Union Bankshares Corporation (the “Company” or “Union”) (Nasdaq:
UBSH) today reported net income of $44.1 million and earnings per
share of $0.67 for its fourth quarter ended December 31,
2018. Net operating earnings(1) were $46.2 million and
operating earnings per share(1) was $0.70 for its fourth quarter
ended December 31, 2018; these operating results exclude $2.2
million in after-tax merger-related costs but include losses from
discontinued operations of $192,000.
For the year ended December 31, 2018, net income was $146.2
million and earnings per share was $2.22. Net operating earnings(1)
were $178.3 million and operating earnings per share(1) was $2.71
for the year ended December 31, 2018; these operating results
exclude $32.1 million in after-tax merger-related costs but include
losses from discontinued operations of $3.2 million.
“Union closed out our transformative 2018 year with a strong
fourth quarter,” said John C. Asbury, President and CEO of Union
Bankshares Corporation. “We accomplished what we said we would do
by hitting each one of our top tier financial targets showing the
underlying strength and earnings potential of this uniquely
valuable franchise.
“We had stronger than expected loan growth for the quarter which
brought our full year loan growth back in line with our initial
expectations for 2018. With the Access National Corporation
acquisition about to close, 2019 looks to be another year of
positive change and financial improvement as Union evolves into a
mid-Atlantic regional bank.”
On January 11, 2019, the Company and Access National Corporation
("Access") jointly announced the receipt of regulatory approval
from the Federal Reserve Bank of Richmond and from the Virginia
State Corporation Commission to move forward with the proposed
merger of Access into the Company (the "Pending Access Merger").
Further, on January 15, 2019, the Company and Access jointly
announced that, at separate special meetings, the shareholders of
both the Company and Access approved the Pending Access Merger. The
Pending Access Merger is expected to close February 1, 2019.
Select highlights for the fourth quarter of
2018
- Return on Average Assets (“ROA”) was 1.29% compared to 1.17% in
the third quarter of 2018. Operating ROA(1) was 1.36% compared to
1.21% in the third quarter of 2018.
- Return on Average Equity (“ROE”) was 9.21% compared to 8.06% in
the third quarter of 2018. Operating ROE(1) was 9.66% compared to
8.30% in the third quarter of 2018.
- Return on Average Tangible Common Equity (“ROTCE”)(1) was
16.42% compared to 14.72% in the third quarter of 2018. Operating
ROTCE(1) was 17.18% compared to 15.13% in the third quarter of
2018.
- Efficiency ratio decreased to 56.2% compared to 60.7% in the
third quarter of 2018. Operating efficiency ratio (FTE)(1)
decreased to 53.5% compared to 58.6% in the third quarter of
2018.
Select highlights for the full year 2018
- ROA was 1.11% compared to 0.83% for the year ended 2017.
Operating ROA(1) was 1.35% compared to 0.95% for the year ended
2017.
- ROE was 7.85% compared to 7.07% for the year ended 2017.
Operating ROE(1) was 9.57% compared to 8.11% for the year ended
2017.
- ROTCE(1) was 14.40% compared to 10.75% for the year ended 2017.
Operating ROTCE(1) was 17.35% compared to 12.24% for the year ended
2017.
- Efficiency ratio decreased to 63.6% compared to 66.1% for the
year ended 2017. Operating efficiency ratio (FTE)(1) decreased to
55.3% compared to 62.4% for the year ended 2017.
(1) These are financial measures not calculated in accordance
with generally accepted accounting principles (“GAAP”). For a
reconciliation of these non-GAAP financial measures, see
Alternative Performance Measures (non-GAAP) section of the Key
Financial Results.
NET INTEREST INCOME
For the fourth quarter of 2018, net interest income was $109.1
million, an increase of $3.1 million from the third quarter of
2018. Net interest income (FTE)(1) was $111.4 million in the
fourth quarter of 2018, an increase of $3.4 million from the third
quarter of 2018. The increases in both net interest income and net
interest income (FTE) were primarily driven by loan growth during
the quarter ended December 31, 2018. The fourth quarter net
interest margin decreased 7 basis points to 3.62% from 3.69% in the
previous quarter, while the net interest margin (FTE)(1) decreased
6 basis points to 3.70% from 3.76% during the same periods.
The decreases in the net interest margin and net interest margin
(FTE) were principally due to an approximately 15 basis point
increase in the cost of funds, partially offset by an approximately
9 basis point increase in the yield on earnings assets..
The Company’s net interest margin (FTE) includes the impact of
acquisition accounting fair value adjustments. During the
fourth quarter of 2018, net accretion related to acquisition
accounting decreased $182,000 from the prior quarter to $3.8
million for the quarter ended December 31, 2018. The third
and fourth quarters of 2018 and the remaining estimated net
accretion impact are reflected in the following table (dollars in
thousands):
|
LoanAccretion |
|
DepositAccretion |
|
BorrowingsAmortization |
|
Total |
For the quarter ended
September 30, 2018 |
3,496 |
|
592 |
|
(143 |
) |
|
$ |
3,945 |
|
For the quarter ended
December 31, 2018 |
3,479 |
|
445 |
|
(161 |
) |
|
3,763 |
|
For the year ended
December 31, 2018 |
17,145 |
|
2,553 |
|
(506 |
) |
|
19,192 |
|
For the years ending
(estimated):(2) |
|
|
|
|
|
|
|
2019 |
10,538 |
|
1,170 |
|
(660 |
) |
|
11,048 |
|
2020 |
8,130 |
|
284 |
|
(734 |
) |
|
7,680 |
|
2021 |
6,614 |
|
108 |
|
(805 |
) |
|
5,917 |
|
2022 |
4,984 |
|
21 |
|
(827 |
) |
|
4,178 |
|
2023 |
2,996 |
|
— |
|
(850 |
) |
|
2,146 |
|
Thereafter |
10,550 |
|
— |
|
(11,633 |
) |
|
(1,083 |
) |
(1) For the reconciliation of these non-GAAP financial measures,
see Alternative Performance Measures (non-GAAP) section of Key
Financial Results.(2) Estimated net accretion only includes
accretion for the previously completed acquisitions. The
accretion effects of the Pending Access Merger are not included in
the information above.
ASSET QUALITY/LOAN LOSS PROVISION
OverviewDuring the fourth quarter of 2018, the Company
experienced decreases in nonperforming asset (“NPA”) balances from
the prior quarter, primarily due to an increase in charge-offs
related to two credit relationships composed of construction and
land development loans. Past due loan levels as a percentage of
total loans held for investment at December 31, 2018 were higher
than past due loan levels at September 30, 2018 and December 31,
2017. Charge-off levels increased from the third quarter of 2018
and were primarily related to the consumer loan portfolio; as a
result, the provision for loan losses increased from the third
quarter of 2018.
All nonaccrual and past due loan metrics discussed below exclude
purchased credit impaired (“PCI”) loans totaling $90.2 million (net
of fair value mark of $23.3 million) at December 31, 2018.
Nonperforming AssetsAt December 31, 2018, NPAs totaled $33.7
million, a decline of $1.2 million, or 3.5%, from September 30,
2018 and an increase of $6.7 million, or 24.7%, from December 31,
2017. NPAs as a percentage of total outstanding loans at
December 31, 2018 were 0.35%, a decrease of 2 basis points from
0.37% at September 30, 2018 and a decline of 3 basis points from
0.38% at December 31, 2017. As the Company's NPAs have been
at or near historic lows over the last several quarters, certain
changes from quarter to quarter might stand out in comparison to
one another but do not have a significant impact on the Company's
overall asset quality position.
The following table shows a summary of nonperforming asset
balances at the quarter ended (dollars in thousands):
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Nonaccrual loans |
$ |
26,953 |
|
|
$ |
28,110 |
|
|
$ |
25,662 |
|
|
$ |
25,138 |
|
|
$ |
21,743 |
|
Foreclosed
properties |
6,722 |
|
|
6,800 |
|
|
7,241 |
|
|
8,079 |
|
|
5,253 |
|
Total nonperforming
assets |
$ |
33,675 |
|
|
$ |
34,910 |
|
|
$ |
32,903 |
|
|
$ |
33,217 |
|
|
$ |
26,996 |
|
The following table shows the activity in nonaccrual loans for
the quarter ended (dollars in thousands):
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Beginning Balance |
$ |
28,110 |
|
|
$ |
25,662 |
|
|
$ |
25,138 |
|
|
$ |
21,743 |
|
|
$ |
20,122 |
|
Net
customer payments |
(3,077 |
) |
|
(2,459 |
) |
|
(2,651 |
) |
|
(1,455 |
) |
|
(768 |
) |
Additions |
4,659 |
|
|
6,268 |
|
|
5,063 |
|
|
5,451 |
|
|
4,335 |
|
Charge-offs |
(2,069 |
) |
|
(1,137 |
) |
|
(539 |
) |
|
(403 |
) |
|
(1,305 |
) |
Loans
returning to accruing status |
(420 |
) |
|
(70 |
) |
|
(1,349 |
) |
|
(182 |
) |
|
(448 |
) |
Transfers
to foreclosed property |
(250 |
) |
|
(154 |
) |
|
— |
|
|
(16 |
) |
|
(193 |
) |
Ending Balance |
$ |
26,953 |
|
|
$ |
28,110 |
|
|
$ |
25,662 |
|
|
$ |
25,138 |
|
|
$ |
21,743 |
|
The following table shows the activity in foreclosed properties
for the quarter ended (dollars in thousands):
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Beginning Balance |
$ |
6,800 |
|
|
$ |
7,241 |
|
|
$ |
8,079 |
|
|
$ |
5,253 |
|
|
$ |
6,449 |
|
Additions
of foreclosed property |
432 |
|
|
165 |
|
|
283 |
|
|
44 |
|
|
325 |
|
Acquisitions of foreclosed property (1) |
— |
|
|
— |
|
|
(162 |
) |
|
4,204 |
|
|
— |
|
Valuation
adjustments |
(140 |
) |
|
(42 |
) |
|
(383 |
) |
|
(759 |
) |
|
(1,046 |
) |
Proceeds
from sales |
(286 |
) |
|
(889 |
) |
|
(580 |
) |
|
(684 |
) |
|
(479 |
) |
Gains
(losses) from sales |
(84 |
) |
|
325 |
|
|
4 |
|
|
21 |
|
|
4 |
|
Ending Balance |
$ |
6,722 |
|
|
$ |
6,800 |
|
|
$ |
7,241 |
|
|
$ |
8,079 |
|
|
$ |
5,253 |
|
(1) Includes subsequent measurement period adjustments.
Past Due LoansPast due loans still accruing interest totaled
$61.9 million, or 0.64% of total loans, at December 31, 2018
compared to $46.6 million, or 0.49% of total loans, at September
30, 2018 and $27.8 million, or 0.39% of total loans, at December
31, 2017. Of the total past due loans still accruing
interest, $8.9 million, or 0.09% of total loans, were loans past
due 90 days or more at December 31, 2018, compared to $9.5 million,
or 0.10% of total loans, at September 30, 2018 and $3.5 million, or
0.05% of total loans, at December 31, 2017. The increase in past
due loans was primarily driven by a seasonal increase related to
residential 1-4 family loans that were 30 days past due as of
year-end of which the majority subsequently became current.
Net Charge-offsFor the fourth quarter of 2018, net charge-offs
were $5.0 million, or 0.21% of total average loans on an annualized
basis, compared to $3.2 million, or 0.13%, for the prior quarter
and $2.7 million, or 0.15%, for the same quarter last year. The
majority of net charge-offs in the fourth quarter of 2018 were
related to consumer loans. For the year ended December 31, 2018,
net charge-offs were $11.1 million, or 0.12% of total average
loans, compared to $10.1 million, or 0.15%, for the year ended
2017.
Provision for Loan LossesThe provision for loan losses for the
fourth quarter of 2018 was $4.8 million, an increase of $1.7
million compared to the previous quarter and an increase of $1.0
million compared to the same quarter in 2017. The increase in
provision for loan losses from the third quarter of 2018 was
primarily driven by loan growth and higher levels of net
charge-offs in the fourth quarter of 2018.
Allowance for Loan Losses (“ALL”)The ALL decreased $249,000 from
September 30, 2018 to $41.0 million at December 31, 2018 primarily
due to a decrease in historical loss rates. The ALL as a
percentage of the total loan portfolio was 0.42% at December 31,
2018, 0.44% at September 30, 2018, and 0.54% at December 31, 2017.
The year-over-year decline in the allowance ratio was primarily
attributable to the acquisition of Xenith Bankshares, Inc.
("Xenith") on January 1, 2018. In acquisition accounting, there is
no carryover of previously established allowance for loan
losses.
The ratio of the ALL to nonaccrual loans was 152.3% at December
31, 2018, compared to 146.9% at September 30, 2018 and 175.7% at
December 31, 2017. The current level of the allowance for
loan losses reflects specific reserves related to nonperforming
loans, current risk ratings on loans, net charge-off activity, loan
growth, delinquency trends, and other credit risk factors that the
Company considers important in assessing the adequacy of the
allowance for loan losses.
NONINTEREST INCOME
Noninterest income increased $3.6 million to $23.5 million for
the quarter ended December 31, 2018 from $19.9 million in the prior
quarter. The increase in noninterest income was primarily driven by
life insurance proceeds of approximately $976,000, an increase in
customer-related fee income of $222,000 due to higher overdraft
fees and fiduciary and asset management fees, an increase in
interest rate swap fees of $814,000 due to an increase in
transaction volume, and $933,000 adjustment made in the third
quarter to reduce the previously recorded gain from the sale of
Shore Premier.
NONINTEREST EXPENSE
Noninterest expense decreased $1.8 million to $74.5 million for
the quarter ended December 31, 2018 from $76.3 million in the prior
quarter. Excluding merger-related costs of $2.3 million and $1.4
million in the fourth and third quarters of 2018, respectively,
operating noninterest expense(1) decreased $2.7 million, or 3.6%,
to $72.2 million when compared to the third quarter of 2018. The
decrease in operating noninterest expense included a decline in
marketing and advertising expense of $898,000 due to the timing of
marketing campaigns and digital marketing related expenses.
Salaries and benefits expenses declined $698,000, primarily due to
decreases in incentive compensation and benefit costs. Professional
services declined $692,000 primarily due to a decrease in
consulting fees. Additionally, operating noninterest expense
declined due to lower amortization of intangibles of $536,000 and a
decline in branch closure costs of approximately $475,000 compared
to the third quarter of 2018.
Partially offsetting these declines, other real estate owned
(“OREO”) and credit-related expenses increased $574,000 primarily
due to losses on sales of property in the fourth quarter of 2018
compared to gains recognized in the third quarter of 2018.
(1) For a reconciliation of this non-GAAP financial measure, see
Alternative Performance Measures (non-GAAP) section of the Key
Financial Results.
INCOME TAXES
The effective tax rate for the three months ended December 31,
2018 was 16.5% compared to 15.9% for the three months ended
September 30, 2018. The increase in the effective tax rate was
primarily due to an increase in non-deductible merger expenses
related to the Pending Access Merger.
BALANCE SHEET
At December 31, 2018, total assets were $13.8 billion, an
increase of $394.0 million from September 30, 2018, and an increase
of $4.5 billion from December 31, 2017. The increase in assets from
the previous quarter was primarily a result of loan growth and
increases in the investment securities portfolio during the fourth
quarter of 2018. The increase from the prior year was primarily a
result of the Xenith acquisition and loan growth.
At December 31, 2018, loans held for investment (net of deferred
fees and costs) were $9.7 billion, an increase of $304.6 million,
or 12.9% (annualized), from September 30, 2018, while average loans
increased $259.9 million, or 11.2% (annualized), from the prior
quarter. The increase was primarily driven by a combined growth of
$256.9 million in commercial and industrial and commercial real
estate portfolios. Loans held for investment increased $2.6
billion, or 36.1%, from December 31, 2017, while quarterly average
loans increased $2.6 billion or 37.3%, from the prior year. The
increase from the prior year was primarily a result of the Xenith
acquisition.
At December 31, 2018, total deposits were $10.0 billion, an
increase of $136.3 million, or 5.5% (annualized), from September
30, 2018, while average deposits increased $148.5 million, or 6.1%
(annualized), from the prior quarter. Deposits increased $3.0
billion, or 42.6%, from December 31, 2017, while quarterly average
deposits increased $3.0 billion, or 43.1%, from the prior year. The
increase from the prior year was primarily a result of the Xenith
acquisition.
The following table shows the Company's capital ratios at the
quarters ended:
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
Common equity Tier 1
capital ratio (1) |
9.93 |
% |
|
9.92 |
% |
|
9.04 |
% |
Tier 1 capital ratio
(1) |
11.10 |
% |
|
11.12 |
% |
|
10.14 |
% |
Total capital ratio
(1) |
12.88 |
% |
|
12.97 |
% |
|
12.43 |
% |
Leverage ratio (Tier 1
capital to average assets) (1) |
9.71 |
% |
|
9.89 |
% |
|
9.42 |
% |
Common equity to total
assets |
13.98 |
% |
|
14.06 |
% |
|
11.23 |
% |
Tangible common equity
to tangible assets (2) |
8.84 |
% |
|
8.74 |
% |
|
8.14 |
% |
|
|
|
|
|
|
(1) All
ratios at December 31, 2018 are estimates and subject to change
pending the Company’s filing of its FR Y9-C. All other periods are
presented as filed. |
(2) For a
reconciliation of this non-GAAP financial measure, see Alternative
Performance Measures (non-GAAP) section of the Key Financial
Results. |
During the fourth quarter of 2018, the Company declared and paid
cash dividends of $0.23 per common share consistent with the third
quarter of 2018 and an increase of $0.02, or 9.5%, compared to the
fourth quarter of 2017.
ABOUT UNION BANKSHARES CORPORATION
Headquartered in Richmond, Virginia, Union Bankshares
Corporation (Nasdaq: UBSH) is the holding company for Union Bank
& Trust. Union Bank & Trust has 140 branches, 7 of which
are operated as Xenith Bank, a division of Union Bank & Trust
of Richmond, Virginia, and approximately 190 ATMs located
throughout Virginia and in portions of Maryland and North Carolina.
Non-bank affiliates of the holding company include: Old Dominion
Capital Management, Inc., as well as its subsidiary Outfitter
Advisors, Ltd., and Dixon, Hubard, Feinour, & Brown, Inc., all
of which provide investment advisory services, and Union Insurance
Group, LLC, which offers various lines of insurance products.
