For the year ended
The 2020 financial results were adversely impacted by an elevated provision for credit losses of
Q4 2020 Highlights
- Loans on payment deferral at
December 31, 2020 totaled$9.7 million , or 0.2% of total loans. - Balance sheet restructure in October involving the payoff of
$99.9 million in FHLB borrowings, resulted in a prepayment fee of$3.8 million , partially offset by gain on securities sales of$871,000 . - Net interest margin increased 12 basis points to 3.08% compared to the linked quarter.
- The Company adopted CECL at
December 31, 2020 , and recorded a Q4 provision for credit losses of$789,000 compared to$8 million in Q3 2020. - Loan and deposit portfolios continued their steady growth, each increasing 3% compared to the linked quarter.
Full Year 2020 Highlights
- Total asset growth of 14% to
$7.66 billion atDecember 31, 2020 . - Strong organic loan growth of 12% or
$605.6 million , which excludes PPP loans. - Deposit generation of 22% or
$1.16 billion , including 34% growth in noninterest-bearing deposits. - Net loan charge-offs for the year totaled
$1.5 million , or 0.03% of average loans.
COVID-19
As part of Lakeland’s response to COVID-19, we initiated remote working plans and encouraged the use of our mobile and online banking alternatives. To assist COVID-19 impacted borrowers, we offered temporary payment deferrals on commercial, mortgage and consumer loans. At
Net Interest Margin and Net Interest Income
Net interest margin for the fourth quarter of 2020 of 3.08% increased 12 basis points from the linked quarter and decreased 19 basis points compared to the fourth quarter of 2019. The increase in net interest margin compared to the third quarter was due in part to the impact of the reduction of FHLB borrowings as a result of the balance sheet restructure in the fourth quarter of 2020 as well as an increase in prepayment fees, a decrease in cash balances and a decrease in the cost of interest-bearing liabilities. The decrease compared to the fourth quarter of 2019 was primarily a result of the current low interest rate environment resulting in lower yields on interest-earning assets as well as higher cash levels. Net interest margin for 2020 was 3.09% compared to 3.33% for the same period in 2019.
The yield on interest-earning assets for the fourth quarter of 2020 was 3.51% compared to 3.49% for the linked quarter and 4.21% for the fourth quarter of 2019. The yield on interest-earning assets for 2020 was 3.70% compared to 4.36% for 2019. The decrease in yield on interest-earning assets, when compared to 2019 periods, was due primarily to a reduction in the yield on loans due to decreases in the prime rate and LIBOR during 2019 and 2020, increased balance of lower-yielding federal funds sold, as well as the origination of lower-yielding PPP loans during 2020.
The cost of interest-bearing liabilities decreased in the fourth quarter of 2020 to 0.59% compared to 0.72% for the linked quarter and 1.26% for the fourth quarter of 2019. The cost of interest-bearing liabilities for 2020 was 0.83% compared to 1.35% during the same period in 2019. The cost of interest-bearing transaction accounts, time deposits and borrowings continue to decrease since 2019 largely driven by reductions in market interest rates.
Net interest income increased to
Noninterest Income
Noninterest income decreased
For 2020, noninterest income totaled
Noninterest Expense
Noninterest expense totaled
For 2020, noninterest expense totaled
Income Tax Expense
The effective tax rate for the fourth quarter of 2020 was 22.3% compared to 24.9% for the fourth quarter of 2019. The effective tax rate for 2020 was 23.1% compared to 24.8% for 2019.
Financial Condition
At
Asset Quality
At
Capital
At
Forward-Looking Statements
The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates”, “projects”, “intends”, “estimates”, “expects”, “believes”, “plans”, “may”, “will”, “should”, “could”, and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. The following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in the financial services industry and the
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in
The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.
The Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.
These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying non-GAAP tables.
