Meta Financial Group, Inc.® Announces Results for 2020 Fiscal First Quarter
- 2020 Fiscal First Quarter Net Income of
- Sale of Community Bank Division Expected to be Completed in 2020 Fiscal Second Quarter -
“Our ongoing efforts to enhance our earning asset mix and increasingly leverage our core deposit base continues to drive strong earnings growth - as evidenced by the 37% increase in earnings for the first quarter of fiscal 2020 compared to the same period last year,” said President and CEO
Highlights for the 2020 Fiscal First Quarter Ended December 31, 2019
- Total gross loans and leases at December 31, 2019 increased
$255.0 million , or 8%, to$3.58 billion , compared to December 31, 2018 and decreased$68.1 million , or 2% when compared toSeptember 30, 2019 . The decrease compared toSeptember 30, 2019 was driven by the transfer of$251.9 million of Community Banking loans to held for sale during the first quarter of fiscal 2020. - Average deposits from the payments divisions increased nearly 12% to
$2.78 billion when compared to the same period in fiscal 2019. - Total revenue for the fiscal 2020 first quarter was
$102.1 million , compared to$98.0 million for the same quarter in fiscal 2019, representing a 4% increase. - Net interest income was
$64.7 million , compared to$60.3 million in the comparable quarter in fiscal 2019. - Net interest margin ("NIM") increased to 4.94% for the fiscal 2020 first quarter from 4.60% over the same period of the prior fiscal year, while the tax-equivalent net interest margin ("NIM, TE") increased to 4.99% from 4.76% over that same period in fiscal 2019.
- During the quarter ended
December 31, 2019 , the Company repurchased 899,371 of its shares, at an average price of$34.17 . This exhausted the remaining 319,228 shares that were available for repurchase by the Company at the beginning of fiscal 2020 under the share repurchase program announced during the fiscal 2019 second quarter. In addition, the Company also announced onNovember 20, 2019 , the authorization by its Board of Directors of a new share repurchase program to repurchase up to an additional 7,500,000 shares of the Company's outstanding common stock. The new authorization is effective fromNovember 21, 2019 throughDecember 31, 2022 .
Community Bank Divestiture
On November 20, 2019, the Company announced that
In connection with
During the quarter ended December 31, 2019, the Company also disposed of assets related to a previously disclosed
Net Interest Income
Net interest income for the fiscal 2020 first quarter was
During the first quarter of fiscal year 2020, loan and lease interest income grew by
NIM increased to 4.94% for the fiscal 2020 first quarter from 4.60% for the comparable quarter in fiscal 2019. The net effect of purchase accounting accretion contributed six basis points to NIM for the fiscal 2020 first quarter as compared to 25 basis points and 18 basis points for the quarters ended
The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased by nine basis points to 5.98% for the fiscal 2020 first quarter compared to the fiscal 2019 first quarter, driven primarily by the Company's improved earning asset mix, which reflects higher balances for the national lending portfolio. The fiscal 2020 first quarter TEY on the securities portfolio was 2.65% compared to 3.13% for the same period of the prior fiscal year.
The Company's cost of funds for all deposits and borrowings averaged 1.01% during the fiscal 2020 first quarter, compared to 1.14% for the fiscal 2019 first quarter. This decrease was primarily due to a decrease in overnight borrowings rates as well as an increase in the average balance of the Company's noninterest-bearing deposits. The Company's overall cost of deposits was 0.81% in the fiscal first quarter of 2020, compared to 0.92% in the same quarter of fiscal 2019.
Noninterest Income
Fiscal 2020 first quarter noninterest income was
Noninterest Expense
Noninterest expense increased 2% to
Income Tax Expense
The Company recorded income tax expense of
The Company originated
Investments, Loans and Leases
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
|||||||||||||||
Total investments | $ | 1,337,840 | $ | 1,407,257 | $ | 1,502,640 | $ | 1,649,754 | $ | 1,855,792 | |||||||||
Loans held for sale | |||||||||||||||||||
Consumer credit products | — | 122,299 | 45,582 | 42,342 | 24,233 | ||||||||||||||
SBA/USDA | 13,883 | 26,478 | 17,257 | 17,403 | 9,327 | ||||||||||||||
Community Bank(1) | 250,383 | — | — | — | — | ||||||||||||||
Total loans held for sale | 264,266 | 148,777 | 62,839 | 59,745 | 33,560 | ||||||||||||||
National Lending | |||||||||||||||||||
Term lending(2) | 695,347 | 645,978 | 565,883 | 510,506 | 492,496 | ||||||||||||||
Asset based lending(2) | 250,633 | 250,465 | 229,573 | 230,557 | 207,981 | ||||||||||||||
Factoring | 285,776 | 296,507 | 320,344 | 287,955 | 284,912 | ||||||||||||||
Lease financing(2) | 223,715 | 173,679 | 161,810 | 152,561 | 144,484 | ||||||||||||||
Insurance premium finance | 349,299 | 361,105 | 358,772 | 307,875 | 330,712 | ||||||||||||||
SBA/USDA | 90,269 | 88,831 | 99,791 | 77,481 | 67,893 | ||||||||||||||
Other commercial finance | 99,617 | 99,665 | 99,677 | 98,956 | 89,402 | ||||||||||||||
Commercial Finance | 1,994,656 | 1,916,230 | 1,835,850 | 1,665,891 | 1,617,880 | ||||||||||||||
Consumer credit products | 115,843 | 106,794 | 155,539 | 139,617 | 96,144 | ||||||||||||||
Other consumer finance | 154,772 | 161,404 | 164,727 | 170,824 | 182,510 | ||||||||||||||
Consumer Finance | 270,615 | 268,198 | 320,266 | 310,441 | 278,654 | ||||||||||||||
Tax Services | 101,739 | 2,240 | 24,410 | 84,824 | 76,575 | ||||||||||||||
Warehouse Finance | 272,522 | 262,924 | 250,003 | 186,697 | 176,134 | ||||||||||||||
Total National Lending loans and leases | 2,639,532 | 2,449,592 | 2,430,529 | 2,247,853 | 2,149,243 | ||||||||||||||
Community Banking | |||||||||||||||||||
Commercial real estate and operating | 682,399 | 883,932 | 877,412 | 869,917 | 863,753 | ||||||||||||||
Consumer one-to-four family real estate and other | 220,588 | 259,425 | 256,853 | 257,079 | 256,341 | ||||||||||||||
Agricultural real estate and operating | 40,778 | 58,464 | 61,169 | 60,167 | 58,971 | ||||||||||||||
Total Community Banking loans | 943,765 | 1,201,821 | 1,195,434 | 1,187,163 | 1,179,065 | ||||||||||||||
Total gross loans and leases | 3,583,297 | 3,651,413 | 3,625,963 | 3,435,016 | 3,328,308 | ||||||||||||||
Allowance for loan and lease losses | (30,176 | ) | (29,149 | ) | (43,505 | ) | (48,672 | ) | (21,290 | ) | |||||||||
Net deferred loan and lease origination fees (costs) | 7,177 | 7,434 | 5,068 | 2,964 | 1,190 | ||||||||||||||
Total loans and leases, net of allowance | $ | 3,560,298 | $ | 3,629,698 | $ | 3,587,526 | $ | 3,389,308 | $ | 3,308,208 |
(1) The December 31, 2019 balance included
(2) The Company has updated the presentation of its loan and lease table beginning in the fiscal 2020 first quarter. The new presentation includes a new category called term lending. Certain balances previously included in the asset based lending and lease financing categories have been reclassified into the new term lending category during the fiscal 2020 first quarter. Prior period balances have been conformed to the new presentation.
The Company continued to utilize cash flow from its amortizing securities portfolio to fund loan and lease growth. Investment securities totaled
On
Total gross loans and leases increased
At December 31, 2019, commercial finance loans, which comprised 56% of the Company's gross loan and lease portfolio, totaled
Asset Quality
The Company’s allowance for loan and lease losses was
(Unaudited) | Three Months Ended | ||||||||||
Allowance for loan and lease loss activity | December 31, 2019 | September 30, 2019 | December 31, 2018 | ||||||||
(Dollars in thousands) | |||||||||||
Beginning balance | $ | 29,149 | $ | 43,505 | $ | 13,040 | |||||
Provision - tax services loans | 911 | (9 | ) | 1,496 | |||||||
Provision - all other loans and leases | 2,496 | 4,130 | 7,603 | ||||||||
Charge-offs - tax services loans | — | (15,426 | ) | (42 | ) | ||||||
Charge-offs - all other loans and leases | (3,918 | ) | (3,351 | ) | (2,762 | ) | |||||
Recoveries - tax services loans | 739 | 10 | 92 | ||||||||
Recoveries - all other loans and leases | 799 | 290 | 1,863 | ||||||||
Ending balance | $ | 30,176 | $ | 29,149 | $ | 21,290 |
Provision for loan and lease losses was
The Company's nonperforming assets at December 31, 2019, were
At
Deposits, Borrowings and Other Liabilities
Total average deposits for the fiscal 2020 first quarter increased by
The average balance of total deposits and interest-bearing liabilities was
Total end-of-period deposits decreased 8% to
The Company and
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
As of the dates indicated | December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
|||||||||
Company | ||||||||||||||
Tier 1 leverage capital ratio | 8.28 | % | 8.33 | % | 8.05 | % | 7.45 | % | 7.90 | % | ||||
Common equity Tier 1 capital ratio | 10.10 | % | 10.35 | % | 10.19 | % | 10.94 | % | 10.10 | % | ||||
Tier 1 capital ratio | 10.46 | % | 10.71 | % | 10.55 | % | 11.31 | % | 10.47 | % | ||||
Total capital ratio | 12.74 | % | 13.01 | % | 13.22 | % | 14.20 | % | 12.69 | % | ||||
MetaBank | ||||||||||||||
Tier 1 leverage capital ratio | 9.70 | % | 9.65 | % | 9.37 | % | 8.42 | % | 9.01 | % | ||||
Common equity Tier 1 capital ratio | 12.18 | % | 12.31 | % | 12.22 | % | 12.72 | % | 11.87 | % | ||||
Tier 1 capital ratio | 12.24 | % | 12.37 | % | 12.27 | % | 12.76 | % | 11.91 | % | ||||
Total capital ratio | 12.90 | % | 13.02 | % | 13.26 | % | 13.92 | % | 12.41 | % |
The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
Standardized Approach(1) | December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Total stockholders' equity | $ | 837,068 | $ | 843,958 | $ | 822,901 | $ | 823,709 | $ | 770,728 | |||||||||
Adjustments: | |||||||||||||||||||
LESS: Goodwill, net of associated deferred tax liabilities | 304,020 | 304,020 | 302,850 | 302,768 | 299,037 | ||||||||||||||
LESS: Certain other intangible assets | 47,855 | 50,501 | 53,249 | 56,456 | 61,317 | ||||||||||||||
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards | 16,876 | 15,569 | 13,858 | 7,381 | 4,720 | ||||||||||||||
LESS: Net unrealized gains (losses) on available-for-sale securities | 3,897 | 6,458 | 2,329 | (10,022 | ) | (28,829 | ) | ||||||||||||
LESS: Non-controlling interest | 4,305 | 4,047 | 3,508 | 3,528 | 3,267 | ||||||||||||||
LESS: Unrealized currency gains (losses) | — | — | — | (242 | ) | (357 | ) | ||||||||||||
Common Equity Tier 1(1) | 460,115 | 463,363 | 447,107 | 463,840 | 431,573 | ||||||||||||||
Long-term borrowings and other instruments qualifying as Tier 1 | 13,661 | 13,661 | 13,661 | 13,661 | 13,661 | ||||||||||||||
Tier 1 minority interest not included in common equity tier 1 capital | 2,372 | 2,350 | 2,119 | 2,064 | 1,796 | ||||||||||||||
Total Tier 1 Capital | 476,148 | 479,374 | 462,887 | 479,565 | 447,030 | ||||||||||||||
Allowance for loan and lease losses | 30,239 | 29,272 | 43,641 | 48,812 | 21,422 | ||||||||||||||
Subordinated debentures (net of issuance costs) | 73,684 | 73,644 | 73,605 | 73,566 | 73,528 | ||||||||||||||
Total qualifying capital | $ | 580,071 | $ | 582,290 | $ | 580,133 | $ | 601,963 | $ | 541,980 |
(1) Capital ratios were determined using the Basel III capital rules that became effective on
The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
|||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Total Stockholders' Equity | $ | 837,068 | $ | 843,958 | $ | 822,901 | $ | 823,709 | $ | 770,728 | |||||||||
Less: Goodwill | 309,505 | 309,505 | 307,941 | 307,464 | 303,270 | ||||||||||||||
Less: Intangible assets | 50,151 | 52,810 | 56,153 | 60,506 | 66,366 | ||||||||||||||
Tangible common equity | 477,412 | 481,643 | 458,807 | 455,739 | 401,092 | ||||||||||||||
Less: Accumulated other comprehensive income (loss) ("AOCI") | 3,895 | 6,339 | 2,308 | (10,264 | ) | (29,186 | ) | ||||||||||||
Tangible common equity excluding AOCI | $ | 473,517 | $ | 475,304 | $ | 456,499 | $ | 466,003 | $ | 430,278 |
Future Outlook
The Company expects full-year fiscal 2020 GAAP earnings per common share to range between
Conference Call
The Company will host a conference call and earnings webcast at
Annual Meeting of Shareholders
The Annual Meeting of Shareholders will convene at
Forward-Looking Statements
The Company and
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results; customer retention; loan and other product demand; important components of the Company's statements of financial condition and operations; growth and expansion; expectations concerning the Company's acquisitions and divestitures, including potential benefits of, and other expectations for the Company in connection with, such transactions; new products and services, such as those offered by
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended
Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in Thousands, Except Share Data)
ASSETS | December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
||||||||||||||
Cash and cash equivalents | $ | 152,189 | $ | 126,545 | $ | 100,732 | $ | 156,461 | $ | 164,169 | |||||||||
Investment securities available for sale, at fair value | 852,603 | 889,947 | 961,897 | 1,081,663 | 1,340,870 | ||||||||||||||
Mortgage-backed securities available for sale, at fair value | 362,120 | 382,546 | 395,201 | 413,493 | 354,186 | ||||||||||||||
Investment securities held to maturity, at cost | 116,313 | 127,582 | 138,128 | 146,992 | 153,075 | ||||||||||||||
Mortgage-backed securities held to maturity, at cost | 6,804 | 7,182 | 7,414 | 7,606 | 7,661 | ||||||||||||||
Loans held for sale | 264,266 | 148,777 | 62,839 | 59,745 | 33,560 | ||||||||||||||
Loans and leases | 3,590,474 | 3,658,847 | 3,631,031 | 3,437,980 | 3,329,498 | ||||||||||||||
Allowance for loan and lease losses | (30,176 | ) | (29,149 | ) | (43,505 | ) | (48,672 | ) | (21,290 | ) | |||||||||
Federal Home Loan Bank Stock, at cost | 13,796 | 30,916 | 17,236 | 7,436 | 15,600 | ||||||||||||||
Accrued interest receivable | 18,687 | 20,400 | 19,722 | 20,281 | 22,076 | ||||||||||||||
Premises, furniture, and equipment, net | 38,671 | 45,932 | 46,360 | 45,457 | 44,299 | ||||||||||||||
Rental equipment, net | 211,673 | 208,537 | 184,732 | 140,087 | 146,815 | ||||||||||||||
Bank-owned life insurance | 90,458 | 89,827 | 89,193 | 88,565 | 87,934 | ||||||||||||||
Foreclosed real estate and repossessed assets | 1,328 | 29,494 | 29,514 | 29,548 | 31,548 | ||||||||||||||
Goodwill | 309,505 | 309,505 | 307,941 | 307,464 | 303,270 | ||||||||||||||
Intangible assets | 50,151 | 52,810 | 56,153 | 60,506 | 66,366 | ||||||||||||||
Prepaid assets | 14,813 | 9,476 | 22,023 | 26,597 | 31,483 | ||||||||||||||
Deferred taxes | 19,752 | 18,884 | 21,630 | 19,079 | 23,607 | ||||||||||||||
Other assets | 97,499 | 54,832 | 52,831 | 49,754 | 48,038 | ||||||||||||||
Total assets | $ | 6,180,926 | 6,182,890 | $ | 6,101,072 | $ | 6,050,042 | $ | 6,182,765 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||
Deposits held for sale | $ | 288,975 | $ | — | $ | — | $ | — | $ | — | |||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing checking | 2,927,967 | 2,358,010 | 2,751,931 | 3,034,428 | 2,739,757 | ||||||||||||||
Interest-bearing checking | 67,642 | 185,768 | 157,802 | 183,492 | 128,662 | ||||||||||||||
Savings deposits | 17,436 | 49,773 | 52,179 | 59,978 | 52,229 | ||||||||||||||
Money market deposits | 42,286 | 76,911 | 68,604 | 56,563 | 54,559 | ||||||||||||||
Time certificates of deposit | 23,454 | 109,275 | 116,698 | 154,401 | 170,629 | ||||||||||||||
Wholesale deposits | 1,438,820 | 1,557,268 | 1,628,000 | 1,481,445 | 1,790,611 | ||||||||||||||
Total deposits | 4,517,605 | 4,337,005 | 4,775,214 | 4,970,307 | 4,936,447 | ||||||||||||||
Short-term borrowings | 194,000 | 646,019 | 146,613 | 11,583 | 231,293 | ||||||||||||||
Long-term borrowings | 213,070 | 215,838 | 209,765 | 99,800 | 88,983 | ||||||||||||||
Accrued interest payable | 6,620 | 9,414 | 12,350 | 9,239 | 11,280 | ||||||||||||||
Accrued expenses and other liabilities | 123,588 | 130,656 | 134,229 | 135,404 | 144,034 | ||||||||||||||
Total liabilities | 5,343,858 | 5,338,932 | 5,278,171 | 5,226,333 | 5,412,037 | ||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||||||
Common stock, $.01 par value | 372 | 378 | 379 | 395 | 394 | ||||||||||||||
Common stock, Nonvoting, $.01 par value | — | — | — | — | — | ||||||||||||||
Additional paid-in capital | 587,678 | 580,826 | 578,715 | 576,406 | 572,156 | ||||||||||||||
Retained earnings | 244,005 | 252,813 | 238,004 | 258,600 | 228,453 | ||||||||||||||
Accumulated other comprehensive income (loss) | 3,895 | 6,339 | 2,308 | (10,264 | ) | (29,186 | ) | ||||||||||||
Treasury stock, at cost | (3,187 | ) | (445 | ) | (13 | ) | (4,956 | ) | (4,356 | ) | |||||||||
Total equity attributable to parent | 832,763 | 839,911 | 819,393 | 820,181 | 767,461 | ||||||||||||||
Noncontrolling interest | 4,305 | 4,047 | 3,508 | 3,528 | 3,267 | ||||||||||||||
Total stockholders’ equity | 837,068 | 843,958 | 822,901 | 823,709 | 770,728 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,180,926 | $ | 6,182,890 | $ | 6,101,072 | $ | 6,050,042 | $ | 6,182,765 |
Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except Share and Per Share Data)
Three Months Ended | |||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||
Interest and dividend income: | |||||||||||
Loans and leases, including fees | $ | 68,702 | $ | 70,628 | $ | 60,498 | |||||
Mortgage-backed securities | 2,389 | 2,768 | 2,698 | ||||||||
Other investments | 6,534 | 7,432 | 11,780 | ||||||||
77,625 | 80,828 | 74,976 | |||||||||
Interest expense: | |||||||||||
Deposits | 9,340 | 10,917 | 10,596 | ||||||||
FHLB advances and other borrowings | 3,634 | 4,294 | 4,108 | ||||||||
12,974 | 15,211 | 14,704 | |||||||||
Net interest income | 64,651 | 65,617 | 60,272 | ||||||||
Provision for loan for lease losses | 3,407 | 4,121 | 9,099 | ||||||||
Net interest income after provision for loan and lease losses | 61,244 | 61,496 | 51,173 | ||||||||
Noninterest income: | |||||||||||
Refund transfer product fees | 192 | 639 | 261 | ||||||||
Tax advance product fees | 2,276 | (70 | ) | 1,685 | |||||||
Payments card and deposit fees | 21,499 | 20,276 | 20,807 | ||||||||
Other bank and deposit fees | 487 | 492 | 482 | ||||||||
Rental income | 12,351 | 10,886 | 10,890 | ||||||||
Gain (loss) on sale of securities available-for-sale, net | — | 80 | (22 | ) | |||||||
(Loss) gain on sale of other | (2,568 | ) | 1,715 | 1,266 | |||||||
Other income | 3,246 | 1,962 | 2,382 | ||||||||
Total noninterest income | 37,483 | 35,980 | 37,751 | ||||||||
Noninterest expense: | |||||||||||
Compensation and benefits | 34,268 | 38,461 | 33,010 | ||||||||
Refund transfer product expense | 173 | 48 | 10 | ||||||||
Tax advance product expense | 1,132 | 1 | 452 | ||||||||
Card processing | 5,607 | 5,008 | 7,085 | ||||||||
Occupancy and equipment expense | 6,655 | 7,265 | 6,458 | ||||||||
Operating lease equipment depreciation | 8,280 | 7,901 | 7,765 | ||||||||
Legal and consulting | 4,674 | 4,968 | 3,969 | ||||||||
Intangible amortization | 2,676 | 3,358 | 4,383 | ||||||||
Impairment expense | 242 | — | — | ||||||||
Other expense | 12,091 | 9,133 | 11,163 | ||||||||
Total noninterest expense | 75,798 | 76,143 | 74,295 | ||||||||
Income before income tax expense | 22,929 | 21,333 | 14,629 | ||||||||
Income tax expense (benefit) | 680 | (130 | ) | (1,691 | ) | ||||||
Net income before noncontrolling interest | 22,249 | 21,463 | 16,320 | ||||||||
Net income attributable to noncontrolling interest | 1,181 | 1,268 | 922 | ||||||||
Net income attributable to parent | $ | 21,068 | $ | 20,195 | $ | 15,398 | |||||
Earnings per common share | |||||||||||
Basic | $ | 0.56 | $ | 0.53 | $ | 0.39 | |||||
Diluted | $ | 0.56 | $ | 0.53 | $ | 0.39 | |||||
Shares used in computing earnings per share | |||||||||||
Basic | 37,431,788 | 37,868,788 | 39,335,054 | ||||||||
Diluted | 37,465,878 | 37,912,616 | 39,406,507 |
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Only the yield/rate reflects tax-equivalent adjustments. Non-accruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended December 31, | 2019 | 2018 | |||||||||||||||||||
(Dollars in Thousands) | Average Outstanding Balance |
Interest Earned / Paid |
Yield / Rate(1) |
Average Outstanding Balance |
Interest Earned / Paid |
Yield / Rate(1) |
|||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Cash and fed funds sold | $ | 99,597 | $ | 412 | 1.65 | % | $ | 45,383 | $ | 555 | 4.85 | % | |||||||||
Mortgage-backed securities | 376,358 | 2,389 | 2.53 | % | 381,285 | 2,698 | 2.81 | % | |||||||||||||
Tax exempt investment securities | 490,982 | 2,339 | 2.40 | % | 1,237,198 | 7,803 | 3.17 | % | |||||||||||||
Asset-backed securities | 303,885 | 2,354 | 3.08 | % | 298,445 | 2,712 | 3.61 | % | |||||||||||||
Other investment securities | 197,513 | 1,429 | 2.88 | % | 110,879 | 710 | 2.54 | % | |||||||||||||
Total investments | 1,368,738 | 8,511 | 2.65 | % | 2,027,807 | 13,923 | 3.13 | % | |||||||||||||
Commercial finance loans and leases | 1,980,509 | 44,781 | 9.00 | % | 1,562,054 | 39,281 | 9.98 | % | |||||||||||||
Consumer finance loans | 270,612 | 5,790 | 8.51 | % | 291,421 | 6,230 | 8.48 | % | |||||||||||||
Tax services loans | 24,429 | 33 | 0.54 | % | 11,009 | 2 | 0.07 | % | |||||||||||||
Warehouse finance loans | 265,564 | 4,174 | 6.25 | % | 99,818 | 1,632 | 6.49 | % | |||||||||||||
National lending loans and leases | 2,541,114 | 54,778 | 8.58 | % | 1,964,302 | 47,145 | 9.52 | % | |||||||||||||
Community banking loans | 1,194,082 | 13,924 | 4.64 | % | 1,156,072 | 13,353 | 4.58 | % | |||||||||||||
Total loans and leases | 3,735,196 | 68,702 | 7.32 | % | 3,120,374 | 60,498 | 7.69 | % | |||||||||||||
Total interest-earning assets | $ | 5,203,531 | $ | 77,625 | 5.98 | % | $ | 5,193,564 | $ | 74,976 | 5.89 | % | |||||||||
Non-interest-earning assets | 918,973 | 787,973 | |||||||||||||||||||
Total assets | $ | 6,122,504 | $ | 5,981,537 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing checking | $ | 163,693 | $ | 153 | 0.37 | % | $ | 102,880 | $ | 58 | 0.23 | % | |||||||||
Savings | 48,776 | 9 | 0.08 | % | 53,661 | 10 | 0.07 | % | |||||||||||||
Money markets | 80,528 | 205 | 1.01 | % | 54,288 | 64 | 0.47 | % | |||||||||||||
Time deposits | 114,924 | 595 | 2.06 | % | 205,049 | 881 | 1.71 | % | |||||||||||||
Wholesale deposits | 1,472,820 | 8,378 | 2.26 | % | 1,698,492 | 9,583 | 2.24 | % | |||||||||||||
Total interest-bearing deposits | 1,880,741 | 9,340 | 1.98 | % | 2,114,370 | 10,596 | 1.99 | % | |||||||||||||
Overnight fed funds purchased | 302,804 | 1,450 | 1.91 | % | 393,315 | 2,481 | 2.50 | % | |||||||||||||
FHLB advances | 110,000 | 678 | 2.45 | % | — | — | — | % | |||||||||||||
Subordinated debentures | 73,658 | 1,160 | 6.26 | % | 73,504 | 1,161 | 6.27 | % | |||||||||||||
Other borrowings | 33,589 | 346 | 4.10 | % | 30,058 | 466 | 6.15 | % | |||||||||||||
Total borrowings | 520,051 | 3,634 | 2.78 | % | 496,877 | 4,108 | 3.28 | % | |||||||||||||
Total interest-bearing liabilities | 2,400,792 | 12,974 | 2.15 | % | 2,611,247 | 14,704 | 2.23 | % | |||||||||||||
Noninterest-bearing deposits | 2,732,062 | — | — | % | 2,489,148 | — | — | % | |||||||||||||
Total deposits and interest-bearing liabilities | $ | 5,132,854 | $ | 12,974 | 1.01 | % | $ | 5,100,395 | $ | 14,704 | 1.14 | % | |||||||||
Other noninterest-bearing liabilities | 150,319 | 128,900 | |||||||||||||||||||
Total liabilities | 5,283,173 | 5,229,295 | |||||||||||||||||||
Shareholders' equity | 839,331 | 752,242 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,122,504 | $ | 5,981,537 | |||||||||||||||||
Net interest income and net interest rate spread including noninterest-bearing deposits | $ | 64,651 | 4.97 | % | $ | 60,272 | 4.75 | % | |||||||||||||
Net interest margin | 4.94 | % | 4.60 | % | |||||||||||||||||
Tax-equivalent effect | 0.05 | % | 0.16 | % | |||||||||||||||||
Net interest margin, tax-equivalent(2) | 4.99 | % | 4.76 | % |
(1) Tax rate used to arrive at the TEY for the three months ended
(2) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.
Selected Financial Information |
|||||||||||||||||||
As of and For the Three Months Ended | December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
||||||||||||||
Equity to total assets | 13.54 | % | 13.65 | % | 13.49 | % | 13.61 | % | 12.47 | % | |||||||||
Book value per common share outstanding | $ | 22.52 | $ | 22.32 | $ | 21.72 | $ | 20.88 | $ | 19.56 | |||||||||
Tangible book value per common share outstanding | $ | 12.84 | $ | 12.74 | $ | 12.11 | $ | 11.55 | $ | 10.18 | |||||||||
Tangible book value per common share outstanding excluding AOCI | $ | 12.74 | $ | 12.57 | $ | 12.05 | $ | 11.81 | $ | 10.92 | |||||||||
Common shares outstanding | 37,172,081 | 37,807,064 | 37,878,205 | 39,450,938 | 39,405,508 | ||||||||||||||
Non-performing assets to total assets | 0.48 | % | 0.91 | % | 0.84 | % | 0.68 | % | 0.73 | % | |||||||||
Non-performing loans and leases to total loans and leases | 0.62 | % | 0.70 | % | 0.57 | % | 0.28 | % | 0.42 | % | |||||||||
Net interest margin | 4.94 | % | 4.95 | % | 5.07 | % | 5.06 | % | 4.60 | % | |||||||||
Net interest margin, tax-equivalent | 4.99 | % | 5.00 | % | 5.15 | % | 5.18 | % | 4.76 | % | |||||||||
Return on average assets | 1.38 | % | 1.32 | % | 1.91 | % | 1.89 | % | 1.03 | % | |||||||||
Return on average equity | 10.04 | % | 9.69 | % | 14.17 | % | 16.18 | % | 8.19 | % | |||||||||
Full-time equivalent employees | 1,088 | 1,186 | 1,218 | 1,231 | 1,229 |
Quarterly Amortization of Intangibles Expense | |||||||||||||||||||||||||||
(Dollars in Thousands) | Actual | Anticipated | |||||||||||||||||||||||||
For the Three Months Ended | Dec 31, 2019 |
Mar 31, 2020 |
Jun 30, 2020 |
Sep 30, 2020 |
Dec 31, 2020 |
Mar 31, 2021 |
Jun 30, 2021 |
Sep 30, 2021 |
Dec 31, 2021 |
||||||||||||||||||
Amortization of intangibles(1) | $ | 2,676 | $ | 3,393 | $ | 2,625 | $ | 2,270 | $ | 2,009 | $ | 2,753 | $ | 2,009 | $ | 1,757 | $ | 1,484 |
(1) These amounts are based upon the current reporting period’s intangible assets only. This table makes no assumption for expenses related to future acquired intangible assets.
About
Investor Relations and Media Contact: | |
Brittany Kelley Elsasser | |
Director of Investor Relations | |
605-362-2423 | |
bkelley@metabank.com |
Source: MetaBank