IRVINE, Calif.--(BUSINESS WIRE)--Opus Bank ("Opus") (NASDAQ: “OPB”) announced today net income of $7.7 million, or $0.24 per diluted share, for the third quarter of 2014 compared with $10.3 million, or $0.32 per diluted share, for the second quarter of 2014 and $109.4 million, or $3.79 per diluted share, for the third quarter of 2013. The reduction in net income as compared to the second quarter of 2014 was mainly due to an $892,000 lower recapture of provision expense on our acquired loan portfolio and the addition of $2.3 million of provision expense related to specific loan relationships. Net income for the three months ended September 30, 2013 included the release of the valuation allowance on our deferred tax assets. Pre-tax pre-provision earnings increased to $17.0 million for the third quarter of 2014 from $16.3 million in the second quarter of 2014 and $8.5 million in the third quarter of 2013. For comparative purposes, pre-tax pre-provision earnings increased by 44% to $53.4 million for the nine months ended September 30, 2014 from $37.2 million for the nine months ended September 30, 2013.
Quarter and Year to Date 2014 Highlights
- Total assets increased 9% to a record $4.7 billion at September 30, 2014 from $4.3 billion at June 30, 2014 and $3.5 billion at September 30, 2013 due to continued strong loan and deposit growth.
- New loan fundings totaled a record $455.4 million in the third quarter of 2014, an increase of 34% from $338.9 million in the second quarter of 2014 and 45% from $313.7 million in the third quarter of 2013. Commercial Business and specialty banking divisions represented 46% of loan fundings during the third quarter of 2014 as compared to 31% during the second quarter of 2014. Loan commitments of $511.7 million were originated during the third quarter of 2014 compared to $433.5 million in the second quarter of 2014 and $381.2 in the third quarter of 2013. At September 30, 2014, our originated loan portfolio comprises 86% of our total loan portfolio.
- Total loans held-for-investment reached a record $3.7 billion at September 30, 2014, an increase of $311.1 million or 9% from June 30, 2014 and $1.1 billion or 42% from September 30, 2013.
- Asset quality continues to remain strong with nonperforming assets of $12.7 million, or 0.27%, of total assets at September 30, 2014 consistent with $13.0 million, or 0.30%, at June 30, 2014 and a decrease from $15.1 million, or 0.43%, at September 30, 2013. Provision expense during the third quarter of 2014 increased to $4.5 million compared to a recapture of $16,000 for the second quarter of 2014 and recapture of $1.2 million for the third quarter of 2013. The increase during the current quarter was driven by an $892,000 lower recapture of provision on our acquired loan portfolio, $1.6 million of specific reserves added for three nonperforming loans and a $713,000 increase in reserves for four loan relationships downgraded during the quarter. Each of these loan relationships remains current at September 30, 2014.
- The loan origination pipeline remains strong entering the fourth quarter of 2014 and continues to reflect the maturation of our Commercial Business and specialty banking divisions, which comprise 46% of our pipeline at October 1, 2014.
- Strong deposit growth in the Commercial, Retail and Correspondent Banks grew total deposits to $3.5 billion at September 30, 2014, a record increase of $352.6 million, or 11%, from June 30, 2014 and $1.0 billion, or 41%, from September 30, 2013. Noninterest-bearing deposits grew by 12% to $608.2 million during the current quarter from $544.1 million at the end of the second quarter of 2014, which outpaced the growth in our total deposit base. Our loan to deposit ratio declined to 106% at September 30, 2014 from 108% at June 30, 2014.
- Efficiency ratio improved to 59.6% during the third quarter of 2014 from 60.9% in the second quarter of 2014 and 72.8% in the third quarter of 2013. On a year-to-date basis, our efficiency ratio improved to 57.5% during the first nine months of 2014 from 66.0% during the first nine months of 2013.
- The ratio of noninterest expense to average assets declined to 2.2% in the third quarter of 2014 from 2.4% in the second quarter of 2014 and 2.7% in the third quarter of 2013. On a year-to-date basis, our ratio of noninterest expense to average assets decreased to 2.3% during the first nine months of 2014 from 3.1% during the first nine months of 2013.
- Net interest income increased to $38.3 million during the third quarter of 2014 from $37.5 million for the second quarter of 2014 and $30.1 million for the third quarter of 2013. During the third quarter of 2014, interest income from our originated loan portfolio increased by 11% from the second quarter of 2014 and 65% from the third quarter of 2013. Interest income from our originated loan portfolio made up 75% of total interest income from loans during the third quarter of 2014 as compared to 69% during the second quarter of 2014 and 59% during the third quarter of 2013. Net interest income increased to $115.5 million for the nine months ended September 30, 2014 from $99.0 million for the nine months ended September 30, 2013, mainly due to the 71% increase in interest income from originated loans during the comparable periods. Interest income from our originated loan portfolio comprised 66% of interest income from loans for the nine months ended September 30, 2014 as compared to 46% for the same period in 2013.
- Our Merchant Bank recorded advisory fees of $957,000 during the third quarter of 2014, which are reflected in noninterest income.
- Return on average tangible equity was 5.8% for the third quarter of 2014 as compared to 8.2% for the second quarter of 2014 and 6.1% tax adjusted for the third quarter of 2013. On a year-to-date basis, return on average tangible equity was 8.6% for the nine months ended September 30, 2014, as compared to 8.0% tax adjusted for the nine months ended September 30, 2013.
- Our tangible book value per as converted common share at September 30, 2014 was $16.80, an increase of 2% from $16.49 at June 30, 2014 and 18% from $14.19 at September 30, 2013.
- During the three months ended September 30, 2014, 11 bankers joined Opus across various banking divisions, including Healthcare Banking, Commercial Business Banking, Small Business Banking, Corporate Finance, Income Property Banking, and Structured Finance.
Stephen H. Gordon, founding Chairman, Chief Executive Officer and President of Opus Bank, stated, "Opus' accomplishments during the first nine months position us well for a strong fourth quarter of 2014 and for the year 2015. All of Opus' banking divisions contributed to our record growth in new loan fundings, relationship-based deposits and fee income and we see this growth continuing based on our strong current pipeline." Gordon added, "While we increased our allowance for loan losses related to a few specific loan relationships during the quarter, our overall asset quality continued to be stellar as evidenced by our low and declining non-performing assets ratio resulting from our disciplined underwriting processes and credit culture." Gordon concluded, "Our strong and diverse niche focus, driven by our entrepreneurial approach, resonates among all of Opus' constituents and continues to result in Opus being the fastest-growing bank in the Western U.S."
