Highlights for the Fourth Quarter of 2023
- Operating earnings1 of
$6.9 million , or$0.41 per diluted common share - Net organic loan and lease growth of
$66 million - 8% annualized quarter-over-quarter increase - Credit quality remains solid with nonperforming assets to total assets of 0.20%
- Deposit growth of
$21.3 million – 2.0% annualized quarter-over-quarter increase SmartFinancial celebrates successful debut on theNew York Stock Exchange - Chief Banking Officer position added in fourth quarter 2023
SmartBank President and CEO elected toFederal Reserve Bank of Atlanta’s Board of Directors
Net Interest Income and Net Interest Margin
Net interest income was
The tax equivalent net interest margin was 2.86% for the fourth quarter of 2023, compared to 2.81% for the prior quarter. The tax equivalent net interest margin was positively impacted by the increased yield on interest-earning assets coupled with a slower rise in the cost of interest-bearing liabilities, quarter over quarter. The yield on loans and leases, excluding loan fees, was 5.61% for the fourth quarter, compared to 5.52% for the prior quarter.
The cost of total deposits for the fourth quarter of 2023 was 2.35% compared to 2.20% in the prior quarter. The cost of interest-bearing liabilities increased to 3.07% for the fourth quarter of 2023, compared to 2.89% for the prior quarter. The cost of average interest-bearing deposits was 3.00% for the fourth quarter of 2023, compared to 2.84% for the prior quarter, an increase of 16 basis points.
The following table presents selected interest rates and yields for the periods indicated:
Three Months Ended | |||||||
Dec | Sep | Increase | |||||
Selected Interest Rates and Yields | 2023 | 2023 | (Decrease) | ||||
Yield on loans and leases, excluding loan fees | 5.61 | % | 5.52 | % | 0.09 | % | |
Yield on loans and leases | 5.68 | % | 5.61 | % | 0.07 | % | |
Yield on earning assets, on a fully tax equivalent basis (FTE) | 5.22 | % | 4.99 | % | 0.23 | % | |
Cost of interest-bearing deposits | 3.00 | % | 2.84 | % | 0.16 | % | |
Cost of total deposits | 2.35 | % | 2.20 | % | 0.15 | % | |
Cost of interest-bearing liabilities | 3.07 | % | 2.89 | % | 0.18 | % | |
Net interest margin, FTE | 2.86 | % | 2.81 | % | 0.05 | % |
Provision for Credit Losses on Loans and Leases and Credit Quality
At
The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):
Three Months Ended | ||||||||||||||
Dec | Sep | |||||||||||||
Provision for Credit Losses on Loans and Leases Rollforward | 2023 | 2023 | Change | |||||||||||
Beginning balance | $ | 33,687 | $ | 32,747 | $ | 940 | ||||||||
Charge-offs | (424 | ) | (417 | ) | (7 | ) | ||||||||
Recoveries | 302 | 73 | 229 | |||||||||||
Net (charge-offs) recoveries | (122 | ) | (344 | ) | 222 | |||||||||
Provision for credit losses(1) | 1,501 | 1,284 | 217 | |||||||||||
Ending balance | $ | 35,066 | $ | 33,687 | $ | 1,379 | ||||||||
Allowance for credit losses to total loans and leases, gross | 1.02 | % | 1.00 | % | 0.02 | % |
(1) The current quarter-ended and prior quarter-ended, excludes unfunded commitments provision of
Nonperforming loans and leases as a percentage of total loans and leases was 0.24% as of
The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):
Three Months Ended | ||||||||||||
Dec | Sep | Increase | ||||||||||
Credit Quality | 2023 | 2023 | (Decrease) | |||||||||
Nonaccrual loans and leases | $ | 7,931 | $ | 3,934 | $ | 3,997 | ||||||
Loans and leases past due 90 days or more and still accruing | 170 | 229 | (59 | ) | ||||||||
Total nonperforming loans and leases | 8,101 | 4,163 | 3,938 | |||||||||
Other real estate owned | 517 | 1,370 | (853 | ) | ||||||||
Other repossessed assets | 1,117 | 348 | 769 | |||||||||
Total nonperforming assets | $ | 9,735 | $ | 5,881 | $ | 3,854 | ||||||
Nonperforming loans and leases to total loans and leases, gross | 0.24 | % | 0.12 | % | 0.12 | % | ||||||
Nonperforming assets to total assets | 0.20 | % | 0.12 | % | 0.08 | % |
Noninterest Income
Noninterest income increased
The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):
Three Months Ended | |||||||||||
Dec | Sep | Increase | |||||||||
Noninterest Income | 2023 | 2023 | (Decrease) | ||||||||
Service charges on deposit accounts | $ | 1,673 | $ | 1,736 | $ | (63 | ) | ||||
Gain (loss) on sale of securities, net | - | (6,801 | ) | 6,801 | |||||||
Mortgage banking income | 227 | 309 | (82 | ) | |||||||
Investment services | 1,339 | 1,461 | (122 | ) | |||||||
Insurance commissions | 1,133 | 1,153 | (20 | ) | |||||||
Interchange and debit card transaction fees | 1,370 | 1,357 | 13 | ||||||||
