Exhibit 99.1
National Commerce Corporation AnnouncesFourth Quarter and Fiscal Year End 2016 Earnings
BIRMINGHAM, AL (January 24, 2017) (GLOBE NEWSWIRE) -- National Commerce Corporation (Nasdaq: NCOM) (the “Company” or “NCC”), the parent company of National Bank of Commerce, today reported fourth quarter 2016 net income to common shareholders of $4.9 million, compared to $2.9 million for the fourth quarter of 2015. Diluted net earnings per share were $0.44 in the fourth quarter of 2016, compared to $0.43 in the third quarter of 2016 and $0.28 in the fourth quarter of 2015. For the twelve months ended December 31, 2016, NCC earned $17.9 million, or $1.61 in diluted earnings per share, up from $9.6 million, or $1.02 per diluted share, for the year ended December 31, 2015.
“We are pleased to report a good year of growth in the company in 2016, along with expansion in our profitability,” said John H. Holcomb, III, Chairman and Chief Executive Officer of the Company. “Our fourth quarter return on average assets of 1.05% brought the year’s total to 1.00%, and our diluted earnings per share of $1.61 for the year represents a 58% increase over 2015 levels. We are also pleased with our asset quality performance, though, as always, we can never consider ourselves satisfied in this very important area of our business.”
“In 2017, we look forward to building on the foundation of 2016 and prior years, and to doing so with our new colleagues from Private Bank of Buckhead, who joined us on January 1,” continued Holcomb. “Our future success in continuing to create shareowner value is dependent upon our adherence to our core values, with a focus on asset quality and risk management, growth, candor, accountability, and a leadership culture with an appropriate sense of humility.”
Several important measures from the 2016 fourth quarter and full year are as follows:
| | ● | Net Interest Margin (taxable equivalent) of 3.99% for the fourth quarter of 2016 and 4.15% for the year ended December 31, 2016. The fourth quarter 2016 margin decreased 0.19% compared to 4.18% reported for the third quarter of 2016, and was 0.07% below the 2015 fourth quarter’s 4.06%. For the year ended December 31, 2016, the margin increased by 0.02%, compared to the year ended December 31, 2015. |
| | ● | Return on Average Assets (“ROAA”) of 1.05% for the fourth quarter of 2016, compared to 0.72% for the fourth quarter of 2015. For the year, ROAA grew to 1.0%, compared to 0.72% in 2015. |
| | ● | Return on Average Equity (“ROAE”) of 8.33% for the fourth quarter of 2016, compared to 5.76% for the fourth quarter of 2015. For the year, ROAE was 7.89%, compared to 5.55% in 2015. |
| | ● | Return on Average Tangible Common Equity of 10.78% for the fourth quarter of 2016 and 10.32% for the year ended December 31, 2016, compared to 7.48% for the fourth quarter of 2015 and 6.96% for the year ended December 31, 2015. |
| | ● | Fourth quarter and full year 2016 loan growth (excluding mortgage loans held-for-sale) of $73.1 million and $166.1 million, respectively; non-acquired loans grew $66.5 million during the fourth quarter of 2016 and $205.7 million for the year ended December 31, 2016. Growth in factored receivables accounted for $13.8 million of the fourth quarter growth and $16.3 million of the full year growth. |
| | ● | Increase in deposits of $167.8 million during the 2016 fourth quarter and $153.3 million for the year ended December 31, 2016. |
| | ● | $76.0 million in 2016 fourth quarter mortgage production, compared to $58.9 million for the fourth quarter of 2015. For the year ended December 31, 2016, mortgage production volume totaled $322.9 million, up 14.6% from the $281.7 million in mortgage production for the year ended December 31, 2015. |
| | ● | $187.7 million in 2016 fourth quarter purchased volume in the factoring division, compared to $172.1 million for the fourth quarter of 2015. Purchase volume of $705.9 million for the full year was down 1.8% compared to the full year of purchase volume of $718.5 million in 2015. |
| | ● | Increase in non-acquired non-performing assets to $2.7 million, from $2.4 million at September 30, 2016. |
| | ● | Annualized net charge-offs of 0.08% of average loans for the fourth quarter of 2016 and 0.07% for the year ended December 31, 2016. |
| | ● | Provision for loan losses of $0.4 million during the fourth quarter of 2016, compared to $0.6 million in the fourth quarter of 2015. Provision for loan losses for the year ended December 31, 2016 totaled $3.2 million, a $2.1 million increase over $1.1 million for the year ended December 31, 2015. |
| | ● | Ending tangible book value per share of $16.82. |
| | ● | Ending book value per share of $21.68. |
The Company will host a live audio webcast conference call beginning at 8:30 a.m. Central Time on January 25, 2017 to discuss earnings and operating results for the 2016 fourth quarter and full year. Investors may call in (toll free) by dialing (844) 296-8205 (conference ID 48550731). A replay of the conference call will be available until January 27, 2017 and can be accessed by dialing (855) 859-2056.
Investors who plan to participate in the live webcast of the conference call should access the webcast by visiting www.nationalbankofcommerce.com, and then clicking on the “Investor Relations” link under the “Learn More” tab located on that webpage. A replay of the webcast will be available on the website for one year. A copy of the news release will also be available at the same location.
Use of Non-GAAP Financial Measures
Some of the financial measures presented in this press release and included in the accompanying unaudited financial statements are not measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include tangible common equity, return on average tangible common equity, tangible book value per share, allowance for loan losses to nonacquired loans, efficiency ratio and operating efficiency ratio. The Company’s management uses the non-GAAP financial measures set forth below in its analysis of the Company’s performance.
| | ● | “Tangible common equity” is total shareholders’ equity less goodwill, other intangible assets and minority interest not included in intangible assets. |
| | ● | “Average tangible common equity” is defined as the average of tangible common equity for the applicable period. |
| | ● | “Return on average tangible common equity,” or ROATCE, is defined as net income available to common shareholders divided by average tangible common equity. |
| | ● | “Tangible book value per share” is defined as tangible common equity divided by total common shares outstanding. This measure is important to investors interested in changes from period to period in book value per share exclusive of changes in intangible assets. |
The Company’s management believes these above measures, each of which utilizes the concept of tangible common equity rather than total common equity, provide useful information to management and investors because they eliminate the impact of goodwill and other intangible assets created in an acquisition. These measures are commonly used by investors when assessing financial institutions.
| | ● | “Allowance for loan losses to nonacquired loans” is defined as the total allowance for loan losses, less the allowance for loan losses attributable to factored receivables, divided by nonacquired loans held for investment, excluding factored receivables at the end of the period. This measure is important to investors because it disaggregates the acquired and non-acquired loans and provides a measure that may be more comparable to a bank that has no acquired loans. This measure also excludes the allowance and factored receivable balances at our subsidiary, Corporate Billing, LLC, which is helpful to investors because of the unique nature of that business and the rapid turnover of those receivables, and provides a measure that is more comparable to a bank that does not have a receivables factoring business. |
| | ● | “Efficiency ratio” is defined as noninterest expense divided by operating revenue (which is equal to net interest income plus noninterest income), excluding one-time gains and losses on sales of securities. This measure is important to investors looking for a measure of efficiency in productivity based on the amount of revenue generated for each dollar spent. |
| | ● | “Operating efficiency ratio” is defined as noninterest expense divided by operating revenue, excluding one-time gains and losses on sales of securities and one-time gains and expenses related to merger and acquisition activities. This measure is important to investors looking for a measure of efficiency in productivity based on the amount of revenue generated for each dollar spent. |
The Company’s management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to NCC’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, NCC acknowledges that the non-GAAP financial measures have a number of limitations. As such, NCC cautions readers that these disclosures should not be viewed as a substitute for results determined in accordance with GAAP, and that these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use. These non-GAAP financial measures exclude various items detailed in the attached “Non-GAAP Reconciliation.”
About National Commerce Corporation
National Commerce Corporation (Nasdaq: NCOM), a Delaware corporation, is a financial holding company headquartered in Birmingham, Alabama. Substantially all of the operations of National Commerce Corporation are conducted through the company’s wholly owned subsidiary, National Bank of Commerce. National Bank of Commerce currently operates seven full-service banking offices in Alabama, ten full-service banking offices in central and northeast Florida (including under the trade names United Legacy Bank and Reunion Bank of Florida) and two full-service banking offices in Atlanta, Georgia (including under the trade names Private Bank of Buckhead, Private Bank of Decatur and PrivatePlus Mortgage). National Bank of Commerce provides a broad array of financial services for commercial and consumer customers.
Additionally, National Bank of Commerce owns a majority stake in Corporate Billing, LLC, a transaction-based finance company headquartered in Decatur, Alabama that provides factoring, invoicing, collection and accounts receivable management services to transportation companies and automotive parts and service providers throughout the United States and parts of Canada.
National Commerce Corporation files periodic reports with the U.S. Securities and Exchange Commission (the “SEC”). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.nationalbankofcommerce.com. More information about National Commerce Corporation and National Bank of Commerce may be obtained at www.nationalbankofcommerce.com.
Forward-Looking Statements
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements for which NCC claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in NCC’s future filings with the SEC, in press releases and in oral and written statements made by NCC or with NCC’s approval that are not statements of historical fact and that constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of NCC’s plans, objectives and expectations or those of its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to various risks and uncertainties, including those risks and uncertainties described under the heading “Risk Factors” in NCC’s Annual Report on Form 10-K for the year ended December 31, 2015 and described in any subsequent reports that NCC has filed with the SEC. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, and these statements should not be relied upon as predictions of future events. NCC undertakes no obligation to update any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. In that respect, NCC cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
Contact:
National Commerce Corporation
William E. Matthews, V
Vice Chairman and Chief Financial Officer
(205) 313-8122
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
| | | For the Three Months Ended | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
Earnings Summary | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 19,032 | | | $ | 18,836 | | | $ | 18,382 | | | $ | 18,313 | | | $ | 16,488 | |
Interest expense | | | 2,042 | | | | 1,959 | | | | 1,730 | | | | 1,650 | | | | 1,507 | |
Net interest income | | | 16,990 | | | | 16,877 | | | | 16,652 | | | | 16,663 | | | | 14,981 | |
Provision for loan losses | | | 441 | | | | 373 | | | | 901 | | | | 1,533 | | | | 631 | |
Other noninterest income (1) | | | 3,472 | | | | 4,002 | | | | 3,357 | | | | 3,125 | | | | 2,136 | |
Merger/conversion-related expenses | | | 169 | | | | 160 | | | | 12 | | | | 138 | | | | 395 | |
Other noninterest expense (2) | | | 11,971 | | | | 12,472 | | | | 12,242 | | | | 11,915 | | | | 11,049 | |
Income before income taxes | | | 7,881 | | | | 7,874 | | | | 6,854 | | | | 6,202 | | | | 5,042 | |
Income tax expense | | | 2,600 | | | | 2,639 | | | | 2,072 | | | | 2,083 | | | | 1,667 | |
Net income before minority interest | | | 5,281 | | | | 5,235 | | | | 4,782 | | | | 4,119 | | | | 3,375 | |
Net income attributable to minority interest | | | 374 | | | | 422 | | | | 428 | | | | 340 | | | | 437 | |
Net income to common shareholders | | $ | 4,907 | | | $ | 4,813 | | | $ | 4,354 | | | $ | 3,779 | | | $ | 2,938 | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average common and diluted shares outstanding | | | | | | | | | | | | | | | | | | | | |
Basic | | | 10,930,309 | | | | 10,890,860 | | | | 10,866,788 | | | | 10,855,871 | | | | 10,345,146 | |
Diluted | | | 11,171,583 | | | | 11,115,134 | | | | 11,067,972 | | | | 11,039,208 | | | | 10,552,871 | |
| | | | | | | | | | | | | | | | | | | | | |
Net earnings per common share | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.45 | | | $ | 0.44 | | | $ | 0.40 | | | $ | 0.35 | | | $ | 0.28 | |
Diluted | | $ | 0.44 | | | $ | 0.43 | | | $ | 0.39 | | | $ | 0.34 | | | $ | 0.28 | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Selected Performance Ratios | | | | | | | | | | | | | | | | | | | | |
Return on average assets (ROAA) (3) | | | 1.05 | % | | | 1.08 | % | | | 1.00 | % | | | 0.86 | % | | | 0.72 | % |
Return on average equity (ROAE) | | | 8.33 | | | | 8.36 | | | | 7.84 | | | | 6.95 | | | | 5.76 | |
Return on average tangible common equity(ROATCE) | | | 10.78 | | | | 10.90 | | | | 10.31 | | | | 9.21 | | | | 7.48 | |
Net interest margin - taxable equivalent | | | 3.99 | | | | 4.18 | | | | 4.23 | | | | 4.21 | | | | 4.06 | |
Efficiency ratio | | | 59.33 | | | | 60.50 | | | | 61.24 | | | | 60.91 | | | | 66.86 | |
Operating efficiency ratio (2) | | | 58.50 | | | | 59.73 | | | | 61.18 | | | | 60.21 | | | | 64.55 | |
Noninterest income / average assets (annualized) | | | 0.74 | | | | 0.90 | | | | 0.77 | | | | 0.71 | | | | 0.52 | |
Noninterest expense / average assets (annualized) | | | 2.60 | | | | 2.85 | | | | 2.83 | | | | 2.76 | | | | 2.80 | |
Yield on loans | | | 4.95 | | | | 5.08 | | | | 5.06 | | | | 5.17 | | | | 5.17 | |
Cost of total deposits | | | 0.40 | % | | | 0.40 | % | | | 0.40 | % | | | 0.42 | % | | | 0.40 | % |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Factoring Metrics | | | | | | | | | | | | | | | | | | | | |
Recourse purchased volume | | $ | 82,923 | | | $ | 71,872 | | | $ | 68,567 | | | $ | 66,554 | | | $ | 74,922 | |
Non-recourse purchased volume | | | 104,797 | | | | 100,486 | | | | 98,550 | | | | 112,196 | | | | 97,142 | |
Total purchased volume | | $ | 187,720 | | | $ | 172,358 | | | $ | 167,117 | | | $ | 178,750 | | | $ | 172,064 | |
Average turn (days) | | | 38.35 | | | | 38.13 | | | | 39.92 | | | | 38.16 | | | | 39.68 | |
Net charge-offs / total purchased volume | | | 0.12 | % | | | 0.05 | % | | | 0.07 | % | | | 0.27 | % | | | 0.12 | % |
Average discount rate | | | 1.67 | % | | | 1.70 | % | | | 1.69 | % | | | 1.72 | % | | | 1.73 | % |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Mortgage Metrics | | | | | | | | | | | | | | | | | | | | |
Total production ($) | | $ | 76,028 | | | $ | 91,613 | | | $ | 91,466 | | | $ | 63,802 | | | $ | 58,903 | |
Refinance (%) | | | 40.2 | % | | | 30.4 | % | | | 17.2 | % | | | 18.2 | % | | | 26.0 | % |
Purchases (%) | | | 59.8 | % | | | 69.6 | % | | | 82.8 | % | | | 81.8 | % | | | 74.0 | % |
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
| | | As of | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Balance Sheet Highlights | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 217,293 | | | $ | 122,920 | | | $ | 86,163 | | | $ | 123,853 | | | $ | 212,457 | |
Total investment securities | | | 99,709 | | | | 102,848 | | | | 89,495 | | | | 82,954 | | | | 80,863 | |
Mortgage loans held-for-sale | | | 15,373 | | | | 7,810 | | | | 19,468 | | | | 12,529 | | | | 15,020 | |
Acquired purchased credit-impaired loans | | | 9,507 | | | | 9,500 | | | | 10,382 | | | | 10,205 | | | | 10,443 | |
Acquired non-purchased credit-impaired loans | | | 315,867 | | | | 323,125 | | | | 346,685 | | | | 356,305 | | | | 370,872 | |
Nonacquired loans held for investment(4) | | | 1,076,209 | | | | 1,009,677 | | | | 978,836 | | | | 942,781 | | | | 870,471 | |
CBI loans (factoring receivables) | | | 83,901 | | | | 70,066 | | | | 70,673 | | | | 74,248 | | | | 67,628 | |
Total gross loans held for investment | | | 1,485,484 | | | | 1,412,368 | | | | 1,406,576 | | | | 1,383,539 | | | | 1,319,414 | |
Allowance for loan losses | | | 12,113 | | | | 11,950 | | | | 11,642 | | | | 10,927 | | | | 9,842 | |
Total intangibles | | | 52,768 | | | | 52,962 | | | | 53,154 | | | | 53,312 | | | | 53,474 | |
Total assets | | | 1,951,658 | | | | 1,779,278 | | | | 1,735,782 | | | | 1,735,940 | | | | 1,763,369 | |
Total deposits | | | 1,667,710 | | | | 1,499,879 | | | | 1,460,877 | | | | 1,498,197 | | | | 1,514,458 | |
FHLB and other borrowings | | | 7,000 | | | | 7,000 | | | | 7,000 | | | | 7,000 | | | | 22,000 | |
Subordinated debt | | | 24,500 | | | | 24,487 | | | | 24,540 | | | | - | | | | - | |
Total liabilities | | | 1,714,614 | | | | 1,547,105 | | | | 1,509,662 | | | | 1,514,840 | | | | 1,546,733 | |
Minority interest | | | 7,309 | | | | 7,357 | | | | 7,362 | | | | 7,275 | | | | 7,372 | |
Common stock | | | 109 | | | | 109 | | | | 109 | | | | 109 | | | | 108 | |
Total shareholders' equity | | | 237,044 | | | | 232,173 | | | | 226,120 | | | | 221,100 | | | | 216,636 | |
Tangible common equity | | $ | 183,901 | | | $ | 178,788 | | | $ | 172,538 | | | $ | 167,447 | | | $ | 162,724 | |
End of period common shares outstanding | | | 10,934,541 | | | | 10,920,423 | | | | 10,870,033 | | | | 10,861,487 | | | | 10,824,969 | |
| | | As of and For the Three Months Ended | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Asset Quality Analysis | | | | | | | | | | | | | | | | | | | | |
Nonacquired | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 69 | | | $ | 19 | | | $ | 248 | | | $ | 184 | | | $ | 187 | |
Other real estate and repossessed assets | | | 2,068 | | | | 2,068 | | | | 2,068 | | | | 2,792 | | | | 3,873 | |
Loans past due 90 days or more and still accruing | | | 581 | | | | 358 | | | | 406 | | | | 452 | | | | 252 | |
Total nonacquired nonperforming assets | | $ | 2,718 | | | $ | 2,445 | | | $ | 2,722 | | | $ | 3,428 | | | $ | 4,312 | |
| | | | | | | | | | | | | | | | | | | | | |
Acquired | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 2,768 | | | $ | 2,982 | | | $ | 3,099 | | | $ | 3,617 | | | $ | 3,508 | |
Other real estate and repossessed assets | | | - | | | | 92 | | | | 92 | | | | 92 | | | | 92 | |
Loans past due 90 days or more and still accruing | | | - | | | | - | | | | - | | | | - | | | | - | |
Total acquired nonperforming assets | | $ | 2,768 | | | $ | 3,074 | | | $ | 3,191 | | | $ | 3,709 | | | $ | 3,600 | |
| | | | | | | | | | | | | | | | | | | | | |
Selected asset quality ratios | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets / Assets | | | 0.28 | % | | | 0.31 | % | | | 0.34 | % | | | 0.41 | % | | | 0.45 | % |
Nonperforming assets / (Loans + OREO + repossessed assets) | | | 0.37 | | | | 0.39 | | | | 0.42 | | | | 0.51 | | | | 0.60 | |
Net charge-offs (recoveries) to average loans (annualized) | | | 0.08 | | | | 0.02 | | | | 0.05 | | | | 0.13 | | | | 0.06 | |
Allowance for loan losses to total loans | | | 0.82 | | | | 0.85 | | | | 0.83 | | | | 0.79 | | | | 0.75 | |
Nonacquired nonperforming assets / (Nonacquired loans +nonacquired OREO + nonacquired repossessed assets)(4) | | | 0.25 | | | | 0.24 | | | | 0.28 | | | | 0.36 | | | | 0.49 | |
Allowance for loan losses to nonacquired nonperformingloans | | | 1,863.54 | | | | 3,169.76 | | | | 1,780.12 | | | | 1,718.08 | | | | 2,241.91 | |
Allowance for loan losses to nonacquired loans (4) | | | 1.08 | % | | | 1.13 | % | | | 1.14 | % | | | 1.11 | % | | | 1.07 | % |
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
| | | For the Three Months Ended | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Taxable Equivalent Yields/Rates | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
Loans | | | 4.95 | % | | | 5.08 | % | | | 5.06 | % | | | 5.17 | % | | | 5.17 | % |
Mortgage loans held-for-sale | | | 2.99 | | | | 4.12 | | | | 3.51 | | | | 4.40 | | | | 3.44 | |
Interest on securities: | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2.52 | | | | 2.55 | | | | 1.95 | | | | 2.68 | | | | 3.05 | |
Non-taxable | | | 4.90 | | | | 4.85 | | | | 4.93 | | | | 4.90 | | | | 4.96 | |
Cash balances in other banks | | | 0.63 | | | | 0.60 | | | | 0.65 | | | | 0.58 | | | | 0.35 | |
Total interest-earning assets | | | 4.47 | | | | 4.66 | | | | 4.67 | | | | 4.63 | | | | 4.46 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | 0.55 | | | | 0.54 | | | | 0.54 | | | | 0.56 | | | | 0.54 | |
Interest on FHLB and other borrowings | | | 4.04 | | | | 4.04 | | | | 4.08 | | | | 2.97 | | | | 2.01 | |
Interest on subordinated debt | | | 6.30 | | | | 6.32 | | | | 6.34 | | | | - | | | | - | |
Total interest-bearing liabilities | | | 0.69 | | | | 0.68 | | | | 0.62 | | | | 0.58 | | | | 0.57 | |
Net interest spread | | | 3.78 | | | | 3.98 | | | | 4.05 | | | | 4.05 | | | | 3.89 | |
Net interest margin | | | 3.99 | % | | | 4.18 | % | | | 4.23 | % | | | 4.21 | % | | | 4.06 | % |
| | | As of | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
Shareholders' Equity and Capital Ratios | | | | | | | | | | | | | | | | | | | | |
Tier 1 Leverage Ratio | | | 9.57 | % | | | 9.74 | % | | | 9.51 | % | | | 9.13 | % | | | 9.68 | % |
Tier 1 Common Capital Ratio | | | 11.46 | | | | 11.64 | | | | 11.25 | | | | 11.18 | | | | 11.18 | |
Tier 1 Risk-based Capital Ratio | | | 11.46 | | | | 11.64 | | | | 11.25 | | | | 11.18 | | | | 11.18 | |
Total Risk-based Capital Ratio | | | 13.89 | | | | 14.19 | | | | 13.79 | | | | 11.97 | | | | 11.91 | |
Equity / Assets | | | 12.15 | | | | 13.05 | | | | 13.03 | | | | 12.74 | | | | 12.29 | |
Tangible common equity to tangible assets | | | 9.68 | % | | | 10.36 | % | | | 10.25 | % | | | 9.95 | % | | | 9.52 | % |
Book value per share | | $ | 21.68 | | | $ | 21.26 | | | $ | 20.80 | | | $ | 20.36 | | | $ | 20.01 | |
Tangible book value per share | | $ | 16.82 | | | $ | 16.37 | | | $ | 15.87 | | | $ | 15.42 | | | $ | 15.03 | |
| | | For the Three Months Ended | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
Detail of other noninterest expense | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 6,935 | | | $ | 6,948 | | | $ | 6,907 | | | $ | 6,945 | | | $ | 6,077 | |
Commission-based compensation | | | 1,076 | | | | 1,104 | | | | 1,036 | | | | 875 | | | | 844 | |
Occupancy and equipment expense | | | 1,193 | | | | 1,181 | | | | 1,131 | | | | 1,135 | | | | 1,048 | |
Data processing expenses | | | 568 | | | | 572 | | | | 618 | | | | 667 | | | | 511 | |
Advertising and marketing expenses | | | 156 | | | | 198 | | | | 191 | | | | 160 | | | | 19 | |
Legal fees | | | 163 | | | | 182 | | | | 179 | | | | 122 | | | | 173 | |
FDIC insurance assessments | | | 234 | | | | 246 | | | | 257 | | | | 263 | | | | 242 | |
Property and casualty insurance premiums | | | 95 | | | | 90 | | | | 166 | | | | 223 | | | | 169 | |
Accounting and audit expenses | | | 211 | | | | 252 | | | | 249 | | | | 250 | | | | 332 | |
Consulting and other professional expenses | | | 201 | | | | 330 | | | | 184 | | | | 243 | | | | 387 | |
Telecommunications expenses | | | 114 | | | | 146 | | | | 140 | | | | 159 | | | | 132 | |
ORE, Repo asset and other collection expenses | | | 41 | | | | 142 | | | | 89 | | | | 59 | | | | 256 | |
Core deposit intangible amortization | | | 182 | | | | 191 | | | | 192 | | | | 191 | | | | 175 | |
Other noninterest expense | | | 971 | | | | 1,050 | | | | 915 | | | | 761 | | | | 1,079 | |
Total noninterest expense | | $ | 12,140 | | | $ | 12,632 | | | $ | 12,254 | | | $ | 12,053 | | | $ | 11,444 | |
NATIONAL COMMERCE CORPORATION
Unaudited Financial Highlights
(In thousands, except share and per share amounts and percentages)
| | | As of | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
| Non-GAAP Reconciliation | | | | | | | | | | | | | | | | | | | | |
Total shareholders' equity | | $ | 237,044 | | | $ | 232,173 | | | $ | 226,120 | | | $ | 221,100 | | | $ | 216,636 | |
Less: intangible assets | | | 52,768 | | | | 52,962 | | | | 53,154 | | | | 53,312 | | | | 53,474 | |
Less: minority interest not included in intangible assets | | | 375 | | | | 423 | | | | 428 | | | | 341 | | | | 438 | |
Tangible common equity | | $ | 183,901 | | | $ | 178,788 | | | $ | 172,538 | | | $ | 167,447 | | | $ | 162,724 | |
Common shares outstanding at year or period end | | | 10,934,541 | | | | 10,920,423 | | | | 10,870,033 | | | | 10,861,487 | | | | 10,824,969 | |
Tangible book value per share | | $ | 16.82 | | | $ | 16.37 | | | $ | 15.87 | | | $ | 15.42 | | | $ | 15.03 | |
Total assets at end of period | | $ | 1,951,658 | | | $ | 1,779,278 | | | $ | 1,735,782 | | | $ | 1,735,940 | | | $ | 1,763,369 | |
Less: intangible assets | | | 52,768 | | | | 52,962 | | | | 53,154 | | | | 53,312 | | | | 53,474 | |
Adjusted total assets at end of period | | $ | 1,898,890 | | | $ | 1,726,316 | | | $ | 1,682,628 | | | $ | 1,682,628 | | | $ | 1,709,895 | |
Tangible common equity to tangible assets | | | 9.68 | % | | | 10.36 | % | | | 10.25 | % | | | 9.95 | % | | | 9.52 | % |
Total allowance for loan losses | | $ | 12,113 | | | $ | 11,950 | | | $ | 11,642 | | | $ | 10,927 | | | $ | 9,842 | |
Less: allowance for loan losses attributable toCBI (factoring receivables) | | | 500 | | | | 500 | | | | 500 | | | | 500 | | | | 500 | |
Adjusted allowance for loan losses at end of period | | $ | 11,613 | | | $ | 11,450 | | | $ | 11,142 | | | $ | 10,427 | | | $ | 9,342 | |
Nonacquired loans held for investment(4) | | | 1,076,209 | | | | 1,009,677 | | | | 978,836 | | | | 942,781 | | | | 870,471 | |
Allowance for loan losses to nonacquired loans (4) | | | 1.08 | % | | | 1.13 | % | | | 1.14 | % | | | 1.11 | % | | | 1.07 | % |
| | | For the Three Months Ended | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | |
Non-GAAP Reconciliation | | | | | | | | | | | | | | | | | | | | |
Total average shareholders' equity | | $ | 234,249 | | | $ | 228,953 | | | $ | 223,357 | | | $ | 218,730 | | | $ | 202,299 | |
Less: average intangible assets | | | 52,871 | | | | 53,056 | | | | 53,234 | | | | 53,388 | | | | 46,113 | |
Less: average minority interest not includedin intangible assets | | | 262 | | | | 282 | | | | 284 | | | | 231 | | | | 331 | |
Average tangible common equity | | $ | 181,116 | | | $ | 175,615 | | | $ | 169,839 | | | $ | 165,111 | | | $ | 155,855 | |
Net income to common shareholders | | | 4,907 | | | | 4,813 | | | | 4,354 | | | | 3,779 | | | | 2,938 | |
Return on average tangible common equity (ROATCE) | | | 10.78 | % | | | 10.90 | % | | | 10.31 | % | | | 9.21 | % | | | 7.48 | % |
Efficiency ratio: | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 16,990 | | | $ | 16,877 | | | $ | 16,652 | | | $ | 16,663 | | | $ | 14,981 | |
Total noninterest income | | | 3,472 | | | | 4,002 | | | | 3,357 | | | | 3,125 | | | | 2,136 | |
Less: gain (loss) on sale of securities | | | - | | | | - | | | | - | | | | - | | | | - | |
Operating revenue | | $ | 20,462 | | | $ | 20,879 | | | $ | 20,009 | | | $ | 19,788 | | | $ | 17,117 | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
Total noninterest expenses | | $ | 12,140 | | | $ | 12,632 | | | $ | 12,254 | | | $ | 12,053 | | | $ | 11,444 | |
Efficiency ratio | | | 59.33 | % | | | 60.50 | % | | | 61.24 | % | | | 60.91 | % | | | 66.86 | % |
Operating efficiency ratio: | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 16,990 | | | $ | 16,877 | | | $ | 16,652 | | | $ | 16,663 | | | $ | 14,981 | |
Total noninterest income | | | 3,472 | | | | 4,002 | | | | 3,357 | | | | 3,125 | | | | 2,136 | |
Less: gain (loss) on sale of securities | | | - | | | | - | | | | - | | | | - | | | | - | |
Operating revenue | | $ | 20,462 | | | $ | 20,879 | | | $ | 20,009 | | | $ | 19,788 | | | $ | 17,117 | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
Total noninterest expenses | | $ | 12,140 | | | $ | 12,632 | | | $ | 12,254 | | | $ | 12,053 | | | $ | 11,444 | |
Less: merger/conversion-related expenses | | | 169 | | | | 160 | | | | 12 | | | | 138 | | | | 395 | |
Adjusted noninterest expenses | | $ | 11,971 | | | $ | 12,472 | | | $ | 12,242 | | | $ | 11,915 | | | $ | 11,049 | |
Operating efficiency ratio | | | 58.50 | % | | | 59.73 | % | | | 61.18 | % | | | 60.21 | % | | | 64.55 | % |
(1) Excludes securities gains
(2) Excludes merger/conversion-related expenses
(3) Net income to common shareholders / average assets
(4) Excludes CBI loans
NATIONAL COMMERCE CORPORATION
Unaudited Consolidated Balance Sheets
(In thousands, except share and per share data)
| | | December 31, 2016 | | | December 31, 2015 | |
| Assets | |
Cash and due from banks | | $ | 35,897 | | | $ | 27,173 | |
Interest-bearing deposits with banks | | | 181,396 | | | | 185,284 | |
Cash and cash equivalents | | | 217,293 | | | | 212,457 | |
Investment securities held-to-maturity (fair value of $25,894 and $27,843 at December 31, 2016and December 31, 2015, respectively) | | | 26,329 | | | | 27,458 | |
Investment securities available-for-sale | | | 73,380 | | | | 53,405 | |
Other investments | | | 7,879 | | | | 6,235 | |
Mortgage loans held-for-sale | | | 15,373 | | | | 15,020 | |
Loans, net of unearned income | | | 1,485,484 | | | | 1,319,414 | |
Less: allowance for loan losses | | | 12,113 | | | | 9,842 | |
Loans, net | | | 1,473,371 | | | | 1,309,572 | |
Premises and equipment, net | | | 31,884 | | | | 31,432 | |
Accrued interest receivable | | | 4,129 | | | | 3,510 | |
Bank-owned life insurance | | | 28,034 | | | | 27,223 | |
Other real estate | | | 2,068 | | | | 3,965 | |
Goodwill | | | 50,736 | | | | 50,686 | |
Core deposit intangible, net | | | 2,032 | | | | 2,788 | |
Other assets | | | 19,150 | | | | 19,618 | |
Total assets | | $ | 1,951,658 | | | $ | 1,763,369 | |
| | | | | | | | | |
Liabilities and Shareholders’ Equity | |
Deposits: | | | | | | | | |
Noninterest-bearing demand | | $ | 429,030 | | | $ | 382,946 | |
Interest-bearing demand | | | 262,261 | | | | 202,649 | |
Savings and money market | | | 703,289 | | | | 611,887 | |
Time | | | 273,130 | | | | 316,976 | |
Total deposits | | | 1,667,710 | | | | 1,514,458 | |
Federal Home Loan Bank advances | | | 7,000 | | | | 22,000 | |
Subordinated debt | | | 24,500 | | | | - | |
Accrued interest payable | | | 829 | | | | 627 | |
Other liabilities | | | 14,575 | | | | 9,648 | |
Total liabilities | | | 1,714,614 | | | | 1,546,733 | |
Commitments and contingencies | | | | | | | | |
Shareholders’ equity: | | | | | | | | |
Preferred stock, 250,000 shares authorized, no shares issued or outstanding | | | - | | | | - | |
Common stock, $0.01 par value, 30,000,000 shares authorized, 10,934,541 and 10,824,969shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | | | 109 | | | | 108 | |
Additional paid-in capital | | | 205,372 | | | | 202,456 | |
Retained earnings | | | 24,005 | | | | 6,152 | |
Accumulated other comprehensive income | | | 249 | | | | 548 | |
Total shareholders' equity attributable to National Commerce Corporation | | | 229,735 | | | | 209,264 | |
Noncontrolling interest | | | 7,309 | | | | 7,372 | |
Total shareholders' equity | | | 237,044 | | | | 216,636 | |
Total liabilities and shareholders' equity | | $ | 1,951,658 | | | $ | 1,763,369 | |
NATIONAL COMMERCE CORPORATION
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
| | | For the Three Months Ended | | | For the Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
Interest and dividend income: | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 18,082 | | | $ | 15,777 | | | $ | 71,225 | | | $ | 52,720 | |
Interest and dividends on taxable investment securities | | | 525 | | | | 370 | | | | 1,813 | | | | 1,154 | |
Interest on non-taxable investment securities | | | 201 | | | | 173 | | | | 802 | | | | 466 | |
Interest on interest-bearing deposits and federal funds sold | | | 224 | | | | 168 | | | | 723 | | | | 505 | |
Total interest income | | | 19,032 | | | | 16,488 | | | | 74,563 | | | | 54,845 | |
Interest expense: | | | | | | | | | | | | | | | | |
Interest on deposits | | | 1,583 | | | | 1,395 | | | | 6,127 | | | | 4,354 | |
Interest on borrowings | | | 71 | | | | 112 | | | | 294 | | | | 442 | |
Interest on subordinated debt | | | 388 | | | | - | | | | 960 | | | | - | |
Total interest expense | | | 2,042 | | | | 1,507 | | | | 7,381 | | | | 4,796 | |
Net interest income | | | 16,990 | | | | 14,981 | | | | 67,182 | | | | 50,049 | |
Provision for loan losses | | | 441 | | | | 631 | | | | 3,248 | | | | 1,113 | |
Net interest income after provision for loan losses | | | 16,549 | | | | 14,350 | | | | 63,934 | | | | 48,936 | |
Other income: | | | | | | | | | | | | | | | | |
Service charges and fees on deposit accounts | | | 523 | | | | 402 | | | | 2,019 | | | | 1,288 | |
Mortgage origination and fee income | | | 1,711 | | | | 1,063 | | | | 6,975 | | | | 5,278 | |
Merchant sponsorship revenue | | | 613 | | | | 365 | | | | 2,168 | | | | 861 | |
Income from bank-owned life insurance | | | 196 | | | | 182 | | | | 810 | | | | 433 | |
Wealth management fees | | | 10 | | | | 10 | | | | 49 | | | | 53 | |
Gain (loss) on other real estate | | | (31 | ) | | | - | | | | 244 | | | | (24 | ) |
Other | | | 450 | | | | 114 | | | | 1,691 | | | | 570 | |
Total other income | | | 3,472 | | | | 2,136 | | | | 13,956 | | | | 8,459 | |
Other expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 6,935 | | | | 6,077 | | | | 27,735 | | | | 21,364 | |
Commission-based compensation | | | 1,076 | | | | 844 | | | | 4,091 | | | | 3,744 | |
Occupancy and equipment | | | 1,193 | | | | 1,048 | | | | 4,640 | | | | 3,584 | |
Core deposit intangible amortization | | | 182 | | | | 175 | | | | 756 | | | | 508 | |
Other operating expense | | | 2,754 | | | | 3,300 | | | | 11,857 | | | | 11,045 | |
Total other expense | | | 12,140 | | | | 11,444 | | | | 49,079 | | | | 40,245 | |
Earnings before income taxes | | | 7,881 | | | | 5,042 | | | | 28,811 | | | | 17,150 | |
Income tax expense | | | 2,600 | | | | 1,667 | | | | 9,394 | | | | 5,476 | |
Net earnings | | | 5,281 | | | | 3,375 | | | | 19,417 | | | | 11,674 | |
Less: Net earnings attributable to noncontrolling interest | | | 374 | | | | 437 | | | | 1,564 | | | | 2,069 | |
Net earnings attributable to National Commerce Corporation | | $ | 4,907 | | | $ | 2,938 | | | $ | 17,853 | | | $ | 9,605 | |
| | | | | | | | | | | | | | | | | |
Weighted average common and diluted shares outstanding | | | | | | | | | | | | | | | | |
Basic | | | 10,930,309 | | | | 10,345,146 | | | | 10,886,092 | | | | 9,238,784 | |
Diluted | | | 11,171,583 | | | | 10,552,871 | | | | 11,093,987 | | | | 9,395,741 | |
| | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.45 | | | $ | 0.28 | | | $ | 1.64 | | | $ | 1.04 | |
Diluted earnings per common share | | $ | 0.44 | | | $ | 0.28 | | | $ | 1.61 | | | $ | 1.02 | |
NATIONAL COMMERCE CORPORATION
Average Balance Sheets and Net Interest Analysis
| | | For the Three Months Ended | |
(Dollars in thousands) | | December 31, 2016 | | | September 30, 2016 | | | June 30, 2016 | | | March 31, 2016 | | | December 31, 2015 | |
Interest-earning assets | | Average Balance | | | Interest Income/ Expense | | | Average Yield/ Rate | | | Average Balance | | | Interest Income/ Expense | | | Average Yield/ Rate | | | Average Balance | | | Interest Income/ Expense | | | Average Yield/ Rate | | | Average Balance | | | Interest Income/ Expense | | | Average Yield/ Rate | | | Average Balance | | | Interest Income/ Expense | | | Average Yield/ Rate | |
Loans | | $ | 1,446,629 | | | $ | 18,012 | | | | 4.95 | % | | $ | 1,399,016 | | | $ | 17,853 | | | | 5.08 | % | | $ | 1,391,789 | | | $ | 17,523 | | | | 5.06 | % | | $ | 1,352,737 | | | $ | 17,373 | | | | 5.17 | % | | $ | 1,204,437 | | | $ | 15,699 | | | | 5.17 | % |
Mortgage loans held-for-sale | | | 10,366 | | | | 78 | | | | 2.99 | | | | 13,986 | | | | 145 | | | | 4.12 | | | | 17,288 | | | | 151 | | | | 3.51 | | | | 10,503 | | | | 115 | | | | 4.40 | | | | 9,697 | | | | 84 | | | | 3.44 | |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable securities | | | 82,881 | | | | 525 | | | | 2.52 | | | | 76,787 | | | | 493 | | | | 2.55 | | | | 78,907 | | | | 383 | | | | 1.95 | | | | 61,764 | | | | 412 | | | | 2.68 | | | | 48,097 | | | | 370 | | | | 3.05 | |
Tax-exempt securities | | | 25,910 | | | | 319 | | | | 4.90 | | | | 26,029 | | | | 317 | | | | 4.85 | | | | 26,036 | | | | 319 | | | | 4.93 | | | | 26,041 | | | | 317 | | | | 4.90 | | | | 21,982 | | | | 275 | | | | 4.96 | |
Cash balances in other banks | | | 140,813 | | | | 224 | | | | 0.63 | | | | 101,422 | | | | 152 | | | | 0.60 | | | | 80,140 | | | | 129 | | | | 0.65 | | | | 151,318 | | | | 218 | | | | 0.58 | | | | 191,077 | | | | 168 | | | | 0.35 | |
Total interest-earning assets | | | 1,706,599 | | | $ | 19,158 | | | | 4.47 | | | | 1,617,240 | | | $ | 18,960 | | | | 4.66 | | | | 1,594,160 | | | $ | 18,505 | | | | 4.67 | | | | 1,602,363 | | | $ | 18,435 | | | | 4.63 | | | | 1,475,290 | | | $ | 16,596 | | | | 4.46 | |
Noninterest-earning assets | | | 149,709 | | | | | | | | | | | | 148,275 | | | | | | | | | | | | 148,959 | | | | | | | | | | | | 156,260 | | | | | | | | | | | | 145,791 | | | | | | | | | |
Total assets | | $ | 1,856,308 | | | | | | | | | | | $ | 1,765,515 | | | | | | | | | | | $ | 1,743,119 | | | | | | | | | | | $ | 1,758,623 | | | | | | | | | | | $ | 1,621,081 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing transaction accounts | | $ | 235,340 | | | $ | 149 | | | | 0.25 | % | | $ | 214,439 | | | $ | 125 | | | | 0.23 | % | | $ | 210,776 | | | $ | 124 | | | | 0.24 | % | | $ | 204,339 | | | $ | 123 | | | | 0.24 | % | | $ | 196,140 | | | $ | 129 | | | | 0.26 | % |
Savings and money market deposits | | | 633,765 | | | | 791 | | | | 0.50 | | | | 612,618 | | | | 713 | | | | 0.46 | | | | 603,173 | | | | 698 | | | | 0.47 | | | | 620,429 | | | | 762 | | | | 0.49 | | | | 542,631 | | | | 612 | | | | 0.45 | |
Time deposits | | | 273,293 | | | | 643 | | | | 0.94 | | | | 283,022 | | | | 661 | | | | 0.93 | | | | 288,350 | | | | 654 | | | | 0.91 | | | | 306,106 | | | | 684 | | | | 0.90 | | | | 291,399 | | | | 654 | | | | 0.89 | |
Federal Home Loan Bank and other borrowed money | | | 7,000 | | | | 71 | | | | 4.04 | | | | 7,000 | | | | 71 | | | | 4.04 | | | | 7,000 | | | | 71 | | | | 4.08 | | | | 10,959 | | | | 81 | | | | 2.97 | | | | 22,104 | | | | 112 | | | | 2.01 | |
Subordinated debt | | | 24,494 | | | | 388 | | | | 6.30 | | | | 24,498 | | | | 389 | | | | 6.32 | | | | 11,605 | | | | 183 | | | | 6.34 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
Total interest-bearing liabilities | | | 1,173,892 | | | $ | 2,042 | | | | 0.69 | | | | 1,141,577 | | | $ | 1,959 | | | | 0.68 | | | | 1,120,904 | | | $ | 1,730 | | | | 0.62 | | | | 1,141,833 | | | $ | 1,650 | | | | 0.58 | | | | 1,052,274 | | | $ | 1,507 | | | | 0.57 | |
Noninterest-bearing deposits | | | 431,253 | | | | | | | | | | | | 381,205 | | | | | | | | | | | | 388,363 | | | | | | | | | | | | 386,674 | | | | | | | | | | | | 354,812 | | | | | | | | | |
Total funding sources | | | 1,605,145 | | | | | | | | | | | | 1,522,782 | | | | | | | | | | | | 1,509,267 | | | | | | | | | | | | 1,528,507 | | | | | | | | | | | | 1,407,086 | | | | | | | | | |
Noninterest-bearing liabilities | | | 16,914 | | | | | | | | | | | | 13,780 | | | | | | | | | | | | 10,495 | | | | | | | | | | | | 11,386 | | | | | | | | | | | | 11,696 | | | | | | | | | |
Shareholders' equity | | | 234,249 | | | | | | | | | | | | 228,953 | | | | | | | | | | | | 223,357 | | | | | | | | | | | | 218,730 | | | | | | | | | | | | 202,299 | | | | | | | | | |
| | | $ | 1,856,308 | | | | | | | | | | | $ | 1,765,515 | | | | | | | | | | | $ | 1,743,119 | | | | | | | | | | | $ | 1,758,623 | | | | | | | | | | | $ | 1,621,081 | | | | | | | | | |
Net interest rate spread | | | | | | | | | | | 3.78 | % | | | | | | | | | | | 3.98 | % | | | | | | | | | | | 4.05 | % | | | | | | | | | | | 4.05 | % | | | | | | | | | | | 3.89 | % |
Net interest income/margin (taxable equivalent) | | | | | | | 17,116 | | | | 3.99 | % | | | | | | | 17,001 | | | | 4.18 | % | | | | | | | 16,775 | | | | 4.23 | % | | | | | | | 16,785 | | | | 4.21 | % | | | | | | | 15,089 | | | | 4.06 | % |
Tax equivalent adjustment | | | | | | | 126 | | | | | | | | | | | | 124 | | | | | | | | | | | | 123 | | | | | | | | | | | | 122 | | | | | | | | | | | | 108 | | | | | |
Net interest income/margin | | | | | | $ | 16,990 | | | | 3.96 | % | | | | | | $ | 16,877 | | | | 4.15 | % | | | | | | $ | 16,652 | | | | 4.20 | % | | | | | | $ | 16,663 | | | | 4.18 | % | | | | | | $ | 14,981 | | | | 4.03 | % |
