PLANO, Texas, July 24, 2019 /PRNewswire/ -- LegacyTexas
Financial Group, Inc. (Nasdaq: LTXB) (the "Company"), the holding
company for LegacyTexas Bank (the "Bank"), today announced net
income of $27.0 million for the
second quarter of 2019, a decrease of $2.1
million from the first quarter of 2019 and a decrease of
$854,000 from the second quarter of
2018. Core (non-GAAP) net income totaled $28.8 million for the second quarter of 2019,
down $231,000 from the first quarter
of 2019 and up $886,000 from the
second quarter of 2018. See "Supplemental Information-
Non-GAAP Financial Measures" at the end of this document.
On June 17, 2019, the Company and Prosperity
Bancshares, Inc.® ("Prosperity") jointly announced
the signing of a definitive merger agreement pursuant to which the
Company will merge with Prosperity. Under the terms of the
merger agreement, shareholders of the Company will receive 0.5280
shares of Prosperity common stock and $6.28 cash for each share of Company common
stock. The completion of the transaction is subject to
certain conditions, including the approval by the Company
shareholders and Prosperity shareholders and customary regulatory
approvals. For additional information regarding the Company's
proposed merger with Prosperity, see the Company's Current Report
filed on Form 8-K with the SEC on June 17,
2019.
"We continue to grow our franchise and serve our customers and
communities," said President and CEO Kevin
Hanigan. "We grew loans by $581.9 million (including Warehouse Purchase
Program) in the second quarter, while our non-interest-bearing
deposits grew by $94.5 million.
Additionally, the talented bankers at both LegacyTexas and
Prosperity Bank have begun the process of preparing for the merger
of the two banks, which we hope to consummate in the fourth quarter
of 2019."
Second Quarter 2019 Performance Highlights
- Assets of $9.94 billion
generated basic earnings per share for the second quarter of 2019
of $0.57 on a GAAP basis and
$0.61 on a core (non-GAAP)
basis.*
- Gross loans held for investment at June 30, 2019, excluding Warehouse Purchase
Program loans, grew $135.3 million,
or 1.9%, from March 31, 2019, which
includes linked-quarter increases in all loan portfolios.
- Warehouse Purchase Program loans at June 30, 2019 grew $446.5
million, or 40.7%, from March 31,
2019.
- The balance of non-interest-bearing demand deposits at
June 30, 2019 increased by
$94.5 million, or 5.4%, from
March 31, 2019, while the average
balance of these deposits for the second quarter of 2019 grew by
$123.1 million, or 7.3%, compared to
the linked quarter.
- Net interest income totaled $85.6
million for the second quarter of 2019, an increase of
$4.4 million, or 5.4%, from the
quarter ended March 31,
2019.
*See the section labeled "Supplemental Information- Non-GAAP
Financial Measures" at the end of this document.
Financial
Highlights
|
|
|
At or For the
Quarters Ended
|
(unaudited)
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
(Dollars in
thousands, except per share amounts)
|
Net interest
income
|
$
|
85,554
|
|
|
$
|
81,164
|
|
|
$
|
83,929
|
|
Provision for credit
losses
|
16,100
|
|
|
9,800
|
|
|
17,478
|
|
Non-interest
income
|
12,232
|
|
|
9,894
|
|
|
10,852
|
|
Non-interest
expense
|
47,526
|
|
|
44,307
|
|
|
42,191
|
|
Income tax
expense
|
7,177
|
|
|
7,871
|
|
|
7,275
|
|
Net income
|
$
|
26,983
|
|
|
$
|
29,080
|
|
|
$
|
27,837
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.57
|
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
Basic core (non-GAAP)
earnings per common share1
|
$
|
0.61
|
|
|
$
|
0.62
|
|
|
$
|
0.59
|
|
Weighted average
common shares outstanding - basic
|
47,383,314
|
|
|
47,246,282
|
|
|
47,000,405
|
|
Estimated Tier 1
common equity risk-based capital ratio2
|
10.48
|
%
|
|
10.92
|
%
|
|
9.78
|
%
|
Total equity to total
assets
|
11.50
|
%
|
|
12.00
|
%
|
|
10.83
|
%
|
Tangible common
equity to tangible assets - Non-GAAP1
|
9.88
|
%
|
|
10.28
|
%
|
|
9.07
|
%
|
|
1
See the section labeled "Supplemental Information - Non-GAAP
Financial Measures" at the end of this document.
|
2
Calculated at the Company level, which is subject to the capital
adequacy requirements of the Federal Reserve.
|
Basic earnings per share for the quarter ended June 30,
2019 was $0.57, a decrease of
$0.04 from the first quarter of 2019
and a decrease of $0.02 from the
second quarter of 2018. Basic core (non-GAAP) earnings per
share for the second quarter of 2019 was $0.61, a decrease of $0.01 from the first quarter of 2019 and an
increase of $0.02 from the second
quarter of 2018.
Net Interest
Income and Net Interest Margin
|
|
|
For the Quarters
Ended
|
(unaudited)
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
Interest
income:
|
(Dollars in
thousands)
|
Loans held for
investment, excluding Warehouse Purchase Program loans
|
$
|
92,903
|
|
|
$
|
91,360
|
|
|
$
|
86,105
|
|
Warehouse Purchase
Program loans
|
14,927
|
|
|
8,771
|
|
|
12,137
|
|
Loans held for
sale
|
324
|
|
|
170
|
|
|
328
|
|
Securities
|
4,553
|
|
|
4,526
|
|
|
4,324
|
|
Interest-earning
deposit accounts
|
1,370
|
|
|
1,277
|
|
|
1,097
|
|
Total interest
income
|
$
|
114,077
|
|
|
$
|
106,104
|
|
|
$
|
103,991
|
|
Net interest
income
|
$
|
85,554
|
|
|
$
|
81,164
|
|
|
$
|
83,929
|
|
Net interest
margin
|
3.77
|
%
|
|
3.89
|
%
|
|
3.93
|
%
|
Selected average
balances:
|
|
|
|
|
|
Total earning
assets
|
$
|
9,091,192
|
|
|
$
|
8,433,085
|
|
|
$
|
8,566,131
|
|
Total loans held for
investment
|
8,158,810
|
|
|
7,528,531
|
|
|
7,636,235
|
|
Total
securities
|
668,948
|
|
|
670,599
|
|
|
667,183
|
|
Total
deposits
|
7,134,996
|
|
|
6,754,156
|
|
|
6,859,944
|
|
Total
borrowings
|
1,101,559
|
|
|
882,061
|
|
|
1,018,945
|
|
Total
non-interest-bearing demand deposits
|
1,812,042
|
|
|
1,688,937
|
|
|
1,694,082
|
|
Total
interest-bearing liabilities
|
6,424,513
|
|
|
5,947,280
|
|
|
6,184,807
|
|
Net interest income for the quarter ended June 30, 2019 was
$85.6 million, a $4.4 million, or 5.4%, increase from the first
quarter of 2019 and a $1.6 million,
or 1.9%, increase from the second quarter of 2018. The
$4.4 million increase from the first
quarter of 2019 was primarily driven by increased volume in
Warehouse Purchase Program and commercial real estate loans
compared to the linked quarter. Interest income earned on
Warehouse Purchase Program loans increased by $6.2 million from the first quarter of 2019, as
the average balance increased by $529.2
million, which was partially offset by a 13 basis point
decrease in the average yield earned compared to the first quarter
of 2019. A $71.1 million
increase in the average balance of the commercial real estate
portfolio from the first quarter of 2019, as well as a three basis
point increase in the average yield, resulted in a $1.6 million increase in interest income.
Interest income earned on the construction and land portfolio
increased by $254,000 from the first
quarter of 2019, as the average balance increased by $9.5 million and the average yield increased by
ten basis points, while interest income earned on the consumer real
estate portfolio increased by $234,000, driven by a $30.5 million linked-quarter increase in the
average balance. The average balance of commercial and
industrial loans decreased by $2.2
million from the first quarter of 2019, resulting in a
$573,000 decrease in interest
income. Interest income on loans for the second quarter of
2019 included $237,000 in accretion
of purchase accounting fair value adjustments on acquired loans,
which primarily consisted of $61,000
on acquired commercial real estate loans, $43,000 on acquired commercial and industrial
loans and $133,000 on acquired
consumer loans.
The $1.6 million increase in net
interest income compared to the second quarter of 2018 was
primarily due to a $9.6 million
increase in interest income on loans, which was driven by higher
yields earned on all loan portfolios, with the exception of the
other consumer loan portfolio and loans held for sale, as well as
increased volume in all loan portfolios. The average balance
of Warehouse Purchase Program loans increased by $178.0 million from the second quarter of 2018,
while the average yield earned on this portfolio increased by 25
basis points, resulting in a $2.8
million increase in interest income compared to the second
quarter of 2018. The average balance of consumer real estate
loans increased by $169.1 million
from the second quarter of 2018, while the average yield earned on
this portfolio increased by 11 basis points, which led to a
$2.4 million increase in interest
income. A $64.0 million
increase in the average balance of commercial real estate loans
compared to the second quarter of 2018, as well as a 12 basis point
increase in the average yield, resulted in a $1.8 million increase in interest income. The
average balance of commercial and industrial loans increased by
$83.3 million from the second quarter
of 2018, while the average yield earned on this portfolio increased
by ten basis points from the same period, resulting in a
$1.7 million increase in interest
income.
Interest expense for the quarter ended June 30, 2019
increased by $3.6 million, or 14.4%,
compared to the linked quarter, which was primarily due to
increases of $108.4 million and
$94.0 million in the average balances
of time and savings and money market deposits, respectively,
compared to the first quarter of 2019, as well as an increase of
$219.5 million in the average balance
of borrowings. Additionally, higher average rates paid on
savings, money market and time deposits also contributed to the
linked-quarter increase in interest expense. A five basis point
decrease in the average rate paid on interest-bearing demand
deposits compared to the linked quarter partially offset a
$55.4 million increase in the average
balance of interest-bearing demand deposits. The average rate
paid on borrowings decreased by 15 basis points from the first
quarter of 2019, which partially offset the linked-quarter increase
in interest expense related to the increase in average borrowing
balances.
Compared to the second quarter of 2018, interest expense for the
quarter ended June 30, 2019 increased by $8.5 million, or 42.2%, primarily due to higher
average savings and money market, time deposit, and borrowing
rates, as well as a $252.5 million
increase in the average balance of time deposits. A 17
basis point decrease in the average rate paid on interest-bearing
demand deposits compared to the second quarter of 2018, as well as
a $99.0 million decrease in the
average balance of these deposits, partially offset these
year-over-year increases in interest expense. A 45 basis
point increase in the average rate paid on borrowings compared to
the second quarter of 2018, as well as an $82.6 million increase in the average balance,
resulted in a $1.7 million
year-over-year increase in interest expense on borrowed funds.
The net interest margin for the second quarter of 2019 was
3.77%, a 12 basis point decrease from the first quarter of 2019 and
a 16 basis point decrease from the second quarter of 2018.
The average yield on earning assets for the second quarter of 2019
was 5.03%, a six basis point decrease from the first quarter of
2019 and a 16 basis point increase from the second quarter of
2018. The cost of deposits for the second quarter of 2019 was
1.15%, up six basis points from the linked quarter and up 35 basis
points from the second quarter of 2018.
Non-interest Income
Non-interest income for the second quarter of 2019 was
$12.2 million, a $2.3 million, or 23.6%, increase from the first
quarter of 2019 and a $1.4 million,
or 12.7%, increase from the second quarter of 2018. Service
charges and other fees increased by $2.6
million compared to the first quarter of 2019, primarily
resulting from higher title company income and commercial loan fee
income (consisting of syndication, arrangement, non-usage and
pre-payment fees), as well as increased debit card interchange and
Warehouse Purchase Program income. Net gains on the sale of
mortgage loans held for sale during the second quarter of 2019
increased by $1.4 million compared to
the linked quarter, which included gains recognized on $74.8 million of consumer real estate loans that
were sold or committed for sale, fair value changes on mortgage
derivatives and mortgage fees collected during the second quarter
of 2019, compared to $32.6 million
for the first quarter of 2019. Other non-interest income for
the second quarter of 2019 included a $1.2
million net decrease in the value of investments in
community development-oriented private equity funds used for
Community Reinvestment Act purposes (the "CRA Funds"), down from a
$21,000 net increase in the CRA Funds
for the first quarter of 2019, as well as a $366,000 interest payment received from the
Internal Revenue Service in the first quarter of 2019 related to a
prior year tax refund, with no comparable payment received in the
second quarter of 2019.
The $1.4 million increase in
non-interest income from the second quarter of 2018 was primarily
due to a $1.2 million increase in net
gains on the sale of mortgage loans held for sale, related to
$74.8 million of consumer real estate
loans that were sold or committed for sale, fair value changes on
mortgage derivatives and mortgage fees collected during the 2019
period, compared to $50.8 million for
the 2018 period. Service charges and other fees increased by
$1.0 million from the second quarter
of 2018, which was driven by higher title company income and
commercial loan fee income (consisting of syndication, arrangement,
non-usage and pre-payment fees), as well as increased debit card
interchange income. Other non-interest income for the second
quarter of 2019 included a $1.2
million net decrease in the CRA Funds, down from a
$15,000 net decrease in the CRA Funds
for the second quarter of 2018.
Non-interest Expenses
Non-interest expense for the second quarter of 2019 was
$47.5 million, up $3.2 million, or 7.3%, from the first quarter of
2019 and up $5.3 million, or 12.6%,
from the second quarter of 2018. The second quarter of 2019
included $2.4 million in merger costs
with no comparable charges in the first quarter of 2019, related to
the proposed merger with Prosperity, which was announced on
June 17, 2019. Outside
professional services expense for the second quarter of 2019
increased by $389,000 from the first
quarter of 2019, primarily due to higher legal expenses, while
other non-interest expense increased by $371,000 from the linked quarter, primarily due
to higher lending and recruiting expenses. These
linked-quarter increases in non-interest expense were partially
offset by a $285,000 decline in
salaries and employee benefits expense from the first quarter of
2019, which was driven by lower share-based compensation expense in
the second quarter of 2019 related to fluctuations in the Company's
share price, as well as decreased payroll taxes related to Social
Security wage base limits starting over at the beginning of the
year, which increased salary expense in the first quarter of
2019. Additionally, in the second quarter of 2019, deferred
salary costs related to loan originations that will be accounted
for over the lives of the related loans increased compared to the
linked quarter, which lowered salary expense for the current
period.
The $5.3 million increase in
non-interest expense from the second quarter of 2018 was primarily
due to $2.4 million in merger costs
with no comparable charges in the second quarter of 2018, related
to the above-mentioned proposed merger with Prosperity, as well as
a $2.3 million increase in salaries
and employee benefits expense, which was primarily related to
higher mortgage commissions paid in the 2019 period attributable to
increased mortgage loan production, as well as higher share-based
compensation expense in the 2019 period related to fluctuations in
the Company's share price. Additionally, merit increases
granted in the 2019 period also contributed to the increased salary
expense compared to the second quarter of 2018. Data
processing expense increased by $594,000 from the second quarter of 2018 due to
system upgrades, technology refreshments and outsourcing certain
segments of its data processing. These increases in non-interest
expense compared to the 2018 period were partially offset by a
$376,000 decrease in advertising
expense, primarily due to a lower number of events, media
advertisements and sponsorships in the second quarter of 2019.
Financial Condition - Loans
Gross loans held for investment at June 30, 2019, excluding
Warehouse Purchase Program loans, grew $135.3 million from March 31, 2019, which
included growth in all loan portfolios. At June 30,
2019, commercial real estate and consumer real estate loans
increased by $57.9 million and
$37.3 million, respectively, from
March 31, 2019, while commercial and industrial and
construction and land loans increased by $32.2 million and $6.0
million, respectively, for the same period.
Compared to June 30, 2018, gross
loans held for investment at June 30, 2019, excluding
Warehouse Purchase Program loans, grew $408.9 million, which included growth in all loan
portfolios. Consumer real estate and commercial real estate
loans increased by $172.7 million and
$159.4 million, respectively, at
June 30, 2019, compared to June 30,
2018, while commercial and industrial loans increased by
$51.0 million from the same
date. Additionally, construction and land and other consumer
loans increased by $22.7 million and
$3.1 million, respectively, compared
to June 30, 2018.
At June 30, 2019, Warehouse Purchase Program loans
increased by $446.5 million compared
to March 31, 2019 and by $251.6
million compared to June 30,
2018.
Reserve-based energy loans, which are secured by deeds of trust
on properties containing proven oil and natural gas reserves and
included in the Company's commercial and industrial loan portfolio,
totaled $518.6 million at
June 30, 2019, up $18.8 million
from $499.8 million at March 31,
2019 and up $31.8 million from
$486.8 million at June 30, 2018. In addition to reserve-based
energy loans, the Company has loans categorized as "Midstream and
Other," which are typically related to the transmission of oil and
natural gas and would only be indirectly impacted by declining
commodity prices. At June 30, 2019, "Midstream and
Other" loans had a total outstanding balance of $20.6 million, down $1.5
million from $22.1 million at
March 31, 2019 and down $8.1
million from $28.7 million at
June 30, 2018.
Financial Condition - Deposits
Total deposits at June 30, 2019 decreased by $21.6 million from March 31, 2019. The
growth in non-interest-bearing demand and savings and money market
deposits of $94.5 million and
$56.7 million, respectively, was more
than offset by declines in time and interest-bearing demand
deposits of $143.4 million and
$29.5 million, respectively.
Compared to June 30, 2018, total
deposits increased by $174.4 million,
which included growth in non-interest-bearing demand and time
deposits of $125.8 million and
$91.9 million, respectively, while
savings and money market and interest-bearing demand deposits
decreased by $31.1 million and
$12.3 million, respectively. At
June 30, 2019, non-interest-bearing demand deposits totaled
26.2% of total deposits, compared to 25.0% of total deposits at
June 30, 2018.
Credit
Quality
|
|
|
At or For the
Quarters Ended
|
(unaudited)
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
(Dollars in
thousands)
|
Net charge-offs
(recoveries)
|
$
|
1,434
|
|
|
$
|
(263)
|
|
|
$
|
27,663
|
|
Net charge-offs
(recoveries)/Average loans held for investment, excluding Warehouse
Purchase Program loans
|
0.08
|
%
|
|
(0.02)
|
%
|
|
1.69
|
%
|
Net charge-offs
(recoveries)/Average loans held for investment
|
0.07
|
|
|
(0.01)
|
|
|
1.45
|
|
Provision for credit
losses
|
$
|
16,100
|
|
|
$
|
9,800
|
|
|
$
|
17,478
|
|
Non-performing loans
("NPLs")
|
62,056
|
|
|
61,028
|
|
|
19,610
|
|
NPLs/Total loans held
for investment, excluding Warehouse Purchase Program
loans
|
0.88
|
%
|
|
0.88
|
%
|
|
0.29
|
%
|
NPLs/Total loans held
for investment
|
0.72
|
|
|
0.76
|
|
|
0.25
|
|
Non-performing assets
("NPAs")
|
$
|
62,640
|
|
|
$
|
61,810
|
|
|
$
|
26,951
|
|
NPAs to total
assets
|
0.63
|
%
|
|
0.66
|
%
|
|
0.29
|
%
|
NPAs/Loans held for
investment and foreclosed assets, excluding Warehouse Purchase
Program loans
|
0.88
|
|
|
0.89
|
|
|
0.40
|
|
NPAs/Loans held for
investment and foreclosed assets
|
0.73
|
|
|
0.77
|
|
|
0.34
|
|
Allowance for loan
losses
|
$
|
92,219
|
|
|
$
|
77,530
|
|
|
$
|
64,445
|
|
Allowance for loan
losses/Total loans held for investment, excluding Warehouse
Purchase Program loans
|
1.30
|
%
|
|
1.12
|
%
|
|
0.97
|
%
|
Allowance for loan
losses/Total loans held for investment
|
1.07
|
|
|
0.96
|
|
|
0.81
|
|
Allowance for loan
losses/Total loans held for investment, excluding acquired loans
& Warehouse Purchase Program loans1
|
1.35
|
|
|
1.16
|
|
|
1.02
|
|
Allowance for loan
losses/NPLs
|
148.61
|
|
|
127.04
|
|
|
328.63
|
|
|
1
Excludes loans acquired in previous bank acquisitions, which were
initially recorded at fair value.
|
The Company recorded a provision for credit losses of
$16.1 million for the quarter ended
June 30, 2019, compared to $9.8
million for the quarter ended March 31, 2019 and
$17.5 million for the quarter ended
June 30, 2018. The increase in
provision expense on a linked-quarter basis was primarily due to
increased specific reserves allocated to the Company's one
remaining corporate healthcare finance relationship, which totaled
$19.9 million at June 30, 2019,
and the Company's impaired energy loans, which totaled $19.9 million at June 30, 2019. These
impaired corporate healthcare finance and energy loans have been
included in the estimated pre-tax gross credit mark of $175.0 million that was disclosed as an
assumption in the merger with Prosperity, as reported in the
Company's investor presentation filed under a Current Report on
Form 8-K with the SEC on June 17,
2019.
The decrease in provision expense on a year-over-year basis was
primarily due to decreased net charge-offs during the quarter ended
June 30, 2019. Net charge-offs totaled $1.4 million for the three months ended
June 30, 2019, compared to net charge-offs totaling
$27.7 million for the three months
ended June 30, 2018.
The below table shows criticized (rated "special mention") and
classified (rated "substandard" or "doubtful") loans at
June 30, 2019, March 31, 2019 and June 30, 2018.
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
Linked-Quarter
Change
|
|
Year-over-Year
Change
|
|
(Dollars in
thousands)
|
Commercial real
estate
|
$
|
18,074
|
|
|
$
|
20,561
|
|
|
$
|
25,540
|
|
|
$
|
(2,487)
|
|
|
$
|
(7,466)
|
|
Commercial and
industrial, excluding energy
|
9,275
|
|
|
8,631
|
|
|
11,065
|
|
|
644
|
|
|
(1,790)
|
|
Energy
|
44,644
|
|
|
48,434
|
|
|
24,975
|
|
|
(3,790)
|
|
|
19,669
|
|
Consumer
|
2,711
|
|
|
2,761
|
|
|
1,501
|
|
|
(50)
|
|
|
1,210
|
|
Total criticized
(all performing)
|
$
|
74,704
|
|
|
$
|
80,387
|
|
|
$
|
63,081
|
|
|
$
|
(5,683)
|
|
|
$
|
11,623
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
1,421
|
|
|
$
|
1,442
|
|
|
$
|
3,846
|
|
|
$
|
(21)
|
|
|
$
|
(2,425)
|
|
Commercial and
industrial, excluding energy
|
869
|
|
|
1,000
|
|
|
1,234
|
|
|
(131)
|
|
|
(365)
|
|
Energy
|
70,775
|
|
|
46,095
|
|
|
28,804
|
|
|
24,680
|
|
|
41,971
|
|
Consumer
|
2,688
|
|
|
1,316
|
|
|
1,993
|
|
|
1,372
|
|
|
695
|
|
Total classified
(performing)
|
75,753
|
|
|
49,853
|
|
|
35,877
|
|
|
25,900
|
|
|
39,876
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
7,293
|
|
|
6,623
|
|
|
3,656
|
|
|
670
|
|
|
3,637
|
|
Commercial and
industrial, excluding energy
|
28,471
|
|
|
27,395
|
|
|
8,860
|
|
|
1,076
|
|
|
19,611
|
|
Energy
|
19,896
|
|
|
21,866
|
|
|
1,365
|
|
|
(1,970)
|
|
|
18,531
|
|
Construction and
land
|
228
|
|
|
—
|
|
|
—
|
|
|
228
|
|
|
228
|
|
Consumer
|
6,168
|
|
|
5,144
|
|
|
5,729
|
|
|
1,024
|
|
|
439
|
|
Total classified
(non-performing)
|
62,056
|
|
|
61,028
|
|
|
19,610
|
|
|
1,028
|
|
|
42,446
|
|
|
|
|
|
|
|
|
|
|
|
Total classified
loans
|
$
|
137,809
|
|
|
$
|
110,881
|
|
|
$
|
55,487
|
|
|
$
|
26,928
|
|
|
$
|
82,322
|
|
About LegacyTexas Financial Group, Inc.
LegacyTexas Financial Group, Inc. is the holding company for
LegacyTexas Bank, a commercially oriented community bank based in
Plano, Texas. LegacyTexas Bank
operates 42 banking offices in the Dallas/Fort Worth Metroplex and
surrounding counties. For more information, please visit
www.LegacyTexasFinancialGroup.com or www.LegacyTexas.com.
This document and other filings by LegacyTexas Financial
Group, Inc. (the "Company") with the Securities and
Exchange Commission (the "SEC"), as well as press
releases or other public or stockholder communications released by
the Company, may contain forward-looking statements, including, but
not limited to, (i) statements regarding the financial
condition, results of operations and business of the Company,
(ii) statements about the Company's plans, objectives,
expectations and intentions and other statements that are not
historical facts and (iii) other statements identified by the
words or phrases "will likely result," "are expected
to," "will continue," "is anticipated,"
"estimate," "project," "intends" or similar
expressions that are intended to identify "forward-looking
statements", within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on current beliefs and expectations of the Company's
management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are beyond the Company's control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change.
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: the
expected cost savings, synergies and other financial benefits from
our proposed merger with Prosperity might not be realized within
the expected time frames or at all and costs or difficulties
relating to integration matters might be greater than expected; the
requisite shareholder and regulatory approvals and other closing
conditions for the proposed merger of the Company and Prosperity
may be delayed or may not be obtained or the merger agreement may
be terminated; business disruption may occur following or in
connection with the proposed merger of the Company and Prosperity;
the Company's businesses may experience disruptions due to
transaction-related uncertainty or other factors making it more
difficult to maintain relationships with employees, customers,
other business partners or governmental entities; the diversion of
managements' attention from ongoing business operations and
opportunities as a result of the proposed merger or otherwise;
changes in economic conditions; legislative changes; changes in
policies by regulatory agencies; fluctuations in interest rates;
the risks of lending and investing activities, including changes in
the level and direction of loan delinquencies and write-offs and
changes in estimates of the adequacy of the allowance for loan
losses; the Company's ability to access cost-effective funding;
fluctuations in real estate values and both residential and
commercial real estate market conditions; demand for loans and
deposits in the Company's market area; fluctuations in the price of
oil, natural gas and other commodities; competition; changes in
management's business strategies; changes in the regulatory and tax
environments in which the Company operates, including the impact of
the "Tax Cuts and Jobs Act" (the "TCJA") on the
Company's deferred tax asset, and the anticipated impact of the
TCJA on the Company's future earnings; and other factors set forth
in the Company's filings with the SEC.
The factors listed above could materially affect the
Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in
any current statements.
The Company does not undertake - and specifically declines
any obligation - to publicly release the result of any revisions
which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events. When
considering forward-looking statements, keep in mind these risks
and uncertainties. Undue reliance should not be placed on any
forward-looking statement, which speaks only as of the date made.
Refer to the Company's periodic and current reports filed with the
SEC for specific risks that could cause actual results to be
significantly different from those expressed or implied by any
forward-looking statements.
Additional Information About the Merger and Where to Find
It
In connection with the proposed merger of the Company into
Prosperity, Prosperity will file with the SEC a registration
statement on Form S-4 to register the shares of Prosperity Common
Stock to be issued to the stockholders of the Company. The
registration statement will include a joint proxy
statement/prospectus which will be sent to the stockholders of the
Company and Prosperity seeking their approval of the proposed
transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION
STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS
INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY
OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION
WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT PROSPERITY, THE COMPANY AND THE PROPOSED
TRANSACTION.
Investors and security holders may obtain free copies of these
documents through the website maintained by the SEC at
http://www.sec.gov. Documents filed with the SEC by Prosperity will
be available free of charge by directing a request by telephone or
mail to Prosperity Bancshares, Inc., Prosperity Bank Plaza, 4295
San Felipe, Houston, Texas 77027
Attn: Investor Relations, 281-269-7199 and documents filed with the
SEC by the Company will be available free of charge by directing a
request by telephone or mail to LegacyTexas Financial Group, Inc.,
5851 Legacy Circle, Suite 1200, Plano,
Texas 75024, 972-578-5000.
Participants in the Solicitation
Prosperity, the Company and their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of Prosperity and
stockholders of the Company in connection with the proposed
transaction. Certain information regarding the interests of these
participants and a description of their direct and indirect
interests, by security holdings or otherwise, will be included in
the joint proxy statement/prospectus regarding the proposed
transaction when it becomes available. Additional information about
Prosperity and its directors and executive officers may be found in
the definitive proxy statement of Prosperity relating to its 2019
Annual Meeting of Shareholders filed with the SEC on March 14, 2019, and other documents filed by
Prosperity with the SEC. Additional information about the Company
and its directors and executive officers may be found in the
definitive proxy statement of the Company relating to its 2019
Annual Meeting of Stockholders filed with the SEC on April 12, 2019, and other documents filed by the
Company with the SEC. These documents can be obtained free of
charge from the sources described above.
No Offer or Solicitation
This communication is for informational purposes only and is not
intended to and does not constitute an offer to subscribe for, buy
or sell, or the solicitation of an offer to subscribe for, buy or
sell, or an invitation to subscribe for, buy or sell any securities
or a solicitation of any vote or approval in any jurisdiction, nor
shall there be any sale, issuance or transfer of securities in any
jurisdiction in which such offer, invitation, sale or solicitation
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended, and otherwise in accordance with applicable law.
LegacyTexas
Financial Group, Inc. Consolidated Balance Sheets
(unaudited)
|
|
(Dollars in
thousands)
ASSETS
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
Cash and due from
financial institutions
|
$
|
56,949
|
|
|
$
|
55,472
|
|
|
$
|
60,416
|
|
|
$
|
64,681
|
|
|
$
|
60,104
|
|
Short-term
interest-bearing deposits in other financial
institutions
|
206,894
|
|
|
219,051
|
|
|
208,777
|
|
|
189,634
|
|
|
199,807
|
|
Total cash and cash
equivalents
|
263,843
|
|
|
274,523
|
|
|
269,193
|
|
|
254,315
|
|
|
259,911
|
|
Securities available
for sale, at fair value
|
459,749
|
|
|
479,426
|
|
|
471,746
|
|
|
455,454
|
|
|
445,613
|
|
Securities held to
maturity
|
127,836
|
|
|
135,276
|
|
|
146,046
|
|
|
145,148
|
|
|
155,252
|
|
Total
securities
|
587,585
|
|
|
614,702
|
|
|
617,792
|
|
|
600,602
|
|
|
600,865
|
|
Loans held for
sale
|
46,571
|
|
|
11,380
|
|
|
23,193
|
|
|
22,175
|
|
|
33,548
|
|
Loans held for
investment:
|
|
|
|
|
|
|
|
|
|
Loans held for
investment - Warehouse Purchase Program
|
1,542,684
|
|
|
1,096,160
|
|
|
960,404
|
|
|
1,054,505
|
|
|
1,291,129
|
|
Loans held for
investment
|
7,080,075
|
|
|
6,944,731
|
|
|
6,790,723
|
|
|
6,764,052
|
|
|
6,671,139
|
|
Gross
loans
|
8,669,330
|
|
|
8,052,271
|
|
|
7,774,320
|
|
|
7,840,732
|
|
|
7,995,816
|
|
Less: allowance for
loan losses and deferred fees on loans held for
investment
|
(80,468)
|
|
|
(66,712)
|
|
|
(57,031)
|
|
|
(56,499)
|
|
|
(55,321)
|
|
Net loans
|
8,588,862
|
|
|
7,985,559
|
|
|
7,717,289
|
|
|
7,784,233
|
|
|
7,940,495
|
|
FHLB stock and other
restricted securities, at cost
|
79,195
|
|
|
56,044
|
|
|
56,226
|
|
|
60,596
|
|
|
66,061
|
|
Bank-owned life
insurance
|
59,724
|
|
|
59,377
|
|
|
59,036
|
|
|
58,692
|
|
|
58,345
|
|
Premises and
equipment, net
|
106,313
|
|
|
107,684
|
|
|
73,073
|
|
|
72,291
|
|
|
70,893
|
|
Goodwill
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
|
178,559
|
|
Other
assets
|
71,853
|
|
|
69,624
|
|
|
79,974
|
|
|
73,504
|
|
|
73,957
|
|
Total
assets
|
$
|
9,935,934
|
|
|
$
|
9,346,072
|
|
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Non-interest-bearing
demand
|
$
|
1,847,229
|
|
|
$
|
1,752,694
|
|
|
$
|
1,773,762
|
|
|
$
|
1,798,109
|
|
|
$
|
1,721,380
|
|
Interest-bearing
demand
|
855,026
|
|
|
884,494
|
|
|
826,755
|
|
|
780,474
|
|
|
867,323
|
|
Savings and money
market
|
2,548,966
|
|
|
2,492,226
|
|
|
2,455,787
|
|
|
2,562,399
|
|
|
2,580,017
|
|
Time
|
1,804,569
|
|
|
1,948,011
|
|
|
1,785,411
|
|
|
1,638,776
|
|
|
1,712,628
|
|
Total
deposits
|
7,055,790
|
|
|
7,077,425
|
|
|
6,841,715
|
|
|
6,779,758
|
|
|
6,881,348
|
|
FHLB
advances
|
1,384,765
|
|
|
820,084
|
|
|
825,409
|
|
|
932,317
|
|
|
1,065,941
|
|
Repurchase
agreements
|
52,414
|
|
|
37,277
|
|
|
50,340
|
|
|
40,408
|
|
|
41,330
|
|
Subordinated
debt
|
135,257
|
|
|
135,135
|
|
|
135,012
|
|
|
134,890
|
|
|
134,767
|
|
Accrued expenses and
other liabilities
|
165,063
|
|
|
155,064
|
|
|
104,299
|
|
|
155,820
|
|
|
124,250
|
|
Total
liabilities
|
8,793,289
|
|
|
8,224,985
|
|
|
7,956,775
|
|
|
8,043,193
|
|
|
8,247,636
|
|
Common
stock
|
488
|
|
|
487
|
|
|
485
|
|
|
485
|
|
|
483
|
|
Additional paid-in
capital
|
628,730
|
|
|
625,405
|
|
|
619,983
|
|
|
617,270
|
|
|
611,967
|
|
Retained
earnings
|
523,693
|
|
|
508,887
|
|
|
491,948
|
|
|
444,848
|
|
|
409,765
|
|
Accumulated other
comprehensive income (loss), net
|
860
|
|
|
(2,433)
|
|
|
(6,658)
|
|
|
(11,481)
|
|
|
(9,109)
|
|
Unearned Employee
Stock Ownership Plan (ESOP) shares
|
(11,126)
|
|
|
(11,259)
|
|
|
(11,391)
|
|
|
(11,523)
|
|
|
(11,656)
|
|
Total shareholders'
equity
|
1,142,645
|
|
|
1,121,087
|
|
|
1,094,367
|
|
|
1,039,599
|
|
|
1,001,450
|
|
Total liabilities and
shareholders' equity
|
$
|
9,935,934
|
|
|
$
|
9,346,072
|
|
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
LegacyTexas
Financial Group, Inc.
