Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

FirstSun Capital Bancorp Reports First Quarter 2024 Results

First Quarter 2024 Highlights:

  • Net income of $12.3 million, $0.45 per diluted share (excluding merger costs, $14.6 million, $0.53 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Net interest margin of 3.99%
  • Return on average total assets of 0.64% (excluding merger costs, 0.76%, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Return on average stockholders’ equity of 5.15% (excluding merger costs, 6.11%, see the “Non-GAAP Financial Measures and Reconciliations” below)
  • Loan growth of 1.1% annualized
  • Deposit growth of 4.5% annualized
  • 24.4% noninterest income to total revenue1

FirstSun Capital Bancorp (“FirstSun”) (OTCQX: FSUN) reported net income of $12.3 million for the first quarter of 2024 compared to net income of $26.3 million for the first quarter of 2023. Earnings per diluted share were $0.45 for the first quarter of 2024 compared to $1.03 for the first quarter of 2023. Earnings for the first quarter of 2024 were negatively impacted by $2.3 million of merger costs, net of tax, or $0.08 per diluted share and a $13.1 million loan charge-off, net of tax, or $0.47 per diluted share.

Neal Arnold, FirstSun’s President and Chief Executive Officer, commented, “Our core business remains strong in this difficult banking environment and while we experienced a decline in our results this quarter due to an individual and isolated loan charge-off, we are pleased to have the flexibility to continue to expand our franchise in important markets. Our net interest margin remains very strong at 3.99% this quarter and our overall earnings continue to be favorably impacted by our well diversified business mix, including the balanced level of noninterest income to total revenue at 24.4%.

“We are also pleased to announce that we have onboarded a new C&I banking team in Southern California. We are very excited about the opportunity to grow our clients and business relationships with the entry into the key markets of Southern California. The experience and the relationships of this new C&I team provide for significant expansion of all our lines of business in this large and diverse region.”

First Quarter 2024 Results

Net income totaled $12.3 million, or $0.45 per diluted share, during the first quarter of 2024, compared to $24.0 million, or $0.94 per diluted share, during the prior quarter. Net income in the first quarter of 2024 included $2.3 million in merger costs, net of tax. The return on average total assets was 0.64% in the first quarter of 2024, compared to 1.26% in the prior quarter, and the return on average stockholders’ equity was 5.15% in the first quarter of 2024, compared to 11.19% in the prior quarter. First quarter 2024 merger costs negatively affected return on average total assets by 0.12% and return on average stockholders’ equity by 0.96%.

As previously announced, concurrent with the entry into the merger agreement with HomeStreet, Inc. (“HomeStreet”) on January 16, 2024, we entered into an upfront securities purchase agreement with certain funds managed by Wellington Management Company, LLP, pursuant to which we issued 2,461,538 shares of our common stock in a private placement for $80.0 million that closed on January 17, 2024.

Net Interest Income and Net Interest Margin

Net interest income totaled $70.8 million during the first quarter of 2024, a decrease of $1.3 million compared to the prior quarter. Our net interest margin decreased nine basis points to 3.99% compared to the prior quarter. Results in the first quarter of 2024, compared to the prior quarter, were driven by an increase of nine basis points in the cost of interest-bearing liabilities and a decrease of two basis points in yield on earning assets.

Average loans, including loans held-for-sale, increased by $33.5 million in the first quarter of 2024, compared to the prior quarter. Loan yield decreased by three basis points to 6.48% in the first quarter of 2024, compared to the prior quarter. Loan yield was relatively unchanged as our portfolio mix has remained largely the same. Average interest-bearing deposits decreased $8.0 million in the first quarter of 2024, compared to the prior quarter. Total cost of interest-bearing deposits increased by seven basis points to 3.00% in the first quarter of 2024, compared to the prior quarter, primarily due to overall rising deposit costs as a result of the elevated interest rate environment. Average FHLB borrowings increased $36.6 million in the first quarter of 2024, compared to the prior quarter. The cost of FHLB borrowings decreased by eight basis points to 5.56% in the first quarter of 2024, compared to the prior quarter.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $16.5 million during the first quarter of 2024, an increase of $9.9 million from $6.6 million in the prior quarter, primarily due to a $17.4 million charge-off on a specific customer in our C&I loan portfolio.

Net charge-offs during the first quarter of 2024 were $17.4 million resulting in an annualized ratio of net charge-offs to average loans of 1.11%, compared to net charge-offs of $4.7 million, or an annualized ratio of net-charge offs to average loans of 0.30% in the prior quarter. The allowance for credit losses as a percentage of total loans was 1.27% at March 31, 2024, a decrease of one basis point from the prior quarter.

The ratio of nonperforming assets to total assets was 0.80% at March 31, 2024, compared to 0.85% at December 31, 2023.

Noninterest Income

Noninterest income totaled $22.8 million during the first quarter of 2024, an increase of $5.6 million from the prior quarter. Mortgage banking income increased $4.6 million during the first quarter of 2024, primarily due to an increase in revenue related to net sale gains and fees from mortgage loan originations, including fair value changes in the held-for-sale portfolio and hedging activity, which increased $2.1 million from the prior quarter, and an improvement of $2.4 million in the change in fair value of our MSR asset, net of hedging activity, as compared to the prior quarter.

Other noninterest income increased $0.8 million during the first quarter of 2024, primarily due to an increase in income from BOLI and an increase in the fair value of customer loan swaps. Noninterest income as a percentage of total revenue2 was 24.4%, an increase of 5.1% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $61.8 million during the first quarter of 2024, an increase of $9.5 million from the prior quarter, primarily due to an increase in salary and employee benefits of $7.2 million as a result of higher levels of variable compensation and an increase in payroll taxes. Noninterest expense for the first quarter of 2024 included $2.5 million in merger related expenses. There were no merger related expenses in the prior quarter.

The efficiency ratio for the first quarter of 2024 was 66.05% compared to 58.58% in the prior quarter. The negative impact in the first quarter of 2024 of merger costs to the efficiency ratio was 2.66%.

Tax Rate

The effective tax rate was 19.6% in the first quarter of 2024, compared to 21.0% in the prior quarter.

Loans

Loans were $6.3 billion at March 31, 2024 and December 31, 2023, increasing $17.8 million in the first quarter of 2024, or 1.1% on an annualized basis.

Deposits

Deposits were $6.45 billion at March 31, 2024 compared to $6.37 billion at December 31, 2023, an increase of $71.3 million in the first quarter of 2024, or 4.5% on an annualized basis. Average deposits were $6.35 billion for the first quarter of 2024, compared to $6.46 billion for the prior quarter, a decrease of $103.0 million in the first quarter of 2024, or 6.4% on an annualized basis. Noninterest-bearing deposit accounts represented 23.5% of total deposits at March 31, 2024 and the loan-to-deposit ratio was 97.5% at March 31, 2024.

The ratio of total uninsured deposits to total deposits was estimated to be 32.0% at March 31, 2024, compared to 31.2% at December 31, 2023. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 25.2% at March 31, 2024, compared to 25.1% at December 31, 2023.3

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of March 31, 2024, our common equity tier 1 risk-based capital ratio was 12.54%, total risk-based capital ratio was 14.73% and tier 1 leverage ratio was 11.73%. Book value per common share was $35.15 at March 31, 2024, an increase of $0.01 from December 31, 2023. Tangible book value per common share, a non-GAAP financial measure, was $31.37 at March 31, 2024, an increase of $0.41 from December 31, 2023.

Non-GAAP Financial Measures

This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release:

  • Tangible common stockholders’ equity;
  • Tangible assets;
  • Tangible common stockholders’ equity to tangible assets;
  • Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
  • Tangible book value per common share;
  • Net income excluding merger costs;
  • Return on average total assets excluding merger costs;
  • Return on average stockholders’ equity excluding merger costs;
  • Efficiency ratio excluding merger related expenses;
  • Diluted earnings per share excluding merger related costs; and
  • Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis.

The tables beginning within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release to the most comparable GAAP equivalent.

Subsequent Event

As announced and further described in a separate press release jointly issued by FirstSun and HomeStreet today, FirstSun and HomeStreet have entered into an amendment to their merger agreement.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp, headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank, First National 1870 and Guardian Mortgage. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with a branch network in five states and mortgage capabilities in 43 states. FirstSun had total consolidated assets of $7.8 billion as of March 31, 2024.

First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com, SunflowerBank.com, FirstNational1870.com or GuardianMortgageOnline.com.

____________________

1 Total revenue is net interest income plus noninterest income.

2 Total revenue is net interest income plus noninterest income.

3 Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.

Summary Data:

 

As of and for the quarter ended

($ in thousands, except per share amounts)

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Net interest income

$

70,806

 

 

$

72,069

 

 

$

74,117

 

Provision for credit losses

 

16,500

 

 

 

6,575

 

 

 

3,360

 

Noninterest income

 

22,808

 

 

 

17,221

 

 

 

18,931

 

Noninterest expense

 

61,828

 

 

 

52,308

 

 

 

56,266

 

Income before income taxes

 

15,286

 

 

 

30,407

 

 

 

33,422

 

Provision for income taxes

 

2,990

 

 

 

6,393

 

 

 

7,141

 

Net income

 

12,296

 

 

 

24,014

 

 

 

26,281

 

Net income, excluding merger costs (1)

 

14,592

 

 

 

24,014

 

 

 

26,281

 

Diluted earnings per share

$

0.45

 

 

$

0.94

 

 

$

1.03

 

Diluted earnings per share, excluding merger costs (1)

$

0.53

 

 

$

0.94

 

 

$

1.03

 

Return on average total assets

 

0.64

%

 

 

1.26

%

 

 

1.44

%

Return on average total assets, excluding merger costs (1)

 

0.76

%

 

 

1.26

%

 

 

1.44

%

Return on average stockholders' equity

 

5.15

%

 

 

11.19

%

 

 

13.37

%

Return on average stockholders’ equity, excluding merger costs (1)

 

6.11

%

 

 

11.19

%

 

 

13.37

%

Net interest margin

 

3.99

%

 

 

4.08

%

 

 

4.39

%

Net interest margin (FTE basis) (1)

 

4.06

%

 

 

4.15

%

 

 

4.46

%

Efficiency ratio

 

66.05

%

 

 

58.58

%

 

 

60.47

%

Efficiency ratio, excluding merger related expenses (1)

 

63.39

%

 

 

58.58

%

 

 

60.47

%

Noninterest income to total revenue (2)

 

24.4

%

 

 

19.3

%

 

 

20.3

%

Total assets

$

7,781,601

 

 

$

7,879,724

 

 

$

7,610,456

 

Total loans held-for-sale

 

56,813

 

 

 

54,212

 

 

 

66,255

 

Total loans held-for-investment

 

6,284,868

 

 

 

6,267,096

 

 

 

6,060,975

 

Total deposits

 

6,445,388

 

 

 

6,374,103

 

 

 

5,994,266

 

Total stockholders' equity

 

964,662

 

 

 

877,197

 

 

 

799,050

 

Loan to deposit ratio

 

97.5

%

 

 

98.3

%

 

 

101.1

%

Book value per common share

$

35.15

 

 

$

35.14

 

 

$

32.06

 

Tangible book value per common share (1)

$

31.37

 

 

$

30.96

 

 

$

27.72

 

(1)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

(2)

 

Total revenue is net interest income plus noninterest income.

 

Condensed Consolidated Statements of Income (Unaudited):

 

 

As of and for the quarter ended

($ in thousands, except per share amounts)

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Total interest income

$

110,040

 

$

109,974

 

$

94,903

Total interest expense

 

39,234

 

 

 

37,905

 

 

 

20,786

 

Net interest income

 

70,806

 

 

 

72,069

 

 

 

74,117

 

Provision for credit losses

 

16,500

 

 

 

6,575

 

 

 

3,360

 

Net interest income after provision for credit losses

 

54,306

 

 

 

65,494

 

 

 

70,757

 

Noninterest income:

 

 

 

 

 

Service charges on deposits

 

5,768

 

 

 

5,497

 

 

 

5,015

 

Credit and debit card fees

 

2,803

 

 

 

2,966

 

 

 

2,981

 

Trust and investment advisory fees

 

1,463

 

 

 

1,356

 

 

 

1,461

 

Mortgage banking income, net

 

9,502

 

 

 

4,883

 

 

 

7,429

 

Other noninterest income

 

3,272

 

 

 

2,519

 

 

 

2,045

 

Total noninterest income

22,808

17,221

18,931

Noninterest expense:

 

 

 

 

 

Salaries and benefits

 

37,353

 

 

 

30,158

 

 

 

35,049

 

Occupancy and equipment

 

8,595

 

 

 

8,449

 

 

 

8,355

 

Amortization of intangible assets

 

815

 

 

 

829

 

 

 

1,044

 

Merger related expenses

 

2,489

 

 

 

 

 

 

 

Other noninterest expenses

 

12,576

 

 

 

12,872

 

 

 

11,818

 

Total noninterest expense

 

61,828

 

 

 

52,308

 

 

 

56,266

 

Income before income taxes

 

15,286

 

 

 

30,407

 

 

 

33,422

 

Provision for income taxes

 

2,990

 

 

 

6,393

 

 

 

7,141

 

Net income

$

12,296

 

 

$

24,014

 

 

$

26,281

 

Earnings per share - basic

$

0.46

 

 

$

0.96

 

 

$

1.05

 

Earnings per share - diluted

$

0.45

 

 

$

0.94

 

 

$

1.03

 

 

Condensed Consolidated Balance Sheets as of (Unaudited):

 

($ in thousands)

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Assets

 

 

 

 

 

Cash and cash equivalents

$

383,605

 

 

$

479,362

 

 

$

388,349

 

Securities available-for-sale, at fair value

 

499,078

 

 

 

516,757

 

 

 

532,650

 

Securities held-to-maturity

 

36,640

 

 

 

36,983

 

 

 

38,470

 

Loans held-for-sale, at fair value

 

56,813

 

 

 

54,212

 

 

 

66,255

 

Loans

 

6,284,868

 

 

 

6,267,096

 

 

 

6,060,975

 

Allowance for credit losses

 

(79,829

)

 

 

(80,398

)

 

 

(74,459

)

Loans, net

 

6,205,039

 

 

 

6,186,698

 

 

 

5,986,516

 

Mortgage servicing rights, at fair value

 

78,416

 

 

 

76,701

 

 

 

73,424

 

Premises and equipment, net

 

84,063

 

 

 

84,842

 

 

 

86,430

 

Other real estate owned and foreclosed assets, net

 

4,414

 

 

 

4,100

 

 

 

6,358

 

Goodwill

 

93,483

 

 

 

93,483

 

 

 

93,483

 

Intangible assets, net

 

10,168

 

 

 

10,984

 

 

 

14,762

 

All other assets

 

329,882

 

 

 

335,602

 

 

 

323,759

 

Total assets

$

7,781,601

 

 

$

7,879,724

 

 

$

7,610,456

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Liabilities:

 

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing demand deposit accounts

$

1,517,315

 

 

$

1,530,506

 

 

$

1,764,440

 

Interest-bearing deposit accounts:

 

 

 

 

 

Interest-bearing demand accounts

 

542,184

 

 

 

534,540

 

 

 

238,658

 

Savings and money market accounts

 

2,473,255

 

 

 

2,446,632

 

 

 

2,705,315

 

NOW accounts

 

39,181

 

 

 

56,819

 

 

 

45,192

 

Certificate of deposit accounts

 

1,873,453

 

 

 

1,805,606

 

 

 

1,240,661

 

Total deposits

 

6,445,388

 

 

 

6,374,103

 

 

 

5,994,266

 

Securities sold under agreements to repurchase

 

20,423

 

 

 

24,693

 

 

 

31,645

 

Federal Home Loan Bank advances

 

144,810

 

 

 

389,468

 

 

 

577,285

 

Other borrowings

 

75,445

 

 

 

75,313

 

 

 

80,373

 

Other liabilities

 

130,873

 

 

 

138,950

 

 

 

127,837

 

Total liabilities

 

6,816,939

 

 

 

7,002,527

 

 

 

6,811,406

 

Stockholders' equity:

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

Common stock

 

3

 

 

 

2

 

 

 

2

 

Additional paid-in capital

 

542,582

 

 

 

462,680

 

 

 

461,174

 

Retained earnings

 

469,818

 

 

 

457,522

 

 

 

380,270

 

Accumulated other comprehensive loss, net

 

(47,741

)

 

 

(43,007

)

 

 

(42,396

)

Total stockholders' equity

 

964,662

 

 

 

877,197

 

 

 

799,050

 

Total liabilities and stockholders' equity

$

7,781,601

 

 

$

7,879,724

 

 

$

7,610,456

 

 

Share Data:

 

As of and for the quarter ended

 

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Weighted average common shares outstanding, basic

 

27,019,625

 

 

24,953,764

 

 

24,923,259

Weighted average common shares outstanding, diluted

 

27,628,941

 

 

25,472,017

 

 

25,487,582

Period end common shares outstanding

 

27,442,943

 

 

24,960,639

 

 

24,924,023

Book value per common share

$

35.15

 

$

35.14

 

$

32.06

Tangible book value per common share (1)

$

31.37

 

$

30.96

 

$

27.72

 

(1)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

Consolidated Capital Ratios as of:

 

 

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Stockholders' equity to total assets

12.40

%

 

11.13

%

 

10.50

%

Tangible common stockholders' equity to tangible assets (1)

11.21

%

 

9.94

%

 

9.21

%

Tangible common stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (1) (2)

11.17

%

 

9.90

%

 

9.16

%

Tier 1 leverage ratio

11.73

%

 

10.52

%

 

9.86

%

Common equity tier 1 risk-based capital ratio

12.54

%

 

11.10

%

 

10.11

%

Tier 1 risk-based capital ratio

12.54

%

 

11.10

%

 

10.11

%

Total risk-based capital ratio

14.73

%

 

13.25

%

 

12.19

%

(1)

 

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

(2)

 

Tangible common stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax.

 

Summary of Net Interest Margin:

 

 

 

For the quarter ended

March 31, 2024

 

For the quarter ended

December 31, 2023

 

For the quarter ended

March 31, 2023

(In thousands)

 

Average

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Balance

 

Interest

 

Average

Yield/Rate

Interest Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 

6,313,855

 

 

102,268

 

6.48

%

 

 

6,280,362

 

 

102,151

 

6.51

%

 

 

6,028,989

 

 

88,601

 

5.88

%

Investment securities

 

 

546,960

 

 

 

4,487

 

 

3.28

%

 

 

538,348

 

 

 

4,415

 

 

3.28

%

 

 

570,682

 

 

 

4,164

 

 

2.92

%

Interest-bearing cash and other assets

 

 

239,508

 

 

 

3,285

 

 

5.49

%

 

 

247,978

 

 

 

3,408

 

 

5.50

%

 

 

156,262

 

 

 

2,138

 

 

5.47

%

Total earning assets

 

 

7,100,323

 

 

 

110,040

 

 

6.20

%

 

 

7,066,688

 

 

 

109,974

 

 

6.22

%

 

 

6,755,933

 

 

 

94,903

 

 

5.62

%

Other assets

 

 

548,642

 

 

 

 

 

 

 

563,368

 

 

 

 

 

 

 

553,961

 

 

 

 

 

Total assets

 

$

7,648,965

 

 

 

 

 

 

$

7,630,056

 

 

 

 

 

 

$

7,309,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

$

549,491

 

 

$

4,861

 

 

3.54

%

 

$

510,982

 

 

$

4,403

 

 

3.45

%

 

$

227,170

 

 

$

1,234

 

 

2.17

%

Savings deposits

 

 

421,882

 

 

 

725

 

 

0.69

%

 

 

457,679

 

 

 

1,060

 

 

0.93

%

 

 

470,000

 

 

 

445

 

 

0.38

%

Money market deposits

 

 

2,063,321

 

 

 

9,946

 

 

1.93

%

 

 

2,063,383

 

 

 

9,362

 

 

1.82

%

 

 

2,296,469

 

 

 

5,068

 

 

0.88

%

Certificates of deposits

 

 

1,814,629

 

 

 

20,858

 

 

4.60

%

 

 

1,825,325

 

 

 

20,726

 

 

4.54

%

 

 

1,073,006

 

 

 

7,432

 

 

2.77

%

Total deposits

 

 

4,849,323

 

 

 

36,390

 

 

3.00

%

 

 

4,857,369

 

 

 

35,551

 

 

2.93

%

 

 

4,066,645

 

 

 

14,179

 

 

1.39

%

Repurchase agreements

 

 

21,254

 

 

 

57

 

 

1.06

%

 

 

23,457

 

 

 

62

 

 

1.06

%

 

 

29,672

 

 

 

30

 

 

0.41

%

Total deposits and repurchase agreements

 

 

4,870,577

 

 

 

36,447

 

 

2.99

%

 

 

4,880,826

 

 

 

35,613

 

 

2.92

%

 

 

4,096,317

 

 

 

14,209

 

 

1.39

%

FHLB borrowings

 

 

110,777

 

 

 

1,541

 

 

5.56

%

 

 

74,146

 

 

 

1,045

 

 

5.64

%

 

 

454,081

 

 

 

5,317

 

 

4.68

%

Other long-term borrowings

 

 

75,389

 

 

 

1,246

 

 

6.62

%

 

 

75,249

 

 

 

1,247

 

 

6.62

%

 

 

80,300

 

 

 

1,260

 

 

6.28

%

Total interest-bearing liabilities

 

 

5,056,743

 

 

 

39,234

 

 

3.10

%

 

 

5,030,221

 

 

 

37,905

 

 

3.01

%

 

 

4,630,698

 

 

 

20,786

 

 

1.80

%

Noninterest-bearing deposits

 

 

1,502,707

 

 

 

 

 

 

 

1,597,672

 

 

 

 

 

 

 

1,768,381

 

 

 

 

 

Other liabilities

 

 

134,370

 

 

 

 

 

 

 

143,416

 

 

 

 

 

 

 

124,543

 

 

 

 

 

Stockholders' equity

 

 

955,145

 

 

 

 

 

 

 

858,747

 

 

 

 

 

 

 

786,272

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

7,648,965

 

 

 

 

 

 

$

7,630,056

 

 

 

 

 

 

$

7,309,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

70,806

 

 

 

 

 

 

$

72,069

 

 

 

 

 

 

$

74,117

 

 

 

Net interest spread

 

 

 

 

3.10

%

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

3.82

%

 

 

Net interest margin

 

 

 

 

3.99

%

 

 

 

 

 

 

4.08

%

 

 

 

 

 

 

4.39

%

 

 

Net interest margin (on FTE basis) (2)

 

 

 

 

4.06

%

 

 

 

 

 

 

4.15

%

 

 

 

 

 

 

4.46

%

 

 

(1)

Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.

(2)

Represents a non-GAAP financial measure See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

 

Deposits:

 

($ in thousands)

March 31,

2024

 

December 31,

2023

 

March 31,

2024

vs

December 31,

2023

% change

 

March 31,

2023

 

March 31,

2024

vs

March 31,

2023

% change

Consumer

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

356,732

 

$

360,168

 

(0.95

)%

 

$

399,008

 

(10.60

)%

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

38,625

 

 

 

36,162

 

 

6.81

%

 

 

25,284

 

 

52.76

%

Savings deposits

 

340,086

 

 

 

343,291

 

 

(0.93

)%

 

 

407,173

 

 

(16.48

)%

Money market deposits

 

1,229,239

 

 

 

1,196,645

 

 

2.72

%

 

 

1,296,099

 

 

(5.16

)%

Certificates of deposits

 

1,437,590

 

 

 

1,437,537

 

 

%

 

 

759,726

 

 

89.22

%

Total interest-bearing deposit accounts

 

3,045,540

 

 

 

3,013,635

 

 

1.06

%

 

 

2,488,282

 

 

22.40

%

Total consumer deposits

$

3,402,272

 

 

$

3,373,803

 

 

0.84

%

 

$

2,887,290

 

 

17.84

%

Business

 

 

 

 

 

 

 

 

 

Noninterest bearing deposit accounts

$

1,160,583

 

 

$

1,170,338

 

 

(0.83

)%

 

$

1,365,432

 

 

(15.00

)%

Interest-bearing deposit accounts:

 

 

 

 

 

 

 

 

 

Demand and NOW deposits

 

502,726

 

 

 

555,197

 

 

(9.45

)%

 

 

258,566

 

 

94.43

%

Savings deposits

 

80,226

 

 

 

80,802

 

 

(0.71

)%

 

 

34,229

 

 

134.38

%

Money market deposits

 

823,704

 

 

 

825,811

 

 

(0.26

)%

 

 

942,735

 

 

(12.63

)%

Certificates of deposits

 

97,854

 

 

 

87,407

 

 

11.95

%

 

 

62,248

 

 

57.20

%

Total interest-bearing deposit accounts

 

1,504,510

 

 

 

1,549,217

 

 

(2.89

)%

 

 

1,297,778

 

 

15.93

%

Total business deposits

$

2,665,093

 

 

$

2,719,555

 

 

(2.00

)%

 

$

2,663,210

 

 

0.07

%

Wholesale deposits (1)

$

378,023

 

 

$

280,745

 

 

34.65

%

 

$

443,766

 

 

(14.81

)%

Total deposits

$

6,445,388

 

 

$

6,374,103

 

 

1.12

%

 

$

5,994,266

 

 

7.53

%

(1)

 

Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits.

 

Balance Sheet Ratios:

 

 

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Cash to total assets (1)

4.80

%

 

6.00

%

 

4.60

%

Loan to deposit ratio

97.5

%

 

98.3

%

 

101.1

%

Uninsured deposits to total deposits (2)

32.0

%

 

31.2

%

 

35.8

%

Uninsured and uncollateralized deposits to total deposits (2)

25.2

%

 

25.1

%

 

26.4

%

Wholesale deposits and borrowings to total liabilities (3)

7.7

%

 

9.6

%

 

15.0

%

(1)

 

Cash consists of cash and amounts due from banks and interest-bearing deposits with other financial institutions.

(2)

 

Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated.

(3)

 

Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposits. Wholesale borrowings consist of FHLB overnight and term advances.

 

Loan Portfolio:

 

($ in thousands)

March 31,

2024

 

December 31,

2023

 

March 31,

2024

vs

December 31,

2023

% change

 

March 31,

2023

 

March 31,

2024

vs

March 31,

2023

% change

Commercial and industrial

$

2,480,078

 

$

2,467,688

 

0.5

%

 

$

2,418,771

 

2.5

%

Commercial real estate:

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

836,515

 

 

 

812,235

 

 

3.0

%

 

 

709,977

 

 

17.8

%

Owner occupied

 

642,930

 

 

 

635,365

 

 

1.2

%

 

 

659,999

 

 

(2.6

)%

Construction and land

 

326,447

 

 

 

345,430

 

 

(5.5

)%

 

 

320,193

 

 

2.0

%

Multifamily

 

94,898

 

 

 

103,066

 

 

(7.9

)%

 

 

103,767

 

 

(8.5

)%

Total commercial real estate

 

1,900,790

 

 

 

1,896,096

 

 

0.2

%

 

 

1,793,936

 

 

6.0

%

Residential real estate

 

1,109,676

 

 

 

1,110,610

 

 

(0.1

)%

 

 

1,046,047

 

 

6.1

%

Public Finance

 

579,991

 

 

 

602,913

 

 

(3.8

)%

 

 

597,850

 

 

(3.0

)%

Consumer

 

40,317

 

 

 

36,371

 

 

10.8

%

 

 

40,806

 

 

(1.2

)%

Other

 

174,016

 

 

 

153,418

 

 

13.4

%

 

 

163,565

 

 

6.4

%

Total loans, net of deferred costs, fees, premiums, and discounts

$

6,284,868

 

 

$

6,267,096

 

 

0.3

%

 

$

6,060,975

 

 

3.7

%

 

Asset Quality:

 

 

As of and for the quarter ended

($ in thousands)

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Net charge-offs (recoveries)

$

17,429

 

$

4,743

 

$

54

Allowance for credit losses

$

79,829

 

 

$

80,398

 

 

$

74,459

 

Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due

$

57,599

 

 

$

63,143

 

 

$

32,833

 

Nonperforming assets

$

62,013

 

 

$

67,243

 

 

$

39,191

 

Ratio of net charge-offs (recoveries) to average loans outstanding

 

1.11

%

 

 

0.30

%

 

 

%

Allowance for credit losses to total loans outstanding

 

1.27

%

 

 

1.28

%

 

 

1.23

%

Allowance for credit losses to total nonperforming loans

 

138.59

%

 

 

127.33

%

 

 

226.78

%

Nonperforming loans to total loans

 

0.92

%

 

 

1.01

%

 

 

0.54

%

Nonperforming assets to total assets

 

0.80

%

 

 

0.85

%

 

 

0.51

%

 

 

Non-GAAP Financial Measures and Reconciliations:

 

As of and for the quarter ended

($ in thousands, except share and per share amounts)

March 31,

2024

 

December 31,

2023

 

March 31,

2023

Tangible common stockholders’ equity:

Total common stockholders' equity (GAAP)

$

964,662

 

 

$

877,197

 

 

$

799,050

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(10,168

)

 

 

(10,984

)

 

 

(14,762

)

Total tangible common stockholders' equity (non-GAAP) (1)

$

861,011

 

 

$

772,730

 

 

$

690,805

 

Tangible assets:

Total assets (GAAP)

$

7,781,601

 

 

$

7,879,724

 

 

$

7,610,456

 

Less: Goodwill and other intangible assets:

 

 

 

 

 

Goodwill

 

(93,483

)

 

 

(93,483

)

 

 

(93,483

)

Other intangible assets

 

(10,168

)

 

 

(10,984

)

 

 

(14,762

)

Total tangible assets (non-GAAP)

$

7,677,950

 

 

$

7,775,257

 

 

$

7,502,211

 

Tangible common stockholders’ equity to tangible assets:

Common stockholders' equity to total assets (GAAP)

 

12.40

%

 

 

11.13

%

 

 

10.50

%

Less: Impact of goodwill and other intangible assets

 

(1.19

)%

 

 

(1.19

)%

 

 

(1.29

)%

Tangible common stockholders' equity to tangible assets (non-GAAP) (1)

 

11.21

%

 

 

9.94

%

 

 

9.21

%

Tangible common stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:

Total tangible common stockholders' equity (non-GAAP)

$

861,011

 

 

$

772,730

 

 

$

690,805

 

Less: Net unrealized losses on HTM securities, net of tax

 

(4,236

)

 

 

(3,629

)

 

 

(3,754

)

Total tangible common stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)

$

856,775

 

 

$

769,101

 

 

$

687,051

 

Total tangible assets (non-GAAP)

$

7,677,950

 

 

$

7,775,257

 

 

$

7,502,211

 

Less: Net unrealized losses on HTM securities, net of tax

 

(4,236

)

 

 

(3,629

)

 

 

(3,754

)

Total tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)

$

7,673,714

 

 

$

7,771,628

 

 

$

7,498,457

 

Tangible common stockholders’ equity to tangible assets (non-GAAP)

 

11.21

%

 

 

9.94

%

 

 

9.21

%

Less: Net unrealized losses on HTM securities, net of tax

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.05

)%

Tangible common stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)

 

11.17

%

 

 

9.90

%

 

 

9.16

%

Tangible book value per common share:

Stockholders' equity (GAAP)

$

964,662

 

 

$

877,197

 

 

$

799,050

 

Tangible stockholders' equity (non-GAAP) (1)

$

861,011

 

 

$

772,730

 

 

$

690,805

 

Total common shares outstanding

 

27,442,943

 

 

 

24,960,639

 

 

 

24,924,023

 

Book value per common share (GAAP)

$

35.15

 

 

$

35.14

 

 

$

32.06

 

Tangible book value per common share (non-GAAP)

$

31.37

 

 

$

30.96

 

 

$

27.72

 

Net income excluding merger costs:

Net income (GAAP)

$

12,296

 

 

$

24,014

 

 

$

26,281

 

Add: Merger costs

 

 

 

 

 

Merger related expenses

 

2,489

 

 

 

 

 

 

 

Income tax effect on merger related expenses

 

(193

)

 

 

 

 

 

 

Total merger costs

 

2,296

 

 

 

 

 

 

 

Net income excluding merger costs (non-GAAP)

$

14,592

 

 

$

24,014

 

 

$

26,281

 

 

Return on average total assets excluding merger costs:

Return on average total assets (ROAA) (GAAP)

 

0.64

%

 

 

1.26

%

 

 

1.44

%

Add: Impact of merger costs, net of tax

 

0.12

%

 

 

%

 

 

%

ROAA excluding merger costs (non-GAAP)

 

0.76

%

 

 

1.26

%

 

 

1.44

%

Return on average stockholders’ equity excluding merger costs:

Return on average stockholders' equity (ROAE) (GAAP)

 

5.15

%

 

 

11.19

%

 

 

13.37

%

Add: Impact of merger costs, net of tax

 

0.96

%

 

 

%

 

 

%

ROAE excluding merger costs (non-GAAP)

 

6.11

%

 

 

11.19

%

 

 

13.37

%

Efficiency ratio excluding merger related expenses:

Efficiency ratio (GAAP)

 

66.05

%

 

 

58.58

%

 

 

60.47

%

Less: Impact of merger related expenses

 

(2.66

)%

 

 

%

 

 

%

Efficiency ratio excluding merger related expenses (non-GAAP)

 

63.39

%

 

 

58.58

%

 

 

60.47

%

Diluted earnings per share excluding merger costs:

Diluted earnings per share (GAAP)

$

0.45

 

 

$

0.94

 

 

$

1.03

 

Add: Impact of merger costs, net of tax

 

0.08

 

 

 

 

 

 

 

Diluted earnings per share excluding merger costs (non-GAAP)

$

0.53

 

 

$

0.94

 

 

$

1.03

 

Fully tax equivalent (“FTE”) net interest income and net interest margin on FTE basis:

Net interest income (GAAP)

$

70,806

 

 

$

72,069

 

 

$

74,117

 

Gross income effect of tax exempt income

 

1,318

 

 

 

1,270

 

 

 

1,242

 

FTE net interest income (non-GAAP)

$

72,124

 

 

$

73,339

 

 

$

75,359

 

Average earning assets

$

7,100,323

 

 

$

7,066,688

 

 

$

6,755,933

 

Net interest margin

 

3.99

%

 

 

4.08

%

 

 

4.39

%

Net interest margin on FTE basis (non-GAAP)

 

4.06

%

 

 

4.15

%

 

 

4.46

%

(1)

For all periods presented tangible stockholders’ equity is the same as tangible common stockholders’ equity.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.