FirstSun Capital Bancorp Reports Fourth Quarter And Full Year 2022 Results

Fourth Quarter 2022 Highlights:

  • Net income of $24.6 million, $0.96 per diluted share
  • Net interest margin of 4.45%
  • Return on average assets of 1.38%
  • Return on average equity of 12.89%
  • Loan growth of 25.6% annualized
  • 20.3% fee revenue to total revenue

FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $24.6 million for the fourth quarter of 2022 compared to net income of $8.8 million for the fourth quarter of 2021. Earnings per diluted share was $0.96 for the fourth quarter of 2022 compared to $0.47 for the fourth quarter of 2021. Earnings for the fourth quarter of 2021 were impacted by $0.9 million of merger costs, net of tax, or $0.05 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “We are very pleased with our strong results this quarter. Our net interest margin expanded again this quarter, loan growth was strong and overall credit quality remains stable. Our strong returns this quarter highlight our favorable balance sheet positioning and overall asset sensitivity. While this macro rate environment will most likely subside in the near future amidst changing economic conditions, we believe the strength of the Southwest and Mountain West markets that we operate in and our diversified business model will position us well for success in the future. In 2022, we delivered record earnings, we expanded our Texas presence with the acquisition of the Pioneer Bancshares business and we continued to grow our customer relationships. We are very grateful to our teams for all their hard work and commitment to our customers and the business this year.”

Fourth Quarter 2022 Results

Net income totaled $24.6 million, or $0.96 per diluted share, during the fourth quarter of 2022, compared to $26.5 million, or $1.04 per diluted share, during the prior quarter. The return on average assets was 1.38% in the fourth quarter of 2022, compared to 1.52% in the prior quarter, and the return on average equity was 12.89% in the fourth quarter of 2022, compared to 14.50% in the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $73.3 million during the fourth quarter of 2022, an increase of $4.8 million compared to the prior quarter. Our net interest margin increased 19 basis points to 4.45% compared to the prior quarter. Results in the fourth quarter of 2022, compared to the prior quarter, were driven by an increase of 58 basis points in yield on earning assets, partially offset by an increase of 39 basis points in the cost of interest-bearing liabilities.

Average loans increased by $0.3 billion in the fourth quarter of 2022, compared to the prior quarter. Loan yield increased by 51 basis points to 5.46% in the fourth quarter of 2022, compared to the prior quarter, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average deposits decreased $0.2 billion in the fourth quarter of 2022, compared to the prior quarter. Total cost of deposits increased by 32 basis points to 0.65% in the fourth quarter of 2022, compared to the prior quarter, primarily due to increased pricing on our deposit products as a result of the rising interest rate environment. Average FHLB borrowings increased $0.3 billion in the fourth quarter of 2022, compared to the prior quarter. The cost of FHLB borrowings increased by 190 basis points to 3.80% in the fourth quarter of 2022, compared to the prior quarter, primarily due to the rising interest rate environment.

Asset Quality and Provision for Loan Losses

The provision for loan losses totaled $5.6 million during the fourth quarter of 2022, an increase of $1.9 million compared to the prior quarter, primarily due to loan growth and macroeconomic factors.

Net charge-offs (recoveries) during the fourth quarter of 2022 were $(0.6) million, or a ratio of net charge-offs (recoveries) to average loans of (0.04)% annualized, compared to net charge-offs of $0.1 million, or a ratio of net charge-offs (recoveries) to average loans of 0.01% annualized, in the prior quarter. The allowance for loan losses as a percentage of total loans was 1.12% at December 31, 2022, compared to 1.07% at September 30, 2022. The ratio of nonperforming assets to total assets was 0.64% at December 31, 2022, compared to 0.68% at September 30, 2022.

Noninterest Income

Noninterest income totaled $18.6 million during the fourth quarter of 2022, a decrease of $6.3 million from the prior quarter. Mortgage banking income decreased $7.5 million during the fourth quarter of 2022, primarily due to an increase in the fair value of the mortgage servicing rights portfolio in the prior quarter as prepayments were forecasted to slow due to the rising interest rate environment, in addition to a decrease in net sale gains and fees from mortgage loan originations as the volume of mortgage loan sales decreased from the prior quarter. Total originations of mortgage loans held-for-sale decreased by $83.7 million, or 30.8%, in the fourth quarter of 2022 from the prior quarter. Other noninterest income increased $1.1 million during the fourth quarter of 2022, primarily due to an increase in loan syndication fees. Noninterest income as a percentage of total revenue totaled 20.3% in the fourth quarter of 2022, compared to 26.7% in the prior quarter.

Noninterest Expense

Noninterest expense totaled $55.4 million during the fourth quarter of 2022, a decrease of $0.1 million from the prior quarter, primarily due to decreases of $0.5 million in occupancy and equipment, as a result of our adoption of ASU 2016-02, Leases, and $0.6 million in other noninterest expenses, partially offset by an increase of $1.1 million in intangible asset amortization. The efficiency ratio for the fourth quarter was 60.33% compared to 59.45% in the prior quarter.

Tax Rate

The effective tax rate was 20.4% in the fourth quarter of 2022, compared to 22.3% in the prior quarter.

Loans

Total loans were $5.9 billion at December 31, 2022, compared to $5.6 billion at September 30, 2022, an increase of $355.1 million in the fourth quarter of 2022, or 25.6% on an annualized basis, resulting primarily from growth in commercial and industrial and residential real estate balances.

Deposits

Average deposits were $5.7 billion for the fourth quarter of 2022, compared to $5.8 billion for the prior quarter, a decrease of $154.0 million in the fourth quarter of 2022, or 10.5% on an annualized basis. Deposit trends reflect a decrease in customer average balances as consumer and business liquidity overall has declined slightly. Noninterest-bearing deposit accounts represented 31.6% of total deposits at December 31, 2022 and the loan-to-deposit ratio was 102.5% at December 31, 2022.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2022, our common equity tier 1 risk-based capital ratio was 9.94%, total risk-based capital ratio was 11.99% and tier 1 leverage ratio was 9.71%. Book value per common share was $31.08 at December 31, 2022, an increase of $0.94 from September 30, 2022. Tangible book value per common share, a non-GAAP financial measure, was $26.69 at December 31, 2022, an increase of $1.02 from September 30, 2022.

