Reliant Bancorp, Inc. Reports Record Results for Second Quarter 2019

$0.38 Diluted EPS, up 11.8% YoY (Adjusted 2018 EPS)

3.57% NIM / 0.96% ROAA / 8.0% ROAE / $19.11 BVPS

16.0% Loan Growth (Annualized) / $150MM New Loan Production

10.5% ROATCE / 8.7% Annualized Increase in TBVPS

BRENTWOOD, Tenn.--()--Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) (Nasdaq: RBNC), the parent company for Reliant Bank (“Reliant” or the “Bank”), reported net income of $4.2 million and $0.38 per diluted common share for the second quarter of 2019, compared to $2.1 million and $0.19 per diluted common share for the second quarter of 2018, or $3.9 million and $0.34 per diluted common share when second quarter of 2018 results are adjusted for merger-related expense and accretion (non-GAAP).

“We are very pleased to report record results for our Company in the second quarter. Earnings were primarily driven by strong revenue growth, good expense control, and superior asset quality. Our team produced at a high level, and we achieved growth in all of our key markets. Loan production of $150.0 million was 29% higher than the first quarter, and both new C&I and construction loans were particularly strong, a reflection of the confidence our customers have in the Nashville and Chattanooga economies," stated DeVan Ard, Jr., Chairman, President & CEO of the Company.

"Additionally, we made progress improving our asset mix and accelerated the pace of our share repurchase program,” continued Ard.

Quarterly Highlights

Consistent Double-Digit, Organic Loan Growth Driving Revenue Growth and Improving Asset Mix

Loans Held for Investment increased by $50.5 million, 16.0% annualized, quarter-over-quarter and $170.2 million, or 14.9% year-over-year, to $1.3 billion. New loan production totaled $150.0 million at a 5.54% weighted average rate ("WAR"). Construction and C&I loans accounted for $62.9 million and $36.6 million, respectively, for the second quarter of 2019's loan production. The Company partially funded loan growth through a $25.5 million reduction of the bond portfolio. At June 30, 2019, Loans Held for Investment comprised 73.2% of assets, up from 68.8% at June 30, 2018.

Ard stated, "Our bankers' ability to consistently generate high-quality, organic loan growth has improved our asset mix over the past year increasing Loans Held for Investment to 73.2% of assets at June 30, 2019, up from 68.8% at June 30, 2018. We expect this trend to continue."

Optimizing Funding Mix Remains a Priority

Deposits increased by $39.0 million, 10.3% annualized, quarter-over-quarter and $216.0 million, or 16.2% year-over-year, to $1.6 billion. Our cost of funds increased 8 basis points quarter-over-quarter and represented the largest factor contributing to the overall 6 basis points reduction in net interest margin. Average retail and wholesale deposit costs increased during the second quarter of 2019 reflecting the macro and local rate environment; however, late in the second quarter of 2019, brokered deposit offering rates began to decline. To take advantage of this trend, we reduced the State of Tennessee CD portfolio by $39.5 million at a weighted average cost ("WAC") of 2.35% and the wholesale money market deposit portfolio by $20.1 million at a WAC of 2.67% and replaced those funds with short duration brokered CDs with a 2.26% WAC. We expect the cost of brokered CDs to continue to decline in the short-term. Ard continued, "While our bankers work hard to generate core deposits in a very competitive environment, we strategically use wholesale funding sources to supplement their efforts to meet our liquidity needs as efficiently as possible."

Profitability Driven by Proactive Management of Non-Interest Expense

Non-interest expense ("NIE") for the second quarter of 2019 increased 3.0% from the first quarter of 2019 and 13.6% from the second quarter of 2018 (merger expense not included) to $13.1 million; however, core bank segment NIE, which excludes mortgage subsidiary NIE, decreased 3.0% quarter-over-quarter. The year-over-year increase in operating expense is primarily driven by investments in upgrading business development and leadership personnel and the opening of new branches in Murfreesboro and Chattanooga during the second half of 2018. Core bank segment NIE as a percentage of average assets has remained relatively constant, 2.3% for second quarter of 2019, 2.4% for first quarter of 2019 and 2.3% for second quarter of 2018.

