Highlights
- Net income of
$15.1 million , or$0.68 diluted EPS - Adjusted net income (non-GAAP) of
$17.1 million , or$0.77 diluted EPS - Closed on the acquisition of
Blackhawk Bancorp, Inc. (“Blackhawk”) onAugust 15 th - Completed balance sheet restructuring by selling a portion of Blackhawk bonds
- Increased liquidity position and lowered loan to deposit ratio to 87%
- Net interest margin, on a tax equivalent basis (non-GAAP), improved to 3.06% for the third quarter
“We are pleased to deliver solid core results that provide a baseline to the earnings momentum we expect to achieve with the Blackhawk acquisition,” said
Blackhawk Update
The Company has received approval from the OCC to complete the merger of
With the closing of the acquisition of Blackhawk on
After closing the acquisition, the Company sold a portion of Blackhawk’s bonds from its investment portfolio for net proceeds totaling
Net Interest Income
Net interest income for the third quarter of 2023 increased by
In comparison to the third quarter of 2022, net interest income increased
Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.06% for the third quarter of 2023, which was 22 basis points higher compared to the prior quarter. Earning asset yields increased by 46 basis points and the average cost of funds increased 24 basis points. The quarter included a net
In comparison to the third quarter of last year, the net interest margin decreased 15 basis points, with an average earnings asset increase of 112 basis points versus the average cost of funds increase of 127 basis points.
Loan Portfolio
Total loans ended the quarter at
Asset Quality
The Company’s strong credit culture continues to be reflected in its asset quality metrics for
Deposits
Total deposits ended the quarter at
Noninterest Income
Noninterest income represented 31% of our total net revenues in the quarter and 32% year-to-date.
Noninterest income for the third quarter of 2023 was
In comparison to the third quarter of 2022, noninterest income increased
Noninterest Expenses
Noninterest expense for the third quarter of 2023 totaled
In comparison to the third quarter of 2022, noninterest expenses increased
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2023 was 58.6% compared to 60.4% in the prior quarter and 59.6% for the same period last year.
Capital Levels
The Company’s capital levels remained strong and above the “well capitalized” levels. During the third quarter, the closing of the Blackhawk acquisition resulted in decreases to the ratios. Capital levels ended the period as follows:
Total capital to risk-weighted assets | 12.60% |
Tier 1 capital to risk-weighted assets | 10.19% |
Common equity tier 1 capital to risk-weighted assets | 9.85% |
Leverage ratio | 9.74% |
Tangible book value per share declined in the period to
About First Mid:
Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, the possibility that any of the anticipated benefits of the integration of the operations of Blackhawk with First Mid will be materially delayed or will be more costly or difficult than expected; the inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required regulatory, shareholder and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the
Investor Contact:
VP, Shareholder Relations
217-258-0463
aholt@firstmid.com
Chief Financial Officer
