Document



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 22, 2018

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):
 
x
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 x
 
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. x





Item 2.02. Result of Operations and Financial Condition
On October 22, 2018, 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, 2018.  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 press 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 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. The press 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 and Exhibit 99.1 of the Current Report on this 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
 
 
 
 
Press Release issued by Green Bancorp, Inc. dated October 22, 2018
 
 
 
 
Third Quarter 2018 Earnings Presentation dated October 22, 2018






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.

Date: October 22, 2018




















































 




Green Bancorp, Inc.
 
/s/ Terry S. Earley
Terry S. Earley
Executive Vice President and Chief Financial Officer








Exhibit


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12507153&doc=16



PRESS RELEASE
FOR IMMEDIATE RELEASE


Green Bancorp, Inc. Reports Third Quarter 2018 Financial Results
2018 Third Quarter Significant Items (GAAP)
Announced proposed merger with Veritex Holdings, Inc. on July 24, 2018.  Veritex has filed regulatory applications with applicable regulators and a registration statement with the U.S. Securities and Exchange Commission that the SEC declared effective on October 12, 2018
Third quarter 2018 net income totaled $15.6 million, an increase of 36.7% from the third quarter 2017
Diluted earnings per common share were $0.41 for the third quarter 2018
Annualized return on average assets was 1.42% during the third quarter 2018
Third quarter 2018 efficiency ratio was 53.64%
Total loans increased $143.9 million during third quarter 2018, an annualized rate of 17.8%; annualized loan production through the third quarter of 2018 totaled $1.3 billion, a 44.9% increase over the prior year
2018 Third Quarter Significant Items (Non-GAAP)
Third quarter 2018 net operating earnings, which excludes $3.0 million in merger-related costs, totaled $18.6 million, or $0.49 per diluted share
Annualized operating return on average tangible common equity totaled 19.0% during the third quarter 2018
Annualized operating return on average assets was 1.69% during the third quarter 2018
Third quarter 2018 operating efficiency ratio was 47.07%, representing the 6th consecutive quarter below 50.0%
Houston, TX – October 22, 2018 – 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, 2018.  The Company reported net income for the quarter of $15.6 million, or $0.41 per diluted common share.
Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, “The Company produced record operating earnings and financial metrics during the third quarter 2018 reflecting continued focus and execution.  I am proud of the team for producing this level of financial results while also working with Veritex Holdings Inc. on integration planning.  I remain excited about the proposed merger of Veritex and the Company and look forward to seeing the benefits of this proposed merger proven out over 2019 and beyond.”
Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank, commented, “We are pleased with our third quarter 2018 strong loan growth of $144 million, or 17.8% annualized. This growth was driven by a nice mix of commercial and industrial, commercial real estate, construction and residential mortgage lending. The primary reasons for this higher than normal growth are the strong economies of Houston and Dallas-Fort Worth, banker capacity for new business, normal level of paydowns and having room to grow in most of our loan concentration categories.”

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Results of Operations - Quarter Ended September 30, 2018 compared with Quarter Ended June 30, 2018

Net income for the quarter ended September 30, 2018 was $15.6 million, a decrease of $824 thousand, or 5.0%, compared with $16.4 million for the quarter ended June 30, 2018. Net income per diluted common share was $0.41 for the quarter ended September 30, 2018, compared with $0.44 for the quarter ended June 30, 2018. The decrease in net income for the quarter ended September 30, 2018 is primarily due to $3.0 million in merger-related costs recognized in the quarter. During the quarter ended September 30, 2018, provision for loan losses decreased $1.6 million, or 83.1%. Returns on average assets and average common equity, each on an annualized basis, for the quarter ended September 30, 2018 were 1.42% and 12.75%, respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 53.64% for the quarter ended September 30, 2018.

Net interest income before provision for loan losses for the quarter ended September 30, 2018 decreased $242 thousand, or 0.6%, to $39.5 million, compared with $39.8 million for the quarter ended June 30, 2018.  The decrease in net interest income was comprised of a $1.7 million, or 3.4%, increase in interest income, offset by a $1.9 million, or 18.5%, increase in interest expense. The increase in interest expense was primarily due to a 0.15% increase in the cost of interest-bearing transaction and savings accounts, a 0.21% increase in the cost of certificates of deposit and a 0.18% increase in the cost of other borrowed funds. Net interest margin for the quarter ended September 30, 2018 was 3.78%, compared with 3.94% for the quarter ended June 30, 2018.  

Noninterest income for the quarter ended September 30, 2018 was $5.5 million, in line with the quarter ended June 30, 2018.  

