Origin Bancorp, Inc. Reports Earnings for Fourth Quarter and 2022 Full Year
Net income for the year ended
“As I look back on the past quarter and 2022 as a whole, I’m very pleased with where we are as a company and how we are operating from a position of strength,” said
(1) Adjusted net income, adjusted diluted earnings per share and adjusted PTPP earnings are non-GAAP financial measures, please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.
Financial Highlights
- The fully tax-equivalent net interest margin (“NIM”) was 3.81% for the quarter ended
December 31, 2022 , reflecting a 13 basis point increase from the linked quarter and a 75 basis point increase from the quarter endedDecember 31, 2021 . The fully tax-equivalent NIM, adjusted(1), which excludes the net purchase accounting accretion from the net interest income for the quarter endedDecember 31, 2022 , was 3.73%, reflecting a 12 basis point increase from the linked quarter. - Net interest income for the quarter ended
December 31, 2022 , was$84.7 million , reflecting a$6.2 million , or 7.9% increase, compared to the linked quarter, and a$30.6 million , or 56.4% increase, compared to the prior year quarter. - The Company's annualized returns on average assets and average equity were 1.23% and 12.80%, respectively, for the quarter ended
December 31, 2022 , compared to 0.70% and 6.86%, respectively, for the linked quarter. - Excluding mortgage warehouse lines of credit, total LHFI were
$6.81 billion , reflecting an increase of$383.0 million , or 6.0%, compared toSeptember 30, 2022 . - Provision for credit losses was a net expense of
$4.6 million for the quarter endedDecember 31, 2022 , compared to a net expense of$16.9 million for the linked quarter. The decrease was primarily due to the merger with BTH, which required a Day 1 Current Expected Credit Loss ("CECL") loan provision of$14 .9 million during the linked quarter. - The allowance for loan credit losses ("ALCL") to total LHFI, adjusted (2) was 1.28% at
December 31, 2022 , compared to 1.29% atSeptember 30, 2022 . - Total nonperforming LHFI to total LHFI was 0.14% at
December 31, 2022 , compared to 0.20% atSeptember 30, 2022 , and 0.48% atDecember 31, 2021 . The ALCL to nonperforming LHFI was 876.87% atDecember 31, 2022 , compared to 594.11% and 259.35% at the linked quarter and prior year quarter ends, respectively.
(1) Fully tax equivalent NIM, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
(2) The ALCL to total LHFI, adjusted, is calculated at
Results of Operations for the Three Months Ended
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended
Excluding the net purchase accounting accretion, the
The table below presents the estimated loan and deposit accretion and subordinated indebtedness amortization schedule resulting from merger purchase accounting adjustments for the periods shown.
Loan Accretion Income |
Deposit Accretion Income |
Subordinated Indebtedness Amortization Expense |
Total Impact to Net Interest Income |
||||||||||
3Q2022 | $ | 1,187 | $ | 238 | $ | (10 | ) | $ | 1,415 | ||||
4Q2022 | 1,653 | 259 | (15 | ) | 1,897 | ||||||||
Total actual realized net purchase accounting accretion | $ | 2,840 | $ | 497 | $ | (25 | ) | $ | 3,312 | ||||
For the years ending (estimated): | |||||||||||||
2023 | $ | 2,023 | $ | 209 | $ | (62 | ) | $ | 2,170 | ||||
Thereafter | 223 | 23 | (706 | ) | (460 | ) | |||||||
Total remaining net purchase accounting accretion at |
$ | 2,246 | $ | 232 | $ | (768 | ) | $ | 1,710 |
The increase in net interest income for the three-month period ended
The
The yield on LHFI was 5.63% and 4.94% for the three months ended
The fully tax-equivalent NIM was 3.81% for the quarter ended
Credit Quality
The table below includes key credit quality information:
At and For the Three Months Ended | $ Change | % Change | ||||||||||||||||
(Dollars in thousands, unaudited) | 2022 |
2022 |
2021 |
Linked Quarter |
Linked Quarter |
|||||||||||||
Past due LHFI | $ | 10,932 | $ | 10,866 | $ | 25,615 | $ | 66 | 0.6 | % | ||||||||
ALCL | 87,161 | 83,359 | 64,586 | 3,802 | 4.6 | |||||||||||||
Classified loans | 74,203 | 69,781 | 69,372 | 4,422 | 6.3 | |||||||||||||
Total nonperforming LHFI | 9,940 | 14,031 | 24,903 | (4,091 | ) | (29.2 | ) | |||||||||||
Provision for credit losses | 4,624 | 16,942 | (2,647 | ) | (12,318 | ) | (72.7 | ) | ||||||||||
Net charge-offs | 180 | 1,078 | 2,693 | (898 | ) | (83.3 | ) | |||||||||||
Credit quality ratios(1): | ||||||||||||||||||
ALCL to nonperforming LHFI | 876.87 | % | 594.11 | % | 259.35 | % | N/A | 28276 bp | ||||||||||
ALCL to total LHFI | 1.23 | 1.21 | 1.23 | N/A | 2 bp | |||||||||||||
ALCL to total LHFI, adjusted(2) | 1.28 | 1.29 | 1.43 | N/A | -1 bp | |||||||||||||
Nonperforming LHFI to LHFI | 0.14 | 0.20 | 0.48 | N/A | -6 bp | |||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.01 | 0.07 | 0.21 | N/A | -6 bp |
___________________________
(1) Please see the Loan Data schedule at the back of this document for additional information.
(2) The ALCL to total LHFI, adjusted, is calculated at
The Company recorded a credit loss provision of
Overall, most credit metrics improved at
Noninterest Income
Noninterest income for the quarter ended
The gain on sales of securities, net, decreased
The
Noninterest Expense
Noninterest expense for the quarter ended
The
The
The
The
The
Merger-related expenses declined
The
Income Taxes
The effective tax rate was 18.8% during the quarter ended
The effective tax rate for the quarter ended
Financial Condition
Loans
- Total LHFI at
December 31, 2022 , were$7.09 billion , an increase of$207.3 million , or 3.0%, from$6.88 billion atSeptember 30, 2022 , and an increase of$1.86 billion , or 35.5%, compared toDecember 31, 2021 . - Total real estate loans were
$4.73 billion atDecember 31, 2022 , an increase of$301.0 million , or 6.8%, from the linked quarter. Mortgage warehouse lines of credit totaled$284.9 million atDecember 31, 2022 , a decrease of$175.7 million , or 38.1%, compared to the linked quarter. - The largest contributor to the increase in LHFI was commercial real estate which increased
$130.3 million , or 6.0%, compared to the linked quarter.