217-258-1528
msmith@firstmid.com
– Tables Follow –
Condensed Consolidated Balance Sheets | |||||||||||||
(In thousands, unaudited) | |||||||||||||
As of | |||||||||||||
2023 | 2022 | 2022 | |||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 383,237 | $ | 152,433 | $ | 160,954 | |||||||
Investment securities | 1,226,746 | 1,223,720 | 1,235,505 | ||||||||||
Loans (including loans held for sale) | 5,540,065 | 4,826,212 | 4,720,290 | ||||||||||
Less allowance for credit losses | (68,241 | ) | (59,093 | ) | (58,777 | ) | |||||||
Net loans | 5,471,824 | 4,767,119 | 4,661,513 | ||||||||||
Premises and equipment, net | 102,004 | 90,473 | 90,659 | ||||||||||
267,793 | 169,897 | 170,897 | |||||||||||
Bank owned life insurance | 165,022 | 151,756 | 150,831 | ||||||||||
Other assets | 238,668 | 188,817 | 181,024 | ||||||||||
Total assets | $ | 7,855,294 | $ | 6,744,215 | $ | 6,651,383 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Deposits: | |||||||||||||
Non-interest bearing | $ | 1,389,022 | $ | 1,256,514 | $ | 1,334,686 | |||||||
Interest bearing | 4,957,302 | 4,000,487 | 4,148,512 | ||||||||||
Total deposits | 6,346,324 | 5,257,001 | 5,483,198 | ||||||||||
Repurchase agreement with customers | 214,978 | 221,414 | 220,707 | ||||||||||
Other borrowings | 364,953 | 465,071 | 181,232 | ||||||||||
Junior subordinated debentures | 24,003 | 19,364 | 19,322 | ||||||||||
Subordinated debt | 106,648 | 94,553 | 94,515 | ||||||||||
Other liabilities | 60,440 | 53,657 | 51,694 | ||||||||||
Total liabilities | 7,117,346 | 6,111,060 | 6,050,668 | ||||||||||
Total stockholders’ equity | 737,948 | 633,155 | 600,715 | ||||||||||
Total liabilities and stockholders’ equity | $ | 7,855,294 | $ | 6,744,215 | $ | 6,651,383 | |||||||
Condensed Consolidated Statements of Income | ||||||||||||||
(In thousands, except per share data, unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans | $ | 69,143 | $ | 49,278 | $ | 183,747 | $ | 132,741 | ||||||
Interest on investment securities | 9,284 | 7,302 | 23,604 | 22,095 | ||||||||||
Interest on federal funds sold & other deposits | 2,011 | 174 | 2,888 | 346 | ||||||||||
Total interest income | 80,438 | 56,754 | 210,239 | 155,182 | ||||||||||
Interest expense: | ||||||||||||||
Interest on deposits | 22,047 | 4,915 | 51,394 | 9,586 | ||||||||||
Interest on securities sold under agreements to repurchase | 1,625 | 428 | 4,811 | 632 | ||||||||||
Interest on other borrowings | 4,749 | 1,927 | 13,716 | 2,848 | ||||||||||
Interest on jr. subordinated debentures | 545 | 241 | 1,314 | 553 | ||||||||||
Interest on subordinated debt | 1,029 | 986 | 3,003 | 2,958 | ||||||||||
Total interest expense | 29,995 | 8,497 | 74,238 | 16,577 | ||||||||||
Net interest income | 50,443 | 48,257 | 136,001 | 138,605 | ||||||||||
Provision for credit losses | 5,911 | 142 | 5,552 | 4,001 | ||||||||||
Net interest income after provision for loan | 44,532 | 48,115 | 130,449 | 134,604 | ||||||||||
Non-interest income: | ||||||||||||||
Wealth management revenues | 4,940 | 4,843 | 15,795 | 16,291 | ||||||||||
Insurance commissions | 5,199 | 4,158 | 19,416 | 16,903 | ||||||||||
Service charges | 2,994 | 2,445 | 7,583 | 6,737 | ||||||||||
Net securities gains/(losses) | 3,389 | 79 | 3,337 | 81 | ||||||||||
Mortgage banking revenues | 846 | 355 | 1,328 | 1,125 | ||||||||||
