Access National Corporation (NASDAQ: ANCX) (the “Corporation” or “Access”), parent company for Access National Bank (the “Bank”) and Middleburg Investment Group, reported second quarter 2017 net income of $3.85 million, or $0.19 per common share. Excluding merger related one-time charges, net income was $7.46 million or $0.37 per diluted share. This represents the Corporation’s 68th consecutive quarterly profit over its 70 quarter history. Consistent with management’s stated objective of a 40% to 50% dividend payout ratio against core earnings, the Board of Directors declared a dividend of $0.15 per share for common shareholders of record as of August 14, 2017 and payable on August 25, 2017.
Highlights
- Strategic merger with Middleburg Financial Corporation (NASDAQ: MBRG) closed on schedule April 1, 2017 and data/office integrations remain on schedule for August 4, 2017;
- Reported second quarter earnings of $3.85 million or $0.19 per diluted share. Excluding $5.2 million in pre-tax merger related costs ($3.6 million after-tax), earnings were $7.46 million or $0.37 per diluted share;
- Tangible book value1 per common share was $11.32 at June 30, 2017, an increase of $0.09 from the prior period after considering merger costs;
- Loans held for investment were $1.93 billion at June 30, 2017 compared to $943 million at June 30, 2016, a year-over-year growth of 204.5%. Exclusive of purchased loans, linked quarter growth was $38 million or 7.8% annualized; and
- Non-interest bearing demand deposits of $660 million were 30.2% of total deposits at June 30, 2017 compared to $392 million at June 30, 2016, a year-over-year growth of 168.4%.
The transformative combination of Access National with Middleburg Financial was consummated on April 1, 2017 as announced October 24, 2016. “While most of the expected overhead efficiencies have yet to be realized, management’s excitement and confidence over the financial benefits of this combination strengthen daily. The evidence of our confidence is best illustrated by the organic growth in the loan portfolio and the positive quality migration of core deposits in spite of significant management distraction towards integration and conversion activities,” said Michael Clarke, President and Chief Executive Officer of Access. He continued, “We remain committed to delivering the base line economic assumptions behind the merger and are confident that future financial results will fortify and advance shareholder interests.”
Second quarter 2017 pre-tax earnings were $5.9 million, up $1.8 million from first quarter 2017, and included pre-tax merger related costs of $5.2 million. The commercial banking segment’s net interest income grew $12.5 million when compared to the first quarter of 2017 and was offset by an increase in salaries and employee benefits of $3.8 million. The mortgage banking segment has been relatively unaffected by the merger, contributing pre-tax earnings of $1.2 million or 20% of the consolidated total. The wealth services segment saw a $1.1 million increase in revenue which was offset by an increase in operating expenses of $849 thousand when comparing the second quarter of 2017 to the first quarter of 2017. The earnings contributions from wealth services will be developing over the next few quarters as the unprofitable operations of the legacy Access segment are integrated with and suppress the profitable operations of Middleburg Investment Group. Departure of underperforming personnel and loss of select underpriced accounts during the second quarter transition will result in reduced overhead of a greater magnitude than loss of revenue contribution from associated lost business. The leadership of Middleburg Investment Group and the expanded capabilities resulting from the merger are enhancing the client value proposition in a way that will produce consistent and growing fee income.
The net interest margin increased to 3.91% from 3.46% when comparing second quarter to first quarter 2017. Second quarter net interest margin exclusive of the $1.9 million credit mark accretion for the acquired loan portfolio and the $34 thousand in liability discount amortization was 3.61% for the three months ended June 30, 2017.
Total assets were $2.8 billion at June 30, 2017, up from $1.4 billion at March 31, 2017. Organic growth in loans held for investment excluding the growth attributed to the acquired loan portfolio was $38.0 million on a linked quarter basis due mainly to growth in commercial real estate of $29.7 million and commercial of $10.3 million. The organic growth from the linked period reflects intended migration as the residential and consumer loan categories decreased while commercial, commercial real estate and construction categories grew.
