Date of report (Date of earliest event reported): April 25, 2018
|
||
Horizon Bancorp
|
||
(Exact Name of Registrant as Specified in Its Charter)
|
||
Indiana
|
000-10792
|
35-1562417
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
515 Franklin Street, Michigan City, Indiana
|
46360
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
(219) 879-0211
|
||
(Registrant’s Telephone Number, Including Area Code)
|
||
N/A
|
||
(Former Name or Former Address, if Changed Since Last Report)
|
☐
|
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))
|
(d) Exhibits
|
|||||
EXHIBIT INDEX
|
|||||
Exhibit No.
|
Description
|
Location
|
|||
99.1
|
|
Attached
|
Date: April 25, 2018
|
HORIZON BANCORP
|
|
By:
|
/s/ Mark E. Secor | |
Mark E. Secor,
|
||
Executive Vice President and Chief Financial Officer
|
·
|
Net income for the quarter ended March 31, 2018 was $12.8 million, or $0.50 diluted earnings per share, compared to $8.2 million, or $0.37 diluted earnings per share, for the quarter ended March 31, 2017. This represents the highest quarterly net income and diluted earnings per share in the Company’s 145-year history.
|
·
|
Return on average assets was 1.32% for the first quarter of 2018 compared to 1.07% for the first quarter of 2017.
|
·
|
Return on average equity was 11.29% for the first quarter of 2018 compared to 9.66% for the first quarter of 2017.
|
·
|
Total loans increased by an annualized rate of 3.4%, or $23.7 million, during the first quarter of 2018.
|
·
|
Consumer loans increased by an annualized rate of 17.6%, or $20.0 million, during the first quarter of 2018.
|
·
|
Residential mortgage loans increased by an annualized rate of 7.6%, or $11.4 million, during the first quarter of 2018.
|
·
|
Net interest income increased $7.8 million, or 30.7%, to $33.4 million for the three months ended March 31, 2018 compared to $25.6 million for the three months ended March 31, 2017.
|
·
|
Net interest margin was 3.81% for the three months ended March 31, 2018 compared to 3.80% for the three months ended March 31, 2017.
|
·
|
Horizon’s tangible book value per share increased to $12.86 compared to $12.72 and $11.79 at December 31, 2017 and March 31, 2017, respectively. This represents the highest tangible book value per share in the Company’s 145-year history.
|
Non-GAAP Reconciliation of Net Income and Diluted Earnings per Share
|
||||||||||||
(Dollars in Thousands, Except per Share Data, Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31
|
December 31
|
March 31
|
||||||||||
2018
|
2017
|
2017
|
||||||||||
Non-GAAP Reconciliation of Net Income
|
||||||||||||
Net income as reported
|
$
|
12,804
|
$
|
7,650
|
$
|
8,224
|
||||||
Merger expenses
|
-
|
1,444
|
-
|
|||||||||
Tax effect
|
-
|
(418
|
)
|
-
|
||||||||
Net income excluding merger expenses
|
12,804
|
8,676
|
8,224
|
|||||||||
Gain on sale of investment securities
|
(11
|
)
|
-
|
(35
|
)
|
|||||||
Tax effect
|
2
|
-
|
