Origin Bancorp, Inc. Reports Earnings for Third Quarter 2023
“Origin reported strong earnings this quarter as our team remained focused on executing on our strategic plan and delivering for our customers and communities,” said
(1) Adjusted PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.
Financial Highlights
- Net income was
$24.3 million for the quarter endedSeptember 30, 2023 , reflecting an increase of$2.6 million , or 11.7%, compared to the linked quarter. The adjusted net income(1) was$22.0 million for the quarter endedSeptember 30, 2023 , reflecting an increase of$616,000 , or 2.9%, compared to the linked quarter. - Diluted earnings per share (“EPS”) was
$0.79 for the quarter endedSeptember 30, 2023 , reflecting an increase of$0.09 , or 12.9%, compared to$0.70 for the linked quarter. The adjusted diluted earnings per share(1) was$0.71 for the quarter endedSeptember 30, 2023 , reflecting an increase of$0.02 , or 2.9%, compared to$0.69 for the linked quarter. - During
September 2023 , we sold$181 .9 million of available-for-sale investment securities at a loss of$7 .2 million, and used the proceeds to pay downFederal Home Loan Bank (“FHLB”) advances, which negatively impact our basic and diluted EPS by$0.18 for the quarter endedSeptember 30, 2023 . - During
September 2023 , we recorded a$10.1 million positive valuation adjustment on one of our non-marketable equity securities, which positively impact our basic and diluted EPS by$0.26 for the quarter endedSeptember 30, 2023 . - Loans held for investment (“LHFI”), excluding mortgage warehouse lines of credit, to deposits were 87.0% at
September 30, 2023 , compared to 83.5% atJune 30, 2023 . Cash and liquid securities as a percentage of total assets was 11.6% atSeptember 30, 2023 , compared to 11.1% atJune 30, 2023 . - Book value per common share was
$32.32 atSeptember 30, 2023 , reflecting a decrease of$0.01 , compared to the linked quarter. Tangible book value per common share(1) was$26.78 atSeptember 30, 2023 , reflecting an increase of$0.07 , or 0.3%, compared to the linked quarter. - At
September 30, 2023 , andJune 30, 2023 , Company level common equity Tier 1 capital to risk-weighted assets was 11.45%, and 11.01%, respectively, the Tier 1 leverage ratio was 10.00% and 9.65%, respectively, and the total capital ratio was 14.60% and 14.11%, respectively. Tangible common equity to tangible assets(1) was 8.66% atSeptember 30, 2023 , compared to 8.25% atJune 30, 2023 .
(1) Adjusted net income, adjusted diluted earnings per share, tangible book value per common share and tangible common equity to tangible assets 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.
Results of Operations for the Three Months Ended
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended
The net purchase accounting amortization totaled
The
The average rate on interest-bearing deposits increased to 3.47% for the quarter ended
The yield on LHFI was 6.35% and 6.18% for the quarter ended
The fully tax-equivalent net interest margin (“NIM”) was impacted by margin compression as rates on interest-bearing liabilities rose faster than yields on interest-earning assets during the last four quarters. The fully tax-equivalent NIM was 3.14% for the quarter ended
During the last few days of 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) | 2023 |
2023 |
2022 |
Linked Quarter |
Linked Quarter |
|||||||||||||
Past due LHFI | $ | 20,347 | $ | 19,836 | $ | 10,866 | $ | 511 | 2.6 | % | ||||||||
Allowance for Loan Credit Losses (“ALCL”) | 95,177 | 94,353 | 83,359 | 824 | 0.9 | |||||||||||||
Classified loans | 64,021 | 84,298 | 69,781 | (20,277 | ) | (24.1 | ) | |||||||||||
Total nonperforming LHFI | 31,608 | 33,609 | 14,031 | (2,001 | ) | (6.0 | ) | |||||||||||
Provision for credit losses | 3,515 | 4,306 | 16,942 | (791 | ) | (18.4 | ) | |||||||||||
Net charge-offs | 2,686 | 1,919 | 1,078 | 767 | 40.0 | |||||||||||||
Credit quality ratios(1): | ||||||||||||||||||
ALCL to nonperforming LHFI | 301.12 | % | 280.74 | % | 594.11 | % | 2038 bp | N/A | ||||||||||
ALCL to total LHFI | 1.26 | 1.24 | 1.21 | 2 bp | N/A | |||||||||||||
ALCL to total LHFI, adjusted(2) | 1.30 | 1.32 | 1.29 | -2 bp | N/A | |||||||||||||
Nonperforming LHFI to LHFI | 0.42 | 0.44 | 0.20 | -2 bp | N/A | |||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.14 | 0.10 | 0.07 | 4 bp | N/A |
___________________________ |
|
(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 by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL. |
We recorded a credit loss provision of
The ALCL to nonperforming LHFI increased to 301.1% at
Classified loans decreased
Noninterest Income
Noninterest income for the quarter ended
The increase in other noninterest income was primarily due to a
The loss on sales of securities was due to the sale of available for sale investment securities with a current book value of
The decrease in limited partnership investment income was mainly due to a
Noninterest Expense
Noninterest expense for the quarter ended
Income Taxes
The effective tax rate was 19.1% during the quarter ended
Financial Condition
Loans
- Total LHFI at
September 30, 2023 , were$7.57 billion , a decrease of$54.6 million , or 0.7%, from$7.62 billion atJune 30, 2023 , and an increase of$685.4 million , or 10.0%, compared toSeptember 30, 2022 . - Mortgage warehouse lines of credit totaled
$286.3 million atSeptember 30, 2023 , a decrease of$251.3 million , or 46.7%, compared to the linked quarter. - Total real estate loans were
$5.20 billion atSeptember 30, 2023 , an increase of$116.8 million , or 2.3%, from the linked quarter, with construction/land/land development and residential real estate loan growth each contributing$54 .5 million of the total real estate loan growth, respectively. - Total commercial and industrial loans were
$2 .06 billion atSeptember 30, 2023 , an increase of$81 .0 million, or 4.1%, compared to the linked quarter.
Securities
- Total securities at
September 30, 2023 , were$1.31 billion , a decrease of$244 .6 million, or 15.8%, compared to the linked quarter and a decrease of$381.4 million , or 22.6%, compared toSeptember 30, 2022 . - The decrease was primarily due to sales, maturities and calls, as well as normal principal payments. During the last few days of the quarter ended
September 30, 2023 , we made a strategic decision to sell available for sale investment securities with a book value of$181 .9 million and realized a loss of$7 .2 million, the proceeds of which were used to pay down FHLB advances. - Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was
$172.7 million atSeptember 30, 2023 , an increase of$19 .9 million, or 13.0%, from the linked quarter. - The weighted average effective duration for the total securities portfolio was 4.49 years as of
September 30, 2023 , compared to 4.13 years as ofJune 30, 2023 .
