Reported Net Income of $13.3 million, or
Diluted EPS of $0.79
Loan Growth Continues With 11.8% Annualized
Increase
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 $13.3
million, or $0.79 per diluted common share, for the third quarter
of 2021 compared to net income attributable to common shareholders
of $13.0 million, or $0.78 per diluted common share, for the second
quarter of 2021, and $11.5 million, or $0.69 per diluted common
share, for the third quarter of 2020. When merger expenses are
excluded, income per diluted common share increased to $0.87 during
the third quarter of 2021 compared to $0.78 and $0.70 the second
quarter of 2021 and the third quarter of 2020, respectively.
DeVan Ard, Jr., Reliant Bancorp's Chairman and CEO stated, “I am
very pleased to continue 2021 with solid third quarter results as
evidenced by our strong net interest margin, sound asset quality,
and impressive loan production. Loan growth has continued to
accelerate with a 3.0% increase from the prior quarter. When PPP
loans are excluded, loan growth increased to 3.6%, or 14.2% when
annualized.”
Ard continued, “Our team continues to focus on reducing high
cost wholesale deposits, as customer deposits increased to make up
89.9% of our deposit portfolio and the cost of deposits decreased
to 0.58%, or 0.26% when adjusted for swap termination fees. We also
continued to build shareholder value as our book value and tangible
book value per share increased 2.8% and 3.7%, respectively, from
the prior quarter, or 11.3% and 14.6%, respectively, when
annualized. Additionally, shareholders’ equity to total assets and
tangible common equity to tangible assets increased to 11.82% and
9.90%, respectively, which allows us to continue to deliver
exceptional returns to our shareholders.”
Third Quarter Highlights
Dollar Amounts in Thousands, Except Per
Share Amounts
2021
2020
Third Quarter
Second Quarter
Third Quarter
Results of
Operations Highlights
Net income attributable to common
shareholders
$
13,289
$
13,045
$
11,533
Net income per diluted common share
$
0.79
$
0.78
$
0.69
Net interest margin (NIM) (1)
4.22
%
4.14
%
4.54
%
Adjusted NIM (2)
4.40
%
4.28
%
3.99
%
Pre-tax pre-provision income (2)
$
17,487
$
16,387
$
16,207
Efficiency ratio (tax equivalent
basis)
54.8
%
54.1
%
54.0
%
Bank segment adjusted efficiency ratio
(2)
46.4
%
49.1
%
48.6
%
Balance Sheet
Highlights
Loans
$
2,389,833
$
2,321,070
$
2,357,898
Allowance for loan losses
(20,897
)
(20,894
)
(19,834
)
Total assets
3,013,559
3,098,464
3,044,512
Total deposits
2,547,705
2,629,840
2,565,502
Book value per share
$
21.36
$
20.77
$
18.46
Tangible book value per share (2)
$
17.50
$
16.88
$
14.65
Return on
average: (3)
Assets ("ROAA")
1.74
%
1.69
%
1.53
%
Equity ("ROAE")
15.01
%
15.41
%
15.32
%
Tangible common equity ("ROATCE") (2)
18.40
%
19.07
%
19.42
%
(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 - Unaudited.”
(3)
Data has been annualized.
Net Interest Margin Improves Through
Asset Mix Optimization
Net interest margin increased to 4.22% at September 30, 2021, an
increase of 8 basis points from the previous quarter and a decrease
of 32 basis points from the third quarter of 2020. The linked
quarter increase was primarily due to a 23 basis point decrease in
our cost of funds due to a decrease in interest-bearing deposits,
especially higher cost wholesale time deposits, as well as a $2,290
swap termination fee incurred during the quarter compared to the
$2,859 swap termination fee incurred during the previous quarter.
The adjusted net interest margin, which excludes this swap
termination fee impact as well as the benefits from purchase
accounting accretion, showed continued improvement as it increased
12 basis points from the linked quarter to 4.40%. Net income and
earnings per share during the quarter were not affected by this
termination fee as securities were sold for a gain of $2,419 to
offset the transaction.
