Exhibit 99.1
January 25, 2017
MEDIA & INVESTOR CONTACT
Heather Worley, 214.932.6646
heather.worley@texascapitalbank.com
TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES OPERATING RESULTS FOR 2016
DALLAS - January 25, 2017 - Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the fourth quarter and full year of 2016.
“We are extremely pleased to finish 2016 with solid earnings and continued growth in loans, deposits and fee income. Our recent capital raise positions us to fully support potentially stronger growth by our clients in an environment that is expected to be more business-friendly," said Keith Cargill, CEO. "Continuing to attract and develop great talent and partnering with exceptional clients will drive future risk-appropriate assets and earnings growth, and solidify our outlook for a bright future as a leading organic-growth company."
| |
| • | Loans held for investment ("LHI"), excluding mortgage finance, increased 3% and total LHI decreased 1% on a linked quarter basis (increased 1% and decreased 1% on an average basis, respectively), growing 11% and 5%, respectively, from the fourth quarter of 2015. |
| |
| • | Total mortgage finance loans, including MCA loans, decreased 3% on a linked quarter basis (increasing 4% on an average basis) and increased 8% from the fourth quarter of 2015. |
| |
| • | Demand deposits decreased 9% and total deposits decreased 6% on a linked quarter basis (increasing 3% and 4% on an average basis, respectively), growing 25% and 13%, respectively, from the fourth quarter of 2015. |
| |
| • | Net income increased 13% on a linked quarter basis and increased 39% from the fourth quarter of 2015. |
| |
| • | EPS increased 10% on a linked quarter basis and increased 37% from the fourth quarter of 2015. |
FINANCIAL SUMMARY
(dollars and shares in thousands)
|
| | | | | | | | | | |
| | 2016 | | 2015 | | % Change |
| ANNUAL OPERATING RESULTS | | | | | |
| Net income | $ | 155,119 |
| | $ | 144,854 |
| | 7 | % |
| Net income available to common stockholders | $ | 145,369 |
| | $ | 135,104 |
| | 8 | % |
| Diluted EPS | $ | 3.11 |
| | $ | 2.91 |
| | 7 | % |
| Diluted shares | 46,766 |
| | 46,438 |
| | 1 | % |
| ROA | 0.74 | % | | 0.79 | % | | |
| ROE | 9.27 | % | | 9.65 | % | | |
| | | | | | |
| QUARTERLY OPERATING RESULTS | | | | | |
| Net income | $ | 48,386 |
| | $ | 34,753 |
| | 39 | % |
| Net income available to common stockholders | $ | 45,949 |
| | $ | 32,316 |
| | 42 | % |
| Diluted EPS | $ | 0.96 |
| | $ | 0.70 |
| | 37 | % |
| Diluted shares | 47,760 |
| | 46,480 |
| | 3 | % |
| ROA | 0.85 | % | | 0.72 | % | | |
| ROE | 10.82 | % | | 8.82 | % | | |
| | | | | | |
| BALANCE SHEET | | | | | |
| Loans held for sale (MCA) | $ | 968,929 |
| | $ | 86,075 |
| | N/M |
|
| LHI, mortgage finance | 4,497,338 |
| | 4,966,276 |
| | (9 | )% |
| LHI | 13,001,011 |
| | 11,745,674 |
| | 11 | % |
| Total LHI | 17,498,349 |
| | 16,711,950 |
| | 5 | % |
| Total assets | 21,697,134 |
| | 18,903,821 |
| | 15 | % |
| Demand deposits | 7,994,201 |
| | 6,386,911 |
| | 25 | % |
| Total deposits | 17,016,831 |
| | 15,084,619 |
| | 13 | % |
| Stockholders’ equity | 2,009,557 |
| | 1,623,533 |
| | 24 | % |
| Tangible book value per share | $ | 37.17 |
| | $ | 31.69 |
| | 17 | % |
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income of $155.1 million and net income available to common stockholders of $145.4 million for the year ended December 31, 2016, compared to net income of $144.9 million and net income available to common stockholders of $135.1 million for the year ended December 31, 2015. For the fourth quarter of 2016, net income was $48.4 million and net income available to common stockholders was $45.9 million, compared to net income of $34.8 million and net income available to common stockholders of $32.3 million for the same period in 2015. On a fully diluted basis, earnings per common share were $3.11 for the year ended December 31, 2016 compared to $2.91 for the same period in 2015. Diluted earnings per common share were $0.96 for the quarter ended December 31, 2016 compared to $0.70 for the same period of 2015. The increase reflects the $13.6 million year over year increase in net income offset by the $0.02 per share dilutive effect of the fourth quarter 2016 offering of 3.45 million common shares for net proceeds of $236.4 million.
Return on average common equity (“ROE”) was 9.27 percent and return on average assets ("ROA") was 0.74 percent for the year ended December 31, 2016, compared to 9.65 percent and 0.79 percent, respectively, for the year ended December 31, 2015. ROE was 10.82 percent and ROA was 0.85 percent for the fourth quarter of 2016, compared to 10.20 percent and 0.78 percent, respectively, for the third quarter of 2016 and 8.82 percent and 0.72 percent, respectively, for the fourth quarter of 2015. The linked quarter increase in quarter-to-date ROE for the fourth quarter of 2016 resulted from a 59% linked quarter decrease in the provision for credit losses for the fourth quarter of 2016. The year-over-year increase in quarter-to-date ROE for the fourth quarter of 2016 resulted from an increase in net interest income and a lower provision for credit losses for the fourth quarter of 2016. ROA remains low as a result of higher liquidity assets. The linked quarter and year-over-year increases in quarter-to-date ROA for the fourth quarter of 2016 resulted from increases in net revenue and the decreased provision for credit losses. Average liquidity assets for the fourth quarter of 2016 totaled $4.1 billion, including $3.8 billion in deposits at the Federal Reserve Bank of Dallas, which had an average yield of 54 basis points, compared to $3.1 billion for the fourth quarter of 2015, which had an average yield of 27 basis points.
