cbtx_Current_Folio_8K_ER

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8‑K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): January 31, 2017

 

 

CBTX, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Texas

001-38280

20‑8339782

 

 

 

(State or other jurisdiction of

(Commission File Number)

(I.R.S. Employer

 

 

 

incorporation or organization)

 

Identification No.)

 

9 Greenway Plaza, Suite 110

Houston, Texas 77046

(Address of principal executive offices)

 

(713) 210‑7600

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§230.12b-2 of this chapter).

Emerging growth company 

 

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

29273206.2 


 

Item 2.02    Results of Operations and Financial Condition.

On January 31, 2017, CBTX, Inc. issued a press release announcing its financial results for the quarter ended December 31, 2017.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Form 8-K and Exhibit 99.1 to such report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.  The following are furnished as exhibits to this Current Report on Form 8-K:

 

 

Exhibit Number

Description of Exhibit

99.1

Press Release of CBTX, Inc. dated January 31, 2017.

 

 


 

SIGNATURES

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

 

 

 

 

 

CBTX, Inc.

 

 

(Registrant)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date: January 31, 2017

 

/s/ Robert T. Pigott, Jr.

 

 

Robert T. Pigott, Jr.

 

 

Chief Financial Officer

 

 

 

 

 


cbtx_Ex99_1

 

 

Picture 1 

Exhibit 99.1

 

 

CBTX, Inc. Reports Fourth Quarter Financial Results

 

Houston, Texas, January 31, 2018-- CBTX, Inc. (the “Company”) (NASDAQ:CBTX), the bank holding company for CommunityBank of Texas N.A., today announced net income of $2.0 million, or $0.08 per diluted share, for the quarter ended December 31, 2017, compared to $7.6 million, or $0.34 per diluted share, for the quarter ended December  31, 2016 and $10.0 million, or $0.45 per diluted share, for the quarter ended September 30, 2017. 

 

The Company reported net income for the year ended December 31, 2017 of  $27.6 million, or $1.22 per diluted share, compared to $27.2 million, or $1.22 per diluted share, for the year ended December 31, 2016.

 

Highlights

 

·

Net income for the fourth quarter of 2017 included a charge of $3.9 million related to the Tax Cuts and Jobs Act (the "Tax Act") and change of control expenses of $2.5 million  ($1.6 million after tax), triggered by our initial public offering.

 

·

Loan growth, excluding loans held for sale, was 20.2% for the quarter (annualized) and 7.3% for the year.

 

·

The Company completed its previously announced initial public offering of 2,760,000 shares of its common stock to the public at $26.00 per share for gross proceeds of approximately $71.8 million. Our common stock began trading on the NASDAQ Global Market on November 8, under the ticker symbol "CBTX."

 

CBTX, Inc. Chairman and Chief Executive Officer Robert R. Franklin Jr. commented,  “2017 was an outstanding year for our Company. We reported total assets of $3.1 billion, total loans of $2.3 billion, total deposits of $2.6 billion and net income of $27.6 million, each of which are all-time highs for our Company.” 

 

Operating Results:

Net Interest Income

Net interest income was $28.2 million for the fourth quarter of 2017, compared to $25.8 million for the fourth quarter of 2016 and $27.3 million for the third quarter of 2017. The increase in net interest income in the fourth quarter of 2017 from the fourth quarter of 2016, was due to increased average loans and securities and increased average yields on federal funds sold and other interest-earning assets. The increase in net interest income in the fourth quarter of 2017 from the third quarter of 2017 was due to increased average loans and federal funds sold and other interest-earning assets and the impact of the November repayment of our note payable in the amount of $23.3 million. Net interest income was $107.8 million for the year ended December 31, 2017, compared to $101.5 million for year ended December 31, 2016. The increase in net interest income in 2017, as compared to 2016 was due to increased average loans and securities and increased average yields on federal funds sold and other interest-earning assets.

 

The average balance of total interest-earning assets was $2.8 billion for the quarter ended December  31, 2017, an increase of $99.1 million, compared to the average balance for the quarter ended December  31, 2016 and $94.3 million, compared to the average balance for the quarter ended September 30, 2017. The increase in the average interest-earnings assets for the quarter ended December 31, 2017, compared to the quarter ended September 30, 2017 is primarily due to increases in average loans and federal funds sold. The increase in the average interest-earnings assets for the quarter ended December 31, 2017, compared to the quarter ended

 

1

 


 

December 31, 2016, is primarily due to increases in average loans and average securities. The average balance of interest-earning assets was $2.7 billion for the year ended December 31, 2017, an increase of $88.8 million, compared to the average for the year ended December 31, 2016. The increase in average interest-earning assets for the year ended December 31, 2017, compared to the year ended December 31, 2016 is primarily due to increases in average loans and average securities, partially offset by a decrease in average federal funds sold.    

 

The yield on interest-earning assets was 4.29% for the fourth quarter of 2017, compared to 4.11% for the fourth quarter of 2016 and 4.32% for the third quarter of 2017. The yield on interest-earning assets was 4.30% for the year ended December 31, 2017, compared to 4.19% for the year ended December 31, 2016. The increase from the prior year is primarily due to an increase in the yield on investments and federal funds sold.  

 

The cost of interest-bearing liabilities, including borrowings, was 0.56% for the fourth quarter of 2017, compared to 0.57% for the fourth quarter of 2016 and 0.60% for the third quarter of 2017. The cost of interest-bearing liabilities, including borrowings, was 0.58% for the year ended December 31, 2017 compared to 0.56% for the year ended December 31, 2016. 

 

The net interest margin was 3.98% for the fourth quarter of 2017 compared to 3.78% for the fourth quarter of 2016 and 3.98% for the third quarter of 2017. The net interest margin was 3.97% for the year ended December 31, 2017 compared to 3.87% for the year ended December 31, 2016. 

 

Provision (Recapture) for Loan Losses

 

Provision for loan loss was $1.1 million for the fourth quarter of 2017, compared to a provision for the fourth quarter of 2016 of $650,000 and a recapture of $1.7 million for the third quarter of 2017. The recapture in the third quarter of 2017 is primarily the result of pay-offs of certain classified and problem loans, which resulted in a decrease in their related allowance for loan losses. Provision for loan loss was a recapture of $338,000 for the year ended December 31, 2017, compared to a provision of $4.6 million for the year ended December 31, 2016. The recapture in the year ended December 31, 2017 was primarily the result of pay-offs of certain classified and problem loans, which resulted in a decrease in their related allowance for loan losses.

 

The allowance for loan losses was $24.8 million, or 1.07% of total loans, at December 31, 2017, compared to $25.0 million, or 1.16% of total loans, at December 31, 2016 and $23.8 million, or 1.08% of total loans, at September 30, 2017. The lower balance at September 30, 2017 is primarily the result of the recaptures mentioned above.

 

Noninterest Income

 

Noninterest income was $3.1 million for the fourth quarter of 2017, $4.4 million for the fourth quarter of 2016 and $4.1 million for the third quarter of 2017. These fluctuations are primarily due to net gains recorded on sales of assets recorded in the third quarter of 2017 and the fourth quarter of 2016 resulting from sales of branches in those periods. Noninterest income was $14.2 million for the year ended December 31, 2017 and $15.7 million for the year ended December 31, 2016, a decrease of $1.5 million, or 9.8%. This decrease primarily resulted from a decrease in deposit account service charges due to a reduction of non-sufficient and overdraft charges incurred by our deposit customers and a decrease in other income due to income from our SBIC investment in 2016.

