Community Trust Bancorp, Inc. Reports Earnings for the 2nd Quarter 2024
Earnings Summary
Earnings Summary |
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(in thousands except per share data) |
2Q 2024 |
1Q
|
2Q
2023 |
YTD
2024 |
YTD
2023 |
Net income |
|
|
|
|
|
Earnings per share |
|
|
|
|
|
Earnings per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
1.35% |
1.30% |
1.41% |
1.33% |
1.42% |
Return on average equity |
11.03% |
10.61% |
11.72% |
10.82% |
11.87% |
Efficiency ratio |
52.17% |
54.94% |
53.52% |
53.51% |
54.40% |
Tangible common equity |
11.39% |
11.10% |
10.90% |
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Dividends declared per share |
|
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|
|
Book value per share |
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|
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|
|
|
|
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Weighted average shares |
17,939 |
17,926 |
17,884 |
17,932 |
17,877 |
Weighted average shares - diluted |
17,959 |
17,943 |
17,890 |
17,951 |
17,885 |
2nd Quarter 2024 Highlights
-
Net interest income for the quarter of
$45.7 million was$2.1 million , or 4.8%, above prior quarter and$2.6 million , or 6.0%, above prior year same quarter, as our net interest margin increased 15 basis points from prior quarter and 3 basis points from prior year same quarter.
-
Provision for credit losses at
$3.0 million for the quarter increased$0.3 million from prior quarter and$1.0 million from prior year same quarter.
-
Noninterest income for the quarter ended
June 30, 2024 of$15.7 million was$0.6 million , or 3.8%, above prior quarter and$1.0 million , or 6.5%, above prior year same quarter.
-
Noninterest expense for the quarter ended
June 30, 2024 of$32.4 million was$0.2 million , or 0.6%, above prior quarter and$1.4 million , or 4.5%, above prior year same quarter.
-
Our loan portfolio at
$4.3 billion increased$100.1 million , an annualized 9.7%, fromMarch 31, 2024 and$331.6 million , or 8.4%, fromJune 30, 2023 .
-
We had net loan charge-offs of
$1.4 million , or an annualized 0.13% of average loans, for the second quarter 2024 compared to$1.6 million , or an annualized 0.16% of average loans, for the first quarter 2024 and$0.7 million , or an annualized 0.07% of average loans, for the second quarter 2023.
-
Our total nonperforming loans increased to
$19.8 million atJune 30, 2024 from$15.9 million atMarch 31, 2024 and$11.7 million atJune 30, 2023 . Nonperforming assets at$21.5 million increased$4.3 million fromMarch 31, 2024 and$7.7 million fromJune 30, 2023 .
-
Deposits, including repurchase agreements, at
$5.0 billion decreased$57.6 million , or an annualized 4.6%, fromMarch 31, 2024 but increased$215.7 million , or 4.5%, fromJune 30, 2023 .
-
Shareholders’ equity at
$719.3 million increased$11.6 million , or an annualized 6.6%, during the quarter and$59.2 million , or 9.0%, fromJune 30, 2023 .
Net Interest Income
Percent Change |
|
|||||||
2Q 2024 Compared to: |
||||||||
($ in thousands) |
2Q 2024 |
1Q 2024 |
2Q 2023 |
1Q 2024 |
2Q 2023 |
YTD 2024 |
YTD 2023 |
Percent
|
Components of net interest income: |
||||||||
Income on earning assets |
|
|
|
2.2% |
18.2% |
|
|
20.5% |
Expense on interest bearing liabilities |
30,970 |
31,411 |
21,748 |
(1.4%) |
42.4% |
62,381 |
38,827 |
60.7% |
Net interest income |
45,678 |
43,591 |
43,079 |
4.8% |
6.0% |
89,269 |
86,995 |
2.6% |
TEQ |
292 |
294 |
298 |
(0.7%) |
(2.1%) |
586 |
596 |
(1.7%) |
Net interest income, tax equivalent |
|
|
|
4.8% |
6.0% |
|
|
2.6% |
|
|
|
|
|
|
|
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Average yield and rates paid: |
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Earning assets yield |
5.66% |
5.55% |
5.03% |
2.0% |
12.4% |
5.60% |
4.94% |
13.4% |
Rate paid on interest bearing liabilities |
3.30% |
3.35% |
2.54% |
(1.5%) |
29.9% |
3.32% |
2.30% |
44.3% |
Gross interest margin |
2.36% |
2.20% |
2.49% |
7.2% |
(5.4%) |
2.28% |
2.64% |
(13.5%) |
Net interest margin |
3.38% |
3.23% |
3.35% |
4.5% |
0.9% |
3.31% |
3.42% |
(3.4%) |
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Average balances: |
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Investment securities |
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|
(4.6%) |
(11.0%) |
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|
(9.6%) |
Loans |
|
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|
2.3% |
9.3% |
|
|
9.4% |
Earning assets |
|
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|
0.2% |
5.4% |
|
|
5.9% |
Interest-bearing liabilities |
|
|
|
0.1% |
9.9% |
|
|
11.1% |
Net interest income for the quarter of
Our ratio of average loans to deposits, including repurchase agreements, was 84.5% for the quarter ended
Noninterest Income
|
Percent Change |
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|
2Q 2024 Compared to: |
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($ in thousands) |
2Q 2024 |
1Q 2024 |
2Q 2023 |
1Q 2024 |
2Q 2023 |
YTD 2024 |
YTD 2023 |
Percent
|
Deposit related fees |
|
|
|
4.2% |
(2.7%) |
|
|
(3.2%) |
Trust revenue |
3,736 |
3,517 |
3,351 |
6.2% |
11.5% |
7,253 |
6,430 |
12.8% |
Gains on sales of loans |
119 |
45 |
115 |
167.9% |
4.0% |
164 |
236 |
(30.5%) |
Loan related fees |
1,320 |
1,352 |
1,197 |
(2.4%) |
10.3% |
2,672 |
2,042 |
30.8% |
Bank owned life insurance revenue |
1,815 |
1,292 |
735 |
40.5% |
147.0% |
3,107 |
1,593 |
95.0% |
Brokerage revenue |
683 |
490 |
388 |
39.5% |
76.2% |
1,173 |
736 |
59.5% |
Other |
727 |
1,427 |
1,457 |
(49.1%) |
(50.1%) |
2,154 |
2,601 |
(17.2%) |
Total noninterest income |
|
|
|
3.8% |
6.4% |
|
|
8.5% |
Noninterest income for the quarter ended
Noninterest Expense
Percent Change |
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2Q 2024 Compared to: |
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($ in thousands) |
2Q 2024 |
1Q 2024 |
2Q 2023 |
1Q 2024 |
2Q 2023 |
YTD 2024 |
YTD 2023 |
Percent Change |
Salaries |
|
|
|
0.0% |
2.4% |
|
|
2.8% |
Employee benefits |
6,554 |
7,086 |
5,573 |
(7.5%) |
17.6% |
13,640 |
11,848 |
15.1% |
Net occupancy and equipment |
3,089 |
3,028 |
2,895 |
