Exhibit 99.1
National Bank Holdings Corporation Announces First Quarter 2022
Financial Results and Agreement to Acquire Rock Canyon Bank
Acquisition furthers strategic growth in the fast-growing Salt Lake City region
Denver, Colorado - (Globe Newswire) – National Bank Holdings Corporation (NYSE: NBHC) reported:
| | For the quarter | |||||||
| | 1Q22 | | 4Q21 | | 1Q21 | |||
Net income ($000's) | | $ | 18,352 | | $ | 22,769 | | $ | 26,812 |
Earnings per share - diluted | | $ | 0.60 | | $ | 0.74 | | $ | 0.86 |
Return on average tangible assets(1) | | | 1.07% | | | 1.30% | | | 1.65% |
Return on average tangible common equity(1) | | | 10.31% | | | 12.37% | | | 15.20% |
(1) | | Ratios are annualized. See non-GAAP reconciliations starting on page 13. |
| | |
Today National Bank Holdings Corporation (the “Company” or “NBHC”), the holding company for NBH Bank, announces the signing of a definitive merger agreement to acquire Community Bancorporation (“CB”), the holding company for Rock Canyon Bank, headquartered in Provo, Utah and operating in the greater Salt Lake City region. Upon completion of the exclusively negotiated transaction, NBHC will have approximately $9.6 billion in pro forma assets, including $6.0 billion in total loans, and $8.4 billion in total deposits when combined with the previously announced acquisition of Bancshares of Jackson Hole Incorporated. NBHC will also become the #1 third-party SBA loan volume originator in the state of Utah.
“Our focus on expanding NBHC’s presence in high performing U.S. markets is again demonstrated by the announcement of our intent to acquire Rock Canyon Bank,” said Tim Laney, Chairman, President and CEO of National Bank Holdings Corporation. “Rock Canyon Bank’s highly successful SBA business strategy de-risks the balance sheet, produces strong fee income, and is scalable across our franchise. Equally important, this acquisition strengthens our position as a premier regional bank serving the fast-growing Salt Lake City region. Rock Canyon Bank clients will continue to enjoy the exceptional service and local decision making they have come to expect. They will also benefit from enhanced service offerings including expanded commercial loan and treasury management solutions.”
“We are pleased to have found a partner in NBH Bank that shares our commitment to serving local businesses by providing highly personalized service that supports our clients’ and our communities’ success,” said Park Roney, President and CEO of Community Bancorporation and Chairman of Rock Canyon Bank. “NBH Bank has earned a reputation as an outstanding bank and is our partner of choice.”
Tod Monsen, CEO of Rock Canyon Bank went on to say, “NBH Bank brings us best-in-class banking solutions for our clients, and I am looking forward to working alongside their proven and high energy leadership team as we work to take our performance to the next level.”
Under the terms of the agreement, CB shareholders will receive approximately $16.1 million of cash consideration and approximately 3.1 million shares of NBHC common stock, subject to certain potential adjustments. The transaction has a value of $136.0 million in the aggregate, based on NBHC’s closing price of $38.69 on April 14, 2022.
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In announcing NBHC’s first quarter 2022 results, Tim Laney shared, “We’re off to a solid start delivering quarterly earnings of $0.60 per diluted share. Our teams delivered record first quarter loan fundings driving strong annualized core loan growth of 15.8%. We continue to deliver on our proven track record of maintaining excellent credit quality with a record low non-performing loans ratio of 0.24%. Our excess liquidity coupled with a fortress balance sheet leaves the bank well positioned to address any implications of an economic downturn, while also providing optionality to be leveraged for future growth.”
First Quarter 2022 Results
(All comparisons refer to the fourth quarter of 2021, except as noted)
Net income totaled $18.4 million, or $0.60 per diluted share, during the first quarter of 2022, compared to $22.8 million or $0.74 per diluted share during the fourth quarter of 2021. The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%.
Net Interest Income
Fully taxable equivalent net interest income totaled $48.0 million during the first quarter of 2022, a decrease of $2.8 million driven by $1.9 million lower accretion income from acquired loans, $1.4 million lower Paycheck Protection Program (“PPP”) loan fee income and a $0.9 million decrease from two fewer calendar days. These decreases were partially offset by higher loan volumes and yields as well as lower cost of funds. The fully taxable equivalent net interest margin narrowed 13 basis points to 2.90% due to lower accretion income from acquired loans and lower PPP loan fees. While the impact of the 25 basis point increase in the federal funds rate on March 16, 2022 had a nominal impact on the Company’s first quarter 2022 results, the Company’s net interest income in future periods will benefit from this rate increase. The yield on earnings assets decreased 13 basis points, and the cost of deposits improved one basis point to a record low 0.17%.
Loans
Total loans ended the quarter at $4.7 billion, an increase of $160.9 million over the prior quarter. Excluding PPP loans of $7.6 million and $21.7 million for the first and fourth quarters respectively, total loans increased $174.9 million or 15.8% annualized, led by commercial loan growth of $152.9 million or 19.7% annualized. We generated record first quarter loan fundings totaling $419.7 million, led by commercial loan fundings of $305.3 million.
Asset Quality and Provision for Loan Losses
The Company recorded $0.3 million of provision release during the quarter driven by strong asset quality. Annualized net charge-offs totaled 0.05%, compared to 0.02% in the prior quarter. Non-performing loans (comprised of non-accrual loans and non-accrual TDRs) remained a record low 0.24% of total loans, and non-performing assets decreased four basis points to 0.35% of total loans and OREO. The allowance for credit losses as a percentage of total loans totaled 1.04%, compared to 1.10% at December 31, 2021.
Deposits
Average total deposits increased $33.8 million or 2.2% annualized, to $6.2 billion for the first quarter 2022. Average transaction deposits (defined as total deposits less time deposits) increased $63.7 million or 4.9% annualized. The mix of transaction deposits to total deposits improved 78 basis points to 87.4% at March 31, 2022. The loan to deposit ratio increased 97 basis points to 73.4%.
Non-Interest Income
Non-interest income totaled $19.1 million, a decrease of $4.2 million primarily driven by $2.2 million lower unrealized gains from equity method investments included in the prior quarter and $0.7 million lower mortgage banking income. Service charges and bank card fees decreased a combined $0.5 million during the quarter due to seasonality.
Non-Interest Expense
Non-interest expense totaled $44.1 million, a decrease of $0.4 million from the prior quarter. Salaries and benefits decreased $0.7 million largely due to two fewer calendar days. Included in the first quarter 2022 were $0.3 million of gains on sale of OREO, compared to $0.7
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million in the prior quarter. The fully taxable equivalent efficiency ratio was 65.3% at March 31, 2022, compared to 59.7% at December 31, 2021.
Income tax expense totaled $3.6 million during the first quarter, compared to $5.3 million. The effective tax rate for the first quarter 2022 was 16.4%, compared to 18.6% for the full year 2021. The lower rate compared to the statutory rate reflects the continued success of our tax strategies and tax-exempt income.
Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The Tier 1 leverage ratios at March 31, 2022 for the consolidated company and NBH Bank were 10.48% and 9.09%, respectively. Shareholders’ equity totaled $820.2 million at March 31, 2022, decreasing $19.9 million primarily due to a higher accumulated other comprehensive loss.
Common book value per share decreased $0.71 to $27.33 at March 31, 2022. Tangible common book value per share decreased $0.69 to $23.64 at March 31, 2022 as this quarter’s earnings, net of dividends paid, were outpaced by the increase in accumulated other comprehensive loss. Excluding accumulated other comprehensive loss, the tangible book value per share increased $0.37 to $24.93 at March 31, 2022.
Year-Over-Year Review
(All comparisons refer to the first quarter 2021, except as noted)
Net income totaled $18.4 million, or $0.60 per diluted share, for the first quarter of 2022, compared to $26.8 million, or $0.86 per diluted share for the first quarter of 2021. The decrease was largely due to $12.7 million lower mortgage banking income, due to lower refinance activity in 2022. The return on average tangible assets was 1.07%, compared to 1.65% in the same period prior year, and the return on average tangible common equity was 10.31%, compared to 15.20%.
Fully taxable equivalent net interest income totaled $48.0 million, an increase of $1.5 million or 3.2%. Average earning assets increased $464.6 million, or 7.4%, including originated loan growth of $356.9 million. The fully taxable equivalent net interest margin narrowed 12 basis points to 2.90%, due to lower earning asset yields, which were partially offset by a decrease in the cost of funds. The yield on earning assets decreased 20 basis points driven by lower PPP loan forgiveness activity. The cost of deposits decreased 11 basis points to a record low 0.17%.
Loans outstanding totaled $4.7 billion, increasing $371.0 million or 8.6%. Excluding PPP loans of $7.6 million and $217.7 million for the first quarters 2022 and 2021 respectively, total loans increased $581.0 million or 14.2%, led by commercial loan growth of $534.6 million, or 19.4%. New loan fundings over the trailing 12 months totaled a record $1.7 billion, led by commercial loan fundings of $1.2 billion.
The Company recorded $0.3 million of provision release during the first quarter, compared to a provision release of $3.6 million in the same period last year. The provision release was driven by strong asset quality and an improved outlook in the CECL model’s underlying economic forecast. Net charge-offs totaled 0.05% of total loans, compared to 0.01% of total loans in the same period last year. Non-performing loans to total loans improved 14 basis points to 0.24% at March 31, 2022. The allowance for credit losses totaled 1.04% of total loans, compared to 1.28% at March 31, 2021.
Average total deposits increased $413.4 million or 7.2%, to $6.2 billion. Average non-interest bearing demand deposits increased $268.3 million or 12.4%, and average transaction deposits increased $559.0 million, or 11.6%. The mix of transaction deposits to total deposits increased by 319 basis points to 87.4%, and the mix of non-interest bearing demand deposits to total deposits improved 189 basis points to 40.1% at March 31, 2022.
Non-interest income totaled $19.1 million, a decrease of $14.3 million or 42.9%, driven by $12.7 million lower mortgage banking income due to lower refinance activity in 2022, as well as competition driving tighter gain on sale margins. Other non-interest income
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decreased $1.0 million due to $0.5 million lower unrealized gains on equity method investments. Included in the first quarter of 2022 was $0.7 million of banking center consolidation-related income, compared to $1.5 million in the same period last year. Service charges and bank card fees increased a combined $0.3 million compared to the first quarter 2021.
Non-interest expense totaled $44.1 million, a decrease of $5.6 million or 11.2%. Salaries and benefits decreased $4.2 million largely due to lower mortgage banking-related compensation. Occupancy and equipment decreased $0.2 million due to efficiencies gained from banking center consolidations. Problem asset workout expense decreased $0.3 million, and gain on sale of OREO increased $0.2 million.
Income tax expense totaled $3.6 million, a decrease of $2.1 million from the first quarter last year, driven by lower pre-tax income.
