Delaware | 001-15373 | 43-1706259 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
150 N. Meramec, St. Louis, Missouri (Address of principal executive offices) | 63105 (Zip Code) |
Registrant's telephone number, including area code |
(314) 725-5500 |
Not applicable |
(Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | EFSC | Nasdaq Global Select Market |
ENTERPRISE FINANCIAL SERVICES CORP | ||||
Date: | July 22, 2019 | By: | /s/ Troy R. Dumlao | |
Troy R. Dumlao | ||||
Senior Vice President and Chief Accounting Officer | ||||
• | Net income of $18.4 million, $0.68 per diluted share, or $0.981 excluding merger-related expenses |
• | Net interest margin (tax equivalent) 3.86%, stable with the first quarter’s margin of 3.87% |
• | Return on average assets (“ROAA”) of 1.05% |
• | Loans increased $132 million, or 11% annualized |
• | Merger-related expenses of $10.3 million, pretax, reduced diluted earnings per share and ROAA by $0.30 and 0.45%, respectively |
For the Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||
Net interest income | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | $ | 47,048 | |||||||||
Less: Incremental accretion income | 910 | 1,157 | 2,109 | 535 | 291 | ||||||||||||||
Core net interest income2 | $ | 60,805 | $ | 51,186 | $ | 48,484 | $ | 47,558 | $ | 46,757 | |||||||||
Net interest margin (tax equivalent) | 3.86 | % | 3.87 | % | 3.94 | % | 3.78 | % | 3.77 | % | |||||||||
Core net interest margin,2 (tax equivalent) | 3.80 | % | 3.79 | % | 3.77 | % | 3.74 | % | 3.75 | % |
For the Quarter ended | ||||||||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Loans, excluding incremental accretion* | $ | 5,095,181 | $ | 68,830 | 5.42 | % | $ | 4,511,387 | $ | 59,973 | 5.39 | % | $ | 4,224,016 | $ | 52,774 | 5.01 | % | ||||||||||||||
Investments in debt and equity securities* | 1,246,529 | 9,152 | 2.95 | 896,936 | 6,292 | 2.84 | 743,534 | 4,789 | 2.58 | |||||||||||||||||||||||
Short-term investments | 111,291 | 703 | 2.53 | 102,166 | 447 | 1.77 | 56,057 | 231 | 1.65 | |||||||||||||||||||||||
Total earning assets | 6,453,001 | 78,685 | 4.89 | 5,510,489 | 66,712 | 4.91 | 5,023,607 | 57,794 | 4.61 | |||||||||||||||||||||||
Noninterest-earning assets | 604,604 | 445,597 | 391,544 | |||||||||||||||||||||||||||||
Total assets | $ | 7,057,605 | $ | 5,956,086 | $ | 5,415,151 | ||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,384,090 | $ | 2,134 | 0.62 | % | $ | 1,077,289 | $ | 1,790 | 0.67 | % | $ | 823,650 | $ | 817 | 0.40 | % | ||||||||||||||
Money market accounts | 1,576,333 | 6,996 | 1.78 | 1,521,878 | 6,515 | 1.74 | 1,494,194 | 4,445 | 1.19 | |||||||||||||||||||||||
Savings | 562,503 | 231 | 0.16 | 299,731 | 183 | 0.25 | 208,662 | 147 | 0.28 | |||||||||||||||||||||||
Certificates of deposit | 815,138 | 3,758 | 1.85 | 712,269 | 3,332 | 1.90 | 633,897 | 2,338 | 1.48 | |||||||||||||||||||||||
Total interest-bearing deposits | 4,338,064 | 13,119 | 1.21 | 3,611,167 | 11,820 | 1.33 | 3,160,403 | 7,747 | 0.98 | |||||||||||||||||||||||
Subordinated debentures | 141,059 | 1,958 | 5.57 | 124,154 | 1,648 | 5.38 | 118,124 | 1,454 | 4.94 | |||||||||||||||||||||||
FHLB advances | 263,384 | 1,696 | 2.58 | 215,420 | 1,398 | 2.63 | 294,643 | 1,448 | 1.97 | |||||||||||||||||||||||
Other borrowed funds | 204,375 | 713 | 1.40 | 202,197 | 408 | 0.82 | 167,661 | 182 | 0.44 | |||||||||||||||||||||||
Total interest-bearing liabilities | 4,946,882 | 17,486 | 1.42 | 4,152,938 | 15,274 | 1.49 | 3,740,831 | 10,831 | 1.16 | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 1,244,008 | 1,088,323 | 1,069,888 | |||||||||||||||||||||||||||||
Other liabilities | 53,609 | 52,371 | 35,877 | |||||||||||||||||||||||||||||
Total liabilities | 6,244,499 | 5,293,632 | 4,846,596 | |||||||||||||||||||||||||||||
