Cadence Bank Announces First Quarter 2022 Financial Results
Cadence Bank (NYSE: CADE) reported strong financial results for Q1 2022, achieving a net income of $112.6 million or $0.60 per diluted share. Adjusted net income rose to $121.6 million or $0.65 per share. The bank saw loan growth of $307 million (4.6% annualized) and deposit growth of $767 million (7.7% annualized). Credit quality improved with a 22.4% decline in non-performing loans and no provisions for credit losses. Additionally, Cadence repurchased 5.1 million shares and increased dividends for the 10th consecutive year to $0.22 per share.
- Net income of $112.6 million for Q1 2022, up from $79.2 million in Q1 2021.
- Adjusted net income increased to $121.6 million, compared to $80.4 million in Q1 2021.
- Organic loan growth: $307 million (4.6% annualized).
- Organic deposit growth: $767 million (7.7% annualized).
- 22.4% decline in non-performing loans.
- Increased quarterly dividend to $0.22 per share.
- Net interest margin decreased to 2.92% from 3.15% in Q1 2021.
- Total shareholder's equity declined to $4.64 billion from $5.25 billion in Q4 2021.
TUPELO, Miss. and HOUSTON, April 25, 2022 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2022. Given the legacy Cadence merger closed on October 29, 2021, the first quarter of 2022 represents the first full quarter of combined earnings.
Highlights for the first quarter of 2022 included:
- Achieved quarterly net income available to common shareholders of
$112.6 million , or$0.60 per diluted common share, and adjusted net income available to common shareholders of$121.6 million , or$0.65 per diluted common share. - Reported
$160.4 million in adjusted pre-tax pre-provision net revenue (PPNR), or 1.36 percent of average assets on an annualized basis. - Generated net organic loan growth of approximately
$307 million for the quarter, or 4.6 percent on an annualized basis compared to linked quarter and total deposit and customer repo growth of approximately$767 million , or 7.7 percent on an annualized basis compared to linked quarter. - Continued stability in credit quality metrics including net recoveries of
$0.4 million and a 22.4 percent decline in total non-performing loans and leases; no provision for credit losses for the quarter. - Repurchased 5.1 million shares of outstanding Company common stock resulting in 183.5 million shares outstanding as of March 31, 2022.
- Increased the Company's quarterly common share dividend to
$0.22 per common share, representing the 10th continuous year of increased dividends.
"Our first quarter results reflect another highly successful quarter for core operating performance with an adjusted earnings per share of
Rollins continued, "Additional first quarter highlights include the repurchase of 5.1 million shares of Company common stock under our share repurchase program. Our board also increased the Company common stock dividend during the first quarter to
Paul Murphy, Executive Vice Chairman, added "As we look more closely at our front-line successes, we reported organic loan growth for the quarter of more than
Earnings Summary
The Company reported net income available to common shareholders of
The Company reported adjusted PPNR of
Net Interest Revenue
Net interest revenue was
The increase in net interest revenue in the first quarter of 2022 compared to the linked quarter reflected the full quarter's impact of the legacy Cadence merger, as well as the impact of fourth quarter deployment of cash into loans and securities, and a slight increase in accretion. The first quarter's increase in net interest margin reflected the deployment of cash into securities and lower deposit costs, partially offset by loan growth coming on at lower yields. The balance sheet remains asset sensitive, with approximately 28 percent of loans floating and another 41 percent of loans variable as of March 31, 2022.
Yields on net loans, loans held for sale, and leases excluding accretion, were 3.96 percent for the first quarter of 2022, compared with 4.06 percent for the fourth quarter of 2021, while yields on total interest earning assets were 3.10 percent for the first quarter of 2022, compared with 3.11 percent for the fourth quarter of 2021. The average cost of deposits declined to 0.15 percent for the first quarter of 2022, compared with 0.17 percent for the fourth quarter of 2021.
Net interest income for the first quarter of 2022 included
Balance Sheet Activity
Loans and leases, net of unearned income, continued to reflect solid growth, increasing
Provision for Credit Losses and Allowance for Credit Losses
Credit metrics for the first quarter of 2022 continued to reflect improvement compared to the linked quarter including net recoveries and a meaningful decrease in non-performing loans.
Total non-performing loans and leases were
Net recoveries for the first quarter of 2022 were
Noninterest Revenue
Noninterest revenue was
The net return from mortgage servicing rights was
Insurance commission revenue reflected strong seasonal performance at
The full quarter's impact of the legacy Cadence merger drove the linked quarter increases in wealth management revenue, deposit service fees and other noninterest revenue. Wealth management revenue was
Noninterest Expense
Noninterest expense for the first quarter of 2022 was
The increase in adjusted noninterest expense compared to the linked quarter was due to a full quarter of the legacy Cadence merger as well as seasonally higher compensation costs including payroll taxes and 401k match, partially offset by initial efficiencies associated with the legacy Cadence merger.
Adjusted noninterest expense excludes merger expense included as a separate line item on the income statement as well as incremental merger related expenses that are included in the respective expense categories. Merger expenses represent costs to complete the merger with no future benefit, while incremental merger related expenses represent costs to complete the merger for which the entity receives a future benefit. Merger expense was
Capital Management
Total shareholder's equity was
The Company's ratio of shareholders' equity to assets was 9.84 percent at March 31, 2022, compared with 10.95 percent at March 31, 2021 and 11.01 percent at December 31, 2021. The ratio of tangible common shareholders' equity to tangible assets was 6.31 percent at March 31, 2022, compared with 7.04 percent at March 31, 2021 and 7.54 percent at December 31, 2021.
During the first quarter of 2022, the Company repurchased 5.1 million shares of its common stock pursuant to its share repurchase program. The company has 4.9 million shares remaining on its current share repurchase authorization which will expire December 30, 2022.
Additionally during the first quarter of 2022, the Company increased its quarterly common share dividend to
Estimated regulatory capital ratios at March 31, 2022 included Common Equity Tier 1 capital of 10.57 percent, Tier 1 capital of 11.05 percent, Total risk-based capital of 13.27 percent, and Tier 1 leverage capital of 8.24 percent.
Summary
Rollins concluded, "Our first quarter results, which mark the first full quarter of combined financial results for the new Cadence Bank, highlight the strengths and the value that each respective board and management team saw in this transaction. We are pleased with our performance thus far and look forward to continued success together as we complete our integration efforts."
RECENT MERGER TRANSACTIONS
Cadence Bancorporation (NYSE: CADE)
On October 29, 2021, the Company completed the merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as legacy Cadence), pursuant to which legacy Cadence was merged with and into the Company (the Cadence Merger). Legacy Cadence operated 99 full-service banking offices in the southeast. As of October 29, 2021, legacy Cadence reported total assets of
FNS Bancshares, Inc.
On May 1, 2021, the Company completed the merger with FNS Bancshares, Inc., the parent company of FNB Bank, (collectively referred to as FNS), pursuant to which FNS was merged with and into the Company. FNS operated 17 full-service banking offices in Alabama, Georgia and Tennessee. The merger expanded the Company's presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas. As of May 1, 2021, FNS reported total assets of
National United Bancshares, Inc.
On May 1, 2021, the Company completed the merger with National United Bancshares, Inc., the parent company of National United, (collectively referred to as National United), pursuant to which National United was merged with and into the Company. National United operated 6 full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas. As of May 1, 2021, National United reported total assets of
Non-GAAP Measures and Ratios
This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). 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 under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 22 of this news release.