Deposits
- Total deposits at
September 30, 2023 , were$8.37 billion , a decrease of$115 .6 million, or 1.4%, compared to the linked quarter, and represented an increase of$597.2 million , or 7.7%, fromSeptember 30, 2022 . - The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of
$115 .0 million in noninterest-bearing deposits. Noninterest-bearing deposits continued to be impacted by the higher interest rate environment, as we saw a continuation of the declining trend in noninterest-bearing deposit balances that began in the fourth quarter of 2022. - At
September 30, 2023 , noninterest-bearing deposits as a percentage of total deposits were 24.0%, compared to 25.0% and 34.3% atJune 30, 2023 , andSeptember 30, 2022 , respectively. - Uninsured/uncollateralized deposits totaled
$2.75 billion atSeptember 30, 2023 , compared to$2.84 billion atJune 30, 2023 , representing 32.8% and 33.4% of total deposits atSeptember 30, 2023 , andJune 30, 2023 , respectively.
Borrowings
- FHLB advances and other borrowings at
September 30, 2023 , were$12 .2 million, a decrease of$330 .6 million, or 96.4%, compared to the linked quarter and represented a decrease of$438 .2 million, or 97.3%, fromSeptember 30, 2022 . - During the last few days of the quarter ended
September 30, 2023 , we made a strategic decision to sell available for sale investment securities to pay down FHLB advances.
Stockholders’ Equity
- Stockholders’ equity was
$998.9 million atSeptember 30, 2023 , an increase of$1.1 million , or 0.1%, compared to$997.9 million atJune 30, 2023 , and an increase of$91.9 million , or 10.1%, compared to$907.0 million , atSeptember 30, 2022 . - The increase in stockholders’ equity from the linked quarter is primarily due to net income of
$24.3 million , partially offset by an increase in accumulated other comprehensive loss, net of tax, of$19 .9 million and dividends declared of$4 .7 million during the current quarter.
Conference Call
Origin will hold a conference call to discuss its third quarter 2023 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 generally accepted accounting principles in
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 strategies, 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 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. 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 (Unaudited) |
|||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
|||||||||||||||
Income statement and share amounts | (Dollars in thousands, except per share amounts) | ||||||||||||||||||
Net interest income | $ | 74,130 | $ | 75,291 | $ | 77,147 | $ | 84,749 | $ | 78,523 | |||||||||
Provision for credit losses | 3,515 | 4,306 | 6,197 | 4,624 | 16,942 | ||||||||||||||
Noninterest income | 18,119 | 15,636 | 16,384 | 13,429 | 13,723 | ||||||||||||||
Noninterest expense | 58,663 | 58,887 | 56,760 | 57,254 | 56,241 | ||||||||||||||
Income before income tax expense | 30,071 | 27,734 | 30,574 | 36,300 | 19,063 | ||||||||||||||
Income tax expense | 5,758 | 5,974 | 6,272 | 6,822 | 2,820 | ||||||||||||||
Net income | $ | 24,313 | $ | 21,760 | $ | 24,302 | $ | 29,478 | $ | 16,243 | |||||||||
Adjusted net income(1) | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Adjusted PTPP earnings(1) | 30,663 | 31,569 | 36,627 | 42,103 | 39,905 | ||||||||||||||
Basic earnings per common share | 0.79 | 0.71 | 0.79 | 0.96 | 0.57 | ||||||||||||||
Diluted earnings per common share | 0.79 | 0.70 | 0.79 | 0.95 | 0.57 | ||||||||||||||
Adjusted diluted earnings per common share(1) | 0.71 | 0.69 | 0.78 | 0.99 | 1.09 | ||||||||||||||
Dividends declared per common share | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | ||||||||||||||
Weighted average common shares outstanding - basic | 30,856,649 | 30,791,397 | 30,742,902 | 30,674,389 | 28,298,984 | ||||||||||||||
Weighted average common shares outstanding - diluted | 30,943,860 | 30,872,834 | 30,882,156 | 30,867,511 | 28,481,619 | ||||||||||||||
Balance sheet data | |||||||||||||||||||
Total LHFI | $ | 7,568,063 | $ | 7,622,689 | $ | 7,375,823 | $ | 7,090,022 | $ | 6,882,681 | |||||||||
Total assets | 9,733,303 | 10,165,163 | 10,358,516 | 9,686,067 | 9,462,639 | ||||||||||||||
Total deposits | 8,374,488 | 8,490,043 | 8,174,310 | 7,775,702 | 7,777,327 | ||||||||||||||
Total stockholders’ equity | 998,945 | 997,859 | 992,587 | 949,943 | 907,024 | ||||||||||||||
Performance metrics and capital ratios | |||||||||||||||||||
Yield on LHFI | 6.35 | % | 6.18 | % | 6.03 | % | 5.63 | % | 4.94 | % | |||||||||
Yield on interest-earnings assets | 5.69 | 5.50 | 5.31 | 4.96 | 4.23 | ||||||||||||||
Cost of interest-bearing deposits | 3.47 | 3.05 | 2.49 | 1.54 | 0.64 | ||||||||||||||
Cost of total deposits | 2.61 | 2.26 | 1.75 | 1.02 | 0.41 | ||||||||||||||
NIM - fully tax equivalent ("FTE") | 3.14 | 3.16 | 3.44 | 3.81 | 3.68 | ||||||||||||||
NIM - FTE, adjusted(2) | 3.14 | 3.14 | 3.36 | 3.73 | 3.61 | ||||||||||||||
Return on average assets (annualized) ("ROAA") | 0.96 | 0.86 | 1.01 | 1.23 | 0.70 | ||||||||||||||
Adjusted ROAA (annualized)(1) | 0.87 | 0.84 | 1.00 | 1.27 | 1.34 | ||||||||||||||
Adjusted PTPP ROAA (annualized)(1) | 1.21 | 1.24 | 1.52 | 1.75 | 1.72 | ||||||||||||||
Return on average stockholders’ equity (annualized) ("ROAE") | 9.52 | 8.76 | 10.10 | 12.80 | 6.86 | ||||||||||||||
Adjusted ROAE (annualized)(1) | 8.62 | 8.61 | 10.05 | 13.20 | 13.14 | ||||||||||||||
Adjusted PTPP ROAE (annualized)(1) | 12.01 | 12.70 | 15.22 | 18.28 | 16.86 | ||||||||||||||