About Lakeland
Thomas J. Shara | |
President & CEO | EVP & CFO |
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||
INCOME STATEMENT | |||||||||||||||
Net interest income | $ | 55,135 | $ | 49,548 | $ | 207,687 | $ | 196,034 | |||||||
Provision for credit losses | (789 | ) | (1,086 | ) | (27,222 | ) | (2,130 | ) | |||||||
Gain on sales of investment securities | 871 | — | 1,213 | — | |||||||||||
Gain on sales of loans | 760 | 375 | 3,322 | 1,660 | |||||||||||
Gain (loss) on equity securities | 73 | (29 | ) | (552 | ) | 496 | |||||||||
Other noninterest income | 5,141 | 7,638 | 23,127 | 24,640 | |||||||||||
Long-term debt prepayment fee | (3,777 | ) | — | (4,133 | ) | — | |||||||||
Merger-related expenses | — | — | — | (3,178 | ) | ||||||||||
Other noninterest expense | (33,168 | ) | (31,523 | ) | (128,665 | ) | (123,578 | ) | |||||||
Pretax income | 24,246 | 24,923 | 74,777 | 93,944 | |||||||||||
Provision for income taxes | (5,398 | ) | (6,208 | ) | (17,259 | ) | (23,272 | ) | |||||||
Net income | $ | 18,848 | $ | 18,715 | $ | 57,518 | $ | 70,672 | |||||||
Basic earnings per common share | $ | 0.37 | $ | 0.37 | $ | 1.13 | $ | 1.39 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.37 | $ | 1.13 | $ | 1.38 | |||||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.500 | $ | 0.490 | |||||||
Weighted average shares - basic | 50,527 | 50,566 | 50,540 | 50,477 | |||||||||||
Weighted average shares - diluted | 50,672 | 50,748 | 50,650 | 50,642 | |||||||||||
SELECTED OPERATING RATIOS | |||||||||||||||
Annualized return on average assets | 0.98 | % | 1.15 | % | 0.80 | % | 1.12 | % | |||||||
Annualized return on average common equity | 9.96 | % | 10.32 | % | 7.74 | % | 10.14 | % | |||||||
Annualized return on average tangible common equity (1) | 12.64 | % | 13.29 | % | 9.86 | % | 13.16 | % | |||||||
Annualized yield on interest-earning assets | 3.51 | % | 4.21 | % | 3.70 | % | 4.36 | % | |||||||
Annualized cost of interest-bearing liabilities | 0.59 | % | 1.26 | % | 0.83 | % | 1.35 | % | |||||||
Annualized net interest spread | 2.92 | % | 2.96 | % | 2.87 | % | 3.00 | % | |||||||
Annualized net interest margin | 3.08 | % | 3.27 | % | 3.09 | % | 3.33 | % | |||||||
Efficiency ratio (1) | 53.74 | % | 54.20 | % | 54.54 | % | 54.83 | % | |||||||
Stockholders' equity to total assets | 9.97 | % | 10.81 | % | |||||||||||
Book value per common share | $ | 15.13 | $ | 14.36 | |||||||||||
Tangible book value per common share (1) | $ | 11.97 | $ | 11.18 | |||||||||||
Tangible common equity to tangible assets (1) | 8.05 | % | 8.62 | % | |||||||||||
ASSET QUALITY RATIOS | 2020 | 2019 | |||||||||||||
Ratio of allowance for credit losses on loans to total loans | 1.18 | % | 0.78 | % | |||||||||||
Non-performing loans to total loans | 0.60 | % | 0.41 | % | |||||||||||
Non-performing assets to total assets | 0.47 | % | 0.32 | % | |||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.03 | % | — | % | |||||||||||
(1) See Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | |||||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||
Loans | $ | 6,021,232 | $ | 5,137,823 | |||||||||||
Allowance for credit losses on loans | 71,124 | 40,003 | |||||||||||||
Investment securities | 973,185 | 918,853 | |||||||||||||
Total assets | 7,664,297 | 6,711,236 | |||||||||||||
Total deposits | 6,455,783 | 5,293,779 | |||||||||||||
Short-term borrowings | 169,560 | 328,658 | |||||||||||||
Other borrowings | 143,257 | 284,036 | |||||||||||||
Stockholders' equity | 763,784 | 725,263 | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||
Loans | $ | 5,939,904 | $ | 5,025,377 | $ | 5,626,273 | $ | 4,938,298 | |||||||
Investment securities | 912,723 | 894,698 | 889,223 | 869,374 | |||||||||||