Other | 1,837 | 1,476 | 361 | ||||||||
Total noninterest income | $ | 7,579 | $ | 691 | $ | 6,888 |
Noninterest Expense
Noninterest expense increased
The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):
Three Months Ended | ||||||||||
Dec | Sep | Increase | ||||||||
Noninterest Expense | 2023 | 2023 | (Decrease) | |||||||
Salaries and employee benefits | $ | 16,275 | $ | 16,785 | $ | (510 | ) | |||
Occupancy and equipment | 3,378 | 3,547 | (169 | ) | ||||||
915 | 825 | 90 | ||||||||
Other real estate and loan related expenses | 781 | 603 | 178 | |||||||
Advertising and marketing | 336 | 346 | (10 | ) | ||||||
Data processing and technology | 2,458 | 2,378 | 80 | |||||||
Professional services | 1,136 | 735 | 401 | |||||||
Amortization of intangibles | 643 | 647 | (4 | ) | ||||||
Merger related and restructuring expenses | - | 110 | (110 | ) | ||||||
Other | 3,773 | 2,540 | 1,233 | |||||||
Total noninterest expense | $ | 29,695 | $ | 28,516 | $ | 1,179 |
Income Tax Expense
Income tax expense was
The effective tax rate was 20.95% for the fourth quarter of 2023 and 13.37% for the prior quarter. The primary reason for the 7.58% increase in the effective tax rate was due to lower earnings in the prior quarter, largely from the
Balance Sheet Trends
Total assets at
Total liabilities increased to
Shareholders' equity at
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation
The following table presents selected balance sheet information for the periods indicated (dollars in thousands):
Dec | Dec | Increase | ||||||||
Selected Balance Sheet Information | 2023 | 2022 | (Decrease) | |||||||
Total assets | $ | 4,829,387 | $ | 4,637,498 | $ | 191,889 | ||||
Total liabilities | 4,369,501 | 4,205,046 | 164,455 | |||||||
Total equity | 459,886 | 432,452 | 27,434 | |||||||
Securities | 689,646 | 769,842 | (80,196 | ) | ||||||
Loans and leases | 3,444,462 | 3,253,627 | 190,835 | |||||||
Deposits | 4,267,854 | 4,077,100 | 190,754 | |||||||
Borrowings | 13,078 | 41,860 | (28,782 | ) |
Board of Directors Declares Dividend
On
Conference Call Information
About
Source | |
Investor Contacts | |
President & CEO | |
(865) 868-0613 billy.carroll@smartbank.com | |
Executive Vice President, Chief Financial Officer | |
(865) 437-5724 ron.gorczynski@smartbank.com | |
Media Contact | |
Senior Vice President, Public Relations & Marketing | |
(865) 868-0611 kelley.fowler@smartbank.com | |
Non-GAAP Financial Measures
Statements included in this earnings release include measures not recognized under
Forward-Looking Statements
This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
Ending Balances | ||||||||||||||||||||
Dec | Sep | Jun | Mar | Dec | ||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 352,271 | $ | 400,258 | $ | 238,898 | $ | 306,934 | $ | 266,424 | ||||||||||
Securities available-for-sale, at fair value | 408,410 | 385,131 | 540,308 | 560,418 | 483,893 | |||||||||||||||
Securities held-to-maturity, at amortized cost | 281,236 | 282,313 | 283,564 | 284,776 | 285,949 | |||||||||||||||
Other investments | 13,662 | 13,805 | 14,396 | 14,059 | 15,530 | |||||||||||||||
Loans held for sale | 4,418 | 2,734 | 986 | 3,324 | 1,752 | |||||||||||||||
Loans and leases | 3,444,462 | 3,378,999 | 3,337,790 | 3,281,787 | 3,253,627 | |||||||||||||||
Less: Allowance for credit losses | (35,066 | ) | (33,687 | ) | (32,747 | ) | (32,279 | ) | (23,334 | ) | ||||||||||
Loans and leases, net | 3,409,396 | 3,345,312 | 3,305,043 | 3,249,508 | 3,230,293 | |||||||||||||||
Premises and equipment, net | 92,963 | 92,020 | 92,351 | 92,190 | 92,511 | |||||||||||||||
Other real estate owned | 517 | 1,370 | 1,708 | 1,708 | 1,436 | |||||||||||||||
107,148 | 107,792 | 108,439 | 109,114 | 109,772 | ||||||||||||||||
Bank owned life insurance | 83,434 | 82,914 | 82,419 | 81,938 | 81,470 | |||||||||||||||
Other assets | 75,932 | 83,522 | 77,688 | 65,836 | 68,468 | |||||||||||||||
Total assets | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | $ | 4,769,805 | $ | 4,637,498 | ||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 898,044 | $ | 923,763 | $ | 1,003,432 | $ | 989,753 | $ | 1,072,449 | ||||||||||
Interest-bearing demand | 1,006,915 | 993,717 | 938,758 | 989,738 | 965,911 | |||||||||||||||
Money market and savings | 1,812,427 | 1,766,409 | 1,720,202 | 1,761,847 | 1,583,481 | |||||||||||||||
Time deposits | 550,468 | 562,620 | 537,192 | 488,208 | 455,259 | |||||||||||||||
Total deposits | 4,267,854 | 4,246,509 | 4,199,584 | 4,229,546 | 4,077,100 | |||||||||||||||
Borrowings | 13,078 | 14,117 | 15,496 | 16,546 | 41,860 | |||||||||||||||