ATM/debit card revenue | 3,766 | 3,101 | 10,114 | 9,213 | ||||||||||
Other | 1,919 | 1,810 | 7,445 | 6,125 | ||||||||||
Total non-interest income | 23,053 | 16,791 | 65,018 | 56,475 | ||||||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 25,422 | 24,877 | 75,037 | 74,984 | ||||||||||
Net occupancy and equipment expense | 6,929 | 5,903 | 18,969 | 18,131 | ||||||||||
Net other real estate owned (income) expense | 902 | 58 | 1,062 | 243 | ||||||||||
785 | 479 | 2,324 | 1,341 | |||||||||||
Amortization of intangible assets | 2,568 | 1,598 | 5,567 | 4,753 | ||||||||||
Stationary and supplies | 335 | 361 | 942 | 997 | ||||||||||
Legal and professional expense | 1,844 | 1,770 | 5,314 | 5,389 | ||||||||||
ATM/debit card expense | 1,751 | 1,243 | 3,990 | 2,991 | ||||||||||
Marketing and donations | 764 | 739 | 2,326 | 2,318 | ||||||||||
Other | 5,796 | 4,521 | 13,184 | 12,342 | ||||||||||
Total non-interest expense | 47,096 | 41,549 | 128,715 | 123,489 | ||||||||||
Income before income taxes | 20,489 | 23,357 | 66,752 | 67,590 | ||||||||||
Income taxes | 5,372 | 5,418 | 15,888 | 15,277 | ||||||||||
Net income | $ | 15,117 | $ | 17,939 | $ | 50,864 | $ | 52,313 | ||||||
Per Share Information | ||||||||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.88 | $ | 2.41 | $ | 2.61 | ||||||
Diluted earnings per common share | 0.68 | 0.88 | 2.40 | 2.60 | ||||||||||
Weighted average shares outstanding | 22,220,438 | 20,454,669 | 21,086,802 | 20,070,687 | ||||||||||
Diluted weighted average shares outstanding | 22,319,334 | 20,535,215 | 21,176,946 | 20,145,435 | ||||||||||
Condensed Consolidated Statements of Income | |||||||||||||||||||||||
(In thousands, except per share data, unaudited) | |||||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Interest and fees on loans | $ | 69,143 | $ | 58,368 | $ | 56,236 | $ | 53,128 | $ | 49,278 | |||||||||||||
Interest on investment securities | 9,284 | 7,193 | 7,127 | 7,285 | 7,302 | ||||||||||||||||||
Interest on federal funds sold & other deposits | 2,011 | 569 | 308 | 296 | 174 | ||||||||||||||||||
Total interest income | 80,438 | 66,130 | 63,671 | 60,709 | 56,754 | ||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Interest on deposits | 22,047 | 16,580 | 12,767 | 9,227 | 4,915 | ||||||||||||||||||
Interest on securities sold under agreements to repurchase | 1,625 | 1,723 | 1,463 | 1,163 | 428 | ||||||||||||||||||
Interest on other borrowings | 4,749 | 4,084 | 4,883 | 3,345 | 1,927 | ||||||||||||||||||
Interest on jr. subordinated debentures | 545 | 390 | 379 | 315 | 241 | ||||||||||||||||||
Interest on subordinated debt | 1,029 | 986 | 988 | 987 | 986 | ||||||||||||||||||
Total interest expense | 29,995 | 23,763 | 20,480 | 15,037 | 8,497 | ||||||||||||||||||
Net interest income | 50,443 | 42,367 | 43,191 | 45,672 | 48,257 | ||||||||||||||||||
Provision for credit losses | 5,911 | 458 | (817 | ) | 805 | 142 | |||||||||||||||||
Net interest income after provision for loan | 44,532 | 41,909 | 44,008 | 44,867 | 48,115 | ||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||
Wealth management revenues | 4,940 | 5,341 | 5,514 | 6,201 | 4,843 | ||||||||||||||||||
Insurance commissions | 5,199 | 5,737 | 8,480 | 4,719 | 4,158 | ||||||||||||||||||
Service charges | 2,994 | 2,386 | 2,203 | 2,375 | 2,445 | ||||||||||||||||||
Securities gains, net | 3,389 | (6 | ) | (46 | ) | (48 | ) | 79 | |||||||||||||||
Mortgage banking revenues | 846 | 332 | 150 | 65 | 355 | ||||||||||||||||||
ATM/debit card revenue | 3,766 | 3,265 | 3,083 | 3,209 | 3,101 | ||||||||||||||||||
Other | 1,919 | 2,431 | 3,095 | 1,686 | 1,810 | ||||||||||||||||||
Total non-interest income | 23,053 | 19,486 | 22,479 | 18,207 | 16,791 | ||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||
Salaries and employee benefits | 25,422 | 23,544 | 26,071 | 23,610 | 24,877 | ||||||||||||||||||
Net occupancy and equipment expense | 6,929 | 6,035 | 6,005 | 6,126 | 5,903 | ||||||||||||||||||
Net other real estate owned (income) expense | 902 | 27 | 133 | 87 | 58 | ||||||||||||||||||
785 | 1,076 | 463 | 464 | 479 | |||||||||||||||||||
Amortization of intangible assets | 2,568 | 1,477 | 1,522 | 1,537 | 1,598 | ||||||||||||||||||
Stationary and supplies | 335 | 315 | 292 | 298 | 361 | ||||||||||||||||||
Legal and professional expense | 1,844 | 1,780 | 1,690 | 1,607 | 1,770 | ||||||||||||||||||
ATM/debit card expense | 1,751 | 1,016 | 1,223 | 1,309 | 1,243 | ||||||||||||||||||
Marketing and donations | 764 | 908 | 654 | 681 | 739 | ||||||||||||||||||
Other | 5,796 | 3,864 | 3,524 | 3,653 | 4,521 | ||||||||||||||||||
Total non-interest expense | 47,096 | 40,042 | 41,577 | 39,372 | 41,549 | ||||||||||||||||||
Income before income taxes | 20,489 | 21,353 | 24,910 | 23,702 | 23,357 | ||||||||||||||||||
Income taxes | 5,372 | 4,786 | 5,730 | 3,063 | 5,418 | ||||||||||||||||||
Net income | $ | 15,117 | $ | 16,567 | $ | 19,180 | $ | 20,639 | $ | 17,939 | |||||||||||||
Per Share Information | |||||||||||||||||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.81 | $ | 0.94 | $ | 1.01 | $ | 0.88 | |||||||||||||
Diluted earnings per common share | 0.68 | 0.80 | 0.93 | 1.01 | 0.88 | ||||||||||||||||||
Weighted average shares outstanding | 22,220,438 | 20,528,717 | 20,492,254 | 20,461,046 | 20,454,669 | ||||||||||||||||||
Diluted weighted average shares outstanding | 22,319,334 | 20,628,239 | 20,563,972 | 20,535,220 | 20,535,215 | ||||||||||||||||||
Consolidated Financial Highlights and Ratios | ||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
As of and for the Quarter Ended | ||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||||
Loan Portfolio | ||||||||||||||||||||
Construction and land development | $ | 189,206 | $ | 151,574 | $ | 159,157 | $ | 144,264 | $ | 142,801 | ||||||||||
Farm real estate loans | 399,834 | 392,220 | 401,957 | 410,327 | 360,424 | |||||||||||||||
1-4 Family residential properties | 531,699 | 418,932 | 424,545 | 440,180 | 436,625 | |||||||||||||||
Multifamily residential properties | 327,067 | 303,482 | 301,808 | 294,346 | 298,321 | |||||||||||||||
Commercial real estate | 2,392,834 | 2,056,529 | 2,003,647 | 2,030,011 | 1,996,338 | |||||||||||||||
Loans secured by real estate | 3,840,640 | 3,322,737 | 3,291,114 | 3,319,128 | 3,234,509 | |||||||||||||||
Agricultural operating loans | 179,447 | 148,318 | 146,847 | 166,838 | 160,511 | |||||||||||||||
Commercial and industrial loans | 1,242,653 | 1,094,522 | 1,078,021 | 1,082,960 | 1,064,033 | |||||||||||||||
Consumer loans | 99,542 | 80,241 | 88,430 | 97,775 | 100,783 | |||||||||||||||
All other loans | 177,783 | 167,598 | 156,219 | 159,511 | 160,454 | |||||||||||||||
