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LegacyTexas Financial Group, Inc. Reports Record Third Quarter 2016 Earnings of $27.2 million

Dienstag, 18.10.2016 22:20 von

PR Newswire

PLANO, Texas, Oct. 18, 2016 /PRNewswire/ -- LegacyTexas Financial Group, Inc. (Nasdaq: LTXB) (the "Company"), the holding company for LegacyTexas Bank (the "Bank"), today announced net income of $27.2 million for the third quarter of 2016, an increase of $4.0 million from the second quarter of 2016, and $9.3 million from the third quarter of 2015.

LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 46 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, visit  www.LegacyTexasFinancialGroup.com . (PRNewsFoto/)

"We are pleased to report such great results," said President and CEO Kevin Hanigan.  "In addition to record earnings of $27.2 million, we also had a record core return on assets of 1.38% and an all-time best core efficiency ratio of 46%. Deposit growth of over $500 million is also a record.  Our talented team is doing a fantastic job of taking care of our customers, growing our franchise and achieving great results for our shareholders."

Third Quarter 2016 Performance Highlights

  • Company assets totaled $8.44 billion, which generated basic earnings per share for the third quarter of 2016 of $0.59 on a GAAP basis and $0.61 on a core (non-GAAP) basis.  
  • Return on average assets for the quarter ended September 30, 2016 was 1.33%, compared to 1.20% for the second quarter of 2016, while core (non-GAAP) return on average assets was 1.38% for the quarter ended September 30, 2016, compared to 1.20% for the second quarter of 2016.
  • Return on average equity for the quarter ended September 30, 2016 was 12.66%, compared to 11.11% for the second quarter of 2016, while core (non-GAAP) return on average equity was 13.08% for the quarter ended September 30, 2016, compared to 11.15% for the second quarter of 2016.
  • Core (non-GAAP) efficiency ratio improved to 45.95% for the quarter ended September 30, 2016, compared to 48.17% for the second quarter of 2016.
  • Gross loans held for investment at September 30, 2016, excluding Warehouse Purchase Program loans, grew $64.2 million, or 1.1%, from June 30, 2016, with $43.1 million of growth in commercial real estate and commercial and industrial loans.
  • Total deposits at September 30, 2016 grew $505.4 million, or 9.0%, from June 30, 2016, with $192.9 million of growth in savings and money market deposits, $140.2 million of growth in non-interest-bearing demand deposits, and $134.7 million of growth in time deposits.

 

Financial Highlights



At or For the Quarters Ended

(unaudited)

September 2016


June 2016


September 2015


(Dollars in thousands, except per share amounts)

Net interest income

$

73,480



$

69,354



$

61,188


Provision for credit losses

3,467



6,800



7,515


Non-interest income

11,277



13,722



11,851


Non-interest expense

39,674



39,613



37,827


Income tax expense

14,399



13,446



9,802


Net income

$

27,217



$

23,217



$

17,895








Basic earnings per common share

$

0.59



$

0.50



$

0.39


Basic core (non-GAAP) earnings per common share1

$

0.61



$

0.50



$

0.39


Weighted average common shares outstanding - basic

46,227,734



46,135,999



45,862,840


Estimated Tier 1 common risk-based capital ratio2

8.91

%


9.28

%


9.97

%

Total equity to total assets

10.27

%


10.47

%


11.52

%

Tangible common equity to tangible assets - Non-GAAP1

8.32

%


8.43

%


9.12

%



1  

See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

2  

Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.

 

Core (non-GAAP) net income (which is net income adjusted for the impact of one-time gains and losses on assets and security sales, the net gain on the sale of the Company's insurance subsidiary operations, merger and acquisition costs and certain other items) totaled $28.1 million for the quarter ended September 30, 2016, up $4.8 million from the second quarter of 2016 and up $10.3 million from the third quarter of 2015.  Basic earnings per share for the quarter ended September 30, 2016 was $0.59, an increase of $0.09 from the second quarter of 2016 and an increase of $0.20 from the third quarter of 2015.  Basic core earnings per share for the third quarter of 2016 was $0.61, up $0.11 from the second quarter of 2016 and up $0.22 from the third quarter of 2015.  The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

 

Net Interest Income and Net Interest Margin



For the Quarters Ended

(unaudited)

September 2016


June 2016


September 2015


(Dollars in thousands)

Interest income:






Loans held for investment, excluding Warehouse Purchase Program loans

$

69,543



$

65,159



$

55,778


Warehouse Purchase Program loans

9,266



8,042



7,073


Loans held for sale

157



175



174


Securities

3,482



3,568



3,363


Interest-earning deposit accounts

463



392



137


Total interest income

$

82,911



$

77,336



$

66,525


Net interest income

$

73,480



$

69,354



$

61,188


Net interest margin

3.80

%


3.79

%


4.00

%

Selected average balances:






Total earning assets

$

7,741,338



$

7,310,579



$

6,117,873


Total loans held for investment

6,742,006



6,375,951



5,291,291


Total securities

637,294



623,148



648,241


Total deposits

5,892,348



5,314,821



4,683,346


Total borrowings

1,333,438



1,508,787



984,708


Total non-interest-bearing demand deposits

1,283,434



1,194,118



1,108,928


Total interest-bearing liabilities

5,942,352



5,629,490



4,559,126


 

Net interest income for the quarter ended September 30, 2016 was $73.5 million, a $4.1 million increase from the second quarter of 2016 and a $12.3 million increase from the third quarter of 2015.  The $4.1 million increase from the linked quarter was primarily due to an increase in interest income on loans, which was driven by increased volume in all loan categories with the exception of other consumer loans and mortgage loans held for sale.  The average balance of Warehouse Purchase Program loans increased by $144.7 million to $1.13 billion from the second quarter of 2016, resulting in a $1.2 million increase in interest income.  The average balance of commercial real estate loans increased by $131.9 million to $2.55 billion from the second quarter of 2016, resulting in a $2.8 million increase in interest income.  The average balance of consumer real estate and construction and land loans increased by $53.0 million and $24.0 million, respectively, compared to the second quarter of 2016, leading to increases in interest income of $672,000 and $245,000, respectively.  The average balance of commercial and industrial loans increased by $15.4 million to $1.71 billion from the second quarter of 2016, resulting in a $732,000 increase in interest income. 