Conference Call and Webcast
The Company will conduct a conference call to discuss its first quarter 2022 financial results on April 26, 2022, 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 http://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
Forward-Looking Statements
Certain statements made in this news release are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "aspire," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "forecast," "foresee," "goal," "hope," "indicate," "intend," "may," "might," "outlook," "plan," "project," "projection," "predict," "prospect," "potential," "roadmap," "seek," "should," "target," "will," and "would," or the negative versions of those words or other 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, including the economic impact of the COVID-19 pandemic (including any variant of the COVID-19 virus) on the Company's business; the Company's assets; business; cash flows; financial condition; liquidity; prospects; results of operations; deposit and customer repo growth; interest and fee-based revenue; capital resources; capital metrics; efficiency ratio; valuation of mortgage servicing rights; net income; net interest revenue; non-interest revenue; net interest margin; interest expense; non-interest expense; earnings per share; interest rate sensitivity; interest rate risk; balance sheet and liquidity management; off-balance sheet arrangements; fair value determinations; asset quality; credit quality; credit losses; provision and allowance for credit losses, impairments, charge-offs, recoveries and changes in loan volumes; investment securities portfolio yields and values; ability to manage the impact of pandemics, natural disasters and other force majeure events; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on the Company's financial results and the Company's financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends; ability to pay dividends or coupons on the Company's
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 historical facts, 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. These risks, uncertainties and other factors include, without limitation, potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and liabilities; the impact of inflation on consumers; 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; the availability of and access to capital; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans; the ability to grow additional interest and fee income or to control noninterest expense; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Company's net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions; the enforcement efforts of federal and state bank regulators; possible adverse rulings, judgments, settlements and other outcomes of pending, ongoing and future litigation and governmental, administrative and investigatory matters; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of 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; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic, and the effect of actions taken to mitigate the impact of the COVID-19 pandemic on the Company, the Company's employees, the Company's customers, the global economy and the financial markets; international or political instability including the impacts related to or resulting from Russia's military inaction in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments; impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; adoption of new accounting standards, or changes in existing standards; the outcome of any legal proceedings that may be instituted against the Company or Cadence in respect of the Cadence Merger; the ability of the Company and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the Cadence Merger; the risk that any announcements relating to the Cadence Merger could have adverse effects on the market price of the capital stock of the combined company; the possibility that the anticipated benefits of the Cadence Merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the combined company does business; the possibility that the Cadence Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the Cadence Merger within the expected timeframes or at all and to successfully integrate Cadence's operations and those of the Company; such integration may be more difficult, time consuming or costly than expected; revenues following the Cadence Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Cadence Merger; the combined company's success in executing its business plans and strategies and managing the risks involved in the foregoing; the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the Cadence Merger and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports and other filings the Company files with the FDIC.
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, 2021 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, whether as a result of new information, future developments or otherwise, except as required by applicable law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Cadence Bank | |||||||
Selected Financial Information | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | |||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||
Earnings Summary: | |||||||
Interest revenue | $ 331,930 | $ 290,626 | $ 199,511 | $ 199,129 | $ 192,783 | ||
Interest expense | 20,108 | 19,414 | 17,967 | 18,947 | 19,994 | ||
Net interest revenue | 311,822 | 271,212 | 181,544 | 180,182 | 172,789 | ||
Provision (release) for credit losses | - | 133,562 | (7,000) | 11,500 | - | ||
Net interest revenue, after provision | |||||||
for credit losses | 311,822 | 137,650 | 188,544 | 168,682 | 172,789 | ||
Noninterest revenue | 128,435 | 103,854 | 84,420 | 101,943 | 87,936 | ||
Noninterest expense | 291,667 | 289,194 | 179,889 | 173,984 | 155,823 | ||
Income (loss) before income taxes | 148,590 | (47,690) | 93,075 | 96,641 | 104,902 | ||
Income tax expense (benefit) | 33,643 | (13,033) | 20,350 | 21,102 | 23,347 | ||
Net income (loss) | $ 114,947 | $ (34,657) | $ 72,725 | $ 75,539 | $ 81,555 | ||
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | ||
Net income (loss) available to common shareholders | $ 112,575 | $ (37,029) | $ 70,353 | $ 73,167 | $ 79,183 | ||
Balance Sheet - Period End Balances | |||||||
Total assets | $ 47,204,061 | $ 47,669,751 | $ 28,060,496 | $ 27,612,365 | $ 25,802,497 | ||
Total earning assets | 42,744,225 | 43,503,089 | 25,572,354 | 25,129,873 | 23,542,657 | ||
Total securities | 14,371,606 | 15,606,470 | 10,053,372 | 9,084,111 | 7,640,268 | ||
