GNBC-Current_Form_8K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8-K


CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): July  27, 2017


Green Bancorp, Inc.

(Exact name of registrant as specified in its charter)


 

 

 

 

 

 

 

 

 

 

TEXAS

(State or other jurisdiction
of incorporation)

001-36580

(Commission File Number)

42-1631980

(I.R.S. Employer
Identification No.)

 

4000 Greenbriar

Houston, Texas 77098

(Address of principal executive offices, including zip code)

(713) 275 - 8220

(Registrant’s telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

 

 

Item 2.02. Result of Operations and Financial Condition

On July 27, 2017, Green Bancorp, Inc. publicly disseminated a press release announcing its financial results as of and for the second quarter and six months ended June 30, 2017.  A copy of the press release and the related presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, hereto and incorporated herein by reference.

The press release includes certain non−GAAP (generally accepted accounting principles) financial measures that Green Bancorp, Inc.’s management uses to evaluate its performance. Specifically, the release includes 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 excluding acquired loans, allowance for loan losses plus acquired loans net discount to total loans adjusted for acquired loan net discount, and pre-tax, pre-provision return on average assets.   The earnings release furnished as Exhibit 99.1 hereto includes a reconciliation the non-GAAP measures to the most directly comparable GAAP financial measure.

The information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of the Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.  Financial Statements and Exhibits 

 

(d) Exhibits.  The following is furnished as an exhibit to this Current Report on Form 8-K:

 

 

 

Exhibit
Number

Description of Exhibit

99.1

Press Release issued by Green Bancorp, Inc. dated July  27, 2017.

99.2

Second Quarter 2017 Earnings Presentation dated July 27, 2017.


 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Green Bancorp, Inc.

 

 

 

 

Date: July 27, 2017

/s/ Terry S. Earley

 

Terry S. Earley

 

Executive Vice President and Chief Financial Officer

 

 

 


 

 

 

EXHIBIT INDEX

 

 

 

Exhibit
Number

Description of Exhibit

99.1

Press Release issued by Green Bancorp, Inc. dated July 27, 2017.

99.2

Second Quarter 2017 Earnings Presentation dated July 27, 2017.

 


GNBC-Current_Earnings_Release_new

 

Green Bancorp logo

Media Contact:

Mike Barone

713-275-8243

mbarone@greenbank.com 

 

Investor Relations:

713-275-8220
investors@greenbank.com

PRESS RELEASE

FOR IMMEDIATE RELEASE

 

Green Bancorp, Inc. Reports Second Quarter 2017 Financial Results 

2017 Second Quarter Highlights (GAAP)

·

Second quarter 2017 net income totaled $12.9 million, or $0.35 per diluted common share

·

Return (annualized) on average assets was 1.26% for Q2 2017, an increase from 0.73% in Q1 2017

·

Efficiency ratio of 47.83% for Q2 2017, from 54.64% for Q1 2017

·

Total loans held for investment increased $111.1 million, 14.8% annualized from Q1 2017

·

Net interest margin increased to 3.63% for Q2 2017, from 3.47% in Q1 2017

·

Nonperforming assets were reduced by $12.0 million, or 13.7%, during Q2 2017

 

2017 Second Quarter Highlights (Non-GAAP)

·

Pre-tax pre-provision return on average assets was 2.09% for Q2 2017, an increase from 1.75% in Q1 2017

·

Return (annualized) on average tangible common equity was 15.04% for Q2 2017, an increase from 8.88% in Q1 2017

·

Tangible book value per common share increased to $9.65

Houston, TX – July  27, 2017– 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 second quarter and six months ended June 30, 2017.  The Company reported net income for the quarter of $12.9 million, or $0.35 per diluted common share. 

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, “We delivered record second quarter results driven by strong loan growth, significant margin expansion, continued improvement in credit and effective expense control. These strong results clearly highlight the Bank’s attractive markets and asset generation potential, efficient branch system, and asset sensitivity now that our energy exposure has largely been removed from our balance sheet. Looking forward, the outlook for the Bank remains promising, as we believe that we have the opportunity to sustain and further improve our financial performance as our markets remain healthy and our infrastructure has ample capacity to scale further.”