Net interest income was $171.2 million for the fourth quarter of 2016, compared to $166.7 million for the third quarter of 2016 and $142.2 million for the fourth quarter of 2015. Net interest margin for the fourth quarter of 2016 was 3.11% percent, a 3 basis point decrease from the third quarter of 2016 and a 10 basis point increase from the fourth quarter of 2015. The linked quarter decrease in net interest margin is due primarily to the increase in liquidity assets as well as growth in interest bearing deposits with higher funding costs, partially offset by higher yields on loans. The year-over-year increase in net interest margin is due primarily to growth in total LHI with higher yields.
Average LHI, excluding mortgage finance loans, for the year ended December 31, 2016 were $12.4 billion, an increase of $1.3 billion, or 11 percent, from 2015. Average LHI, excluding mortgage finance loans, for the fourth quarter of 2016 were $12.7 billion, an increase of $110.3 million, or 1 percent, from the third quarter of 2016 and an increase of $1.0 billion, or 9 percent, from the fourth quarter of 2015. Average mortgage finance loans for the year ended December 31, 2016 were $4.3 billion, an increase of $300.4 million, or 8 percent, from 2015. Average mortgage finance loans for the fourth quarter of 2016 were $4.4 billion, a decrease of $287.3 million, or 6 percent, from the third quarter of 2016 and an increase of $702.5 million, or 19 percent, from the fourth quarter of 2015. Average mortgage participations sold for the year ended December 31, 2016 were $726.3 million, an increase of $316.9 million, or 77 percent, from the same period of 2015. Average mortgage participations sold for the fourth quarter of 2016 were $991.7 million, an increase of $108.7 million, or 12 percent, from the third quarter of 2016 and an increase of $598.9 million, or 152 percent, from the fourth quarter of 2015. Average loans held for sale ("LHS") generated from our Mortgage Correspondent Aggregation ("MCA") business increased to $416.3 million for the year ended December 31, 2016 from $6.4 million for 2015. Average LHS increased to $944.5 million for the fourth quarter of 2016, an increase of $513.6 million from the third quarter of 2016 and an increase of $919.8 million from the fourth quarter of 2015 as we continue to gain traction in that business.
Average total deposits for the year ended December 31, 2016 were $17.2 billion, an increase of $2.5 billion, or 17 percent, from 2015. Average total deposits for the fourth quarter of 2016 increased $766.1 million from the third quarter of 2016 and increased $2.8 billion from the fourth quarter of 2015. Average demand deposits for the year ended December 31, 2016 were $8.1 billion, an increase of $1.7 billion, or 26 percent, from 2015. Average demand deposits for the fourth quarter of 2016 increased $280.0 million, or 3 percent, to $9.1 billion from $8.8 billion from the third quarter of 2016, and increased $2.4 billion, or 35 percent, from $6.8 billion during the fourth quarter of 2015.
We recorded a $9.0 million provision for credit losses for the fourth quarter of 2016 compared to $22.0 million for the third quarter of 2016 and $14.0 million for the fourth quarter of 2015. The provision for the fourth quarter of 2016 was driven by the application of our methodology. The linked quarter decrease was primarily related to a meaningful decrease in criticized loans. The combined allowance for credit losses at December 31, 2016 decreased to 1.38 percent of LHI excluding mortgage finance loans compared to 1.51 percent at September 30, 2016 and 1.28 percent at December 31, 2015. The year-over-year increase of $29.4 million (20%) in the combined allowance for credit losses resulted from increases in the provision for credit losses primarily related to energy as well as continuing loan growth in 2016. In management’s opinion, the allowance is appropriate and is derived from consistent application of the methodology for establishing reserves for Texas Capital Bank’s loan portfolio.
We experienced a slight decrease in non-performing assets in the fourth quarter of 2016 on a linked quarter basis, keeping the ratio of total non-performing assets to total LHI plus other real estate owned (“OREO”) at 1.07 percent compared 1.07 percent for the third
quarter of 2016 and decreasing from 1.08 percent for the fourth quarter of 2015. Net charge-offs for the fourth quarter of 2016 were $20.8 million compared to $7.4 million for the third quarter of 2016 and $2.0 million for the fourth quarter of 2015. The linked quarter and year-over-year increase in net charge-offs resulted from realizing losses for which reserves had been provided in previous quarters. For the fourth quarter of 2016, net charge-offs related to energy loans were $16.3 million compared to $1.8 million for the third quarter of 2016 and none for the fourth quarter of 2015. For the fourth quarter of 2016, net charge-offs were 0.48 percent of total LHI, compared to 0.17 percent for the third quarter of 2016 and 0.05 percent for the same period in 2015. At December 31, 2016, total OREO was $19.0 million compared to $19.0 million at September 30, 2016 and $278,000 at December 31, 2015. The year-over-year increase was due to the foreclosure of a commercial property during the first quarter of 2016.
Non-interest income increased $7.5 million, or 66 percent, during the fourth quarter of 2016 compared to the same period of 2015, and increased $2.1 million, or 13 percent, compared to the third quarter of 2016. The year-over-year increase primarily related to an increase in brokered loan fees and other non-interest income. Brokered loan fees increased $3.0 million during the fourth quarter of 2016 compared to the same period of 2015 as a result of an increase in mortgage finance and LHS volumes. Other non-interest income increased $4.2 million compared to the fourth quarter of 2015, $3.1 million of which relates to increases in gain on sale of LHS and servicing fee income related to our MCA business. The linked-quarter increase in non-interest income primarily related to a $2.7 million, or 72 percent, increase in other non-interest income. This increase relates to increased gain on sale of LHS and servicing fee income, which had a combined linked quarter increase of $1.4 million from the third quarter of 2016 as a result of increasing volumes in our MCA business.
Non-interest expense for the fourth quarter of 2016 increased $19.5 million, or 22 percent, compared to the fourth quarter of 2015, and increased $11.7 million, or 12 percent, compared to the third quarter of 2016. The year-over-year increase is primarily related to a $16.1 million increase in salaries and employee benefits expense which was due to general business growth, as well as an increase in stock compensation expense as a result of increases in the market prices of our common stock. FDIC insurance assessment expense for the fourth quarter of 2016 increased $1.8 million compared to the same quarter in 2015 as a result of the increase in total assets from December 31, 2015 to December 31, 2016.