12
|
|||||||||
Net income excluding gain on sale of investment securities
|
12,795
|
8,676
|
8,201
|
|||||||||
Gain on remeasurement of equity interest in Lafayette
|
-
|
(530
|
)
|
-
|
||||||||
Tax effect
|
-
|
78
|
-
|
|||||||||
Net income excluding gain on remeasurement of equity interest in Lafayette
|
12,795
|
8,224
|
8,201
|
|||||||||
Tax reform bill impact
|
-
|
2,426
|
-
|
|||||||||
Net income excluding tax reform bill impact
|
12,795
|
10,650
|
8,201
|
|||||||||
Acquisition-related purchase accounting adjustments (“PAUs”)
|
(2,037
|
)
|
(868
|
)
|
(1,016
|
)
|
||||||
Tax effect
|
428
|
304
|
356
|
|||||||||
Core Net Income
|
$
|
11,186
|
$
|
10,086
|
$
|
7,541
|
||||||
Non-GAAP Reconciliation of Diluted Earnings per Share
|
||||||||||||
Diluted earnings per share (“EPS”) as reported
|
$
|
0.50
|
$
|
0.30
|
$
|
0.37
|
||||||
Merger expenses
|
-
|
0.06
|
-
|
|||||||||
Tax effect
|
-
|
(0.02
|
)
|
-
|
||||||||
Diluted EPS excluding merger expenses
|
0.50
|
0.34
|
0.37
|
|||||||||
Gain on sale of investment securities
|
-
|
-
|
-
|
|||||||||
Tax effect
|
-
|
-
|
-
|
|||||||||
Diluted EPS excluding gain on sale of investment securities
|
0.50
|
0.34
|
0.37
|
|||||||||
Gain on remeasurement of equity interest in Lafayette
|
-
|
(0.02
|
)
|
-
|
||||||||
Tax effect
|
-
|
-
|
-
|
|||||||||
Diluted EPS excluding gain on remeasurement of equity interest in Lafayette
|
0.50
|
0.32
|
0.37
|
|||||||||
Tax reform bill impact
|
-
|
0.10
|
-
|
|||||||||
Diluted EPS excluding tax reform bill impact
|
0.50
|
0.42
|
0.37
|
|||||||||
Acquisition-related PAUs
|
(0.08
|
)
|
(0.03
|
)
|
(0.05
|
)
|
||||||
Tax effect
|
0.02
|
0.01
|
0.02
|
|||||||||
Core Diluted EPS
|
$
|
0.44
|
$
|
0.40
|
$
|
0.34
|
Non-GAAP Reconciliation of Net Interest Margin
|
||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31
|
December 31
|
March 31
|
||||||||||
2018
|
2017
|
2017
|
||||||||||
Non-GAAP Reconciliation of Net Interest Margin
|
||||||||||||
Net interest income as reported
|
$
|
33,411
|
$
|
31,455
|
$
|
25,568
|
||||||
Average interest-earning assets
|
3,580,143
|
3,471,169
|
2,797,429
|
|||||||||
Net interest income as a percentage of average interest-earning assets (“Net Interest Margin”)
|
3.81
|
%
|
3.71
|
%
|
3.80
|
%
|
||||||
Acquisition-related purchase accounting adjustments (“PAUs”)
|
(2,037
|
)
|
(868
|
)
|
(1,016
|
)
|
||||||
Core net interest income
|
31,374
|
30,587
|
24,552
|
|||||||||
Core net interest margin
|
3.55
|
%
|
3.61
|
%
|
3.66
|
%
|
Loan Growth by Type, Excluding Acquired Loans
|
||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||
March 31
|
December 31
|
Amount Change
|
Percent Change
|
|||||||||||||
2018
|
2017
|
|||||||||||||||
Commercial
|
$
|
1,656,374
|
$
|
1,669,728
|
$
|
(13,354
|
)
|
-0.8
|
%
|
|||||||
Residential mortgage
|
618,131
|
606,760
|
11,371
|
1.9
|
%
|
|||||||||||
Consumer
|
480,989
|
460,999
|
19,990
|
4.3
|
%
|
|||||||||||
Subtotal
|
2,755,494
|
2,737,487
|
18,007
|
0.7
|
%
|
|||||||||||
Held for sale loans
|
1,973
|
3,094
|
(1,121
|
)
|
-36.2
|
%
|
||||||||||
Mortgage warehouse loans
|
101,299
|
94,508
|
6,791
|
7.2
|
%
|
|||||||||||
Total loans
|
$
|
2,858,766
|
$
|
2,835,089
|
$
|
23,677
|
0.8
|
%
|
Non-GAAP Allowance for Loan and Lease Loss Detail
|
||||||||||||||||||||||||||||||||
As of March 31, 2018
|
||||||||||||||||||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||||||||||||||
Pre-discount
Loan Balance |
Allowance
for Loan Losses (ALLL) |
Loan
Discount |
ALLL
+ Loan Discount |
Loans, net
|
ALLL/
Pre-discount Loan Balance |
Loan Discount/
Pre-discount Loan Balance |
ALLL+Loan Discount/
Pre-discount Loan Balance |
|||||||||||||||||||||||||
Horizon Legacy
|
$
|
2,152,002
|
$
|
16,474
|
N/A
|
$
|
16,474
|
$
|
2,135,528
|
0.77
|
%
|
0.00
|
%
|
0.77
|
%
|
|||||||||||||||||
Heartland
|
10,848
|
-
|
742
|
742
|
10,106
|
0.00
|
%
|
6.84
|
%
|
6.84
|
%
|
|||||||||||||||||||||
Summit
|
35,397
|
-
|
2,147
|
2,147
|
33,250
|
0.00
|
%
|
6.07
|
%
|
6.07
|
%
|
|||||||||||||||||||||
Peoples
|
105,363
|
-
|
2,609
|
2,609
|
102,754
|
0.00
|
%
|
2.48
|
%
|
2.48
|
%
|
|||||||||||||||||||||
Kosciusko
|
52,298
|
-
|
664
|
664
|
51,634
|
0.00
|
%
|
1.27
|
%
|
1.27
|
%
|
|||||||||||||||||||||
LaPorte
|
121,265
|
-
|
3,445
|
3,445
|
117,820
|
0.00
|
%
|
2.84
|
%
|
2.84
|
%
|
|||||||||||||||||||||
CNB
|
5,561
|
-
|
152
|
152
|
5,409
|
0.00
|
%
|
2.73
|
%
|
2.73
|
%
|
|||||||||||||||||||||
Lafayette
|
118,829
|
-
|
2,170
|
2,170
|
116,659
|
0.00
|
%
|
1.83
|
%
|
1.83
|
%
|
|||||||||||||||||||||
Wolverine
|
257,203
|
-
|
4,346
|
4,346
|
252,857
|
0.00
|
%
|
1.69
|
%
|
1.69
|
%
|
|||||||||||||||||||||
Total
|
$
|
2,858,766
|
$
|
16,474
|
$
|
16,275
|
$
|
32,749
|
$
|
2,826,017
|
0.58
|
%
|
0.57
|
%
|
1.15
|
%
|
Non-GAAP Reconciliation of Tangible Stockholders’ Equity and Tangible Book Value per Share
|
||||||||||||||||||||
(Dollars in Thousands Except per Share Data, Unaudited)
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Total stockholders’ equity
|
$
|
460,416
|
$
|
457,078
|
$
|
392,055
|
$
|
357,259
|
$
|
348,575
|
||||||||||
Less: Intangible assets
|
131,724
|
132,282
|
103,244
|
86,726
|
87,094
|
|||||||||||||||
Total tangible stockholders’ equity
|
$
|
328,692
|
$
|
324,796
|
$
|
288,811
|
$
|
270,533
|
$
|
261,481
|
||||||||||
Common shares outstanding
|
25,555,235
|
25,529,819
|
23,325,459
|
22,176,465
|
22,176,465
|
|||||||||||||||
Tangible book value per common share
|
$
|
12.86
|
$
|
12.72
|
$
|
12.38
|
$
|
12.20
|
$
|
11.79
|
Non-GAAP Reconciliation of Return on Average Assets and Return on Average Common Equity
|
||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
March 31
|
December 31
|
March 31
|
||||||||||
2018
|
2017
|
2017
|
||||||||||
Non-GAAP Reconciliation of Return on Average Assets
|
||||||||||||
Average assets
|
$
|
3,942,837
|
$
|
3,841,551
|
$
|
3,103,468
|
||||||
Return on average assets (“ROAA”) as reported