 

Noninterest Expense

 

Noninterest expense increased $3.3 million during the fourth quarter of 2017, as compared to the fourth quarter of 2016 and increased $3.0 million, as compared to the third quarter of 2017. The increase in noninterest expense compared to the fourth quarter of 2016 and the third quarter of 2017 is due primarily to a $2.5 million charge for change of control payments to certain employees triggered by our initial public offering, which is reflected in salaries and employee benefits and increased professional and director fees. Noninterest expense increased $4.8 million during 2017, as compared to 2016 due to the change of control payments previously mentioned, increased professional and director fees and increased advertising due to our branding campaign in 2017, partially offset

 

2

 


 

by decreased occupancy costs due to sales of branches in 2016 and 2017.  

 

Income Taxes

 

Income tax expense was $6.3 million for the fourth quarter of 2017, $3.3 million for the fourth quarter of 2016 and $3.9 million for the third quarter of 2017. During the fourth quarter of 2017, we recorded a deferred tax asset impairment of $3.9 million related to the recent Tax Cuts and Jobs Act. Income tax expense was $16.5 million for the year ended December 31, 2017 and $12.0 million for the year ended December 31, 2016, an increase of $4.5 million, due to deferred tax asset impairment previously mentioned above and true-ups and return to provision adjustments booked in 2017.

 

As a result of the Tax Act passed in December 2017, the Company was required to recalculate its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates and lost deductions on these assets and liabilities. The effective tax rate for the fourth quarter of 2017 including the impact of the Tax Act was 76.3% and would have been approximately 29.7% without the impact of the Tax Act. The effective tax rate for 2017 including the impact of the Tax Act was 37.4% and would have been approximately 28.6% without the impact of the Tax Act. The effective tax rates were 30.5% for the fourth quarter of 2016, 28.1% for the third quarter of 2017 and 30.7% for 2016. 

 

Balance Sheet Highlights:

 

Loans

 

Loans were $2.3 billion at December 31, 2017, $2.1 billion at December 31, 2016 and $2.2 billion at September 30, 2017.  The increases from the prior year and linked quarter are primarily due to organic growth. 

 

Asset Quality 

 

Nonperforming assets were $8.4 million, or 0.27% of total assets, at December  31, 2017, $8.1 million, or 0.27% of total assets, at December  31, 2016 and $9.7 million, or 0.33% of total assets at September 30, 2017.

 

Nonperforming loans were $7.6 million, or 0.33% of total loans, at December 31, 2017, $6.2 million, or 0.29% of total loans, at December 31, 2016 and $8.6 million, or 0.39% of total loans, at September 30, 2017. 

 

Annualized net charge-offs (recoveries) to average loans were 0.00% for the fourth quarter of 2017 and 0.50% for the fourth quarter of 2016 and (0.04)% for the third quarter of 2017. The recoveries in the third quarter of 2017 are primarily the result of payoffs of certain classified and problem loans.

 

Deposits and Borrowings

 

Total deposits were $2.6 billion at December  31, 2017, compared to $2.5 billion at December 31, 2016 and $2.6 billion at September 30, 2017. The increase from the prior year is primarily due to organic growth.

 

Total borrowings (excluding junior subordinated debentures) were $1.5 million at December  31, 2017, $30.0 million at December  31, 2016 and $26.6 million at September 30, 2017. The decrease in borrowings at December 31, 2017 is due to scheduled payments and our fourth quarter repayment in full of the outstanding balance of our note payable.

 

On December 13, 2017, we entered into a loan agreement providing for a $30 million revolving line of credit and from that date through December 31, 2017, we made no borrowings under that agreement.

 

Capital

 

At December  31, 2017, we were well capitalized under regulatory guidelines. At December  31, 2017, our ratio of total shareholders’ equity to total assets was 14.48% and our tangible equity to total tangible assets was 11.98%.

 

3

 


 

At December 31, 2016, our ratio of total shareholders’ equity to total assets was 12.12% and our tangible equity to total tangible assets was 9.39%. Tangible equity to total tangible assets is a non‑GAAP financial measure. See the table captioned “Non‑GAAP to GAAP Reconciliation.”

 

In November 2017, we completed our initial public offering of our common stock issuing 2,760,000 common shares at $26.00 per share and net proceeds of $64.5 million, which is the primary cause of the increase in these ratios.

 

About CBTX, Inc.

 

CBTX, Inc. is the bank holding company for CommunityBank of Texas, N.A., a $3.1 billion asset bank, offering commercial banking solutions to local small and mid-sized businesses and professionals in Houston, Beaumont and surrounding communities in southeast Texas.  Visit www.communitybankoftx.com for more information.

 

Forward-Looking Statements

 

This release may contain certain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about the Company and its subsidiary. Forward-looking statements include information regarding the Company’s future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to whether the Company can: prudently manage and execute its growth strategy; manage risks associated with its acquisition and de novo branching strategy; maintain its asset quality; address the volatility and direction of market interest rates; continue to have access to debt and equity capital markets; and achieve its performance goals. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Final Prospectus filed pursuant to Rule 424(b)(4) and other reports and statements that the Company has filed with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what its anticipates. Accordingly, you should not place undue reliance on any such forward looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Copies of the SEC filings for the Company are available for download free of charge from www.communitybanktx.com under the Investor Relations tab.

 

 

 

4

 


 

CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data (at period end):

    

12/31/2017

    

9/30/2017

 

6/30/2017

 

3/31/2017

 

12/31/2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, excluding loans held for sale

 

$

2,311,544

 

$

2,199,478

 

$

2,192,443

 

$

2,217,656

 

$

2,154,885

Allowance for loan losses

 

 

(24,778)

 

 

(23,757)

 

 

(25,187)

 

 

(25,881)

 

 

(25,006)

Loans, net

 

 

2,286,766

 

 

2,175,721

 

 

2,167,256

 

 

2,191,775

 

 

2,129,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

 

326,199

 

 

348,578

 

 

307,173

 

 

272,355

 

 

382,103

Securities

 

 

223,208

 

 

217,660

 

 

220,330

 

 

219,978

 

 

205,978

Premises and equipment, net

 

 

53,607

 

 

54,129

 

 

56,609

 

 

55,986

 

 

57,514

Goodwill

 

 

80,950

 

 

80,950

 

 

80,950

 

 

80,950

 

 

80,950

Other intangible assets, net

 

 

6,770

 

 

7,031

 

 

7,298

 

 

7,513

 

 

7,791

Repossessed real estate and other assets

 

 

705

 

 

1,136

 

 

1,435

 

 

1,179

 

 

1,861

Loans held for sale

 

 

1,460

 

 

466

 

 

559

 

 

675

 

 

613

Other assets

 

 

101,418

 

 

104,167

 

 

99,267

 

 

84,137

 

 

84,833

Total Assets

 

$

3,081,083

 

$

2,989,838

 

$

2,940,877

 

$

2,914,548

 

$

2,951,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,109,789

 

$

1,051,755

 

$

1,030,865

 

$

993,839

 

$

1,025,425

Interest-bearing deposits

 

 

1,493,183

 

 

1,502,872

 

 

1,485,919

 

 

1,504,606

 

 

1,515,335

Total deposits

 

 

2,602,972

 

 

2,554,627

 

 

2,516,784

 

 

2,498,445

 

 

2,540,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note payable

 

 

 -

 

 

24,357

 

 

25,464

 

 

26,571

 

 

27,679

Repurchase agreements

 

 

1,525

 

 

2,239

 

 

2,179

 

 

2,464

 

 

2,343

Junior subordinated debt

 

 

6,726

 

 

6,726

 

 

6,726

 

 

6,726

 

 

6,726

Other liabilities

 

 

23,646

 

 

20,768

 

 

17,760

 

 

16,699

 

 

16,377

Total Liabilities

 

 

2,634,869

 

 

2,608,717

 

 

2,568,913

 

 

2,550,905

 

 

2,593,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

446,214

 

 

381,121

 

 

371,964

 

 

363,643

 

 

357,637

Total Liabilities and Shareholders' Equity

 

$

3,081,083

 

$

2,989,838

 

$

2,940,877

 

$

2,914,548

 

$

2,951,522

 

5

 


 

CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Income (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Years Ended

 

    

12/31/2017

    

9/30/2017

    

6/30/2017

    

3/31/2017

    

12/31/2016

    

12/31/2017

    

12/31/2016

Interest Income

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Interest and fees on loans

 

$

27,726

 

$

27,129

 

$

26,560

 

$

25,953

 

$

26,298

 

$

107,368

 

$

103,723

Securities

 

 

1,357

 

 

1,334

 

 

1,353

 

 

1,303

 

 

1,055

 

 

5,347

 

 

3,801

Federal Funds and interest-bearing deposits

 

 

1,283

 

 

1,106

 

 

813

 

 

742

 

 

658

 

 

3,944

 

 

2,427

Total Interest Income

 

 

30,366

 

 

29,569

 

 

28,726

 

 

27,998

 

 

28,011

 

 

116,659

 

 

109,951

Interest Expense

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Deposits

 

 

1,993

 

 

1,964

 

 

1,857

 

 

1,838

 

 

1,914

 

 

7,652

 

 

7,073

Repurchase agreements

 

 

 —

 

 

 2

 

 

 1

 

 

 2

 

 

 2

 

 

 5

 

 

 5

Note payable

 

 

122

 

 

269

 

 

264

 

 

251

 

 

256

 

 

906

 

 

1,061

Junior subordinated debt

 

 

86

 

 

83

 

 

79

 

 

74

 

 

72

 

 

322

 

 

266

Total Interest Expense

 

 

2,201

 

 

2,318

 

 

2,201

 

 

2,165

 

 

2,244

 

 

8,885

 

 

8,405

Net Interest Income

 

 

28,165

 

 

27,251

 

 

26,525

 

 

25,833

 

 

25,767

 

 

107,774

 

 

101,546

Provision (Recapture) for Loan Losses

 

 

1,050

 

 

(1,654)

 

 

(694)

 

 

960

 

 

650

 

 

(338)

 

 

4,575

Net Interest Income After Provision (Recapture) for Loan Losses

 

 

27,115

 

 

28,905

 

 

27,219

 

 

24,873

 

 

25,117

 

 

108,112

 

 

96,971

Noninterest Income

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Deposit account service charges

 

 

1,388

 

 

1,395

 

 

1,517

 

 

1,500

 

 

1,591

 

 

5,800

 

 

6,538

Net gain on sale of assets

 

 

(7)

 

 

828

 

 

339

 

 

364

 

 

1,282

 

 

1,524

 

 

1,922

Card interchange fees

 

 

941

 

 

803

 

 

877

 

 

832

 

 

830

 

 

3,453

 

 

3,352

Earnings on bank-owned life insurance

 

 

460

 

 

459

 

 

335

 

 

326

 

 

340

 

 

1,580

 

 

1,356

Other

 

 

362

 

 

601

 

 

458

 

 

426

 

 

357

 

 

1,847

 

 

2,581

Total Noninterest Income

 

 

3,144

 

 

4,086

 

 

3,526

 

 

3,448

 

 

4,400

 

 

14,204

 

 

15,749

Noninterest Expense

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Salaries and employee benefits

 

 

14,021

 

 

11,829

 

 

11,299

 

 

11,424

 

 

11,181

 

 

48,573

 

 

44,239

Net occupancy expense

 

 

2,346

 

 

2,221

 

 

2,351

 

 

2,233

 

 

2,448

 

 

9,151

 

 

10,100

Regulatory fees

 

 

487

 

 

458

 

 

621

 

 

610

 

 

606

 

 

2,176

 

 

2,300

Data processing

 

 

674

 

 

662

 

 

651

 

 

642

 

 

623

 

 

2,629

 

 

2,484

Printing, stationery and office

 

 

415

 

 

348

 

 

370

 

 

347

 

 

444

 

 

1,480

 

 

1,537

Amortization of intangibles

 

 

263

 

 

267

 

 

271

 

 

278

 

 

283

 

 

1,079

 

 

1,167

Professional and director fees

 

 

1,168

 

 

606

 

 

706

 

 

625

 

 

680

 

 

3,105

 

 

2,481

Correspondent bank and customer related transaction expenses

 

 

67

 

 

67

 

 

78

 

 

74

 

 

77

 

 

286

 

 

320

Loan processing costs

 

 

141

 

 

115

 

 

133

 

 

72

 

 

191

 

 

461

 

 

509

Advertising, marketing and business development

 

 

508

 

 

266

 

 

508

 

 

179

 

 

219

 

 

1,461

 

 

789

Repossessed real estate and other asset expense

 

 

66

 

 

340

 

 

85

 

 

118

 

 

99

 

 

609

 

 

318

Security and protection expense

 

 

300

 

 

331

 

 

352

 

 

372

 

 

363

 

 

1,355

 

 

1,718

Telephone and communications

 

 

344

 

 

311

 

 

307

 

 

354

 

 

384

 

 

1,316

 

 

1,444

Other expenses

 

 

1,189

 

 

1,196

 

 

1,127

 

 

1,099

 

 

1,040

 

 

4,611

 

 

4,096

Total Noninterest Expense

 

 

21,989

 

 

19,017

 

 

18,859

 

 

18,427

 

 

18,638

 

 

78,292

 

 

73,502

Net Income Before Income Tax Expense

 

 

8,270

 

 

13,974

 

 

11,886

 

 

9,894

 

 

10,879

 

 

44,024

 

 

39,218

Income Tax Expense

 

 

6,313

 

 

3,927

 

 

3,181

 

 

3,032

 

 

3,322

 

 

16,453

 

 

12,010

Net Income

 

$

1,957

 

$

10,047

 

$

8,705

 

$

6,862

 

$

7,557

 

$

27,571

 

$

27,208

 

6

 


 

CBTX, INC. AND SUBSIDIARY

Financial Highlights (Unaudited)

(In thousands, except per share data and percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Years Ended

 

 

    

12/31/2017

    

9/30/2017

    

6/30/2017

    

3/31/2017

    

12/31/2016

    

12/31/2017

 

12/31/2016

 

Profitability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,957

 

$

10,047

 

$

8,705

 

$

6,862

 

$

7,557

 

$

27,571

 

$

27,208

 

Basic earnings per share

 

$

0.08

 

$

0.46

 

$

0.39

 

$

0.31

 

$

0.34

 

$

1.23

 

$

1.23

 

Diluted earnings per share

 

$

0.08

 

$

0.45

 

$

0.39

 

$

0.31

 

$

0.34

 

$

1.22

 

$

1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

 

0.25

%

 

1.34

%

 

1.20

%

 

0.95

%

 

1.02

%

 

0.93

%

 

0.95

%

Return on average shareholders' equity (1)

 

 

1.83

%

 

10.54

%

 

9.46

%

 

7.73

%

 

8.47

%

 

7.18

%

 

7.79

%

Net interest margin- tax equivalent (1)

 

 

4.06

%

 

4.07

%

 

4.08

%

 

4.02

%

 

3.87

%

 

4.06

%

 

3.96

%

Efficiency ratio (2)

 

 

70.23

%

 

60.69

%

 

62.76

%

 

62.93

%

 

61.78

%

 

64.19

%

 

62.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity and Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity to total assets

 

 

14.48

%

 

12.75

%

 

12.65

%

 

12.48

%

 

12.12

%

 

14.48

%

 

12.12

%

Tangible equity to tangible assets (3)

 

 

11.98

%

 

10.10

%

 

9.95

%

 

9.74

%

 

9.39

%

 

11.98

%

 

9.39

%

Common equity tier 1 capital ratio

 

 

14.19

%

 

12.23

%

 

12.00

%

 

11.32

%

 

11.52

%

 

14.19

%

 

11.52

%

Tier 1 leverage ratio

 

 

12.30

%

 

10.48

%

 

10.39

%

 

10.10

%

 

9.78

%

 

12.30

%

 

9.78

%

Tier 1 risk-based capital ratio

 

 

14.44

%

 

12.49

%

 

12.26

%

 

11.58

%

 

11.78

%

 

14.44

%

 

11.78

%

Total risk-based capital ratio

 

 

15.42

%

 

13.48

%

 

13.33

%

 

12.64

%

 

12.85

%

 

15.42

%

 

12.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding- Basic

 

 

23,629

 

 

22,063

 

 

22,062

 

 

22,062

 

 

21,993

 

 

22,457

 

 

22,049

 

Weighted average common shares outstanding- Diluted

 

 

23,742

 

 

22,138

 

 

22,148

 

 

22,162

 

 

22,067

 

 

22,573

 

 

22,235

 

Common shares outstanding at period end

 

 

24,833

 

 

22,063

 

 

22,063

 

 

22,062

 

 

22,062

 

 

24,833

 

 

22,062

 

Dividends per share

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.20

 

$

0.20

 

Book value per share

 

$

17.97

 

$

17.27

 

$

16.86

 

$

16.48

 

$

16.21

 

$

17.97

 

$

16.21

 

Tangible book value per share (3)

 

$

14.44

 

$

13.29

 

$

12.86

 

$

12.47

 

$

12.19

 

$

14.44

 

$

12.19

 

Employees - full-time equivalents

 

 

462

 

 

464

 

 

472

 

 

479

 

 

479

 

 

462

 

 

479

 

 


(1)Quarterly ratios are annualized.

(2)Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.

(3)Non‑GAAP financial measure. See the table captioned “Non‑GAAP to GAAP Reconciliation.”

 

7

 


 

CBTX, INC. AND SUBSIDIARY

Net Interest Margin (Unaudited)

(In thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

12/31/2017

 

9/30/2017

 

12/31/2016

 

 

    

 

 

    

Interest

 

 

    

 

 

    

Interest

 

 

    

 

 

    

Interest

    

 

 

 

 

Average

 

Earned/

 

Average

 

Average

 

Earned/

 

Average

 

Average

 

Earned/

 

Average

 

 

 

Outstanding

 

Interest

 

Yield/

 

Outstanding

 

Interest

 

Yield/

 

Outstanding

 

Interest

 

Yield/

 

 

 

Balance

 

Paid

 

Rate (1)

 

Balance

 

Paid

 

Rate (1)

 

Balance

 

Paid

 

Rate (1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earnings assets:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Total loans (2)

 

$

2,252,735

 

$

27,726

 

4.88

%  

$

2,191,016

 

$

27,129

 

4.91

%  

$

2,179,862

 

$

26,298

 

4.80

%

Securities (available for sale and held to maturity)

 

 

222,602

 

 

1,357

 

2.42

%  

 

223,132

 

 

1,334

 

2.37

%  

 

192,938

 

 

1,055

 

2.18

%

Federal funds sold and other interest-earning assets

 

 

317,484

 

 

1,093

 

1.37

%  

 

284,334

 

 

927

 

1.29

%  

 

320,955

 

 

485

 

0.60

%

Nonmarketable equity securities

 

 

14,698

 

 

190

 

5.13

%  

 

14,695

 

 

179

 

4.83

%  

 

14,683

 

 

173

 

4.66

%

Total interest-earning assets

 

 

2,807,519

 

$

30,366

 

4.29

%  

 

2,713,177

 

$

29,569

 

4.32

%  

 

2,708,438

 

$

28,011

 

4.11

%

Allowance for loan losses

 

 

(24,127)