Third Quarter 2024 Highlights:
- Net income of $22.4 million, $0.79 per diluted share (excluding merger costs, $23.7 million, $0.84 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
- Net interest margin of 4.10%
- Return on average total assets of 1.13% (excluding merger costs, 1.19%, see the “Non-GAAP Financial Measures and Reconciliations” below)
- Return on average stockholders’ equity of 8.79% (excluding merger costs, 9.27%, see the “Non-GAAP Financial Measures and Reconciliations” below)
- Loan growth of 6.7% annualized
- Deposit growth of 1.8% annualized
- 22.5% noninterest income to total revenue1
FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $22.4 million for the third quarter of 2024 compared to net income of $25.2 million for the third quarter of 2023. Earnings per diluted share were $0.79 for the third quarter of 2024 compared to $1.00 for the third quarter of 2023. Earnings for the third quarter of 2024 were negatively impacted by $1.2 million of merger costs, net of tax, or $0.05 per diluted share.
Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “Our results this quarter continue to demonstrate the underlying strength of our core franchise. Our revenue growth was rooted in a very strong net interest margin of 4.10% and we realized growth in both loans and deposits. We remain focused on continuing to responsibly grow the business and expand our client relationships across all of the markets we serve through our expansive suite of banking services. We appreciate all the hard work of our teams across the organization this year.”
Third Quarter 2024 Results
Net income totaled $22.4 million, or $0.79 per diluted share, for the third quarter of 2024, compared to $24.6 million, or $0.88 per diluted share, for the prior quarter. Net income was negatively impacted by $1.2 million in merger costs, net of tax, or $0.05 per diluted share, compared to $0.6 million in merger costs, net of tax, or $0.02 per diluted share, for the prior quarter. The return on average total assets was 1.13% for the third quarter of 2024, compared to 1.26% for the prior quarter, and the return on average stockholders’ equity was 8.79% for the third quarter of 2024, compared to 10.03% for the prior quarter. Third quarter of 2024 merger costs, net of tax, negatively impacted return on average total assets by 0.06% and return on average stockholders’ equity by 0.48%. Second quarter of 2024 merger costs, net of tax, negatively impacted return on average total assets by 0.03% and return on average stockholders’ equity by 0.25%.
Net Interest Income and Net Interest Margin
Net interest income totaled $76.2 million for the third quarter of 2024, an increase of $3.3 million compared to the prior quarter. Our net interest margin increased eight basis points to 4.10% compared to the prior quarter. Results for the third quarter of 2024, compared to the prior quarter, were primarily driven by an increase of nine basis points in the yield on earning assets, partially offset by an increase of five basis points in the cost of interest-bearing liabilities.
Average loans, including loans held-for-sale, increased by $75.8 million in the third quarter of 2024, compared to the prior quarter. Loan yield increased by 12 basis points to 6.71% in the third quarter of 2024, compared to the prior quarter, primarily due to higher yields on new originations as compared to amortizing and maturing balances. Average interest-bearing deposits increased $59.1 million in the third quarter of 2024, compared to the prior quarter. Total cost of interest-bearing deposits increased by five basis points to 3.16% in the third quarter of 2024, compared to the prior quarter, primarily due to continued intense competition for deposits amidst the elevated interest rate environment. Average FHLB borrowings increased $4.8 million in the third quarter of 2024, compared to the prior quarter. The cost of FHLB borrowings decreased by six basis points to 5.61% in the third quarter of 2024, compared to the prior quarter.
Asset Quality and Provision for Credit Losses
The provision for credit losses totaled $5.0 million for the third quarter of 2024, an increase of $3.8 million from $1.2 million for the prior quarter, primarily due to loan growth and deterioration on a specific customer relationship in our loan portfolio.
Net charge-offs for the third quarter of 2024 were $1.4 million resulting in an annualized ratio of net charge-offs to average loans of 0.09%, compared to net charge-offs of $2.0 million, or an annualized ratio of net-charge offs to average loans of 0.13% for the prior quarter. The allowance for credit losses as a percentage of total loans was 1.29% at September 30, 2024, an increase of four basis points from the prior quarter.
The ratio of nonperforming assets to total assets was 0.86% at September 30, 2024, compared to 0.84% at June 30, 2024.
Noninterest Income
Noninterest income totaled $22.1 million for the third quarter of 2024, a decrease of $1.2 million from the prior quarter. Mortgage banking income decreased $2.2 million for the third quarter of 2024, primarily due to a decrease in revenue related to net sale gains and fees from mortgage loan originations, including fair value changes in the held-for-sale portfolio and hedging and a decrease in the change in fair value of our MSR asset, net of hedging activity.
Other noninterest income increased $1.0 million for the third quarter of 2024, primarily due to an increase in income from loan syndication fees and an increase in the fair value of investments related to our deferred compensation plan. Noninterest income as a percentage of total revenue1 was 22.5%, a decrease of 1.7% from the prior quarter.
Noninterest Expense
Noninterest expense totaled $64.7 million for the third quarter of 2024, an increase of $0.8 million from the prior quarter, primarily due to an increase in merger related expenses of $0.6 million from the prior quarter.
The efficiency ratio for the third quarter of 2024 was 65.83% compared to 66.42% for the prior quarter. Merger costs negatively affected the efficiency ratio for the third quarter of 2024 by 1.67%, up from a negative impact of 1.09% for the prior quarter.
Tax Rate
The effective tax rate was 21.5% for the third quarter of 2024, compared to 21.0% for the prior quarter.
Loans
Loans were $6.4 billion at September 30, 2024 compared to $6.3 billion at June 30, 2024, an increase of $0.1 billion in the third quarter of 2024, or 6.7% on an annualized basis. Growth in the third quarter in commercial and industrial (C&I), owner occupied commercial real estate and residential real estate loans were partially offset by a decline in non-owner occupied commercial real estate and construction and land loans.
Deposits
Deposits were $6.6 billion at September 30, 2024 and June 30, 2024, increasing by $30.4 million in the third quarter of 2024, or 1.8% on an annualized basis. Deposit growth of $107.4 million in interest-bearing demand accounts and $103.4 million in savings accounts and money market accounts in the third quarter were partially offset by a decline of $171.4 million in certificate of deposit accounts. Average deposits were $6.6 billion for the third quarter of 2024, compared to $6.5 billion for the prior quarter, an increase of $0.1 billion in the third quarter of 2024, or 6.8% on an annualized basis. Noninterest-bearing deposit accounts represented 23.4% of total deposits at September 30, 2024 and the loan-to-deposit ratio was 96.9% at September 30, 2024.
The ratio of total uninsured deposits to total deposits was estimated to be 32.7% at September 30, 2024, compared to 32.1% at June 30, 2024. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 26.8% at September 30, 2024, compared to 25.5% at June 30, 2024.2
Capital
Capital ratios remain strong and above “well-capitalized” thresholds. As of September 30, 2024, our common equity tier 1 risk-based capital ratio was 13.06%, total risk-based capital ratio was 15.25% and tier 1 leverage ratio was 11.96%. Book value per share was $37.38 at September 30, 2024, an increase of $1.07 from June 30, 2024. Tangible book value per share, a non-GAAP financial measure, was $33.68 at September 30, 2024, an increase of $1.12 from June 30, 2024.
Non-GAAP Financial Measures
This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release:
- Tangible stockholders’ equity;
- Tangible assets;
- Tangible stockholders’ equity to tangible assets;
- Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
- Tangible book value per share;
- Net income excluding merger costs;
- Return on average total assets excluding merger costs;
- Return on average stockholders’ equity excluding merger costs;
- Efficiency ratio excluding merger related expenses;
- Diluted earnings per share excluding merger related costs; and
- Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis.
