- Loans increased 6.0% and deposits increased 2.4% in the second quarter
- Continued improvements in credit quality; Nonperforming assets to total assets ratio decreased three basis points to 0.27%
- Executed a cost reduction initiative during the second quarter to improve efficiency
IRVINE, Calif.–(BUSINESS WIRE)–$OPB #Earnings–Opus Bank (“Opus”) (NASDAQ: “OPB”) announced today net income of $8.7 million, or $0.23 per diluted share, for the second quarter of 2019, compared to net income of $10.9 million, or $0.28 per diluted share, for the first quarter of 2019. Net income during the second quarter of 2019 included $4.9 million of expenses related to our cost reduction initiative and certain other strategic actions, of which $4.3 million was severance expense, as well as an increase in our effective tax rate of approximately seven percentage points that was driven by the cost reduction initiative. Together, these items impacted earnings by $0.12 per diluted share.
Additionally, Opus announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.11 per common share payable on August 22, 2019 to common stockholders of record as of August 8, 2019, and a common-equivalent payment to its Series A Preferred stockholders.
|
Earnings Summary |
|
|
|
|||||||||||||||
|
(unaudited) |
|
|
|
|||||||||||||||
|
|
For the three months ended |
|||||||||||||||||
|
($ in thousands, except per share data) |
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
|||||||||||||||
|
Net income |
$ |
8,686 |
|
$ |
10,861 |
|
$ |
15,464 |
|
|||||||||
|
Earnings per diluted share |
|
0.23 |
|
|
0.28 |
|
|
0.40 |
|
|||||||||
|
Return on average assets |
|
0.45 |
% |
|
0.60 |
% |
|
0.86 |
% |
|||||||||
|
Return on average stockholders’ equity |
|
3.29 |
% |
|
4.19 |
% |
|
6.03 |
% |
|||||||||
|
Return on average tangible common equity1 |
|
5.28 |
% |
|
6.76 |
% |
|
9.93 |
% |
|||||||||
|
Efficiency ratio |
|
71.32 |
% |
|
70.61 |
% |
|
66.29 |
% |
|||||||||
|
|
|
|
|
|||||||||||||||
|
Adjusted Earnings1 |
|
|
|
|||||||||||||||
|
Adjusted net income |
$ |
13,308 |
|
$ |
12,305 |
|
$ |
15,367 |
|
|||||||||
|
Adjusted earnings per diluted share |
|
0.35 |
|
|
0.32 |
|
|
0.40 |
|
|||||||||
|
Adjusted return on average assets |
|
0.68 |
% |
|
0.68 |
% |
|
0.85 |
% |
|||||||||
|
Adjusted return on average stockholders’ equity |
|
5.04 |
% |
|
4.75 |
% |
|
6.00 |
% |
|||||||||
|
Adjusted return on average tangible common equity |
|
8.08 |
% |
|
7.66 |
% |
|
9.87 |
% |
|||||||||
|
Adjusted efficiency ratio |
|
63.55 |
% |
|
67.93 |
% |
|
65.95 |
% |
|||||||||
|
|
|
|
|
|||||||||||||||
|
[1] See reconciliation of non-GAAP financial measures to corresponding GAAP measures on pages 16-17. |
||||||||||||||||||
Paul W. Taylor, President and Chief Executive Officer of Opus Bank, stated, “Our earnings performance in the second quarter included earnings per diluted share of $0.23, or adjusted EPS of $0.35, driven by strong loan growth from our multifamily lending division, solid deposit growth, and positive contributions from PENSCO and our Escrow and Exchange divisions. Additionally, credit quality continued to improve, with Enterprise Value loans decreasing 39% from the prior quarter to $64.5 million as of June 30th and nonperforming assets down to just 0.27% of total assets.”
Mr. Taylor continued, “As demonstrated by our lower net interest margin this period, we continue to navigate through a challenging interest rate environment, with a flattening yield curve that is plaguing the banking industry. Yet, we have recognized opportunities to increase interest income and offset the impact of rising funding costs, while also focusing on managing our noninterest expenses. During the second quarter, we restructured our expense base, which resulted in charges for severance and higher income tax expenses during the quarter. We expect these actions to improve our efficiency and result in greater profitability in future quarters.”
