PLANO, Texas, Jan. 27, 2015 /PRNewswire/ -- LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) (NASDAQ: LTXB) (the "Company"), the holding company for LegacyTexas Bank (the "Bank"), today announced net income of $5.5 million and core net income (which is net income adjusted for the impact of merger and acquisition costs and certain other items) of $11.2 million for the quarter ended December 31, 2014. Basic earnings per share for the quarter ended December 31, 2014, was $0.14, while core basic earnings per share for the same period was $0.29. Net income for the year ended December 31, 2014 totaled $31.3 million, or $0.82 basic earnings per share, and core net income for the same period totaled $38.9 million, or $1.03 basic earnings per share. The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.
For the Quarters Ended | Linked Quarter | Year-over-Year | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
Q4 2014 | Q3 2014 | Q4 2013 | $ change | % change | $ change | % change | 2014 | 2013 | $ change | % change | ||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts; all periods unaudited except for net income and earnings per share for full year 2013) | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 5,466 | $ | 9,312 | $ | 7,244 | $ | (3,846) | (41.3)% | $ | (1,778) | (24.5)% | $ | 31,278 | $ | 31,688 | $ | (410) | (1.3)% | |||||||||||||||||||||
Core net income | 11,186 | 10,026 | 7,776 | 1,160 | 11.6 | 3,410 | 43.9 | 38,902 | 32,096 | 6,806 | 21.2 | |||||||||||||||||||||||||||||
Basic EPS | 0.14 | 0.24 | 0.19 | (0.10) | (41.7) | (0.05) | (26.3) | 0.82 | 0.83 | (0.01) | (1.2) | |||||||||||||||||||||||||||||
Core basic EPS | 0.29 | 0.26 | 0.21 | 0.03 | 11.5 | 0.08 | 38.1 | 1.03 | 0.85 | 0.18 | 21.2 | |||||||||||||||||||||||||||||
Fourth Quarter 2014 Performance Highlights
- Loans held for investment at December 31, 2014, excluding Warehouse Purchase Program loans, grew $144.6 million, or 5.8%, from September 30, 2014, with commercial loans ending the year at $2.06 billion, an increase of $133.9 million, or 6.9%, from the linked quarter. Since December 31, 2013, loans held for investment, excluding Warehouse Purchase Program loans, grew by $583.8 million, or 28.5%, including a $503.8 million, or 32.3%, increase in commercial loans.
- Warehouse Purchase Program loans at December 31, 2014, grew on both a linked-quarter and year-over-year basis, increasing by $49.8 million, or 6.8%, from September 30, 2014, and by $112.9 million, or 16.8%, from December 31, 2013.
- Net interest income for the fourth quarter of 2014 increased by $1.2 million, or 3.3%, from the linked quarter and $5.8 million, or 19.2%, from the fourth quarter of 2013. Non-interest income grew on both a linked-quarter and year-over-year basis. Excluding the impact of merger and acquisition costs, non-interest expense declined by $89,000 from the third quarter of 2014 and by $2.0 million from the fourth quarter of 2013.
- Deposits increased by $161.3 million, or 6.5%, from September 30, 2014, with growth in all deposit categories. Compared to December 31, 2013, deposits increased by $393.2 million, or 17.4%.
- Net interest margin for the quarter ended December 31, 2014 was 3.84%, a four basis point increase from the linked quarter and a one basis point increase compared to the fourth quarter of 2013.
"2014 was a great year for the Company," said President and CEO Kevin Hanigan. "Core earnings were up for both the year and the fourth quarter, loans and deposits continued to show impressive growth, our net interest margin improved and we controlled our operating costs. Closing the merger with LegacyTexas on January 1 was a great way to start 2015. With most of the one-time costs related to the merger now behind us, we look forward to executing our plans for 2015."
On January 1, 2015, the Company completed its merger with LegacyTexas Group, Inc. and changed its name from ViewPoint Financial Group, Inc. to LegacyTexas Financial Group, Inc. On January 2, the Company's common stock began trading on the NASDAQ Global Select Market under the ticker symbol LTXB. The Company's bank subsidiary, ViewPoint Bank, N.A., was merged into LegacyTexas Bank, the banking subsidiary of LegacyTexas Group, Inc. ViewPoint Bank will publicly adopt the LegacyTexas name when the bank's branch and branding integration is complete on February 17. At that time, customers of both institutions will be able to conduct business at any LegacyTexas Bank location.
At completion of the merger, Mays Davenport (Executive Vice President of LegacyTexas Bank) joined the Company as Executive Vice President and Chief Financial Officer, and George Fisk (Chief Executive Officer and Vice Chairman of LegacyTexas Group, Inc.) and Greg Wilkinson (director of LegacyTexas Group, Inc.) began serving on the Boards of Directors of the Company and the merged LegacyTexas Bank. Kevin Hanigan continues to serve the Company and the merged LegacyTexas Bank as President and Chief Executive Officer. Additionally, Arcilia Acosta, who has served on the Board of Directors of ViewPoint Bank since 2013, was appointed to the Board of Directors of the Company, effective January 1, 2015.
Financial Highlights
At or For the Quarters Ended | |||||||||||
December | September | December | |||||||||
(unaudited) | 2014 | 2014 | 2013 | ||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Net interest income | $ | 35,830 | $ | 34,670 | $ | 30,069 | |||||
Provision for loan losses | 2,637 | 2,511 | 616 | ||||||||
Non-interest income | 5,294 | 5,058 | 5,005 | ||||||||
Non-interest expense | 29,796 | 22,791 | 24,128 | ||||||||
Income tax expense | 3,225 | 5,114 | 3,086 | ||||||||
Net income | $ | 5,466 | $ | 9,312 | $ | 7,244 | |||||
Basic earnings per common share | $ | 0.14 | $ | 0.24 | $ | 0.19 | |||||
Basic core (non-GAAP) earnings per common share2 | $ | 0.29 | $ | 0.26 | $ | 0.21 | |||||
Weighted average common shares outstanding - basic | 38,051,511 | 37,971,790 | 37,686,866 | ||||||||
Estimated Tier 1 risk-based capital ratio1 | 15.14 | % | 16.04 | % | 18.17 | % | |||||
Total equity to total assets | 13.65 | % | 14.28 | % | 15.44 | % | |||||
Tangible common equity to tangible assets - Non-GAAP 2 | 13.01 | % | 13.61 | % | 14.70 | % | |||||
1 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve. |
2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document. |
Net Interest Income and Net Interest Margin
For the Quarters Ended | |||||||||||
December | September | December | |||||||||
(unaudited) | 2014 | 2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||||
Interest income: | |||||||||||
Loans held for investment, excluding Warehouse Purchase Program loans | $ | 31,667 | $ | 30,134 | $ | 26,050 | |||||
Warehouse Purchase Program loans | 5,440 | 5,738 | 5,138 | ||||||||
Securities | 2,808 | 2,926 | 3,273 | ||||||||
Interest-earning deposit accounts | 64 | 57 | 38 | ||||||||
Total interest income | $ | 39,979 | $ | 38,855 | $ | 34,499 | |||||
Net interest income | $ | 35,830 | 34,670 | $ | 30,069 | ||||||
Net interest margin | 3.84 | % | 3.80 | % | 3.83 | % | |||||
Selected average balances: | |||||||||||
Total earning assets | $ | 3,732,058 | $ | 3,652,243 | $ | 3,139,253 | |||||
Total loans | $ | 3,120,214 | $ | 3,029,047 | $ | 2,482,274 | |||||
Total securities | $ | 505,692 | $ | 532,950 | $ | 592,769 | |||||
Total deposits | $ | 2,612,125 | $ | 2,469,482 | $ | 2,240,333 | |||||
Total borrowings | $ | 654,396 | $ | 733,615 | $ | 468,855 | |||||
Total non-interest-bearing demand deposits | $ | 473,996 | $ | 456,115 | $ | 404,087 | |||||
Total interest-bearing liabilities | $ | 2,792,525 | $ | 2,746,982 | $ | 2,305,101 | |||||
Net interest income for the quarter ended December 31, 2014, was $35.8 million, a $1.2 million increase from the third quarter of 2014 and a $5.8 million increase from the fourth quarter of 2013. The $1.2 million increase from the linked quarter was due to an increase in interest income on loans, which was driven by increased volume in commercial real estate and commercial and industrial loans. The average balance of commercial and industrial loans increased by $68.1 million, or 10.3%, to $730.6 million from the third quarter of 2014, resulting in a $1.1 million increase in interest income. Additionally, the average balance of commercial real estate loans increased by $42.0 million, or 3.5%, from the linked quarter, contributing $439,000 of the increase in interest income. The increases in interest income driven by commercial loan volume was partially offset by a $298,000 decline in interest income on Warehouse Purchase Program loans, as the average balance of the portfolio declined by $25.4 million on a linked-quarter basis.
Interest expense for the quarter ended December 31, 2014, slightly decreased compared to the linked quarter, declining by $36,000, or 0.86%. A $133,000 linked-quarter increase in interest expense related to savings and money market accounts was offset by a $180,000 decrease in interest expense related to borrowings. The average balance of borrowings declined by $79.2 million, or 10.8%, from the linked quarter, which was primarily related to the decline in the Warehouse Purchase Program average balance for the same period, as these loans are partially funded by short-term advances.
The $5.8 million increase in net interest income compared to the fourth quarter of 2013 was due to a $5.9 million, or 19.0%, increase in interest income on loans, which was driven by higher commercial loan volume. For the quarter ended December 31, 2014, the average balance of commercial and industrial loans increased by $338.8 million, or 86.4%, compared to the quarter ended December 31, 2013, which resulted in a $3.2 million increase in interest income. Additionally, the average balance of commercial real estate loans increased by $152.9 million, or 14.2%, for the quarter ended December 31, 2014, compared to the same period in 2013, contributing $1.7 million of the increase in interest income. Increased volume in consumer real estate and Warehouse Purchase Program loans also added to the growth in interest income on a year-over-year basis, which was partially offset by reductions in yields earned on most loan portfolios.
Compared to the fourth quarter of 2013, interest expense for the quarter ended December 31, 2014, decreased by $281,000, or 6.3%, which was primarily due to a 35 basis point reduction in the average rate paid on time deposits, as well as a 65 basis point decrease in the average rate paid on borrowings. Average balances of savings, money market and time deposits, as well as the average balance of borrowings, increased compared to the fourth quarter of 2013, which partially offset the decline in interest expense related to lower rates.
The net interest margin for the fourth quarter of 2014 was 3.84%, a four basis point increase from the third quarter of 2014 and a one basis point increase from the fourth quarter of 2013. Accretion of interest related to the 2012 Highlands acquisition contributed three basis points to the net interest margin for the quarter ended December 31, 2014, compared to three basis points for the quarter ended September 30, 2014, and ten basis points for the quarter ended December 31, 2013. The average yield on earning assets for the fourth quarter of 2014 was 4.28%, a two basis point increase from the third quarter of 2014 and a 12 basis point decrease from the fourth quarter of 2013. The cost of deposits for the fourth quarter of 2014 was 0.33%, unchanged from the third quarter of 2014 and a seven basis point decrease from the fourth quarter of 2013.
Non-interest Income
Non-interest income for the fourth quarter of 2014 was $5.3 million, a $236,000, or 4.7%, increase from the third quarter of 2014 and a $289,000, or 5.8%, increase from the fourth quarter of 2013. The increase from the linked quarter was primarily due to a $153,000, or 3.3%, increase in service charges and fees, which was driven by an increase in commercial loan pre-prepayment and other one-time commercial loan fees. Additionally, the increase in non-interest income from the linked quarter included a $100,000 increase in the gain (loss) on sale and disposition of assets, attributable to a net gain of $11,000 on other real estate owned recognized in the fourth quarter of 2014, compared to a net loss of $85,000 on other real estate owned recognized in the third quarter of 2014.
The $289,000 increase in non-interest income for the fourth quarter of 2014 was primarily due to a $465,000, or 10.9%, increase in service charges and fees compared to the fourth quarter of 2013. This growth in service charges and fees was driven by increased commercial loan pre-payment and debit card fee income, and was partially offset by a $105,000 decline in the gain (loss) on sale and disposition of assets, primarily related to a gain recognized on a purchased credit impaired loan obtained in the Highlands acquisition that was paid in full during the fourth quarter of 2013, with no comparable gain recognized in the 2014 period.
Non-interest Expenses
Non-interest expense for the quarter ended December 31, 2014 was $29.8 million, a $7.0 million, or 30.7%, increase from the third quarter of 2014, and a $5.7 million, or 23.5%, increase from the fourth quarter of 2013. The linked-quarter increase includes a $7.1 million increase in merger and acquisition costs related to the merger with LegacyTexas Group, Inc., which was completed on January 1, 2015. Excluding the impact of these merger costs, non-interest expense declined by $89,000, which was driven by a $524,000, or 3.8%, decrease in salaries and employee benefits expense, primarily due to reductions in salary and incentive accruals compared to the linked quarter. In the latter half of 2014, several high-level employees left the Company in advance of the merger with LegacyTexas Group, Inc. This decline was partially offset by a $163,000 increase in advertising expense and a $142,000 increase in outside professional services expense.
The increase in non-interest expense from the fourth quarter of 2013 includes a $7.6 million increase in merger and acquisition costs related to the merger with LegacyTexas Group, Inc., which was completed on January 1, 2015. Excluding the impact of these merger costs, non-interest expense declined by $2.0 million, which was driven by a $1.2 million, or 8.4%, decrease in salaries and employee benefits expense, primarily due to reductions in salary and incentive accruals compared to the fourth quarter of 2013 related to a decrease in the number of employees. This was partially offset by a $622,000 increase in restricted stock expense, caused by $666,000 of expense that was reversed in the 2013 period due to the cancellation of certain stock awards that did not meet performance-based vesting conditions, with no comparable expense reversals recognized in the current period. Compared to the fourth quarter of 2013, advertising expense decreased by $335,000, while occupancy and equipment and office operations expense declined by $261,000 and $160,000, respectively.
Financial Condition
Gross loans held for investment at December 31, 2014, excluding Warehouse Purchase Program loans, increased by $144.6 million, or 5.8%, from September 30, 2014, and by $583.8 million, or 28.5%, from December 31, 2013, with increased commercial lending driving the loan growth. Commercial real estate loan balances at December 31, 2014 increased by $46.4 million, or 3.8%, from September 30, 2014, and by $174.7 million, or 16.0%, from December 31, 2013. Commercial and industrial loans at December 31, 2014 increased by $86.3 million, or 12.4%, from September 30, 2014, and by $342.4 million, or 77.9%, from December 31, 2013. Warehouse Purchase Program loans at December 31, 2014 increased by $49.8 million, or 6.8%, from September 30, 2014, and by $112.9 million, or 16.8%, from December 31, 2013. Consumer loans at December 31, 2014 increased by $7.5 million, or 1.3%, from September 30, 2014, and by $75.7 million, or 15.5%, from December 31, 2013.
Energy loans, which are reported as commercial and industrial loans, totaled $359.6 million at December 31, 2014, up $76.0 million from $283.6 million at September 30, 2014, and up $193.1 million from December 31, 2013. In May 2013, the Company formed its Energy Finance group, which is comprised of a group of seasoned lenders, executives, and credit risk professionals with more than 100 years of combined Texas energy experience, to focus on providing loans to private and public oil and gas companies throughout the United States. The group also offers the Bank's full array of commercial services, including Treasury Management and letters of credit, to its customers. The vast majority of the loans in the Energy portfolio are reserve based loans, secured by deeds of trust on properties containing both oil and natural gas reserves. Four loans managed by the Energy Finance group are not secured by oil and gas reserves. These loans, with a combined commitment of $39.5 million and a total outstanding balance of $16.5 million at December 31, 2014, are categorized as "Midstream and Other" loans. Loans in this category are typically related to the transmission of oil and natural gas and would have only an indirect impact from declining commodity prices.
Total deposits at December 31, 2014 increased by $161.3 million, or 6.5%, from September 30, 2014, and by $393.2 million, or 17.4%, from December 31, 2013. Savings and money market deposits increased by $118.8 million, or 11.2%, from September 30, 2014, and by $272.2 million, or 30.1%, from December 31, 2013. Over the past year, non-interest-bearing demand deposits have grown by $83.4 million, or 20.3%, and totaled $494.4 million at December 31, 2014, or 18.6% of total deposits. This increase was driven by higher balances in commercial checking products. Time deposits increased by $13.6 million, or 2.7%, from September 30, 2014, and by $39.4 million, or 8.3%, from December 31, 2013.
Total shareholders' equity increased by $4.1 million to $568.2 million at December 31, 2014, from $564.1 million at September 30, 2014. The Company's tangible common equity ratio was 13.01% at December 31, 2014, a decrease of 60 basis points from September 30, 2014, and 169 basis points from December 31, 2013.
Credit Quality
At or For the Quarters Ended | |||||||||||
December | September | December | |||||||||
(unaudited) | 2014 | 2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||||
Net charge-offs (recoveries) | $ | (327) | $ | 366 | $ | 127 | |||||
Net charge-offs (recoveries)/Average loans held for investment, excluding Warehouse Purchase Program loans | (0.05)% | 0.06% | 0.03% | ||||||||
Net charge-offs (recoveries)/Average loans held for investment | (0.04) | 0.05 | 0.02 | ||||||||
Provision for loan losses | $ | 2,637 | $ | 2,511 | $ | 616 | |||||
Non-performing loans ("NPLs") | 23,507 | 24,382 | 22,124 | ||||||||
NPLs/Total loans held for investment, excluding Warehouse Purchase Program loans | 0.89% | 0.98% | 1.08% | ||||||||
NPLs/Total loans held for investment | 0.69 | 0.76 | 0.81 | ||||||||
Non-performing assets ("NPAs") | $ | 24,058 | $ | 24,488 | $ | 22,604 | |||||
NPAs to total assets | 0.58% | 0.62% | 0.64% | ||||||||
NPAs/Loans held for investment and foreclosed assets, excluding Warehouse Purchase Program loans | 0.91 | 0.98 | 1.10 | ||||||||
NPAs/Loans held for investment and foreclosed assets | 0.70 | 0.76 | 0.83 | ||||||||
Allowance for loan losses | $ | 25,549 | $ | 22,585 | $ | 19,358 | |||||
Allowance for loan losses/Total loans held for investment, excluding Warehouse Purchase Program loans | 0.97% | 0.91% | 0.94% | ||||||||
Allowance for loan losses/Total loans held for investment | 0.75 | 0.70 | 0.71 | ||||||||
Allowance for loan losses/Total Loans held for investment, excluding acquired loans & Warehouse Purchase Program loans 1 | 1.00 | 0.94 | 1.00 | ||||||||
Allowance for loan losses/NPLs | 108.69 | 92.63 | 87.50 | ||||||||
1 Excludes loans acquired in 2012 from Highlands, which were initially recorded at fair value. |
The Company recorded a provision for loan losses of $2.6 million for the quarter ended December 31, 2014, compared to $2.5 million for the quarter ended September 30, 2014, and $616,000 for the quarter ended December 31, 2013. The increase in the provision for loan losses on a linked-quarter basis, as well as compared to the fourth quarter of 2013, was primarily related to increased commercial loan production, as commercial balances increased by $133.9 million compared to September 30, 2014, and by $503.8 million from December 31, 2013. Additionally, in the fourth quarter of 2014, the Company increased its qualitative reserve factors to set aside additional allowance for loan losses due to the economic uncertainty in Texas related to the recent decline in the price of oil. To date, the Company has not recognized a loss from loans in the Energy portfolio, which we believe is a reflection of prudent risk mitigation techniques. These techniques include sound underwriting (reasonable advance rates based on number and diversification of wells), sound policy (requiring hedges on production sales), and conservative collateral valuations (frequent borrowing base determinations at prices below NYMEX posted rates). All borrowing base valuations are performed by highly qualified and nationally recognized third party firms intimately familiar with the properties and their production history. At December 31, 2014, less than 1% of the Company's loan portfolio (excluding Warehouse Purchase Program loans) consisted of criticized energy loans, and all energy loans were performing.
Subsequent Events
The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2014, on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2014, and will adjust amounts preliminarily reported, if necessary.
Conference Call
The Company will host an investor conference call to review these results on Wednesday, January 28, 2015, at 8 a.m. Central Time. Participants may pre-register for the call by visiting http://dpregister.com/10057578 and will receive a unique pin number, which can be used when dialing in for the call. This will allow attendees to enter the call immediately. Alternatively, participants may call (toll-free) 1-877-513-4119 at least five minutes prior to the call to be placed into the call by an operator. International participants are asked to call 1-412-902-4148 and participants in Canada are asked to call (toll-free) 1-855-669-9657.
The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.legacytexasfinancialgroup.com. An audio replay will be available one hour after the conclusion of the call at 1-877-344-7529, Conference #10057578. This replay, as well as the webcast, will be available until February 18, 2015.
About LegacyTexas Financial Group, Inc.
LegacyTexas Financial Group, Inc. is a bank holding company based in Plano, Texas. The Company's holdings include LegacyTexas Bank, which also operates as ViewPoint Bank and First National Bank of Jacksboro. Beginning February 17, 2015, the Bank will operate under the LegacyTexas brand in each of its markets, with 48 banking offices in 19 North Texas cities, including 45 branches in the Dallas-Fort Worth Metroplex. For more information, please visit www.legacytexasfinancialgroup.com.
When used in filings by LegacyTexas Financial Group, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, including, among other things: the expected cost savings, synergies and other financial benefits from the Company-LegacyTexas Group, Inc. merger (the "Merger") 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; 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 and other factors set forth in the Company's filings with the SEC.
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.
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
ASSETS | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||
Cash and due from financial institutions | $ | 28,416 | $ | 27,669 | $ | 35,276 | $ | 33,627 | $ | 30,012 | |||||||||
Short-term interest-bearing deposits in other financial institutions | 103,605 | 62,616 | 130,632 | 88,238 | 57,962 | ||||||||||||||
Total cash and cash equivalents | 132,021 | 90,285 | 165,908 | 121,865 | 87,974 | ||||||||||||||
Securities available for sale, at fair value | 199,699 | 211,364 | 224,184 | 236,062 | 248,012 | ||||||||||||||
Securities held to maturity | 241,920 | 254,665 | 267,614 | 280,490 | 294,583 | ||||||||||||||
Total securities | 441,619 | 466,029 | 491,798 | 516,552 | 542,595 | ||||||||||||||
Loans held for investment: | |||||||||||||||||||
Loans held for investment - Warehouse Purchase Program | 786,416 | 736,624 | 769,566 | 590,904 | 673,470 | ||||||||||||||
Loans held for investment | 2,633,680 | 2,489,063 | 2,349,509 | 2,207,580 | 2,049,902 | ||||||||||||||
Gross loans | 3,420,096 | 3,225,687 | 3,119,075 | 2,798,484 | 2,723,372 | ||||||||||||||
Less: allowance for loan losses and deferred fees on loans held for investment | (28,476) | (24,773) | (22,139) | (21,291) | (20,625) | ||||||||||||||
Net loans | 3,391,620 | 3,200,914 | 3,096,936 | 2,777,193 | 2,702,747 | ||||||||||||||
FHLB and Federal Reserve Bank stock, at cost | 44,084 | 41,473 | 44,532 | 33,632 | 34,883 | ||||||||||||||
Bank-owned life insurance | 36,193 | 36,010 | 35,863 | 35,718 | 35,565 | ||||||||||||||
Premises and equipment, net | 48,743 | 51,118 | 51,955 | 52,736 | 53,272 | ||||||||||||||
Goodwill | 29,650 | 29,650 | 29,650 | 29,650 | 29,650 | ||||||||||||||
Other assets | 40,184 | 35,045 | 34,602 | 36,242 | 38,546 | ||||||||||||||
Total assets | $ | 4,164,114 | $ | 3,950,524 | $ | 3,951,244 | $ | 3,603,588 | $ | 3,525,232 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Non-interest-bearing demand | $ | 494,376 | $ | 483,784 | $ | 433,194 | $ | 434,463 | $ | 410,933 | |||||||||
Interest-bearing demand | 472,703 | 454,416 | 476,203 | 479,432 | 474,515 | ||||||||||||||
Savings and money market | 1,176,749 | 1,057,912 | 1,032,496 | 945,046 | 904,576 | ||||||||||||||
Time | 513,981 | 500,356 | 493,833 | 510,305 | 474,615 | ||||||||||||||
Total deposits | 2,657,809 | 2,496,468 | 2,435,726 | 2,369,246 | 2,264,639 | ||||||||||||||
FHLB advances | 862,907 | 799,704 | 874,866 | 607,996 | 639,096 | ||||||||||||||
Repurchase agreement and other borrowings | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||||||||
Accrued expenses and other liabilities | 50,175 | 65,225 | 58,240 | 51,247 | 52,037 | ||||||||||||||
Total liabilities | 3,595,891 | 3,386,397 | 3,393,832 | 3,053,489 | 2,980,772 | ||||||||||||||
Shareholders' equity | |||||||||||||||||||
Common stock | 400 | 400 | 400 | 399 | 399 | ||||||||||||||
Additional paid-in capital | 386,549 | 383,779 | 381,808 | 379,578 | 377,657 | ||||||||||||||
Retained earnings | 195,327 | 194,663 | 190,150 | 186,126 | 183,236 | ||||||||||||||
Accumulated other comprehensive income (loss), net | 930 | 635 | 770 | 78 | (383) | ||||||||||||||
Unearned Employee Stock Ownership Plan (ESOP) shares | (14,983) | (15,350) | (15,716) | (16,082) | (16,449) | ||||||||||||||
Total shareholders' equity | 568,223 | 564,127 | 557,412 | 550,099 | 544,460 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 4,164,114 | $ | 3,950,524 | $ | 3,951,244 | $ | 3,603,588 | $ | 3,525,232 | |||||||||
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||||||||||||||||
Consolidated Quarterly Statements of Income (unaudited) | |||||||||||||||||||||||||
For the Quarters Ended | Fourth Quarter 2014 Compared to: | ||||||||||||||||||||||||
Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Third Quarter 2014 | Fourth Quarter 2013 | |||||||||||||||||||
Interest and dividend income | (Dollars in thousands) | ||||||||||||||||||||||||
Loans, including fees | $ | 37,107 | $ | 35,872 | $ | 33,888 | $ | 30,388 | $ | 31,188 | $ | 1,235 | 3.4% | $ | 5,919 | 19.0% | |||||||||
Taxable securities | 2,109 | 2,225 | 2,453 | 2,565 | 2,583 | (116) | (5.2) | (474) | (18.4) | ||||||||||||||||
Nontaxable securities | 561 | 562 | 561 | 564 | 562 | (1) | (0.2) | (1) | (0.2) | ||||||||||||||||
Interest-bearing deposits in other financial institutions | 64 | 57 | 71 | 57 | 38 | 7 | 12.3 | 26 | 68.4 | ||||||||||||||||
FHLB and Federal Reserve Bank stock | 138 | 139 | 136 | 130 | 128 | (1) | (0.7) | 10 | 7.8 | ||||||||||||||||
39,979 | 38,855 | 37,109 | 33,704 | 34,499 | 1,124 | 2.9 | 5,480 | 15.9 | |||||||||||||||||
Interest expense | |||||||||||||||||||||||||
Deposits | 2,165 | 2,021 | 2,035 | 1,991 | 2,252 | 144 | 7.1 | (87) | (3.9) | ||||||||||||||||
FHLB advances | 1,778 | 1,957 | 1,948 | 1,927 | 1,971 | (179) | (9.1) | (193) | (9.8) | ||||||||||||||||
Repurchase agreement | 206 | 205 | 204 | 201 | 206 | 1 | 0.5 | — | — | ||||||||||||||||
Other borrowings | — | 2 | — | — | 1 | (2) | N/M 1 | (1) | N/M 1 | ||||||||||||||||
4,149 | 4,185 | 4,187 | 4,119 | 4,430 | (36) | (0.9) | (281) | (6.3) | |||||||||||||||||
Net interest income | 35,830 | 34,670 | 32,922 | 29,585 | 30,069 | 1,160 | 3.3 | 5,761 | 19.2 | ||||||||||||||||
Provision for loan losses | 2,637 | 2,511 | 1,197 | 376 | 616 | 126 | 5.0 | 2,021 | 328.1 | ||||||||||||||||
Net interest income after provision for loan losses | 33,193 | 32,159 | 31,725 | 29,209 | 29,453 | 1,034 | 3.2 | 3,740 | 12.7 | ||||||||||||||||
Non-interest income | |||||||||||||||||||||||||
Service charges and fees | 4,724 | 4,571 | 4,874 | 4,298 | 4,259 | 153 | 3.3 | 465 | 10.9 | ||||||||||||||||
Other charges and fees | 239 | 227 | 239 | 210 | 246 | 12 | 5.3 | (7) | (2.8) | ||||||||||||||||
Bank-owned life insurance income | 183 | 147 | 145 | 153 | 186 | 36 | 24.5 | (3) | (1.6) | ||||||||||||||||
Gain (loss) on sale and disposition of assets | 15 | (85) | 727 | 1 | 120 | 100 | N/M 1 | (105) | (87.5) | ||||||||||||||||
Other | 133 | 198 | (556) | 300 | 194 | (65) | (32.8) | (61) | (31.4) | ||||||||||||||||
5,294 | 5,058 | 5,429 | 4,962 | 5,005 | 236 | 4.7 | 289 | 5.8 | |||||||||||||||||
Non-interest expense | |||||||||||||||||||||||||
Salaries and employee benefits | 13,137 | 13,661 | 14,127 | 14,132 | 14,339 | (524) | (3.8) | (1,202) | (8.4) | ||||||||||||||||
Merger and acquisition costs | 8,282 | 1,188 | 652 | 169 | 663 | 7,094 | 597.1 | 7,619 | 1,149.2 | ||||||||||||||||
Advertising | 425 | 262 | 493 | 355 | 760 | 163 | 62.2 | (335) | (44.1) | ||||||||||||||||
Occupancy and equipment | 1,856 | 1,807 | 1,819 | 1,892 | 2,117 | 49 | 2.7 | (261) | (12.3) | ||||||||||||||||
Outside professional services | 711 | 569 | 486 | 525 | 824 | 142 | 25.0 | (113) | (13.7) | ||||||||||||||||
Regulatory assessments | 700 | 698 | 687 | 628 | 619 | 2 | 0.3 | 81 | 13.1 | ||||||||||||||||
Data processing | 1,753 | 1,739 | 1,708 | 1,662 | 1,747 | 14 | 0.8 | 6 | 0.3 | ||||||||||||||||
Office operations | 1,621 | 1,566 | 1,717 | 1,680 | 1,781 | 55 | 3.5 | (160) | (9.0) | ||||||||||||||||
Other | 1,311 | 1,301 | 1,661 | 1,112 | 1,278 | 10 | 0.8 | 33 | 2.6 | ||||||||||||||||
29,796 | 22,791 | 23,350 | 22,155 | 24,128 | 7,005 | 30.7 | 5,668 | 23.5 | |||||||||||||||||
Income before income tax expense | 8,691 | 14,426 | 13,804 | 12,016 | 10,330 | (5,735) | (39.8) | (1,639) | (15.9) | ||||||||||||||||
Income tax expense | 3,225 | 5,114 | 4,986 | 4,334 | 3,086 | (1,889) | (36.9) | 139 | 4.5 | ||||||||||||||||
Net income | $ | 5,466 | $ | 9,312 | $ | 8,818 | $ | 7,682 | $ | 7,244 | $ | (3,846) | (41.3)% | $ | (1,778) | (24.5)% | |||||||||
1N/M - not meaningful |
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||
Consolidated Statements of Income for the Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Interest and dividend income | (unaudited) | ||||||||||
Loans, including fees | $ | 137,255 | $ | 124,522 | $ | 120,596 | |||||
Taxable securities | 9,352 | 9,780 | 14,850 | ||||||||
Nontaxable securities | 2,248 | 2,133 | 1,891 | ||||||||
Interest-bearing deposits in other financial institutions | 249 | 126 | 117 | ||||||||
FHLB and Federal Reserve Bank stock | 543 | 528 | 538 | ||||||||
149,647 | 137,089 | 137,992 | |||||||||
Interest expense | |||||||||||
Deposits | 8,212 | 9,545 | 11,453 | ||||||||
FHLB advances | 7,610 | 8,503 | 9,807 | ||||||||
Repurchase agreement | 816 | 816 | 876 | ||||||||
Other borrowings | 2 | 5 | 33 | ||||||||
16,640 | 18,869 | 22,169 | |||||||||
Net interest income | 133,007 | 118,220 | 115,823 | ||||||||
Provision for loan losses | 6,721 | 3,199 | 3,139 | ||||||||
Net interest income after provision for loan losses | 126,286 | 115,021 | 112,684 | ||||||||
Non-interest income | |||||||||||
Service charges and fees | 18,467 | 17,778 | 19,512 | ||||||||
Other charges and fees | 915 | 937 | 579 | ||||||||
Net gain on sale of mortgage loans | — | — | 5,436 | ||||||||
Bank-owned life insurance income | 628 | 649 | 699 | ||||||||
Gain (loss) on sale of available-for-sale securities | — | (177) | 1,014 | ||||||||
Gain (loss) on sale and disposition of assets | 658 | 835 | (191) | ||||||||
Impairment of goodwill | — | — | (818) | ||||||||
Other | 75 | 1,811 | 3,325 | ||||||||
20,743 | 21,833 | 29,556 | |||||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 55,057 | 53,328 | 51,719 | ||||||||
Merger and acquisition costs | 10,291 | 663 | 4,127 | ||||||||
Advertising | 1,535 | 2,690 | 1,753 | ||||||||
Occupancy and equipment | 7,374 | 7,675 | 7,365 | ||||||||
Outside professional services | 2,291 | 2,760 | 2,320 | ||||||||
Regulatory assessments | 2,713 | 2,477 | 2,534 | ||||||||
Data processing | 6,862 | 6,727 | 6,109 | ||||||||
Office operations | 6,584 | 6,783 | 7,144 | ||||||||
Other | 5,385 | 5,774 | 4,619 | ||||||||
98,092 | 88,877 | 87,690 | |||||||||
Income before income tax expense | 48,937 | 47,977 | 54,550 | ||||||||
Income tax expense | 17,659 | 16,289 | 19,309 | ||||||||
Net income | $ | 31,278 | $ | 31,688 | $ | 35,241 | |||||
Earnings per share: | |||||||||||
Basic | $ | 0.82 | $ | 0.83 | $ | 0.98 | |||||
Diluted | $ | 0.81 | $ | 0.83 | $ | 0.98 | |||||
Dividends declared per share | $ | 0.48 | $ | 0.32 | $ | 0.40 | |||||
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||
Selected Financial Highlights (unaudited) | |||||||||||
At or For the Quarters Ended | |||||||||||
December 31, | September 30, | December 31, | |||||||||
2014 | 2014 | 2013 | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
SHARE DATA: | |||||||||||
Weighted average common shares outstanding- basic | 38,051,511 | 37,971,790 | 37,686,866 | ||||||||
Weighted average common shares outstanding- diluted | 38,275,814 | 38,203,508 | 37,911,775 | ||||||||
Shares outstanding at end of period | 40,014,851 | 40,006,941 | 39,938,816 | ||||||||
Income available to common shareholders1 | $ | 5,412 | $ | 9,215 | $ | 7,147 | |||||
Basic earnings per common share | 0.14 | 0.24 | 0.19 | ||||||||
Basic core (non-GAAP) earnings per common share2 | 0.29 | 0.26 | 0.21 | ||||||||
Diluted earnings per common share | 0.14 | 0.24 | 0.19 | ||||||||
Dividends declared per share | 0.12 | 0.12 | 0.12 | ||||||||
Total shareholders' equity | 568,223 | 564,127 | 544,460 | ||||||||
Common shareholders' equity per share (book value per share) | 14.20 | 14.10 | 13.63 | ||||||||
Tangible book value per share- Non-GAAP2 | 13.44 | 13.34 | 12.86 | ||||||||
Market value per share for the quarter: | |||||||||||
High | 27.61 | 27.52 | 27.66 | ||||||||
Low | 21.33 | 23.94 | 20.19 | ||||||||
Close | 23.85 | 23.94 | 27.45 | ||||||||
KEY RATIOS: | |||||||||||
Return on average common shareholders' equity | 3.83 | % | 6.63 | % | 5.34 | % | |||||
Core return on average common shareholders' equity2 | 7.85 | 7.14 | 5.73 | ||||||||
Return on average assets | 0.56 | 0.97 | 0.87 | ||||||||
Core return on average assets2 | 1.14 | 1.05 | 0.94 | ||||||||
Efficiency ratio3 | 52.22 | 54.17 | 67.07 | ||||||||
Estimated Tier 1 risk-based capital ratio4 | 15.14 | 16.04 | 18.17 | ||||||||
Estimated total risk-based capital ratio4 | 15.87 | 16.72 | 18.85 | ||||||||
Estimated Tier 1 leverage ratio4 | 13.86 | 14.03 | 15.67 | ||||||||
Total equity to total assets | 13.65 | 14.28 | 15.44 | ||||||||
Tangible equity to tangible assets- Non-GAAP2 | 13.01 | 13.61 | 14.70 | ||||||||
Number of employees- full-time equivalent | 517 | 512 | 561 | ||||||||
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 by dividing total non-interest expense by net interest income plus non-interest income, excluding gain (loss) on foreclosed assets, amortization of intangible assets, gains (losses) from securities transactions, merger and acquisition costs and other non-recurring items. |
4 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve. |
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||||||||||
Selected Loan Data (unaudited) | |||||||||||||||||||
At the Quarter Ended | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
Loans: | (Dollars in thousands) | ||||||||||||||||||
Commercial real estate | $ | 1,265,868 | $ | 1,219,436 | $ | 1,162,035 | $ | 1,118,059 | $ | 1,091,200 | |||||||||
Warehouse Purchase Program loans | 786,416 | 736,624 | 769,566 | 590,904 | 673,470 | ||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||
Commercial | 741,678 | 668,421 | 579,561 | 517,247 | 425,030 | ||||||||||||||
Warehouse lines of credit | 40,146 | 27,122 | 31,426 | 26,333 | 14,400 | ||||||||||||||
Total commercial and industrial loans | 781,824 | 695,543 | 610,987 | 543,580 | 439,430 | ||||||||||||||
Construction and land loans: | |||||||||||||||||||
Commercial construction and land | 14,396 | 13,206 | 28,496 | 34,465 | 27,619 | ||||||||||||||
Consumer construction and land | 6,902 | 3,694 | 3,445 | 2,604 | 2,628 | ||||||||||||||
Total construction and land loans | 21,298 | 16,900 | 31,941 | 37,069 | 30,247 | ||||||||||||||
Consumer: | |||||||||||||||||||
Consumer real estate | 524,199 | 515,706 | 501,328 | 463,857 | 441,226 | ||||||||||||||
Other consumer loans | 40,491 | 41,478 | 43,218 | 45,015 | 47,799 | ||||||||||||||
Total consumer | 564,690 | 557,184 | 544,546 | 508,872 | 489,025 | ||||||||||||||
Gross loans held for investment | $ | 3,420,096 | $ | 3,225,687 | $ | 3,119,075 | $ | 2,798,484 | $ | 2,723,372 | |||||||||
Non-performing assets: | |||||||||||||||||||
Commercial real estate | $ | 6,703 | $ | 7,452 | $ | 7,386 | $ | 8,110 | $ | 7,604 | |||||||||
Commercial and industrial | 5,778 | 6,328 | 6,245 | 5,990 | 5,141 | ||||||||||||||
Construction and land | 149 | 150 | 213 | — | — | ||||||||||||||
Consumer real estate | 10,591 | 10,106 | 9,304 | 8,203 | 8,812 | ||||||||||||||
Other consumer loans | 286 | 346 | 457 | 526 | 567 | ||||||||||||||
Total non-performing loans | 23,507 | 24,382 | 23,605 | 22,829 | 22,124 | ||||||||||||||
Foreclosed assets | 551 | 106 | 240 | 387 | 480 | ||||||||||||||
Total non-performing assets | $ | 24,058 | $ | 24,488 | $ | 23,845 | $ | 23,216 | $ | 22,604 | |||||||||
Total non-performing assets to total assets | 0.58 | % | 0.62 | % | 0.60 | % | 0.64 | % | 0.64 | % | |||||||||
Total non-performing loans to total loans held for investment, excluding Warehouse Purchase Program loans | 0.89 | % | 0.98 | % | 1.00 | % | 1.03 | % | 1.08 | % | |||||||||
Total non-performing loans to total loans held for investment | 0.69 | % | 0.76 | % | 0.76 | % | 0.82 | % | 0.81 | % | |||||||||
Allowance for loan losses to non-performing loans | 108.69 | % | 92.63 | % | 86.59 | % | 84.99 | % | 87.50 | % | |||||||||
Allowance for loan losses to total loans held for investment, excluding Warehouse Purchase Program loans | 0.97 | % | 0.91 | % | 0.87 | % | 0.88 | % | 0.94 | % | |||||||||
Allowance for loan losses to total loans held for investment | 0.75 | % | 0.70 | % | 0.66 | % | 0.69 | % | 0.71 | % | |||||||||
Allowance for loan losses to total loans held for investment, excluding acquired loans and Warehouse Purchase Program loans 1 | 1.00 | % | 0.94 | % | 0.90 | % | 0.92 | % | 1.00 | % | |||||||||
Troubled debt restructured loans ("TDRs"): | |||||||||||||||||||
Performing TDRs: | |||||||||||||||||||
Commercial real estate | $ | 702 | $ | 706 | $ | 666 | $ | — | $ | — | |||||||||
Commercial and industrial | 153 | 158 | 162 | 167 | 185 | ||||||||||||||
Construction and land | — | — | — | 2 | 2 | ||||||||||||||
Consumer real estate | 204 | 407 | 729 | 732 | 737 | ||||||||||||||
Other consumer loans | 39 | 41 | 43 | 44 | 47 | ||||||||||||||
Total performing TDRs | $ | 1,098 | $ | 1,312 | $ | 1,600 | $ | 945 | $ | 971 | |||||||||
Non-performing TDRs:2 | |||||||||||||||||||
Commercial real estate | $ | 6,569 | $ | 6,646 | $ | 6,694 | $ | 7,401 | $ | 7,446 | |||||||||
Commercial and industrial | 2,031 | 2,125 | 2,194 | 2,333 | 349 | ||||||||||||||
Construction and land | 103 | 104 | — | — | — | ||||||||||||||
Consumer real estate | 4,034 | 3,606 | 3,199 | 3,024 | 3,070 | ||||||||||||||
Other consumer loans | 245 | 300 | 411 | 471 | 503 | ||||||||||||||
Total non-performing TDRs | $ | 12,982 | $ | 12,781 | $ | 12,498 | $ | 13,229 | $ | 11,368 | |||||||||
Allowance for loan losses: | |||||||||||||||||||
Balance at beginning of period | $ | 22,585 | $ | 20,440 | $ | 19,402 | $ | 19,358 | $ | 18,869 | |||||||||
Provision expense | 2,637 | 2,511 | 1,197 | 376 | 616 | ||||||||||||||
Charge-offs | (203) | (493) | (294) | (471) | (255) | ||||||||||||||
Recoveries | 530 | 127 | 135 | 139 | 128 | ||||||||||||||
Balance at end of period | $ | 25,549 | $ | 22,585 | $ | 20,440 | $ | 19,402 | $ | 19,358 | |||||||||
Net charge-offs (recoveries): | |||||||||||||||||||
Commercial real estate | $ | (435) | $ | — | $ | — | $ | — | $ | — | |||||||||
Commercial and industrial | 77 | 152 | 53 | 192 | 43 | ||||||||||||||
Construction and land | — | 50 | — | — | — | ||||||||||||||
Consumer real estate | (1) | 69 | 54 | 77 | 14 | ||||||||||||||
Other consumer loans | 32 | 95 | 52 | 63 | 70 | ||||||||||||||
Total net charge-offs | $ | (327) | $ | 366 | $ | 159 | $ | 332 | $ | 127 | |||||||||
1 Excludes loans acquired from Highlands, which were initially recorded at fair value. | |||||||||||||||||||
2 Non-performing TDRs are included in the non-performing assets reported above. |
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||||||||||
Average Balances and Yields/Rates (unaudited) | |||||||||||||||||||
For the Quarters Ended | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
Loans: | (Dollars in thousands) | ||||||||||||||||||
Commercial real estate | $ | 1,229,962 | $ | 1,187,982 | $ | 1,169,484 | $ | 1,130,304 | $ | 1,077,112 | |||||||||
Warehouse Purchase Program loans | 619,736 | 645,148 | 571,922 | 446,935 | 542,367 | ||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||
Commercial | 703,326 | 633,208 | 561,026 | 449,867 | 376,557 | ||||||||||||||
Warehouse lines of credit | 27,303 | 29,296 | 29,327 | 17,988 | 15,316 | ||||||||||||||
Consumer real estate | 523,998 | 513,768 | 480,512 | 440,662 | 441,722 | ||||||||||||||
Other consumer loans | 41,169 | 42,308 | 44,162 | 46,453 | 49,202 | ||||||||||||||
Less: deferred fees and allowance for loan loss | (25,280) | (22,663) | (21,683) | (20,767) | (20,002) | ||||||||||||||
Loans receivable | 3,120,214 | 3,029,047 | 2,834,750 | 2,511,442 | 2,482,274 | ||||||||||||||
Securities | 505,692 | 532,950 | 545,944 | 562,607 | 592,769 | ||||||||||||||
Overnight deposits | 106,152 | 90,246 | 118,529 | 96,292 | 64,210 | ||||||||||||||
Total interest-earning assets | $ | 3,732,058 | $ | 3,652,243 | $ | 3,499,223 | $ | 3,170,341 | $ | 3,139,253 | |||||||||
Deposits: | |||||||||||||||||||
Interest-bearing demand | $ | 455,210 | $ | 460,192 | $ | 468,283 | $ | 460,745 | $ | 455,983 | |||||||||
Savings and money market | 1,169,133 | 1,060,311 | 1,000,243 | 918,636 | 902,019 | ||||||||||||||
Time | 513,786 | 492,864 | 503,035 | 493,196 | 478,244 | ||||||||||||||
FHLB advances and other borrowings | 654,396 | 733,615 | 678,817 | 464,723 | 468,855 | ||||||||||||||
Total interest-bearing liabilities | $ | 2,792,525 | $ | 2,746,982 | $ | 2,650,378 | $ | 2,337,300 | $ | 2,305,101 | |||||||||
Total assets | $ | 3,910,111 | $ | 3,837,424 | $ | 3,683,042 | $ | 3,354,668 | $ | 3,318,500 | |||||||||
Non-interest-bearing demand deposits | $ | 473,996 | $ | 456,115 | $ | 414,746 | $ | 414,919 | $ | 404,087 | |||||||||
Total deposits | $ | 2,612,125 | $ | 2,469,482 | $ | 2,386,307 | $ | 2,287,496 | $ | 2,240,333 | |||||||||
Total shareholders' equity | $ | 570,120 | $ | 562,022 | $ | 554,501 | $ | 547,201 | $ | 542,360 | |||||||||
Yields/Rates: | |||||||||||||||||||
Loans: | |||||||||||||||||||
Commercial real estate | 5.43 | % | 5.47 | % | 5.47 | % | 5.38 | % | 5.56 | % | |||||||||
Warehouse Purchase Program loans | 3.51 | % | 3.56 | % | 3.56 | % | 3.64 | % | 3.79 | % | |||||||||
Commercial and industrial loans: | |||||||||||||||||||
Commercial | 4.41 | % | 4.21 | % | 4.21 | % | 4.24 | % | 4.92 | % | |||||||||
Warehouse lines of credit | 3.59 | % | 3.55 | % | 3.64 | % | 3.60 | % | 3.51 | % | |||||||||
Consumer real estate | 4.83 | % | 4.92 | % | 4.97 | % | 4.98 | % | 5.05 | % | |||||||||
Other consumer loans | 6.23 | % | 6.03 | % | 6.07 | % | 5.95 | % | 6.07 | % | |||||||||
Loans receivable | 4.76 | % | 4.74 | % | 4.78 | % | 4.84 | % | 5.03 | % | |||||||||
Securities | 2.22 | % | 2.20 | % | 2.31 | % | 2.32 | % | 2.21 | % | |||||||||
Overnight deposits | 0.24 | % | 0.25 | % | 0.24 | % | 0.24 | % | 0.24 | % | |||||||||
Total interest-earning assets | 4.28 | % | 4.26 | % | 4.24 | % | 4.25 | % | 4.40 | % | |||||||||
Deposits: | |||||||||||||||||||
Interest-bearing demand | 0.35 | % | 0.35 | % | 0.37 | % | 0.37 | % | 0.38 | % | |||||||||
Savings and money market | 0.32 | % | 0.31 | % | 0.30 | % | 0.28 | % | 0.28 | % | |||||||||
Time | 0.64 | % | 0.65 | % | 0.69 | % | 0.75 | % | 0.99 | % | |||||||||
FHLB advances and other borrowings | 1.21 | % | 1.18 | % | 1.27 | % | 1.83 | % | 1.86 | % | |||||||||
Total interest-bearing liabilities | 0.59 | % | 0.61 | % | 0.63 | % | 0.70 | % | 0.77 | % | |||||||||
Net interest spread | 3.69 | % | 3.65 | % | 3.61 | % | 3.55 | % | 3.63 | % | |||||||||
Net interest margin | 3.84 | % | 3.80 | % | 3.76 | % | 3.73 | % | 3.83 | % | |||||||||
Cost of deposits (including non-interest-bearing demand) | 0.33 | % | 0.33 | % | 0.34 | % | 0.35 | % | 0.40 | % | |||||||||
LegacyTexas Financial Group, Inc. (formerly known as ViewPoint Financial Group, Inc.) | |||||||||||||||||||
Supplemental Information- Non-GAAP Financial Measures (unaudited and net of tax) | |||||||||||||||||||
At or For the Quarters Ended | |||||||||||||||||||
December 31, 2014 | September 30 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share: | (Dollars in thousands, except per share amounts) | ||||||||||||||||||
GAAP net income available to common shareholders 1 | $ | 5,412 | $ | 9,215 | $ | 8,721 | $ | 7,592 | $ | 7,147 | |||||||||
Distributed and undistributed earnings to participating securities 1 | 54 | 97 | 97 | 90 | 97 | ||||||||||||||
GAAP net income | 5,466 | 9,312 | 8,818 | 7,682 | 7,244 | ||||||||||||||
Merger and acquisition costs | 5,765 | 772 | 424 | 110 | 431 | ||||||||||||||
One-time payroll and severance costs | — | — | 234 | — | 137 | ||||||||||||||
One-time (gain) loss on assets | (45) | (58) | 415 | 7 | (36) | ||||||||||||||
Core (non-GAAP) net income | $ | 11,186 | $ | 10,026 | $ | 9,891 | $ | 7,799 | $ | 7,776 | |||||||||
Average shares for basic earnings per share | 38,051,511 | 37,971,790 | 37,873,671 | 37,775,677 | 37,686,866 | ||||||||||||||
GAAP basic earnings per share | $ | 0.14 | $ | 0.24 | $ | 0.23 | $ | 0.20 | $ | 0.19 | |||||||||
Core (non-GAAP) basic earnings per share | $ | 0.29 | $ | 0.26 | $ | 0.26 | $ | 0.21 | $ | 0.21 | |||||||||
Average shares for diluted earnings per share | 38,275,814 | 38,203,508 | 38,121,374 | 38,019,519 | 37,911,775 | ||||||||||||||
GAAP diluted earnings per share | $ | 0.14 | $ | 0.24 | $ | 0.23 | $ | 0.20 | $ | 0.19 | |||||||||
Core (non-GAAP) diluted earnings per share | $ | 0.29 | $ | 0.26 | $ | 0.26 | $ | 0.21 | $ | 0.21 | |||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||||||
Total shareholders' equity | $ | 568,223 | $ | 564,127 | $ | 557,412 | $ | 550,099 | $ | 544,460 | |||||||||
Less: Goodwill | (29,650) | (29,650) | (29,650) | (29,650) | (29,650) | ||||||||||||||
Identifiable intangible assets, net | (813) | (910) | (1,005) | (1,127) | (1,239) | ||||||||||||||
Total tangible shareholders' equity | $ | 537,760 | $ | 533,567 | $ | 526,757 | $ | 519,322 | $ | 513,571 | |||||||||
Shares outstanding at end of period | 40,014,851 | 40,006,941 | 39,995,720 | 39,946,560 | 39,938,816 | ||||||||||||||
Book value per share- GAAP | $ | 14.20 | $ | 14.10 | $ | 13.94 | $ | 13.77 | $ | 13.63 | |||||||||
Tangible book value per share- Non-GAAP | $ | 13.44 | $ | 13.34 | $ | 13.17 | $ | 13.00 | $ | 12.86 | |||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||||||
Total assets | $ | 4,164,114 | $ | 3,950,524 | $ | 3,951,244 | $ | 3,603,588 | $ | 3,525,232 | |||||||||
Less: Goodwill | (29,650) | (29,650) | (29,650) | (29,650) | (29,650) | ||||||||||||||
Identifiable intangible assets, net | (813) | (910) | (1,005) | (1,127) | (1,239) | ||||||||||||||
Total tangible assets | $ | 4,133,651 | $ | 3,919,964 | $ | 3,920,589 | $ | 3,572,811 | $ | 3,494,343 | |||||||||
Equity to assets- GAAP | 13.65 | % | 14.28 | % | 14.11 | % | 15.27 | % | 15.44 | % | |||||||||
Tangible equity to tangible assets- Non-GAAP | 13.01 | % | 13.61 | % | 13.44 | % | 14.54 | % | 14.70 | % | |||||||||
At or For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | ||||||||||||||
Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core) | |||||||||||||||||||
Net income | $ | 5,466 | $ | 9,312 | $ | 8,818 | $ | 7,682 | $ | 7,244 | |||||||||
Core (non-GAAP) net income | 11,186 | 10,026 | 9,891 | 7,799 | 7,776 | ||||||||||||||
Average total equity | 570,120 | 562,022 | 554,501 | 547,201 | 542,360 | ||||||||||||||
Average total assets | 3,910,111 | 3,837,424 | 3,683,042 | 3,354,668 | 3,318,500 | ||||||||||||||
Return on average common shareholders' equity | 3.83 | % | 6.63 | % | 6.36 | % | 5.62 | % | 5.34 | % | |||||||||
Core return on average common shareholders' equity | 7.85 | 7.14 | 7.14 | 5.70 | 5.73 | ||||||||||||||
Return on average assets | 0.56 | 0.97 | 0.96 | 0.92 | 0.87 | ||||||||||||||
Core return on average assets | 1.14 | 1.05 | 1.07 | 0.93 | 0.94 | ||||||||||||||
At or For the Years Ended December 31, 2014 December 31, 2013 Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share: (Dollars in thousands, except per share amounts) GAAP net income available to common shareholders 1 $ 30,942 $ 31,294 Distributed and undistributed earnings to participating securities 1 336 394 GAAP net income 31,278 31,688 Merger and acquisition costs 7,071 431 One-time payroll and severance costs 234 436 One-time (gain) loss on assets 319 (574) (Gain) loss on sale of available-for-sale securities — 115 Core (non-GAAP) net income $ 38,902 $ 32,096 Average shares for basic earnings per share 37,919,065 37,589,548 GAAP basic earnings per share $ 0.82 $ 0.83 Core (non-GAAP) basic earnings per share $ 1.03 $ 0.85 Average shares for diluted earnings per share 38,162,094 37,744,786 GAAP diluted earnings per share $ 0.81 $ 0.83 Core (non-GAAP) diluted earnings per share $ 1.02 $ 0.85
1 Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B. |
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SOURCE LegacyTexas Financial Group, Inc.