|
1.32
|
%
|
0.79
|
%
|
1.07
|
%
|
||||||
Merger expenses
|
0.00
|
%
|
0.15
|
%
|
0.00
|
%
|
||||||
Tax effect
|
0.00
|
%
|
-0.04
|
%
|
0.00
|
%
|
||||||
ROAA excluding merger expenses
|
1.32
|
%
|
0.90
|
%
|
1.07
|
%
|
||||||
Gain on sale of investment securities
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
||||||
Tax effect
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
||||||
ROAA excluding gain on sale of investment securities
|
1.32
|
%
|
0.90
|
%
|
1.07
|
%
|
||||||
Gain on remeasurement of equity interest in Lafayette
|
0.00
|
%
|
-0.05
|
%
|
0.00
|
%
|
||||||
Tax effect
|
0.00
|
%
|
0.01
|
%
|
0.00
|
%
|
||||||
ROAA excluding gain on remeasurement of equity interest in Lafayette
|
1.32
|
%
|
0.86
|
%
|
1.07
|
%
|
||||||
Tax reform bill impact
|
0.00
|
%
|
0.25
|
%
|
0.00
|
%
|
||||||
ROAA excluding tax reform bill impact
|
1.32
|
%
|
1.11
|
%
|
1.07
|
%
|
||||||
Acquisition-related purchase accounting adjustments (“PAUs”)
|
-0.21
|
%
|
-0.09
|
%
|
-0.13
|
%
|
||||||
Tax effect
|
0.04
|
%
|
0.03
|
%
|
0.05
|
%
|
||||||
Core ROAA
|
1.15
|
%
|
1.05
|
%
|
0.99
|
%
|
||||||
Non-GAAP Reconciliation of Return on Average Common Equity
|
||||||||||||
Average Common Equity
|
$
|
460,076
|
$
|
449,318
|
$
|
345,092
|
||||||
Return on average common equity (“ROACE”) as reported
|
11.29
|
%
|
6.75
|
%
|
9.66
|
%
|
||||||
Merger expenses
|
0.00
|
%
|
1.28
|
%
|
0.00
|
%
|
||||||
Tax effect
|
0.00
|
%
|
-0.37
|
%
|
0.00
|
%
|
||||||
ROACE excluding merger expenses
|
11.29
|
%
|
7.66
|
%
|
9.66
|
%
|
||||||
Gain on sale of investment securities
|
-0.01
|
%
|
0.00
|
%
|
-0.04
|
%
|
||||||
Tax effect
|
0.00
|
%
|
0.00
|
%
|
0.01
|
%
|
||||||
ROACE excluding gain on sale of investment securities
|
11.28
|
%
|
7.66
|
%
|
9.63
|
%
|
||||||
Gain on remeasurement of equity interest in Lafayette
|
0.00
|
%
|
-0.47
|
%
|
0.00
|
%
|
||||||
Tax effect
|
0.00
|
%
|
0.07
|
%
|
0.00
|
%
|
||||||
ROACE excluding gain on remeasurement of equity interest in Lafayette
|
11.28
|
%
|
7.26
|
%
|
9.63
|
%
|
||||||
Tax reform bill impact
|
0.00
|
%
|
2.14
|
%
|
0.00
|
%
|
||||||
ROACE excluding tax reform bill impact
|
11.28
|
%
|
9.40
|
%
|
9.63
|
%
|
||||||
Acquisition-related purchase accounting adjustments (“PAUs”)
|
-1.80
|
%
|
-0.77
|
%
|
-1.19
|
%
|
||||||
Tax effect
|
0.38
|
%
|
0.27
|
%
|
0.42
|
%
|
||||||
Core ROACE
|
9.86
|
%
|
8.90
|
%
|
8.86
|
%
|
Contact:
|
Horizon Bancorp
|
Mark E. Secor
|
|
Chief Financial Officer
|
|
(219) 873-2611
|
|
Fax: (219) 874-9280
|
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Balance sheet:
|
||||||||||||||||||||
Total assets
|
$
|
3,969,750
|
$
|
3,964,303
|
$
|
3,519,501
|
$
|
3,321,178
|
$
|
3,169,643
|
||||||||||
Investment securities
|
714,425
|
710,113
|
708,449
|
704,525
|
673,090
|
|||||||||||||||
Commercial loans
|
1,656,374
|
1,669,728
|
1,322,953
|
1,190,502
|
1,148,277
|
|||||||||||||||
Mortgage warehouse loans
|
101,299
|
94,508
|
95,483
|
123,757
|
89,360
|
|||||||||||||||
Residential mortgage loans
|
618,131
|
606,760
|
571,062
|
549,997
|
533,646
|
|||||||||||||||
Consumer loans
|
480,989
|
460,999
|
436,327
|
403,468
|
375,670
|
|||||||||||||||
Earning assets
|
3,591,296
|
3,563,307
|
3,153,230
|
2,990,924
|
2,845,922
|
|||||||||||||||
Non-interest bearing deposit accounts
|
602,175
|
601,805
|
563,536
|
508,305
|
502,400
|
|||||||||||||||
Interest bearing transaction accounts
|
1,619,859
|
1,712,246
|
1,536,169
|
1,401,407
|
1,432,228
|
|||||||||||||||
Time deposits
|
711,642
|
566,952
|
508,570
|
452,208
|
509,071
|
|||||||||||||||
Borrowings
|
520,300
|
564,157
|
458,152
|
485,304
|
319,993
|
|||||||||||||||
Subordinated debentures
|
37,699
|
37,653
|
37,607
|
37,562
|
37,516
|
|||||||||||||||
Total stockholders’ equity
|
460,416
|
457,078
|
392,055
|
357,259
|
348,575
|
|||||||||||||||
Three Months Ended
|
||||||||||||||||||||
Income statement:
|
||||||||||||||||||||
Net interest income
|
$
|
33,411
|
$
|
31,455
|
$
|
27,879
|
$
|
27,198
|
$
|
25,568
|
||||||||||
Provision for loan losses
|
567
|
1,100
|
710
|
330
|
330
|
|||||||||||||||
Non-interest income
|
8,318
|
9,344
|
8,021
|
8,212
|
7,559
|
|||||||||||||||
Non-interest expense
|
25,837
|
26,291
|
24,513
|
22,488
|
21,521
|
|||||||||||||||
Income tax expense
|
2,521
|
5,758
|
2,506
|
3,520
|
3,052
|
|||||||||||||||
Net income
|
$
|
12,804
|
$
|
7,650
|
$
|
8,171
|
$
|
9,072
|
$
|
8,224
|
||||||||||
Per share data:
|
||||||||||||||||||||
Basic earnings per share
|
$
|
0.50
|
$
|
0.30
|
$
|
0.36
|
$
|
0.41
|
$
|
0.37
|
||||||||||
Diluted earnings per share
|
0.50
|
0.30
|
0.36
|
0.41
|
0.37
|
|||||||||||||||
Cash dividends delcared per common share
|
0.15
|
0.13
|
0.13
|
0.13
|
0.11
|
|||||||||||||||
Book value per common share
|
18.02
|
17.90
|
16.81
|
16.11
|
15.72
|
|||||||||||||||
Tangible book value per common share
|
12.86
|
12.72
|
12.38
|
12.20
|
11.79
|
|||||||||||||||
Market value - high
|
30.88
|
29.21
|
29.17
|
27.50
|
28.09
|
|||||||||||||||
Market value - low
|
$
|
26.80
|
$
|
25.99
|
$
|
25.30
|
$
|
24.73
|
$
|
24.91
|
||||||||||
Weighted average shares outstanding - Basic
|
25,537,597
|
25,140,800
|
22,580,160
|
22,176,465
|
22,175,526
|
|||||||||||||||
Weighted average shares outstanding - Diluted
|
25,645,874
|
25,264,675
|
22,715,273
|
22,322,390
|
22,326,071
|
|||||||||||||||
Key ratios:
|
||||||||||||||||||||
Return on average assets
|
1.32
|
%
|
0.79
|
%
|
0.96
|
%
|
1.12
|
%
|
1.07
|
%
|
||||||||||
Return on average common stockholders’ equity
|
11.29
|
6.75
|
8.92
|
10.24
|
9.66
|
|||||||||||||||
Net interest margin
|
3.81
|
3.71
|
3.71
|
3.84
|
3.80
|
|||||||||||||||
Loan loss reserve to total loans
|
0.58
|
0.58
|
0.64
|
0.66
|
0.70
|
|||||||||||||||
Average equity to average assets
|
11.67
|
11.70
|
10.74
|
10.94
|
11.12
|
|||||||||||||||
Bank only capital ratios:
|
||||||||||||||||||||