Acquisition of Rock Canyon Bank
Rock Canyon Bank was founded in 1991, and as of December 31, 2021 had $814.3 million in total assets, including $494.2 million in total loans, and $736.6 million in total deposits. Rock Canyon Bank is the leading third-party SBA loan originator in the state of Utah. Upon the close of the transaction, Rock Canyon Bank will operate as Hillcrest Bank. Please refer to the accompanying acquisition disclosure for additional transaction details.
BofA Securities, Inc. served as financial advisor and Squire Patton Boggs (US) LLP served as legal counsel to National Bank Holdings Corporation. Kirton McConkie served as legal counsel to Community Bancorporation.
Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Tuesday, April 19, 2022. Interested parties may listen to this call by dialing (800) 289-0720/+44 (0)330 165 4012 (United Kingdom) using the confirmation code of 2525902 and asking for the NBHC Q1 2022 Earnings Call. A telephonic replay of the call will be available beginning approximately four hours after the call’s completion through April 24, 2022, by dialing (888) 203-1112 using the confirmation code of 2525902. The earnings release and an on-line replay of the call will also be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.
About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiary, NBH Bank, National Bank Holdings Corporation operates a network of 81 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Texas, Utah and New Mexico. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; and in Texas, Utah and New Mexico, Hillcrest Bank and Hillcrest Bank Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.
For more information visit: cobnks.com, bankmw.com, hillcrestbank.com or nbhbank.com. Or, follow us on any of our social media sites:
Community Banks of Colorado: facebook.com/cobnks, twitter.com/cobnks, instagram.com/cobnks;
Bank Midwest: facebook.com/bankmw, twitter.com/bank_mw, instagram.com/bankmw;
Hillcrest Bank: facebook.com/hillcrestbank, twitter.com/hillcrest_bank;
NBH Bank: twitter.com/nbhbank;
or connect with any of our brands on LinkedIn.
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About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: ability to obtain regulatory approvals and meet other closing conditions to the mergers on the expected terms and schedule; delay in closing the mergers; difficulties and delays in integrating the NBHC, Community Bancorporation, and Bancshares of Jackson Hole Incorporated businesses or fully realizing cost savings and other benefits; business disruption following the proposed transactions; ability to execute our business strategy; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans; the Company’s ability to identify potential candidates for, consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; the Company's ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company's control environment; the Company's dependence on information technology and telecommunications systems of third-party service providers and the risk of systems failures, interruptions or breaches of security; the Company’s ability to achieve organic loan and deposit growth
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and the composition of such growth; changes in sources and uses of funds; increased competition in the financial services industry; the effect of changes in accounting policies and practices; the share price of the Company’s stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our position; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from the Company's bank subsidiary; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; a cybersecurity incident, data breach or a failure of a key information technology system; adverse effects due to the novel Coronavirus Disease 2019 (COVID-19) on the Company and its clients, counterparties, employees, and third-party service providers, and the adverse impacts on our business, financial position, results of operations, and prospects; impact of reputational risk; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Contact:
Analysts/Institutional Investors: Aldis Birkans, Chief Financial Officer, (720) 554-6640, [email protected]
Media: Jody Soper, Chief Marketing Officer, (303) 784-5925, [email protected]
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NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)
| For the three months ended | |||||||
| March 31, |
| December 31, |
| March 31, | |||
| 2022 | | 2021 | | 2021 | |||
Total interest and dividend income | $ | 49,525 | | $ | 52,501 | | $ | 49,213 |
Total interest expense |
| 2,864 | |
| 3,015 | |
| 3,992 |
Net interest income |
| 46,661 | |
| 49,486 | |
| 45,221 |
Taxable equivalent adjustment | | 1,313 | | | 1,299 | | | 1,268 |
Net interest income FTE(1) | | 47,974 | | | 50,785 | | | 46,489 |
Provision (release) expense for loan losses |
| (322) | |
| 132 | |
| (3,575) |
Net interest income after provision for loan losses FTE(1) |
| 48,296 | |
| 50,653 | |
| 50,064 |
Non-interest income: | | | | | | | | |
Service charges |
| 3,710 | |
| 3,905 | |
| 3,474 |
Bank card fees |
| 4,123 | |
| 4,476 | |
| 4,073 |
Mortgage banking income |
| 9,666 | |
| 10,387 | |
| 22,379 |
Other non-interest income |
| 847 | |
| 3,388 | |
| 1,847 |
OREO-related income |
| — | |
| — | |
| 35 |
Banking center consolidation-related income |
| 708 | |
| 1,059 | |
| 1,553 |
Total non-interest income |
| 19,054 | |
| 23,215 | |
| 33,361 |
Non-interest expense: | | | | | | | | |
Salaries and benefits |
| 29,336 | |
| 29,986 | |
| 33,523 |
Occupancy and equipment | | 6,396 | | | 6,133 | | | 6,550 |
Professional fees |
| 814 | |
| 781 | |
| 742 |
Other non-interest expense |
| 7,352 | |
| 7,764 | |
| 6,853 |
Problem asset workout |
| 163 | |
| 212 | |
| 438 |
Gain on sale of OREO, net |
| (275) | |
| (667) | |
| (29) |
Core deposit intangible asset amortization | | 296 | | | 296 | | | 296 |
Banking center consolidation-related expense | | — | | | — | | | 1,295 |
Total non-interest expense | | 44,082 | |
| 44,505 | |
| 49,668 |
| | | | | | | | |
Income before income taxes FTE(1) |
| 23,268 | |
| 29,363 | |
| 33,757 |
Taxable equivalent adjustment | | 1,313 | | | 1,299 | | | 1,268 |
Income before income taxes | | 21,955 | | | 28,064 | | | 32,489 |
Income tax expense |
| 3,603 | |
| 5,295 | |
| 5,677 |
Net income | $ | 18,352 | | $ | 22,769 | | $ | 26,812 |
Earnings per share - basic | $ | 0.61 | | $ | 0.75 | | $ | 0.87 |
Earnings per share - diluted | | 0.60 | | | 0.74 | | | 0.86 |
(1) |
| Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented. |
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NATIONAL BANK HOLDINGS CORPORATION
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)
| March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||
ASSETS | | | | | | | | |
Cash and cash equivalents | $ | 786,385 | | $ | 845,695 | | $ | 822,518 |
Investment securities available-for-sale |
| 790,384 | |
| 691,847 | |
| 666,915 |
Investment securities held-to-maturity |
| 567,055 | |
| 609,012 | |
| 520,823 |
Non-marketable securities |
| 54,568 | |
| 50,740 | |
| 15,493 |
Loans |
| 4,674,238 | |
| 4,513,383 | |
| 4,303,246 |
Allowance for credit losses |
| (48,810) | |
| (49,694) | |
| (55,057) |
Loans, net |
| 4,625,428 | |
| 4,463,689 | |
| 4,248,189 |
Loans held for sale |
| 90,152 | |
| 139,142 | |
| 228,888 |
Other real estate owned |
| 5,063 | |
| 7,005 | |
| 5,669 |
Premises and equipment, net |
| 95,133 | |
| 96,747 | |
| 101,830 |
Goodwill |
| 115,027 | |
| 115,027 | |
| 115,027 |
Intangible assets, net |
| 13,505 | |
| 12,322 | |
| 20,205 |
Other assets |
| 198,812 | |
| 182,785 | |
| 203,944 |
Total assets | $ | 7,341,512 | | $ | 7,214,011 | | $ | 6,949,501 |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
Liabilities: | | | | | | | | |
Non-interest bearing demand deposits | $ | 2,554,820 | | $ | 2,506,265 | | $ | 2,295,704 |
Interest bearing demand deposits |
| 595,137 | |
| 555,401 | |
| 557,850 |
Savings and money market |
| 2,412,081 | |
| 2,332,591 | |
| 2,199,420 |
Total transaction deposits |
| 5,562,038 | |
| 5,394,257 | |
| 5,052,974 |
Time deposits |
| 802,772 | |
| 833,916 | |
| 948,676 |
Total deposits |
| 6,364,810 | |
| 6,228,173 | |
| 6,001,650 |
Securities sold under agreements to repurchase |
| 24,744 | |
| 22,768 | |
| 19,405 |
Long-term debt |
| 39,505 | |
| 39,478 | |
| — |
Other liabilities |
| 92,238 | |
| 83,486 | |
| 96,456 |
Total liabilities |
| 6,521,297 | |
| 6,373,905 | |
| 6,117,511 |
Shareholders' equity: | | | | | | | | |
Common stock |
| 515 | |
| 515 | |
| 515 |
Additional paid in capital |
| 1,014,332 | |
| 1,014,294 | |
| 1,010,798 |
Retained earnings |
| 301,220 | |
| 289,876 | |
| 243,446 |
Treasury stock |
| (457,219) | |
| (457,616) | |
| (423,254) |
Accumulated other comprehensive (loss) income, net of tax |
| (38,633) | |
| (6,963) | |
| 485 |
Total shareholders' equity |
| 820,215 | |
| 840,106 | |
| 831,990 |
Total liabilities and shareholders' equity | $ | 7,341,512 | | $ | 7,214,011 | | $ | 6,949,501 |
SHARE DATA | | | | | | | | |
Average basic shares outstanding |
| 30,120,195 | |
| 30,338,265 | |
| 30,828,262 |
Average diluted shares outstanding |
| 30,479,261 | |
| 30,715,500 | |
| 31,143,322 |
Ending shares outstanding |
| 30,008,781 | |
| 29,958,764 | |
| 30,715,790 |
Common book value per share | $ | 27.33 | | $ | 28.04 | | $ | 27.09 |
Tangible common book value per share(1) (non-GAAP) | | 23.64 | | | 24.33 | | | 23.41 |
Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP) | | 24.93 | | | 24.56 | | | 23.40 |
CAPITAL RATIOS | | | | | | | | |
Average equity to average assets | | 11.74% | | | 11.88% | | | 12.36% |
Tangible common equity to tangible assets(1) | | 9.81% | | | 10.26% | | | 10.52% |
Tier 1 leverage ratio | | 10.48% | | | 10.39% | | | 10.80% |
Common equity tier 1 risk-based capital ratio | | 13.94% | | | 14.26% | | | 15.23% |
Tier 1 risk-based capital ratio | | 13.94% | | | 14.26% | | | 15.23% |
Total risk-based capital ratio | | 15.56% | | | 15.92% | | | 16.30% |
(1) |
| Represents a non-GAAP financial measure. See non-GAAP reconciliations starting on page 13. |
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NATIONAL BANK HOLDINGS CORPORATION
Loan Portfolio
(Dollars in thousands)
Period End Loan Balances by Type
| | | | | March 31, 2022 | | | | March 31, 2022 | |||
| | | | | vs. December 31, 2021 | | | | vs. March 31, 2021 | |||
| March 31, 2022 | | December 31, 2021 | | % Change | | March 31, 2021 | | % Change | |||
Originated: | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | |
Commercial and industrial | $ | 1,551,447 | | $ | 1,479,895 | | 4.8% | | $ | 1,395,461 | | 11.2% |
Municipal and non-profit | | 949,125 | | | 928,705 | | 2.2% | | | 850,663 | | 11.6% |
Owner-occupied commercial real estate | | 554,345 | | | 503,663 | | 10.1% | | | 476,625 | | 16.3% |
Food and agribusiness | | 205,899 | | | 200,412 | | 2.7% | | | 178,419 | | 15.4% |
Total commercial | | 3,260,816 | | | 3,112,675 | | 4.8% | | | 2,901,168 | | 12.4% |
Commercial real estate non-owner occupied | | 634,928 | | | 611,765 | | 3.8% | | | 553,184 | | 14.8% |
Residential real estate | | 626,763 | | | 616,135 | | 1.7% | | | 604,001 | | 3.8% |
Consumer | | 17,321 | | | 17,336 | | (0.1)% | | | 17,671 | | (2.0)% |
Total originated | | 4,539,828 | | | 4,357,911 | | 4.2% | | | 4,076,024 | | 11.4% |
| | | | | | | | | | | | |
Acquired: | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | |
Commercial and industrial | | 15,800 | | | 16,252 | | (2.8)% | | | 20,405 | | (22.6)% |
Municipal and non-profit | | 335 | | | 340 | | (1.5)% | | | 370 | | (9.5)% |
Owner-occupied commercial real estate | | 21,329 | | | 29,973 | | (28.8)% | | | 50,607 | | (57.9)% |
Food and agribusiness | | 2,976 | | | 3,177 | | (6.3)% | | | 4,129 | | (27.9)% |
Total commercial | | 40,440 | | | 49,742 | | (18.7)% | | | 75,511 | | (46.4)% |
Commercial real estate non-owner occupied | | 46,431 | | | 52,964 | | (12.3)% | | | 81,176 | | (42.8)% |
Residential real estate | | 47,314 | | | 52,521 | | (9.9)% | | | 70,141 | | (32.5)% |
Consumer | | 225 | | | 245 | | (8.2)% | | | 394 | | (42.9)% |
Total acquired | | 134,410 | | | 155,472 | | (13.5)% | | | 227,222 | | (40.8)% |
Total loans | $ | 4,674,238 | | $ | 4,513,383 | | 3.6% | | $ | 4,303,246 | | 8.6% |
Loan Fundings(1)
| First quarter | | Fourth quarter | | Third quarter | | Second quarter | | First quarter | |||||
| 2022 | | 2021 | | 2021 | | 2021 | | 2021 | |||||
Commercial: | | | | | | | | | | | | | | |
Commercial and industrial | $ | 169,168 | | $ | 229,529 | | $ | 196,289 | | $ | 147,030 | | $ | 144,531 |
Municipal and non-profit | | 49,906 | | | 101,450 | | | 43,516 | | | 25,131 | | | 7,999 |
Owner occupied commercial real estate |
| 67,597 | |
| 28,914 | |
| 53,445 | |
| 48,225 | |
| 27,093 |
Food and agribusiness |
| 18,620 | |
| 11,016 | |
| 8,442 | |
| 26,956 | |
| (10,104) |
Total commercial | | 305,291 | | | 370,909 | | | 301,692 | | | 247,342 | | | 169,519 |
Commercial real estate non-owner occupied |
| 63,416 | |
| 46,128 | |
| 55,392 | |
| 58,532 | |
| 49,195 |
Residential real estate |
| 49,040 | |
| 55,873 | |
| 54,442 | |
| 53,962 | |
| 74,145 |
Consumer |
| 1,904 | |
| 2,524 | |
| 1,810 | |
| 2,267 | |
| 1,353 |
Total | $ | 419,651 | | $ | 475,434 | | $ | 413,336 | | $ | 362,103 | | $ | 294,212 |
(1) |
| Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were $66,430, $138,777, $29,154, $59,520 and ($26,395) as of the first quarter of 2022 and the fourth, third, second and first quarter of 2021, respectively. |
9
NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | | For the three months ended | | For the three months ended | |||||||||||||||||||||
| | March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||||||||||||||||||||
| | Average |
|
| | | Average |
| Average |
|
| | | Average |
| Average |
|
| | | Average | ||||||
| | balance | | Interest | | rate | | balance | | Interest | | rate | | balance | | Interest | | rate | |||||||||
Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Originated loans FTE(1)(2) | | $ | 4,361,919 | | $ | 42,085 | | | 3.91% | | $ | 4,296,318 | | $ | 43,066 | | | 3.98% | | $ | 4,004,994 | | $ | 39,560 | | | 4.01% |
Acquired loans | |
| 147,638 | |
| 2,568 | | | 7.05% | |
| 172,567 | |
| 4,493 | | | 10.33% | |
| 238,468 | | | 5,128 | | | 8.72% |
Loans held for sale | | | 93,639 | | | 756 | | | 3.27% | | | 166,470 | | | 1,214 | | | 2.89% | | | 231,521 | | | 1,517 | | | 2.66% |
Investment securities available-for-sale | |
| 751,646 | |
| 2,849 | | | 1.52% | |
| 689,994 | |
| 2,560 | | | 1.48% | |
| 686,731 | | | 2,485 | | | 1.45% |
Investment securities held-to-maturity | |
| 589,830 | |
| 2,012 | | | 1.36% | |
| 637,250 | |
| 1,994 | | | 1.25% | |
| 421,119 | | | 1,416 | | | 1.34% |
Other securities | |
| 14,590 | |
| 209 | | | 5.73% | |
| 14,590 | |
| 209 | | | 5.73% | |
| 15,818 | | | 210 | | | 5.31% |
Interest earning deposits and securities purchased under agreements to resell | |
| 743,239 | |
| 359 | | | 0.20% | |
| 678,729 | |
| 264 | | | 0.15% | |
| 639,273 | | | 165 | | | 0.10% |
Total interest earning assets FTE(2) | | $ | 6,702,501 | | $ | 50,838 | | | 3.08% | | $ | 6,655,918 | | $ | 53,800 | | | 3.21% | | $ | 6,237,924 | | $ | 50,481 | | | 3.28% |
Cash and due from banks | | $ | 79,383 | | | | | | | | $ | 79,058 | | | | | | | | $ | 81,253 | | | | | | |
Other assets | |
| 442,098 | | | | | | | |
| 460,664 | | | | | | | |
| 495,222 | | | | | | |
Allowance for credit losses | |
| (49,584) | | | | | | | |
| (49,069) | | | | | | | |
| (58,915) | | | | | | |
Total assets | | $ | 7,174,398 | | | | | | | | $ | 7,146,571 | | | | | | | | $ | 6,755,484 | | | | | | |
Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing demand, savings and money market deposits | | $ | 2,936,158 | | $ | 1,437 | | | 0.20% | | $ | 2,847,562 | | $ | 1,500 | | | 0.21% | | $ | 2,645,487 | | $ | 1,652 | | | 0.25% |
Time deposits | |
| 821,814 | |
| 1,094 | | | 0.54% | |
| 851,779 | |
| 1,312 | | | 0.61% | |
| 967,447 | | | 2,335 | | | 0.98% |
Securities sold under agreements to repurchase | |
| 22,770 | |
| 7 | | | 0.12% | |
| 20,420 | |
| 7 | | | 0.14% | |
| 21,377 | | | 5 | | | 0.09% |
Long-term debt | | | 39,489 | | | 326 | | | 3.35% | | | 24,599 | |
| 196 | | | 3.16% | | | — | | | — | | | 0.00% |
Total interest bearing liabilities | | $ | 3,820,231 | | $ | 2,864 | | | 0.30% | | $ | 3,744,360 | | $ | 3,015 | | | 0.32% | | $ | 3,634,311 | | $ | 3,992 | | | 0.45% |
Demand deposits | | $ | 2,434,198 | | | | | | | | $ | 2,459,063 | | | | | | | | $ | 2,165,868 | | | | | | |
Other liabilities | |
| 78,027 | | | | | | | |
| 94,345 | | | | | | | |
| 120,607 | | | | | | |
Total liabilities | |
| 6,332,456 | | | | | | | |
| 6,297,768 | | | | | | | |
| 5,920,786 | | | | | | |
Shareholders' equity | |
| 841,942 | | | | | | | |
| 848,803 | | | | | | | |
| 834,698 | | | | | | |
Total liabilities and shareholders' equity | | $ | 7,174,398 | | | | | | | | $ | 7,146,571 | | | | | | | | $ | 6,755,484 | | | | | | |
Net interest income FTE(2) | | | | | $ | 47,974 | | | | | | | | $ | 50,785 | | | | | | | | $ | 46,489 | | | |
Interest rate spread FTE(2) | | | | | | | | | 2.78% | | | | | | | | | 2.89% | | | | | | | | | 2.83% |
Net interest earning assets | | $ | 2,882,270 | | | | | | | | $ | 2,911,558 | | | | | | | | $ | 2,603,613 | | | | | | |
Net interest margin FTE(2) | | | | | | | | | 2.90% | | | | | | | | | 3.03% | | | | | | | | | 3.02% |
Average transaction deposits | | $ | 5,370,356 | | | | | | | | $ | 5,306,625 | | | | | | | | $ | 4,811,355 | | | | | | |
Average total deposits | | | 6,192,170 | | | | | | | | | 6,158,404 | | | | | | | | | 5,778,802 | | | | | | |
Ratio of average interest earning assets to average interest bearing liabilities | | | 175.45% | | | | | | | | | 177.76% | | | | | | | | | 171.64% | | | | | | |
(1) |
| Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. |
(2) |
| Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,313, $1,299 and $1,268 for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively. |
10
NATIONAL BANK HOLDINGS CORPORATION
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)
Allowance for Credit Losses Analysis
| As of and for the three months ended | |||||||
| March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||
Beginning allowance for credit losses | $ | 49,694 | | $ | 49,155 | | $ | 59,777 |
Charge-offs |
| (634) | |
| (268) | | | (302) |
Recoveries | | 75 | | | 72 | | | 182 |
Provision (release) expense |
| (325) | |
| 735 | |
| (4,600) |
Ending allowance for credit losses ("ACL") | $ | 48,810 | | $ | 49,694 | | $ | 55,057 |
Ratio of annualized net charge-offs to average total loans during the period | | 0.05% | | | 0.02% | | | 0.01% |
Ratio of ACL to total loans outstanding at period end | | 1.04% | | | 1.10% | | | 1.28% |
Ratio of ACL to total non-performing loans at period end | | 440.01% | | | 458.77% | | | 336.25% |
Total loans | $ | 4,674,238 | | $ | 4,513,383 | | $ | 4,303,246 |
Average total loans during the period | | 4,520,205 | | | 4,490,391 | | | 4,277,481 |
Total non-performing loans | | 11,093 | | | 10,832 | | | 16,374 |
Past Due and Non-accrual Loans
| March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||
Loans 30-89 days past due and still accruing interest | $ | 3,034 | | $ | 1,687 | | $ | 1,867 |
Loans 90 days past due and still accruing interest |
| 389 | |
| 420 | |
| 1,021 |
Non-accrual loans |
| 11,093 | |
| 10,832 | |
| 16,374 |
Total past due and non-accrual loans | $ | 14,516 | | $ | 12,939 | | $ | 19,262 |
Total 90 days past due and still accruing interest and non-accrual loans to total loans | | 0.25% | | | 0.25% | | | 0.40% |
| March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||
Non-performing loans | $ | 11,093 | | $ | 10,832 | | $ | 16,374 |
OREO |
| 5,063 | |
| 7,005 | |
| 5,669 |
Other repossessed assets |
| — | |
| — | |
| 17 |
Total non-performing assets | $ | 16,156 | | $ | 17,837 | | $ | 22,060 |
Accruing restructured loans | $ | 4,979 | | $ | 7,186 | | $ | 13,822 |
Total non-performing loans to total loans | | 0.24% | | | 0.24% | | | 0.38% |
Total non-performing assets to total loans and OREO | | 0.35% | | | 0.39% | | | 0.51% |
11
NATIONAL BANK HOLDINGS CORPORATION
Key Ratios(1)
| As of and for the three months ended | ||||
| March 31, |
| December 31, |
| March 31, |
| 2022 |
| 2021 |
| 2021 |
Return on average assets | 1.04% | | 1.26% | | 1.61% |
Return on average tangible assets(2) | 1.07% | | 1.30% | | 1.65% |
Return on average equity | 8.84% | | 10.64% | | 13.03% |
Return on average tangible common equity(2) | 10.31% | | 12.37% | | 15.20% |
Loan to deposit ratio (end of period) | 73.44% | | 72.47% | | 71.70% |
Non-interest bearing deposits to total deposits (end of period) | 40.14% | | 40.24% | | 38.25% |
Net interest margin(3) | 2.82% | | 2.95% | | 2.94% |
Net interest margin FTE(2)(3) | 2.90% | | 3.03% | | 3.02% |
Interest rate spread FTE(2)(4) | 2.78% | | 2.89% | | 2.83% |
Yield on earning assets(5) | 3.00% | | 3.13% | | 3.20% |
Yield on earning assets FTE(2)(5) | 3.08% | | 3.21% | | 3.28% |
Cost of interest bearing liabilities(5) | 0.30% | | 0.32% | | 0.45% |
Cost of deposits | 0.17% | | 0.18% | | 0.28% |
Non-interest income to total revenue FTE(2) | 28.43% | | 31.37% | | 41.78% |
Non-interest expense to average assets | 2.49% | | 2.47% | | 2.98% |
Efficiency ratio | 66.63% | | 60.81% | | 62.83% |
Efficiency ratio FTE(2) | 65.32% | | 59.74% | | 61.83% |
| | | | | |
Total Loans Asset Quality Data(6)(7)(8) | | | | | |
Non-performing loans to total loans | 0.24% | | 0.24% | | 0.38% |
Non-performing assets to total loans and OREO | 0.35% | | 0.39% | | 0.51% |
Allowance for credit losses to total loans | 1.04% | | 1.10% | | 1.28% |
Allowance for credit losses to non-performing loans | 440.01% | | 458.77% | | 336.25% |
Net charge-offs to average loans(1) | 0.05% | | 0.02% | | 0.01% |
(1) |
| Ratios are annualized. |
(2) |
| Ratio represents non-GAAP financial measure. See non-GAAP reconciliations starting on page 13. |
(3) | | Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets. |
(4) |
| Interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities. |
(5) | | Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets. |
(6) | | Non-performing loans consist of non-accruing loans and restructured loans on non-accrual. |
(7) | | Non-performing assets include non-performing loans and other real estate owned. |
(8) | | Total loans are net of unearned discounts and fees. |
12
NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)
Tangible Common Book Value Ratios
| | March 31, 2022 | | December 31, 2021 | | March 31, 2021 | |||
Total shareholders' equity | | $ | 820,215 | | $ | 840,106 | | $ | 831,990 |
Less: goodwill and core deposit intangible assets, net | |
| (121,096) | |
| (121,392) | |
| (122,280) |
Add: deferred tax liability related to goodwill | |
| 10,298 | |
| 10,070 | |
| 9,384 |
Tangible common equity (non-GAAP) | | $ | 709,417 | | $ | 728,784 | | $ | 719,094 |
| | | | | | | | | |
Total assets | | $ | 7,341,512 | | $ | 7,214,011 | | $ | 6,949,501 |
Less: goodwill and core deposit intangible assets, net | |
| (121,096) | |
| (121,392) | |
| (122,280) |
Add: deferred tax liability related to goodwill | |
| 10,298 | |
| 10,070 | |
| 9,384 |
Tangible assets (non-GAAP) | | $ | 7,230,714 | | $ | 7,102,689 | | $ | 6,836,605 |
| | | | | | | | | |
Tangible common equity to tangible assets calculations: | | | | | | | | | |
Total shareholders' equity to total assets | | | 11.17% | | | 11.65% | | | 11.97% |
Less: impact of goodwill and core deposit intangible assets, net | | | (1.36)% | | | (1.39)% | | | (1.45)% |
Tangible common equity to tangible assets (non-GAAP) | | | 9.81% | | | 10.26% | | | 10.52% |
| | | | | | | | | |
Tangible common book value per share calculations: | | | | | | | | | |
Tangible common equity (non-GAAP) | | $ | 709,417 | | $ | 728,784 | | $ | 719,094 |
Divided by: ending shares outstanding | |
| 30,008,781 | |
| 29,958,764 | |
| 30,715,790 |
Tangible common book value per share (non-GAAP) | | $ | 23.64 | | $ | 24.33 | | $ | 23.41 |
| | | | | | | | | |
Tangible common book value per share, excluding accumulated other comprehensive income calculations: | | | | | | | | | |
Tangible common equity (non-GAAP) | | $ | 709,417 | | $ | 728,784 | | $ | 719,094 |
Accumulated other comprehensive loss (income), net of tax | |
| 38,633 | |
| 6,963 | |
| (485) |
Tangible common book value, excluding accumulated other comprehensive loss (income), net of tax (non-GAAP) | |
| 748,050 | |
| 735,747 | |
| 718,609 |
Divided by: ending shares outstanding | |
| 30,008,781 | |
| 29,958,764 | |
| 30,715,790 |
Tangible common book value per share, excluding accumulated other comprehensive loss (income), net of tax (non-GAAP) | | $ | 24.93 | | $ | 24.56 | | $ | 23.40 |
13
NATIONAL BANK HOLDINGS CORPORATION
(Dollars in thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average Tangible Equity
| | As of and for the three months ended | |||||||
| | March 31, |
| December 31, |
| March 31, | |||
| | 2022 |
| 2021 |
| 2021 | |||
Net income | | $ | 18,352 | | $ | 22,769 | | $ | 26,812 |
Add: impact of core deposit intangible amortization expense, after tax | |
| 227 | |
| 227 | |
| 228 |
Net income adjusted for impact of core deposit intangible amortization expense, after tax | | $ | 18,579 | | $ | 22,996 | | $ | 27,040 |
| | | | | | | | | |
Average assets | | $ | 7,174,398 | | $ | 7,146,571 | | $ | 6,755,484 |
Less: average goodwill and core deposit intangible asset, net of deferred tax liability related to goodwill | |
| (110,973) | |
| (111,508) | |
| (113,074) |
Average tangible assets (non-GAAP) | | $ | 7,063,425 | | $ | 7,035,063 | | $ | 6,642,410 |
| | | | | | | | | |
Average shareholders' equity | | $ | 841,942 | | $ | 848,803 | | $ | 834,698 |
Less: average goodwill and core deposit intangible asset, net of deferred tax liability related to goodwill | |
| (110,973) | |
| (111,508) | |
| (113,074) |
Average tangible common equity (non-GAAP) | | $ | 730,969 | | $ | 737,295 | | $ | 721,624 |
| | | | | | | | | |
Return on average assets | | | 1.04% | | | 1.26% | | | 1.61% |
Return on average tangible assets (non-GAAP) | | | 1.07% | | | 1.30% | | | 1.65% |
Return on average equity | | | 8.84% | | | 10.64% | | | 13.03% |
Return on average tangible common equity (non-GAAP) | | | 10.31% | | | 12.37% | | | 15.20% |
Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin
| | As of and for the three months ended | |||||||
| | March 31, | | December 31, | | March 31, | |||
| | 2022 | | 2021 | | 2021 | |||
Interest income | | $ | 49,525 |
| $ | 52,501 |
| $ | 49,213 |
Add: impact of taxable equivalent adjustment | |
| 1,313 | |
| 1,299 | |
| 1,268 |
Interest income FTE (non-GAAP) | | $ | 50,838 | | $ | 53,800 | | $ | 50,481 |
| | | | | | | | | |
Net interest income | | $ | 46,661 | | $ | 49,486 | | $ | 45,221 |
Add: impact of taxable equivalent adjustment | |
| 1,313 | |
| 1,299 | |
| 1,268 |
Net interest income FTE (non-GAAP) | | $ | 47,974 | | $ | 50,785 | | $ | 46,489 |
| | | | | | | | | |
Average earning assets | | $ | 6,702,501 | | $ | 6,655,918 | | $ | 6,237,924 |
Yield on earning assets | |
| 3.00% | |
| 3.13% | |
| 3.20% |
Yield on earning assets FTE (non-GAAP) | |
| 3.08% | |
| 3.21% | |
| 3.28% |
Net interest margin | |
| 2.82% | |
| 2.95% | |
| 2.94% |
Net interest margin FTE (non-GAAP) | |
| 2.90% | |
| 3.03% | |
| 3.02% |
Efficiency Ratio
| | As of and for the three months ended | |||||||
|
| March 31, |
| December 31, |
| March 31, | |||
|
| 2022 |
| 2021 |
| 2021 | |||
Net interest income | | $ | 46,661 | | $ | 49,486 | | $ | 45,221 |
Add: impact of taxable equivalent adjustment | |
| 1,313 | |
| 1,299 | |
| 1,268 |
Net interest income, FTE (non-GAAP) | | $ | 47,974 | | $ | 50,785 | | $ | 46,489 |
| | | | | | | | | |
Non-interest income | | $ | 19,054 | | $ | 23,215 | | $ | 33,361 |
| | | | | | | | | |
Non-interest expense | | $ | 44,082 | | $ | 44,505 | | $ | 49,668 |
Less: core deposit intangible asset amortization | | | (296) | |
| (296) | |
| (296) |
Non-interest expense, adjusted for core deposit intangible asset amortization | | $ | 43,786 | | $ | 44,209 | | $ | 49,372 |
| | | | | | | | | |
Efficiency ratio | | | 66.63% | | | 60.81% | | | 62.83% |
Efficiency ratio FTE (non-GAAP) | | | 65.32% | | | 59.74% | | | 61.83% |
14
