Bulletin
Investor Alert

press release

Jan. 23, 2020, 5:11 p.m. EST

Reliant Bancorp, Inc. Reports Results for Fourth Quarter 2019

Reported Diluted EPS of $0.37 / Adjusted Diluted EPS of $0.47Loan Growth at 17.6% (annualized) / Core Deposit Growth at 7.5% (annualized)Announced Definitive Agreement to Acquire First Advantage BankClosed on $60 Million Subordinated Debt Offering

Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) /zigman2/quotes/209472214/lastsale RBNC -7.92% , the parent company for Reliant Bank (“Reliant” or the “Bank”), reported net income available to common shareholders of $4.1 million, or $0.37 per diluted common share for the fourth quarter of 2019 and net income available to common shareholders of $16.2 million, or $1.44 per common diluted share, for the year ended December 31, 2019, compared to $4.1 million, or $0.36 per diluted common share, for the fourth quarter of 2018 and net income available to common shareholders of $14.1 million, or $1.23 per common diluted share, for the year ended December 31, 2018. Excluding merger-related expense, the Company reported net income available to common shareholders of $5.3 million, or $0.47 per diluted common share, for the fourth quarter of 2019 compared to $4.1 million, or $0.36 per diluted common share, for the fourth quarter of 2018 ("non-GAAP").

DeVan Ard, Jr., Reliant Bancorp's Chairman, President and CEO stated, "This was a transformational quarter for our company. We announced a definitive agreement to acquire First Advantage Bancorp headquartered in Clarksville, Tennessee, successfully closed on a $60 million subordinated debt offering, and completed the previously announced acquisition of Community Bank & Trust.”

Ard continued, "Our team delivered another outstanding quarter. Loan production exceeded $216 million, providing good momentum as we start 2020, and customer deposits increased by $77 million, a 28% annualized growth rate. These results reflect the quality of our bankers, the attractiveness of our franchise and the continued strength of our Middle Tennessee and Chattanooga markets."

Quarterly Highlights

Consistent, Sustainable Growth Driven by Strong, In-Market Relationships and Strategic Acquisitions

Loans-held-for-investment increased $59.3 million, or 17.6%, annualized, linked quarter, and by $178.9 million, or 14.5% year-over-year. Fourth quarter 2019 loan production totaled a franchise record of $216.7 million at a weighted average rate of 4.7%.

Total deposits decreased $26.8 million, or 6.7%, annualized, linked quarter, but increased $145.9 million, or 10.1%, year-over-year. The linked quarter decrease primarily was due to a $101.6 million reduction in wholesale funding. Core deposits increased $17.6 million, or 7.5%, linked quarter and $72.5 million, or 8.2%, year-over-year and customer deposits (excludes all wholesale funding) increased by $76.7 million, or 27.5% annualized, linked quarter, and $123.3 million, or 11.5% year-over-year. Ard continued, “The success we've experienced sourcing low cost, core deposits provides significant value to our franchise and will continue to be a strategic focus for our bankers in 2020, allowing us to continue reducing wholesale funding levels and our cost of funds."

On October 23, 2019, the Company announced a definitive agreement to acquire First Advantage Bancorp ("FABK"), the parent of First Advantage Bank, headquartered in Clarksville, Tennessee. As of December 31, 2019, FABK reported approximately $738.0 million of total assets, approximately $646.4 million of loans-held-for-investment and approximately $610.9 million of deposits. The FABK acquisition is expected to close in the second quarter of 2020.

On January 2, 2020, the Company announced the completion of the acquisition of Tennessee Community Bank Holdings, Inc., (“TCB”) the parent of Community Bank & Trust ("CBT"), headquartered in Ashland City, Tennessee. At December 31, 2019, CBT reported approximately $252.9 million of total assets, approximately $174.0 million of loans-held-for-investment and approximately $210.1 million of deposits.

On a pro forma basis, the combined companies would have reported total assets of approximately $2.9 billion, loans-held-for-investment of approximately $2.2 billion and deposits of approximately $2.4 billion as of December 31, 2019.

