EXHIBIT 99.1
FOR IMMEDIATE RELEASE
January 22, 2019
Contact:
Investor Inquiries:
Kimberly Whitaker
972-801-5871/
ShareholderRelations@LegacyTexasFinancialGroup.com
Media Inquiries:
Jennifer Dexter
972-461-7157/
Jennifer.Dexter@LegacyTexas.com
LegacyTexas Financial Group, Inc. Reports
Fourth Quarter
and Full Year
2018
Earnings
PLANO, Texas,
January 22, 2019
--
LegacyTexas Financial Group, Inc. (Nasdaq: LTXB) (the “Company”), the holding company for LegacyTexas Bank (the “Bank”), today announced net income of
$57.8 million
for the
fourth quarter
of
2018
,
an increase
of
$14.9 million
from the
third quarter
of
2018
and
an increase
of
$43.1 million
from the
fourth quarter
of
2017
. Core (non-GAAP) net income totaled
$42.7 million
for the
fourth quarter
of
2018
,
down
$511,000
from the
third quarter
of
2018
and
up
$14.5 million
from the
fourth quarter
of
2017
.
Net income for the fourth quarters of 2018 and 2017 was impacted by one-time tax adjustments related to the December 22, 2017 enactment of the Tax Cuts and Jobs Act. The 2018 period was positively impacted by a
$15.3 million
tax benefit related to tax rate changes and the favorable outcome of the Company's change in its tax method of accounting for its loan portfolio, while the 2017 period was negatively impacted by
$13.5 million
in tax expense related to an adjustment to the Company's deferred tax asset. See “Supplemental Information- Non-GAAP Financial Measures” at the end of this document.
“We are pleased to have closed out 2018 by reporting record earnings of
$57.8 million
for the fourth quarter,” said President and CEO Kevin Hanigan. “We also had record annual earnings of
$154.2 million
. Our outstanding financial results reflect the commitment our employees have to the execution of our strategy and to serving the needs of our customers and communities.”
Fourth Quarter
2018
Performance Highlights
|
•
|
Assets of
$9.05 billion
generated basic earnings per share for the
fourth quarter
of
2018
of
$1.22
on a GAAP basis and
$0.91
on a core (non-GAAP) basis.*
|
|
•
|
GAAP return on average assets improved to an all-time high of
2.61%
for the quarter ended
December 31, 2018
, compared to
1.87%
for the quarter ended
September 30, 2018
, while core (non-GAAP) return on average assets for the quarter ended
December 31, 2018
was
1.93%
, compared to
1.88%
for the quarter ended
September 30, 2018
.*
|
|
•
|
GAAP efficiency ratio was
44.39%
for the quarter ended
December 31, 2018
, compared to
42.66%
for the quarter ended
September 30, 2018
, while core (non-GAAP) efficiency ratio was
44.13%
for the quarter ended
December 31, 2018
, compared to
42.46%
for the quarter ended
September 30, 2018
.*
|
|
•
|
Gross loans held for investment at
December 31, 2018
, excluding Warehouse Purchase Program loans, grew
$26.7 million
from
September 30, 2018
, which includes linked-quarter increases in commercial real estate, consumer real estate and other consumer loans.
|
|
•
|
Total deposits at
December 31, 2018
grew
$62.0 million
from
September 30, 2018
, which includes linked-quarter increases in interest-bearing demand and time deposits.
|
Full Year 2018 Performance Highlights
|
•
|
Net income for the year ended
December 31, 2018
totaled
$154.2 million
, an increase of
$64.7 million
from the year ended
December 31, 2017
, while core (non-GAAP) net income totaled
$138.4 million
for the year ended
December 31, 2018
, up
$36.5 million
from the year ended
December 31, 2017
.*
|
1
|
•
|
Basic earnings per share for the year ended
December 31, 2018
was
$3.27
on a GAAP basis and
$2.94
on a core (non-GAAP) basis.*
|
|
•
|
GAAP return on average assets for the year ended
December 31, 2018
was
1.73%
compared to
1.04%
for the year ended
December 31, 2017
, while core (non-GAAP) return on average assets was
1.55%
for the year ended
December 31, 2018
, compared to
1.18%
for the year ended
December 31, 2017
.*
|
|
•
|
GAAP efficiency ratio improved to
44.83%
for the year ended
December 31, 2018
, compared to
45.17%
for the year ended
December 31, 2017
. Core (non-GAAP) efficiency ratio improved to
44.77%
for the year ended
December 31, 2018
, compared to
45.38%
for the year ended
December 31, 2017
.*
|
|
•
|
Gross loans held for investment at
December 31, 2018
, excluding Warehouse Purchase Program loans, grew
$307.5 million
from
December 31, 2017
, while total deposits increased by
$74.0 million
for the same period.
|
*See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.
Financial Highlights
|
|
At or For the Quarters Ended
|
||||||||||
|
(unaudited)
|
Dec 31, 2018
|
|
Sep 30, 2018
|
|
Dec 31, 2017
|
||||||
|
|
(Dollars in thousands, except per share amounts)
|
||||||||||
|
Net interest income
|
$
|
84,299
|
|
|
$
|
85,667
|
|
|
$
|
80,199
|
|
|
Provision for credit losses
|
—
|
|
|
2,656
|
|
|
3,743
|
|
|||
|
Non-interest income
|
12,264
|
|
|
13,227
|
|
|
6,901
|
|
|||
|
Non-interest expense
|
42,868
|
|
|
42,192
|
|
|
40,708
|
|
|||
|
Income tax expense (benefit)
|
(4,074
|
)
|
|
11,225
|
|
|
27,989
|
|
|||
|
Net income
|
$
|
57,769
|
|
|
$
|
42,821
|
|
|
$
|
14,660
|
|
|
|
|
|
|
|
|
||||||
|
Basic earnings per common share
|
$
|
1.22
|
|
|
$
|
0.91
|
|
|
$
|
0.31
|
|
|
Basic core (non-GAAP) earnings per common share
1
|
$
|
0.91
|
|
|
$
|
0.92
|
|
|
$
|
0.60
|
|
|
Weighted average common shares outstanding - basic
|
47,159,578
|
|
|
47,105,655
|
|
|
46,729,160
|
|
|||
|
Estimated Tier 1 common equity risk-based capital ratio
2
|
11.05
|
%
|
|
10.46
|
%
|
|
9.40
|
%
|
|||
|
Total equity to total assets
|
12.09
|
%
|
|
11.45
|
%
|
|
10.56
|
%
|
|||
|
Tangible common equity to tangible assets - Non-GAAP
1
|
10.32
|
%
|
|
9.67
|
%
|
|
8.77
|
%
|
|||
|
1
|
See the section labeled "Supplemental Information - Non-GAAP Financial Measures" at the end of this document.
|
|
2
|
Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.
|
Basic earnings per share for the quarter ended
December 31, 2018
was
$1.22
,
an increase
of
$0.31
from the
third quarter
of
2018
and
an increase
of
$0.91
from the
fourth quarter
of
2017
. Basic core (non-GAAP) earnings per share for the
fourth quarter
of
2018
was
$0.91
,
a decrease
of
$0.01
from the
third quarter
of
2018
and
an increase
of
$0.31
from the
fourth quarter
of
2017
.
2
|
|
At or For the Years Ended
|
||||||
|
(unaudited)
|
Dec 31, 2018
|
|
Dec 31, 2017
|
||||
|
|
(Dollars in thousands,
except per share amounts)
|
||||||
|
Net interest income
|
$
|
332,508
|
|
|
$
|
311,431
|
|
|
Provision for credit losses
|
35,797
|
|
|
39,456
|
|
||
|
Non-interest income
|
49,241
|
|
|
43,582
|
|
||
|
Non-interest expense
|
171,130
|
|
|
160,344
|
|
||
|
Income tax expense
|
20,633
|
|
|
65,719
|
|
||
|
Net income
|
$
|
154,189
|
|
|
$
|
89,494
|
|
|
|
|
|
|
||||
|
Basic earnings per common share
|
$
|
3.27
|
|
|
$
|
1.91
|
|
|
Basic core (non-GAAP) earnings per common share
1
|
$
|
2.94
|
|
|
$
|
2.19
|
|
|
Weighted average common shares outstanding - basic
|
47,035,475
|
|
|
46,611,780
|
|
||
|
1
|
See the section labeled "Supplemental Information - Non-GAAP Financial Measures" at the end of this document.
|
Basic earnings per share for the year ended
December 31, 2018
was
$3.27
,
an increase
of
$1.36
from the year ended
December 31, 2017
. Basic core (non-GAAP) earnings per share for the year ended
December 31, 2018
was
$2.94
,
an increase
of
$0.75
from the year ended
December 31, 2017
. The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.