Loans
Loans increased $327.5 million, or 6%, to $5.8 billion as of June 30, 2019, from $5.5 billion as of March 31, 2019, and increased $716.6 million, or 14%, from $5.1 billion as of June 30, 2018. The increase in loans during the second quarter of 2019 was driven by new loan fundings of $703.6 million, partially offset by loan payoffs of $238.7 million, which included planned exits of $45.9 million. Additionally, during the second quarter, we transferred $79.1 million of multifamily loans to held-for-sale, which are anticipated to be sold during the third quarter of 2019.
|
Loan Balance Roll Forward |
|
|
|
|
|||||||||||||||||||||
|
(unaudited) |
|
Three Months Ended |
|||||||||||||||||||||||
|
($ in millions) |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Beginning loan balance |
|
$ |
5,461.5 |
|
|
$ |
5,165.2 |
|
|
$ |
5,159.9 |
|
|
$ |
5,072.4 |
|
|
$ |
5,229.0 |
|
|||||
|
New loan fundings |
|
|
703.6 |
|
|
|
538.0 |
|
|
|
412.3 |
|
|
|
435.7 |
|
|
|
295.6 |
|
|||||
|
Loan payoffs |
|
|
(192.8 |
) |
|
|
(173.7 |
) |
|
|
(265.3 |
) |
|
|
(197.4 |
) |
|
|
(299.5 |
) |
|||||
|
Transfers to HFS |
|
|
(79.1 |
) |
|
— |
|
— |
|
— |
|
— |
|||||||||||||
|
Planned exits |
|
|
(45.9 |
) |
|
|
(22.5 |
) |
|
|
(59.2 |
) |
|
|
(60.6 |
) |
|
|
(58.5 |
) |
|||||
|
Other1 |
|
|
(58.3 |
) |
|
|
(45.5 |
) |
|
|
(82.5 |
) |
|
|
(90.2 |
) |
|
|
(94.2 |
) |
|||||
|
Ending loan balance |
|
$ |
5,789.0 |
|
|
$ |
5,461.5 |
|
|
$ |
5,165.2 |
|
|
$ |
5,159.9 |
|
|
$ |
5,072.4 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
[1] Includes normal amortization, paydowns, charge-offs, and loan sales that were not planned exits |
|||||||||||||||||||||||||
New loan fundings in the second quarter of 2019 totaled $703.6 million, an increase of $165.6 million, or 31%, from the first quarter of 2019 and an increase of $408.0 million, or 138%, from the second quarter of 2018. The growth in new loan fundings compared to the prior quarter and year-ago period was primarily driven by multifamily loan originations, as favorable market conditions and strong demand from borrowers continued in the second quarter. Quarterly loan payoffs in the second quarter were $192.8 million, excluding planned loan exits, compared to $173.7 million in the first quarter of 2019 and $299.5 million in the second quarter of 2018.
Loan commitments originated during the second quarter of 2019 totaled $763.3 million, compared to $550.3 million during the first quarter of 2019 and $306.5 million during the second quarter of 2018. Unfunded commitments on loans totaled $405.5 million as of June 30, 2019.
Investment Securities
Investment securities totaled $1.1 billion as of June 30, 2019, a decrease of $42.8 million, or 4%, compared to March 31, 2019, and an increase of $27.2 million, or 3%, compared to June 30, 2018. The decrease in investment securities compared to the first quarter was primarily driven by accelerated amortization from pay downs on the underlying loans.