Book value per common share(3) | $ | 32.32 | $ | 32.33 | $ | 32.25 | $ | 30.90 | $ | 29.58 | |||||||||
Tangible book value per common share (1)(3) | 26.78 | 26.71 | 26.53 | 25.09 | 23.41 | ||||||||||||||
Adjusted tangible book value per common share(1) | 32.37 | 31.66 | 31.03 | 30.29 | 29.13 | ||||||||||||||
Return on average tangible common equity (annualized) ("ROATCE")(1) | 11.48 | % | 10.62 | % | 12.34 | % | 16.00 | % | 8.03 | % | |||||||||
Adjusted return on average tangible common equity (annualized) ("adjusted ROATCE")(1) | 10.39 | 10.44 | 12.29 | 16.50 | 15.38 | ||||||||||||||
Efficiency ratio(4) | 63.59 | 64.76 | 60.69 | 58.32 | 60.97 | ||||||||||||||
Adjusted efficiency ratio(1) | 62.71 | 61.17 | 58.64 | 53.06 | 52.16 | ||||||||||||||
Common equity tier 1 to risk-weighted assets(5) | 11.45 | % | 11.01 | % | 11.08 | % | 10.93 | % | 10.51 | % | |||||||||
Tier 1 capital to risk-weighted assets(5) | 11.63 | 11.19 | 11.27 | 11.12 | 10.70 | ||||||||||||||
Total capital to risk-weighted assets(5) | 14.60 | 14.11 | 14.30 | 14.23 | 13.79 | ||||||||||||||
Tier 1 leverage ratio(5) | 10.00 | 9.65 | 9.79 | 9.66 | 9.63 |
__________________________ |
|
(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 adjusted 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 by removing the net purchase accounting accretion from the net interest income. |
(3) | An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve and its impact on our investment portfolio. |
(4) | Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income. |
(5) |
Selected Year-to-Date Financial Data (Unaudited) |
|||||||
Nine Months Ended |
|||||||
(Dollars in thousands, except per share amounts) | 2023 | 2022 | |||||
Income statement and share amounts | |||||||
Net interest income | $ | 226,568 | $ | 190,529 | |||
Provision for credit losses | 14,018 | 20,067 | |||||
Noninterest income | 50,139 | 43,845 | |||||
Noninterest expense | 174,310 | 143,165 | |||||
Income before income tax expense | 88,379 | 71,142 | |||||
Income tax expense | 18,004 | 12,905 | |||||
Net income | $ | 70,375 | $ | 58,237 | |||
Adjusted net income(1) | $ | 67,580 | $ | 74,170 | |||
Adjusted PTPP earnings(1) | 98,859 | 96,487 | |||||
Basic earnings per common share | 2.29 | 2.31 | |||||
Diluted earnings per common share | 2.28 | 2.30 | |||||
Adjusted diluted earnings per common share(1) | 2.19 | 2.92 | |||||
Dividends declared per common share | 0.45 | 0.43 | |||||
Weighted average common shares outstanding - basic | 30,797,399 | 25,263,681 | |||||
Weighted average common shares outstanding - diluted | 30,903,222 | 25,366,807 | |||||
Performance metrics | |||||||
Yield on LHFI | 6.19 | % | 4.47 | % | |||
Yield on interest-earning assets | 5.50 | 3.66 | |||||
Cost of interest-bearing deposits | 3.03 | 0.40 | |||||
Cost of total deposits | 2.22 | 0.27 | |||||
NIM, FTE | 3.24 | 3.28 | |||||
NIM - FTE, adjusted(2) | 3.21 | 3.25 | |||||
ROAA | 0.94 | 0.93 | |||||
Adjusted ROAA(1) | 0.90 | 1.18 | |||||
Adjusted PTPP ROAA(1) | 1.32 | 1.54 | |||||
ROAE | 9.45 | 10.02 | |||||
Adjusted ROAE(1) | 9.08 | 12.76 | |||||
Adjusted PTPP ROAE(1) | 13.28 | 16.60 | |||||
ROATCE(1) | 11.47 | 11.17 | |||||
Adjusted ROATCE(1) | 11.01 | 14.22 | |||||
Efficiency ratio(3) | 62.99 | 61.08 | |||||
Adjusted efficiency ratio(1) | 60.81 | 54.64 |
____________________________ |
|
(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 adjusted 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 by removing the net purchase accounting accretion from the net interest income. |
(3) | Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income. |
Consolidated Quarterly Statements of Income (Unaudited) |
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Three Months Ended | ||||||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
||||||||||||||
Interest and dividend income | (Dollars in thousands, except per share amounts) | |||||||||||||||||
Interest and fees on loans | $ | 121,204 | $ | 115,442 | $ | 106,496 | $ | 99,178 | $ | 79,803 | ||||||||
Investment securities-taxable | 8,194 | 8,303 | 8,161 | 7,765 | 7,801 | |||||||||||||
Investment securities-nontaxable | 1,281 | 1,283 | 1,410 | 2,128 | 2,151 | |||||||||||||
Interest and dividend income on assets held in other financial institutions | 4,772 | 7,286 | 4,074 | 2,225 | 1,482 | |||||||||||||
Total interest and dividend income | 135,451 | 132,314 | 120,141 | 111,296 | 91,237 | |||||||||||||
Interest expense | ||||||||||||||||||
Interest-bearing deposits | 55,599 | 46,530 | 34,557 | 19,820 | 7,734 | |||||||||||||
FHLB advances and other borrowings | 3,207 | 7,951 | 5,880 | 4,208 | 2,717 | |||||||||||||
Subordinated indebtedness | 2,515 | 2,542 | 2,557 | 2,519 | 2,263 | |||||||||||||
Total interest expense | 61,321 | 57,023 | 42,994 | 26,547 | 12,714 | |||||||||||||
Net interest income | 74,130 | 75,291 | 77,147 | 84,749 | 78,523 | |||||||||||||
Provision for credit losses | 3,515 | 4,306 | 6,197 | 4,624 | 16,942 | |||||||||||||
Net interest income after provision for credit losses | 70,615 | 70,985 | 70,950 | 80,125 | 61,581 | |||||||||||||
Noninterest income | ||||||||||||||||||
Insurance commission and fee income | 6,443 | 6,185 | 7,011 | 5,054 | 5,666 | |||||||||||||
Service charges and fees | 4,621 | 4,722 | 4,571 | 4,663 | 4,734 | |||||||||||||
Mortgage banking revenue (loss) | 892 | 1,402 | 1,781 | 1,201 | (929 | ) | ||||||||||||
Other fee income | 944 | 970 | 942 | 1,132 | 1,162 | |||||||||||||
