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Cadence Bank Announces First Quarter 2023 Financial Results

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Cadence Bank (NYSE: CADE) reported its financial performance for the first quarter of 2023, achieving a net income of $74.3 million ($0.40 per diluted share) compared to $112.6 million ($0.60) in Q1 2022. Adjusted net income increased slightly to $124.4 million ($0.68 per diluted share). The bank witnessed deposit growth of $449.8 million (4.7% annualized) and organic loan growth of $933.3 million (12.5% annualized). However, net interest revenue declined to $354.3 million, down 1.42% from the last quarter. Noninterest revenue dropped to $74.1 million, primarily due to a $51.3 million loss on securities sales. The bank announced plans to consolidate 35 branches, projecting annual cost savings of $15-20 million.

Positive
  • Quarterly net income of $74.3 million, or $0.40 per diluted share.
  • Adjusted net income of $124.4 million, or $0.68 per diluted share, up from $121.6 million in Q1 2022.
  • Deposits increased by $449.8 million, or 4.7% annualized.
  • Generated net organic loan growth of $933.3 million, or 12.5% annualized.
  • Total shareholder equity rose to $4.5 billion from $4.3 billion in Q4 2022.
  • Projected annual cost savings of $15-$20 million from branch consolidations.
Negative
  • Net interest revenue declined to $354.3 million, down 1.42% from last quarter.
  • Noninterest revenue dropped significantly by $51.3 million due to securities sales loss.
  • Net charge-offs increased to $1.9 million, compared to net recoveries in previous quarters.

HOUSTON and TUPELO, Miss., April 24, 2023 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2023.

Highlights for the first quarter of 2023 included:

  • Achieved quarterly net income available to common shareholders of $74.3 million, or $0.40 per diluted common share, and adjusted net income available to common shareholders of $124.4 million, or $0.68 per diluted common share.
  • Continued to maintain strong balance sheet liquidity, with total deposit growth of $449.8 million, or 4.7% on an annualized basis, and a loan-to-deposit ratio of 79.4%.
  • Generated net organic loan growth of $933.3 million for the first quarter of 2023, or 12.5% on an annualized basis.
  • Maintained stability in the net interest margin at 3.29%, down 4 basis points from the prior quarter.
  • Experienced low levels of net charge-offs, which totaled 0.02% of average loans and leases on an annualized basis for the quarter; results for the quarter included a provision for credit losses of $10.0 million and an ending allowance for credit losses to total loans of 1.45%, which was stable compared to December 31, 2022.
  • The Company executed or announced the following as part of an ongoing effort to enhance its operating efficiency and profitability:
    • Executed a balance sheet optimization transaction whereby the Company sold $1.5 billion in low-yielding available-for-sale securities during February, with financial earn-back expected by early in the fourth quarter of 2023. The first quarter results include an after-tax realized loss of approximately $39.5 million related to this transaction and it is estimated to add an incremental $10.5 million to pre-tax earnings in 2023.
    • In April 2023, announced the closure or consolidation of 35 branches to occur in mid-2023 as part of in-process initiatives projected to reduce noninterest expense by approximately $15 - $20 million annually.

"Our first quarter results reflect continued strength in our balance sheet, as we continued to add quality loan growth while maintaining strong liquidity and capital, even in the midst of a unique quarter for the banking industry," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company. "Additionally, our strong capital and earnings allowed us the flexibility to capitalize on the rate environment by executing a balance sheet optimization transaction that, while creating an upfront loss on the sale, will result in incremental 2023 earnings for the Company. Given the late-quarter industry volatility, we proactively added on-balance sheet liquidity in addition to our significant off-balance sheet liquidity availability. Notably, however, our core deposit base showed little change during this period, a testament to the granularity of our deposits, the diversity of our customer base by both business mix and geography, and the strength of our bankers and their continuous focus on our customers."

Earnings Summary

For the first quarter of 2023, the Company reported net income available to common shareholders of $74.3 million, or $0.40 per diluted common share, compared with $112.6 million, or $0.60 per diluted common share, for the first quarter of 2022 and $95.6 million, or $0.52 per diluted common share, for the fourth quarter of 2022. Adjusted net income available to common shareholders was $124.4 million, or $0.68 per diluted common share, for the first quarter of 2023, compared with $121.6 million, or $0.65 per diluted common share, for the first quarter of 2022 and $142.9 million, or $0.78 per diluted common share, for the fourth quarter of 2022.  Additionally, the Company reported adjusted pre-provision net revenue (PPNR) of $174.6 million, or 1.46% of average assets on an annualized basis, for the first quarter of 2023 compared to $160.4 million, or 1.36% of average assets on an annualized basis, for the first quarter of 2022 and $195.5 million, or 1.62% of average assets on an annualized basis, for the fourth quarter of 2022.

The decline in adjusted earnings and PPNR metrics for the first quarter was driven by a decline in net interest revenue, an increase in the provision for credit losses, and an increase in core operating expenses related to several factors including seasonality in compensation expense as well as increasing deposit insurance assessment expense and pension expense.  The decline in net interest revenue is a result of day count for the quarter as well as the addition of on-balance sheet liquidity in response to recent volatility in the banking industry.

Net Interest Revenue

Net interest revenue was $354.3 million for the first quarter of 2023, compared to $311.8 million for the first quarter of 2022 and $359.4 million for the fourth quarter of 2022, a decrease of $5.1 million or 1.42% from the linked quarter. The fully taxable equivalent (FTE) net interest margin was 3.29% for the first quarter of 2023, compared with 2.92% for the first quarter of 2022 and 3.33% for the fourth quarter of 2022.

Net interest revenue included accretion revenue related to acquired loans and leases of $10.0 million and $9.2 million for the first quarter of 2023 and the fourth quarter of 2022, respectively, adding approximately 9 basis points to the net interest margin in both quarters.

The decline in net interest revenue in the first quarter of 2023 of $5.1 million compared to the linked quarter was the result of a $7.9 million decline due to the lower first quarter day count, partially offset by the increase in net interest revenue due to loan growth and the balance sheet optimization transaction resulting from the sale of low-yielding securities in the quarter.

Yields on net loans, loans held for sale, and leases excluding accretion, were 5.87% for the first quarter of 2023, up 46 basis points from 5.41% for the fourth quarter of 2022, while yields on total interest earning assets were 4.88% for the first quarter of 2023, up 50 basis points from 4.38% for the fourth quarter of 2022.  The increase in earning asset yields was driven by both the impact of rising interest rates on loan portfolio repricing and new loan production, as well as a mix shift as we deployed cash flow from lower yielding securities into higher yielding loans and securities.  Approximately 21% of our total loans are floating (reprice within 30 days), and another 28% reprice within 12 months. 

The average cost of total deposits increased to 1.28% for the first quarter of 2023, compared with 0.76% for the fourth quarter of 2022, reflecting continued rising rates as well as a mix shift from noninterest bearing to interest bearing products during the quarter.   Our total deposit beta was 59% for the first quarter of 2023 and currently stands at 25% cycle-to-date.  

Total interest-bearing liabilities costs increased to 2.23% from 1.54% during the quarter, reflecting the increase in short-term borrowings in the quarter as a result of both loan growth and a proactive increase in on-balance sheet liquidity late in the quarter in response to industry volatility.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $933.3 million during the first quarter, or 12.5% annualized, to $31.3 billion.  The loan growth for the quarter reflected growth primarily in the corporate banking group, including commercial real estate and renewable energy verticals, as well as in mortgage.

During the quarter, the Company initiated a balance sheet optimization transaction related to a portion of its investment securities portfolio. The Company sold $1.5 billion of available-for-sale U.S. Treasury debt securities yielding approximately 0.70% for an after-tax realized loss of approximately $39.5 million. The proceeds have been used to reinvest in higher-yielding debt securities, fund loan growth, and pay off borrowings.  The Company estimates that the loss will be recouped within approximately 7.5 months, resulting in incremental 2023 pre-tax income of approximately $10.5 million.  Total investment securities of $10.9 billion at March 31, 2023 decreased $1.1 billion during the first quarter as a net result of the sale and routine portfolio cash flows, partially offset by re-investments in the securities portfolio.  Consistent with prior quarters, all of the Company's investment securities portfolio is classified as available for sale on the balance sheet, with no investments categorized as held to maturity.

