Washington | 91-1857900 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
201 Fifth Avenue SW, Olympia, WA | 98501 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
HERITAGE FINANCIAL CORPORATION | ||
Date: | ||
April 25, 2019 | /S/ BRIAN L. VANCE | |
Brian L. Vance | ||
Chief Executive Officer | ||
(Duly Authorized Officer) |
• | Diluted earnings per common share were $0.45 for the quarter ended March 31, 2019 compared to $0.27 for the quarter ended March 31, 2018 and $0.45 for the linked-quarter ended December 31, 2018. |
• | Heritage declared a regular cash dividend of $0.18 per common share on April 24, 2019. |
• | Loan growth was 4.6%, on an annualized basis, during the quarter ended March 31, 2019. |
• | Expanded the commercial banking team in the greater Portland, Oregon area with seven new bankers. |
Three Months Ended | |||
March 31, 2019 | |||
(In thousands) | |||
Balance, beginning of period | $ | 760,723 | |
Net income | 16,552 | ||
Accumulated other comprehensive gain | 8,016 | ||
Dividends paid | (6,662 | ) | |
ASU 2016-02 implementation | (399 | ) | |
Other | (39 | ) | |
Balance, end of period | $ | 778,191 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(In thousands) | |||||||||||
Nonaccrual loans | |||||||||||
Balance, beginning of period | $ | 13,703 | $ | 14,780 | $ | 10,703 | |||||
Addition of previously classified pass graded loans | — | 96 | 4,066 | ||||||||
Addition of previously classified potential problem loans | 6,189 | 983 | 2,324 | ||||||||
Addition of previously classified TDR loans | — | 786 | — | ||||||||
Net principal payments | (2,392 | ) | (2,639 | ) | (1,365 | ) | |||||
Charge-offs | (39 | ) | (303 | ) | — | ||||||
Balance, end of period | $ | 17,461 | $ | 13,703 | $ | 15,728 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(In thousands) | |||||||||||
Potential problem loans | |||||||||||
Balance, beginning of period | $ | 101,349 | $ | 105,742 | $ | 83,543 | |||||
Addition of previously classified pass graded loans | 9,766 | 14,562 | 25,126 | ||||||||
Upgrades to pass graded loan status | — | (1,473 | ) | (3,636 | ) | ||||||
Net principal payments | (13,512 | ) | (7,654 | ) | (9,232 | ) | |||||
Transfers of loans to nonaccrual and TDR status | (3,300 | ) | (9,727 | ) | (2,403 | ) | |||||
Charge-offs | (187 | ) | (101 | ) | (145 | ) | |||||
Balance, end of period | $ | 94,116 | $ | 101,349 | $ | 93,253 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands) | |||||||||||
Yield non-GAAP reconciliation: (2) | |||||||||||
Net interest margin (GAAP) | 4.34 | % | 4.37 | % | 4.12 | % | |||||
Exclude impact on net interest margin from incremental accretion on purchased loans(1) | 0.12 | % | 0.15 | % | 0.16 | % | |||||
Net interest margin, excluding incremental accretion on purchased loans (non-GAAP)(1) | 4.22 | % | 4.22 | % | 3.96 | % | |||||
Loan yield (GAAP) | 5.23 | % | 5.25 | % | 4.91 | % | |||||
Exclude impact on loan yield from incremental accretion on purchased loans(1) | 0.15 | % | 0.19 | % | 0.21 | % | |||||
Loan yield, excluding incremental accretion on purchased loans (non-GAAP)(1) | 5.08 | % | 5.06 | % | 4.70 | % | |||||
Incremental accretion on purchased loans(1) | $ | 1,373 | $ | 1,703 | $ | 1,632 |
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Tangible common shareholders' equity and tangible assets: | |||||||||||
Stockholders' equity (GAAP) | $ | 778,191 | $ | 760,723 | $ | 634,708 | |||||
Exclude goodwill and other intangible assets | 260,528 | 261,553 | 204,112 | ||||||||
Tangible common stockholders' equity (non-GAAP) | $ | 517,663 | $ | 499,170 | $ | 430,596 | |||||
