(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
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 | ||
ENTERPRISE FINANCIAL SERVICES CORP | ||||
Date: | October 21, 2019 | By: | /s/ Troy R. Dumlao | |
Troy R. Dumlao | ||||
Senior Vice President and Chief Accounting Officer | ||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document |
• | Net income of $29.1 million, $1.08 per diluted share |
• | Net interest margin (tax equivalent) of 3.81% |
• | Return on average assets (“ROAA”) of 1.60% |
• | Loans increased $78.5 million, or 6% annualized |
• | Deposits increased $65.0 million, or 5% annualized |
• | Repurchase of 302,756 shares at an average price of $39.03 per share |
Quarter ended | |||||||||||||||||||
($ in thousands) | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||
Net interest income | $ | 63,046 | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | |||||||||
Less: Incremental accretion income2 | 2,140 | 910 | 1,157 | 2,109 | 535 | ||||||||||||||
Core net interest income3 | $ | 60,906 | $ | 60,805 | $ | 51,186 | $ | 48,484 | $ | 47,558 | |||||||||
Net interest margin (tax equivalent) | 3.81 | % | 3.86 | % | 3.87 | % | 3.94 | % | 3.78 | % | |||||||||
Core net interest margin3 (tax equivalent) | 3.69 | 3.80 | 3.79 | 3.77 | 3.74 | ||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 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* | $ | 5,178,009 | $ | 69,193 | 5.30 | % | $ | 5,095,181 | $ | 68,830 | 5.42 | % | $ | 4,252,525 | $ | 54,968 | 5.13 | % | ||||||||||||||
Debt and equity investments* | 1,312,860 | 9,610 | 2.90 | 1,246,529 | 9,152 | 2.95 | 755,129 | 5,154 | 2.71 | |||||||||||||||||||||||
Short-term investments | 113,214 | 572 | 2.00 | 111,291 | 703 | 2.53 | 64,919 | 306 | 1.87 | |||||||||||||||||||||||
Total earning assets | 6,604,083 | 79,375 | 4.77 | 6,453,001 | 78,685 | 4.89 | 5,072,573 | 60,428 | 4.73 | |||||||||||||||||||||||
Noninterest-earning assets | 618,274 | 604,604 | 398,931 | |||||||||||||||||||||||||||||
Total assets | $ | 7,222,357 | $ | 7,057,605 | $ | 5,471,504 | ||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,356,328 | $ | 2,048 | 0.60 | % | $ | 1,384,090 | $ | 2,134 | 0.62 | % | $ | 758,621 | $ | 799 | 0.42 | % | ||||||||||||||
Money market accounts | 1,639,603 | 6,959 | 1.68 | 1,576,333 | 6,996 | 1.78 | 1,523,822 | 5,423 | 1.41 | |||||||||||||||||||||||
Savings | 548,109 | 232 | 0.17 | 562,503 | 231 | 0.16 | 208,057 | 157 | 0.30 | |||||||||||||||||||||||
Certificates of deposit | 820,943 | 3,970 | 1.92 | 815,138 | 3,758 | 1.85 | 678,214 | 2,878 | 1.68 | |||||||||||||||||||||||
Total interest-bearing deposits | 4,364,983 | 13,209 | 1.20 | 4,338,064 | 13,119 | 1.21 | 3,168,714 | 9,257 | 1.16 | |||||||||||||||||||||||
Subordinated debentures | 141,136 | 1,956 | 5.50 | 141,059 | 1,958 | 5.57 | 118,134 | 1,483 | 4.98 | |||||||||||||||||||||||
FHLB advances | 378,207 | 2,203 | 2.31 | 263,384 | 1,696 | 2.58 | 311,522 | 1,729 | 2.20 | |||||||||||||||||||||||
Other borrowed funds | 193,055 | 664 | 1.36 | 204,375 | 713 | 1.40 | 160,151 | 195 | 0.48 | |||||||||||||||||||||||
Total interest-bearing liabilities | 5,077,381 | 18,032 | 1.41 | 4,946,882 | 17,486 | 1.42 | 3,758,521 | 12,664 | 1.34 | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 1,232,360 | 1,244,008 | 1,086,809 | |||||||||||||||||||||||||||||
Other liabilities | 68,642 | 53,609 | 39,409 | |||||||||||||||||||||||||||||
Total liabilities | 6,378,383 | 6,244,499 | 4,884,739 | |||||||||||||||||||||||||||||
Shareholders' equity | 843,974 | 813,106 | 586,765 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 7,222,357 | $ | 7,057,605 | $ | 5,471,504 | ||||||||||||||||||||||||||