Total deposits increased $449.8 million, or 4.7% on an annualized basis, to $39.4 billion as of March 31, 2023.  The quarterly increase in deposits included approximately $1.6 billion in brokered deposits that were proactively added to the balance sheet to further enhance on-balance sheet liquidity, and a decline of approximately $0.7 billion in public funds as a result of routine seasonal activity. Excluding the impact of brokered deposits and public funds, total deposits declined approximately $400 million, or 1% of total deposits, during the quarter with a modest increase in community bank deposits partially offsetting a decline in the corporate banking group. 

The March 31, 2023 loan to deposit ratio was 79.4% and securities to total assets was 21.0%, reflecting continued strong balance sheet liquidity. Noninterest bearing deposits represented 29.2% of total deposits at the end of the first quarter of 2023, declining from 32.7% at December 31, 2022, reflecting migration from noninterest bearing products to interest bearing products. The Company's deposit base continues to be very granular, with average transaction account balances of approximately $20,000 for consumer accounts and $135,000 for commercial accounts at March 31, 2023. Additionally, approximately 98% of the Company's deposit accounts have balances less than $250,000, and nearly 70% of our deposit balances were FDIC insured or collateralized at quarter-end.

Short-term borrowings increased $2.4 billion to $5.7 billion at March 31, 2023, primarily reflecting an increase in on-balance sheet liquidity late in the quarter.  Cash, due from balances and deposits at the Federal Reserve accordingly increased $3.1 billion to $5.1 billion at March 31, 2023.

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Credit quality metrics for the first quarter of 2023 reflect continued low levels of net charge-offs, an increase in the provision for credit losses, and an increase in non-performing and classified assets.  While non-performing and classified asset levels did increase during the quarter, these metrics have been at historically low levels and continue to compare favorably to longer term normalized levels.  

Total non-performing assets as a percent of total assets were 0.33% at March 31, 2023 up from 0.31% at March 31, 2022 and 0.24% at December 31, 2022. Total non-performing loans and leases as a percent of loans were 0.53% at March 31, 2023, compared to 0.44% at March 31, 2022 and 0.36% at December 31, 2022.  Other real estate owned and other repossessed assets declined to $5.3 million at March 31, 2023 from the March 31, 2022 balance of $28.4 million and the December 31, 2022 balance of $6.7 million.  Classified loans were 2.28% of total net loans and leases at March 31, 2023, up from 1.75% at March 31, 2022 and 1.76% at December 31, 2022. 

Net charge-offs for the first quarter of 2023 were $1.9 million, or 0.02% of average net loans and leases on an annualized basis, compared with net recoveries of $0.4 million for the first quarter of 2022 and net recoveries of $5.0 million for the fourth quarter of 2022. The provision for credit losses for the first quarter of 2023 was $10.0 million, compared with no recorded provision for credit losses for first quarter of 2022 and a provision for credit losses of $6.0 million for the fourth quarter of 2022.  The first quarter of 2023 provision expense included a $15.0 million provision charge for funded loans and a $5.0 million provision reversal for unfunded commitments.  The allowance for credit losses of $453.7 million at March 31, 2023 represented 1.45% as a percent of total loans and leases, which is unchanged from the December 31, 2022 coverage.

Noninterest Revenue

Noninterest revenue was $74.1 million for the first quarter of 2023, compared with $128.4 million for the first quarter of 2022 and $114.9 million for the fourth quarter of 2022. The linked quarter decline was primarily due to a $51.3 million loss on the sale of securities.  Before the loss on securities, noninterest revenue of $125.4 million was up $9.9 million from the fourth quarter of 2022 revenue driven by  solid increases in insurance commission and mortgage banking revenue, partially offset by lower card revenues.

Insurance commission revenue was strong at $39.6 million for the first quarter of 2023, compared with $35.7 million for the first quarter of 2022 and $34.7 million for the fourth quarter of 2022. The linked quarter increase of $4.9 million is attributable to lower annual fourth quarter renewals as a result of seasonality in the scheduled renewal cycle while the increase from the first quarter of 2022 of 10.9% is a result of continued high customer retention rates and a firm pricing market.  

Credit card, debit card and merchant fee revenue was $11.9 million for the first quarter of 2023, compared with $11.3 million for the first quarter of 2022 and $15.8 million for the fourth quarter of 2022.  The linked quarter decline in card fee revenue reflected both typical seasonal declines in the first quarter as well as the impact of a fourth quarter 2022 positive vendor incentive revenue accrual adjustment of approximately $2.5 million. Deposit service charge revenue was $16.5 million for the first quarter of 2023 compared with $19.2 million for the first quarter of 2022 and $16.9 million for the fourth quarter of 2022, with the declines including increases in earnings credit rate due to the increasing rate environment.  Other noninterest revenue was $29.8 million for the first quarter of 2023, compared with $19.8 million for the first quarter of 2022 and $26.4 million for the fourth quarter of 2022.  The increase in other noninterest revenue compared to the fourth quarter of 2022 includes an increase in FHLB dividends, SBA revenue and credit related fees while the increase compared to the first quarter of 2022 is primarily driven by an increase in earnings from FHLB stock and other equity investments.

Mortgage production and servicing revenue totaled $8.4 million for the first quarter of 2023, compared with $7.7 million for the first quarter of 2022 and $5.4 million for the fourth quarter of 2022. The net mortgage servicing rights valuation adjustment was negative $2.3 million for the first quarter of 2023, compared with a positive $14.0 million for the first quarter of 2022 and a negative $2.8 million for the fourth quarter of 2022 with the variances due to continued changes in the interest rate environment. Mortgage origination volume for the first quarter of 2023 was $454.2 million, compared with $803.9 million for the first quarter of 2022 and $554.5 million for the fourth quarter of 2022.

Noninterest Expense

Noninterest expense for the first quarter of 2023 was $319.3 million, compared with $291.7 million for the first quarter of 2022 and $340.7 million for the fourth quarter of 2022. Adjusted noninterest expense for the first quarter of 2023 was $305.0 million, compared with $281.0 million for the first quarter of 2022 and $279.3 million for the fourth quarter of 2022. The adjusted efficiency ratio was 63.46% for the first quarter of 2023 compared to 58.69% for the fourth quarter of 2022. The increase in adjusted noninterest expense compared to the linked quarter was driven primarily by an increase in salaries and employee benefits expense. Salaries and benefits expense increased $11.8 million compared to the fourth quarter of 2022 due to both the impact of fourth quarter of 2022 year-end employee benefit expense reductions of approximately $7.3 million combined with first quarter of 2023 seasonal factors that elevated expense including an increase of $5.0 million in payroll tax expense resulting primarily from FICA resets. Deposit insurance assessment expense increased $2.4 million due primarily to the 2 basis point assessment increase effective in the first quarter 2023.  Additionally, excluding the impact of merger related items, other non-interest expense increased approximately $7.6 million compared to the fourth quarter of 2022.  This increase includes an increase in fraud losses of $2.4 million, which is in the process of collection over the coming quarters, a $1.7 million increase in pension costs resulting from an increase in the Company's pension discount rate and an increase in certain other volume driven costs.  Additionally, other noninterest expense for the fourth quarter of 2022 included a benefit of approximately $1.6 million related to year-end franchise tax accruals.

Adjusted noninterest expense for the first quarter of 2023 excludes $14.0 million in total merger related expenses, which includes one-time merger expense shown as a separate line item on the income statement as well as incremental merger related expenses (expenses for which the entity receives future benefit) that are included in the respective expense categories. Merger expense was $5.1 million for the first quarter of 2023, compared with $4.0 million for the first quarter of 2022 and $20.3 million for the fourth quarter of 2022. Merger expense for the first quarter of 2023 was comprised primarily of system and technology related expenses. Incremental merger related expenses for the first quarter of 2023 totaled $9.0 million and primarily included employment agreement and related compensation related expenses. These expenses declined compared to $32.7 million in the prior quarter.

The Company continues to identify strategic opportunities to improve operating efficiency, including branch optimization.  In April 2023, the Company announced 35 additional branch locations that will be closed or consolidated during mid 2023. This strategy, including other in-process initiatives, is estimated to result in annualized cost savings of approximately $15-20 million.  These branch closures and consolidations are in addition to the 17 executed in the fourth quarter of 2022.

Capital Management

Total shareholders' equity was $4.5 billion at March 31, 2023 compared with $4.6 billion at March 31, 2022 and $4.3 billion at December 31, 2022. The increase in the current quarter was comprised of net income and an improvement in accumulated other comprehensive income (loss) ("AOCI") due to improved valuation in the available-for-sale securities portfolio, partially offset by quarterly dividends. The year-over-year decline is due to a decline in AOCI resulting from an increase in unrealized losses in the available-for-sale securities portfolio due to the interest rate environment.

Estimated regulatory capital ratios at March 31, 2023 included Common Equity Tier 1 capital of 10.1%, Tier 1 capital of 10.6%, Total risk-based capital of 12.8%, and Tier 1 leverage capital of 8.4%.  During the first quarter of 2023, the Company did not repurchase shares of its common stock pursuant to its 10 million share repurchase authorization for 2023.  Outstanding common shares were 182.7 million as of March 31, 2023.

Summary

Rollins concluded, "We are pleased with how we are beginning the 2023 year. Despite the recent industry liquidity concerns, an uncertain rate environment, and questions around the broader economy and credit impact, I continue to be optimistic given the strength in our earnings, our balance sheet and our capital, as well as the differentiating stability resulting from our business, customer and geographical diversification. This diversification, combined with our great team of bankers, provides the resilient foundation we are proud of at Cadence Bank."

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 21 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its first quarter 2023 financial results on April 25, 2023, 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 $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, retirement plan management, and personal and business insurance. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.

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 (the "Exchange Act"), 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. 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; 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 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; the potential impact of the phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; 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; 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 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 combined 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, 2022, 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)



Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Earnings Summary:






Interest revenue

$       526,132

$       473,548

$       405,559

$       349,555

$       331,930

Interest expense

171,862

114,188

50,205

24,789

20,108

Net interest revenue

354,270

359,360

355,354

324,766

311,822

Provision for credit losses

10,000

6,000

—

1,000

—

Net interest revenue, after provision for credit losses

344,270

353,360

355,354

323,766

311,822

Noninterest revenue

74,071

114,873

124,491

125,234

128,435

Noninterest expense

319,279

340,671

319,734

285,888

291,667

Income before income taxes

99,062

127,562

160,111

163,112

148,590

Income tax expense

22,433

29,628

36,713

36,154

33,643

Net income

76,629

97,934

123,398

126,958

114,947

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$         74,257

$         95,562

$       121,026

$       124,586

$       112,575







Balance Sheet - Period End Balances





Total assets

$  51,693,096

$  48,653,414

$  47,699,660

$  47,747,708

$  47,204,061

Total earning assets

46,808,611

43,722,544

42,832,355

43,093,974

42,744,225

Available-for-sale securities

10,877,879

11,944,096

12,441,894

13,450,621

14,371,606

Loans and leases, net of unearned income

31,282,594

30,349,277

29,296,450

28,360,485

27,189,666

Allowance for credit losses (ACL)

453,727

440,347

433,363

440,112

438,738

Net book value of acquired loans

7,942,980

8,754,526

8,841,588

9,721,672

11,020,251

Unamortized net discount on acquired loans

41,748

58,162

58,887

65,350

72,620

Total deposits

39,406,454

38,956,614

39,003,946

40,189,083

40,568,055

Total deposits and repurchase agreements

40,177,789

39,665,350

39,682,280

40,838,260

41,271,615

Federal funds purchased and short-term FHLB advances

5,700,228

3,300,231

2,495,000

1,200,000

—

Subordinated and long-term debt

462,144

462,554

463,291

465,073

465,695

Total shareholders' equity

4,490,417

4,311,374

4,166,925

4,437,925

4,643,757

Total shareholders' equity, excluding AOCI (1)

5,572,303

5,533,912

5,464,737

5,374,270

5,307,757

Common shareholders' equity

4,323,424

4,144,381

3,999,932

4,270,932

4,476,764

Common shareholders' equity, excluding AOCI (1)

$    5,405,310

$    5,366,919

$    5,297,744

$    5,207,277

$    5,140,764







Balance Sheet - Average Balances





Total assets

$  48,652,201

$  47,790,494

$  47,595,557

$  47,064,829

$  47,679,850

Total earning assets

43,819,715

42,976,050

43,079,481

42,688,497

43,515,166

Available-for-sale securities

11,354,457

12,156,803

13,252,828

13,941,127

15,070,524

Loans and leases, net of unearned income

30,891,640

29,812,924

28,872,156

27,848,097

27,106,733

Total deposits

38,904,048

38,372,354

39,600,886

39,396,028

40,565,103

Total deposits and repurchase agreements

39,632,023

39,033,328

40,256,109

40,062,095

41,259,136

Subordinated and long-term debt

462,385

462,927

464,843

465,447

466,842

Total shareholders' equity

4,396,461

4,215,585

4,506,655

4,523,189

5,062,231

Common shareholders' equity

$    4,229,468

$    4,048,592

$    4,339,662

$    4,356,196

$    4,895,238







Nonperforming Assets:






Nonaccrual loans and leases

$       160,615

$         98,745

$         89,931

$         89,368

$         91,031

Loans and leases 90+ days past due, still accruing

5,164

2,068

11,984

19,682

20,957

Accruing TDR (2)

—

8,598

16,200

7,385

7,292

Non-performing loans and leases (NPL)

165,779

109,411

118,115

116,435

119,280

Other real estate owned and other assets

5,327

6,725

8,376

14,399

28,401

Non-performing assets (NPA)

$       171,106

$       116,136

$       126,491

$       130,834

$       147,681



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 24.

(2)

Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023.

 

Table 2

Selected Financial Ratios

 


Quarter Ended


Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Financial Ratios and Other Data:






Return on average assets (2)

0.64 %

0.81 %

1.03 %

1.08 %

0.98 %

Adjusted return on average assets (1)(2))

1.06

1.21

1.22

1.16

1.05

Return on average common shareholders' equity (2)

7.12

9.36

11.06

11.47

9.33

Adjusted return on average common shareholders' equity (1)(2)

11.93

14.00

13.13

12.36

10.07

Return on average tangible common equity (1)(2)

11.40

15.42

17.40

18.11

13.87

Adjusted return on average tangible common equity (1)(2)

19.10

23.04

20.66

19.50

14.98

Pre-tax pre-provision net revenue to total average assets (1)(2)

0.91

1.11

1.33

1.40

1.26

Adjusted pre-tax pre-provision net revenue to total average assets (1)(2)

1.46

1.62

1.58

1.51

1.36

Net interest margin-fully taxable equivalent

3.29

3.33

3.28

3.06

2.92

Net interest rate spread-fully taxable equivalent

2.65

2.84

3.05

2.94

2.81

Efficiency ratio fully tax equivalent (1)

74.36

71.67

66.49

63.38

66.10

Adjusted efficiency ratio fully tax equivalent (1)

63.46

58.69

60.33

60.46

63.52

Loan/deposit ratio

79.38 %

77.91 %

75.11 %

70.57 %

67.02 %

Full time equivalent employees

6,567

6,572

6,629

6,659

6,568







Credit Quality Ratios:






Net charge-offs (recoveries) to average loans and leases (2)

0.02 %

(0.07) %

0.09 %

(0.02) %

(0.01) %

Provision for credit losses to average loans and leases (2)

0.13

0.08

—

0.01

—

ACL to loans and leases, net

1.45

1.45

1.48

1.55

1.61

ACL to NPL

273.69

402.47

366.90

377.99

367.82

NPL to loans and leases, net

0.53

0.36

0.40

0.41

0.44

NPA to total assets

0.33

0.24

0.27

0.27

0.31







Equity Ratios:






Total shareholders' equity to total assets

8.69 %

8.86 %

8.74 %

9.29 %

9.84 %

Total common shareholders' equity to total assets

8.36

8.52

8.39

8.94

9.48

Tangible common shareholders' equity to tangible assets (1)

5.46

5.42

5.24

5.82

6.31

Tangible common shareholders' equity to tangible assets, excluding AOCI (1)

7.46

7.82

7.84

7.70

7.65







Capital Adequacy (3):






Common Equity Tier 1 capital

10.1 %

10.2 %

10.3 %

10.3 %

10.6 %

Tier 1 capital

10.6

10.7

10.7

10.8

11.1

Total capital

12.8

12.8

12.8

13.0

13.3

Tier 1 leverage capital

8.4

8.4

8.4

8.4

8.2



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 24.

(2)

Quarterly ratios are annualized.

(3)

Current quarter regulatory capital ratios are estimated.

 

Table 3

Selected Financial Information

 


Quarter Ended


Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Common Share Data:






Diluted earnings per share

$        0.40

$        0.52

$        0.66

$        0.68

$        0.60

Adjusted earnings per share (1)

0.68

0.78

0.78

0.73

0.65

Cash dividends per share

0.235

0.22

0.22

0.22

0.22

Book value per share

23.67

22.72

21.92

23.41

24.40

Tangible book value per share (1)

14.99

13.99

13.25

14.73

15.67

Market value per share (last)

20.76

24.66

25.41

23.48

29.26

Market value per share (high)

28.18

29.41

28.54

29.75

34.24

Market value per share (low)

19.24

22.43

22.04

22.82

27.95

Market value per share (avg)

24.88

26.84

25.68

25.74

31.20

Dividend payout ratio

58.75 %

42.31 %

33.33 %

32.44 %

36.60 %

Adjusted dividend payout ratio (1)

34.56 %

28.21 %

28.21 %

30.14 %

33.85 %

Total shares outstanding

182,684,578

182,437,265

182,438,780

182,461,786

183,488,844

Average shares outstanding - diluted

183,908,798

183,762,008

183,313,831

183,711,402

187,264,335







Yield/Rate:






(Taxable equivalent basis)






Loans, loans held for sale, and leases

6.00 %

5.54 %

4.82 %

4.29 %

4.23 %

Loans, loans held for sale, and leases excluding net accretion on

acquired loans and leases

5.87

5.41

4.70

4.12

3.96

Available-for-sale securities:






Taxable

1.80

1.54

1.44

1.37

1.26

Tax-exempt

3.21

3.28

3.05

2.95

2.57

Other investments

4.64

3.69

2.32

1.03

0.24

Total interest earning assets and revenue

4.88

4.38

3.74

3.29

3.10

Deposits

1.28

0.76

0.35

0.17

0.15

Interest bearing demand and money market

2.03

1.34

0.60

0.26

0.20

Savings

0.36

0.31

0.17

0.06

0.06

Time

2.24

1.17

0.56

0.47

0.52

Total interest bearing deposits

1.86

1.17

0.53

0.26

0.23

Fed funds purchased, securities sold under agreement to repurchase and other

3.73

3.04

1.65

0.43

0.11

Short-term FHLB borrowings

4.66

3.84

2.05

0.98

0.14

Total interest bearing deposits and short-term borrowings

2.20

1.50

0.64

0.29

0.22

Long-term debt

4.27

4.15

4.16

4.14

4.18

Total interest bearing liabilities

2.23

1.54

0.70

0.36

0.29

Interest bearing liabilities to interest earning assets

71.24 %

68.42 %

66.19 %

65.25 %

64.46 %

Net interest income tax equivalent adjustment

$      1,051

$      1,071

$      1,052

$      1,063

$      1,027



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 24.

 

Table 4

Consolidated Balance Sheets

(Unaudited)

 


As of

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

ASSETS






Cash and due from banks

$         660,431

$         756,906

$         693,999

$         770,293

$         781,310

Interest bearing deposits with other banks and Federal funds sold

4,452,029

1,241,246

895,630

1,069,410

880,742

Available-for-sale securities, at fair value

10,877,879

11,944,096

12,441,894

13,450,621

14,371,606

Loans and leases, net of unearned income

31,282,594

30,349,277

29,296,450

28,360,485

27,189,666

Allowance for credit losses

453,727

440,347

433,363

440,112

438,738

Net loans and leases

30,828,867

29,908,930

28,863,087

27,920,373

26,750,928

Loans held for sale, at fair value

196,110

187,925

198,381

213,458

302,211

Premises and equipment, net

826,439

817,430

802,382

782,728

781,209

Goodwill

1,459,302

1,458,795

1,449,511

1,444,209

1,409,038

Other intangible assets, net

125,724

132,764

132,953

138,370

191,642

Bank-owned life insurance

631,174

630,046

624,696

601,601

599,346

Other assets

1,635,141

1,575,276

1,597,127

1,356,645

1,136,029

Total Assets

$    51,693,096

$    48,653,414

$    47,699,660

$    47,747,708

$    47,204,061

LIABILITIES






Deposits:






Demand: Noninterest bearing

$    11,517,037

$    12,731,065

$    13,839,649

$    14,012,529

$    14,458,563

Interest bearing

18,146,678

19,040,131

18,033,648

19,032,983

18,854,543

 Savings

3,226,685

3,473,746

3,676,340

3,735,925

3,713,629

 Time deposits

6,516,054

3,711,672

3,454,309

3,407,646

3,541,320

Total deposits

39,406,454

38,956,614

39,003,946

40,189,083

40,568,055

Securities sold under agreement to repurchase

771,335

708,736

678,334

649,177

703,560

Federal funds purchased and short-term FHLB borrowings

5,700,228

3,300,231

2,495,000

1,200,000

—

Subordinated and long-term debt

462,144

462,554

463,291

465,073

465,695

Other liabilities

862,518

913,905

892,164

806,450

822,994

Total Liabilities

47,202,679

44,342,040

43,532,735

43,309,783

42,560,304

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,711

456,093

456,097

456,154

458,722

Capital surplus

2,715,981

2,709,391

2,695,646

2,686,031

2,701,371

Accumulated other comprehensive loss

(1,081,886)

(1,222,538)

(1,297,812)

(936,345)

(664,000)

Retained earnings

2,232,618

2,201,435

2,146,001

2,065,092

1,980,671

Total Shareholders' Equity

4,490,417

4,311,374

4,166,925

4,437,925

4,643,757

Total Liabilities & Shareholders' Equity

$    51,693,096

$    48,653,414

$    47,699,660

$    47,747,708

$    47,204,061

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

ASSETS






Cash and due from banks

$         695,263

$         617,634

$         654,589

$         640,672

$         656,630

Interest bearing deposits with other banks and Federal funds sold

1,526,755

943,806

851,185

751,972

1,161,262

Available-for-sale securities, at fair value

11,354,457

12,156,803

13,252,828

13,941,127

15,070,524

Loans and leases, net of unearned income

30,891,640

29,812,924

28,872,156

27,848,097

27,106,733

Allowance for credit losses

442,486

434,785

441,042

438,752

444,294

Net loans and leases

30,449,154

29,378,139

28,431,114

27,409,345

26,662,439

Loans held for sale, at fair value

46,863

62,517

103,312

147,301

176,647

Premises and equipment, net

824,190

802,771

809,799

784,247

785,005

Goodwill

1,459,127

1,457,120

1,444,331

1,407,452

1,407,973

Other intangible assets, net

128,957

132,091

136,149

188,897

195,606

Bank-owned life insurance

630,601

625,938

613,973

599,912

598,822

Other assets

1,536,834

1,613,675

1,298,277

1,193,904

964,942

Total Assets

$    48,652,201

$    47,790,494

$    47,595,557

$    47,064,829

$    47,679,850

LIABILITIES






Deposits:






