For the year ended
The current year results include a
Regarding the announced merger with Provident Financial Services, Inc. ("Provident Financial"),
Full Year 2023 Highlights
- Loans grew
$477.8 million or 6% during the year with commercial real estate loans increasing$263.0 million , or 5%, and residential mortgages increasing$220.2 million , or 29%. - Net interest margin for 2023 decreased 47 basis points to 2.77% compared to 2022 due primarily to the increase in the market rate environment and the resulting movement of customers from lower rate interest-bearing transaction accounts to higher rate time deposits.
- The provision for credit losses of
$13.1 million for the year endedDecember 31, 2023 increased$4.5 million from$8.5 million for 2022. The Company recorded a charge-off of$6.6 million for subordinated debt securities issued by Signature Bank which failed in first quarter of 2023.
Net Interest Margin and Net Interest Income
Net interest margin for the three months and year ended
Net interest income for the fourth quarter of 2023 of
Net interest margin for the fourth quarter of 2023 of 2.52% decreased 76 basis points compared to the fourth quarter of 2022 and declined 16 basis points compared to the third quarter of 2023. Net interest margin for the full year of 2023 of 2.77% decreased 47 basis points compared to 3.24% for 2022.
The yield on interest-earning assets for the fourth quarter of 2023 was 4.93% compared to 4.31% for the fourth quarter of 2022 and 4.86% for the third quarter of 2023. The yield on interest-earning assets for 2023 was 4.77% compared to 3.77% for 2022 resulting primarily from an increase in the yields on interest-earning assets.
The cost of interest-bearing liabilities increased in the fourth quarter of 2023 to 3.25% compared to 1.50% for the fourth quarter of 2022 and 2.96% for the third quarter of 2023. The cost of interest-bearing liabilities for the year ended
Noninterest Income
Noninterest income decreased
For the year ended
Noninterest Expense
Noninterest expense totaled
For the year ended
Income Tax Expense
The effective tax rate for the fourth quarter of 2023 was 26.1% compared to 27.1% for the fourth quarter of 2022. The effective tax rate for 2023 and 2022 was 23.5% and 25.4%, respectively. The effective tax rate declined from 2022 to 2023 as a result in a decline in pretax income and the resulting increase of tax advantaged items as a percent of pretax income.
Financial Condition
At
Asset Quality
At
Capital
At
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with
The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
Specifically, the Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.
These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying "Supplemental Information - Non-GAAP Financial Measures" and "Supplemental Information – Reconciliation of Net Income" for a reconciliation of non-GAAP financial measures.
About Lakeland
President & CEO | EVP & CFO |
Financial Highlights (Unaudited) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Income Statement | |||||||||||||||
Net interest income | $ | 65,308 | $ | 81,640 | $ | 281,681 | $ | 312,615 | |||||||
(Provision) benefit for credit losses | (1,950 | ) | 2,760 | (13,052 | ) | (8,514 | ) | ||||||||
Gain on sales of loans | 505 | 269 | 1,513 | 2,765 | |||||||||||
Gain (loss) on equity securities | 391 | 11 | 110 | (1,302 | ) | ||||||||||
Other noninterest income | 5,890 | 6,743 | 23,515 | 26,636 | |||||||||||
Merger-related expenses | (129 | ) | (533 | ) | (864 | ) | (8,606 | ) | |||||||
Other noninterest expense | (42,864 | ) | (44,837 | ) | (182,110 | ) | (179,602 | ) | |||||||
Pretax income | 27,151 | 46,053 | 110,793 | 143,992 | |||||||||||
Provision for income taxes | (7,083 | ) | (12,476 | ) | (26,053 | ) | (36,623 | ) | |||||||
Net income | $ | 20,068 | $ | 33,577 | $ | 84,740 | $ | 107,369 | |||||||
Basic earnings per common share | $ | 0.31 | $ | 0.51 | $ | 1.29 | $ | 1.64 | |||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.51 | $ | 1.29 | $ | 1.63 | |||||||
Dividends paid per common share | $ | 0.145 | $ | 0.145 | $ | 0.580 | $ | 0.570 | |||||||
Weighted average shares - basic | 65,064 | 64,854 | 65,039 | 64,624 | |||||||||||
Weighted average shares - diluted | 65,258 | 65,222 | 65,217 | 64,918 | |||||||||||
Selected Operating Ratios | |||||||||||||||
Annualized return on average assets | 0.73 | % | 1.26 | % | 0.78 | % | 1.04 | % | |||||||
Annualized return on average common equity | 6.97 | % | 12.19 | % | 7.48 | % | 9.80 | % | |||||||
Annualized return on average tangible common equity (1) | 9.23 | % | 16.42 | % | 9.94 | % | 13.17 | % | |||||||
Annualized yield on interest-earning assets | 4.93 | % | 4.31 | % | 4.77 | % | 3.77 | % | |||||||
Annualized cost of interest-bearing liabilities | 3.25 | % | 1.50 | % | 2.74 | % | 0.80 | % | |||||||
Annualized net interest spread | 1.68 | % | 2.81 | % | 2.03 | % | 2.97 | % | |||||||
Annualized net interest margin | 2.52 | % | 3.28 | % | 2.77 | % | 3.24 | % | |||||||
Efficiency ratio (1) | 58.45 | % | 49.67 | % | 58.38 | % | 51.79 | % | |||||||
Stockholders' equity to total assets | 10.50 | % | 10.28 | % | |||||||||||
Book value per common share | $ | 17.98 | $ | 17.09 | |||||||||||
Tangible book value per common share (1) | $ | 13.69 | $ | 12.76 | |||||||||||
Tangible common equity to tangible assets (1) | 8.20 | % | 7.88 | % | |||||||||||
Asset Quality Ratios | 2023 | 2022 | |||||||||||||
Ratio of allowance for credit losses on loans to total loans | 0.92 | % | 0.89 | % | |||||||||||
Non-performing loans to total loans | 0.31 | % | 0.22 | % | |||||||||||
Non-performing assets to total assets | 0.23 | % | 0.16 | % | |||||||||||
Net charge-offs to average loans | — | % | 0.10 | % | |||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||
Selected Balance Sheet Data at Period End | 2023 | 2022 | |||||||||||||
Loans | $ | 8,343,861 | $ | 7,866,050 | |||||||||||
Allowance for credit losses on loans | 77,163 | 70,264 | |||||||||||||
Investment securities | 1,852,873 | 2,037,386 | |||||||||||||
Total assets | 11,138,567 | 10,783,840 | |||||||||||||
Total deposits | 8,581,238 | 8,567,471 | |||||||||||||
Short-term borrowings | 714,152 | 728,797 | |||||||||||||
Other borrowings | 519,705 | 219,264 | |||||||||||||
Stockholders' equity | 1,169,369 | 1,108,587 |
Financial Highlights (Unaudited) | |||||||||||
Three Months Ended | Year Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Selected Average Balance Sheet Data | |||||||||||
Loans | $ | 8,304,747 | $ | 7,729,510 | $ | 8,094,267 | $ | 7,376,839 | |||
Investment securities | 1,955,407 | 2,145,252 | 2,037,915 | 2,128,870 | |||||||
Interest-earning assets | 10,354,079 | 9,923,173 | 10,234,821 | 9,694,234 | |||||||
Total assets | 10,963,641 | 10,534,884 | 10,837,396 | 10,307,245 | |||||||
Noninterest-bearing demand deposits | 1,829,996 | 2,240,197 | 1,918,633 | 2,267,867 | |||||||
Savings deposits | 699,199 | 1,001,870 | 803,762 | 1,094,399 | |||||||
Interest-bearing transaction accounts | 4,229,019 | 4,389,672 | 4,140,942 | 4,373,830 | |||||||
Time deposits | 1,926,436 | 1,100,911 | 1,724,672 | 922,935 | |||||||
Total deposits | 8,684,650 | 8,732,650 | 8,588,009 | 8,659,031 | |||||||
Short-term borrowings | 423,629 | 311,875 | 649,551 | 197,557 | |||||||
Other borrowings | 519,635 | 219,202 | 298,379 | 218,811 | |||||||
Total interest-bearing liabilities | 7,797,918 | 7,023,530 | 7,617,306 | 6,807,532 | |||||||
Stockholders' equity | 1,142,031 | 1,092,720 | 1,132,656 | 1,095,861 |
Consolidated Statements of Income (Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Interest Income | |||||||||||||||
Loans and fees | $ | 114,678 | $ | 95,295 | $ | 432,038 | $ | 325,001 | |||||||
Federal funds sold and interest-bearing deposits with banks | 1,293 | 449 | 5,309 | 1,295 | |||||||||||
Taxable investment securities and other | 11,905 | 10,769 | 47,476 | 35,352 | |||||||||||
Tax exempt investment securities | 1,450 | 1,666 | 6,215 | 5,895 | |||||||||||
Total Interest Income | 129,326 | 108,179 | 491,038 | 367,543 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 52,175 | 21,767 | 163,095 | 44,253 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 5,791 | 2,771 | 33,564 | 3,658 | |||||||||||
Other borrowings | 6,052 | 2,001 | 12,698 | 7,017 | |||||||||||
Total Interest Expense | 64,018 | 26,539 | 209,357 | 54,928 | |||||||||||
Net Interest Income | 65,308 | 81,640 | 281,681 | 312,615 | |||||||||||
Provision (benefit) for credit losses | 1,950 | (2,760 | ) | 13,052 | 8,514 | ||||||||||
Net Interest Income after Provision (Benefit) for Credit Losses | 63,358 | 84,400 | 268,629 | 304,101 | |||||||||||
Noninterest Income | |||||||||||||||
Service charges on deposit accounts | 2,710 | 2,840 | 10,339 | 10,985 | |||||||||||
Commissions and fees | 1,706 | 2,243 | 7,225 | 9,116 | |||||||||||
Income on bank owned life insurance | 837 | 862 | 3,450 | 3,980 | |||||||||||
Gain (loss) on equity securities | 391 | 11 | 110 | (1,302 | ) | ||||||||||
Gain on sales of loans | 505 | 269 | 1,513 | 2,765 | |||||||||||
Swap income | 482 | 466 | 1,596 | 1,576 | |||||||||||
Other income | 155 | 332 | 905 | 979 | |||||||||||
Total Noninterest Income | 6,786 | 7,023 | 25,138 | 28,099 | |||||||||||
Noninterest Expense | |||||||||||||||
Compensation and employee benefits | 25,137 | 26,914 | 108,874 | 108,167 | |||||||||||
Premises and equipment | 7,447 | 7,657 | 31,304 | 30,882 | |||||||||||
1,350 | 690 | 5,294 | 2,724 | ||||||||||||
Data processing | 1,744 | 1,258 | 7,563 | 6,238 | |||||||||||
Merger-related expenses | 129 | 533 | 864 | 8,606 | |||||||||||
Other operating expenses | 7,186 | 8,318 | 29,075 | 31,591 | |||||||||||
Total Noninterest Expense | 42,993 | 45,370 | 182,974 | 188,208 | |||||||||||
Income before provision for income taxes | 27,151 | 46,053 | 110,793 | 143,992 | |||||||||||
Provision for income taxes | 7,083 | 12,476 | 26,053 | 36,623 | |||||||||||
Net Income | $ | 20,068 | $ | 33,577 | $ | 84,740 | $ | 107,369 | |||||||
Per Share of Common Stock | |||||||||||||||
Basic earnings | $ | 0.31 | $ | 0.51 | $ | 1.29 | $ | 1.64 | |||||||
Diluted earnings | $ | 0.30 | $ | 0.51 | $ | 1.29 | $ | 1.63 | |||||||
Dividends | $ | 0.145 | $ | 0.145 | $ | 0.580 | $ | 0.570 |
Consolidated Balance Sheets | ||||||||
(dollars in thousands) | ||||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 293,366 | $ | 223,299 | ||||
Interest-bearing deposits due from banks | 27,289 | 12,651 | ||||||
Total cash and cash equivalents | 320,655 | 235,950 | ||||||
Investment securities available for sale, at estimated fair value (allowance for credit losses of | 946,282 | 1,054,312 | ||||||
Investment securities held to maturity (estimated fair value of | 836,377 | 923,308 | ||||||
Equity securities, at fair value | 17,697 | 17,283 | ||||||
52,517 | 42,483 | |||||||
Loans held for sale | 664 | 536 | ||||||