Core net interest income3 | 61,343 | 61,199 | 47,764 | |||||||||||||||||||||||||||||
Core net interest margin3 | 3.69 | % | 3.80 | % | 3.74 | % | ||||||||||||||||||||||||||
Incremental accretion on non-core acquired loans | 2,140 | 910 | 535 | |||||||||||||||||||||||||||||
Total net interest income | $ | 63,483 | $ | 62,109 | $ | 48,299 | ||||||||||||||||||||||||||
Net interest margin | 3.81 | % | 3.86 | % | 3.78 | % | ||||||||||||||||||||||||||
* 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 each of the three months ended September 30, 2019 and June 30, 2019, and $0.2 million for the three months ended September 30, 2018. |
Quarter ended | |||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||
($ in thousands) | September 30, 2019 | June 30, 2019 | Trinityb | Legacy EFSCb | Consolidated | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||
C&I - general | $ | 1,174,569 | $ | 1,103,908 | $ | 65,122 | $ | 1,063,633 | $ | 1,128,755 | $ | 995,491 | $ | 969,898 | |||||||||||||
CRE investor owned - general | 1,281,332 | 1,235,596 | 304,615 | 878,856 | 1,183,471 | 862,423 | 846,322 | ||||||||||||||||||||
CRE owner occupied - general | 566,219 | 591,401 | 91,758 | 484,268 | 576,026 | 496,835 | 482,146 | ||||||||||||||||||||
Enterprise value lendinga | 417,521 | 445,981 | — | 439,500 | 439,500 | 465,992 | 442,439 | ||||||||||||||||||||
Life insurance premium financinga | 468,051 | 465,777 | — | 440,693 | 440,693 | 417,950 | 378,826 | ||||||||||||||||||||
Residential real estate - general | 386,174 | 409,200 | 137,487 | 295,069 | 432,556 | 304,671 | 314,315 | ||||||||||||||||||||
Construction and land development - general | 403,590 | 376,597 | 70,251 | 274,956 | 345,207 | 310,832 | 312,617 | ||||||||||||||||||||
Tax creditsa | 265,626 | 268,405 | — | 235,454 | 235,454 | 262,735 | 256,666 | ||||||||||||||||||||
Agriculture | 136,249 | 131,671 | — | 126,088 | 126,088 | 136,188 | 138,005 | ||||||||||||||||||||
Consumer and other - general | 128,683 | 120,961 | 12,835 | 96,492 | 109,327 | 96,884 | 126,196 | ||||||||||||||||||||
Total Loans | $ | 5,228,014 | $ | 5,149,497 | $ | 682,068 | $ | 4,335,009 | $ | 5,017,077 | $ | 4,350,001 | $ | 4,267,430 | |||||||||||||
Total loan yield | 5.47 | % | 5.49 | % | 5.50 | % | 5.44 | % | 5.18 | % | |||||||||||||||||
Total C&I loans to total loans | 44 | % | 44 | % | 44 | % | 49 | % | 48 | % | |||||||||||||||||
Variable interest rate loans to total loans | 60 | % | 60 | % | 60 | % | 62 | % | 62 | % | |||||||||||||||||
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. |
Quarter ended | |||||||||||||||||||
($ in thousands) | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||
Nonperforming loans | $ | 15,569 | $ | 19,842 | $ | 9,607 | $ | 16,745 | $ | 17,044 | |||||||||
Other real estate | 8,498 | 10,531 | 6,804 | 469 | 408 | ||||||||||||||
Nonperforming assets | $ | 24,067 | $ | 30,373 | $ | 16,411 | $ | 17,214 | $ | 17,452 | |||||||||
Nonperforming loans to total loans | 0.30 | % | 0.39 | % | 0.19 | % | 0.38 | % | 0.40 | % | |||||||||
Nonperforming assets to total assets | 0.33 | 0.42 | 0.24 | 0.30 | 0.32 | ||||||||||||||
Allowance for loan losses to total loans | 0.85 | 0.85 | 0.86 | 1.00 | 1.04 | ||||||||||||||
Net charge-offs | $ | 1,070 | $ | 970 | $ | 1,826 | $ | 2,822 | $ | 2,447 |
Quarter ended | |||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||
($ in thousands) | September 30, 2019 | June 30, 2019 | Trinitya | Legacy EFSCa | Consolidated | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||
Noninterest-bearing accounts | $ | 1,295,450 | $ | 1,181,577 | $ | 169,344 | $ | 1,017,164 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | |||||||||||||