Demand: Noninterest bearing

$    12,203,079

$    13,344,152

$    13,816,796

$    13,970,163

$    13,806,591

Interest bearing

19,009,345

17,866,198

18,675,214

18,238,571

19,401,019

 Savings

3,363,236

3,555,911

3,720,218

3,723,193

3,631,699

 Time deposits

4,328,388

3,606,093

3,388,658

3,464,101

3,725,794

Total deposits

38,904,048

38,372,354

39,600,886

39,396,028

40,565,103

Securities sold under agreement to repurchase

727,975

660,974

655,223

666,067

694,033

Federal funds purchased, short-term FHLB borrowings and other

3,326,196

3,251,947

1,608,587

1,294,946

131,556

Subordinated and long-term debt

462,385

462,927

464,843

465,447

466,842

Other liabilities

835,136

826,707

759,363

719,152

760,085

Total Liabilities

44,255,740

43,574,909

43,088,902

42,541,640

42,617,619

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,354

456,095

456,130

457,713

465,458

Capital surplus

2,710,501

2,701,121

2,689,340

2,694,546

2,779,746

Accumulated other comprehensive loss

(1,174,723)

(1,302,388)

(922,673)

(821,034)

(283,417)

Retained earnings

2,237,336

2,193,764

2,116,865

2,024,971

1,933,451

Total Shareholders' Equity

4,396,461

4,215,585

4,506,655

4,523,189

5,062,231

Total Liabilities & Shareholders' Equity

$    48,652,201

$    47,790,494

$    47,595,557

$    47,064,829

$    47,679,850

 

Table 6

Consolidated Statements of Income

(Unaudited)

 


Quarter Ended

(Dollars in thousands, except per share data)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

INTEREST REVENUE:






Loans and leases

$       457,084

$       414,623

$       349,093

$       296,680

$       282,266

Available-for-sale securities:






Taxable

48,515

45,807

46,701

46,254

45,155

Tax-exempt

2,477

2,547

2,548

2,571

2,414

Loans held for sale

603

1,788

2,241

2,118

1,407

Other interest revenue

17,453

8,783

4,976

1,932

688

Total interest revenue

526,132

473,548

405,559

349,555

331,930

INTEREST EXPENSE:






Interest bearing demand deposits and money

market accounts

95,344

60,253

28,175

11,717

9,742

Savings

3,014

2,769

1,597

590

568

Time deposits

23,950

10,651

4,797

4,041

4,764

Federal funds purchased and securities sold under

agreement to repurchase

7,667

8,365

3,944

906

216

Short-term debt

37,015

27,302

6,821

2,734

5

Subordinated and long-term debt

4,872

4,848

4,871

4,801

4,813

Total interest expense

171,862

114,188

50,205

24,789

20,108

Net interest revenue

354,270

359,360

355,354

324,766

311,822

Provision for credit losses

10,000

6,000

—

1,000

—

Net interest revenue, after provision for credit losses

344,270

353,360

355,354

323,766

311,822







NONINTEREST REVENUE:






Mortgage banking

6,076

2,571

9,080

11,446

21,763

Credit card, debit card and merchant fees

11,851

15,750

14,497

16,593

11,321

Deposit service charges

16,482

16,863

19,134

18,291

19,189

Security (losses) gains, net

(51,261)

(595)

(139)

1,446

(1,097)

Insurance commissions

39,606

34,679

39,876

39,994

35,727

Wealth management

21,532

19,199

19,335

20,213

21,737

Other noninterest income

29,785

26,406

22,708

17,251

19,795

Total noninterest revenue

74,071

114,873

124,491

125,234

128,435







NONINTEREST EXPENSE:






Salaries and employee benefits

195,702

183,918

191,193

182,094

187,819

Occupancy and equipment

29,113

30,539

30,610

30,129

28,270

Data processing and software

31,869

29,289

28,079

29,081

27,483

Merger expense

5,075

20,276

19,690

7,274

3,974

Amortization of intangibles

5,005

5,251

5,417

3,042

6,780

Deposit insurance assessments

8,361

5,931

4,499

4,945

3,336

Pension settlement expense

—

6,127

2,896

—

—

Other noninterest expense

44,154

59,340

37,350

29,323

34,005

Total noninterest expense

319,279

340,671

319,734

285,888

291,667

Income before income taxes

99,062

127,562

160,111

163,112

148,590

Income tax expense

22,433

29,628

36,713

36,154

33,643

Net income

76,629

97,934

123,398

126,958

114,947

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$         74,257

$         95,562

$       121,026

$       124,586

$       112,575

Net income per common share: Diluted

$             0.40

$             0.52

$             0.66

$             0.68

$             0.60

 

Table 7

Selected Loan Portfolio Data

(Unaudited)

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$      9,159,387

$      8,985,547

$      8,803,381

$      8,526,481

$      8,017,958

Owner occupied

4,278,468

4,068,659

3,943,442

3,851,336

3,703,914

Total commercial and industrial

13,437,855

13,054,206

12,746,823

12,377,817

11,721,872

Commercial real estate






Construction, acquisition and development

3,703,137

3,547,986

3,244,425

2,982,119

3,028,514

Income producing

5,368,676

5,150,680

5,098,470

5,054,232

4,795,486

Total commercial real estate

9,071,813

8,698,666

8,342,895

8,036,351

7,824,000

Consumer






Residential mortgages

8,536,032

8,319,242

7,924,378

7,662,621

7,355,995

Other consumer

236,894

277,163

282,354

283,696

287,799

Total consumer

8,772,926

8,596,405

8,206,732

7,946,317

7,643,794

Total loans and leases, net of unearned income

$    31,282,594

$    30,349,277

$    29,296,450

$    28,360,485

$    27,189,666







NON-PERFORMING ASSETS






Non-performing Loans and Leases






Nonaccrual Loans and Leases






Commercial and industrial






Non-real estate

$           65,783

$           23,907

$           23,916

$           34,233

$           33,086

Owner occupied

9,089

7,944

8,327

9,567

11,787

Total commercial and industrial

74,872

31,851

32,243

43,800

44,873

Commercial real estate






Construction, acquisition and development

1,850

2,974

1,823

2,125

1,618

Income producing

20,616

7,331

8,580

8,750

9,688

Total commercial real estate

22,466

10,305

10,403

10,875

11,306

Consumer






Residential mortgages

62,748

55,892

46,671

34,172

34,278

Other consumer

529

697

614

521

574

Total consumer

63,277

56,589

47,285

34,693

34,852

Total nonaccrual loans and leases

$         160,615

$           98,745

$           89,931

$           89,368

$           91,031







Loans and Leases 90+ Days Past Due, Still Accruing

5,164

2,068

11,984

19,682

20,957

Restructured Loans and Leases, Still Accruing

—

8,598

16,200

7,385

7,292

Total non-performing loans and leases

$         165,779

$         109,411

$         118,115

$         116,435

$         119,280







Other Real Estate Owned and Other Repossessed Assets

5,327

6,725

8,376

14,399

28,401

Total Non-performing Assets

$         171,106

$         116,136

$         126,491

$         130,834

$         147,681







Additions to nonaccrual loans and leases during the

quarter (excluding acquisitions)

$           89,779

$           38,945

$           34,432

$           21,312

$           16,374

 

Table 8

Allowance for Credit Losses

(Unaudited)

 


Quarter Ended

(Dollars in thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      440,347

$      433,363

$      440,112

$      438,738

$      446,415

Charge-offs:






Commercial and industrial

(2,853)

(2,295)

(11,551)

(2,170)

(2,682)

Commercial real estate

(1,988)

(426)

(1,116)

(275)

(313)

Consumer

(2,189)

(2,650)

(2,653)

(1,941)

(1,792)

Total loans charged-off

(7,030)

(5,371)

(15,320)

(4,386)

(4,787)

Recoveries:






Commercial and industrial

3,399

6,405

3,657

3,217

3,178

Commercial real estate

779

2,851

3,509

1,076

437

Consumer

977

1,099

1,405

1,467

1,612

Total recoveries

5,155

10,355

8,571

5,760

5,227

Net (charge-offs) recoveries

(1,875)

4,984

(6,749)

1,374

440

Adoption of new ASU related to modified loans (3)

255

—

—

—

—

Initial allowance on loans purchased with credit deterioration

—

—

—

—

(8,117)

Provision for credit losses related to loans and leases

15,000

2,000

—

—

—

Total provision for loans and leases

15,000

2,000

—

—

—

Balance, end of period

$      453,727

$      440,347

$      433,363

$      440,112

$      438,738







Average loans and leases, net of unearned income, for period

$ 30,891,640

$ 29,812,924

$ 28,872,156

$ 27,848,097

$ 27,106,733

Ratio: Net charge-offs (recoveries) to average loans and leases (2)

0.02 %

(0.07) %

0.09 %

(0.02) %

(0.01) %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$        28,551

$        24,551

$        24,551

$        23,551

$        23,551

(Reversal) provision for credit losses for unfunded commitments

(5,000)

4,000

—

1,000

—

Balance, end of period

$        23,551

$        28,551

$        24,551

$        24,551

$        23,551



(1)

The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.

(2)

Annualized.

(3)

Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023.

 

Table 9

Loan Portfolio by Grades

(Unaudited)

 


March 31, 2023

(In thousands)

Pass

Special Mention

Substandard

Impaired

Purchased

Credit

Deteriorated

(Loss)

Total

LOAN AND LEASE PORTFOLIO:







Commercial and industrial







Non-real estate

$   8,744,629

$      107,218

$      280,192

$        23,316

$          4,032

$   9,159,387

Owner occupied

4,201,364

11,928

59,764

3,739

1,673

4,278,468

Total commercial and industrial

12,945,993

119,146

339,956

27,055

5,705

13,437,855

Commercial real estate







Construction, acquisition and development

3,656,934

27,041

19,162

—

—

3,703,137

Income producing

5,191,260

36,598

116,784

5,476

18,558

5,368,676

Total commercial real estate

8,848,194

63,639

135,946

5,476

18,558

9,071,813

Consumer







Residential mortgages

8,361,116

—

173,342

—

1,574

8,536,032

Other consumer

232,637

—

4,257

—

—

236,894

Total consumer

8,593,753

—

177,599

—

1,574

8,772,926

Total loans and leases, net of unearned income

$ 30,387,940

$      182,785

$      653,501

$        32,531

$        25,837

$ 31,282,594

 


December 31, 2022

(In thousands)

Pass

Special Mention

Substandard

Impaired

Purchased

Credit

Deteriorated

(Loss)

Total

LOAN AND LEASE PORTFOLIO:







Commercial and industrial







Non-real estate

$    8,735,337

$         37,389

$       205,246

$           3,375

$           4,200

$    8,985,547

Owner occupied

4,024,179

6,062

32,912

3,824

1,682

4,068,659

Total commercial and industrial

12,759,516

43,451

238,158

7,199

5,882

13,054,206

Commercial real estate







Construction, acquisition and development

3,498,990

18,667

23,073

—

7,256

3,547,986

Income producing

5,035,880

27,330

68,948

—

18,522

5,150,680

Total commercial real estate

8,534,870

45,997

92,021

—

25,778

8,698,666

Consumer







Residential mortgages

8,159,904

232

157,532

—

1,574

8,319,242

Other consumer

272,182

—

4,981

—

—

277,163

Total consumer

8,432,086

232

162,513

—

1,574

8,596,405

Total loans and leases, net of unearned income

$  29,726,472

$         89,680

$       492,692

$           7,199

$         33,234

$  30,349,277

 

Table 10

Geographical Loan Information

(Unaudited)

 


March 31, 2023

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$  370,464

$  148,872

$  471,198

$  537,753

$  329,353

$  530,064

$    74,408

$  331,891

$                     3,958,744

$  2,406,640

$                     9,159,387

Owner occupied

384,004

247,806

291,558

319,831

284,527

578,141

92,030

173,729

1,597,745

309,097

4,278,468

Total commercial and industrial

754,468

396,678

762,756

857,584

613,880

1,108,205

166,438

505,620

5,556,489

2,715,737

13,437,855

Commercial real estate












Construction, acquisition and development

202,210

80,681

223,119

409,773

45,899

213,740

40,319

139,995

1,836,582

510,819

3,703,137

Income producing

432,113

273,397

377,826

616,799

214,952

424,004

193,518

340,114

1,907,173

588,780

5,368,676

Total commercial real estate

634,323

354,078

600,945

1,026,572

260,851

637,744

233,837

480,109

3,743,755

1,099,599

9,071,813

Consumer












Residential mortgages

1,163,319

377,180

580,893

374,343

439,998

1,070,648

158,404

672,393

3,441,995

256,859

8,536,032

Other consumer

30,764

17,067

6,220

7,115

11,205

84,523

1,392

16,317

55,444

6,847

236,894

Total consumer

1,194,083

394,247

587,113

381,458

451,203

1,155,171

159,796

688,710

3,497,439

263,706

8,772,926

Total loans and leases, net of unearned income

$  2,582,874

$  1,145,003

$  1,950,814

$  2,265,614

$  1,325,934

$  2,901,120

$  560,071

$  1,674,439

$  12,797,683

$  4,079,042

$  31,282,594













Loan growth, excluding loans acquired during the quarter ($)

$      6,215

$      5,070

$    78,734

$    54,397

$    (5,146)

$    50,709

$    19,336

$    51,814

$  363,463

$  308,725

$  933,317

Loan growth, excluding loans acquired during the quarter (%) (annualized)

0.98 %

1.80 %

17.06 %

9.98 %

(1.57) %

7.21 %

14.50 %

12.95 %

11.85 %

33.21 %

12.47 %

 




December 31, 2022

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$      367,656

$      156,600

$      446,454

$      543,854

$      317,127

$      515,897

$        67,208

$      315,410

$   3,948,846

$   2,306,495

$   8,985,547

Owner occupied

370,125

248,015

296,159

304,096

287,915

553,376

96,500

177,315

1,481,888

253,270

4,068,659

Total commercial and industrial

737,781

404,615

742,613

847,950

605,042

1,069,273

163,708

492,725

5,430,734

2,559,765

13,054,206

Commercial real estate












Construction, acquisition and development

226,990

82,356

180,017

396,250

54,945

246,402

35,861

162,977

1,738,098

424,090

3,547,986

Income producing

425,617

260,602

369,848

580,819

216,519

403,491

188,775

302,252

1,900,831

501,926

5,150,680

Total commercial real estate

652,607

342,958

549,865

977,069

271,464

649,893

224,636

465,229

3,638,929

926,016

8,698,666

Consumer












Residential mortgages

1,155,001

374,544

574,308

373,371

442,087

1,044,746

150,952

647,556

3,301,528

255,149

8,319,242

Other consumer

31,270

17,816

5,294

12,827

12,487

86,499

1,439

17,115

63,029

29,387

277,163

Total consumer

1,186,271

392,360

579,602

386,198

454,574

1,131,245

152,391

664,671

3,364,557

284,536

8,596,405

Total loans and leases, net of unearned income

$   2,576,659

$   1,139,933

$   1,872,080

$   2,211,217

$   1,331,080

$   2,850,411

$      540,735

$   1,622,625

$ 12,434,220

$   3,770,317

$ 30,349,277

 

Table 11

Noninterest Revenue and Expense

(Unaudited)

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

NONINTEREST REVENUE:






Mortgage banking excl. MSR and MSR hedge

market value adjustment

$             8,379

$             5,408

$             4,746

$             6,754

$             7,733

MSR and MSR hedge market value adjustment

(2,303)

(2,837)

4,334

4,692

14,030

Credit card, debit card and merchant fees

11,851

15,750

14,497

16,593

11,321

Deposit service charges

16,482

16,863

19,134

18,291

19,189

Security (losses) gains, net

(51,261)

(595)

(139)

1,446

(1,097)

Insurance commissions

39,606

34,679

39,876

39,994

35,727

Trust income

10,553

9,113

9,011

9,129

10,061

Annuity fees

2,192

951

600

753

604

Brokerage commissions and fees

8,787

9,135

9,724

10,331

11,072

Bank-owned life insurance

3,647

5,436

3,537

3,285

3,336

Other miscellaneous income

26,138

20,970

19,171

13,966

16,459

Total noninterest revenue

$           74,071

$         114,873

$         124,491

$         125,234

$         128,435







NONINTEREST EXPENSE:






Salaries and employee benefits

$         195,702

$         183,918

$         191,193

$         182,094

$         187,819

Occupancy and equipment

29,113

30,539

30,610

30,129

28,270

Deposit insurance assessments

8,361

5,931

4,499

4,945

3,336

Pension settlement expense

—

6,127

2,896

—

—

Advertising and public relations

4,331

28,659

4,085

4,417

4,593

Foreclosed property expense

980

400

1,093

(1,104)

440

Telecommunications

1,717

1,714

1,882

1,984

1,833

Travel and entertainment

3,508

5,310

4,149

3,412

2,811

Data processing and software

31,869

29,289

28,079

29,081

27,483

Professional, consulting and outsourcing

4,417

3,598

2,724

3,769

3,737

Amortization of intangibles

5,005

5,251

5,417

3,042

6,780

Legal

1,491

758

2,054

1,463

1,793

Merger expense

5,075

20,276

19,690

7,274

3,974

Postage and shipping

2,452

1,925

2,098

2,022

2,034

Other miscellaneous expense

25,258

16,976

19,265

13,360

16,764

Total noninterest expense

$         319,279

$         340,671

$         319,734

$         285,888

$         291,667







INSURANCE COMMISSIONS:






Property and casualty commissions

$           28,202

$           24,682

$           30,021

$           29,220

$           25,852

Life and health commissions

8,024

7,151

7,254

7,935

7,143

Risk management income

657

887

654

674

757

Other

2,723

1,959

1,947

2,165

1,975

Total insurance commissions

$           39,606

$           34,679

$           39,876

$           39,994

$           35,727

 

Table 12

Average Balance and Yields

(Unaudited)

 


Quarter Ended


March 31, 2023


December 31, 2022


March 31, 2022

(Dollars in thousands)

Average

Balance

Income/Expense

Yield/

Rate


Average

Balance

Income/Expense

Yield/

Rate


Average

Balance

Income/Expense

Yield/

Rate

ASSETS












Interest-earning assets:












Loans and leases, excluding accretion

$ 30,891,640

$   447,449

5.87 %


$  29,812,924

$   405,827

5.40 %


$ 27,106,733

$   264,910

3.96 %

Accretion income on acquired loans


10,028

0.13



9,190

0.12



17,741

0.27

Loans held for sale

46,863

603

5.22


62,517

1,788

11.35


176,647

1,407

3.23

Investment securities












Taxable

10,957,786

48,515

1.80


11,767,062

45,807

1.54


14,588,090

45,155

1.26

Tax-exempt

396,671

3,135

3.21


389,741

3,224

3.28


482,434

3,056

2.57

Total investment securities

11,354,457

51,650

1.84


12,156,803

49,031

1.60


15,070,524

48,211

1.30

Other investments

1,526,755

17,453

4.64


943,806

8,783

3.69


1,161,262

688

0.24

Total interest-earning assets

43,819,715

527,183

4.88 %


42,976,050

474,619

4.38 %


43,515,166

332,957

3.10 %

Other assets

5,274,972




5,249,229




4,608,978



Allowance for credit losses

442,486




434,785




444,294



Total assets

$ 48,652,201




$  47,790,494




$ 47,679,850















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 19,009,345

$     95,344

2.03 %


$  17,866,198

$     60,253

1.34 %


$ 19,401,019

9,742

0.20 %

Savings deposits

3,363,236

3,014

0.36


3,555,911

2,769

0.31


3,631,699

568

0.06

Time deposits

4,328,388

23,950

2.24


3,606,093

10,651

1.17


3,725,794

4,764

0.52

Total interest-bearing deposits

26,700,969

122,308

1.86


25,028,202

73,673

1.17


26,758,512

15,074

0.23

Fed funds purchased, securities sold under

agreement to repurchase and other

$     832,831

$       7,669

3.73


$ 1,091,029

$       8,365

3.04


$     811,422

216

0.11

Short-term FHLB borrowings

3,221,340

37,013

4.66


2,821,892

27,302

3.84


14,167

5

0.14

Long-term borrowings

462,385

4,872

4.27


462,927

4,848

4.15


466,842

4,813

4.18

Total interest-bearing liabilities

31,217,525

171,862

2.23 %


29,404,050

114,188

1.54 %


28,050,943

20,108

0.29 %

Noninterest-bearing liabilities:












Demand deposits

12,203,079




13,344,152




13,806,591



Other liabilities

835,136




826,707




760,085



Total liabilities

44,255,740




43,574,909




42,617,619



Shareholders' equity

4,396,461




4,215,585




5,062,231



Total liabilities and shareholders' equity

$ 48,652,201




$  47,790,494




$ 47,679,850



Net interest income/net interest spread


355,321

2.65 %



360,431

2.84 %



312,849

2.81 %

Net yield on earning assets/net interest margin



3.29 %




3.33 %




2.92 %

Taxable equivalent adjustment:












Loans and investment securities


(1,051)




(1,071)




(1,027)


Net interest revenue


$   354,270




$   359,360




$   311,822


 

Table 13

Selected Additional Data

(Unaudited)

 


Quarter Ended

(Dollars in thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      109,744

$      112,767

$      102,021

$        92,859

$        69,552

Originations of servicing assets

1,385

2,283

3,890

4,962

5,155

Changes in fair value:






Due to payoffs/paydowns

(1,078)

(2,308)

(3,085)

(3,253)

(3,147)

Due to update in valuation assumptions

(3,109)

(2,998)

9,941

7,453

21,299

Fair value, end of period

$      106,942

$      109,744

$      112,767

$      102,021

$        92,859







MORTGAGE BANKING REVENUE:






Origination

$          3,344

$          1,793

$          1,916

$          4,042

$          5,118

Servicing

6,113

5,923

5,915

5,965

5,762

Payoffs/Paydowns

(1,078)

(2,308)

(3,085)

(3,253)

(3,147)

Total mortgage banking revenue excluding MSR

8,379

5,408

4,746

6,754

7,733

Market value adjustment on MSR

(3,109)

(2,998)

9,941

7,453

21,299

Market value adjustment on MSR Hedge

806

161

(5,607)

(2,761)

(7,269)

Total mortgage banking revenue

$          6,076

$          2,571

$          9,080

$        11,446

$        21,763







Mortgage loans serviced

$   7,633,236

$   7,692,744

$   7,723,605

$   7,685,994

$   7,629,119

MSR/mortgage loans serviced

1.40 %

1.43 %

1.46 %

1.33 %

1.22 %

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

AVAILABLE-FOR-SALE SECURITIES, at fair value






U.S. Treasury securities

$           15,849

$      1,458,513

$      1,451,461

$      1,466,313

$      1,459,845

Obligations of U.S. government agencies

1,358,350

1,477,127

1,820,913

2,133,561

2,350,810

Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"):






Residential pass-through:






Guaranteed by GNMA

83,649

84,368

87,063

95,955

105,900

Issued by FNMA and FHLMC

6,164,294

6,274,970

6,427,152

7,014,715

7,604,829

Other residential mortgage-back securities

166,449

168,452

181,317

201,440

212,216

Commercial mortgage-backed securities

2,427,808

1,881,853

1,880,949

1,899,785

1,951,367

Total MBS

8,842,200

8,409,643

8,576,481

9,211,895

9,874,312

Obligations of states and political subdivisions

447,731

466,002

444,953

485,400

530,241

Other domestic debt securities

73,557

82,718

98,615

101,313

103,117

Foreign debt securities

140,192

50,093

49,471

52,139

53,281

Total available-for-sale securities

$    10,877,879

$    11,944,096

$    12,441,894

$    13,450,621

$    14,371,606

 

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 net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net 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, adjusted return on average tangible common equity, adjusted return on average assets, 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), and 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.


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Adjusted net income available to common shareholders






Net income

$            76,629

$            97,934

$          123,398

$          126,958

$          114,947

Plus: Merger expense

5,075

20,276

19,690

7,274

3,974

Incremental merger related expense

8,960

32,704

6,912

6,060

6,571

Branch closure and other restructuring charges

212

2,254

6

705

128

Pension settlement expense

—

6,127

2,896

—

—

Less: Security (losses) gains, net

(51,261)

(595)

(139)

1,446

(1,097)

Tax adjustment

15,394

14,665

7,016

2,981

2,786

Adjusted net income

126,743

145,225

146,025

136,570

123,931

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Adjusted net income available to common shareholders

$          124,371

$          142,853

$          143,653

$          134,198

$          121,559

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Pre-tax pre-provision net revenue






Net income

$           76,629

$           97,934

$         123,398

$         126,958

$         114,947

Plus:    Provision for credit losses

10,000

6,000

—

1,000

—

Income tax expense

22,433

29,628

36,713

36,154

33,643

Pre-tax pre-provision net revenue

$         109,062

$         133,562

$         160,111

$         164,112

$         148,590

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Adjusted pre-tax pre-provision net revenue






Net income

$           76,629

$           97,934

$         123,398

$         126,958

$         114,947

Plus:    Provision for credit losses

10,000

6,000

—

1,000

—

Merger expense

5,075

20,276

19,690

7,274

3,974

Incremental merger related expense

8,960

32,704

6,912

6,060

6,571

Branch closure and other restructuring charges

212

2,254

6

705

128

Pension settlement expense

—

6,127

2,896

—

—

Income tax expense

22,433

29,628

36,713

36,154

33,643

Less: Security (losses) gains, net

(51,261)

(595)

(139)

1,446

(1,097)

Adjusted pre-tax pre-provision net revenue

$         174,570

$         195,518

$         189,754

$         176,705

$         160,360

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Total adjusted noninterest expense






Total noninterest expense

$         319,279

$         340,671

$         319,734

$         285,888

$         291,667

Less:   Merger expense

5,075

20,276

19,690

7,274

3,974

Incremental merger related expense

8,960

32,704

6,912

6,060

6,571

Branch closure and other restructuring charges

212

2,254

6

705

128

Pension settlement expense

—

6,127

2,896

—

—

Total adjusted noninterest expense

$         305,032

$         279,310

$         290,230

$         271,849

$         280,994

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Total tangible assets, excluding AOCI






Total assets

$    51,693,096

$    48,653,414

$    47,699,660

$    47,747,708

$    47,204,061

Less:  Goodwill

1,459,302

1,458,795

1,449,511

1,444,209

1,409,038

Other identifiable intangible assets

125,724

132,764

132,953

138,370

191,642

Total tangible assets

50,108,070

47,061,855

46,117,196

46,165,129

45,603,381

Less: AOCI

(1,081,886)

(1,222,538)

(1,297,812)

(936,345)

(664,000)

Total tangible assets, excluding AOCI

$    51,189,956

$    48,284,393

$    47,415,008

$    47,101,474

$    46,267,381

 


Quarter Ended

(In thousands)

Mar 2023

Dec 2022

Sep 2022

Jun 2022

Mar 2022

PERIOD END BALANCES:






Total shareholders' equity, excluding AOCI






Total shareholders' equity

$   4,490,417

$   4,311,374

$   4,166,925

$   4,437,925

$   4,643,757

Less: AOCI

(1,081,886)

(1,222,538)

(1,297,812)

(936,345)

(664,000)

Total shareholders' equity, excluding AOCI

$   5,572,303

$   5,533,912

$   5,464,737

$   5,374,270

$   5,307,757







Common shareholders' equity, excluding AOCI






Total shareholders' equity

$   4,490,417

$   4,311,374

$   4,166,925

$   4,437,925

$   4,643,757

Less: preferred stock

166,993

166,993

166,993

166,993

166,993

Common shareholders' equity

4,323,424

4,144,381

3,999,932

4,270,932

4,476,764

Less: AOCI

(1,081,886)

(1,222,538)

(1,297,812)

(936,345)

(664,000)

Common shareholders' equity, excluding AOCI

$   5,405,310

$   5,366,919

$   5,297,744

$   5,207,277

$   5,140,764







Total tangible common shareholders' equity, excluding AOCI






Total shareholders' equity

$   4,490,417

$   4,311,374

$   4,166,925

$   4,437,925

$   4,643,757

Less:  Goodwill

1,459,302

1,458,795

1,449,511

1,444,209

1,409,038

Other identifiable intangible assets

125,724

132,764

132,953

138,370

191,642

Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

2,738,398

2,552,822

2,417,468

2,688,353

2,876,084

Less: AOCI

(1,081,886)

(1,222,538)

(1,297,812)

(936,345)

(664,000)

Total tangible common shareholders' equity, excluding AOCI

$   3,820,284

$   3,775,360

$   3,715,280

$   3,624,698

$   3,540,084







AVERAGE BALANCES:






Total tangible common shareholders' equity






Total shareholders' equity

$   4,396,461

$   4,215,585

$   4,506,655

$   4,523,189

$   5,062,231

Less:   Goodwill

1,459,127

1,457,120

1,444,331

1,407,452

1,407,973

Other identifiable intangible assets

128,957

132,091

136,149

188,897

195,606

Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

$   2,641,384

$   2,459,381

$   2,759,182

$   2,759,847

$   3,291,659







Total average assets

$ 48,652,201

$ 47,790,494

$ 47,595,557

$ 47,064,829

$ 47,679,850

Total shares of common stock outstanding

182,684,578

182,437,265

182,438,780

182,461,786

183,488,844

Average shares outstanding-diluted

183,908,798

183,762,008

183,313,831

183,711,402

187,264,335







Tangible common shareholders' equity to tangible assets (1)

5.46 %

5.42 %

5.24 %

5.82 %

6.31 %

Tangible common shareholders' equity to tangible assets, excluding AOCI (2)

7.46

7.82

7.84

7.70

7.65

Return on average tangible common equity (3)

11.40

15.42

17.40

18.11

13.87

Adjusted return on average tangible common equity (4)

19.10

23.04

20.66

19.50

14.98

Adjusted return on average assets (5)

1.06

1.21

1.22

1.16

1.05

Adjusted return on average common shareholders' equity (6)

11.93

14.00

13.13

12.36

10.07

Pre-tax pre-provision net revenue to total average assets (7)

0.91

1.11

1.33

1.40

1.26

Adjusted pre-tax pre-provision net revenue to total average assets (8)

1.46

1.62

1.58

1.51

1.36

Tangible book value per common share (9)

$          14.99

$          13.99

$          13.25

$          14.73

$          15.67

Tangible book value per common share, excluding AOCI (10)

20.91

20.69

20.36

19.87

19.29

Adjusted earnings per common share (11)

$            0.68

$            0.78

$            0.78

$            0.73

$            0.65

Adjusted dividend payout ratio (12)

34.56 %

28.21 %

28.21 %

30.14 %

33.85 %

 

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 identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

(2)

Tangible common shareholders' equity to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other identifiable intangible assets and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other identifiable intangible assets.

(3)

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.

(4)

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.

(5)

Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets.

(6)

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.

(7)

 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.

(8)

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.

(9)

Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding.

(10)

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.

(11)

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.

(12)

Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders.

 

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. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense.

 

Cision View original content:https://www.prnewswire.com/news-releases/cadence-bank-announces-first-quarter-2023-financial-results-301805964.html

SOURCE Cadence Bank

FAQ

What were Cadence Bank's earnings for Q1 2023?

Cadence Bank reported a net income of $74.3 million, or $0.40 per diluted share, for Q1 2023.

How much did Cadence Bank's deposits grow in Q1 2023?

Deposits grew by $449.8 million, which is an annualized growth rate of 4.7%.

What is the loan growth figure reported by Cadence Bank for Q1 2023?

Cadence Bank achieved net organic loan growth of $933.3 million, or 12.5% on an annualized basis.

What are the projected cost savings from Cadence Bank's branch consolidations?

Cadence Bank anticipates annual cost savings of approximately $15 million to $20 million from consolidating 35 branches.

How did the net interest revenue change for Cadence Bank in Q1 2023?

Net interest revenue for Cadence Bank decreased to $354.3 million, down 1.42% from the previous quarter.

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Cadence Bank

NYSE:CADE

CADE Rankings

#1086 Ranked by Market Cap
#1175 Ranked by Dividends

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CADE Stock Data

7.05B
155.72M
0.02%
84.85%
3.07%
Banks - Regional
Financial Services
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United States of America
Tupelo