Full Year 2022 Results

Full Year Highlights:

  • Net income of $59.2 million, $2.48 per diluted share (excluding merger costs, $76.2 million, $3.20 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Return on average assets of 0.88% (excluding merger costs, 1.13%, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Return on average equity of 8.55% (excluding merger costs, 11.01%, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Completed merger with Pioneer Bancshares, Inc. (“Pioneer”), acquiring loans of $0.8 billion, total assets of $1.5 billion, and total deposits of $1.2 billion, net of purchase accounting adjustments
  • Loan growth, excluding acquired Pioneer loans and PPP loans, 28.4% annualized
  • 27.0% fee revenue to total revenue
  • Increase in net interest margin of 87 basis points to 3.87%

Net income totaled $59.2 million, or $2.48 per diluted share, in 2022, compared to $43.2 million, or $2.30 per diluted share, in 2021. Net income included merger costs, net of tax, of $17.0 million in 2022 and $2.6 million in 2021. The return on average assets was 0.88% in 2022, compared to 0.79% in 2021, and the return on average equity was 8.55% in 2022, compared to 8.37% in 2021. The negative impact in 2022 of merger costs, net of tax, to return on average assets was 0.25% and to return on average equity was 2.46%. The negative impact in 2021 of merger costs, net of tax, to return on average assets was 0.05% and to return on average equity was 0.50%.

Net Interest Income and Net Interest Margin

Net interest income totaled $241.6 million in 2022, an increase of $86.4 million compared to 2021. Our net interest margin increased 87 basis points to 3.87% in 2022, compared to 2021. Results in 2022, compared to the prior year, were driven by an increase of 100 basis points in yield on earning assets, partially offset by an increase of 13 basis points in the cost of interest-bearing liabilities.

Average loans increased by $1.4 billion in 2022, compared to 2021. Loan yield increased by 64 basis points to 4.75% in 2022, compared to 2021, primarily due to the rising interest rate environment and its impact on variable rate loans in the loan portfolio and higher yields on new originations. Average deposits increased $0.5 billion in 2022, compared to 2021. Total cost of deposits increased by 9 basis points to 0.35% in 2022, compared to 2021, primarily due to increased pricing on our deposit products as a result of the rising interest rate environment. Average FHLB borrowings increased $0.2 billion in 2022, compared to 2021. The cost of FHLB borrowings increased by 75 basis points to 2.89% in 2022, compared to 2021, primarily due to the rising interest rate environment.

Asset Quality and Provision for Loan Losses

The provision for loan losses totaled $18.1 million in 2022, an increase of $15.1 million compared to the prior year, primarily due to loan growth and macroeconomic factors. During the second quarter of 2022, $2.9 million of the provision for loan losses was related to certain non-impaired acquired loans marked at a premium valuation upon the closing of the Pioneer merger. The premium valuation on certain of the acquired loans was due to higher contractual interest rates compared to market interest rates upon the closing of the Pioneer merger. In total, we realized a net discount valuation on the entire acquired portfolio. Due to the premium on certain of the loans, a provision for loan losses was required; however, it was not due to credit deterioration since closing of the Pioneer merger.

Net charge-offs (recoveries) in 2022 were $(0.3) million, or a ratio of net charge-offs (recoveries) to average loans of (0.01)%, compared to net charge-offs of $3.2 million, or a ratio of net charge-offs (recoveries) to average loans of 0.09%, in 2021. The allowance for loan losses as a percentage of total loans was 1.12% at December 31, 2022, compared to 1.18% at December 31, 2021. The ratio of nonperforming assets to total assets was 0.64% at December 31, 2022, compared to 0.71% at December 31, 2021.

Noninterest Income

Noninterest income totaled $89.6 million during 2022, a decrease of $34.7 million from 2021. Mortgage banking income decreased $40.1 million in 2022, primarily due to a decrease in net sale gains and fees from mortgage loan originations as the volume of mortgage loan sales decreased from the prior year. Total originations of mortgage loans held-for-sale decreased by $0.7 billion, or 38.0%, in 2022 from the prior year. Service charges on deposits increased $5.7 million in 2022, due to an increase in average deposits in 2022, as compared to 2021. Noninterest income as a percentage of total revenue totaled 27.0% in 2022, compared to 44.5% in 2021.

Noninterest Expense

Noninterest expense totaled $239.1 million in 2022, an increase of $14.5 million from 2021. Merger costs increased $15.7 million in 2022, as compared to 2021, due to the completion of the Pioneer merger in the second quarter of 2022. The decrease in salaries and benefits of $17.6 million in 2022, as compared to 2021, was partially offset by increases of $3.9 million in occupancy and equipment, $2.8 million in amortization of intangible assets, and $9.6 million in other noninterest expenses. The efficiency ratio for 2022 was 72.20% compared to 80.38% in 2021. The negative impact of merger expenses to the efficiency ratio was 5.66% in 2022 and 1.11% in 2021.

Tax Rate

The effective tax rate was 20.0% in 2022, compared to 16.7% in 2021.

Loans

Total loans were $5.9 billion at December 31, 2022 compared to $4.0 billion at December 31, 2021. Excluding $0.8 billion in acquired Pioneer loans as of April 1, 2022 and PPP loan balances, loans grew $1.1 billion in 2022, or 28.4% from 2021, resulting primarily from growth in commercial and industrial balances. See the “Non-GAAP Financial Measures and Reconciliations” below.

Deposits

Average deposits were $5.6 billion for the year ending December 31, 2022, compared to $4.6 billion for the prior year. Average deposits, excluding $1.2 billion in acquired Pioneer deposits as of April 1, 2022, decreased $0.2 billion in 2022, or 4.8% compared to 2021. See the “Non-GAAP Financial Measures and Reconciliations” below. Average deposits, excluding impact from acquired Pioneer deposits, reflect a decrease in customer average balances as consumer and business liquidity overall has declined slightly. Noninterest-bearing deposit accounts represented 31.6% of total deposits at December 31, 2022 and the loan-to-deposit ratio was 102.5% at December 31, 2022.

