Reported Net Income of $13.0 million, or
Diluted EPS of $0.78
Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”)
(Nasdaq: RBNC), parent company of Reliant Bank (the “Bank”),
reported net income attributable to common shareholders of $13.0
million, or $0.78 per diluted common share, for the second quarter
of 2021 compared to net income attributable to common shareholders
of $12.1 million, or $0.73 per diluted common share, for the first
quarter of 2021, and $7.9 million, or $0.48 per diluted common
share, for the second quarter of 2020.
DeVan Ard, Jr., Reliant Bancorp's Chairman and CEO stated, “I am
very pleased to continue 2021 with solid second quarter results as
evidenced by our record earnings, sound asset quality, and
increasing loan production. Loan growth has continued to accelerate
with a 1.9% increase from the prior quarter. When PPP loans are
excluded, loan growth increases to 3.2%, or 12.8% when
annualized.”
Ard continued, “Our team delivered another outstanding quarter
of deposit growth. Balances in non-time deposits - checking,
savings, and money market deposits - grew 6.3%, or 25.1%
annualized, during the second quarter, which can be largely
attributed to the effort by our team to build lasting relationships
with our customers. We also continued to build shareholder value as
our book value and tangible book value per share increased 4.3% and
5.5%, respectively, from the prior quarter, or 17.1% and 22.1%,
respectively, when annualized. Additionally, shareholders’ equity
to total assets and tangible common equity to tangible assets have
increased to 11.18% and 9.28%, respectively, which positions us for
further growth opportunities and allows us to continue to deliver
exceptional shareholder returns.”
Second Quarter Highlights Dollar
Amounts in Thousands, Except Per Share Amounts
2021
2020
Second Quarter
First Quarter
Second Quarter
Results of
Operations Highlights
Net income attributable to common
shareholders
$
13,045
$
12,149
$
7,868
Net income per diluted common share
$
0.78
$
0.73
$
0.48
Net interest margin (NIM) (1)
4.14
%
4.51
%
4.58
%
Adjusted NIM (2)
4.28
%
4.24
%
3.81
%
Adjusted pre-tax pre-provision income
(2)
$
16,387
$
15,699
$
12,114
Efficiency ratio (tax equivalent
basis)
54.1
%
56.4
%
62.7
%
Bank segment adjusted efficiency ratio
(2)
49.1
%
50.8
%
50.7
%
Balance Sheet
Highlights
Loans
$
2,321,070
$
2,277,714
$
2,317,324
Allowance for loan losses
(20,894
)
(20,785
)
(18,237
)
Total assets
3,098,464
3,057,066
2,990,126
Total deposits
2,629,840
2,612,910
2,530,014
Book value per share
$
20.77
$
19.92
$
17.77
Tangible book value per share (2)
$
16.88
$
16.00
$
13.96
Return on
average: (3)
Assets ("ROAA")
1.69
%
1.64
%
1.07
%
Equity ("ROAE")
15.41
%
15.07
%
10.95
%
Tangible common equity ("ROATCE") (2)
19.07
%
18.84
%
14.04
%
(1)
Net interest margin is the result of
annualized net interest income calculated on a tax-equivalent basis
divided by average interest-earning assets for the period.
(2)
Certain measures are considered non-GAAP
financial measures. See “Reconciliation of Non-GAAP Financial
Measures.”
(3)
Data has been annualized.
Profitability Remains Strong Through
Asset Mix Optimization
Net interest margin decreased to 4.14% at June 30, 2021, a
decrease of 37 basis points from the previous quarter and a
decrease of 44 basis points from the second quarter of 2020. The
linked quarter decrease was primarily due to a 30 basis point
increase in our cost of funds due to a $2,859 swap termination fee
incurred during the quarter. The adjusted net interest margin,
which excludes this fee impact as well as the benefits from
purchase accounting accretion, showed continued improvement as it
increased 4 basis points from the linked quarter to 4.28%. Net
income and earnings per share during the quarter were not affected
by this termination fee as securities were sold for a gain of
$2,966 to offset the transaction.
Loan yields remain strong at 5.58% with a decrease of 5 basis
points from the linked quarter. The 40 basis point decrease from
the same period in the prior year can largely be attributed to the
decrease in purchase accounting accretion. As of June 30, 2021,
$13.0 million of purchase accounting accretion and $184 thousand in
PPP deferred fees remain to be realized.
While the cost of funds increased to 0.97% during the quarter
due to the impact of the swap termination, the cost of
interest-bearing retail deposits decreased 40 basis points from the
linked quarter and 89 basis points from the same quarter in the
prior year driven by a continued focus on improving the funding mix
and attracting and retaining core deposits. Deposits increased
$16.9 million from the linked quarter and $99.8 million
year-over-year with non-time deposits making up $120.7 million and
$467.3 million of the increases, respectively. Noninterest-bearing
deposits increased $23.8 million from the linked quarter while time
deposits decreased $103.7 million.
Ard stated, “Our team continues to attract and retain low cost
deposits in a competitive environment, fulfilling one of our
strategic goals and helping us to better serve the community's
credit needs.”
Continued Loan Growth and Asset Quality
Stability
Loans have increased $43.4 million from the linked quarter to
$2.3 billion. Loan originations during the quarter totaled $280.2
million at a weighted-average coupon rate of 4.16% with a continued
focus on credit quality through sound underwriting. These
originations were offset with principal payments, including PPP
forgiveness payments of $27.9 million. When PPP loans are excluded,
loans increased $71.3 million, or 3.2%, from the linked quarter and
$73.0 million, or 3.3%, year-over-year.
Our longstanding focus on credit quality continues to be a
source of strength with net recoveries in the first quarter
continuing into the second quarter. Nonperforming loans held for
investment accounted for 0.23% of total loans held for investment
and nonperforming assets accounted for only 0.31% of total assets
at June 30, 2021, despite the addition of a retired bank facility
to other real estate owned during the quarter. Criticized assets to
total loans remains low at 0.87%. The allowance for loan loss was
0.90% of loans (1.46% including unaccreted net purchased loan
discounts) at June 30, 2021. There was no provision recognized
during the quarter as net charge-offs were in a recovery position
for the quarter and year-to-date.
Conclusion
Ard concluded, “I am proud of our team’s ability to serve the
community and our shareholders as well as our ability to create
meaningful careers and a positive workplace for our employees as
evidenced through the Tennessean’s recognition as a 2021 Top
Workplace. We continue to see increased demand in the loan pipeline
as we move into the third quarter, and we are optimistic about our
market and financial positions as we continue to build a bright
future for Reliant Bank.”
About Reliant Bancorp, Inc. and Reliant
Bank
Reliant Bancorp, Inc. is a Brentwood, Tennessee-based financial
holding company which, through its wholly owned subsidiary Reliant
Bank, operates banking centers in Tennessee. Reliant Bank is a
full-service commercial bank that offers a variety of deposit,
lending, and mortgage products and services to business and
consumer customers. As of June 30, 2021, Reliant Bancorp had
approximately $3.1 billion in total consolidated assets,
approximately $2.3 billion in loans held for investment and
approximately $2.6 billion in deposits. For additional information,
locations and hours of operation, please visit
www.reliantbank.com.
Financial Measures
This release contains certain financial measures that are not
measures recognized under generally accepted accounting principles
(“GAAP”) and, therefore, are considered non-GAAP financial
measures. Members of Company management use these non-GAAP
financial measures in their analysis of the Company’s performance,
financial condition, and efficiency of operations. Management of
the Company believes that these non-GAAP financial measures provide
a greater understanding of ongoing operations, enhance
comparability of results with prior periods, and demonstrate the
effects of significant gains and charges in the periods presented.
Management of the Company also believes that investors find these
non-GAAP financial measures useful as they assist investors in
understanding underlying operating performance and identifying and
analyzing ongoing operating trends. However, the non-GAAP financial
measures discussed herein should not be considered in isolation or
as a substitute for the most directly comparable or other financial
measures calculated in accordance with GAAP. Moreover, the manner
in which the non-GAAP financial measures discussed herein are
calculated may differ from the manner in which measures with
similar names are calculated by other companies. You should
understand how other companies calculate their financial measures
similar to, or with names similar to, the non-GAAP financial
measures we have discussed herein when comparing such non-GAAP
financial measures.
The non-GAAP measures in this release include “adjusted net
interest margin (NIM),” “adjusted net income,” “adjusted diluted
earnings per share (EPS),” “adjusted annualized return on average
assets (ROAA),” “adjusted annualized return on average equity
(ROAE),” “adjusted annualized return on average tangible common
equity (ROATCE),” “adjusted pre-tax pre-provision income,”
“tangible common equity to tangible assets (TCE/TA),” “tangible
book value per share,” “allowance for loan losses plus unaccreted
purchased loan discounts to total loans,” “bank segment adjusted
net income,” “bank segment adjusted noninterest expense,” “bank
segment adjusted efficiency ratio,” “adjusted cost of funds,”
“adjusted cost of interest-bearing liabilities,” and “adjusted cost
of deposits.”
Forward-Looking
Statements
All statements, other than statements of historical fact,
included in this release and any oral statements made regarding the
subject of this release that address activities, events or
developments that the Company expects, believes or anticipates will
or may occur in the future are “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, and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including
statements relating to increased demand in the loan pipeline and
management’s optimism about the Company’s market and financial
positions. The words “believe,” “anticipate,” “expect,” “may,”
“will,” “assume,” “should,” “predict,” “could,” “would,” “intend,”
“targets,” “estimates,” “projects,” “plans,” and “potential,” and
other similar words and expressions of the future, are intended to
identify such forward-looking statements, but other statements not
based on historical information may also be considered
forward-looking, including statements about the Company’s future
financial and operating results and the Company’s plans,
objectives, and intentions. All forward-looking statements are
subject to risks, uncertainties, and other factors that may cause
the actual results, performance, or achievements of the Company to
differ materially from any results, performance, or achievements
expressed or implied by such forward-looking statements. Such
risks, uncertainties, and other factors include, among others: (1)
the effects of the coronavirus (COVID-19) pandemic, including (i)
the magnitude and duration of the pandemic and its impact on
general economic and financial market conditions and on our
business, results of operations, and financial condition and that
of our customers, (ii) actions taken by governments, businesses and
individuals in response to the coronavirus (COVID-19) pandemic,
(iii) the pace of recovery when the coronavirus (COVID-19) pandemic
subsides, and (iv) the speed with which coronavirus (COVID-19)
vaccines can be widely distributed, those vaccines’ efficacy
against the virus and public acceptance of the vaccines, (2) the
possibility that our asset quality could decline or that we
experience greater loan losses than anticipated, (3) increased
levels of other real estate, primarily as a result of foreclosures,
(4) the impact of liquidity needs on our results of operations and
financial condition, (5) competition from financial institutions
and other financial service providers, (6) the effect of interest
rate increases on the cost of deposits, (7) unanticipated weakness
in loan demand or loan pricing, (8) greater than anticipated
adverse conditions in the national economy or local economies in
which we operate, including in Middle Tennessee, (9) lack of
strategic growth opportunities or our failure to execute on
available opportunities, (10) deterioration in the financial
condition of borrowers resulting in significant increases in loan
losses and provisions for those losses, (11) economic crises and
associated credit issues in industries most impacted by the
coronavirus (COVID-19) pandemic, including the hotel and retail
sectors, (12) the ability to grow and retain low-cost core deposits
and retain large, uninsured deposits, (13) our ability to
effectively manage problem credits, (14) our ability to
successfully implement efficiency initiatives on time and with the
results projected, (15) our ability to successfully develop and
market new products and technology, (16) the impact of negative
developments in the financial industry and United States and global
capital and credit markets, (17) our ability to retain the services
of key personnel, (18) our ability to adapt to technological
changes, (19) risks associated with litigation, including
reputational and financial risks and the applicability of insurance
coverage, (20) the vulnerability of the Bank’s computer and
information technology systems and networks, and the systems and
networks of third parties with whom the Company or the Bank
contract, to unauthorized access, computer viruses, phishing
schemes, spam attacks, human error, natural disasters, power loss,
and other security breaches and interruptions, (21) changes in
state and federal laws, rules, regulations, or policies applicable
to banks or bank or financial holding companies, including
regulatory or legislative developments, (22) adverse impacts
(including costs, fines, reputational harm, or other negative
effects) from current or future litigation, regulatory
examinations, or other legal and/or regulatory actions, (23) the
risk of successful integration of the businesses the Company has
recently acquired, (24) the ability to meet expectations regarding
the timing and completion and accounting and tax treatment of the
pending transaction with United Community Banks, Inc. (the
“Transaction”), (25) the effect of the announcement and pendency of
the Transaction on customer, supplier, or employee relationships
and operating results (including without limitation difficulties in
maintaining relationships with employees and customers), as well as
on the market price of the Company's common stock, (26) the
occurrence of any event, change, or other circumstances that could
give rise to the termination of the definitive merger agreement for
the Transaction, (27) the amount of costs, fees, expenses and
charges related to the Transaction, including those arising as a
result of unexpected factors or events, (28) the ability to obtain
the shareholder and governmental approvals required for the
Transaction, (29) reputational risk associated with and the
reaction of the parties' customers, suppliers, employees, or other
business partners to the Transaction, (30) the failure of any of
the conditions to the closing of the Transaction to be satisfied,
or any unexpected delay in closing the Transaction, (31) the risk
associated with Company management's attention being diverted away
from the day-to-day business and operations of the Company to the
completion of the Transaction, and (32) general competitive,
economic, political, and market conditions, including economic
conditions in the local markets where we operate. Additional
factors which could affect the forward-looking statements can be
found in the Company’s annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K filed with
the Securities and Exchange Commission (the “SEC”) and available on
the SEC’s website at http://www.sec.gov. The Company believes the
forward-looking statements contained herein are reasonable;
however, many of such risks, uncertainties, and other factors are
beyond the Company’s ability to control or predict and undue
reliance should not be placed on any forward-looking statements,
which are based on current expectations and speak only as of the
date that they are made. Therefore, the Company can give no
assurance that its future results will be as estimated. The Company
does not intend to, and disclaims any obligation to, update or
revise any forward-looking statement.
RELIANT BANCORP, INC.
CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in thousands,
except per share amounts)
June 30, 2021
March 31, 2021
June 30, 2020
ASSETS
(Unaudited)
(Unaudited)
(Unaudited)
Cash and due from banks
$
11,763
$
13,105
$
12,805
Interest-bearing deposits in financial
institutions
43,676
104,620
81,033
Federal funds sold
656
186
638
Total cash and cash equivalents
56,095
117,911
94,476
Securities available for sale
266,695
267,191
249,014
Loans
2,321,070
2,277,714
2,317,324
Less: allowance for loan losses
(20,894)
(20,785)
(18,237)
Loans, net
2,300,176
2,256,929
2,299,087
Mortgage loans held for sale, net
229,418
166,599
101,579
Accrued interest receivable
14,492
14,568
13,579
Premises and equipment, net
29,183
30,879
33,524
Operating leases right of use assets
12,744
13,372
15,452
Restricted equity securities, at cost
15,770
16,146
17,509
Other real estate, net
2,233
1,198
2,514
Cash surrender value of life insurance
contracts
78,979
78,423
67,723
Deferred tax assets, net
5,978
7,453
9,787
Goodwill
54,396
54,396
51,058
Core deposit intangibles
10,434
10,891
12,293
Other assets
21,871
21,110
22,531
TOTAL ASSETS
$
3,098,464
$
3,057,066
$
2,990,126
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand
$
602,555
$
578,764
$
534,353
Interest-bearing demand
441,161
397,047
273,993
Savings and money market deposit
accounts
1,003,402
950,630
771,505
Time
582,722
686,469
950,163
Total deposits
2,629,840
2,612,910
2,530,014
Accrued interest payable
1,967
3,087
3,100
Subordinated debentures
70,770
70,719
70,413
Federal Home Loan Bank advances
16,000
—
49,121
Operating leases liabilities
13,932
14,552
16,591
Other liabilities
19,666
24,099
25,344
TOTAL LIABILITIES
2,752,175
2,725,367
2,694,583
Preferred stock, $1 par value per share;
10,000,000 shares authorized; no shares issued to date
—
—
—
Common stock, $1 par value per share;
30,000,000 shares authorized; 16,672,511, 16,654,415, and
16,631,604 shares issued and outstanding at June 30, 2021, March
31, 2021, and June 30, 2020, respectively
16,673
16,654
16,632
Additional paid-in capital
234,390
233,667
232,436
Retained earnings
86,917
75,891
45,351
Accumulated other comprehensive income
8,309
5,487
1,124
TOTAL SHAREHOLDERS’ EQUITY
346,289
331,699
295,543
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
3,098,464
$
3,057,066
$
2,990,126
This information is preliminary
and based on company data available at the time of
presentation.
RELIANT BANCORP, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS - UNAUDITED
(Dollar amounts in thousands,
except per share amounts)
Three Months Ended
June 30, 2021
March 31,
2021
June 30,
2020
INTEREST INCOME
Interest and fees on loans
$
31,183
$
30,989
$
33,447
Interest and fees on loans held for
sale
1,807
1,331
815
Interest on investment securities,
taxable
663
610
128
Interest on investment securities,
nontaxable
1,216
1,225
1,317
Restricted equity securities and other
226
227
208
TOTAL INTEREST INCOME
35,095
34,382
35,915
INTEREST EXPENSE
Deposits
Demand
216
272
218
Savings and money market deposit
accounts
647
839
1,476
Time
4,678
2,288
3,135
Federal Home Loan Bank advances and other
borrowings
13
4
148
Subordinated debentures
980
953
982
TOTAL INTEREST EXPENSE
6,534
4,356
5,959
NET INTEREST INCOME
28,561
30,026
29,956
PROVISION FOR LOAN LOSSES
—
—
3,000
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
28,561
30,026
26,956
NONINTEREST INCOME
Service charges on deposit accounts
1,656
1,561
1,381
Gains on mortgage loans sold, net
2,978
4,928
2,248
Gain (loss) on securities transactions,
net
2,966
129
327
Other noninterest income
710
719
466
TOTAL NONINTEREST INCOME
8,310
7,337
4,422
NONINTEREST EXPENSE
Salaries and employee benefits
12,793
13,352
12,464
Occupancy
1,999
2,008
2,026
Data processing and software
2,262
2,229
2,026
Professional fees
358
1,243
680
Regulatory fees
343
361
537
Merger expenses
—
—
2,632
Other operating expense
2,729
2,471
1,899
TOTAL NONINTEREST EXPENSE
20,484
21,664
22,264
INCOME BEFORE PROVISION FOR INCOME
TAXES
16,387
15,699
9,114
INCOME TAX EXPENSE
3,202
2,980
1,634
CONSOLIDATED NET INCOME
13,185
12,719
7,480
NONCONTROLLING INTEREST IN NET (INCOME)
LOSS OF SUBSIDIARY
(140
)
(570
)
388
NET INCOME ATTRIBUTABLE TO COMMON
SHAREHOLDERS
$
13,045
$
12,149
$
7,868
Basic net income attributable to common
shareholders, per share
$
0.79
$
0.73
$
0.48
Diluted net income attributable to common
shareholders, per share
$
0.78
$
0.73
$
0.48
This information is preliminary
and based on company data available at the time of
presentation.
RELIANT BANCORP, INC.
SEGMENT FINANCIAL INFORMATION
- UNAUDITED
(Dollar Amounts in Thousands)
Three Months Ended
June 30, 2021
Commercial Banking
Residential Mortgage
Banking
Elimination Entries
Consolidated
Net interest income
$
27,440
$
1,121
$
—
$
28,561
Provision for loan losses
—
—
—
—
Noninterest income
5,335
3,251
(276
)
8,310
Noninterest expense (excluding merger
expense)
16,570
3,914
—
20,484
Merger expense
—
—
—
—
Income tax expense
3,160
42
—
3,202
Net income
13,045
416
(276
)
13,185
Noncontrolling interest in net income of
subsidiary
—
(416
)
276
(140
)
Net income attributable to common
shareholders
$
13,045
$
—
$
—
$
13,045
Three Months Ended
March 31, 2021
Commercial Banking
Residential Mortgage
Banking
Elimination Entries
Consolidated
Net interest income
$
29,133
$
893
$
—
$
30,026
Provision for loan losses
—
—
—
—
Noninterest income
2,409
5,033
(105
)
7,337
Noninterest expense (excluding merger
expense)
16,460
5,204
—
21,664
Merger expense
—
—
—
—
Income tax expense
2,933
47
—
2,980
Net income
12,149
675
(105
)
12,719
Noncontrolling interest in net income of
subsidiary
—
(675
)
105
(570
)
Net income attributable to common
shareholders
$
12,149
$
—
$
—
$
12,149
Three Months Ended
June 30, 2020
Commercial Banking
Residential Mortgage
Banking
Elimination Entries
Consolidated
Net interest income
$
29,420
$
536
$
—
$
29,956
Provision for loan losses
3,000
—
—
3,000
Noninterest income
2,174
2,240
8
4,422
Noninterest expense (excluding merger
expense)
16,433
3,199
—
19,632
Merger expense
2,632
—
—
2,632
Income tax (benefit) expense
1,661
(27
)
—
1,634
Net (loss) income
7,868
(396
)
8
7,480
Noncontrolling interest in net loss of
subsidiary
—
396
(8
)
388
Net income attributable to common
shareholders
$
7,868
$
—
$
—
$
7,868
This information is preliminary
and based on company data available at the time of
presentation.
RELIANT BANCORP, INC.
SELECTED QUARTERLY FINANCIAL
DATA - UNAUDITED
(Dollar amounts in thousands, except per
share amounts)
Three months ended,
June 30, 2021
March 31, 2021
June 30, 2020
Per Common Share
Basic net income
$
0.79
$
0.73
$
0.48
Diluted net income
$
0.78
$
0.73
$
0.48
Adjusted diluted income(1)
$
0.78
$
0.73
$
0.60
Book value
$
20.77
$
19.92
$
17.77
Tangible book value(1)
$
16.88
$
16.00
$
13.96
Shares Outstanding
Basic weighted average common shares
16,616,888
16,615,169
16,496,817
Diluted weighted average common shares
16,784,744
16,740,303
16,529,080
Common shares outstanding at period
end
16,672,511
16,654,415
16,631,604
Selected Balance Sheet Data
Loans, net of unearned income
$
2,321,070
$
2,277,714
$
2,317,324
Total assets
3,098,464
3,057,066
2,990,126
Customer deposits
2,320,054
2,350,168
2,177,734
Wholesale and institutional deposits
309,786
262,742
352,280
Total deposits
2,629,840
2,612,910
2,530,014
Total liabilities
2,752,175
2,725,367
2,694,583
Total shareholders' equity
346,289
331,699
295,543
Selected Balance Sheet Data - Quarterly
Averages
Loans held for investment
$
2,288,841
$
2,280,379
$
2,302,639
Total assets
3,088,329
3,013,114
2,956,942
Interest-bearing liabilities
2,113,993
2,079,238
2,158,990
Total liabilities
2,748,825
2,686,085
2,667,981
Total shareholders' equity
339,504
327,029
288,961
Selected Performance Ratios
Return on average assets
(2)
1.69
%
1.64
%
1.07
%
Return on shareholders' equity
(2)
15.41
%
15.07
%
10.95
%
Return on average tangible common
equity(1) (2)
19.07
%
18.84
%
14.04
%
Average shareholders' equity to average
assets
10.99
%
10.85
%
9.77
%
Net interest margin (tax-equivalent basis)
(2)
4.14
%
4.51
%
4.58
%
Efficiency Ratio (tax-equivalent
basis)
54.1
%
56.4
%
62.7
%
Bank Segment efficiency ratio (1)
49.1
%
50.8
%
50.7
%
Loans held for investment to deposits
ratio
88.3
%
87.2
%
91.6
%
Interest Rates and Yields (2)
Yield on interest-earning assets
5.05
%
5.14
%
5.45
%
Yield on loans held for investment
5.58
%
5.63
%
5.98
%
Cost of interest-bearing liabilities
1.24
%
0.85
%
1.11
%
Adjust cost of interest-bearing
liabilities (1)
0.70
%
0.85
%
1.11
%
Cost of funds
0.97
%
0.67
%
0.91
%
Adjusted cost of funds (1)
0.54
%
0.67
%
0.91
%
Cost of total deposits
0.83
%
0.51
%
0.79
%
