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): October 25, 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 October 25, 2017, Green Bancorp, Inc. publicly disseminated a press release announcing its financial results as of and for the third quarter and nine months ended September 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 October 25, 2017.

99.2

Third Quarter 2017 Earnings Presentation dated October 25, 2017.

 

 


 

 

EXHIBIT INDEX

 

 

 

Exhibit
Number

Description of Exhibit

99.1

Press Release issued by Green Bancorp, Inc. dated October 25, 2017.

99.2

Third Quarter 2017 Earnings Presentation dated October 25, 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: October 25, 2017

/s/ Terry S. Earley

 

Terry S. Earley

 

Executive Vice President and Chief Financial Officer

 


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 Third Quarter 2017 Financial Results

2017 Third Quarter Highlights

·

Third quarter 2017 net income totaled $11.4 million, or $0.31 per diluted common share

·

Return (annualized) on average assets was 1.10% for Q3 2017

·

Efficiency ratio of 50.59% for Q3 2017

·

Net interest margin increased to 3.65% for Q3 2017, from 3.63% in Q2 2017

 

2017 Third Quarter Highlights (Non-GAAP)

·

Pre-tax pre-provision return on average assets was 1.88% for Q3 2017

·

Return (annualized) on average tangible common equity was 12.74% for Q3 2017

·

Tangible book value per common share increased to $9.93

Houston, TX – October 25, 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 third quarter and nine months ended September 30, 2017.  The Company reported net income for the quarter of $11.4 million, or $0.31 per diluted common share.

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, “I am pleased with our performance this quarter as we delivered solid financial metrics despite a challenging environment as Hurricane Harvey caused widespread flooding that devastated numerous local neighborhoods and proved to be a life changing event for many Houstonians.  Though the damage was extensive, it was largely confined to residential real estate and smaller, local businesses with the core of the Houston economy, and the foundation of the city, retaining its ability to recover quickly.  In fact, Houston is getting back to normal and we expect the local economy to improve as FEMA and insurance monies flow in and the process of rebuilding the areas that suffered damage gets underway.” 

 

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank, commented, “Loan growth declined in the third quarter due to three factors. First, Hurricane Harvey resulted in a sharp, temporary deceleration in business activity. Second, Harvey necessitated a detailed impact analysis of the borrowers in the affected areas. This effort took the remainder of the quarter and significantly impacted the Bank’s new loan production. Third, we successfully reduced our Commercial Real Estate exposure to under 300% of regulatory capital, which we achieved in August and ended the third quarter at 288%.  The challenge, however, was to restart our CRE lending business in the midst of Hurricane Harvey which proved slow.  Looking forward, we remain confident that the Bank will return to loan growth in the fourth quarter and reiterate our outlook for 7-9% loan growth in 2018.”


 

 

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

Net income for the quarter ended September 30, 2017 was $11.4 million, a decrease of $1.5 million, or 11.6%, compared with $12.9 million for the quarter ended June 30, 2017. Net income per diluted common share was $0.31 for the quarter ended September 30, 2017, compared with $0.35 for the quarter ended June 30, 2017. Returns on average assets and average common equity, each on an annualized basis, for the three months ended September 30, 2017 were 1.10% and 9.90%, respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 50.59% for the three months ended September 30, 2017.  The Company recorded a provision for loan losses of $2.3 million, which included $1.0 million in general reserves due to increases in qualitative factors and the loss migration component, $1.0 million in specific reserves and the remainder to acquired loans. 

Net interest income before provision for loan losses for the quarter ended September 30, 2017 increased 2.8% or $1.0 million, to $36.3 million, compared with $35.3 million for the quarter ended June 30, 2017.  The increase in net interest income was primarily due to an increase of $1.1 million, or 2.8%, in interest earned on loans due to a 9 basis point increase in the average yield and an increase of $409 thousand, or 10.4%, in interest earned on securities due to a $33.5 million, or 4.9%, increase in the average balance and a 10 basis point increase in the average yield, offset by the increases of $272 thousand in interest expense on interest bearing demand and savings due to a 8 basis point increase in the average rate, and $256 thousand in interest expense on certificates and other time deposits due to a $34.3 million increase in the average balance.   The net interest margin for the quarter ended September 30, 2017 of 3.65% increased from 3.63% for the quarter ended June 30, 2017.  