Deposits and Borrowings
Deposits increased $146.6 million, or 2%, to $6.2 billion as of June 30, 2019, from $6.1 billion as of March 31, 2019, and increased $289.2 million, or 5%, from $5.9 billion as of June 30, 2018. Deposit growth during the second quarter of 2019 was primarily driven by interest-bearing demand deposits generated by our Escrow and Exchange, Fiduciary, and Municipal Banking divisions, which increased $180.5 million, or 8%, compared to the prior quarter. Certificates of deposit increased $81.0 million, or 10%, from the prior quarter. Noninterest-bearing demand deposits decreased 6% from the prior quarter and measured 12% of total deposits as of June 30, 2019. The average balance of deposits in the second quarter of 2019 increased $224.9 million compared to the prior quarter, as deposit inflows occurred earlier in the period.
Our loan to deposit ratio was 93% as of June 30, 2019, compared to 90% as of March 31, 2019 and 85% as of June 30, 2018.
Federal Home Loan Bank (FHLB) advances increased to $350.0 million as of June 30, 2019, compared to $330.0 million as of March 31, 2019, and no outstanding balance as of June 30, 2018. The average balance of FHLB advances during the second quarter of 2019 was $351.9 million, compared to $122.0 million in the first quarter of 2019 and $69.1 million in the second quarter of 2018.
Net Interest Income
Net interest income decreased 1% to $50.5 million for the second quarter of 2019, compared to $50.8 million for the first quarter of 2019, and increased 2.0% compared to $49.5 million for the second quarter of 2018. Interest income from loans increased 7% to $61.2 million for the second quarter of 2019, compared to $57.0 million for the first quarter of 2019, driven primarily by a 9% increase in the average balance of loans, while interest expense increased 27% to $20.4 million for the second quarter of 2019, compared to $16.1 million for the first quarter of 2019. The increase in interest expense during the second quarter of 2019 was driven by increased balances and a higher rate of interest-bearing deposits, a change in the mix of deposits to higher-cost deposit categories, and higher average balances of FHLB advances.
Net Interest Margin
The current interest rate environment and flattening yield curve continue to negatively impact our net interest margin (NIM). Taxable equivalent NIM decreased 27 basis points to 2.88% in the second quarter of 2019 from 3.15% in the first quarter of 2019, and decreased 19 basis points from 3.07% in the second quarter of 2018. The linked-quarter change was primarily driven by an 18 basis point increase in the cost of funds from the prior quarter to 1.23% and a nine basis point decrease in the yield on interest earning assets to 4.04%. Our cost of deposits increased 14 basis points during the second quarter of 2019 to 1.06%, primarily due to higher rates paid on money market and time deposits, as competitive pricing pressure in our western markets remained elevated. Other factors that contributed to the decrease in NIM in the second quarter of 2019 included a six-basis-point decrease in the yield on investment securities and one additional day in the second quarter compared to the first quarter of 2019, which negatively impacted NIM by four basis points.
Noninterest Income
Noninterest income increased 8% to $12.0 million in the second quarter of 2019 from $11.1 million in the first quarter of 2019, and decreased 7% from $12.9 in the second quarter of 2018. The increase in noninterest income compared to the prior quarter was driven by growth in trust administrative fees from PENSCO, our alternative asset IRA custodian subsidiary, escrow and exchange fees, deposit service charges, and other income. Other income in the first quarter of 2019 included an impairment charge on a sublet property of $489,000 primarily related to the exiting of Opus Financial Partners, the company’s broker-dealer, as a line of business. Excluding this item, noninterest income increased 4% in the second quarter of 2019 compared to the prior quarter.
Noninterest Expense
Noninterest expense increased 2% to $46.3 million in the second quarter of 2019, compared to $45.4 million in the first quarter of 2019, and increased 7.4% compared to $43.1 million in the second quarter of 2018. On an adjusted basis after giving effect to expenses described in the paragraph below, noninterest expense decreased 6% in the second quarter of 2019, primarily due to lower compensation and benefits expense and a reduction in legal fees from the prior quarter. Our efficiency ratio for the second quarter of 2019 was 71.3%, or 63.5% on an adjusted basis, compared to 70.6% for the first quarter of 2019, or 67.9% on an adjusted basis.
During the second quarter of 2019 we executed a cost reduction initiative that included a reduction in workforce that generated severance expense of $4.3 million. Additionally, other strategic action related expenses totaled $583,000 during the second quarter, which together with severance expense increased total noninterest expense by $4.9 million. Noninterest expense during the first quarter of 2019 included a $1.4 million expense related to a legal settlement.