Focus on Stabilizing Net Interest Margin Through Asset Mix Optimization and Pricing Discipline

Net interest margin declined 5 basis points from the linked quarter to 3.46%. The $60 million subordinated debt offering, which closed on December 13, 2019, accounted for 4 basis points of fourth quarter margin contraction and increased fourth quarter cost of funds by 4 basis points. Our yield on earning assets declined by 16 basis point linked quarter, as 45.8% of loans and 21.2% of bonds carry variable interest rates. Loans-held-for-investment were down 11 basis points and securities were down 17 basis points, due partly to our bond rotation strategy and some accelerated premium amortization experienced during the quarter. Our cost of funds decreased 11 basis points, linked quarter, as competition supported higher interest rates on customer deposits even as the cost of wholesale funding decreased by 25 basis points.

Ard stated, "We continued our strategy of optimizing earning asset mix by reducing the securities portfolio by another $37 million and using the proceeds to fund loan growth, picking up between 110 and 120 basis points of yield on the rotation. Securities accounted for 16.5% of average earning assets at the end of the fourth quarter, down from 18.9% in December 2018. We expect that securities will continue to decline as a percentage of earning assets and are targeting 10% to 12% in 2020."

Asset Quality Remains a Hallmark of the Franchise

Credit quality remained strong, as nonperforming loans accounted for 0.29% of total loans-held-for-investment and nonperforming assets accounted for 0.26% of total assets at December 31, 2019. Loans past due 89 days or less accounted for 0.06% of total loans-held-for-investment. Additionally, the Company disposed of two of the three remaining other real estate properties realizing a $166,000 gain and disposed of the remaining property in January 2020. The loan loss reserve was 0.89% of loans-held-for-investment at December 31, 2019 (1.10% when unamortized purchased loan discounts are included), down 2 basis points from September 30, 2019. Provision for loan losses of $405,000 was realized during the fourth quarter of 2019. Net charge-offs for the quarter accounted for 0.03% of total loans-held-for-investment. For the year, the Company recorded net recoveries of $475,000, or 0.03% of total loans-held-for-investment.

Financial Strength Positions Company for Growth and Creates Shareholder Value

Stockholders’ equity increased by $4.1 million linked quarter, or 7.4% percent annualized, to $223.8 million at December 31, 2019. Both the Company and Bank continue to meet the criteria to be classified as "Well Capitalized" financial institutions under applicable banking regulations. The Company closed on a $60 million subordinated debt offering on December 13, 2019. The debt carries a fixed coupon of 5.125% for the first five years with a floating coupon rate for the final five years. The Company declared a dividend of $0.10 per share on January 22, 2020, payable on February 14, 2020, a 11.1% increase over the dividend paid for the fourth quarter of 2018, marking the nineteenth consecutive quarter in which a dividend has been declared.

Book value per share increased by $0.35, or 7.1% annualized, to $19.97 linked quarter and by $1.90 or 10.5% year-over-year. Tangible book value per share ("TBVPS") (non-GAAP) increased by $0.37, or 9.8% annualized, to $15.42 linked quarter and by $1.84, or 13.5%, year-over-year.

Conclusion

Ard concluded, "I am proud of what our team accomplished during the fourth quarter and throughout 2019. We are transforming our balance sheet and market footprint through two strategic acquisitions, continuing to deliver balanced and profitable growth and staying focused on building the core franchise to support a profitable future. I want to thank our team for their dedication and hard work in 2019, and I am very optimistic about the future of our Company as we enter into a new year."

Conference Call Information

The Company will hold a conference call to discuss fourth quarter 2019 results on Friday, January 24, 2020, at 9:00 a.m. CST, and the earnings conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1855/32672 . A link to these events can be found on the Company’s website at www.reliantbank.com and will be available for 12 months. Related presentation materials will be posted to the “Investor Relations” section of the Company’s web site at www.reliantbank.com prior to the call.

About Reliant Bancorp, Inc. and Reliant Bank

Reliant Bancorp, Inc. is a Brentwood, Tennessee-based bank holding company which, through its wholly owned subsidiary Reliant Bank, operates banking centers in Cheatham, Davidson, Hamilton, Hickman, Maury, Montgomery, Robertson, Rutherford, Sumner, and Williamson counties, 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 December 31, 2019, Reliant Bancorp had approximately $1.9 billion in total consolidated assets, approximately $1.4 billion in loans and approximately $1.6 billion in deposits. For additional information, locations and hours of operation, please visit www.reliantbank.com .

Non-GAAP Financial Measures

This document contains non-GAAP financial measures. The non-GAAP measures in this release include “adjusted net interest margin,” “adjusted net income attributable to common shareholders and related impact,” "average tangible stockholders' equity," "ROATCE," "adjusted ROATCE," "tangible assets," tangible equity," "TBVPS," "efficiency ratio (subsidiary bank only excluding mortgage segment)," and "adjusted loan loss reserve." We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe certain purchase accounting adjustments, income relating to the recoveries of purchased credit impaired loans, and merger expenses do not necessarily reflect the operational performance of the business in these periods; accordingly, it is useful to consider these line items with and without such adjustments. We believe this presentation also increases comparability of period-to-period results.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under generally accepted accounting principles.

Forward-Looking Statements

All statements, other than statements of historical fact, included in this release and any oral statements made regarding the subject of this release, including in the conference call referenced herein, 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 the benefits of a strategic acquisition, the bond portfolio and non-core funding, future balance sheet growth and acquisition opportunities. 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 possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (2) increased levels of other real estate, primarily as a result of foreclosures, (3) the impact of liquidity needs on our results of operations and financial condition, (4) competition from financial institutions and other financial service providers, (5) the effect of interest rate increases on the cost of deposits, (6) unanticipated weakness in loan demand or loan pricing, (7) lack of strategic growth opportunities or our failure to execute on those opportunities, (8) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (9) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (10) our ability to effectively manage problem credits, (11) our ability to successfully implement efficiency initiatives on time and in amounts projected, (12) our ability to successfully develop and market new products and technology, (13) the impact of negative developments in the financial industry and U.S. and global capital and credit markets, (14) our ability to retain the services of key personnel, (15) our ability to adapt to technological changes, (16) risks associated with litigation, including the applicability of insurance coverage, (17) the vulnerability of the Bank’s network and online banking portals, and the systems of parties with whom the Company and the Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches, (18) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (19) adverse results (including costs, fines, reputational harm, and/or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, (20) the risk that expected cost savings and revenue synergies from (i) the merger of the Company and TCB (the “TCB Holdings Transaction”) or (ii) the proposed merger between the Company and FABK (the “First Advantage Transaction” and, together with the TCB Holdings Transaction, collectively, the “Transactions”), may not be realized or may take longer than anticipated to be realized, (21) the ability to meet expectations regarding the timing and completion of the First Advantage Transaction and the accounting and tax treatment of the Transactions, (22) the effect of the announcement, pendency, or completion of the Transactions 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, (23) the risk that the businesses and operations of TCB and its subsidiaries and of FABK and its subsidiaries cannot be successfully integrated with the business and operations of the Company and its subsidiaries or that integration will be more costly or difficult than expected, (24) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement for the First Advantage Transaction, (25) the amount of costs, fees, expenses, and charges related to the Transactions, including those arising as a result of unexpected factors or events, (26) the ability to obtain the shareholder and governmental approvals required for the First Advantage Transaction, (27) reputational risk associated with and the reaction of the parties’ customers, suppliers, employees, or other business partners to the Transactions, (28) the failure of any of the conditions to the closing of the First Advantage Transaction to be satisfied, or any unexpected delay in closing the First Advantage Transaction, (29) the dilution caused by the Company’s issuance of additional shares of its common stock in the Transactions, (30) the Company’s ability to simultaneously execute on two separate business combination transactions, (31) the risk associated with Company management’s attention being diverted away from the day-to-day business and operations of the Company to the completion of the Transactions, and (32) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov . The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company’s ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.

 
RELIANT BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2019, SEPTEMBER 30, 2019 AND DECEMBER 31, 2018
(Dollar Amounts in Thousands)
 
ASSETS December 31,
2019
  September 30,
2019
  December 31,
2018
  Unaudited   Unaudited   Audited
Cash and due from banks $ 50,990     $ 51,247     $ 34,807  
Federal funds sold 52     73     371  
Total cash and cash equivalents 51,042     51,320     35,178  
Securities available for sale 260,293     297,310     296,323  
Loans, net of unearned income 1,409,952     1,350,683     1,231,076  
Allowance for loan losses (12,578 )   (12,291 )   (10,892 )
Loans, net 1,397,374     1,338,392     1,220,184  
Mortgage loans held for sale, net 37,476     16,757     15,823  
Accrued interest receivable 7,111     7,488     8,214  
Premises and equipment, net 21,376     21,390     22,033  
Restricted equity securities, at cost 11,279     11,279     11,690  
Other real estate, net 750     1,943     1,000  
Cash surrender value of life insurance contracts 46,632     46,351     45,513  
Deferred tax assets, net 3,933     456     7,428  
Goodwill 43,642     43,642     43,642  
Core deposit intangibles 7,270     7,507     8,219  
Other assets 10,289     8,652     9,091  
TOTAL ASSETS $ 1,898,467     $ 1,852,487     $ 1,724,338  
LIABILITIES AND STOCKHOLDERS’ EQUITY          
LIABILITIES          
Deposits          
Demand $ 260,073     $ 237,917     $ 216,937  
Interest-bearing demand 152,718     149,442     154,218  
Savings and money market deposit accounts 408,724     397,243     401,308  
Time 762,274     826,031     665,440  
Total deposits 1,583,789     1,610,633     1,437,903  
Accrued interest payable 2,022     1,610     1,063  
Subordinated debentures 70,883     11,665     11,603  
Federal Home Loan Bank advances 10,737     3,928     57,498  
Dividends payable 76     1,012     1,036  
Other liabilities 7,207     3,987     6,821  
TOTAL LIABILITIES 1,674,714     1,632,835     1,515,924  
STOCKHOLDERS’ EQUITY          
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date          
Common stock, $1 par value; 30,000,000 shares authorized; 11,206,254, 11,195,062 and 11,530,810 shares issued and outstanding at December 31, 2019, September 30, 2019, and December 31, 2018, respectively 11,206     11,195     11,531  
Additional paid-in capital 167,006     166,512     173,238  
Retained earnings 40,472     36,339     27,329  
Accumulated other comprehensive loss 5,069     5,606     (3,684 )
TOTAL STOCKHOLDERS’ EQUITY 223,753     219,652     208,414  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 1,898,467     1,852,487     1,724,338  
 
RELIANT BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
  Three Months Ended   YTD
  December 31,
2019
  September 30,
2019
  December 31,
2018
  December 31,
2019
  December 31,
2018
INTEREST INCOME                  
Interest and fees on loans $ 17,790   $ 17,502     $ 15,854     $ 68,421   $ 58,351
Interest and fees on loans held for sale   347     263       177       961     1,278
Interest on investment securities, taxable   460     549       462       2,099     1,836
Interest on investment securities, nontaxable   1,508     1,576       1,684       6,452     6,605
Federal funds sold and other   334     321       286       1,252     1,155
                   
TOTAL INTEREST INCOME   20,439     20,211       18,463       79,185     69,225
                   
INTEREST EXPENSE                  
Deposits                  
Demand   106     81       103       384     366
Savings and money market   1,000     973       880       4,154     2,589
Time   4,509     4,828       3,125       17,361     9,862
Federal Home Loan Bank advances and other   9     66       580       543     1,855
Subordinated debentures   348     199       198       938     724
TOTAL INTEREST EXPENSE   5,972     6,147       4,886       23,380     15,396
NET INTEREST INCOME   14,467     14,064       13,577       55,805     53,829
PROVISION FOR LOAN LOSSES   405     606       276       1,211     1,035
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   14,062     13,458       13,301       54,594     52,794
NONINTEREST INCOME                  
Service charges on deposit accounts   950     976       915       3,746     3,419
Gains on mortgage loans sold, net   1,735     1,385       357       4,905     4,418
Gain on securities transactions, net   1,145         1,451     43
Gain on sale of other real estate   166         166     259
Gain (loss) on disposal of premises and equipment       (3 )       13
Other   572     399       355       1,696     1,494
TOTAL NONINTEREST INCOME   4,568     2,760       1,624       11,964     9,646
NONINTEREST EXPENSE                  
Salaries and employee benefits   7,909     7,634       7,030       30,514     27,510
Occupancy   1,354     1,359       1,276       5,423     4,949
Information technology   1,675     1,553       1,420       6,213     5,333
Advertising and public relations   377     387       187       1,293     600
Audit, legal and consulting   466     350       949       2,302     2,976
Federal deposit insurance   257     (96 )     163       605     793
Provision for losses on other real estate   98         98  
Merger expenses   1,301     299       32       1,603     2,774
Other operating   1,536     1,561       1,139       5,841     5,626
TOTAL NONINTEREST EXPENSE   14,973     13,047       12,196       53,892     50,561
INCOME BEFORE PROVISION FOR INCOME TAXES   3,657     3,171       2,729       12,666     11,879
INCOME TAX EXPENSE   699     557       (59 )     2,129     1,372
CONSOLIDATED NET INCOME   2,958     2,614       2,788       10,537     10,507
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY   1,175     1,386       1,335       5,659     3,578
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 4,133   $ 4,000     $ 4,123     $ 16,196   $ 14,085
Basic net income attributable to common shareholders, per share $ 0.37   $ 0.36     $ 0.36     $ 1.44   $ 1.24
Diluted net income attributable to common shareholders, per share $ 0.37 $ 0.36     $ 0.36   $ 1.44 $ 1.23
 
RELIANT BANCORP, INC.
SEGMENT FINANCIAL INFORMATION
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands)
(Unaudited)
 
Retail Banking                  
  Three Months Ended   Year Ended
  December 31,
2019
  September 30,
2019
  December 31,
2018
  December 31,
2019
  December 31,
2018
Net interest income $   14,266     $   13,910     $   13,479     $   55,252     $   53,008  
Provision for loan losses   405       606       276       1,211       1,035  
Noninterest income   2,833       1,375       1,266       7,059       5,232  
Noninterest expense (excluding merger expenses)   10,479       9,726       10,284       40,779       38,738  
Merger expenses   1,301       299       32       1,603       2,774  
Income before provision for income taxes   4,914       4,654       4,153       18,718       15,693  
Income tax expense   781       654       30       2,522       1,608  
Net income attributable to common shareholders $   4,133     $   4,000     $   4,123     $   16,196     $   14,085  
                   
                   
Residential Mortgage Banking                  
  Three Months Ended   Year Ended
  December 31,
2019
  September 30,
2019
  December 31,
2018
  December 31,
2019
  December 31,
2018
Net interest income $   201     $   154     $   98     $   553     $   821  
Provision for loan losses        
Noninterest income   1,735       1,385       358       4,905       4,414  
Noninterest expense   3,193       3,022       1,880       11,510       9,049  
Loss before provision for income taxes   (1,257 )     (1,483 )     (1,424 )     (6,052 )     (3,814 )
Income tax benefit   (82 )     (97 )     (89 )     (393 )     (236 )
Net loss   (1,175 )     (1,386 )     (1,335 )     (5,659 )     (3,578 )
Noncontrolling interest in net loss of subsidiary   1,175       1,386       1,335       5,659       3,578  
Net income attributable to common shareholders $     $     $     $     $  

The above financial information is presented, net of intercompany eliminations.

 
RELIANT BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA
AT OR FOR THE THREE MONTHS ENDED
(Dollar Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
 
  December 31,
2019
September 30,
2019
December 31,
2018
Per Common Share Data      
Net income attributable to shareholders, per share      
Basic $   0.37   $   0.36   $   0.36  
Diluted $   0.37   $   0.36   $   0.36  
Book value per common share $   19.97   $   19.62   $   18.07  
Basic weighted average common shares   11,105,912     11,104,918     11,420,432  
Diluted weighted average common shares   11,189,302     11,177,367     11,501,758  
Common shares outstanding at period end   11,206,254     11,195,062     11,530,810  
Selected Balance Sheet Data      
Loans, net of unearned income $   1,409,952   $   1,350,683   $   1,231,076  
Total assets   1,898,467     1,852,487     1,724,338  
Customer deposits   1,192,500     1,117,718     1,069,203  
Wholesale and other purchased funds   391,289     492,915     368,700  
Total deposits   1,583,789     1,610,633     1,437,903  
Total liabilities   1,674,714     1,632,835     1,515,924  
Total stockholders' equity   223,753     219,652     208,414  
Total liabilities and stockholders' equity   1,898,467     1,852,487     1,724,338  
Selected Balance Sheet Data - Quarterly Average      
Loans held for investment   1,368,338     1,312,153     1,201,866  
Earnings assets [(1)]   1,746,678     1,669,482     1,548,083  
Total assets   1,883,723     1,806,455     1,689,668  
Interest-bearing liabilities   1,406,116     1,354,451     1,258,235  
Total liabilities   1,663,156     1,589,368     1,484,039  
Total stockholder's equity   220,567     217,087     205,629  
Total liabilities and stockholder's equity   1,883,723     1,806,455     1,689,668  
Selected Asset Quality Measures      
Nonaccrual loans $   4,071   $   4,380   $   4,194  
90+ days past due still accruing   64     121     6  
Total nonperforming loans   4,135     4,501     4,200  
Total nonperforming assets [(2)]   4,885     6,444     5,200  
Net charge offs (recoveries)   118     (19 )   82  
Nonperforming loans to total loans   0.29 %   0.33 %   0.34 %
Nonperforming assets to total assets   0.26 %   0.35 %   0.30 %
Nonperforming assets to total loans and other real estate   0.35 %   0.48 %   0.42 %
Unamortized purchase credit discounts   2,909     3,326     4,525  
Allowance for loan losses to total loans   0.89 %   0.91 %   0.88 %
Allowance for loan losses to nonperforming loans   304.18 %   273.07 %   259.33 %
Allowance for loan losses and purchase loan discounts to total loans   1.10 %   1.16 %   1.25 %
Net charge offs (recoveries) to average loans [(3)]   0.03 %   (0.01 )%   0.03 %
Capital Ratios (Bank Subsidiary Only)(5)      
Tier 1 leverage   10.29 %   9.55 %   10.17 %
Common equity tier 1   12.80 %   11.29 %   12.19 %
Total risk-based capital   13.69 %   12.15 %   13.02 %
Selected Performance Ratios (3) (4)      
Return on average assets (ROA)   0.88 %   0.89 %   0.98 %
Return on average stockholders' equity (ROE)   7.50 %   7.37 %   8.02 %
Net interest margin (tax-equivalent basis)   3.46 %   3.51 %   3.82 %

[(1)] Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, investment securities and restricted equity securities.
[(2)] Nonperforming assets consist of nonperforming loans (excluding troubled debt restructurings) and other real estate.
[(3)] Data has been annualized.
[(4)] Current quarter capital ratios are estimated.

RELIANT BANCORP, INC. YIELD TABLES FOR THE PERIODS INDICATED ( Dollar Amounts in Thousands) (Unaudited)

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
December 31, 2019
Three Months Ended
September 30, 2019
Three Months Ended
December 31, 2018
  Average
Balances
Rates /
Yields
(%)
Interest
Income /
Expense
Average
Balances
Rates /
Yields
(%)
Interest
Income /
Expense
Average
Balances
Rates /
Yields
(%)
Interest
Income /
Expense
Interest earning assets                  
Loans $   1,368,338 5.01   $   17,263 $   1,312,153 5.12   $   16,934 $   1,201,866 5.28   $   16,007
Loan fees 0.26     895 0.26     870 0.24     718
Loans with fees   1,368,338 5.27     18,158   1,312,153 5.38     17,804   1,201,866 5.52     16,725
Mortgage loans held for sale   29,127 4.73     347   18,271 5.71     263   13,744 5.11     177
Deposits with banks   47,816 1.54     186   33,410 1.96     165   27,581 1.44     100
Investment securities - taxable   73,891 2.47     460   73,115 2.98     549   69,855 2.62     462
Investment securities - tax-exempt   214,283 3.55     1,918   220,233 3.60     1,999   222,598 3.81     2,135
Federal funds sold and other   13,223 4.44     148   12,300 5.03     156   12,439 5.93     186
Total earning assets   1,746,678 4.82     21,217   1,669,482 4.98     20,937   1,548,083 5.07     19,785
Nonearning assets   137,045       136,973       141,585    
Total assets $   1,883,723     $   1,806,455     $   1,689,668    
Interest bearing liabilities                  
Interest bearing demand $   152,723 0.28   $   106 $   142,702 0.23   $   81 $   145,810 0.28   $   103
Savings and money market   383,013 1.04     1,000   350,440 1.10     973   358,300 0.97     880
Time deposits - retail   508,473 2.03     2,599   540,688 2.17     2,956   564,610 1.84     2,624
Time deposits - wholesale   333,471 2.27     1,910   294,750 2.52     1,872   87,671 2.27     501
Total interest bearing deposits   1,377,680 1.62     5,615   1,328,580 1.76     5,882   1,156,391 1.41     4,108
Federal Home Loan Bank advances   4,530 0.79     9   14,216 1.84     66   90,247 2.55     580
Subordinated debt   23,906 5.78     348   11,655 6.77     199   11597 6.77     198
Total borrowed funds   28,436 4.98     357   25,871 4.06     265   101,844 3.03     778
Total interest-bearing liabilities   1,406,116 1.69     5,972   1,354,451 1.80     6,147   1,258,235 1.54     4,886
Net interest rate spread (%) / Net interest income ($)   3.13     15,245   3.18     14,790   3.53     14,899
Non-interest bearing deposits   250,217 (0.26 )     227,502 (0.26 )     221,564 (0.23 )  
Other non-interest bearing liabilities   6,823       7,415       4,240    
Stockholder's equity   220,567       217,087       205,629    
Total liabilities and stockholders' equity $   1,883,723     $   1,806,455     $   1,689,668    
Cost of funds   1.43       1.54       1.31    
Net interest margin   3.46       3.51       3.82    
 

Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. 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. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.

 
RELIANT BANCORP, INC.
NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
 
  Three Months Ended
  December 31,
2019
  September 30,
2019
  December 31,
2018
NON-GAAP FINANCIAL MEASURES          
Adjusted net interest margin (1)          
Tax equivalent net interest income [(1)(2)] $   15,245     $   14,790     $   14,899  
Purchase accounting adjustments   (622 )     (383 )     (456 )
Tax credits   (366 )     (300 )     (868 )
Adjusted net interest income $   14,257     $   14,107     $   13,575  
Adjusted net interest margin   3.23 %     3.35 %     3.48 %
           
Adjusted net income attributable to common shareholders and Related Impact (1)          
Net income attributable to common shareholders $   4,133     $   4,000     $   4,123  
           
Merger expenses   1,301       299       32  
Pre-tax adjustments to net income   1,301       299       32  
Tax effect of adjustments to net income   173       27       6  
After tax adjustments to net income $   1,128     $   272     $   26  
Adjusted net income attributable to common shareholders $   5,261     $   4,272     $   4,149  
Adjusted return on average assets [(3)]   1.12 %     0.95 %     0.98 %
Adjusted return on average stockholders' equity [(3)]   9.54 %     7.87 %     8.07 %
Adjusted net income attributable to common          
shareholders, per diluted share $   0.47     $   0.38     $   0.36  
           
Average tangible stockholders' equity: (1)          
Average stockholders' equity $   220,567     $   217,087     $   205,629  
Less: average goodwill   43,642       43,642       43,632  
Less: average core deposit intangibles   7,364       7,598       8,306  
Net average tangible common equity   169,561       165,847       153,691  
           
Return on average tangible common equity (ROATCE)   9.75 %     9.65 %     10.73 %
Adjusted ROATCE   12.41 %     10.30 %     10.80 %

[(1)] Not a recognized measure under generally accepted accounting principles (GAAP).
[(2)] Amount includes tax equivalent adjustment to quantify the tax equivalent net interest income.
[(3)] Data has been annualized.

 
RELIANT BANCORP, INC.
NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands, Except Per Share Amounts)
(Unaudited)
 
  Three Months Ended
  December 31, 2019   September 30, 2019   December 31, 2018
Tangible assets: (1)          
Total assets $   1,898,467     $   1,852,487     $   1,724,338  
Less: goodwill   43,642       43,642       43,642  
Less: core deposit intangibles   7,270       7,507       8,219  
Net tangible assets $   1,847,555     $   1,801,338     $   1,672,477  
           
Tangible equity: (1)          
Total stockholders' equity $   223,753     $   219,652     $   208,414  
Less: goodwill   43,642       43,642       43,642  
Less: core deposit intangibles   7,270       7,507       8,219  
Net tangible common equity $   172,841     $   168,503     $   156,553  
           
Ratio of tangible common equity to tangible assets   9.36 %     9.35 %     9.36 %
           
Tangible book value per common share (TBVPS): (1)          
Net tangible equity $   172,841     $   168,503     $   156,553  
Common shares outstanding   11,206,254       11,195,062       11,530,810  
           
TBVPS   15.42       15.05       13.58  
Core bank efficiency ratio (excludes mortgage segment and merger expense)(1)          
Non-interest expense $   10,479     $   9,726     $   10,284  
           
Net interest income   14,266       13,910       13,479  
Tax equivalent adjustment for tax exempt interest income   778       726       1,322  
Non-interest income   2,833       1,375       1,266  
Less gain on sale of other real estate   (166 )    
Less gain on sale of securities   (1,145 )    
Add loss (less gain) on disposal of premises and equipment       3  
Adjusted operating income $   16,566     $   16,011     $   16,070  
           
Efficiency Ratio   63.26 %     60.75 %     63.99 %
           
Adjusted loan loss reserve: (1)          
Allowance for loan losses $   12,578     $   12,291     $   10,892  
Purchase loan discounts   2,909       3,326       4,525  
Loan loss reserve and purchase loan discounts $   15,487     $   15,617     $   15,417  
           
Allowance for loan losses and purchase loan discounts to total loans   1.10 %     1.16 %     1.25 %

[(1)] Not a recognized measure under generally accepted accounting principles (GAAP).

View source version on businesswire.com: https://www.businesswire.com/news/home/20200123005856/en/

SOURCE: Reliant Bancorp, Inc.

DeVan Ard, Jr.
Chairman, President and CEO
Reliant Bancorp, Inc.
(615.221.2020)

Copyright Business Wire 2020

/zigman2/quotes/209472214/lastsale
US : U.S.: Nasdaq
$ 11.40
-0.98 -7.92%
Volume: 23,946
March 27, 2020 4:00p
P/E Ratio
7.94
Dividend Yield
3.51%
Market Cap
$133.58 million
Rev. per Employee
$299,840
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