Franklin Financial Network Reports 2019 Third Quarter Results

Strategic Balance Sheet Actions Continue to Unlock Value of Core Bank

Net Interest Margin 2.98%, 14 Basis Points Expansion from Previous Quarter

Earnings per Diluted Common Share of $0.75

Announced Dividend Increase of 50% to $0.06 per Common Share

FRANKLIN, Tenn.--()--Franklin Financial Network, Inc. (the "Company") (NYSE: FSB), parent company of Franklin Synergy Bank, reported net income of $11.3 million, or $0.75 per diluted common share, for the quarter-ended September 30, 2019, compared to $10.5 million, or $0.70 per diluted common share, for the quarter-ended September 30, 2018.

Pre-tax pre-provision profit was $14.4 million, representing an annualized increase of 46.8% from the second quarter of 2019 and a 22.9% increase from the third quarter of 2018. Core net income for the quarter-ended September 30, 2019 was $10.9 million, or $0.72 per diluted common share, compared to $10.5 million, or $0.70 per diluted common share, for the quarter-ended September 30, 2018.

Chief Executive Officer, J. Myers Jones, III, stated, "Our Company’s strength continues to be our team, from our originators, to our front-line branch folks and our support group, and I could not be more proud of the attitude and excellence they show each and every day. Their efforts drive the execution of our strategic balance sheet actions that continue to unlock our core Bank’s value, demonstrated this quarter by our improved financial performance and focused deleveraging of non-core assets and liabilities.”

Jones continued, “Accordingly, our focus on enhancing the strength of our core balance sheet drove an $87 million reduction in our Shared National Credit (SNC) portfolio, which now stands near 5% of loans held for investment (HFI). Similarly, brokered deposit balances decreased by $109 million and retail deposits increased by $226 million during the quarter. We remain completely focused on core customer deposit and loan initiatives and are highly engaged in the execution of our strategic plan, with particular emphasis on balancing profitability and growth.”

Key Highlights and Recent Developments

  • Net interest margin (tax-equivalent basis) improved to 2.98%, an expansion of 14 basis points from last quarter and 28 basis points year-over-year
  • SNC reduction of $86.7 million to $144.5 million, or 5.2% of loans HFI, which stands at the lowest concentration of loans HFI since the second quarter of 2018
  • Continued optimization and deleveraging of non-core balance sheet with $221.7 million securities reduction to 16.0% of total assets; securities have been reduced by $707.4 million since September 30, 2018 when securities represented 31.7% of total assets
  • Retail & other deposit growth of $225.8 million, or 58.5% annualized and 14.5% year-over-year; reduction of $109.7 million in brokered deposits, or 33.6% year-over-year
  • Tangible book value per share of $26.61, up 15.5% annualized and 14.8% year-over-year

Performance Summary

 

 

Reported GAAP Results

 

Non-GAAP "Core" Results(1)

 

(dollars in thousands, except share data and %)

 

3Q 2019

 

 

2Q 2019

 

 

3Q 2018

 

 

3Q 2019

 

 

2Q 2019

 

 

3Q 2018

 

Net Interest Income

 

$

28,262

 

 

$

27,365

 

 

$

26,562

 

 

$

28,262

 

 

$

27,365

 

 

$

26,562

 

Net Interest Margin (FTE)(2)

 

 

2.98

%

 

 

2.84

%

 

 

2.70

%

 

 

2.98

%

 

 

2.84

%

 

 

2.70

%

Provision for Loan Losses

 

$

1,000

 

 

$

7,031

 

 

$

136

 

 

$

1,000

 

 

$

7,031

 

 

$

136

 

Net Charge-offs / Average Loans

 

 

0.27

%

 

 

1.04

%

 

 

0.00

%

 

 

0.27

%

 

 

1.04

%

 

 

0.00

%

Noninterest Income

 

$

4,793

 

 

$

4,923

 

 

$

3,442

 

 

$

5,065

 

 

$

4,923

 

 

$

3,442

 

Noninterest Expense

 

$

18,614

 

 

$

19,370

 

 

$

18,251

 

 

$

19,371

 

 

$

19,370

 

 

$

18,251

 

Efficiency Ratio

 

 

56.3

%

 

 

60.0

%

 

 

60.8

%

 

 

58.1

%

 

 

60.0

%

 

 

60.8

%

Pre-tax Income

 

$

13,441

 

 

$

5,887

 

 

$

11,617

 

 

$

12,956

 

 

$

5,887

 

 

$

11,617

 

Net Income available to common shareholders

 

$

11,324

 

 

$

5,173

 

 

$

10,549

 

 

$

10,926

 

 

$

5,173

 

 

$

10,549

 

Pre-tax pre-provision profit

 

$

14,441

 

 

$

12,918

 

 

$

11,753

 

 

$

13,956

 

 

$

12,918

 

 

$

11,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.75

 

 

$

0.34

 

 

$

0.70

 

 

$

0.72

 

 

$

0.34

 

 

$

0.70

 

Effective Tax Rate

 

 

15.8

%

 

 

12.0

%

 

 

9.2

%

 

 

15.7

%

 

 

12.0

%

 

 

9.2

%

Weighted Average Diluted Shares

 

 

14,991,363

 

 

 

14,894,140

 

 

 

14,903,751

 

 

 

14,991,363

 

 

 

14,894,140

 

 

 

14,903,751

 

Actual Shares Outstanding

 

 

14,636,484

 

 

 

14,628,287

 

 

 

14,525,351

 

 

 

14,636,484

 

 

 

14,628,287

 

 

 

14,525,351

 

Return on Average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

1.12

%

 

 

0.51

%

 

 

1.01

%

 

 

1.08

%

 

 

0.51

%

 

 

1.01

%

Equity

 

 

11.3

%

 

 

5.3

%

 

 

11.9

%

 

 

10.9

%

 

 

5.3

%

 

 

11.9

%

Tangible Common Equity

 

 

11.8

%

 

 

5.6

%

 

 

12.6

%

 

 

11.4

%

 

 

5.6

%

 

 

12.6

%

(1)

Non-GAAP financial measures that adjust GAAP reported net income and other metrics for certain income and expense items. Excludes 3Q’19 nonrecurring Federal Deposit Insurance Corporation (FDIC) assessment credit of $757, gain on sales of securities of $1,493, and loss on sales of loans of $1,765. See "GAAP reconciliation and use of non-GAAP financial measures" below for a discussion and reconciliation of non-GAAP financial measures.

(2)

Interest income and rates include the effects of tax-equivalent adjustments to adjust tax-exempt interest income on tax-exempt loans and investment securities to a fully taxable basis (FTE).

Continued Focus on Reducing Non-Core Assets and Liabilities

Driven by the expected reduction in SNCs and anticipated construction loan paydowns, loans HFI decreased $84.2 million from the second quarter of 2019, or 11.6% annualized, and increased $246.1 million year-over-year, or 9.7%. Non-SNC-related loan growth was $2.5 million, or 0.4% annualized from the second quarter of 2019.

Total deposits decreased by $84.7 million, or 10.7% annualized from the second quarter of 2019 and by $309.6 million, or 9.2% from the third quarter of 2018, reflecting a deliberate reduction in non-core deposits as a part of the Company's continued balance sheet optimization. As a part of this effort, brokered deposits decreased $109.7 million from the second quarter of 2019, an annualized decline of 62.3%, and reciprocal deposits decreased by $70.1 million, to $366.4 million, or 63.8% annualized, while during the same time period, retail and other deposits grew $225.8 million, or 58.5% annualized and 14.5% year-over-year.

Largely as a result of the deliberate reduction in non-core funding and securities, net interest income increased to $28.3 million for the third quarter of 2019, or 13.0% annualized, compared to the second quarter of 2019, and increased $1.7 million compared to the third quarter of 2018, representing a 6.4% year-over-year increase.

Executive Vice President and Chief Financial Officer, Christopher J. Black stated, "While these strategic shifts in our operating model will take time to fully reflect themselves in our core profitability metrics, our organizational realignment and funding-driven profitability processes are producing positive results in these early stages. We are pleased with the positive impact to both net interest income and net interest margin demonstrated this quarter, which was driven by the reduction in non-core assets and liabilities, as well as positive loan and deposit pricing dynamics.”

Balance Sheet Deleverage Strategy Drives Margin Expansion; SNC Portfolio Reduction Continues

Net interest margin (tax-equivalent basis) was 2.98% for the three months ended September 30, 2019, a 14 basis point increase quarter-over-quarter, and a 28 basis point increase year-over-year, primarily driven by balance sheet rotation and optimization strategies that have focused on the reduction in non-core assets and liabilities.

The Company reduced its SNC loan portfolio by $86.7 million in the third quarter of 2019, to $144.5 million. This reduction in the SNC portfolio represents an 11.1% year-over-year decrease and is the lowest SNC balance held by the Company during the last five quarters, representing 5.2% of loans HFI, which is almost half of the Company’s concentration of 9.3% of loans HFI at the peak of the SNC portfolio at December 31, 2018.

Illustrating further progress, the Company has reduced its securities portfolio by a total of $539.9 million through the first nine months of 2019. This has been accomplished through a combination of rotating lower-yielding securities into higher-yielding assets and selling lower-yielding securities that had been funded by non-core liabilities. As a result of this effort to reduce reliance upon non-core funding sources, securities represent 16.0% of total assets at September 30, 2019, down from 31.7% at September 30, 2018. As the Company has effectively rotated and optimized its balance sheet, loans HFI increased to 91.3% of total deposits at September 30, 2019, up from 77.7% and 75.6% at December 31, 2018, and September 30, 2018, respectively.

Black stated, “The inversion of the yield curve provided us with the opportunity to further deleverage the balance sheet of non-core assets and liabilities. This was done through an additional reduction of the securities portfolio and the concurrent decision to continue to shrink various components of non-core funding. Despite inherent market-driven margin pressure in this yield curve environment, our deleveraging strategy was a key driver in this quarter’s net interest margin expansion.”

Black continued, “Reflective of our focus on growing deeper core customer relationships, we were able to reduce our SNC portfolio to 5.2% of loans HFI, with expectations for further reductions in the coming quarters.”

Core Noninterest Income Increases

Total noninterest income was $4.8 million, $4.9 million for the third and second quarters of 2019, respectively, and $3.4 million for the third quarter of 2018. After non-core adjustments, core noninterest income was $5.1 million for the third quarter of 2019, an increase of 11.4% annualized from the second quarter of 2019, or 47.2% on a year-over-year basis.

Core Noninterest Expenses Held In Check

Noninterest expense was $18.6 million and $19.4 million during the third and second quarters of 2019, respectively. When adjusted for a nonrecurring FDIC assessment credit during the third quarter of 2019, core noninterest expense was $19.4 million, a 6.1% year-over-year increase when compared to the third quarter of 2018 expense of $18.3 million.

Asset Quality

As disclosed previously, the Company had allocated a specific reserve for a single SNC relationship in the amount of approximately $2.2 million, which then represented the total remaining relationship balance. During the third quarter of 2019, the Company determined that, excluding a principal repayment of approximately $500 thousand, the balance of this relationship should be charged-off, resulting in the recognition of a charge-off of approximately $1.7 million. Given that the specific reserve had been established during the second quarter of 2019, there is no further potential negative financial impact related to this relationship.

The allowance for loan and lease losses (ALLL) was $26.5 million at September 30, 2019, representing an increase of $3.0 million from $23.5 million at December 31, 2018, resulting from an uptick in, and developments relating to, our classified assets. The allowance for loan and lease losses equates to 0.95% of total loans HFI at September 30, 2019. The Company reported no bank-owned real estate (OREO) at September 30, 2019.

As of September 30, 2019, the Company’s total non-performing assets (NPA) were 0.08% of assets, or $3.1 million, a decrease of approximately $2.6 million from December 31, 2018. The NPA/ALLL coverage ratio was 852% at September 30, 2019, more than double the 415% coverage present at December 31, 2018. Classified Assets were $49.4 million at September 30, 2019, representing 1.77% of loans HFI, up from 1.45% of loans HFI at December 31, 2018.

Strong Capital to Support Future Growth and Expansion

The ratio of tangible common equity to tangible assets was 10.2% at September 30, 2019, compared with 9.2% and 8.1% at June 30, 2019, and September 30, 2018, respectively. The Company's tangible book value per share increased to $26.61, which represents a 15.5% annualized quarterly increase and 14.8% year-over-year growth.

Black commented, “As we continue to strengthen our balance sheet, our tangible book value growth clearly demonstrates one of our Company’s strengths that has been consistent throughout our time as a public company. Given our strong capital position, we expect to continue to return capital to shareholders through repurchases, along with a newly-authorized 50% increase in our established quarterly dividend to $0.06 per share.”

Summary

Jones concluded, “As we move towards the end of 2019, I am happy with the progress that we have made thus far in the execution of our balance sheet optimization and strategic plan. Our team remains optimistic about the future and the tremendous opportunities we have to grow and enhance our relationships with our customers, community, teammates and shareholders. We remain committed to our core values of integrity, accountability, excellence and reliability. Underlying our quarterly financial results is a strong foundation that we firmly believe has our Company well-positioned for the future, which we are confident will be guided by our strong, unified leadership team."

WEBCAST AND CONFERENCE CALL INFORMATION

The live broadcast of the Company's earnings webcast and conference call will begin at 8:00 a.m. CDT on Thursday, October 24, 2019, and the presentation and conference call will be broadcast live over the Internet at http://www.snl.com/IRW/CorporateProfile/4185772. This Earnings Release and the Earnings Presentation will be available for twelve months, and are also included on a Form 8-K that the Company furnished to the U.S. Securities and Exchange Commission (SEC) on October 23, 2019. To access the call for audio only, please call 1-844-378-6480 which will be available for 90 days.

ABOUT THE COMPANY

Franklin Financial Network, Inc. (NYSE: FSB) is a financial holding company headquartered in Franklin, Tennessee. The Company's wholly owned bank subsidiary, Franklin Synergy Bank, a Tennessee-chartered commercial bank founded in November 2007 and a member of the Federal Reserve System, provides a full range of banking and related financial services with a focus on service to small businesses, corporate entities, local governments and individuals. With consolidated total assets of $3.8 billion at September 30, 2019, the Bank currently operates through 15 branches in the growing Williamson, Rutherford and Davidson Counties, all within the Nashville metropolitan statistical area. Additional information about the Company, which is included in the NYSE Financial-100 Index, the FTSE Russell 2000 Index and the S&P SmallCap 600 Index, is available at www.FranklinSynergyBank.com.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This Earnings Release contains forward-looking statements regarding, among other things, our anticipated financial and operating results and our plans regarding future share repurchases, payment of quarterly dividends, and reduction in our SNC portfolio. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our management's current assumptions, beliefs, and expectations. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "objective," "should," "hope," "pursue," "seek," and similar expressions are intended to identify forward-looking statements. While we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations will prove correct. Forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the future results, performance, or achievements expressed in or implied by any forward-looking statement we make. Some of the relevant risks and uncertainties that could cause our actual performance to differ materially from the forward-looking statements contained in this Earnings Release are discussed below and under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 19, 2019. We caution readers that these discussions of important risks and uncertainties are not exclusive, and our business may be subject to other risks and uncertainties which are not detailed there. Readers are cautioned not to place undue reliance on our forward-looking statements. We make forward-looking statements as of the date on which this Earnings Release is filed with the SEC, and we assume no obligation to update the forward-looking statements after the date hereof whether as a result of new information or events, changed circumstances, or otherwise, except as required by law.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

  • business and economic conditions nationally, regionally and in our target markets, particularly in Middle Tennessee and the geographic areas in which we operate;
  • the concentration of our loan portfolio in real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate;
  • the concentration of our business within our geographic areas of operation in Middle Tennessee;
  • credit and lending risks associated with our commercial real estate, residential real estate, commercial and industrial, and construction and land development portfolios;
  • increased competition in the banking and mortgage banking industry, nationally, regionally and locally;
  • our ability to execute our business strategy to achieve profitable growth;
  • the dependence of our operating model on our ability to attract and retain experienced and talented bankers in each of our markets;
  • risks that our cost of funding could increase, in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits;
  • our ability to increase our operating efficiency;
  • failure to keep pace with technological change or difficulties when implementing new technologies;
  • risks related to our acquisition, disposition, growth and other strategic opportunities and initiatives;
  • negative impact on our mortgage banking services, including declines in our mortgage originations or profitability due to rising interest rates and increased competition and regulation;
  • our ability to attract and maintain business banking relationships with well-qualified businesses, real estate developers and investors with proven track records in our market areas;
  • our ability to attract sufficient loans that meet prudent credit standards, including in our commercial and industrial and commercial real estate loan categories;
  • failure to maintain adequate liquidity and regulatory capital and comply with evolving federal and state banking regulations;
  • inability of our risk management framework to effectively mitigate credit risk, interest rate risk, liquidity risk, price risk, compliance risk, operational risk, strategic risk and reputational risk;
  • failure to develop new, and grow our existing, streams of noninterest income;
  • our ability to maintain expenses in line with our current projections;
  • our dependence on our management team and our ability to motivate and retain our management team;
  • risks related to management transition;
  • risks related to any future acquisitions, including failure to realize anticipated benefits from future acquisitions;
  • inability to find acquisition candidates that will be accretive to our financial condition and results of operations;
  • system failures, data security breaches (including as a result of cyber-attacks), or failures to prevent breaches of our network security;
  • data processing system failures and errors;
  • fraudulent and negligent acts by individuals and entities that are beyond our control;
  • fluctuations in market value and its impact on the securities held in our securities portfolio;
  • the adequacy of our reserves (including allowance for loan losses) and the appropriateness of our methodology for calculating such reserves;
  • the makeup of our asset mix and investments;
  • our focus on small and mid-sized businesses;
  • an inability to raise necessary capital to fund our growth strategy or operations, or to meet increased minimum regulatory capital levels;
  • the sufficiency of our capital, including sources of such capital and the extent to which capital may be used or required;
  • interest rate shifts and its impact on our financial condition and results of operation;
  • the expenses that we incur to operate as a public company;
  • the institution and outcome of litigation and other legal proceedings against us or to which we become subject;
  • changes in accounting standards;
  • the impact of recent and future legislative and regulatory changes;
  • governmental monetary and fiscal policies;
  • changes in the scope and cost of Federal Deposit Insurance Corporation, or FDIC, insurance and other coverage; and
  • future equity issuances under our Amended and Restated 2017 Omnibus Equity Incentive Plan and future sales of our common stock by us or our executive officers or directors.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K filed March 19, 2019 with the SEC and our Quarterly Reports on Form 10-Q filed May 9, 2019 and August 6, 2019 with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from our forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect the Company.

GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES

Some of the financial data included in this earnings release and our selected historical consolidated financial information are not measures of financial performance recognized by GAAP. Our management uses these non-GAAP financial measures in its analysis of our performance:

  • "Common equity" is defined as total shareholders' equity at end of period less the liquidation preference value of the preferred stock;
  • "Tangible common equity" is common equity less goodwill and other intangible assets;
  • "Total tangible assets" is defined as total assets less goodwill and other intangible assets;
  • "Other intangible assets" is defined as the sum of core deposit intangible assets and SBA servicing rights;
  • "Tangible book value per share" is defined as tangible common equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets;
  • "Tangible common equity ratio" is defined as the ratio of tangible common equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets;
  • "Core Return on Average Tangible Common Equity" is defined as annualized core net income available to common shareholders divided by average tangible common equity;
  • "Core Efficiency Ratio" is defined as noninterest expense divided by our operating revenue, which is equal to net interest income plus noninterest income with all adjusted to certain one-time expenses;
  • "Core Diluted Earnings Per Share" is defined as reported earnings per share adjusted for certain one-time expenses;
  • "Core NonInterest Income" is defined as noninterest income adjusted for certain one-time items;
  • "Core NonInterest Expense" is defined as noninterest expense adjusted for certain one-time items;
  • "Core Compensation Expense" is defined as compensation expense adjusted for certain one-time items;
  • "Core Net Income" is defined as "Net Income Available to Common Shareholders" adjusted for certain one-time items;
  • "Pre-tax core net income" is defined as pre-tax net income adjusted for certain one-time noninterest income and noninterest expense items; and
  • "Pre-tax pre-provision core profit" is defined as pre-tax core net income and provision for loan losses.

We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use.

Financial Summary and Key Metrics

(Unaudited)

(In Thousands, Except Share Data and %)

 

 

2019

 

 

 

2018

 

 

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

 

 

 

Fourth

Quarter

 

 

Third

Quarter

Statement of Income Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

46,531

 

 

 

$

47,453

 

 

 

$

47,523

 

 

 

$

46,046

 

 

 

$

43,717

 

 

Total interest expense

 

 

18,269

 

 

 

 

20,088

 

 

 

 

20,103

 

 

 

 

19,125

 

 

 

 

17,155

 

 

Net interest income

 

 

28,262

 

 

 

 

27,365

 

 

 

 

27,420

 

 

 

 

26,921

 

 

 

 

26,562

 

 

Provision for loan losses

 

 

1,000

 

 

 

 

7,031

 

 

 

 

5,055

 

 

 

 

975

 

 

 

 

136

 

 

Total noninterest income

 

 

4,793

 

 

 

 

4,923

 

 

 

 

3,486

 

 

 

 

(384

)

 

 

 

3,442

 

 

Total noninterest expense

 

 

18,614

 

 

 

 

19,370

 

 

 

 

22,616

 

 

 

 

21,689

 

 

 

 

18,251

 

 

Net income before income taxes

 

 

13,441

 

 

 

 

5,887

 

 

 

 

3,235

 

 

 

 

3,873

 

 

 

 

11,617

 

 

Income tax expense

 

 

2,117

 

 

 

 

706

 

 

 

 

334

 

 

 

 

122

 

 

 

 

1,068

 

 

Net income available to common shareholders (a)

 

$

11,324

 

 

 

$

5,173

 

 

 

$

2,901

 

 

 

$

3,743

 

 

 

$

10,549

 

 

Pre-tax pre-provision profit

 

$

14,441

 

 

 

$

12,918

 

 

 

$

8,290

 

 

 

$

4,848

 

 

 

$

11,753

 

 

Net interest income (tax-equivalent basis)

 

$

28,809

 

 

 

$

27,921

 

 

 

$

27,955

 

 

 

$

27,516

 

 

 

$

27,263

 

 

Core net income* (a)

 

$

10,926

 

 

 

$

5,173

 

 

 

$

6,103

 

 

 

$

9,178

 

 

 

$

10,549

 

 

Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income

 

$

0.75

 

 

 

$

0.34

 

 

 

$

0.19

 

 

 

$

0.25

 

 

 

$

0.70

 

 

Core diluted net income *

 

 

0.72

 

 

 

 

0.34

 

 

 

 

0.41

 

 

 

 

0.61

 

 

 

 

0.70

 

 

Book value

 

 

27.89

 

 

 

 

26.90

 

 

 

 

26.31

 

 

 

 

25.64

 

 

 

 

24.51

 

 

Tangible book value*

 

 

26.61

 

 

 

 

25.61

 

 

 

 

25.00

 

 

 

 

24.32

 

 

 

 

23.18

 

 

Weighted average number of shares-diluted

 

 

14,991,363

 

 

 

 

14,894,140

 

 

 

 

14,804,830

 

 

 

 

14,821,540

 

 

 

 

14,903,751

 

 

Period-end number of shares

 

 

14,636,484

 

 

 

 

14,628,287

 

 

 

 

14,574,339

 

 

 

 

14,538,085

 

 

 

 

14,525,351

 

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

178,747

 

 

 

$

150,721

 

 

 

$

300,113

 

 

 

$

280,212

 

 

 

$

144,660

 

 

Securities available-for-sale, at fair value

 

 

612,371

 

 

 

 

715,132

 

 

 

 

799,301

 

 

 

 

1,030,668

 

 

 

 

1,115,187

 

 

Securities held to maturity

 

 

-

 

 

 

 

118,963

 

 

 

 

118,831

 

 

 

 

121,617

 

 

 

 

204,587

 

 

Loans held for sale, at fair value

 

 

56,570

 

 

 

 

27,093

 

 

 

 

21,730

 

 

 

 

11,103

 

 

 

 

14,563

 

 

Loans held for investment

 

 

2,796,233

 

 

 

 

2,880,433

 

 

 

 

2,807,377

 

 

 

 

2,665,399

 

 

 

 

2,550,121

 

 

Allowance for loan losses

 

 

(26,474

)

 

 

 

(27,443

)

 

 

 

(27,857

)

 

 

 

(23,451

)

 

 

 

(22,479

)

 

Other real estate owned, net

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,853

 

 

Total assets

 

 

3,818,324

 

 

 

 

4,071,971

 

 

 

 

4,238,436

 

 

 

 

4,249,439

 

 

 

 

4,167,813

 

 

Retail and other deposits

 

 

1,756,558

 

 

 

 

1,530,722

 

 

 

 

1,532,984

 

 

 

 

1,538,441

 

 

 

 

1,534,014

 

 

Local Government deposits

 

 

349,535

 

 

 

 

480,206

 

 

 

 

628,985

 

 

 

 

782,889

 

 

 

 

833,052

 

 

Brokered deposits

 

 

589,482

 

 

 

 

699,195

 

 

 

 

718,683

 

 

 

 

797,795

 

 

 

 

887,112

 

 

Reciprocal deposits

 

 

366,375

 

 

 

 

436,522

 

 

 

 

435,191

 

 

 

 

312,682

 

 

 

 

117,372

 

 

Total deposits

 

 

3,061,950

 

 

 

 

3,146,645

 

 

 

 

3,315,843

 

 

 

 

3,431,807

 

 

 

 

3,371,550

 

 

Borrowings

 

 

278,827

 

 

 

 

455,282

 

 

 

 

475,238

 

 

 

 

427,193

 

 

 

 

430,149

 

 

Total shareholders' equity

 

 

408,168

 

 

 

 

393,516

 

 

 

 

383,421

 

 

 

 

372,740

 

 

 

 

356,074

 

 

Total equity

 

 

408,261

 

 

 

 

393,609

 

 

 

 

383,514

 

 

 

 

372,833

 

 

 

 

356,177

 

 

Selected Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

1.12

 

%

 

 

0.51

 

%

 

 

0.28

 

%

 

 

0.35

 

%

 

 

1.01

 

%

Shareholders' equity

 

 

11.3

 

%

 

 

5.3

 

%

 

 

3.1

 

%

 

 

4.1

 

%

 

 

11.9

 

%

Tangible common equity*

 

 

11.8

 

%

 

 

5.6

 

%

 

 

3.3

 

%

 

 

4.3

 

%

 

 

12.6

 

%

Average shareholders' equity to average assets

 

 

10.0

 

%

 

 

9.5

 

%

 

 

8.9

 

%

 

 

8.6

 

%

 

 

8.5

 

%

Net interest margin (NIM) (tax-equivalent basis)

 

 

2.98

 

%

 

 

2.84

 

%

 

 

2.80

 

%

 

 

2.69

 

%

 

 

2.70

 

%

Efficiency ratio (GAAP)

 

 

56.3

 

%

 

 

60.0

 

%

 

 

73.2

 

%

 

 

81.7

 

%

 

 

60.8

 

%

Core efficiency ratio (tax-equivalent basis)*

 

 

58.1

 

%

 

 

60.0

 

%

 

 

59.8

 

%

 

 

60.4

 

%

 

 

60.8

 

%

Loans held for investment to deposit ratio

 

 

91.3

 

%

 

 

91.5

 

%

 

 

84.7

 

%

 

 

77.7

 

%

 

 

75.6

 

%

Total loans to deposit ratio

 

 

93.2

 

%

 

 

92.4

 

%

 

 

85.3

 

%

 

 

78.0

 

%

 

 

76.1

 

%

Yield on interest-earning assets

 

 

4.87

 

%

 

 

4.89

 

%

 

 

4.82

 

%

 

 

4.56

 

%

 

 

4.40

 

%

Cost of interest-bearing liabilities

 

 

2.26

 

%

 

 

2.41

 

%

 

 

2.34

 

%

 

 

2.16

 

%

 

 

1.97

 

%

Cost of total deposits

 

 

1.91

 

%

 

 

2.07

 

%

 

 

2.06

 

%

 

 

1.88

 

%

 

 

1.68

 

%

Credit Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of loans held for investment

 

 

0.95

 

%

 

 

0.95

 

%

 

 

0.99

 

%

 

 

0.88

 

%

 

 

0.88

 

%

Net charge-offs (recoveries) as a percentage of average loans held for investment(b)

 

 

0.27

 

%

 

 

1.04

 

%

 

 

0.00

 

%

 

 

0.00

 

%

 

 

0.00

 

%

Nonperforming loans held for investment as a percentage of total loans held for investments

 

 

0.11

 

%

 

 

0.16

 

%

 

 

0.42

 

%

 

 

0.21

 

%

 

 

0.16

 

%

Nonperforming assets as a percentage of total assets

 

 

0.08

 

%

 

 

0.12

 

%

 

 

0.28

 

%

 

 

0.13

 

%

 

 

0.14

 

%

Preliminary capital ratios (Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity to assets

 

 

10.7

 

%

 

 

9.7

 

%

 

 

9.0

 

%

 

 

8.8

 

%

 

 

8.5

 

%

Tangible common equity to tangible assets*

 

 

10.2

 

%

 

 

9.2

 

%

 

 

8.6

 

%

 

 

8.4

 

%

 

 

8.1

 

%

Tier 1 capital (to average assets)

 

 

9.8

 

%

 

 

9.2

 

%

 

 

8.8

 

%

 

 

8.8

 

%

 

 

8.7

 

%

Tier 1 capital (to risk-weighted assets)

 

 

12.0

 

%

 

 

11.2

 

%

 

 

11.3

 

%

 

 

12.2

 

%

 

 

12.2

 

%

Total capital (to risk-weighted assets)

 

 

14.7

 

%

 

 

13.7

 

%

 

 

14.0

 

%

 

 

12.4

 

%

 

 

15.0

 

%

Common Equity Tier 1 (to risk-weighted assets) (CET1)

 

 

12.0

 

%

 

 

11.2

 

%

 

11.3

 

%

 

12.2

 

%

 

12.2

 

%

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these Non-GAAP measures.

(a) - Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the second and fourth quarters.

(b) - annualized

Consolidated Statements of Income

(Unaudited)

(In Thousands, Except Share Data and %)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2019

 

Q3 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

vs.

 

vs.

 

 

2019

 

 

2018

 

 

Q2 2019

Percent

 

Q3 2018

Percent

 

 

Third Quarter

 

 

Second Quarter

 

 

First Quarter

 

 

Fourth Quarter

 

 

Third Quarter

 

 

Variance

 

Variance

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

 

40,118

 

 

$

 

40,202

 

 

$

 

38,338

 

 

$

 

36,314

 

 

$

 

34,435

 

 

 

(0.2

)

%

 

 

16.5

 

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

 

3,815

 

 

 

 

4,614

 

 

 

 

6,394

 

 

 

 

7,058

 

 

 

 

6,460

 

 

 

(17.3

)

%

 

 

(40.9

)

%

Tax-exempt

 

 

 

1,471

 

 

 

 

1,410

 

 

 

 

1,470

 

 

 

 

1,615

 

 

 

 

1,926

 

 

 

4.3

 

%

 

 

(23.6

)

%

Dividends on restricted equity securities

 

 

 

291

 

 

 

 

348

 

 

 

 

332

 

 

 

 

334

 

 

 

 

313

 

 

 

(16.4

)

%

 

 

(7.0

)

%

Federal funds sold and other

 

 

 

836

 

 

 

 

879

 

 

 

 

989

 

 

 

 

725

 

 

 

 

583

 

 

 

(4.9

)

%

 

 

43.4

 

%

Total interest income

 

 

 

46,531

 

 

 

 

47,453

 

 

 

 

47,523

 

 

 

 

46,046

 

 

 

 

43,717

 

 

 

(1.9

)

%

 

 

6.4

 

%

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

15,020

 

 

 

 

16,679

 

 

 

 

16,990

 

 

 

 

15,941

 

 

 

 

14,137

 

 

 

(9.9

)

%

 

 

6.2

 

%

Federal funds purchased and repurchase agreements

 

 

 

49

 

 

 

 

90

 

 

 

 

72

 

 

 

 

123

 

 

 

 

69

 

 

 

(45.6

)

%

 

 

(29.0

)

%

Federal Home Loan Bank advances and other

 

 

 

2,118

 

 

 

 

2,237

 

 

 

 

1,959

 

 

 

 

1,979

 

 

 

 

1,867

 

 

 

(5.3

)

%

 

 

13.4

 

%

Subordinated notes

 

 

 

1,082

 

 

 

 

1,082

 

 

 

 

1,082

 

 

 

 

1,082

 

 

 

 

1,082

 

 

 

0.0

 

%

 

 

0.0

 

%

Total interest expense

 

 

 

18,269

 

 

 

 

20,088

 

 

 

 

20,103

 

 

 

 

19,125

 

 

 

 

17,155

 

 

 

(9.1

)

%

 

 

6.5

 

%

Net interest income

 

 

 

28,262

 

 

 

 

27,365

 

 

 

 

27,420

 

 

 

 

26,921

 

 

 

 

26,562

 

 

 

3.3

 

%

 

 

6.4

 

%

Provision for loan losses

 

 

 

1,000

 

 

 

 

7,031

 

 

 

 

5,055

 

 

 

 

975

 

 

 

 

136

 

 

 

(85.8

)

%

 

 

635.3

 

%

Net interest income after provision

 

 

 

27,262

 

 

 

 

20,334

 

 

 

 

22,365

 

 

 

 

25,946

 

 

 

 

26,426

 

 

 

34.1

 

%

 

 

3.2

 

%

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

 

83

 

 

 

 

77

 

 

 

 

74

 

 

 

 

66

 

 

 

 

58

 

 

 

7.8

 

%

 

 

43.1

 

%

Other service charges and fees

 

 

 

1,069

 

 

 

 

903

 

 

 

 

757

 

 

 

 

830

 

 

 

 

747

 

 

 

18.4

 

%

 

 

43.1

 

%

Mortgage banking revenue

 

 

 

2,702

 

 

 

 

2,473

 

 

 

 

1,672

 

 

 

 

1,630

 

 

 

 

1,483

 

 

 

9.3

 

%

 

 

82.2

 

%

Wealth management

 

 

 

767

 

 

 

 

673

 

 

 

 

627

 

 

 

 

741

 

 

 

 

705

 

 

 

14.0

 

%

 

 

8.8

 

%

Gain (loss) on sales and calls of securities

 

 

 

1,493

 

 

 

 

367

 

 

 

 

149

 

 

 

 

(4,160

)

 

 

 

(1

)

 

 

306.8

 

%

 

NM

 

%

Net (loss) gain on sale of loans

 

 

 

(1,758

)

 

 

 

3

 

 

 

 

(217

)

 

 

 

5

 

 

 

 

7

 

 

NM

 

%

 

NM

 

%

Net gain on foreclosed assets

 

 

 

2

 

 

 

 

3

 

 

 

 

4

 

 

 

 

107

 

 

 

 

3

 

 

 

(33.3

)

%

 

 

(33.3

)

%

Other income

 

 

 

435

 

 

 

 

424

 

 

 

 

420

 

 

 

 

397

 

 

 

 

440

 

 

 

2.6

 

%

 

 

(1.1

)

%

Total noninterest income

 

 

 

4,793

 

 

 

 

4,923

 

 

 

 

3,486

 

 

 

 

(384

)

 

 

 

3,442

 

 

 

(2.6

)

%

 

 

39.3

 

%

Total revenue

 

 

 

33,055

 

 

 

 

32,288

 

 

 

 

30,906

 

 

 

 

26,537

 

 

 

 

30,004

 

 

 

2.4

 

%

 

 

10.2

 

%

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

11,632

 

 

 

 

11,365

 

 

 

 

14,743

 

 

 

 

13,657

 

 

 

 

10,723

 

 

 

2.3

 

%

 

 

8.5

 

%

Occupancy and equipment expense

 

 

 

3,360

 

 

 

 

3,283

 

 

 

 

3,113

 

 

 

 

3,216

 

 

 

 

2,933

 

 

 

2.3

 

%

 

 

14.6

 

%

FDIC assessment expense

 

 

 

(357

)

 

 

 

660

 

 

 

 

990

 

 

 

 

990

 

 

 

 

1,020

 

 

 

(154.1

)

%

 

 

(135.0

)

%

Marketing expense

 

 

 

315

 

 

 

 

301

 

 

 

 

319

 

 

 

 

236

 

 

 

 

306

 

 

 

4.7

 

%

 

 

2.9

 

%

Professional fees

 

 

 

1,118

 

 

 

 

1,073

 

 

 

 

923

 

 

 

 

1,107

 

 

 

 

1,023

 

 

 

4.2

 

%

 

 

9.3

 

%

Other expense

 

 

 

2,546

 

 

 

 

2,688

 

 

 

 

2,528

 

 

 

 

2,483

 

 

 

 

2,246

 

 

 

(5.3

)

%

 

 

13.4

 

%

Total noninterest expense

 

 

 

18,614

 

 

 

 

19,370

 

 

 

 

22,616

 

 

 

 

21,689

 

 

 

 

18,251

 

 

 

(3.9

)

%

 

 

2.0

 

%

Net income before income taxes

 

 

 

13,441

 

 

 

 

5,887

 

 

 

 

3,235

 

 

 

 

3,873

 

 

 

 

11,617

 

 

 

128.3

 

%

 

 

15.7

 

%

Income tax expense

 

 

 

2,117

 

 

 

 

706

 

 

 

 

334

 

 

 

 

122

 

 

 

 

1,068

 

 

 

199.9

 

%

 

 

98.2

 

%

Net income

 

$

 

11,324

 

 

$

 

5,181

 

 

$

 

2,901

 

 

$

 

3,751

 

 

$

 

10,549

 

 

 

118.6

 

%

 

 

7.3

 

%

Earnings attributable to noncontrolling interest

 

 

 

-

 

 

 

 

(8

)

 

 

 

-

 

 

 

 

(8

)

 

 

 

-

 

 

 

0.0

 

%

 

 

0.0

 

%

Net income available to common shareholders (a)

 

$

 

11,324

 

 

$

 

5,173

 

 

$

 

2,901

 

 

$

 

3,743

 

 

$

 

10,549

 

 

 

118.9

 

%

 

 

7.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

14,530,586

 

 

 

 

14,482,344

 

 

 

 

14,393,083

 

 

 

 

14,354,399

 

 

 

 

14,324,299

 

 

 

 

 

 

 

 

 

 

 

Fully diluted

 

 

 

14,991,363

 

 

 

 

14,894,140

 

 

 

 

14,804,830

 

 

 

 

14,821,540

 

 

 

 

14,903,751

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

0.77

 

 

$

 

0.35

 

 

$

 

0.20

 

 

$

 

0.26

 

 

$

 

0.73

 

 

 

 

 

 

 

 

 

 

 

Fully diluted

 

$

 

0.75

 

 

$

 

0.34

 

 

$

 

0.19

 

 

$

 

0.25

 

 

$

 

0.70

 

 

 

 

 

 

 

 

 

 

 

Dividend per share

 

$

 

0.04

 

 

$

 

0.04

 

 

$

 

0.04

 

 

$

 

-

 

 

$

 

-

 

 

 

 

 

 

 

 

 

 

 

(a) Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the second and fourth quarters.

Consolidated Balance Sheets

(Unaudited)

(In Thousands, Except %)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2019

 

Q3 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

vs.

 

vs.

 

 

 

2019

 

 

 

 

2018

 

 

Q2 2019

 

Q3 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized

 

Percent

 

 

 

Third Quarter

 

 

 

 

Second Quarter

 

 

 

 

First Quarter

 

 

 

 

Fourth Quarter

 

 

 

 

Third Quarter

 

 

Variance

 

Variance

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

 

178,747

 

 

 

$

 

150,721

 

 

 

$

 

300,113

 

 

 

$

 

280,212

 

 

 

$

 

144,660

 

 

 

73.8

 

%

 

 

23.6

 

%

Certificates of deposit at other financial institutions

 

 

 

3,590

 

 

 

 

 

3,840

 

 

 

 

 

3,595

 

 

 

 

 

3,594

 

 

 

 

 

3,104

 

 

 

(25.8

)

%

 

 

15.7

 

%

Securities available for sale, fair value

 

 

 

612,371

 

 

 

 

 

715,132

 

 

 

 

 

799,301

 

 

 

 

 

1,030,668

 

 

 

 

 

1,115,187

 

 

 

(57.0

)

%

 

 

(45.1

)

%

Securities held to maturity

 

 

 

-

 

 

 

 

 

118,963

 

 

 

 

 

118,831

 

 

 

 

 

121,617

 

 

 

 

 

204,587

 

 

NM

 

%

 

 

(100.0

)

%

Loans held for sale, at fair value

 

 

 

56,570

 

 

 

 

 

27,093

 

 

 

 

 

21,730

 

 

 

 

 

11,103

 

 

 

 

 

14,563

 

 

 

431.6

 

%

 

 

288.5

 

%

Loans held for investment

 

 

 

2,796,233

 

 

 

 

 

2,880,433

 

 

 

 

 

2,807,377

 

 

 

 

 

2,665,399

 

 

 

 

 

2,550,121

 

 

 

(11.6

)

%

 

 

9.7

 

%

Allowance for loan losses

 

 

 

(26,474

)

 

 

 

 

(27,443

)

 

 

 

 

(27,857

)

 

 

 

 

(23,451

)

 

 

 

 

(22,479

)

 

 

(14.0

)

%

 

 

17.8

 

%

Net loans

 

 

 

2,769,759

 

 

 

 

 

2,852,990

 

 

 

 

 

2,779,520

 

 

 

 

 

2,641,948

 

 

 

 

 

2,527,642

 

 

 

(11.6

)

%

 

 

9.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted equity securities, at cost

 

 

 

24,764

 

 

 

 

 

24,524

 

 

 

 

 

22,510

 

 

 

 

 

21,538

 

 

 

 

 

21,500

 

 

 

3.9

 

%

 

 

15.2

 

%

Premises and equipment, net

 

 

 

12,449

 

 

 

 

 

12,948

 

 

 

 

 

12,682

 

 

 

 

 

12,371

 

 

 

 

 

11,852

 

 

 

(15.3

)

%

 

 

5.0

 

%

Accrued interest receivable

 

 

 

12,077

 

 

 

 

 

14,281

 

 

 

 

 

14,232

 

 

 

 

 

13,337

 

 

 

 

 

14,391

 

 

 

(61.2

)

%

 

 

(16.1

)

%

Bank owned life insurance

 

 

 

56,366

 

 

 

 

 

55,989

 

 

 

 

 

55,614

 

 

 

 

 

55,239

 

 

 

 

 

54,859

 

 

 

2.7

 

%

 

 

2.7

 

%

Deferred tax asset, net

 

 

 

10,297

 

 

 

 

 

10,451

 

 

 

 

 

12,208

 

 

 

 

 

13,189

 

 

 

 

 

17,366

 

 

 

(5.8

)

%

 

 

(40.7

)

%

Foreclosed assets

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,853

 

 

 

0.0

 

%

 

 

(100.0

)

%

Servicing rights, net

 

 

 

3,128

 

 

 

 

 

3,299

 

 

 

 

 

3,366

 

 

 

 

 

3,403

 

 

 

 

 

3,465

 

 

 

(20.6

)

%

 

 

(9.7

)

%

Goodwill

 

 

 

18,176

 

 

 

 

 

18,176

 

 

 

 

 

18,176

 

 

 

 

 

18,176

 

 

 

 

 

18,176

 

 

 

0.0

 

%

 

 

0.0

 

%

Core deposit intangible asset

 

 

 

556

 

 

 

 

 

675

 

 

 

 

 

807

 

 

 

 

 

952

 

 

 

 

 

1,109

 

 

 

(69.9

)

%

 

 

(49.9

)

%

Other assets

 

 

 

59,474

 

 

 

 

 

62,889

 

 

 

 

 

75,751

 

 

 

 

 

22,092

 

 

 

 

 

13,499

 

 

 

(21.5

)

%

 

 

340.6

 

%

Total assets

 

$

 

3,818,324

 

 

 

$

 

4,071,971

 

 

 

$

 

4,238,436

 

 

 

$

 

4,249,439

 

 

 

$

 

4,167,813

 

 

 

(24.7

)

%

 

 

(8.4

)

%

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

 

346,441

 

 

 

$

 

334,802

 

 

 

$

 

304,937

 

 

 

$

 

290,580

 

 

 

$

 

321,108

 

 

 

13.8

 

%

 

 

7.9

 

%

Interest-bearing

 

 

 

2,715,509

 

 

 

 

 

2,811,843

 

 

 

 

 

3,010,906

 

 

 

 

 

3,141,227

 

 

 

 

 

3,050,442

 

 

 

(13.6

)

%

 

 

(11.0

)

%

Total deposits

 

 

 

3,061,950

 

 

 

 

 

3,146,645

 

 

 

 

 

3,315,843

 

 

 

 

 

3,431,807

 

 

 

 

 

3,371,550

 

 

 

(10.7

)

%

 

 

(9.2

)

%

Federal Home Loan Bank advances

 

 

 

220,000

 

 

 

 

 

396,500

 

 

 

 

 

416,500

 

 

 

 

 

368,500

 

 

 

 

 

371,500

 

 

 

(176.6

)

%

 

 

(40.8

)

%

Subordinated notes, net

 

 

 

58,827

 

 

 

 

 

58,782

 

 

 

 

 

58,738

 

 

 

 

 

58,693

 

 

 

 

 

58,649

 

 

 

0.3

 

%

 

 

0.3

 

%

Accrued interest payable

 

 

 

3,932

 

 

 

 

 

4,312

 

 

 

 

 

5,041

 

 

 

 

 

4,700

 

 

 

 

 

4,726

 

 

 

(35.0

)

%

 

 

(16.8

)

%

Other liabilities

 

 

 

65,354

 

 

 

 

 

72,123

 

 

 

 

 

58,800

 

 

 

 

 

12,906

 

 

 

 

 

5,211

 

 

 

(37.2

)

%

 

NM

 

%

Total liabilities

 

 

 

3,410,063

 

 

 

 

 

3,678,362

 

 

 

 

 

3,854,922

 

 

 

 

 

3,876,606

 

 

 

 

 

3,811,636

 

 

 

(28.9

)

%

 

 