Subordinated debt | 42,099 | 42,078 | 42,057 | 42,036 | 42,015 | |||||||||||||||
Other liabilities | 46,470 | 47,815 | 43,816 | 38,278 | 44,071 | |||||||||||||||
Total liabilities | 4,369,501 | 4,350,519 | 4,300,953 | 4,326,406 | 4,205,046 | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Common stock | 16,989 | 16,995 | 17,004 | 17,004 | 16,901 | |||||||||||||||
Additional paid-in capital | 295,699 | 295,542 | 295,296 | 294,930 | 294,330 | |||||||||||||||
Retained earnings | 173,105 | 168,271 | 167,564 | 160,085 | 156,545 | |||||||||||||||
Accumulated other comprehensive income (loss) | (25,907 | ) | (34,156 | ) | (35,017 | ) | (28,620 | ) | (35,324 | ) | ||||||||||
Total shareholders' equity | 459,886 | 446,652 | 444,847 | 443,399 | 432,452 | |||||||||||||||
Total liabilities & shareholders' equity | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | $ | 4,769,805 | $ | 4,637,498 |
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands except share and per share data)
Three Months Ended | Year Ended | ||||||||||||||||||||||
Dec | Sep | Jun | Mar | Dec | Dec | Dec | |||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans and leases, including fees | $ | 48,767 | $ | 47,539 | $ | 45,446 | $ | 44,728 | $ | 40,082 | $ | 186,479 | $ | 136,381 | |||||||||
Investment securities: | |||||||||||||||||||||||
Taxable | 4,344 | 4,335 | 4,335 | 3,651 | 3,337 | 16,665 | 11,799 | ||||||||||||||||
Tax-exempt | 352 | 356 | 357 | 353 | 797 | 1,418 | 2,166 | ||||||||||||||||
Federal funds sold and other earning assets | 4,032 | 3,045 | 1,956 | 4,446 | 3,098 | 13,481 | 8,488 | ||||||||||||||||
Total interest income | 57,495 | 55,275 | 52,094 | 53,178 | 47,314 | 218,043 | 158,834 | ||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | 24,926 | 23,433 | 19,554 | 16,346 | 8,844 | 84,260 | 18,228 | ||||||||||||||||
Borrowings | 162 | 210 | 339 | 224 | 232 | 936 | 602 | ||||||||||||||||
Subordinated debt | 890 | 626 | 626 | 626 | 626 | 2,767 | 2,503 | ||||||||||||||||
Total interest expense | 25,978 | 24,269 | 20,519 | 17,196 | 9,702 | 87,963 | 21,333 | ||||||||||||||||
Net interest income | 31,517 | 31,006 | 31,575 | 35,982 | 37,612 | 130,080 | 137,501 | ||||||||||||||||
Provision for credit losses | 1,571 | 795 | 113 | 550 | 788 | 3,029 | 4,018 | ||||||||||||||||
Net interest income after provision for credit losses | 29,946 | 30,211 | 31,462 | 35,432 | 36,824 | 127,051 | 133,483 | ||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service charges on deposit accounts | 1,673 | 1,736 | 1,657 | 1,445 | 1,477 | 6,511 | 5,853 | ||||||||||||||||
Gain (loss) on sale of securities, net | — | (6,801 | ) | — | — | 144 | (6,801 | ) | 144 | ||||||||||||||
Mortgage banking | 227 | 309 | 332 | 172 | 77 | 1,040 | 1,552 | ||||||||||||||||
Investment services | 1,339 | 1,461 | 1,300 | 1,005 | 958 | 5,105 | 4,144 | ||||||||||||||||
Insurance commissions | 1,133 | 1,153 | 1,139 | 1,259 | 1,233 | 4,684 | 3,595 | ||||||||||||||||
Interchange and debit card transaction fees | 1,370 | 1,357 | 1,347 | 1,383 | 1,328 | 5,457 | 5,435 | ||||||||||||||||
Other | 1,837 | 1,476 | 1,355 | 1,661 | 1,908 | 6,329 | 6,992 | ||||||||||||||||
Total noninterest income | 7,579 | 691 | 7,130 | 6,925 | 7,125 | 22,325 | 27,715 | ||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Salaries and employee benefits | 16,275 | 16,785 | 15,947 | 16,742 | 16,384 | 65,749 | 63,420 | ||||||||||||||||
Occupancy and equipment | 3,378 | 3,547 | 3,318 | 3,208 | 3,015 | 13,451 | 12,034 | ||||||||||||||||
915 | 825 | 875 | 541 | 650 | 3,156 | 2,672 | |||||||||||||||||
Other real estate and loan related expense | 781 | 603 | 441 | 572 | 517 | 2,397 | 2,446 | ||||||||||||||||
Advertising and marketing | 336 | 346 | 305 | 355 | 308 | 1,342 | 1,293 | ||||||||||||||||
Data processing and technology | 2,458 | 2,378 | 2,235 | 2,163 | 2,097 | 9,235 | 7,283 | ||||||||||||||||
Professional services | 1,136 | 735 | 764 | 807 | 981 | 3,443 | 3,790 | ||||||||||||||||
Amortization of intangibles | 643 | 647 | 675 | 659 | 688 | 2,624 | 2,607 | ||||||||||||||||
Merger related and restructuring expenses | — | 110 | — | — | (45 | ) | 110 | 562 | |||||||||||||||
Other | 3,773 | 2,540 | 2,850 | 2,482 | 2,821 | 11,643 | 10,183 | ||||||||||||||||
Total noninterest expense | 29,695 | 28,516 | 27,410 | 27,529 | 27,416 | 113,150 | 106,290 | ||||||||||||||||
Income before income taxes | 7,830 | 2,386 | 11,182 | 14,828 | 16,533 | 36,226 | 54,908 | ||||||||||||||||
Income tax expense | 1,640 | 319 | 2,346 | 3,328 | 3,529 | 7,633 | 11,886 | ||||||||||||||||
