(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: | July 20, 2020 | By: | /s/ Troy R. Dumlao | |
Troy R. Dumlao | ||||
Senior Vice President and Chief Accounting Officer | ||||
• | Net income of $14.6 million, $0.56 per diluted share, including the impact of provision for credit losses of $0.56 per share |
• | Net interest margin (tax equivalent) of 3.53% |
• | Return on average assets of 0.72% |
• | Maintained dividend of $0.18 per share for third quarter |
• | Earnings - Net income in the second quarter 2020 was $14.6 million, and EPS was $0.56 per diluted share. |
• | Pre-tax pre-provision income1 (“PTPP”) - PTPP of $37.9 million in the second quarter 2020, decreased $0.2 million and increased $13.3 million from the linked-quarter and prior year quarter, respectively. |
• | Net interest income and net interest margin - Net interest income of $65.8 million for the second quarter 2020, increased $2.5 million and $4.1 million, from the linked quarter and prior year quarter, respectively. Net interest margin (“NIM”) was 3.53% for the second quarter 2020, compared to 3.79% and 3.86% for the linked quarter and prior year quarter, respectively. |
• | Loans - Total loans grew $682.5 million, or 12.5%, from the linked quarter to $6.1 billion as of June 30, 2020. Year-over-year, loans grew $990.6 million, or 19.2%, from $5.1 billion as of June 30, 2019. PPP loans primarily contributed to growth in the loan portfolio during the current quarter. As of June 30, 2020, loan modifications comprised 11% of the loan portfolio. |
Quarter ended | |||
($ in thousands, except per share data) | June 30, 2020 | ||
PPP loans outstanding, net of unearned fees | $ | 807,814 | |
Average PPP loans outstanding, net | 634,632 | ||
PPP average loan size | 224 | ||
PPP interest and fee income | 4,083 | ||
PPP unearned fees | 22,414 | ||
PPP average yield | 2.59 | % |
Financial Metrics: | As Reported | Excluding PPP* | |||||
EPS | $ | 0.56 | $ | 0.44 | |||
ROAA | 0.72 | % | 0.62 | % | |||
PTPP ROAA | 1.87 | % | 1.81 | % | |||
Tangible common equity/tangible assets* | 7.81 | % | 8.67 | % | |||
Leverage ratio | 9.16 | % | 9.96 | % | |||
NIM (tax equivalent) | 3.53 | % | 3.62 | % | |||
Allowance for credit losses on loans/loans | 1.80 | % | 2.07 | % | |||
* Non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables. Calculations not adjusted for increase in average deposits or increase in deposit expense, as applicable. |
• | Asset quality - The allowance for credit losses on loans to total loans increased to 1.80% at June 30, 2020 from 1.69% and 0.85% at March 31, 2020 and June 30, 2019, respectively. Nonperforming assets to total assets was 0.55% at June 30, 2020 compared to 0.56% and 0.42% at March 31, 2020 and June 30, 2019, respectively. |
• | Deposits - Total deposits grew $709.7 million, or 11.8%, from the linked quarter to $6.7 billion as of June 30, 2020. Year-over-year, deposits grew $1.1 billion, or 20.5%, from $5.6 billion as of June 30, 2019. Deposits attributable to PPP loan fundings primarily contributed to the growth in deposits during the current quarter. Noninterest deposit accounts represented 29.3% of total deposits at June 30, 2020, and the loan to deposit ratio was 91.6%. |
• | Subordinated Notes - In the second quarter 2020, the Company issued $63.3 million of 5.75% fixed-to-floating rate subordinated notes due in 2030 for general corporate purposes and to bolster capital. The notes are callable starting in June 2025 and are included in tier 2 capital. |
• | Capital - Total shareholders’ equity was $868.0 million and the tangible common equity to tangible assets ratio was 7.81% at June 30, 2020, which compares with 8.42% at March 31, 2020. Balance sheet growth from the PPP was the primary cause of the decline in the tangible common equity to tangible assets ratio. Bank regulatory capital ratios remain “well-capitalized,” with a common equity tier 1 ratio of 11.75% and a total risk-based capital ratio of 13.00%. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 9.91% and 14.40%, respectively, at June 30, 2020. |
• | Liquidity - The Company maintains a high level of both on-balance-sheet and off-balance-sheet liquidity. At June 30, 2020, on-balance-sheet liquidity consisted of cash and unpledged investment securities of $1.0 billion. Off-balance-sheet liquidity totaled $1.5 billion through the Federal Home Loan Bank, Federal Reserve and correspondent bank lines. The Company also has an unused $25 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities. The $63.3 million subordinated debt issuance in the second quarter 2020 has also enhanced the holding company’s liquidity position. |