Net Interest Income and Net Interest Margin
|
|
For the Quarters Ended
|
||||||||||
|
(unaudited)
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
|
Interest income:
|
|
|
|
|
|
||||||
|
Loans held for investment, excluding Warehouse Purchase Program loans
|
$
|
90,273
|
|
|
$
|
89,034
|
|
|
$
|
79,564
|
|
|
Warehouse Purchase Program loans
|
10,472
|
|
|
12,938
|
|
|
11,568
|
|
|||
|
Loans held for sale
|
286
|
|
|
295
|
|
|
202
|
|
|||
|
Securities
|
4,640
|
|
|
4,512
|
|
|
3,979
|
|
|||
|
Interest-earning deposit accounts
|
1,507
|
|
|
1,368
|
|
|
798
|
|
|||
|
Total interest income
|
$
|
107,178
|
|
|
$
|
108,147
|
|
|
$
|
96,111
|
|
|
Net interest income
|
$
|
84,299
|
|
|
$
|
85,667
|
|
|
$
|
80,199
|
|
|
Net interest margin
|
3.98
|
%
|
|
3.90
|
%
|
|
3.78
|
%
|
|||
|
Selected average balances:
|
|
|
|
|
|
||||||
|
Total earning assets
|
$
|
8,413,462
|
|
|
$
|
8,736,076
|
|
|
$
|
8,426,339
|
|
|
Total loans held for investment
|
7,454,810
|
|
|
7,758,802
|
|
|
7,533,172
|
|
|||
|
Total securities
|
667,939
|
|
|
678,483
|
|
|
648,917
|
|
|||
|
Total deposits
|
6,790,754
|
|
|
6,851,449
|
|
|
6,759,364
|
|
|||
|
Total borrowings
|
851,084
|
|
|
1,154,079
|
|
|
1,007,747
|
|
|||
|
Total non-interest-bearing demand deposits
|
1,778,681
|
|
|
1,752,095
|
|
|
1,568,665
|
|
|||
|
Total interest-bearing liabilities
|
5,863,158
|
|
|
6,253,433
|
|
|
6,198,446
|
|
|||
Net interest income for the quarter ended
December 31, 2018
was
$84.3 million
, a
$1.4 million
, or
1.6%
,
decrease
from the
third quarter
of
2018
and a
$4.1 million
, or
5.1%
,
increase
from the
fourth quarter
of
2017
. The
$1.4 million
decrease
from the
third quarter
of
2018
was primarily driven by decreased volume in the Warehouse Purchase Program, commercial and industrial and commercial real estate portfolios, as well as increased average rates on deposits and borrowings, which was partially offset by higher average yields earned on loans compared to the
third quarter
of
2018
. Interest income earned on Warehouse Purchase Program loans
decreased
by
$2.5 million
from the
third quarter
of
2018
, as the average balance
decreased
3
by
$233.9 million
, which was partially offset by a
13
basis point
increase
in the average yield compared to the linked quarter. The average balance of commercial and industrial loans
decreased by
$63.6 million
from the
third quarter
of
2018
, while the average yield earned on this portfolio
increased
by
22
basis points for the same period, resulting in a
$175,000
increase in interest income. A
five
basis point increase in the average yield earned on the commercial real estate portfolio from the
third quarter
of
2018
partially offset a
$39.0 million
decline in the average balance, resulting in a
$115,000
decrease
in interest income. The average yield earned on the consumer real estate portfolio
increased
by
14
basis points compared to the
third quarter
of
2018
, while the average balance
increased by
$32.6 million
, which drove an
$853,000
increase
in interest income.
Interest income on loans for the
fourth quarter
of
2018
included
$358,000
in accretion of purchase accounting fair value adjustments on acquired loans, which primarily consisted of
$120,000
on acquired commercial real estate loans,
$59,000
on acquired commercial and industrial loans and
$178,000
on acquired consumer loans.
The
$4.1 million
increase in net interest income compared to the
fourth quarter
of
2017
was primarily due to a
$9.7 million
increase in interest income on loans, which was driven by higher yields earned on all loan portfolios, as well as increased volume in the commercial and industrial and consumer real estate loan portfolios. The average balance of commercial and industrial loans
increased by
$160.0 million
from the
fourth quarter
of
2017
, while the average yield earned on this portfolio
increased
by
111
basis points for the same period, resulting in a
$7.6 million
increase
in interest income. The average yield earned on the commercial and industrial portfolio for the quarter ended
December 31, 2018
was positively impacted by four increases in the Fed Funds rate totaling 100 basis points since December 31, 2017, as well as the resolution of multiple non-performing relationships over the past year. The average balance of consumer real estate loans
increased by
$121.5 million
from the
fourth quarter
of
2017
, while the average yield earned on this portfolio
increased
by
27
basis points, which led to a
$2.3 million
increase
in interest income. A
15
basis point
increase
in the average yield earned on the commercial real estate portfolio compared to the
fourth quarter
of
2017
offset a
$52.9 million
decrease
in the average balance of commercial real estate loans, resulting in a
$433,000
increase
in interest income. The average balance of Warehouse Purchase Program loans
decreased by
$298.9 million
from the
fourth quarter
of
2017
, while the average yield earned on this portfolio
increased
by
86
basis points, resulting in a
$1.1 million
decrease
in interest income compared to the
fourth quarter
of
2017
.
Interest expense for the quarter ended
December 31, 2018
increased by
$399,000
, or
1.8%
, compared to the linked quarter, which was primarily due to higher average deposit and borrowing rates, as well as increases of
$19.9 million
and
$15.0 million
in the average balances of time and interest-bearing demand deposits, respectively, compared to the
third quarter
of
2018
. A
ten
basis point
increase
in the average rate paid on savings and money market deposits compared to the linked quarter offset a
$122.3 million
decrease
in the average balance of these deposits. Interest expense on borrowings compared to the
third quarter
of
2018
decreased
by
$1.2 million
, due to a
$303.0 million
decrease
in the average balance of borrowings compared to the linked quarter, which was partially offset by a 36 basis point
increase
in the average rate paid on borrowed funds.
Compared to the
fourth quarter
of
2017
, interest expense for the quarter ended
December 31, 2018
increased by
$7.0 million
, primarily due to higher average savings and money market, time deposit and borrowing rates, as well as a
$350.0 million
increase
in the average balance of time deposits. A
32
basis point
increase
in the average rate paid on savings and money market deposits compared to the
fourth quarter
of
2017
offset a
$379.0 million
decrease
in the average balance of these deposits. A
$156.7 million
decrease
in the average balance of borrowings from the
fourth quarter
of
2017
was more than offset by a
96
basis point
increase
in the average rate, resulting in a
$1.3 million
year-over-year
increase
in interest expense on borrowed funds.
The net interest margin for the
fourth quarter
of
2018
was
3.98%
, an
eight
basis point
increase
from the
third quarter
of
2018
and a
20
basis point
increase
from the
fourth quarter
of
2017
. The average yield on earning assets for the
fourth quarter
of
2018
was
5.06%
, a
14
basis point
increase
from the
third quarter
of
2018
and a
53
basis point
increase
from the
fourth quarter
of
2017
. The cost of deposits for the
fourth quarter
of
2018
was
0.97%
,
up
ten
basis points from the linked quarter and
up
33
basis points from the
fourth quarter
of
2017
.
Non-interest Income
Non-interest income for the
fourth quarter
of
2018
was
$12.3 million
, a
$1.0 million
, or
7.3%
, decrease from the
third quarter
of
2018
and a
$5.4 million
, or
77.7%
, increase from the
fourth quarter
of
2017
. Other non-interest income for the
fourth quarter
of
2018
included a $379,000 net increase in the value of investments in community development-oriented private equity funds used for Community Reinvestment Act purposes (the "CRA Funds"), down from a $1.5 million net increase in the CRA Funds for the
third quarter
of
2018
. Gain (loss) on sale and disposition of assets for the
third quarter
of
2018
included $1.3 million in gains on the sale of foreclosed properties, which were partially offset by a $471,000 loss recorded in the
third quarter
of
2018
on the disposition of a leased branch location, with no comparable gains or losses recorded in the fourth quarter of 2018. These declines in other non-interest income and gain (loss) on sale and disposition of assets were partially offset by a
4
$1.3 million
increase in service charges and other fees compared to the
third quarter
of
2018
, primarily resulting from increased commercial loan fee income (consisting of syndication, arrangement, non-usage and pre-payment fees).
The
$5.4 million
increase in non-interest income from the
fourth quarter
of
2017
was primarily due to a $3.9 million write-down on a foreclosed property recorded in gain (loss) on sale and disposition of assets during the
fourth quarter
of
2017
, with no comparable losses recorded in the fourth quarter of 2018. Service charges and other fees increased by
$1.8 million
from the
fourth quarter
of
2017
, which was driven by higher commercial loan fee income, commercial account analysis fee income and debit card interchange income recorded in the 2018 period.
Non-interest Expenses
Non-interest expense for the
fourth quarter
of
2018
was
$42.9 million
, up
$676,000
, or
1.6%
, from the
third quarter
of
2018
and up
$2.2 million
, or
5.3%
, from the
fourth quarter
of
2017
. Outside professional services expense increased by
$870,000
from the
third quarter
of
2018
, primarily related to higher consulting costs recorded in the 2018 period, which included
$256,000
in expenses related to a
$15.3 million
one-time tax benefit recorded in the
fourth quarter
of
2018
stemming from the December 2017 enactment of the Tax Cuts and Jobs Act. Data processing expense increased by
$806,000
from the
third quarter
of
2018
due to system upgrades and technology refreshments, while advertising expense increased by
$477,000
for the same period, primarily due to a higher number of events and sponsorships in the
fourth quarter
of
2018
. These increased operating expenses were partially offset by a
$1.3 million
decrease in salaries and employee benefits expense compared to the
third quarter
of
2018
, which was driven by lower share-based compensation expense in the 2018 period related to fluctuations in the Company's share price, as well as an increase in performance incentive accruals recorded in the
third quarter
of
2018
that was not repeated in the
fourth quarter
of
2018
. These decreases in salaries and employee benefits expense from the linked quarter were partially offset by higher health care costs compared to the
third quarter
of
2018
.