 

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank, commented, “I am pleased with the significant progress that we have achieved as well as the outlook for the balance of 2017. Over the first six months of the year, our results have been in line with our expectations with deposits and loans essentially flat as we completed our energy disposition strategy and made solid progress reducing our Commercial Real Estate exposure. As


 

 

we look forward, the Company is now poised to achieve more normalized and sustainable growth and we remain confident in our outlook for 6-8% annualized loan growth over the remainder of 2017 and on into 2018.”

Results of Operations - Quarter Ended June 30, 2017 compared with Quarter Ended March 31, 2017

Net income for the quarter ended June 30, 2017 was $12.9 million, an increase of $5.7 million, or 78.8%, compared with $7.2 million for the quarter ended March 31, 2017. Net income per diluted common share was $0.35 for the quarter ended June 30, 2017, compared with $0.19 for the quarter ended March 31, 2017. Returns on average assets and average common equity, each on an annualized basis, for the three months ended June 30, 2017 were 1.26% and 11.62%, respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 47.83% for the three months ended June 30, 2017.  The Company recorded a provision for loan losses of $1.5 million, primarily related to the energy portfolio.

Net interest income before provision for loan losses for the quarter ended June 30, 2017 increased 8.2% or $2.7 million, to $35.3 million, compared with $32.6 million for the quarter ended March 31, 2017.  The increase in net interest income was primarily due to an increase of $2.1 million, or 5.8%, in interest earned on loans due to a $37.5 million, or 1.2%,  increase in the average loan balance along with a 16 basis point increase in the average loan yield and an increase of $1.3 million, or 52.1%, in interest earned on securities due to a $107.0 million, or 18.7%, increase in the average securities balance and a 49 basis point increase in the average securities yield, offset by the increases of $277 thousand in interest expense on other borrowed funds due to an increase in short-term advances during the current quarter, $252 thousand in interest expense on interest bearing demand and savings, and $179 thousand in interest expense on certificates and other time deposits.   The net interest margin for the quarter ended June 30, 2017 of 3.63% increased from 3.47% for the quarter ended March 31, 2017.  The improvement in net interest margin was due to the factors discussed above.

Noninterest income for the quarter ended June 30, 2017 was $5.7 million,  an increase of $204 thousand, or 3.7%, from $5.5 million for the quarter ended March 31, 2017.  The increase was primarily due to a $376 thousand increase in derivative income, a $360 thousand increase in net gain on sale of held for sale loans, a $294 thousand increase in gain on sale of available for sale securities and a $272 thousand increase in loan fees, offset by a $1.0 million decrease in gain on sale of guaranteed portion of loans due to timing of loan sales.

Noninterest expense for the quarter ended June 30, 2017 was $19.6 million, a decrease of $1.2 million, or 5.9%, from $20.8 million for the quarter ended March 31, 2017.  The decrease was primarily due to a $724 thousand decrease in provision for credit losses for off-balance sheet commitments, and a $498 thousand decrease in professional and regulatory fees. 

Loans held for investment at June 30, 2017 were $3.1 billion, an increase of $111.1 million, or 3.7%,  when compared with March 31, 2017.  The increase is primarily due to a $131.4 million increase in commercial and industrial loans, of which $56.2 million was related to mortgage warehouse loans, and a $9.8 million increase in consumer and other loans, offset by a $28.1 million reduction in commercial real estate loans.    During the second quarter of 2017, the Company resolved $6.5 million in energy-related loans, which included $1.0 million in loans held for sale.  At June 30, 2017, energy loans totaled $70.9 million, or 2.3% of total loans, excluding loans held for sale.

Loans held for sale at June 30, 2017 were $18.0 million, an increase of $680 thousand, or 3.9%, compared with $17.4 million at March 31, 2017.  The loans held for sale include $16.3 million in energy loans.

During the quarter ended June 30, 2017, securities increased $129.3 million, or 21.9%,  due to the purchase of $430.7 million less sales of $278.9 million in securities, which utilized excess cash. 

Deposits at June 30, 2017 decreased $55.7 million, or 1.6%, compared with March 31, 2017, comprised of decreases of $80.7 million in interest-bearing transaction and savings deposits and $21.8 million in noninterest-bearing deposits, offset by a $46.8 million increase in time deposits.  Average deposits increased $11.6 million, or 0.3%, for the quarter ended June 30, 2017, compared with the prior quarter.

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Asset Quality - Quarter Ended June 30, 2017 compared with Quarter Ended March 31, 2017

Nonperforming assets totaled $75.5 million, or 1.80% of period end total assets, at June 30, 2017, a decrease of $12.0 million compared to $87.5 million, or 2.15% of period end total assets, at March 31, 2017, primarily due to the resolution of nonperforming loans.  Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $7.6 million at June 30, 2017, compared with $11.1 million at March 31, 2017.  Real estate acquired through foreclosure totaled $921 thousand at June 30, 2017, a decrease of $435 thousand, or 32.1%, compared with March 31, 2017.

The allowance for loan losses was 1.02% of total loans at June 30, 2017, compared with 1.06% of total loans at March 31, 2017.  At June 30, 2017, the Company’s allowance for loans losses to total loans, excluding acquired loans that are accounted for under ASC 310-20 and ASC 310-30 and their related allowance,  was 1.23%.  Further, the allowance for loan losses plus acquired loan net discount to total loans adjusted for acquired loan net discount was 1.22% as of June 30, 2017.

The Company recorded a provision for loan losses of $1.5 million for the quarter ended June 30, 2017 down from the $6.1 million provision for the loan losses recorded for the quarter ended March 31, 2017.  The second quarter of 2017 provision included  $1.5 million in reserves related to energy loans, as compared to the first quarter of 2017, which included $6.0 million in reserves related to energy loans. 

Net charge-offs were $1.5 million, or 0.05% of total loans, for the quarter ended June 30, 2017, compared with net charge-offs of $573 thousand, or 0.02% of total loans, for the quarter ended March 31, 2017.

Results of Operations – Six Months Ended June 30, 2017 compared with Six Months Ended June 30, 2016

Net income for the six months ended June 30, 2017 was $20.1 million, compared with net income of $5.5 million for the six months ended June 30, 2016. Net income per diluted common share was $0.54 for the six months ended June 30, 2017, compared with net income per diluted common share of $0.15 for the six months ended June 30, 2016.  The Company recorded a provision for loan losses of $7.7 million, which included  $7.5 million in reserves on the energy portfolio.  The provision decreased $19.3 million from the same period in 2016.    Net charge-offs were $2.0 million for the six months ended June 30, 2017, compared with net charge-offs of $12.5 million for the six months ended June 30, 2016.

Net interest income before provision for loan losses for the six months ended June 30, 2017 was $67.9 million, an increase of $179 thousand, or 0.3%, compared with $67.8 million during the six months ended June 30, 2016.  The net interest margin for the six months ended June 30, 2017 of 3.55%, compared with 3.81% for the six months ended June 30, 2016.  

Noninterest income for the six months ended June 30, 2017 was $11.2 million, an increase of $3.3 million, or 41.0%, compared with $7.9 million for the six months ended June 30, 2016.  This increase was primarily due to a  $1.6 million increase in customer service fees, an $809 thousand increase in gain on sale of guaranteed portion of loans and a $522 thousand increase in loan fees.    

Noninterest expense for the six months ended June 30, 2017 was $40.5 million, an increase of $288 thousand, or 0.7%, compared with $40.2 million for the six months ended June 30, 2016. 

Loans held for investment at June 30, 2017 were $3.1 billion, a decrease of $66.1 million, or 2.1%, compared with $3.2 billion at June 30, 2016,  primarily due to the resolution of energy and nonperforming loans offset by new loan production.        Average loans held for investment decreased $121.7 million, or 3.9%, to $3.0 billion for the six months ended June 30, 2017, compared with $3.2 billion for the same period in 2016.    

Deposits at June 30, 2017 were $3.4 billion, an increase of $153.2 million, or 4.8%, compared with June 30, 2016, primarily due to continued opportunities for our portfolio bankers to generate deposit growth within our target markets.  Average deposits increased 8.5%, or $262.6 million, to $3.4 billion for the six months ended June 30, 2017, compared with the

3

 


 

 

same period of 2016. Average noninterest-bearing deposits for the six months ended June 30, 2017 were $668.4 million, an increase of $65.8 million, or 10.9%, compared with the same period in 2016.

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 excluding acquired loans, allowance for loan losses plus acquired loans net discount to total loans adjusted for acquired loan net discount, and pre-tax, pre-provision return on average assets.  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, July  27, 2017, to discuss its second quarter 2017 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 Second Quarter 2017 Earnings Conference Call.  A replay will be available starting at 8:00 p.m. (Eastern Time) on July 27, 2017 and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671.   The passcode for the replay is 13665540.  The replay will be available until 11:59 p.m. (Eastern Time) on August 3, 2017.