Interest-earning assets | 7,137,884 | 6,022,525 | 6,735,825 | 5,895,669 | |||||||||||
Total assets | 7,625,458 | 6,470,082 | 7,208,366 | 6,322,654 | |||||||||||
Noninterest-bearing demand deposits | 1,499,093 | 1,130,192 | 1,362,918 | 1,092,827 | |||||||||||
Savings deposits | 571,794 | 492,903 | 535,754 | 500,650 | |||||||||||
Interest-bearing transaction accounts | 3,313,556 | 2,814,831 | 3,035,626 | 2,653,404 | |||||||||||
Time deposits | 1,112,053 | 873,924 | 1,064,187 | 922,412 | |||||||||||
Total deposits | 6,496,496 | 5,311,850 | 5,998,485 | 5,169,293 | |||||||||||
Short-term borrowings | 68,962 | 67,097 | 92,425 | 95,035 | |||||||||||
Other borrowings | 155,943 | 284,049 | 244,000 | 290,330 | |||||||||||
Total interest-bearing liabilities | 5,222,308 | 4,532,804 | 4,971,992 | 4,461,831 | |||||||||||
Stockholders' equity | 753,059 | 719,292 | 743,225 | 697,037 | |||||||||||
Consolidated Statements of Income | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
INTEREST INCOME | ||||||||||||||||
Loans and fees | $ | 58,553 | $ | 58,211 | $ | 229,036 | $ | 233,535 | ||||||||
Federal funds sold and interest-bearing deposits with banks | 61 | 423 | 348 | 1,720 | ||||||||||||
Taxable investment securities and other | 3,680 | 4,857 | 17,811 | 19,722 | ||||||||||||
Tax exempt investment securities | 565 | 345 | 1,647 | 1,510 | ||||||||||||
TOTAL INTEREST INCOME | 62,859 | 63,836 | 248,842 | 256,487 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 6,090 | 11,722 | 32,059 | 49,248 | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 25 | 138 | 556 | 1,471 | ||||||||||||
Other borrowings | 1,609 | 2,428 | 8,540 | 9,734 | ||||||||||||
TOTAL INTEREST EXPENSE | 7,724 | 14,288 | 41,155 | 60,453 | ||||||||||||
NET INTEREST INCOME | 55,135 | 49,548 | 207,687 | 196,034 | ||||||||||||
Provision for credit losses | 789 | 1,086 | 27,222 | 2,130 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 54,346 | 48,462 | 180,465 | 193,904 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges on deposit accounts | 2,485 | 3,026 | 9,148 | 11,205 | ||||||||||||
Commissions and fees | 1,365 | 1,548 | 5,868 | 6,230 | ||||||||||||
Income on bank owned life insurance | 657 | 676 | 2,657 | 2,740 | ||||||||||||
Gain (loss) on equity securities | 73 | (29 | ) | (552 | ) | 496 | ||||||||||
Gain on sales of loans | 760 | 375 | 3,322 | 1,660 | ||||||||||||
Gain on sales and calls of investment securities,net | 871 | — | 1,213 | — | ||||||||||||
Swap income | 485 | 1,646 | 4,719 | 3,231 | ||||||||||||
Other income | 149 | 742 | 735 | 1,234 | ||||||||||||
TOTAL NONINTEREST INCOME | 6,845 | 7,984 | 27,110 | 26,796 | ||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries and employee benefit expense | 20,201 | 19,615 | 80,399 | 77,287 | ||||||||||||
Net occupancy expense | 2,580 | 2,679 | 10,596 | 11,029 | ||||||||||||
Furniture and equipment expense | 3,042 | 2,316 | 11,275 | 8,681 | ||||||||||||
750 | — | 2,123 | 431 | |||||||||||||
Stationary, supplies and postage expense | 409 | 385 | 1,677 | 1,599 | ||||||||||||
Marketing expense | 413 | 515 | 1,253 | 1,945 | ||||||||||||
Data processing expense | 1,064 | 1,113 | 4,964 | 4,913 | ||||||||||||
Telecommunications expense | 476 | 492 | 1,875 | 1,943 | ||||||||||||
ATM and debit card expense | 593 | 604 | 2,331 | 2,377 | ||||||||||||
Core deposit intangible amortization | 249 | 289 | 1,025 | 1,182 | ||||||||||||
Other real estate owned and other repossessed assets expense | — | 33 | 53 | 256 | ||||||||||||
Long-term debt prepayment fee | 3,777 | — | 4,133 | — | ||||||||||||
Merger-related expenses | — | — | — | 3,178 | ||||||||||||
Other expenses | 3,391 | 3,482 | 11,094 | 11,935 | ||||||||||||