Interest-bearing transaction accounts | 1,307,855 | 1,392,586 | 401,257 | 988,569 | 1,389,826 | 1,037,684 | 743,351 | ||||||||||||||||||||
Money market and savings accounts | 2,201,052 | 2,162,605 | 390,192 | 1,765,839 | 2,156,031 | 1,765,154 | 1,730,762 | ||||||||||||||||||||
Brokered certificates of deposit | 209,754 | 213,138 | — | 180,788 | 180,788 | 198,981 | 202,323 | ||||||||||||||||||||
Other certificates of deposit | 610,269 | 609,432 | 133,556 | 490,404 | 623,960 | 485,448 | 471,914 | ||||||||||||||||||||
Total deposit portfolio | $ | 5,624,380 | $ | 5,559,338 | $ | 1,094,349 | $ | 4,442,764 | $ | 5,537,113 | $ | 4,587,985 | $ | 4,210,476 | |||||||||||||
Noninterest-bearing deposits to total deposits | 23.0 | % | 21.3 | % | 15.5 | % | 22.9 | % | 21.4 | % | 24.0 | % | 25.2 | % | |||||||||||||
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. |
Quarter ended | ||||||||||||||
Percent | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | |||||||||
Total risk-based capital to risk-weighted assets | 12.72 | % | 12.62 | % | 12.86 | % | 13.02 | % | 12.94 | % | ||||
Tier 1 capital to risk weighted assets | 11.17 | 11.06 | 11.25 | 11.14 | 11.03 | |||||||||
Common equity tier 1 capital to risk-weighted assets | 9.64 | 9.51 | 9.64 | 9.79 | 9.66 | |||||||||
Tangible common equity to tangible assets5 | 8.54 | 8.43 | 8.35 | 8.66 | 8.54 | |||||||||
5 Tangible common equity to tangible assets is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables. |
Quarter ended | Nine Months ended | ||||||||||||||||||||||||||
(in thousands, except per share data) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Sep 30, 2019 | Sep 30, 2018 | ||||||||||||||||||||
EARNINGS SUMMARY | |||||||||||||||||||||||||||
Net interest income | $ | 63,046 | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | $ | 177,104 | $ | 141,312 | |||||||||||||
Provision for loan losses | 1,833 | 1,722 | 1,476 | 2,120 | 2,263 | 5,031 | 4,524 | ||||||||||||||||||||
Noninterest income | 13,564 | 11,964 | 9,230 | 10,702 | 8,410 | 34,758 | 27,645 | ||||||||||||||||||||
Noninterest expense | 38,239 | 49,054 | 39,838 | 30,747 | 29,922 | 127,131 | 88,284 | ||||||||||||||||||||
Income before income tax expense | 36,538 | 22,903 | 20,259 | 28,428 | 24,318 | 79,700 | 76,149 | ||||||||||||||||||||
Income tax expense | 7,469 | 4,479 | 4,103 | 4,899 | 1,802 | 16,051 | 10,461 | ||||||||||||||||||||
Net income | $ | 29,069 | $ | 18,424 | $ | 16,156 | $ | 23,529 | $ | 22,516 | $ | 63,649 | $ | 65,688 | |||||||||||||
Diluted earnings per share | $ | 1.08 | $ | 0.68 | $ | 0.67 | $ | 1.02 | $ | 0.97 | $ | 2.45 | $ | 2.81 | |||||||||||||
Return on average assets | 1.60 | % | 1.05 | % | 1.10 | % | 1.69 | % | 1.63 | % | 1.26 | % | 1.62 | % | |||||||||||||
Return on average common equity | 13.66 | 9.09 | 9.89 | 15.61 | 15.22 | 11.00 | 15.41 | ||||||||||||||||||||
Return on average tangible common equity1 | 19.08 | 12.92 | 12.93 | 19.79 | 19.42 | 15.16 | 19.85 | ||||||||||||||||||||
Net interest margin (tax equivalent) | 3.81 | 3.86 | 3.87 | 3.94 | 3.78 | 3.85 | 3.78 | ||||||||||||||||||||
Core net interest margin (tax equivalent)1 | 3.69 | 3.80 | 3.79 | 3.77 | 3.74 | 3.76 | 3.74 | ||||||||||||||||||||
Efficiency ratio | 49.91 | 66.58 | 64.70 | 50.16 | 52.96 | 60.01 | 52.25 | ||||||||||||||||||||
Core efficiency ratio1 | 51.73 | 53.30 | 54.06 | 49.77 | 52.23 | 52.96 | 52.86 | ||||||||||||||||||||
Total assets | $ | 7,346,791 | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | |||||||||||||||||
Total average assets | 7,222,357 | 7,057,605 | 5,956,086 | 5,518,740 | 5,471,504 | $ | 6,509,888 | $ | 5,409,404 | ||||||||||||||||||
Total deposits | 5,624,380 | 5,559,338 | 5,537,113 | 4,587,985 | 4,210,476 | ||||||||||||||||||||||