Securities
- Total securities at
December 31, 2022 , were$1.66 billion , a decrease of$30 .7 million, or 1.8%, compared to the linked quarter and an increase of$124.1 million , or 8.1%, compared toDecember 31, 2021 . - The decrease was due to maturities, scheduled principal payments, and calls; there were no security sales during the current quarter.
- Accumulated other comprehensive loss, net of taxes, associated with the AFS portfolio improved by
$15.4 million during the quarter endedDecember 31, 2022 . - The total securities portfolio effective duration was 5.1 years as of
December 31, 2022 , compared to 5.2 years as ofSeptember 30, 2022 .
Deposits
- Total deposits at
December 31, 2022 , were$7.78 billion , a decrease of$1 .6 million compared to the linked quarter, and represented an increase of$1.21 billion , or 18.3%, fromDecember 31, 2021 . - For the quarters ended
December 31, 2022 , andDecember 31, 2021 , average noninterest-bearing deposits as a percentage of total average deposits were 33.6%, compared to 34.9% for the quarter endedSeptember 30, 2022 .
Borrowings
- FHLB advances and other borrowings at
December 31, 2022 , were$639 .2 million, an increase of$188 .8 million, or 41.9%, compared to the linked quarter and represented an increase of$329 .4 million, or 106.3%, fromDecember 31, 2021 . - Average FHLB advances were
$511 .9 million for the quarter endedDecember 31, 2022 , a decrease of$12 .0 million from$523 .9 million for the quarter endedSeptember 30, 2022 .
Stockholders’ Equity
- Stockholders’ equity was
$949.9 million atDecember 31, 2022 , an increase of$42.9 million , or 4.7%, compared to$907.0 million atSeptember 30, 2022 , and an increase of$219.7 million , compared to$730.2 million , or 30.1%, atDecember 31, 2021 . - The increase in stockholders’ equity from the linked quarter is primarily due to net income of
$29.5 million and an increase in other comprehensive income, net of tax, of$15.4 million retained during the current quarter. - The increase from
December 31, 2021 , is primarily associated with the BTH merger, which drove a$306 .3 million increase in stockholders' equity and net income retained during the year endedDecember 31, 2022 , partially offset by other comprehensive loss, net of tax and dividends declared during the year.
Conference Call
Origin will hold a conference call to discuss its fourth quarter and 2022 full year results on
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.
About Origin
Non-GAAP Financial Measures
Origin reports its results in accordance with
Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategy, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding and efforts to respond to the COVID-19 pandemic and changes to interest rates by the
New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Furthermore, many of these risks and uncertainties are currently amplified by, may continue to be amplified by, or may, in the future, be amplified by the COVID-19 pandemic and the impact of varying governmental responses that affect Origin's customers and the economies where they operate. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.
Contact:
Investor Relations
318-497-3177
chris@origin.bank
Media Contact
318-232-7472
rkilpatrick@origin.bank
Selected Quarterly Financial Data
Three Months Ended | |||||||||||||||||||
2022 |
2022 |
2022 |
2022 |
2021 |
|||||||||||||||
Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||
Net interest income | $ | 84,749 | $ | 78,523 | $ | 59,504 | $ | 52,502 | $ | 54,180 | |||||||||
Provision for credit losses | 4,624 | 16,942 | 3,452 | (327 | ) | (2,647 | ) | ||||||||||||
Noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||
Noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||
Income before income tax expense | 36,300 | 19,063 | 26,118 | 25,961 | 33,182 | ||||||||||||||
Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||
Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||
Adjusted net income(1) | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||
Adjusted PTPP earnings ("Adjusted PTPP")(1) | 42,103 | 39,905 | 30,377 | 26,205 | 25,258 | ||||||||||||||
Basic earnings per common share | 0.96 | 0.57 | 0.90 | 0.87 | 1.21 | ||||||||||||||
Diluted earnings per common share | 0.95 | 0.57 | 0.90 | 0.87 | 1.20 | ||||||||||||||
Adjusted diluted earnings per common share(1) | 0.99 | 1.09 | 0.92 | 0.89 | 1.02 | ||||||||||||||
Dividends declared per common share | 0.15 | 0.15 | 0.15 | 0.13 | 0.13 | ||||||||||||||
Weighted average common shares outstanding - basic | 30,674,389 | 28,298,984 | 23,740,611 | 23,700,550 | 23,484,056 | ||||||||||||||
Weighted average common shares outstanding - diluted | 30,867,511 | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | ||||||||||||||
Balance sheet data | |||||||||||||||||||
Total LHFI | $ | 7,090,022 | $ | 6,882,681 | $ | 5,528,093 | $ | 5,194,406 | $ | 5,231,331 | |||||||||
Total assets | 9,686,067 | 9,462,639 | 8,111,524 | 8,112,295 | 7,861,285 | ||||||||||||||
Total deposits | 7,775,702 | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | ||||||||||||||
Total stockholders’ equity | 949,943 | 907,024 | 646,373 | 676,865 | 730,211 | ||||||||||||||
Performance metrics and capital ratios | |||||||||||||||||||