Total deposits at June 30, 2017 were $2.2 billion, an increase of $1.0 billion when compared to March 31, 2017. At June 30, 2017, non-interest bearing deposits which represent 30.2% of the deposit portfolio were $660.5 million, an increase of $283.8 million from the linked quarter. While non-interest bearing demand deposits remain the largest and most attractive source of funding for the Corporation, the combination of legacy Middleburg’s significant low cost interest-bearing demand deposits and legacy Access’ non-interest bearing demand deposits accounted for $1.1 billion or 51.0% of total deposits at June 30, 2017. Interest-bearing deposits increased to $1.5 billion at June 30, 2017, an increase of $746.4 million from the prior quarter. Brokered deposits as a percentage of the deposit portfolio decreased quarter over quarter, from 9.5% of the portfolio at March 31, 2017 to 4.6% at June 30, 2017. Exclusive of purchased deposits, wholesale deposits declined $52.8 million on a linked quarter basis. The go-forward strategy places a high priority on the maintenance and expansion of core deposits, particularly high value demand deposit relationships.
As a result of the strategic merger, the loan to deposit ratio dropped to 88.2% at June 30, 2017 from 92.7% in the prior period. Appropriately leveraging the loan to deposit ratio in future periods represents an earnings growth opportunity.
Non-performing assets (“NPAs”) increased to $9.0 million at June 30, 2017 from $5.2 million at March 31, 2017, representing 0.32% and 0.37% of total assets, respectively. Included in the NPAs total is $2.4 million in other real estate owned. The allowance for loan loss was $14.7 million and $13.7 million at June 30, 2017 and March 31, 2017, respectively, and represented 0.76% of total loans held for investment at June 30, 2017 and 1.28% of total loans held for investment at March 31, 2017. The remaining credit and fair value marks on the loans acquired in the merger totaled $16.0 million at June 30, 2017.
Tangible book value2 per common share increased from $11.23 at March 31, 2017 to $11.32 at June 30, 2017. The tangible common equity ratio for Access National Corporation and its subsidiary bank was 8.97% at June 30, 2017, within the Corporation’s target range of 8.00% to 10.50%.
Access National Corporation is the parent company of Access National Bank and Middleburg Investment Group serving Northern and Central Virginia. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".
Forward-Looking Statements
The information presented herein contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding expectations or predictions of future financial or business performance or conditions. Forward-looking statements may be identified by words such as "may," "could," "will," "expect," "believe," "anticipate," "forecast," "intend," "plan," "prospects," "estimate," "potential," or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. Forward-looking statements in this report may include, but are not limited to, statements about projected impacts of and financial results generated by the merger of Access and Middleburg Financial Corporation (“Middleburg”). Forward-looking statements speak only as of the date they are made and Access assumes no duty to update forward-looking statements.
In addition to factors previously disclosed in Access's reports filed with the SEC and those identified elsewhere in this release, the following factors, among others, could cause actual results to differ materially from the results expressed in or implied by forward-looking statements and historical performance: changes in asset quality and credit risk; changes in interest rates and capital markets; the introduction, timing and success of business initiatives; competitive conditions; and the inability to recognize cost savings or revenues or to implement integration plans associated with the merger of Access and Middleburg.