Net Interest Income
Net interest income increased to $38.3 million in the third quarter of 2014 from $37.5 million in the second quarter of 2014 and $30.1 million in the third quarter of 2013. Interest income from originated loans increased by $3.3 million from the second quarter of 2014 and $12.7 million from the third quarter of 2013 due to continued growth in the originated loan portfolio. Interest income from the acquired loan portfolio declined by $2.3 million from the prior quarter and $2.9 million from the prior year's third quarter due to lower average balances and less accretion income from loans that closed through sale, foreclosure and prepayment. Interest expense increased to $5.4 million for the third quarter of 2014 from $4.7 million for the second quarter of 2014 and $3.5 million for the third quarter of 2013. The increase in interest expense was driven by growth of $272.1 million in average interest bearing deposits from June 30, 2014 and $824.8 million from September 30, 2013 generated through our acquired and de novo retail banking offices and the continued success of our specialty banking divisions, including Fiduciary and Correspondent Banking.
Net interest income for the nine months ended September 30, 2014 increased 17% to $115.5 million from $99.0 million for the nine months ended September 30, 2013. Interest income for the nine months ended September 30, 2014 totaled $129.7 million, an increase of $21.2 million, or 20%, from $108.5 million during the nine months ended September 30, 2013 due to an increase of $35.5 million in interest income from the originated loans portfolio, offset by a decrease of $13.7 million in interest income from the acquired loan portfolio. Interest expense for the nine months ended September 30, 2014 totaled $14.2 million, an increase of $4.6 million, or 49%, from $9.5 million during the nine months ended September 30, 2013 due to increased average deposit balances.
Net interest margin decreased to 3.79% in the third quarter of 2014 from 4.04% in the second quarter of 2014 and 4.09% in the third quarter of 2013. Loan yield during the third quarter of 2014 decreased to 4.81% from 5.16% in the second quarter of 2014 and 5.29% in the third quarter of 2013 due to higher accretion income in prior quarters from loan sales and problem loan resolutions in the acquired loan portfolio. Cost of deposits increased to 0.56% for the third quarter of 2014 as compared to 0.53% for the second quarter of 2014 and 0.48% for the third quarter of 2013. Accretion income and amortization expense from the acquired loan and deposit portfolios contributed 0.42% to the net interest margin during the third quarter of 2014 compared to 0.63% in the second quarter of 2014 and 0.66% in the third quarter of 2013.
Net interest margin decreased to 4.19% for the nine months ended September 30, 2014 from 4.87% for the nine months ended September 30, 2013. Loan yield during the nine months ended September 30, 2014 was 5.29% compared to 6.12% for the nine months ended September 30, 2013. Cost of funds increased to 0.55% for the nine months ended September 30, 2014 from 0.50% for the nine months ended September 30, 2013. Accretion income and amortization expense from the acquired loan and deposit portfolios contributed 0.78% and 1.31% to net interest margin during the nine months ended September 30, 2014 and 2013, respectively.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.9 million in the third quarter of 2014, as compared to $4.1 million in the second quarter of 2014 and $1.0 million in the third quarter of 2013. Noninterest income during the third quarter of 2014 reflects $957,000 of advisory fees earned by the Merchant Bank. Noninterest income for the second quarter of 2014 included a gain of $1.8 million recorded from the sale of three real estate owned properties. During the current quarter we also partially restructured our investment securities portfolio by selling investment securities that had a history of accelerated principal paydowns and negative yields, recording a loss of $301,000. We reinvested the net proceeds from the sale into investment securities with higher and more stable yields.
Noninterest expense totaled $25.1 million in the third quarter of 2014, a decrease of 1% from $25.3 million in the second quarter of 2014 and an increase of 11% from $22.6 million in the third quarter of 2013. Noninterest expense for the nine months ended September 30, 2014 decreased to $72.1 million from $72.2 million for the nine months ended September 30, 2013. Our continued stable noninterest expense is a result of the efficiencies and scalability gained within our operating model.
Loans
Total loans held-for-investment, net of the allowance for loan losses, grew to $3.7 billion at September 30, 2014, an increase of 9% from $3.4 billion at June 30, 2014 and 43% from $2.6 billion at September 30, 2013.
Our originated loan portfolio totaled $3.2 billion as of September 30, 2014, an increase of 12% from $2.9 billion as of June 30, 2014 and 66% from $1.9 billion as of September 30, 2013. Our loan growth during the quarter was a result of $455.4 million of new loan fundings, including $246.7 million from Income Property Banking, $23.2 million from Healthcare Banking, $46.4 million from Institutional Syndications, $42.4 million from Commercial Business Banking, $57.1 million from Structured Finance, $29.9 million from Technology Banking and $8.5 million from Corporate Finance. In addition to loan originations for our portfolio, our Real Estate Capital Markets division closed $7 million of loans through third parties during the current quarter. Loan commitments originated during the current quarter totaled $511.7 million as compared to $433.5 million in the second quarter of 2014 and $381.2 million in the third quarter of 2013. At September 30, 2014, our total unfunded commitments on originated loans totaled $238.9 million.
Our acquired loan portfolio totaled $508.6 million as of September 30, 2014, a decrease of 5% from $533.3 million as of June 30, 2014 and 24% from $673.1 million at September 30, 2013. The decrease in the current quarter was driven by the sale of $1.1 million in acquired single-family residential loans, as well as normal payoffs and scheduled amortization. At September 30, 2014, our total unfunded commitments on acquired loans totaled $34.6 million.
Asset Quality
We recorded a provision for loan losses of $4.5 million in the third quarter of 2014 compared to a recapture of $16,000 in the second quarter of 2014 and recapture of $1.2 million in the third quarter of 2013. A provision recapture of $509,000 on the acquired loan portfolio was recorded during the third quarter of 2014 compared to a recapture of $1.4 million in the prior quarter that was primarily driven by improved expected cash flows and credit performance. A provision for loan losses of $5.1 million was recorded on the originated loan portfolio during the third quarter of 2014. The increase in provision for loan losses was primarily driven by $1.6 million of specific reserves established for three impaired loan relationships, $713,000 related to downgrades of four originated loan relationships during the quarter and overall loan growth in the originated portfolio. We believe that the drivers of the three impaired loan relationships are not pervasive to our overall asset quality and evidence our underwriting methodology, which promotes frequent client interaction and proactive recognition of changing risk profiles. We continue to experience strong asset quality as evidenced by the stable balance of nonperforming assets and continued decline in nonperforming assets to total assets to 0.27% as of September 30, 2014 from 0.30% at June 30, 2014 and 0.43% at September 30, 2013.