Non-GAAP Financial Measures

This press release contains financial information and performance measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this press release:

  • Tangible stockholders’ equity
  • Tangible assets
  • Tangible stockholders’ equity to tangible assets
  • Tangible book value per common share
  • Net income excluding merger costs
  • Return on average total assets excluding merger costs
  • Return on average stockholders’ equity excluding merger costs
  • Efficiency ratio excluding merger related expenses
  • Diluted earnings per share excluding merger related costs
  • Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis
  • Total loan growth, excluding acquired Pioneer loans as of April 1, 2022, and PPP loans
  • Total average deposit growth, excluding acquired Pioneer deposits as of April 1, 2022

See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $7.4 billion as of December 31, 2022.

First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of FirstSun. Words such as “anticipates,” “believes,” “estimates,” “expects,” “focused,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could,” “look forward” and other similar expressions are intended to identify these forward-looking statements. Forward-looking statements are not based on historical facts but instead represent management’s current expectations and assumptions regarding FirstSun’s business, the economy and other future conditions. Such statements involve inherent uncertainties, risks and changes in circumstances that are difficult to predict. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. As such, FirstSun’s actual results may differ materially from those contemplated by forward-looking statements. While there can be no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, without limitation, the following:

  • the possibility that the anticipated benefits of the merger with Pioneer, which closed on April 1, 2022, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where FirstSun does business or as a result of other unexpected factors or events;
  • the COVID-19 pandemic and its continuing effects on the economic and business environments in which we operate;
  • potential fluctuations or unanticipated changes in the interest rate environment, including interest rate changes made by the Federal Reserve, the discontinuation of LIBOR as an interest rate benchmark, and cash flow reassessments, may reduce net interest margin and/or the volumes and values of loans made or held as well as the value of other financial assets;
  • the inability to sustain revenue and earnings growth;
  • the inability to efficiently manage operating expenses;
  • the impact of competition with other financial institutions, including pricing pressures and the resulting impact on FirstSun’s results, including as a result of compression to net interest margin;
  • deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;
  • changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
  • adverse changes in asset quality and credit risk;
  • the inability to maintain or grow deposits;
  • the inability to manage strategic initiatives and/or organizational changes;
  • cyber-security risks;
  • FirstSun’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks;
  • the inability to implement technology system enhancements;
  • failures of internal controls and other risk management systems;
  • failures of third-party providers;
  • losses related to fraud, theft, misappropriation or violence; and
  • the potential effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as inflation and recessions, epidemics and pandemics, war or terrorist activities, disruptions in our customers’ supply chains, disruptions in transportation, essential utility outages or trade disputes and related tariffs.

Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in FirstSun’s Annual Report on Form 10-K for the year ended December 31, 2021, and other documents subsequently filed by FirstSun with the United States Securities and Exchange Commission (“SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, FirstSun undertakes no obligation to revise or update any forward-looking statements.

Summary Data:

 

 

 

As of and for the quarter ended

 

As of and for the year ended

($ in thousands, except per share amounts)

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

December 31,

2022

 

December 31,

2021

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

73,276

 

 

$

68,486

 

 

$

40,451

 

 

$

241,632

 

 

$

155,233

 

Provision for loan losses

 

 

5,600

 

 

 

3,750

 

 

 

1,250

 

 

 

18,050

 

 

 

3,000

 

Noninterest income

 

 

18,618

 

 

 

24,953

 

 

 

29,396

 

 

 

89,566

 

 

 

124,244

 

Noninterest expense

 

 

55,443

 

 

 

55,548

 

 

 

58,261

 

 

 

239,126

 

 

 

224,635

 

Income before income taxes

 

 

30,851

 

 

 

34,141

 

 

 

10,336

 

 

 

74,022

 

 

 

51,842

 

Provision for income taxes

 

 

6,281

 

 

 

7,628

 

 

 

1,519

 

 

 

14,840

 

 

 

8,678

 

Net income

 

 

24,570

 

 

 

26,513

 

 

 

8,817

 

 

 

59,182

 

 

 

43,164

 

Net income, excluding merger costs (1)

 

 

24,570

 

 

 

26,513

 

 

 

9,736

 

 

 

76,213

 

 

 

45,740

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.96

 

 

$

1.04

 

 

$

0.47

 

 

$

2.48

 

 

$

2.30

 

Diluted earnings per share, excluding merger costs (1)

 

$

0.96

 

 

$

1.04

 

 

$

0.52

 

 

$

3.20

 

 

$

2.44

 

Return on average assets

 

 

1.38

%

 

 

1.52

%

 

 

0.62

%

 

 

0.88

%

 

 

0.79

%

Return on average assets, excluding merger costs (1)

 

 

1.38

%

 

 

1.52

%

 

 

0.68

%

 

 

1.13

%

 

 

0.84

%

Return on average stockholders' equity

 

 

12.89

%

 

 

14.50

%

 

 

6.69

%

 

 

8.55

%

 

 

8.37

%

Return on average stockholders’ equity, excluding merger costs (1)

 

 

12.89

%

 

 

14.50

%

 

 

7.38

%

 

 

11.01

%

 

 

8.87

%

Net interest margin

 

 

4.45

%

 

 

4.26

%

 

 

2.99

%

 

 

3.87

%

 

 

3.00

%

Net interest margin (FTE basis) (1)

 

 

4.52

%

 

 

4.31

%

 

 

3.09

%

 

 

3.95

%

 

 

3.11

%

Efficiency ratio

 

 

60.33

%

 

 

59.45

%

 

 

83.41

%

 

 

72.20

%

 

 

80.38

%

Efficiency ratio, excluding merger related expenses (1)

 

 

60.33

%

 

 

59.45

%

 

 

81.84

%

 

 

