Exhibit 99.1
Reliant Bancorp, Inc. Reports Record Second Quarter Loans
Reports Second Quarter Net Income of $2.1 Million, or $0.19 Per Fully Diluted Share
Net Income, Excluding Merger Related Charges, Rises to $3.9 Million, or $0.34 Per Diluted Share
BRENTWOOD, Tenn.--(BUSINESS WIRE)--July 25, 2018--Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) (Nasdaq: RBNC), the parent company for Reliant Bank (“Reliant”), announced its second quarter results, including record loans and assets for the quarter ended June 30, 2018, and the successful conversion of the Community First's operating platform to Reliant's core system.
Second quarter net income attributable to common shareholders was $2.1 million, or $0.19 per fully diluted share, compared to $2.2 million, or $0.28 per fully diluted share, for the second quarter of 2017 and $3.7 million, or $0.33 per fully diluted share for the first quarter of 2018. Second quarter year to date net income attributable to common shareholders was $5.9 million, or $0.51 per fully diluted share, compared to $4.2 million, or $0.54 per fully diluted share for the same period in 2017. The 2018 results included merger related expenses of approximately $2.5 million for the second quarter and $2.7 million year to date arising from the merger with Community First that closed on January 1, 2018. Excluding merger related charges, second quarter net income attributable to common shareholders rose to $3.9 million, compared to $2.2 million for the second quarter of 2017 and $3.7 million for the first quarter of 2018. Excluding merger related charges, second quarter net income attributable to common shareholders rose 21.4% to $0.34 per fully diluted share when compared to the second quarter of 2017. Excluding merger related charges, net income attributable to common shareholders for the first six months of 2018 rose to $7.6 million, or $0.66 per fully diluted share, compared to $4.2 million, or $0.54 per fully diluted share, for the same period in 2017, an increase of 22.2%.
“Our second quarter results represent the third consecutive quarter of higher earnings, excluding merger related charges, which were driven by accelerating loan growth in the second half of the quarter, improved asset quality, efficiencies gained with the Community First merger and conversion, and increased bank segment noninterest income,” stated DeVan D. Ard, Jr., Chairman, President, and Chief Executive Officer. “We completed the conversion of Community First's systems in mid-May and expect to realize additional operating efficiencies and revenue synergies in the third quarter. Our associates worked very hard on all aspects of the conversion, and as a result customer retention has been very high.
“Job growth continues to power Nashville’s economy, led by Williamson and Maury counties, where employment grew 33% and 30%, respectively, from 2012 to 2017 according to the BLS. Further, Williamson County’s population is anticipated to grow 153% from 2010 to 2040, followed by Rutherford County, where we will open a new full service office in August, at a 99% growth rate. Jobs, low unemployment, and a relatively low cost of living continue to spur loan demand by businesses and individuals across the region, and have led to intense competition for deposits. We expect these positive economic trends to continue in the third quarter and for both loan yield and deposit costs to increase,” concluded Ard.
Key Highlights
- Net loans rose 59.4% to $1.1 billion in the second quarter of 2018, compared with the second quarter of 2017 and were up 3.3% (13.2% annualized) when compared to the first quarter of 2018. Second quarter new loan production totaled $124.2 million, an increase of 22%, compared with the first quarter of 2018. New loan production was primarily centered in C&D (36%), C&I (19%), and CRE (18%) loans.
- Total deposits grew 58.8% to $1.3 billion, compared with the second quarter of 2017, and declined slightly by 1.1% from the first quarter of 2018. We anticipate the openings of new banking centers in Murfreesboro in the third quarter and Chattanooga in the fourth quarter to be instrumental in growing core deposits in those markets.
- Noninterest bearing deposits rose 65.1% to $225.4 million at June 30, 2018, compared with the second quarter of 2017, and declined slightly by1.2% from the first quarter of 2018.
- Net interest margin declined to 3.74% for the second quarter of 2018, compared to 4.01% and 3.79% for the second of 2017 and the first quarter of 2018, respectively. The decrease in net interest margin in the second quarter of 2018 was due primarily to our cost of funds increasing at a faster pace than our yields on earning assets.
- Noninterest income rose 83.1% to $2.3 million in the second quarter of 2018, compared with $1.2 million in the second quarter of 2017, and was down 24.6% from $3.0 million, compared with the first quarter of 2018, due mainly to a decline of 43.9% in mortgage revenue. Based on the joint-venture agreement, the Company does not absorb any losses incurred by its mortgage venture. Bank segment noninterest income rose 118.7%, compared with the second quarter of 2017, and increased 0.9%, compared to the first quarter of 2018, driven by a 16.7% increase in service charges resulting from revised deposit product pricing at conversion.
- Noninterest expense rose 93.2% to $14.0 million, compared with $7.3 million in the second quarter of 2017. Noninterest expense rose 15.4% from $12.2 million in the first quarter of 2018. Noninterest expenses included pre-tax merger related expenses of approximately $2.5 million in the second quarter of 2018. Excluding merger related expenses, noninterest expenses declined 3.6%, compared with the first quarter of 2018, including lower salaries and employee benefits, occupancy, information technology and other operating expenses. Bank segment noninterest expenses rose 53.5% and mortgage segment noninterest expenses were up 88.1%, compared with the second quarter of 2017. We remain on track to recognize our estimated cost savings for the merger.
- Asset quality remained strong at June 30, 2018. Nonperforming assets to total assets was 0.39% in the second quarter of 2018, compared with 0.61% and 0.50% for the second quarter of 2017 and first quarter of 2018, respectively. Net recoveries were 0.05% in the second quarter of 2018, up from 0.03% in the second quarter of 2017, as we aggressively pursue problem asset mitigation.
- Our provision for loan losses for the second quarter of 2018 was $300,000 compared to $245,000 and $137,000, for the second 2017 and first quarter of 2018, respectively. The increase when compared to the first quarter of 2018 was driven by growth in loans.
Capital Position
Reliant’s capital position remained strong at June 30, 2018. The estimated tier 1 leverage ratio was 9.98%, compared with 10.25% at March 31, 2018, and 10.29% at June 30, 2017. Total stockholders’ equity rose to $202.3 million and tangible book value per common share was $13.06 at June 30, 2018, compared to $12.94 at March 31, 2018, and $12.73 at June 30, 2017, reflecting the impact of our private placement in the third quarter of 2017 and our merger with Community First in the first quarter of 2018 as well as earnings accretion. Reliant’s capital ratios are expected to be maintained significantly above the ratios of a “well-capitalized” institution.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures. The non-GAAP measures in this release below include “adjusted net interest margin,” “adjusted net income attributable to common shareholders and related impact on ROA, ROE, and earnings per diluted share,” and “efficiency ratio.” We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe certain purchase accounting adjustments, income relating to the recoveries of purchased credit impaired loans, and merger expenses do not necessarily reflect the operational performance of the business in these periods; accordingly, it is useful to consider these line items with and without such adjustments. We believe this presentation also increases comparability of period-to-period results.
Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under generally accepted accounting principles.
About Reliant Bancorp and Reliant Bank
Reliant Bancorp, Inc. is a Brentwood, Tennessee-based bank holding company which operates banking centers in Davidson, Robertson, Sumner, Williamson, Maury and Hickman counties, Tennessee along with loan and deposit production offices in Rutherford and Hamilton counties, Tennessee, through its wholly-owned subsidiary Reliant Bank. Reliant Bank is a full-service commercial bank that offers a variety of deposit, lending and mortgage products and services to business and consumer customers. As of June 30, 2018, Reliant Bancorp had approximately $1.7 billion in total assets, approximately $1.1 billion in loans and approximately $1.3 billion in deposits. For additional information, locations and hours of operation, please visit their website at www.reliantbank.com.
Forward Looking Statements
All statements, other than statements of historical fact, included in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the benefits to Reliant Bancorp of the Community First merger, Reliant Bancorp’s future financial and operating results (including the anticipated impact of the transaction on the combined company’s earnings per share and tangible book value) and Reliant Bancorp’s plans, objectives and intentions.
All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Reliant Bancorp to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: (1) the effect of interest rate increases on the cost of deposits; (2) unanticipated weakness in loan demand or loan pricing; (3) greater than anticipated adverse conditions in the national or local economies in which we operate, including Middle Tennessee; (4) our ability to successfully integrate Community First’s business and operations with that of Reliant Bank; (5) lack of strategic growth opportunities or our failure to execute on those opportunities; (6) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (7) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits; (8) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Reliant Bancorp’s results, including as a result of compression to net interest margin; (9) our ability to effectively manage problem credits; (10) our ability to successfully implement efficiency initiatives on time and in amounts projected; (11) our ability to successfully develop and market new products and technology; (12) the vulnerability of Reliant Bank’s network and online banking portals, and the systems of parties with whom we contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches; and (13) changes in laws or regulations. Additional factors which could affect the forward-looking statements can be found in Reliant Bancorp’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. Reliant Bancorp believes the forward-looking statements contained herein are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Reliant Bancorp disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.
