8-K/A
0001676479true00016764792022-07-212022-07-21

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________

 

FORM 8-K/A

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): July 21, 2022

______________________________


CAPSTAR FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Tennessee

 

001-37886

 

81-1527911

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

 

1201 Demonbreun Street, Suite 700

Nashville, Tennessee

 

 

37203

 

 

(Address of principal executive offices)

 

(Zip Code)

 

 

 

Registrant’s telephone number, including area code (615) 732-6400

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $1.00 par value per share

 

CSTR

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 


 

 

EXPLANATORY NOTE

 

The Company is filing this Current Report on Form 8-K/A to amend the Current Report on Form 8-K furnished earlier on July 22, 2022 (the “Original Form 8-K”) to include a reference to Exhibit 99.2 in Items 7.01 and 9.01 as well as to replace Exhibit 99.2, an incorrect version of which was inadvertently furnished with the Original Form 8-K.

 

Item 2.02. Results of Operations and Financial Condition.

 

On July 21, 2022, CapStar Financial Holdings, Inc. (the “Company”) issued an earnings release announcing its financial results for the second quarter ended June 30, 2022. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”) and is incorporated herein by reference.

 

Item 7.01. Regulation FD Disclosure.

 

The information disclosed under Item 2.02 of this Report is incorporated by reference into this Item 7.01.

 

The Company will conduct a conference call at 9:00 a.m. (Central Time) on July 22, 2022 to discuss its financial results for the second quarter ended June 30, 2022. During the call, management will make reference to the presentation that is furnished as Exhibit 99.2 to this Current Report on form 8-K/A.

 

 

Item 9.01. Financial Statements and Exhibits.

 

Exhibit Number

 

Description

99.1

 

Earnings release issued on July 21, 2022 by CapStar Financial Holdings, Inc.

99.2

 

Presentation for conference call to be conducted by CapStar Financial Holdings, Inc. on July 22, 2022.

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CAPSTAR FINANCIAL HOLDINGS, INC.

 

 

By:

/s/ Michael J. Fowler

 

Michael J. Fowler

 

Chief Financial Officer

 

 

 

Date: July 22, 2022

 

3


EX-99.1

 

Exhibit 99.1

EARNINGS RELEASE

 

CONTACT

 

Michael J. Fowler

Chief Financial Officer

(615) 732-7404

 

 

https://cdn.kscope.io/cc0a2ae5b2bd6bafe26605ac7dff9cba-img25355703_0.jpg 

 

 

CapStar Reports Second Quarter 2022 Results

 

 

NASHVILLE, TN, July 21, 2022 (GLOBE NEWSWIRE) -- CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ:CSTR) today reported net income of $10.0 million or $0.45 per diluted share, for the quarter ended June 30, 2022, compared with net income of $10.7 million or $0.48 per diluted share, for the quarter ended March 31, 2022, and net income of $12.1 million or $0.54 per diluted share, for the quarter ended June 30, 2021. Annualized return on average assets and return on average equity for the quarter ended June 30, 2022 were 1.28 percent and 11.08 percent, respectively.

 

For the six months ended June 30, 2022, the Company reported net income of $20.6 million or $0.93 per diluted share, compared with $23.1 million or $1.04 per diluted share, for the same period of 2021. Year to date 2022 annualized return on average assets and return on average equity were 1.33 percent and 11.24 percent, respectively.