Noninterest expense for the quarter ended September 30, 2018 was $24.1 million, an increase of $1.5 million, or 6.6%, from $22.6 million for the quarter ended June 30, 2018.  The increase was primarily due to $3.0 million in merger-related costs, offset by a $813 thousand decrease in professional and regulatory fees and a $680 thousand decrease in reserve for unfunded commitments.

Total loans, which includes loans held for investment and loans held for sale, at September 30, 2018 were $3.4 billion, an increase of $143.9 million, or 4.5%, when compared with June 30, 2018.  The increase was primarily due to increases of $72.3 million in commercial and industrial loans, $41.4 million in commercial real estate loans, $22.7 million in construction and land loans and $13.9 million in residential mortgage loans, offset by a reduction of $7.7 million in mortgage warehouse loans.  At September 30, 2018, energy loans totaled $37.5 million, or 1.1%, of total loans. SBA loans comprised the balance of loans held for sale at September 30, 2018.

Deposits at September 30, 2018 were $3.4 billion, a decrease of $11.6 million, or 0.3%, compared with June 30, 2018.  The net decrease is comprised of a $59.6 million, or 4.7%, decrease in interest-bearing transaction and savings deposits offset by increases of $39.0 million, or 3.0%, in time deposits and a $9.1 million, or 1.1%, in noninterest-bearing deposits.  Noninterest-bearing deposits totaled 24.4% of total deposits at September 30, 2018. Average deposits increased $15.2 million, or 0.4%, for the quarter ended September 30, 2018, compared with the prior quarter.

Asset Quality - Quarter Ended September 30, 2018 compared with Quarter Ended June 30, 2018

Nonperforming assets totaled $72.5 million, or 1.64% of period end total assets, at September 30, 2018, an increase of $12.9 million, or 21.6%, compared with $59.6 million, or 1.36% of period end total assets, at June 30, 2018.  The increase was due to increases in nonaccrual loans and real estate acquired through foreclosure. Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $3.0 million at September 30, 2018.  Real estate acquired through foreclosure totaled $2.5 million at September 30, 2018.

The allowance for loan losses was 1.05% of total loans held for investment at September 30, 2018, compared with 1.09% of total loans held for investment at June 30, 2018.  At September 30, 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 1.12%.  Further, the allowance for loan losses plus acquired loan net discount to total loans held for investment adjusted for acquired loan net discount was 1.08% as of September 30, 2018.


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The Company recorded a provision for loan losses of $320 thousand for the quarter ended September 30, 2018, down from the $1.9 million provision for loan losses recorded for the quarter ended June 30, 2018.  The decrease in the provision for the third quarter of 2018 was primarily due to a $1.6 million reduction in the specific reserves for a syndicated health care credit, which offset the addition of general reserves due to loan growth.
Net charge-offs were $220 thousand, or 0.01% of average loans, for the quarter ended September 30, 2018, compared with net charge-offs of $5.0 million, or 0.16% of average loans, for the quarter ended June 30, 2018.
Results of Operations – Nine Months Ended September 30, 2018 compared with Nine Months Ended September 30, 2017

Net income for the nine months ended September 30, 2018 was $41.4 million, compared with net income of $31.5 million for the nine months ended September 30, 2017. Net income per diluted common share was $1.10 for the nine months ended September 30, 2018, compared with net income per diluted common share of $0.85 for the nine months ended September 30, 2017.  The Company recorded a provision for loan losses of $11.9 million, which included $4.5 million in reserves on the energy portfolio and $4.3 million to a syndicated healthcare credit.  The provision for loan losses was $10.0 million for the same period in 2017, which included $7.3 million related to the energy portfolio.  Net charge-offs were $7.9 million for the nine months ended September 30, 2018, which included $6.5 million of energy loans, compared with net charge-offs of $2.8 million for the nine months ended September 30, 2017.

Net interest income before provision for loan losses for the nine months ended September 30, 2018 was $117.5 million, an increase of $13.3 million, or 12.8%, compared with $104.2 million during the nine months ended September 30, 2017. The increase in net interest income was comprised of a $22.2 million, or 17.5%, increase in interest income, offset by a $8.9 million, or 39.2%, increase in interest expense. The increase in interest income was primarily due to a $18.5 million increase in loan income, driven by a $132.5 million, or 4.3%, increase in average balance and a 57 basis point increase in yield, and a $2.7 million increase in securities income due to a $52.8 million, or a 8.1%, increase in average balance and a 35 basis point increase in yield. The increase in interest expense was comprised of increases of $3.6 million in other borrowed funds, due to a $134.9 million increase in average balance, and a 103 basis point increase in rate, $3.0 million in time deposits due to a 34 basis point increase in rate on an average balance that decreased by $25.7 million and $2.2 million in interest-bearing demand and savings deposits, due to a 27 basis point increase in rate on an average balance that decreased by $88.7 million. Net interest margin for the nine months ended September 30, 2018 was 3.86%, compared with 3.59% for the nine months ended September 30, 2017.