Swap fee income | 366 | 331 | 384 | 292 | 25 | |||||||||||||
(Loss) gain on sales of securities, net | (7,173 | ) | — | 144 | — | 1,664 | ||||||||||||
Limited partnership investment (loss) income | (425 | ) | 231 | 66 | (230 | ) | 112 | |||||||||||
Gain (loss) on sales and disposals of other assets, net | 45 | (111 | ) | 63 | 34 | 70 | ||||||||||||
Other income | 12,406 | 1,906 | 1,422 | 1,283 | 1,219 | |||||||||||||
Total noninterest income | 18,119 | 15,636 | 16,384 | 13,429 | 13,723 | |||||||||||||
Noninterest expense | ||||||||||||||||||
Salaries and employee benefits | 34,624 | 34,533 | 33,731 | 33,339 | 31,834 | |||||||||||||
Occupancy and equipment, net | 6,790 | 6,578 | 6,503 | 5,863 | 5,399 | |||||||||||||
Data processing | 2,775 | 2,837 | 2,916 | 2,868 | 2,689 | |||||||||||||
Intangible asset amortization | 2,264 | 2,552 | 2,553 | 2,554 | 1,872 | |||||||||||||
Office and operations | 2,868 | 2,716 | 2,303 | 2,277 | 2,121 | |||||||||||||
Professional services | 1,409 | 1,557 | 1,525 | 1,145 | 1,188 | |||||||||||||
Loan-related expenses | 1,220 | 1,256 | 1,465 | 1,676 | 1,599 | |||||||||||||
Advertising and marketing | 1,371 | 1,469 | 1,456 | 1,505 | 1,196 | |||||||||||||
Electronic banking | 1,384 | 1,216 | 1,009 | 1,058 | 1,087 | |||||||||||||
Franchise tax expense | 520 | 897 | 975 | 1,017 | 957 | |||||||||||||
Regulatory assessments | 1,913 | 1,732 | 951 | 1,242 | 877 | |||||||||||||
Communications | 390 | 407 | 384 | 434 | 279 | |||||||||||||
Merger-related expense | — | — | — | 1,179 | 3,614 | |||||||||||||
Other expenses | 1,135 | 1,137 | 989 | 1,097 | 1,529 | |||||||||||||
Total noninterest expense | 58,663 | 58,887 | 56,760 | 57,254 | 56,241 | |||||||||||||
Income before income tax expense | 30,071 | 27,734 | 30,574 | 36,300 | 19,063 | |||||||||||||
Income tax expense | 5,758 | 5,974 | 6,272 | 6,822 | 2,820 | |||||||||||||
Net income | $ | 24,313 | $ | 21,760 | $ | 24,302 | $ | 29,478 | $ | 16,243 | ||||||||
Basic earnings per common share | $ | 0.79 | $ | 0.71 | $ | 0.79 | $ | 0.96 | $ | 0.57 | ||||||||
Diluted earnings per common share | 0.79 | 0.70 | 0.79 | 0.95 | 0.57 |
Consolidated Balance Sheets (Unaudited) |
|||||||||||||||||||
(Dollars in thousands) | 2023 |
2023 |
2023 |
2022 |
2022 |
||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 141,705 | $ | 127,576 | $ | 117,309 | $ | 150,180 | $ | 118,505 | |||||||||
Interest-bearing deposits in banks | 163,573 | 338,414 | 707,802 | 208,792 | 181,965 | ||||||||||||||
Total cash and cash equivalents | 305,278 | 465,990 | 825,111 | 358,972 | 300,470 | ||||||||||||||
Securities: | |||||||||||||||||||
AFS | 1,290,839 | 1,535,702 | 1,591,334 | 1,641,484 | 1,672,170 | ||||||||||||||
Held to maturity, net of allowance for credit losses | 10,790 | 11,234 | 11,191 | 11,275 | 11,285 | ||||||||||||||
Securities carried at fair value through income | 6,772 | 6,106 | 6,413 | 6,368 | 6,347 | ||||||||||||||
Total securities | 1,308,401 | 1,553,042 | 1,608,938 | 1,659,127 | 1,689,802 | ||||||||||||||
Non-marketable equity securities held in other financial institutions | 63,842 | 58,446 | 77,036 | 67,378 | 53,899 | ||||||||||||||
Loans held for sale | 14,944 | 15,198 | 29,143 | 49,957 | 59,714 | ||||||||||||||
Loans | 7,568,063 | 7,622,689 | 7,375,823 | 7,090,022 | 6,882,681 | ||||||||||||||
Less: ALCL | 95,177 | 94,353 | 92,008 | 87,161 | 83,359 | ||||||||||||||
Loans, net of ALCL | 7,472,886 | 7,528,336 | 7,283,815 | 7,002,861 | 6,799,322 | ||||||||||||||
Premises and equipment, net | 111,700 | 105,501 | 104,047 | 100,201 | 99,291 | ||||||||||||||
Mortgage servicing rights | 19,189 | 19,086 | 18,261 | 20,824 | 21,654 | ||||||||||||||
Cash surrender value of bank-owned life insurance | 39,688 | 39,467 | 39,253 | 39,040 | 38,885 | ||||||||||||||
128,679 | 128,679 | 128,679 | 128,679 | 136,793 | |||||||||||||||
Other intangible assets, net | 42,460 | 44,724 | 47,277 | 49,829 | 52,384 | ||||||||||||||
Accrued interest receivable and other assets | 226,236 | 206,694 | 196,956 | 209,199 | 210,425 | ||||||||||||||
Total assets | $ | 9,733,303 | $ | 10,165,163 | $ | 10,358,516 | $ | 9,686,067 | $ | 9,462,639 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Noninterest-bearing deposits | $ | 2,008,671 | $ | 2,123,699 | $ | 2,247,782 | $ | 2,482,475 | $ | 2,667,489 | |||||||||
Interest-bearing deposits | 4,728,263 | 4,738,460 | 4,779,023 | 4,505,940 | 4,361,423 | ||||||||||||||
Time deposits | 1,637,554 | 1,627,884 | 1,147,505 | 787,287 | 748,415 | ||||||||||||||
Total deposits | 8,374,488 | 8,490,043 | 8,174,310 | 7,775,702 | 7,777,327 | ||||||||||||||
FHLB advances and other borrowings | 12,213 | 342,861 | 875,502 | 639,230 | 450,456 | ||||||||||||||
Subordinated indebtedness | 196,825 | 196,746 | 201,845 | 201,765 | 201,687 | ||||||||||||||
Accrued expenses and other liabilities | 150,832 | 137,654 | 114,272 | 119,427 | 126,145 | ||||||||||||||
Total liabilities | 8,734,358 | 9,167,304 | 9,365,929 | 8,736,124 | 8,555,615 | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Common stock | 154,534 | 154,331 | 153,904 | 153,733 | 153,309 | ||||||||||||||
Additional paid-in capital | 525,434 | 524,302 | 522,124 | 520,669 | 518,376 | ||||||||||||||
Retained earnings | 491,706 | 472,105 | 455,040 | 435,416 | 410,572 | ||||||||||||||
Accumulated other comprehensive loss | (172,729 | ) | (152,879 | ) | (138,481 | ) | (159,875 | ) | (175,233 | ) | |||||||||
