Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 January 26, 2016 - 4:15 PM EST
Print Email Article Font Down Font Up
LegacyTexas Financial Group, Inc. Reports Fourth Quarter and Full Year 2015 Earnings

PLANO, Texas, Jan. 26, 2016 /PRNewswire/ -- LegacyTexas Financial Group, Inc. (Nasdaq: LTXB) (the "Company"), the holding company for LegacyTexas Bank (the "Bank"), today announced net income of $16.4 million for the fourth quarter of 2015, a decrease of $1.4 million from the third quarter of 2015 and an increase of $11.0 million from the fourth quarter of 2014.

LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 48 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, visit www.LegacyTexasFinancialGroup.com.

"Despite energy headwinds, 2015 was a fabulous year for our company," said President and CEO Kevin Hanigan.  "We closed on the transformative Legacy merger in January, grew both our loans and deposits substantially, improved key operating metrics and issued $75 million of subordinated notes to support our growth.  We are fortunate to be operating in a business environment as strong and diversified as DFW."

Fourth Quarter 2015 Performance Highlights

  • Gross loans held for investment at December 31, 2015, excluding Warehouse Purchase Program loans, grew $377.7 million, or 8.1%, from September 30, 2015, with $317.3 million of growth in commercial real estate and commercial and industrial loans.
  • Deposits at December 31, 2015 increased by $456.7 million, or 9.6%, from September 30, 2015, with $227.0 million of growth in savings and money market deposits and $126.9 million of growth in time deposits.
  • The allowance for loan losses allocated to energy loans at December 31, 2015 totaled $12.0 million, or 2.3% of total energy loans (including both reserve based and midstream), up $7.1 million ($0.15 per share on a pre-tax basis, $0.10 per share after tax) from $4.9 million at September 30, 2015.
  • Net interest margin for the quarter ended December 31, 2015 was 3.94%, a six basis point decrease from the linked quarter and a ten basis point increase compared to the fourth quarter of 2014.
  • In November 2015, the Company completed a public offering of $75.0 million of fixed-to-floating rate subordinated notes due in 2025, the proceeds of which are being used for general corporate purposes, potential strategic acquisitions and investments in the Bank as regulatory capital.

Financial Highlights


At or For the Quarters Ended


December


September


December

(unaudited)

2015


2015


2014


(Dollars in thousands, except per share amounts)

Net interest income

$

63,742



$

61,188



$

35,830


Provision for loan losses

11,200



7,515



2,637


Non-interest income

11,593



11,851



5,294


Non-interest expense

39,043



37,827



29,796


Income tax expense

8,646



9,802



3,225


Net income

$

16,446



$

17,895



$

5,466








Basic earnings per common share

$

0.36



$

0.39



$

0.14


Basic core (non-GAAP) earnings per common share1

$

0.35



$

0.39



$

0.29


Weighted average common shares outstanding - basic

45,939,817



45,862,840



38,051,511


Estimated Tier 1 common risk-based capital ratio2

9.56

%


9.97

%


15.14

%

Total equity to total assets

10.45

%


11.52

%


13.65

%

Tangible common equity to tangible assets - Non-GAAP 1

8.29

%


9.12

%


13.01

%

1 See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

2 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.

Earnings for the fourth quarter of 2015 were impacted by a provision for loan losses totaling $11.2 million, a $3.7 million increase from the third quarter of 2015 and an $8.6 million increase from the fourth quarter of 2014.  The increased provision for loan losses directly resulted from the Company's effort to enhance its allowance for loan losses on energy loans due to a sustained increase in economic and regulatory uncertainty.  The increased provision for loan losses was partially offset by higher net interest income, which was up $2.6 million from the third quarter of 2015 and up $27.9 million from the fourth quarter of 2014.

Core (non-GAAP) net income (which is net income adjusted for the impact of merger and acquisition costs and certain other items) totaled $16.3 million for the quarter ended December 31, 2015, down $1.5 million from the third quarter of 2015 and up $5.1 million from the fourth quarter of 2014.  Basic earnings per share for the quarter ended December 31, 2015 was $0.36, a decrease of $0.03 from the third quarter of 2015 and an increase of $0.22 from the fourth quarter of 2014.  Core earnings per share for the fourth quarter of 2015 was $0.35, down $0.04 from the third quarter of 2015 and up $0.06 from the fourth quarter of 2014. 

Net income for the year ended December 31, 2015 was $70.9 million, up $39.6 million from the year ended December 31, 2014, which reflects the impact of the merger with LegacyTexas Group, Inc. on January 1, 2015.  Core (non-GAAP) net income totaled $71.9 million for the year ended December 31, 2015, up $33.0 million from the year ended December 31, 2014.  Basic earnings per share for the year ended December 31, 2015 was $1.54, an increase of $0.72 from the year ended December 31, 2014.  Core earnings per share for the year ended December 31, 2015 was $1.57, up $0.54 from the year ended December 31, 2014.  The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

Net Interest Income and Net Interest Margin


For the Quarters Ended


December


September


December

(unaudited)

2015


2015


2014


(Dollars in thousands)

Interest income:






Loans held for investment, excluding Warehouse Purchase Program loans

$

59,405



$

55,778



$

31,667


Warehouse Purchase Program loans

6,473



7,073



5,440


Loans held for sale

176



177




Securities

3,318



3,363



2,808


Interest-earning deposit accounts

210



137



64


Total interest income

$

69,582



$

66,528



$

39,979


Net interest income

$

63,742



$

61,188



$

35,830


Net interest margin

3.94

%


4.00

%


3.84

%

Selected average balances:






Total earning assets

$

6,469,511



$

6,117,873



$

3,732,058


Total loans held for investment

5,588,437



5,291,291



3,120,214


Total securities

631,916



648,241



505,692


Total deposits

4,939,893



4,683,346



2,612,125


Total borrowings

1,075,948



984,708



654,396


Total non-interest-bearing demand deposits

1,198,337



1,108,928



473,996


Total interest-bearing liabilities

4,817,504



4,559,126



2,792,525


Net interest income for the quarter ended December 31, 2015 was $63.7 million, a $2.6 million increase from the third quarter of 2015 and a $27.9 million increase from the fourth quarter of 2014.  The $2.6 million increase from the linked quarter was primarily due to an increase in interest income on loans, which was driven by increased volume in all loan categories with the exception of Warehouse Purchase Program and other consumer loans.  The average balance of commercial and industrial loans increased by $162.7 million to $1.50 billion from the third quarter of 2015, resulting in a $1.9 million increase in interest income.   The average balance of commercial real estate loans increased by $133.7 million to $2.10 billion from the third quarter of 2015, which was partially offset by an 18 basis point linked-quarter decrease in the average yield earned on this portfolio, resulting in an $833,000 increase in interest income.  The average balance of construction and land loans and consumer real estate loans increased by $38.0 million and $40.3 million, respectively, compared to the third quarter of 2015, leading to increases in interest income of $511,000 and $476,000, respectively.  The increased interest income related to commercial, construction and consumer real estate loan volume was partially offset by a $67.9 million linked-quarter decline in the average balance of Warehouse Purchase Program balances, which reduced interest income by $600,000.

Interest income on loans for the fourth quarter of 2015 included $1.4 million in accretion of purchase accounting fair value adjustments on loans acquired through the merger with LegacyTexas Group, Inc., a decrease of $633,000 from the $2.0 million in accretion income recorded on these loans for the third quarter of 2015. The $1.4 million includes $550,000 in accretion income recorded on acquired commercial real estate loans, $229,000 in accretion income recorded on acquired commercial and industrial loans, $78,000 in accretion income recorded on acquired construction and land loans and $520,000 recorded on acquired consumer loans.  Accretion of purchase accounting fair value adjustments related to the LegacyTexas Group, Inc. acquisition, as well as a smaller amount related to the Highlands Bank acquisition in 2012, contributed 13 basis points, six basis points and 22 basis points to the average yields on commercial real estate, commercial and industrial and consumer real estate loans, respectively, for the fourth quarter of 2015, compared to 18 basis points, 12 basis points and 22 basis points, respectively, for the third quarter of 2015. 

The $27.9 million increase in net interest income, compared to the fourth quarter of 2014, was primarily due to a $28.9 million increase in interest income on loans, which was driven by increased volume in all loan categories resulting from the merger with LegacyTexas Group, Inc. on January 1, 2015, as well as organic growth during the year.  The average balance of commercial real estate loans increased by $886.4 million from the fourth quarter of 2014, resulting in a $10.5 million increase in interest income.  The $886.4 million in growth includes $551.0 million in commercial real estate loans acquired through the merger with LegacyTexas Group, Inc.  Excluding these loans, the average balance of commercial real estate loans increased by $335.4 million from the fourth quarter of 2014.  The average balance of commercial and industrial loans increased by $772.2 million from the fourth quarter of 2014, resulting in an $8.9 million increase in interest income.  The $772.2 million in growth includes $337.1 million in commercial and industrial loans acquired through the merger with LegacyTexas Group, Inc. Excluding these loans, the average balance of commercial and industrial loans increased by $435.1 million from the fourth quarter of 2014.  The average balance of consumer real estate loans increased by $376.9 million from the fourth quarter of 2014, resulting in a $4.5 million increase in interest income.  The $376.9 million in growth includes $264.0 million in consumer real estate loans acquired through the merger with LegacyTexas Group, Inc.  Excluding these loans, the average balance of consumer real estate loans increased by $112.9 million from the fourth quarter of 2014.  The average balance of Warehouse Purchase Program loans increased by $158.2 million to $777.9 million from the fourth quarter of 2014, which resulted in a $1.0 million increase in interest income.

Interest expense for the quarter ended December 31, 2015 increased by $503,000 compared to the linked quarter, which was primarily due to $462,000 in interest expense resulting from the $75.0 million of fixed-to-floating rate subordinated notes issued by the Company in the fourth quarter of 2015.  Compared to the fourth quarter of 2014, interest expense for the quarter ended December 31, 2015 increased by $1.7 million, primarily due to the additional interest expense associated with the subordinated notes and an increase in interest expense on deposits, which was driven by increased volume in all deposit categories resulting from the merger with LegacyTexas Group, Inc. on January 1, 2015, as well as organic growth since December 31, 2014.  An $859.1 million increase in the average balance of savings and money market deposits to $2.03 billion from the fourth quarter of 2014 was partially offset by a 13 basis point reduction in the average rate paid on such deposits, resulting in a $32,000 increase in interest expense.  The $859.1 million in growth includes $534.6 million in savings and money market deposits acquired through the merger with LegacyTexas Group, Inc.  Excluding these deposits, the average balance of savings and money market deposits increased by $324.5 million from the fourth quarter of 2014. The average balance of time deposits increased by $451.3 million to $965.1 million from the fourth quarter of 2014, resulting in an $890,000 increase in interest expense.  The $451.3 million in growth includes $336.8 million in time deposits acquired through the merger with LegacyTexas Group, Inc.  Excluding these deposits, the average balance of time deposits increased by $114.5 million from the fourth quarter of 2014.  The average balance of interest-bearing demand deposits increased by $293.0 million to $748.2 million from the fourth quarter of 2014, resulting in a $482,000 increase in interest expense.  The $293.0 million in growth includes $258.7 million in interest-bearing demand deposits acquired through the merger with LegacyTexas Group, Inc.  Excluding these deposits, the average balance of interest-bearing demand deposits increased by $34.3 million from the fourth quarter of 2014.

The net interest margin for the fourth quarter of 2015 was 3.94%, a six basis point decrease from the third quarter of 2015 and a ten basis point increase from the fourth quarter of 2014.  Accretion of interest resulting from the merger with LegacyTexas Group, Inc. on January 1, 2015, as well as the 2012 Highlands acquisition, contributed ten basis points to the net interest margin and average yield on earning assets for the quarter ended December 31, 2015, compared to 12 basis points for the quarter ended September 30, 2015 and three basis points for the quarter ended December 31, 2014.  The average yield on earning assets for the fourth quarter of 2015 was 4.30%, a five basis point decline from the third quarter of 2015 and a two basis point increase from the fourth quarter of 2014.  The cost of deposits for the fourth quarter of 2015 was 0.29%, unchanged from the third quarter of 2015 and down four basis points from the fourth quarter of 2014.

Non-interest Income

Non-interest income for the fourth quarter of 2015 was $11.6 million, a $258,000 decrease from the third quarter of 2015 and a $6.3 million increase from the fourth quarter of 2014.  Core non-interest income for the fourth quarter of 2015, which excludes one-time gains and losses on assets and security sales, was $11.4 million, down $305,000 from the third quarter of 2015 and up $6.1 million from the fourth quarter of 2014.  Service charges and other fees decreased by $154,000 from the third quarter of 2015, which includes a $520,000 decrease in commercial loan fee income from fees collected in the third quarter of 2015 that were not duplicated in the fourth quarter, as well as a $92,000 linked-quarter decline in Warehouse Purchase Program fee income.  These declines in commercial loan and Warehouse Purchase Program fee income were partially offset by a linked-quarter $394,000 increase in debit card and ATM fee income.

The $6.3 million increase in non-interest income from the fourth quarter of 2014 was primarily due to a $3.1 million increase in service charges and other fees, which was driven by the addition of $1.3 million of title income, as well as increased debit card income and service charges related to accounts acquired through the merger with LegacyTexas Group, Inc.  Additionally, the Company recognized $1.9 million in net gains on the sale of mortgage loans during the fourth quarter of 2015, which includes the gain recognized on $47.8 million of one-to four-family mortgage loans that were sold or committed for sale during the fourth quarter of 2015, fair value changes on mortgage derivatives and mortgage fees collected.  Prior to the January 1, 2015 merger with LegacyTexas Group, Inc., the Company did not originate or sell mortgage loans to outside investors; therefore, a comparable gain was not recorded in the fourth quarter of 2014.  Other non-interest income increased by $883,000 from the fourth quarter of 2014, primarily due to $799,000 of insurance income added through the acquisition of LegacyTexas Group, Inc.

Non-interest Expenses

Non-interest expense for the quarter ended December 31, 2015 was $39.0 million, a $1.2 million increase from the third quarter of 2015 and a $9.2 million increase from the fourth quarter of 2014.  Salaries and employee benefits expense decreased by $259,000 from the third quarter of 2015, primarily due to lower health care claims compared to the third quarter of 2015, as well as a reduction in share-based compensation expense due to a decline in the Company's stock price.  Advertising expense increased by $495,000 from the third quarter of 2015, primarily due to increased donations to support community outreach, while other non-interest expense increased by $410,000 compared to the linked quarter, primarily due to increased debit card fraud losses incurred during the fourth quarter of 2015.

The $9.2 million increase in non-interest expense from the fourth quarter of 2014 includes an $8.3 million decrease in merger and acquisition costs related to the merger with LegacyTexas Group, Inc.  Excluding the impact of these merger costs, core non-interest expense increased by $17.5 million, which was driven by a $10.2 million increase in salaries and employee benefits expense, primarily due to the addition of employees and grants of share-based compensation related to the merger with LegacyTexas Group, Inc. The merger with LegacyTexas Group, Inc. also resulted in a $1.7 million increase in occupancy and equipment expense, a $1.2 million increase in office operations expense and a $1.4 million increase in data processing expense for the quarter ended December 31, 2015, compared to the same period in 2014. 

Financial Condition - Loans

Gross loans held for investment at December 31, 2015, excluding Warehouse Purchase Program loans, grew $377.7 million from September 30, 2015, which included growth in all loan categories with the exception of other consumer loans, which declined by $5.2 million.  Commercial and industrial and commercial real estate loans at December 31, 2015 increased by $175.4 million and $141.9 million, respectively, from September 30, 2015, while consumer real estate and construction and land loans increased by $56.2 million and $9.3 million, respectively, for the same period.  Warehouse Purchase Program loans at December 31, 2015 increased by $83.3 million from September 30, 2015, and by $257.3 million compared to December 31, 2014.

Compared to December 31, 2014, gross loans held for investment, excluding Warehouse Purchase Program loans, grew $2.43 billion, which includes $1.40 billion in loans acquired from LegacyTexas Group, Inc. on January 1, 2015.  On a year over year basis, commercial real estate and commercial and industrial loans increased by $911.7 million and $830.8 million, respectively, while consumer real estate and construction and land loans increased by $412.6 million and $248.4 million, respectively, for the same period.

Energy loans, which are reported as commercial and industrial loans, totaled $459.8 million at December 31, 2015, up $28.4 million from $431.4 million at September 30, 2015 and up $100.2 million from December 31, 2014. In May 2013, the Company formed its Energy Finance group, which is comprised of a group of seasoned lenders, executives and credit risk professionals with more than 100 years of combined Texas energy experience, to focus on providing loans to private and public oil and gas companies throughout the United States. The group also offers the Bank's full array of commercial services, including Treasury Management and letters of credit, to its customers.  Substantially all of the loans in the Energy portfolio are reserve based loans, secured by deeds of trust on properties containing proven oil and natural gas reserves.  In addition to the reserve based energy loans, the Company has loans categorized as "Midstream and Other," which are typically related to the transmission of oil and natural gas and would only be indirectly impacted from declining commodity prices.  At December 31, 2015, "Midstream and Other" loans had a total outstanding balance of $64.6 million.

Financial Condition - Deposits

Total deposits at December 31, 2015 increased by $456.7 million from September 30, 2015, with all deposit categories growing on a linked-quarter basis, including a $227.0 million increase in savings and money market deposits and a $126.9 million increase in time deposits.  Interest-bearing and non-interest-bearing demand deposits increased by $68.8 million and $34.0 million, respectively, compared to September 30, 2015. 

Compared to December 31, 2014, total deposits increased by $2.57 billion, which includes $1.63 billion of deposits acquired from LegacyTexas Group, Inc. on January 1, 2015.  On a year over year basis, savings and money market and time deposits increased by $1.03 billion and $513.4 million, respectively, while non-interest-bearing demand and interest-bearing demand deposits increased by $675.9 million and $346.6 million, respectively, for the same period.  At December 31, 2015, non-interest-bearing demand deposits comprised 22.4% of total deposits, compared to 18.6% of total deposits at December 31, 2014.

Credit Quality


At or For the Quarters Ended


December


September


December

(unaudited)

2015


2015


2014


(Dollars in thousands)

Net charge-offs

$

489



$

2,000



$

(327)


Net charge-offs/Average loans held for investment, excluding Warehouse Purchase Program loans

0.04

%


0.18

%


(0.05)

%

Net charge-offs/Average loans held for investment

0.04



0.15



(0.04)


Provision for loan losses

$

11,200



$

7,515



$

2,637


Non-performing loans ("NPLs")

38,216



66,413



23,507


NPLs/Total loans held for investment, excluding Warehouse Purchase Program loans

0.75

%


1.42

%


0.89

%

NPLs/Total loans held for investment

0.63



1.18



0.69


Non-performing assets ("NPAs")

$

44,908



$

71,053



$

24,058


NPAs to total assets

0.58

%


1.03

%


0.58

%

NPAs/Loans held for investment and foreclosed assets, excluding Warehouse Purchase Program loans

0.89



1.51



0.91


NPAs/Loans held for investment and foreclosed assets

0.73



1.26



0.70


Allowance for loan losses

$

47,093



$

36,382



$

25,549


Allowance for loan losses/Total loans held for investment, excluding Warehouse Purchase Program loans

0.93

%


0.78

%


0.97

%

Allowance for loan losses/Total loans held for investment

0.77



0.64



0.75


Allowance for loan losses/Total loans held for investment, excluding acquired loans & Warehouse Purchase Program loans 1

1.14



1.00



1.00


Allowance for loan losses/NPLs

123.23



54.78



108.69


Excludes loans acquired in the Highlands and LegacyTexas transactions, which were initially recorded at fair value.

The Company recorded a provision for loan losses of $11.2 million for the quarter ended December 31, 2015, an increase of $3.7 million from the quarter ended September 30, 2015 and an increase of $8.6 million from the quarter ended December 31, 2014.  The increase in the provision for loan losses on a linked-quarter basis, as well as compared to the fourth quarter of 2014, was primarily related to increased qualitative reserve factors applied to the energy portfolio.  The Company increased these qualitative factors in the fourth quarter of 2015 due to the impact of continued pressure on the price of oil, which has led to a sustained increase in economic and regulatory uncertainty surrounding energy loans.  Also, over the past year, risk rating downgrades on energy loans have increased, primarily in the special mention category, which consists entirely of performing loans.  The below table shows criticized energy loans at December 31, 2015, September 30, 2015 and December 31, 2014. 


December 31,

 2015


September 30,

 2015


Linked-Quarter

 Change


December 31,

 2014


Year-over-Year

 Change


(Dollars in thousands)

Special Mention (all performing)

$

68,348



$

30,457



$

37,891



$



$

68,348


Substandard (performing)

38,712



8,108



30,604



12,000



26,712


Substandard (non-performing)

12,110



36,217



(24,107)





12,110



$

119,170



$

74,782



$

44,388



$

12,000



$

107,170


The $24.1 million decrease in substandard non-performing energy loans from September 30, 2015 was primarily due to the sale of a $24.3 million non-performing energy relationship to an unrelated third party during the fourth quarter of 2015.  The sale generated a $923,000 interest recovery and resulted in no recorded loss. The loan purchase was financed by the Company to a new, unrelated borrower the Company believes offers sufficient collateral, guarantor support and experience to ensure the successful resolution of the former criticized energy relationship.  The resulting new loan, which is performing, was graded as substandard at December 31, 2015 and included in the $38.7 million reported above.

The increase in special mention and substandard performing energy loans on a linked-quarter and year-over-year basis resulted from collateral value deterioration due to commodity price declines.  At December 31, 2015, the Company did not have any specific loss reserves set aside for these loans.  The Company continues to take action to improve the risk profile of the criticized energy loans by instituting monthly commitment reductions, obtaining additional collateral, obtaining additional guarantor support and/or requiring additional equity injections or asset sales.

Due to the increase in qualitative reserve factors discussed above, the allowance for loan losses allocated to energy loans at December 31, 2015 totaled $12.0 million, up $7.1 million from $4.9 million at September 30, 2015 and up $8.6 million from $3.4 million at December 31, 2014.  These reserve amounts result entirely from the increase in qualitative factors and the increase in the energy portfolio, as the Company has not experienced a loss on energy loans to date, which we believe is a reflection of prudent risk mitigation techniques.  These techniques include sound underwriting (reasonable advance rates based on number and diversification of wells), sound policy (requiring hedges on production sales) and conservative collateral valuations (frequent borrowing base determinations at prices below NYMEX posted rates).  All borrowing base valuations are performed by experienced and nationally recognized third party firms intimately familiar with the properties and their production history.  The Company believes that the current level of loan loss reserve for energy loans is sufficient to cover credit losses in the portfolio based on currently available information; however, future sustained declines in oil pricing could lead to further risk rating downgrades, additional loan loss reserves, or losses.

In addition to the changes in qualitative factors related to energy lending, the increase in loan loss reserves and provision expense was caused by increased organic loan production, as well as loans acquired through the merger with LegacyTexas Group, Inc. that were re-underwritten following completion of the merger.  During the fourth quarter of 2015, the Company added $499.3 million in net loan production that required additional allowance for loan losses, which includes loans acquired through the merger with LegacyTexas Group, Inc. that were re-underwritten pursuant to this process.

Net charge-offs for the fourth quarter of 2015 totaled $489,000, a decrease of $1.5 million from the third quarter of 2015 and an increase of $816,000 from the fourth quarter of 2014.   The $24.7 million decrease in non-performing commercial and industrial loans from the third quarter of 2015 was primarily due to the $24.3 million energy relationship discussed above.

Subsequent Events

The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2015 on Form 10-K.  As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2015 and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will host an investor conference call to review these results on Wednesday, January 27, 2016 at 8 a.m. Central Time.  Participants may pre-register for the call by visiting http://dpregister.com/10078603 and will receive a unique PIN number, which can be used when dialing in for the call.  This will allow attendees to enter the call immediately.  Alternatively, participants may call (toll-free) 1-877-513-4119 at least five minutes prior to the call to be placed into the call by an operator.  International participants are asked to call 1-412-902-4148 and participants in Canada are asked to call (toll-free) 1-855-669-9657.

The call and corresponding presentation slides will be webcast live on the home page of the Company's website, www.legacytexasfinancialgroup.com.  An audio replay will be available one hour after the conclusion of the call at 1-877-344-7529, Conference #10078603.   This replay, as well as the webcast, will be available until February 27, 2016.

About LegacyTexas Financial Group, Inc.

LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 47 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, please visit www.legacytexasfinancialgroup.com or www.legacytexas.com.

This document and other filings by LegacyTexas Financial Group, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), as well as press releases or other public or stockholder communications released by the Company, may contain forward-looking statements, including, but not limited to, (i) statements regarding the financial condition, results of operations and business of the Company, (ii) statements about the Company's plans, objectives, expectations and intentions and other statements that are not historical facts and (iii) other statements identified by the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions that are intended to identify "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on current beliefs and expectations of the Company's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the expected cost savings, synergies and other financial benefits from the Company-LegacyTexas Group, Inc. merger (the "Merger") might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters might be greater than expected; changes in economic conditions; legislative changes; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; fluctuations in the price of oil, natural gas and other commodities; competition; changes in management's business strategies and other factors set forth in the Company's filings with the SEC.

The factors listed above could materially affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake - and specifically declines any obligation - to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.  When considering forward-looking statements, you should keep in mind these risks and uncertainties. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. You should refer to our periodic and current reports filed with the SEC for specific risks that could cause actual results to be significantly different from those expressed or implied by any forward-looking statements.

LegacyTexas Financial Group, Inc.

Consolidated Balance Sheets



December 31,
2015


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
2014


(Dollars in thousands)

ASSETS

(unaudited)


(unaudited)


(unaudited)


(unaudited)



Cash and due from financial institutions

$

53,847



$

47,720



$

48,911



$

53,739



$

28,416


Short-term interest-bearing deposits in other financial institutions

561,792



193,994



143,106



230,175



103,605


Total cash and cash equivalents

615,639



241,714



192,017



283,914



132,021


Securities available for sale, at fair value

311,708



318,219



314,040



290,615



199,699


Securities held to maturity

240,433



249,838



254,526



261,670



241,920


Total securities

552,141



568,057



568,566



552,285



441,619


Loans held for sale

22,535



22,802



19,903



23,983




Loans held for investment:










Loans held for investment - Warehouse Purchase Program

1,043,719



960,377



1,084,997



1,038,886



786,416


Loans held for investment

5,066,507



4,688,826



4,394,786



4,196,710



2,633,680


Gross loans

6,132,761



5,672,005



5,499,686



5,259,579



3,420,096


Less: allowance for loan losses and deferred fees on loans held for investment

(48,953)



(39,611)



(34,264)



(31,565)



(28,476)


Net loans

6,083,808



5,632,394



5,465,422



5,228,014



3,391,620


FHLB stock and other restricted securities, at cost

63,075



63,891



69,224



65,470



44,084


Bank-owned life insurance

55,231



54,920



54,614



54,339



36,193


Premises and equipment, net

77,637



79,153



80,095



81,853



48,743


Goodwill

180,776



180,632



180,632



179,258



29,650


Other assets

63,633



58,082



59,054



65,818



40,184


Total assets

$

7,691,940



$

6,878,843



$

6,669,624



$

6,510,951



$

4,164,114












LIABILITIES AND SHAREHOLDERS' EQUITY







Non-interest-bearing demand

$

1,170,272



$

1,136,255



$

1,084,146



$

1,030,861



$

494,376


Interest-bearing demand

819,350



750,551



734,430



713,199



472,703


Savings and money market

2,209,698



1,982,729



1,834,075



1,826,097



1,176,749


Time

1,027,391



900,515



875,132



822,904



513,981


Total deposits

5,226,711



4,770,050



4,527,783



4,393,061



2,657,809


FHLB advances

1,439,904



1,152,916



1,217,305



1,171,623



862,907


Repurchase agreements

83,269



71,643



66,172



89,772



25,000


Subordinated debt

84,992



11,522



11,474



26,840




Accrued expenses and other liabilities

52,988



80,075



69,966



68,596



50,175


Total liabilities

6,887,864



6,086,206



5,892,700



5,749,892



3,595,891


Shareholders' equity










Common stock

476



476



476



476



400


Additional paid-in capital

576,753



573,929



571,083



568,396



386,549


Retained earnings

240,496



230,720



219,493



205,431



195,327


Accumulated other comprehensive income (loss), net

(133)



1,395



122



1,372



930


Unearned Employee Stock Ownership Plan (ESOP) shares

(13,516)



(13,883)



(14,250)



(14,616)



(14,983)


Total shareholders' equity

804,076



792,637



776,924



761,059



568,223


Total liabilities and shareholders' equity

$

7,691,940



$

6,878,843



$

6,669,624



$

6,510,951



$

4,164,114


 

LegacyTexas Financial Group, Inc.

Consolidated Quarterly Statements of Income (unaudited)



For the Quarters Ended


Fourth Quarter 2015 Compared to:


Dec 31,
2015


Sep 30,
2015


Jun 30,
2015


Mar 31,
2015


Dec 31,
2014


Third Quarter

 2015


Fourth Quarter

2014

Interest and dividend income

(Dollars in thousands)

Loans, including fees

$

66,054



$

63,025



$

61,551



$

58,035



$

37,107



$

3,029


4.8

%


$

28,947


78.0

%

Taxable securities

2,264



2,292



2,252



2,499



2,109



(28)


(1.2)



155


7.3


Nontaxable securities

780



773



724



718



561



7


0.9



219


39.0


Interest-bearing deposits in other financial institutions

210



137



139



158



64



73


53.3



146


228.1


FHLB and Federal Reserve Bank stock and other

274



298



301



208



138



(24)


(8.1)



136


98.6



69,582



66,525



64,967



61,618



39,979



3,057


4.6



29,603


74.0


Interest expense
















Deposits

3,569



3,382



3,049



3,127



2,165



187


5.5



1,404


64.8


FHLB advances

1,466



1,606



1,774



1,706



1,778



(140)


(8.7)



(312)


(17.5)


Repurchase agreement and other borrowings

805



349



323



459



206



456


130.7



599


290.8



5,840



5,337



5,146



5,292



4,149



503


9.4



1,691


40.8


Net interest income

63,742



61,188



59,821



56,326



35,830



2,554


4.2



27,912


77.9


Provision for loan losses

11,200



7,515



3,750



3,000



2,637



3,685


49.0



8,563


324.7


Net interest income after provision for loan losses

52,542



53,673



56,071



53,326



33,193



(1,131)


(2.1)



19,349


58.3


Non-interest income
















Service charges and other fees

8,041



8,195



7,941



6,759



4,963



(154)


(1.9)



3,078


62.0


Net gain on sale of mortgage loans

1,899



1,944



2,121



2,072





(45)


(2.3)



1,899


100.0


Bank-owned life insurance income

432



424



424



419



183



8


1.9



249


136.1


Gain (loss) on sale of available for sale securities

17



(25)





211





42


N/M 1



17


100.0


Gain on sale and disposition of assets

188



228



429



28



15



(40)


(17.5)



173


1,153.3


Other

1,016



1,085



1,049



(82)



133



(69)


(6.4)



883


663.9



11,593



11,851



11,964



9,407



5,294



(258)


(2.2)



6,299


119.0


















Non-interest expense
















Salaries and employee benefits

23,374



23,633



22,549



22,971



13,137



(259)


(1.1)



10,237


77.9


Merger and acquisition costs





8



1,545



8,282






(8,282)


(100.0)


Advertising

1,140



645



1,048



940



425



495


76.7



715


168.2


Occupancy and equipment

3,592



3,622



3,838



3,808



1,856



(30)


(0.8)



1,736


93.5


Outside professional services

1,114



934



625



750



711



180


19.3



403


56.7


Regulatory assessments

1,266



1,026



1,146



822



700



240


23.4



566


80.9


Data processing

3,116



2,830



2,537



2,795



1,753



286


10.1



1,363


77.8


Office operations

2,773



2,879



2,652



2,393



1,621



(106)


(3.7)



1,152


71.1


Other

2,668



2,258



2,505



1,753



1,311



410


18.2



1,357


103.5



39,043



37,827



36,908



37,777



29,796



1,216


3.2



9,247


31.0


Income before income tax expense

25,092



27,697



31,127



24,956



8,691



(2,605)


(9.4)



16,401


188.7


Income tax expense

8,646



9,802



10,876



8,632



3,225



(1,156)


(11.8)



5,421


168.1


Net income

$

16,446



$

17,895



$

20,251



$

16,324



$

5,466



$

(1,449)


(8.1)

%


$

10,980


200.9

%

1N/M - not meaningful

 

LegacyTexas Financial Group, Inc.

Consolidated Statements of Income for the Years Ended December 31,


(Dollar amounts in thousands, except per share data)

2015


2014


2013

Interest and dividend income

(unaudited)





Loans, including fees

$

248,665



$

137,255



$

124,522


Taxable securities

9,307



9,352



9,780


Nontaxable securities

2,995



2,248



2,133


Interest-bearing deposits in other financial institutions

631



249



126


FHLB and Federal Reserve Bank stock and other

1,094



543



528



262,692



149,647



137,089


Interest expense






Deposits

13,127



8,212



9,545


FHLB advances

6,552



7,610



8,503


Repurchase agreement and other borrowings

1,936



818



821



21,615



16,640



18,869


Net interest income

241,077



133,007



118,220


Provision for loan losses

25,465



6,721



3,199


Net interest income after provision for loan losses

215,612



126,286



115,021


Non-interest income






Service charges and other fees

30,936



19,382



18,715


Net gain on sale of mortgage loans

8,036






Bank-owned life insurance income

1,699



628



649


Gain (loss) on sale of available-for-sale securities

203





(177)


Gain on sale and disposition of assets

873



658



835


Other

3,068



75



1,811



44,815



20,743



21,833


Non-interest expense






Salaries and employee benefits

92,527



55,057



53,328


Merger and acquisition costs

1,553



10,291



663


Advertising

3,773



1,535



2,690


Occupancy and equipment

14,860



7,374



7,675


Outside professional services

3,332



2,291



2,760


Regulatory assessments

4,260



2,713



2,477


Data processing

11,278



6,862



6,727


Office operations

10,697



6,584



6,783


Other

9,275



5,385



5,774



151,555



98,092



88,877


Income before income tax expense

108,872



48,937



47,977


Income tax expense

37,956



17,659



16,289


Net income

$

70,916



$

31,278



$

31,688


Earnings per share:






Basic

$

1.54



$

0.82



$

0.83


Diluted

$

1.53



$

0.81



$

0.83


Dividends declared per share

$

0.54



$

0.48



$

0.32


 

LegacyTexas Financial Group, Inc.

Selected Financial Highlights (unaudited)



At or For the Quarters Ended


December 31,
 2015


September 30,
 2015


December 31,
 2014


(Dollars in thousands, except per share amounts)

SHARE DATA:






Weighted average common shares outstanding- basic

45,939,817



45,862,840



38,051,511


Weighted average common shares outstanding- diluted

46,267,956



46,188,461



38,275,814


Shares outstanding at end of period

47,645,826



47,640,193



40,014,851


Income available to common shareholders1

$

16,336



$

17,768



$

5,412


Basic earnings per common share

0.36



0.39



0.14


Basic core (non-GAAP) earnings per common share2

0.35



0.39



0.29


Diluted earnings per common share

0.35



0.38



0.14


Dividends declared per share

0.14



0.14



0.12


Total shareholders' equity

804,076



792,637



568,223


Common shareholders' equity per share (book value per share)

16.88



16.64



14.20


Tangible book value per share- Non-GAAP2

13.06



12.82



13.44


Market value per share for the quarter:






High

31.97



31.32



27.61


Low

24.59



26.11



21.33


Close

25.02



30.48



23.85


KEY RATIOS:






Return on average common shareholders' equity

8.22

%


9.11

%


3.83

%

Core return on average common shareholders' equity2

8.15



9.05



7.85


Return on average assets

0.95



1.10



0.56


Core return on average assets2

0.95



1.09



1.14


Efficiency ratio3

51.85



51.89



52.22


Estimated Tier 1 common equity risk-based capital ratio4

9.56



9.97




Estimated total risk-based capital ratio4

11.58



10.75



15.87


Estimated Tier 1 risk-based capital ratio4

9.73



10.16



15.14


Estimated Tier 1 leverage ratio4

9.46



9.79



13.86


Total equity to total assets

10.45



11.52



13.65


Tangible equity to tangible assets- Non-GAAP2

8.29



9.12



13.01


Number of employees- full-time equivalent

840



831



517


1 Net of distributed and undistributed earnings to participating securities.

2 See the section labeled "Supplemental Information- Non-GAAP Financial Measures" at the end of this document.

3 Calculated by dividing total non-interest expense by net interest income plus non-interest income, excluding gain (loss) on foreclosed and fixed assets, changes in value of the CRA Funds, amortization of intangible assets, gains (losses) from securities transactions and merger and acquisition costs.

4 Calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve.  The Tier 1 common equity risk-based capital ratio was added as a required regulatory capital ratio in March 2015.

 

LegacyTexas Financial Group, Inc.

Selected Loan Data (unaudited)



At the Quarter Ended


December 31,
2015


September 30,
2015


June 30,
 2015


March 31,
 2015


December 31,
2014

Loans held for investment:

(Dollars in thousands)

Commercial real estate

$

2,177,543



$

2,035,631



$

1,930,256



$

1,890,518



$

1,265,868


Warehouse Purchase Program

1,043,719



960,377



1,084,997



1,038,886



786,416


Commercial and industrial

1,612,669



1,437,241



1,308,168



1,212,328



781,824


Construction and land

269,708



260,433



230,582



215,752



21,298


Consumer real estate

936,757



880,532



845,982



792,995



524,199


Other consumer

69,830



74,989



79,798



85,117



40,491


Gross loans held for investment

$

6,110,226



$

5,649,203



$

5,479,783



$

5,235,596



$

3,420,096


Non-performing assets:










Commercial real estate

$

11,418



$

13,717



$

3,549



$

6,745



$

6,703


Commercial and industrial

16,877



41,538



12,498



5,691



5,778


Construction and land

33



39



141



141



149


Consumer real estate

9,781



10,894



10,419



9,946



10,591


Other consumer

107



225



243



346



286


   Total non-performing loans

38,216



66,413



26,850



22,869



23,507


Foreclosed assets

6,692



4,640



4,553



6,274



551


   Total non-performing assets

$

44,908



$

71,053



$

31,403



$

29,143



$

24,058


Total non-performing assets to total assets

0.58

%


1.03

%


0.47

%


0.45

%


0.58

%

Total non-performing loans to total loans held for investment, excluding Warehouse Purchase Program loans

0.75

%


1.42

%


0.61

%


0.54

%


0.89

%

Total non-performing loans to total loans held for investment

0.63

%


1.18

%


0.49

%


0.44

%


0.69

%

Allowance for loan losses to non-performing loans

123.23

%


54.78

%


114.96

%


123.64

%


108.69

%

Allowance for loan losses to total loans held for investment, excluding Warehouse Purchase Program loans

0.93

%


0.78

%


0.70

%


0.67

%


0.97

%

Allowance for loan losses to total loans held for investment

0.77

%


0.64

%


0.56

%


0.54

%


0.75

%

Allowance for loan losses to total loans held for investment, excluding acquired loans and Warehouse Purchase Program loans 1

1.14

%


1.00

%


0.98

%


1.00

%


1.00

%

Troubled debt restructured loans ("TDRs"):

(Dollars in thousands)

Performing TDRs:










Commercial real estate

$

161



$

163



$

733



$

738



$

702


Commercial and industrial

30



266



142



147



153


Consumer real estate

368



134



202



203



204


Other consumer

46



1



35



37



39


   Total performing TDRs

$

605



$

564



$

1,112



$

1,125



$

1,098


Non-performing TDRs:2










Commercial real estate

$

946



$

3,233



$

3,240



$

6,616



$

6,569


Commercial and industrial

1,793



1,760



1,862



1,985



2,031


Construction and land





101



101



103


Consumer real estate

3,393



3,808



3,608



3,936



4,034


Other consumer

75



160



155



201



245


   Total non-performing TDRs

$

6,207



$

8,961



$

8,966



$

12,839



$

12,982


Allowance for loan losses:










Balance at beginning of period

$

36,382



$

30,867



$

28,276



$

25,549



$

22,585


   Provision expense

11,200



7,515



3,750



3,000



2,637


   Charge-offs

(722)



(2,124)



(1,357)



(504)



(203)


   Recoveries

233



124



198



231



530


Balance at end of period

$

47,093



$

36,382



$

30,867



$

28,276



$

25,549


Net charge-offs (recoveries):










Commercial real estate

$

71



$

6



$

78



$

(17)



$

(435)


Commercial and industrial

317



1,626



935



5



77


Construction and land










Consumer real estate

(19)



100



13



142



(1)


Other consumer

120



268



133



143



32


   Total net charge-offs

$

489



$

2,000



$

1,159



$

273



$

(327)












Excludes loans acquired in the Highlands and LegacyTexas acquisitions, which were initially recorded at fair value.

2 Non-performing TDRs are included in the non-performing assets reported above.

 

LegacyTexas Financial Group, Inc.

Average Balances and Yields/Rates (unaudited)



For the Quarters Ended


December 31,
2015


September 30,
2015


June 30,
 2015


March 31,
 2015


December 31,
2014

Loans:

(Dollars in thousands)

Commercial real estate

$

2,102,708



$

1,969,031



$

1,850,134



$

1,835,205



$

1,216,348


Warehouse Purchase Program

777,927



845,787



920,034



687,496



619,736


Commercial and industrial

1,502,875



1,340,177



1,248,447



1,135,074



730,629


Construction and land

277,597



239,567



214,038



223,815



19,140


Consumer real estate

895,336



855,015



805,573



786,872



518,472


Other consumer

72,981



77,404



83,296



89,123



41,169


Less: deferred fees and allowance for loan loss

(40,987)



(35,690)



(31,991)



(29,098)



(25,280)


Total loans held for investment

5,588,437



5,291,291



5,089,531



4,728,487



3,120,214


Loans held for sale

18,560



17,651



19,414



19,672




Securities

631,916



648,241



620,071



620,490



505,692


Overnight deposits

230,598



160,690



164,499



222,159



106,152


Total interest-earning assets

$

6,469,511



$

6,117,873



$

5,893,515



$

5,590,808



$

3,732,058


Deposits:










Interest-bearing demand

$

748,176



$

736,142



$

701,592



$

702,333



$

455,210


Savings and money market

2,028,249



1,936,090



1,806,857



1,809,191



1,169,133


Time

965,131



902,186



839,604



820,050



513,786


FHLB advances and other borrowings

1,075,948



984,708



1,112,198



882,461



654,396


Total interest-bearing liabilities

$

4,817,504



$

4,559,126



$

4,460,251



$

4,214,035



$

2,792,525












Total assets

$

6,891,210



$

6,532,738



$

6,315,710



$

6,021,795



$

3,910,111


Non-interest-bearing demand deposits

$

1,198,337



$

1,108,928



$

1,024,108



$

975,067



$

473,996


Total deposits

$

4,939,893



$

4,683,346



$

4,372,161



$

4,306,641



$

2,612,125


Total shareholders' equity

$

800,411



$

786,056



$

762,497



$

760,130



$

570,120












Yields/Rates:










Loans:










Commercial real estate

5.13

%


5.31

%


5.20

%


5.30

%


5.42

%

Warehouse Purchase Program

3.33

%


3.35

%


3.36

%


3.36

%


3.51

%

Commercial and industrial

4.49

%


4.48

%


4.75

%


4.90

%


4.38

%

Construction and land

5.41

%


5.42

%


6.25

%


5.92

%


5.63

%

Consumer real estate

4.81

%


4.82

%


5.11

%


4.77

%


4.83

%

Other consumer

5.63

%


5.63

%


5.49

%


5.30

%


6.23

%

Total loans held for investment

4.72

%


4.75

%


4.82

%


4.89

%


4.76

%

Loans held for sale

3.79

%


3.94

%


3.65

%


3.62

%


%

Securities

2.10

%


2.08

%


2.11

%


2.21

%


2.22

%

Overnight deposits

0.36

%


0.34

%


0.34

%


0.28

%


0.24

%

Total interest-earning assets

4.30

%


4.35

%


4.41

%


4.41

%


4.28

%

Deposits:










Interest-bearing demand

0.47

%


0.47

%


0.48

%


0.41

%


0.35

%

Savings and money market

0.19

%


0.19

%


0.17

%


0.22

%


0.32

%

Time

0.71

%


0.71

%


0.70

%


0.68

%


0.64

%

FHLB advances and other borrowings

0.84

%


0.79

%


0.75

%


0.98

%


1.21

%

Total interest-bearing liabilities

0.48

%


0.47

%


0.46

%


0.50

%


0.59

%

Net interest spread

3.82

%


3.88

%


3.95

%


3.91

%


3.69

%

Net interest margin

3.94

%


4.00

%


4.06

%


4.03

%


3.84

%

Cost of deposits (including non-interest-bearing demand)

0.29

%


0.29

%


0.28

%


0.29

%


0.33

%

 

LegacyTexas Financial Group, Inc.

Supplemental Information- Non-GAAP Financial Measures

(unaudited and net of tax, calculated using a 35% estimated tax rate)



At or For the Quarters Ended


December 31,
 2015


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014

Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share:

(Dollars in thousands, except per share amounts)

GAAP net income available to common shareholders 1

$

16,336



$

17,768



$

20,091



$

16,186



$

5,412


Distributed and undistributed earnings to participating securities 1

110



127



160



138



54


GAAP net income

16,446



17,895



20,251



16,324



5,466












Merger and acquisition costs





5



1,004



5,765


One-time (gain) loss on assets

(133)



(130)



(142)



554



(45)


(Gain) loss on sale of available for sale securities

(11)



16





(137)




Core (non-GAAP) net income

$

16,302



$

17,781



$

20,114



$

17,745



$

11,186


Average shares for basic earnings per share

45,939,817



45,862,840



45,760,232



45,824,812



38,051,511


GAAP basic earnings per share

$

0.36



$

0.39



$

0.44



$

0.35



$

0.14


Core (non-GAAP) basic earnings per share

$

0.35



$

0.39



$

0.44



$

0.39



$

0.29


Average shares for diluted earnings per share

46,267,956



46,188,461



46,031,267



46,002,821



38,275,814


GAAP diluted earnings per share

$

0.35



$

0.38



$

0.44



$

0.35



$

0.14


Core (non-GAAP) diluted earnings per share

$

0.35



$

0.38



$

0.44



$

0.39



$

0.29












Calculation of Tangible Book Value per Share:









Total shareholders' equity

$

804,076



$

792,637



$

776,924



$

761,059



$

568,223


Less: Goodwill

(180,776)



(180,632)



(180,632)



(179,258)



(29,650)


Identifiable intangible assets, net

(1,030)



(1,142)



(1,280)



(1,042)



(813)


Total tangible shareholders' equity

$

622,270



$

610,863



$

595,012



$

580,759



$

537,760


Shares outstanding at end of period

47,645,826



47,640,193



47,619,493



47,602,721



40,014,851












Book value per share- GAAP

$

16.88



$

16.64



$

16.32



$

15.99



$

14.20


Tangible book value per share- Non-GAAP

$

13.06



$

12.82



$

12.50



$

12.20



$

13.44












Calculation of Tangible Equity to Tangible Assets:









Total assets

$

7,691,940



$

6,878,843



$

6,669,624



$

6,510,951



$

4,164,114


Less: Goodwill

(180,776)



(180,632)



(180,632)



(179,258)



(29,650)


Identifiable intangible assets, net

(1,030)



(1,142)



(1,280)



(1,042)



(813)


Total tangible assets

$

7,510,134



$

6,697,069



$

6,487,712



$

6,330,651



$

4,133,651












Equity to assets- GAAP

10.45

%


11.52

%


11.65

%


11.69

%


13.65

%

Tangible equity to tangible assets- Non-GAAP

8.29

%


9.12

%


9.17

%


9.17

%


13.01

%




At or For the Quarters Ended


December 31,
 2015


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


(Dollars in thousands)

Calculation of Return on Average Assets and Return on Average Equity Ratios (GAAP and core) (unaudited)

Net income

$

16,446



$

17,895



$

20,251



$

16,324



$

5,466


Core (non-GAAP) net income

16,302



17,781



20,114



17,745



11,186


Average total equity

800,411



786,056



762,497



760,130



570,120


Average total assets

6,891,210



6,532,738



6,315,710



6,021,795



3,910,111


Return on average common shareholders' equity

8.22

%


9.11

%


10.62

%


8.59

%


3.83

%

Core (non-GAAP) return on average common shareholders' equity

8.15



9.05



10.55



9.34



7.85


Return on average assets

0.95



1.10



1.28



1.08



0.56


Core (non-GAAP) return on average assets

0.95



1.09



1.27



1.18



1.14


 


At or For the Years Ended


December 31,

 2015


December 31,

 2014

Reconciliation of Core (non-GAAP) to GAAP Net Income and Earnings per Share:

(Dollars in thousands, except per share amounts)

GAAP net income available to common shareholders 1

$

70,382



$

30,942


Distributed and undistributed earnings to participating securities 1

534



336


GAAP net income

70,916



31,278






Merger and acquisition costs

1,009



7,071


One-time payroll and severance costs



234


One-time (gain) loss on assets

149



319


(Gain) loss on sale of available for sale securities

(132)




Core (non-GAAP) net income

$

71,942



$

38,902


Average shares for basic earnings per share

45,847,284



37,919,065


GAAP basic earnings per share

$

1.54



$

0.82


Core (non-GAAP) basic earnings per share

$

1.57



$

1.03


Average shares for diluted earnings per share

46,125,447



38,162,094


GAAP diluted earnings per share

$

1.53



$

0.81


Core (non-GAAP) diluted earnings per share

$

1.56



$

1.02


1 Unvested share-based awards that contain nonforfeitable rights to dividends (whether paid or unpaid) are participating securities and are included in the computation of GAAP earnings per share pursuant to the two-class method described in ASC 260-10-45-60B.

Logo - http://photos.prnewswire.com/prnh/20150421/200140LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/legacytexas-financial-group-inc-reports-fourth-quarter-and-full-year-2015-earnings-300210009.html

SOURCE LegacyTexas Financial Group, Inc.


Source: PR Newswire (January 26, 2016 - 4:15 PM EST)

News by QuoteMedia
www.quotemedia.com