Total assets (GAAP) | $ | 5,342,099 | $ | 5,316,927 | $ | 4,676,250 | |||||
Exclude goodwill and other intangible assets | 260,528 | 261,553 | 204,112 | ||||||||
Tangible assets (non-GAAP) | $ | 5,081,571 | $ | 5,055,374 | $ | 4,472,138 | |||||
Common equity to assets (GAAP) | 14.6 | % | 14.3 | % | 13.6 | % | |||||
Tangible common equity to tangible assets (non-GAAP) | 10.2 | % | 9.9 | % | 9.6 | % | |||||
Common stock shares outstanding | 36,899,138 | 36,874,055 | 34,018,280 | ||||||||
Book value per common share (GAAP) | $ | 21.09 | $ | 20.63 | $ | 18.66 | |||||
Tangible book value per common share (non-GAAP) | $ | 14.03 | $ | 13.54 | $ | 12.66 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Adjusted return on average tangible common stockholders' equity: | |||||||||||
Net income (GAAP) | 16,552 | $ | 16,609 | $ | 9,087 | ||||||
Exclude acquisition-related expenses | 132 | 1,301 | 4,808 | ||||||||
Exclude amortization of intangible assets | 1,025 | 1,114 | 795 | ||||||||
Exclude tax effect of adjustments | (243 | ) | (507 | ) | (1,177 | ) | |||||
Adjusted tangible net income (non-GAAP) | $ | 17,466 | $ | 18,517 | $ | 13,513 | |||||
Average stockholders' equity (GAAP) | $ | 766,451 | $ | 750,165 | $ | 614,974 | |||||
Exclude average intangible assets | (261,194 | ) | (262,177 | ) | (191,335 | ) | |||||
Average tangible common stockholders' equity (non-GAAP) | $ | 505,257 | $ | 487,988 | $ | 423,639 | |||||
Return on average common equity, annualized (GAAP) | 8.76 | % | 8.78 | % | 5.99 | % | |||||
Return on average tangible common equity, annualized (non-GAAP) | 13.29 | % | 13.50 | % | 8.70 | % | |||||
Adjusted return on average tangible common equity, annualized (non-GAAP) | 14.02 | % | 15.05 | % | 12.94 | % |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Earnings from core operations: | |||||||||||
Net income (GAAP) | $ | 16,552 | $ | 16,609 | $ | 9,087 | |||||
Exclude acquisition-related expenses | 132 | 1,301 | 4,808 | ||||||||
Exclude tax effect of adjustments | (28 | ) | (273 | ) | (1,010 | ) | |||||
Adjusted net income (non-GAAP) | $ | 16,656 | $ | 17,637 | $ | 12,885 | |||||
Exclude dividends and undistributed earnings allocated to participating securities | (52 | ) | (69 | ) | (51 | ) | |||||
Adjusted net income allocated to common shareholders (non-GAAP) | $ | 16,604 | $ | 17,568 | $ | 12,834 | |||||
Diluted weighted average common shares | 37,010,640 | 36,998,880 | 33,348,102 | ||||||||
Diluted earnings per share (GAAP) | $ | 0.45 | $ | 0.45 | $ | 0.27 | |||||
Adjusted diluted earnings per share (non-GAAP) | $ | 0.45 | $ | 0.47 | $ | 0.38 | |||||
Average assets | $ | 5,317,325 | $ | 5,325,366 | $ | 4,553,585 | |||||
Return on average assets, annualized (GAAP) | 1.26 | % | 1.24 | % | 0.81 | % | |||||
Adjusted return on average assets, annualized (non-GAAP) | 1.27 | % | 1.31 | % | 1.15 | % |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Adjusted noninterest expense: | |||||||||||
Noninterest expense (GAAP) | $ | 36,525 | $ | 37,274 | $ | 36,747 | |||||
Exclude acquisition-related expenses | (132 | ) | (1,301 | ) | (4,808 | ) | |||||
Exclude amortization of intangible assets | (1,025 | ) | (1,114 | ) | (795 | ) | |||||
Adjusted noninterest expense (non-GAAP) | $ | 35,368 | $ | 34,859 | $ | 31,144 | |||||
Average Assets | $ | 5,317,325 | $ | 5,325,366 | $ | 4,553,585 | |||||
Noninterest expense to average assets, annualized (GAAP) | 2.79 | % | 2.78 | % | 3.27 | % | |||||