Total average deposits | 5,597,343 | 5,582,072 | 4,699,490 | 4,434,634 | 4,255,523 | 5,143,219 | 4,203,861 | ||||||||||||||||||||
Period end common shares outstanding | 26,613 | 26,906 | 26,878 | 22,812 | 23,092 | ||||||||||||||||||||||
Dividends per common share | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.13 | $ | 0.12 | $ | 0.45 | $ | 0.34 | |||||||||||||
Tangible book value per common share1 | $ | 22.82 | $ | 21.74 | $ | 20.80 | $ | 20.95 | $ | 19.94 | |||||||||||||||||
Tangible common equity to tangible assets1 | 8.54 | % | 8.43 | % | 8.35 | % | 8.66 | % | 8.54 | % | |||||||||||||||||
Total risk-based capital to risk-weighted assets | 12.72 | 12.62 | 12.86 | 13.02 | 12.94 | ||||||||||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
Quarter ended | Nine Months ended | ||||||||||||||||||||||||||
($ in thousands, except per share data) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Sep 30, 2019 | Sep 30, 2018 | ||||||||||||||||||||
INCOME STATEMENTS | |||||||||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||||||
Total interest income | $ | 81,078 | $ | 79,201 | $ | 67,617 | $ | 64,002 | $ | 60,757 | $ | 227,896 | $ | 173,800 | |||||||||||||
Total interest expense | 18,032 | 17,486 | 15,274 | 13,409 | 12,664 | 50,792 | 32,488 | ||||||||||||||||||||
Net interest income | 63,046 | 61,715 | 52,343 | 50,593 | 48,093 | 177,104 | 141,312 | ||||||||||||||||||||
Provision for loan losses | 1,833 | 1,722 | 1,476 | 2,120 | 2,263 | 5,031 | 4,524 | ||||||||||||||||||||
Net interest income after provision for loan losses | 61,213 | 59,993 | 50,867 | 48,473 | 45,830 | 172,073 | 136,788 | ||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||
Deposit service charges | 3,246 | 3,366 | 2,935 | 2,894 | 2,997 | 9,547 | 8,855 | ||||||||||||||||||||
Wealth management revenue | 2,661 | 2,661 | 1,992 | 1,974 | 2,012 | 7,314 | 6,267 | ||||||||||||||||||||
Card services revenue | 2,494 | 2,461 | 1,790 | 1,760 | 1,760 | 6,745 | 4,926 | ||||||||||||||||||||
Tax credit income | 1,238 | 572 | 158 | 2,312 | 192 | 1,968 | 508 | ||||||||||||||||||||
Gain on sale of investment securities | 337 | — | — | — | — | 337 | 9 | ||||||||||||||||||||
Other income | 3,588 | 2,904 | 2,355 | 1,762 | 1,449 | 8,847 | 7,080 | ||||||||||||||||||||
Total noninterest income | 13,564 | 11,964 | 9,230 | 10,702 | 8,410 | 34,758 | 27,645 | ||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Employee compensation and benefits | 20,845 | 20,687 | 19,352 | 16,669 | 16,297 | 60,884 | 49,370 | ||||||||||||||||||||
Occupancy | 3,179 | 3,188 | 2,637 | 2,408 | 2,394 | 9,004 | 7,142 | ||||||||||||||||||||
Merger-related expenses | 393 | 10,306 | 7,270 | 1,271 | — | 17,969 | — | ||||||||||||||||||||
Other | 13,822 | 14,873 | 10,579 | 10,399 | 11,231 | 39,274 | 31,772 | ||||||||||||||||||||
Total noninterest expense | 38,239 | 49,054 | 39,838 | 30,747 | 29,922 | 127,131 | 88,284 | ||||||||||||||||||||
Income before income tax expense | 36,538 | 22,903 | 20,259 | 28,428 | 24,318 | 79,700 | 76,149 | ||||||||||||||||||||
Income tax expense | 7,469 | 4,479 | 4,103 | 4,899 | 1,802 | 16,051 | 10,461 | ||||||||||||||||||||
Net income | $ | 29,069 | $ | 18,424 | $ | 16,156 | $ | 23,529 | $ | 22,516 | $ | 63,649 | $ | 65,688 | |||||||||||||
Basic earnings per share | $ | 1.09 | $ | 0.69 | $ | 0.68 | $ | 1.02 | $ | 0.97 | $ | 2.46 | $ | 2.84 | |||||||||||||
Diluted earnings per share | 1.08 | 0.68 | 0.67 | 1.02 | 0.97 | 2.45 | 2.81 |
Quarter ended | |||||||||||||||||||
($ in thousands) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | ||||||||||||||
BALANCE SHEETS | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 153,730 | $ | 106,835 | $ | 85,578 | $ | 91,511 | $ | 78,119 | |||||||||
