- Second quarter net income of
$24.9 million ; - Second quarter earnings per diluted common share of
$0.81 ; - Annualized return on second quarter average assets of 1.29%;
- Annualized return on second quarter average tangible common equity of 18.59%(1);
- Nonperforming assets remain low at 0.04% of total assets; and
- Authorized stock repurchase plan of up to 1.0 million shares.
“Southside reported excellent financial results for the second quarter, highlighted by earnings per share of
Operating Results for the Three Months Ended
Net income was
Net interest income for the three months ended
Our net interest margin and tax-equivalent net interest margin(1) decreased to 2.99% and 3.17%, respectively, for the three months ended
Noninterest income was
Noninterest expense increased
Income tax expense increased
Operating Results for the Six Months Ended
Net income was
Net interest income was
Our net interest margin and tax-equivalent net interest margin(1) were 3.01% and 3.19%, respectively, for the six months ended
Noninterest income was
Noninterest expense was
Income tax expense increased
Balance Sheet Data
At
Loans at
Securities at
Deposits at
At
Balance | Number of Accounts | Average Balance | % of Total Deposits | ||||||||
Individual non-maturity | $ | 2,195,950 | 149,887 | $ | 15 | 35.9 | % | ||||
Commercial non-maturity | 1,746,652 | 21,054 | 83 | 28.6 | % | ||||||
Certificates of deposits | 602,745 | 9,223 | 65 | 9.8 | % | ||||||
Public funds | 802,195 | 701 | 1,144 | 13.1 | % | ||||||
Total deposits, excluding brokered deposits | 5,347,542 | 180,865 | $ | 30 | 87.4 | % | |||||
Brokered deposits | 770,145 | — | — | 12.6 | % | ||||||
Total deposits | $ | 6,117,687 | 100.0 | % | |||||||
At
Balance | Uninsured Balance | % of Uninsured Total Deposits | |||||||||
Affiliate deposits | $ | 21,583 | $ | 21,333 | 0.3 | % | |||||
Customer deposits | 4,523,764 | 1,309,550 | 21.4 | % | |||||||
Brokered deposits | 770,145 | — | — | % | |||||||
Public funds | 802,195 | 775,739 | 12.7 | % | |||||||
Total | $ | 6,117,687 | 2,106,622 | 34.4 | % | ||||||
Excluding public funds (collateralized) | (775,739 | ) | (12.7 | ) | % | ||||||
Excluding affiliate deposits | (21,333 | ) | (0.3 | ) | % | ||||||
Total estimated uninsured deposits | $ | 1,309,550 | 21.4 | % | |||||||
We continued to increase interest rates paid on deposits during the quarter in order to retain deposits. Our noninterest bearing deposits represent 24.0% of total deposits. Linked quarter, our cost of interest bearing deposits increased 21 basis points from 1.82% in the prior quarter to 2.03%. Linked quarter, our cost of total deposits increased 16 basis points from 1.34% in the prior quarter to 1.50%.
Our cost of interest bearing deposits increased 157 basis points, from 0.35% for the six months ended
Capital Resources and Liquidity
Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended
We utilized the Federal Reserve’s Bank Term Funding Program (“BTFP”) to reduce our overall funding costs and to enhance our interest rate risk position. As of
The table below shows our total lines of credit, current borrowings as of
Line of Credit | Borrowings | Total Available for Future Liquidity | Swapped | |||||||||||
FHLB advances | $ | 1,979,115 | $ | 183,007 | $ | 1,796,108 | $ | 180,000 | ||||||
693,551 | 100,000 | 593,551 | — | |||||||||||
Correspondent bank lines of credit | 62,500 | — | 62,500 | — | ||||||||||
Federal Reserve Bank Term Funding Program | 296,866 | 296,158 | 708 | — | ||||||||||
Total liquidity lines | $ | 3,032,032 | $ | 579,165 | $ | 2,452,867 | $ | 180,000 | ||||||
Asset Quality
Nonperforming assets at
The allowance for loan losses totaled
For the three month period ended
We recorded a reversal of provision for credit losses for off-balance-sheet credit exposures of
Dividend
(1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
Conference Call
Southside's management team will host a conference call to discuss its second quarter ended
Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register.vevent.com/register/BI8f91599282bd40e58e2908cc56c04bda to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate register 10 minutes prior to the conference call to ensure a more efficient registration process.
For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in
Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe this measure to be the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.
Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating
These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an
Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About
To learn more about
Forward-Looking Statements
Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, discussions of the effect of our expansion, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company's ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates, tax reform, inflation, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, higher interest rates and general economic and recessionary concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity in a rapidly changing and unpredictable market, supply chain disruptions, labor shortages and additional interest rate increases by the
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended
Consolidated Financial Summary (Unaudited) (Dollars in thousands) | |||||||||||||||||||
As of | |||||||||||||||||||
2023 | 2022 | ||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 114,707 | $ | 101,109 | $ | 106,143 | $ | 110,620 | $ | 111,099 | |||||||||
Interest earning deposits | 14,059 | 151,999 | 9,276 | 3,476 | 12,910 | ||||||||||||||
Federal funds sold | 78,347 | 57,384 | 83,833 | 81,031 | 48,280 | ||||||||||||||
Securities available for sale, at estimated fair value | 1,339,821 | 1,437,222 | 1,299,014 | 1,424,562 | 1,733,354 | ||||||||||||||
Securities held to maturity, at net carrying value | 1,308,472 | 1,308,457 | 1,326,729 | 1,151,205 | 1,083,672 | ||||||||||||||
Total securities | 2,648,293 | 2,745,679 | 2,625,743 | 2,575,767 | 2,817,026 | ||||||||||||||
10,801 | 16,696 | 9,190 | 12,887 | 13,726 | |||||||||||||||
Loans held for sale | 1,666 | 407 | 667 | 421 | 815 | ||||||||||||||
Loans | 4,329,043 | 4,152,644 | 4,147,691 | 4,063,495 | 3,963,041 | ||||||||||||||
Less: Allowance for loan losses | (36,303 | ) | (36,332 | ) | (36,515 | ) | (36,506 | ) | (35,449 | ) | |||||||||
Net loans | 4,292,740 | 4,116,312 | 4,111,176 | 4,026,989 | 3,927,592 | ||||||||||||||
Premises & equipment, net | 139,801 | 141,363 | 141,256 | 142,653 | 142,772 | ||||||||||||||
201,116 | 201,116 | 201,116 | 201,116 | 201,116 | |||||||||||||||
Other intangible assets, net | 3,702 | 4,144 | 4,622 | 5,137 | 5,687 | ||||||||||||||
Bank owned life insurance | 134,951 | 134,635 | 133,911 | 133,394 | 132,675 | ||||||||||||||
Other assets | 167,069 | 121,501 | 131,703 | 160,256 | 192,363 | ||||||||||||||
Total assets | $ | 7,807,252 | $ | 7,792,345 | $ | 7,558,636 | $ | 7,453,747 | $ | 7,606,061 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Noninterest bearing deposits | $ | 1,466,756 | $ | 1,543,413 | $ | 1,671,562 | $ | 1,759,959 | $ | 1,735,488 | |||||||||
Interest bearing deposits | 4,650,931 | 4,294,807 | 4,526,457 | 4,421,200 | 4,512,921 | ||||||||||||||
Total deposits | 6,117,687 | 5,838,220 | 6,198,019 | 6,181,159 | 6,248,409 | ||||||||||||||
Other borrowings and | 683,348 | 958,810 | 374,511 | 318,252 | 212,179 | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 93,796 | 98,710 | 98,674 | 98,639 | 98,604 | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,267 | 60,266 | 60,265 | 60,264 | 60,262 | ||||||||||||||
Other liabilities | 86,993 | 85,309 | 81,170 | 87,797 | 254,825 | ||||||||||||||
Total liabilities | 7,042,091 | 7,041,315 | 6,812,639 | 6,746,111 | 6,874,279 | ||||||||||||||
Shareholders' equity | 765,161 | 751,030 | 745,997 | 707,636 | 731,782 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 7,807,252 | $ | 7,792,345 | $ | 7,558,636 | $ | 7,453,747 | $ | 7,606,061 | |||||||||
Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data) | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||
Income Statement: | ||||||||||||||||||||||||
Total interest income | $ | 86,876 | $ | 80,848 | $ | 75,128 | $ | 66,880 | $ | 57,100 | ||||||||||||||
Total interest expense | 32,960 | 27,495 | 18,286 | 11,365 | 6,022 | |||||||||||||||||||
Net interest income | 53,916 | 53,353 | 56,842 | 55,515 | 51,078 | |||||||||||||||||||
Provision for (reversal of) credit losses | (74 | ) | (40 | ) | 2,086 | 1,494 | (633 | ) | ||||||||||||||||
Net interest income after provision for (reversal of) credit losses | 53,990 | 53,393 | 54,756 | 54,021 | 51,711 | |||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||
Deposit services | 6,291 | 6,422 | 6,478 | 6,241 | 6,496 | |||||||||||||||||||
Net gain (loss) on sale of securities available for sale | (3,455 | ) | (2,146 | ) | — | (99 | ) | (2,177 | ) | |||||||||||||||
Net gain on sale of equity securities | 2,642 | 2,416 | — | — | — | |||||||||||||||||||
Gain on sale of loans | 185 | 104 | 36 | 109 | 208 | |||||||||||||||||||
Trust fees | 1,490 | 1,467 | 1,571 | 1,407 | 1,520 | |||||||||||||||||||
Bank owned life insurance | 756 | 1,675 | 516 | 720 | 720 | |||||||||||||||||||
Brokerage services | 904 | 697 | 727 | 701 | 1,098 | |||||||||||||||||||
