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Cadence Bank Announces First Quarter 2024 Financial Results

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Cadence Bank (NYSE: CADE) announced its first quarter 2024 financial results, reporting a net income of $114.6 million and adjusted net income of $114.4 million. Key highlights included net organic loan growth of $385.6 million, a 4.8% increase, and core customer deposit growth of $400.0 million, a 5.0% rise. The net interest margin improved to 3.22%, total adjusted revenue increased by 7.4%, and operating efficiency improved with a 589 basis points reduction in the adjusted efficiency ratio. The company repurchased over 657,000 shares of common stock, maintaining strong regulatory capital. Credit quality remained stable, with a provision for credit losses of $22.0 million and a 1.44% allowance for credit losses. Noninterest revenue was $83.8 million, driven by growth in mortgage banking revenue, and noninterest expense decreased by $6.2 million. Total shareholders' equity stood at $5.2 billion with strong regulatory capital ratios. Cadence Bank's strategic accomplishments and operational improvements resulted in positive financial performance and a strong balance sheet.
Positive
  • Net income of $114.6 million and adjusted net income of $114.4 million reported for the first quarter of 2024.
  • Net organic loan growth of $385.6 million and core customer deposit growth of $400.0 million.
  • Improved net interest margin to 3.22% and a 7.4% increase in total adjusted revenue.
  • Operating efficiency improved with a 589 basis points reduction in the adjusted efficiency ratio.
  • Repurchased over 657,000 shares of common stock, maintaining strong regulatory capital.
  • Stable credit quality with a provision for credit losses of $22.0 million and a 1.44% allowance for credit losses.
  • Noninterest revenue was $83.8 million, driven by growth in mortgage banking revenue.
  • Noninterest expense decreased by $6.2 million.
  • Total shareholders' equity stood at $5.2 billion with strong regulatory capital ratios.
  • Strategic accomplishments and operational improvements resulted in positive financial performance and a strong balance sheet.
Negative
  • None.

HOUSTON and TUPELO, Miss., April 22, 2024 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2024.

Highlights for the first quarter of 2024 included:

  • Achieved quarterly net income available to common shareholders of $114.6 million, or $0.62 per diluted common share, and adjusted net income from continuing operations available to common shareholders,(1) which excludes non-routine income and expenses,(2) of $114.4 million, which is also $0.62 per diluted common share.
  • Generated net organic loan growth of $385.6 million, or 4.8% on an annualized basis, for the first quarter of 2024. Core customer deposits, defined as total deposits excluding public funds and brokered deposits, reflected organic growth of approximately $400.0 million, or 5.0% on an annualized basis, in the first quarter of 2024.
  • Net interest margin improved 18 basis points to 3.22% from 3.04% for the fourth quarter of 2023, benefiting from the fourth quarter 2023 securities portfolio repositioning as well as net loan growth in the first quarter of 2024.
  • Total adjusted revenue(1) of $437.7 million increased $30.0 million, or 7.4%, from prior quarter.
  • Improvement in operating efficiency included a $6.2 million decline in adjusted noninterest expense(1) compared to the fourth quarter of 2023 and an improvement in the adjusted efficiency ratio(1) of 589 basis points to 60.1% for the first quarter of 2024.
  • Continued to maintain strong balance sheet liquidity, with a loan-to-deposit ratio of 86.3% at March 31, 2024.
  • Repurchased 657,593 shares of common stock at a weighted average price of $25.65 per share; regulatory capital remained strong with Common Equity Tier 1 Capital of 11.7% and Total Capital of 14.5%.

"Our Company's first quarter results reflect improved operating performance resulting from several strategic accomplishments over the past several quarters as well as continued success in business development," remarked Dan Rollins, chairman and chief executive officer of Cadence Bank. "We hit on all cylinders, realizing nice increases in loans and core customer deposits, strong revenue growth coupled with lower expenses, and a continued strong balance sheet poised for ongoing growth. Our efforts to improve efficiency are reflected in a meaningful reduction in operating expenses compared to both the first and fourth quarters of 2023.  Finally, we were able to opportunistically repurchase approximately 657,000 shares during the first quarter, further benefiting earnings per share."

Earnings Summary

Given the sale of Cadence Insurance, Inc. ("Cadence Insurance") in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations.  The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented.  All adjusted financial results discussed herein are adjusted results from continuing operations.

For the first quarter of 2024, the Company reported net income available to common shareholders of $114.6 million, or $0.62 per diluted common share, compared with $74.3 million, or $0.40 per diluted common share, for the first quarter of 2023 and $256.7 million, or $1.41 per diluted common share, for the fourth quarter of 2023. Adjusted net income available to common shareholders from continuing operations(1) was $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024, compared with $120.7 million, or $0.66 per diluted common share, for the first quarter of 2023 and $72.7 million, or $0.40 per diluted common share, for the fourth quarter of 2023. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $174.2 million, or 1.44% of average assets on an annualized basis, for the first quarter of 2024 compared to $169.6 million, or 1.41% of average assets on an annualized basis, for the first quarter of 2023 and $137.9 million, or 1.13% of average assets on an annualized basis, for the fourth quarter of 2023.

Net Interest Revenue

Net interest revenue was $353.9 million for the first quarter of 2024, compared to $354.3 million for the first quarter of 2023 and $334.6 million for the fourth quarter of 2023. The net interest margin (fully taxable equivalent) was 3.22% for the first quarter of 2024, compared with 3.29% for the first quarter of 2023 and 3.04% for the fourth quarter of 2023.

Net interest revenue increased $19.3 million, or 5.8%, compared to the fourth quarter of 2023 as the Company continues to benefit from the fourth quarter 2023 securities portfolio repositioning and improved earning asset mix resulting from continued deployment of cash as well as first quarter 2024 loan growth.  Purchase accounting accretion revenue was $3.5 million and $4.1 million for the first quarter of 2024 and the fourth quarter of 2023, respectively.

Yield on net loans, loans held for sale, and leases excluding accretion, was 6.46% for the first quarter of 2024, up 3 basis points from 6.43% for the fourth quarter of 2023. Approximately 28% of our total loans are floating (reprice within 30 days), and another 20% reprice within 12 months. Our total loan beta, excluding accretion, is 46% cycle-to-date. Investment securities yielded 3.13% in the first quarter of 2024, up 65 basis points from 2.48% in the fourth quarter of 2023, and up from 1.84% in the first quarter of 2023, reflective of the securities restructurings that occurred in 2023. As a result, the yield on total interest earning assets increased to 5.80% for the first quarter of 2024, up 21 basis points from 5.59% for the fourth quarter of 2023.

The average cost of total deposits increased to 2.45% for the first quarter of 2024, up 13 basis points compared to the fourth quarter of 2023. The first quarter increase in total deposit costs continued to slow compared to recent quarters.  Total interest-bearing liabilities cost increased to 3.40% for the first quarter of 2024 from 3.34% for the fourth quarter of 2023.  Our total deposit beta, excluding brokered deposits, is 43% cycle-to-date.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $385.6 million during the first quarter, or 4.8% annualized to $32.9 billion.  The loan growth for the quarter was primarily in our non-real estate and owner occupied commercial and industrial portfolios as well as residential mortgages.

Total deposits were $38.1 billion as of March 31, 2024, a decline of $376.9 million from the prior quarter. The decline included a $262.8 million reduction in brokered deposits as the Company continues to reduce its use of brokered deposits. Total public fund balances declined $874.0 million from the linked quarter to $4.8 billion at March 31, 2024, reflecting seasonal volatility in these balances.  Importantly, core customer deposits, which excludes brokered deposits and public funds, reflected organic growth of approximately $400.0 million compared to December 31, 2023.  In addition, we had approximately $360.0 million in customer balances transition from repo products into deposit products during the first quarter of 2024.

The March 31, 2024 loan to deposit ratio was 86.3% and securities to total assets was 17.2%, reflecting continued strong liquidity. Noninterest bearing deposits represented 23.1% of total deposits at the end of the first quarter of 2024, reflecting a slight decline from 24.0% at December 31, 2023. The Company's deposit base continues to be very granular, with average transaction account balances of approximately $23,000 for consumer accounts and $129,000 for commercial accounts at March 31, 2024. Additionally, approximately 98% of the Company's deposit accounts have balances less than $250,000, and approximately 74% of our deposit balances were FDIC insured or collateralized at quarter-end.