Total stockholders’ equity | 998,945 | 997,859 | 992,587 | 949,943 | 907,024 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,733,303 | $ | 10,165,163 | $ | 10,358,516 | $ | 9,686,067 | $ | 9,462,639 |
Loan Data (Unaudited) |
|||||||||||||||||||
At and For the Three Months Ended | |||||||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
|||||||||||||||
LHFI | (Dollars in thousands) | ||||||||||||||||||
Owner occupied commercial real estate | $ | 932,109 | $ | 915,861 | $ | 855,887 | $ | 843,006 | $ | 800,981 | |||||||||
Non-owner occupied commercial real estate | 1,503,782 | 1,512,303 | 1,529,513 | 1,461,672 | 1,373,366 | ||||||||||||||
Owner occupied construction/land/land development | 252,168 | 259,984 | 252,617 | 265,838 | 248,602 | ||||||||||||||
Non-owner occupied construction/land/land development | 824,588 | 762,255 | 696,009 | 679,787 | 604,709 | ||||||||||||||
Residential real estate - single family | 1,338,382 | 1,284,955 | 1,231,022 | 1,173,316 | 1,104,277 | ||||||||||||||
Residential real estate - multi-family | 349,787 | 348,703 | 357,469 | 304,222 | 294,905 | ||||||||||||||
Total real estate loans | 5,200,816 | 5,084,061 | 4,922,517 | 4,727,841 | 4,426,840 | ||||||||||||||
Commercial and industrial | 2,058,073 | 1,977,028 | 2,091,093 | 2,051,161 | 1,967,037 | ||||||||||||||
Mortgage warehouse lines of credit | 286,293 | 537,627 | 337,529 | 284,867 | 460,573 | ||||||||||||||
Consumer | 22,881 | 23,973 | 24,684 | 26,153 | 28,231 | ||||||||||||||
Total LHFI | 7,568,063 | 7,622,689 | 7,375,823 | 7,090,022 | 6,882,681 | ||||||||||||||
Less: allowance for loan credit losses ("ALCL") | 95,177 | 94,353 | 92,008 | 87,161 | 83,359 | ||||||||||||||
LHFI, net | $ | 7,472,886 | $ | 7,528,336 | $ | 7,283,815 | $ | 7,002,861 | $ | 6,799,322 | |||||||||
Nonperforming assets | |||||||||||||||||||
Nonperforming LHFI | |||||||||||||||||||
Commercial real estate | $ | 942 | $ | 3,510 | $ | 3,100 | $ | 526 | $ | 431 | |||||||||
Construction/land/land development | 235 | 183 | 226 | 270 | 366 | ||||||||||||||
Residential real estate | 13,236 | 16,345 | 8,969 | 7,712 | 7,641 | ||||||||||||||
Commercial and industrial | 17,072 | 13,480 | 4,730 | 1,383 | 5,134 | ||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 385 | ||||||||||||||
Consumer | 123 | 91 | 53 | 49 | 74 | ||||||||||||||
Total nonperforming LHFI | 31,608 | 33,609 | 17,078 | 9,940 | 14,031 | ||||||||||||||
Nonperforming loans held for sale | — | — | 4,646 | 3,933 | 2,698 | ||||||||||||||
Total nonperforming loans | 31,608 | 33,609 | 21,724 | 13,873 | 16,729 | ||||||||||||||
Repossessed assets | 3,939 | 908 | 806 | 806 | 1,781 | ||||||||||||||
Total nonperforming assets | $ | 35,547 | $ | 34,517 | $ | 22,530 | $ | 14,679 | $ | 18,510 | |||||||||
Classified assets | $ | 67,960 | $ | 85,206 | $ | 86,975 | $ | 75,009 | $ | 71,562 | |||||||||
Past due LHFI(1) | 20,347 | 19,836 | 11,498 | 10,932 | 10,866 | ||||||||||||||
Allowance for loan credit losses | |||||||||||||||||||
Balance at beginning of period | $ | 94,353 | $ | 92,008 | $ | 87,161 | $ | 83,359 | $ | 63,123 | |||||||||
Provision for loan credit losses | 3,510 | 4,264 | 6,158 | 3,982 | 15,787 | ||||||||||||||
ALCL - BTH merger | — | — | — | — | 5,527 | ||||||||||||||
Loans charged off | 3,202 | 2,751 | 2,293 | 2,537 | 1,628 | ||||||||||||||
Loan recoveries | 516 | 832 | 982 | 2,357 | 550 | ||||||||||||||
Net charge-offs | 2,686 | 1,919 | 1,311 | 180 | 1,078 | ||||||||||||||
Balance at end of period | $ | 95,177 | $ | 94,353 | $ | 92,008 | $ | 87,161 | $ | 83,359 | |||||||||
Credit quality ratios | |||||||||||||||||||
Total nonperforming assets to total assets | 0.37 | % | 0.34 | % | 0.22 | % | 0.15 | % | 0.20 | % | |||||||||
Total nonperforming loans to total loans | 0.42 | 0.44 | 0.29 | 0.19 | 0.24 | ||||||||||||||
Nonperforming LHFI to LHFI | 0.42 | 0.44 | 0.23 | 0.14 | 0.20 | ||||||||||||||
Past due LHFI to LHFI | 0.27 | 0.26 | 0.16 | 0.15 | 0.16 | ||||||||||||||
ALCL to nonperforming LHFI | 301.12 | 280.74 | 538.75 | 876.87 | 594.11 | ||||||||||||||
ALCL to total LHFI | 1.26 | 1.24 | 1.25 | 1.23 | 1.21 | ||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.30 | 1.32 | 1.30 | 1.28 | 1.29 | ||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.14 | 0.10 | 0.07 | 0.01 | 0.07 |
____________________________ |
|
(1) | Past due LHFI are defined as loans 30 days or more past due. |
(2) | The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL. |
Average Balances and Yields/Rates (Unaudited) |
|||||||||||||||||
Three Months Ended | |||||||||||||||||
Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||
Assets | (Dollars in thousands) | ||||||||||||||||
Commercial real estate | $ | 2,428,969 | 5.73 | % | $ | 2,406,625 | 5.56 | % | $ | 2,046,411 | 4.64 | % | |||||
Construction/land/land development | 1,044,180 | 7.04 | 972,032 | 6.70 | 760,682 | 5.20 | |||||||||||
Residential real estate | 1,663,291 | 5.06 | 1,615,211 | 4.91 | 1,249,746 | 4.36 | |||||||||||
Commercial and industrial ("C&I") | 2,024,675 | 7.62 | 2,059,285 | 7.59 | 1,816,912 | 5.64 | |||||||||||
Mortgage warehouse lines of credit | 376,275 | 7.21 | 396,348 | 6.49 | 491,584 | 4.53 | |||||||||||
Consumer | 23,704 | 7.74 | 24,812 | 7.26 | 24,137 | 6.80 | |||||||||||
LHFI | 7,561,094 | 6.35 | 7,474,313 | 6.18 | 6,389,472 | 4.94 | |||||||||||
Loans held for sale | 11,829 | 5.81 | 22,504 | 4.28 | 29,927 | 4.12 | |||||||||||
Loans receivable | 7,572,923 | 6.35 | 7,496,817 | 6.18 | 6,419,399 | 4.93 | |||||||||||
