FINANCIAL HIGHLIGHTS:
- First quarter 2017 GAAP net income
was $4.9 million, a 47% increase from $3.3 million for the first
quarter of 2016. Diluted earnings per common share for the first
quarter of 2017 was $0.13, a 44% increase from $0.09 for the first
quarter of 2016.
- First quarter 2017 core earnings
were $5.9 million, a 60% increase from $3.7 million for the first
quarter of 2016. Diluted core earnings per common share for the
first quarter of 2017 was $0.15, a 50% increase from $0.10 for the
first quarter of 2016.
- The Company’s efficiency ratio
improved to 63% in the first quarter of 2017 compared to 74% in the
first quarter of 2016. Further, the Company’s core efficiency ratio
improved to 56% in the first quarter of 2017 compared to 72% in the
first quarter of 2016.
- Net interest income increased 11%
for the first quarter of 2017 compared to the first quarter of 2016
primarily due to loan portfolio growth of 12% year over
year.
- The ratio of nonperforming assets to
total assets improved to 0.87% at March 31, 2017 compared to 1.23%
at March 31, 2016. Annualized net chargeoffs for the quarter ended
March 31, 2017 were 0.03% of average total loans.
- Book value per common share was
$6.31 at March 31, 2017, a 6% increase from $5.96 at March 31,
2016. Tangible book value per common share was $4.98 at March 31,
2017, an 8% increase from $4.59 at March 31, 2016.
Bear State Financial, Inc. (the “Company”) (NASDAQ: BSF), today
reported earnings of $4.9 million and earnings per diluted common
share of $0.13 in the first quarter of 2017, compared to earnings
of $3.3 million or $0.09 per diluted common share in the first
quarter of 2016. Core earnings for the first quarter of 2017 were
$5.9 million or $0.15 per diluted common share compared to core
earnings of $3.7 million or $0.10 per diluted common share in the
first quarter of 2016.
The company experienced record revenue of $23 million in the
first quarter of 2017 which is an increase of 12% compared to the
first quarter of 2016. Net interest income increased 11% for the
first quarter of 2017 compared to the first quarter of 2016
primarily due to loan portfolio growth. Noninterest income
increased 14% for the first quarter of 2017 compared to the first
quarter of 2016 primarily due to increases in gain on sale of loans
and deposit fee income.
Along with revenue growth, the Company continued to focus on
operational efficiency as evidenced by the decrease in noninterest
expense of 6% for the first quarter of 2017 compared to the first
quarter of 2016, resulting in an improvement in the Company’s
efficiency ratio to 63% in the first quarter of 2017 compared to
74% in the first quarter of 2016. Further, the Company’s core
efficiency ratio improved to 56% in the first quarter of 2017
compared to 72% in the first quarter of 2016. During the first
quarter of 2017, the Company consolidated three of its retail
branch locations and transitioned one limited service branch
location to operate using personalized technology with Interactive
ATMs (“ITMs”) only. Two additional retail branch locations will
transition to operate solely with ITMs in the second quarter of
2017.
FINANCIAL CONDITION
Total assets were $2.17 billion at March 31, 2017, a 13%
increase compared to $1.92 billion at March 31, 2016. The increase
in total assets was primarily due to increases in investment
securities and loans. Total loans were $1.64 billion at March 31,
2017, an increase of $180.2 million, or 12% compared to March 31,
2016 and investment securities were $250.5 million at March 31,
2017, an increase of $65.4 million, or 35% compared to March 31,
2016. Total deposits were $1.67 billion at March 31, 2017, a 4%
increase compared to $1.61 billion at March 31, 2016.
Total stockholders’ equity was $238 million at March 31, 2017, a
6% increase from $224 million at March 31, 2016. Tangible common
stockholders’ equity was $188 million at December 31, 2016, a 9%
increase from $172 million at March 31, 2016. Book value per common
share was $6.31 at March 31, 2017, a 6% increase from $5.96 at
March 31, 2016. Tangible book value per common share was $4.98 at
March 31, 2017, an 8% increase from $4.59 at March 31, 2016. The
Company’s ratio of total stockholders’ equity to total assets
decreased to 10.94% at March 31, 2017, compared to 11.64% at March
31, 2016. The calculation of the Company’s tangible book value per
common share, tangible common stockholders’ equity and the
reconciliation of such non-GAAP financial measures to the most
comparable GAAP measures are included in the schedules accompanying
this release.
RESULTS OF OPERATIONS
The Company recognized first quarter 2017 net income of $4.9
million or $0.13 per diluted common share compared to net income of
$3.3 million or $0.09 per diluted common share in the first quarter
of 2016, resulting in a return on average assets of 0.95% in the
first quarter of 2017, compared to 0.71% in the first quarter of
2016. Calculation of net income in accordance with GAAP includes
what the Company considers “non-core items,” which are items that
we do not consider indicative of our core operating performance and
which are not necessarily comparable from year to year. The Company
reports core earnings, which is a non-GAAP financial measure that
the Company defines as GAAP net income less non-core items. The
reconciliation of GAAP net income to core earnings together with
related financial measures and ratios is included in the schedules
accompanying this release.
First quarter 2017 core earnings totaled $5.9 million or $0.15
per diluted common share, compared to core earnings of $3.7 million
or $0.10 per diluted common share in the first quarter of 2016. The
core return on average assets measured 1.14% and 0.77%, core return
on average equity measured 10.06% and 6.61% and core return on
average tangible equity measured 12.80% and 8.58%, each for the
first quarters of 2017 and 2016, respectively. Non-core items
during the first quarter of 2017 included gain on sales of
investments of $11,000 and branch restructure expenses of $1.6
million, including $1.1 million of severance expense, primarily due
to severance of $0.8 million accrued upon the departure of our
former CEO in January 2017. The effect of non-core items, net of
taxes, decreased GAAP net income by approximately $946,000 for the
first quarter of 2017.
Net interest income for the first quarter of 2017 was $18.8
million compared to $16.9 million for the same period in 2016.
Interest income for the first quarter of 2017 was $21.0 million
compared to $18.8 million for the same period in 2016. The increase
in interest income for the quarter ended March 31, 2017, compared
to 2016 was primarily related to an increase in the average
balances of loans receivable and investment securities and an
increase in the yield earned on investment securities. Interest
expense for the first quarter of 2017 was $2.2 million compared to
$1.9 million for the same period in 2016. The increase in interest
expense for the first quarter of 2017 compared to the same period
in 2016 was primarily due to an increase in the average balance of
borrowings and an increase in the average rate paid on deposits,
partially offset by a decrease in the average rate paid on
borrowings.
Net interest margin measured 4.05% for the first quarter of
2017, compared to 4.03% for the same period in 2016. The average
yield on interest-earning assets for the first quarter of 2017 was
4.52% compared to 4.47% for the same period in 2016. The average
cost of interest-bearing liabilities increased to 0.55% for the
first quarter 2017, compared to 0.51% for the same period in
2016.
Noninterest income is generated primarily through deposit
account fee income, profit on sale of mortgage loans, and earnings
on life insurance policies. Total noninterest income for the three
months ended March 31, 2017 increased to $4.2 million from $3.7
million for the same period in 2016, a 14% increase. The increases
in the three month comparison period was primarily due to increases
in deposit fee income and gain on sales of mortgage loans.
Total noninterest expense decreased $0.9 million or 6% for the
first quarter of 2017 compared to the first quarter of 2016. The
decrease in total noninterest expense for the three month
comparative period was primarily related to the Company’s efforts
to improve its operational efficiency as well as transaction costs
incurred in connection with the integration of MNB in the first
quarter of 2016.
Income tax provision increased by $0.9 million or 60% for the
first quarter of 2017 compared to the first quarter of 2016. The
increase in income tax provision was primarily due to an increase
in taxable income. The Company’s effective tax rate for the quarter
ended March 31, 2017 was 31.9% compared to 30.1% for the quarter
ended March 31, 2016.
The ratio of nonperforming assets to total assets decreased to
0.87% at March 31, 2017, compared to 1.23% at March 31, 2016. The
allowance for loan losses represented 1.03% of total loans at March
31, 2017 compared to 1.02% at March 31, 2016. The ratio of
allowance for loan losses plus discount on acquired loans to total
loans was 1.58% at March 31, 2017, compared to 1.99% at March 31,
2016. The ratio of the allowance for loan losses to nonperforming
loans was 94% at March 31, 2017, compared to 73% at March 31, 2016.
Annualized net charge-offs as a percentage of average loans for the
quarter ended March 31, 2017 was 0.03% compared to 0.05% for the
quarter ended March 31, 2016. Provision for loan losses increased
from $489,000 for the first quarter of 2016 to $1.3 million for the
first quarter of 2017. The increase in the provision was primarily
attributable to loan originations and migration of acquired loans
from the purchased loan portfolio to the originated loan
portfolio.
About Bear State Financial, Inc.
Bear State Financial, Inc. is the parent company for Bear State
Bank. Bear State Financial, Inc. common stock is traded on the
NASDAQ Global Market under the symbol BSF. For more information on
Bear State Financial, please visit www.bearstatefinancial.com. Its
principal subsidiary, Bear State Bank, is a community oriented
financial institution providing a broad line of financial products
to individuals and business customers. Bear State Bank operates 44
branches and three loan production offices throughout Arkansas,
Southwest Missouri and Southeast Oklahoma.
Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures in
addition to results presented in accordance with accounting
principles generally accepted in the United States (“GAAP”). These
non-GAAP measures provide supplemental perspectives on operating
results, performance trends, and financial condition. They are not
a substitute for GAAP measures and they should be read and used in
conjunction with the Company’s GAAP financial information. In all
cases, it should be understood that non-GAAP per share measures do
not depict amounts that accrue directly to the benefit of
shareholders. The Company utilizes the non-GAAP measure of core
earnings, which management believes is useful in evaluating
operating trends from period to period, including components of
core revenue and core expense. Core earnings and its components
exclude amounts that the Company views as unrelated to its
normalized operations. Management and the Board of Directors also
utilize core earnings or components of core earnings and related
ratios in the preparation of the Company’s operating budgets,
monthly financial performance reporting and investor presentations
of Company performance and in the calculation of annual
performance-based incentives for certain members of management. In
2016, the Company modified its definition of core earnings to
clarify that a material amount of net gains, losses or impairments
to the Company’s real estate owned (“REO”) portfolio during an
applicable reporting period will be considered a non-core item and
will thus be excluded from core earnings. Immaterial net gains,
losses and impairments to the REO portfolio, however, will not be
considered a non-core item and will not be excluded from core
earnings. The Company believes that while activity within the REO
portfolio is a recurring aspect of its core business, material
changes to the portfolio are not indicative of the Company’s
normalized banking operations.
The Company also reports certain non-GAAP equity measures
(including tangible stockholders’ equity, tangible book value per
common share and related ratios) that exclude intangible assets
from their calculation. Management believes that these non-GAAP
tangible measures provide additional useful information about the
capital strength of the Company to the investment community, as
these measures are widely used by industry analysts for banks and
bank holding companies with prior merger and acquisition activity.
A reconciliation of non-GAAP financial measures to GAAP measures is
included in the accompanying financial tables.
Forward-Looking Statements
This press release contains statements about future events that
constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements may be identified by reference to a
future period or periods, or by the use of forward-looking
terminology, such as “may,” “will,” “believe,” “plan,” “intend,”
“anticipate,” “expect,” or similar terms or variations of those
terms, or the negative of those terms. Forward-looking statements
are subject to numerous risks and uncertainties, including, but not
limited to, those risks previously disclosed in the Company’s
filings with the SEC, general economic conditions, changes in
interest rates, regulatory considerations, competition,
technological developments, retention and recruitment of qualified
personnel, and market acceptance of Bear State Bank’s pricing,
products and services, and with respect to the loans extended by
Bear State Bank and real estate owned, market prices of the
property securing loans and the costs of collection and sales. The
Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the
date made. The Company does not undertake and specifically declines
any obligation to publicly release the result of any revisions that
may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
BEAR STATE FINANCIAL, INC. SELECTED CONSOLIDATED
FINANCIAL DATA – UNAUDITED (In thousands)
March December September
June March 2017 2016 2016
2016 2016
Balance sheet
data, at quarter end:
Commercial real estate - mortgage loans $ 604,888 $ 587,633 $
566,302 $ 557,612 $ 555,264 Consumer real estate - mortgage loans
398,106 389,592 385,642 390,743 395,509 Farmland 98,672 94,018
94,187 92,452 93,380 Construction and land development 129,078
125,785 119,433 124,369 117,283 Commercial and industrial loans
370,961 323,096 312,957 281,874 258,479 Consumer and other 36,100
36,265 36,645 36,339 37,673 Total loans 1,637,805 1,556,389
1,515,166 1,483,389 1,457,588 Loans held for sale 4,735 8,954
13,995 15,168 10,103 Allowance for loan losses (16,821 ) (15,584 )
(15,112 ) (14,751 ) (14,866 ) Investment securities 250,493 215,453
197,670 192,549 185,143 Goodwill 40,196 40,196 40,196 40,196 40,196
Core deposit intangible, net 10,098 10,353 10,608 10,863 11,119
Total assets 2,174,041 2,053,175 2,007,938 1,990,715 1,922,301
Noninterest-bearing deposits 221,891 223,038 239,831 255,648
216,173 Total deposits 1,669,066 1,644,080 1,653,523 1,641,250
1,610,718 Short term borrowings 17,831 19,114 13,511 14,964 8,990
FHLB advances 225,072 129,992 80,138 75,282 50,178 Other borrowings
13,506 22,012 22,518 22,900 22,681 Total stockholders' equity
237,912 233,427 232,403 228,534 223,798
Balance sheet
data, quarterly averages:
Total loans $ 1,607,892 $ 1,536,703 $ 1,522,106 $ 1,492,504 $
1,461,091 Investment securities 248,355 217,522 202,868 188,808
206,258 Total earning assets 1,886,813 1,810,802 1,768,892
1,724,381 1,702,917 Goodwill 40,196 40,196 40,196 40,196 40,196
Core deposit intangible, net 10,265 10,519 10,775 11,030 11,284
Total assets 2,092,022 2,019,792 1,981,582 1,937,722 1,920,833
Noninterest-bearing deposits 213,467 229,296 239,886 215,766
221,909 Interest-bearing deposits 1,414,137 1,416,991 1,395,501
1,394,262 1,369,759 Total deposits 1,627,604 1,646,287 1,635,387
1,610,028 1,591,668 Short term borrowings 15,549 17,983 13,699
11,991 12,163 FHLB advances 190,965 94,336 73,418 64,494 64,488
Other borrowings 16,247 22,161 22,634 22,982 25,353 Total
stockholders' equity 236,247 234,339 231,758 226,587 224,416
Statement of
income data for the three months ended:
Interest income $ 21,048 $ 19,212 $ 18,849 $ 18,535 $ 18,790
Interest expense 2,214 2,105
2,014 1,935 1,864 Net interest
income 18,834 17,107 16,835 16,600 16,926 Provision for loan losses
1,349 851 643 533
489 Net interest income after provision for
loan losses 17,485 16,256 16,192 16,067 16,437 Noninterest income
4,176 4,394 4,333 4,311 3,673 Noninterest expense 14,444
13,625 13,400 14,989
15,331 Income before taxes 7,217 7,025 7,125
5,389 4,779 Income tax provision 2,300 2,192
2,384 847 1,436
Net income $ 4,917 $ 4,833 $ 4,741 $ 4,542
$ 3,343
BEAR STATE FINANCIAL,
INC. SELECTED CONSOLIDATED FINANCIAL DATA – UNAUDITED
March
December September June March
2017 2016 2016 2016 2016
Common stock
data:
Net income per share, diluted $ 0.13 $ 0.13 $ 0.13 $ 0.12 $ 0.09
Core earnings per share, diluted $ 0.15 $ 0.13 $ 0.11 $ 0.11 $ 0.10
Book value per share $ 6.31 $ 6.21 $ 6.18 $ 6.08 $ 5.96 Tangible
book value per share $ 4.98 $ 4.86 $ 4.83 $ 4.72 $ 4.59 Diluted
weighted average shares outstanding 37,880,022 37,833,124
37,807,419 37,772,959 37,915,503 End of period shares outstanding
37,689,939 37,618,597 37,600,986 37,589,543 37,560,031
Profitability and
performance ratios:
Return on average assets 0.95 % 0.95 % 0.95 % 0.94 % 0.71 % Core
return on average assets 1.14 % 0.95 % 0.85 % 0.84 % 0.77 % Return
on average equity 8.44 % 8.18 % 8.12 % 8.04 % 6.04 % Core return on
average equity 10.06 % 8.23 % 7.28 % 7.23 % 6.61 % Core return on
average tangible equity 12.80 % 10.50 % 9.34 % 9.34 % 8.58 % Net
interest margin 4.05 % 3.75 % 3.78 % 3.86 % 4.03 % Noninterest
income to total revenue 18.15 % 20.44 % 20.47 % 20.62 % 17.83 %
Noninterest income to average assets 0.81 % 0.86 % 0.87 % 0.89 %
0.78 % Noninterest expense to average assets 2.80 % 2.68 % 2.68 %
3.10 % 3.24 % Efficiency ratio 62.77 % 63.37 % 63.30 % 71.68 %
74.43 % Core efficiency ratio(1) 56.00 % 63.18 % 66.99 % 68.29 %
71.96 % Average loans to average deposits 98.79 % 93.34 % 93.07 %
92.70 % 91.80 % Securities to total assets 11.52 % 10.49 % 9.84 %
9.67 % 9.63 %
Asset quality
ratios:
Allowance for loan losses to total loans 1.03 % 1.00 % 1.00 % 0.99
% 1.02 % Allowance for loan losses to non-performing loans 94.20 %
89.69 % 86.41 % 76.42 % 72.84 % Nonperforming loans to total loans
1.09 % 1.12 % 1.15 % 1.30 % 1.40 % Nonperforming assets to total
assets 0.87 % 0.94 % 0.95 % 1.08 % 1.23 % Annualized net charge
offs to average total loans (2) 0.03 % 0.10 % 0.07 % 0.17 % 0.05 %
Regulatory
capital ratios:
Tier 1 leverage ratio 9.27 % 9.47 % 9.37 % 9.30 % 9.16 % Common
equity tier 1 capital ratio 10.58 % 11.04 % 11.00 % 10.78 % 10.65 %
Tier 1 capital to risk weighted assets 10.58 % 11.04 % 11.00 %
10.78 % 10.65 % Total capital to risk weighted assets 11.51 % 11.96
% 11.92 % 11.69 % 11.58 %
(1) Core Efficiency ratio is a non-GAAP
ratio that is calculated by dividing core noninterest expense by
total core revenue (the sum of net interest income and core
noninterest income). Other companies may define and calculate this
data differently.
(2) The quarter ending June 30, 2016
includes a charge-off on a purchased credit impaired loan amounting
to 0.13% of average total loans.
BEAR STATE FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In
thousands, except share data) (Unaudited)
March
31, December 31, 2017 2016 ASSETS
Cash and cash equivalents $ 87,815 $ 78,789 Interest-bearing time
deposits in banks 4,324 4,571
Investment Securities:
Available for sale, at fair value 208,035 188,476 Held to maturity,
at amortized cost (fair value of $40,681 and $25,090, respectively)
42,458 26,977 Other investment securities, at cost 18,488 13,759
Loans receivable, net of allowance of $16,821 and $15,584,
respectively 1,620,984 1,540,805 Loans held for sale 4,735 8,954
Accrued interest receivable 7,248 7,006 Real estate owned, net
1,182 1,945 Office properties and equipment, net 52,539 54,049
Office properties and equipment held for sale 5,597 5,337 Cash
surrender value of life insurance 57,676 57,267 Goodwill 40,196
40,196 Core deposit intangibles, net 10,098 10,353 Deferred tax
asset, net 9,179 11,619 Prepaid expenses and other assets
3,487 3,072 TOTAL $ 2,174,041 $
2,053,175
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES: Noninterest bearing deposits $ 221,891 $
223,038 Interest bearing deposits 1,447,175
1,421,042 Total deposits 1,669,066 1,644,080 Securities sold
under agreement to repurchase 17,831 19,114 Other borrowings
238,578 152,004 Other liabilities 10,654 4,550
Total liabilities 1,936,129
1,819,748 STOCKHOLDERS’ EQUITY: Preferred stock,
$0.01 par value—5,000,000 shares authorized; none issued at March
31, 2017 or December 31, 2016 -- -- Common stock, $0.01 par
value—100,000,000 shares authorized; 37,689,939 and 37,618,597
shares issued and outstanding at March 31, 2017 and December 31,
2016, respectively 377 376 Additional paid-in capital 209,623
209,274 Accumulated other comprehensive loss (1,088 ) (1,436 )
Retained earnings 29,000 25,213
Total stockholders’ equity 237,912 233,427
TOTAL $ 2,174,041 $ 2,053,175
BEAR STATE FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in
thousands, except earnings per share) (Unaudited)
Three Months Ended March 31,
March 31, 2017 2016 INTEREST INCOME:
Loans receivable $ 19,479 $ 17,685 Investment securities: Taxable
611 537 Nontaxable 883 485 Other 75 83
Total interest income 21,048 18,790
INTEREST EXPENSE: Deposits 1,680 1,515 Other borrowings
534 349 Total interest expense
2,214 1,864 NET INTEREST INCOME
18,834 16,926 PROVISION FOR LOAN LOSSES 1,349
489 NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 17,485 16,437
NONINTEREST INCOME: Net gain (loss) on sales of investment
securities 11 (2 ) Deposit fee income 2,477 2,150 Earnings on life
insurance policies 409 412 Gain on sales of loans 995 794 Other
284 319 Total noninterest income
4,176 3,673 NONINTEREST
EXPENSES: Salaries and employee benefits 8,083 8,250 Net occupancy
expense 1,892 1,928 Real estate owned, net (94 ) 28 FDIC insurance
251 308 Amortization of intangible assets 255 255 Data processing
1,368 1,433 Professional fees 606 609 Advertising and public
relations 297 496 Postage and supplies 205 290 Other 1,581
1,734 Total noninterest expenses
14,444 15,331 INCOME BEFORE INCOME
TAXES 7,217 4,779
INCOME TAX PROVISION
2,300 1,436 NET INCOME $ 4,917
$ 3,343 Basic earnings per common share $ 0.13
$ 0.09 Diluted earnings per common share $
0.13 $ 0.09
BEAR STATE FINANCIAL, INC.
AVERAGE CONSOLIDATED BALANCE SHEETS and
NET INTEREST ANALYSIS - UNAUDITED
(Dollars in thousands)
Three Months Ended March 31, 2017
2016
Average Average Average Yield/
Average
Yield/ Balance Interest Cost
Balance
Interest
Cost (Dollars in Thousands) Interest-earning assets:
Loans receivable(1) $ 1,607,892
$
19,479
4.91 %
$
1,461,091
$ 17,685 4.91 % Investment securities(2) 248,355 1,494 2.44
206,258
1,022 2.01 Other interest-earning assets 30,566 75
1.00 35,568 83 0.95 Total interest-earning
assets 1,886,813 21,048 4.52 1,702,917 18,790 4.47
Noninterest-earning assets 205,209 217,916 Total
assets $ 2,092,022
$
1,920,833
Interest-bearing liabilities: Deposits $ 1,414,137 1,680 0.48
$
1,369,759
1,515 0.45 Other borrowings 222,761 534 0.97
102,004 349 1.39 Total interest-bearing liabilities
1,636,898 2,214 0.55 1,471,763 1,864 0.51 Noninterest-bearing
deposits 213,467 221,909
Noninterest-bearing liabilities
5,410 2,745 Total liabilities 1,855,775 1,696,417
Stockholders' equity 236,247 224,416
Total liabilities and stockholders'
equity
$ 2,092,022
$
1,920,833
Net interest income
$
18,834
$ 16,926 Net earning assets $ 249,915
$
231,154
Interest rate spread 3.97 % 3.96 % Net interest margin 4.05 % 4.03
%
Ratio of interest-earning assets to
Interest-bearing liabilities
115.27 % 115.71 % (1) Includes nonaccrual loans. (2)
Includes FHLB and FRB stock.
BEAR STATE FINANCIAL, INC.
ASSET QUALITY ANALYSIS -
UNAUDITED
(Dollars in thousands)
March 31, 2017 December 31, 2016 %
Total % Total Increase Net (2)
Assets Net (2) Assets (Decrease)
Nonaccrual Loans: One- to four-family residential $ 6,759 0.31 % $
6,709 0.33 % $ 50 Multifamily 119 0.01 % -- -- 119 Nonfarm
nonresidential 5,208 0.23 % 5,177 0.25 % 31 Farmland 1,280 0.06 %
783 0.04 % 497 Construction and land development 439 0.02 % 463
0.02 % (24 ) Commercial 3,841 0.18 % 4,071 0.20 % (230 ) Consumer
211 0.01 % 173 0.01 % 38 Total
nonaccrual loans 17,857 0.82 % 17,376 0.85 % 481 Accruing
loans 90 days or more past due -- -- -- -- -- Real estate
owned 1,182 0.05 % 1,945 0.09 % (763 )
Total nonperforming assets 19,039 0.87 % 19,321 0.94 % (282 )
Performing restructured loans 4,800 0.22 % 4,804 0.23
% (4 ) Total nonperforming assets and performing
restructured loans (1) $ 23,839 1.09 % $ 24,125 1.17 % $ (286 )
(1) The table does not include substandard
loans which were judged not to be impaired totaling $24.7 million
at March 31, 2017 and $30.7 million at December 31, 2016 or
acquired ASC 310-30 purchased credit impaired loans which are
considered performing at March 31, 2017.
(2) Loan balances are presented net of
undisbursed loan funds, partial charge-offs and interest payments
recorded as reductions in principal balances for financial
reporting purposes.
BEAR STATE FINANCIAL, INC. CALCULATION OF
RETURN ON AVERAGE TANGIBLE COMMON STOCKHOLDERS' EQUITY –
UNAUDITED (Dollars in thousands)
For the Quarter
Ending 3/31/2017 12/31/2016
9/30/2016 6/30/2016 3/31/2016
Net income available to common stockholders $ 4,917 $ 4,833
$ 4,741 $ 4,542 $ 3,343 Average common
stockholders' equity 236,247 234,339 231,758 226,587 224,416 Less
average intangible assets: Goodwill (40,196 ) (40,196 ) (40,196 )
(40,196 ) (40,196 ) Core deposit intangible, net of accumulated
amortization (10,265 ) (10,519 ) (10,775 )
(11,030 ) (11,284 ) Average tangible common
stockholders' equity $ 185,786 $ 183,624 $ 180,787
$ 175,361 $ 172,936
Annualized return on average tangible
common stockholders' equity
10.7 % 10.4 % 10.4 % 10.4 % 7.8
%
BEAR STATE FINANCIAL, INC.
CALCULATION OF TANGIBLE BOOK VALUE PER COMMON SHARE -
UNAUDITED (In thousands, except per share data)
For the
Quarter Ending 3/31/2017 12/31/2016
9/30/2016 6/30/2016 3/31/2016 Total common
stockholder's equity $ 237,912 $ 233,427 $ 232,403 $ 228,534 $
223,798 Less intangible assets: Goodwill (40,196 ) (40,196 )
(40,196 ) (40,196 ) (40,196 ) Core deposit intangible, net of
accumulated amortization (10,098 ) (10,353 )
(10,608 ) (10,863 ) (11,119 ) Total intangible assets
(50,294 ) (50,549 ) (50,804 ) (51,059 )
(51,315 ) Total tangible common stockholder's equity $
187,618 $ 182,878 $ 181,599 $ 177,475 $
172,483 Common Shares Outstanding 37,690
37,619 37,601 37,590
37,560 Tangible book value per common
share $ 4.98 $ 4.86 $ 4.83 $ 4.72 $
4.59
BEAR STATE FINANCIAL, INC.
RECONCILIATION OF NON-GAAP SELECTED CONSOLIDATED FINANCIAL DATA
- UNAUDITED (In thousands, except share data)
For the Quarter Ending March
December September June March
2017 2016 2016 2016 2016 Net
income $ 4,917 $ 4,833 $ 4,741 $ 4,542 $ 3,343 Adj: Loss (gain) on
sale of securities, net (11 ) -- (21 ) -- 2 Adj: Merger,
acquisition and integration expenses -- -- -- 137 445 Adj: Branch
restructure expense (1) 1,565 41 (323 ) 571 63 Adj: Net
provision/loss/(gain) on real estate owned -- -- (444 ) -- -- Adj:
Deferred tax asset valuation allowance reversal -- -- -- (897 ) --
Tax effect of adjustments (2) (608 )
(16 ) 302 (271 )
(195 ) Total core earnings (A) $ 5,863
$ 4,858 $ 4,255 $ 4,082 $
3,658 Total revenue $ 23,010 $ 21,501 $ 21,168 $
20,911 $ 20,599 Adj: Loss (gain) on sale of securities, net
(11 ) -- (21 )
-- 2 Total core revenue
$ 22,999 $ 21,501 $
21,147 $ 20,911 $ 20,601
Total non-interest expense $ 14,444 $ 13,625 $ 13,400 $ 14,989 $
15,331 Adj: Merger, acquisition and integration expenses -- -- --
(137 ) (445 ) Adj: Branch restructure expense (1) (1,565 ) (41 )
323 (571 ) (63 ) Adj: Net (provision/loss)/gain on real estate
owned -- --
444 -- --
Total core noninterest expense $ 12,879
$ 13,584 $ 14,167 $ 14,281
$ 14,823 Total average assets (B) $ 2,092,022
$ 2,019,792 $ 1,981,582 $ 1,937,722 $ 1,920,833 Total average
stockholders' equity (C) 236,247 234,339 231,758 226,587 224,416
Total average tangible stockholders' equity (D) 185,786 183,624
180,787 175,361 172,936 Total tangible stockholders' equity, period
end (E) 187,618 182,878 181,599 177,475 172,483 Total common
shares outstanding, period-end (F) 37,689,939 37,618,597 37,600,986
37,589,543 37,560,031 Average diluted shares outstanding (G)
37,880,022 37,833,124 37,807,419 37,772,959 37,915,503 Core
earnings per share, diluted (A/G) $ 0.15 $ 0.13 $ 0.11 $ 0.11 $
0.10 Tangible book value per share, period-end (E/F) $ 4.98 $ 4.86
$ 4.83 $ 4.72 $ 4.59 Core return on average assets (A/B)
1.14 % 0.95 % 0.85 % 0.84 % 0.77 % Core return on average equity
(A/C) 10.06 % 8.23 % 7.28 % 7.23 % 6.61 % Core return on average
tangible equity (A/D) 12.80 % 10.50 % 9.34 % 9.34 % 8.58 % Core
efficiency ratio(3) 56.00 %
63.18 % 66.99 % 68.29 % 71.96 %
(1) This adjustment primarily consists of
costs associated with properties disposed or held for sale as a
result of branch restructuring, including net (gains) losses on
sales, impairment charges, and other expenses such as accelerated
depreciation. For the quarter ended March 31,2017, this adjustment
also included severance expense totaling $1.1 million resulting
from branch and other organizational restructure, primarily due to
severance of $0.8 million accrued upon the departure of the former
CEO in January 2017.
(2) The tax effect is calculated at the
Company’s blended statutory rate of 39.14% for adjustments that
impact taxable income for periods in 2017 and 38.29% for periods
ending in 2016.
(3) Core Efficiency ratio is a non-GAAP
ratio that is calculated by dividing core noninterest expense by
total core revenue (the sum of net interest income and core
noninterest income). Other companies may define and calculate this
data differently.
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version on businesswire.com: http://www.businesswire.com/news/home/20170420005519/en/
Bear State Financial, Inc.Matt Machen, CEO, 501-975-6033orSherri
Billings, CFO, 501-975-6033
Bear State Financial, Inc. (NASDAQ:BSF)
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