Adjusted cost of total deposits (1)
0.41
%
0.51
%
0.79
%
Preliminary Consolidated Capital Ratios
(3)
Tier 1 leverage
9.47
%
9.33
%
8.47
%
Common equity tier 1
10.18
%
10.41
%
9.25
%
Tier 1 risk-based capital
10.62
%
10.88
%
9.71
%
Total risk-based capital
13.62
%
14.09
%
12.80
%
Selected Asset Quality Measures
Allowance for loan losses to total
loans
0.90
%
0.91
%
0.79
%
Allowance for loan losses and purchase
loan discounts to total loans
1.46
%
1.56
%
1.73
%
Net (recoveries) charge offs
$
(109
)
$
(149
)
$
(116
)
Net (recoveries) charge offs to average
loans (2)
(0.02
)%
(0.03
)%
(0.02
)%
Total nonperforming loans held for
investment (HFI)
$
5,355
$
6,110
$
7,549
Total nonperforming assets (4)
$
9,726
$
9,661
$
11,571
Nonperforming loans HFI to total loans
HFI
0.23
%
0.27
%
0.33
%
Nonperforming assets to total assets
0.31
%
0.32
%
0.39
%
Nonperforming assets to total loans HFI
and NPAs
0.42
%
0.42
%
0.50
%
(1)
Certain measures are considered non-GAAP
financial measures. See “Reconciliation of Non-GAAP Financial
Measures”.
(2)
Data has been annualized.
(3)
Current quarter capital ratios are
estimated
(4)
Nonperforming assets consist of
nonperforming loans held for investment, nonperforming loans held
for sale, repossessed assets, and other real estate.
This information is preliminary
and based on company data available at the time of
presentation.
RELIANT BANCORP, INC.
YIELD TABLES -
UNAUDITED
FOR THE PERIODS
INDICATED
(Dollar Amounts in Thousands)
The following table sets forth the amount
of our average balances, interest income or interest expense for
each category of interest-earning assets and interest-bearing
liabilities and the average interest rate for interest-earning
assets and interest-bearing liabilities, net interest spread and
net interest margin for the periods indicated below:
Three Months Ended
June 30, 2021
Three Months Ended
March 31, 2021
Three Months Ended
June 30, 2020
Average Balances (1)
Rates / Yields (%)
Interest Income /
Expense
Average Balances (1)
Rates / Yields (%)
Interest Income /
Expense
Average Balances (1)
Rates / Yields (%)
Interest Income /
Expense
Interest earning assets
Loans (2) (3)
$
2,288,841
5.12
$
28,539
$
2,280,379
5.15
$
28,288
$
2,302,639
5.68
$
31,708
Loan fees
—
0.46
2,644
—
0.48
2,701
—
0.30
1,739
Loans with fees
2,288,841
5.58
31,183
2,280,379
5.63
30,989
2,302,639
5.98
33,447
Mortgage loans held for sale
232,850
3.11
1,807
169,747
3.18
1,331
85,313
3.84
815
Deposits with banks
58,619
0.36
52
61,939
0.34
52
66,052
0.30
50
Investment securities - taxable
73,368
3.62
663
65,499
3.78
610
66,234
0.78
128
Investment securities - tax-exempt (4)
197,309
3.19
1,216
198,034
3.24
1,225
193,216
3.51
1,317
Restricted equity securities and other
17,816
3.92
174
17,321
4.10
175
21,950
2.90
158
Total earning assets
2,868,803
5.05
35,095
2,792,919
5.14
34,382
2,735,404
5.45
35,915
Nonearning assets
219,526
220,195
221,538
Total assets
$
3,088,329
$
3,013,114
$
2,956,942
Interest bearing liabilities
Interest bearing demand
$
412,117
0.21
$
216
$
377,714
0.29
$
272
$
279,092
0.31
$
218
Savings and money market
972,082
0.27
647
901,444
0.38
839
731,278
0.81
1,476
Time deposits - retail
443,512
0.94
1,042
494,508
1.15
1,404
749,566
1.19
2,217
Time deposits - wholesale
192,954
7.56
3,636
227,513
1.58
884
201,307
1.83
918
Total interest-bearing deposits
2,020,665
1.10
5,541
2,001,179
0.69
3,399
1,961,243
0.99
4,829
Federal Home Loan Bank advances and other
borrowings
22,582
0.23
13
7,467
0.22
4
127,350
0.47
148
Subordinated debt
70,746
5.56
980
70,592
5.48
953
70,397
5.61
982
Total borrowed funds
93,328
4.27
993
78,059
4.97
957
197,747
2.30
1,130
Total interest-bearing
liabilities
2,113,993
1.24
6,534
2,079,238
0.85
4,356
2,158,990
1.11
5,959
Net interest spread (5)
3.81
28,561
4.29
30,026
4.34
29,956
Noninterest bearing deposits
597,188
(0.27
)
565,770
(0.18
)
468,575
(0.20
)
Other noninterest bearing liabilities
37,644
41,077
40,416
Shareholders' equity
339,504
327,029
288,961
Total liabilities and shareholders'
equity
$
3,088,329
$
3,013,114
$
2,956,942
Cost of funds
0.97
0.67
0.91
Net interest margin (6)
4.14
4.51
4.58
(1)
Calculated using daily averages.
(2)
Average loan balances include nonaccrual
loans.
(3)
Yields on loans reflects tax-exempt
interest and state tax credits received on low or zero percent
interest loans made to construct low income housing of $667, $661,
and $790, for the three months ended June 30, 2021, March 31, 2021,
and June 30, 2020, respectively.
(4)
Yields on tax-exempt securities are shown
on a tax-equivalent basis.
(5)
Net interest spread is calculated as the
yields realized on interest-bearing assets less the rates paid on
interest-bearing liabilities.
(6)
Net interest margin is the result of net interest income calculated
on a tax-equivalent basis divided by average interest earning
assets for the period.
This information is preliminary
and based on company data available at the time of
presentation.
RELIANT BANCORP, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES-UNAUDITED
(Dollar Amounts in Thousands,
Except Per Share Amounts)
Three Months Ended
June 30, 2021
March 31, 2021
June 30, 2020
Adjusted net interest margin
(1):
Net interest income
$
28,561
$
30,026
$
29,956
Add: tax equivalent interest income
1,021
1,019
1,161
Add: swap termination fees
2,859
—
—
Less: purchase accounting adjustments
(1,839
)
(1,844
)
(5,232
)
Adjusted net interest income
30,602
29,201
25,885
Average Earning Assets
$
2,868,803
$
2,792,919
$
2,735,404
Net interest margin-tax equivalent
4.14
%
4.51
%
4.58
%
Adjusted net interest margin
4.28
%
4.24
%
3.81
%
Adjusted net income (2):
Net income (loss) attributable to common
shareholders
$
13,045
$
12,149
$
7,868
Add: merger related expenses
—
—
2,632
Less: income tax impact of merger related
expenses
—
—
(565
)
Adjusted net income
$
13,045
$
12,149
$
9,935
Adjusted diluted earnings per
share:
Adjusted net income
$
13,045
$
12,149
$
9,935
Weighted average shares - diluted
16,784,744
16,740,303
16,529,080
Diluted earnings (loss) per share
$
0.78
$
0.73
$
0.48
Adjusted diluted earnings per share
$
0.78
$
0.73
$
0.60
Adjusted annualized return on average
assets:
Adjusted net income
$
13,045
$
12,149
$
9,935
Average assets
3,088,329
3,013,114
2,956,942
Annualized return on average assets
1.69
%
1.64
%
1.07
%
Adjusted annualized return on average
assets
1.69
%
1.64
%
1.35
%
Adjusted annualized return on average
equity:
Adjusted net income
$
13,045
$
12,149
$
9,935
Average total shareholders' equity
339,504
327,029
288,961
Annualized return on average equity
15.41
%
15.07
%
10.95
%
Adjusted annualized return on average
equity
15.41
%
15.07
%
13.83
%
Adjusted annualized return on average
tangible common equity:
Average total shareholders' equity
$
339,504
$
327,029
$
288,961
Less: average intangible assets
(65,088
)
(65,531
)
(63,594
)
Average tangible common equity
$
274,416
$
261,498
$
225,367
Adjusted net income
13,045
12,149
9,935
Annualized return on average tangible
common equity
19.07
%
18.84
%
14.04
%
Adjusted annualized return on average
tangible common equity
19.07
%
18.84
%
17.73
%
Adjusted pre-tax pre-provision
income:
Income (loss) before provision for income
taxes
$
16,387
$
15,699
$
9,114
Add: merger related expenses
—
—
2,632
Add: provision for loan losses
—
—
3,000
Adjusted pre-tax pre-provision income
$
16,387
$
15,699
$
14,746
Tangible common equity to tangible
assets:
Tangible common equity:
Total shareholders' equity
$
346,289
$
331,699
$
295,543
Less: intangible assets
(64,830
)
(65,287
)
(63,351
)
Tangible common equity
$
281,459
$
266,412
$
232,192
Tangible assets:
Total assets
$
3,098,464
$
3,057,066
$
2,990,126
Less: intangible assets
(64,830
)
(65,287
)
(63,351
)
Tangible assets
$
3,033,634
$
2,991,779
$
2,926,775
Total shareholders' equity to total
assets
11.18
%
10.85
%
9.88
%
Tangible common equity to tangible
assets
9.28
%
8.90
%
7.93
%
Tangible book value per share:
Tangible common equity
$
281,459
$
266,412
$
232,192
Total shares of common stock
outstanding
16,672,511
16,654,415
16,631,604
Book value per common share
$
20.77
$
19.92
$
17.77
Tangible book value per share
$
16.88
$
16.00
$
13.96
Allowance for loan losses plus
unaccreted loan purchase discounts:
Allowance for loan losses
$
20,894
$
20,785
$
18,237
Unaccreted loan purchase discounts
12,980
14,833
21,939
Allowance for loan losses plus unaccreted
loan purchase discounts:
$
33,874
$
35,618
$
40,176
Total loans
2,321,070
2,277,714
2,317,324
Allowance for loan losses plus unaccreted
purchased loan discounts to total loans
1.46
%
1.56
%
1.73
%
Allowance for loan losses to total
loans
0.90
%
0.91
%
0.79
%
Bank segment adjusted net
income:
Bank segment net income (loss)
$
13,045
$
12,149
$
7,868
Add: merger related expenses
—
—
2,632
Less: income tax impact of merger related
expenses
—
—
(565
)
Bank segment adjusted net income
$
13,045
$
12,149
$
9,935
Bank segment adjusted noninterest
expense:
Bank segment noninterest expense
$
16,570
$
16,460
$
19,065
Add: merger related expenses
—
—
(2,632
)
Bank segment adjusted noninterest
expense
$
16,570
$
16,460
$
16,433
Bank segment adjusted efficiency
ratio:
Bank segment adjusted total revenues:
Bank segment net interest income
$
27,440
$
29,133
$
29,420
Add: Tax equivalent interest income
1,021
1,019
1,161
Add: Bank segment noninterest income
5,335
2,409
2,174
Less: Gains on sale of securities, OREO,
premises and equipment (3)
(2,922
)
(146
)
(338
)
Add: Swap termination fee (3)
2,859
—
—
Bank segment adjusted total revenues
$
33,733
$
32,415
$
32,417
Bank segment efficiency ratio
50.6
%
52.2
%
60.3
%
Bank segment adjusted efficiency ratio
49.1
%
50.8
%
50.7
%
Adjusted cost of funds:
Adjusted interest expense:
Interest Expense
$
6,534
$
4,356
$
5,959
Less: Swap termination fees
(2,859
)
—
—
Adjusted interest expense
$
3,675
$
4,356
$
5,959
Average funds
2,711,181
2,645,008
2,627,565
Cost of funds
0.97
%
0.67
%
0.91
%
Adjusted cost of funds
0.54
%
0.67
%
0.91
%
Adjusted cost of interest-bearing
liabilities:
Adjusted interest expense
$
3,675
$
4,356
$
5,959
Average interest-bearing liabilities
2,113,993
2,079,238
2,158,990
Cost of interest-bearing liabilities
1.24
%
0.85
%
1.11
%
Adjusted cost of interest-bearing
liabilities
0.70
%
0.85
%
1.11
%
Adjusted cost of deposits:
Adjusted deposit expense:
Deposit expense
$
5,541
$
3,399
$
4,829
Less: Swap termination fees
(2,859
)
—
—
Adjusted deposit expense
$
2,682
$
3,399
$
4,829
Average deposits
2,617,853
2,566,949
2,429,818
Cost of deposits
0.83
%
0.51
%
0.79
%
Adjusted cost of deposits
0.41
%
0.51
%
0.79
%
(1)
Prior calculation of this measure removed
tax credits related to certain tax-preference-qualified loans and
tax-exempt securities. The Company views these credits as normal
course of business and as such removal is unnecessary.
(2)
The swap termination fees included in the
adjusted net interest income calculation in the second quarter of
2021 were done so in conjunction with securities sales thereby
nullifying the effects on net income. Therefore, we have not
adjusted for these transactions as adjusted net income.
(3)
Securities sold in the second quarter of
2021 were done in conjunction with the swap termination fees.
Therefore, we have adjusted for both sides of this transaction.
This information is preliminary
and based on company data available at the time of
presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210720006145/en/
DeVan Ard, Jr., Chairman and CEO, Reliant Bancorp, Inc.
(615.221.2087)
Reliant Bancorp (NASDAQ:RBNC)
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