Yield on LHFI | 5.63 | % | 4.94 | % | 4.26 | % | 4.08 | % | 4.11 | % | |||||||||
Yield on interest-earnings assets | 4.96 | 4.23 | 3.53 | 3.13 | 3.35 | ||||||||||||||
Cost of interest-bearing deposits | 1.54 | 0.64 | 0.29 | 0.26 | 0.28 | ||||||||||||||
Cost of total deposits | 1.02 | 0.41 | 0.19 | 0.17 | 0.19 | ||||||||||||||
NIM - fully tax equivalent ("FTE") | 3.81 | 3.68 | 3.23 | 2.86 | 3.06 | ||||||||||||||
NIM - FTE, adjusted(2) | 3.73 | 3.61 | 3.20 | 2.76 | 2.92 | ||||||||||||||
Return on average assets (annualized) ("ROAA") | 1.23 | 0.70 | 1.08 | 1.04 | 1.49 | ||||||||||||||
Adjusted ROAA (annualized)(1) | 1.27 | 1.34 | 1.11 | 1.07 | 1.27 | ||||||||||||||
Adjusted PTPP ROAA (annualized)(1) | 1.75 | 1.72 | 1.53 | 1.32 | 1.33 | ||||||||||||||
Return on average stockholders’ equity (annualized) ("ROAE") | 12.80 | 6.86 | 12.81 | 11.61 | 15.70 | ||||||||||||||
Adjusted ROAE (annualized)(1) | 13.20 | 13.14 | 13.19 | 11.86 | 13.39 | ||||||||||||||
Adjusted PTPP ROAE (annualized)(1) | 18.28 | 16.86 | 18.26 | 14.71 | 14.00 | ||||||||||||||
Book value per common share(3) | $ | 30.90 | $ | 29.58 | $ | 27.15 | $ | 28.50 | $ | 30.75 | |||||||||
Tangible book value per common share(1)(3) | 25.09 | 23.41 | 25.05 | 26.37 | 28.59 | ||||||||||||||
Adjusted tangible book value per common share(1) | 30.29 | 29.13 | 29.92 | 29.15 | 28.35 | ||||||||||||||
Return on average tangible common equity ("ROATCE")(1) | 16.00 | % | 8.03 | % | 13.86 | % | 12.49 | % | 16.39 | % | |||||||||
Adjusted return on average tangible common equity ("adjusted ROATCE")(1) | 16.50 | % | 15.38 | % | 14.27 | % | 12.77 | % | 13.98 | % | |||||||||
Efficiency ratio(4) | 58.32 | % | 60.97 | % | 59.89 | % | 62.53 | % | 56.92 | % | |||||||||
Core efficiency ratio(1) | 53.06 | 52.16 | 54.10 | 58.93 | 57.27 | ||||||||||||||
Common equity tier 1 to risk-weighted assets(5) | 10.93 | % | 10.51 | % | 10.81 | % | 11.20 | % | 11.20 | % | |||||||||
Tier 1 capital to risk-weighted assets(5) | 11.12 | 10.70 |
10.95 | 11.35 | 11.36 | ||||||||||||||
Total capital to risk-weighted assets(5) | 14.23 | 13.79 | 14.09 | 14.64 | 14.77 | ||||||||||||||
Tier 1 leverage ratio(5) | 9.66 | 9.63 | 9.09 | 8.84 | 9.20 |
__________________________
(1) Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2) NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the quarters ended
(3) A decline in accumulated other comprehensive loss during the year ended
(4) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(5)
Selected Year-to-Date Financial Data
Year Ended |
|||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | |||||
Income statement and share amounts | (Unaudited) | ||||||
Net interest income | $ | 275,278 | $ | 216,252 | |||
Provision for credit losses | 24,691 | (10,765 | ) | ||||
Noninterest income | 57,274 | 62,193 | |||||
Noninterest expense | 200,419 | 156,779 | |||||
Income before income tax expense | 107,442 | 132,431 | |||||
Income tax expense | 19,727 | 23,885 | |||||
Net income | $ | 87,715 | $ | 108,546 | |||
Adjusted net income(1) | $ | 104,579 | $ | 103,047 | |||
Adjusted PTPP earnings(1) | 138,590 | 114,705 | |||||
Basic earnings per common share(2) | 3.29 | 4.63 | |||||
Diluted earnings per common share(2) | 3.28 | 4.60 | |||||
Adjusted diluted earnings per common share(1) | 3.91 | 4.36 | |||||
Dividends declared per common share | 0.58 | 0.49 | |||||
Weighted average common shares outstanding - basic | 26,627,476 | 23,431,504 | |||||
Weighted average common shares outstanding - diluted | 26,760,592 | 23,608,586 | |||||
Performance metrics | |||||||
Yield on LHFI | 4.81 | % | 4.05 | % | |||
Yield on interest-earning assets | 4.02 | 3.42 | |||||
Cost of interest-bearing deposits | 0.72 | 0.32 | |||||
Cost of total deposits | 0.47 | 0.22 | |||||
NIM, FTE | 3.42 | 3.10 | |||||
NIM - FTE, adjusted(3) | 3.38 | 3.01 | |||||
ROAA | 1.01 | 1.45 | |||||
Adjusted ROAA(1) | 1.20 | 1.38 | |||||
Adjusted PTPP ROAA(1) | 1.60 | 1.54 | |||||
ROAE | 10.81 | 15.79 | |||||
Adjusted ROAE(1) | 12.89 | 14.99 | |||||
Adjusted PTPP ROAE(1) | 17.08 | 16.68 | |||||
ROATCE(1) | 12.43 | 16.51 | |||||
Adjusted ROATCE(1) | 14.82 | 15.67 | |||||
Efficiency ratio(4) | 60.27 | 56.31 | |||||
Core efficiency ratio(1) | 54.16 | 52.87 |
____________________________
(1) Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, ROATCE, adjusted ROATCE and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2) Due to the combined impact of the issuance of common stock shares due to the BTH merger on the quarterly average common shares outstanding calculation compared to the impact of the issuance of common stock shares due to the BTH merger on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
(3) NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the year ended
(4) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
Consolidated Quarterly Statements of Income
Three Months Ended | |||||||||||||||||||
2022 |
2022 |
2022 |
2022 |
2021 |
|||||||||||||||
Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||
Interest and fees on loans | $ | 99,178 | $ | 79,803 | $ | 55,986 | $ | 51,183 | $ | 53,260 | |||||||||
Investment securities-taxable | 7,765 | 7,801 | 7,116 | 5,113 | 4,691 | ||||||||||||||
