Reliant Bancorp, Inc. Reports First Quarter 2021 Results

April 22, 2021 4:05 PM EDT

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Reported Net Income of $12.1 million, or Diluted EPS of $0.73

Net Interest Margin Continues to Improve to 4.51%

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) (Nasdaq: RBNC), parent company of Reliant Bank (the “Bank”), reported net income attributable to common shareholders of $12.1 million, or $0.73 per diluted common share, for the first quarter of 2021 compared to net income attributable to common shareholders of $12.2 million, or $0.73 per diluted common share, for the fourth quarter of 2020, and a loss of $0.2 million, or $0.02 per diluted common share, for the first quarter of 2020.

DeVan Ard, Jr., Reliant Bancorp's Chairman and CEO stated, “I am very pleased with our first quarter earnings, which were driven by a strong and improving net interest margin, superior asset quality, and good expense control. Nashville’s economy also started showing signs of a robust recovery late in the quarter as evidenced by a significant increase in loan demand.”

Ard continued, “Our team delivered another outstanding quarter. Loan production topped $253.6 million, a 69% increase over the first quarter of 2020, and many of those loans will fund throughout 2021. Deposit growth was also strong. Balances in non-time deposits - checking, savings, and money market deposits - grew 8.1%, or 32.7% annualized, during the first quarter, a tribute to the effort by our team to build lasting relationships with our customers. We also continued to build shareholder value. Our book value and tangible book value per share increased 3.1% and 4.0%, respectively, from the prior quarter, or 12.4% and 16.1%, respectively, when annualized. Reliant's board also voted to increase our cash dividend per share by 20.0%.”

First Quarter Highlights
Dollar Amounts in Thousands, Except Per Share Amounts

 

2021

 

2020

 

First Quarter

 

Fourth Quarter

 

First Quarter

Results of Operations Highlights

 

 

 

 

 

Net income (loss) attributable to common shareholders

$

12,149

 

 

$

12,226

 

 

$

(215

)

Income (loss) per diluted common share

$

0.73

 

 

$

0.73

 

 

$

(0.02

)

Net interest margin (NIM) (1)

4.51

%

 

4.48

%

 

3.60

%

Adjusted NIM (2)

4.24

%

 

4.09

%

 

3.46

%

Adjusted pre-tax pre-provision income (2)

$

15,699

 

 

$

17,278

 

 

$

799

 

Efficiency ratio (tax equivalent basis)

56.4

%

 

53.2

%

 

92.9

%

Bank segment adjusted efficiency ratio (2)

50.8

%

 

47.2

%

 

65.0

%

 

 

 

 

 

 

Balance Sheet Highlights

 

 

 

 

 

Loans

$

2,277,714

 

 

$

2,300,783

 

 

$

1,619,445

 

Allowance for loan losses

(20,785

)

 

(20,636

)

 

(15,121

)

Total assets

3,057,066

 

 

3,026,535

 

 

2,185,793

 

Total deposits

2,612,910

 

 

2,579,235

 

 

1,722,857

 

Book value per share

$

19.92

 

 

$

19.33

 

 

$

19.53

 

Tangible book value per share (2)

$

16.00

 

 

$

15.39

 

 

$

14.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average: (3)

 

 

 

 

 

Assets ("ROAA")

1.64

%

 

1.60

%

 

(0.04

)%

Equity ("ROAE")

15.07

%

 

15.48

%

 

(0.36

)%

Tangible common equity ("ROATCE") (2)

18.84

%

 

19.38

%

 

(0.49

)%

(1)

Net interest margin is the result of annualized net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period.

(2)

 

Certain measures are considered non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures.”

(3)

 

Data has been annualized.

 

Net Interest Income Remains Strong on Continued Core Margin Improvement

The net interest margin increased to 4.51% at March 31, 2021, an increase of 3 basis points from the fourth quarter of 2020 and an increase of 91 basis points from the first quarter of 2020. The linked quarter increase was primarily due to a 5 basis point decrease in our cost of funds. The adjusted net interest margin, which excludes benefits from purchase accounting accretion, was 4.24%, an increase of 15 basis points from the fourth quarter of 2020 and an increase of 78 basis points from the first quarter of 2020.

Ard continued, “Our strong adjusted net income margin in the first quarter follows a similarly strong performance in the prior quarter which reflects the hard work of our team through a challenging season and which we will continue to work on in 2021 as economic conditions begin to look brighter.”

While loan yields remain consistent with the linked quarter at 5.63%, yields from coupon and fees increased 6 basis points from the prior quarter whereas yields related to purchase accounting declined as purchase accounting accretion decreased $244 thousand when compared to the prior quarter.

Cost of funds benefited from prepayment of $16.5 million in Federal Home Loan Bank advances in the fourth quarter of 2020 which contributed to a decrease in cost of borrowed funds of 33 basis points. The cost of deposits remained consistent with the linked quarter at 0.51% despite a reduction in purchase accounting accretion of $635.9 thousand. These low costs can primarily be attributed to our continued success in the execution of our strategic initiatives around attracting and retaining core deposits. At March 31, 2021, customer deposits comprised 89.9% of total deposits compared to 87.8% of total deposits at December 31, 2020, and non-time deposits grew by $143.6 million, or 8.1%, in the same period.

Maintaining a Strong Balance Sheet

Loans remained stable at $2.3 billion. Loan originations during the quarter totaled $253.6 million at a weighted-average coupon rate of 4.21% with a continued focus on credit quality through sound underwriting. These originations were offset with principal payments, including PPP forgiveness payments of $23.6 million. Loans increased $552 thousand from the prior quarter when PPP loans are excluded. Loans increased $658.3 million year-over-year which can largely be attributed to the loan portfolio acquired on April 1, 2020, from First Advantage Bank, which totaled $526.0 million at March 31, 2021. Organic year-over-year loan growth totaled $132.2 million, or 8.2%.

Deposits increased $33.7 million from the linked quarter and $890.1 million year-over-year. Noninterest-bearing deposits increased $3.5 million from the linked quarter. Year-over-year deposit growth can be attributed primarily to the acquired deposit portfolio from First Advantage Bank which totaled $509.2 million at March 31, 2021. Organic year-over-year deposit growth totaled $380.8 million, or 22.1%. Ard stated, “Our team continues to attract and retain low cost deposits in a competitive environment, fulfilling one of our strategic goals and helping us to better serve the community's credit needs.”

Asset Quality Remains Stable and Capital Well Positioned

Our credit quality continues to be a source of strength with net recoveries in the first quarter and criticized assets to total loans of 0.90%. Nonperforming loans held for investment accounted for 0.27% of total loans held for investment and nonperforming assets accounted for 0.32% of total assets at March 31, 2021. The allowance for loan loss was 0.91% of loans (1.56% including unaccreted purchased loan discounts) at March 31, 2021. There was no provision recognized during the quarter as net charge-offs were in a recovery position for the quarter and larger provisions were recorded in prior quarters related to uncertainty surrounding the COVID-19 pandemic. The acquired loan portfolios are reserved for through fair value marks that consider both credit quality and changes in interest rates.

Shareholders’ equity increased $9.7 million from the linked quarter to $331.7 million at March 31, 2021, mainly due to current quarter net income. Both the Company and the Bank continue to meet the criteria to be classified as “Well Capitalized” under applicable banking regulations. Our current level of tangible common equity to tangible assets of 8.90% positions us for further growth opportunities and allows us to execute our heightened cash dividend in the near term.

Conclusion

Ard concluded, “I am proud of what our team accomplished in the first quarter as well as their resiliency and dedication to serve our community. We continue to see increased demand in the loan pipeline as we move into the second quarter and we are optimistic about our market and financial positions as we continue to build a bright future for Reliant Bank.”

Conference Call Information

The Company will hold a conference call to discuss first quarter 2021 results on Friday, April 23, 2021, at 9:00 a.m. CDT, and the earnings conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1855/40669. A link to these events can be found on the Company’s website (https://www.reliantbank.com) under the tab titled “Investor Relations.”

Following the live broadcast, a webcast replay will be available on the Company's website (https://www.reliantbank.com) under the tab titled “Investor Relations” followed by the tab titled “News & Market Information” followed by the tab titled “Event Calendar” followed by the tab titled “Past Events” and will be available for 12 months.

About Reliant Bancorp, Inc. and Reliant Bank

Reliant Bancorp, Inc. is a Brentwood, Tennessee-based financial holding company which, through its wholly owned subsidiary Reliant Bank, operates banking centers in Tennessee. Reliant Bank is a full-service commercial bank that offers a variety of deposit, lending, and mortgage products and services to business and consumer customers. As of March 31, 2021, Reliant Bancorp had approximately $3.1 billion in total consolidated assets, approximately $2.3 billion in loans held for investment and approximately $2.6 billion in deposits. For additional information, locations and hours of operation, please visit www.reliantbank.com.

Financial Measures

This release contains certain financial measures that are not measures recognized under generally accepted accounting principles

(“GAAP”) and, therefore, are considered non-GAAP financial measures. Members of Company management use these non-GAAP financial measures in their analysis of the Company’s performance, financial condition, and efficiency of operations. Management of the Company believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods, and demonstrate the effects of significant gains and charges in the periods presented. Management of the Company also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding underlying operating performance and identifying and analyzing ongoing operating trends. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the non-GAAP financial measures discussed herein are calculated may differ from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their financial measures similar to, or with names similar to, the non-GAAP financial measures we have discussed herein when comparing such non-GAAP financial measures.

The non-GAAP measures in this release include “adjusted net interest margin (NIM),” “adjusted net income,” “adjusted diluted earnings per share (EPS),” “adjusted annualized return on average assets (ROAA),” “adjusted annualized return on average equity (ROAE),” “adjusted annualized return on average tangible common equity (ROATCE),” “adjusted pre-tax pre-provision income,” “tangible common equity to tangible assets (TCE/TA),” “tangible book value per share,” “allowance for loan losses plus unaccreted purchased loan discounts to total loans,” “bank segment adjusted net income,” and “bank segment adjusted efficiency ratio.”

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 statements made during 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 improving economic conditions, the Company’s growth opportunities, the Company’s ability to pay the increased cash dividend, increased demand in the loan pipeline, and management’s optimism about the Company’s market and financial positions. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the Company’s future financial and operating results and the Company’s plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others: (1) the effects of the coronavirus (COVID-19) pandemic, including (i) the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business, results of operations, and financial condition and that of our customers, (ii) actions taken by governments, businesses and individuals in response to the coronavirus (COVID-19) pandemic, (iii) the pace of recovery when the coronavirus (COVID-19) pandemic subsides, and (iv) the speed with which coronavirus (COVID-19) vaccines can be widely distributed, those vaccines’ efficacy against the virus and public acceptance of the vaccines, (2) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (3) increased levels of other real estate, primarily as a result of foreclosures, (4) the impact of liquidity needs on our results of operations and financial condition, (5) competition from financial institutions and other financial service providers, (6) the effect of interest rate increases on the cost of deposits, (7) unanticipated weakness in loan demand or loan pricing, (8) greater than anticipated adverse conditions in the national economy or local economies in which we operate, including in Middle Tennessee, (9) lack of strategic growth opportunities or our failure to execute on available opportunities, (10) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (11) economic crises and associated credit issues in industries most impacted by the coronavirus (COVID-19) pandemic, including the hotel and retail sectors, (12) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (13) our ability to effectively manage problem credits, (14) our ability to successfully implement efficiency initiatives on time and with the results projected, (15) our ability to successfully develop and market new products and technology, (16) the impact of negative developments in the financial industry and United States and global capital and credit markets, (17) our ability to retain the services of key personnel, (18) our ability to adapt to technological changes, (19) risks associated with litigation, including reputational and financial risks and the applicability of insurance coverage, (20) the vulnerability of the Bank’s computer and information technology systems and networks, and the systems and networks of third parties with whom the Company or the Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches and interruptions, (21) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (22) adverse impacts (including costs, fines, reputational harm, or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, (23) the risk of successful integration of the businesses the Company has recently acquired, and (24) 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
(Dollar amounts in thousands, except per share amounts)

 

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

ASSETS

(Unaudited)

 

(Audited)

 

(Unaudited)

Cash and due from banks

$

13,105

 

$

13,717

 

$

10,917

Interest-bearing deposits in financial institutions

104,620

 

79,756

 

35,401

Federal funds sold

186

 

1,572

 

1,714

Total cash and cash equivalents

117,911

 

95,045

 

48,032

Securities available for sale

267,191

 

256,653

 

256,928

Loans

2,277,714

 

2,300,783

 

1,619,445

Less: allowance for loan losses

(20,785)

 

(20,636)

 

(15,121)

Loans, net

2,256,929

 

2,280,147

 

1,604,324

Mortgage loans held for sale, net

166,599

 

147,524

 

70,352

Accrued interest receivable

14,568

 

14,889

 

7,622

Premises and equipment, net

30,879

 

31,462

 

27,326

Operating leases right of use assets

13,372

 

13,103

 

11,473

Restricted equity securities, at cost

16,146

 

16,551

 

14,405

Other real estate, net

1,198

 

1,246

 

Cash surrender value of life insurance contracts

78,423

 

77,988

 

52,556

Deferred tax assets, net

7,453

 

7,121

 

5,485

Goodwill

54,396

 

54,396

 

50,723

Core deposit intangibles

10,891

 

11,347

 

10,486

Other assets

21,110

 

19,063

 

26,081

TOTAL ASSETS

$

3,057,066

 

$

3,026,535

 

$

2,185,793

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest-bearing demand

$

578,764

 

$

575,289

 

$

320,553

Interest-bearing demand

397,047

 

350,392

 

170,304

Savings and money market deposit accounts

950,630

 

857,210

 

494,750

Time

686,469

 

796,344

 

737,250

Total deposits

2,612,910

 

2,579,235

 

1,722,857

Accrued interest payable

3,087

 

2,571

 

3,995

Subordinated debentures

70,719

 

70,446

 

70,391

Federal Home Loan Bank advances

 

10,000

 

127,628

Operating leases liabilities

14,552

 

14,231

 

11,761

Other liabilities

24,099

 

28,079

 

14,489

TOTAL LIABILITIES

2,725,367

 

2,704,562

 

1,951,121

Preferred stock, $1 par value per share; 10,000,000 shares authorized; no shares issued to date

 

 

Common stock, $1 par value per share; 30,000,000 shares authorized; 16,654,415, 16,654,409, and 12,014,495 shares issued and outstanding at March 31, 2021, December 31, 2020, and March 31, 2020, respectively

16,654

 

16,654

 

12,014

Additional paid-in capital

233,667

 

233,331

 

184,523

Retained earnings

75,891

 

65,757

 

39,150

Accumulated other comprehensive income

5,487

 

6,231

 

(1,015)

TOTAL SHAREHOLDERS’ EQUITY

331,699

 

321,973

 

234,672

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

3,057,066

 

$

3,026,535

 

$

2,185,793

 

This information is preliminary and based on company data available at the time of presentation.

 
 
 
 
 

RELIANT BANCORP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollar amounts in thousands, except per share amounts)

 

 

Three Months Ended

 

March 31,

2021

 

December 31,

2020

 

March 31,

2020

INTEREST INCOME

 

 

 

 

 

Interest and fees on loans

$

30,989

 

 

$

32,272

 

 

$

20,645

 

Interest and fees on loans held for sale

1,331

 

 

1,038

 

 

560

 

Interest on investment securities, taxable

610

 

 

539

 

 

451

 

Interest on investment securities, nontaxable

1,225

 

 

1,194

 

 

1,371

 

Federal funds sold and other

227

 

 

239

 

 

279

 

TOTAL INTEREST INCOME

34,382

 

 

35,282

 

 

23,306

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

 

 

 

 

 

Demand

272

 

 

225

 

 

100

 

Savings and money market deposit accounts

839

 

 

1,041

 

 

1,030

 

Time

2,288

 

 

2,303

 

 

3,707

 

Federal Home Loan Bank advances and other borrowings

4

 

 

290

 

 

361

 

Subordinated debentures

953

 

 

987

 

 

993

 

TOTAL INTEREST EXPENSE

4,356

 

 

4,846

 

 

6,191

 

NET INTEREST INCOME

30,026

 

 

30,436

 

 

17,115

 

PROVISION FOR LOAN LOSSES

 

 

950

 

 

2,900

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

30,026

 

 

29,486

 

 

14,215

 

NONINTEREST INCOME

 

 

 

 

 

Service charges on deposit accounts

1,561

 

 

1,575

 

 

1,208

 

Gains on mortgage loans sold, net

4,928

 

 

4,634

 

 

1,573

 

Gain (loss) on securities transactions, net

129

 

 

(597

)

 

 

Other noninterest income

719

 

 

2,241

 

 

501

 

TOTAL NONINTEREST INCOME

7,337

 

 

7,853

 

 

3,282

 

NONINTEREST EXPENSE

 

 

 

 

 

Salaries and employee benefits

13,352

 

 

12,447

 

 

9,237

 

Occupancy

2,008

 

 

2,190

 

 

1,486

 

Data processing and software

2,229

 

 

2,509

 

 

1,819

 

Professional fees

1,243

 

 

743

 

 

478

 

Regulatory fees

361

 

 

441

 

 

454

 

Merger expenses

 

 

 

 

4,186

 

Other operating expense

2,471

 

 

2,681

 

 

1,938

 

TOTAL NONINTEREST EXPENSE

21,664

 

 

21,011

 

 

19,598

 

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

15,699

 

 

16,328

 

 

(2,101

)

INCOME TAX EXPENSE (BENEFIT)

2,980

 

 

3,411

 

 

(910

)

CONSOLIDATED NET INCOME (LOSS)

12,719

 

 

12,917

 

 

(1,191

)

NONCONTROLLING INTEREST IN NET (INCOME) LOSS OF SUBSIDIARY

(570

)

 

(691

)

 

976

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

12,149

 

 

$

12,226

 

 

$

(215

)

Basic net income (loss) attributable to common shareholders, per share

$

0.73

 

 

$

0.74

 

 

$

(0.02

)

Diluted net income (loss) attributable to common shareholders, per share

$

0.73

 

 

$

0.73

 

 

$

(0.02

)

 

This information is preliminary and based on company data available at the time of presentation.

 
 
 
 
 

RELIANT BANCORP, INC.
SEGMENT FINANCIAL INFORMATION - UNAUDITED
(Dollar Amounts in Thousands)

 

Core Bank (1)

 

 

 

 

 

 

Three Months Ended

 

March 31,

2021

 

December 31,

2020

 

March 31,

2020

Net interest income

$

29,133

 

 

$

29,695

 

 

$

16,782

 

Provision for loan losses

 

 

950

 

 

2,900

 

Noninterest income

2,409

 

 

3,218

 

 

1,709

 

Noninterest expense (excluding merger expense)

16,460

 

 

16,378

 

 

12,461

 

Merger expense

 

 

 

 

4,186

 

Income (loss) before provision for income taxes

15,082

 

 

15,585

 

 

(1,056

)

Income tax expense (benefit)

2,933

 

 

3,359

 

 

(841

)

Net income (loss) attributable to common shareholders

$

12,149

 

 

$

12,226

 

 

$

(215

)

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage Company (Reliant Mortgage Ventures, LLC)

 

 

 

 

 

 

Three Months Ended

 

March 31,

2021

 

December 31,

2020

 

March 31,

2020

Net interest income

$

893

 

 

$

741

 

 

$

333

 

Provision for loan losses

 

 

 

 

 

Noninterest income

4,928

 

 

4,635

 

 

1,573

 

Noninterest expense

5,204

 

 

4,633

 

 

2,951

 

Income (loss) before provision for income taxes

617

 

 

743

 

 

(1,045

)

Income tax expense (benefit)

47

 

 

52

 

 

(69

)

Net income (loss)

570

 

 

691

 

 

(976

)

Noncontrolling interest in net (income) loss of subsidiary

(570

)

 

(691

)

 

976

 

Net income (loss) attributable to common shareholders

$

 

 

$

 

 

$

 

(1)

 

Core Bank includes all entities included in the Consolidated Financial Statements other than Reliant Mortgage Ventures, LLC

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

 

This information is preliminary and based on company data available at the time of presentation.

 
 
 
 
 

RELIANT BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED

 

(Dollar amounts in thousands, except per share amounts)

Three months ended,

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

Per Common Share

 

 

 

 

 

Basic income (loss)

$

0.73

 

 

$

0.74

 

 

$

(0.02

)

Diluted income (loss)

$

0.73

 

 

$

0.73

 

 

$

(0.02

)

Adjusted diluted income (loss)(1)

$

0.73

 

 

$

0.73

 

 

$

0.25

 

Book value

$

19.92

 

 

$

19.33

 

 

$

19.53

 

Tangible book value(1)

$

16.00

 

 

$

15.39

 

 

$

14.44

 

Shares Outstanding

 

 

 

 

 

Basic weighted average common shares

16,615,169

 

 

16,599,819

 

 

11,892,723

 

Diluted weighted average common shares

16,740,303

 

 

16,684,425

 

 

11,892,723

 

Common shares outstanding at period end

16,654,415

 

 

16,654,409

 

 

12,014,495

 

Selected Balance Sheet Data

 

 

 

 

 

Loans, net of unearned income

$

2,277,714

 

 

$

2,300,783

 

 

$

1,619,445

 

Total assets

3,057,066

 

 

3,026,535

 

 

2,185,793

 

Customer deposits

2,350,168

 

 

2,265,742

 

 

1,377,407

 

Wholesale and institutional deposits

262,742

 

 

313,493

 

 

345,450

 

Total deposits

2,612,910

 

 

2,579,235

 

 

1,722,857

 

Total liabilities

2,725,367

 

 

2,704,562

 

 

1,951,121

 

Total shareholders' equity

331,699

 

 

321,973

 

 

234,672

 

Selected Balance Sheet Data - Quarterly Averages

 

 

 

 

 

Loans held for investment

$

2,280,379

 

 

$

2,339,996

 

 

$

1,613,030

 

Total assets

3,013,114

 

 

3,030,587

 

 

2,181,809

 

Interest-bearing liabilities

2,079,238

 

 

2,125,260

 

 

1,597,762

 

Total liabilities

2,686,085

 

 

2,716,308

 

 

1,939,910

 

Total shareholders' equity

327,029

 

 

314,279

 

 

241,899

 

Selected Performance Ratios

 

 

 

 

 

Return on average assets (2)

1.64

%

 

1.60

%

 

(0.04

)%

Return on shareholders' equity (2)

15.07

%

 

15.48

%

 

(0.36

)%

Return on average tangible common equity(1) (2)

18.84

%

 

19.38

%

 

(0.49

)%

Average shareholders' equity to average assets

10.85

%

 

10.37

%

 

11.09

%

Net interest margin (tax-equivalent basis) (2)

4.51

%

 

4.48

%

 

3.60

%

Efficiency Ratio (tax-equivalent basis)

56.4

%

 

53.2

%

 

92.9

%

Bank Segment efficiency ratio (1)

50.8

%

 

47.2

%

 

65.0

%

Loans held for investment to deposits ratio

87.20

%

 

89.20

%

 

94.00

%

Interest Rates and Yields (2)

 

 

 

 

 

Yield on interest-earning assets

5.14

%

 

5.16

%

 

4.85

%

Yield on loans held for investment

5.63

%

 

5.63

%

 

5.23

%

Cost of interest-bearing liabilities

0.85

%

 

0.91

%

 

1.56

%

Cost of total deposits

0.51

%

 

0.51

%

 

1.11

%

Preliminary Consolidated Capital Ratios (3)

 

 

 

 

 

Tier 1 leverage

9.33

%

 

8.91

%

 

8.91

%

Common equity tier 1

10.41

%

 

10.22

%

 

9.54

%

Tier 1 risk-based capital

10.88

%

 

10.70

%

 

10.19

%

Total risk-based capital

14.09

%

 

13.96

%

 

14.30

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Asset Quality Measures

 

 

 

 

 

Allowance for loan losses to total loans

0.91

%

 

0.90

%

 

0.93

%

Allowance for loan losses and purchase loan discounts to total loans

1.56

%

 

1.62

%

 

1.23

%

Net (recoveries) charge offs

$

(149

)

 

$

148

 

 

$

357

 

Net (recoveries) charge offs to average loans (2)

(0.03

)%

 

0.03

%

 

0.09

%

Total nonperforming loans held for investment (HFI)

$

6,110

 

 

$

5,987

 

 

$

4,043

 

Total nonperforming assets (4)

$

9,661

 

 

$

9,287

 

 

$

4,043

 

Nonperforming loans HFI to total loans HFI

0.27

%

 

0.26

%

 

0.25

%

Nonperforming assets to total assets

0.32

%

 

0.31

%

 

0.18

%

Nonperforming assets to total loans HFI and NPAs

0.42

%

 

0.40

%

 

0.25

%

(1)

 

Certain measures are considered non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures.”

(2)

 

Data has been annualized.

(3)

 

Current quarter capital ratios are estimated.

(4)

Nonperforming assets consist of nonperforming loans held for investment, nonperforming loans held for sale, repossessed assets, and other real estate.

 

This information is preliminary and based on company data available at the time of presentation.

 
 
 
 
 

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

 

The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:

 

Three Months Ended

March 31, 2021

 

Three Months Ended

December 31, 2020

 

Three Months Ended

March 31, 2020

 

Average

Balances (1)

Rates /

Yields (%)

Interest

Income /

Expense

 

Average

Balances (1)

Rates /

Yields (%)

Interest

Income /

Expense

 

Average

Balances (1)

Rates /

Yields (%)

Interest

Income /

Expense

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

Loans (2) (3)

$

2,280,379

5.15

 

$

28,288

 

$

2,339,996

5.21

 

$

29,765

 

$

1,613,030

5.01

 

$

19,755

Loan fees

0.48

 

2,701

 

0.43

 

2,507

 

0.22

 

890

Loans with fees

2,280,379

5.63

 

30,989

 

2,339,996

5.63

 

32,272

 

1,613,030

5.23

 

20,645

Mortgage loans held for sale

169,747

3.18

 

1,331

 

128,903

3.20

 

1,038

 

47,685

4.72

 

560

Deposits with banks

61,939

0.34

 

52

 

59,120

0.36

 

53

 

43,583

1.14

 

124

Investment securities - taxable

65,499

3.78

 

610

 

76,703

2.80

 

539

 

74,688

2.43

 

451

Investment securities - tax-exempt (4)

198,034

3.24

 

1,225

 

188,756

3.25

 

1,194

 

197,241

3.56

 

1,371

Restricted equity securities and other

17,321

4.10

 

175

 

19,470

3.80

 

186

 

16,323

3.82

 

155

Total earning assets

2,792,919

5.14

 

34,382

 

2,812,948

5.16

 

35,282

 

1,992,550

4.85

 

23,306

Nonearning assets

220,195

 

 

 

217,639

 

 

 

189,259

 

 

Total assets

$

3,013,114

 

 

 

$

3,030,587

 

 

 

$

2,181,809

 

 

Interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

$

377,714

0.29

 

$

272

 

$

296,228

0.30

 

$

225

 

$

186,236

0.22

 

$

100

Savings and money market

901,444

0.38

 

839

 

848,044

0.49

 

1,041

 

459,756

0.90

 

1,030

Time deposits - retail

494,508

1.15

 

1,404

 

620,688

0.87

 

1,359

 

541,973

1.85

 

2,496

Time deposits - wholesale

227,513

1.58

 

884

 

264,497

1.42

 

944

 

229,870

2.12

 

1,211

Total interest-bearing deposits

2,001,179

0.69

 

3,399

 

2,029,457

0.70

 

3,569

 

1,417,835

1.37

 

4,837

Federal Home Loan Bank advances and other borrowings

7,467

0.22

 

4

 

25,384

4.54

 

290

 

109,320

1.33

 

361

Subordinated Debt

70,592

5.48

 

953

 

70,419

5.58

 

987

 

70,607

5.66

 

993

Total borrowed funds

78,059

4.97

 

957

 

95,803

5.30

 

1,277

 

179,927

3.03

 

1,354

Total interest-bearing liabilities

2,079,238

0.85

 

4,356

 

2,125,260

0.91

 

4,846

 

1,597,762

1.56

 

6,191

Net interest spread (5)

 

4.29

 

30,026

 

 

4.25

 

30,436

 

 

3.29

 

17,115

Noninterest bearing deposits

565,770

(0.18

)

 

 

546,682

(0.19

)

 

 

312,073

(0.26

)

 

Other noninterest bearing liabilities

41,077

 

 

 

44,366

 

 

 

30,075

 

 

Shareholders' equity

327,029

 

 

 

314,279

 

 

 

241,899

 

 

Total liabilities and shareholders' equity

$

3,013,114

 

 

 

$

3,030,587

 

 

 

$

2,181,809

 

 

Cost of funds

 

0.67

 

 

 

 

0.72

 

 

 

 

1.30

 

 

Net interest margin (6)

 

4.51

 

 

 

 

4.48

 

 

 

 

3.60

 

 

(1)

 

Calculated using daily averages.

(2)

 

Average loan balances include nonaccrual loans.

(3)

 

Yields on loans reflects tax-exempt interest and state tax credits received on low or zero percent interest loans made to construct low income housing of $661, $863, and $322, for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

(4)

Yields on tax-exempt securities are shown on a tax-equivalent basis.

(5)

Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities.

(6)

Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period.

 

This information is preliminary and based on company data available at the time of presentation.

 
 
 
 
 

RELIANT BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES-UNAUDITED
(Dollar Amounts in Thousands, Except Per Share Amounts)

 

 

Three Months Ended

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

Adjusted net interest margin (1):

 

 

 

 

 

Net interest income

$

30,026

 

 

$

30,436

 

 

$

17,115

 

Add: tax equivalent interest income

1,019

 

 

1,212

 

 

699

 

Less: purchase accounting adjustments

(1,844

)

 

(2,771

)

 

(672

)

Adjusted net interest income

29,201

 

 

28,877

 

 

17,142

 

Average Earning Assets

$

2,792,919

 

 

$

2,812,948

 

 

$

1,992,550

 

Net interest margin-tax equivalent

4.51

%

 

4.48

%

 

3.60

%

Adjusted net interest margin

4.24

%

 

4.09

%

 

3.46

%

 

 

 

 

 

 

Adjusted net income:

 

 

 

 

 

Net income (loss) attributable to common shareholders

$

12,149

 

 

$

12,226

 

 

$

(215

)

Add: merger related expenses

 

 

 

 

4,186

 

Less: income tax impact of merger related expenses

 

 

 

 

(1,032

)

Adjusted net income

$

12,149

 

 

$

12,226

 

 

$

2,939

 

 

 

 

 

 

 

Adjusted diluted earnings per share:

 

 

 

 

 

Adjusted net income

$

12,149

 

 

$

12,226

 

 

$

2,939

 

Weighted average shares - diluted

16,740,303

 

 

16,684,425

 

 

11,892,723

 

Diluted earnings (loss) per share

$

0.73

 

 

$

0.73

 

 

$

(0.02

)

Adjusted diluted earnings per share

$

0.73

 

 

$

0.73

 

 

$

0.25

 

 

 

 

 

 

 

Adjusted annualized return on average assets:

 

 

 

 

 

Adjusted net income

$

12,149

 

 

$

12,226

 

 

$

2,939

 

Average assets

3,013,114

 

 

3,030,587

 

 

2,181,809

 

Annualized return on average assets

1.64

%

 

1.60

%

 

(0.04

)%

Adjusted annualized return on average assets

1.64

%

 

1.60

%

 

0.54

%

 

 

 

 

 

 

Adjusted annualized return on average equity:

 

 

 

 

 

Adjusted net income

$

12,149

 

 

$

12,226

 

 

$

2,939

 

Average total shareholders' equity

327,029

 

 

314,279

 

 

241,899

 

Annualized return on average equity

15.07

%

 

15.48

%

 

(0.36

)%

Adjusted annualized return on average equity

15.07

%

 

15.48

%

 

4.89

%

 

 

 

 

 

 

Adjusted annualized return on average tangible common equity:

 

 

 

 

 

Average total shareholders' equity

$

327,029

 

 

$

314,279

 

 

$

241,899

 

Less: average intangible assets

(65,531

)

 

(63,259

)

 

(65,329

)

Average tangible common equity

$

261,498

 

 

$

251,020

 

 

$

176,570

 

Adjusted net income

12,149

 

 

12,226

 

 

2,939

 

Annualized return on average tangible common equity

18.84

%

 

19.38

%

 

(0.49

)%

Adjusted annualized return on average tangible common equity

18.84

%

 

19.38

%

 

6.69

%

 

 

 

 

 

 

Adjusted pre-tax pre-provision income:

 

 

 

 

 

Income (loss) before provision for income taxes

$

15,699

 

 

$

16,328

 

 

$

(2,101

)

Add: merger related expenses

 

 

 

 

4,186

 

Add: provision for loan losses

 

 

950

 

 

2,900

 

Adjusted pre-tax pre-provision income

$

15,699

 

 

$

17,278

 

 

$

4,985

 

 

 

 

 

 

 

Tangible common equity to tangible assets:

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

Total shareholders' equity

$

331,699

 

 

$

321,973

 

 

$

234,672

 

Less: intangible assets

(65,287

)

 

(65,743

)

 

(61,209

)

Tangible common equity

$

266,412

 

 

$

256,230

 

 

$

173,463

 

Tangible assets:

 

 

 

 

 

Total assets

$

3,057,066

 

 

$

3,026,535

 

 

$

2,185,793

 

Less: intangible assets

(65,287

)

 

(65,743

)

 

(61,209

)

Tangible assets

$

2,991,779

 

 

$

2,960,792

 

 

$

2,124,584

 

Total shareholders' equity to total assets

10.85

%

 

10.64

%

 

10.74

%

Tangible common equity to tangible assets

8.90

%

 

8.65

%

 

8.16

%

 

 

 

 

 

 

Tangible book value per share:

 

 

 

 

 

Tangible common equity

$

266,412

 

 

$

256,230

 

 

$

173,463

 

Total shares of common stock outstanding

16,654,415

 

 

16,654,409

 

 

12,014,495

 

Book value per common share

$

19.92

 

 

$

19.33

 

 

$

19.53

 

Tangible book value per share

$

16.00

 

 

$

15.39

 

 

$

14.44

 

 

 

 

 

 

 

Allowance for loan losses plus unaccreted loan purchase discounts:

 

 

 

 

 

Allowance for loan losses

$

20,785

 

 

$

20,636

 

 

$

15,121

 

Unaccreted loan purchase discounts

14,833

 

 

16,634

 

 

4,771

 

Allowance for loan losses plus unaccreted loan purchase discounts:

$

35,618

 

 

$

37,270

 

 

$

19,892

 

Total loans

2,277,714

 

 

2,300,783

 

 

1,619,445

 

Allowance for loan losses plus unaccreted purchased loan discounts to total loans

1.56

%

 

1.62

%

 

1.23

%

Allowance for loan losses to total loans

0.91

%

 

0.90

%

 

0.93

%

 

 

 

 

 

 

Bank segment adjusted net income:

 

 

 

 

 

Bank segment net income (loss)

$

12,149

 

 

$

12,226

 

 

$

(215

)

Add: merger related expenses

 

 

 

 

4,186

 

Less: income tax impact of merger related expenses

 

 

 

 

(1,032

)

Bank segment adjusted net income

$

12,149

 

 

$

12,226

 

 

$

2,939

 

 

 

 

 

 

 

Bank segment adjusted noninterest expense:

 

 

 

 

 

Bank segment noninterest expense

$

16,460

 

 

$

16,378

 

 

$

16,647

 

Add: merger related expenses

 

 

 

 

(4,186

)

Bank segment adjusted noninterest expense

$

16,460

 

 

$

16,378

 

 

$

12,461

 

 

 

 

 

 

 

Bank segment adjusted efficiency ratio:

 

 

 

 

 

Bank segment adjusted total revenues:

 

 

 

 

 

Bank segment net interest income

$

29,133

 

 

$

29,695

 

 

$

16,782

 

Add: Tax equivalent interest income

1,019

 

 

1,212

 

 

699

 

Add: Bank segment noninterest income

2,409

 

 

3,218

 

 

1,709

 

Add: (Gain) loss on sale of securities, OREO, premises and equipment

(146

)

 

565

 

 

(23

)

Bank segment adjusted total revenues

$

32,415

 

 

$

34,690

 

 

$

19,167

 

Bank segment efficiency ratio

52.2

%

 

49.8

%

 

90.0

%

Bank segment adjusted efficiency ratio

50.8

%

 

47.2

%

 

65.0

%

(1)

 

Prior calculation of this measure removed tax credits related to certain tax-preference-qualified loans and tax-exempt securities. The Company views these credits as normal course of business and as such removal is unnecessary.

 

This information is preliminary and based on company data available at the time of presentation.

 
 

 

DeVan Ard, Jr.
Chairman and CEO
Reliant Bancorp, Inc.
615.221.2087

Source: Reliant Bancorp, Inc.



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