(10.5

)

%

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

269,842

 

 

 

 

 

268,505

 

 

 

 

 

266,758

 

 

 

 

 

264,905

 

 

 

 

 

261,623

 

 

 

2.0

 

%

 

 

3.1

 

%

Retained earnings

 

 

 

138,579

 

 

 

 

 

127,840

 

 

 

 

 

123,250

 

 

 

 

 

123,176

 

 

 

 

 

119,433

 

 

 

33.3

 

%

 

 

16.0

 

%

Accumulated other comprehensive gain/(loss), net

 

 

 

(253

)

 

 

 

 

(2,829

)

 

 

 

 

(6,587

)

 

 

 

 

(15,341

)

 

 

 

 

(24,982

)

 

 

(361.3

)

%

 

 

(99.0

)

%

Total shareholders' equity

 

 

 

408,168

 

 

 

 

 

393,516

 

 

 

 

 

383,421

 

 

 

 

 

372,740

 

 

 

 

 

356,074

 

 

 

14.8

 

%

 

 

14.6

 

%

Noncontrolling interest in consolidated subsidiary

 

 

 

93

 

 

 

 

 

93

 

 

 

 

 

93

 

 

 

 

 

93

 

 

 

 

 

103

 

 

 

0.0

 

%

 

 

(9.7

)

%

Total equity

 

 

 

408,261

 

 

 

 

 

393,609

 

 

 

 

 

383,514

 

 

 

 

 

372,833

 

 

 

 

 

356,177

 

 

 

14.8

 

%

 

 

14.6

 

%

Total liabilities and shareholders' equity

 

$

 

3,818,324

 

 

 

$

 

4,071,971

 

 

 

$

 

4,238,436

 

 

 

$

 

4,249,439

 

 

 

$

 

4,167,813

 

 

 

(24.7

)

%

 

 

(8.4

)

%

Average Balance, Average Yield Earned and Average Rate Paid (7)

For the Periods Ended

(Unaudited)

(In Thousands, Except %)

 

 

Three Months Ended

 

Three Months Ended

 

 

September 30, 2019

 

June 30, 2019

 

 

 

 

 

 

 

Interest

 

 

Average

 

 

 

 

Interest

 

 

Average

 

 

Average

 

 

income/

 

 

yield/

 

Average

 

 

income/

 

 

yield/

 

 

balances

 

 

expense

 

 

rate

 

balances

 

 

expense

 

 

rate

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans(1)(6)

 

$

 

2,848,888

 

 

$

 

39,926

 

 

5.56

 

%

 

$

 

2,858,713

 

 

$

 

40,003

 

 

5.61

 

%

Loans held for sale

 

 

 

22,048

 

 

 

 

217

 

 

 

3.90

 

%

 

 

 

24,118

 

 

 

 

256

 

 

4.26

 

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

 

570,891

 

 

 

 

3,815

 

 

2.65

 

%

 

 

 

673,386

 

 

 

 

4,614

 

 

2.75

 

%

Tax-Exempt

 

 

 

209,442

 

 

 

 

1,991

 

 

3.77

 

%

 

 

 

208,417

 

 

 

 

1,909

 

 

3.67

 

%

Restricted equity securities

 

 

 

24,676

 

 

 

 

292

 

 

 

4.69

 

%

 

 

 

24,331

 

 

 

 

348

 

 

 

5.74

 

%

Total Securities

 

 

 

805,009

 

 

 

 

6,098

 

 

3.01

 

%

 

 

 

906,134

 

 

 

 

6,871

 

 

3.04

 

%

Certificates of deposit at other financial institutions

 

 

 

3,628

 

 

 

 

22

 

 

2.41

 

%

 

 

 

3,759

 

 

 

 

22

 

 

2.35

 

%

Fed funds sold and other (2)

 

 

 

158,618

 

 

 

 

814

 

 

 

2.04

 

%

 

 

 

147,542

 

 

 

 

857

 

 

2.33

 

%

Total interest earning assets

 

 

 

3,838,191

 

 

 

 

47,077

 

 

4.87

 

%

 

 

 

3,940,266

 

 

 

 

48,009

 

 

4.89

 

%

Noninterest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

 

(27,364

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,007

)

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

 

188,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

192,843

 

 

 

 

 

 

 

 

 

 

 

Total noninterest earning assets

 

 

 

161,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

164,836

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

 

3,999,347

 

 

 

 

 

 

 

 

 

 

 

 

$

 

4,105,102

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Checking

 

$

 

712,992

 

 

$

 

3,536

 

 

1.97

 

%

 

$

 

816,429

 

 

$

 

4,357

 

 

2.14

 

%

Money market

 

 

 

1,112,573

 

 

 

 

5,815

 

 

 

2.07

 

%

 

 

 

1,026,200

 

 

 

 

6,103

 

 

2.39

 

%

Savings deposits

 

 

 

38,952

 

 

 

27

 

 

0.28

 

%

 

 

 

38,882

 

 

 

 

27

 

 

0.28

 

%

Time deposits

 

 

 

928,571

 

 

 

 

5,642

 

 

 

2.41

 

%

 

 

 

1,036,904

 

 

 

 

6,192

 

 

 

2.40

 

%

Total interest bearing deposits

 

 

 

2,793,088

 

 

 

 

15,020

 

 

 

2.13

 

%

 

 

 

2,918,415

 

 

 

 

16,679

 

 

2.29

 

%

Other interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLB advances and other (8)

 

 

 

343,419

 

 

 

 

2,117

 

 

2.45

 

%

 

 

 

349,615

 

 

 

 

2,237

 

 

2.57

 

%

Federal funds purchased and other (3)

 

 

 

7,170

 

 

 

49

 

 

2.71

 

%

 

 

 

13,249

 

 

 

 

90

 

 

2.72

 

%

Subordinated notes

 

 

 

58,798

 

 

 

 

1,082

 

 

 

7.30

 

%

 

 

 

58,754

 

 

 

 

1,082

 

 

7.39

 

%

Total other interest-bearing liabilities

 

 

 

409,387

 

 

 

 

3,248

 

 

3.15

 

%

 

 

 

421,618

 

 

 

 

3,409

 

 

3.24

 

%

Total Interest-bearing liabilities

 

$

 

3,202,475

 

 

$

 

18,268

 

 

2.26

 

%

 

$

 

3,340,033

 

 

$

 

20,088

 

 

2.41

 

%

Noninterest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

 

329,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

313,104

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 

68,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

63,505

 

 

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

 

397,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

376,609

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

3,600,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,716,642

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

399,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

388,460

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

 

3,999,347

 

 

 

 

 

 

 

 

 

 

 

 

$

 

4,105,102

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

 

$

 

28,809

 

 

 

 

 

 

 

 

 

 

 

 

$

 

27,921

 

 

 

 

 

 

Interest rate spread (4)

 

 

 

 

 

 

 

 

 

 

 

 

2.61

 

%

 

 

 

 

 

 

 

 

 

 

 

 

2.48

 

%

Net interest margin (5)

 

 

 

 

 

 

 

 

 

 

 

 

2.98

 

%

 

 

 

 

 

 

 

 

 

 

 

 

2.84

 

%

Cost of total deposits

 

 

 

 

 

 

 

 

 

 

 

 

1.91

 

%

 

 

 

 

 

 

 

 

 

 

 

 

2.07

 

%

Average interest-earning assets to average interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

119.85

 

%

 

 

 

 

 

 

 

 

 

 

 

 

117.97

 

%

Tax equivalent adjustment

 

 

 

 

 

 

$

 

546

 

 

 

 

 

 

 

 

 

 

 

 

$

 

556

 

 

 

 

 

 

Loan yield components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual interest rate on loans held for investment (1)

 

 

 

 

 

 

$

 

37,908

 

 

 

5.28

 

%

 

 

 

 

 

 

$

 

37,925

 

 

 

5.32

 

%

Origination and other loan fee income

 

 

 

 

 

 

 

 

1,895

 

 

 

0.26

 

%

 

 

 

 

 

 

 

 

1,904

 

 

 

0.27

 

%

Accretion on purchased loans

 

 

 

 

 

 

 

 

123

 

 

 

0.02

 

%

 

 

 

 

 

 

 

 

174

 

 

 

0.02

 

%

Nonaccrual interest collections

 

 

 

 

 

 

 

 

-

 

 

 

-

 

%

 

 

 

 

 

 

 

 

-

 

 

 

-

 

%

Total loan yield

 

 

 

 

 

 

$

 

39,926

 

 

 

5.56

 

%

 

 

 

 

 

 

$

 

40,003

 

 

 

5.61

 

%

(1) Loan balances are net of deferred origination fees and costs. Nonaccrual loans are included in total loan balances.