 

 

Four Key Drivers

 

Targets

 

2Q22

 

1Q22

 

2Q21

Annualized revenue growth

 

> 5%

 

1.15%

 

-46.31%

 

8.96%

Net interest margin

 

≥ 3.60%

 

3.41%

 

2.97%

 

3.26%

Efficiency ratio

 

≤ 55%

 

56.32%

 

58.67%

 

57.97%

Annualized net charge-offs to average loans

 

≤ 0.25%

 

0.00%

 

0.01%

 

0.01%

 

“CapStar’s associates delivered outstanding customer service and performance in the second quarter,” said Timothy K. Schools, CapStar President and Chief Executive Officer. “Each of our Four Key Drivers are progressing: 1) Outside of our specialty banking businesses, core bank revenue grew mid double digits compared to the prior year benefiting from robust loan growth, 2) our net interest margin expanded due to a favorable earning asset mix shift and modest benefit from rising rates, 3) we are working more productively, improving our efficiency ratio to 56%, and 4) net-charge offs were $0 and our past dues reached their second consecutive record low. Our positive results are attracting the attention of bankers seeking an environment where they and their customers can have a bigger voice. Last week, we were excited to announce additions to our Chattanooga and Nashville teams and entry into Asheville – our fourth dynamic metro market.”

 

“While rising rates benefited our core bank earnings, they slowed our mortgage and Tri-Net businesses. Mortgage results were near break-even. Tri-Net has been an outstanding business having contributed more than $25 million of revenue to CapStar over its life. However, Tri-Net did not produce a gain on sale during the quarter as the sharp increase in market rates and overall slowdown in demand reduced the value of Tri-Net’s funded loans. We are pursuing hedging strategies to mitigate this risk in the future. We expect each of these businesses to experience headwinds in the near-term until the rate environment stabilizes. We are proud of the strength of our earnings this quarter. We remain excited about the increasing contribution of our investments in new markets.”

 

 

 


 

Revenue


Total revenue, defined as net interest income plus noninterest income, was $30.3 million in the second quarter. This represents an increase of $0.1 million from the previous quarter. Net interest income and noninterest income totaled $24.4 million and $5.9 million, an increase of $3.3 and a decrease of $3.2 million, respectively, from the first quarter of 2022. Rising interest rates and a positive mix shift in average earning assets contributed to the increase in net interest income, while noninterest income declined due to lower mortgage and Tri-Net division revenues and one-time BOLI income in the previous quarter.

 

Second quarter 2022 average earning assets remained flat at $2.90 billion compared to March 31, 2022 as strong loan growth was principally funded from cash. During the quarter, $106.9 million of Tri-Net loans were transferred from loans held for sale to loans held for investment. Excluding PPP balances and the Tri-Net transfer, average loans held for investment increased $98.1 million from the prior quarter, or 19.8 percent linked-quarter annualized. End of period loans held for investment, excluding PPP balances and the Tri-Net transfer, increased $85.9 million, or 16.9 percent linked-quarter annualized, including $47.5 million in loan production from the Company's recent Chattanooga expansion. The current commercial loan pipeline remains strong, exceeding $500 million and continues to present the Company a tremendous opportunity in combination with the recent Asheville, Chattanooga, and Nashville hires to leverage capital to grow revenue and earnings per share.

 

For the second quarter of 2022, the net interest margin increased 44 basis points from the prior quarter to 3.41 percent primarily resulting from continued increases in interest rates and the positive mix shift in average earning assets. While the Company is managing to a more neutral interest rate risk profile over time in order to enhance earnings consistency, net interest income is expected to continue to benefit modestly from rising rates in 2022.

 

The Company's average deposits totaled $2.66 billion in the second quarter of 2022, a $40.3 million decline from the first quarter of 2022. During the quarter, the Company experienced a $15.8 million reduction in higher cost average time deposits and $33.5 million decrease in average interest-bearing transaction accounts. These decreases were partially offset by a $9.4 million increase in average savings and money market deposits, creating an overall net decrease of $39.9 million in average interest-bearing deposits when compared to the first quarter of 2022. During the quarter, the Company’s lowest cost deposit category, noninterest bearing, improved 40 basis points to 27.3 percent of total average deposits as of June 30, 2022. Total deposit costs increased 4 basis points to 0.23 percent compared to 0.19 for the prior quarter. A key longer-term strategic initiative is to create a stronger deposit-led culture with an emphasis on lower cost relationship-based deposits.

 

Noninterest income during the quarter decreased $3.2 million from the first quarter ended March 31, 2022. This decrease was attributable to a $0.3 million decline in mortgage revenue, a $2.2 million decline in Tri-Net revenue and $0.9 million of one-time BOLI income recorded in the previous quarter. During the quarter, $106.9 million of Tri-Net loans were transferred from loans held for sale to loans held for investment to mitigate potential losses related to the adverse impact of rapidly rising interest rates on pricing and investor demand. The Company’s mortgage and Tri-Net divisions have been strong contributors in the past, but it is anticipated that they will continue to face challenges in the volatile rate environment.

 

Noninterest Expense and Operating Efficiency

 

Improving productivity and operating efficiency is a key focus of the Company. During the quarter, the Company continued to exhibit strong expense discipline. Noninterest expenses decreased $0.7 million from the first quarter of 2022 to $17.1 million in the second quarter of 2022. This decrease was primarily attributable to a decline in nonrecurring first quarter items and no mortgage incentive expense.

 

For the quarter ended June 30, 2022, the efficiency ratio was 56.32 percent, an improvement from 58.67 percent in the first quarter of 2022. Annualized noninterest expense as a percentage of average assets improved 9 basis points to 2.19 percent for the quarter ended June 30, 2022 compared to 2.28 percent for the quarter ended March 31, 2022. Assets per employee was $7.9 million as of June 30, 2022 compared to $8.0 million in the previous quarter. The continued discipline in productivity metrics demonstrates the Company's commitment to outstanding performance.

 

 


 

Asset Quality

 

Strong asset quality is a core tenant of the Company’s culture. Continued sound risk management and an improving economy led to continued low net charge-offs and strong credit metrics. Annualized net charge-offs to average loans for the three months ended June 30, 2022 were 0.00 percent. Past due loans as a percentage of total loans held for investment improved to a record 0.12 percent at June 30, 2022 compared to 0.17 percent at March 31, 2022. Within this amount, loans greater than 90 days past due totaled $0.5 million, or 0.02 percent of loans held for investment at June 30, 2022, an improvement from 0.05 percent at March 31, 2022. Non-performing assets to total loans and OREO improved to 0.11 percent at June 30, 2022 compared to 0.18 percent at March 31, 2022. Criticized and classified loans to total loans, which were elevated during the pandemic, continued to improve to 2.12 percent at June 30, 2022, a 37 basis point improvement from March 31, 2022.

 

The Company recorded a provision for loan losses of $0.8 million during the quarter as a result of continued strong loan growth. Due to improved credit trends, the allowance for loan losses plus the fair value mark on acquired loans to total loans, less PPP loans, declined 7 basis points to 1.09 percent at June 30, 2022 from 1.16 percent at March 31, 2022.

 

Asset Quality Data:

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

Annualized net charge-offs to average loans

 

 

0.00

%

 

 

0.01

%

 

 

0.04

%

 

 

0.05

%

 

 

0.01

%

Criticized and classified loans to total loans

 

 

2.12

%

 

 

2.49

%

 

 

2.64

%

 

 

2.85

%

 

 

3.95

%

Loans- past due to total end of period loans

 

 

0.12

%

 

 

0.17

%

 

 

0.25

%

 

 

0.31

%

 

 

0.49

%

Loans- over 90 days past due to total end of period loans

 

 

0.02

%

 

 

0.05

%

 

 

0.11

%

 

 

0.12

%

 

 

0.13

%

Non-performing assets to total loans held for investment and OREO

 

 

0.11

%

 

 

0.18

%

 

 

0.18

%

 

 

0.20

%

 

 

0.22

%

Allowance for loan losses plus fair value marks / Non-PPP Loans

 

 

1.09

%

 

 

1.16

%

 

 

1.27

%

 

 

1.41

%

 

 

1.47

%

Allowance for loan losses to non-performing loans

 

 

974

%

 

 

596

%

 

 

666

%

 

 

657

%

 

 

571

%

 

Income Tax Expense

 

The Company’s second quarter effective income tax rate remained flat at 19.6 percent when compared to the prior quarter ended March 31, 2022. The Company anticipates its effective tax rate for 2022 to be approximately 20 percent.