Noninterest income for the quarter ended September 30, 2017 was $3.4 million, a decrease of $2.3 million, or 40.5%, from $5.7 million for the quarter ended June 30, 2017.  The decrease was primarily due to a $1.5 million increase in net loss on held for sale loans, a $626 thousand increase in net loss on sale of available for sale securities and a $508 thousand decrease in derivative income, offset by a $424 thousand increase in gain on sale of guaranteed portion of loans.

Noninterest expense for the quarter ended September 30, 2017 was $20.1 million, an increase of $456 thousand, or 2.3%, from $19.6 million for the quarter ended June 30, 2017.  The increase was primarily due to a $432 thousand increase in professional and regulatory fees and small changes in other expense categories.

Loans held for investment at September 30, 2017 were $3.1 billion, a decrease of $51.6 million, or 1.7%, when compared with June 30, 2017.  The decrease is primarily due to a $40.5 million reduction in commercial real estate loans and a $8.1 million reduction in construction and land loans.  At September 30, 2017, energy loans totaled $70.8 million, or 2.3% of total loans, excluding loans held for sale.

Loans held for sale at September 30, 2017 were $17.7 million, a decrease of $357 thousand, or 2.0%, compared with $18.0 million at June 30, 2017.  The loans held for sale include $15.5 million in energy loans.

Deposits at September 30, 2017 were $3.4 billion, an increase of $47.8 million, or 1.4%, compared with June 30, 2017.  The net increase is comprised of an increase of $59.2 million in interest-bearing transaction and savings deposits, offset by a $12.0 million decrease in time deposits.  Average deposits increased $9.5 million, or 0.3%, for the quarter ended September 30, 2017, compared with the prior quarter.

Asset Quality - Quarter Ended September 30, 2017 compared with Quarter Ended June 30, 2017

Nonperforming assets totaled $92.6 million, or 2.23% of period end total assets, at September 30, 2017, an increase of $17.1 million compared to $75.5 million, or 1.80% of period end total assets, at June 30, 2017, primarily due to downgrades of $14.6 million in energy loans held for sale.  Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $18.3 million at September 30, 2017, compared with $7.6 million at June 30, 2017.  Real estate acquired through foreclosure totaled $802 thousand at September 30, 2017.

The allowance for loan losses was 1.09% of total loans at September 30, 2017, compared with 1.02% of total loans at June 30, 2017.  At September 30, 2017, the Company’s allowance for loans losses to total loans, excluding acquired loans

2

 


 

 

that are accounted for under ASC 310-20 and ASC 310-30 and their related allowance, was 1.29%.  Further, the allowance for loan losses plus acquired loan net discount to total loans adjusted for acquired loan net discount was 1.25% as of September 30, 2017.

The Company recorded a provision for loan losses of $2.3 million for the quarter ended September 30, 2017 up from the $1.5 million provision for the loan losses recorded for the quarter ended June 30, 2017.  The third quarter of 2017 provision included $1.0 million in general reserves for the potential impact from Hurricane Harvey and $1.0 million in specific reserves.

Net charge-offs were $811 thousand, or 0.03% of total loans, for the quarter ended September 30, 2017, compared with net charge-offs of $1.5 million, or 0.05% of total loans, for the quarter ended June 30, 2017.

Results of Operations – Nine Months Ended September 30, 2017 compared with Nine Months Ended September 30, 2016

Net income for the nine months ended September 30, 2017 was $31.5 million, compared with net loss of $3.5 million for the nine months ended September 30, 2016. Net income per diluted common share was $0.85 for the nine months ended September 30, 2017, compared with net loss per diluted common share of ($0.10) for the nine months ended September 30, 2016.  The Company recorded a provision for loan losses of $10.0 million, which included $7.3 million in reserves on the energy portfolio.  The provision for loan losses was $55.2 million for the same period in 2016, which included $42.2 million related to the energy portfolio.  Net charge-offs were $2.8 million for the nine months ended September 30, 2017, compared with net charge-offs of $52.2 million for the nine months ended September 30, 2016, which included $50.9 million of energy loans.

Net interest income before provision for loan losses for the nine months ended September 30, 2017 was $104.2 million, an increase of $2.8 million, or 2.7%, compared with $101.4 million during the nine months ended September 30, 2016.  The net interest margin for the nine months ended September 30, 2017 of 3.59%, compared with 3.74% for the nine months ended September 30, 2016.  

Noninterest income for the nine months ended September 30, 2017 was $14.6 million, an increase of $2.6 million, or 21.3%, compared with $12.0 million for the nine months ended September 30, 2016.  This increase was primarily due to a $2.5 million increase in customer service fees, a $1.1 million increase in gain on sale of guaranteed portion of loans and a $587 thousand increase in loan fees, offset by a $1.2 million net loss on loans held for sale. 

Noninterest expense for the nine months ended September 30, 2017 was $60.5 million, a decrease of $3.0 million, or 4.8%, compared with $63.5 million for the nine months ended September 30, 2016.  The decrease is primarily due to decreases of $2.1 million in real estate acquired by foreclosure and $1.2 million in loan related expenses and a $1.9 million favorable change in the reserve for unfunded commitments, offset by a $2.2 million increase in salaries and employee benefits.

Loans held for investment at September 30, 2017 were $3.1 billion, an increase of $24.1 million, or 0.8%, compared with $3.0 billion at September 30, 2016.  Average loans held for investment decreased $116.8 million, or 3.7%, to $3.0 billion for the nine months ended September 30, 2017, compared with $3.2 billion for the same period in 2016.  The resolution of energy and nonperforming loans during the period offset new loan production.

Deposits at September 30, 2017 were $3.4 billion, an increase of $92.4 million, or 2.8%, compared with September 30, 2016, primarily due to continued opportunities for our portfolio bankers to generate deposit growth within our target markets.  Average deposits increased $214.2 million, or 6.8%, to $3.4 billion for the nine months ended September 30, 2017, compared with the same period of 2016. Average noninterest-bearing deposits for the nine months ended September 30, 2017 were $672.3 million, an increase of $73.2 million, or 12.2%, compared with the same period in 2016.

3

 


 

 

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, October 25, 2017, to discuss its third 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 Third Quarter 2017 Earnings Conference Call.  A replay will be available starting at 8:00 p.m. (Eastern Time) on October 25, 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 13671475.  The replay will be available until 11:59 p.m. (Eastern Time) on November 1, 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, 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.

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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.

 

5

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Sep 30, 2017

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

 

 

(Dollars in thousands)

Period End Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

179,463

 

$

134,995

 

$

255,581

 

$

389,007

 

$

313,366

Securities

 

 

707,989

 

 

718,750

 

 

589,468

 

 

310,124

 

 

318,289

Other investments

 

 

22,443

 

 

26,002

 

 

19,057

 

 

18,649

 

 

18,621

Loans held for sale

 

 

17,673

 

 

18,030

 

 

17,350

 

 

23,989

 

 

38,934

Loans held for investment

 

 

3,071,761

 

 

3,123,355

 

 

3,012,275

 

 

3,098,220

 

 

3,047,618

Allowance for loan losses

 

 

(33,480)

 

 

(31,991)

 

 

(31,936)

 

 

(26,364)

 

 

(35,911)

Goodwill

 

 

85,291

 

 

85,291

 

 

85,291

 

 

85,291

 

 

85,291

Core deposit intangibles, net

 

 

8,835

 

 

9,215

 

 

9,595

 

 

9,975

 

 

10,356

Real estate acquired through foreclosure

 

 

802

 

 