TOTAL NONINTEREST EXPENSE | 36,945 | 31,523 | 132,798 | 126,756 | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 24,246 | 24,923 | 74,777 | 93,944 | ||||||||||||
Provision for income taxes | 5,398 | 6,208 | 17,259 | 23,272 | ||||||||||||
NET INCOME | $ | 18,848 | $ | 18,715 | $ | 57,518 | $ | 70,672 | ||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||
Basic | $ | 0.37 | $ | 0.37 | $ | 1.13 | $ | 1.39 | ||||||||
Diluted | $ | 0.37 | $ | 0.37 | $ | 1.13 | $ | 1.38 | ||||||||
DIVIDENDS PAID PER COMMON SHARE | $ | 0.125 | $ | 0.125 | $ | 0.500 | $ | 0.490 |
Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash | $ | 262,327 | $ | 275,794 | ||||
Interest-bearing deposits due from banks | 7,763 | 6,577 | ||||||
Total cash and cash equivalents | 270,090 | 282,371 | ||||||
Investment securities available for sale, at estimated fair value (allowance for credit losses of at | 855,746 | 755,900 | ||||||
Investment securities, held to maturity (estimated fair value of | 90,766 | 123,975 | ||||||
Equity securities, at fair value | 14,694 | 16,473 | ||||||
11,979 | 22,505 | |||||||
Loans held for sale | 1,335 | 1,743 | ||||||
Loans, net of deferred fees | 6,021,232 | 5,137,823 | ||||||
Less: Allowance for credit losses | 71,124 | 40,003 | ||||||
Net loans | 5,950,108 | 5,097,820 | ||||||
Premises and equipment, net | 48,495 | 47,608 | ||||||
Operating lease right-of-use assets | 16,772 | 18,282 | ||||||
Accrued interest receivable | 19,339 | 16,832 | ||||||
156,277 | 156,277 | |||||||
Other identifiable intangible assets | 3,288 | 4,314 | ||||||
Bank owned life insurance | 115,115 | 112,392 | ||||||
Other assets | 110,293 | 54,744 | ||||||
TOTAL ASSETS | $ | 7,664,297 | $ | 6,711,236 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,510,224 | $ | 1,124,121 | ||||
Savings and interest-bearing transaction accounts | 3,867,303 | 3,298,854 | ||||||
Time deposits | 895,056 | 652,144 | ||||||
Time deposits over | 183,200 | 218,660 | ||||||
Total deposits | 6,455,783 | 5,293,779 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 169,560 | 328,658 | ||||||
Other borrowings | 25,000 | 165,816 | ||||||
Subordinated debentures | 118,257 | 118,220 | ||||||
Operating lease liabilities | 18,183 | 19,814 | ||||||
Other liabilities | 113,730 | 59,686 | ||||||
TOTAL LIABILITIES | 6,900,513 | 5,985,973 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, no par value; authorized 100,000,000 shares; issued 50,610,681 shares and outstanding 50,479,646 shares at | 562,421 | 560,263 | ||||||
(1,452 | ) | — | ||||||
Retained earnings | 191,418 | 162,752 | ||||||
Accumulated other comprehensive income (loss) | 11,397 | 2,248 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 763,784 | 725,263 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,664,297 | $ | 6,711,236 |
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||
INCOME STATEMENT | |||||||||||||||
Net interest income | $ | 55,135 | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | |||||
Provision for credit losses (1) | (789 | ) | (8,000 | ) | (9,000 | ) | (9,223 | ) | (1,086 | ) | |||||
Gain on sales of investment securities | 871 | — | — | 342 | — | ||||||||||
Gain on sales of loans | 760 | 1,437 | 710 | 415 | 375 | ||||||||||
Gain (loss) on equity securities | 73 | (170 | ) | 198 | (653 | ) | (29 | ) | |||||||
Other noninterest income | 5,141 | 5,506 | 4,573 | 7,907 | 7,638 | ||||||||||
Long-term debt prepayment fee | (3,777 | ) | — | — | (356 | ) | — | ||||||||
Other noninterest expense | (33,168 | ) | (32,097 | ) | (31,462 | ) | (32,148 | ) | (31,523 | ) | |||||
Pretax income | 24,246 | 18,810 | 15,538 | 16,183 | 24,923 | ||||||||||
Provision for income taxes | (5,398 | ) | (4,383 | ) | (3,687 | ) | (3,791 | ) | (6,208 | ) | |||||
Net income | $ | 18,848 | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | |||||
Basic earnings per common share | $ | 0.37 | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | |||||
Diluted earnings per common share | $ | 0.37 | $ | 0.28 | $ | 0.23 | $ | 0.24 | $ | 0.37 | |||||
Dividends paid per common share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | |||||
Dividends paid | $ | 6,364 | $ | 6,365 | $ | 6,365 | $ | 6,364 | $ | 6,363 | |||||
Weighted average shares - basic | 50,527 | 50,526 | 50,522 | 50,586 | 50,566 | ||||||||||
Weighted average shares - diluted | 50,672 | 50,620 | 50,593 | 50,728 | 50,748 | ||||||||||
SELECTED OPERATING RATIOS | |||||||||||||||
Annualized return on average assets | 0.98 | % | 0.76 | % | 0.67 | % | 0.76 | % | 1.15 | % | |||||
Annualized return on average common equity | 9.96 | % | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | |||||
Annualized return on average tangible common equity (2) | 12.64 | % | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | |||||
Annualized net interest margin | 3.08 | % | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | |||||
Efficiency ratio (2) | 53.40 | % | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % | |||||
Common stockholders' equity to total assets | 9.97 | % | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | |||||
Tangible common equity to tangible assets (2) | 8.05 | % | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | |||||
Tier 1 risk-based ratio | 10.22 | % | 10.34 | % | 10.45 | % | 10.61 | % | 11.02 | % | |||||
Total risk-based ratio | 12.85 | % | 12.93 | % | 12.98 | % | 13.04 | % | 13.40 | % | |||||
Tier 1 leverage ratio | 8.37 | % | 8.36 | % | 8.69 | % | 9.38 | % | 9.41 | % | |||||
Common equity tier 1 capital ratio | 9.73 | % | 9.83 | % | 9.93 | % | 10.08 | % | 10.46 | % | |||||
Book value per common share | $ | 15.13 | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | |||||
Tangible book value per common share (2) | $ | 11.97 | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 |
(1) The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL") on
(2) See Supplemental Information - Non-GAAP Financial Measures
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||
SELECTED BALANCE SHEET DATA AT PERIOD-END | |||||||||||||||
Loans | $ | 6,031,220 | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | |||||
Allowance for credit losses on loans (3) | 71,124 | 65,242 | 57,839 | 48,884 | 40,003 | ||||||||||
Investment securities | 973,185 | 909,535 | 957,985 | 974,319 | 918,853 | ||||||||||
Total assets | 7,664,297 | 7,522,184 | 7,488,516 | 7,013,908 | 6,711,236 | ||||||||||
Total deposits | 6,455,783 | 6,266,516 | 6,125,502 | 5,455,138 | 5,293,779 | ||||||||||
Short-term borrowings | 169,560 | 97,874 | 183,116 | 419,085 | 328,658 | ||||||||||
Other borrowings | 143,257 | 253,359 | 273,954 | 258,944 | 284,036 | ||||||||||
Stockholders' equity | 763,784 | 753,572 | 745,489 | 736,922 | 725,263 | ||||||||||
LOANS | |||||||||||||||
Commercial, secured by real estate | $ | 4,514,649 | $ | 4,326,074 | $ | 4,260,917 | $ | 4,073,911 | $ | 3,924,762 | |||||
Commercial, industrial and other | 439,503 | 426,821 | 402,239 | 467,346 | 431,934 | ||||||||||
Paycheck Protection Program | 284,636 | 325,115 | 325,999 | — | — | ||||||||||
Equipment financing | 114,737 | 116,410 | 115,651 | 116,421 | 111,076 | ||||||||||
Residential mortgages | 376,416 | 342,583 | 334,455 | 334,114 | 335,191 | ||||||||||
Consumer and home equity | 301,279 | 318,021 | 329,866 | 340,071 | 337,977 | ||||||||||
Total loans | $ | 6,031,220 | $ | 5,855,024 | $ | 5,769,127 | $ | 5,331,863 | $ | 5,140,940 | |||||