 

Capital

 

The Company continues to be well capitalized with tangible equity of $310.9 million at June 30, 2022. Tangible book value per share of common stock for the quarter ended June 30, 2022 was $14.17 compared to $14.49 and $14.03 for the quarters ended March 31, 2022 and June 30, 2021, respectively, with the change from March 31, 2022 being attributable to a decline in the value of the investment portfolio related to an increase in market interest rates, partially offset by ongoing earnings. Excluding the impact of after-tax gain or loss within the available for sale investment portfolio, tangible book value per share of common stock for the quarter ended June 30, 2022 was $15.86 compared to $15.53 and $14.02 for the quarters ended March 31, 2022 and June 30, 2021, respectively.

 

Capital ratios:

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

Total risk-based capital

 

 

14.79

%

 

 

15.60

%

 

 

16.29

%

 

 

16.23

%

 

 

16.13

%

Common equity tier 1 capital

 

 

12.87

%

 

 

13.58

%

 

 

14.11

%

 

 

13.95

%

 

 

13.78

%

Leverage

 

 

11.10

%

 

 

10.99

%

 

 

10.69

%

 

 

10.28

%

 

 

10.17

%

 

In the second quarter of 2022, the Company repurchased $5.4 million in common stock under its share repurchase program. The total remaining authorization for future purchases was $23.9 million as of June 30, 2022. The Plan will terminate on the earlier of the date on which the maximum authorized dollar amount of shares of common stock has been repurchased or January 31, 2023.

 

 

 


 

Dividend

 

On July 20, 2022, the Board of Directors of the Company approved a quarterly dividend of $0.10 per common share payable on August 24, 2022 to shareholders of record of CapStar’s common stock as of the close of business on August 10, 2022.

 

Conference Call and Webcast Information

 

CapStar will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 22, 2022. During the call, management will review the second quarter results and operational highlights. Interested parties may listen to the call by registering here to access the live call, including for participants who plan to ask a question during the call. A simultaneous webcast may be accessed on CapStar’s website at ir.capstarbank.com by clicking on “News & Events.” An archived version of the webcast will be available in the same location shortly after the live call has ended.

 

About CapStar Financial Holdings, Inc.

 

CapStar Financial Holdings, Inc. is a bank holding company headquartered in Nashville, Tennessee and operates primarily through its wholly owned subsidiary, CapStar Bank, a Tennessee-chartered state bank. CapStar Bank is a commercial bank that seeks to establish and maintain comprehensive relationships with its clients by delivering customized and creative banking solutions and superior client service. As of June 30, 2022, on a consolidated basis, CapStar had total assets of $3.1 billion, total loans of $2.2 billion, total deposits of $2.6 billion, and shareholders’ equity of $357.7 million. Visit www.capstarbank.com for more information.

 

 


 

NON-GAAP MEASURES

 

Certain releases include financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information may include certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations. Such measures may include: “Efficiency ratio – operating,” “Expenses – operating,” “Earnings per share – operating,” “Diluted earnings per share – operating,” “Tangible book value per share,” “Return on common equity – operating,” “Return on tangible common equity – operating,” “Return on assets – operating,” and “Tangible common equity to tangible assets.”

 

Management may include these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating CapStar’s underlying performance trends. Further, management uses these measures in managing and evaluating CapStar’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this presentation.

 

 


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Consolidated Statements of Income (unaudited) (dollars in thousands, except share data)

Second quarter 2022 Earnings Release

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

23,775

 

 

$

22,572

 

 

$

44,141

 

 

$

44,586

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,922

 

 

 

1,640

 

 

 

3,677

 

 

 

3,244

 

Tax-exempt

 

 

319

 

 

 

356

 

 

 

644

 

 

 

722

 

Federal funds sold

 

 

14

 

 

 

3

 

 

 

24

 

 

 

3

 

Restricted equity securities

 

 

173

 

 

 

160

 

 

 

329

 

 

 

321

 

Interest-bearing deposits in financial institutions

 

 

286

 

 

 

101

 

 

 

458

 

 

 

234

 

Total interest income

 

 

26,489

 

 

 

24,832

 

 

 

49,273

 

 

 

49,110

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

638

 

 

 

379

 

 

 

1,074

 

 

 

826

 

Savings and money market accounts

 

 

467

 

 

 

295

 

 

 

797

 

 

 

608

 

Time deposits

 

 

454

 

 

 

732

 

 

 

938

 

 

 

1,663

 

Federal Home Loan Bank advances

 

 

96

 

 

 

 

 

 

96

 

 

 

12

 

Subordinated notes

 

 

394

 

 

 

394

 

 

 

788

 

 

 

788

 

Total interest expense

 

 

2,049

 

 

 

1,800

 

 

 

3,693

 

 

 

3,897

 

Net interest income

 

 

24,440

 

 

 

23,032

 

 

 

45,580

 

 

 

45,213

 

Provision for loan losses

 

 

843

 

 

 

(1,065

)

 

 

59

 

 

 

(415

)

Net interest income after provision for loan losses

 

 

23,597

 

 

 

24,097

 

 

 

45,521

 

 

 

45,628

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

1,182

 

 

 

1,109

 

 

 

2,324

 

 

 

2,211

 

Interchange and debit card transaction fees

 

 

1,336

 

 

 

1,227

 

 

 

2,558

 

 

 

2,318

 

Mortgage banking

 

 

1,705

 

 

 

3,910

 

 

 

3,671

 

 

 

8,625

 

Tri-Net

 

 

(73

)

 

 

1,536

 

 

 

2,098

 

 

 

2,679

 

Wealth management

 

 

459

 

 

 

471

 

 

 

899

 

 

 

931

 

SBA lending

 

 

273

 

 

 

377

 

 

 

494

 

 

 

870

 

Net gain on sale of securities

 

 

 

 

 

(13

)

 

 

 

 

 

13

 

Other noninterest income

 

 

994

 

 

 

1,266

 

 

 

2,921

 

 

 

2,250

 

Total noninterest income

 

 

5,876

 

 

 

9,883

 

 

 

14,965

 

 

 

19,897

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,209

 

 

 

10,803

 

 

 

19,478

 

 

 

20,229

 

Data processing and software

 

 

2,847

 

 

 

3,070

 

 

 

5,494

 

 

 

5,898

 

Occupancy

 

 

1,076

 

 

 

1,057

 

 

 

2,174

 

 

 

2,165

 

Equipment

 

 

783

 

 

 

980

 

 

 

1,492

 

 

 

1,880

 

Professional services

 

 

506

 

 

 

460

 

 

 

1,185

 

 

 

1,165

 

Regulatory fees

 

 

265

 

 

 

211

 

 

 

545

 

 

 

467

 

Acquisition related expenses

 

 

 

 

 

256

 

 

 

 

 

 

323

 

Amortization of intangibles

 

 

430

 

 

 

493

 

 

 

876

 

 

 

1,001

 

Other operating

 

 

1,959

 

 

 

1,750

 

 

 

3,566

 

 

 

3,364

 

Total noninterest expense

 

 

17,075

 

 

 

19,080

 

 

 

34,810

 

 

 

36,492

 

Income before income taxes

 

 

12,398

 

 

 

14,900

 

 

 

25,676

 

 

 

29,033

 

Income tax expense

 

 

2,426

 

 

 

2,824

 

 

 

5,031

 

 

 

5,927

 

Net income

 

$

9,972

 

 

$

12,076

 

 

$

20,645

 

 

$

23,106

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.45

 

 

$

0.55

 

 

$

0.93

 

 

$

1.05

 

Diluted net income per share of common stock

 

$

0.45

 

 

$

0.54

 

 

$

0.93

 

 

$

1.04

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,022,109

 

 

 

22,133,759

 

 

 

22,109,737

 

 

 

22,089,874

 

Diluted

 

 

22,074,260

 

 

 

22,198,829

 

 

 

22,163,954

 

 

 

22,138,052

 

 

This information is preliminary and based on CapStar data available at the time of this earnings release.

 


 

CAPSTAR FINANCIAL HOLDINGS, INC. AND SUBSIDIARY

Selected Quarterly Financial Data (unaudited) (dollars in thousands, except share data)

Second quarter 2022 Earnings Release

 

 

Five Quarter Comparison

 

 

 

6/30/2022

 

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

24,440

 

 

$

21,140

 

 

$

22,992

 

 

$

22,964

 

 

$

23,032

 

Provision for loan losses

 

 

843

 

 

 

(784

)

 

 

(651

)

 

 

 

 

 

(1,065

)

Net interest income after provision for loan losses

 

 

23,597

 

 

 

21,924

 

 

 

23,643

 

 

 

22,964

 

 

 

24,097

 

Deposit service charges

 

 

1,182

 

 

 

1,142

 

 

 

1,117

 

 

 

1,187

 

 

 

1,109

 

Interchange and debit card transaction fees

 

 

1,336

 

 

 

1,222

 

 

 

1,261

 

 

 

1,236

 

 

 

1,227

 

Mortgage banking

 

 

1,705

 

 

 

1,966

 

 

 

2,740

 

 

 

4,693

 

 

 

3,910

 

Tri-Net

 

 

(73

)

 

 

2,171

 

 

 

3,996

 

 

 

1,939

 

 

 

1,536

 

Wealth management

 

 

459

 

 

 

440

 

 

 

438

 

 

 

481

 

 

 

471

 

SBA lending

 

 

273

 

 

 

222

 

 

 

279

 

 

 

911

 

 

 

377

 

Net gain (loss) on sale of securities

 

 

 

 

 

 

 

 

8

 

 

 

7

 

 

 

(13

)

Other noninterest income

 

 

994

 

 

 

1,926

 

 

 

1,295

 

 

 

1,197

 

 

 

1,266

 

Total noninterest income

 

 

5,876

 

 

 

9,089

 

 

 

11,134

 

 

 

11,651

 

 

 

9,883

 

Salaries and employee benefits

 

 

9,209

 

 

 

10,269

 

 

 

10,549

 

 

 

10,980

 

 

 

10,803

 

Data processing and software

 

 

2,847

 

 

 

2,647

 

 

 

2,719

 

 

 

2,632

 

 

 

3,070

 

Occupancy

 

 

1,076

 

 

 

1,099

 

 

 

1,012

 

 

 

1,028

 

 

 

1,057

 

Equipment

 

 

783

 

 

 

709

 

 

 

867

 

 

 

760

 

 

 

980

 

Professional services

 

 

506

 

 

 

679

 

 

 

521

 

 

 

469

 

 

 

460

 

Regulatory fees

 

 

265

 

 

 

280

 

 

 

284

 

 

 

279

 

 

 

211

 

Acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

256

 

Amortization of intangibles

 

 

430

 

 

 

446

 

 

 

461

 

 

 

477

 

 

 

493

 

Other noninterest expense

 

 

1,959

 

 

 

1,607

 

 

 

2,269

 

 

 

1,741

 

 

 

1,750

 

Total noninterest expense

 

 

17,075

 

 

 

17,736

 

 

 

18,682

 

 

 

18,366

 

 

 

19,080

 

Net income before income tax expense

 

 

12,398

 

 

 

13,277

 

 

 

16,095

 

 

 

16,249

 

 

 

14,900

 

Income tax expense

 

 

2,426

 

 

 

2,604

 

 

 

3,625

 

 

 

3,147

 

 

 

2,824

 

Net income

 

$

9,972

 

 

$

10,673

 

 

$

12,470

 

 

$

13,102

 

 

$

12,076

 

Weighted average shares - basic

 

 

22,022,109

 

 

 

22,198,339

 

 

 

22,166,410

 

 

 

22,164,278

 

 

 

22,133,759

 

Weighted average shares - diluted

 

 

22,074,260

 

 

 

22,254,644

 

 

 

22,221,989

 

 

 

22,218,402

 

 

 

22,198,829

 

Net income per share, basic

 

$

0.45

 

 

$

0.48

 

 

$

0.56

 

 

$

0.59

 

 

$

0.55

 

Net income per share, diluted

 

 

0.45

 

 

 

0.48

 

 

 

0.56

 

 

 

0.59

 

 

 

0.54

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

113,825

 

 

$

355,981

 

 

$

415,125

 

 

$

359,267

 

 

$

449,267

 

Securities available-for-sale

 

 

437,420

 

 

 

460,558

 

 

 

459,396

 

 

 

483,778

 

 

 

500,339

 

Securities held-to-maturity

 

 

1,769

 

 

 

1,775

 

 

 

1,782

 

 

 

1,788

 

 

 

2,395

 

Loans held for sale

 

 

85,884

 

 

 

106,895

 

 

 

83,715

 

 

 

176,488

 

 

 

158,234

 

Loans held for investment

 

 

2,234,833

 

 

 

2,047,555

 

 

 

1,965,769

 

 

 

1,894,249

 

 

 

1,897,838

 

Allowance for loan losses

 

 

(21,684

)

 

 

(20,857

)

 

 

(21,698

)

 

 

(22,533

)

 

 

(22,754

)

Total assets

 

 

3,096,537

 

 

 

3,190,749

 

 

 

3,133,046

 

 

 

3,112,127

 

 

 

3,212,390

 

Non-interest-bearing deposits

 

 

717,167

 

 

 

702,172

 

 

 

725,171

 

 

 

718,299

 

 

 

782,170

 

Interest-bearing deposits

 

 

1,913,320

 

 

 

2,053,823

 

 

 

1,959,110

 

 

 

1,956,093

 

 

 

1,998,024

 

Federal Home Loan Bank advances and other borrowings

 

 

74,599

 

 

 

29,566

 

 

 

29,532

 

 

 

29,499

 

 

 

29,487

 

Total liabilities

 

 

2,738,802

 

 

 

2,821,832

 

 

 

2,752,952

 

 

 

2,741,799

 

 

 

2,852,639

 

Shareholders' equity

 

$

357,735

 

 

$

368,917

 

 

$

380,094

 

 

$

370,328

 

 

$

359,752

 

Total shares of common stock outstanding

 

 

21,934,554

 

 

 

22,195,071

 

 

 

22,166,129

 

 

 

22,165,760

 

 

 

22,165,547

 

Book value per share of common stock

 

$

16.31

 

 

$

16.62

 

 

$

17.15

 

 

$

16.71

 

 

$

16.23

 

Tangible book value per share of common stock*

 

 

14.17

 

 

 

14.49

 

 

 

14.99

 

 

 

14.53

 

 

 

14.03

 

Tangible book value per share of common stock less after-tax
 unrealized available for sale investment
(gains) losses*

 

 

15.86

 

 

 

15.53

 

 

 

15.13

 

 

 

14.59

 

 

 

14.02

 

Market value per share of common stock

 

$

19.62

 

 

$

21.08

 

 

$

21.03

 

 

$

21.24

 

 

$

20.50

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital

 

 

14.79

%

 

 

15.60

%

 

 

16.29

%

 

 

16.23

%

 

 

16.13