Investment securities-nontaxable | 2,128 | 2,151 | 1,493 | 1,400 | 1,493 | ||||||||||||||
Interest and dividend income on assets held in other financial institutions | 2,225 | 1,482 | 1,193 | 587 | 686 | ||||||||||||||
Total interest and dividend income | 111,296 | 91,237 | 65,788 | 58,283 | 60,130 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest-bearing deposits | 19,820 | 7,734 | 3,069 | 2,886 | 2,957 | ||||||||||||||
FHLB advances and other borrowings | 4,208 | 2,717 | 1,392 | 1,094 | 1,161 | ||||||||||||||
Subordinated indebtedness | 2,519 | 2,263 | 1,823 | 1,801 | 1,832 | ||||||||||||||
Total interest expense | 26,547 | 12,714 | 6,284 | 5,781 | 5,950 | ||||||||||||||
Net interest income | 84,749 | 78,523 | 59,504 | 52,502 | 54,180 | ||||||||||||||
Provision for credit losses | 4,624 | 16,942 | 3,452 | (327 | ) | (2,647 | ) | ||||||||||||
Net interest income after provision for credit losses | 80,125 | 61,581 | 56,052 | 52,829 | 56,827 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Service charges and fees | 4,663 | 4,734 | 4,274 | 3,998 | 3,994 | ||||||||||||||
Insurance commission and fee income | 5,054 | 5,666 | 5,693 | 6,456 | 2,826 | ||||||||||||||
Mortgage banking (loss) revenue | 1,201 | (929 | ) | 2,354 | 4,096 | 2,857 | |||||||||||||
Other fee income | 1,132 | 1,162 | 638 | 598 | 702 | ||||||||||||||
Gain on sales of securities, net | — | 1,664 | — | — | 75 | ||||||||||||||
Gain (loss) on sales and disposals of other assets, net | 34 | 70 | (279 | ) | — | (97 | ) | ||||||||||||
Limited partnership investment income (loss) | (230 | ) | 112 | 282 | (363 | ) | 50 | ||||||||||||
Swap fee income (loss) | 292 | 25 | 1 | 139 | (285 | ) | |||||||||||||
Other income | 1,283 | 1,219 | 1,253 | 982 | 6,579 | ||||||||||||||
Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 33,339 | 31,834 | 27,310 | 26,488 | 24,718 | ||||||||||||||
Occupancy and equipment, net | 5,863 | 5,399 | 4,514 | 4,427 | 4,306 | ||||||||||||||
Data processing | 2,868 | 2,689 | 2,413 | 2,486 | 2,302 | ||||||||||||||
Office and operations | 2,277 | 2,121 | 2,162 | 1,560 | 1,849 | ||||||||||||||
Loan related expenses | 1,676 | 1,599 | 1,517 | 1,305 | 1,880 | ||||||||||||||
Professional services | 1,145 | 1,188 | 420 | 1,060 | 923 | ||||||||||||||
Electronic banking | 1,058 | 1,087 | 896 | 917 | 616 | ||||||||||||||
Advertising and marketing | 1,505 | 1,196 | 859 | 871 | 1,147 | ||||||||||||||
Franchise tax expense | 1,017 | 957 | 838 | 770 | 692 | ||||||||||||||
Regulatory assessments | 1,242 | 877 | 802 | 626 | 526 | ||||||||||||||
Intangible asset amortization | 2,554 | 1,872 | 525 | 537 | 194 | ||||||||||||||
Communications | 434 | 279 | 252 | 281 | 286 | ||||||||||||||
Merger-related expense | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||
Other expenses | 1,097 | 1,529 | 835 | 875 | 907 | ||||||||||||||
Total noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||
Income before income tax expense | 36,300 | 19,063 | 26,118 | 25,961 | 33,182 | ||||||||||||||
Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||
Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||
Basic earnings per common share | $ | 0.96 | $ | 0.57 | $ | 0.90 | $ | 0.87 | $ | 1.21 | |||||||||
Diluted earnings per common share | 0.95 | 0.57 | 0.90 | 0.87 | 1.20 |
Consolidated Balance Sheets
(Dollars in thousands) | 2022 |
2022 |
2022 |
2022 |
2021 |
|||||||||||||
Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Cash and due from banks | $ | 150,180 | $ | 118,505 | $ | 123,499 | $ | 129,825 | $ | 133,334 | ||||||||
Interest-bearing deposits in banks | 208,792 | 181,965 | 200,421 | 454,619 | 572,284 | |||||||||||||
Total cash and cash equivalents | 358,972 | 300,470 | 323,920 | 584,444 | 705,618 | |||||||||||||
Securities: | ||||||||||||||||||
AFS | 1,641,484 | 1,672,170 | 1,804,370 | 1,905,687 | 1,504,728 | |||||||||||||
Held to maturity, net of allowance for credit losses | 11,275 | 11,285 | 4,288 | 4,831 | 22,767 | |||||||||||||
Securities carried at fair value through income | 6,368 | 6,347 | 6,630 | 7,058 | 7,497 | |||||||||||||
Total securities | 1,659,127 | 1,689,802 | 1,815,288 | 1,917,576 | 1,534,992 | |||||||||||||
Non-marketable equity securities held in other financial institutions | 67,378 | 53,899 | 76,822 | 45,242 | 45,192 | |||||||||||||
Loans held for sale | 49,957 | 59,714 | 62,493 | 80,295 | 80,387 | |||||||||||||
Loans | 7,090,022 | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | |||||||||||||
Less: ALCL | 87,161 | 83,359 | 63,123 | 62,173 | 64,586 | |||||||||||||
Loans, net of ALCL | 7,002,861 | 6,799,322 | 5,464,970 | 5,132,233 | 5,166,745 | |||||||||||||
Premises and equipment, net | 100,201 | 99,291 | 81,950 | 80,421 | 80,691 | |||||||||||||
Mortgage servicing rights | 20,824 | 21,654 | 22,127 | 21,187 | 16,220 | |||||||||||||
Cash surrender value of bank-owned life insurance | 39,040 | 38,885 | 38,742 | 38,547 | 38,352 | |||||||||||||
128,679 | 136,793 | 34,153 | 34,153 | 34,368 | ||||||||||||||
Other intangible assets, net | 49,829 | 52,384 | 15,900 | 16,425 | 16,962 | |||||||||||||
Accrued interest receivable and other assets | 209,199 | 210,425 | 175,159 | 161,772 | 141,758 | |||||||||||||
