Independent Bank Group, Inc. Reports Third Quarter Financial Results and Declares Quarterly Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend of
Highlights
- Net interest margin expanded by 3 basis points to 2.50%
- Loan yields expanded by 4 basis points to 6.07%
- Continued healthy credit metrics with nonperforming asset ratio of 0.37% and net charge-off ratio of 0.00%, annualized for the quarter
-
Increased book value by
$1.18 per share to$47.03 and (non-GAAP) tangible book value by$1.27 per share to$34.54 - Total capital ratio grew by 151 basis points to 13.26%, and (non-GAAP) tangible common equity (TCE) ratio grew by 20 basis points to 7.92%
“During the third quarter, we were pleased to see our net interest margin continue its expansion upward, slightly offset by the excess liquidity held during the quarter, as our loans continue to reprice. We also saw substantial enhancement of balance sheet strength in the third quarter as we replaced maturing subordinated debt which had lost capital treatment, resulting in a material increase to total regulatory capital. Also of note, we made the strategic decision to exit the mortgage warehouse line of business during the quarter, which should result in further increases to capital and liquidity once it has fully wound down,” said
Third Quarter 2024 Balance Sheet Highlights
Loans
-
Total loans held for investment, excluding mortgage warehouse purchase loans, were
$13.9 billion atSeptember 30, 2024 compared to$14.0 billion atJune 30, 2024 and$13.8 billion atSeptember 30, 2023 . Loans held for investment, excluding mortgage warehouse purchase loans, decreased$91.5 million , or 2.6% on an annualized basis, during third quarter 2024. -
Average mortgage warehouse purchase loans were
$517.3 million for the quarter endedSeptember 30, 2024 compared to$538.5 million for the quarter endedJune 30, 2024 , and$425.9 million for the quarter endedSeptember 30, 2023 , a decrease of$21.2 million , or 3.9% from the linked quarter and an increase of$91.4 million , or 21.5% year over year. - During the quarter, the Company notified its mortgage warehouse customers that it intends to cease funding new mortgage warehouse purchase loans during the fourth quarter and exit the mortgage warehouse line of business.
Asset Quality
-
Nonperforming assets totaled
$68.1 million , or 0.37% of total assets atSeptember 30, 2024 , compared to$64.9 million or 0.35% of total assets atJune 30, 2024 , and$61.0 million , or 0.33% of total assets atSeptember 30, 2023 . -
Nonperforming loans totaled
$59.3 million , or 0.43% of total loans held for investment atSeptember 30, 2024 , compared to$56.1 million , or 0.40% atJune 30, 2024 and$38.4 million , or 0.28% atSeptember 30, 2023 . -
The increases in nonperforming loans and nonperforming assets for the linked quarter was primarily due to a
$2.9 million commercial real estate loan added to nonaccrual and a$2.9 million commercial real estate loan that was past due 90 days and still accruing offset by net paydowns for the quarter. -
The increases in nonperforming loans and assets from the prior year reflects the nonperforming loan changes discussed above, as well as a commercial real estate loan totaling
$13.0 million added to nonaccrual in fourth quarter 2023 and two commercial relationships totaling$3.4 million added to nonaccrual in the first half of 2024, offset by net paydowns in the year over year period. In addition, the prior year change in nonperforming assets also reflects reductions of$13.8 million in other real estate owned during the year over year period. - Net charge-offs were 0.00% annualized in the third quarter 2024 compared to 0.10% annualized in the linked quarter and 0.01% annualized in the prior year quarter.
Deposits, Borrowings and Liquidity
-
Total deposits were
$16.0 billion atSeptember 30, 2024 compared to$15.8 billion atJune 30, 2024 and$15.3 billion atSeptember 30, 2023 . -
Total borrowings (other than junior subordinated debentures) were
$454.8 million atSeptember 30, 2024 , an increase of$27.6 million fromJune 30, 2024 and a decrease of$91.9 million fromSeptember 30, 2023 . The linked quarter change reflects a$33.8 million payoff of the Company's unsecured line of credit and the redemption of$110.0 million in subordinated debentures offset by the issuance of$175.0 million in new subordinated debentures (net of$3.8 million in issuance costs). The year over year change reflects the aforementioned changes in addition to a$155.0 million BTFP advance taken in first quarter 2024 offset by a reduction of$275.0 million in short-term FHLB advances for the year over year period.
Capital
-
The Company continues to be well capitalized under regulatory guidelines. At
September 30, 2024 , the estimated common equity Tier 1 to risk-weighted assets, Tier 1 capital to average assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted asset ratios were 10.01%, 9.08%, 10.36% and 13.26%, respectively, compared to 9.69%, 8.76%, 10.03%, and 11.75%, respectively, atJune 30, 2024 and 9.86%, 9.09%, 10.21%, and 11.89%, respectively atSeptember 30, 2023 .
Third Quarter 2024 Operating Results
Net Interest Income
-
Net interest income was
$106.8 million for third quarter 2024 compared to$109.0 million for third quarter 2023 and$105.1 million for second quarter 2024. The decrease from the prior year was primarily due to the increased funding costs on our deposit products offset to a lesser extent by increased earnings on average loan balances. The increase from the linked quarter was primarily due to increased earnings on loans and interest-bearing deposits offset by an increase in interest expense on deposits during the quarter. The third quarter 2024 includes$1.0 million in acquired loan accretion compared to$940 thousand in third quarter 2023 and$1.0 million in second quarter 2024. -
The average balance of total interest-earning assets grew by
$349.9 million and totaled$17.0 billion for the quarter endedSeptember 30, 2024 compared to$16.7 billion for the quarter endedSeptember 30, 2023 and decreased slightly by$89.1 million from$17.1 billion for the quarter endedJune 30, 2024 . The increase from the prior year is primarily due to an increase in average loans of$369.4 million due to organic growth primarily occurring in the second half of 2023. - The yield on interest-earning assets was 5.65% for third quarter 2024 compared to 5.31% for third quarter 2023 and 5.62% for second quarter 2024. The increase in asset yield compared to the prior year and linked quarter is primarily a result of increases in the benchmark rates over the last year. The average loan yield, net of acquired loan accretion was 6.04% for the current quarter, compared to 5.67% for prior year quarter and 6.00% for the linked quarter.