Interest-earning deposits | 106,747 | 85,315 | 139,389 | 108,226 | 81,351 | ||||||||||||||
Debt and equity investments | 1,354,986 | 1,328,767 | 1,198,413 | 813,702 | 775,344 | ||||||||||||||
Loans held for sale | 6,281 | 1,437 | 654 | 392 | 738 | ||||||||||||||
Loans | 5,228,014 | 5,149,497 | 5,017,077 | 4,350,001 | 4,267,430 | ||||||||||||||
Less: Allowance for loan losses | 44,555 | 43,822 | 43,095 | 43,476 | 44,186 | ||||||||||||||
Total loans, net | 5,183,459 | 5,105,675 | 4,973,982 | 4,306,525 | 4,223,244 | ||||||||||||||
Fixed assets, net | 59,216 | 58,888 | 60,301 | 32,109 | 32,354 | ||||||||||||||
Goodwill | 211,251 | 211,251 | 207,632 | 117,345 | 117,345 | ||||||||||||||
Intangible assets, net | 27,626 | 29,201 | 31,048 | 8,553 | 9,148 | ||||||||||||||
Other assets | 243,495 | 254,486 | 235,760 | 167,299 | 199,896 | ||||||||||||||
Total assets | $ | 7,346,791 | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,295,450 | $ | 1,181,577 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | |||||||||
Interest-bearing deposits | 4,328,930 | 4,377,761 | 4,350,605 | 3,487,267 | 3,148,350 | ||||||||||||||
Total deposits | 5,624,380 | 5,559,338 | 5,537,113 | 4,587,985 | 4,210,476 | ||||||||||||||
Subordinated debentures | 141,179 | 141,100 | 140,668 | 118,156 | 118,144 | ||||||||||||||
FHLB advances | 461,426 | 389,446 | 180,466 | 70,000 | 401,000 | ||||||||||||||
Other borrowings | 199,634 | 198,104 | 212,171 | 223,450 | 161,795 | ||||||||||||||
Other liabilities | 74,077 | 68,366 | 64,504 | 42,267 | 39,287 | ||||||||||||||
Total liabilities | 6,500,696 | 6,356,354 | 6,134,922 | 5,041,858 | 4,930,702 | ||||||||||||||
Shareholders’ equity | 846,095 | 825,501 | 797,835 | 603,804 | 586,837 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,346,791 | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 |
Nine Months ended | |||||||||||||||||||||
September 30, 2019 | September 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* | $ | 4,930,635 | $ | 197,996 | 5.37 | % | $ | 4,205,585 | $ | 157,548 | 5.01 | % | |||||||||
Debt and equity investments* | 1,153,632 | 25,055 | 2.90 | 746,470 | 14,510 | 2.60 | |||||||||||||||
Short-term investments | 108,930 | 1,722 | 2.11 | 63,416 | 777 | 1.64 | |||||||||||||||
Total earning assets | 6,193,197 | 224,773 | 4.85 | 5,015,471 | 172,835 | 4.61 | |||||||||||||||
Noninterest-earning assets | 556,791 | 393,933 | |||||||||||||||||||
Total assets | $ | 6,749,988 | $ | 5,409,404 | |||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,273,591 | $ | 5,972 | 0.63 | % | $ | 814,679 | $ | 2,422 | 0.40 | % | |||||||||
Money market accounts | 1,579,702 | 20,470 | 1.73 | 1,470,177 | 13,221 | 1.20 | |||||||||||||||
Savings | 471,024 | 646 | 0.18 | 206,213 | 429 | 0.28 | |||||||||||||||
Certificates of deposit | 783,182 | 11,060 | 1.89 | 638,889 | 7,115 | 1.49 | |||||||||||||||
Total interest-bearing deposits | 4,107,499 | 38,148 | 1.24 | 3,129,958 | 23,187 | 0.99 | |||||||||||||||
Subordinated debentures | 135,512 | 5,562 | 5.49 | 118,123 | 4,305 | 4.87 | |||||||||||||||
FHLB advances | 286,267 | 5,297 | 2.47 | 302,937 | 4,435 | 1.96 | |||||||||||||||
Other borrowed funds | 199,842 | 1,785 | 1.19 | 178,245 | 561 | 0.42 | |||||||||||||||
Total interest-bearing liabilities | 4,729,120 | 50,792 | 1.44 | 3,729,263 | 32,488 | 1.16 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 1,188,758 | 1,073,903 | |||||||||||||||||||
Other liabilities | 58,267 | 36,323 | |||||||||||||||||||
Total liabilities | 5,976,145 | 4,839,489 | |||||||||||||||||||
Shareholders' equity | 773,843 | 569,915 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,749,988 | $ | 5,409,404 | |||||||||||||||||
Core net interest income1 | 173,981 | 140,347 | |||||||||||||||||||