Interest income on loans for the third quarter of 2016 included $1.2 million in accretion of purchase accounting fair value adjustments on acquired loans, which includes $545,000 on acquired commercial real estate loans, $181,000 on acquired commercial and industrial loans, $35,000 on acquired construction and land loans and $471,000 on acquired consumer loans.  Accretion of purchase accounting fair value adjustments on acquired loans contributed eight basis points, four basis points and 14 basis points to the average yields on commercial real estate, commercial and industrial and consumer real estate loans, respectively, for the third quarter of 2016, compared to six basis points, four basis points and 22 basis points, respectively, for the second quarter of 2016. 

The $12.3 million increase in net interest income compared to the third quarter of 2015 was primarily due to a $15.9 million increase in interest income on loans, which was driven by increased volume in all loan categories with the exception of other consumer loans.  The average balance of commercial real estate loans increased by $579.2 million from the third quarter of 2015, resulting in a $7.1 million increase in interest income.  The average balance of commercial and industrial loans increased by $370.2 million from the third quarter of 2015, resulting in a $4.2 million increase in interest income.  The average balance of Warehouse Purchase Program and consumer real estate loans increased by $286.2 million and $200.8 million, respectively, compared to the third quarter of 2015, leading to increases in interest income of $2.2 million and $2.1 million, respectively.

Interest expense for the quarter ended September 30, 2016 increased by $1.4 million compared to the linked quarter, which was primarily due to increased volume in all deposit products compared to the second quarter of 2016.  The average balance of savings and money market accounts increased by $249.0 million to $2.41 billion from the second quarter of 2016, resulting in a $664,000 increase in interest expense, while the average balance of time deposits increased by $202.5 million to $1.37 billion for the same period, resulting in a $614,000 increase in interest expense. A $175.3 million decrease in the average balance of borrowings from the second quarter of 2016 was more than offset by a 16 basis point increase in the average rate, resulting in a $115,000 increase in interest expense on borrowed funds.

Compared to the third quarter of 2015, interest expense for the quarter ended September 30, 2016 increased by $4.1 million, primarily due to increased volume in all deposit products, including a $478.9 million increase in the average balance of savings and money market deposits and a $470.2 million increase in the average balance of time deposits, which increased interest expense by $1.1 million and $1.1 million, respectively.  Interest expense on borrowings increased by $1.7 million compared to the third quarter of 2015, primarily due to the issuance of $75.0 million of fixed-to-floating rate subordinated notes by the Company in November 2015, as well as a 31 basis point increase in the average rate paid over the period. 

The net interest margin for the third quarter of 2016 was 3.80%, a one basis point increase from the second quarter of 2016 and a 20 basis point decrease from the third quarter of 2015.  Accretion of interest resulting from the merger with LegacyTexas Group, Inc. on January 1, 2015, as well as the 2012 Highlands acquisition, contributed six basis points to the net interest margin and average yield on earning assets for the quarter ended September 30, 2016, compared to seven basis points for the quarter ended June 30, 2016 and 12 basis points for the quarter ended September 30, 2015.  The average yield on earning assets for the third quarter of 2016 was 4.28%, a five basis point increase from the second quarter of 2016 and a seven basis point decrease from the third quarter of 2015.  The cost of deposits for the third quarter of 2016 was 0.39%, up six basis points from the linked quarter and up ten basis points from the third quarter of 2015.

Non-interest Income

Non-interest income for the third quarter of 2016 was $11.3 million, a $2.4 million decrease from the second quarter of 2016 and a $574,000 decrease from the third quarter of 2015.  Core non-interest income for the third quarter of 2016, which excludes one-time gains and losses on assets and security sales, the net gain on the sale of the Company's insurance subsidiary operations and certain other items, was $12.7 million, down $48,000 from the second quarter of 2016 and up $990,000 from the third quarter of 2015.  Gain (loss) on sale and disposition of assets for the third quarter of 2016 included a loss of $1.5 million on the sale of the Company's Federal Housing Administration ("FHA") loan portfolio, compared to a gain of $1.2 million on the sale of the Company's insurance subsidiary operations recorded in the second quarter of 2016.  Service charges and other fees increased by $743,000 from the second quarter of 2016, which included an $839,000 increase in commercial loan fee income (consisting of syndication, arrangement, non-usage and pre-payment fees) and a $213,000 increase in Warehouse Purchase Program fee income, which were partially offset by a $341,000 decrease in title premiums.  The $577,000 decrease in other non-interest income compared to the linked quarter was primarily due to $642,000 in income recorded in the second quarter of 2016 from insurance activities, which was not repeated in the third quarter of 2016 due to the above-mentioned sale of the Company's insurance subsidiary operations.  Also, other non-interest income for the second quarter of 2016 included $365,000 in swap fee income recorded on interest rate derivative positions with our customers, with only $85,000 in comparable income recognized in the third quarter of 2016.  Other non-interest income for the third quarter of 2016 included a $105,000 net increase in the value of investments in community development-oriented private equity funds used for Community Reinvestment Act purposes (the "CRA Funds"), compared to a $237,000 net decrease in the CRA Funds recorded in the second quarter of 2016.

The $574,000 decrease in non-interest income from the third quarter of 2015 was primarily due to the above-mentioned loss of $1.5 million on the sale of the Company's FHA portfolio recorded in the third quarter of 2016, as well as $695,000 in income recorded in the third quarter of 2015 from insurance activities, which was not repeated in the third quarter of 2016 due to the above-mentioned sale of the Company's insurance subsidiary operations.  Other non-interest income for the third quarter of 2016 included a $105,000 net increase in the CRA Funds, compared to a $202,000 net increase recorded in the third quarter of 2015.  Service charges and other fees increased by $1.5 million compared to the third quarter of 2015, which included a $746,000 increase in commercial loan fee income (consisting of syndication, arrangement, non-usage and pre-payment fees), a $311,000 increase in Warehouse Purchase Program fee income, and a $170,000 increase in title premiums.  The Company recognized $2.4 million in net gains on the sale of mortgage loans held for sale during the third quarter of 2016, which includes the gain recognized on $60.2 million of one-to four-family mortgage loans that were sold or committed for sale during the third quarter of 2016, fair value changes on mortgage derivatives and mortgage fees collected, compared to $1.9 million in comparable net gains recorded during the third quarter of 2015 on $59.5 million of one-to four-family mortgage loans sold.

Non-interest Expenses

Non-interest expense for the quarter ended September 30, 2016 was $39.7 million, a $61,000 increase from the second quarter of 2016 and a $1.8 million increase from the third quarter of 2015.  Salaries and employee benefits expense increased by $1.1 million from the second quarter of 2016, primarily due to a $648,000 increase in share-based compensation expense (including expense recorded on the Company's ESOP) related to the increase in the Company's average stock price and new stock awards granted during the third quarter of 2016, as well as a $497,000 increase in health care costs, a $266,000 increase in salary costs, and a $420,000 decrease in deferred salary costs related to loan originations that will be accounted for over the lives of the related loans.  These linked-quarter increases in salaries and employee benefits expense were partially offset by a reduction of $469,000 in salaries and benefits attributable to the Company's insurance subsidiary operations, which was sold in the second quarter of 2016, and a $213,000 reduction in performance-based incentive accruals and commissions related to lower loan production during the third quarter of 2016.  Other non-interest expense for the third quarter of 2016 included a $616,000 reduction in debit card fraud losses compared to the second quarter of 2016.  Data processing expense increased by $325,000 on a linked-quarter basis, primarily due to increased expenses for debit card issuance and processing services, as the Company has converted all debit cards to the Europay, Mastercard and Visa ("EMV") chip technology to reduce future fraud.

The $1.8 million increase in non-interest expense from the third quarter of 2015 was primarily due to a $1.2 million increase in data processing expense compared to the third quarter of 2015, which included increased expenses for debit card issuance and processing services, as the Company has converted all debit cards to the EMV chip technology to reduce future fraud.  Other non-interest expense increased $459,000 primarily due to an increase in debit card fraud losses in the 2016 period. Salaries and employee benefits expense for the third quarter of 2016 increased by $285,000 compared to the third quarter of 2015, primarily due to an increase in the number of employees in the 2016 period, which increased salary expense by $1.4 million, and increased loan production in the 2016 period, which led to a $976,000 increase in performance-based incentive accruals and commissions. These increases in salaries and employee benefits expense in the 2016 period were partially offset by a $1.3 million increase in deferred salary costs related to loan originations that will be accounted for over the lives of the related loans, a reduction of $467,000 in salaries and benefits attributable to the Company's insurance subsidiary operations, which was sold in the second quarter of 2016, and a $282,000 reduction in severance payments and sign-on bonuses compared to the third quarter of 2015.   

Financial Condition – Loans

Gross loans held for investment at September 30, 2016, excluding Warehouse Purchase Program loans, grew $64.2 million from June 30, 2016, which included growth in commercial real estate, commercial and industrial and construction and land loans.  Commercial real estate and commercial and industrial loans at September 30, 2016 increased by $13.0 million and $30.1 million, respectively, from June 30, 2016, and construction and land loans increased by $25.8 million for the same period.  These linked-quarter increases were partially offset by a $397,000 decline in consumer real estate loans, which includes the third quarter 2016 sale of the Company's $34.4 million FHA loan portfolio, which was sold to reduce future loan servicing and compliance costs. 

Compared to September 30, 2015, gross loans held for investment at September 30, 2016, excluding Warehouse Purchase Program loans, grew $1.07 billion, which included growth in all loan portfolios with the exception of a $17.9 million decline in other consumer loans.  On a year over year basis, commercial real estate and commercial and industrial loans increased by $497.8 million and $375.3 million, respectively.  Consumer real estate and construction and land loans increased by $165.9 million and $47.3 million, respectively, from September 30, 2015. 

Compared to June 30, 2016 and September 30, 2015, Warehouse Purchase Program loans increased by $365.4 million and $385.4 million, respectively, at September 30, 2016. 

Reserve-based energy loans, which are secured by deeds of trust on properties containing proven oil and natural gas reserves, totaled $433.5 million at September 30, 2016, down $55.6 million from $489.1 million at June 30, 2016 and up $2.1 million from $431.4 million at September 30, 2015.  In addition to reserve-based energy loans, the Company has loans categorized as "Midstream and Other," which are typically related to the transmission of oil and natural gas and would only be indirectly impacted from declining commodity prices.  At September 30, 2016, "Midstream and Other" loans had a total outstanding balance of $53.9 million, down $889,000 from $54.8 million at June 30, 2016 and up $22.8 million from $31.1 million at September 30, 2015.

Financial Condition - Deposits

Total deposits at September 30, 2016 increased by $505.4 million from June 30, 2016, with all deposit categories growing on a linked-quarter basis.  Savings and money market and non-interest-bearing demand deposits increased by $192.9 million and $140.2 million, respectively, on a linked-quarter basis, while time and interest-bearing demand deposits increased by $134.7 million and $37.5 million, respectively, from June 30, 2016.

Compared to September 30, 2015, total deposits increased by $1.36 billion, which includes growth in all deposit categories.  On a year over year basis, time deposits and savings and money market deposits increased by $560.7 million and $459.7 million, respectively, while non-interest-bearing demand and interest-bearing demand deposits increased by $239.6 million and $98.0 million, respectively, from September 30, 2015.

 

Credit Quality



At or For the Quarters Ended

(unaudited)

September 2016


June 2016


September 2015


(Dollars in thousands)

Net charge-offs

$

7,176



$

90



$

2,000


Net charge-offs/Average loans held for investment, excluding Warehouse Purchase Program loans

0.51

%


0.01

%


0.18

%

Net charge-offs/Average loans held for investment

0.43



0.01



0.15


Provision for credit losses

$

3,467



$

6,800



$

7,515


Non-performing loans ("NPLs")

40,865



42,851



66,413


NPLs/Total loans held for investment, excluding Warehouse Purchase Program loans

0.71

%


0.75

%


1.42

%

NPLs/Total loans held for investment

0.58



0.64



1.18


Non-performing assets ("NPAs")

$

54,325



$

56,219



$

71,053


NPAs to total assets

0.64

%


0.70

%


1.03

%

NPAs/Loans held for investment and foreclosed assets, excluding Warehouse Purchase Program loans

0.94



0.99



1.51


NPAs/Loans held for investment and foreclosed assets

0.76



0.84



1.26


Allowance for loan losses

$

57,318



$

62,194



$

36,382


Allowance for loan losses/Total loans held for investment, excluding Warehouse Purchase Program loans

1.00

%


1.09

%


0.78

%

Allowance for loan losses/Total loans held for investment

0.81



0.93



0.64


Allowance for loan losses/Total loans held for investment, excluding acquired loans & Warehouse Purchase Program loans1

1.12



1.26



1.00


Allowance for loan losses/NPLs

140.26



145.14



54.78




Excludes loans acquired in the Highlands and LegacyTexas transactions, which were initially recorded at fair value.

The Company recorded a provision for credit losses of $3.5 million for the quarter ended September 30, 2016, a decrease of $3.3 million from the quarter ended June 30, 2016 and a decrease of $4.0 million from the quarter ended September 30, 2015.  The decrease in provision expense was primarily due to a lower amount of commercial loans originated during the third quarter of 2016, particularly in the energy portfolio, which require a higher allocation of allowance for loan losses when added to the Company's balance sheet.  Additionally, provision expense for the second quarter of 2016 included a $3.4 million increase in the specific reserve set aside for a $12.0 million reserve-based energy loan that was resolved through bankruptcy proceedings in the third quarter of 2016, resulting in a $6.9 million charge-off.  Due to the expansion of our lending business, as well as recent increased diversification of the types of off-balance sheet commitments offered by the Company, management established an allowance for credit losses on off-balance sheet lending-related commitments during the third quarter of 2016. $1.2 million of the provision for credit loss for the quarter ended September 30, 2016 funds this allowance.  This allowance for off-balance sheet credit loss is included in "accrued expenses and other liabilities" on the consolidated balance sheets.

The below table shows criticized energy loans at September 30, 2016, June 30, 2016 and September 30, 2015. 

 


September 30, 2016


June 30,
 2016


Linked-Quarter

 Change


September 30, 2015


Year-over-Year

 Change


(Dollars in thousands)

Special Mention (all performing)

$

125,807



$

106,060



$

19,747



$

30,457



$

95,350


Substandard (performing)

76,786



81,482



(4,696)



8,108



68,678


Substandard (non-performing)

22,033



26,576



(4,543)



36,217



(14,184)



$

224,626



$

214,118



$

10,508



$

74,782



$

149,844


 

The $4.5 million decrease in substandard non-performing energy loans from June 30, 2016 was due to the above-mentioned $12.0 million reserve-based energy loan that was resolved through bankruptcy proceedings. This decrease was partially offset by a $7.5 million reserve-based energy relationship that was downgraded to substandard non-performing during the third quarter of 2016 due to declining collateral values and resulting diminished operating performance following a review as part of the Shared National Credit ("SNC") program, which is a regulatory review conducted by the Federal Reserve Bank, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency of large syndicated loans of at least $20 million that are shared by three or more supervised institutions.  The Company does not have any specific reserve set aside for this relationship and does not currently anticipate a loss. 

The increase in substandard performing energy loans on a year-over-year basis, as well as the increase in special mention performing energy loans on a linked-quarter and year-over-year basis, resulted from collateral value declines and deteriorating financial condition due to commodity price declines.  At September 30, 2016, no special mention or substandard performing energy loans were considered to be impaired, and the Company did not have any specific loss reserves set aside for these loans.  The Company continues to take action to improve the risk profile of the criticized energy loans by instituting monthly commitment reductions, obtaining additional collateral, obtaining additional guarantor support and/or requiring additional equity injections or asset sales. 

The allowance for loan losses allocated to energy loans at September 30, 2016 totaled $16.1 million, down $5.8 million from $21.9 million at June 30, 2016 and up $11.2 million from $4.9 million at September 30, 2015.  The linked-quarter decline in energy reserves was due to a lower amount of energy loans originated during the third quarter of 2016.  In addition to $217,000 in specific reserves on non-performing energy relationships, these reserve amounts continue to reflect elevated qualitative factors compared to the same period in 2015. Since the inception of our Energy Finance Group, we have maintained a number of risk mitigation techniques, including sound underwriting (reasonable advance rates based on number and diversification of wells), sound policy (requiring hedges on production sales) and conservative collateral valuations (frequent borrowing base determinations at prices below NYMEX posted rates).  All borrowing base valuations are performed by experienced and nationally recognized third party firms intimately familiar with the properties and their production history.  The Company believes that the level of loan loss reserves for energy loans as of September 30, 2016 is sufficient to cover estimated credit losses in the portfolio based on currently available information; however, future sustained declines in oil pricing could lead to further risk rating downgrades, additional loan loss reserves or losses. 

Subsequent Events

The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended September 30, 2016 on Form 10-Q.  As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of September 30, 2016 and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will host an investor conference call to review the results on Wednesday, October 19, 2016 at 8 a.m. Central Time.  Participants may pre-register for the call by visiting http://dpregister.com/10094145 and will receive a unique PIN that can be used when dialing in for the call.  This will allow attendees to enter the call immediately.  Alternatively, participants may call (toll-free) 877-513-4119 at least five minutes prior to the call to be placed into the call by an operator.  International participants are asked to call 412-902-4148 and participants in Canada are asked to call (toll-free) 855-669-9657.  The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.LegacyTexasFinancialGroup.com.  An audio replay will be available one hour after the conclusion of the call at 877-344-7529, Conference #10094145.   This replay, as well as the webcast, will be available until November 19, 2016.

About LegacyTexas Financial Group, Inc.

LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 46 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, please visit www.LegacyTexasFinancialGroup.com or www.LegacyTexas.com.

This document and other filings by LegacyTexas Financial Group, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), as well as press releases or other public or stockholder communications released by the Company, may contain forward-looking statements, including, but not limited to, (i) statements regarding the financial condition, results of operations and business of the Company, (ii) statements about the Company's plans, objectives, expectations and intentions and other statements that are not historical facts and (iii) other statements identified by the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions that are intended to identify "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on current beliefs and expectations of the Company's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the expected cost savings, synergies and other financial benefits from acquisition or disposition transactions might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters might be greater than expected; changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; fluctuations in the price of oil, natural gas and other commodities; competition; changes in management's business strategies and other factors set forth in the Company's filings with the SEC.

The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.  When considering forward-looking statements, you should keep in mind these risks and uncertainties. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. You should refer to our periodic and current reports filed with the SEC for specific risks that could cause actual results to be significantly different from those expressed or implied by any forward-looking statements.

 

LegacyTexas Financial Group, Inc. Consolidated Balance Sheets



September 30,
2016


June 30,
 2016


March 31,
 2016


December 31,
 2015


September 30,
2015


(Dollars in thousands)

ASSETS

(unaudited)


(unaudited)


(unaudited)




(unaudited)

Cash and due from financial institutions

$

63,598



$

59,217



$

55,348



$

53,847



$

47,720


Short-term interest-bearing deposits in other financial institutions

214,289



363,407



261,423



561,792



193,994


Total cash and cash equivalents

277,887



422,624



316,771



615,639



241,714


Securities available for sale, at fair value

433,603



325,042



320,866



311,708



318,219


Securities held to maturity

220,919



224,452



228,576



240,433



249,838


Total securities

654,522



549,494



549,442



552,141



568,057


Loans held for sale

23,184



20,752



17,615



22,535



22,802


Loans held for investment:










Loans held for investment - Warehouse Purchase Program

1,345,818



980,390



1,028,561



1,043,719



960,377


Loans held for investment

5,757,224



5,693,047



5,269,312



5,066,507



4,688,826


Gross loans

7,126,226



6,694,189



6,315,488



6,132,761



5,672,005


Less: allowance for loan losses and deferred fees on loans held for investment

(54,557)



(59,795)



(55,001)



(48,953)



(39,611)


Net loans

7,071,669



6,634,394



6,260,487



6,083,808



5,632,394


FHLB stock and other restricted securities, at cost

54,850



62,247



54,648



63,075



63,891


Bank-owned life insurance

56,169



55,853



55,535



55,231



54,920


Premises and equipment, net

72,325



71,232



71,271



77,637



79,153


Goodwill

178,559



178,559



180,776



180,776



180,632


Other assets

74,029



82,602



73,196



63,633



58,082


Total assets

$

8,440,010



$

8,057,005



$

7,562,126



$

7,691,940



$

6,878,843












LIABILITIES AND SHAREHOLDERS' EQUITY







Non-interest-bearing demand

$

1,375,883



$

1,235,731



$

1,174,816



$

1,170,272



$

1,136,255


Interest-bearing demand

848,564



811,015



782,161



819,350



750,551


Savings and money market

2,442,434



2,249,490



2,225,611



2,209,698



1,982,729


Time

1,461,194



1,326,446



1,120,261



1,027,391



900,515


Total deposits

6,128,075



5,622,682



5,302,849



5,226,711



4,770,050


FHLB advances

1,134,318



1,333,337



1,201,632



1,439,904



1,152,916


Repurchase agreements

75,138



68,049



69,079



83,269



71,643


Subordinated debt

134,083



85,231



85,104



84,992



11,522


Other borrowings



24,894








Accrued expenses and other liabilities

101,551



79,508



80,410



52,988



80,075


Total liabilities

7,573,165



7,213,701



6,739,074



6,887,864



6,086,206


Shareholders' equity










Common stock

478



476



476



476



476


Additional paid-in capital

583,800



580,386



578,050



576,753



573,929


Retained earnings

292,510



272,454



255,908



240,496



230,720


Accumulated other comprehensive income (loss), net

2,639



2,918



1,841



(133)



1,395


Unearned Employee Stock Ownership Plan (ESOP) shares

(12,582)



(12,930)



(13,223)



(13,516)



(13,883)


Total shareholders' equity

866,845



843,304



823,052



804,076



792,637


Total liabilities and shareholders' equity

$

8,440,010



$

8,057,005



$

7,562,126



$

7,691,940



$

6,878,843


 

LegacyTexas Financial Group, Inc.

Consolidated Quarterly Statements of Income (unaudited)



For the Quarters Ended


Third Quarter 2016 Compared to:


Sep 30,
2016


Jun 30,
2016


Mar 31,
2016


Dec 31,
2015


Sep 30,
2015


Second Quarter

 2016


Third Quarter

2015

Interest and dividend income

 

(Dollars in thousands)

Loans, including fees

$

78,966



$

73,376



$

68,806



$

66,054



$

63,025



$

5,590


7.6

%


$

15,941


25.3

%

Taxable securities

2,314



2,359



2,312



2,264



2,292



(45)


(1.9)



22


1.0


Nontaxable securities

763



759



774



780



773



4


0.5



(10)


(1.3)


Interest-bearing deposits in other financial institutions

463



392



330



210



137



71


18.1



326


238.0


FHLB and Federal Reserve Bank stock and other

405



450



386



274



298



(45)


(10.0)



107


35.9



82,911



77,336



72,608



69,582



66,525



5,575


7.2



16,386


24.6


Interest expense
















Deposits

5,756



4,422



4,122



3,569



3,382



1,334


30.2



2,374


70.2


FHLB advances

1,865



2,103



1,673



1,466



1,606



(238)


(11.3)



259


16.1


Repurchase agreement and other borrowings

1,810



1,457



1,462



805



349



353


24.2



1,461


418.6



9,431



7,982



7,257



5,840



5,337



1,449


18.2



4,094


76.7


Net interest income

73,480



69,354



65,351



63,742



61,188



4,126


5.9



12,292


20.1


Provision for credit losses

3,467



6,800



8,800



11,200



7,515



(3,333)


(49.0)



(4,048)


(53.9)


Net interest income after provision for credit losses

70,013



62,554



56,551



52,542



53,673



7,459


11.9



16,340


30.4


Non-interest income
















Service charges and other fees

9,670



8,927



8,181



8,041



8,195



743


8.3



1,475


18.0


Net gain on sale of mortgage loans held for sale

2,383



2,250



1,580



1,899



1,944



133


5.9



439


22.6


Bank-owned life insurance income

441



441



426



432



424






17


4.0


Gain (loss) on sale of available for sale securities

(3)



65





17



(25)



(68)


N/M



22


N/M


Gain (loss) on sale and disposition of assets

(1,490)



1,186



4,072



188



228



(2,676)


N/M



(1,718)


N/M


Other

276



853



396



1,016



1,085



(577)


(67.6)



(809)


(74.6)



11,277



13,722



14,655



11,593



11,851



(2,445)


(17.8)



(574)


(4.8)


















Non-interest expense


Salaries and employee benefits

23,918



22,867



22,337



23,374



23,633



1,051


4.6



285


1.2


Advertising

751



1,035



1,036



1,140



645



(284)


(27.4)



106


16.4


Occupancy and equipment

3,822



3,779



3,691



3,592



3,622



43


1.1



200


5.5


Outside professional services

940



1,227



816



1,114



934



(287)


(23.4)



6


0.6


Regulatory assessments

1,169



1,330



1,133



1,266



1,026



(161)


(12.1)



143


13.9


Data processing

3,989



3,664



3,290



3,116



2,830



325


8.9



1,159


41.0


Office operations

2,368



2,541



2,468



2,773



2,879



(173)


(6.8)



(511)


(17.7)


Other

2,717



3,170



2,771



2,668



2,258



(453)


(14.3)



459


20.3



39,674



39,613



37,542



39,043



37,827



61


0.2



1,847


4.9


Income before income tax expense

41,616



36,663



33,664



25,092



27,697



4,953


13.5



13,919


50.3


Income tax expense

14,399



13,446



11,582



8,646



9,802



953


7.1



4,597


46.9


Net income

$

27,217



$

23,217



$

22,082



$

16,446



$

17,895



$

4,000


17.2

%


$

9,322


52.1

%


N/M - Not meaningful

 

LegacyTexas Financial Group, Inc.

Selected Financial Highlights (unaudited)



At or For the Quarters Ended


September 30,
 2016


June 30,
 2016


September 30,
 2015


(Dollars in thousands, except per share amounts)

SHARE DATA:






Weighted average common shares outstanding- basic

46,227,734



46,135,999



45,862,840


Weighted average common shares outstanding- diluted

46,546,532



46,352,141



46,188,461


Shares outstanding at end of period

47,773,160



47,670,440



47,640,193


Income available to common shareholders1

$

27,084



$

23,114



$

17,768


Basic earnings per common share

0.59



0.50



0.39


Basic core (non-GAAP) earnings per common share2

0.61



0.50



0.39


Diluted earnings per common share

0.58



0.50



0.38


Dividends declared per share

0.15



0.14



0.14


Total shareholders' equity

866,845



843,304



792,637


Common shareholders' equity per share (book value per share)

18.15



17.69



16.64


Tangible book value per share- Non-GAAP2

14.39



13.93



12.82


Market value per share for the quarter:






High

31.90



28.27



31.32


Low

25.81



17.94



26.11


Close

31.63



26.91



30.48


KEY RATIOS:






Return on average common shareholders' equity

12.66

%


11.11

%


9.11

%

Core (non-GAAP) return on average common shareholders' equity2

13.08



11.15



9.05


Return on average assets

1.33



1.20



1.10


Core (non-GAAP) return on average assets2

1.38



1.20



1.09


Efficiency ratio (GAAP basis)

46.81



47.68



51.79


Core (non-GAAP) efficiency ratio2

45.95



48.17



51.89


Estimated Tier 1 common equity risk-based capital ratio3

8.91



9.28



9.97


Estimated total risk-based capital ratio3

11.41



11.35



10.75


Estimated Tier 1 risk-based capital ratio3

9.06



9.67



10.16


Estimated Tier 1 leverage ratio3

8.72



8.91



9.79


Total equity to total assets

10.27



10.47



11.52


Tangible equity to tangible assets- Non-GAAP2

8.32



8.43



9.12


Number of employees- full-time equivalent

873



850



831
















1  

Net of distributed and undistributed earnings to participating securities.

2

See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

3

Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.

 

LegacyTexas Financial Group, Inc.

Selected Loan Data (unaudited)




At the Quarter Ended  


September 30,
2016


June 30,
2016


March 31, 
2016


December 31, 
2015


September 30,
2015

Loans held for investment:

(Dollars in thousands)

Commercial real estate

$

2,533,404



$

2,520,431



$

2,324,338



$

2,177,543



$

2,035,631


Warehouse Purchase Program

1,345,818



980,390



1,028,561



1,043,719



960,377


Commercial and industrial

1,812,558



1,782,463



1,640,042



1,612,669



1,437,241


Construction and land

307,734



281,936



267,543



269,708



260,433


Consumer real estate

1,046,397



1,046,794



972,115



936,757



880,532


Other consumer

57,131



61,423



65,274



69,830



74,989


Gross loans held for investment

$

7,103,042



$

6,673,437



$

6,297,873



$

6,110,226



$

5,649,203


Non-performing assets:










Commercial real estate

$

5,336



$

1,183



$

1,307



$

11,418



$

13,717


Commercial and industrial

28,282



31,362



30,105



16,877



41,538


Construction and land

27



27



31



33



39


Consumer real estate

7,051



10,005



11,948



9,781



10,894


Other consumer

169



274



105



107



225


Total non-performing loans

40,865



42,851



43,496



38,216



66,413


Foreclosed assets

13,460



13,368



13,370



6,692



4,640


Total non-performing assets

$

54,325



$

56,219



$

56,866



$

44,908



$

71,053


Total non-performing assets to total assets

0.64

%


0.70

%


0.75

%


0.58

%


1.03

%

Total non-performing loans to total loans held for investment, excluding Warehouse Purchase Program loans

0.71

%


0.75

%


0.83

%


0.75

%


1.42

%

Total non-performing loans to total loans held for investment

0.58

%


0.64

%


0.69

%


0.63

%


1.18

%

Allowance for loan losses to non-performing loans

140.26

%


145.14

%


127.56

%


123.23

%


54.78

%

Allowance for loan losses to total loans held for investment, excluding Warehouse Purchase Program loans

1.00

%


1.09

%


1.05

%


0.93

%


0.78

%

Allowance for loan losses to total loans held for investment

0.81

%


0.93

%


0.88

%


0.77

%


0.64

%

Allowance for loan losses to total loans held for investment, excluding acquired loans and Warehouse Purchase Program loans1

1.12

%


1.26

%


1.25

%


1.14

%


1.00

%

Troubled debt restructured loans ("TDRs"):


Performing TDRs:










Commercial real estate

$

156



$

158



$

160



$

161



$

163


Commercial and industrial



7



15



30



266


Consumer real estate

271



361



364



368



134


Other consumer

35



39



42



46



1


Total performing TDRs

$

462



$

565



$

581



$

605



$

564


Non-performing TDRs:2










Commercial real estate

$

813



$

820



$

938



$

946



$

3,233


Commercial and industrial

8,700



8,726



8,923



1,793



1,760


Consumer real estate

1,725



3,603



3,625



3,393



3,808


Other consumer

50



51



65



75



160


Total non-performing TDRs

$

11,288



$

13,200



$

13,551



$

6,207



$

8,961


Allowance for loan losses:










Balance at beginning of period

$

62,194



$

55,484



$

47,093



$

36,382



$

30,867


Provision expense for loans

2,300



6,800



8,800



11,200



7,515


Charge-offs

(7,566)



(345)



(581)



(722)



(2,124)


Recoveries

390



255



172



233



124


Balance at end of period

$

57,318



$

62,194



$

55,484



$

47,093



$

36,382


Net charge-offs (recoveries):










Commercial real estate

$

72



$

(3)



$

(6)



$

71



$

6


Commercial and industrial

6,989



(96)



347



317



1,626


Consumer real estate

(40)



61



(43)



(19)



100


Other consumer

155



128



111



120



268


Total net charge-offs

$

7,176



$

90



$

409



$

489



$

2,000


Allowance for off-balance sheet lending-related commitments










Provision expense for credit losses

$

1,167



$



$



$



$



Excludes loans acquired in the Highlands and LegacyTexas acquisitions, which were initially recorded at fair value.

2 Non-performing TDRs are included in the non-performing assets reported above.

 

LegacyTexas Financial Group, Inc.
Average Balances and Yields/Rates (unaudited)



For the Quarters Ended


September 30,
2016


June 30,
 2016


March 31,
 2016


December 31,
 2015


September 30,
2015

Loans:

(Dollars in thousands)

Commercial real estate

$

2,548,202



$

2,416,288



$

2,228,682



$

2,102,708



$

1,969,031


Warehouse Purchase Program

1,131,959



987,225



796,832



777,927



845,787


Commercial and industrial

1,710,387



1,695,037



1,612,125



1,502,875



1,340,177


Construction and land

290,930



266,968



269,691



277,597



239,567


Consumer real estate

1,055,801



1,002,848



949,568



895,336



855,015


Other consumer

59,212



63,525



67,055



72,981



77,404


Less: deferred fees and allowance for loan loss

(54,485)



(55,940)



(49,178)



(40,987)



(35,690)


Total loans held for investment

6,742,006



6,375,951



5,874,775



5,588,437



5,291,291


Loans held for sale

18,132



19,726



19,588



18,560



17,651


Securities

637,294



623,148



599,680



631,916



648,241


Overnight deposits

343,906



291,754



238,576



230,598



160,690


Total interest-earning assets

$

7,741,338



$

7,310,579



$

6,732,619



$

6,469,511



$

6,117,873


Deposits:










Interest-bearing demand

$

821,516



$

784,741



$

774,798



$

748,176



$

736,142


Savings and money market

2,414,974



2,166,002



2,209,675



2,028,249



1,936,090


Time

1,372,424



1,169,960



1,049,810



965,131



902,186


FHLB advances and other borrowings

1,333,438



1,508,787



1,106,577



1,075,948



984,708


Total interest-bearing liabilities

$

5,942,352



$

5,629,490



$

5,140,860



$

4,817,504



$

4,559,126












Total assets

$

8,176,612



$

7,739,015



$

7,157,259



$

6,891,210



$

6,532,738


Non-interest-bearing demand deposits

$

1,283,434



$

1,194,118



$

1,134,070



$

1,198,337



$

1,108,928


Total deposits

$

5,892,348



$

5,314,821



$

5,168,353



$

4,939,893



$

4,683,346


Total shareholders' equity

$

860,142



$

835,752



$

818,538



$

800,411



$

786,056












Yields/Rates:










Loans:










Commercial real estate

5.22

%


5.04

%


5.05

%


5.13

%


5.31

%

Warehouse Purchase Program

3.27

%


3.26

%


3.35

%


3.33

%


3.35

%

Commercial and industrial

4.49

%


4.36

%


4.45

%


4.49

%


4.48

%

Construction and land

5.24

%


5.34

%


5.35

%


5.41

%


5.42

%

Consumer real estate

4.71

%


4.69

%


4.77

%


4.81

%


4.82

%

Other consumer

5.68

%


5.62

%


5.66

%


5.63

%


5.63

%

Total loans held for investment

4.68

%


4.59

%


4.67

%


4.72

%


4.75

%

Loans held for sale

3.46

%


3.55

%


3.68

%


3.79

%


3.94

%

Securities

2.19

%


2.29

%


2.32

%


2.10

%


2.08

%

Overnight deposits

0.54

%


0.54

%


0.55

%


0.36

%


0.34

%

Total interest-earning assets

4.28

%


4.23

%


4.31

%


4.30

%


4.35

%

Deposits:










Interest-bearing demand

0.50

%


0.49

%


0.48

%


0.47

%


0.47

%

Savings and money market

0.33

%


0.24

%


0.24

%


0.19

%


0.19

%

Time

0.80

%


0.73

%


0.70

%


0.71

%


0.71

%

FHLB advances and other borrowings

1.10

%


0.94

%


1.13

%


0.84

%


0.79

%

Total interest-bearing liabilities

0.63

%


0.57

%


0.56

%


0.48

%


0.47

%

Net interest spread

3.65

%


3.66

%


3.75

%


3.82

%


3.88

%

Net interest margin

3.80

%


3.79

%


3.88

%


3.94

%


4.00

%

Cost of deposits (including non-interest-bearing demand)

0.39

%


0.33

%


0.32

%


0.29

%


0.29

%

 

LegacyTexas Financial Group, Inc.

Supplemental Information- Non-GAAP Financial Measures

(unaudited)



At or For the Quarters Ended


September 30,
 2016


June 30,
 2016


March 31,
 2016


December 31,
 2015


September 30,
 2015

Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share (calculated net of estimated tax rate of 35%, except as otherwise noted)

(Dollars in thousands, except per share amounts)

GAAP net income available to common shareholders1

$

27,084



$

23,114



$

21,954



$

16,336



$

17,768


Distributed and undistributed earnings to participating securities1

133



103



128



110



127


GAAP net income

27,217



23,217



22,082



16,446



17,895


Net (gain) on sale of insurance subsidiary operations2



(39)








One-time (gain) loss on assets

(68)



155



(2,184)



(133)



(130)


(Gain) loss on sale of available for sale securities

2



(42)





(11)



16


Loss on sale of FHA loan portfolio

969










Core (non-GAAP) net income

$

28,120



$

23,291



$

19,898



$

16,302



$

17,781


Average shares for basic earnings per share

46,227,734


46,135,999


46,024,250


45,939,817



45,862,840


GAAP basic earnings per share

$

0.59



$

0.50



$

0.48



$

0.36



$

0.39


Core (non-GAAP) basic earnings per share

$

0.61



$

0.50



$

0.43



$

0.35



$

0.39


Average shares for diluted earnings per share

46,546,532


46,352,141


46,152,301


46,267,956



46,188,461


GAAP diluted earnings per share

$

0.58



$

0.50



$

0.48



$

0.35



$

0.38


Core (non-GAAP) diluted earnings per share

$

0.60



$

0.50



$

0.43



$

0.35



$

0.38


Reconciliation of Core (non-GAAP) to GAAP Non-Interest Income (gross of tax)










GAAP non-interest income

$

11,277



$

13,722



$

14,655



$

11,593



$

11,851


Net (gain) on sale of insurance subsidiary operations



(1,181)








One-time (gain) loss on assets

(105)



238



(3,360)



(205)



(200)


(Gain) loss on sale of available for sale securities

3



(65)





(17)



25


Loss on sale of FHA loan portfolio

1,491










Core (non-GAAP) non-interest income

$

12,666



$

12,714



$

11,295



$

11,371



$

11,676




1

Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B.

2

Calculated net of tax on extraordinary gain totaling $1.1 million.

 


At or For the Quarters Ended


September 30,
 2016


June 30,
 2016


March 31,
 2016


December 31,
 2015


September 30,
 2015


(Dollars in thousands)

Reconciliation of Core (non-GAAP) to GAAP Efficiency Ratio (gross of tax)










GAAP efficiency ratio:










Non-interest expense

$

39,674



$

39,613



$

37,542



$

39,043



$

37,827


Net interest income plus non-interest income

84,757



83,076



80,006



75,335



73,039


Efficiency ratio- GAAP basis

46.81

%


47.68

%


46.92

%


51.83

%


51.79

%











Core (non-GAAP) efficiency ratio:










GAAP non-interest expense

$

39,674



$

39,613



$

37,542



$

39,043



$

37,827


Less: Amortization of core deposit intangible

(86)



(86)



(106)



(112)



(139)


Non-interest expense- as adjusted

$

39,588



$

39,527



$

37,436



$

38,931



$

37,688












GAAP non-interest income

$

11,277



$

13,722



$

14,655



$

11,593



$

11,851


Adjustments to non-interest income:










Net (gain) on sale of insurance subsidiary operations



(1,181)








One-time (gain) loss on assets

(105)



238



(3,360)



(205)



(200)


(Gain) loss on sale of available for sale securities

3



(65)





(17)



25


Loss on sale of FHA loan portfolio

1,491










(Gain) loss on purchased credit impaired loans

(7)



(8)



(132)



(10)



(174)


(Gain) loss on foreclosed assets

7



2



(49)



(19)



(56)


Non-interest income- as adjusted

$

12,666



$

12,708



$

11,114



$

11,342



$

11,446












Net interest income plus adjusted non-interest income

86,146



82,062



76,465



75,084



72,634












Efficiency ratio- core (non-GAAP) basis

45.95

%


48.17

%


48.96

%


51.85

%


51.89

%











Calculation of Tangible Book Value per Share:









Total shareholders' equity

$

866,845



$

843,304



$

823,052



$

804,076



$

792,637


Less: Goodwill

(178,559)



(178,559)



(180,776)



(180,776)



(180,632)


Identifiable intangible assets, net

(752)



(838)



(924)



(1,030)



(1,142)


Total tangible shareholders' equity

$

687,534



$

663,907



$

641,352



$

622,270



$

610,863


Shares outstanding at end of period

47,773,160


47,670,440


47,645,826


47,645,826



47,640,193












Book value per share- GAAP

$

18.15



$

17.69



$

17.27



$

16.88



$

16.64


Tangible book value per share- Non-GAAP

14.39



13.93



13.46



13.06



12.82












Calculation of Tangible Equity to Tangible Assets:









Total assets

$

8,440,010



$

8,057,005



$

7,562,126



$

7,691,940



$

6,878,843


Less: Goodwill

(178,559)



(178,559)



(180,776)



(180,776)



(180,632)


Identifiable intangible assets, net

(752)



(838)



(924)



(1,030)



(1,142)


Total tangible assets

$

8,260,699



$

7,877,608



$

7,380,426



$

7,510,134



$

6,697,069












Equity to assets- GAAP

10.27

%


10.47

%


10.88

%


10.45

%


11.52

%

Tangible equity to tangible assets- Non-GAAP

8.32



8.43



8.69



8.29



9.12


 


At or For the Quarters Ended


September 30,
 2016


June 30,
 2016


March 31,
 2016


December 31,
 2015


September 30,
 2015


(Dollars in thousands)

Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core) (unaudited)

Net income

$

27,217



$

23,217



$

22,082



$

16,446



$

17,895


Core (non-GAAP) net income

28,120



23,291



19,898



16,302



17,781


Average total equity

860,142



835,752



818,538



800,411



786,056


Average total assets

8,176,612



7,739,015



7,157,259



6,891,210



6,532,738


Return on average common shareholders' equity

12.66

%


11.11

%


10.79

%


8.22

%


9.11

%

Core (non-GAAP) return on average common shareholders' equity

13.08



11.15



9.72



8.15



9.05


Return on average assets

1.33



1.20



1.23



0.95



1.10


Core (non-GAAP) return on average assets

1.38



1.20



1.11



0.95



1.09


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/legacytexas-financial-group-inc-reports-record-third-quarter-2016-earnings-of-272-million-300347017.html

SOURCE LegacyTexas Financial Group, Inc.