Our allowance for loan losses represented 0.58% of our total loan portfolio at September 30, 2014, as compared to 0.50% at June 30, 2014 and 0.70% at September 30, 2013. Our acquired loan portfolio has a remaining discount of $47.1 million at September 30, 2014, which when added to the allowance for loan losses on the acquired loan portfolio, results in a coverage ratio of 8.99% to total acquired loans. Our allowance for loan losses on originated loans results in a coverage ratio of 0.58% at September 30, 2014. The coverage ratio for the total loan portfolio at September 30, 2014 was 1.82%, a decrease from 1.95% at June 30, 2014 and 3.45% at September 30, 2013, declining as the originated loan portfolio continues to increase as a percentage of the total loan portfolio.
Deposits and Borrowings
Deposits totaled $3.5 billion as of September 30, 2014, an increase of 11% from $3.2 billion as of June 30, 2014 and 41% from $2.5 billion as of September 30, 2013. The record increase of $352.6 million was primarily driven by growth of $320.3 million in our Retail Bank and $32.3 million in our Commercial and Correspondent Banks during the third quarter of 2014. This growth was concentrated in our core transaction account deposits, which increased by $349.5 million, or 14%, from the second quarter of 2014. Noninterest-bearing deposits increased to $608.2 million during the current quarter compared to $544.1 million in the second quarter of 2014 and $473.6 million in the third quarter of 2013. Transaction accounts increased to 82% of total deposits at September 30, 2014 from 80% at June 30, 2014 and 74% at September 30, 2013. At September 30, 2014, business deposits represented 38% of total deposits.
Federal Home Loan Bank advances totaled $410.0 million as of September 30, 2014, an increase from $397.5 million as of June 30, 2014 and $300.0 million at September 30, 2013.
Capital
Capital ratios continue to be strong and well in excess of bank regulatory requirements. Our Tier 1 leverage and total risk-based capital ratios were 11.74% and 14.60% for the third quarter of 2014, respectively, compared to 12.11% and 15.33% for the second quarter of 2014, respectively. Stockholders’ equity totaled $784.6 million as of September 30, 2014, an increase of 1% from $775.4 million as of June 30, 2014 driven primarily by our quarterly net income. Our tangible book value per as converted common share increased to $16.80 as of September 30, 2014 from $16.49 as of June 30, 2014 and $14.19 at September 30, 2013.
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Conference Call and Webcast Details |
| Date: Monday, October 27, 2014 |
| Time: 8:00 a.m. PT (11:00 a.m. ET) |
| Phone Number: (855) 265-3237 |
| Conference Id: 10257945 |
|
Webcast URL: http://investor.opusbank.com/events.cfm |
Analysts, investors, and the general public may listen to the Bank's discussion of its third quarter earnings and performance and participate in the question/answer session by using the phone number listed below or through a live webcast of the conference available through a link on the investor relations page of Opus’ website at: http://investor.opusbank.com/events.cfm. The webcast will include a slide presentation, enabling conference participants to experience the discussion with greater impact. It is recommended that participants dial into the conference call or log into the webcast approximately 10 minutes prior to the call.
Replay Information: for those who are unable to participate in the call, an archive of the call will be available beginning approximately 2 hours following the end of the call. To listen to the call replay dial (855) 859-2056, or for international callers dial (404) 537-3406, the access code for either replay number is 10257945. The call replay will be available until November 27, 2014.
About Opus Bank
Opus Bank is an FDIC insured California-chartered commercial bank with over $4.7 billion of total assets, $3.7 billion of total loans, and $3.5 billion in total deposits as of September 30, 2014. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial business, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender. Opus Bank is an Equal Housing Lender. Opus Bank operates 58 banking offices, including two in the Phoenix metropolitan area of Arizona, 32 in California and 24 in the Seattle/Puget Sound region in Washington. For additional information about Opus Bank, please visit our website: www.opusbank.com.
Forward-Looking Statements
This release and the aforementioned conference call and webcast may include forward-looking statements related to Opus' plans, beliefs and goals, which involve certain risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: competitive pressure in the banking industry; changes in the interest rate environment; the health of the economy, either nationally or regionally; the deterioration of credit quality, which would cause an increase in the provision for possible loan and lease losses; changes in the regulatory environment; changes in business conditions, particularly in California real estate; volatility of rate sensitive deposits; asset/liability matching risks and liquidity risks; and changes in the securities markets. For a discussion of these and other risks and uncertainties, see Opus' filings with the Federal Deposit Insurance Corporation, including, but not limited to, the risk factors in Opus' quarterly report on Form 10-Q. These filings are available on the investor relations page of Opus' website at: www.opusbank.com.
Opus undertakes no obligation to revise or publicly release any revision to these forward-looking statements.
