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Cadence Bank Announces Fourth Quarter 2022 and Annual Financial Results

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Cadence Bank (NYSE: CADE) reported strong financial results for 2022, achieving a net income of $453.7 million, or $2.46 per diluted share. Adjusted net income reached $542.3 million, or $2.94 per diluted share. The bank generated organic loan growth of $3.5 billion, reflecting a 12.9% increase, and improved its net interest margin to 3.15%. For Q4 2022, net income stood at $95.6 million, with adjusted net income of $142.9 million. The bank maintained stable credit quality metrics, with non-performing loans down to 0.36% of total loans. Cadence also completed its merger integration, enhancing operational efficiency.

Positive
  • Net income increased to $453.7 million for 2022, up from $185.7 million in 2021.
  • Adjusted net income for 2022 reached $542.3 million, compared to $348.5 million in 2021.
  • Organic loan growth of $3.5 billion, or 12.9%, was achieved in 2022.
  • Net interest margin improved to 3.15%, up from 2.96% in 2021.
Negative
  • Total deposits declined by $861.1 million over the year.
  • Noninterest revenue decreased from $124.5 million in Q3 2022 to $114.9 million in Q4 2022.

HOUSTON and TUPELO, Miss., Jan. 30, 2023 Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter and year ended December 31, 2022.

Annual highlights for 2022 included:

  • Achieved net income available to common shareholders of $453.7 million, or $2.46 per diluted common share, and adjusted net income available to common shareholders of $542.3 million, or $2.94 per diluted common share.
  • Reported annual adjusted pre-tax pre-provision net revenue (PPNR) of $722.3 million, or 1.52% of average assets.
  • Generated net organic loan growth of $3.5 billion, or 12.9%.
  • Net interest margin improved to 3.15%, compared to 2.96% for 2021, as a result of increasing interest rates and a shift in the earning asset mix.
  • Continued stable credit quality metrics; net recoveries for the year, and total non-performing loans and leases declined to 0.36% of net loans and leases.
  • The adjusted efficiency ratio improved from 61.6% in 2021 to 60.7% in 2022.
  • Repurchased 6.1 million shares of outstanding Company common stock.
  • Completed the core system conversion and operational integration of the legacy Cadence merger (as defined below), including the re-branding of the franchise across the Company footprint.

Highlights for the fourth quarter of 2022 included:

  • Achieved quarterly net income available to common shareholders of $95.6 million, or $0.52 per diluted common share, and adjusted net income available to common shareholders of $142.9 million, or $0.78 per diluted common share.
  • Reported $195.5 million in adjusted PPNR, or 1.62% of average assets, an increase of 3.0% compared to the third quarter of 2022.
  • Generated net organic loan growth of $1.1 billion for the fourth quarter of 2022, or 14.3% on an annualized basis, while total deposits were flat quarter over quarter.
  • Net interest margin improved to 3.33%, an increase of 5 basis points from the linked quarter, driven by continued improvement in earning asset yields partially offset by increasing deposit rates and borrowing costs.
  • Stable credit quality reflected in quarterly annualized net recoveries of 0.07% of average loans and leases; results for the quarter included a provision for credit losses of $6.0 million due to loan growth.
  • Continued improvement in operating efficiency reflected in an improvement in the adjusted efficiency ratio to 58.7% from 60.3% for the third quarter of 2022.

"Our financial results for both the fourth quarter and full year of 2022 reflect a number of key accomplishments," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company. "Our bankers have continued to generate meaningful business, including net loan growth of $1.1 billion, or 14% annualized for the fourth quarter, which resulted in total net loan growth of $3.5 billion, or 13% for the year.  We were also pleased with our ability to hold our deposits flat for the quarter despite continued pressure on liquidity across the industry. Also, our net interest margin improved for the fifth consecutive quarter."

Rollins continued, "Credit quality has continued to be a positive story for our Company.  While we recorded a provision for credit losses of $6.0 million for the quarter, we reported net recoveries of 0.07% annualized for the quarter and total non-performing assets declined both for the quarter and the full year.  Additionally, our focus on improving operating efficiency is evident in the continued improvement in our adjusted efficiency ratio throughout the course of 2022."

Earnings Summary

The fourth quarter 2021 merger with Cadence Bancorporation impacts year-over-year comparisons. See "Recent Merger Transaction" in this release for more information.

For the year ended December 31, 2022, the Company reported net income available to common shareholders of $453.7 million, or $2.46 per diluted common share, compared with $185.7 million, or $1.54 per diluted common share, for the year ended December 31, 2021. The Company reported adjusted net income available to common shareholders of $542.3 million, or $2.94 per diluted common share, for the year ended December 31, 2022 compared with $348.5 million, or $2.89 per diluted common share, for the year ended December 31, 2021.  Additionally, the Company reported adjusted PPNR of $722.3 million, or 1.52% of average assets, for the year ended December 31, 2022 compared with $453.0 million, or 1.51% of average assets, for the year ended December 31, 2021.

For the fourth quarter of 2022, the Company reported net income available to common shareholders of $95.6 million, or $0.52 per diluted common share, compared with a net loss available to common shareholders of $37.0 million, or $0.22 per diluted common share, for the fourth quarter of 2021 and net income available to common shareholders of $121.0 million, or $0.66 per diluted common share, for the third quarter of 2022. Adjusted net income available to common shareholders was $142.9 million, or $0.78 per diluted common share, for the fourth quarter of 2022, compared with $104.1 million, or $0.63 per diluted common share, for the fourth quarter of 2021 and $143.7 million, or $0.78 per diluted common share, for the third quarter of 2022.  Additionally, the Company reported adjusted PPNR of $195.5 million, or 1.62% of average assets on an annualized basis, for the fourth quarter of 2022 compared to $136.4 million, or 1.32% of average assets on an annualized basis, for the fourth quarter of 2021 and $189.8 million, or 1.58% of average assets on an annualized basis, for the third quarter of 2022.

The improvement in adjusted PPNR for the quarter was attributable to an increase in net interest revenue, reflecting continued net interest margin improvement and loan growth, and a decline in adjusted non-interest expense, partially offset by lower noninterest revenue driven by lower mortgage banking and insurance commissions.  The provision for credit losses offset this net improvement, essentially resulting in flat adjusted net income for the linked quarter.

Net Interest Revenue

Net interest revenue was $359.4 million for the fourth quarter of 2022, compared to $271.2 million for the fourth quarter of 2021 and $355.4 million for the third quarter of 2022, an increase of $4.0 million or 1.13% from linked quarter. The fully taxable equivalent (FTE) net interest margin was 3.33% for the fourth quarter of 2022, compared with 2.90% for the fourth quarter of 2021 and 3.28% for the third quarter of 2022.