Core net interest margin1 | 3.76 | % | 3.74 | % | |||||||||||||||||
Incremental accretion on non-core acquired loans | 4,207 | 1,592 | |||||||||||||||||||
Total net interest income | $ | 178,188 | $ | 141,939 | |||||||||||||||||
Net interest margin | 3.85 | % | 3.78 | % | |||||||||||||||||
* Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate. The tax-equivalent adjustments were $1.1 million and $0.6 million for the nine months ended September 30, 2019 and 2018, respectively. |
Quarter ended | |||||||||||||||||||
($ in thousands) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | ||||||||||||||
LOAN PORTFOLIO | |||||||||||||||||||
Commercial and industrial | $ | 2,303,495 | $ | 2,265,480 | $ | 2,227,050 | $ | 2,123,167 | $ | 2,035,852 | |||||||||
Commercial real estate | 1,967,888 | 1,940,958 | 1,870,040 | 1,481,834 | 1,450,184 | ||||||||||||||
Construction real estate | 433,486 | 404,557 | 369,365 | 334,645 | 332,026 | ||||||||||||||
Residential real estate | 386,173 | 409,200 | 432,902 | 305,026 | 314,676 | ||||||||||||||
Consumer and other | 136,972 | 129,302 | 117,720 | 105,329 | 134,692 | ||||||||||||||
Total loans | $ | 5,228,014 | $ | 5,149,497 | $ | 5,017,077 | $ | 4,350,001 | $ | 4,267,430 | |||||||||
DEPOSIT PORTFOLIO | |||||||||||||||||||
Noninterest-bearing accounts | $ | 1,295,450 | $ | 1,181,577 | $ | 1,186,508 | $ | 1,100,718 | $ | 1,062,126 | |||||||||
Interest-bearing transaction accounts | 1,307,855 | 1,392,586 | 1,389,826 | 1,037,684 | 743,351 | ||||||||||||||
Money market and savings accounts | 2,201,052 | 2,162,605 | 2,156,031 | 1,765,154 | 1,730,762 | ||||||||||||||
Brokered certificates of deposit | 209,754 | 213,138 | 180,788 | 198,981 | 202,323 | ||||||||||||||
Other certificates of deposit | 610,269 | 609,432 | 623,960 | 485,448 | 471,914 | ||||||||||||||
Total deposit portfolio | $ | 5,624,380 | $ | 5,559,338 | $ | 5,537,113 | $ | 4,587,985 | $ | 4,210,476 | |||||||||
AVERAGE BALANCES | |||||||||||||||||||
Total loans | $ | 5,178,009 | $ | 5,095,181 | $ | 4,511,387 | $ | 4,272,132 | $ | 4,252,524 | |||||||||
Debt and equity investments | 1,312,860 | 1,246,529 | 896,936 | 769,461 | 755,129 | ||||||||||||||
Interest-earning assets | 6,604,083 | 6,453,001 | 5,510,489 | 5,118,319 | 5,072,573 | ||||||||||||||
Total assets | 7,222,357 | 7,057,605 | 5,956,086 | 5,518,740 | 5,471,504 | ||||||||||||||
Deposits | 5,597,343 | 5,582,072 | 4,699,490 | 4,434,634 | 4,255,523 | ||||||||||||||
Shareholders’ equity | 843,974 | 813,106 | 662,454 | 597,864 | 586,765 | ||||||||||||||
Tangible common equity1 | 604,331 | 571,890 | 506,560 | 471,678 | 459,975 | ||||||||||||||
YIELDS (tax equivalent) | |||||||||||||||||||
Total loans | 5.47 | % | 5.49 | % | 5.50 | % | 5.44 | % | 5.18 | % | |||||||||
Debt and equity investments | 2.90 | 2.95 | 2.84 | 2.73 | 2.71 | ||||||||||||||
Interest-earning assets | 4.90 | 4.95 | 4.99 | 4.98 | 4.77 | ||||||||||||||
Interest-bearing deposits | 1.20 | 1.21 | 1.33 | 1.27 | 1.16 | ||||||||||||||
Total deposits | 0.94 | 0.94 | 1.02 | 0.95 | 0.86 | ||||||||||||||
Subordinated debentures | 5.50 | 5.57 | 5.38 | 5.01 | 4.98 | ||||||||||||||
FHLB advances and other borrowed funds | 1.99 | 2.07 | 1.75 | 1.60 | 1.62 | ||||||||||||||
Interest-bearing liabilities | 1.41 | 1.42 | 1.49 | 1.42 | 1.34 | ||||||||||||||
Net interest margin | 3.81 | 3.86 | 3.87 | 3.94 | 3.78 |
Quarter ended | |||||||||||||||||||
(in thousands, except %, per share data and shares) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | ||||||||||||||
ASSET QUALITY | |||||||||||||||||||
Net charge-offs | $ | 1,070 | $ | 970 | $ | 1,826 | $ | 2,822 | $ | 2,447 | |||||||||
Nonperforming loans | 15,569 | 19,842 | 9,607 | 16,745 | 17,044 | ||||||||||||||