The
$2.2 million
increase in non-interest expense from the
fourth quarter
of
2017
was primarily due to a
$1.4 million
increase in data processing expense due to system upgrades, technology refreshments and outsourcing certain segments of its data processing. Outside professional services expense increased by
$721,000
from the
fourth quarter
of
2017
, primarily related to higher consulting costs recorded in the 2018 period, which included
$256,000
in expenses related to a
$15.3 million
one-time tax benefit recorded in the
fourth quarter
of
2018
stemming from the December 2017 enactment of the Tax Cuts and Jobs Act. Salaries and employee benefits expense increased by
$602,000
from the
fourth quarter
of
2017
, which was driven by an increase in performance incentive accruals in the 2018 period based on a decreased level of non-performing assets, as well as merit increases awarded in the 2018 period. These year-over-year increases in salaries and employee benefits expense were partially offset by lower share-based compensation expense in the 2018 period related to fluctuations in the Company's share price. These increased operating expenses were partially offset by decreases from the
fourth quarter
of
2017
in regulatory assessments expense of
$326,000
and other non-interest expense of
$303,000
, which was primarily related to lower miscellaneous lending expenses.
Financial Condition - Loans
Gross loans held for investment at
December 31, 2018
, excluding Warehouse Purchase Program loans, grew
$26.7 million
from
September 30, 2018
, which included growth in commercial real estate, consumer real estate, and other consumer loans. At
December 31, 2018
, commercial real estate and consumer real estate loans increased by
$14.4 million
and
$72.3 million
, respectively, from
September 30, 2018
, while other consumer loans increased by
$1.3 million
for the same period. These increases were partially offset by linked-quarter declines of
$53.7 million
and
$7.6 million
in commercial and industrial and construction and land loans, respectively.
Compared to
December 31, 2017
, gross loans held for investment, excluding Warehouse Purchase Program loans, grew
$307.5 million
, which included growth in commercial real estate, commercial and industrial and consumer real estate loans. Commercial and industrial and consumer real estate loans increased by
$130.7 million
and
$176.9 million
, respectively, at
December 31, 2018
, compared to
December 31, 2017
, while commercial real estate loans increased by
$7.4 million
for the same period. These increases were partially offset by declines of
$7.2 million
and
$335,000
in construction and land and other consumer loans, respectively, compared to
December 31, 2017
.
At
December 31, 2018
, Warehouse Purchase Program loans decreased by
$94.1 million
compared to
September 30, 2018
and by
$360.4 million
compared to
December 31, 2017
.
Reserve-based energy loans, which are secured by deeds of trust on properties containing proven oil and natural gas reserves and included in the Company's commercial and industrial loan portfolio, totaled
$520.4 million
at
December 31, 2018
,
down
$27.0 million
from
$547.4 million
at
September 30, 2018
and
down
$11.3 million from
$531.7 million
at
December 31, 2017
.
5
In addition to reserve-based energy loans, the Company has loans categorized as "Midstream and Other," which are typically related to the transmission of oil and natural gas and would only be indirectly impacted by declining commodity prices. At
December 31, 2018
, "Midstream and Other" loans had a total outstanding balance of
$38.1 million
,
up
$3.3 million
from
$34.8 million
at
September 30, 2018
and
up
$22.7 million from
$15.4 million
at
December 31, 2017
.
Financial Condition - Deposits
Total deposits at
December 31, 2018
increased
by
$62.0 million
from
September 30, 2018
, which included growth of
$46.3 million
and
$146.6 million
in interest-bearing demand and time deposit balances, respectively. These increases were partially offset by declines of
$106.6 million
and
$24.3 million
in savings and money market and non-interest-bearing demand deposits, respectively, from
September 30, 2018
.
Compared to
December 31, 2017
, total deposits increased by
$74.0 million
, which included growth in time and non-interest-bearing demand deposits of
$418.0 million
and
$138.1 million
, respectively, while savings and money market and interest-bearing demand deposits decreased by
$279.5 million
and
$202.6 million
, respectively. At
December 31, 2018
, non-interest-bearing demand deposits totaled
25.9%
of total deposits, compared to
24.2%
of total deposits at
December 31, 2017
.
Credit Quality
|
|
At or For the Quarters Ended
|
||||||||||
|
(unaudited)
|
Dec 31, 2018
|
|
Sep 30, 2018
|
|
Dec 31, 2017
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
|
Net charge-offs (recoveries)
|
$
|
(1,074
|
)
|
|
$
|
791
|
|
|
$
|
2,643
|
|
|
Net charge-offs (recoveries)/Average loans held for investment, excluding Warehouse Purchase Program loans
|
(0.07
|
)%
|
|
0.05
|
%
|
|
0.17
|
%
|
|||
|
Net charge-offs (recoveries)/Average loans held for investment
|
(0.06
|
)
|
|
0.04
|
|
|
0.14
|
|
|||
|
Provision for credit losses
|
$
|
—
|
|
|
$
|
2,656
|
|
|
$
|
3,743
|
|
|
Non-performing loans ("NPLs")
|
22,421
|
|
|
17,584
|
|
|
94,403
|
|
|||
|
NPLs/Total loans held for investment, excluding Warehouse Purchase Program loans
|
0.33
|
%
|
|
0.26
|
%
|
|
1.46
|
%
|
|||
|
NPLs/Total loans held for investment
|
0.29
|
|
|
0.22
|
|
|
1.21
|
|
|||
|
Non-performing assets ("NPAs")
|
$
|
23,754
|
|
|
$
|
18,282
|
|
|
$
|
102,835
|
|
|
NPAs to total assets
|
0.26
|
%
|
|
0.20
|
%
|
|
1.13
|
%
|
|||
|
NPAs/Loans held for investment and foreclosed assets, excluding Warehouse Purchase Program loans
|
0.35
|
|
|
0.27
|
|
|
1.58
|
|
|||
|
NPAs/Loans held for investment and foreclosed assets
|
0.31
|
|
|
0.23
|
|
|
1.32
|
|
|||
|
Allowance for loan losses
|
$
|
67,428
|
|
|
$
|
66,354
|
|
|
$
|
71,301
|
|
|
Allowance for loan losses/Total loans held for investment, excluding Warehouse Purchase Program loans
|
0.99
|
%
|
|
0.98
|
%
|
|
1.10
|
%
|
|||
|
Allowance for loan losses/Total loans held for investment
|
0.87
|
|
|
0.85
|
|
|
0.91
|
|
|||
|
Allowance for loan losses/Total loans held for investment, excluding acquired loans & Warehouse Purchase Program loans
1
|
1.04
|
|
|
1.03
|
|
|
1.17
|
|
|||
|
Allowance for loan losses/NPLs
|
300.74
|
|
|
377.35
|
|
|
75.53
|
|
|||
|
1
|
Excludes loans acquired in previous bank acquisitions, which were initially recorded at fair value.
|
The Company did not record a provision for credit losses for the quarter ended
December 31, 2018
, compared to provision expense of
$2.7 million
for the quarte
r
ended
September 30, 2018
and
$3.7 million
for the quarter ended
December 31, 2017
. The decrease in provision expense on a linked-quarter and year-over-year basis was primarily due to decreased net charge-offs during the quarter ended
December 31, 2018
. Net recoveries totaled
$1.1 million
for the three months ended
December 31, 2018
, compared to net charge-offs totaling
$791,000
for the three months ended
September 30, 2018
and
$2.6 million
for the three months ended
December 31, 2017
.
6
The below table shows criticized (rated "special mention") and classified (rated "substandard" or "doubtful") loans at
December 31, 2018
,
September 30, 2018
and
December 31, 2017
.
|
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
Linked-Quarter
Change
|
|
Year-over-Year
Change
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
|
Commercial real estate
|
$
|
17,322
|
|
|
$
|
16,750
|
|
|
$
|
30,656
|
|
|
$
|
572
|
|
|
$
|
(13,334
|
)
|
|
Commercial and industrial, excluding energy
|
7,582
|
|
|
7,884
|
|
|
15,496
|
|
|
(302
|
)
|
|
(7,914
|
)
|
|||||
|
Energy
|
48,434
|
|
|
51,983
|
|
|
27,665
|
|
|
(3,549
|
)
|
|
20,769
|
|
|||||
|
Consumer
|
1,289
|
|
|
1,313
|
|
|
1,409
|
|
|
(24
|
)
|
|
(120
|
)
|
|||||
|
Total criticized (all performing)
|
$
|
74,627
|
|
|
$
|
77,930
|
|
|
$
|
75,226
|
|
|
$
|
(3,303
|
)
|
|
$
|
(599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial real estate
|
$
|
1,463
|
|
|
$
|
1,757
|
|
|
$
|
3,893
|
|
|
$
|
(294
|
)
|
|
$
|
(2,430
|
)
|
|
Commercial and industrial, excluding energy
|
1,019
|
|
|
1,059
|
|
|
1,295
|
|
|
(40
|
)
|
|
(276
|
)
|
|||||
|
Energy
|
48,260
|
|
|
40,156
|
|
|
11,352
|
|
|
8,104
|
|
|
36,908
|
|
|||||
|
Consumer
|
1,445
|
|
|
1,527
|
|
|
2,823
|
|
|
(82
|
)
|
|
(1,378
|
)
|
|||||
|
Total classified performing
|
52,187
|
|
|
44,499
|
|
|
19,363
|
|
|
7,688
|
|
|
32,824
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial real estate
|
159
|
|
|
3,739
|
|
|
4,134
|
|
|
(3,580
|
)
|
|
(3,975
|
)
|
|||||
|
Commercial and industrial, excluding energy
|
968
|
|
|
5,861
|
|
|
25,579
|
|
|
(4,893
|
)
|
|
(24,611
|
)
|
|||||
|
Energy
|
15,742
|
|
|
1,317
|
|
|
58,424
|
|
|
14,425
|
|
|
(42,682
|
)
|
|||||
|
Consumer
|
5,552
|
|
|
6,667
|
|
|
6,266
|
|
|
(1,115
|
)
|
|
(714
|
)
|
|||||
|
Total classified non-performing
|
22,421
|
|
|
17,584
|
|
|
94,403
|
|
|
4,837
|
|
|
(71,982
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total classified loans
|
$
|
74,608
|
|
|
$
|
62,083
|
|
|
$
|
113,766
|
|
|
$
|
12,525
|
|
|
$
|
(39,158
|
)
|
Conference Call
The Company will host an investor conference call to review the results on Wednesday,
January 23, 2019
at 8 a.m. Central Time. Participants may pre-register for the call by visiting
http://dpregister.com/10126732
and will receive a unique PIN, which can be used when dialing in for the call. This will allow attendees to enter the call immediately. Alternatively, participants may call (toll-free) 877-513-4119 at least five minutes prior to the call to be placed into the call by an operator. International participants are asked to call 1-412-902-4148 and participants in Canada are asked to call (toll-free) 1-855-669-9657.