Net interest revenue for the fourth quarter of 2022 included $9.2 million in accretion revenue related to acquired loans and leases, adding approximately 9 basis points to the net interest margin. Accretion increased $1.1 million from $8.1 million for the third quarter of 2022, which added approximately 7 basis points to the third quarter 2022 net interest margin. Excluding the impact of accretion, the linked quarter net interest margin increased by 3 basis points.

The increase in net interest revenue in the fourth quarter of 2022 compared to the linked quarter reflected continued improvement in earning asset yields which outpaced acceleration in rates on deposits and other funding.

Yields on net loans, loans held for sale, and leases excluding accretion, were 5.41% for the fourth quarter of 2022, up 71 basis points from 4.70% for the third quarter of 2022, while yields on total interest earning assets were 4.38% for the fourth quarter of 2022, up 64 basis points from 3.74% for the third 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.  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 0.76% for the fourth quarter of 2022, compared with 0.35% for the third quarter of 2022, reflecting both the impact of increasing rates and continued competition for core deposits.   Our total deposit beta was 28% for the fourth quarter of 2022 and 17% for the full year 2022 (cycle-to-date).

Balance Sheet Activity

Loans and leases, net of unearned income, increased $1.1 billion during the fourth quarter, or 14.3% annualized, and $3.5 billion for the full year, or 12.9%, to $30.3 billion. Loan growth for the quarter was spread across the Corporate, Community and Mortgage teams, as well as across our footprint. 

Total investment securities of $11.9 billion decreased $497.8 million during the fourth quarter and $3.7 billion for the full year, reflecting both fair valuation declines in the rising rate environment as well as portfolio cash flows. We have continued to use cash flows from the securities portfolio to support loan growth.

Total deposits were essentially flat for the fourth quarter at $39.0 billion, while full year total deposits declined $861.1 million, reflecting the impact of inflation on our consumer accounts and the decline of industry-wide deposits. The fourth quarter of 2022 ended with a loan to deposit ratio of 77.9% and securities to total assets of 24.5%, reflecting continued improvement in earning asset mix while maintaining strong balance sheet liquidity. Noninterest bearing deposits represented 32.7% of total deposits at the end of the fourth quarter of 2022, declining from 35.5% at September 30, 2022 as approximately $1.1 billion in non-interest bearing balances shifted into interest bearing deposits.

Provision for Credit Losses and Allowance for Credit Losses

Credit quality metrics for the fourth quarter of 2022 reflect stability in overall credit quality, highlighted by net recoveries for the quarter (the sixth quarter of net recoveries in the prior seven quarters), a decline in total non-performing assets, and a modest provision for credit losses necessary to support continued growth in loans and unfunded commitments. 

Total non-performing assets declined $10.4 million, or 8.2%, in the fourth quarter from $126.5 million at September 30, 2022 to $116.1 million at December 31, 2022. Total non-performing loans and leases were $109.4 million at December 31, 2022, or 0.36% of total net loans and leases, compared to the September 30, 2022 balance of $118.1 million, or 0.40% of total net loans and leases. Other real estate owned and other repossessed assets also declined to $6.7 million at December 31, 2022, a decrease of $1.7 million or 19.7% from the September 30, 2022 balance of $8.4 million.

Net recoveries for the fourth quarter of 2022 were $5.0 million, or 0.07% of net loans and leases on an annualized basis, compared with net recoveries of $4.8 million for the fourth quarter of 2021 and net charge-offs of $6.7 million for the third quarter of 2022. The provision for credit losses for the fourth quarter of 2022 was $6.0 million, compared with a provision for credit losses of $133.6 million for fourth quarter of 2021 (which included a day one accounting provision of $132.1 million related to the legacy Cadence merger) and no recorded provision for credit losses for the third quarter of 2022. The fourth quarter 2022 provision included $4 million for unfunded commitments and $2 million related to loans. The allowance for credit losses was $440.3 million, or 1.45% of net loans and leases at December 31, 2022, compared with $433.4 million, or 1.48% of net loans and leases at September 30, 2022.

Noninterest Revenue

Noninterest revenue was $114.9 million for the fourth quarter of 2022, compared with $103.9 million for the fourth quarter of 2021 and $124.5 million for the third quarter of 2022. The linked quarter decline was driven primarily by policy renewal seasonality in insurance commission revenue as well as a negative mortgage servicing rights market value adjustment.

Insurance commission revenue totaled $34.7 million for the fourth quarter of 2022, compared with $32.6 million for the fourth quarter of 2021 and $39.9 million for the third quarter of 2022. The linked quarter decline was driven by routine annual seasonality related to policy renewal cycles within the book of business. Compared to the fourth quarter of 2021, insurance commission revenue increased 6.3%. 

Credit card, debit card and merchant fee revenue was $15.8 million for the fourth quarter of 2022, compared with $12.0 million for the fourth quarter of 2021 and $14.5 million for the third quarter of 2022.  Deposit service charge revenue was $16.9 million for the fourth quarter of 2022 compared with $17.0 million for the fourth quarter of 2021 and $19.1 million for the third quarter of 2022.  The linked quarter decline was driven by an an increase in the earnings credit rate on corporate analysis accounts as well as NSF representment refunds due to policy changes.  Other noninterest revenue was $26.4 million for the fourth quarter of 2022, compared with $15.7 million for the fourth quarter of 2021 and $22.7 million for the third quarter of 2022 with the increase primarily attributable to increased bank-owned life insurance proceeds and equity investment valuation adjustments.

Mortgage origination volume for the fourth quarter of 2022 was $554.5 million, compared with $817.7 million for the fourth quarter of 2021 and $769.9 million for the third quarter of 2022. Mortgage production and servicing revenue totaled $5.4 million for the fourth quarter of 2022, compared with $8.0 million for the fourth quarter of 2021 and $4.7 million for the third quarter of 2022. The mortgage servicing rights valuation adjustment was negative $2.8 million for the fourth quarter of 2022, compared with a positive $2.6 million for the fourth quarter of 2021 and a positive $4.3 million for the third quarter of 2022 with the variances due to continued volatility in the interest rate environment.

Noninterest Expense

Noninterest expense for the fourth quarter of 2022 was $340.7 million, compared with $289.2 million for the fourth quarter of 2021 and $319.7 million for the third quarter of 2022. Adjusted noninterest expense for the fourth quarter of 2022 was $279.3 million, compared with $239.1 million for the fourth quarter of 2021 and $290.2 million for the third quarter of 2022. The adjusted efficiency ratio was 58.7% for the fourth quarter of 2022, representing improvement from 60.3% for the third quarter of 2022. The decline in adjusted noninterest expense compared to the linked quarter was driven primarily by a decline in salaries and employee benefits expense. Salaries and benefits expense declined $7.3 million compared to the third quarter of 2022 due primarily to revised estimates of various insurance accruals and employee benefit obligations impacted by higher discount rates given the increase in interest rates.

Adjusted noninterest expense for the fourth quarter of 2022 excludes $53.0 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 $20.3 million for the fourth quarter of 2022, compared with $44.8 million for the fourth quarter of 2021 and $19.7 million for the third quarter of 2022. Merger expense for the fourth quarter of 2022 was comprised primarily of system and technology related expenses as a result of the core system conversion that took place in the quarter, as well as compensation related items. Incremental merger related expenses for the fourth quarter of 2022 totaled $32.7 million compared to $6.9 million in the prior quarter and primarily included costs related to the franchise-wide rebranding in October 2022, as well as employee retention and technology related expenses. Adjusted noninterest expense for the fourth quarter of 2022 also excludes a charge of $6.1 million in accordance with ASC 715 "Compensation - Retirement Benefits" to reflect the settlement accounting impact of elevated lump sum retirement pension payouts during 2022 as well as $2.3 million in branch closing expense.

Capital Management

Total shareholders' equity was $4.31 billion at December 31, 2022 compared with $5.25 billion at December 31, 2021 and $4.17 billion at September 30, 2022. While the securities portfolio valuation stabilized during the fourth quarter, the year-over-year decline is primarily due to a decline in accumulated other comprehensive income (loss) ("AOCI") resulting from an increase in unrealized losses in the available-for-sale securities portfolio.

Estimated regulatory capital ratios at December 31, 2022 included Common Equity Tier 1 capital of 10.2%, Tier 1 capital of 10.7%, Total risk-based capital of 12.8%, and Tier 1 leverage capital of 8.4%.

During the fourth quarter of 2022, the Company did not repurchase shares of its common stock pursuant to its share repurchase program, which expired on December 30, 2022. Outstanding company shares were 182.4 million shares as of December 31, 2022, a reduction of 5.9 million shares since December 31, 2021.  During December 2022, the board approved a share repurchase authorization for 10 million shares of Company common stock for the 2023 year.

Summary

Rollins concluded, "Reflecting back on 2022, it was a year of tremendous progress. We reported continued growth in our businesses and improvement in our financial performance while also completing the final steps of our merger integration.   Our  rebranding has sparked an energy across our franchise, and we are excited to build on this spirit in 2023 and continue to bring value to our teammates, customers and shareholders."

Recent Merger Transaction

Cadence Bancorporation (NYSE: CADE)

On October 29, 2021, the Company completed the merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as legacy Cadence), pursuant to which legacy Cadence was merged with and into the Company (the Cadence Merger). Legacy Cadence operated 99 full-service banking offices in the southeast. As of October 29, 2021, legacy Cadence reported total assets of $18.8 billion, total loans of $11.6 billion and total deposits of $16.3 billion. Under the terms of the definitive merger agreement, each legacy Cadence shareholder received 0.70 shares of the Company's common stock in exchange for each share of Cadence common stock they held. In addition, legacy Cadence paid a one-time special dividend of $1.25 per share on October 28, 2021. In connection with the closing of the Cadence merger, the Company changed its name from BancorpSouth Bank to Cadence Bank and also changed its NYSE ticker symbol from BXS to CADE.

The Company completed the planned conversion and consolidation of the core operating systems in the fourth quarter of 2022 and  is working to complete related post-conversion reconciliations. These efforts are not complete as of the date of this earnings announcement; however, Cadence presently anticipates they will be complete prior to the scheduled filing of the Form 10-K for 2022.  While the Company does not currently expect adjustments to the financial information as of December 31, 2022 as presented herein, certain reported amounts reflected in this announcement could be subject to change.

For more information regarding the Cadence Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation (FDIC) on October 29, 2021 and the 2021 Annual Report Form 10-K filed with the FDIC.

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 23 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its fourth quarter 2022 financial results on January 31, 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 approximately 400 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; 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 the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; 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.

Risks specifically related to the Cadence Merger include, but are not limited to: the possibility that the anticipated benefits of the merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies, or as a result of the strength of the economy and competitive factors in the areas where the combined company does business; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies within the expected timeframes, or at all, and to successfully integrate legacy Cadence's operations and those of the Company or because such integration may be more difficult, time consuming, or costly than expected, including as a result of unexpected factors or events; the risk that revenues following the Cadence Merger may be lower than expected; the ability of the Company and legacy Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the Cadence Merger; and the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Cadence Merger. There are also risks of adverse outcomes for any legal proceedings that may be instituted against the Company or legacy Cadence in respect of the Cadence Merger; the risk that any announcements relating to the Cadence Merger could have adverse effects on the market price of the capital stock of the combined company; and risks arising from the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the Cadence Merger and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports, and other filings the Company files with the FDIC.

The 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, 2021, 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


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Earnings Summary:









Interest revenue

$   473,548

$   405,559

$   349,555

$   331,930

$   290,626


$ 1,560,593

$   882,049

Interest expense

114,188

50,205

24,789

20,108

19,414


209,290

76,322

Net interest revenue

359,360

355,354

324,766

311,822

271,212


1,351,303

805,727

Provision for credit losses

6,000

—

1,000

—

133,562


7,000

138,062

Net interest revenue, after provision for credit losses

353,360

355,354

323,766

311,822

137,650


1,344,303

667,665

Noninterest revenue

114,873

124,491

125,234

128,435

103,854


493,032

378,153

Noninterest expense

340,671

319,734

285,888

291,667

289,194


1,237,960

798,890

Income (loss) before income taxes

127,562

160,111

163,112

148,590

(47,690)


599,375

246,928

Income tax expense (benefit)

29,628

36,713

36,154

33,643

(13,033)


136,138

51,766

Net income (loss)

97,934

123,398

126,958

114,947

(34,657)


463,237

195,162

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


9,488

9,488

Net income (loss) available to common shareholders

$     95,562

$   121,026

$   124,586

$   112,575

$    (37,029)


$   453,749

$   185,674










Balance Sheet - Period End Balances








Total assets

$  48,653,414

$  47,699,660

$  47,747,708

$  47,204,061

$  47,669,751


$  48,653,414

$  47,669,751

Total earning assets

43,722,544

42,832,355

43,093,974

42,744,225

43,503,089


43,722,544

43,503,089

Available-for-sale securities

11,944,096

12,441,894

13,450,621

14,371,606

15,606,470


11,944,096

15,606,470

Loans and leases, net of unearned income

30,349,277

29,296,450

28,360,485

27,189,666

26,882,988


30,349,277

26,882,988

Allowance for credit losses (ACL)

440,347

433,363

440,112

438,738

446,415


440,347

446,415

Net book value of acquired loans

8,754,526

8,841,588

9,721,672

11,020,251

11,968,278


8,754,526

11,968,278

Unamortized net discount on acquired loans

58,162

58,887

65,350

72,620

77,711


58,162

77,711

Total deposits

38,956,614

39,003,946

40,189,083

40,568,055

39,817,673


38,956,614

39,817,673

Total deposits and repurchase agreements

39,665,350

39,682,280

40,838,260

41,271,615

40,504,861


39,665,350

40,504,861

Federal funds purchased and short-term FHLB advances

3,300,231

2,495,000

1,200,000

—

595,000


3,300,231

595,000

Subordinated and long-term debt

462,554

463,291

465,073

465,695

482,411


462,554

482,411

Total shareholders' equity

4,311,374

4,166,925

4,437,925

4,643,757

5,247,987


4,311,374

5,247,987

Total shareholders' equity, excluding AOCI (1)

5,533,912

5,464,737

5,374,270

5,307,757

5,387,356


5,533,912

5,387,356

Common shareholders' equity

4,144,381

3,999,932

4,270,932

4,476,764

5,080,994


4,144,381

5,080,994

Common shareholders' equity, excluding AOCI (1)

$ 5,366,919

$ 5,297,744

$ 5,207,277

$ 5,140,764

$ 5,220,363


$ 5,366,919

$ 5,220,363










Balance Sheet - Average Balances








Total assets

$  47,790,494

$  47,595,557

$  47,064,829

$  47,679,850

$  40,995,513


$  47,533,157

$  29,994,648

Total earning assets

42,976,050

43,079,481

42,688,497

43,515,166

37,210,403


43,063,362

27,282,382

Available-for-sale securities

12,156,803

13,252,828

13,941,127

15,070,524

12,954,547


13,596,372

9,309,947

Loans and leases, net of unearned income

29,812,924

28,872,156

27,848,097

27,106,733

22,745,093


28,418,658

17,055,429

Total deposits

38,372,354

39,600,886

39,396,028

40,565,103

34,759,687


39,477,906

25,228,601

Total deposits and repurchase agreements

39,033,328

40,256,109

40,062,095

41,259,136

35,479,807


40,146,852

25,936,769

Subordinated and long-term debt

462,927

464,843

465,447

466,842

441,165


465,004

341,170

Total shareholders' equity

4,215,585

4,506,655

4,523,189

5,062,231

4,508,594


4,574,403

3,337,575

Common shareholders' equity

$ 4,048,592

$ 4,339,662

$ 4,356,196

$ 4,895,238

$ 4,341,601


$ 4,407,410

$ 3,170,582










Nonperforming Assets:









Nonaccrual loans and leases

$     98,745

$     89,931

$     89,368

$     91,031

$   122,104


$     98,745

$   122,104

Loans and leases 90+ days past due, still accruing

2,068

11,984

19,682

20,957

24,784


2,068

24,784

Restructured loans and leases, still accruing

8,598

16,200

7,385

7,292

6,903


8,598

6,903

Non-performing loans and leases (NPL)

109,411

118,115

116,435

119,280

153,791


109,411

153,791

Other real estate owned and other assets

6,725

8,376

14,399

28,401

33,021


6,725

33,021

Non-performing assets (NPA)

$   116,136

$   126,491

$   130,834

$   147,681

$   186,812


$   116,136

$   186,812



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 26.

 

Table 2

Selected Financial Ratios



Quarter Ended


Year-to-date


Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Financial Ratios and Other Data:









Return on average assets (2)

0.81 %

1.03 %

1.08 %

0.98 %

(0.34) %


0.97 %

0.65 %

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

1.21

1.22

1.16

1.05

1.03


1.16

1.19

Return on average common shareholders' equity (2)

9.36

11.06

11.47

9.33

(3.38)


10.30

5.86

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

14.00

13.13

12.36

10.07

9.51


12.30

10.99

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

15.42

17.40

18.11

13.87

(4.71)


16.12

8.66

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

23.04

20.66

19.50

14.98

13.24


19.26

16.26

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

1.11

1.33

1.40

1.26

0.83


1.28

1.28

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

1.62

1.58

1.51

1.36

1.32


1.52

1.51

Net interest margin-fully taxable equivalent

3.33

3.28

3.06

2.92

2.90


3.15

2.96

Net interest rate spread-fully taxable equivalent

2.84

3.05

2.94

2.81

2.78


2.90

2.82

Efficiency ratio fully tax equivalent (1)

71.67

66.49

63.38

66.10

76.94


66.97

67.34

Adjusted efficiency ratio fully tax equivalent (1)

58.69

60.33

60.46

63.52

63.54


60.70

61.63

Loan/deposit ratio

77.91 %

75.11 %

70.57 %

67.02 %

67.52 %


77.91 %

67.52 %

Full time equivalent employees

6,572

6,629

6,659

6,568

6,595


6,572

6,595










Credit Quality Ratios:









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

(0.07) %

0.09 %

(0.02) %

(0.01) %

(0.08) %


— %

(0.03) %

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

0.08

—

0.01

—

2.33


0.02

0.81

ACL to loans and leases, net

1.45

1.48

1.55

1.61

1.66


1.45

1.66

ACL to NPL

402.47

366.90

377.99

367.82

290.27


402.47

290.27

NPL to loans and leases, net

0.36

0.40

0.41

0.44

0.57


0.36

0.57

NPA to total assets

0.24

0.27

0.27

0.31

0.39


0.24

0.39










Equity Ratios:









Total shareholders' equity to total assets

8.86 %

8.74 %

9.29 %

9.84 %

11.01 %


8.86 %

11.01 %

Total common shareholders' equity to total assets

8.52

8.39

8.94

9.48

10.66


8.52

10.66

Tangible common shareholders' equity to tangible assets (1)

5.42

5.24

5.82

6.31

7.54


5.42

7.54

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

7.82

7.84

7.70

7.65

7.82


7.82

7.82










Capital Adequacy (3):









Common Equity Tier 1 capital

10.2 %

10.3 %

10.3 %

10.6 %

11.1 %


10.2 %

11.1 %

Tier 1 capital

10.7

10.7

10.8

11.1

11.6


10.7

11.6

Total capital

12.8

12.8

13.0

13.3

13.9


12.8

13.9

Tier 1 leverage capital

8.4

8.4

8.4

8.2

9.9


8.4

9.9



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 26.

(2)

Quarterly ratios are annualized.

(3)

Current quarter regulatory capital ratios are estimated.

 

Table 3

Selected Financial Information



Quarter Ended


Year-to-date


Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Common Share Data:









Diluted earnings (loss) per share

$      0.52

$      0.66

$      0.68

$      0.60

$     (0.22)


$      2.46

$      1.54

Adjusted earnings per share (1)

0.78

0.78

0.73

0.65

0.63


2.94

2.89

Cash dividends per share

0.22

0.22

0.22

0.22

0.20


0.88

0.78

Book value per share

22.72

21.92

23.41

24.40

26.98


22.72

26.98

Tangible book value per share (1)

13.99

13.25

14.73

15.67

18.45


13.99

18.45

Market value per share (last)

24.66

25.41

23.48

29.26

29.79


24.66

29.79

Market value per share (high)

29.41

28.54

29.75

34.24

32.12


34.24

35.59

Market value per share (low)

22.43

22.04

22.82

27.95

27.25


22.04

24.87

Market value per share (avg)

26.84

25.68

25.74

31.20

30.20


27.35

29.80

Dividend payout ratio

42.31 %

33.33 %

32.44 %

36.60 %

NM


35.77 %

50.65 %

Adjusted dividend payout ratio (1)

28.21 %

28.21 %

30.14 %

33.85 %

31.75 %


29.93 %

26.99 %

Total shares outstanding

182,437,265

182,438,780

182,461,786

183,488,844

188,337,658


182,437,265

188,337,658

Average shares outstanding - diluted

183,762,008

183,313,831

183,711,402

187,264,335

164,720,656


184,498,472

120,668,695










Yield/Rate:









(Taxable equivalent basis)









Loans, loans held for sale, and leases

5.54 %

4.82 %

4.29 %

4.23 %

4.34 %


4.74 %

4.43 %

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

5.41

4.70

4.12

3.96

4.06


4.57

4.28

Available-for-sale securities:









Taxable

1.54

1.44

1.37

1.26

1.17


1.40

1.21

Tax-exempt

3.28

3.05

2.95

2.57

2.54


2.95

2.78

Other investments

3.69

2.32

1.03

0.24

0.25


1.77

0.21

Total interest earning assets and revenue

4.38

3.74

3.29

3.10

3.11


3.63

3.24

Deposits

0.76

0.35

0.17

0.15

0.17


0.35

0.24

Interest bearing demand and money market

1.34

0.60

0.26

0.20

0.21


0.59

0.30

Savings

0.31

0.17

0.06

0.06

0.14


0.15

0.09

Time

1.17

0.56

0.47

0.52

0.58


0.68

0.88

Total interest bearing deposits

1.17

0.53

0.26

0.23

0.26


0.54

0.36

Short-term borrowings

3.62

1.89

0.74

0.11

0.11


2.24

0.12

Total interest bearing deposits and short-term borrowings

1.50

0.64

0.29

0.22

0.25


0.68

0.35

Long-term debt

4.15

4.16

4.14

4.19

3.95


4.16

4.29

Total interest bearing liabilities

1.54

0.70

0.36

0.29

0.32


0.74

0.43

Interest bearing liabilities to interest earning assets

68.42 %

66.19 %

65.25 %

64.46 %

64.18 %


66.09 %

65.61 %

Net interest income tax equivalent adjustment

$     1,071

$     1,052

$     1,063

$     1,027

$       824


$     4,212

$     2,388



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 26.

 

Table 4

Consolidated Balance Sheets

(Unaudited)



As of

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

ASSETS






Cash and due from banks

$         756,906

$         693,999

$         770,293

$         781,310

$         656,132

Interest bearing deposits with other banks and Federal funds sold

1,241,246

895,630

1,069,410

880,742

638,547

Available-for-sale securities, at fair value

11,944,096

12,441,894

13,450,621

14,371,606

15,606,470

Loans and leases, net of unearned income

30,349,277

29,296,450

28,360,485

27,189,666

26,882,988

Allowance for credit losses

440,347

433,363

440,112

438,738

446,415

Net loans and leases

29,908,930

28,863,087

27,920,373

26,750,928

26,436,573

Loans held for sale, at fair value

187,925

198,381

213,458

302,211

340,175

Premises and equipment, net

817,430

802,382

782,728

781,209

786,426

Goodwill

1,458,795

1,449,511

1,444,209

1,409,038

1,407,948

Other intangible assets, net

132,764

132,953

138,370

191,642

198,271

Bank-owned life insurance

630,046

624,696

601,601

599,346

597,953

Other assets

1,575,276

1,597,127

1,356,645

1,136,029

1,001,256

Total Assets

$    48,653,414

$    47,699,660

$    47,747,708

$    47,204,061

$    47,669,751

LIABILITIES






Deposits:






Demand: Noninterest bearing

$    12,731,065

$    13,839,649

$    14,012,529

$    14,458,563

$    13,634,505

Interest bearing

19,040,131

18,033,648

19,032,983

18,854,543

18,727,588

 Savings

3,473,746

3,676,340

3,735,925

3,713,629

3,556,079

 Time deposits

3,711,672

3,454,309

3,407,646

3,541,320

3,899,501

Total deposits

38,956,614

39,003,946

40,189,083

40,568,055

39,817,673

Securities sold under agreement to repurchase

708,736

678,334

649,177

703,560

687,188

Federal funds purchased and short-term FHLB borrowings

3,300,231

2,495,000

1,200,000

—

595,000

Subordinated and long-term debt

462,554

463,291

465,073

465,695

482,411

Other liabilities

913,905

892,164

806,450

822,994

839,492

Total Liabilities

44,342,040

43,532,735

43,309,783

42,560,304

42,421,764

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,093

456,097

456,154

458,722

470,844

Capital surplus

2,709,391

2,695,646

2,686,031

2,701,371

2,841,998

Accumulated other comprehensive loss

(1,222,538)

(1,297,812)

(936,345)

(664,000)

(139,369)

Retained earnings

2,201,435

2,146,001

2,065,092

1,980,671

1,907,521

Total Shareholders' Equity

4,311,374

4,166,925

4,437,925

4,643,757

5,247,987

Total Liabilities & Shareholders' Equity

$    48,653,414

$    47,699,660

$    47,747,708

$    47,204,061

$    47,669,751

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 


(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

ASSETS






Cash and due from banks

$         617,634

$         654,589

$         640,672

$         656,630

$         792,315

Interest bearing deposits with other banks and Federal funds sold

943,806

851,185

751,972

1,161,262

1,253,722

Available-for-sale securities, at fair value

12,156,803

13,252,828

13,941,127

15,070,524

12,954,547

Loans and leases, net of unearned income

29,812,924

28,872,156

27,848,097

27,106,733

22,745,093

Allowance for credit losses

434,785

441,042

438,752

444,294

404,578

Net loans and leases

29,378,139

28,431,114

27,409,345

26,662,439

22,340,515

Loans held for sale, at fair value

62,517

103,312

147,301

176,647

220,766

Premises and equipment, net

802,771

809,799

784,247

785,005

690,031

Goodwill

1,457,120

1,444,331

1,407,452

1,407,973

1,115,502

Other intangible assets, net

132,091

136,149

188,897

195,606

106,559

Bank-owned life insurance

625,938

613,973

599,912

598,822

517,511

Other assets

1,613,675

1,298,277

1,193,904

964,942

1,004,045

Total Assets

$    47,790,494

$    47,595,557

$    47,064,829

$    47,679,850

$    40,995,513

LIABILITIES






Deposits:






Demand: Noninterest bearing

$    13,344,152

$    13,816,796

$    13,970,163

$    13,806,591

$    12,047,637

Interest bearing

17,866,198

18,675,214

18,238,571

19,401,019

15,811,268

 Savings

3,555,911

3,720,218

3,723,193

3,631,699

3,374,243

 Time deposits

3,606,093

3,388,658

3,464,101

3,725,794

3,526,539

Total deposits

38,372,354

39,600,886

39,396,028

40,565,103

34,759,687

Securities sold under agreement to repurchase

660,974

655,223

666,067

694,033

720,120

Federal funds purchased and short-term FHLB borrowings

3,251,947

1,608,587

1,294,946

131,556

7,554

Subordinated and long-term debt

462,927

464,843

465,447

466,842

441,165

Other liabilities

826,707

759,363

719,152

760,085

558,393

Total Liabilities

43,574,909

43,088,902

42,541,640

42,617,619

36,486,919

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,095

456,130

457,713

465,458

404,522

Capital surplus

2,701,121

2,689,340

2,694,546

2,779,746

2,139,357

Accumulated other comprehensive loss

(1,302,388)

(922,673)

(821,034)

(283,417)

(103,554)

Retained earnings

2,193,764

2,116,865

2,024,971

1,933,451

1,901,276

Total Shareholders' Equity

4,215,585

4,506,655

4,523,189

5,062,231

4,508,594

Total Liabilities & Shareholders' Equity

$    47,790,494

$    47,595,557

$    47,064,829

$    47,679,850

$    40,995,513

 

Table 6

Consolidated Statements of Income (Loss)

(Unaudited)



Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

INTEREST REVENUE:









Loans and leases

$   414,623

$   349,093

$   296,680

$   282,266

$   249,614


$ 1,342,662

$   758,180

Available-for-sale securities:









Taxable

45,807

46,701

46,254

45,155

37,258


183,918

111,050

Tax-exempt

2,547

2,548

2,571

2,414

1,608


10,079

3,461

Loans held for sale

1,788

2,241

2,118

1,407

1,324


7,554

8,035

Other interest revenue

8,783

4,976

1,932

688

822


16,380

1,323

Total interest revenue

473,548

405,559

349,555

331,930

290,626


1,560,593

882,049

INTEREST EXPENSE:









Interest bearing demand deposits and money market accounts

60,253

28,175

11,717

9,742

8,922


109,893

33,688

Savings

2,769

1,597

590

568

766


5,519

2,764

Time deposits

10,651

4,797

4,041

4,764

5,139


24,253

24,394

Federal funds purchased and securities sold under agreement to repurchase

8,365

3,944

906

216

200


13,432

813

Short-term debt

27,302

6,821

2,734

5

—


36,863

25

Subordinated and long-term debt

4,848

4,871

4,801

4,813

4,387


19,330

14,638

Total interest expense

114,188

50,205

24,789

20,108

19,414


209,290

76,322

Net interest revenue

359,360

355,354

324,766

311,822

271,212


1,351,303

805,727

Provision (release) for credit losses

6,000

—

1,000

—

133,562


7,000

138,062

Net interest revenue, after provision for credit losses

353,360

355,354

323,766

311,822

137,650


1,344,303

667,665










NONINTEREST REVENUE:









Mortgage banking

2,571

9,080

11,446

21,763

10,580


44,860

58,053

Credit card, debit card and merchant fees

15,750

14,497

16,593

11,321

12,016


58,160

42,636

Deposit service charges

16,863

19,134

18,291

19,189

16,958


73,478

46,418

Security (losses) gains, net

(595)

(139)

1,446

(1,097)

(378)


(384)

(395)

Insurance commissions

34,679

39,876

39,994

35,727

32,637


150,275

135,183

Wealth management

19,199

19,335

20,213

21,737

16,352


80,486

39,507

Gain on sale of PPP loans

—

—

—

—

—


—

21,572

Other noninterest income

26,406

22,708

17,251

19,795

15,689


86,157

35,179

Total noninterest revenue

114,873

124,491

125,234

128,435

103,854


493,032

378,153










NONINTEREST EXPENSE:









Salaries and employee benefits

183,918

191,193

182,094

187,819

149,599


745,023

471,815

Occupancy and equipment

30,539

30,610

30,129

28,270

26,885


119,548

81,394

Data processing and software

29,289

28,079

29,081

27,483

24,838


113,932

73,085

Merger expense

20,276

19,690

7,274

3,974

44,843


51,214

59,896

Amortization of intangibles

5,251

5,417

3,042

6,780

5,473


20,490

12,616

Deposit insurance assessments

5,931

4,499

4,945

3,336

3,278


18,712

8,701

Pension settlement expense

6,127

2,896

—

—

651


9,023

3,051

Other noninterest expense

59,340

37,350

29,323

34,005

33,627


160,018

88,332

Total noninterest expense

340,671

319,734

285,888

291,667

289,194


1,237,960

798,890

Income (loss) before income taxes

127,562

160,111

163,112

148,590

(47,690)


599,375

246,928

Income tax expense (benefit)

29,628

36,713

36,154

33,643

(13,033)


136,138

51,766

Net income (loss)

97,934

123,398

126,958

114,947

(34,657)


463,237

195,162

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


9,488

9,488

Net income (loss) available to common shareholders

$     95,562

$   121,026

$   124,586

$   112,575

$    (37,029)


$   453,749

$   185,674

Net income (loss) per common share: Diluted

$         0.52

$         0.66

$         0.68

$         0.60

$       (0.22)


$         2.46

$         1.54

 

Table 7

Selected Loan Portfolio Data

(Unaudited)