1 | Non-GAAP financial information. | |
2 | Non-GAAP financial information. | |
Access National Corporation | |||||||||||
Consolidated Balance Sheet | |||||||||||
June 30 | December 31, | June 30, | |||||||||
2017 | 2016 | 2016 | |||||||||
(In Thousands Except for Share and Per Share Data) | (Unaudited) | (Unaudited) | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 19,772 | $ | 9,186 | $ | 14,994 | |||||
Interest-bearing balances and federal funds sold | 46,889 | 81,873 | 66,541 | ||||||||
Investment securities: | |||||||||||
Available-for-sale, at fair value | 402,557 | 194,090 | 173,558 | ||||||||
Held-to-maturity, at amortized cost (fair value of $16,449, $9,293 and $9,487, respectively) | 15,786 | 9,200 | 9,228 | ||||||||
Total investment securities | 418,343 | 203,290 | 182,786 | ||||||||
Restricted Stock, at amortized cost | 8,742 | 10,092 | 7,159 | ||||||||
Loans held for sale - at fair value | 34,954 | 35,676 | 55,116 | ||||||||
Loans held for investment net of allowance for loan losses of $14,671, $16,008 and $13,834, respectively | 1,913,674 | 1,033,690 | 928,895 | ||||||||
Premises, equipment and land, net | 29,363 | 7,084 | 6,822 | ||||||||
Goodwill and intangible assets | 184,194 | 1,833 | 1,857 | ||||||||
Other assets | 101,059 | 47,984 | 40,701 | ||||||||
Total assets | $ | 2,756,990 | $ | 1,430,708 | $ | 1,304,871 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
LIABILITIES | |||||||||||
Noninterest-bearing deposits | $ | 660,481 | $ | 362,036 | $ | 392,269 | |||||
Interest-bearing demand deposits | 454,675 | 126,189 | 123,638 | ||||||||
Savings and money market deposits | 611,708 | 314,396 | 242,026 | ||||||||
Time deposits | 460,342 | 251,706 | 286,612 | ||||||||
Total deposits | 2,187,206 | 1,054,327 | 1,044,545 | ||||||||
Short-term borrowings | 55,429 | 186,009 | 56,763 | ||||||||
Long-term borrowings | 80,000 | 60,000 | 75,000 | ||||||||
Trust Preferred Debentures | 3,843 | - | - | ||||||||
Other liabilities and accrued expenses | 15,644 | 9,842 | 10,177 | ||||||||
Total Liabilities | 2,342,122 | 1,310,178 | 1,186,485 | ||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 20,378,994, 10,636,242 and 10,583,594, respectively | 17,016 | 8,881 | 8,837 | ||||||||
Additional paid in capital | 303,997 | 21,779 | 20,625 | ||||||||
Retained earnings | 94,664 | 91,439 | 87,188 | ||||||||
Accumulated other comprehensive income (loss), net | (809 | ) | (1,569 | ) | 1,736 | ||||||
Total shareholders' equity | 414,868 | 120,530 | 118,386 | ||||||||
Total liabilities and shareholders' equity | $ | 2,756,990 | $ | 1,430,708 | $ | 1,304,871 | |||||
Access National Corporation | ||||||||||||||||
Consolidated Statement of Operations | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||
(In Thousands Except for Share and Per Share Data) | (unaudited) | (unaudited) | ||||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 23,746 | $ | 11,354 | $ | 35,945 | $ | 22,230 | ||||||||
Interest on federal funds sold and bank balances | 221 | 96 | 352 | 166 | ||||||||||||
Interest and dividends on securities | 3,172 | 886 | 4,396 | 1,921 | ||||||||||||
Total interest income | 27,139 | 12,336 | 40,693 | 24,317 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest on deposits | 2,419 | 1,274 | 3,921 | 2,425 | ||||||||||||
Interest on other borrowings | 545 | 301 | 907 | 581 | ||||||||||||
Total interest expense | 2,964 | 1,575 | 4,828 | 3,006 | ||||||||||||
Net interest income | 24,175 | 10,761 | 35,865 | 21,311 | ||||||||||||
Provision for loan losses | 900 | 120 | 2,300 | 120 | ||||||||||||
Net interest income after provision for loan losses | 23,275 | 10,641 | 33,565 | 21,191 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges and fees | 669 | 239 | 949 | 499 | ||||||||||||
Gain on sale of loans | 6,046 | 7,273 | 9,391 | 11,103 | ||||||||||||
Other Income | 2,170 | 1,661 | 4,548 | 4,390 | ||||||||||||
Total noninterest income | 8,885 | 9,173 | 14,888 | 15,992 | ||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries and benefits | 12,660 | 8,407 | 20,700 | 16,075 | ||||||||||||
Occupancy and equipment | 1,981 | 749 | 2,801 | 1,510 | ||||||||||||
Other operating expense | 11,585 | 3,147 | 14,920 | 5,847 | ||||||||||||
Total noninterest expense | 26,226 | 12,303 | 38,421 | 23,432 | ||||||||||||
Income before income tax | 5,934 | 7,511 | 10,032 | 13,751 | ||||||||||||
Income tax expense | 2,088 | 2,633 | 3,579 | 4,778 | ||||||||||||
NET INCOME | $ | 3,846 | $ | 4,878 | $ | 6,453 | $ | 8,973 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.19 | $ | 0.46 | $ | 0.42 | $ | 0.85 | ||||||||
Diluted | $ | 0.19 | $ | 0.46 | $ | 0.41 | $ | 0.84 | ||||||||
Average outstanding shares: | ||||||||||||||||
Basic | 20,335,070 | 10,576,516 | 15,529,934 | 10,564,833 | ||||||||||||
Diluted | 20,453,991 | 10,639,167 | 15,655,613 | 10,622,763 | ||||||||||||
Performance and Capital Ratios | ||||||||||||||||||||
Three Months | Three Months | Six Months | Six Months | Twelve Months | ||||||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
June 30, | March 31, | June 30, | June 30, | December 31, | ||||||||||||||||
(Dollars In Thousands) | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||
Return on average assets (annualized) | 0.55 | % | 0.74 | % | 0.62 | % | 1.45 | % | 1.27 | % | ||||||||||
Return on average equity (annualized) | 3.73 | % | 8.57 | % | 4.83 | % | 15.89 | % | 14.11 | % | ||||||||||
Net interest margin | 3.91 | % | 3.46 | % | 3.75 | % | 3.56 | % | 3.52 | % | ||||||||||
Efficiency ratio - Bank only | 59.23 | % | 53.26 | % | 57.30 | % | 50.64 | % | 49.59 | % | ||||||||||
Total average equity to earning assets | 16.68 | % | 8.99 | % | 13.95 | % | 9.43 | % | 9.36 | % | ||||||||||
Tangible common equity ratio (1) | 8.97 | % | 8.65 | % | 8.97 | % | 8.94 | % | 8.31 | % | ||||||||||
Averages | ||||||||||||||||||||
Assets | $ | 2,789,088 | $ | 1,401,652 | $ | 2,096,372 | $ | 1,238,662 | $ | 1,288,582 | ||||||||||
Loans held for investment | 1,896,824 | 1,052,167 | 1,474,551 | 910,300 | 939,837 | |||||||||||||||
Loans held for sale | 28,254 | 24,461 | 26,368 | 39,982 | 47,060 | |||||||||||||||
Interest-bearing deposits & federal funds sold | 121,572 | 64,628 | 94,174 | 68,435 | 67,457 | |||||||||||||||
Investment securities | 422,792 | 209,533 | 316,345 | 179,600 | 189,585 | |||||||||||||||
Earning assets | 2,471,036 | 1,353,360 | 1,913,515 | 1,197,547 | 1,242,923 | |||||||||||||||
Interest-bearing deposits | 1,523,997 | 761,075 | 1,143,566 | 634,692 | 662,271 | |||||||||||||||
Total deposits | 2,163,567 | 1,096,309 | 1,631,078 | 962,973 | 1,021,624 | |||||||||||||||
Repurchase agreements & federal funds purchased | 53,949 | 28,369 | 41,148 | 15,712 | 16,270 | |||||||||||||||
FHLB short term borrowings | 57,824 | 86,200 | 71,934 | 68,791 | 56,522 | |||||||||||||||
FHLB long-term borrowings | 79,892 | 59,556 | 69,698 | 69,478 | 68,525 | |||||||||||||||
Trust Preferred debt | 3,824 | - | 1,919 | - | - | |||||||||||||||
Equity | $ | 412,146 | $ | 121,724 | $ | 266,951 | $ | 112,908 | $ | 116,296 | ||||||||||
Allowance for loan losses/loans held for investment | 0.76 | % | 1.28 | % | 0.76 | % | 1.47 | % | 1.53 | % | ||||||||||
Total NPA | $ | 8,954 | $ | 5,244 | $ | 6,506 | $ | 1,866 | $ | 6,922 | ||||||||||
NPA to total assets | 0.32 | % | 0.37 | % | 0.24 | % | 0.14 | % | 0.48 | % | ||||||||||
Mortgage loan originations and brokered loans | $ | 116,958 | $ | 94,500 | $ | 211,458 | $ | 260,644 | $ | 544,866 | ||||||||||
Gain on sale of mortgage loans net hedging activity | $ | 5,421 | $ | 3,416 | $ | 8,837 | $ | 9,814 | $ | 23,835 | ||||||||||
Allowance for losses on mortgage loans sold | $ | 1,029 | $ | 1,029 | $ | 1,029 | $ | 1,029 | $ | 1,029 | ||||||||||
Wealth Services segment - assets under management | $ | 1,927,629 | $ | 676,865 | $ | 1,927,629 | $ | 625,000 | $ | 667,300 | ||||||||||
Book value per common share | $ | 20.36 | $ | 11.40 | $ | 20.36 | $ | 11.19 | $ | 11.33 | ||||||||||
Tangible book value per common share (1) | $ | 11.32 | $ | 11.23 | $ | 11.32 | $ | 11.01 | $ | 11.16 | ||||||||||
(1) Non-GAAP financial information. | ||||||||||||||||||||
Composition of Loan Portfolio | ||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||||||||||
Percentage | Percentage | Percentage | Percentage | Percentage | ||||||||||||||||||||||||||
(Dollars In Thousands) | Amount | of Total | Amount | of Total | Amount | of Total | Amount | of Total | Amount | of Total | ||||||||||||||||||||
Commercial real estate - owner occupied | $ | 401,853 | 20.84 | % | $ | 262,431 | 23.87 | % | $ | 250,440 | 23.87 | % | $ | 238,224 | 24.65 | % | $ | 235,735 | 25.01 | % | ||||||||||
Commercial real estate - non-owner occupied | 377,037 | 19.55 | 205,452 | 17.59 | 184,688 | 17.59 | 174,342 | 18.04 | 153,206 | 16.25 | ||||||||||||||||||||
Residential real estate | 525,649 | 27.26 | 212,007 | 19.47 | 204,413 | 19.47 | 202,605 | 20.96 | 208,311 | 22.10 | ||||||||||||||||||||
Commercial | 476,055 | 24.69 | 294,451 | 29.67 | 311,486 | 29.67 | 264,794 | 27.40 | 257,139 | 27.28 | ||||||||||||||||||||
Real estate construction | 124,186 | 6.44 | 91,614 | 8.75 | 91,822 | 8.75 | 79,621 | 8.24 | 79,200 | 8.39 | ||||||||||||||||||||
Consumer | 23,565 | 1.22 | 6,836 | 0.65 | 6,849 | 0.65 | 6,959 | 0.71 | 9,138 | 0.97 | ||||||||||||||||||||
Total loans | $ | 1,928,345 | 100.00 | % | $ | 1,072,791 | 100.00 | % | $ | 1,049,698 | 100.00 | % | $ | 966,545 | 100.00 | % | $ | 942,729 | 100.00 | % | ||||||||||
Less allowance for loan losses | 14,671 | 13,727 | 16,008 | 14,696 | 13,834 | |||||||||||||||||||||||||
$ | 1,913,674 | $ | 1,059,064 | $ | 1,033,690 | $ | 951,849 | $ | 928,895 | |||||||||||||||||||||
Composition of Deposits | ||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||||||||||
Percentage | Percentage | Percentage | Percentage | Percentage | ||||||||||||||||||||||||||
(Dollars In Thousands) | Amount | of Total | Amount | of Total | Amount | of Total | Amount | of Total | Amount | of Total | ||||||||||||||||||||
Demand deposits | $ | 660,481 | 30.20 | % | $ | 376,674 | 32.56 | % | $ | 362,036 | 34.34 | % | $ | 409,558 | 36.73 | % | $ | 392,269 | 37.55 | % | ||||||||||
Interest-bearing demand deposits | 454,675 | 20.79 | 141,981 | 12.27 | 126,189 | 11.97 | 124,856 | 11.20 | 123,638 | 11.84 | ||||||||||||||||||||
Savings and money market | 562,581 | 25.72 | 284,182 | 24.56 | 270,310 | 25.64 | 265,308 | 23.79 | 206,566 | 19.78 | ||||||||||||||||||||
CDARS time deposits | 39,746 | 1.82 | 41,369 | 3.58 | 34,290 | 3.25 | 36,948 | 3.31 | 53,212 | 5.09 | ||||||||||||||||||||
CDARS/ICS non-maturity deposits | 44,009 | 2.01 | 42,960 | 3.71 | 40,925 | 3.88 | 46,156 | 4.14 | 35,247 | 3.37 | ||||||||||||||||||||
Brokered deposits | 101,419 | 4.64 | 110,254 | 9.53 | 57,389 | 5.44 | 68,483 | 6.14 | 69,139 | 6.62 | ||||||||||||||||||||
Time deposits | 324,295 | 14.82 | 159,570 | 13.79 | 163,188 | 15.48 | 163,744 | 14.69 | 164,474 | 15.75 | ||||||||||||||||||||
Total Deposits | $ | 2,187,206 | 100.00 | % | $ | 1,156,990 | 100.00 | % | $ | 1,054,327 | 100.00 | % | $ | 1,115,053 | 100.00 | % | $ | 1,044,545 | 100.00 | % | ||||||||||
Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||
Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||
(Dollars In Thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
Assets: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Securities | $ | 424,387 | $ | 3,172 | 2.99 | % | $ | 181,327 | $ | 886 | 1.95 | % | ||||||||
Loans held for sale | 28,254 | 297 | 4.20 | % | 45,357 | 437 | 3.85 | % | ||||||||||||
Loans(1) | 1,896,824 | 23,449 | 4.94 | % | 915,218 | 10,917 | 4.77 | % | ||||||||||||
Interest-bearing balances and federal funds sold | 121,572 | 221 | 0.73 | % | 84,007 | 96 | 0.46 | % | ||||||||||||
Total interest-earning assets | 2,471,037 | 27,139 | 4.39 | % | 1,225,909 | 12,336 | 4.03 | % | ||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash and due from banks | 17,131 | 12,513 | ||||||||||||||||||
Premises, land and equipment | 29,459 | 6,959 | ||||||||||||||||||
Other assets | 285,518 | 36,775 | ||||||||||||||||||
Less: allowance for loan losses | (14,057 | ) | (13,652 | ) | ||||||||||||||||
Total noninterest-earning assets | 318,051 | 42,595 | ||||||||||||||||||
Total Assets | $ | 2,789,088 | $ | 1,268,504 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest-bearing demand deposits | $ | 472,065 | $ | 345 | 0.29 | % | $ | 133,147 | $ | 126 | 0.38 | % | ||||||||
Money market deposit accounts | 367,590 | 478 | 0.52 | % | 190,324 | 166 | 0.35 | % | ||||||||||||
Savings accounts | 191,409 | 212 | 0.44 | % | 32,520 | 43 | 0.53 | % | ||||||||||||
Time deposits | 492,932 | 1,384 | 1.12 | % | 301,372 | 939 | 1.25 | % | ||||||||||||
Total interest-bearing deposits | 1,523,996 | 2,419 | 0.63 | % | 657,363 | 1,274 | 0.78 | % | ||||||||||||
Borrowings: | ||||||||||||||||||||
FHLB short-term borrowings and subordinated debt | 61,649 | 332 | 2.15 | % | 51,154 | 88 | 0.69 | % | ||||||||||||
Securities sold under agreements to repurchase and fed funds purchased | 53,949 | 26 | 0.19 | % | 13,981 | 4 | 0.11 | % | ||||||||||||
FHLB long-term borrowings | 79,892 | 188 | 0.94 | % | 74,341 | 209 | 1.12 | % | ||||||||||||
Total borrowings | 195,490 | 546 | 1.12 | % | 139,476 | 301 | 0.86 | % | ||||||||||||
Total interest-bearing deposits and borrowings | 1,719,486 | 2,965 | 0.69 | % | 796,839 | 1,575 | 0.79 | % | ||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | 639,570 | 348,056 | ||||||||||||||||||
Other liabilities | 17,886 | 8,861 | ||||||||||||||||||
Total liabilities | 2,376,942 | 1,153,756 | ||||||||||||||||||
Shareholders' Equity | 412,146 | 114,748 | ||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,789,088 | $ | 1,268,504 | ||||||||||||||||
Interest Spread(2) | 3.70 | % | 3.23 | % | ||||||||||||||||
Net Interest Margin(3) | $ | 24,174 | 3.91 | % | $ | 10,761 | 3.51 | % | ||||||||||||
(1) | Loans placed on nonaccrual status are included in loan balances. | ||
(2) | Interest spread is the average yield earned on earning assets, less the average rate incurred on interest-bearing liabilities. | ||
(3) | Net interest margin is net interest income, expressed as a percentage of average earning assets. | ||
Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities | ||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||||
Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||||||||
(Dollars In Thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Securities | $ | 318,422 | $ | 4,396 | 2.76 | % | $ | 179,600 | $ | 1,921 | 2.14 | % | ||||||||||||||
Loans held for sale | 26,368 | 547 | 4.15 | % | 39,982 | 781 | 3.91 | % | ||||||||||||||||||
Loans(1) | 1,474,551 | 35,398 | 4.80 | % | 910,300 | 21,449 | 4.71 | % | ||||||||||||||||||
Interest-bearing balances and federal funds sold | 94,174 | 352 | 0.75 | % | 68,435 | 166 | 0.49 | % | ||||||||||||||||||
Total interest-earning assets | 1,913,515 | 40,693 | 4.25 | % | 1,198,317 | 24,317 | 4.06 | % | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||
Cash and due from banks | 14,416 | 12,110 | ||||||||||||||||||||||||
Premises, land and equipment | 18,280 | 6,843 | ||||||||||||||||||||||||
Other assets | 164,945 | 35,008 | ||||||||||||||||||||||||
Less: allowance for loan losses | (14,784 | ) | (13,616 | ) | ||||||||||||||||||||||
Total noninterest-earning assets | 182,857 | 40,345 | ||||||||||||||||||||||||
Total Assets | $ | 2,096,372 | $ | 1,238,662 | ||||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 307,685 | $ | 498 | 0.32 | % | $ | 129,064 | $ | 233 | 0.36 | % | ||||||||||||||
Money market deposit accounts | 313,339 | 823 | 0.53 | % | 166,273 | 265 | 0.32 | % | ||||||||||||||||||
Savings accounts | 126,103 | 302 | 0.48 | % | 33,609 | 90 | 0.54 | % | ||||||||||||||||||
Time deposits | 396,439 | 2,298 | 1.16 | % | 305,746 | 1,837 | 1.20 | % | ||||||||||||||||||
Total interest-bearing deposits | 1,143,566 | 3,921 | 0.69 | % | 634,692 | 2,425 | 0.76 | % | ||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
FHLB short-term borrowings and subordinated debt | 73,853 | 498 | 1.35 | % | 68,791 | 211 | 0.61 | % | ||||||||||||||||||
Securities sold under agreements to repurchase and fed funds purchased | 41,148 | 42 | 0.20 | % | 15,712 | 7 | 0.09 | % | ||||||||||||||||||
FHLB long-term borrowings | 69,698 | 368 | 1.06 | % | 69,478 | 363 | 1.04 | % | ||||||||||||||||||
Total borrowings | 184,699 | 908 | 0.98 | % | 153,981 | 581 | 0.75 | % | ||||||||||||||||||
Total interest-bearing deposits and borrowings | 1,328,265 | 4,829 | 0.73 | % | 788,673 | 3,006 | 0.76 | % | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||
Demand deposits | 487,511 | 328,281 | ||||||||||||||||||||||||
Other liabilities | 13,645 | 8,800 | ||||||||||||||||||||||||
Total liabilities | 1,829,421 | 1,125,754 | ||||||||||||||||||||||||
Shareholders' Equity | 266,951 | 112,908 | ||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,096,372 | $ | 1,238,662 | ||||||||||||||||||||||
Interest Spread(2) | 3.53 | % | 3.30 | % | ||||||||||||||||||||||
Net Interest Margin(3) | $ | 35,864 | 3.75 | % | $ | 21,311 | 3.56 | % | ||||||||||||||||||
(1) Loans placed on nonaccrual status are included in loan balances. | ||||||||||||||||||||||||||
(2) Interest spread is the average yield earned on earning assets, less the average rate incurred on interest-bearing liabilities. | ||||||||||||||||||||||||||
(3) Net interest margin is net interest income, expressed as a percentage of average earning assets. | ||||||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||||||
Three Months Ended | Commercial | Mortgage | Trust & Wealth | Consolidated | ||||||||||||||||||||||||
June 30, 2017 | Banking | Banking | Management | Other | Eliminations | Totals | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Interest income | $ | 26,917 | $ | 297 | $ | 3 | $ | 6 | $ | (84 | ) | $ | 27,139 | |||||||||||||||
Gain on sale of loans | - | 6,046 | - | - | - | 6,046 | ||||||||||||||||||||||
Other revenues | 1,703 | (692 | ) | 1,824 | 328 | (323 | ) | 2,840 | ||||||||||||||||||||
Total revenues | 28,620 | 5,651 | 1,827 | 334 | (407 | ) | 36,025 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Interest expense | 2,854 | 16 | - | 179 | (84 | ) | 2,965 | |||||||||||||||||||||
Salaries and employee benefits | 8,240 | 3,193 | 1,227 | - | - | 12,660 | ||||||||||||||||||||||
Other expenses | 7,922 | 1,256 | 452 | 5,160 | (323 | ) | 14,467 | |||||||||||||||||||||
Total operating expenses | 19,016 | 4,465 | 1,679 | 5,339 | (407 | ) | 30,092 | |||||||||||||||||||||
Income (loss) before income taxes | $ | 9,604 | $ | 1,186 | $ | 148 | $ | (5,005 | ) | $ | - | $ | 5,933 | |||||||||||||||
Total assets | $ | 2,685,238 | $ | 37,923 | $ | 41,437 | $ | 418,877 | $ | (426,485 | ) | $ | 2,756,990 | |||||||||||||||