921

 

 

1,356

 

 

5,220

 

 

2,801

Premises and equipment, net

 

 

29,733

 

 

30,108

 

 

30,604

 

 

25,674

 

 

26,164

Other assets

 

 

70,415

 

 

71,021

 

 

83,359

 

 

85,037

 

 

104,307

Total assets

 

$

4,160,925

 

$

4,185,697

 

$

4,072,000

 

$

4,024,822

 

$

3,929,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

684,329

 

$

683,656

 

$

705,480

 

$

650,064

 

$

618,408

Interest-bearing transaction and savings deposits

 

 

1,383,514

 

 

1,324,307

 

 

1,404,988

 

 

1,359,187

 

 

1,304,547

Certificates and other time deposits

 

 

1,340,410

 

 

1,352,459

 

 

1,305,670

 

 

1,365,449

 

 

1,392,944

Total deposits

 

 

3,408,253

 

 

3,360,422

 

 

3,416,138

 

 

3,374,700

 

 

3,315,899

Securities sold under agreements to repurchase

 

 

5,867

 

 

5,221

 

 

4,316

 

 

3,493

 

 

2,855

Other borrowed funds

 

 

215,000

 

 

305,000

 

 

150,000

 

 

150,000

 

 

150,000

Subordinated debentures and subordinated notes

 

 

47,596

 

 

47,454

 

 

47,304

 

 

47,492

 

 

13,502

Other liabilities

 

 

21,898

 

 

15,859

 

 

16,954

 

 

18,655

 

 

21,365

Total liabilities

 

 

3,698,614

 

 

3,733,956

 

 

3,634,712

 

 

3,594,340

 

 

3,503,621

Shareholders' equity

 

 

462,311

 

 

451,741

 

 

437,288

 

 

430,482

 

 

426,215

Total liabilities and equity

 

$

4,160,925

 

$

4,185,697

 

$

4,072,000

 

$

4,024,822

 

$

3,929,836

 

 

 

 

 

 

 

6

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

For the

Nine Months Ended

 

    

Sep 30, 2017

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

    

Sep 30, 2017

    

Sep 30, 2016

 

 

(Dollars in thousands)

 

 

 

 

 

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

39,549

 

$

38,476

 

$

36,371

 

$

36,469

 

$

37,897

 

$

114,396

 

$

112,953

Securities

 

 

4,337

 

 

3,928

 

 

2,583

 

 

1,151

 

 

989

 

 

10,848

 

 

3,058

Other investments

 

 

221

 

 

197

 

 

188

 

 

184

 

 

199

 

 

606

 

 

577

Deposits in financial institutions and fed funds sold

 

 

432

 

 

331

 

 

409

 

 

522

 

 

347

 

 

1,172

 

 

630

Total interest income

 

 

44,539

 

 

42,932

 

 

39,551

 

 

38,326

 

 

39,432

 

 

127,022

 

 

117,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction and savings deposits

 

 

2,502

 

 

2,230

 

 

1,978

 

 

1,750

 

 

1,537

 

 

6,710

 

 

3,999

Certificates and other time deposits

 

 

4,042

 

 

3,786

 

 

3,607

 

 

3,766

 

 

3,791

 

 

11,435

 

 

10,256

Subordinated debentures and subordinated notes

 

 

1,059

 

 

1,051

 

 

1,041

 

 

456

 

 

246

 

 

3,151

 

 

726

Other borrowed funds

 

 

657

 

 

560

 

 

282

 

 

170

 

 

183

 

 

1,499

 

 

793

Total interest expense

 

 

8,260

 

 

7,627

 

 

6,908

 

 

6,142

 

 

5,757

 

 

22,795

 

 

15,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

36,279

 

 

35,305

 

 

32,643

 

 

32,184

 

 

33,675

 

 

104,227

 

 

101,444

Provision for loan losses

 

 

2,300

 

 

1,510

 

 

6,145

 

 

9,500

 

 

28,200

 

 

9,955

 

 

55,200

Net interest income after provision for loan losses

 

 

33,979

 

 

33,795

 

 

26,498

 

 

22,684

 

 

5,475

 

 

94,272

 

 

46,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

2,365

 

 

2,199

 

 

2,266

 

 

1,755

 

 

1,523

 

 

6,830

 

 

4,374

Loan fees

 

 

871

 

 

1,106

 

 

834

 

 

750

 

 

806

 

 

2,811

 

 

2,224

(Loss) gain on sale of available-for-sale securities, net

 

 

(332)

 

 

294

 

 

 -

 

 

 -

 

 

 -

 

 

(38)

 

 

 -

(Loss) gain on held for sale loans, net

 

 

(1,294)

 

 

222

 

 

(138)

 

 

(1,445)

 

 

 -

 

 

(1,210)

 

 

41

Gain on sale of guaranteed portion of loans, net

 

 

1,302

 

 

878

 

 

1,927

 

 

379

 

 

968

 

 

4,107

 

 

2,964

Other

 

 

478

 

 

1,000

 

 

606

 

 

729

 

 

794

 

 

2,084

 

 

2,425

Total noninterest income

 

 

3,390

 

 

5,699

 

 

5,495

 

 

2,168

 

 

4,091

 

 

14,584

 

 

12,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,487

 

 

12,653

 

 

12,406

 

 

11,804

 

 

11,925

 

 

37,546

 

 

35,365

Occupancy

 

 

2,080

 

 

2,048

 

 

1,997

 

 

2,060

 

 

2,194

 

 

6,125

 

 

6,259

Professional and regulatory fees

 

 

2,331

 

 

1,899

 

 

2,397

 

 

2,421

 

 

2,180

 

 

6,627

 

 

6,537

Data processing

 

 

924

 

 

995

 

 

908

 

 

1,023

 

 

921

 

 

2,827

 

 

2,836

Software license and maintenance

 

 

464

 

 

438

 

 

489

 

 

571

 

 

580

 

 

1,391

 

 

1,584

Marketing

 

 

154

 

 

163

 

 

199

 

 

232

 

 

283

 

 

516

 

 

882

Loan related

 

 

271

 

 

301

 

 

600

 

 

1,464

 

 

1,287

 

 

1,172

 

 

2,331

Real estate acquired by foreclosure, net

 

 

159

 

 

223

 

 

292

 

 

382

 

 

2,105

 

 

674

 

 

2,786

Other

 

 

1,197

 

 

891

 

 

1,551

 

 

996

 

 

1,908

 

 

3,639

 

 

4,965

Total noninterest expense

 

 

20,067

 

 

19,611

 

 

20,839

 

 

20,953

 

 

23,383

 

 

60,517

 

 

63,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

17,302

 

 

19,883

 

 

11,154

 

 

3,899

 

 

(13,817)

 

 

48,339

 

 

(5,273)

Provision (benefit) for income taxes

 

 

5,895

 

 

6,985

 

 

3,942

 

 

1,355

 

 

(4,831)

 

 

16,822

 

 

(1,757)

Net income (loss)

 

$

11,407

 

$

12,898

 

$

7,212

 

$

2,544

 

$

(8,986)

 

$

31,517

 

$

(3,516)

 

7

 


 

Green Bancorp, Inc.

Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and For the Quarter Ended

 

As of and For the

Nine Months Ended

 

 

    

Sep 30, 2017

    

Jun 30, 2017

    

Mar 31, 2017

    

Dec 31, 2016

    

Sep 30, 2016

    

Sep 30, 2017

    

Sep 30, 2016

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

Per Share Data (Common Stock):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

 

$

0.31

 

$

0.35

 

$

0.19

 

$

0.07

 

$

(0.25)

 

$

0.85

 

$

(0.10)

 

Diluted earnings (loss) per share

 

 

0.31

 

 

0.35

 

 

0.19

 

 

0.07

 

 

(0.25)

 

 

0.85

 

 

(0.10)

 

Book value per common share

 

 

12.46

 

 

12.20

 

 

11.81

 

 

11.64

 

 

11.62

 

 

12.46

 

 

11.62

 

Tangible book value per common share (1)

 

 

9.93

 

 

9.65

 

 

9.25

 

 

9.06

 

 

9.01

 

 

9.93

 

 

9.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at period end

 

 

37,096

 

 

37,035

 

 

37,015

 

 

36,988

 

 

36,683

 

 

37,096

 

 

36,683

 

Weighted average basic shares outstanding for the period

 

 

37,056

 

 

37,023

 

 

36,990

 

 

36,731

 

 

36,657

 

 

37,023

 

 

36,659

 

Weighted average diluted shares outstanding for the period

 

 

37,332

 

 

37,264

 

 

37,238

 

 

36,937

 

 

36,657

 

 

37,273

 

 

36,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Performance Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(2)

 

 

1.10

%

 

1.26

%

 

0.73

%

 

0.25

%

 

(0.92)

%

 

1.03

%

 

(0.12)

%

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

 

 

1.88

 

 

2.09

 

 

1.75

 

 

1.34

 

 

1.47

 

 

1.91

 

 

1.74

 

Return on average equity(2)

 

 

9.90

 

 

11.62

 

 

6.71

 

 

2.37

 

 

(8.23)

 

 

9.44

 

 

(1.07)

 

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

 

 

12.74

 

 

15.04

 

 

8.91

 

 

3.35

 

 

(10.25)

 

 

12.27

 

 

(1.06)

 

Efficiency ratio

 

 

50.59

 

 

47.83

 

 

54.64

 

 

60.99

 

 

61.92

 

 

50.94

 

 

56.00

 

Loans to deposits ratio

 

 

90.13

 

 

92.95

 

 

88.18

 

 

91.81

 

 

91.91

 

 

90.13

 

 

91.91

 

Noninterest expense to average assets(2)

 

 

1.93

 

 

1.92

 

 

2.10

 

 

2.10

 

 

2.39

 

 

1.98

 

 

2.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Bancorp Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity to average total assets

 

 

11.1

%

 

10.9

%

 

10.8

%

 

10.8

%

 

11.2

%

 

10.9

%

 

11.5

%

Tier 1 capital to average assets (leverage)

 

 

9.5

 

 

9.3

 

 

9.1

 

 

9.1

 

 

9.1

 

 

9.5

 

 

9.1

 

Common equity tier 1 capital

 

 

10.6

 

 

10.1

 

 

10.0

 

 

9.7

 

 

9.5

 

 

10.6

 

 

9.5

 

Tier 1 capital to risk-weighted assets

 

 

11.0

 

 

10.5

 

 

10.4

 

 

10.1

 

 

9.8

 

 

11.0

 

 

9.8

 

Total capital to risk-weighted assets

 

 

12.9

 

 

12.4

 

 

12.3

 

 

11.8

 

 

10.9

 

 

12.9

 

 

10.9

 

Tangible common equity to tangible assets (1)

 

 

9.1

 

 

8.7

 

 

8.6

 

 

8.5

 

 

8.6

 

 

9.1

 

 

8.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Bank Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets (leverage)

 

 

10.1

%

 

9.6

%

 

9.1

%

 

9.0

%

 

9.0

%

 

10.1

%

 

9.0

%

Common equity tier 1 capital

 

 

11.8

 

 

10.9

 

 

10.4

 

 

10.0

 

 

9.7

 

 

11.8

 

 

9.7

 

Tier 1 capital to risk-weighted assets

 

 

11.8

 

 

10.9

 

 

10.4

 

 

10.0

 

 

9.7

 

 

11.8

 

 

9.7

 

Total capital to risk-weighted assets

 

 

12.6

 

 

11.7

 

 

11.2

 

 

10.8

 

 

10.7

 

 

12.6

 

 

10.7

 

 


(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

 

 

 

September 30, 2017

 

 

June 30, 2017

 

 

September 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

3,071,039

 

$