"
Highlights for First Quarter 2024:
- Total revenues were
$167 .10 million, a decrease of$17 .04 million, or 9.25%, compared to first quarter 2023. Net interest income declined$20 .16 million, driven by higher rates on deposits and the continuation a migration from noninterest-bearing to interest-bearing deposits. The decrease was partially offset by an increase in noninterest income of$3 .12 million. - Total deposits were
$14 .13 billion, an increase of$527 .94 million, or 3.88%, compared to first quarter 2023. Total deposits increased 1.68%, or$232 .87 million, in comparison toDecember 31, 2023 , 6.74% on an annualized basis. - Noninterest-bearing deposits decreased 17.27%, to
$4 .19 billion, compared to first quarter 2023 and represented 29.69% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 3.42%. - Loans held for investment were
$11 .45 billion, an increase of$278 .56 million, or 2.49%, compared toMarch 31, 2023 , and$123 .32 million, or 1.09%, compared toDecember 31, 2023 , 4.38% on an annualized basis. - Annualized return on common shareholders' equity was 6.89% compared to 8.05% in first quarter 2023. Annualized return on average tangible common shareholders' equity (non-GAAP) was 9.98% compared to 11.83% in first quarter 2023.
- Net interest margin was 2.72% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.75%, including purchase accounting accretion of 4 basis points, compared to the prior year quarter net interest margin of 3.36% and tax-equivalent net interest margin (non-GAAP) of 3.39%, including purchase accounting accretion of 3 basis points.
- The effective tax rate was 17.31% in the quarter compared to 20.03% in first quarter 2023 and 8.46% in the linked quarter. The lower tax rate in the linked quarter was due to a decline in state tax expense in fourth quarter 2023, increases in tax-advantaged income investments, and deferred taxes related to the sale of Berkshire Hathaway HomeServices ("BHHS")
Towne Realty .
"We reported strong asset quality metrics for the quarter and continued to focus on our strategy to align loan and deposit growth, which is reflective of our conservative approach to
Quarterly Net Interest Income:
- Net interest income was
$103 .22 million compared to$123 .38 million for the quarter endedMarch 31, 2023 . The decrease was driven by interest-bearing deposit growth, coupled with increased deposit costs, outpacing higher earning asset yields. - On an average basis, loans held for investment, with a yield of 5.37%, represented 74.54% of earning assets at
March 31, 2024 compared to a yield of 4.88% and 74.61% of earning assets in the first quarter of 2023. - The cost of interest-bearing deposits was 3.24% for the quarter ended
March 31, 2024 , compared to 1.66% in 2023. Interest expense on deposits increased$44 .45 million, or 131.00%, over the prior year quarter driven by the increase in rate. - Our total cost of deposits increased to 2.26% from 1.02% for the quarter ended
March 31, 2023 due to a combination of higher interest-bearing deposit costs and the decline in noninterest-bearing deposits. - Average interest-earning assets totaled
$15 .27 billion atMarch 31, 2024 compared to$14 .87 billion atMarch 31, 2023 , an increase of 2.64%. The Company anticipates$550 million of cash flows from its securities portfolio to be available for reinvestment in the next two years. - Average interest-bearing liabilities totaled
$10 .21 billion, an increase of$1 .30 billion, or 14.60% from prior year. Average short term FHLB borrowings were$174 .73 million during the quarter compared to$263 .33 million one year prior.
Quarterly Provision for Credit Losses:
- The quarterly provision for credit losses was a benefit of
$0 .88 million compared to an expense of$11 .67 million in the prior year quarter and$2 .45 million in the linked quarter. Prior year quarter included$4 .01 million in provision related to the acquisition ofFarmers Bankshares, Inc. and its wholly owned subsidiaryFarmers Bank ("Farmers"). - The allowance for credit losses on loans decreased
$0 .63 million in first quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by continued strength in credit quality and modest improvements in the macroeconomic forecast scenarios utilized in our models, partially offset by modest loan growth. - Net loan charge-offs were $520 thousand in the quarter compared to
$3 .87 million in the prior year quarter and $68 thousand in the linked quarter. - The ratio of net charge-offs to average loans on an annualized basis was 0.02% in first quarter 2024, 0.14% in first quarter 2023, and zero percent in the linked quarter.
- The allowance for credit losses on loans represented 1.10% of total loans at
March 31, 2024 , 1.07% atMarch 31, 2023 , and 1.12% atDecember 31, 2023 . The allowance for credit losses on loans was 18.01 times nonperforming loans compared to 12.87 times atMarch 31, 2023 and 18.48 times atDecember 31, 2023 .
Quarterly Noninterest Income:
- Total noninterest income was
$63 .88 million compared to$60 .77 million in 2023, an increase of$3 .12 million, or 5.13%. - Residential mortgage banking income was
$10 .48 million compared to$9 .37 million in first quarter 2023. Loan volume increased to$424 .39 million in first quarter 2024 from$416 .22 million in first quarter 2023. The number of loans originated was consistent with first quarter 2023, but higher per-loan average balances resulted in higher production volume. Residential purchase activity comprised 95.66% of production volume in the first quarter of 2024 compared to 94.99% in the prior year quarter. - Gross margins on residential mortgage sales increased 23 basis points to 3.34% in the current quarter from 3.11% in first quarter 2023.
- Total net insurance commissions increased
$2 .72 million, or 11.90%, to$25 .54 million in first quarter 2024 compared to 2023. This increase was attributable to increases in property and casualty commissions which were driven by organic growth and a full quarter of income in 2024 related to the 2023Manry-Rawls, LLC acquisition. - Property management fee revenue increased 7.97%, or
$1 .24 million, to$16 .77 million in first quarter 2024 compared to 2023. Reservation income increased compared to the prior year due to an acquisition inMarch 2024 and a full quarter of revenue from an acquisition inMarch 2023 .
Quarterly Noninterest Expense:
- Total noninterest expense was
$125 .59 million compared to$124 .40 million in 2023, an increase of$1 .19 million, or 0.96%. Increases in salaries and employee benefits of$1 .96 million,FDIC and other insurance of$2 .75 million, and various expense line items, were partially offset by a decrease in acquisition expenses of$5 .37 million. - Salaries and benefits expense increases were driven by annual base salary adjustments effective third quarter 2023, acquisition-related increases in the number of employees, and higher health insurance costs. The increases were partially offset by a decline in incentive accruals and decreases in our Realty segment related to cost reductions in our mortgage business and the sale of
BHHS Towne Realty in 2023. FDIC and other insurance increased due to a higher assessment rate and an additional expense accrual of$1 .29 million before taxes, pursuant to the revised estimatedFDIC special assessment.
Consolidated Balance Sheet Highlights:
- In first quarter 2024, management continued its focus on strategic balance sheet management with a concentration on controlled loan growth and maintaining liquidity.
- Total assets were
$16 .88 billion for the quarter endedMarch 31, 2024 , a$49 .20 million increase compared to$16 .84 billion atDecember 31, 2023 . Total assets increased$153 .76 million, or 0.92%, from$16 .73 billion atMarch 31, 2023 . - Loans held for investment increased
$278 .56 million, or 2.49%, compared to prior year and$123 .32 million, or 1.09%, compared to the linked quarter, 4.38% on an annualized basis. - Mortgage loans held for sale decreased
$6 .43 million, or 4.09%, compared to prior year but increased$0 .74 million, or 0.49%, compared to the linked quarter. - Total deposits increased
$527 .94 million, or 3.88%, compared to prior year, primarily in interest- bearing demand and time deposits. In the linked quarter comparison, total deposits increased$232 .87 million, or 6.74% on an annualized basis. - Noninterest-bearing deposits decreased
$875 .23 million or 17.27%, compared to prior year, and$148 .57 million, or 3.42%, compared to the linked quarter. - Total borrowings decreased
$515 .27 million, or 63.91%, compared to first quarter 2023 and$201 .60 million, or 40.93%, compared to the linked quarter driven by declines in short-term FHLB advances.
- Total investment securities were
$2 .54 billion compared to$2 .64 billion atDecember 31, 2023 and$2 .67 billion atMarch 31, 2023 . The weighted average duration of the portfolio atMarch 31, 2024 was 3.3 years. The carrying value of the available for sale debt securities portfolio included net unrealized losses of$170 .84 million atMarch 31, 2024 , compared to$162 .12 million atDecember 31, 2023 and$165 .71 million atMarch 31, 2023 , with the changes related to market valuation adjustments due to changing interest rates.
Loans and Asset Quality:
- Total loans held for investment were
$11 .45 billion atMarch 31, 2024 compared to$11 .33 billion atDecember 31, 2023 and$11 .17 billion atMarch 31, 2023 . - Nonperforming assets were
$7 .77 million, or 0.05% of total assets, compared to$9 .89 million, or 0.06%, atMarch 31, 2023 . - Nonperforming loans were 0.06% of period end loans at
March 31, 2024 , compared to 0.08% atMarch 31, 2023 . - Foreclosed property increased to $780 thousand from $564 thousand at
March 31, 2023 .
Deposits and Borrowings:
- Total deposits were
$14 .13 billion compared to$13 .89 billion atDecember 31, 2023 and$13 .60 billion atMarch 31, 2023 . - The ratio of period end loans held for investment to deposits was 81.07% compared to 81.54% at
December 31, 2023 and 82.17% atMarch 31, 2023 . - Noninterest-bearing deposits were 29.69% of total deposits at
March 31, 2024 compared to 31.26% atDecember 31, 2023 and 37.28% atMarch 31, 2023 . Noninterest-bearing deposits declined$0 .88 billion, or 17.27%, compared toMarch 31, 2023 , primarily in commercial and escrow accounts. - Total borrowings were
$290 .98 million compared to$492 .58 million atDecember 31, 2023 and$806 .25 million atMarch 31, 2023 .
Capital:
- Common equity tier 1 capital ratio of 12.20%(1).
- Tier 1 leverage capital ratio of 10.15%(1).
- Tier 1 risk-based capital ratio of 12.32%(1).
- Total risk-based capital ratio of 15.10% (1).
- Book value per common share was
$27.33 compared to$27.24 atDecember 31, 2023 and$26.40 atMarch 31, 2023 . - Tangible book value per common share (non-GAAP) was
$20.31 compared to$20.28 atDecember 31, 2023 and$19.04 atMarch 31, 2023 .
(1) Preliminary.
About
Founded in 1999,
Now celebrating 25 years,
Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in
Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of
Media contact:
William I. Foster III, President and Chief Executive Officer, 757-417-6482
Investor contact:
Selected Financial Highlights (unaudited) | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Income and Performance Ratios: | ||||||||||||||||||||
Total revenue | $ | 167,102 | $ | 155,546 | $ | 172,864 | $ | 181,568 | $ | 184,144 | ||||||||||
Net income | 35,127 | 28,545 | 44,745 | 43,368 | 38,478 | |||||||||||||||
Net income available to common shareholders | 34,687 | 28,804 | 44,862 | 41,716 | 38,333 | |||||||||||||||
Net income per common share – diluted | 0.46 | 0.39 | 0.60 | 0.56 | 0.52 | |||||||||||||||
Book value per common share | 27.33 | 27.24 | 26.28 | 26.36 | 26.40 | |||||||||||||||
Book value per common share – tangible (non-GAAP) | 20.31 | 20.28 | 19.28 | 19.31 | 19.04 | |||||||||||||||
Return on average assets | 0.83 | % | 0.68 | % | 1.06 | % | 0.99 | % | 0.95 | % | ||||||||||
Return on average assets – tangible (non-GAAP) | 0.92 | % | 0.77 | % | 1.17 | % | 1.10 | % | 1.05 | % | ||||||||||
Return on average equity | 6.84 | % | 5.75 | % | 8.96 | % | 8.46 | % | 7.99 | % | ||||||||||
Return on average equity – tangible (non-GAAP) | 9.87 | % | 8.53 | % | 12.97 | % | 12.35 | % | 11.71 | % | ||||||||||
Return on average common equity | 6.89 | % | 5.79 | % | 9.04 | % | 8.52 | % | 8.05 | % | ||||||||||
Return on average common equity – tangible (non-GAAP) | 9.98 | % | 8.62 | % | 13.11 | % | 12.48 | % | 11.83 | % | ||||||||||
Noninterest income as a percentage of total revenue | 38.23 | % | 30.74 | % | 34.60 | % | 37.43 | % | 33.00 | % | ||||||||||
Regulatory Capital Ratios (1): | ||||||||||||||||||||
Common equity tier 1 | 12.20 | % | 12.18 | % | 12.19 | % | 11.99 | % | 11.68 | % | ||||||||||
Tier 1 | 12.32 | % | 12.29 | % | 12.31 | % | 12.11 | % | 11.80 | % | ||||||||||
Total | 15.10 | % | 15.06 | % | 15.09 | % | 14.88 | % | 14.55 | % | ||||||||||
Tier 1 leverage ratio | 10.15 | % | 10.17 | % | 10.06 | % | 9.85 | % | 9.86 | % | ||||||||||
Asset Quality: | ||||||||||||||||||||
Allowance for credit losses on loans to nonperforming loans | 18.01 | x | 18.48 | x | 17.60 | x | 18.09 | x | 12.87 | x | ||||||||||
Allowance for credit losses on loans to period end loans | 1.10 | % | 1.12 | % | 1.12 | % | 1.10 | % | 1.07 | % | ||||||||||
Nonperforming loans to period end loans | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.08 | % | ||||||||||
Nonperforming assets to period end assets | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | % | ||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.02 | % | — | % | (0.04 | )% | — | % | 0.14 | % | ||||||||||
Net charge-offs (recoveries) | $ | 520 | $ | 68 | $ | (1,074 | ) | $ | 9 | $ | 3,874 | |||||||||
Nonperforming loans | $ | 6,987 | $ | 6,843 | $ | 7,110 | $ | 6,827 | $ | 9,322 | ||||||||||
Former bank premises | — | — | — | 1,782 | — | |||||||||||||||
Foreclosed property | 780 | 908 | 766 | 738 | 564 | |||||||||||||||
Total nonperforming assets | $ | 7,767 | $ | 7,751 | $ | 7,876 | $ | 9,347 | $ | 9,886 | ||||||||||
Loans past due 90 days and still accruing interest | $ | 323 | $ | 735 | $ | 970 | $ | 360 | $ | 206 | ||||||||||
Allowance for credit losses on loans | $ | 125,835 | $ | 126,461 | $ | 125,159 | $ | 123,513 | $ | 120,002 | ||||||||||
Mortgage Banking: | ||||||||||||||||||||
Loans originated, mortgage | $ | 289,191 | $ | 302,616 | $ | 348,387 | $ | 409,050 | $ | 280,401 | ||||||||||
Loans originated, joint venture | 135,197 | 126,332 | 172,021 | 207,450 | 135,818 | |||||||||||||||
Total loans originated | $ | 424,388 | $ | 428,948 | $ | 520,408 | $ | 616,500 | $ | 416,219 | ||||||||||
Number of loans originated | 1,247 | 1,237 | 1,487 | 1,715 | 1,249 | |||||||||||||||
Number of originators | 176 | 181 | 192 | 196 | 194 | |||||||||||||||
Purchase % | 95.66 | % | 95.06 | % | 95.96 | % | 96.32 | % | 94.99 | % | ||||||||||
Loans sold | $ | 410,895 | $ | 468,014 | $ | 567,291 | $ | 525,078 | $ | 346,288 | ||||||||||
Rate lock asset | $ | 1,681 | $ | 895 | $ | 1,348 | $ | 1,551 | $ | 1,435 | ||||||||||
Gross realized gain on sales and fees as a % of loans originated | 3.34 | % | 3.06 | % | 3.17 | % | 2.96 | % | 3.11 | % | ||||||||||
Other Ratios: | ||||||||||||||||||||
Net interest margin | 2.72 | % | 2.83 | % | 2.95 | % | 2.98 | % | 3.36 | % | ||||||||||
Net interest margin-fully tax equivalent (non-GAAP) | 2.75 | % | 2.86 | % | 2.98 | % | 3.01 | % | 3.39 | % | ||||||||||
Average earning assets/total average assets | 90.52 | % | 90.48 | % | 90.73 | % | 90.96 | % | 90.98 | % | ||||||||||
Average loans/average deposits | 81.48 | % | 80.72 | % | 80.75 | % | 83.72 | % | 82.40 | % | ||||||||||
Average noninterest deposits/total average deposits | 30.25 | % | 31.69 | % | 33.50 | % | 36.07 | % | 38.35 | % | ||||||||||
Period end equity/period end total assets | 12.24 | % | 12.21 | % | 11.90 | % | 11.56 | % | 11.89 | % | ||||||||||
Efficiency ratio (non-GAAP) | 73.25 | % | 76.17 | % | 66.21 | % | 70.41 | % | 65.64 | % | ||||||||||
(1) Current reporting period regulatory capital ratios are preliminary. |
Selected Data (unaudited) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
% Change | ||||||||||||||||||
Q1 | Q1 | Q4 | Q1 24 vs. | Q1 24 vs. | ||||||||||||||
Available-for-sale securities, at fair value | 2024 | 2023 | 2023 | Q1 23 | Q4 23 | |||||||||||||
$ | 294,723 | $ | 334,211 | $ | 306,386 | (11.82 | )% | (3.81 | )% | |||||||||
27,534 | 27,272 | 27,684 | 0.96 | % | (0.54 | )% | ||||||||||||
Municipal securities | 447,323 | 508,439 | 510,134 | (12.02 | )% | (12.31 | )% | |||||||||||
Trust preferred and other corporate securities | 87,983 | 76,965 | 86,011 | 14.32 | % | 2.29 | % | |||||||||||
Mortgage-backed securities issued by GSEs and GNMA | 1,347,920 | 1,132,746 | 1,200,625 | 19.00 | % | 12.27 | % | |||||||||||
Allowance for credit losses | (1,382 | ) | (1,150 | ) | (1,498 | ) | 20.17 | % | (7.74 | )% | ||||||||
Total | $ | 2,204,101 | $ | 2,078,483 | $ | 2,129,342 | 6.04 | % | 3.51 | % | ||||||||
Gross unrealized gains (losses) reflected in financial statements | ||||||||||||||||||
Total gross unrealized gains | $ | 1,868 | $ | 2,218 | $ | 3,740 | (15.78 | )% | (50.05 | )% | ||||||||
Total gross unrealized losses | (172,708 | ) | (167,929 | ) | (165,863 | ) | 2.85 | % | 4.13 | % | ||||||||
Net unrealized gains (losses) and other adjustments on AFS securities | $ | (170,840 | ) | $ | (165,711 | ) | $ | (162,123 | ) | 3.10 | % | 5.38 | % | |||||
Held-to-maturity securities, at amortized cost | ||||||||||||||||||
$ | 102,042 | $ | 101,281 | $ | 101,850 | 0.75 | % | 0.19 | % | |||||||||
197,356 | 433,584 | 362,593 | (54.48 | )% | (45.57 | )% | ||||||||||||
Municipal securities | 5,294 | 5,203 | 5,272 | 1.75 | % | 0.42 | % | |||||||||||
Trust preferred corporate securities | 2,159 | 2,210 | 2,172 | (2.31 | )% | (0.60 | )% | |||||||||||
Mortgage-backed securities issued by GSE | 5,659 | 5,948 | 5,705 | (4.86 | )% | (0.81 | )% | |||||||||||
Allowance for credit losses | (82 | ) | (88 | ) | (84 | ) | (6.82 | )% | (2.38 | )% | ||||||||
Total | $ | 312,428 | $ | 548,138 | $ | 477,508 | (43.00 | )% | (34.57 | )% | ||||||||
Total gross unrealized gains | $ | 265 | $ | 392 | $ | 380 | (32.40 | )% | (30.26 | )% | ||||||||
Total gross unrealized losses | (14,262 | ) | (24,018 | ) | (15,316 | ) | (40.62 | )% | (6.88 | )% | ||||||||
Net unrealized gains (losses) in HTM securities | $ | (13,997 | ) | $ | (23,626 | ) | $ | (14,936 | ) | (40.76 | )% | (6.29 | )% | |||||
Total unrealized gains (losses) on AFS and HTM securities | $ | (184,837 | ) | $ | (189,337 | ) | $ | (177,059 | ) | (2.38 | )% | 4.39 | % | |||||
% Change | ||||||||||||||||||
Q1 | Q1 | Q4 | Q1 24 vs. | Q1 24 vs. | ||||||||||||||
2024 | 2023 | 2023 | Q1 23 | Q4 23 | ||||||||||||||
Real estate – construction and development | $ | 1,255,741 | $ | 1,473,034 | $ | 1,249,735 | (14.75 | )% | 0.48 | % | ||||||||
Commercial real estate – owner occupied | 1,700,753 | 1,675,119 | 1,699,386 | 1.53 | % | 0.08 | % | |||||||||||
Commercial real estate – non owner occupied | 3,178,947 | 2,908,791 | 3,117,071 | 9.29 | % | 1.99 | % | |||||||||||
Real estate – multifamily | 595,075 | 505,237 | 583,209 | 17.78 | % | 2.03 | % | |||||||||||
Residential 1-4 family | 1,882,296 | 1,734,698 | 1,852,891 | 8.51 | % | 1.59 | % | |||||||||||
HELOC | 386,361 | 387,967 | 382,979 | (0.41 | )% | 0.88 | % | |||||||||||
Commercial and industrial business (C&I) | 1,288,550 | 1,297,707 | 1,265,169 | (0.71 | )% | 1.85 | % | |||||||||||
Government | 528,341 | 510,494 | 525,261 | 3.50 | % | 0.59 | % | |||||||||||
Indirect | 555,482 | 582,306 | 558,789 | (4.61 | )% | (0.59 | )% | |||||||||||
Consumer loans and other | 80,797 | 98,432 | 94,531 | (17.92 | )% | (14.53 | )% | |||||||||||
Total | $ | 11,452,343 | $ | 11,173,785 | $ | 11,329,021 | 2.49 | % | 1.09 | % | ||||||||
% Change | ||||||||||||||||||
Deposits | Q1 | Q1 | Q4 | Q1 24 vs. | Q1 24 vs. | |||||||||||||
2024 | 2023 | 2023 | Q1 23 | Q4 23 | ||||||||||||||
Noninterest-bearing demand | $ | 4,194,132 | $ | 5,069,363 | $ | 4,342,701 | (17.27 | )% | (3.42 | )% | ||||||||
Interest-bearing: | ||||||||||||||||||
Demand and money market accounts | 6,916,701 | 6,284,184 | 6,757,619 | 10.07 | % | 2.35 | % | |||||||||||
Savings | 326,179 | 389,173 | 336,492 | (16.19 | )% | (3.06 | )% | |||||||||||
Certificates of deposits | 2,689,062 | 1,855,411 | 2,456,394 | 44.93 | % | 9.47 | % | |||||||||||
Total | 14,126,074 | 13,598,131 | 13,893,206 | 3.88 | % | 1.68 | % |
Average Balances, Yields and Rate Paid (unaudited) | |||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||
Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Loans (net of unearned income and deferred costs) | $ | 11,379,323 | $ | 151,811 | 5.37 | % | $ | 11,229,965 | $ | 147,647 | 5.22 | % | $ | 11,097,626 | $ | 133,536 | 4.88 | % | |||||||||||||||
Taxable investment securities | 2,440,652 | 18,716 | 3.07 | % | 2,365,928 | 18,820 | 3.18 | % | 2,438,489 | 16,816 | 2.76 | % | |||||||||||||||||||||
Tax-exempt investment securities | 161,538 | 1,549 | 3.84 | % | 195,603 | 1,989 | 4.07 | % | 188,033 | 1,887 | 4.01 | % | |||||||||||||||||||||
Total securities | 2,602,190 | 20,265 | 3.12 | % | 2,561,531 | 20,809 | 3.25 | % | 2,626,522 | 18,703 | 2.85 | % | |||||||||||||||||||||
Interest-bearing deposits | 1,167,322 | 14,234 | 4.90 | % | 1,141,086 | 13,967 | 4.86 | % | 1,044,538 | 10,649 | 4.13 | % | |||||||||||||||||||||
Mortgage loans held for sale | 116,868 | 1,716 | 5.87 | % | 162,543 | 2,886 | 7.10 | % | 105,018 | 1,604 | 6.11 | % | |||||||||||||||||||||
Total earning assets | 15,265,703 | 188,026 | 4.95 | % | 15,095,125 | 185,309 | 4.87 | % | 14,873,704 | 164,492 | 4.49 | % | |||||||||||||||||||||
Less: allowance for loan losses | (127,413 | ) | (126,205 | ) | (114,447 | ) | |||||||||||||||||||||||||||
Total nonearning assets | 1,725,945 | 1,714,122 | 1,589,783 | ||||||||||||||||||||||||||||||
Total assets | $ | 16,864,235 | $ | 16,683,042 | $ | 16,349,040 | |||||||||||||||||||||||||||
Liabilities and Equity: | |||||||||||||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||||||
Demand and money market | $ | 6,828,053 | $ | 47,985 | 2.83 | % | $ | 6,786,850 | $ | 46,833 | 2.74 | % | $ | 6,217,754 | $ | 23,302 | 1.52 | % | |||||||||||||||
Savings | 329,036 | 881 | 1.08 | % | 345,172 | 962 | 1.11 | % | 401,776 | 844 | 0.85 | % | |||||||||||||||||||||
Certificates of deposit | 2,583,938 | 29,522 | 4.60 | % | 2,370,723 | 25,405 | 4.25 | % | 1,683,354 | 9,788 | 2.36 | % | |||||||||||||||||||||
Total interest-bearing deposits | 9,741,027 | 78,388 | 3.24 | % | 9,502,745 | 73,200 | 3.06 | % | 8,302,884 | 33,934 | 1.66 | % | |||||||||||||||||||||
Borrowings | 212,375 | 3,078 | 5.73 | % | 114,151 | 958 | 3.28 | % | 355,833 | 3,915 | 4.40 | % | |||||||||||||||||||||
Subordinated debt, net | 255,878 | 2,236 | 3.50 | % | 255,663 | 2,236 | 3.50 | % | 250,066 | 2,169 | 3.47 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 10,209,280 | 83,702 | 3.30 | % | 9,872,559 | 76,394 | 3.07 | % | 8,908,783 | 40,018 | 1.82 | % | |||||||||||||||||||||
Demand deposits | 4,224,104 | 4,408,712 | 5,164,415 | ||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 390,576 | 413,469 | 329,840 | ||||||||||||||||||||||||||||||
Total liabilities | 14,823,960 | 14,694,740 | 14,403,038 | ||||||||||||||||||||||||||||||
Shareholders’ equity | 2,040,275 | 1,988,302 | 1,946,002 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 16,864,235 | $ | 16,683,042 | $ | 16,349,040 | |||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (4) | $ | 104,324 | $ | 108,915 | $ | 124,474 | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (1,106 | ) | (1,182 | ) | (1,096 | ) | |||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 103,218 | $ | 107,733 | $ | 123,378 | |||||||||||||||||||||||||||
Interest rate spread (2)(4) | 1.65 | % | 1.80 | % | 2.67 | % | |||||||||||||||||||||||||||
Interest expense as a percent of average earning assets | 2.21 | % | 2.01 | % | 1.09 | % | |||||||||||||||||||||||||||
Net interest margin (tax equivalent basis) (3)(4) | 2.75 | % | 2.86 | % | 3.39 | % | |||||||||||||||||||||||||||
Total cost of deposits | 2.26 | % | 2.09 | % | 1.02 | % | |||||||||||||||||||||||||||
(1) Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
Consolidated Balance Sheets | ||||||||
(dollars in thousands, except share data) | ||||||||
2024 | 2023 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 75,802 | $ | 85,584 | ||||
Interest-bearing deposits at FRB – | 926,635 | 939,356 | ||||||
Federal funds sold and interest-bearing deposits in financial institutions | 98,673 | 103,417 | ||||||
Total Cash and Cash Equivalents | 1,101,110 | 1,128,357 | ||||||
Securities available for sale, at fair value (amortized cost of | 2,204,101 | 2,129,342 | ||||||
Securities held to maturity, at amortized cost (fair value | 312,510 | 477,592 | ||||||
Less: allowance for credit losses | (82 | ) | (84 | ) | ||||
Securities held to maturity, net of allowance for credit losses | 312,428 | 477,508 | ||||||
Other equity securities | 13,661 | 13,792 | ||||||
FHLB stock | 12,139 | 21,372 | ||||||
2,542,329 | 2,642,014 | |||||||
Mortgage loans held for sale | 150,727 | 149,987 | ||||||
Loans, net of unearned income and deferred costs | 11,452,343 | 11,329,021 | ||||||
Less: allowance for credit losses | (125,835 | ) | (126,461 | ) | ||||
Net Loans | 11,326,508 | 11,202,560 | ||||||
Premises and equipment, net | 342,569 | 337,598 | ||||||
457,619 | 456,335 | |||||||
Other intangible assets, net | 68,758 | 64,634 | ||||||
BOLI | 279,293 | 277,445 | ||||||
Other assets | 615,324 | 576,109 | ||||||
TOTAL ASSETS | $ | 16,884,237 | $ | 16,835,039 | ||||
LIABILITIES AND EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 4,194,132 | $ | 4,342,701 | ||||
Interest-bearing: | ||||||||
Demand and money market accounts | 6,916,701 | 6,757,619 | ||||||
Savings | 326,179 | 336,492 | ||||||
Certificates of deposit | 2,689,062 | 2,456,394 | ||||||
Total Deposits | 14,126,074 | 13,893,206 | ||||||
Advances from the FHLB | 3,775 | 203,958 | ||||||
Subordinated debt, net | 256,011 | 255,796 | ||||||
Repurchase agreements and other borrowings | 31,198 | 32,826 | ||||||
Total Borrowings | 290,984 | 492,580 | ||||||
Other liabilities | 401,307 | 393,375 | ||||||
TOTAL LIABILITIES | 14,818,365 | 14,779,161 | ||||||
Preferred stock, authorized and unissued shares – 2,000,000 | — | — | ||||||
Common stock, | 125,009 | 124,847 | ||||||
Capital surplus | 1,114,038 | 1,112,761 | ||||||
Retained earnings | 937,065 | 921,126 | ||||||
Common stock issued to deferred compensation trust, at cost 1,008,276 and 1,004,717 shares at | (20,915 | ) | (20,813 | ) | ||||
Deferred compensation trust | 20,915 | 20,813 | ||||||
Accumulated other comprehensive income (loss) | (126,586 | ) | (118,762 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 2,049,526 | 2,039,972 | ||||||
Noncontrolling interest | 16,346 | 15,906 | ||||||
TOTAL EQUITY | 2,065,872 | 2,055,878 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,884,237 | $ | 16,835,039 |
Consolidated Statements of Income (unaudited) | ||||||||
(dollars in thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
INTEREST INCOME: | ||||||||
Loans, including fees | $ | 150,974 | $ | 132,768 | ||||
Investment securities | 19,996 | 18,375 | ||||||
Interest-bearing deposits in financial institutions and federal funds sold | 14,234 | 10,649 | ||||||
Mortgage loans held for sale | 1,716 | 1,604 | ||||||
Total interest income | 186,920 | 163,396 | ||||||
INTEREST EXPENSE: | ||||||||
Deposits | 78,388 | 33,934 | ||||||
Advances from the FHLB | 2,438 | 2,992 | ||||||
Subordinated debt, net | 2,236 | 2,169 | ||||||
Repurchase agreements and other borrowings | 640 | 923 | ||||||
Total interest expense | 83,702 | 40,018 | ||||||
Net interest income | 103,218 | 123,378 | ||||||
PROVISION FOR CREDIT LOSSES | (877 | ) | 11,670 | |||||
Net interest income after provision for credit losses | 104,095 | 111,708 | ||||||
NONINTEREST INCOME: | ||||||||
Residential mortgage banking income, net | 10,477 | 9,372 | ||||||
Insurance commissions and other income, net | 25,539 | 22,823 | ||||||
Property management income, net | 16,773 | 15,535 | ||||||
Real estate brokerage income, net | — | 1,791 | ||||||
Service charges on deposit accounts | 3,061 | 2,851 | ||||||
Credit card merchant fees, net | 1,551 | 1,545 | ||||||
BOLI | 1,842 | 1,672 | ||||||
Other income | 4,567 | 5,177 | ||||||
Net gain/(loss) on investment securities | 74 | — | ||||||
Total noninterest income | 63,884 | 60,766 | ||||||
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 71,377 | 69,420 | ||||||
Occupancy | 9,422 | 9,064 | ||||||
Furniture and equipment | 4,478 | 4,244 | ||||||
Amortization – intangibles | 3,246 | 3,524 | ||||||
Software | 6,100 | 5,624 | ||||||
Data processing | 3,916 | 3,353 | ||||||
Professional fees | 3,180 | 3,011 | ||||||
Advertising and marketing | 4,582 | 4,401 | ||||||
Other expenses | 19,290 | 21,756 | ||||||
Total noninterest expense | 125,591 | 124,397 | ||||||
Income before income tax expense and noncontrolling interest | 42,388 | 48,077 | ||||||
Provision for income tax expense | 7,261 | 9,599 | ||||||
Net income | $ | 35,127 | $ | 38,478 | ||||
Net income attributable to noncontrolling interest | (440 | ) | (145 | ) | ||||
Net income attributable to | $ | 34,687 | $ | 38,333 | ||||
Per common share information | ||||||||
Basic earnings | $ | 0.46 | $ | 0.52 | ||||
Diluted earnings | $ | 0.46 | $ | 0.52 | ||||
Cash dividends declared | $ | 0.25 | $ | 0.23 |
Consolidated Balance Sheets – Five Quarter Trend | ||||||||||||||||||||
(dollars in thousands, except share data) | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
(unaudited) | (audited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 75,802 | $ | 85,584 | $ | 83,949 | $ | 106,994 | $ | 97,502 | ||||||||||
Interest-bearing deposits at FRB – | 926,635 | 939,356 | 1,029,276 | 1,427,044 | 1,040,112 | |||||||||||||||
Federal funds sold and interest-bearing deposits in financial institutions | 98,673 | 103,417 | 102,527 | 102,231 | 104,924 | |||||||||||||||
Total Cash and Cash Equivalents | 1,101,110 | 1,128,357 | 1,215,752 | 1,636,269 | 1,242,538 | |||||||||||||||
Securities available for sale | 2,204,101 | 2,129,342 | 1,963,453 | 2,005,851 | 2,078,483 | |||||||||||||||
Securities held to maturity | 312,510 | 477,592 | 547,854 | 548,017 | 548,226 | |||||||||||||||
Less: allowance for credit losses | (82 | ) | (84 | ) | (85 | ) | (87 | ) | (88 | ) | ||||||||||
Securities held to maturity, net of allowance for credit losses | 312,428 | 477,508 | 547,769 | 547,930 | 548,138 | |||||||||||||||
Other equity securities | 13,661 | 13,792 | 14,062 | 13,798 | 13,341 | |||||||||||||||
FHLB stock | 12,139 | 21,372 | 16,634 | 40,454 | 29,837 | |||||||||||||||
2,542,329 | 2,642,014 | 2,541,918 | 2,608,033 | 2,669,799 | ||||||||||||||||
Mortgage loans held for sale | 150,727 | 149,987 | 188,048 | 229,502 | 157,161 | |||||||||||||||
Loans, net of unearned income and deferred costs | 11,452,343 | 11,329,021 | 11,172,971 | 11,208,014 | 11,173,785 | |||||||||||||||
Less: allowance for credit losses | (125,835 | ) | (126,461 | ) | (125,159 | ) | (123,513 | ) | (120,002 | ) | ||||||||||
Net Loans | 11,326,508 | 11,202,560 | 11,047,812 | 11,084,501 | 11,053,783 | |||||||||||||||
Premises and equipment, net | 342,569 | 337,598 | 335,522 | 326,686 | 321,944 | |||||||||||||||
457,619 | 456,335 | 456,684 | 456,695 | 477,234 | ||||||||||||||||
Other intangible assets, net | 68,758 | 64,634 | 67,496 | 71,106 | 73,238 | |||||||||||||||
BOLI | 279,293 | 277,445 | 275,240 | 273,435 | 271,704 | |||||||||||||||
Other assets | 615,324 | 576,109 | 551,884 | 538,848 | 463,076 | |||||||||||||||
TOTAL ASSETS | $ | 16,884,237 | $ | 16,835,039 | $ | 16,680,356 | $ | 17,225,075 | $ | 16,730,477 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 4,194,132 | $ | 4,342,701 | $ | 4,444,861 | $ | 4,774,830 | $ | 5,069,363 | ||||||||||
Interest-bearing: | ||||||||||||||||||||
Demand and money market accounts | 6,916,701 | 6,757,619 | 6,764,415 | 6,529,336 | 6,284,184 | |||||||||||||||
Savings | 326,179 | 336,492 | 350,031 | 361,891 | 389,173 | |||||||||||||||
Certificates of deposit | 2,689,062 | 2,456,394 | 2,321,498 | 2,100,604 | 1,855,411 | |||||||||||||||
Total Deposits | 14,126,074 | 13,893,206 | 13,880,805 | 13,766,661 | 13,598,131 | |||||||||||||||
Advances from the FHLB | 3,775 | 203,958 | 104,139 | 754,319 | 504,497 | |||||||||||||||
Subordinated debt, net | 256,011 | 255,796 | 255,580 | 255,365 | 255,151 | |||||||||||||||
Repurchase agreements and other borrowings | 31,198 | 32,826 | 47,315 | 49,898 | 46,602 | |||||||||||||||
Total Borrowings | 290,984 | 492,580 | 407,034 | 1,059,582 | 806,250 | |||||||||||||||
Other liabilities | 401,307 | 393,375 | 408,305 | 408,333 | 336,201 | |||||||||||||||
TOTAL LIABILITIES | 14,818,365 | 14,779,161 | 14,696,144 | 15,234,576 | 14,740,582 | |||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock, | 125,009 | 124,847 | 124,837 | 124,805 | 124,682 | |||||||||||||||
Capital surplus | 1,114,038 | 1,112,761 | 1,111,152 | 1,109,526 | 1,109,387 | |||||||||||||||
Retained earnings | 937,065 | 921,126 | 911,042 | 884,901 | 861,905 | |||||||||||||||
Common stock issued to deferred compensation trust, at cost | (20,915 | ) | (20,813 | ) | (20,740 | ) | (20,134 | ) | (18,839 | ) | ||||||||||
Deferred compensation trust | 20,915 | 20,813 | 20,740 | 20,134 | 18,839 | |||||||||||||||
Accumulated other comprehensive income (loss) | (126,586 | ) | (118,762 | ) | (179,043 | ) | (145,392 | ) | (121,297 | ) | ||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 2,049,526 | 2,039,972 | 1,967,988 | 1,973,840 | 1,974,677 | |||||||||||||||
Noncontrolling interest | 16,346 | 15,906 | 16,224 | 16,659 | 15,218 | |||||||||||||||
TOTAL EQUITY | 2,065,872 | 2,055,878 | 1,984,212 | 1,990,499 | 1,989,895 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,884,237 | $ | 16,835,039 | $ | 16,680,356 | $ | 17,225,075 | $ | 16,730,477 |
Consolidated Statements of Income – Five Quarter Trend (unaudited) | ||||||||||||||||||||
(dollars in thousands, except share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Loans, including fees | $ | 150,974 | $ | 146,810 | $ | 143,605 | $ | 138,977 | $ | 132,768 | ||||||||||
Investment securities | 19,996 | 20,464 | 20,292 | 18,851 | 18,375 | |||||||||||||||
Interest-bearing deposits in financial institutions and federal funds sold | 14,234 | 13,967 | 15,031 | 14,488 | 10,649 | |||||||||||||||
Mortgage loans held for sale | 1,716 | 2,886 | 3,928 | 2,547 | 1,604 | |||||||||||||||
Total interest income | 186,920 | 184,127 | 182,856 | 174,863 | 163,396 | |||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Deposits | 78,388 | 73,200 | 64,171 | 48,671 | 33,934 | |||||||||||||||
Advances from the FHLB | 2,438 | 917 | 3,438 | 10,407 | 2,992 | |||||||||||||||
Subordinated debt, net | 2,236 | 2,236 | 2,245 | 2,236 | 2,169 | |||||||||||||||
Repurchase agreements and other borrowings | 640 | 41 | (56 | ) | (62 | ) | 923 | |||||||||||||
Total interest expense | 83,702 | 76,394 | 69,798 | 61,252 | 40,018 | |||||||||||||||
Net interest income | 103,218 | 107,733 | 113,058 | 113,611 | 123,378 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | (877 | ) | 2,446 | 1,007 | 3,556 | 11,670 | ||||||||||||||
Net interest income after provision for credit losses | 104,095 | 105,287 | 112,051 | 110,055 | 111,708 | |||||||||||||||
NONINTEREST INCOME: | ||||||||||||||||||||
Residential mortgage banking income, net | 10,477 | 8,035 | 10,648 | 11,360 | 9,372 | |||||||||||||||
Insurance commissions and other income, net | 25,539 | 21,207 | 23,777 | 22,498 | 22,823 | |||||||||||||||
Property management income, net | 16,773 | 7,358 | 12,800 | 12,098 | 15,535 | |||||||||||||||
Real estate brokerage income, net | — | (32 | ) | (63 | ) | 1,834 | 1,791 | |||||||||||||
Service charges on deposit accounts | 3,061 | 3,035 | 2,802 | 3,018 | 2,851 | |||||||||||||||
Credit card merchant fees, net | 1,551 | 1,476 | 2,006 | 1,682 | 1,545 | |||||||||||||||
BOLI | 1,842 | 2,206 | 1,814 | 1,710 | 1,672 | |||||||||||||||
Other income | 4,567 | 4,528 | 6,022 | 13,757 | 5,177 | |||||||||||||||
Net gain/(loss) on investment securities | 74 | — | — | — | — | |||||||||||||||
Total noninterest income | 63,884 | 47,813 | 59,806 | 67,957 | 60,766 | |||||||||||||||
NONINTEREST EXPENSE: | ||||||||||||||||||||
Salaries and employee benefits | 71,377 | 66,035 | 67,258 | 67,445 | 69,420 | |||||||||||||||
Occupancy | 9,422 | 9,308 | 9,027 | 9,487 | 9,064 | |||||||||||||||
Furniture and equipment | 4,478 | 4,445 | 4,100 | 4,389 | 4,244 | |||||||||||||||
Amortization – intangibles | 3,246 | 3,411 | 3,610 | 3,610 | 3,524 | |||||||||||||||
Software expense | 6,100 | 6,743 | 6,130 | 6,169 | 5,624 | |||||||||||||||
Data processing | 3,916 | 3,529 | 4,140 | 4,011 | 3,353 | |||||||||||||||
Professional fees | 3,180 | 3,339 | 2,770 | 3,166 | 3,011 | |||||||||||||||
Advertising and marketing | 4,582 | 3,377 | 3,653 | 3,959 | 4,401 | |||||||||||||||
Other expenses | 19,290 | 21,708 | 17,014 | 22,992 | 21,756 | |||||||||||||||
Total noninterest expense | 125,591 | 121,895 | 117,702 | 125,228 | 124,397 | |||||||||||||||
Income before income tax expense and noncontrolling interest | 42,388 | 31,205 | 54,155 | 52,784 | 48,077 | |||||||||||||||
Provision for income tax expense | 7,261 | 2,660 | 9,410 | 9,416 | 9,599 | |||||||||||||||
Net income | 35,127 | 28,545 | 44,745 | 43,368 | 38,478 | |||||||||||||||
Net income attributable to noncontrolling interest | (440 | ) | 259 | 117 | (1,652 | ) | (145 | ) | ||||||||||||
Net income attributable to | $ | 34,687 | $ | 28,804 | $ | 44,862 | $ | 41,716 | $ | 38,333 | ||||||||||
Per common share information | ||||||||||||||||||||
Basic earnings | $ | 0.46 | $ | 0.39 | $ | 0.60 | $ | 0.56 | $ | 0.52 | ||||||||||
Diluted earnings | $ | 0.46 | $ | 0.39 | $ | 0.60 | $ | 0.56 | $ | 0.52 | ||||||||||
Basic weighted average shares outstanding | 74,816,420 | 74,773,335 | 74,750,294 | 74,691,121 | 74,363,222 | |||||||||||||||
Diluted weighted average shares outstanding | 74,979,501 | 74,793,557 | 74,765,515 | 74,699,810 | 74,390,614 | |||||||||||||||
Cash dividends declared | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.23 |
Banking Segment Financial Information (unaudited) | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended | Increase/(Decrease) | ||||||||||||||||||
YTD 2024 over 2023 | |||||||||||||||||||
2024 | 2023 | 2023 | Amount | Percent | |||||||||||||||
Revenue | |||||||||||||||||||
Net interest income | $ | 102,682 | $ | 123,650 | $ | 106,906 | $ | (20,968 | ) | (16.96 | )% | ||||||||
Service charges on deposit accounts | 3,061 | 2,851 | 3,035 | 210 | 7.37 | % | |||||||||||||
Credit card merchant fees | 1,551 | 1,545 | 1,476 | 6 | 0.39 | % | |||||||||||||
Other income | 5,790 | 5,740 | 6,544 | 50 | 0.87 | % | |||||||||||||
Subtotal | 10,402 | 10,136 | 11,055 | 266 | 2.62 | % | |||||||||||||
Net gain/(loss) on investment securities | 74 | — | — | 74 | N/M | ||||||||||||||
Total noninterest income | 10,476 | 10,136 | 11,055 | 340 | 3.35 | % | |||||||||||||
Total revenue | 113,158 | 133,786 | 117,961 | (20,628 | ) | (15.42 | )% | ||||||||||||
Provision for credit losses | (976 | ) | 11,754 | 2,831 | (12,730 | ) | (108.30 | )% | |||||||||||
Expenses | |||||||||||||||||||
Salaries and employee benefits | 46,474 | 43,193 | 42,573 | 3,281 | 7.60 | % | |||||||||||||
Occupancy | 7,061 | 6,233 | 6,981 | 828 | 13.28 | % | |||||||||||||
Furniture and equipment | 3,648 | 3,333 | 3,621 | 315 | 9.45 | % | |||||||||||||
Amortization of intangible assets | 1,162 | 1,281 | 1,236 | (119 | ) | (9.29 | )% | ||||||||||||
Other expenses | 26,953 | 28,444 | 29,602 | (1,491 | ) | (5.24 | )% | ||||||||||||
Total expenses | 85,298 | 82,484 | 84,013 | 2,814 | 3.41 | % | |||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 28,836 | 39,548 | 31,117 | (10,712 | ) | (27.09 | )% | ||||||||||||
Corporate allocation | 1,069 | 1,200 | 1,054 | (131 | ) | (10.92 | )% | ||||||||||||
Income before income tax provision and noncontrolling interest | 29,905 | 40,748 | 32,171 | (10,843 | ) | (26.61 | )% | ||||||||||||
Provision for income tax expense | 4,105 | 7,651 | 2,661 | (3,546 | ) | (46.35 | )% | ||||||||||||
Net income | 25,800 | 33,097 | 29,510 | (7,297 | ) | (22.05 | )% | ||||||||||||
Noncontrolling interest | 120 | — | — | 120 | N/M | ||||||||||||||
Net income attributable to | $ | 25,920 | $ | 33,097 | $ | 29,510 | $ | (7,177 | ) | (21.68 | )% | ||||||||
Efficiency ratio (non-GAAP) | 74.40 | % | 60.70 | % | 70.17 | % | 13.70 | % | 22.57 | % |
Realty Segment Financial Information (unaudited) | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended | Increase/(Decrease) | ||||||||||||||||||
YTD 2024 over 2023 | |||||||||||||||||||
2024 | 2023 | 2023 | Amount | Percent | |||||||||||||||
Revenue | |||||||||||||||||||
Residential mortgage brokerage income, net | $ | 10,798 | $ | 9,794 | $ | 8,322 | $ | 1,004 | 10.25 | % | |||||||||
Real estate brokerage income, net | — | 1,791 | (32 | ) | (1,791 | ) | (100.00 | )% | |||||||||||
Title insurance and settlement fees | — | 291 | — | (291 | ) | (100.00 | )% | ||||||||||||
Property management fees, net | 16,773 | 15,535 | 7,358 | 1,238 | 7.97 | % | |||||||||||||
Income (loss) from unconsolidated subsidiary | 30 | 66 | (425 | ) | (36 | ) | (54.55 | )% | |||||||||||
Net interest and other income | 784 | 184 | 1,111 | 600 | 326.09 | % | |||||||||||||
Total revenue | 28,385 | 27,661 | 16,334 | 724 | 2.62 | % | |||||||||||||
Provision for credit losses | 99 | (84 | ) | (385 | ) | 183 | (217.86 | )% | |||||||||||
Expenses | |||||||||||||||||||
Salaries and employee benefits | 12,188 | 14,839 | 11,288 | (2,651 | ) | (17.87 | )% | ||||||||||||
Occupancy | 1,569 | 2,021 | 1,600 | (452 | ) | (22.37 | )% | ||||||||||||
Furniture and equipment | 594 | 693 | 611 | (99 | ) | (14.29 | )% | ||||||||||||
Amortization of intangible assets | 677 | 683 | 737 | (6 | ) | (0.88 | )% | ||||||||||||
Other expenses | 8,199 | 8,437 | 7,240 | (238 | ) | (2.82 | )% | ||||||||||||
Total expenses | 23,227 | 26,673 | 21,476 | (3,446 | ) | (12.92 | )% | ||||||||||||
Income (loss) before income tax, corporate allocation and noncontrolling interest | 5,059 | 1,072 | (4,757 | ) | 3,987 | 371.92 | % | ||||||||||||
Corporate allocation | (348 | ) | (600 | ) | (352 | ) | 252 | (42.00 | )% | ||||||||||
Income (loss) before income tax provision and noncontrolling interest | 4,711 | 472 | (5,109 | ) | 4,239 | 898.09 | % | ||||||||||||
Provision for income tax expense | 1,156 | 182 | (1,072 | ) | 974 | 535.16 | % | ||||||||||||
Net income (loss) | 3,555 | 290 | (4,037 | ) | 3,265 | 1,125.86 | % | ||||||||||||
Noncontrolling interest | (560 | ) | (145 | ) | 259 | (415 | ) | (286.21 | )% | ||||||||||
Net income (loss) attributable to | $ | 2,995 | $ | 145 | $ | (3,778 | ) | 2,850 | 1,965.52 | % | |||||||||
Efficiency ratio excluding gain on equity investment (non-GAAP) | 79.44 | % | 93.96 | % | 126.97 | % | (14.52 | )% | (15.45 | )% |
Insurance Segment Financial Information (unaudited) | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended | Increase/(Decrease) | ||||||||||||||||||
YTD 2024 over 2023 | |||||||||||||||||||
2024 | 2023 | 2023 | Amount | Percent | |||||||||||||||
Commission and fee income | |||||||||||||||||||
Property and casualty | $ | 20,722 | $ | 18,129 | $ | 19,795 | $ | 2,593 | 14.30 | % | |||||||||
Employee benefits | 4,826 | 4,587 | 4,332 | 239 | 5.21 | % | |||||||||||||
Specialized benefit services | 9 | 159 | 36 | (150 | ) | (94.34 | )% | ||||||||||||
Total commissions and fees | 25,557 | 22,875 | 24,163 | 2,682 | 11.72 | % | |||||||||||||
Contingency and bonus revenue | 4,503 | 4,369 | 1,276 | 134 | 3.07 | % | |||||||||||||
Other income | 11 | 6 | 8 | 5 | 83.33 | % | |||||||||||||
Total revenue | 30,071 | 27,250 | 25,447 | 2,821 | 10.35 | % | |||||||||||||
Employee commission expense | 4,512 | 4,553 | 4,197 | (41 | ) | (0.90 | )% | ||||||||||||
Revenue, net of commission expense | 25,559 | 22,697 | 21,250 | 2,862 | 12.61 | % | |||||||||||||
Salaries and employee benefits | 12,715 | 11,388 | 12,174 | 1,327 | 11.65 | % | |||||||||||||
Occupancy | 792 | 810 | 727 | (18 | ) | (2.22 | )% | ||||||||||||
Furniture and equipment | 236 | 218 | 213 | 18 | 8.26 | % | |||||||||||||
Amortization of intangible assets | 1,407 | 1,560 | 1,438 | (153 | ) | (9.81 | )% | ||||||||||||
Other expenses | 1,916 | 1,264 | 1,853 | 652 | 51.58 | % | |||||||||||||
Total operating expenses | 17,066 | 15,240 | 16,405 | 1,826 | 11.98 | % | |||||||||||||
Income before income tax, corporate allocation and noncontrolling interest | 8,493 | 7,457 | 4,845 | 1,036 | 13.89 | % | |||||||||||||
Corporate allocation | (721 | ) | (600 | ) | (702 | ) | (121 | ) | 20.17 | % | |||||||||
Income before income tax provision and noncontrolling interest | 7,772 | 6,857 | 4,143 | 915 | 13.34 | % | |||||||||||||
Provision for income tax expense | 2,000 | 1,766 | 1,071 | 234 | 13.25 | % | |||||||||||||
Net income | 5,772 | 5,091 | 3,072 | 681 | 13.38 | % | |||||||||||||
Noncontrolling interest | — | — | — | — | N/M | ||||||||||||||
Net income attributable to | $ | 5,772 | $ | 5,091 | $ | 3,072 | 681 | 13.38 | % | ||||||||||
Provision for income taxes | 2,000 | 1,766 | 1,071 | 234 | 13.25 | % | |||||||||||||
Depreciation, amortization and interest expense | 1,553 | 1,706 | 1,588 | (153 | ) | (8.97 | )% | ||||||||||||
EBITDA(non-GAAP) | $ | 9,325 | $ | 8,563 | $ | 5,731 | 762 | 8.90 | % | ||||||||||
Efficiency ratio(non-GAAP) | 61.27 | % | 60.27 | % | 70.43 | % | 1.00 | % | 1.66 | % |
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
(dollars in thousands) | ||||||||||||
Three Months Ended | ||||||||||||
2024 | 2023 | 2023 | ||||||||||
Return on average assets (GAAP) | 0.83 | % | 0.95 | % | 0.68 | % | ||||||
Impact of excluding average goodwill and other intangibles and amortization | 0.09 | % | 0.10 | % | 0.09 | % | ||||||
Return on average tangible assets (non-GAAP) | 0.92 | % | 1.05 | % | 0.77 | % | ||||||
Return on average equity (GAAP) | 6.84 | % | 7.99 | % | 5.75 | % | ||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.03 | % | 3.72 | % | 2.78 | % | ||||||
Return on average tangible equity (non-GAAP) | 9.87 | % | 11.71 | % | 8.53 | % | ||||||
Return on average common equity (GAAP) | 6.89 | % | 8.05 | % | 5.79 | % | ||||||
Impact of excluding average goodwill and other intangibles and amortization | 3.09 | % | 3.78 | % | 2.83 | % | ||||||
Return on average tangible common equity (non-GAAP) | 9.98 | % | 11.83 | % | 8.62 | % | ||||||
Book value (GAAP) | $ | 27.33 | $ | 26.40 | $ | 27.24 | ||||||
Impact of excluding average goodwill and other intangibles and amortization | (7.02 | ) | (7.36 | ) | (6.96 | ) | ||||||
Tangible book value (non-GAAP) | $ | 20.31 | $ | 19.04 | $ | 20.28 | ||||||
Efficiency ratio (GAAP) | 75.16 | % | 67.55 | % | 78.36 | % | ||||||
Impact of exclusions | (1.91 | )% | (1.91 | )% | (2.19 | )% | ||||||
Efficiency ratio (non-GAAP) | 73.25 | % | 65.64 | % | 76.17 | % | ||||||
Average assets (GAAP) | $ | 16,864,235 | $ | 16,349,040 | $ | 16,683,041 | ||||||
Less: average goodwill and intangible assets | 522,675 | 521,972 | 523,086 | |||||||||
Average tangible assets (non-GAAP) | $ | 16,341,560 | $ | 15,827,068 | $ | 16,159,955 | ||||||
Average equity (GAAP) | $ | 2,040,275 | $ | 1,946,002 | $ | 1,988,302 | ||||||
Less: average goodwill and intangible assets | 522,675 | 521,972 | 523,086 | |||||||||
Average tangible equity (non-GAAP) | $ | 1,517,600 | $ | 1,424,030 | $ | 1,465,216 | ||||||
Average common equity (GAAP) | $ | 2,024,169 | $ | 1,931,063 | $ | 1,972,138 | ||||||
Less: average goodwill and intangible assets | 522,675 | 521,972 | 523,086 | |||||||||
Average tangible common equity (non-GAAP) | $ | 1,501,494 | $ | 1,409,091 | $ | 1,449,052 | ||||||
Net income (GAAP) | $ | 34,687 | $ | 38,333 | $ | 28,804 | ||||||
Amortization of intangibles, net of tax | 2,564 | 2,784 | 2,695 | |||||||||
Tangible net income (non-GAAP) | $ | 37,251 | $ | 41,117 | $ | 31,499 | ||||||
Total revenue (GAAP) | $ | 167,102 | $ | 184,144 | $ | 155,546 | ||||||
Net (gain)/loss on investment securities | (74 | ) | — | — | ||||||||
Other nonrecurring (income) loss | — | — | 10 | |||||||||
Total Revenue for efficiency calculation (non-GAAP) | $ | 167,028 | $ | 184,144 | $ | 155,556 | ||||||
Noninterest expense (GAAP) | $ | 125,591 | $ | 124,397 | $ | 121,895 | ||||||
Less: amortization of intangibles | 3,246 | 3,524 | 3,411 | |||||||||
Noninterest expense net of amortization (non-GAAP) | $ | 122,345 | $ | 120,873 | $ | 118,484 |
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability | Three Months Ended | |||||||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Net income (GAAP) | $ | 34,687 | $ | 28,804 | $ | 44,862 | $ | 41,716 | $ | 38,333 | ||||||||||
Adjustments | ||||||||||||||||||||
Plus: Acquisition-related expenses, net of tax | 564 | 56 | 458 | 2,457 | 4,803 | |||||||||||||||
Plus: Initial provision for acquired loans, net of tax | — | — | — | — | 3,166 | |||||||||||||||
Plus: | 1,021 | 4,083 | — | — | — | |||||||||||||||
Less: Gain on sale of equity investments, net of noncontrolling interest | — | (1,846 | ) | (438 | ) | (5,513 | ) | — | ||||||||||||
Core operating earnings, excluding certain items affecting comparability (non-GAAP) | $ | 36,272 | $ | 31,097 | $ | 44,882 | $ | 38,660 | $ | 46,302 | ||||||||||
Weighted average diluted shares | 74,979,501 | 74,793,557 | 74,765,515 | 74,699,810 | 74,390,614 | |||||||||||||||
Diluted EPS (GAAP) | $ | 0.46 | $ | 0.39 | $ | 0.60 | $ | 0.56 | $ | 0.52 | ||||||||||
Diluted EPS, excluding certain items affecting comparability (non-GAAP) | $ | 0.48 | $ | 0.42 | $ | 0.60 | $ | 0.52 | $ | 0.62 | ||||||||||
Average assets | $ | 16,864,235 | $ | 16,683,041 | $ | 16,762,859 | $ | 16,826,965 | $ | 16,349,040 | ||||||||||
Average tangible equity | $ | 1,517,600 | $ | 1,465,216 | 1,460,024 | $ | 1,447,955 | $ | 1,424,030 | |||||||||||
Average common tangible equity | $ | 1,501,494 | $ | 1,449,052 | $ | 1,443,453 | $ | 1,432,506 | $ | 1,409,091 | ||||||||||
Return on average assets, excluding certain items affecting comparability (non-GAAP) | 0.87 | % | 0.74 | % | 1.06 | % | 0.92 | % | 1.15 | % | ||||||||||
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.29 | % | 9.15 | % | 12.97 | % | 11.50 | % | 13.98 | % | ||||||||||
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.40 | % | 9.25 | % | 13.13 | % | 11.62 | % | 14.13 | % | ||||||||||
Efficiency ratio, excluding certain items affecting comparability (non-GAAP) | 74.84 | % | 78.33 | % | 67.76 | % | 67.32 | % | 64.32 | % |
Source:
2024 GlobeNewswire, Inc., source