Classified assets | 93,984 | 91,715 | 79,750 | 70,126 | 73,704 | ||||||||||||||
Nonperforming loans to total loans | 0.30 | % | 0.39 | % | 0.19 | % | 0.38 | % | 0.40 | % | |||||||||
Nonperforming assets to total assets | 0.33 | 0.42 | 0.24 | 0.30 | 0.32 | ||||||||||||||
Allowance for loan losses to total loans | 0.85 | 0.85 | 0.86 | 1.00 | 1.04 | ||||||||||||||
Allowance for loan losses to nonperforming loans | 286.2 | 220.9 | 448.6 | 259.6 | 259.3 | ||||||||||||||
Net charge-offs to average loans (annualized) | 0.08 | 0.08 | 0.16 | 0.26 | 0.23 | ||||||||||||||
WEALTH MANAGEMENT | |||||||||||||||||||
Trust assets under management | $ | 1,583,260 | $ | 1,627,050 | $ | 1,587,627 | $ | 1,119,329 | $ | 1,174,798 | |||||||||
Trust assets under administration | 2,404,950 | 2,428,551 | 2,405,673 | 1,811,512 | 1,984,859 | ||||||||||||||
MARKET DATA | |||||||||||||||||||
Book value per common share | $ | 31.79 | $ | 30.68 | $ | 29.68 | $ | 26.47 | $ | 25.41 | |||||||||
Tangible book value per common share1 | 22.82 | 21.74 | 20.80 | 20.95 | 19.94 | ||||||||||||||
Market value per share | 40.75 | 41.60 | 40.77 | 37.63 | 53.05 | ||||||||||||||
Period end common shares outstanding | 26,613 | 26,906 | 26,878 | 22,812 | 23,092 | ||||||||||||||
Average basic common shares | 26,778 | 26,887 | 23,927 | 23,014 | 23,148 | ||||||||||||||
Average diluted common shares | 26,868 | 26,940 | 24,083 | 23,170 | 23,329 | ||||||||||||||
CAPITAL | |||||||||||||||||||
Total risk-based capital to risk-weighted assets | 12.72 | % | 12.62 | % | 12.86 | % | 13.02 | % | 12.94 | % | |||||||||
Tier 1 capital to risk-weighted assets | 11.17 | 11.06 | 11.25 | 11.14 | 11.03 | ||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 9.64 | 9.51 | 9.64 | 9.79 | 9.66 | ||||||||||||||
Tangible common equity to tangible assets1 | 8.54 | 8.43 | 8.35 | 8.66 | 8.54 | ||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
Quarter ended | Nine Months ended | ||||||||||||||||||||||||||
($ in thousands) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Sep 30, 2019 | Sep 30, 2018 | ||||||||||||||||||||
CORE PERFORMANCE MEASURES | |||||||||||||||||||||||||||
Net interest income | $ | 63,046 | $ | 61,715 | $ | 52,343 | $ | 50,593 | $ | 48,093 | $ | 177,104 | $ | 141,312 | |||||||||||||
Less: Incremental accretion income | 2,140 | 910 | 1,157 | 2,109 | 535 | 4,207 | 1,592 | ||||||||||||||||||||
Core net interest income | 60,906 | 60,805 | 51,186 | 48,484 | 47,558 | 172,897 | 139,720 | ||||||||||||||||||||
Total noninterest income | 13,564 | 11,964 | 9,230 | 10,702 | 8,410 | 34,758 | 27,645 | ||||||||||||||||||||
Less: Other income from non-core acquired assets | 1,001 | 2 | 365 | 10 | 7 | 1,368 | 1,038 | ||||||||||||||||||||
Less: Gain on sale of investment securities | 337 | — | — | — | — | 337 | 9 | ||||||||||||||||||||
Less: Other non-core income | — | 266 | — | 26 | — | 266 | 649 | ||||||||||||||||||||
Core noninterest income | 12,226 | 11,696 | 8,865 | 10,666 | 8,403 | 32,787 | 25,949 | ||||||||||||||||||||
Total core revenue | 73,132 | 72,501 | 60,051 | 59,150 | 55,961 | 205,684 | 165,669 | ||||||||||||||||||||
Total noninterest expense | 38,239 | 49,054 | 39,838 | 30,747 | 29,922 | 127,131 | 88,284 | ||||||||||||||||||||
Less: Other expenses related to non-core acquired loans | 18 | 103 | 103 | 40 | 12 | 224 | (203 | ) | |||||||||||||||||||
Less: Facilities disposal | — | — | — | — | — | — | 239 | ||||||||||||||||||||
Less: Merger related expenses | 393 | 10,306 | 7,270 | 1,271 | — | 17,969 | — | ||||||||||||||||||||
Less: Non-recurring excise tax | — | — | — | — | 682 | — | 682 | ||||||||||||||||||||
Core noninterest expense | 37,828 | 38,645 | 32,465 | 29,436 | 29,228 | 108,938 | 87,566 | ||||||||||||||||||||
Core efficiency ratio | 51.73 | % | 53.30 | % | 54.06 | % | 49.77 | % | 52.23 | % | 52.96 | % | 52.86 | % | |||||||||||||
NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) | |||||||||||||||||||||||||||
Net interest income | $ | 63,483 | $ | 62,109 | $ | 52,595 | $ | 50,786 | $ | 48,299 | $ | 178,187 | $ | 141,939 | |||||||||||||
Less: Incremental accretion income | 2,140 | 910 | 1,157 | 2,109 | 535 | 4,207 | 1,592 | ||||||||||||||||||||
Core net interest income | $ | 61,343 | $ | 61,199 | $ | 51,438 | $ | 48,677 | $ | 47,764 | $ | 173,980 | $ | 140,347 | |||||||||||||
Average earning assets | $ | 6,604,083 | $ | 6,453,005 | $ | 5,510,489 | $ | 5,118,319 | $ | 5,072,573 | $ | 6,193,197 | $ | 5,015,471 | |||||||||||||
Reported net interest margin | 3.81 | % | 3.86 | % | 3.87 | % | 3.94 | % | 3.78 | % | 3.85 | % | 3.78 | % | |||||||||||||
Core net interest margin | 3.69 | 3.80 | 3.79 | 3.77 | 3.74 | 3.76 | 3.74 |
Quarter ended | |||||||||||||||||||
($ in thousands) | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | ||||||||||||||
SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS | |||||||||||||||||||
Shareholders’ equity | $ | 846,095 | $ | 825,501 | $ | 797,835 | $ | 603,804 | $ | 586,837 | |||||||||
Less: Goodwill | 211,251 | 211,251 | 207,632 | 117,345 | 117,345 | ||||||||||||||
Less: Intangible assets | 27,626 | 29,201 | 31,048 | 8,553 | 9,148 | ||||||||||||||
Tangible common equity | $ | 607,218 | $ | 585,049 | $ | 559,155 | $ | 477,906 | $ | 460,344 | |||||||||
Total assets | $ | 7,346,791 | $ | 7,181,855 | $ | 6,932,757 | $ | 5,645,662 | $ | 5,517,539 | |||||||||
Less: Goodwill | 211,251 | 211,251 | 207,632 | 117,345 | 117,345 | ||||||||||||||
Less: Intangible assets | 27,626 | 29,201 | 31,048 | 8,553 | 9,148 | ||||||||||||||
Tangible assets | $ | 7,107,914 | $ | 6,941,403 | $ | 6,694,077 | $ | 5,519,764 | $ | 5,391,046 | |||||||||
Tangible common equity to tangible assets | 8.54 | % | 8.43 | % | 8.35 | % | 8.66 | % | 8.54 | % |
Quarter ended | |||||||||||
($ in thousands) | Sep 30, 2019 | Jun 30, 2019 | Sep 30, 2018 | ||||||||
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY | |||||||||||
Average shareholder’s equity | $ | 843,974 | $ | 813,106 | $ | 586,765 | |||||
Less average goodwill | 211,251 | 211,251 | 117,345 | ||||||||
Less average intangible assets | 28,392 | 29,965 | 9,445 | ||||||||
Average tangible common equity | $ | 604,331 | $ | 571,890 | $ | 459,975 | |||||
Quarter ended | |||||||||||
(in thousands, except per share data) | Sep 30, 2019 | Jun 30, 2019 | Sep 30, 2018 | ||||||||
IMPACT OF MERGER-RELATED EXPENSES | |||||||||||
Net income - GAAP | $ | 29,069 | $ | 18,424 | $ | 22,516 | |||||
Merger related expenses | 393 | 10,306 | — | ||||||||
Related tax effect | (97 | ) | (2,331 | ) | — | ||||||
Adjusted net income - Non-GAAP | $ | 29,365 | $ | 26,399 | $ | 22,516 | |||||
Average diluted common shares | 26,868 | 26,940 | 23,329 | ||||||||
EPS - GAAP net income | $ | 1.08 | $ | 0.68 | $ | 0.97 | |||||
EPS - Adjusted net income | 1.09 | 0.98 | 0.97 | ||||||||
Average assets | $ | 7,222,357 | $ | 7,057,605 | $ | 5,471,504 | |||||
ROAA - GAAP net income | 1.60 | % | 1.05 | % | 1.63 | % | |||||
ROAA - Adjusted net income | 1.61 | 1.50 | 1.63 | ||||||||
Average shareholder’s equity | $ | 843,974 | $ | 813,106 | $ | 586,765 | |||||
ROAE - GAAP net income | 13.66 | % | 9.09 | % | 15.22 | % | |||||
ROAE - Adjusted net income | 13.80 | 13.02 | 15.22 | ||||||||
Average tangible common equity | $ | 604,331 | $ | 571,890 | $ | 459,975 | |||||
ROATCE - GAAP net income | 19.08 | % | 12.92 | % | 19.42 | % | |||||
ROATCE - Adjusted net income | 19.28 | 18.52 | 19.42 |