- The cost of interest-bearing liabilities, including borrowings, was 4.16% for third quarter 2024 compared to 3.72% for third quarter 2023 and 4.16% for second quarter 2024. The increase from the prior year is reflective of higher funding costs, primarily on deposit products as a result of Fed Funds rate increases in 2023 offset by decreased costs on FHLB advances, primarily due to lower holdings based on liquidity needs resulting in a shift in funding sources during the year-over-year period. The linked quarter cost of interest-bearing liabilities remains unchanged primarily due to a shift in the mix of deposits from higher rate accounts to lower rate accounts offset by the shift in borrowings from lower rate short-term borrowings to higher rate long-term borrowings.
- The net interest margin was 2.50% for third quarter 2024 compared to 2.60% for third quarter 2023 and 2.47% for second quarter 2024. The net interest margin excluding acquired loan accretion was 2.47% for third quarter 2024 compared to 2.58% for third quarter 2023 and 2.45% for second quarter 2024. The decrease in net interest margin from the prior year was primarily due to the increased funding costs on deposits, offset by a reduction in funding costs on advances and other borrowings due to lower average balances, as well as higher earnings on loans due to organic growth and rate increases for the respective periods. The linked quarter change positively reflects the increased rates on loans and lower rates paid on deposits offset by the shift in mix of short and long-term borrowings as discussed above.
Noninterest Income
-
Total noninterest income decreased
$185 thousand compared to third quarter 2023 and increased$28 thousand compared to second quarter 2024. -
The decrease from the prior year quarter primarily reflects a
$740 thousand decrease in other noninterest income offset by increases of$295 thousand in investment management fees and$187 thousand in BOLI income.
Noninterest Expense
-
Total noninterest expense increased
$8.6 million compared to third quarter 2023 and decreased$517.0 million compared to second quarter 2024. -
The increase in noninterest expense in third quarter 2024 compared to the prior year is due primarily to increases of
$6.4 million in salaries and benefits,$1.0 million in communications and technology expense and$543 thousand inFDIC assessment. In addition, there was$460 thousand of acquisition expenses incurred in the current quarter. -
The decrease from the linked quarter primarily reflects a decrease of
$1.9 million in acquisition expenses offset by an increase of$1.4 million inFDIC assessment. In addition, there was a$518.0 million goodwill impairment charge that occurred in the linked quarter. - The increase in salaries and benefits from the prior year primarily reflects increases in incentive and equity awards as well as increases in various employee benefits.
- The increase in communications and technology expense from the prior year was due to software cost increases among various technology and information security vendors, as well as an increase in cloud-based software expenses.
-
The increase in
FDIC assessment for the prior year and linked quarter reflects overall increases in the assessment rates, including the impact from the Company's current year loss position.
Provision for Credit Losses
-
The Company recorded a
$4.7 million provision for credit losses for third quarter 2024, compared to provision expense of$340 thousand for third quarter 2023 and zero provision for the linked quarter. Provision expense (reversal) during a given period is generally dependent on changes in various factors, including economic conditions, credit quality and past due trends, as well as loan growth or decline and charge-offs or specific credit loss allocations taken during the respective period. The increased provision expense for third quarter 2024 is primarily due to$4.5 million in additional specific credit allocations on a commercial relationship. -
The allowance for credit losses on loans was
$150.3 million , or 1.08% of total loans held for investment, net of mortgage warehouse purchase loans, atSeptember 30, 2024 , compared to$148.2 million , or 1.08% atSeptember 30, 2023 and compared to$145.3 million , or 1.04% atJune 30, 2024 . -
The allowance for credit losses on off-balance sheet exposures was
$3.4 million atSeptember 30, 2024 compared to$4.4 million atSeptember 30, 2023 , compared to$3.5 million atJune 30, 2024 . Changes in the allowance for unfunded commitments are generally driven by the remaining unfunded amount and the expected utilization rate of a given loan segment.
Income Taxes
-
Federal income tax expense of
$5.3 million was recorded for the third quarter 2024, an effective rate of 20.5% compared to federal tax expense of$8.2 million and an effective rate of 20.1% for the prior year quarter and income tax expense of$5.1 million and an effective rate of (1.0)% for the linked quarter. The effective tax rate in the linked quarter was primarily due to the goodwill impairment charge, of which$512.4 million is not deductible for tax purposes.
Subsequent Events
The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended
About
Forward-Looking Statements
From time to time the Company’s comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other related federal security laws. Forward-looking statements include information about the Company’s possible or assumed future results of operations, including its future revenues, income, expenses, provision for taxes, effective tax rate, earnings (loss) per share and cash flows, its future capital expenditures and dividends, its future financial condition and changes therein, including changes in the Company’s loan portfolio and allowance for credit losses, the Company’s future capital structure or changes therein, the plan and objectives of management for future operations, the Company’s future or proposed acquisitions, the future or expected effect of acquisitions on the Company’s operations, results of operations and financial condition, the Company’s future economic performance and the statements of the assumptions underlying any such statement. Such statements are typically, but not exclusively, identified by the use in the statements of words or phrases such as “aim,” “anticipate,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “is anticipated,” “is estimated,” “is expected,” “is intended,” “objective,” “plan,” “projected,” “projection,” “will affect,” “will be,” “will continue,” “will decrease,” “will grow,” “will impact,” “will increase,” “will incur,” “will reduce,” “will remain,” “will result,” “would be,” variations of such words or phrases (including where the word “could,” “may” or “would” is used rather than the word “will” in a phrase) and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that the Company makes are based on its current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Many possible events or factors could affect the Company’s future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. These possible events or factors include, but are not limited to: 1) the Company’s ability to sustain its current internal growth rate and total growth rate; 2) changes in geopolitical, business and economic events, occurrences and conditions, including changes in rates of inflation or deflation, nationally, regionally and in the Company’s target markets, particularly in
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. These measures and ratios include “adjusted net income,” “adjusted earnings,” “tangible book value,” “tangible book value per common share,” “adjusted efficiency ratio,” “tangible common equity to tangible assets,” “adjusted net interest margin,” “return on tangible equity,” “adjusted return on average assets” and “adjusted return on average equity” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in
We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for credit losses and the effect of goodwill, other intangible assets and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.