Noninterest income for the nine months ended September 30, 2018 was $16.1 million, an increase of $1.5 million, or 10.5%, compared with $14.6 million for the nine months ended September 30, 2017. This increase was primarily due to a $1.2 million positive change in loss on sale of held for sale loans, a $1.0 million increase in customer service fees and $490 thousand increase in derivative income, offset by a $1.3 million decrease in gain on sale of guaranteed portion of loans.

Noninterest expense for the nine months ended September 30, 2018 was $68.8 million, an increase of $8.3 million, or 13.7%, compared with $60.5 million for the nine months ended September 30, 2017.  The increase was primarily due to increases of $3.4 million in salaries and employee benefits, $3.0 million in merger-related costs and $1.6 million in the reserve for unfunded commitments.

Total loans, which includes loans held for investment and loans held for sale, at September 30, 2018 were $3.4 billion, an increase of $281.5 million, or 9.1%, compared with $3.1 billion at September 30, 2017. The increase was primarily due to increases of $216.4 million in commercial and industrial loans, $64.7 million in commercial real estate loans, $27.3 million in owner occupied commercial loans, $14.0 million in residential mortgage loans and $13.8 million in mortgage warehouse loans, offset by loan reductions of $40.6 million in construction and land loans and $3.9 million in consumer and other loans.

Deposits at September 30, 2018 were $3.4 billion, an increase of $6.2 million, or 0.2%, compared with September 30, 2017.  Noninterest-bearing demand deposits increased $149.5 million, or 21.8%, and time deposits increased $18.6 million, or 1.4%, during the nine months ended September 30, 2018, offset by a decrease of $161.9 million, or 11.7%, of interest-bearing transaction and savings deposits. Average deposits increased $23.3 million, or 0.7%, to $3.4 billion for the nine months ended September 30, 2018, compared with the same period of 2017. Average noninterest-bearing deposits for the nine months ended September 30, 2018 were $809.9 million, an increase of $137.7 million, or 20.5%, compared with the same period in 2017.

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Dividend Information
On October 19, 2018, Green Bancorp’s Board of Directors declared a regular quarterly cash dividend of $0.10 per share on its outstanding shares of common stock, payable on November 21, 2018 to shareholders of record as of November 7, 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

Green Bancorp will discuss the Company’s third quarter 2018 financial results and integration planning between Veritex Holdings, Inc. and the Company on a joint investor conference call with Veritex on Tuesday, October 23, 2018 at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/m6/p/zgngdw7i and will receive a unique pin number, which can be used when dialing in for the call. This will allow attendees to enter the call immediately. Alternatively, participants may call toll-free at 1-877-703-9880.

The call and corresponding presentation slides will be webcast live on the home page of the Company's website,
www.greenbank.com. An audio replay will be available one hour after the conclusion of the call at (855) 859-2056, Conference #2178309. This replay, as well as the webcast, will be available until October 30, 2018.

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.

Important Additional Information will be Filed with the SEC
 
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed transaction between Veritex and Green. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful.
 
In connection with the proposed transaction, on October 10, 2018, Veritex filed with the U.S. Securities and Exchange Commission (the “SEC”) a definitive Registration Statement on Form S-4 (File No. 333-227161) containing a joint proxy statement of Veritex and Green and a prospectus of Veritex (the “Joint Proxy/Prospectus”), and each of Veritex and Green may file with the SEC other documents regarding the proposed transaction, including amendments to the Joint Proxy/Prospectus. Veritex and Green began mailing the definitive Joint Proxy/Prospectus to their respective shareholders on October 15, 2018. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY/PROSPECTUS REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN THEIR

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ENTIRETY AND ANY OTHER DOCUMENTS FILED WITH THE SEC BY VERITEX AND/OR GREEN, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN (OR WILL CONTAIN) IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors may obtain free copies of the Registration Statement and the Joint Proxy/Prospectus and other documents filed with the SEC by Veritex and/or Green (when available) through the website maintained by the SEC at www.sec.gov. Free copies of the Registration Statement and the Joint Proxy/Prospectus and other documents filed with the SEC by Veritex and/or Green (when available) can also be obtained by directing a request to Veritex Holdings, Inc., 8214 Westchester Drive, Suite 400, Dallas, Texas 75225, or by directing a request to Green Bancorp, Inc., 4000 Greenbriar Street, Houston, Texas 77098.
 
Participants in the Solicitation
 
Veritex, Green and their respective directors and certain of their respective executive officers and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Green or Veritex in respect of the proposed transaction. Information regarding (i) Veritex’s directors and executive officers is available in (x) its proxy statement for its 2018 annual meeting of shareholders, which was filed with the SEC on April 3, 2018, and (y) the Joint Proxy/Prospectus in the Form S-4, which was filed with the SEC by Veritex on October 10, 2018, and (ii) Green’s directors and executive officers is available in (x) its proxy statement for its 2018 annual meeting of shareholders, which was filed with the SEC on April 13, 2018, and (ii) the Joint Proxy/Prospectus in the Form S-4, which was filed with the SEC by Veritex on October 10, 2018.  Free copies of these documents may be obtained as described in the preceding paragraph.
 
Forward-looking Statements
 
This press release includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, outcomes or achievements to be materially different from any future results, performance, outcomes or achievements expressed or implied by such forward-looking statements.   Forward-looking statements include, without limitation, statements relating to the impact Green or Veritex expect the proposed transaction to have on the combined entity’s operations, financial condition, and financial results, and Green’s or Veritex’s expectations about the ability to successfully integrate the combined businesses and the amount of cost savings and overall operational efficiencies expected to be realized as a result of the proposed transaction.  The forward-looking statements may also include statements about Green’s, Veritex’s or the combined company’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material.  Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing.  Further, certain factors that could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, the possibility that the proposed transaction does not close when expected or at all because required regulatory, shareholder or other approvals or other conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, changes in Veritex’s share price before closing, that the businesses of Veritex and Green will not be integrated successfully, that the cost savings and any synergies from the proposed transaction may not be fully realized or may take longer to realize than expected, disruption from the proposed transaction making it more difficult to maintain relationships with employees, customers or other parties with whom Veritex and/or Green have business relationships, diversion of management time on transaction-related issues, risks relating to the potential dilutive effect of shares of Veritex common stock to be issued in the proposed transaction, the reaction to the transaction of the companies’ customers, employees and counterparties and other factors, many of which are beyond the control of Veritex and Green.  We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2017, the Annual Report on Form 10-K filed by Green for the year ended December 31, 2017, the Joint Proxy/Prospectus in the Form S-4 filed by Veritex on October 10, 2018 and any updates to those risk factors set forth in Veritex’s and Green’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and

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other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov.  If one or more events related to these or other risks or uncertainties materialize, or if Green’s or Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex or Green anticipates.  Accordingly, you should not place undue reliance on any such forward-looking statements.  Any forward-looking statement speaks only as of the date on which it is made.  Neither Veritex nor Green undertakes any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.  All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to herein.

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

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Green Bancorp, Inc.
Financial Highlights
(Unaudited)


 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Period End Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
141,090

 
$
231,251

 
$
142,144

 
$
140,681

 
$
179,463

Securities
 
673,089

 
699,863

 
729,146

 
718,814

 
707,989

Other investments
 
44,775

 
42,962

 
38,157

 
27,283

 
22,443

 
 
 
 
 
 
 
 
 
 
 
Loans held for sale
 
7,627

 
4,992

 
7,461

 
7,156

 
17,673

Loans held for investment
 
3,363,354

 
3,222,108

 
3,136,336

 
3,190,485

 
3,071,761

Total Loans
 
3,370,981

 
3,227,100

 
3,143,797

 
3,197,641

 
3,089,434

Allowance for loan losses
 
(35,186
)
 
(35,086
)
 
(38,233
)
 
(31,220
)
 
(33,480
)
Goodwill
 
85,291

 
85,291

 
85,291

 
85,291

 
85,291

Core deposit intangibles, net
 
7,584

 
7,881

 
8,187

 
8,503

 
8,835

Real estate acquired through foreclosure
 
2,532

 
802

 
802

 
802

 
802

Premises and equipment, net
 
28,873

 
29,178

 
23,694

 
24,002

 
29,733

Bank owned life insurance
 
56,457

 
56,066

 
55,682

 
55,302

 
35,053

Other assets
 
44,388

 
46,369

 
36,580

 
34,817

 
35,362

Total assets
 
$
4,419,874

 
$
4,391,677

 
$
4,225,247

 
$
4,261,916

 
$
4,160,925

 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
$
833,827

 
$
824,753

 
$
849,297

 
$
803,210

 
$
684,329

Interest-bearing transaction and savings deposits
 
1,221,640

 
1,281,255

 
1,337,973

 
1,331,601

 
1,383,514

Certificates and other time deposits
 
1,359,005

 
1,320,042

 
1,266,457

 
1,262,332

 
1,340,410

Total deposits
 
3,414,472

 
3,426,050

 
3,453,727

 
3,397,143

 
3,408,253

Securities sold under agreements to repurchase
 
3,502

 
4,141

 
4,948

 
5,173

 
5,867

Other borrowed funds
 
437,000

 
412,000

 
230,000

 
325,000

 
215,000

Subordinated debentures and subordinated notes
 
48,161

 
48,019

 
47,878

 
47,737

 
47,596

Other liabilities
 
26,535

 
21,974

 
19,816

 
23,068

 
21,898

Total liabilities
 
3,929,670

 
3,912,184

 
3,756,369

 
3,798,121

 
3,698,614

Shareholders' equity
 
490,204

 
479,493

 
468,878

 
463,795

 
462,311

Total liabilities and equity
 
$
4,419,874

 
$
4,391,677

 
$
4,225,247

 
$
4,261,916

 
$
4,160,925



7


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
 
For the Quarter Ended
 
For the Nine Months Ended
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Sep 30, 2018
 
Sep 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Income Statement Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, including fees
 
$
46,612

 
$
44,479

 
$
41,799

 
$
39,870

 
$
39,549

 
$
132,890

 
$
114,396

Securities
 
4,277

 
4,734

 
4,558

 
4,446

 
4,337

 
13,569

 
10,848

Other investments
 
360

 
341

 
300

 
241

 
221

 
1,001

 
606

Deposits in financial institutions and fed funds sold
 
651

 
659

 
493

 
671

 
432

 
1,803

 
1,172

Total interest income
 
51,900

 
50,213

 
47,150

 
45,228

 
44,539

 
149,263

 
127,022

Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction and savings deposits
 
3,393

 
3,023

 
2,464

 
2,588

 
2,502

 
8,880

 
6,710

Certificates and other time deposits
 
5,671

 
4,712

 
4,071

 
4,017

 
4,042

 
14,454

 
11,435

Subordinated debentures and subordinated notes
 
1,120

 
1,109

 
1,079

 
1,065

 
1,059

 
3,308

 
3,151

Other borrowed funds
 
2,197

 
1,608

 
1,294

 
738

 
657

 
5,099

 
1,499

Total interest expense
 
12,381

 
10,452

 
8,908

 
8,408

 
8,260

 
31,741

 
22,795

Net interest income
 
39,519

 
39,761

 
38,242

 
36,820

 
36,279

 
117,522

 
104,227

Provision for loan losses
 
320

 
1,897

 
9,663

 
4,405

 
2,300

 
11,880

 
9,955

Net interest income after provision for loan losses
 
39,199

 
37,864

 
28,579

 
32,415

 
33,979

 
105,642

 
94,272

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer service fees
 
2,874

 
2,578

 
2,395

 
2,273

 
2,365

 
7,847

 
6,830

Loan fees
 
942

 
996

 
833

 
704

 
871

 
2,771

 
2,811

Gain (loss) on sale of available-for-sale securities, net
 

 
66

 

 

 
(332
)
 
66

 
(38
)
(Loss) gain on held for sale loans, net
 

 

 

 
(1,098
)
 
(1,294
)
 

 
(1,210
)
Gain on sale of guaranteed portion of loans, net
 
705

 
1,112

 
941

 
1,648

 
1,302

 
2,758

 
4,107

Other
 
952

 
733

 
989

 
401

 
478

 
2,674

 
2,084

Total noninterest income
 
5,473

 
5,485

 
5,158

 
3,928

 
3,390

 
16,116

 
14,584

Noninterest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
13,729

 
13,640

 
13,601

 
14,996

 
12,487

 
40,970

 
37,546

Occupancy
 
2,068

 
2,263

 
2,077

 
2,069

 
2,080

 
6,408

 
6,125

Professional and regulatory fees
 
1,359

 
2,172

 
2,261

 
2,241

 
2,331

 
5,792

 
6,627

Data processing
 
923

 
1,029

 
972

 
981

 
924

 
2,924

 
2,827

Software license and maintenance
 
732

 
703

 
716

 
636

 
464

 
2,151

 
1,391

Marketing
 
354

 
257

 
176

 
259

 
154

 
787

 
516

Loan related
 
587

 
467

 
47

 
632

 
271

 
1,101

 
1,172

Merger costs
 
2,955

 

 

 

 

 
2,955

 

Other
 
1,425

 
2,114

 
2,203

 
1,768

 
1,356

 
5,742

 
4,313

Total noninterest expense
 
24,132

 
22,645

 
22,053

 
23,582

 
20,067

 
68,830

 
60,517

Income before income taxes
 
20,540

 
20,704

 
11,684

 
12,761

 
17,302

 
52,928

 
48,339

Provision for income taxes
 
4,943

 
4,283

 
2,322

 
10,142

 
5,895

 
11,548

 
16,822

Net income
 
$
15,597

 
$
16,421

 
$
9,362

 
$
2,619

 
$
11,407

 
$
41,380

 
$
31,517



8


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
 
For the Quarter Ended
 
For the Nine Months Ended
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Sep 30, 2018
 
Sep 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Per Share Data (Common Stock):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
 
$
0.42

 
$
0.44

 
$
0.25

 
$
0.07

 
$
0.31

 
$
1.11

 
$
0.85

Diluted earnings per share
 
0.41

 
0.44

 
0.25

 
0.07

 
0.31

 
1.10

 
0.85

Book value per common share
 
13.12

 
12.86

 
12.62

 
12.50

 
12.46

 
13.12

 
12.46

Tangible book value per common share (1)
 
10.63

 
10.36

 
10.10

 
9.97

 
9.93

 
10.63

 
9.93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock Data:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Shares outstanding at period end
 
37,368

 
37,289

 
37,163

 
37,103

 
37,096

 
37,368

 
37,096

Weighted average basic shares outstanding for the period
 
37,339

 
37,274

 
37,341

 
37,103

 
37,056

 
37,259

 
37,023

Weighted average diluted shares outstanding for the period
 
37,726

 
37,646

 
37,586

 
37,393

 
37,332

 
37,652

 
37,273

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Performance Metrics:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets(2)
 
1.42
%
 
1.54
%
 
0.90
%
 
0.25
%
 
1.10
%
 
1.29
%
 
1.03
%
Pre-tax, pre-provision operating return on average assets(1)(2)
 
2.17

 
2.15

 
2.10

 
2.01

 
2.04

 
2.14

 
1.95

Return on average equity(2)
 
12.75

 
13.96

 
8.15

 
2.23

 
9.90

 
11.66

 
9.44

Return on average tangible common equity(1)(2)
 
16.01

 
17.65

 
10.47

 
3.02

 
12.74

 
14.77

 
12.27

Efficiency ratio
 
53.64

 
50.05

 
50.81

 
57.87

 
50.59

 
51.50

 
50.94

Loans to deposits ratio
 
98.50

 
94.05

 
90.81

 
93.92

 
90.13

 
98.50

 
90.13

Net interest margin
 
3.78

 
3.94

 
3.87

 
3.64

 
3.65

 
3.86

 
3.59

Noninterest expense to average assets(2)
 
2.20

 
2.13

 
2.13

 
2.23

 
1.93

 
2.15

 
1.98

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Performance Metrics - Operating:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted operating earnings per share
 
$
0.49

 
$
0.44

 
$
0.26

 
$
0.14

 
$
0.33

 
$
1.19

 
$
0.87

Operating return on average
assets (2)
 
1.69
%
 
1.56
%
 
0.93
%
 
0.50
%
 
1.20
%
 
1.40
%
 
1.06
%
Operating return on average tangible common equity(2)
 
19.00

 
17.88

 
10.81

 
5.90

 
13.89

 
15.99

 
12.58

Operating efficiency ratio
 
47.07

 
49.45

 
49.90

 
47.69

 
46.49

 
48.79

 
49.89


(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.


9


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
 
For the Quarter Ended
 
For the Nine Months Ended
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Sep 30, 2018
 
Sep 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Green Bancorp Capital Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average shareholders’ equity to average total assets
 
11.1
%
 
11.1
%
 
11.1
%
 
11.1
%
 
11.1
%
 
11.1
%
 
10.9
%
Tier 1 capital to average assets (leverage)
 
10.1

 
10.0

 
9.8

 
9.5

 
9.5

 
10.1

 
9.5

Common equity tier 1 capital
 
10.9

 
10.9

 
10.9

 
10.5

 
10.6

 
10.9

 
10.6

Tier 1 capital to risk-weighted assets
 
11.2

 
11.3

 
11.2

 
10.9

 
11.0

 
11.2

 
11.0

Total capital to risk-weighted assets
 
13.1

 
13.2

 
13.3

 
12.7

 
12.9

 
13.1

 
12.9

Tangible common equity to tangible assets(1)
 
9.2

 
9.0

 
9.1

 
8.9

 
9.1

 
9.2

 
9.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Green Bank Capital Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital to average assets (leverage)
 
10.7
%
 
10.6
%
 
10.4
%
 
10.1
%
 
10.1
%
 
10.7
%
 
10.1
%
Common equity tier 1 capital
 
12.0

 
12.0

 
12.0

 
11.6

 
11.8

 
12.0

 
11.8

Tier 1 capital to risk-weighted assets
 
12.0

 
12.0

 
12.0

 
11.6

 
11.8

 
12.0

 
11.8

Total capital to risk-weighted assets
 
12.9

 
13.0

 
13.0

 
12.4

 
12.6

 
12.9

 
12.6


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


10


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
 
For the Quarter Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 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
 
$
3,288,748

 
$
46,612

 
5.62
%
 
$
3,157,297

 
$
44,479

 
5.65
%
 
$
3,071,039

 
$
39,549

 
5.11
%
Securities
 
689,930

 
4,277

 
2.46

 
713,707

 
4,734

 
2.66

 
712,431

 
4,337

 
2.42

Other investments
 
43,655

 
360

 
3.27

 
39,660

 
341

 
3.45

 
26,009

 
221

 
3.37

Interest earning deposits in financial institutions and federal funds sold
 
126,021

 
651

 
2.05

 
138,916

 
659

 
1.90

 
134,868

 
432

 
1.27

Total interest-earning assets
 
4,148,354

 
51,900

 
4.96
%
 
4,049,580

 
50,213

 
4.97
%
 
3,944,347

 
44,539

 
4.48
%
Allowance for loan losses
 
(36,003
)
 
 
 
 
 
(36,863
)
 
 
 
 
 
(32,395
)
 
 
 
 
Noninterest-earning assets
 
247,893

 
 
 
 
 
240,640

 
 
 
 
 
219,754

 
 
 
 
Total assets
 
$
4,360,244

 
 
 
 
 
$
4,253,357

 
 
 
 
 
$
4,131,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand and savings deposits
 
$
1,236,585

 
$
3,393

 
1.09
%
 
$
1,290,065

 
$
3,023

 
0.94
%
 
$
1,349,701

 
$
2,502

 
0.74
%
Certificates and other time deposits
 
1,345,168

 
5,671

 
1.67

 
1,293,055

 
4,712

 
1.46

 
1,343,732

 
4,042

 
1.19

Securities sold under agreements to repurchase
 
3,964

 
1

 
0.10

 
4,941

 
2

 
0.16

 
5,943

 
2

 
0.13

Other borrowed funds
 
386,261

 
2,196

 
2.26

 
310,022

 
1,606

 
2.08

 
227,936

 
655

 
1.14

Subordinated debentures and subordinated notes
 
48,096

 
1,120

 
9.24

 
47,956

 
1,109

 
9.28

 
47,531

 
1,059

 
8.84

Total interest-bearing liabilities
 
3,020,074

 
12,381

 
1.63
%
 
2,946,039

 
10,452

 
1.42
%
 
2,974,843

 
8,260

 
1.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
830,040

 
 
 
 
 
813,512

 
 
 
 
 
679,851

 
 
 
 
Other liabilities
 
24,753

 
 
 
 
 
21,848

 
 
 
 
 
19,709

 
 
 
 
Total liabilities
 
3,874,867

 
 
 
 
 
3,781,399

 
 
 
 
 
3,674,403

 
 
 
 
Shareholders’ equity
 
485,377

 
 
 
 
 
471,958

 
 
 
 
 
457,303

 
 
 
 
Total liabilities and  shareholders’ equity
 
$
4,360,244

 
 
 
 
 
$
4,253,357

 
 
 
 
 
$
4,131,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread 
 
 
 
 
 
3.33
%
 
 
 
 
 
3.55
%
 
 
 
 
 
3.38
%
Net interest income and margin(1)
 
 
 
$
39,519

 
3.78
%
 
 
 
$
39,761

 
3.94
%
 
 
 
$
36,279

 
3.65
%

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


11


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

 
 
For the Nine Months Ended September 30,
 
 
2018
 
2017
 
 
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
 
$
3,192,201

 
$
132,890

 
5.57
%
 
$
3,059,750

 
$
114,396

 
5.00
%
Securities
 
707,717

 
13,569

 
2.56

 
654,913

 
10,848

 
2.21

Other investments
 
38,544

 
1,001

 
3.47

 
22,642

 
606

 
3.58

Interest earning deposits in financial institutions and federal funds sold
 
129,814

 
1,803

 
1.86

 
148,461

 
1,172

 
1.06

Total interest-earning assets
 
4,068,276

 
149,263

 
4.91
%
 
3,885,766

 
127,022

 
4.37
%
Allowance for loan losses
 
(35,047
)
 
 
 
 
 
(30,717
)
 
 
 
 
Noninterest-earning assets
 
239,942

 
 
 
 
 
226,984

 
 
 
 
Total assets
 
$
4,273,171

 
 
 
 
 
$
4,082,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand and savings deposits
 
$
1,275,943

 
$
8,880

 
0.93
%
 
$
1,364,649

 
$
6,710

 
0.66
%
Certificates and other time deposits
 
1,300,592

 
14,454

 
1.49

 
1,326,247

 
11,435

 
1.15

Securities sold under agreements to repurchase
 
4,697

 
5

 
0.14

 
4,640

 
5

 
0.14

Other borrowed funds
 
337,300

 
5,094

 
2.02

 
202,449

 
1,494

 
0.99

Subordinated debentures
 
47,957

 
3,308

 
9.22

 
47,486

 
3,151

 
8.87

Total interest-bearing liabilities
 
2,966,489

 
31,741

 
1.43
%
 
2,945,471

 
22,795

 
1.03
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
809,941

 
 
 
 
 
672,278

 
 
 
 
Other liabilities
 
22,221

 
 
 
 
 
18,094

 
 
 
 
Total liabilities
 
3,798,651

 
 
 
 
 
3,635,843

 
 
 
 
Shareholders’ equity
 
474,520

 
 
 
 
 
446,190

 
 
 
 
Total liabilities and  shareholders’ equity
 
$
4,273,171

 
 
 
 
 
$
4,082,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread 
 
 
 
 
 
3.48
%
 
 
 
 
 
3.34
%
Net interest income and margin(1)
 
 
 
$
117,522

 
3.86
%
 
 
 
$
104,227

 
3.59
%

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

12


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

Yield Trend
 
 
For the Quarter Ended
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
Average yield on interest-earning assets:
 
 
 
 
 
 
 
 
 
 
Loans, including fees
 
5.62
%
 
5.65
%
 
5.42
%
 
5.13
%
 
5.11
%
Securities
 
2.46

 
2.66

 
2.57

 
2.47

 
2.42

Other investments
 
3.27

 
3.45

 
3.78

 
4.09

 
3.37

Interest-earning deposits in financial institutions and federal funds sold
 
2.05

 
1.90

 
1.61

 
1.35

 
1.27

Total interest-earning assets
 
4.96
%
 
4.97
%
 
4.77
%
 
4.47
%
 
4.48
%
 
 
 
 
 
 
 
 
 
 
 
Average rate on interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
Interest-bearing transaction and savings
 
1.09
%
 
0.94
%
 
0.77
%
 
0.74
%
 
0.74
%
Certificates and other time deposits
 
1.67

 
1.46

 
1.31

 
1.24

 
1.19

Other borrowed funds
 
2.23

 
2.05

 
1.64

 
1.20

 
1.11

Subordinated debentures
 
9.24

 
9.28

 
9.15

 
8.86

 
8.84

Total interest-bearing liabilities
 
1.63
%
 
1.42
%
 
1.23
%
 
1.12
%
 
1.10
%
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread
 
3.33
%
 
3.55
%
 
3.54
%
 
3.35
%
 
3.38
%
Net interest margin(1)
 
3.78
%
 
3.94
%
 
3.87
%
 
3.64
%
 
3.65
%

(1)     Net interest margin is equal to net interest income divided by interest-earning assets.
Supplemental Yield Trend
 
 
For the Quarter Ended
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
Average yield on loans, excluding fees and discounts(2)
 
5.32
%
 
5.12
%
 
4.94
%
 
4.74
%
 
4.69
%
Average cost of interest-bearing deposits
 
1.39

 
1.20

 
1.03

 
0.98

 
0.96

Average cost of total deposits, including noninterest-bearing
 
1.05

 
0.91

 
0.79

 
0.77

 
0.77


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


13


Green Bancorp, Inc.
Financial Highlights
(Unaudited)

Portfolio Composition
 
 
Sep 30, 2018
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Period End Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
 
$
1,142,733

 
34.0
%
 
$
1,070,420

 
33.2
%
 
$
1,038,715

 
33.1
%
 
$
1,066,266

 
33.4
%
 
$
926,382

 
30.2
%
Mortgage warehouse
 
236,307

 
7.0

 
244,041

 
7.6

 
185,849

 
5.9

 
220,230

 
6.9

 
222,468

 
7.2

Real Estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Owner occupied commercial
 
435,667

 
13.0

 
436,153

 
13.5