The tables within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release to the most comparable GAAP equivalent.
About FirstSun Capital Bancorp
FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $8.1 billion as of September 30, 2024.
First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com.
| _______________ |
1 Total revenue is net interest income plus noninterest income. |
2 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. |
Summary Data: |
|||||||||||||||||||
|
As of and for the quarter ended |
||||||||||||||||||
($ in thousands, except per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Net interest income |
$ |
76,158 |
|
|
$ |
72,899 |
|
|
$ |
70,806 |
|
|
$ |
72,069 |
|
|
$ |
73,410 |
|
Provision for credit losses |
|
5,000 |
|
|
|
1,200 |
|
|
|
16,500 |
|
|
|
6,575 |
|
|
|
3,890 |
|
Noninterest income |
|
22,075 |
|
|
|
23,274 |
|
|
|
22,808 |
|
|
|
17,221 |
|
|
|
18,650 |
|
Noninterest expense |
|
64,664 |
|
|
|
63,875 |
|
|
|
61,828 |
|
|
|
52,308 |
|
|
|
56,176 |
|
Income before income taxes |
|
28,569 |
|
|
|
31,098 |
|
|
|
15,286 |
|
|
|
30,407 |
|
|
|
31,994 |
|
Provision for income taxes |
|
6,147 |
|
|
|
6,538 |
|
|
|
2,990 |
|
|
|
6,393 |
|
|
|
6,762 |
|
Net income |
|
22,422 |
|
|
|
24,560 |
|
|
|
12,296 |
|
|
|
24,014 |
|
|
|
25,232 |
|
Net income, excluding merger costs (1) |
|
23,655 |
|
|
|
25,181 |
|
|
|
14,592 |
|
|
|
24,014 |
|
|
|
25,232 |
|
Weighted average common shares outstanding, basic |
|
27,612,538 |
|
|
|
27,430,761 |
|
|
|
27,019,625 |
|
|
|
24,953,764 |
|
|
|
24,942,389 |
|
Weighted average common shares outstanding, diluted |
|
28,212,809 |
|
|
|
28,031,956 |
|
|
|
27,628,941 |
|
|
|
25,472,017 |
|
|
|
25,357,807 |
|
Diluted earnings per share |
$ |
0.79 |
|
|
$ |
0.88 |
|
|
$ |
0.45 |
|
|
$ |
0.94 |
|
|
$ |
1.00 |
|
Diluted earnings per share, excluding merger costs (1) |
$ |
0.84 |
|
|
$ |
0.90 |
|
|
$ |
0.53 |
|
|
$ |
0.94 |
|
|
$ |
1.00 |
|
Return on average total assets |
|
1.13 |
% |
|
|
1.26 |
% |
|
|
0.64 |
% |
|
|
1.26 |
% |
|
|
1.34 |
% |
Return on average total assets, excluding merger costs (1) |
|
1.19 |
% |
|
|
1.29 |
% |
|
|
0.76 |
% |
|
|
1.26 |
% |
|
|
1.34 |
% |
Return on average stockholders' equity |
|
8.79 |
% |
|
|
10.03 |
% |
|
|
5.15 |
% |
|
|
11.19 |
% |
|
|
12.03 |
% |
Return on average stockholders’ equity, excluding merger costs (1) |
|
9.27 |
% |
|
|
10.28 |
% |
|
|
6.11 |
% |
|
|
11.19 |
% |
|
|
12.03 |
% |
Net interest margin |
|
4.10 |
% |
|
|
4.02 |
% |
|
|
3.99 |
% |
|
|
4.08 |
% |
|
|
4.23 |
% |
Net interest margin (FTE basis) (1) |
|
4.16 |
% |
|
|
4.08 |
% |
|
|
4.06 |
% |
|
|
4.15 |
% |
|
|
4.30 |
% |
Efficiency ratio |
|
65.83 |
% |
|
|
66.42 |
% |
|
|
66.05 |
% |
|
|
58.58 |
% |
|
|
61.02 |
% |
Efficiency ratio, excluding merger related expenses (1) |
|
64.16 |
% |
|
|
65.33 |
% |
|
|
63.39 |
% |
|
|
58.58 |
% |
|
|
61.02 |
% |
Noninterest income to total revenue (2) |
|
22.5 |
% |
|
|
24.2 |
% |
|
|
24.4 |
% |
|
|
19.3 |
% |
|
|
20.3 |
% |
Total assets |
$ |
8,138,487 |
|
|
$ |
7,999,295 |
|
|
$ |
7,781,601 |
|
|
$ |
7,879,724 |
|
|
$ |
7,756,875 |
|
Total loans held-for-sale |
|
72,247 |
|
|
|
66,571 |
|
|
|
56,813 |
|
|
|
54,212 |
|
|
|
51,465 |
|
Total loans held-for-investment |
|
6,443,756 |
|
|
|
6,337,162 |
|
|
|
6,284,868 |
|
|
|
6,267,096 |
|
|
|
6,179,522 |
|
Total deposits |
|
6,649,880 |
|
|
|
6,619,525 |
|
|
|
6,445,388 |
|
|
|
6,374,103 |
|
|
|
6,339,847 |
|
Total stockholders' equity |
|
1,034,085 |
|
|
|
996,599 |
|
|
|
964,662 |
|
|
|
877,197 |
|
|
|
843,719 |
|
Loan to deposit ratio |
|
96.9 |
% |
|
|
95.7 |
% |
|
|
97.5 |
% |
|
|
98.3 |
% |
|
|
97.5 |
% |
Period end common shares outstanding |
|
27,665,918 |
|
|
|
27,443,246 |
|
|
|
27,442,943 |
|
|
|
24,960,639 |
|
|
|
24,942,645 |
|
Book value per share |
$ |
37.38 |
|
|
$ |
36.31 |
|
|
$ |
35.15 |
|
|
$ |
35.14 |
|
|
$ |
33.83 |
|
Tangible book value per share (1) |
$ |
33.68 |
|
|
$ |
32.56 |
|
|
$ |
31.37 |
|
|
$ |
30.96 |
|
|
$ |
29.60 |
|
| (1) | Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
| (2) | Total revenue is net interest income plus noninterest income. |
|
As of and for the nine months ended |
||||||
($ in thousands, except per share amounts) |
September 30,
|
|
September 30,
|
||||
Net interest income |
$ |
219,863 |
|
|
$ |
221,362 |
|
Provision for credit losses |
|
22,700 |
|
|
|
11,672 |
|
Noninterest income |
|
68,157 |
|
|
|
61,871 |
|
Noninterest expense |
|
190,367 |
|
|
|
170,485 |
|
Income before income taxes |
|
74,953 |
|
|
|
101,076 |
|
Provision for income taxes |
|
15,675 |
|
|
|
21,557 |
|
Net income |
|
59,278 |
|
|
|
79,519 |
|
Net income, excluding merger costs (1) |
|
63,428 |
|
|
|
79,519 |
|
Weighted average common shares outstanding, basic |
|
27,355,098 |
|
|
|
24,933,168 |
|
Weighted average common shares outstanding, diluted |
|
27,976,215 |
|
|
|
25,365,297 |
|
Diluted earnings per share |
$ |
2.12 |
|
|
$ |
3.13 |
|
Diluted earnings per share, excluding merger costs (1) |
$ |
2.27 |
|
|
$ |
3.13 |
|
Return on average total assets |
|
1.01 |
% |
|
|
1.42 |
% |
Return on average total assets, excluding merger costs (1) |
|
1.08 |
% |
|
|
1.42 |
% |