Stockholders’ equity increased by 24 percent from $1.6 billion at December 31, 2015 to $2.0 billion at December 31, 2016, primarily due to retention of net income and proceeds from the fourth quarter 2016 common stock offering. Texas Capital Bank is well capitalized under regulatory guidelines. At December 31, 2016, our ratio of tangible common equity to total tangible assets was 8.5 percent.
ABOUT TEXAS CAPITAL BANCSHARES, INC.
Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P SmallCap 600®, is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. Headquartered in Dallas, the bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.
This news release may be deemed to include forward-looking statements which are based on management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “intend” and similar expressions. A number of factors, many of which are beyond our control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the credit quality of our loan portfolio, general economic conditions in the United States and in our markets, including the continued impact on our customers from declines and volatility in oil and gas prices, rates of default or loan losses, volatility in the mortgage industry, the success or failure of our business strategies, future financial performance, future growth and earnings, the appropriateness of our allowance for loan losses and provision for credit losses, the impact of increased regulatory requirements and legislative changes on our business, increased competition, interest rate risk, the success or failure of new lines of business and new product or service offerings and the impact of new technologies. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission. The information contained in this release speaks only as of its date. We are under no obligation, and expressly disclaim such obligation, to update, alter or revise our forward-looking statements, whether as a result of new information, future events, or otherwise.
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| | | | | | | | | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. |
| SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) |
| (Dollars in thousands except per share data) |
| | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter |
| | 2016 | 2016 | 2016 | 2016 | 2015 |
| CONSOLIDATED STATEMENTS OF INCOME | | | | | |
| Interest income | $ | 188,671 |
| $ | 182,492 |
| $ | 172,442 |
| $ | 159,803 |
| $ | 154,820 |
|
| Interest expense | 17,448 |
| 15,753 |
| 15,373 |
| 15,020 |
| 12,632 |
|
| Net interest income | 171,223 |
| 166,739 |
| 157,069 |
| 144,783 |
| 142,188 |
|
| Provision for credit losses | 9,000 |
| 22,000 |
| 16,000 |
| 30,000 |
| 14,000 |
|
| Net interest income after provision for credit losses | 162,223 |
| 144,739 |
| 141,069 |
| 114,783 |
| 128,188 |
|
| Non-interest income | 18,835 |
| 16,716 |
| 13,932 |
| 11,297 |
| 11,320 |
|
| Non-interest expense | 106,523 |
| 94,799 |
| 94,255 |
| 86,820 |
| 87,042 |
|
| Income before income taxes | 74,535 |
| 66,656 |
| 60,746 |
| 39,260 |
| 52,466 |
|
| Income tax expense | 26,149 |
| 23,931 |
| 21,866 |
| 14,132 |
| 17,713 |
|
| Net income | 48,386 |
| 42,725 |
| 38,880 |
| 25,128 |
| 34,753 |
|
| Preferred stock dividends | 2,437 |
| 2,438 |
| 2,437 |
| 2,438 |
| 2,437 |
|
| Net income available to common stockholders | $ | 45,949 |
| $ | 40,287 |
| $ | 36,443 |
| $ | 22,690 |
| $ | 32,316 |
|
| | | | | | |
| Diluted EPS | $ | 0.96 |
| $ | 0.87 |
| $ | 0.78 |
| $ | 0.49 |
| $ | 0.70 |
|
| Diluted shares | 47,759,548 |
| 46,509,683 |
| 46,438,132 |
| 46,354,378 |
| 46,479,845 |
|
| CONSOLIDATED BALANCE SHEET DATA | | | | | |
| Total assets | $ | 21,697,134 |
| $ | 22,216,388 |
| $ | 21,080,994 |
| $ | 20,210,893 |
| $ | 18,903,821 |
|
| LHI | 13,001,011 |
| 12,662,394 |
| 12,502,513 |
| 12,059,849 |
| 11,745,674 |
|
| LHI, mortgage finance | 4,497,338 |
| 4,961,159 |
| 5,260,027 |
| 4,981,304 |
| 4,966,276 |
|
| Loans held for sale, at fair value | 968,929 |
| 648,684 |
| 221,347 |
| 94,702 |
| 86,075 |
|
Liquidity assets(1) | 2,725,645 |
| 3,471,074 |
| 2,624,170 |
| 2,644,418 |
| 1,681,374 |
|
| Securities | 24,874 |
| 26,356 |
| 27,372 |
| 28,461 |
| 29,992 |
|
| Demand deposits | 7,994,201 |
| 8,789,740 |
| 7,984,208 |
| 7,455,107 |
| 6,386,911 |
|
| Total deposits | 17,016,831 |
| 18,145,123 |
| 16,703,565 |
| 16,298,847 |
| 15,084,619 |
|
| Other borrowings | 2,109,575 |
| 1,751,420 |
| 2,115,445 |
