AMERICAN FORK, Utah--(BUSINESS WIRE)--People’s Utah Bancorp (the “Company”) (Nasdaq: PUB) today announced results for the year-end and quarter ended December 31, 2015.
Consolidated net income for the year ended December 31, 2015 was $19.6 million compared to $14.9 million for 2014, an increase of 31.6%. Diluted earnings per share was $1.17 for the year ended December 31, 2015 compared to $0.98 for the prior year, an increase of 19.4%. Diluted earnings per share for 2015 includes the partial year impact of the increased shares issued in the June 2015 initial public offering.
Consolidated net income for the fourth quarter of 2015 was $4.9 million compared to $5.3 million for the third quarter of 2015, a decrease of 7.2%, and $4.1 million for the fourth quarter of 2014, an increase of 20.1%. Diluted earnings per share was $0.27 for the fourth quarter of 2015 compared to $0.29 for the third quarter of 2015 and $0.26 per diluted share in the fourth quarter of 2014.
“We are quite pleased with our operating results for the year as our net income of over $19 million is the highest in the Company’s history. Our current year diluted earnings per share, return on average equity and return on average assets also increased over the prior year, even after absorbing the impact of the additional shares issued and equity raised from our initial public offering. We are also pleased with our overall loan growth of over 11% during the year and for 2016 we expect high single-digit loan growth.” said Richard Beard, President and Chief Executive Officer of People’s Utah Bancorp.
Highlights
- Net income of $19.6 million in 2015 – highest in the Company’s history.
- Declared a 16.7% increase in the quarterly dividend to $0.07 per share.
- Net interest margin increased to 4.43% for 2015 compared to 4.39% in 2014.
- Return on average equity increased to 10.49% in 2015 compared to 9.76% for 2014.
- Return on average assets increased to 1.34% in 2015 compared to 1.12% for 2014.
- Efficiency ratio improved to 60.23% in 2015 from 63.58% in 2014.
- Loans held for investment at year-end grew 11.4% year over year.
- Deposits at year-end grew 9.2% year over year.
Earnings Summary
Net income for the year ended December 31, 2015 of $19.6 million was impacted by the following factors: (a) higher net interest income of approximately $6.7 million, (b) lower loan loss provision of $0.7 million, (c) higher non-interest income of $0.8 million, and (d) offset by higher salaries and wages of $2.3 million and income taxes of $2.0 million. Diluted earnings per share increased year over year by 19.4% from $0.98 to $1.17 per share, and was impacted by the additional 2.66 million shares issued as part of the initial public offering in June 2015.
Net income for the fourth quarter of 2015 of $4.9 million compared to $5.3 million in the third quarter of 2015 was impacted by the following factors: (a) higher net interest income of $0.7 million, (b) a decline in noninterest income of $0.2 million, (c) higher salaries and wages of $0.7 million and other expenses of $0.5 million and (d) a decrease in income taxes of $0.4 million. These factors contributed to diluted earnings per share declining to $0.27 per share compared to $0.29 per share in the third quarter of 2015.
Return on average assets for the year 2015 was 1.34% compared to 1.12% in the prior year. Return on average equity for 2015 was 10.49% compared to 9.76% in 2014. Return on average assets for the fourth quarter of 2015 was 1.24% compared to 1.40% in the third quarter of 2015. Return on average equity for fourth quarter of 2015 was 9.27% compared to 10.21% in the third quarter of 2015.
Net Interest Income and Margin
Net interest income for the year ended December 31, 2015 increased $6.7 million over 2014 primarily due to an increase of 11.4% in loans held for investment and a higher net interest margin of 4.43% compared to 4.39% in 2014. Average balances for loans increased from $861.8 million in 2014 to $983.3 million during 2015. Net interest margin remained relatively stable above 4.4% during the year, even after the short-term investing of the net proceeds of $34.9 million from the Company’s initial public offering.
Net interest income for the fourth quarter of 2015 increased $0.7 million compared to the third quarter of 2015, primarily due to an increase in average loan balances from $991.2 million to $1.02 billion with net interest margin of 4.43% in the fourth quarter and third quarter of 2015.
With the recent increase in short-term interest rates, we expect that earning asset yields and cost of funds on deposits will likely increase during 2016. Our interest rate risk models project our net interest margin will increase in a rising rate environment. The assumptions on earning asset yields and cost of funds on deposits are based on historical patterns in previous rising rate environments. However, since earning asset yields and cost of funds on deposits have been low for an extended period of time, we can give no assurance that the underlying assumptions in the interest rate risk models will behave in the same manner in the future and could impact net interest margins in future periods.
Provision for Loan Losses
The provision for loan losses for 2015 declined $0.7 million to $1.0 million compared to 2014 primarily due to an improvement in credit quality of the underlying loan portfolio and lower net charge-offs. Total net charge-offs for 2015 declined to $0.6 million compared to $0.9 million in 2014.
Non-interest Income
Non-interest income for the year 2015 increased by 5% to $16.0 million from $15.2 million in 2014 primarily due to an increase of $0.9 million in mortgage banking income partially offset by a decrease in service charge income. The Company has experienced higher mortgage banking income and residential mortgage loan volumes compared to the same period in 2014; however, this growth may not continue in future periods because the mortgage banking business has historically been a cyclical business.
Non-interest income for the fourth quarter of 2015 declined $0.2 million compared to the third quarter of 2015 largely due to lower mortgage banking income and by a decline in service charge income.
Non-interest Expense
Non-interest expenses for 2015 increased by $1.4 million or 3.2% over 2014 primarily from increases to salaries and benefits of $2.3 million during the year and offset by a decrease of $0.7 million of merger-related expenses compared to 2014. No merger-related expenses were incurred in 2015. The year-over-year increase in salaries and benefits is primarily due to new hires, salary increases, variable compensation costs during the year to support our balance sheet and income growth, and expansion of our leasing division.
Non-interest expenses for the fourth quarter of 2015 compared to the third quarter of 2015 increased $1.2 million consisting of $0.7 million in salaries and benefits and $0.5 million in other expenses. The increase to salaries and benefits was related to commissions, retirement plan contributions and related payroll taxes resulting from achieving the highest net income in the Company’s history. The increase in other expenses was largely from expenses related to being a public company, higher loan production expenses and costs associated with the merging of the bank charters in September 2015. Approximately $0.2 million of the fourth quarter expense increases resulted from one-time costs and $0.4 million from other fourth-quarter adjustments, totaling $0.6 million pretax or $0.4 million after-tax.
Our efficiency ratio for the year 2015 was 60.23% an improvement over 63.58% in 2014. The additional expenses discussed above impacted our efficiency ratio for the fourth quarter of 2015 which was 62.48%. While we continue to focus on improving our efficiency ratio, the ratio could be impacted by investments in new branches which we hope to open in 2016, and the expansion of the leasing division. Historically since 2012 our leasing division has purchased lease paper from other originators. We are expanding our leasing division to begin originating leases. We plan to hire additional staff and incur expenses to accommodate the expansion. We anticipate modest growth in 2016 from our current portfolio.
Income Tax Provision
The effective tax rate for the year and quarter ended December 31, 2015 was 34.3% and 33.8%, respectively, compared to 35.6% for the year 2014 and 35.1% in the third quarter of 2015. The tax rate decreased in 2015 compared to the prior year due primarily to an increase in the portion of nontaxable income to taxable income and certain tax credits.
Loans and Credit Quality
Loans held for investment increased $107.5 million or 11.4% during 2015 over the prior year. Although loans were relatively flat between the second and third quarters of 2015, loans increased during the fourth quarter of 2015 to $1.05 billion from $993.5 million at September 30, 2015. Average loans for the year 2015 increased from $861.8 million in 2014 to $983.3 million. Average loans for the fourth quarter 2015 were $1.02 billion compared to $991.2 million for the third quarter of 2015.
Non-performing loans declined to $7.4 million as of year-end 2015 compared to $9.4 million as of the third quarter of 2015 and $7.9 million as of December 31, 2014. At December 31, 2015, the ratio of non-performing assets to total assets was 0.51% compared to 0.64% at the end of the third quarter of 2015 and 0.70% as of December 31, 2014. The allowance for loan losses to loans was 1.45% as of December 31, 2015, 1.54% at September 30, 2015 and 1.58% at December 31, 2014.
Early stage delinquencies (accruing past-due loans, 30 to 89 days) increased as of year-end 2015 to $15.7 million compared to $5.1 million as of September 30, 2015 and $9.8 million at December 31, 2014. The majority of these early stage delinquencies are related to matured loans that were in the process of being renewed.
Investment Securities
Investment securities at year-end 2015 increased 10.6% to $398.6 million compared to $360.4 million at the end of the third quarter of 2015 and increased 20.5% compared to $330.8 million as of the end of 2014, reflecting the investment of net proceeds received from the Company’s initial public offering. Available-for-sale securities totaled $332.7 million and held to maturity securities had an amortized cost of $65.9 million at December 31, 2015.
Liabilities
Total deposits at year-end 2015 were $1.31 billion compared to $1.33 billion at September 30, 2015 and $1.20 billion as of year-end 2014. Increases from 2014 were primarily due to growth of the client base and new customers. Non-interest-bearing deposits were 31% of total deposits as of December 31, 2015 compared to 32% as of the third quarter 2015 and 27% as of year-end 2014. Short-term borrowings increased to $27.2 million at December 31, 2015.
Shareholders’ Equity
Shareholders’ equity increased to $209.4 million as of year-end 2015 compared to $206.6 million as of September 30, 2015 and $157.7 million as of year-end 2014. The increase resulted primarily from (i) the successful initial public offering of 2.66 million common shares in June 2015, which provided net proceeds after offering expenses of $34.9 million, and (ii) net income during the intervening period net of cash dividends paid to shareholders.
Dividend
As previously announced on January 21, 2016, the Board of Directors declared a 16.7% increase to our quarterly cash dividend to $0.07 per share. The dividend will be payable to shareholders of record on February 1, 2016 and paid on February 12, 2016. The dividend payout ratio for earnings for the year ended December 31, 2015 was 21.5%.
Conference Call and Webcast
Management will conduct a live conference call and webcast for investors, analysts and the public relating to the Company's results for the year ended and fourth quarter of 2015 at 11:00 a.m. Eastern Time on Wednesday, January 27, 2016. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 888-317-6003 (international calls 412-317-6061) and the conference ID is 3280274.
To participate on the webcast, log on to: http://services.choruscall.com/links/pub160127.html.
If you are unable to participate during the live webcast, the call will be archived on the Company’s website, www.peoplesutah.com, or at the same URL above until February 26, 2015.
Forward-Looking Statements
Statements in this release that are based on information other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date.
Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include: (i) market and economic conditions; (ii) capital sufficiency; (iii) operational, liquidity, interest rate and credit risks; (iv) deterioration of asset quality; (v) achieving loan and deposit growth; (vi) increased competition; (vii) adequacy of reserves; (viii) investments in new branches and new business opportunities; and (ix) changes in the regulatory or legal environment; as well as other factors discussed in the section titled “Risk Factors,” in the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission in June 2015.
The foregoing factors should not be construed as exhaustive. The Company does not intend, or undertake any obligation to publicly update these forward-looking statements.
About People’s Utah Bancorp
People’s Utah Bancorp is the holding company for People’s Intermountain Bank with 18 locations in two divisions, Bank of American Fork and Lewiston State Bank. The bank has been serving communities in Utah and southern Idaho for more than 100 years. PUB is committed to preserving the community bank model with a full range of bank products and technologies. More information about PUB is available at www.peoplesutah.com.
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PEOPLE’S UTAH BANCORP |
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| As of or Year-to-Date | ||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||
| (Dollars in thousands, except share data) | 2015 | 2015 | 2014 | |||||||||||
| Financial Condition Data: | ||||||||||||||
| Average loans | $ | 983,294 | $ | 972,541 | $ | 861,785 | ||||||||
| Average earning assets | 1,391,108 | 1,363,339 | 1,250,156 | |||||||||||
| Average total assets | 1,468,942 | 1,437,722 | 1,331,291 | |||||||||||
| Average shareholders’ equity | 186,889 | 179,382 | 152,788 | |||||||||||
| Selected Balance Sheet Financial Ratios: | ||||||||||||||
| Book value per share | $ | 11.92 | $ | 11.81 | $ | 10.68 | ||||||||
| Tangible book value per share | $ | 11.88 | $ | 11.77 | $ | 10.63 | ||||||||
| Non-performing assets to total assets | 0.51 | % | 0.64 | % | 0.70 | % | ||||||||
| Allowance for loan losses to gross loans | 1.45 | % | 1.54 | % | 1.58 | % | ||||||||
| Loans to Deposits | 80.23 | % | 74.11 | % | 78.18 | % | ||||||||
| Asset Quality Data: | ||||||||||||||
| Non-performing loans | $ | 7,418 | $ | 9,383 | $ | 7,864 | ||||||||
| Non-performing assets | 7,986 | 10,002 | 9,537 | |||||||||||
| Net charge-offs | 594 | 424 | 939 | |||||||||||
| Capital Ratios: | ||||||||||||||
| Tier 1 leverage capital (1) | 13.38 | % | 13.71 | % | 11.32 | % | ||||||||
| Total risk–based capital (1) | 18.96 | % | 19.56 | % | 16.01 | % | ||||||||
| Average equity to average assets | 12.72 | % | 12.48 | % | 11.48 | % | ||||||||
| Tangible common equity to tangible assets (4) | 13.42 | % | 13.26 | % | 11.48 | % | ||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.30 | $ | 0.28 | $ | 1.21 | $ | 1.02 | ||||||||||||
| Diluted earnings per share | $ | 0.27 | $ | 0.29 | $ | 0.26 | $ | 1.17 | $ | 0.98 | ||||||||||||
| Net interest margin (2) | 4.43 | % | 4.43 | % | 4.45 | % | 4.43 | % | 4.39 | % | ||||||||||||
| Efficiency ratio (3) | 62.48 | % | 57.93 | % | 62.35 | % | 60.23 | % | 63.58 | % | ||||||||||||
| Non-interest income to average assets | 0.95 | % | 1.05 | % | 1.12 | % | 1.09 | % | 1.14 | % | ||||||||||||
| Non-interest expense to average assets | 3.21 | % | 3.03 | % | 3.29 | % | 3.18 | % | 3.41 | % | ||||||||||||
| Return on average assets | 1.24 | % | 1.40 | % | 1.17 | % | 1.34 | % | 1.12 | % | ||||||||||||
| Return on average equity | 9.27 | % | 10.21 | % | 10.17 | % | 10.49 | % | 9.76 | % | ||||||||||||
| Net charge-offs to average loans | 0.07 | % | 0.13 | % | 0.08 | % | 0.06 | % | 0.11 | % | ||||||||||||
| (1) | Tier 1 leverage capital and Total risk-based capital as of December 31, 2015 are estimates. | |
| (2) | Net interest margin is defined as net interest income divided by average earning assets. | |
| (3) | Represents the sum of non-interest expense less merger costs all divided by the sum of net interest income and non-interest income. Merger costs were $711,000 for the year ended December 31, 2014. There were no merger costs in the fourth quarter of 2014 or in any period during 2015. | |
| (4) | Represents the sum of total shareholders’ equity less intangible assets all divided by the sum of total assets less intangible assets. Intangible assets were $679,000, $703,000 and $776,000 at December 31, 2015, September 30, 2015 and December 31, 2014, respectively. | |
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PEOPLE’S UTAH BANCORP |
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| December 31, | September 30, | December 31, | |||||||||||||
| (Dollars in thousands, except share data) | 2015 | 2015 | 2014 | ||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 19,745 | $ | 20,878 | $ | 30,277 | |||||||||
| Interest bearing deposits | 20,428 | 119,994 | 16,701 | ||||||||||||
| Federal funds sold | 2,176 | 1,211 | 724 | ||||||||||||
| Total cash and cash equivalents | 42,349 | 142,083 | 47,702 | ||||||||||||
| Investment securities: | |||||||||||||||
| Available for sale, at fair value | 332,736 | 311,138 | 295,637 | ||||||||||||
| Held to maturity, at historical cost | 65,882 | 49,292 | 35,202 | ||||||||||||
| Total investment securities | 398,618 | 360,430 | 330,839 | ||||||||||||
| Non-marketable equity securities | 2,244 | 1,644 | 2,628 | ||||||||||||
| Loans held for sale | 17,947 | 9,907 | 12,272 | ||||||||||||
| Loans: | |||||||||||||||
| Loans held for investment | 1,047,975 | 993,464 | 940,457 | ||||||||||||
| Less allowance for loan losses | (15,557 | ) | (15,527 | ) | (15,151 | ) | |||||||||
| Total loans held for investment, net | 1,032,418 | 977,937 | 925,306 | ||||||||||||
| Premises and equipment, net | 22,104 | 22,395 | 21,608 | ||||||||||||
| Accrued interest receivable | 5,767 | 5,910 | 5,253 | ||||||||||||
| Deferred income tax assets | 8,606 | 7,407 | 7,682 | ||||||||||||
| Other real estate owned | 568 | 619 | 1,673 | ||||||||||||
| Bank-owned life insurance | 19,170 | 19,028 | 6,657 | ||||||||||||
| Other assets | 6,191 | 6,595 | 5,505 | ||||||||||||
| Total assets | $ | 1,555,982 | $ | 1,553,955 | $ | 1,367,125 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing deposits | $ | 408,508 | $ | 428,852 | $ | 327,075 | |||||||||
| Interest bearing deposits | 900,677 | 904,021 | 872,158 | ||||||||||||
| Total deposits | 1,309,185 | 1,332,873 | 1,199,233 | ||||||||||||
| Short-term borrowings | 27,204 | 2,414 | 1,496 | ||||||||||||
| Accrued interest payable | 314 | 312 | 343 | ||||||||||||
| Dividends payable | - | - | 2,066 | ||||||||||||
| Other liabilities | 9,871 | 11,747 | 6,328 | ||||||||||||
| Total liabilities | 1,346,574 | 1,347,346 | 1,209,466 | ||||||||||||
| Commitments and contingencies | |||||||||||||||
| Shareholders’ equity: | |||||||||||||||
| Preferred shares, $0.01 par value | - | - | - | ||||||||||||
| Common shares, $0.01 par value | 176 | 175 | 148 | ||||||||||||
| Additional paid-in capital | 67,338 | 66,769 | 31,137 | ||||||||||||
| Retained earnings | 142,223 | 138,388 | 125,595 | ||||||||||||
| Accumulated other comprehensive income (loss) | (329 | ) | 1,277 | 779 | |||||||||||
| Total shareholders’ equity | 209,408 | 206,609 | 157,659 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,555,982 | $ | 1,553,955 | $ | 1,367,125 | |||||||||
| Common shares outstanding | 17,567,154 | 17,491,552 | 14,758,121 | ||||||||||||
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PEOPLE’S UTAH BANCORP |
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| Three Months Ended | Year Ended | ||||||||||||||||||
| (Dollars in thousands, except share | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
| and per share data) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Interest income | |||||||||||||||||||
| Interest and fees on loans | $ | 15,611 | $ | 15,095 | $ | 13,823 | $ | 58,861 | $ | 51,842 | |||||||||
| Interest and dividends on investments | 1,569 | 1,424 | 1,468 | 5,740 | 6,361 | ||||||||||||||
| Total interest income | 17,180 | 16,519 | 15,291 | 64,601 | 58,203 | ||||||||||||||
| Interest expense | 731 | 730 | 795 | 2,961 | 3,260 | ||||||||||||||
| Net interest income | 16,449 | 15,789 | 14,496 | 61,640 | 54,943 | ||||||||||||||
| Provision for loan losses | 200 | 200 | 600 | 1,000 | 1,700 | ||||||||||||||
| Net interest income after provision for loan losses | 16,249 | 15,589 | 13,896 | 60,640 | 53,243 | ||||||||||||||
| Non-interest income | |||||||||||||||||||
| Service charges on deposit accounts | 579 | 613 | 683 | 2,449 | 2,821 | ||||||||||||||
| Card processing | 1,103 | 1,079 | 1,059 | 4,250 | 4,185 | ||||||||||||||
| Mortgage banking | 1,678 | 1,841 | 1,822 | 7,316 | 6,444 | ||||||||||||||
| Other operating | 392 | 432 | 321 | 1,989 | 1,791 | ||||||||||||||
| Total non-interest income | 3,752 | 3,965 | 3,885 | 16,004 | 15,241 | ||||||||||||||
| Non-interest expense | |||||||||||||||||||
| Salaries and employee benefits | 8,067 | 7,323 | 6,866 | 29,892 | 27,584 | ||||||||||||||
| Occupancy, equipment and depreciation | 1,039 | 969 | 1,052 | 3,953 | 3,889 | ||||||||||||||
| Data processing | 811 | 811 | 785 | 3,159 | 3,086 | ||||||||||||||
| FDIC premiums | 190 | 186 | 215 | 754 | 810 | ||||||||||||||
| Card processing | 501 | 512 | 573 | 2,017 | 2,136 | ||||||||||||||
| Marketing and advertising | 197 | 279 | 332 | 853 | 934 | ||||||||||||||
| Merger-related expenses | - | - | - | - | 711 | ||||||||||||||
| Other | 1,817 | 1,364 | 1,638 | 6,140 | 6,183 | ||||||||||||||
| Total non-interest expense | 12,622 | 11,444 | 11,461 | 46,768 | 45,333 | ||||||||||||||
| Income before income tax expense | 7,379 | 8,110 | 6,320 | 29,876 | 23,151 | ||||||||||||||
| Income tax expense | 2,493 | 2,844 | 2,251 | 10,262 | 8,246 | ||||||||||||||
| Net income | $ | 4,886 | $ | 5,266 | $ | 4,069 | $ | 19,614 | $ | 14,905 | |||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 0.28 | $ | 0.30 | $ | 0.28 | $ | 1.21 | $ | 1.02 | |||||||||
| Diluted | $ | 0.27 | $ | 0.29 | $ | 0.26 | $ | 1.17 | $ | 0.98 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 17,555,236 | 17,467,161 | 14,724,470 | 16,258,424 | 14,677,499 | ||||||||||||||
| Diluted | 18,179,875 | 18,105,768 | 15,266,345 | 16,829,205 | 15,134,025 | ||||||||||||||
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PEOPLE’S UTAH BANCORP |
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| Three Months Ended | |||||||||||||||||||||||||
| December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| (Dollars in thousands, except footnotes) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
| Taxable securities (1) | $ | 286,839 | $ | 1,084 | 1.50 | % | $ | 253,098 | $ | 1,013 | 1.59 | % | |||||||||||||
| Non-taxable securities (1) (2) | 92,336 | 669 | 2.87 | % | 80,562 | 645 | 3.18 | % | |||||||||||||||||
| Loans (3) (4) | 1,015,202 | 15,611 | 6.10 | % | 916,305 | 13,823 | 5.99 | % | |||||||||||||||||
| Total interest earning assets | 1,473,509 | 17,414 | 4.69 | % | 1,291,234 | 15,517 | 4.77 | % | |||||||||||||||||
| Total average assets | 1,561,584 | 1,380,182 | |||||||||||||||||||||||
| Total interest bearing deposits | 909,185 | 728 | 0.32 | % | 873,710 | 795 | 0.36 | % | |||||||||||||||||
| Shareholders’ equity | 209,165 | 158,660 | |||||||||||||||||||||||
| Net interest income (tax-equivalent) | 16,683 | 14,722 | |||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 4.49 | % | 4.52 | % | |||||||||||||||||||||
| Year Ended | |||||||||||||||||||||||||
| December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| (Dollars in thousands, except footnotes) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
| Taxable securities (1) | $ | 257,480 | $ | 3,947 | 1.53 | % | $ | 258,561 | $ | 4,487 | 1.74 | % | |||||||||||||
| Non-taxable securities (1) (2) | 82,211 | 2,501 | 3.04 | % | 82,434 | 2,669 | 3.24 | % | |||||||||||||||||
| Loans (3) (4) | 983,294 | 58,861 | 5.99 | % | 861,785 | 51,842 | 6.02 | % | |||||||||||||||||
| Total interest earning assets | 1,391,108 | 65,476 | 4.71 | % | 1,250,156 | 59,137 | 4.73 | % | |||||||||||||||||
| Total average assets | 1,468,942 | 1,331,291 | |||||||||||||||||||||||
| Total interest bearing deposits | 890,116 | 2,955 | 0.33 | % | 858,051 | 3,258 | 0.38 | % | |||||||||||||||||
| Shareholders’ equity | 186,889 | 152,788 | |||||||||||||||||||||||
| Net interest income (tax-equivalent) | 62,515 | 55,877 | |||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 4.49 | % | 4.47 | % | |||||||||||||||||||||
| (1) | Excludes average unrealized gains of $1.4 million and $1.5 million for the three months ended December 31, 2015 and 2014, respectively, and $1.7 million and $642,000 for the year ended December 31, 2015 and 2014, respectively. | |
| (2) | Includes tax effect on tax-exempt investment security income of $234,000 and $226,000 for the three months ended December 31, 2015 and 2014, respectively, and $875,000 and $934,000 for the year ended December 31, 2015 and 2014, respectively. | |
| (3) | Loan interest income includes loan fees of $1.4 million and $1.0 million for the three months ended December 31, 2015 and 2014, respectively, and $4.9 million and $3.7 million for the year ended December 31, 2015 and 2014, respectively. | |
| (4) | Excludes average non-accrual loans of $8.6 million and $9.5 million for the three months ended December 31, 2015 and 2014, respectively, and $8.0 million and $11.2 million for year ended December 31, 2015 and 2014, respectively. |