|
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Consolidated Financial Data |
||||||||||||||||
Three Months Ended |
||||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
As of and for the Quarter Ended |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Selected Income Statement Data |
|
|
|
|
|
|
|
|
|
|||||||
Interest income |
$ |
241,716 |
|
$ |
239,085 |
|
|
$ |
235,205 |
|
|
$ |
232,522 |
|
$ |
222,744 |
Interest expense |
|
134,878 |
|
|
133,937 |
|
|
|
132,174 |
|
|
|
126,217 |
|
|
113,695 |
Net interest income |
|
106,838 |
|
|
105,148 |
|
|
|
103,031 |
|
|
|
106,305 |
|
|
109,049 |
Provision for credit losses |
|
4,700 |
|
|
— |
|
|
|
(3,200 |
) |
|
|
3,480 |
|
|
340 |
Net interest income after provision for credit losses |
|
102,138 |
|
|
105,148 |
|
|
|
106,231 |
|
|
|
102,825 |
|
|
108,709 |
Noninterest income |
|
13,461 |
|
|
13,433 |
|
|
|
12,870 |
|
|
|
10,614 |
|
|
13,646 |
Noninterest expense |
|
89,896 |
|
|
606,911 |
|
|
|
88,473 |
|
|
|
95,125 |
|
|
81,334 |
Income tax expense |
|
5,266 |
|
|
5,125 |
|
|
|
6,478 |
|
|
|
3,455 |
|
|
8,246 |
Net income (loss) |
|
20,437 |
|
|
(493,455 |
) |
|
|
24,150 |
|
|
|
14,859 |
|
|
32,775 |
Adjusted net income (1) |
|
20,588 |
|
|
24,884 |
|
|
|
26,001 |
|
|
|
25,509 |
|
|
32,624 |
|
|
|
|
|
|
|
|
|
|
|||||||
Per Share Data (Common Stock) |
|
|
|
|
|
|
|
|
|
|||||||
Earnings (loss): |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.49 |
|
$ |
(11.93 |
) |
|
$ |
0.58 |
|
|
$ |
0.36 |
|
$ |
0.79 |
Diluted |
|
0.49 |
|
|
(11.93 |
) |
|
|
0.58 |
|
|
|
0.36 |
|
|
0.79 |
Adjusted earnings: |
|
|
|
|
|
|
|
|
|
|||||||
Basic (1) |
|
0.50 |
|
|
0.60 |
|
|
|
0.63 |
|
|
|
0.62 |
|
|
0.79 |
Diluted (1) |
|
0.50 |
|
|
0.60 |
|
|
|
0.63 |
|
|
|
0.62 |
|
|
0.79 |
Dividends |
|
0.38 |
|
|
0.38 |
|
|
|
0.38 |
|
|
|
0.38 |
|
|
0.38 |
Book value |
|
47.03 |
|
|
45.85 |
|
|
|
58.02 |
|
|
|
58.20 |
|
|
56.49 |
Tangible book value (1) |
|
34.54 |
|
|
33.27 |
|
|
|
32.85 |
|
|
|
32.90 |
|
|
31.11 |
Common shares outstanding |
|
41,439,096 |
|
|
41,376,169 |
|
|
|
41,377,745 |
|
|
|
41,281,919 |
|
|
41,284,003 |
Weighted average basic shares outstanding (2) |
|
41,432,637 |
|
|
41,377,917 |
|
|
|
41,322,744 |
|
|
|
41,283,041 |
|
|
41,284,964 |
Weighted average diluted shares outstanding (2) |
|
41,497,514 |
|
|
41,377,917 |
|
|
|
41,432,042 |
|
|
|
41,388,564 |
|
|
41,381,034 |
|
|
|
|
|
|
|
|
|
|
|||||||
Selected Period End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
$ |
18,583,149 |
|
$ |
18,359,162 |
|
|
$ |
18,871,452 |
|
|
$ |
19,035,102 |
|
$ |
18,519,872 |
Cash and cash equivalents |
|
1,348,055 |
|
|
770,749 |
|
|
|
729,998 |
|
|
|
721,989 |
|
|
711,709 |
Securities available for sale |
|
1,510,572 |
|
|
1,494,470 |
|
|
|
1,543,247 |
|
|
|
1,593,751 |
|
|
1,545,904 |
Securities held to maturity |
|
203,863 |
|
|
204,319 |
|
|
|
204,776 |
|
|
|
205,232 |
|
|
205,689 |
Loans, held for sale |
|
12,806 |
|
|
12,012 |
|
|
|
21,299 |
|
|
|
16,420 |
|
|
18,068 |
Loans, held for investment (3) |
|
13,896,238 |
|
|
13,988,169 |
|
|
|
14,059,277 |
|
|
|
14,160,853 |
|
|
13,781,102 |
Mortgage warehouse purchase loans |
|
392,691 |
|
|
633,654 |
|
|
|
554,616 |
|
|
|
549,689 |
|
|
442,302 |
Allowance for credit losses on loans |
|
150,285 |
|
|
145,323 |
|
|
|
148,437 |
|
|
|
151,861 |
|
|
148,249 |
|
|
517,660 |
|
|
520,553 |
|
|
|
1,041,506 |
|
|
|
1,044,581 |
|
|
1,047,687 |
Other real estate owned |
|
8,685 |
|
|
8,685 |
|
|
|
8,685 |
|
|
|
9,490 |
|
|
22,505 |
Noninterest-bearing deposits |
|
3,447,184 |
|
|
3,378,493 |
|
|
|
3,300,773 |
|
|
|
3,530,704 |
|
|
3,703,784 |
Interest-bearing deposits |
|
12,547,884 |
|
|
12,464,183 |
|
|
|
12,370,942 |
|
|
|
12,192,331 |
|
|
11,637,185 |
Borrowings (other than junior subordinated debentures) |
|
454,762 |
|
|
427,129 |
|
|
|
496,975 |
|
|
|
621,821 |
|
|
546,666 |
Junior subordinated debentures |
|
54,766 |
|
|
54,717 |
|
|
|
54,667 |
|
|
|
54,617 |
|
|
54,568 |
Total stockholders' equity |
|
1,948,898 |
|
|
1,897,083 |
|
|
|
2,400,807 |
|
|
|
2,402,593 |
|
|
2,332,098 |
|
||||||||||||||
Consolidated Financial Data |
||||||||||||||
Three Months Ended |
||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
As of and for the Quarter Ended |
|||||||||||||
|
|
|
|
|
|
|
|
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|
|||||
Selected Performance Metrics |
|
|
|
|
|
|
|
|
|
|||||
Return on average assets |
0.44 |
% |
|
(10.55 |
)% |
|
0.51 |
% |
|
0.31 |
% |
|
0.70 |
% |
Return on average equity |
4.24 |
|
|
(87.53 |
) |
|
4.05 |
|
|
2.51 |
|
|
5.51 |
|
Return on tangible equity (4) |
5.81 |
|
|