2.0% |
6.7% |
6,117 |
5,923 |
3.3% |
Data processing |
2,669 |
2,518 |
2,383 |
6.0% |
12.0% |
5,187 |
4,686 |
10.7% |
Legal and professional fees |
978 |
832 |
912 |
17.5% |
7.3% |
1,810 |
1,728 |
4.8% |
Advertising and marketing |
856 |
577 |
704 |
48.2% |
21.6% |
1,433 |
1,524 |
(6.0%) |
Taxes other than property and payroll |
438 |
442 |
433 |
(0.7%) |
1.2% |
880 |
865 |
1.7% |
Other |
4,801 |
4,701 |
5,393 |
2.1% |
(11.0%) |
9,502 |
10,976 |
(13.4%) |
Total noninterest expense |
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|
|
0.6% |
4.5% |
|
|
2.7% |
Noninterest expense for the quarter ended
Balance Sheet Review
Total Loans
Percent Change |
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2Q 2024 Compared to: |
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($ in thousands) |
2Q 2024 |
1Q 2024 |
2Q 2023 |
1Q 2024 |
2Q 2023 |
Commercial nonresidential real estate |
|
|
|
1.5% |
4.9% |
Commercial residential real estate |
480,418 |
456,585 |
393,309 |
5.2% |
22.1% |
Hotel/motel |
417,161 |
416,759 |
372,981 |
0.1% |
11.8% |
Other commercial |
428,263 |
397,922 |
396,741 |
7.6% |
7.9% |
Total commercial |
2,151,776 |
2,085,170 |
1,950,629 |
3.2% |
10.3% |
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|
|
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Residential mortgage |
978,144 |
955,616 |
883,104 |
2.4% |
10.8% |
Home equity loans/lines |
154,311 |
151,577 |
132,033 |
1.8% |
16.9% |
Total residential |
1,132,455 |
1,107,193 |
1,015,137 |
2.3% |
11.6% |
|
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|
|||
Consumer indirect |
819,689 |
813,005 |
806,081 |
0.8% |
1.7% |
Consumer direct |
157,327 |
155,807 |
157,848 |
1.0% |
(0.3%) |
Total consumer |
977,016 |
968,812 |
963,929 |
0.8% |
1.4% |
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|||
Total loans |
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|
|
2.4% |
8.4% |
Total Deposits and Repurchase Agreements
Percent Change |
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2Q 2024 Compared to: |
|||||
($ in thousands) |
2Q 2024 |
1Q 2024 |
2Q 2023 |
1Q 2024 |
2Q 2023 |
Noninterest bearing deposits |
|
|
|
(2.6%) |
(8.8%) |
Interest bearing deposits |
|
|
|
||
Interest checking |
138,767 |
131,227 |
142,542 |
5.7% |
(2.6%) |
Money market savings |
1,664,580 |
1,608,849 |
1,389,081 |
3.5% |
19.8% |
Savings accounts |
527,251 |
543,338 |
611,772 |
(3.0%) |
(13.8%) |
Time deposits |
1,161,686 |
1,226,273 |
1,012,187 |
(5.3%) |
14.8% |
Repurchase agreements |
227,576 |
234,671 |
229,020 |
(3.0%) |
(0.6%) |
Total interest bearing deposits and repurchase agreements |
3,719,860 |
3,744,358 |
3,384,602 |
(0.7%) |
9.9% |
Total deposits and repurchase agreements |
|
|
|
(1.1%) |
4.5% |
CTBI’s total assets at
Shareholders’ equity at
Asset Quality
Our total nonperforming loans increased to
We had net loan charge-offs of
Allowance for Credit Losses
Our provision for credit losses at
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. CTBI’s actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of epidemics, pandemics, or other infectious disease outbreaks; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the
Additional information follows.