Net income | $ | 6,190 | $ | 2,067 | $ | 8,836 | $ | 11,500 | $ | 13,004 | $ | 28,593 | $ | 43,022 | |||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.12 | $ | 0.53 | $ | 0.69 | $ | 0.78 | $ | 1.70 | $ | 2.57 | |||||||||
Diluted | $ | 0.37 | $ | 0.12 | $ | 0.52 | $ | 0.68 | $ | 0.77 | $ | 1.69 | $ | 2.55 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 16,814,647 | 16,807,548 | 16,806,389 | 16,791,406 | 16,758,706 | 16,805,068 | 16,740,450 | ||||||||||||||||
Diluted | 16,918,234 | 16,918,635 | 16,898,091 | 16,896,494 | 16,884,253 | 16,911,185 | 16,871,369 |
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Three Months Ended | |||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||
Assets: | |||||||||||||||||||||||||
Loans and leases, including fees1 | $ | 3,408,430 | $ | 48,767 | 5.68 | % | $ | 3,360,678 | $ | 47,539 | 5.61 | % | $ | 3,150,493 | $ | 40,082 | 5.05 | % | |||||||
Taxable securities | 618,511 | 4,344 | 2.79 | % | 743,054 | 4,335 | 2.31 | % | 701,787 | 3,337 | 1.89 | % | |||||||||||||
Tax-exempt securities2 | 63,767 | 445 | 2.77 | % | 64,707 | 451 | 2.77 | % | 93,721 | 958 | 4.06 | % | |||||||||||||
Federal funds sold and other earning assets | 289,896 | 4,032 | 5.52 | % | 229,487 | 3,045 | 5.26 | % | 322,970 | 3,098 | 3.81 | % | |||||||||||||
Total interest-earning assets | 4,380,604 | 57,588 | 5.22 | % | 4,397,926 | 55,370 | 4.99 | % | 4,268,971 | 47,475 | 4.41 | % | |||||||||||||
Noninterest-earning assets | 386,202 | 379,456 | 372,864 | ||||||||||||||||||||||
Total assets | $ | 4,766,806 | $ | 4,777,382 | $ | 4,641,835 | |||||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 974,637 | 5,631 | 2.29 | % | $ | 969,122 | 5,463 | 2.24 | % | $ | 924,320 | 3,141 | 1.35 | % | ||||||||||
Money market and savings deposits | 1,764,826 | 14,556 | 3.27 | % | 1,753,671 | 13,744 | 3.11 | % | 1,587,688 | 4,855 | 1.21 | % | |||||||||||||
Time deposits | 556,996 | 4,739 | 3.38 | % | 551,191 | 4,226 | 3.04 | % | 459,996 | 848 | 0.73 | % | |||||||||||||
Total interest-bearing deposits | 3,296,459 | 24,926 | 3.00 | % | 3,273,984 | 23,433 | 2.84 | % | 2,972,004 | 8,844 | 1.18 | % | |||||||||||||
Borrowings | 13,420 | 162 | 4.79 | % | 16,228 | 210 | 5.13 | % | 18,309 | 232 | 5.03 | % | |||||||||||||
Subordinated debt | 42,087 | 890 | 8.39 | % | 42,065 | 626 | 5.90 | % | 42,002 | 626 | 5.91 | % | |||||||||||||
Total interest-bearing liabilities | 3,351,966 | 25,978 | 3.07 | % | 3,332,277 | 24,269 | 2.89 | % | 3,032,315 | 9,702 | 1.27 | % | |||||||||||||
Noninterest-bearing deposits | 915,259 | 951,179 | 1,146,374 | ||||||||||||||||||||||
Other liabilities | 50,055 | 48,494 | 43,109 | ||||||||||||||||||||||
Total liabilities | 4,317,280 | 4,331,950 | 4,221,798 | ||||||||||||||||||||||
Shareholders' equity | 449,526 | 445,432 | 420,037 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,766,806 | $ | 4,777,382 | $ | 4,641,835 | |||||||||||||||||||
Net interest income, taxable equivalent | $ | 31,610 | $ | 31,101 | $ | 37,773 | |||||||||||||||||||
Interest rate spread | 2.14 | % | 2.11 | % | 3.14 | % | |||||||||||||||||||
Tax equivalent net interest margin | 2.86 | % | 2.81 | % | 3.51 | % | |||||||||||||||||||
Percentage of average interest-earning assets to average interest-bearing liabilities | 130.69 | % | 131.98 | % | 140.78 | % | |||||||||||||||||||
Percentage of average equity to average assets | 9.43 | % | 9.32 | % | 9.05 | % |
1 Includes average balance of
2 Yields computed on tax-exempt instruments on a tax equivalent basis include
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Year Ended | ||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||
Assets: | ||||||||||||||||||
Loans and leases, including fees1 | $ | 3,334,523 | $ | 186,479 | 5.59 | % | $ | 2,948,511 | $ | 136,381 | 4.63 | % | ||||||
Taxable securities | 713,637 | 16,665 | 2.34 | % | 688,428 | 11,799 | 1.71 | % | ||||||||||
Tax-exempt securities2 | 64,816 | 1,795 | 2.77 | % | 100,566 | 2,831 | 2.82 | % | ||||||||||
Federal funds sold and other earning assets | 272,864 | 13,481 | 4.94 | % | 577,593 | 8,488 | 1.47 | % | ||||||||||
Total interest-earning assets | 4,385,840 | 218,420 | 4.98 | % | 4,315,098 | 159,499 | 3.70 | % | ||||||||||
Noninterest-earning assets | 370,436 | 373,026 | ||||||||||||||||
Total assets | $ | 4,756,276 | $ | 4,688,124 | ||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $ | 959,639 | 20,214 | 2.11 | % | $ | 945,414 | 6,278 | 0.66 | % | ||||||||
Money market and savings deposits | 1,768,869 | 50,468 | 2.85 | % | 1,576,170 | 9,137 | 0.58 | % | ||||||||||
Time deposits | 520,799 | 13,578 | 2.61 | % | 513,416 | 2,813 | 0.55 | % | ||||||||||
Total interest-bearing deposits | 3,249,307 | 84,260 | 2.59 | % | 3,035,000 | 18,228 | 0.60 | % | ||||||||||
Borrowings | 17,824 | 936 | 5.25 | % | 32,986 | 602 | 1.83 | % | ||||||||||
Subordinated debt | 42,055 | 2,767 | 6.58 | % | 41,970 | 2,503 | 5.96 | % | ||||||||||
Total interest-bearing liabilities | 3,309,186 | 87,963 | 2.66 | % | 3,109,956 | 21,333 | 0.69 | % | ||||||||||
Noninterest-bearing deposits | 958,078 | 1,120,555 | ||||||||||||||||
Other liabilities | 46,052 | 34,361 | ||||||||||||||||
Total liabilities | 4,313,316 | 4,264,872 | ||||||||||||||||
Shareholders' equity | 442,960 | 423,252 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,756,276 | $ | 4,688,124 | ||||||||||||||
Net interest income, taxable equivalent | $ | 130,457 | $ | 138,166 | ||||||||||||||
Interest rate spread | 2.32 | % | 3.01 | % | ||||||||||||||
Tax equivalent net interest margin | 2.97 | % | 3.20 | % | ||||||||||||||
Percentage of average interest-earning assets to average interest-bearing liabilities | 132.54 | % | 138.75 | % | ||||||||||||||
Percentage of average equity to average assets | 9.31 | % | 9.03 | % |
1 Includes average balance of
2 Yields computed on tax-exempt instruments on a tax equivalent basis include
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
As of and for The Three Months Ended | |||||||||||||||||
Dec | Sep | Jun | Mar | Dec | |||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||
Composition of Loans and Leases: | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Owner occupied | $ | 798,416 | $ | 776,402 | $ | 769,978 | $ | 764,166 | $ | 765,041 | |||||||
Non-owner occupied | 940,789 | 890,774 | 871,779 | 871,368 | 862,720 | ||||||||||||
Commercial real estate, total | 1,739,205 | 1,667,176 | 1,641,757 | 1,635,534 | 1,627,761 | ||||||||||||
Commercial & industrial | 645,918 | 617,115 | 594,427 | 571,153 | 551,867 | ||||||||||||
Construction & land development | 327,185 | 373,068 | 394,742 | 386,253 | 402,501 | ||||||||||||
Consumer real estate | 649,867 | 638,518 | 624,828 | 606,343 | 587,977 | ||||||||||||
Leases | 68,752 | 68,538 | 66,401 | 67,701 | 67,427 | ||||||||||||
Consumer and other | 13,535 | 14,584 | 15,635 | 14,803 | 16,094 | ||||||||||||
Total loans and leases | $ | 3,444,462 | $ | 3,378,999 | $ | 3,337,790 | $ | 3,281,787 | $ | 3,253,627 | |||||||
Asset Quality and Additional Loan Data: | |||||||||||||||||
Nonperforming loans and leases | $ | 8,101 | $ | 4,163 | $ | 3,722 | $ | 3,247 | $ | 2,951 | |||||||
Other real estate owned | 517 | 1,370 | 1,708 | 1,708 | 1,436 | ||||||||||||
Other repossessed assets | 1,117 | 348 | 282 | 66 | 422 | ||||||||||||
Total nonperforming assets | $ | 9,735 | $ | 5,881 | $ | 5,712 | $ | 5,021 | $ | 4,809 | |||||||
Restructured loans and leases not included in nonperforming loans and leases | $ | 4,245 | $ | 2,376 | $ | 657 | $ | 97 | $ | 101 | |||||||
Net charge-offs to average loans and leases (annualized) | 0.04 | % | 0.04 | % | (0.01 | ) | % | 0.03 | % | 0.03 | % | ||||||
Allowance for credit losses to loans and leases | 1.02 | % | 1.00 | % | 0.98 | % | 0.98 | % | 0.72 | % | |||||||
Nonperforming loans and leases to total loans and leases, gross | 0.24 | % | 0.12 | % | 0.11 | % | 0.10 | % | 0.09 | % | |||||||
Nonperforming assets to total assets | 0.20 | % | 0.12 | % | 0.12 | % | 0.11 | % | 0.10 | % | |||||||
Acquired loan and lease fair value discount balance | $ | — | $ | — | $ | — | $ | — | $ | 13,128 | |||||||
Accretion income on acquired loans and leases | — | — | — | — | 1,396 | ||||||||||||
PPP net fees deferred balance | 84 | 94 | 104 | 114 | 122 | ||||||||||||
PPP net fees recognized | 10 | 10 | 10 | 8 | 17 | ||||||||||||
Capital Ratios: | |||||||||||||||||
Equity to Assets | 9.52 | % | 9.31 | % | 9.37 | % | 9.30 | % | 9.33 | % | |||||||
Tangible common equity to tangible assets (Non-GAAP)1 | 7.47 | % | 7.23 | % | 7.25 | % | 7.17 | % | 7.13 | % | |||||||
Tier 1 leverage | 8.27 | % | 8.13 | % | 8.24 | % | 7.91 | % | 7.95 | % | |||||||
Common equity Tier 1 | 10.21 | % | 10.07 | % | 10.12 | % | 9.95 | % | 9.65 | % | |||||||
Tier 1 capital | 10.21 | % | 10.07 | % | 10.12 | % | 9.95 | % | 9.65 | % | |||||||
Total capital | 11.86 | % | 11.90 | % | 11.94 | % | 11.77 | % | 11.40 | % | |||||||
Estimated3 | |||||||||||||||||
Tier 1 leverage | 9.18 | % | 9.00 | % | 9.18 | % | 8.87 | % | 8.90 | % | |||||||
Common equity Tier 1 | 11.29 | % | 11.15 | % | 11.27 | % | 11.15 | % | 10.82 | % | |||||||
Tier 1 capital | 11.29 | % | 11.15 | % | 11.27 | % | 11.15 | % | 10.82 | % | |||||||
Total capital | 12.04 | % | 11.87 | % | 11.97 | % | 11.85 | % | 11.44 | % |
1Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.