| 1,704,859 |
| 1,643,051 |
|
| Subordinated notes | 281,044 |
| 280,954 |
| 280,863 |
| 280,773 |
| 280,682 |
|
| Long-term debt | 113,406 |
| 113,406 |
| 113,406 |
| 113,406 |
| 113,406 |
|
| Stockholders’ equity | 2,009,557 |
| 1,725,782 |
| 1,684,735 |
| 1,647,088 |
| 1,623,533 |
|
| | | | | | |
| End of period shares outstanding | 49,503,662 |
| 46,009,495 |
| 45,952,911 |
| 45,902,489 |
| 45,873,807 |
|
| Book value | $ | 37.56 |
| $ | 34.25 |
| $ | 33.40 |
| $ | 32.61 |
| $ | 32.12 |
|
Tangible book value(2) | $ | 37.17 |
| $ | 33.82 |
| $ | 32.97 |
| $ | 32.18 |
| $ | 31.69 |
|
| SELECTED FINANCIAL RATIOS | | | | | |
| Net interest margin | 3.11 | % | 3.14 | % | 3.18 | % | 3.13 | % | 3.01 | % |
| Return on average assets | 0.85 | % | 0.78 | % | 0.77 | % | 0.53 | % | 0.72 | % |
| Return on average common equity | 10.82 | % | 10.20 | % | 9.65 | % | 6.13 | % | 8.82 | % |
| Non-interest income to earning assets | 0.34 | % | 0.32 | % | 0.28 | % | 0.24 | % | 0.24 | % |
Efficiency ratio(3) | 56.0 | % | 51.7 | % | 55.1 | % | 55.6 | % | 56.7 | % |
| Non-interest expense to earning assets | 1.93 | % | 1.79 | % | 1.91 | % | 1.88 | % | 1.84 | % |
Tangible common equity to total tangible assets(4) | 8.5 | % | 7.0 | % | 7.2 | % | 7.3 | % | 7.7 | % |
| Common Equity Tier 1 | 9.0 | % | 7.6 | % | 7.4 | % | 7.5 | % | 7.5 | % |
| Tier 1 capital | 10.2 | % | 8.8 | % | 8.6 | % | 8.8 | % | 8.8 | % |
| Total capital | 12.5 | % | 11.1 | % | 10.9 | % | 11.1 | % | 11.1 | % |
| Leverage | 9.3 | % | 8.4 | % | 8.7 | % | 9.1 | % | 8.9 | % |
| |
| (1) | Liquidity assets include Federal funds sold and deposits in other banks. |
| |
| (2) | Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end. |
| |
| (3) | Non-interest expense divided by the sum of net interest income and non-interest income. |
| |
| (4) | Stockholders’ equity excluding preferred stock and accumulated other comprehensive income less goodwill and intangibles divided by total assets less accumulated other comprehensive income and goodwill and intangibles. |
|
| | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
| (Dollars in thousands) |
| | December 31, 2016 | December 31, 2015 | % Change |
| Assets | | | |
| Cash and due from banks | $ | 113,707 |
| $ | 109,496 |
| 4 | % |
| Interest-bearing deposits | 2,700,645 |
| 1,626,374 |
| 66 | % |
| Federal funds sold and securities purchased under resale agreements | 25,000 |
| 55,000 |
| (55 | )% |
| Securities, available-for-sale | 24,874 |
| 29,992 |
| (17 | )% |
| Loans held for sale, at fair value | 968,929 |
| 86,075 |
| N/M |
|
| LHI, mortgage finance | 4,497,338 |
| 4,966,276 |
| (9 | )% |
| LHI (net of unearned income) | 13,001,011 |
| 11,745,674 |
| 11 | % |
| Less: Allowance for loan losses | 168,126 |
| 141,111 |
| 19 | % |
| LHI, net | 17,330,223 |
| 16,570,839 |
| 5 | % |
| Mortgage servicing rights, net | 28,536 |
| 423 |
| 100 | % |
| Premises and equipment, net | 19,775 |
| 23,561 |
| (16 | )% |
| Accrued interest receivable and other assets | 465,933 |
| 382,101 |
| 22 | % |
| Goodwill and intangibles, net | 19,512 |
| 19,960 |
| (2 | )% |
| Total assets | $ | 21,697,134 |
| $ | 18,903,821 |
| 15 | % |
| | | | |
| Liabilities and Stockholders’ Equity | | | |
| Liabilities: | | | |
| Deposits: | | | |
| Non-interest bearing | $ | 7,994,201 |
| $ | 6,386,911 |
| 25 | % |
| Interest bearing | 9,022,630 |
| 8,697,708 |
| 4 | % |
| Total deposits | 17,016,831 |
| 15,084,619 |
| 13 | % |
| | | |
|
|
| Accrued interest payable | 5,498 |
| 5,097 |
| 8 | % |
| Other liabilities | 161,223 |
| 153,433 |
| 5 | % |
| Federal funds purchased and repurchase agreements | 109,575 |
| 143,051 |
| (23 | )% |
| Other borrowings | 2,000,000 |
| 1,500,000 |
| 33 | % |
| Subordinated notes, net | 281,044 |
| 280,682 |
| — |
|
| Trust preferred subordinated debentures | 113,406 |
| 113,406 |
| — |
|
| Total liabilities | 19,687,577 |
| 17,280,288 |
| 14 | % |
| | | | |
| Stockholders’ equity: | | | |
| Preferred stock, $.01 par value, $1,000 liquidation value: | | | |
| Authorized shares - 10,000,000 | | | |
| Issued shares - 6,000,000 shares issued at December 31, 2016 and 2015 | 150,000 |
| 150,000 |
| − |
|
| Common stock, $.01 par value: | | | |
| Authorized shares - 100,000,000 | | | |
| Issued shares - 49,504,079 and 45,874,224 at December 31, 2016 and 2015, respectively | 495 |
| 459 |
| 8 | % |
| Additional paid-in capital | 955,468 |
| 714,546 |
| 34 | % |
| Retained earnings | 903,187 |