Loans and leases, net of unearned income | 27,189,666 | 26,882,988 | 14,991,245 | 15,004,039 | 15,038,808 | ||
Allowance for credit losses (ACL) | 438,738 | 446,415 | 260,276 | 265,720 | 241,117 | ||
Net book value of acquired loans (included in | |||||||
loans and leases above) | 11,020,251 | 11,968,278 | 1,426,266 | 1,646,031 | 1,023,252 | ||
Paycheck protection program (PPP) loans | |||||||
(included in loans and leases above) | 27,013 | 50,008 | 32,771 | 167,144 | 1,146,000 | ||
Unamortized net discount on acquired loans | 72,620 | 77,711 | 9,863 | 13,037 | 10,069 | ||
Total deposits | 40,568,055 | 39,817,673 | 23,538,711 | 22,838,486 | 21,173,186 | ||
Total deposits and securities sold under | |||||||
agreement to repurchase | 41,271,615 | 40,504,861 | 24,243,834 | 23,521,621 | 21,833,671 | ||
Long-term debt | 2,514 | 3,742 | 4,082 | 4,189 | 4,295 | ||
Subordinated debt | 463,181 | 478,669 | 307,776 | 307,601 | 297,425 | ||
Total shareholders' equity | 4,643,757 | 5,247,987 | 3,023,257 | 3,069,574 | 2,825,198 | ||
Common shareholders' equity | 4,476,764 | 5,080,994 | 2,856,264 | 2,902,581 | 2,658,205 | ||
Balance Sheet - Average Balances | |||||||
Total assets | $ 47,679,850 | $ 40,990,459 | $ 27,616,585 | $ 26,666,296 | $ 24,545,560 | ||
Total earning assets | 43,515,166 | 37,210,403 | 25,220,602 | 24,211,759 | 22,346,075 | ||
Total securities | 15,070,524 | 12,954,547 | 9,539,814 | 8,067,109 | 6,606,027 | ||
Loans and leases, net of unearned income | 27,106,733 | 22,745,093 | 14,915,728 | 15,470,539 | 15,029,076 | ||
PPP loans (included in loans and leases above) | 36,621 | 48,206 | 73,783 | 973,036 | 1,062,423 | ||
Total deposits | 40,565,103 | 34,759,687 | 23,162,450 | 22,385,883 | 20,472,080 | ||
Total deposits and securities sold under | |||||||
agreement to repurchase | 41,259,136 | 35,479,807 | 23,914,986 | 23,092,969 | 21,123,774 | ||
Long-term debt | 3,361 | 3,844 | 4,168 | 4,714 | 4,378 | ||
Subordinated debt | 463,481 | 432,267 | 307,671 | 304,056 | 297,318 | ||
Total shareholders' equity | 5,062,231 | 4,508,594 | 3,058,307 | 2,954,834 | 2,813,001 | ||
Common shareholders' equity | 4,895,238 | 4,341,601 | 2,891,314 | 2,787,841 | 2,646,008 | ||
Nonperforming Assets: | |||||||
Nonaccrual loans and leases | $ 91,031 | $ 122,104 | $ 59,622 | $ 61,664 | $ 73,142 | ||
Loans and leases 90+ days past due, | |||||||
still accruing | 20,957 | 24,784 | 17,012 | 15,386 | 21,208 | ||
Restructured loans and leases, still accruing | 7,292 | 6,903 | 7,165 | 7,368 | 6,971 | ||
Non-performing loans (NPLs) | 119,280 | 153,791 | 83,799 | 84,418 | 101,321 | ||
Other real estate owned and other repossessed | |||||||
assets | 28,401 | 33,021 | 16,515 | 17,333 | 9,351 | ||
Non-performing assets (NPAs) | $ 147,681 | $ 186,812 | $ 100,314 | $ 101,751 | $ 110,672 | ||
Cadence Bank | |||||||
Selected Financial Information | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | |||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||
Financial Ratios and Other Data: | |||||||
Return on average assets | ( | ||||||
Adjusted return on average assets* | 1.05 | 1.03 | 1.11 | 1.38 | 1.37 | ||
Return on average common shareholders' equity | 9.33 | (3.38) | 9.65 | 10.53 | 12.14 | ||
Adjusted return on average common shareholders' equity* | 10.07 | 9.51 | 10.28 | 12.83 | 12.32 | ||
Return on average tangible common equity* | 13.87 | (4.71) | 14.85 | 16.08 | 18.46 | ||
Adjusted return on average tangible common equity* | 14.98 | 13.24 | 15.80 | 19.61 | 18.74 | ||
Pre-tax pre-provision net revenue to total average assets* | 1.26 | 0.83 | 1.24 | 1.63 | 1.73 | ||
Adjusted pre-tax pre-provision net revenue to total | |||||||
average assets* | 1.36 | 1.32 | 1.32 | 1.77 | 1.76 | ||
Net interest margin-fully taxable equivalent | 2.92 | 2.90 | 2.86 | 2.99 | 3.15 | ||
Net interest rate spread-fully taxable equivalent | 2.81 | 2.78 | 2.72 | 2.83 | 2.97 | ||
Efficiency ratio* | 66.10 | 76.94 | 67.52 | 61.55 | 59.64 | ||
Adjusted efficiency ratio* | 63.52 | 63.54 | 65.28 | 58.04 | 59.02 | ||
Loan/deposit ratio | |||||||
Employee FTE | 6,568 | 6,595 | 4,770 | 4,835 | 4,546 | ||
Credit Quality Ratios: | |||||||
Net (recoveries) charge-offs to average loans and leases (1) | ( | ( | ( | ( | |||
Provision for credit losses to average loans and leases (1) | 0.00 | 2.33 | (0.19) | 0.30 | 0.00 | ||
ACL to net loans and leases | 1.61 | 1.66 | 1.74 | 1.77 | 1.60 | ||
ACL to non-performing loans and leases | 367.82 | 290.27 | 310.60 | 314.77 | 237.97 | ||
ACL to non-performing assets | 297.08 | 238.96 | 259.46 | 261.15 | 217.87 | ||
Non-performing loans and leases to net loans and leases | 0.44 | 0.57 | 0.56 | 0.56 | 0.67 | ||
Non-performing assets to total assets | 0.31 | 0.39 | 0.36 | 0.37 | 0.43 | ||
Equity Ratios: | |||||||
Total shareholders' equity to total assets | |||||||
Total common shareholders' equity to total assets | 9.48 | 10.66 | 10.18 | 10.51 | 10.30 | ||
Tangible common shareholders' equity to tangible assets* | 6.31 | 7.54 | 6.82 | 7.11 | 7.04 | ||
Capital Adequacy: | |||||||
Common Equity Tier 1 capital (2) | |||||||
Tier 1 capital (2) | 11.05 | 11.61 | 11.63 | 11.80 | 11.95 | ||
Total capital (2) | 13.27 | 13.86 | 14.27 | 14.50 | 14.65 | ||
Tier 1 leverage capital (2) | 8.24 | 9.90 | 8.13 | 8.25 | 8.59 | ||
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22, 23, and 24. | |||||||
(1) Annualized | |||||||
(2) Current quarter regulatory capital ratios are estimated. | |||||||
Cadence Bank | |||||||
Selected Financial Information | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | |||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||
Common Share Data: | |||||||
Diluted earnings (loss) per share | $ 0.60 | $ (0.22) | $ 0.65 | $ 0.69 | $ 0.77 | ||
Adjusted earnings per share* | 0.65 | 0.63 | 0.69 | 0.84 | 0.78 | ||
Cash dividends per share | 0.22 | 0.20 | 0.20 | 0.19 | 0.19 | ||
Book value per share | 24.40 | 26.98 | 26.73 | 26.72 | 25.90 | ||
Tangible book value per share* | 15.67 | 18.45 | 17.27 | 17.41 | 17.08 | ||
Market value per share (last) | 29.26 | 29.79 | 29.78 | 28.33 | 32.48 | ||
Market value per share (high) | 34.24 | 32.12 | 30.55 | 33.18 | 35.59 | ||
Market value per share (low) | 27.95 | 27.25 | 24.87 | 27.59 | 26.95 | ||
Market value per share (avg) | 31.20 | 30.20 | 27.89 | 30.33 | 30.85 | ||
Dividend payout ratio | NM | ||||||
Adjusted dividend payout ratio* | |||||||
Total shares outstanding | 183,488,844 | 188,337,658 | 106,853,316 | 108,614,595 | 102,624,818 | ||
Average shares outstanding - diluted | 187,264,335 | 164,720,656 | 108,250,102 | 105,838,056 | 102,711,584 | ||
Yield/Rate: | |||||||
(Taxable equivalent basis) | |||||||