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Financial Summary (Unaudited) | ||||||||||||||||||||
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(in thousands except per share data and # of employees) | ||||||||||||||||||||
Three | Three | Three | Six | Six | ||||||||||||||||
Months | Months | Months | Months | Months | ||||||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
|
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|
|
|
||||||||||||||||
Interest income |
$ |
76,648 |
|
$ |
75,002 |
|
$ |
64,827 |
|
$ |
151,650 |
|
$ |
125,822 |
|
|||||
Interest expense |
|
30,970 |
|
|
31,411 |
|
|
21,748 |
|
|
62,381 |
|
|
38,827 |
|
|||||
Net interest income |
|
45,678 |
|
|
43,591 |
|
|
43,079 |
|
|
89,269 |
|
|
86,995 |
|
|||||
Loan loss provision |
|
2,972 |
|
|
2,656 |
|
|
2,009 |
|
|
5,628 |
|
|
3,125 |
|
|||||
Gains on sales of loans |
|
119 |
|
|
45 |
|
|
115 |
|
|
164 |
|
|
236 |
|
|||||
Deposit related fees |
|
7,308 |
|
|
7,011 |
|
|
7,513 |
|
|
14,319 |
|
|
14,800 |
|
|||||
Trust revenue |
|
3,736 |
|
|
3,517 |
|
|
3,351 |
|
|
7,253 |
|
|
6,430 |
|
|||||
Loan related fees |
|
1,320 |
|
|
1,352 |
|
|
1,197 |
|
|
2,672 |
|
|
2,042 |
|
|||||
Securities gains (losses) |
|
(474 |
) |
|
371 |
|
|
165 |
|
|
(103 |
) |
|
383 |
|
|||||
Other noninterest income |
|
3,699 |
|
|
2,838 |
|
|
2,415 |
|
|
6,537 |
|
|
4,547 |
|
|||||
Total noninterest income |
|
15,708 |
|
|
15,134 |
|
|
14,756 |
|
|
30,842 |
|
|
28,438 |
|
|||||
Personnel expense |
|
19,591 |
|
|
20,122 |
|
|
18,305 |
|
|
39,713 |
|
|
37,213 |
|
|||||
Occupancy and equipment |
|
3,089 |
|
|
3,028 |
|
|
2,895 |
|
|
6,117 |
|
|
5,923 |
|
|||||
Data processing expense |
|
2,669 |
|
|
2,518 |
|
|
2,383 |
|
|
5,187 |
|
|
4,686 |
|
|||||
|
|
645 |
|
|
642 |
|
|
610 |
|
|
1,287 |
|
|
1,216 |
|
|||||
Other noninterest expense |
|
6,428 |
|
|
5,910 |
|
|
6,832 |
|
|
12,338 |
|
|
13,877 |
|
|||||
Total noninterest expense |
|
32,422 |
|
|
32,220 |
|
|
31,025 |
|
|
64,642 |
|
|
62,915 |
|
|||||
Net income before taxes |
|
25,992 |
|
|
23,849 |
|
|
24,801 |
|
|
49,841 |
|
|
49,393 |
|
|||||
Income taxes |
|
6,493 |
|
|
5,170 |
|
|
5,397 |
|
|
11,663 |
|
|
10,676 |
|
|||||
Net income |
$ |
19,499 |
|
$ |
18,679 |
|
$ |
19,404 |
|
$ |
38,178 |
|
$ |
38,717 |
|
|||||
Memo: TEQ interest income |
$ |
76,940 |
|
$ |
75,296 |
|
$ |
65,125 |
|
$ |
152,236 |
|
$ |
126,418 |
|
|||||
Average shares outstanding |
|
17,939 |
|
|
17,926 |
|
|
17,884 |
|
|
17,932 |
|
|
17,877 |
|
|||||
Diluted average shares outstanding |
|
17,959 |
|
|
17,943 |
|
|
17,890 |
|
|
17,951 |
|
|
17,885 |
|
|||||
Basic earnings per share |
$ |