Total investment securities increased $0.2 billion during the quarter to $8.3 billion at March 31, 2024. Cash, due from balances and deposits at the Federal Reserve declined $1.2 billion to $3.0 billion at March 31, 2024, as the Company continued to reinvest in securities, reduce reliance on brokered deposits and fund loan growth.  Additionally, the Company refinanced the $3.5 billion bank term funding program borrowing early in the first quarter, lowering the cost from 4.84% at December 31, 2023 to 4.76% at March 31, 2024.

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

Net charge-offs for the first quarter of 2024 were $19.5 million, or 0.24% of average net loans and leases on an annualized basis, compared with net charge-offs of $1.9 million, or 0.02% of average net loans and leases on an annualized basis, for the first quarter of 2023 and net charge-offs of $23.8 million, or 0.29% of average net loans and leases on an annualized basis, for the fourth quarter of 2023. The provision for credit losses for the first quarter of 2024 was $22.0 million, compared with $10.0 million for the first quarter of 2023 and $38.0 million for the fourth quarter of 2023. The allowance for credit losses of $472.6 million at March 31, 2024 remained unchanged from the prior quarter at 1.44% of total loans and leases.

Total non-performing assets as a percent of total assets were 0.51% at March 31, 2024 compared to 0.32% at March 31, 2023 and 0.45% at December 31, 2023. Total non-performing loans and leases as a percent of loans and leases, net were 0.73% at March 31, 2024, compared to 0.51% at March 31, 2023 and 0.67% at December 31, 2023.  Other real estate owned and other repossessed assets was $5.3 million at March 31, 2024 compared to the March 31, 2023 balance of $5.3 million and the December 31, 2023 balance of $6.2 million.  For the first quarter of 2024, criticized and classified loans were relatively stable. Criticized loans represented 2.64% of loans at March 31, 2024 compared to 2.86% at March 31, 2023 and 2.60% at December 31, 2023, while classified loans were 2.19% at March 31, 2024 compared to 2.28% at March 31, 2023 and 2.09% at December 31, 2023.

Noninterest Revenue

Noninterest revenue was $83.8 million for the first quarter of 2024 compared with $34.5 million for the first quarter of 2023 and negative $311.5 million for the fourth quarter of 2023.  Adjusted noninterest revenue(1) for the first quarter of 2024 was $83.8 million, compared with $85.7 million for the first quarter of 2023 and $73.1 million for the fourth quarter of 2023. Adjusted noninterest revenue(1) for the first quarter of 2024 excludes an insignificant amount of securities losses while fourth quarter 2023 adjusted noninterest revenue(1) excludes the securities portfolio restructuring loss of $384.5 million. The linked quarter increase in adjusted noninterest revenue(1) was driven primarily by growth in mortgage banking revenue, as well as deposit service revenue.  The increase in mortgage revenue was in both production and servicing revenue, as well as positive variance related to the mortgage servicing rights (MSR) valuation. 

Credit card, debit card and merchant fee revenue was $12.2 million for the first quarter of 2024, compared with $11.9 million for the first quarter of 2023 and $12.9 million for the fourth quarter of 2023.  Deposit service charge revenue was $18.4 million for the first quarter of 2024 compared with $16.5 million for the first quarter of 2023 and $11.2 million for the fourth quarter of 2023. Deposit service charge revenue for the fourth quarter of 2023 included an adjustment of approximately $8 million, resulting from deposit service charge changes. These changes are expected to result in a reduction in revenue of approximately $3 million per year and are fully reflected in the first quarter 2024 run rate.

Other noninterest revenue was $24.0 million for the first quarter of 2024, compared with $29.8 million for the first quarter of 2023 and $27.6 million for the fourth quarter of 2023.  The decline compared to the fourth quarter of 2023 was driven by a number of smaller variances including declines in death benefits on bank-owned life insurance, payroll processing revenue, and equity investment valuations.

Mortgage production and servicing revenue totaled $6.5 million for the first quarter of 2024, compared with $8.4 million for the first quarter of 2023 and $3.9 million for the fourth quarter of 2023. The net MSR valuation adjustment was insignificant for the first quarter of 2024, compared with a negative $2.3 million for the first quarter of 2023 and a negative $5.1 million for the fourth quarter of 2023. Mortgage origination volume for the first quarter of 2024 was $437.2 million, compared with $454.2 million for the first quarter of 2023 and $434.7 million for the fourth quarter of 2023.

Noninterest Expense

Noninterest expense for the first quarter of 2024 was $263.2 million, compared with $284.6 million for the first quarter of 2023 and $329.4 million for the fourth quarter of 2023. Adjusted noninterest expense(1) for the first quarter of 2024 was $263.5 million, compared with $270.4 million for the first quarter of 2023 and $269.8 million for the fourth quarter of 2023.  The adjusted efficiency ratio(1) was 60.1% for the first quarter of 2024, meaningfully improved from 66.0% for the fourth quarter of 2023 and 61.3% for the first quarter of 2023.

The $6.2 million, or 2.3%, linked quarter decline in adjusted noninterest expense(1) was driven by declines in data processing and software expense as well as other noninterest expense, partially offset by a seasonal increase in salaries and employee benefits.  Salaries and employee benefits increased $8.6 million compared to the fourth quarter of 2023 with nearly half of the increase as a result of seasonal increases in payroll tax expense resulting from the annual FICA reset and 401(k) expense related to annual incentive compensation payouts.  Additionally, certain other incentive based accruals increased as a result of strong operating performance.  Data processing and software expense declined $2.9 million compared to the fourth quarter of 2023 primarily as a result of certain seasonal and volume related factors as well as timing.  Other noninterest expense declined $11.4 million on an adjusted basis compared to the fourth quarter of 2023.  This decline included decreases in a number of expense items including legal fees, advertising and public relations, contributions and operational losses.

Capital Management

Total shareholders' equity was $5.2 billion at March 31, 2024 compared with $4.5 billion at March 31, 2023 and $5.2 billion at December 31, 2023. Estimated regulatory capital ratios at March 31, 2024 included Common Equity Tier 1 capital of 11.7%, Tier 1 capital of 12.1%, Total risk-based capital of 14.5%, and Tier 1 leverage capital of 9.5%. During the first quarter of 2024, the Company repurchased 657,593 shares of common stock under its 10 million share authorization for 2024.  Outstanding common shares were 182.7 million as of March 31, 2024.

Summary

Rollins concluded, "I'm excited to see the hard work of teammates across our organization bear fruit in the financial results we've reported this quarter.  Our efforts to improve our balance sheet profile, improve operating efficiency, and produce disciplined growth have contributed to meaningful improvement in virtually all of our key performance metrics.  We've also been able to maintain stable credit quality metrics and a strong capital base.  I'm encouraged by this momentum as we look to the remainder of the year and beyond."

Key Transactions

Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million, subject to customary purchase price adjustments. The Transaction resulted in net capital creation of approximately $620 million, including a net gain on sale of approximately $520 million.  The gain along with Cadence Insurance's historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations.  Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations.  The purchase price and related gain remain subject to additional adjustments in accordance with the purchase agreement.

Conference Call and Webcast

The Company will conduct a conference call to discuss its first quarter 2024 financial results on April 23, 2024, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing 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, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.

1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 20 of this news release.


(2) See Table 14 for detail on non-routine income and expenses.

Forward-Looking Statements

Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale (the "Cadence Insurance Transaction") on the Company's financial condition and future net income and earnings per share, the amount of net after-tax proceeds expected to be received by the Company from the Cadence Insurance Transaction, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies (including the Cadence Insurance Transaction), including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.