Investment securities-taxable | 1,310,459 | 2.48 | 1,371,361 | 2.43 | 1,547,848 | 2.00 | |||||||||||
Investment securities-nontaxable | 216,700 | 2.35 | 220,345 | 2.33 | 317,175 | 2.69 | |||||||||||
Non-marketable equity securities held in other financial institutions | 58,421 | 6.47 | 79,143 | 5.92 | 73,819 | 2.10 | |||||||||||
Interest-bearing balances due from banks | 279,383 | 5.42 | 476,555 | 5.15 | 206,781 | 2.09 | |||||||||||
Total interest-earning assets | 9,437,886 | 5.69 | 9,644,221 | 5.50 | 8,565,022 | 4.23 | |||||||||||
Noninterest-earning assets(1) | 597,678 | 546,135 | 637,399 | ||||||||||||||
Total assets | $ | 10,035,564 | $ | 10,190,356 | $ | 9,202,421 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||
Savings and interest-bearing transaction accounts | $ | 4,728,211 | 3.28 | % | $ | 4,740,963 | 2.90 | % | $ | 4,157,092 | 0.66 | % | |||||
Time deposits | 1,626,935 | 4.04 | 1,378,659 | 3.56 | 669,900 | 0.51 | |||||||||||
Total interest-bearing deposits | 6,355,146 | 3.47 | 6,119,622 | 3.05 | 4,826,992 | 0.64 | |||||||||||
FHLB advances and other borrowings | 230,815 | 5.51 | 606,148 | 5.26 | 538,020 | 2.00 | |||||||||||
Subordinated indebtedness | 196,792 | 5.07 | 200,160 | 5.09 | 186,803 | 4.81 | |||||||||||
Total interest-bearing liabilities | 6,782,753 | 3.59 | 6,925,930 | 3.30 | 5,551,815 | 0.91 | |||||||||||
Noninterest-bearing liabilities | |||||||||||||||||
Noninterest-bearing deposits | 2,088,183 | 2,139,973 | 2,582,500 | ||||||||||||||
Other liabilities(1) | 151,716 | 127,630 | 129,354 | ||||||||||||||
Total liabilities | 9,022,652 | 9,193,533 | 8,263,669 | ||||||||||||||
Stockholders’ Equity | 1,012,912 | 996,823 | 938,752 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 10,035,564 | $ | 10,190,356 | $ | 9,202,421 | |||||||||||
Net interest spread | 2.10 | % | 2.20 | % | 3.32 | % | |||||||||||
NIM | 3.12 | 3.13 | 3.64 | ||||||||||||||
NIM - FTE(2) | 3.14 | 3.16 | 3.68 | ||||||||||||||
NIM - FTE, adjusted(3) | 3.14 | 3.14 | 3.61 |
____________________________ |
|
(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 by removing the net purchase accounting accretion from the net interest income. |
Non-GAAP Financial Measures (Unaudited) |
|||||||||||||||||||
At and For the Three Months Ended | |||||||||||||||||||
2023 |
2023 |
2023 |
2022 |
2022 |
|||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Calculation of adjusted net income: | |||||||||||||||||||
Net interest income after provision for credit losses | $ | 70,615 | $ | 70,985 | $ | 70,950 | $ | 80,125 | $ | 61,581 | |||||||||
Add: CECL provision for non-PCD loans | — | — | — | — | 14,890 | ||||||||||||||
Adjusted net interest income after provision for credit losses | 70,615 | 70,985 | 70,950 | 80,125 | 76,471 | ||||||||||||||
Total noninterest income | $ | 18,119 | $ | 15,636 | $ | 16,384 | $ | 13,429 | $ | 13,723 | |||||||||
Less: GNMA MSR impairment | — | — | — | — | (1,950 | ) | |||||||||||||
Less: (loss) gain on sales of securities, net | (7,173 | ) | — | 144 | — | 1,664 | |||||||||||||
Less: gain on sub-debt repurchase | — | 471 | — | — | — | ||||||||||||||
Less: positive valuation adjustment on non-marketable equity securities | 10,096 | — | — | — | — | ||||||||||||||
Adjusted total noninterest income | 15,196 | 15,165 | 16,240 | 13,429 | 14,009 | ||||||||||||||
Total noninterest expense | $ | 58,663 | $ | 58,887 | $ | 56,760 | $ | 57,254 | $ | 56,241 | |||||||||
Less: merger-related expenses | — | — | — | 1,179 | 3,614 | ||||||||||||||
Adjusted total noninterest expense | 58,663 | 58,887 | 56,760 | 56,075 | 52,627 | ||||||||||||||
Income tax expense | $ | 5,758 | $ | 5,974 | $ | 6,272 | $ | 6,822 | $ | 2,820 | |||||||||
Add: income tax expense on adjustment items | (614 | ) | (99 | ) | (30 | ) | 248 | 3,946 | |||||||||||
Adjusted income tax expense | 5,144 | 5,875 | 6,242 | 7,070 | 6,766 | ||||||||||||||
Net income | $ | 24,313 | $ | 21,760 | $ | 24,302 | $ | 29,478 | $ | 16,243 | |||||||||
Adjusted net income | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Calculation of adjusted PTPP earnings: | |||||||||||||||||||
Provision for credit losses | $ | 3,515 | $ | 4,306 | $ | 6,197 | $ | 4,624 | $ | 16,942 | |||||||||
Less: CECL provision for non-PCD loans | — | — | — | — | 14,890 | ||||||||||||||
Adjusted provision for credit losses | $ | 3,515 | $ | 4,306 | $ | 6,197 | $ | 4,624 | $ | 2,052 | |||||||||
Adjusted net income | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Add: adjusted provision for credit losses | 3,515 | 4,306 | 6,197 | 4,624 | 2,052 | ||||||||||||||
Add: adjusted income tax expense | 5,144 | 5,875 | 6,242 | 7,070 | 6,766 | ||||||||||||||
Adjusted PTPP Earnings | $ | 30,663 | $ | 31,569 | $ | 36,627 | $ | 42,103 | $ | 39,905 | |||||||||
Calculation of adjusted dilutive EPS: | |||||||||||||||||||
Numerator: | |||||||||||||||||||
Adjusted net income | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Denominator: | |||||||||||||||||||
Weighted average diluted common shares outstanding | 30,943,860 | 30,872,834 | 30,882,156 | 30,867,511 | 28,481,619 | ||||||||||||||
Diluted earnings per share | $ | 0.79 | $ | 0.70 | $ | 0.79 | $ | 0.95 | $ | 0.57 | |||||||||
Adjusted diluted earnings per share | 0.71 | 0.69 | 0.78 | 0.99 | 1.09 | ||||||||||||||
Calculation of adjusted ROAA and adjusted ROAE: | |||||||||||||||||||
Adjusted net income | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized adjusted net income | $ | 87,298 | $ | 85,787 | $ | 98,096 | $ | 120,644 | $ | 123,334 | |||||||||