FOURTH QUARTER AND FULL YEAR 2018 EARNINGS RELEASE
CONFERENCE CALL
Union will hold a conference call on Tuesday, January 22nd, 2019
at 9:00 a.m. Eastern Time during which management will review the
fourth quarter and full year 2018 financial results and provide an
update on recent activities. Interested parties may
participate in the call toll-free by dialing (877) 668-4908;
international callers wishing to participate may do so by dialing
(973) 453-3058. The conference ID number is 4563297.
NON-GAAP FINANCIAL MEASURES
In reporting the results of the quarter and full year ended
December 31, 2018, the Company has provided supplemental
performance measures on a tax-equivalent, tangible, or operating
basis. These non-GAAP financial measures are a supplement to
GAAP, which is used to prepare the Company’s financial statements,
and should not be considered in isolation or as a substitute for
comparable measures calculated in accordance with GAAP. In
addition, the Company’s non-GAAP financial measures may not be
comparable to non-GAAP financial measures of other companies.
The Company uses the non-GAAP financial measures discussed herein
in its analysis of the Company’s performance. The Company’s
management believes that these non-GAAP financial measures provide
additional understanding of ongoing operations, enhance
comparability of results of operations with prior periods and show
the effects of significant gains and charges in the periods
presented without the impact of items or events that may obscure
trends in the Company’s underlying performance. For a
reconciliation of these measures to their most directly comparable
GAAP measures and additional information about these non-GAAP
financial measures, see Alternative Performance Measures (non-GAAP)
section of the Key Financial Results.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, projections, predictions,
expectations, or beliefs about future events or results that are
not statements of historical fact. Such forward-looking statements
are based on various assumptions as of the time they are made, and
are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, performance or
achievements to be materially different from those expressed or
implied by such forward-looking statements. Forward-looking
statements are often accompanied by words that convey projected
future events or outcomes such as “expect,” “believe,” “estimate,”
“plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,”
“opportunity,” “potential,” or words of similar meaning or other
statements concerning opinions or judgment of Union and its
management about future events. Although Union believes that
its expectations with respect to forward-looking statements are
based upon reasonable assumptions within the bounds of its existing
knowledge of its business and operations, there can be no assurance
that actual results, performance, or achievements of Union will not
differ materially from any projected future results, performance,
or achievements expressed or implied by such forward-looking
statements. Actual future results, performance or
achievements may differ materially from historical results or those
anticipated depending on a variety of factors, including, but not
limited to:
- changes in interest rates;
- general economic and financial market conditions in the United
States generally and particularly in the markets in which Union
operates and which its loans are concentrated, including the
effects of declines in real estate values, an increase in
unemployment levels, slowdowns in economic growth, and prolonged
government shutdown;
- Union’s ability to manage its growth or implement its growth
strategy;
- the ability to close the Pending Access Merger on the expected
timeframe, or at all, that closing may be more difficult,
time-consuming or costly than expected, and that if the Pending
Access Merger is consummated, the businesses of Union and Access
may not be integrated successfully or such integration may be more
difficult, time-consuming or costly than expected;
- Union’s ability to recruit and retain key employees;
- an insufficient allowance for loan losses;
- the quality or composition of the loan or investment
portfolios;
- concentrations of loans secured by real estate, particularly
commercial real estate;
- the effectiveness of Union’s credit processes and management of
Union’s credit risk;
- demand for loan products and financial services in Union’s
market area;
- Union’s ability to compete in the market for financial
services;
- technological risks and developments, and cyber threats,
attacks, or events;
- performance by Union’s counterparties or vendors;
- deposit flows;
- the availability of financing and the terms thereof;
- the level of prepayments on loans and mortgage-backed
securities;
- legislative or regulatory changes and requirements;
- the impact of the Tax Cuts and Jobs Act of 2017 (the "Tax
Act"), including, but not limited to, the effect of the lower
corporate tax rate, including on the valuation of Union's tax
assets and liabilities;
- any future refinements to Union's preliminary analysis of the
impact of the Tax Act on Union;
- changes in the effect of the Tax Act due to issuance of
interpretive regulatory guidance or enactment of corrective or
supplement legislation;
- monetary and fiscal policies of the U.S. government including
policies of the U.S. Department of the Treasury and the Board of
Governors of the Federal Reserve System;
- changes to applicable accounting principles and guidelines;
and
- other factors, many of which are beyond the control of
Union.
Please refer to the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of Union’s Annual Report on Form
10-K for the year ended December 31, 2017 and comparable “Risk
Factors” sections of Union’s Quarterly Reports on Form 10-Q and
related disclosures in other filings, which have been filed with
the SEC and are available on the SEC’s website at www.sec.gov. All
of the forward-looking statements made in this press release are
expressly qualified by the cautionary statements contained or
referred to herein. The actual results or developments anticipated
may not be realized or, even if substantially realized, they may
not have the expected consequences to or effects on Union or its
businesses or operations. Readers are cautioned not to rely too
heavily on the forward-looking statements contained in this press
release. Forward-looking statements speak only as of the date they
are made and Union does not undertake any obligation to update,
revise or clarify these forward-looking statements, whether as a
result of new information, future events or otherwise.
|
|
|
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES |
KEY FINANCIAL RESULTS |
(Dollars
in thousands, except share data) |
|
As of & For Three Months
Ended |
|
As of & For Year Ended |
|
12/31/18 |
|
9/30/18 |
|
12/31/17 |
|
12/31/18 |
|
12/31/17 |
Results of
Operations |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Interest and dividend
income |
$ |
140,636 |
|
|
$ |
131,363 |
|
|
$ |
87,179 |
|
|
$ |
528,788 |
|
|
$ |
329,044 |
|
Interest
expense |
31,547 |
|
|
25,400 |
|
|
14,089 |
|
|
102,097 |
|
|
50,037 |
|
Net
interest income |
109,089 |
|
|
105,963 |
|
|
73,090 |
|
|
426,691 |
|
|
279,007 |
|
Provision
for credit losses |
4,725 |
|
|
3,340 |
|
|
3,458 |
|
|
13,736 |
|
|
10,802 |
|
Net
interest income after provision for credit losses |
104,364 |
|
|
102,623 |
|
|
69,632 |
|
|
412,955 |
|
|
268,205 |
|
Noninterest income |
23,487 |
|
|
19,887 |
|
|
15,124 |
|
|
104,241 |
|
|
62,429 |
|
Noninterest expenses |
74,533 |
|
|
76,349 |
|
|
57,796 |
|
|
337,767 |
|
|
225,668 |
|
Income
before income taxes |
53,318 |
|
|
46,161 |
|
|
26,960 |
|
|
179,429 |
|
|
104,966 |
|
Income
tax expense |
9,041 |
|
|
7,399 |
|
|
11,867 |
|
|
30,016 |
|
|
32,790 |
|
Income
from continuing operations |
44,277 |
|
|
38,762 |
|
|
15,093 |
|
|
149,413 |
|
|
72,176 |
|
Discontinued operations, net of tax |
(192 |
) |
|
(565 |
) |
|
92 |
|
|
(3,165 |
) |
|
747 |
|
Net
income |
$ |
44,085 |
|
|
$ |
38,197 |
|
|
$ |
15,185 |
|
|
$ |
146,248 |
|
|
$ |
72,923 |
|
|
|
|
|
|
|
|
|
|
|
Interest
earned on earning assets (FTE) (1) |
$ |
142,970 |
|
|
$ |
133,377 |
|
|
$ |
90,263 |
|
|
$ |
536,981 |
|
|
$ |
340,810 |
|
Net
interest income (FTE) (1) |
111,424 |
|
|
107,977 |
|
|
76,173 |
|
|
434,884 |
|
|
290,774 |
|
|
|
|
|
|
|
|
|
|
|
Key
Ratios |
|
|
|
|
|
|
|
|
|
Earnings
per common share, diluted |
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
0.35 |
|
|
$ |
2.22 |
|
|
$ |
1.67 |
|
Return on
average assets (ROA) |
1.29 |
% |
|
1.17 |
% |
|
0.66 |
% |
|
1.11 |
% |
|
0.83 |
% |
Return on
average equity (ROE) |
9.21 |
% |
|
8.06 |
% |
|
5.75 |
% |
|
7.85 |
% |
|
7.07 |
% |
Return on
average tangible common equity (ROTCE) (2) |
16.42 |
% |
|
14.72 |
% |
|
8.70 |
% |
|
14.40 |
% |
|
10.75 |
% |
Efficiency ratio |
56.22 |
% |
|
60.67 |
% |
|
65.52 |
% |
|
63.62 |
% |
|
66.09 |
% |
Net
interest margin |
3.62 |
% |
|
3.69 |
% |
|
3.51 |
% |
|
3.67 |
% |
|
3.48 |
% |
Net
interest margin (FTE) (1) |
3.70 |
% |
|
3.76 |
% |
|
3.64 |
% |
|
3.74 |
% |
|
3.63 |
% |
Yields on
earning assets (FTE) (1) |
4.74 |
% |
|
4.65 |
% |
|
4.32 |
% |
|
4.62 |
% |
|
4.25 |
% |
Cost of
interest-bearing liabilities |
1.34 |
% |
|
1.15 |
% |
|
0.87 |
% |
|
1.12 |
% |
|
0.80 |
% |
Cost of
deposits |
0.76 |
% |
|
0.65 |
% |
|
0.44 |
% |
|
0.61 |
% |
|
0.39 |
% |
Cost of
funds |
1.04 |
% |
|
0.89 |
% |
|
0.68 |
% |
|
0.88 |
% |
|
0.62 |
% |
|
|
|
|
|
|
|
|
|
|
Operating
Measures (4) |
|
|
|
|
|
|
|
|
|
Net
operating earnings |
$ |
46,248 |
|
|
$ |
39,326 |
|
|
$ |
22,821 |
|
|
$ |
178,313 |
|
|
$ |
83,578 |
|
Operating
earnings per share, diluted |
$ |
0.70 |
|
|
$ |
0.60 |
|
|
$ |
0.52 |
|
|
$ |
2.71 |
|
|
$ |
1.91 |
|
Operating
ROA |
1.36 |
% |
|
1.21 |
% |
|
1.00 |
% |
|
1.35 |
% |
|
0.95 |
% |
Operating
ROE |
9.66 |
% |
|
8.30 |
% |
|
8.63 |
% |
|
9.57 |
% |
|
8.11 |
% |
Operating
ROTCE |
17.18 |
% |
|
15.13 |
% |
|
12.82 |
% |
|
17.35 |
% |
|
12.24 |
% |
Operating
efficiency ratio (FTE) (1) |
53.53 |
% |
|
58.59 |
% |
|
61.21 |
% |
|
55.28 |
% |
|
62.36 |
% |
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
Earnings
per common share, basic |
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
0.35 |
|
|
$ |
2.22 |
|
|
$ |
1.67 |
|
Earnings
per common share, diluted |
0.67 |
|
|
0.58 |
|
|
0.35 |
|
|
2.22 |
|
|
1.67 |
|
Cash
dividends paid per common share |
0.23 |
|
|
0.23 |
|
|
0.21 |
|
|
0.88 |
|
|
0.81 |
|
Market
value per share |
28.23 |
|
|
38.53 |
|
|
36.17 |
|
|
28.23 |
|
|
36.17 |
|
Book
value per common share |
29.34 |
|
|
28.68 |
|
|
24.10 |
|
|
29.34 |
|
|
24.10 |
|
Tangible
book value per common share (2) |
17.51 |
|
|
16.79 |
|
|
16.88 |
|
|
17.51 |
|
|
16.88 |
|
Price to
earnings ratio, diluted |
12.72 |
|
|
16.74 |
|
|
26.05 |
|
|
10.62 |
|
|
21.66 |
|
Price to
book value per common share ratio |
0.96 |
|
|
1.34 |
|
|
1.50 |
|
|
0.96 |
|
|
1.50 |
|
Price to
tangible book value per common share ratio (2) |
1.61 |
|
|
2.29 |
|
|
2.14 |
|
|
1.61 |
|
|
2.14 |
|
Weighted
average common shares outstanding, basic |
65,982,304 |
|
|
65,974,702 |
|
|
43,740,001 |
|
|
65,859,165 |
|
|
43,698,897 |
|
Weighted
average common shares outstanding, diluted |
66,013,326 |
|
|
66,013,152 |
|
|
43,816,018 |
|
|
65,908,571 |
|
|
43,779,744 |
|
Common
shares outstanding at end of period |
65,977,149 |
|
|
65,982,669 |
|
|
43,743,318 |
|
|
65,977,149 |
|
|
43,743,318 |
|
|
As of & For Three Months
Ended |
|
As of & For Year End |
|
12/31/18 |
|
9/30/18 |
|
12/31/17 |
|
12/31/18 |
|
12/31/17 |
Capital
Ratios |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Common
equity Tier 1 capital ratio (5) |
9.93 |
% |
|
9.92 |
% |
|
9.04 |
% |
|
9.93 |
% |
|
9.04 |
% |
Tier 1
capital ratio (5) |
11.10 |
% |
|
11.12 |
% |
|
10.14 |
% |
|
11.10 |
% |
|
10.14 |
% |
Total
capital ratio (5) |
12.88 |
% |
|
12.97 |
% |
|
12.43 |
% |
|
12.88 |
% |
|
12.43 |
% |
Leverage
ratio (Tier 1 capital to average assets) (5) |
9.71 |
% |
|
9.89 |
% |
|
9.42 |
% |
|
9.71 |
% |
|
9.42 |
% |
Common
equity to total assets |
13.98 |
% |
|
14.06 |
% |
|
11.23 |
% |
|
13.98 |
% |
|
11.23 |
% |
Tangible
common equity to tangible assets (2) |
8.84 |
% |
|
8.74 |
% |
|
8.14 |
% |
|
8.84 |
% |
|
8.14 |
% |
|
|
|
|
|
|
|
|
|
|
Financial
Condition |
|
|
|
|
|
|
|
|
|
Assets |
$ |
13,765,599 |
|
|
$ |
13,371,742 |
|
|
$ |
9,315,179 |
|
|
$ |
13,765,599 |
|
|
$ |
9,315,179 |
|
Loans
held for investment |
9,716,207 |
|
|
9,411,598 |
|
|
7,141,552 |
|
|
9,716,207 |
|
|
7,141,552 |
|
Securities |
2,391,695 |
|
|
2,258,239 |
|
|
1,249,144 |
|
|
2,391,695 |
|
|
1,249,144 |
|
Earning
Assets |
12,202,023 |
|
|
11,808,717 |
|
|
8,513,145 |
|
|
12,202,023 |
|
|
8,513,145 |
|
Goodwill |
727,168 |
|
|
727,699 |
|
|
298,528 |
|
|
727,168 |
|
|
298,528 |
|
Amortizable intangibles, net |
48,685 |
|
|
51,563 |
|
|
14,803 |
|
|
48,685 |
|
|
14,803 |
|
Deposits |
9,970,960 |
|
|
9,834,695 |
|
|
6,991,718 |
|
|
9,970,960 |
|
|
6,991,718 |
|
Borrowings |
1,756,278 |
|
|
1,554,642 |
|
|
1,219,414 |
|
|
1,756,278 |
|
|
1,219,414 |
|
Stockholders' equity |
1,924,581 |
|
|
1,880,029 |
|
|
1,046,329 |
|
|
1,924,581 |
|
|
1,046,329 |
|
Tangible
common equity (2) |
1,148,728 |
|
|
1,100,767 |
|
|
732,998 |
|
|
1,148,728 |
|
|
732,998 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment, net of deferred fees and costs |
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
1,194,821 |
|
|
$ |
1,178,054 |
|
|
$ |
948,791 |
|
|
$ |
1,194,821 |
|
|
$ |
948,791 |
|
Commercial real estate - owner occupied |
1,337,345 |
|
|
1,283,125 |
|
|
943,933 |
|
|
1,337,345 |
|
|
943,933 |
|
Commercial real estate - non-owner occupied |
2,467,410 |
|
|
2,427,251 |
|
|
1,713,659 |
|
|
2,467,410 |
|
|
1,713,659 |
|
Multifamily real estate |
548,231 |
|
|
542,662 |
|
|
357,079 |
|
|
548,231 |
|
|
357,079 |
|
Commercial & Industrial |
1,317,135 |
|
|
1,154,583 |
|
|
612,023 |
|
|
1,317,135 |
|
|
612,023 |
|
Residential 1-4 Family - commercial |
713,750 |
|
|
719,798 |
|
|
612,395 |
|
|
713,750 |
|
|
612,395 |
|
Residential 1-4 Family - mortgage |
600,578 |
|
|
611,728 |
|
|
485,690 |
|
|
600,578 |
|
|
485,690 |
|
Auto |
301,943 |
|
|
306,196 |
|
|
282,474 |
|
|
301,943 |
|
|
282,474 |
|
HELOC |
613,383 |
|
|
612,116 |
|
|
537,521 |
|
|
613,383 |
|
|
537,521 |
|
Consumer |
379,694 |
|
|
345,320 |
|
|
408,667 |
|
|
379,694 |
|
|
408,667 |
|
Other
Commercial |
241,917 |
|
|
230,765 |
|
|
239,320 |
|
|
241,917 |
|
|
239,320 |
|
Total
loans held for investment |
$ |
9,716,207 |
|
|
$ |
9,411,598 |
|
|
$ |
7,141,552 |
|
|
$ |
9,716,207 |
|
|
$ |
7,141,552 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
2,288,523 |
|
|
$ |
2,205,262 |
|
|
$ |
1,929,416 |
|
|
$ |
2,288,523 |
|
|
$ |
1,929,416 |
|
Money
market accounts |
2,875,301 |
|
|
2,704,480 |
|
|
1,685,174 |
|
|
2,875,301 |
|
|
1,685,174 |
|
Savings
accounts |
622,823 |
|
|
635,788 |
|
|
546,274 |
|
|
622,823 |
|
|
546,274 |
|
Time
deposits of $100,000 and over |
1,067,181 |
|
|
1,078,448 |
|
|
624,112 |
|
|
1,067,181 |
|
|
624,112 |
|
Other
time deposits |
1,022,525 |
|
|
1,020,830 |
|
|
704,534 |
|
|
1,022,525 |
|
|
704,534 |
|
Total
interest-bearing deposits |
$ |
7,876,353 |
|
|
$ |
7,644,808 |
|
|
$ |
5,489,510 |
|
|
$ |
7,876,353 |
|
|
$ |
5,489,510 |
|
Demand
deposits |
2,094,607 |
|
|
2,189,887 |
|
|
1,502,208 |
|
|
2,094,607 |
|
|
1,502,208 |
|
Total
deposits |
$ |
9,970,960 |
|
|
$ |
9,834,695 |
|
|
$ |
6,991,718 |
|
|
$ |
9,970,960 |
|
|
$ |
6,991,718 |
|
|
|
|
|
|
|
|
|
|
|
Averages |
|
|
|
|
|
|
|
|
|
Assets |
$ |
13,538,160 |
|
|
$ |
12,947,352 |
|
|
$ |
9,085,211 |
|
|
$ |
13,181,609 |
|
|
$ |
8,820,142 |
|
Loans
held for investment |
9,557,160 |
|
|
9,297,213 |
|
|
6,962,299 |
|
|
9,584,785 |
|
|
6,701,101 |
|
Securities |
2,340,051 |
|
|
1,966,010 |
|
|
1,238,663 |
|
|
1,877,018 |
|
|
1,230,105 |
|
Earning
assets |
11,961,234 |
|
|
11,383,320 |
|
|
8,293,366 |
|
|
11,620,893 |
|
|
8,016,311 |
|
Deposits |
9,951,983 |
|
|
9,803,475 |
|
|
6,955,949 |
|
|
9,717,663 |
|
|
6,701,475 |
|
Time
deposits |
2,083,270 |
|
|
2,079,686 |
|
|
1,335,357 |
|
|
2,078,073 |
|
|
1,271,649 |
|
Interest-bearing deposits |
7,789,642 |
|
|
7,635,710 |
|
|
5,435,705 |
|
|
7,617,174 |
|
|
5,234,102 |
|
Borrowings |
1,575,173 |
|
|
1,155,093 |
|
|
1,022,307 |
|
|
1,489,542 |
|
|
1,028,434 |
|
Interest-bearing liabilities |
9,364,815 |
|
|
8,790,803 |
|
|
6,458,012 |
|
|
9,106,716 |
|
|
6,262,536 |
|
Stockholders' equity |
1,899,249 |
|
|
1,880,582 |
|
|
1,048,632 |
|
|
1,863,215 |
|
|
1,030,847 |
|
Tangible
common equity (2) |
1,121,788 |
|
|
1,103,530 |
|
|
734,847 |
|
|
1,086,272 |
|
|
715,125 |
|
|
As of & For Three Months
Ended |
|
As of & For Year Ended |
|
12/31/18 |
|
9/30/18 |
|
12/31/17 |
|
12/31/18 |
|
12/31/17 |
Asset
Quality |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Allowance for Loan Losses (ALL) |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
41,294 |
|
|
$ |
41,270 |
|
|
$ |
37,162 |
|
|
$ |
38,208 |
|
|
$ |
37,192 |
|
Add:
Recoveries |
830 |
|
|
1,401 |
|
|
696 |
|
|
4,912 |
|
|
3,255 |
|
Less:
Charge-offs |
5,875 |
|
|
4,560 |
|
|
3,361 |
|
|
15,974 |
|
|
13,310 |
|
Add:
Provision for loan losses |
4,800 |
|
|
3,100 |
|
|
3,758 |
|
|
14,084 |
|
|
11,117 |
|
Add:
Provision for loan losses included in discontinued operations |
(4 |
) |
|
83 |
|
|
(47 |
) |
|
(185 |
) |
|
(46 |
) |
Ending
balance |
$ |
41,045 |
|
|
$ |
41,294 |
|
|
$ |
38,208 |
|
|
$ |
41,045 |
|
|
$ |
38,208 |
|
|
|
|
|
|
|
|
|
|
|
ALL /
total outstanding loans |
0.42 |
% |
|
0.44 |
% |
|
0.54 |
% |
|
0.42 |
% |
|
0.54 |
% |
Net
charge-offs / total average loans |
0.21 |
% |
|
0.13 |
% |
|
0.15 |
% |
|
0.12 |
% |
|
0.15 |
% |
Provision
/ total average loans |
0.20 |
% |
|
0.13 |
% |
|
0.21 |
% |
|
0.15 |
% |
|
0.17 |
% |
|
|
|
|
|
|
|
|
|
|
Total PCI
loans, net of fair value mark |
$ |
90,221 |
|
|
$ |
94,746 |
|
|
$ |
39,021 |
|
|
$ |
90,221 |
|
|
$ |
39,021 |
|
Remaining
fair value mark on purchased performing loans |
30,281 |
|
|
33,428 |
|
|
13,726 |
|
|
30,281 |
|
|
13,726 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
8,018 |
|
|
$ |
9,221 |
|
|
$ |
5,610 |
|
|
$ |
8,018 |
|
|
$ |
5,610 |
|
Commercial real estate - owner occupied |
3,636 |
|
|
3,202 |
|
|
2,708 |
|
|
3,636 |
|
|
2,708 |
|
Commercial real estate - non-owner occupied |
1,789 |
|
|
1,812 |
|
|
2,992 |
|
|
1,789 |
|
|
2,992 |
|
Commercial & Industrial |
1,524 |
|
|
1,404 |
|
|
316 |
|
|
1,524 |
|
|
316 |
|
Residential 1-4 Family - commercial |
2,481 |
|
|
1,956 |
|
|
1,085 |
|
|
2,481 |
|
|
1,085 |
|
Residential 1-4 Family - mortgage |
7,276 |
|
|
8,535 |
|
|
6,269 |
|
|
7,276 |
|
|
6,269 |
|
Auto |
576 |
|
|
525 |
|
|
413 |
|
|
576 |
|
|
413 |
|
HELOC |
1,518 |
|
|
1,273 |
|
|
2,075 |
|
|
1,518 |
|
|
2,075 |
|
Consumer
and all other |
135 |
|
|
182 |
|
|
275 |
|
|
135 |
|
|
275 |
|
Nonaccrual loans |
$ |
26,953 |
|
|
$ |
28,110 |
|
|
$ |
21,743 |
|
|
$ |
26,953 |
|
|
$ |
21,743 |
|
Foreclosed property |
6,722 |
|
|
6,800 |
|
|
5,253 |
|
|
6,722 |
|
|
5,253 |
|
Total
nonperforming assets (NPAs) |
$ |
33,675 |
|
|
$ |
34,910 |
|
|
$ |
26,996 |
|
|
$ |
33,675 |
|
|
$ |
26,996 |
|
Construction and land development |
$ |
180 |
|
|
$ |
442 |
|
|
$ |
1,340 |
|
|
$ |
180 |
|
|
$ |
1,340 |
|
Commercial real estate - owner occupied |
3,193 |
|
|
3,586 |
|
|
— |
|
|
3,193 |
|
|
— |
|
Commercial real estate - non-owner occupied |
— |
|
|
— |
|
|
194 |
|
|
— |
|
|
194 |
|
Commercial & Industrial |
132 |
|
|
256 |
|
|
214 |
|
|
132 |
|
|
214 |
|
Residential 1-4 Family - commercial |
1,409 |
|
|
378 |
|
|
579 |
|
|
1,409 |
|
|
579 |
|
Residential 1-4 Family - mortgage |
2,437 |
|
|
2,543 |
|
|
546 |
|
|
2,437 |
|
|
546 |
|
Auto |
195 |
|
|
211 |
|
|
40 |
|
|
195 |
|
|
40 |
|
HELOC |
440 |
|
|
1,291 |
|
|
217 |
|
|
440 |
|
|
217 |
|
Consumer
and all other |
870 |
|
|
825 |
|
|
402 |
|
|
870 |
|
|
402 |
|
Loans ≥
90 days and still accruing |
$ |
8,856 |
|
|
$ |
9,532 |
|
|
$ |
3,532 |
|
|
$ |
8,856 |
|
|
$ |
3,532 |
|
Total
NPAs and loans ≥ 90 days |
$ |
42,531 |
|
|
$ |
44,442 |
|
|
$ |
30,528 |
|
|
$ |
42,531 |
|
|
$ |
30,528 |
|
NPAs /
total outstanding loans |
0.35 |
% |
|
0.37 |
% |
|
0.38 |
% |
|
0.35 |
% |
|
0.38 |
% |
NPAs /
total assets |
0.24 |
% |
|
0.26 |
% |
|
0.29 |
% |
|
0.24 |
% |
|
0.29 |
% |
ALL /
nonaccrual loans |
152.28 |
% |
|
146.90 |
% |
|
175.73 |
% |
|
152.28 |
% |
|
175.73 |
% |
ALL /
nonperforming assets |
121.89 |
% |
|
118.29 |
% |
|
141.53 |
% |
|
121.89 |
% |
|
141.53 |
% |
Past Due Detail |
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
759 |
|
|
$ |
1,351 |
|
|
$ |
1,248 |
|
|
$ |
759 |
|
|
$ |
1,248 |
|
Commercial real estate - owner occupied |
8,755 |
|
|
4,218 |
|
|
444 |
|
|
8,755 |
|
|
444 |
|
Commercial real estate - non-owner occupied |
338 |
|
|
492 |
|
|
187 |
|
|
338 |
|
|
187 |
|
Multifamily real estate |
— |
|
|
553 |
|
|
— |
|
|
— |
|
|
— |
|
Commercial & Industrial |
3,353 |
|
|
2,239 |
|
|
1,147 |
|
|
3,353 |
|
|
1,147 |
|
Residential 1-4 Family - commercial |
6,619 |
|
|
2,535 |
|
|
1,682 |
|
|
6,619 |
|
|
1,682 |
|
Residential 1-4 Family - mortgage |
12,049 |
|
|
4,506 |
|
|
3,838 |
|
|
12,049 |
|
|
3,838 |
|
Auto |
3,320 |
|
|
2,414 |
|
|
3,541 |
|
|
3,320 |
|
|
3,541 |
|
HELOC |
4,611 |
|
|
4,783 |
|
|
2,382 |
|
|
4,611 |
|
|
2,382 |
|
Consumer
and all other |
1,630 |
|
|
2,640 |
|
|
2,404 |
|
|
1,630 |
|
|
2,404 |
|
Loans
30-59 days past due |
$ |
41,434 |
|
|
$ |
25,731 |
|
|
$ |
16,873 |
|
|
$ |
41,434 |
|
|
$ |
16,873 |
|
|
As of & For Three Months
Ended |
|
As of & For Year Ended |
|
12/31/18 |
|
9/30/18 |
|
12/31/17 |
|
12/31/18 |
|
12/31/17 |
Past Due Detail cont'd |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Construction and land
development |
$ |
6 |
|
|
$ |
1,826 |
|
|
$ |
898 |
|
|
$ |
6 |
|
|
$ |
898 |
|
Commercial real estate - owner occupied |
1,142 |
|
|
539 |
|
|
81 |
|
|
1,142 |
|
|
81 |
|
Commercial real estate - non-owner occupied |
41 |
|
|
— |
|
|
84 |
|
|
41 |
|
|
84 |
|
Multifamily Real Estate |
146 |
|
|
— |
|
|
— |
|
|
146 |
|
|
— |
|
Commercial & Industrial |
389 |
|
|
428 |
|
|
109 |
|
|
389 |
|
|
109 |
|
Residential 1-4 Family - commercial |
1,577 |
|
|
1,892 |
|
|
700 |
|
|
1,577 |
|
|
700 |
|
Residential 1-4 Family - mortgage |
5,143 |
|
|
3,793 |
|
|
2,541 |
|
|
5,143 |
|
|
2,541 |
|
Auto |
403 |
|
|
299 |
|
|
185 |
|
|
403 |
|
|
185 |
|
HELOC |
1,644 |
|
|
1,392 |
|
|
717 |
|
|
1,644 |
|
|
717 |
|
Consumer
and all other |
1,096 |
|
|
1,140 |
|
|
2,052 |
|
|
1,096 |
|
|
2,052 |
|
Loans
60-89 days past due |
$ |
11,587 |
|
|
$ |
11,309 |
|
|
$ |
7,367 |
|
|
$ |
11,587 |
|
|
$ |
7,367 |
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings |
|
|
|
|
|
|
|
|
|
Performing |
$ |
19,201 |
|
|
$ |
19,854 |
|
|
$ |
14,553 |
|
|
$ |
19,201 |
|
|
$ |
14,553 |
|
Nonperforming |
7,397 |
|
|
8,425 |
|
|
2,849 |
|
|
7,397 |
|
|
2,849 |
|
Total
troubled debt restructurings |
$ |
26,598 |
|
|
$ |
28,279 |
|
|
$ |
17,402 |
|
|
$ |
26,598 |
|
|
$ |
17,402 |
|
|
|
|
|
|
|
|
|
|
|
Alternative
Performance Measures (non-GAAP) |
|
|
|
|
|
|
|
|
|
Net interest income (FTE) |
|
|
|
|
|
|
|
|
|
Net
interest income (GAAP) |
$ |
109,089 |
|
|
$ |
105,963 |
|
|
$ |
73,090 |
|
|
$ |
426,691 |
|
|
$ |
279,007 |
|
FTE
adjustment |
2,335 |
|
|
2,014 |
|
|
3,083 |
|
|
8,193 |
|
|
11,767 |
|
Net
interest income (FTE) (non-GAAP) (1) |
$ |
111,424 |
|
|
$ |
107,977 |
|
|
$ |
76,173 |
|
|
$ |
434,884 |
|
|
$ |
290,774 |
|
Average
earning assets |
11,961,234 |
|
|
11,383,320 |
|
|
8,293,366 |
|
|
11,620,893 |
|
|
8,016,311 |
|
Net
interest margin |
3.62 |
% |
|
3.69 |
% |
|
3.51 |
% |
|
3.67 |
% |
|
3.48 |
% |
Net
interest margin (FTE) (1) |
3.70 |
% |
|
3.76 |
% |
|
3.64 |
% |
|
3.74 |
% |
|
3.63 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible Assets |
|
|
|
|
|
|
|
|
|
Ending
assets (GAAP) |
$ |
13,765,599 |
|
|
$ |
13,371,742 |
|
|
$ |
9,315,179 |
|
|
$ |
13,765,599 |
|
|
$ |
9,315,179 |
|
Less:
Ending goodwill |
727,168 |
|
|
727,699 |
|
|
298,528 |
|
|
727,168 |
|
|
298,528 |
|
Less:
Ending amortizable intangibles |
48,685 |
|
|
51,563 |
|
|
14,803 |
|
|
48,685 |
|
|
14,803 |
|
Ending
tangible assets (non-GAAP) |
$ |
12,989,746 |
|
|
$ |
12,592,480 |
|
|
$ |
9,001,848 |
|
|
$ |
12,989,746 |
|
|
$ |
9,001,848 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity (2) |
|
|
|
|
|
|
|
|
|
Ending
equity (GAAP) |
$ |
1,924,581 |
|
|
$ |
1,880,029 |
|
|
$ |
1,046,329 |
|
|
$ |
1,924,581 |
|
|
$ |
1,046,329 |
|
Less:
Ending goodwill |
727,168 |
|
|
727,699 |
|
|
298,528 |
|
|
727,168 |
|
|
298,528 |
|
Less:
Ending amortizable intangibles |
48,685 |
|
|
51,563 |
|
|
14,803 |
|
|
48,685 |
|
|
14,803 |
|
Ending
tangible common equity (non-GAAP) |
$ |
1,148,728 |
|
|
$ |
1,100,767 |
|
|
$ |
732,998 |
|
|
$ |
1,148,728 |
|
|
$ |
732,998 |
|
|
|
|
|
|
|
|
|
|
|
Average
equity (GAAP) |
$ |
1,899,249 |
|
|
$ |
1,880,582 |
|
|
$ |
1,048,632 |
|
|
$ |
1,863,216 |
|
|
$ |
1,030,847 |
|
Less:
Average goodwill |
727,544 |
|
|
723,785 |
|
|
298,385 |
|
|
725,597 |
|
|
298,240 |
|
Less:
Average amortizable intangibles |
49,917 |
|
|
53,267 |
|
|
15,400 |
|
|
51,347 |
|
|
17,482 |
|
Average
tangible common equity (non-GAAP) |
$ |
1,121,788 |
|
|
$ |
1,103,530 |
|
|
$ |
734,847 |
|
|
$ |
1,086,272 |
|
|
$ |
715,125 |
|
|
|
|
|
|
|
|
|
|
|
Operating Measures (4) |
|
|
|
|
|
|
|
|
|
Net
income (GAAP) |
$ |
44,085 |
|
|
$ |
38,197 |
|
|
$ |
15,185 |
|
|
$ |
146,248 |
|
|
$ |
72,923 |
|
Plus:
Merger-related costs, net of tax |
2,163 |
|
|
1,129 |
|
|
1,386 |
|
|
32,065 |
|
|
4,405 |
|
Plus:
Nonrecurring tax expenses |
— |
|
|
— |
|
|
6,250 |
|
|
— |
|
|
6,250 |
|
Net
operating earnings (non-GAAP) |
$ |
46,248 |
|
|
$ |
39,326 |
|
|
$ |
22,821 |
|
|
$ |
178,313 |
|
|
$ |
83,578 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
74,533 |
|
|
$ |
76,349 |
|
|
$ |
57,796 |
|
|
$ |
337,767 |
|
|
$ |
225,668 |
|
Less:
Merger-related costs |
2,314 |
|
|
1,429 |
|
|
1,917 |
|
|
39,728 |
|
|
5,393 |
|
Operating
noninterest expense (non-GAAP) |
$ |
72,219 |
|
|
$ |
74,920 |
|
|
$ |
55,879 |
|
|
$ |
298,039 |
|
|
$ |
220,275 |
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (FTE) (non-GAAP) (1) |
$ |
111,424 |
|
|
$ |
107,977 |
|
|
$ |
76,173 |
|
|
$ |
434,886 |
|
|
$ |
290,774 |
|
Noninterest income (GAAP) |
23,487 |
|
|
19,887 |
|
|
15,124 |
|
|
104,241 |
|
|
62,429 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
56.22 |
% |
|
60.67 |
% |
|
65.52 |
% |
|
63.62 |
% |
|
66.09 |
% |
Operating
efficiency ratio (FTE) |
53.53 |
% |
|
58.59 |
% |
|
61.21 |
% |
|
55.28 |
% |
|
62.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months
Ended |
|
As of & For Year Ended |
|
12/31/18 |
|
9/30/18 |
|
12/31/17 |
|
12/31/18 |
|
12/31/17 |
ROTCE (2)(3) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net
Income (GAAP) |
$ |
44,085 |
|
|
$ |
38,197 |
|
|
$ |
15,185 |
|
|
$ |
146,248 |
|
|
$ |
72,923 |
|
Plus:
Amortization of intangibles, tax effected |
2,334 |
|
|
2,757 |
|
|
928 |
|
|
10,143 |
|
|
3,957 |
|
Net
Income before amortization of intangibles (non-GAAP) |
$ |
46,419 |
|
|
$ |
40,954 |
|
|
$ |
16,113 |
|
|
$ |
156,391 |
|
|
$ |
76,880 |
|
|
|
|
|
|
|
|
|
|
|
Average
tangible common equity (non-GAAP) |
$ |
1,121,788 |
|
|
$ |
1,103,530 |
|
|
$ |
734,847 |
|
|
$ |
1,086,272 |
|
|
$ |
715,125 |
|
Return on
average tangible common equity (non-GAAP) |
16.42 |
% |
|
14.72 |
% |
|
8.70 |
% |
|
14.40 |
% |
|
10.75 |
% |
|
|
|
|
|
|
|
|
|
|
Operating ROTCE (2)(3) |
|
|
|
|
|
|
|
|
|
Operating
Net Income (non-GAAP) |
$ |
46,248 |
|
|
$ |
39,326 |
|
|
$ |
22,821 |
|
|
$ |
178,313 |
|
|
$ |
83,578 |
|
Plus:
Amortization of intangibles, tax effected |
2,334 |
|
|
2,757 |
|
|
928 |
|
|
10,143 |
|
|
3,957 |
|
Net
Income before amortization of intangibles (non-GAAP) |
$ |
48,582 |
|
|
$ |
42,083 |
|
|
$ |
23,749 |
|
|
$ |
188,456 |
|
|
$ |
87,535 |
|
|
|
|
|
|
|
|
|
|
|
Average
tangible common equity (non-GAAP) |
$ |
1,121,788 |
|
|
$ |
1,103,530 |
|
|
$ |
734,847 |
|
|
$ |
1,086,272 |
|
|
$ |
715,125 |
|
Operating
return on average tangible common equity (non-GAAP) |
17.18 |
% |
|
15.13 |
% |
|
12.82 |
% |
|
17.35 |
% |
|
12.24 |
% |
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
End of
period full-time employees |
1,609 |
|
|
1,621 |
|
|
1,419 |
|
|
1,609 |
|
|
1,419 |
|
Number of
full-service branches |
140 |
|
|
140 |
|
|
111 |
|
|
140 |
|
|
111 |
|
Number of
full automatic transaction machines ("ATMs") |
188 |
|
|
190 |
|
|
176 |
|
|
188 |
|
|
176 |
|
(1) These are non-GAAP financial measures. Net interest
income (FTE), which is used in computing net interest margin (FTE)
and efficiency ratio (FTE), provides valuable additional insight
into the net interest margin and the efficiency ratio by adjusting
for differences in tax treatment of interest income sources.
