The
First Quarter 2024 Highlights
- Net loss was
$338 thousand for the first quarter 2024, compared to net income of$20.2 million in the prior quarter, with PPNR of$38.3 million for the first quarter 2024, compared to$38.8 million for the prior quarter. - The ACL as a percentage of total loans was 1.25% at quarter-end; up from 1.08% at the prior quarter-end. Performing office coverage2 was 3.67% at quarter-end; as compared to 1.91% at the prior quarter-end.
- The net interest margin ("NIM") remained steady at 2.43% for the first quarter 2024, compared to 2.45% for the prior quarter.
- The Company declared a quarterly dividend of
$0.45 per share. - At quarter-end, the common equity ratio, tangible common equity ratio, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.85%, 10.03%, and 13.80%, respectively.
- Loans at quarter-end were
$8.0 billion , up$14.0 million , or 0.2%, from the prior quarter-end. - Deposits at quarter-end were
$8.5 billion , down$306.6 million , or 3.5%, from the prior quarter-end. The decrease was primarily attributable to anticipated seasonality in deposits from tax payments. Deposits have increased over$1.0 billion as compared toMarch 31, 2023 . - Total estimated insured deposits at quarter-end were
$6.2 billion , or 72.4% of deposits. Total on-balance sheet liquidity and available capacity was$2.9 billion at quarter-end.
Income Statement
- Net interest income was
$74.7 million for the first quarter 2024, compared to$73.0 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and yields on the loan portfolio. - Provision for credit losses was
$35.2 million for the first quarter 2024, compared to$14.5 million for the prior quarter. The increase in the provision was primarily driven by an updated valuation for a CRE office property collateralizing a lending relationship that was partially charged off in the first quarter 2024 due to an updated appraisal. In addition, there was an increase in the provision primarily attributable to the increase in the office ACL coverage ratio. - Noninterest income was
$3.6 million for the first quarter 2024, compared to$2.9 million for the prior quarter. The primary driver for the increase was market value adjustments on our derivative book. - Noninterest expense was
$40.0 million for the first quarter 2024, compared to$37.1 million for the prior quarter. The increase over the comparative quarters was primarily due to increased salaries and employee benefits expenses in connection with first quarter seasonality and related payroll tax increases in the first quarter 2024, along with higherFederal Deposit Insurance Corporation ("FDIC") fees.
Loans and Funding
- Total loans were
$8.0 billion atMarch 31, 2024 , up 0.2% from the prior quarter-end. The increase in total loans was driven by increased fundings of ongoing construction projects for commercial and residential properties, partially offset by a reduction in CRE loans from quarter-end to the prior quarter-end.
AtMarch 31, 2024 , income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 11.2% of the total loan portfolio at principal, down from 11.9% at the prior quarter-end.
- Total deposits were
$8.5 billion atMarch 31, 2024 , down 3.5% from the prior quarter-end. The decrease was primarily attributable to seasonality in deposits from tax payments. - Borrowings were
$1.7 billion atMarch 31, 2024 , up 21.9% from the prior quarter-end due primarily to net fundings on the Company's secured borrowing lines.
Asset Quality
- Allowance for credit losses was 1.25% of total loans at
March 31, 2024 , compared to 1.08% at the prior quarter-end. Performing office coverage was 3.67% at quarter-end; as compared to 1.91% at the prior quarter-end.
Net charge-offs were$21.4 million for the quarter.
- Nonperforming assets were
$92.3 million atMarch 31, 2024 .- NPAs as a percentage of assets were 0.79% at
March 31, 2024 , compared to 0.57% at the prior quarter-end. AtMarch 31, 2024 , other real estate owned consisted of four properties with an aggregate carrying value of$773 thousand . - Loans 30-89 days past due were
$31.1 million atMarch 31, 2024 , up from$13.6 million at the prior quarter-end attributed to two relationships; one has since been brought current and the other as posing a limited risk of loss.