Total loans | 5,540,065 | 4,813,416 | 4,760,631 | 4,826,212 | 4,720,290 | |||||||||||||||
Deposit Portfolio | ||||||||||||||||||||
Non-interest bearing demand deposits | $ | 1,389,022 | $ | 1,171,047 | $ | 1,262,181 | $ | 1,256,514 | $ | 1,334,686 | ||||||||||
Interest bearing demand deposits | 1,940,162 | 1,477,765 | 1,419,791 | 1,389,283 | 1,364,306 | |||||||||||||||
Savings deposits | 734,377 | 602,523 | 639,691 | 636,699 | 657,592 | |||||||||||||||
Money Market | 1,161,957 | 923,259 | 878,452 | 1,267,726 | 1,443,060 | |||||||||||||||
Time deposits | 1,120,806 | 1,044,991 | 830,663 | 706,779 | 683,554 | |||||||||||||||
Total deposits | 6,346,324 | 5,219,585 | 5,030,778 | 5,257,001 | 5,483,198 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing loans | $ | 21,269 | $ | 18,637 | $ | 15,163 | $ | 19,170 | $ | 20,812 | ||||||||||
Non-performing assets | 23,565 | 22,615 | 19,225 | 23,539 | 25,143 | |||||||||||||||
Net charge-offs (recoveries) | 181 | (38 | ) | 53 | 489 | 440 | ||||||||||||||
Allowance for credit losses to non-performing loans | 320.85 | % | 315.07 | % | 383.98 | % | 308.26 | % | 282.42 | % | ||||||||||
Allowance for credit losses to total loans outstanding | 1.23 | % | 1.22 | % | 1.22 | % | 1.22 | % | 1.25 | % | ||||||||||
Nonperforming loans to total loans | 0.38 | % | 0.39 | % | 0.32 | % | 0.40 | % | 0.44 | % | ||||||||||
Nonperforming assets to total assets | 0.30 | % | 0.34 | % | 0.29 | % | 0.35 | % | 0.38 | % | ||||||||||
Special Mention loans | 73,732 | 40,687 | 47,022 | 39,853 | 25,298 | |||||||||||||||
Substandard and Doubtful loans | 30,575 | 28,255 | 29,931 | 34,352 | 37,378 | |||||||||||||||
Common Share Data | ||||||||||||||||||||
Common shares outstanding | 23,830,038 | 20,528,192 | 20,519,717 | 20,452,376 | 20,454,636 | |||||||||||||||
Book value per common share | $ | 30.97 | $ | 32.18 | $ | 32.26 | $ | 30.96 | $ | 29.37 | ||||||||||
Tangible book value per common share (1) | 19.73 | 23.48 | 24.05 | 22.65 | 21.01 | |||||||||||||||
Tangible book value per common share excluding other comprehensive income at period end (1) | 27.24 | 30.87 | 30.77 | 30.06 | 29.21 | |||||||||||||||
Market price of stock | 26.56 | 24.14 | 27.22 | 32.08 | 31.97 | |||||||||||||||
Key Performance Ratios and Metrics | ||||||||||||||||||||
End of period earning assets | $ | 7,007,282 | $ | 6,023,553 | $ | 5,995,674 | $ | 6,063,953 | $ | 5,975,619 | ||||||||||
Average earning assets | 6,593,781 | 6,049,626 | 6,052,264 | 6,000,106 | 6,063,061 | |||||||||||||||
Average rate on average earning assets (tax equivalent) | 4.89 | % | 4.43 | % | 4.32 | % | 4.07 | % | 3.77 | % | ||||||||||
Average rate on cost of funds | 1.83 | % | 1.59 | % | 1.38 | % | 1.00 | % | 0.56 | % | ||||||||||
Net interest margin (tax equivalent) (1) | 3.06 | % | 2.84 | % | 2.94 | % | 3.07 | % | 3.21 | % | ||||||||||
Return on average assets | 0.90 | % | 0.99 | % | 1.15 | % | 1.24 | % | 1.07 | % | ||||||||||
Adjusted return on average assets (1) | 0.94 | % | 1.03 | % | 1.18 | % | 1.25 | % | 1.11 | % | ||||||||||
Return on average common equity | 8.70 | % | 10.07 | % | 12.11 | % | 13.51 | % | 11.18 | % | ||||||||||
Adjusted return on average common equity (1) | 9.82 | % | 10.42 | % | 11.92 | % | 13.60 | % | 11.51 | % | ||||||||||