In addition, the Company faces risks from the failure to achieve the expected impact on the Company's financial condition; and risks associated with unexpected costs or liabilities relating to the Cadence Insurance Transaction.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

Table 1

Selected Financial Data

(Unaudited)



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Earnings Summary:






Interest revenue

$       637,113

$       615,187

$       595,459

$       573,395

$       526,126

Interest expense

283,205

280,582

266,499

239,868

171,862

Net interest revenue

353,908

334,605

328,960

333,527

354,264

Provision for credit losses

22,000

38,000

17,000

15,000

10,000

Net interest revenue, after provision for credit losses

331,908

296,605

311,960

318,527

344,264

Noninterest revenue

83,786

(311,460)

73,989

86,664

34,463

Noninterest expense

263,207

329,367

274,442

267,466

284,647

Income (loss) from continuing operations before income taxes

152,487

(344,222)

111,507

137,725

94,080

Income tax expense (benefit)

35,509

(80,485)

24,355

30,463

21,073

Income (loss) from continuing operations

116,978

(263,737)

87,152

107,262

73,007

Income from discontinued operations, net of taxes

—

522,801

5,431

6,766

3,622

Net income

116,978

259,064

92,583

114,028

76,629

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$       114,606

$       256,692

$         90,211

$       111,656

$         74,257







Balance Sheet - Period End Balances





Total assets

$  48,313,863

$  48,934,510

$  48,523,010

$  48,838,660

$  51,693,096

Total earning assets

43,968,692

44,192,887

43,727,058

44,010,411

46,806,214

Available for sale securities

8,306,589

8,075,476

9,643,231

10,254,580

10,877,879

Loans and leases, net of unearned income

32,882,616

32,497,022

32,520,593

32,556,708

31,282,594

Allowance for credit losses (ACL)

472,575

468,034

446,859

466,013

453,727

Net book value of acquired loans

6,011,007

6,353,344

6,895,487

7,357,174

7,942,980

Unamortized net discount on acquired loans

23,715

26,928

30,761

37,000

41,748

Total deposits

38,120,226

38,497,137

38,335,878

38,701,669

39,406,454

Total deposits and repurchase agreements

38,214,616

38,948,653

39,198,467

39,492,427

40,177,789

Other short-term borrowings

3,500,000

3,500,000

3,500,223

3,500,226

5,700,228

Subordinated and long-term debt

430,123

438,460

449,323

449,733

462,144

Total shareholders' equity

5,189,932

5,167,843

4,395,257

4,485,850

4,490,417

Total shareholders' equity, excluding AOCI (1)

5,981,265

5,929,672

5,705,178

5,648,925

5,572,303

Common shareholders' equity

5,022,939

5,000,850

4,228,264

4,318,857

4,323,424

Common shareholders' equity, excluding AOCI (1)

$    5,814,272

$    5,762,679

$    5,538,185

$    5,481,932

$    5,405,310







Balance Sheet - Average Balances





Total assets

$  48,642,540

$  48,444,176

$  48,655,138

$  49,067,121

$  48,652,201

Total earning assets

44,226,077

43,754,664

44,003,639

44,229,519

43,817,318

Available for sale securities

8,269,708

9,300,714

10,004,441

10,655,791

11,354,457

Loans and leases, net of unearned income

32,737,574

32,529,030

32,311,572

31,901,096

30,891,640

Total deposits

38,421,272

38,215,379

38,465,975

38,934,793

38,904,048

Total deposits and repurchase agreements

38,630,620

38,968,397

39,293,030

39,708,963

39,632,023

Other short-term borrowings

3,500,000

3,503,320

3,510,942

3,541,985

3,326,196

Subordinated and long-term debt

434,579

443,251

449,568

455,617

462,385

Total shareholders' equity

5,194,048

4,507,343

4,505,162

4,539,353

4,396,461

Common shareholders' equity

$    5,027,055

$    4,340,350

$    4,338,169

$    4,372,360

$    4,229,468







Nonperforming Assets:






Non-performing loans and leases (NPL) (2)

241,007

216,141

150,038

157,243

160,615

Other real estate owned and other assets

5,280

6,246

2,927

2,857

5,327

Non-performing assets (NPA)

$       246,287

$       222,387

$       152,965

$       160,100

$       165,942


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 25.

(2)     At March 31, 2024, $59.9 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA.

 

Table 2

Selected Financial Ratios



Quarter Ended


Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Financial Ratios and Other Data:






Return on average assets from continuing operations (2)

0.97 %

(2.16) %

0.71 %

0.88 %

0.61 %

Return on average assets (2)

0.97 %

2.12 %

0.75 %

0.93 %

0.64 %

Adjusted return on average assets from continuing operations (1)(2)

0.97

0.62

0.82

0.92

1.03

Return on average common shareholders' equity from continuing operations (2)

9.17

(24.32)

7.75

9.62

6.77

Return on average common shareholders' equity (2)

9.17

23.46

8.25

10.24

7.12

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

9.15

6.65

8.93

10.10

11.58

Return on average tangible common equity from continuing operations (1)(2)

12.94

(36.79)

11.75

14.55

10.44

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

12.94

35.49

12.50

15.49

10.97

Adjusted return on average tangible common equity from continuing operations (1)(2)

12.92

10.06

13.53

15.27

17.84

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

1.44

(2.51)

1.05

1.25

0.87

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

1.44

1.13

1.18

1.30

1.41

Net interest margin-fully taxable equivalent

3.22

3.04

2.98

3.03

3.29

Net interest rate spread-fully taxable equivalent

2.40

2.25

2.21

2.29

2.65

Efficiency ratio fully tax equivalent (1)

60.05

NM   

67.17

60.51

73.03

Adjusted efficiency ratio fully tax equivalent (1)

60.12

66.01

63.64

58.97

61.31

Loan/deposit ratio

86.26 %

84.41 %

84.83 %

84.12 %

79.38 %

Full time equivalent employees

5,322

5,333

6,160

6,479

6,567







Credit Quality Ratios:






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

0.24 %

0.29 %

0.42 %

0.16 %

0.02 %

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

0.27

0.46

0.21

0.19

0.13

ACL to loans and leases, net

1.44

1.44

1.37

1.43

1.45

ACL to NPL

196.08

216.54

297.83

296.36

282.49

NPL to loans and leases, net

0.73

0.67

0.46

0.48

0.51

NPA to total assets

0.51

0.45

0.32

0.33

0.32







Equity Ratios:






Total shareholders' equity to total assets

10.74 %

10.56 %

9.06 %

9.19 %

8.69 %

Total common shareholders' equity to total assets

10.40

10.22

8.71

8.84

8.36

Tangible common shareholders' equity to tangible assets (1)

7.60

7.44

5.86

6.00

5.66

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

9.13

8.90

8.41

8.25

7.65







Capital Adequacy (3):






Common Equity Tier 1 capital

11.7 %

11.6 %

10.3 %

10.1 %

10.1 %

Tier 1 capital

12.1

12.1

10.8

10.5

10.6

Total capital

14.5

14.3

12.9

12.7

12.8

Tier 1 leverage capital

9.5

9.3

8.6

8.5

8.4


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 25.

(2)     Annualized.

(3)     Current quarter regulatory capital ratios are estimated.