Return on average stockholders' equity |
|
8.02 |
% |
|
|
12.97 |
% |
Return on average stockholders’ equity, excluding merger costs (1) |
|
8.58 |
% |
|
|
12.97 |
% |
Net interest margin |
|
4.04 |
% |
|
|
4.28 |
% |
Net interest margin (FTE basis) (1) |
|
4.10 |
% |
|
|
4.36 |
% |
Efficiency ratio |
|
66.10 |
% |
|
|
60.19 |
% |
Efficiency ratio, excluding merger related expenses (1) |
|
64.30 |
% |
|
|
60.19 |
% |
Noninterest income to total revenue (2) |
|
23.7 |
% |
|
|
21.8 |
% |
Total assets |
$ |
8,138,487 |
|
|
$ |
7,756,875 |
|
Total loans held-for-sale |
|
72,247 |
|
|
|
51,465 |
|
Total loans held-for-investment |
|
6,443,756 |
|
|
|
6,179,522 |
|
Total deposits |
|
6,649,880 |
|
|
|
6,339,847 |
|
Total stockholders' equity |
|
1,034,085 |
|
|
|
843,719 |
|
Loan to deposit ratio |
|
96.9 |
% |
|
|
97.5 |
% |
Period end common shares outstanding |
|
27,665,918 |
|
|
|
24,942,645 |
|
Book value per share |
$ |
37.38 |
|
|
$ |
33.83 |
|
Tangible book value per share (1) |
$ |
33.68 |
|
|
$ |
29.60 |
|
| (1) | Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
| (2) | Total revenue is net interest income plus noninterest income. |
Condensed Consolidated Statements of Income (Unaudited): |
|||||||||||
|
For the quarter ended |
|
For the nine months ended |
||||||||
($ in thousands, except per share amounts) |
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||
Total interest income |
$ |
118,932 |
|
$ |
106,775 |
|
$ |
343,501 |
|
$ |
303,710 |
Total interest expense |
|
42,774 |
|
|
33,365 |
|
|
123,638 |
|
|
82,348 |
Net interest income |
|
76,158 |
|
|
73,410 |
|
|
219,863 |
|
|
221,362 |
Provision for credit losses |
|
5,000 |
|
|
3,890 |
|
|
22,700 |
|
|
11,672 |
Net interest income after provision for credit losses |
|
71,158 |
|
|
69,520 |
|
|
197,163 |
|
|
209,690 |
Noninterest income: |
|
|
|
|
|
|
|
||||
Service charges on deposits |
|
6,240 |
|
|
5,475 |
|
|
17,954 |
|
|
15,848 |
Credit and debit card fees |
|
2,806 |
|
|
2,996 |
|
|
8,616 |
|
|
9,034 |
Trust and investment advisory fees |
|
1,395 |
|
|
1,398 |
|
|
4,351 |
|
|
4,337 |
Mortgage banking income, net |
|
8,838 |
|
|
7,413 |
|
|
29,383 |
|
|
26,501 |
Other noninterest income |
|
2,796 |
|
|
1,368 |
|
|
7,853 |
|
|
6,151 |
Total noninterest income |
|
22,075 |
|
|
18,650 |
|
|
68,157 |
|
|
61,871 |
Noninterest expense: |
|
|
|
|
|
|
|
||||
Salaries and benefits |
|
39,306 |
|
|
33,968 |
|
|
116,487 |
|
|
103,073 |
Occupancy and equipment |
|
9,121 |
|
|
8,487 |
|
|
26,417 |
|
|
24,977 |
Amortization of intangible assets |
|
651 |
|
|
899 |
|
|
2,118 |
|
|
3,993 |
Merger related expenses |
|
1,633 |
|
|
— |
|
|
5,168 |
|
|
— |
Other noninterest expenses |
|
13,953 |
|
|
12,822 |
|
|
40,177 |
|
|
38,442 |
Total noninterest expense |
|
64,664 |
|
|
56,176 |
|
|
190,367 |
|
|
170,485 |
Income before income taxes |
|
28,569 |
|
|
31,994 |
|
|
74,953 |
|
|
101,076 |
Provision for income taxes |
|
6,147 |
|
|
6,762 |
|
|
15,675 |
|
|
21,557 |
Net income |
$ |
22,422 |
|
$ |
25,232 |
|
$ |
59,278 |
|
$ |
79,519 |
Earnings per share - basic |
$ |
0.81 |
|
$ |
1.01 |
|
$ |
2.17 |
|
$ |
3.19 |
Earnings per share - diluted |
$ |
0.79 |
|
$ |
1.00 |
|
$ |
2.12 |
|
$ |
3.13 |
|
For the quarter ended |
|||||||||||||
($ in thousands, except per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Total interest income |
$ |
118,932 |
|
$ |
114,529 |
|
$ |
110,040 |
|
$ |
109,974 |
|
$ |
106,775 |
Total interest expense |
|
42,774 |
|
|
41,630 |
|
|
39,234 |
|
|
37,905 |
|
|
33,365 |
Net interest income |
|
76,158 |
|
|
72,899 |
|
|
70,806 |
|
|
72,069 |
|
|
73,410 |
Provision for credit losses |
|
5,000 |
|
|
1,200 |
|
|
16,500 |
|
|
6,575 |
|
|
3,890 |
Net interest income after provision for credit losses |
|
71,158 |
|
|
71,699 |
|
|
54,306 |
|
|
65,494 |
|
|
69,520 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|||||
Service charges on deposits |
|
6,240 |
|
|
5,946 |
|
|
5,768 |
|
|
5,497 |
|
|
5,475 |
Credit and debit card fees |
|
2,806 |
|
|
3,007 |
|
|
2,803 |
|
|
2,966 |
|
|
2,996 |
Trust and investment advisory fees |
|
1,395 |
|
|
1,493 |
|
|
1,463 |
|
|
1,356 |
|
|
1,398 |
Mortgage banking income, net |
|
8,838 |
|
|
11,043 |
|
|
9,502 |
|
|
4,883 |
|
|
7,413 |
Other noninterest income |
|
2,796 |
|
|
1,785 |
|
|
3,272 |
|
|
2,519 |
|
|
1,368 |
Total noninterest income |
|
22,075 |
|
|
23,274 |
|
|
22,808 |
|
|
17,221 |
|
|
18,650 |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|||||
Salaries and benefits |
|
39,306 |
|
|
39,828 |
|
|
37,353 |
|
|
30,158 |
|
|
33,968 |
Occupancy and equipment |
|
9,121 |
|
|
8,701 |
|
|
8,595 |
|
|
8,449 |
|
|
8,487 |
Amortization of intangible assets |
|
651 |
|
|
652 |
|
|
815 |
|
|
829 |
|
|
899 |
Merger related expenses |
|
1,633 |
|
|
1,046 |
|
|
2,489 |
|
|
— |
|
|
— |
Other noninterest expenses |
|
13,953 |
|
|
13,648 |
|
|
12,576 |
|
|
12,872 |
|
|
12,822 |
Total noninterest expense |
|
64,664 |
|
|
63,875 |
|
|
61,828 |
|
|
52,308 |
|
|
56,176 |
Income before income taxes |
|
28,569 |
|
|
31,098 |
|
|
15,286 |
|
|
30,407 |
|
|
31,994 |
Provision for income taxes |
|
6,147 |
|
|
6,538 |
|
|
2,990 |
|
|
6,393 |
|
|
6,762 |
Net income |
$ |
22,422 |
|
$ |
24,560 |