Adjusted noninterest expense to average assets, annualized (non-GAAP) | 2.70 | % | 2.60 | % | 2.77 | % |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
(Dollars in thousands) | |||||||||||
Net interest income and interest and fees on loans: | |||||||||||
Net interest income (GAAP) | $ | 49,809 | $ | 51,270 | $ | 40,837 | |||||
Exclude incremental accretion on purchased loans | 1,373 | 1,703 | 1,632 | ||||||||
Adjusted net interest income (non-GAAP) | $ | 48,436 | $ | 49,567 | $ | 39,205 | |||||
Average total interest earning assets, net | $ | 4,649,259 | $ | 4,653,215 | $ | 4,018,720 | |||||
Net interest margin, annualized (GAAP) | 4.34 | % | 4.37 | % | 4.12 | % | |||||
Net interest margin, excluding incremental accretion on purchased loans, annualized (non-GAAP) | 4.22 | % | 4.22 | % | 3.96 | % | |||||
Interest and fees on loans (GAAP) | $ | 46,699 | $ | 47,865 | $ | 38,159 | |||||
Exclude incremental accretion on purchased loans | 1,373 | 1,703 | 1,632 | ||||||||
Adjusted interest and fees on loans (non-GAAP) | $ | 45,326 | $ | 46,162 | $ | 36,527 | |||||
Average total loans receivable, net | $ | 3,622,494 | $ | 3,615,362 | $ | 3,150,869 | |||||
Loan yield, annualized (GAAP) | 5.23 | % | 5.25 | % | 4.91 | % | |||||
Loan yield, excluding incremental accretion on purchased loans, annualized (non-GAAP) | 5.08 | % | 5.06 | % | 4.70 | % |
March 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Cash on hand and in banks | $ | 71,252 | $ | 92,704 | |||
Interest earning deposits | 39,918 | 69,206 | |||||
Cash and cash equivalents | 111,170 | 161,910 | |||||
Investment securities available for sale | 985,009 | 976,095 | |||||
Loans held for sale | 2,956 | 1,555 | |||||
Loans receivable, net | 3,696,431 | 3,654,160 | |||||
Allowance for loan losses | (36,152 | ) | (35,042 | ) | |||
Total loans receivable, net | 3,660,279 | 3,619,118 | |||||
Other real estate owned | 1,904 | 1,983 | |||||
Premises and equipment, net | 80,130 | 81,100 | |||||
Federal Home Loan Bank stock, at cost | 7,377 | 6,076 | |||||
Bank owned life insurance | 94,099 | 93,612 | |||||
Accrued interest receivable | 15,621 | 15,403 | |||||
Prepaid expenses and other assets | 123,026 | 98,522 | |||||
Other intangible assets, net | 19,589 | 20,614 | |||||
Goodwill | 240,939 | 240,939 | |||||
Total assets | $ | 5,342,099 | $ | 5,316,927 | |||
Liabilities and Stockholders' Equity | |||||||
Deposits | $ | 4,393,715 | $ | 4,432,402 | |||
Federal Home Loan Bank advances | 25,000 | — | |||||
Junior subordinated debentures | 20,375 | 20,302 | |||||
Securities sold under agreement to repurchase | 24,923 | 31,487 | |||||
Accrued expenses and other liabilities | 99,895 | 72,013 | |||||
Total liabilities | 4,563,908 | 4,556,204 | |||||
Common stock | 591,767 | 591,806 | |||||
Retained earnings | 185,863 | 176,372 | |||||
Accumulated other comprehensive gain (loss), net | 561 | (7,455 | ) | ||||
Total stockholders' equity | 778,191 | 760,723 | |||||
Total liabilities and stockholders' equity | $ | 5,342,099 | $ | 5,316,927 | |||
Common stock shares outstanding | 36,899,138 | 36,874,055 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Interest income: | |||||||||||
Interest and fees on loans | $ | 46,699 | $ | 47,865 | $ | 38,159 | |||||
Taxable interest on investment securities | 5,823 | 5,343 | 3,529 | ||||||||
Nontaxable interest on investment securities | 950 | 1,003 | 1,341 | ||||||||
Interest on other interest earning assets | 356 | 654 | 218 | ||||||||
Total interest income | 53,828 | 54,865 | 43,247 | ||||||||
Interest expense: | |||||||||||
Deposits | 3,603 | 3,228 | 1,960 | ||||||||