| Consolidated Statement of Operations | ||||||||||||||||||||||||
| (unaudited) | For the three months ended | For the nine months ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
| ($ in thousands, except per share amounts) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||
| Loans | $ | 42,989 | $ | 42,015 | $ | 33,196 | $ | 128,902 | $ | 107,116 | ||||||||||||||
| Investment securities | 478 | (7 | ) | 212 | 351 | 1,072 | ||||||||||||||||||
| Due from banks | 177 | 164 | 120 | 433 | 329 | |||||||||||||||||||
| Total interest income | 43,644 | 42,172 | 33,528 | 129,686 | 108,517 | |||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Deposits | 4,737 | 4,095 | 2,955 | 12,481 | 8,015 | |||||||||||||||||||
| Federal Home Loan Bank advances | 631 | 579 | 504 | 1,690 | 1,511 | |||||||||||||||||||
| Total interest expense | 5,368 | 4,674 | 3,459 | 14,171 | 9,526 | |||||||||||||||||||
| Net interest income | 38,276 | 37,498 | 30,069 | 115,515 | 98,991 | |||||||||||||||||||
|
Provision (recapture) for loan losses |
4,548 | (16 | ) | (1,242 | ) | 4,334 | 861 | |||||||||||||||||
|
Net interest income after provision |
33,728 | 37,514 | 31,311 | 111,181 | 98,130 | |||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||
| Service charges on deposit accounts | 1,543 | 1,512 | 1,267 | 4,570 | 3,455 | |||||||||||||||||||
| Gain on sale of loans | — | — | 53 | — | 306 | |||||||||||||||||||
|
Gain on sale or disposition of assets |
254 | 109 | 28 | 495 | 4,846 | |||||||||||||||||||
| Gain (loss) from real estate owned, net | 8 | 1,795 | (1,159 | ) | 567 | (1,672 | ||||||||||||||||||
| (Loss) gain on sale of securities |
(301 |
) |
— |
— |
(301 | ) | 108 | |||||||||||||||||
| Bank-owned life insurance, net | 447 | 219 | 240 | 885 | 723 | |||||||||||||||||||
| Other income | 1,910 | 443 |
604 |
3,681 | 2,631 | |||||||||||||||||||
| Total noninterest income | 3,861 | 4,078 | 1,033 | 9,897 | 10,397 | |||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||
| Compensation and benefits | 13,568 | 13,145 | 11,860 | 40,708 | 40,439 | |||||||||||||||||||
| Professional services | 1,671 | 1,427 | 1,537 | 3,126 | 4,915 | |||||||||||||||||||
| Occupancy expense | 2,852 | 2,790 | 2,690 | 8,473 | 7,669 | |||||||||||||||||||
| Depreciation and amortization | 1,335 | 1,339 | 1,680 | 4,007 | 4,868 | |||||||||||||||||||
|
Deposit insurance and regulatory assessments |
712 | 609 | 444 | 1,952 | 1,638 | |||||||||||||||||||
| Insurance expense | 287 | 309 | 210 | 827 | 624 | |||||||||||||||||||
| Data processing | 760 | 724 | 830 | 2,242 | 2,164 | |||||||||||||||||||
| Software licenses and maintenance | 391 | 409 | 500 | 1,329 | 1,484 | |||||||||||||||||||
| Office services | 533 | 907 | 684 | 2,652 | 2,143 | |||||||||||||||||||
|
Amortization of core deposit intangibles |
627 | 627 | 567 | 1,881 | 1,642 | |||||||||||||||||||
| Advertising and marketing | 751 | 647 | 457 | 1,405 | 1,262 | |||||||||||||||||||
| Litigation (recovery) expense | (102 | ) | (240 | ) | — | (2,125 | ) | 90 | ||||||||||||||||
| Other expenses | 1,737 | 2,624 | 1,187 | 5,577 | 3,291 | |||||||||||||||||||
| Total noninterest expense | 25,122 | 25,317 | 22,646 | 72,054 | 72,229 | |||||||||||||||||||
| Income before income tax expense | 12,467 | 16,275 | 9,698 | 49,024 | 36,298 | |||||||||||||||||||
| Income tax expense (benefit) | 4,739 | 6,008 | (99,688 | ) | 17,766 | (99,660 | ||||||||||||||||||
| Net income | $ | 7,728 | $ | 10,267 | $ | 109,386 | $ | 31,258 | $ | 135,958 | ||||||||||||||
| Basic earnings per common share | $ | 0.24 | $ | 0.33 | $ | 3.82 | $ | 1.03 | $ | 4.74 | ||||||||||||||
| Diluted earnings per common share | 0.24 | 0.32 | 3.79 | 1.00 | 4.71 | |||||||||||||||||||
| Weighted average shares - basic | 28,100,634 | 26,880,953 | 23,040,247 | 26,046,941 | 23,035,153 | |||||||||||||||||||
| Weighted average shares - diluted | 32,773,382 | 31,891,723 | 28,897,311 | 31,308,491 | 28,886,105 | |||||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||||
| (unaudited) | As of | |||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||
| ($ in thousands, except share amounts) | 2014 | 2014 | 2013 | |||||||||||||||
| Assets | ||||||||||||||||||
| Cash and due from banks | $ | 31,904 | $ | 46,313 | $ | 37,910 | ||||||||||||
| Due from banks – interest-bearing | 287,054 | 203,068 | 109,913 | |||||||||||||||
| Investment securities available-for-sale, at fair value | 190,326 | 188,986 | 233,587 | |||||||||||||||
| Loans held-for-sale | 2,500 | — | — | |||||||||||||||
| Loans held-for-investment | 3,728,108 | 3,417,019 | 2,617,573 | |||||||||||||||
| Less allowance for loan losses | (21,568 | ) | (17,171 | ) | (18,435 | ) | ||||||||||||
| Loans held-for-investment, net | 3,706,540 | 3,399,848 | 2,599,138 | |||||||||||||||
| Real estate owned | 6,535 | 7,343 | 11,712 | |||||||||||||||
| Premises and equipment, net | 34,617 | 35,758 | 39,765 | |||||||||||||||
| Goodwill | 238,528 | 238,528 | 238,528 | |||||||||||||||
| Core deposit intangible, net | 13,235 | 13,862 | 15,743 | |||||||||||||||
| Deferred tax assets, net | 83,543 | 88,654 | 101,148 | |||||||||||||||
| Cash surrender value of bank owned life insurance, net | 61,055 | 60,425 | 34,418 | |||||||||||||||
| Accrued interest receivable | 13,310 | 12,459 | 10,517 | |||||||||||||||
| Federal Home Loan Bank stock | 30,645 | 30,756 | 26,606 | |||||||||||||||
| Other assets | 22,433 | 20,091 | 15,631 | |||||||||||||||