Quarter ended | ||||||||||||||||||||||||||||||||
June 30, 2020 | March 31, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||
($ 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* | $ | 6,032,076 | $ | 63,869 | 4.26 | % | $ | 5,352,243 | $ | 66,017 | 4.96 | % | $ | 5,095,181 | $ | 68,830 | 5.42 | % | ||||||||||||||
Debt and equity investments* | 1,361,853 | 9,220 | 2.72 | 1,346,968 | 9,708 | 2.90 | 1,246,529 | 9,152 | 2.93 | |||||||||||||||||||||||
Short-term investments | 177,267 | 87 | 0.20 | 92,248 | 300 | 1.31 | 111,291 | 703 | 2.53 | |||||||||||||||||||||||
Total earning assets | 7,571,196 | 73,176 | 3.89 | 6,791,459 | 76,025 | 4.50 | 6,453,001 | 78,685 | 4.89 | |||||||||||||||||||||||
Noninterest-earning assets | 587,008 | 572,146 | 604,604 | |||||||||||||||||||||||||||||
Total assets | $ | 8,158,204 | $ | 7,363,605 | $ | 7,057,605 | ||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,487,467 | $ | 244 | 0.07 | % | $ | 1,375,154 | $ | 1,338 | 0.39 | % | $ | 1,384,090 | $ | 2,134 | 0.62 | % | ||||||||||||||
Money market accounts | 1,941,874 | 995 | 0.21 | 1,811,090 | 4,740 | 1.05 | 1,576,333 | 6,996 | 1.78 | |||||||||||||||||||||||
Savings | 590,104 | 45 | 0.03 | 542,993 | 143 | 0.11 | 562,503 | 231 | 0.16 | |||||||||||||||||||||||
Certificates of deposit | 718,529 | 3,099 | 1.73 | 793,213 | 3,667 | 1.86 | 815,138 | 3,758 | 1.85 | |||||||||||||||||||||||
Total interest-bearing deposits | 4,737,974 | 4,383 | 0.37 | 4,522,450 | 9,888 | 0.88 | 4,338,064 | 13,119 | 1.21 | |||||||||||||||||||||||
Subordinated debentures | 169,311 | 2,316 | 5.50 | 141,295 | 1,919 | 5.46 | 141,059 | 1,958 | 5.57 | |||||||||||||||||||||||
FHLB advances | 251,231 | 455 | 0.73 | 220,453 | 895 | 1.63 | 263,384 | 1,696 | 2.58 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 192,117 | 57 | 0.12 | 201,887 | 343 | 0.68 | 164,037 | 338 | 0.83 | |||||||||||||||||||||||
Other borrowings | 32,842 | 147 | 1.80 | 34,270 | 275 | 3.23 | 40,338 | 375 | 3.73 | |||||||||||||||||||||||
Total interest-bearing liabilities | 5,383,475 | 7,358 | 0.55 | 5,120,355 | 13,320 | 1.05 | 4,946,882 | 17,486 | 1.42 | |||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 1,813,760 | 1,315,267 | 1,244,008 | |||||||||||||||||||||||||||||
Other liabilities | 92,806 | 62,948 | 53,609 | |||||||||||||||||||||||||||||
Total liabilities | 7,290,041 | 6,498,570 | 6,244,499 | |||||||||||||||||||||||||||||
Shareholders' equity | 868,163 | 865,035 | 813,106 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,158,204 | $ | 7,363,605 | $ | 7,057,605 | ||||||||||||||||||||||||||
Core net interest income3 | 65,818 | 62,705 | 61,199 | |||||||||||||||||||||||||||||
Core net interest margin3 | 3.50 | % | 3.71 | % | 3.80 | % | ||||||||||||||||||||||||||
Incremental accretion on non-core acquired loans | 719 | 1,273 | 910 | |||||||||||||||||||||||||||||
Total net interest income | $ | 66,537 | $ | 63,978 | $ | 62,109 | ||||||||||||||||||||||||||
Net interest margin | 3.53 | % | 3.79 | % | 3.86 | % | ||||||||||||||||||||||||||
* Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate. The tax-equivalent adjustments were $0.7 million for the three months ended June 30, 2020, $0.6 million for the three months ended March 31, 2020, and $0.4 million for the three months ended June 30, 2019. |
Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | ||||||||||||||
Net interest income | $ | 65,833 | $ | 63,368 | $ | 61,613 | $ | 63,046 | $ | 61,715 | |||||||||
Less: Incremental accretion income2 | 719 | 1,273 | 576 | 2,140 | 910 | ||||||||||||||
Core net interest income3 | $ | 65,114 | $ | 62,095 | $ | 61,037 | $ | 60,906 | $ | 60,805 | |||||||||
Net interest margin (tax equivalent) | 3.53 | % | 3.79 | % | 3.68 | % | 3.81 | % | 3.86 | % | |||||||||
Core net interest margin3 (tax equivalent) | 3.50 | % | 3.71 | % | 3.64 | % | 3.69 | % | 3.80 | % | |||||||||
Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | ||||||||||||||
C&I - general | $ | 1,057,899 | $ | 1,186,240 | $ | 1,186,667 | $ | 1,174,569 | $ | 1,103,908 | |||||||||
CRE investor owned - general | 1,302,235 | 1,319,316 | 1,290,258 | 1,281,332 | 1,235,596 | ||||||||||||||
CRE owner occupied - general | 599,800 | 584,491 | 582,579 | 566,219 | 591,401 | ||||||||||||||
SBA PPP loans | 807,814 | — | — | — | — | ||||||||||||||
Enterprise value lendinga | 382,828 | 440,764 | 428,896 | 417,521 | 445,981 | ||||||||||||||
