Carolina Financial Corporation (NASDAQ:CARO) today announced
financial results for the first quarter of 2017.
Operational highlights for the three
months ended March 31, 2017 include:
- On January 25, 2017, the Company closed a public offering of
1.8 million shares of its common stock with net proceeds of
approximately $47.7 million.
- On March 18, 2017, the Company closed its previously announced
acquisition of Greer Bancshares Incorporated, the holding company
for Greer State Bank, (“Greer”) with the operational conversion
completed in April 2017. Excluding purchase accounting adjustments,
total assets of Greer were $382.7 million, total loans receivable
were $205.2 million and total deposits were $311.4 million as of
the closing date.
Financial highlights at and for the
three months ended March 31, 2017, include:
- Net income for the first quarter 2017 increased 34.6% to $4.9
million, or $0.35 per diluted share, from $3.6 million, or $0.30
per diluted share for the first quarter of 2016.
- Operating earnings for the first quarter of 2017, which
excludes certain non-operating income and expenses, increased 56.1%
to $5.7 million, or $0.41 per diluted share, from $3.7 million, or
$0.31 per diluted share, from the first quarter of 2016.
- Performance ratios Q1 2017 compared to Q1 2016:- Return on
average assets improved to 1.11% compared to 1.03%.- Operating
return on average assets improved to 1.30% compared to 1.04%.-
Return on tangible equity was 9.98% compared to 10.53% for the
first quarter.- Operating return on tangible equity improved to
11.70% compared to 10.65%.
- Loans receivable, excluding Greer loans acquired, grew at an
annualized rate of 15.7%, or $46.4, million since December 31,
2016.
- Nonperforming assets to total assets were 0.34% at March 31,
2017 compared to 0.40% at December 31, 2016.
- Total deposits, excluding Greer deposits acquired, increased
$35.6 million since December 31, 2016. Core deposits, excluding
Greer core deposits acquired, increased $26.6 million since
December 31, 2016.
“We are very excited to add the Greer State Bank
customers and employees to the CresCom Bank family. We were
pleased with a smooth system conversion of Greer which was
completed on April 10th. Overall operating results for the
first quarter of 2017 exceeded our expectations with the increase
in operating earnings of 56.1% from the first quarter of 2016,”
stated Jerry Rexroad, Chief Executive Officer.
Acquisition of Greer Bancshares
Incorporated
Effective March 18, 2017, the Company completed
its previously announced acquisition of Greer. At closing, the
holding companies were merged with Carolina Financial as the
surviving corporation, and Greer State Bank also merged with and
into CresCom Bank, with CresCom Bank surviving the merger and
continuing its corporate existence.
Under the terms of the merger, Greer
shareholders had the right to receive either $18.00 in cash or
0.782 shares of Carolina Financial common stock, or a combination
thereof, for each share of Greer common stock they owned
immediately prior to the merger, subject to the limitation that 10%
of the outstanding shares of Greer common stock will be exchanged
for cash and 90% of the outstanding shares of Greer common stock
will be exchanged for shares of Carolina Financial common stock.
The mailing of materials regarding the election and exchange of
Greer stock certificates commenced on March 27, 2017 and the
election period expires on May 17, 2017.
The acquisition of Greer was accounted for under
the acquisition method of accounting. The assets and liabilities of
Greer have been recorded at their estimated fair values and added
to those of Carolina Financial for periods following the merger
date. Included in the March 31, 2017 consolidated balance sheet
were approximately $192.4 million in acquired loans, net of related
purchase accounting adjustments and $313.9 million in deposits. The
Company may continue to refine its valuations of acquired assets
and liabilities for up to one year following the merger date.
Financial Results
Carolina Financial Corporation
- The Company reported an increase in net income for the three
months ended March 31, 2017 of $4.9 million, or $0.35 per diluted
share, as compared to $3.6 million, or $0.30 per diluted share, for
the three months ended March 31, 2016. Included in net income for
the three months ended March 31, 2017 and 2016 were pretax merger
related expenses of $1.3 million and $186,000,
respectively.
- Operating earnings for the first quarter of 2017, which
excludes certain non-operating income and expenses, increased 56.1%
to $5.7 million, or $0.41 per diluted share, from $3.7 million, or
$0.31 per diluted share, from the first quarter of 2016.
- The Company’s net interest margin-tax equivalent increased to
3.93% for the first quarter of 2017 compared to 3.53% for the first
quarter of 2016.
- The Company reported book value per common share of $17.01 and
$13.23 as of March 31, 2017 and December 31, 2016,
respectively. Tangible book value per common share was $14.17
and $12.59 as of March 31, 2017 and December 31, 2016,
respectively.
- At March 31, 2017, the Company’s regulatory capital ratios
exceeded the minimum levels currently required. Stockholders’
equity totaled $271.5 million as of March 31, 2017 compared to
$163.2 million at December 31, 2016. Tangible equity to tangible
assets at March 31, 2017 was 10.6% compared to 9.3% at December 31,
2016.
Community Banking
- The community banking segment net income increased 32.1% to
$4.5 million for the three months ended March 31, 2017 compared to
$3.4 million for the three months ended March 31, 2016. Included in
net income for the three months ended March 31, 2017 and 2016 were
pretax merger related expenses of $1.3 million and $186,000,
respectively.
- No provision for loan loss was recorded during the three months
ended March 31, 2017 or 2016. This was primarily due to
continued excellent asset quality as well as net recoveries to
average loans receivable of (0.01%) and (0.04%) for the three
months ended March 31, 2017 and 2016, respectively.
- Non-performing assets were 0.34% and 0.40% of total assets at
March 31, 2017 and December 31, 2016, respectively.
- Loans receivable increased to $1.4 billion at March 31, 2017
compared to $1.2 billion at December 31, 2016. Loans receivable,
excluding Greer loans acquired, increased $46.4 million since year
end. The increase in loans receivable primarily relates to
the completed acquisition of Greer as well as the Bank’s continuing
focus on commercial lending and residential mortgage lending.
- The number of checking accounts increased at an annualized rate
of 11.7%, excluding Greer checking accounts acquired, since
December 31, 2016. Total deposits, excluding acquired
deposits from the Greer acquisition, increased $35.6 million since
December 31, 2016. As of March 31, 2017 and December 31, 2016, core
deposits, defined as checking, savings and money market, comprised
approximately 64.6% and 60.6%, respectively, of total
deposits.
Wholesale Mortgage Banking
- Net income for the wholesale mortgage banking segment was
$645,000 for the three months ended March 31, 2017 compared to
$401,000 for the three months ended March 31, 2016.
- The increase in net income of the wholesale mortgage banking
segment during first quarter of 2017 is primarily attributable to
an increase in margin during the period. Net margin was 1.80%
for the three months ended March 31, 2017 compared to 1.47% for the
three months ended March 31, 2016. Originations for the three
months ended March 31, 2017 and 2016 were $180.8 million and $186.8
million, respectively.
Conference Call
A conference call will be held at 2:00 p.m.,
Eastern Time on April 25, 2017. The conference call can be accessed
by dialing (855) 218-6998 or (615) 247-5963 and requesting the
Carolina Financial Corporation earnings call. The conference ID
number is 95417349. Listeners should dial in 10 minutes prior to
the start of the call. The live webcast and presentation
slides will be available on www.haveanicebank.com under Investor
Relations, “Investor Presentations.”
A replay of the webcast will be available on
www.haveanicebank.com under Investor Relations, “Investor
Presentations” shortly following the call. A replay of the
conference call can be accessed approximately three hours after the
call by dialing (855) 859-2056 or (404) 537-3406 and requesting
conference number 95417349.
About Carolina Financial
Corporation
Carolina Financial Corporation is the holding
company of CresCom Bank, which also owns and operates Atlanta-based
Crescent Mortgage Company. Carolina Financial trades on
NASDAQ under the symbol CARO. As of March 31, 2017, Carolina
Financial had approximately $2.2 billion in total assets and
Crescent Mortgage Company originated loans in 48 states partnering
with community banks, credit unions and mortgage brokers. In June
2016, Carolina Financial completed its acquisition of Congaree
Bancshares, Inc. and its wholly-owned subsidiary, Congaree State
Bank. In March 2017, Carolina Financial completed its acquisition
of Greer Bancshares Incorporated.
Addendum to News Release – Use of
Certain Non-GAAP Financial Measures and Forward-Looking
Statements
This news release contains financial information
determined by methods other than in accordance with generally
accepted accounting principles (“GAAP”). Such statements
should be read along with the accompanying tables, which provide a
reconciliation of non-GAAP measures to GAAP measures. This
news release and the accompanying tables discuss financial
measures, such as core deposits, tangible book value, operating
earnings and net income related to segments of the Company, which
are non-GAAP measures. We believe that such non-GAAP measures
are useful because they enhance the ability of investors and
management to evaluate and compare the Company’s operating results
from period to period in a meaningful manner. Non-GAAP
measures should not be considered as an alternative to any measure
of performance as promulgated under GAAP. Investors should
consider the Company’s performance and financial condition as
reported under GAAP and all other relevant information when
assessing the performance or financial condition of the
company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the Company's results or financial
condition as reported under GAAP.
Please refer to the Non-GAAP reconciliation
tables later in this release for additional information.
Forward-Looking Statements
Certain statements in this news release contain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, such as statements
relating to future plans and expectations, and are thus
prospective. Such forward-looking statements include but
are not limited to statements with respect to our plans,
objectives, expectations and intentions and other statements that
are not historical facts, and other statements identified by words
such as “believes,” “expects,” “anticipates,” “estimates,”
“intends,” “plans,” “targets,” and “projects,” as well as similar
expressions. Such statements are subject to risks,
uncertainties, and other factors which could cause actual results
to differ materially from future results expressed or implied by
such forward-looking statements. Although we believe
that the assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove to be inaccurate.
Therefore, we can give no assurance that the results
contemplated in the forward-looking statements will be
realized. The inclusion of this forward-looking
information should not be construed as a representation by the
Company or any person that the future events, plans, or
expectations contemplated by the Company will be achieved.
The following factors, among others, could cause
actual results to differ materially from the anticipated results or
other expectations expressed in the forward-looking statements: (1)
competitive pressures among depository and other financial
institutions may increase significantly and have an effect on
pricing, spending, third-party relationships and revenues; (2) the
strength of the United States economy in general and the strength
of the local economies in which we conduct operations may be
different than expected resulting in, among other things, a
deterioration in the credit quality or a reduced demand for credit,
including the resultant effect on the Company’s loan portfolio and
allowance for loan losses; (3) the rate of delinquencies and
amounts of charge-offs, the level of allowance for loan loss, the
rates of loan growth, or adverse changes in asset quality in our
loan portfolio, which may result in increased credit risk-related
losses and expenses; (4) the risk that the preliminary financial
information reported herein and our current preliminary analysis
will be different when our review is finalized; (5) changes in the
U.S. legal and regulatory framework including, but not limited to,
the Dodd-Frank Act and regulations adopted thereunder; (6) adverse
conditions in the stock market, the public debt market and other
capital markets (including changes in interest rate conditions)
could have a negative impact on the Company; (7) the business
related to acquisitions may not be integrated successfully or such
integration may take longer to accomplish than expected; (8) the
expected cost savings and any revenue synergies from acquisitions
may not be fully realized within expected timeframes; and (9)
disruption from acquisitions may make it more difficult to maintain
relationships with clients, associates, or
suppliers. Additional factors that could cause our
results to differ materially from those described in the
forward-looking statements can be found in our reports (such as our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K) filed with the SEC and available at
the SEC’s Internet site (http://www.sec.gov). All
subsequent written and oral forward-looking statements concerning
the Company or any person acting on its behalf are expressly
qualified in their entirety by the cautionary statements
above. We do not undertake any obligation to update any
forward-looking statement to reflect circumstances or events that
occur after the date the forward-looking statements are made.
|
|
|
|
|
|
|
|
|
|
|
|
CAROLINA FINANCIAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
(Unaudited) |
|
|
(Audited) |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
ASSETS |
|
|
|
|
|
Cash and
due from banks |
|
$ |
21,456 |
|
|
|
9,761 |
|
Interest-bearing cash |
|
|
36,582 |
|
|
|
14,591 |
|
Cash and
cash equivalents |
|
|
58,038 |
|
|
|
24,352 |
|
Securities available-for-sale |
|
|
494,130 |
|
|
|
335,352 |
|
Federal
funds sold |
|
|
10,560 |
|
|
|
- |
|
Federal
Home Loan Bank stock, at cost |
|
|
12,478 |
|
|
|
11,072 |
|
Other
investments |
|
|
2,116 |
|
|
|
1,768 |
|
Derivative assets |
|
|
3,226 |
|
|
|
2,219 |
|
Loans
held for sale |
|
|
21,399 |
|
|
|
31,569 |
|
Loans
receivable, gross |
|
|
1,417,010 |
|
|
|
1,178,266 |
|
Allowance
for loan losses |
|
|
(10,715 |
) |
|
|
(10,688 |
) |
Loans
receivable, net |
|
|
1,406,295 |
|
|
|
1,167,578 |
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
46,544 |
|
|
|
37,054 |
|
Accrued
interest receivable |
|
|
6,726 |
|
|
|
5,373 |
|
Real
estate acquired through foreclosure, net |
|
|
1,479 |
|
|
|
1,179 |
|
Deferred
tax assets, net |
|
|
10,210 |
|
|
|
8,341 |
|
Mortgage
servicing rights, net |
|
|
15,792 |
|
|
|
15,032 |
|
Cash
value life insurance |
|
|
37,938 |
|
|
|
28,984 |
|
Core
deposit intangible |
|
|
8,005 |
|
|
|
3,658 |
|
Goodwill |
|
|
37,287 |
|
|
|
4,266 |
|
Other
assets |
|
|
9,886 |
|
|
|
5,939 |
|
Total
assets |
|
$ |
2,182,109 |
|
|
|
1,683,736 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
298,365 |
|
|
|
229,905 |
|
Interest-bearing deposits |
|
|
1,309,355 |
|
|
|
1,028,355 |
|
Total
deposits |
|
|
1,607,720 |
|
|
|
1,258,260 |
|
Short-term borrowed funds |
|
|
214,500 |
|
|
|
203,000 |
|
Long-term
debt |
|
|
55,304 |
|
|
|
38,465 |
|
Derivative liabilities |
|
|
682 |
|
|
|
342 |
|
Drafts
outstanding |
|
|
7,129 |
|
|
|
6,223 |
|
Advances
from borrowers for insurance and taxes |
|
|
2,037 |
|
|
|
1,058 |
|
Accrued
interest payable |
|
|
690 |
|
|
|
327 |
|
Reserve
for mortgage repurchase losses |
|
|
2,583 |
|
|
|
2,880 |
|
Dividends
payable to stockholders |
|
|
576 |
|
|
|
502 |
|
Accrued
expenses and other liabilities |
|
|
19,434 |
|
|
|
9,489 |
|
Total
liabilities |
|
|
1,910,655 |
|
|
|
1,520,546 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
Preferred
stock |
|
|
- |
|
|
|
- |
|
Common
stock |
|
|
162 |
|
|
|
125 |
|
Additional paid-in capital |
|
|
168,113 |
|
|
|
66,156 |
|
Retained
earnings |
|
|
102,528 |
|
|
|
98,451 |
|
Accumulated other comprehensive income (loss), net of
tax |
|
|
651 |
|
|
|
(1,542 |
) |
Total
stockholders' equity |
|
|
271,454 |
|
|
|
163,190 |
|
Total
liabilities and stockholders' equity |
|
$ |
2,182,109 |
|
|
|
1,683,736 |
|
|
|
|
|
|
|
|
CAROLINA FINANCIAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
For the Three Months |
|
|
|
Ended March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
Interest income |
|
|
|
|
|
|
Loans |
|
|
$ |
14,968 |
|
|
|
11,085 |
|
Investment securities |
|
|
|
2,553 |
|
|
|
2,152 |
|
Dividends
from Federal Home Loan Bank stock |
|
|
|
101 |
|
|
|
97 |
|
Federal
funds sold |
|
|
|
3 |
|
|
|
- |
|
Other
interest income |
|
|
|
45 |
|
|
|
26 |
|
Total
interest income |
|
|
|
17,670 |
|
|
|
13,360 |
|
Interest expense |
|
|
|
|
|
|
Deposits |
|
|
|
1,692 |
|
|
|
1,367 |
|
Short-term borrowed funds |
|
|
|
355 |
|
|
|
105 |
|
Long-term
debt |
|
|
|
353 |
|
|
|
615 |
|
Total
interest expense |
|
|
|
2,400 |
|
|
|
2,087 |
|
Net interest
income |
|
|
|
15,270 |
|
|
|
11,273 |
|
Provision for loan
losses |
|
|
|
- |
|
|
|
- |
|
Net interest income after provision for loan losses |
|
15,270 |
|
|
|
11,273 |
|
Noninterest income |
|
|
|
|
|
|
Mortgage
banking income |
|
|
|
3,608 |
|
|
|
3,175 |
|
Deposit
service charges |
|
|
|
858 |
|
|
|
862 |
|
Net loss on extinguishment of debt |
|
- |
|
|
|
(9 |
) |
Net gain
on sale of securities |
|
|
|
185 |
|
|
|
417 |
|
Fair value adjustments on interest rate swaps |
|
(58 |
) |
|
|
(281 |
) |
Net increase in cash value life insurance |
|
211 |
|
|
|
229 |
|
Mortgage
loan servicing income |
|
|
|
1,566 |
|
|
|
1,388 |
|
Other |
|
|
|
861 |
|
|
|
495 |
|
Total
noninterest income |
|
|
|
7,231 |
|
|
|
6,276 |
|
Noninterest
expense |
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
|
8,609 |
|
|
|
7,150 |
|
Occupancy
and equipment |
|
|
|
2,182 |
|
|
|
1,842 |
|
Marketing
and public relations |
|
|
|
381 |
|
|
|
385 |
|
FDIC
insurance |
|
|
|
100 |
|
|
|
168 |
|
Provision
for mortgage loan repurchase losses |
|
|
|
(225 |
) |
|
|
(250 |
) |
Legal
expense |
|
|
|
65 |
|
|
|
49 |
|
Other
real estate expense, net |
|
|
|
20 |
|
|
|
20 |
|
Mortgage
subservicing expense |
|
|
|
486 |
|
|
|
423 |
|
Amortization of mortgage servicing rights |
|
|
|
669 |
|
|
|
532 |
|
Merger
related expenses |
|
|
|
1,319 |
|
|
|
186 |
|
Other |
|
|
|
1,980 |
|
|
|
1,763 |
|
Total
noninterest expense |
|
|
|
15,586 |
|
|
|
12,268 |
|
Income before income
taxes |
|
|
|
6,915 |
|
|
|
5,281 |
|
Income tax expense |
|
|
|
2,011 |
|
|
|
1,638 |
|
Net
income |
|
|
$ |
4,904 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
Basic |
|
|
$ |
0.35 |
|
|
|
0.31 |
|
Diluted |
|
|
$ |
0.35 |
|
|
|
0.30 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
|
13,919,711 |
|
|
|
11,746,574 |
|
Diluted |
|
|
|
14,139,241 |
|
|
|
11,978,801 |
|
CAROLINA FINANCIAL CORPORATION |
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Three Months Ended |
Selected
Financial Data: |
|
|
March 31,2017 |
|
|
December 31,2016 |
|
|
September 30,2016 |
|
|
June 30,2016 |
|
|
March 31,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
1,768,323 |
|
|
|
1,651,653 |
|
|
|
1,626,717 |
|
|
|
1,482,963 |
|
|
|
1,412,778 |
|
Investment
securities |
|
|
|
373,551 |
|
|
|
326,485 |
|
|
|
345,385 |
|
|
|
335,105 |
|
|
|
335,929 |
|
Loans receivable,
net |
|
|
|
1,214,777 |
|
|
|
1,138,120 |
|
|
|
1,093,669 |
|
|
|
978,337 |
|
|
|
935,438 |
|
Loans held for
sale |
|
|
|
17,827 |
|
|
|
32,951 |
|
|
|
32,196 |
|
|
|
24,467 |
|
|
|
25,454 |
|
Deposits |
|
|
|
1,330,805 |
|
|
|
1,288,665 |
|
|
|
1,291,567 |
|
|
|
1,170,860 |
|
|
|
1,069,451 |
|
Stockholders'
equity |
|
|
|
210,071 |
|
|
|
160,991 |
|
|
|
157,311 |
|
|
|
145,656 |
|
|
|
141,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity |
|
|
|
9.34 |
% |
|
|
12.80 |
% |
|
|
15.11 |
% |
|
|
7.79 |
% |
|
|
10.31 |
% |
Return on average
tangible equity (Non-GAAP) |
|
|
|
9.98 |
% |
|
|
13.46 |
% |
|
|
15.93 |
% |
|
|
7.96 |
% |
|
|
10.53 |
% |
Return on average
assets |
|
|
|
1.11 |
% |
|
|
1.25 |
% |
|
|
1.46 |
% |
|
|
0.76 |
% |
|
|
1.03 |
% |
Operating return on
average equity (Non-GAAP) |
|
|
|
10.95 |
% |
|
|
14.32 |
% |
|
|
14.95 |
% |
|
|
14.02 |
% |
|
|
10.43 |
% |
Operating return on
average tangible equity (Non-GAAP) |
|
|
|
11.70 |
% |
|
|
15.06 |
% |
|
|
15.76 |
% |
|
|
14.32 |
% |
|
|
10.65 |
% |
Operating return on
average assets (Non-GAAP) |
|
|
|
1.30 |
% |
|
|
1.40 |
% |
|
|
1.45 |
% |
|
|
1.38 |
% |
|
|
1.04 |
% |
Average earning assets
to average total assets |
|
|
|
91.99 |
% |
|
|
93.21 |
% |
|
|
92.94 |
% |
|
|
93.44 |
% |
|
|
93.08 |
% |
Average loans
receivable to average deposits |
|
|
|
91.28 |
% |
|
|
88.32 |
% |
|
|
84.68 |
% |
|
|
83.56 |
% |
|
|
87.47 |
% |
Average stockholders'
equity to average assets |
|
|
|
11.88 |
% |
|
|
9.75 |
% |
|
|
9.67 |
% |
|
|
9.82 |
% |
|
|
10.00 |
% |
Net interest margin-tax
equivalent (1) |
|
|
|
3.93 |
% |
|
|
3.87 |
% |
|
|
3.75 |
% |
|
|
3.64 |
% |
|
|
3.53 |
% |
Net charge-offs
(recovery) to average loans receivable |
|
|
|
(0.01 |
)% |
|
|
(0.12 |
)% |
|
|
(0.02 |
)% |
|
|
(0.03 |
)% |
|
|
(0.04 |
)% |
Nonperforming assets to
period end loans receivable |
|
|
|
0.52 |
% |
|
|
0.58 |
% |
|
|
0.62 |
% |
|
|
0.67 |
% |
|
|
0.59 |
% |
Nonperforming assets to
total assets |
|
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.42 |
% |
|
|
0.45 |
% |
|
|
0.39 |
% |
Nonperforming loans to
total loans |
|
|
|
0.42 |
% |
|
|
0.48 |
% |
|
|
0.37 |
% |
|
|
0.37 |
% |
|
|
0.48 |
% |
Allowance for loan
losses as a percentage of loans receivable (end of period) |
|
|
|
0.76 |
% |
|
|
0.91 |
% |
|
|
0.91 |
% |
|
|
0.96 |
% |
|
|
1.06 |
% |
Allowance for loan
losses as a percentage of non-acquired loans receivable
(Non-GAAP) |
|
|
|
0.96 |
% |
|
|
1.01 |
% |
|
|
1.03 |
% |
|
|
1.10 |
% |
|
|
1.13 |
% |
Allowance for loan
losses as a percentage of nonperforming loans |
|
|
|
180.66 |
% |
|
|
190.01 |
% |
|
|
247.72 |
% |
|
|
262.68 |
% |
|
|
223.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more
past due and still accruing |
|
|
$ |
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonaccrual loans |
|
|
|
5,931 |
|
|
|
5,625 |
|
|
|
4,174 |
|
|
|
3,920 |
|
|
|
4,581 |
|
Total
nonperforming loans |
|
|
|
5,931 |
|
|
|
5,625 |
|
|
|
4,174 |
|
|
|
3,920 |
|
|
|
4,581 |
|
Real estate acquired
through foreclosure, net |
|
|
|
1,479 |
|
|
|
1,179 |
|
|
|
2,843 |
|
|
|
3,272 |
|
|
|
1,091 |
|
Total
nonperforming assets |
|
|
$ |
7,410 |
|
|
|
6,804 |
|
|
|
7,017 |
|
|
|
7,192 |
|
|
|
5,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net interest margin-tax equivalent reflects tax-exempt
income on a tax-equivalent basis. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
March 31,
2017 |
|
|
December 31, 2016 |
|
|
September 30, 2016 |
|
|
June 30, 2016 |
|
|
March 31, 2016 |
|
|
|
Segment net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community
banking |
|
|
$ |
4,509 |
|
|
|
4,565 |
|
|
|
4,734 |
|
|
|
2,162 |
|
|
|
3,413 |
|
|
|
|
Wholesale
mortgage banking |
|
|
|
645 |
|
|
|
806 |
|
|
|
1,402 |
|
|
|
919 |
|
|
|
401 |
|
|
|
|
Other |
|
|
|
(244 |
) |
|
|
(232 |
) |
|
|
(228 |
) |
|
|
(253 |
) |
|
|
(188 |
) |
|
|
|
Eliminations |
|
|
|
(6 |
) |
|
|
11 |
|
|
|
33 |
|
|
|
8 |
|
|
|
17 |
|
|
|
|
Total net
income |
|
|
$ |
4,904 |
|
|
|
5,150 |
|
|
|
5,941 |
|
|
|
2,836 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
2017 |
|
|
|
|
|
|
Community |
|
|
Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking |
|
|
Banking |
|
|
Other |
|
|
Eliminations |
|
|
Total |
|
|
|
Interest
income |
|
|
|
17,257 |
|
|
|
395 |
|
|
|
6 |
|
|
|
12 |
|
|
|
17,670 |
|
|
|
|
Interest
expense |
|
|
|
2,218 |
|
|
|
12 |
|
|
|
182 |
|
|
|
(12 |
) |
|
|
2,400 |
|
|
|
|
Net
interest income (expense) |
|
|
|
15,039 |
|
|
|
383 |
|
|
|
(176 |
) |
|
|
24 |
|
|
|
15,270 |
|
|
|
|
Provision
for loan losses |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Noninterest
income from external customers |
|
|
|
2,384 |
|
|
|
4,846 |
|
|
|
- |
|
|
|
- |
|
|
|
7,230 |
|
|
|
|
Intersegment noninterest income |
|
|
|
276 |
|
|
|
- |
|
|
|
- |
|
|
|
(276 |
) |
|
|
- |
|
|
|
|
Noninterest
expense |
|
|
|
11,324 |
|
|
|
4,052 |
|
|
|
209 |
|
|
|
- |
|
|
|
15,585 |
|
|
|
|
Intersegment noninterest expense |
|
|
|
- |
|
|
|
241 |
|
|
|
1 |
|
|
|
(242 |
) |
|
|
- |
|
|
|
|
Income
(loss) before income taxes |
|
|
|
6,375 |
|
|
|
936 |
|
|
|
(386 |
) |
|
|
(10 |
) |
|
|
6,915 |
|
|
|
|
Income tax
expense (benefit) |
|
|
|
1,866 |
|
|
|
291 |
|
|
|
(142 |
) |
|
|
(4 |
) |
|
|
2,011 |
|
|
|
|
Net income
(loss) |
|
|
|
4,509 |
|
|
|
645 |
|
|
|
(244 |
) |
|
|
(6 |
) |
|
|
4,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
2016 |
|
|
|
|
|
|
Community |
|
|
Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking |
|
|
Banking |
|
|
Other |
|
|
Eliminations |
|
|
Total |
|
|
|
Interest
income |
|
|
|
12,944 |
|
|
|
369 |
|
|
|
5 |
|
|
|
42 |
|
|
|
13,360 |
|
|
|
|
Interest
expense |
|
|
|
1,939 |
|
|
|
5 |
|
|
|
148 |
|
|
|
(5 |
) |
|
|
2,087 |
|
|
|
|
Net
interest income (expense) |
|
|
|
11,005 |
|
|
|
364 |
|
|
|
(143 |
) |
|
|
47 |
|
|
|
11,273 |
|
|
|
|
Provision
for loan losses |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Noninterest
income from external customers |
|
|
|
2,142 |
|
|
|
4,135 |
|
|
|
- |
|
|
|
- |
|
|
|
6,277 |
|
|
|
|
Intersegment noninterest income |
|
|
|
262 |
|
|
|
- |
|
|
|
- |
|
|
|
(262 |
) |
|
|
- |
|
|
|
|
Noninterest
expense |
|
|
|
8,456 |
|
|
|
3,653 |
|
|
|
161 |
|
|
|
- |
|
|
|
12,270 |
|
|
|
|
Intersegment noninterest expense |
|
|
|
- |
|
|
|
241 |
|
|
|
1 |
|
|
|
(242 |
) |
|
|
- |
|
|
|
|
Income
(loss) before income taxes |
|
|
|
4,953 |
|
|
|
605 |
|
|
|
(305 |
) |
|
|
27 |
|
|
|
5,280 |
|
|
|
|
Income tax
expense (benefit) |
|
|
|
1,540 |
|
|
|
204 |
|
|
|
(117 |
) |
|
|
10 |
|
|
|
1,637 |
|
|
|
|
Net income
(loss) |
|
|
|
3,413 |
|
|
|
401 |
|
|
|
(188 |
) |
|
|
17 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March
31, |
|
|
|
Loan Originations |
|
|
Mortgage Banking Income |
|
|
Margin |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
Additional segment information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community
banking |
|
|
$ |
14,753 |
|
|
|
17,679 |
|
|
|
358 |
|
|
|
420 |
|
|
|
2.43 |
% |
|
|
2.38 |
% |
Wholesale
mortgage banking |
|
|
|
180,830 |
|
|
|
186,799 |
|
|
|
3,250 |
|
|
|
2,755 |
|
|
|
1.80 |
% |
|
|
1.47 |
% |
Total
mortgage banking income |
|
|
$ |
195,583 |
|
|
|
204,478 |
|
|
|
3,608 |
|
|
|
3,175 |
|
|
|
1.84 |
% |
|
|
1.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In
thousands, except share data) |
|
|
|
|
At the Month Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand accounts |
|
$ |
298,365 |
|
|
229,905 |
|
|
267,892 |
|
|
246,811 |
|
|
200,743 |
|
Interest-bearing demand accounts |
|
|
309,961 |
|
|
191,851 |
|
|
195,792 |
|
|
166,843 |
|
|
147,393 |
|
Savings
accounts |
|
|
66,506 |
|
|
48,648 |
|
|
47,035 |
|
|
46,032 |
|
|
41,596 |
|
Money
market accounts |
|
|
363,600 |
|
|
292,639 |
|
|
299,960 |
|
|
296,968 |
|
|
257,808 |
|
Total core deposits (Non-GAAP) |
|
|
1,038,432 |
|
|
763,043 |
|
|
810,679 |
|
|
756,654 |
|
|
647,540 |
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit: |
|
|
|
|
|
|
|
|
|
|
Less than
$250,000 |
|
|
524,836 |
|
|
467,937 |
|
|
476,744 |
|
|
480,002 |
|
|
459,789 |
|
$250,000 or
more |
|
|
44,452 |
|
|
27,280 |
|
|
24,853 |
|
|
26,532 |
|
|
20,443 |
|
Total certificates of deposit |
|
|
569,288 |
|
|
495,217 |
|
|
501,597 |
|
|
506,534 |
|
|
480,232 |
|
Total
deposits |
|
$ |
1,607,720 |
|
|
1,258,260 |
|
|
1,312,276 |
|
|
1,263,188 |
|
|
1,127,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At the Month Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
share: |
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
271,454 |
|
|
163,190 |
|
|
160,331 |
|
|
155,017 |
|
|
142,390 |
|
Less
intangible assets |
|
|
(45,292 |
) |
|
(7,924 |
) |
|
(8,037 |
) |
|
(8,150 |
) |
|
(2,875 |
) |
Tangible
common equity (Non-GAAP) |
|
$ |
226,162 |
|
|
155,266 |
|
|
152,294 |
|
|
146,867 |
|
|
139,515 |
|
|
|
|
|
|
|
|
|
|
|
|
Issued and
outstanding shares |
|
|
16,185,408 |
|
|
12,548,328 |
|
|
12,546,220 |
|
|
12,545,282 |
|
|
12,051,615 |
|
Less
nonvested restricted stock awards |
|
|
(227,439 |
) |
|
(211,908 |
) |
|
(216,828 |
) |
|
(219,228 |
) |
|
(302,028 |
) |
Period end
dilutive shares |
|
|
15,957,969 |
|
|
12,336,420 |
|
|
12,329,392 |
|
|
12,326,054 |
|
|
11,749,587 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders equity |
|
$ |
271,454 |
|
|
163,190 |
|
|
160,331 |
|
|
155,017 |
|
|
142,390 |
|
Divided by
period end dilutive shares |
|
|
15,957,969 |
|
|
12,336,420 |
|
|
12,329,392 |
|
|
12,326,054 |
|
|
11,749,587 |
|
Common book
value per share |
|
$ |
17.01 |
|
|
13.23 |
|
|
13.00 |
|
|
12.58 |
|
|
12.12 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity (Non-GAAP) |
|
$ |
226,162 |
|
|
155,266 |
|
|
152,294 |
|
|
146,867 |
|
|
139,515 |
|
Divided by
period end dilutive shares |
|
|
15,957,969 |
|
|
12,336,420 |
|
|
12,329,392 |
|
|
12,326,054 |
|
|
11,749,587 |
|
Tangible
common book value per share (Non-GAAP) |
$ |
14.17 |
|
|
12.59 |
|
|
12.35 |
|
|
11.92 |
|
|
11.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At the Month Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
Acquired and non-acquired loans: |
|
|
|
|
|
|
|
|
|
|
Acquired
loans receivable |
|
$ |
303,244 |
|
|
119,422 |
|
|
129,505 |
|
|
130,228 |
|
|
61,610 |
|
Non-acquired loans receivable |
|
|
1,113,766 |
|
|
1,058,844 |
|
|
1,003,724 |
|
|
937,028 |
|
|
902,411 |
|
Total loans
receivable |
|
$ |
1,417,010 |
|
|
1,178,266 |
|
|
1,133,229 |
|
|
1,067,256 |
|
|
964,021 |
|
%
Acquired |
|
|
21.40 |
% |
|
10.14 |
% |
|
11.43 |
% |
|
12.20 |
% |
|
6.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans |
|
$ |
1,113,766 |
|
|
1,058,844 |
|
|
1,003,724 |
|
|
937,028 |
|
|
902,411 |
|
Allowance
for loan losses |
|
|
10,715 |
|
|
10,688 |
|
|
10,340 |
|
|
10,297 |
|
|
10,233 |
|
Allowance
for loan losses to non-acquired loans (Non-GAAP) |
|
0.96 |
% |
|
1.01 |
% |
|
1.03 |
% |
|
1.10 |
% |
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total loans
receivable |
|
$ |
1,417,010 |
|
|
1,178,266 |
|
|
1,133,229 |
|
|
1,067,256 |
|
|
964,021 |
|
Allowance
for loan losses |
|
|
10,715 |
|
|
10,688 |
|
|
10,340 |
|
|
10,297 |
|
|
10,233 |
|
Allowance
for loan losses to total loans receivable |
|
|
0.76 |
% |
|
0.91 |
% |
|
0.91 |
% |
|
0.96 |
% |
|
1.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In
thousands, except share data) |
|
|
|
|
For the Three Months Ended |
Operating Earnings and Performance Ratios: |
|
March 31,
2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
June 30, 2016 |
|
March 31, 2016 |
Income
before income taxes |
|
$ |
6,915 |
|
|
7,498 |
|
|
8,939 |
|
|
3,700 |
|
|
5,281 |
|
Gain on
sale of securities |
|
|
(185 |
) |
|
(65 |
) |
|
(111 |
) |
|
(113 |
) |
|
(417 |
) |
Net loss on
extinguishment of debt |
|
|
- |
|
|
1,694 |
|
|
118 |
|
|
47 |
|
|
9 |
|
Fair value
adjustments on interest rate swaps |
|
|
58 |
|
|
(998 |
) |
|
(99 |
) |
|
226 |
|
|
281 |
|
Merger
related expenses |
|
|
1,319 |
|
|
260 |
|
|
- |
|
|
2,799 |
|
|
186 |
|
Operating
earnings before income taxes |
|
|
8,107 |
|
|
8,389 |
|
|
8,847 |
|
|
6,659 |
|
|
5,340 |
|
Tax expense
(1) |
|
|
2,358 |
|
|
2,627 |
|
|
2,967 |
|
|
1,555 |
|
|
1,656 |
|
Operating
earnings (Non-GAAP) |
|
$ |
5,749 |
|
|
5,762 |
|
|
5,880 |
|
|
5,104 |
|
|
3,684 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity |
|
|
210,071 |
|
|
160,991 |
|
|
157,311 |
|
|
145,656 |
|
|
141,311 |
|
Average
assets |
|
|
1,768,323 |
|
|
1,651,653 |
|
|
1,626,717 |
|
|
1,482,963 |
|
|
1,412,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
Equity |
|
|
210,071 |
|
|
160,991 |
|
|
157,311 |
|
|
145,656 |
|
|
141,311 |
|
Less
average intangible assets |
|
|
(13,510 |
) |
|
(7,979 |
) |
|
(8,092 |
) |
|
(3,076 |
) |
|
(2,917 |
) |
Average
tangible common equity (Non-GAAP) |
|
|
196,561 |
|
|
153,012 |
|
|
149,219 |
|
|
142,580 |
|
|
138,394 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
return on average assets (Non-GAAP) |
|
|
1.30 |
% |
|
1.40 |
% |
|
1.45 |
% |
|
1.38 |
% |
|
1.04 |
% |
Operating
return on average equity (Non-GAAP) |
|
|
10.95 |
% |
|
14.32 |
% |
|
14.95 |
% |
|
14.02 |
% |
|
10.43 |
% |
Operating
return on average tangible equity (Non-GAAP) |
|
11.70 |
% |
|
15.06 |
% |
|
15.76 |
% |
|
14.32 |
% |
|
10.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,919,711 |
|
|
12,336,420 |
|
|
12,327,921 |
|
|
11,908,282 |
|
|
11,746,574 |
|
Diluted |
|
|
14,139,241 |
|
|
12,585,518 |
|
|
12,535,551 |
|
|
12,076,878 |
|
|
11,978,801 |
|
Operating
earnings per common share: |
|
|
|
|
|
|
|
|
|
|
Basic (Non-GAAP) |
|
$ |
0.41 |
|
|
0.47 |
|
|
0.48 |
|
|
0.43 |
|
|
0.31 |
|
Diluted (Non-GAAP) |
|
$ |
0.41 |
|
|
0.46 |
|
|
0.47 |
|
|
0.42 |
|
|
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported: |
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
$ |
6,915 |
|
|
7,498 |
|
|
8,939 |
|
|
3,700 |
|
|
5,281 |
|
Tax
expense |
|
|
2,011 |
|
|
2,348 |
|
|
2,998 |
|
|
864 |
|
|
1,638 |
|
Net
Income |
|
$ |
4,904 |
|
|
5,150 |
|
|
5,941 |
|
|
2,836 |
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity |
|
|
210,071 |
|
|
160,991 |
|
|
157,311 |
|
|
145,656 |
|
|
141,311 |
|
Average
tangible equity (Non-GAAP) |
|
|
196,561 |
|
|
153,012 |
|
|
149,219 |
|
|
142,580 |
|
|
138,394 |
|
Average
assets |
|
|
1,768,323 |
|
|
1,651,653 |
|
|
1,626,717 |
|
|
1,482,963 |
|
|
1,412,778 |
|
Return on
average assets |
|
|
1.11 |
% |
|
1.25 |
% |
|
1.46 |
% |
|
0.76 |
% |
|
1.03 |
% |
Return on
average equity |
|
|
9.34 |
% |
|
12.80 |
% |
|
15.11 |
% |
|
7.79 |
% |
|
10.31 |
% |
Return on
average tangible equity (Non-GAAP) |
|
|
9.98 |
% |
|
13.46 |
% |
|
15.93 |
% |
|
7.96 |
% |
|
10.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,919,711 |
|
|
12,336,420 |
|
|
12,327,921 |
|
|
11,908,282 |
|
|
11,746,574 |
|
Diluted |
|
|
14,139,241 |
|
|
12,585,518 |
|
|
12,535,551 |
|
|
12,076,878 |
|
|
11,978,801 |
|
Earnings
per common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.35 |
|
|
0.42 |
|
|
0.48 |
|
|
0.24 |
|
|
0.31 |
|
Diluted |
|
$ |
0.35 |
|
|
0.41 |
|
|
0.47 |
|
|
0.23 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax expense is determined using the effective tax
rate reflected in the accompanying income statement for the
applicable reporting period. |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In
thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
March 31,
2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
June 30, 2016 |
|
March 31, 2016 |
Segment net
income: |
|
|
|
|
|
|
|
|
|
|
Community banking |
|
$ |
4,509 |
|
|
|
4,565 |
|
|
|
4,734 |
|
|
|
2,162 |
|
|
|
3,413 |
|
Wholesale mortgage
banking |
|
|
645 |
|
|
|
806 |
|
|
|
1,402 |
|
|
|
919 |
|
|
|
401 |
|
Other |
|
|
(244 |
) |
|
|
(232 |
) |
|
|
(228 |
) |
|
|
(253 |
) |
|
|
(188 |
) |
Eliminations |
|
|
(6 |
) |
|
|
11 |
|
|
|
33 |
|
|
|
8 |
|
|
|
17 |
|
Total net income |
|
$ |
4,904 |
|
|
|
5,150 |
|
|
|
5,941 |
|
|
|
2,836 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
|
Community
banking segment operating earnings: |
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
$ |
6,375 |
|
|
|
6,545 |
|
|
|
6,975 |
|
|
|
2,785 |
|
|
|
4,953 |
|
Tax expense (1) |
|
|
1,866 |
|
|
|
1,980 |
|
|
|
2,241 |
|
|
|
623 |
|
|
|
1,540 |
|
Bank segment net
income |
|
$ |
4,509 |
|
|
|
4,565 |
|
|
|
4,734 |
|
|
|
2,162 |
|
|
|
3,413 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,919,711 |
|
|
|
12,336,420 |
|
|
|
12,327,921 |
|
|
|
11,908,282 |
|
|
|
11,746,574 |
|
Diluted |
|
|
14,139,241 |
|
|
|
12,585,518 |
|
|
|
12,535,551 |
|
|
|
12,076,878 |
|
|
|
11,978,801 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.32 |
|
|
$ |
0.37 |
|
|
$ |
0.38 |
|
|
$ |
0.18 |
|
|
$ |
0.29 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.38 |
|
|
$ |
0.18 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
Bank segment income
before taxes |
|
$ |
6,375 |
|
|
|
6,545 |
|
|
|
6,975 |
|
|
|
2,785 |
|
|
|
4,953 |
|
Gain on sale of
securities |
|
|
(185 |
) |
|
|
(65 |
) |
|
|
(111 |
) |
|
|
(113 |
) |
|
|
(417 |
) |
Net loss on
extinguishment of debt |
|
|
- |
|
|
|
1,693 |
|
|
|
118 |
|
|
|
47 |
|
|
|
9 |
|
Fair value adjustments
on interest rate swaps |
|
|
58 |
|
|
|
(998 |
) |
|
|
(99 |
) |
|
|
226 |
|
|
|
281 |
|
Merger related expenses
(2) |
|
|
1,311 |
|
|
|
254 |
|
|
|
- |
|
|
|
2,697 |
|
|
|
186 |
|
Operating earnings
before income taxes |
|
|
7,559 |
|
|
|
7,429 |
|
|
|
6,883 |
|
|
|
5,642 |
|
|
|
5,012 |
|
Tax expense (1) |
|
|
2,213 |
|
|
|
2,247 |
|
|
|
2,211 |
|
|
|
1,262 |
|
|
|
1,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating bank segment
earnings (Non-GAAP) |
|
$ |
5,346 |
|
|
|
5,182 |
|
|
|
4,672 |
|
|
|
4,380 |
|
|
|
3,454 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating bank segment
earnings per common share: |
|
|
|
|
|
|
|
|
|
|
Basic
(Non-GAAP) |
|
$ |
0.38 |
|
|
$ |
0.42 |
|
|
$ |
0.38 |
|
|
$ |
0.37 |
|
|
$ |
0.29 |
|
Diluted
(Non-GAAP) |
|
$ |
0.38 |
|
|
$ |
0.41 |
|
|
$ |
0.37 |
|
|
$ |
0.36 |
|
|
$ |
0.29 |
|
|
|
|
|
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(1) Tax expense is determined using the effective tax
rate computed for the applicable business segment. |
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(2) Remaining merger related costs were incurred within
the category "Other" segment earnings. |
For More Information, Contact:
William A. Gehman III, EVP and CFO, 843.723.7700
Carolina Financial (NASDAQ:CARO)
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Carolina Financial (NASDAQ:CARO)
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