| Total assets | $ | 4,722,225 | $ | 4,346,091 | $ | 3,474,616 | ||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Noninterest-bearing | $ | 608,160 | $ | 544,131 | $ | 473,634 | ||||||||||||
| Interest-bearing | 2,276,371 | 1,990,946 | 1,360,152 | |||||||||||||||
| Time deposits – under $100,000 | 201,360 | 208,821 | 234,753 | |||||||||||||||
| Time deposits – $100,000 and over | 419,810 | 409,224 | 421,716 | |||||||||||||||
| Total deposits | 3,505,701 | 3,153,122 | 2,490,255 | |||||||||||||||
| Federal Home Loan Bank advances | 410,000 | 397,500 | 300,000 | |||||||||||||||
| Accrued interest payable | 382 | 416 | 323 | |||||||||||||||
| Other liabilities | 21,557 | 19,607 | 21,702 | |||||||||||||||
| Total liabilities | 3,937,640 | 3,570,645 | 2,812,280 | |||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||
| Preferred stock: | ||||||||||||||||||
|
Authorized 200,000,000 shares; issued 72,411 and |
68,768 | 68,768 | 106,908 | |||||||||||||||
| Common stock, no par value per share: | ||||||||||||||||||
|
Authorized 200,000,000 shares; issued 28,237,391 and |
536,498 | 536,502 | 418,043 | |||||||||||||||
| Additional paid-in capital | 39,618 | 38,333 | 36,603 | |||||||||||||||
| Retained earnings | 142,420 | 134,692 | 104,008 | |||||||||||||||
| Treasury stock, at cost; 136,459 and 136,179 and 87,093 shares, respectively | (2,613 | ) | (2,604 | ) | (1,512 | ) | ||||||||||||
| Accumulated other comprehensive loss | (106 | ) | (245 | ) | (1,714 | ) | ||||||||||||
| Total stockholders’ equity | 784,585 | 775,446 | 662,336 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,722,225 | $ | 4,346,091 | $ | 3,474,616 | ||||||||||||
| Selected Financial Data | ||||||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| (unaudited) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Return on average assets | 0.7 | % | 1.0 | % | 13.1 | % | 1.0 | % | 5.8 | % | ||||||||||
| Return on average assets, tax adjusted (1) | 0.7 | 1.0 | 0.8 | 1.0 | 1.0 | |||||||||||||||
| Return on average stockholders' equity | 3.9 | 5.5 | 77.6 | 5.7 | 33.2 | |||||||||||||||
| Return on average stockholders' equity, tax adjusted (1) | 3.9 | 5.5 | 3.8 | 5.7 | 4.9 | |||||||||||||||
| Return on average tangible equity | 5.8 | 8.2 | 141.2 | 8.6 | 61.6 | |||||||||||||||
| Return on average tangible equity, tax adjusted (1) | 5.8 | 8.2 | 6.1 | 8.6 | 8.0 | |||||||||||||||
| Efficiency ratio (2) | 59.6 | 60.9 | 72.8 | 57.5 | 66.0 | |||||||||||||||
| Noninterest expense to average assets | 2.2 | 2.4 | 2.7 | 2.3 | 3.1 | |||||||||||||||
| Yield on interest-earning assets | 4.32 | 4.55 | 4.56 | 4.71 | 5.34 | |||||||||||||||
| Cost of deposits (3) | 0.56 | 0.53 | 0.48 | 0.54 | 0.48 | |||||||||||||||
| Cost of funds (4) | 0.57 | 0.54 | 0.50 | 0.55 | 0.50 | |||||||||||||||
| Net interest margin | 3.79 | 4.04 | 4.09 | 4.19 | 4.87 | |||||||||||||||
| (1) | Tax adjusted for the three and nine months ended September 30, 2013 for the release of the valuation allowance on deferred tax assets during 2013. See computation in "Non-GAAP Financial Measures" section. | ||
| (2) | The efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income before provision for loan losses and noninterest income. | ||
| (3) | Calculated as interest expense on deposits divided by total average deposits. | ||
| (4) | Calculated as total interest expense divided by average total deposits and FHLB advances. |
| Capital Ratios | As of | ||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||
| (unaudited) | 2014 | 2014 | 2013 | ||||||||||||
| Tier 1 leverage ratio | 11.74 | % | 12.11 | % | 11.08 | % | |||||||||
| Tier 1 risk-based capital ratio | 13.98 | 14.78 | 13.82 | ||||||||||||
| Total risk-based capital ratio | 14.60 | 15.33 | 14.59 | ||||||||||||
| Loan Originations | ||||||||||||||||||||
| (unaudited) | For the three months ended | For the nine months ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| ($ in thousands) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Loans originated: | ||||||||||||||||||||
| Real estate mortgage loans: | ||||||||||||||||||||
| Single-family residential | $ | — | $ | 3,838 | $ | 17,618 | $ | 29,092 | $ | 58,498 | ||||||||||
| Multifamily residential | 178,701 | 186,190 | 226,717 | 594,089 | 567,524 | |||||||||||||||
| Commercial real estate | 122,373 | 69,918 | 34,495 | 276,137 | 72,614 | |||||||||||||||
| Construction and land loans | 93 | 446 | 2,834 | 1,593 | 2,834 | |||||||||||||||
| Commercial business loans | 154,249 | 76,320 | 31,539 | 340,012 | 92,207 | |||||||||||||||
| Small Business Administration loans | — | 1,481 | 532 | 3,637 | 7,003 | |||||||||||||||
| Consumer and other loans | — | 680 | — | 680 | 280 | |||||||||||||||
| Total loan originations | $ | 455,416 | $ | 338,873 | $ | 313,735 | $ | 1,245,240 | $ | 800,960 | ||||||||||
| Composition of Loan Portfolio | As of | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||||||
| (unaudited) | 2014 | 2014 | 2013 | ||||||||||||||||||||
| % of | % of | % of | |||||||||||||||||||||
| ($ in thousands) | Amount | Total loans | Amount | Total loans | Amount | Total loans | |||||||||||||||||
| Originated loans held-for-investment | |||||||||||||||||||||||
| Real estate mortgage loans: | |||||||||||||||||||||||
| Single-family residential | $ | 133,150 | 3.6 | % | $ | 143,215 | 4.2 | % | $ | 133,854 | 5.1 | % | |||||||||||
| Multifamily residential | 1,993,522 | 53.5 | 1,902,754 | 55.7 | 1,445,556 | 55.2 | |||||||||||||||||
| Commercial real estate | 609,872 | 16.4 | 492,379 | 14.4 | 181,848 | 6.9 | |||||||||||||||||
| Construction and land loans | 6,106 | 0.2 | 6,030 | 0.2 | 2,785 | 0.1 | |||||||||||||||||
| Commercial business loans | 451,069 | 12.1 | 314,956 | 9.2 | 159,669 | 6.1 | |||||||||||||||||
| Small Business Administration loans | 25,095 | 0.7 | 23,610 | 0.7 | 20,069 | 0.8 | |||||||||||||||||
| Consumer and other loans | 649 | 0.0 | 734 | 0.0 | 655 | 0.0 | |||||||||||||||||
| Total originated loans | 3,219,463 | 86.4 | 2,883,678 | 84.4 | 1,944,436 | 74.3 | |||||||||||||||||
| Acquired loans held-for-investment | |||||||||||||||||||||||
| Real estate mortgage loans: | |||||||||||||||||||||||
| Single-family residential | 138,424 | 3.7 | 145,133 | 4.2 | 198,638 | 7.6 | |||||||||||||||||
| Multifamily residential | 104,291 | 2.8 | 108,338 | 3.2 | 130,149 | 5.0 | |||||||||||||||||
| Commercial real estate | 126,584 | 3.4 | 135,320 | 4.0 | 172,917 | 6.6 | |||||||||||||||||
| Construction and land loans | 4,063 | 0.1 | 4,117 | 0.1 | 6,601 | 0.3 | |||||||||||||||||
| Commercial business loans | 31,117 | 0.8 | 31,168 | 0.9 | 43,800 | 1.7 | |||||||||||||||||
| Small Business Administration loans | 69,210 | 1.9 | 72,109 | 2.1 | 80,278 | 3.1 | |||||||||||||||||
| Consumer and other loans | 34,956 | 0.9 | 37,156 | 1.1 | 40,754 | 1.6 | |||||||||||||||||
| Total acquired loans | 508,645 | 13.6 | 533,341 | 15.6 | 673,137 | 25.7 | |||||||||||||||||
| Total gross loans | $ | 3,728,108 | 100.0 | % | $ | 3,417,019 | 100.0 | % | $ | 2,617,573 | 100.0 | % | |||||||||||
| Composition of Deposits | As of | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||
| (unaudited) | 2014 | 2014 | 2013 | |||||||||||||||||||||
| % of | % of | % of | ||||||||||||||||||||||
| ($ in thousands) | Amount | Total deposits | Amount | Total deposits | Amount | Total deposits | ||||||||||||||||||
| Noninterest bearing | $ | 608,160 | 17.35 | % | $ | 544,131 | 17.26 | % | $ | 473,634 | 19.02 | % | ||||||||||||
| Interest bearing | 2,276,371 | 64.93 | 1,990,946 | 63.14 | 1,360,152 | 54.62 | ||||||||||||||||||
| Time deposits - under $100,000 | 201,360 | 5.74 | 208,821 | 6.62 | 234,753 | 9.43 | ||||||||||||||||||
| Time deposits - $100,000 and over | 419,810 | 11.98 | 409,224 | 12.98 | 421,716 | 16.93 | ||||||||||||||||||
| Total deposits | $ | 3,505,701 | 100.0 | % | $ | 3,153,122 | 100.0 | % | $ | 2,490,255 | 100.0 | % | ||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the three months ended | |||||||||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||||||||||||||||||||
| (unaudited) | 2014 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
| Average | Yields/ | Average | Yields/ | Average | Yields/ | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Balance | Interest | Rates | Balance | Interest | Rates | Balance | Interest | Rates | ||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||
| Due from banks | $ | 280,686 | $ | 177 | 0.25 | % | $ | 256,297 | $ | 164 | 0.26 | % | $ | 180,897 | $ | 120 | 0.26 | % | |||||||||||||||||||
| Investment securities | 183,952 | 478 | 1.03 | 198,111 | (7 | ) | (0.01 | ) | 243,582 | 212 | 0.35 | ||||||||||||||||||||||||||
| Acquired loans | 519,500 | 10,786 | 8.24 | 551,951 | 13,110 | 9.53 | 702,324 | 13,660 | 7.72 | ||||||||||||||||||||||||||||
| Originated Loans | 3,027,740 | 32,203 | 4.22 | 2,714,324 | 28,905 | 4.27 | 1,789,117 | 19,536 | 4.33 | ||||||||||||||||||||||||||||
| Total loans | $ | 3,547,240 | $ | 42,989 | 4.81 | $ | 3,266,275 | $ | 42,015 | 5.16 | $ | 2,491,441 | $ | 33,196 | 5.29 | ||||||||||||||||||||||
| Total interest-earning assets | 4,011,878 | $ | 43,644 | 4.32 | 3,720,683 | $ | 42,172 | 4.55 | 2,915,920 | $ |
33,528 |
4.56 | |||||||||||||||||||||||||
| Noninterest-earning assets | 525,307 | 509,987 | 396,320 | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,537,185 | $ | 4,230,670 | $ | 3,312,240 | |||||||||||||||||||||||||||||||
|
Liabilities and stockholders’ equity: |
|||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 2,175,834 | $ | 3,483 | 0.64 | % | $ | 1,892,448 | $ | 2,824 | 0.60 | % | $ | 1,306,995 | $ | 1,572 | 0.48 | % | |||||||||||||||||||
| Time deposits | 618,481 | 1,254 | 0.80 | 629,816 | 1,271 | 0.81 | 662,480 | 1,383 | 0.83 | ||||||||||||||||||||||||||||
|
Total interest-bearing deposits |
$ | 2,794,315 | $ | 4,737 | 0.67 | $ | 2,522,264 | $ | 4,095 | 0.65 | $ | 1,969,475 | $ | 2,955 | 0.60 | ||||||||||||||||||||||
| FHLB advances | 380,245 | 631 | 0.66 | 354,835 | 579 | 0.65 | 306,957 | 504 | 0.65 | ||||||||||||||||||||||||||||
|
Total interest-bearing liabilities |
$ | 3,174,560 | $ | 5,368 | 0.67 | $ | 2,877,099 | $ | 4,674 | 0.65 | $ | 2,276,432 | $ | 3,459 | 0.60 | ||||||||||||||||||||||
| Noninterest-bearing deposits | 558,484 | 581,232 | 458,195 | ||||||||||||||||||||||||||||||||||
| Other liabilities | 20,203 | 18,903 | 18,095 | ||||||||||||||||||||||||||||||||||
| Total liabilities | $ | 3,753,247 | $ | 3,477,234 | $ | 2,752,722 | |||||||||||||||||||||||||||||||
| Total stockholders’ equity | $ | 783,938 | $ | 753,436 | $ | 559,518 | |||||||||||||||||||||||||||||||
|
Total liabilities and stockholders’ equity |
$ | 4,537,185 | $ | 4,230,670 | $ | 3,312,240 | |||||||||||||||||||||||||||||||
| Net interest income | $ | 38,276 | $ | 37,498 | $ | 30,069 | |||||||||||||||||||||||||||||||
