Cadence Bank Announces Third Quarter 2024 Financial Results
In This Article:
HOUSTON and TUPELO, Miss., Oct. 21, 2024 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended September 30, 2024.
Highlights for the third quarter of 2024 included:
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Reported quarterly net income available to common shareholders of $134.1 million, or $0.72 per diluted common share, and adjusted net income from continuing operations available to common shareholders,(1) which excludes non-routine income and expenses,(2) of $135.6 million, or $0.73 per diluted common share, which represents an increase of $0.04 per share, or 5.8%, compared to the second quarter of 2024 adjusted net income from continuing operations available to common shareholders.(1)
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Achieved quarterly adjusted pre-tax pre-provision net revenue from continuing operations (PPNR)(1) of $189.9 million, which is flat compared to the second quarter of 2024 and up $44.7 million from the third quarter of 2023. Year-to-date, adjusted PPNR(1) is $555.0 million, up $80.6 million or 17.0%, from the same period in 2023.
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Period-end loans were flat for the quarter at $33.3 billion as higher levels of payoffs and paydowns offset new origination activity. Year-to-date, net loan growth is $807.0 million or 3.3% annualized.
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Grew period-end total deposits by $985.7 million, or 10.4% on an annualized basis. Customer deposits, which exclude brokered deposits and public funds, increased $1.4 billion including approximately $435.0 million in customer overnight sweep activity. Excluding the sweep activity, customer deposits increased approximately $945.0 million in the quarter, or 11.4% annualized.
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Continued improvement in net interest margin by 4 basis points to 3.31%, benefiting from improvement in average earning asset mix, stabilized deposit costs and higher loan yields.
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Credit metrics reflected 0.26% in annualized net charge-offs, slightly improved from the linked quarter, and a $12.0 million provision for credit losses resulting in a 1.38% allowance for credit losses as a percent of loans.
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Repurchased 323,395 shares of Company common stock during the third quarter at a weighted average price of $28.79 per share; regulatory capital remained strong with Common Equity Tier 1 Capital of 12.3% and Total Capital of 14.5%.
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Tangible book value per common share(1) increased to $21.68 per share at September 30, 2024, up $1.60 per share compared to the second quarter of 2024, while tangible common shareholders' equity to tangible assets(1) increased to 8.28% at September 30, 2024.
"Our third quarter results reflect another good quarter with strong operating performance, highlighted by favorable deposit trends, improvement in our net interest margin, and continued disciplined expense management," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "From a balance sheet standpoint, we were very pleased with our team's continued success in growing deposits across the franchise, while keeping the increase in total cost of deposits to just two basis points. Our loan pipelines continue to be robust, reflecting the strong economies in our footprint; however, elevated payoffs and paydowns resulted in total loans being flat linked quarter. Importantly, our net interest income and net interest margin continued to exhibit growth, and our expenses and credit quality results remained in line with expectations."
Earnings Summary
All adjusted financial results discussed herein are adjusted results from continuing operations.(3)
For the third quarter of 2024, the Company reported net income available to common shareholders of $134.1 million, or $0.72 per diluted common share, compared to $90.2 million, or $0.49 per diluted common share, for the third quarter of 2023 and $135.1 million, or $0.73 per diluted common share, for the second quarter of 2024. Adjusted net income available to common shareholders from continuing operations(1) increased to $135.6 million, or $0.73 per diluted common share, for the third quarter of 2024, compared with $97.6 million, or $0.53 per diluted common share, for the third quarter of 2023 and $127.9 million, or $0.69 per diluted common share, for the second quarter of 2024.
Additionally, the Company reported adjusted PPNR from continuing operations(1) of $189.9 million, or 1.58% of average assets on an annualized basis, for the third quarter of 2024, which is consistent with the second quarter of 2024, and an increase of $44.7 million or 30.7% compared to the same quarter of 2023. These notable increases in financial performance were driven by net interest margin expansion, fee revenue growth, and continued disciplined expense management.
Net Interest Revenue
Net interest revenue increased to $361.5 million for the third quarter of 2024, compared to $329.0 million for the third quarter of 2023 and $356.3 million for the second quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.31% for the third quarter of 2024, compared with 2.98% for the third quarter of 2023 and 3.27% for the second quarter of 2024.
Net interest revenue increased $5.1 million, or 1.4%, compared to the second quarter of 2024 as the Company continues to benefit from improved average earning asset mix, upward repricing in the loan portfolio and slowed pressure on deposit costs. Purchase accounting accretion revenue was $3.0 million for both the third quarter of 2024 and the second quarter of 2024, respectively. Average earning assets declined slightly to $43.5 billion, as growth in average loans of $334.3 million was offset by lower excess cash.
Yield on net loans, loans held for sale and leases, excluding accretion, was 6.61% for the third quarter of 2024, up 5 basis points from 6.56% for the second quarter of 2024. Investment securities yielded 3.04% in the third quarter of 2024, down 15 basis points from 3.19% in the second quarter of 2024 due to both increased fair values of the portfolio as well as maturing higher yielding securities in the quarter. The yield on total interest earning assets increased to 5.92% for the third quarter of 2024, up 2 basis points from 5.90% for the second quarter of 2024.
The average cost of total deposits was relatively stable at 2.55% for the third quarter of 2024, compared to 2.53% for the second quarter of 2024. While there was some mix shift between deposit product types, interest bearing demand and money market as well as savings costs were flat linked quarter and time deposit costs declined slightly. Total interest-bearing liabilities cost was 3.47% for the third quarter of 2024 compared to 3.45% for the second quarter of 2024.
Balance Sheet Activity
Loans and leases, net of unearned income, were flat at $33.3 billion compared to the second quarter of 2024. A decline in non-real estate C&I loans was offset by growth in owner occupied C&I, income producing CRE and residential mortgage loans.
Total deposits were $38.8 billion as of September 30, 2024, an increase of $985.7 million from the prior quarter. The third quarter's increase included a decline of $568.0 million in public funds to $3.7 billion, and a $174.0 million increase in brokered deposits to $626.0 million at September 30, 2024. Core customer deposits, which excludes brokered deposits and public funds, reflected organic growth of approximately $1.4 billion compared to June 30, 2024. However, approximately $435 million of this increase in non-interest bearing deposits was temporary in nature at quarter end driven by timing of overnight customer sweep activity.
The September 30, 2024 loan to deposit ratio was 85.7% and securities to total assets was 15.9%, reflecting continued strong liquidity. Noninterest bearing deposits increased to 23.8% of total deposits at the end of the third quarter of 2024 from 22.7% at June 30, 2024. Excluding the aforementioned approximately $435 million in overnight customer sweep activity, noninterest bearing deposits to total deposits were flat compared to the prior quarter. Stabilization in this mix has positively impacted both the net interest margin and cost of deposits trends.
Total investment securities declined $0.1 billion during the third quarter of 2024 to $7.8 billion at September 30, 2024. Cash, due from balances and deposits at the Federal Reserve increased $1.4 billion to $4.0 billion at September 30, 2024. However, from an average balance perspective, cash, due from balances and deposits at the Federal Reserve declined $0.6 billion linked quarter as the Company continues to use excess liquidity to fund loan growth and reduce reliance on higher cost funding.
In June 2024, the Company called $138.9 million in fixed-to-floating subordinated debt at par. This debt was yielding 5.65%; however, was set to reprice to a weighted-average rate of SOFR+3.76% after the June call date. In November 2024, the Company anticipates calling $215.2 million in fixed-to-floating subordinated debt at par. This debt is currently yielding 4.125% and is set to reprice at SOFR+2.73% after the November call date.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Net charge-offs for the third quarter of 2024 were $22.2 million, or 0.26% of average net loans and leases on an annualized basis, compared with net charge-offs of $34.2 million, or 0.42% of average net loans and leases on an annualized basis, for the third quarter of 2023 and net charge-offs of $22.6 million, or 0.28% of average net loans and leases on an annualized basis, for the second quarter of 2024. Net charge-offs for the third quarter of 2024 were primarily in the C&I portfolio and a significant portion of the credits were specifically reserved for in prior quarters. The provision for credit losses for the third quarter of 2024 was $12.0 million, compared with $17.0 million for the third quarter of 2023 and $22.0 million for the second quarter of 2024. The allowance for credit losses of $460.9 million at September 30, 2024 declined slightly to 1.38% of total loans and leases compared to 1.41% of total loans and leases at June 30, 2024.
Total nonperforming assets as a percent of total assets were 0.57% at September 30, 2024 compared to 0.32% at September 30, 2023 and 0.46% at June 30, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.82% at September 30, 2024, compared to 0.46% at September 30, 2023 and 0.65% at June 30, 2024. The linked quarter increase in nonperforming loans represents migration of a limited number of credits that were previously identified as criticized. Other real estate owned and other repossessed assets was $5.4 million at September 30, 2024 compared to the September 30, 2023 balance of $2.9 million and the June 30, 2024 balance of $4.8 million. Criticized loans represented 2.64% of loans at September 30, 2024 compared to 2.71% at September 30, 2023 and 2.51% at June 30, 2024, while classified loans were 2.09% at September 30, 2024 compared to 2.10% at September 30, 2023 and 2.09% at June 30, 2024. Criticized and classified loan totals continue to remain below the most recent peak levels at March 31, 2023.
Noninterest Revenue
Noninterest revenue was $85.9 million for the third quarter of 2024 compared with $74.0 million for the third quarter of 2023 and $100.7 million for the second quarter of 2024. Adjusted noninterest revenue(1) for the third quarter of 2024 was $88.8 million, compared with $80.6 million for the third quarter of 2023 and $85.7 million for the second quarter of 2024. Adjusted noninterest revenue(1) for the third quarter of 2024 excludes $2.9 million in securities losses while adjusted noninterest revenue(1) for the third quarter of 2023 excludes $6.7 million of facility and signage write-downs associated with branch closures and adjusted noninterest revenue(1) for the second quarter of 2024 excludes a gain of $15.0 million associated with the sale of businesses, primarily related to the sale of Cadence Business Solutions, LLC during the second quarter of 2024 (see Key Transactions below).
Wealth management revenue was $24.1 million for the third quarter of 2024, compared with $24.0 million for the second quarter of 2024 as seasonal declines in trust revenue were offset by growth in advisory and brokerage fees. Credit card, debit card and merchant fee revenue was $12.6 million for the third quarter of 2024, relatively consistent with $12.8 million for the second quarter of 2024. Deposit service charge revenue was $18.8 million for the third quarter of 2024, which represents an increase compared to $17.7 million for the second quarter of 2024 including an increase in account analysis revenue.
Mortgage production and servicing revenue totaled $8.2 million for the third quarter of 2024, compared with $9.9 million for the second quarter of 2024 due to slower originations. Mortgage origination volume for the third quarter of 2024 was $732.3 million, compared with $758.4 million for the second quarter of 2024. The net MSR valuation adjustment, net of the related hedge, was a negative $7.0 million for the third quarter of 2024, compared with a negative $3.7 million for the second quarter of 2024.
Other noninterest revenue was $32.1 million for the third quarter of 2024, compared to $40.1 million for the second quarter of 2024. Other noninterest revenue for the second quarter of 2024 included the $15.0 million gain on sale of businesses. Excluding this gain, other noninterest revenue increased $7.1 million linked quarter including increases in credit related fees, SBA income and other miscellaneous revenue.