The call and corresponding presentation slides will be webcast live on the home page of the Company's website,
www.LegacyTexasFinancialGroup.com
. An audio replay will be available one hour after the conclusion of the call at 877-344-7529, Conference #10126732. This replay will be available until February 23, 2019.
7
About LegacyTexas Financial Group, Inc.
LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates
42
banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, please visit
www.LegacyTexasFinancialGroup.com
or
www.LegacyTexas.com
.
This document and other filings by LegacyTexas Financial Group, Inc. (the
“
Company
”
) with the Securities and Exchange Commission (the
“
SEC
”
), as well as press releases or other public or stockholder communications released by the Company, may contain forward-looking statements, including, but not limited to, (i) statements regarding the financial condition, results of operations and business of the Company, (ii) statements about the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts and (iii) other statements identified by the words or phrases “will likely result,
”
“are expected to,
”
“will continue,
”
“is anticipated,
”
“estimate,
”
“project,
”
“intends
”
or similar expressions that are intended to identify “forward-looking statements
”
, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current beliefs and expectations of the Company’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the expected cost savings, synergies and other financial benefits from acquisition or disposition transactions might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters might be greater than expected; changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; fluctuations in the price of oil, natural gas and other commodities; competition; changes in management’s business strategies; changes in the regulatory and tax environments in which the Company operates, including the impact of the “Tax Cuts and Jobs Act
”
(the “TCJA
”
) on the Company's deferred tax asset, and the anticipated impact of the TCJA on the Company's future earnings; and other factors set forth in the Company's filings with the SEC.
The factors listed above could materially affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. When considering forward-looking statements, you should keep in mind these risks and uncertainties. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. You should refer to our periodic and current reports filed with the SEC for specific risks that could cause actual results to be significantly different from those expressed or implied by any forward-looking statements.
8
LegacyTexas Financial Group, Inc. Consolidated Balance Sheets (unaudited)
|
(Dollars in thousands)
ASSETS
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
Cash and due from financial institutions
|
$
|
60,416
|
|
|
$
|
64,681
|
|
|
$
|
60,104
|
|
|
$
|
51,824
|
|
|
$
|
61,713
|
|
|
Short-term interest-bearing deposits in other financial institutions
|
208,777
|
|
|
189,634
|
|
|
199,807
|
|
|
243,080
|
|
|
231,743
|
|
|||||
|
Total cash and cash equivalents
|
269,193
|
|
|
254,315
|
|
|
259,911
|
|
|
294,904
|
|
|
293,456
|
|
|||||
|
Securities available for sale, at fair value
|
471,746
|
|
|
455,454
|
|
|
445,613
|
|
|
431,413
|
|
|
419,717
|
|
|||||
|
Securities held to maturity
|
146,046
|
|
|
145,148
|
|
|
155,252
|
|
|
156,898
|
|
|
173,509
|
|
|||||
|
Total securities
|
617,792
|
|
|
600,602
|
|
|
600,865
|
|
|
588,311
|
|
|
593,226
|
|
|||||
|
Loans held for sale
|
23,193
|
|
|
22,175
|
|
|
33,548
|
|
|
31,123
|
|
|
16,707
|
|
|||||
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans held for investment - Warehouse Purchase Program
|
960,404
|
|
|
1,054,505
|
|
|
1,291,129
|
|
|
1,019,840
|
|
|
1,320,846
|
|
|||||
|
Loans held for investment
|
6,790,723
|
|
|
6,764,052
|
|
|
6,671,139
|
|
|
6,569,123
|
|
|
6,483,192
|
|
|||||
|
Gross loans
|
7,774,320
|
|
|
7,840,732
|
|
|
7,995,816
|
|
|
7,620,086
|
|
|
7,820,745
|
|
|||||
|
Less: allowance for loan losses and deferred fees on loans held for investment
|
(57,031
|
)
|
|
(56,499
|
)
|
|
(55,321
|
)
|
|
(66,878
|
)
|
|
(64,921
|
)
|
|||||
|
Net loans
|
7,717,289
|
|
|
7,784,233
|
|
|
7,940,495
|
|
|
7,553,208
|
|
|
7,755,824
|
|
|||||
|
FHLB stock and other restricted securities, at cost
|
56,226
|
|
|
60,596
|
|
|
66,061
|
|
|
46,842
|
|
|
64,790
|
|
|||||
|
Bank-owned life insurance
|
59,036
|
|
|
58,692
|
|
|
58,345
|
|
|
57,999
|
|
|
57,684
|
|
|||||
|
Premises and equipment, net
|
73,073
|
|
|
72,291
|
|
|
70,893
|
|
|
70,427
|
|
|
69,693
|
|
|||||
|
Goodwill
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
|||||
|
Other assets
|
79,974
|
|
|
73,504
|
|
|
73,957
|
|
|
75,374
|
|
|
72,964
|
|
|||||
|
Total assets
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
|
$
|
8,865,624
|
|
|
$
|
9,086,196
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|||||||||||||
|
Non-interest-bearing demand
|
$
|
1,773,762
|
|
|
$
|
1,798,109
|
|
|
$
|
1,721,380
|
|
|
$
|
1,681,067
|
|
|
$
|
1,635,622
|
|
|
Interest-bearing demand
|
826,755
|
|
|
780,474
|
|
|
867,323
|
|
|
996,737
|
|
|
1,029,375
|
|
|||||
|
Savings and money market
|
2,455,787
|
|
|
2,562,399
|
|
|
2,580,017
|
|
|
2,707,046
|
|
|
2,735,296
|
|
|||||
|
Time
|
1,785,411
|
|
|
1,638,776
|
|
|
1,712,628
|
|
|
1,569,557
|
|
|
1,367,390
|
|
|||||
|
Total deposits
|
6,841,715
|
|
|
6,779,758
|
|
|
6,881,348
|
|
|
6,954,407
|
|
|
6,767,683
|
|
|||||
|
FHLB advances
|
825,409
|
|
|
932,317
|
|
|
1,065,941
|
|
|
604,562
|
|
|
1,043,163
|
|
|||||
|
Repurchase agreements
|
50,340
|
|
|
40,408
|
|
|
41,330
|
|
|
76,610
|
|
|
84,676
|
|
|||||
|
Subordinated debt
|
135,012
|
|
|
134,890
|
|
|
134,767
|
|
|
134,645
|
|
|
134,522
|
|
|||||
|
Accrued expenses and other liabilities
|
104,299
|
|
|
155,820
|
|
|
124,250
|
|
|
115,906
|
|
|
96,278
|
|
|||||
|
Total liabilities
|
7,956,775
|
|
|
8,043,193
|
|
|
8,247,636
|
|
|
7,886,130
|
|
|
8,126,322
|
|
|||||
|
Common stock
|
485
|
|
|
485
|
|
|
483
|
|
|
483
|
|
|
481
|
|
|||||
|
Additional paid-in capital
|
619,983
|
|
|
617,270
|
|
|
611,967
|
|
|
609,046
|
|
|
603,884
|
|
|||||
|
Retained earnings
|
491,948
|
|
|
444,848
|
|
|
409,765
|
|
|
389,653
|
|
|
370,858
|
|
|||||
|
Accumulated other comprehensive income (loss), net
|
(6,658
|
)
|
|
(11,481
|
)
|
|
(9,109
|
)
|
|
(7,899
|
)
|
|
(3,429
|
)
|
|||||
|
Unearned Employee Stock Ownership Plan (ESOP) shares
|
(11,391
|
)
|
|
(11,523
|
)
|
|
(11,656
|
)
|
|
(11,789
|
)
|
|
(11,920
|
)
|
|||||
|
Total shareholders’ equity
|
1,094,367
|
|
|
1,039,599
|
|
|
1,001,450
|
|
|
979,494
|
|
|
959,874
|
|
|||||
|
Total liabilities and shareholders’ equity
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
|
$
|
8,865,624
|
|
|
$
|
9,086,196
|
|
9
LegacyTexas Financial Group, Inc.
Consolidated Quarterly Statements of Income (unaudited)
|
|
For the Quarters Ended
|
|
Fourth Quarter 2018 Compared to:
|
||||||||||||||||||||||||||||
|
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
|
Dec 31,
2017 |
|
Third Quarter
2018
|
|
Fourth Quarter
2017
|
||||||||||||||||||
|
Interest and dividend income
|
|
(Dollars in thousands)
|
|
||||||||||||||||||||||||||||
|
Loans, including fees
|
$
|
101,031
|
|
|
$
|
102,267
|
|
|
$
|
98,570
|
|
|
$
|
90,631
|
|
|
$
|
91,334
|
|
|
$
|
(1,236
|
)
|
(1.2
|
)%
|
|
$
|
9,697
|
|
10.6
|
%
|
|
Taxable securities
|
3,463
|
|
|
3,254
|
|
|
3,132
|
|
|
2,911
|
|
|
2,819
|
|
|
209
|
|
6.4
|
|
|
644
|
|
22.8
|
|
|||||||
|
Nontaxable securities
|
595
|
|
|
614
|
|
|
641
|
|
|
675
|
|
|
700
|
|
|
(19
|
)
|
(3.1
|
)
|
|
(105
|
)
|
(15.0
|
)
|
|||||||
|
Interest-bearing deposits in other financial institutions
|
1,507
|
|
|
1,368
|
|
|
1,097
|
|
|
969
|
|
|
798
|
|
|
139
|
|
10.2
|
|
|
709
|
|
88.8
|
|
|||||||
|
FHLB and Federal Reserve Bank stock and other
|
582
|
|
|
644
|
|
|
551
|
|
|
480
|
|
|
460
|
|
|
(62
|
)
|
(9.6
|
)
|
|
122
|
|
26.5
|
|
|||||||
|
|
107,178
|
|
|
108,147
|
|
|
103,991
|
|
|
95,666
|
|
|
96,111
|
|
|
(969
|
)
|
(0.9
|
)
|
|
11,067
|
|
11.5
|
|
|||||||
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Deposits
|
16,634
|
|
|
15,077
|
|
|
13,732
|
|
|
12,032
|
|
|
10,954
|
|
|
1,557
|
|
10.3
|
|
|
5,680
|
|
51.9
|
|
|||||||
|
FHLB advances
|
4,000
|
|
|
5,198
|
|
|
4,131
|
|
|
2,680
|
|
|
2,647
|
|
|
(1,198
|
)
|
(23.0
|
)
|
|
1,353
|
|
51.1
|
|
|||||||
|
Repurchase agreements and other borrowings
|
2,245
|
|
|
2,205
|
|
|
2,199
|
|
|
2,341
|
|
|
2,311
|
|
|
40
|
|
1.8
|
|
|
(66
|
)
|
(2.9
|
)
|
|||||||
|
|
22,879
|
|
|
22,480
|
|
|
20,062
|
|
|
17,053
|
|
|
15,912
|
|
|
399
|
|
1.8
|
|
|
6,967
|
|
43.8
|
|
|||||||
|
Net interest income
|
84,299
|
|
|
85,667
|
|
|
83,929
|
|
|
78,613
|
|
|
80,199
|
|
|
(1,368
|
)
|
(1.6
|
)
|
|
4,100
|
|
5.1
|
|
|||||||
|
Provision for credit losses
|
—
|
|
|
2,656
|
|
|
17,478
|
|
|
15,663
|
|
|
3,743
|
|
|
(2,656
|
)
|
(100.0
|
)
|
|
(3,743
|
)
|
(100.0
|
)
|
|||||||
|
Net interest income after provision for credit losses
|
84,299
|
|
|
83,011
|
|
|
66,451
|
|
|
62,950
|
|
|
76,456
|
|
|
1,288
|
|
1.6
|
|
|
7,843
|
|
10.3
|
|
|||||||
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Service charges and other fees
|
9,923
|
|
|
8,626
|
|
|
8,844
|
|
|
7,927
|
|
|
8,124
|
|
|
1,297
|
|
15.0
|
|
|
1,799
|
|
22.1
|
|
|||||||
|
Net gain on sale of mortgage loans held for sale
|
1,499
|
|
|
1,597
|
|
|
1,668
|
|
|
1,809
|
|
|
1,556
|
|
|
(98
|
)
|
(6.1
|
)
|
|
(57
|
)
|
(3.7
|
)
|
|||||||
|
Bank-owned life insurance income
|
482
|
|
|
482
|
|
|
479
|
|
|
447
|
|
|
430
|
|
|
—
|
|
—
|
|
|
52
|
|
12.1
|
|
|||||||
|
Net gain (loss) on securities transactions
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
10
|
|
100.0
|
|
|
—
|
|
—
|
|
|||||||
|
Gain (loss) on sale and disposition of assets
|
(56
|
)
|
|
977
|
|
|
(153
|
)
|
|
2,213
|
|
|
(3,480
|
)
|
|
(1,033
|
)
|
N/M
|
|
3,424
|
|
98.4
|
|
||||||||
|
Other
|
416
|
|
|
1,555
|
|
|
14
|
|
|
630
|
|
|
271
|
|
|
(1,139
|
)
|
(73.2
|
)
|
|
145
|
|
53.5
|
|
|||||||
|
|
12,264
|
|
|
13,227
|
|
|
10,852
|
|
|
12,898
|
|
|
6,901
|
|
|
(963
|
)
|
(7.3
|
)
|
|
5,363
|
|
77.7
|
|
|||||||
10
|
|
For the Quarters Ended
|
|
Fourth Quarter 2018 Compared to:
|
||||||||||||||||||||||||||||
|
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
|
Dec 31,
2017 |
|
Third Quarter
2018
|
|
Fourth Quarter
2017
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Non-interest expense
|
|
(Dollars in thousands)
|
|
||||||||||||||||||||||||||||
|
Salaries and employee benefits
|
23,728
|
|
|
25,053
|
|
|
24,313
|
|
|
27,076
|
|
|
23,126
|
|
|
(1,325
|
)
|
(5.3
|
)
|
|
602
|
|
2.6
|
|
|||||||
|
Advertising
|
1,301
|
|
|
824
|
|
|
1,358
|
|
|
888
|
|
|
1,402
|
|
|
477
|
|
57.9
|
|
|
(101
|
)
|
(7.2
|
)
|
|||||||
|
Occupancy and equipment
|
3,843
|
|
|
3,960
|
|
|
3,980
|
|
|
3,860
|
|
|
3,776
|
|
|
(117
|
)
|
(3.0
|
)
|
|
67
|
|
1.8
|
|
|||||||
|
Outside professional services
|
2,021
|
|
|
1,151
|
|
|
1,382
|
|
|
1,250
|
|
|
1,300
|
|
|
870
|
|
75.6
|
|
|
721
|
|
55.5
|
|
|||||||
|
Regulatory assessments
|
886
|
|
|
750
|
|
|
731
|
|
|
1,154
|
|
|
1,212
|
|
|
136
|
|
18.1
|
|
|
(326
|
)
|
(26.9
|
)
|
|||||||
|
Data processing
|
6,168
|
|
|
5,362
|
|
|
5,145
|
|
|
4,703
|
|
|
4,737
|
|
|
806
|
|
15.0
|
|
|
1,431
|
|
30.2
|
|
|||||||
|
Office operations
|
2,249
|
|
|
2,232
|
|
|
2,224
|
|
|
2,300
|
|
|
2,180
|
|
|
17
|
|
0.8
|
|
|
69
|
|
3.2
|
|
|||||||
|
Other
|
2,672
|
|
|
2,860
|
|
|
3,058
|
|
|
2,648
|
|
|
2,975
|
|
|
(188
|
)
|
(6.6
|
)
|
|
(303
|
)
|
(10.2
|
)
|
|||||||
|
|
42,868
|
|
|
42,192
|
|
|
42,191
|
|
|
43,879
|
|
|
40,708
|
|
|
676
|
|
1.6
|
|
|
2,160
|
|
5.3
|
|
|||||||
|
Income before income tax expense (benefit)
|
53,695
|
|
|
54,046
|
|
|
35,112
|
|
|
31,969
|
|
|
42,649
|
|
|
(351
|
)
|
(0.6
|
)
|
|
11,046
|
|
25.9
|
|
|||||||
|
Income tax expense (benefit)
|
(4,074
|
)
|
|
11,225
|
|
|
7,275
|
|
|
6,207
|
|
|
27,989
|
|
|
(15,299
|
)
|
(136.3
|
)
|
|
(32,063
|
)
|
(114.6
|
)
|
|||||||
|
Net income
|
$
|
57,769
|
|
|
$
|
42,821
|
|
|
$
|
27,837
|
|
|
$
|
25,762
|
|
|
$
|
14,660
|
|
|
$
|
14,948
|
|
34.9
|
%
|
|
$
|
43,109
|
|
294.1
|
%
|
N/M - Not meaningful
11
LegacyTexas Financial Group, Inc.
Selected Quarterly Financial Highlights (unaudited)
|
|
At or For the Quarters Ended
|
||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
||||||
|
SHARE DATA:
|
(Dollars in thousands, except per share amounts)
|
||||||||||
|
Weighted average common shares outstanding- basic
|
47,159,578
|
|
|
47,105,655
|
|
|
46,729,160
|
|
|||
|
Weighted average common shares outstanding- diluted
|
47,714,421
|
|
|
47,755,441
|
|
|
47,290,308
|
|
|||
|
Shares outstanding at end of period
|
48,505,261
|
|
|
48,491,169
|
|
|
48,117,390
|
|
|||
|
Income available to common shareholders
1
|
$
|
57,534
|
|
|
$
|
42,672
|
|
|
$
|
14,613
|
|
|
Basic earnings per common share
|
1.22
|
|
|
0.91
|
|
|
0.31
|
|
|||
|
Basic core (non-GAAP) earnings per common share
2
|
0.91
|
|
|
0.92
|
|
|
0.60
|
|
|||
|
Diluted earnings per common share
|
1.21
|
|
|
0.89
|
|
|
0.31
|
|
|||
|
Dividends declared per share
|
0.22
|
|
|
0.16
|
|
|
0.16
|
|
|||
|
Total shareholders' equity
|
1,094,367
|
|
|
1,039,599
|
|
|
959,874
|
|
|||
|
Common shareholders' equity per share (book value per share)
|
22.56
|
|
|
21.44
|
|
|
19.95
|
|
|||
|
Tangible book value per share - Non-GAAP
2
|
18.88
|
|
|
17.75
|
|
|
16.23
|
|
|||
|
Market value per share for the quarter:
|
|
|
|
|
|
||||||
|
High
|
43.59
|
|
|
46.86
|
|
|
43.03
|
|
|||
|
Low
|
30.46
|
|
|
38.53
|
|
|
36.73
|
|
|||
|
Close
|
32.09
|
|
|
42.60
|
|
|
42.21
|
|
|||
|
KEY RATIOS:
|
|
|
|
|
|
||||||
|
Return on average common shareholders' equity
|
21.75
|
%
|
|
16.76
|
%
|
|
6.09
|
%
|
|||
|
Core (non-GAAP) return on average common shareholders' equity
2
|
16.07
|
|
|
16.90
|
|
|
11.69
|
|
|||
|
Return on average assets
|
2.61
|
|
|
1.87
|
|
|
0.66
|
|
|||
|
Core (non-GAAP) return on average assets
2
|
1.93
|
|
|
1.88
|
|
|
1.27
|
|
|||
|
Efficiency ratio (GAAP basis)
|
44.39
|
|
|
42.66
|
|
|
46.74
|
|
|||
|
Core (non-GAAP) efficiency ratio
2
|
44.13
|
|
|
42.46
|
|
|
46.74
|
|
|||
|
Estimated Tier 1 common equity risk-based capital ratio
3
|
11.05
|
|
|
10.46
|
|
|
9.40
|
|
|||
|
Estimated total risk-based capital ratio
3
|
13.48
|
|
|
12.88
|
|
|
11.87
|
|
|||
|
Estimated Tier 1 risk-based capital ratio
3
|
11.19
|
|
|
10.60
|
|
|
9.54
|
|
|||
|
Estimated Tier 1 leverage ratio
3
|
10.76
|
|
|
9.83
|
|
|
9.17
|
|
|||
|
Total equity to total assets
|
12.09
|
|
|
11.45
|
|
|
10.56
|
|
|||
|
Tangible equity to tangible assets - Non-GAAP
2
|
10.32
|
|
|
9.67
|
|
|
8.77
|
|
|||
|
Number of employees- full-time equivalent
|
866
|
|
|
859
|
|
|
853
|
|
|||
|
1
|
Net of distributed and undistributed earnings to participating securities.