Junior subordinated debentures | 354 | 335 | 283 | ||||||||
Other borrowings | 62 | 32 | 167 | ||||||||
Total interest expense | 4,019 | 3,595 | 2,410 | ||||||||
Net interest income | 49,809 | 51,270 | 40,837 | ||||||||
Provision for loan losses | 920 | 1,162 | 1,152 | ||||||||
Net interest income after provision for loan losses | 48,889 | 50,108 | 39,685 | ||||||||
Noninterest income: | |||||||||||
Service charges and other fees | 4,485 | 4,852 | 4,543 | ||||||||
Gain on sale of investment securities, net | 15 | 2 | 35 | ||||||||
Gain on sale of loans, net | 252 | 473 | 874 | ||||||||
Interest rate swap fees | — | 204 | 51 | ||||||||
Other income | 2,656 | 2,933 | 2,045 | ||||||||
Total noninterest income | 7,408 | 8,464 | 7,548 | ||||||||
Noninterest expense: | |||||||||||
Compensation and employee benefits | 21,914 | 22,338 | 21,367 | ||||||||
Occupancy and equipment | 5,458 | 5,322 | 4,627 | ||||||||
Data processing | 2,173 | 2,433 | 2,605 | ||||||||
Marketing | 1,098 | 721 | 808 | ||||||||
Professional services | 1,173 | 1,185 | 2,837 | ||||||||
State/municipal business and use taxes | 798 | 804 | 688 | ||||||||
Federal deposit insurance premium | 285 | 375 | 355 | ||||||||
Other real estate owned, net | 86 | 88 | — | ||||||||
Amortization of intangible assets | 1,025 | 1,114 | 795 | ||||||||
Other expense | 2,515 | 2,894 | 2,665 | ||||||||
Total noninterest expense | 36,525 | 37,274 | 36,747 | ||||||||
Income before income taxes | 19,772 | 21,298 | 10,486 | ||||||||
Income tax expense | 3,220 | 4,689 | 1,399 | ||||||||
Net income | $ | 16,552 | $ | 16,609 | $ | 9,087 | |||||
Basic earnings per common share | $ | 0.45 | $ | 0.45 | $ | 0.27 | |||||
Diluted earnings per common share | $ | 0.45 | $ | 0.45 | $ | 0.27 | |||||
Dividends declared per common share | $ | 0.18 | $ | 0.27 | $ | 0.15 | |||||
Average number of basic common shares outstanding | 36,825,532 | 36,806,946 | 33,205,546 | ||||||||
Average number of diluted common shares outstanding | 37,010,640 | 36,998,880 | 33,348,102 |
Three Months Ended | ||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||
Performance Ratios: | ||||||||
Efficiency ratio | 63.84 | % | 62.40 | % | 75.95 | % | ||
Noninterest expense to average assets, annualized | 2.79 | % | 2.78 | % | 3.27 | % | ||
Return on average assets, annualized | 1.26 | % | 1.24 | % | 0.81 | % | ||
Return on average equity, annualized | 8.76 | % | 8.78 | % | 5.99 | % | ||
Return on average tangible common equity, annualized | 13.29 | % | 13.50 | % | 8.70 | % | ||
Net (recoveries) charge-offs on loans to average loans, annualized | (0.02 | )% | 0.07 | % | — | % |
As of Period End | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Financial Measures: | |||||||
Book value per common share | $ | 21.09 | $ | 20.63 | |||
Tangible book value per common share | $ | 14.03 | $ | 13.54 | |||
Stockholders' equity to total assets | 14.6 | % | 14.3 | % | |||
Tangible common equity to tangible assets | 10.2 | % | 9.9 | % | |||
Common equity Tier 1 capital to risk-weighted assets | 11.8 | % | 11.7 | % | |||
Tier 1 leverage capital to average quarterly assets | 10.7 | % | 10.5 | % | |||
Tier 1 capital to risk-weighted assets | 12.2 | % | 12.1 | % | |||
Total capital to risk-weighted assets | 13.0 | % | 12.9 | % | |||
Loans to deposits ratio (1) | 84.1 | % | 82.4 | % | |||
Deposits per branch | $ | 69,742 | $ | 69,256 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Allowance for Loan Losses: | |||||||||||
Balance, beginning of period | $ | 35,042 | $ | 34,475 | $ | 32,086 | |||||
