For the quarter | For the year | Adjusted (1) | ||||||||||||||||||||||||||
4Q23 | 3Q23 | 4Q22 | 2023 | 2022 | 4Q22 - QTD | 4Q22 -YTD | ||||||||||||||||||||||
Net income ( | $ | 33,121 | $ | 36,087 | $ | 16,721 | $ | 142,048 | $ | 71,274 | $ | 34,546 | $ | 99,577 | ||||||||||||||
Earnings per share - diluted | $ | 0.87 | $ | 0.94 | $ | 0.44 | $ | 3.72 | $ | 2.18 | $ | 0.91 | $ | 3.05 | ||||||||||||||
Return on average tangible assets(2) | 1.44 | % | 1.58 | % | 0.77 | % | 1.57 | % | 0.95 | % | 1.55 | % | 1.32 | % | ||||||||||||||
Return on average tangible common equity(2) | 16.56 | % | 18.38 | % | 9.17 | % | 18.23 | % | 9.91 | % | 18.37 | % | 13.75 | % |
(1 | ) | See non-GAAP reconciliations below. | |
(2 | ) | Quarterly ratios are annualized. | |
In announcing these results, Chief Executive Officer
Fourth Quarter 2023 Results
(All comparisons refer to the third quarter of 2023, except as noted)
Net income totaled
Net Interest Income
Fully taxable equivalent net interest income increased
Loans
Total loans increased
Asset Quality and Provision for Credit Losses
The Company recorded
Deposits
We maintain a granular and well diversified deposit base with no exposure to venture capital or crypto deposits. Average total deposits increased
Non-Interest Income
Non-interest income decreased
Non-Interest Expense
Non-interest expense increased
Income tax expense totaled
Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The Tier 1 leverage ratio totaled 9.74% at
Common book value per share increased
Year-Over-Year Review
(All comparisons refer to the full year 2022, except as noted)
Net income increased
Prior year included
Fully taxable equivalent net interest income totaled
Loans outstanding totaled
The Company recorded
Average total deposits increased
Non-interest income totaled
Non-interest expense totaled
Income tax expense totaled
Conference Call
Management will host a conference call to review the results at
About
For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “non-interest expense adjusted for other intangible assets amortization and acquisition-related expenses,” “non-interest expense adjusted for acquisition-related expenses,” “efficiency ratio adjusted for other intangible assets amortization and acquisition-related expenses,” “adjusted net income,” “adjusted earnings per share – diluted,” “net income adjusted for the impact of other intangible assets amortization expense and acquisition-related expenses, after tax,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “adjusted return on average tangible assets,” “adjusted return on average tangible common equity,” “pre-provision net revenue,” “pre-provision net revenue adjusted for acquisition-related expenses,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with,
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. 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 non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the
Contact:
Media:
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)
For the three months ended | For the years ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Total interest and dividend income | $ | 134,703 | $ | 126,110 | $ | 103,958 | $ | 495,415 | $ | 284,688 | ||||
Total interest expense | 45,202 | 38,333 | 8,892 | 133,464 | 17,853 | |||||||||
Net interest income | 89,501 | 87,777 | 95,066 | 361,951 | 266,835 | |||||||||
Taxable equivalent adjustment | 1,667 | 1,575 | 1,454 | 6,099 | 5,512 | |||||||||
Net interest income FTE(1) | 91,168 | 89,352 | 96,520 | 368,050 | 272,347 | |||||||||
Provision expense for credit losses | 4,570 | 1,125 | 21,869 | 8,295 | 36,729 | |||||||||
Net interest income after provision for credit losses FTE(1) | 86,598 | 88,227 | 74,651 | 359,755 | 235,618 | |||||||||
Non-interest income: | ||||||||||||||
Service charges | 4,831 | 4,849 | 4,365 | 18,225 | 16,357 | |||||||||
Bank card fees | 4,915 | 4,993 | 4,954 | 19,636 | 18,299 | |||||||||
Mortgage banking income | 2,020 | 4,688 | 2,686 | 13,634 | 23,774 | |||||||||
Other non-interest income | 4,298 | 4,835 | 2,133 | 12,422 | 8,882 | |||||||||
Total non-interest income | 16,064 | 19,365 | 14,138 | 63,917 | 67,312 | |||||||||
Non-interest expense: | ||||||||||||||
Salaries and benefits | 34,470 | 35,027 | 36,319 | 137,701 | 124,971 | |||||||||
Occupancy and equipment | 10,186 | 9,167 | 10,409 | 37,552 | 31,496 | |||||||||
Professional fees | 2,513 | 2,215 | 6,308 | 10,464 | 14,418 | |||||||||
Data processing | 2,853 | 3,546 | 4,924 | 13,110 | 12,657 | |||||||||
Other non-interest expense | 10,065 | 8,640 | 8,339 | 35,758 | 25,354 | |||||||||
Other intangible assets amortization | 2,008 | 2,008 | 1,363 | 7,386 | 2,338 | |||||||||
Total non-interest expense | 62,095 | 60,603 | 67,662 | 241,971 | 211,234 | |||||||||
Income before income taxes FTE(1) | 40,567 | 46,989 | 21,127 | 181,701 | 91,696 | |||||||||
Taxable equivalent adjustment | 1,667 | 1,575 | 1,454 | 6,099 | 5,512 | |||||||||
Income before income taxes | 38,900 | 45,414 | 19,673 | 175,602 | 86,184 | |||||||||
Income tax expense | 5,779 | 9,327 | 2,952 | 33,554 | 14,910 | |||||||||
Net income | $ | 33,121 | $ | 36,087 | $ | 16,721 | $ | 142,048 | $ | 71,274 | ||||
Earnings per share - basic | $ | 0.87 | $ | 0.95 | $ | 0.44 | $ | 3.74 | $ | 2.20 | ||||
Earnings per share - diluted | 0.87 | 0.94 | 0.44 | 3.72 | 2.18 |
(1 | ) | Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented. |
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)
ASSETS | |||||||||||
Cash and cash equivalents | $ | 190,826 | $ | 291,291 | $ | 195,505 | |||||
Investment securities available-for-sale | 628,829 | 620,445 | 706,289 | ||||||||
Investment securities held-to-maturity | 585,052 | 600,501 | 651,527 | ||||||||
Non-marketable securities | 90,477 | 87,817 | 89,049 | ||||||||
Loans | 7,698,758 | 7,478,438 | 7,220,469 | ||||||||
Allowance for credit losses | (97,947 | ) | (93,446 | ) | (89,553 | ) | |||||
Loans, net | 7,600,811 | 7,384,992 | 7,130,916 | ||||||||
Loans held for sale | 18,854 | 19,048 | 22,767 | ||||||||
Other real estate owned | 4,088 | 3,416 | 3,731 | ||||||||
Premises and equipment, net | 162,733 | 153,553 | 136,111 | ||||||||
306,043 | 306,043 | 279,132 | |||||||||
Intangible assets, net | 66,025 | 68,283 | 59,887 | ||||||||
Other assets | 297,326 | 330,894 | 298,329 | ||||||||
Total assets | $ | 9,951,064 | $ | 9,866,283 | $ | 9,573,243 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Liabilities: | |||||||||||
Non-interest bearing demand deposits | $ | 2,361,367 | $ | 2,483,174 | $ | 3,134,716 | |||||
Interest bearing demand deposits | 1,480,042 | 1,358,445 | 913,852 | ||||||||
Savings and money market | 3,367,012 | 3,314,895 | 2,950,658 | ||||||||
Total transaction deposits | 7,208,421 | 7,156,514 | 6,999,226 | ||||||||
Time deposits | 981,970 | 992,494 | 873,400 | ||||||||
Total deposits | 8,190,391 | 8,149,008 | 7,872,626 | ||||||||
Securities sold under agreements to repurchase | 19,627 | 20,273 | 20,214 | ||||||||
Long-term debt | 54,200 | 54,123 | 53,890 | ||||||||
340,000 | 316,770 | 385,000 | |||||||||
Other liabilities | 134,039 | 162,524 | 149,311 | ||||||||
Total liabilities | 8,738,257 | 8,702,698 | 8,481,041 | ||||||||
Shareholders' equity: | |||||||||||
Common stock | 515 | 515 | 515 | ||||||||
Additional paid in capital | 1,162,269 | 1,160,706 | 1,159,508 | ||||||||
Retained earnings | 433,126 | 410,243 | 330,721 | ||||||||
(306,702 | ) | (307,026 | ) | (310,338 | ) | ||||||
Accumulated other comprehensive loss, net of tax | (76,401 | ) | (100,853 | ) | (88,204 | ) | |||||
Total shareholders' equity | 1,212,807 | 1,163,585 | 1,092,202 | ||||||||
Total liabilities and shareholders' equity | $ | 9,951,064 | $ | 9,866,283 | $ | 9,573,243 | |||||
SHARE DATA | |||||||||||
Average basic shares outstanding | 38,013,791 | 37,990,659 | 37,762,853 | ||||||||
Average diluted shares outstanding | 38,162,538 | 38,134,338 | 38,100,155 | ||||||||
Ending shares outstanding | 37,784,851 | 37,739,776 | 37,608,519 | ||||||||
Common book value per share | $ | 32.10 | $ | 30.83 | $ | 29.04 | |||||
Tangible common book value per share(1) (non-GAAP) | 22.77 | 21.43 | 20.63 | ||||||||
Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP) | 24.79 | 24.10 | 22.98 | ||||||||
CAPITAL RATIOS | |||||||||||
Average equity to average assets | 11.97 | % | 11.93 | % | 11.47 | % | |||||
Tangible common equity to tangible assets(1) | 8.96 | % | 8.50 | % | 8.38 | % | |||||
Tier 1 leverage ratio | 9.74 | % | 9.56 | % | 9.29 | % | |||||
Common equity tier 1 risk-based capital ratio | 11.89 | % | 11.61 | % | 10.54 | % | |||||
Tier 1 risk-based capital ratio | 11.89 | % | 11.61 | % | 10.54 | % | |||||
Total risk-based capital ratio | 13.80 | % | 13.49 | % | 12.29 | % |
(1 | ) | Represents a non-GAAP financial measure. See non-GAAP reconciliations below. |
Loan Portfolio
(Dollars in thousands)
Period End Loan Balances by Type
vs. | vs. | |||||||||||||
% Change | % Change | |||||||||||||
Originated: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | $ | 1,825,425 | $ | 1,784,188 | 2.3 | % | $ | 1,841,313 | (0.9 | )% | ||||
Municipal and non-profit | 1,083,457 | 1,012,967 | 7.0 | % | 959,305 | 12.9 | % | |||||||
Owner-occupied commercial real estate | 879,686 | 827,679 | 6.3 | % | 656,361 | 34.0 | % | |||||||
Food and agribusiness | 265,902 | 258,609 | 2.8 | % | 284,714 | (6.6 | )% | |||||||
Total commercial | 4,054,470 | 3,883,443 | 4.4 | % | 3,741,693 | 8.4 | % | |||||||
Commercial real estate non-owner occupied | 1,071,529 | 1,026,133 | 4.4 | % | 841,657 | 27.3 | % | |||||||
Residential real estate | 919,139 | 897,804 | 2.4 | % | 827,030 | 11.1 | % | |||||||
Consumer | 16,686 | 16,700 | (0.1 | )% | 16,986 | (1.8 | )% | |||||||
Total originated | 6,061,824 | 5,824,080 | 4.1 | % | 5,427,366 | 11.7 | % | |||||||
Acquired: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | 141,484 | 156,012 | (9.3 | )% | 183,522 | (22.9 | )% | |||||||
Municipal and non-profit | 299 | 305 | (2.0 | )% | 321 | (6.9 | )% | |||||||
Owner-occupied commercial real estate | 244,087 | 247,701 | (1.5 | )% | 256,979 | (5.0 | )% | |||||||
Food and agribusiness | 58,695 | 61,551 | (4.6 | )% | 69,265 | (15.3 | )% | |||||||
Total commercial | 444,565 | 465,569 | (4.5 | )% | 510,087 | (12.8 | )% | |||||||
Commercial real estate non-owner occupied | 785,221 | 787,926 | (0.3 | )% | 854,393 | (8.1 | )% | |||||||
Residential real estate | 404,648 | 398,187 | 1.6 | % | 424,251 | (4.6 | )% | |||||||
Consumer | 2,500 | 2,676 | (6.6 | )% | 4,372 | (42.8 | )% | |||||||
Total acquired | 1,636,934 | 1,654,358 | (1.1 | )% | 1,793,103 | (8.7 | )% | |||||||
Total loans | $ | 7,698,758 | $ | 7,478,438 | 2.9 | % | $ | 7,220,469 | 6.6 | % | ||||
Loan Fundings(1)
Fourth quarter | Third quarter | Second quarter | First quarter | Fourth quarter | |||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 135,954 | $ | 89,297 | $ | 111,717 | $ | 107,013 | $ | 177,693 | |||||
Municipal and non-profit | 79,650 | 18,657 | 39,331 | 22,526 | 20,393 | ||||||||||
Owner occupied commercial real estate | 75,631 | 67,322 | 62,649 | 33,912 | 40,912 | ||||||||||
Food and agribusiness | 10,646 | 16,191 | 6,017 | (6,564 | ) | 28,518 | |||||||||
Total commercial | 301,881 | 191,467 | 219,714 | 156,887 | 267,516 | ||||||||||
Commercial real estate non-owner occupied | 107,738 | 88,434 | 99,984 | 185,875 | 133,271 | ||||||||||
Residential real estate | 48,925 | 42,514 | 40,814 | 49,406 | 95,067 | ||||||||||
Consumer | 1,849 | 1,689 | 1,777 | 1,717 | 1,396 | ||||||||||
Total | $ | 460,393 | $ | 324,104 | $ | 362,289 | $ | 393,885 | $ | 497,250 |
(1 | ) | Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were |
Summary of Net Interest Margin
(Dollars in thousands)
For the three months ended | For the three months ended | For the three months ended | |||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||
balance | Interest | rate | balance | Interest | rate | balance | Interest | rate | |||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||
Originated loans FTE(1)(2) | $ | 5,985,610 | $ | 102,504 | 6.79 | % | $ | 5,803,157 | $ | 92,813 | 6.35 | % | $ | 5,269,227 | $ | 70,536 | 5.31 | % | |||||||||||||||
Acquired loans | 1,646,696 | 25,407 | 6.12 | % | 1,671,595 | 26,115 | 6.20 | % | 1,790,476 | 26,508 | 5.87 | % | |||||||||||||||||||||
Loans held for sale | 16,599 | 321 | 7.67 | % | 22,154 | 383 | 6.86 | % | 24,381 | 375 | 6.10 | % | |||||||||||||||||||||
Investment securities available-for-sale | 739,471 | 3,715 | 2.01 | % | 761,892 | 3,783 | 1.99 | % | 841,762 | 4,187 | 1.99 | % | |||||||||||||||||||||
Investment securities held-to-maturity | 594,149 | 2,596 | 1.75 | % | 611,712 | 2,685 | 1.76 | % | 661,992 | 2,818 | 1.70 | % | |||||||||||||||||||||
Other securities | 40,355 | 741 | 7.34 | % | 39,115 | 701 | 7.17 | % | 26,203 | 402 | 6.14 | % | |||||||||||||||||||||
Interest earning deposits | 125,097 | 1,086 | 3.44 | % | 130,239 | 1,205 | 3.67 | % | 115,441 | 586 | 2.01 | % | |||||||||||||||||||||
Total interest earning assets FTE(2) | $ | 9,147,977 | $ | 136,370 | 5.91 | % | $ | 9,039,864 | $ | 127,685 | 5.60 | % | $ | 8,729,482 | $ | 105,412 | 4.79 | % | |||||||||||||||
Cash and due from banks | $ | 105,323 | $ | 104,308 | $ | 126,107 | |||||||||||||||||||||||||||
Other assets | 730,220 | 737,568 | 673,679 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (94,466 | ) | (92,831 | ) | (85,638 | ) | |||||||||||||||||||||||||||
Total assets | $ | 9,889,054 | $ | 9,788,909 | $ | 9,443,630 | |||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 4,751,563 | $ | 32,887 | 2.75 | % | $ | 4,535,183 | $ | 27,211 | 2.38 | % | $ | 3,946,573 | $ | 4,587 | 0.46 | % | |||||||||||||||
Time deposits | 986,513 | 6,876 | 2.77 | % | 992,755 | 6,212 | 2.48 | % | 892,122 | 2,048 | 0.91 | % | |||||||||||||||||||||
Securities sold under agreements to repurchase | 17,812 | 5 | 0.11 | % | 19,288 | 6 | 0.12 | % | 18,515 | 23 | 0.49 | % | |||||||||||||||||||||
Long-term debt | 54,151 | 518 | 3.80 | % | 54,074 | 519 | 3.81 | % | 53,530 | 539 | 3.99 | % | |||||||||||||||||||||
348,775 | 4,916 | 5.59 | % | 316,723 | 4,385 | 5.49 | % | 162,146 | 1,695 | 4.15 | % | ||||||||||||||||||||||
Total interest bearing liabilities | $ | 6,158,814 | $ | 45,202 | 2.91 | % | $ | 5,918,023 | $ | 38,333 | 2.57 | % | $ | 5,072,886 | $ | 8,892 | 0.70 | % | |||||||||||||||
Demand deposits | $ | 2,390,457 | $ | 2,553,619 | $ | 3,142,296 | |||||||||||||||||||||||||||
Other liabilities | 155,619 | 149,068 | 145,608 | ||||||||||||||||||||||||||||||
Total liabilities | 8,704,890 | 8,620,710 | 8,360,790 | ||||||||||||||||||||||||||||||
Shareholders' equity | 1,184,164 | 1,168,199 | 1,082,840 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,889,054 | $ | 9,788,909 | $ | 9,443,630 | |||||||||||||||||||||||||||
Net interest income FTE(2) | $ | 91,168 | $ | 89,352 | $ | 96,520 | |||||||||||||||||||||||||||
Interest rate spread FTE(2) | 3.00 | % | 3.03 | % | 4.09 | % | |||||||||||||||||||||||||||
Net interest earning assets | $ | 2,989,163 | $ | 3,121,841 | $ | 3,656,596 | |||||||||||||||||||||||||||
Net interest margin FTE(2) | 3.95 | % | 3.92 | % | 4.39 | % | |||||||||||||||||||||||||||
Average transaction deposits | $ | 7,142,020 | $ | 7,088,802 | $ | 7,088,869 | |||||||||||||||||||||||||||
Average total deposits | 8,128,533 | 8,081,557 | 7,980,991 | ||||||||||||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 148.53 | % | 152.75 | % | 172.08 | % |
(1 | ) | Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. | |
(2 | ) | Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are |
Summary of Net Interest Margin
(Dollars in thousands)
For the year ended | For the year ended | ||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||
balance | Interest | rate | balance | Interest | rate | ||||||||||||||
Interest earning assets: | |||||||||||||||||||
Originated loans FTE(1)(2) | $ | 5,739,310 | $ | 361,032 | 6.29 | % | $ | 4,767,713 | $ | 218,561 | 4.58 | % | |||||||
Acquired loans | 1,700,419 | 104,933 | 6.17 | % | 594,222 | 40,060 | 6.74 | % | |||||||||||
Loans held for sale | 21,756 | 1,510 | 6.94 | % | 58,788 | 2,563 | 4.36 | % | |||||||||||
Investment securities available-for-sale | 774,337 | 15,370 | 1.98 | % | 839,872 | 15,091 | 1.80 | % | |||||||||||
Investment securities held-to-maturity | 620,595 | 10,960 | 1.77 | % | 604,423 | 9,109 | 1.51 | % | |||||||||||
Other securities | 44,936 | 3,254 | 7.24 | % | 17,598 | 1,034 | 5.88 | % | |||||||||||
Interest earning deposits | 121,758 | 4,455 | 3.66 | % | 426,137 | 3,782 | 0.89 | % | |||||||||||
Total interest earning assets FTE(2) | $ | 9,023,111 | $ | 501,514 | 5.56 | % | $ | 7,308,753 | $ | 290,200 | 3.97 | % | |||||||
Cash and due from banks | $ | 109,496 | $ | 90,657 | |||||||||||||||
Other assets | 725,797 | 490,206 | |||||||||||||||||
Allowance for credit losses | (91,956 | ) | (59,824 | ) | |||||||||||||||
Total assets | $ | 9,766,448 | $ | 7,829,792 | |||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 4,337,231 | $ | 87,957 | 2.03 | % | $ | 3,235,834 | $ | 9,347 | 0.29 | % | |||||||
Time deposits | 970,983 | 21,421 | 2.21 | % | 826,293 | 5,249 | 0.64 | % | |||||||||||
Securities sold under agreements to repurchase | 19,346 | 22 | 0.11 | % | 21,298 | 43 | 0.20 | % | |||||||||||
Long-term debt | 54,036 | 2,073 | 3.84 | % | 43,048 | 1,519 | 3.53 | % | |||||||||||
423,783 | 21,991 | 5.19 | % | 40,870 | 1,695 | 4.15 | % | ||||||||||||
Total interest bearing liabilities | $ | 5,805,379 | $ | 133,464 | 2.30 | % | $ | 4,167,343 | $ | 17,853 | 0.43 | % | |||||||
Demand deposits | $ | 2,660,525 | $ | 2,652,561 | |||||||||||||||
Other liabilities | 144,767 | 105,507 | |||||||||||||||||
Total liabilities | 8,610,671 | 6,925,411 | |||||||||||||||||
Shareholders' equity | 1,155,777 | 904,381 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,766,448 | $ | 7,829,792 | |||||||||||||||
Net interest income FTE(2) | $ | 368,050 | $ | 272,347 | |||||||||||||||
Interest rate spread FTE(2) | 3.26 | % | 3.54 | % | |||||||||||||||
Net interest earning assets | $ | 3,217,732 | $ | 3,141,410 | |||||||||||||||
Net interest margin FTE(2) | 4.08 | % | 3.73 | % | |||||||||||||||
Average transaction deposits | $ | 6,997,756 | $ | 5,888,395 | |||||||||||||||
Average total deposits | 7,968,739 | 6,714,688 | |||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 155.43 | % | 175.38 | % |
(1 | ) | Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. | |
(2 | ) | Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are |
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)
Allowance for Credit Losses Analysis
As of and for the three months ended | |||||||||||
Beginning allowance for credit losses | $ | 93,446 | $ | 92,581 | $ | 65,623 | |||||
Day 1 CECL provision expense | — | — | 16,027 | ||||||||
PCD allowance for credit loss at acquisition | — | — | 3,764 | ||||||||
Charge-offs | (357 | ) | (540 | ) | (849 | ) | |||||
Recoveries | 58 | 280 | 129 | ||||||||
Provision expense for credit losses | 4,800 | 1,125 | 4,859 | ||||||||
Ending allowance for credit losses ("ACL") | $ | 97,947 | $ | 93,446 | $ | 89,553 | |||||
Ratio of annualized net charge-offs to average total loans during the period | 0.02 | % | 0.01 | % | 0.04 | % | |||||
Ratio of ACL to total loans outstanding at period end | 1.27 | % | 1.25 | % | 1.24 | % | |||||
Ratio of ACL to total non-performing loans at period end | 346.99 | % | 281.36 | % | 542.35 | % | |||||
Total loans | $ | 7,698,758 | $ | 7,478,438 | $ | 7,220,469 | |||||
Average total loans during the period | 7,594,725 | 7,443,869 | 7,029,021 | ||||||||
Total non-performing loans | 28,228 | 33,212 | 16,512 | ||||||||
Past Due and Non-accrual Loans
Loans 30-89 days past due and still accruing interest | $ | 12,232 | $ | 8,144 | $ | 2,986 | |||||
Loans 90 days past due and still accruing interest | 591 | 154 | 95 | ||||||||
Non-accrual loans | 28,228 | 33,212 | 16,512 | ||||||||
Total past due and non-accrual loans | $ | 41,051 | $ | 41,510 | $ | 19,593 | |||||
Total 90 days past due and still accruing interest and non-accrual loans to total loans | 0.37 | % | 0.45 | % | 0.23 | % | |||||
Asset Quality Data
Non-performing loans | $ | 28,228 | $ | 33,212 | $ | 16,512 | |||||
OREO | 4,088 | 3,416 | 3,731 | ||||||||
Total non-performing assets | $ | 32,316 | $ | 36,628 | $ | 20,243 | |||||
Accruing modified loans | $ | 15,148 | $ | 6,059 | $ | 4,654 | |||||
Total non-performing loans to total loans | 0.37 | % | 0.44 | % | 0.23 | % | |||||
Total non-performing assets to total loans and OREO | 0.42 | % | 0.49 | % | 0.28 | % | |||||
Key Metrics(1)
As of and for the three months ended | As of and for the years ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Return on average assets | 1.33 | % | 1.46 | % | 0.70 | % | 1.45 | % | 0.91 | % | |||||||||
Return on average tangible assets(2) | 1.44 | % | 1.58 | % | 0.77 | % | 1.57 | % | 0.95 | % | |||||||||
Return on average tangible assets, adjusted(2) | 1.44 | % | 1.58 | % | 1.55 | % | 1.57 | % | 1.32 | % | |||||||||
Return on average equity | 11.10 | % | 12.26 | % | 6.13 | % | 12.29 | % | 7.88 | % | |||||||||
Return on average tangible common equity(2) | 16.56 | % | 18.38 | % | 9.17 | % | 18.23 | % | 9.91 | % | |||||||||
Return on average tangible common equity, adjusted(2) | 16.56 | % | 18.38 | % | 18.37 | % | 18.23 | % | 13.75 | % | |||||||||
Loan to deposit ratio (end of period) | 94.00 | % | 91.77 | % | 91.72 | % | 94.00 | % | 91.72 | % | |||||||||
Non-interest bearing deposits to total deposits (end of period) | 28.83 | % | 30.47 | % | 39.82 | % | 28.83 | % | 39.82 | % | |||||||||
Net interest margin(3) | 3.88 | % | 3.85 | % | 4.32 | % | 4.01 | % | 3.65 | % | |||||||||
Net interest margin FTE(2)(3) | 3.95 | % | 3.92 | % | 4.39 | % | 4.08 | % | 3.73 | % | |||||||||
Interest rate spread FTE(2)(4) | 3.00 | % | 3.03 | % | 4.09 | % | 3.26 | % | 3.54 | % | |||||||||
Yield on earning assets(5) | 5.84 | % | 5.53 | % | 4.72 | % | 5.49 | % | 3.90 | % | |||||||||
Yield on earning assets FTE(2)(5) | 5.91 | % | 5.60 | % | 4.79 | % | 5.56 | % | 3.97 | % | |||||||||
Cost of interest bearing liabilities | 2.91 | % | 2.57 | % | 0.70 | % | 2.30 | % | 0.43 | % | |||||||||
Cost of deposits | 1.94 | % | 1.64 | % | 0.33 | % | 1.37 | % | 0.22 | % | |||||||||
Non-interest income to total revenue FTE(2) | 14.98 | % | 17.81 | % | 12.78 | % | 14.80 | % | 19.82 | % | |||||||||
Non-interest expense to average assets | 2.49 | % | 2.46 | % | 2.84 | % | 2.48 | % | 2.70 | % | |||||||||
Efficiency ratio | 58.82 | % | 56.56 | % | 61.96 | % | 56.82 | % | 63.22 | % | |||||||||
Efficiency ratio excluding other intangible assets amortization FTE(2) | 56.03 | % | 53.90 | % | 53.76 | % | 54.31 | % | 57.07 | % | |||||||||
Pre-provision net revenue | $ | 43,470 | $ | 46,539 | $ | 41,542 | $ | 183,897 | $ | 122,913 | |||||||||
Pre-provision net revenue FTE(2) | 45,137 | 48,114 | 42,996 | 189,996 | 128,425 | ||||||||||||||
Pre-provision net revenue FTE, adjusted(2) | 45,137 | 48,114 | 49,807 | 189,996 | 143,492 | ||||||||||||||
Total Loans Asset Quality Data(6)(7)(8) | |||||||||||||||||||
Non-performing loans to total loans | 0.37 | % | 0.44 | % | 0.23 | % | 0.37 | % | 0.23 | % | |||||||||
Non-performing assets to total loans and OREO | 0.42 | % | 0.49 | % | 0.28 | % | 0.42 | % | 0.28 | % | |||||||||
Allowance for credit losses to total loans | 1.27 | % | 1.25 | % | 1.24 | % | 1.27 | % | 1.24 | % | |||||||||
Allowance for credit losses to non-performing loans | 346.99 | % | 281.36 | % | 542.35 | % | 346.99 | % | 542.35 | % | |||||||||
Net charge-offs to average loans | 0.02 | % | 0.01 | % | 0.04 | % | 0.02 | % | 0.03 | % |
(1 | ) | Quarterly ratios are annualized. | |
(2 | ) | Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below. | |
(3 | ) | Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets. | |
(4 | ) | Interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities. | |
(5 | ) | Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets. | |
(6 | ) | Non-performing loans consist of non-accruing loans and modified loans on non-accrual. | |
(7 | ) | Non-performing assets include non-performing loans and other real estate owned. | |
(8 | ) | Total loans are net of unearned discounts and fees. | |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)
Tangible Common Book Value Ratios
Total shareholders' equity | $ | 1,212,807 | $ | 1,163,585 | $ | 1,092,202 | ||||||
Less: goodwill and other intangible assets, net | (364,716 | ) | (366,724 | ) | (327,191 | ) | ||||||
Add: deferred tax liability related to goodwill | 12,208 | 11,876 | 10,984 | |||||||||
Tangible common equity (non-GAAP) | $ | 860,299 | $ | 808,737 | $ | 775,995 | ||||||
Total assets | $ | 9,951,064 | $ | 9,866,283 | $ | 9,573,243 | ||||||
Less: goodwill and other intangible assets, net | (364,716 | ) | (366,724 | ) | (327,191 | ) | ||||||
Add: deferred tax liability related to goodwill | 12,208 | 11,876 | 10,984 | |||||||||
Tangible assets (non-GAAP) | $ | 9,598,556 | $ | 9,511,435 | $ | 9,257,036 | ||||||
Tangible common equity to tangible assets calculations: | ||||||||||||
Total shareholders' equity to total assets | 12.19 | % | 11.79 | % | 11.41 | % | ||||||
Less: impact of goodwill and other intangible assets, net | (3.23 | )% | (3.29 | )% | (3.03 | )% | ||||||
Tangible common equity to tangible assets (non-GAAP) | 8.96 | % | 8.50 | % | 8.38 | % | ||||||
Tangible common book value per share calculations: | ||||||||||||
Tangible common equity (non-GAAP) | $ | 860,299 | $ | 808,737 | $ | 775,995 | ||||||
Divided by: ending shares outstanding | 37,784,851 | 37,739,776 | 37,608,519 | |||||||||
Tangible common book value per share (non-GAAP) | $ | 22.77 | $ | 21.43 | $ | 20.63 | ||||||
Tangible common book value per share, excluding accumulated other comprehensive loss calculations: | ||||||||||||
Tangible common equity (non-GAAP) | $ | 860,299 | $ | 808,737 | $ | 775,995 | ||||||
Accumulated other comprehensive loss, net of tax | 76,401 | 100,853 | 88,204 | |||||||||
Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP) | 936,700 | 909,590 | 864,199 | |||||||||
Divided by: ending shares outstanding | 37,784,851 | 37,739,776 | 37,608,519 | |||||||||
Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP) | $ | 24.79 | $ | 24.10 | $ | 22.98 |
(Dollars in thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average Tangible Equity
As of and for the three months ended | As of and for the years ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Net income | $ | 33,121 | $ | 36,087 | $ | 16,721 | $ | 142,048 | $ | 71,274 | ||||||||||
Add: impact of other intangible assets amortization expense, after tax | 1,541 | 1,541 | 1,049 | 5,668 | 1,799 | |||||||||||||||
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP) | $ | 34,662 | $ | 37,628 | $ | 17,770 | $ | 147,716 | $ | 73,073 | ||||||||||
Net income excluding the impact of other intangible assets amortization expense, after tax | $ | 34,662 | $ | 37,628 | $ | 17,770 | $ | 147,716 | $ | 73,073 | ||||||||||
Add: acquisition-related adjustments, after tax (non-GAAP)(1) | — | — | 17,825 | — | 28,303 | |||||||||||||||
Net income adjusted for the impact of other intangible assets amortization expense and acquisition-related expenses, after tax (non-GAAP)(1) | $ | 34,662 | $ | 37,628 | $ | 35,595 | $ | 147,716 | $ | 101,376 | ||||||||||
Average assets | $ | 9,889,054 | $ | 9,788,909 | $ | 9,443,630 | $ | 9,766,448 | $ | 7,829,792 | ||||||||||
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill | (353,712 | ) | (356,083 | ) | (314,017 | ) | (345,321 | ) | (166,857 | ) | ||||||||||
Average tangible assets (non-GAAP) | $ | 9,535,342 | $ | 9,432,826 | $ | 9,129,613 | $ | 9,421,127 | $ | 7,662,935 | ||||||||||
Average shareholders' equity | $ | 1,184,164 | $ | 1,168,199 | $ | 1,082,840 | $ | 1,155,777 | $ | 904,381 | ||||||||||
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill | (353,712 | ) | (356,083 | ) | (314,017 | ) | (345,321 | ) | (166,857 | ) | ||||||||||
Average tangible common equity (non-GAAP) | $ | 830,452 | $ | 812,116 | $ | 768,823 | $ | 810,456 | $ | 737,524 | ||||||||||
Return on average assets | 1.33 | % | 1.46 | % | 0.70 | % | 1.45 | % | 0.91 | % | ||||||||||
Return on average tangible assets (non-GAAP) | 1.44 | % | 1.58 | % | 0.77 | % | 1.57 | % | 0.95 | % | ||||||||||
Adjusted return on average tangible assets (non-GAAP) | 1.44 | % | 1.58 | % | 1.55 | % | 1.57 | % | 1.32 | % | ||||||||||
Return on average equity | 11.10 | % | 12.26 | % | 6.13 | % | 12.29 | % | 7.88 | % | ||||||||||
Return on average tangible common equity (non-GAAP) | 16.56 | % | 18.38 | % | 9.17 | % | 18.23 | % | 9.91 | % | ||||||||||
Adjusted return on average tangible common equity (non-GAAP) | 16.56 | % | 18.38 | % | 18.37 | % | 18.23 | % | 13.75 | % | ||||||||||
(1) Acquisition-related adjustments: | ||||||||||||||||||||
Provision expense adjustments: | ||||||||||||||||||||
CECL day 1 provision expense (non-GAAP) | $ | — | $ | — | $ | 16,348 | $ | — | $ | 21,706 | ||||||||||
Non-interest expense adjustments: | ||||||||||||||||||||
Acquisition-related expenses (non-GAAP) | — | — | 6,811 | — | 15,067 | |||||||||||||||
Acquisition-related adjustments before tax (non-GAAP) | — | — | 23,159 | — | 36,773 | |||||||||||||||
Tax expense impact | — | — | (5,334 | ) | — | (8,470 | ) | |||||||||||||
Acquisition-related adjustments, after tax (non-GAAP) | $ | — | $ | — | $ | 17,825 | $ | — | $ | 28,303 |
Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin
As of and for the three months ended | As of and for the years ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Interest income | $ | 134,703 | $ | 126,110 | $ | 103,958 | $ | 495,415 | $ | 284,688 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,667 | 1,575 | 1,454 | 6,099 | 5,512 | |||||||||||||||
Interest income FTE (non-GAAP) | $ | 136,370 | $ | 127,685 | $ | 105,412 | $ | 501,514 | $ | 290,200 | ||||||||||
Net interest income | $ | 89,501 | $ | 87,777 | $ | 95,066 | $ | 361,951 | $ | 266,835 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,667 | 1,575 | 1,454 | 6,099 | 5,512 | |||||||||||||||
Net interest income FTE (non-GAAP) | $ | 91,168 | $ | 89,352 | $ | 96,520 | $ | 368,050 | $ | 272,347 | ||||||||||
Average earning assets | $ | 9,147,977 | $ | 9,039,864 | $ | 8,729,482 | $ | 9,023,111 | $ | 7,308,753 | ||||||||||
Yield on earning assets | 5.84 | % | 5.53 | % | 4.72 | % | 5.49 | % | 3.90 | % | ||||||||||
Yield on earning assets FTE (non-GAAP) | 5.91 | % | 5.60 | % | 4.79 | % | 5.56 | % | 3.97 | % | ||||||||||
Net interest margin | 3.88 | % | 3.85 | % | 4.32 | % | 4.01 | % | 3.65 | % | ||||||||||
Net interest margin FTE (non-GAAP) | 3.95 | % | 3.92 | % | 4.39 | % | 4.08 | % | 3.73 | % | ||||||||||
Efficiency Ratio and Pre-Provision Net Revenue
As of and for the three months ended | As of and for the years ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Net interest income | $ | 89,501 | $ | 87,777 | $ | 95,066 | $ | 361,951 | $ | 266,835 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,667 | 1,575 | 1,454 | 6,099 | 5,512 | |||||||||||||||
Net interest income FTE (non-GAAP) | $ | 91,168 | $ | 89,352 | $ | 96,520 | $ | 368,050 | $ | 272,347 | ||||||||||
Non-interest income | $ | 16,064 | $ | 19,365 | $ | 14,138 | $ | 63,917 | $ | 67,312 | ||||||||||
Non-interest expense | $ | 62,095 | $ | 60,603 | $ | 67,662 | $ | 241,971 | $ | 211,234 | ||||||||||
Less: other intangible assets amortization | (2,008 | ) | (2,008 | ) | (1,363 | ) | (7,386 | ) | (2,338 | ) | ||||||||||
Less: acquisition-related expenses (non-GAAP) | — | — | (6,811 | ) | — | (15,067 | ) | |||||||||||||
Non-interest expense adjusted for other intangible assets amortization and acquisition-related expenses (non-GAAP) | $ | 60,087 | $ | 58,595 | $ | 59,488 | $ | 234,585 | $ | 193,829 | ||||||||||
Non-interest expense | $ | 62,095 | $ | 60,603 | $ | 67,662 | $ | 241,971 | $ | 211,234 | ||||||||||
Less: acquisition-related expenses (non-GAAP) | — | — | (6,811 | ) | — | (15,067 | ) | |||||||||||||
Non-interest expense, adjusted for acquisition-related expenses (non-GAAP) | $ | 62,095 | $ | 60,603 | $ | 60,851 | $ | 241,971 | $ | 196,167 | ||||||||||
Efficiency ratio | 58.82 | % | 56.56 | % | 61.96 | % | 56.82 | % | 63.22 | % | ||||||||||
Efficiency ratio excluding other intangible assets amortization and acquisition-related expenses FTE (non-GAAP) | 56.03 | % | 53.90 | % | 53.76 | % | 54.31 | % | 57.07 | % | ||||||||||
Pre-provision net revenue (non-GAAP) | $ | 43,470 | $ | 46,539 | $ | 41,542 | $ | 183,897 | $ | 122,913 | ||||||||||
Pre-provision net revenue, FTE (non-GAAP) | 45,137 | 48,114 | 42,996 | 189,996 | 128,425 | |||||||||||||||
Pre-provision net revenue FTE, adjusted for acquisition-related expenses (non-GAAP) | 45,137 | 48,114 | 49,807 | 189,996 | 143,492 | |||||||||||||||
Adjusted Net Income and Earnings Per Share
As of and for the three months ended | As of and for the years ended | ||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Adjustments to net income: | |||||||||||||||
Net income | $ | 33,121 | $ | 36,087 | $ | 16,721 | $ | 142,048 | $ | 71,274 | |||||
Add: Acquisition-related adjustments, after tax (non-GAAP) | — | — | 17,825 | — | 28,303 | ||||||||||
Adjusted net income (non-GAAP) | $ | 33,121 | $ | 36,087 | $ | 34,546 | $ | 142,048 | $ | 99,577 | |||||
Adjustments to earnings per share: | |||||||||||||||
Earnings per share diluted | $ | 0.87 | $ | 0.94 | $ | 0.44 | $ | 3.72 | $ | 2.18 | |||||
Add: Acquisition-related adjustments, after tax (non-GAAP) | — | — | 0.47 | — | 0.87 | ||||||||||
Adjusted earnings per share - diluted (non-GAAP)(1) | $ | 0.87 | $ | 0.94 | $ | 0.91 | $ | 3.72 | $ | 3.05 |
Source:
2024 GlobeNewswire, Inc., source