Noninterest Expense
Noninterest expense for the third quarter of 2024 was $259.4 million, compared with $274.4 million for the third quarter of 2023 and $256.7 million for the second quarter of 2024. Adjusted noninterest expense(1) for the third quarter of 2024 was $260.4 million, compared with $264.2 million for the third quarter of 2023 and $251.1 million for the second quarter of 2024. Adjusted noninterest expense for the third quarter of 2024 excludes a benefit of $1.2 million associated with an adjustment to the estimated FDIC deposit insurance special assessment. The adjusted efficiency ratio(1) was 57.7% for the third quarter of 2024, compared to 56.7% for the second quarter of 2024 and 64.4% for the third quarter of 2023.
The $9.2 million, or 3.7%, linked quarter increases in adjusted noninterest expense(1) was driven by increases in salaries and employee benefits expense as well as other noninterest expense. Salaries and employee benefits expense increased $4.2 million compared to the second quarter of 2024 primarily as a result of the Company's annual merit increases being effective on July 1, 2024. Other noninterest expense increased $7.6 million compared to the second quarter of 2024. This increase was driven partially by an increase of $2.9 million in legal expense as second quarter of 2024 included higher recoveries of legal costs. The remainder of the increase was the result of small increases in various miscellaneous expenses combined with second quarter 2024 results including benefits associated with certain items including operational loss recoveries.
Capital Management
Total shareholders' equity was $5.6 billion at September 30, 2024 compared with $4.4 billion at September 30, 2023 and $5.3 billion at June 30, 2024. Estimated regulatory capital ratios at September 30, 2024 included Common Equity Tier 1 capital of 12.3%, Tier 1 capital of 12.7%, Total risk-based capital of 14.5%, and Tier 1 leverage capital of 10.1%. During the third quarter of 2024, the Company repurchased 323,395 shares of Company common stock at an average price of $28.79 per share. The company has 8.8 million shares remaining on its current share repurchase authorization, which expires on December 31, 2024. Outstanding common shares were 182.3 million as of September 30, 2024.
Summary
Rollins concluded, "Our results for the third quarter as well as year-to-date 2024 reflect steady improvement in our financial performance through disciplined balance sheet growth and strong core deposit retention, expansion in our net interest margin, stable credit quality, and enhanced operating efficiency. As always, it is rewarding to see all of our teammates' hard work and focus on serving our customers and communities continue to produce positive results."
Key Transactions
Effective May 17, 2024, the Company completed the sale of Cadence Business Solutions, its payroll processing business unit, resulting in a net gain on sale of approximately $12 million. The impact on both revenues and expenses is not material. The payroll processing unit had previously been part of Cadence Insurance, Inc., prior to its sale in November 2023.
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million. The Transaction resulted in net capital creation of approximately $625 million, including a net gain on sale of approximately $525 million. The gain along with Cadence Insurance's historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations.
Conference Call and Webcast
The Company will conduct a conference call to discuss its third quarter 2024 financial results on October 22, 2024, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing https://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.
About Cadence Bank
Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the South and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.
| (1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 22 of this news release. |
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| (2) See Table 14 for detail on non-routine income and expenses. |
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| (3) Given the sale of Cadence Insurance, Inc. ("Cadence Insurance") in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented. |
Forward-Looking Statements
Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale on the Company's financial condition and future net income and earnings per share, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, 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 prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
| Table 1 Selected Financial Data (Unaudited)
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| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Earnings Summary: | | | | | | | | |
| Interest revenue | $ 647,713 | $ 642,210 | $ 637,113 | $ 615,187 | $ 595,459 | | $ 1,927,036 | $ 1,694,980 |
| Interest expense | 286,255 | 285,892 | 283,205 | 280,582 | 266,499 | | 855,352 | 678,229 |
| Net interest revenue | 361,458 | 356,318 | 353,908 | 334,605 | 328,960 | | 1,071,684 | 1,016,751 |
| Provision for credit losses | 12,000 | 22,000 | 22,000 | 38,000 | 17,000 | | 56,000 | 42,000 |
| Net interest revenue, after provision for credit losses | 349,458 | 334,318 | 331,908 | 296,605 | 311,960 | | 1,015,684 | 974,751 |
| Noninterest revenue | 85,901 | 100,658 | 83,786 | (311,460) | 73,989 | | 270,345 | 195,116 |
| Noninterest expense | 259,438 | 256,697 | 263,207 | 329,367 | 274,442 | | 779,343 | 826,555 |
| Income (loss) from continuing operations before income taxes | 175,921 | 178,279 | 152,487 | (344,222) | 111,507 | | 506,686 | 343,312 |
| Income tax expense (benefit) | 39,482 | 40,807 | 35,509 | (80,485) | 24,355 | | 115,797 | 75,891 |
| Income (loss) from continuing operations | 136,439 | 137,472 | 116,978 | (263,737) | 87,152 | | 390,889 | 267,421 |
| Income from discontinued operations, net of taxes | — | — | — | 522,801 | 5,431 | | — | 15,819 |
| Net income | 136,439 | 137,472 | 116,978 | 259,064 | 92,583 | | 390,889 | 283,240 |
| Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | | 7,116 | 7,116 |
| Net income available to common shareholders | $ 134,067 | $ 135,100 | $ 114,606 | $ 256,692 | $ 90,211 | | $ 383,773 | $ 276,124 |
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| Balance Sheet - Period End Balances | | | | | | | | |
| Total assets | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | | $ 49,204,933 | $ 48,523,010 |
| Total earning assets | 44,834,897 | 43,525,688 | 43,968,692 | 44,192,887 | 43,727,058 | | 44,834,897 | 43,727,058 |
| Available for sale securities | 7,841,685 | 7,921,422 | 8,306,589 | 8,075,476 | 9,643,231 | | 7,841,685 | 9,643,231 |
| Loans and leases, net of unearned income | 33,303,972 | 33,312,773 | 32,882,616 | 32,497,022 | 32,520,593 | | 33,303,972 | 32,520,593 |
| Allowance for credit losses (ACL) | 460,859 | 470,022 | 472,575 | 468,034 | 446,859 | | 460,859 | 446,859 |
| Net book value of acquired loans | 5,521,000 | 5,543,419 | 6,011,007 | 6,353,344 | 6,895,487 | | 5,521,000 | 6,895,487 |
| Unamortized net discount on acquired loans | 17,988 | 20,874 | 23,715 | 26,928 | 30,761 | | 17,988 | 30,761 |
| Total deposits | 38,844,360 | 37,858,659 | 38,120,226 | 38,497,137 | 38,344,885 | | 38,844,360 | 38,344,885 |
| Total deposits and repurchase agreements | 38,861,324 | 37,913,693 | 38,214,616 | 38,948,653 | 39,207,474 | | 38,861,324 | 39,207,474 |
| Other short-term borrowings | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,223 | | 3,500,000 | 3,500,223 |
| Subordinated and long-term debt | 225,823 | 269,353 | 430,123 | 438,460 | 449,323 | | 225,823 | 449,323 |
| Total shareholders' equity | 5,572,863 | 5,287,758 | 5,189,932 | 5,167,843 | 4,395,257 | | 5,572,863 | 4,395,257 |
| Total shareholders' equity, excluding AOCI (1) | 6,163,205 | 6,070,220 | 5,981,265 | 5,929,672 | 5,705,178 | | 6,163,205 | 5,705,178 |
| Common shareholders' equity | 5,405,870 | 5,120,765 | 5,022,939 | 5,000,850 | 4,228,264 | | 5,405,870 | 4,228,264 |
| Common shareholders' equity, excluding AOCI (1) | $ 5,996,212 | $ 5,903,227 | $ 5,814,272 | $ 5,762,679 | $ 5,538,185 | | $ 5,996,212 | $ 5,538,185 |
| | | | | | | | | |
| Balance Sheet - Average Balances | | | | | | | | |
| Total assets | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 | | $ 48,211,586 | $ 48,791,497 |
| Total earning assets | 43,540,045 | 43,851,822 | 44,226,077 | 43,754,664 | 44,003,639 | | 43,871,434 | 44,017,508 |
| Available for sale securities | 7,915,636 | 8,033,552 | 8,269,708 | 9,300,714 | 10,004,441 | | 8,072,391 | 10,666,618 |
| Loans and leases, net of unearned income | 33,279,819 | 32,945,526 | 32,737,574 | 32,529,030 | 32,311,572 | | 32,988,706 | 31,706,637 |
| Total deposits | 37,634,453 | 38,100,087 | 38,421,272 | 38,215,379 | 38,468,912 | | 38,050,413 | 38,767,657 |
| Total deposits and repurchase agreements | 37,666,828 | 38,165,908 | 38,630,620 | 38,968,397 | 39,295,967 | | 38,152,672 | 39,544,419 |
| Other short-term borrowings | 3,512,218 | 3,500,000 | 3,500,000 | 3,503,320 | 3,510,942 | | 3,504,102 | 3,460,386 |
| Subordinated and long-term debt | 265,790 | 404,231 | 434,579 | 443,251 | 449,568 | | 367,826 | 455,810 |