Tier 1 capital to average assets
|
9.66
|
9.89
|
9.90
|
9.77
|
10.13
|
|||||||||||||||
Tier 1 capital to risk weighted assets
|
12.32
|
12.29
|
12.33
|
12.69
|
13.22
|
|||||||||||||||
Total capital to risk weighted assets
|
12.87
|
12.85
|
12.93
|
13.31
|
13.87
|
|||||||||||||||
Loan data:
|
||||||||||||||||||||
Substandard loans
|
$
|
43,035
|
$
|
46,162
|
$
|
36,883
|
$
|
34,870
|
$
|
30,865
|
||||||||||
30 to 89 days delinquent
|
8,932
|
9,329
|
6,284
|
4,555
|
5,476
|
|||||||||||||||
90 days and greater delinquent - accruing interest
|
$
|
30
|
$
|
167
|
$
|
162
|
$
|
160
|
$
|
245
|
||||||||||
Trouble debt restructures - accruing interest
|
1,899
|
1,958
|
2,015
|
1,924
|
1,647
|
|||||||||||||||
Trouble debt restructures - non-accrual
|
1,090
|
1,013
|
1,192
|
668
|
998
|
|||||||||||||||
Non-accrual loans
|
12,062
|
13,276
|
9,065
|
8,811
|
6,944
|
|||||||||||||||
Total non-performing loans
|
$
|
15,081
|
$
|
16,414
|
$
|
12,434
|
$
|
11,563
|
$
|
9,834
|
||||||||||
Non-performing loans to total loans
|
0.53
|
%
|
0.58
|
%
|
0.51
|
%
|
0.51
|
%
|
0.46
|
%
|
Allocation of the Allowance for Loan and Lease Losses
|
||||||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Commercial
|
$
|
7,840
|
$
|
9,093
|
$
|
8,335
|
$
|
8,312
|
$
|
8,071
|
||||||||||
Real estate
|
1,930
|
2,188
|
2,129
|
2,129
|
1,697
|
|||||||||||||||
Mortgage warehousing
|
1,030
|
1,030
|
1,048
|
1,048
|
1,042
|
|||||||||||||||
Consumer
|
5,674
|
4,083
|
4,074
|
4,097
|
4,244
|
|||||||||||||||
Total
|
$
|
16,474
|
$
|
16,394
|
$
|
15,586
|
$
|
15,586
|
$
|
15,054
|
Net Charge-offs (Recoveries)
|
||||||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Commercial
|
$
|
(38
|
)
|
$
|
84
|
$
|
158
|
$
|
219
|
$
|
(130
|
)
|
||||||||
Real estate
|
6
|
(9
|
)
|
24
|
(8
|
)
|
38
|
|||||||||||||
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
519
|
217
|
(31
|
)
|
146
|
205
|
||||||||||||||
Total
|
$
|
487
|
$
|
292
|
$
|
151
|
$
|
357
|
$
|
113
|
||||||||||
Percent of net charge-offs to average
loans outstanding for the period |
0.02
|
%
|
0.01
|
%
|
0.01
|
%
|
0.02
|
%
|
0.01
|
%
|
Total Non-performing Loans
|
||||||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Commercial
|
$
|
6,778
|
$
|
7,354
|
$
|
3,582
|
$
|
3,033
|
$
|
1,783
|
||||||||||
Real estate
|
5,276
|
5,716
|
5,545
|
5,285
|
5,057
|
|||||||||||||||
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
3,027
|
3,344
|
3,307
|
3,245
|
2,994
|
|||||||||||||||
Total
|
$
|
15,081
|
$
|
16,414
|
$
|
12,434
|
$
|
11,563
|
$
|
9,834
|
||||||||||
Non-performing loans to total loans
|
0.53
|
%
|
0.58
|
%
|
0.51
|
%
|
0.51
|
%
|
0.46
|
%
|
Other Real Estate Owned and Repossessed Assets
|
||||||||||||||||||||
(Dollars in Thousands, Unaudited)
|
||||||||||||||||||||
March 31
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||||||
2018
|
2017
|
2017
|
2017
|
2017
|
||||||||||||||||
Commercial
|
$
|
547
|
$
|
578
|
$
|
324
|
$
|
409
|
$
|
542