Income Tax Expense
We recorded an income tax expense of $4.2 million in the second quarter of 2019, compared to an income tax expense of $3.4 million in the first quarter of 2019 and an income tax expense of $4.1 in the second quarter of 2018. Our effective tax rate for the second quarter of 2019 was 32.7%, compared to 24.0% for the first quarter of 2019 and 20.8% for the second quarter of 2018. The increase in our effective tax rate during the second quarter of 2019 was primarily driven by certain severance payments associated with the cost reduction initiative, which resulted in annual compensation that exceeded the deductible threshold under Internal Revenue Code Section 162(m). These actions increased our effective tax rate by approximately seven percentage points.
Asset Quality
Total nonperforming assets decreased 9% to $21.2 million as of June 30, 2019, compared to $23.3 million as of March 31, 2019, and decreased 47% compared to $40.0 million as of June 30, 2018. Our ratio of nonperforming assets to total assets measured 0.27% as of June 30, 2019, compared to 0.30% and 0.56% as of March 31, 2019 and June 30, 2018, respectively. Total criticized loans decreased $14.6 million, or 10%, to $137.9 million as of June 30, 2019, compared to $152.5 million as of March 31, 2019. Classified loans decreased $16.1 million in the second quarter of 2019, while special mention loans increased $1.5 million. Total Enterprise Value loans decreased $40.5 million, or 39%, during the second quarter of 2019 and totaled $64.5 million as of June 30, 2019.
Our allowance for loan losses was $57.7 million, or 1.00% of loans, as of June 30, 2019, compared to $58.5 million, or 1.07% of loans, as of March 31, 2019, and $59.2 million, or 1.17% of loans, as of June 30, 2018. Net charge-offs during the second quarter of 2019 were $4.0 million, or 0.28% of average loans annualized, compared to net recoveries of $1.6 million, or (0.12)% of average loans annualized, for the first quarter of 2019, and $8.4 million, or 0.66% of average loans annualized, for the second quarter of 2018. The ratio of the allowance for loan losses to total nonaccrual loans was 273% as of June 30, 2019, compared to 251% as of March 31, 2019 and 148% as of June 30, 2018.
We recorded a provision expense for loan losses of $3.3 million in the second quarter of 2019, compared to a provision expense of $2.2 million in the first quarter of 2019 and a negative provision of $213,000 in the second quarter of 2018. The provision expense during the second quarter of 2019 was primarily driven by net charge-offs, net loan growth, and risk rating migration, partially offset by planned loan exits.
Capital
As of June 30, 2019, Opus exceeded all regulatory capital requirements under Basel III and was considered to be a “well-capitalized” financial institution, as summarized in the table below:
|
Capital Ratios |
|
As of |
|
Well-Capitalized |
||||||||||||
|
(unaudited) |
|
June 30, |
|
March 31, |
|
June 30, |
|
|||||||||
|
Tier 1 leverage ratio |
|
9.30 |
% |
|
9.86 |
% |
|
9.85 |
% |
|
5.00 |
% |
||||
|
Common Equity Tier 1 ratio |
|
11.07 |
|
|
11.10 |
|
|
11.80 |
|
|
6.50 |
|
||||
|
Tier 1 risk-based capital ratio |
|
11.56 |
|
|
11.59 |
|
|
12.33 |
|
|
8.00 |
|
||||
|
Total risk-based capital ratio |
|
14.77 |
|
|
14.85 |
|
|
15.86 |
|
|
10.00 |
|
||||
|
Tangible equity to tangible assets ratio |
|
9.26 |
|
|
9.27 |
|
|
9.67 |
|
|
NA |
|||||
|
Tangible common equity to tangible assets ratio |
|
8.87 |
|
|
8.88 |
|
|
9.24 |
|
|
NA |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
[1] Regulatory capital ratios are preliminary until filing of our June 30, 2019 FDIC call report. |
||||||||||||||||
Stockholders’ equity totaled over $1.1 billion as of June 30, 2019 and increased $13.2 million and $28.3 million compared to March 31, 2019 and June 30, 2018, respectively. Our tangible book value per common share increased $0.36 to $18.32 as of June 30, 2019, compared to $17.96 as of March 31, 2019 and increased $0.84 compared to $17.48 as of June 30, 2018.
