Account Login

Investor Relations

<< Back
Green Bancorp, Inc. Reports Third Quarter 2016 Financial Results
Printer Friendly Version View printer-friendly version

2016 Third Quarter Highlights

  • Third quarter 2016 net loss was $9.0 million after recording $28.2 million in provision for loan losses, of which $25.4 million related to energy loans, including $19.2 million specific to energy loans transferred to held for sale
  • Energy loans were reduced by $80.6 million during the third quarter 2016; additionally, $38.9 million in energy loans were transferred to held for sale and are expected to be sold during the fourth quarter 2016
  • Since March 31, 2016, energy loans have been reduced by $147.7 million, or 53.3%, to $129.7 million, excluding loans held for sale
  • The level of allowance for the Company’s energy related loans equals 6.6%
  • Pre-tax, pre-provision adjusted net income was $14.4 million for the third quarter 2016 compared to $10.5 million in the third quarter 2015, a 37.5% increase
  • Total deposits increased to $3.3 billion in the third quarter 2016, up $108.6 million or 13.5% annualized from the second quarter 2016, driven by successfully executed deposit initiatives across the bank

HOUSTON, Oct. 28, 2016 (GLOBE NEWSWIRE) -- Green Bancorp, Inc. (NASDAQ:GNBC), the bank holding company (“Green Bancorp” or the “Company”) that operates Green Bank, N.A. (“Green Bank”), today announced results for its third quarter and nine months ended September 30, 2016.  The Company reported a net loss for the quarter of $9.0 million, or ($0.25) per diluted common share, compared to net income of $4.1 million or $0.15 per diluted common share reported for the same period in 2015. 

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, "We continued to make good progress reducing our energy loan portfolio and classified assets through the third quarter.  Since we launched this initiative in April, we have resolved $108.8 million of energy production and oil field service loans, as well as $105.9 million of classified assets and purchased credit impaired loans.  We have also moved $38.9 million in energy production loans to held-for-sale status and expect those sales to close through the fourth quarter.  Once these transactions are complete, our energy reductions will total $147.7 million, representing a 53.3% reduction from March 31, 2016.  This will leave the Bank with $129.6 million in energy production and oil field service loans, or 4.3% of the quarter-end portfolio.”

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank, commented, "Given the substantial progress that our MARS team has achieved through October, we are approaching the point where the end of our energy challenges are coming into focus and we can begin to wind down the MARS initiative.  This is an important milestone for the bank, given the scope of resources required to execute the strategy.  We will build on this momentum as we work to return the Bank back to organic growth in 2017."

Results of operations for the quarter ended September 30, 2016

Net loss for the quarter ended September 30, 2016 was $9.0 million, compared with net income of $4.1 million for the same period in 2015. Net loss per diluted common share was ($0.25) for the quarter ended September 30, 2016, compared with net income per diluted common share was $0.15 for the same period in 2015. The decrease in net income was principally due to an increase in provision for loan losses primarily related to energy exposure.  Returns on average assets and average common equity, each on an annualized basis, for the three months ended September 30, 2016 were (0.92%) and (8.23%), respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 61.92% for the three months ended September 30, 2016.

Net interest income before provision for loan losses for the quarter ended September 30, 2016 was $33.7 million, an increase of $12.5 million, or 59.1%, compared with $21.2 million during the same period in 2015.  The increase was primarily due to a $15.3 million increase in interest income on loans due to a 64.8% increase in average loan volume largely driven by the Patriot acquisition.  The net interest margin for the quarter ended September 30, 2016 was 3.62%, compared with 3.63% for the same period in 2015.  Average noninterest-bearing deposits for the quarter ended September 30, 2016 were $609.6 million, an increase of $127.6 million compared with the same period in 2015, and an increase of $16.9 million compared to the quarter ended June 30, 2016. Average shareholders’ equity for the quarter ended September 30, 2016 was $434.6 million, an increase of $133.3 million compared with the same period in 2015, and a decrease of $839 thousand compared to the quarter ended June 30, 2016.

Net interest income before provision for loan losses for the quarter ended September 30, 2016 increased 0.4% or $134 thousand to $33.7 million, compared with $33.5 million for the quarter ended June 30, 2016.  The net interest margin for the quarter ended September 30, 2016 of 3.62% decreased from 3.74% for the quarter ended June 30, 2016 primarily due to a $147.7 million or 121.9%, increase in interest earning deposits with financial institutions, with a yield of 0.51%.  The increase in funds is due to a $103.3 million increase in average deposits and a $28.1 million decrease in average loans for the quarter. 

Noninterest income for the quarter ended September 30, 2016 was $4.1 million, an increase of $1.2 million, or 42.5%, compared with $2.9 million for the same period in 2015.  This increase was primarily due to a $656 thousand increase in customer service fees, $374 thousand increase in swap income, $183 thousand increase in bank owned life insurance and a $126 thousand increase in loan fees, offset by a $113 thousand decrease in gain on sale of loans held for sale.  When comparing the quarter ended September 30, 2016 to the quarter ended June 30, 2016, noninterest income increased $309 thousand, or 8.2%, from $3.8 million, primarily due to a $110 thousand increase in the gain on sale of the guaranteed portion of loans, a $87 thousand increase in loan fees and a $76 thousand increase in customer service fees.

Noninterest expense for the quarter ended September 30, 2016 was $23.4 million, an increase of $9.0 million, or 62.7%, compared with $14.4 million for the same period in 2015.  The increase was primarily due to increases related to ongoing acquired Patriot operations and expenses related to the MARS program of approximately $3.0 million.  When comparing the quarter ended September 30, 2016 to the quarter ended June 30, 2016, noninterest expense increased 13.1%, or $2.7 million, from $20.7 million, primarily due to the previously mentioned MARS program expenses.  Noninterest expense for the quarter included expenses related to the MARS program of $2.1 million in write-downs, loss on sale and other expenses related to real estate acquired by foreclosure and $951 thousand of legal, administrative and other loan expenses.   

Loans held for investment at September 30, 2016 were $3.0 billion, an increase of $1.0 billion, or 53.7%, compared with $2.0 billion at September 30, 2015, primarily due to the Patriot acquisition, which was finalized at the beginning of the fourth quarter 2015.  Loans held for investment at September 30, 2016 decreased $141.8 million, or 4.4%, from June 30, 2016, primarily due to the resolution of loans through the MARS program, including a $113.3 million reduction in energy loans held for investment.  Average loans held for investment increased 64.8% or $1.3 billion to $3.2 billion for the quarter ended September 30, 2016, compared with $1.9 billion for the same period in 2015.  Average loans held for investment for the quarter ended September 30, 2016 decreased 0.9% or $28.1 million from the quarter ended June 30, 2016.

Loans held for sale at September 30, 2016 were $38.9 million, an increase of $38.7 million compared with $192 thousand at September 30, 2015, and an increase of $32.6 million compared with $6.3 million at June 30, 2016.  These increases were primarily due to the transfer of energy loans during the quarter ended September 30, 2016 that are expected to close during the fourth quarter 2016.

Deposits at September 30, 2016 were $3.3 billion, an increase of $1.4 billion, or 70.8%, compared to September 30, 2015, primarily due to the Patriot acquisition and continued opportunities for our portfolio bankers to generate deposit growth within our target markets.  Deposits at September 30, 2016 increased $108.6 million or 3.4% from June 30, 2016 due primarily to increases in money market accounts, interest bearing transaction accounts and noninterest bearing demand accounts resulting from the Company’s deposit attraction and retention initiatives.  Noninterest-bearing deposits at September 30, 2016 were $618.4 million, an increase of $119.3 million, or 23.9%, compared to September 30, 2015 and an increase of $35.1 million, or 6.0%, compared to June 30, 2016.  Average deposits increased 72.0% or $1.4 billion to $3.3 billion for the quarter ended September 30, 2016, compared with the same period of 2015. Average noninterest bearing deposits for the quarter ended September 30, 2016 were $609.6 million, an increase of $127.6 million, or 26.5%, compared with the same period in 2015, and an increase of $16.9 million, or 2.9%, compared with the quarter ended June 30, 2016.

Results of operations for the nine months ended September 30, 2016

Net loss for the nine months ended September 30, 2016 was $3.5 million, compared with net income of $12.9 million for the same period in 2015. Net loss per diluted common share was ($0.10) for the nine months ended September 30, 2016, compared with net income per diluted common share of $0.49 for the same period in 2015.  The decrease in net income was principally due to the increase in provision for loan losses of $49.8 million when comparing the two periods.  Returns on average assets and average common equity, each on an annualized basis, for the nine months ended September 30, 2016 were (0.12%) and (1.07%), respectively. Green Bancorp’s efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 56.0% for the nine months ended September 30, 2016.

Net interest income before provision for loan losses for the nine months ended September 30, 2016, was $101.4 million an increase of $38.8 million, or 62.0%, compared with $62.6 million during the same period in 2015.  The increase was primarily due to a 71.1% increase in average loan volume largely driven by the Patriot acquisition.  The net interest margin for the nine months ended September 30, 2016 decreased to 3.74%, compared with 3.79% for the same period in 2015.  Average noninterest-bearing deposits for the nine months ended September 30, 2016 were $599.1 million, an increase of $131.0 million compared with the same period in 2015.  Average shareholders’ equity for the nine months ended September 30, 2016 was $440.0 million, an increase of $143.5 million compared with the same period in 2015.

Noninterest income for the nine months ended September 30, 2016 was $12.0 million, an increase of $4.1 million, or 52.0%, compared with $7.9 million for the same period in 2015.  This increase was primarily due to a $1.7 million increase in customer service fees, a $931 thousand increase in swap income, a $539 thousand increase in bank owned life insurance income, and a $502 thousand increase in loan fees, all primarily due to the Patriot acquisition, and a $451 thousand increase in gain on sale of guaranteed portion of loans, offset by a $304 thousand decrease in gain on sale of loans held for sale.

Noninterest expense for the nine months ended September 30, 2016, was $63.5 million, an increase of $18.8 million, or 42.1%, compared with $44.7 million for the same period in 2015.  The increase was primarily due to increases related to ongoing acquired Patriot operations and expenses related to the MARS program.

Average loans held for investment increased 71.1% or $1.4 billion to $3.2 billion for the nine months ended September 30, 2016, compared with $1.8 billion for the same period in 2015. Average deposits increased 66.0% or $1.3 million to $3.1 billion for the nine months ended September 30, 2016, compared with the same period of 2015.  These increases were principally due to the Patriot acquisition and growth generated by the portfolio bankers. 

Asset Quality

Nonperforming assets totaled $130.1 million or 3.31% of period end total assets at September 30, 2016, an increase of $93.8 million compared to $36.3 million or 1.50% of period end total assets at September 30, 2015. The increase was due to energy-related migration to nonperforming, the nonperforming loans and real estate acquired through foreclosure that was acquired through the Patriot acquisition and subsequent migration in the acquired portfolio.  Nonperforming assets at September 30, 2016 increased by $36.6 million compared to $93.5 million or 2.44% of period end total assets at June 30, 2016 primarily due to migration to nonperforming in the acquired and energy portfolios.  Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $5.4 million at September 30, 2016, compared with $6.0 million at September 30, 2015 and $5.5 million at June 30, 2016.  Real estate acquired through foreclosure totaled $2.8 million at September 30, 2016, an increase of $1.1 million, or 68.2% compared to September 30, 2015 and a decrease of $3.4 million, or 54.9% compared to June 30, 2016.

The allowance for loan losses was 1.18% of total loans at September 30, 2016, compared with 1.05% of total loans at September 30, 2015 and 1.49% of total loans at June 30, 2016.  The increase in the allowance for loan losses as a percentage of total loans when compared to September 30, 2015 was due primarily to an increase in both specific reserves and general reserves.  The decrease in the percentage from the prior quarter was primarily due to the reduction in specific reserves related to charge-offs in the energy portfolio and the transfer to loans held for sale.  At September 30, 2016, 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, was 1.67%.  Further, the allowance for loan losses plus acquired loan net discount to total loans adjusted for acquired loan net discount was 1.62% as of September 30, 2016.

The Company recorded a provision for loan losses of $28.2 million for the quarter ended September 30, 2016 up from the $11.0 million provision for the loan losses recorded for the quarter ended June 30, 2016.  The third quarter provision includes $19.2 million in reserves related to write downs of energy loans that were transferred to held for sale and $8.8 million in specific reserves added for loans placed on non-accrual during the period, of which $6.1 million is related to energy loans.  The provision for loan losses was $55.2 million for the nine months ended September 30, 2016, compared with $5.4 million for the nine months ended September 30, 2015.

Net charge-offs were $39.7 million for the quarter ended September 30, 2016, compared with net charge offs of $3.3 million for the quarter ended June 30, 2016, and net charge offs of $622 thousand for the quarter ended September 30, 2015.  Net charge-offs for the quarter ended September 30, 2016, included $35.9 million related to energy loans that were transferred to held for sale and $3.3 million related to the disposition of other MARS loans.  Net charge-offs were $52.2 million, or 1.65% of average loans outstanding, for the nine months ended September 30, 2016, compared with net charge offs of $245 thousand, or 0.01% of average loans outstanding for the nine months ended September 30, 2015.

Managed Asset Reduction Strategy (“MARS”)

As previously announced, the Company has initiated a strategy to divest its portfolio of energy loans and certain other classified assets on an accelerated basis, which began early in the second quarter of 2016.  A team of eight workout professionals who report to the Company’s Corporate Chief Credit Officer have been assigned to focus solely on the resolution of the MARS portfolio.  The MARS team will take a multifaceted approach to reducing the portfolio through the use of proven management and disposition techniques.

During the third quarter of 2016, the Company resolved $80.6 million in energy related loans and transferred $38.9 million in energy related loans to held for sale. 

Total energy loans have been reduced to $168.6 million, comprised of $129.7 million in loans held for investment and $38.9 million in loans held for sale, at September 30, 2016 from $292.6 million at December 31, 2015. 

Acquisition of Patriot Bancshares, Inc.

On October 1, 2015, Green Bancorp completed the acquisition of Patriot Bancshares, Inc. (“Patriot”) and its wholly-owned subsidiary, Patriot Bank. Patriot, headquartered in Houston, TX, operated six locations in Houston, two in Dallas and one in Fannin County, Texas.  As of September 30, 2015, Patriot, on a consolidated basis, reported total assets of $1.4 billion, total loans of $1.1 billion, total deposits of $1.1 billion and total shareholders’ equity of $125.2 million.

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, allowance for loan losses to total loans excluding acquired loans, allowance for loan losses plus acquired loans net discount to total loans adjusted for acquired loan net discount, selected metrics excluding one-time acquisition expenses and pre-tax, pre-provision adjusted net income.  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 28, 2016, to discuss its third quarter 2016 results at 8:30 a.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 2016 Earnings Conference Call.  A replay will be available starting at 11:30 am (Eastern Time) on October 28, 2016 and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671.  The passcode for the replay is 13646643.  The replay will be available until 11:59 pm (Eastern Time) on November 4, 2016.

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.comGreen 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 Houston, Dallas and Austin.  Commercial-focused, Green Bank is a nationally chartered bank regulated by the Office of the Comptroller of the Currency, a division of the Department of the Treasury of the United States.

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

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made.  These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information.  By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements. Statements about the expected timing, completion and effects of the proposed transactions and all other statements in this release other than historical facts constitute forward-looking statements.

In addition to factors previously disclosed in Green Bancorp’s reports filed with the SEC and those identified elsewhere in this communication, the following factors among others, could cause actual results to differ materially from forward-looking statements: 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.


                               
                               
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015
    (Dollars in thousands)
Period End Balance Sheet Data:                              
Cash and cash equivalents   $    313,366     $    199,950     $    171,421     $    124,906     $    96,451  
Securities        318,289          237,029          302,838          318,151          249,558  
Other investments        18,621          18,586          24,744          20,986          16,977  
Loans held for sale        38,934          6,253          -          384          192  
Loans held for investment        3,047,618          3,189,436          3,168,183          3,130,669          1,982,280  
Allowance for loan losses        (35,911 )        (47,420 )        (39,714 )        (32,947 )        (20,724 )
Goodwill        85,291          85,291          85,291          85,291          30,129  
Core deposit intangibles, net        10,356          10,758          11,160          11,562          3,704  
Real estate acquired through foreclosure        2,801          6,216          9,230          12,122          1,665  
Premises and equipment, net        26,164          26,706          27,252          27,736          24,766  
Other assets        104,307          94,642          89,004          87,297          30,989  
Total assets   $    3,929,836     $    3,827,447     $    3,849,409     $    3,786,157     $    2,415,987  
                               
Noninterest-bearing deposits   $    618,408     $    583,347     $    592,690     $    643,354     $    499,101  
Interest-bearing transaction and savings deposits        1,304,547          1,208,960          1,069,931          1,104,630          792,957  
Certificates and other time deposits        1,392,944          1,414,954          1,394,398          1,352,764          649,082  
Total deposits        3,315,899          3,207,261          3,057,019          3,100,748          1,941,140  
Securities sold under agreements to repurchase        2,855          3,227          3,544          3,073          3,080  
Other borrowed funds        150,000          150,000          328,968          223,265          158,893  
Subordinated debentures        13,502          13,397          13,292          13,187          -  
Other liabilities        21,365          18,621          15,676          16,482          9,645  
Total liabilities        3,503,621          3,392,506          3,418,499          3,356,755          2,112,758  
Shareholders' equity        426,215          434,941          430,910          429,402          303,229  
Total liabilities and equity   $    3,929,836     $    3,827,447     $    3,849,409     $    3,786,157     $    2,415,987  



                                           
                                           
    For the Quarter Ended   For the
 Nine Months Ended
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
  Sep 30,
2016
  Sep 30,
2015
    (Dollars in thousands)
Income Statement Data:                                          
Interest income:                                          
Loans, including fees   $    37,897     $  37,711   $  37,345   $  37,693   $  22,601   $    112,953     $ 66,512
Securities        989        988      1,081      1,079      809        3,058        2,525
Other investments        199        205      173      119      111        577        334
Federal funds sold        1        1      1      2      -        3        -
Deposits in financial institutions        346        157      124      104      78        627        186
Total interest income        39,432        39,062      38,724      38,997      23,599        117,218       69,557
                                           
Interest expense:                                          
Transaction and savings deposits        1,537        1,312      1,150      1,030      696        3,999        2,073
Certificates and other time deposits        3,791        3,702      2,763      2,505      1,651        10,256        4,732
Subordinated debentures        246        243      237      227      -        726        -
Other borrowed funds        183        264      346      228      90        793        151
Total interest expense        5,757        5,521      4,496      3,990      2,437        15,774        6,956
                                           
Net interest income        33,675        33,541      34,228      35,007      21,162        101,444       62,601
Provision for loan losses        28,200        11,000      16,000      12,500      3,054        55,200        5,364
Net interest income after provision for loan losses        5,475        22,541      18,228      22,507      18,108        46,244        57,237
                                           
Noninterest income:                                          
Customer service fees        1,523        1,447      1,404      1,278      867        4,374        2,647
Loan fees        806        719      699      647      680        2,224        1,722
Gain on sale of available-for-sale securities, net        -        -      -      772      -        -        -
Gain on sale of held for sale loans, net        -        -      41      60      113        41        345
Gain on sale of guaranteed portion of loans, net        968        858      1,138      971      908        2,964        2,513
Other        794        758      873      548      303        2,425        684
Total noninterest income        4,091        3,782      4,155      4,276      2,871        12,028        7,911
                                           
Noninterest expense:                                          
Salaries and employee benefits        11,925        11,461      11,979      11,913      8,562        35,365       26,197
Occupancy        2,194        2,035      2,030      2,743      1,332        6,259        4,354
Professional and regulatory fees        2,180        2,435      1,922      1,863      1,988        6,537        7,060
Data processing        921        945      970      1,261      610        2,836        1,837
Software license and maintenance        580        528      476      738      352        1,584        1,106
Marketing        283        301      298      331      160        882        460
Loan related        1,287        801      243      628      185        2,331        557
Real estate acquired by foreclosure, net        2,105        381      300      352      339        2,786        734
Other        1,908        1,788      1,269      1,643      844        4,965        2,401
Total noninterest expense        23,383        20,675      19,487      21,472      14,372        63,545       44,706
                                           
Income (loss) before income taxes       (13,817 )      5,648      2,896      5,311      6,607        (5,273 )     20,442
Provision (benefit) for income taxes        (4,831 )      2,017      1,057      2,738      2,528        (1,757 )      7,576
Net income (loss)   $    (8,986 )   $  3,631   $  1,839   $  2,573   $  4,079   $    (3,516 )   $ 12,866



                                             
    As of and For the Quarter Ended   As of and For the
Nine Months Ended
 
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
  Sep 30,
2016
  Sep 30,
2015
 
    (Dollars in thousands, except per share data)              
Per Share Data (Common Stock):                                            
Basic earnings (loss) per common share   $    (0.25 )   $  0.10   $  0.05   $  0.07   $  0.16   $    (0.10 )   $  0.49  
Diluted earnings (loss) per share        (0.25 )      0.10      0.05      0.07      0.15        (0.10 )      0.49  
Book value per common share        11.62        11.88      11.77      11.67      11.54        11.62        11.54  
Tangible book value per common share (1)        9.01        9.25      9.14      9.04      10.25        9.01        10.25  
                                             
Common Stock Data:                                            
Shares outstanding at period end        36,683        36,620      36,610      36,788      26,277        36,683        26,277  
Weighted average basic shares outstanding for the period        36,657        36,613      36,706      36,623      26,274        36,659        26,215  
Weighted average diluted shares outstanding for the period        36,657        36,613      36,709      36,854      26,551        36,659        26,481  
                                             
Selected Performance Metrics:                                            
Return on average assets        (0.92 ) %    0.38 %    0.20 %    0.27 %    0.68 %      (0.12 ) %    0.75 %
Return on average equity        (8.23 )      3.35      1.68      2.38      5.37        (1.07 )      5.80  
Efficiency ratio        61.92        55.39      50.77      54.66      59.80        56.00        63.40  
Loans to deposits ratio        91.91        99.44      103.64      100.96      102.12        91.91        102.12  
Noninterest expense to average assets        2.39        2.19      2.08      2.27      2.38        2.22        2.61  
                                             
Capital Ratios:                                            
Average shareholders’ equity to average total assets        11.2   %    11.4 %    11.7 %    11.4 %    12.6 %      11.5   %    12.9 %
Tier 1 capital to average assets (leverage)        9.1        9.6      9.5      9.6      11.4        9.1        11.4  
Common equity tier 1 capital        9.5        9.5      9.4      9.6      12.2        9.5        12.2  
Tier 1 capital to risk-weighted assets        9.8        9.8      9.7      10.0      12.2        9.8        12.2  
Total capital to risk-weighted assets        10.9        11.1      10.8      10.9      13.1        10.9        13.1  
Tangible common equity to tangible assets (1)        8.6        9.1      8.9      9.0      11.3        8.6        11.3  
                                             
Selected Other Metrics:                                            
Number of full time equivalent employees        371        359      353      353      258        371        258  
Number of portfolio bankers        71        67      61      63      52        71        52  
Period end actual loan portfolio average per portfolio banker   $    40,420     $  42,906   $  49,823   $  46,822   $  36,601   $    40,420     $  36,601  
Period end target loan portfolio average per portfolio banker   $    59,400     $  60,762   $  60,738   $  60,584   $  52,299   $    59,400     $  52,299  
Estimated remaining capacity to target loan portfolio size        31.95   %    29.39 %    17.97 %    22.72 %    30.02 %      31.95   %    30.02 %
                                                     
(1) Refer to “Notes to Financial Highlights” at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.



                                                       
                                                       
    For the Quarter Ended  
    September 30, 2016     June 30, 2016     September 30, 2015  
    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   $    3,161,987     $  37,897    4.77 %   $    3,188,438     $  37,711    4.76 %   $    1,918,999     $  22,601    4.67 %
Securities        249,174        989    1.58          267,019        988    1.49          257,930        809    1.24  
Other investments        18,593        199    4.26          24,542        205    3.36          15,909        111    2.77  
Federal funds sold        785        1    0.51          1,166        1    0.34          959        -    -  
Interest earning deposits in financial institutions        268,756        346    0.51          121,096        157    0.52          117,465        78    0.26  
Total interest-earning assets        3,699,295        39,432    4.24 %        3,602,261        39,062    4.36 %        2,311,262        23,599    4.05 %
                                                       
Allowance for loan losses        (47,534 )                    (42,020 )                    (18,892 )            
Noninterest-earning assets        242,366                      243,591                      103,186              
Total assets   $    3,894,127                 $    3,803,832                 $    2,395,556              
                                                       
Liabilities and Shareholders’ Equity                                                      
Interest-bearing liabilities:                                                      
Interest-bearing demand and savings deposits   $    1,253,333     $  1,537    0.49 %   $    1,151,728     $  1,312    0.46 %   $    769,454     $  696    0.36 %
Certificates and other time deposits        1,409,269        3,791    1.07          1,424,437        3,702    1.05          651,334        1,651    1.01  
Securities sold under agreements to repurchase        3,158        1    0.13          3,680        1    0.11          7,483        3    0.16  
Other borrowed funds        150,000        182    0.48          165,776        263    0.64          174,531        87    0.20  
Subordinated debentures        13,451        246    7.28          13,346        243    7.32          -        -    -  
Total interest-bearing liabilities        2,829,211        5,757    0.81 %        2,758,967        5,521    0.80 %        1,602,802        2,437    0.60 %
                                                       
Noninterest-bearing liabilities:                                                      
Noninterest-bearing demand deposits        609,553                      592,649                      481,947              
Other liabilities        20,743                      16,757                      9,437              
Total liabilities        3,459,507                      3,368,373                      2,094,186              
Shareholders’ equity        434,620                      435,459                      301,370              
Total liabilities and  shareholders’ equity   $    3,894,127                 $    3,803,832                 $    2,395,556              
                                                       
Net interest rate spread                 3.43 %                3.56 %                3.45 %
Net interest income and margin(1)         $  33,675    3.62 %         $  33,541    3.74 %         $  21,162    3.63 %
 
(1) Net interest margin is equal to net interest income divided by interest-earning assets.



                                     
                                     
    For the Nine Months Ended September 30,  
    2016     2015  
    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   $    3,158,391     $  112,953    4.78 %   $    1,846,618     $  66,512    4.82 %
Securities        276,252        3,058    1.48          252,673        2,525    1.34  
Other investments        21,865        577    3.52          12,115        334    3.69  
Federal funds sold        1,483        3    0.27          869        -    -  
Interest earning deposits in financial institutions        161,976        627    0.52          93,393        186    0.27  
Total interest-earning assets        3,619,967        117,218    4.33 %        2,205,668        69,557    4.22 %
                                     
Allowance for loan losses        (40,902 )                    (17,699 )            
Noninterest-earning assets        243,657                      104,959              
Total assets   $    3,822,722                 $    2,292,928              
                                     
Liabilities and Shareholders’ Equity                                    
Interest-bearing liabilities:                                    
Interest-bearing demand and savings deposits   $    1,157,704     $  3,999    0.46 %   $    777,438     $  2,073    0.36 %
Certificates and other time deposits        1,392,152        10,256    0.98          650,959        4,732    0.97  
Securities sold under agreements to repurchase        3,651        4    0.15          11,430        13    0.15  
Other borrowed funds        198,693        789    0.53          80,276        138    0.23  
Subordinated debentures        13,347        726    7.27          -        -    -  
Total interest-bearing liabilities        2,765,547        15,774    0.76 %        1,520,103        6,956    0.61 %
                                     
Noninterest-bearing liabilities:                                    
Noninterest-bearing demand deposits        599,120                      468,119              
Other liabilities        18,062                      8,236              
Total liabilities        3,382,729                      1,996,458              
Shareholders’ equity        439,993                      296,470              
Total liabilities and  shareholders’ equity   $    3,822,722                 $    2,292,928              
                                     
Net interest rate spread                 3.57 %                3.61 %
Net interest income and margin(1)         $  101,444    3.74 %         $  62,601    3.79 %
 
(1) Net interest margin is equal to net interest income divided by interest-earning assets.


Yield Trend

                       
                       
    For the Quarter Ended  
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
 
                       
Average yield on interest-earning assets:                      
Loans, including fees    4.77 %  4.76 %  4.81 %  4.91 %  4.67 %
Securities    1.58    1.49    1.39    1.26    1.24  
Other investments    4.26    3.36    3.09    2.04    2.77  
Federal funds sold    0.51    0.34    0.16    0.16    -  
Interest-earning deposits in financial institutions    0.51    0.52    0.53    0.32    0.26  
Total interest-earning assets    4.24 %  4.36 %  4.38 %  4.37 %  4.05 %
                       
Average rate on interest-bearing liabilities:                      
Interest bearing transaction and savings    0.49 %  0.46 %  0.43 %  0.38 %  0.36 %
Certificates and other time deposits    1.07    1.05    0.83    0.77    1.01  
Other borrowed funds    0.48    0.63    0.49    0.33    0.20  
Subordinated debentures    7.28    7.32    7.20    6.94    -  
Total interest-bearing liabilities    0.81 %  0.80 %  0.67 %  0.59 %  0.60 %
                       
Net interest rate spread    3.43 %  3.56 %  3.71 %  3.77 %  3.45 %
Net interest margin (1)    3.62 %  3.74 %  3.87 %  3.92 %  3.63 %
                       
(1) Net interest margin is equal to net interest income divided by interest-earning assets.


Supplemental Yield Trend

                       
                       
    For the Quarter Ended  
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
 
                       
Average yield on loans, excluding fees (2)    4.20 %  4.29 %  4.29 %  4.22 %  4.37 %
Average cost of interest-bearing deposits    0.80    0.78    0.65    0.59    0.66  
Average cost of total deposits, including noninterest-bearing    0.65    0.64    0.52    0.46    0.49  
                       
(2) Average yield on loans, excluding fees, is equal to loan interest income divided by average loan principal.


Portfolio Composition

                                                             
    Sep 30, 2016     Jun 30, 2016     Mar 31, 2016     Dec 31, 2015     Sep 30, 2015  
                                                             
    (Dollars in thousands)  
Period End Balances                                                            
                                                             
Commercial & industrial   $  1,004,414    33.0 %   $  1,128,541    35.4 %   $  1,130,710    35.7 %   $  1,206,452    38.5 %   $  820,337    41.4 %
Real Estate:                                                            
Owner occupied commercial      387,032    12.7        366,587    11.5        367,507    11.6        353,889    11.3        183,224    9.2  
Commercial      1,109,642    36.4        1,078,434    33.8        1,020,399    32.2        904,115    28.9        483,628    24.4  
Construction, land & land development      278,323    9.1        334,925    10.5        356,207    11.2        358,813    11.5        252,206    12.8  
Residential mortgage      256,840    8.4        270,337    8.5        280,236    8.9        293,483    9.4        230,796    11.6  
Consumer and Other      11,367    0.4        10,612    0.3        13,124    0.4        13,917    0.4        12,089    0.6  
Total loans held for investment   $  3,047,618    100.0 %   $  3,189,436    100.0 %   $  3,168,183    100.0 %   $  3,130,669    100.0 %   $  1,982,280    100.0 %
                                                             
Deposits:                                                            
Noninterest-bearing   $  618,408    18.6 %   $  583,347    18.2 %   $  592,690    19.4 %   $  643,354    20.7 %   $  499,101    25.7 %
Interest-bearing transaction      171,457    5.2        164,584    5.1        178,470    5.8        172,737    5.6        132,604    6.8  
Money market      1,019,901    30.8        926,159    28.9        760,992    24.9        793,808    25.6        604,912    31.2  
Savings      113,189    3.4        118,217    3.7        130,469    4.3        138,085    4.5        55,441    2.9  
Certificates and other time deposits      1,392,944    42.0        1,414,954    44.1        1,394,398    45.6        1,352,764    43.6        649,082    33.4  
Total deposits   $  3,315,899    100.0 %   $  3,207,261    100.0 %   $  3,057,019    100.0 %   $  3,100,748    100.0 %   $  1,941,140    100.0 %
                                                             
Loan to Deposit Ratio      91.9 %          99.4 %          103.6 %          101.0 %          102.1 %    


Asset Quality

                                             
    As of and for the Quarter Ended   As of and for the
 Nine Months Ended
 
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
  Sep 30,
2016
  Sep 30,
2015
 
    (Dollars in thousands)              
Nonperforming Assets:                                            
Nonaccrual loans   $    84,491     $   66,628     $   49,264     $   37,541     $   22,762     $    84,491     $   22,762    
Accruing loans 90 or more days past due        3,664          14,320          12,147          52          4,233          3,664          4,233    
Restructured loans—nonaccrual        8,961          853          1,270          1,464          1,623          8,961          1,623    
Restructured loans—accrual        5,378          5,469          5,616          5,988          6,048          5,378          6,048    
Total nonperforming loans       102,494          87,270          68,297          45,045          34,666          102,494          34,666    
Nonperforming loans held for sale        24,773          -          -          -          -          24,773          -    
Real estate acquired through foreclosure        2,801          6,216          9,230          12,122          1,665          2,801          1,665    
Total nonperforming assets   $    130,068     $    93,486     $    77,527     $    57,167     $    36,331     $    130,068     $    36,331    
                                             
Charge-offs:                                            
Commercial and industrial   $    (37,789 )   $    (3,336 )   $    (9,880 )   $    (362 )   $    (981 )   $    (51,005 )   $    (2,285 )  
Owner occupied commercial real estate        (978 )        (177 )        -          -          -          (1,155 )        -    
Commercial real estate        (492 )        -          -          -          -          (492 )        -    
Residential mortgage        (512 )        -          (6 )        (22 )        (41 )        (518 )        (41 )  
Other consumer        (54 )        (37 )        (20 )        (17 )        (12 )        (111 )        (129 )  
Total charge-offs        (39,825 )        (3,550 )        (9,906 )        (401 )        (1,034 )        (53,281 )        (2,455 )  
                                             
Recoveries:                                            
Commercial and industrial   $    37     $    175     $    582     $    94     $    331     $    794     $    2,091    
Owner occupied commercial real estate        17          -          -          -          -          17          -    
Commercial real estate        -          -          -          1          75          -          76    
Construction, land & land development        6          47          26          5          -          79          -    
Residential mortgage        45          20          57          14          4          122          22    
Other consumer        11          14          8          10          2          33          21    
Total recoveries        116          256          673          124          412          1,045          2,210    
                                             
Net charge-offs   $    (39,709 )   $    (3,294 )   $    (9,233 )   $    (277 )   $    (622 )   $    (52,236 )   $    (245 )  
                                             
Allowance for loan losses at end of period   $    35,911     $    47,420     $    39,714     $    32,947     $    20,724     $    35,911     $    20,724    
                                             
Asset Quality Ratios:                                            
Nonperforming assets to total assets        3.31   %      2.44   %      2.01   %      1.51   %      1.50   %      3.31   %      1.50   %
Nonperforming loans to total loans        3.36          2.74          2.16          1.44          1.75          3.36          1.75    
Total classified assets to total regulatory capital        54.12          49.03          50.93          37.59          28.19          54.12          28.19    
Allowance for loan losses to total loans        1.18          1.49          1.25          1.05          1.05          1.18          1.05    
Net charge-offs to average loans outstanding        1.26          0.10          0.30          0.01          0.03          1.65          0.01    


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

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

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

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

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


                                 
                                 
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015  
    (Dollars in thousands, except per share data)
Tangible Common Equity                                
Total shareholders’ equity   $  426,215   $  434,941   $  430,910   $  429,402   $  303,229  
Adjustments:                                
Goodwill      85,291      85,291      85,291      85,291      30,129  
Core deposit intangibles      10,356      10,758      11,160      11,562      3,704  
Tangible common equity   $  330,568   $  338,892   $  334,459   $  332,549   $  269,396  
Common shares outstanding (1)      36,683      36,620      36,610      36,788      26,277  
Book value per common share (1)   $  11.62   $  11.88   $  11.77   $  11.67   $  11.54  
Tangible book value per common share (1)   $  9.01   $  9.25   $  9.14   $  9.04   $  10.25  


(1) Excludes the dilutive effect of common stock issuable upon exercise of outstanding stock options.  The number of exercisable options outstanding was 792,619 as of Sep 30, 2016; 785,352 as of Jun 30, 2016; 874,466 as of Mar 31, 2016; 875,007 as of Dec 31, 2015; and 939,576 as of Sep 30, 2015. 

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

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

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


                                 
                                 
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015  
    (Dollars in thousands)
Tangible Common Equity                                
Total shareholders’ equity   $  426,215   $  434,941   $  430,910   $  429,402   $  303,229  
Adjustments:                                
Goodwill      85,291      85,291      85,291      85,291      30,129  
Core deposit intangibles      10,356      10,758      11,160      11,562      3,704  
Tangible common equity   $  330,568   $  338,892   $  334,459   $  332,549   $  269,396  
Tangible Assets                                
Total assets   $  3,929,836   $  3,827,447   $  3,849,409   $  3,786,157   $  2,415,987  
Adjustments:                                
Goodwill      85,291      85,291      85,291      85,291      30,129  
Core deposit intangibles      10,356      10,758      11,160      11,562      3,704  
Tangible assets   $  3,834,189   $  3,731,398   $  3,752,958   $  3,689,304   $  2,382,154  
Tangible Common Equity to Tangible Assets      8.6 %    9.1 %    8.9 %    9.0 %    11.3 %

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

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

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


                                 
                                 
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015  
    (Dollars in thousands)
Allowance for loan losses   $  35,911   $  47,420   $  39,714   $  32,947   $  20,724  
Total loans excluding acquired loans                                
Total loans   $  3,047,618   $  3,189,436   $  3,168,183   $  3,130,669   $  1,982,280  
Less: Fair value of acquired loans accounted for under ASC Topics 310-20 and 310-30      895,559      974,372      1,092,635      1,197,112      172,645  
Total loans excluding acquired loans   $  2,152,059   $  2,215,064   $  2,075,548   $  1,933,557   $  1,809,635  
Allowance for loan losses to total loans excluding acquired loans     1.67 %   2.14 %   1.91 %   1.70 %   1.15 %


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

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

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


                                 
                                 
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015  
                                 
    (Dollars in thousands)
Allowance for loan losses plus acquired loan net discount                                
Allowance for loan losses at end of period   $  35,911   $  47,420   $  39,714   $  32,947   $  20,724  
Plus: Net discount on acquired loans      13,698      20,412      22,871      25,348      2,580  
Total allowance plus acquired loan net discount   $  49,609   $  67,832   $  62,585   $  58,295   $  23,304  
                                 
Total loans adjusted for acquired loan net discount                                
Total loans   $  3,047,618   $  3,189,436   $  3,168,183   $  3,130,669   $  1,982,280  
Plus: Net discount on acquired loans      13,698      20,412      22,871      25,348      2,580  
Total loans adjusted for acquired loan net discount   $  3,061,316   $  3,209,848   $  3,191,054   $  3,156,017   $  1,984,860  
Allowance for loan losses plus acquired loan net discount loans to total loans adjusted for acquired loan net discount     1.62 %   2.11 %   1.96 %   1.85 %   1.17 %

Selected Metrics Excluding One-time Acquisition Expenses.  The selected metrics excluding one-time acquisition expenses are non‑GAAP measures used by management to evaluate the Company’s performance. We calculate: (a) noninterest expense excluding one-time acquisition expenses as total noninterest expense less the one-time acquisition expenses; (b) net income (loss) excluding one-time acquisition expenses as net income (loss) plus one-time acquisition expenses, net of taxes; (c) diluted earnings per share excluding one-time acquisition expenses as net income excluding one-time acquisition expenses (as calculated in clause (b)) divided by the weighted average diluted shares outstanding; (d) return on average assets excluding one-time acquisition expenses as net income excluding one-time acquisition expenses (as calculated in clause (b)) divided by average total assets; (e) return on average equity excluding one-time acquisition expenses as net income excluding one-time acquisition expenses (as calculated in clause (b)) divided by average total shareholders’ equity; and (f) efficiency ratio excluding one-time acquisition expenses as noninterest expense excluding one-time acquisition expenses (as calculated in clause (a)) divided by the sum of net interest income and noninterest income.  For noninterest expense excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is noninterest expense. For net income (loss) excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is net income. For diluted earnings per share excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is diluted earnings per share. For return on average assets excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is return on average assets. For return on average equity excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is return on average equity. For the efficiency ratio excluding one-time acquisition expenses, the most comparable financial measure calculated in accordance with GAAP is the efficiency ratio.

We believe that these measures are important to many investors in the marketplace who are interested in changes from period to period in noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity and efficiency ratio with the exclusion of one-time acquisition expenses.

The following table reconciles, as of the dates set forth below, the selected metrics excluding one-time acquisition expenses:

                                             
                                             
    For the Quarter Ended   For the
 Nine Months Ended
 
    Sep 30,
2016
  Jun 30,
2016
  Mar 31,
2016
  Dec 31,
2015
  Sep 30,
2015
  Sep 30,
2016
  Sep 30,
2015
 
                                             
    (Dollars in thousands, except per share data)              
Noninterest Expense Excluding One-time Acquisition Expenses                                            
Total noninterest expense   $    23,383     $  20,675   $  19,487   $  21,472   $  14,372   $    63,545     $  44,706  
Less: One-time acquisition expenses        17        37      390      1,846      808        444        3,030  
Noninterest expense excluding one-time acquisition expenses   $    23,366     $  20,638   $  19,097   $  19,626   $  13,564   $    63,101     $  41,676  
                                             
Net Income Excluding One-time Acquisition Expenses                                            
Net Income (loss)   $    (8,986 )   $  3,631   $  1,839   $  2,573   $  4,079   $    (3,516 )   $  12,866  
Plus: One-time acquisition expenses        17        37      390      1,846      808        444        3,030  
Less: Tax benefit at the statutory rate        6        13      137      646      283        155        1,061  
Addback: Tax expense for non-deductible one-time acquisition expenses        -        -      -      857      -        -        -  
Net income (loss) excluding one-time acquisition expenses   $    (8,975 )   $  3,655   $  2,093   $  4,630   $  4,604   $    (3,227 )   $  14,836  
                                             
Weighted average diluted shares outstanding        36,657        36,613      36,709      36,854      26,551        36,659        26,481  
Diluted earnings (loss) per share   $    (0.25 )   $  0.10   $  0.05   $  0.07   $  0.15   $    (0.10 )   $  0.49  
Diluted earnings (loss) per share, excluding one-time acquisition expenses        (0.24 )      0.10      0.06      0.13      0.17        (0.09 )      0.56  
                                             
Average Total Assets   $    3,894,127     $  3,803,832   $  3,769,424   $  3,761,050   $  2,395,556   $    3,822,722     $  2,292,928  
Return on average assets        (0.92 ) %    0.38 %    0.20 %    0.27 %    0.68 %      (0.12 ) %    0.75 %
Return on average assets, excluding one-time acquisition expenses        (0.92 )      0.39      0.22      0.49      0.76        (0.11 )      0.87  
                                             
Average Common Shareholders' equity   $    434,620     $  435,459   $  440,745   $  429,527   $  301,370   $    439,993     $  296,470  
Return on average equity        (8.23 ) %    3.35 %    1.68 %    2.38 %    5.37 %      (1.07 ) %    5.80 %
Return on average equity, excluding one-time acquisition expenses        (8.22 )      3.38      1.91      4.28      6.06        (0.98 )      6.69  
                                             
Net interest income   $    33,675     $  33,541   $  34,228   $  35,007   $  21,162   $    101,444     $  62,601  
Noninterest Income   $    4,091     $  3,782   $  4,155   $  4,276   $  2,871   $    12,028     $  7,911  
                                             
Efficiency ratio        61.92   %    55.39 %    50.77 %    54.66 %    59.80 %      56.00   %    63.40 %
Efficiency ratio, excluding one-time acquisition expenses        61.87        55.30      49.75      49.96      56.44        55.61        59.10  

Pre-tax, Pre-provision Adjusted Net Income.  Pre-tax, pre-provision adjusted net income is a non‑GAAP measure used by management to evaluate the Company’s financial condition. We calculate pre-tax, pre-provision adjusted net income as net income (loss) plus provision (benefit) for income taxes, plus provision for loan losses, plus one-time acquisition expenses.  For pre-tax, pre-provision adjusted net income, the most directly comparable financial measure calculated in accordance with GAAP is net income.

We believe that this measure is important to many investors in the marketplace who are interested in understanding the operating performance of the company before provision for loan losses, which can vary from quarter to quarter, and income taxes.   

The following table reconciles, as of the dates set forth below, pre-tax, pre-provision adjusted net income:


                                           
    For the Quarter Ended   For the
 Nine Months Ended
    Sep 30, 2016   Jun 30, 2016   Mar 31, 2016   Dec 31, 2015   Sep 30, 2015   Sep 30, 2016   Sep 30, 2015
                                           
    (Dollars in thousands)            
Pre-Tax, Pre-Provision Adjusted Net Income                                          
Net Income (loss)   $    (8,986 )   $  3,631   $  1,839   $  2,573   $  4,079   $    (3,516 )   $  12,866
Plus: Provision (benefit) for income taxes        (4,831 )      2,017      1,057      2,738      2,528        (1,757 )      7,576
Plus: Provision for loan losses        28,200        11,000      16,000      12,500      3,054        55,200        5,364
Plus: One-time acquisition expenses        17        37      390      1,846      808        444        3,030
Total pre-tax, pre-provision adjusted net income   $    14,400     $  16,685   $  19,286   $  19,657   $  10,469   $    50,371     $  28,836
Media Contact:
Mike Barone
713-275-8243
mbarone@greenbank.com

Investor Relations:
713-275-8220
investors@greenbank.com

Primary Logo

Green Bancorp, Inc.

Return to Top

Investor Toolkit

Print PagePrint Page
E-mail PageE-mail Page
RSS FeedsRSS Feeds
Share Page
X
Share Page
E-mail AlertsE-mail Alerts
IR ContactsContact IR
Financial Tear SheetFinancial Tear Sheet