RELIANT BANCORP, INC. | ||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
June 30, 2018, March 31, 2018 AND June 30, 2017 | ||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
ASSETS | June 30, 2018 | March 31, 2018 | June 30, 2017 | |||||||||||||
Cash and due from banks | $ | 32,321 | $ | 51,285 | $ | 26,551 | ||||||||||
Federal funds sold | 381 | 67 | — | |||||||||||||
Total cash and cash equivalents | 32,702 | 51,352 | 26,551 | |||||||||||||
Securities available for sale | 308,069 | 290,012 | 184,789 | |||||||||||||
Loans, net of unearned income | 1,142,459 | 1,105,677 | 719,834 | |||||||||||||
Allowance for loan losses | (10,169 | ) | (9,731 | ) | (9,385 | ) | ||||||||||
Loans, net | 1,132,290 | 1,095,946 | 710,449 | |||||||||||||
Mortgage loans held for sale, net | 31,163 | 24,969 | 12,031 | |||||||||||||
Accrued interest receivable | 7,474 | 7,117 | 4,298 | |||||||||||||
Premises and equipment, net | 19,955 | 19,458 | 9,721 | |||||||||||||
Restricted equity securities, at cost | 11,677 | 9,500 | 7,155 | |||||||||||||
Other real estate, net | 2,060 | 1,650 | — | |||||||||||||
Cash surrender value of life insurance contracts | 44,927 | 44,630 | 29,203 | |||||||||||||
Deferred tax assets, net | 7,913 | 7,681 | 2,498 | |||||||||||||
Goodwill | 43,627 | 43,464 | 11,404 | |||||||||||||
Core deposit intangibles | 8,693 | 8,931 | 1,404 | |||||||||||||
Other assets | 9,108 | 6,915 | 4,447 | |||||||||||||
TOTAL ASSETS | $ | 1,659,658 | $ | 1,611,625 | $ | 1,003,950 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES | ||||||||||||||||
Deposits | ||||||||||||||||
Demand | $ | 225,360 | $ | 228,121 | $ | 136,467 | ||||||||||
Interest-bearing demand | 140,201 | 150,188 | 84,644 | |||||||||||||
Savings and money market deposit accounts | 352,724 | 360,134 | 210,635 | |||||||||||||
Time | 615,990 | 610,942 | 408,268 | |||||||||||||
Total deposits | 1,334,275 | 1,349,385 | 840,014 | |||||||||||||
Accrued interest payable | 801 | 814 | 167 | |||||||||||||
Subordinated debentures | 11,562 | 11,542 | — | |||||||||||||
Federal Home Loan Bank advances | 102,874 | 42,061 | 44,910 | |||||||||||||
Dividends payable | 919 | 918 | 941 | |||||||||||||
Other liabilities | 6,887 | 5,954 | 5,329 | |||||||||||||
TOTAL LIABILITIES | 1,457,318 | 1,410,674 | 891,361 | |||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date | — | — | — | |||||||||||||
Common stock, $1 par value; 30,000,000 shares authorized; 11,482,965, 11,479,608 and 7,839,562 shares issued and outstanding at June 30, 2018, March 31, 2018, and June 30, 2017, respectively | 11,483 | 11,480 | 7,840 | |||||||||||||
Additional paid-in capital | 172,686 | 172,538 | 89,746 | |||||||||||||
Retained earnings | 21,090 | 19,870 | 15,516 | |||||||||||||
Accumulated other comprehensive loss | (2,919 | ) | (2,937 | ) | (513 | ) | ||||||||||
TOTAL STOCKHOLDERS’ EQUITY | 202,340 | 200,951 | 112,589 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,659,658 | $ | 1,611,625 | $ | 1,003,950 | ||||||||||
RELIANT BANCORP, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE PERIODS INDICATED | |||||||||||||||||||||
(Dollar Amounts in Thousands, Except Per Share Amounts) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||
Interest and fees on loans | $ | 14,066 | $ | 13,558 | $ | 8,333 | $ | 27,624 | $ | 16,115 | |||||||||||
Interest and fees on loans held for sale | 326 | 481 | 115 | 807 | 209 | ||||||||||||||||
Interest on investment securities, taxable | 453 | 507 | 186 | 960 | 335 | ||||||||||||||||
Interest on investment securities, nontaxable | 1,708 | 1,504 | 946 | 3,212 | 1,774 | ||||||||||||||||
Federal funds sold and other | 277 | 312 | 124 | 589 | 244 | ||||||||||||||||
TOTAL INTEREST INCOME | 16,830 | 16,362 | 9,704 | 33,192 | 18,677 | ||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand | 84 | 77 | 46 | 161 | 89 | ||||||||||||||||
Savings and money market | 574 | 478 | 200 | 1,052 | 350 | ||||||||||||||||
Time | 2,199 | 1,996 | 853 | 4,195 | 1,546 | ||||||||||||||||
Federal Home Loan Bank advances and other | 397 | 272 | 102 | 669 | 218 | ||||||||||||||||
Subordinated debentures | 172 | 157 | — | 329 | — | ||||||||||||||||
TOTAL INTEREST EXPENSE | 3,426 | 2,980 | 1,201 | 6,406 | 2,203 | ||||||||||||||||
NET INTEREST INCOME | 13,404 | 13,382 | 8,503 | 26,786 | 16,474 | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 300 | 137 | 245 | 437 | 655 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 13,104 | 13,245 | 8,258 | 26,349 | 15,819 | ||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||
Service charges on deposit accounts | 900 | 771 | 317 | 1,671 | 627 | ||||||||||||||||
Gains on mortgage loans sold, net | 957 | 1,705 | 638 | 2,662 | 1,180 | ||||||||||||||||
Gain on securities transactions, net | 25 | — | 23 | 25 | 59 | ||||||||||||||||
Gain on sale of other real estate | 20 | 89 | 1 | 109 | 25 | ||||||||||||||||
Other | 352 | 426 | 252 | 778 | 479 | ||||||||||||||||
TOTAL NONINTEREST INCOME | 2,254 | 2,991 | 1,231 | 5,245 | 2,370 | ||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||
Salaries and employee benefits | 6,613 | 6,954 | 4,485 | 13,567 | 8,754 | ||||||||||||||||
Occupancy | 1,210 | 1,229 | 870 | 2,439 | 1,632 | ||||||||||||||||
Information technology | 1,249 | 1,349 | 679 | 2,598 | 1,192 | ||||||||||||||||
Advertising and public relations | 141 | 89 | 48 | 230 | 123 | ||||||||||||||||
Audit, legal and consulting | 816 | 623 | 308 | 1,439 | 601 | ||||||||||||||||
Federal deposit insurance | 224 | 196 | 121 | 420 | 220 | ||||||||||||||||
Merger expenses | 2,483 | 177 | — | 2,660 | — | ||||||||||||||||
Other operating | 1,305 | 1,545 | 757 | 2,850 | 1,615 | ||||||||||||||||
TOTAL NONINTEREST EXPENSE | 14,041 | 12,162 | 7,268 | 26,203 | 14,137 | ||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,317 | 4,074 | 2,221 | 5,391 | 4,052 | ||||||||||||||||
INCOME TAX EXPENSE | 115 | 797 | 427 | 912 | 699 | ||||||||||||||||
CONSOLIDATED NET INCOME | 1,202 | 3,277 | 1,794 | 4,479 | 3,353 | ||||||||||||||||
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY | 937 | 464 | 393 | 1,401 | 892 | ||||||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 2,139 | $ | 3,741 | $ | 2,187 | $ | 5,880 | $ | 4,245 | |||||||||||
Basic net income attributable to common shareholders, per share | $ | 0.19 | $ | 0.33 | $ | 0.28 | $ | 0.52 | $ | 0.55 | |||||||||||
Diluted net income attributable to common shareholders, per share | $ | 0.19 | $ | 0.33 | $ | 0.28 | $ | 0.51 | $ | 0.54 | |||||||||||
RELIANT BANCORP, INC. | ||||||||||||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||||||||||||
FOR THE PERIODS INDICATED | ||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Retail Banking | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
Net interest income | $ | 13,190 | $ | 13,044 | $ | 8,405 | $ | 26,234 | $ | 16,300 | ||||||||||||||||
Provision for loan losses | 300 | 137 | 245 | 437 | 655 | |||||||||||||||||||||
Noninterest income | 1,299 | 1,288 | 594 | 2,587 | 1,188 | |||||||||||||||||||||
Noninterest expense (excluding merger expenses) | 9,389 | 9,451 | 6,115 | 18,840 | 11,833 | |||||||||||||||||||||
Merger expense | 2,483 | 177 | — | 2,660 | — | |||||||||||||||||||||
Income before provision for income taxes | 2,317 | 4,567 | 2,639 | 6,884 | 5,000 | |||||||||||||||||||||
Income tax expense | 178 | 826 | 452 | 1,004 | 755 | |||||||||||||||||||||
Net income attributable to common shareholders | $ | 2,139 | $ | 3,741 | $ | 2,187 | $ | 5,880 | $ | 4,245 | ||||||||||||||||
Residential Mortgage Banking | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
Net interest income | $ | 214 | $ | 338 | $ | 98 | $ | 552 | $ | 174 | ||||||||||||||||
Provision for loan losses | — | — | — | — | — | |||||||||||||||||||||
Noninterest income | 955 | 1,703 | 637 | 2,658 | 1,182 | |||||||||||||||||||||
Noninterest expense | 2,169 | 2,534 | 1,153 | 4,703 | 2,304 | |||||||||||||||||||||
Loss before provision for income taxes | (1,000 | ) | (493 | ) | (418 | ) | (1,493 | ) | (948 | ) | ||||||||||||||||
Income tax benefit | (63 | ) | (29 | ) | (25 | ) | (92 | ) | (56 | ) | ||||||||||||||||
Net loss | (937 | ) | (464 | ) | (393 | ) | (1,401 | ) | (892 | ) | ||||||||||||||||
Noncontrolling interest in net loss of subsidiary | 937 | 464 | 393 | 1,401 | 892 | |||||||||||||||||||||
Net income attributable to common shareholders | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
The above financial information is presented, net of intercompany eliminations.
RELIANT BANCORP, INC. | ||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | ||||||||||||||||
AT OR FOR THE THREE MONTHS ENDED | ||||||||||||||||
(Dollar Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||
Per Common Share Data | ||||||||||||||||
Net income attributable to shareholders, per share | ||||||||||||||||
Basic | $ | 0.19 | $ | 0.33 | $ | 0.28 | ||||||||||
Diluted | $ | 0.19 | $ | 0.33 | $ | 0.28 | ||||||||||
Book value per common share | $ | 17.62 | $ | 17.51 | $ | 14.36 | ||||||||||
Tangible book value per common share | $ | 13.06 | $ | 12.94 | $ | 12.73 | ||||||||||
Basic weighted average common shares | 11,396,829 | 11,385,323 | 7,775,179 | |||||||||||||
Diluted weighted average common shares | 11,495,233 | 11,477,934 | 7,873,126 | |||||||||||||
Common shares outstanding at period end | 11,482,965 | 11,479,608 | 7,839,562 | |||||||||||||
Selected Balance Sheet Data | ||||||||||||||||
Tangible common equity (TCE) ratio | 9.33 | % | 9.53 | % | 10.07 | % | ||||||||||
Average loans | $ | 1,119,884 | $ | 1,088,166 | $ | 703,596 | ||||||||||
Average earning assets (1) | 1,492,007 | 1,478,465 | 919,463 | |||||||||||||
Average total assets | 1,629,714 | 1,613,086 | 972,112 | |||||||||||||
Average stockholders' equity | 202,305 | 201,433 | 109,637 | |||||||||||||
Selected Asset Quality Measures | ||||||||||||||||
Nonaccrual loans | $ | 4,360 | $ | 6,427 | $ | 5,856 | ||||||||||
90+ days past due still accruing | 51 | 4 | 251 | |||||||||||||
Total nonperforming loans | 4,411 | 6,431 | 6,107 | |||||||||||||
Total nonperforming assets (2) | 6,471 | 8,081 | 6,107 | |||||||||||||
Net charge offs (recoveries) | (139 | ) | 138 | (49 | ) | |||||||||||
Nonperforming loans to total loans | 0.39 | % | 0.58 | % | 0.85 | % | ||||||||||
Nonperforming assets to total assets | 0.39 | % | 0.50 | % | 0.61 | % | ||||||||||
Nonperforming assets to total loans and other real estate | 0.57 | % | 0.73 | % | 0.85 | % | ||||||||||
Allowance for loan losses to total loans | 0.89 | % | 0.88 | % | 1.30 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 230.54 | % | 151.31 | % | 153.68 | % | ||||||||||
Net charge offs (recoveries) to average loans (3) | (0.05 | )% | 0.05 | % | (0.03 | )% | ||||||||||
Capital Ratios (Bank Subsidiary Only)(5) | ||||||||||||||||
Tier 1 leverage | 9.98 | % | 10.25 | % | 10.29 | % | ||||||||||
Common equity tier 1 | 12.14 | % | 12.85 | % | 12.08 | % | ||||||||||
Total risk-based capital | 12.93 | % | 13.65 | % | 13.23 | % | ||||||||||
Selected Performance Ratios (3) (4) | ||||||||||||||||
Return on average assets (ROA) | 0.53 | % | 0.93 | % | 0.90 | % | ||||||||||
Return on average stockholders' equity (ROE) | 4.23 | % | 7.43 | % | 7.98 | % | ||||||||||
Return on tangible common equity (ROTCE) | 5.71 | % | 10.04 | % | 9.03 | % | ||||||||||
Net interest margin | 3.74 | % | 3.79 | % | 4.01 | % | ||||||||||
(1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, investment securities and restricted equity securities.
