MCKINNEY, Texas, Jan. 25, 2017 (GLOBE NEWSWIRE) -- Independent Bank Group, Inc. (NASDAQ:IBTX), the holding company for Independent Bank, today announced net income available to common shareholders of $14.8 million, or $0.79 per diluted share, for the quarter ended December 31, 2016 compared to $10.5 million, or $0.58 per diluted share, for the quarter ended December 31, 2015 and $14.5 million, or $0.78 per diluted share, for the quarter ended September 30, 2016.
For the year ended December 31, 2016, the Company reported net income available to common shareholders of $53.5 million (or $2.88 per diluted share) compared to $38.5 million (or $2.21 per diluted share) for the year ended December 31, 2015.
Highlights
- Core (non-GAAP) earnings were $15.5 million, or $0.83 per diluted share, compared to $14.8 million, or $0.80 per diluted share, for third quarter 2016, representing an increase in linked quarter core earnings of 4.9%
- Strong organic loan growth of 19.3% for the quarter (annualized) and 14.6% for the year
- Return on assets above 1%
- Increased the quarterly dividend paid to shareholders by 25% to $0.10 per share, up from $0.08 per share
- Announced acquisition of Carlile Bancshares, Inc. and its subsidiary, Northstar Bank that is projected to be accretive to earnings per share, tangible book value and capital ratios
"2016 was a great year for Independent Bank Group," said Independent Bank Group Chairman, Chief Executive Officer and President David Brooks. "We reported record earnings for the year and the quarter which were driven by organic loan growth and continued focus on improving overall efficiency." Brooks continued, "The Carlile Bancshares acquisition is another big step forward for our Company, expanding our presence in North and Central Texas and providing entry into the Colorado banking market. We look forward to closing this acquisition and to a successful 2017."
Fourth Quarter 2016 Operating Results
Net Interest Income
- Net interest income was $46.5 million for fourth quarter 2016 compared to $42.2 million for fourth quarter 2015 and $45.7 million for third quarter 2016. Net interest income increased compared to the linked quarter primarily due to organic loan growth. The increase in net interest income from the previous year was primarily due to increased average earning asset balances resulting from organic growth as well as loans and investments acquired in the Grand Bank acquisition in November 2015.
- The yield on interest-earning assets was 4.16% for fourth quarter 2016 compared to 4.46% for fourth quarter 2015 and 4.22% for third quarter 2016. The decreases from the prior periods are reflective of lower loan yields compared to previous periods resulting from an increase in variable rate loan fundings during the second half of 2016.
- The cost of interest bearing liabilities, including borrowings, was 0.75% for fourth quarter 2016 compared to 0.66% for fourth quarter 2015 and 0.74% for third quarter 2016. The increase from the prior year is primarily due to the issuance of subordinated debt in 2016 and higher rates offered on public fund certificates of deposit. The increase from the linked quarter is primarily due to the higher public fund rates.
- The net interest margin was 3.59% for fourth quarter 2016 compared to 3.96% for fourth quarter 2015 and 3.66% for third quarter 2016. The core margin, which excludes purchased loan accretion, was 3.58% for fourth quarter 2016 compared to 3.91% for fourth quarter 2015 and 3.65% for third quarter 2016. The decrease from the prior year and linked quarters is primarily due to lower loan yields and a lower yielding earning asset mix due to increased liquidity throughout most of the quarter.
- The average balance of total interest-earning assets grew by $935.1 million and totaled $5.2 billion at December 31, 2016 compared to $4.2 billion at December 31, 2015 and grew by $188.3 million compared to $5.0 billion at September 30, 2016. This increase from prior year and the linked quarter is due to organic growth while the change from prior year is also due in part to assets acquired in the Grand Bank acquisition in fourth quarter 2015.
Noninterest Income
- Total noninterest income increased $970 thousand compared to fourth quarter 2015 and increased $292 thousand compared to third quarter 2016.
- The increase from the prior year reflects an increase of $532 thousand in mortgage fee income, a $140 thousand increase in cash surrender value of BOLI and a $350 thousand increase in other noninterest income. The increase in mortgage fee income is due to the addition of mortgage loan officers and increased home purchase activity in the Dallas and Austin markets. The increase in BOLI income is a result of $15 million in policies purchased at the end of second quarter 2016. The increase in other noninterest income from the prior year is primarily related to $282 thousand of recognized income related to a change in bank card vendors.
- The increase from the linked quarter reflects increased service charges of $95 thousand and an increase in other noninterest income of $343 thousand offset by decreased mortgage fee income of $203 thousand. The increase in service charges is due to a new deposit fee schedule implemented in third quarter. The increase in other noninterest income is primarily due to the income recognized for switching bank card vendors during the quarter as discussed above. The decrease in mortgage fee income is due to seasonality.
Noninterest Expense
- Total noninterest expense decreased $1.2 million compared to fourth quarter 2015 and increased $474 thousand compared to third quarter 2016.
- The decrease in noninterest expense compared to fourth quarter 2015 is due primarily to a decrease of $1.4 million in salaries and benefits expense in addition to a decrease of $325 thousand in professional fees and offset by increases of $465 thousand in FDIC assessment, $206 thousand in advertising and public relations and $158 thousand in acquisition expenses. The decrease in salaries and benefits over the prior year is due to elevated salaries and benefits in fourth quarter 2015 due to retention of Grand Bank employees until operational conversion as well as higher bonus accruals in the fourth quarter 2015. Professional fees were also higher in fourth quarter 2015 due to increased legal fees related to energy loan workouts and to a lawsuit inherited in the Bank of Houston transaction. The increase in FDIC assessment in fourth quarter 2016 is primarily due to increased accounts acquired in the Grand Bank transaction. The increase in advertising and public relations in fourth quarter 2016 is due to an increase in Company donations. Acquisition expenses increased in fourth quarter 2016 due to legal fees and fairness opinion related to the Carlile Bancshares acquisition.
- The net increase from the linked quarter is primarily related to an increase of $782 thousand in acquisition expenses relating to the Carlile Bancshares acquisition discussed above offset by small decreases in salaries and benefits, communications and other real estate owned expenses.
Provision for Loan Losses
- Provision for loan loss expense was $2.2 million for the fourth quarter 2016, an increase of $227 thousand compared to $2.0 million for fourth quarter 2015, and up slightly from $2.1 million for the third quarter 2016. Provision expense is primarily reflective of organic loan growth during the respective period.
- The allowance for loan losses was $31.6 million, or 0.69% of total loans, at December 31, 2016, compared to $27.0 million, or 0.68% of total loans at December 31, 2015, and compared to $29.6 million, or 0.68% of total loans, at September 30, 2016. The increases from prior periods are primarily due to additional general reserves for organic loan growth offset by the $3 million partial chargeoff of an energy loan in the third quarter 2016, which had been fully reserved in the prior year.
Fourth Quarter 2016 Balance Sheet Highlights:
Loans
- Total loans held for investment were $4.573 billion at December 31, 2016 compared to $4.361 billion at September 30, 2016 and to $3.989 billion at December 31, 2015. This represented total loan growth of $212.1 million for the quarter, or 19.3% on an annualized basis. Loans have grown 14.6% from December 31, 2015.
- Energy outstandings at the end of fourth quarter were $125.3 million (2.7% of total loans) versus $126.5 million at third quarter 2016. As of December 31, 2016, there were three nonperforming classified energy credits with balances totaling $7.7 million and nine performing classified energy credits with a balance of $19.1 million. All energy related credits continue to be closely monitored. As of December 31, 2016, the total energy related allowance was 4.6% of the total energy portfolio.
Asset Quality
- Total nonperforming assets increased to $19.8 million, or 0.34% of total assets at December 31, 2016 from $13.3 million, or 0.23% of total assets at September 30, 2016 and from $18.1 million, or 0.36% of total assets at December 31, 2015.
- Total nonperforming loans increased to $17.8 million, or 0.39% of total loans at December 31, 2016 compared to $11.2 million, or 0.26% of total loans at September 30, 2016 and from $14.9 million, or 0.37% of total loans at December 31, 2015.
- The increase in nonperforming assets and nonperforming loans from the linked quarter is primarily due to the addition of two commercial real estate loans totaling $5.8 million that were placed on nonaccrual status in fourth quarter 2016.
- The net increase in nonperforming assets and nonperforming loans from the prior year is due to $10.8 million in loans being placed on nonaccrual during the year, including the above mentioned loans placed on nonaccrual in fourth quarter 2016 offset by a $3 million partial chargeoff on an energy loan in the third quarter and other reductions in other real estate and repossessed assets during the period.
- Charge-offs were 0.02% annualized in the fourth quarter 2016 compared to 0.32% annualized in the linked quarter and none in the prior year quarter. Third quarter 2016 charge-offs were elevated due to the charge-off discussed above related to an impaired energy loan.
Deposits and Borrowings
- Total deposits were $4.577 billion at December 31, 2016 compared to $4.416 billion at September 30, 2016 and compared to $4.028 billion at December 31, 2015.
- Total borrowings (other than junior subordinated debentures) were $568.0 million at December 31, 2016, a decrease of $10 million from September 30, 2016 and an increase of $197 million from December 31, 2015. These changes reflect the issuance of $43.4 million, net of discount and costs, of 5.875% subordinated debentures issued in second quarter 2016 with the remainder resulting from the use of short term FHLB advances during the applicable periods.
Capital
- In November 2016, the Company sold 400,000 shares of common stock in a private placement, raising approximately $20 million, net of offering expenses, in new equity capital. The additional capital had a positive effect on capital ratios, including an increase in our tangible common equity to tangible assets ratio to 7.17% as of December 31, 2016, up from 6.86% at September 30, 2016 and 6.87% at December 31, 2015.
- Book value and tangible book value per common share also increased to $35.63 and $21.19, respectively, at December 31, 2016 compared to $34.79 and $20.03, respectively, at September 30, 2016 and $32.79 and $17.85 respectively, at December 31, 2015 due to the retention of earnings and the additional capital from the sale of common stock.
Subsequent Events
The Company is required, under general accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2016 on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2016 and will adjust amounts preliminarily reported, if necessary.
About Independent Bank Group
Independent Bank Group, through its wholly owned subsidiary, Independent Bank, provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. Independent Bank Group operates 41 banking offices in three market regions located in the Dallas/Fort Worth, Austin and Houston, Texas areas.
Conference Call
A conference call covering Independent Bank Group’s fourth quarter earnings announcement will be held on Thursday, January 26, 2017 at 8:30 a.m. (EST) and can be accessed by calling 1-877-303-7611 and by identifying the conference ID number 46615431. The conference materials will be available by accessing the Investor Relations page of our website, www.ibtx.com. A recording of the conference call and the conference materials will be available from January 26, 2017 through February 2, 2017 on our website.
Forward-Looking Statements
The numbers as of and for the quarter and/or year ended December 31, 2016 are unaudited. From time to time, our comments and releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “forecast,” “guidance,” “intends,” “targeted,” “continue,” “remain,” “should,” “may,” “plans,” “estimates,” “will,” “will continue,” “will remain,” variations on such words or phrases, or similar references to future occurrences or events in future periods; however, such words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, and other financial items; (ii) statements of plans, objectives, and expectations of Independent Bank Group or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are based on Independent Bank Group’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Independent Bank Group’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national, and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; (2) volatility and disruption in national and international financial markets; (3) government intervention in the U.S. financial system, whether through changes in the discount rate or money supply or otherwise; (4) changes in the level of nonperforming assets and charge-offs; (5) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (6) adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; (7) inflation, deflation, changes in market interest rates, developments in the securities market, and monetary fluctuations; (8) the timely development and acceptance of new products and services and perceived overall value of these products and services by customers; (9) changes in consumer spending, borrowings, and savings habits; (10) technological changes; (11) the ability to increase market share and control expenses; (12) changes in the competitive environment among banks, bank holding companies, and other financial service providers; (13) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply; (14) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; (15) the costs and effects of legal and regulatory developments including the resolution of legal proceedings; and (16) our success at managing the risks involved in the foregoing items and (17) the other factors that are described in the Company’s Quarterly Report on Form 10-Q for the quarters ended September 30, 2016, June 30, 2016 and March 31, 2016, the Annual Report on Form 10-K filed on February 25, 2016, under the heading “Risk Factors”, and other reports and statements filed by the Company with the SEC. Any forward-looking statement made by the Company in this release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. These measures and ratios include “core earnings”, “tangible book value”, “tangible book value per common share”, “core efficiency ratio”, “Tier 1 capital to average assets”, “Tier 1 capital to risk weighted assets”, “tangible common equity to tangible assets”, “net interest margin excluding purchase accounting accretion”, "return on tangible equity", “adjusted return on average assets” and “adjusted return on average equity” and are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States. We consider the use of select non-GAAP financial measures and ratios to be useful for financial operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non- GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
We believe that these measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however we acknowledge that our financial measures have a number of limitations relative to GAAP financial measures. Certain non-GAAP financial measures exclude items of income, expenditures, expenses, assets, or liabilities, including provisions for loan losses and the effect of goodwill, core deposit intangibles and income from accretion on acquired loans arising from purchase accounting adjustments, that we believe cause certain aspects of our results of operations or financial condition to be not indicative of our primary operating results. All of these items significantly impact our financial statements. Additionally, the items that we exclude in our adjustments are not necessarily consistent with the items that our peers may exclude from their results of operations and key financial measures and therefore may limit the comparability of similarly named financial measures and ratios. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non- GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statements tables.
Independent Bank Group, Inc. and Subsidiaries
Consolidated Financial Data
Three Months Ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015
(Dollars in thousands, except for share data)
(Unaudited)
| As of and for the quarter ended | |||||||||||||||||||
| December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||
| Selected Income Statement Data | |||||||||||||||||||
| Interest income | $ | 53,904 | $ | 52,740 | $ | 51,941 | $ | 51,464 | $ | 47,414 | |||||||||
| Interest expense | 7,378 | 7,003 | 6,058 | 5,804 | 5,263 | ||||||||||||||
| Net interest income | 46,526 | 45,737 | 45,883 | 45,660 | 42,151 | ||||||||||||||
| Provision for loan losses | 2,197 | 2,123 | 2,123 | 2,997 | 1,970 | ||||||||||||||
| Net interest income after provision for loan losses | 44,329 | 43,614 | 43,760 | 42,663 | 40,181 | ||||||||||||||
| Noninterest income | 5,224 | 4,932 | 4,929 | 4,470 | 4,254 | ||||||||||||||
| Noninterest expense | 27,361 | 26,887 | 31,023 | 28,519 | 28,527 | ||||||||||||||
| Income tax expense | 7,417 | 7,155 | 5,857 | 6,162 | 5,347 | ||||||||||||||
| Net income | 14,775 | 14,504 | 11,809 | 12,452 | 10,561 | ||||||||||||||
| Preferred stock dividends | — | — | — | 8 | 60 | ||||||||||||||
| Net income available to common shareholders | 14,775 | 14,504 | 11,809 | 12,444 | 10,501 | ||||||||||||||
| Core net interest income (1) | 46,475 | 45,621 | 45,618 | 44,327 | 41,635 | ||||||||||||||
| Core Pre-Tax Pre-Provision Earnings (1) | 25,540 | 24,253 | 22,713 | 21,590 | 18,875 | ||||||||||||||
| Core net income(1) | 15,541 | 14,819 | 13,764 | 12,438 | 11,377 | ||||||||||||||
| Per Share Data (Common Stock) | |||||||||||||||||||
| Earnings: | |||||||||||||||||||
| Basic | $ | 0.79 | $ | 0.78 | $ | 0.64 | $ | 0.67 | $ | 0.58 | |||||||||
| Diluted | 0.79 | 0.78 | 0.64 | 0.67 | 0.58 | ||||||||||||||
| Core earnings: | |||||||||||||||||||
| Basic (1) | 0.83 | 0.80 | 0.75 | 0.67 | 0.63 | ||||||||||||||
| Diluted (1) | 0.83 | 0.80 | 0.74 | 0.67 | 0.63 | ||||||||||||||
| Dividends | 0.10 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
| Book value | 35.63 | 34.79 | 34.08 | 33.38 | 32.79 | ||||||||||||||
| Tangible book value (1) | 21.19 | 20.03 | 19.28 | 18.54 | 17.85 | ||||||||||||||
| Common shares outstanding | 18,870,312 | 18,488,628 | 18,475,978 | 18,461,480 | 18,399,194 | ||||||||||||||
| Weighted average basic shares outstanding (4) | 18,613,975 | 18,478,289 | 18,469,182 | 18,444,284 | 17,965,055 | ||||||||||||||
| Weighted average diluted shares outstanding (4) | 18,716,614 | 18,568,622 | 18,547,074 | 18,528,031 | 18,047,960 | ||||||||||||||
| Selected Period End Balance Sheet Data | |||||||||||||||||||
| Total assets | $ | 5,852,801 | $ | 5,667,195 | $ | 5,446,797 | $ | 5,261,967 | $ | 5,055,000 | |||||||||
| Cash and cash equivalents | 505,027 | 589,600 | 436,605 | 356,526 | 293,279 | ||||||||||||||
| Securities available for sale | 316,435 | 267,860 | 287,976 | 302,650 | 273,463 | ||||||||||||||
| Loans, held for sale | 9,795 | 7,097 | 13,942 | 8,515 | 12,299 | ||||||||||||||
| Loans, held for investment | 4,572,771 | 4,360,690 | 4,251,457 | 4,130,496 | 3,989,405 | ||||||||||||||
| Allowance for loan losses | 31,591 | 29,575 | 30,916 | 29,984 | 27,043 | ||||||||||||||
| Goodwill and core deposit intangible | 272,496 | 272,988 | 273,480 | 273,972 | 275,000 | ||||||||||||||
| Other real estate owned | 1,972 | 2,083 | 1,567 | 1,745 | 2,168 | ||||||||||||||
| Noninterest-bearing deposits | 1,117,927 | 1,143,479 | 1,107,620 | 1,070,611 | 1,071,656 | ||||||||||||||
| Interest-bearing deposits | 3,459,182 | 3,273,014 | 3,100,785 | 3,101,341 | 2,956,623 | ||||||||||||||
| Borrowings (other than junior subordinated debentures) | 568,045 | 577,974 | 578,169 | 444,745 | 371,283 | ||||||||||||||
| Junior subordinated debentures | 18,147 | 18,147 | 18,147 | 18,147 | 18,147 | ||||||||||||||
| Series A Preferred Stock | — | — | — | — | 23,938 | ||||||||||||||
| Total stockholders' equity | 672,365 | 643,253 | 629,628 | 616,258 | 603,371 | ||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Consolidated Financial Data
Three Months Ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015
(Dollars in thousands, except for share data)
(Unaudited)
| As of and for the quarter ended | ||||||||||||||
| December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||
| Selected Performance Metrics | ||||||||||||||
| Return on average assets | 1.03 | % | 1.04 | % | 0.88 | % | 0.95 | % | 0.86 | % | ||||
| Return on average equity (2) | 8.93 | 9.04 | 7.60 | 8.10 | 7.28 | |||||||||
| Return on tangible equity (2) (5) | 15.24 | 15.80 | 13.52 | 14.57 | 13.37 | |||||||||
| Adjusted return on average assets (1) | 1.08 | 1.07 | 1.03 | 0.95 | 0.93 | |||||||||
| Adjusted return on average equity (1) (2) | 9.39 | 9.24 | 8.86 | 8.09 | 7.89 | |||||||||
| Adjusted return on tangible equity (1) (2) (5) | 16.03 | 16.15 | 15.76 | 14.57 | 14.49 | |||||||||
| Net interest margin | 3.59 | 3.66 | 3.96 | 4.08 | 3.96 | |||||||||
| Core net interest margin (3) | 3.58 | 3.65 | 3.94 | 3.96 | 3.91 | |||||||||
| Efficiency ratio | 52.87 | 53.06 | 61.05 | 56.89 | 61.47 | |||||||||
| Core efficiency ratio (1) | 50.60 | 52.07 | 55.05 | 55.68 | 58.75 | |||||||||
| Credit Quality Ratios | ||||||||||||||
| Nonperforming assets to total assets | 0.34 | % | 0.23 | % | 0.34 | % | 0.62 | % | 0.36 | % | ||||
| Nonperforming loans to total loans | 0.39 | 0.26 | 0.40 | 0.72 | 0.37 | |||||||||
| Nonperforming assets to total loans and other real estate | 0.43 | 0.30 | 0.44 | 0.79 | 0.45 | |||||||||
| Allowance for loan losses to non-performing loans | 177.06 | 264.42 | 179.97 | 100.35 | 181.99 | |||||||||
| Allowance for loan losses to total loans | 0.69 | 0.68 | 0.73 | 0.73 | 0.68 | |||||||||
| Net charge-offs to average loans outstanding (annualized) | 0.02 | 0.32 | 0.11 | 0.01 | — | |||||||||
| Capital Ratios | ||||||||||||||
| Estimated common equity tier 1 capital to risk-weighted assets (1) | 8.20 | % | 7.92 | % | 7.89 | % | 7.92 | % | 7.94 | % | ||||
| Estimated tier 1 capital to average assets | 7.82 | 7.46 | 7.42 | 7.36 | 8.28 | |||||||||
| Estimated tier 1 capital to risk-weighted assets (1) | 8.55 | 8.29 | 8.27 | 8.32 | 8.92 | |||||||||
| Estimated total capital to risk-weighted assets | 11.38 | 11.24 | 11.35 | 10.47 | 11.14 | |||||||||
| Total stockholders' equity to total assets | 11.49 | 11.35 | 11.56 | 11.71 | 11.94 | |||||||||
| Tangible common equity to tangible assets (1) | 7.17 | 6.86 | 6.88 | 6.86 | 6.87 | |||||||||
| (1) Non-GAAP financial measures. See reconciliation. | ||||||||||||||
| (2) Excludes average balance of Series A preferred stock. | ||||||||||||||
| (3) Excludes income recognized on acquired loans of $51, $116, $265, $1,333 and $516, respectively. | ||||||||||||||
| (4) Total number of shares includes participating shares (those with dividend rights). | ||||||||||||||
| (5) Excludes average balance of goodwill and net core deposit intangibles. | ||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Annual Selected Financial Information
Years Ended December 31, 2016 and 2015
(Unaudited)
| Years Ended December 31, | |||||||
| 2016 | 2015 | ||||||
| Per Share Data | |||||||
| Net income - basic | $ | 2.89 | $ | 2.23 | |||
| Net income - diluted | 2.88 | 2.21 | |||||
| Cash dividends | 0.34 | 0.32 | |||||
| Book value | 35.63 | 32.79 | |||||
| Outstanding Shares | |||||||
| Period-end shares | 18,870,312 | 18,399,194 | |||||
| Weighted average shares - basic | 18,501,663 | 17,321,513 | |||||
| Weighted average shares - diluted | 18,588,309 | 17,406,108 | |||||
| Selected Annual Ratios | |||||||
| Return on average assets | 0.98 | % | 0.88 | % | |||
| Return on average equity | 8.42 | 7.13 | |||||
| Net interest margin | 3.81 | 4.05 | |||||
Independent Bank Group, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months and Years Ended December 31, 2016 and 2015
(Dollars in thousands)
(Unaudited)
| Three months ended December 31, | Years ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 52,055 | $ | 46,154 | $ | 203,577 | $ | 169,504 | ||||||||
| Interest on taxable securities | 614 | 615 | 2,681 | 2,168 | ||||||||||||
| Interest on nontaxable securities | 479 | 459 | 1,768 | 1,783 | ||||||||||||
| Interest on interest-bearing deposits and other | 756 | 186 | 2,023 | 572 | ||||||||||||
| Total interest income | 53,904 | 47,414 | 210,049 | 174,027 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 4,452 | 3,230 | 16,075 | 12,024 | ||||||||||||
| Interest on FHLB advances | 1,057 | 834 | 4,119 | 3,077 | ||||||||||||
| Interest on repurchase agreements and other borrowings | 1,705 | 1,060 | 5,428 | 4,289 | ||||||||||||
| Interest on junior subordinated debentures | 164 | 139 | 621 | 539 | ||||||||||||
| Total interest expense | 7,378 | 5,263 | 26,243 | 19,929 | ||||||||||||
| Net interest income | 46,526 | 42,151 | 183,806 | 154,098 | ||||||||||||
| Provision for loan losses | 2,197 | 1,970 | 9,440 | 9,231 | ||||||||||||
| Net interest income after provision for loan losses | 44,329 | 40,181 | 174,366 | 144,867 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 1,935 | 1,857 | 7,222 | 6,898 | ||||||||||||
| Mortgage fee income | 1,719 | 1,187 | 7,038 | 5,269 | ||||||||||||
| Gain on sale of loans | — | — | — | 116 | ||||||||||||
| Loss on sale of branch | — | — | (43 | ) | — | |||||||||||
| Gain on sale of other real estate | — | 70 | 57 | 290 | ||||||||||||
| Gain on sale of securities available for sale | — | 44 | 4 | 134 | ||||||||||||
| Gain (loss) on sale of premises and equipment | — | 16 | 32 | (358 | ) | |||||||||||
| Increase in cash surrender value of BOLI | 411 | 271 | 1,348 | 1,077 | ||||||||||||
| Other | 1,159 | 809 | 3,897 | 2,702 | ||||||||||||
| Total noninterest income | 5,224 | 4,254 | 19,555 | 16,128 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 15,118 | 16,549 | 66,762 | 60,541 | ||||||||||||
| Occupancy | 3,982 | 4,004 | 16,101 | 16,058 | ||||||||||||
| Data processing | 1,177 | 1,244 | 4,752 | 3,384 | ||||||||||||
| FDIC assessment | 1,171 | 706 | 3,889 | 2,259 | ||||||||||||
| Advertising and public relations | 332 | 126 | 1,107 | 1,038 | ||||||||||||
| Communications | 468 | 576 | 2,116 | 2,219 | ||||||||||||
| Net other real estate owned expenses (including taxes) | 25 | (15 | ) | 205 | 169 | |||||||||||
| Other real estate impairment | — | — | 106 | 35 | ||||||||||||
| Core deposit intangible amortization | 492 | 453 | 1,964 | 1,555 | ||||||||||||
| Professional fees | 858 | 1,183 | 3,212 | 3,191 | ||||||||||||
| Acquisition expense, including legal | 785 | 627 | 1,517 | 1,420 | ||||||||||||
| Other | 2,953 | 3,074 | 12,059 | 11,329 | ||||||||||||
| Total noninterest expense | 27,361 | 28,527 | 113,790 | 103,198 | ||||||||||||
| Income before taxes | 22,192 | 15,908 | 80,131 | 57,797 | ||||||||||||
| Income tax expense | 7,417 | 5,347 | 26,591 | 19,011 | ||||||||||||
| Net income | $ | 14,775 | $ | 10,561 | $ | 53,540 | $ | 38,786 | ||||||||
Consolidated Balance Sheets
As of December 31, 2016 and 2015
(Dollars in thousands, except share information)
(Unaudited)
| December 31, | |||||||
| Assets | 2016 | 2015 | |||||
| Cash and due from banks | $ | 158,686 | $ | 129,096 | |||
| Interest-bearing deposits in other banks | 336,341 | 164,183 | |||||
| Federal funds sold | 10,000 | — | |||||
| Cash and cash equivalents | 505,027 | 293,279 | |||||
| Certificates of deposit held in other banks | 2,707 | 61,746 | |||||
| Securities available for sale | 316,435 | 273,463 | |||||
| Loans held for sale | 9,795 | 12,299 | |||||
| Loans, net of allowance for loan losses | 4,539,063 | 3,960,809 | |||||
| Premises and equipment, net | 89,898 | 93,015 | |||||
| Other real estate owned | 1,972 | 2,168 | |||||
| Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 26,536 | 14,256 | |||||
| Bank-owned life insurance (BOLI) | 57,209 | 40,861 | |||||
| Deferred tax asset | 9,631 | 5,892 | |||||
| Goodwill | 258,319 | 258,643 | |||||
| Core deposit intangible, net | 14,177 | 16,357 | |||||
| Other assets | 22,032 | 22,212 | |||||
| Total assets | $ | 5,852,801 | $ | 5,055,000 | |||
| Liabilities, Temporary Equity and Stockholders’ Equity | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 1,117,927 | $ | 1,071,656 | |||
| Interest-bearing | 3,459,182 | 2,956,623 | |||||
| Total deposits | 4,577,109 | 4,028,279 | |||||
| FHLB advances | 460,746 | 288,325 | |||||
| Repurchase agreements | — | 12,160 | |||||
| Other borrowings | 107,249 | 68,295 | |||||
| Other borrowings, related parties | 50 | 2,503 | |||||
| Junior subordinated debentures | 18,147 | 18,147 | |||||
| Other liabilities | 17,135 | 9,982 | |||||
| Total liabilities | 5,180,436 | 4,427,691 | |||||
| Commitments and contingencies | |||||||
| Temporary equity: Series A preferred stock | — | 23,938 | |||||
| Stockholders’ equity: | |||||||
| Common stock | 189 | 184 | |||||
| Additional paid-in capital | 555,325 | 530,107 | |||||
| Retained earnings | 117,951 | 70,698 | |||||
| Accumulated other comprehensive income (loss) | (1,100 | ) | 2,382 | ||||
| Total stockholders’ equity | 672,365 | 603,371 | |||||
| Total liabilities, temporary equity and stockholders’ equity | $ | 5,852,801 | $ | 5,055,000 | |||
Independent Bank Group, Inc. and Subsidiaries
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
Three Months Ended December 31, 2016 and 2015
(Dollars in thousands)
(Unaudited)
The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities for the periods presented.
| Three Months Ended December 31, | |||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||
| Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans | $ | 4,423,306 | $ | 52,055 | 4.68 | % | $ | 3,812,493 | $ | 46,154 | 4.80 | % | |||||||||
| Taxable securities | 227,053 | 614 | 1.08 | 177,535 | 615 | 1.37 | |||||||||||||||
| Nontaxable securities | 75,613 | 479 | 2.52 | 73,590 | 459 | 2.47 | |||||||||||||||
| Interest-bearing deposits and other | 428,772 | 756 | 0.70 | 156,073 | 186 | 0.47 | |||||||||||||||
| Total interest-earning assets | 5,154,744 | $ | 53,904 | 4.16 | 4,219,691 | $ | 47,414 | 4.46 | |||||||||||||
| Noninterest-earning assets | 574,416 | 627,684 | |||||||||||||||||||
| Total assets | $ | 5,729,160 | $ | 4,847,375 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Checking accounts | $ | 1,889,725 | $ | 2,081 | 0.44 | % | $ | 1,328,031 | $ | 1,443 | 0.43 | % | |||||||||
| Savings accounts | 153,630 | 64 | 0.17 | 143,289 | 65 | 0.18 | |||||||||||||||
| Money market accounts | 416,653 | 526 | 0.50 | 495,690 | 339 | 0.27 | |||||||||||||||
| Certificates of deposit | 870,489 | 1,781 | 0.81 | 850,789 | 1,383 | 0.64 | |||||||||||||||
| Total deposits | 3,330,497 | 4,452 | 0.53 | 2,817,799 | 3,230 | 0.45 | |||||||||||||||
| FHLB advances | 468,579 | 1,057 | 0.90 | 267,266 | 834 | 1.24 | |||||||||||||||
| Other borrowings | 107,267 | 1,705 | 6.32 | 81,852 | 1,060 | 5.14 | |||||||||||||||
| Junior subordinated debentures | 18,147 | 164 | 3.60 | 18,147 | 139 | 3.04 | |||||||||||||||
| Total interest-bearing liabilities | 3,924,490 | 7,378 | 0.75 | 3,185,064 | 5,263 | 0.66 | |||||||||||||||
| Noninterest-bearing checking accounts | 1,127,379 | 1,050,728 | |||||||||||||||||||
| Noninterest-bearing liabilities | 18,922 | 15,485 | |||||||||||||||||||
| Stockholders’ equity | 658,369 | 596,098 | |||||||||||||||||||
| Total liabilities and equity | $ | 5,729,160 | $ | 4,847,375 | |||||||||||||||||
| Net interest income | $ | 46,526 | $ | 42,151 | |||||||||||||||||
| Interest rate spread | 3.41 | % | 3.80 | % | |||||||||||||||||
| Net interest margin | 3.59 | 3.96 | |||||||||||||||||||
| Average interest earning assets to interest bearing liabilities | 131.35 | 132.48 | |||||||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Consolidated Average Balance Sheet Amounts, Interest Earned and Yield Analysis
Years Ended December 31, 2016 and 2015
(Dollars in thousands)
(Unaudited)
The analysis below shows average interest earning assets and interest bearing liabilities together with the average yield on the interest earning assets and the average cost of the interest bearing liabilities for the periods presented.
| For The Years Ended December 31, | |||||||||||||||||||||
| 2016 | 2015 | ||||||||||||||||||||
| Average Outstanding Balance | Interest | Yield/ Rate | Average Outstanding Balance | Interest | Yield/ Rate | ||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans | $ | 4,234,368 | $ | 203,577 | 4.81 | % | $ | 3,456,128 | $ | 169,504 | 4.90 | % | |||||||||
| Taxable securities | 221,905 | 2,681 | 1.21 | 139,924 | 2,168 | 1.55 | |||||||||||||||
| Nontaxable securities | 74,227 | 1,768 | 2.38 | 69,112 | 1,783 | 2.58 | |||||||||||||||
| Federal funds sold and other | 290,316 | 2,023 | 0.70 | 141,374 | 572 | 0.40 | |||||||||||||||
| Total interest-earning assets | 4,820,816 | $ | 210,049 | 4.36 | 3,806,538 | $ | 174,027 | 4.57 | |||||||||||||
| Noninterest-earning assets | 648,726 | 589,014 | |||||||||||||||||||
| Total assets | $ | 5,469,542 | $ | 4,395,552 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Checking accounts | $ | 1,761,509 | $ | 7,770 | 0.44 | % | $ | 1,297,948 | $ | 5,649 | 0.44 | % | |||||||||
| Savings accounts | 150,223 | 260 | 0.17 | 143,476 | 263 | 0.18 | |||||||||||||||
| Money market accounts | 429,647 | 1,911 | 0.44 | 319,982 | 829 | 0.26 | |||||||||||||||
| Certificates of deposit | 830,964 | 6,134 | 0.74 | 842,087 | 5,283 | 0.63 | |||||||||||||||
| Total deposits | 3,172,343 | 16,075 | 0.51 | 2,603,493 | 12,024 | 0.46 | |||||||||||||||
| FHLB advances | 465,010 | 4,119 | 0.89 | 225,934 | 3,077 | 1.36 | |||||||||||||||
| Other borrowings | 87,943 | 5,428 | 6.17 | 78,074 | 4,289 | 5.49 | |||||||||||||||
| Junior subordinated debentures | 18,147 | 621 | 3.42 | 18,147 | 539 | 2.97 | |||||||||||||||
| Total interest-bearing liabilities | 3,743,443 | 26,243 | 0.70 | 2,925,648 | 19,929 | 0.68 | |||||||||||||||
| Noninterest-bearing checking accounts | 1,076,340 | 895,789 | |||||||||||||||||||
| Noninterest-bearing liabilities | 13,895 | 9,688 | |||||||||||||||||||
| Stockholders’ equity | 635,864 | 564,427 | |||||||||||||||||||
| Total liabilities and equity | $ | 5,469,542 | $ | 4,395,552 | |||||||||||||||||
| Net interest income | $ | 183,806 | $ | 154,098 | |||||||||||||||||
| Interest rate spread | 3.66 | % | 3.89 | % | |||||||||||||||||
| Net interest margin | 3.81 | 4.05 | |||||||||||||||||||
| Average interest earning assets to interest bearing liabilities | 128.78 | 130.11 | |||||||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Loan Portfolio Composition
As of December 31, 2016 and 2015
(Dollars in thousands)
(Unaudited)
| The following table sets forth loan totals by category as of the dates presented: | ||||||||||||||
| December 31, 2016 | December 31, 2015 | |||||||||||||
| Amount | % of Total | Amount | % of Total | |||||||||||
| Commercial | $ | 630,805 | 13.7 | % | $ | 731,818 | 18.3 | % | ||||||
| Real estate: | ||||||||||||||
| Commercial real estate | 2,459,221 | 53.7 | 1,949,734 | 48.7 | ||||||||||
| Commercial construction, land and land development | 531,481 | 11.6 | 419,611 | 10.5 | ||||||||||
| Residential real estate (1) | 644,340 | 14.1 | 620,289 | 15.5 | ||||||||||
| Single-family interim construction | 235,475 | 5.1 | 187,984 | 4.7 | ||||||||||
| Agricultural | 53,548 | 1.2 | 50,178 | 1.3 | ||||||||||
| Consumer | 27,530 | 0.6 | 41,966 | 1.0 | ||||||||||
| Other | 166 | — | 124 | — | ||||||||||
| Total loans | 4,582,566 | 100.0 | % | 4,001,704 | 100.0 | % | ||||||||
| Deferred loan fees | (2,117 | ) | (1,553 | ) | ||||||||||
| Allowance for losses | (31,591 | ) | (27,043 | ) | ||||||||||
| Total loans, net | $ | 4,548,858 | $ | 3,973,108 | ||||||||||
| (1) Includes loans held for sale at December 31, 2016 and 2015 of $9,795 and $12,299, respectively. | ||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Consolidated Financial Data
Three Months Ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015
(Dollars in thousands, except for share data)
(Unaudited)
| For the Three Months Ended | ||||||||||||||||
| December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||
| Net Interest Income - Reported | (a) | $ | 46,526 | $ | 45,737 | $ | 45,883 | $ | 45,660 | $ | 42,151 | |||||
| Income recognized on acquired loans | (51 | ) | (116 | ) | (265 | ) | (1,333 | ) | (516 | ) | ||||||
| Adjusted Net Interest Income | (b) | 46,475 | 45,621 | 45,618 | 44,327 | 41,635 | ||||||||||
| Provision Expense - Reported | (c) | 2,197 | 2,123 | 2,123 | 2,997 | 1,970 | ||||||||||
| Noninterest Income - Reported | (d) | 5,224 | 4,932 | 4,929 | 4,470 | 4,254 | ||||||||||
| Loss on sale of branch | — | 43 | — | — | — | |||||||||||
| Gain on sale of OREO and repossessed assets | — | (4 | ) | (10 | ) | (48 | ) | (70 | ) | |||||||
| Gain on sale of securities | — | — | (4 | ) | — | (44 | ) | |||||||||
| (Gain) loss on sale of premises and equipment | — | 9 | (3 | ) | (38 | ) | (16 | ) | ||||||||
| Adjusted Noninterest Income | (e) | 5,224 | 4,980 | 4,912 | 4,384 | 4,124 | ||||||||||
| Noninterest Expense - Reported | (f) | 27,361 | 26,887 | 31,023 | 28,519 | 28,527 | ||||||||||
| Senior leadership restructure (6) | — | — | (2,575 | ) | — | — | ||||||||||
| OREO Impairment | — | (51 | ) | — | (55 | ) | — | |||||||||
| IPO related stock grant | (127 | ) | (104 | ) | (156 | ) | (156 | ) | (156 | ) | ||||||
| Acquisition Expense (5) | (1,075 | ) | (384 | ) | (475 | ) | (1,187 | ) | (1,487 | ) | ||||||
| Adjusted Noninterest Expense | (g) | 26,159 | 26,348 | 27,817 | 27,121 | 26,884 | ||||||||||
| Pre-Tax Pre-Provision Income | (a) + (d) - (f) | $ | 24,389 | $ | 23,782 | $ | 19,789 | $ | 21,611 | $ | 17,878 | |||||
| Core Pre-Tax Pre-Provision Income | (b) + (e) - (g) | $ | 25,540 | $ | 24,253 | $ | 22,713 | $ | 21,590 | $ | 18,875 | |||||
| Core Net Income (2) | (b) - (c) + (e) - (g) | $ | 15,541 | $ | 14,819 | $ | 13,764 | $ | 12,438 | $ | 11,377 | |||||
| Reported Efficiency Ratio | (f) / (a + d) | 52.87 | % | 53.06 | % | 61.05 | % | 56.89 | % | 61.47 | % | |||||
| Core Efficiency Ratio | (g) / (b + e) | 50.60 | % | 52.07 | % | 55.05 | % | 55.68 | % | 58.75 | % | |||||
| Adjusted Return on Average Assets (1) | 1.08 | % | 1.07 | % | 1.03 | % | 0.95 | % | 0.93 | % | ||||||
| Adjusted Return on Average Equity (1) | 9.39 | % | 9.24 | % | 8.86 | % | 8.09 | % | 7.89 | % | ||||||
| Adjusted Return on Tangible Equity (1) | 16.03 | % | 16.15 | % | 15.76 | % | 14.57 | % | 14.49 | % | ||||||
| Total Average Assets | $ | 5,729,160 | $ | 5,535,203 | $ | 5,367,935 | $ | 5,242,289 | $ | 4,847,375 | ||||||
| Total Average Stockholders' Equity (3) | $ | 658,369 | $ | 638,355 | $ | 624,981 | $ | 618,059 | $ | 572,160 | ||||||
| Total Average Tangible Stockholders' Equity (3) (4) | $ | 385,635 | $ | 365,127 | $ | 351,263 | $ | 343,418 | $ | 311,549 | ||||||
| (1) Calculated using core net income | ||||||||||||||||
| (2) Assumes actual effective tax rate of 33.4%, 33.0%, 33.2%, 33.1% and 32.7%, respectively. December 31, 2015 tax rate adjusted for effect of non-deductible acquisition expenses. | ||||||||||||||||
| (3) Excludes average balance of Series A preferred stock. | ||||||||||||||||
| (4) Excludes average balance of goodwill and net core deposit intangibles. | ||||||||||||||||
| (5) Acquisition expenses include $290 thousand, $381 thousand, $385 thousand, $548 thousand, and $860 thousand of compensation and bonus expenses in addition to $785 thousand, $3 thousand, $90 thousand, $639 thousand, and $627 thousand of merger-related expenses for the quarters ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively. | ||||||||||||||||
| (6) Includes $1,952 related to the former Houston Region CEO's Separation Agreement. | ||||||||||||||||
Independent Bank Group, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
As of December 31, 2016 and 2015
(Dollars in thousands, except per share information)
(Unaudited)
| Tangible Book Value Per Common Share | |||||||
| December 31, | |||||||
| 2016 | 2015 | ||||||
| Tangible Common Equity | |||||||
| Total common stockholders' equity | $ | 672,365 | $ | 603,371 | |||
| Adjustments: | |||||||
| Goodwill | (258,319 | ) | (258,643 | ) | |||
| Core deposit intangibles, net | (14,177 | ) | (16,357 | ) | |||
| Tangible common equity | $ | 399,869 | $ | 328,371 | |||
| Tangible assets | $ | 5,580,305 | $ | 4,780,000 | |||
| Common shares outstanding | 18,870,312 | 18,399,194 | |||||
| Tangible common equity to tangible assets | 7.17 | % | 6.87 | % | |||
| Book value per common share | $ | 35.63 | $ | 32.79 | |||
| Tangible book value per common share | 21.19 | 17.85 | |||||
| Tier 1 Common and Tier 1 Capital to Risk-Weighted Assets Ratio | |||||||
| December 31, | |||||||
| 2016 | 2015 | ||||||
| Tier 1 Common Equity | |||||||
| Total common stockholders' equity - GAAP | $ | 672,365 | $ | 603,371 | |||
| Adjustments: | |||||||
| Unrealized loss (gain) on available-for-sale securities | 1,100 | (2,382 | ) | ||||
| Goodwill | (258,319 | ) | (258,643 | ) | |||
| Qualifying core deposit intangibles, net | (5,529 | ) | (4,253 | ) | |||
| Tier 1 common equity | $ | 409,617 | $ | 338,093 | |||
| Qualifying restricted core capital elements (junior subordinated debentures) | 17,600 | 17,600 | |||||
| Series A preferred stock | — | 23,938 | |||||
| Tier 1 Equity | $ | 427,217 | $ | 379,631 | |||
| Total Risk-Weighted Assets | $ | 4,996,229 | $ | 4,256,662 | |||
| Estimated tier 1 equity to risk-weighted assets ratio | 8.55 | % | 8.92 | % | |||
| Estimated tier 1 common equity to risk-weighted assets ratio | 8.20 | 7.94 | |||||