(146.65 |
) |
|
7.16 |
|
|
4.54 |
|
|
9.92 |
|
Adjusted return on average assets (1) |
0.45 |
|
|
0.53 |
|
|
0.55 |
|
|
0.54 |
|
|
0.70 |
|
Adjusted return on average equity (1) |
4.27 |
|
|
4.41 |
|
|
4.36 |
|
|
4.32 |
|
|
5.48 |
|
Adjusted return on tangible equity (1) (4) |
5.86 |
|
|
7.40 |
|
|
7.71 |
|
|
7.79 |
|
|
9.87 |
|
Net interest margin |
2.50 |
|
|
2.47 |
|
|
2.42 |
|
|
2.49 |
|
|
2.60 |
|
Efficiency ratio (5) |
72.32 |
|
|
509.32 |
|
|
73.68 |
|
|
78.70 |
|
|
63.75 |
|
Adjusted efficiency ratio (1) (5) |
72.17 |
|
|
71.09 |
|
|
71.63 |
|
|
67.96 |
|
|
63.84 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit Quality Ratios (3) (6) |
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets to total assets |
0.37 |
% |
|
0.35 |
% |
|
0.34 |
% |
|
0.32 |
% |
|
0.33 |
% |
Nonperforming loans to total loans held for investment |
0.43 |
|
|
0.40 |
|
|
0.40 |
|
|
0.37 |
|
|
0.28 |
|
Nonperforming assets to total loans held for investment and other real estate |
0.49 |
|
|
0.46 |
|
|
0.46 |
|
|
0.43 |
|
|
0.44 |
|
Allowance for credit losses on loans to nonperforming loans |
253.57 |
|
|
258.83 |
|
|
263.85 |
|
|
293.17 |
|
|
385.81 |
|
Allowance for credit losses to total loans held for investment |
1.08 |
|
|
1.04 |
|
|
1.06 |
|
|
1.07 |
|
|
1.08 |
|
Net charge-offs to average loans outstanding (annualized) |
— |
|
|
0.10 |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|||||
Estimated common equity Tier 1 capital to risk-weighted assets |
10.01 |
% |
|
9.69 |
% |
|
9.60 |
% |
|
9.58 |
% |
|
9.86 |
% |
Estimated tier 1 capital to average assets |
9.08 |
|
|
8.76 |
|
|
8.91 |
|
|
8.94 |
|
|
9.09 |
|
Estimated tier 1 capital to risk-weighted assets |
10.36 |
|
|
10.03 |
|
|
9.94 |
|
|
9.93 |
|
|
10.21 |
|
Estimated total capital to risk-weighted assets |
13.26 |
|
|
11.75 |
|
|
11.68 |
|
|
11.57 |
|
|
11.89 |
|
Total stockholders' equity to total assets |
10.49 |
|
|
10.33 |
|
|
12.72 |
|
|
12.62 |
|
|
12.59 |
|
Tangible common equity to tangible assets (1) |
7.92 |
|
|
7.72 |
|
|
7.62 |
|
|
7.55 |
|
|
7.35 |
|
____________
(1) |
Non-GAAP financial measure. See reconciliation. |
|
(2) |
Total number of shares includes participating shares (those with dividend rights). |
|
(3) |
Loans held for investment excludes mortgage warehouse purchase loans. |
|
(4) |
Non-GAAP financial measure. Excludes average balance of goodwill and net other intangible assets. |
|
(5) |
Efficiency ratio excludes amortization of other intangible assets. See reconciliation of Non-GAAP financial measures. |
|
(6) |
Credit metrics - Nonperforming assets, which consist of nonperforming loans, OREO and other repossessed assets, totaled |
|
||||||||||||||||
Consolidated Statements of Income (Loss) |
||||||||||||||||
Three and Nine Months Ended |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
|
$ |
221,169 |
|
|
$ |
202,725 |
|
|
$ |
655,971 |
|
|
$ |
580,631 |
|
Interest on taxable securities |
|
|
7,174 |
|
|
|
7,674 |
|
|
|
22,851 |
|
|
|
23,323 |
|
Interest on nontaxable securities |
|
|
2,482 |
|
|
|
2,558 |
|
|
|
7,524 |
|
|
|
7,747 |
|
Interest on interest-bearing deposits and other |
|
|
10,891 |
|
|
|
9,787 |
|
|
|
29,660 |
|
|
|
27,513 |
|
Total interest income |
|
|
241,716 |
|
|
|
222,744 |
|
|
|
716,006 |
|
|
|
639,214 |
|
Interest expense: |
|
|
|
|
|
|
|
|
||||||||
Interest on deposits |
|
|
127,075 |
|
|
|
102,600 |
|
|
|
374,833 |
|
|
|
243,005 |
|
Interest on FHLB advances |
|
|
— |
|
|
|
6,054 |
|
|
|
4,605 |
|
|
|
29,903 |
|
Interest on other borrowings |
|
|
6,573 |
|
|
|
3,808 |
|
|
|
17,871 |
|
|
|
12,248 |
|
Interest on junior subordinated debentures |
|
|
1,230 |
|
|
|
1,233 |
|
|
|
3,680 |
|
|
|
3,480 |
|
Total interest expense |
|
|
134,878 |
|
|
|
113,695 |
|
|
|
400,989 |
|
|
|
288,636 |
|
Net interest income |
|
|
106,838 |
|
|
|
109,049 |
|
|
|
315,017 |
|
|
|
350,578 |
|
Provision for credit losses |
|
|
4,700 |
|
|
|
340 |
|
|
|
1,500 |
|
|
|
650 |
|
Net interest income after provision for credit losses |
|
|
102,138 |
|
|
|
108,709 |
|
|
|
313,517 |
|
|
|
349,928 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts |
|
|
3,617 |
|
|
|
3,568 |
|
|
|
10,803 |
|
|
|
10,436 |
|
Investment management fees |
|
|
2,765 |
|
|
|
2,470 |
|
|
|
8,222 |
|
|
|
7,215 |
|
Mortgage banking revenue |
|
|
1,682 |
|
|
|
1,774 |
|
|
|
4,857 |
|
|
|
5,646 |
|
Mortgage warehouse purchase program fees |
|
|
617 |
|
|
|
555 |
|
|
|
1,812 |
|
|
|
1,414 |
|
(Loss) gain on sale of loans |
|
|
— |
|
|
|
(7 |
) |
|
|
74 |
|
|
|
(14 |
) |
Gain on sale of other real estate |
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
(Loss) gain on sale and disposal of premises and equipment |
|
|
(9 |
) |
|
|
(56 |
) |
|
|
(20 |
) |
|
|
345 |
|
Increase in cash surrender value of BOLI |
|
|
1,652 |
|
|
|
1,465 |
|
|
|
4,779 |
|
|
|
4,252 |
|
Other |
|
|
3,137 |
|
|
|
3,877 |
|
|
|
9,224 |
|
|
|
11,201 |
|
Total noninterest income |
|
|
13,461 |
|
|
|
13,646 |
|
|
|
39,764 |
|
|
|
40,495 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
50,039 |
|
|
|
43,618 |
|
|
|
146,432 |
|
|
|
136,833 |
|
Occupancy |
|
|
12,326 |
|
|
|
12,408 |
|
|
|
36,951 |
|
|
|
35,607 |
|
Communications and technology |
|
|
7,937 |
|
|
|
6,916 |
|
|
|
23,298 |
|
|
|
21,202 |
|
|
|
|
4,196 |
|
|
|
3,653 |
|
|
|
13,154 |
|
|
|
10,171 |
|
Advertising and public relations |
|
|
479 |
|
|
|
587 |
|
|
|
1,747 |
|
|
|
2,195 |
|
Other real estate owned expenses (income), net |
|
|
141 |
|
|
|
(253 |
) |
|
|
169 |
|
|
|
(482 |
) |
Impairment of other real estate |
|
|
— |
|
|
|
— |
|
|
|
345 |
|
|
|
2,200 |
|
Amortization of other intangible assets |
|
|
2,893 |
|
|
|
3,111 |
|
|
|
8,921 |
|
|
|
9,333 |
|
Litigation settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
102,500 |
|
Professional fees |
|
|
1,296 |
|
|
|
1,262 |
|
|
|
4,406 |
|
|
|
6,112 |
|
Acquisition expense, including legal |
|
|
460 |
|
|
|
— |
|
|
|
2,798 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
518,000 |
|
|
|
— |
|
Other |
|
|
10,129 |
|
|
|
10,032 |
|
|
|
29,059 |
|
|
|
30,748 |
|
Total noninterest expense |
|
|
89,896 |
|
|
|
81,334 |
|
|
|
785,280 |
|
|
|
356,419 |
|
Income (loss) before taxes |
|
|
25,703 |
|
|
|
41,021 |
|
|
|
(431,999 |
) |
|
|
34,004 |
|
Income tax expense |
|
|
5,266 |
|
|
|
8,246 |
|
|
|
16,869 |
|
|
|
5,662 |
|
Net income (loss) |
|
$ |
20,437 |
|
|
$ |
32,775 |
|
|
$ |
(448,868 |
) |
|
$ |
28,342 |
|
|
|||||||
Consolidated Balance Sheets |
|||||||
As of |
|||||||
(Dollars in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
2024 |
|
|
|
2023 |
|
Cash and due from banks |
$ |
103,157 |
|
|
$ |
98,396 |
|
Interest-bearing deposits in other banks |
|
1,244,898 |
|
|
|
623,593 |
|
Cash and cash equivalents |
|
1,348,055 |
|
|
|
721,989 |
|
Certificates of deposit held in other banks |
|
— |
|
|
|
248 |
|
Securities available for sale, at fair value |
|
1,510,572 |
|
|
|
1,593,751 |
|
Securities held to maturity, net of allowance for credit losses of |
|
203,863 |
|
|
|
205,232 |
|
Loans held for sale (includes |
|
12,806 |
|
|
|
16,420 |
|
Loans, net of allowance for credit losses of |
|
14,138,644 |
|
|
|
14,558,681 |
|
Premises and equipment, net |
|
350,252 |
|
|
|
355,833 |
|
Other real estate owned |
|
8,685 |
|
|
|
9,490 |
|
|
|
14,489 |
|
|
|
34,915 |
|
Bank-owned life insurance (BOLI) |
|
250,276 |
|
|
|
245,497 |
|
Deferred tax asset |
|
67,733 |
|
|
|
92,665 |
|
|
|
476,021 |
|
|
|
994,021 |
|
Other intangible assets, net |
|
41,639 |
|
|
|
50,560 |
|
Other assets |
|
160,114 |
|
|
|
155,800 |
|
Total assets |
$ |
18,583,149 |
|
|
$ |
19,035,102 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Deposits: |
|
|
|
||||
Noninterest-bearing |
$ |
3,447,184 |
|
|
$ |
3,530,704 |
|
Interest-bearing |
|
12,547,884 |
|
|
|
12,192,331 |
|
Total deposits |
|
15,995,068 |
|
|
|
15,723,035 |
|
FHLB advances |
|
— |
|
|
|
350,000 |
|
Other borrowings |
|
454,762 |
|
|
|
271,821 |
|
Junior subordinated debentures |
|
54,766 |
|
|
|
54,617 |
|
Other liabilities |
|
129,655 |
|
|
|
233,036 |
|
Total liabilities |
|
16,634,251 |
|
|
|
16,632,509 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock (0 and 0 shares outstanding, respectively) |
|
— |
|
|
|
— |
|
Common stock (41,439,096 and 41,281,919 shares outstanding, respectively) |
|
414 |
|
|
|
413 |
|
Additional paid-in capital |
|
1,974,143 |
|
|
|
1,966,686 |
|
Retained earnings |
|
117,652 |
|
|
|
616,724 |
|
Accumulated other comprehensive loss |
|
(143,311 |
) |
|
|
(181,230 |
) |
Total stockholders’ equity |
|
1,948,898 |
|
|
|
2,402,593 |
|
Total liabilities and stockholders’ equity |
$ |
18,583,149 |
|
|
$ |
19,035,102 |
|
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Three Months Ended |
||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||
|
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (4) |
|
Average Outstanding Balance |
|
Interest |
|
Yield/ Rate (4) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
14,487,650 |
|
$ |
221,169 |
|
6.07 |
% |
|
$ |
14,118,264 |
|
$ |
202,725 |
|
5.70 |
% |
Taxable securities |
|
|
1,326,655 |
|
|
7,174 |
|
2.15 |
|
|
|
1,411,578 |
|
|
7,674 |
|
2.16 |
|
Nontaxable securities |
|
|
387,537 |
|
|
2,482 |
|
2.55 |
|
|
|
410,391 |
|
|
2,558 |
|
2.47 |
|
Interest-bearing deposits and other |
|
|
804,594 |
|
|
10,891 |
|
5.38 |
|
|
|
716,271 |
|
|
9,787 |
|
5.42 |
|
Total interest-earning assets |
|
|
17,006,436 |
|
|
241,716 |
|
5.65 |
|
|
|
16,656,504 |
|
|
222,744 |
|
5.31 |
|
Noninterest-earning assets |
|
|
1,292,346 |
|
|
|
|
|
|
1,864,096 |
|
|
|
|
||||
Total assets |
|
$ |
18,298,782 |
|
|
|
|
|
$ |
18,520,600 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,490,570 |
|
$ |
51,584 |
|
3.74 |
% |
|
$ |
5,596,274 |
|
$ |
47,657 |
|
3.38 |
% |
Savings accounts |
|
|
497,721 |
|
|
304 |
|
0.24 |
|
|
|
590,577 |
|
|
90 |
|
0.06 |
|
Money market accounts |
|
|
2,181,715 |
|
|
22,893 |
|
4.17 |
|
|
|
1,565,181 |
|
|
15,200 |
|
3.85 |
|
Certificates of deposit |
|
|
4,216,985 |
|
|
52,294 |
|
4.93 |
|
|
|
3,566,496 |
|
|
39,653 |
|
4.41 |
|
Total deposits |
|
|
12,386,991 |
|
|
127,075 |
|
4.08 |
|
|
|
11,318,528 |
|
|
102,600 |
|
3.60 |
|
FHLB advances |
|
|
— |
|
|
— |
|
— |
|
|
|
463,967 |
|
|
6,054 |
|
5.18 |
|
Other borrowings - short-term |
|
|
166,005 |
|
|
2,106 |
|
5.05 |
|
|
|
41,087 |
|
|
738 |
|
7.13 |
|
Other borrowings - long-term |
|
|
279,725 |
|
|
4,467 |
|
6.35 |
|
|
|
237,862 |
|
|
3,070 |
|
5.12 |
|
Junior subordinated debentures |
|
|
54,749 |
|
|
1,230 |
|
8.94 |
|
|
|
54,550 |
|
|
1,233 |
|
8.97 |
|
Total interest-bearing liabilities |
|
|
12,887,470 |
|
|
134,878 |
|
4.16 |
|
|
|
12,115,994 |
|
|
113,695 |
|
3.72 |
|
Noninterest-bearing demand accounts |
|
|
3,361,194 |
|
|
|
|
|
|
3,798,091 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
132,968 |
|
|
|
|
|
|
246,340 |
|
|
|
|
||||
Stockholders’ equity |
|
|
1,917,150 |
|
|
|
|
|
|
2,360,175 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,298,782 |
|
|
|
|
|
$ |
18,520,600 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
106,838 |
|
|
|
|
|
$ |
109,049 |
|
|
||||
Interest rate spread |
|
|
|
|
|
1.49 |
% |
|
|
|
|
|
1.59 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.50 |
|
|
|
|
|
|
2.60 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
107,971 |
|
2.53 |
|
|
|
|
$ |
110,077 |
|
2.62 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
131.96 |
|
|
|
|
|
|
137.48 |
|
____________
(1) |
Average loan balances include nonaccrual loans. |
(2) |
Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
(3) |
A tax-equivalent adjustment has been computed using a federal income tax rate of 21%. |
(4) |
Yield and rates for the three month periods are annualized. |
|
||||||||||||||||||
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis |
||||||||||||||||||
Nine Months Ended |
||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
The analysis below shows average interest-earning assets and interest-bearing liabilities together with the average yield on the interest-earning assets and the average cost of the interest-bearing liabilities for the periods presented. |
||||||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||||
|
|
Average Outstanding Balance |
|
Interest |
|
Yield/Rate (4) |
|
Average Outstanding Balance |
|
Interest |
|
Yield/Rate (4) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
$ |
14,578,678 |
|
$ |
655,971 |
|
6.01 |
% |
|
$ |
14,026,604 |
|
$ |
580,631 |
|
5.53 |
% |
Taxable securities |
|
|
1,367,468 |
|
|
22,851 |
|
2.23 |
|
|
|
1,444,280 |
|
|
23,323 |
|
2.16 |
|
Nontaxable securities |
|
|
392,657 |
|
|
7,524 |
|
2.56 |
|
|
|
417,459 |
|
|
7,747 |
|
2.48 |
|
Interest-bearing deposits and other |
|
|
730,098 |
|
|
29,660 |
|
5.43 |
|
|
|
724,787 |
|
|
27,513 |
|
5.08 |
|
Total interest-earning assets |
|
|
17,068,901 |
|
|
716,006 |
|
5.60 |
|
|
|
16,613,130 |
|
|
639,214 |
|
5.14 |
|
Noninterest-earning assets |
|
|
1,609,929 |
|
|
|
|
|
|
1,855,135 |
|
|
|
|
||||
Total assets |
|
$ |
18,678,830 |
|
|
|
|
|
$ |
18,468,265 |
|
|
|
|
||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Checking accounts |
|
$ |
5,494,894 |
|
$ |
151,144 |
|
3.67 |
% |
|
$ |
5,836,196 |
|
$ |
128,493 |
|
2.94 |
% |
Savings accounts |
|
|
515,145 |
|
|
693 |
|
0.18 |
|
|
|
652,067 |
|
|
263 |
|
0.05 |
|
Money market accounts |
|
|
2,024,517 |
|
|
63,418 |
|
4.18 |
|
|
|
1,587,340 |
|
|
38,646 |
|
3.26 |
|
Certificates of deposit |
|
|
4,285,623 |
|
|
159,578 |
|
4.97 |
|
|
|
2,604,697 |
|
|
75,603 |
|
3.88 |
|
Total deposits |
|
|
12,320,179 |
|
|
374,833 |
|
4.06 |
|
|
|
10,680,300 |
|
|
243,005 |
|
3.04 |
|
FHLB advances |
|
|
112,044 |
|
|
4,605 |
|
5.49 |
|
|
|
817,436 |
|
|
29,903 |
|
4.89 |
|
Other borrowings - short-term |
|
|
184,049 |
|
|
7,264 |
|
5.27 |
|
|
|
40,196 |
|
|
2,082 |
|
6.93 |
|
Other borrowings - long-term |
|
|
252,175 |
|
|
10,607 |
|
5.62 |
|
|
|
247,258 |
|
|
10,166 |
|
5.50 |
|
Junior subordinated debentures |
|
|
54,699 |
|
|
3,680 |
|
8.99 |
|
|
|
54,501 |
|
|
3,480 |
|
8.54 |
|
Total interest-bearing liabilities |
|
|
12,923,146 |
|
|
400,989 |
|
4.14 |
|
|
|
11,839,691 |
|
|
288,636 |
|
3.26 |
|
Noninterest-bearing demand accounts |
|
|
3,354,693 |
|
|
|
|
|
|
4,058,686 |
|
|
|
|
||||
Noninterest-bearing liabilities |
|
|
207,665 |
|
|
|
|
|
|
203,021 |
|
|
|
|
||||
Stockholders’ equity |
|
|
2,193,326 |
|
|
|
|
|
|
2,366,867 |
|
|
|
|
||||
Total liabilities and equity |
|
$ |
18,678,830 |
|
|
|
|
|
$ |
18,468,265 |
|
|
|
|
||||
Net interest income |
|
|
|
$ |
315,017 |
|
|
|
|
|
$ |
350,578 |
|
|
||||
Interest rate spread |
|
|
|
|
|
1.46 |
% |
|
|
|
|
|
1.88 |
% |
||||
Net interest margin (2) |
|
|
|
|
|
2.47 |
|
|
|
|
|
|
2.82 |
|
||||
Net interest income and margin (tax equivalent basis) (3) |
|
|
|
$ |
318,302 |
|
2.49 |
|
|
|
|
$ |
353,680 |
|
2.85 |
|
||
Average interest-earning assets to interest-bearing liabilities |
|
|
|
|
|
132.08 |
|
|
|
|
|
|
140.32 |
|
____________
(1) |
Average loan balances include nonaccrual loans. |
|
(2) |
Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
|
(3) |
A tax-equivalent adjustment has been computed using a federal income tax rate of 21%. |
|
(4) |
Yield and rates for the nine month periods are annualized. |
|
||||||||||||||
Loan Portfolio Composition |
||||||||||||||
As of |
||||||||||||||
(Dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Total Loans By Class |
|
|
|
|
||||||||||
|
|
|
|
|
||||||||||
|
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||
Commercial |
|
$ |
2,123,443 |
|
|
14.8 |
% |
|
$ |
2,266,851 |
|
|
15.4 |
% |
Mortgage warehouse purchase loans |
|
|
392,691 |
|
|
2.7 |
|
|
|
549,689 |
|
|
3.7 |
|
Real estate: |
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
8,311,344 |
|
|
58.2 |
|
|
|
8,289,124 |
|
|
56.3 |
|
Commercial construction, land and land development |
|
|
1,140,863 |
|
|
8.0 |
|
|
|
1,231,484 |
|
|
8.4 |
|
Residential real estate (1) |
|
|
1,715,099 |
|
|
12.0 |
|
|
|
1,686,206 |
|
|
11.5 |
|
Single-family interim construction |
|
|
430,283 |
|
|
3.0 |
|
|
|
517,928 |
|
|
3.5 |
|
Agricultural |
|
|
113,851 |
|
|
0.8 |
|
|
|
109,451 |
|
|
0.7 |
|
Consumer |
|
|
74,161 |
|
|
0.5 |
|
|
|
76,229 |
|
|
0.5 |
|
Total loans |
|
|
14,301,735 |
|
|
100.0 |
% |
|
|
14,726,962 |
|
|
100.0 |
% |
Allowance for credit losses |
|
|
(150,285 |
) |
|
|
|
|
(151,861 |
) |
|
|
||
Total loans, net |
|
$ |
14,151,450 |
|
|
|
|
$ |
14,575,101 |
|
|
|
____________
(1) |
Includes loans held for sale of |
|
||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
(Dollars in thousands, except for share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
For the Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED NET INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income - Reported |
(a) |
$ |
106,838 |
|
|
$ |
105,148 |
|
|
$ |
103,031 |
|
|
$ |
106,305 |
|
|
$ |
109,049 |
|
Provision for Credit Losses - Reported |
(b) |
|
4,700 |
|
|
|
— |
|
|
|
(3,200 |
) |
|
|
3,480 |
|
|
|
340 |
|
Noninterest Income - Reported |
(c) |
|
13,461 |
|
|
|
13,433 |
|
|
|
12,870 |
|
|
|
10,614 |
|
|
|
13,646 |
|
(Gain) loss on sale of loans |
|
|
— |
|
|
|
— |
|
|
|
(74 |
) |
|
|
— |
|
|
|
7 |
|
(Gain) loss on sale of other real estate |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
1,797 |
|
|
|
— |
|
Loss on sale and disposal of premises and equipment |
|
|
9 |
|
|
|
11 |
|
|
|
— |
|
|
|
22 |
|
|
|
56 |
|
Recoveries on loans charged off prior to acquisition |
|
|
(6 |
) |
|
|
(57 |
) |
|
|
(5 |
) |
|
|
(64 |
) |
|
|
(279 |
) |
Adjusted Noninterest Income |
(d) |
|
13,464 |
|
|
|
13,387 |
|
|
|
12,778 |
|
|
|
12,369 |
|
|
|
13,430 |
|
Noninterest Expense - Reported |
(e) |
|
89,896 |
|
|
|
606,911 |
|
|
|
88,473 |
|
|
|
95,125 |
|
|
|
81,334 |
|
OREO impairment |
|
|
— |
|
|
|
— |
|
|
|
(345 |
) |
|
|
(3,015 |
) |
|
|
— |
|
|
|
|
273 |
|
|
|
645 |
|
|
|
(2,095 |
) |
|
|
(8,329 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
(518,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition expense (1) |
|
|
(460 |
) |
|
|
(2,338 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
(27 |
) |
Adjusted Noninterest Expense |
(f) |
|
89,709 |
|
|
|
87,218 |
|
|
|
86,033 |
|
|
|
83,754 |
|
|
|
81,307 |
|
Income Tax Expense - Reported |
(g) |
|
5,266 |
|
|
|
5,125 |
|
|
|
6,478 |
|
|
|
3,455 |
|
|
|
8,246 |
|
Net Income (Loss) - Reported |
(a) - (b) + (c) - (e) - (g) = (h) |
|
20,437 |
|
|
|
(493,455 |
) |
|
|
24,150 |
|
|
|
14,859 |
|
|
|
32,775 |
|
Adjusted Net Income (2) |
(a) - (b) + (d) - (f) = (i) |
$ |
20,588 |
|
|
$ |
24,884 |
|
|
$ |
26,001 |
|
|
$ |
25,509 |
|
|
$ |
32,624 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED PROFITABILITY (3) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Average Assets |
(j) |
$ |
18,298,782 |
|
|
$ |
18,803,877 |
|
|
$ |
18,938,008 |
|
|
$ |
18,815,342 |
|
|
$ |
18,520,600 |
|
Total Average Stockholders' Equity |
(k) |
|
1,917,150 |
|
|
|
2,267,289 |
|
|
|
2,398,573 |
|
|
|
2,344,652 |
|
|
|
2,360,175 |
|
Total Average Tangible Stockholders' Equity (4) |
(l) |
|
1,398,494 |
|
|
|
1,353,313 |
|
|
|
1,356,042 |
|
|
|
1,299,026 |
|
|
|
1,311,417 |
|
Reported Return on Average Assets |
(h) / (j) |
|
0.44 |
% |
|
|
(10.55 |
)% |
|
|
0.51 |
% |
|
|
0.31 |
% |
|
|
0.70 |
% |
Reported Return on Average Equity |
(h) / (k) |
|
4.24 |
|
|
|
(87.53 |
) |
|
|
4.05 |
|
|
|
2.51 |
|
|
|
5.51 |
|
Reported Return on Average Tangible Equity |
(h) / (l) |
|
5.81 |
|
|
|
(146.65 |
) |
|
|
7.16 |
|
|
|
4.54 |
|
|
|
9.92 |
|
Adjusted Return on Average Assets (5) |
(i) / (j) |
|
0.45 |
|
|
|
0.53 |
|
|
|
0.55 |
|
|
|
0.54 |
|
|
|
0.70 |
|
Adjusted Return on Average Equity (5) |
(i) / (k) |
|
4.27 |
|
|
|
4.41 |
|
|
|
4.36 |
|
|
|
4.32 |
|
|
|
5.48 |
|
Adjusted Return on Tangible Equity (5) |
(i) / (l) |
|
5.86 |
|
|
|
7.40 |
|
|
|
7.71 |
|
|
|
7.79 |
|
|
|
9.87 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of other intangible assets |
(m) |
$ |
2,893 |
|
|
$ |
2,953 |
|
|
$ |
3,075 |
|
|
$ |
3,106 |
|
|
$ |
3,111 |
|
Reported Efficiency Ratio |
(e - m) / (a + c) |
|
72.32 |
% |
|
|
509.32 |
% |
|
|
73.68 |
% |
|
|
78.70 |
% |
|
|
63.75 |
% |
Adjusted Efficiency Ratio |
(f - m) / (a + d) |
|
72.17 |
|
|
|
71.09 |
|
|
|
71.63 |
|
|
|
67.96 |
|
|
|
63.84 |
|
____________
(1) |
Prior to 2024, acquisition expenses include compensation related expenses for equity awards granted at acquisition. Second and third quarter 2024 includes merger-related expenses related to the announced merger with SouthState Corporation. |
|
(2) |
Assumes an adjusted effective tax rate of 20.5%, 20.5%, 21.2%, 18.9%, and 20.1%, respectively. Second quarter 2024 normalized rate excludes the effect of nondeductible acquisition expenses and goodwill impairment charges. |
|
(3) |
Quarterly metrics are annualized. |
|
(4) |
Excludes average balance of goodwill and net other intangible assets. |
|
(5) |
Calculated using adjusted net income. |
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
As of |
|||||||||||||||||||
(Dollars in thousands, except per share information) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
Tangible Book Value & Tangible Common Equity To Tangible Assets Ratio |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of the Quarter Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Total common stockholders' equity |
$ |
1,948,898 |
|
|
$ |
1,897,083 |
|
|
$ |
2,400,807 |
|
|
$ |
2,402,593 |
|
|
$ |
2,332,098 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(476,021 |
) |
|
|
(476,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(41,639 |
) |
|
|
(44,532 |
) |
|
|
(47,485 |
) |
|
|
(50,560 |
) |
|
|
(53,666 |
) |
Tangible common equity |
$ |
1,431,238 |
|
|
$ |
1,376,530 |
|
|
$ |
1,359,301 |
|
|
$ |
1,358,012 |
|
|
$ |
1,284,411 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
$ |
18,583,149 |
|
|
$ |
18,359,162 |
|
|
$ |
18,871,452 |
|
|
$ |
19,035,102 |
|
|
$ |
18,519,872 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(476,021 |
) |
|
|
(476,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
|
|
(994,021 |
) |
Other intangible assets, net |
|
(41,639 |
) |
|
|
(44,532 |
) |
|
|
(47,485 |
) |
|
|
(50,560 |
) |
|
|
(53,666 |
) |
Tangible assets |
$ |
18,065,489 |
|
|
$ |
17,838,609 |
|
|
$ |
17,829,946 |
|
|
$ |
17,990,521 |
|
|
$ |
17,472,185 |
|
Common shares outstanding |
|
41,439,096 |
|
|
|
41,376,169 |
|
|
|
41,377,745 |
|
|
|
41,281,919 |
|
|
|
41,284,003 |
|
Tangible common equity to tangible assets |
|
7.92 |
% |
|
|
7.72 |
% |
|
|
7.62 |
% |
|
|
7.55 |
% |
|
|
7.35 |
% |
Book value per common share |
$ |
47.03 |
|
|
$ |
45.85 |
|
|
$ |
58.02 |
|
|
$ |
58.20 |
|
|
$ |
56.49 |
|
Tangible book value per common share |
|
34.54 |
|
|
|
33.27 |
|
|
|
32.85 |
|
|
|
32.90 |
|
|
|
31.11 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241021709157/en/
Analysts/Investors:
Executive Vice President, Chief Financial Officer
(972) 562-9004
Paul.Langdale@ifinancial.com
M
edia:
Executive Vice President, Chief Marketing Officer
(972) 562-9004
Wendi.Costlow@ifinancial.com
Source: