For the nine months ended
The third quarter and year-to-date results were adversely impacted by provisions for loan losses of
COVID-19
As part of Lakeland’s response to COVID-19, we initiated remote working plans and encouraged the use of our mobile and online banking alternatives. To assist COVID-19 impacted borrowers, we offered temporary payment deferrals on commercial, mortgage and consumer loans. At
Net Interest Margin and Net Interest Income
Net interest margin for the third quarter of 2020 of 2.96% decreased 29 and 10 basis points, respectively, compared to the third quarter of 2019 and the second quarter of 2020. Net interest margin for the first nine months of 2020 of 3.09% compared to 3.35% for the same period in 2019. The decrease in net interest margin was due primarily to a decrease in the yield on interest-earning assets partially offset by a decrease in the cost of interest-bearing liabilities.
The yield on interest-earning assets for the third quarter of 2020 was 3.49% compared to 4.32% for the third quarter of 2019 and 3.69% for the second quarter of 2020. The yield on interest-earning assets for the first nine months of 2020 was 3.77% compared to 4.41% during the same period in 2019. The current quarter and year-to-date decrease in yield on interest-earning assets, when compared to the prior periods, was due primarily to a reduction in the yield on loans due to decreases in the prime rate and LIBOR during 2019 and 2020, an increase in lower yielding federal funds sold, as well as the origination of PPP loans during the second quarter of 2020, which earn an effective yield of 2.50% including amortization of fees and costs.
The cost of interest-bearing liabilities for the third quarter of 2020 was 0.72% compared to 1.41% for the third quarter of 2019 and 0.86% for the second quarter of 2020. The cost of interest-bearing liabilities for the first nine months of 2020 was 0.91% compared to 1.39% during the same period in 2019. The cost of interest-bearing transaction accounts, time deposits and borrowings has decreased since 2019 largely driven by reductions in market interest rates.
Net interest income for the third quarter of 2020 of
Noninterest Income
Noninterest income increased
For the first nine months of 2020, noninterest income increased
Noninterest Expense
Noninterest expense totaled
Noninterest expense for the first nine months of 2020 of
Income Tax Expense
The effective tax rate for the third quarter of 2020 was 23.3% compared to 25.3% for the third quarter of 2019. The decreased effective tax rate for the third quarter of 2020 was primarily a result of an increase in 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 – including the statement regarding the prospective impact of COVID-19 and our plans to close three branches – 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. The following factors, among others, could cause the Company’s actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in
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.
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, provision for unfunded lending commitments 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 and gain on debt extinguishment, 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 non-GAAP tables.
About Lakeland
President & CEO
EVP & CFO
973-697-2000
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
INCOME STATEMENT | |||||||||||||||||||
Net interest income | $ | 52,134 | $ | 48,682 | $ | 152,552 | $ | 146,486 | |||||||||||
Provision for loan losses | (8,000 | ) | (536 | ) | (26,223 | ) | (1,044 | ) | |||||||||||
Gains on sales of investment securities | — | — | 342 | — | |||||||||||||||
Gains on sales of loans | 1,437 | 486 | 2,562 | 1,285 | |||||||||||||||
Gain (loss) on equity securities | (170 | ) | 72 | (625 | ) | 525 | |||||||||||||
Other noninterest income | 5,506 | 6,142 | 17,986 | 17,002 | |||||||||||||||
Long-term debt prepayment fee | — | — | (356 | ) | — | ||||||||||||||
Merger-related expenses | — | — | — | (3,178 | ) | ||||||||||||||
Other noninterest expense | (32,097 | ) | (29,563 | ) | (95,707 | ) | (92,055 | ) | |||||||||||
Pretax income | 18,810 | 25,283 | 50,531 | 69,021 | |||||||||||||||
Provision for income taxes | (4,383 | ) | (6,409 | ) | (11,861 | ) | (17,064 | ) | |||||||||||
Net income | $ | 14,427 | $ | 18,874 | $ | 38,670 | $ | 51,957 | |||||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Diluted earnings per common share | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.375 | $ | 0.365 | |||||||||||
Weighted average shares - basic | 50,526 | 50,553 | 50,544 | 50,447 | |||||||||||||||
Weighted average shares - diluted | 50,620 | 50,694 | 50,645 | 50,595 | |||||||||||||||
SELECTED OPERATING RATIOS | |||||||||||||||||||
Annualized return on average assets | 0.76 | % | 1.17 | % | 0.73 | % | 1.11 | % | |||||||||||
Annualized return on average common equity | 7.64 | % | 10.61 | % | 6.95 | % | 10.07 | % | |||||||||||
Annualized return on average tangible common equity (1) | 9.71 | % | 13.74 | % | 8.86 | % | 13.11 | % | |||||||||||
Annualized yield on interest-earning assets | 3.49 | % | 4.32 | % | 3.77 | % | 4.41 | % | |||||||||||
Annualized cost of interest-bearing liabilities | 0.72 | % | 1.41 | % | 0.91 | % | 1.39 | % | |||||||||||
Annualized net interest spread | 2.77 | % | 2.91 | % | 2.86 | % | 3.02 | % | |||||||||||
Annualized net interest margin | 2.96 | % | 3.25 | % | 3.09 | % | 3.35 | % | |||||||||||
Efficiency ratio (1) | 53.96 | % | 52.77 | % | 54.95 | % | 55.05 | % | |||||||||||
Stockholders' equity to total assets | 10.02 | % | 10.99 | % | |||||||||||||||
Book value per common share | $ | 14.93 | $ | 14.13 | |||||||||||||||
Tangible book value per common share (1) | $ | 11.77 | $ | 10.94 | |||||||||||||||
Tangible common equity to tangible assets (1) | 8.06 | % | 8.72 | % | |||||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.11 | % | 0.78 | % | |||||||||||||||
Non-performing loans to total loans | 0.57 | % | 0.32 | % | |||||||||||||||
Non-performing assets to total assets | 0.44 | % | 0.26 | % | |||||||||||||||
Annualized net charge-offs to average loans | 0.02 | % | — | % | |||||||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||||||
Loans | $ | 5,843,591 | $ | 4,923,414 | |||||||||||||||
Allowance for loan losses | 65,242 | 38,655 | |||||||||||||||||
Investment securities | 909,535 | 905,078 | |||||||||||||||||
Total assets | 7,522,184 | 6,492,474 | |||||||||||||||||
Total deposits | 6,266,516 | 5,210,619 | |||||||||||||||||
Short-term borrowings | 97,874 | 199,326 | |||||||||||||||||
Other borrowings | 253,359 | 284,029 | |||||||||||||||||
Stockholders' equity | 753,572 | 713,204 | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||||||
Loans | $ | 5,775,093 | $ | 4,937,488 | $ | 5,519,621 | $ | 4,908,952 | |||||||||||
Investment securities | 873,066 | 869,734 | 881,332 | 860,840 | |||||||||||||||
Interest-earning assets | 7,009,939 | 5,947,645 | 6,599,481 | 5,852,919 | |||||||||||||||
Total assets | 7,516,069 | 6,379,675 | 7,073,438 | 6,273,860 | |||||||||||||||
Noninterest-bearing demand deposits | 1,475,422 | 1,100,413 | 1,317,195 | 1,080,235 | |||||||||||||||
Savings deposits | 548,662 | 494,377 | 523,653 | 503,260 | |||||||||||||||
Interest-bearing transaction accounts | 3,086,260 | 2,678,424 | 2,942,307 | 2,599,004 | |||||||||||||||
Time deposits | 1,176,181 | 964,159 | 1,048,115 | 938,751 | |||||||||||||||
Total deposits | 6,286,525 | 5,237,373 | 5,831,270 | 5,121,250 | |||||||||||||||
Short-term borrowings | 58,845 | 74,042 | 100,303 | 104,450 | |||||||||||||||
Other borrowings | 269,093 | 287,839 | 273,567 | 292,447 | |||||||||||||||
Total interest-bearing liabilities | 5,139,042 | 4,498,841 | 4,887,945 | 4,437,912 | |||||||||||||||
Stockholders' equity | 751,099 | 705,726 | 743,318 | 689,538 | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Loans and net deferred fees and costs | $ | 56,801 | $ | 58,563 | $ | 170,483 | $ | 175,324 | |||||||||||
Federal funds sold and interest-bearing deposits with banks | 92 | 695 | 287 | 1,297 | |||||||||||||||
Taxable investment securities and other | 4,139 | 5,007 | 14,131 | 14,865 | |||||||||||||||
Tax exempt investment securities | 401 | 361 | 1,082 | 1,165 | |||||||||||||||
TOTAL INTEREST INCOME | 61,433 | 64,626 | 185,983 | 192,651 | |||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 7,012 | 13,267 | 25,969 | 37,526 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 27 | 231 | 531 | 1,333 | |||||||||||||||
Other borrowings | 2,260 | 2,446 | 6,931 | 7,306 | |||||||||||||||
TOTAL INTEREST EXPENSE | 9,299 | 15,944 | 33,431 | 46,165 | |||||||||||||||
NET INTEREST INCOME | 52,134 | 48,682 | 152,552 | 146,486 | |||||||||||||||
Provision for loan losses | 8,000 | 536 | 26,223 | 1,044 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 44,134 | 48,146 | 126,329 | 145,442 | |||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 2,288 | 2,851 | 6,663 | 8,179 | |||||||||||||||
Commissions and fees | 1,667 | 1,545 | 4,503 | 4,682 | |||||||||||||||
Income on bank owned life insurance | 670 | 691 | 2,000 | 2,064 | |||||||||||||||
(Loss) gain on equity securities | (170 | ) | 72 | (625 | ) | 525 | |||||||||||||
Gains on sales of loans | 1,437 | 486 | 2,562 | 1,285 | |||||||||||||||
Gains on sales of investment securities | — | — | 342 | — | |||||||||||||||
Swap income | 624 | 730 | 4,234 | 1,585 | |||||||||||||||
Other income | 257 | 325 | 586 | 492 | |||||||||||||||
TOTAL NONINTEREST INCOME | 6,773 | 6,700 | 20,265 | 18,812 | |||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Salaries and employee benefit expense | 19,694 | 19,062 | 60,198 | 57,672 | |||||||||||||||
Net occupancy expense | 2,692 | 2,767 | 8,016 | 8,350 | |||||||||||||||
Furniture and equipment expense | 2,890 | 2,084 | 8,233 | 6,365 | |||||||||||||||
625 | (420 | ) | 1,373 | 431 | |||||||||||||||
Stationary, supplies and postage expense | 488 | 366 | 1,268 | 1,214 | |||||||||||||||
Marketing expense | 381 | 423 | 840 | 1,430 | |||||||||||||||
Data processing expense | 1,211 | 1,248 | 3,900 | 3,800 | |||||||||||||||
Telecommunications expense | 501 | 480 | 1,399 | 1,451 | |||||||||||||||
ATM and debit card expense | 615 | 588 | 1,738 | 1,773 | |||||||||||||||
Core deposit intangible amortization | 250 | 288 | 776 | 893 | |||||||||||||||
Other real estate owned and other repossessed assets expense (income) | (2 | ) | 29 | 53 | 223 | ||||||||||||||
Long-term debt prepayment fee | — | — | 356 | — | |||||||||||||||
Merger-related expenses | — | — | — | 3,178 | |||||||||||||||
Other expenses | 2,752 | 2,648 | 7,913 | 8,453 | |||||||||||||||
TOTAL NONINTEREST EXPENSE | 32,097 | 29,563 | 96,063 | 95,233 | |||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 18,810 | 25,283 | 50,531 | 69,021 | |||||||||||||||
Provision for income taxes | 4,383 | 6,409 | 11,861 | 17,064 | |||||||||||||||
NET INCOME | $ | 14,427 | $ | 18,874 | $ | 38,670 | $ | 51,957 | |||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||
Basic | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
Diluted | $ | 0.28 | $ | 0.37 | $ | 0.76 | $ | 1.02 | |||||||||||
DIVIDENDS PAID PER COMMON SHARE | $ | 0.125 | $ | 0.125 | $ | 0.375 | $ | 0.365 |
Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash | $ | 314,591 | $ | 275,794 | ||||
Interest-bearing deposits due from banks | 31,337 | 6,577 | ||||||
Total cash and cash equivalents | 345,928 | 282,371 | ||||||
Investment securities available for sale, at fair value | 783,331 | 755,900 | ||||||
Equity securities, at fair value | 14,076 | 16,473 | ||||||
Investment securities held to maturity; fair value of | 97,893 | 123,975 | ||||||
14,235 | 22,505 | |||||||
Loans held for sale | 4,197 | 1,743 | ||||||
Loans, net of deferred fees | 5,843,591 | 5,137,823 | ||||||
Less: Allowance for loan losses | 65,242 | 40,003 | ||||||
Net loans and leases | 5,778,349 | 5,097,820 | ||||||
Premises and equipment, net | 47,810 | 47,608 | ||||||
Operating lease right-of-use assets | 17,028 | 18,282 | ||||||
Accrued interest receivable | 21,480 | 16,832 | ||||||
156,277 | 156,277 | |||||||
Other identifiable intangible assets | 3,538 | 4,314 | ||||||
Bank owned life insurance | 114,418 | 112,392 | ||||||
Other assets | 123,624 | 54,744 | ||||||
TOTAL ASSETS | $ | 7,522,184 | $ | 6,711,236 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,474,847 | $ | 1,124,121 | ||||
Savings and interest-bearing transaction accounts | 3,647,328 | 3,298,854 | ||||||
Time deposits | 961,402 | 652,144 | ||||||
Time deposits over | 182,939 | 218,660 | ||||||
Total deposits | 6,266,516 | 5,293,779 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 97,874 | 328,658 | ||||||
Other borrowings | 135,111 | 165,816 | ||||||
Subordinated debentures | 118,248 | 118,220 | ||||||
Operating lease liabilities | 18,471 | 19,814 | ||||||
Other liabilities | 132,392 | 59,686 | ||||||
TOTAL LIABILITIES | 6,768,612 | 5,985,973 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, no par value; authorized shares, 100,000,000; issued shares 50,598,670 and outstanding shares 50,467,635 at September 30, 2020 and issued and outstanding shares 50,498,410 at | 561,817 | 560,263 | ||||||
Retained earnings | 182,329 | 162,752 | ||||||
(1,452 | ) | — | ||||||
Accumulated other comprehensive income | 10,878 | 2,248 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 753,572 | 725,263 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,522,184 | $ | 6,711,236 |
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||
Net interest income | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | $ | 48,682 | ||||||||||
Provision for loan losses | (8,000 | ) | (9,000 | ) | (9,223 | ) | (1,086 | ) | (536 | ) | ||||||||||
Gains on sales of investment securities | — | — | 342 | — | — | |||||||||||||||
Gains on sales of loans | 1,437 | 710 | 415 | 375 | 486 | |||||||||||||||
(Loss) gain on equity securities | (170 | ) | 198 | (653 | ) | (29 | ) | 72 | ||||||||||||
Other noninterest income | 5,506 | 4,573 | 7,907 | 7,638 | 6,142 | |||||||||||||||
Long-term debt prepayment fee | — | — | (356 | ) | — | — | ||||||||||||||
Merger-related expenses | — | — | — | — | — | |||||||||||||||
Other noninterest expense | (32,097 | ) | (31,462 | ) | (32,148 | ) | (31,523 | ) | (29,563 | ) | ||||||||||
Pretax income | 18,810 | 15,538 | 16,183 | 24,923 | 25,283 | |||||||||||||||
Provision for income taxes | (4,383 | ) | (3,687 | ) | (3,791 | ) | (6,208 | ) | (6,409 | ) | ||||||||||
Net income | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | $ | 18,874 | ||||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | $ | 0.37 | ||||||||||
Diluted earnings per common share | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | $ | 0.37 | ||||||||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | ||||||||||
Dividends paid | $ | 6,365 | $ | 6,365 | $ | 6,364 | $ | 6,363 | $ | 6,362 | ||||||||||
Weighted average shares - basic | 50,526 | 50,522 | 50,586 | 50,566 | 50,553 | |||||||||||||||
Weighted average shares - diluted | 50,620 | 50,593 | 50,728 | 50,748 | 50,694 | |||||||||||||||
SELECTED OPERATING RATIOS | ||||||||||||||||||||
Annualized return on average assets | 0.76 | % | 0.67 | % | 0.76 | % | 1.15 | % | 1.17 | % | ||||||||||
Annualized return on average common equity | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | 10.61 | % | ||||||||||
Annualized return on average tangible common equity (1) | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | 13.74 | % | ||||||||||
Annualized net interest margin | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | 3.25 | % | ||||||||||
Efficiency ratio (1) | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % | 52.77 | % | ||||||||||
Common stockholders' equity to total assets | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | 10.99 | % | ||||||||||
Tangible common equity to tangible assets (1) | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | 8.72 | % | ||||||||||
Tier 1 risk-based ratio | 10.34 | % | 10.45 | % | 10.61 | % | 11.02 | % | 11.24 | % | ||||||||||
Total risk-based ratio | 12.93 | % | 12.98 | % | 13.04 | % | 13.40 | % | 13.70 | % | ||||||||||
Tier 1 leverage ratio | 8.36 | % | 8.69 | % | 9.38 | % | 9.41 | % | 9.34 | % | ||||||||||
Common equity tier 1 capital ratio | 9.83 | % | 9.93 | % | 10.08 | % | 10.46 | % | 10.66 | % | ||||||||||
Book value per common share | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | $ | 14.13 | ||||||||||
Tangible book value per common share (1) | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 | $ | 10.94 | ||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures |
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||
Loans | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | $ | 4,925,998 | |||||
Allowance for loan losses | 65,242 | 57,839 | 48,884 | 40,003 | 38,655 | ||||||||||
Investment securities | 909,535 | 957,985 | 974,319 | 918,853 | 905,078 | ||||||||||
Total assets | 7,522,184 | 7,488,516 | 7,013,908 | 6,711,236 | 6,492,474 | ||||||||||
Total deposits | 6,266,516 | 6,125,502 | 5,455,138 | 5,293,779 | 5,210,619 | ||||||||||
Short-term borrowings | 97,874 | 183,116 | 419,085 | 328,658 | 199,326 | ||||||||||
Other borrowings | 253,359 | 273,954 | 258,944 | 284,036 | 284,029 | ||||||||||
Stockholders' equity | 753,572 | 745,489 | 736,922 | 725,263 | 713,204 | ||||||||||
LOANS | |||||||||||||||
Commercial, real estate | $ | 4,326,074 | $ | 4,260,917 | $ | 4,073,911 | $ | 3,924,762 | $ | 3,749,413 | |||||
Commercial, industrial and other | 426,821 | 402,239 | 467,346 | 431,934 | 391,486 | ||||||||||
Paycheck Protection Program | 325,115 | 325,999 | — | — | — | ||||||||||
Equipment financing | 116,410 | 115,651 | 116,421 | 111,076 | 104,689 | ||||||||||
Residential mortgages | 342,583 | 334,455 | 334,114 | 335,191 | 337,482 | ||||||||||
Consumer and home equity | 318,021 | 329,866 | 340,071 | 337,977 | 342,928 | ||||||||||
Total loans | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | $ | 4,925,998 | |||||
DEPOSITS | |||||||||||||||
Noninterest-bearing | $ | 1,474,847 | $ | 1,486,273 | $ | 1,129,695 | $ | 1,124,121 | $ | 1,101,083 | |||||
Savings and interest-bearing transaction accounts | 3,647,328 | 3,510,723 | 3,241,397 | 3,298,854 | 3,196,323 | ||||||||||
Time deposits | 1,144,341 | 1,128,506 | 1,084,046 | 870,804 | 913,213 | ||||||||||
Total deposits | $ | 6,266,516 | $ | 6,125,502 | $ | 5,455,138 | $ | 5,293,779 | $ | 5,210,619 | |||||
Total loans to total deposits ratio | 93.4 | % | 94.2 | % | 97.7 | % | 97.1 | % | 94.5 | % | |||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||
Loans | $ | 5,775,093 | $ | 5,572,865 | $ | 5,208,097 | $ | 5,025,377 | $ | 4,937,488 | |||||
Investment securities | 873,066 | 891,037 | 879,987 | 894,698 | 869,734 | ||||||||||
Interest-earning assets | 7,009,939 | 6,650,993 | 6,133,003 | 6,022,525 | 5,947,645 | ||||||||||
Total assets | 7,516,069 | 7,137,529 | 6,565,302 | 6,470,082 | 6,379,675 | ||||||||||
Noninterest-bearing demand deposits | 1,475,422 | 1,364,785 | 1,109,638 | 1,130,192 | 1,100,413 | ||||||||||
Savings deposits | 548,662 | 525,224 | 496,798 | 492,903 | 494,377 | ||||||||||
Interest-bearing transaction accounts | 3,086,260 | 2,908,299 | 2,830,778 | 2,814,831 | 2,678,424 | ||||||||||
Time deposits | 1,176,181 | 1,093,760 | 872,998 | 873,924 | 964,159 | ||||||||||
Total deposits | 6,286,525 | 5,892,068 | 5,310,212 | 5,311,850 | 5,237,373 | ||||||||||
Short-term borrowings | 58,845 | 82,694 | 159,825 | 67,097 | 74,042 | ||||||||||
Other borrowings | 269,093 | 273,904 | 277,753 | 284,049 | 287,839 | ||||||||||
Total interest-bearing liabilities | 5,139,042 | 4,883,881 | 4,638,152 | 4,532,804 | 4,498,841 | ||||||||||
Stockholders' equity | 751,099 | 742,050 | 736,719 | 719,292 | 705,726 |
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) AND COSTS | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Loans | 3.91 | % | 4.03 | % | 4.47 | % | 4.60 | % | 4.71 | % | ||||||||||
Taxable investment securities and other | 2.09 | % | 2.31 | % | 2.56 | % | 2.34 | % | 2.50 | % | ||||||||||
Tax-exempt securities | 2.55 | % | 2.70 | % | 2.67 | % | 2.69 | % | 2.70 | % | ||||||||||
Federal funds sold and interest-bearing cash accounts | 0.10 | % | 0.08 | % | 1.42 | % | 1.65 | % | 1.98 | % | ||||||||||
Total interest-earning assets | 3.49 | % | 3.69 | % | 4.17 | % | 4.21 | % | 4.32 | % | ||||||||||
LIABILITIES | ||||||||||||||||||||
Savings accounts | 0.06 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.06 | % | ||||||||||
Interest-bearing transaction accounts | 0.44 | % | 0.55 | % | 0.97 | % | 1.05 | % | 1.24 | % | ||||||||||
Time deposits | 1.19 | % | 1.48 | % | 1.81 | % | 1.93 | % | 2.00 | % | ||||||||||
Borrowings | 2.73 | % | 2.62 | % | 2.54 | % | 2.86 | % | 2.89 | % | ||||||||||
Total interest-bearing liabilities | 0.72 | % | 0.86 | % | 1.18 | % | 1.26 | % | 1.41 | % | ||||||||||
Net interest spread (taxable equivalent basis) | 2.77 | % | 2.83 | % | 2.99 | % | 2.96 | % | 2.91 | % | ||||||||||
Annualized net interest margin (taxable equivalent basis) | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | 3.25 | % | ||||||||||
Annualized cost of deposits | 0.44 | % | 0.55 | % | 0.82 | % | 0.88 | % | 1.00 | % | ||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 57,839 | $ | 48,884 | $ | 40,003 | $ | 38,655 | $ | 38,662 | ||||||||||
Provision for loan losses | 8,000 | 9,000 | 9,223 | 1,086 | 536 | |||||||||||||||
Charge-offs | (682 | ) | (142 | ) | (483 | ) | (198 | ) | (809 | ) | ||||||||||
Recoveries | 85 | 97 | 141 | 460 | 266 | |||||||||||||||
Balance at end of period | $ | 65,242 | $ | 57,839 | $ | 48,884 | $ | 40,003 | $ | 38,655 | ||||||||||
NET LOAN CHARGE-OFFS (RECOVERIES) | ||||||||||||||||||||
Commercial, real estate | $ | 298 | $ | (36 | ) | $ | 111 | $ | (18 | ) | $ | 203 | ||||||||
Commercial, industrial and other | 173 | (13 | ) | (31 | ) | 13 | 393 | |||||||||||||
Equipment financing | 95 | (11 | ) | 71 | (297 | ) | — | |||||||||||||
Residential mortgages | (1 | ) | — | 96 | — | (55 | ) | |||||||||||||
Consumer and home equity | 32 | 105 | 95 | 40 | 2 | |||||||||||||||
Net charge-offs (recoveries) | $ | 597 | $ | 45 | $ | 342 | $ | (262 | ) | $ | 543 | |||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Commercial, real estate | $ | 26,145 | $ | 25,615 | $ | 24,770 | $ | 13,281 | $ | 9,164 | ||||||||||
Commercial, industrial and other | 1,484 | 1,546 | 1,909 | 1,539 | 795 | |||||||||||||||
Equipment financing | 444 | 400 | 199 | 284 | 271 | |||||||||||||||
Residential mortgages | 2,695 | 2,860 | 2,837 | 3,428 | 3,250 | |||||||||||||||
Consumer and home equity | 2,322 | 2,432 | 2,689 | 2,606 | 2,437 | |||||||||||||||
Total non-accrual loans | 33,090 | 32,853 | 32,404 | 21,138 | 15,917 | |||||||||||||||
Property acquired through foreclosure or repossession | — | 354 | 393 | 563 | 944 | |||||||||||||||
Total non-performing assets | $ | 33,090 | $ | 33,207 | $ | 32,797 | $ | 21,701 | $ | 16,861 | ||||||||||
Loans past due 90 days or more and still accruing | $ | 165 | $ | 58 | $ | 99 | $ | — | $ | — | ||||||||||
Loans restructured and still accruing | $ | 4,299 | $ | 4,667 | $ | 4,719 | $ | 5,650 | $ | 5,029 | ||||||||||
Ratio of allowance for loan losses to total loans | 1.11 | % | 1.00 | % | 0.92 | % | 0.78 | % | 0.78 | % | ||||||||||
Total non-accrual loans to total loans | 0.57 | % | 0.57 | % | 0.61 | % | 0.41 | % | 0.32 | % | ||||||||||
Total non-performing assets to total assets | 0.44 | % | 0.44 | % | 0.47 | % | 0.32 | % | 0.26 | % | ||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.04 | % | — | % | 0.03 | % | (0.02 | ) | % | 0.04 | % |
Supplemental Information - Non-GAAP Financial Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
At or for the Quarter Ended | ||||||||||||||||||||
(Dollars in thousands, except ratios and per share amounts) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | ||||||||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 753,572 | $ | 745,489 | $ | 736,922 | $ | 725,263 | $ | 713,204 | ||||||||||
Less: | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 3,538 | 3,788 | 4,049 | 4,314 | 4,602 | |||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | $ | 552,325 | ||||||||||
Shares outstanding at end of period | 50,468 | 50,463 | 50,462 | 50,498 | 50,489 | |||||||||||||||
Book value per share - GAAP | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | $ | 14.13 | ||||||||||
Tangible book value per share - Non-GAAP | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 | $ | 10.94 | ||||||||||
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | ||||||||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | $ | 552,325 | ||||||||||
Total assets at end of period - GAAP | $ | 7,522,184 | $ | 7,488,516 | $ | 7,013,908 | $ | 6,711,236 | $ | 6,492,474 | ||||||||||
Less: | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | |||||||||||||||
Less: Other identifiable intangible assets | 3,538 | 3,788 | 4,049 | 4,314 | 4,602 | |||||||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 7,362,369 | $ | 7,328,451 | $ | 6,853,582 | $ | 6,550,645 | $ | 6,331,595 | ||||||||||
Common equity to assets - GAAP | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | 10.99 | % | ||||||||||
Tangible common equity to tangible assets - Non-GAAP | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | 8.72 | % | ||||||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||||