Loans, net of deferred fees | 8,343,861 | 7,866,050 | ||||||
Less: Allowance for credit losses | 77,163 | 70,264 | ||||||
Net loans | 8,266,698 | 7,795,786 | ||||||
Premises and equipment, net | 52,846 | 55,429 | ||||||
Operating lease right-of-use assets | 16,008 | 20,052 | ||||||
Accrued interest receivable | 37,508 | 33,374 | ||||||
271,829 | 271,829 | |||||||
Other identifiable intangible assets | 7,058 | 9,088 | ||||||
Bank owned life insurance | 159,862 | 156,985 | ||||||
Other assets | 152,566 | 167,425 | ||||||
Total Assets | $ | 11,138,567 | $ | 10,783,840 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,781,619 | $ | 2,113,289 | ||||
Savings and interest-bearing transaction accounts | 4,832,171 | 5,246,005 | ||||||
Time deposits | 1,458,640 | 901,505 | ||||||
Time deposits over | 508,808 | 306,672 | ||||||
Total deposits | 8,581,238 | 8,567,471 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 714,152 | 728,797 | ||||||
Other borrowings | 325,000 | 25,000 | ||||||
Subordinated debentures | 194,705 | 194,264 | ||||||
Operating lease liabilities | 16,891 | 21,449 | ||||||
Other liabilities | 137,212 | 138,272 | ||||||
Total Liabilities | 9,969,198 | 9,675,253 | ||||||
Stockholders' Equity | ||||||||
Common stock, no par value; authorized 100,000,000 shares; issued 65,161,310 shares and outstanding 65,030,275 shares at | 858,857 | 855,425 | ||||||
Retained earnings | 376,044 | 329,375 | ||||||
(1,452 | ) | (1,452 | ) | |||||
Accumulated other comprehensive (loss) income | (64,080 | ) | (74,761 | ) | ||||
Total Stockholders' Equity | 1,169,369 | 1,108,587 | ||||||
Total Liabilities and Stockholders' Equity | $ | 11,138,567 | $ | 10,783,840 |
Financial Highlights (Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 65,308 | $ | 68,906 | $ | 71,542 | $ | 75,925 | $ | 81,640 | ||||||||||
(Provision) benefit for credit losses | (1,950 | ) | (1,262 | ) | (1,947 | ) | (7,893 | ) | 2,760 | |||||||||||
Gain on sales of loans | 505 | 349 | 229 | 430 | 269 | |||||||||||||||
Gain (loss) on equity securities | 391 | (294 | ) | (135 | ) | 148 | 11 | |||||||||||||
Other noninterest income | 5,890 | 5,363 | 6,575 | 5,687 | 6,743 | |||||||||||||||
Merger-related expenses | (129 | ) | (198 | ) | (242 | ) | (295 | ) | (533 | ) | ||||||||||
Other noninterest expense | (42,864 | ) | (44,170 | ) | (46,766 | ) | (48,310 | ) | (44,837 | ) | ||||||||||
Pretax income | 27,151 | 28,694 | 29,256 | 25,692 | 46,053 | |||||||||||||||
Provision for income taxes | (7,083 | ) | (6,455 | ) | (6,628 | ) | (5,887 | ) | (12,476 | ) | ||||||||||
Net income | $ | 20,068 | $ | 22,239 | $ | 22,628 | $ | 19,805 | $ | 33,577 | ||||||||||
Basic earnings per common share | $ | 0.31 | $ | 0.34 | $ | 0.34 | $ | 0.30 | $ | 0.51 | ||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.34 | $ | 0.34 | $ | 0.30 | $ | 0.51 | ||||||||||
Dividends paid per common share | $ | 0.145 | $ | 0.145 | $ | 0.145 | $ | 0.145 | $ | 0.145 | ||||||||||
Dividends paid | $ | 9,521 | $ | 9,521 | $ | 9,529 | $ | 9,500 | $ | 9,505 | ||||||||||
Weighted average shares - basic | 65,064 | 65,064 | 65,059 | 64,966 | 64,854 | |||||||||||||||
Weighted average shares - diluted | 65,258 | 65,222 | 65,173 | 65,228 | 65,222 | |||||||||||||||
Selected Operating Ratios | ||||||||||||||||||||
Annualized return on average assets | 0.73 | % | 0.81 | % | 0.84 | % | 0.75 | % | 1.26 | % | ||||||||||
Annualized return on average common equity | 6.97 | % | 7.76 | % | 8.03 | % | 7.17 | % | 12.19 | % | ||||||||||
Annualized return on average tangible common equity (1) | 9.23 | % | 10.29 | % | 10.67 | % | 9.57 | % | 16.42 | % | ||||||||||
Annualized net interest margin | 2.52 | % | 2.68 | % | 2.83 | % | 3.07 | % | 3.28 | % | ||||||||||
Efficiency ratio (1) | 58.45 | % | 58.43 | % | 58.82 | % | 57.84 | % | 49.67 | % | ||||||||||
Common stockholders' equity to total assets | 10.50 | % | 10.16 | % | 10.38 | % | 10.40 | % | 10.28 | % | ||||||||||
Tangible common equity to tangible assets (1) | 8.20 | % | 7.86 | % | 8.02 | % | 8.02 | % | 7.88 | % | ||||||||||
Tier 1 risk-based ratio | 11.51 | % | 11.31 | % | 11.43 | % | 11.33 | % | 11.24 | % | ||||||||||
Total risk-based ratio | 14.11 | % | 13.87 | % | 14.03 | % | 13.93 | % | 13.83 | % | ||||||||||
Tier 1 leverage ratio | 9.27 | % | 9.24 | % | 9.17 | % | 9.13 | % | 9.16 | % | ||||||||||
Common equity tier 1 capital ratio | 11.00 | % | 10.80 | % | 10.90 | % | 10.81 | % | 10.71 | % | ||||||||||
Book value per common share | $ | 17.98 | $ | 17.46 | $ | 17.40 | $ | 17.33 | $ | 17.09 | ||||||||||
Tangible book value per common share (1) | $ | 13.69 | $ | 13.17 | $ | 13.10 | $ | 13.01 | $ | 12.76 |
(1) See Supplemental Information - Non-GAAP Financial Measures
Financial Highlights (Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
Selected Balance Sheet Data at Period End | ||||||||||||||||||||
Loans | $ | 8,343,861 | $ | 8,294,057 | $ | 8,101,287 | $ | 7,952,553 | $ | 7,866,050 | ||||||||||
Allowance for credit losses on loans | 77,163 | 75,159 | 73,965 | 71,403 | 70,264 | |||||||||||||||
Investment securities | 1,852,873 | 1,860,996 | 1,938,611 | 1,994,927 | 2,037,386 | |||||||||||||||
Total assets | 11,138,567 | 11,176,809 | 10,897,966 | 10,837,241 | 10,783,840 | |||||||||||||||
Total deposits | 8,581,238 | 8,602,503 | 8,444,681 | 8,536,943 | 8,567,471 | |||||||||||||||
Short-term borrowings | 714,152 | 728,769 | 938,718 | 813,328 | 728,797 | |||||||||||||||
Other borrowings | 519,705 | 519,596 | 219,486 | 219,376 | 219,264 | |||||||||||||||
Stockholders' equity | 1,169,369 | 1,135,627 | 1,131,702 | 1,126,580 | 1,108,587 | |||||||||||||||
Loans | ||||||||||||||||||||
Non owner occupied commercial | $ | 2,987,959 | $ | 2,980,811 | $ | 2,991,124 | $ | 2,943,897 | $ | 2,906,014 | ||||||||||
Owner occupied commercial | 1,283,221 | 1,299,977 | 1,201,049 | 1,205,635 | 1,246,189 | |||||||||||||||
Multifamily | 1,408,905 | 1,361,628 | 1,314,255 | 1,275,771 | 1,260,814 | |||||||||||||||
Non owner occupied residential | 213,986 | 208,560 | 205,818 | 210,203 | 218,026 | |||||||||||||||
Commercial, industrial and other | 638,507 | 632,531 | 594,401 | 562,287 | 606,276 | |||||||||||||||
Paycheck Protection Program | 387 | 388 | 389 | 390 | 435 | |||||||||||||||
Construction | 302,745 | 333,998 | 354,918 | 404,994 | 380,100 | |||||||||||||||
Equipment finance | 179,171 | 174,946 | 173,469 | 161,889 | 151,575 | |||||||||||||||
Residential mortgages | 985,768 | 956,535 | 922,109 | 857,427 | 765,552 | |||||||||||||||
Consumer and home equity | 343,212 | 344,683 | 343,755 | 330,060 | 331,069 | |||||||||||||||
Total loans | $ | 8,343,861 | $ | 8,294,057 | $ | 8,101,287 | $ | 7,952,553 | $ | 7,866,050 | ||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 1,781,619 | $ | 1,857,324 | $ | 1,866,252 | $ | 1,998,590 | $ | 2,113,289 | ||||||||||
Savings and interest-bearing transaction accounts | 4,832,171 | 4,862,246 | 4,775,184 | 4,918,041 | 5,246,005 | |||||||||||||||
Time deposits | 1,967,448 | 1,882,933 | 1,803,245 | 1,620,312 | 1,208,177 | |||||||||||||||
Total deposits | $ | 8,581,238 | $ | 8,602,503 | $ | 8,444,681 | $ | 8,536,943 | $ | 8,567,471 | ||||||||||
Total loans to total deposits ratio | 97.2 | % | 96.4 | % | 95.9 | % | 93.2 | % | 91.8 | % | ||||||||||