1.09 |
|
$ |
1.04 |
|
$ |
1.09 |
|
$ |
2.13 |
|
$ |
2.17 |
|
|||||
Diluted earnings per share |
$ |
1.09 |
|
$ |
1.04 |
|
$ |
1.08 |
|
$ |
2.13 |
|
$ |
2.16 |
|
|||||
Dividends per share |
$ |
0.46 |
|
$ |
0.46 |
|
$ |
0.44 |
|
$ |
0.92 |
|
$ |
0.88 |
|
|||||
Average balances: | ||||||||||||||||||||
Loans |
$ |
4,191,992 |
|
$ |
4,096,866 |
|
$ |
3,836,446 |
|
$ |
4,144,429 |
|
$ |
3,788,213 |
|
|||||
Earning assets |
|
5,469,813 |
|
|
5,458,075 |
|
|
5,189,716 |
|
|
5,463,944 |
|
|
5,160,712 |
|
|||||
Total assets |
|
5,795,937 |
|
|
5,786,515 |
|
|
5,509,776 |
|
|
5,791,226 |
|
|
5,484,065 |
|
|||||
Deposits, including repurchase agreements |
|
4,959,382 |
|
|
4,956,820 |
|
|
4,727,386 |
|
|
4,958,101 |
|
|
4,707,853 |
|
|||||
Interest bearing liabilities |
|
3,776,362 |
|
|
3,773,513 |
|
|
3,435,072 |
|
|
3,774,937 |
|
|
3,398,902 |
|
|||||
Shareholders' equity |
|
711,331 |
|
|
708,341 |
|
|
663,896 |
|
|
709,836 |
|
|
657,488 |
|
|||||
Performance ratios: | ||||||||||||||||||||
Return on average assets |
|
1.35 |
% |
|
1.30 |
% |
|
1.41 |
% |
|
1.33 |
% |
|
1.42 |
% |
|||||
Return on average equity |
|
11.03 |
% |
|
10.61 |
% |
|
11.72 |
% |
|
10.82 |
% |
|
11.87 |
% |
|||||
Yield on average earning assets (tax equivalent) |
|
5.66 |
% |
|
5.55 |
% |
|
5.03 |
% |
|
5.60 |
% |
|
4.94 |
% |
|||||
Cost of interest bearing funds (tax equivalent) |
|
3.30 |
% |
|
3.35 |
% |
|
2.54 |
% |
|
3.32 |
% |
|
2.30 |
% |
|||||
Net interest margin (tax equivalent) |
|
3.38 |
% |
|
3.23 |
% |
|
3.35 |
% |
|
3.31 |
% |
|
3.42 |
% |
|||||
Efficiency ratio (tax equivalent) |
|
52.17 |
% |
|
54.94 |
% |
|
53.52 |
% |
|
53.51 |
% |
|
54.40 |
% |
|||||
Loan charge-offs |
$ |
2,836 |
|
$ |
2,667 |
|
$ |
1,953 |
|
$ |
5,503 |
|
$ |
3,718 |
|
|||||
Recoveries |
|
(1,441 |
) |
|
(1,039 |
) |
|
(1,279 |
) |
|
(2,480 |
) |
|
(2,630 |
) |
|||||
Net charge-offs |
$ |
1,395 |
|
$ |
1,628 |
|
$ |
674 |
|
$ |
3,023 |
|
$ |
1,088 |
|
|||||
Market Price: | ||||||||||||||||||||
High |
$ |
44.32 |
|
$ |
44.38 |
|
$ |
40.30 |
|
$ |
44.38 |
|
$ |
47.35 |
|
|||||
Low |
$ |
39.28 |
|
$ |
38.44 |
|
$ |
32.68 |
|
$ |
38.44 |
|
$ |
32.68 |
|
|||||
Close |
$ |
43.66 |
|
$ |
42.65 |
|
$ |
35.57 |
|
$ |
43.66 |
|
$ |
35.57 |
|
|||||
As of | As of | As of | ||||||||||||||||||
|
|
|
||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans |
$ |
4,261,247 |
|
$ |
4,161,175 |
|
$ |
3,929,695 |
|
|||||||||||
Loan loss reserve |
|
(52,148 |
) |
|
(50,571 |
) |
|
(48,018 |
) |
|||||||||||
Net loans |
|
4,209,099 |
|
|
4,110,604 |
|
|
3,881,677 |
|
|||||||||||
Loans held for sale |
|
350 |
|
|
57 |
|
|
238 |
|
|||||||||||