NM - Not meaningful

 

Table 3

Selected Financial Information



Quarter Ended


Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Common Share Data:






Diluted earnings (losses) per share from continuing operations

$         0.62

$       (1.46)

$         0.46

$         0.57

$         0.38

Adjusted earnings per share from continuing operations (1)

0.62

0.40

0.53

0.60

0.66

Diluted earnings per share

0.62

1.41

0.49

0.61

0.40

Cash dividends per share

0.250

0.235

0.235

0.235

0.235

Book value per share

27.50

27.35

23.15

23.65

23.67

Tangible book value per share (1)

19.48

19.32

15.09

15.56

15.55

Market value per share (last)

29.00

29.59

21.22

19.88

20.76

Market value per share (high)

30.03

31.45

25.87

21.73

28.18

Market value per share (low)

24.99

19.67

19.00

16.95

19.24

Market value per share (average)

27.80

24.40

22.56

19.73

24.88

Dividend payout ratio from continuing operations

40.48 %

(16.13) %

51.09 %

41.23 %

61.84 %

Adjusted dividend payout ratio from continuing operations (1)

40.32 %

58.75 %

44.34 %

39.17 %

35.61 %

Total shares outstanding

182,681,325

182,871,775

182,611,075

182,626,229

182,684,578

Average shares outstanding - diluted

185,574,130

182,688,190

184,645,004

183,631,570

183,908,798







Yield/Rate:






(Taxable equivalent basis)






Loans, loans held for sale, and leases

6.50 %

6.48 %

6.39 %

6.24 %

6.00 %

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

6.46

6.43

6.31

6.18

5.87

Available for sale securities:






Taxable

3.11

2.45

2.07

2.09

1.80

Tax-exempt

4.25

3.78

3.23

3.21

3.21

Other investments

5.48

5.41

5.36

5.05

4.64

Total interest earning assets and revenue

5.80

5.59

5.38

5.21

4.88

Deposits

2.45

2.32

2.14

1.87

1.28

Interest bearing demand and money market

3.11

3.02

2.79

2.49

2.03

Savings

0.57

0.56

0.56

0.51

0.36

Time

4.42

4.22

3.98

3.69

2.24

Total interest bearing deposits

3.21

3.10

2.88

2.58

1.86

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

4.86

4.33

4.27

3.97

3.73

Short-term FHLB borrowings

—

—

3.54

5.24

4.66

Short-term BTFP borrowings

4.84

5.04

5.15

5.15

—

Total interest bearing deposits and short-term borrowings

3.39

3.33

3.16

2.90

2.20

Long-term debt

4.35

4.18

4.22

4.23

4.27

Total interest bearing liabilities

3.40

3.34

3.17

2.92

2.23

Interest bearing liabilities to interest earning assets

75.73 %

76.08 %

75.74 %

74.57 %

71.24 %

Net interest income tax equivalent adjustment (in thousands)

$          636

$          987

$       1,081

$       1,063

$       1,051


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 - 25.

NM - Not meaningful

 

Table 4

Consolidated Balance Sheets

(Unaudited)



As of

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

ASSETS






Cash and due from banks

$         427,543

$         798,177

$         594,787

$         722,625

$         660,431

Interest bearing deposits with other banks and Federal funds sold

2,609,931

3,434,088

1,400,858

1,005,889

4,449,631

Available for sale securities, at fair value

8,306,589

8,075,476

9,643,231

10,254,580

10,877,879

Loans and leases, net of unearned income

32,882,616

32,497,022

32,520,593

32,556,708

31,282,594

Allowance for credit losses

472,575

468,034

446,859

466,013

453,727

Net loans and leases

32,410,041

32,028,988

32,073,734

32,090,695

30,828,867

Loans held for sale, at fair value

169,556

186,301

162,376

193,234

196,110

Premises and equipment, net

822,666

802,133

789,698

804,732

801,463

Goodwill

1,367,785

1,367,785

1,367,785

1,367,785

1,367,785

Other intangible assets, net

96,126

100,191

104,596

109,033

115,113

Bank-owned life insurance

645,167

642,840

639,073

634,985

631,174

Other assets

1,458,459

1,498,531

1,590,769

1,486,070

1,609,232

Assets of discontinued operations

—

—

156,103

169,032

155,411

Total Assets

$    48,313,863

$    48,934,510

$    48,523,010

$    48,838,660

$    51,693,096

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      8,820,468

$      9,232,068

$      9,648,191

$    10,223,508

$    11,517,037

Interest bearing

18,945,982

19,276,596

18,334,551

18,088,711

18,146,678

 Savings

2,694,777

2,720,913

2,837,348

2,983,709

3,226,685

 Time deposits

7,658,999

7,267,560

7,515,788

7,405,741

6,516,054

Total deposits

38,120,226

38,497,137

38,335,878

38,701,669

39,406,454

Securities sold under agreement to repurchase

94,390

451,516

862,589

790,758

771,335

Other short-term borrowings

3,500,000

3,500,000

3,500,223

3,500,226

5,700,228

Subordinated and long-term debt

430,123

438,460

449,323

449,733

462,144

Other liabilities

979,192

879,554

876,195

806,305

763,912

Liabilities of discontinued operations

—

—

103,545

104,119

98,606

Total Liabilities

43,123,931

43,766,667

44,127,753

44,352,810

47,202,679

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,703

457,179

456,528

456,566

456,711

Capital surplus

2,724,587

2,743,066

2,733,003

2,724,021

2,715,981

Accumulated other comprehensive loss

(791,333)

(761,829)

(1,309,921)

(1,163,075)

(1,081,886)

Retained earnings

2,632,982

2,562,434

2,348,654

2,301,345

2,232,618

Total Shareholders' Equity

5,189,932

5,167,843

4,395,257

4,485,850

4,490,417

Total Liabilities & Shareholders' Equity

$    48,313,863

$    48,934,510

$    48,523,010

$    48,838,660

$    51,693,096

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 


(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

ASSETS






Cash and due from banks

$         557,009

$         443,504

$         362,479

$         402,744

$         500,507

Interest bearing deposits with other banks and Federal funds sold

3,146,439

1,811,686

1,571,973

1,605,594

1,524,358

Available for sale securities, at fair value

8,269,708

9,300,714

10,004,441

10,655,791

11,354,457

Loans and leases, net of unearned income

32,737,574

32,529,030

32,311,572

31,901,096

30,891,640

Allowance for credit losses

473,849

447,879

459,698

457,027

442,486

Net loans and leases

32,263,725

32,081,151

31,851,874

31,444,069

30,449,154

Loans held for sale, at fair value

72,356

113,234

115,653

67,038

46,863

Premises and equipment, net

808,473

795,164

811,095

804,526

799,077

Goodwill

1,367,785

1,367,916

1,367,785

1,367,785

1,367,784

Other intangible assets, net

98,350

102,765

107,032

113,094

117,518

Bank-owned life insurance

643,189

640,439

636,335

632,489

630,601

Other assets

1,415,506

1,787,603

1,826,471

1,973,991

1,861,882

Total Assets

$    48,642,540

$    48,444,176

$    48,655,138

$    49,067,121

$    48,652,201

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      9,072,619

$      9,625,912

$      9,921,617

$    10,725,108

$    12,203,079

                     Interest bearing

19,303,845

18,292,826

17,970,463

17,997,618

19,009,345

 Savings

2,696,452

2,758,977

2,913,027

3,088,174

3,363,236

 Time deposits

7,348,356

7,537,664

7,660,868

7,123,893

4,328,388

Total deposits

38,421,272

38,215,379

38,465,975

38,934,793

38,904,048

Securities sold under agreement to repurchase

209,348

753,018

827,055

774,170

727,975

Other short-term borrowings

3,500,000

3,503,320

3,510,942

3,541,985

3,326,196

Subordinated and long-term debt

434,579

443,251

449,568

455,617

462,385

Other liabilities

883,293

1,021,865

896,436

821,203

835,136

Total Liabilities

43,448,492

43,936,833

44,149,976

44,527,768

44,255,740

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,437

456,636

456,557

456,755

456,354

Capital surplus

2,733,902

2,733,985

2,726,686

2,717,866

2,710,501

Accumulated other comprehensive loss

(777,940)

(1,279,235)

(1,175,077)

(1,087,389)

(1,174,723)

Retained earnings

2,614,656

2,428,964

2,330,003

2,285,128

2,237,336

Total Shareholders' Equity

5,194,048

4,507,343

4,505,162

4,539,353

4,396,461

Total Liabilities & Shareholders' Equity

$    48,642,540

$    48,444,176

$    48,655,138

$    49,067,121

$    48,652,201

 

Table 6

Consolidated Statements of Income

(Unaudited)



Quarter Ended

(Dollars in thousands, except per share data)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

INTEREST REVENUE:






Loans and leases

$     528,940

$     531,340

$     520,126

$     496,262

$     457,084

Available for sale securities:






Taxable

63,405

55,801

50,277

53,531

48,512

Tax-exempt

687

1,927

2,375

2,427

2,477

Loans held for sale

1,184

1,418

1,468

961

603

Short-term investments

42,897

24,701

21,213

20,214

17,450

Total interest revenue

637,113

615,187

595,459

573,395

526,126

INTEREST EXPENSE:






Interest bearing demand deposits and money market accounts

149,403

139,144

126,296

111,938

95,344

Savings

3,801

3,918

4,108

3,915

3,014

Time deposits

80,670

80,143

76,867

65,517

23,950

Federal funds purchased and securities sold under agreement to repurchase

2,523

8,254

9,004

7,656

7,667

Short-term debt

42,109

44,451

45,438

46,036

37,015

Subordinated and long-term debt

4,699

4,672

4,786

4,806

4,872

Total interest expense

283,205

280,582

266,499

239,868

171,862

Net interest revenue

353,908

334,605

328,960

333,527

354,264

Provision for credit losses

22,000

38,000

17,000

15,000

10,000

Net interest revenue, after provision for credit losses

331,908

296,605

311,960

318,527

344,264







NONINTEREST REVENUE:






Mortgage banking

6,443

(1,137)

5,684

8,356

6,076

Credit card, debit card and merchant fees

12,162

12,902

12,413

12,617

11,851

Deposit service charges

18,338

11,161

16,867

17,208

16,482

Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

Wealth management

22,833

22,576

21,079

21,741

21,532

Other noninterest income

24,019

27,562

17,882

26,673

29,783

Total noninterest revenue

83,786

(311,460)

73,989

86,664

34,463







NONINTEREST EXPENSE:






Salaries and employee benefits

156,650

148,081

161,627

159,276

165,738

Occupancy and equipment

28,640

28,009

27,069

28,106

27,787

Data processing and software

30,028

32,922

29,127

27,289

31,105

Merger expense

—

—

—

122

5,070

Amortization of intangibles

4,066

4,405

4,436

6,081

4,466

Deposit insurance assessments

8,414

45,733

10,425

7,705

8,361

Pension settlement expense

—

11,226

600

—

—

Other noninterest expense

35,409

58,991

41,158

38,887

42,120

Total noninterest expense

263,207

329,367

274,442

267,466

284,647

Income (loss) from continuing operations before taxes

152,487

(344,222)

111,507

137,725

94,080

Income tax expense (benefit)

35,509

(80,485)

24,355

30,463

21,073

Income (loss) from continuing operations

$     116,978

$   (263,737)

$       87,152

$     107,262

$       73,007

Income from discontinued operations

—

706,129

7,242

9,238

4,982

Income tax expense from discontinued operations

—

183,328

1,811

2,472

1,360

Income from discontinued operations, net of taxes

—

522,801

5,431

6,766

3,622

Net income

116,978

259,064

92,583

114,028

76,629

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$     114,606

$     256,692

$       90,211

$     111,656

$       74,257

Diluted earnings (losses) per common share from continuing operations

$          0.62

$        (1.46)

$          0.46

$          0.57

$          0.38

Diluted earnings per common share

$          0.62

$          1.41

$          0.49

$          0.61

$          0.40

 

Table 7

Selected Loan Portfolio Data

(Unaudited)



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$     9,121,457

$     8,935,598

$     9,199,024

$     9,636,481

$     9,159,387

Owner occupied

4,442,357

4,349,060

4,361,530

4,358,000

4,278,468

Total commercial and industrial

13,563,814

13,284,658

13,560,554

13,994,481

13,437,855

Commercial real estate






Construction, acquisition and development

3,864,351

3,910,962

3,819,307

3,744,114

3,703,137

Income producing

5,783,943

5,736,871

5,720,606

5,596,134

5,368,676

Total commercial real estate

9,648,294

9,647,833

9,539,913

9,340,248

9,071,813

Consumer






Residential mortgages

9,447,675

9,329,692

9,186,179

8,989,614

8,536,032

Other consumer

222,833

234,839

233,947

232,365

236,894

Total consumer

9,670,508

9,564,531

9,420,126

9,221,979

8,772,926

Total loans and leases, net of unearned income

$   32,882,616

$   32,497,022

$   32,520,593

$   32,556,708

$   31,282,594







NON-PERFORMING ASSETS






Non-performing Loans and Leases






Commercial and industrial






Non-real estate

$        149,683

$        131,559

$          67,962

$          72,592

$          65,783

Owner occupied

5,962

7,097

6,486

7,541

9,089

Total commercial and industrial

155,645

138,656

74,448

80,133

74,872

Commercial real estate






Construction, acquisition and development

3,787

1,859

4,608

4,496

1,850

Income producing

19,428

17,485

12,251

19,205

20,616

Total commercial real estate

23,215

19,344

16,859

23,701

22,466

Consumer






Residential mortgages

61,886

57,881

58,488

53,171

62,748

Other consumer

261

260

243

238

529

Total consumer

62,147

58,141

58,731

53,409

63,277

Total non-performing loans and leases

$        241,007

$        216,141

$        150,038

$        157,243

$        160,615







Other real estate owned and repossessed assets

5,280

6,246

2,927

2,857

5,327

Total non-performing assets

$        246,287

$        222,387

$        152,965

$        160,100

$        165,942







Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA

$          59,897

$          49,551

$          42,046

$          35,322

$          30,218







Loans and leases 90+ days past due, still accruing

$          30,048

$          22,466

$            9,152

$            4,412

$            5,164

 

Table 8

Allowance for Credit Losses

(Unaudited)



Quarter Ended

(Dollars in thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      468,034

$      446,859

$      466,013

$      453,727

$      440,347

Charge-offs:






Commercial and industrial

(16,997)

(21,385)

(34,959)

(13,598)

(2,853)

Commercial real estate

(2,244)

(2,290)

(931)

(126)

(1,988)

Consumer

(2,395)

(3,229)

(1,608)

(1,916)

(2,189)

Total loans charged-off

(21,636)

(26,904)

(37,498)

(15,640)

(7,030)

Recoveries:






Commercial and industrial

1,312

2,117

2,240

1,360

3,406

Commercial real estate

150

95

201

618

779

Consumer

715

867

903

948

970

Total recoveries

2,177

3,079

3,344

2,926

5,155

Net (charge-offs) recoveries

(19,459)

(23,825)

(34,154)

(12,714)

(1,875)

Adoption of new ASU related to modified loans (3)

—

—

—

—

255

Provision for credit losses related to loans and leases

24,000

45,000

15,000

25,000

15,000

Balance, end of period

$      472,575

$      468,034

$      446,859

$      466,013

$      453,727







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

$ 32,737,574

$ 32,529,030

$ 32,311,572

$ 31,901,096

$ 30,891,640

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

0.24 %

0.29 %

0.42 %

0.16 %

0.02 %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$          8,551

$        15,551

$        13,551

$        23,551

$        28,551

 (Reversal) provision for credit losses for unfunded commitments

(2,000)

(7,000)

2,000

(10,000)

(5,000)

Balance, end of period

$          6,551

$          8,551

$        15,551

$        13,551

$        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, 2024

(In thousands)

Pass

Special
Mention

Substandard

Doubtful

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$    8,615,472

$     101,824

$     307,065

$            16

$       93,335

$         3,745

$  9,121,457

Owner occupied

4,381,398

20,682

37,894

—

1,275

1,108

4,442,357

Total commercial and industrial

12,996,870

122,506

344,959

16

94,610

4,853

13,563,814

Commercial real estate








Construction, acquisition and development

3,846,801

2,668

13,468

—

1,414

—

3,864,351

Income producing

5,575,662

25,360

165,680

—

17,241

—

5,783,943

Total commercial real estate

9,422,463

28,028

179,148

—

18,655

—

9,648,294

Consumer








Residential mortgages

9,371,570

—

74,531

—

—

1,574

9,447,675

Other consumer

222,245

—

588

—

—

—

222,833

Total consumer

9,593,815

—

75,119

—

—

1,574

9,670,508

Total loans and leases, net of unearned income

$  32,013,148

$     150,534

$     599,226

$            16

$     113,265

$         6,427

$  32,882,616




December 31, 2023

(In thousands)

Pass

Special
Mention

Substandard

Loss

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$  8,450,809

$     101,607

$     294,895

$              13

$       84,457

$         3,817

$  8,935,598

Owner occupied

4,287,190

32,409

27,070

—

1,275

1,116

4,349,060

Total commercial and industrial

12,737,999

134,016

321,965

13

85,732

4,933

13,284,658

Commercial real estate








Construction, acquisition and development

3,894,551

3,364

13,047

—

—

—

3,910,962

Income producing

5,527,388

23,727

170,217

—

15,539

—

5,736,871

Total commercial real estate

9,421,939

27,091

183,264

—

15,539

—

9,647,833

Consumer








Residential mortgages

9,258,002

4,066

66,050

—

—

1,574

9,329,692

Other consumer

234,367

—

472

—

—

—

234,839

Total consumer

9,492,369

4,066

66,522

—

—

1,574

9,564,531

Total loans and leases, net of unearned income

$ 31,652,307

$     165,173

$     571,751

$              13

$     101,271

$         6,507

$ 32,497,022

 

Table 10

Geographical Loan Information

(Unaudited)



March 31, 2024

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$  413,301

$  146,430

$  542,282

$  539,664

$  328,789

$  533,880

$    70,147

$  321,934

$    3,740,402

$  2,484,628

$  9,121,457

Owner occupied

352,403

245,047

284,283

307,074

296,196

615,518

96,778

168,039

1,735,411

341,608

4,442,357

Total commercial and industrial

765,704

391,477

826,565

846,738

624,985

1,149,398

166,925

489,973

5,475,813

2,826,236

13,563,814

Commercial real estate












Construction, acquisition and
development

196,775

79,748

425,582

528,889

40,494

203,222

39,893

175,446

1,665,187

509,115

3,864,351

Income producing

442,236

265,621

360,230

531,762

213,757

425,447

203,475

295,180

2,250,912

795,323

5,783,943

Total commercial real estate

639,011

345,369

785,812

1,060,651

254,251

628,669

243,368

470,626

3,916,099

1,304,438

9,648,294

Consumer












Residential mortgages

1,232,302

390,552

667,203

418,748

460,552

1,155,102

191,468

726,161

3,989,512

216,075

9,447,675

Other consumer

29,673

17,565

5,040

6,869

11,195

84,452

1,770

17,503

44,403

4,363

222,833

Total consumer

1,261,975

408,117

672,243

425,617

471,747

1,239,554

193,238

743,664

4,033,915

220,438

9,670,508

Total

$  2,666,690

$  1,144,963

$  2,284,620

$  2,333,006

$  1,350,983

$  3,017,621

$  603,531

$  1,704,263

$  13,425,827

$  4,351,112

$  32,882,616













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

$      5,960

$  (20,629)

$  112,739

$    (1,734)

$  (29,188)

$    29,176

$    15,668

$  (50,779)

$  203,310

$  121,071

$  385,594

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

0.90 %

(7.12) %

20.88 %

(0.30) %

(8.51) %

3.93 %

10.72 %

(11.64) %

6.18 %

11.51 %

4.77 %



December 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

$      417,687

$      158,759

$      503,957

$      528,205

$      346,840

$      532,593

$        62,507

$      373,991

$   3,718,233

$   2,292,826

$   8,935,598

Owner occupied

345,679

247,584

281,750

313,532

292,347

591,611

90,227

167,464

1,676,272

342,594

4,349,060

Total commercial and industrial

763,366

406,343

785,707

841,737

639,187

1,124,204

152,734

541,455

5,394,505

2,635,420

13,284,658

Commercial real estate












Construction, acquisition and
development

202,977

79,365

363,597

472,953

54,985

194,535

46,014

182,393

1,799,697

514,446

3,910,962

Income producing

446,290

273,000

369,897

605,160

212,148

435,089

208,216

296,918

2,080,393

809,760

5,736,871

Total commercial real estate

649,267

352,365

733,494

1,078,113

267,133

629,624

254,230

479,311

3,880,090

1,324,206

9,647,833

Consumer












Residential mortgages

1,216,942

388,396

647,117

408,459

462,264

1,147,388

179,119

716,384

3,898,525

265,098

9,329,692

Other consumer

31,155

18,488

5,563

6,431

11,587

87,229

1,780

17,892

49,397

5,317

234,839

Total consumer

1,248,097

406,884

652,680

414,890

473,851

1,234,617

180,899

734,276

3,947,922

270,415

9,564,531

Total loans and leases, net of
unearned income

$   2,660,730

$   1,165,592

$   2,171,881

$   2,334,740

$   1,380,171

$   2,988,445

$      587,863

$   1,755,042

$ 13,222,517

$   4,230,041

$ 32,497,022

 

Table 11

Noninterest Revenue and Expense

(Unaudited)



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

NONINTEREST REVENUE:






Mortgage banking excl. MSR and MSR hedge market value adjustment

$        6,460

$        3,931

$        5,842

$        6,774

$        8,379

MSR and MSR hedge market value adjustment

(17)

(5,068)

(158)

1,582

(2,303)

Credit card, debit card and merchant fees

12,162

12,902

12,413

12,617

11,851

Deposit service charges

18,338

11,161

16,867

17,208

16,482

Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

Trust income

11,322

11,301

10,574

10,084

10,553

Annuity fees

1,705

1,839

1,882

1,702

2,192

Brokerage commissions and fees

9,806

9,436

8,623

9,955

8,787

Bank-owned life insurance

3,946

4,728

4,108

3,811

3,647

Other miscellaneous income

20,073

22,834

13,774

22,862

26,136

Total noninterest revenue

$      83,786

$  (311,460)

$      73,989

$      86,664

$      34,463







NONINTEREST EXPENSE:






Salaries and employee benefits

$    156,650

$    148,081

$    161,627

$    159,276

$    165,738

Occupancy and equipment

28,640

28,009

27,069

28,106

27,787

Deposit insurance assessments

8,414

45,733

10,425

7,705

8,361

Pension settlement expense

—

11,226

600

—

—

Advertising and public relations

4,224

12,632

5,671

5,618

4,241

Foreclosed property expense

268

915

270

323

980

Telecommunications

1,545

1,356

1,520

1,365

1,534

Travel and entertainment

2,236

3,146

2,442

2,850

2,565

Data processing and software

30,028

32,922

29,127

27,289

31,105

Professional, consulting and outsourcing

3,935

5,194

5,017

5,371

4,311

Amortization of intangibles

4,066

4,405

4,436

6,081

4,466

Legal

3,682

13,724

3,316

1,765

1,288

Merger expense

—

—

—

122

5,070

Postage and shipping

2,205

1,907

2,292

1,941

2,303

Other miscellaneous expense

17,314

20,117

20,630

19,654

24,898

Total noninterest expense

$    263,207

$    329,367

$    274,442

$    267,466

$    284,647







 

Table 12

Average Balance and Yields

(Unaudited)



Quarter Ended


March 31, 2024


December 31, 2023


March 31, 2023

(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

$ 32,737,574

$   525,878

6.46 %


$  32,529,030

$   527,688

6.44 %


$ 30,891,640

$   447,449

5.87 %

Accretion income on acquired loans


3,515

0.04



4,127

0.05



10,028

0.13

Loans held for sale

72,356

1,184

6.58


113,234

1,418

4.97


46,863

603

5.22

Investment securities












Taxable

8,187,342

63,405

3.11


9,044,724

55,801

2.45


10,957,786

48,512

1.80

Tax-exempt

82,366

870

4.25


255,990

2,439

3.78


396,671

3,135

3.21

Total investment securities

8,269,708

64,275

3.13


9,300,714

58,240

2.48


11,354,457

51,647

1.84

Other investments

3,146,439

42,897

5.48


1,811,686

24,701

5.41


1,524,358

17,450

4.64

Total interest-earning assets

44,226,077

637,749

5.80 %


43,754,664

616,174

5.59 %


43,817,318

527,177

4.88 %

Other assets

4,890,312




5,137,391




5,277,369



Allowance for credit losses

473,849




447,879




442,486



Total assets

$ 48,642,540




$  48,444,176




$ 48,652,201















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 19,303,845

$   149,403

3.11 %


$  18,292,826

$   139,144

3.02 %


$ 19,009,345

95,344

2.03 %

Savings deposits

2,696,452

3,801

0.57


2,758,977

3,918

0.56


3,363,236

3,014

0.36

Time deposits

7,348,356

80,670

4.42


7,537,664

80,143

4.22


4,328,388

23,950

2.24

Total interest-bearing deposits

29,348,653

233,874

3.21


28,589,467

223,205

3.10


26,700,969

122,308

1.86

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

209,348

2,528

4.86


756,336

8,257

4.33


832,831

7,669

3.73

Short-term FHLB borrowings

—

—

—


2

—

—


3,221,340

37,013

4.66

  Short-term BTFP borrowings

3,500,000

42,104

4.84


3,500,000

44,448

5.04


—

—

—

Long-term borrowings

434,579

4,699

4.35


443,251

4,672

4.18


462,385

4,872

4.27

Total interest-bearing liabilities

33,492,580

283,205

3.40 %


33,289,056

280,582

3.34 %


31,217,525

171,862

2.23 %

Noninterest-bearing liabilities:












