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Green Bancorp, Inc. Reports First Quarter 2018 Financial Results

2018 First Quarter Significant Items (GAAP)

  • First quarter 2018 net income totaled $9.4 million, or $0.25 per diluted common share

  • First quarter 2018 efficiency ratio was 50.81%

  • First quarter 2018 net interest margin expanded 23 bps to 3.87% from 3.64% during fourth quarter 2017

  • Noninterest-bearing deposits increased $46.1 million during Q1 2018 and now comprise 24.6% of total deposits

2018 First Quarter Significant Items (Non-GAAP)

  • First quarter 2018 net operating earnings totaled $9.7 million, or $0.26 per diluted share

  • First quarter 2018 operating efficiency ratio was 49.90%

  • Pre-tax, pre-provision operating return on average assets (annualized) was 2.10% for Q1 2018, representing the 4th consecutive quarter over 2.00%

HOUSTON, April 26, 2018 (GLOBE NEWSWIRE) -- Green Bancorp, Inc. (NASDAQ:GNBC), the bank holding company (“Green Bancorp” or the “Company”) that operates Green Bank, N.A. (“Green Bank”), today announced results for its first quarter ended March 31, 2018.  The Company reported net income for the quarter of $9.4 million, or $0.25 per diluted common share.

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, “We reported pre-tax, pre-provision operating earnings for the first quarter of $21.7 million, up 8% annualized from the $21.3 million that we reported in the fourth quarter of 2017, which demonstrates the core earnings power of the Bank. While our provision expense was elevated this quarter primarily related to a healthcare credit that moved to nonaccrual, we are confident that our credit profile is stable, our problem loans are isolated, and our NPA trends are expected to show meaningful improvement. Given the confidence in our outlook, our Board of Directors has determined that it is in the best interest of the Company and our shareholders to initiate a regular quarterly cash dividend of $0.10 per share to be paid in May. We believe this decision reflects the Bank’s improved financial performance that we have experienced over the last year which we expect to continue.”

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank, commented, “During the first quarter, we experienced typical seasonal trends which led to a $54.0 million decline in loan balances. Looking forward, the economic backdrop in our primary markets remains favorable and we remain confident in our guidance of 7 to 9% loan growth for the full year 2018. We also continued to make solid progress in growing our core deposit base, as noninterest-bearing deposits increased $46.1 million and now comprise 24.6% of total deposits. The successful execution of our strategy to improve our deposit mix should help to offset some of the deposit price pressures that will come as the Fed continues to raise interest rates.”

Results of Operations -Quarter Ended March 31, 2018 compared with Quarter Ended December 31, 2017

Net income for the quarter ended March 31, 2018 was $9.4 million, an increase of $6.7 million, or 257.5%, compared with $2.6 million for the quarter ended December 31, 2017.  Net income per diluted common share was $0.25 for the quarter ended March 31, 2018, compared with $0.07 for the quarter ended December 31, 2017.  Net income for the quarter ended December 31, 2017 was reduced by income tax expense of $5.8 million related to the deferred tax asset revaluation due to enactment of the Tax Cuts and Jobs Act and $3.1 million in stock-based compensation expense, or $2.0 million net of the related tax benefit, for the accelerated vesting of certain performance options, with no comparable expenses in the quarter ended March 31, 2018.  During the quarter ended March 31, 2018, provision for loan losses increased $5.3 million, which was offset by increases of $1.4 million in net interest income and $1.2 million in noninterest income.  Provision for income taxes decreased during the current quarter due to lower pre-tax net income and the reduction in the statutory tax rate to 21% effective January 1, 2018.  Returns on average assets and average common equity, each on an annualized basis, for the three months ended March 31, 2018 were 0.90% and 8.15%, respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 50.81% for the three months ended March 31, 2018.

Net interest income before provision for loan losses for the quarter ended March 31, 2018 increased $1.4 million, or 3.9%, to $38.2 million, compared with $36.8 million for the quarter ended December 31, 2017.  The increase in net interest income was comprised of a $1.9 million, or 4.2%, increase in interest income, offset by a $500 thousand, or 5.9%, increase in interest expense.  Net interest margin for the quarter ended March 31, 2018 was 3.87%, compared with 3.64% for the quarter ended December 31, 2017.  

Noninterest income for the quarter ended March 31, 2018 was $5.2 million, an increase of $1.2 million, or 31.3%, from $3.9 million for the quarter ended December 31, 2017.  The increase was primarily due to a $1.1 million net loss on held for sale loans in the prior quarter, with no loss recorded in the current quarter, offset by $707 thousand decrease in gain on sale of guaranteed portion of loans.

Noninterest expense for the quarter ended March 31, 2018 was $22.1 million, a decrease of $1.5 million, or 6.5%, from $23.6 million for the quarter ended December 31, 2017.  The decrease was primarily due to a $1.4 million decrease in salaries and employee benefits, a $585 thousand decrease in loan related expenses, offset by a $575 thousand increase in the reserve for unfunded commitments. The $1.4 million decrease in salaries and employee benefits is primarily due to the $3.1 million in stock-based compensation expense for the accelerated vesting of certain performance options recorded in the quarter ended December 31, 2017, which was offset by additional stock-based compensation expense of $1.2 million in the current quarter.  The additional stock-based compensation expense in the current quarter includes $701 thousand related to new awards issued during the restructuring of the remaining performance options and an increase of $335 thousand related to stock appreciation rights.

