ | 2,548,473 | |||||||
m2 | 350,801 | 345,682 | 317,497 | |||||||||
2,423,936 | 2,419,146 | 2,196,560 | ||||||||||
1,445,230 | 1,426,202 | 1,286,227 | ||||||||||
2,327,985 | 2,281,296 | 2,147,776 | ||||||||||
TOTAL DEPOSITS | ||||||||||||
$ | 2,161,515 | $ | 1,878,375 | $ | 2,173,343 | |||||||
1,757,353 | 1,748,516 | 1,663,138 | ||||||||||
1,187,926 | 1,169,921 | 1,086,531 | ||||||||||
1,743,514 | 1,771,371 | 1,646,730 | ||||||||||
TOTAL LOANS & LEASES | ||||||||||||
$ | 2,046,038 | $ | 1,983,679 | $ | 1,872,029 | |||||||
m2 | 354,815 | 350,641 | 321,495 | |||||||||
1,680,127 | 1,698,447 | 1,637,252 | ||||||||||
1,113,070 | 1,099,262 | 994,454 | ||||||||||
1,809,101 | 1,762,027 | 1,686,287 | ||||||||||
TOTAL LOANS & LEASES / TOTAL DEPOSITS | ||||||||||||
95 | % | 106 | % | 86 | % | |||||||
96 | % | 97 | % | 98 | % | |||||||
94 | % | 94 | % | 92 | % | |||||||
104 | % | 99 | % | 102 | % | |||||||
TOTAL LOANS & LEASES / TOTAL ASSETS | ||||||||||||
78 | % | 81 | % | 73 | % | |||||||
69 | % | 70 | % | 75 | % | |||||||
77 | % | 77 | % | 77 | % | |||||||
78 | % | 77 | % | 79 | % | |||||||
ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES | ||||||||||||
1.40 | % | 1.48 | % | 1.41 | % | |||||||
m2 | 3.75 | % | 3.80 | % | 3.13 | % | ||||||
1.34 | % | 1.39 | % | 1.50 | % | |||||||
1.12 | % | 1.23 | % | 1.38 | % | |||||||
1.15 | % | 1.18 | % | 1.29 | % | |||||||
RETURN ON AVERAGE ASSETS | ||||||||||||
0.79 | % | 0.67 | % | 1.23 | % | |||||||
3.09 | % | 3.78 | % | 3.07 | % | |||||||
1.25 | % | 1.11 | % | 1.49 | % | |||||||
0.88 | % | 1.41 | % | 1.02 | % | |||||||
NET INTEREST MARGIN PERCENTAGE (2) | ||||||||||||
3.31 | % | 3.41 | % | 3.44 | % | |||||||
3.77 | % | 3.84 | % | 4.03 | % | |||||||
3.75 | % | 3.74 | % | 3.99 | % | |||||||
2.98 | % | 3.07 | % | 3.49 | % | |||||||
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET | ||||||||||||
INTEREST MARGIN, NET | ||||||||||||
$ | - | $ | - | $ | (8 | ) | ||||||
(1 | ) | (1 | ) | 71 | ||||||||
396 | 706 | 797 | ||||||||||
(32 | ) | (32 | ) | (32 | ) | |||||||
(1) | ||||||||||||
(2) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% federal tax rate. | ||||||||||||
(3) | ||||||||||||
(4) Relates to the trust preferred securities acquired as part of the | ||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
As of | ||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS | 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | ||||||||||||||||||||
Stockholders' equity (GAAP) | $ | 907,342 | $ | 886,596 | $ | 828,383 | $ | 822,689 | $ | 801,494 | ||||||||||
Less: Intangible assets | 152,158 | 152,848 | 153,564 | 154,255 | 154,467 | |||||||||||||||
Tangible common equity (non-GAAP) | $ | 755,184 | $ | 733,748 | $ | 674,819 | $ | 668,434 | $ | 647,027 | ||||||||||
Total assets (GAAP) | $ | 8,599,549 | $ | 8,538,894 | $ | 8,540,057 | $ | 8,226,673 | $ | 8,036,904 | ||||||||||
Less: Intangible assets | 152,158 | 152,848 | 153,564 | 154,255 | 154,467 | |||||||||||||||
Tangible assets (non-GAAP) | $ | 8,447,391 | $ | 8,386,046 | $ | 8,386,493 | $ | 8,072,418 | $ | 7,882,437 | ||||||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 8.94 | % | 8.75 | % | 8.05 | % | 8.28 | % | 8.21 | % | ||||||||||
(1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the | ||||||||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS | For the Quarter Ended | |||||||||||||||||||
ADJUSTED NET INCOME (1) | 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
Net income (GAAP) | $ | 26,726 | $ | 32,855 | $ | 25,121 | $ | 28,425 | $ | 27,157 | ||||||||||
Less non-core items (post-tax) (2): | ||||||||||||||||||||
Income: | ||||||||||||||||||||
Securities gains (losses), net | - | - | - | 9 | (366 | ) | ||||||||||||||
Fair value gain (loss) on derivatives, net | (129 | ) | (460 | ) | (265 | ) | 66 | (337 | ) | |||||||||||
Total non-core income (non-GAAP) | $ | (129 | ) | $ | (460 | ) | $ | (265 | ) | $ | 75 | $ | (703 | ) | ||||||
Expense: | ||||||||||||||||||||
Post-acquisition compensation, transition and integration costs | - | - | - | - | 164 | |||||||||||||||
Total non-core expense (non-GAAP) | $ | - | $ | - | $ | - | $ | - | $ | 164 | ||||||||||
Adjusted net income (non-GAAP) (1) | $ | 26,855 | $ | 33,315 | $ | 25,386 | $ | 28,350 | $ | 28,024 | ||||||||||
ADJUSTED EARNINGS PER COMMON SHARE (1) | ||||||||||||||||||||
Adjusted net income (non-GAAP) (from above) | $ | 26,855 | $ | 33,315 | $ | 25,386 | $ | 28,350 | $ | 28,024 | ||||||||||
Weighted average common shares outstanding | 16,783,348 | 16,734,080 | 16,717,303 | 16,701,950 | 16,776,289 | |||||||||||||||
Weighted average common and common equivalent shares outstanding | 16,910,675 | 16,875,952 | 16,847,951 | 16,799,527 | 16,942,132 | |||||||||||||||
Adjusted earnings per common share (non-GAAP): | ||||||||||||||||||||
Basic | $ | 1.60 | $ | 1.99 | $ | 1.52 | $ | 1.70 | $ | 1.67 | ||||||||||
Diluted | $ | 1.59 | $ | 1.97 | $ | 1.51 | $ | 1.69 | $ | 1.65 | ||||||||||
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) | ||||||||||||||||||||
Adjusted net income (non-GAAP) (from above) | $ | 26,855 | $ | 33,315 | $ | 25,386 | $ | 28,350 | $ | 28,024 | ||||||||||
Average Assets | $ | 8,550,855 | $ | 8,535,732 | $ | 8,287,813 | $ | 7,924,597 | $ | 7,906,830 | ||||||||||
Adjusted return on average assets (annualized) (non-GAAP) | 1.26 | % | 1.56 | % | 1.23 | % | 1.43 | % | 1.42 | % | ||||||||||
Adjusted return on average equity (annualized) (non-GAAP) | 11.89 | % | 15.64 | % | 12.12 | % | 13.88 | % | 14.11 | % | ||||||||||
NET INTEREST MARGIN (TEY) (3) | ||||||||||||||||||||
Net interest income (GAAP) | $ | 54,699 | $ | 55,736 | $ | 55,255 | $ | 53,205 | $ | 56,810 | ||||||||||
Plus: Tax equivalent adjustment (4) | 8,377 | 7,954 | 7,771 | 6,542 | 6,057 | |||||||||||||||
Net interest income - tax equivalent (Non-GAAP) | $ | 63,076 | $ | 63,690 | $ | 63,026 | $ | 59,747 | $ | 62,867 | ||||||||||
Less: Acquisition accounting net accretion | 363 | 673 | 539 | 134 | 828 | |||||||||||||||
Adjusted net interest income | $ | 62,713 | $ | 63,017 | $ | 62,487 | $ | 59,613 | $ | 62,039 | ||||||||||
Average earning assets | $ | 7,807,720 | $ | 7,631,035 | $ | 7,573,785 | $ | 7,283,286 | $ | 7,247,605 | ||||||||||
Net interest margin (GAAP) | 2.82 | % | 2.90 | % | 2.89 | % | 2.93 | % | 3.18 | % | ||||||||||
Net interest margin (TEY) (Non-GAAP) | 3.25 | % | 3.32 | % | 3.31 | % | 3.29 | % | 3.52 | % | ||||||||||
Adjusted net interest margin (TEY) (Non-GAAP) | 3.24 | % | 3.29 | % | 3.28 | % | 3.28 | % | 3.47 | % | ||||||||||
EFFICIENCY RATIO (5) | ||||||||||||||||||||
Noninterest expense (GAAP) | $ | 50,690 | $ | 60,938 | $ | 51,081 | $ | 49,727 | $ | 48,785 | ||||||||||
Net interest income (GAAP) | $ | 54,699 | $ | 55,736 | $ | 55,255 | $ | 53,205 | $ | 56,810 | ||||||||||
Noninterest income (GAAP) | 26,858 | 47,729 | 26,593 | 32,520 | 25,842 | |||||||||||||||
Total income | $ | 81,557 | $ | 103,465 | $ | 81,848 | $ | 85,725 | $ | 82,652 | ||||||||||
Efficiency ratio (noninterest expense/total income) (Non-GAAP) | 62.15 | % | 58.90 | % | 62.41 | % | 58.01 | % | 59.02 | % | ||||||||||
(1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-In compliance with applicable rules of the | ||||||||||||||||||||
(2) Non-core or nonrecurring items (post-tax) are calculated using an estimated effective federal tax rate of 21%. | ||||||||||||||||||||
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate. | ||||||||||||||||||||
(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the | ||||||||||||||||||||
(5) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the | ||||||||||||||||||||
Source:
2024 GlobeNewswire, Inc., source