Total assets | $ | 9,686,067 | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Noninterest-bearing deposits | $ | 2,482,475 | $ | 2,667,489 | $ | 2,214,919 | $ | 2,295,682 | $ | 2,163,507 | ||||||||
Interest-bearing deposits | 4,505,940 | 4,361,423 | 3,598,417 | 3,947,714 | 3,864,058 | |||||||||||||
Time deposits | 787,287 | 748,415 | 489,822 | 523,783 | 543,128 | |||||||||||||
Total deposits | 7,775,702 | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | |||||||||||||
FHLB advances and other borrowings | 639,230 | 450,456 | 894,581 | 305,560 | 309,801 | |||||||||||||
Subordinated indebtedness | 201,765 | 201,687 | 157,540 | 157,478 | 157,417 | |||||||||||||
Accrued expenses and other liabilities | 119,427 | 126,145 | 109,872 | 205,213 | 93,163 | |||||||||||||
Total liabilities | 8,736,124 | 8,555,615 | 7,465,151 | 7,435,430 | 7,131,074 | |||||||||||||
Stockholders’ equity: | ||||||||||||||||||
Common stock | 153,733 | 153,309 | 119,038 | 118,744 | 118,733 | |||||||||||||
Additional paid-in capital | 520,669 | 518,376 | 244,368 | 242,789 | 242,114 | |||||||||||||
Retained earnings | 435,416 | 410,572 | 398,946 | 381,222 | 363,635 | |||||||||||||
Accumulated other comprehensive (loss) income | (159,875 | ) | (175,233 | ) | (115,979 | ) | (65,890 | ) | 5,729 | |||||||||
Total stockholders’ equity | 949,943 | 907,024 | 646,373 | 676,865 | 730,211 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 9,686,067 | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 |
Loan Data
At and For the Three Months Ended | |||||||||||||||||||
2022 |
2022 |
2022 |
2022 |
2021 |
|||||||||||||||
LHFI | (Dollars in thousands, unaudited) | ||||||||||||||||||
Commercial real estate | $ | 2,304,678 | $ | 2,174,347 | $ | 1,909,054 | $ | 1,801,382 | $ | 1,693,512 | |||||||||
Construction/land/land development | 945,625 | 853,311 | 635,556 | 593,350 | 530,083 | ||||||||||||||
Residential real estate | 1,477,538 | 1,399,182 | 1,005,623 | 922,054 | 909,739 | ||||||||||||||
Total real estate loans | 4,727,841 | 4,426,840 | 3,550,233 | 3,316,786 | 3,133,334 | ||||||||||||||
Commercial and industrial | 2,051,161 | 1,967,037 | 1,430,239 | 1,358,597 | 1,454,235 | ||||||||||||||
Mortgage warehouse lines of credit | 284,867 | 460,573 | 531,888 | 503,249 | 627,078 | ||||||||||||||
Consumer | 26,153 | 28,231 | 15,733 | 15,774 | 16,684 | ||||||||||||||
Total LHFI | 7,090,022 | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | ||||||||||||||
Less: allowance for loan credit losses ("ALCL") | 87,161 | 83,359 | 63,123 | 62,173 | 64,586 | ||||||||||||||
LHFI, net | $ | 7,002,861 | $ | 6,799,322 | $ | 5,464,970 | $ | 5,132,233 | $ | 5,166,745 | |||||||||
Nonperforming assets | |||||||||||||||||||
Nonperforming LHFI | |||||||||||||||||||
Commercial real estate | $ | 526 | $ | 431 | $ | 224 | $ | 233 | $ | 512 | |||||||||
Construction/land/land development | 270 | 366 | 373 | 256 | 338 | ||||||||||||||
Residential real estate | 7,712 | 7,641 | 7,478 | 11,609 | 11,647 | ||||||||||||||
Commercial and industrial | 1,383 | 5,134 | 5,930 | 8,987 | 12,306 | ||||||||||||||
Mortgage warehouse lines of credit | — | 385 | — | — | — | ||||||||||||||
Consumer | 49 | 74 | 80 | 96 | 100 | ||||||||||||||
Total nonperforming LHFI | 9,940 | 14,031 | 14,085 | 21,181 | 24,903 | ||||||||||||||
Nonperforming loans held for sale | 3,933 | 2,698 | 2,461 | 2,698 | 1,754 | ||||||||||||||
Total nonperforming loans | 13,873 | 16,729 | 16,546 | 23,879 | 26,657 | ||||||||||||||
Repossessed assets | 806 | 1,781 | 2,009 | 1,703 | 1,860 | ||||||||||||||
Total nonperforming assets | $ | 14,679 | $ | 18,510 | $ | 18,555 | $ | 25,582 | $ | 28,517 | |||||||||
Classified assets | $ | 75,009 | $ | 71,562 | $ | 54,124 | $ | 72,082 | $ | 71,232 | |||||||||
Past due LHFI(1) | 10,932 | 10,866 | 7,186 | 21,753 | 25,615 | ||||||||||||||
Allowance for loan credit losses | |||||||||||||||||||
Balance at beginning of period | $ | 83,359 | $ | 63,123 | $ | 62,173 | $ | 64,586 | $ | 69,947 | |||||||||
Provision for loan credit losses | 3,982 | 15,787 | 2,503 | (659 | ) | (2,668 | ) | ||||||||||||
ALCL - BTH merger | — | 5,527 | — | — | — | ||||||||||||||
Loans charged off | 2,537 | 1,628 | 2,192 | 2,402 | 3,162 | ||||||||||||||
Loan recoveries | 2,357 | 550 | 639 | 648 | 469 | ||||||||||||||
Net charge-offs | 180 | 1,078 | 1,553 | 1,754 | 2,693 | ||||||||||||||
Balance at end of period | $ | 87,161 | $ | 83,359 | $ | 63,123 | $ | 62,173 | $ | 64,586 | |||||||||
Credit quality ratios | |||||||||||||||||||
Total nonperforming assets to total assets | 0.15 | % | 0.20 | % | 0.23 | % | 0.32 | % | 0.36 | % | |||||||||
Total nonperforming loans to total loans | 0.19 | 0.24 | 0.30 | 0.45 | 0.50 | ||||||||||||||
Nonperforming LHFI to LHFI | 0.14 | 0.20 | 0.25 | 0.41 | 0.48 | ||||||||||||||
Past due LHFI to LHFI | 0.15 | 0.16 | 0.13 | 0.42 | 0.49 | ||||||||||||||
ALCL to nonperforming LHFI | 876.87 | 594.11 | 448.16 | 293.53 | 259.35 | ||||||||||||||
ALCL to total LHFI | 1.23 | 1.21 | 1.14 | 1.20 | 1.23 | ||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.28 | 1.29 | 1.25 | 1.33 | 1.43 | ||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.01 | 0.07 | 0.12 | 0.14 | 0.21 |
____________________________
(1) Past due LHFI are defined as loans 30 days or more past due.