|
|
2
|
See the section labeled "Supplemental Information - Non-GAAP Financial Measures" at the end of this document.
|
|
3
|
Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.
|
12
LegacyTexas Financial Group, Inc.
Selected Full Year Financial Highlights (unaudited)
|
|
At or For the Years Ended
|
||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
SHARE DATA:
|
(Dollars in thousands, except per share amounts)
|
||||||
|
Basic earnings per common share
|
$
|
3.27
|
|
|
$
|
1.91
|
|
|
Basic core (non-GAAP) earnings per common share
1
|
2.94
|
|
|
2.19
|
|
||
|
Diluted earnings per common share
|
3.23
|
|
|
1.89
|
|
||
|
Dividends declared per share
|
0.70
|
|
|
0.61
|
|
||
|
KEY RATIOS:
|
|
|
|
||||
|
Return on average common shareholders' equity
|
15.22
|
%
|
|
9.62
|
%
|
||
|
Core (non-GAAP) return on average common shareholders' equity
1
|
13.65
|
|
|
10.96
|
|
||
|
Return on average assets
|
1.73
|
|
|
1.04
|
|
||
|
Core (non-GAAP) return on average assets
1
|
1.55
|
|
|
1.18
|
|
||
|
Efficiency ratio (GAAP basis)
|
44.83
|
|
|
45.17
|
|
||
|
Core (non-GAAP) efficiency ratio
1
|
44.77
|
|
|
45.38
|
|
||
1
See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.
13
LegacyTexas Financial Group, Inc.
Selected Loan Data (unaudited)
|
|
At or for the Quarter Ended
|
||||||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
Loans held for investment:
|
(Dollars in thousands)
|
||||||||||||||||||
|
Commercial real estate
|
$
|
3,026,754
|
|
|
$
|
3,012,352
|
|
|
$
|
3,021,148
|
|
|
$
|
3,053,750
|
|
|
$
|
3,019,339
|
|
|
Warehouse Purchase Program
|
960,404
|
|
|
1,054,505
|
|
|
1,291,129
|
|
|
1,019,840
|
|
|
1,320,846
|
|
|||||
|
Commercial and industrial
|
2,057,791
|
|
|
2,111,510
|
|
|
2,051,955
|
|
|
1,967,443
|
|
|
1,927,049
|
|
|||||
|
Construction and land
|
270,629
|
|
|
278,278
|
|
|
265,745
|
|
|
252,213
|
|
|
277,864
|
|
|||||
|
Consumer real estate
|
1,390,378
|
|
|
1,318,038
|
|
|
1,287,703
|
|
|
1,252,433
|
|
|
1,213,434
|
|
|||||
|
Other consumer
|
45,171
|
|
|
43,874
|
|
|
44,588
|
|
|
43,284
|
|
|
45,506
|
|
|||||
|
Gross loans held for investment
|
$
|
7,751,127
|
|
|
$
|
7,818,557
|
|
|
$
|
7,962,268
|
|
|
$
|
7,588,963
|
|
|
$
|
7,804,038
|
|
|
Non-performing assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial real estate
|
$
|
159
|
|
|
$
|
3,739
|
|
|
$
|
3,656
|
|
|
$
|
3,748
|
|
|
$
|
4,134
|
|
|
Commercial and industrial
|
16,710
|
|
|
7,178
|
|
|
10,225
|
|
|
40,455
|
|
|
84,003
|
|
|||||
|
Consumer real estate
|
5,506
|
|
|
6,617
|
|
|
5,652
|
|
|
5,548
|
|
|
6,190
|
|
|||||
|
Other consumer
|
46
|
|
|
50
|
|
|
77
|
|
|
85
|
|
|
76
|
|
|||||
|
Total non-performing loans
|
22,421
|
|
|
17,584
|
|
|
19,610
|
|
|
49,836
|
|
|
94,403
|
|
|||||
|
Foreclosed assets
|
1,333
|
|
|
698
|
|
|
7,341
|
|
|
8,160
|
|
|
8,432
|
|
|||||
|
Total non-performing assets
|
$
|
23,754
|
|
|
$
|
18,282
|
|
|
$
|
26,951
|
|
|
$
|
57,996
|
|
|
$
|
102,835
|
|
|
Total non-performing assets to total assets
|
0.26
|
%
|
|
0.20
|
%
|
|
0.29
|
%
|
|
0.65
|
%
|
|
1.13
|
%
|
|||||
|
Total non-performing loans to total loans held for investment, excluding Warehouse Purchase Program loans
|
0.33
|
%
|
|
0.26
|
%
|
|
0.29
|
%
|
|
0.76
|
%
|
|
1.46
|
%
|
|||||
|
Total non-performing loans to total loans held for investment
|
0.29
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
|
0.66
|
%
|
|
1.21
|
%
|
|||||
|
Allowance for loan losses to non-performing loans
|
300.74
|
%
|
|
377.35
|
%
|
|
328.63
|
%
|
|
149.51
|
%
|
|
75.53
|
%
|
|||||
|
Allowance for loan losses to total loans held for investment, excluding Warehouse Purchase Program loans
|
0.99
|
%
|
|
0.98
|
%
|
|
0.97
|
%
|
|
1.13
|
%
|
|
1.10
|
%
|
|||||
|
Allowance for loan losses to total loans held for investment
|
0.87
|
%
|
|
0.85
|
%
|
|
0.81
|
%
|
|
0.98
|
%
|
|
0.91
|
%
|
|||||
|
Allowance for loan losses to total loans held for investment, excluding acquired loans and Warehouse Purchase Program loans
1
|
1.04
|
%
|
|
1.03
|
%
|
|
1.02
|
%
|
|
1.20
|
%
|
|
1.17
|
%
|
|||||
14
|
1
|
Excludes loans acquired in previous bank acquisitions, which were initially recorded at fair value.
|
|
2
|
Non-performing TDRs are included in the non-performing assets reported above.
|
15
LegacyTexas Financial Group, Inc.