Loans, loans held for sale, and leases | |||||||
Loans, loans held for sale, and leases excluding net | |||||||
accretion on acquired loans and leases | 3.96 | 4.06 | 4.38 | 4.35 | 4.43 | ||
Available-for-sale securities: | |||||||
Taxable | 1.26 | 1.17 | 1.20 | 1.21 | 1.32 | ||
Tax-exempt | 2.57 | 2.54 | 2.88 | 2.77 | 3.52 | ||
Short-term, FHLB and other equity investments | 0.24 | 0.25 | 0.20 | 0.16 | 0.11 | ||
Total interest earning assets and revenue | 3.10 | 3.11 | 3.15 | 3.31 | 3.51 | ||
Deposits | 0.15 | 0.17 | 0.24 | 0.27 | 0.33 | ||
Demand - interest bearing | 0.20 | 0.21 | 0.31 | 0.34 | 0.40 | ||
Savings | 0.06 | 0.14 | 0.09 | 0.09 | 0.11 | ||
Time | 0.52 | 0.58 | 0.91 | 1.00 | 1.14 | ||
Total interest bearing deposits | 0.23 | 0.26 | 0.36 | 0.41 | 0.48 | ||
Short-term borrowings | 0.11 | 0.11 | 0.10 | 0.12 | 0.13 | ||
Total interest bearing deposits and short-term | |||||||
borrowings | 0.22 | 0.25 | 0.35 | 0.40 | 0.46 | ||
Subordinated debt | 4.17 | 3.95 | 4.47 | 4.47 | 4.46 | ||
Long-term debt | 5.76 | 3.79 | 4.81 | 4.46 | 4.88 | ||
Total interest bearing liabilities and expense | 0.29 | 0.32 | 0.43 | 0.47 | 0.54 | ||
Interest bearing liabilities to interest earning assets | |||||||
Net interest income tax equivalent adjustment | $ 1,027 | $ 824 | $ 446 | $ 550 | $ 569 | ||
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22, 23, and 24. | |||||||
NM = Not meaningful | |||||||
Cadence Bank | |||||
Consolidated Balance Sheets | |||||
(Unaudited) | |||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 781,310 | $ 656,132 | $ 301,246 | $ 331,873 | $ 263,289 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 880,742 | 638,547 | 150,778 | 629,390 | 336,253 |
Available-for-sale securities, at fair value | 14,371,606 | 15,606,470 | 10,053,372 | 9,084,111 | 7,640,268 |
Loans and leases, net of unearned income | 27,189,666 | 26,882,988 | 14,991,245 | 15,004,039 | 15,038,808 |
Allowance for credit losses | 438,738 | 446,415 | 260,276 | 265,720 | 241,117 |
Net loans and leases | 26,750,928 | 26,436,573 | 14,730,969 | 14,738,319 | 14,797,691 |
Loans held for sale | 302,211 | 340,175 | 342,871 | 403,046 | 518,352 |
Premises and equipment, net | 781,209 | 786,426 | 533,999 | 533,276 | 508,508 |
Goodwill | 1,409,038 | 1,407,948 | 958,304 | 957,474 | 851,612 |
Other identifiable intangibles | 191,642 | 198,271 | 52,235 | 54,659 | 53,581 |
Bank owned life insurance | 599,346 | 597,953 | 359,740 | 355,660 | 335,707 |
Other assets | 1,136,029 | 1,001,256 | 576,982 | 524,557 | 497,236 |
Total Assets | |||||
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 7,700,216 | $ 7,619,308 | $ 6,990,880 | ||
Interest bearing | 18,854,543 | 18,727,588 | 10,285,371 | 9,671,662 | 9,067,373 |
Savings | 3,713,629 | 3,556,079 | 3,054,756 | 2,939,958 | 2,678,276 |
Time deposits | 3,541,320 | 3,899,501 | 2,498,368 | 2,607,558 | 2,436,657 |
Total deposits | 40,568,055 | 39,817,673 | 23,538,711 | 22,838,486 | 21,173,186 |
Securities sold under agreement to repurchase | 703,560 | 687,188 | 705,123 | 683,135 | 660,485 |
Federal funds purchased | |||||
and other short-term borrowings | - | 595,000 | - | - | - |
Subordinated debt | 463,181 | 478,669 | 307,776 | 307,601 | 297,425 |
Long-term debt | 2,514 | 3,742 | 4,082 | 4,189 | 4,295 |
Other liabilities | 822,994 | 839,492 | 481,547 | 709,380 | 841,908 |
Total Liabilities | 42,560,304 | 42,421,764 | 25,037,239 | 24,542,791 | 22,977,299 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 458,722 | 470,844 | 267,133 | 271,536 | 256,562 |
Capital surplus | 2,701,371 | 2,841,998 | 688,637 | 730,294 | 563,481 |
Accumulated other comprehensive loss | (664,000) | (139,369) | (82,627) | (34,575) | (43,459) |
Retained earnings | 1,980,671 | 1,907,521 | 1,983,121 | 1,935,326 | 1,881,621 |
Total Shareholders' Equity | 4,643,757 | 5,247,987 | 3,023,257 | 3,069,574 | 2,825,198 |
Total Liabilities & Shareholders' Equity | |||||
Cadence Bank | |||||
Consolidated Average Balance Sheets | |||||
(Unaudited) | |||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 656,630 | $ 792,315 | $ 288,199 | $ 365,647 | $ 261,519 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 1,161,262 | 1,253,722 | 495,982 | 302,845 | 412,313 |
Available-for-sale securities, at fair value | 15,070,524 | 12,954,547 | 9,539,814 | 8,067,109 | 6,606,027 |
Loans and leases, net of unearned income | 27,106,733 | 22,745,093 | 14,915,728 | 15,470,539 | 15,029,076 |
Allowance for credit losses | 444,294 | 404,578 | 264,067 | 245,095 | 242,935 |
Net loans and leases | 26,662,439 | 22,340,515 | 14,651,661 | 15,225,444 | 14,786,141 |
Loans held for sale | 176,647 | 220,766 | 242,422 | 361,999 | 289,755 |
Premises and equipment, net | 785,005 | 690,031 | 534,071 | 526,960 | 508,551 |
Goodwill | 1,407,973 | 1,115,502 | 957,899 | 910,448 | 851,612 |
Other identifiable intangibles | 195,606 | 106,559 | 53,567 | 52,564 | 54,876 |
Bank owned life insurance | 598,822 | 517,511 | 357,429 | 348,378 | 333,837 |
Other assets | 964,942 | 998,991 | 495,541 | 504,902 | 440,929 |
Total Assets | |||||
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 7,579,513 | $ 7,367,832 | $ 6,484,703 | ||
Interest bearing | 19,401,019 | 15,811,268 | 10,027,346 | 9,598,550 | 8,956,420 |
Savings | 3,631,699 | 3,374,243 | 3,001,406 | 2,851,113 | 2,550,095 |
Time deposits | 3,725,794 | 3,526,539 | 2,554,185 | 2,568,388 | 2,480,862 |
Total deposits | 40,565,103 | 34,759,687 | 23,162,450 | 22,385,883 | 20,472,080 |
Securities sold under agreement to repurchase | 694,033 | 720,120 | 752,536 | 707,086 | 651,694 |
Federal funds purchased | |||||
and other short-term borrowings | 131,556 | 7,554 | 8,706 | 3,901 | 1,500 |
Subordinated debt | 463,481 | 432,267 | 307,671 | 304,056 | 297,318 |
Long-term debt | 3,361 | 3,844 | 4,168 | 4,714 | 4,378 |
Other liabilities | 760,085 | 558,393 | 322,747 | 305,822 | 305,589 |
Total Liabilities | 42,617,619 | 36,481,865 | 24,558,278 | 23,711,462 | 21,732,559 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 465,458 | 404,522 | 270,098 | 266,676 | 256,536 |
Capital surplus | 2,779,746 | 2,139,357 | 717,022 | 674,949 | 563,529 |
Accumulated other comprehensive loss | (283,417) | (103,554) | (35,408) | (30,614) | (5,090) |
Retained earnings | 1,933,451 | 1,901,276 | 1,939,602 | 1,876,830 | 1,831,033 |
Total Shareholders' Equity | 5,062,231 | 4,508,594 | 3,058,307 | 2,954,834 | 2,813,001 |
Total Liabilities & Shareholders' Equity | |||||
Cadence Bank | |||||||||
Consolidated Condensed Statements of Income (Loss) | |||||||||
(Dollars in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||||
INTEREST REVENUE: | |||||||||
Loans and leases | $ 282,266 | $ 249,614 | $ 168,066 | $ 171,305 | $ 169,195 | ||||
Available-for-sale securities: | |||||||||
Taxable | 45,155 | 37,258 | 28,617 | 23,983 | 21,192 | ||||
Tax-exempt | 2,414 | 1,608 | 490 | 676 | 687 | ||||
Loans held for sale | 1,407 | 1,324 | 2,076 | 3,040 | 1,595 | ||||
Other | 688 | 822 | 262 | 125 | 114 | ||||
Total interest revenue | 331,930 | 290,626 | 199,511 | 199,129 | 192,783 | ||||
INTEREST EXPENSE: | |||||||||
Interest bearing demand and money | |||||||||
market accounts | 9,742 | 8,485 | 7,723 | 8,247 | 8,796 | ||||
Savings | 568 | 1,203 | 672 | 626 | 700 | ||||
Time | 4,764 | 5,139 | 5,861 | 6,428 | 6,966 | ||||
Federal funds purchased and securities sold | |||||||||
under agreement to repurchase | 216 | 200 | 204 | 206 | 203 | ||||
Short-term and long-term debt | 54 | 37 | 42 | 44 | 45 | ||||
Subordinated debt | 4,764 | 4,350 | 3,463 | 3,387 | 3,269 | ||||
Other | - | - | 2 | 9 | 15 | ||||
Total interest expense | 20,108 | 19,414 | 17,967 | 18,947 | 19,994 | ||||
Net interest revenue | 311,822 | 271,212 | 181,544 | 180,182 | 172,789 | ||||
Provision (release) for credit losses | - | 133,562 | (7,000) | 11,500 | - | ||||
Net interest revenue, after provision for | |||||||||
credit losses | 311,822 | 137,650 | 188,544 | 168,682 | 172,789 | ||||
NONINTEREST REVENUE: | |||||||||
Mortgage banking | 21,763 | 10,580 | 13,058 | 9,105 | 25,310 | ||||
Credit card, debit card and merchant fees | 11,321 | 12,016 | 10,692 | 10,874 | 9,053 | ||||
Deposit service charges | 19,898 | 17,680 | 11,580 | 10,069 | 9,586 | ||||
Security (losses) gains, net | (1,097) | (378) | (195) | 96 | 82 | ||||
Insurance commissions | 35,727 | 32,637 | 35,773 | 36,106 | 30,667 | ||||
Wealth management | 21,737 | 16,352 | 7,147 | 7,543 | 8,465 | ||||
Gain on sale of PPP loans | - | - | - | 21,572 | - | ||||
Other | 19,086 | 14,967 | 6,365 | 6,578 | 4,773 | ||||
Total noninterest revenue | 128,435 | 103,854 | 84,420 | 101,943 | 87,936 | ||||
NONINTEREST EXPENSE: | |||||||||
Salaries and employee benefits | 187,819 | 149,599 | 112,968 | 108,188 | 101,060 | ||||
Occupancy and equipment | 28,270 | 26,885 | 18,977 | 18,154 | 17,378 | ||||
Data processing and software | 27,483 | 24,838 | 16,799 | 15,911 | 15,537 | ||||
Merger expense | 3,974 | 44,843 | 3,442 | 9,962 | 1,649 | ||||
Deposit insurance assessments | 3,336 | 3,278 | 2,330 | 1,638 | 1,455 | ||||
Pension settlement expense | - | 651 | 2,400 | - | - | ||||
Other | 40,785 | 39,100 | 22,973 | 20,131 | 18,744 | ||||
Total noninterest expense | 291,667 | 289,194 | 179,889 | 173,984 | 155,823 | ||||
Income (loss) before income taxes | 148,590 | (47,690) | 93,075 | 96,641 | 104,902 | ||||
Income tax expense (benefit) | 33,643 | (13,033) | 20,350 | 21,102 | 23,347 | ||||
Net income (loss) | $ 114,947 | $ (34,657) | $ 72,725 | $ 75,539 | $ 81,555 | ||||
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | ||||
Net income (loss) available to common | |||||||||
shareholders | $ 112,575 | $ (37,029) | $ 70,353 | $ 73,167 | $ 79,183 | ||||
Net income (loss) per common share: Diluted | $ 0.60 | $ (0.22) | $ 0.65 | $ 0.69 | $ 0.77 | ||||
Cadence Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||||
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Non-real estate | $ 8,017,958 | $ 7,847,473 | $ 2,210,287 | $ 2,271,370 | $ 3,102,082 | ||||
Owner occupied | 3,703,914 | 3,567,746 | 2,611,777 | 2,623,500 | 2,598,166 | ||||
Total commercial and industrial | 11,721,872 | 11,415,219 | 4,822,064 | 4,894,870 | 5,700,248 | ||||
Commercial real estate | |||||||||
Construction, acquisition and development | 3,028,514 | 2,924,343 | 1,797,559 | 1,926,421 | 1,707,800 | ||||
Income producing | 4,795,486 | 4,924,369 | 3,443,967 | 3,323,883 | 3,127,510 | ||||
Total commercial real estate | 7,824,000 | 7,848,712 | 5,241,526 | 5,250,304 | 4,835,310 | ||||
Consumer | |||||||||
Residential mortgages | 7,355,995 | 7,311,306 | 4,698,328 | 4,617,155 | 4,309,000 | ||||
Other consumer | 287,799 | 307,751 | 229,327 | 241,710 | 194,250 | ||||
Total consumer | 7,643,794 | 7,619,057 | 4,927,655 | 4,858,865 | 4,503,250 | ||||
Total loans and leases, net of unearned | $ 27,189,666 | ||||||||
NON-PERFORMING ASSETS | |||||||||
NON-PERFORMING LOANS AND LEASES: | |||||||||
Nonaccrual Loans and Leases | |||||||||
Commercial and industrial | |||||||||
Non-real estate | $ 33,086 | $ 33,690 | $ 13,170 | $ 10,941 | $ 9,724 | ||||
Owner occupied | 11,787 | 22,058 | 13,738 | 13,156 | 17,312 | ||||
Total commercial and industrial | 44,873 | 55,748 | 26,908 | 24,097 | 27,036 | ||||
Commercial real estate | |||||||||
Construction, acquisition and development | 1,618 | 5,568 | 3,292 | 2,582 | 8,494 | ||||
Income producing | 9,688 | 16,086 | 8,403 | 13,483 | 12,838 | ||||
Total commercial real estate | 11,306 | 21,654 | 11,695 | 16,065 | 21,332 | ||||
Consumer | |||||||||
Residential mortgages | 34,278 | 44,180 | 20,821 | 21,218 | 24,382 | ||||
Other consumer | 574 | 522 | 198 | 284 | 392 | ||||
Total consumer | 34,852 | 44,702 | 21,019 | 21,502 | 24,774 | ||||
Total nonaccrual loans and leases | $ 91,031 | $ 122,104 | $ 59,622 | $ 61,664 | $ 73,142 | ||||
Loans and Leases 90+ Days Past Due, Still | |||||||||
Accruing: | 20,957 | 24,784 | 17,012 | 15,386 | 21,208 | ||||
Restructured Loans and Leases, Still Accruing | 7,292 | 6,903 | 7,165 | 7,368 | 6,971 | ||||
Total non-performing loans and leases | $ 119,280 | $ 153,791 | $ 83,799 | $ 84,418 | $ 101,321 | ||||
OTHER REAL ESTATE OWNED AND | |||||||||
OTHER REPOSSESSED ASSETS | 28,401 | 33,021 | 16,515 | 17,333 | 9,351 | ||||
Total Non-performing Assets | $ 147,681 | $ 186,812 | $ 100,314 | $ 101,751 | $ 110,672 | ||||
Additions to Nonaccrual Loans and Leases | |||||||||
During the Quarter (excluding acquisitions) | $ 16,374 | $ 22,158 | $ 19,858 | $ 16,005 | $ 10,029 | ||||
Cadence Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||
Balance, beginning of period | $ 446,415 | $ 260,276 | $ 265,720 | $ 241,117 | $ 244,422 | ||||
Loans and leases charged-off: | |||||||||
Commercial and industrial | (2,682) | (2,712) | (1,488) | (1,882) | (3,043) | ||||
Commercial real estate | (313) | (586) | (131) | (623) | (1,285) | ||||
Consumer | (1,792) | (2,342) | (1,694) | (1,357) | (1,578) | ||||
Total loans charged-off | (4,787) | (5,640) | (3,313) | (3,862) | (5,906) | ||||
Recoveries: | |||||||||
Commercial and industrial | 3,178 | 7,835 | 3,787 | 3,061 | 1,211 | ||||
Commercial real estate | 437 | 1,047 | 646 | 1,291 | 109 | ||||
Consumer | 1,612 | 1,521 | 936 | 1,310 | 1,281 | ||||
Total recoveries | 5,227 | 10,403 | 5,369 | 5,662 | 2,601 | ||||
Net recoveries (charge-offs) | 440 | 4,763 | 2,056 | 1,800 | (3,305) | ||||
Initial allowance on loans purchased with | |||||||||
credit deterioration | (8,117) | 62,321 | - | 12,803 | - | ||||
Provision: | |||||||||
Loans and leases acquired during the quarter | - | 119,055 | - | 11,500 | - | ||||
Provision (release) for credit losses related to loans | |||||||||
and leases | - | - | (7,500) | (1,500) | - | ||||
Total provision for loans and leases | - | 119,055 | (7,500) | 10,000 | - | ||||
Balance, end of period | $ 438,738 | $ 446,415 | $ 260,276 | $ 265,720 | $ 241,117 | ||||
Average loans and leases, net of unearned, for period | |||||||||
Ratio: Net (recoveries) charge-offs to average loans | |||||||||
and leases (annualized) | ( | ( | ( | ( | |||||
RESERVE FOR UNFUNDED COMMITMENTS** | |||||||||
Balance, beginning of period | $ 23,551 | $ 9,044 | $ 8,544 | $ 7,044 | $ 7,044 | ||||
Provision for unfunded commitments for loans | |||||||||
acquired during the quarter | - | 13,007 | - | - | - | ||||
Provision for credit losses for unfunded commitments | - | 1,500 | 500 | 1,500 | - | ||||
Balance, end of period | $ 23,551 | $ 23,551 | $ 9,044 | $ 8,544 | $ 7,044 | ||||
**The Reserve for Unfunded Commitments is classified in other liabilities on the balance sheet. | |||||||||
Cadence Bank | |||||||
Selected Loan Data | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
March 31, 2022 | |||||||
Purchased | |||||||
Credit | |||||||
Special | Deteriorated | ||||||
Pass | Mention | Substandard | Doubtful | Impaired | (Loss) | Total | |
LOAN PORTFOLIO BY | |||||||
INTERNALLY ASSIGNED GRADE: | |||||||
Commercial and industrial | |||||||
Non-real estate | $ 7,854,480 | $ 98,308 | $ - | $ 4,771 | $ 21,283 | $ 8,017,958 | |
Owner occupied | 3,647,785 | 3,304 | 43,866 | - | 4,064 | 4,895 | 3,703,914 |
Total commercial and industrial | 11,502,265 | 42,420 | 142,174 | - | 8,835 | 26,178 | 11,721,872 |
Commercial real estate | |||||||
Construction, acquisition and | |||||||
development | 2,995,751 | 245 | 27,980 | - | - | 4,538 | 3,028,514 |
Income producing | 4,642,592 | 11,416 | 114,805 | - | 703 | 25,970 | 4,795,486 |
Total commercial real estate | 7,638,343 | 11,661 | 142,785 | - | 703 | 30,508 | 7,824,000 |
Consumer | |||||||
Residential mortgages | 7,237,022 | 703 | 116,098 | - | 598 | 1,574 | 7,355,995 |
Other consumer | 281,580 | - | 6,219 | - | - | - | 287,799 |
Total consumer | 7,518,602 | 703 | 122,317 | - | 598 | 1,574 | 7,643,794 |
Total loans and leases, net of unearned | $ 407,276 | $ - | $ 10,136 | $ 58,260 | |||
December 31, 2021 | |||||||
Purchased | |||||||
Credit | |||||||
Special | Deteriorated | ||||||
Pass | Mention | Substandard | Doubtful | Impaired | (Loss) | Total | |
LOAN PORTFOLIO BY | |||||||
INTERNALLY ASSIGNED GRADE: | |||||||
Commercial and industrial | |||||||
Non-real estate | $ 7,655,502 | $ 103,134 | $ 153 | $ 5,350 | $ 40,325 | $ 7,847,473 | |
Owner occupied | 3,484,116 | 3,440 | 55,247 | - | 11,229 | 13,714 | 3,567,746 |
Total commercial and industrial | 11,139,618 | 46,449 | 158,381 | 153 | 16,579 | 54,039 | 11,415,219 |
Commercial real estate | |||||||
Construction, acquisition and | |||||||
development | 2,884,673 | 441 | 31,263 | - | 3,765 | 4,201 | 2,924,343 |
Income producing | 4,686,699 | 28,964 | 174,936 | - | 3,810 | 29,960 | 4,924,369 |
Total commercial real estate | 7,571,372 | 29,405 | 206,199 | - | 7,575 | 34,161 | 7,848,712 |
Consumer | |||||||
Residential mortgages | 7,196,106 | 990 | 110,429 | 2,560 | 1,047 | 174 | 7,311,306 |
Other consumer | 300,175 | - | 7,381 | 137 | - | 58 | 307,751 |
Total consumer | 7,496,281 | 990 | 117,810 | 2,697 | 1,047 | 232 | 7,619,057 |
Total loans | $ 482,390 | $ 25,201 | $ 88,432 | ||||
Cadence Bank | |||||||||
Geographical Information | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
March 31, 2022 | |||||||||
Alabama | Tennessee | ||||||||
and | and | ||||||||
Florida | Arkansas | Louisiana | Mississippi | Missouri | Georgia | Texas | Other | Total | |
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Non-real estate | $ 784,707 | $ 146,113 | $ 306,171 | $ 508,051 | $ 83,869 | $ 762,174 | $ 3,612,010 | $ 8,017,958 | |
Owner occupied | 557,251 | 239,155 | 248,063 | 694,639 | 85,746 | 410,240 | 1,348,883 | 119,937 | 3,703,914 |
Total commercial and industrial | 1,341,958 | 385,268 | 554,234 | 1,202,690 | 169,615 | 1,172,414 | 4,960,893 | 1,934,800 | 11,721,872 |
Commercial real estate | |||||||||
Construction, acquisition and | |||||||||
development | 403,428 | 61,095 | 47,905 | 228,402 | 63,309 | 468,720 | 1,457,754 | 297,901 | 3,028,514 |
Income producing | 655,970 | 287,787 | 211,561 | 654,923 | 197,854 | 829,164 | 1,685,775 | 272,452 | 4,795,486 |
Total commercial real estate | 1,059,398 | 348,882 | 259,466 | 883,325 | 261,163 | 1,297,884 | 3,143,529 | 570,353 | 7,824,000 |
Consumer | |||||||||
Residential mortgages | 1,487,109 | 357,669 | 427,427 | 1,028,318 | 151,496 | 870,539 | 2,934,062 | 99,375 | 7,355,995 |
Other consumer | 38,788 | 10,959 | 8,474 | 56,854 | 829 | 22,557 | 65,159 | 84,179 | 287,799 |
Total consumer | 1,525,897 | 368,628 | 435,901 | 1,085,172 | 152,325 | 893,096 | 2,999,221 | 183,554 | 7,643,794 |
Total loans and leases, net of unearned | |||||||||
Loan growth, excluding loans acquired | |||||||||
during the quarter (annualized) | ( | ( | ( | ||||||
Cadence Bank | ||||||||||
Noninterest Revenue and Expense | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Quarter Ended | ||||||||||
Mar-22 | Dec-21 | Sep-21 | Jun-21 | Mar-21 | ||||||
NONINTEREST REVENUE: | ||||||||||
Mortgage banking excl. MSR and MSR Hedge | ||||||||||
market value adjustment | $ 7,733 | $ 7,963 | $ 11,009 | $ 11,013 | $ 17,929 | |||||
MSR and MSR Hedge market value adjustment | 14,030 | 2,617 | 2,049 | (1,908) | 7,381 | |||||
Credit card, debit card and merchant fees | 11,321 | 12,016 | 10,692 | 10,874 | 9,053 | |||||
Deposit service charges | 19,898 | 17,680 | 11,580 | 10,069 | 9,586 | |||||
Securities (losses) gains, net | (1,097) | (378) | (195) | 96 | 82 | |||||
Insurance commissions | 35,727 | 32,637 | 35,773 | 36,106 | 30,667 | |||||
Trust income | 10,061 | 7,892 | 4,735 | 4,434 | 5,129 | |||||
Annuity fees | 604 | 435 | 50 | 50 | 51 | |||||
Brokerage commissions and fees | 11,072 | 8,025 | 2,362 | 3,059 | 3,285 | |||||
Gain on sale of PPP loans | - | - | - | 21,572 | - | |||||
Bank-owned life insurance | 3,336 | 3,098 | 4,217 | 1,845 | 2,020 | |||||
Other miscellaneous income | 15,750 | 11,869 | 2,148 | 4,733 | 2,753 | |||||
Total noninterest revenue | $ 84,420 | $ 87,936 | ||||||||
NONINTEREST EXPENSE: | ||||||||||
Salaries and employee benefits | ||||||||||
Occupancy, net of rental income | 20,346 | 19,477 | 13,443 | 13,187 | 12,814 | |||||
Equipment | 7,924 | 7,408 | 5,534 | 4,967 | 4,564 | |||||
Deposit insurance assessments | 3,336 | 3,278 | 2,330 | 1,638 | 1,455 | |||||
Pension settlement expense | - | 651 | 2,400 | - | - | |||||
Advertising | 2,716 | 2,721 | 988 | 783 | 1,004 | |||||
Foreclosed property expense | 440 | 689 | 2,189 | 649 | 1,021 | |||||
Telecommunications | 1,833 | 1,725 | 1,600 | 1,517 | 1,398 | |||||
Public relations | 1,877 | 2,365 | 1,166 | 1,012 | 741 | |||||
Data processing | 16,824 | 15,606 | 11,297 | 11,024 | 10,424 | |||||
Computer software | 10,659 | 9,232 | 5,502 | 4,887 | 5,113 | |||||
Amortization of intangibles | 6,780 | 5,473 | 2,424 | 2,401 | 2,318 | |||||
Legal | 1,793 | 1,282 | 814 | 774 | 1,166 | |||||
Merger expense | 3,974 | 44,843 | 3,442 | 9,962 | 1,649 | |||||
Postage and shipping | 2,034 | 1,772 | 1,414 | 1,317 | 1,547 | |||||
Other miscellaneous expense | 23,312 | 23,073 | 12,378 | 11,678 | 9,549 | |||||
Total noninterest expense | ||||||||||
INSURANCE COMMISSIONS: | ||||||||||
Property and casualty commissions | $ 25,852 | $ 23,640 | $ 26,413 | $ 26,040 | $ 21,949 | |||||
Life and health commissions | 7,143 | 6,459 | 6,543 | 7,130 | 6,494 | |||||
Risk management income | 757 | 699 | 676 | 611 | 613 | |||||
Other | 1,975 | 1,839 | 2,141 | 2,325 | 1,611 | |||||
Total insurance commissions | $ 35,727 | $ 32,637 | $ 35,773 | $ 36,106 | $ 30,667 | |||||
Cadence Bank | ||||||||||||||||||
Average Balances and Yields | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Loans and leases, excluding accretion | $ 27,106,733 | |||||||||||||||||
Accretion income on acquired loans | 17,741 | 0.27 | 16,426 | 0.29 | 3,779 | 0.10 | ||||||||||||
Loans held for sale | 176,647 | 1,407 | 3.23 | 220,766 | 1,324 | 2.38 | 289,755 | 1,595 | 2.23 | |||||||||
Investment securities | ||||||||||||||||||
Taxable | 14,588,090 | 45,155 | 1.26 | 12,636,302 | 37,258 | 1.17 | 6,505,915 | 21,192 | 1.32 | |||||||||
Tax-exempt | 482,434 | 3,056 | 2.57 | 318,245 | 2,035 | 2.54 | 100,112 | 870 | 3.52 | |||||||||
Total investment securities | 15,070,524 | 48,211 | 1.30 | 12,954,547 | 39,293 | 1.20 | 6,606,027 | 22,062 | 1.35 | |||||||||
Other investments | 1,161,262 | 688 | 0.24 | 1,289,997 | 822 | 0.25 | 421,217 | 114 | 0.11 | |||||||||
Total interest-earning assets | 43,515,166 | 332,957 | 3.10 | 37,210,403 | 291,450 | 3.11 | 22,346,075 | 193,352 | 3.51 | |||||||||
Other assets | 4,608,978 | 4,189,688 | 2,442,420 | |||||||||||||||
Allowance for credit losses | (444,294) | (404,578) | (242,935) | |||||||||||||||
Total assets | $ 47,679,850 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Demand deposits | $ 19,401,019 | $ 9,742 | $ 8,485 | $ 8,956,420 | $ 8,796 | |||||||||||||
Savings deposits | 3,631,699 | 568 | 0.06 | 3,374,243 | 1,203 | 0.14 | 2,550,095 | 700 | 0.11 | |||||||||
Time deposits | 3,725,794 | 4,764 | 0.52 | 3,526,539 | 5,139 | 0.58 | 2,480,862 | 6,966 | 1.14 | |||||||||
Total interest-bearing deposits | 26,758,512 | 15,074 | 0.23 | 22,712,050 | 14,827 | 0.26 | 13,987,377 | 16,462 | 0.48 | |||||||||
Short-term borrowings | 825,589 | 216 | 0.11 | 727,674 | 200 | 0.11 | 653,194 | 203 | 0.13 | |||||||||
Long-term borrowings | 466,842 | 4,818 | 4.19 | 441,165 | 4,387 | 3.95 | 301,696 | 3,329 | 4.48 | |||||||||
Total interest-bearing liabilities | 28,050,943 | 20,108 | 0.29 | 23,880,889 | 19,414 | 0.32 | 14,942,267 | 19,994 | 0.54 | |||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||
Demand deposits | 13,806,591 | 12,047,637 | 6,484,703 | |||||||||||||||
Other liabilities | 760,085 | 558,393 | 305,589 | |||||||||||||||
Total liabilities | 42,617,619 | 36,486,919 | 21,732,559 | |||||||||||||||
Shareholders' equity | 5,062,231 | 4,508,594 | 2,813,001 | |||||||||||||||
Total liabilities and shareholders' equity | $ 47,679,850 | |||||||||||||||||
Net interest income/net interest spread | 312,849 | 272,036 | 173,358 | |||||||||||||||
Net yield on earning assets/net interest margin | ||||||||||||||||||
Taxable equivalent adjustment: | ||||||||||||||||||
Loans and investment securities | (1,027) | (824) | (569) | |||||||||||||||
Net interest revenue | ||||||||||||||||||
Cadence Bank Selected Additional Information (Dollars in thousands) (Unaudited) Quarter Ended Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 MORTGAGE SERVICING RIGHTS (MSR): Fair value, beginning of period $ 69,552 $ 64,684 $ 60,615 $ 60,332 $ 47,571 Additions to mortgage servicing rights: Originations of servicing assets 5,155 5,709 5,798 6,833 5,588 Changes in fair value: Due to payoffs/paydowns (3,147) (3,823) (3,919) (2,946) (3,273) Due to update in valuation assumptions 21,299 2,982 2,190 (3,604) 10,446 Fair value, end of period $ 92,859 $ 69,552 $ 64,684 $ 60,615 $ 60,332 MORTGAGE BANKING REVENUE: Origination $ 5,118 $ 5,970 $ 9,284 $ 8,646 $ 15,955 Servicing 5,762 5,816 5,644 5,313 5,247 Payoffs/Paydowns (3,147) (3,823) (3,919) (2,946) (3,273) Total mortgage banking revenue excluding MSR 7,733 7,963 11,009 11,013 17,929 Market value adjustment on MSR 21,299 2,982 2,190 (3,604) 10,446 Market value adjustment on MSR Hedge (7,269) (365) (141) 1,696 (3,065) Total mortgage banking revenue $ 21,763 $ 10,580 $ 13,058 $ 9,105 $ 25,310 Mortgage loans serviced $ 7,629,119 $ 7,553,917 $ 7,455,113 MSR/mortgage loans serviced AVAILABLE-FOR-SALE SECURITIES, at fair value U.S. Treasury securities $ 1,459,845 $ 1,496,465 $ - $ - $ - Obligations of U.S. government agencies 2,350,810 2,638,442 2,575,564 2,758,412 2,642,646 Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS): Residential pass-through: Guaranteed by GNMA 105,900 113,427 52,625 56,009 56,778 Issued by FNMA and FHLMC 7,604,829 8,129,191 5,773,462 4,653,531 3,381,468 Other residential mortgage-back securities 212,216 243,357 - - - Commercial mortgage-backed securities 1,951,367 2,061,133 1,518,556 1,478,058 1,414,345 Total MBS 9,874,312 10,547,108 7,344,643 6,187,598 4,852,591 Obligations of states and political subdivisions 530,241 565,520 112,152 117,248 126,589 Other domestic debt securities 103,117 63,645 21,013 20,853 18,442 Foreign debt securities 53,281 295,290 - - - Total available-for-sale securities
Cadence Bank Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions (Dollars in thousands, except per share amounts) (Unaudited) Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net revenue, total adjusted expense, tangible common shareholders' equity to tangible assets, return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, adjusted return on average common shareholders' equity, adjusted pre-tax pre-provision net revenue to total average assets, average tangible book value per common share, adjusted earnings per common share, efficiency ratio (tax equivalent) and adjusted efficiency ratio (tax equivalent), adjusted dividend payout ratio. 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. Reconciliation of Net Income to Adjusted Net Income and Adjusted Net income to Adjusted Net Income Available to Common Shareholders:
Quarter Ended Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Net income (loss) $ 114,947 $ 72,725 $ 75,539 $ 81,555 Plus: Merger expense 3,974 44,843 3,442 9,962 1,649 Incremental merger related expense 6,571 4,633 - - - Initial provision for acquired loans - 132,062 - 11,500 - Branch closing expense 128 - - - - Pension settlement expense - 651 2,400 - - Less: Security (losses) gains (1,097) (378) (195) 96 82 Tax adjustment 2,786 41,453 1,506 5,331 391 Adjusted net income $ 123,931 $ 77,256 $ 91,574 $ 82,731 Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 Adjusted net income available to common shareholders $ 121,559 $ 74,884 $ 89,202 $ 80,359
Cadence Bank Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions (Dollars in thousands, except per share amounts) (Unaudited) Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue Quarter Ended Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Net income (loss) $ 114,947 $ 72,725 $ 75,539 $ 81,555 Plus: Provision (release) for credit losses - 133,562 (7,000) 11,500 - Income tax expense (benefit) 33,643 (13,033) 20,350 21,102 23,347 Pre-tax pre-provision net revenue $ 148,590 $ 85,872 $ 86,075 Reconciliation of Net Income to Adjusted Pre-Tax Pre-Provision Net Revenue Net income (loss) $ 114,947 $ 72,725 $ 75,539 $ 81,555 Plus: Provision (release) for credit losses - 133,562 (7,000) 11,500 - Merger expense 3,974 44,843 3,442 9,962 1,649 Incremental merger related expense 6,571 4,633 - - - Branch closing expense 128 - - - - Pension settlement expense - 651 2,400 - - Income tax expense (benefit) 33,643 (13,033) 20,350 21,102 23,347 Less: Security (losses) gains (1,097) (378) (195) 96 82 Adjusted pre-tax pre-provision net revenue $ 160,360 $ 92,112 Reconciliation of Total Noninterest Expense: to Adjusted Total Noninterest Expense Total noninterest expense $ 291,667 Less: Merger expense 3,974 44,843 3,442 9,962 1,649 Incremental merger related expense 6,571 4,633 - - - Branch closing expense 128 - - - - Pension settlement expense - 651 2,400 - - Total adjusted expense $ 280,994
Cadence Bank Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions (Dollars in thousands, except per share amounts) (Unaudited) Reconciliation of Total Assets to Total Tangible Assets and Tangible Shareholders' Equity to Tangible Common Shareholders' Equity: Quarter Ended Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Tangible assets Total assets $ 47,204,061 $ 47,669,751 $ 28,060,496 $ 27,612,365 $ 25,802,497 Less: Goodwill 1,409,038 1,407,948 958,304 957,474 851,612 Other identifiable intangible assets 191,642 198,271 52,235 54,659 53,581 Total tangible assets $ 45,603,381 $ 46,063,532 $ 27,049,957 $ 26,600,232 $ 24,897,304 PERIOD END BALANCES: Tangible shareholders' equity Total shareholders' equity $ 4,643,757 $ 5,247,987 $ 3,023,257 $ 3,069,574 $ 2,825,198 Less: Goodwill 1,409,038 1,407,948 958,304 957,474 851,612 Other identifiable intangible assets 191,642 198,271 52,235 54,659 53,581 Preferred stock 166,993 166,993 166,993 166,993 166,993 Total tangible common shareholders' equity $ 2,876,084 $ 3,474,775 $ 1,845,725 $ 1,890,448 $ 1,753,012 AVERAGE BALANCES: Tangible shareholders' equity Total shareholders' equity $ 5,062,231 $ 4,508,594 $ 3,058,307 $ 2,954,834 $ 2,813,001 Less: Goodwill 1,407,973 1,115,502 957,899 910,448 851,612 Other identifiable intangible assets 195,606 106,559 53,567 52,564 54,876 Preferred stock 166,993 166,993 166,993 166,993 166,993 Total tangible common shareholders' equity $ 3,291,659 $ 3,119,540 $ 1,879,848 $ 1,824,829 $ 1,739,520 Total average assets $ 47,679,850 $ 40,990,459 $ 27,616,585 $ 26,666,296 $ 24,545,560 Total shares of common stock outstanding 183,488,844 188,337,658 106,853,316 108,614,595 102,624,818 Average shares outstanding-diluted 187,264,335 164,720,656 108,250,102 105,838,056 102,711,584 Tangible common shareholders' equity to tangible assets (1) Return on average tangible common equity (2) 13.87 (4.71) 14.85 16.08 18.46 Adjusted return on average tangible common equity (3) 14.98 13.24 15.80 19.61 18.74 Adjusted return on average assets (4) 1.05 1.03 1.11 1.38 1.37 Adjusted return on average common shareholders' equity (5) 10.07 9.51 10.28 12.83 12.32 Pre-tax pre-provision net revenue to total average assets (6) 1.26 0.83 1.24 1.63 1.73 Adjusted pre-tax pre-provision net revenue to total average assets (7) 1.36 1.32 1.32 1.77 1.76 Tangible book value per common share (8) $ 15.67 $ 18.45 $ 17.27 $ 17.41 $ 17.08 Adjusted earnings per common share (9) $ 0.65 $ 0.63 $ 0.69 $ 0.84 $ 0.78 Adjusted dividend payout ratio (10)
(1) Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible (2) Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders' equity. (3) Adjusted return on average tangible common equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average tangible common shareholders' equity. (4) Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets. (5) Adjusted return on average common shareholders' equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average common shareholders' equity. (6) Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets. (7) Adjusted pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of net adjusted income. (8) Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. (9) Adjusted earnings per common share is defined by the Company as net adjusted income available to common shareholders divided by average common shares outstanding-diluted. (10) Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders. Efficiency Ratio and Adjusted Efficiency Ratio 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. The adjusted efficiency ratio excludes expense items otherwise disclosed as non-operating from total noninterest expense.
assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cadence-bank-announces-first-quarter-2022-financial-results-301532307.html
SOURCE Cadence Bank
FAQ
What were Cadence Bank's earnings for Q1 2022?
How did Cadence Bank perform in terms of loan growth in Q1 2022?
What is the dividend announced by Cadence Bank in Q1 2022?
How did Cadence Bank's credit quality change in Q1 2022?
What is the net interest margin for Cadence Bank for Q1 2022?