|
Consolidated
Quarterly Statements of Income (unaudited)
|
|
|
For the Quarters
Ended
|
|
Second Quarter 2019
Compared to:
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
First
Quarter
2019
|
|
Second Quarter
2018
|
Interest and
dividend income
|
|
(Dollars in
thousands)
|
|
|
|
Loans, including
fees
|
$
|
108,154
|
|
|
$
|
100,301
|
|
|
$
|
101,031
|
|
|
$
|
102,267
|
|
|
$
|
98,570
|
|
|
$
|
7,853
|
|
7.8
|
%
|
|
$
|
9,584
|
|
9.7
|
%
|
Taxable
securities
|
3,460
|
|
|
3,602
|
|
|
3,463
|
|
|
3,254
|
|
|
3,132
|
|
|
(142)
|
|
(3.9)
|
|
|
328
|
|
10.5
|
|
Nontaxable
securities
|
410
|
|
|
343
|
|
|
595
|
|
|
614
|
|
|
641
|
|
|
67
|
|
19.5
|
|
|
(231)
|
|
(36.0)
|
|
Interest-bearing
deposits in other financial institutions
|
1,370
|
|
|
1,277
|
|
|
1,507
|
|
|
1,368
|
|
|
1,097
|
|
|
93
|
|
7.3
|
|
|
273
|
|
24.9
|
|
FHLB and Federal
Reserve Bank stock and other
|
683
|
|
|
581
|
|
|
582
|
|
|
644
|
|
|
551
|
|
|
102
|
|
17.6
|
|
|
132
|
|
24.0
|
|
|
114,077
|
|
|
106,104
|
|
|
107,178
|
|
|
108,147
|
|
|
103,991
|
|
|
7,973
|
|
7.5
|
|
|
10,086
|
|
9.7
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
20,444
|
|
|
18,215
|
|
|
16,634
|
|
|
15,077
|
|
|
13,732
|
|
|
2,229
|
|
12.2
|
|
|
6,712
|
|
48.9
|
|
FHLB
advances
|
5,794
|
|
|
4,456
|
|
|
4,000
|
|
|
5,198
|
|
|
4,131
|
|
|
1,338
|
|
30.0
|
|
|
1,663
|
|
40.3
|
|
Repurchase agreements
and other borrowings
|
2,285
|
|
|
2,269
|
|
|
2,245
|
|
|
2,205
|
|
|
2,199
|
|
|
16
|
|
0.7
|
|
|
86
|
|
3.9
|
|
|
28,523
|
|
|
24,940
|
|
|
22,879
|
|
|
22,480
|
|
|
20,062
|
|
|
3,583
|
|
14.4
|
|
|
8,461
|
|
42.2
|
|
Net interest
income
|
85,554
|
|
|
81,164
|
|
|
84,299
|
|
|
85,667
|
|
|
83,929
|
|
|
4,390
|
|
5.4
|
|
|
1,625
|
|
1.9
|
|
Provision for credit
losses
|
16,100
|
|
|
9,800
|
|
|
—
|
|
|
2,656
|
|
|
17,478
|
|
|
6,300
|
|
64.3
|
|
|
(1,378)
|
|
(7.9)
|
|
Net interest
income after provision for credit losses
|
69,454
|
|
|
71,364
|
|
|
84,299
|
|
|
83,011
|
|
|
66,451
|
|
|
(1,910)
|
|
(2.7)
|
|
|
3,003
|
|
4.5
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
other fees
|
9,882
|
|
|
7,255
|
|
|
9,923
|
|
|
8,626
|
|
|
8,844
|
|
|
2,627
|
|
36.2
|
|
|
1,038
|
|
11.7
|
|
Net gain on sale of
mortgage loans held for sale
|
2,879
|
|
|
1,525
|
|
|
1,499
|
|
|
1,597
|
|
|
1,668
|
|
|
1,354
|
|
88.8
|
|
|
1,211
|
|
72.6
|
|
Bank-owned life
insurance income
|
489
|
|
|
482
|
|
|
482
|
|
|
482
|
|
|
479
|
|
|
7
|
|
1.5
|
|
|
10
|
|
2.1
|
|
Net gain (loss) on
securities transactions
|
—
|
|
|
6
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
|
(6)
|
|
(100.0)
|
|
|
—
|
|
—
|
|
Gain (loss) on sale
and disposition of assets
|
18
|
|
|
(14)
|
|
|
(56)
|
|
|
977
|
|
|
(153)
|
|
|
32
|
|
N/M
|
|
|
171
|
|
N/M
|
|
Other
|
(1,036)
|
|
|
640
|
|
|
416
|
|
|
1,555
|
|
|
14
|
|
|
(1,676)
|
|
N/M
|
|
|
(1,050)
|
|
N/M
|
|
|
12,232
|
|
|
9,894
|
|
|
12,264
|
|
|
13,227
|
|
|
10,852
|
|
|
2,338
|
|
23.6
|
|
|
1,380
|
|
12.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
(Dollars in
thousands)
|
|
Salaries and employee
benefits
|
26,586
|
|
|
26,871
|
|
|
23,728
|
|
|
25,053
|
|
|
24,313
|
|
|
(285)
|
|
(1.1)
|
|
|
2,273
|
|
9.3
|
|
Merger
costs
|
2,362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,362
|
|
100.0
|
|
|
2,362
|
|
100.0
|
|
Advertising
|
982
|
|
|
903
|
|
|
1,301
|
|
|
824
|
|
|
1,358
|
|
|
79
|
|
8.7
|
|
|
(376)
|
|
(27.7)
|
|
Occupancy and
equipment
|
3,950
|
|
|
3,899
|
|
|
3,843
|
|
|
3,960
|
|
|
3,980
|
|
|
51
|
|
1.3
|
|
|
(30)
|
|
(0.8)
|
|
Outside professional
services
|
1,674
|
|
|
1,285
|
|
|
2,021
|
|
|
1,151
|
|
|
1,382
|
|
|
389
|
|
30.3
|
|
|
292
|
|
21.1
|
|
Regulatory
assessments
|
831
|
|
|
618
|
|
|
886
|
|
|
750
|
|
|
731
|
|
|
213
|
|
34.5
|
|
|
100
|
|
13.7
|
|
Data
processing
|
5,739
|
|
|
5,933
|
|
|
6,168
|
|
|
5,362
|
|
|
5,145
|
|
|
(194)
|
|
(3.3)
|
|
|
594
|
|
11.5
|
|
Office
operations
|
2,568
|
|
|
2,335
|
|
|
2,249
|
|
|
2,232
|
|
|
2,224
|
|
|
233
|
|
10.0
|
|
|
344
|
|
15.5
|
|
Other
|
2,834
|
|
|
2,463
|
|
|
2,672
|
|
|
2,860
|
|
|
3,058
|
|
|
371
|
|
15.1
|
|
|
(224)
|
|
(7.3)
|
|
|
47,526
|
|
|
44,307
|
|
|
42,868
|
|
|
42,192
|
|
|
42,191
|
|
|
3,219
|
|
7.3
|
|
|
5,335
|
|
12.6
|
|
Income before
income tax expense (benefit)
|
34,160
|
|
|
36,951
|
|
|
53,695
|
|
|
54,046
|
|
|
35,112
|
|
|
(2,791)
|
|
(7.6)
|
|
|
(952)
|
|
(2.7)
|
|
Income tax expense
(benefit)
|
7,177
|
|
|
7,871
|
|
|
(4,074)
|
|
|
11,225
|
|
|
7,275
|
|
|
(694)
|
|
(8.8)
|
|
|
(98)
|
|
(1.3)
|
|
Net
income
|
$
|
26,983
|
|
|
$
|
29,080
|
|
|
$
|
57,769
|
|
|
$
|
42,821
|
|
|
$
|
27,837
|
|
|
$
|
(2,097)
|
|
(7.2)
|
%
|
|
$
|
(854)
|
|
(3.1)
|
%
|
LegacyTexas
Financial Group, Inc.
|
Selected Quarterly
Financial Highlights (unaudited)
|
|
|
At or For the
Quarters Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
SHARE
DATA:
|
(Dollars in
thousands, except per share amounts)
|
Weighted average
common shares outstanding - basic
|
47,383,314
|
|
|
47,246,282
|
|
|
47,000,405
|
|
Weighted average
common shares outstanding - diluted
|
47,923,391
|
|
|
47,835,693
|
|
|
47,618,157
|
|
Shares outstanding at
end of period
|
48,833,238
|
|
|
48,704,070
|
|
|
48,311,220
|
|
Income available to
common shareholders1
|
$
|
26,837
|
|
|
$
|
28,955
|
|
|
$
|
27,770
|
|
Basic earnings per
common share
|
0.57
|
|
|
0.61
|
|
|
0.59
|
|
Basic core (non-GAAP)
earnings per common share2
|
0.61
|
|
|
0.62
|
|
|
0.59
|
|
Diluted earnings per
common share
|
0.56
|
|
|
0.61
|
|
|
0.58
|
|
Dividends declared
per share
|
0.25
|
|
|
0.25
|
|
|
0.16
|
|
Total shareholders'
equity
|
1,142,645
|
|
|
1,121,087
|
|
|
1,001,450
|
|
Common shareholders'
equity per share (book value per share)
|
23.40
|
|
|
23.02
|
|
|
20.73
|
|
Tangible book value
per share - Non-GAAP2
|
19.74
|
|
|
19.35
|
|
|
17.03
|
|
Market value per
share for the quarter:
|
|
|
|
|
|
High
|
41.22
|
|
|
43.88
|
|
|
43.92
|
|
Low
|
36.50
|
|
|
33.08
|
|
|
38.80
|
|
Close
|
40.71
|
|
|
37.39
|
|
|
39.02
|
|
KEY
RATIOS:
|
|
|
|
|
|
Return on average
common shareholders' equity
|
9.52
|
%
|
|
10.50
|
%
|
|
11.20
|
%
|
Core (non-GAAP)
return on average common shareholders'
equity2
|
10.18
|
|
|
10.50
|
|
|
11.25
|
|
Return on average
assets
|
1.13
|
|
|
1.31
|
|
|
1.24
|
|
Core (non-GAAP)
return on average assets2
|
1.21
|
|
|
1.31
|
|
|
1.24
|
|
Efficiency ratio
(GAAP basis)
|
48.60
|
|
|
48.66
|
|
|
44.51
|
|
Core (non-GAAP)
efficiency ratio2
|
46.19
|
|
|
48.66
|
|
|
44.44
|
|
Estimated Tier 1
common equity risk-based capital ratio3
|
10.48
|
|
|
10.92
|
|
|
9.78
|
|
Estimated total
risk-based capital ratio3
|
12.97
|
|
|
13.39
|
|
|
12.14
|
|
Estimated Tier 1
risk-based capital ratio3
|
10.62
|
|
|
11.06
|
|
|
9.93
|
|
Estimated Tier 1
leverage ratio3
|
10.42
|
|
|
10.98
|
|
|
9.56
|
|
Total equity to total
assets
|
11.50
|
|
|
12.00
|
|
|
10.83
|
|
Tangible equity to
tangible assets - Non-GAAP2
|
9.88
|
|
|
10.28
|
|
|
9.07
|
|
Number of employees -
full-time equivalent
|
883
|
|
|
875
|
|
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Net of distributed and undistributed earnings to participating
securities.
|
2
See the section labeled "Supplemental Information - Non-GAAP
Financial Measures" at the end of this document.
|
3
Calculated at the Company level, which is subject to the capital
adequacy requirements of the Federal Reserve.
|
LegacyTexas
Financial Group, Inc.
|
Selected Loan Data
(unaudited)
|
|
|
At or for the Quarter
Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
Loans held for
investment:
|
(Dollars in
thousands)
|
|
|
Commercial real
estate
|
$
|
3,180,582
|
|
|
$
|
3,122,726
|
|
|
$
|
3,026,754
|
|
|
$
|
3,012,352
|
|
|
$
|
3,021,148
|
|
Warehouse Purchase
Program
|
1,542,684
|
|
|
1,096,160
|
|
|
960,404
|
|
|
1,054,505
|
|
|
1,291,129
|
|
Commercial and
industrial
|
2,102,917
|
|
|
2,070,715
|
|
|
2,057,791
|
|
|
2,111,510
|
|
|
2,051,955
|
|
Construction and
land
|
288,491
|
|
|
282,463
|
|
|
270,629
|
|
|
278,278
|
|
|
265,745
|
|
Consumer real
estate
|
1,460,417
|
|
|
1,423,095
|
|
|
1,390,378
|
|
|
1,318,038
|
|
|
1,287,703
|
|
Other
consumer
|
47,668
|
|
|
45,732
|
|
|
45,171
|
|
|
43,874
|
|
|
44,588
|
|
Gross loans held for
investment
|
$
|
8,622,759
|
|
|
$
|
8,040,891
|
|
|
$
|
7,751,127
|
|
|
$
|
7,818,557
|
|
|
$
|
7,962,268
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
7,293
|
|
|
$
|
6,623
|
|
|
$
|
159
|
|
|
$
|
3,739
|
|
|
$
|
3,656
|
|
Commercial and
industrial
|
48,367
|
|
|
49,261
|
|
|
16,710
|
|
|
7,178
|
|
|
10,225
|
|
Construction and
land
|
228
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consumer real
estate
|
6,144
|
|
|
5,123
|
|
|
5,506
|
|
|
6,617
|
|
|
5,652
|
|
Other
consumer
|
24
|
|
|
21
|
|
|
46
|
|
|
50
|
|
|
77
|
|
Total non-performing
loans
|
62,056
|
|
|
61,028
|
|
|
22,421
|
|
|
17,584
|
|
|
19,610
|
|
Foreclosed
assets
|
584
|
|
|
782
|
|
|
1,333
|
|
|
698
|
|
|
7,341
|
|
Total non-performing
assets
|
$
|
62,640
|
|
|
$
|
61,810
|
|
|
$
|
23,754
|
|
|
$
|
18,282
|
|
|
$
|
26,951
|
|
Total non-performing
assets to total assets
|
0.63
|
%
|
|
0.66
|
%
|
|
0.26
|
%
|
|
0.20
|
%
|
|
0.29
|
%
|
Total non-performing
loans to total loans held for investment, excluding Warehouse
Purchase Program loans
|
0.88
|
%
|
|
0.88
|
%
|
|
0.33
|
%
|
|
0.26
|
%
|
|
0.29
|
%
|
Total non-performing
loans to total loans held for investment
|
0.72
|
%
|
|
0.76
|
%
|
|
0.29
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
Allowance for loan
losses to non-performing loans
|
148.61
|
%
|
|
127.04
|
%
|
|
300.74
|
%
|
|
377.35
|
%
|
|
328.63
|
%
|
Allowance for loan
losses to total loans held for investment, excluding Warehouse
Purchase Program loans
|
1.30
|
%
|
|
1.12
|
%
|
|
0.99
|
%
|
|
0.98
|
%
|
|
0.97
|
%
|
Allowance for loan
losses to total loans held for investment
|
1.07
|
%
|
|
0.96
|
%
|
|
0.87
|
%
|
|
0.85
|
%
|
|
0.81
|
%
|
Allowance for loan
losses to total loans held for investment, excluding acquired loans
and Warehouse Purchase Program loans 1
|
1.35
|
%
|
|
1.16
|
%
|
|
1.04
|
%
|
|
1.03
|
%
|
|
1.02
|
%
|
Troubled debt
restructured loans ("TDRs"):
|
(Dollars in
thousands)
|
|
|
Performing
TDRs:
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
132
|
|
|
$
|
134
|
|
|
$
|
136
|
|
|
$
|
139
|
|
|
$
|
141
|
|
Consumer real
estate
|
704
|
|
|
722
|
|
|
788
|
|
|
786
|
|
|
561
|
|
Other
consumer
|
1
|
|
|
1
|
|
|
2
|
|
|
4
|
|
|
9
|
|
Total performing
TDRs
|
$
|
837
|
|
|
$
|
857
|
|
|
$
|
926
|
|
|
$
|
929
|
|
|
$
|
711
|
|
Non-performing
TDRs:2
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
27
|
|
|
$
|
29
|
|
|
$
|
31
|
|
|
$
|
3,605
|
|
|
$
|
33
|
|
Commercial and
industrial
|
7,870
|
|
|
7,999
|
|
|
661
|
|
|
2,299
|
|
|
2,095
|
|
Consumer real
estate
|
1,037
|
|
|
447
|
|
|
467
|
|
|
495
|
|
|
789
|
|
Other
consumer
|
4
|
|
|
4
|
|
|
1
|
|
|
2
|
|
|
7
|
|
Total non-performing
TDRs
|
$
|
8,938
|
|
|
$
|
8,479
|
|
|
$
|
1,160
|
|
|
$
|
6,401
|
|
|
$
|
2,924
|
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
77,530
|
|
|
$
|
67,428
|
|
|
$
|
66,354
|
|
|
$
|
64,445
|
|
|
$
|
74,508
|
|
Provision expense for
loans
|
16,123
|
|
|
9,839
|
|
|
—
|
|
|
2,700
|
|
|
17,600
|
|
Charge-offs
|
(1,624)
|
|
|
(359)
|
|
|
(2,590)
|
|
|
(922)
|
|
|
(27,737)
|
|
Recoveries
|
190
|
|
|
622
|
|
|
3,664
|
|
|
131
|
|
|
74
|
|
Balance at end of
period
|
$
|
92,219
|
|
|
$
|
77,530
|
|
|
$
|
67,428
|
|
|
$
|
66,354
|
|
|
$
|
64,445
|
|
Net charge-offs
(recoveries):
|
|
|
|
|
|
|
Commercial real
estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
236
|
|
Commercial and
industrial
|
1,236
|
|
|
(463)
|
|
|
(1,355)
|
|
|
537
|
|
|
27,261
|
|
Consumer real
estate
|
(4)
|
|
|
3
|
|
|
37
|
|
|
47
|
|
|
(9)
|
|
Other
consumer
|
202
|
|
|
197
|
|
|
244
|
|
|
207
|
|
|
175
|
|
Total net charge-offs
(recoveries)
|
$
|
1,434
|
|
|
$
|
(263)
|
|
|
$
|
(1,074)
|
|
|
$
|
791
|
|
|
$
|
27,663
|
|
Allowance for
off-balance sheet lending-related commitments
|
|
|
|
|
Provision expense
(benefit) for credit losses
|
$
|
(23)
|
|
|
$
|
(39)
|
|
|
$
|
—
|
|
|
$
|
(44)
|
|
|
$
|
(122)
|
|
|
1
Excludes loans acquired in previous bank acquisitions, which were
initially recorded at fair value.
|
2
Non-performing TDRs are included in the non-performing assets
reported above.
|
LegacyTexas
Financial Group, Inc.
|
Average Balances
and Yields/Rates (unaudited)
|
|
|
For the Quarters
Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
Loans:
|
(Dollars in
thousands)
|
Commercial real
estate
|
$
|
3,119,147
|
|
|
$
|
3,048,087
|
|
|
$
|
2,977,919
|
|
|
$
|
3,016,889
|
|
|
$
|
3,055,139
|
|
Warehouse Purchase
Program
|
1,253,262
|
|
|
724,070
|
|
|
864,012
|
|
|
1,097,879
|
|
|
1,075,262
|
|
Commercial and
industrial
|
2,085,820
|
|
|
2,088,056
|
|
|
2,024,676
|
|
|
2,088,318
|
|
|
2,002,490
|
|
Construction and
land
|
286,163
|
|
|
276,642
|
|
|
272,631
|
|
|
271,829
|
|
|
260,560
|
|
Consumer real
estate
|
1,434,812
|
|
|
1,404,292
|
|
|
1,327,912
|
|
|
1,295,353
|
|
|
1,265,751
|
|
Other
consumer
|
47,014
|
|
|
45,339
|
|
|
44,559
|
|
|
44,508
|
|
|
43,779
|
|
Less: deferred fees
and allowance for loan loss
|
(67,408)
|
|
|
(57,955)
|
|
|
(56,899)
|
|
|
(55,974)
|
|
|
(66,746)
|
|
Total loans held for
investment
|
8,158,810
|
|
|
7,528,531
|
|
|
7,454,810
|
|
|
7,758,802
|
|
|
7,636,235
|
|
Loans held for
sale
|
30,572
|
|
|
15,347
|
|
|
24,279
|
|
|
26,121
|
|
|
29,378
|
|
Securities
|
668,948
|
|
|
670,599
|
|
|
667,939
|
|
|
678,483
|
|
|
667,183
|
|
Overnight
deposits
|
232,862
|
|
|
218,608
|
|
|
266,434
|
|
|
272,670
|
|
|
233,335
|
|
Total
interest-earning assets
|
$
|
9,091,192
|
|
|
$
|
8,433,085
|
|
|
$
|
8,413,462
|
|
|
$
|
8,736,076
|
|
|
$
|
8,566,131
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$
|
855,948
|
|
|
$
|
800,557
|
|
|
$
|
775,921
|
|
|
$
|
760,889
|
|
|
$
|
954,960
|
|
Savings and money
market
|
2,581,816
|
|
|
2,487,833
|
|
|
2,532,732
|
|
|
2,654,990
|
|
|
2,578,205
|
|
Time
|
1,885,190
|
|
|
1,776,829
|
|
|
1,703,421
|
|
|
1,683,475
|
|
|
1,632,697
|
|
FHLB advances and
other borrowings
|
1,101,559
|
|
|
882,061
|
|
|
851,084
|
|
|
1,154,079
|
|
|
1,018,945
|
|
Total
interest-bearing liabilities
|
$
|
6,424,513
|
|
|
$
|
5,947,280
|
|
|
$
|
5,863,158
|
|
|
$
|
6,253,433
|
|
|
$
|
6,184,807
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
9,540,365
|
|
|
$
|
8,891,059
|
|
|
$
|
8,850,435
|
|
|
$
|
9,167,607
|
|
|
$
|
8,996,036
|
|
Non-interest-bearing
demand deposits
|
$
|
1,812,042
|
|
|
$
|
1,688,937
|
|
|
$
|
1,778,681
|
|
|
$
|
1,752,095
|
|
|
$
|
1,694,082
|
|
Total
deposits
|
$
|
7,134,996
|
|
|
$
|
6,754,156
|
|
|
$
|
6,790,754
|
|
|
$
|
6,851,449
|
|
|
$
|
6,859,944
|
|
Total shareholders'
equity
|
$
|
1,134,001
|
|
|
$
|
1,107,719
|
|
|
$
|
1,062,331
|
|
|
$
|
1,022,032
|
|
|
$
|
994,574
|
|
|
|
|
|
|
|
|
|
|
|
Yields/Rates:
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
5.21
|
%
|
|
5.18
|
%
|
|
5.20
|
%
|
|
5.15
|
%
|
|
5.09
|
%
|
Warehouse Purchase
Program
|
4.78
|
%
|
|
4.91
|
%
|
|
4.81
|
%
|
|
4.68
|
%
|
|
4.53
|
%
|
Commercial and
industrial
|
5.81
|
%
|
|
5.98
|
%
|
|
6.00
|
%
|
|
5.78
|
%
|
|
5.71
|
%
|
Construction and
land
|
6.13
|
%
|
|
6.03
|
%
|
|
5.87
|
%
|
|
5.41
|
%
|
|
5.35
|
%
|
Consumer real
estate
|
4.77
|
%
|
|
4.81
|
%
|
|
4.81
|
%
|
|
4.67
|
%
|
|
4.66
|
%
|
Other
consumer
|
5.66
|
%
|
|
5.88
|
%
|
|
5.80
|
%
|
|
5.81
|
%
|
|
5.74
|
%
|
Total loans held for
investment
|
5.30
|
%
|
|
5.38
|
%
|
|
5.37
|
%
|
|
5.22
|
%
|
|
5.16
|
%
|
Loans held for
sale
|
4.25
|
%
|
|
4.43
|
%
|
|
4.71
|
%
|
|
4.52
|
%
|
|
4.46
|
%
|
Securities
|
2.72
|
%
|
|
2.70
|
%
|
|
2.78
|
%
|
|
2.66
|
%
|
|
2.59
|
%
|
Overnight
deposits
|
2.36
|
%
|
|
2.37
|
%
|
|
2.24
|
%
|
|
1.99
|
%
|
|
1.89
|
%
|
Total
interest-earning assets
|
5.03
|
%
|
|
5.09
|
%
|
|
5.06
|
%
|
|
4.92
|
%
|
|
4.87
|
%
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
0.71
|
%
|
|
0.76
|
%
|
|
0.69
|
%
|
|
0.65
|
%
|
|
0.88
|
%
|
Savings and money
market
|
1.22
|
%
|
|
1.13
|
%
|
|
1.02
|
%
|
|
0.92
|
%
|
|
0.79
|
%
|
Time
|
2.35
|
%
|
|
2.23
|
%
|
|
2.05
|
%
|
|
1.80
|
%
|
|
1.62
|
%
|
FHLB advances and
other borrowings
|
2.94
|
%
|
|
3.09
|
%
|
|
2.91
|
%
|
|
2.55
|
%
|
|
2.49
|
%
|
Total
interest-bearing liabilities
|
1.78
|
%
|
|
1.70
|
%
|
|
1.55
|
%
|
|
1.43
|
%
|
|
1.30
|
%
|
Net interest
spread
|
3.25
|
%
|
|
3.39
|
%
|
|
3.51
|
%
|
|
3.49
|
%
|
|
3.57
|
%
|
Net interest
margin
|
3.77
|
%
|
|
3.89
|
%
|
|
3.98
|
%
|
|
3.90
|
%
|
|
3.93
|
%
|
Cost of deposits
(including non-interest-bearing demand)
|
1.15
|
%
|
|
1.09
|
%
|
|
0.97
|
%
|
|
0.87
|
%
|
|
0.80
|
%
|
LegacyTexas
Financial Group, Inc.
|
Supplemental
Information- Non-GAAP Financial Measures
|
(unaudited)
|
|
|
At or For the
Quarters Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
(Dollars in
thousands, except per share amounts)
|
Reconciliation of
Core (non-GAAP) to GAAP Net Income and Earnings per Share
(calculated net of estimated tax rate of 21%)
|
|
|
|
|
GAAP net income
available to common shareholders1
|
$
|
26,837
|
|
|
$
|
28,955
|
|
|
$
|
57,534
|
|
|
$
|
42,672
|
|
|
$
|
27,770
|
|
Distributed and
undistributed earnings to participating
securities1
|
146
|
|
|
125
|
|
|
235
|
|
|
149
|
|
|
67
|
|
GAAP net
income
|
26,983
|
|
|
29,080
|
|
|
57,769
|
|
|
42,821
|
|
|
27,837
|
|
Merger
costs
|
1,866
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Gain) on one-time
tax adjustment2
|
—
|
|
|
—
|
|
|
(15,289)
|
|
|
—
|
|
|
—
|
|
Expenses related to
above tax adjustment
|
—
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
—
|
|
Loss on sale of
branch locations and land
|
—
|
|
|
—
|
|
|
—
|
|
|
372
|
|
|
126
|
|
Core (non-GAAP) net
income
|
$
|
28,849
|
|
|
$
|
29,080
|
|
|
$
|
42,682
|
|
|
$
|
43,193
|
|
|
$
|
27,963
|
|
Average shares for
basic earnings per share
|
47,383,314
|
|
47,246,282
|
|
47,159,578
|
|
47,105,655
|
|
|
47,000,405
|
|
Basic GAAP earnings
per share
|
$
|
0.57
|
|
|
$
|
0.61
|
|
|
$
|
1.22
|
|
|
$
|
0.91
|
|
|
$
|
0.59
|
|
Basic core (non-GAAP)
earnings per share
|
$
|
0.61
|
|
|
$
|
0.62
|
|
|
$
|
0.91
|
|
|
$
|
0.92
|
|
|
$
|
0.59
|
|
Average shares for
diluted earnings per share
|
47,923,391
|
|
47,835,693
|
|
47,714,421
|
|
47,755,441
|
|
|
47,618,157
|
|
Diluted GAAP earnings
per share
|
$
|
0.56
|
|
|
$
|
0.61
|
|
|
$
|
1.21
|
|
|
$
|
0.89
|
|
|
$
|
0.58
|
|
Diluted core
(non-GAAP) earnings per share
|
$
|
0.60
|
|
|
$
|
0.61
|
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
0.59
|
|
Reconciliation of
Core (non-GAAP) to GAAP Non-Interest Income and Non-interest
Expense (gross of tax)
|
|
|
|
|
|
|
GAAP non-interest
income
|
$
|
12,232
|
|
|
$
|
9,894
|
|
|
$
|
12,264
|
|
|
$
|
13,227
|
|
|
$
|
10,852
|
|
Loss on sale of
branch locations and land
|
—
|
|
|
—
|
|
|
—
|
|
|
471
|
|
|
160
|
|
Core (non-GAAP)
non-interest income
|
$
|
12,232
|
|
|
$
|
9,894
|
|
|
$
|
12,264
|
|
|
$
|
13,698
|
|
|
$
|
11,012
|
|
GAAP non-interest
expense
|
$
|
47,526
|
|
|
$
|
44,307
|
|
|
$
|
42,868
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
Merger
costs
|
(2,362)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Expenses related to
above tax adjustments
|
—
|
|
|
—
|
|
|
(256)
|
|
|
—
|
|
|
—
|
|
Core (non-GAAP)
non-interest expense
|
$
|
45,164
|
|
|
$
|
44,307
|
|
|
$
|
42,612
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
|
1
Unvested share-based awards that contain nonforfeitable rights to
dividends are participating securities and are included in the
computation of GAAP earnings per share pursuant to prescribed
accounting guidance.
|
2
This one-time income tax benefit resulted from tax rate changes and
the favorable outcome of the Company's change in its tax method of
accounting for its loan portfolio, related to the December 22, 2017
enactment of the Tax Cuts and Jobs Act.
|
|
At or For the
Quarters Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
Reconciliation of
Core (non-GAAP) to GAAP Efficiency Ratio (gross of
tax)
|
|
(Dollars in
thousands, except per share amounts)
|
GAAP efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
|
47,526
|
|
|
$
|
44,307
|
|
|
$
|
42,868
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
Net interest income
plus non-interest income
|
97,786
|
|
|
91,058
|
|
|
96,563
|
|
|
98,894
|
|
|
94,781
|
|
Efficiency ratio -
GAAP basis
|
48.60
|
%
|
|
48.66
|
%
|
|
44.39
|
%
|
|
42.66
|
%
|
|
44.51
|
%
|
Core (non-GAAP)
efficiency ratio:
|
|
|
|
|
|
|
|
|
|
Core (non-GAAP)
non-interest expense
|
$
|
45,164
|
|
|
$
|
44,307
|
|
|
$
|
42,612
|
|
|
$
|
42,192
|
|
|
$
|
42,191
|
|
Net interest income
plus core (non-GAAP) non-interest income
|
97,786
|
|
|
91,058
|
|
|
96,563
|
|
|
99,365
|
|
|
94,941
|
|
Efficiency ratio -
core (non-GAAP) basis
|
46.19
|
%
|
|
48.66
|
%
|
|
44.13
|
%
|
|
42.46
|
%
|
|
44.44
|
%
|
Calculation of
Tangible Book Value per Share:
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
|
1,142,645
|
|
|
$
|
1,121,087
|
|
|
$
|
1,094,367
|
|
|
$
|
1,039,599
|
|
|
$
|
1,001,450
|
|
Less:
Goodwill
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
Identifiable
intangible assets, net
|
(193)
|
|
|
(218)
|
|
|
(245)
|
|
|
(279)
|
|
|
(313)
|
|
Total tangible
shareholders' equity
|
$
|
963,893
|
|
|
$
|
942,310
|
|
|
$
|
915,563
|
|
|
$
|
860,761
|
|
|
$
|
822,578
|
|
Shares outstanding at
end of period
|
48,833,238
|
|
|
48,704,070
|
|
|
48,505,261
|
|
|
48,491,169
|
|
|
48,311,220
|
|
Book value per share
- GAAP
|
$
|
23.40
|
|
|
$
|
23.02
|
|
|
$
|
22.56
|
|
|
$
|
21.44
|
|
|
$
|
20.73
|
|
Tangible book value
per share - Non-GAAP
|
19.74
|
|
|
19.35
|
|
|
18.88
|
|
|
17.75
|
|
|
17.03
|
|
Calculation of
Tangible Equity to Tangible Assets:
|
|
|
|
|
|
Total
assets
|
$
|
9,935,934
|
|
|
$
|
9,346,072
|
|
|
$
|
9,051,142
|
|
|
$
|
9,082,792
|
|
|
$
|
9,249,086
|
|
Less:
Goodwill
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
|
(178,559)
|
|
Identifiable
intangible assets, net
|
(193)
|
|
|
(218)
|
|
|
(245)
|
|
|
(279)
|
|
|
(313)
|
|
Total tangible
assets
|
$
|
9,757,182
|
|
|
$
|
9,167,295
|
|
|
$
|
8,872,338
|
|
|
$
|
8,903,954
|
|
|
$
|
9,070,214
|
|
Equity to assets -
GAAP
|
11.50
|
%
|
|
12.00
|
%
|
|
12.09
|
%
|
|
11.45
|
%
|
|
10.83
|
%
|
Tangible equity to
tangible assets - Non-GAAP
|
9.88
|
|
|
10.28
|
|
|
10.32
|
|
|
9.67
|
|
|
9.07
|
|
Calculation of
Return on Average Assets and Return on Average Equity Ratios (GAAP
and Core)
|
Net income
|
$
|
26,983
|
|
|
$
|
29,080
|
|
|
$
|
57,769
|
|
|
$
|
42,821
|
|
|
$
|
27,837
|
|
Core (non-GAAP) net
income
|
28,849
|
|
|
29,080
|
|
|
42,682
|
|
|
43,193
|
|
|
27,963
|
|
Average total
equity
|
1,134,001
|
|
|
1,107,719
|
|
|
1,062,331
|
|
|
1,022,032
|
|
|
994,574
|
|
Average total
assets
|
9,540,365
|
|
|
8,891,059
|
|
|
8,850,435
|
|
|
9,167,607
|
|
|
8,996,036
|
|
Return on average
common shareholders' equity
|
9.52
|
%
|
|
10.50
|
%
|
|
21.75
|
%
|
|
16.76
|
%
|
|
11.20
|
%
|
Core (non-GAAP)
return on average common shareholders' equity
|
10.18
|
|
|
10.50
|
|
|
16.07
|
|
|
16.90
|
|
|
11.25
|
|
Return on average
assets
|
1.13
|
|
|
1.31
|
|
|
2.61
|
|
|
1.87
|
|
|
1.24
|
|
Core (non-GAAP)
return on average assets
|
1.21
|
|
|
1.31
|
|
|
1.93
|
|
|
1.88
|
|
|
1.24
|
|
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SOURCE LegacyTexas Financial Group, Inc.