Asset Quality Remains a Hallmark of The Franchise

The Company has steadily improved key asset-quality metrics over the past year. Non-performing assets decreased to $4.9 million, or 0.27% of total assets, at June 30, 2019 from $6.1 million, or 0.35% of total assets, at March 31, 2019 and $6.5 million, or 0.39% of total assets, at June 30, 2018. Moreover, criticized and classified loans decreased to 0.78% of total loans at June 30, 2019, compared to 0.94% at March 31, 2019 and 1.11% at June 30, 2018.

The loan loss reserve was 0.89% of Loans Held for Investment at June 30, 2019 (1.17% when unamortized purchased loan discounts are included), down 1 basis point from March 31, 2019. The Provision for Loan Losses of $0.2 million was realized during the second quarter of 2019 to support portfolio growth. For the second consecutive quarter, we realized net recoveries.

Financial Strength Positions Company for Growth

Stockholders’ equity decreased by $1.2 million quarter-over-quarter to $213.9 million at June 30, 2019, primarily due to the repurchase of $7.6 million of common shares in the second quarter of 2019 ($8.3 million of share repurchases year-to-date). Book value per share increased by $0.41, or 8.8% annualized, to $19.11. Both the Company and the Bank continue to be classified as “Well Capitalized” financial institutions. Ard added, “Being a 'Well Capitalized' financial institution provides us with opportunities to grow both organically and via acquisition. We periodically evaluate acquisition opportunities but have remained disciplined in our M&A approach.”

Creating Shareholder Value

Tangible book value per share ("TBVPS") (non-GAAP) increased by $0.31, or 8.7% annualized, to $14.52 from the first quarter of 2019 and by $1.46, or 11.2%, from the second quarter of 2018. Return on average tangible common equity ("ROATCE") (non-GAAP) was 10.5% for the second quarter of 2019, up significantly from the second quarter of 2018, and 82 basis points from the first quarter of 2019.

Our financial success permits us to meet regulatory capital requirements and still provide a tangible return to our shareholders. We declared a $0.09 per share dividend, a 12.5% year-over-year increase, payable on July 18, 2019. Additionally, we have returned $8.3 million year-to-date to shareholders via the repurchase of over 365,000 common shares,” Ard concluded.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures. The non-GAAP measures in this release include “adjusted net interest margin,” “adjusted net income attributable to common shareholders and related impact,” "average tangible stockholders' equity," "ROATCE," "adjusted ROATCE," "tangible assets," tangible equity," "TBVPS," "efficiency ratio (subsidiary bank only excluding mortgage segment)," and "adjusted loan loss reserve." We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe certain purchase accounting adjustments, income relating to the recoveries of purchased credit impaired loans, and merger expenses do not necessarily reflect the operational performance of the business in these periods; accordingly, it is useful to consider these line items with and without such adjustments. We believe this presentation also increases comparability of period-to-period results.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under generally accepted accounting principles.

Conference Call Information

The Company will hold a conference call to discuss second quarter 2019 results on Wednesday, July 24, 2019, at 9:00 a.m. CDT, and the earnings conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1855/30982. A link to these events can be found on the Company’s website at www.reliantbank.com and will be available for 12 months. Related presentation materials will be posted to the “Investor Relations” section of the Company’s web site at www.reliantbank.com prior to the call.