Demand deposits

9,072,619




9,625,912




12,203,079



Other liabilities

883,293




1,021,865




835,136



Total liabilities

43,448,492




43,936,833




44,255,740



Shareholders' equity

5,194,048




4,507,343




4,396,461



Total liabilities and shareholders' equity

$ 48,642,540




$  48,444,176




$ 48,652,201



Net interest income/net interest spread


354,544

2.40 %



335,592

2.25 %



355,315

2.65 %

Net yield on earning assets/net interest margin



3.22 %




3.04 %




3.29 %

Taxable equivalent adjustment:












Loans and investment securities


(636)




(987)




(1,051)


Net interest revenue


$   353,908




$   334,605




$   354,264


 

Table 13

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      106,824

$      116,266

$      111,417

$      106,942

$      109,744

Originations of servicing assets

2,736

2,636

4,065

1,990

1,385

Changes in fair value:






Due to payoffs/paydowns

(2,656)

(3,035)

(2,104)

(2,621)

(1,078)

Due to update in valuation assumptions

4,781

(9,043)

2,888

5,106

(3,109)

Fair value, end of period

$      111,685

$      106,824

$      116,266

$      111,417

$      106,942







MORTGAGE BANKING REVENUE:






Origination

$          3,165

$          1,040

$          2,031

$          3,495

$          3,344

Servicing

5,951

5,926

5,915

5,900

6,113

Payoffs/Paydowns

(2,656)

(3,035)

(2,104)

(2,621)

(1,078)

Total mortgage banking revenue excluding MSR

6,460

3,931

5,842

6,774

8,379

Market value adjustment on MSR

4,781

(9,043)

2,888

5,106

(3,109)

Market value adjustment on MSR Hedge

(4,798)

3,975

(3,046)

(3,524)

806

Total mortgage banking revenue

$          6,443

$        (1,137)

$          5,684

$          8,356

$          6,076







Mortgage loans serviced

$   7,764,936

$   7,702,592

$   7,643,885

$   7,550,676

$   7,633,236

MSR/mortgage loans serviced

1.44 %

1.39 %

1.52 %

1.48 %

1.40 %



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

AVAILABLE FOR SALE SECURITIES, at fair value






U.S. Treasury securities

$         239,402

$         465,018

$             1,996

$             8,959

$           15,849

Obligations of U.S. government agencies

318,233

332,011

1,004,374

1,112,326

1,358,350

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






Residential pass-through:






Guaranteed by GNMA

72,034

75,662

73,649

79,261

83,649

Issued by FNMA and FHLMC

4,254,227

4,387,101

5,541,895

5,895,704

6,164,294

Other residential mortgage-back securities

1,210,617

727,434

146,063

157,294

166,449

Commercial mortgage-backed securities

1,694,967

1,742,837

2,271,680

2,357,047

2,427,808

Total MBS

7,231,845

6,933,034

8,033,287

8,489,306

8,842,200

Obligations of states and political subdivisions

134,643

137,624

392,252

433,316

447,731

Other domestic debt securities

67,421

67,197

71,741

71,356

73,557

Foreign debt securities

315,045

140,592

139,581

139,317

140,192

Total available for sale securities

$      8,306,589

$      8,075,476

$      9,643,231

$    10,254,580

$    10,877,879

 

Table 14

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Unaudited)


Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted income from continuing operations, adjusted income from continuing operations available to common shareholders, pre-tax pre-provision net revenue from continuing operations, adjusted pre-tax pre-provision net revenue from continuing operations, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity from continuing operations, return on average tangible common equity, adjusted return on average tangible common equity from continuing operations, adjusted return on average tangible common equity, adjusted return on average assets from continuing operations, adjusted return on average assets, adjusted return on average common shareholders' equity from continuing operations, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio from continuing operations, and adjusted dividend payout ratio from continuing operations. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.

 


Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Adjusted Income from Continuing Operations Available to Common Shareholders






Income (loss) from continuing operations

$   116,978

$   (263,737)

$       87,152

$     107,262

$       73,007

Plus: Merger expense

—

—

—

122

5,070

  Incremental merger related expense

—

7,500

—

1,671

8,960

  Gain on extinguishment of debt

(576)

(652)

—

(1,140)

—

  Restructuring and other nonroutine expenses

251

41,522

9,596

6,219

212

  Pension settlement expense

—

11,226

600

—

—

Less:   Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

  Nonroutine (losses) gains, net

—

—

(6,653)

—

—

  Tax adjustment

(74)

105,275

3,944

1,599

15,393

Adjusted income from continuing operations

116,736

75,108

99,992

112,466

123,117

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Adjusted income from continuing operations available to common shareholders

$   114,364

$       72,736

$       97,620

$     110,094

$     120,745



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Pre-Tax Pre-Provision Net Revenue from Continuing Operations






Income (loss) from continuing operations

$   116,978

$   (263,737)

$       87,152

$     107,262

$       73,007

Plus:   Provision for credit losses

22,000

38,000

17,000

15,000

10,000

     Income tax expense (benefit)

35,509

(80,485)

24,355

30,463

21,073

Pre-tax pre-provision net revenue from continuing operations

$   174,487

$   (306,222)

$     128,507

$     152,725

$     104,080



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing Operations






Income (loss) from continuing operations

$   116,978

$   (263,737)

$       87,152

$     107,262

$       73,007

Plus:    Provision for credit losses

22,000

38,000

17,000

15,000

10,000

  Merger expense

—

—

—

122

5,070

  Incremental merger related expense

—

7,500

—

1,671

8,960

  Gain on extinguishment of debt

(576)

(652)

—

(1,140)

—

  Restructuring and other nonroutine expenses

251

41,522

9,596

6,219

212

  Pension settlement expense

—

11,226

600

—

—

  Income tax expense (benefit)

35,509

(80,485)

24,355

30,463

21,073

Less:   Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

  Nonroutine (losses) gains, net

$            —

$              —

$       (6,653)

$              —

$              —

Adjusted pre-tax pre-provision net revenue from continuing operations

$   174,171

$     137,898

$     145,292

$     159,528

$     169,583



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Total Adjusted Noninterest Revenue






Total noninterest revenue

$     83,786

$   (311,460)

$       73,989

$       86,664

$       34,463

Less:   Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

Nonroutine gains (losses), net

—

—

(6,653)

—

—

Total adjusted noninterest revenue

$     83,795

$       73,064

$       80,578

$       86,595

$       85,724



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Total Adjusted Revenue






Net interest revenue

$   353,908

$     334,605

$     328,960

$     333,527

$     354,264

Total Adjusted Noninterest Revenue






Total noninterest revenue

83,786

(311,460)

73,989

86,664

34,463

Less:   Security (losses) gains, net

(9)

(384,524)

64

69

(51,261)

  Nonroutine gains (losses), net

—

—

(6,653)

—

—

Total adjusted noninterest revenue

83,795

73,064

80,578

86,595

85,724

Total adjusted revenue

$   437,703

$     407,669

$     409,538

$     420,122

$     439,988



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Total Adjusted Noninterest Expense






Total noninterest expense

$   263,207

$     329,367

$     274,442

$     267,466

$     284,647

Less:   Merger expense

—

—

—

122

5,070

  Incremental merger related expense

—

7,500

—

1,671

8,960

  Gain on extinguishment of debt

(576)

(652)

—

(1,140)

—

  Restructuring and other nonroutine expenses

251

41,522

9,596

6,219

212

  Pension settlement expense

—

11,226

600

—

—

Total adjusted noninterest expense

$   263,532

$     269,771

$     264,246

$     260,594

$     270,405



Quarter Ended

(In thousands)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

Total Tangible Assets, Excluding AOCI






Total assets

$  48,313,863

$  48,934,510

$  48,523,010

$  48,838,660

$  51,693,096

Less:  Goodwill

1,367,785

1,367,785

1,367,785

1,367,785

1,367,785

 Other identifiable intangible assets

96,126

100,191

104,596

109,033

115,113

Total tangible assets

46,849,952

47,466,534

47,050,629

47,361,842

50,210,198

Less: AOCI

(791,333)

(761,829)

(1,309,921)

(1,163,075)

(1,081,886)

Total tangible assets, excluding AOCI

$  47,641,285

$  48,228,363

$  48,360,550

$  48,524,917

$  51,292,084



Quarter Ended

(Dollars in thousands, except per share data)

Mar 2024

Dec 2023

Sep 2023

Jun 2023

Mar 2023

PERIOD END BALANCES:






Total Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,189,932

$5,167,843

$4,395,257

$4,485,850

$4,490,417

Less: AOCI

(791,333)

(761,829)

(1,309,921)

(1,163,075)

(1,081,886)

Total shareholders' equity, excluding AOCI

$5,981,265

$5,929,672

$5,705,178

$5,648,925

$5,572,303







Common Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,189,932

$5,167,843

$4,395,257

$4,485,850

$4,490,417

Less: preferred stock

166,993

166,993

166,993

166,993

166,993

Common shareholders' equity

5,022,939

5,000,850

4,228,264

4,318,857

4,323,424

Less: AOCI

(791,333)

(761,829)

(1,309,921)

(1,163,075)

(1,081,886)

Common shareholders' equity, excluding AOCI

$5,814,272

$5,762,679

$5,538,185

$5,481,932

$5,405,310







Total Tangible Common Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,189,932

$5,167,843

$4,395,257

$4,485,850

$4,490,417

Less:  Goodwill

1,367,785

1,367,785

1,367,785

1,367,785

1,367,785

 Other identifiable intangible assets

96,126

100,191

104,596

109,033

115,113

 Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

3,559,028

3,532,874

2,755,883

2,842,039

2,840,526

Less: AOCI

(791,333)

(761,829)

(1,309,921)

(1,163,075)

(1,081,886)

Total tangible common shareholders' equity, excluding AOCI

$4,350,361

$4,294,703

$4,065,804

$4,005,114

$3,922,412







AVERAGE BALANCES:






Total Tangible Common Shareholders' Equity






Total shareholders' equity

$5,194,048

$4,507,343

$4,505,162

$4,539,353

$4,396,461

Less:   Goodwill

1,367,785

1,367,916

1,367,785

1,367,785

1,367,784

  Other identifiable intangible assets

98,350

102,765

107,032

113,094

117,518

  Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

$3,560,920

$2,869,669

$2,863,352

$2,891,481

$2,744,166







Total average assets

$48,642,540

$48,444,176

$48,655,138

$49,067,121

$48,652,201

Total shares of common stock outstanding

182,681,325

182,871,775

182,611,075

182,626,229

182,684,578

Average shares outstanding-diluted

185,574,130

182,688,190

184,645,004

183,631,570

183,908,798







Tangible common shareholders' equity to tangible assets (1)

7.60 %

7.44 %

5.86 %

6.00 %

5.66 %

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

9.13

8.90

8.41

8.25

7.65

Return on average tangible common equity from continuing operations (3)

12.94

(36.79)

11.75

14.55

10.44

Return on average tangible common equity (4)

12.94

35.49

12.50

15.49

10.97

Adjusted return on average tangible common equity from continuing operations (5)

12.92

10.06

13.53

15.27

17.84

Adjusted return on average assets from continuing operations (6)

0.97

0.62

0.82

0.92

1.03

Adjusted return on average common shareholders' equity from continuing operations (7)

9.15

6.65

8.93

10.10

11.58

Pre-tax pre-provision net revenue from continuing operations to total average assets (8)

1.44

(2.51)

1.05

1.25

0.87

Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (9)

1.44

1.13

1.18

1.30

1.41

Tangible book value per common share (10)

$      19.48

$      19.32

$      15.09

$      15.56

$      15.55

Tangible book value per common share, excluding AOCI (11)

23.81

23.48

22.26

21.93

21.47

Adjusted earnings from continuing operations per common share (12)

$        0.62

$        0.40

$        0.53

$        0.60

$        0.66

Adjusted dividend payout ratio from continuing operations (13)

40.32 %

58.75 %

44.34 %

39.17 %

35.61 %

 

Definitions of Non-GAAP Measures:

(1)

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

(2)

Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other 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 from continuing operations is defined by the Company as annualized income available to common shareholders from continuing operation divided by average tangible common shareholders equity.

(4)

Return on average tangible common equity is defined by the Company as annualized income available to common shareholders divided by average tangible common shareholders equity.

(5)

Adjusted return on average tangible common equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average tangible common shareholders' equity.

(6)

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

(7)

Adjusted return on average common shareholders' equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average common shareholders' equity.

(8)

Pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue from continuing operations divided by total average assets.

(9)

Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue from continuing operations divided by total average assets adjusted for items included in the definition and calculation of adjusted income.

(10)

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

(11)

Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding.

(12)

Adjusted earnings from continuing operations per common share is defined by the Company as adjusted income available to common shareholders from continuing operations divided by average common shares outstanding-diluted.

(13)

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

Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent Definitions

The efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment from continuing operations. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense from continuing operations.

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SOURCE Cadence Bank

FAQ

What was Cadence Bank's net income for the first quarter of 2024?

Cadence Bank reported a net income of $114.6 million for the first quarter of 2024.

What was the net organic loan growth for Cadence Bank in the first quarter of 2024?

Cadence Bank achieved net organic loan growth of $385.6 million in the first quarter of 2024.

How did Cadence Bank's net interest margin change in the first quarter of 2024?

Cadence Bank's net interest margin improved to 3.22% in the first quarter of 2024.

What was the total adjusted revenue increase for Cadence Bank in the first quarter of 2024?

Cadence Bank's total adjusted revenue increased by 7.4% in the first quarter of 2024.

What was the adjusted efficiency ratio for Cadence Bank in the first quarter of 2024?

Cadence Bank's adjusted efficiency ratio improved by 589 basis points to 60.1% in the first quarter of 2024.

Did Cadence Bank repurchase any shares in the first quarter of 2024?

Yes, Cadence Bank repurchased over 657,000 shares of common stock in the first quarter of 2024.

What was Cadence Bank's provision for credit losses in the first quarter of 2024?

Cadence Bank's provision for credit losses was $22.0 million in the first quarter of 2024.

How did Cadence Bank's noninterest revenue change in the first quarter of 2024?

Cadence Bank's noninterest revenue was $83.8 million in the first quarter of 2024, driven by growth in mortgage banking revenue.

What was Cadence Bank's total shareholders' equity at the end of the first quarter of 2024?

Cadence Bank's total shareholders' equity was $5.2 billion at the end of the first quarter of 2024.

Stock CADE logo
Cadence Bank

NYSE:CADE

CADE Rankings

#1086 Ranked by Market Cap
#1175 Ranked by Dividends

CADE Latest News

Nov 20, 2024
Cadence Bank Welcomes Brad Silcox as President of Asset Management & Trust Group
Oct 23, 2024
Cadence Bank Declares Quarterly Common and Preferred Dividends
Oct 21, 2024
Cadence Bank Announces Third Quarter 2024 Financial Results
Sep 24, 2024
Cadence Bank Announces Third Quarter 2024 Earnings Webcast Schedule
Jul 24, 2024
Cadence Bank Declares Quarterly Common and Preferred Dividends

CADE Stock Data

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