Market Overview

LegacyTexas Financial Group, Inc. Reports Third Quarter 2019 Earnings

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PLANO, Texas, Oct. 23, 2019 /PRNewswire/ -- LegacyTexas Financial Group, Inc. (NASDAQ:LTXB) (the "Company"), the holding company for LegacyTexas Bank (the "Bank"), today announced net income of $42.4 million for the third quarter of 2019, an increase of $15.4 million from the second quarter of 2019 and a decrease of $397,000 from the third quarter of 2018.  Core (non-GAAP) net income totaled $42.7 million for the third quarter of 2019, up $13.8 million from the second quarter of 2019 and down $518,000 from the third quarter of 2018.*

www.LegacyTexasFinancialGroup.com . (PRNewsFoto/) (PRNewsFoto/LegacyTexas Financial Group, Inc)" alt="LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 42 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, visit www.LegacyTexasFinancialGroup.com . (PRNewsFoto/) (PRNewsFoto/LegacyTexas Financial Group, Inc)">

On June 17, 2019, the Company and Prosperity Bancshares, Inc.® ("Prosperity") jointly announced the signing of a definitive merger agreement pursuant to which the Company will merge with Prosperity.  Under the terms of the merger agreement, stockholders of the Company will receive 0.5280 shares of Prosperity common stock and $6.28 cash for each share of Company common stock.  The merger is expected to be effective as of November 1, 2019, subject to the approval of the shareholders of Prosperity and the stockholders of the Company and the satisfaction or waiver of the other closing conditions described in the merger agreement.  For additional information regarding the Company's proposed merger with Prosperity, see the Company's Current Reports filed on Form 8-K with the SEC on June 17, 2019 and October 9, 2019 and the Company's and Prosperity's joint proxy statement/prospectus filed with the SEC by the Company and Prosperity on September 17, 2019.

Third Quarter 2019 Performance Highlights

  • Assets of $10.46 billion generated basic earnings per share for the third quarter of 2019 of $0.89 on a GAAP basis and $0.90 on a core (non-GAAP) basis.*
  • Gross loans held for investment at September 30, 2019, excluding Warehouse Purchase Program loans, grew $44.6 million, or 0.6%, from June 30, 2019, which includes linked-quarter increases in consumer real estate, commercial and industrial and construction and land loans.
  • Warehouse Purchase Program loans at September 30, 2019 grew $411.4 million, or 26.7%, from June 30, 2019.
  • Return on average assets on an annualized basis improved to 1.72% for the third quarter of 2019, compared to 1.13% for the second quarter of 2019, while core (non-GAAP) return on average assets for the third quarter of 2019 was 1.73%, compared to 1.21% for the second quarter of 2019.*
  • GAAP efficiency ratio improved to 44.72% for the third quarter of 2019, compared to 48.60% for the second quarter of 2019, while core (non-GAAP) efficiency ratio improved to 44.40% for the third quarter of 2019, compared to 46.19% for the second quarter of 2019.*

*See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

Financial Highlights



At or For the Quarters Ended

(unaudited)

September 30, 2019


June 30, 2019


September 30, 2018


(Dollars in thousands, except per share amounts)

Net interest income

$

85,341



$

85,554



$

85,667


Provision for credit losses

1,200



16,100



2,656


Non-interest income

13,349



12,232



13,227


Non-interest expense

44,133



47,526



42,192


Income tax expense

10,933



7,177



11,225


Net income

$

42,424



$

26,983



$

42,821








Basic earnings per common share

$

0.89



$

0.57



$

0.91


Basic core (non-GAAP) earnings per common share1

$

0.90



$

0.61



$

0.92


Weighted average common shares outstanding - basic

47,607,076



47,383,314



47,105,655


Estimated Tier 1 common equity risk-based capital ratio2

10.48

%


10.48

%


10.46

%

Total equity to total assets

11.35

%


11.50

%


11.45

%

Tangible common equity to tangible assets - Non-GAAP1

9.81

%


9.88

%


9.67

%



1   

See the section labeled "Supplemental Information - Non-GAAP Financial Measures" at the end of this document.

2   

Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.

Basic earnings per share for the quarter ended September 30, 2019 was $0.89, an increase of $0.32 from the second quarter of 2019 and a decrease of $0.02 from the third quarter of 2018.  Basic core (non-GAAP) earnings per share for the third quarter of 2019 was $0.90, an increase of $0.29 from the second quarter of 2019 and a decrease of $0.02 from the third quarter of 2018.

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