Heritage Oaks Bancorp (“Heritage Oaks” or the “Company”)
(NASDAQ:HEOP), a bank holding company and parent of Heritage Oaks
Bank (the “Bank”), reported net income available to common
shareholders of $4.0 million, or $0.12 per dilutive common share,
for the first quarter of 2016 compared to net income available to
common shareholders of $4.1 million, or $0.12 per dilutive common
share, for the first quarter of 2015, and net income available to
common shareholders of $3.5 million, or $0.10 per dilutive common
share for the fourth quarter of 2015.
First Quarter 2016
Highlights
- Gross loans increased by $84.0 million, or 7.0%, to $1.29
billion at March 31, 2016 compared to $1.21 billion at March 31,
2015, and by $44.1 million or 3.5% compared to $1.25 billion at
December 31, 2015. New loan production totaled $117.2 million
for the first quarter of 2016. Loan production increased by
4% compared to the linked quarter.
- Total deposits increased by $122.3 million, or 8.4% to $1.58
billion at March 31, 2016 compared with $1.46 billion a year
earlier, and by $17.6 million, or 1.1% during the first quarter of
2016. Non-interest bearing demand deposits grew by 8.2%
during the last year and by 1.8% over the last quarter to $524.0
million, and represent 33.1% of total deposits at March 31,
2016.
- The allowance for loan and lease losses (“ALLL”) as a
percentage of gross loans declined from 1.40% at March 31, 2015 to
1.36% at March 31, 2016. Credit quality remains strong with
non-accrual loans representing 0.63% of total gross loans at March
31, 2016, unchanged from the linked quarter, and down from 0.98% at
March 31, 2015. Net recoveries for the first quarter of 2016
were flat compared to the prior quarter at $0.1 million.
Loans delinquent 30 to 89 days declined to $32 thousand at March
31, 2016. There was no provision for loan losses recorded in the
first quarter due to relative stability in the credit quality of
our loan portfolio.
- Regulatory capital ratios for the Bank at March 31, 2016 were
9.13% for Tier 1 Leverage Capital, 13.05% for Total Risk Based
Capital, and 11.80% for Common Equity Tier One Capital to Total
Risk Based Capital.
- On April 27th, 2016 the board of directors declared a dividend
of $0.06 per common share for shareholders of record as of May
18th, 2016, which is payable to our common shareholders on May 31,
2016.
“We achieved strong loan growth during the first
quarter of 2016 which was supported by our new customer interest
rate swap product offering,” stated Simone Lagomarsino, President
and Chief Executive Officer of Heritage Oaks Bancorp. Ms.
Lagomarsino continued, “The swap product allows us to offer the
long term fixed rate loans that our customers desire, while
supporting a better interest rate risk profile for the Bank by
converting the loan to a fully variable rate asset on our balance
sheet. In addition, the swap product generated over $500 thousand
in non-interest income during the first quarter, and we are
confident that our customers’ interest in this product will
continue. We were also successful in our efforts to optimize
our asset mix profile by increasing our loan to deposit ratio by
nearly 2.00% during the first quarter. This should help
stabilize our net interest margin going forward, given the low
interest rate environment.”
Net Income Available to Common Shareholders
Net income available to common shareholders for
the first quarter of 2016 was $4.0 million, or $0.12 per diluted
common share, compared with $4.1 million, or $0.12 per diluted
common share, for the first quarter of 2015. Net income
available to common shareholders for the quarter ended December 31,
2015 was $3.5 million, or $0.10 per diluted common share.
Compared to the linked-quarter, non-interest
income increased, while non-interest expense declined. These
positive linked-quarter trends were partially offset by a decline
in net interest income, and the combined impacts resulted in a $1.0
million increase in pre-tax income. Compared to the first
quarter of 2015, non-interest expense increased, and was partially
offset by an increase in non-interest income, resulting in a $0.3
million decline in pre-tax income.
Net Interest Income
Net interest income was $15.6 million, or 3.56% of average
earning assets (“net interest margin”), for the first quarter of
2016 compared with $15.5 million, or a 3.92% net interest margin,
for the same period a year earlier, and $16.1 million, or a 3.67%
net interest margin, for the quarter ended December 31, 2015.
Net interest income increased slightly, compared to the same prior
year period, as the increase in average balances offset the decline
in yields on interest earning assets. Net interest income
decreased for the quarter ended March 31, 2016 as compared to
linked quarter by $0.5 million due primarily to a decrease in loan
interest income of $0.5 million attributable to lower loan
prepayment related income recorded during the current quarter as
compared to the linked quarter.
The net interest margin was 3.56% for the first
quarter of 2016 compared to 3.92% for the same prior year period,
and 3.67% for the linked quarter ended December 31, 2015. The
year-over-year 36 basis point decline in the net interest margin is
attributable to both a decline in loan yields, and a shift in asset
mix from higher yielding loans to lower yielding investment
securities. This shift in asset mix was primarily attributable to
strong growth in our average deposit balances over the last year,
which outpaced average loan growth and led to growth in average
investment securities.
Loan yields declined by 45 basis points to 4.67%
for the first quarter of 2016 from 5.12% for the first quarter of
2015. The decline in loan yields for the current quarter as
compared to the first quarter of 2015 was due to the impact of
originating new loans at lower yields than our average loan
portfolio yield due to the historically low interest rate
environment, and to a decline in purchased loan discount accretion.
Purchased loan discount accretion contributed 12 basis points
to loan yields during the current quarter, 23 basis points during
the linked quarter, and 37 basis points during the first quarter of
2015. The decline in purchased loan discount accretion for
the first quarter of 2016 as compared to the first quarter of 2015
is attributable to a lower level of accelerated loan discount
accretion associated with loan pay-offs, and to a gradual decline
in scheduled accretion due to loan maturities and
pay-offs.
The 11 basis point decline in the net interest
margin for the first quarter of 2016, compared to the linked
quarter is primarily attributable to a decline in loan yields.
Purchased loan discount accretion contributed a greater amount to
loan yields in the linked quarter than it did in the first quarter
of 2016, due to an increase in accelerated discount accretion
attributable to loan pay-offs in the linked quarter. Loan yields
were also elevated during the linked quarter due to a greater
amount of prepayment fee income received in the prior quarter than
in the first quarter of 2016.
The cost of deposits increased by 1 basis point
to 0.23% for the first quarter of 2016 compared to the prior
quarter, and declined by 2 basis points compared to 0.25% for the
first quarter of 2015. The 1 basis point increase in the cost
of deposits for the first quarter of 2016 compared to the linked
quarter was due to a decline in the average balance of non-interest
bearing demand deposits, as well as to a slight increase in the
cost of time deposits and money market deposits. The 2 basis
point decline in the cost of deposits for the first quarter of 2016
compared to the first quarter of 2015 was due to a decline in the
average balance and cost of time deposits.
Provision for Loan and Lease
Losses
No provisions for loan and lease losses were
recorded for the quarter ended March 31, 2016. The Company
has not required a loan and lease loss provision since 2012 due to
improvements in the credit quality of the loan portfolio over the
past three years. Annualized net recoveries were 0.04% of
average loans outstanding for the quarter ended March 31, 2016,
unchanged compared to the same period a year earlier, and
annualized net recoveries of 0.05% of average loans outstanding for
the linked quarter.
Non-Interest Income
Non-interest income for the first quarter of
2016 was $3.4 million, compared to $2.1 million for the linked
quarter, and $3.0 million for the same period a year earlier.
Non-interest income increased by $0.4 million for the current
quarter as compared to the same prior year period, primarily due to
an increase in customer swap fee income, which is represented by
gain on derivative instruments in non-interest income.
Compared to the linked quarter, non-interest income increased by
$1.3 million, primarily due to increases in customer swap fee
income and the gain on sale of investment securities.
Customer swap fee income is attributable to the
new program we rolled out in the latter part of 2015, which allows
our commercial loan clients to obtain fixed rate financing through
the use of “back-to-back” interest rate swaps. The Company
receives a fee for origination of each swap contract, and retains a
variable rate loan as a result of the transaction. Investment
securities gains on sale were attributable to on-going portfolio
repositioning activities.
Non-Interest Expense
Non-interest expense increased by $0.8 million,
or 6.8%, to $12.6 million for the quarter ended March 31, 2016
compared to $11.8 million for the quarter ended March 31, 2015.
Non-interest expense for the first quarter of 2016 decreased
by $0.2 million, or 1.2% from $12.8 million for the linked
quarter.
The increase in non-interest expense for the
first quarter of 2016 as compared to the first quarter a year ago
was due to a $0.5 million increase in professional services
expense, a $0.2 million increase in write-downs on other real
estate owned (“OREO”), and a $0.2 million increase in other
expense. The increase in professional services expense is
primarily attributable to a $0.3 million increase in temporary
consulting costs attributable to our BSA/AML Program remediation
efforts, as well as a $0.2 million increase in audit and tax
costs. The increase in OREO write-downs was due to an
increase in the valuation allowance for OREO attributable to the
re-valuation, due to re-zoning, of one existing property. The
increase in other expense was attributable to operating losses due
to a recent data breach that occurred at another company, and
impacted some of our customers. Our own systems were not
breached, however, we were responsible for reimbursing our
customers for these losses.
The $0.2 million decrease in non-interest
expense during the first quarter of 2016 as compared to the linked
quarter was primarily attributable to a $0.6 million decrease in
professional services, which was partially offset by increases of
$0.2 million in write-downs on OREO, and $0.1 million in salaries
and employee benefits costs. The linked quarter decline in
professional services expense is attributable to lower BSA/AML
related consulting costs, as well as lower legal costs. The
linked quarter increase in OREO write-downs was attributable to the
previously discussed re-valuation of an existing property.
The linked quarter increase in salaries and employee benefits costs
was attributable primarily to the reset of payroll tax accruals at
the beginning of 2016.
The following table illustrates the components
of professional services costs for the periods indicated:
|
For the
Three Months Ended |
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
(dollars in thousands) |
Professional Services |
|
BSA/AML related costs |
$ |
586 |
|
|
$ |
989 |
|
|
$ |
265 |
|
Information technology services and
consulting |
|
320 |
|
|
|
329 |
|
|
|
281 |
|
Audit and tax costs |
|
424 |
|
|
|
272 |
|
|
|
263 |
|
Legal costs |
|
- |
|
|
|
395 |
|
|
|
195 |
|
All other costs |
|
556 |
|
|
|
463 |
|
|
|
402 |
|
Total professional
services |
$ |
1,886 |
|
|
$ |
2,448 |
|
|
$ |
1,406 |
|
Operating Efficiency
The Company’s operating efficiency ratio
increased to 65.71% for the first quarter of 2016 as compared to
64.13% for the first quarter of 2015, and decreased from 68.58% for
the linked quarter. Total non-interest expense as a
percentage of average assets, another measure of the Company’s
efficiency, was 2.68% for the first quarter of 2016 compared to
2.75% for first quarter of 2015, and 2.70% for the quarter ended
December 31, 2015.
Income Taxes
Income tax expense was $2.4 million for the
quarter ended March 31, 2016 compared with $2.6 million for the
same period a year earlier. For the linked quarter ended
December 31, 2015 income tax expense was $1.9 million. The
Company’s effective tax rate for the first quarter of 2016 was
37.77% compared with 39.14% for the same period a year ago, and
35.71% for the quarter ended December 31, 2015.
Balance Sheet
Total assets increased by $136.5 million, or
7.7%, to $1.9 billion at March 31, 2016 compared to March 31, 2015,
and by $13.4 million, or 0.7%, compared to December 31, 2015.
Cash and cash equivalents decreased by $21.9 million, or 29.0%, to
$53.6 million at March 31, 2016 compared to March 31, 2015, and
decreased by $16.3 million, or 23.4%, compared to December 31,
2015. The decrease in the Company’s cash position over the
last year is primarily the result of deployment of cash inflows
from new deposits into the loan and investment securities
portfolios.
Investment securities increased by $77.2 million
or 21.2%, to $441.7 million at March 31, 2016 compared to $364.5
million at March 31, 2015, and decreased by $9.2 million, or 2.0%,
compared to $450.9 million at December 31, 2015. At March 31,
2016, the effective duration of the securities portfolio was 3.00
years. We currently target a 2.75 to 3.25 year effective
duration for the entire securities portfolio.
Total gross loans increased by $84.0 million, or
7.0%, to $1.3 billion at March 31, 2016 compared to March 31, 2015,
and by $44.1 million, or 3.5%, compared to December 31, 2015.
New loan production for the held for investment portfolio
(“portfolio loans”) was $87.8 million during the quarter ended
March 31, 2016, which was $6.3 million more than the prior quarter
reflecting a 7.7% increase. Utilization on lines of credit
contributed $11.3 million to first quarter 2016 loan growth.
Total deposits increased by $122.3 million, or
8.4%, to $1.58 billion as of March 31, 2016 from $1.46 billion at
March 31, 2015, and by $17.6 million, or 1.1%, from $1.56 billion
at December 31, 2015. Non-interest bearing deposits increased
by $9.5 million, or 1.8%, during the first quarter of 2016, and
increased by $39.9 million, or 8.2%, since March 31, 2015.
The deposit growth we have achieved over the last year is
attributable to our relationship building efforts. The
majority of the growth achieved over the last year came from
municipalities, public entities, and our commercial clients.
Total shareholders’ equity was $208.3 million at
March 31, 2016, an increase of $6.4 million, or 3.2%, compared to
March 31, 2015, and an increase of $1.9 million, or 0.9%, compared
to December 31, 2015, due primarily to quarterly earnings, net of
shareholder dividend payments and share repurchases. The
change in the unrealized gain in the securities portfolio led to an
increase in equity of $1.3 million, and a reduction of $0.4 million
during the past quarter, and year, respectively.
Classified assets at March 31, 2016 totaled
$43.6 million, and decreased by $1.7 million, or 3.8%, compared to
$45.3 million at December 31, 2015, and decreased by $8.0 million,
or 15.5%, from $51.6 million at March 31, 2015.
Non-performing assets were $8.3 million at March 31, 2016
compared to $8.1 million at December 31, 2015 representing a $0.2
million, or 1.6%, increase since the prior quarter, and a $4.0
million, or 32.6%, decline since March 31, 2015.
Non-performing assets remain at the lowest level reached in the
last several years, at 0.43% of total assets at March 31, 2016,
unchanged since December 31, 2015, and down from 0.69% at March 31,
2015.
Allowance for Loan and Lease
Losses
The allowance for loan and lease losses (“ALLL”)
as a percentage of gross loans declined from 1.40% at March 31,
2015 to 1.36% at March 31, 2016. The decline in the level of
our ALLL as a percentage of gross loans over the last twelve months
is due to the relatively stable credit profile of the Company,
which is evidenced by its asset quality ratios, as well as a
consistent trend of net loan recoveries during that time.
As of March 31, 2016, the portion of the ALLL
allocated to MISN acquired loans was $0.3 million or 0.19% of the
remaining acquired MISN loan portfolio. The remaining
un-accreted fair market value discount on MISN loans was $5.2
million at March 31, 2016 and represents 3.1% of the remaining
balance of MISN loans.
Due to continued heightened concerns regarding
the effects of the California drought upon our agribusiness loan
customers and related businesses, the Bank has provided a $1.7
million qualitative allocation in its ALLL to address these
concerns, which accounts for 9.4% of the total ALLL at March 31,
2016. Management will continue to monitor the drought as it
relates to our agribusiness customers and the local economy.
Regulatory Capital
The Bank’s regulatory capital ratios exceeded
the ratios generally required to be considered a “well capitalized”
financial institution for regulatory purposes. The Tier I
Leverage Ratios for the Company and the Bank were 9.86%, and 9.13%,
respectively, at March 31, 2016 compared with the requirement of
5.00% to generally be considered a “well capitalized” financial
institution for regulatory purposes. The Total Risk-Based
Capital Ratios for the Company and the Bank were 13.99%, and
13.05%, respectively, at March 31, 2016 compared with the
requirement of 10.00% to generally be considered a “well
capitalized” financial institution for regulatory purposes.
The Common Equity Tier 1 Capital Ratio for the Company and
the Bank were 12.23%, and 11.80%, respectively, at March 31, 2016
compared with the requirement of 6.5% to generally be considered a
"well capitalized" financial institution for regulatory
purposes. The Company’s regulatory capital ratios declined as
compared to the linked quarter due primarily to the impact of $2.1
million of quarterly shareholder dividend payments, and due to the
Company’s share repurchase program, which resulted in the
repurchase of over $1.6 million of the Company’s common stock
during the first quarter of 2016. The Bank’s regulatory
capital ratios declined as compared to the linked quarter primarily
due to a $10.0 million dividend payment made to the Company by the
Bank during the first quarter of 2016.
BSA Consent Order
The Company continued to make progress
addressing the issues identified in the BSA Consent Order that we
entered into with our regulators in November of 2014.
However, we still have more work to do in order to fully remediate
the issues identified in the BSA Consent Order.
Conference Call
The Company will host a conference call to
discuss the first quarter 2016 results at 8:00 a.m. PST on April
29, 2016. Media representatives, analysts and the public are
invited to listen to this discussion by calling (877) 363-5052 and
entering the conference ID 78951937, or via on-demand
webcast. A link to the webcast will be available on Heritage
Oaks Bancorp’s website at www.heritageoaksbancorp.com. A
replay of the call will be available on Heritage Oaks Bancorp's
website later that day and will remain on its site for up to 14
calendar days. By including the foregoing website address,
Heritage Oaks Bancorp does not intend to and shall not be deemed to
incorporate by reference any material contained therein.
Report on Form 10-Q
The Company intends to file with the U.S.
Securities and Exchange Commission its Quarterly Report on Form
10-Q for the quarter ended March 31, 2016 on or before May 15,
2016. Once filed, this report can be accessed at the U.S.
Securities and Exchange Commission’s website www.sec.gov.
Shortly after filing, it is also available free of charge at the
Company’s website www.heritageoaksbancorp.com or by contacting
Jason Castle, Chief Financial Officer. By including the
foregoing website addresses, Heritage Oaks Bancorp does not intend
to, and shall not be deemed to incorporate by reference any
material contained therein.
About Heritage Oaks Bancorp and Heritage
Oaks Bank
With $1.9 billion in assets, Heritage Oaks
Bancorp is headquartered in Paso Robles, California and is the
holding company for Heritage Oaks Bank. Heritage Oaks Bank
operates two branch offices each in Paso Robles and San Luis
Obispo; single branch offices in Atascadero, Templeton, Cambria,
Morro Bay, Arroyo Grande, Santa Maria, Goleta and Santa Barbara; as
well as a single loan production office in Ventura/Oxnard.
Heritage Oaks Bank conducts commercial banking business in
San Luis Obispo, Santa Barbara, and Ventura counties. Visit
Heritage Oaks Bank on the Web at www.heritageoaksbank.com. By
including the foregoing website address, Heritage Oaks Bancorp does
not intend to, and shall not be deemed to incorporate by reference
any material contained therein.
Forward Looking Statements
This press release contains “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. The Company intends such forward looking
statements to be covered by the safe harbor provisions for forward
looking statements. All statements other than statements of
historical fact are “forward looking statements” for purposes of
federal and state securities laws, including, but not limited to,
statements about anticipated future operating and financial
performance, financial position and liquidity, business prospects,
strategic alternatives, regulatory and competitive outlook,
investment and expenditure plans, capital and financing needs,
plans and objectives of management for future operations, and other
similar forecasts and statements of expectation and statements of
assumptions underlying any of the foregoing. Words such as “will
likely result,” “aims,” “anticipates,” “believes,” “could,”
“estimates,” “expects,” “hopes,” “intends,” “may,” “plans,”
“projects,” “seeks,” “should,” “will,” and variations of these
words and similar expressions are intended to help identify
forward-looking statements. Forward looking statements are based on
the Company’s current expectations and assumptions regarding its
business, the regulatory environment, the economy and other future
conditions, which expectations and assumptions could prove wrong.
Forward looking statements are subject to a number of risks and
uncertainties that could cause the Company’s actual results to
differ materially and adversely from those contemplated by the
forward looking statements. The Company cautions you against
relying on any of these forward looking statements. They are
neither statements of historical fact nor guarantees or assurances
of future performance. Important factors that could cause actual
results to differ materially from those in the forward looking
statements, include the following: renewed softness in the overall
economy, including the California real estate market; the effect of
the current low interest rate environment or changes in interest
rates on our net interest margin; changes in the Company’s business
strategy or development plans; our ability to attract and
retain qualified employees; a failure or breach of our operational
security systems or infrastructure or those of our customers, our
third party vendors or other service providers, including as a
result of a cyber-attack; any compromise in the secured
transmission of personal, financial and/or confidential information
over public networks; environmental conditions, including the
prolonged drought in California, natural disasters such as
earthquakes, landslides, and wildfires that may disrupt business,
impede operations, or negatively impact the ability of certain
borrowers to repay their loans and/or the values of collateral
securing loans; the possibility of an unfavorable ruling in a legal
matter, and the potential impact that it may have on earnings,
reputation, or the Bank’s operations; and the possibility that any
expansionary activities will be impeded while the FDIC’s and CA
DBO’s joint BSA Consent Order remains outstanding, and that we will
be unable to comply with the requirements set forth in the BSA
Consent Order, which could result in restrictions on our
operations.
Additional information on these risks and other
factors that could affect operating results and financial condition
are detailed in reports filed by the Company with the U.S.
Securities and Exchange Commission, including the Company’s Annual
Report on Form 10-K for the year ended December 31, 2015,
filed by the Company with the U.S. Securities and Exchange
Commission on March 4, 2016.
Forward looking statements speak only as of the
date they are made, and the Company does not undertake to update
forward looking statements to reflect circumstances or events that
occur after the date the forward looking statements are made,
whether as a result of new information, future developments or
otherwise, and specifically disclaims any obligation to revise or
update such forward looking statements for any reason, except as
may be required by law.
Use of Non-GAAP Financial
Information
The Company provides all information required in
accordance with generally accepted accounting principles (GAAP),
but it believes that evaluating its ongoing operating results and
in particular, making comparisons to similar companies, may be
enhanced by providing additional non-GAAP measures used by
management to assess operating results. Therefore, included
at the end of the tables below are the following schedules: a
schedule reconciling our GAAP net income to earnings before income
taxes, provision for loan and lease losses, investment securities
gains or losses, gain on extinguishment of debt, and merger,
restructure, and integration related costs; a schedule reconciling
book value to tangible common book value per share; a schedule
adjusting non-interest expense to exclude merger, restructure and
integration costs and expressing the adjusted noninterest expense
as a percentage of average assets; and a schedule adjusting the
efficiency ratio to exclude merger, restructure and integration
costs.
Heritage Oaks Bancorp |
|
Consolidated Balance Sheets |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
(dollars in thousands, except per share data) |
|
Assets |
|
|
|
|
|
|
Cash and due from banks |
$ |
14,804 |
|
|
$ |
15,610 |
|
|
$ |
14,743 |
|
|
Interest earning deposits in other
banks |
|
38,771 |
|
|
|
54,313 |
|
|
|
60,735 |
|
|
Total cash and cash
equivalents |
|
53,575 |
|
|
|
69,923 |
|
|
|
75,478 |
|
|
Investment securities available for
sale, at fair value |
|
441,705 |
|
|
|
450,935 |
|
|
|
364,498 |
|
|
Loans held for sale, at lower of
cost or fair value |
|
6,560 |
|
|
|
9,755 |
|
|
|
9,493 |
|
|
Gross loans held for
investment |
|
1,291,346 |
|
|
|
1,247,280 |
|
|
|
1,207,319 |
|
|
Net deferred loan fees |
|
(1,160 |
) |
|
|
(1,132 |
) |
|
|
(1,221 |
) |
|
Allowance for loan and lease
losses |
|
(17,565 |
) |
|
|
(17,452 |
) |
|
|
(16,913 |
) |
|
Net loans held for investment |
|
1,272,621 |
|
|
|
1,228,696 |
|
|
|
1,189,185 |
|
|
Premises and equipment, net |
|
36,843 |
|
|
|
37,342 |
|
|
|
38,107 |
|
|
Bank-owned life insurance |
|
33,069 |
|
|
|
32,850 |
|
|
|
24,871 |
|
|
Goodwill |
|
24,885 |
|
|
|
24,885 |
|
|
|
24,885 |
|
|
Deferred tax assets, net |
|
18,715 |
|
|
|
21,272 |
|
|
|
22,508 |
|
|
Federal Home Loan Bank stock |
|
7,853 |
|
|
|
7,853 |
|
|
|
7,853 |
|
|
Other intangible assets |
|
4,055 |
|
|
|
4,298 |
|
|
|
5,085 |
|
|
Premises held for sale |
|
- |
|
|
|
- |
|
|
|
1,840 |
|
|
Other assets |
|
13,239 |
|
|
|
11,930 |
|
|
|
12,791 |
|
|
Total assets |
$ |
1,913,120 |
|
|
$ |
1,899,739 |
|
|
$ |
1,776,594 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
524,025 |
|
|
$ |
514,559 |
|
|
$ |
484,106 |
|
|
Interest bearing deposits |
|
1,058,564 |
|
|
|
1,050,402 |
|
|
|
976,162 |
|
|
Total deposits |
|
1,582,589 |
|
|
|
1,564,961 |
|
|
|
1,460,268 |
|
|
Short term FHLB borrowing |
|
29,500 |
|
|
|
38,500 |
|
|
|
10,500 |
|
|
Long term FHLB borrowing |
|
73,512 |
|
|
|
65,021 |
|
|
|
83,054 |
|
|
Junior subordinated debentures |
|
10,485 |
|
|
|
10,438 |
|
|
|
13,286 |
|
|
Other liabilities |
|
8,704 |
|
|
|
14,385 |
|
|
|
7,543 |
|
|
Total liabilities |
|
1,704,790 |
|
|
|
1,693,305 |
|
|
|
1,574,651 |
|
|
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
Preferred stock, 5,000,000 shares authorized: |
|
|
|
|
|
|
Series C
preferred stock, $3.25 per share stated value; |
|
|
|
|
|
|
issued and outstanding: 0 shares
at March 31, 2016, December 31, 2015, and 348,697 shares at
March 31, 2015, respectively |
|
- |
|
|
|
- |
|
|
|
1,056 |
|
|
Common
stock, no par value; authorized: 100,000,000 shares; |
|
|
|
|
|
|
issued and outstanding: 34,129,425,
34,353,014 and 33,950,518 shares as of |
|
|
|
|
|
|
March
31, 2016, December 31, 2015, and March 31, 2015, respectively |
|
163,923 |
|
|
|
165,517 |
|
|
|
164,271 |
|
|
Additional paid in capital |
|
8,460 |
|
|
|
8,251 |
|
|
|
7,252 |
|
|
Retained earnings |
|
34,134 |
|
|
|
32,200 |
|
|
|
27,128 |
|
|
Accumulated other
comprehensive income |
|
1,813 |
|
|
|
466 |
|
|
|
2,236 |
|
|
Total shareholders' equity |
|
208,330 |
|
|
|
206,434 |
|
|
|
201,943 |
|
|
Total liabilities and
shareholders' equity |
$ |
1,913,120 |
|
|
$ |
1,899,739 |
|
|
$ |
1,776,594 |
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
6.10 |
|
|
$ |
6.01 |
|
|
$ |
5.92 |
|
|
|
|
|
|
|
|
|
Tangible book value per
common share |
$ |
5.26 |
|
|
$ |
5.16 |
|
|
$ |
5.03 |
|
|
|
|
|
|
|
|
|
Heritage Oaks Bancorp |
|
|
|
Consolidated Statements of
Income |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
Interest
Income |
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
14,615 |
|
|
$ |
15,145 |
|
|
$ |
15,088 |
|
|
|
|
Investment securities |
|
2,200 |
|
|
|
2,118 |
|
|
|
1,667 |
|
|
|
|
Other interest-earning assets |
|
200 |
|
|
|
201 |
|
|
|
173 |
|
|
|
|
Total interest income |
|
17,015 |
|
|
|
17,464 |
|
|
|
16,928 |
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
|
Deposits |
|
879 |
|
|
|
867 |
|
|
|
889 |
|
|
|
|
Other borrowings |
|
518 |
|
|
|
474 |
|
|
|
541 |
|
|
|
|
Total interest expense |
|
1,397 |
|
|
|
1,341 |
|
|
|
1,430 |
|
|
|
|
Net
interest income before provision for loan and lease losses |
|
15,618 |
|
|
|
16,123 |
|
|
|
15,498 |
|
|
|
|
Provision for loan and lease
losses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Net interest income
after provision for loan and lease losses |
|
15,618 |
|
|
|
16,123 |
|
|
|
15,498 |
|
|
|
|
Non-Interest
Income |
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,287 |
|
|
|
1,210 |
|
|
|
1,207 |
|
|
|
|
Gain on sale of investment
securities |
|
551 |
|
|
|
- |
|
|
|
505 |
|
|
|
|
Gain on derivative instruments |
|
532 |
|
|
|
- |
|
|
|
- |
|
|
|
|
Net gain on sale of mortgage
loans |
|
458 |
|
|
|
325 |
|
|
|
386 |
|
|
|
|
Earnings on BOLI |
|
287 |
|
|
|
215 |
|
|
|
211 |
|
|
|
|
Other mortgage fee income |
|
91 |
|
|
|
104 |
|
|
|
138 |
|
|
|
|
Other income |
|
201 |
|
|
|
207 |
|
|
|
554 |
|
|
|
|
Total non-interest income |
|
3,407 |
|
|
|
2,061 |
|
|
|
3,001 |
|
|
|
|
Non-Interest
Expense |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,318 |
|
|
|
6,171 |
|
|
|
6,259 |
|
|
|
|
Professional services |
|
1,886 |
|
|
|
2,448 |
|
|
|
1,406 |
|
|
|
|
Occupancy and equipment |
|
1,627 |
|
|
|
1,659 |
|
|
|
1,587 |
|
|
|
|
Information technology |
|
600 |
|
|
|
545 |
|
|
|
601 |
|
|
|
|
Regulatory assessments |
|
310 |
|
|
|
317 |
|
|
|
297 |
|
|
|
|
Sales and marketing |
|
244 |
|
|
|
165 |
|
|
|
317 |
|
|
|
|
Amortization of intangible
assets |
|
243 |
|
|
|
262 |
|
|
|
262 |
|
|
|
|
OREO Write-downs |
|
217 |
|
|
|
- |
|
|
|
- |
|
|
|
|
Loan department expense |
|
213 |
|
|
|
223 |
|
|
|
286 |
|
|
|
|
Communication costs |
|
125 |
|
|
|
127 |
|
|
|
141 |
|
|
|
|
Other expense |
|
838 |
|
|
|
857 |
|
|
|
657 |
|
|
|
|
Total non-interest expense |
|
12,621 |
|
|
|
12,774 |
|
|
|
11,813 |
|
|
|
|
Income before income
taxes |
|
6,404 |
|
|
|
5,410 |
|
|
|
6,686 |
|
|
|
|
Income tax expense |
|
2,419 |
|
|
|
1,932 |
|
|
|
2,617 |
|
|
|
|
Net
income |
$ |
3,985 |
|
|
$ |
3,478 |
|
|
$ |
4,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
34,096,379 |
|
|
|
34,186,007 |
|
|
|
34,107,168 |
|
|
|
|
Diluted |
|
34,204,457 |
|
|
|
34,326,702 |
|
|
|
34,266,482 |
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.12 |
|
|
$ |
0.10 |
|
|
$ |
0.12 |
|
|
|
|
Diluted |
$ |
0.12 |
|
|
$ |
0.10 |
|
|
$ |
0.12 |
|
|
|
|
Dividends Declared Per
Common Share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
Profitability /
Performance Ratios |
|
|
|
|
|
|
Net interest margin |
|
3.56 |
% |
|
|
3.67 |
% |
|
|
3.92 |
% |
|
Return on average equity |
|
7.66 |
% |
|
|
6.67 |
% |
|
|
8.26 |
% |
|
Return on average common
equity |
|
7.66 |
% |
|
|
6.67 |
% |
|
|
8.30 |
% |
|
Return on average tangible common
equity |
|
8.90 |
% |
|
|
7.77 |
% |
|
|
9.79 |
% |
|
Return on average assets |
|
0.85 |
% |
|
|
0.73 |
% |
|
|
0.95 |
% |
|
Non-interest income to total net
revenue |
|
17.91 |
% |
|
|
11.33 |
% |
|
|
16.22 |
% |
|
Yield on interest earning
assets |
|
3.88 |
% |
|
|
3.98 |
% |
|
|
4.28 |
% |
|
Cost of interest bearing
liabilities |
|
0.48 |
% |
|
|
0.47 |
% |
|
|
0.54 |
% |
|
Cost of funds |
|
0.34 |
% |
|
|
0.32 |
% |
|
|
0.38 |
% |
|
Operating efficiency ratio (1) |
|
65.71 |
% |
|
|
68.58 |
% |
|
|
64.13 |
% |
|
Non-interest expense to average
assets, annualized |
|
2.68 |
% |
|
|
2.70 |
% |
|
|
2.75 |
% |
|
Gross loans to total deposits |
|
81.60 |
% |
|
|
79.70 |
% |
|
|
82.68 |
% |
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
Non-performing loans to total gross
loans |
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.98 |
% |
|
Non-performing loans to equity |
|
3.92 |
% |
|
|
3.79 |
% |
|
|
5.87 |
% |
|
Non-performing assets to total
assets |
|
0.43 |
% |
|
|
0.43 |
% |
|
|
0.69 |
% |
|
Allowance for loan and lease losses
to total gross loans |
|
1.36 |
% |
|
|
1.40 |
% |
|
|
1.40 |
% |
|
Net recoveries to average loans
outstanding, annualized |
|
-0.04 |
% |
|
|
-0.05 |
% |
|
|
-0.04 |
% |
|
Classified assets to Tier I +
ALLL |
|
21.70 |
% |
|
|
22.68 |
% |
|
|
26.63 |
% |
|
30-89 day delinquency rate |
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
Company |
|
|
|
|
|
|
Common Equity Tier I Capital
Ratio |
|
12.23 |
% |
|
|
12.61 |
% |
|
|
12.50 |
% |
|
Leverage ratio |
|
9.86 |
% |
|
|
9.90 |
% |
|
|
10.38 |
% |
|
Tier I Risk-Based Capital
Ratio |
|
12.74 |
% |
|
|
13.01 |
% |
|
|
13.12 |
% |
|
Total Risk-Based Capital Ratio |
|
13.99 |
% |
|
|
14.26 |
% |
|
|
14.36 |
% |
|
Bank |
|
|
|
|
|
|
Common Equity Tier I Capital
Ratio |
|
11.80 |
% |
|
|
12.48 |
% |
|
|
12.65 |
% |
|
Leverage ratio |
|
9.13 |
% |
|
|
9.50 |
% |
|
|
10.01 |
% |
|
Tier I Risk-Based Capital
Ratio |
|
11.80 |
% |
|
|
12.48 |
% |
|
|
12.65 |
% |
|
Total Risk-Based Capital Ratio |
|
13.05 |
% |
|
|
13.74 |
% |
|
|
13.90 |
% |
|
|
(1) The efficiency ratio is defined as total non-interest
expense as a percentage of the combined: net interest income,
non-interest income, excluding gains and losses on the sale of
securities, gains and losses on the sale of other real estate owned
(“OREO”), write-downs on OREO, OREO related costs, gains and losses
on the sale of fixed assets, gains on extinguishment of debt, and
amortization of intangible assets. |
Heritage Oaks Bancorp |
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three Months Ended |
|
|
|
3/31/2016 |
12/31/2015 |
3/31/2015 |
|
|
|
Balance |
Yield / Rate (4) |
Income / Expense |
Balance |
Yield / Rate (4) |
Income / Expense |
Balance |
Yield / Rate (4) |
Income / Expense |
|
|
|
(dollars in thousands) |
|
|
Interest
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
Loans (1) (2) |
$ |
1,258,180 |
|
|
4.67 |
% |
$ |
14,615 |
|
$ |
1,221,144 |
|
|
4.92 |
% |
$ |
15,145 |
|
$ |
1,195,265 |
|
|
5.12 |
% |
$ |
15,088 |
|
|
|
Investment securities |
|
448,723 |
|
|
1.97 |
% |
|
2,200 |
|
|
444,644 |
|
|
1.89 |
% |
|
2,118 |
|
|
353,222 |
|
|
1.91 |
% |
|
1,667 |
|
|
|
Interest earning deposits in other
banks |
|
46,342 |
|
|
0.31 |
% |
|
36 |
|
|
67,231 |
|
|
0.24 |
% |
|
40 |
|
|
47,209 |
|
|
0.18 |
% |
|
21 |
|
|
|
Other investments |
|
9,739 |
|
|
6.77 |
% |
|
164 |
|
|
9,739 |
|
|
6.56 |
% |
|
161 |
|
|
9,739 |
|
|
6.33 |
% |
|
152 |
|
|
|
Total earning assets |
|
1,762,984 |
|
|
3.88 |
% |
|
17,015 |
|
|
1,742,758 |
|
|
3.98 |
% |
|
17,464 |
|
|
1,605,435 |
|
|
4.28 |
% |
|
16,928 |
|
|
|
Allowance for loan and lease
losses |
|
(17,513 |
) |
|
|
|
(17,451 |
) |
|
|
|
(16,861 |
) |
|
|
|
|
Other assets |
|
149,211 |
|
|
|
|
152,605 |
|
|
|
|
151,912 |
|
|
|
|
|
Total assets |
$ |
1,894,682 |
|
|
|
$ |
1,877,912 |
|
|
|
$ |
1,740,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Money market |
$ |
568,497 |
|
|
0.28 |
% |
$ |
392 |
|
$ |
552,791 |
|
|
0.27 |
% |
$ |
377 |
|
$ |
464,076 |
|
|
0.28 |
% |
$ |
318 |
|
|
|
Time deposits |
|
243,940 |
|
|
0.70 |
% |
|
426 |
|
|
249,133 |
|
|
0.68 |
% |
|
430 |
|
|
278,645 |
|
|
0.75 |
% |
|
517 |
|
|
|
Interest bearing demand |
|
126,373 |
|
|
0.11 |
% |
|
34 |
|
|
123,529 |
|
|
0.11 |
% |
|
33 |
|
|
115,928 |
|
|
0.11 |
% |
|
31 |
|
|
|
Savings |
|
110,244 |
|
|
0.10 |
% |
|
27 |
|
|
107,049 |
|
|
0.10 |
% |
|
27 |
|
|
94,557 |
|
|
0.10 |
% |
|
23 |
|
|
|
Total interest bearing
deposits |
|
1,049,054 |
|
|
0.34 |
% |
|
879 |
|
|
1,032,502 |
|
|
0.33 |
% |
|
867 |
|
|
953,206 |
|
|
0.38 |
% |
|
889 |
|
|
|
Federal Home Loan Bank
borrowing |
|
111,913 |
|
|
1.38 |
% |
|
384 |
|
|
81,204 |
|
|
1.70 |
% |
|
347 |
|
|
100,034 |
|
|
1.62 |
% |
|
400 |
|
|
|
Junior subordinated debentures |
|
10,455 |
|
|
5.08 |
% |
|
132 |
|
|
10,407 |
|
|
4.84 |
% |
|
127 |
|
|
13,252 |
|
|
4.32 |
% |
|
141 |
|
|
|
Other borrowed funds |
|
220 |
|
|
3.66 |
% |
|
2 |
|
|
- |
|
|
0.00 |
% |
|
- |
|
|
- |
|
|
0.00 |
% |
|
- |
|
|
|
Federal funds purchased |
|
- |
|
|
0.00 |
% |
|
- |
|
|
33 |
|
|
0.90 |
% |
|
- |
|
|
- |
|
|
0.00 |
% |
|
- |
|
|
|
Total borrowed funds |
|
122,588 |
|
|
1.70 |
% |
|
518 |
|
|
91,644 |
|
|
2.05 |
% |
|
474 |
|
|
113,286 |
|
|
1.94 |
% |
|
541 |
|
|
|
Total interest bearing
liabilities |
|
1,171,642 |
|
|
0.48 |
% |
|
1,397 |
|
|
1,124,146 |
|
|
0.47 |
% |
|
1,341 |
|
|
1,066,492 |
|
|
0.54 |
% |
|
1,430 |
|
|
|
Non interest bearing demand |
|
503,953 |
|
|
|
|
537,364 |
|
|
|
|
464,455 |
|
|
|
|
|
Total funding |
|
1,675,595 |
|
|
0.34 |
% |
|
1,397 |
|
|
1,661,510 |
|
|
0.32 |
% |
|
1,341 |
|
|
1,530,947 |
|
|
0.38 |
% |
|
1,430 |
|
|
|
Other liabilities |
|
9,954 |
|
|
|
|
9,556 |
|
|
|
|
9,732 |
|
|
|
|
|
Total liabilities |
|
1,685,549 |
|
|
|
|
1,671,066 |
|
|
|
|
1,540,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
209,133 |
|
|
|
|
206,846 |
|
|
|
|
199,807 |
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
1,894,682 |
|
|
|
$ |
1,877,912 |
|
|
|
$ |
1,740,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (3) |
|
|
3.56 |
% |
$ |
15,618 |
|
|
|
3.67 |
% |
$ |
16,123 |
|
|
|
3.92 |
% |
$ |
15,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
3.40 |
% |
|
|
|
3.51 |
% |
|
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of deposits |
|
|
0.23 |
% |
|
|
|
0.22 |
% |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-accrual loans have been included in total loans. |
|
|
(2)
Interest income includes fees on loans. |
|
|
(3) Net
interest margin represents net interest income as a percentage of
average interest earning assets. |
|
|
(4)
Annualized using actual number of days during the
period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage Oaks Bancorp |
Loans and Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
(dollars in thousands) |
Loans |
|
|
|
|
|
Real Estate
Secured |
|
|
|
|
|
Commercial |
$ |
605,242 |
|
|
$ |
579,244 |
|
|
$ |
575,536 |
|
Residential 1 to 4 family |
|
171,035 |
|
|
|
165,829 |
|
|
|
143,490 |
|
Farmland |
|
129,787 |
|
|
|
120,566 |
|
|
|
108,779 |
|
Multi-family residential |
|
81,807 |
|
|
|
79,381 |
|
|
|
77,684 |
|
Construction and land |
|
32,984 |
|
|
|
35,669 |
|
|
|
47,620 |
|
Home equity lines of credit |
|
29,738 |
|
|
|
31,387 |
|
|
|
35,928 |
|
Total real estate secured |
|
1,050,593 |
|
|
|
1,012,076 |
|
|
|
989,037 |
|
Commercial |
|
|
|
|
|
Commercial and industrial |
|
169,366 |
|
|
|
164,808 |
|
|
|
146,912 |
|
Agriculture |
|
65,946 |
|
|
|
64,363 |
|
|
|
64,150 |
|
Other |
|
- |
|
|
|
- |
|
|
|
5 |
|
Total
commercial |
|
235,312 |
|
|
|
229,171 |
|
|
|
211,067 |
|
Consumer |
|
5,441 |
|
|
|
6,033 |
|
|
|
7,215 |
|
Total loans held for
investment |
|
1,291,346 |
|
|
|
1,247,280 |
|
|
|
1,207,319 |
|
Deferred loan fees |
|
(1,160 |
) |
|
|
(1,132 |
) |
|
|
(1,221 |
) |
Allowance for loan and lease
losses |
|
(17,565 |
) |
|
|
(17,452 |
) |
|
|
(16,913 |
) |
Total net loans held for
investment |
$ |
1,272,621 |
|
|
$ |
1,228,696 |
|
|
$ |
1,189,185 |
|
Loans held for sale |
$ |
6,560 |
|
|
$ |
9,755 |
|
|
$ |
9,493 |
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
(dollars in thousands) |
Deposits |
|
|
|
|
|
Non-interest bearing deposits |
$ |
524,025 |
|
|
$ |
514,559 |
|
|
$ |
484,106 |
|
Interest bearing deposits: |
|
|
|
|
|
Money market deposits |
|
579,113 |
|
|
|
565,060 |
|
|
|
490,986 |
|
Time deposits |
|
240,245 |
|
|
|
245,742 |
|
|
|
272,055 |
|
NOW accounts |
|
127,731 |
|
|
|
129,254 |
|
|
|
118,094 |
|
Other savings deposits |
|
111,475 |
|
|
|
110,346 |
|
|
|
95,027 |
|
Total deposits |
$ |
1,582,589 |
|
|
$ |
1,564,961 |
|
|
$ |
1,460,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage Oaks Bancorp |
|
Allowance for Loan and Lease Losses,
Non-Performing and Classified Assets |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Allowance for
Loan and Lease Losses |
|
|
|
|
|
|
|
Balance, beginning of
period |
|
$ |
17,452 |
|
|
$ |
17,296 |
|
|
$ |
16,802 |
|
|
Provision for loan and lease
losses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Charge-offs: |
|
|
|
|
|
|
|
Commercial and industrial |
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
Consumer |
|
|
2 |
|
|
|
1 |
|
|
|
- |
|
|
Residential 1 to 4 family |
|
|
- |
|
|
|
82 |
|
|
|
- |
|
|
Commercial real estate |
|
|
- |
|
|
|
81 |
|
|
|
- |
|
|
Agriculture |
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
Home equity lines of
credit |
|
|
- |
|
|
|
- |
|
|
|
39 |
|
|
Construction and land |
|
|
- |
|
|
|
- |
|
|
|
34 |
|
|
Total charge-offs |
|
|
10 |
|
|
|
167 |
|
|
|
73 |
|
|
Recoveries of loans previously
charged-off |
|
|
123 |
|
|
|
323 |
|
|
|
184 |
|
|
Balance, end of
period |
|
$ |
17,565 |
|
|
$ |
17,452 |
|
|
|
|
$ |
16,913 |
|
|
|
|
|
|
|
|
|
|
Net recoveries |
|
$ |
(113 |
) |
|
$ |
(156 |
) |
|
$ |
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Non-Performing
Assets |
|
|
|
|
|
|
|
Loans on non-accrual status: |
|
|
|
|
|
|
|
Construction and land |
|
$ |
4,264 |
|
|
$ |
3,968 |
|
|
$ |
4,939 |
|
|
Commercial and industrial |
|
|
1,745 |
|
|
|
1,630 |
|
|
|
3,495 |
|
|
Commercial real estate |
|
|
1,620 |
|
|
|
1,940 |
|
|
|
2,052 |
|
|
Agriculture |
|
|
384 |
|
|
|
- |
|
|
|
627 |
|
|
Farmland |
|
|
80 |
|
|
|
83 |
|
|
|
- |
|
|
Home equity lines of credit |
|
|
46 |
|
|
|
84 |
|
|
|
46 |
|
|
Consumer |
|
|
31 |
|
|
|
33 |
|
|
|
43 |
|
|
Residential 1 to 4 family |
|
|
- |
|
|
|
80 |
|
|
|
645 |
|
|
Total non-accruing loans |
|
|
8,170 |
|
|
|
7,818 |
|
|
|
11,847 |
|
|
Other real estate owned (OREO) |
|
|
111 |
|
|
|
|
|
328 |
|
|
|
|
|
433 |
|
|
Total non-performing
assets |
|
$ |
8,281 |
|
|
$ |
8,146 |
|
|
$ |
12,280 |
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Classified
Assets |
|
|
|
|
|
|
|
Loans |
|
$ |
43,444 |
|
|
$ |
44,950 |
|
|
$ |
51,139 |
|
|
Other real estate owned (OREO) |
|
|
111 |
|
|
|
328 |
|
|
|
433 |
|
|
Non-investment grade
securities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total classified assets |
|
$ |
43,555 |
|
|
|
|
$ |
45,278 |
|
|
$ |
51,572 |
|
|
|
|
|
|
|
|
|
|
Classified assets to Tier I + ALLL |
|
|
21.70 |
% |
|
|
22.68 |
% |
|
|
26.63 |
% |
|
|
|
|
|
|
|
|
|
Heritage Oaks Bancorp |
|
Quarter to Date Non-Performing Loan
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance |
|
|
|
|
|
Returns to |
|
|
|
Balance |
|
|
December 31, |
|
|
|
Net |
|
Accrual |
|
|
|
March 31, |
|
|
|
2015 |
|
|
Additions |
|
Paydowns |
|
Status |
|
Charge-offs |
|
|
2016 |
|
|
|
(dollars in thousands) |
|
Real Estate
Secured |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land |
$ |
3,968 |
|
|
$ |
349 |
|
|
$ |
(53 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
4,264 |
|
|
Commercial |
|
1,940 |
|
|
|
- |
|
|
|
(30 |
) |
|
|
(290 |
) |
|
|
- |
|
|
|
1,620 |
|
|
Farmland |
|
83 |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
|
80 |
|
|
Home equity lines of credit |
|
84 |
|
|
|
- |
|
|
|
- |
|
|
|
(38 |
) |
|
|
- |
|
|
|
46 |
|
|
Residential 1 to 4 family |
|
80 |
|
|
|
- |
|
|
|
(3 |
) |
|
|
(77 |
) |
|
|
- |
|
|
|
- |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
1,630 |
|
|
|
1,248 |
|
|
|
(147 |
) |
|
|
(978 |
) |
|
|
(8 |
) |
|
|
1,745 |
|
|
Agriculture |
|
- |
|
|
|
400 |
|
|
|
(16 |
) |
|
|
- |
|
|
|
- |
|
|
|
384 |
|
|
Consumer |
|
33 |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
(2 |
) |
|
|
31 |
|
|
Total |
$ |
7,818 |
|
|
$ |
1,999 |
|
|
$ |
(254 |
) |
|
$ |
(1,383 |
) |
|
$ |
(10 |
) |
|
$ |
8,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage Oaks Bancorp |
|
Reconciliation of GAAP to Non-GAAP Financial
Measure |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
GAAP net
income |
$ |
3,985 |
|
|
$ |
3,478 |
|
|
$ |
4,069 |
|
|
Adjusted
for: |
|
|
|
|
|
|
Income tax expense |
|
2,419 |
|
|
|
1,932 |
|
|
|
2,617 |
|
|
(Gain) on sale of investment securities |
|
(551 |
) |
|
|
- |
|
|
|
(505 |
) |
|
Merger, restructure and integration |
|
2 |
|
|
|
(10 |
) |
|
|
32 |
|
|
Non-GAAP earnings before
income taxes, gains on sale of |
|
|
|
|
|
|
|
|
|
|
|
|
|
investment securities,
gains on extinguishment of debt, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
merger, restructure and
integration costs |
|
$ |
5,855 |
|
|
$ |
5,400 |
|
|
$ |
6,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Non-interest expense |
$ |
12,621 |
|
|
$ |
12,774 |
|
|
$ |
11,813 |
|
|
Less:
Merger, restructure and integration |
|
(2 |
) |
|
|
10 |
|
|
|
(32 |
) |
|
Adjusted
non-interest expense |
|
12,619 |
|
|
|
12,784 |
|
|
|
11,781 |
|
|
Total
average assets |
|
1,894,682 |
|
|
|
1,877,912 |
|
|
|
1,740,486 |
|
|
Non-interest
expense to average assets |
|
|
|
|
|
|
less merger,
restructure and integration costs |
|
2.68 |
% |
|
|
2.70 |
% |
|
|
2.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Non-interest expense |
$ |
12,621 |
|
|
$ |
12,774 |
|
|
$ |
11,813 |
|
|
Less: OREO
related costs and writedowns |
|
(238 |
) |
|
|
(31 |
) |
|
|
(11 |
) |
|
Less:
Amortization of CDI |
|
(243 |
) |
|
|
(262 |
) |
|
|
(262 |
) |
|
Less:
Merger, restructure and integration |
|
(2 |
) |
|
|
10 |
|
|
|
(32 |
) |
|
Adjusted
non-interest expense |
|
12,138 |
|
|
|
12,491 |
|
|
|
11,508 |
|
|
Net
interest income |
|
15,618 |
|
|
|
16,123 |
|
|
|
15,498 |
|
|
Non-interest income |
|
3,407 |
|
|
|
2,061 |
|
|
|
3,001 |
|
|
Less: net
(gains) losses |
|
(551 |
) |
|
|
14 |
|
|
|
(505 |
) |
|
Operating
efficiency less merger, restructure
and |
|
|
|
|
|
|
integration
costs |
|
65.70 |
% |
|
|
68.64 |
% |
|
|
63.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
3/31/2016 |
|
12/31/2015 |
|
3/31/2015 |
|
|
|
(dollars in thousands) |
|
Total
shareholders' equity |
$ |
208,330 |
|
|
$ |
206,434 |
|
|
$ |
201,943 |
|
|
Less:
Series C Preferred Stock |
|
- |
|
|
|
- |
|
|
|
(1,056 |
) |
|
Less:
Intangibles |
|
(28,940 |
) |
|
|
(29,183 |
) |
|
|
(29,970 |
) |
|
Tangible
common equity |
$ |
179,390 |
|
|
$ |
177,251 |
|
|
$ |
170,917 |
|
|
Tangible common
book value per share |
$ |
5.26 |
|
|
$ |
5.16 |
|
|
$ |
5.03 |
|
|
|
|
|
|
|
|
|
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Contacts
Simone Lagomarsino, President & Chief Executive Officer
1222 Vine Street
Paso Robles, California 93446
805.369.5260
slagomarsino@heritageoaksbank.com
Jason Castle, Executive Vice President & Chief Financial Officer
1222 Vine Street
Paso Robles, California 93446
805.369.5294
jcastle@heritageoaksbank.com
Heritage Oaks Bancorp (NASDAQ:HEOP)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Heritage Oaks Bancorp (NASDAQ:HEOP)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024