|
||||||||||
Real estate
|
281
|
200
|
1,443
|
1,805
|
2,413
|
|||||||||||||||
Mortgage warehousing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
42
|
60
|
26
|
21
|
20
|
|||||||||||||||
Total
|
$
|
870
|
$
|
838
|
$
|
1,793
|
$
|
2,235
|
$
|
2,975
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||
March 31, 2018
|
March 31, 2017
|
|||||||||||||||||||||
Average
Balance |
Interest
|
Average
Rate |
Average
Balance |
Interest
|
Average
Rate |
|||||||||||||||||
Assets
|
||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||
Federal funds sold
|
$
|
3,714
|
$
|
14
|
1.53
|
%
|
$
|
3,034
|
$
|
5
|
0.67
|
%
|
||||||||||
Interest-earning deposits
|
22,962
|
90
|
1.59
|
%
|
24,748
|
69
|
1.13
|
%
|
||||||||||||||
Investment securities - taxable
|
421,068
|
2,326
|
2.24
|
%
|
398,871
|
2,332
|
2.37
|
%
|
||||||||||||||
Investment securities - non-taxable(1)
|
307,921
|
1,865
|
2.88
|
%
|
270,522
|
1,637
|
3.41
|
%
|
||||||||||||||
Loans receivable(2)(3)
|
2,824,478
|
35,131
|
5.04
|
%
|
2,100,254
|
24,791
|
4.79
|
%
|
||||||||||||||
Total interest-earning assets(1)
|
3,580,143
|
39,426
|
4.50
|
%
|
2,797,429
|
28,834
|
4.28
|
%
|
||||||||||||||
Non-interest-earning assets
|
||||||||||||||||||||||
Cash and due from banks
|
43,809
|
40,994
|
||||||||||||||||||||
Allowance for loan losses
|
(16,342
|
)
|
(14,937
|
)
|
||||||||||||||||||
Other assets
|
335,227
|
279,982
|
||||||||||||||||||||
Total average assets
|
$
|
3,942,837
|
$
|
3,103,468
|
||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||
Interest-bearing deposits
|
$
|
2,304,829
|
$
|
2,871
|
0.51
|
%
|
$
|
1,960,337
|
$
|
1,753
|
0.36
|
%
|
||||||||||
Borrowings
|
528,066
|
2,572
|
1.98
|
%
|
249,923
|
937
|
1.52
|
%
|
||||||||||||||
Subordinated debentures
|
36,477
|
572
|
6.36
|
%
|
36,290
|
576
|
6.44
|
%
|
||||||||||||||
Total interest-bearing liabilities
|
2,869,372
|
6,015
|
0.85
|
%
|
2,246,550
|
3,266
|
0.59
|
%
|
||||||||||||||
Non-interest-bearing liabilities
|
||||||||||||||||||||||
Demand deposits
|
595,644
|
491,154
|
||||||||||||||||||||
Accrued interest payable and other liabilities
|
17,745
|
20,672
|
||||||||||||||||||||
Stockholders’ equity
|
460,076
|
345,092
|
||||||||||||||||||||
Total average liabilities and stockholders’ equity
|
$
|
3,942,837
|
$
|
3,103,468
|
||||||||||||||||||
Net interest income/spread
|
$
|
33,411
|
3.65
|
%
|
$
|
25,568
|
3.69
|
%
|
||||||||||||||
Net interest income as a percent of average interest-earning assets(1)
|
3.81
|
%
|
3.80
|
%
|
(1)
|
Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. The average rate is presented on a tax equivalent basis.
|
||||
(2)
|
Includes fees on loans. The inclusion of loan fees does not have a material effect on the average interest rate.
|
||||
(3)
|
Non-accruing loans for the purpose of the computations above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. The average rate is presented on a tax equivalent basis.
|
March 31
|
December 31
|
|||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
63,591
|
$
|
76,441
|
||||
Investment securities, available for sale
|
507,736
|
509,665
|
||||||
Investment securities, held to maturity (fair value of $203,896 and $201,085)
|
206,689
|
200,448
|
||||||
Loans held for sale
|
1,973
|
3,094
|
||||||
Loans, net of allowance for loan losses of $16,474 and $16,394
|
2,840,319
|
2,815,601
|
||||||
Premises and equipment, net
|
75,408
|
75,529
|
||||||
Federal Home Loan Bank stock
|
18,105
|
18,105
|
||||||
Goodwill
|
119,880
|
119,880
|
||||||
Other intangible assets
|
11,844
|
12,402
|
||||||
Interest receivable
|
12,044
|
16,244
|
||||||
Cash value of life insurance
|
76,366
|
75,931
|
||||||
Other assets
|
35,795
|
40,963
|
||||||
Total assets
|
$
|
3,969,750
|
$
|
3,964,303
|
||||
Liabilities
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
602,175
|
$
|
601,805
|
||||
Interest bearing
|
2,331,501
|
2,279,198
|
||||||
Total deposits
|
2,933,676
|
2,881,003
|
||||||
Borrowings
|
520,300
|
564,157
|
||||||
Subordinated debentures
|
37,699
|
37,653
|
||||||
Interest payable
|
1,216
|
886
|
||||||
Other liabilities
|
16,443
|
23,526
|
||||||
Total liabilities
|
3,509,334
|
3,507,225
|
||||||
Commitments and contingent liabilities
|
||||||||
Stockholders’ Equity
|
||||||||
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares
|
-
|
-
|
||||||
Common stock, no par value, Authorized 66,000,000 shares
|
||||||||
Issued 25,580,304 and 25,549,069 shares,
Outstanding 25,555,235 and 25,529,819 shares
|
-
|
-
|
||||||
Additional paid-in capital
|
275,302
|
275,059
|
||||||
Retained earnings
|
195,292
|
185,570
|
||||||
Accumulated other comprehensive loss
|
(10,178
|
)
|
(3,551
|
)
|
||||
Total stockholders’ equity
|
460,416
|
457,078
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,969,750
|
$
|
3,964,303
|
Three Months Ended
|
||||||||
March 31
|
||||||||
2018
|
2017
|
|||||||
Interest Income
|
||||||||
Loans receivable
|
$
|
35,131
|
$
|
24,791
|
||||
Investment securities
|
||||||||
Taxable
|
2,430
|
2,406
|
||||||
Tax exempt
|
1,865
|
1,637
|
||||||
Total interest income
|
39,426
|
28,834
|
||||||
Interest Expense
|
||||||||
Deposits
|
2,871
|
1,753
|
||||||
Borrowed funds
|
2,572
|
937
|
||||||
Subordinated debentures
|
572
|
576
|
||||||
Total interest expense
|
6,015
|
3,266
|
||||||
Net Interest Income
|
33,411
|
25,568
|
||||||
Provision for loan losses
|
567
|
330
|
||||||
Net Interest Income after Provision for Loan Losses
|
32,844
|
25,238
|
||||||
Non-interest Income
|
||||||||
Service charges on deposit accounts
|
1,888
|
1,400
|
||||||
Wire transfer fees
|
150
|
150
|
||||||
Interchange fees
|
1,328
|
1,176
|
||||||
Fiduciary activities
|
1,925
|
1,922
|
||||||
Gains (losses) on sale of investment securities (includes $11 and $35 for the three months ended March 31, 2018 and 2017, respectively, related to accumulated other comprehensive earnings reclassifications)
|
11
|
35
|
||||||
Gain on sale of mortgage loans
|
1,423
|
1,914
|
||||||
Mortgage servicing income net of impairment
|
349
|
447
|
||||||
Increase in cash value of bank owned life insurance
|
435
|
464
|
||||||
Other income
|
809
|
51
|
||||||
Total non-interest income
|
8,318
|
7,559
|
||||||
Non-interest Expense
|
||||||||
Salaries and employee benefits
|
14,373
|
11,709
|
||||||
Net occupancy expenses
|
2,966
|
2,452
|
||||||
Data processing
|
1,696
|
1,307
|
||||||
Professional fees
|
501
|
613
|
||||||
Outside services and consultants
|
1,264
|
1,222
|
||||||
Loan expense
|
1,257
|
1,107
|
||||||
FDIC insurance expense
|
310
|
263
|
||||||
Other losses
|
146
|
50
|
||||||
Other expense
|
3,324
|
2,798
|
||||||
Total non-interest expense
|
25,837
|
21,521
|
||||||
Income Before Income Taxes
|
15,325
|
11,276
|
||||||
Income tax expense (includes $2 and $12 for the three months ended March 31, 2018 and 2017, respectively, related to income tax expense from reclassification items)
|
2,521
|
3,052
|
||||||
Net Income
|
$
|
12,804
|
$
|
8,224
|
||||
Basic Earnings Per Share
|
$
|
0.50
|
$
|
0.37
|
||||
Diluted Earnings Per Share
|
0.50
|
0.37
|
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