| 757,818 |
| 19 | % |
| Treasury stock (shares at cost: 417 at December 31, 2016 and 2015) | (8 | ) | (8 | ) | — |
|
| Accumulated other comprehensive income, net of taxes | 415 |
| 718 |
| (42 | )% |
| Total stockholders’ equity | 2,009,557 |
| 1,623,533 |
| 24 | % |
| Total liabilities and stockholders’ equity | $ | 21,697,134 |
| $ | 18,903,821 |
| 15 | % |
|
| | | | | | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. | | | | |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | | | | |
| (Dollars in thousands except per share data) | | | | |
| | Three Months Ended December 31 | Year Ended December 31 |
| | 2016 | 2015 | 2016 | 2015 |
| Interest income | | | | |
| Interest and fees on loans | $ | 182,909 |
| $ | 152,200 |
| $ | 684,582 |
| $ | 594,729 |
|
| Securities | 228 |
| 275 |
| 967 |
| 1,254 |
|
| Federal funds sold | 338 |
| 255 |
| 1,547 |
| 682 |
|
| Deposits in other banks | 5,196 |
| 2,090 |
| 16,312 |
| 6,293 |
|
| Total interest income | 188,671 |
| 154,820 |
| 703,408 |
| 602,958 |
|
| Interest expense | | | | |
| Deposits | 10,432 |
| 7,068 |
| 37,175 |
| 24,578 |
|
| Federal funds purchased | 156 |
| 67 |
| 518 |
| 284 |
|
| Repurchase agreements | 1 |
| 5 |
| 9 |
| 19 |
|
| Other borrowings | 1,862 |
| 642 |
| 6,119 |
| 2,232 |
|
| Subordinated notes | 4,191 |
| 4,191 |
| 16,764 |
| 16,764 |
|
| Trust preferred subordinated debentures | 806 |
| 659 |
| 3,009 |
| 2,551 |
|
| Total interest expense | 17,448 |
| 12,632 |
| 63,594 |
| 46,428 |
|
| Net interest income | 171,223 |
| 142,188 |
| 639,814 |
| 556,530 |
|
| Provision for credit losses | 9,000 |
| 14,000 |
| 77,000 |
| 53,250 |
|
| Net interest income after provision for credit losses | 162,223 |
| 128,188 |
| 562,814 |
| 503,280 |
|
| Non-interest income | | | | |
| Service charges on deposit accounts | 2,940 |
| 1,984 |
| 10,341 |
| 8,323 |
|
| Trust fee income | 1,244 |
| 1,313 |
| 4,268 |
| 5,022 |
|
| Bank owned life insurance (BOLI) income | 481 |
| 567 |
| 2,073 |
| 2,011 |
|
| Brokered loan fees | 7,249 |
| 4,267 |
| 25,339 |
| 18,661 |
|
| Swap fees | 536 |
| 1,000 |
| 2,866 |
| 4,275 |
|
| Other | 6,385 |
| 2,189 |
| 15,893 |
| 9,446 |
|
| Total non-interest income | 18,835 |
| 11,320 |
| 60,780 |
| 47,738 |
|
| Non-interest expense | | | | |
| Salaries and employee benefits | 66,081 |
| 49,999 |
| 228,985 |
| 192,610 |
|
| Net occupancy expense | 5,937 |
| 5,809 |
| 23,221 |
| 23,182 |
|
| Marketing | 4,617 |
| 4,349 |
| 17,303 |
| 16,491 |
|
| Legal and professional | 6,443 |
| 6,974 |
| 23,326 |
| 22,150 |
|
| Communications and technology | 6,334 |
| 5,520 |
| 25,562 |
| 21,425 |
|
| FDIC insurance assessment | 6,573 |
| 4,741 |
| 24,440 |
| 17,231 |
|
| Allowance and other carrying costs for OREO | 59 |
| 6 |
| 824 |
| 22 |
|
| Other | 10,479 |
| 9,644 |
| 38,736 |
| 33,412 |
|
| Total non-interest expense | 106,523 |
| 87,042 |
| 382,397 |
| 326,523 |
|
| Income before income taxes | 74,535 |
| 52,466 |
| 241,197 |
| 224,495 |
|
| Income tax expense | 26,149 |
| 17,713 |
| 86,078 |
| 79,641 |
|
| Net income | 48,386 |
| 34,753 |
| 155,119 |
| 144,854 |
|
| Preferred stock dividends | 2,437 |
| 2,437 |
| 9,750 |
| 9,750 |
|
| Net income available to common stockholders | $ | 45,949 |
| $ | 32,316 |
| $ | 145,369 |
| $ | 135,104 |
|
| | | | | |
| Basic earnings per common share | $ | 0.97 |
| $ | 0.70 |
| $ | 3.14 |
| $ | 2.95 |
|
| Diluted earnings per common share | $ | 0.96 |
| $ | 0.70 |
| $ | 3.11 |
| $ | 2.91 |
|
|
| | | | | | | | | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. |
| SUMMARY OF LOAN LOSS EXPERIENCE |
| (Dollars in thousands) |
| | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter |
| | 2016 | 2016 | 2016 | 2016 | 2015 |
| Allowance for loan losses: | | | | | |
| Beginning balance | $ | 180,436 |
| $ | 167,397 |
| $ | 162,510 |
| $ | 141,111 |
| $ | 130,540 |
|
| Loans charged-off: | | | | | |
| Commercial | 22,326 |
| 9,945 |
| 15,791 |
| 8,496 |
| 4,976 |
|
| Real estate | — |
| — |
| 528 |
| — |
| 43 |
|
| Consumer | 7 |
| 40 |
| — |
| — |
| — |
|
| Leases | — |
| — |
| — |
| — |
| — |
|
| Total charge-offs | 22,333 |
| 9,985 |
| 16,319 |
| 8,496 |
| 5,019 |
|
| Recoveries: | | | | | |
| Commercial | 1,535 |
| 2,495 |
| 4,294 |
| 1,040 |
| 2,846 |
|
| Real estate | 27 |
| 15 |
| 13 |
| 8 |
| 5 |
|
| Construction | — |
| — |
| 34 |
| — |
| 3 |
|
| Consumer | 5 |
| 5 |
| 4 |
| 7 |
| 154 |
|
| Leases | 6 |
| 26 |
| — |
| 45 |
| 11 |
|
| Total recoveries | 1,573 |