Provision for loan losses | 920 | 1,162 | 1,152 | ||||||||
Net recoveries (charge-offs): | |||||||||||
Commercial business | 56 | (259 | ) | 420 | |||||||
One-to-four family residential | (15 | ) | (15 | ) | — | ||||||
Real estate construction and land development | 618 | 6 | — | ||||||||
Consumer | (469 | ) | (327 | ) | (397 | ) | |||||
Total net recoveries (charge-offs) | 190 | (595 | ) | 23 | |||||||
Balance, end of period | $ | 36,152 | $ | 35,042 | $ | 33,261 |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Other Real Estate Owned: | |||||||||||
Balance, beginning of period | $ | 1,983 | $ | 2,032 | $ | — | |||||
Proceeds from dispositions | (79 | ) | — | — | |||||||
Valuation adjustments | — | (49 | ) | — | |||||||
Balance, end of period | $ | 1,904 | $ | 1,983 | $ | — |
Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Gain on Sale of Loans, net: | |||||||||||
Mortgage loans | $ | 252 | $ | 473 | $ | 652 | |||||
SBA loans | — | — | 222 | ||||||||
Total gain on sale of loans, net | $ | 252 | $ | 473 | $ | 874 |
As of Period End | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Nonperforming Assets: | |||||||
Nonaccrual loans by type: | |||||||
Commercial business | $ | 16,304 | $ | 12,564 | |||
One-to-four family residential | 68 | 71 | |||||
Real estate construction and land development | 923 | 899 | |||||
Consumer | 166 | 169 | |||||
Total nonaccrual loans(1) | 17,461 | 13,703 | |||||
Other real estate owned | 1,904 | 1,983 | |||||
Nonperforming assets | $ | 19,365 | $ | 15,686 | |||
Restructured performing loans | $ | 19,986 | $ | 22,736 | |||
Accruing loans past due 90 days or more | — | — | |||||
Potential problem loans(2) | 94,116 | 101,349 | |||||
Allowance for loan losses to: | |||||||
Loans receivable, net | 0.98 | % | 0.96 | % | |||
Nonaccrual loans | 207.04 | % | 255.73 | % | |||
Nonperforming loans to loans receivable, net | 0.47 | % | 0.37 | % | |||
Nonperforming assets to total assets | 0.36 | % | 0.30 | % |
(1) | At March 31, 2019 and December 31, 2018, $5.5 million and $6.9 million of nonaccrual loans were also considered troubled debt restructured loans, respectively. |
(2) | Potential problem loans are those loans that are currently accruing interest and are not considered impaired, but which are being monitored because the financial information of the borrower causes the Company concern as to their ability to comply with their loan repayment terms. |
As of Period End | |||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||
Loan Composition | |||||||||||||
Commercial business: | |||||||||||||
Commercial and industrial | $ | 838,403 | 22.7 | % | $ | 853,606 | 23.4 | % | |||||
Owner-occupied commercial real estate | 785,316 | 21.2 | 779,814 | 21.3 | |||||||||
Non-owner occupied commercial real estate | 1,335,596 | 36.1 | 1,304,463 | 35.7 | |||||||||
Total commercial business | 2,959,315 | 80.0 | 2,937,883 | 80.4 | |||||||||
One-to-four family residential | 106,502 | 2.9 | 101,763 | 2.8 | |||||||||
Real estate construction and land development: | |||||||||||||
One-to-four family residential | 110,699 | 3.0 | 102,730 | 2.8 | |||||||||
Five or more family residential and commercial properties | 126,379 | 3.4 | 112,730 | 3.1 | |||||||||
Total real estate construction and land development | 237,078 | 6.4 | 215,460 | 5.9 | |||||||||
Consumer | 390,303 | 10.6 | 395,545 | 10.8 | |||||||||
Gross loans receivable | 3,693,198 | 99.9 | 3,650,651 | 99.9 | |||||||||
Deferred loan costs, net | 3,233 | 0.1 | 3,509 | 0.1 | |||||||||
Loans receivable, net | $ | 3,696,431 | 100.0 | % | $ | 3,654,160 | 100.0 | % |
As of Period End | |||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||
Deposit Composition | |||||||||||||
Noninterest bearing demand deposits | $ | 1,338,675 | 30.5 | % | $ | 1,362,268 | 30.7 | % | |||||
Interest bearing demand deposits | 1,293,828 | 29.4 | 1,317,513 | 29.7 | |||||||||
Money market accounts | 740,518 | 16.9 | 765,316 | 17.3 | |||||||||
Savings accounts | 499,568 | 11.3 | 520,413 | 11.8 | |||||||||
Total non-maturity deposits | 3,872,589 | 88.1 | 3,965,510 | 89.5 | |||||||||
Certificates of deposit | 521,126 | 11.9 | 466,892 | 10.5 | |||||||||
Total deposits | $ | 4,393,715 | 100.0 | % | $ | 4,432,402 | 100.0 | % |
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | ||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||
Total loans receivable, net (2) (3) | $ | 3,622,494 | $ | 46,699 | 5.23 | % | $ | 3,615,362 | $ | 47,865 | 5.25 | % | $ | 3,150,869 | $ | 38,159 | 4.91 | % | ||||||||||||||
Taxable securities | 820,981 | 5,823 | 2.88 | 772,925 | 5,343 | 2.74 | 590,623 | 3,529 | 2.42 | |||||||||||||||||||||||
Nontaxable securities (3) | 149,825 | 950 | 2.57 | 160,626 | 1,003 | 2.48 | 223,631 | 1,341 | 2.43 | |||||||||||||||||||||||
Other interest earning assets | 55,959 | 356 | 2.58 | 104,302 | 654 | 2.49 | 53,597 | 218 | 1.65 | |||||||||||||||||||||||
Total interest earning assets | 4,649,259 | 53,828 | 4.70 | % | 4,653,215 | 54,865 | 4.68 | % | 4,018,720 | 43,247 | 4.36 | % | ||||||||||||||||||||
Noninterest earning assets | 668,066 | 672,151 | 534,865 | |||||||||||||||||||||||||||||
Total assets | $ | 5,317,325 | $ | 5,325,366 | $ | 4,553,585 | ||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 502,153 | $ | 1,440 | 1.16 | $ | 496,903 | $ | 1,218 | 0.97 | $ | 423,569 | $ | 760 | 0.73 | |||||||||||||||||
Savings accounts | 507,670 | 674 | 0.54 | 516,620 | 613 | 0.47 | 506,158 | 416 | 0.33 | |||||||||||||||||||||||
Interest bearing demand and money market accounts | 2,051,046 | 1,489 | 0.29 | 2,074,138 | 1,397 | 0.27 | 1,745,795 | 784 | 0.18 | |||||||||||||||||||||||
Total interest bearing deposits | 3,060,869 | 3,603 | 0.48 | 3,087,661 | 3,228 | 0.41 | 2,675,522 | 1,960 | 0.30 | |||||||||||||||||||||||
Junior subordinated debentures | 20,328 | 354 | 7.06 | 20,255 | 335 | 6.56 | 20,035 | 283 | 5.73 | |||||||||||||||||||||||
Securities sold under agreement to repurchase | 33,055 | 47 | 0.58 | 34,046 | 29 | 0.34 | 30,265 | 17 | 0.23 | |||||||||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 1,849 | 15 | 3.29 | 440 | 3 | 2.71 | 35,733 | 150 | 1.70 | |||||||||||||||||||||||
Total interest bearing liabilities | 3,116,101 | 4,019 | 0.52 | 3,142,402 | 3,595 | 0.45 | 2,761,555 | 2,410 | 0.35 | |||||||||||||||||||||||
Noninterest bearing deposits | 1,332,223 | 1,356,186 | 1,113,286 | |||||||||||||||||||||||||||||
Other noninterest bearing liabilities | 102,550 | 76,613 | 63,770 | |||||||||||||||||||||||||||||
Stockholders’ equity | 766,451 | 750,165 | 614,974 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,317,325 | $ | 5,325,366 | $ | 4,553,585 | ||||||||||||||||||||||||||
Net interest income | $ | 49,809 | $ | 51,270 | $ | 40,837 | ||||||||||||||||||||||||||
Net interest spread | 4.18 | % | 4.23 | % | 4.01 | % | ||||||||||||||||||||||||||
Net interest margin | 4.34 | % | 4.37 | % | 4.12 | % |
Three Months Ended | |||||||||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||
Earnings: | |||||||||||||||||||
Net interest income | $ | 49,809 | $ | 51,270 | $ | 51,096 | $ | 43,743 | $ | 40,837 | |||||||||
Provision for loan losses | 920 | 1,162 | 1,065 | 1,750 | 1,152 | ||||||||||||||
Noninterest income | 7,408 | 8,464 | 8,080 | 7,573 | 7,548 | ||||||||||||||
Noninterest expense | 36,525 | 37,274 | 39,461 | 35,706 | 36,747 | ||||||||||||||
Net income | 16,552 | 16,609 | 15,504 | 11,857 | 9,087 | ||||||||||||||
Basic earnings per common share | $ | 0.45 | $ | 0.45 | $ | 0.42 | $ | 0.35 | $ | 0.27 | |||||||||
Diluted earnings per common share | $ | 0.45 | $ | 0.45 | $ | 0.42 | $ | 0.35 | $ | 0.27 | |||||||||
Average Balances: | |||||||||||||||||||
Total loans receivable, net | $ | 3,622,494 | $ | 3,615,362 | $ | 3,618,031 | $ | 3,266,092 | $ | 3,150,869 | |||||||||
Investment securities | 970,806 | 933,551 | 883,919 | 839,196 | 814,254 | ||||||||||||||
Total interest earning assets | 4,649,259 | 4,653,215 | 4,596,734 | 4,156,310 | 4,018,720 | ||||||||||||||
Total assets | 5,317,325 | 5,325,366 | 5,278,565 | 4,726,719 | 4,553,585 | ||||||||||||||
Total interest bearing deposits | 3,060,869 | 3,087,661 | 3,075,720 | 2,727,056 | 2,675,522 | ||||||||||||||
Total noninterest bearing deposits | 1,332,223 | 1,356,186 | 1,314,203 | 1,175,331 | 1,113,286 | ||||||||||||||
Stockholders' equity | 766,451 | 750,165 | 744,389 | 636,735 | 614,974 | ||||||||||||||
Financial Ratios: | |||||||||||||||||||
Return on average assets, annualized | 1.26 | % | 1.24 | % | 1.17 | % | 1.01 | % | 0.81 | % | |||||||||
Return on average common equity, annualized | 8.76 | 8.78 | 8.26 | 7.47 | 5.99 | ||||||||||||||
Return on average tangible common equity, annualized | 13.29 | 13.50 | 12.77 | 10.99 | 8.70 | ||||||||||||||
Efficiency ratio | 63.84 | 62.40 | 66.68 | 69.58 | 75.95 | ||||||||||||||
Noninterest expense to average total assets, annualized | 2.79 | 2.78 | 2.97 | 3.03 | 3.27 | ||||||||||||||
Net interest margin | 4.34 | 4.37 | 4.41 | 4.22 | 4.12 | ||||||||||||||
Net interest spread | 4.18 | 4.23 | 4.27 | 4.09 | 4.01 |
As of Period End or for the Three Months Ended | |||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||
Select Balance Sheet: | |||||||||||
Total assets | $ | 5,342,099 | $ | 5,316,927 | $ | 4,676,250 | |||||
Total loans receivable, net | 3,660,279 | 3,619,118 | 3,248,654 | ||||||||
Investment securities | 985,009 | 976,095 | 821,567 | ||||||||
Deposits | 4,393,715 | 4,432,402 | 3,904,741 | ||||||||
Noninterest bearing demand deposits | 1,338,675 | 1,362,268 | 1,178,202 | ||||||||
Stockholders' equity | 778,191 | 760,723 | 634,708 | ||||||||
Financial Measures: | |||||||||||
Book value per common share | $ | 21.09 | $ | 20.63 | $ | 18.66 | |||||
Tangible book value per common share | 14.03 | 13.54 | 12.66 | ||||||||
Stockholders' equity to assets | 14.6 | % | 14.3 | % | 13.6 | % | |||||
Tangible common equity to tangible assets | 10.2 | 9.9 | 9.6 | ||||||||
Loans to deposits ratio | 84.1 | 82.4 | 84.0 | ||||||||
Credit Quality Metrics: | |||||||||||
Allowance for loan losses to: | |||||||||||
Loans receivable, net | 0.98 | % | 0.96 | % | 1.01 | % | |||||
Nonperforming loans | 207.04 | 255.73 | 211.48 | ||||||||
Nonperforming loans to loans receivable, net | 0.47 | 0.37 | 0.48 | ||||||||
Nonperforming assets to total assets | 0.36 | 0.30 | 0.34 | ||||||||
Net (recoveries) charge-offs on loans to average loans receivable, net | (0.02 | ) | 0.07 | — | |||||||
Other Metrics: | |||||||||||
Number of banking offices | 63 | 64 | 60 | ||||||||
Average number of full-time equivalent employees | 878 | 867 | 796 | ||||||||
Deposits per branch | $ | 69,742 | $ | 69,256 | $ | 65,079 | |||||
Average assets per full-time equivalent employee | $ | 6,054 | $ | 6,142 | $ | 5,720 |