DEPOSITS | |||||||||||||||
Noninterest-bearing | $ | 1,510,224 | $ | 1,474,847 | $ | 1,486,273 | $ | 1,129,695 | $ | 1,124,121 | |||||
Savings and interest-bearing transaction accounts | 3,867,303 | 3,647,328 | 3,510,723 | 3,241,397 | 3,298,854 | ||||||||||
Time deposits | 1,078,256 | 1,144,341 | 1,128,506 | 1,084,046 | 870,804 | ||||||||||
Total deposits | $ | 6,455,783 | $ | 6,266,516 | $ | 6,125,502 | $ | 5,455,138 | $ | 5,293,779 | |||||
Total loans to total deposits ratio | 93.4 | % | 93.4 | % | 94.2 | % | 97.7 | % | 97.1 | % | |||||
SELECTED AVERAGE BALANCE SHEET DATA | |||||||||||||||
Loans | $ | 5,939,904 | $ | 5,775,093 | $ | 5,572,865 | $ | 5,208,097 | $ | 5,025,377 | |||||
Investment securities | 912,723 | 873,066 | 891,037 | 879,987 | 894,698 | ||||||||||
Interest-earning assets | 7,137,884 | 7,009,939 | 6,650,993 | 6,133,003 | 6,022,525 | ||||||||||
Total assets | 7,625,458 | 7,516,069 | 7,137,529 | 6,565,302 | 6,470,082 | ||||||||||
Noninterest-bearing demand deposits | 1,499,093 | 1,475,422 | 1,364,785 | 1,109,638 | 1,130,192 | ||||||||||
Savings deposits | 571,794 | 548,662 | 525,224 | 496,798 | 492,903 | ||||||||||
Interest-bearing transaction accounts | 3,313,556 | 3,086,260 | 2,908,299 | 2,830,778 | 2,814,831 | ||||||||||
Time deposits | 1,112,053 | 1,176,181 | 1,093,760 | 872,998 | 873,924 | ||||||||||
Total deposits | 6,496,496 | 6,286,525 | 5,892,068 | 5,310,212 | 5,311,850 | ||||||||||
Short-term borrowings | 68,962 | 58,845 | 82,694 | 159,825 | 67,097 | ||||||||||
Other borrowings | 155,943 | 269,093 | 273,904 | 277,753 | 284,049 | ||||||||||
Total interest-bearing liabilities | 5,222,308 | 5,139,042 | 4,883,881 | 4,638,152 | 4,532,804 | ||||||||||
Stockholders' equity | 753,059 | 751,099 | 742,050 | 736,719 | 719,292 |
(3) The Company adopted CECL on
Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
(Dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||
AVERAGE ANNUALIZED YIELDS (TAXABLE EQUIVALENT BASIS) | |||||||||||||||
ASSETS | |||||||||||||||
Loans | 3.92 | % | 3.91 | % | 4.03 | % | 4.47 | % | 4.60 | % | |||||
Taxable investment securities and other | 1.84 | % | 2.09 | % | 2.31 | % | 2.56 | % | 2.34 | % | |||||
Tax-exempt securities | 2.51 | % | 2.55 | % | 2.70 | % | 2.67 | % | 2.69 | % | |||||
Federal funds sold and interest-bearing cash accounts | 0.09 | % | 0.10 | % | 0.08 | % | 1.42 | % | 1.65 | % | |||||
Total interest-earning assets | 3.51 | % | 3.49 | % | 3.69 | % | 4.17 | % | 4.21 | % | |||||
LIABILITIES | |||||||||||||||
Savings accounts | 0.05 | % | 0.06 | % | 0.07 | % | 0.07 | % | 0.07 | % | |||||
Interest-bearing transaction accounts | 0.38 | % | 0.44 | % | 0.55 | % | 0.97 | % | 1.05 | % | |||||
Time deposits | 1.01 | % | 1.19 | % | 1.48 | % | 1.81 | % | 1.93 | % | |||||
Borrowings | 2.84 | % | 2.73 | % | 2.62 | % | 2.54 | % | 2.86 | % | |||||
Total interest-bearing liabilities | 0.59 | % | 0.72 | % | 0.86 | % | 1.18 | % | 1.26 | % | |||||
Net interest spread (taxable equivalent basis) | 2.92 | % | 2.77 | % | 2.83 | % | 2.99 | % | 2.96 | % | |||||
Annualized net interest margin (taxable equivalent basis) | 3.08 | % | 2.96 | % | 3.06 | % | 3.28 | % | 3.27 | % | |||||
Annualized cost of deposits | 0.37 | % | 0.44 | % | 0.55 | % | 0.82 | % | 0.88 | % | |||||
ASSET QUALITY DATA | |||||||||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS | |||||||||||||||
Balance at beginning of period | $ | 65,242 | $ | 57,839 | $ | 48,884 | $ | 40,003 | $ | 38,655 | |||||
Provision for credit losses on loans | (246 | ) | 8,000 | 9,000 | 9,223 | 1,086 | |||||||||
Charge-offs | (746 | ) | (682 | ) | (142 | ) | (483 | ) | (198 | ) | |||||
Recoveries | 218 | 85 | 97 | 141 | 460 | ||||||||||
Balance at end of period | $ | 64,468 | $ | 65,242 | $ | 57,839 | $ | 48,884 | $ | 40,003 | |||||
Impact of adopting CECL (4) | 6,656 | ||||||||||||||
$ | 71,124 | ||||||||||||||
NET LOAN CHARGE-OFFS (RECOVERIES) | |||||||||||||||
Commercial, secured by real estate | $ | (47 | ) | $ | 298 | $ | (36 | ) | $ | 111 | $ | (18 | ) | ||
Commercial, industrial and other | 478 | 173 | (13 | ) | (31 | ) | 13 | ||||||||
Equipment financing | 64 | 95 | (11 | ) | 71 | (297 | ) | ||||||||
Residential mortgages | — | (1 | ) | — | 96 | — | |||||||||
Consumer and home equity | 33 | 32 | 105 | 95 | 40 | ||||||||||
Net charge-offs (recoveries) | $ | 528 | $ | 597 | $ | 45 | $ | 342 | $ | (262 | ) | ||||
NON-PERFORMING ASSETS | |||||||||||||||
Commercial, secured by real estate | $ | 30,085 | $ | 26,145 | $ | 25,615 | $ | 24,770 | $ | 13,281 | |||||
Commercial, industrial and other | 1,286 | 1,484 | 1,546 | 1,909 | 1,539 | ||||||||||
Equipment financing | 320 | 444 | 400 | 199 | 284 | ||||||||||
Residential mortgages | 2,190 | 2,695 | 2,860 | 2,837 | 3,428 | ||||||||||
Consumer and home equity | 2,241 | 2,322 | 2,432 | 2,689 | 2,606 | ||||||||||
Total non-accrual loans | 36,122 | 33,090 | 32,853 | 32,404 | 21,138 | ||||||||||
Property acquired through foreclosure or repossession | — | — | 354 | 393 | 563 | ||||||||||
Total non-performing assets | $ | 36,122 | $ | 33,090 | $ | 33,207 | $ | 32,797 | $ | 21,701 | |||||
Loans past due 90 days or more and still accruing | $ | 1 | $ | 165 | $ | 58 | $ | 99 | $ | — | |||||
Loans restructured and still accruing | $ | 3,856 | $ | 4,299 | $ | 4,667 | $ | 4,719 | $ | 5,650 | |||||
Ratio of allowance for credit losses to total loans (2) | 1.18 | % | 1.11 | % | 1.00 | % | 0.92 | % | 0.78 | % | |||||
Total non-accrual loans to total loans | 0.60 | % | 0.57 | % | 0.57 | % | 0.61 | % | 0.41 | % | |||||
Total non-performing assets to total assets | 0.47 | % | 0.44 | % | 0.44 | % | 0.47 | % | 0.32 | % | |||||
Annualized net charge-offs (recoveries) to average loans | 0.04 | % | 0.04 | % | — | % | 0.03 | % | (0.02 | )% |
(4) The Company adopted CECL on
Supplemental Information - Non-GAAP Financial Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
At or for the Quarter Ended | |||||||||||||||
(Dollars in thousands, except ratios and per share amounts) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE | |||||||||||||||
Total common stockholders' equity at end of period - GAAP | $ | 763,784 | $ | 753,572 | $ | 745,489 | $ | 736,922 | $ | 725,263 | |||||
Less: | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | ||||||||||
Less: Other identifiable intangible assets | 3,288 | 3,538 | 3,788 | 4,049 | 4,314 | ||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 604,219 | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | |||||
Shares outstanding at end of period | 50,480 | 50,468 | 50,463 | 50,462 | 50,498 | ||||||||||
Book value per share - GAAP | $ | 15.13 | $ | 14.93 | $ | 14.77 | $ | 14.60 | $ | 14.36 | |||||
Tangible book value per share - Non-GAAP | $ | 11.97 | $ | 11.77 | $ | 11.60 | $ | 11.43 | $ | 11.18 | |||||
CALCULATION OF TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | |||||||||||||||
Total tangible common stockholders' equity at end of period - Non-GAAP | $ | 604,219 | $ | 593,757 | $ | 585,424 | $ | 576,596 | $ | 564,672 | |||||
Total assets at end of period - GAAP | $ | 7,664,297 | $ | 7,522,184 | $ | 7,488,516 | $ | 7,013,908 | $ | 6,711,236 | |||||
Less: | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | ||||||||||
Less: Other identifiable intangible assets | 3,288 | 3,538 | 3,788 | 4,049 | 4,314 | ||||||||||
Total tangible assets at end of period - Non-GAAP | $ | 7,504,732 | $ | 7,362,369 | $ | 7,328,451 | $ | 6,853,582 | $ | 6,550,645 | |||||
Common equity to assets - GAAP | 9.97 | % | 10.02 | % | 9.96 | % | 10.51 | % | 10.81 | % | |||||
Tangible common equity to tangible assets - Non-GAAP | 8.05 | % | 8.06 | % | 7.99 | % | 8.41 | % | 8.62 | % | |||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | |||||||||||||||
Net income - GAAP | $ | 18,848 | $ | 14,427 | $ | 11,851 | $ | 12,392 | $ | 18,715 | |||||
Total average common stockholders' equity - GAAP | $ | 753,059 | $ | 751,099 | $ | 742,050 | $ | 736,719 | $ | 719,292 | |||||
Less: Average goodwill | 156,277 | 156,277 | 156,277 | 156,277 | 156,277 | ||||||||||
Less: Average other identifiable intangible assets | 3,433 | 3,689 | 3,942 | 4,205 | 4,468 | ||||||||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 593,349 | $ | 591,133 | $ | 581,831 | $ | 576,237 | $ | 558,547 | |||||
Return on average common stockholders' equity - GAAP | 9.96 | % | 7.64 | % | 6.42 | % | 6.77 | % | 10.32 | % | |||||
Return on average tangible common stockholders' equity - Non-GAAP | 12.64 | % | 9.71 | % | 8.19 | % | 8.65 | % | 13.29 | % | |||||
CALCULATION OF EFFICIENCY RATIO | |||||||||||||||
Total noninterest expense | $ | 36,945 | $ | 32,097 | $ | 31,462 | $ | 32,504 | $ | 31,523 | |||||
Amortization of core deposit intangibles | (249 | ) | (250 | ) | (261 | ) | (265 | ) | (289 | ) | |||||
Merger-related expenses | — | — | — | — | — | ||||||||||
Long-term debt prepayment fee | (3,777 | ) | — | — | (356 | ) | |||||||||
Noninterest expense, as adjusted | $ | 32,919 | $ | 31,847 | $ | 31,201 | $ | 31,883 | $ | 31,234 | |||||
Net interest income | $ | 55,135 | $ | 52,134 | $ | 50,519 | $ | 49,899 | $ | 49,548 | |||||
Total noninterest income | 6,845 | 6,773 | 5,481 | 8,011 | 7,984 | ||||||||||
Total revenue | 61,980 | 58,907 | 56,000 | 57,910 | 57,532 | ||||||||||
Tax-equivalent adjustment on municipal securities | 149 | 108 | 93 | 88 | 91 | ||||||||||
Gain on sales of investment securities | (871 | ) | — | — | (342 | ) | — | ||||||||
Total revenue, as adjusted | $ | 61,258 | $ | 59,015 | $ | 56,093 | $ | 57,656 | $ | 57,623 | |||||
Efficiency ratio - Non-GAAP | 53.74 | % | 53.96 | % | 55.62 | % | 55.30 | % | 54.20 | % |
Supplemental Information - Non-GAAP Financial Measures | ||||||
(Unaudited) | ||||||
For the Twelve Months Ended | ||||||
(Dollars in thousands) | 2020 | 2019 | ||||
CALCULATION OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||
Net income - GAAP | $ | 57,518 | $ | 70,672 | ||
Total average common stockholders' equity - GAAP | $ | 743,225 | $ | 697,037 | ||
Less: Average goodwill | 156,277 | 154,971 | ||||
Less: Average other identifiable intangible assets | 3,816 | 4,883 | ||||
Total average tangible common stockholders' equity - Non-GAAP | $ | 583,132 | $ | 537,183 | ||
Return on average common stockholders' equity - GAAP | 7.74 | % | 10.14 | % | ||
Return on average tangible common stockholders' equity - Non-GAAP | 9.86 | % | 13.16 | % | ||
CALCULATION OF EFFICIENCY RATIO | ||||||
Total noninterest expense | $ | 132,798 | $ | 126,756 | ||
Amortization of core deposit intangibles | (1,025 | ) | (1,182 | ) | ||
Long-term debt prepayment fee | (4,133 | ) | — | |||
Merger-related expenses | — | (3,178 | ) | |||
Noninterest expense, as adjusted | $ | 127,640 | $ | 122,396 | ||
Net interest income | $ | 207,687 | $ | 196,034 | ||
Noninterest income | $ | 27,110 | $ | 26,796 | ||
Total revenue | $ | 234,797 | $ | 222,830 | ||
Tax-equivalent adjustment on municipal securities | $ | 438 | $ | 401 | ||
Gain on sales of investment securities | (1,213 | ) | — | |||
Total revenue, as adjusted | $ | 234,022 | $ | 223,231 | ||
Efficiency ratio - Non-GAAP | 54.54 | % | 54.83 | % |
Source:
2021 GlobeNewswire, Inc., source