Other | 1,651 | 1,398 | 1,438 | 1,190 | 1,232 | |||||||||||||||||||
Total noninterest income | 10,464 | 12,033 | 10,766 | 10,269 | 9,097 | |||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||
Salaries and employee benefits | 21,376 | 21,856 | 20,967 | 21,368 | 20,329 | |||||||||||||||||||
Net occupancy | 3,690 | 3,734 | 3,973 | 3,847 | 3,654 | |||||||||||||||||||
Advertising, travel & entertainment | 854 | 1,050 | 1,188 | 789 | 716 | |||||||||||||||||||
ATM expense | 320 | 355 | 360 | 317 | 356 | |||||||||||||||||||
Professional fees | 1,192 | 1,372 | 1,473 | 1,412 | 1,147 | |||||||||||||||||||
Software and data processing | 2,264 | 2,055 | 1,741 | 1,736 | 1,739 | |||||||||||||||||||
Communications | 348 | 327 | 387 | 497 | 509 | |||||||||||||||||||
1,220 | 544 | 511 | 485 | 477 | ||||||||||||||||||||
Amortization of intangibles | 442 | 478 | 515 | 550 | 586 | |||||||||||||||||||
Other | 3,287 | 3,078 | 2,446 | 2,463 | 2,593 | |||||||||||||||||||
Total noninterest expense | 34,993 | 34,849 | 33,561 | 33,464 | 32,106 | |||||||||||||||||||
Income before income tax expense | 29,461 | 30,577 | 31,961 | 30,826 | 28,702 | |||||||||||||||||||
Income tax expense | 4,568 | 4,543 | 4,293 | 3,875 | 3,297 | |||||||||||||||||||
Net income | $ | 24,893 | $ | 26,034 | $ | 27,668 | $ | 26,951 | $ | 25,405 | ||||||||||||||
Common Share Data: | ||||||||||||||||||||||||
Weighted-average basic shares outstanding | 30,721 | 31,372 | 31,896 | 32,112 | 32,119 | |||||||||||||||||||
Weighted-average diluted shares outstanding | 30,754 | 31,464 | 31,964 | 32,221 | 32,251 | |||||||||||||||||||
Common shares outstanding end of period | 30,532 | 31,121 | 31,547 | 32,127 | 32,108 | |||||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||
Basic | $ | 0.81 | $ | 0.83 | $ | 0.87 | $ | 0.84 | $ | 0.79 | ||||||||||||||
Diluted | 0.81 | 0.83 | 0.87 | 0.84 | 0.79 | |||||||||||||||||||
Book value per common share | 25.06 | 24.13 | 23.65 | 22.03 | 22.79 | |||||||||||||||||||
Tangible book value per common share | 18.35 | 17.54 | 17.13 | 15.61 | 16.35 | |||||||||||||||||||
Cash dividends paid per common share | 0.35 | 0.35 | 0.38 | 0.34 | 0.34 | |||||||||||||||||||
Selected Performance Ratios: | ||||||||||||||||||||||||
Return on average assets | 1.29 | % | 1.38 | % | 1.47 | % | 1.43 | % | 1.42 | % | ||||||||||||||
Return on average shareholders’ equity | 13.32 | 13.92 | 15.08 | 14.23 | 13.33 | |||||||||||||||||||
Return on average tangible common equity (1) | 18.59 | 19.36 | 21.35 | 19.94 | 18.62 | |||||||||||||||||||
Average yield on earning assets (FTE) (1) | 5.00 | 4.76 | 4.43 | 4.00 | 3.66 | |||||||||||||||||||
Average rate on interest bearing liabilities | 2.45 | 2.14 | 1.48 | 0.92 | 0.52 | |||||||||||||||||||
Net interest margin (FTE) (1) | 3.17 | 3.21 | 3.40 | 3.36 | 3.30 | |||||||||||||||||||
Net interest spread (FTE) (1) | 2.55 | 2.62 | 2.95 | 3.08 | 3.14 | |||||||||||||||||||
Average earning assets to average interest bearing liabilities | 134.12 | 137.67 | 143.66 | 142.83 | 144.54 | |||||||||||||||||||
Noninterest expense to average total assets | 1.82 | 1.85 | 1.78 | 1.77 | 1.79 | |||||||||||||||||||
Efficiency ratio (FTE) (1) | 51.06 | 50.99 | 46.38 | 47.42 | 47.74 | |||||||||||||||||||
(1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. | ||||||||||||||||||||||||
Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2023 | 2022 | ||||||||||||||||||
Nonperforming Assets: | $ | 3,059 | $ | 3,180 | $ | 10,862 | $ | 11,717 | $ | 11,815 | |||||||||
Nonaccrual loans | 3,017 | 3,169 | 2,846 | 3,039 | 3,119 | ||||||||||||||
Accruing loans past due more than 90 days | — | — | — | — | — | ||||||||||||||
Restructured loans (1) | — | — | 7,849 | 8,481 | 8,568 | ||||||||||||||
Other real estate owned | — | — | 93 | 162 | 128 | ||||||||||||||
Repossessed assets | 42 | 11 | 74 | 35 | — | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Ratio of nonaccruing loans to: | |||||||||||||||||||
Total loans | 0.07 | % | 0.08 | % | 0.07 | % | 0.07 | % | 0.08 | % | |||||||||
Ratio of nonperforming assets to: | |||||||||||||||||||
Total assets | 0.04 | 0.04 | 0.14 | 0.16 | 0.16 | ||||||||||||||
Total loans | 0.07 | 0.08 | 0.26 | 0.29 | 0.30 | ||||||||||||||
Total loans and OREO | 0.07 | 0.08 | 0.26 | 0.29 | 0.30 | ||||||||||||||
Ratio of allowance for loan losses to: | |||||||||||||||||||
Nonaccruing loans | 1,203.28 | 1,146.48 | 1,283.03 | 1,201.25 | 1,136.55 | ||||||||||||||
Nonperforming assets | 1,186.76 | 1,142.52 | 336.17 | 311.56 | 300.03 | ||||||||||||||
Total loans | 0.84 | 0.87 | 0.88 | 0.90 | 0.89 | ||||||||||||||
Net charge-offs (recoveries) to average loans outstanding | 0.03 | 0.03 | 0.05 | 0.02 | — | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Shareholders’ equity to total assets | 9.80 | 9.64 | 9.87 | 9.49 | 9.62 | ||||||||||||||
Common equity tier 1 capital | 12.32 | 12.73 | 12.63 | 12.98 | 12.83 | ||||||||||||||
Tier 1 risk-based capital | 13.37 | 13.81 | 13.70 | 14.07 | 13.94 | ||||||||||||||
