Entegra Financial Corp.

CIK:0001522327|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Interest and fees on loans	$ 13,444	$ 12,621	$ 39,598	$ 36,981
Interest on tax exempt loans	102	106	314	290
Taxable securities	1,945	1,827	6,014	5,173
Tax-exempt securities	760	695	2,279	1,852
Interest-earning deposits	564	528	1,520	1,309
Other	181	201	559	544
Total interest and dividend income	16,996	15,978	50,284	46,149
Interest expense:
Deposits	3,633	2,331	9,963	5,540
Federal Home Loan Bank advances	1,315	1,091	4,094	2,841
Junior subordinated notes	142	141	423	421
Other borrowings	52	123	277	352
Interest Expense	5,142	3,686	14,757	9,154
Net interest income	11,854	12,292	35,527	36,995
Provision for loan losses		336	246	1,054
Net interest income after provision for loan losses	11,854	11,956	35,281	35,941
Noninterest income:
Servicing (loss) income, net	51	180	126	313
Mortgage banking	475	233	1,079	755
Gain on sale of SBA loans	290	257	387	547
Loss on sale of investments, net				(520)
Equity securities gains (losses)	(30)	191	500	183
Service charges on deposit accounts	406	406	1,205	1,242
Interchange fees, net	305	276	849	795
Bank owned life insurance	189	195	554	589
Legal settlement income			1,750
Other	372	227	878	775
Total noninterest income	2,058	1,965	7,328	4,679
Noninterest expenses:
Compensation and employee benefits	5,802	5,882	17,532	17,151
Net occupancy	1,052	1,128	3,256	3,342
Federal deposit insurance	(3)	191	280	618
Professional and advisory	179	413	763	1,023
Data processing	526	532	1,529	1,607
Marketing and advertising	159	227	594	671
Merger-related expenses	295	96	3,229	564
Net cost of operation of real estate owned	46	59	76	202
Other	861	1,013	2,944	2,925
Total noninterest expenses	8,917	9,541	30,203	28,103
Income before taxes	4,995	4,380	12,406	12,517
Income tax expense (benefit)	998	857	2,430	2,325
Net income	$ 3,997	$ 3,523	$ 9,976	$ 10,192
Earnings per common share:
Earnings per share - basic	$ 0.58	$ 0.51	$ 1.44	$ 1.48
Earnings per share - diluted	$ 0.56	$ 0.50	$ 1.42	$ 1.45
Weighted average common shares outstanding:
Common shares outstanding - Basic	6,923,114	6,891,672	6,920,880	6,889,130
Common shares outstanding - Diluted	7,089,850	7,031,150	7,029,164	7,023,714

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 9,976	$ 10,192
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	944	(255)
Investment amortization, net	2,448	2,672
Equity securities losses (gains)	(500)	(183)
Provision for loan losses	246	1,054
Provision for real estate owned	35	83
Share-based compensation expense	870	772
Deferred tax expense	1,815	1,796
Loss on sales of investments		520
Income on bank owned life insurance, net	(554)	(589)
Mortgage banking income, net	(1,079)	(755)
Gain on sales of SBA loans	(387)	(547)
Gain on sale of fixed assets	(10)
Gain on sale of other investment	(113)
Net realized gain on sale of real estate owned	(50)	(16)
Loans originated for sale	(35,059)	(36,982)
Proceeds from sale of loans originated for sale	31,242	38,159
Net change in operating assets and liabilities:
Accrued interest receivable	280	(753)
Loan servicing rights	317	(15)
Other assets	(3,168)	(3,381)
Postemployment benefits	(100)	(287)
Accrued interest payable	83	423
Other liabilities	1,180	(4,233)
Net cash provided by operating activities	8,416	7,675
Activity for investment securities:
Purchases		(107,204)
Maturities/calls and principal repayments	20,852	32,832
Sales		54,174
Proceeds from sale of Visa Class B restricted shares		427
Net increase in loans	(847)	(62,647)
Proceeds from sale of real estate owned	272	410
Proceeds from settlement of BOLI policies	1,115
Proceeds from sale of fixed assets	100
Purchase of fixed assets	(107)	(3,551)
Purchase of Small Business Investment Company Holdings, at cost	(1,154)	(118)
Proceeds from sale of other investment	122
Purchase of other investments, at cost		(78)
Redemption of other investments, at cost	387	425
Net cash provided by (used in) investing activities	20,740	(85,330)
Cash flows from financing activities:
Net increase in deposits	56,705	92,614
Net increase in escrow deposits	2,157	1,970
Net (decrease) increase in other borrowings	(4,836)	773
Proceeds from FHLB advances	195,000	255,500
Repayment of FHLB advances	(203,000)	(265,500)
Cash received (paid for shares surrendered) upon exercise of stock options	(10)	117
Cash paid for shares surrendered upon vesting of restricted stock	(95)	(21)
Net cash provided by financing activities	45,921	85,453
Increase (decrease) in cash and cash equivalents	75,077	7,798
Cash and cash equivalents, beginning of period	69,119	109,467
Cash and cash equivalents, end of period	144,196	117,265
Cash paid during the year for:
Interest on deposits and other borrowings	14,831	9,460
Income taxes	804	4,070
Noncash investing and financing activities:
Real estate acquired in satisfaction of mortgage loans	1,061	1,502
Loans originated for disposition of real estate owned	209	774
Loan sales/investments to be settled	1,710	2,169
Reclassification for adoption of Accounting Standards Update		$ 617

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 17,662	$ 15,409
Interest-earning deposits	126,534	53,710
Cash and cash equivalents	144,196	69,119
Investments - equity securities	6,947	6,178
Investments - available for sale	349,327	359,738
Other investments, at cost	11,652	12,039
Loans held for sale (includes $5,221 and $2,431 at fair value)	11,142	7,570
Loans receivable,net	1,076,581	1,076,069
Allowance for loan losses	(12,309)	(11,985)
Fixed assets, net	25,430	26,385
Real estate owned	3,088	2,493
Accrued interest receivable	6,163	6,443
Bank owned life insurance	32,461	32,886
Small Business Investment Company Holdings, at cost	4,993	3,839
Net deferred tax asset	2,871	7,551
Loan servicing rights	2,520	2,837
Goodwill	23,903	23,903
Core deposit intangible	3,059	3,577
Other assets	11,999	7,799
Total assets	1,704,023	1,636,441
Liabilities:
Core deposits	905,965	795,261
Retail certificates of deposit	303,601	349,971
Wholesale deposits	70,379	76,008
Federal Home Loan Bank advances	205,500	213,500
Junior subordinated notes	14,433	14,433
Other borrowings	4,463	9,299
Post employment benefits	9,205	9,305
Accrued interest payable	1,730	1,647
Other liabilities	5,771	4,145
Total liabilities	1,521,047	1,473,569
Commitments and contingencies
Shareholders' Equity:
Preferred stock - no par value, 10,000,000 shares authorized; none issued and outstanding
Common stock - no par value, 50,000,000 shares authorized; 6,925,283 and 6,917,703 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
Common stock held by Rabbi Trust, at cost; 17,672 shares at September 30, 2019 and December 31, 2018	(379)	(379)
Additional paid in capital	74,816	74,051
Retained earnings	102,600	92,624
Accumulated other comprehensive loss	5,939	(3,424)
Total shareholders' equity	182,976	162,872
Total liabilities and shareholders' equity	$ 1,704,023	$ 1,636,441