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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  April 29, 2020
403793891_axosfina13.jpg

Axos Financial, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-37709
33-0867444
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification
Number)
 9205 West Russell Road, STE 400, Las Vegas, NV                  89148
(Address of principal executive offices)                    (zip code)
Registrant’s telephone number, including area code: (858649-2218          
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $.01 par value
AX
New York Stock Exchange
6.25% Subordinated Notes Due 2026
AXO
New York Stock Exchange

Not Applicable

(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                                    Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  





Item 2.02    Results of Operations and Financial Condition

On April 29, 2020, Axos Financial, Inc. (the “Registrant”) issued a press release announcing its second quarter results of operations for the period ended March 31, 2020. The press release is set forth as Exhibit 99.1 and is incorporated by reference in this Item 2.02.

Pursuant to General Instruction B.2. of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1 is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


Item 9.01     Financial Statements and Exhibits

(d)    Exhibits.
Exhibit
 
Description
99.1
 
 
 
 







SIGNATURE

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
Axos Financial, Inc.
 
 
 
Date:
April 29, 2020
By:
/s/ Andrew J. Micheletti
 
 
 
 
Andrew J. Micheletti
 
 
 
EVP and Chief Financial Officer



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


403793891_axosfina13.jpg
Axos Financial, Inc. Reports Record Third Quarter 2020 Earnings
Return on Equity of 18.65% in the Three Months Ended March 31, 2020

SAN DIEGO, CA – (BUSINESS WIRE) – April 29, 2020 – Axos Financial, Inc. (NYSE: AX) (Axos), parent company of Axos Bank (the Bank), today announced financial results for the third fiscal quarter ended March 31, 2020. Net income was $56.1 million, an increase of 44.4% from $38.8 million for the quarter ended March 31, 2019. Earnings attributable to Axos’ common stockholders were $56.0 million or $0.91 per diluted share for the third quarter of fiscal 2020, an increase of 44.5% from $38.7 million or $0.63 per diluted share for the third quarter ended March 31, 2019.
Adjusted earnings and adjusted earnings per diluted common share (“adjusted EPS”), non-GAAP measures, which excludes non-cash amortization expenses and non-recurring costs related to mergers and acquisitions, and other non-recurring costs increased 11.9% to $57.7 million and increased 11.9% to $0.94, respectively, for the quarter ended March 31, 2020 compared to $51.5 million and $0.84, respectively, for the quarter ended March 31, 2019.
Third Quarter Fiscal 2020 Financial Summary
 
Three Months Ended March 31
 
 
(Dollars in thousands, except per share data)
Q3 Fiscal 2020
 
Q3 Fiscal 2019
 
% Change
Net interest income
$
148,616

 
$
129,169

 
15.1%
Non-interest income
$
31,542

 
$
26,098

 
20.9%
Net income
$
56,057

 
$
38,821

 
44.4%
Adjusted earnings (Non-GAAP)1
$
57,652

 
$
51,518

 
11.9%
Net income attributable to common stockholders
$
55,980

 
$
38,744

 
44.5%
Diluted EPS
$
0.91

 
$
0.63

 
44.4%
Adjusted EPS (Non-GAAP)1
$
0.94

 
$
0.84

 
11.9%
1 See “Use of Non-GAAP Financial Measures”
 
 
 
 
 

For the nine months ended March 31, 2020, net income was a record $138.1 million, an increase of 20.6% over net income of $114.5 million for the nine months ended March 31, 2019. Earnings attributable to Axos’ common stockholders were $137.9 million or $2.23 per diluted share for the nine months ended March 31, 2020, an increase of 21.9% from $114.3 million or $1.83 per diluted share for the nine months ended March 31, 2019. Record earnings for the fiscal third quarter and for the nine months ended March 31, 2020 were primarily the result of growth in the Bank’s loan and lease portfolio.
“We maintained strong profitability and efficiency in a volatile environment,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Our team members and management team adjusted quickly to accommodate the needs of our clients, employees and partners across our consumer, commercial and securities businesses. Our record quarterly earnings, strong capital ratios and credit metrics are a direct result of our diverse and efficient business model and our culture of execution.”







Other Highlights
Total assets reached $12.2 billion, up $1.3 billion or 11.8% compared to March 31, 2019
Loan and lease portfolio grew by $1.3 billion or 14.0% compared to March 31, 2019
Loan and lease originations for the three months ended March 31, 2020 were approximately $2.9 billion, up 14.8% compared to the quarter ended March 31, 2019
Total deposits increased by $0.9 billion, up 10.5% from March 31, 2019
Net interest margin was 4.90% compared to 4.84% in the three months ended March 31, 2019; net interest margin for the banking business segment was 4.97% compared to 4.94% in the March 31, 2019 period
Efficiency ratio for the banking business segment was 33.21% compared to 35.26% in the March 31, 2019 period
Net annualized charge-offs of 3 basis points compared to 4 basis points in the March 31, 2019 period
Provision for loan loss reserves was $28.5 million, up $9.5 million from $19.0 million in the March 31, 2019 period
Return on average common stockholders’ equity was 18.65% for the three months ended March 31, 2020
Book value increased to $19.77 per share, up 17.1% from March 31, 2019
Third Quarter Fiscal 2020 Income Statement Summary
During the quarter ended March 31, 2020, Axos earned $56.0 million or $0.91 per diluted share compared to $38.7 million, or $0.63 per diluted share for the quarter ended March 31, 2019. Net interest income increased $19.4 million or 15.1% for the quarter ended March 31, 2020 compared to March 31, 2019, primarily due to $1.5 billion growth in average-earning assets at the Bank.
The loan and lease loss provision was $28.5 million for the quarter ended March 31, 2020 compared to $19.0 million for the quarter ended March 31, 2019. The increase in the provision is primarily the result of additional provision for Refund Advance loans consistent with increased originations in the loan product and the changes in economic and business conditions, resulting from the COVID-19 pandemic, including in the hospitality, retail and oil & gas sectors.
For the third quarter ended March 31, 2020, non-interest income was $31.5 million compared to $26.1 million for the three months ended March 31, 2019. The $5.4 million increase was the result of a $2.6 million increase in mortgage banking income, an increase of broker dealer fees of $1.3 million, a $0.8 million decrease in unrealized loss on securities, and a $0.7 million increase in prepayment penalty fee income.
Non-interest expense or operating costs decreased $10.0 million to $71.8 million for the quarter ended March 31, 2020 from $81.8 million for the three months ended March 31, 2019. The decrease was mainly a result of a prior year non-recurring charge of $15.3 million in our Securities Business bad debt reserve for an uncollectible receivable, partially offset by an increase in salaries and related expense of $2.5 million due to staffing additions from the acquisition of the Securities Business and to support growth in the Bank’s operations. Other operating expense increases included a $1.4 million increase in depreciation and amortization primarily due to amortization of intangibles and a $1.1 million increase in broker-dealer clearing charges.
Balance Sheet Summary
Axos’ total assets increased $939.7 million, or 8.4%, to $12,159.9 million, as of March 31, 2020, up from $11,220.2 million at June 30, 2019. The increase in total assets was primarily due to an increase in loan portfolio growth of $990.8 million on a net basis, primarily from portfolio loan originations of $5,493.3 million less principal repayments and other adjustments of $4,502.5 million. Total liabilities increased by $828.3 million, or 8.2%, to $10,975.5 million at March 31, 2020, up from $10,147.2 million at June 30, 2019. The increase in total liabilities primarily resulted from an increase in deposits of $584.2 million and a $312.0 million increase in advances from the FHLB, partially offset by $121.8 million decrease in securities loaned. Stockholders’ equity increased by $111.4 million, or 10.4%, to $1,184.5 million at March 31, 2020 from $1,073.1 million at June 30, 2019. The increase was primarily the result of $138.1 million in net income, $12.1 million of vesting and issuance of RSUs and stock-based compensation expense, partially offset by $35.8 million of common stock repurchases and $0.2 million of dividends declared on preferred stock.
The Bank’s Tier 1 core capital to adjusted average assets ratio was 8.72% at March 31, 2020, which is at a seasonally reduced level as a result of carrying increased amounts of short-term tax related assets. At March 31, 2019, the Tier 1 core capital to adjusted average assets ratio was 8.68%.





Conference Call
A conference call and webcast will be held on Wednesday, April 29, 2020 at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live and may be accessed at Axos’ website, http://www.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until May 29, 2020, at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13701354.
About Axos Financial, Inc. and Subsidiaries
The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (the “Axos Nevada Holding” and collectively, the “Company”). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing, LLC, a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. With approximately $12.2 billion in assets, Axos Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC and Axos Invest, Inc., provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index. For more information on Axos Bank, please visit axosbank.com.
Segment Reporting
The Company determines reportable segments based on what separate financial information is available and what segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The Company operates through two segments: Banking Business and Securities Business. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations.
The following tables present the operating results of the segments:
 
Three Months Ended March 31, 2020
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
145,372

 
$
3,954

 
$
(710
)
 
$
148,616

Provision for loan losses
28,500

 

 

 
28,500

Non-interest income
25,259

 
6,402

 
(119
)
 
31,542

Non-interest expense
56,661

 
11,137

 
3,992

 
71,790

Income before taxes
$
85,470

 
$
(781
)
 
$
(4,821
)
 
$
79,868


 
Three Months Ended March 31, 2019
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
127,072

 
$
2,951

 
$
(854
)
 
$
129,169

Provision for loan losses
19,000

 

 

 
19,000

Non-interest income
21,027

 
5,071

 

 
26,098

Non-interest expense
52,224

 
23,102

 
6,489

 
81,815

Income before taxes
$
76,875

 
$
(15,080
)
 
$
(7,343
)
 
$
54,452






 
Nine Months Ended March 31, 2020
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
350,184

 
$
13,137

 
$
(2,982
)
 
$
360,339

Provision for loan losses
35,700

 

 

 
35,700

Non-interest income
57,274

 
19,087

 
(2,076
)
 
74,285

Non-interest expense
160,547

 
32,656

 
11,019

 
204,222

Income before taxes
$
211,211

 
$
(432
)
 
$
(16,077
)
 
$
194,702

 
Nine Months Ended March 31, 2019
(Dollars in thousands)
Banking Business
 
Securities Business
 
Corporate/Eliminations
 
Axos Consolidated
Net interest income
$
307,564

 
$
2,951

 
$
(2,347
)
 
$
308,168

Provision for loan losses
24,550

 

 

 
24,550

Non-interest income
54,462

 
5,071

 

 
59,533

Non-interest expense
142,291

 
23,102

 
20,277

 
185,670

Income before taxes
$
195,185

 
$
(15,080
)
 
$
(22,624
)
 
$
157,481

Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this report includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious as to their use of such measures. Although we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.
We define net income without the after-tax impact of non-recurring acquisition-related costs (including amortization of intangible assets related to acquisitions), and excess FDIC expense, and other costs (unusual or non-recurring charges), as “adjusted earnings”, a non-GAAP financial measure. Excess FDIC expense is defined as the higher insurance costs associated with increased levels of short-term brokered deposits in anticipation of the acquisition of deposits from Nationwide Bank. Adjusted earnings per diluted common share (“adjusted EPS”), a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about the Bank’s operating performance. Excluding the non-recurring acquisition related costs, excessive FDIC expense, and other costs provides investors with an understanding of Axos’ business without these non-recurring costs.
Below is a reconciliation of net income to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:
 
Three Months Ended
 
Nine Months Ended
 
March 31,
 
March 31,
(Dollars in thousands, except per share amounts)
2020
 
2019
 
2020
 
2019
Net income
$
56,057

 
$
38,821

 
$
138,138

 
$
114,497

Acquisition-related costs
2,273

 
2,511

 
6,520

 
4,644

Excess FDIC expense

 

 

 
1,111

Other costs

 
15,299

 

 
15,299

Income taxes
(678
)
 
(5,113
)
 
(1,895
)
 
(5,746
)
Adjusted earnings (Non-GAAP)
$
57,652

 
$
51,518

 
$
142,763

 
$
129,805

Adjusted EPS (Non-GAAP)
$
0.94

 
$
0.84

 
$
2.31

 
$
2.07







We define book value adjusted for goodwill and other intangible assets as tangible book value (“tangible book value”), a non-GAAP financial measure. Tangible book value is calculated using common stockholders’ equity minus mortgage servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.
Below is a reconciliation of total stockholders’ equity to tangible book value (Non-GAAP) as of the dates indicated:
 
March 31,
(Dollars in thousands, except per share amounts)
2020
 
2019
Total stockholders’ equity
$
1,184,452

 
$
1,039,485

Less: preferred stock
5,063

 
5,063

Common stockholders’ equity
1,179,389

 
1,034,422

Less: mortgage servicing rights, carried at fair value
9,962

 
10,355

Less: goodwill and other intangible assets
127,962

 
136,076

Tangible common stockholders’ equity (Non-GAAP)
$
1,041,465

 
$
887,991

Common shares outstanding at end of period
59,653,192

 
61,285,375

Tangible book value per common share (Non-GAAP)
$
17.46

 
$
14.49



Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to the effects on our business of the current novel coronavirus pandemic (“COVID-19”), Axos’ financial prospects and other projections of its performance and asset quality, Axos’ ability to continue to grow profitably and increase its business, Axos’ ability to successfully integrate its recent acquisitions and realize the anticipated benefits of the transactions, Axos’ ability to continue to diversify its lending and deposit franchises and the anticipated timing and financial performance of other offerings, initiatives, and acquisitions. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation uncertainties surrounding the severity, duration, and effects of the COVID-19 pandemic, changes in the interest rate environment, inflation, government regulation, general economic conditions, conditions in the real estate markets in which we operate, risks associated with credit quality, the outcome and effects of pending class action litigation filed against the Company and other factors beyond our control. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axos undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

Investor Relations Contact:
Johnny Lai, CFA
VP, Corporate Development & Investor Relations
858-649-2218
[email protected]





The following tables set forth certain selected financial data concerning the periods indicated:
AXOS FINANCIAL, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands)
 
March 31,
2020
 
June 30,
2019
 
March 31,
2019
Selected Balance Sheet Data:
 
 
 
 
 
Total assets
$
12,159,919

 
$
11,220,238

 
$
10,875,561

Loans and leases—net of allowance for loan and lease losses
10,372,921

 
9,382,124

 
9,098,453

Loans held for sale, carried at fair value
40,236

 
33,260

 
15,714

Loans held for sale, lower of cost or fair value
29

 
4,800

 
3,267

Allowance for loan and lease losses
87,097

 
57,085

 
71,746

Securities—trading
919

 

 

Securities—available-for-sale
191,388

 
227,513

 
219,156

Securities borrowed
53,816

 
144,706

 
127,167

Customer, broker-dealer and clearing receivables
187,353

 
203,192

 
252,900

Total deposits
9,567,338

 
8,983,173

 
8,655,455

Advances from the FHLB
770,500

 
458,500

 
443,500

Borrowings, subordinated notes and debentures
76,285

 
168,929

 
214,477

Securities loaned
76,587

 
198,356

 
201,574

Customer, broker-dealer and clearing payables
318,100

 
238,604

 
245,208

Total stockholders’ equity
1,184,452

 
1,073,050

 
1,039,485

 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
Equity to assets at end of period
9.74
%
 
9.56
%
 
9.56
%
Axos Financial, Inc.:
 
 
 
 
 
Tier 1 leverage (core) capital to adjusted average assets
8.55
%
 
8.75
%
 
8.36
%
Common equity tier 1 capital (to risk-weighted assets)
11.34
%
 
11.43
%
 
11.46
%
Tier 1 capital (to risk-weighted assets)
11.39
%
 
11.49
%
 
11.52
%
Total capital (to risk-weighted assets)
12.96
%
 
12.91
%
 
13.19
%
Axos Bank:
 
 
 
 
 
Tier 1 leverage (core) capital to adjusted average assets
8.72
%
 
9.21
%
 
8.68
%
Common equity tier 1 capital (to risk-weighted assets)
11.62
%
 
12.14
%
 
12.33
%
Tier 1 capital (to risk-weighted assets)
11.62
%
 
12.14
%
 
12.33
%
Total capital (to risk-weighted assets)
12.60
%
 
12.89
%
 
13.31
%
Axos Clearing, LLC:
 
 
 
 
 
Net capital
$
33,863

 
$
21,669

 
$
22,381

Excess capital
$
30,341

 
$
17,858

 
$
17,759

Net capital as a percentage of aggregate debit items
19.23
%
 
11.37
%
 
9.68
%
Net capital in excess of 5% aggregate debit items
$
25,057

 
$
12,142

 
$
10,825








AXOS FINANCIAL, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Unaudited – dollars in thousands, except per share data)
 
At or for the Three Months Ended
 
At or for the Nine Months Ended
 
March 31,
 
March 31,
 
2020
 
2019
 
2020
 
2019
Selected Income Statement Data:
 
 
 
 
 
 
 
Interest and dividend income
$
185,063

 
$
169,208

 
$
478,696

 
$
423,244

Interest expense
36,447

 
40,039

 
118,357

 
115,076

Net interest income
148,616

 
129,169

 
360,339

 
308,168

Provision for loan and lease losses
28,500

 
19,000

 
35,700

 
24,550

Net interest income after provision for loan and lease losses
120,116

 
110,169

 
324,639

 
283,618

Non-interest income
31,542

 
26,098

 
74,285

 
59,533

Non-interest expense
71,790

 
81,815

 
204,222

 
185,670

Income before income tax expense
79,868

 
54,452

 
194,702

 
157,481

Income tax expense
23,811

 
15,631

 
56,564

 
42,984

Net income
$
56,057

 
$
38,821

 
$
138,138

 
$
114,497

Net income attributable to common stock
$
55,980

 
$
38,744

 
$
137,906

 
$
114,265

 
 
 
 
 
 
 
 
Per Common Share Data:
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
Basic
$
0.92

 
$
0.63

 
$
2.25

 
$
1.84

Diluted
$
0.91

 
$
0.63

 
$
2.23

 
$
1.83

Adjusted earnings (Non-GAAP)
$
0.94

 
$
0.84

 
$
2.31

 
$
2.07

Book value
$
19.77

 
$
16.88

 
$
19.77

 
$
16.88

Tangible book value (Non-GAAP)
$
17.46

 
$
14.49

 
$
17.46

 
$
14.49

 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
60,967,892

 
61,259,419

 
61,176,715

 
62,130,598

Diluted
61,523,513

 
61,589,662

 
61,811,845

 
62,597,283

Common shares outstanding at end of period
59,653,192

 
61,285,375

 
59,653,192

 
61,285,375

Common shares issued at end of period
67,084,817

 
66,253,298

 
67,084,817

 
66,253,298

 
 
 
 
 
 
 
 
Performance Ratios and Other Data:
 
 
 
 
 
 
 
Loan and lease originations for investment
$
2,596,420

 
$
2,227,387

 
$
5,493,338

 
$
5,432,902

Loan originations for sale
$
292,226

 
$
287,869

 
$
1,286,230

 
$
1,201,001

Loan and lease purchases
$

 
$

 
$

 
$
11,009

Return on average assets
1.79
%
 
1.42
%
 
1.56
%
 
1.52
%
Return on average common stockholders’ equity
18.65
%
 
15.34
%
 
15.99
%
 
15.32
%
Interest rate spread1
4.33
%
 
4.39
%
 
3.70
%
 
3.79
%
Net interest margin2
4.90
%
 
4.84
%
 
4.20
%
 
4.19
%
Net interest margin2 – Banking Business Segment only
4.97
%
 
4.94
%
 
4.28
%
 
4.24
%
Efficiency ratio3
39.85
%
 
52.69
%
 
46.99
%
 
50.49
%
Efficiency ratio3 – Banking Business Segment only
33.21
%
 
35.26
%
 
39.40
%
 
39.30
%
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
Net annualized charge-offs to average loans and leases
0.03
%
 
0.04
%
 
0.08
%
 
0.03
%
Non-performing loans and leases to total loans and leases
0.55
%
 
0.49
%
 
0.55
%
 
0.49
%
Non-performing assets to total assets
0.54
%
 
0.48
%
 
0.54
%
 
0.48
%
Allowance for loan and lease losses to total loans and leases held for investment at end of period
0.83
%
 
0.78
%
 
0.83
%
 
0.78
%
Allowance for loan and lease losses to non-performing loans and leases
150.33
%
 
161.11
%
 
150.33
%
 
161.11
%

1. 
Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.
2. 
Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.
3 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.


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