AMERICAN FORK, Utah, July 26, 2017 (GLOBE NEWSWIRE) -- People’s Utah Bancorp (the “Company”) (Nasdaq: PUB), a bank holding company and parent of People’s Intermountain Bank (“Bank”), reported net income of $6.5 million compared with $6.5 million in the first quarter of 2017, and $5.6 million for the second quarter of 2016. Diluted earnings per common share were $0.35 in the second quarter of 2017 compared with $0.36 in the first quarter of 2017, and $0.31 for the second quarter of 2016. For the six months ended June 30, 2017 net income was $13.0 million, or $0.71 per diluted common share, compared with $10.8 million, or $0.60 per diluted common share, for the same period a year earlier.
The Board of Directors declared a quarterly dividend of $0.09 per common share, a 12.5%, or $0.01 per common share increase from the prior quarter. The dividend will be payable on August 14, 2017 to shareholders of record on August 7, 2017. The dividend payout ratio for earnings for the quarter ended June 30, 2017 was 24.9%. This continues our over 50-year trend in paying dividends.
Highlights of the Second Quarter of 2017
- Deposits grew $115 million, or 8.5%, to $1.5 billion year-over-year
- Loans held for investment grew $106 million, or 9.6%, to $1.2 billion year-over-year
- Net interest margin increased 4 bps to 4.71% year-over-year
- Return on average equity increased to 10.91% year-over-year
- Return on average assets increased to 1.53% year-over-year
- Efficiency ratio improved to 52.19%
“We’re pleased to have achieved strong growth across our community banking family, while improving our net interest margins and operating efficiencies,” said Richard Beard, President and Chief Executive Officer of People’s Utah Bancorp. “While we continue to achieve solid loan growth, we’ve maintained a strong focus on credit quality as reflected in our low level of nonperforming assets and net charge-offs. As a result of our efforts to profitably grow our business, we continue to experience positive trends in our operating results.”
Earnings Summary
Net income for the second quarter of 2017 of $6.5 million compared with $6.5 million in the first quarter of 2017 was primarily impacted by the following factors: (a) higher net interest income of $1.2 million due primarily to strong loan and deposit growth; (b) higher provision for loan losses of $0.7 million due primarily to $49 million growth in loans held for investment; (c) higher non-interest income of $0.2 million, (d) lower non-interest expense of $0.1 million, principally from lower salaries and benefits; and (e) higher income tax expense of $0.8 million due to lower deduction of non-qualifying stock awards in the second quarter. These factors contributed to diluted earnings per common share decreasing $0.01 per share to $0.35 per share in the second quarter of 2017 compared to $0.36 per share in the first quarter of 2017.
Net income for the second quarter of 2017 of $6.5 million compared with $5.6 million in the second quarter of 2016 was impacted primarily by the following factors: (a) higher net interest income of $1.8 million due primarily to strong loan and deposit growth; and (b) higher provision for loan losses of $0.7 million due primarily to loan growth.
Return on average assets for the second quarter of 2017 was 1.53% compared with 1.59% for the first quarter of 2017, and 1.43% for the second quarter of 2016. Return on average equity for the second quarter of 2017 was 10.91% compared with 11.39% for the first quarter of 2017, and 10.26% for the second quarter of 2016.
Net Interest Income and Margin
Net interest income for the second quarter of 2017 increased $1.2 million compared with the first quarter of 2017, primarily due to a $29.6 million increase in average earning assets and a 15 basis points increase in yield on interest earning assets. Average loans increased by $41.7 million during the comparable periods. This contributed to a higher net interest margin of 4.71% in the current quarter compared with 4.55% in the first quarter of 2017.
Net interest income for the second quarter of 2017 increased $1.8 million compared with the same period a year earlier, primarily due to a $133 million increase in the average earning assets and a 4 basis points increase in the yield on interest earning assets. Average loans increased by $80.8 million during the comparable periods. This resulted in a higher net interest margin of 4.71% in the current quarter compared to 4.67% in the second quarter of 2016.