Securities AFS |
|
1,090,322 |
|
|
1,111,505 |
|
|
1,201,253 |
|
|||||||||||
Equity securities at fair value |
|
3,054 |
|
|
3,529 |
|
|
2,545 |
|
|||||||||||
Other equity investments |
|
14,022 |
|
|
9,327 |
|
|
11,432 |
|
|||||||||||
Other earning assets |
|
108,823 |
|
|
239,554 |
|
|
62,726 |
|
|||||||||||
Cash and due from banks |
|
54,935 |
|
|
55,841 |
|
|
48,915 |
|
|||||||||||
Premises and equipment |
|
47,178 |
|
|
46,595 |
|
|
42,911 |
|
|||||||||||
Right of use asset |
|
15,121 |
|
|
15,500 |
|
|
16,678 |
|
|||||||||||
|
|
65,490 |
|
|
65,490 |
|
|
65,490 |
|
|||||||||||
Other assets |
|
195,945 |
|
|
192,253 |
|
|
186,933 |
|
|||||||||||
Total Assets |
$ |
5,804,339 |
|
$ |
5,850,255 |
|
$ |
5,520,798 |
|
|||||||||||
Liabilities and Equity: | ||||||||||||||||||||
Interest bearing checking |
$ |
138,767 |
|
$ |
131,227 |
|
$ |
142,542 |
|
|||||||||||
Savings deposits |
|
2,191,831 |
|
|
2,152,187 |
|
|
2,000,853 |
|
|||||||||||
CD's >= |
|
637,206 |
|
|
678,148 |
|
|
538,492 |
|
|||||||||||
Other time deposits |
|
524,480 |
|
|
548,125 |
|
|
473,695 |
|
|||||||||||
Total interest bearing deposits |
|
3,492,284 |
|
|
3,509,687 |
|
|
3,155,582 |
|
|||||||||||
Noninterest bearing deposits |
|
1,241,514 |
|
|
1,274,583 |
|
|
1,361,078 |
|
|||||||||||
Total deposits |
|
4,733,798 |
|
|
4,784,270 |
|
|
4,516,660 |
|
|||||||||||
Repurchase agreements |
|
227,576 |
|
|
234,671 |
|
|
229,020 |
|
|||||||||||
Other interest bearing liabilities |
|
64,954 |
|
|
65,014 |
|
|
65,195 |
|
|||||||||||
Lease liability |
|
15,880 |
|
|
16,208 |
|
|
17,317 |
|
|||||||||||
Other noninterest bearing liabilities |
|
42,808 |
|
|
42,368 |
|
|
32,481 |
|
|||||||||||
Total liabilities |
|
5,085,016 |
|
|
5,142,531 |
|
|
4,860,673 |
|
|||||||||||
Shareholders' equity |
|
719,323 |
|
|
707,724 |
|
|
660,125 |
|
|||||||||||
Total Liabilities and Equity |
$ |
5,804,339 |
|
$ |
5,850,255 |
|
$ |
5,520,798 |
|
|||||||||||
Ending shares outstanding |
|
18,026 |
|
|
18,019 |
|
|
17,984 |
|
|||||||||||
30 - 89 days past due loans |
$ |
24,099 |
|
$ |
12,234 |
|
$ |
12,158 |
|
|||||||||||
90 days past due loans |
|
14,703 |
|
|
11,550 |
|
|
6,399 |
|
|||||||||||
Nonaccrual loans |
|
5,127 |
|
|
4,302 |
|
|
5,345 |
|
|||||||||||
Foreclosed properties |
|
1,626 |
|
|
1,266 |
|
|
2,047 |
|
|||||||||||
Community bank leverage ratio |
|
13.90 |
% |
|
13.74 |
% |
|
13.82 |
% |
|||||||||||
Tangible equity to tangible assets ratio |
|
11.39 |
% |
|
11.10 |
% |
|
10.90 |
% |
|||||||||||
FTE employees |
|
930 |
|
|
945 |
|
|
953 |
|
|||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240717141109/en/
Source: