EXHIBIT 99.1
SOUTHSIDE BANCSHARES, INC.
ANNOUNCES NET INCOME FOR THE
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014
NASDAQ Global Select Market Symbol - “SBSI”
Tyler, Texas, (October 24, 2014) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ:SBSI) today reported its financial results for the three and nine months ended September 30, 2014.
Southside reported net income of $6.1 million for the three months ended September 30, 2014, a decrease of $2.8 million, or 31.4%, when compared to $8.9 million for the same period in 2013. Net income for the nine months ended September 30, 2014 decreased $4.2 million, or 14.6%, to $24.8 million when compared to $29.0 million for the same period in 2013.
Diluted earnings per common share were $0.32 and $0.47 for the three months ended September 30, 2014 and 2013, respectively, a decrease of $0.15, or 31.9%. For the nine months ended September 30, 2014, diluted earnings per common share decreased $0.23, or 14.9% to $1.31 when compared to $1.54 for the same period in 2013.
The return on average shareholders’ equity for the nine months ended September 30, 2014 was 11.92%, compared to 15.47% for the same period in 2013. The return on average assets was 0.97% for the nine months ended September 30, 2014 compared to 1.16% for the same period in 2013.
“We are pleased to report the financial results for the quarter and nine months ended September 30, 2014,” stated Sam Dawson, President and Chief Executive Officer of Southside Bancshares, Inc. “During the third quarter, we experienced meaningful loan growth, including significant loan growth in commercial real estate of $60.7 million. Most of this growth was in our Austin and Fort Worth market areas. We also enjoyed growth in our municipal, construction and commercial loan portfolios during the quarter. Nonperforming assets to total assets decreased to 0.29% at the end of the quarter from 0.42% at June 30, 2014.”
“We are extremely gratified that our shareholders overwhelmingly approved the issuance of additional shares of our common stock to acquire OmniAmerican Bancorp, Inc. at the shareholders meeting on October 14, 2014, and we are pleased that OmniAmerican's stockholders have also approved the acquisition. We look forward to strategically expanding Southside’s franchise in the growing and dynamic greater Fort Worth market area with the closing of the OmniAmerican merger once we receive final regulatory approvals.”
“On October 3, 2014, we announced that we intended to sell all of our subprime automobile loans purchased by our wholly-owned subsidiary, SFG Finance, LLC (“SFG”), as well as the repossessed assets SFG holds and we were endeavoring to complete such a sale in the fourth quarter of 2014. As a result of this decision, we transferred all SFG loans to loans held for sale at September 30, 2014 and recorded a write down on our investment in SFG. The transfer of $74.8 million of SFG loans, to held for sale and the write down of the Company’s investment in SFG at September 30, 2014, resulted in a loss of approximately $2.3 million, net of tax. Loan growth during the third quarter more than offset the transfer of loans at September 30, 2014 to loans held for sale. In addition, the transfer to held for sale of our SFG loans in September resulted in a reduction in interest income of approximately $685,000, net of tax.”
“Exiting the subprime automobile market, combined with our pending merger with OmniAmerican Bancorp, Inc., will enable us to focus our attention on integration and further organic growth in our commercial loan and commercial real estate loan portfolios. Continued cost containment efforts resulted in a decrease in total noninterest expense for the quarter and nine months ended September 30, 2014, which included approximately $465,000 and $1.1 million, respectively, of merger-related expenses associated with the pending acquisition of OmniAmerican Bancorp.”
Loans and Deposits
For the nine months ended September 30, 2014, total loans increased by $47.4 million, or 3.5%, when compared to December 31, 2013. During the nine months ended September 30, 2014, other real estate loans increased $70.0 million, construction loans increased $52.9 million, municipal loans increased $10.8 million, commercial loans increased $4.7 million, 1-4 family real estate loans increased $4.4 million, and loans to individuals decreased $95.4 million. Loans to individuals decreased as a direct result of the subprime automobile loans transferred to held for sale.
Nonperforming assets decreased during the nine months of 2014 by $3.7 million, or 27.5%, to $9.9 million, or 0.29% of total assets, when compared to 0.39% at December 31, 2013, partially due to approximately $2.1 million in nonperforming subprime loans transferred into loans held for sale at September 30, 2014.
During the nine months ended September 30, 2014, the allowance for loan losses decreased $5.5 million, or 28.9%, to $13.4 million, or 0.96% of total loans, when compared to 1.40% at December 31, 2013. The $5.5 million decrease was due to the subprime automobile loans transferred to held for sale. The decrease in the allowance as a percentage of total loans was due to the shift in the risk characteristics of the loan portfolio during the nine months ended September 30, 2014.
During the nine months ended September 30, 2014, deposits, net of brokered deposits, decreased $53.3 million, or 2.2%, compared to December 31, 2013, due to the decrease in public fund deposits of $98.0 million for the nine months ended September 30, 2014.
Net Interest Income for the Three Months
Net interest income decreased $921,000, or 3.5%, to $25.7 million for the three months ended September 30, 2014, when compared to $26.6 million for the same period in 2013. The decrease in net interest income was primarily the result of the decrease in average interest earning assets of $119.0 million, compared to the same period in 2013. For the three months ended September 30, 2014, our net interest spread increased to 3.65% when compared to 3.59% for the same period in 2013. The net interest margin increased to 3.80% for the three months ended September 30, 2014 compared to 3.72% for the same period in 2013. The reason for the increase in the net interest spread and margin was the increase in the yield on the interest earning assets which more than offset the slight increase in the yield on the interest bearing liabilities compared to the same period in 2013.
Net Interest Income for the Nine Months
Net interest income increased $8.5 million, or 11.6%, to $81.5 million for the nine months ended September 30, 2014, when compared to $73.0 million for the same period in 2013. For the nine months ended September 30, 2014, our net interest spread increased to 3.75% from 3.42% for the same period in 2013. The net interest margin increased to 3.89% for the nine months ended September 30, 2014, compared to 3.58% for the same period in 2013.
Net Income for the Three Months
Net income decreased $2.8 million, or 31.4%, for the three months ended September 30, 2014, to $6.1 million when compared to the same period in 2013. The decrease was primarily the result of an increase in provision for loan losses of $1.2 million due to the write down and transfer of SFG purchased loans to held for sale, the impairment charge of $2.2 million on our investment in SFG, a decrease in interest income of $1.0 million due to the transfer of SFG loans to held for sale and $465,000 of merger-related expense associated with the pending acquisition of OmniAmerican, which was partially offset by an increase in net gain on sale of available for sale securities of $1.3 million.
Net Income for the Nine Months
Net income for the nine months ended September 30, 2014 decreased $4.2 million, or 14.6%, to $24.8 million, when compared to $29.0 million for the same period in 2013. This decrease was due to a decrease in net gain on sale of available for sale securities of $7.5 million, a $5.5 million increase in provision for loan losses and the impairment charge of $2.2 million on our investment in SFG. These decreases were partially offset by an increase in net interest income of $8.5 million, and decreases in noninterest expense of $1.1 million and provision for income tax expense of $2.1 million.
Noninterest expense decreased $1.1 million, or 1.8%, for the nine months ended September 30, 2014, compared to the same period in 2013, primarily due to decreases in FHLB prepayment fees, salary and employee benefit expense and occupancy expense, which were partially offset by an increase in professional fees associated with the pending OmniAmerican merger.
About Southside Bancshares, Inc.
Southside Bancshares, Inc. is a bank holding company with approximately $3.4 billion in assets that owns 100% of Southside Bank. Southside Bank currently has 50 banking centers in Texas and operates a network of 49 ATMs.
To learn more about Southside Bancshares, Inc., please visit our investor relations website at www.southside.com/investor. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website. Questions or comments may be directed to Susan Hill at (903)531-7220, or susan.hill@southside.com.
Forward-Looking Statements
Certain statements of other than historical fact that are contained in this document and in other written material, press releases and oral statements issued by or on behalf of the Company, a bank holding company, may be considered to be “forward-looking statements” within the meaning of and subject to the protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “likely,” “intend,” “probability,” “risk,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements. For example, discussions about trends in asset quality, capital, liquidity, the pace of loan growth, earnings and certain market risk disclosures, including the impact of interest rate and other economic uncertainty, are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual income gains and losses could materially differ from those that have been estimated. In addition, with respect to the pending acquisition of OmniAmerican Bancorp, including future financial and operating results, Southside’s and OmniAmerican’s plans, objectives, expectations and intentions, the expected timing of completion of the merger and other statements are not historical facts. Among the key factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the following: (i) the risk that a regulatory approval that may be required for the proposed mergers is not obtained or is obtained subject to conditions that are not anticipated; (ii) the risk that a condition to the closing of the mergers may not be satisfied; (iii) the timing to consummate the proposed merger; (iv) the risk that the businesses will not be integrated successfully; (v) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vi) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (vii) the diversion of management time on merger-related issues; and (viii) liquidity risk affecting Southside’s and OmniAmerican’s abilities to meet its obligations when they come due.
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 under “Forward-Looking Information” and Item 1A. “Risk Factors,” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
Additional Information About the Proposed Merger and Where to Find It
This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed merger between Southside and OmniAmerican, on September 5, 2014, Southside filed with the SEC a joint proxy statement/prospectus of Southside and OmniAmerican which also constitutes a definitive prospectus for Southside. Southside and OmniAmerican delivered the definitive joint proxy statement/prospectus to their respective shareholders or stockholders on or about September 11, 2014. On September 16, 2014, each of Southside and OmniAmerican filed a Current Report on Form 8-K, which also constitutes additional definitive proxy statement materials for OmniAmerican and a definitive prospectus for Southside, that contained supplemental proxy statement materials. SOUTHSIDE AND OMNIAMERICAN URGE INVESTORS AND SECURITY HOLDERS TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors and security holders may obtain (when available) copies of all documents filed with the SEC regarding the merger, free of charge, at the SEC’s website (www.sec.gov). You may also obtain these documents, free of charge, from (i) Southside’s website (www.southside.com) under the tab “Investor Relations,” and then under the tab “Documents”; (ii) Southside upon written request to Corporate Secretary, P.O. Box 8444, Tyler, Texas 75711; (iii) OmniAmerican’s website (www.omniamerican.com) under the tab “Investor Relations,” and then under the tab “SEC Filings”; or (iv) OmniAmerican upon written request to Keishi High at 1320 South University Drive, Suite 900, Fort Worth, Texas 76107.
|
| | | | | | | | | | | |
| | At
September 30,
2014 | | At
December 31,
2013 | | At
September 30,
2013 |
| | | |
| | | |
| | (dollars in thousands) |
| | (unaudited) |
| Selected Financial Condition Data (at end of period): | | | | | |
| | | | | | |
| Total assets | $ | 3,368,031 |
| | $ | 3,445,663 |
| | $ | 3,469,623 |
|
| Loans | 1,398,674 |
| | 1,351,273 |
| | 1,317,568 |
|
| Allowance for loan losses | 13,415 |
| | 18,877 |
| | 19,356 |
|
| Loans held for sale | 75,436 |
| | 151 |
| | 496 |
|
| Mortgage-backed securities: | | | | | |
| Available for sale, at estimated fair value | 674,529 |
| | 840,258 |
| | 861,845 |
|
| Held to maturity, at carrying value | 256,528 |
| | 275,569 |
| | 293,712 |
|
| Investment securities: | | | | | |
| Available for sale, at estimated fair value | 321,221 |
| | 337,429 |
| | 363,640 |
|
| Held to maturity, at carrying value | 389,529 |
| | 391,552 |
| | 392,208 |
|
| Federal Home Loan Bank stock, at cost | 24,435 |
| | 34,065 |
| | 32,781 |
|
| Deposits | 2,443,564 |
| | 2,527,808 |
| | 2,408,366 |
|
| Long-term obligations | 536,315 |
| | 559,660 |
| | 528,450 |
|
| Shareholders' equity | 291,109 |
| | 259,518 |
| | 240,957 |
|
| Nonperforming assets | 9,864 |
| | 13,606 |
| | 13,653 |
|
| Nonaccrual loans | 4,685 |
| | 8,088 |
| | 8,370 |
|
| Accruing loans past due more than 90 days | 1 |
| | 3 |
| | 2 |
|
| Restructured loans | 4,388 |
| | 3,888 |
| | 3,802 |
|
| Other real estate owned | 383 |
| | 726 |
| | 740 |
|
| Repossessed assets | 407 |
| | 901 |
| | 739 |
|
| | | | | | |
| Asset Quality Ratios: | | | | | |
| Nonaccruing loans to total loans | 0.33 | % | | 0.60 | % | | 0.64 | % |
| Allowance for loan losses to nonaccruing loans | 286.34 |
| | 233.40 |
| | 231.25 |
|
| Allowance for loan losses to nonperforming assets | 136.00 |
| | 138.74 |
| | 141.77 |
|
| Allowance for loan losses to total loans | 0.96 |
| | 1.40 |
| | 1.47 |
|
| Nonperforming assets to total assets | 0.29 |
| | 0.39 |
| | 0.39 |
|
| Net charge-offs to average loans | 1.65 |
| | 0.82 |
| | 0.77 |
|
| | | | | | |
| Capital Ratios: | | | | | |
| Shareholders’ equity to total assets | 8.64 |
| | 7.53 |
| | 6.94 |
|
| Average shareholders’ equity to average total assets | 8.12 |
| | 7.39 |
| | 7.53 |
|
Loan Portfolio Composition
The following table sets forth loan totals by category for the periods presented: |
| | | | | | | | | | | |
| | At
September 30,
2014 | | At
December 31,
2013 | | At
September 30,
2013 |
| | (in thousands) |
| | (unaudited) |
| Real Estate Loans: | | | | | |
| Construction | $ | 178,127 |
| | $ | 125,219 |
| | $ | 126,922 |
|
| 1-4 Family Residential | 394,889 |
| | 390,499 |
| | 387,964 |
|
| Other | 332,519 |
| | 262,536 |
| | 252,827 |
|
| Commercial Loans | 162,356 |
| | 157,655 |
| | 153,019 |
|
| Municipal Loans | 256,319 |
| | 245,550 |
| | 223,063 |
|
| Loans to Individuals | 74,464 |
| | 169,814 |
| | 173,773 |
|
| Total Loans | $ | 1,398,674 |
| | $ | 1,351,273 |
| | $ | 1,317,568 |
|
|
| | | | | | | | | | | | | | | |
| | At or For the
Three Months Ended
September 30, | | At or For the
Nine Months Ended
September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| | (dollars in thousands) |
| | (unaudited) |
| Selected Operating Data: | | | | | | | |
| Total interest income | $ | 29,840 |
| | $ | 30,811 |
| | $ | 94,165 |
| | $ | 86,587 |
|
| Total interest expense | 4,120 |
| | 4,170 |
| | 12,697 |
| | 13,615 |
|
| Net interest income | 25,720 |
| | 26,641 |
| | 81,468 |
| | 72,972 |
|
| Provision for loan losses | 4,868 |
| | 3,640 |
| | 11,651 |
| | 6,153 |
|
| Net interest income after provision for loan losses | 20,852 |
| | 23,001 |
| | 69,817 |
| | 66,819 |
|
| Noninterest income | | | | | | | |
| Deposit services | 3,860 |
| | 4,005 |
| | 11,292 |
| | 11,662 |
|
| Net gain (loss) on sale of securities available for sale | 1,151 |
| | (142 | ) | | 1,660 |
| | 9,204 |
|
| | | | | | | | |
| Total other-than-temporary impairment losses | — |
| | — |
| | — |
| | (52 | ) |
| Portion of loss recognized in other comprehensive income (before taxes) | — |
| | — |
| | — |
| | 10 |
|
| Net impairment losses recognized in earnings | — |
| | — |
| | — |
| | (42 | ) |
| | | | | | | | |
| Impairment of investment | (2,239 | ) | | — |
| | (2,239 | ) | | — |
|
| Gain on sale of loans | 108 |
| | 130 |
| | 269 |
| | 690 |
|
| Trust income | 798 |
| | 759 |
| | 2,340 |
| | 2,212 |
|
| Bank owned life insurance income | 320 |
| | 327 |
| | 941 |
| | 845 |
|
| Other | 1,021 |
| | 1,334 |
| | 3,077 |
| | 3,178 |
|
| Total noninterest income | 5,019 |
| | 6,413 |
| | 17,340 |
| | 27,749 |
|
| Noninterest expense | | | | | | | |
| Salaries and employee benefits | 12,798 |
| | 13,167 |
| | 38,992 |
| | 39,777 |
|
| Occupancy expense | 1,773 |
| | 1,922 |
| | 5,313 |
| | 5,690 |
|
| Advertising, travel & entertainment | 489 |
| | 599 |
| | 1,637 |
| | 1,896 |
|
| ATM and debit card expense | 327 |
| | 310 |
| | 946 |
| | 994 |
|
| Professional fees | 1,132 |
| | 730 |
| | 3,363 |
| | 1,932 |
|
| Software and data processing expense | 543 |
| | 528 |
| | 1,530 |
| | 1,515 |
|
| Telephone and communications | 292 |
| | 383 |
| | 890 |
| | 1,218 |
|
| FDIC insurance | 437 |
| | 433 |
| | 1,319 |
| | 1,263 |
|
| FHLB prepayment fees | — |
| | — |
| | — |
| | 988 |
|
| Other | 2,226 |
| | 2,192 |
| | 6,635 |
| | 6,476 |
|
| Total noninterest expense | 20,017 |
| | 20,264 |
| | 60,625 |
| | 61,749 |
|
| Income before income tax expense | 5,854 |
| | 9,150 |
| | 26,532 |
| | 32,819 |
|
| (Benefit) provision for income tax expense | (243 | ) | | 257 |
| | 1,754 |
| | 3,816 |
|
| Net income | $ | 6,097 |
| | $ | 8,893 |
| | $ | 24,778 |
| | $ | 29,003 |
|
|
| | | | | | | | | | | | | | | |
| Common share data: | | | | | | |
| Weighted-average basic shares outstanding | 18,864 |
| | 18,772 |
| | 18,838 |
| | 18,756 |
|
| Weighted-average diluted shares outstanding | 18,965 |
| | 18,824 |
| | 18,932 |
| | 18,790 |
|
| Net income per common share | | | | | | | |
| Basic | $ | 0.32 |
| | $ | 0.47 |
| | $ | 1.32 |
| | $ | 1.54 |
|
| Diluted | 0.32 |
| | 0.47 |
| | 1.31 |
| | 1.54 |
|
| Book value per common share | — |
| | — |
| | 15.39 |
| | 12.83 |
|
| Cash dividend paid per common share | 0.22 |
| | 0.20 |
| | 0.64 |
| | 0.60 |
|
|
| | | | | | | | | | | |
| | At or For the
Three Months Ended
September 30, | | At or For the
Nine Months Ended
September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| | (unaudited) | | (unaudited) |
| Selected Performance Ratios: | | | | | | | |
| Return on average assets | 0.72 | % | | 1.03 | % | | 0.97 | % | | 1.16 | % |
| Return on average shareholders’ equity | 8.41 |
| | 15.01 |
| | 11.92 |
| | 15.47 |
|
| Average yield on interest earning assets | 4.32 |
| | 4.23 |
| | 4.42 |
| | 4.16 |
|
| Average yield on interest bearing liabilities | 0.67 |
| | 0.64 |
| | 0.67 |
| | 0.74 |
|
| Net interest spread | 3.65 |
| | 3.59 |
| | 3.75 |
| | 3.42 |
|
| Net interest margin | 3.80 |
| | 3.72 |
| | 3.89 |
| | 3.58 |
|
| Average interest earnings assets to average interest bearing liabilities | 128.27 |
| | 125.40 |
| | 126.45 |
| | 126.82 |
|
| Noninterest expense to average total assets | 2.38 |
| | 2.34 |
| | 2.37 |
| | 2.48 |
|
| Efficiency ratio | 55.05 |
| | 54.43 |
| | 53.94 |
| | 59.17 |
|
RESULTS OF OPERATIONS
The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities.
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | AVERAGE BALANCES AND YIELDS | | |
| | | | | | (dollars in thousands) | | | | |
| | | | | | (unaudited) | | | | |
| | | | | | Nine Months Ended | | | | |
| | September 30, 2014 | | September 30, 2013 |
| | AVG | | | | AVG | | AVG | | | | AVG |
| | BALANCE | | INTEREST | | YIELD | | BALANCE | | INTEREST | | YIELD |
| ASSETS | | | | | | | | | | | |
| INTEREST EARNING ASSETS: | | | | | | | | | | | |
| Loans (1) (2) | $ | 1,384,269 |
| | $ | 56,849 |
| | 5.49 | % | | $ | 1,285,612 |
| | $ | 57,531 |
| | 5.98 | % |
| Loans Held For Sale | 682 |
| | 12 |
| | 2.35 | % | | 1,421 |
| | 35 |
| | 3.29 | % |
| Securities: | | | | | | | | | | | |
| Investment Securities (Taxable)(4) | 33,943 |
| | 476 |
| | 1.87 | % | | 54,150 |
| | 672 |
| | 1.66 | % |
| Investment Securities (Tax-Exempt)(3)(4) | 666,084 |
| | 27,488 |
| | 5.52 | % | | 660,537 |
| | 25,211 |
| | 5.10 | % |
| Mortgage-backed Securities (4) | 1,057,683 |
| | 21,309 |
| | 2.69 | % | | 1,054,822 |
| | 13,685 |
| | 1.73 | % |
| Total Securities | 1,757,710 |
| | 49,273 |
| | 3.75 | % | | 1,769,509 |
| | 39,568 |
| | 2.99 | % |
| FHLB stock and other investments, at cost | 28,597 |
| | 144 |
| | 0.67 | % | | 29,843 |
| | 135 |
| | 0.60 | % |
| Interest Earning Deposits | 49,850 |
| | 96 |
| | 0.26 | % | | 45,620 |
| | 93 |
| | 0.27 | % |
| Total Interest Earning Assets | 3,221,108 |
| | 106,374 |
| | 4.42 | % | | 3,132,005 |
| | 97,362 |
| | 4.16 | % |
| NONINTEREST EARNING ASSETS: | | | | | | | | | | | |
| Cash and Due From Banks | 42,780 |
| | | | | | 44,416 |
| | | | |
| Bank Premises and Equipment | 53,012 |
| | | | | | 50,409 |
| | | | |
| Other Assets | 126,457 |
| | | | | | 121,650 |
| | | | |
| Less: Allowance for Loan Loss | (18,435 | ) | | | | | | (18,917 | ) | | | | |
| Total Assets | $ | 3,424,922 |
| | | | | | $ | 3,329,563 |
| | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | |
| Savings Deposits | $ | 115,633 |
| | 101 |
| | 0.12 | % | | $ | 107,571 |
| | 106 |
| | 0.13 | % |
| Time Deposits | 604,881 |
| | 3,244 |
| | 0.72 | % | | 632,518 |
| | 3,479 |
| | 0.74 | % |
| Interest Bearing Demand Deposits | 1,215,800 |
| | 2,631 |
| | 0.29 | % | | 1,064,743 |
| | 2,497 |
| | 0.31 | % |
| Total Interest Bearing Deposits | 1,936,314 |
| | 5,976 |
| | 0.41 | % | | 1,804,832 |
| | 6,082 |
| | 0.45 | % |
| Short-term Interest Bearing Liabilities | 53,604 |
| | 353 |
| | 0.88 | % | | 186,520 |
| | 1,755 |
| | 1.26 | % |
| Long-term Interest Bearing Liabilities – FHLB Dallas | 497,076 |
| | 5,303 |
| �� | 1.43 | % | | 418,074 |
| | 4,690 |
| | 1.50 | % |
| Long-term Debt (5) | 60,311 |
| | 1,065 |
| | 2.36 | % | | 60,311 |
| | 1,088 |
| | 2.41 | % |
| Total Interest Bearing Liabilities | 2,547,305 |
| | 12,697 |
| | 0.67 | % | | 2,469,737 |
| | 13,615 |
| | 0.74 | % |
| NONINTEREST BEARING LIABILITIES: | | | | | | | | | | | |
| Demand Deposits | 570,854 |
| | | | | | 562,545 |
| | | | |
| Other Liabilities | 28,765 |
| | | | | | 46,693 |
| | | | |
| Total Liabilities | 3,146,924 |
| | | | | | 3,078,975 |
| | | | |
| SHAREHOLDERS’ EQUITY | 277,998 |
| | | | | | 250,588 |
| | | | |
| Total Liabilities and Shareholders’ Equity | $ | 3,424,922 |
| | | | | | $ | 3,329,563 |
| | | | |
| NET INTEREST INCOME | | | $ | 93,677 |
| | | | | | $ | 83,747 |
| | |
| NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | | | | | 3.89 | % | | | | | | 3.58 | % |
| NET INTEREST SPREAD | | | | | 3.75 | % | | | | | | 3.42 | % |
| |
| (1) | Interest on loans includes net fees on loans that are not material in amount. |
| |
| (2) | Interest income includes taxable-equivalent adjustments of $3,025 and $2,886 for the nine months ended September 30, 2014 and 2013, respectively. |
| |
| (3) | Interest income includes taxable-equivalent adjustments of $9,184 and $7,889 for the nine months ended September 30, 2014 and 2013, respectively. |
| |
| (4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
| |
| (5) | Represents the issuance of junior subordinated debentures. |
Note: As of September 30, 2014 and 2013, loans on nonaccrual status totaled $4,685 and $8,370, respectively. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | AVERAGE BALANCES AND YIELDS | | |
| | | | | | (dollars in thousands) | | | | |
| | | | | | (unaudited) | | | | |
| | | | | | Three Months Ended | | | | |
| | September 30, 2014 | | September 30, 2013 |
| | AVG | | | | AVG | | AVG | | | | AVG |
| | BALANCE | | INTEREST | | YIELD | | BALANCE | | INTEREST | | YIELD |
| ASSETS | | | | | | | | | | | |
| INTEREST EARNING ASSETS: | | | | | | | | | | | |
| Loans (1)(2) | $ | 1,416,061 |
| | $ | 18,172 |
| | 5.09 | % | | $ | 1,300,606 |
| | $ | 19,581 |
| | 5.97 | % |
| Loans Held For Sale | 1,277 |
| | 4 |
| | 1.24 | % | | 702 |
| | 7 |
| | 3.96 | % |
| Securities: | | | | | | | | | | | |
| Investment Securities (Taxable) (4) | 43,951 |
| | 210 |
| | 1.90 | % | | 33,128 |
| | 139 |
| | 1.66 | % |
| Investment Securities (Tax-Exempt)(3)(4) | 698,438 |
| | 9,614 |
| | 5.46 | % | | 773,187 |
| | 9,819 |
| | 5.04 | % |
| Mortgage-backed Securities (4) | 902,406 |
| | 6,070 |
| | 2.67 | % | | 1,087,403 |
| | 5,069 |
| | 1.85 | % |
| Total Securities | 1,644,795 |
| | 15,894 |
| | 3.83 | % | | 1,893,718 |
| | 15,027 |
| | 3.15 | % |
| FHLB stock and other investments, at cost | 26,123 |
| | 36 |
| | 0.55 | % | | 33,472 |
| | 36 |
| | 0.43 | % |
| Interest Earning Deposits | 45,726 |
| | 31 |
| | 0.27 | % | | 24,472 |
| | 15 |
| | 0.24 | % |
| Total Interest Earning Assets | 3,133,982 |
| | 34,137 |
| | 4.32 | % | | 3,252,970 |
| | 34,666 |
| | 4.23 | % |
| NONINTEREST EARNING ASSETS: | | | | | | | | | | | |
| Cash and Due From Banks | 39,533 |
| | | | | | 40,344 |
| | | | |
| Bank Premises and Equipment | 53,626 |
| | | | | | 50,879 |
| | | | |
| Other Assets | 132,724 |
| | | | | | 109,716 |
| | | | |
| Less: Allowance for Loan Loss | (18,029 | ) | | | | | | (18,667 | ) | | | | |
| Total Assets | $ | 3,341,836 |
| | | | | | $ | 3,435,242 |
| | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | |
| Savings Deposits | $ | 118,745 |
| | 32 |
| | 0.11 | % | | $ | 109,789 |
| | 35 |
| | 0.13 | % |
| Time Deposits | 573,893 |
| | 1,011 |
| | 0.70 | % | | 660,771 |
| | 1,199 |
| | 0.72 | % |
| Interest Bearing Demand Deposits | 1,168,888 |
| | 833 |
| | 0.28 | % | | 1,052,529 |
| | 777 |
| | 0.29 | % |
| Total Interest Bearing Deposits | 1,861,526 |
| | 1,876 |
| | 0.40 | % | | 1,823,089 |
| | 2,011 |
| | 0.44 | % |
| Short-term Interest Bearing Liabilities | 39,146 |
| | 226 |
| | 2.29 | % | | 254,256 |
| | 116 |
| | 0.18 | % |
| Long-term Interest Bearing Liabilities – FHLB Dallas | 482,241 |
| | 1,659 |
| | 1.36 | % | | 456,448 |
| | 1,679 |
| | 1.46 | % |
| Long-term Debt (5) | 60,311 |
| | 359 |
| | 2.36 | % | | 60,311 |
| | 364 |
| | 2.39 | % |
| Total Interest Bearing Liabilities | 2,443,224 |
| | 4,120 |
| | 0.67 | % | | 2,594,104 |
| | 4,170 |
| | 0.64 | % |
| NONINTEREST BEARING LIABILITIES: | | | | | | | | | | | |
| Demand Deposits | 578,866 |
| | | | | | 568,023 |
| | | | |
| Other Liabilities | 32,058 |
| | | | | | 38,048 |
| | | | |
| Total Liabilities | 3,054,148 |
| | | | | | 3,200,175 |
| | | | |
| SHAREHOLDERS’ EQUITY | 287,688 |
| | | | | | 235,067 |
| | | | |
| Total Liabilities and Shareholders’ Equity | $ | 3,341,836 |
| | | | | | $ | 3,435,242 |
| | | | |
| NET INTEREST INCOME | | | $ | 30,017 |
| | | | | | $ | 30,496 |
| | |
| NET INTEREST MARGIN ON AVERAGE EARNING ASSETS | | | | | 3.80 | % | | | | | | 3.72 | % |
| NET INTEREST SPREAD | | | | | 3.65 | % | | | | | | 3.59 | % |
| |
| (1) | Interest on loans includes net fees on loans that are not material in amount. |
| |
| (2) | Interest income includes taxable-equivalent adjustments of $1,008 and $963 for the three months ended September 30, 2014 and 2013, respectively. |
| |
| (3) | Interest income includes taxable-equivalent adjustments of $3,289 and $2,892 for the three months ended September 30, 2014 and 2013, respectively. |
| |
| (4) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
| |
| (5) | Represents the issuance of junior subordinated debentures. |
Note: As of September 30, 2014 and 2013, loans on nonaccrual status totaled $4,685 and $8,370, respectively. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.
