Market Overview

Green Bancorp, Inc. Reports Fourth Quarter 2015 and Record Full Year 2015 Earnings

Share:

2015 Fourth Quarter Highlights

  • Fourth quarter 2015 earnings per share (diluted) were $0.07 and excluding one-time acquisition expenses would have been $0.13 per share
  • Net income was $2.6 million and would have been $4.6 million excluding one-time acquisition expenses
  • Pre-tax, pre-provision adjusted net income was $19.7 million for the fourth quarter 2015 compared to $8.8 million in the fourth quarter 2014, a 122.6% increase
  • Completed the merger of Patriot Bancshares, Inc. ("Patriot") on October 1, 2015 and integration is close to complete
  • Recorded $12.5 million in provision for loan losses related to energy which raises the level of allowance for the Company's energy related loans to 6%

2015 Full Year Highlights

  • Full year 2015 earnings per share (diluted) were $0.53 and excluding one-time acquisition expenses would have been $0.67
  • Net income for the year December 31, 2015 was $15.4 million and excluding one-time acquisition expenses would have increased to $19.5 million
  • Loans increased $1.3 billion or 74.0% to $3.1 billion compared with December 31, 2014 with $250 million or 13.9% achieved from organic growth
  • Deposits increased $1.3 billion or 68.0% to $3.1 billion compared with December 31, 2014

HOUSTON, Jan. 29, 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 fourth quarter and year ended December 31, 2015.  The Company reported net income for the quarter of $2.6 million, or $0.07 per diluted common share, compared to net income of $2.0 million or $0.08 per diluted common share reported for the same period in 2014.  Excluding one-time acquisition expenses, net income for the fourth quarter 2015 would have been $4.6 million or $0.13 per diluted common share, compared to $4.8 million or $0.18 per diluted common share reported for the same period in 2014.

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp said, "While the drop in oil prices has resulted in a moderation of growth in the local Houston economy, we continue to experience opportunities for attractively priced loan generation in industries that are not directly impacted by the slowing energy sector.  We have immediately recognized significant bottom-line impact from the Patriot merger and we believe we enter 2016 poised to post strong earnings."

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of Green Bank remarked, "We are very pleased with the merger with Patriot and the integration of the bank, so far.  We have quickly made the necessary personnel decisions and achieved significantly all of the 40% costs saves that we previously outlined."

Results of operations for the quarter ended December 31, 2015

Net income for the quarter ended December 31, 2015 was $2.6 million, compared with $2.0 million for the same period in 2014. Net income per diluted common share was $0.07 for the quarter ended December 31, 2015, compared with $0.08 for the same period in 2014. The increase in net income was principally due to increased interest income resulting from growth in loans offset by the increase in provision for loan losses and noninterest expense due to the Patriot merger.  Excluding the one-time acquisition expenses, net income for the quarter would have been $4.6 million, or $0.13 per diluted common share.  Returns on average assets and average common equity, each on an annualized basis, for the three months ended December 31, 2015 were 0.27% and 2.38%, respectively. Green Bancorp's efficiency ratio, which represents noninterest expense divided by the sum of net interest income and noninterest income, was 54.66% for the three months ended December 31, 2015.  Excluding the impact of one-time acquisition expenses, returns on average assets and average common equity, each on an annualized basis, would have been 0.49% and 4.28%, respectively, and the efficiency ratio would have been 49.96% for the three months ended December 31, 2015.

Net interest income before provision for loan losses for the quarter ended December 31, 2015, was $35.0 million, an increase of $14.7 million, or 72.6%, compared with $20.3 million during the same period in 2014. The increase was primarily due to a 75.7% increase in average loan volume largely driven by the Patriot merger. The net interest margin for the quarter ended December 31, 2015 was 3.92%, compared with 3.92% for the same period in 2014. Average noninterest-bearing deposits for the quarter ended December 31, 2015 were $648.0 million, an increase of $229.3 million compared with the same period in 2014, and an increase of $166.1 million compared to the quarter ended September 30, 2015. Average shareholders' equity for the quarter ended December 31, 2015 was $429.5 million, an increase of $142.9 million compared with the same period in 2014, and an increase of $128.2 million compared to the quarter ended September 30, 2015.

Net interest income before provision for loan losses during the quarter ended December 31, 2015 increased 65.4% or $13.8 million, compared with $21.2 million for the quarter ended September 30, 2015, primarily due to a 58.6% increase in average loan volume primarily driven by the Patriot merger. The net interest margin for the quarter ended December 31, 2015 of 3.92% increased from 3.63% for the quarter ended September 30, 2015.  Increases in noninterest-bearing deposits and shareholders' equity contributed to the improvement in the net interest margin. The increase in net interest margin from the prior quarter was primarily due to higher loan yield resulting from higher discount accretion.  

Noninterest income for the quarter ended December 31, 2015 was $4.3 million, an increase of $2.2 million, or 100.1%, compared with $2.1 million for the same period in 2014. This increase was primarily due to a $772 thousand gain on sale of available-for-sale securities, a $482 thousand increase in customer service fees and a $377 thousand increase in gain on sale of guaranteed portion of loans. When comparing the quarter ended December 31, 2015 to the quarter ended September 30, 2015, noninterest income increased $1.4 million, or 48.9%, from $2.9 million.

Noninterest expense for the quarter ended December 31, 2015 was $21.5 million, an increase of $3.6 million, or 20.1%, compared with $17.9 million for the same period in 2014. The increase was primarily due to increases related to ongoing acquired Patriot operations.  Other increases in noninterest expense were offset by the $2.4 million decrease in one-time acquisition expenses.  When comparing the quarter ended December 31, 2015 to the quarter ended September 30, 2015, noninterest expense increased 49.4%, or $7.1 million, from $14.4 million, primarily due to increases related to ongoing acquired Patriot operations.

Loans held for investment at December 31, 2015 were $3.1 billion, an increase of $1.3 billion, or 74.0%, compared with $1.8 billion at December 31, 2014, primarily due to the Patriot merger, which was finalized at the beginning of the fourth quarter 2015 and continued opportunities for our portfolio bankers to generate new loans and expand existing relationships within our target markets.  Loans held for investment at December 31, 2015 increased $1.1 billion, or 57.9%, from September 30, 2015 primarily due to the Patriot merger.  Excluding loans acquired in the Patriot merger based on the merger date balance, loans increased $67.3 million or 3.4% and $250.4 million or 13.9% from September 30, 2015 and December 31, 2014, respectively.  Average loans held for investment increased 75.7% or $1.3 billion to $3.0 billion for the quarter ended December 31, 2015, compared with $1.7 billion for the same period in 2014. Average loans held for investment for the quarter ended December 31, 2015 increased 58.6% or $1.1 billion from the quarter ended September 30, 2015.

Deposits at December 31, 2015 were $3.1 billion, an increase of $1.3 billion, or 68.0%, compared to December 31, 2014, primarily due to $1.1 billion related to the Patriot merger and $117.4 million increase in our commercial deposits.  Deposits at December 31, 2015 increased $1.2 billion or 59.7% from September 30, 2015 due primarily to the Patriot merger.  Excluding the deposits acquired through the Patriot merger, period-end deposits at December 31, 2015 increased $73.1 million or 3.8% and $168.5 million or 9.1% from September 30, 2015 and December 31, 2014, respectively. Noninterest-bearing deposits at December 31, 2015 were $643.4 million, an increase of $211.4 million, or 48.9%, compared to December 31, 2014 and an increase of $144.3 million, or 28.9%, compared to September 30, 2015.  Average deposits increased 69.8% or $1.2 billion to $3.0 billion for the quarter ended December 31, 2015, compared with the same period of 2014. Average noninterest bearing deposits for the quarter ended December 31, 2015 were $648.0 million, an increase of $229.3 million compared with the same period in 2014, and an increase of $166.1 million compared with the quarter ended September 30, 2015.

Results of operations for the year ended December 31, 2015

Net income for the year ended December 31, 2015 was $15.4 million, compared with $14.7 million for the same period in 2014. Net income per diluted common share was $0.53 for the year ended December 31, 2015, compared with $0.64 for the same period in 2014. The increase in net income was principally due to increased interest income resulting from growth in loans.  The increase was offset by an increase in provision for loan losses and an increase in noninterest expense primarily resulting from the Patriot merger.  Returns on average assets and average common equity, each on an annualized basis, for the year ended December 31, 2015 were 0.58% and 4.68%, respectively. Green Bancorp's efficiency ratio was 60.27% for the year ended December 31, 2015. Excluding the impact of the one-time acquisition expenses, returns on average assets and average common equity, would have been 0.73% and 5.90% and the efficiency ratio would have been 55.83% for the twelve months ended December 31, 2015. 

Net interest income before provision for loan losses for the year ended December 31, 2015, was $97.6 million an increase of $27.4 million, or 39.1%, compared with $70.2 million during the same period in 2014. The increase was primarily due to a 43.4% increase in average loan volume due to organic loan growth, the SharePlus acquisition, the Patriot merger and a 13 basis point decrease in the costs of interest-bearing deposits, partially offset by a 16 basis point decrease in loan yields. The net interest margin for the year ended December 31, 2015 decreased to 3.84%, compared with 3.88% for the same period in 2014. Average noninterest-bearing deposits for the year ended December 31, 2015 were $513.5 million, an increase of $166.2 million compared with the same period in 2014. Average shareholders' equity for the year ended December 31, 2015 was $330.0 million, an increase of $97.1 million compared with the same period in 2014.

Noninterest income for year ended December 31, 2015 was $12.2 million, an increase of $4.1 million, or 51.3%, compared with $8.1 million for the same period in 2014. This increase was primarily due to a $1.3 million increase in customer service fees, a $772 thousand gain on sale of available for sale securities, a $617 thousand increase in gain on sale of the guaranteed portion of certain loans, a $452 thousand increase in loan fees and a $377 thousand increase in gain on sale of held for sale loans.

Noninterest expense for the year ended December 31, 2015, was $66.2 million, an increase of $13.7 million, or 26.2%, compared with $52.4 million for the same period in 2014. The increase in noninterest expense is mainly due to recurring expenses related to the Patriot merger, the SharePlus acquisition, and related to being a public company.

Average loans held for investment increased 43.3% or $648.7 million to $2.1 billion for year ended December 31, 2015, compared with $1.5 billion for the same period in 2014.  Average deposits increased 38.2% or $603.0 million to $2.2 billion for the year ended December 31, 2015, compared with the same period of 2014.

Asset Quality

Nonperforming assets totaled $57.2 million or 1.51% of period end total assets at December 31, 2015, up from $12.0 million or 0.55% of period end total assets at December 31, 2014, and $36.3 million or 1.50% of period end total assets at September 30, 2015. The increases were due primarily to energy-related migration to nonperforming during the third and fourth quarter 2015 and the addition of $10.5 million in real estate acquired through foreclosure that was acquired through the Patriot merger. Accruing loans classified as troubled debt restructures and included in the nonperforming asset totals were $6.0 million at December 31, 2015, compared with $2.3 million at December 31, 2014 and $6.0 million at September 30, 2015.

The allowance for loan losses was 1.05% of total loans at December 31, 2015, compared with 0.87% of total loans at December 31, 2014 and 1.05% of total loans at September 30, 2015.  The increase in the percentage when compared to December 31, 2014 was largely due to an increase in specific reserves.  At December 31, 2015, 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 1.70%.  Further, the allowance for loan losses plus acquired loan net discount to total loans adjusted for acquired loan net discount was 1.85% as of December 31, 2015.

The Company recorded a provision for loan losses of $12.5 million for the quarter ended December 31, 2015 up from the $3.1 million provision for the loan losses recorded for the quarter ended September 30, 2015.  The fourth quarter provision reflects the addition of specific reserves on energy related credits.  The provision for loan losses was $17.9 million for year ended December 31, 2015, compared with $2.7 million for the year ended December 31, 2014.

Net charge offs were $277 thousand for the quarter ended December 31, 2015, compared with net charge offs of $622 thousand for the quarter ended September 30, 2015, and net charge offs of $907 thousand for the quarter ended December 31, 2014. Net charge offs were $522 thousand, or 0.02% of average loans outstanding, for year ended December 31, 2015, compared with net charge offs of $3.4 million for the year ended December 31, 2014.

Acquisition of SP Bancorp, Inc.

On October 17, 2014, Green Bancorp acquired SP Bancorp, Inc. ("SP Bancorp") and its wholly-owned subsidiary, SharePlus Bank ("SharePlus") headquartered in Plano, Texas.  Pursuant to the terms of the merger agreement, we paid $46.4 million in cash for all outstanding shares of SP Bancorp capital stock, which resulted in goodwill of $14.5 million.

Merger with Patriot Bancshares, Inc.

On October 1, 2015, Green Bancorp completed the previously announced merger 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.

Under the terms of the merger agreement, the Company issued 10.4 million shares of Green Bancorp common stock for all outstanding shares of Patriot common stock, including the converted Series D and Series F preferred stock.  In addition, Patriot's $27.3 million Series B and Series C preferred stock were redeemed in connection with the closing.

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.

Capital Management

The Basel III Capital Rules adopted by the federal regulatory authorities in 2013 substantially revised the risk-based capital requirements applicable to Green Bancorp and Green Bank. The Basel III Capital Rules became effective for Green Bancorp on January 1, 2015, subject to a phase-in period for certain provisions. Among other things, the Basel III Capital Rules introduced a new capital measure called "Common Equity Tier 1," which is a comparison of the sum of certain equity capital components to total risk-weighted assets, and revised the risk-weighting approach of the capital ratios with a more risk-sensitive approach that expanded the risk-weighting categories from the previous Basel I derived categories to a much larger and more risk-sensitive number of categories, depending on the nature of the assets.

Conference Call

As previously announced, Green Bancorp will hold a conference call today, January 29, 2016, to discuss its fourth quarter 2015 results at 9:00 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 Fourth Quarter 2015 Earnings Conference Call.  A replay will be available starting at 12:00 pm Eastern Time on January 29, 2016 and can be accessed by dialing 1-877-870-5176, or for international callers, 1-858-384-5517. The passcode for the replay is 13628482.  The replay will be available until 11:59 pm Eastern Time on February 5, 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 web site at www.greenbank.com.  Green Bancorp uses its web site as a channel of distribution for material Company information. Financial and other material information regarding Green Bancorp is routinely posted on the Company's web site 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.

                
                
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014
  (Dollars in thousands)
Period End Balance Sheet Data:               
Cash and cash equivalents $  124,906  $  96,451  $  168,416  $  129,108  $  68,923 
Securities    318,151     249,558     258,882     228,035     238,278 
Other investments    20,986     16,977     10,831     10,000     11,365 
Loans held for sale    384     192     1,287     939     573 
Loans held for investment    3,130,669     1,982,280     1,894,742     1,810,842     1,799,155 
Allowance for loan losses    (32,947)    (20,724)    (18,292)    (17,542)    (15,605)
Goodwill    85,291     30,129     30,129     30,129     30,129 
Core deposit intangibles, net    11,562     3,704     3,852     4,000     4,148 
Real estate acquired through foreclosure    12,122     1,665     4,488     4,863     4,863 
Premises and equipment, net    27,736     24,766     24,773     24,817     25,200 
Other assets    87,297     30,989     29,843     27,474     29,106 
Total assets $  3,786,157  $  2,415,987  $  2,408,951  $  2,252,665  $  2,196,135 
                
Noninterest-bearing deposits $  643,354  $  499,101  $  604,073  $  459,100  $  431,942 
Interest-bearing transaction and savings deposits    1,104,630     792,957     758,123     809,300     777,431 
Certificates and other time deposits    1,352,764     649,082     662,335     663,451     636,340 
Total deposits    3,100,748     1,941,140     2,024,531     1,931,851     1,845,713 
Securities sold under agreements to repurchase    3,073     3,080     9,858     13,012     4,605 
Other borrowed funds    223,265     158,893     67,309     7,323     47,586 
Subordinated debentures    13,187     -     -     -     - 
Other liabilities    16,482     9,645     8,601     6,709     9,826 
Total liabilities    3,356,755     2,112,758     2,110,299     1,958,895     1,907,730 
Shareholders' equity    429,402     303,229     298,652     293,770     288,405 
Total liabilities and equity $  3,786,157  $  2,415,987  $  2,408,951  $  2,252,665  $  2,196,135 


                      
                      
  For the Quarter Ended For the
 Year Ended
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014
  (Dollars in thousands)
Income Statement Data:                     
Interest income:                     
Loans, including fees $ 37,693 $ 22,601 $ 22,252 $ 21,659 $  21,414  $ 104,205 $ 75,121
Securities   1,079   809   838   878    986    3,604   3,993
Other investments   119   111   113   110    111    453   352
Federal funds sold   2   -   -   -    -    2   -
Deposits in financial institutions   104   78   53   55    47    290   139
Total interest income   38,997   23,599   23,256   22,702    22,558    108,554   79,605
                      
Interest expense:                     
Transaction and savings deposits   1,030   696   695   682    684    3,103   2,539
Certificates and other time deposits   2,505   1,651   1,607   1,474    1,553    7,237   6,747
Subordinated debentures   227   -   -   -    -    227   -
Other borrowed funds   228   90   31   30    38    379   142
Total interest expense   3,990   2,437   2,333   2,186    2,275    10,946   9,428
                      
Net interest income   35,007   21,162   20,923   20,516    20,283    97,608   70,177
Provision for loan losses   12,500   3,054   805   1,505    1,250    17,864   2,693
Net interest income after provision for loan losses   22,507   18,108   20,118   19,011    19,033    79,744   67,484
                      
Noninterest income:                     
Customer service fees   1,278   867   917   863    796    3,925   2,655
Loan fees   647   680   671   371    483    2,369   1,917
Gain on sale of available-for-sale securities, net   772   -   -   -    -    772   -
Gain on sale of held for sale loans, net   60   113   157   75    28    405   28
Gain on sale of guaranteed portion of loans, net   971   908   960   645    594    3,484   2,867
Other   548   303   250   131    236    1,232   589
Total noninterest income   4,276   2,871   2,955   2,085    2,137    12,187   8,056
                      
Noninterest expense:                     
Salaries and employee benefits   11,913   8,562   8,878   8,757    8,891    38,110   31,102
Occupancy   2,743   1,332   1,562   1,460    1,585    7,097   5,028
Professional and regulatory fees   1,863   1,988   3,605   1,467    1,612    8,923   5,647
Data processing   1,261   610   583   644    4,173    3,098   5,353
Software license and maintenance   738   352   392   362    418    1,844   1,424
Marketing   331   160   152   148    95    791   654
Loan related   628   185   263   109    220    1,185   523
Real estate acquired by foreclosure, net   352   339   382   13    (30)   1,086   286
Other   1,643   844   761   796    916    4,044   2,416
Total noninterest expense   21,472   14,372   16,578   13,756    17,880    66,178   52,433
                      
Income before income taxes   5,311   6,607   6,495   7,340    3,290    25,753   23,107
Provision for income taxes   2,738   2,528   2,357   2,691    1,243    10,314   8,365
Net income $ 2,573 $ 4,079 $ 4,138 $ 4,649 $  2,047  $ 15,439 $ 14,742


                       
  As of and For the Quarter Ended As of and For the
Year Ended
 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 
  (In thousands, except per share data) 
Per Share Data (Common Stock):                      
Basic earnings per common share $ 0.07 $ 0.16 $ 0.16 $ 0.18 $ 0.08 $ 0.54 $ 0.65 
Diluted earnings per share   0.07   0.15   0.16   0.18   0.08   0.53   0.64 
Book value per common share   11.67   11.54   11.37   11.22   11.02   11.67   11.02 
Tangible book value per common share (1)   9.04   10.25   10.08   9.92   9.71   9.04   9.71 
                       
Common Stock Data:                      
Shares outstanding at period end   36,788   26,277   26,270   26,176   26,176   36,788   26,176 
Weighted average basic shares outstanding for the period   36,623   26,274   26,199   26,176   26,171   28,839   22,625 
Weighted average diluted shares outstanding for the period   36,854   26,551   26,518   26,359   26,592   29,096   22,915 
                       
Selected Performance Metrics:                      
Return on average assets   0.27%  0.68%  0.73%  0.85%  0.38%  0.58%  0.79%
Return on average equity   2.38   5.37   5.60   6.46   2.83   4.68   6.33 
Efficiency ratio   54.66   59.80   69.43   60.86   79.75   60.27   67.02 
Loans to deposits ratio   100.96   102.12   93.59   93.74   97.48   100.96   97.48 
Noninterest expense to average assets   2.27   2.38   2.93   2.53   3.32   2.49   2.80 
                       
Capital Ratios:                      
Average shareholders' equity to average total assets   11.4%  12.6%  13.0%  13.2%  13.4%  12.4%  12.4%
Tier 1 capital to average assets (leverage)   9.2   12.1   11.9   12.0   12.1   9.2   12.1 
Common equity tier 1 capital(2)   9.6   12.2   12.5   13.0  N/A   9.6  N/A 
Tier 1 capital to risk-weighted assets   9.6   12.2   12.5   13.0   13.1   9.6   13.1 
Total capital to risk-weighted assets   10.5   13.2   13.4   13.9   14.0   10.5   14.0 
Tangible common equity to tangible assets (1)   9.0   11.3   11.1   11.7   11.8   9.0   11.8 
                       
Selected Other Metrics:                      
Number of full time equivalent employees   353   258   266   267   272   353   272 
Number of portfolio bankers   63   52   55   53   53   63   53 
Period end actual loan portfolio average per portfolio banker $ 46,822 $ 36,601 $ 33,191 $ 32,721 $ 31,500 $ 46,822 $ 31,500 
Period end target loan portfolio average per portfolio banker $ 60,584 $ 52,299 $ 47,348 $ 46,679 $ 44,698 $ 60,584 $ 44,698 
Estimated remaining capacity to target loan portfolio size   22.72%  30.02%  29.90%  29.90%  29.53%  22.72%  29.53%
_______________________________________                      
(1) Refer to "Notes to Financial Highlights" at the end of this Earnings Release for a reconciliation of this non-GAAP financial measure.
(2) Common equity tier 1 capital ratio is a new ratio required under the Basel III Capital Rules effective January 1, 2015.



                            
  For the Quarter Ended 
  December 31, 2015  September 30, 2015  December 31, 2014 
  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 $  3,043,384  $ 37,693  4.91% $  1,918,999  $ 22,601  4.67% $  1,732,607  $ 21,414  4.90%
Securities    340,381    1,079  1.26     257,930    809  1.24     245,504    986  1.59 
Other investments    22,530    119  2.10     15,909    111  2.77     11,322    111  3.89 
Federal funds sold    5,001    2  0.16     959    -  -     713    -  - 
Interest earning deposits in financial institutions    130,396    104  0.32     117,465    78  0.26     61,929    47  0.30 
Total interest-earning assets    3,541,692    38,997  4.37%    2,311,262    23,599  4.05%    2,052,075    22,558  4.36%
                            
Allowance for loan losses    (20,726)          (18,892)          (15,686)      
Noninterest-earning assets    240,084           103,186           98,425       
Total assets $  3,761,050        $  2,395,556        $  2,134,814       
                            
Liabilities and Shareholders' Equity                           
Interest-bearing liabilities:                           
Interest-bearing demand and savings deposits $  1,088,605  $ 1,030  0.38% $  769,454  $ 696  0.36% $  741,918  $ 684  0.37%
Certificates and other time deposits    1,290,885    2,505  0.77     651,334    1,651  1.01     622,636    1,553  0.99 
Securities sold under agreements to repurchase    4,362    2  0.18     7,483    3  0.16     5,654    2  0.14 
Other borrowed funds    270,149    226  0.33     174,531    87  0.20     49,460    36  0.29 
Subordinated debentures    12,982    227  6.94     -    -  -     -    -  - 
Total interest-bearing liabilities    2,666,983    3,990  0.60%    1,602,802    2,437  0.60%    1,419,668    2,275  0.64%
                            
Noninterest-bearing liabilities:                           
Noninterest-bearing demand deposits    647,997           481,947           418,741       
Other liabilities    16,543           9,437           9,745       
Total liabilities    3,331,523           2,094,186           1,848,154       
Shareholders' equity    429,527           301,370           286,660       
Total liabilities and  shareholders' equity $  3,761,050        $  2,395,556        $  2,134,814       
                            
Net interest rate spread         3.77%        3.45%        3.73%
Net interest income and margin(1)     $ 35,007  3.92%    $ 21,162  3.63%    $ 20,283  3.92%
_______________________________                       
(1) Net interest margin is equal to net interest income divided by interest-earning assets.


                   
  For the Year Ended December 31,  
  2015  2014 
  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 $  2,148,268  $ 104,205  4.85% $  1,498,450  $ 75,121  5.01%
Securities    274,780    3,604  1.31     251,731    3,993  1.59 
Other investments    14,740    453  3.07     9,573    352  3.68 
Federal funds sold    1,911    2  0.10     719    -  - 
Interest earning deposits in financial institutions    102,719    290  0.28     50,291    139  0.28 
Total interest-earning assets    2,542,418    108,554  4.27%    1,810,764    79,605  4.40%
                   
Allowance for loan losses    (18,462)          (15,916)      
Noninterest-earning assets    138,963           78,315       
Total assets $  2,662,919        $  1,873,163       
                   
Liabilities and Shareholders' Equity                  
Interest-bearing liabilities:                  
Interest-bearing demand and savings deposits $  855,869  $ 3,103  0.36% $  646,564  $ 2,539  0.39%
Certificates and other time deposits    812,255    7,237  0.89     584,771    6,747  1.15 
Securities sold under agreements to repurchase    9,649    15  0.16     5,870    8  0.14 
Other borrowed funds    128,135    364  0.28     48,503    134  0.28 
Subordinated debentures    3,272    227  6.94     -    -  - 
Total interest-bearing liabilities    1,809,180    10,946  0.61%    1,285,708    9,428  0.73%
                   
Noninterest-bearing liabilities:                  
Noninterest-bearing demand deposits    513,453           347,268       
Other liabilities    10,279           7,319       
Total liabilities    2,332,912           1,640,295       
Shareholders' equity    330,007           232,868       
Total liabilities and  shareholders' equity $  2,662,919        $  1,873,163       
                   
Net interest rate spread         3.66%        3.66%
Net interest income and margin(1)     $ 97,608  3.84%    $ 70,177  3.88%
___________________________________                  
(1) Net interest margin is equal to net interest income divided by interest-earning assets.


Yield Trend

            
            
  For the Quarter Ended 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
            
Average yield on interest-earning assets:           
Loans, including fees  4.91% 4.67% 4.86% 4.92% 4.90%
Securities  1.26  1.24  1.27  1.51  1.59 
Other investments  2.10  2.77  4.56  4.28  3.89 
Federal funds sold  0.16  -  -  -  - 
Interest-earning deposits in financial institutions  0.32  0.26  0.28  0.26  0.30 
Total interest-earning assets  4.37% 4.05% 4.27% 4.35% 4.36%
            
Average rate on interest-bearing liabilities:           
Interest bearing transaction and savings  0.38% 0.36% 0.36% 0.35% 0.37%
Certificates and other time deposits  0.77  1.01  0.97  0.94  0.99 
Other borrowed funds  0.33  0.20  0.30  0.24  0.27 
Subordinated debentures  6.94  -  -  -  - 
Total interest-bearing liabilities  0.60% 0.60% 0.63% 0.60% 0.64%
            
Net interest rate spread  3.77% 3.45% 3.63% 3.75% 3.73%
Net interest margin (1)  3.92% 3.63% 3.84% 3.93% 3.92%
____________________________________           
(1) Net interest margin is equal to net interest income divided by interest-earning assets.

Supplemental Yield Trend

            
            
  For the Quarter Ended 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
            
Average yield on loans, excluding fees (2)  4.22% 4.37% 4.47% 4.50% 4.48%
Average cost of interest-bearing deposits  0.59  0.66  0.64  0.61  0.65 
Average cost of total deposits, including noninterest-bearing  0.46  0.49  0.48  0.47  0.50 
______________________________________________           
(2) Average yield on loans, excluding fees is equal to loan interest income divided by average loan principal.


Portfolio Composition

                               
  Dec 31, 2015  Sep 30, 2015  Jun 30, 2015  Mar 31, 2015  Dec 31, 2014 
                               
  (Dollars in thousands) 
Period End Balances                              
                               
Commercial & industrial $ 1,206,452  38.5% $ 820,337  41.4% $ 795,483  42.0% $ 744,380  41.1% $ 788,410  43.8%
Real Estate:                              
Owner occupied commercial   353,889  11.3    183,224  9.2    176,453  9.2    166,604  9.1    163,592  9.1 
Commercial   904,115  28.9    483,628  24.4    383,863  20.3    367,071  20.3    339,006  18.8 
Construction, land & land development   358,813  11.5    252,206  12.8    290,469  15.3    273,125  15.1    240,666  13.4 
Residential mortgage   293,483  9.4    230,796  11.6    234,026  12.4    249,591  13.8    257,066  14.3 
Consumer and Other   13,917  0.4    12,089  0.6    14,448  0.8    10,071  0.6    10,415  0.6 
Total loans held for investment $ 3,130,669  100.0% $ 1,982,280  100.0% $ 1,894,742  100.0% $ 1,810,842  100.0% $ 1,799,155  100.0%
                               
Deposits:                              
Noninterest-bearing $ 643,354  20.7% $ 499,101  25.7% $ 604,073  29.9% $ 459,100  23.8% $ 431,942  23.4%
Interest-bearing transaction   172,737  5.6    132,604  6.8    133,584  6.6    142,442  7.4    134,448  7.3 
Money market   793,808  25.6    604,912  31.2    567,613  28.0    607,033  31.4    581,346  31.5 
Savings   138,085  4.5    55,441  2.9    56,926  2.8    59,825  3.1    61,637  3.3 
Certificates and other time deposits   1,352,764  43.6    649,082  33.4    662,335  32.7    663,451  34.3    636,340  34.5 
Total deposits $ 3,100,748  100.0% $ 1,941,140  100.0% $ 2,024,531  100.0% $ 1,931,851  100.0 % $ 1,845,713  100.0 %
                               
Loan to Deposit Ratio   101.0%     102.1%     93.6%     93.7%     97.5%  


Asset Quality

                       
  As of and for the Quarter Ended As of and for the
 Year Ended
 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 
  (Dollars in thousands) 
Nonperforming Assets:                      
Nonaccrual loans $  37,541  $  22,762  $  4,402  $  3,789  $  2,127  $  37,541  $  2,127  
Accruing loans 90 or more days past due    52     4,233     -     7     16     52     16  
Restructured loans—nonaccrual    1,464     1,623     1,712     3,113     2,717     1,464     2,717  
Restructured loans—accrual    5,988     6,048     681     2,390     2,257     5,988     2,257  
Total nonperforming loans    45,045     34,666     6,795     9,299     7,117     45,045     7,117  
Real estate acquired through foreclosure    12,122     1,665     4,488     4,863     4,863     12,122     4,863  
Total nonperforming assets $  57,167  $  36,331  $  11,283  $  14,162  $  11,980  $  57,167  $  11,980  
                       
Charge-offs:                      
Commercial and industrial $  (362) $  (981) $  (1,227) $  (77) $  (960) $  (2,647) $  (2,927) 
Residential mortgage    (22)    (41)    -     -     -     (63)    -  
Other consumer    (17)    (12)    (12)    (105)    (10)    (146)    (1,297) 
Total charge-offs    (401)    (1,034)    (1,239)    (182)    (970)    (2,856)    (4,224) 
                       
Recoveries:                      
Commercial and industrial $  94  $  331  $  1,163  $  597  $  53  $  2,185  $  118  
Owner occupied commercial real estate    -     -     -     -     -     -     14  
Commercial real estate    1     75     -     1     -     77     1  
Construction, land & land development    5     -     -     -     -     5     -  
Residential mortgage    14     4     6     12     5     36     20  
Other consumer    10     2     15     4     5     31     622  
Total recoveries    124     412     1,184     614     63     2,334     775  
                       
Net recoveries (charge-offs) $  (277) $  (622) $  (55) $  432  $  (907) $  (522) $  (3,449) 
                       
Allowance for loan losses at end of period $  32,947  $  20,724  $  18,292  $  17,542  $  15,605  $  32,947  $  15,605  
                       
Asset Quality Ratios:                      
Nonperforming assets to total assets    1.51 %   1.50 %   0.47 %   0.63 %   0.55 %   1.51 %   0.55 %
Nonperforming loans to total loans    1.44     1.75     0.36     0.51     0.40     1.44     0.40  
Total classified assets to total regulatory capital    37.59     28.19     19.03     10.93     11.76     37.59     11.76  
Allowance for loan losses to total loans    1.05     1.05     0.97     0.97     0.87     1.05     0.87  
Net charge-offs (recoveries) to average loans outstanding    0.01     0.03     0.00     (0.02)    0.05     0.02     0.23  


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:

                 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
  (In thousands, except per share data)
Tangible Common Equity                
Total shareholders' equity $ 429,402 $ 303,229 $ 298,652 $ 293,770 $ 288,405 
Adjustments:                
Goodwill   85,291   30,129   30,129   30,129   30,129 
Core deposit intangibles   11,562   3,704   3,852   4,000   4,148 
Tangible common equity $ 332,549 $ 269,396 $ 264,671 $ 259,641 $ 254,128 
Common shares outstanding (1)   36,788   26,277   26,270   26,176   26,176 
Book value per common share (1) $ 11.67 $ 11.54 $ 11.37 $ 11.22 $ 11.02 
Tangible book value per common share (1) $ 9.04 $ 10.25 $ 10.08 $ 9.92 $ 9.71 
                 
(1) Excludes the dilutive effect of common stock issuable upon exercise of outstanding stock options.  The number of exercisable options outstanding was 875,007 as of Dec 31, 2015; 939,576 as of Sep 30, 2015; 938,927 as of Jun 30, 2015; 1,021,555 as of Mar 31, 2015; and 1,020,743 as of Dec 31, 2014.


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:

                 
                 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
  (Dollars in thousands)
Tangible Common Equity                
Total shareholders' equity $ 429,402 $ 303,229 $ 298,652 $ 293,770 $ 288,405 
Adjustments:                
Goodwill   85,291   30,129   30,129   30,129   30,129 
Core deposit intangibles   11,562   3,704   3,852   4,000   4,148 
Tangible common equity $ 332,549 $ 269,396 $ 264,671 $ 259,641 $ 254,128 
Tangible Assets                
Total assets $ 3,786,157 $ 2,415,987 $ 2,408,951 $ 2,252,665 $ 2,196,135 
Adjustments:                
Goodwill   85,291   30,129   30,129   30,129   30,129 
Core deposit intangibles   11,562   3,704   3,852   4,000   4,148 
Tangible assets $ 3,689,304 $ 2,382,154 $ 2,374,970 $ 2,218,536 $ 2,161,858 
Tangible Common Equity to Tangible Assets    9.0%  11.3%  11.1%  11.7%  11.8%


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:

                 
                 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
  (Dollars in thousands)
Allowance for loan losses $ 32,947 $ 20,724 $ 18,292 $ 17,542 $ 15,605 
Total loans excluding acquired loans                
Total loans $ 3,130,669 $ 1,982,280 $ 1,894,742 $ 1,810,842 $ 1,799,155 
Less: Fair value of acquired loans accounted for under ASC Topics 310-20 and 310-30   1,197,112   172,645   190,815   214,689   238,424 
Total loans excluding acquired loans $ 1,933,557 $ 1,809,635 $ 1,703,927 $ 1,596,153 $ 1,560,731 
Allowance for loan losses to total loans excluding acquired loans  1.70% 1.15% 1.07% 1.10% 1.00%


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)).

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:

                 
                 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 
                 
  (Dollars in thousands)
Allowance for loan losses plus acquired loan net discount                
Allowance for loan losses at end of period $ 32,947 $ 20,724 $ 18,292 $ 17,542 $ 15,605 
Plus: Net discount on acquired loans   25,348   2,580   2,771   3,474   4,081 
Total allowance plus acquired loan net discount $ 58,295 $ 23,304 $ 21,063 $ 21,016 $ 19,686 
                 
Total loans adjusted for acquired loan net discount                
Total loans $ 3,130,669 $ 1,982,280 $ 1,894,742 $ 1,810,842 $ 1,799,155 
Plus: Net discount on acquired loans   25,348   2,580   2,771   3,474   4,081 
Total loans adjusted for acquired loan net discount $ 3,156,017 $ 1,984,860 $ 1,897,513 $ 1,814,316 $ 1,803,236 
Allowance for loan losses plus acquired loan net discount loans to total loans adjusted for acquired loan net discount  1.85% 1.17% 1.11% 1.16% 1.09%


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 excluding one-time acquisition expenses as net income 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 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
 Year Ended
 
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 
                       
  (In thousands, except per share data) 
Noninterest Expense Excluding One-time Acquisition Expenses                      
Total noninterest expense $ 21,472 $ 14,372 $ 16,578 $ 13,756 $ 17,880 $ 66,178 $ 52,433 
Less: One-time acquisition expenses   1,846   808   1,996   226   4,290   4,876   5,226 
Noninterest expense excluding one-time acquisition expenses $ 19,626 $ 13,564 $ 14,582 $ 13,530 $ 13,590 $ 61,302 $ 47,207 
                       
Net Income Excluding One-time Acquisition Expenses                      
Net Income $ 2,573 $ 4,079 $ 4,138 $ 4,649 $ 2,047 $ 15,439 $ 14,742 
Plus: One-time acquisition expenses, net of taxes   2,057   525   1,297   147   2,788   4,026   3,397 
Net income excluding one-time acquisition expenses $ 4,630 $ 4,604 $ 5,435 $ 4,796 $ 4,835 $ 19,465 $ 18,139 
                       
Weighted average diluted shares outstanding   36,854   26,551   26,518   26,359   26,592   29,096   22,915 
Diluted earnings per share $ 0.07 $ 0.15 $ 0.16 $ 0.18 $ 0.08 $ 0.53 $ 0.64 
Diluted earnings per share, excluding one-time acquisition expenses   0.13   0.17   0.20   0.18   0.18   0.67   0.79 
                       
Average Total Assets $ 3,761,050 $ 2,395,556 $ 2,273,297 $ 2,207,869 $ 2,134,814 $ 2,662,919 $ 1,873,163 
Return on average assets   0.27%  0.68%  0.73%  0.85%  0.38%  0.58%  0.79%
Return on average assets, excluding one-time acquisition expenses   0.49   0.76   0.96   0.88   0.90   0.73   0.97 
                       
Average Common Shareholders' equity $ 429,527 $ 301,370 $ 296,259 $ 291,674 $ 286,660 $ 330,007 $ 232,868 
Return on average equity   2.38%  5.37%  5.60%  6.46%  2.83%  4.68%  6.33%
Return on average equity, excluding one-time acquisition expenses   4.28   6.06   7.36   6.67   6.69   5.90   7.79 
                       
Net interest income $ 35,007 $ 21,162 $ 20,923 $ 20,516 $ 20,283 $ 97,608 $ 70,177 
Noninterest Income $ 4,276 $ 2,871 $ 2,955 $ 2,085 $ 2,137 $ 12,187 $ 8,056 
                       
Efficiency ratio   54.66%  59.80%  69.43%  60.86%  79.75%  60.27%  67.02%
Efficiency ratio, excluding one-time acquisition expenses   49.96   56.44   61.07   59.86   60.62   55.83   60.34 


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 plus provision 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
 Year Ended
  Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014
                      
  (Dollars in thousands)      
Pre-Tax, Pre-Provision Adjusted Net Income                     
Net Income $ 2,573 $ 4,079 $ 4,138 $ 4,649 $ 2,047 $ 15,439 $ 14,742
Plus: Provision on income taxes   2,738   2,528   2,357   2,691   1,243   10,314   8,365
Plus: Provision for loan losses   12,500   3,054   805   1,505   1,250   17,864   2,693
Plus: One-time acquisition expenses   1,846   808   1,996   226   4,290   4,876   5,226
Total pre-tax, pre-provision adjusted net income $ 19,657 $ 10,469 $ 9,296 $ 9,071 $ 8,830 $ 48,493 $ 31,026

 

Media Contact: Mike Barone 713-275-8243 mbarone@greenbank.com Investor Relations: 713-275-8220 investors@greenbank.com

Primary Logo

View Comments and Join the Discussion!