2All periods presented are estimated.
3 Current period capital ratios are estimated as of the date of this earnings release.
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands except share and per share data)
As of and for The | As of and for The | |||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
Dec | Sep | Jun | Mar | Dec | Dec | Dec | ||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Selected Performance Ratios (Annualized): | ||||||||||||||||||||||
Return on average assets | 0.52 | % | 0.17 | % | 0.75 | % | 0.97 | % | 1.11 | % | 0.60 | % | 0.92 | % | ||||||||
Return on average shareholders' equity | 5.46 | % | 1.84 | % | 7.98 | % | 10.79 | % | 12.28 | % | 6.45 | % | 10.16 | % | ||||||||
Return on average tangible common equity¹ | 7.18 | % | 2.43 | % | 10.57 | % | 14.45 | % | 16.65 | % | 8.55 | % | 13.60 | % | ||||||||
Noninterest income / average assets | 0.63 | % | 0.06 | % | 0.61 | % | 0.59 | % | 0.61 | % | 0.47 | % | 0.59 | % | ||||||||
Noninterest expense / average assets | 2.47 | % | 2.37 | % | 2.34 | % | 2.33 | % | 2.34 | % | 2.38 | % | 2.27 | % | ||||||||
Efficiency ratio | 75.95 | % | 89.96 | % | 70.82 | % | 64.16 | % | 61.28 | % | 74.24 | % | 64.33 | % | ||||||||
Operating Selected Performance Ratios (Annualized): | ||||||||||||||||||||||
Operating return on average assets1 | 0.57 | % | 0.60 | % | 0.75 | % | 0.97 | % | 1.10 | % | 0.72 | % | 0.92 | % | ||||||||
Operating PPNR return on average assets1 | 0.86 | % | 0.84 | % | 0.96 | % | 1.30 | % | 1.46 | % | 0.99 | % | 1.27 | % | ||||||||
Operating return on average shareholders' equity1 | 6.07 | % | 6.41 | % | 7.98 | % | 10.79 | % | 12.15 | % | 7.77 | % | 10.24 | % | ||||||||
Operating return on average tangible common equity1 | 7.98 | % | 8.46 | % | 10.57 | % | 14.45 | % | 16.47 | % | 10.29 | % | 13.69 | % | ||||||||
Operating efficiency ratio1 | 73.41 | % | 73.60 | % | 70.64 | % | 64.02 | % | 61.36 | % | 70.26 | % | 63.79 | % | ||||||||
Operating noninterest income / average assets1 | 0.63 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.60 | % | 0.61 | % | 0.59 | % | ||||||||
Operating noninterest expense / average assets1 | 2.39 | % | 2.36 | % | 2.34 | % | 2.33 | % | 2.35 | % | 2.36 | % | 2.26 | % | ||||||||
Selected Interest Rates and Yields: | ||||||||||||||||||||||
Yield on loans and leases, excluding loan fees | 5.61 | % | 5.52 | % | 5.39 | % | 5.20 | % | 4.99 | % | 5.43 | % | 4.41 | % | ||||||||
Yield on loans and leases | 5.68 | % | 5.61 | % | 5.51 | % | 5.57 | % | 5.05 | % | 5.59 | % | 4.63 | % | ||||||||
Yield on earning assets, FTE | 5.22 | % | 4.99 | % | 4.82 | % | 4.88 | % | 4.41 | % | 4.98 | % | 3.70 | % | ||||||||
Cost of interest-bearing deposits | 3.00 | % | 2.84 | % | 2.46 | % | 2.05 | % | 1.18 | % | 2.59 | % | 0.60 | % | ||||||||
Cost of total deposits | 2.35 | % | 2.20 | % | 1.89 | % | 1.56 | % | 0.85 | % | 2.00 | % | 0.44 | % | ||||||||
Cost of interest-bearing liabilities | 3.07 | % | 2.89 | % | 2.53 | % | 2.12 | % | 1.27 | % | 2.66 | % | 0.69 | % | ||||||||
Net interest margin, FTE | 2.86 | % | 2.81 | % | 2.93 | % | 3.31 | % | 3.51 | % | 2.97 | % | 3.20 | % | ||||||||
Per Common Share: | ||||||||||||||||||||||
Net income, basic | $ | 0.37 | $ | 0.12 | $ | 0.53 | $ | 0.69 | $ | 0.78 | $ | 1.70 | $ | 2.57 | ||||||||
Net income, diluted | 0.37 | 0.12 | 0.52 | 0.68 | 0.77 | 1.69 | 2.55 | |||||||||||||||
Operating earnings, basic¹ | 0.41 | 0.43 | 0.53 | 0.69 | 0.77 | 2.05 | 2.59 | |||||||||||||||
Operating earnings, diluted¹ | 0.41 | 0.43 | 0.52 | 0.68 | 0.76 | 2.03 | 2.57 | |||||||||||||||
Book value | 27.07 | 26.28 | 26.16 | 26.08 | 25.59 | 27.07 | 25.59 | |||||||||||||||
Tangible book value¹ | 20.76 | 19.94 | 19.78 | 19.66 | 19.09 | 20.76 | 19.09 | |||||||||||||||
Common shares outstanding | 16,988,879 | 16,994,543 | 17,004,092 | 17,004,092 | 16,900,805 | 16,988,879 | 16,900,805 |
¹Non-GAAP measure. See reconciliation of Non-GAAP measures.
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
NON-GAAP RECONCILIATIONS
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||
Dec | Sep | Jun | Mar | Dec | Dec | Dec | ||||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Operating Earnings: | ||||||||||||||||||||||||||||||
Net income (GAAP) | $ | 6,190 | $ | 2,067 | $ | 8,836 | $ | 11,500 | $ | 13,004 | $ | 28,593 | $ | 43,022 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||
Securities (gains) losses, net | — | 6,801 | — | — | (144 | ) | 6,801 | (144 | ) | |||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||||
Donation of a former branch location | 250 | — | — | — | — | 250 | — | |||||||||||||||||||||||
Accruals for pending litigation | 675 | — | — | — | — | 675 | — | |||||||||||||||||||||||
Merger related and restructuring expenses | — | 110 | — | — | (45 | ) | 110 | 562 | ||||||||||||||||||||||
Income taxes: | ||||||||||||||||||||||||||||||
Income tax effect of adjustments | (239 | ) | (1,785 | ) | — | — | 49 | (2,024 | ) | (108 | ) | |||||||||||||||||||
Operating earnings (Non-GAAP) | $ | 6,876 | $ | 7,193 | $ | 8,836 | $ | 11,500 | $ | 12,864 | $ | 34,405 | $ | 43,332 | ||||||||||||||||
Operating earnings per common share (Non-GAAP): | ||||||||||||||||||||||||||||||
Basic | $ | 0.41 | $ | 0.43 | $ | 0.53 | $ | 0.69 | $ | 0.77 | $ | 2.05 | $ | 2.59 | ||||||||||||||||
Diluted | 0.41 | 0.43 | 0.52 | 0.68 | 0.76 | 2.03 | 2.57 | |||||||||||||||||||||||
Operating Noninterest Income: | ||||||||||||||||||||||||||||||
Noninterest income (GAAP) | $ | 7,579 | $ | 691 | $ | 7,130 | $ | 6,925 | $ | 7,125 | $ | 22,325 | $ | 27,715 | ||||||||||||||||
Securities (gains) losses, net | — | 6,801 | — | — | (144 | ) | 6,801 | (144 | ) | |||||||||||||||||||||
Operating noninterest income (Non-GAAP) | $ | 7,579 | $ | 7,492 | $ | 7,130 | $ | 6,925 | $ | 6,981 | $ | 29,126 | $ | 27,571 | ||||||||||||||||
Operating noninterest income (Non-GAAP)/average assets1 | 0.63 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.60 | % | 0.61 | % | 0.59 | % | ||||||||||||||||
Operating Noninterest Expense: | ||||||||||||||||||||||||||||||
Noninterest expense (GAAP) | $ | 29,695 | $ | 28,516 | $ | 27,410 | $ | 27,529 | $ | 27,416 | $ | 113,150 | $ | 106,290 | ||||||||||||||||
Donation of a former branch location | (250 | ) | — | — | — | — | (250 | ) | — | |||||||||||||||||||||
Accruals for pending litigation | (675 | ) | — | — | — | — | (675 | ) | — | |||||||||||||||||||||
Merger related and restructuring expenses | — | (110 | ) | — | — | 45 | (110 | ) | (562 | ) | ||||||||||||||||||||
Operating noninterest expense (Non-GAAP) | $ | 28,770 | $ | 28,406 | $ | 27,410 | $ | 27,529 | $ | 27,461 | $ | 112,115 | $ | 105,728 | ||||||||||||||||
Operating noninterest expense (Non-GAAP)/average assets2 | 2.39 | % | 2.36 | % | 2.34 | % | 2.33 | % | 2.35 | % | 2.36 | % | 2.26 | % | ||||||||||||||||
Operating Pre-provision Net revenue ("PPNR") Earnings: | ||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 31,517 | $ | 31,006 | $ | 31,575 | $ | 35,982 | $ | 37,612 | $ | 130,080 | $ | 137,501 | ||||||||||||||||
Operating noninterest income (Non-GAAP) | 7,579 | 7,492 | 7,130 | 6,925 | 6,981 | 29,126 | 27,571 | |||||||||||||||||||||||
Operating noninterest expense (Non-GAAP) | (28,770 | ) | (28,406 | ) | (27,410 | ) | (27,529 | ) | (27,461 | ) | (112,115 | ) | (105,728 | ) | ||||||||||||||||
Operating PPNR earnings (Non-GAAP) | $ | 10,326 | $ | 10,092 | $ | 11,295 | $ | 15,378 | $ | 17,132 | $ | 47,091 | $ | 59,344 | ||||||||||||||||
Non-GAAP Return Ratios: | ||||||||||||||||||||||||||||||
Operating return on average assets (Non-GAAP)3 | 0.57 | % | 0.60 | % | 0.75 | % | 0.97 | % | 1.10 | % | 0.72 | % | 0.92 | % | ||||||||||||||||
Operating PPNR return on average assets (Non-GAAP)4 | 0.86 | % | 0.84 | % | 0.96 | % | 1.30 | % | 1.46 | % | 0.99 | % | 1.27 | % | ||||||||||||||||
Return on average tangible common equity (Non-GAAP)5 | 7.18 | % | 2.43 | % | 10.57 | % | 14.45 | % | 16.65 | % | 8.55 | % | 13.60 | % | ||||||||||||||||
Operating return on average shareholders' equity (Non-GAAP)6 | 6.07 | % | 6.41 | % | 7.98 | % | 10.79 | % | 12.15 | % | 7.77 | % | 10.24 | % | ||||||||||||||||
Operating return on average tangible common equity (Non-GAAP)7 | 7.98 | % | 8.46 | % | 10.57 | % | 14.45 | % | 16.47 | % | 10.29 | % | 13.69 | % | ||||||||||||||||
Operating Efficiency Ratio: | ||||||||||||||||||||||||||||||
Efficiency ratio (GAAP) | 75.95 | % | 89.96 | % | 70.82 | % | 64.16 | % | 61.28 | % | 74.24 | % | 64.33 | % | ||||||||||||||||
Adjustment for taxable equivalent yields | (0.18 | ) | % | (0.27 | ) | % | (0.18 | ) | % | (0.14 | ) | % | (0.22 | ) | % | (0.18 | ) | % | (0.26 | ) | % | |||||||||
Adjustment for securities gains (losses) | — | % | (15.89 | ) | % | — | % | — | % | 0.20 | % | (3.17 | ) | % | 0.06 | % | ||||||||||||||
Adjustment for donation of a former branch location | (0.64 | ) | % | — | % | — | % | — | % | — | % | (0.16 | ) | % | — | % | ||||||||||||||
Adjustment for accruals for pending litigation | (1.72 | ) | % | — | % | — | % | — | % | — | % | (0.44 | ) | % | — | % | ||||||||||||||
Adjustment for merger related income and costs | — | % | (0.20 | ) | % | — | % | — | % | 0.10 | % | (0.03 | ) | % | (0.34 | ) | % | |||||||||||||
Operating efficiency ratio (Non-GAAP) | 73.41 | % | 73.60 | % | 70.64 | % | 64.02 | % | 61.36 | % | 70.26 | % | 63.79 | % |
1Operating noninterest income (Non-GAAP) is annualized and divided by average assets.
2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.
3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.
4Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets.
5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).
6Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.
7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
NON-GAAP RECONCILIATIONS
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
Dec | Sep | Jun | Mar | Dec | Dec | Dec | |||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Tangible Common Equity: | |||||||||||||||||||||||||||||
Shareholders' equity (GAAP) | $ | 459,886 | $ | 446,652 | $ | 444,847 | $ | 443,399 | $ | 432,452 | $ | 459,886 | $ | 432,452 | |||||||||||||||
Less goodwill and other intangible assets | 107,148 | 107,792 | 108,439 | 109,114 | 109,772 | 107,148 | 109,772 | ||||||||||||||||||||||
Tangible common equity (Non-GAAP) | $ | 352,738 | $ | 338,860 | $ | 336,408 | $ | 334,285 | $ | 322,680 | $ | 352,738 | $ | 322,680 | |||||||||||||||
Average Tangible Common Equity: | |||||||||||||||||||||||||||||
Average shareholders' equity (GAAP) | $ | 449,526 | $ | 445,432 | $ | 444,283 | $ | 432,382 | $ | 420,037 | $ | 442,960 | $ | 423,252 | |||||||||||||||
Less average goodwill and other intangible assets | 107,551 | 108,194 | 108,851 | 109,537 | 110,206 | 108,527 | 106,834 | ||||||||||||||||||||||
Average tangible common equity (Non-GAAP) | $ | 341,975 | $ | 337,238 | $ | 335,432 | $ | 322,845 | $ | 309,831 | $ | 334,433 | $ | 316,418 | |||||||||||||||
Tangible Book Value per Common Share: | |||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 27.07 | $ | 26.28 | $ | 26.16 | $ | 26.08 | $ | 25.59 | $ | 27.07 | $ | 25.59 | |||||||||||||||
Adjustment due to goodwill and other intangible assets | (6.31 | ) | (6.34 | ) | (6.38 | ) | (6.42 | ) | (6.50 | ) | (6.31 | ) | (6.50 | ) | |||||||||||||||
Tangible book value per common share (Non-GAAP)1 | $ | 20.76 | $ | 19.94 | $ | 19.78 | $ | 19.66 | $ | 19.09 | $ | 20.76 | $ | 19.09 | |||||||||||||||
Tangible Common Equity to Tangible Assets: | |||||||||||||||||||||||||||||
Total Assets (GAAP) | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | $ | 4,769,805 | $ | 4,637,498 | $ | 4,829,387 | $ | 4,637,498 | |||||||||||||||
Less goodwill and other intangibles | 107,148 | 107,792 | 108,439 | 109,114 | 109,772 | 107,148 | 109,772 | ||||||||||||||||||||||
Tangible Assets (Non-GAAP) | $ | 4,722,239 | $ | 4,689,379 | $ | 4,637,361 | $ | 4,660,691 | $ | 4,527,726 | $ | 4,722,239 | $ | 4,527,726 | |||||||||||||||
Tangible common equity to tangible assets (Non-GAAP) | 7.47 | % | 7.23 | % | 7.25 | % | 7.17 | % | 7.13 | % | 7.47 | % | 7.13 | % |
1Tangible book value per share (Non-GAAP) is computed by dividing total stockholder's equity, less goodwill and other intangible assets, by common shares outstanding.
Source:
2024 GlobeNewswire, Inc., source