| Net interest spread (1) | 3.65 | % | 3.90 | % | 3.96 | % | |||||||||||||||||||||||||||||||
| Net interest margin (2) | 3.79 | % | 4.04 | % | 4.09 | % | |||||||||||||||||||||||||||||||
| (1) | Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities. | ||
| (2) |
Net interest margin is computed by dividing net interest income by total average interest-earning assets. |
||
| Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||||||||||||
| For the nine months ended September 30, | ||||||||||||||||||||||||||||
| (unaudited) | 2014 | 2013 | ||||||||||||||||||||||||||
| Average | Yields/ | Average | Yields/ | |||||||||||||||||||||||||
| ($ In thousands) | Balance | Interest | Rates | Balance | Interest | Rates | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||
| Due from banks | $ | 228,254 | $ | 433 | 0.25 | % | $ | 166,466 | $ | 329 | 0.26 | % | ||||||||||||||||
| Investment securities | 199,069 | 351 | 0.24 | 212,059 | 1,072 | 0.68 | ||||||||||||||||||||||
| Acquired loans | 556,728 | 43,294 | 10.40 | 786,743 | 57,014 | 9.69 | ||||||||||||||||||||||
| Originated Loans | 2,698,267 | 85,608 | 4.24 | 1,553,782 | 50,102 | 4.31 | ||||||||||||||||||||||
| Total loans | $ | 3,254,995 | $ | 128,902 | 5.29 | $ | 2,340,525 | $ | 107,116 | 6.12 | ||||||||||||||||||
| Total interest-earning assets | $ | 3,682,318 | $ | 129,686 | 4.71 | $ | 2,719,050 | $ | 108,517 | 5.34 | ||||||||||||||||||
| Noninterest-earning assets | 516,684 | 402,175 | ||||||||||||||||||||||||||
| Total assets | $ | 4,199,002 | $ | 3,121,225 | ||||||||||||||||||||||||
| Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 1,916,096 | $ | 8,636 | 0.60 | % | $ | 1,190,896 | $ | 4,058 | 0.46 | % | ||||||||||||||||
| Time deposits | 631,964 | 3,845 | 0.81 | 635,701 | 3,957 | 0.83 | ||||||||||||||||||||||
| Total interest bearing deposits | $ | 2,548,060 | $ | 12,481 | 0.65 | $ | 1,826,597 | $ | 8,015 | 0.59 | ||||||||||||||||||
| FHLB advances | 344,258 | 1,690 | 0.66 | 328,432 | 1,511 | 0.62 | ||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 2,892,318 | $ | 14,171 | 0.66 | $ | 2,155,029 | $ | 9,526 | 0.59 | ||||||||||||||||||
| Noninterest-bearing deposits | 547,777 | 402,926 | ||||||||||||||||||||||||||
| Other liabilities | 20,126 | 16,386 | ||||||||||||||||||||||||||
| Total liabilities | $ | 3,460,221 | $ | 2,574,341 | ||||||||||||||||||||||||
| Total stockholders’ equity | 738,781 | 546,884 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,199,002 | $ | 3,121,225 | ||||||||||||||||||||||||
| Net interest income | $ | 115,515 | $ | 98,991 | ||||||||||||||||||||||||
| Net interest spread (1) | 4.05 | % | 4.75 | % | ||||||||||||||||||||||||
| Net interest margin (2) | 4.19 | % | 4.87 | % | ||||||||||||||||||||||||
| (1) | Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities. | ||
| (2) | Net interest margin is computed by dividing net interest income by total average interest-earning assets. | ||
| Asset Quality Information | ||||||||||||||||||
| (unaudited) | As of | |||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||
| ($ in thousands) | 2014 | 2014 | 2013 | |||||||||||||||
| Nonperforming assets | ||||||||||||||||||
| Nonaccrual loans | $ | 6,182 | $ | 5,665 | $ | 3,373 | ||||||||||||
| Real estate owned | 6,535 | 7,343 | 11,712 | |||||||||||||||
| Total nonperforming assets | 12,717 | 13,008 | 15,085 | |||||||||||||||
| Nonperforming assets to total assets | 0.27 | % | 0.30 | % | 0.43 | % | ||||||||||||
| Accruing loans 90 days or more past due | $ | 2,758 | $ | 3,437 | $ | 6,250 | ||||||||||||
| Accruing troubled debt restructured loans | 66 | 82 | 29 | |||||||||||||||
| Allowance for loan losses - Originated loans | 18,719 | 13,813 | 10,269 | |||||||||||||||
| Allowance for loan losses - Acquired loans | 2,849 | 3,358 | 8,166 | |||||||||||||||
| Total allowance for loan losses | 21,568 | 17,171 | 18,435 | |||||||||||||||
| Remaining acquisition discount on acquired loans | $ | 47,132 | $ | 50,280 | $ | 74,359 | ||||||||||||
| Allowance for loan losses to non-accrual loans | 348.9 | % | 303.1 | % | 546.5 | % | ||||||||||||
| Allowance for loan losses acquired loans to acquired loans | 0.56 | 0.63 | 1.21 | |||||||||||||||
| Allowance for loan losses originated loans to originated loans | 0.58 | 0.48 | 0.53 | |||||||||||||||
| Total allowance for loan losses to total loans | 0.58 | 0.50 | 0.70 | |||||||||||||||
|
Allowance for loan losses and remaining acquisition discount |
8.99 | 9.19 | 11.04 | |||||||||||||||
|
Allowance for loan losses and remaining acquisition discount |
1.82 | 1.95 | 3.45 | |||||||||||||||
| (1) | Remaining acquisition discount is added back to acquired loans held for investment to calculate gross loans and added to allowance for loan losses to calculate the coverage ratios. | ||
Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted accounting principles in the United States ("GAAP"). We believe that the presentation of certain non-GAAP financial measures assists investors in assessing our financial results. These non-GAAP measures include our tax adjusted return on average assets, tax adjusted return on average stockholders' equity, tax adjusted return on average tangible equity, net interest income excluding acquisition accounting and tangible book value per as converted common share. These non-GAAP measures should be taken together with the corresponding GAAP measures and ratios and should not be considered a substitute of the GAAP measures and ratios.
The following tables present a reconciliation of the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios:
| Non-GAAP tax adjusted return on average assets | |||||||||||||||||||||||||
| (unaudited) | For the three months ended | For the nine months ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
| ($ in thousands) | 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
| Average assets | $ | 4,537,185 | $ | 4,230,670 | $ | 3,312,240 | $ | 4,199,002 | $ | 3,121,225 | |||||||||||||||
| Tax adjusted net income | |||||||||||||||||||||||||
| Net income | $ | 7,728 | 10,267 | $ | 109,386 | $ | 31,258 | $ | 135,958 | ||||||||||||||||
|
Less: Reversal of tax expense including valuation allowance on and adjustments to deferred tax assets |
— | — | (99,688 | ) | — | (99,660 | ) | ||||||||||||||||||
|
Net income before reversal of tax expense including valuation allowance on and adjustments to deferred tax assets |
7,728 | 10,267 | 9,698 | 31,258 | 36,298 | ||||||||||||||||||||
|
Less: Tax-effect at 35% for three and nine months ended September 30, 2013 |
— | — | (3,394 | ) | — | (12,704 | ) | ||||||||||||||||||
| Tax adjusted net income | $ | 7,728 | $ | 10,267 | $ | 6,304 | $ | 31,258 | $ | 23,594 | |||||||||||||||
| Return on average assets | 0.68 | % | 0.97 | % | 13.10 | % | 1.00 | % | 5.82 | % | |||||||||||||||
| Non-GAAP tax adjusted return on average assets (1) | 0.68 | 0.97 | 0.76 | 1.00 | 1.01 | ||||||||||||||||||||
| (1) | Return on average assets are tax adjusted for the three months and nine months ended September 30, 2013 for the release of the valuation allowance on deferred tax assets during 2013. |
| Non-GAAP tax adjusted return on average tangible equity | ||||||||||||||||||||||||||
| (unaudited) | For the three months ended | For the nine months ended | ||||||||||||||||||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||||||||
| ($ in thousands) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Tax adjusted average tangible equity: | ||||||||||||||||||||||||||
| Average stockholders' equity | $ | 783,938 | $ | 753,436 | $ | 559,518 | $ | 738,781 | $ | 546,884 | ||||||||||||||||
| Add: Average deferred tax assets | — | — | 101,100 | — | 101,100 | |||||||||||||||||||||
|
Tax adjusted average stockholders' equity |
783,938 | 753,436 | 660,618 | 738,781 | 647,984 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Average goodwill | 238,528 |
|
238,528 | 237,767 | 238,528 | 237,531 | ||||||||||||||||||||
| Average core deposit intangibles | 13,603 | 14,236 | 14,458 | 14,242 | 14,427 | |||||||||||||||||||||
| Tax adjusted average tangible equity | 531,807 | 500,672 | 408,393 | 486,011 | 396,026 | |||||||||||||||||||||
| Tax adjusted net income: | ||||||||||||||||||||||||||
| Net income | 7,728 | 10,267 | 109,386 | 31,258 | 135,958 | |||||||||||||||||||||
|
Less: Reversal of tax expense including valuation allowance on and adjustments to deferred tax assets |
— | — | (99,688 | ) | — | (99,660 | ) | |||||||||||||||||||
|
Net income before reversal of tax expense including valuation allowance on and adjustments to deferred tax assets |
7,728 | 10,267 | 9,698 | 31,258 | 36,298 | |||||||||||||||||||||
|
Less: Tax-effect at 35% for three and nine months ended September 30, 2013 |
— | — | (3,394 | ) | — | (12,704 | ) | |||||||||||||||||||
| Tax adjusted net income | 7,728 | 10,267 | 6,304 | 31,258 | 23,594 | |||||||||||||||||||||
| Return on average stockholders' equity | 3.91 | % | 5.47 | % | 77.56 | % | 5.66 | % | 33.24 | % | ||||||||||||||||
| Non-GAAP tax adjusted return on average stockholders' equity (1) | 3.91 | 5.47 | 3.79 | 5.66 | 4.87 | |||||||||||||||||||||
| Non-GAAP tax adjusted return on average tangible equity (1) | 5.77 | 8.23 | 6.12 | 8.60 | 7.97 | |||||||||||||||||||||
| (1) | Return on average stockholders' equity and average tangible equity are tax adjusted for the three and nine months ended September 30, 2013 for the release of the valuation allowance on deferred tax assets during 2013. | ||
| Non-GAAP net interest margin | ||||||||||||||||||||||||||
| (unaudited) | For the three months ended | For the nine months ended | ||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| ($ in thousands) | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Net interest income | $ | 38,276 | $ | 37,498 | $ | 30,069 | — | $ | 115,515 | $ | 98,991 | |||||||||||||||
|
Less: Accretion/amortization of
acquisition discount/premium (1) |
(3,813 | ) | (5,339 | ) | (4,195 | ) | (20,015 | ) | (24,343 | ) | ||||||||||||||||
| Non-GAAP net interest income | 34,463 | 32,159 | 25,874 | 95,500 | 74,648 | |||||||||||||||||||||
| Average interest earning assets | $ | 4,011,878 | $ | 3,720,683 | $ | 2,915,920 | $ | 3,682,318 | $ | 2,719,050 | ||||||||||||||||
|
Add: Average unamortized acquisition discounts |
48,373 | 54,563 | 76,714 | 55,948 | 88,093 | |||||||||||||||||||||
| Non-GAAP average interest-earning assets | 4,060,251 | 3,775,246 | 2,992,634 | 3,738,266 | 2,807,143 | |||||||||||||||||||||
| Net interest margin impact | 0.42 | % | 0.63 | % | 0.66 | % | 0.78 | % | 1.31 | % | ||||||||||||||||
| (1) |
Accretion income on acquired loans only includes interest income recognized in excess of what would be accrued under the contractual terms as a result of acquisition accounting and loan exits through full payoff or charge-off, foreclosure or sale. |
||
| Non-GAAP tangible book value per as converted common share | |||||||||||||||
| (unaudited) | As of | ||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||
| ($ in thousands, except share amounts) | 2014 | 2014 | 2013 | ||||||||||||
| Tangible equity: | |||||||||||||||
| Total stockholders' equity | $ | 784,585 | $ | 775,446 | $ | 662,336 | |||||||||
| Less: | |||||||||||||||
| Goodwill | 238,528 | 238,528 | 238,528 | ||||||||||||
| Core deposit intangibles | 13,235 | 13,862 | 15,743 | ||||||||||||
| Tangible equity | 532,822 | 523,056 | 408,065 | ||||||||||||
| Shares of common stock outstanding | 28,100,932 | 28,100,467 | 23,125,368 | ||||||||||||
|
Shares of common stock to be issued upon conversion of preferred stock |
3,620,550 | 3,620,550 | 5,628,600 | ||||||||||||
|
Total as converted shares of common stock outstanding (1) |
31,721,482 | 31,721,017 | 28,753,968 | ||||||||||||
| Book value per as converted common share | 24.73 | 24.45 | 23.03 | ||||||||||||
| Tangible book value per as converted common share | 16.80 | 16.49 | 14.19 | ||||||||||||
| (1) | Common stock outstanding includes additional shares of common stock that would be issued upon conversion of all outstanding shares of preferred stock to common stock and excludes shares issuable upon exercise of warrants and options. |
