EX-99.1 2 ex-991earningsrelease63015.htm EXHIBIT 99.1 EX-99.1 Earnings Release 6.30.15


EXHIBIT 99.1
SOUTHSIDE BANCSHARES, INC.
ANNOUNCES NET INCOME FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2015
NASDAQ Global Select Market Symbol - “SBSI”


Tyler, Texas, (July 23, 2015) Southside Bancshares, Inc. (“Southside” or the “Company”) (NASDAQ:SBSI) today reported its financial results for the three and six months ended June 30, 2015.

Southside reported net income of $11.2 million for the three months ended June 30, 2015, an increase of $707,000, or 6.8%, when compared to $10.5 million for the same period in 2014. Net income for the six months ended June 30, 2015 increased $1.9 million, or 10.0%, to $20.5 million when compared to $18.7 million for the same period in 2014.

Diluted earnings per common share were $0.44 and $0.53 for the three months ended June 30, 2015 and 2014, respectively, a decrease of $0.09, or 17.0%. For the six months ended June 30, 2015, diluted earnings per common share decreased $0.13, or 13.8%, to $0.81 when compared to $0.94 for the same period in 2014.

The return on average shareholders’ equity for the six months ended June 30, 2015 was 9.55%, compared to 13.80% for the same period in 2014.  The return on average assets was 0.86% for the six months ended June 30, 2015, compared to 1.09% for the same period in 2014.

“Our Company had solid results this quarter and we are on target to deliver on our merger-related expense commitments,” stated Sam Dawson, President and Chief Executive Officer of Southside Bancshares, Inc.  “We recorded approximately $1.3 million, net of tax, of merger-related expense during the second quarter and approximately $3.3 million, net of tax, for the six months. Our balance sheet remained strong, as evidenced by solid asset quality, liquidity and capital.”
“As of June 30, 2015, the integration related to the OmniAmerican (“Omni”) acquisition was almost complete and most of the cost savings associated with the acquisition should be realized beginning in the third quarter. We continue to review the combined organization to pursue additional operational efficiencies and opportunities for revenue generation and cost containment.”
“Total loans increased $5.2 million during the second quarter more than offsetting the continued roll off of the indirect automobile loan portfolio included in the Omni acquisition of approximately $26 million and payoffs in our 1-4 family residential and commercial loan portfolios. During the quarter commercial real estate loans increased $36.4 million, construction loans increased $12.1 million and municipal loans increased $3.7 million. Based on loans committed and the activity in our pipeline, we are anticipating healthy overall net loan growth during 2015. We are focused on executing on our business plan and we continue to add value to our customers and the communities we serve.”
Loans and Deposits

For the six months ended June 30, 2015, total loans decreased by $1.3 million, when compared to December 31, 2014.  During the six months ended June 30, 2015, other real estate loans increased $53.6 million, construction loans increased $5.8 million, commercial loans increased $2.6 million, 1-4 family real estate loans decreased $6.1 million, municipal loans decreased $1.0 million, and loans to individuals decreased $56.2 million.

Nonperforming assets increased during the first six months of 2015 by $15.5 million, to $27.8 million, or 0.57% of total assets, compared to 0.26% at December 31, 2014 primarily due to the downgrade of one large commercial borrowing relationship to impaired status.

During the six months ended June 30, 2015, the allowance for loan losses increased $3.5 million, to $16.8 million, or 0.8% of total loans, compared to 0.6% at December 31, 2014, as a result of the additional provision associated with the increase of impaired loans. The allowance for loan losses as a percentage of total loans decreased from the comparable period in 2014 from 1.32%, as a result of the loans acquired in connection with the Omni acquisition measured at fair value at the acquisition date with no carryover of the allowance for loan loss and the sale of the loans purchased by Southside Financial Group, Inc., both of which occurred in the second half of 2014.

During the six months ended June 30, 2015, deposits, net of brokered deposits, increased $88.8 million, or 2.6%, compared to December 31, 2014. During this six-month period, public fund deposits increased $39.6 million.





Net Interest Income for the Three Months

Net interest income increased $5.0 million, or 18.1%, to $32.9 million for the three months ended June 30, 2015, when compared to $27.9 million for the same period in 2014. The increase in net interest income was primarily the result of the increase in interest income of $5.7 million, compared to the same period in 2014, which was a result of the increase in total loans. For the three months ended June 30, 2015, our net interest spread decreased to 3.30%, compared to 3.79% for the same period in 2014.  The net interest margin decreased to 3.39% for the three months ended June 30, 2015, compared to 3.94% for the same period in 2014.  The net interest spread and margin each decreased as a result of the decrease in the yield on interest-earning assets, which more than offset the decrease in the yield on interest-bearing liabilities compared to the same period in 2014.

Net Interest Income for the Six Months

Net interest income increased $10.9 million, or 19.6%, to $66.7 million for the six months ended June 30, 2015, when compared to $55.7 million for the same period in 2014. The increase in net interest income was primarily the result of the increase in interest income of $12.0 million, compared to the same period in 2014, which was a result of the increase in total loans. For the six months ended June 30, 2015, our net interest spread decreased to 3.36%, compared to 3.79% for the same period in 2014.  The net interest margin decreased to 3.44% for the six months ended June 30, 2015, compared to 3.93% for the same period in 2014.  The net interest spread and margin each decreased as a result of the decrease in the yield on interest-earning assets, which more than offset the decrease in the yield on interest-bearing liabilities compared to the same period in 2014.

Net Income for the Three Months

Net income increased $707,000, or 6.8%, for the three months ended June 30, 2015, to $11.2 million when compared to the same period in 2014. The increase was primarily the result of an increase in interest income of $5.7 million and an increase in noninterest income of $1.9 million combined with a decrease in provision for loan loss of $2.4 million, which were partially offset by a $7.5 million increase in noninterest expense and a $1.1 million increase in income tax expense.

Noninterest expense increased $7.5 million, or 36.7%, for the three months ended June 30, 2015, compared to the same period in 2014, primarily due to increases in salaries and employee benefits expense, occupancy expense, ATM and debit card expense, software and data processing expense and other noninterest expense which were partially offset by a decrease in professional fees.

Net Income for the Six Months

Net income increased $1.9 million, or 10.0%, for the six months ended June 30, 2015, to $20.5 million when compared to the same period in 2014. The increase was primarily the result of an increase in interest income of $12.0 million and an increase in noninterest income of $7.1 million combined with a decrease in provision for loan loss of $2.7 million, which were partially offset by a $17.0 million increase in noninterest expense and a $1.9 million increase in income tax expense.

Noninterest expense increased $17.0 million, or 41.9%, for the six months ended June 30, 2015, compared to the same period in 2014, primarily due to increases in salaries and employee benefits expense, occupancy expense, ATM and debit card expense, software and data processing expense and other noninterest expense which were partially offset by a decrease in professional fees.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $4.9 billion in assets that owns 100% of Southside Bank.  Southside Bank currently has 64 banking centers in Texas and operates a network of over 70 ATMs.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at www.southside.com/investor.  Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data.  To receive e-mail notification of company news, events and stock activity, please register on the E-mail Notification portion of the website.  Questions or comments may be directed to Deborah Wilkinson at (817) 367-4962, or deborah.wilkinson@southside.com.





Forward-Looking Statements
Certain statements of other than historical fact that are contained in this document and in other written material, press releases and oral statements issued by or on behalf of the Company, may be considered to be “forward-looking statements” within the meaning of and subject to the protections of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date.  These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “likely,” “intend,” “probability,” “risk,” “target,” “objective,” “plans,” “potential,” and similar expressions.  Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from the results discussed in the forward-looking statements.  For example, discussions about trends in asset quality, capital, liquidity, the pace of loan growth, merger-related integration cost savings, earnings and certain market risk disclosures, including the impact of interest rate and other economic uncertainty, are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations.  By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future.  
Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 under “Forward-Looking Information” and Item 1A. “Risk Factors,” and in the Company’s other filings with the Securities and Exchange Commission.  The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.





 
At
June 30,
2015
 
At
December 31,
2014
 
At
June 30,
2014
 
 
 
 
 
 
 
(dollars in thousands)
 
(unaudited)
Selected Financial Condition Data (at end of period):
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
4,856,018

 
$
4,807,261

 
$
3,498,662

Loans
2,179,863

 
2,181,133

 
1,391,285

Allowance for loan losses
16,822

 
13,292

 
18,408

Loans held for sale
7,431

 
2,899

 
755

Mortgage-backed securities:
 
 
 
 
 
Available for sale, at estimated fair value
1,094,802

 
1,142,002

 
751,740

Held to maturity, at carrying value
356,669

 
253,496

 
260,659

Investment securities:
 
 
 
 
 
Available for sale, at estimated fair value
371,019

 
306,706

 
351,908

Held to maturity, at carrying value
387,212

 
388,823

 
390,221

Federal Home Loan Bank stock, at cost
37,769

 
39,942

 
25,512

Deposits
3,468,683

 
3,374,417

 
2,601,478

Long-term obligations
632,565

 
660,363

 
566,021

Shareholders' equity
431,674

 
425,243

 
283,960

Nonperforming assets
27,794

 
12,277

 
14,535

Nonaccrual loans
21,223

 
4,096

 
9,620

Accruing loans past due more than 90 days
30

 
4

 
4

Restructured loans
5,667

 
5,874

 
4,036

Other real estate owned
787

 
1,738

 
383

Repossessed assets
87

 
565

 
492

 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
Nonaccruing loans to total loans
0.97
%
 
0.19
%
 
0.69
%
Allowance for loan losses to nonaccruing loans
79.26

 
324.51

 
191.35

Allowance for loan losses to nonperforming assets
60.52

 
108.27

 
126.65

Allowance for loan losses to total loans
0.77

 
0.61

 
1.32

Nonperforming assets to total assets
0.57

 
0.26

 
0.42

Net charge-offs to average loans
0.05

 
1.44

 
1.07

 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
Shareholders’ equity to total assets
8.89

 
8.85

 
8.12

Average shareholders’ equity to average total assets
9.02

 
8.27

 
7.88


Loan Portfolio Composition
The following table sets forth loan totals by category for the periods presented:
 
At
June 30,
2015
 
At
December 31,
2014
 
At
June 30,
2014
 
(in thousands)
 
(unaudited)
Real Estate Loans:
 
 
 
 
 
Construction
$
249,313

 
$
243,486

 
$
164,668

1-4 Family Residential
683,146

 
689,288

 
391,675

Other
538,841

 
485,226

 
271,858

Commercial Loans
237,972

 
235,356

 
156,893

Municipal Loans
256,492

 
257,492

 
239,883

Loans to Individuals
214,099

 
270,285

 
166,308

Total Loans
$
2,179,863

 
$
2,181,133

 
$
1,391,285






 
At or For the
Three Months Ended
June 30,
 
At or For the
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
 
(dollars in thousands)
 
(unaudited)
Selected Operating Data:
 
 
 
 
 
 
 
Total interest income
$
37,750

 
$
32,086

 
$
76,357

 
$
64,325

Total interest expense
4,845

 
4,230

 
9,661

 
8,577

Net interest income
32,905

 
27,856

 
66,696

 
55,748

Provision for loan losses
268

 
2,650

 
4,116

 
6,783

Net interest income after provision for loan losses
32,637

 
25,206

 
62,580

 
48,965

Noninterest income
 
 
 
 
 
 
 
Deposit services
4,920

 
3,794

 
9,909

 
7,432

Net gain on sale of securities available for sale
105

 
498

 
2,581

 
509

Gain on sale of loans
822

 
81

 
1,199

 
161

Trust income
820

 
762

 
1,713

 
1,542

Bank owned life insurance income
653

 
307

 
1,322

 
621

Other
1,099

 
1,073

 
2,743

 
2,056

Total noninterest income
8,419

 
6,515

 
19,467

 
12,321

Noninterest expense
 
 
 
 
 
 
 
Salaries and employee benefits
16,869

 
13,092

 
35,068

 
26,194

Occupancy expense
2,593

 
1,786

 
6,052

 
3,540

Advertising, travel & entertainment
683

 
605

 
1,340

 
1,148

ATM and debit card expense
750

 
302

 
1,429

 
619

Professional fees
793

 
1,304

 
1,535

 
2,231

Software and data processing expense
1,237

 
486

 
2,268

 
987

Telephone and communications
603

 
320

 
1,072

 
598

FDIC insurance
629

 
434

 
1,267

 
882

Other
3,768

 
2,097

 
7,603

 
4,409

Total noninterest expense
27,925

 
20,426

 
57,634

 
40,608

Income before income tax expense
13,131

 
11,295

 
24,413

 
20,678

Income tax expense
1,967

 
838

 
3,870

 
1,997

Net income
$
11,164

 
$
10,457

 
$
20,543

 
$
18,681



Common share data:
 
 
 
 
 
 
Weighted-average basic shares outstanding
25,337

 
19,776

 
25,330

 
19,769

Weighted-average diluted shares outstanding
25,425

 
19,873

 
25,414

 
19,862

Net income per common share
 
 
 
 
 
 
 
Basic
$
0.44

 
$
0.53

 
$
0.81

 
$
0.94

Diluted
0.44

 
0.53

 
0.81

 
0.94

Book value per common share

 

 
17.03

 
14.35

Cash dividend paid per common share
0.23

 
0.21

 
0.46

 
0.42






 
At or For the
Three Months Ended
June 30,
 
At or For the
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
 
(unaudited)
 
(unaudited)
Selected Performance Ratios:
 
 
 
 
 
 
 
Return on average assets
0.93
%
 
1.22
%
 
0.86
%
 
1.09
%
Return on average shareholders’ equity
10.30

 
15.09

 
9.55

 
13.80

Average yield on interest earning assets
3.83

 
4.46

 
3.89

 
4.46

Average yield on interest bearing liabilities
0.53

 
0.67

 
0.53

 
0.67

Net interest spread
3.30

 
3.79

 
3.36

 
3.79

Net interest margin
3.39

 
3.94

 
3.44

 
3.93

Average interest earnings assets to average interest bearing liabilities
120.22

 
127.57

 
119.28

 
125.58

Noninterest expense to average total assets
2.34

 
2.37

 
2.42

 
2.36

Efficiency ratio
59.98

 
53.51

 
61.04

 
53.40






RESULTS OF OPERATIONS

The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES AND YIELDS
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
June 30, 2015
 
June 30, 2014
 
AVG
 
 
 
AVG
 
AVG
 
 
 
AVG
 
BALANCE
 
INTEREST
 
YIELD
 
BALANCE
 
INTEREST
 
YIELD
ASSETS
 
 
 
 
 
 
 
 
 
 
 
INTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Loans (1)(2)
$
2,188,886

 
$
24,889

 
4.56
%
 
$
1,371,609

 
$
19,302

 
5.64
%
Loans Held For Sale
3,675

 
45

 
4.91
%
 
335

 
3

 
3.59
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Investment Securities (Taxable) (4)
86,561

 
459

 
2.13
%
 
31,250

 
143

 
1.84
%
Investment Securities (Tax-Exempt)(3)(4)
627,405

 
8,752

 
5.60
%
 
655,865

 
9,032

 
5.52
%
Mortgage-backed Securities (4)
1,400,389

 
7,666

 
2.20
%
 
1,125,085

 
7,557

 
2.69
%
Total Securities
2,114,355

 
16,877

 
3.20
%
 
1,812,200

 
16,732

 
3.70
%
FHLB stock and other investments, at cost
42,741

 
65

 
0.61
%
 
28,109

 
38

 
0.54
%
Interest Earning Deposits
39,609

 
29

 
0.29
%
 
34,693

 
22

 
0.25
%
Total Interest Earning Assets
4,389,266

 
41,905

 
3.83
%
 
3,246,946

 
36,097

 
4.46
%
NONINTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Cash and Due From Banks
49,760

 
 
 
 
 
42,887

 
 
 
 
Bank Premises and Equipment
111,384

 
 
 
 
 
53,108

 
 
 
 
Other Assets
259,319

 
 
 
 
 
126,015

 
 
 
 
Less:  Allowance for Loan Loss
(17,059
)
 
 
 
 
 
(18,635
)
 
 
 
 
Total Assets
$
4,792,670

 
 
 
 
 
$
3,450,321

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Savings Deposits
$
234,097

 
59

 
0.10
%
 
$
116,390

 
34

 
0.12
%
Time Deposits
853,410

 
1,313

 
0.62
%
 
603,903

 
1,070

 
0.71
%
Interest Bearing Demand Deposits
1,701,559

 
1,121

 
0.26
%
 
1,223,788

 
880

 
0.29
%
Total Interest Bearing Deposits
2,789,066

 
2,493

 
0.36
%
 
1,944,081

 
1,984

 
0.41
%
Short-term Interest Bearing Liabilities
232,471

 
154

 
0.27
%
 
32,777

 
56

 
0.69
%
Long-term Interest Bearing Liabilities – FHLB Dallas
569,302

 
1,837

 
1.29
%
 
508,128

 
1,836

 
1.45
%
Long-term Debt (5)
60,311

 
361

 
2.40
%
 
60,311

 
354

 
2.35
%
Total Interest Bearing Liabilities
3,651,150

 
4,845

 
0.53
%
 
2,545,297

 
4,230

 
0.67
%
NONINTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Demand Deposits
669,068

 
 
 
 
 
597,852

 
 
 
 
Other Liabilities
37,607

 
 
 
 
 
29,241

 
 
 
 
Total Liabilities
4,357,825

 
 
 
 
 
3,172,390

 
 
 
 
SHAREHOLDERS’ EQUITY
434,845

 
 
 
 
 
277,931

 
 
 
 
Total Liabilities and Shareholders’ Equity
$
4,792,670

 
 
 
 
 
$
3,450,321

 
 
 
 
NET INTEREST INCOME
 
 
$
37,060

 
 
 
 
 
$
31,867

 
 
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS
 
 
 
 
3.39
%
 
 
 
 
 
3.94
%
NET INTEREST SPREAD
 
 
 
 
3.30
%
 
 
 
 
 
3.79
%

(1)
Interest on loans includes net fees on loans that are not material in amount.
(2)
Interest income includes taxable-equivalent adjustments of $1,047 and $1,000 for the three months ended June 30, 2015 and 2014, respectively.
(3)
Interest income includes taxable-equivalent adjustments of $3,108 and $3,011 for the three months ended June 30, 2015 and 2014, respectively.
(4)
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
(5)
Represents the issuance of junior subordinated debentures.

Note: As of June 30, 2015 and 2014, loans on nonaccrual status totaled $21,223 and $9,620, respectively. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.






 
 
 
AVERAGE BALANCES AND YIELDS
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
Six Months Ended
 
 
 
 
 
June 30, 2015
 
June 30, 2014
 
AVG
 
 
 
AVG
 
AVG
 
 
 
AVG
 
BALANCE
 
INTEREST
 
YIELD
 
BALANCE
 
INTEREST
 
YIELD
ASSETS
 
 
 
 
 
 
 
 
 
 
 
INTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Loans (1) (2)
$
2,189,023

 
$
49,827

 
4.59
%
 
$
1,368,110

 
$
38,677

 
5.70
%
Loans Held For Sale
2,835

 
73

 
5.19
%
 
379

 
8

 
4.26
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Investment Securities (Taxable)(4)
68,102

 
696

 
2.06
%
 
28,856

 
266

 
1.86
%
Investment Securities (Tax-Exempt)(3)(4)
636,269

 
17,586

 
5.57
%
 
649,639

 
17,874

 
5.55
%
Mortgage-backed Securities (4)
1,396,519

 
16,128

 
2.33
%
 
1,136,608

 
15,239

 
2.70
%
Total Securities
2,100,890

 
34,410

 
3.30
%
 
1,815,103

 
33,379

 
3.71
%
FHLB stock and other investments, at cost
43,311

 
158

 
0.74
%
 
29,855

 
108

 
0.73
%
Interest Earning Deposits
49,040

 
63

 
0.26
%
 
51,947

 
65

 
0.25
%
Total Interest Earning Assets
4,385,099

 
84,531

 
3.89
%
 
3,265,394

 
72,237

 
4.46
%
NONINTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
Cash and Due From Banks
53,542

 
 
 
 
 
44,430

 
 
 
 
Bank Premises and Equipment
112,006

 
 
 
 
 
52,699

 
 
 
 
Other Assets
270,806

 
 
 
 
 
123,572

 
 
 
 
Less: Allowance for Loan Loss
(15,351
)
 
 
 
 
 
(18,641
)
 
 
 
 
Total Assets
$
4,806,102

 
 
 
 
 
$
3,467,454

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Savings Deposits
$
232,033

 
112

 
0.10
%
 
$
114,052

 
69

 
0.12
%
Time Deposits
858,416

 
2,675

 
0.63
%
 
620,631

 
2,233

 
0.73
%
Interest Bearing Demand Deposits
1,700,399

 
2,235

 
0.27
%
 
1,239,645

 
1,798

 
0.29
%
Total Interest Bearing Deposits
2,790,848

 
5,022

 
0.36
%
 
1,974,328

 
4,100

 
0.42
%
Short-term Interest Bearing Liabilities
252,276

 
296

 
0.24
%
 
60,952

 
127

 
0.42
%
Long-term Interest Bearing Liabilities – FHLB Dallas
572,731

 
3,629

 
1.28
%
 
504,617

 
3,644

 
1.46
%
Long-term Debt (5)
60,311

 
714

 
2.39
%
 
60,311

 
706

 
2.36
%
Total Interest Bearing Liabilities
3,676,166

 
9,661

 
0.53
%
 
2,600,208

 
8,577

 
0.67
%
NONINTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
Demand Deposits
657,386

 
 
 
 
 
566,782

 
 
 
 
Other Liabilities
38,827

 
 
 
 
 
27,392

 
 
 
 
Total Liabilities
4,372,379

 
 
 
 
 
3,194,382

 
 
 
 
SHAREHOLDERS’ EQUITY
433,723

 
 
 
 
 
273,072

 
 
 
 
Total Liabilities and Shareholders’ Equity
$
4,806,102

 
 
 
 
 
$
3,467,454

 
 
 
 
NET INTEREST INCOME
 
 
$
74,870

 
 
 
 
 
$
63,660

 
 
NET INTEREST MARGIN ON AVERAGE EARNING ASSETS
 
 
 
 
3.44
%
 
 
 
 
 
3.93
%
NET INTEREST SPREAD
 
 
 
 
3.36
%
 
 
 
 
 
3.79
%

(1)
Interest on loans includes net fees on loans that are not material in amount.
(2)
Interest income includes taxable-equivalent adjustments of $2,097 and $2,017 for the six months ended June 30, 2015 and 2014, respectively.
(3)
Interest income includes taxable-equivalent adjustments of $6,077 and $5,895 for the six months ended June 30, 2015 and 2014, respectively.
(4)
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
(5)
Represents the issuance of junior subordinated debentures.

Note: As of June 30, 2015 and 2014, loans on nonaccrual status totaled $21,223 and $9,620, respectively. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.