The entire FTE adjustment is attributable to interest income on
earning assets, which is used in computing yield on earning
assets. Interest expense and the related cost of
interest-bearing liabilities and cost of funds ratios are not
affected by the FTE components.
(2) These are non-GAAP financial measures. Tangible common
equity is used in the calculation of certain profitability,
capital, and per share ratios. The Company believes tangible
common equity and the related ratios are meaningful measures of
capital adequacy because they provide a meaningful base for
period-to-period and company-to-company comparisons, which the
Company believes will assist investors in assessing the capital of
the Company and its ability to absorb potential losses.
(3) These are non-GAAP financial measures. The Company
believes that ROTCE is a meaningful supplement to GAAP financial
measures and useful to investors because it measures the
performance of a business consistently across time without regard
to whether components of the business were acquired or developed
internally.
In prior periods, the Company has not added amortization of
intangibles, tax effected to net income (GAAP) and operating net
income (non-GAAP) when calculating ROTCE and operating ROTCE,
respectively. The Company has adjusted its presentation for all
periods in this release.
(4) These are non-GAAP financial measures. Operating
measures exclude merger-related costs unrelated to the Company’s
normal operations. The Company believes these measures are useful
to investors as they exclude certain costs resulting from
acquisition activity and allow investors to more clearly see the
combined economic results of the organization's operations.
(5) All ratios at December 31, 2018 are estimates and
subject to change pending the Company’s filing of its FR Y9-C. All
other periods are presented as filed.
UNION BANKSHARES CORPORATION AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Dollars in thousands,
except share data) |
|
|
|
|
December 31, |
|
December 31, |
|
2018 |
|
2017 |
ASSETS |
(unaudited) |
|
(unaudited) |
Cash and cash equivalents: |
|
|
|
Cash and due from
banks |
$ |
166,927 |
|
|
$ |
117,586 |
|
Interest-bearing deposits in other banks |
94,056 |
|
|
81,291 |
|
Federal
funds sold |
216 |
|
|
496 |
|
Total cash and cash equivalents |
261,199 |
|
|
199,373 |
|
Securities available for sale, at fair value |
1,774,821 |
|
|
974,222 |
|
Securities held to maturity, at carrying
value |
492,272 |
|
|
199,639 |
|
Restricted stock, at cost |
124,602 |
|
|
75,283 |
|
Loans held for investment, net of deferred fees and
costs |
9,716,207 |
|
|
7,141,552 |
|
Less allowance for loan losses |
41,045 |
|
|
38,208 |
|
Net loans held for investment |
9,675,162 |
|
|
7,103,344 |
|
Premises and equipment, net |
146,967 |
|
|
119,604 |
|
Goodwill |
727,168 |
|
|
298,528 |
|
Amortizable intangibles, net |
48,685 |
|
|
14,803 |
|
Bank owned life insurance |
263,034 |
|
|
182,854 |
|
Other assets |
250,210 |
|
|
102,871 |
|
Assets of discontinued operations |
1,479 |
|
|
44,658 |
|
Total assets |
$ |
13,765,599 |
|
|
$ |
9,315,179 |
|
LIABILITIES |
|
|
|
Noninterest-bearing demand deposits |
$ |
2,094,607 |
|
|
$ |
1,502,208 |
|
Interest-bearing deposits |
7,876,353 |
|
|
5,489,510 |
|
Total deposits |
9,970,960 |
|
|
6,991,718 |
|
Securities sold under agreements to
repurchase |
39,197 |
|
|
49,152 |
|
Other short-term borrowings |
1,048,600 |
|
|
745,000 |
|
Long-term borrowings |
668,481 |
|
|
425,262 |
|
Other liabilities |
112,093 |
|
|
54,008 |
|
Liabilities of discontinued operations |
1,687 |
|
|
3,710 |
|
Total liabilities |
11,841,018 |
|
|
8,268,850 |
|
Commitments and contingencies |
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
Common stock,
$1.33 par value, shares authorized 100,000,000; issued and
outstanding, 65,977,149 shares, and 43,743,318 shares,
respectively. |
87,250 |
|
|
57,744 |
|
Additional paid-in capital |
1,380,259 |
|
|
610,001 |
|
Retained earnings |
467,345 |
|
|
379,468 |
|
Accumulated other comprehensive income (loss) |
(10,273 |
) |
|
(884 |
) |
Total stockholders' equity |
1,924,581 |
|
|
1,046,329 |
|
Total liabilities and stockholders' equity |
$ |
13,765,599 |
|
|
$ |
9,315,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars
in thousands, except share data) |
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Interest and
dividend income: |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Interest and fees on
loans |
$ |
121,846 |
|
|
$ |
115,817 |
|
|
$ |
78,198 |
|
|
$ |
469,856 |
|
|
$ |
293,996 |
|
Interest
on deposits in other banks |
309 |
|
|
492 |
|
|
172 |
|
|
2,125 |
|
|
539 |
|
Interest
and dividends on securities: |
|
|
|
|
|
|
|
|
|
Taxable |
11,623 |
|
|
10,145 |
|
|
5,225 |
|
|
36,851 |
|
|
20,305 |
|
Nontaxable |
6,858 |
|
|
4,909 |
|
|
3,584 |
|
|
19,956 |
|
|
14,204 |
|
Total interest and dividend income |
140,636 |
|
|
131,363 |
|
|
87,179 |
|
|
528,788 |
|
|
329,044 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
19,149 |
|
|
15,928 |
|
|
7,696 |
|
|
59,336 |
|
|
26,106 |
|
Interest
on short-term borrowings |
5,663 |
|
|
3,379 |
|
|
1,813 |
|
|
18,458 |
|
|
6,035 |
|
Interest
on long-term borrowings |
6,735 |
|
|
6,093 |
|
|
4,580 |
|
|
24,303 |
|
|
17,896 |
|
Total interest expense |
31,547 |
|
|
25,400 |
|
|
14,089 |
|
|
102,097 |
|
|
50,037 |
|
Net interest income |
109,089 |
|
|
105,963 |
|
|
73,090 |
|
|
426,691 |
|
|
279,007 |
|
Provision for
credit losses |
4,725 |
|
|
3,340 |
|
|
3,458 |
|
|
13,736 |
|
|
10,802 |
|
Net interest income after provision for credit
losses |
104,364 |
|
|
102,623 |
|
|
69,632 |
|
|
412,955 |
|
|
268,205 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
6,873 |
|
|
6,483 |
|
|
4,925 |
|
|
25,439 |
|
|
18,850 |
|
Other
service charges and fees |
1,467 |
|
|
1,625 |
|
|
1,202 |
|
|
5,603 |
|
|
4,593 |
|
Interchange fees, net |
4,640 |
|
|
4,882 |
|
|
3,769 |
|
|
18,803 |
|
|
14,974 |
|
Fiduciary
and asset management fees |
4,643 |
|
|
4,411 |
|
|
2,933 |
|
|
16,150 |
|
|
11,245 |
|
Gains
(losses) on securities transactions, net |
161 |
|
|
97 |
|
|
18 |
|
|
383 |
|
|
800 |
|
Bank
owned life insurance income |
2,072 |
|
|
1,732 |
|
|
1,306 |
|
|
7,198 |
|
|
6,144 |
|
Loan-related interest rate swap fees |
1,376 |
|
|
562 |
|
|
424 |
|
|
3,554 |
|
|
3,051 |
|
Gain on
Shore Premier Finance sale |
— |
|
|
(933 |
) |
|
— |
|
|
19,966 |
|
|
— |
|
Other
operating income |
2,255 |
|
|
1,028 |
|
|
547 |
|
|
7,145 |
|
|
2,772 |
|
Total noninterest income |
23,487 |
|
|
19,887 |
|
|
15,124 |
|
|
104,241 |