Total risk-based capital | 15.68 | 16.28 | 16.11 | 16.50 | 16.38 | ||||||||||||||
Tier 1 leverage capital | 9.69 | 9.83 | 9.96 | 10.09 | 10.34 | ||||||||||||||
Period end tangible equity to period end tangible assets (2) | 7.37 | 7.19 | 7.35 | 6.92 | 7.10 | ||||||||||||||
Average shareholders’ equity to average total assets | 9.72 | 9.94 | 9.72 | 10.02 | 10.64 | ||||||||||||||
(1) Pursuant to our adoption of ASU 2022-02, effective | |||||||||||||||||||
(2) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. | |||||||||||||||||||
Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2023 | 2022 | ||||||||||||||||||
Loan Portfolio Composition | |||||||||||||||||||
Real Estate Loans: | |||||||||||||||||||
Construction | $ | 657,354 | $ | 591,894 | $ | 559,681 | $ | 554,345 | $ | 520,484 | |||||||||
1-4 Family Residential | 684,878 | 672,595 | 663,519 | 646,692 | 640,706 | ||||||||||||||
Commercial | 2,100,338 | 1,990,861 | 1,987,707 | 1,901,921 | 1,834,734 | ||||||||||||||
Commercial Loans | 383,724 | 388,182 | 412,064 | 433,538 | 428,974 | ||||||||||||||
Municipal Loans | 435,211 | 438,566 | 450,067 | 449,219 | 457,239 | ||||||||||||||
Loans to Individuals | 67,538 | 70,546 | 74,653 | 77,780 | 80,904 | ||||||||||||||
Total Loans | $ | 4,329,043 | $ | 4,152,644 | $ | 4,147,691 | $ | 4,063,495 | $ | 3,963,041 | |||||||||
Summary of Changes in Allowances: | |||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||
Balance at beginning of period | $ | 36,332 | $ | 36,515 | $ | 36,506 | $ | 35,449 | $ | 35,524 | |||||||||
Loans charged-off | (737 | ) | (633 | ) | (864 | ) | (686 | ) | (479 | ) | |||||||||
Recoveries of loans charged-off | 430 | 362 | 383 | 449 | 516 | ||||||||||||||
Net loans (charged-off) recovered | (307 | ) | (271 | ) | (481 | ) | (237 | ) | 37 | ||||||||||
Provision for (reversal of) loan losses | 278 | 88 | 490 | 1,294 | (112 | ) | |||||||||||||
Balance at end of period | $ | 36,303 | $ | 36,332 | $ | 36,515 | $ | 36,506 | $ | 35,449 | |||||||||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||||||||||||||
Balance at beginning of period | $ | 3,559 | $ | 3,687 | $ | 2,091 | $ | 1,891 | $ | 2,412 | |||||||||
Provision for (reversal of) off-balance-sheet credit exposures | (352 | ) | (128 | ) | 1,596 | 200 | (521 | ) | |||||||||||
Balance at end of period | $ | 3,207 | $ | 3,559 | $ | 3,687 | $ | 2,091 | $ | 1,891 | |||||||||
Total Allowance for Credit Losses | $ | 39,510 | $ | 39,891 | $ | 40,202 | $ | 38,597 | $ | 37,340 | |||||||||
Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||||
Six Months Ended | |||||||||
2023 | 2022 | ||||||||
Income Statement: | |||||||||
Total interest income | $ | 167,724 | $ | 110,973 | |||||
Total interest expense | 60,455 | 10,989 | |||||||
Net interest income | 107,269 | 99,984 | |||||||
Provision for (reversal of) credit losses | (114 | ) | (339 | ) | |||||
Net interest income after provision for (reversal of) credit losses | 107,383 | 100,323 | |||||||
Noninterest income | |||||||||
Deposit services | 12,713 | 13,124 | |||||||
Net gain (loss) on sale of securities available for sale | (5,601 | ) | (3,720 | ) | |||||
Net gain on sale of equity securities | 5,058 | — | |||||||
Gain on sale of loans | 289 | 386 | |||||||
Trust fees | 2,957 | 3,014 | |||||||
Bank owned life insurance | 2,431 | 1,411 | |||||||
Brokerage services | 1,601 | 1,907 | |||||||
Other | 3,049 | 3,700 | |||||||
Total noninterest income | 22,497 | 19,822 | |||||||
Noninterest expense | |||||||||
Salaries and employee benefits | 43,232 | 40,298 | |||||||
Net occupancy | 7,424 | 7,310 | |||||||
Advertising, travel & entertainment | 1,904 | 1,453 | |||||||
ATM expense | 675 | 637 | |||||||
Professional fees | 2,564 | 2,074 | |||||||
Software and data processing | 4,319 | 3,370 | |||||||
Communications | 675 | 1,012 | |||||||
1,764 | 949 | ||||||||
Amortization of intangibles | 920 | 1,208 | |||||||
Other | 6,365 | 4,990 | |||||||
Total noninterest expense | 69,842 | 63,301 | |||||||
Income before income tax expense | 60,038 | 56,844 | |||||||
Income tax expense | 9,111 | 6,443 | |||||||
Net income | $ | 50,927 | $ | 50,401 | |||||
Common Share Data: | |||||||||
Weighted-average basic shares outstanding | 31,045 | 32,237 | |||||||
Weighted-average diluted shares outstanding | 31,099 | 32,394 | |||||||
Common shares outstanding end of period | 30,532 | 32,108 | |||||||
Earnings per common share | |||||||||
Basic | $ | 1.64 | $ | 1.56 | |||||
Diluted | 1.64 | 1.56 | |||||||
Book value per common share | 25.06 | 22.79 | |||||||
Tangible book value per common share | 18.35 | 16.35 | |||||||
Cash dividends paid per common share | 0.70 | 0.68 | |||||||
Selected Performance Ratios: | |||||||||
Return on average assets | 1.34 | % | 1.41 | % | |||||
Return on average shareholders’ equity | 13.62 | 12.31 | |||||||
Return on average tangible common equity (1) | 18.98 | 16.75 | |||||||
Average yield on earning assets (FTE) (1) | 4.88 | 3.60 | |||||||
Average rate on interest bearing liabilities | 2.30 | 0.48 | |||||||
Net interest margin (FTE) (1) | 3.19 | 3.26 | |||||||
Net interest spread (FTE) (1) | 2.58 | 3.12 | |||||||
Average earning assets to average interest bearing liabilities | 135.85 | 143.24 | |||||||
Noninterest expense to average total assets | 1.84 | 1.77 | |||||||
Efficiency ratio (FTE) (1) | 51.02 | 47.94 | |||||||
(1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. | |||||||||
Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||
Six Months Ended | |||||||
2023 | 2022 | ||||||
Nonperforming Assets: | $ | 3,059 | $ | 11,815 | |||
Nonaccrual loans | 3,017 | 3,119 | |||||
Accruing loans past due more than 90 days | — | — | |||||
Restructured loans (1) | — | 8,568 | |||||
Other real estate owned | — | 128 | |||||
Repossessed assets | 42 | — | |||||
Asset Quality Ratios: | |||||||
Ratio of nonaccruing loans to: | |||||||
Total loans | 0.07 | % | 0.08 | % | |||
Ratio of nonperforming assets to: | |||||||
Total assets | 0.04 | 0.16 | |||||
Total loans | 0.07 | 0.30 | |||||
Total loans and OREO | 0.07 | 0.30 | |||||
Ratio of allowance for loan losses to: | |||||||
Nonaccruing loans | 1,203.28 | 1,136.55 | |||||
Nonperforming assets | 1,186.76 | 300.03 | |||||
Total loans | 0.84 | 0.89 | |||||
Net charge-offs (recoveries) to average loans outstanding | 0.03 | — | |||||
Capital Ratios: | |||||||
Shareholders’ equity to total assets | 9.80 | 9.62 | |||||
Common equity tier 1 capital | 12.32 | 12.83 | |||||
Tier 1 risk-based capital | 13.37 | 13.94 | |||||
Total risk-based capital | 15.68 | 16.38 | |||||
Tier 1 leverage capital | 9.69 | 10.34 | |||||
Period end tangible equity to period end tangible assets (2) | 7.37 | 7.10 | |||||
Average shareholders’ equity to average total assets | 9.83 | 11.47 | |||||
(1) Pursuant to our adoption of ASU 2022-02, effective | |||||||
(2) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure. | |||||||
Consolidated Financial Highlights (Unaudited) (Dollars in thousands) | |||||||
Six Months Ended | |||||||
Loan Portfolio Composition | 2023 | 2022 | |||||
Real Estate Loans: | |||||||
Construction | $ | 657,354 | $ | 520,484 | |||
1-4 Family Residential | 684,878 | 640,706 | |||||
Commercial | 2,100,338 | 1,834,734 | |||||
Commercial Loans | 383,724 | 428,974 | |||||
Municipal Loans | 435,211 | 457,239 | |||||
Loans to Individuals | 67,538 | 80,904 | |||||
Total Loans | $ | 4,329,043 | $ | 3,963,041 | |||
Summary of Changes in Allowances: | |||||||
Allowance for Loan Losses | |||||||
Balance at beginning of period | $ | 36,515 | $ | 35,273 | |||
Loans charged-off | (1,370 | ) | (1,034 | ) | |||
Recoveries of loans charged-off | 792 | 1,056 | |||||
Net loans (charged-off) recovered | (578 | ) | 22 | ||||
Provision for (reversal of) loan losses | 366 | 154 | |||||
Balance at end of period | $ | 36,303 | $ | 35,449 | |||
Allowance for Off-Balance-Sheet Credit Exposures | |||||||
Balance at beginning of period | $ | 3,687 | $ | 2,384 | |||
Provision for (reversal of) off-balance-sheet credit exposures | (480 | ) | (493 | ) | |||
Balance at end of period | $ | 3,207 | $ | 1,891 | |||
Total Allowance for Credit Losses | $ | 39,510 | $ | 37,340 | |||
The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.
Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,197,130 | $ | 59,334 | 5.67 | % | $ | 4,128,775 | $ | 55,453 | 5.45 | % | |||||||
Loans held for sale | 1,664 | 23 | 5.54 | % | 1,662 | 20 | 4.88 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 925,445 | 8,773 | 3.80 | % | 690,864 | 5,712 | 3.35 | % | |||||||||||
Tax-exempt investment securities (2) | 1,562,232 | 16,182 | 4.15 | % | 1,692,700 | 16,466 | 3.95 | % | |||||||||||
Mortgage-backed and related securities (2) | 401,427 | 3,830 | 3.83 | % | 455,811 | 4,329 | 3.85 | % | |||||||||||
Total securities | 2,889,104 | 28,785 | 4.00 | % | 2,839,375 | 26,507 | 3.79 | % | |||||||||||
21,480 | 379 | 7.08 | % | 31,470 | 245 | 3.16 | % | ||||||||||||
Interest earning deposits | 56,604 | 742 | 5.26 | % | 87,924 | 1,033 | 4.76 | % | |||||||||||
Federal funds sold | 59,186 | 748 | 5.07 | % | 72,630 | 837 | 4.67 | % | |||||||||||
Total earning assets | 7,225,168 | 90,011 | 5.00 | % | 7,161,836 | 84,095 | 4.76 | % | |||||||||||
Cash and due from banks | 103,559 | 107,765 | |||||||||||||||||
Accrued interest and other assets | 419,420 | 398,709 | |||||||||||||||||
Less: Allowance for loan losses | (36,512 | ) | (36,690 | ) | |||||||||||||||
Total assets | $ | 7,711,635 | $ | 7,631,620 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 648,560 | 1,430 | 0.88 | % | $ | 665,919 | 1,313 | 0.80 | % | |||||||||
Certificates of deposit | 797,992 | 6,365 | 3.20 | % | 787,887 | 5,407 | 2.78 | % | |||||||||||
Interest bearing demand accounts | 2,841,818 | 13,884 | 1.96 | % | 2,983,218 | 13,186 | 1.79 | % | |||||||||||