Conference Call and Webcast Details
Date: Monday, July 29, 2019
Time: 8:00 a.m. PT (11:00 a.m. ET)
Phone Number: (833) 628-4594
Conference ID: 6638938
Webcast URL: http://investor.opusbank.com/event
Analysts, investors, and the general public may listen to our discussion of Opus’ second quarter performance and participate in the question/answer session by using the phone number listed above or through a live webcast of the conference available through a link on the investor relations page of Opus’ website at: http://investor.opusbank.com/event. It is recommended that participants dial into the conference call or log into the webcast approximately 10 minutes prior to the call.
Replay Information: For those who are not able to listen to the call, an archived recording will be available beginning approximately two hours following the completion of the call. To listen to the call replay, dial (855) 859-2056, or for international callers dial (404) 537-3406. The access code for either replay number is 6638938. The call replay will be available through August 29, 2019.
About Opus Bank
Opus Bank is an FDIC insured California-chartered commercial bank with $7.9 billion of total assets, $5.9 billion of total loans, and $6.2 billion in total deposits as of June 30, 2019. Opus Bank provides commercial and retail banking products and solutions to its clients in western markets from its headquarters in Irvine, California and through 47 banking offices, including 28 in California, 16 in the Seattle/Puget Sound region in Washington, two in the Phoenix metropolitan area of Arizona and one in Portland, Oregon. Opus Bank offers a suite of treasury and cash management and depository solutions, and a wide range of loan products, including commercial, healthcare, media and entertainment, corporate finance, multifamily residential, commercial real estate and structured finance, and is an SBA preferred lender. Opus Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Escrow and Exchange divisions. Additionally, Opus Bank’s wholly-owned subsidiary, PENSCO Trust Company, has approximately $14 billion of custodial IRA assets and approximately 47,000 client accounts, which are comprised of self-directed investors, financial institutions, capital raisers and financial advisors. Opus Bank is an Equal Housing Lender. For additional information about Opus Bank, please visit our website: www.opusbank.com.
Forward Looking Statements
This release and the aforementioned conference call and webcast includes forward-looking statements related to Opus’ plans, beliefs and goals. Forward-looking statements are neither historical facts nor assurances of future performance. Opus generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release and the aforementioned conference call and webcast are based on the historical performance of Opus and its subsidiaries or on its current plans, beliefs, estimates, expectations and goals, including without limitation: our expectations regarding improvements to our efficiency and greater profitability in future quarters; and our plans to sell $79.1 million of multifamily loans during the third quarter of 2019. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity that could cause actual results to differ materially from those indicated by the forward-looking statements, including, without limitation: market and economic conditions, changes in interest rates, our liquidity position, the management of our growth, the risks associated with our loan portfolio, risks that our expected efficiencies and savings from our expense reduction initiatives will be less than anticipated, local economic conditions affecting retail and commercial real estate, our geographic concentration in the western region of the United States, competition within the industry, dependence on key personnel, government legislation and regulation, the risks associated with any future acquisitions, the effect of natural disasters, risks related to our technology and information systems, and the management of our operating expenses, including the effectiveness of certain strategic cost reduction initiatives. For a discussion of these and other risks and uncertainties, see Opus’ filings with the Federal Deposit Insurance Corporation, including, but not limited to, the risk factors in Opus’ Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation on February 28, 2019. If one or more of these or other risks or uncertainties materialize, or if Opus’ underlying assumptions prove to be incorrect, Opus’ actual results may vary materially from those indicated in these statements. These filings are available on the Investor Relations page of Opus’ website at: investor.opusbank.com.
Opus undertakes no obligation to revise or publicly release any revision to these forward-looking statements, whether as a result of new information, future developments or otherwise.
