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): April 26, 2018

 

 

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.

 


 

 

Item 2.02    Results of Operations and Financial Condition.

On April 26, 2018, CBTX, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2018.  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 April 26, 2018.

 

 

 


 

 

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: April 26, 2018

 

/s/ Robert T. Pigott, Jr.

 

 

Robert T. Pigott, Jr.

 

 

Chief Financial Officer

 

 

 

 

 

 


cbtx_Ex99_1

 

 

Picture 1 

Exhibit 99.1

 

 

CBTX, Inc. Reports First Quarter Financial Results

 

Houston, Texas, April 26, 2018-- CBTX, Inc. (the “Company”) (NASDAQ:CBTX), the bank holding company for CommunityBank of Texas N.A., today announced net income of $9.1  million, or $0.37 per diluted share, for the quarter ended March 31, 2018, compared to $6.9 million, or $0.31 per diluted share, for the quarter ended March  31, 2017 and $2.0 million, or $0.08 per diluted share, for the quarter ended December 31, 2017. 

 

Highlights

 

·

Loans increased $44.5 million during the first quarter of 2018, a 8% annualized growth rate for the quarter.

 

·

Net interest income increased $3.2 million or 12.4%, from the first of quarter 2017 to the first quarter of 2018, primarily due increased average loans and yields on loans. 

 

·

Income tax expense decreased $893,000 from the first quarter 2017 to the first quarter of 2018 and $4.2 million from the fourth quarter of 2017 to the first quarter of 2018 due to the reduction of the federal tax rate from 35% to 21% and a  fourth quarter 2017 charge of $3.9 million related to the Tax Cuts and Jobs Act (the "Tax Act").

 

 

Operating Results:

Net Interest Income

Net interest income was $29.0 million for the first quarter of 2018, compared to $25.8 million for the first quarter of 2017 and $28.2 million for the fourth quarter of 2017. The increase in net interest income in the first quarter of 2018 from the first quarter of 2017, was due to increased average loans and repayment of our note payable in the fourth quarter of 2017 and increased average yields on loans and federal funds sold. The increase in net interest income in the first quarter of 2018 from the fourth quarter of 2017 was due to increased average loans and average loan yields and the impact of the repayment of our note payable. 

 

The yield on interest-earning assets was 4.49% for the first quarter of 2018, compared to 4.26% for the first quarter of 2017 and 4.29% for the fourth quarter of 2017.

 

The cost of interest-bearing liabilities, including borrowings, was 0.55% for the first quarter of 2018, compared to 0.57% for the first quarter of 2017 and 0.56% for the fourth quarter of 2017.

 

The net interest margin was 4.19% for the first quarter of 2018 compared to 3.93% for the first quarter of 2017 and 3.98% for the fourth quarter of 2017.

 

Provision (Recapture) for Loan Losses

 

Provision for loan loss was $865,000 for the first quarter of 2018, compared to $960,000 for the first quarter of 2017 and $1.1 million for the fourth quarter of 2017.

 

The allowance for loan losses was $25.3 million, or 1.08% of total loans, at March 31, 2018, compared to $25.9 million, or 1.17% of total loans, at March 31, 2017 and $24.8 million, or 1.07% of total loans, at December 31, 2017.

 

 

1

 


 

Noninterest Income

 

Noninterest income was $3.4 million for the first quarter of 2018, $3.4 million for the first quarter of 2017 and $3.1 million for the fourth quarter of 2017. Although noninterest income was flat between the first quarter 2018 and the first quarter 2017, there was a decrease in gains on sales of assets and an increase in bank-owned life insurance income from the first quarter of 2017 to the first quarter of 2018. The increase in noninterest income from the fourth quarter of 2017 to the first quarter of 2018 was primarily due to higher gains on sales of loans in the first quarter of 2018. 

 

Noninterest Expense

 

Noninterest expense increased $1.9 million during the first quarter of 2018 as compared to the first quarter of 2017 and decreased $1.7 million as compared to the fourth quarter of 2017.

 

The decrease in noninterest expense during the first quarter of 2018 compared to the fourth 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 in the fourth quarter of 2017. Excluding the $2.5 million charge for change of control payments, noninterest expense for the first quarter of 2018 increased $795,000 primarily due to increased salaries and employee benefits due to increases in salaries and incentive compensation and health insurance premiums, partially offset by lower professional and director fees.

 

The increase in noninterest expense in the first quarter of 2018 compared to the first quarter of 2017 is primarily due to increased salaries and employee benefits due to increases in salaries and incentive compensation, health insurance premiums and stock compensation expense. 

 

Income Taxes

 

Income tax expense was $2.1 million for the  first quarter of 2018, $3.0 million for the first quarter of 2017 and $6.3 million for the fourth quarter of 2017. During the fourth quarter of 2017, the Company recorded a deferred tax asset impairment charge of $3.9 million related to the recent Tax Act.

 

The effective tax rates were 19.0% for the  first quarter of 2018,  30.7% for the first quarter of 2017 and 76.3% for the fourth quarter of 2017. The effective tax rate for the first quarter of 2018 reflects reduction of the federal tax rate from 35% to 21% in the recent Tax Act.

 

Balance Sheet Highlights:

 

Loans

 

Loans were $2.4 billion at March 31, 2018,  $2.2 billion at March 31, 2017 and $2.3 billion at December 31, 2017.  The increases from the prior year and linked quarter are primarily due to organic growth. 

 

Asset Quality 

 

Nonperforming assets remain low relative to total assets at  $6.1 million, or 0.20% of total assets, at March 31, 2018, $7.2 million, or 0.25% of total assets, at March 31, 2017 and $8.4 million, or 0.27% of total assets at December 31, 2017.

 

Nonperforming loans were $5.8 million, or 0.24% of total loans, at March 31, 2018, $6.1 million, or 0.27% of total loans, at March 31, 2017 and $7.6 million, or 0.33% of total loans, at December  31, 2017. 

 

Annualized net charge-offs (recoveries) to average loans were 0.05% for the first quarter of 2018, 0.02% for the first quarter of 2017 and 0.00% for the fourth quarter of 2017.  

 

 

2

 


 

Deposits and Borrowings

 

Total deposits were $2.6 billion at March  31, 2018, compared to $2.5 billion at March 31, 2017 and $2.6 billion at December  31, 2017.

 

Total borrowings (excluding junior subordinated debentures) were $861,000 at March  31, 2018,  $29.0 million at March 31, 2017 and $1.5 million at December  31, 2017. The decrease in borrowings 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 March 31, 2018, we made no borrowings under that agreement.

 

Capital

 

At March  31, 2018,  the Company remains well capitalized. Our ratio of total shareholders’ equity to total assets was 14.69% and our tangible equity to total tangible assets was 12.19% at March 31, 2018 and our ratio of total shareholders’ equity to total assets was 12.48% and our tangible equity to total tangible assets was 9.74% at March 31, 2017.  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 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (‘SEC”) 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.

 

3

 


 

CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data (at period end):

    

3/31/2018

    

12/31/2017

 

9/30/2017

 

6/30/2017

 

3/31/2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, excluding loans held for sale

 

$

2,356,053

 

$

2,311,544

 

$

2,199,478

 

$

2,192,443

 

$

2,217,656

Allowance for loan losses

 

 

(25,349)

 

 

(24,778)

 

 

(23,757)

 

 

(25,187)

 

 

(25,881)

Loans, net

 

 

2,330,704

 

 

2,286,766

 

 

2,175,721

 

 

2,167,256

 

 

2,191,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

 

279,915

 

 

326,199

 

 

348,578

 

 

307,173

 

 

272,355

Debt securities

 

 

221,183

 

 

223,208

 

 

217,660

 

 

220,330

 

 

219,978

Premises and equipment, net

 

 

53,135

 

 

53,607

 

 

54,129

 

 

56,609

 

 

55,986

Goodwill

 

 

80,950

 

 

80,950

 

 

80,950

 

 

80,950

 

 

80,950

Other intangible assets, net

 

 

6,521

 

 

6,770

 

 

7,031

 

 

7,298

 

 

7,513

Repossessed real estate and other assets

 

 

295

 

 

705

 

 

1,136

 

 

1,435

 

 

1,179

Loans held for sale

 

 

113

 

 

1,460

 

 

466

 

 

559

 

 

675

Other assets

 

 

101,974

 

 

101,418

 

 

104,167

 

 

99,267

 

 

84,137

Total Assets

 

$

3,074,790

 

$

3,081,083

 

$

2,989,838

 

$

2,940,877

 

$

2,914,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,120,521

 

$

1,109,789

 

$

1,051,755

 

$

1,030,865

 

$

993,839

Interest-bearing deposits

 

 

1,479,181

 

 

1,493,183

 

 

1,502,872

 

 

1,485,919

 

 

1,504,606

Total deposits

 

 

2,599,702

 

 

2,602,972

 

 

2,554,627

 

 

2,516,784

 

 

2,498,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note payable

 

 

 -

 

 

 -

 

 

24,357

 

 

25,464

 

 

26,571

Repurchase agreements

 

 

861

 

 

1,525

 

 

2,239

 

 

2,179

 

 

2,464

Junior subordinated debt

 

 

6,726

 

 

6,726

 

 

6,726

 

 

6,726

 

 

6,726

Other liabilities

 

 

15,930

 

 

23,646

 

 

20,768

 

 

17,760

 

 

16,699

Total Liabilities

 

 

2,623,219

 

 

2,634,869

 

 

2,608,717

 

 

2,568,913

 

 

2,550,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

451,571

 

 

446,214

 

 

381,121

 

 

371,964

 

 

363,643

Total Liabilities and Shareholders' Equity

 

$

3,074,790

 

$

3,081,083

 

$

2,989,838

 

$

2,940,877

 

$

2,914,548

 

4

 


 

CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Income (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

    

3/31/2018

    

12/31/2017

    

9/30/2017

    

6/30/2017

    

3/31/2017

    

Interest Income

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Interest and fees on loans

 

$

28,462

 

$

27,726

 

$

27,129

 

$

26,560

 

$

25,953

 

Securities

 

 

1,436

 

 

1,357

 

 

1,334

 

 

1,353

 

 

1,303

 

Federal Funds and interest-bearing deposits

 

 

1,187

 

 

1,283

 

 

1,106

 

 

813

 

 

742

 

Total Interest Income

 

 

31,085

 

 

30,366

 

 

29,569

 

 

28,726

 

 

27,998

 

Interest Expense

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Deposits

 

 

1,948

 

 

1,993

 

 

1,964

 

 

1,857

 

 

1,838

 

Repurchase agreements

 

 

 1

 

 

 —

 

 

 2

 

 

 1

 

 

 2

 

Note payable

 

 

 4

 

 

122

 

 

269

 

 

264

 

 

251

 

Junior subordinated debt

 

 

93

 

 

86

 

 

83

 

 

79

 

 

74

 

Total Interest Expense

 

 

2,046

 

 

2,201

 

 

2,318

 

 

2,201

 

 

2,165

 

Net Interest Income

 

 

29,039

 

 

28,165

 

 

27,251

 

 

26,525

 

 

25,833

 

Provision (Recapture) for Loan Losses

 

 

865

 

 

1,050

 

 

(1,654)

 

 

(694)

 

 

960

 

Net Interest Income After Provision (Recapture) for Loan Losses

 

 

28,174

 

 

27,115

 

 

28,905

 

 

27,219

 

 

24,873

 

Noninterest Income

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Deposit account service charges

 

 

1,478

 

 

1,388

 

 

1,395

 

 

1,517

 

 

1,500

 

Net gain (loss) on sale of assets

 

 

130

 

 

(7)

 

 

828

 

 

339

 

 

364

 

Card interchange fees

 

 

927

 

 

941

 

 

803

 

 

877

 

 

832

 

Earnings on bank-owned life insurance

 

 

451

 

 

460

 

 

459

 

 

335

 

 

326

 

Other

 

 

375

 

 

362

 

 

601

 

 

458

 

 

426

 

Total Noninterest Income

 

 

3,361

 

 

3,144

 

 

4,086

 

 

3,526

 

 

3,448

 

Noninterest Expense

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Salaries and employee benefits

 

 

12,695

 

 

14,021

 

 

11,829

 

 

11,299

 

 

11,424

 

Net occupancy expense

 

 

2,265

 

 

2,346

 

 

2,221

 

 

2,351

 

 

2,233

 

Regulatory fees

 

 

545

 

 

487

 

 

458

 

 

621

 

 

610

 

Data processing

 

 

683

 

 

674

 

 

662

 

 

651

 

 

642

 

Printing, stationery and office

 

 

411

 

 

415

 

 

348

 

 

370

 

 

347

 

Amortization of intangibles

 

 

255

 

 

263

 

 

267

 

 

271

 

 

278

 

Professional and director fees

 

 

919

 

 

1,168

 

 

606

 

 

706

 

 

625

 

Correspondent bank and customer related transaction expenses

 

 

67

 

 

67

 

 

67

 

 

78

 

 

74

 

Loan processing costs

 

 

118

 

 

141

 

 

115

 

 

133

 

 

72

 

Advertising, marketing and business development

 

 

506

 

 

508

 

 

266

 

 

508

 

 

179

 

Repossessed real estate and other asset expense

 

 

57

 

 

66

 

 

340

 

 

85

 

 

118

 

Security and protection expense

 

 

302

 

 

300

 

 

331

 

 

352

 

 

372

 

Telephone and communications

 

 

386

 

 

344

 

 

311

 

 

307

 

 

354

 

Other expenses

 

 

1,075

 

 

1,189

 

 

1,196

 

 

1,127

 

 

1,099

 

Total Noninterest Expense

 

 

20,284

 

 

21,989

 

 

19,017

 

 

18,859

 

 

18,427

 

Net Income Before Income Tax Expense

 

 

11,251

 

 

8,270

 

 

13,974

 

 

11,886

 

 

9,894

 

Income Tax Expense

 

 

2,139

 

 

6,313

 

 

3,927

 

 

3,181

 

 

3,032

 

Net Income

 

$

9,112

 

$

1,957

 

$

10,047

 

$

8,705

 

$

6,862

 

 

 

5

 


 

CBTX, INC. AND SUBSIDIARY

Financial Highlights (Unaudited)

(In thousands, except per share data and percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

    

3/31/2018

    

12/31/2017

    

9/30/2017

    

6/30/2017

    

3/31/2017

    

Profitability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

9,112

 

$

1,957

 

$

10,047

 

$

8,705

 

$

6,862

 

Basic earnings per share

 

$

0.37

 

$

0.08

 

$

0.46

 

$

0.39

 

$

0.31

 

Diluted earnings per share

 

$

0.37

 

$

0.08

 

$

0.45

 

$

0.39

 

$

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

 

1.20

%

 

0.25

%

 

1.34

%

 

1.20

%

 

0.95

%

Return on average shareholders' equity (1)

 

 

8.20

%

 

1.83

%

 

10.54

%

 

9.46

%

 

7.73

%

Net interest margin- tax equivalent (1)

 

 

4.23

%

 

4.06

%

 

4.07

%

 

4.08

%

 

4.02

%

Efficiency ratio (2)

 

 

62.60

%

 

70.23

%

 

60.69

%

 

62.76

%

 

62.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity and Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity to total assets

 

 

14.69

%

 

14.48

%

 

12.75

%

 

12.65

%

 

12.48

%

Tangible equity to tangible assets (3)

 

 

12.19

%

 

11.98

%

 

10.10

%

 

9.95

%

 

9.74

%

Common equity tier 1 capital ratio

 

 

14.12

%

 

14.19

%

 

12.23

%

 

12.00

%

 

11.32

%

Tier 1 leverage ratio

 

 

12.58

%

 

12.30

%

 

10.48

%

 

10.39

%

 

10.10

%

Tier 1 risk-based capital ratio

 

 

14.37

%

 

14.44

%

 

12.49

%

 

12.26

%

 

11.58

%

Total risk-based capital ratio

 

 

15.35

%

 

15.42

%

 

13.48

%

 

13.33

%

 

12.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding- Basic

 

 

24,833

 

 

23,629

 

 

22,063

 

 

22,062

 

 

22,062

 

Weighted average common shares outstanding- Diluted

 

 

24,954

 

 

23,742

 

 

22,138

 

 

22,148

 

 

22,162

 

Common shares outstanding at period end

 

 

24,833

 

 

24,833

 

 

22,063

 

 

22,063

 

 

22,062

 

Dividends per share

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

Book value per share

 

$

18.18

 

$

17.97

 

$

17.27

 

$

16.86

 

$

16.48

 

Tangible book value per share (3)

 

$

14.66

 

$

14.44

 

$

13.29

 

$

12.86

 

$

12.47

 

Employees - full-time equivalents

 

 

477

 

 

462

 

 

464

 

 

472

 

 

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.”

 

6

 


 

CBTX, INC. AND SUBSIDIARY

Net Interest Margin (Unaudited)

(In thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

3/31/2018

 

12/31/2017

 

3/31/2017

 

 

    

 

 

    

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)

 

$

2,319,463

 

$

28,462

 

4.98

%  

$

2,252,735

 

$

27,726

 

4.88

%  

$

2,178,626

 

$

25,953

 

4.83

%

Debt securities

 

 

223,730

 

 

1,436

 

2.60

%  

 

222,602

 

 

1,357

 

2.42

%  

 

217,086

 

 

1,303

 

2.43

%

Federal funds sold and other interest-earning assets

 

 

252,722

 

 

994

 

1.60

%  

 

317,484

 

 

1,093

 

1.37

%  

 

257,152

 

 

549

 

0.87

%

Nonmarketable equity securities

 

 

14,701

 

 

193

 

5.32

%  

 

14,698

 

 

190

 

5.13

%  

 

14,685

 

 

193

 

5.33

%

Total interest-earning assets

 

 

2,810,616

 

$

31,085

 

4.49

%  

 

2,807,519

 

$

30,366

 

4.29

%  

 

2,667,549

 

$

27,998

 

4.26

%

Allowance for loan losses

 

 

(24,866)

 

 

  

 

  

 

 

(24,127)

 

 

  

 

  

 

 

(25,419)

 

 

  

 

  

 

Noninterest-earnings assets

 

 

287,099

 

 

  

 

  

 

 

296,108

 

 

  

 

  

 

 

273,437

 

 

  

 

  

 

Total assets

 

$

3,072,849

 

 

  

 

  

 

$

3,079,500

 

 

  

 

  

 

$

2,915,567

 

 

  

 

  

 

Liabilities and Shareholders’ Equity

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Interest-bearing deposits

 

$

1,491,613

 

$

1,948

 

0.53

%  

$

1,519,631

 

$

1,993

 

0.52

%  

$

1,513,348

 

$

1,838

 

0.49

%

Repurchase agreements

 

 

1,418

 

 

 1

 

0.29

%  

 

1,793

 

 

 —

 

 —

%  

 

2,468

 

 

 2

 

0.33

%

Note payable

 

 

 —

 

 

 4

 

 —

%  

 

11,252

 

 

122

 

4.30

%  

 

26,965

 

 

251

 

3.78

%

Junior subordinated debt

 

 

10,826

 

 

93

 

3.48

%  

 

10,826

 

 

86

 

3.15

%  

 

10,826

 

 

74

 

2.77

%

Total interest-bearing liabilities

 

 

1,503,857

 

$

2,046

 

0.55

%  

 

1,543,502

 

$

2,201

 

0.56

%  

 

1,553,607

 

$

2,165

 

0.57

%

Noninterest-bearing liabilities:

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

 

  

 

 

  

 

  

 

Noninterest-bearing deposits

 

 

1,097,085

 

 

  

 

  

 

 

1,087,416

 

 

  

 

  

 

 

985,690

 

 

  

 

  

 

Other liabilities

 

 

21,165

 

 

  

 

  

 

 

23,271

 

 

  

 

  

 

 

16,421

 

 

  

 

  

 

Total noninterest-bearing liabilities

 

 

1,118,250

 

 

  

 

  

 

 

1,110,687

 

 

  

 

  

 

 

1,002,111

 

 

  

 

  

 

Shareholders’ equity

 

 

450,742

 

 

  

 

  

 

 

425,311

 

 

  

 

  

 

 

359,849