66.54

%

 

 

79.27

%

Fee revenue to total revenue

 

 

20.26

%

 

 

26.71

%

 

 

42.09

%

 

 

27.04

%

 

 

44.46

%

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,430,322

 

 

$

7,052,917

 

 

$

5,666,814

 

 

$

7,430,322

 

 

$

5,666,814

 

Total loans held-for-sale

 

 

57,323

 

 

 

67,535

 

 

 

103,939

 

 

 

57,323

 

 

 

103,939

 

Total loans held-for-investment

 

 

5,911,832

 

 

 

5,556,686

 

 

 

4,037,123

 

 

 

5,911,832

 

 

 

4,037,123

 

Total deposits

 

 

5,765,062

 

 

 

5,760,418

 

 

 

4,854,948

 

 

 

5,765,062

 

 

 

4,854,948

 

Total stockholders' equity

 

 

774,536

 

 

 

750,653

 

 

 

524,038

 

 

 

774,536

 

 

 

524,038

 

Period end loan-to-deposit ratio

 

 

102.55

%

 

 

96.46

%

 

 

83.15

%

 

 

102.55

%

 

 

83.15

%

Book value per common share

 

$

31.08

 

 

$

30.14

 

 

$

28.56

 

 

$

31.08

 

 

$

28.56

 

Tangible book value per common share (1)

 

$

26.69

 

 

$

25.67

 

 

$

26.31

 

 

$

26.69

 

 

$

26.31

 

(1)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

Condensed Consolidated Statements of Income (Unaudited):

 

 

As of and for the quarter ended

 

As of and for the year ended

($ in thousands, except per share amounts)

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

December 31,

2022

 

December 31,

2021

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

85,165

 

$

73,763

 

$

43,578

 

$

266,817

 

$

169,354

Total interest expense

 

 

11,889

 

 

 

5,277

 

 

 

3,127

 

 

 

25,185

 

 

 

14,121

 

Net interest income

 

 

73,276

 

 

 

68,486

 

 

 

40,451

 

 

 

241,632

 

 

 

155,233

 

Provision for loan losses

 

 

5,600

 

 

 

3,750

 

 

 

1,250

 

 

 

18,050

 

 

 

3,000

 

Net interest income after provision for loan losses

 

 

67,676

 

 

 

64,736

 

 

 

39,201

 

 

 

223,582

 

 

 

152,233

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

5,100

 

 

 

4,807

 

 

 

3,845

 

 

 

18,211

 

 

 

12,504

 

Credit and debit card fees

 

 

3,003

 

 

 

3,103

 

 

 

2,456

 

 

 

11,511

 

 

 

9,596

 

Trust and investment advisory fees

 

 

1,398

 

 

 

1,552

 

 

 

1,924

 

 

 

6,806

 

 

 

7,795

 

Mortgage banking income, net

 

 

6,268

 

 

 

13,785

 

 

 

18,266

 

 

 

46,285

 

 

 

86,410

 

Other noninterest income

 

 

2,849

 

 

 

1,706

 

 

 

2,905

 

 

 

6,753

 

 

 

7,939

 

Total noninterest income

 

 

18,618

 

 

 

24,953

 

 

 

29,396

 

 

 

89,566

 

 

 

124,244

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

32,378

 

 

 

32,508

 

 

 

38,797

 

 

 

134,359

 

 

 

151,926

 

Occupancy and equipment

 

 

7,707

 

 

 

8,216

 

 

 

6,698

 

 

 

30,509

 

 

 

26,565

 

Amortization of intangible assets

 

 

2,019

 

 

 

935

 

 

 

355

 

 

 

4,216

 

 

 

1,417

 

Merger related expenses

 

 

 

 

 

 

 

 

1,101

 

 

 

18,751

 

 

 

3,085

 

Other noninterest expenses

 

 

13,339

 

 

 

13,889

 

 

 

11,310

 

 

 

51,291

 

 

 

41,642

 

Total noninterest expense

 

 

55,443

 

 

 

55,548

 

 

 

58,261

 

 

 

239,126

 

 

 

224,635

 

Income before income taxes

 

 

30,851

 

 

 

34,141

 

 

 

10,336

 

 

 

74,022

 

 

 

51,842

 

Provision for income taxes

 

 

6,281

 

 

 

7,628

 

 

 

1,519

 

 

 

14,840

 

 

 

8,678

 

Net income

 

$

24,570

 

 

$

26,513

 

 

$

8,817

 

 

$

59,182

 

 

$

43,164

 

Earnings per share - basic

 

$

0.99

 

 

$

1.07

 

 

$

0.48

 

 

$

2.55

 

 

$

2.36

 

Earnings per share - diluted

 

$

0.96

 

 

$

1.04

 

 

$

0.47

 

 

$

2.48

 

 

$

2.30

 

 

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

343,526

 

 

$

325,039

 

 

$

668,462

 

Securities available-for-sale, at fair value

 

 

536,973

 

 

 

551,165

 

 

 

572,501

 

Securities held-to-maturity

 

 

38,901

 

 

 

39,148

 

 

 

18,007

 

Loans held-for-sale, at fair value

 

 

57,323

 

 

 

67,535

 

 

 

103,939

 

Loans

 

 

5,911,832

 

 

 

5,556,686

 

 

 

4,037,123

 

Allowance for loan losses

 

 

(65,917

)

 

 

(59,678

)

 

 

(47,547

)

Loans, net

 

 

5,845,915

 

 

 

5,497,008

 

 

 

3,989,576

 

 

 

 

 

 

 

 

Mortgage servicing rights, at fair value

 

 

74,097

 

 

 

73,850

 

 

 

47,392

 

Premises and equipment, net

 

 

87,079

 

 

 

88,490

 

 

 

53,147

 

Other real estate owned and foreclosed assets, net

 

 

6,358

 

 

 

5,391

 

 

 

5,487

 

Goodwill

 

 

93,483

 

 

 

93,483

 

 

 

33,050

 

Intangible assets, net

 

 

15,806

 

 

 

17,825

 

 

 

8,250

 

All other assets

 

 

330,861

 

 

 

293,983

 

 

 

167,003

 

Total assets

 

$

7,430,322

 

 

$

7,052,917

 

 

$

5,666,814

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest-bearing demand deposit accounts

 

$

1,820,490

 

 

$

1,946,215

 

 

$

1,566,113

 

Interest-bearing deposit accounts:

 

 

 

 

 

 

Interest-bearing demand accounts

 

 

212,357

 

 

 

160,082

 

 

 

187,712

 

Savings accounts and money market accounts

 

 

2,759,969

 

 

 

3,008,433

 

 

 

2,757,882

 

NOW accounts

 

 

50,224

 

 

 

46,128

 

 

 

19,496

 

Certificate of deposit accounts

 

 

922,022

 

 

 

599,560

 

 

 

323,745

 

Total deposits

 

 

5,765,062

 

 

 

5,760,418

 

 

 

4,854,948

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

 

36,721

 

 

 

51,256

 

 

 

92,093

 

Federal Home Loan Bank advances

 

 

643,885

 

 

 

310,872

 

 

 

40,000

 

Other borrowings

 

 

80,235

 

 

 

80,097

 

 

 

69,458

 

Other liabilities

 

 

129,883

 

 

 

99,621

 

 

 

86,277

 

Total liabilities

 

 

6,655,786

 

 

 

6,302,264

 

 

 

5,142,776

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

460,720

 

 

 

460,530

 

 

 

261,905

 

Treasury stock

 

 

 

 

 

 

 

 

(38,148

)

Retained earnings

 

 

357,797

 

 

 

333,227

 

 

 

298,615

 

Accumulated other comprehensive (loss) income, net

 

 

(43,983

)

 

 

(43,106

)

 

 

1,664

 

Total stockholders' equity

 

 

774,536

 

 

 

750,653

 

 

 

524,038

 

Total liabilities and stockholders' equity

 

$

7,430,322

 

 

$

7,052,917

 

 

$

5,666,814

 

 

Share Data as of and for the periods ended:

 

 

As of and for the quarter ended

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

24,907,643

 

 

24,877,607

 

 

18,322,194

Weighted average common shares outstanding, diluted

 

25,525,026

 

 

 

25,494,315

 

 

 

18,836,918

 

Period end common shares outstanding

 

24,920,984

 

 

 

24,906,032

 

 

 

18,346,288

 

Book value per common share

$

31.08

 

 

$

30.14

 

 

$

28.56

 

Tangible book value per common share (1)

$

26.69

 

 

$

25.67

 

 

$

26.31

 

 

Consolidated Capital Ratios as of:

 

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

 

 

 

 

 

Stockholders' equity to total assets

10.42

%

 

10.64

%

 

9.25

%

Tangible equity to tangible assets (1)

9.09

%

 

9.21

%

 

8.58

%

Tier 1 leverage ratio

9.71

%

 

9.55

%

 

8.24

%

Common equity tier 1 risk-based capital ratio

9.94

%

 

9.99

%

 

9.70

%

Tier 1 risk-based capital ratio

9.94

%

 

9.99

%

 

9.70

%

Total risk-based capital ratio

11.99

%

 

12.06

%

 

11.76

%

(1)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

Summary of Net Interest Margin:

 

 

 

For the quarter ended

December 31, 2022

 

For the quarter ended

September 30, 2022

 

For the quarter ended

December 31, 2021

(In thousands)

 

Average

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Balance

 

Interest

 

Average

Yield/Rate

Interest Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held-for-sale

 

$

51,835

 

$

606

 

 

4.68

%

 

$

56,636

 

$

743

 

 

5.25

%

 

$

97,934

 

$

793

 

 

3.24

%

Loans held-for-investment (1)

 

 

5,759,436

 

 

 

78,669

 

 

5.46

%

 

 

5,456,210

 

 

 

67,527

 

 

4.95

%

 

 

3,838,871

 

 

 

39,830

 

 

4.15

%

Investment securities

 

 

573,592

 

 

 

3,933

 

 

2.74

%

 

 

613,325

 

 

 

3,644

 

 

2.38

%

 

 

591,289

 

 

 

2,333

 

 

1.58

%

Interest-bearing cash and other assets

 

 

204,964

 

 

 

1,957

 

 

3.82

%

 

 

308,482

 

 

 

1,849

 

 

2.40

%

 

 

886,472

 

 

 

622

 

 

0.28

%

Total earning assets

 

 

6,589,827

 

 

 

85,165

 

 

5.17

%

 

 

6,434,653

 

 

 

73,763

 

 

4.59

%

 

 

5,414,566

 

 

 

43,578

 

 

3.22

%

Other assets

 

 

553,870

 

 

 

 

 

 

 

519,663

 

 

 

 

 

 

 

291,934

 

 

 

 

 

Total assets

 

$

7,143,697

 

 

 

 

 

 

$

6,954,316

 

 

 

 

 

 

$

5,706,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

$

213,491

 

 

$

927

 

 

1.74

%

 

$

202,290

 

 

$

495

 

 

0.98

%

 

$

203,416

 

 

$

120

 

 

0.24

%

Savings deposits

 

 

492,837

 

 

 

348

 

 

0.28

%

 

 

506,548

 

 

 

227

 

 

0.18

%

 

 

458,657

 

 

 

97

 

 

0.08

%

Money market deposits

 

 

2,412,289

 

 

 

3,126

 

 

0.52

%

 

 

2,617,452

 

 

 

1,632

 

 

0.25

%

 

 

2,282,755

 

 

 

987

 

 

0.17

%

Certificates of deposits

 

 

647,819

 

 

 

1,733

 

 

1.07

%

 

 

593,479

 

 

 

920

 

 

0.62

%

 

 

326,440

 

 

 

609

 

 

0.75

%

Total deposits

 

 

3,766,436

 

 

 

6,134

 

 

0.65

%

 

 

3,919,769

 

 

 

3,274

 

 

0.33

%

 

 

3,271,268

 

 

 

1,813

 

 

0.22

%

Repurchase agreements

 

 

38,795

 

 

 

45

 

 

0.46

%

 

 

51,264

 

 

 

51

 

 

0.40

%

 

 

109,319

 

 

 

10

 

 

0.04

%

Total deposits and repurchase agreements

 

 

3,805,231

 

 

 

6,179

 

 

0.65

%

 

 

3,971,033

 

 

 

3,325

 

 

0.33

%

 

 

3,380,587

 

 

 

1,823

 

 

0.22

%

FHLB borrowings

 

 

471,880

 

 

 

4,477

 

 

3.80

%

 

 

160,310

 

 

 

761

 

 

1.90

%

 

 

40,000

 

 

 

151

 

 

1.51

%

Other long-term borrowings

 

 

80,162

 

 

 

1,233

 

 

6.15

%

 

 

80,031

 

 

 

1,191

 

 

5.95

%

 

 

69,306

 

 

 

1,153

 

 

6.65

%

Total interest-bearing liabilities

 

 

4,357,273

 

 

 

11,889

 

 

1.09

%

 

 

4,211,374

 

 

 

5,277

 

 

0.50

%

 

 

3,489,893

 

 

 

3,127

 

 

0.36

%

Noninterest-bearing deposits

 

 

1,923,401

 

 

 

 

 

 

 

1,924,055

 

 

 

 

 

 

 

1,617,278

 

 

 

 

 

Other liabilities

 

 

100,671

 

 

 

 

 

 

 

87,338

 

 

 

 

 

 

 

71,862

 

 

 

 

 

Stockholders' equity

 

 

762,352

 

 

 

 

 

 

 

731,549

 

 

 

 

 

 

 

527,467

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

7,143,697

 

 

 

 

 

 

$

6,954,316

 

 

 

 

 

 

$

5,706,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

73,276

 

$

68,486

 

 

$

40,451

 

Net interest spread

 

 

 

 

4.08

%

 

 

 

 

 

 

4.09

%

 

 

 

 

 

 

2.86

%

 

 

Net interest margin

 

 

 

 

4.45

%

 

 

 

 

 

 

4.26

%

 

 

 

 

 

 

2.99

%

 

 

Net interest margin (on a FTE basis) (2)

 

 

 

 

4.52

%

 

 

 

 

 

 

4.31

%

 

 

 

 

 

 

3.09

%

 

 

(1)

 

Includes nonaccrual loans.

(2)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

 

For the year ended

 

 

December 31, 2022

 

December 31, 2021

(In thousands)

 

Average

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Balance

 

Interest

 

Average

Yield/Rate

Interest Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held-for-sale

 

$

59,915

 

$

3,313

 

 

5.53

%

 

$

125,808

 

$

4,051

 

 

3.22

%

Loans held-for-investment (1)

 

 

5,156,297

 

 

 

244,675

 

 

4.75

%

 

 

3,780,650

 

 

 

155,252

 

 

4.11

%

Investment securities

 

 

605,119

 

 

 

13,185

 

 

2.18

%

 

 

531,803

 

 

 

7,979

 

 

1.50

%

Interest-bearing cash and other assets

 

 

422,890

 

 

 

5,644

 

 

1.33

%

 

 

742,389

 

 

 

2,072

 

 

0.28

%

Total earning assets

 

 

6,244,221

 

 

 

266,817

 

 

4.27

%

 

 

5,180,650

 

 

 

169,354

 

 

3.27

%

Other assets

 

 

494,065

 

 

 

 

 

 

 

288,617

 

 

 

 

 

Total assets

 

$

6,738,286

 

 

 

 

 

 

$

5,469,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

$

214,516

 

 

$

1,775

 

 

0.83

%

 

$

254,679

 

 

$

756

 

 

0.30

%

Savings deposits

 

 

496,131

 

 

 

799

 

 

0.16

%

 

 

455,451

 

 

 

460

 

 

0.10

%

Money market deposits

 

 

2,528,308

 

 

 

6,770

 

 

0.27

%

 

 

2,208,498

 

 

 

4,292

 

 

0.19

%

Certificates of deposits

 

 

536,325

 

 

 

3,810

 

 

0.71

%

 

 

344,224

 

 

 

3,036

 

 

0.88

%

Total deposits

 

 

3,775,280

 

 

 

13,154

 

 

0.35

%

 

 

3,262,852

 

 

 

8,544

 

 

0.26

%

Repurchase agreements

 

 

54,335

 

 

 

119

 

 

0.22

%

 

 

125,867

 

 

 

59

 

 

0.05

%

Total deposits and repurchase agreements

 

 

3,829,615

 

 

 

13,273

 

 

0.35

%

 

 

3,388,719

 

 

 

8,603

 

 

0.25

%

FHLB borrowings

 

 

215,166

 

 

 

6,221

 

 

2.89

%

 

 

42,527

 

 

 

909

 

 

2.14

%

Other long-term borrowings

 

 

82,111

 

 

 

5,691

 

 

6.93

%

 

 

68,918

 

 

 

4,609

 

 

6.69

%

Total interest-bearing liabilities

 

 

4,126,892

 

 

 

25,185

 

 

0.61

%

 

 

3,500,164

 

 

 

14,121

 

 

0.40

%

Noninterest-bearing deposits

 

 

1,835,578

 

 

 

 

 

 

 

1,376,968

 

 

 

 

 

Other liabilities

 

 

83,292

 

 

 

 

 

 

 

76,362

 

 

 

 

 

Stockholders' equity

 

 

692,524

 

 

 

 

 

 

 

515,773

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

6,738,286

 

 

 

 

 

 

$

5,469,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

241,632

 

 

 

 

 

 

$

155,233

 

 

 

Net interest spread

 

 

 

 

3.66

%

 

 

 

 

 

 

2.87

%

 

 

Net interest margin

 

 

 

 

3.87

%

 

 

 

 

 

 

3.00

%

 

 

Net interest margin (on a FTE basis) (2)

 

 

 

 

3.95

%

 

 

 

 

 

 

3.11

%

 

 

(1)

 

Includes nonaccrual loans.

(2)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

Loan Portfolio

 

($ in thousands)

 

December 31,

2022

 

September 30,

2022

 

December 31,

2022

vs

September 30,

2022

% change

 

December 31,

2021

 

December 31,

2022

vs

December 31,

2021

% change

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

3,019,610

 

$

2,738,068

 

10.3

%

 

$

2,407,888

 

25.4

%

Commercial real estate

 

 

1,743,635

 

 

 

1,772,315

 

 

(1.6

)%

 

 

1,174,242

 

 

48.5

%

Residential real estate

 

 

1,105,999

 

 

 

1,003,157

 

 

10.3

%

 

 

437,017

 

 

153.1

%

Consumer

 

 

42,588

 

 

 

43,146

 

 

(1.3

)%

 

 

17,976

 

 

136.9

%

Total loans held-for-investment

 

$

5,911,832

 

 

$

5,556,686

 

 

6.4

%

 

$

4,037,123

 

 

46.4

%

 

Asset Quality:

 

 

 

As of and for the quarter ended

 

As of and for the year ended

($ in thousands)

 

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

December 31,

2022

 

December 31,

2021

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

(639

)

 

$

149

 

 

$

1,571

 

 

$

(320

)

 

$

3,219

 

Allowance for loan losses

 

$

65,917

 

 

$

59,678

 

 

$

47,547

 

 

$

65,917

 

 

$

47,547

 

Nonperforming loans, including nonaccrual loans, accrual TDR’s, and accrual loans greater than 90 days past due

 

$

40,910

 

 

$

42,460

 

 

$

34,838

 

 

$

40,910

 

 

$

34,838

 

Nonperforming assets

 

$

47,268

 

 

$

47,851

 

 

$

40,325

 

 

$

47,268

 

 

$

40,325

 

Ratio of net charge-offs (recoveries) to average loans outstanding

 

 

(0.04

)%

 

 

0.01

%

 

 

0.16

%

 

 

(0.01

)%

 

 

0.09

%

Allowance for loan losses to total loans outstanding

 

 

1.12

%

 

 

1.07

%

 

 

1.18

%

 

 

1.12

%

 

 

1.18

%

Allowance for loan losses to total nonperforming loans

 

 

161.13

%

 

 

140.55

%

 

 

136.48

%

 

 

161.13

%

 

 

136.48

%

Nonperforming loans to total loans

 

 

0.69

%

 

 

0.76

%

 

 

0.86

%

 

 

0.69

%

 

 

0.86

%

Nonperforming assets to total assets

 

 

0.64

%

 

 

0.68

%

 

 

0.71

%

 

 

0.64

%

 

 

0.71

%

 

Non-GAAP Financial Measures and Reconciliations:

 

 

As of and for the quarter ended

 

As of and for the year ended

($ in thousands, except share and per share amounts)

December 31,

2022

 

September 30,

2022

 

December 31,

2021

 

December 31,

2022

 

December 31,

2021

Tangible stockholders’ equity:

Total stockholders' equity (GAAP)

$

774,536

 

 

$

750,653

 

 

$

524,038

 

 

$

774,536

 

 

$

524,038

 

Less: Goodwill and other intangible assets

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(33,050

)

 

 

(93,483

)

 

 

(33,050

)

Other intangible assets

 

(15,806

)

 

 

(17,825

)

 

 

(8,250

)

 

 

(15,806

)

 

 

(8,250

)

Total tangible stockholders' equity (non-GAAP)

$

665,247

 

 

$

639,345

 

 

$

482,738

 

 

$

665,247

 

 

$

482,738

 

Tangible assets:

Total assets (GAAP)

$

7,430,322

 

 

$

7,052,917

 

 

$

5,666,814

 

 

$

7,430,322

 

 

$

5,666,814

 

Less: Goodwill and other intangible assets

 

 

 

 

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(33,050

)

 

 

(93,483

)

 

 

(33,050

)

Other intangible assets

 

(15,806

)

 

 

(17,825

)

 

 

(8,250

)

 

 

(15,806

)

 

 

(8,250

)

Total tangible assets (non-GAAP)

$

7,321,033

 

 

$

6,941,609

 

 

$

5,625,514

 

 

$

7,321,033

 

 

$

5,625,514

 

Tangible stockholders’ equity to tangible assets:

Common equity to total assets (GAAP)

 

10.42

%

 

 

10.64

%

 

 

9.25

%

 

 

10.42

%

 

 

9.25

%

Less: Impact of goodwill and other intangible assets

 

(1.33

)%

 

 

(1.43

)%

 

 

(0.67

)%

 

 

(1.33

)%

 

 

(0.67

)%

Tangible common equity to tangible assets (non-GAAP)

 

9.09

%

 

 

9.21

%

 

 

8.58

%

 

 

9.09

%

 

 

8.58

%

Tangible book value per common share:

Stockholders' equity (GAAP)

$

774,536

 

 

$

750,653

 

 

$

524,038

 

 

$

774,536

 

 

$

524,038

 

Tangible stockholders' equity (non-GAAP)

$

665,247

 

 

$

639,345

 

 

$

482,738

 

 

$

665,247

 

 

$

482,738

 

Total common shares outstanding

 

24,920,984

 

 

 

24,906,032

 

 

 

18,346,288

 

 

 

24,920,984

 

 

 

18,346,288

 

Book value per common share (GAAP)

$

31.08

 

 

$

30.14

 

 

$

28.56

 

 

$

31.08

 

 

$

28.56

 

Tangible book value per common share (non-GAAP)

$

26.69

 

 

$

25.67

 

 

$

26.31

 

 

$

26.69

 

 

$

26.31

 

Net income excluding merger costs:

Net income (GAAP)

$

24,570

 

 

$

26,513

 

 

$

8,817

 

 

$

59,182

 

 

$

43,164

 

Add: Merger costs

 

 

 

 

 

 

 

 

 

Merger related expenses

 

 

 

 

 

 

 

1,101

 

 

 

18,751

 

 

 

3,085

 

Income tax effect on merger related expenses

 

 

 

 

 

 

 

(182

)

 

 

(4,083

)

 

 

(509

)

Provision for loan loss on Pioneer loans marked at a premium

 

 

 

 

 

 

 

 

 

 

2,884

 

 

 

 

Income tax effect on provision for loan loss on Pioneer loans marked at a premium

 

 

 

 

 

 

 

 

 

 

(521

)

 

 

 

Total merger costs

 

 

 

 

 

 

 

919

 

 

 

17,031

 

 

 

2,576

 

Net income excluding merger costs (non-GAAP)

$

24,570

 

 

$

26,513

 

 

$

9,736

 

 

$

76,213

 

 

$

45,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets excluding merger costs:

Return on average total assets (ROAA) (GAAP)

 

1.38

%

 

 

1.52

%

 

 

0.62

%

 

 

0.88

%

 

 

0.79

%

Add: Impact of merger costs, net of tax

 

%

 

 

%

 

 

0.06

%

 

 

0.25

%

 

 

0.05

%

ROAA excluding merger costs (non-GAAP)

 

1.38

%

 

 

1.52

%

 

 

0.68

%

 

 

1.13

%

 

 

0.84

%

Return on average stockholders’ equity excluding merger costs:

Return on average stockholders' equity (ROAE) (GAAP)

 

12.89

%

 

 

14.50

%

 

 

6.69

%

 

 

8.55

%

 

 

8.37

%

Add: Impact of merger costs, net of tax

 

%

 

 

%

 

 

0.69

%

 

 

2.46

%

 

 

0.50

%

ROAE excluding merger costs (non-GAAP)

 

12.89

%

 

 

14.50

%

 

 

7.38

%

 

 

11.01

%

 

 

8.87

%

Efficiency ratio excluding merger related expenses:

Efficiency ratio (GAAP)

 

60.33

%

 

 

59.45

%

 

 

83.41

%

 

 

72.20

%

 

 

80.38

%

Less: Impact of merger related expenses

 

%

 

 

%

 

 

1.57

%

 

 

5.66

%

 

 

1.11

%

Efficiency ratio excluding merger related expenses (non-GAAP)

 

60.33

%

 

 

59.45

%

 

 

81.84

%

 

 

66.54

%

 

 

79.27

%

Diluted earnings per share excluding merger costs:

Diluted earnings per share (GAAP)

$

0.96

 

 

$

1.04

 

 

$

0.47

 

 

$

2.48

 

 

$

2.30

 

Add: Impact of merger costs, net of tax

 

 

 

 

 

 

 

0.05

 

 

 

0.72

 

 

 

0.14

 

Diluted earnings per share excluding merger costs (non-GAAP)

$

0.96

 

 

$

1.04

 

 

$

0.52

 

 

$

3.20

 

 

$

2.44

 

Fully tax equivalent (FTE) net interest income and net interest margin on FTE basis:

Net interest income (GAAP)

$

73,276

 

 

$

68,486

 

 

$

40,451

 

 

$

241,632

 

 

$

155,233

 

Gross income effect of tax exempt income

 

1,218

 

 

 

1,236

 

 

 

1,336

 

 

 

5,059

 

 

 

5,755

 

FTE net interest income (non-GAAP)

$

74,494

 

 

$

69,722

 

 

$

41,787

 

 

$

246,691

 

 

$

160,988

 

Average earning assets

$

6,589,827

 

 

$

6,434,653

 

 

$

5,414,566

 

 

$

6,244,221

 

 

$

5,180,650

 

Net interest margin

 

4.45

%

 

 

4.26

%

 

 

2.99

%

 

 

3.87

%

 

 

3.00

%

Net interest margin on FTE basis (non-GAAP)

 

4.52

%

 

 

4.31

%

 

 

3.09

%

 

 

3.95

%

 

 

3.11

%

 

 

 

 

 

 

 

 

 

 

 

As of

($ in thousands)

December 31,

2022

 

 

Total loan growth, excluding acquired Pioneer loans as of April 1, 2022, and PPP loans:

 

Total loans for the year ended:

 

December 31, 2022

$

5,911,832

 

Less: Acquired loans at date of merger, net of purchase accounting adjustments

 

(811,300

)

Less: PPP loans

 

(4,352

)

Total loans, excluding acquired Pioneer loans and PPP loans

$

5,096,180

 

December 31, 2021

$

4,037,123

 

Less: PPP loans

 

(66,749

)

Total loans, excluding PPP loans

$

3,970,374

 

Total loan growth (GAAP)

$

1,874,709

 

Total loan growth, excluding acquired Pioneer loans and PPP loans (non-GAAP)

$

1,125,806

 

Total loan growth (GAAP)

 

46.4

%

Total loan growth, excluding acquired Pioneer loans and PPP loans (non-GAAP)

 

28.4

%

 

 

 

As of

and for

the year

ended

($ in thousands)

 

December 31,

2022

 

 

 

Total average deposit growth, excluding acquired Pioneer deposits as of April 1, 2022:

 

 

Total average deposits for the periods ended:

 

 

December 31, 2022

 

$

5,610,858

 

Less: Acquired deposits at date of merger, net of purchase accounting adjustments

 

 

(1,192,081

)

Total average deposits, excluding acquired Pioneer deposits

 

$

4,418,777

 

December 31, 2021

 

$

4,639,820

 

Total average deposit growth (GAAP)

 

$

971,038

 

Total average deposit growth, excluding acquired Pioneer deposits (non-GAAP)

 

$

(221,043

)

Total average deposit growth (GAAP)

 

 

20.9

%

Total average deposit growth, excluding acquired Pioneer deposits (non-GAAP)

 

 

(4.8

)%

 

Contacts

Investor Relations:

Kelly C. Rackley

Corporate Secretary & Stockholder Relations Manager

303.962.0150 | stockholder.relations@sunflowerbank.com

Media Relations:

Jeanne Lipson

Vice President, Marketing

915.881.6785

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