| 2,541 |
| 4,345 |
| 1,100 |
| 3,019 |
|
| Net charge-offs | 20,760 |
| 7,444 |
| 11,974 |
| 7,396 |
| 2,000 |
|
| Provision for loan losses | 8,450 |
| 20,483 |
| 16,861 |
| 28,795 |
| 12,571 |
|
| Ending balance | $ | 168,126 |
| $ | 180,436 |
| $ | 167,397 |
| $ | 162,510 |
| $ | 141,111 |
|
| | | | | | |
| Allowance for off-balance sheet credit losses: | | | | | |
| Beginning balance | $ | 10,872 |
| $ | 9,355 |
| $ | 10,216 |
| $ | 9,011 |
| $ | 7,582 |
|
| Provision for off-balance sheet credit losses | 550 |
| 1,517 |
| (861 | ) | 1,205 |
| 1,429 |
|
| Ending balance | $ | 11,422 |
| $ | 10,872 |
| $ | 9,355 |
| $ | 10,216 |
| $ | 9,011 |
|
| | | | | | |
| Total allowance for credit losses | $ | 179,548 |
| $ | 191,308 |
| $ | 176,752 |
| $ | 172,726 |
| $ | 150,122 |
|
| | | | | | |
| Total provision for credit losses | $ | 9,000 |
| $ | 22,000 |
| $ | 16,000 |
| $ | 30,000 |
| $ | 14,000 |
|
| | | | | | |
| Allowance for loan losses to LHI | 0.96 | % | 1.02 | % | 0.94 | % | 0.95 | % | 0.84 | % |
Allowance for loan losses to LHI excluding mortgage finance loans(2) | 1.29 | % | 1.42 | % | 1.34 | % | 1.35 | % | 1.20 | % |
| Allowance for loan losses to average LHI | 0.98 | % | 1.05 | % | 1.00 | % | 1.04 | % | 0.92 | % |
Allowance for loan losses to average LHI excluding mortgage finance loans(2) | 1.32 | % | 1.43 | % | 1.36 | % | 1.36 | % | 1.21 | % |
Net charge-offs to average LHI(1) | 0.48 | % | 0.17 | % | 0.29 | % | 0.19 | % | 0.05 | % |
Net charge-offs to average LHI excluding mortgage finance loans(1)(2) | 0.65 | % | 0.24 | % | 0.39 | % | 0.25 | % | 0.07 | % |
Net charge-offs to average LHI for last twelve months(1) | 0.29 | % | 0.18 | % | 0.15 | % | 0.10 | % | 0.07 | % |
Net charge-offs to average LHI, excluding mortgage finance loans, for last twelve months(1)(2) | 0.38 | % | 0.24 | % | 0.20 | % | 0.14 | % | 0.10 | % |
Total provision for credit losses to average LHI(1) | 0.21 | % | 0.51 | % | 0.39 | % | 0.77 | % | 0.36 | % |
Total provision for credit losses to average LHI excluding mortgage finance loans(1)(2) | 0.28 | % | 0.70 | % | 0.52 | % | 1.01 | % | 0.47 | % |
| Combined allowance for credit losses to LHI | 1.03 | % | 1.09 | % | 1.00 | % | 1.01 | % | 0.90 | % |
Combined allowance for credit losses to LHI, excluding mortgage finance loans(2) | 1.38 | % | 1.51 | % | 1.41 | % | 1.43 | % | 1.28 | % |
| | | | | | |
| Non-performing assets (NPAs): | | | | | |
| Non-accrual loans | $ | 167,791 |
| $ | 169,113 |
| $ | 165,429 |
| $ | 173,156 |
| $ | 179,788 |
|
| Other real estate owned (OREO) | 18,961 |
| 19,009 |
| 18,727 |
| 17,585 |
| 278 |
|
| Total | $ | 186,752 |
| $ | 188,122 |
| $ | 184,156 |
| $ | 190,741 |
| $ | 180,066 |
|
| | | | | | |
|
| | | | | | | | | | | | | | | |
| | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter |
| | 2016 | 2016 | 2016 | 2016 | 2015 |
| | | | | | |
| Non-accrual loans to LHI | 0.96 | % | 0.96 | % | 0.93 | % | 1.02 | % | 1.08 | % |
Non-accrual loans to LHI excluding mortgage finance loans(2) | 1.29 | % | 1.34 | % | 1.32 | % | 1.44 | % | 1.53 | % |
| Total NPAs to LHI plus OREO | 1.07 | % | 1.07 | % | 1.04 | % | 1.12 | % | 1.08 | % |
Total NPAs to LHI excluding mortgage finance loans plus OREO(2) | 1.43 | % | 1.48 | % | 1.47 | % | 1.58 | % | 1.53 | % |
| Total NPAs to earning assets | 0.89 | % | 0.87 | % | 0.90 | % | 0.97 | % | 0.99 | % |
| Allowance for loan losses to non-accrual loans | 1.0x |
| 1.1x |
| 1.0x |
| 0.9x |
| 0.8x |
|
| | | | | | |
| Restructured loans | $ | — |
| $ | — |
| $ | 249 |
| $ | 249 |
| $ | 249 |
|
Loans past due 90 days and still accruing(3) | $ | 10,729 |
| $ | 9,706 |
| $ | 7,743 |
| $ | 10,100 |
| $ | 7,013 |
|
| | | | | | |
| Loans past due 90 days to LHI | 0.06 | % | 0.06 | % | 0.04 | % | 0.06 | % | 0.04 | % |
Loans past due 90 days to LHI excluding mortgage finance loans(2) | 0.08 | % | 0.08 | % | 0.06 | % | 0.08 | % | 0.06 | % |
| |
| (1) | Interim period ratios are annualized. |
| |
| (2) | The indicated ratios are presented with and excluding the mortgage finance loans because the risk profile of our mortgage finance loans is different than our other loans held for investment. No provision for credit losses is allocated to these loans based on the internal risk grade assigned. |
| |
| (3) | At December 31, 2016, loans past due 90 days and still accruing includes premium finance loans of $6.8 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
|
| | | | | | | | | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| (Dollars in thousands) |
| | | | | | |
| | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter |
| | 2016 | 2016 | 2016 | 2016 | 2015 |
| Interest income | | | | | |
| Interest and fees on loans | $ | 182,909 |
| $ | 177,724 |
| $ | 168,064 |
| $ | 155,885 |
| $ | 152,200 |
|
| Securities | 228 |
| 232 |
| 246 |
| 261 |
| 275 |
|
| Federal funds sold | 338 |
| 455 |
| 382 |
| 372 |
| 255 |
|
| Deposits in other banks | 5,196 |
| 4,081 |
| 3,750 |
| 3,285 |
| 2,090 |
|
| Total interest income | 188,671 |
| 182,492 |
| 172,442 |
| 159,803 |
| 154,820 |
|
| Interest expense | | | | | |
| Deposits | 10,432 |
| 8,950 |
| 8,971 |
| 8,822 |
| 7,068 |
|
| Federal funds purchased | 156 |
| 126 |
| 110 |
| 126 |
| 67 |
|
| Repurchase agreements | 1 |
| 3 |
| 2 |
| 3 |
| 5 |
|
| Other borrowings | 1,862 |
| 1,730 |
| 1,365 |
| 1,162 |
| 642 |
|
| Subordinated notes | 4,191 |
| 4,191 |
| 4,191 |
| 4,191 |
| 4,191 |
|
| Trust preferred subordinated debentures | 806 |
| 753 |
| 734 |
| 716 |
| 659 |
|
| Total interest expense | 17,448 |
| 15,753 |
| 15,373 |
| 15,020 |
| 12,632 |
|
| Net interest income | 171,223 |
| 166,739 |
| 157,069 |
| 144,783 |
| 142,188 |
|
| Provision for credit losses | 9,000 |
| 22,000 |
| 16,000 |
| 30,000 |
| 14,000 |
|
| Net interest income after provision for credit losses | 162,223 |
| 144,739 |
| 141,069 |
| 114,783 |
| 128,188 |
|
| Non-interest income | | | | | |
| Service charges on deposit accounts | 2,940 |
| 2,880 |
| 2,411 |
| 2,110 |
| 1,984 |
|
| Trust fee income | 1,244 |
| 1,113 |
| 1,098 |
| 813 |
| 1,313 |
|
| Bank owned life insurance (BOLI) income | 481 |
| 520 |
| 536 |
| 536 |
| 567 |
|
| Brokered loan fees | 7,249 |
| 7,581 |
| 5,864 |
| 4,645 |
| 4,267 |
|
| Swap fees | 536 |
| 918 |
| 1,105 |
| 307 |
| 1,000 |
|
| Other | 6,385 |
| 3,704 |
| 2,918 |
| 2,886 |
| 2,189 |
|
| Total non-interest income | 18,835 |
| 16,716 |
| 13,932 |
| 11,297 |
| 11,320 |
|
| Non-interest expense | | | | | |
| Salaries and employee benefits | 66,081 |
| 56,722 |
| 54,810 |
| 51,372 |
| 49,999 |
|
| Net occupancy expense | 5,937 |
| 5,634 |
| 5,838 |
| 5,812 |
| 5,809 |
|
| Marketing | 4,617 |
| 4,292 |
| 4,486 |
| 3,908 |
| 4,349 |
|
| Legal and professional | 6,443 |
| 5,333 |
| 6,226 |
| 5,324 |
| 6,974 |
|
| Communications and technology | 6,334 |
| 6,620 |
| 6,391 |
| 6,217 |
| 5,520 |
|
| FDIC insurance assessment | 6,573 |
| 6,355 |
| 6,043 |
| 5,469 |
| 4,741 |
|
| Allowance and other carrying costs for OREO | 59 |
| 269 |
| 260 |
| 236 |
| 6 |
|
| Other | 10,479 |
| 9,574 |
| 10,201 |
| 8,482 |
| 9,644 |
|
| Total non-interest expense | 106,523 |
| 94,799 |
| 94,255 |
| 86,820 |
| 87,042 |
|
| Income before income taxes | 74,535 |
| 66,656 |
| 60,746 |
| 39,260 |
| 52,466 |
|
| Income tax expense | 26,149 |
| 23,931 |
| 21,866 |
| 14,132 |
| 17,713 |
|
| Net income | 48,386 |
| 42,725 |
| 38,880 |
| 25,128 |
| 34,753 |
|
| Preferred stock dividends | 2,437 |
| 2,438 |
| 2,437 |
| 2,438 |
| 2,437 |
|
| Net income available to common shareholders | $ | 45,949 |
| $ | 40,287 |
| $ | 36,443 |
| $ | 22,690 |
| $ | 32,316 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TEXAS CAPITAL BANCSHARES, INC. |
| QUARTERLY FINANCIAL SUMMARY - UNAUDITED |
| Consolidated Daily Average Balances, Average Yields and Rates |
| (Dollars in thousands) |
| | 4th Quarter 2016 | | 3rd Quarter 2016 | | 2nd Quarter 2016 | | 1st Quarter 2016 | | 4th Quarter 2015 |
| | Average Balance | Revenue/ Expense (1) | Yield/ Rate | | Average Balance | Revenue/ Expense (1) | Yield/ Rate | | Average
Balance | Revenue/
Expense (1) | Yield/
Rate | | Average
Balance | Revenue/
Expense (1) | Yield/
Rate | | Average
Balance | Revenue/
Expense (1) | Yield/
Rate |
| Assets | | | | | | | | | | | | | | | | | | | |
| Securities - Taxable | $ | 25,008 |
| $ | 221 |
| 3.53 | % | | $ | 26,051 |
| $ | 228 |
| 3.47 | % | | $ | 27,097 |
| $ | 240 |
| 3.57 | % | | $ | 28,343 |
| $ | 254 |
| 3.60 | % | | $ | 29,973 |
| $ | 267 |
| 3.53 | % |
Securities - Non-taxable(2) | 531 |
| 9 |
| 6.37 | % | | 564 |
| 8 |
| 5.82 | % | | 564 |
| 8 |
| 5.87 | % | | 759 |
| 11 |
| 5.70 | % | | 829 |
| 12 |
| 5.74 | % |
| Federal funds sold and securities purchased under resale agreements | 254,008 |
| 338 |
| 0.53 | % | | 369,215 |
| 455 |
| 0.49 | % | | 312,832 |
| 382 |
| 0.49 | % | | 304,425 |
| 372 |
| 0.49 | % | | 375,181 |
| 255 |
| 0.27 | % |
| Interest-bearing deposits in other banks | 3,812,076 |