Three Months Ended | Commercial | Mortgage | Wealth | Consolidated | ||||||||||||||||||||||||
June 30, 2016 | Banking | Banking | Management | Other | Eliminations | Totals | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Interest income | $ | 12,092 | $ | 437 | $ | - | $ | 6 | $ | (199 | ) | $ | 12,336 | |||||||||||||||
Gain on sale of loans | - | 7,273 | - | - | - | 7,273 | ||||||||||||||||||||||
Other revenues | 1,290 | (134 | ) | 718 | 342 | (316 | ) | 1,900 | ||||||||||||||||||||
Total revenues | 13,382 | 7,576 | 718 | 348 | (515 | ) | 21,509 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Interest expense | 1,580 | 127 | - | 67 | (199 | ) | 1,575 | |||||||||||||||||||||
Salaries and employee benefits | 4,165 | 3,714 | 528 | - | - | 8,407 | ||||||||||||||||||||||
Other expenses | 1,867 | 1,567 | 259 | 639 | (316 | ) | 4,016 | |||||||||||||||||||||
Total operating expenses | 7,612 | 5,408 | 787 | 706 | (515 | ) | 13,998 | |||||||||||||||||||||
Income (loss) before income taxes | $ | 5,770 | $ | 2,168 | $ | (69 | ) | $ | (358 | ) | $ | - | $ | 7,511 | ||||||||||||||
Total assets | $ | 1,245,441 | $ | 60,831 | $ | 2,861 | $ | 17,772 | $ | (22,034 | ) | $ | 1,304,871 | |||||||||||||||
Segment Reporting | |||||||||||||||||||||||||||
Six Months Ended | Commercial | Mortgage | Trust & Wealth | Consolidated | |||||||||||||||||||||||
June 30, 2017 | Banking | Banking | Management | Other | Eliminations | Totals | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||
Interest income | $ | 40,311 | $ | 547 | $ | 3 | $ | 12 | $ | (180 | ) | $ | 40,693 | ||||||||||||||
Gain on sale of loans | - | 9,391 | - | - | - | 9,391 | |||||||||||||||||||||
Other revenues | 2,468 | 434 | 2,578 | 664 | (646 | ) | 5,498 | ||||||||||||||||||||
Total revenues | 42,779 | 10,372 | 2,581 | 676 | (826 | ) | 55,582 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||
Interest expense | 4,724 | 43 | - | 242 | (180 | ) | 4,829 | ||||||||||||||||||||
Salaries and employee benefits | 12,658 | 6,224 | 1,818 | - | - | 20,700 | |||||||||||||||||||||
Other expenses | 11,449 | 2,097 | 691 | 6,431 | (646 | ) | 20,022 | ||||||||||||||||||||
Total operating expenses | 28,831 | 8,364 | 2,509 | 6,673 | (826 | ) | 45,551 | ||||||||||||||||||||
Income (loss) before income taxes | $ | 13,948 | $ | 2,008 | $ | 72 | $ | (5,997 | ) | $ | - | $ | 10,031 | ||||||||||||||
Total assets | $ | 2,685,238 | $ | 37,923 | $ | 41,437 | $ | 418,877 | $ | (426,485 | ) | $ | 2,756,990 | ||||||||||||||
Six Months Ended | Commercial | Mortgage | Wealth | Consolidated | |||||||||||||||||||||||
June 30, 2016 | Banking | Banking | Management | Other | Eliminations | Totals | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||
Interest income | $ | 23,848 | $ | 781 | $ | - | $ | 10 | $ | (322 | ) | $ | 24,317 | ||||||||||||||
Gain on sale of loans | - | 11,103 | - | - | - | 11,103 | |||||||||||||||||||||
Other revenues | 2,226 | 1,113 | 1,496 | 689 | (635 | ) | 4,889 | ||||||||||||||||||||
Total revenues | 26,074 | 12,997 | 1,496 | 699 | (957 | ) | 40,309 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||
Interest expense | 3,016 | 178 | - | 134 | (322 | ) | 3,006 | ||||||||||||||||||||
Salaries and employee benefits | 8,088 | 6,899 | 1,088 | - | - | 16,075 | |||||||||||||||||||||
Other expenses | 3,707 | 2,636 | 550 | 1,219 | (635 | ) | 7,477 | ||||||||||||||||||||
Total operating expenses | 14,811 | 9,713 | 1,638 | 1,353 | (957 | ) | 26,558 | ||||||||||||||||||||
Income (loss) before income taxes | $ | 11,263 | $ | 3,284 | $ | (142 | ) | $ | (654 | ) | $ | - | $ | 13,751 | |||||||||||||
Total assets | $ | 1,245,441 | $ | 60,831 | $ | 2,861 | $ | 17,772 | $ | (22,034 | ) | $ | 1,304,871 | ||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801006773/en/
Contacts:
Michael Clarke, 703-871-2100