Efficiency ratio (tax equivalent) (1) | 58.60 | % | 60.37 | % | 59.01 | % | 58.07 | % | 59.64 | % | ||||||||||
Full-time equivalent employees | 1,224 | 995 | 988 | 1,043 | 1,051 | |||||||||||||||
1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure. | ||||||||||||||||||||
Net Interest Margin | |||||||||||
(In thousands, unaudited) | |||||||||||
For the Quarter Ended | |||||||||||
QTD Average | Average | ||||||||||
Balance | Interest | Rate | |||||||||
INTEREST EARNING ASSETS | |||||||||||
Interest bearing deposits | $ | 90,957 | $ | 1,882 | 8.21 | % | |||||
Federal funds sold | 8,561 | 114 | 5.28 | % | |||||||
Certificates of deposits investments | 2,152 | 16 | 2.95 | % | |||||||
Taxable (total less municipals) | 1,004,994 | 7,352 | 2.93 | % | |||||||
Tax-exempt (Municipals) | 287,232 | 2,445 | 3.40 | % | |||||||
Loans (net of unearned income) | 5,199,885 | 69,397 | 5.29 | % | |||||||
Total interest earning assets | 6,593,781 | 81,206 | 4.89 | % | |||||||
NONEARNING ASSETS | |||||||||||
Cash and due from banks | 125,014 | ||||||||||
Premises and equipment | 97,474 | ||||||||||
Other nonearning assets | 524,478 | ||||||||||
Allowance for loan losses | (64,636 | ) | |||||||||
Total assets | $ | 7,276,111 | |||||||||
INTEREST BEARING LIABILITIES | |||||||||||
Demand deposits | $ | 2,646,134 | $ | 12,740 | 1.91 | % | |||||
Savings deposits | 669,930 | 190 | 0.11 | % | |||||||
Time deposits | 1,081,978 | 9,117 | 3.34 | % | |||||||
Total interest bearing deposits | 4,398,042 | 22,047 | 1.99 | % | |||||||
Repurchase agreements | 212,644 | 1,625 | 3.03 | % | |||||||
FHLB advances | 486,738 | 4,761 | 3.88 | % | |||||||
Federal funds purchased | - | - | 0.00 | % | |||||||
Subordinated debt | 105,332 | 1,028 | 3.87 | % | |||||||
Jr. subordinated debentures | 19,258 | 545 | 11.23 | % | |||||||
Other debt | - | (12 | ) | 0.00 | % | ||||||
Total borrowings | 823,972 | 7,947 | 3.83 | % | |||||||
Total interest bearing liabilities | 5,222,014 | 29,994 | 2.28 | % | |||||||
NONINTEREST BEARING LIABILITIES | |||||||||||
Demand deposits | 1,293,422 | Average cost of funds | 1.83 | % | |||||||
Other liabilities | 65,265 | ||||||||||
Stockholders’ equity | 695,410 | ||||||||||
Total liabilities & stockholders’ equity | $ | 7,276,111 | |||||||||
Net Interest Earnings / Spread | $ | 51,212 | 2.61 | % | |||||||
Impact of Non-Interest Bearing Funds | 0.45 | % | |||||||||
Tax effected yield on interest earning assets | 3.06 | % | |||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
(In thousands, unaudited) | |||||||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Net interest income as reported | $ | 50,443 | $ | 42,367 | $ | 43,191 | $ | 45,672 | $ | 48,257 | |||||||||||||
Net interest income, (tax equivalent) | 51,212 | 43,109 | 43,947 | 46,464 | 49,060 | ||||||||||||||||||
Average earning assets | 6,593,781 | 6,049,626 | 6,052,264 | 6,000,106 | 6,063,061 | ||||||||||||||||||
Net interest margin (tax equivalent) | 3.06 | % | 2.84 | % | 2.94 | % | 3.07 | % | 3.21 | % | |||||||||||||
Common stockholder’s equity | $ | 737,948 | $ | 660,687 | $ | 661,865 | $ | 633,155 | $ | 600,715 | |||||||||||||
267,793 | 178,615 | 168,373 | 169,897 | 170,897 | |||||||||||||||||||
Common shares outstanding | 23,830 | 20,528 | 20,520 | 20,452 | 20,455 | ||||||||||||||||||