| 5,197 |
| 0.54 | % | | 3,192,141 |
| 4,080 |
| 0.51 | % | | 2,871,295 |
| 3,750 |
| 0.53 | % | | 2,649,164 |
| 3,285 |
| 0.50 | % | | 3,081,882 |
| 2,090 |
| 0.27 | % |
| Loans held for sale, at fair value | 944,484 |
| 7,903 |
| 3.33 | % | | 430,869 |
| 3,662 |
| 3.38 | % | | 157,898 |
| 1,350 |
| 3.44 | % | | 126,084 |
| 1,094 |
| 3.49 | % | | 24,658 |
| 237 |
| 3.81 | % |
| LHI, mortgage finance loans | 4,371,475 |
| 35,081 |
| 3.19 | % | | 4,658,804 |
| 36,655 |
| 3.13 | % | | 4,412,091 |
| 33,974 |
| 3.10 | % | | 3,724,513 |
| 29,037 |
| 3.14 | % | | 3,669,022 |
| 27,846 |
| 3.01 | % |
| LHI | 12,701,868 |
| 140,130 |
| 4.39 | % | | 12,591,561 |
| 137,407 |
| 4.34 | % | | 12,276,272 |
| 132,740 |
| 4.35 | % | | 11,910,788 |
| 125,754 |
| 4.25 | % | | 11,693,464 |
| 124,117 |
| 4.21 | % |
Less allowance for loan losses | 180,727 |
| — |
| — |
| | 168,086 |
| — |
| — |
| | 164,316 |
| — |
| — |
| | 141,125 |
| — |
| — |
| | 130,822 |
| — |
| — |
|
| LHI, net of allowance | 16,892,616 |
| 175,211 |
| 4.13 | % | | 17,082,279 |
| 174,062 |
| 4.05 | % | | 16,524,047 |
| 166,714 |
| 4.06 | % | | 15,494,176 |
| 154,791 |
| 4.02 | % | | 15,231,664 |
| 151,963 |
| 3.96 | % |
| Total earning assets | 21,928,723 |
| 188,879 |
| 3.43 | % | | 21,101,119 |
| 182,495 |
| 3.44 | % | | 19,893,733 |
| 172,444 |
| 3.49 | % | | 18,602,951 |
| 159,807 |
| 3.46 | % | | 18,744,187 |
| 154,824 |
| 3.28 | % |
| Cash and other assets | 595,671 |
| | | | 588,440 |
| | | | 544,737 |
| | | | 506,025 |
| | | | 499,712 |
| | |
| Total assets | $ | 22,524,394 |
| | | | $ | 21,689,559 |
| | | | $ | 20,438,470 |
| | | | $ | 19,108,976 |
| | | | $ | 19,243,899 |
| | |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | |
| Transaction deposits | $ | 2,281,240 |
| $ | 2,129 |
| 0.37 | % | | $ | 2,301,362 |
| $ | 1,960 |
| 0.34 | % | | $ | 2,207,726 |
| $ | 1,749 |
| 0.32 | % | | $ | 2,004,817 |
| $ | 1,381 |
| 0.28 | % | | $ | 2,150,740 |
| $ | 950 |
| 0.18 | % |
| Savings deposits | 6,711,083 |
| 7,592 |
| 0.45 | % | | 6,177,681 |
| 6,228 |
| 0.40 | % | | 6,388,133 |
| 6,494 |
| 0.41 | % | | 6,335,425 |
| 6,714 |
| 0.43 | % | | 6,316,191 |
| 5,370 |
| 0.34 | % |
| Time deposits | 474,548 |
| 711 |
| 0.60 | % | | 501,701 |
| 763 |
| 0.61 | % | | 486,610 |
| 727 |
| 0.60 | % | | 509,762 |
| 727 |
| 0.57 | % | | 539,421 |
| 748 |
| 0.55 | % |
| Deposits in foreign branches | — |
| — |
| — | % | | — |
| — |
| — | % | | — |
| — |
| — | % | | — |
| — |
| — | % | | — |
| — |
| — | % |
| Total interest bearing deposits | 9,466,871 |
| 10,432 |
| 0.44 | % | | 8,980,744 |
| 8,951 |
| 0.40 | % | | 9,082,469 |
| 8,970 |
| 0.40 | % | | 8,850,004 |
| 8,822 |
| 0.40 | % | | 9,006,352 |
| 7,068 |
| 0.31 | % |
| Other borrowings | 1,553,010 |
| 2,017 |
| 0.52 | % | | 1,607,613 |
| 1,860 |
| 0.46 | % | | 1,411,387 |
| 1,476 |
| 0.42 | % | | 1,346,998 |
| 1,292 |
| 0.39 | % | | 1,327,087 |
| 714 |
| 0.21 | % |
| Subordinated notes | 280,985 |
| 4,191 |
| 5.93 | % | | 280,895 |
| 4,191 |
| 5.94 | % | | 280,805 |
| 4,191 |
| 6.00 | % | | 280,713 |
| 4,191 |
| 6.00 | % | | 280,622 |
| 4,191 |
| 5.93 | % |
| Trust preferred subordinated debentures | 113,406 |
| 806 |
| 2.83 | % | | 113,406 |
| 752 |
| 2.64 | % | | 113,406 |
| 735 |
| 2.61 | % | | 113,406 |
| 716 |
| 2.54 | % | | 113,406 |
| 659 |
| 2.31 | % |
| Total interest bearing liabilities | 11,414,272 |
| 17,446 |
| 0.61 | % | | 10,982,658 |
| 15,754 |
| 0.57 | % | | 10,888,067 |
| 15,372 |
| 0.57 | % | | 10,591,121 |
| 15,021 |
| 0.57 | % | | 10,727,467 |
| 12,632 |
| 0.47 | % |
| Demand deposits | 9,129,668 |
| | | | 8,849,725 |
| | | | 7,767,693 |
| | | | 6,730,586 |
| | | | 6,755,615 |
| | |
| Other liabilities | 141,153 |
| | | | 135,141 |
| | | | 113,927 |
| | | | 148,418 |
| | | | 157,425 |
| | |
| Stockholders’ equity | 1,839,301 |
| | | | 1,722,035 |
| | | | 1,668,783 |
| | | | 1,638,851 |
| | | | 1,603,392 |
| | |
| Total liabilities and stockholders’ equity | $ | 22,524,394 |
| | | | $ | 21,689,559 |
| | | | $ | 20,438,470 |
| | | | $ | 19,108,976 |
| | | | $ | 19,243,899 |
| | |
Net interest income(2) | | $ | 171,433 |
| | | | $ | 166,741 |
| | | | $ | 157,072 |
| | | | $ | 144,786 |
| | | | $ | 142,192 |
| |
| Net interest margin | | | 3.11 | % | | | | 3.14 | % | | | | 3.18 | % | | | | 3.13 | % | | | | 3.01 | % |
| |
| (1) | The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income. |
| |
| (2) | Taxable equivalent rates used where applicable. |