- NPAs as a percentage of assets were 0.79% at
Capital
- Total shareholders' equity was
$1.3 billion atMarch 31, 2024 , down 1.2% from the prior quarter-end. The decrease in shareholders' equity of$14.9 million was primarily from reduced valuations of available-for-sale securities and a decline in retained earnings. - Book value per share was
$41.72 , down$0.86 from the prior quarter-end. - Tangible book value per share1 was
$38.26 , down$0.82 from the prior quarter-end.
Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended
About
Conference call:
The listen-only webcast can be accessed at:
- https://edge.media-server.com/mmc/p/ubgqftw2/
- For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI92527acbd31b4c4fbe973b59797f475f
- A replay of the conference call will be available on the Company's website through
May 9, 2024 : https://www.eaglebankcorp.com/
Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "can," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," "could," "strive," "feel" and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market (including volatility in interest rates and interest rate policy; the current high inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended
Consolidated Statements of Operations (Unaudited) | |||||||||||
(Dollars in thousands, except per share data) | |||||||||||
Three Months Ended | |||||||||||
2024 | 2023 | 2023 | |||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 137,994 | $ | 135,964 | $ | 120,850 | |||||
Interest and dividends on investment securities | 12,680 | 13,142 | 13,545 | ||||||||
Interest on balances with other banks and short-term investments | 24,862 | 18,230 | 5,774 | ||||||||
Interest on federal funds sold | 66 | 85 | 78 | ||||||||
Total interest income | 175,602 | 167,421 | 140,247 | ||||||||
Interest Expense | |||||||||||
Interest on deposits | 79,383 | 78,239 | 48,954 | ||||||||
Interest on customer repurchase agreements | 315 | 272 | 302 | ||||||||
Interest on borrowings | 21,206 | 15,918 | 15,967 | ||||||||
Total interest expense | 100,904 | 94,429 | 65,223 | ||||||||
Net Interest Income | 74,698 | 72,992 | 75,024 | ||||||||
Provision for Credit Losses | 35,175 | 14,490 | 6,164 | ||||||||
Provision for (Reversal of) Credit Losses for Unfunded Commitments | 456 | (594 | ) | 848 | |||||||
Net Interest Income After Provision For (Reversal of) Credit Losses | 39,067 | 59,096 | 68,012 | ||||||||
Noninterest Income | |||||||||||
Service charges on deposits | 1,699 | 1,688 | 1,510 | ||||||||
Gain on sale of loans | — | 23 | 305 | ||||||||
Net gain (loss) on sale of investment securities | 4 | 3 | (21 | ) | |||||||
Increase in cash surrender value of bank-owned life insurance | 703 | 687 | 655 | ||||||||
Other income | 1,183 | 493 | 1,251 | ||||||||
Total noninterest income | 3,589 | 2,894 | 3,700 | ||||||||
Noninterest Expense | |||||||||||
Salaries and employee benefits | 21,726 | 18,416 | 24,174 | ||||||||
Premises and equipment expenses | 3,059 | 2,967 | 3,317 | ||||||||
Marketing and advertising | 859 | 1,071 | 636 | ||||||||
Data processing | 3,293 | 3,436 | 3,099 | ||||||||
Legal, accounting and professional fees | 2,507 | 2,722 | 3,254 | ||||||||
6,412 | 4,444 | 1,486 | |||||||||
Other expenses | 2,141 | 4,042 | 4,618 | ||||||||
Total noninterest expense | 39,997 | 37,098 | 40,584 | ||||||||
Income Before Income Tax Expense | 2,659 | 24,892 | 31,128 | ||||||||
Income Tax Expense | 2,997 | 4,667 | 6,894 | ||||||||
Net (Loss) Income | $ | (338 | ) | $ | 20,225 | $ | 24,234 | ||||
(Loss) Earnings Per Common Share | |||||||||||
Basic | $ | (0.01 | ) | $ | 0.68 | $ | 0.78 | ||||
Diluted | $ | (0.01 | ) | $ | 0.67 | $ | 0.78 | ||||
Consolidated Balance Sheets (Unaudited) | |||||||||||
(Dollars in thousands, except per share data) | |||||||||||
2024 | 2023 | 2023 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 10,076 | $ | 9,047 | $ | 9,940 | |||||
Federal funds sold | 11,343 | 3,740 | 3,746 | ||||||||
Interest-bearing deposits with banks and other short-term investments | 696,453 | 709,897 | 159,078 | ||||||||
Investment securities available-for-sale at fair value (amortized cost of | 1,445,034 | 1,506,388 | 1,582,185 | ||||||||
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of | 1,000,732 | 1,015,737 | 1,075,303 | ||||||||
54,678 | 25,748 | 79,134 | |||||||||
Loans held for sale | — | — | 6,488 | ||||||||
Loans | 7,982,702 | 7,968,695 | 7,737,676 | ||||||||
Less: allowance for credit losses | (99,684 | ) | (85,940 | ) | (78,377 | ) | |||||
Loans, net | 7,883,018 | 7,882,755 | 7,659,299 | ||||||||
Premises and equipment, net | 9,504 | 10,189 | 12,929 | ||||||||
Operating lease right-of-use assets | 17,679 | 19,129 | 23,060 | ||||||||
Deferred income taxes | 87,813 | 86,620 | 89,117 | ||||||||
Bank-owned life insurance | 113,624 | 112,921 | 111,217 | ||||||||
104,611 | 104,925 | 104,226 | |||||||||
Other real estate owned | 773 | 1,108 | 1,962 | ||||||||
Other assets | 177,310 | 176,334 | 171,183 | ||||||||
Total Assets | $ | 11,612,648 | $ | 11,664,538 | $ | 11,088,867 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | 1,835,524 | $ | 2,279,081 | $ | 2,247,706 | |||||
Interest-bearing transaction | 1,207,566 | 997,448 | 907,637 | ||||||||
Savings and money market | 3,235,391 | 3,314,043 | 2,970,093 | ||||||||
Time deposits | 2,222,958 | 2,217,467 | 1,337,805 | ||||||||
Total deposits | 8,501,439 | 8,808,039 | 7,463,241 | ||||||||
Customer repurchase agreements | 37,059 | 30,587 | 37,854 | ||||||||
Borrowings | 1,669,948 | 1,369,918 | 2,183,626 | ||||||||
Operating lease liabilities | 21,611 | 23,238 | 27,634 | ||||||||
Reserve for unfunded commitments | 6,045 | 5,590 | 6,704 | ||||||||
Other liabilities | 117,133 | 152,883 | 127,850 | ||||||||
Total Liabilities | 10,353,235 | 10,390,255 | 9,846,909 | ||||||||
Shareholders' Equity | |||||||||||
Common stock, par value | 297 | 296 | 308 | ||||||||
Additional paid-in capital | 377,334 | 374,888 | 397,012 | ||||||||
Retained earnings | 1,047,550 | 1,061,456 | 1,025,552 | ||||||||
Accumulated other comprehensive loss | (165,768 | ) | (162,357 | ) | (180,914 | ) | |||||
Total Shareholders' Equity | 1,259,413 | 1,274,283 | 1,241,958 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 11,612,648 | $ | 11,664,538 | $ | 11,088,867 | |||||
Loan Mix and Asset Quality (Dollars in thousands) | ||||||||||||||
2024 | 2023 | 2023 | ||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||
Loan Balances - Period End: | ||||||||||||||
Commercial | $ | 1,408,767 | 18 | % | $ | 1,473,766 | 18 | % | $ | 1,482,983 | 19 | % | ||
PPP loans | 467 | — | % | 528 | — | % | 709 | — | % | |||||
Income producing - commercial real estate | 4,040,655 | 50 | % | 4,094,614 | 51 | % | 3,970,903 | 51 | % | |||||
Owner occupied - commercial real estate | 1,185,582 | 15 | % | 1,172,239 | 15 | % | 1,095,699 | 14 | % | |||||
Real estate mortgage - residential | 72,087 | 1 | % | 73,396 | 1 | % | 73,677 | 1 | % | |||||
Construction - commercial and residential | 1,082,556 | 13 | % | 969,766 | 12 | % | 948,877 | 13 | % | |||||
Construction - C&I (owner occupied) | 138,379 | 2 | % | 132,021 | 2 | % | 109,013 | 1 | % | |||||
Home equity | 53,251 | 1 | % | 51,964 | 1 | % | 53,829 | 1 | % | |||||
Other consumer | 958 | — | % | 401 | — | % | 1,986 | — | % | |||||
Total loans | $ | 7,982,702 | 100 | % | $ | 7,968,695 | 100 | % | $ | 7,737,676 | 100 | % | ||
Three Months Ended or As Of | ||||||||
2024 | 2023 | 2023 | ||||||
Asset Quality: | ||||||||
Net charge-offs | $ | 21,430 | $ | 11,936 | $ | 975 | ||
Nonperforming loans | $ | 91,491 | $ | 65,524 | $ | 6,757 | ||
Other real estate owned | $ | 773 | $ | 1,108 | $ | 1,962 | ||
Nonperforming assets | $ | 92,264 | $ | 66,632 | $ | 8,719 | ||
Special mention | $ | 265,348 | $ | 207,059 | $ | 76,032 | ||
Substandard | $ | 361,776 | $ | 335,815 | $ | 87,950 | ||
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Interest earning assets: | |||||||||||||||||||
Interest-bearing deposits with other banks and other short-term investments | $ | 1,841,771 | $ | 24,862 | 5.43 | % | $ | 1,340,972 | $ | 18,230 | 5.39 | % | |||||||
Loans (1) (2) | 7,988,941 | 137,994 | 6.95 | % | 7,963,074 | 135,964 | 6.77 | % | |||||||||||
Investment securities available-for-sale (2) | 1,516,503 | 7,247 | 1.92 | % | 1,498,132 | 7,611 | 2.02 | % | |||||||||||
Investment securities held-to-maturity (2) | 1,011,231 | 5,433 | 2.16 | % | 1,027,230 | 5,531 | 2.14 | % | |||||||||||
Federal funds sold | 7,051 | 66 | 3.76 | % | 8,314 | 85 | 4.06 | % | |||||||||||
Total interest earning assets | 12,365,497 | $ | 175,602 | 5.71 | % | 11,837,722 | $ | 167,421 | 5.61 | % | |||||||||
Total noninterest earning assets | 508,987 | 530,364 | |||||||||||||||||
Less: allowance for credit losses | (90,014 | ) | (84,783 | ) | |||||||||||||||
Total noninterest earning assets | 418,973 | 445,581 | |||||||||||||||||
TOTAL ASSETS | $ | 12,784,470 | $ | 12,283,303 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction | $ | 1,833,493 | $ | 16,830 | 3.69 | % | $ | 1,843,617 | $ | 16,607 | 3.57 | % | |||||||
Savings and money market | 3,423,388 | 35,930 | 4.22 | % | 3,297,581 | 35,384 | 4.26 | % | |||||||||||
Time deposits | 2,187,320 | 26,623 | 4.90 | % | 2,164,038 | 26,248 | 4.81 | % | |||||||||||
Total interest bearing deposits | 7,444,201 | 79,383 | 4.29 | % | 7,305,236 | 78,239 | 4.25 | % | |||||||||||
Customer repurchase agreements | 36,084 | 315 | 3.51 | % | 31,290 | 272 | 3.45 | % | |||||||||||
Borrowings | 1,796,863 | 21,206 | 4.75 | % | 1,370,627 | 15,918 | 4.61 | % | |||||||||||
Total interest bearing liabilities | 9,277,148 | $ | 100,904 | 4.37 | % | 8,707,153 | $ | 94,429 | 4.30 | % | |||||||||
Noninterest bearing liabilities: | |||||||||||||||||||
Noninterest bearing demand | 2,057,460 | 2,166,133 | |||||||||||||||||
Other liabilities | 160,206 | 171,254 | |||||||||||||||||
Total noninterest bearing liabilities | 2,217,666 | 2,337,387 | |||||||||||||||||
Shareholders' equity | 1,289,656 | 1,238,763 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,784,470 | $ | 12,283,303 | |||||||||||||||
Net interest income | $ | 74,698 | $ | 72,992 | |||||||||||||||
Net interest spread | 1.34 | % | 1.31 | % | |||||||||||||||
Net interest margin | 2.43 | % | 2.45 | % | |||||||||||||||
Cost of funds | 3.58 | % | 3.45 | % |
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
Consolidated Average Balances, Interest Yields And Rates vs. | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2024 | 2023 | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
ASSETS | |||||||||||||||||||
Interest earning assets: | |||||||||||||||||||
Interest bearing deposits with other banks and other short-term investments | $ | 1,841,771 | $ | 24,862 | 5.43 | % | $ | 526,506 | $ | 5,774 | 4.45 | % | |||||||
Loans held for sale (1) | — | — | — | % | 4,093 | 60 | 5.95 | % | |||||||||||
Loans (1) (2) | 7,988,941 | 137,994 | 6.95 | % | 7,712,023 | 120,790 | 6.35 | % | |||||||||||
Investment securities available-for-sale (2) | 1,516,503 | 7,247 | 1.92 | % | 1,660,258 | 7,811 | 1.91 | % | |||||||||||
Investment securities held-to-maturity (2) | 1,011,231 | 5,433 | 2.16 | % | 1,087,047 | 5,734 | 2.14 | % | |||||||||||
Federal funds sold | 7,051 | 66 | 3.76 | % | 14,890 | 78 | 2.12 | % | |||||||||||
Total interest earning assets | 12,365,497 | $ | 175,602 | 5.71 | % | 11,004,817 | $ | 140,247 | 5.17 | % | |||||||||
Total noninterest earning assets | 508,987 | 495,889 | |||||||||||||||||
Less: allowance for credit losses | (90,014 | ) | (74,650 | ) | |||||||||||||||
Total noninterest earning assets | 418,973 | 421,239 | |||||||||||||||||
TOTAL ASSETS | $ | 12,784,470 | $ | 11,426,056 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest bearing transaction | $ | 1,833,493 | $ | 16,830 | 3.69 | % | $ | 1,065,421 | $ | 6,107 | 2.32 | % | |||||||
Savings and money market | 3,423,388 | 35,930 | 4.22 | % | 3,326,807 | 33,274 | 4.06 | % | |||||||||||
Time deposits | 2,187,320 | 26,623 | 4.90 | % | 1,078,227 | 9,573 | 3.60 | % | |||||||||||
Total interest bearing deposits | 7,444,201 | 79,383 | 4.29 | % | 5,470,455 | 48,954 | 3.63 | % | |||||||||||
Customer repurchase agreements | 36,084 | 315 | 3.51 | % | 38,257 | 302 | 3.20 | % | |||||||||||
Borrowings | 1,796,863 | 21,206 | 4.75 | % | 1,321,206 | 15,967 | 4.90 | % | |||||||||||
Total interest bearing liabilities | 9,277,148 | $ | 100,904 | 4.37 | % | 6,829,918 | $ | 65,223 | 3.87 | % | |||||||||
Noninterest bearing liabilities: | |||||||||||||||||||
Noninterest bearing demand | 2,057,460 | 3,263,670 | |||||||||||||||||
Other liabilities | 160,206 | 91,490 | |||||||||||||||||
Total noninterest bearing liabilities | 2,217,666 | 3,355,160 | |||||||||||||||||
Shareholders' equity | 1,289,656 | 1,240,978 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,784,470 | $ | 11,426,056 | |||||||||||||||
Net interest income | $ | 74,698 | $ | 75,024 | |||||||||||||||
Net interest spread | 1.34 | % | 1.30 | % | |||||||||||||||
Net interest margin | 2.43 | % | 2.77 | % | |||||||||||||||
Cost of funds(3) | 3.58 | % | 2.62 | % |
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
(3) Beginning in the second quarter of 2023, the Company revised its cost of funds methodology to use a daily average calculation where interest expense on interest bearing liabilities is divided by average interest bearing liabilities and average noninterest bearing deposits. Previously, the Company calculated the cost of funds as the difference between yield on earning assets and net interest margin. Prior period has been conformed to the current presentation.
Statements of Operations and Highlights Quarterly Trends (Unaudited) | |||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||
Income Statements: | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||||||||||
Total interest income | $ | 175,602 | $ | 167,421 | $ | 161,149 | $ | 156,510 | $ | 140,247 | $ | 129,130 | $ | 111,527 | $ | 95,635 | |||||||||||||||
Total interest expense | 100,904 | 94,429 | 90,430 | 84,699 | 65,223 | 43,530 | 27,630 | 12,717 | |||||||||||||||||||||||
Net interest income | 74,698 | 72,992 | 70,719 | 71,811 | 75,024 | 85,600 | 83,897 | 82,918 | |||||||||||||||||||||||
Provision for (reversal of) credit losses | 35,175 | 14,490 | 5,644 | 5,238 | 6,164 | (464 | ) | 3,022 | 495 | ||||||||||||||||||||||
Provision for (reversal of) credit losses for unfunded commitments | 456 | (594 | ) | (839 | ) | 318 | 848 | 161 | 774 | 553 | |||||||||||||||||||||
Net interest income after provision for (reversal of) credit losses | 39,067 | 59,096 | 65,914 | 66,255 | 68,012 | 85,903 | 80,101 | 81,870 | |||||||||||||||||||||||
Noninterest income before investment gain (loss) | 3,585 | 2,891 | 6,342 | 8,593 | 3,721 | 5,326 | 5,304 | 5,715 | |||||||||||||||||||||||
Net gain (loss) on sale of investment securities | 4 | 3 | 5 | 2 | (21 | ) | 3 | 4 | (151 | ) | |||||||||||||||||||||
Total noninterest income | 3,589 | 2,894 | 6,347 | 8,595 | 3,700 | 5,329 | 5,308 | 5,564 | |||||||||||||||||||||||
Salaries and employee benefits | 21,726 | 18,416 | 21,549 | 21,957 | 24,174 | 23,691 | 21,538 | 21,805 | |||||||||||||||||||||||
Premises and equipment expenses | 3,059 | 2,967 | 3,095 | 3,227 | 3,317 | 3,292 | 3,275 | 3,523 | |||||||||||||||||||||||
Marketing and advertising | 859 | 1,071 | 768 | 884 | 636 | 1,290 | 1,181 | 1,186 | |||||||||||||||||||||||
Other expenses | 14,353 | 14,644 | 12,221 | 11,910 | 12,457 | 10,645 | 10,212 | 32,448 | |||||||||||||||||||||||
Total noninterest expense | 39,997 | 37,098 | 37,633 | 37,978 | 40,584 | 38,918 | 36,206 | 58,962 | |||||||||||||||||||||||
Income before income tax expense | 2,659 | 24,892 | 34,628 | 36,872 | 31,128 | 52,314 | 49,203 | 28,472 | |||||||||||||||||||||||
Income tax expense | 2,997 | 4,667 | 7,245 | 8,180 | 6,894 | 10,121 | 11,906 | 12,776 | |||||||||||||||||||||||
Net (loss) income | $ | (338 | ) | $ | 20,225 | $ | 27,383 | $ | 28,692 | $ | 24,234 | $ | 42,193 | $ | 37,297 | $ | 15,696 | ||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||||
(Loss) earnings per weighted average common share, basic | $ | (0.01 | ) | $ | 0.68 | $ | 0.91 | $ | 0.94 | $ | 0.78 | $ | 1.32 | $ | 1.16 | $ | 0.49 | ||||||||||||||
(Loss) earnings per weighted average common share, diluted | $ | (0.01 | ) | $ | 0.67 | $ | 0.91 | $ | 0.94 | $ | 0.78 | $ | 1.32 | $ | 1.16 | $ | 0.49 | ||||||||||||||
Weighted average common shares outstanding, basic | 30,068,173 | 29,925,557 | 29,910,218 | 30,454,766 | 31,109,267 | 31,819,631 | 32,084,464 | 32,080,657 | |||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 30,068,173 | 29,966,962 | 29,944,692 | 30,505,468 | 31,180,346 | 31,898,619 | 32,155,678 | 32,142,427 | |||||||||||||||||||||||
Actual shares outstanding at period end | 30,185,732 | 29,925,612 | 29,917,982 | 29,912,082 | 31,111,647 | 31,346,903 | 32,082,321 | 32,081,241 | |||||||||||||||||||||||
Book value per common share at period end | $ | 41.72 | $ | 42.58 | $ | 40.64 | $ | 40.78 | $ | 39.92 | $ | 39.18 | $ | 38.02 | $ | 39.05 | |||||||||||||||
Tangible book value per common share at period end (1) | $ | 38.26 | $ | 39.08 | $ | 37.12 | $ | 37.29 | $ | 36.57 | $ | 35.86 | $ | 34.77 | $ | 35.80 | |||||||||||||||
Dividend per common share | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | |||||||||||||||
Performance Ratios (annualized): | |||||||||||||||||||||||||||||||
Return on average assets | (0.01)% | 0.65 | % | 0.91 | % | 0.96 | % | 0.86 | % | 1.49 | % | 1.29 | % | 0.54 | % | ||||||||||||||||
Return on average common equity | (0.11)% | 6.48 | % | 8.80 | % | 9.24 | % | 7.92 | % | 13.57 | % | 11.64 | % | 4.91 | % | ||||||||||||||||
Return on average tangible common equity (1) | (0.11)% | 7.08 | % | 9.61 | % | 10.08 | % | 8.65 | % | 14.82 | % | 12.67 | % | 5.35 | % | ||||||||||||||||
Net interest margin | 2.43 | % | 2.45 | % | 2.43 | % | 2.49 | % | 2.77 | % | 3.14 | % | 3.02 | % | 2.94 | % | |||||||||||||||
Efficiency ratio (2) | 51.1 | % | 48.9 | % | 48.8 | % | 47.2 | % | 51.6 | % | 42.8 | % | 40.6 | % | 66.6 | % | |||||||||||||||
Other Ratios: | |||||||||||||||||||||||||||||||
Allowance for credit losses to total loans (3) | 1.25 | % | 1.08 | % | 1.05 | % | 1.00 | % | 1.01 | % | 0.97 | % | 1.04 | % | 1.02 | % | |||||||||||||||
Allowance for credit losses to total nonperforming loans | 109 | % | 131 | % | 119 | % | 268 | % | 1,160 | % | 1,151 | % | 997 | % | 386 | % | |||||||||||||||
Nonperforming assets to total assets | 0.79 | % | 0.57 | % | 0.64 | % | 0.28 | % | 0.08 | % | 0.08 | % | 0.09 | % | 0.19 | % | |||||||||||||||
Net charge-offs (recoveries) (annualized) to average total loans (3) | 1.07 | % | 0.60 | % | 0.02 | % | 0.29 | % | 0.05 | % | 0.05 | % | — | % | (0.04)% | ||||||||||||||||
Tier 1 capital (to average assets) | 10.26 | % | 10.73 | % | 10.96 | % | 10.84 | % | 11.42 | % | 11.63 | % | 11.55 | % | 10.68 | % | |||||||||||||||
Total capital (to risk weighted assets) | 14.87 | % | 14.79 | % | 14.54 | % | 14.51 | % | 14.74 | % | 14.94 | % | 15.60 | % | 15.14 | % | |||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 13.80 | % | 13.90 | % | 13.68 | % | 13.55 | % | 13.75 | % | 14.03 | % | 14.64 | % | 14.06 | % | |||||||||||||||
Tangible common equity ratio (1) | 10.03 | % | 10.12 | % | 10.04 | % | 10.21 | % | 10.36 | % | 10.18 | % | 10.52 | % | 10.60 | % | |||||||||||||||
Average Balances (in thousands): | |||||||||||||||||||||||||||||||
Total assets | $ | 12,784,470 | $ | 12,283,303 | $ | 11,942,905 | $ | 11,960,111 | $ | 11,426,056 | $ | 11,255,956 | $ | 11,431,110 | $ | 11,701,679 | |||||||||||||||
Total earning assets | $ | 12,365,497 | $ | 11,837,722 | $ | 11,532,186 | $ | 11,546,050 | $ | 11,004,817 | $ | 10,829,703 | $ | 11,030,670 | $ | 11,300,267 | |||||||||||||||
Total loans (3) | $ | 7,988,941 | $ | 7,963,074 | $ | 7,795,144 | $ | 7,790,555 | $ | 7,712,023 | $ | 7,379,198 | $ | 7,282,589 | $ | 7,104,727 | |||||||||||||||
Total deposits | $ | 9,501,661 | $ | 9,471,369 | $ | 8,946,641 | $ | 8,514,938 | $ | 8,734,125 | $ | 9,524,139 | $ | 9,907,497 | $ | 10,184,886 | |||||||||||||||
Total borrowings | $ | 1,832,947 | $ | 1,401,917 | $ | 1,646,179 | $ | 2,102,507 | $ | 1,359,463 | $ | 411,060 | $ | 158,001 | $ | 152,583 | |||||||||||||||
Total shareholders' equity | $ | 1,289,656 | $ | 1,238,763 | $ | 1,235,162 | $ | 1,245,647 | $ | 1,240,978 | $ | 1,233,705 | $ | 1,271,753 | $ | 1,281,742 |
(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.
GAAP Reconciliation to Non-GAAP Financial Measures (unaudited) | |||||||||||
(dollars in thousands, except per share data) | |||||||||||
2024 | 2023 | 2023 | |||||||||
Tangible common equity | |||||||||||
Common shareholders' equity | $ | 1,259,413 | $ | 1,274,283 | $ | 1,241,958 | |||||
Less: Intangible assets | (104,611 | ) | (104,925 | ) | (104,226 | ) | |||||
Tangible common equity | $ | 1,154,802 | $ | 1,169,358 | $ | 1,137,732 | |||||
Tangible common equity ratio | |||||||||||
Total assets | $ | 11,612,648 | $ | 11,664,538 | $ | 11,088,867 | |||||
Less: Intangible assets | (104,611 | ) | (104,925 | ) | (104,226 | ) | |||||
Tangible assets | $ | 11,508,037 | $ | 11,559,613 | $ | 10,984,641 | |||||
Tangible common equity ratio | 10.03 | % | 10.12 | % | 10.36 | % | |||||
Per share calculations | |||||||||||
Book value per common share | $ | 41.72 | $ | 42.58 | $ | 39.92 | |||||
Less: Intangible book value per common share | (3.46 | ) | (3.50 | ) | (3.35 | ) | |||||
Tangible book value per common share | $ | 38.26 | $ | 39.08 | $ | 36.57 | |||||
Shares outstanding at period end | 30,185,732 | 29,925,612 | 31,111,647 | ||||||||
Three Months Ended | |||||||||||
2024 | 2023 | 2023 | |||||||||
Average tangible common equity | |||||||||||
Average common shareholders' equity | $ | 1,289,656 | $ | 1,238,763 | $ | 1,240,978 | |||||
Less: Average intangible assets | (104,718 | ) | (105,032 | ) | (104,231 | ) | |||||
Average tangible common equity | $ | 1,184,938 | $ | 1,133,731 | $ | 1,136,747 | |||||
Return on average tangible common equity | |||||||||||
Net (loss) income | $ | (338 | ) | $ | 20,225 | $ | 24,234 | ||||
Return on average tangible common equity | (0.11 | )% | 7.08 | % | 8.65 | % | |||||
Efficiency ratio | |||||||||||
Net interest income | $ | 74,698 | $ | 72,992 | $ | 75,024 | |||||
Noninterest income | 3,589 | 2,894 | 3,700 | ||||||||
Operating revenue | $ | 78,287 | $ | 75,886 | $ | 78,724 | |||||
Noninterest expense | $ | 39,997 | $ | 37,098 | $ | 40,584 | |||||
Efficiency ratio | 51.09 | % | 48.89 | % | 51.55 | % | |||||
Pre-provision net revenue | |||||||||||
Net interest income | $ | 74,698 | $ | 72,992 | $ | 75,024 | |||||
Noninterest income | 3,589 | 2,894 | 3,700 | ||||||||
Less: Noninterest expense | (39,997 | ) | (37,098 | ) | (40,584 | ) | |||||
Pre-provision net revenue | $ | 38,290 | $ | 38,788 | $ | 38,140 | |||||
Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, and the annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders' equity. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.
The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank's overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities.
Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans.
1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures that accompany this document.
2 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
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