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,

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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: difficulties and delays in integrating the Green Bancorp and Patriot businesses or fully realizing cost savings and other benefits; business disruption following the merger; 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.

 

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Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

    

Jun 30, 2016

 

 

(Dollars in thousands)

Period End Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

134,995

 

$

255,581

 

$

389,007

 

$

313,366

 

$

199,950

Securities

 

 

718,750

 

 

589,468

 

 

310,124

 

 

318,289

 

 

237,029

Other investments

 

 

26,002

 

 

19,057

 

 

18,649

 

 

18,621

 

 

18,586

Loans held for sale

 

 

18,030

 

 

17,350

 

 

23,989

 

 

38,934

 

 

6,253

Loans held for investment

 

 

3,123,355

 

 

3,012,275

 

 

3,098,220

 

 

3,047,618

 

 

3,189,436

Allowance for loan losses

 

 

(31,991)

 

 

(31,936)

 

 

(26,364)

 

 

(35,911)

 

 

(47,420)

Goodwill

 

 

85,291

 

 

85,291

 

 

85,291

 

 

85,291

 

 

85,291

Core deposit intangibles, net

 

 

9,215

 

 

9,595

 

 

9,975

 

 

10,356

 

 

10,758

Real estate acquired through foreclosure

 

 

921

 

 

1,356

 

 

5,220

 

 

2,801

 

 

6,216

Premises and equipment, net

 

 

30,108

 

 

30,604

 

 

25,674

 

 

26,164

 

 

26,706

Other assets

 

 

71,021

 

 

83,359

 

 

85,037

 

 

104,307

 

 

94,642

Total assets

 

$

4,185,697

 

$

4,072,000

 

$

4,024,822

 

$

3,929,836

 

$

3,827,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

683,656

 

$

705,480

 

$

650,064

 

$

618,408

 

$

583,347

Interest-bearing transaction and savings deposits

 

 

1,324,307

 

 

1,404,988

 

 

1,359,187

 

 

1,304,547

 

 

1,208,960

Certificates and other time deposits

 

 

1,352,459

 

 

1,305,670

 

 

1,365,449

 

 

1,392,944

 

 

1,414,954

Total deposits

 

 

3,360,422

 

 

3,416,138

 

 

3,374,700

 

 

3,315,899

 

 

3,207,261

Securities sold under agreements to repurchase

 

 

5,221

 

 

4,316

 

 

3,493

 

 

2,855

 

 

3,227

Other borrowed funds

 

 

305,000

 

 

150,000

 

 

150,000

 

 

150,000

 

 

150,000

Subordinated debentures and subordinated notes

 

 

47,454

 

 

47,304

 

 

47,492

 

 

13,502

 

 

13,397

Other liabilities

 

 

15,859

 

 

16,954

 

 

18,655

 

 

21,365

 

 

18,621

Total liabilities

 

 

3,733,956

 

 

3,634,712

 

 

3,594,340

 

 

3,503,621

 

 

3,392,506

Shareholders' equity

 

 

451,741

 

 

437,288

 

 

430,482

 

 

426,215

 

 

434,941

Total liabilities and equity

 

$

4,185,697

 

$

4,072,000

 

$

4,024,822

 

$

3,929,836

 

$

3,827,447

 

 

 

 

 

 

 

6

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

For the
 Six Months Ended

 

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

    

Jun 30, 2016

    

Jun 30, 2017

    

Jun 30, 2016

 

 

(Dollars in thousands)

 

 

 

 

 

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

38,476

 

$

36,371

 

$

36,469

 

$

37,897

 

$

37,711

 

$

74,847

 

$

75,056

Securities

 

 

3,928

 

 

2,583

 

 

1,151

 

 

989

 

 

988

 

 

6,511

 

 

2,069

Other investments

 

 

197

 

 

188

 

 

184

 

 

199

 

 

205

 

 

385

 

 

378

Federal funds sold

 

 

 -

 

 

 1

 

 

 -

 

 

 1

 

 

 1

 

 

 1

 

 

 2

Deposits in financial institutions

 

 

331

 

 

408

 

 

522

 

 

346

 

 

157

 

 

739

 

 

281

Total interest income

 

 

42,932

 

 

39,551

 

 

38,326

 

 

39,432

 

 

39,062

 

 

82,483

 

 

77,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction and savings deposits

 

 

2,230

 

 

1,978

 

 

1,750

 

 

1,537

 

 

1,312

 

 

4,208

 

 

2,462

Certificates and other time deposits

 

 

3,786

 

 

3,607

 

 

3,766

 

 

3,791

 

 

3,702

 

 

7,393

 

 

6,465

Subordinated debentures and subordinated notes

 

 

1,051

 

 

1,041

 

 

456

 

 

246

 

 

243

 

 

2,092

 

 

480

Other borrowed funds

 

 

560

 

 

282

 

 

170

 

 

183

 

 

264

 

 

842

 

 

610

Total interest expense

 

 

7,627

 

 

6,908

 

 

6,142

 

 

5,757

 

 

5,521

 

 

14,535

 

 

10,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

35,305

 

 

32,643

 

 

32,184

 

 

33,675

 

 

33,541

 

 

67,948

 

 

67,769

Provision for loan losses

 

 

1,510

 

 

6,145

 

 

9,500

 

 

28,200

 

 

11,000

 

 

7,655

 

 

27,000

Net interest income after provision for loan losses

 

 

33,795

 

 

26,498

 

 

22,684

 

 

5,475

 

 

22,541

 

 

60,293

 

 

40,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

2,199

 

 

2,266

 

 

1,755

 

 

1,523

 

 

1,447

 

 

4,465

 

 

2,851

Loan fees

 

 

1,106

 

 

834

 

 

750

 

 

806

 

 

719

 

 

1,940

 

 

1,418

Gain on sale of available-for-sale securities, net

 

 

294

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

294

 

 

 -

Gain (loss) on sale of held for sale loans, net

 

 

222

 

 

(138)

 

 

(1,445)

 

 

 -

 

 

 -

 

 

84

 

 

41

Gain on sale of guaranteed portion of loans, net

 

 

878

 

 

1,927

 

 

379

 

 

968

 

 

858

 

 

2,805

 

 

1,996

Other

 

 

1,000

 

 

606

 

 

729

 

 

794

 

 

758

 

 

1,606

 

 

1,631

Total noninterest income

 

 

5,699

 

 

5,495

 

 

2,168

 

 

4,091

 

 

3,782

 

 

11,194

 

 

7,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,653

 

 

12,406

 

 

11,804

 

 

11,925

 

 

11,461

 

 

25,059

 

 

23,440

Occupancy

 

 

2,048

 

 

1,997

 

 

2,060

 

 

2,194

 

 

2,035

 

 

4,045

 

 

4,065

Professional and regulatory fees

 

 

1,899

 

 

2,397

 

 

2,421

 

 

2,180

 

 

2,435

 

 

4,296

 

 

4,357

Data processing

 

 

995

 

 

908

 

 

1,023

 

 

921

 

 

945

 

 

1,903

 

 

1,915

Software license and maintenance

 

 

438

 

 

489

 

 

571

 

 

580

 

 

528

 

 

927

 

 

1,004

Marketing

 

 

163

 

 

199

 

 

232

 

 

283

 

 

301

 

 

362

 

 

599

Loan related

 

 

301

 

 

600

 

 

1,464

 

 

1,287

 

 

801

 

 

901

 

 

1,044

Real estate acquired by foreclosure, net

 

 

223

 

 

292

 

 

382

 

 

2,105

 

 

381

 

 

515

 

 

681

Other

 

 

891

 

 

1,551

 

 

996

 

 

1,908

 

 

1,788

 

 

2,442

 

 

3,057

Total noninterest expense

 

 

19,611

 

 

20,839

 

 

20,953

 

 

23,383

 

 

20,675

 

 

40,450

 

 

40,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

19,883

 

 

11,154

 

 

3,899

 

 

(13,817)

 

 

5,648

 

 

31,037

 

 

8,544

Provision (benefit) for income taxes

 

 

6,985

 

 

3,942

 

 

1,355

 

 

(4,831)

 

 

2,017

 

 

10,927

 

 

3,074

Net income (loss)

 

$

12,898

 

$

7,212

 

$

2,544

 

$

(8,986)

 

$

3,631

 

$

20,110

 

$

5,470

 

7

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and For the Quarter Ended

 

As of and For the

Six Months Ended

 

 

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

    

Jun 30, 2016

    

Jun 30, 2017

    

Jun 30, 2016

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

Per Share Data (Common Stock):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

 

$

0.35

 

$

0.19

 

$

0.07

 

$

(0.25)

 

$

0.10

 

$

0.54

 

$

0.15

 

Diluted earnings (loss) per share

 

 

0.35

 

 

0.19

 

 

0.07

 

 

(0.25)

 

 

0.10

 

 

0.54

 

 

0.15

 

Book value per common share

 

 

12.20

 

 

11.81

 

 

11.64

 

 

11.62

 

 

11.88

 

 

12.20

 

 

11.88

 

Tangible book value per common share (1)

 

 

9.65

 

 

9.25

 

 

9.06

 

 

9.01

 

 

9.25

 

 

9.65

 

 

9.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at period end

 

 

37,035

 

 

37,015

 

 

36,988

 

 

36,683

 

 

36,620

 

 

37,035

 

 

36,620

 

Weighted average basic shares outstanding for the period

 

 

37,023

 

 

36,990

 

 

36,731

 

 

36,657

 

 

36,613

 

 

37,007

 

 

36,660

 

Weighted average diluted shares outstanding for the period

 

 

37,264

 

 

37,238

 

 

36,937

 

 

36,657

 

 

36,613

 

 

37,234

 

 

36,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Performance Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(2)

 

 

1.26

%

 

0.73

%

 

0.25

%

 

(0.92)

%

 

0.38

%

 

1.00

%

 

0.29

%

Pre-tax, pre-provision return on average assets(1)(2)

 

 

2.09

 

 

1.75

 

 

1.34

 

 

1.47

 

 

1.76

 

 

1.92

 

 

1.89

 

Return on average equity(2)

 

 

11.62

 

 

6.71

 

 

2.37

 

 

(8.23)

 

 

3.35

 

 

9.21

 

 

2.53

 

Return on average tangible common equity(1)(2)

 

 

15.04

 

 

8.88

 

 

3.35

 

 

(10.25)

 

 

4.62

 

 

12.02

 

 

3.57

 

Efficiency ratio

 

 

47.83

 

 

54.64

 

 

60.99

 

 

61.92

 

 

55.39

 

 

51.11

 

 

53.05

 

Loans to deposits ratio

 

 

92.95

 

 

88.18

 

 

91.81

 

 

91.91

 

 

99.44

 

 

92.95

 

 

99.44

 

Noninterest expense to average assets(2)

 

 

1.92

 

 

2.10

 

 

2.10

 

 

2.39

 

 

2.19

 

 

2.01

 

 

2.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Bancorp Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity to average total assets

 

 

10.9

%

 

10.8

%

 

10.8

%

 

11.2

%

 

11.4

%

 

10.9

%

 

11.5

%

Tier 1 capital to average assets (leverage)

 

 

9.3

 

 

9.1

 

 

9.1

 

 

9.1

 

 

9.6

 

 

9.3

 

 

9.6

 

Common equity tier 1 capital

 

 

10.1

 

 

10.0

 

 

9.7

 

 

9.5

 

 

9.5

 

 

10.1

 

 

9.5

 

Tier 1 capital to risk-weighted assets

 

 

10.5

 

 

10.4

 

 

10.1

 

 

9.8

 

 

9.8

 

 

10.5

 

 

9.8

 

Total capital to risk-weighted assets

 

 

12.4

 

 

12.3

 

 

11.8

 

 

10.9

 

 

11.1

 

 

12.4

 

 

11.1

 

Tangible common equity to tangible assets (1)

 

 

8.7

 

 

8.6

 

 

8.5

 

 

8.6

 

 

9.1

 

 

8.7

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Bank Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets (leverage)

 

 

9.6

%

 

9.1

%

 

9.0

%

 

9.0

%

 

9.4

%

 

9.6

%

 

9.4

%

Common equity tier 1 capital

 

 

10.9

 

 

10.4

 

 

10.0

 

 

9.7

 

 

9.6

 

 

10.9

 

 

9.6

 

Tier 1 capital to risk-weighted assets

 

 

10.9

 

 

10.4

 

 

10.0

 

 

9.7

 

 

9.6

 

 

10.9

 

 

9.6

 

Total capital to risk-weighted assets

 

 

11.7

 

 

11.2

 

 

10.8

 

 

10.7

 

 

10.9

 

 

11.7

 

 

10.9

 

 


(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.

 

8

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

 

June 30, 2017

 

 

March 31, 2017

 

 

June 30, 2016

 

 

  

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: