Provident Financial Services, Inc. (NYSE:PFS) (the “Company”)
reported net income of $48.6 million, or $0.63 per basic and
diluted share, for the three months ended March 31, 2021, compared
to net income of $14.9 million, or $0.23 per basic and diluted
share, for the three months ended March 31, 2020.
Earnings for the quarter were aided by an
improved economic outlook and resulting lower allowance for credit
loss requirements, as well as additional earnings attributable to
the July 31, 2020 acquisition of SB One Bancorp ("SB One"). For the
three months ended March 31, 2021, the Company recorded a negative
provision for credit losses on loans of $15.0 million and a
negative provision for off-balance sheet credit exposures of
$875,000.
Christopher Martin, Chairman and Chief Executive
Officer commented: “Provident’s first quarter reflects a solid
start for 2021 as we continue to leverage the benefits of last
year’s acquisition of SB One. Consistent with the positive economic
outlook, our asset quality continued to improve, resulting in a
credit loss reserve release this quarter. Our attentive management
of funding costs paid-off as our net interest margin increased six
basis points in the quarter.” Martin added, “We believe that with
our talented team and their focus on delivering a superior customer
experience, we are well positioned to capitalize on the growth
opportunities emanating from the anticipated acceleration of the
economic recovery.”
Declaration of Quarterly
Dividend
The Company’s Board of Directors declared a
quarterly cash dividend of $0.23 per common share payable on May
28, 2021, to stockholders of record as of the close of business on
May 14, 2021.
Balance Sheet Summary
Total assets at March 31, 2021 were $13.13
billion, a $210.7 million increase from December 31, 2020. The
increase in total assets was primarily due to a $155.2 million
increase in cash and cash equivalents and a $97.9 million increase
in total investments.
The loan portfolio decreased $19.4 million from
December 31, 2020 to $9.80 billion at March 31, 2021,
despite strong originations, as prepayments, including Paycheck
Protection Program ("PPP") loan forgiveness, were elevated. For the
three months ended March 31, 2021, loan originations, including
advances on lines of credit, totaled $770.5 million, compared with
$678.3 million for the same period in 2020. During the quarter
ended March 31, 2021, the Company originated $190.1 million of
loans under the current round of the PPP. Total PPP loans
outstanding increased to $486.6 million at March 31, 2021, from
$473.2 million at December 31, 2020. In addition to net growth in
PPP loans, the Company saw net growth in commercial real estate and
construction loans during the three months ended March 31, 2021,
with all other loan categories decreasing. Commercial real estate,
commercial and construction loans represented 83.3% of the loan
portfolio at March 31, 2021, compared to 81.8% at
December 31, 2020.
At March 31, 2021, the Company’s unfunded
loan commitments totaled $1.98 billion, including commitments of
$891.6 million in commercial loans, $669.8 million in construction
loans and $113.9 million in commercial mortgage loans. Unfunded
loan commitments at December 31, 2020 and March 31, 2020
were $1.99 billion and $1.23 billion, respectively.
The loan pipeline, consisting of work-in-process
and loans approved pending closing, totaled $1.30 billion at
March 31, 2021, compared to $1.23 billion and $1.33 billion at
December 31, 2020 and March 31, 2020, respectively.
Cash and cash equivalents were $687.6 million at
March 31, 2021, a $155.2 million increase from
December 31, 2020, due to net deposit inflows and loan
repayments, largely attributable to government stimulus programs,
proceeds from the forgiveness of PPP loans and a seasonal increase
in municipal deposits.
Total investments were $1.71 billion at
March 31, 2021, a $97.9 million increase from
December 31, 2020. This increase was primarily due to
purchases of mortgage-backed and municipal securities, partially
offset by repayments of mortgage-backed securities, maturities and
calls of certain municipal and agency bonds, and a decrease in
unrealized gains on available for sale debt securities.
Total deposits increased $459.7 million during
the three months ended March 31, 2021 to $10.30 billion. Total core
deposits, consisting of savings and demand deposit accounts,
increased $590.9 million to $9.33 billion at March 31, 2021,
while total time deposits decreased $131.2 million to $963.0
million at March 31, 2021. The increase in core deposits was
largely attributable to a $266.5 million increase in interest
bearing demand deposits, a $169.9 million increase in non-interest
bearing demand deposits, a $100.2 million increase in money market
deposits and a $54.2 million increase in savings deposits. Core
deposit growth benefited from the deposit of PPP loan proceeds and
government stimulus payments. The decrease in time deposits was
largely the result of a $75.1 million decrease in brokered deposits
and a $56.1 million decrease in retail time deposits. Core deposits
represented 90.6% of total deposits at March 31, 2021,
compared to 88.9% at December 31, 2020.
Borrowed funds decreased $235.4 million during
the three months ended March 31, 2021, to $940.6 million. The
decrease in borrowings for the period was primarily a function of
wholesale funding being partially replaced by the net inflows of
lower-costing deposits. Borrowed funds represented 7.2% of total
assets at March 31, 2021, a decrease from 9.1% at
December 31, 2020.
Stockholders’ equity increased $27.4 million
during the three months ended March 31, 2021, to $1.65 billion,
primarily due to net income earned for the period, partially offset
by dividends paid to stockholders, a decrease in unrealized gains
on available for sale debt securities and common stock repurchases.
For the three months ended March 31, 2021, common stock repurchases
totaled 44,937 shares at an average cost of $21.42 per share, of
which 42,224 shares, at an average cost of $21.67 per share, were
made in connection with withholding to cover income taxes on the
vesting of stock-based compensation. At March 31, 2021,
approximately 4.1 million shares remained eligible for repurchase
under the current stock repurchase authorization. Book value per
share and tangible book value per share(1) at March 31, 2021
were $21.17 and $15.19, respectively, compared with $20.87 and
$14.86, respectively, at December 31, 2020.
Results of Operations
Net Interest Income and Net Interest
Margin
For the three months ended March 31, 2021, net
interest income increased $1.3 million to $90.0 million, from $88.7
million for the trailing quarter. The increase in net interest
income was primarily attributable to growth in average earning
assets and period-over-period expansion of the net interest margin
aided by favorable liability repricing and the inflow of
lower-costing core deposits, as well as an increase in the
accelerated recognition of fees related to the forgiveness of
customers’ PPP loans in the current period.
The net interest margin increased six basis
points to 3.10% for the quarter ended March 31, 2021, from
3.04% for the trailing quarter, primarily due to an increase in the
yield on interest earning assets, combined with a decrease in
funding costs. The weighted average yield on interest-earning
assets increased three basis points to 3.47% for the quarter ended
March 31, 2021, compared to 3.44% for the quarter ended
December 31, 2020. The weighted average cost of
interest-bearing liabilities for the quarter ended March 31,
2021 decreased four basis points to 0.49%, compared to 0.53% for
the trailing quarter. The average cost of interest bearing deposits
for the quarter ended March 31, 2021 was 0.39%, compared to
0.41% for the trailing quarter ended December 31, 2020. The
average cost of all deposits, including non-interest bearing
deposits, was 0.30% for the quarter ended March 31, 2021,
compared with 0.31% for the trailing quarter. The average cost of
borrowed funds for the quarter ended March 31, 2021 was 1.12%,
compared to 1.16% for the trailing quarter.
For the three months ended March 31, 2021, net
interest income increased $18.0 million to $90.0 million, from
$72.0 million for the same period in 2020. The increase in net
interest income was favorably impacted by the net earning assets
acquired from SB One and the accelerated recognition of fees
related to PPP loan forgiveness, partially offset by
period-over-period compression in the net interest margin. The
degree of net interest margin compression was tempered by growth in
both average loans outstanding and lower-costing average
interest-bearing and non-interest bearing core deposits.
The net interest margin decreased 10 basis
points to 3.10% for the quarter ended March 31, 2021, compared
to 3.20% for the quarter ended March 31, 2020. The weighted
average yield on interest-earning assets decreased 45 basis points
to 3.47% for the quarter ended March 31, 2021, compared to
3.92% for the quarter ended March 31, 2020, while the weighted
average cost of interest bearing liabilities decreased 46 basis
points for the quarter ended March 31, 2021 to 0.49%, compared
to the first quarter of 2020. The average cost of interest bearing
deposits for the quarter ended March 31, 2021 was 0.39%,
compared to 0.78% for the same period last year. Average
non-interest bearing demand deposits totaled $2.38 billion for the
quarter ended March 31, 2021, compared to $1.50 billion for
the quarter ended March 31, 2020. The average cost of all
deposits, including non-interest bearing deposits, was 0.30% for
the quarter ended March 31, 2021, compared with 0.62% for the
quarter ended March 31, 2020. The average cost of borrowed
funds for the quarter ended March 31, 2021 was 1.12%, compared
to 1.80% for the same period last year.
Non-Interest Income
Non-interest income totaled $21.6 million for
the quarter ended March 31, 2021, an increase of $4.6 million,
compared to the same period in 2020. Insurance agency income, a new
fee revenue source for the Company resulting from the SB One
acquisition, totaled $2.7 million for the three months ended March
31, 2021. Income from Bank-owned life insurance ("BOLI") increased
$1.8 million to $2.6 million for the three months ended March 31,
2021, compared to the same period in 2020, primarily due to an
increase in benefit claims, increased equity valuations and
additional income related to the BOLI assets acquired from SB One.
Wealth management income increased $883,000 to $7.1 million for the
three months ended March 31, 2021. The increase was largely a
function of an increase in the market value of assets under
management as a result of strong equity market performance and
solid new business results, and an increase in the level of managed
mutual funds. Also, fee income increased $663,000 to $7.2 million
for the three months ended March 31, 2021, compared to the same
period in 2020, largely due to an increase in ATM and debit card
revenue, a portion of which is attributable to the addition of the
SB One customer base, and increases in commercial loan prepayment
fees and late charges, partially offset by a decrease in
deposit-related fees. Other income decreased $1.6 million to $1.8
million for the three months ended March 31, 2021, compared to the
quarter ended March 31, 2020, primarily due to a $1.8 million
decrease in net fees on loan-level interest rate swap transactions,
partially offset by a $455,000 increase in net gains on the sale of
loans.
Non-Interest Expense
For the three months ended March 31, 2021,
non-interest expense totaled $61.9 million, an increase of $7.7
million, compared to the three months ended March 31, 2020.
Compensation and benefits expense increased $4.1 million to $35.3
million for the three months ended March 31, 2021, compared to
$31.2 million for the same period in 2020. The increase was
principally due to increases in salary expense, the accrual for
incentive compensation and employee benefits each associated with
the addition of former SB One employees, as well as company-wide
annual merit increases, partially offset by a decrease in severance
expense. Net occupancy expense increased $3.1 million primarily due
to increases in rent, depreciation, utility and maintenance
expenses related to the facilities acquired from SB One, along with
an increase in snow removal costs. FDIC insurance increased $1.8
million due to an increase in the insurance assessment rate, an
increase in total assets subject to assessment, including assets
acquired from SB One, and the receipt of the small bank assessment
credit in the prior year quarter that was not available in the
current quarter. Other operating expenses increased $937,000 to
$10.1 million for the three months ended March 31, 2021, compared
to $9.2 million for the same period in 2020. The increase in other
operating expense was largely due to a valuation adjustment on
foreclosed assets and an increase in debit card maintenance
expense, partially offset by non-recurring merger related expenses
incurred in the prior year quarter. Also, the amortization of
intangibles increased $228,000 for the three months ended March 31,
2021, compared with the same period in 2020, mainly due to
increases in the amortization of the customer relationship and
core-deposit intangibles attributable to the acquisition of SB One.
Partially offsetting these increases, credit loss expense for
off-balance sheet credit exposures decreased $1.9 million for the
three months ended March 31, 2021, compared to the same period in
2020. The decrease was primarily a function of an improved economic
forecast resulting in a decline in projected loss factors,
partially offset by an increase in the availability of committed
lines of credit due to below average utilization.
The Company’s annualized adjusted non-interest
expense as a percentage of average assets(1) was 1.95% for the
quarter ended March 31, 2021, compared to 2.13% for the same
period in 2020, with the 2021 improvement driven by the significant
increase in average assets largely attributable to assets acquired
from SB One and PPP loans. The efficiency ratio (adjusted
non-interest expense divided by the sum of net interest income and
non-interest income)(1) was 56.19% for the three months ended March
31, 2021, compared to 59.14% for the same period in 2020.
Asset Quality
Total non-performing loans at March 31,
2021 were $82.1 million, or 0.84% of total loans, compared to $87.1
million, or 0.89% of total loans at December 31, 2020, and
$35.3 million, or 0.48% of total loans at March 31, 2020. The
$5.0 million decrease in non-performing loans at March 31,
2021, compared to the trailing quarter, consisted of a $6.1 million
decrease in non-performing commercial loans and a $1.5 million
decrease in non-performing residential loans, partially offset by a
$1.8 million increase in non-performing commercial mortgage loans
and a $727,000 increase in non-performing consumer loans. At
March 31, 2021, impaired loans totaled $79.5 million with
related specific reserves of $4.8 million, compared with impaired
loans totaling $86.0 million with related specific reserves of $9.0
million at December 31, 2020 and $65.7 million with related
specific reserves of $5.7 million at March 31, 2020. The
increase in non-performing loans at March 31, 2021, compared
to the prior year reflects the effects of the pandemic and related
government response.
Loans that have been or are expected to be
granted short-term COVID-19 related deferrals have decreased from a
peak level of $1.31 billion, or 16.8% of loans, to $132.0 million,
or 1.3% of loans as of April 20, 2021. This $132.0 million of loans
consists of $300,000 in a first 90-day deferral period, $46.6
million in a second 90-day deferral period, and $85.1 million in a
third deferral period. Of the $123.5 million in commercial loans in
deferral, $119.0 million (96.4%) are under principal only deferral
and are paying interest. Included in the $132.0 million of total
loans in deferral, $40.9 million are secured by hotels, $33.1
million are secured by multi-family properties (of which $20.1
million is student housing related), $8.6 million are secured by
retail properties, $6.5 million are secured by restaurants, and
$8.5 million are secured by residential mortgages, with the balance
comprised of diverse commercial loans.
At March 31, 2021, the allowance for credit
losses related to the loan portfolio was 0.87% of total loans,
compared to 1.03% and 1.02% at December 31, 2020 and March 31,
2020, respectively. Excluding PPP loans, the Company’s allowance
for credit losses related to the loan portfolio was 0.92% at March
31, 2021. The Company recorded a $15.0 million negative provision
for credit losses related to loans for the three months ended March
31, 2021, compared with a $14.7 million provision for credit losses
for the three months ended March 31, 2020. For the three
months ended March 31, 2021, the Company had net charge-offs of
$876,000, compared to net charge-offs of $3.0 million for the same
period in 2020. The allowance for loan losses decreased $15.9
million to $85.6 million at March 31, 2021 from $101.5 million
at December 31, 2020. The negative provision for credit losses
for the first quarter of 2021 was primarily the result of an
improved economic forecast and the resultant favorable impact on
expected credit losses, compared with a provision for credit losses
for the prior year, which was based upon a weak economic forecast
and more uncertain outlook attributable to the pandemic. Future
credit loss provisions are subject to significant uncertainty given
the undetermined nature of prospective changes in economic
conditions, as the impact of the pandemic and recovery continues to
unfold. The effectiveness of medical advances, government programs,
and the resulting impact on consumer behavior and employment
conditions will have a material bearing on future credit conditions
and reserve requirements.
At March 31, 2021 and December 31,
2020, the Company held foreclosed assets of $3.6 million and $4.5
million, respectively. During the three months ended March 31,
2021, there were two additions to foreclosed assets with an
aggregate carrying value of $434,000, four assets sold with an
aggregate carrying value of $580,000 and valuation charges of
$775,000. Foreclosed assets at March 31, 2021 consisted of
$2.6 million of commercial real estate, $434,000 of residential
real estate and $530,000 of commercial vehicles. Total
non-performing assets at March 31, 2021 decreased $5.9 million
to $85.6 million, or 0.65% of total assets, from $91.6 million, or
0.71% of total assets at December 31, 2020.
Income Tax Expense
For the three months ended March 31, 2021,
income tax expense was $16.2 million with an effective tax rate of
25.0%, compared with income tax expense of $5.3 million with an
effective tax rate of 26.0% for the three months ended March 31,
2020. The increase in tax expense for the three months ended March
31, 2021, compared with the same period last year was largely the
result of an increase in taxable income, while the decrease in the
effective tax rate for the three months ended March 31, 2021
compared with the same period in 2020 was primarily due to a
discrete item related to the vesting of stock awards at a market
value below the fair value used for expense recognition which
resulted in a higher effective tax rate in the prior year,
partially offset by increased projections of taxable income for the
remainder of 2021.
About the Company
Provident Financial Services, Inc. is the
holding company for Provident Bank, a community-oriented bank
offering "commitment you can count on" since 1839. Provident Bank
provides a comprehensive array of financial products and services
through its network of branches throughout northern and central New
Jersey, as well as Bucks, Lehigh and Northampton counties in
Pennsylvania and Queens County, New York. The Bank also provides
fiduciary and wealth management services through its wholly owned
subsidiary, Beacon Trust Company and insurance services through its
wholly owned subsidiary, SB One Insurance Agency, Inc.
Post Earnings Conference
Call
Representatives of the Company will hold a
conference call for investors on Friday, April 30, 2021 at
10:00 a.m. Eastern Time to discuss the Company’s financial results
for the quarter ended March 31, 2021. The call may be accessed
by dialing 1-888-336-7149 (Domestic), 1-412-902-4175
(International) or 1-855-669-9657 (Canada). Internet access to the
call is also available (listen only) at provident.bank by going to
Investor Relations and clicking on "Webcast.
Forward Looking Statements
Certain statements contained herein are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements may be
identified by reference to a future period or periods, or by the
use of forward-looking terminology, such as “may,” “will,”
“believe,” “expect,” “estimate,” "project," "intend," “anticipate,”
“continue,” or similar terms or variations on those terms, or the
negative of those terms. Forward-looking statements are subject to
numerous risks and uncertainties, including, but not limited to,
those set forth in Item 1A of the Company's Annual Report on Form
10-K, as supplemented by its Quarterly Reports on Form 10-Q, and
those related to the economic environment, particularly in the
market areas in which the Company operates, competitive products
and pricing, fiscal and monetary policies of the U.S. Government,
changes in accounting policies and practices that may be adopted by
the regulatory agencies and the accounting standards setters,
changes in government regulations affecting financial institutions,
including regulatory fees and capital requirements, changes in
prevailing interest rates, acquisitions and the integration of
acquired businesses, credit risk management, asset-liability
management, the financial and securities markets and the
availability of and costs associated with sources of liquidity.
In addition, the COVID-19 pandemic continues to
have an adverse impact on the Company, its customers and the
communities it serves. Given its ongoing and dynamic nature, it is
difficult to predict the full impact of the pandemic on the
Company's business, financial condition or results of operations.
The extent of such impact will depend on future developments, which
are highly uncertain, including when
the pandemic will be controlled and abated, and the
extent to which the economy can remain open. As the result of the
pandemic and the related adverse local and national economic
consequences, the Company could be subject to any of the following
risks, any of which could have a material, adverse effect on our
business, financial condition, liquidity, and results of
operations: the demand for our products and services may decline,
making it difficult to grow assets and income; if the economy is
unable to remain substantially open, and high levels of
unemployment continue for an extended period of time, loan
delinquencies, problem assets, and foreclosures may increase,
resulting in increased charges and reduced income; collateral for
loans, especially real estate, may decline in value, which could
cause loan losses to increase; our allowance for credit losses may
increase if borrowers experience financial difficulties, which will
adversely affect our net income; the net worth and liquidity of
loan guarantors may decline, impairing their ability to honor
commitments to us; as the result of the decline in the Federal
Reserve Board’s target federal funds rate to near 0%, the yield on
our assets may decline to a greater extent than the decline in our
cost of interest-bearing liabilities, reducing our net interest
margin and spread and reducing net income; our wealth management
revenues may decline with continuing market turmoil; we may face
the risk of a goodwill write-down due to stock price decline; and
our cyber security risks are increased as the result of an increase
in the number of employees working remotely.
The Company cautions readers not to place undue
reliance on any such forward-looking statements which speak only as
of the date made. The Company advises readers that the factors
listed above could 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 have any obligation to update any forward-looking
statements to reflect events or circumstances after the date of
this statement.
Footnotes
(1) Tangible book value per
share, annualized return on average tangible equity, annualized
adjusted non-interest expense as a percentage of average assets and
the efficiency ratio are non-GAAP financial measures. Please refer
to the Notes following the Consolidated Financial Highlights which
contain the reconciliation of GAAP to non-GAAP financial measures
and the associated calculations.
SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank
|
|
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Statements of Financial Condition |
March 31, 2021 (Unaudited) and December 31, 2020 |
(Dollars in Thousands) |
|
|
|
|
Assets |
March 31, 2021 |
|
December 31, 2020 |
|
|
|
|
Cash and due from banks |
$ |
559,235 |
|
|
|
$ |
404,355 |
|
|
Short-term investments |
128,335 |
|
|
|
127,998 |
|
|
Total cash and cash equivalents |
687,570 |
|
|
|
532,353 |
|
|
Available for sale debt
securities, at fair value |
1,216,936 |
|
|
|
1,105,489 |
|
|
Held to maturity debt
securities, net (fair value of $463,916 at March 31, 2021
(unaudited) and $472,451 at December 31, 2020) |
447,902 |
|
|
|
450,965 |
|
|
Equity securities, at fair
value |
1,026 |
|
|
|
971 |
|
|
Federal Home Loan Bank
stock |
48,998 |
|
|
|
59,489 |
|
|
Loans |
9,803,536 |
|
|
|
9,822,890 |
|
|
Less allowance for credit losses |
85,591 |
|
|
|
101,466 |
|
|
Net loans |
9,717,945 |
|
|
|
9,721,424 |
|
|
Foreclosed assets, net |
3,554 |
|
|
|
4,475 |
|
|
Banking premises and
equipment, net |
75,344 |
|
|
|
75,946 |
|
|
Accrued interest
receivable |
43,883 |
|
|
|
46,450 |
|
|
Intangible assets |
465,335 |
|
|
|
466,212 |
|
|
Bank-owned life insurance |
235,112 |
|
|
|
234,607 |
|
|
Other assets |
186,840 |
|
|
|
221,360 |
|
|
Total assets |
$ |
13,130,445 |
|
|
|
$ |
12,919,741 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Deposits: |
|
|
|
Demand deposits |
$ |
7,932,146 |
|
|
|
$ |
7,395,508 |
|
|
Savings deposits |
1,402,363 |
|
|
|
1,348,147 |
|
|
Certificates of deposit of $100,000 or more |
604,732 |
|
|
|
717,216 |
|
|
Other time deposits |
358,272 |
|
|
|
376,958 |
|
|
Total deposits |
10,297,513 |
|
|
|
9,837,829 |
|
|
Mortgage escrow deposits |
37,772 |
|
|
|
34,298 |
|
|
Borrowed funds |
940,611 |
|
|
|
1,175,972 |
|
|
Subordinated debentures |
25,173 |
|
|
|
25,135 |
|
|
Other liabilities |
182,145 |
|
|
|
226,710 |
|
|
Total liabilities |
11,483,214 |
|
|
|
11,299,944 |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock, $0.01 par
value, 50,000,000 shares authorized, none issued |
— |
|
|
|
— |
|
|
Common stock, $0.01 par value,
200,000,000 shares authorized, 83,209,012 shares issued and
77,798,624 shares outstanding at March 31, 2021 and 77,611,107
outstanding at December 31, 2020. |
832 |
|
|
|
832 |
|
|
Additional paid-in
capital |
963,556 |
|
|
|
962,453 |
|
|
Retained earnings |
748,574 |
|
|
|
718,090 |
|
|
Accumulated other
comprehensive income |
12,977 |
|
|
|
17,655 |
|
|
Treasury stock |
(59,261 |
) |
|
|
(59,018 |
) |
|
Unallocated common stock held
by the Employee Stock Ownership Plan |
(19,447 |
) |
|
|
(20,215 |
) |
|
Common Stock acquired by the
Directors' Deferred Fee Plan |
(4,381 |
) |
|
|
(4,549 |
) |
|
Deferred Compensation -
Directors' Deferred Fee Plan |
4,381 |
|
|
|
4,549 |
|
|
Total stockholders' equity |
1,647,231 |
|
|
|
1,619,797 |
|
|
Total liabilities and stockholders' equity |
$ |
13,130,445 |
|
|
|
$ |
12,919,741 |
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Statements of Income |
Three Months Ended March 31, 2021 and 2020 (Unaudited) |
(Dollars in Thousands, except per share data) |
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2021 |
|
2020 |
Interest
income: |
|
|
|
Real estate secured loans |
$ |
62,016 |
|
|
|
$ |
54,441 |
|
Commercial loans |
26,143 |
|
|
|
18,672 |
|
Consumer loans |
3,492 |
|
|
|
4,172 |
|
Available for sale debt securities, equity securities and Federal
Home Loan Bank stock |
5,612 |
|
|
|
7,069 |
|
Held to maturity debt securities |
2,784 |
|
|
|
2,940 |
|
Deposits, federal funds sold and other short-term investments |
484 |
|
|
|
875 |
|
Total interest income |
100,531 |
|
|
|
88,169 |
|
|
|
|
|
Interest
expense: |
|
|
|
Deposits |
7,417 |
|
|
|
10,958 |
|
Borrowed funds |
2,809 |
|
|
|
5,190 |
|
Subordinated debt |
305 |
|
|
|
— |
|
Total interest expense |
10,531 |
|
|
|
16,148 |
|
Net interest income |
90,000 |
|
|
|
72,021 |
|
Provision for
credit losses |
(15,001 |
) |
|
|
14,717 |
|
Net interest income after provision for credit losses |
105,001 |
|
|
|
57,304 |
|
|
|
|
|
Non-interest
income: |
|
|
|
Fees |
7,192 |
|
|
|
6,529 |
|
Wealth management income |
7,134 |
|
|
|
6,251 |
|
Insurance agency income |
2,727 |
|
|
|
— |
|
Bank-owned life insurance |
2,567 |
|
|
|
787 |
|
Net gain on securities transactions |
197 |
|
|
|
11 |
|
Other income |
1,820 |
|
|
|
3,413 |
|
Total non-interest income |
21,637 |
|
|
|
16,991 |
|
|
|
|
|
Non-interest
expense: |
|
|
|
Compensation and employee benefits |
35,312 |
|
|
|
31,195 |
|
Net occupancy expense |
9,301 |
|
|
|
6,203 |
|
Data processing expense |
4,393 |
|
|
|
4,430 |
|
FDIC Insurance |
1,770 |
|
|
|
— |
|
Amortization of intangibles |
972 |
|
|
|
744 |
|
Advertising and promotion expense |
877 |
|
|
|
1,369 |
|
Credit loss (benefit) expense for off-balance sheet credit
exposures |
(875 |
) |
|
|
1,000 |
|
Other operating expenses |
10,103 |
|
|
|
9,166 |
|
Total non-interest expense |
61,853 |
|
|
|
$ |
54,107 |
|
Income before income tax expense |
64,785 |
|
|
|
$ |
20,188 |
|
Income tax
expense |
16,226 |
|
|
|
5,257 |
|
Net income |
$ |
48,559 |
|
|
|
$ |
14,931 |
|
|
|
|
|
Basic earnings per
share |
$ |
0.63 |
|
|
|
$ |
0.23 |
|
Average basic
shares outstanding |
76,516,543 |
|
|
|
64,386,138 |
|
|
|
|
|
Diluted earnings
per share |
$ |
0.63 |
|
|
|
$ |
0.23 |
|
Average diluted
shares outstanding |
76,580,862 |
|
|
|
64,457,263 |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Financial Highlights |
(Dollars in Thousands, except share data) (Unaudited) |
|
|
|
|
|
At or for the |
|
|
Three months ended March 31, |
|
|
2021 |
|
2020 |
Statement of
Income |
|
|
|
|
Net interest income |
|
$ |
90,000 |
|
|
$ |
72,021 |
|
Provision for credit losses |
|
(15,001 |
) |
|
14,717 |
|
Non-interest income |
|
21,637 |
|
|
16,991 |
|
Non-interest expense |
|
61,853 |
|
|
54,107 |
|
Income before income tax expense |
|
64,785 |
|
|
20,188 |
|
Net income |
|
48,559 |
|
|
14,931 |
|
Diluted earnings per share |
|
$ |
0.63 |
|
|
$ |
0.23 |
|
Interest rate spread |
|
2.98 |
% |
|
2.97 |
% |
Net interest margin |
|
3.10 |
% |
|
3.20 |
% |
Profitability |
|
|
|
|
|
|
Annualized return on average assets |
|
1.51 |
% |
|
0.61 |
% |
Annualized return on average equity |
|
12.02 |
% |
|
4.22 |
% |
Annualized return on average tangible equity (2) |
|
16.80 |
% |
|
6.10 |
% |
Annualized adjusted non-interest expense to average assets (3) |
|
1.95 |
% |
|
2.13 |
% |
Efficiency ratio (4) |
|
56.19 |
% |
|
59.14 |
% |
Asset
Quality |
|
|
|
|
|
|
Non-accrual loans |
|
$ |
82,084 |
|
|
$ |
35,339 |
|
90+ and still accruing |
|
— |
|
|
— |
|
Non-performing loans |
|
82,084 |
|
|
35,339 |
|
Foreclosed assets |
|
3,554 |
|
|
4,219 |
|
Non-performing assets |
|
85,638 |
|
|
39,558 |
|
Non-performing loans to total loans |
|
0.84 |
% |
|
0.48 |
% |
Non-performing assets to total assets |
|
0.65 |
% |
|
0.39 |
% |
Allowance for loan losses |
|
$ |
85,591 |
|
|
$ |
75,143 |
|
Allowance for loan losses to total non-performing loans |
|
104.27 |
% |
|
212.63 |
% |
Allowance for loan losses to total loans |
|
0.87 |
% |
|
1.02 |
% |
Net loan charge-offs |
|
$ |
876 |
|
|
$ |
3,002 |
|
Annualized net loan charge offs to average total loans |
|
0.04 |
% |
|
0.17 |
% |
Average Balance Sheet
Data |
|
|
|
|
|
|
Assets |
|
$ |
13,034,155 |
|
|
$ |
9,923,457 |
|
Loans, net |
|
9,723,783 |
|
|
7,258,105 |
|
Earning assets |
|
11,628,963 |
|
|
8,950,885 |
|
Core deposits |
|
9,064,202 |
|
|
6,390,867 |
|
Borrowings |
|
1,015,230 |
|
|
1,157,705 |
|
Interest-bearing liabilities |
|
8,769,268 |
|
|
6,822,578 |
|
Stockholders' equity |
|
1,638,194 |
|
|
1,421,748 |
|
Average yield on interest-earning assets |
|
3.47 |
% |
|
3.92 |
% |
Average cost of interest-bearing liabilities |
|
0.49 |
% |
|
0.95 |
% |
Loan
Data |
|
|
|
|
|
|
Mortgage loans: |
|
|
|
|
|
|
Residential |
|
$ |
1,277,376 |
|
|
$ |
1,107,197 |
|
Commercial |
|
3,594,012 |
|
|
2,555,177 |
|
Multi-family |
|
1,458,193 |
|
|
1,222,437 |
|
Construction |
|
615,706 |
|
|
408,944 |
|
Total mortgage loans |
|
6,945,288 |
|
|
5,293,755 |
|
Commercial loans |
|
2,510,708 |
|
|
1,703,669 |
|
Consumer loans |
|
363,648 |
|
|
379,597 |
|
Total gross loans |
|
9,819,644 |
|
|
7,377,021 |
|
Premium on purchased loans |
|
1,378 |
|
|
2,300 |
|
Unearned discounts |
|
(7 |
) |
|
(26 |
) |
Net deferred |
|
(17,478 |
) |
|
(7,251 |
) |
Total loans |
|
$ |
9,803,536 |
|
|
$ |
7,372,044 |
|
Notes and Reconciliation of GAAP and Non-GAAP Financial
Measures
(Dollars in Thousands, except share
data)
The Company has presented the following non-GAAP
(U.S. Generally Accepted Accounting Principles) financial measures
because it believes that these measures provide useful and
comparative information to assess trends in the Company’s results
of operations and financial condition. Presentation of these
non-GAAP financial measures is consistent with how the Company
evaluates its performance internally and these non-GAAP financial
measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in the
Company’s industry. Investors should recognize that the Company’s
presentation of these non-GAAP financial measures might not be
comparable to similarly-titled measures of other companies. These
non-GAAP financial measures should not be considered a substitute
for GAAP basis measures and the Company strongly encourages a
review of its condensed consolidated financial statements in their
entirety.
(1) Book and Tangible
Book Value per Share |
|
|
|
|
|
|
|
|
|
|
|
At March 31, |
|
At December 31, |
|
|
|
|
2021 |
|
2020 |
|
2020 |
|
Total stockholders' equity |
|
|
$ |
1,647,231 |
|
|
$ |
1,412,589 |
|
|
$ |
1,619,797 |
|
|
Less: total intangible assets |
|
|
465,335 |
|
|
436,278 |
|
|
466,212 |
|
|
Total tangible stockholders' equity |
|
|
$ |
1,181,896 |
|
|
$ |
976,311 |
|
|
$ |
1,153,585 |
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
77,798,624 |
|
|
65,770,728 |
|
|
77,611,107 |
|
|
|
|
|
|
|
|
|
|
|
Book value per share (total stockholders' equity/shares
outstanding) |
|
|
$ |
21.17 |
|
|
$ |
21.48 |
|
|
$ |
20.87 |
|
|
Tangible book value per share (total tangible stockholders'
equity/shares outstanding) |
|
|
$ |
15.19 |
|
|
$ |
14.84 |
|
|
$ |
14.86 |
|
|
|
|
|
|
|
|
|
|
|
(2) Annualized Return
on Average Tangible Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
2021 |
|
2020 |
|
Total average stockholders' equity |
|
|
|
|
$ |
1,638,194 |
|
|
$ |
1,421,748 |
|
|
Less: total average intangible assets |
|
|
|
|
465,902 |
|
|
436,757 |
|
|
Total average tangible stockholders' equity |
|
|
|
|
$ |
1,172,292 |
|
|
$ |
984,991 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
$ |
48,559 |
|
|
$ |
14,931 |
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average tangible equity (net income/total
average tangible stockholders' equity) |
|
|
|
|
16.80 |
% |
|
6.10 |
% |
|
|
|
|
|
|
|
|
|
|
(3) Annualized
Adjusted Non-Interest Expense to Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
2021 |
|
2020 |
|
Reported non-interest expense |
|
|
|
|
$ |
61,853 |
|
|
$ |
54,107 |
|
|
Adjustments to non-interest expense: |
|
|
|
|
|
|
|
|
Credit loss benefit (expense) for off-balance sheet credit
exposures |
|
|
|
|
(875 |
) |
|
(1,000 |
) |
|
Merger-related transaction costs |
|
|
|
|
— |
|
|
(463 |
) |
|
Adjusted non-interest expense |
|
|
|
|
$ |
62,728 |
|
|
$ |
52,644 |
|
|
Annualized adjusted non-interest expense |
|
|
|
|
$ |
254,397 |
|
|
$ |
211,733 |
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
|
|
$ |
13,034,155 |
|
|
$ |
9,923,457 |
|
|
|
|
|
|
|
|
|
|
|
Annualized adjusted non-interest expense/average assets |
|
|
|
|
1.95 |
% |
|
2.13 |
% |
|
|
|
|
|
|
|
|
|
|
(4) Efficiency Ratio
Calculation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
2021 |
|
2020 |
|
Net interest income |
|
|
|
|
$ |
90,000 |
|
|
$ |
72,021 |
|
|
Non-interest income |
|
|
|
|
21,637 |
|
|
16,991 |
|
|
Total income |
|
|
|
|
$ |
111,637 |
|
|
$ |
89,012 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-interest expense |
|
|
|
|
$ |
62,728 |
|
|
$ |
52,644 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (adjusted non-interest expense/income) |
|
|
|
|
56.19 |
% |
|
59.14 |
% |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Net Interest Margin Analysis |
Quarterly Average Balances |
(Dollars in Thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
December 31, 2020 |
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
137,494 |
|
|
$ |
85 |
|
|
0.25 |
% |
|
$ |
97,134 |
|
|
$ |
61 |
|
|
0.25 |
% |
Federal funds sold and other short-term investments |
127,989 |
|
|
|
399 |
|
|
1.26 |
% |
|
127,060 |
|
|
405 |
|
|
1.27 |
% |
Available for sale debt securities |
1,136,885 |
|
|
|
4,849 |
|
|
|
1.71 |
% |
|
1,107,525 |
|
|
4,916 |
|
|
|
1.78 |
% |
Held to maturity debt securities, net (1) |
450,396 |
|
|
|
2,784 |
|
|
|
2.47 |
% |
|
449,002 |
|
|
2,800 |
|
|
|
2.49 |
% |
Equity securities, at fair value |
979 |
|
|
— |
|
|
— |
% |
|
889 |
|
|
— |
|
|
— |
% |
Federal Home Loan Bank stock |
51,437 |
|
|
|
763 |
|
|
|
5.93 |
% |
|
60,919 |
|
|
861 |
|
|
|
5.66 |
% |
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
6,808,066 |
|
|
|
62,016 |
|
|
|
3.64 |
% |
|
6,903,673 |
|
|
62,290 |
|
|
|
3.56 |
% |
Total commercial loans |
2,512,563 |
|
|
|
26,143 |
|
|
|
4.20 |
% |
|
2,337,230 |
|
|
23,919 |
|
|
|
4.04 |
% |
Total consumer loans |
403,154 |
|
|
|
3,492 |
|
|
|
3.51 |
% |
|
431,169 |
|
|
4,898 |
|
|
|
4.52 |
% |
Total net loans |
9,723,783 |
|
|
|
91,651 |
|
|
|
3.78 |
% |
|
9,672,072 |
|
|
91,107 |
|
|
|
3.72 |
% |
Total interest-earning assets |
$ |
11,628,963 |
|
|
$ |
100,531 |
|
|
3.47 |
% |
|
$ |
11,514,601 |
|
|
$ |
100,150 |
|
|
3.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
365,101 |
|
|
|
|
|
|
|
341,787 |
|
|
|
|
|
Other assets |
1,040,091 |
|
|
|
|
|
|
1,045,993 |
|
|
|
|
|
Total assets |
$ |
13,034,155 |
|
|
|
|
|
|
$ |
12,902,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
5,314,461 |
|
|
$ |
5,512 |
|
|
0.42 |
% |
|
$ |
4,941,955 |
|
|
$ |
5,141 |
|
|
|
0.41 |
% |
Savings deposits |
1,371,376 |
|
|
|
407 |
|
|
|
0.12 |
% |
|
1,329,525 |
|
|
493 |
|
|
|
0.15 |
% |
Time deposits |
1,043,052 |
|
|
|
1,498 |
|
|
|
0.58 |
% |
|
1,134,277 |
|
|
1,954 |
|
|
|
0.69 |
% |
Total Deposits |
7,728,889 |
|
|
|
7,417 |
|
|
|
0.39 |
% |
|
7,405,757 |
|
|
7,588 |
|
|
|
0.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowed funds |
1,015,230 |
|
|
|
2,809 |
|
|
|
1.12 |
% |
|
1,210,959 |
|
|
3,518 |
|
|
|
1.16 |
% |
Subordinated debentures |
25,149 |
|
|
305 |
|
|
4.91 |
% |
|
25,111 |
|
|
306 |
|
|
4.85 |
% |
Total interest-bearing liabilities |
$ |
8,769,268 |
|
|
|
$ |
10,531 |
|
|
|
0.49 |
% |
|
$ |
8,641,827 |
|
|
$ |
11,412 |
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
2,378,365 |
|
|
|
|
|
|
|
2,378,637 |
|
|
|
|
|
Other non-interest bearing liabilities |
248,328 |
|
|
|
|
|
|
|
270,226 |
|
|
|
|
|
Total non-interest bearing liabilities |
2,626,693 |
|
|
|
|
|
|
|
2,648,863 |
|
|
|
|
|
Total liabilities |
11,395,961 |
|
|
|
|
|
|
|
11,290,690 |
|
|
|
|
|
Stockholders' equity |
1,638,194 |
|
|
|
|
|
|
|
1,611,691 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
13,034,155 |
|
|
|
|
|
|
$ |
12,902,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
$ |
90,000 |
|
|
|
|
|
|
$ |
88,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread |
|
|
|
|
2.98 |
% |
|
|
|
|
|
2.91 |
% |
Net
interest-earning assets |
$ |
2,859,695 |
|
|
|
|
|
|
$ |
2,872,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (3) |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total interest-bearing liabilities |
1.33x |
|
|
|
|
|
|
|
1.33x |
|
|
|
|
|
|
|
(1) Average outstanding balance amounts shown are amortized cost,
net of allowance for credit losses. |
(2) Average outstanding balances are net of the allowance for loan
losses, deferred loan fees and expenses, loan premiums and
discounts and include non-accrual loans. |
(3) Annualized net interest income divided by average
interest-earning assets. |
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Net Interest Margin Analysis |
Average Year to Date Balances |
(Dollars in Thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
March 31, 2020 |
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
137,494 |
|
|
$ |
85 |
|
|
0.25 |
% |
|
$ |
76,080 |
|
|
$ |
269 |
|
|
1.42 |
% |
Federal funds sold and other short term investments |
127,989 |
|
|
399 |
|
|
1.26 |
% |
|
104,050 |
|
|
606 |
|
|
2.34 |
% |
Available for sale debt securities |
1,136,885 |
|
|
4,849 |
|
|
1.71 |
% |
|
1,004,282 |
|
|
6,106 |
|
|
2.43 |
% |
Held to maturity debt securities, net (1) |
450,396 |
|
|
2,784 |
|
|
2.47 |
% |
|
449,107 |
|
|
2,940 |
|
|
2.62 |
% |
Equity securities, at fair value |
979 |
|
|
— |
|
|
— |
% |
|
806 |
|
|
— |
|
|
— |
% |
Federal Home Loan Bank stock |
51,437 |
|
|
763 |
|
|
5.93 |
% |
|
58,455 |
|
|
963 |
|
|
6.59 |
% |
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
6,808,066 |
|
|
62,016 |
|
|
3.64 |
% |
|
5,263,048 |
|
|
54,441 |
|
|
4.11 |
% |
Total commercial loans |
2,512,563 |
|
|
26,143 |
|
|
4.20 |
% |
|
1,611,993 |
|
|
18,672 |
|
|
4.61 |
% |
Total consumer loans |
403,154 |
|
|
3,492 |
|
|
3.51 |
% |
|
383,064 |
|
|
4,172 |
|
|
4.38 |
% |
Total net loans |
9,723,783 |
|
|
91,651 |
|
|
3.78 |
% |
|
7,258,105 |
|
|
77,285 |
|
|
4.23 |
% |
Total interest-earning assets |
$ |
11,628,963 |
|
|
$ |
100,531 |
|
|
3.47 |
% |
|
$ |
8,950,885 |
|
|
$ |
88,169 |
|
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
365,101 |
|
|
|
|
|
|
108,901 |
|
|
|
|
|
Other assets |
1,040,091 |
|
|
|
|
|
|
863,671 |
|
|
|
|
|
Total assets |
$ |
13,034,155 |
|
|
|
|
|
|
$ |
9,923,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
5,314,461 |
|
|
$ |
5,512 |
|
|
0.42 |
% |
|
$ |
3,901,940 |
|
|
$ |
7,399 |
|
|
0.76 |
% |
Savings deposits |
1,371,376 |
|
|
407 |
|
|
0.12 |
% |
|
991,750 |
|
|
368 |
|
|
0.15 |
% |
Time deposits |
1,043,052 |
|
|
1,498 |
|
|
0.58 |
% |
|
771,183 |
|
|
3,191 |
|
|
1.66 |
% |
Total Deposits |
7,728,889 |
|
|
7,417 |
|
|
0.39 |
% |
|
5,664,873 |
|
|
10,958 |
|
|
0.78 |
% |
Borrowed funds |
1,015,230 |
|
|
2,809 |
|
|
1.12 |
% |
|
1,157,705 |
|
|
5,190 |
|
|
1.80 |
% |
Subordinated debentures |
25,149 |
|
|
305 |
|
|
4.91 |
% |
|
— |
|
|
— |
|
|
— |
% |
Total interest-bearing liabilities |
$ |
8,769,268 |
|
|
$ |
10,531 |
|
|
0.49 |
% |
|
$ |
6,822,578 |
|
|
$ |
16,148 |
|
|
0.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
2,378,365 |
|
|
|
|
|
|
1,497,177 |
|
|
|
|
|
Other non-interest bearing liabilities |
248,328 |
|
|
|
|
|
|
181,954 |
|
|
|
|
|
Total non-interest bearing liabilities |
2,626,693 |
|
|
|
|
|
|
1,679,131 |
|
|
|
|
|
Total liabilities |
11,395,961 |
|
|
|
|
|
|
8,501,709 |
|
|
|
|
|
Stockholders' equity |
1,638,194 |
|
|
|
|
|
|
1,421,748 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
13,034,155 |
|
|
|
|
|
|
$ |
9,923,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
$ |
90,000 |
|
|
|
|
|
|
$ |
72,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread |
|
|
|
|
2.98 |
% |
|
|
|
|
|
2.97 |
% |
Net
interest-earning assets |
$ |
2,859,695 |
|
|
|
|
|
|
$ |
2,128,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (3) |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total interest-bearing liabilities |
1.33x |
|
|
|
|
|
1.31x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average
outstanding balance amounts shown are amortized cost, net of
allowance for credit losses. |
(2) Average
outstanding balance are net of the allowance for loan losses,
deferred loan fees and expenses, loan premium and discounts and
include non-accrual loans. |
(3) Annualized
net interest income divided by average interest-earning
assets. |
The following
table summarizes the quarterly net interest margin for the previous
five quarters. |
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
3/31/20 |
|
1st Qtr. |
|
4th Qtr. |
|
3rd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
Securities |
1.87 |
% |
|
1.96 |
% |
|
2.12 |
% |
|
2.21 |
% |
|
2.57 |
% |
Net loans |
3.78 |
% |
|
3.72 |
% |
|
3.71 |
% |
|
3.76 |
% |
|
4.23 |
% |
Total interest-earning assets |
3.47 |
% |
|
3.44 |
% |
|
3.44 |
% |
|
3.47 |
% |
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
Total deposits |
0.39 |
% |
|
0.41 |
% |
|
0.44 |
% |
|
0.54 |
% |
|
0.78 |
% |
Total borrowings |
1.12 |
% |
|
1.16 |
% |
|
1.19 |
% |
|
1.31 |
% |
|
1.80 |
% |
Total interest-bearing liabilities |
0.49 |
% |
|
0.53 |
% |
|
0.57 |
% |
|
0.68 |
% |
|
0.95 |
% |
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
2.98 |
% |
|
2.91 |
% |
|
2.87 |
% |
|
2.79 |
% |
|
2.97 |
% |
Net interest margin |
3.10 |
% |
|
3.04 |
% |
|
3.01 |
% |
|
2.97 |
% |
|
3.20 |
% |
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
1.33 |
x |
|
1.33 |
x |
|
1.34 |
x |
|
1.35 |
x |
|
1.31 |
x |
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