Tangible Book Value per common share | $ | 19.73 | $ | 23.48 | $ | 24.05 | $ | 22.65 | $ | 21.01 | |||||||||||||
Accumulated other comprehensive loss (AOCI) | (178,903 | ) | (151,566 | ) | (137,901 | ) | (151,507 | ) | (167,663 | ) | |||||||||||||
Adjusted tangible book value per commone share | $ | 27.24 | $ | 30.87 | $ | 30.77 | $ | 30.06 | $ | 29.21 | |||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
(In thousands, except per share data, unaudited) | |||||||||||||||||||||||
As of and for the Quarter Ended | |||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Adjusted earnings Reconciliation | |||||||||||||||||||||||
Net Income - GAAP | $ | 15,117 | $ | 16,567 | $ | 19,180 | $ | 20,639 | $ | 17,939 | |||||||||||||
Adjustments (post-tax): (1) | |||||||||||||||||||||||
Acquisition ACL on non-PCD assets in provision expense | 2,985 | - | - | - | - | ||||||||||||||||||
Nonrecurring severance expense | - | - | 416 | - | - | ||||||||||||||||||
Net (gain)/loss on securities sales | (2,677 | ) | - | - | - | - | |||||||||||||||||
Integration and acquisition expenses | 1,653 | 589 | 135 | 131 | 524 | ||||||||||||||||||
Total non-recurring adjustments (non-GAAP) | $ | 1,962 | $ | 589 | $ | 551 | $ | 131 | $ | 524 | |||||||||||||
Adjusted earnings - non-GAAP | $ | 17,079 | $ | 17,156 | $ | 19,731 | $ | 20,770 | $ | 18,463 | |||||||||||||
Adjusted diluted earnings per share (non-GAAP) | $ | 0.77 | $ | 0.83 | $ | 0.96 | $ | 1.01 | $ | 0.90 | |||||||||||||
Adjusted return on average assets - non-GAAP | 0.94 | % | 1.03 | % | 1.18 | % | 1.25 | % | 1.11 | % | |||||||||||||
Adjusted return on average common equity - non-GAAP | 9.82 | % | 10.42 | % | 11.92 | % | 13.60 | % | 11.51 | % | |||||||||||||
Efficiency Ratio Reconciliation | |||||||||||||||||||||||
Noninterest expense - GAAP | $ | 47,096 | $ | 40,042 | $ | 41,577 | $ | 39,372 | $ | 41,549 | |||||||||||||
Other real estate owned property income (expense) | (902 | ) | (27 | ) | (133 | ) | (87 | ) | (58 | ) | |||||||||||||
Amortization of intangibles | (2,568 | ) | (1,477 | ) | (1,522 | ) | (1,537 | ) | (1,598 | ) | |||||||||||||
Nonrecurring severance expense | - | - | (527 | ) | - | - | |||||||||||||||||
integration and acquisition expenses | (2,093 | ) | (745 | ) | (171 | ) | (166 | ) | (663 | ) | |||||||||||||
Adjusted noninterest expense (non-GAAP) | $ | 41,533 | $ | 37,793 | $ | 39,224 | $ | 37,582 | $ | 39,230 | |||||||||||||
Net interest income -GAAP | $ | 50,443 | $ | 42,367 | $ | 43,192 | $ | 45,672 | $ | 48,257 | |||||||||||||
Effect of tax-exempt income (1) | 769 | 742 | 755 | 792 | 803 | ||||||||||||||||||
Adjusted net interest income (non-GAAP) | $ | 51,212 | $ | 43,109 | $ | 43,947 | $ | 46,464 | $ | 49,060 | |||||||||||||
Noninterest income - GAAP | $ | 23,053 | $ | 19,486 | $ | 22,479 | $ | 18,207 | $ | 16,791 | |||||||||||||
Net (gain)/loss on securities sales | (3,389 | ) | 6 | 46 | 48 | (79 | ) | ||||||||||||||||
Adjusted noninterest income (non-GAAP) | $ | 19,664 | $ | 19,492 | $ | 22,525 | $ | 18,255 | $ | 16,712 | |||||||||||||
Adjusted total revenue (non-GAAP) | $ | 70,876 | $ | 62,601 | $ | 66,472 | $ | 64,719 | $ | 65,772 | |||||||||||||
Efficiency ratio (non-GAAP) | 58.60 | % | 60.37 | % | 59.01 | % | 58.07 | % | 59.64 | % | |||||||||||||
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. |
Source:
2023 GlobeNewswire, Inc., source