Loan yields remain strong at 4.96% when excluding fees,
representing a decrease of 16 basis points from the linked quarter
and a 38 basis point decrease from the same period in the prior
year, which can both largely be attributed to the decrease in
purchase accounting accretion. As of September 30, 2021, $12.0
million of purchase accounting accretion remains unaccreted.
The cost of deposits continued to improve to 0.58% with a
decrease of 25 basis points from the previous quarter and 4 basis
points from the third quarter of 2020. When removing the impact of
the second and third quarter swap termination fees the cost of
deposits improves even further to 0.26%, or a decrease of 15 basis
points from the previous quarter and 36 basis points from the third
quarter of 2020. This decrease is largely the result of a decrease
in average wholesale time deposits of $74.4 million and $104.6
million from the linked quarter and year-over-year, respectively.
These decreases were offset by an increase in average
noninterest-bearing deposits of $19.7 million and $80.6 million
from the linked quarter and year-over-year, respectively.
Continued Loan Growth and Asset Quality
Stability
Loans increased $68.8 million from the linked quarter to $2.4
billion. Loan originations during the quarter totaled $272.0
million at a weighted-average coupon rate of 4.15% with a continued
focus on credit quality through sound underwriting. These
originations were offset with principal payments, including PPP
forgiveness payments of $13.7 million. When PPP loans are excluded,
loans increased $82.5 million, or 3.6%, from the linked quarter and
$114.9 million, or 5.1%, year-over-year.
Our longstanding focus on credit quality continued to be a
source of strength with net recoveries continuing into the third
quarter. Nonperforming loans held for investment accounted for
0.22% of total loans held for investment and nonperforming assets
accounted for only 0.34% of total assets at September 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 0.60%. The allowance for loan loss was 0.87% of
loans (1.38% including unaccreted net purchased loan discounts) at
September 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 Newsweek’s recognition of the Bank as the Best
Small Bank in Tennessee for the second year in a row. We continue
to see increased demand in the loan pipeline as we move into the
fourth 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 September 30, 2021, Reliant Bancorp had
approximately $3.0 billion in total consolidated assets,
approximately $2.4 billion in loans held for investment and
approximately $2.5 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 financial 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 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 continued delivery of exceptional
shareholder returns, 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) unanticipated 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 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”), (24) 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, (25) the
occurrence of any event, change, or other circumstances that could
give rise to the termination of the definitive merger agreement for
the Transaction, (26) the amount of costs, fees, expenses and
charges related to the Transaction, including those arising as a
result of unexpected factors or events, (27) the ability to obtain
the shareholder and governmental approvals required for the
Transaction, (28) reputational risk associated with and the
reaction of the parties' customers, suppliers, employees, or other
business partners to the Transaction, (29) the failure of any of
the conditions to the closing of the Transaction to be satisfied,
or any unexpected delay in closing the Transaction, (30) 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 (31) 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 -
Unaudited
(Dollar amounts in thousands,
except per share amounts)
September 30, 2021
June 30, 2021
September 30, 2020
ASSETS
Cash and due from banks
$
13,270
$
11,763
$
14,050
Interest-bearing deposits in financial
institutions
66,155
43,676
61,349
Federal funds sold
1,002
656
12,273
Total cash and cash equivalents
80,427
56,095
87,672
Securities available for sale
254,416
266,695
273,893
Loans
2,389,833
2,321,070
2,357,898
Less: allowance for loan losses
(20,897
)
(20,894
)
(19,834
)
Loans, net
2,368,936
2,300,176
2,338,064
Mortgage loans held for sale, net
62,543
229,418
99,587
Accrued interest receivable
14,374
14,492
14,615
Premises and equipment, net
27,519
29,183
33,319
Operating leases right of use assets
12,427
12,744
14,619
Restricted equity securities, at cost
15,770
15,770
17,367
Other real estate, net
3,088
2,233
1,326
Cash surrender value of life insurance
contracts
78,460
78,979
68,109
Deferred tax assets, net
5,788
5,978
8,523
Goodwill
54,396
54,396
51,506
Core deposit intangibles
9,978
10,434
11,820
Other assets
25,437
21,871
24,092
TOTAL ASSETS
$
3,013,559
$
3,098,464
$
3,044,512
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand
$
626,598
$
602,555
$
538,844
Interest-bearing demand
410,923
441,161
272,805
Savings and money market deposit
accounts
989,677
1,003,402
813,001
Time
520,507
582,722
940,852
Total deposits
2,547,705
2,629,840
2,565,502
Accrued interest payable
2,302
1,967
3,744
Federal funds purchased
—
—
5,000
Subordinated debentures
70,821
70,770
70,389
Federal Home Loan Bank advances
—
16,000
40,555
Operating leases liabilities
13,605
13,932
15,756
Other liabilities
22,811
19,666
36,480
TOTAL LIABILITIES
2,657,244
2,752,175
2,737,426
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; 16,682,928, 16,672,511, and
16,634,572 shares issued and outstanding at September 30, 2021,
June 30, 2021, and September 30, 2020, respectively
16,683
16,673
16,635
Additional paid-in capital
234,696
234,390
232,738
Retained earnings
98,182
86,917
55,206
Accumulated other comprehensive income
6,754
8,309
2,507
TOTAL SHAREHOLDERS’ EQUITY
356,315
346,289
307,086
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
3,013,559
$
3,098,464
$
3,044,512
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
September 30,
2021
June 30, 2021
September 30,
2020
INTEREST INCOME
Interest and fees on loans
$
30,817
$
31,183
$
32,895
Interest and fees on loans held for
sale
1,184
1,807
1,037
Interest on investment securities,
taxable
786
663
399
Interest on investment securities,
nontaxable
928
1,216
1,186
Restricted equity securities and other
215
226
251
TOTAL INTEREST INCOME
33,930
35,095
35,768
INTEREST EXPENSE
Deposits
Demand
153
216
236
Savings and money market deposit
accounts
441
647
1,162
Time
3,348
4,678
2,735
Federal Home Loan Bank advances and other
borrowings
9
13
104
Subordinated debentures
980
980
992
TOTAL INTEREST EXPENSE
4,931
6,534
5,229
NET INTEREST INCOME
28,999
28,561
30,539
PROVISION FOR LOAN LOSSES
—
—
1,500
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