Shareholders' equity | 813,106 | 662,454 | 568,555 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 7,057,605 | $ | 5,956,086 | $ | 5,415,151 | ||||||||||||||||||||||||||
Core net interest income2 | 61,199 | 51,438 | 46,963 | |||||||||||||||||||||||||||||
Core net interest margin2 | 3.80 | % | 3.79 | % | 3.75 | % | ||||||||||||||||||||||||||
Incremental accretion on non-core acquired loans | 910 | 1,157 | 291 | |||||||||||||||||||||||||||||
Total net interest income | $ | 62,109 | $ | 52,595 | $ | 47,254 | ||||||||||||||||||||||||||
Net interest margin | 3.86 | % | 3.87 | % | 3.77 | % | ||||||||||||||||||||||||||
* Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate. The tax-equivalent adjustments were $0.4 million for the three months ended June 30, 2019, $0.3 million for the three months ended March 31, 2019, and $0.2 million for the three months ended June 30, 2018. |
At the Quarter ended | |||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||
($ in thousands) | June 30, 2019 | Trinityb | Legacy EFSCb | Consolidated | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||||||
C&I - general | $ | 1,103,908 | $ | 65,122 | $ | 1,063,633 | $ | 1,128,755 | $ | 995,491 | $ | 969,898 | $ | 992,311 | |||||||||||||
CRE investor owned - general | 1,235,596 | 304,615 | 878,856 | 1,183,471 | 862,423 | 846,322 | 841,587 | ||||||||||||||||||||
CRE owner occupied - general | 591,401 | 91,758 | 484,268 | 576,026 | 496,835 | 482,146 | 498,834 | ||||||||||||||||||||
Enterprise value lendinga | 445,981 | — | 439,500 | 439,500 | 465,992 | 442,439 | 442,877 | ||||||||||||||||||||
Life insurance premium financinga | 465,777 | — | 440,693 | 440,693 | 417,950 | 378,826 | 358,787 | ||||||||||||||||||||
Residential real estate - general | 409,200 | 137,487 | 295,069 | 432,556 | 304,671 | 314,315 | 326,790 | ||||||||||||||||||||
Construction and land development - general | 376,597 | 70,251 | 274,956 | 345,207 | 310,832 | 312,617 | 289,206 | ||||||||||||||||||||
Tax creditsa | 268,405 | — | 235,454 | 235,454 | 262,735 | 256,666 | 260,595 | ||||||||||||||||||||
Agriculture | 131,671 | — | 126,088 | 126,088 | 136,188 | 138,005 | 128,118 | ||||||||||||||||||||
Consumer and other - general | 120,961 | 12,835 | 96,492 | 109,327 | 96,884 | 126,196 | 136,656 | ||||||||||||||||||||
Total Loans | $ | 5,149,497 | $ | 682,068 | $ | 4,335,009 | $ | 5,017,077 | $ | 4,350,001 | $ | 4,267,430 | $ | 4,275,761 | |||||||||||||
Total loan yield | 5.49 | % | 5.50 | % | 5.44 | % | 5.18 | % | 5.04 | % | |||||||||||||||||
Total C&I loans to total loans | 44 | % | 44 | % | 49 | % | 48 | % | 48 | % | |||||||||||||||||
Variable interest rate loans to total loans | 60 | % | 60 | % | 62 | % | 62 | % | 60 | % | |||||||||||||||||
Certain prior period amounts have been reclassified among the categories to conform to the current period presentation | |||||||||||||||||||||||||||
a Specialized categories may include a mix of C&I, CRE, Construction and land development, or Consumer and other loans. | |||||||||||||||||||||||||||
b Amounts reported are as of March 31, 2019 and are separately shown attributable to the Trinity loan portfolio and related operations acquired on March 8, 2019, and the Company’s pre-Trinity acquisition loan portfolio and related operations. |
For the Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||
Nonperforming loans | $ | 19,842 | $ | 9,607 | $ | 16,745 | $ | 17,044 | $ | 14,801 | |||||||||
Other real estate | 10,531 | 6,804 | 469 | 408 | 454 | ||||||||||||||
Nonperforming assets | $ | 30,373 | $ | 16,411 | $ | 17,214 | $ | 17,452 | $ | 15,255 | |||||||||
Nonperforming loans to total loans | 0.39 | % | 0.19 | % | 0.38 | % | 0.40 | % | 0.35 | % | |||||||||
Nonperforming assets to total assets | 0.42 | 0.24 | 0.30 | 0.32 | 0.28 | ||||||||||||||
Allowance for loan losses to total loans | 0.85 | 0.86 | 1.00 | 1.04 | 1.04 | ||||||||||||||
Net charge-offs | $ | 969 | $ | 1,826 | $ | 2,822 | $ | 2,447 | $ | 641 |
At the Quarter ended | |||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||
($ in thousands) | June 30, 2019 | Trinitya | Legacy EFSCa | Consolidated | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||||||
Noninterest-bearing accounts | $ | 1,181,577 | $ | 169,344 | $ | 1,017,164 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | $ | 1,050,969 | |||||||||||||
Interest-bearing transaction accounts | 1,392,586 | 401,257 | 988,569 | 1,389,826 | 1,037,684 | 743,351 | 754,819 | ||||||||||||||||||||
Money market and savings accounts | 2,162,605 | 390,192 | 1,765,839 | 2,156,031 | 1,765,154 | 1,730,762 | 1,768,793 | ||||||||||||||||||||
Brokered certificates of deposit | 213,138 | — | 180,788 | 180,788 | 198,981 | 202,323 | 224,192 | ||||||||||||||||||||
Other certificates of deposit | 609,432 | 133,556 | 490,404 | 623,960 | 485,448 | 471,914 | 449,139 | ||||||||||||||||||||
Total deposit portfolio | $ | 5,559,338 | $ | 1,094,349 | $ | 4,442,764 | $ | 5,537,113 | $ | 4,587,985 | $ | 4,210,476 | $ | 4,247,912 | |||||||||||||
Noninterest-bearing deposits to total deposits | 21 | % | 15 | % | 23 | % | 21 | % | 24 | % | 25 | % | 25 | % | |||||||||||||
aAmounts reported are as of March 31, 2019 and are shown separately attributable to the Trinity deposit portfolio and related operations acquired on March 8, 2019, and the Company’s pre-Trinity acquisition deposit portfolio and related operations. |
At the Quarter ended | ||||||||||||||
Percent | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||
Total risk-based capital to risk-weighted assets | 12.62 | % | 12.86 | % | 13.02 | % | 12.94 | % | 12.60 | % | ||||
Tier 1 capital to risk weighted assets | 11.06 | 11.25 | 11.14 | 11.03 | 10.68 | |||||||||
Common equity tier 1 capital to risk-weighted assets | 9.51 | 9.64 | 9.79 | 9.66 | 9.32 | |||||||||
Tangible common equity to tangible assets1 | 8.43 | 8.35 | 8.66 | 8.54 | 8.30 |
For the Quarter ended | For the Six Months ended | ||||||||||||||||||||||||||
($ in thousands, except per share data) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | ||||||||||||||||||||
EARNINGS SUMMARY | |||||||||||||||||||||||||||
Net interest income | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | $ | 47,048 | $ | 114,058 | $ | 93,219 | |||||||||||||
Provision for loan losses | 1,722 | 1,476 | 2,120 | 2,263 | 390 | 3,198 | 2,261 | ||||||||||||||||||||
Noninterest income | 11,964 | 9,230 | 10,702 | 8,410 | 9,693 | 21,194 | 19,235 | ||||||||||||||||||||
Noninterest expense | 49,054 | 39,838 | 30,747 | 29,922 | 29,219 | 88,892 | 58,362 | ||||||||||||||||||||
Income before income tax expense | 22,903 | 20,259 | 28,428 | 24,318 | 27,132 | 43,162 | 51,831 | ||||||||||||||||||||
Income tax expense | 4,479 | 4,103 | 4,899 | 1,802 | 4,881 | 8,582 | 8,659 | ||||||||||||||||||||
Net income | $ | 18,424 | $ | 16,156 | $ | 23,529 | $ | 22,516 | $ | 22,251 | $ | 34,580 | $ | 43,172 | |||||||||||||
Diluted earnings per share | $ | 0.68 | $ | 0.67 | $ | 1.02 | $ | 0.97 | $ | 0.95 | $ | 1.36 | $ | 1.85 | |||||||||||||
Return on average assets | 1.05 | % | 1.10 | % | 1.69 | % | 1.63 | % | 1.65 | % | 1.07 | % | 1.62 | % | |||||||||||||
Return on average common equity | 9.09 | 9.89 | 15.61 | 15.22 | 15.70 | 9.45 | % | 15.51 | % | ||||||||||||||||||
Return on average tangible common equity1 | 12.92 | 12.93 | 19.79 | 19.42 | 20.23 | 12.93 | % | 20.08 | % | ||||||||||||||||||
Net interest margin (tax equivalent) | 3.86 | 3.87 | 3.94 | 3.78 | 3.77 | 3.87 | % | 3.79 | % | ||||||||||||||||||
Core net interest margin (tax equivalent)1 | 3.80 | 3.79 | 3.77 | 3.74 | 3.75 | 3.80 | % | 3.74 | % | ||||||||||||||||||
Efficiency ratio | 66.58 | 64.70 | 50.16 | 52.96 | 51.50 | 65.72 | % | 51.90 | % | ||||||||||||||||||
Core efficiency ratio1 | 53.30 | 54.06 | 49.77 | 52.23 | 52.36 | 53.65 | % | 53.18 | % | ||||||||||||||||||
Total assets | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | $ | 5,509,924 | |||||||||||||||||
Total average assets | 7,057,605 | 5,956,086 | 5,518,740 | 5,471,504 | 5,415,151 | 6,509,888 | 5,377,839 | ||||||||||||||||||||
Total deposits | 5,559,338 | 5,537,113 | 4,587,985 | 4,210,476 | 4,247,912 | ||||||||||||||||||||||
Total average deposits | 5,582,072 | 4,699,490 | 4,434,634 | 4,255,523 | 4,230,291 | 5,143,219 | 4,177,601 | ||||||||||||||||||||
Period end common shares outstanding | 26,906 | 26,878 | 22,812 | 23,092 | 23,141 | ||||||||||||||||||||||
Dividends per common share | $ | 0.15 | $ | 0.14 | $ | 0.13 | $ | 0.12 | $ | 0.11 | 0.29 | 0.22 | |||||||||||||||
Tangible book value per common share1 | $ | 21.74 | $ | 20.80 | $ | 20.95 | $ | 19.94 | $ | 19.32 | |||||||||||||||||
Tangible common equity to tangible assets1 | 8.43 | % | 8.35 | % | 8.66 | % | 8.54 | % | 8.30 | % | |||||||||||||||||
Total risk-based capital to risk-weighted assets | 12.62 | 12.86 | 13.02 | 12.94 | 12.60 | ||||||||||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
For the Quarter ended | For the Six Months ended | ||||||||||||||||||||||||||
($ in thousands, except per share data) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | ||||||||||||||||||||
INCOME STATEMENTS | |||||||||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||||||
Total interest income | $ | 79,201 | $ | 67,617 | $ | 64,002 | $ | 60,757 | $ | 57,879 | $ | 146,818 | $ | 113,043 | |||||||||||||
Total interest expense | 17,486 | 15,274 | 13,409 | 12,664 | 10,831 | 32,760 | 19,824 | ||||||||||||||||||||
Net interest income | 61,715 | 52,343 | 50,593 | 48,093 | 47,048 | 114,058 | 93,219 | ||||||||||||||||||||
Provision for loan losses | 1,722 | 1,476 | 2,120 | 2,263 | 390 | 3,198 | 2,261 | ||||||||||||||||||||
Net interest income after provision for loan losses | 59,993 | 50,867 | 48,473 | 45,830 | 46,658 | 110,860 | 90,958 | ||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||
Deposit service charges | 3,366 | 2,935 | 2,894 | 2,997 | 3,007 | 6,301 | 5,858 | ||||||||||||||||||||
Wealth management revenue | 2,661 | 1,992 | 1,974 | 2,012 | 2,141 | 4,653 | 4,255 | ||||||||||||||||||||
Card services revenue | 2,461 | 1,790 | 1,760 | 1,760 | 1,650 | 4,251 | 3,166 | ||||||||||||||||||||
Tax credit income, net | 572 | 158 | 2,312 | 192 | 64 | 730 | 316 | ||||||||||||||||||||
Gain (loss) on sale of other real estate | (18 | ) | 66 | — | 13 | — | 48 | — | |||||||||||||||||||
Other income | 2,922 | 2,289 | 1,762 | 1,436 | 2,831 | 5,211 | 5,640 | ||||||||||||||||||||
Total noninterest income | 11,964 | 9,230 | 10,702 | 8,410 | 9,693 | 21,194 | 19,235 | ||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Employee compensation and benefits | 20,687 | 19,352 | 16,669 | 16,297 | 16,582 | 40,039 | 33,073 | ||||||||||||||||||||
Occupancy | 3,188 | 2,637 | 2,408 | 2,394 | 2,342 | 5,825 | 4,748 | ||||||||||||||||||||
Merger-related expenses | 10,306 | 7,270 | 1,271 | — | — | 17,576 | — | ||||||||||||||||||||
Other | 14,873 | 10,579 | 10,399 | 11,231 | 10,295 | 25,452 | 20,541 | ||||||||||||||||||||
Total noninterest expense | 49,054 | 39,838 | 30,747 | 29,922 | 29,219 | 88,892 | 58,362 | ||||||||||||||||||||
Income before income tax expense | 22,903 | 20,259 | 28,428 | 24,318 | 27,132 | 43,162 | 51,831 | ||||||||||||||||||||
Income tax expense | 4,479 | 4,103 | 4,899 | 1,802 | 4,881 | 8,582 | 8,659 | ||||||||||||||||||||
Net income | $ | 18,424 | $ | 16,156 | $ | 23,529 | $ | 22,516 | $ | 22,251 | $ | 34,580 | $ | 43,172 | |||||||||||||
Basic earnings per share | $ | 0.69 | $ | 0.68 | $ | 1.02 | $ | 0.97 | $ | 0.96 | $ | 1.36 | $ | 1.87 | |||||||||||||