Average Balances and Yields/Rates (unaudited)
|
|
For the Quarters Ended
|
||||||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
Loans:
|
(Dollars in thousands)
|
||||||||||||||||||
|
Commercial real estate
|
$
|
2,977,919
|
|
|
$
|
3,016,889
|
|
|
$
|
3,055,139
|
|
|
$
|
2,993,024
|
|
|
$
|
3,030,778
|
|
|
Warehouse Purchase Program
|
864,012
|
|
|
1,097,879
|
|
|
1,075,262
|
|
|
965,320
|
|
|
1,162,890
|
|
|||||
|
Commercial and industrial
|
2,024,676
|
|
|
2,088,318
|
|
|
2,002,490
|
|
|
1,904,515
|
|
|
1,864,686
|
|
|||||
|
Construction and land
|
272,631
|
|
|
271,829
|
|
|
260,560
|
|
|
270,899
|
|
|
287,965
|
|
|||||
|
Consumer real estate
|
1,327,912
|
|
|
1,295,353
|
|
|
1,265,751
|
|
|
1,227,556
|
|
|
1,206,371
|
|
|||||
|
Other consumer
|
44,559
|
|
|
44,508
|
|
|
43,779
|
|
|
44,891
|
|
|
46,094
|
|
|||||
|
Less: deferred fees and allowance for loan loss
|
(56,899
|
)
|
|
(55,974
|
)
|
|
(66,746
|
)
|
|
(62,666
|
)
|
|
(65,612
|
)
|
|||||
|
Total loans held for investment
|
7,454,810
|
|
|
7,758,802
|
|
|
7,636,235
|
|
|
7,343,539
|
|
|
7,533,172
|
|
|||||
|
Loans held for sale
|
24,279
|
|
|
26,121
|
|
|
29,378
|
|
|
20,988
|
|
|
20,642
|
|
|||||
|
Securities
|
667,939
|
|
|
678,483
|
|
|
667,183
|
|
|
648,534
|
|
|
648,917
|
|
|||||
|
Overnight deposits
|
266,434
|
|
|
272,670
|
|
|
233,335
|
|
|
239,936
|
|
|
223,608
|
|
|||||
|
Total interest-earning assets
|
$
|
8,413,462
|
|
|
$
|
8,736,076
|
|
|
$
|
8,566,131
|
|
|
$
|
8,252,997
|
|
|
$
|
8,426,339
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest-bearing demand
|
$
|
775,921
|
|
|
$
|
760,889
|
|
|
$
|
954,960
|
|
|
$
|
970,998
|
|
|
$
|
925,506
|
|
|
Savings and money market
|
2,532,732
|
|
|
2,654,990
|
|
|
2,578,205
|
|
|
2,745,192
|
|
|
2,911,726
|
|
|||||
|
Time
|
1,703,421
|
|
|
1,683,475
|
|
|
1,632,697
|
|
|
1,433,307
|
|
|
1,353,467
|
|
|||||
|
FHLB advances and other borrowings
|
851,084
|
|
|
1,154,079
|
|
|
1,018,945
|
|
|
877,502
|
|
|
1,007,747
|
|
|||||
|
Total interest-bearing liabilities
|
$
|
5,863,158
|
|
|
$
|
6,253,433
|
|
|
$
|
6,184,807
|
|
|
$
|
6,026,999
|
|
|
$
|
6,198,446
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total assets
|
$
|
8,850,435
|
|
|
$
|
9,167,607
|
|
|
$
|
8,996,036
|
|
|
$
|
8,682,461
|
|
|
$
|
8,865,517
|
|
|
Non-interest-bearing demand deposits
|
$
|
1,778,681
|
|
|
$
|
1,752,095
|
|
|
$
|
1,694,082
|
|
|
$
|
1,576,792
|
|
|
$
|
1,568,665
|
|
|
Total deposits
|
$
|
6,790,754
|
|
|
$
|
6,851,449
|
|
|
$
|
6,859,944
|
|
|
$
|
6,726,289
|
|
|
$
|
6,759,364
|
|
|
Total shareholders' equity
|
$
|
1,062,331
|
|
|
$
|
1,022,032
|
|
|
$
|
994,574
|
|
|
$
|
973,187
|
|
|
$
|
963,512
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
16
|
|
For the Quarters Ended
|
||||||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
Yields/Rates:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial real estate
|
5.20
|
%
|
|
5.15
|
%
|
|
5.09
|
%
|
|
5.09
|
%
|
|
5.05
|
%
|
|||||
|
Warehouse Purchase Program
|
4.81
|
%
|
|
4.68
|
%
|
|
4.53
|
%
|
|
4.23
|
%
|
|
3.95
|
%
|
|||||
|
Commercial and industrial
|
6.00
|
%
|
|
5.78
|
%
|
|
5.71
|
%
|
|
5.27
|
%
|
|
4.89
|
%
|
|||||
|
Construction and land
|
5.87
|
%
|
|
5.41
|
%
|
|
5.35
|
%
|
|
5.17
|
%
|
|
5.04
|
%
|
|||||
|
Consumer real estate
|
4.81
|
%
|
|
4.67
|
%
|
|
4.66
|
%
|
|
4.56
|
%
|
|
4.54
|
%
|
|||||
|
Other consumer
|
5.80
|
%
|
|
5.81
|
%
|
|
5.74
|
%
|
|
5.62
|
%
|
|
5.67
|
%
|
|||||
|
Total loans held for investment
|
5.37
|
%
|
|
5.22
|
%
|
|
5.16
|
%
|
|
4.98
|
%
|
|
4.81
|
%
|
|||||
|
Loans held for sale
|
4.71
|
%
|
|
4.52
|
%
|
|
4.46
|
%
|
|
4.04
|
%
|
|
3.92
|
%
|
|||||
|
Securities
|
2.78
|
%
|
|
2.66
|
%
|
|
2.59
|
%
|
|
2.51
|
%
|
|
2.45
|
%
|
|||||
|
Overnight deposits
|
2.24
|
%
|
|
1.99
|
%
|
|
1.89
|
%
|
|
1.64
|
%
|
|
1.42
|
%
|
|||||
|
Total interest-earning assets
|
5.06
|
%
|
|
4.92
|
%
|
|
4.87
|
%
|
|
4.69
|
%
|
|
4.53
|
%
|
|||||
|
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest-bearing demand
|
0.69
|
%
|
|
0.65
|
%
|
|
0.88
|
%
|
|
0.81
|
%
|
|
0.71
|
%
|
|||||
|
Savings and money market
|
1.02
|
%
|
|
0.92
|
%
|
|
0.79
|
%
|
|
0.75
|
%
|
|
0.70
|
%
|
|||||
|
Time
|
2.05
|
%
|
|
1.80
|
%
|
|
1.62
|
%
|
|
1.43
|
%
|
|
1.21
|
%
|
|||||
|
FHLB advances and other borrowings
|
2.91
|
%
|
|
2.55
|
%
|
|
2.49
|
%
|
|
2.32
|
%
|
|
1.95
|
%
|
|||||
|
Total interest-bearing liabilities
|
1.55
|
%
|
|
1.43
|
%
|
|
1.30
|
%
|
|
1.15
|
%
|
|
1.02
|
%
|
|||||
|
Net interest spread
|
3.51
|
%
|
|
3.49
|
%
|
|
3.57
|
%
|
|
3.54
|
%
|
|
3.51
|
%
|
|||||
|
Net interest margin
|
3.98
|
%
|
|
3.90
|
%
|
|
3.93
|
%
|
|
3.85
|
%
|
|
3.78
|
%
|
|||||
|
Cost of deposits (including non-interest-bearing demand)
|
0.97
|
%
|
|
0.87
|
%
|
|
0.80
|
%
|
|
0.73
|
%
|
|
0.64
|
%
|
|||||
17
LegacyTexas Financial Group, Inc.
Supplemental Information- Non-GAAP Financial Measures
(unaudited)
|
|
At or For the Quarters Ended
|
||||||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||
|
Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (calculated net of estimated tax rate of 21%, except as otherwise noted)
|
|
|
|
|
|||||||||||||||
|
GAAP net income available to common shareholders
1
|
$
|
57,534
|
|
|
$
|
42,672
|
|
|
$
|
27,770
|
|
|
$
|
25,687
|
|
|
$
|
14,613
|
|
|
Distributed and undistributed earnings to participating securities
1
|
235
|
|
|
149
|
|
|
67
|
|
|
75
|
|
|
47
|
|
|||||
|
GAAP net income
|
57,769
|
|
|
42,821
|
|
|
27,837
|
|
|
25,762
|
|
|
14,660
|
|
|||||
|
(Gain) loss on one-time tax adjustments
2
|
(15,289
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,493
|
|
|||||
|
Expenses related to above tax adjustments
|
202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
(Gain) loss on sale of branch locations and land
|
—
|
|
|
372
|
|
|
126
|
|
|
—
|
|
|
—
|
|
|||||
|
Insurance settlement proceeds from pre-acquisition fraud
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,778
|
)
|
|
—
|
|
|||||
|
One-time employee bonus related to tax law change
|
—
|
|
|
—
|
|
|
—
|
|
|
537
|
|
|
—
|
|
|||||
|
Core (non-GAAP) net income
|
$
|
42,682
|
|
|
$
|
43,193
|
|
|
$
|
27,963
|
|
|
$
|
24,521
|
|
|
$
|
28,153
|
|
|
Average shares for basic earnings per share
|
47,159,578
|
|
|
47,105,655
|
|
|
47,000,405
|
|
|
46,872,333
|
|
|
46,729,160
|
|
|||||
|
Basic GAAP earnings per share
|
$
|
1.22
|
|
|
$
|
0.91
|
|
|
$
|
0.59
|
|
|
$
|
0.55
|
|
|
$
|
0.31
|
|
|
Basic core (non-GAAP) earnings per share
|
$
|
0.91
|
|
|
$
|
0.92
|
|
|
$
|
0.59
|
|
|
$
|
0.52
|
|
|
$
|
0.60
|
|
|
Average shares for diluted earnings per share
|
47,714,421
|
|
|
47,755,441
|
|
|
47,618,157
|
|
|
47,564,587
|
|
|
47,290,308
|
|
|||||
|
Diluted GAAP earnings per share
|
$
|
1.21
|
|
|
$
|
0.89
|
|
|
$
|
0.58
|
|
|
$
|
0.54
|
|
|
$
|
0.31
|
|
|
Diluted core (non-GAAP) earnings per share
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
0.59
|
|
|
$
|
0.52
|
|
|
$
|
0.60
|
|
|
Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Non-interest Expense (gross of tax)
|
|
|
|
|
|
|
|||||||||||||
|
GAAP non-interest income
|
$
|
12,264
|
|
|
$
|
13,227
|
|
|
$
|
10,852
|
|
|
$
|
12,898
|
|
|
$
|
6,901
|
|
|
Insurance settlement proceeds from pre-acquisition fraud
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,250
|
)
|
|
—
|
|
|||||
|
(Gain) loss on sale of branch locations and land
|
—
|
|
|
471
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|||||
|
Core (non-GAAP) non-interest income
|
$
|
12,264
|
|
|
$
|
13,698
|
|
|
$
|
11,012
|
|
|
$
|
10,648
|
|
|
$
|
6,901
|
|
|
GAAP non-interest expense
|
$
|
42,868
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
|
$
|
43,879
|
|
|
$
|
40,708
|
|
|
Expenses related to above tax adjustments
|
(256
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
One-time employee bonus related to tax law change
|
—
|
|
|
—
|
|
|
—
|
|
|
(679
|
)
|
|
—
|
|
|||||
|
Core (non-GAAP) non-interest expense
|
$
|
42,612
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
|
$
|
43,200
|
|
|
$
|
40,708
|
|
1
Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B.