| Total shareholders' equity | 5,420,826 | 5,207,254 | 5,194,048 | 4,507,343 | 4,505,162 | | 5,274,579 | 4,480,723 |
| Common shareholders' equity | $ 5,253,833 | $ 5,040,261 | $ 5,027,055 | $ 4,340,350 | $ 4,338,169 | | $ 5,107,586 | $ 4,313,730 |
| | | | | | | | | |
| Nonperforming Assets: | | | | | | | | |
| Nonperforming loans and leases (NPL) (2) (3) | 272,954 | 216,746 | 241,007 | 216,141 | 150,038 | | 272,954 | 150,038 |
| Other real estate owned and other assets | 5,354 | 4,793 | 5,280 | 6,246 | 2,927 | | 5,354 | 2,927 |
| Nonperforming assets (NPA) | $ 278,308 | $ 221,539 | $ 246,287 | $ 222,387 | $ 152,965 | | $ 278,308 | $ 152,965 |
| (1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
| (2) | At September 30, 2024, $81.6 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information. |
| (3) | At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million. |
| Table 2 Selected Financial Ratios | ||||||||
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Financial Ratios and Other Data: | | | | | | | | |
| Return on average assets from continuing operations (2) | 1.14 % | 1.15 % | 0.97 % | (2.16) % | 0.71 % | | 1.08 % | 0.73 % |
| Return on average assets (2) | 1.14 | 1.15 | 0.97 | 2.12 | 0.75 | | 1.08 | 0.78 |
| Adjusted return on average assets from continuing operations (1)(2) | 1.15 | 1.09 | 0.97 | 0.62 | 0.82 | | 1.07 | 0.92 |
| Return on average common shareholders' equity from continuing operations (2) | 10.15 | 10.78 | 9.17 | (24.32) | 7.75 | | 10.04 | 8.07 |
| Return on average common shareholders' equity (2) | 10.15 | 10.78 | 9.17 | 23.46 | 8.25 | | 10.04 | 8.56 |
| Adjusted return on average common shareholders' equity from continuing operations (1)(2) | 10.27 | 10.21 | 9.15 | 6.65 | 8.93 | | 9.88 | 10.18 |
| Return on average tangible common equity from continuing operations (1)(2) | 14.04 | 15.18 | 12.94 | (36.79) | 11.75 | | 14.06 | 12.28 |
| Return on average tangible common equity (1)(2) | 14.04 | 15.18 | ...12.94 | 35.49 | 12.50 | | 14.06 | 13.03 |
| Adjusted return on average tangible common equity from continuing operations (1)(2) | 14.21 | 14.37 | 12.92 | 10.06 | 13.53 | | 13.84 | 15.50 |
| Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2) | 1.56 | 1.67 | 1.44 | (2.51) | 1.05 | | 1.56 | 1.06 |
| Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2) | 1.58 | 1.59 | 1.44 | 1.13 | 1.18 | | 1.54 | 1.30 |
| Net interest margin-fully taxable equivalent | 3.31 | 3.27 | 3.22 | 3.04 | 2.98 | | 3.27 | 3.10 |
| Net interest rate spread-fully taxable equivalent | 2.45 | 2.45 | 2.40 | 2.25 | 2.21 | | 2.43 | 2.37 |
| Efficiency ratio fully tax equivalent (1) | 57.90 | 56.09 | 60.05 | NM | 67.93 | | 57.99 | 68.03 |
| Adjusted efficiency ratio fully tax equivalent (1) | 57.73 | 56.73 | 60.12 | 66.01 | 64.35 | | 58.18 | 62.48 |
| Loan/deposit ratio | 85.74 % | 87.99 % | 86.26 % | 84.41 % | 84.81 % | | 85.74 % | 84.81 % |
| Full time equivalent employees | 5,327 | 5,290 | 5,322 | 5,333 | 6,160 | | 5,327 | 6,160 |
| | | | | | | | | |
| Credit Quality Ratios: | | | | | | | | |
| Net charge-offs to average loans and leases (2) | 0.26 % | 0.28 % | 0.24 % | 0.29 % | 0.42 % | | 0.26 % | 0.20 % |
| Provision for credit losses to average loans and leases (2) | 0.14 | 0.27 | 0.27 | 0.46 | 0.21 | | 0.23 | 0.18 |
| ACL to loans and leases, net | 1.38 | 1.41 | 1.44 | 1.44 | 1.37 | | 1.38 | 1.37 |
| ACL to NPL | 168.84 | 216.85 | 196.08 | 216.54 | 297.83 | | 168.84 | 297.83 |
| NPL to loans and leases, net | 0.82 | 0.65 | 0.73 | 0.67 | 0.46 | | 0.82 | 0.46 |
| NPA to total assets | 0.57 | 0.46 | 0.51 | 0.45 | 0.32 | | 0.57 | 0.32 |
| | | | | | | | | |
| Equity Ratios: | | | | | | | | |
| Total shareholders' equity to total assets | 11.33 % | 11.02 % | 10.74 % | 10.56 % | 9.06 % | | 11.33 % | 9.06 % |
| Total common shareholders' equity to total assets | 10.99 | 10.67 | 10.40 | 10.22 | 8.71 | | 10.99 | 8.71 |
| Tangible common shareholders' equity to tangible assets (1) | 8.28 | 7.87 | 7.60 | 7.44 | 5.86 | | 8.28 | 5.86 |
| Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1) | 9.40 | 9.40 | 9.13 | 8.90 | 8.41 | | 9.40 | 8.41 |
| | | | | | | | | |
| Capital Adequacy (3): | | | | | | | | |
| Common Equity Tier 1 capital | 12.3 % | 11.9 % | 11.7 % | 11.6 % | 10.3 % | | 12.3 % | 10.3 % |
| Tier 1 capital | 12.7 | 12.3 | 12.2 | 12.1 | 10.8 | | 12.7 | 10.8 |
| Total capital | 14.5 | 14.2 | 14.5 | 14.3 | 12.9 | | 14.5 | 12.9 |
| Tier 1 leverage capital | 10.1 | 9.7 | 9.5 | 9.3 | 8.6 | | 10.1 | 8.6 |
| |
| (1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
| (2) Annualized. |
| (3) Current quarter regulatory capital ratios are estimated. |
| NM - Not meaningful |
| Table 3 Selected Financial Information
| ||||||||
| | Quarter Ended | | Year-to-date | |||||
| | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Common Share Data: | | | | | | | | |
| Diluted earnings (losses) per share from continuing operations | $ 0.72 | $ 0.73 | $ 0.62 | $ (1.46) | $ 0.46 | | $ 2.07 | $ 1.41 |
| Adjusted earnings per share from continuing operations (1) | 0.73 | 0.69 | 0.62 | 0.40 | 0.53 | | 2.04 | 1.78 |
| Diluted earnings per share | 0.72 | 0.73 | 0.62 | 1.41 | 0.49 | | 2.07 | 1.50 |
| Cash dividends per share | 0.250 | 0.250 | 0.250 | 0.235 | 0.235 | | 0.750 | 0.705 |
| Book value per share | 29.65 | 28.07 | 27.50 | 27.35 | 23.15 | | 29.65 | 23.15 |
| Tangible book value per share (1) | 21.68 | 20.08 | 19.48 | 19.32 | 15.09 | | 21.68 | 15.09 |
| Market value per share (last) | 31.28 | 28.28 | 29.00 | 29.59 | 21.22 | | 31.28 | 21.22 |
| Market value per share (high) | 34.13 | 29.95 | 30.03 | 31.45 | 25.87 | | 34.13 | 28.18 |
| Market value per share (low) | 27.46 | 26.16 | 24.99 | 19.67 | 19.00 | | 24.99 | 16.95 |
| Market value per share (average) | 30.96 | 28.14 | 27.80 | 24.40 | 22.56 | | 28.98 | 22.41 |
| Dividend payout ratio from continuing operations | 34.72 % | 34.25 % | 40.48 % | (16.13) % | 51.09 % | | 36.23 % | 50.00 % |
| Adjusted dividend payout ratio from continuing operations (1) | 34.25 % | 36.23 % | 40.32 % | 58.75 % | 44.34 % | | 36.76 % | 39.61 % |
| Total shares outstanding | 182,315,142 | 182,430,427 | 182,681,325 | 182,871,775 | 182,611,075 | | 182,315,142 | 182,611,075 |
| Average shares outstanding - diluted | 185,496,110 | 185,260,963 | 185,574,130 | 182,688,190 | 184,645,004 | | 185,443,201 | 184,062,368 |
| | | | | | | | | |
| Yield/Rate: | | | | | | | | |
| (Taxable equivalent basis) | | | | | | | | |
| Loans, loans held for sale, and leases | 6.64 % | 6.59 % | 6.50 % | 6.48 % | 6.39 % | | 6.58 % | 6.22 % |
| Loans, loans held for sale, and leases excluding net accretion on | 6.61 | 6.56 | 6.46 | 6.43 | 6.31 | | 6.54 | 6.12 |
| Available for sale securities: | | | | | | | | |
| Taxable | 3.03 | 3.18 | 3.11 | 2.45 | 2.07 | | 3.11 | 1.98 |
| Tax-exempt | 3.97 | 4.12 | 4.25 | 3.78 | 3.23 | | 4.11 | 3.22 |
| Other investments | 5.37 | 5.45 | 5.48 | 5.41 | 5.36 | | 5.44 | 5.02 |
| Total interest earning assets and revenue | 5.92 | 5.90 | 5.80 | 5.59 | 5.38 | | 5.87 | 5.16 |
| Deposits | 2.55 | 2.53 | 2.45 | 2.32 | 2.14 | | 2.51 | 1.76 |
| Interest bearing demand and money market | 3.13 | 3.13 | 3.11 | 3.02 | 2.79 | | 3.13 | 2.43 |
| Savings | 0.57 | 0.57 | 0.57 | 0.56 | 0.56 | | 0.57 | 0.47 |
| Time | 4.50 | 4.53 | 4.42 | 4.22 | 3.98 | | 4.48 | 3.48 |
| Total interest bearing deposits | 3.30 | 3.28 | 3.21 | 3.10 | 2.88 | | 3.26 | 2.46 |
| Fed funds purchased, securities sold under agreement to repurchase | 5.10 | 4.47 | 4.86 | 4.33 | 4.27 | | 4.81 | 3.99 |
| Short-term FHLB borrowings | — | — | — | — | 3.54 | | — | 4.91 |
| Short-term BTFP borrowings | 4.77 | 4.77 | 4.84 | 5.04 | 5.15 | | 4.79 | 5.15 |
| Total interest bearing deposits and short-term borrowings | 3.46 | 3.44 | 3.39 | 3.33 | 3.16 | | 3.43 | 2.77 |
| Subordinated and long-term borrowings | 4.30 | 4.41 | 4.35 | 4.18 | 4.22 | | 4.36 | 4.24 |
| Total interest bearing liabilities | 3.47 | 3.45 | 3.40 | 3.34 | 3.17 | | 3.44 | 2.79 |
| Interest bearing liabilities to interest earning assets | 75.40 % | 75.97 % | 75.73 % | 76.08 % | 75.74 % | | 75.70 % | 73.88 % |
| Net interest income tax equivalent adjustment (in thousands) | $ 694 | $ 644 | $ 636 | $ 987 | $ 1,081 | | $ 1,974 | $ 3,197 |
| |
| (1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
| Table 4 Consolidated Balance Sheets (Unaudited)
| |||||
| | As of | ||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| ASSETS | | | | | |
| Cash and due from banks | $ 504,827 | $ 516,715 | $ 427,543 | $ 798,177 | $ 594,787 |
| Interest bearing deposits with other banks and Federal funds sold | 3,483,299 | 2,093,820 | 2,609,931 | 3,434,088 | 1,400,858 |
| Available for sale securities, at fair value | 7,841,685 | 7,921,422 | 8,306,589 | 8,075,476 | 9,643,231 |
| Loans and leases, net of unearned income | 33,303,972 | 33,312,773 | 32,882,616 | 32,497,022 | 32,520,593 |
| Allowance for credit losses | 460,859 | 470,022 | 472,575 | 468,034 | 446,859 |
| Net loans and leases | 32,843,113 | 32,842,751 | 32,410,041 | 32,028,988 | 32,073,734 |
| Loans held for sale, at fair value | 205,941 | 197,673 | 169,556 | 186,301 | 162,376 |
| Premises and equipment, net | 797,556 | 808,705 | 822,666 | 802,133 | 789,698 |
| Goodwill | 1,366,923 | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 |