Diluted earnings per share | 0.68 | 0.67 | 1.02 | 0.97 | 0.95 | 1.36 | 1.85 |
At the Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||||||||
BALANCE SHEETS | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 106,835 | $ | 85,578 | $ | 91,511 | $ | 78,119 | $ | 91,851 | |||||||||
Interest-earning deposits | 85,315 | 139,389 | 108,226 | 81,351 | 87,586 | ||||||||||||||
Debt and equity investments | 1,328,767 | 1,198,413 | 813,702 | 775,344 | 756,203 | ||||||||||||||
Loans held for sale | 1,437 | 654 | 392 | 738 | 1,388 | ||||||||||||||
Loans | 5,149,497 | 5,017,077 | 4,350,001 | 4,267,430 | 4,275,761 | ||||||||||||||
Less: Allowance for loan losses | 43,822 | 43,095 | 43,476 | 44,186 | 44,370 | ||||||||||||||
Total loans, net | 5,105,675 | 4,973,982 | 4,306,525 | 4,223,244 | 4,231,391 | ||||||||||||||
Other real estate | 10,531 | 6,804 | 469 | 408 | 454 | ||||||||||||||
Fixed assets, net | 58,888 | 60,301 | 32,109 | 32,354 | 32,814 | ||||||||||||||
Tax credits, held for sale | 37,294 | 37,215 | 37,587 | 45,625 | 46,481 | ||||||||||||||
Goodwill | 211,251 | 207,632 | 117,345 | 117,345 | 117,345 | ||||||||||||||
Intangible assets, net | 29,201 | 31,048 | 8,553 | 9,148 | 9,768 | ||||||||||||||
Other assets | 206,661 | 191,741 | 129,243 | 153,863 | 134,643 | ||||||||||||||
Total assets | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | $ | 5,509,924 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,181,577 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | $ | 1,050,969 | |||||||||
Interest-bearing deposits | 4,377,761 | 4,350,605 | 3,487,267 | 3,148,350 | 3,196,943 | ||||||||||||||
Total deposits | 5,559,338 | 5,537,113 | 4,587,985 | 4,210,476 | 4,247,912 | ||||||||||||||
Subordinated debentures | 141,100 | 140,668 | 118,156 | 118,144 | 118,131 | ||||||||||||||
FHLB advances | 389,446 | 180,466 | 70,000 | 401,000 | 361,534 | ||||||||||||||
Other borrowings | 198,104 | 212,171 | 223,450 | 161,795 | 167,216 | ||||||||||||||
Other liabilities | 68,366 | 64,504 | 42,267 | 39,287 | 41,047 | ||||||||||||||
Total liabilities | 6,356,354 | 6,134,922 | 5,041,858 | 4,930,702 | 4,935,840 | ||||||||||||||
Shareholders’ equity | 825,501 | 797,835 | 603,804 | 586,837 | 574,084 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | $ | 5,509,924 |
For the Six Months ended | |||||||||||||||||||||
June 30, 2019 | June 30, 2018 | ||||||||||||||||||||
($ in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, excluding incremental accretion* | $ | 4,804,898 | $ | 128,803 | 5.41 | % | $ | 4,181,728 | $ | 102,580 | 4.95 | % | |||||||||
Investments in debt and equity securities* | 1,072,698 | 15,444 | 2.90 | 742,068 | 9,356 | 2.54 | |||||||||||||||
Short-term investments | 106,752 | 1,150 | 2.17 | 62,651 | 471 | 1.52 | |||||||||||||||
Total earning assets | 5,984,348 | 145,397 | 4.90 | 4,986,447 | 112,407 | 4.55 | |||||||||||||||
Noninterest-earning assets | 525,540 | 391,392 | |||||||||||||||||||
Total assets | $ | 6,509,888 | $ | 5,377,839 | |||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,231,537 | $ | 3,924 | 0.64 | % | $ | 843,172 | $ | 1,623 | 0.39 | % | |||||||||
Money market accounts | 1,549,255 | 13,511 | 1.76 | 1,442,910 | 7,798 | 1.09 | |||||||||||||||
Savings | 431,843 | 414 | 0.19 | 205,276 | 272 | 0.27 | |||||||||||||||
Certificates of deposit | 763,988 | 7,090 | 1.87 | 618,900 | 4,237 | 1.38 | |||||||||||||||
Total interest-bearing deposits | 3,976,623 | 24,939 | 1.26 | 3,110,258 | 13,930 | 0.90 | |||||||||||||||
Subordinated debentures | 132,653 | 3,606 | 5.48 | 118,117 | 2,822 | 4.82 | |||||||||||||||
FHLB advances | 239,535 | 3,094 | 2.60 | 298,573 | 2,706 | 1.83 | |||||||||||||||
Other borrowed funds | 203,292 | 1,121 | 1.11 | 187,442 | 366 | 0.39 | |||||||||||||||
Total interest-bearing liabilities | 4,552,103 | 32,760 | 1.45 | 3,714,390 | 19,824 | 1.08 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 1,166,595 | 1,067,343 | |||||||||||||||||||
Other liabilities | 52,994 | 34,755 | |||||||||||||||||||
Total liabilities | 5,771,692 | 4,816,488 | |||||||||||||||||||
Shareholders' equity | 738,196 | 561,351 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,509,888 | $ | 5,377,839 | |||||||||||||||||
Core net interest income1 | 112,637 | 92,583 | |||||||||||||||||||
Core net interest margin1 | 3.80 | % | 3.74 | % | |||||||||||||||||
Incremental accretion on non-core acquired loans | 2,067 | 1,057 | |||||||||||||||||||
Total net interest income | $ | 114,704 | $ | 93,640 | |||||||||||||||||
Net interest margin | 3.87 | % | 3.79 | % | |||||||||||||||||
* Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate. The tax-equivalent adjustments were $0.6 million and $0.4 million for the six months ended June 30, 2019 and 2018, respectively. |
For the Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||||||||
LOAN PORTFOLIO | |||||||||||||||||||
Commercial and industrial | $ | 2,265,480 | $ | 2,227,050 | $ | 2,123,167 | $ | 2,035,852 | $ | 2,040,751 | |||||||||
Commercial real estate | 1,940,958 | 1,870,040 | 1,481,834 | 1,450,184 | 1,456,373 | ||||||||||||||
Construction real estate | 404,557 | 369,365 | 334,645 | 332,026 | 305,238 | ||||||||||||||
Residential real estate | 409,200 | 432,902 | 305,026 | 314,676 | 327,157 | ||||||||||||||
Consumer and other | 129,302 | 117,720 | 105,329 | 134,692 | 146,242 | ||||||||||||||
Total loans | $ | 5,149,497 | $ | 5,017,077 | $ | 4,350,001 | $ | 4,267,430 | $ | 4,275,761 | |||||||||
DEPOSIT PORTFOLIO | |||||||||||||||||||
Noninterest-bearing accounts | $ | 1,181,577 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | $ | 1,050,969 | |||||||||
Interest-bearing transaction accounts | 1,392,586 | 1,389,826 | 1,037,684 | 743,351 | 754,819 | ||||||||||||||
Money market and savings accounts | 2,162,605 | 2,156,031 | 1,765,154 | 1,730,762 | 1,768,793 | ||||||||||||||
Brokered certificates of deposit | 213,138 | 180,788 | 198,981 | 202,323 | 224,192 | ||||||||||||||
Other certificates of deposit | 609,432 | 623,960 | 485,448 | 471,914 | 449,139 | ||||||||||||||
Total deposit portfolio | $ | 5,559,338 | $ | 5,537,113 | $ | 4,587,985 | $ | 4,210,476 | $ | 4,247,912 | |||||||||
AVERAGE BALANCES | |||||||||||||||||||
Total loans | $ | 5,095,181 | $ | 4,511,387 | $ | 4,272,132 | $ | 4,252,524 | $ | 4,224,016 | |||||||||
Debt and equity investments | 1,246,529 | 896,936 | 769,461 | 755,129 | 743,534 | ||||||||||||||
Interest-earning assets | 6,453,001 | 5,510,489 | 5,118,319 | 5,072,573 | 5,023,607 | ||||||||||||||
Total assets | 7,057,605 | 5,956,086 | 5,518,740 | 5,471,504 | 5,415,151 | ||||||||||||||
Deposits | 5,582,072 | 4,699,490 | 4,434,634 | 4,255,523 | 4,230,291 | ||||||||||||||
Shareholders’ equity | 813,106 | 662,454 | 597,864 | 586,765 | 568,555 | ||||||||||||||
Tangible common equity1 | 571,890 | 506,560 | 471,678 | 459,975 | 441,136 | ||||||||||||||
YIELDS (tax equivalent) | |||||||||||||||||||
Total loans | 5.49 | % | 5.50 | % | 5.44 | % | 5.18 | % | 5.04 | % | |||||||||
Debt and equity investments | 2.95 | 2.84 | 2.73 | 2.71 | 2.58 | ||||||||||||||
Interest-earning assets | 4.95 | 4.99 | 4.98 | 4.77 | 4.64 | ||||||||||||||
Interest-bearing deposits | 1.21 | 1.33 | 1.27 | 1.16 | 0.98 | ||||||||||||||
Total deposits | 0.94 | 1.02 | 0.95 | 0.86 | 0.73 | ||||||||||||||
Subordinated debentures | 5.57 | 5.38 | 5.01 | 4.98 | 4.94 | ||||||||||||||
Borrowed funds | 2.07 | 1.75 | 1.60 | 1.62 | 1.41 | ||||||||||||||
Interest-bearing liabilities | 1.42 | 1.49 | 1.42 | 1.34 | 1.16 | ||||||||||||||
Net interest margin | 3.86 | 3.87 | 3.94 | 3.78 | 3.77 |
For the Quarter ended | |||||||||||||||||||
(in thousands, except % and per share data) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||||||||
ASSET QUALITY | |||||||||||||||||||
Net charge-offs | $ | 969 | $ | 1,826 | $ | 2,822 | $ | 2,447 | $ | 641 | |||||||||
Nonperforming loans | 19,842 | 9,607 | 16,745 | 17,044 | 14,801 | ||||||||||||||
Classified assets | 91,715 | 79,750 | 70,126 | 73,704 | 74,001 | ||||||||||||||
Nonperforming loans to total loans | 0.39 | % | 0.19 | % | 0.38 | % | 0.40 | % | 0.35 | % | |||||||||
Nonperforming assets to total assets | 0.42 | 0.24 | 0.30 | 0.32 | 0.28 | ||||||||||||||
Allowance for loan losses to total loans | 0.85 | 0.86 | 1.00 | 1.04 | 1.04 | ||||||||||||||
Allowance for loan losses to nonperforming loans | 220.9 | 448.6 | 259.6 | 259.3 | 299.8 | ||||||||||||||
Net charge-offs to average loans (annualized) | 0.08 | 0.16 | 0.26 | 0.23 | 0.06 | ||||||||||||||
WEALTH MANAGEMENT | |||||||||||||||||||
Trust assets under management | $ | 1,627,050 | $ | 1,587,627 | $ | 1,119,329 | $ | 1,174,798 | $ | 1,337,030 | |||||||||
Trust assets under administration | 2,428,551 | 2,405,673 | 1,811,512 | 1,984,859 | 2,165,870 | ||||||||||||||
MARKET DATA | |||||||||||||||||||
Book value per common share | $ | 30.68 | $ | 29.68 | $ | 26.47 | $ | 25.41 | $ | 24.81 | |||||||||
Tangible book value per common share1 | 21.74 | 20.80 | 20.95 | 19.94 | 19.32 | ||||||||||||||
Market value per share | 41.60 | 40.77 | 37.63 | 53.05 | 53.95 | ||||||||||||||
Period end common shares outstanding | 26,906 | 26,878 | 22,812 | 23,092 | 23,141 | ||||||||||||||
Average basic common shares | 26,887 | 23,927 | 23,014 | 23,148 | 23,124 | ||||||||||||||
Average diluted common shares | 26,940 | 24,083 | 23,170 | 23,329 | 23,318 | ||||||||||||||
CAPITAL | |||||||||||||||||||
Total risk-based capital to risk-weighted assets | 12.62 | % | 12.86 | % | 13.02 | % | 12.94 | % | 12.60 | % | |||||||||
Tier 1 capital to risk-weighted assets | 11.06 | 11.25 | 11.14 | 11.03 | 10.68 | ||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 9.51 | 9.64 | 9.79 | 9.66 | 9.32 | ||||||||||||||
Tangible common equity to tangible assets1 | 8.43 | 8.35 | 8.66 | 8.54 | 8.30 | ||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
For the Quarter ended | For the Six Months ended | ||||||||||||||||||||||||||
($ in thousands, except per share data) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | ||||||||||||||||||||
CORE PERFORMANCE MEASURES | |||||||||||||||||||||||||||
Net interest income | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | $ | 47,048 | $ | 114,058 | $ | 93,219 | |||||||||||||
Less: Incremental accretion income | 910 | 1,157 | 2,109 | 535 | 291 | 2,067 | 1,057 | ||||||||||||||||||||
Core net interest income | 60,805 | 51,186 | 48,484 | 47,558 | 46,757 | 111,991 | 92,162 | ||||||||||||||||||||
Total noninterest income | 11,964 | 9,230 | 10,702 | 8,410 | 9,693 | 21,194 | 19,235 | ||||||||||||||||||||
Less: Other income from non-core acquired assets | 2 | 365 | 10 | 7 | 18 | 367 | 1,031 | ||||||||||||||||||||
Less: Gain on sale of investment securities | — | — | — | — | — | — | 9 | ||||||||||||||||||||
Less: Other non-core income | 266 | — | 26 | — | 649 | 266 | 649 | ||||||||||||||||||||
Core noninterest income | 11,696 | 8,865 | 10,666 | 8,403 | 9,026 | 20,561 | 17,546 | ||||||||||||||||||||
Total core revenue | 72,501 | 60,051 | 59,150 | 55,961 | 55,783 | 132,552 | 109,708 | ||||||||||||||||||||
Total noninterest expense | 49,054 | 39,838 | 30,747 | 29,922 | 29,219 | 88,892 | 58,362 | ||||||||||||||||||||
Less: Other expenses related to non-core acquired loans | 103 | 103 | 40 | 12 | (229 | ) | 206 | (215 | ) | ||||||||||||||||||
Less: Facilities disposal | — | — | — | — | 239 | — | 239 | ||||||||||||||||||||
Less: Merger related expenses | 10,306 | 7,270 | 1,271 | — | — | 17,576 | — | ||||||||||||||||||||
Less: Non-recurring excise tax | — | — | — | 682 | — | — | — | ||||||||||||||||||||
Core noninterest expense | 38,645 | 32,465 | 29,436 | 29,228 | 29,209 | 71,110 | 58,338 | ||||||||||||||||||||
Core efficiency ratio | 53.30 | % | 54.06 | % | 49.77 | % | 52.23 | % | 52.36 | % | 53.65 | % | 53.18 | % | |||||||||||||
NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) | |||||||||||||||||||||||||||
Net interest income | $ | 62,109 | $ | 52,595 | $ | 50,786 | $ | 48,299 | $ | 47,254 | $ | 114,704 | $ | 93,640 | |||||||||||||
Less: Incremental accretion income | 910 | 1,157 | 2,109 | 535 | 291 | 2,067 | 1,057 | ||||||||||||||||||||
Core net interest income | $ | 61,199 | $ | 51,438 | $ | 48,677 | $ | 47,764 | $ | 46,963 | $ | 112,637 | $ | 92,583 | |||||||||||||
Average earning assets | $ | 6,453,005 | $ | 5,510,489 | $ | 5,118,319 | $ | 5,072,573 | $ | 5,023,607 | $ | 5,984,351 | $ | 4,986,447 | |||||||||||||
Reported net interest margin | 3.86 | % | 3.87 | % | 3.94 | % | 3.78 | % | 3.77 | % | 3.87 | % | 3.79 | % | |||||||||||||
Core net interest margin | 3.80 | 3.79 | 3.77 | 3.74 | 3.75 | 3.80 | 3.74 |
At the Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | ||||||||||||||
SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS | |||||||||||||||||||
Shareholders’ equity | $ | 825,501 | $ | 797,835 | $ | 603,804 | $ | 586,837 | $ | 574,084 | |||||||||
Less: Goodwill | 211,251 | 207,632 | 117,345 | 117,345 | 117,345 | ||||||||||||||
Less: Intangible assets | 29,201 | 31,048 | 8,553 | 9,148 | 9,768 | ||||||||||||||
Tangible common equity | $ | 585,049 | $ | 559,155 | $ | 477,906 | $ | 460,344 | $ | 446,971 | |||||||||
Total assets | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | $ | 5,509,924 | |||||||||
Less: Goodwill | 211,251 | 207,632 | 117,345 | 117,345 | 117,345 | ||||||||||||||
Less: Intangible assets | 29,201 | 31,048 | 8,553 | 9,148 | 9,768 | ||||||||||||||
Tangible assets | $ | 6,941,403 | $ | 6,694,077 | $ | 5,519,764 | $ | 5,391,046 | $ | 5,382,811 | |||||||||
Tangible common equity to tangible assets | 8.43 | % | 8.35 | % | 8.66 | % | 8.54 | % | 8.30 | % |
For the Quarter ended | |||||||||||
($ in thousands, except per share data) | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | ||||||||
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY | |||||||||||
Average shareholder’s equity | $ | 813,106 | $ | 662,454 | $ | 568,555 | |||||
Less average goodwill | 211,251 | 141,422 | 117,345 | ||||||||
Less average intangible assets | 29,965 | 14,472 | 10,074 | ||||||||
Average tangible common equity | 571,890 | 506,560 | 441,136 | ||||||||
For the Quarter ended | |||||||||||
($ in thousands, except per share data) | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | ||||||||
IMPACT OF MERGER-RELATED EXPENSES | |||||||||||
Net income - GAAP | $ | 18,424 | $ | 16,156 | $ | 22,251 | |||||
Merger related expenses | 10,306 | 7,270 | — | ||||||||
Related tax effect | (2,331 | ) | (1,535 | ) | — | ||||||
Adjusted net income - Non-GAAP | $ | 26,399 | $ | 21,891 | $ | 22,251 | |||||
Average diluted common shares | $ | 26,940 | $ | 24,083 | $ | 23,318 | |||||
EPS - GAAP net income | 0.68 | 0.67 | 0.95 | ||||||||
EPS - Adjusted net income | 0.98 | 0.91 | 0.95 | ||||||||
Average assets | $ | 7,057,605 | $ | 5,956,086 | $ | 5,415,151 | |||||
ROAA - GAAP net income | 1.05 | % | 1.10 | % | 1.65 | % | |||||
ROAA - Adjusted net income | 1.50 | 1.49 | 1.65 | ||||||||
Average shareholder’s equity | $ | 813,106 | $ | 662,454 | $ | 568,555 | |||||
ROAE - GAAP net income | 9.09 | % | 9.89 | % | 15.70 | % | |||||
ROAE - Adjusted net income | 13.02 | 13.40 | 15.70 | ||||||||
Average tangible common equity | $ | 571,890 | $ | 506,560 | $ | 441,136 | |||||
ROATCE - GAAP net income | 12.92 | % | 12.93 | % | 20.23 | % | |||||
ROATCE - Adjusted net income | 18.52 | 17.53 | 20.23 |