(2) Nonperforming assets consist of nonperforming loans (excluding troubled debt restructurings) and other real estate.
(3) Data has been annualized.
(4) Return on average assets is defined as net income attributable to common shareholders divided by average total assets; return on average stockholders’ equity is defined as net income attributable to common shareholders divided by average stockholders’ equity; net interest margin is defined as net interest income calculated on a tax-equivalent basis divided by average earning assets.
(5) Current quarter capital ratios are estimated.
RELIANT BANCORP, INC.
YIELD TABLES
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands)
(Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:
Three Months Ended June 30, | Three Months Ended March | Three Months Ended June | |||||||||||||||||||||||||||||||||||
Average | Rates / | Interest | Average | Rates / | Interest | Average | Rates / | Interest | |||||||||||||||||||||||||||||
Interest earning assets | |||||||||||||||||||||||||||||||||||||
Loans | $ | 1,119,884 | 4.81 | $ | 13,393 | $ | 1,088,166 | 4.81 | $ | 12,872 | $ | 703,596 | 4.54 | $ | 7,801 | ||||||||||||||||||||||
Loan fees | — | 0.24 | 673 | — | 0.26 | 686 | — | 0.30 | 532 | ||||||||||||||||||||||||||||
Loans with fees | 1,119,884 | 5.05 | 14,066 | 1,088,166 | 5.07 | 13,558 | 703,596 | 4.84 | 8,333 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 24,611 | 5.31 | 326 | 39,235 | 4.97 | 481 | 11,117 | 4.15 | 115 | ||||||||||||||||||||||||||||
Deposits with banks | 36,550 | 1.21 | 110 | 50,206 | 1.34 | 166 | 15,988 | 0.63 | 25 | ||||||||||||||||||||||||||||
Investment securities - taxable | 67,647 | 2.69 | 453 | 72,678 | 2.83 | 507 | 35,742 | 2.09 | 186 | ||||||||||||||||||||||||||||
Investment securities - tax-exempt | 231,874 | 3.75 | 1,708 | 218,246 | 3.57 | 1,504 | 144,969 | 4.08 | 946 | ||||||||||||||||||||||||||||
Fed funds sold and other | 11,441 | 5.85 | 167 | 9,934 | 5.96 | 146 | 8,051 | 4.93 | 99 | ||||||||||||||||||||||||||||
Total earning assets | 1,492,007 | 4.66 | 16,830 | 1,478,465 | 4.61 | 16,362 | 919,463 | 4.54 | 9,704 | ||||||||||||||||||||||||||||
Nonearning assets | 137,707 | 134,621 | 52,649 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 1,629,714 | $ | 1,613,086 | $ | 972,112 | |||||||||||||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 143,811 | 0.23 | $ | 84 | $ | 154,318 | 0.20 | $ | 77 | $ | 88,514 | 0.21 | $ | 46 | ||||||||||||||||||||||
Savings and money market | 357,475 | 0.64 | 574 | 344,641 | 0.56 | 478 | 210,576 | 0.38 | 200 | ||||||||||||||||||||||||||||
Time deposits - retail | 517,209 | 1.43 | 1,848 | 516,424 | 1.31 | 1,664 | 305,935 | 0.84 | 644 | ||||||||||||||||||||||||||||
Time deposits - wholesale | 92,197 | 1.53 | 351 | 95,743 | 1.41 | 332 | 89,117 | 0.94 | 209 | ||||||||||||||||||||||||||||
Total interest bearing deposits | 1,110,691 | 1.03 | 2,857 | 1,111,126 | 0.93 | 2,551 | 694,142 | 0.64 | 1,099 | ||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 79,520 | 2.00 | 397 | 70,172 | 1.57 | 272 | 30,510 | 1.34 | 102 | ||||||||||||||||||||||||||||
Subordinated debt | 11,556 | 5.97 | 172 | 11,536 | 5.52 | 157 | — | — | — | ||||||||||||||||||||||||||||
Total borrowed funds | 91,076 | 2.51 | 569 | 81,708 | 2.13 | 429 | 30,510 | 1.34 | 102 | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,201,768 | 1.14 | 3,426 | 1,192,834 | 1.01 | 2,980 | 724,652 | 0.66 | 1,201 | ||||||||||||||||||||||||||||
Net interest rate spread (%) / Net interest income ($) | 3.52 | 13,404 | 3.60 | 13,382 | 3.88 | 8,503 | |||||||||||||||||||||||||||||||
Non-interest bearing deposits | 219,860 | (0.17 | ) | 212,614 | (0.15 | ) | 134,724 | (0.10 | ) | ||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 5,781 | 6,205 | 3,099 | ||||||||||||||||||||||||||||||||||
Stockholder's equity | 202,305 | 201,433 | 109,637 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,629,714 | $ | 1,613,086 | $ | 972,112 | |||||||||||||||||||||||||||||||
Cost of funds | 0.97 | 0.86 | 0.56 | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.74 | 3.79 | 4.01 | ||||||||||||||||||||||||||||||||||
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
RELIANT BANCORP, INC.
YIELD TABLES
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands)
(Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:
Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | ||||||||||||||||||||||||
Average | Rates / | Interest | Average | Rates / | Interest | ||||||||||||||||||||
Interest earning assets | |||||||||||||||||||||||||
Loans | $ | 1,104,025 | 4.81 | $ | 26,268 | $ | 688,316 | 4.51 | $ | 15,064 | |||||||||||||||
Loan fees | — | 0.25 | 1356 | — | 0.31 | 1051 | |||||||||||||||||||
Loans with fees | 1,104,025 | 5.06 | 27,624 | 688,316 | 4.82 | 16,115 | |||||||||||||||||||
Mortgage loans held for sale | 31,923 | 5.10 | 807 | 10,798 | 3.90 | 209 | |||||||||||||||||||
Deposits with banks | 43,378 | 1.28 | 276 | 15,540 | 0.64 | 49 | |||||||||||||||||||
Investment securities - taxable | 70,162 | 2.76 | 960 | 33,418 | 2.02 | 335 | |||||||||||||||||||
Investment securities - tax-exempt | 225,060 | 3.66 | 3,212 | 139,259 | 4.02 | 1,774 | |||||||||||||||||||
Fed funds sold and other | 10,688 | 5.91 | 313 | 7,911 | 4.97 | 195 | |||||||||||||||||||
Total earning assets | 1,485,236 | 4.63 | 33,192 | 895,242 | 4.51 | 18,677 | |||||||||||||||||||
Nonearning assets | 136,163 | 53,955 | |||||||||||||||||||||||
Total assets | $ | 1,621,399 | $ | 949,197 | |||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||||||
Interest bearing demand | $ | 149,065 | 0.22 | $ | 161 | $ | 85,647 | 0.21 | $ | 89 | |||||||||||||||
Savings and money market | 351,058 | 0.60 | 1,052 | 197,724 | 0.36 | 350 | |||||||||||||||||||
Time deposits - retail | 516,816 | 1.37 | 3,512 | 298,764 | 0.78 | 1,150 | |||||||||||||||||||
Time deposits - wholesale | 93,970 | 1.47 | 683 | 85,546 | 0.93 | 396 | |||||||||||||||||||
Total interest bearing deposits | 1,110,909 | 0.98 | 5,408 | 667,681 | 0.60 | 1,985 | |||||||||||||||||||
Federal Home Loan Bank advances and other | 74,846 | 1.80 | 669 | 38,243 | 1.15 | 218 | |||||||||||||||||||
Subordinated debt | 11,546 | 5.75 | 329 | 0 | — | — | |||||||||||||||||||
Total borrowed funds | 86,392 | 2.33 | 998 | 38,243 | 1.15 | 218 | |||||||||||||||||||
Total interest-bearing liabilities | 1,197,301 | 1.08 | 6,406 | 705,924 | 0.63 | 2,203 | |||||||||||||||||||
Net interest rate spread (%) / Net interest income ($) | 3.55 | 26,786 | 3.88 | 16,474 | |||||||||||||||||||||
Non-interest bearing deposits | 216,237 | (0.18 | ) | 132,054 | (0.10 | ) | |||||||||||||||||||
Other non-interest bearing liabilities | 5,992 | 3,037 | |||||||||||||||||||||||
Stockholder's equity | 201,869 | 108,182 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,621,399 | $ | 949,197 | |||||||||||||||||||||
Cost of funds | 0.90 | 0.53 | |||||||||||||||||||||||
Net interest margin | 3.76 | 4.01 | |||||||||||||||||||||||
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.
RELIANT BANCORP, INC. | ||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||
FOR THE PERIODS INDICATED | ||||||||||||||||||||||||||
(Dollar Amounts in Thousands, Except Per Share Amounts) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | March 31, 2018 | June 30, 2017 | June 30, | June 30, | ||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||
Adjusted net interest margin (1) | ||||||||||||||||||||||||||
Net interest income | $ | 13,404 | $ | 13,382 | $ | 8,503 | $ | 26,786 | $ | 16,474 | ||||||||||||||||
Purchase accounting adjustments | (326 | ) | (508 | ) | (125 | ) | (834 | ) | (243 | ) | ||||||||||||||||
Adjusted net interest income | $ | 13,078 | $ | 12,874 | $ | 8,378 | $ | 25,952 | $ | 16,231 | ||||||||||||||||
Adjusted net interest margin | 3.65 | % | 3.65 | % | 3.95 | % | 3.65 | % | 3.96 | % | ||||||||||||||||
Adjusted net income attributable to common shareholders and Related Impact on ROA, ROE, and Earnings per Diluted Share (1) | ||||||||||||||||||||||||||
Net income attributable to common shareholders | $ | 2,139 | $ | 3,741 | $ | 2,187 | $ | 5,880 | $ | 4,245 | ||||||||||||||||
Purchase accounting adjustments | (73 | ) | (293 | ) | (28 | ) | (366 | ) | (53 | ) | ||||||||||||||||
Merger expenses | 2,483 | 177 | — | 2,660 | — | |||||||||||||||||||||
Pre-tax adjustments to net income | 2,410 | (116 | ) | (28 | ) | 2,294 | (53 | ) | ||||||||||||||||||
Tax effect of adjustments to net income | 632 | (53 | ) | (11 | ) | 580 | (20 | ) | ||||||||||||||||||
After tax adjustments to net income | $ | 1,778 | $ | (63 | ) | $ | (17 | ) | $ | 1,714 | $ | (33 | ) | |||||||||||||
Adjusted net income attributable to common shareholders | $ | 3,917 | $ | 3,678 | $ | 2,170 | $ | 7,594 | $ | 4,212 | ||||||||||||||||
Adjusted return on average assets | 0.96 | % | 0.91 | % | 0.89 | % | 0.94 | % | 0.89 | % | ||||||||||||||||
Adjusted return on average stockholders' equity | 7.75 | % | 7.30 | % | 7.92 | % | 7.52 | % | 7.79 | % | ||||||||||||||||
Adjusted return on tangible common equity | 10.45 | % | 7.86 | % | 9.87 | % | 10.16 | % | 8.83 | % | ||||||||||||||||
Adjusted net income attributable to common shareholders, per diluted share | $ | 0.34 | $ | 0.32 | $ | 0.28 | $ | 0.66 | $ | 0.54 | ||||||||||||||||
Efficiency ratio (subsidiary bank only excluding mortgage segment)(1) | ||||||||||||||||||||||||||
Non-interest expense | $ | 8,867 | $ | 8,980 | $ | 5,780 | $ | 17,847 | $ | 11,167 | ||||||||||||||||
Net interest income | 13,190 | 13,044 | 8,405 | 26,234 | 16,301 | |||||||||||||||||||||
Tax equivalent adjustment for tax exempt interest income | 490 | 445 | 530 | 935 | 1,004 | |||||||||||||||||||||
Non-interest income | 1,299 | 1,288 | 594 | 2,587 | 1,188 | |||||||||||||||||||||
Less gain on sale of other real estate | (20 | ) | (89 | ) | (1 | ) | (109 | ) | (25 | ) | ||||||||||||||||
Less gain on sale of securities | (25 | ) | — | (23 | ) | (25 | ) | (59 | ) | |||||||||||||||||
Adjusted operating income | $ | 14,934 | $ | 14,688 | $ | 9,505 | $ | 29,622 | $ | 18,409 | ||||||||||||||||
Efficiency Ratio | 59.37 | % | 61.14 | % | 60.81 | % | 60.25 | % | 60.66 | % | ||||||||||||||||
(1) Not a recognized measure under generally accepted accounting principles (GAAP).
CONTACT:
Reliant Bancorp, Inc.
DeVan Ard, 615-221-2020
Chairman, President and Chief Executive Officer