Total interest bearing deposits | 4,288,370 | 21,679 | 2.03 | % | 4,437,024 | 19,906 | 1.82 | % | |||||||||||
211,309 | 1,032 | 1.96 | % | 404,199 | 3,141 | 3.15 | % | ||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 97,804 | 994 | 4.08 | % | 98,693 | 999 | 4.11 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,266 | 1,100 | 7.32 | % | 60,265 | 1,031 | 6.94 | % | |||||||||||
Repurchase agreements | 97,915 | 883 | 3.62 | % | 65,435 | 492 | 3.05 | % | |||||||||||
Other borrowings | 631,447 | 7,272 | 4.62 | % | 136,700 | 1,926 | 5.71 | % | |||||||||||
Total interest bearing liabilities | 5,387,111 | 32,960 | 2.45 | % | 5,202,316 | 27,495 | 2.14 | % | |||||||||||
Noninterest bearing deposits | 1,490,445 | 1,588,725 | |||||||||||||||||
Accrued expenses and other liabilities | 84,252 | 81,829 | |||||||||||||||||
Total liabilities | 6,961,808 | 6,872,870 | |||||||||||||||||
Shareholders’ equity | 749,827 | 758,750 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,711,635 | $ | 7,631,620 | |||||||||||||||
Net interest income (FTE) | $ | 57,051 | $ | 56,600 | |||||||||||||||
Net interest margin (FTE) | 3.17 | % | 3.21 | % | |||||||||||||||
Net interest spread (FTE) | 2.55 | % | 2.62 | % | |||||||||||||||
(1) Interest on loans includes net fees on loans that are not material in amount. | |||||||||||||||||||
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. | |||||||||||||||||||
Note: As of
Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,103,429 | $ | 52,650 | 5.09 | % | $ | 4,012,547 | $ | 45,992 | 4.55 | % | |||||||
Loans held for sale | 1,087 | 15 | 5.47 | % | 606 | 7 | 4.58 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 622,004 | 4,804 | 3.06 | % | 626,136 | 4,896 | 3.10 | % | |||||||||||
Tax-exempt investment securities (2) | 1,730,233 | 15,652 | 3.59 | % | 1,750,952 | 14,455 | 3.28 | % | |||||||||||
Mortgage-backed and related securities (2) | 483,914 | 4,614 | 3.78 | % | 520,501 | 4,770 | 3.64 | % | |||||||||||
Total securities | 2,836,151 | 25,070 | 3.51 | % | 2,897,589 | 24,121 | 3.30 | % | |||||||||||
22,616 | 212 | 3.72 | % | 24,013 | 101 | 1.67 | % | ||||||||||||
Interest earning deposits | 10,974 | 108 | 3.90 | % | 18,664 | 105 | 2.23 | % | |||||||||||
Federal funds sold | 84,858 | 774 | 3.62 | % | 46,106 | 269 | 2.31 | % | |||||||||||
Total earning assets | 7,059,115 | 78,829 | 4.43 | % | 6,999,525 | 70,595 | 4.00 | % | |||||||||||
Cash and due from banks | 108,200 | 102,840 | |||||||||||||||||
Accrued interest and other assets | 356,248 | 433,532 | |||||||||||||||||
Less: Allowance for loan losses | (36,602 | ) | (35,706 | ) | |||||||||||||||
Total assets | $ | 7,486,961 | $ | 7,500,191 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 676,654 | 758 | 0.44 | % | $ | 685,947 | 481 | 0.28 | % | |||||||||
Certificates of deposit | 645,972 | 3,035 | 1.86 | % | 588,212 | 1,452 | 0.98 | % | |||||||||||
Interest bearing demand accounts | 3,119,682 | 9,894 | 1.26 | % | 3,164,961 | 5,954 | 0.75 | % | |||||||||||
Total interest bearing deposits | 4,442,308 | 13,687 | 1.22 | % | 4,439,120 | 7,887 | 0.70 | % | |||||||||||
189,939 | 1,623 | 3.39 | % | 173,838 | 1,078 | 2.46 | % | ||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,657 | 1,013 | 4.07 | % | 98,621 | 1,004 | 4.04 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,264 | 901 | 5.93 | % | 60,263 | 669 | 4.40 | % | |||||||||||
Repurchase agreements | 37,416 | 117 | 1.24 | % | 30,530 | 54 | 0.70 | % | |||||||||||
Other borrowings | 85,033 | 945 | 4.41 | % | 98,174 | 673 | 2.72 | % | |||||||||||
Total interest bearing liabilities | 4,913,617 | 18,286 | 1.48 | % | 4,900,546 | 11,365 | 0.92 | % | |||||||||||
Noninterest bearing deposits | 1,757,568 | 1,746,245 | |||||||||||||||||
Accrued expenses and other liabilities | 88,024 | 101,881 | |||||||||||||||||
Total liabilities | 6,759,209 | 6,748,672 | |||||||||||||||||
Shareholders’ equity | 727,752 | 751,519 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,486,961 | $ | 7,500,191 | |||||||||||||||
Net interest income (FTE) | $ | 60,543 | $ | 59,230 | |||||||||||||||
Net interest margin (FTE) | 3.40 | % | 3.36 | % | |||||||||||||||
Net interest spread (FTE) | 2.95 | % | 3.08 | % | |||||||||||||||
(1) Interest on loans includes net fees on loans that are not material in amount. | |||||||||||||||||||
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. | |||||||||||||||||||
Note: As of
Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||
Three Months Ended | |||||||||
Average Balance | Interest | Average Yield/Rate | |||||||
ASSETS | |||||||||
Loans (1) | $ | 3,847,614 | $ | 39,088 | 4.07 | % | |||
Loans held for sale | 1,776 | 18 | 4.07 | % | |||||
Securities: | |||||||||
Taxable investment securities (2) | 617,603 | 4,632 | 3.01 | % | |||||
Tax-exempt investment securities (2) | 1,653,871 | 13,599 | 3.30 | % | |||||
Mortgage-backed and related securities (2) | 417,057 | 3,238 | 3.11 | % | |||||
Total securities | 2,688,531 | 21,469 | 3.20 | % | |||||
17,663 | 77 | 1.75 | % | ||||||
Interest earning deposits | 77,894 | 125 | 0.64 | % | |||||
Federal funds sold | 37,343 | 79 | 0.85 | % | |||||
Total earning assets | 6,670,821 | 60,856 | 3.66 | % | |||||
Cash and due from banks | 100,231 | ||||||||
Accrued interest and other assets | 446,136 | ||||||||
Less: Allowance for loan losses | (35,895 | ) | |||||||
Total assets | $ | 7,181,293 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Savings accounts | $ | 670,187 | 326 | 0.20 | % | ||||
Certificates of deposit | 518,104 | 578 | 0.45 | % | |||||
Interest bearing demand accounts | 3,175,385 | 3,360 | 0.42 | % | |||||
Total interest bearing deposits | 4,363,676 | 4,264 | 0.39 | % | |||||
55,990 | 224 | 1.60 | % | ||||||
Subordinated notes, net of unamortized debt issuance costs | 98,586 | 1,000 | 4.07 | % | |||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,262 | 471 | 3.13 | % | |||||
Repurchase agreements | 30,055 | 18 | 0.24 | % | |||||
Other borrowings | 6,549 | 45 | 2.76 | % | |||||
Total interest bearing liabilities | 4,615,118 | 6,022 | 0.52 | % | |||||
Noninterest bearing deposits | 1,702,985 | ||||||||
Accrued expenses and other liabilities | 98,870 | ||||||||
Total liabilities | 6,416,973 | ||||||||
Shareholders’ equity | 764,320 | ||||||||
Total liabilities and shareholders’ equity | $ | 7,181,293 | |||||||
Net interest income (FTE) | $ | 54,834 | |||||||
Net interest margin (FTE) | 3.30 | % | |||||||
Net interest spread (FTE) | 3.14 | % | |||||||
(1) Interest on loans includes net fees on loans that are not material in amount. | |||||||||
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. | |||||||||
Note: As of
Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands) | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Loans (1) | $ | 4,163,141 | $ | 114,787 | 5.56 | % | $ | 3,776,194 | $ | 74,713 | 3.99 | % | |||||||
Loans held for sale | 1,663 | 43 | 5.21 | % | 1,354 | 26 | 3.87 | % | |||||||||||
Securities: | |||||||||||||||||||
Taxable investment securities (2) | 808,803 | 14,485 | 3.61 | % | 631,079 | 9,240 | 2.95 | % | |||||||||||
Tax-exempt investment securities (2) | 1,627,105 | 32,648 | 4.05 | % | 1,608,779 | 26,282 | 3.29 | % | |||||||||||
Mortgage-backed and related securities (2) | 428,469 | 8,159 | 3.84 | % | 491,585 | 7,255 | 2.98 | % | |||||||||||
Total securities | 2,864,377 | 55,292 | 3.89 | % | 2,731,443 | 42,777 | 3.16 | % | |||||||||||
FHLB stock, at cost, and equity investments | 26,448 | 624 | 4.76 | % | 19,161 | 190 | 2.00 | % | |||||||||||
Interest earning deposits | 72,177 | 1,775 | 4.96 | % | 61,360 | 149 | 0.49 | % | |||||||||||
Federal funds sold | 65,871 | 1,585 | 4.85 | % | 23,077 | 83 | 0.73 | % | |||||||||||
Total earning assets | 7,193,677 | 174,106 | 4.88 | % | 6,612,589 | 117,938 | 3.60 | % | |||||||||||
Cash and due from banks | 105,650 | 103,669 | |||||||||||||||||
Accrued interest and other assets | 408,908 | 522,167 | |||||||||||||||||
Less: Allowance for loan losses | (36,601 | ) | (35,766 | ) | |||||||||||||||
Total assets | $ | 7,671,634 | $ | 7,202,659 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Savings accounts | $ | 657,192 | 2,743 | 0.84 | % | $ | 661,339 | 599 | 0.18 | % | |||||||||
CDs | 792,967 | 11,772 | 2.99 | % | 540,726 | 1,172 | 0.44 | % | |||||||||||
Interest bearing demand accounts | 2,912,127 | 27,070 | 1.87 | % | 3,136,890 | 5,730 | 0.37 | % | |||||||||||
Total interest bearing deposits | 4,362,286 | 41,585 | 1.92 | % | 4,338,955 | 7,501 | 0.35 | % | |||||||||||
FHLB borrowings | 307,221 | 4,173 | 2.74 | % | 89,202 | 590 | 1.33 | % | |||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,246 | 1,993 | 4.09 | % | 98,569 | 1,998 | 4.09 | % | |||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,266 | 2,131 | 7.13 | % | 60,261 | 827 | 2.77 | % | |||||||||||
Repurchase agreements | 81,765 | 1,375 | 3.39 | % | 25,798 | 28 | 0.22 | % | |||||||||||
Other borrowings | 385,440 | 9,198 | 4.81 | % | 3,525 | 45 | 2.57 | % | |||||||||||
Total interest bearing liabilities | 5,295,224 | 60,455 | 2.30 | % | 4,616,310 | 10,989 | 0.48 | % | |||||||||||
Noninterest bearing deposits | 1,539,313 | 1,673,145 | |||||||||||||||||
Accrued expenses and other liabilities | 82,833 | 87,408 | |||||||||||||||||
Total liabilities | 6,917,370 | 6,376,863 | |||||||||||||||||
Shareholders’ equity | 754,264 | 825,796 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,671,634 | $ | 7,202,659 | |||||||||||||||
Net interest income (FTE) | $ | 113,651 | $ | 106,949 | |||||||||||||||
Net interest margin (FTE) | 3.19 | % | 3.26 | % | |||||||||||||||
Net interest spread (FTE) | 2.58 | % | 3.12 | % | |||||||||||||||
(1) Interest on loans includes net fees on loans that are not material in amount. | |||||||||||||||||||
(2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. | |||||||||||||||||||
Note: As of
The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.
Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Reconciliation of return on average common equity to return on average tangible common equity: | |||||||||||||||||||||||||||||||||||
Net income | $ | 24,893 | $ | 26,034 | $ | 27,668 | $ | 26,951 | $ | 25,405 | $ | 50,927 | $ | 50,401 | |||||||||||||||||||||
After-tax amortization expense | 349 | 378 | 407 | 435 | 463 | 727 | 954 | ||||||||||||||||||||||||||||
Adjusted net income available to common shareholders | $ | 25,242 | $ | 26,412 | $ | 28,075 | $ | 27,386 | $ | 25,868 | $ | 51,654 | $ | 51,355 | |||||||||||||||||||||
Average shareholders' equity | $ | 749,827 | $ | 758,750 | $ | 727,752 | $ | 751,519 | $ | 764,320 | $ | 754,264 | $ | 825,796 | |||||||||||||||||||||
Less: Average intangibles for the period | (205,086 | ) | (205,555 | ) | (206,049 | ) | (206,591 | ) | (207,163 | ) | (205,319 | ) | (207,467 | ) | |||||||||||||||||||||
Average tangible shareholders' equity | $ | 544,741 | $ | 553,195 | $ | 521,703 | $ | 544,928 | $ | 557,157 | $ | 548,945 | $ | 618,329 | |||||||||||||||||||||
Return on average tangible common equity | 18.59 | % | 19.36 | % | 21.35 | % | 19.94 | % | 18.62 | % | 18.98 | % | 16.75 | % | |||||||||||||||||||||
Reconciliation of book value per share to tangible book value per share: | |||||||||||||||||||||||||||||||||||
Common equity at end of period | $ | 765,161 | $ | 751,030 | $ | 745,997 | $ | 707,636 | $ | 731,782 | $ | 765,161 | $ | 731,782 | |||||||||||||||||||||
Less: Intangible assets at end of period | (204,818 | ) | (205,260 | ) | (205,738 | ) | (206,253 | ) | (206,803 | ) | (204,818 | ) | (206,803 | ) | |||||||||||||||||||||
Tangible common shareholders' equity at end of period | $ | 560,343 | $ | 545,770 | $ | 540,259 | $ | 501,383 | $ | 524,979 | $ | 560,343 | $ | 524,979 | |||||||||||||||||||||
Total assets at end of period | $ | 7,807,252 | $ | 7,792,345 | $ | 7,558,636 | $ | 7,453,747 | $ | 7,606,061 | $ | 7,807,252 | $ | 7,606,061 | |||||||||||||||||||||
Less: Intangible assets at end of period | (204,818 | ) | (205,260 | ) | (205,738 | ) | (206,253 | ) | (206,803 | ) | (204,818 | ) | (206,803 | ) | |||||||||||||||||||||
Tangible assets at end of period | $ | 7,602,434 | $ | 7,587,085 | $ | 7,352,898 | $ | 7,247,494 | $ | 7,399,258 | $ | 7,602,434 | $ | 7,399,258 | |||||||||||||||||||||
Period end tangible equity to period end tangible assets | 7.37 | % | 7.19 | % | 7.35 | % | 6.92 | % | 7.10 | % | 7.37 | % | 7.10 | % | |||||||||||||||||||||
Common shares outstanding end of period | 30,532 | 31,121 | 31,547 | 32,127 | 32,108 | 30,532 | 32,108 | ||||||||||||||||||||||||||||
Tangible book value per common share | $ | 18.35 | $ | 17.54 | $ | 17.13 | $ | 15.61 | $ | 16.35 | $ | 18.35 | $ | 16.35 | |||||||||||||||||||||
Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE): | |||||||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 53,916 | $ | 53,353 | $ | 56,842 | $ | 55,515 | $ | 51,078 | $ | 107,269 | $ | 99,984 | |||||||||||||||||||||
Tax-equivalent adjustments: | |||||||||||||||||||||||||||||||||||
Loans | 673 | 697 | 744 | 742 | 762 | 1,370 | 1,507 | ||||||||||||||||||||||||||||
Tax-exempt investment securities | 2,462 | 2,550 | 2,957 | 2,973 | 2,994 | 5,012 | 5,458 | ||||||||||||||||||||||||||||
Net interest income (FTE) (1) | 57,051 | 56,600 | 60,543 | 59,230 | 54,834 | 113,651 | 106,949 | ||||||||||||||||||||||||||||
Noninterest income | 10,464 | 12,033 | 10,766 | 10,269 | 9,097 | 22,497 | 19,822 | ||||||||||||||||||||||||||||
Nonrecurring income (2) | 226 | (1,221 | ) | — | 99 | 2,177 | (995 | ) | 2,883 | ||||||||||||||||||||||||||
Total revenue | $ | 67,741 | $ | 67,412 | $ | 71,309 | $ | 69,598 | $ | 66,108 | $ | 135,153 | $ | 129,654 | |||||||||||||||||||||
Noninterest expense | $ | 34,993 | $ | 34,849 | $ | 33,561 | $ | 33,464 | $ | 32,106 | $ | 69,842 | $ | 63,301 | |||||||||||||||||||||
Pre-tax amortization expense | (442 | ) | (478 | ) | (515 | ) | (550 | ) | (586 | ) | (920 | ) | (1,208 | ) | |||||||||||||||||||||
Nonrecurring expense (3) | 36 | 3 | 26 | 87 | 39 | 39 | 61 | ||||||||||||||||||||||||||||
Adjusted noninterest expense | $ | 34,587 | $ | 34,374 | $ | 33,072 | $ | 33,001 | $ | 31,559 | $ | 68,961 | $ | 62,154 | |||||||||||||||||||||
Efficiency ratio | 53.54 | % | 53.57 | % | 48.92 | % | 50.09 | % | 50.61 | % | 53.55 | % | 50.66 | % | |||||||||||||||||||||
Efficiency ratio (FTE) (1) | 51.06 | % | 50.99 | % | 46.38 | % | 47.42 | % | 47.74 | % | 51.02 | % | 47.94 | % | |||||||||||||||||||||
Average earning assets | $ | 7,225,168 | $ | 7,161,836 | $ | 7,059,115 | $ | 6,999,525 | $ | 6,670,821 | $ | 7,193,677 | $ | 6,612,589 | |||||||||||||||||||||
Net interest margin | 2.99 | % | 3.02 | % | 3.19 | % | 3.15 | % | 3.07 | % | 3.01 | % | 3.05 | % | |||||||||||||||||||||
Net interest margin (FTE) (1) | 3.17 | % | 3.21 | % | 3.40 | % | 3.36 | % | 3.30 | % | 3.19 | % | 3.26 | % | |||||||||||||||||||||
Net interest spread | 2.37 | % | 2.44 | % | 2.74 | % | 2.87 | % | 2.91 | % | 2.40 | % | 2.90 | % | |||||||||||||||||||||
Net interest spread (FTE) (1) | 2.55 | % | 2.62 | % | 2.95 | % | 3.08 | % | 3.14 | % | 2.58 | % | 3.12 | % | |||||||||||||||||||||
(1) These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. | |||||||||||||||||||||||||||||||||||
(2) These adjustments may include net gain or loss on sale of securities available for sale, net gain on sale of equity securities, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable. | |||||||||||||||||||||||||||||||||||
(3) These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable. |
Source:
2023 GlobeNewswire, Inc., source