|
$ |
12,296 |
|
$ |
24,014 |
|
$ |
25,232 |
Earnings per share - basic |
$ |
0.81 |
|
$ |
0.90 |
|
$ |
0.46 |
|
$ |
0.96 |
|
$ |
1.01 |
Earnings per share - diluted |
$ |
0.79 |
|
$ |
0.88 |
|
$ |
0.45 |
|
$ |
0.94 |
|
$ |
1.00 |
Condensed Consolidated Balance Sheets as of (Unaudited): |
|||||||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
573,674 |
|
|
$ |
535,766 |
|
|
$ |
383,605 |
|
|
$ |
479,362 |
|
|
$ |
443,887 |
|
Securities available-for-sale, at fair value |
|
496,811 |
|
|
|
491,649 |
|
|
|
499,078 |
|
|
|
516,757 |
|
|
|
495,992 |
|
Securities held-to-maturity |
|
35,885 |
|
|
|
36,310 |
|
|
|
36,640 |
|
|
|
36,983 |
|
|
|
37,410 |
|
Loans held-for-sale, at fair value |
|
72,247 |
|
|
|
66,571 |
|
|
|
56,813 |
|
|
|
54,212 |
|
|
|
51,465 |
|
Loans |
|
6,443,756 |
|
|
|
6,337,162 |
|
|
|
6,284,868 |
|
|
|
6,267,096 |
|
|
|
6,179,522 |
|
Allowance for credit losses |
|
(83,159 |
) |
|
|
(78,960 |
) |
|
|
(79,829 |
) |
|
|
(80,398 |
) |
|
|
(78,666 |
) |
Loans, net |
|
6,360,597 |
|
|
|
6,258,202 |
|
|
|
6,205,039 |
|
|
|
6,186,698 |
|
|
|
6,100,856 |
|
Mortgage servicing rights, at fair value |
|
78,799 |
|
|
|
80,744 |
|
|
|
78,416 |
|
|
|
76,701 |
|
|
|
81,036 |
|
Premises and equipment, net |
|
82,532 |
|
|
|
83,320 |
|
|
|
84,063 |
|
|
|
84,842 |
|
|
|
83,733 |
|
Other real estate owned and foreclosed assets, net |
|
4,478 |
|
|
|
4,497 |
|
|
|
4,414 |
|
|
|
4,100 |
|
|
|
8,395 |
|
Goodwill |
|
93,483 |
|
|
|
93,483 |
|
|
|
93,483 |
|
|
|
93,483 |
|
|
|
93,483 |
|
Intangible assets, net |
|
8,866 |
|
|
|
9,517 |
|
|
|
10,168 |
|
|
|
10,984 |
|
|
|
11,813 |
|
All other assets |
|
331,115 |
|
|
|
339,236 |
|
|
|
329,882 |
|
|
|
335,602 |
|
|
|
348,805 |
|
Total assets |
$ |
8,138,487 |
|
|
$ |
7,999,295 |
|
|
$ |
7,781,601 |
|
|
$ |
7,879,724 |
|
|
$ |
7,756,875 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand deposit accounts |
$ |
1,554,762 |
|
|
$ |
1,562,308 |
|
|
$ |
1,517,315 |
|
|
$ |
1,530,506 |
|
|
$ |
1,610,650 |
|
Interest-bearing deposit accounts: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand accounts |
|
645,647 |
|
|
|
538,232 |
|
|
|
542,184 |
|
|
|
534,540 |
|
|
|
440,845 |
|
Savings and money market accounts |
|
2,608,808 |
|
|
|
2,505,439 |
|
|
|
2,473,255 |
|
|
|
2,446,632 |
|
|
|
2,476,097 |
|
NOW accounts |
|
41,234 |
|
|
|
42,687 |
|
|
|
39,181 |
|
|
|
56,819 |
|
|
|
35,686 |
|
Certificate of deposit accounts |
|
1,799,429 |
|
|
|
1,970,859 |
|
|
|
1,873,453 |
|
|
|
1,805,606 |
|
|
|
1,776,569 |
|
Total deposits |
|
6,649,880 |
|
|
|
6,619,525 |
|
|
|
6,445,388 |
|
|
|
6,374,103 |
|
|
|
6,339,847 |
|
Securities sold under agreements to repurchase |
|
10,913 |
|
|
|
20,408 |
|
|
|
20,423 |
|
|
|
24,693 |
|
|
|
25,868 |
|
Federal Home Loan Bank advances |
|
215,000 |
|
|
|
145,000 |
|
|
|
144,810 |
|
|
|
389,468 |
|
|
|
330,000 |
|
Other borrowings |
|
75,709 |
|
|
|
75,577 |
|
|
|
75,445 |
|
|
|
75,313 |
|
|
|
75,180 |
|
Other liabilities |
|
152,900 |
|
|
|
142,186 |
|
|
|
130,873 |
|
|
|
138,950 |
|
|
|
142,261 |
|
Total liabilities |
|
7,104,402 |
|
|
|
7,002,696 |
|
|
|
6,816,939 |
|
|
|
7,002,527 |
|
|
|
6,913,156 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock |
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
547,271 |
|
|
|
543,339 |
|
|
|
542,582 |
|
|
|
462,680 |
|
|
|
462,507 |
|
Retained earnings |
|
516,800 |
|
|
|
494,378 |
|
|
|
469,818 |
|
|
|
457,522 |
|
|
|
433,508 |
|
Accumulated other comprehensive loss, net |
|
(29,989 |
) |
|
|
(41,121 |
) |
|
|
(47,741 |
) |
|
|
(43,007 |
) |
|
|
(52,298 |
) |
Total stockholders' equity |
|
1,034,085 |
|
|
|
996,599 |
|
|
|
964,662 |
|
|
|
877,197 |
|
|
|
843,719 |
|
Total liabilities and stockholders' equity |
$ |
8,138,487 |
|
|
$ |
7,999,295 |
|
|
$ |
7,781,601 |
|
|
$ |
7,879,724 |
|
|
$ |
7,756,875 |
|
Consolidated Capital Ratios as of: |
|||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
Stockholders' equity to total assets |
12.71 % |
|
12.46 % |
|
12.40 % |
|
11.13 % |
|
10.88 % |
Tangible stockholders' equity to tangible assets (1) |
11.59 % |
|
11.32 % |
|
11.21 % |
|
9.94 % |
|
9.65 % |
Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2) |
11.56 % |
|
11.27 % |
|
11.17 % |
|
9.90 % |
|
9.59 % |
Tier 1 leverage ratio |
11.96 % |
|
11.83 % |
|
11.73 % |
|
10.52 % |
|
10.37 % |
Common equity tier 1 risk-based capital ratio |
13.06 % |
|
12.80 % |
|
12.54 % |
|
11.10 % |
|
10.79 % |
Tier 1 risk-based capital ratio |
13.06 % |
|
12.80 % |
|
12.54 % |
|
11.10 % |
|
10.79 % |
Total risk-based capital ratio |
15.25 % |
|
14.95 % |
|
14.73 % |
|
13.25 % |
|
12.93 % |
| (1) | Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
| (2) | Tangible stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax. |
Summary of Net Interest Margin: |
|||||||||||||||||||
|
For the quarter ended |
|
For the nine months ended |
||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||
(In thousands) |
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
||||
Interest Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans (1) |
|
6,460,484 |
|
6.71 % |
|
|
6,180,684 |
|
6.44 % |
|
|
6,386,620 |
|
6.59 % |
|
|
6,144,057 |
|
6.15 % |
Investment securities |
|
527,241 |
|
3.62 % |
|
|
545,257 |
|
3.10 % |
|
|
532,562 |
|
3.51 % |
|
|
559,855 |
|
3.00 % |
Interest-bearing cash and other assets |
|
442,632 |
|
5.17 % |
|
|
221,559 |
|
5.39 % |
|
|
343,911 |
|
5.26 % |
|
|
187,468 |
|
5.41 % |
Total earning assets |
|
7,430,357 |
|
6.40 % |
|
|
6,947,500 |
|
6.15 % |
|
|
7,263,093 |
|
6.31 % |
|
|
6,891,380 |
|
5.88 % |
Other assets |
|
534,740 |
|
|
|
|
557,988 |
|
|
|
|
543,916 |
|
|
|
|
553,628 |
|
|
Total assets |
$ |
7,965,097 |
|
|
|
$ |
7,505,488 |
|
|
|
$ |
7,807,009 |
|
|
|
$ |
7,445,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Demand and NOW deposits |
$ |
657,537 |
|
3.75 % |
|
$ |
466,837 |
|
3.27 % |
|
$ |
609,632 |
|
3.70 % |
|
$ |
343,112 |
|
2.79 % |
Savings deposits |
|
411,526 |
|
0.72 % |
|
|
439,172 |
|
0.62 % |
|
|
415,687 |
|
0.70 % |
|
|
452,298 |
|
0.48 % |
Money market deposits |
|
2,140,552 |
|
2.25 % |
|
|
2,026,028 |
|
1.58 % |
|
|
2,098,927 |
|
2.06 % |
|
|
2,142,301 |
|
1.18 % |
Certificates of deposits |
|
1,800,502 |
|
4.58 % |
|
|
1,748,515 |
|
4.21 % |
|
|
1,812,839 |
|
4.62 % |
|
|
1,407,264 |
|
3.61 % |
Total deposits |
|
5,010,117 |
|
3.16 % |
|
|
4,680,552 |
|
2.64 % |
|
|
4,937,085 |
|
3.09 % |
|
|
4,344,975 |
|
2.02 % |
Repurchase agreements |
|
13,528 |
|
1.29 % |
|
|
26,549 |
|
0.98 % |
|
|
17,099 |
|
1.15 % |
|
|
29,953 |
|
0.73 % |
Total deposits and repurchase agreements |
|
5,023,645 |
|
3.16 % |
|
|
4,707,101 |
|
2.63 % |
|
|
4,954,184 |
|
3.08 % |
|
|
4,374,928 |
|
2.01 % |
FHLB borrowings |
|
135,641 |
|
5.61 % |
|
|
84,332 |
|
5.40 % |
|
|
125,799 |
|
5.61 % |
|
|
335,485 |
|
5.00 % |
Other long-term borrowings |
|
75,654 |
|
6.58 % |
|
|
78,680 |
|
6.44 % |
|
|
75,522 |
|
6.59 % |
|
|
79,801 |
|
6.36 % |
Total interest-bearing liabilities |
|
5,234,940 |
|
3.27 % |
|
|
4,870,113 |
|
2.74 % |
|
|
5,155,505 |
|
3.20 % |
|
|
4,790,214 |
|
2.29 % |
Noninterest-bearing deposits |
|
1,568,685 |
|
|
|
|
1,654,090 |
|
|
|
|
1,529,793 |
|
|
|
|
1,705,392 |
|
|
Other liabilities |
|
141,206 |
|
|
|
|
142,027 |
|
|
|
|
136,491 |
|
|
|
|
131,628 |
|
|
Stockholders' equity |
|
1,020,266 |
|
|
|
|
839,258 |
|
|
|
|
985,220 |
|
|
|
|
817,774 |
|
|
Total liabilities and stockholders' equity |
$ |
7,965,097 |
|
|
|
$ |
7,505,488 |
|
|
|
$ |
7,807,009 |
|
|
|
$ |
7,445,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest spread |
|
|
3.13 % |
|
|
|
3.41 % |
|
|
|
3.11 % |
|
|
|
3.59 % |
||||
Net interest margin |
|
|
4.10 % |
|
|
|
4.23 % |
|
|
|
4.04 % |
|
|
|
4.28 % |
||||
Net interest margin (on FTE basis) (2) |
|
|
4.16 % |
|
|
|
4.30 % |
|
|
|
4.10 % |
|
|
|
4.36 % |
||||
| (1) | Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. |
| (2) | Represents a non-GAAP financial measure. See the tables beginning on page 15 for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
|
For the quarter ended |
|||||||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|||||||||||||||
(In thousands) |
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|||||
Interest Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans (1) |
|
6,460,484 |
|
6.71 % |
|
|
6,384,709 |
|
6.59 % |
|
|
6,313,855 |
|
6.48 % |
|
|
6,280,362 |
|
6.51 % |
|
|
6,180,684 |
|
6.44 % |
Investment securities |
|
527,241 |
|
3.62 % |
|
|
523,545 |
|
3.65 % |
|
|
546,960 |
|
3.28 % |
|
|
538,348 |
|
3.28 % |
|
|
545,257 |
|
3.10 % |
Interest-bearing cash and other assets |
|
442,632 |
|
5.17 % |
|
|
348,509 |
|
5.25 % |
|
|
239,508 |
|
5.49 % |
|
|
247,978 |
|
5.50 % |
|
|
221,559 |
|
5.39 % |
Total earning assets |
|
7,430,357 |
|
6.40 % |
|
|
7,256,763 |
|
6.31 % |
|
|
7,100,323 |
|
6.20 % |
|
|
7,066,688 |
|
6.22 % |
|
|
6,947,500 |
|
6.15 % |
Other assets |
|
534,740 |
|
|
|
|
548,465 |
|
|
|
|
548,642 |
|
|
|
|
563,368 |
|
|
|
|
557,988 |
|
|
Total assets |
$ |
7,965,097 |
|
|
|
$ |
7,805,228 |
|
|
|
$ |
7,648,965 |
|
|
|
$ |
7,630,056 |
|
|
|
$ |
7,505,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand and NOW deposits |
$ |
657,537 |
|
3.75 % |
|
$ |
621,343 |
|
3.80 % |
|
$ |
549,491 |
|
3.54 % |
|
$ |
510,982 |
|
3.45 % |
|
$ |
466,837 |
|
3.27 % |
Savings deposits |
|
411,526 |
|
0.72 % |
|
|
413,699 |
|
0.69 % |
|
|
421,882 |
|
0.69 % |
|
|
457,679 |
|
0.93 % |
|
|
439,172 |
|
0.62 % |
Money market deposits |
|
2,140,552 |
|
2.25 % |
|
|
2,092,449 |
|
2.01 % |
|
|
2,063,321 |
|
1.93 % |
|
|
2,063,383 |
|
1.82 % |
|
|
2,026,028 |
|
1.58 % |
Certificates of deposits |
|
1,800,502 |
|
4.58 % |
|
|
1,823,522 |
|
4.69 % |
|
|
1,814,629 |
|
4.60 % |
|
|
1,825,325 |
|
4.54 % |
|
|
1,748,515 |
|
4.21 % |
Total deposits |
|
5,010,117 |
|
3.16 % |
|
|
4,951,013 |
|
3.11 % |
|
|
4,849,323 |
|
3.00 % |
|
|
4,857,369 |
|
2.93 % |
|
|
4,680,552 |
|
2.64 % |
Repurchase agreements |
|
13,528 |
|
1.29 % |
|
|
16,553 |
|
1.15 % |
|
|
21,254 |
|
1.06 % |
|
|
23,457 |
|
1.06 % |
|
|
26,549 |
|
0.98 % |
Total deposits and repurchase agreements |
|
5,023,645 |
|
3.16 % |
|
|
4,967,566 |
|
3.10 % |
|
|
4,870,577 |
|
2.99 % |
|
|
4,880,826 |
|
2.92 % |
|
|
4,707,101 |
|
2.63 % |
FHLB borrowings |
|
135,641 |
|
5.61 % |
|
|
130,871 |
|
5.67 % |
|
|
110,777 |
|
5.56 % |
|
|
74,146 |
|
5.64 % |
|
|
84,332 |
|
5.40 % |
Other long-term borrowings |
|
75,654 |
|
6.58 % |
|
|
75,522 |
|
6.59 % |
|
|
75,389 |
|
6.62 % |
|
|
75,249 |
|
6.62 % |
|
|
78,680 |
|
6.44 % |
Total interest-bearing liabilities |
|
5,234,940 |
|
3.27 % |
|
|
5,173,959 |
|
3.22 % |
|
|
5,056,743 |
|
3.10 % |
|
|
5,030,221 |
|
3.01 % |
|
|
4,870,113 |
|
2.74 % |
Noninterest-bearing deposits |
|
1,568,685 |
|
|
|
|
1,517,560 |
|
|
|
|
1,502,707 |
|
|
|
|
1,597,672 |
|
|
|
|
1,654,090 |
|
|
Other liabilities |
|
141,206 |
|
|
|
|
133,845 |
|
|
|
|
134,370 |
|
|
|
|
143,416 |
|
|
|
|
142,027 |
|
|
Stockholders' equity |
|
1,020,266 |
|
|
|
|
979,864 |
|
|
|
|
955,145 |
|
|
|
|
858,747 |
|
|
|
|
839,258 |
|
|
Total liabilities and stockholders' equity |
$ |
7,965,097 |
|
|
|
$ |
7,805,228 |
|
|
|
$ |
7,648,965 |
|
|
|
$ |
7,630,056 |
|
|
|
$ |
7,505,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest spread |
|
|
3.13 % |
|
|
|
3.09 % |
|
|
|
3.10 % |
|
|
|
3.21 % |
|
|
|
3.41 % |
|||||
Net interest margin |
|
|
4.10 % |
|
|
|
4.02 % |
|
|
|
3.99 % |
|
|
|
4.08 % |
|
|
|
4.23 % |
|||||
Net interest margin (on FTE basis) (2) |
|
|
4.16 % |
|
|
|
4.08 % |
|
|
|
4.06 % |
|
|
|
4.15 % |
|
|
|
4.30 % |
|||||
| (1) | Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale. |
| (2) | Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. |
Deposits as of: |
||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing deposit accounts |
$ |
397,880 |
|
$ |
414,795 |
|
$ |
356,732 |
|
$ |
360,168 |
|
$ |
366,366 |
Interest-bearing deposit accounts: |
|
|
|
|
|
|
|
|
|
|||||
Demand and NOW deposits |
|
61,929 |
|
|
42,903 |
|
|
38,625 |
|
|
36,162 |
|
|
33,340 |
Savings deposits |
|
331,811 |
|
|
334,741 |
|
|
340,086 |
|
|
343,291 |
|
|
356,890 |
Money market deposits |
|
1,333,486 |
|
|
1,243,355 |
|
|
1,229,239 |
|
|
1,196,645 |
|
|
1,149,365 |
Certificates of deposits |
|
1,247,348 |
|
|
1,438,792 |
|
|
1,437,590 |
|
|
1,437,537 |
|
|
1,366,255 |
Total interest-bearing deposit accounts |
|
2,974,574 |
|
|
3,059,791 |
|
|
3,045,540 |
|
|
3,013,635 |
|
|
2,905,850 |
Total consumer deposits |
$ |
3,372,454 |
|
$ |
3,474,586 |
|
$ |
3,402,272 |
|
$ |
3,373,803 |
|
$ |
3,272,216 |
Business |
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing deposit accounts |
$ |
1,156,882 |
|
$ |
1,147,513 |
|
$ |
1,160,583 |
|
$ |
1,170,338 |
|
$ |
1,244,284 |
Interest-bearing deposit accounts: |
|
|
|
|
|
|
|
|
|
|||||
Demand and NOW deposits |
|
624,952 |
|
|
538,016 |
|
|
502,726 |
|
|
555,197 |
|
|
443,191 |
Savings deposits |
|
77,744 |
|
|
77,931 |
|
|
80,226 |
|
|
80,802 |
|
|
85,234 |
Money market deposits |
|
865,767 |
|
|
849,412 |
|
|
823,704 |
|
|
825,811 |
|
|
859,516 |
Certificates of deposits |
|
62,187 |
|
|
90,189 |
|
|
97,854 |
|
|
87,407 |
|
|
77,228 |
Total interest-bearing deposit accounts |
|
1,630,650 |
|
|
1,555,548 |
|
|
1,504,510 |
|
|
1,549,217 |
|
|
1,465,169 |
Total business deposits |
$ |
2,787,532 |
|
$ |
2,703,061 |
|
$ |
2,665,093 |
|
$ |
2,719,555 |
|
$ |
2,709,453 |
Wholesale deposits (1) |
$ |
489,894 |
|
$ |
441,878 |
|
$ |
378,023 |
|
$ |
280,745 |
|
$ |
358,178 |
Total deposits |
$ |
6,649,880 |
|
$ |
6,619,525 |
|
$ |
6,445,388 |
|
$ |
6,374,103 |
|
$ |
6,339,847 |
| (1) | Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits. |
Balance Sheet Ratios as of: |
|||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
Cash to total assets (1) |
6.90 % |
|
6.60 % |
|
4.80 % |
|
6.00 % |
|
5.60 % |
Loan to deposit ratio |
96.9 % |
|
95.7 % |
|
97.5 % |
|
98.3 % |
|
97.5 % |
Uninsured deposits to total deposits (2) |
32.7 % |
|
32.1 % |
|
32.0 % |
|
31.2 % |
|
32.0 % |
Uninsured and uncollateralized deposits to total deposits (2) |
26.8 % |
|
25.5 % |
|
25.2 % |
|
25.1 % |
|
25.4 % |
Wholesale deposits and borrowings to total liabilities (3) |
9.9 % |
|
8.4 % |
|
7.7 % |
|
9.6 % |
|
10.0 % |
| (1) | Cash consists of cash and amounts due from banks and interest-bearing deposits with other financial institutions. |
| (2) | Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated. |
| (3) | Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits. Wholesale borrowings consist of FHLB overnight and term advances. |
Loan Portfolio as of: |
||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Commercial and industrial |
$ |
2,527,636 |
|
$ |
2,431,110 |
|
$ |
2,480,078 |
|
$ |
2,467,688 |
|
$ |
2,459,358 |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|||||
Non-owner occupied |
|
821,670 |
|
|
866,999 |
|
|
836,515 |
|
|
812,235 |
|
|
767,135 |
Owner occupied |
|
700,325 |
|
|
660,511 |
|
|
642,930 |
|
|
635,365 |
|
|
631,352 |
Construction and land |
|
333,457 |
|
|
350,878 |
|
|
326,447 |
|
|
345,430 |
|
|
329,433 |
Multifamily |
|
95,125 |
|
|
94,220 |
|
|
94,898 |
|
|
103,066 |
|
|
114,535 |
Total commercial real estate |
|
1,950,577 |
|
|
1,972,608 |
|
|
1,900,790 |
|
|
1,896,096 |
|
|
1,842,455 |
Residential real estate |
|
1,172,459 |
|
|
1,146,989 |
|
|
1,109,676 |
|
|
1,110,610 |
|
|
1,059,074 |
Public Finance |
|
536,776 |
|
|
537,872 |
|
|
579,991 |
|
|
602,913 |
|
|
602,844 |
Consumer |
|
45,267 |
|
|
42,129 |
|
|
40,317 |
|
|
36,371 |
|
|
37,681 |
Other |
|
211,041 |
|
|
206,454 |
|
|
174,016 |
|
|
153,418 |
|
|
178,110 |
Total loans, net of deferred costs, fees, premiums, and discounts |
$ |
6,443,756 |
|
$ |
6,337,162 |
|
$ |
6,284,868 |
|
$ |
6,267,096 |
|
$ |
6,179,522 |
Asset Quality: |
|||||||||||||||||||
|
As of and for the quarter ended |
||||||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Net charge-offs |
$ |
1,401 |
|
|
$ |
2,009 |
|
|
$ |
17,429 |
|
|
$ |
4,743 |
|
|
$ |
2,296 |
|
Allowance for credit losses |
$ |
83,159 |
|
|
$ |
78,960 |
|
|
$ |
79,829 |
|
|
$ |
80,398 |
|
|
$ |
78,666 |
|
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due |
$ |
65,824 |
|
|
$ |
62,558 |
|
|
$ |
57,599 |
|
|
$ |
63,143 |
|
|
$ |
40,743 |
|
Nonperforming assets |
$ |
70,302 |
|
|
$ |
67,055 |
|
|
$ |
62,013 |
|
|
$ |
67,243 |
|
|
$ |
49,138 |
|
Ratio of net charge-offs to average loans outstanding |
|
0.09 |
% |
|
|
0.13 |
% |
|
|
1.11 |
% |
|
|
0.30 |
% |
|
|
0.15 |
% |
Allowance for credit losses to total loans outstanding |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.27 |
% |
Allowance for credit losses to total nonperforming loans |
|
126.34 |
% |
|
|
126.22 |
% |
|
|
138.59 |
% |
|
|
127.33 |
% |
|
|
193.08 |
% |
Nonperforming loans to total loans |
|
1.02 |
% |
|
|
0.99 |
% |
|
|
0.92 |
% |
|
|
1.01 |
% |
|
|
0.66 |
% |
Nonperforming assets to total assets |
|
0.86 |
% |
|
|
0.84 |
% |
|
|
0.80 |
% |
|
|
0.85 |
% |
|
|
0.63 |
% |
Non-GAAP Financial Measures and Reconciliations: |
|||||||||||||||||||||||||||
|
As of and for the quarter ended |
|
As of and for the nine months ended |
||||||||||||||||||||||||
($ in thousands, except share and per share amounts) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||
Tangible stockholders’ equity: |
|||||||||||||||||||||||||||
Total stockholders' equity (GAAP) |
$ |
1,034,085 |
|
|
$ |
996,599 |
|
|
$ |
964,662 |
|
|
$ |
877,197 |
|
|
$ |
843,719 |
|
|
$ |
1,034,085 |
|
|
$ |
843,719 |
|
Less: Goodwill and other intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill |
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
Other intangible assets |
|
(8,866 |
) |
|
|
(9,517 |
) |
|
|
(10,168 |
) |
|
|
(10,984 |
) |
|
|
(11,813 |
) |
|
|
(8,866 |
) |
|
|
(11,813 |
) |
Tangible stockholders' equity (non-GAAP) |
$ |
931,736 |
|
|
$ |
893,599 |
|
|
$ |
861,011 |
|
|
$ |
772,730 |
|
|
$ |
738,423 |
|
|
$ |
931,736 |
|
|
$ |
738,423 |
|
Tangible assets: |
|||||||||||||||||||||||||||
Total assets (GAAP) |
$ |
8,138,487 |
|
|
$ |
7,999,295 |
|
|
$ |
7,781,601 |
|
|
$ |
7,879,724 |
|
|
$ |
7,756,875 |
|
|
$ |
8,138,487 |
|
|
$ |
7,756,875 |
|
Less: Goodwill and other intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill |
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
|
|
(93,483 |
) |
Other intangible assets |
|
(8,866 |
) |
|
|
(9,517 |
) |
|
|
(10,168 |
) |
|
|
(10,984 |
) |
|
|
(11,813 |
) |
|
|
(8,866 |
) |
|
|
(11,813 |
) |
Tangible assets (non-GAAP) |
$ |
8,036,138 |
|
|
$ |
7,896,295 |
|
|
$ |
7,677,950 |
|
|
$ |
7,775,257 |
|
|
$ |
7,651,579 |
|
|
$ |
8,036,138 |
|
|
$ |
7,651,579 |
|
Tangible stockholders’ equity to tangible assets: |
|||||||||||||||||||||||||||
Total stockholders' equity to total assets (GAAP) |
|
12.71 |
% |
|
|
12.46 |
% |
|
|
12.40 |
% |
|
|
11.13 |
% |
|
|
10.88 |
% |
|
|
12.71 |
% |
|
|
10.88 |
% |
Less: Impact of goodwill and other intangible assets |
|
(1.12 |
)% |
|
|
(1.14 |
)% |
|
|
(1.19 |
)% |
|
|
(1.19 |
)% |
|
|
(1.23 |
)% |
|
|
(1.12 |
)% |
|
|
(1.23 |
)% |
Tangible stockholders' equity to tangible assets (non-GAAP) |
|
11.59 |
% |
|
|
11.32 |
% |
|
|
11.21 |
% |
|
|
9.94 |
% |
|
|
9.65 |
% |
|
|
11.59 |
% |
|
|
9.65 |
% |
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax: |
|||||||||||||||||||||||||||
Tangible stockholders' equity (non-GAAP) |
$ |
931,736 |
|
|
$ |
893,599 |
|
|
$ |
861,011 |
|
|
$ |
772,730 |
|
|
$ |
738,423 |
|
|
$ |
931,736 |
|
|
$ |
738,423 |
|
Less: Net unrealized losses on HTM securities, net of tax |
|
(2,852 |
) |
|
|
(3,949 |
) |
|
|
(4,236 |
) |
|
|
(3,629 |
) |
|
|
(5,001 |
) |
|
|
(2,852 |
) |
|
|
(5,001 |
) |
Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP) |
$ |
928,884 |
|
|
$ |
889,650 |
|
|
$ |
856,775 |
|
|
$ |
769,101 |
|
|
$ |
733,422 |
|
|
$ |
928,884 |
|
|
$ |
733,422 |
|
Tangible assets (non-GAAP) |
$ |
8,036,138 |
|
|
$ |
7,896,295 |
|
|
$ |
7,677,950 |
|
|
$ |
7,775,257 |
|
|
$ |
7,651,579 |
|
|
$ |
8,036,138 |
|
|
$ |
7,651,579 |
|
Less: Net unrealized losses on HTM securities, net of tax |
|
(2,852 |
) |
|
|
(3,949 |
) |
|
|
(4,236 |
) |
|
|
(3,629 |
) |
|
|
(5,001 |
) |
|
|
(2,852 |
) |
|
|
(5,001 |
) |
Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP) |
$ |
8,033,286 |
|
|
$ |
7,892,346 |
|
|
$ |
7,673,714 |
|
|
$ |
7,771,628 |
|
|
$ |
7,646,578 |
|
|
$ |
8,033,286 |
|
|
$ |
7,646,578 |
|
Tangible stockholders’ equity to tangible assets (non-GAAP) |
|
11.59 |
% |
|
|
11.32 |
% |
|
|
11.21 |
% |
|
|
9.94 |
% |
|
|
9.65 |
% |
|
|
11.59 |
% |
|
|
9.65 |
% |
Less: Net unrealized losses on HTM securities, net of tax |
|
(0.03 |
)% |
|
|
(0.05 |
)% |
|
|
(0.04 |
)% |
|
|
(0.04 |
)% |
|
|
(0.06 |
)% |
|
|
(0.03 |
)% |
|
|
(0.06 |
)% |
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP) |
|
11.56 |
% |
|
|
11.27 |
% |
|
|
11.17 |
% |
|
|
9.90 |
% |
|
|
9.59 |
% |
|
|
11.56 |
% |
|
|
9.59 |
% |
Tangible book value per share: |
|||||||||||||||||||||||||||
Total stockholders' equity (GAAP) |
$ |
1,034,085 |
|
|
$ |
996,599 |
|
|
$ |
964,662 |
|
|
$ |
877,197 |
|
|
$ |
843,719 |
|
|
$ |
1,034,085 |
|
|
$ |
843,719 |
|
Tangible stockholders' equity (non-GAAP) |
$ |
931,736 |
|
|
$ |
893,599 |
|
|
$ |
861,011 |
|
|
$ |
772,730 |
|
|
$ |
738,423 |
|
|
$ |
931,736 |
|
|
$ |
738,423 |
|
Total shares outstanding |
|
27,665,918 |
|
|
|
27,443,246 |
|
|
|
27,442,943 |
|
|
|
24,960,639 |
|
|
|
24,942,645 |
|
|
|
27,665,918 |
|
|
|
24,942,645 |
|
Book value per share (GAAP) |
$ |
37.38 |
|
|
$ |
36.31 |
|
|
$ |
35.15 |
|
|
$ |
35.14 |
|
|
$ |
33.83 |
|
|
$ |
37.38 |
|
|
$ |
33.83 |
|
Tangible book value per share (non-GAAP) |
$ |
33.68 |
|
|
$ |
32.56 |
|
|
$ |
31.37 |
|
|
$ |
30.96 |
|
|
$ |
29.60 |
|
|
$ |
33.68 |
|
|
$ |
29.60 |
|
Net income excluding merger costs: |
|||||||||||||||||||||||||||
Net income (GAAP) |
$ |
22,422 |
|
|
$ |
24,560 |
|
|
$ |
12,296 |
|
|
$ |
24,014 |
|
|
$ |
25,232 |
|
|
$ |
59,278 |
|
|
$ |
79,519 |
|
Add: Merger costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Merger related expenses |
|
1,633 |
|
|
|
1,046 |
|
|
|
2,489 |
|
|
|
— |
|
|
|
— |
|
|
|
5,168 |
|
|
|
— |
|
Income tax effect on merger related expenses |
|
(400 |
) |
|
|
(425 |
) |
|
|
(193 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,018 |
) |
|
|
— |
|
Total merger costs, net of tax |
|
1,233 |
|
|
|
621 |
|
|
|
2,296 |
|
|
|
— |
|
|
|
— |
|
|
|
4,150 |
|
|
|
— |
|
Net income excluding merger costs (non-GAAP) |
$ |
23,655 |
|
|
$ |
25,181 |
|
|
$ |
14,592 |
|
|
$ |
24,014 |
|
|
$ |
25,232 |
|
|
$ |
63,428 |
|
|
$ |
79,519 |
|
Return on average total assets excluding merger costs: |
|||||||||||||||||||||||||||
Return on average total assets (ROAA) (GAAP) |
|
1.13 |
% |
|
|
1.26 |
% |
|
|
0.64 |
% |
|
|
1.26 |
% |
|
|
1.34 |
% |
|
|
1.01 |
% |
|
|
1.42 |
% |
Add: Impact of merger costs, net of tax |
|
0.06 |
% |
|
|
0.03 |
% |
|
|
0.12 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.07 |
% |
|
|
— |
% |
ROAA excluding merger costs (non-GAAP) |
|
1.19 |
% |
|
|
1.29 |
% |
|
|
0.76 |
% |
|
|
1.26 |
% |
|
|
1.34 |
% |
|
|
1.08 |
% |
|
|
1.42 |
% |
Return on average stockholders’ equity excluding merger costs: |
|||||||||||||||||||||||||||
Return on average stockholders' equity (ROAE) (GAAP) |
|
8.79 |
% |
|
|
10.03 |
% |
|
|
5.15 |
% |
|
|
11.19 |
% |
|
|
12.03 |
% |
|
|
8.02 |
% |
|
|
12.97 |
% |
Add: Impact of merger costs, net of tax |
|
0.48 |
% |
|
|
0.25 |
% |
|
|
0.96 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.56 |
% |
|
|
— |
% |
ROAE excluding merger costs (non-GAAP) |
|
9.27 |
% |
|
|
10.28 |
% |
|
|
6.11 |
% |
|
|
11.19 |
% |
|
|
12.03 |
% |
|
|
8.58 |
% |
|
|
12.97 |
% |
Efficiency ratio excluding merger related expenses: |
|||||||||||||||||||||||||||
Efficiency ratio (GAAP) |
|
65.83 |
% |
|
|
66.42 |
% |
|
|
66.05 |
% |
|
|
58.58 |
% |
|
|
61.02 |
% |
|
|
66.10 |
% |
|
|
60.19 |
% |
Less: Impact of merger related expenses |
|
(1.67 |
)% |
|
|
(1.09 |
)% |
|
|
(2.66 |
)% |
|
|
— |
% |
|
|
— |
% |
|
|
(1.80 |
)% |
|
|
— |
% |
Efficiency ratio excluding merger related expenses (non-GAAP) |
|
64.16 |
% |
|
|
65.33 |
% |
|
|
63.39 |
% |
|
|
58.58 |
% |
|
|
61.02 |
% |
|
|
64.30 |
% |
|
|
60.19 |
% |
Diluted earnings per share excluding merger costs: |
|||||||||||||||||||||||||||
Diluted earnings per share (GAAP) |
$ |
0.79 |
|
|
$ |
0.88 |
|
|
$ |
0.45 |
|
|
$ |
0.94 |
|
|
$ |
1.00 |
|
|
$ |
2.12 |
|
|
$ |
3.13 |
|
Add: Impact of merger costs, net of tax |
|
0.05 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
|
|
0.15 |
|
|
|
— |
|
Diluted earnings per share excluding merger costs (non-GAAP) |
$ |
0.84 |
|
|
$ |
0.90 |
|
|
$ |
0.53 |
|
|
$ |
0.94 |
|
|
$ |
1.00 |
|
|
$ |
2.27 |
|
|
$ |
3.13 |
|
Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis: |
|||||||||||||||||||||||||||
Net interest income (GAAP) |
$ |
76,158 |
|
|
$ |
72,899 |
|
|
$ |
70,806 |
|
|
$ |
72,069 |
|
|
$ |
73,410 |
|
|
$ |
219,863 |
|
|
$ |
221,362 |
|
Gross income effect of tax exempt income |
|
1,132 |
|
|
|
1,156 |
|
|
|
1,318 |
|
|
|
1,270 |
|
|
|
1,286 |
|
|
|
3,606 |
|
|
|
3,816 |
|
FTE net interest income (non-GAAP) |
$ |
77,290 |
|
|
$ |
74,055 |
|
|
$ |
72,124 |
|
|
$ |
73,339 |
|
|
$ |
74,696 |
|
|
$ |
223,469 |
|
|
$ |
225,178 |
|
Average earning assets |
$ |
7,430,357 |
|
|
$ |
7,256,763 |
|
|
$ |
7,100,323 |
|
|
$ |
7,066,688 |
|
|
$ |
6,947,500 |
|
|
$ |
7,263,093 |
|
|
$ |
6,891,380 |
|
Net interest margin |
|
4.10 |
% |
|
|
4.02 |
% |
|
|
3.99 |
% |
|
|
4.08 |
% |
|
|
4.23 |
% |
|
|
4.04 |
% |
|
|
4.28 |
% |
Net interest margin on FTE basis (non-GAAP) |
|
4.16 |
% |
|
|
4.08 |
% |
|
|
4.06 |
% |
|
|
4.15 |
% |
|
|
4.30 |
% |
|
|
4.10 |
% |
|
|
4.36 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022703858/en/
Contacts
Investor Contact:
Ed Jacques
Director of Investor Relations & Business Development, FirstSun
214.473.7958 | Investor.Relations@firstsuncb.com
Media Contact:
Jeanne Lipson
Vice President of Marketing, Sunflower Bank
915.881.6785 | Jeanne.Lipson@SunflowerBank.com