(2) Includes federal funds sold and capital stock in the Federal Reserve Bank and Federal Home Loan Bank, and interest-bearing deposits at the Federal Reserve Bank and the Federal Home Loan Bank.

(3) Includes repurchase agreements.

(4) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(5) Represents net interest income (annualized) divided by total average earning assets.

(6) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax-exempt interest income on tax exempt loans and investment securities to a fully taxable basis.

(7) Average balances are average daily balances.

(8) Includes finance lease.

Average Balance, Average Yield Earned and Average Rate Paid (7)

For the Quarters Ended

(Unaudited)

(In Thousands, Except %)

 

 

Three Months Ended

Three Months Ended

Three Months Ended

 

 

March 31, 2019

December 31, 2018

September 30, 2018

 

 

Average

 

Interest

 

Average

 

Average

 

Interest

 

Average

Average

 

Interest

 

Average

 

 

balances

 

income/expense

 

yield/rate

 

balances

 

income/expense

 

yield/rate

balances

 

income/expense

 

yield/rate

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment(1)(6)

 

$

 

2,764,675

 

 

 

$

 

38,238

 

 

 

5.61

 

%

 

$

 

2,617,649

 

 

 

$

 

36,234

 

 

 

 

5.49

 

%

 

$

 

2,517,545

 

 

 

$

 

34,337

 

 

 

5.41

 

%

Loans held for sale

 

 

 

9,438

 

 

 

 

 

115

 

 

 

4.94

 

%

 

 

 

9,129

 

 

 

 

 

104

 

 

 

 

4.52

 

%

 

 

 

11,059

 

 

 

 

 

120

 

 

 

 

4.30

 

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

 

919,549

 

 

 

 

 

6,394

 

 

 

 

2.82

 

%

 

 

 

1,082,429

 

 

 

 

 

7,058

 

 

 

 

2.59

 

%

 

 

 

1,111,376

 

 

 

 

 

6,460

 

 

 

2.31

 

%

Tax-Exempt

 

 

 

181,699

 

 

 

 

 

1,990

 

 

 

4.44

 

%

 

 

 

193,004

 

 

 

 

 

2,186

 

 

 

 

4.49

 

%

 

 

 

229,579

 

 

 

 

 

2,605

 

 

 

 

4.50

 

%

Restricted equity securities

 

 

 

22,082

 

 

 

 

 

332

 

 

 

6.1

 

%

 

 

 

21,518

 

 

 

 

 

334

 

 

 

 

6.16

 

%

 

 

 

20,775

 

 

 

 

 

311

 

 

 

5.94

 

%

Total Securities

 

 

 

1,123,330

 

 

 

 

 

8,716

 

 

 

3.15

 

%

 

 

 

1,296,951

 

 

 

 

 

9,578

 

 

 

2.93

 

%

 

 

 

1,361,730

 

 

 

 

 

9,376

 

 

 

2.73

 

%

Certificates of deposit at other financial institutions

 

 

 

3,592

 

 

 

 

20

 

 

 

2.26

 

%

 

 

 

3,123

 

 

 

 

16

 

 

 

2.03

 

%

 

 

 

3,113

 

 

 

 

16

 

 

 

2.04

 

%

Fed funds sold and other (2)

 

 

 

143,196

 

 

 

 

 

969

 

 

 

2.74

 

%

 

 

 

127,769

 

 

 

 

 

709

 

 

 

2.2

 

%

 

 

 

108,164

 

 

 

 

 

569

 

 

 

2.09

 

%

Total interest earning assets

 

 

 

4,044,231

 

 

 

 

 

48,058

 

 

 

 

4.82

 

%

 

 

 

4,054,621

 

 

 

 

 

46,641

 

 

 

4.56

 

%

 

 

 

4,001,611

 

 

 

 

 

44,418

 

 

 

 

4.40

 

%

Noninterest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

 

(24,054

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,667

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,588

)

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

 

200,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

151,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

153,478

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest earning assets

 

 

 

176,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

129,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

130,890

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

 

4,220,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

4,183,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

4,132,501

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Checking

 

$

 

857,096

 

 

 

$

 

4,420

 

 

 

 

2.09

 

%

 

$

 

751,873

 

 

 

$

 

3,564

 

 

 

1.88

 

%

 

$

 

790,733

 

 

 

$

 

3,406

 

 

 

 

1.71

 

%

Money market

 

 

 

992,842

 

 

 

 

 

5,979

 

 

 

 

2.44

 

%

 

 

 

822,850

 

 

 

 

4499

 

 

 

2.17

 

%

 

 

 

736,157

 

 

 

 

3489

 

 

 

1.88

 

%

Savings deposits

 

 

 

40,609

 

 

 

 

28

 

 

 

 

0.28

 

%

 

 

 

44,336

 

 

 

 

32

 

 

 

0.29

 

%

 

 

 

46,589

 

 

 

 

34

 

 

 

0.29

 

%

Time deposits

 

 

 

1,165,666

 

 

 

 

 

6,563

 

 

 

2.28

 

%

 

 

 

1,442,783

 

 

 

 

 

7,846

 

 

 

2.16

 

%

 

 

 

1,466,903

 

 

 

 

 

7,208

 

 

 

1.95

 

%

Total interest bearing deposits

 

 

 

3,056,213

 

 

 

 

 

16,990

 

 

 

2.25

 

%

 

 

 

3,061,842

 

 

 

 

 

15,941

 

 

 

2.07

 

%

 

 

 

3,040,382

 

 

 

 

 

14,137

 

 

 

1.84

 

%

Other interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLB advances

 

 

 

364,711

 

 

 

 

 

1,959

 

 

 

2.18

 

%

 

 

 

365,696

 

 

 

 

 

1,979

 

 

 

2.15

 

%

 

 

 

351,228

 

 

 

 

 

1,867

 

 

 

2.11

 

%

Federal funds purchased and other (3)

 

 

 

10,594

 

 

 

 

72

 

 

 

2.76

 

%

 

 

 

19,626

 

 

 

 

123

 

 

 

2.49

 

%

 

 

 

12,805

 

 

 

 

69

 

 

 

2.14

 

%

Subordinated notes

 

 

 

58,709

 

 

 

 

 

1,082

 

 

 

7.47

 

%

 

 

 

58,664

 

 

 

 

 

1,082

 

 

 

7.32

 

%

 

 

 

58,622

 

 

 

 

 

1,082

 

 

 

 

7.32

 

%

Total other interest-bearing liabilities

 

 

 

434,014

 

 

 

 

 

3,113

 

 

 

2.91

 

%

 

 

 

443,986

 

 

 

 

 

3,184

 

 

 

2.85

 

%

 

 

 

422,655

 

 

 

 

 

3,018

 

 

 

 

2.83

 

%

Total Interest-bearing liabilities

 

$

 

3,490,227

 

 

 

$

 

20,103

 

 

 

2.34

 

%

 

$

 

3,505,828

 

 

 

$

 

19,125

 

 

 

2.16

 

%

 

$

 

3,463,037

 

 

 

$

 

17,155

 

 

 

1.97

 

%

Noninterest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

 

291,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

303,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

305,432

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 

61,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,739