Total loans, which includes loans held for investment and loans held for sale, at March 31, 2018 were $3.1 billion, a decrease of $53.8 million, or 1.7%, when compared with December 31, 2017.  The decrease is primarily due to a $34.4 million decrease in mortgage warehouse loans, $27.6 million decrease in commercial and industrial loans and a $16.2 million reduction in construction and land loans, offset by a $20.1 million increase in owner occupied commercial real estate loans.  At March 31, 2018, energy loans totaled $50.0 million, or 1.6% of total loans.  SBA loans comprise the balance of loans held for sale at March 31, 2018.

Deposits at March 31, 2018 were $3.5 billion, an increase of $56.6 million, or 1.7%, compared with December 31, 2017.  The net increase is comprised of increases of $46.1 million, or 5.7%, in noninterest-bearing deposits, $6.4 million in interest-bearing transaction and savings deposits and $4.1 million in time deposits.  Noninterest-bearing deposits totaled 24.6% of total deposits at March 31, 2018.  Average deposits decreased $73.5 million, or 2.1%, for the quarter ended March 31, 2018, compared with the prior quarter.

Asset Quality -Quarter Ended March 31, 2018 compared with Quarter Ended December 31, 2017

Nonperforming assets totaled $84.7 million, or 2.00% of period end total assets, at March 31, 2018, an increase of $13.1 million, compared with $71.6 million, or 1.68% of period end total assets, at December 31, 2017.  The increase was primarily due to the downgrade of a syndicated healthcare credit.  Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $13.6 million at March 31, 2018, compared with $13.1 million at December 31, 2017.  Real estate acquired through foreclosure totaled $802 thousand at March 31, 2018.

The allowance for loan losses was 1.22% of total loans held for investment at March 31, 2018, compared with 0.98% of total loans held for investment at December 31, 2017.  At March 31, 2018, the Company’s allowance for loan losses to total loans held for investment, excluding acquired loans that are accounted for under ASC 310-20 and ASC 310-30 and their related allowance, was 1.36%.  Further, the allowance for loan losses plus acquired loan net discount to total loans held for investment adjusted for acquired loan net discount was 1.33% as of March 31, 2018.

The Company recorded a provision for loan losses of $9.7 million for the quarter ended March 31, 2018 up from the $4.4 million provision for loan losses recorded for the quarter ended December 31, 2017.  The first quarter of 2018 provision was primarily due to the addition of specific reserves, with $3.8 million related to energy loans and $5.9 million to a syndicated healthcare credit.  Uncertainty related to loans in the counties affected by Hurricane Harvey has significantly diminished as we continue to monitor the loans initially identified as having some level of impact. 

Net charge-offs were $2.7 million, or 0.08% of average loans, for the quarter ended March 31, 2018, compared with net charge-offs of $6.7 million, or 0.22% of average loans, for the quarter ended December 31, 2017.  Net charge-offs included partial charge-offs of $2.7 million in energy production loans during the quarter ended March 31, 2018, a decrease from $6.2 million for the quarter ended December 31, 2017.

Dividend Information

On April 25, 2018, Green Bancorp’s Board of Directors declared the initiation of a regular quarterly cash dividend of $0.10 per share on its outstanding shares of common stock, payable on May 24, 2018 to shareholders of record as of May 10, 2018.

Non-GAAP Financial Measures

Green Bancorp’s management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance.  Specifically, Green Bancorp reviews tangible book value per common share, the tangible common equity to tangible assets ratio, the return on average tangible common equity ratio, allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans, allowance for loan losses plus acquired loans net discount to total loans held for investment adjusted for acquired loan net discount, operating earnings, pre-tax, pre-provision operating earnings, diluted operating earnings per share, operating return on average assets, operating return on average tangible common equity and operating efficiency ratio.  Green Bancorp has included in this Earnings Release information related to these non-GAAP financial measures for the applicable periods presented.  Please refer to the “Notes to Financial Highlights” at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.

Conference Call

As previously announced, Green Bancorp will hold a conference call today, April 26, 2018, to discuss its first quarter results at 5:00 p.m. (Eastern Time).  The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562 and requesting to be joined to the Green Bancorp First Quarter Earnings Conference Call.  A replay will be available starting at 8:00 p.m. (Eastern Time) on April 26, 2018 and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671.  The passcode for the replay is 13678215.  The replay will be available until 11:59 p.m. (Eastern Time) on May 3, 2018.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company's website at investors.greenbank.com.  The online replay will remain available for a limited time beginning immediately following the call.

To learn more about Green Bancorp, please visit the Company's website at www.greenbank.com.  Green Bancorp uses its website as a channel of distribution for material Company information.  Financial and other material information regarding Green Bancorp is routinely posted on the Company's website and is readily accessible.

About Green Bancorp, Inc.

Headquartered in Houston, Texas, Green Bancorp is a bank holding company that operates Green Bank in the Houston and Dallas metropolitan areas and Austin, Louisville and Honey Grove.  Commercial-focused, Green Bank is a nationally chartered bank regulated by the Office of the Comptroller of the Currency, a division of the Department of the Treasury of the United States.

Forward Looking Statement

The information presented herein and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving Green Bancorp’s expectations or predictions of future financial or business performance or conditions.  Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions.  These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. Forward-looking statements speak only as of the date they are made and we assume no duty to update forward-looking statements.

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made.  These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information.  By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.

Statements about the expected timing, completion and effects of the proposed transactions and all other statements in this release other than historical facts constitute forward-looking statements.

In addition to factors previously disclosed in Green Bancorp’s reports filed with the SEC and those identified elsewhere in this communication, the following factors among others, could cause actual results to differ materially from forward-looking statements: changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Media & Investor Relations Contacts:

Geoff Greenwade   Terry Earley
President   Chief Financial Officer
713-275-8203   713-316-3672
ggreenwade@greenbank.com   tearley@greenbank.com


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Period End Balance Sheet Data:                    
Cash and cash equivalents   $ 142,144     $ 140,681     $ 179,463     $ 134,995     $ 255,581  
Securities   729,146     718,814     707,989     718,750     589,468  
Other investments   38,157     27,283     22,443     26,002     19,057  
                     
Loans held for sale   7,461     7,156     17,673     18,030     17,350  
Loans held for investment   3,136,336     3,190,485     3,071,761     3,123,355     3,012,275  
Total Loans   3,143,797     3,197,641     3,089,434     3,141,385     3,029,625  
Allowance for loan losses   (38,233 )   (31,220 )   (33,480 )   (31,991 )   (31,936 )
Goodwill   85,291     85,291     85,291     85,291     85,291  
Core deposit intangibles, net   8,187     8,503     8,835     9,215     9,595  
Real estate acquired through foreclosure   802     802     802     921     1,356  
Premises and equipment, net   23,694     24,002     29,733     30,108     30,604  
Other assets   92,262     90,119     70,415     71,021     83,359  
Total assets   $ 4,225,247     $ 4,261,916     $ 4,160,925     $ 4,185,697     $ 4,072,000  
                     
Noninterest-bearing deposits   $ 849,297     $ 803,210     $ 684,329     $ 683,656     $ 705,480  
Interest-bearing transaction and savings deposits   1,337,973     1,331,601     1,383,514     1,324,307     1,404,988  
Certificates and other time deposits   1,266,457     1,262,332     1,340,410     1,352,459     1,305,670  
Total deposits   3,453,727     3,397,143     3,408,253     3,360,422     3,416,138  
Securities sold under agreements to repurchase   4,948     5,173     5,867     5,221     4,316  
Other borrowed funds   230,000     325,000     215,000     305,000     150,000  
Subordinated debentures and subordinated notes   47,878     47,737     47,596     47,454     47,304  
Other liabilities   19,816     23,068     21,898     15,859     16,954  
Total liabilities   3,756,369     3,798,121     3,698,614     3,733,956     3,634,712  
Shareholders' equity   468,878     463,795     462,311     451,741     437,288  
Total liabilities and equity   $ 4,225,247     $ 4,261,916     $ 4,160,925     $ 4,185,697     $ 4,072,000  
 


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

     
    For the Quarter Ended
    Mar 31,
2018
  Dec 31,
2017
  Sep 30,
2017
  Jun 30,
2017
  Mar 31,
2017
                     
    (Dollars in thousands)
Income Statement Data:                    
Interest income:                    
Loans, including fees   $ 41,799     $ 39,870     $ 39,549     $ 38,476     $ 36,371  
Securities   4,558     4,446     4,337     3,928     2,583  
Other investments   300     241     221     197     188  
Deposits in financial institutions and fed funds sold   493     671     432     331     409  
Total interest income   47,150     45,228     44,539     42,932     39,551  
Interest expense:                    
Transaction and savings deposits   2,464     2,588     2,502     2,230     1,978  
Certificates and other time deposits   4,071     4,017     4,042     3,786     3,607  
Subordinated debentures and subordinated notes   1,079     1,065     1,059     1,051     1,041  
Other borrowed funds   1,294     738     657     560     282  
Total interest expense   8,908     8,408     8,260     7,627     6,908  
Net interest income   38,242     36,820     36,279     35,305     32,643  
Provision for loan losses   9,663     4,405     2,300     1,510     6,145  
Net interest income after provision for loan losses   28,579     32,415     33,979     33,795     26,498  
Noninterest income:                    
Customer service fees   2,395     2,273     2,365     2,199     2,266  
Loan fees   833     704     871     1,106     834  
(Loss) gain on sale of available-for-sale securities, net           (332 )   294      
(Loss) gain on held for sale loans, net       (1,098 )   (1,294 )   222     (138 )
Gain on sale of guaranteed portion of loans, net   941     1,648     1,302     878     1,927  
Other   989     401     478     1,000     606  
Total noninterest income   5,158     3,928     3,390     5,699     5,495  
Noninterest expense:                    
Salaries and employee benefits   13,601     14,996     12,487     12,653     12,406  
Occupancy   2,077     2,069     2,080     2,048     1,997  
Professional and regulatory fees   2,261     2,241     2,331     1,899     2,397  
Data processing   972     981     924     995     908  
Software license and maintenance   716     636     464     438     489  
Marketing   176     259     154     163     199  
Loan related   47     632     271     301     600  
Real estate acquired by foreclosure, net   12     30     159     223     292  
Other   2,191     1,738     1,197     891     1,551  
Total noninterest expense   22,053     23,582     20,067     19,611     20,839  
Income before income taxes   11,684     12,761     17,302     19,883     11,154  
Provision for income taxes   2,322     10,142     5,895     6,985     3,942  
Net income   $ 9,362     $ 2,619     $ 11,407     $ 12,898     $ 7,212  
 


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

     
    For the Quarter Ended
    Mar 31,
2018
  Dec 31,
2017
  Sep 30,
2017
  Jun 30,
2017
  Mar 31,
2017
                     
    (Dollars in thousands)
Per Share Data (Common Stock):                    
Basic earnings per common share   $ 0.25     $ 0.07     $ 0.31     $ 0.35     $ 0.19  
Diluted earnings per share   0.25     0.07     0.31     0.35     0.19  
Book value per common share   12.62     12.50     12.46     12.20     11.81  
Tangible book value per common share (1)   10.10     9.97     9.93     9.65     9.25  
                     