| Other intangible assets, net | 87,094 | 91,027 | 96,126 | 100,191 | 104,596 |
| Bank-owned life insurance | 652,057 | 648,970 | 645,167 | 642,840 | 639,073 |
| Other assets | 1,422,438 | 1,496,072 | 1,458,459 | 1,498,531 | 1,590,769 |
| Assets of discontinued operations | — | — | — | — | 156,103 |
| Total Assets | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 |
| LIABILITIES | | | | | |
| Deposits: | | | | | |
| Demand: Noninterest bearing | $ 9,242,693 | $ 8,586,265 | $ 8,820,468 | $ 9,232,068 | $ 9,657,198 |
| Interest bearing | 18,125,553 | 18,514,015 | 18,945,982 | 19,276,596 | 18,334,551 |
| Savings | 2,560,803 | 2,613,950 | 2,694,777 | 2,720,913 | 2,837,348 |
| Time deposits | 8,915,311 | 8,144,429 | 7,658,999 | 7,267,560 | 7,515,788 |
| Total deposits | 38,844,360 | 37,858,659 | 38,120,226 | 38,497,137 | 38,344,885 |
| Securities sold under agreement to repurchase | 16,964 | 55,034 | 94,390 | 451,516 | 862,589 |
| Other short-term borrowings | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,223 |
| Subordinated and long-term debt | 225,823 | 269,353 | 430,123 | 438,460 | 449,323 |
| Other liabilities | 1,044,923 | 1,013,274 | 979,192 | 879,554 | 876,195 |
| Liabilities of discontinued operations | — | — | — | — | 94,538 |
| Total Liabilities | 43,632,070 | 42,696,320 | 43,123,931 | 43,766,667 | 44,127,753 |
| SHAREHOLDERS' EQUITY | | | | | |
| Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
| Common stock | 455,788 | 456,076 | 456,703 | 457,179 | 456,528 |
| Capital surplus | 2,729,440 | 2,724,656 | 2,724,587 | 2,743,066 | 2,733,003 |
| Accumulated other comprehensive loss | (590,342) | (782,462) | (791,333) | (761,829) | (1,309,921) |
| Retained earnings | 2,810,984 | 2,722,495 | 2,632,982 | 2,562,434 | 2,348,654 |
| Total Shareholders' Equity | 5,572,863 | 5,287,758 | 5,189,932 | 5,167,843 | 4,395,257 |
| Total Liabilities & Shareholders' Equity | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 |
| Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited)
| |||||
| | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| ASSETS | | | | | |
| Cash and due from banks | $ 435,569 | $ 456,938 | $ 557,009 | $ 443,504 | $ 362,479 |
| Interest bearing deposits with other banks and Federal funds sold | 2,210,277 | 2,758,385 | 3,146,439 | 1,811,686 | 1,571,973 |
| Available for sale securities, at fair value | 7,915,636 | 8,033,552 | 8,269,708 | 9,300,714 | 10,004,441 |
| Loans and leases, net of unearned income | 33,279,819 | 32,945,526 | 32,737,574 | 32,529,030 | 32,311,572 |
| Allowance for credit losses | 469,919 | 475,181 | 473,849 | 447,879 | 459,698 |
| Net loans and leases | 32,809,900 | 32,470,345 | 32,263,725 | 32,081,151 | 31,851,874 |
| Loans held for sale, at fair value | 134,313 | 114,359 | 72,356 | 113,234 | 115,653 |
| Premises and equipment, net | 807,353 | 815,920 | 808,473 | 795,164 | 811,095 |
| Goodwill | 1,366,923 | 1,367,358 | 1,367,785 | 1,367,916 | 1,367,785 |
| Other intangible assets, net | 89,262 | 93,743 | 98,350 | 102,765 | 107,032 |
| Bank-owned life insurance | 650,307 | 646,124 | 643,189 | 640,439 | 636,335 |
| Other assets | 1,384,437 | 1,435,995 | 1,415,506 | 1,787,603 | 1,826,471 |
| Total Assets | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 |
| LIABILITIES | | | | | |
| Deposits: | | | | | |
| Demand: Noninterest bearing | $ 8,616,534 | $ 8,757,029 | $ 9,072,619 | $ 9,625,912 | $ 9,924,554 |
| Interest bearing | 18,043,686 | 18,770,093 | 19,303,845 | 18,292,826 | 17,970,463 |
| Savings | 2,584,761 | 2,652,019 | 2,696,452 | 2,758,977 | 2,913,027 |
| Time deposits | 8,389,472 | 7,920,946 | 7,348,356 | 7,537,664 | 7,660,868 |
| Total deposits | 37,634,453 | 38,100,087 | 38,421,272 | 38,215,379 | 38,468,912 |
| Securities sold under agreement to repurchase | 32,375 | 65,821 | 209,348 | 753,018 | 827,055 |
| Other short-term borrowings | 3,512,218 | 3,500,000 | 3,500,000 | 3,503,320 | 3,510,942 |
| Subordinated and long-term debt | 265,790 | 404,231 | 434,579 | 443,251 | 449,568 |
| Other liabilities | 938,315 | 915,326 | 883,293 | 1,021,865 | 893,499 |
| Total Liabilities | 42,383,151 | 42,985,465 | 43,448,492 | 43,936,833 | 44,149,976 |
| SHAREHOLDERS' EQUITY | | | | | |
| Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
| Common stock | 455,954 | 456,618 | 456,437 | 456,636 | 456,557 |
| Capital surplus | 2,725,581 | 2,724,838 | 2,733,902 | 2,733,985 | 2,726,686 |
| Accumulated other comprehensive loss | (703,619) | (838,710) | (777,940) | (1,279,235) | (1,175,077) |
| Retained earnings | 2,775,917 | 2,697,515 | 2,614,656 | 2,428,964 | 2,330,003 |
| Total Shareholders' Equity | 5,420,826 | 5,207,254 | 5,194,048 | 4,507,343 | 4,505,162 |
| Total Liabilities & Shareholders' Equity | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 |
| Table 6 Consolidated Statements of Income (Unaudited)
| ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (Dollars in thousands, except per share data) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| INTEREST REVENUE: | | | | | | | | |
| Loans and leases | $ 555,862 | $ 539,685 | $ 528,940 | $ 531,340 | $ 520,126 | | $ 1,624,487 | $ 1,473,472 |
| Available for sale securities: | | | | | | | | |
| Taxable | 59,732 | 62,852 | 63,405 | 55,801 | 50,277 | | 185,989 | 152,320 |
| Tax-exempt | 638 | 638 | 687 | 1,927 | 2,375 | | 1,963 | 7,279 |
| Loans held for sale | 1,630 | 1,652 | 1,184 | 1,418 | 1,468 | | 4,467 | 3,033 |
| Short-term investments | 29,851 | 37,383 | 42,897 | 24,701 | 21,213 | | 110,130 | 58,876 |
| Total interest revenue | 647,713 | 642,210 | 637,113 | 615,187 | 595,459 | | 1,927,036 | 1,694,980 |
| INTEREST EXPENSE: | | | | | | | | |
| Interest bearing demand deposits and money market accounts | 142,179 | 146,279 | 149,403 | 139,144 | 126,296 | | 437,861 | 333,578 |
| Savings | 3,695 | 3,743 | 3,801 | 3,918 | 4,108 | | 11,238 | 11,037 |
| Time deposits | 94,944 | 89,173 | 80,670 | 80,143 | 76,867 | | 264,786 | 166,333 |
| Federal funds purchased and securities sold under agreement to repurchase | 561 | 724 | 2,523 | 8,254 | 9,004 | | 3,808 | 24,327 |
| Short-term debt | 42,003 | 41,544 | 42,109 | 44,451 | 45,438 | | 125,656 | 128,490 |
| Subordinated and long-term debt | 2,873 | 4,429 | 4,699 | 4,672 | 4,786 | | 12,003 | 14,464 |
| Total interest expense | 286,255 | 285,892 | 283,205 | 280,582 | 266,499 | | 855,352 | 678,229 |
| Net interest revenue | 361,458 | 356,318 | 353,908 | 334,605 | 328,960 | | 1,071,684 | 1,016,751 |
| Provision for credit losses | 12,000 | 22,000 | 22,000 | 38,000 | 17,000 | | 56,000 | 42,000 |
| Net interest revenue, after provision for credit losses | 349,458 | 334,318 | 331,908 | 296,605 | 311,960 | | 1,015,684 | 974,751 |
| | | | | | | | | |
| NONINTEREST REVENUE: | | | | | | | | |
| Mortgage banking | 1,133 | 6,173 | 6,443 | (1,137) | 5,684 | | 13,749 | 20,115 |
| Credit card, debit card and merchant fees | 12,649 | 12,770 | 12,162 | 12,902 | 12,413 | | 37,581 | 36,882 |
| Deposit service charges | 18,814 | 17,652 | 18,338 | 11,161 | 16,867 | | 54,803 | 50,557 |
| Security (losses) gains, net | (2,947) | (4) | (9) | (384,524) | 64 | | (2,960) | (51,127) |
| Wealth management | 24,110 | 24,006 | 22,833 | 22,576 | 21,079 | | 70,949 | 64,351 |
| Other noninterest income | 32,142 | 40,061 | 24,019 | 27,562 | 17,882 | | 96,223 | 74,338 |
| Total noninterest revenue | 85,901 | 100,658 | 83,786 | (311,460) | 73,989 | | 270,345 | 195,116 |
| | | | | | | | | |
| NONINTEREST EXPENSE: | | | | | | | | |
| Salaries and employee benefits | 152,237 | 148,038 | 156,650 | 148,081 | 161,627 | | 456,926 | 486,641 |
| Occupancy and equipment | 28,894 | 29,367 | 28,640 | 28,009 | 27,069 | | 86,901 | 82,962 |
| Data processing and software | 29,164 | 29,467 | 30,028 | 32,922 | 29,127 | | 88,658 | 87,521 |
| Merger expense | — | — | — | — | — | | — | 5,192 |
| Amortization of intangibles | 3,933 | 3,999 | 4,066 | 4,405 | 4,436 | | 11,998 | 14,983 |
| Deposit insurance assessments | 7,481 | 15,741 | 8,414 | 45,733 | 10,425 | | 31,637 | 26,491 |
| Pension settlement expense | — | — | — | 11,226 | 600 | | — | 600 |
| Other noninterest expense | 37,729 | 30,085 | 35,409 | 58,991 | 41,158 | | 103,223 | 122,165 |
| Total noninterest expense | 259,438 | 256,697 | 263,207 | 329,367 | 274,442 | | 779,343 | 826,555 |
| Income (loss) from continuing operations before taxes | 175,921 | 178,279 | 152,487 | (344,222) | 111,507 | | 506,686 | 343,312 |
| Income tax expense (benefit) | 39,482 | 40,807 | 35,509 | (80,485) | 24,355 | | 115,797 | 75,891 |
| Income (loss) from continuing operations | $ 136,439 | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | | 390,889 | 267,421 |
| Income from discontinued operations | — | — | — | 706,129 | 7,242 | | — | 21,462 |
| Income tax expense from discontinued operations | — | — | — | 183,328 | 1,811 | | — | 5,643 |
| Income from discontinued operations, net of taxes | — | — | — | 522,801 | 5,431 | | — | 15,819 |
| Net income | 136,439 | 137,472 | 116,978 | 259,064 | 92,583 | | 390,889 | 283,240 |
| Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | | 7,116 | 7,116 |
| Net income available to common shareholders | $ 134,067 | $ 135,100 | $ 114,606 | $ 256,692 | $ 90,211 | | $ 383,773 | $ 276,124 |
| Diluted earnings (losses) per common share from continuing operations | $ 0.72 | $ 0.73 | $ 0.62 | $ (1.46) | $ 0.46 | | $ 2.07 | $ 1.41 |
| Diluted earnings per common share | $ 0.72 | $ 0.73 | $ 0.62 | $ 1.41 | $ 0.49 | | $ 2.07 | $ 1.50 |
| Table 7 Selected Loan Portfolio Data (Unaudited)
| |||||
| | Quarter Ended | ||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| LOAN AND LEASE PORTFOLIO: | | | | | |
| Commercial and industrial | | | | | |
| Non-real estate | $ 8,692,639 | $ 9,136,929 | $ 9,121,457 | $ 8,935,598 | $ 9,199,024 |
| Owner occupied | 4,557,723 | 4,475,647 | 4,442,357 | 4,349,060 | 4,361,530 |
| Total commercial and industrial | 13,250,362 | 13,612,576 | 13,563,814 | 13,284,658 | 13,560,554 |
| Commercial real estate | | | | | |
| Construction, acquisition and development | 3,931,821 | 3,892,527 | 3,864,351 | 3,910,962 | 3,819,307 |
| Income producing | 5,978,695 | 5,851,340 | 5,783,943 | 5,736,871 | 5,720,606 |
| Total commercial real estate | 9,910,516 | 9,743,867 | 9,648,294 | 9,647,833 | 9,539,913 |
| Consumer | | | | | |
| Residential mortgages | 9,933,222 | 9,740,713 | 9,447,675 | 9,329,692 | 9,186,179 |
| Other consumer | 209,872 | 215,617 | 222,833 | 234,839 | 233,947 |
| Total consumer | 10,143,094 | 9,956,330 | 9,670,508 | 9,564,531 | 9,420,126 |
| Total loans and leases, net of unearned income | $ 33,303,972 | $ 33,312,773 | $ 32,882,616 | $ 32,497,022 | $ 32,520,593 |
| | | | | | |
| NONPERFORMING ASSETS | | | | | |
| Nonperforming Loans and Leases | | | | | |
| Commercial and industrial | | | | | |
| Non-real estate | $ 148,267 | $ 121,171 | $ 149,683 | $ 131,559 | $ 67,962 |
| Owner occupied | 15,127 | 13,700 | 5,962 | 7,097 | 6,486 |
| Total commercial and industrial | 163,394 | 134,871 | 155,645 | 138,656 | 74,448 |
| Commercial real estate | | | | | |
| Construction, acquisition and development | 2,034 | 4,923 | 3,787 | 1,859 | 4,608 |
| Income producing | 25,112 | 15,002 | 19,428 | 17,485 | 12,251 |
| Total commercial real estate | 27,146 | 19,925 | 23,215 | 19,344 | 16,859 |
| Consumer | | | | | |
| Residential mortgages | 82,191 | 61,677 | 61,886 | 57,881 | 58,488 |
| Other consumer | 223 | 273 | 261 | 260 | 243 |
| Total consumer | 82,414 | 61,950 | 62,147 | 58,141 | 58,731 |
| Total nonperforming loans and leases (1) | $ 272,954 | $ 216,746 | $ 241,007 | $ 216,141 | $ 150,038 |
| | | | | | |
| Other real estate owned and repossessed assets | 5,354 | 4,793 | 5,280 | 6,246 | 2,927 |
| Total nonperforming assets | $ 278,308 | $ 221,539 | $ 246,287 | $ 222,387 | $ 152,965 |
| | | | | | |
| Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA | $ 81,632 | $ 71,418 | $ 59,897 | $ 49,551 | $ 42,046 |
| | | | | | |
| Loans and leases 90+ days past due, still accruing | $ 11,757 | $ 6,150 | $ 30,048 | $ 22,466 | $ 9,152 |
| |
| (1) At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million. |
| Table 8 Allowance for Credit Losses (Unaudited)
| |||||
| | Quarter Ended | ||||
| (Dollars in thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| ALLOWANCE FOR CREDIT LOSSES: | | | | | |
| Balance, beginning of period | $ 470,022 | $ 472,575 | $ 468,034 | $ 446,859 | $ 466,013 |
| Charge-offs: | | | | | |
| Commercial and industrial | (21,620) | (23,340) | (16,997) | (21,385) | (34,959) |
| Commercial real estate | (222) | (649) | (2,244) | (2,290) | (931) |
| Consumer | (2,681) | (2,294) | (2,395) | (3,229) | (1,608) |
| Total loans charged-off | (24,523) | (26,283) | (21,636) | (26,904) | (37,498) |
| Recoveries: | | | | | |
| Commercial and industrial | 1,647 | 2,943 | 1,312 | 2,117 | 2,240 |
| Commercial real estate | 65 | 101 | 150 | 95 | 201 |
| Consumer | 648 | 686 | 715 | 867 | 903 |
| Total recoveries | 2,360 | 3,730 | 2,177 | 3,079 | 3,344 |
| Net charge-offs | (22,163) | (22,553) | (19,459) | (23,825) | (34,154) |
| Provision for credit losses related to loans and leases | 13,000 | 20,000 | 24,000 | 45,000 | 15,000 |
| Balance, end of period | $ 460,859 | $ 470,022 | $ 472,575 | $ 468,034 | $ 446,859 |
| | | | | | |
| Average loans and leases, net of unearned income, for period | $ 33,279,819 | $ 32,945,526 | $ 32,737,574 | $ 32,529,030 | $ 32,311,572 |
| Ratio: Net charge-offs to average loans and leases (2) | 0.26 % | 0.28 % | 0.24 % | 0.29 % | 0.42 % |
| | | | | | |
| RESERVE FOR UNFUNDED COMMITMENTS (1) | | | | | |
| Balance, beginning of period | $ 8,551 | $ 6,551 | $ 8,551 | $ 15,551 | $ 13,551 |
| Provision (reversal) for credit losses for unfunded commitments | (1,000) | 2,000 | (2,000) | (7,000) | 2,000 |
| Balance, end of period | $ 7,551 | $ 8,551 | $ 6,551 | $ 8,551 | $ 15,551 |
| |
| (1) The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets. |
| (2) Annualized. |
| Table 9 Loan Portfolio by Grades (Unaudited) | |||||||
| | |||||||
| | September 30, 2024 | ||||||
| (In thousands) | Pass | Special Mention | Substandard | Doubtful | Impaired | Purchased Credit | Total |
| LOAN AND LEASE PORTFOLIO: | | | | | | | |
| Commercial and industrial | | | | | | | |
| Non-real estate | $ 8,190,551 | $ 171,866 | $ 258,496 | $ 13,325 | $ 54,795 | $ 3,606 | $ 8,692,639 |
| Owner occupied | 4,506,806 | 1,530 | 39,101 | — | 9,187 | 1,099 | 4,557,723 |
| Total commercial and industrial | 12,697,357 | 173,396 | 297,597 | 13,325 | 63,982 | 4,705 | 13,250,362 |
| Commercial real estate | | | | | | | |
| Construction, acquisition and development | 3,918,273 | — | 13,548 | — | — | — | 3,931,821 |
| Income producing | 5,767,252 | 8,611 | 180,414 | — | 22,418 | — | 5,978,695 |
| Total commercial real estate | 9,685,525 | 8,611 | 193,962 | — | 22,418 | — | 9,910,516 |
| Consumer | | | | | | | |
| Residential mortgages | 9,831,527 | 795 | 91,863 | — | 7,579 | 1,458 | 9,933,222 |
| Other consumer | 209,460 | — | 412 | — | — | — | 209,872 |
| Total consumer | 10,040,987 | 795 | 92,275 | — | 7,579 | 1,458 | 10,143,094 |
| Total loans and leases, net of unearned income | $ 32,423,869 | $ 182,802 | $ 583,834 | $ 13,325 | $ 93,979 | $ 6,163 | $ 33,303,972 |
| | June 30, 2024 | |||||
| (In thousands) | Pass | Special Mention | Substandard | Impaired | Purchased Credit | Total |
| LOAN AND LEASE PORTFOLIO: | | | | | | |
| Commercial and industrial | | | | | | |
| Non-real estate | $ 8,657,327 | $ 116,208 | $ 309,809 | $ 49,914 | $ 3,671 | $ 9,136,929 |
| Owner occupied | 4,413,813 | 9,872 | 42,860 | 7,998 | 1,104 | 4,475,647 |
| Total commercial and industrial | 13,071,140 | 126,080 | 352,669 | 57,912 | 4,775 | 13,612,576 |
| Commercial real estate | | | | | | |
| Construction, acquisition and development | 3,875,914 | 926 | 14,273 | 1,414 | — | 3,892,527 |
| Income producing | 5,655,410 | 12,007 | 170,305 | 13,618 | — | 5,851,340 |
| Total commercial real estate | 9,531,324 | 12,933 | 184,578 | 15,032 | — | 9,743,867 |
| Consumer | | | | | | |
| Residential mortgages | 9,658,697 | 799 | 79,759 | — | 1,458 | 9,740,713 |
| Other consumer | 215,104 | — | 513 | — | — | 215,617 |
| Total consumer | 9,873,801 | 799 | 80,272 | — | 1,458 | 9,956,330 |
| Total loans and leases, net of unearned income | $ 32,476,265 | $ 139,812 | $ 617,519 | $ 72,944 | $ 6,233 | $ 33,312,773 |
| Table 10 Geographical Loan Information (Unaudited)
| |||||||||||
| | September 30, 2024 | ||||||||||
| (Dollars in thousands) | Alabama | Arkansas | Florida | Georgia | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total |
| LOAN AND LEASE PORTFOLIO: | | | | | | | | | | | |
| Commercial and industrial | | | | | | | | | | | |
| Non-real estate | $ 373,496 | $ 174,110 | $ 503,478 | $ 451,079 | $ 347,397 | $ 493,209 | $ 67,512 | $ 366,114 | $ 3,443,772 | $ 2,472,472 | $ 8,692,639 |
| Owner occupied | 342,037 | 248,109 | 302,228 | 323,643 | 296,937 | 625,425 | 101,509 | 162,176 | 1,749,994 | 405,665 | 4,557,723 |
| Total commercial and industrial | 715,533 | 422,219 | 805,706 | 774,722 | 644,334 | 1,118,634 | 169,021 | 528,290 | 5,193,766 | 2,878,137 | 13,250,362 |
| Commercial real estate | | | | | | | | | | | |
| Construction, acquisition and | 214,627 | 72,186 | 467,852 | 553,316 | 42,963 | 183,412 | 40,413 | 166,889 | 1,604,724 | 585,439 | 3,931,821 |
| Income producing | 425,613 | 248,133 | 408,683 | 574,925 | 232,605 | 428,569 | 204,351 | 323,786 | 2,312,282 | 819,748 | 5,978,695 |
| Total commercial real estate | 640,240 | 320,319 | 876,535 | 1,128,241 | 275,568 | 611,981 | 244,764 | 490,675 | 3,917,006 | 1,405,187 | 9,910,516 |
| Consumer | | | | | | | | | | | |
| Residential mortgages | 1,284,111 | 406,108 | 691,794 | 436,840 | 473,271 | 1,193,982 | 208,750 | 759,480 | 4,241,278 | 237,608 | 9,933,222 |
| Other consumer | 27,230 | 17,386 | 5,223 | 7,425 | 10,771 | 83,311 | 1,542 | 15,909 | 35,564 | 5,511 | 209,872 |
| Total consumer | 1,311,341 | 423,494 | 697,017 | 444,265 | 484,042 | 1,277,293 | 210,292 | 775,389 | 4,276,842 | 243,119 | 10,143,094 |
| Total | $2,667,114 | $ 1,166,032 | $ 2,379,258 | $ 2,347,228 | $ 1,403,944 | $ 3,007,908 | $ 624,077 | $ 1,794,354 | $ 13,387,614 | $ 4,526,443 | $33,303,972 |
| | | | | | | | | | | | |
| Loan growth (decline), excluding | $ 30,840 | $ 17,674 | $ 73,538 | $ 21,012 | $ 20,825 | $ (35,294) | $ 724 | $ 72,424 | $ (99,263) | $ (111,281) | $ (8,801) |
| Loan growth (decline), excluding | 4.65 % | 6.12 % | 12.69 % | 3.59 % | 5.99 % | (4.61) % | 0.46 % | 16.73 % | (2.93) % | (9.55) % | (0.11) % |
| | |||||||||||
| | June 30, 2024 | ||||||||||
| (Dollars in thousands) | Alabama | Arkansas | Florida | Georgia | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total |
| LOAN AND LEASE PORTFOLIO: | | | | | | | | | | | |
| Commercial and industrial | | | | | | | | | | | |
| Non-real estate | $ 385,251 | $ 166,222 | $ 516,717 | $ 491,184 | $ 351,731 | $ 535,447 | $ 74,535 | $ 331,710 | $ 3,644,417 | $ 2,639,715 | $ 9,136,929 |
| Owner occupied | 346,525 | 241,106 | 311,070 | 311,358 | 294,390 | 602,399 | 97,739 | 161,289 | 1,761,399 | 348,372 | 4,475,647 |
| Total commercial and industrial | 731,776 | 407,328 | 827,787 | 802,542 | 646,121 | 1,137,846 | 172,274 | 492,999 | 5,405,816 | 2,988,087 | 13,612,576 |
| Commercial real estate | | | | | | | | | | | |
| Construction, acquisition and | 195,318 | 68,561 | 420,107 | 529,531 | 48,133 | 210,904 | 43,146 | 168,474 | 1,632,361 | 575,992 | 3,892,527 |
| Income producing | 426,133 | 261,575 | 373,876 | 560,683 | 213,649 | 430,971 | 203,927 | 297,257 | 2,260,782 | 822,487 | 5,851,340 |
| Total commercial real estate | 621,451 | 330,136 | 793,983 | 1,090,214 | 261,782 | 641,875 | 247,073 | 465,731 | 3,893,143 | 1,398,479 | 9,743,867 |
| Consumer | | | | | | | | | | | |
| Residential mortgages | 1,257,791 | 393,730 | 679,028 | 426,349 | 464,187 | 1,177,933 | 202,196 | 747,121 | 4,146,204 | 246,174 | 9,740,713 |
| Other consumer | 25,256 | 17,164 | 4,922 | 7,111 | 11,029 | 85,548 | 1,810 | 16,079 | 41,714 | 4,984 | 215,617 |
| Total consumer | 1,283,047 | 410,894 | 683,950 | 433,460 | 475,216 | 1,263,481 | 204,006 | 763,200 | 4,187,918 | 251,158 | 9,956,330 |
| Total loans and leases, net of | $ 2,636,274 | $ 1,148,358 | $ 2,305,720 | $ 2,326,216 | $ 1,383,119 | $ 3,043,202 | $ 623,353 | $ 1,721,930 | $ 13,486,877 | $ 4,637,724 | $ 33,312,773 |
| Table 11 Noninterest Revenue and Expense (Unaudited)
| ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| NONINTEREST REVENUE: | | | | | | | | |
| Mortgage banking excl. MSR and MSR hedge market value adjustment | $ 8,171 | $ 9,875 | $ 9,116 | $ 6,966 | $ 7,946 | | $ 27,161 | $ 26,797 |
| MSR and MSR hedge market value adjustment | (7,038) | (3,702) | (2,673) | (8,103) | (2,262) | | (13,412) | (6,682) |
| Credit card, debit card and merchant fees | 12,649 | 12,770 | 12,162 | 12,902 | 12,413 | | 37,581 | 36,882 |
| Deposit service charges | 18,814 | 17,652 | 18,338 | 11,161 | 16,867 | | 54,803 | 50,557 |
| Security (losses) gains, net | (2,947) | (4) | (9) | (384,524) | 64 | | (2,960) | (51,127) |
| Trust and asset management income | 12,055 | 12,645 | 11,322 | 11,301 | 10,574 | | 36,023 | 31,211 |
| Investment advisory fees | 8,641 | 8,180 | 8,336 | 8,084 | 8,428 | | 25,157 | 23,320 |
| Brokerage and annuity fees | 3,414 | 3,181 | 3,175 | 3,191 | 2,077 | | 9,769 | 9,820 |
| Bank-owned life insurance | 4,353 | 4,370 | 3,946 | 4,728 | 4,108 | | 12,670 | 11,566 |
| Other miscellaneous income | 27,789 | 35,691 | 20,073 | 22,834 | 13,774 | | 83,553 | 62,772 |
| Total noninterest revenue | $ 85,901 | $ 100,658 | $ 83,786 | $ (311,460) | $ 73,989 | | $ 270,345 | $ 195,116 |
| | | | | | | | | |
| NONINTEREST EXPENSE: | | | | | | | | |
| Salaries and employee benefits | $ 152,237 | $ 148,038 | $ 156,650 | $ 148,081 | $ 161,627 | | $ 456,926 | $ 486,641 |
| Occupancy and equipment | 28,894 | 29,367 | 28,640 | 28,009 | 27,069 | | 86,901 | 82,962 |
| Deposit insurance assessments | 7,481 | 15,741 | 8,414 | 45,733 | 10,425 | | 31,637 | 26,491 |
| Pension settlement expense | — | — | — | 11,226 | 600 | | — | 600 |
| Advertising and public relations | 5,481 | 6,537 | 4,224 | 12,632 | 5,671 | | 16,241 | 15,530 |
| Foreclosed property expense | 486 | 515 | 268 | 915 | 270 | | 1,269 | 1,573 |
| Telecommunications | 1,513 | 1,441 | 1,545 | 1,356 | 1,520 | | 4,498 | 4,419 |
| Travel and entertainment | 2,612 | 2,549 | 2,236 | 3,146 | 2,442 | | 7,397 | 7,857 |
| Data processing and software | 29,164 | 29,467 | 30,028 | 32,922 | 29,127 | | 88,658 | 87,521 |
| Professional, consulting and outsourcing | 4,115 | 3,534 | 3,935 | 5,194 | 5,017 | | 11,584 | 14,698 |
| Amortization of intangibles | 3,933 | 3,999 | 4,066 | 4,405 | 4,436 | | 11,998 | 14,983 |
| Legal | 3,664 | 758 | 3,682 | 13,724 | 3,316 | | 8,104 | 6,369 |
| Merger expense | — | — | — | — | — | | — | 5,192 |
| Postage and shipping | 1,677 | 1,622 | 2,205 | 1,907 | 2,292 | | 5,504 | 6,536 |
| Other miscellaneous expense | 18,181 | 13,129 | 17,314 | 20,117 | 20,630 | | 48,626 | 65,183 |
| Total noninterest expense | $ 259,438 | $ 256,697 | $ 263,207 | $ 329,367 | $ 274,442 | | $ 779,343 | $ 826,555 |
| | | | | | | | | |
| Table 12 Average Balance and Yields (Unaudited) | |||||||||||
| | |||||||||||
| | Quarter Ended | ||||||||||
| | September 30, 2024 | | June 30, 2024 | | September 30, 2023 | ||||||
| (Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | | Average Balance | Income/ | Yield/ Rate | | Average Balance | Income/ | Yield/ Rate |
| ASSETS | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | |
| Loans and leases, excluding accretion | $ 33,279,819 | $ 553,394 | 6.62 % | | $ 32,945,526 | $ 537,179 | 6.56 % | | $ 32,311,572 | $ 513,989 | 6.31 % |
| Accretion income on acquired loans | | 2,992 | 0.04 | | | 2,981 | 0.03 | | | 6,587 | 0.08 |
| Loans held for sale | 134,313 | 1,630 | 4.83 | | 114,359 | 1,652 | 5.81 | | 115,653 | 1,468 | 5.04 |
| Investment securities | | | | | | | | | | | |
| Taxable | 7,834,596 | 59,732 | 3.03 | | 7,954,865 | 62,852 | 3.18 | | 9,635,084 | 50,277 | 2.07 |
| Tax-exempt | 81,040 | 808 | 3.97 | | 78,687 | 807 | 4.12 | | 369,357 | 3,006 | 3.23 |
| Total investment securities | 7,915,636 | 60,540 | 3.04 | | 8,033,552 | 63,659 | 3.19 | | 10,004,441 | 53,283 | 2.11 |
| Other investments | 2,210,277 | 29,851 | 5.37 | | 2,758,385 | 37,383 | 5.45 | | 1,571,973 | 21,213 | 5.35 |
| Total interest-earning assets | 43,540,045 | 648,407 | 5.92 % | | 43,851,822 | 642,854 | 5.90 % | | 44,003,639 | 596,540 | 5.38 % |
| Other assets | 4,733,851 | | | | 4,816,078 | | | | 5,111,197 | | |
| Allowance for credit losses | 469,919 | | | | 475,181 | | | | 459,698 | | |
| Total assets | $ 47,803,977 | | | | $ 48,192,719 | | | | $ 48,655,138 | | |
| | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| Interest bearing demand and money market | $ 18,043,686 | $ 142,179 | 3.13 % | | $ 18,770,093 | $ 146,279 | 3.13 % | | $ 17,970,463 | 126,296 | 2.79 % |
| Savings deposits | 2,584,761 | 3,695 | 0.57 | | 2,652,019 | 3,743 | 0.57 | | 2,913,027 | 4,108 | 0.56 |
| Time deposits | 8,389,472 | 94,944 | 4.50 | | 7,920,946 | 89,173 | 4.53 | | 7,660,868 | 76,867 | 3.98 |
| Total interest-bearing deposits | 29,017,919 | 240,818 | 3.30 | | 29,343,058 | 239,195 | 3.28 | | 28,544,358 | 207,271 | 2.88 |
| Fed funds purchased, securities sold under agreement to | 44,582 | 572 | 5.10 | | 65,821 | 732 | 4.47 | | 837,773 | 9,007 | 4.27 |
| Short-term FHLB borrowings | 11 | — | — | | — | — | — | | 224 | 2 | 3.54 |
| Short-term BTFP borrowings | 3,500,000 | 41,992 | 4.77 | | 3,500,000 | 41,536 | 4.77 | | 3,500,000 | 45,433 | 5.15 |
| Subordinated and long-term borrowings | 265,790 | 2,873 | 4.30 | | 404,231 | 4,429 | 4.41 | | 449,568 | 4,786 | 4.22 |
| Total interest-bearing liabilities | 32,828,302 | 286,255 | 3.47 % | | 33,313,110 | 285,892 | 3.45 % | | 33,331,923 | 266,499 | 3.17 % |
| Noninterest-bearing liabilities: | | | | | | | | | | | |
| Demand deposits | 8,616,534 | | | | 8,757,029 | | | | 9,924,554 | | |
| Other liabilities | 938,315 | | | | 915,326 | | | | 893,499 | | |
| Total liabilities | 42,383,151 | | | | 42,985,465 | | | | 44,149,976 | | |
| Shareholders' equity | 5,420,826 | | | | 5,207,254 | | | | 4,505,162 | | |
| Total liabilities and shareholders' equity | $ 47,803,977 | | | | $ 48,192,719 | | | | $ 48,655,138 | | |
| Net interest income/net interest spread | | 362,152 | 2.45 % | | | 356,962 | 2.45 % | | | 330,041 | 2.21 % |
| Net yield on earning assets/net interest margin | | | 3.31 % | | | | 3.27 % | | | | 2.98 % |
| Taxable equivalent adjustment: | | | | | | | | | | | |
| Loans and investment securities | | (694) | | | | (644) | | | | (1,081) | |
| Net interest revenue | | $ 361,458 | | | | $ 356,318 | | | | $ 328,960 | |
| Table 12 Average Balance and Yields Continued | |||||||
| | Year-To-Date | ||||||
| | September 30, 2024 | | September 30, 2023 | ||||
| (Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | | Average Balance | Income/ | Yield/ Rate |
| ASSETS | | | | | | | |
| Interest-earning assets: | | | | | | | |
| Loans and leases, excluding accretion | $ 32,988,706 | $ 1,616,450 | 6.54 % | | $ 31,706,637 | $ 1,452,912 | 6.13 % |
| Accretion income on acquired loans | | 9,489 | 0.04 | | | 21,822 | 0.09 |
| Loans held for sale | 107,109 | 4,467 | 5.57 | | 76,770 | 3,033 | 5.28 |
| Investment securities | | | | | | | |
| Taxable | 7,991,692 | 185,989 | 3.11 | | 10,283,587 | 152,320 | 1.98 |
| Tax-exempt | 80,699 | 2,485 | 4.11 | | 383,031 | 9,214 | 3.22 |
| Total investment securities | 8,072,391 | 188,474 | 3.12 | | 10,666,618 | 161,534 | 2.02 |
| Other investments | 2,703,228 | 110,130 | 5.44 | | 1,567,483 | 58,876 | 5.02 |
| Total interest-earning assets | 43,871,434 | 1,929,010 | 5.87 % | | 44,017,508 | 1,698,177 | 5.16 % |
| Other assets | 4,813,124 | | | | 5,227,122 | | |
| Allowance for credit losses | 472,972 | | | | 453,133 | | |
| Total assets | $ 48,211,586 | | | | $ 48,791,497 | | |
| | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| Interest-bearing liabilities: | | | | | | | |
| Interest bearing demand and money market | $ 18,703,458 | 437,861 | 3.13 % | | $ 18,322,003 | $ 333,578 | 2.43 % |
| Savings deposits | 2,644,193 | 11,238 | 0.57 | | 3,119,830 | 11,037 | 0.47 |
| Time deposits | 7,888,094 | 264,786 | 4.48 | | 6,383,257 | 166,333 | 3.48 |
| Total interest-bearing deposits | 29,235,745 | 713,885 | 3.26 | | 27,825,090 | 510,948 | 2.46 |
| Fed funds purchased, securities sold under agreement to repurchase and other | 106,357 | 3,832 | 4.81 | | 814,943 | 24,334 | 3.99 |
| Short-term FHLB borrowings | 4 | — | — | | 1,858,102 | 68,235 | 4.91 |
| Short-term BTFP borrowings | 3,500,000 | 125,632 | 4.79 | | 1,564,103 | 60,248 | 5.15 |
| Subordinated and long-term borrowings | 367,826 | 12,003 | 4.36 | | 455,810 | 14,464 | 4.24 |
| Total interest-bearing liabilities | 33,209,932 | 855,352 | 3.44 % | | 32,518,048 | 678,229 | 2.79 % |
| Noninterest-bearing liabilities: | | | | | | | |
| Demand deposits | 8,814,668 | | | | 10,942,567 | | |
| Other liabilities | 912,407 | | | | 850,159 | | |
| Total liabilities | 42,937,007 | | | | 44,310,774 | | |
| Shareholders' equity | 5,274,579 | | | | 4,480,723 | | |
| Total liabilities and shareholders' equity | $ 48,211,586 | | | | $ 48,791,497 | | |
| Net interest income/net interest spread | | 1,073,658 | 2.43 % | | | 1,019,948 | 2.37 % |
| Net yield on earning assets/net interest margin | | | 3.27 % | | | | 3.10 % |
| Taxable equivalent adjustment: | | | | | | | |
| Loans and investment securities | | (1,974) | | | | (3,197) | |
| Net interest revenue | | $ 1,071,684 | | | | $ 1,016,751 | |
| Table 13 Selected Additional Data (Unaudited) | |||||
| | |||||
| | Quarter Ended | ||||
| (Dollars in thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| MORTGAGE SERVICING RIGHTS ("MSR"): | | | | | |
| Fair value, beginning of period | $ 113,595 | $ 111,685 | $ 106,824 | $ 116,266 | $ 111,417 |
| Originations of servicing assets | 3,361 | 3,687 | 2,736 | 2,636 | 4,065 |
| Changes in fair value: | | | | | |
| Due to changes in valuation inputs or assumptions(1) | (8,232) | 927 | 4,781 | (9,043) | 2,888 |
| Other changes in fair value(2) | (3,833) | (2,704) | (2,656) | (3,035) | (2,104) |
| Fair value, end of period | $ 104,891 | $ 113,595 | $ 111,685 | $ 106,824 | $ 116,266 |
| | | | | | |
| MORTGAGE BANKING REVENUE: | | | | | |
| Origination | $ 2,145 | $ 3,976 | $ 3,165 | $ 1,040 | $ 2,031 |
| Servicing | 6,026 | 5,899 | 5,951 | 5,926 | 5,915 |
| Total mortgage banking revenue excluding MSR | 8,171 | 9,875 | 9,116 | 6,966 | 7,946 |
| Due to changes in valuation inputs or assumptions(1) | (8,232) | 927 | 4,781 | (9,043) | 2,888 |
| Other changes in fair value(2) | (3,833) | (2,704) | (2,656) | (3,035) | (2,104) |
| Market value adjustment on MSR Hedge | 5,027 | (1,925) | (4,798) | 3,975 | (3,046) |
| Total mortgage banking revenue | $ 1,133 | $ 6,173 | $ 6,443 | $ (1,137) | $ 5,684 |
| | | | | | |
| Mortgage loans serviced | $ 7,927,028 | $ 7,824,895 | $ 7,764,936 | $ 7,702,592 | $ 7,643,885 |
| MSR/mortgage loans serviced | 1.32 % | 1.45 % | 1.44 % | 1.39 % | 1.52 % |
| | |
| (1) | Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates. |
| (2) | Primarily reflects changes due to realized cash flows. |
| | Quarter Ended | ||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
| AVAILABLE FOR SALE SECURITIES, at fair value | | | | | |
| U.S. Treasury securities | $ — | $ — | $ 239,402 | $ 465,018 | $ 1,996 |
| Obligations of U.S. government agencies | 300,730 | 305,200 | 318,233 | 332,011 | 1,004,374 |
| Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"): | | | | | |
| Residential pass-through: | | | | | |
| Guaranteed by GNMA | 71,001 | 69,788 | 72,034 | 75,662 | 73,649 |
| Issued by FNMA and FHLMC | 4,163,760 | 4,125,416 | 4,254,227 | 4,387,101 | 5,541,895 |
| Other residential mortgage-back securities | 1,135,004 | 1,233,868 | 1,210,617 | 727,434 | 146,063 |
| Commercial mortgage-backed securities | 1,664,288 | 1,673,823 | 1,694,967 | 1,742,837 | 2,271,680 |
| Total MBS | 7,034,053 | 7,102,895 | 7,231,845 | 6,933,034 | 8,033,287 |
| Obligations of states and political subdivisions | 137,996 | 133,155 | 134,643 | 137,624 | 392,252 |
| Other domestic debt securities | 51,599 | 64,288 | 67,421 | 67,197 | 71,741 |
| Foreign debt securities | 317,307 | 315,884 | 315,045 | 140,592 | 139,581 |
| Total available for sale securities | $ 7,841,685 | $ 7,921,422 | $ 8,306,589 | $ 8,075,476 | $ 9,643,231 |
| Table 14 |
| Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions |
| (Unaudited) |
| |
| Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted income from continuing operations, adjusted income from continuing operations available to common shareholders, pre-tax pre-provision net revenue from continuing operations, adjusted pre-tax pre-provision net revenue from continuing operations, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity from continuing operations, return on average tangible common equity, adjusted return on average tangible common equity from continuing operations, adjusted return on average tangible common equity, adjusted return on average assets from continuing operations, adjusted return on average assets, adjusted return on average common shareholders' equity from continuing operations, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio from continuing operations, and adjusted dividend payout ratio from continuing operations. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names. |
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Adjusted Income from Continuing Operations Available to Common | | | | | | | | |
| Income (loss) from continuing operations | $ 136,439 | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | | $ 390,889 | $ 267,421 |
| Plus: Merger expense | — | — | — | — | — | | — | 5,192 |
| Incremental merger related expense | — | — | — | 7,500 | — | | — | 10,631 |
| Gain on extinguishment of debt | — | (1,098) | (576) | (652) | — | | (1,674) | (1,140) |
| Restructuring and other nonroutine expenses | (920) | 6,675 | 251 | 41,522 | 9,596 | | 6,006 | 16,027 |
| Pension settlement expense | — | — | — | 11,226 | 600 | | — | 600 |
| Less: Security (losses) gains, net | (2,947) | (4) | (9) | (384,524) | 64 | | (2,960) | (51,127) |
| Gain on sale of businesses | — | 14,980 | — | — | — | | 14,980 | — |
| Nonroutine (losses) gains, net | — | — | — | — | (6,653) | | — | (6,653) |
| Tax adjustment | 476 | (2,209) | (74) | 105,275 | 3,944 | | (1,807) | 20,936 |
| Adjusted income from continuing operations | 137,990 | 130,282 | 116,736 | 75,108 | 99,992 | | 385,008 | 335,575 |
| Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | | 7,116 | 7,116 |
| Adjusted income from continuing operations available to common | $ 135,618 | $ 127,910 | $ 114,364 | $ 72,736 | $ 97,620 | | $ 377,892 | $ 328,459 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Pre-Tax Pre-Provision Net Revenue from Continuing Operations | | | | | | | | |
| Income (loss) from continuing operations | $ 136,439 | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | | $ 390,889 | $ 267,421 |
| Plus: Provision for credit losses | 12,000 | 22,000 | 22,000 | 38,000 | 17,000 | | 56,000 | 42,000 |
| Income tax expense (benefit) | 39,482 | 40,807 | 35,509 | (80,485) | 24,355 | | 115,797 | 75,891 |
| Pre-tax pre-provision net revenue from continuing operations | $ 187,921 | $ 200,279 | $ 174,487 | $ (306,222) | $ 128,507 | | $ 562,686 | $ 385,312 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing | | | | | | | | |
| Income (loss) from continuing operations | $ 136,439 | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | | $ 390,889 | $ 267,421 |
| Plus: Provision for credit losses | 12,000 | 22,000 | 22,000 | 38,000 | 17,000 | | 56,000 | 42,000 |
| Merger expense | — | — | — | — | — | | — | 5,192 |
| Incremental merger related expense | — | — | — | 7,500 | — | | — | 10,631 |
| Gain on extinguishment of debt | — | (1,098) | (576) | (652) | — | | (1,674) | (1,140) |
| Restructuring and other nonroutine expenses | (920) | 6,675 | 251 | 41,522 | 9,596 | | 6,006 | 16,027 |
| Pension settlement expense | — | — | — | 11,226 | 600 | | — | 600 |
| Income tax expense (benefit) | 39,482 | 40,807 | 35,509 | (80,485) | 24,355 | | 115,797 | 75,891 |
| Less: Security (losses) gains, net | (2,947) | (4) | (9) | (384,524) | 64 | | (2,960) | (51,127) |
| Gain on sale of businesses | — | 14,980 | — | — | — | | 14,980 | — |
| Nonroutine (losses) gains, net | — | — | — | — | (6,653) | | — | (6,653) |
| Adjusted pre-tax pre-provision net revenue from continuing | $ 189,948 | $ 190,880 | $ 174,171 | $ 137,898 | $ 145,292 | | $ 554,998 | $ 474,402 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Total Adjusted Revenue | | | | | | | | |
| Net interest revenue | $ 361,458 | $ 356,318 | $ 353,908 | $ 334,605 | $ 328,960 | | $ 1,071,684 | $ 1,016,751 |
| Total Adjusted Noninterest Revenue | | | | | | | | |
| Total noninterest revenue | $ 85,901 | $ 100,658 | $ 83,786 | $ (311,460) | $ 73,989 | | $ 270,345 | $ 195,116 |
| Less: Security (losses) gains, net | (2,947) | (4) | (9) | (384,524) | 64 | | (2,960) | (51,127) |
| Gain on sale of businesses | — | 14,980 | — | — | — | | 14,980 | — |
| Nonroutine gains (losses), net | — | — | — | — | (6,653) | | — | (6,653) |
| Total adjusted noninterest revenue | $ 88,848 | $ 85,682 | $ 83,795 | $ 73,064 | $ 80,578 | | $ 258,325 | $ 252,896 |
| Total adjusted revenue | $ 450,306 | $ 442,000 | $ 437,703 | $ 407,669 | $ 409,538 | | $ 1,330,009 | $ 1,269,647 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Total Adjusted Noninterest Expense | | | | | | | | |
| Total noninterest expense | $ 259,438 | $ 256,697 | $ 263,207 | $ 329,367 | $ 274,442 | | $ 779,343 | $ 826,555 |
| Less: Merger expense | — | — | — | — | — | | — | 5,192 |
| Incremental merger related expense | — | — | — | 7,500 | — | | — | 10,631 |
| Gain on extinguishment of debt | — | (1,098) | (576) | (652) | — | | (1,674) | (1,140) |
| Restructuring and other nonroutine expenses | (920) | 6,675 | 251 | 41,522 | 9,596 | | 6,006 | 16,027 |
| Pension settlement expense | — | — | — | 11,226 | 600 | | — | 600 |
| Total adjusted noninterest expense | $ 260,358 | $ 251,120 | $ 263,532 | $ 269,771 | $ 264,246 | | $ 775,011 | $ 795,245 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (In thousands) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| Total Tangible Assets, Excluding AOCI | | | | | | | | |
| Total assets | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | | $ 49,204,933 | $ 48,523,010 |
| Less: Goodwill | 1,366,923 | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 | | 1,366,923 | 1,367,785 |
| Other intangible assets, net | 87,094 | 91,027 | 96,126 | 100,191 | 104,596 | | 87,094 | 104,596 |
| Total tangible assets | 47,750,916 | 46,526,128 | 46,849,952 | 47,466,534 | 47,050,629 | | 47,750,916 | 47,050,629 |
| Less: AOCI | (590,342) | (782,462) | (791,333) | (761,829) | (1,309,921) | | (590,342) | (1,309,921) |
| Total tangible assets, excluding AOCI | $ 48,341,258 | $ 47,308,590 | $ 47,641,285 | $ 48,228,363 | $ 48,360,550 | | $ 48,341,258 | $ 48,360,550 |
| | ||||||||
| | Quarter Ended | | Year-to-date | |||||
| (Dollars in thousands, except per share data) | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | | Sep 2024 | Sep 2023 |
| PERIOD END BALANCES: | | | | | | | | |
| Total Shareholders' Equity, Excluding AOCI | | | | | | | | |
| Total shareholders' equity | $5,572,863 | $5,287,758 | $5,189,932 | $5,167,843 | $4,395,257 | | $5,572,863 | $4,395,257 |
| Less: AOCI | (590,342) | (782,462) | (791,333) | (761,829) | (1,309,921) | | (590,342) | (1,309,921) |
| Total shareholders' equity, excluding AOCI | $6,163,205 | $6,070,220 | $5,981,265 | $5,929,672 | $5,705,178 | | $6,163,205 | $5,705,178 |
| | | | | | | | | |
| Common Shareholders' Equity, Excluding AOCI | | | | | | | | |
| Total shareholders' equity | $5,572,863 | $5,287,758 | $5,189,932 | $5,167,843 | $4,395,257 | | $5,572,863 | $4,395,257 |
| Less: preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | | 166,993 | 166,993 |
| Common shareholders' equity | 5,405,870 | 5,120,765 | 5,022,939 | 5,000,850 | 4,228,264 | | 5,405,870 | 4,228,264 |
| Less: AOCI | (590,342) | (782,462) | (791,333) | (761,829) | (1,309,921) | | (590,342) | (1,309,921) |
| Common shareholders' equity, excluding AOCI | $5,996,212 | $5,903,227 | $5,814,272 | $5,762,679 | $5,538,185 | | $5,996,212 | $5,538,185 |
| | | | | | | | | |
| Total Tangible Common Shareholders' Equity, Excluding AOCI | | | | | | | | |
| Total shareholders' equity | $5,572,863 | $5,287,758 | $5,189,932 | $5,167,843 | $4,395,257 | | $5,572,863 | $4,395,257 |
| Less: Goodwill | 1,366,923 | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 | | 1,366,923 | 1,367,785 |
| Other intangible assets, net | 87,094 | 91,027 | 96,126 | 100,191 | 104,596 | | 87,094 | 104,596 |
| Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | | 166,993 | 166,993 |
| Total tangible common shareholders' equity | 3,951,853 | 3,662,815 | 3,559,028 | 3,532,874 | 2,755,883 | | 3,951,853 | 2,755,883 |
| Less: AOCI | (590,342) | (782,462) | (791,333) | (761,829) | (1,309,921) | | (590,342) | (1,309,921) |
| Total tangible common shareholders' equity, excluding AOCI | $4,542,195 | $4,445,277 | $4,350,361 | $4,294,703 | $4,065,804 | | $4,542,195 | $4,065,804 |
| | | | | | | | | |
| AVERAGE BALANCES: | | | | | | | | |
| Total Tangible Common Shareholders' Equity | | | | | | | | |
| Total shareholders' equity | $5,420,826 | $5,207,254 | $5,194,048 | $4,507,343 | $4,505,162 | | $5,274,579 | $4,480,723 |
| Less: Goodwill | 1,366,923 | 1,367,358 | 1,367,785 | 1,367,916 | 1,367,785 | | 1,367,354 | 1,367,785 |
| Other intangible assets, net | 89,262 | 93,743 | 98,350 | 102,765 | 107,032 | | 93,769 | 112,510 |
| Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | | 166,993 | 166,993 |
| Total tangible common shareholders' equity | $3,797,648 | $3,579,160 | $3,560,920 | $2,869,669 | $2,863,352 | | $3,646,463 | $2,833,435 |
| | | | | | | | | |
| Total average assets | $47,803,977 | $48,192,719 | $48,642,540 | $48,444,176 | $48,655,138 | | $48,211,586 | $48,791,497 |
| Total shares of common stock outstanding | 182,315,142 | 182,430,427 | 182,681,325 | 182,871,775 | 182,611,075 | | 182,315,142 | 182,611,075 |
| Average shares outstanding-diluted | 185,496,110 | 185,260,963 | 185,574,130 | 182,688,190 | 184,645,004 | | 185,443,201 | 184,062,368 |
| | | | | | | | | |
| Tangible common shareholders' equity to tangible assets (1) | 8.28 % | 7.87 % | 7.60 % | 7.44 % | 5.86 % | | 8.28 % | 5.86 % |
| Tangible common shareholders' equity, excluding AOCI, to | 9.40 | 9.40 | 9.13 | 8.90 | 8.41 | | 9.40 | 8.41 |
| Return on average tangible common equity from continuing | 14.04 | 15.18 | 12.94 | (36.79) | 11.75 | | 14.06 | 12.28 |
| Return on average tangible common equity (4) | 14.04 | 15.18 | 12.94 | 35.49 | 12.50 | | 14.06 | 13.03 |
| Adjusted return on average tangible common equity from | 14.21 | 14.37 | 12.92 | 10.06 | 13.53 | | 13.84 | 15.50 |
| Adjusted return on average assets from continuing | 1.15 | 1.09 | 0.97 | 0.62 | 0.82 | | 1.07 | 0.92 |
| Adjusted return on average common shareholders' equity | 10.27 | 10.21 | 9.15 | 6.65 | 8.93 | | 9.88 | 10.18 |
| Pre-tax pre-provision net revenue from continuing | 1.56 | 1.67 | 1.44 | (2.51) | 1.05 | | 1.56 | 1.06 |
| Adjusted pre-tax pre-provision net revenue from continuing | 1.58 | 1.59 | 1.44 | 1.13 | 1.18 | | 1.54 | 1.30 |
| Tangible book value per common share (10) | $ 21.68 | $ 20.08 | $ 19.48 | $ 19.32 | $ 15.09 | | $ 21.68 | $ 15.09 |
| Tangible book value per common share, excluding AOCI (11) | 24.91 | 24.37 | 23.81 | 23.48 | 22.26 | | 24.91 | 22.26 |
| Adjusted earnings from continuing operations per common | $ 0.73 | $ 0.69 | $ 0.62 | $ 0.40 | $ 0.53 | | $ 2.04 | $ 1.78 |
| Adjusted dividend payout ratio from continuing operations (13) | 34.25 % | 36.23 % | 40.32 % | 58.75 % | 44.34 % | | 36.76 % | 39.61 % |
| Definitions of Non-GAAP Measures: | |
| (1) | Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net. |
| (2) | Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net. |
| (3) | Return on average tangible common equity from continuing operations is defined by the Company as annualized income available to common shareholders from continuing operation divided by average tangible common shareholders equity. |
| (4) | Return on average tangible common equity is defined by the Company as annualized income available to common shareholders divided by average tangible common shareholders equity. |
| (5) | Adjusted return on average tangible common equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average tangible common shareholders' equity. |
| (6) | Adjusted return on average assets from continuing operations is defined by the Company as annualized adjusted income from continuing operations divided by total average assets. |
| (7) | Adjusted return on average common shareholders' equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average common shareholders' equity. |
| (8) | Pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue from continuing operations divided by total average assets. |
| (9) | Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue from continuing operations divided by total average assets adjusted for items included in the definition and calculation of adjusted income. |
| (10) | Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. |
| (11) | Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding. |
| (12) | Adjusted earnings from continuing operations per common share is defined by the Company as adjusted income available to common shareholders from continuing operations divided by average common shares outstanding-diluted. |
| (13) | Adjusted dividend payout ratio from continuing operations is defined by the Company as common share dividends divided by adjusted income available to common shareholders from continuing operations. |
Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent Definitions
The efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment from continuing operations. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense from continuing operations.
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SOURCE Cadence Bank