About Reliant Bancorp, Inc. and Reliant Bank

Reliant Bancorp, Inc. is a Brentwood, Tennessee-based bank holding company which, through its wholly owned subsidiary Reliant Bank, operates banking centers in Davidson, Hamilton, Hickman, Maury, Robertson, Rutherford, Sumner, and Williamson counties, Tennessee. Reliant Bank is a full-service commercial bank that offers a variety of deposit, lending, and mortgage products and services to business and consumer customers. As of June 30, 2019, Reliant Bancorp had approximately $1.8 billion in total consolidated assets, approximately $1.3 billion in loans and approximately $1.6 billion in deposits. For additional information, locations and hours of operation, please visit www.reliantbank.com.

Forward Looking Statements

All statements, other than statements of historical fact, included in this release and any oral statements made regarding the subject of this release, including in the conference call referenced herein, that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to the ability to generate organic loan growth, brokered CD costs and acquisition opportunities. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the Company’s future financial and operating results and the Company’s plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others: (1) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (2) increased levels of other real estate, primarily as a result of foreclosures, (3) the impact of liquidity needs on our results of operations and financial condition, (4) competition from financial institutions and other financial service providers, (5) the effect of interest rate increases on the cost of deposits, (6) unanticipated weakness in loan demand or loan pricing, (7) lack of strategic growth opportunities or our failure to execute on those opportunities, (8) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (9) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (10) our ability to effectively manage problem credits, (11) our ability to successfully implement efficiency initiatives on time and in amounts projected, (12) our ability to successfully develop and market new products and technology, (13) the impact of negative developments in the financial industry and U.S. and global capital and credit markets, (14) our ability to retain the services of key personnel, (15) our ability to adapt to technological changes, (16) risks associated with litigation, including the applicability of insurance coverage, (17) the vulnerability of the Bank’s network and online banking portals, and the systems of parties with whom the Company and the Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches, (18) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (19) adverse results (including costs, fines, reputational harm, and/or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, and (20) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company’s ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.

 

RELIANT BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

June 30, 2019, March 31, 2019 and June 30, 2018

(Dollar Amounts in Thousands)

ASSETS

June 30,
2019

 

March 31,
2019

 

June 30,
2018

 

Unaudited

 

Unaudited

 

Unaudited

Cash and due from banks

$35,917

 

 

$34,796

 

 

$32,321

 

Federal funds sold

80

 

 

409

 

 

381

 

Total cash and cash equivalents

35,997

 

 

35,205

 

 

32,702

 

Securities available for sale

290,373

 

 

310,305

 

 

308,069

 

Loans, net of unearned income

1,312,685

 

 

1,262,160

 

 

1,142,459

 

Allowance for loan losses

(11,666

)

 

(11,354

)

 

(10,169

)

Loans, net

1,301,019

 

 

1,250,806

 

 

1,132,290

 

Mortgage loans held for sale, net

11,571

 

 

9,990

 

 

31,163

 

Accrued interest receivable

7,246

 

 

8,389

 

 

7,474

 

Premises and equipment, net

21,632

 

 

21,970

 

 

19,955

 

Restricted equity securities, at cost

11,488

 

 

11,499

 

 

11,677

 

Other real estate, net

1,848

 

 

1,000

 

 

2,060

 

Cash surrender value of life insurance contracts

46,068

 

 

45,791

 

 

44,927

 

Deferred tax assets, net

3,133

 

 

4,730

 

 

7,913

 

Goodwill

43,642

 

 

43,642

 

 

43,627

 

Core deposit intangibles

7,745

 

 

7,982

 

 

8,693

 

Other assets

12,486

 

 

10,617

 

 

9,108

 

TOTAL ASSETS

$1,794,248

 

 

$1,761,926

 

 

$1,659,658

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Deposits

 

 

 

 

 

Demand

$225,380

 

 

$220,966

 

 

$225,360

 

Interest-bearing demand

144,265

 

 

144,166

 

 

140,201

 

Savings and money market deposit accounts

368,764

 

 

398,366

 

 

352,724

 

Time

811,871

 

 

747,823

 

 

615,990

 

Total deposits

1,550,280

 

 

1,511,321

 

 

1,334,275

 