Common Stock Data:                    
Shares outstanding at period end   37,163     37,103     37,096     37,035     37,015  
Weighted average basic shares outstanding for the period   37,341     37,103     37,056     37,023     36,990  
Weighted average diluted shares outstanding for the
   period
  37,586     37,393     37,332     37,264     37,238  
                     
Selected Performance Metrics:                    
Return on average assets(2)   0.90 %   0.25 %   1.10 %   1.26 %   0.73 %
Pre-tax, pre-provision operating return on average
   assets(1)(2)
  2.10     2.01     2.04     2.04     1.76  
Return on average equity(2)   8.15     2.23     9.90     11.62     6.71  
Return on average tangible common equity(1)(2)   10.47     3.02     12.74     15.04     8.88  
Efficiency ratio   50.81     57.87     50.59     47.83     54.64  
Loans to deposits ratio   90.81     93.92     90.13     92.95     88.18  
Net interest margin   3.87     3.64     3.65     3.63     3.47  
Noninterest expense to average assets(2)   2.13     2.23     1.93     1.92     2.10  
                     
Selected Performance Metrics - Operating:(1)                    
Diluted operating earnings per share   $ 0.26     $ 0.14     $ 0.33     $ 0.34     $ 0.20  
Operating return on average assets (2)   0.93 %   0.50 %   1.20 %   1.23 %   0.74 %
Operating return on average tangible common equity(2)   10.81     5.90     13.89     14.66     8.99  
Operating efficiency ratio   49.90     47.69     46.49     49.09     54.28  
                     
Green Bancorp Capital Ratios:                    
Average shareholders’ equity to average total assets   11.1 %   11.1 %   11.1 %   10.9 %   10.8 %
Tier 1 capital to average assets (leverage)   9.8     9.5     9.5     9.3     9.1  
Common equity tier 1 capital   10.9     10.5     10.6     10.1     10.0  
Tier 1 capital to risk-weighted assets   11.2     10.9     11.0     10.5     10.4  
Total capital to risk-weighted assets   13.3     12.7     12.9     12.4     12.3  
Tangible common equity to tangible assets(1)   9.1     8.9     9.1     8.7     8.6  
                     
Green Bank Capital Ratios:                    
Tier 1 capital to average assets (leverage)   10.4 %   10.1 %   10.1 %   9.6 %   9.1 %
Common equity tier 1 capital   12.0     11.6     11.8     10.9     10.4  
Tier 1 capital to risk-weighted assets   12.0     11.6     11.8     10.9     10.4  
Total capital to risk-weighted assets   13.0     12.4     12.6     11.7     11.2  
                               

(1)       Refer to “Notes to Financial Highlights” at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.
(2)       Annualized ratio.


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

     
    For the Quarter Ended
    March 31, 2018   December 31, 2017   March 31, 2017
    Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
  Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
  Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
  Average
Yield/
Rate
                                     
    (Dollars in thousands)
Assets                                    
Interest-Earning Assets:                                    
Loans   $ 3,128,803     $ 41,799        5.42 %   $ 3,082,005     $ 39,870        5.13 %   $ 3,035,146     $ 36,371        4.86 %
Securities   719,843     4,558     2.57     713,137     4,446     2.47     571,875     2,583     1.83  
Other investments   32,191     300     3.78     23,359     241     4.09     18,908     188     4.03  
Interest earning deposits in financial institutions and federal funds sold   124,487     493     1.61     197,454     671     1.35     186,418     409     0.89  
Total interest-earning assets   4,005,324     47,150     4.77 %   4,015,955     45,228     4.47 %   3,812,347     39,551     4.21 %
Allowance for loan losses   (32,234 )           (33,708 )           (27,669 )        
Noninterest-earning assets   231,110             221,858             232,066          
Total assets   $ 4,204,200             $ 4,204,105             $ 4,016,744          
                                     
Liabilities and Shareholders’ Equity                                    
Interest-bearing liabilities:                                    
Interest-bearing demand and savings deposits   $ 1,301,898     $ 2,464     0.77 %   $ 1,387,873     $ 2,588     0.74 %   $ 1,382,680     $ 1,978     0.58 %
Certificates and other time deposits   1,262,644     4,071     1.31     1,290,277     4,017     1.24     1,325,329     3,607     1.10  
Securities sold under agreements to repurchase   5,200     2     0.16     5,153     2     0.15     3,494     1     0.12  
Other borrowed funds   314,833     1,292     1.66     237,989     736     1.23     160,778     281     0.71  
Subordinated debentures and subordinated notes   47,814     1,079     9.15     47,673     1,065     8.86     47,550     1,041     8.88  
Total interest-bearing liabilities   2,932,389     8,908     1.23 %   2,968,965     8,408     1.12 %   2,919,831     6,908     0.96 %
                                     
Noninterest-bearing liabilities:                                    
Noninterest-bearing demand deposits   785,784             745,707             644,212          
Other liabilities   20,012             23,574             17,006          
Total liabilities   3,738,185             3,738,246             3,581,049          
Shareholders’ equity   466,015             465,859             435,695          
Total liabilities and shareholders’ equity   $ 4,204,200             $ 4,204,105             $ 4,016,744          
                                     
Net interest rate spread           3.54 %           3.35 %           3.25 %
Net interest income and margin(1)       $ 38,242     3.87 %       $ 36,820     3.64 %       $ 32,643     3.47 %
 

(1)            Net interest margin is equal to net interest income divided by interest-earning assets.

Green Bancorp, Inc.
Financial Highlights
(Unaudited)

Yield Trend

     
    For the Quarter Ended
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
Average yield on interest-earning assets:                    
Loans, including fees      5.42 %      5.13 %      5.11 %      5.02 %      4.86 %
Securities   2.57     2.47     2.42     2.32     1.83  
Other investments   3.78     4.09     3.37     3.45     4.03  
Interest-earning deposits in financial institutions and federal funds sold   1.61     1.35     1.27     1.06     0.89  
Total interest-earning assets   4.77 %   4.47 %   4.48 %   4.42 %   4.21 %
                     
Average rate on interest-bearing liabilities:                    
Interest-bearing transaction and savings   0.77 %   0.74 %   0.74 %   0.66 %   0.58 %
Certificates and other time deposits   1.31     1.24     1.19     1.16     1.10  
Other borrowed funds   1.64     1.20     1.11     1.01     0.70  
Subordinated debentures   9.15     8.86     8.84     8.90     8.88  
Total interest-bearing liabilities   1.23 %   1.12 %   1.10 %   1.04 %   0.96 %
                     
Net interest rate spread   3.54 %   3.35 %   3.38 %   3.38 %   3.25 %
Net interest margin(1)   3.87 %   3.64 %   3.65 %   3.63 %   3.47 %
                               

(1)       Net interest margin is equal to net interest income divided by interest-earning assets.


Supplemental Yield Trend

     
    For the Quarter Ended
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
Average yield on loans, excluding fees and discounts(2)      4.94 %      4.74 %      4.69 %      4.59 %      4.42 %
Average cost of interest-bearing deposits   1.03     0.98     0.96     0.90     0.84  
Average cost of total deposits, including noninterest-bearing   0.79     0.77     0.77     0.72     0.68  
                               

(2)       Average yield on loans, excluding fees and discounts, is equal to loan interest income divided by average loan principal.

Green Bancorp, Inc.
Financial Highlights
(Unaudited)

Portfolio Composition

                     
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                                         
    (Dollars in thousands)
Period End Balances                                        
                                         
Commercial & industrial   $ 1,038,715     33.1 %   $ 1,066,266     33.4 %   $ 926,382     30.2 %   $ 930,793     29.8 %   $ 877,228     29.1 %
Mortgage warehouse   185,849     5.9 %   220,230     6.9 %   222,468     7.2 %   213,539     6.8 %   135,754     4.5 %
Real Estate:                                        
Owner occupied commercial   435,366     13.9     415,230     13.0     408,398     13.3     407,317     13.0     415,595     13.8  
Commercial   1,068,832     34.2     1,067,779     33.5     1,068,742     34.8     1,109,237     35.5     1,129,031     37.5  
Construction, land & land
   development
  148,732     4.7     164,952     5.2     193,856     6.3     201,992     6.5     201,946     6.7  
Residential mortgage   242,529     7.7     238,580     7.5     235,089     7.7     239,834     7.7     241,839     8.0  
Consumer and Other   16,313     0.5     17,448     0.5     16,826     0.5     20,643     0.7     10,882     0.4  
Total loans held for investment   $ 3,136,336     100.0 %   $ 3,190,485     100.0 %   $ 3,071,761     100.0 %   $ 3,123,355     100.0 %   $ 3,012,275     100.0 %
                                         
Deposits:                                        
Noninterest-bearing   $ 849,297     24.6 %   $ 803,210     23.6 %   $ 684,329     20.1 %   $ 683,656     20.3 %   $ 705,480     20.7 %
Interest-bearing transaction   248,680     7.2     200,769     5.9     201,860     5.9     207,106     6.2     208,213     6.1  
Money market   1,004,174     29.0     1,041,954     30.7     1,085,433     31.9     1,016,453     30.3     1,089,699     31.9  
Savings   85,119     2.5     88,878     2.6     96,221     2.8     100,748     3.0     107,076     3.1  
Certificates and other time
   deposits
  1,266,457     36.7     1,262,332     37.2     1,340,410     39.3     1,352,459     40.2     1,305,670     38.2  
Total deposits   $ 3,453,727     100.0 %   $ 3,397,143     100.0 %   $ 3,408,253     100.0 %   $ 3,360,422     100.0 %   $ 3,416,138     100.0 %
                                         
Loan to Deposit Ratio   90.8 %       93.9 %       90.1 %       92.9 %       88.2 %    
                                                   


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

Asset Quality

     
    As of and for the Quarter Ended
    Mar 31,
2018
  Dec 31,
2017
  Sep 30,
2017
  Jun 30,
2017
  Mar 31,
2017
                     
    (Dollars in thousands)
Nonperforming Assets:                    
Nonaccrual loans   $ 55,565     $ 47,892     $ 43,656     $ 43,257     $ 59,338  
Accruing loans 90 or more days past due   5,412     375     4,828     2,651     5,500  
Restructured loans—nonaccrual   9,298     9,446     10,555     19,362     10,276  
Restructured loans—accrual   13,623     13,093     18,251     7,637     11,068  
Total nonperforming loans held for investment   83,898     70,806     77,290     72,907     86,182  
Nonperforming loans held for sale           14,552     1,700      
Real estate acquired through foreclosure   802     802     802     921     1,356  
Total nonperforming assets   $ 84,700     $ 71,608     $ 92,644     $ 75,528     $ 87,538  
                     
Charge-offs:                    
Commercial and industrial   $ (2,699 )   $ (6,447 )   $ (840 )   $ (466 )   $ (1,312 )
Owner occupied commercial real estate       (126 )       (961 )    
Construction, land & land development                   (95 )
Residential mortgage       (19 )            
Other consumer   (24 )   (112 )   (10 )   (126 )   (8 )
Total charge-offs   (2,723 )   (6,704 )   (850 )   (1,553 )   (1,415 )
                     
Recoveries:                    
Commercial and industrial   $ 8     $ 6     $ 12     $ 73     $ 585  
Owner occupied commercial real estate                   4  
Commercial real estate   2     1     4     3      
Construction, land & land development       2     1         74  
Residential mortgage   15     27     21     16     57  
Other consumer   48     3     1     6     122  
Total recoveries   73     39     39     98     842  
                     
Net (charge-offs) recoveries   $ (2,650 )   $ (6,665 )   $ (811 )   $ (1,455 )   $ (573 )
                     
Allowance for loan losses at end of period   $ 38,233     $ 31,220     $ 33,480     $ 31,991     $ 31,936  
                     
Asset Quality Ratios:                    
Nonperforming assets to total assets   2.00 %   1.68 %   2.23 %   1.80 %   2.15 %
Nonperforming loans to total loans held for investment   2.68     2.22     2.52     2.33     2.86  
Total classified assets to total regulatory capital   27.99     28.61     32.21     28.70     38.00  
Allowance for loan losses to total loans held for investment   1.22     0.98     1.09     1.02     1.06  
Net charge-offs (recoveries) to average loans outstanding   0.08     0.22     0.03     0.05     0.02  
                               


Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

We identify certain financial measures discussed in this release as being “non‑GAAP financial measures.” In accordance with the SEC’s rules, we classify a financial measure as being a non‑GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles as in effect from time to time in the United States in our statements of income, balance sheet or statements of cash flows. Non‑GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non‑GAAP financial measures or both.

The non‑GAAP financial measures that we discuss in this release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non‑GAAP financial measures that we discuss in this release may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non‑GAAP financial measures we have discussed in this release when comparing such non‑GAAP financial measures.

Tangible Book Value Per Common Share.  Tangible book value is a non‑GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as shareholders’ equity less goodwill and core deposit intangibles, net of accumulated amortization; and (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by shares of common stock outstanding. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is our book value.

We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

The following table reconciles, as of the dates set forth below, total shareholders’ equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share:

 
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands, except per share data)
Tangible Common Equity                    
Total shareholders’ equity   $ 468,878     $ 463,795     $ 462,311     $ 451,741     $ 437,288  
Adjustments:                    
Goodwill   85,291     85,291     85,291     85,291     85,291  
Core deposit intangibles   8,187     8,503     8,835     9,215     9,595  
Tangible common equity   $ 375,400     $ 370,001     $ 368,185     $ 357,235     $ 342,402  
Common shares outstanding(1)   37,163     37,103     37,096     37,035     37,015  
Book value per common share(1)   $ 12.62     $ 12.50     $ 12.46     $ 12.20     $ 11.81  
Tangible book value per common share(1)   $ 10.10     $ 9.97     $ 9.93     $ 9.65     $ 9.25  
                                         

(1)       Excludes the dilutive effect of common stock issuable upon exercise of outstanding stock options.  The number of exercisable options outstanding was 627,059 as of Mar 31, 2018; 754,110 as of Dec 31, 2017; 467,257 as of Sep 30, 2017; 465,281 as of Jun 30, 2017; and 472,653 as of Mar 31, 2017.

Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

Tangible Common Equity to Tangible Assets.  Tangible common equity to tangible assets is a non‑GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as shareholders’ equity less goodwill and core deposit intangibles, net of accumulated amortization; (b) tangible assets as total assets less goodwill and core deposit intangibles, net of accumulated amortization; and (c) tangible common equity to tangible assets as tangible common equity (as described in clause (a)) divided by tangible assets (as described in clause (b)). For common equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity to total assets.

We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total shareholders’ equity and assets while not increasing our tangible common equity or tangible assets.

The following table reconciles, as of the dates set forth below, total shareholders’ equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets:

 
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Tangible Common Equity                    
Total shareholders’ equity   $ 468,878     $ 463,795     $ 462,311     $ 451,741     $ 437,288  
Adjustments:                    
Goodwill   85,291     85,291     85,291     85,291     85,291  
Core deposit intangibles   8,187     8,503     8,835     9,215     9,595  
Tangible common equity   $ 375,400     $ 370,001     $ 368,185     $ 357,235     $ 342,402  
Tangible Assets                    
Total assets   $ 4,225,247     $ 4,261,916     $ 4,160,925     $ 4,185,697     $ 4,072,000  
Adjustments:                    
Goodwill   85,291     85,291     85,291     85,291     85,291  
Core deposit intangibles   8,187     8,503     8,835     9,215     9,595  
Tangible assets   $ 4,131,769     $ 4,168,122     $ 4,066,799     $ 4,091,191     $ 3,977,114  
Tangible Common Equity to Tangible Assets   9.09 %   8.88 %   9.05 %   8.73 %   8.61 %
                               


Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

Return on Average Tangible Common Equity.  Return on average tangible common equity is a non‑GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) average tangible common equity as average shareholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization; (b) net income less the effect of intangible assets as net income plus amortization of core deposit intangibles, net of taxes; and (c) return (as described in clause (a)) divided by average tangible common equity (as described in clause (b)). For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.

We believe that this measure is important to many investors in the marketplace who are interested in the return on common equity, exclusive of the impact of intangible assets.  Goodwill and other intangible assets, including core deposit intangibles, have the effect of increasing total shareholders’ equity, while not increasing our tangible common equity.  This measure is particularly relevant to acquisitive institutions who may have higher balances in goodwill and other intangible assets than non-acquisitive institutions.

The following table reconciles, as of the dates set forth below, average tangible common equity to average common equity and net income excluding amortization of core deposit intangibles, net of tax to net income and presents our return on average tangible common equity:

     
    As of and for the Quarter Ended
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Net income adjusted for amortization of core deposit
   intangibles
                   
Net income   $ 9,362     $ 2,619     $ 11,407     $ 12,898     $ 7,212  
Adjustments:                    
Plus: Amortization of core deposit intangibles   316     330     380     380     380  
Less: Tax benefit at the statutory rate   66     116     133     133     133  
Net income (loss) adjusted for amortization of core
   deposit intangibles
  $ 9,612     $ 2,833     $ 11,654     $ 13,145     $ 7,459  
                     
Average Tangible Common Equity                    
Total average shareholders’ equity   $ 466,015     $ 465,859     $ 457,303     $ 445,334     $ 435,695  
Adjustments:                    
Average goodwill   85,291     85,291     85,291     85,291     85,291  
Average core deposit intangibles   8,343     8,661     9,065     9,461     9,844  
Average tangible common equity   $ 372,381     $ 371,907     $ 362,947     $ 350,582     $ 340,560  
Return on Average Tangible Common Equity
   (Annualized)
  10.47 %   3.02 %   12.74 %   15.04 %   8.88 %
                               



Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

Allowance for Loan Losses less Allowance for Loan Losses on Acquired Loans to Total Loans Held for Investment excluding Acquired Loans.  The allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans is a non‑GAAP measure used by management to evaluate the Company’s financial condition.  Due to the application of purchase accounting, we use this non-GAAP ratio that excludes that impact of these items to evaluate our allowance for loan losses to total loans held for investment.  We calculate: (a) total allowance for loan losses less allowance for loan losses on acquired loans as allowance for loan losses less the allowance for loan losses on acquired loans; (b) total loans held for investment excluding acquired loans as total loans held for investment less the carrying value of acquired loans accounted for under ASC topics 310-20 and 310-30; and (c) allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans as the allowance for loan losses less allowance for loan losses on acquired loans (as calculated in clause (a)) divided by total loans held for investment excluding acquired loans (as calculated in clause (b)).  For allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans, the most directly comparable financial measure calculated in accordance with GAAP is allowance for loan losses to total loans held for investment.

We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in the allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans.  The acquired loans may have a premium or discount associated with them that includes a potential credit loss component with similar characteristics to the allowance for loan losses.  This measure reports the allowance for loan loss coverage to only those loans not accounted for pursuant to ASC topics 310-20 and 310-30 which may assist the investor in evaluating the allowance coverage of loans excluding acquired loans.

The following table reconciles, as of the dates set forth below, allowance for loan losses less allowance for loan losses on acquired loans to total loans held for investment excluding acquired loans:

 
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Allowance for loan losses less allowance for
   loan losses on acquired loans
                   
Allowance for loan losses   $ 38,233     $ 31,220     $ 33,480     $ 31,991     $ 31,936  
Less: Allowance for loan losses on acquired loans   1,698     1,242     1,326     1,462     2,825  
Total allowance for loan losses less allowance for
   loan losses on acquired loans
  $ 36,535     $ 29,978     $ 32,154     $ 30,529     $ 29,111  
                     
Total loans held for investment excluding acquired
loans
                   
Total loans held for investment   $ 3,136,336     $ 3,190,485     $ 3,071,761     $ 3,123,355     $ 3,012,275  
Less: Carrying value of acquired loans accounted for
   under ASC Topics 310-20 and 310-30
  451,609     513,994     586,522     646,601     730,064  
Total loans held for investment excluding acquired
loans
  $ 2,684,727     $ 2,676,491     $ 2,485,239     $ 2,476,754     $ 2,282,211  
Allowance for loan losses less allowance for loan
   losses on acquired loans to total loans held for
   investment excluding acquired loans
  1.36 %   1.12 %   1.29 %   1.23 %   1.28 %
                               


Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

Allowance for Loan Losses plus Acquired Loan Net Discount to Total Loans Held for Investment adjusted for Acquired Loan Net Discount.  Allowance for loan losses plus acquired loan net discount to total loans held of investment adjusted for acquired loan net discount is a non‑GAAP measure used by management to evaluate the Company’s financial condition. We calculate: (a) allowance for loan losses plus acquired loan net discount as allowance for loan losses plus acquired loan net discount, net of accumulated amortization; (b) total loans held for investment adjusted for acquired loan net discount as total loans held for investment plus acquired loan net discount, net of accumulated amortization; and (c) allowance for loan losses plus acquired loan net discount to total loans held for investment adjusted for acquired loan net discount as allowance for loan losses plus acquired loan net discount (as calculated in clause (a)) divided by total loans held for investment adjusted for acquired loan net discount (as calculated in clause (b)).  For allowance for loan losses to total loans excluding acquired loans, the most directly comparable financial measure calculated in accordance with GAAP is allowance for loan losses to total loans.

We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in the allowance for loan losses plus the acquired loan net discount to total loans held for investment adjusted for the acquired loan net discount.  This measure reports the combined allowance for loan loss and acquired loan net discount (or premium) as a percentage of loans held for investment inclusive of the acquired loan net discount (or premium) which may assist the investor in evaluating allowance coverage on loans inclusive of additional discount or premium resulting from purchase accounting adjustments.

The following table reconciles, as of the dates set forth below, allowance for loan losses plus acquired loans net discount to total loans adjusted for acquired loan net discount:

 
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Allowance for loan losses plus acquired loan net
   discount
                   
Allowance for loan losses at end of period   $ 38,233     $ 31,220     $ 33,480     $ 31,991     $ 31,936  
Plus: Net discount on acquired loans   3,495     4,371     5,112     6,240     7,314  
Total allowance plus acquired loan net discount   $ 41,728     $ 35,591     $ 38,592     $ 38,231     $ 39,250  
                     
Total loans held for investment adjusted for acquired
   loan net discount
                   
Total loans held for investment   $ 3,136,336     $ 3,190,485     $ 3,071,761     $ 3,123,355     $ 3,012,275  
Plus: Net discount on acquired loans   3,495     4,371     5,112     6,240     7,314  
Total loans held for investment adjusted for
   acquired loan net discount
  $ 3,139,831     $ 3,194,856     $ 3,076,873     $ 3,129,595     $ 3,019,589  
Allowance for loan losses plus acquired loan net
   discount loans to total loans held for investment
   adjusted for acquired loan net discount
  1.33 %   1.11 %   1.25 %   1.22 %   1.30 %
                               


Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio.  Operating earnings and pre-tax, pre-provision operating earnings are non GAAP measures used by management to evaluate the Company’s financial performance.  We calculate (a) operating earnings as net income (loss) plus loss (gain) on sale of securities available-for-sale, net, plus loss (gain) on held for sale loans, net, plus stock based compensation expense for performance option vesting, plus shelf and secondary offering expenses.  We calculate (b) pre-tax, pre-provision operating earnings as (a) operating earnings plus provision (benefit) for income taxes, plus provision for loan losses.

We believe that these measures and the operating metrics calculated utilizing these measures are important to management and many investors in the marketplace who are interested in understanding the ongoing operating performance of the company and provide meaningful comparisons to its peers.

The following tables reconcile, as of the dates set forth below, operating earnings and pre-tax, pre-provision operating earnings and related metrics:

Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

     
    As of and for the Quarter Ended
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
                     
    (Dollars in thousands)
Operating Earnings                    
Net Income (loss)   $ 9,362     $ 2,619     $ 11,407     $ 12,898     $ 7,212  
Plus: Loss (gain) on sale of securities available-for-
   sale, net
          332     (294 )    
Plus: Loss (gain) on held for sale loans, net       1,098     1,294     (222 )   138  
Plus: Stock based compensation expense for
   performance option vesting
      3,051              
Plus: Shelf and secondary offering expenses   397                  
Less: Tax benefit at the statutory rate   83     1,452     $ 569     (181 )   48  
Net operating earnings   $ 9,676     $ 5,316     $ 12,464     $ 12,563     $ 7,302  
                     
Weighted average diluted shares outstanding   37,586     37,393     37,332     37,264     37,238  
Diluted earnings per share   $ 0.25     $ 0.07     $ 0.31     $ 0.35     $ 0.19  
Diluted operating earnings per share   0.26     0.14     0.33     0.34     0.20  
                     
Pre-Tax, Pre-Provision Operating Earnings                    
Net Income (loss)   $ 9,362     $ 2,619     $ 11,407     $ 12,898     $ 7,212  
Plus: Provision (benefit) for income taxes   2,322     10,142     5,895     6,985     3,942  
Plus: Provision for loan losses   9,663     4,405     2,300     1,510     6,145  
Plus: Loss (gain) on sale of securities available-for-
   sale, net
          332     (294 )    
Plus: Loss (gain) on held for sale loans, net       1,098     1,294     (222 )   138  
Plus: Stock based compensation expense for
   performance option vesting
      3,051              
Plus: Shelf and secondary offering expenses   397                  
Net pre-tax, pre-provision operating earnings   $ 21,744     $ 21,315     $ 21,228     $ 20,877     $ 17,437  
                     
Total average assets   $ 4,204,200     $ 4,204,105     $ 4,131,706     $ 4,096,386     $ 4,016,744  
Pre-tax, pre-provision operating return on average
   assets (annualized)
  2.10 %   2.01 %   2.04 %   2.04 %   1.76 %
                               


Green Bancorp, Inc.
Notes to Financial Highlights
(Unaudited)

     
    As of and for the Quarter Ended
    Mar 31, 2018   Dec 31, 2017   Sep 30, 2017   Jun 30, 2017   Mar 31, 2017
     
    (Dollars in thousands)
     
Average Total Assets   $ 4,204,200     $ 4,204,105     $ 4,131,706     $ 4,096,386     $ 4,016,744  
Return on average assets   0.90 %   0.25 %   1.10 %   1.26 %   0.73 %
Operating return on average assets (annualized)   0.93 %   0.50 %   1.20 %   1.23 %   0.74 %
                     
Operating earnings adjusted for amortization of core
   deposit intangibles
                   
Operating earnings   $ 9,676     $ 5,316     $ 12,464     $ 12,563     $ 7,302  
Adjustments:                    
Plus: Amortization of core deposit intangibles   316     330     380     380     380  
Less: Tax benefit at the statutory rate   66     116     133     133     133  
Operating earnings adjusted for amortization of core
   deposit intangibles
  $ 9,926     $ 5,530     $ 12,711     $ 12,810     $ 7,549  
                     
Average Tangible Common Equity                    
Total average shareholders’ equity   $ 466,015     $ 465,859     $ 457,303     $ 445,334     $ 435,695  
Adjustments:                    
Average goodwill   85,291     85,291     85,291     85,291     85,291  
Average core deposit intangibles   8,343     8,661     9,065     9,461     9,844  
Average tangible common equity   $ 372,381     $ 371,907     $ 362,947     $ 350,582     $ 340,560  
Operating return on average tangible common
   equity (Annualized), operating earnings
  10.81 %   5.90 %   13.89 %   14.66 %   8.99 %
                     
Efficiency ratio   50.81 %   57.87 %   50.59 %   47.83 %   54.64 %
Operating efficiency ratio   49.90 %   47.69 %   46.49 %   49.09 %   54.28 %
                               

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Source: Green Bancorp, Inc.