(2) The ALCL to total LHFI, adjusted is calculated at
Average Balances and Yields/Rates
Three Months Ended | |||||||||||||||||
Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||
Assets | (Dollars in thousands, unaudited) | ||||||||||||||||
Commercial real estate | $ | 2,205,219 | 5.07 | % | $ | 2,046,411 | 4.64 | % | $ | 1,612,078 | 4.10 | % | |||||
Construction/land/land development | 916,697 | 6.01 | 760,682 | 5.20 | 528,172 | 4.21 | |||||||||||
Residential real estate | 1,442,281 | 4.57 | 1,249,746 | 4.36 | 909,778 | 3.88 | |||||||||||
Commercial and industrial ("C&I") | 2,053,473 | 6.74 | 1,816,912 | 5.64 | 1,438,726 | 4.37 | |||||||||||
Mortgage warehouse lines of credit | 322,658 | 5.75 | 491,584 | 4.53 | 577,835 | 3.70 | |||||||||||
Consumer | 26,924 | 8.18 | 24,137 | 6.80 | 16,572 | 5.74 | |||||||||||
LHFI | 6,967,252 | 5.63 | 6,389,472 | 4.94 | 5,083,161 | 4.11 | |||||||||||
Loans held for sale | 28,842 | 5.39 | 29,927 | 4.12 | 47,352 | 5.20 | |||||||||||
Loans receivable | 6,996,094 | 5.62 | 6,419,399 | 4.93 | 5,130,513 | 4.12 | |||||||||||
Investment securities-taxable | 1,421,839 | 2.17 | 1,547,848 | 2.00 | 1,239,648 | 1.50 | |||||||||||
Investment securities-nontaxable | 253,073 | 3.34 | 317,175 | 2.69 | 265,261 | 2.23 | |||||||||||
Non-marketable equity securities held in other financial institutions | 63,321 | 3.68 | 73,819 | 2.10 | 45,153 | 4.16 | |||||||||||
Interest-bearing balances due from banks | 175,138 | 3.71 | 206,781 | 2.09 | 442,060 | 0.19 | |||||||||||
Total interest-earning assets | 8,909,465 | 4.96 | 8,565,022 | 4.23 | 7,122,635 | 3.35 | |||||||||||
Noninterest-earning assets(1) | 621,078 | 637,399 | 436,935 | ||||||||||||||
Total assets | $ | 9,530,543 | $ | 9,202,421 | $ | 7,559,570 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||
Savings and interest-bearing transaction accounts | $ | 4,362,915 | 1.59 | % | $ | 4,157,092 | 0.66 | % | $ | 3,616,101 | 0.23 | % | |||||
Time deposits | 753,526 | 1.22 | 669,900 | 0.51 | 561,990 | 0.59 | |||||||||||
Total interest-bearing deposits | 5,116,441 | 1.54 | 4,826,992 | 0.64 | 4,178,091 | 0.28 | |||||||||||
FHLB advances and other borrowings | 552,903 | 3.02 | 538,020 | 2.00 | 267,737 | 1.72 | |||||||||||
Subordinated indebtedness | 201,731 | 4.95 | 186,803 | 4.81 | 157,395 | 4.62 | |||||||||||
Total interest-bearing liabilities | 5,871,075 | 1.79 | 5,551,815 | 0.91 | 4,603,223 | 0.51 | |||||||||||
Noninterest-bearing liabilities | |||||||||||||||||
Noninterest-bearing deposits | 2,593,321 | 2,582,500 | 2,110,816 | ||||||||||||||
Other liabilities(1) | 152,297 | 129,354 | 129,917 | ||||||||||||||
Total liabilities | 8,616,693 | 8,263,669 | 6,843,956 | ||||||||||||||
Stockholders’ Equity | 913,850 | 938,752 | 715,614 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,530,543 | $ | 9,202,421 | $ | 7,559,570 | |||||||||||
Net interest spread | 3.17 | % | 3.32 | % | 2.84 | % | |||||||||||
NIM | 3.77 | 3.64 | 3.02 | ||||||||||||||
NIM - (FTE)(2) | 3.81 | 3.68 | 3.06 | ||||||||||||||
NIM - FTE, adjusted(3) | 3.73 | 3.61 | 2.92 |
____________________________
(1) Includes
(2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
(3) NIM - FTE, adjusted, is calculated for the quarters ended
Non-GAAP Financial Measures
At and For the Three Months Ended | |||||||||||||||||||
2022 |
2022 |
2022 |
2022 |
2021 |
|||||||||||||||
(Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||
Calculation of adjusted net income: | |||||||||||||||||||
Net interest income after provision for credit losses | $ | 80,125 | $ | 61,581 | $ | 56,052 | $ | 52,829 | $ | 56,827 | |||||||||
Add: CECL provision for non-PCD loans | — | 14,890 | — | — | — | ||||||||||||||
Adjusted net interest income after provision for credit losses | 80,125 | 76,471 | 56,052 | 52,829 | 56,827 | ||||||||||||||
Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||
Less: GNMA MSR impairment | — | (1,950 | ) | — | — | — | |||||||||||||
Less: gain on sales of securities, net | — | 1,664 | — | — | 75 | ||||||||||||||
Less: gain on fair value of the |
— | — | — | — | 5,213 | ||||||||||||||
Adjusted total noninterest income | 13,429 | 14,009 | 14,216 | 15,906 | 11,413 | ||||||||||||||
Total noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||
Less: merger-related expenses | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||
Adjusted total noninterest expense | 56,075 | 52,627 | 43,343 | 42,203 | 40,346 | ||||||||||||||
Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||
Add: income tax expense on adjustment items | 248 | 3,946 | 169 | 120 | (1,110 | ) | |||||||||||||
Adjusted income tax expense | 7,070 | 6,766 | 4,976 | 5,398 | 3,750 | ||||||||||||||
Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||
Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||
Calculation of adjusted PTPP earnings: | |||||||||||||||||||
Provision for credit losses | $ | 4,624 | $ | 16,942 | $ | 3,452 | $ | (327 | ) | $ | (2,647 | ) | |||||||
Less: CECL provision for non-PCD loans | — | 14,890 | — | — | — | ||||||||||||||
Adjusted provision for credit losses | $ | 4,624 | $ | 2,052 | $ | 3,452 | $ | (327 | ) | $ | (2,647 | ) | |||||||
Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | |||||||||
Plus: adjusted provision for credit losses | 4,624 | 2,052 | 3,452 | (327 | ) | (2,647 | ) | ||||||||||||
Plus: adjusted income tax expense | 7,070 | 6,766 | 4,976 | 5,398 | 3,750 | ||||||||||||||
Adjusted PTPP Earnings | $ | 42,103 | $ | 39,905 | $ | 30,377 | $ | 26,205 | $ | 25,258 | |||||||||
Calculation of adjusted dilutive EPS: | |||||||||||||||||||
Numerator: | |||||||||||||||||||
Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||
Denominator: | |||||||||||||||||||
Weighted average diluted common shares outstanding | 30,867,511 | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | ||||||||||||||
Diluted earnings per share | $ | 0.95 | $ | 0.57 | $ | 0.90 | $ | 0.87 | $ | 1.20 | |||||||||
Adjusted diluted earnings per share | 0.99 | 1.09 | 0.92 | 0.89 | 1.02 | ||||||||||||||
Calculation of adjusted ROAA and adjusted ROAE: | |||||||||||||||||||
Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||
Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized adjusted net income | 120,644 | 123,334 | 88,037 | 85,710 | 95,789 | ||||||||||||||
Divided by total average assets | 9,530,543 | 9,202,421 | 7,944,720 | 8,045,246 | 7,559,570 | ||||||||||||||
ROAA (annualized) | 1.23 | % | 0.70 | % | 1.08 | % | 1.04 | % | 1.49 | % | |||||||||
Adjusted ROAA (annualized) | 1.27 | 1.34 | 1.11 | 1.07 | 1.27 | ||||||||||||||
Divided by total average stockholders' equity | $ | 913,850 | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | |||||||||
ROAE (annualized) | 12.80 | % | 6.86 | % | 12.81 | % | 11.61 | % | 15.70 | % | |||||||||
Adjusted ROAE (annualized) | 13.20 | 13.14 | 13.19 | 11.86 | 13.39 | ||||||||||||||
Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||||||||||||||
Adjusted PTPP earnings | $ | 42,103 | $ | 39,905 | $ | 30,377 | $ | 26,205 | $ | 25,258 | |||||||||
Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||
Multiplied by the number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Adjusted PTPP earnings, annualized | 167,039 | 158,319 | 121,842 | 106,276 | 100,208 | ||||||||||||||
Divided by total average assets | 9,530,543 | 9,202,421 | 7,944,720 | 8,045,246 | 7,559,570 | ||||||||||||||
Adjusted PTPP ROAA(annualized) | 1.75 | % | 1.72 | % | 1.53 | % | 1.32 | % | 1.33 | % | |||||||||
Divided by total average stockholders' equity | $ | 913,850 | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | |||||||||
Adjusted PTPP ROAE (annualized) | 18.28 | % | 16.86 | % | 18.26 | % | 14.71 | % | 14.00 | % | |||||||||
Calculation of tangible book value per common share and adjusted tangible book value per common share: | |||||||||||||||||||
Total common stockholders’ equity | $ | 949,943 | $ | 907,024 | $ | 646,373 | $ | 676,865 | $ | 730,211 | |||||||||
Less: goodwill | 128,679 | 136,793 | 34,153 | 34,153 | 34,368 | ||||||||||||||
Less: other intangible assets, net | 49,829 | 52,384 | 15,900 | 16,425 | 16,962 | ||||||||||||||
Tangible common equity | 771,435 | 717,847 | 596,320 | 626,287 | 678,881 | ||||||||||||||
Less: accumulated other comprehensive (loss) income | (159,875 | ) | (175,233 | ) | (115,979 | ) | (65,890 | ) | 5,729 | ||||||||||
Adjusted tangible common equity | 931,310 | 893,080 | 712,299 | 692,177 | 673,152 | ||||||||||||||
Divided by common shares outstanding at the end of the period | 30,746,600 | 30,661,734 | 23,807,677 | 23,748,748 | 23,746,502 | ||||||||||||||
Book value per common share | $ | 30.90 | $ | 29.58 | $ | 27.15 | $ | 28.50 | $ | 30.75 | |||||||||
Tangible book value per common share | 25.09 | 23.41 | 25.05 | 26.37 | 28.59 | ||||||||||||||
Adjusted tangible book value per common share | 30.29 | 29.13 | 29.92 | 29.15 | 28.35 | ||||||||||||||
Calculation of ROATCE and adjusted ROATCE: | |||||||||||||||||||
Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||
Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized net income | $ | 116,951 | $ | 64,442 | $ | 85,478 | $ | 83,881 | $ | 112,364 | |||||||||
Adjusted net income | 30,409 | 31,087 | 21,949 | 21,134 | 24,155 | ||||||||||||||
Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized adjusted net income | $ | 120,644 | $ | 123,334 | $ | 88,037 | $ | 85,710 | $ | 95,832 | |||||||||
Total average common stockholders’ equity | 913,850 | 938,752 | 667,323 | 722,504 | 715,614 | ||||||||||||||
Less: average goodwill | 131,302 | 95,696 | 34,153 | 34,366 | 26,824 | ||||||||||||||
Less: average other intangible assets, net | 51,495 | 40,918 | 16,242 | 16,775 | 3,172 | ||||||||||||||
Average tangible common equity | 731,053 | 802,138 | 616,928 | 671,363 | 685,618 | ||||||||||||||
ROATCE | 16.00 | % | 8.03 | % | 13.86 | % | 12.49 | % | 16.39 | % | |||||||||
Adjusted ROATCE | 16.50 | 15.38 | 14.27 | 12.77 | 13.98 | ||||||||||||||
Calculation of core efficiency ratio: | |||||||||||||||||||
Total noninterest expense | $ | 57,254 | $ | 56,241 | $ | 44,150 | $ | 42,774 | $ | 40,346 | |||||||||
Less: insurance and mortgage noninterest expense | 8,031 | 8,479 | 8,397 | 8,626 | 6,580 | ||||||||||||||
Less: merger-related expenses | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||
Adjusted total noninterest expense | 48,044 | 44,148 | 34,946 | 33,577 | 33,766 | ||||||||||||||
Net interest income | 84,749 | 78,523 | 59,504 | 52,502 | 54,180 | ||||||||||||||
Less: insurance and mortgage net interest income | 1,376 | 1,208 | 1,082 | 875 | 946 | ||||||||||||||
Add: Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||
Less: insurance and mortgage noninterest income | 6,255 | 4,737 | 8,047 | 10,552 | 5,683 | ||||||||||||||
Less: gain on fair value of the |
— | — | — | — | 5,213 | ||||||||||||||
Less: gain on sale of securities, net | — | 1,664 | — | — | 75 | ||||||||||||||
Adjusted total revenue | 90,547 | 84,637 | 64,591 | 56,981 | 58,964 | ||||||||||||||
Efficiency ratio | 58.32 | % | 60.97 | % | 59.89 | % | 62.53 | % | 56.92 | % | |||||||||
Core efficiency ratio | 53.06 | 52.16 | 54.10 | 58.93 | 57.27 |
Non-GAAP Financial Measures
Year Ended |
|||||||
2022 | 2021 | ||||||
(Dollars in thousands, except per share amounts, unaudited) | |||||||
Calculation of adjusted net income: | |||||||
Net interest income after provision for credit losses | $ | 250,587 | $ | 227,017 | |||
Add: CECL provision for non-PCD loans | 14,890 | — | |||||
Adjusted net interest income after provision for credit losses | 265,477 | 227,017 | |||||
Total noninterest income | 57,274 | 62,193 | |||||
Less: GNMA MSR impairment | (1,950 | ) | — | ||||
Less: gain on sales of securities, net | 1,664 | 1,748 | |||||
Less: Gain on fair value of the |
— | 5,213 | |||||
Adjusted total noninterest income | 57,560 | 55,232 | |||||
Total noninterest expense | 200,419 | 156,779 | |||||
Less: merger-related expense | 6,171 | — | |||||
Adjusted total noninterest expense | 194,248 | 156,779 | |||||
Income tax expense | 19,727 | 23,885 | |||||
Add: income tax expense on adjustment items | 4,483 | (1,462 | ) | ||||
Adjusted income tax expense | 24,210 | 22,423 | |||||
Net Income | $ | 87,715 | $ | 108,546 | |||
Adjusted net income | $ | 104,579 | $ | 103,047 | |||
Calculation of adjusted PTPP earnings: | |||||||
Provision for credit losses | $ | 24,691 | $ | (10,765 | ) | ||
Less: CECL provision for non-PCD loans | 14,890 | — | |||||
Adjusted provision for credit losses | $ | 9,801 | $ | (10,765 | ) | ||
Adjusted net income | $ | 104,579 | $ | 103,047 | |||
Plus: adjusted provision for credit losses | 9,801 | (10,765 | ) | ||||
Plus: adjusted income tax expense | 24,210 | 22,423 | |||||
Adjusted PTPP earnings | $ | 138,590 | $ | 114,705 | |||
Calculation of adjusted dilutive EPS: | |||||||
Numerator: | |||||||
Adjusted net income | $ | 104,579 | $ | 103,047 | |||
Denominator: | |||||||
Weighted average diluted common shares outstanding | 26,760,592 | 23,608,586 | |||||
Diluted earnings per share | $ | 3.28 | $ | 4.60 | |||
Adjusted diluted earnings per share | 3.91 | 4.36 | |||||
Calculation of adjusted ROAA and adjusted ROAE: | |||||||
Adjusted net income | $ | 104,579 | $ | 103,047 | |||
Divided by total average assets | 8,686,231 | 7,470,927 | |||||
ROAA | 1.01 | % | 1.45 | % | |||
Adjusted ROAA | 1.20 | 1.38 | |||||
Divided by total average stockholders' equity | $ | 811,483 | $ | 687,648 | |||
ROAE | 10.81 | % | 15.79 | % | |||
Adjusted ROAE | 12.89 | 14.99 | |||||
Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||
Adjusted PTPP Earnings | $ | 138,590 | $ | 114,705 | |||
Divided by total average assets | 8,686,231 | 7,470,927 | |||||
Adjusted PTPP ROAA | 1.60 | % | 1.54 | % | |||
Divided by total average stockholders' equity | $ | 811,483 | $ | 687,648 | |||
Adjusted PTPP ROAE | 17.08 | % | 16.68 | % | |||
Calculation of tangible book value per common share and adjusted tangible book value per common share: | |||||||
Total common stockholders' equity | $ | 949,943 | $ | 730,211 | |||
Less: goodwill | 128,679 | 34,368 | |||||
Less: other intangible assets, net | 49,829 | 16,962 | |||||
Tangible Common Equity | 771,435 | 678,881 | |||||
Less: accumulated other comprehensive income (loss) | (159,875 | ) | 5,729 | ||||
Adjusted Tangible Common Equity | 931,310 | 673,152 | |||||
Divided by common shares outstanding at the end of the period | 30,746,600 | 23,746,502 | |||||
Book value per common share | $ | 30.90 | $ | 30.75 | |||
Tangible book value per common share | 25.09 | 28.59 | |||||
Adjusted tangible book value per common share | 30.29 | 28.35 | |||||
Calculation of ROATCE and adjusted ROATCE: | |||||||
Net income | $ | 87,715 | $ | 108,546 | |||
Adjusted net income | 104,579 | 103,047 | |||||
Total average common stockholders’ equity | 811,483 | 687,648 | |||||
Less: average goodwill | 74,205 | 26,762 | |||||
Less: average other intangible assets, net | 31,479 | 3,363 | |||||
Average tangible common equity | 705,799 | 657,523 | |||||
ROATCE | 12.43 | % | 16.51 | % | |||
Adjusted ROATCE | 14.82 | 15.67 | |||||
Calculation of core efficiency ratio: | |||||||
Total noninterest expense | $ | 200,419 | $ | 156,779 | |||
Less: insurance and mortgage noninterest expense | 33,533 | 27,484 | |||||
Less: merger-related expenses | 6,171 | — | |||||
Less: FHLB early termination fee | — | 1,613 | |||||
Adjusted total expense | 160,715 | 127,682 | |||||
Net interest income | 275,278 | 216,252 | |||||
Less: insurance and mortgage net interest income | 4,541 | 3,975 | |||||
Add: Total noninterest income | 57,274 | 62,193 | |||||
Less: insurance and mortgage noninterest income | 29,591 | 26,025 | |||||
Less: gain on fair value of the |
— | 5,213 | |||||
Less: gain on sale of securities, net | 1,664 | 1,748 | |||||
Adjusted total revenue | 296,756 | 241,484 | |||||
Efficiency ratio | 60.27 | % | 56.31 | % | |||
Core efficiency ratio | 54.16 | 52.87 |
![](https://ml.globenewswire.com/media/NjRiNDQwOTQtMjU0OC00ZWFiLTkzNjctMzM2OTE5Y2QxMTZhLTExMTA5MDg=/tiny/Origin-Bancorp-Inc-.png)
Source: Origin Bancorp, Inc.