2
These one-time income tax adjustments consist of an adjustment to the Company's deferred tax asset (recorded in the 2017 period), as well as a benefit related to tax rate changes and the favorable outcome of the Company's change in its tax method of accounting for its loan portfolio (recorded in the 2018 period), all related to the December 22, 2017 enactment of the Tax Cuts and Jobs Act.
18
|
|
At or For the Quarters Ended
|
||||||||||||||||||
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
||||||||||
|
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax)
|
|
(Dollars in thousands, except per share amounts)
|
|||||||||||||||||
|
GAAP efficiency ratio:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-interest expense
|
$
|
42,868
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
|
$
|
43,879
|
|
|
$
|
40,708
|
|
|
Net interest income plus non-interest income
|
96,563
|
|
|
98,894
|
|
|
94,781
|
|
|
91,511
|
|
|
87,100
|
|
|||||
|
Efficiency ratio- GAAP basis
|
44.39
|
%
|
|
42.66
|
%
|
|
44.51
|
%
|
|
47.95
|
%
|
|
46.74
|
%
|
|||||
|
Core (non-GAAP) efficiency ratio:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Core (non-GAAP) non-interest expense
|
$
|
42,612
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
|
$
|
43,200
|
|
|
$
|
40,708
|
|
|
Net interest income plus core (non-GAAP) non-interest income
|
96,563
|
|
|
99,365
|
|
|
94,941
|
|
|
89,261
|
|
|
87,100
|
|
|||||
|
Efficiency ratio- core (non-GAAP) basis
|
44.13
|
%
|
|
42.46
|
%
|
|
44.44
|
%
|
|
48.40
|
%
|
|
46.74
|
%
|
|||||
|
Calculation of Tangible Book Value per Share:
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total shareholders' equity
|
$
|
1,094,367
|
|
|
$
|
1,039,599
|
|
|
$
|
1,001,450
|
|
|
$
|
979,494
|
|
|
$
|
959,874
|
|
|
Less: Goodwill
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|||||
|
Identifiable intangible assets, net
|
(245
|
)
|
|
(279
|
)
|
|
(313
|
)
|
|
(347
|
)
|
|
(402
|
)
|
|||||
|
Total tangible shareholders' equity
|
$
|
915,563
|
|
|
$
|
860,761
|
|
|
$
|
822,578
|
|
|
$
|
800,588
|
|
|
$
|
780,913
|
|
|
Shares outstanding at end of period
|
48,505,261
|
|
|
48,491,169
|
|
|
48,311,220
|
|
|
48,264,966
|
|
|
48,117,390
|
|
|||||
|
Book value per share- GAAP
|
$
|
22.56
|
|
|
$
|
21.44
|
|
|
$
|
20.73
|
|
|
$
|
20.29
|
|
|
$
|
19.95
|
|
|
Tangible book value per share- Non-GAAP
|
18.88
|
|
|
17.75
|
|
|
17.03
|
|
|
16.59
|
|
|
16.23
|
|
|||||
|
Calculation of Tangible Equity to Tangible Assets:
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total assets
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
|
$
|
8,865,624
|
|
|
$
|
9,086,196
|
|
|
Less: Goodwill
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|
(178,559
|
)
|
|||||
|
Identifiable intangible assets, net
|
(245
|
)
|
|
(279
|
)
|
|
(313
|
)
|
|
(347
|
)
|
|
(402
|
)
|
|||||
|
Total tangible assets
|
$
|
8,872,338
|
|
|
$
|
8,903,954
|
|
|
$
|
9,070,214
|
|
|
$
|
8,686,718
|
|
|
$
|
8,907,235
|
|
|
Equity to assets- GAAP
|
12.09
|
%
|
|
11.45
|
%
|
|
10.83
|
%
|
|
11.05
|
%
|
|
10.56
|
%
|
|||||
|
Tangible equity to tangible assets- Non-GAAP
|
10.32
|
|
|
9.67
|
|
|
9.07
|
|
|
9.22
|
|
|
8.77
|
|
|||||
|
Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and Core)
|
|||||||||||||||||||
|
Net income
|
$
|
57,769
|
|
|
$
|
42,821
|
|
|
$
|
27,837
|
|
|
$
|
25,762
|
|
|
$
|
14,660
|
|
|
Core (non-GAAP) net income
|
42,682
|
|
|
43,193
|
|
|
27,963
|
|
|
24,521
|
|
|
28,153
|
|
|||||
|
Average total equity
|
1,062,331
|
|
|
1,022,032
|
|
|
994,574
|
|
|
973,187
|
|
|
963,512
|
|
|||||
|
Average total assets
|
8,850,435
|
|
|
9,167,607
|
|
|
8,996,036
|
|
|
8,682,461
|
|
|
8,865,517
|
|
|||||
|
Return on average common shareholders' equity
|
21.75
|
%
|
|
16.76
|
%
|
|
11.20
|
%
|
|
10.59
|
%
|
|
6.09
|
%
|
|||||
|
Core (non-GAAP) return on average common shareholders' equity
|
16.07
|
|
|
16.90
|
|
|
11.25
|
|
|
10.08
|
|
|
11.69
|
|
|||||
|
Return on average assets
|
2.61
|
|
|
1.87
|
|
|
1.24
|
|
|
1.19
|
|
|
0.66
|
|
|||||
|
Core (non-GAAP) return on average assets
|
1.93
|
|
|
1.88
|
|
|
1.24
|
|
|
1.13
|
|
|
1.27
|
|
|||||
19
|
|
At or For the Years Ended
|
||||||
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (net of estimated tax, except as otherwise noted)
|
(Dollars in thousands, except per share amounts)
|
||||||
|
GAAP net income available to common shareholders
1
|
$
|
153,692
|
|
|
$
|
89,176
|
|
|
Distributed and undistributed earnings to participating securities
1
|
497
|
|
|
318
|
|
||
|
GAAP net income
|
154,189
|
|
|
89,494
|
|
||
|
(Gain) loss on one-time tax adjustments
2
|
(15,289
|
)
|
|
13,493
|
|
||
|
Expenses related to above tax adjustments
3
|
202
|
|
|
—
|
|
||
|
(Gain) loss on sale of branch locations and land
3
|
498
|
|
|
(1,084
|
)
|
||
|
Insurance settlement proceeds from pre-acquisition fraud
3
|
(1,778
|
)
|
|
—
|
|
||
|
One-time employee bonus related to tax law change
3
|
537
|
|
|
—
|
|
||
|
Core (non-GAAP) net income
|
$
|
138,359
|
|
|
$
|
101,903
|
|
|
Average shares for basic earnings per share
|
47,035,475
|
|
|
46,611,780
|
|
||
|
Basic (GAAP) earnings per share
|
$
|
3.27
|
|
|
$
|
1.91
|
|
|
Basic core (non-GAAP) earnings per share
|
$
|
2.94
|
|
|
$
|
2.19
|
|
|
Average shares for diluted earnings per share
|
47,653,726
|
|
|
47,138,518
|
|
||
|
Diluted GAAP earnings per share
|
$
|
3.23
|
|
|
$
|
1.89
|
|
|
Diluted core (non-GAAP) earnings per share
|
$
|
2.90
|
|
|
$
|
2.16
|
|
|
|
|
|
|
||||
|
Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income and Non-interest Expense (gross of tax)
|
|
|
|||||
|
GAAP non-interest income
|
$
|
49,241
|
|
|
$
|
43,582
|
|
|
Insurance settlement proceeds from pre-acquisition fraud
|
(2,250
|
)
|
|
—
|
|
||
|
(Gain) loss on sale of branch locations and land
|
631
|
|
|
(1,669
|
)
|
||
|
Core (non-GAAP) non-interest income
|
$
|
47,622
|
|
|
$
|
41,913
|
|
|
GAAP non-interest expense
|
$
|
171,130
|
|
|
$
|
160,344
|
|
|
Expenses related to above tax adjustments
|
(256
|
)
|
|
—
|
|
||
|
One-time employee bonus related to tax law change
|
(679
|
)
|
|
—
|
|
||
|
Core (non-GAAP) non-interest expense
|
$
|
170,195
|
|
|
$
|
160,344
|
|
|
|
|
|
|
||||
|
Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax)
|
|
|
|||||
|
Net interest income
|
$
|
332,508
|
|
|
$
|
311,431
|
|
|
GAAP efficiency ratio:
|
|
|
|
||||
|
Non-interest expense
|
$
|
171,130
|
|
|
$
|
160,344
|
|
|
Net interest income plus non-interest income
|
381,749
|
|
|
355,013
|
|
||
|
Efficiency ratio- GAAP basis
|
44.83
|
%
|
|
45.17
|
%
|
||
|
Core (non-GAAP) efficiency ratio:
|
|
|
|
||||
|
Core (non-GAAP) non-interest expense
|
$
|
170,195
|
|
|
$
|
160,344
|
|
|
Net interest income plus core (non-GAAP) non-interest income
|
380,130
|
|
|
353,344
|
|
||
|
Efficiency ratio- core (non-GAAP) basis
|
44.77
|
%
|
|
45.38
|
%
|
||
|
1
|
Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B.
|
|
2
|
These one-time income tax adjustments consist of an adjustment to the Company's deferred tax asset (recorded in the 2017 period), as well as a benefit related to tax rate changes and the favorable outcome of the Company's change in its tax method of accounting for its loan portfolio (recorded in the 2018 period), all related to the December 22, 2017 enactment of the Tax Cuts and Jobs Act.
|
|
3
|
2018 amounts calculated net of estimated tax using a tax rate of 21%; 2017 amounts calculated net of estimated tax using a tax rate of 35%.
|
20
21