Accrued interest payable

967

 

 

990

 

 

801

 

Subordinated debentures

11,644

 

 

11,624

 

 

11,562

 

Federal Home Loan Bank advances

11,119

 

 

15,309

 

 

102,874

 

Dividends payable

1,008

 

 

1,035

 

 

919

 

Other liabilities

5,287

 

 

6,528

 

 

6,887

 

TOTAL LIABILITIES

1,580,305

 

 

1,546,807

 

 

1,457,318

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date

 

 

 

 

 

Common stock, $1 par value; 30,000,000 shares authorized; 11,196,563, 11,502,285, and 11,482,965 shares issued and outstanding at June 30, 2019, March 31, 2019, and June 30, 2018, respectively

11,197

 

 

11,502

 

 

11,483

 

Additional paid-in capital

166,252

 

 

172,886

 

 

172,686

 

Retained earnings

33,349

 

 

30,119

 

 

21,090

 

Accumulated other comprehensive income (loss)

3,145

 

 

612

 

 

(2,919

)

TOTAL STOCKHOLDERS’ EQUITY

213,943

 

 

215,119

 

 

202,340

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$1,794,248

 

 

$1,761,926

 

 

$1,659,658

 

RELIANT BANCORP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE PERIODS INDICATED

(Dollar Amounts in Thousands, Except Per Share Amounts)

(Unaudited)

 

Three Months Ended

 

June 30,

2019

 

March 31,
2019

 

June 30,

2018

INTEREST INCOME

 

 

 

 

 

Interest and fees on loans

$16,960

 

$16,169

 

$14,066

Interest and fees on loans held for sale

198

 

153

 

326

Interest on investment securities, taxable

587

 

503

 

453

Interest on investment securities, nontaxable

1,650

 

1,718

 

1,708

Federal funds sold and other

297

 

300

 

277

 

 

 

 

 

 

TOTAL INTEREST INCOME

19,692

 

18,843

 

16,830

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

 

 

 

 

 

Demand

86

 

111

 

84

Savings and money market

1,051

 

1,130

 

574

Time

4,369

 

3,571

 

2,199

Federal Home Loan Bank advances and other

175

 

377

 

397

Subordinated debentures

198

 

193

 

172

TOTAL INTEREST EXPENSE

5,879

 

5,382

 

3,426

NET INTEREST INCOME

13,813

 

13,461

 

13,404

PROVISION FOR LOAN LOSSES

200

 

 

300

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

13,613

 

13,461

 

13,104

NONINTEREST INCOME

 

 

 

 

 

Service charges on deposit accounts

936

 

884

 

900

Gains on mortgage loans sold, net

1,225

 

560

 

957

Gain on securities transactions, net

175

 

131

 

25

Gain on sale of other real estate

 

 

20

Other

362

 

363

 

352

TOTAL NONINTEREST INCOME

2,698

 

1,938

 

2,254

NONINTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

7,706

 

7,265

 

6,613

Occupancy

1,358

 

1,352

 

1,210

Information technology

1,575

 

1,410

 

1,249

Advertising and public relations

275

 

254

 

141

Audit, legal and consulting

690

 

796

 

816

Federal deposit insurance

249

 

195

 

224

Merger expenses

1

 

2

 

2,483

Other operating

1,272

 

1,472

 

1,305

TOTAL NONINTEREST EXPENSE

13,126

 

12,746

 

14,041

INCOME BEFORE PROVISION FOR INCOME TAXES

3,185

 

2,653

 

1,317

INCOME TAX EXPENSE

501

 

372

 

115

CONSOLIDATED NET INCOME

2,684

 

2,281

 

1,202

NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY

1,555

 

1,543

 

937

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$4,239

 

$3,824

 

$2,139

Basic net income attributable to common shareholders, per share

$0.38

 

$0.34

 

$0.19

Diluted net income attributable to common shareholders, per share

$0.38

 

$0.33

 

$0.19

RELIANT BANCORP, INC.

SEGMENT FINANCIAL INFORMATION

FOR THE PERIODS INDICATED

(Dollar Amounts in Thousands)

(Unaudited)

Core Bank

 

 

 

 

 

 

Three Months Ended

 

June 30,
2019

 

March 31,
2019

 

June 30,
2018

Net interest income

$

13,703

 

 

$

13,373

 

 

$

13,190

 

Provision for loan losses

 

200

 

 

 

 

 

300

 

Noninterest income

 

1,473

 

 

 

1,378

 

 

 

1,299

 

 

Noninterest expense (excluding merger expenses)

 

10,129

 

 

 

10,445

 

 

 

9,389

 

Merger expense

 

1

 

 

 

2

 

 

 

2,483

 

 

Income before provision for income taxes

 

4,846

 

 

 

4,304

 

 

 

2,317

 

Income tax expense

 

607

 

 

 

480

 

 

 

178

 

 

Net income attributable to common shareholders

$

4,239

 

 

$

3,824

 

 

$

2,139

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage Company

 

 

 

 

 

 

Three Months Ended

 

June 30,
2019

 

March 31,
2019

 

June 30,
2018

Net interest income

$

110

 

 

$

88

 

 

$

214

 

Provision for loan losses

 

 

 

 

 

Noninterest income

 

1,225

 

 

 

560

 

 

 

955

 

Noninterest expense

 

2,996

 

 

 

2,299

 

 

 

2,169

 

 

Loss before provision for income taxes

 

(1,661

)

 

 

(1,651

)

 

 

(1,000

)

Income tax benefit

 

(106

)

 

 

(108

)

 

 

(63

)

Net loss

 

(1,555

)

 

 

(1,543

)

 

 

(937

)

 

Noncontrolling interest in net loss of subsidiary

 

1,555

 

 

 

1,543

 

 

 

937

 

 

Net income attributable to common shareholders

$

 

 

$

 

 

$

 

The above financial information is presented, net of intercompany eliminations.

RELIANT BANCORP, INC.

SELECTED QUARTERLY FINANCIAL DATA

AT OR FOR THE STATED THREE MONTHS ENDED

(Dollar Amounts in Thousands, Except Per Share Amounts)

(Unaudited)

 

June 30,
2019

March 31,
2019

June 30,
2018

Per Common Share Data

 

 

 

Net income attributable to shareholders, per share

 

 

 

Basic

$

0.38

 

$

0.34

 

$

0.19

 

Diluted

$

0.38

 

$

0.33

 

$

0.19

 

Book value per common share

$

19.11

 

$

18.70

 

$

17.62

 

Basic weighted average common shares

11,196,898

 

11,405,438

 

11,396,829

 

Diluted weighted average common shares

11,286,627

 

11,487,145

 

11,495,233

 

Common shares outstanding at period end

11,196,563

 

11,502,285

 

11,482,965

 

 

 

 

 

Selected Balance Sheet Data

 

 

 

Loans held for investment

$

1,276,197

 

$

1,238,341

 

$

1,119,884

 

Average earning assets (1)

1,633,903

 

1,590,342

 

1,492,007

 

Total assets

1,773,026

 

1,731,177

 

1,629,714

 

Average stockholders' equity

212,648

 

209,461

 

202,305

 

 

 

 

 

Selected Asset Quality Measures

 

 

 

Nonaccrual loans

$

3,045

 

$

4,582

 

$

4,360

 

90+ days past due still accruing

22

 

566

 

51

 

Total nonperforming loans

3,067

 

5,148

 

4,411

 

Total nonperforming assets (2)

4,915

 

6,148

 

6,471

 

Net charge offs (recoveries)

(112

)

(462

)

(139

)

Nonperforming loans to total loans

0.23

%

0.41

%

0.39

%

Nonperforming assets to total assets

0.27

%

0.35

%

0.39

%

Nonperforming assets to total loans and other real estate

0.37

%

0.49

%

0.57

%

Allowance for loan losses to total loans

0.89

%

0.90

%

0.89

%

Allowance for loan losses to nonperforming loans

380.37

%

220.55

%

230.54

%

Net charge offs (recoveries) to average loans (3)

(0.04

)%

(0.15

)%

(0.05

)%

 

 

 

 

Capital Ratios (Bank Subsidiary Only)(4)

 

 

 

Tier 1 leverage

9.58

%

9.99

%

9.98

%

Common equity tier 1

11.48

%

12.07

%

12.14

%

Total risk-based capital

12.33

%

12.92

%

12.96

%

 

 

 

 

Selected Performance Ratios (3)

 

 

 

Return on average:

 

 

 

Assets

0.96

%

0.88

%

0.53

%

Shareholders' equity

7.97

%

7.30

%

4.23

%

Net interest margin (tax-equivalent basis)

3.57

%

3.63

%

3.74

%

(1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, investment securities and restricted equity securities.

(2) Nonperforming assets consist of nonperforming loans (excluding troubled debt restructurings) and other real estate.

(3) Data has been annualized.

(4) Current quarter capital ratios are estimated.

RELIANT BANCORP, INC.

YIELD TABLES

FOR THE PERIODS INDICATED

(Dollar Amounts in Thousands)

(Unaudited)

The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:

 

Three Months Ended June 30, 2019

 

Three Months Ended March 31, 2019

 

Three Months Ended June 30, 2018

 

Average

Balances

Rates /

Yields

(%)

Interest

Income /

Expense

 

Average

Balances

Rates /

Yields

(%)

Interest

Income /

Expense

 

Average

Balances

Rates /

Yields

(%)

Interest

Income /

Expense

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,276,197

5.18

 

$

16,178

 

$

1,238,341

5.16

 

$

15,463

 

$

1,119,884

4.81

 

$

13,393

Loan fees

0.25

 

782

 

0.23

 

706

 

0.24

 

673

Loans with fees

1,276,197

5.43

 

16,960

 

1,238,341

5.39

 

16,169

 

1,119,884

5.05

 

14,066

Mortgage loans held for sale

14,502

5.48

 

198

 

10,747

5.77

 

153

 

24,611

5.31

 

326

Deposits with banks

30,342

1.53

 

116

 

27,643

1.73

 

118

 

36,550

1.21

 

110

Investment securities - taxable

77,405

3.04

 

587

 

72,464

2.82

 

503

 

67,647

2.69

 

453

Investment securities - tax-exempt

222,149

3.77

 

1,650

 

228,497

3.86

 

1,718

 

231,874

3.75

 

1,708

Federal funds sold and other

13,308

5.46

 

181

 

12,650

5.83

 

182

 

11,441

5.85

 

167

Total earning assets

1,633,903

5.02

 

19,692

 

1,590,342

5.00

 

18,843

 

1,492,007

4.66

 

16,830

Nonearning assets

139,123

 

 

 

140,835

 

 

 

137,707

 

 

Total assets

$

1,773,026

 

 

 

$

1,731,177

 

 

 

$

1,629,714

 

 

Interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

$

141,997

0.24

 

$

86

 

$

148,649

0.30

 

$

111

 

$

143,811

0.23

 

$

84

Savings and money market

374,406

1.13

 

1,051

 

400,328

1.14

 

1,130

 

357,475

0.64

 

574

Time deposits - retail

612,148

2.14

 

3,263

 

577,270

2.05

 

2,921

 

517,209

1.43

 

1,848

Time deposits - wholesale

169,956

2.61

 

1,106

 

106,625

2.47

 

650

 

92,197

1.53

 

351

Total interest bearing deposits

1,298,507

1.70

 

5,506

 

1,232,872

1.58

 

4,812

 

1,110,692

1.03

 

2,857

Federal Home Loan Bank advances

23,668

2.97

 

175

 

56,718

2.70

 

377

 

79,520

2.00

 

397

Subordinated debt

11,634

6.83

 

198

 

11,613

6.74

 

193

 

11,556

5.97

 

172

Total borrowed funds

35,302

4.24

 

373

 

68,331

3.38

 

570

 

91,076

2.51

 

569

Total interest-bearing liabilities

1,333,809

1.77

 

5,879

 

1,301,203

1.68

 

5,382

 

1,201,768

1.14

 

3,426

Net interest rate spread (%) / Net interest income ($)

 

3.25

 

13,813

 

 

3.32

 

13,461

 

 

3.52

 

13,404

Non-interest bearing deposits

218,512

(0.25

)

 

 

211,122

(0.24

)

 

 

219,860

(0.17

)

 

Other non-interest bearing liabilities

8,057

 

 

 

9,391

 

 

 

5,781

 

 

Stockholder's equity

212,648

 

 

 

209,461

 

 

 

202,305

 

 

Total liabilities and stockholders' equity

$

1,773,026

 

 

 

$

1,731,177

 

 

 

$

1,629,714

 

 

Cost of funds

 

1.52

 

 

 

 

1.44

 

 

 

 

0.97

 

 

Net interest margin

 

3.57

 

 

 

 

3.63

 

 

 

 

3.74

 

 

Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis including a state tax credit included in loan yields of $300, $300, and $25, respectively, for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.

 

RELIANT BANCORP, INC.

NON-GAAP FINANCIAL MEASURES

FOR THE PERIODS INDICATED

(Dollar Amounts in Thousands, Except Per Share Amounts)

(Unaudited)

 

Three Months Ended

 

June 30,

2019

 

March 31,
2019

 

June 30,

2018

NON-GAAP FINANCIAL MEASURES

 

 

 

 

 

Adjusted net interest margin (1)

 

 

 

 

 

Tax equivalent net interest income (1)(2)

$

14,555

 

 

$

14,221

 

 

$

13,404

 

Purchase accounting adjustments

(448

)

 

(332

)

 

(326

)

Tax credits

(300

)

 

(300

)

 

(25

)

Adjusted net interest income

$

13,807

 

 

$

13,589

 

 

$

13,053

 

Adjusted net interest margin

3.39

%

 

3.47

%

 

3.65

%

 

 

 

 

 

 

Adjusted net income attributable to common shareholders and related impact (1)

 

 

 

 

 

Net income attributable to common shareholders

$

4,239

 

 

$

3,824

 

 

$

2,139

 

Purchase accounting adjustments

(195

)

 

(79

)

 

(73

)

Merger expenses

1

 

 

2

 

 

2,483

 

Pre-tax adjustments to net income

(194

)

 

(77

)

 

2,410

 

Tax effect of adjustments to net income

(51

)

 

(21

)

 

632

 

After tax adjustments to net income

$

(143

)

 

$

(56

)

 

$

1,778

 

Adjusted net income attributable to common shareholders

$

4,096

 

 

$

3,768

 

 

$

3,917

 

Adjusted return on average assets

0.92

%

 

0.87

%

 

0.96

%

Adjusted return on average stockholders' equity

7.70

%

 

7.20

%

 

7.74

%

Adjusted net income attributable to common shareholders, per diluted share

$

0.36

 

 

$

0.33

 

 

$

0.34

 

 

 

 

 

 

 

Average tangible stockholders' equity: (1)

 

 

 

 

 

Average stockholders' equity

$

212,648

 

 

$

209,461

 

 

$

202,305

 

Less: average goodwill

43,642

 

 

43,642

 

 

43,467

 

Less: average core deposit intangibles

7,834

 

 

8,071

 

 

8,780

 

Net average tangible common equity

$

161,172

 

 

$

157,748

 

 

$

150,058

 

 

 

 

 

 

 

Return on average: (1)(3)

 

 

 

 

 

Tangible common equity (ROATCE)

10.52

%

 

9.70

%

 

5.70

%

Adjusted ROATCE

10.17

%

 

9.55

%

 

10.44

%

(1) Not a recognized measure under generally accepted accounting principles (GAAP).

(2) Amount includes tax equivalent adjustment to quantify the tax equivalent net interest income.

(3) Data has been annualized.

RELIANT BANCORP, INC.

NON-GAAP FINANCIAL MEASURES

FOR THE PERIODS INDICATED

(Dollar Amounts in Thousands, Except Per Share Amounts)

(Unaudited)

 

Three Months Ended

 

June 30,

2019

 

March 31,
2019

 

June 30,

2018

Tangible assets: (1)

 

 

 

 

 

Total assets

$

1,794,248

 

 

$

1,761,926

 

 

$

1,659,658

 

Less: goodwill

43,642

 

 

43,642

 

 

43,627

 

Less: core deposit intangibles

7,745

 

 

7,982

 

 

8,693

 

Net tangible assets

$

1,742,861

 

 

$

1,710,302

 

 

$

1,607,338

 

 

 

 

 

 

 

Tangible equity: (1)

 

 

 

 

 

Total stockholders' equity

$

213,943

 

 

$

215,119

 

 

$

202,340

 

Less: goodwill

43,642

 

 

43,642

 

 

43,627

 

Less: core deposit intangibles

7,745

 

 

7,982

 

 

8,693

 

Net tangible common equity

$

162,556

 

 

$

163,495

 

 

$

150,020

 

 

 

 

 

 

 

Ratio of tangible common equity to tangible assets

9.33

%

 

9.56

%

 

9.33

%

 

 

 

 

 

 

Tangible book value per common share (TBVPS): (1)

 

 

 

 

 

Net tangible equity

$

162,556

 

 

$

163,495

 

 

$

150,020

 

Common shares outstanding

11,196,563

 

 

11,502,285

 

 

11,482,965

 

 

 

 

 

 

 

TBVPS

$

14.52

 

 

$

14.21

 

 

$

13.06

 

 

 

 

 

 

 

Efficiency ratio (core bank segment only excluding mortgage segment)(1)

 

 

 

 

 

Non-interest expense

$

10,129

 

 

$

10,445

 

 

$

9,389

 

 

 

 

 

 

 

Net interest income

13,703

 

 

13,373

 

 

13,190

 

Tax equivalent adjustment for tax exempt

 

 

 

 

 

interest income

742

 

 

760

 

 

490

 

Non-interest income

1,473

 

 

1,378

 

 

1,299

 

Less gain on sale of other real estate

 

 

 

 

(20

)

Less gain on sale of securities

(175

)

 

(131

)

 

(25

)

Adjusted operating income

$

15,743

 

 

$

15,380

 

 

$

14,934

 

Efficiency Ratio

64.34

%

 

67.91

%

 

62.87

%

 

 

 

 

 

 

Adjusted loan loss reserve: (1)

 

 

 

 

 

Allowance for loan losses

$

11,666

 

 

$

11,354

 

 

$

10,169

 

Purchase loan discounts

3,688

 

 

4,117

 

 

6,127

 

Loan loss reserve and purchase loan discounts

$

15,354

 

 

$

15,471

 

 

$

16,296

 

 

 

 

 

 

 

Allowance for loan losses and purchase loan discounts to total loans

1.17

%

 

1.23

%

 

1.43

%

(1) Not a recognized measure under generally accepted accounting principles (GAAP).

 

Contacts

DeVan Ard, Jr., Chairman, President and CEO, Reliant Bancorp, Inc. (615.221.2020)

$Cashtags

Contacts

DeVan Ard, Jr., Chairman, President and CEO, Reliant Bancorp, Inc. (615.221.2020)