Net income - GAAP | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | $ | 18,874 | ||||||||||
Total average common stockholders' equity - GAAP | $ | 751,099 | $ | 742,050 | $ | 736,719 | $ | 719,292 | $ | 705,726 | ||||||||||
Less: Average goodwill | 156,277 | 156,277 | 156,277 | 156,277 | 155,835 | |||||||||||||||
Less: Average other identifiable intangible assets | 3,689 | 3,942 | 4,205 | 4,468 | 4,761 | |||||||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 591,133 | $ | 581,831 | $ | 576,237 | $ | 558,547 | $ | 545,130 | ||||||||||
Return on average common stockholders' equity - GAAP | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | 10.61 | % | ||||||||||
Return on average tangible common stockholders' equity - Non-GAAP | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | 13.74 | % | ||||||||||
CALCULATION OF EFFICIENCY RATIO | ||||||||||||||||||||
Total noninterest expense | $ | 32,097 | $ | 31,462 | $ | 32,504 | $ | 31,523 | $ | 29,563 | ||||||||||
Amortization of core deposit intangibles | (250 | ) | (261 | ) | (265 | ) | (289 | ) | (288 | ) | ||||||||||
Long term debt prepayment fees | $ | — | $ | — | $ | (356 | ) | |||||||||||||
Noninterest expense, as adjusted | $ | 31,847 | $ | 31,201 | $ | 31,883 | $ | 31,234 | $ | 29,275 | ||||||||||
Net interest income | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | $ | 48,682 | ||||||||||
Total noninterest income | 6,773 | 5,481 | 8,011 | 7,984 | 6,700 | |||||||||||||||
Total revenue | 58,907 | 56,000 | 57,910 | 57,532 | 55,382 | |||||||||||||||
Tax-equivalent adjustment on municipal securities | 108 | 93 | 88 | 91 | 97 | |||||||||||||||
(Gains) on sales of investment securities | — | — | (342 | ) | — | — | ||||||||||||||
Total revenue, as adjusted | $ | 59,015 | $ | 56,093 | $ | 57,656 | $ | 57,623 | $ | 55,479 | ||||||||||
Efficiency ratio - Non-GAAP | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % | 52.77 | % |
Supplemental Information - Non-GAAP Financial Measures | |||||||||
(Unaudited) | |||||||||
For the Nine Months Ended | |||||||||
(Dollars in thousands) | 2020 | 2019 | |||||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | |||||||||
Net income - GAAP | $ | 38,670 | $ | 51,957 | |||||
Total average common stockholders' equity - GAAP | $ | 743,318 | $ | 689,538 | |||||
Less: Average goodwill | $ | 156,277 | $ | 154,531 | |||||
Less: Average other identifiable intangible assets | $ | 3,944 | $ | 5,022 | |||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 583,097 | $ | 529,985 | |||||
Return on average common stockholders' equity - GAAP | 6.95 | % | 10.07 | % | |||||
Return on average tangible common stockholders' equity - Non-GAAP | 8.86 | % | 13.11 | % | |||||
CALCULATION OF EFFICIENCY RATIO | |||||||||
Total noninterest expense | $ | 96,063 | $ | 95,233 | |||||
Amortization of core deposit intangibles | $ | (776 | ) | $ | (893 | ) | |||
Long-term debt prepayment fee | $ | (356 | ) | $ | — | ||||
Merger-related expenses | $ | — | $ | (3,178 | ) | ||||
Noninterest expense, as adjusted | $ | 94,931 | $ | 91,162 | |||||
Net interest income | $ | 152,552 | $ | 146,486 | |||||
Noninterest income | $ | 20,265 | $ | 18,812 | |||||
Total revenue | $ | 172,817 | $ | 165,298 | |||||
Tax-equivalent adjustment on municipal securities | $ | 289 | $ | 310 | |||||
Gains on sales of investment securities | $ | (342 | ) | $ | — | ||||
Total revenue, as adjusted | $ | 172,764 | $ | 165,608 | |||||
Efficiency ratio - Non-GAAP | 54.95 | % | 55.05 | % |
Source:
2020 GlobeNewswire, Inc., source