|
|
62,429 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
Salaries
and benefits |
38,581 |
|
|
39,279 |
|
|
28,228 |
|
|
159,378 |
|
|
115,968 |
|
Occupancy
expenses |
6,590 |
|
|
6,551 |
|
|
4,775 |
|
|
25,368 |
|
|
18,558 |
|
Furniture
and equipment expenses |
2,967 |
|
|
2,983 |
|
|
2,529 |
|
|
11,991 |
|
|
10,047 |
|
Printing,
postage, and supplies |
1,125 |
|
|
1,183 |
|
|
1,237 |
|
|
4,650 |
|
|
4,901 |
|
Communications expense |
923 |
|
|
872 |
|
|
738 |
|
|
3,898 |
|
|
3,304 |
|
Technology and data processing |
4,675 |
|
|
4,841 |
|
|
4,339 |
|
|
18,397 |
|
|
16,132 |
|
Professional services |
2,183 |
|
|
2,875 |
|
|
2,155 |
|
|
10,283 |
|
|
7,767 |
|
Marketing
and advertising expense |
2,211 |
|
|
3,109 |
|
|
1,863 |
|
|
10,043 |
|
|
7,795 |
|
FDIC
assessment premiums and other |
1,214 |
|
|
1,363 |
|
|
1,255 |
|
|
6,644 |
|
|
4,048 |
|
Other
taxes |
2,882 |
|
|
2,878 |
|
|
2,022 |
|
|
11,542 |
|
|
8,087 |
|
Loan-related expenses |
2,109 |
|
|
1,939 |
|
|
1,249 |
|
|
7,206 |
|
|
4,733 |
|
OREO and
credit-related expenses |
1,026 |
|
|
452 |
|
|
1,741 |
|
|
4,131 |
|
|
3,764 |
|
Amortization of intangible assets |
2,954 |
|
|
3,490 |
|
|
1,427 |
|
|
12,839 |
|
|
6,088 |
|
Training
and other personnel costs |
1,104 |
|
|
1,024 |
|
|
1,014 |
|
|
4,259 |
|
|
3,843 |
|
Merger-related costs |
2,314 |
|
|
1,429 |
|
|
1,917 |
|
|
39,728 |
|
|
5,393 |
|
Other
expenses |
1,675 |
|
|
2,081 |
|
|
1,307 |
|
|
7,410 |
|
|
5,240 |
|
Total noninterest expenses |
74,533 |
|
|
76,349 |
|
|
57,796 |
|
|
337,767 |
|
|
225,668 |
|
Income from continuing
operations before income taxes |
53,318 |
|
|
46,161 |
|
|
26,960 |
|
|
179,429 |
|
|
104,966 |
|
Income tax expense |
9,041 |
|
|
7,399 |
|
|
11,867 |
|
|
30,016 |
|
|
32,790 |
|
Income from continuing operations |
44,277 |
|
|
38,762 |
|
|
$ |
15,093 |
|
|
149,413 |
|
|
$ |
72,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME (continued) |
(Dollars
in thousands, except share data) |
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Discontinued
operations: |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Income (loss) from
operations of discontinued mortgage segment |
$ |
(509 |
) |
|
$ |
(761 |
) |
|
$ |
320 |
|
|
$ |
(4,280 |
) |
|
$ |
1,344 |
|
Income
tax expense (benefit) |
(317 |
) |
|
(196 |
) |
|
228 |
|
|
(1,115 |
) |
|
597 |
|
Income (loss) on discontinued operations |
(192 |
) |
|
(565 |
) |
|
92 |
|
|
(3,165 |
) |
|
747 |
|
Net income |
$ |
44,085 |
|
|
$ |
38,197 |
|
|
$ |
15,185 |
|
|
$ |
146,248 |
|
|
$ |
72,923 |
|
Basic earnings per
common share |
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
0.35 |
|
|
$ |
2.22 |
|
|
$ |
1.67 |
|
Diluted earnings per
common share |
$ |
0.67 |
|
|
$ |
0.58 |
|
|
$ |
0.35 |
|
|
$ |
2.22 |
|
|
$ |
1.67 |
|
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES
(TAXABLE EQUIVALENT BASIS) |
|
For the Quarter Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
AverageBalance |
|
InterestIncome /Expense (1) |
|
Yield /Rate (1)(2) |
|
AverageBalance |
|
InterestIncome /Expense (1) |
|
Yield /Rate (1)(2) |
Assets: |
(unaudited) |
|
(unaudited) |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,477,670 |
|
|
$ |
11,623 |
|
|
3.12 |
% |
|
$ |
1,333,960 |
|
|
$ |
10,145 |
|
|
3.02 |
% |
Tax-exempt |
862,381 |
|
|
8,681 |
|
|
3.99 |
% |
|
632,050 |
|
|
6,214 |
|
|
3.90 |
% |
Total
securities |
2,340,051 |
|
|
20,304 |
|
|
3.44 |
% |
|
1,966,010 |
|
|
16,359 |
|
|
3.30 |
% |
Loans, net (3) (4) |
9,557,160 |
|
|
122,330 |
|
|
5.08 |
% |
|
9,297,213 |
|
|
116,266 |
|
|
4.96 |
% |
Other earning
assets |
64,023 |
|
|
336 |
|
|
2.09 |
% |
|
120,097 |
|
|
752 |
|
|
2.49 |
% |
Total earning assets |
11,961,234 |
|
|
$ |
142,970 |
|
|
4.74 |
% |
|
11,383,320 |
|
|
$ |
133,377 |
|
|
4.65 |
% |
Allowance for loan
losses |
(41,556 |
) |
|
|
|
|
|
(41,799 |
) |
|
|
|
|
Total
non-earning assets |
1,618,482 |
|
|
|
|
|
|
1,605,831 |
|
|
|
|
|
Total
assets |
$ |
13,538,160 |
|
|
|
|
|
|
$ |
12,947,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
$ |
5,080,120 |
|
|
$ |
11,086 |
|
|
0.87 |
% |
|
$ |
4,915,070 |
|
|
$ |
8,789 |
|
|
0.71 |
% |
Regular
savings |
626,252 |
|
|
211 |
|
|
0.13 |
% |
|
640,954 |
|
|
209 |
|
|
0.13 |
% |
Time
deposits (5) |
2,083,270 |
|
|
7,851 |
|
|
1.50 |
% |
|
2,079,686 |
|
|
6,930 |
|
|
1.32 |
% |
Total interest-bearing deposits |
7,789,642 |
|
|
19,148 |
|
|
0.98 |
% |
|
7,635,710 |
|
|
15,928 |
|
|
0.83 |
% |
Other borrowings
(6) |
1,575,173 |
|
|
12,398 |
|
|
3.12 |
% |
|
1,155,093 |
|
|
9,472 |
|
|
3.25 |
% |
Total interest-bearing liabilities |
9,364,815 |
|
|
31,546 |
|
|
1.34 |
% |
|
8,790,803 |
|
|
25,400 |
|
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
2,162,341 |
|
|
|
|
|
|
2,167,765 |
|
|
|
|
|
Other
liabilities |
111,755 |
|
|
|
|
|
|
108,202 |
|
|
|
|
|
Total liabilities |
11,638,911 |
|
|
|
|
|
|
11,066,770 |
|
|
|
|
|
Stockholders'
equity |
1,899,249 |
|
|
|
|
|
|
1,880,582 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
13,538,160 |
|
|
|
|
|
|
$ |
12,947,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
$ |
111,424 |
|
|
|
|
|
|
$ |
107,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
3.40 |
% |
|
|
|
|
|
3.50 |
% |
Cost of
funds |
|
|
|
|
1.04 |
% |
|
|
|
|
|
0.89 |
% |
Net interest
margin |
|
|
|
|
3.70 |
% |
|
|
|
|
|
3.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income
and yields are reported on a taxable equivalent basis using the
statutory federal corporate tax rate of 21% for both the three
months ended December 31, 2018 and December 31, 2017. |
(2) Rates
and yields are annualized and calculated from actual, not rounded
amounts in thousands, which appear above. |
(3)
Nonaccrual loans are included in average loans outstanding. |
(4)
Interest income on loans includes $3.5 million for both the three
months ended December 31, 2018 and September 30, 2018,
respectively, in accretion of the fair market value adjustments
related to acquisitions. |
(5)
Interest expense on time deposits includes $445,000 and $592,000
for the three months ended December 31, 2018 and September 30,
2018, respectively, in accretion of the fair market value
adjustments related to acquisitions. |
(6)
Interest expense on borrowings includes $161,000 and $143,000 for
the three months ended December 31, 2018 and September 30, 2018,
respectively, in amortization of the fair market value adjustments
related to acquisitions. |
|
Contact:Robert M. Gorman - (804)
523-7828Executive Vice President / Chief Financial Officer
Union Bankshares Corp (NASDAQ:UBSH)
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