Provision for Loan Losses
The provision for loan losses for the second quarter of 2017 was $0.7 million higher compared with the first quarter of 2017, and $0.7 million higher compared with the second quarter of 2016, due primarily to growth in loans held for investment. The Company incurred net charge-offs of $0.3 million in the second quarter of 2017 compared with $0.3 million in the first quarter of 2017, and net recoveries of ($0.2) million in the second quarter of 2016.
Non-interest Income
Non-interest income for the second quarter of 2017 increased $0.2 million compared with the first quarter of 2017 primarily due to the sale of land held by the Bank, and was flat with the same period a year earlier. The Company has experienced lower mortgage banking income and residential mortgage loan volumes in the first and second quarters of 2017 compared to the second quarter of 2016.
Non-interest Expense
Non-interest expense for the second quarter of 2017 decreased by $0.1 million compared with the first quarter of 2017, principally related to lower salaries and benefits, and was flat compared with the same period a year ago. Our personnel costs have increased in 2017 due to cost-of-living increases and new hires to support our growth, but are offset by a $0.5 million refund in medical benefits premiums recorded in the second quarter.
Our efficiency ratio for the second quarter of 2017 improved to 52.2% compared with 56.8% in the first quarter of 2017 and 57.4% in the second quarter of 2016.
Income Tax Provision
The effective tax rate for the second quarter of 2017 was 35.6% compared with 29.6% for the first quarter of 2017 and 37.9% in the second quarter of 2016. Income tax expense for the second quarter of 2017 increased compared with the first quarter of 2017 due to tax benefits related to tax-deductible stock compensation expense and the reversal of a liability related to unrecognized tax credits, all totaling $0.6 million in taxable benefits for the first quarter of 2017. The tax rate in the second quarter of 2017 is lower than the same quarter in 2016 due primarily to adjustments in the expected recoverability of certain tax credits.
Loans and Credit Quality
Loans held for investment at June 30, 2017 increased $105.6 million, or 9.6% year-over-year, and $81.5 million, or 7.3% from December 31, 2016. Average loans grew $80.8 million to $1.2 billion from the second quarter of 2016 to the current quarter of 2017.
Non-performing loans increased to $7.6 million at June 30, 2017, compared to $5.7 million at March 31, 2017, $5.4 million at December 31, 2016, and $5.4 million at June 30, 2016. Non-performing assets to total assets were 0.47% at June 30, 2017, 0.35% at March 31, 2017, 0.34% at December 31, 2016, and 0.38% at June 30, 2016. The allowance for loan losses to loans held for investment was 1.43% at June 30, 2017, 1.44% at March 31, 2017, 1.49% at December 31, 2016 and 1.47% at June 30, 2016.
Investment Securities
Investment securities at June 30, 2017 increased by 17.7% to $402.6 million compared with $342.1 million at the same period a year earlier as a result of the year-over-year growth in deposits.
Deposits and Liabilities
Total deposits at June 30, 2017 were $1.46 billion compared with $1.43 billion at December 31, 2016 and $1.35 billion at June 30, 2016. Increases during these periods were primarily due to growth of the client base and new customers. Non-interest-bearing deposits were 31.9% of total deposits as of June 30, 2017 compared with 31.1% as of December 31, 2016 and 31.9% as of June 30, 2016.
Shareholders’ Equity
Shareholders’ equity increased to $239.9 million at June 30, 2017 compared with $228.5 million as of year-end 2016 and $220.4 million at June 30, 2016. The increase resulted primarily from net income during the intervening periods net of cash dividends paid to shareholders.
Conference Call and Webcast
Management will conduct a live conference call and webcast for investors, analysts and the public relating to the Company's results for the second quarter of 2017 at 2:00 p.m. Eastern time on Thursday, July 27, 2017. The conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by telephone at 888-317-6003 (international calls 412-317-6061) and the conference ID is 3290312.
To participate on the webcast, log on to: http://services.choruscall.com/links/pub170728.html
If you are unable to participate during the live webcast, the call will be archived on www.peoplesutah.com or at the webcast URL above until August 28, 2017. Forward-looking and other material information may be discussed on this conference call.
Forward-Looking Statements
Statements in this release that are based on information other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date.
Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include: (i) market and economic conditions; (ii) capital sufficiency; (iii) operational, liquidity, interest rate and credit risks; (iv) deterioration of asset quality; (v) achieving loan and deposit growth; (vi) increased competition; (vii) adequacy of reserves; (viii) investments in new branches and new business opportunities; and (ix) changes in the regulatory or legal environment; as well as other factors discussed in the section titled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission.
The foregoing factors should not be construed as exhaustive. The Company does not intend, or undertake any obligation to publicly update these forward-looking statements.
About People’s Utah Bancorp
People’s Utah Bancorp is the holding company for People’s Intermountain Bank, which has 20 locations in two banking divisions, Bank of American Fork and Lewiston State Bank, a leasing division, GrowthFunding Equipment Finance, and a mortgage division, People’s Intermountain Bank Mortgage. PUB has a pending transaction, subject to customary closing conditions, to acquire Town & Country Bank, Inc. in St, George, Utah. PIB has been serving communities in Utah and southern Idaho for more than 100 years. PUB is committed to preserving the community-bank model with a full range of bank products and technologies. More information about PUB is available at www.peoplesutah.com.
| PEOPLE’S UTAH BANCORP | ||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (Dollars in thousands, except share | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| and per share data) | 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Interest income | ||||||||||||||||||||
| Interest and fees on loans | $ | 17,928 | $ | 16,853 | $ | 16,420 | $ | 34,781 | $ | 32,271 | ||||||||||
| Interest and dividends on investments | 1,802 | 1,705 | 1,489 | 3,507 | 3,092 | |||||||||||||||
| Total interest income | 19,730 | 18,558 | 17,909 | 38,288 | 35,363 | |||||||||||||||
| Interest expense | 749 | 766 | 698 | 1,515 | 1,452 | |||||||||||||||
| Net interest income | 18,981 | 17,792 | 17,211 | 36,773 | 33,911 | |||||||||||||||
| Provision for loan losses | 900 | 200 | 225 | 1,100 | 425 | |||||||||||||||
| Net interest income after provision for loan losses | 18,081 | 17,592 | 16,986 | 35,673 | 33,486 | |||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Service charges on deposit accounts | 578 | 536 | 531 | 1,114 | 1,044 | |||||||||||||||
| Card processing | 1,208 | 1,124 | 1,136 | 2,332 | 2,167 | |||||||||||||||
| Mortgage banking | 1,960 | 1,979 | 2,277 | 3,939 | 4,025 | |||||||||||||||
| Other operating | 602 | 486 | 454 | 1,088 | 925 | |||||||||||||||
| Total non-interest income | 4,348 | 4,125 | 4,398 | 8,473 | 8,161 | |||||||||||||||
| Non-interest expense | ||||||||||||||||||||
| Salaries and employee benefits | 7,762 | 7,967 | 7,959 | 15,729 | 15,843 | |||||||||||||||
| Occupancy, equipment and depreciation | 1,088 | 1,117 | 1,076 | 2,205 | 2,064 | |||||||||||||||
| Data processing | 661 | 675 | 740 | 1,336 | 1,447 | |||||||||||||||
| FDIC premiums | 130 | 126 | 188 | 256 | 383 | |||||||||||||||
| Card processing | 516 | 529 | 549 | 1,045 | 1,139 | |||||||||||||||
| Marketing and advertising | 349 | 262 | 290 | 611 | 459 | |||||||||||||||
| Other | 1,845 | 1,780 | 1,598 | 3,625 | 3,200 | |||||||||||||||
| Total non-interest expense | 12,351 | 12,456 | 12,400 | 24,807 | 24,535 | |||||||||||||||
| Income before income tax expense | 10,078 | 9,261 | 8,984 | 19,339 | 17,112 | |||||||||||||||
| Income tax expense | 3,584 | 2,740 | 3,407 | 6,324 | 6,292 | |||||||||||||||
| Net income | $ | 6,494 | $ | 6,521 | $ | 5,577 | $ | 13,015 | $ | 10,820 | ||||||||||
| Earnings per common share: | ||||||||||||||||||||
| Basic | $ | 0.37 | $ | 0.36 | $ | 0.31 | $ | 0.73 | $ | 0.61 | ||||||||||
| Diluted | $ | 0.35 | $ | 0.36 | $ | 0.31 | $ | 0.71 | $ | 0.60 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 17,937,926 | 17,884,026 | 17,738,182 | 17,911,125 | 17,685,235 | |||||||||||||||
| Diluted | 18,351,531 | 18,316,331 | 18,173,034 | 18,334,028 | 18,148,713 | |||||||||||||||
| PEOPLE’S UTAH BANCORP | ||||||||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| (Dollars in thousands, except share data) | 2017 | 2017 | 2016 | 2016 | ||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 28,315 | $ | 25,773 | $ | 26,524 | $ | 21,092 | ||||||||
| Interest bearing deposits | 26,027 | 62,171 | 37,958 | 59,535 | ||||||||||||
| Federal funds sold | 3,093 | 2,884 | 3,456 | 5,899 | ||||||||||||
| Total cash and cash equivalents | 57,435 | 90,828 | 67,938 | 86,526 | ||||||||||||
| Investment securities: | ||||||||||||||||
| Available for sale, at fair value | 325,172 | 334,249 | 335,609 | 280,705 | ||||||||||||
| Held to maturity, at historical cost | 77,394 | 78,041 | 73,512 | 61,437 | ||||||||||||
| Total investment securities | 402,566 | 412,290 | 409,121 | 342,142 | ||||||||||||
| Non-marketable equity securities | 1,959 | 1,959 | 1,827 | 1,827 | ||||||||||||
| Loans held for sale | 7,655 | 13,053 | 20,826 | 11,915 | ||||||||||||
| Loans: | ||||||||||||||||
| Loans held for investment | 1,201,391 | 1,152,030 | 1,119,877 | 1,095,828 | ||||||||||||
| Less allowance for loan losses | (17,271 | ) | (16,644 | ) | (16,715 | ) | (16,152 | ) | ||||||||
| Total loans held for investment, net | 1,184,120 | 1,135,386 | 1,103,162 | 1,079,676 | ||||||||||||
| Premises and equipment, net | 23,551 | 22,701 | 21,926 | 22,120 | ||||||||||||
| Accrued interest receivable | 5,616 | 5,779 | 5,557 | 5,586 | ||||||||||||
| Deferred income tax assets | 9,845 | 9,731 | 9,799 | 7,495 | ||||||||||||
| Other real estate owned | 468 | 245 | 245 | 644 | ||||||||||||
| Bank-owned life insurance | 19,970 | 19,842 | 19,714 | 19,448 | ||||||||||||
| Other assets | 5,190 | 5,834 | 5,866 | 5,637 | ||||||||||||
| Total assets | $ | 1,718,375 | $ | 1,717,648 | $ | 1,665,981 | $ | 1,583,016 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Non-interest bearing deposits | $ | 465,988 | $ | 462,886 | $ | 443,100 | $ | 429,995 | ||||||||
| Interest bearing deposits | 995,064 | 1,005,779 | 981,974 | 916,368 | ||||||||||||
| Total deposits | 1,461,052 | 1,468,665 | 1,425,074 | 1,346,363 | ||||||||||||
| Short-term borrowings | 3,302 | 3,372 | 3,199 | 2,855 | ||||||||||||
| Accrued interest payable | 269 | 279 | 305 | 303 | ||||||||||||
| Other liabilities | 13,850 | 11,087 | 8,886 | 13,048 | ||||||||||||
| Total liabilities | 1,478,473 | 1,483,403 | 1,437,464 | 1,362,569 | ||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Shareholders’ equity: | ||||||||||||||||
| Preferred shares, $0.01 par value | - | - | - | - | ||||||||||||
| Common shares, $0.01 par value | 179 | 179 | 178 | 178 | ||||||||||||
| Additional paid-in capital | 69,623 | 69,256 | 68,657 | 68,236 | ||||||||||||
| Retained earnings | 170,840 | 165,782 | 160,692 | 150,568 | ||||||||||||
| Accumulated other comprehensive income | (740 | ) | (972 | ) | (1,010 | ) | 1,465 | |||||||||
| Total shareholders’ equity | 239,902 | 234,245 | 228,517 | 220,447 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,718,375 | $ | 1,717,648 | $ | 1,665,981 | $ | 1,583,016 | ||||||||
| Common shares outstanding | 17,948,347 | 17,925,284 | 17,819,538 | 17,752,820 | ||||||||||||
| PEOPLE’S UTAH BANCORP | ||||||||||||||||
| SUMMARY FINANCIAL INFORMATION | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| (Dollars in thousands, except share data) | 2017 | 2017 | 2016 | 2016 | ||||||||||||
| Selected Balance Sheet Information: | ||||||||||||||||
| Book value per share | $ | 13.37 | $ | 13.07 | $ | 12.82 | $ | 12.42 | ||||||||
| Tangible book value per share | $ | 13.34 | $ | 13.04 | $ | 12.79 | $ | 12.38 | ||||||||
| Non-performing assets to total assets | 0.47 | % | 0.35 | % | 0.34 | % | 0.38 | % | ||||||||
| Allowance for loan losses to loans held for investment | 1.43 | % | 1.44 | % | 1.49 | % | 1.47 | % | ||||||||
| Loans to Deposits | 81.57 | % | 78.20 | % | 78.87 | % | 81.08 | % | ||||||||
| Asset Quality Data: | ||||||||||||||||
| Non-performing loans | $ | 7,611 | $ | 5,703 | $ | 5,357 | $ | 5,383 | ||||||||
| Non-performing assets | 8,079 | 5,948 | 5,602 | 6,027 | ||||||||||||
| Capital Ratios: | ||||||||||||||||
| Tier 1 leverage capital (1) | 14.15 | % | 14.10 | % | 13.71 | % | 13.99 | % | ||||||||
| Total risk-based capital (1) | 19.81 | % | 20.11 | % | 20.19 | % | 19.20 | % | ||||||||
| Average equity to average assets | 14.00 | % | 13.93 | % | 13.83 | % | 13.89 | % | ||||||||
| Tangible common equity to tangible assets (4) | 13.93 | % | 13.61 | % | 13.69 | % | 13.89 | % | ||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
| Selected Financial Information: | ||||||||||||||||||||
| Basic earnings per share | $ | 0.37 | $ | 0.36 | $ | 0.31 | $ | 0.73 | $ | 0.61 | ||||||||||
| Diluted earnings per share | $ | 0.35 | $ | 0.36 | $ | 0.31 | $ | 0.71 | $ | 0.60 | ||||||||||
| Net interest margin (2) | 4.71 | % | 4.55 | % | 4.67 | % | 4.63 | % | 4.63 | % | ||||||||||
| Efficiency ratio (3) | 52.19 | % | 56.83 | % | 57.38 | % | 54.44 | % | 58.32 | % | ||||||||||
| Non-interest income to average assets | 1.03 | % | 1.00 | % | 1.13 | % | 1.02 | % | 1.06 | % | ||||||||||
| Non-interest expense to average assets | 2.92 | % | 3.03 | % | 3.19 | % | 2.97 | % | 3.17 | % | ||||||||||
| Return on average assets | 1.53 | % | 1.59 | % | 1.43 | % | 1.56 | % | 1.40 | % | ||||||||||
| Return on average equity | 10.91 | % | 11.39 | % | 10.26 | % | 11.14 | % | 10.07 | % | ||||||||||
| Net charge-offs (recoveries) | 273 | 271 | (204 | ) | 544 | (170 | ) | |||||||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.09 | % | 0.10 | % | -0.07 | % | 0.09 | % | -0.03 | % | ||||||||||
| Average Balances: | ||||||||||||||||||||
| Average loans | $ | 1,177,403 | $ | 1,135,689 | $ | 1,096,584 | $ | 1,156,661 | $ | 1,078,687 | ||||||||||
| Average earning assets | 1,614,867 | 1,585,312 | 1,481,879 | 1,600,171 | 1,474,149 | |||||||||||||||
| Average total assets | 1,698,666 | 1,667,071 | 1,563,509 | 1,682,956 | 1,555,227 | |||||||||||||||
| Average shareholders’ equity | 238,765 | 232,269 | 218,705 | 235,535 | 216,074 | |||||||||||||||
| (1) Tier 1 leverage capital and Total risk-based capital as of June 30, 2017 are estimates. | ||||||||||||||||||||
| (2) Net interest margin is defined as net interest income divided by average earning assets. | ||||||||||||||||||||
| (3) Represents the sum of non-interest expense less merger and acquisitions costs all divided by the sum of net interest income and non-interest income. Merger and acquisitions costs were $175,000 for the period ending June 30, 2017. There were no merger and acquisitions costs in the first quarter of 2017 or in any period during 2016 | ||||||||||||||||||||
| (4) Represents the sum of total shareholders’ equity less intangible assets all divided by the sum of total assets less intangible assets. Intangible assets were $533,000, $557,000, $581,000 and $630,000 at June 30, 2017, March 31, 2017, December 31, 2016, and June 30, 2016, respectively. | ||||||||||||||||||||
| PEOPLE’S UTAH BANCORP | |||||||||||||||||||||||||
| SELECTED AVERAGE BALANCES AND YIELDS | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| (Dollars in thousands, except footnotes) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
| Taxable securities (1) | $ | 319,877 | $ | 1,309 | 1.64 | % | $ | 271,850 | $ | 1,047 | 1.55 | % | |||||||||||||
| Non-taxable securities (1) (2) | 93,688 | 432 | 1.85 | % | 90,428 | 420 | 1.87 | % | |||||||||||||||||
| Loans (3) (4) | 1,177,403 | 17,928 | 6.11 | % | 1,096,584 | 16,420 | 6.02 | % | |||||||||||||||||
| Total interest earning assets | 1,614,867 | 19,730 | 4.90 | % | 1,481,879 | 17,909 | 4.86 | % | |||||||||||||||||
| Total average assets | 1,698,666 | 1,563,509 | |||||||||||||||||||||||
| Total interest bearing deposits | 980,562 | 721 | 0.29 | % | 908,496 | 697 | 0.31 | % | |||||||||||||||||
| Shareholders’ equity | 238,765 | 218,705 | |||||||||||||||||||||||
| Net interest income | 18,981 | 17,211 | |||||||||||||||||||||||
| Net interest margin | 4.71 | % | 4.67 | % | |||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| (Dollars in thousands, except footnotes) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
| Taxable securities (1) | $ | 317,342 | $ | 2,510 | 1.59 | % | $ | 281,738 | $ | 2,186 | 1.56 | % | |||||||||||||
| Non-taxable securities (1) (2) | 92,930 | 854 | 1.85 | % | 92,923 | 863 | 1.87 | % | |||||||||||||||||
| Loans (3) (4) | 1,156,661 | 34,781 | 6.06 | % | 1,078,687 | 32,272 | 6.02 | % | |||||||||||||||||
| Total interest earning assets | 1,600,171 | 38,288 | 4.83 | % | 1,474,149 | 35,363 | 4.82 | % | |||||||||||||||||
| Total average assets | 1,682,956 | 1,555,227 | |||||||||||||||||||||||
| Total interest bearing deposits | 985,379 | 1,486 | 0.30 | % | 905,657 | 1,414 | 0.31 | % | |||||||||||||||||
| Shareholders’ equity | 235,535 | 216,074 | |||||||||||||||||||||||
| Net interest income | 36,773 | 33,911 | |||||||||||||||||||||||
| Net interest margin | 4.63 | % | 4.63 | % | |||||||||||||||||||||
| (1) Excludes average unrealized gains (losses) of $786,000 and $1.5 million for the three months ended June 30, 2017 and 2016, respectively, and ($1.2) million and $1.1 million for the six months ended June 30, 2017 and 2016, respectively. | |||||||||||||||||||||||||
| (2) Does not include tax effect on tax-exempt investment security income of $233,000 and $226,000 for the three months ended June 30, 2017 and 2016, respectively and $460,000 and $464,000 for the six months ended June 30, 2017 and 2016, respectively. | |||||||||||||||||||||||||
| (3) Loan interest income includes loan fees of $1.6 million and $1.4 million for the three months ended June 30, 2017 and 2016, respectively, and $3.0 million and $2.8 million for the six months ended June 30, 2017 and 2016, respectively. | |||||||||||||||||||||||||
| (4) Excludes average non-accrual loans of $6.6 million and $5.3 million for the three months ended June 30, 2017 and 2016, respectively, and $6.1 million and $5.8 million for the six months ended June 30, 2017 and 2016, respectively. | |||||||||||||||||||||||||