28,999
28,561
29,039
NONINTEREST INCOME
Service charges on deposit accounts
1,678
1,656
1,583
Gains on mortgage loans sold, net
4,218
2,978
3,784
Gain on securities transactions, net
2,419
2,966
—
Income from bank owned life insurance
2,181
556
386
Other noninterest income
373
154
249
TOTAL NONINTEREST INCOME
10,869
8,310
6,002
NONINTEREST EXPENSE
Salaries and employee benefits
12,426
12,793
12,184
Occupancy
2,038
1,999
2,054
Data processing and software
2,265
2,262
2,240
Professional fees
526
358
775
Regulatory fees
328
343
365
Merger expenses
1,453
—
77
Other operating expense
3,345
2,729
2,639
TOTAL NONINTEREST EXPENSE
22,381
20,484
20,334
INCOME BEFORE PROVISION FOR INCOME
TAXES
17,487
16,387
14,707
INCOME TAX EXPENSE
3,551
3,202
2,800
CONSOLIDATED NET INCOME
13,936
13,185
11,907
NONCONTROLLING INTEREST IN NET (INCOME)
LOSS OF SUBSIDIARY
(647
)
(140
)
(374
)
NET INCOME ATTRIBUTABLE TO COMMON
SHAREHOLDERS
$
13,289
$
13,045
$
11,533
Basic net income attributable to common
shareholders, per share
$
0.80
$
0.79
$
0.70
Diluted net income attributable to common
shareholders, per share
$
0.79
$
0.78
$
0.69
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
September 30, 2021
Commercial Banking
Residential
Mortgage Banking
Elimination
Entries
Consolidated
Net interest income
$
28,164
$
835
$
—
$
28,999
Provision for loan losses
—
—
—
—
Noninterest income
6,651
4,177
41
10,869
Noninterest expense (excluding merger
expense)
16,551
4,377
—
20,928
Merger expense
1,453
—
—
1,453
Income tax expense
3,522
29
—
3,551
Net income
13,289
606
41
13,936
Noncontrolling interest in net income of
subsidiary
—
(606
)
(41
)
(647
)
Net income attributable to common
shareholders
$
13,289
$
—
$
—
$
13,289
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
September 30, 2020
Commercial Banking
Residential Mortgage
Banking
Elimination Entries
Consolidated
Net interest income
$
29,731
$
808
$
—
$
30,539
Provision for loan losses
1,500
—
—
1,500
Noninterest income
2,219
3,797
(14
)
6,002
Noninterest expense (excluding merger
expense)
16,067
4,190
—
20,257
Merger expense
77
—
—
77
Income tax expense
2,773
27
—
2,800
Net (loss) income
11,533
388
(14
)
11,907
Noncontrolling interest in net loss of
subsidiary
—
(388
)
14
(374
)
Net income attributable to common
shareholders
$
11,533
$
—
$
—
$
11,533
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,
September 30, 2021
June 30, 2021
September 30, 2020
Per Common Share
Basic net income
$
0.80
$
0.79
$
0.70
Diluted net income
$
0.79
$
0.78
$
0.69
Adjusted diluted income(1)
$
0.87
$
0.78
$
0.70
Book value
$
21.36
$
20.77
$
18.46
Tangible book value(1)
$
17.50
$
16.88
$
14.65
Shares Outstanding
Basic weighted average common shares
16,665,155
16,616,888
16,587,274
Diluted weighted average common shares
16,805,157
16,784,744
16,649,673
Common shares outstanding at period
end
16,682,928
16,672,511
16,634,572
Selected Balance Sheet Data
Loans, net of unearned income
$
2,389,833
$
2,321,070
$
2,357,898
Total assets
3,013,559
3,098,464
3,044,512
Customer deposits
2,289,737
2,320,054
2,185,915
Wholesale and institutional deposits
257,968
309,786
379,587
Total deposits
2,547,705
2,629,840
2,565,502
Total liabilities
2,657,244
2,752,175
2,737,426
Total shareholders' equity
356,315
346,289
307,086
Selected Balance Sheet Data - Quarterly
Averages
Loans held for investment
$
2,360,073
$
2,288,841
$
2,337,958
Total assets
3,036,777
3,088,329
2,991,818
Interest-bearing liabilities
2,032,296
2,113,993
2,108,428
Total liabilities
2,685,605
2,748,825
2,692,383
Total shareholders' equity
351,172
339,504
299,435
Selected Performance Ratios
Return on average assets
(2)
1.74
%
1.69
%
1.53
%
Return on shareholders' equity
(2)
15.01
%
15.41
%
15.32
%
Return on average tangible common
equity(1) (2)
18.40
%
19.07
%
19.42
%
Average shareholders' equity to average
assets
11.56
%
10.99
%
10.01
%
Net interest margin (tax-equivalent basis)
(2)
4.22
%
4.14
%
4.54
%
Efficiency Ratio (tax-equivalent
basis)
54.8
%
54.1
%
54.0
%
Bank Segment efficiency ratio (1)
46.4
%
49.1
%
48.6
%
Loans held for investment to deposits
ratio
93.8
%
88.3
%
91.9
%
Interest Rates and Yields (2)
Yield on interest-earning assets
4.91
%
5.05
%
5.29
%
Yield on loans held for investment
5.29
%
5.58
%
5.73
%
Cost of interest-bearing liabilities
0.96
%
1.24
%
0.99
%
Adjusted cost of interest-bearing
liabilities (1)
0.52
%
0.70
%
0.99
%
Cost of funds
0.74
%
0.97
%
0.79
%
Adjusted cost of funds (1)
0.40
%
0.54
%
0.79
%
Cost of total deposits
0.58
%
0.83
%
0.62
%
Adjusted cost of total deposits (1)
0.26
%
0.41
%
0.62
%
Preliminary Consolidated Capital Ratios
(3)
Tier 1 leverage
10.04
%
9.47
%
8.72
%
Common equity tier 1
10.52
%
10.18
%
9.77
%
Tier 1 risk-based capital
10.95
%
10.62
%
10.25
%
Total risk-based capital
13.92
%
13.62
%
13.44
%
Selected Asset Quality Measures
Allowance for loan losses to total
loans
0.87
%
0.90
%
0.84
%
Allowance for loan losses plus unaccreted
purchased loan discounts to total loans (1)
1.38
%
1.46
%
1.64
%
Net (recoveries) charge offs
$
(3
)
$
(109
)
$
(97
)
Net (recoveries) charge offs to average
loans (2)
—
%
(0.02
)%
(0.02
)%
Total nonperforming loans held for
investment (HFI)
$
5,302
$
5,355
$
6,802
Total nonperforming assets (4)
$
10,232
$
9,726
$
9,731
Nonperforming loans HFI to total loans
HFI
0.22
%
0.23
%
0.29
%
Nonperforming assets to total assets
0.34
%
0.31
%
0.32
%
Nonperforming assets to total loans HFI
and NPAs
0.43
%
0.42
%
0.41
%
(1)
Certain measures are considered non-GAAP
financial measures. See “Reconciliation of Non-GAAP Financial
Measures - unaudited”.
(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
September 30, 2021
Three Months Ended June
30, 2021
Three Months Ended
September 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)
$
2,360,073
4.96
$
28,847
$
2,288,841
5.12
$
28,539
$
2,337,958
5.34
$
30,640
Loan fees
—
0.33
1,970
—
0.46
2,644
—
0.38
2,255
Loans with fees
2,360,073
5.29
30,817
2,288,841
5.58
31,183
2,337,958
5.73
32,895
Mortgage loans held for sale
134,245
3.50
1,184
232,850
3.11
1,807
103,729
3.98
1,037
Deposits with banks
45,885
0.39
45
58,619
0.36
52
57,909
0.47
68
Investment securities - taxable
106,433
2.93
786
73,368
3.62
663
67,569
2.35
399
Investment securities - tax-exempt (4)
154,417
3.10
928
197,309
3.19
1,216
185,058
3.30
1,186
Restricted equity securities and other
17,111
3.94
170
17,816
3.92
174
19,694
3.70
183
Total earning assets
2,818,164
4.91
33,930
2,868,803
5.05
35,095
2,771,917
5.29
35,768
Nonearning assets
218,613
219,526
219,901
Total assets
$
3,036,777
$
3,088,329
$
2,991,818
Interest bearing liabilities
Interest bearing demand
$
411,796
0.15
$
153
$
412,117
0.21
$
216
$
272,506
0.34
$
236
Savings and money market
980,069
0.18
441
972,082
0.27
647
786,589
0.59
1,162
Time deposits - retail
440,390
0.74
825
443,512
0.94
1,042
715,310
0.97
1,744
Time deposits - wholesale
118,520
8.45
2,523
192,954
7.56
3,636
223,095
1.77
991
Total interest-bearing deposits
1,950,775
0.80
3,942
2,020,665
1.10
5,541
1,997,500
0.82
4,133
Federal Home Loan Bank advances and other
borrowings
10,724
0.33
9
22,582
0.23
13
40,567
1.02
104
Subordinated debt
70,797
5.49
980
70,746
5.56
980
70,361
5.61
992
Total borrowed funds
81,521
4.81
989
93,328
4.27
993
110,928
3.93
1,096
Total interest-bearing
liabilities
2,032,296
0.96
4,931
2,113,993
1.24
6,534
2,108,428
0.99
5,229
Net interest spread (5)
3.95
28,999
3.81
28,561
4.30
30,539
Noninterest bearing deposits
616,904
(0.22
)
597,188
(0.27
)
536,353
(0.20
)
Other noninterest bearing liabilities
36,405
37,644
47,602
Shareholders' equity
351,172
339,504
299,435
Total liabilities and shareholders'
equity
$
3,036,777
$
3,088,329
$
2,991,818
Cost of funds
0.74
0.97
0.79
Net interest margin (6)
4.22
4.14
4.54
(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 $669, $667,
and $760, for the three months ended September 30, 2021, June 30,
2021, and September 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
September 30, 2021
June 30, 2021
September 30, 2020
Adjusted net interest margin:
Net interest income
$
28,999
$
28,561
$
30,539
Add: tax equivalent interest income
947
1,021
1,107
Add: swap termination fees
2,290
2,859
—
Less: purchase accounting adjustments
(993
)
(1,839
)
(3,868
)
Adjusted net interest income
31,243
30,602
27,778
Average earning assets
$
2,818,164
$
2,868,803
$
2,771,917
Net interest margin-tax equivalent
4.22
%
4.14
%
4.54
%
Adjusted net interest margin
4.40
%
4.28
%
3.99
%
Adjusted net income (1):
Net income attributable to common
shareholders
$
13,289
$
13,045
$
11,533
Add: merger related expenses
1,453
—
77
Less: income tax impact of merger related
expenses
(48
)
—
(10
)
Adjusted net income
$
14,694
$
13,045
$
11,600
Adjusted diluted earnings per
share:
Adjusted net income
$
14,694
$
13,045
$
11,600
Weighted average shares - diluted
16,805,157
16,784,744
16,649,673
Diluted earnings per share
$
0.79
$
0.78
$
0.69
Adjusted diluted earnings per share
$
0.87
$
0.78
$
0.70
Adjusted annualized return on average
assets:
Adjusted net income
$
14,694
$
13,045
$
11,600
Average assets
3,036,777
3,088,329
2,991,818
Annualized return on average assets
1.74
%
1.69
%
1.53
%
Adjusted annualized return on average
assets
1.92
%
1.69
%
1.54
%
Adjusted annualized return on average
equity:
Adjusted net income
$
14,694
$
13,045
$
11,600
Average total shareholders' equity
351,172
339,504
299,435
Annualized return on average equity
15.01
%
15.41
%
15.32
%
Adjusted annualized return on average
equity
16.60
%
15.41
%
15.41
%
Adjusted annualized return on average
tangible common equity:
Average total shareholders' equity
$
351,172
$
339,504
$
299,435
Less: average intangible assets
(64,607
)
(65,088
)
(63,212
)
Average tangible common equity
$
286,565
$
274,416
$
236,223
Adjusted net income
14,694
13,045
11,600
Annualized return on average tangible
common equity
18.40
%
19.07
%
19.42
%
Adjusted annualized return on average
tangible common equity
20.34
%
19.07
%
19.54
%
Adjusted pre-tax pre-provision
income:
Income before provision for income
taxes
$
17,487
$
16,387
$
14,707
Add: merger related expenses
1,453
—
77
Add: provision for loan losses
—
—
1,500
Adjusted pre-tax pre-provision income
$
18,940
$
16,387
$
16,284
Tangible common equity to tangible
assets:
Tangible common equity:
Total shareholders' equity
$
356,315
$
346,289
$
307,086
Less: intangible assets
(64,374
)
(64,830
)
(63,326
)
Tangible common equity
$
291,941
$
281,459
$
243,760
Tangible assets:
Total assets
$
3,013,559
$
3,098,464
$
3,044,512
Less: intangible assets
(64,374
)
(64,830
)
(63,326
)
Tangible assets
$
2,949,185
$
3,033,634
$
2,981,186
Total shareholders' equity to total
assets
11.82
%
11.18
%
10.09
%
Tangible common equity to tangible
assets
9.90
%
9.28
%
8.18
%
Tangible book value per share:
Tangible common equity
$
291,941
$
281,459
$
243,760
Total shares of common stock
outstanding
16,682,928
16,672,511
16,634,572
Book value per common share
$
21.36
$
20.77
$
18.46
Tangible book value per share
$
17.50
$
16.88
$
14.65
Allowance for loan losses plus
unaccreted loan purchase discounts:
Allowance for loan losses
$
20,897
$
20,894
$
19,834
Unaccreted loan purchase discounts
11,993
12,980
18,939
Allowance for loan losses plus unaccreted
loan purchase discounts:
$
32,890
$
33,874
$
38,773
Total loans
2,389,833
2,321,070
2,357,898
Allowance for loan losses plus unaccreted
purchased loan discounts to total loans
1.38
%
1.46
%
1.64
%
Allowance for loan losses to total
loans
0.87
%
0.90
%
0.84
%
Bank segment adjusted net
income:
Bank segment net income
$
13,289
$
13,045
$
11,533
Add: merger related expenses
1,453
—
77
Less: income tax impact of merger related
expenses
(48
)
—
(10
)
Bank segment adjusted net income
$
14,694
$
13,045
$
11,600
Bank segment adjusted noninterest
expense:
Bank segment noninterest expense
$
18,004
$
16,570
$
16,144
Add: merger related expenses
(1,453
)
—
(77
)
Bank segment adjusted noninterest
expense
$
16,551
$
16,570
$
16,067
Bank segment adjusted efficiency
ratio:
Bank segment adjusted total revenues:
Bank segment net interest income
$
28,164
$
27,440
$
29,731
Add: Tax equivalent interest income
947
1,021
1,107
Add: Bank segment noninterest income
6,651
5,335
2,219
Less: Gains on sale of securities, OREO,
premises and equipment (2)
(2,405
)
(2,922
)
9
Add: Swap termination fee (2)
2,290
2,859
—
Bank segment adjusted total revenues
$
35,647
$
33,733
$
33,066
Bank segment efficiency ratio
51.7
%
50.6
%
50.5
%
Bank segment adjusted efficiency ratio
46.4
%
49.1
%
48.6
%
Adjusted cost of funds:
Adjusted interest expense:
Interest expense
$
4,931
$
6,534
$
5,229
Less: Swap termination fees
(2,290
)
(2,859
)
—
Adjusted interest expense
$
2,641
$
3,675
$
5,229
Average funds
2,649,200
2,711,181
2,644,781
Cost of funds
0.74
%
0.97
%
0.79
%
Adjusted cost of funds
0.40
%
0.54
%
0.79
%
Adjusted cost of interest-bearing
liabilities:
Adjusted interest expense
$
2,641
$
3,675
$
5,229
Average interest-bearing liabilities
2,032,296
2,113,993
2,108,428
Cost of interest-bearing liabilities
0.96
%
1.24
%
0.99
%
Adjusted cost of interest-bearing
liabilities
0.52
%
0.70
%
0.99
%
Adjusted cost of deposits:
Adjusted deposit expense:
Deposit expense
$
3,942
$
5,541
$
4,133
Less: Swap termination fees
(2,290
)
(2,859
)
—
Adjusted deposit expense
$
1,652
$
2,682
$
4,133
Average deposits
2,567,679
2,617,853
2,533,853
Cost of deposits
0.58
%
0.83
%
0.62
%
Adjusted cost of deposits
0.26
%
0.41
%
0.62
%
(1)
The swap termination fees included in the
adjusted net interest income calculation in the second and third
quarters 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.
(2)
Securities sold in the second and third
quarters 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/20211019006066/en/
DeVan Ard, Jr., Chairman and CEO, Reliant Bancorp, Inc.
(615.221.2087)
Reliant Bancorp (NASDAQ:RBNC)
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