Life insurance premium financinga | 520,705 | 496,471 | 472,822 | 468,051 | 465,777 | ||||||||||||||
Residential real estate - general | 326,697 | 346,461 | 366,261 | 386,174 | 409,200 | ||||||||||||||
Construction and land development - general | 455,686 | 445,909 | 428,681 | 403,590 | 376,597 | ||||||||||||||
Tax creditsa | 363,222 | 354,046 | 294,210 | 265,626 | 268,405 | ||||||||||||||
Agriculture | 191,093 | 168,237 | 139,873 | 136,249 | 131,671 | ||||||||||||||
Other | 132,072 | 115,582 | 124,090 | 128,683 | 120,961 | ||||||||||||||
Total Loans | $ | 6,140,051 | $ | 5,457,517 | $ | 5,314,337 | $ | 5,228,014 | $ | 5,149,497 | |||||||||
Total loan yield | 4.31 | % | 5.06 | % | 5.08 | % | 5.47 | % | 5.49 | % | |||||||||
Total C&I loans to total loans | 51 | % | 45 | % | 44 | % | 44 | % | 44 | % | |||||||||
Variable interest rate loans to total loans | 51 | % | 60 | % | 59 | % | 60 | % | 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 Other loans. |
($ in thousands) | Total Loan Modifications | Percentage of Modifications by Category | ||||
Commercial and industrial | $ | 404,295 | 13 | % | ||
Commercial real estate | 171,108 | 8 | % | |||
Construction real estate | 88,369 | 18 | % | |||
Residential real estate | 21,762 | 7 | % | |||
Other | 134 | — | % | |||
Total loans | $ | 685,668 | 11 | % | ||
Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | ||||||||||||||
Nonperforming loans | $ | 41,473 | $ | 37,204 | $ | 26,425 | $ | 15,569 | $ | 19,842 | |||||||||
Other real estate | 4,874 | 5,072 | 6,344 | 8,498 | 10,531 | ||||||||||||||
Nonperforming assets | $ | 46,347 | $ | 42,276 | $ | 32,769 | $ | 24,067 | $ | 30,373 | |||||||||
Nonperforming loans to total loans | 0.68 | % | 0.68 | % | 0.50 | % | 0.30 | % | 0.39 | % | |||||||||
Nonperforming assets to total assets | 0.55 | % | 0.56 | % | 0.45 | % | 0.33 | % | 0.42 | % | |||||||||
Allowance for loan losses to total loans | 1.80 | % | 1.69 | % | 0.81 | % | 0.85 | % | 0.85 | % | |||||||||
Net charge-offs | $ | 309 | $ | 1,183 | $ | 2,543 | $ | 1,070 | $ | 970 |
Quarter ended | |||||||||||||||||||
($ in thousands) | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | ||||||||||||||
Noninterest-bearing accounts | $ | 1,965,868 | $ | 1,354,571 | $ | 1,327,348 | $ | 1,295,450 | $ | 1,181,577 | |||||||||
Interest-bearing transaction accounts | 1,508,535 | 1,389,603 | 1,367,444 | 1,307,855 | 1,392,586 | ||||||||||||||
Money market and savings accounts | 2,566,011 | 2,479,828 | 2,249,784 | 2,201,052 | 2,162,605 | ||||||||||||||
Brokered certificates of deposit | 85,414 | 170,667 | 215,758 | 209,754 | 213,138 | ||||||||||||||
Other certificates of deposit | 573,752 | 595,237 | 610,689 | 610,269 | 609,432 | ||||||||||||||
Total deposit portfolio | $ | 6,699,580 | $ | 5,989,906 | $ | 5,771,023 | $ | 5,624,380 | $ | 5,559,338 | |||||||||
Noninterest-bearing deposits to total deposits | 29.3 | % | 22.6 | % | 23.0 | % | 23.0 | % | 21.3 | % |
Linked quarter comparison | Prior year comparison | ||||||||||||||||||||||||
Quarter ended | Quarter ended | ||||||||||||||||||||||||
($ in thousands) | June 30, 2020 | March 31, 2020 | Increase (decrease) | June 30, 2019 | Increase (decrease) | ||||||||||||||||||||
Service charges on deposit accounts | $ | 2,616 | $ | 3,143 | $ | (527 | ) | (17 | )% | $ | 3,366 | $ | (750 | ) | (22 | )% | |||||||||
Wealth management revenue | 2,326 | 2,501 | (175 | ) | (7 | )% | 2,661 | (335 | ) | (13 | )% | ||||||||||||||
Card services revenue | 2,225 | 2,247 | (22 | ) | (1 | )% | 2,461 | (236 | ) | (10 | )% | ||||||||||||||
Tax credit income | (221 | ) | 2,036 | (2,257 | ) | (111 | )% | 572 | (793 | ) | (139 | )% | |||||||||||||
Miscellaneous income | 3,014 | 3,481 | (467 | ) | (13 | )% | 2,904 | 110 | 4 | % | |||||||||||||||
Total noninterest income | $ | 9,960 | $ | 13,408 | $ | (3,448 | ) | (26 | )% | $ | 11,964 | $ | (2,004 | ) | (17 | )% | |||||||||
Quarter ended | ||||||||||||||
Percent | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | |||||||||
Total risk-based capital to risk-weighted assets | 14.40 | % | 12.85 | % | 12.90 | % | 12.72 | % | 12.62 | % | ||||
Tier 1 capital to risk weighted assets | 11.37 | % | 11.03 | % | 11.40 | % | 11.17 | % | 11.06 | % | ||||
Common equity tier 1 capital to risk-weighted assets | 9.91 | % | 9.58 | % | 9.90 | % | 9.64 | % | 9.51 | % | ||||
Tangible common equity to tangible assets5 | 7.81 | % | 8.42 | % | 8.89 | % | 8.54 | % | 8.43 | % | ||||
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 | Six Months ended | ||||||||||||||||||||||||||
(in thousands, except per share data) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||
EARNINGS SUMMARY | |||||||||||||||||||||||||||
Net interest income | $ | 65,833 | $ | 63,368 | $ | 61,613 | $ | 63,046 | $ | 61,715 | $ | 129,201 | $ | 114,058 | |||||||||||||
Provision for credit losses | 19,591 | 22,264 | 1,341 | 1,833 | 1,722 | 41,855 | 3,198 | ||||||||||||||||||||
Noninterest income | 9,960 | 13,408 | 14,418 | 13,564 | 11,964 | 23,368 | 21,194 | ||||||||||||||||||||
Noninterest expense | 37,912 | 38,673 | 38,354 | 38,239 | 49,054 | 76,585 | 88,892 | ||||||||||||||||||||
Income before income tax expense | 18,290 | 15,839 | 36,336 | 36,538 | 22,903 | 34,129 | 43,162 | ||||||||||||||||||||
Income tax expense | 3,656 | 2,971 | 7,246 | 7,469 | 4,479 | 6,627 | 8,582 | ||||||||||||||||||||
Net income | $ | 14,634 | $ | 12,868 | $ | 29,090 | $ | 29,069 | $ | 18,424 | $ | 27,502 | $ | 34,580 | |||||||||||||
Diluted earnings per share | $ | 0.56 | $ | 0.48 | $ | 1.09 | $ | 1.08 | $ | 0.68 | $ | 1.04 | $ | 1.36 | |||||||||||||
Return on average assets | 0.72 | % | 0.70 | % | 1.58 | % | 1.60 | % | 1.05 | % | 0.71 | % | 1.07 | % | |||||||||||||
Return on average common equity | 6.78 | % | 5.98 | % | 13.43 | % | 13.66 | % | 9.09 | % | 6.38 | % | 9.45 | % | |||||||||||||
Return on average tangible common equity | 9.28 | % | 8.22 | % | 18.54 | % | 19.08 | % | 12.92 | % | 8.76 | % | 12.93 | % | |||||||||||||
Net interest margin (tax equivalent) | 3.53 | % | 3.79 | % | 3.68 | % | 3.81 | % | 3.86 | % | 3.65 | % | 3.87 | % | |||||||||||||
Core net interest margin (tax equivalent)1 | 3.50 | % | 3.71 | % | 3.64 | % | 3.69 | % | 3.80 | % | 3.60 | % | 3.80 | % | |||||||||||||
Efficiency ratio | 50.02 | % | 50.37 | % | 50.45 | % | 49.91 | % | 66.58 | % | 50.20 | % | 65.72 | % | |||||||||||||
Core efficiency ratio1 | 50.66 | % | 51.21 | % | 50.73 | % | 51.73 | % | 53.30 | % | 50.94 | % | 53.65 | % | |||||||||||||
Total assets | $ | 8,357,501 | $ | 7,500,643 | $ | 7,333,791 | $ | 7,346,791 | $ | 7,181,855 | |||||||||||||||||
Total average assets | 8,158,204 | 7,363,605 | 7,322,496 | 7,222,357 | 7,057,605 | $ | 7,760,904 | $ | 6,509,888 | ||||||||||||||||||
Total deposits | 6,699,580 | 5,989,906 | 5,771,023 | 5,624,380 | 5,559,338 | ||||||||||||||||||||||
Total average deposits | 6,551,734 | 5,837,717 | 5,756,292 | 5,597,343 | 5,582,072 | 6,194,726 | 5,143,219 | ||||||||||||||||||||
Period end common shares outstanding | 26,196 | 26,161 | 26,543 | 26,613 | 26,906 | ||||||||||||||||||||||
Dividends per common share | $ | 0.18 | $ | 0.18 | $ | 0.17 | $ | 0.16 | $ | 0.15 | $ | 0.36 | $ | 0.29 | |||||||||||||
Tangible book value per common share | $ | 24.22 | $ | 23.38 | $ | 23.76 | $ | 22.82 | $ | 21.74 | |||||||||||||||||
Tangible common equity to tangible assets1 | 7.81 | % | 8.42 | % | 8.89 | % | 8.54 | % | 8.43 | % | |||||||||||||||||
Total risk-based capital to risk-weighted assets | 14.40 | % | 12.85 | % | 12.90 | % | 12.72 | % | 12.62 | % | |||||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
Quarter ended | Six Months ended | ||||||||||||||||||||||||||
($ in thousands, except per share data) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||
INCOME STATEMENTS | |||||||||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||||||
Total interest income | $ | 73,191 | $ | 76,688 | $ | 77,238 | $ | 81,078 | $ | 79,201 | $ | 149,879 | $ | 146,818 | |||||||||||||
Total interest expense | 7,358 | 13,320 | 15,625 | 18,032 | 17,486 | 20,678 | 32,760 | ||||||||||||||||||||
Net interest income | 65,833 | 63,368 | 61,613 | 63,046 | 61,715 | 129,201 | 114,058 | ||||||||||||||||||||
Provision for credit losses | 19,591 | 22,264 | 1,341 | 1,833 | 1,722 | 41,855 | 3,198 | ||||||||||||||||||||
Net interest income after provision for credit losses | 46,242 | 41,104 | 60,272 | 61,213 | 59,993 | 87,346 | 110,860 | ||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||
Deposit service charges | 2,616 | 3,143 | 3,254 | 3,246 | 3,366 | 5,759 | 6,301 | ||||||||||||||||||||
Wealth management revenue | 2,326 | 2,501 | 2,618 | 2,661 | 2,661 | 4,827 | 4,653 | ||||||||||||||||||||
Card services revenue | 2,225 | 2,247 | 2,409 | 2,494 | 2,461 | 4,472 | 4,251 | ||||||||||||||||||||
Tax credit income | (221 | ) | 2,036 | 3,425 | 1,238 | 572 | 1,815 | 730 | |||||||||||||||||||
Other income | 3,014 | 3,481 | 2,712 | 3,925 | 2,904 | 6,495 | 5,259 | ||||||||||||||||||||
Total noninterest income | 9,960 | 13,408 | 14,418 | 13,564 | 11,964 | 23,368 | 21,194 | ||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Employee compensation and benefits | 22,389 | 21,685 | 20,411 | 20,845 | 20,687 | 44,074 | 40,039 | ||||||||||||||||||||
Occupancy | 3,185 | 3,347 | 3,461 | 3,179 | 3,188 | 6,532 | 5,825 | ||||||||||||||||||||
Merger-related expenses | — | — | — | 393 | 10,306 | — | 17,576 | ||||||||||||||||||||
Other | 12,338 | 13,641 | 14,482 | 13,822 | 14,873 | 25,979 | 25,452 | ||||||||||||||||||||
Total noninterest expense | 37,912 | 38,673 | 38,354 | 38,239 | 49,054 | 76,585 | 88,892 | ||||||||||||||||||||
Income before income tax expense | 18,290 | 15,839 | 36,336 | 36,538 | 22,903 | 34,129 | 43,162 | ||||||||||||||||||||
Income tax expense | 3,656 | 2,971 | 7,246 | 7,469 | 4,479 | 6,627 | 8,582 | ||||||||||||||||||||
Net income | $ | 14,634 | $ | 12,868 | $ | 29,090 | $ | 29,069 | $ | 18,424 | $ | 27,502 | $ | 34,580 | |||||||||||||
Basic earnings per share | $ | 0.56 | $ | 0.49 | $ | 1.10 | $ | 1.09 | $ | 0.69 | $ | 1.04 | $ | 1.36 | |||||||||||||
Diluted earnings per share | $ | 0.56 | $ | 0.48 | $ | 1.09 | $ | 1.08 | $ | 0.68 | $ | 1.04 | $ | 1.36 |
Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||
BALANCE SHEETS | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 100,804 | $ | 98,619 | $ | 74,769 | $ | 153,730 | $ | 106,835 | |||||||||
Interest-earning deposits | 254,830 | 88,794 | 96,217 | 106,747 | 85,315 | ||||||||||||||
Debt and equity investments | 1,387,001 | 1,382,149 | 1,354,527 | 1,354,986 | 1,328,767 | ||||||||||||||
Loans held for sale | 16,029 | 8,430 | 5,570 | 6,281 | 1,437 | ||||||||||||||
Loans | 6,140,051 | 5,457,517 | 5,314,337 | 5,228,014 | 5,149,497 | ||||||||||||||
Less: Allowance for loan losses | 110,270 | 92,187 | 43,288 | 44,555 | 43,822 | ||||||||||||||
Total loans, net | 6,029,781 | 5,365,330 | 5,271,049 | 5,183,459 | 5,105,675 | ||||||||||||||
Fixed assets, net | 58,231 | 59,358 | 60,013 | 59,216 | 58,888 | ||||||||||||||
Goodwill | 210,344 | 210,344 | 210,344 | 211,251 | 211,251 | ||||||||||||||
Intangible assets, net | 23,196 | 24,585 | 26,076 | 27,626 | 29,201 | ||||||||||||||
Other assets | 277,285 | 263,034 | 235,226 | 243,495 | 254,486 | ||||||||||||||
Total assets | $ | 8,357,501 | $ | 7,500,643 | $ | 7,333,791 | $ | 7,346,791 | $ | 7,181,855 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,965,868 | $ | 1,354,571 | $ | 1,327,348 | $ | 1,295,450 | $ | 1,181,577 | |||||||||
Interest-bearing deposits | 4,733,712 | 4,635,335 | 4,443,675 | 4,328,930 | 4,377,761 | ||||||||||||||
Total deposits | 6,699,580 | 5,989,906 | 5,771,023 | 5,624,380 | 5,559,338 | ||||||||||||||
Subordinated debentures | 203,384 | 141,336 | 141,258 | 141,179 | 141,100 | ||||||||||||||
FHLB advances | 250,000 | 222,000 | 222,406 | 461,426 | 389,446 | ||||||||||||||
Other borrowings | 227,961 | 205,918 | 265,172 | 199,634 | 198,104 | ||||||||||||||
Other liabilities | 108,613 | 95,047 | 66,747 | 74,077 | 68,366 | ||||||||||||||
Total liabilities | 7,489,538 | 6,654,207 | 6,466,606 | 6,500,696 | 6,356,354 | ||||||||||||||
Shareholders’ equity | 867,963 | 846,436 | 867,185 | 846,095 | 825,501 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,357,501 | $ | 7,500,643 | $ | 7,333,791 | $ | 7,346,791 | $ | 7,181,855 |
Six Months ended | |||||||||||||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||
($ 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* | $ | 5,692,159 | $ | 129,886 | 4.59 | % | $ | 4,804,898 | $ | 128,803 | 5.41 | % | |||||||||
Debt and equity investments* | 1,354,410 | 18,928 | 2.81 | 1,072,698 | 15,444 | 2.90 | |||||||||||||||
Short-term investments | 134,758 | 387 | 0.58 | 106,752 | 1,150 | 2.17 | |||||||||||||||
Total earning assets | 7,181,327 | 149,201 | 4.18 | 5,984,348 | 145,397 | 4.90 | |||||||||||||||
Noninterest-earning assets | 579,577 | 525,540 | |||||||||||||||||||
Total assets | $ | 7,760,904 | $ | 6,509,888 | |||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,431,311 | $ | 1,581 | 0.22 | % | $ | 1,231,537 | $ | 3,924 | 0.64 | % | |||||||||
Money market accounts | 1,876,482 | 5,735 | 0.61 | 1,549,255 | 13,511 | 1.76 | |||||||||||||||
Savings | 566,549 | 188 | 0.07 | 431,843 | 414 | 0.19 | |||||||||||||||
Certificates of deposit | 755,871 | 6,767 | 1.80 | 763,988 | 7,090 | 1.87 | |||||||||||||||
Total interest-bearing deposits | 4,630,213 | 14,271 | 0.62 | 3,976,623 | 24,939 | 1.26 | |||||||||||||||
Subordinated debentures | 155,303 | 4,235 | 5.48 | 132,653 | 3,606 | 5.48 | |||||||||||||||
FHLB advances | 235,842 | 1,350 | 1.15 | 239,535 | 3,094 | 2.60 | |||||||||||||||
Securities sold under agreements to repurchase | 197,002 | 419 | 0.43 | 175,603 | 611 | 0.70 | |||||||||||||||
Other borrowed funds | 33,556 | 403 | 2.42 | 27,689 | 510 | 3.71 | |||||||||||||||
Total interest-bearing liabilities | 5,251,916 | 20,678 | 0.79 | 4,552,103 | 32,760 | 1.45 | |||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 1,564,513 | 1,166,595 | |||||||||||||||||||
Other liabilities | 77,876 | 52,994 | |||||||||||||||||||
Total liabilities | 6,894,305 | 5,771,692 | |||||||||||||||||||
Shareholders' equity | 866,599 | 738,196 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 7,760,904 | $ | 6,509,888 | |||||||||||||||||
Core net interest income1 | 128,523 | 112,637 | |||||||||||||||||||
Core net interest margin1 | 3.60 | % | 3.80 | % | |||||||||||||||||
Incremental accretion on non-core acquired loans | 1,992 | 2,067 | |||||||||||||||||||
Total net interest income | $ | 130,515 | $ | 114,704 | |||||||||||||||||
Net interest margin | 3.65 | % | 3.87 | % | |||||||||||||||||
* Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate. The tax-equivalent adjustments were $1.3 million and $0.6 million for the six months ended June 30, 2020 and 2019, respectively. | |||||||||||||||||||||
Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||
LOAN PORTFOLIO | |||||||||||||||||||
Commercial and industrial | $ | 3,143,197 | $ | 2,469,013 | $ | 2,361,157 | $ | 2,303,495 | $ | 2,265,480 | |||||||||
Commercial real estate | 2,048,444 | 2,048,357 | 1,997,321 | 1,967,888 | 1,940,958 | ||||||||||||||
Construction real estate | 481,221 | 469,627 | 457,273 | 433,486 | 404,557 | ||||||||||||||
Residential real estate | 326,992 | 346,758 | 366,261 | 386,173 | 409,200 | ||||||||||||||
Other | 140,197 | 123,762 | 132,325 | 136,972 | 129,302 | ||||||||||||||
Total loans | $ | 6,140,051 | $ | 5,457,517 | $ | 5,314,337 | $ | 5,228,014 | $ | 5,149,497 | |||||||||
DEPOSIT PORTFOLIO | |||||||||||||||||||
Noninterest-bearing accounts | $ | 1,965,868 | $ | 1,354,571 | $ | 1,327,348 | $ | 1,295,450 | $ | 1,181,577 | |||||||||
Interest-bearing transaction accounts | 1,508,535 | 1,389,603 | 1,367,444 | 1,307,855 | 1,392,586 | ||||||||||||||
Money market and savings accounts | 2,566,011 | 2,479,828 | 2,249,784 | 2,201,052 | 2,162,605 | ||||||||||||||
Brokered certificates of deposit | 85,414 | 170,667 | 215,758 | 209,754 | 213,138 | ||||||||||||||
Other certificates of deposit | 573,752 | 595,237 | 610,689 | 610,269 | 609,432 | ||||||||||||||
Total deposit portfolio | $ | 6,699,580 | $ | 5,989,906 | $ | 5,771,023 | $ | 5,624,380 | $ | 5,559,338 | |||||||||
AVERAGE BALANCES | |||||||||||||||||||
Total loans | $ | 6,032,077 | $ | 5,352,243 | $ | 5,279,500 | $ | 5,178,009 | $ | 5,095,181 | |||||||||
Debt and equity investments | 1,361,853 | 1,346,968 | 1,322,017 | 1,312,860 | 1,246,529 | ||||||||||||||
Interest-earning assets | 7,571,196 | 6,791,459 | 6,704,506 | 6,604,083 | 6,453,001 | ||||||||||||||
Total assets | 8,158,204 | 7,363,605 | 7,322,496 | 7,222,357 | 7,057,605 | ||||||||||||||
Deposits | 6,551,734 | 5,837,717 | 5,756,292 | 5,597,343 | 5,582,072 | ||||||||||||||
Shareholders’ equity | 868,163 | 865,035 | 859,674 | 843,974 | 813,106 | ||||||||||||||
Tangible common equity1 | 633,946 | 629,390 | 622,502 | 604,331 | 571,890 | ||||||||||||||
YIELDS (tax equivalent) | |||||||||||||||||||
Total loans | 4.31 | % | 5.06 | % | 5.08 | % | 5.47 | % | 5.49 | % | |||||||||
Debt and equity investments | 2.72 | 2.90 | 2.91 | 2.90 | 2.95 | ||||||||||||||
Interest-earning assets | 3.93 | 4.58 | 4.60 | 4.90 | 4.95 | ||||||||||||||
Interest-bearing deposits | 0.37 | 0.88 | 1.05 | 1.20 | 1.21 | ||||||||||||||
Total deposits | 0.27 | 0.68 | 0.81 | 0.94 | 0.94 | ||||||||||||||
Subordinated debentures | 5.50 | 5.46 | 5.46 | 5.50 | 5.57 | ||||||||||||||
FHLB advances and other borrowed funds | 0.56 | 1.33 | 1.57 | 1.99 | 2.07 | ||||||||||||||
Interest-bearing liabilities | 0.55 | 1.05 | 1.23 | 1.41 | 1.42 | ||||||||||||||
Net interest margin | 3.53 | 3.79 | 3.68 | 3.81 | 3.86 |
Quarter ended | |||||||||||||||||||
(in thousands, except per share data) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||
ASSET QUALITY | |||||||||||||||||||
Net charge-offs | $ | 309 | $ | 1,183 | $ | 2,543 | $ | 1,070 | $ | 970 | |||||||||
Nonperforming loans | 41,473 | 37,204 | 26,425 | 15,569 | 19,842 | ||||||||||||||
Classified assets | 96,678 | 104,754 | 85,897 | 93,984 | 91,715 | ||||||||||||||
Nonperforming loans to total loans | 0.68 | % | 0.68 | % | 0.50 | % | 0.30 | % | 0.39 | % | |||||||||
Nonperforming assets to total assets | 0.55 | % | 0.56 | % | 0.45 | % | 0.33 | % | 0.42 | % | |||||||||
Allowance for loan losses to total loans | 1.80 | % | 1.69 | % | 0.81 | % | 0.85 | % | 0.85 | % | |||||||||
Allowance for loan losses to nonperforming loans | 265.9 | % | 247.8 | % | 163.8 | % | 286.2 | % | 220.9 | % | |||||||||
Net charge-offs to average loans (annualized) | 0.02 | % | 0.09 | % | 0.19 | % | 0.08 | % | 0.08 | % | |||||||||
WEALTH MANAGEMENT | |||||||||||||||||||
Trust assets under management | $ | 1,602,358 | $ | 1,445,521 | $ | 1,671,082 | $ | 1,583,260 | $ | 1,627,050 | |||||||||
Trust assets under administration | 2,455,111 | 2,139,673 | 2,524,478 | 2,404,950 | 2,428,551 | ||||||||||||||
MARKET DATA | |||||||||||||||||||
Book value per common share | $ | 33.13 | $ | 32.36 | $ | 32.67 | $ | 31.79 | $ | 30.68 | |||||||||
Tangible book value per common share1 | $ | 24.22 | $ | 23.38 | $ | 23.76 | $ | 22.82 | $ | 21.74 | |||||||||
Market value per share | $ | 31.12 | $ | 27.91 | $ | 48.21 | $ | 40.75 | $ | 41.60 | |||||||||
Period end common shares outstanding | 26,196 | 26,161 | 26,543 | 26,613 | 26,906 | ||||||||||||||
Average basic common shares | 26,180 | 26,473 | 26,540 | 26,778 | 26,887 | ||||||||||||||
Average diluted common shares | 26,195 | 26,539 | 26,668 | 26,868 | 26,940 | ||||||||||||||
CAPITAL | |||||||||||||||||||
Total risk-based capital to risk-weighted assets | 14.40 | % | 12.85 | % | 12.90 | % | 12.72 | % | 12.62 | % | |||||||||
Tier 1 capital to risk-weighted assets | 11.37 | % | 11.03 | % | 11.40 | % | 11.17 | % | 11.06 | % | |||||||||
Common equity tier 1 capital to risk-weighted assets | 9.91 | % | 9.58 | % | 9.90 | % | 9.64 | % | 9.51 | % | |||||||||
Tangible common equity to tangible assets1 | 7.81 | % | 8.42 | % | 8.89 | % | 8.54 | % | 8.43 | % | |||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. |
Quarter ended | Six Months ended | ||||||||||||||||||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||
CORE PERFORMANCE MEASURES | |||||||||||||||||||||||||||
Net interest income | $ | 65,833 | $ | 63,368 | $ | 61,613 | $ | 63,046 | $ | 61,715 | $ | 129,201 | $ | 114,058 | |||||||||||||
Less: Incremental accretion income | 719 | 1,273 | 576 | 2,140 | 910 | 1,992 | 2,067 | ||||||||||||||||||||
Core net interest income | 65,114 | 62,095 | 61,037 | 60,906 | 60,805 | 127,209 | 111,991 | ||||||||||||||||||||
Total noninterest income | 9,960 | 13,408 | 14,418 | 13,564 | 11,964 | 23,368 | 21,194 | ||||||||||||||||||||
Less: Other income from non-core acquired assets | — | — | 4 | 1,001 | 2 | — | 367 | ||||||||||||||||||||
Less: Gain on sale of investment securities | — | 4 | (94 | ) | 337 | — | 4 | — | |||||||||||||||||||
Less: Other non-core income | 265 | — | — | — | 266 | 265 | 266 | ||||||||||||||||||||
Core noninterest income | 9,695 | 13,404 | 14,508 | 12,226 | 11,696 | 23,099 | 20,561 | ||||||||||||||||||||
Total core revenue | 74,809 | 75,499 | 75,545 | 73,132 | 72,501 | 150,308 | 132,552 | ||||||||||||||||||||
Total noninterest expense | 37,912 | 38,673 | 38,354 | 38,239 | 49,054 | 76,585 | 88,892 | ||||||||||||||||||||
Less: Other expenses related to non-core acquired loans | 12 | 12 | 33 | 18 | 103 | 24 | 206 | ||||||||||||||||||||
Less: Merger-related expenses | — | — | — | 393 | 10,306 | — | 17,576 | ||||||||||||||||||||
Core noninterest expense | 37,900 | 38,661 | 38,321 | 37,828 | 38,645 | 76,561 | 71,110 | ||||||||||||||||||||
Core efficiency ratio | 50.66 | % | 51.21 | % | 50.73 | % | 51.73 | % | 53.30 | % | 50.94 | % | 53.65 | % | |||||||||||||
NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) | |||||||||||||||||||||||||||
Net interest income | $ | 66,537 | $ | 63,978 | $ | 62,141 | $ | 63,483 | $ | 62,109 | $ | 130,515 | $ | 114,704 | |||||||||||||
Less: Incremental accretion income | 719 | 1,273 | 576 | 2,140 | 910 | 1,992 | 2,067 | ||||||||||||||||||||
Core net interest income | $ | 65,818 | $ | 62,705 | $ | 61,565 | $ | 61,343 | $ | 61,199 | $ | 128,523 | $ | 112,637 | |||||||||||||
Average earning assets | $ | 7,571,196 | $ | 6,791,459 | $ | 6,704,506 | $ | 6,604,083 | $ | 6,453,001 | $ | 7,181,328 | $ | 5,984,348 | |||||||||||||
Reported net interest margin | 3.53 | % | 3.79 | % | 3.68 | % | 3.81 | % | 3.86 | % | 3.65 | % | 3.87 | % | |||||||||||||
Core net interest margin | 3.50 | % | 3.71 | % | 3.64 | % | 3.69 | % | 3.80 | % | 3.60 | % | 3.80 | % |
Quarter ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||
SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS | |||||||||||||||||||
Shareholders’ equity | $ | 867,963 | $ | 846,436 | $ | 867,185 | $ | 846,095 | $ | 825,501 | |||||||||
Less: Goodwill | 210,344 | 210,344 | 210,344 | 211,251 | 211,251 | ||||||||||||||
Less: Intangible assets | 23,196 | 24,585 | 26,076 | 27,626 | 29,201 | ||||||||||||||
Tangible common equity | $ | 634,423 | $ | 611,507 | $ | 630,765 | $ | 607,218 | $ | 585,049 | |||||||||
Total assets | $ | 8,357,501 | $ | 7,500,643 | $ | 7,333,791 | $ | 7,346,791 | $ | 7,181,855 | |||||||||
Less: Goodwill | 210,344 | 210,344 | 210,344 | 211,251 | 211,251 | ||||||||||||||
Less: Intangible assets | 23,196 | 24,585 | 26,076 | 27,626 | 29,201 | ||||||||||||||
Tangible assets | $ | 8,123,961 | $ | 7,265,714 | $ | 7,097,371 | $ | 7,107,914 | $ | 6,941,403 | |||||||||
Tangible common equity to tangible assets | 7.81 | % | 8.42 | % | 8.89 | % | 8.54 | % | 8.43 | % |
Quarter ended | |||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Jun 30, 2019 | ||||||||
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY | |||||||||||
Average shareholder’s equity | $ | 868,163 | $ | 865,035 | $ | 813,106 | |||||
Less average goodwill | 210,344 | 210,344 | 211,251 | ||||||||
Less average intangible assets | 23,873 | 25,301 | 29,965 | ||||||||
Average tangible common equity | $ | 633,946 | $ | 629,390 | $ | 571,890 | |||||
Quarter Ended | |||||||||||||||||||
($ in thousands) | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||
CALCULATION OF PRE-TAX, PRE-PROVISION INCOME | |||||||||||||||||||
Net interest income | $ | 65,833 | $ | 63,368 | $ | 61,613 | $ | 63,046 | $ | 61,715 | |||||||||
Noninterest income | 9,960 | 13,408 | 14,418 | 13,564 | 11,964 | ||||||||||||||
Noninterest expense | 37,912 | 38,673 | 38,354 | 38,239 | 49,054 | ||||||||||||||
PTPP income | 37,881 | 38,103 | 37,677 | 38,371 | 24,625 | ||||||||||||||
Provision for credit losses | 19,591 | 22,264 | 1,341 | 1,833 | 1,722 | ||||||||||||||
Income before income tax expense | 18,290 | 15,839 | 36,336 | 36,538 | 22,903 | ||||||||||||||
Income tax expense | 3,656 | 2,971 | 7,246 | 7,469 | 4,479 | ||||||||||||||
Net income | $ | 14,634 | $ | 12,868 | $ | 29,090 | $ | 29,069 | $ | 18,424 |
Quarter Ended | |||
($ in thousands, except per share data) | Jun 30, 2020 | ||
IMPACT OF PAYCHECK PROTECTION PROGRAM | |||
Net income - GAAP | $ | 14,634 | |
PPP interest and fee income | (4,083 | ) | |
Related tax effect | 1,009 | ||
Adjusted net income - Non-GAAP | $ | 11,560 | |
Average diluted common shares | 26,195 | ||
EPS - GAAP net income | $ | 0.56 | |
EPS - Adjusted net income | $ | 0.44 | |
Average assets - GAAP | $ | 8,158,204 | |
Average PPP loans, net | (634,632 | ) | |
Adjusted average assets - Non-GAAP | $ | 7,523,572 | |
ROAA - GAAP net income | 0.72 | % | |
ROAA - Adjusted net income, adjusted average assets | 0.62 | % | |
PTPP Income - Non-GAAP (see reconciliation above) | $ | 37,881 | |
PPP interest and fees | (4,083 | ) | |
Adjusted PTPP income - Non-GAAP | $ | 33,798 | |
PTPP ROAA - PTPP income | 1.87 | % | |
PTPP ROAA - adjusted PTPP income, adjusted average assets | 1.81 | % | |
Tangible assets - Non-GAAP (see reconciliation above) | $ | 8,123,961 | |
PPP loans outstanding, net | (807,814 | ) | |
Adjusted tangible assets - Non-GAAP | $ | 7,316,147 | |
Tangible common equity Non - GAAP (see reconciliation above) | $ | 634,423 | |
Tangible common equity to tangible assets | 7.81 | % | |
Tangible common equity to tangible assets - adjusted tangible assets | 8.67 | % | |
Average assets for leverage ratio | $ | 7,928,286 | |
Average PPP loans, net | (634,632 | ) | |
Adjusted average assets for leverage ratio - Non-GAAP | $ | 7,293,654 | |
Tier 1 capital | $ | 726,574 | |
Leverage ratio | 9.16 | % | |
Leverage ratio - adjusted average assets for leverage ratio | 9.96 | % | |
Net interest income - tax equivalent | $ | 66,537 | |
PPP interest and fees | (4,083 | ) | |
Adjusted net interest income - tax equivalent | $ | 62,454 | |
Average earning assets -GAAP | $ | 7,571,196 | |
Average PPP loans, net | (634,632 | ) | |
Adjusted average earning assets - Non-GAAP | $ | 6,936,564 | |
Net interest margin - tax equivalent | 3.53 | % | |
Net interest margin - tax equivalent - adjusted net interest income, adjusted average earning assets | 3.62 | % | |
Loans - GAAP | $ | 6,140,051 | |
PPP loans outstanding, net | (807,814 | ) | |
Adjusted loans - Non-GAAP | $ | 5,332,237 | |
Allowance for credit losses on loans | $ | 110,270 | |
Allowance for credit losses on loans/loans - GAAP | 1.80 | % | |
Allowance for credit losses on loans/loans - adjusted loans | 2.07 | % |