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
|||||||||||||||||
|
(unaudited) |
|
For the three months ended |
|
For the six months ended |
|||||||||||||||||||||
|
($ in thousands, except per share amounts) |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||||||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Loans |
|
$ |
|
61,157 |
|
|
$ |
|
57,007 |
|
|
$ |
|
53,807 |
|
|
$ |
|
118,164 |
|
|
$ |
|
108,444 |
|
|
Investment securities |
|
|
8,359 |
|
|
|
8,577 |
|
|
|
5,048 |
|
|
|
16,936 |
|
|
|
10,142 |
|
|||||
|
Due from banks |
|
|
1,447 |
|
|
|
1,324 |
|
|
|
1,326 |
|
|
|
2,771 |
|
|
|
2,277 |
|
|||||
|
Total interest income |
|
|
70,963 |
|
|
|
66,908 |
|
|
|
60,181 |
|
|
|
137,871 |
|
|
|
120,863 |
|
|||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Deposits |
|
|
16,359 |
|
|
|
13,425 |
|
|
|
8,403 |
|
|
|
29,785 |
|
|
|
15,423 |
|
|||||
|
Federal Home Loan Bank advances |
|
|
2,165 |
|
|
|
756 |
|
|
|
332 |
|
|
|
2,921 |
|
|
|
379 |
|
|||||
|
Subordinated debt |
|
|
1,923 |
|
|
|
1,923 |
|
|
|
1,923 |
|
|
|
3,845 |
|
|
|
3,845 |
|
|||||
|
Total interest expense |
|
|
20,447 |
|
|
|
16,104 |
|
|
|
10,658 |
|
|
|
36,551 |
|
|
|
19,647 |
|
|||||
|
Net interest income |
|
|
50,516 |
|
|
|
50,804 |
|
|
|
49,523 |
|
|
|
101,320 |
|
|
|
101,216 |
|
|||||
|
Provision (negative provision) for loan losses |
|
|
3,281 |
|
|
|
2,197 |
|
|
|
(213 |
) |
|
|
5,478 |
|
|
|
3,700 |
|
|||||
|
Net interest income after provision (negative provision) for loan losses |
|
|
47,235 |
|
|
|
48,607 |
|
|
|
49,736 |
|
|
|
95,842 |
|
|
|
97,516 |
|
|||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Fees and service charges on deposit accounts |
|
|
1,505 |
|
|
|
1,440 |
|
|
|
1,783 |
|
|
|
2,945 |
|
|
|
3,505 |
|
|||||
|
Escrow and exchange fees |
|
|
1,506 |
|
|
|
1,353 |
|
|
|
1,498 |
|
|
|
2,859 |
|
|
|
2,858 |
|
|||||
|
Trust administrative fees |
|
|
6,829 |
|
|
|
6,685 |
|
|
|
6,841 |
|
|
|
13,514 |
|
|
|
13,819 |
|
|||||
|
Loss on sale of loans |
|
|
(56 |
) |
|
|
(111 |
) |
|
|
(100 |
) |
|
|
(166 |
) |
|
|
(169 |
) |
|||||
|
Gain from OREO and other repossessed assets |
|
— |
|
— |
|
|
84 |
|
|
— |
|
|
203 |
|
|||||||||||
|
Gain on sale of investment securities |
|
|
6 |
|
|
|
113 |
|
|
— |
|
|
119 |
|
|
|
182 |
|
|||||||
|
Bank-owned life insurance, net |
|
|
994 |
|
|
|
980 |
|
|
|
1,045 |
|
|
|
1,974 |
|
|
|
2,097 |
|
|||||
|
Other income |
|
|
1,211 |
|
|
|
640 |
|
|
|
1,776 |
|
|
|
1,850 |
|
|
|
3,741 |
|
|||||
|
Total noninterest income |
|
|
11,995 |
|
|
|
11,100 |
|
|
|
12,927 |
|
|
|
23,095 |
|
|
|
26,236 |
|
|||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Compensation and benefits |
|
|
29,095 |
|
|
|
26,875 |
|
|
|
25,472 |
|
|
|
55,971 |
|
|
|
52,280 |
|
|||||
|
Professional services |
|
|
1,099 |
|
|
|
2,216 |
|
|
|
2,619 |
|
|
|
3,315 |
|
|
|
4,336 |
|
|||||
|
Occupancy expense |
|
|
3,581 |
|
|
|
3,830 |
|
|
|
3,751 |
|
|
|
7,411 |
|
|
|
7,757 |
|
|||||
|
Depreciation and amortization |
|
|
1,704 |
|
|
|
1,833 |
|
|
|
1,763 |
|
|
|
3,536 |
|
|
|
3,362 |
|
|||||
|
Deposit insurance and regulatory assessments |
|
|
519 |
|
|
|
773 |
|
|
|
959 |
|
|
|
1,292 |
|
|
|
2,089 |
|
|||||
|
Insurance expense |
|
|
335 |
|
|
|
344 |
|
|
|
335 |
|
|
|
679 |
|
|
|
673 |
|
|||||
|
Data processing |
|
|
1,058 |
|
|
|
565 |
|
|
|
318 |
|
|
|
1,622 |
|
|
|
758 |
|
|||||
|
Software licenses and maintenance |
|
|
1,217 |
|
|
|
1,301 |
|
|
|
1,126 |
|
|
|
2,518 |
|
|
|
2,275 |
|
|||||
|
Office services |
|
|
1,679 |
|
|
|
1,639 |
|
|
|
1,847 |
|
|
|
3,318 |
|
|
|
3,726 |
|
|||||
|
Amortization of other intangible assets |
|
|
1,415 |
|
|
|
1,415 |
|
|
|
1,479 |
|
|
|
2,830 |
|
|
|
2,959 |
|
|||||
|
Advertising and marketing |
|
|
833 |
|
|
|
723 |
|
|
|
843 |
|
|
|
1,557 |
|
|
|
1,800 |
|
|||||
|
Other expenses |
|
|
3,784 |
|
|
|
3,896 |
|
|
|
2,629 |
|
|
|
7,680 |
|
|
|
5,205 |
|
|||||
|
Total noninterest expense |
|
|
46,319 |
|
|
|
45,410 |
|
|
|
43,141 |
|
|
|
91,729 |
|
|
|
87,220 |
|
|||||
|
Income before income tax expense |
|
|
12,911 |
|
|
|
14,297 |
|
|
|
19,522 |
|
|
|
27,208 |
|
|
|
36,532 |
|
|||||
|
Income tax expense |
|
|
4,225 |
|
|
|
3,436 |
|
|
|
4,058 |
|
|
|
7,661 |
|
|
|
8,165 |
|
|||||
|
Net income |
|
$ |
|
8,686 |
|
|
$ |
|
10,861 |
|
|
$ |
|
15,464 |
|
|
$ |
|
19,547 |
|
|
$ |
|
28,367 |
|
|
Basic earnings per common share |
|
$ |
|
0.23 |
|
|
$ |
|
0.29 |
|
|
$ |
|
0.41 |
|
|
$ |
|
0.52 |
|
|
$ |
|
0.76 |
|
|
Diluted earnings per common share |
|
|
0.23 |
|
|
|
0.28 |
|
|
|
0.40 |
|
|
|
0.51 |
|
|
|
0.74 |
|
|||||
|
Weighted average shares – basic |
|
|
36,254,474 |
|
|
|
36,187,431 |
|
|
|
36,027,569 |
|
|
|
36,221,048 |
|
|
|
35,997,839 |
|
|||||
|
Weighted average shares – diluted |
|
|
38,238,324 |
|
|
|
38,133,705 |
|
|
|
38,316,721 |
|
|
|
38,192,357 |
|
|
|
38,317,160 |
|
|||||
Contacts
Kevin L. Thompson
EVP, Chief Financial Officer
949-251-8196
Brett G. Villaume
SVP, Director of Investor Relations
949-224-8866