Divided by total average assets | 10,035,564 | 10,190,356 | 9,783,602 | 9,530,543 | 9,202,421 | ||||||||||||||
ROAA (annualized) | 0.96 | % | 0.86 | % | 1.01 | % | 1.23 | % | 0.70 | % | |||||||||
Adjusted ROAA (annualized) | 0.87 | 0.84 | 1.00 | 1.27 | 1.34 | ||||||||||||||
Divided by total average stockholders' equity | $ | 1,012,912 | $ | 996,823 | $ | 976,044 | $ | 913,850 | $ | 938,752 | |||||||||
ROAE (annualized) | 9.52 | % | 8.76 | % | 10.10 | % | 12.80 | % | 6.86 | % | |||||||||
Adjusted ROAE (annualized) | 8.62 | 8.61 | 10.05 | 13.20 | 13.14 | ||||||||||||||
Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||||||||||||||
Adjusted PTPP earnings | $ | 30,663 | $ | 31,569 | $ | 36,627 | $ | 42,103 | $ | 39,905 | |||||||||
Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||
Multiplied by the number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Adjusted PTPP earnings, annualized | $ | 121,652 | $ | 126,623 | $ | 148,543 | $ | 167,039 | $ | 158,319 | |||||||||
Divided by total average assets | $ | 10,035,564 | $ | 10,190,356 | $ | 9,783,602 | $ | 9,530,543 | $ | 9,202,421 | |||||||||
Adjusted PTPP ROAA(annualized) | 1.21 | % | 1.24 | % | 1.52 | % | 1.75 | % | 1.72 | % | |||||||||
Divided by total average stockholders' equity | $ | 1,012,912 | $ | 996,823 | $ | 976,044 | $ | 913,850 | $ | 938,752 | |||||||||
Adjusted PTPP ROAE (annualized) | 12.01 | % | 12.70 | % | 15.22 | % | 18.28 | % | 16.86 | % | |||||||||
Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share: | |||||||||||||||||||
Total assets | $ | 9,733,303 | $ | 10,165,163 | $ | 10,358,516 | $ | 9,686,067 | $ | 9,462,639 | |||||||||
Less: goodwill | 128,679 | 128,679 | 128,679 | 128,679 | 136,793 | ||||||||||||||
Less: other intangible assets, net | 42,460 | 44,724 | 47,277 | 49,829 | 52,384 | ||||||||||||||
Tangible assets | 9,562,164 | 9,991,760 | 10,182,560 | 9,507,559 | 9,273,462 | ||||||||||||||
Total common stockholders’ equity | $ | 998,945 | $ | 997,859 | $ | 992,587 | $ | 949,943 | $ | 907,024 | |||||||||
Less: goodwill | 128,679 | 128,679 | 128,679 | 128,679 | 136,793 | ||||||||||||||
Less: other intangible assets, net | 42,460 | 44,724 | 47,277 | 49,829 | 52,384 | ||||||||||||||
Tangible common equity | 827,806 | 824,456 | 816,631 | 771,435 | 717,847 | ||||||||||||||
Less: accumulated other comprehensive loss | (172,729 | ) | (152,879 | ) | (138,481 | ) | (159,875 | ) | (175,233 | ) | |||||||||
Adjusted tangible common equity | 1,000,535 | 977,335 | 955,112 | 931,310 | 893,080 | ||||||||||||||
Divided by common shares outstanding at the end of the period | 30,906,716 | 30,866,205 | 30,780,853 | 30,746,600 | 30,661,734 | ||||||||||||||
Book value per common share | $ | 32.32 | $ | 32.33 | $ | 32.25 | $ | 30.90 | $ | 29.58 | |||||||||
Tangible book value per common share | 26.78 | 26.71 | 26.53 | 25.09 | 23.41 | ||||||||||||||
Adjusted tangible book value per common share | 32.37 | 31.66 | 31.03 | 30.29 | 29.13 | ||||||||||||||
Tangible common equity to tangible assets | 8.66 | % | 8.25 | % | 8.02 | % | 8.11 | % | 7.74 | % | |||||||||
Calculation of ROATCE and adjusted ROATCE: | |||||||||||||||||||
Net income | $ | 24,313 | $ | 21,760 | $ | 24,302 | $ | 29,478 | $ | 16,243 | |||||||||
Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized net income | $ | 96,459 | $ | 87,279 | $ | 98,558 | $ | 116,951 | $ | 64,442 | |||||||||
Adjusted net income | $ | 22,004 | $ | 21,388 | $ | 24,188 | $ | 30,409 | $ | 31,087 | |||||||||
Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||
Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||
Annualized adjusted net income | $ | 87,298 | $ | 85,787 | $ | 98,096 | $ | 120,644 | $ | 123,334 | |||||||||
Total average common stockholders’ equity | $ | 1,012,912 | $ | 996,823 | $ | 976,044 | $ | 913,850 | $ | 938,752 | |||||||||
Less: average goodwill | 128,679 | 128,679 | 128,679 | 131,302 | 95,696 | ||||||||||||||
Less: average other intangible assets, net | 43,901 | 46,379 | 48,950 | 51,495 | 40,918 | ||||||||||||||
Average tangible common equity | 840,332 | 821,765 | 798,415 | 731,053 | 802,138 | ||||||||||||||
ROATCE | 11.48 | % | 10.62 | % | 12.34 | % | 16.00 | % | 8.03 | % | |||||||||
Adjusted ROATCE | 10.39 | 10.44 | 12.29 | 16.50 | 15.38 | ||||||||||||||
Calculation of adjusted efficiency ratio: | |||||||||||||||||||
Total noninterest expense | $ | 58,663 | $ | 58,887 | $ | 56,760 | $ | 57,254 | $ | 56,241 | |||||||||
Less: insurance and mortgage noninterest expense | 8,579 | 9,156 | 8,033 | 8,031 | 8,479 | ||||||||||||||
Less: merger-related expenses | — | — | — | 1,179 | 3,614 | ||||||||||||||
Adjusted total noninterest expense | 50,084 | 49,731 | 48,727 | 48,044 | 44,148 | ||||||||||||||
Net interest income | $ | 74,130 | $ | 75,291 | $ | 77,147 | $ | 84,749 | $ | 78,523 | |||||||||
Less: insurance and mortgage net interest income | 2,120 | 1,574 | 1,493 | 1,376 | 1,208 | ||||||||||||||
Add: Total noninterest income | 18,119 | 15,636 | 16,384 | 13,429 | 13,723 | ||||||||||||||
Less: insurance and mortgage noninterest income | 7,335 | 7,587 | 8,792 | 6,255 | 4,737 | ||||||||||||||
Less: positive valuation adjustment on non-marketable equity securities | 10,096 | — | — | — | — | ||||||||||||||
Less: (loss) gain on sale of securities, net | (7,173 | ) | — | 144 | — | 1,664 | |||||||||||||
Less: gain on sub-debt repurchase | — | 471 | — | — | — | ||||||||||||||
Adjusted total revenue | 79,871 | 81,295 | 83,102 | 90,547 | 84,637 | ||||||||||||||
Efficiency ratio | 63.59 | % | 64.76 | % | 60.69 | % | 58.32 | % | 60.97 | % | |||||||||
Adjusted efficiency ratio | 62.71 | 61.17 | 58.64 | 53.06 | 52.16 |
Non-GAAP Financial Measures - Continued (Unaudited) |
|||||||
Nine Months Ended |
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2023 | 2022 | ||||||
(Dollars in thousands, except per share amounts) | |||||||
Calculation of adjusted net income: | |||||||
Net interest income after provision for credit losses | $ | 212,550 | $ | 170,462 | |||
Add: CECL provision for non-PCD loans | — | 14,890 | |||||
Adjusted net interest income after provision for credit losses | 212,550 | 185,352 | |||||
Total noninterest income | $ | 50,139 | $ | 43,845 | |||
Less: GNMA MSR impairment | — | (1,950 | ) | ||||
Less: (loss) gain on sales of securities, net | (7,029 | ) | 1,664 | ||||
Less: gain on sub-debt repurchase | 471 | — | |||||
Less: positive valuation adjustment on non-marketable equity securities | 10,096 | — | |||||
Adjusted total noninterest income | 46,601 | 44,131 | |||||
Total noninterest expense | $ | 174,310 | $ | 143,165 | |||
Less: merger-related expense | — | 4,992 | |||||
Adjusted total noninterest expense | 174,310 | 138,173 | |||||
Income tax expense | $ | 18,004 | $ | 12,905 | |||
Add: income tax expense on adjustment items | (743 | ) | 4,235 | ||||
Adjusted income tax expense | 17,261 | 17,140 | |||||
Net Income | $ | 70,375 | $ | 58,237 | |||
Adjusted net income | $ | 67,580 | $ | 74,170 | |||
Calculation of adjusted PTPP earnings: | |||||||
Provision for credit losses | $ | 14,018 | $ | 20,067 | |||
Less: CECL provision for non-PCD loans | — | 14,890 | |||||
Adjusted provision for credit losses | $ | 14,018 | $ | 5,177 | |||
Adjusted net income | $ | 67,580 | $ | 74,170 | |||
Add: provision for credit losses | 14,018 | 5,177 | |||||
Add: adjusted income tax expense | 17,261 | 17,140 | |||||
Adjusted PTPP earnings | $ | 98,859 | $ | 96,487 | |||
Calculation of adjusted dilutive EPS: | |||||||
Numerator: | |||||||
Adjusted net income | $ | 67,580 | $ | 74,170 | |||
Denominator: | |||||||
Weighted average diluted common shares outstanding | 30,903,222 | 25,366,807 | |||||
Diluted earnings per share | $ | 2.28 | $ | 2.30 | |||
Adjusted diluted earnings per share | 2.19 | 2.92 | |||||
Calculation of adjusted ROAA and adjusted ROAE: | |||||||
Adjusted net income | $ | 67,580 | $ | 74,170 | |||
Divided by the year-to-date number of days | 273 | 273 | |||||
Multiplied by number of days in the year | 365 | 365 | |||||
Annualized adjusted net income | $ | 90,354 | $ | 99,165 | |||
Divided by total average assets | $ | 10,004,097 | $ | 8,401,701 | |||
ROAA (annualized) | 0.94 | % | 0.93 | % | |||
Adjusted ROAA (annualized) | 0.90 | 1.18 | |||||
Divided by total average stockholders' equity | $ | 995,395 | $ | 776,985 | |||
ROAE (annualized) | 9.45 | % | 10.02 | % | |||
Adjusted ROAE (annualized) | 9.08 | 12.76 | |||||
Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||
Adjusted PTPP Earnings | $ | 98,859 | $ | 96,487 | |||
Divided by the year-to-date number of days | 273 | 273 | |||||
Multiplied by number of days in the year | 365 | 365 | |||||
Annualized adjusted PTPP Earnings | $ | 132,174 | $ | 129,003 | |||
Divided by total average assets | $ | 10,004,097 | $ | 8,401,701 | |||
Adjusted PTPP ROAA (annualized) | 1.32 | % | 1.54 | % | |||
Divided by total average stockholders' equity | $ | 995,395 | $ | 776,985 | |||
Adjusted PTPP ROAE (annualized) | 13.28 | % | 16.60 | % | |||
Calculation of ROATCE and adjusted ROATCE: | |||||||
Net income | $ | 70,375 | $ | 58,237 | |||
Divided by the year-to-date number of days | 273 | 273 | |||||
Multiplied by number of days in the year | 365 | 365 | |||||
Annualized net income | $ | 94,091 | $ | 77,863 | |||
Adjusted net income | $ | 67,580 | $ | 74,170 | |||
Divided by the year-to-date number of days | 273 | 273 | |||||
Multiplied by number of days in the year | 365 | 365 | |||||
Annualized adjusted net income | $ | 90,354 | $ | 99,165 | |||
Total average common stockholders’ equity | $ | 995,395 | $ | 776,985 | |||
Less: average goodwill | 128,679 | 54,963 | |||||
Less: average other intangible assets, net | 46,391 | 24,733 | |||||
Average tangible common equity | 820,325 | 697,289 | |||||
ROATCE | 11.47 | % | 11.17 | % | |||
Adjusted ROATCE | 11.01 | 14.22 | |||||
Calculation of adjusted efficiency ratio: | |||||||
Total noninterest expense | $ | 174,310 | $ | 143,165 | |||
Less: insurance and mortgage noninterest expense | 25,768 | 25,502 | |||||
Less: merger-related expenses | — | 4,992 | |||||
Adjusted total noninterest expense | 148,542 | 112,671 | |||||
Net interest income | $ | 226,568 | $ | 190,529 | |||
Less: insurance and mortgage net interest income | 5,187 | 3,165 | |||||
Add: total noninterest income | 50,139 | 43,845 | |||||
Less: insurance and mortgage noninterest income | 23,714 | 23,336 | |||||
Less: (loss) gain on sales of securities, net | (7,029 | ) | 1,664 | ||||
Less: gain on sub-debt repurchase | 471 | — | |||||
Less: positive valuation adjustment on non-marketable equity securities | 10,096 | — | |||||
Adjusted total revenue | 244,268 | 206,209 | |||||
Efficiency ratio | 62.99 | % | 61.08 | % | |||
Adjusted efficiency ratio | 60.81 | 54.64 |
![](https://ml.globenewswire.com/media/OGE5MmMwZTUtZGY0YS00ZjQ3LTk1ZTMtZjZjNTRmNWExMzc0LTExMTA5MDg=/tiny/Origin-Bancorp-Inc-.png)
Source: Origin Bancorp, Inc.