Selected Average Balance Sheet Data | ||||||||||||||||||||
Loans | $ | 8,304,747 | $ | 8,167,362 | $ | 7,999,285 | $ | 7,900,426 | $ | 7,729,510 | ||||||||||
Investment securities | 1,955,407 | 2,013,153 | 2,068,073 | 2,117,076 | 2,145,252 | |||||||||||||||
Interest-earning assets | 10,354,079 | 10,276,375 | 10,214,142 | 10,091,341 | 9,923,173 | |||||||||||||||
Total assets | 10,963,641 | 10,875,553 | 10,808,261 | 10,698,807 | 10,534,884 | |||||||||||||||
Noninterest-bearing demand deposits | 1,829,996 | 1,871,516 | 1,935,776 | 2,040,070 | 2,240,197 | |||||||||||||||
Savings deposits | 699,199 | 759,232 | 830,836 | 928,796 | 1,001,870 | |||||||||||||||
Interest-bearing transaction accounts | 4,229,019 | 4,103,217 | 4,007,867 | 4,224,024 | 4,389,672 | |||||||||||||||
Time deposits | 1,926,436 | 1,856,266 | 1,722,935 | 1,385,661 | 1,100,911 | |||||||||||||||
Total deposits | 8,684,650 | 8,590,231 | 8,497,414 | 8,578,551 | 8,732,650 | |||||||||||||||
Short-term borrowings | 423,629 | 744,582 | 813,471 | 617,611 | 311,875 | |||||||||||||||
Other borrowings | 519,635 | 232,573 | 219,425 | 219,308 | 219,202 | |||||||||||||||
Total interest-bearing liabilities | 7,797,918 | 7,695,870 | 7,594,534 | 7,375,400 | 7,023,530 | |||||||||||||||
Stockholders' equity | 1,142,031 | 1,137,387 | 1,130,563 | 1,120,356 | 1,092,720 |
Financial Highlights (Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
Average Annualized Yields (Taxable Equivalent Basis) and Costs | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Loans | 5.48 | % | 5.42 | % | 5.22 | % | 5.10 | % | 4.84 | % | ||||||||||
Taxable investment securities and other | 2.87 | % | 2.84 | % | 2.74 | % | 2.61 | % | 2.41 | % | ||||||||||
Tax-exempt securities | 2.49 | % | 2.49 | % | 2.45 | % | 2.41 | % | 2.36 | % | ||||||||||
Federal funds sold and interest-bearing cash accounts | 5.46 | % | 5.41 | % | 5.41 | % | 4.00 | % | 3.68 | % | ||||||||||
Total interest-earning assets | 4.93 | % | 4.86 | % | 4.71 | % | 4.56 | % | 4.31 | % | ||||||||||
Liabilities | ||||||||||||||||||||
Savings accounts | 0.20 | % | 0.24 | % | 0.26 | % | 0.28 | % | 0.29 | % | ||||||||||
Interest-bearing transaction accounts | 2.89 | % | 2.60 | % | 2.16 | % | 1.85 | % | 1.46 | % | ||||||||||
Time deposits | 4.34 | % | 3.78 | % | 3.39 | % | 2.71 | % | 1.77 | % | ||||||||||
Borrowings | 4.91 | % | 5.04 | % | 4.80 | % | 4.46 | % | 3.52 | % | ||||||||||
Total interest-bearing liabilities | 3.25 | % | 2.96 | % | 2.59 | % | 2.11 | % | 1.50 | % | ||||||||||
Net interest spread (taxable equivalent basis) | 1.68 | % | 1.90 | % | 2.12 | % | 2.45 | % | 2.81 | % | ||||||||||
Annualized net interest margin (taxable equivalent basis) | 2.52 | % | 2.68 | % | 2.83 | % | 3.07 | % | 3.28 | % | ||||||||||
Annualized cost of deposits | 2.38 | % | 2.08 | % | 1.73 | % | 1.38 | % | 0.99 | % | ||||||||||
Asset Quality Data | ||||||||||||||||||||
Allowance for Credit Losses on Loans | ||||||||||||||||||||
Balance at beginning of period | $ | 75,159 | $ | 73,965 | $ | 71,403 | $ | 70,264 | $ | 68,879 | ||||||||||
Provision for credit losses on loans | 2,246 | 1,327 | 2,422 | 1,213 | 1,464 | |||||||||||||||
Charge-offs | (265 | ) | (217 | ) | (148 | ) | (139 | ) | (138 | ) | ||||||||||
Recoveries | 23 | 84 | 288 | 65 | 59 | |||||||||||||||
Balance at end of period | $ | 77,163 | $ | 75,159 | $ | 73,965 | $ | 71,403 | $ | 70,264 | ||||||||||
Net Loan Charge-Offs (Recoveries) | ||||||||||||||||||||
Non owner occupied commercial | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Owner occupied commercial | — | — | (6 | ) | — | — | ||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||
Non owner occupied residential | — | — | — | — | — | |||||||||||||||
Commercial, industrial and other | (7 | ) | — | (163 | ) | (35 | ) | (24 | ) | |||||||||||
Construction | — | — | 13 | — | — | |||||||||||||||
Equipment finance | 83 | 136 | 12 | 46 | 51 | |||||||||||||||
Residential mortgages | 128 | — | — | — | — | |||||||||||||||
Consumer and home equity | 38 | (3 | ) | 4 | 63 | 52 | ||||||||||||||
Net (recoveries) charge-offs | $ | 242 | $ | 133 | $ | (140 | ) | $ | 74 | $ | 79 |
Financial Highlights (Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
Non-Performing Assets | ||||||||||||||||||||
Non owner occupied commercial | $ | 769 | $ | 798 | $ | 864 | $ | 908 | $ | 618 | ||||||||||
Owner occupied commercial | 6,849 | 7,026 | 8,076 | 8,757 | 9,439 | |||||||||||||||
Multifamily | 1,096 | 1,106 | 266 | 584 | — | |||||||||||||||
Non owner occupied residential | — | — | 41 | — | 441 | |||||||||||||||
Commercial, industrial and other | 401 | 217 | 1,737 | 2,221 | 2,978 | |||||||||||||||
Construction | 12,698 | — | — | 980 | 980 | |||||||||||||||
Equipment financing | 518 | 626 | 644 | 379 | 114 | |||||||||||||||
Residential mortgages | 2,400 | 2,319 | 1,954 | 1,918 | 2,011 | |||||||||||||||
Consumer and home equity | 1,232 | 1,331 | 2,486 | 1,131 | 781 | |||||||||||||||
Total non-accrual loans | 25,963 | 13,423 | 16,068 | 16,878 | 17,362 | |||||||||||||||
Total non-performing assets | $ | 25,963 | $ | 13,423 | $ | 16,068 | $ | 16,878 | $ | 17,362 | ||||||||||
Loans past due 90 days or more and still accruing | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loans restructured and still accruing | — | — | — | — | 2,640 | |||||||||||||||
Ratio of allowance for credit losses on loans to total loans | 0.92 | % | 0.91 | % | 0.91 | % | 0.90 | % | 0.89 | % | ||||||||||
Total non-accrual loans to total loans | 0.31 | % | 0.16 | % | 0.20 | % | 0.21 | % | 0.22 | % | ||||||||||
Total non-performing assets to total assets | 0.23 | % | 0.12 | % | 0.15 | % | 0.16 | % | 0.16 | % | ||||||||||
Annualized net (recoveries) charge-offs to average loans | 0.01 | % | 0.01 | % | (0.01) | % | — | % | — | % |
Supplemental Information - Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
At or for the Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
Calculation of Tangible Book Value Per Common Share | ||||||||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 1,169,369 | $ | 1,135,627 | $ | 1,131,702 | $ | 1,126,580 | $ | 1,108,587 | ||||||||||
Less: | 271,829 | 271,829 | 271,829 | 271,829 | 271,829 | |||||||||||||||
Less: Other identifiable intangible assets | 7,058 | 7,559 | 8,060 | 8,572 | 9,088 | |||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 890,482 | $ | 856,239 | $ | 851,813 | $ | 846,179 | $ | 827,670 | ||||||||||
Shares outstanding at end of period | 65,030 | 65,030 | 65,028 | 65,017 | 64,872 | |||||||||||||||
Book value per share - GAAP | $ | 17.98 | $ | 17.46 | $ | 17.40 | $ | 17.33 | $ | 17.09 | ||||||||||
Tangible book value per share - Non-GAAP | $ | 13.69 | $ | 13.17 | $ | 13.10 | $ | 13.01 | $ | 12.76 | ||||||||||
Calculation of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 890,482 | $ | 856,239 | $ | 851,813 | $ | 846,179 | $ | 827,670 | ||||||||||
Total assets at end of period - GAAP | $ | 11,138,567 | $ | 11,176,809 | $ | 10,897,966 | $ | 10,837,241 | $ | 10,783,840 | ||||||||||
Less: | 271,829 | 271,829 | 271,829 | 271,829 | 271,829 | |||||||||||||||
Less: Other identifiable intangible assets | 7,058 | 7,559 | 8,060 | 8,572 | 9,088 | |||||||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 10,859,680 | $ | 10,897,421 | $ | 10,618,077 | $ | 10,556,840 | $ | 10,502,923 | ||||||||||
Common equity to assets - GAAP | 10.50 | % | 10.16 | % | 10.38 | % | 10.40 | % | 10.28 | % | ||||||||||
Tangible common equity to tangible assets - Non-GAAP | 8.20 | % | 7.86 | % | 8.02 | % | 8.02 | % | 7.88 | % | ||||||||||
Calculation of Return on Average Tangible Common Equity | ||||||||||||||||||||
Net income - GAAP | $ | 20,068 | $ | 22,239 | $ | 22,628 | $ | 19,805 | $ | 33,577 | ||||||||||
Total average common stockholders' equity - GAAP | $ | 1,142,031 | $ | 1,137,387 | $ | 1,130,563 | $ | 1,120,356 | $ | 1,092,720 | ||||||||||
Less: Average goodwill | 271,829 | 271,829 | 271,829 | 271,829 | 271,829 | |||||||||||||||
Less: Average other identifiable intangible assets | 7,383 | 7,887 | 8,353 | 8,904 | 9,386 | |||||||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 862,819 | $ | 857,671 | $ | 850,381 | $ | 839,623 | $ | 811,505 | ||||||||||
Return on average common stockholders' equity - GAAP | 6.97 | % | 7.76 | % | 8.03 | % | 7.17 | % | 12.19 | % | ||||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 9.23 | % | 10.29 | % | 10.67 | % | 9.57 | % | 16.42 | % | ||||||||||
Calculation of Efficiency Ratio | ||||||||||||||||||||
Total noninterest expense | $ | 42,993 | $ | 44,368 | $ | 47,008 | $ | 48,605 | $ | 45,370 | ||||||||||
Less: | ||||||||||||||||||||
Amortization of core deposit intangibles | 500 | 501 | 512 | 516 | 581 | |||||||||||||||
Merger-related expenses | 129 | 198 | 242 | 295 | 533 | |||||||||||||||
Noninterest expense, as adjusted | $ | 42,364 | $ | 43,669 | $ | 46,254 | $ | 47,794 | $ | 44,256 | ||||||||||
Net interest income | $ | 65,308 | $ | 68,906 | $ | 71,542 | $ | 75,925 | $ | 81,640 | ||||||||||
Total noninterest income | 6,786 | 5,418 | 6,669 | 6,265 | 7,023 | |||||||||||||||
Total revenue | $ | 72,094 | $ | 74,324 | $ | 78,211 | $ | 82,190 | $ | 88,663 | ||||||||||
Tax-equivalent adjustment on municipal securities | 385 | 408 | 422 | 436 | 443 | |||||||||||||||
Total revenue, as adjusted | $ | 72,479 | $ | 74,732 | $ | 78,633 | $ | 82,626 | $ | 89,106 | ||||||||||
Efficiency ratio - Non-GAAP | 58.45 | % | 58.43 | % | 58.82 | % | 57.84 | % | 49.67 | % |
Supplemental Information - Non-GAAP Financial Measures (Unaudited) | ||||||||
For the Twelve Months Ended | ||||||||
(dollars in thousands) | 2023 | 2022 | ||||||
Calculation of Return on Average Tangible Common Equity | ||||||||
Net income - GAAP | $ | 84,740 | $ | 107,369 | ||||
Total average common stockholders' equity - GAAP | $ | 1,132,656 | $ | 1,095,861 | ||||
Less: Average goodwill | 271,829 | 270,246 | ||||||
Less: Average other identifiable intangible assets | 8,127 | 10,192 | ||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 852,700 | $ | 815,423 | ||||
Return on average common stockholders' equity - GAAP | 7.48 | % | 9.80 | % | ||||
Return on average tangible common stockholders' equity - Non-GAAP | 9.94 | % | 13.17 | % | ||||
Calculation of Efficiency Ratio | ||||||||
Total noninterest expense | $ | 182,974 | $ | 188,208 | ||||
Less: | ||||||||
Amortization of core deposit intangibles | 2,029 | 2,351 | ||||||
Merger-related expenses | 864 | 8,606 | ||||||
Noninterest expense, as adjusted | $ | 180,081 | $ | 177,251 | ||||
Net interest income | $ | 281,681 | $ | 312,615 | ||||
Noninterest income | 25,138 | 28,099 | ||||||
Total revenue | $ | 306,819 | $ | 340,714 | ||||
Tax-equivalent adjustment on municipal securities | 1,652 | 1,567 | ||||||
Total revenue, as adjusted | $ | 308,471 | $ | 342,281 | ||||
Efficiency ratio - Non-GAAP | 58.38 | % | 51.79 | % |
Source:
2024 GlobeNewswire, Inc., source