Quarter Ended

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$      8,985,547

$      8,803,381

$      8,526,481

$      8,017,958

$      7,847,473

Owner occupied

4,068,659

3,943,442

3,851,336

3,703,914

3,567,746

Total commercial and industrial

13,054,206

12,746,823

12,377,817

11,721,872

11,415,219

Commercial real estate






Construction, acquisition and development

3,547,986

3,244,425

2,982,119

3,028,514

2,924,343

Income producing

5,150,680

5,098,470

5,054,232

4,795,486

4,924,369

Total commercial real estate

8,698,666

8,342,895

8,036,351

7,824,000

7,848,712

Consumer






Residential mortgages

8,319,242

7,924,378

7,662,621

7,355,995

7,311,306

Other consumer

277,163

282,354

283,696

287,799

307,751

Total consumer

8,596,405

8,206,732

7,946,317

7,643,794

7,619,057

Total loans and leases, net of unearned

$    30,349,277

$    29,296,450

$    28,360,485

$    27,189,666

$    26,882,988







NON-PERFORMING ASSETS






Non-performing Loans and Leases






Nonaccrual Loans and Leases






Commercial and industrial






Non-real estate

$           23,907

$           23,916

$           34,233

$           33,086

$           33,690

Owner occupied

7,944

8,327

9,567

11,787

22,058

Total commercial and industrial

31,851

32,243

43,800

44,873

55,748

Commercial real estate






Construction, acquisition and development

2,974

1,823

2,125

1,618

5,568

Income producing

7,331

8,580

8,750

9,688

16,086

Total commercial real estate

10,305

10,403

10,875

11,306

21,654

Consumer






Residential mortgages

55,892

46,671

34,172

34,278

44,180

Other consumer

697

614

521

574

522

Total consumer

56,589

47,285

34,693

34,852

44,702

Total nonaccrual loans and leases

$           98,745

$           89,931

$           89,368

$           91,031

$         122,104







Loans and Leases 90+ Days Past Due, Still Accruing

2,068

11,984

19,682

20,957

24,784

Restructured Loans and Leases, Still Accruing

8,598

16,200

7,385

7,292

6,903

Total non-performing loans and leases

$         109,411

$         118,115

$         116,435

$         119,280

$         153,791







Other Real Estate Owned and Other Repossessed Assets

6,725

8,376

14,399

28,401

33,021

Total Non-performing Assets

$         116,136

$         126,491

$         130,834

$         147,681

$         186,812







Additions to nonaccrual loans and leases during the quarter (excluding acquisitions)

$           38,945

$           34,432

$           21,312

$           16,374

$           22,158

 

Table 8

Allowance for Credit Losses

(Unaudited)



Quarter Ended

(Dollars in thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      433,363

$      440,112

$      438,738

$      446,415

$      260,276

Charge-offs:






Commercial and industrial

(2,295)

(11,551)

(2,170)

(2,682)

(2,712)

Commercial real estate

(426)

(1,116)

(275)

(313)

(586)

Consumer

(2,650)

(2,653)

(1,941)

(1,792)

(2,342)

Total loans charged-off

(5,371)

(15,320)

(4,386)

(4,787)

(5,640)

Recoveries:






Commercial and industrial

6,405

3,657

3,217

3,178

7,835

Commercial real estate

2,851

3,509

1,076

437

1,047

Consumer

1,099

1,405

1,467

1,612

1,521

Total recoveries

10,355

8,571

5,760

5,227

10,403

Net recoveries (charge-offs)

4,984

(6,749)

1,374

440

4,763

Initial allowance on loans purchased with credit deterioration

—

—

—

(8,117)

62,321

Provision:






Loans and leases acquired during the quarter

—

—

—

—

119,055

Provision for credit losses related to loans and leases

2,000

—

—

—

—

Total provision for loans and leases

2,000

—

—

—

119,055

Balance, end of period

$      440,347

$      433,363

$      440,112

$      438,738

$      446,415







Average loans and leases, net of unearned, for period

$ 29,812,924

$ 28,872,156

$ 27,848,097

$ 27,106,733

$ 22,745,093

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

(0.07) %

0.09 %

(0.02) %

(0.01) %

(0.08) %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$        24,551

$        24,551

$        23,551

$        23,551

$          9,044

Provision for unfunded commitments for loans acquired during the quarter

—

—

—

—

13,007

Provision for credit losses for unfunded commitments

4,000

—

1,000

—

1,500

Balance, end of period

$        28,551

$        24,551

$        24,551

$        23,551

$        23,551



(1)

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

(2)

Annualized.

 

Table 9

Loan Portfolio by Grades

(Unaudited)



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

$ 29,726,472

$        89,680

$      492,692

$          7,199

$        33,234

$ 30,349,277



September 30, 2022

(In thousands)

Pass

Special
Mention

Substandard

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:







Commercial and industrial







Non-real estate

$    8,564,230

$         60,616

$       168,174

$           5,947

$           4,414

$    8,803,381

Owner occupied

3,899,192

1,758

37,019

3,576

1,897

3,943,442

Total commercial and industrial

12,463,422

62,374

205,193

9,523

6,311

12,746,823

Commercial real estate







Construction, acquisition and development

3,216,949

17,597

3,725

—

6,154

3,244,425

Income producing

4,973,000

14,363

89,573

705

20,829

5,098,470

Total commercial real estate

8,189,949

31,960

93,298

705

26,983

8,342,895

Consumer







Residential mortgages

7,789,212

1,156

132,510

—

1,500

7,924,378

Other consumer

278,815

—

3,539

—

—

282,354

Total consumer

8,068,027

1,156

136,049

—

1,500

8,206,732

Total loans and leases, net of unearned

$  28,721,398

$         95,490

$       434,540

$         10,228

$         34,794

$  29,296,450

 

Table 10

Geographical Loan Information

(Unaudited)



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













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

$  110,090

$    26,719

$    72,185

$    61,537

$  (22,564)

$  113,387

$      6,371

$    74,638

$  484,022

$  126,442

$    1,052,827

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

17.71 %

9.52 %

15.91 %

11.36 %

(6.61) %

16.44 %

4.73 %

19.13 %

16.07 %

13.77 %

14.26 %














September 30, 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

$      349,832

$      162,760

$      393,595

$      519,730

$      345,539

$      475,031

$        65,512

$      321,528

$   3,812,763

$   2,357,091

$   8,803,381

Owner occupied

349,354

244,482

323,891

279,264

290,926

554,072

91,611

172,550

1,456,766

180,526

3,943,442

Total commercial and industrial

699,186

407,242

717,486

798,994

636,465

1,029,103

157,123

494,078

5,269,529

2,537,617

12,746,823

Commercial real estate












Construction, acquisition and development

191,703

81,362

210,076

328,010

58,871

204,065

33,441

148,321

1,620,083

368,493

3,244,425

Income producing

428,514

250,807

329,519

654,233

212,723

439,077

193,106

289,768

1,875,365

425,358

5,098,470

Total commercial real estate

620,217

332,169

539,595

982,243

271,594

643,142

226,547

438,089

3,495,448

793,851

8,342,895

Consumer












Residential mortgages

1,120,555

363,247

537,874

354,043

435,941

1,009,632

149,603

605,962

3,126,062

221,459

7,924,378

Other consumer

26,611

10,556

4,940

14,400

9,644

55,147

1,091

9,858

59,159

90,948

282,354

Total consumer

1,147,166

373,803

542,814

368,443

445,585

1,064,779

150,694

615,820

3,185,221

312,407

8,206,732

Total loans and leases, net of unearned

$   2,466,569

$   1,113,214

$   1,799,895

$   2,149,680

$   1,353,644

$   2,737,024

$      534,364

$   1,547,987

$ 11,950,198

$   3,643,875

$  29,296,450

 

Table 11

Noninterest Revenue and Expense

(Unaudited)



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

NONINTEREST REVENUE:









Mortgage banking excl. MSR and MSR
hedge market value adjustment

$        5,408

$        4,746

$        6,754

$        7,733

$        7,963


$      24,642

$      47,914

MSR and MSR hedge market value adjustment

(2,837)

4,334

4,692

14,030

2,617


20,218

10,139

Credit card, debit card and merchant fees

15,750

14,497

16,593

11,321

12,016


58,160

42,636

Deposit service charges

16,863

19,134

18,291

19,189

16,958


73,478

46,418

Security (losses) gains, net

(595)

(139)

1,446

(1,097)

(378)


(384)

(395)

Insurance commissions

34,679

39,876

39,994

35,727

32,637


150,275

135,183

Trust income

9,113

9,011

9,129

10,061

7,892


37,314

22,190

Annuity fees

951

600

753

604

435


2,908

586

Brokerage commissions and fees

9,135

9,724

10,331

11,072

8,025


40,264

16,731

Gain on sale of PPP loans

—

—

—

—

—


—

21,572

Bank-owned life insurance

5,436

3,537

3,285

3,336

3,098


15,594

11,180

Other miscellaneous income

20,970

19,171

13,966

16,459

12,591


70,563

23,999

Total noninterest revenue

$    114,873

$    124,491

$    125,234

$    128,435

$    103,854


$    493,032

$    378,153










NONINTEREST EXPENSE:









Salaries and employee benefits

$    183,918

$    191,193

$    182,094

$    187,819

$    149,599


$    745,023

$    471,815

Occupancy and equipment

30,539

30,610

30,129

28,270

26,885


119,548

81,394

Deposit insurance assessments

5,931

4,499

4,945

3,336

3,278


18,712

8,701

Pension settlement expense

6,127

2,896

—

—

651


9,023

3,051

Advertising and public relations

28,659

4,085

4,417

4,593

5,086


41,754

10,780

Foreclosed property expense

400

1,093

(1,104)

440

689


832

4,548

Telecommunications

1,714

1,882

1,984

1,833

1,725


7,413

6,240

Travel and entertainment

5,310

4,149

3,412

2,811

2,805


15,682

6,319

Data processing and software

29,289

28,079

29,081

27,483

24,838


113,932

73,085

Professional, consulting and outsourcing

3,598

2,724

3,769

3,737

3,127


13,828

7,465

Amortization of intangibles

5,251

5,417

3,042

6,780

5,473


20,490

12,616

Legal

758

2,054

1,463

1,793

1,282


6,068

4,036

Merger expense

20,276

19,690

7,274

3,974

44,843


51,214

59,896

Postage and shipping

1,925

2,098

2,022

2,034

1,772


8,079

6,050

Other miscellaneous expense

16,976

19,265

13,360

16,764

17,141


66,362

42,894

Total noninterest expense

$    340,671

$    319,734

$    285,888

$    291,667

$    289,194


$ 1,237,960

$    798,890










INSURANCE COMMISSIONS:









Property and casualty commissions

$      24,682

$      30,021

$      29,220

$      25,852

$      23,640


$    109,774

$      98,042

Life and health commissions

7,151

7,254

7,935

7,143

6,459


29,483

26,626

Risk management income

887

654

674

757

699


2,972

2,599

Other

1,959

1,947

2,165

1,975

1,839


8,046

7,916

Total insurance commissions

$      34,679

$      39,876

$      39,994

$      35,727

$      32,637


$    150,275

$    135,183

 

Table 12

Average Balance and Yields

(Unaudited)



Quarter Ended


December 31, 2022


September 30, 2022


December 31, 2021

(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

$ 29,812,924

$   405,827

5.40 %


$  28,872,156

$   341,334

4.69 %


$ 22,745,093

$   233,585

4.07 %

Accretion income on acquired loans


9,190

0.12



8,134

0.11



16,426

0.29

Loans held for sale

62,517

1,788

11.35


103,312

2,241

8.61


220,766

1,324

2.38

Investment securities












Taxable

11,767,062

45,807

1.54


12,833,857

46,701

1.44


12,636,302

37,258

1.17

Tax-exempt

389,741

3,224

3.28


418,971

3,225

3.05


318,245

2,035

2.54

Total investment securities

12,156,803

49,031

1.60


13,252,828

49,926

1.49


12,954,547

39,293

1.20

Other investments

943,806

8,783

3.69


851,185

4,976

2.32


1,289,997

822

0.25

Total interest-earning assets

42,976,050

474,619

4.38 %


43,079,481

406,611

3.74 %


37,210,403

291,450

3.11 %

Other assets

5,249,229




4,957,118




4,189,688



Allowance for credit losses

434,785




441,042




404,578



Total assets

$ 47,790,494




$  47,595,557




$ 40,995,513















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 17,866,198

$     60,253

1.34 %


$  18,675,214

$     28,175

0.60 %


$ 15,811,268

8,922

0.22 %

Savings deposits

3,555,911

2,769

0.31


3,720,218

1,597

0.17


3,374,243

766

0.09

Time deposits

3,606,093

10,651

1.17


3,388,658

4,797

0.56


3,526,539

5,139

0.58

Total interest-bearing deposits

25,028,202

73,673

1.17


25,784,090

34,569

0.53


22,712,050

14,827

0.26

Short-term borrowings

3,912,921

35,667

3.62


2,263,810

10,765

1.89


727,674

200

0.11

Long-term borrowings

462,927

4,848

4.15


464,843

4,871

4.16


441,165

4,387

3.95

Total interest-bearing liabilities

29,404,050

114,188

1.54 %


28,512,743

50,205

0.70 %


23,880,889

19,414

0.32 %

Noninterest-bearing liabilities:












Demand deposits

13,344,152




13,816,796




12,047,637



Other liabilities

826,707




759,363




558,393



Total liabilities

43,574,909




43,088,902




36,486,919



Shareholders' equity

4,215,585




4,506,655




4,508,594



Total liabilities and shareholders' equity

$ 47,790,494




$  47,595,557




$ 40,995,513



Net interest income/net interest spread


360,431

2.84 %



356,406

3.05 %



272,036

2.78 %

Net yield on earning assets/net interest margin



3.33 %




3.28 %




2.90 %

Taxable equivalent adjustment:












Loans and investment securities


(1,071)




(1,052)




(824)


Net interest revenue


$   359,360




$   355,354




$   271,212


 

Table 12

Average Balance and Yields Cont.



Year-To-Date


December 31, 2022


December 31, 2021

(Dollars in thousands)

Average

Balance

Income/
Expense

Yield/

Rate


Average

Balance

Income/
Expense

Yield/

Rate

ASSETS








Interest-earning assets:








Loans and leases, excluding accretion

$   28,418,658

$   1,297,384

4.57 %


$   17,055,429

$      733,448

4.30 %

Accretion income on acquired loans


46,811

0.16



26,200

0.15

Loans held for sale

122,079

7,554

6.19 %


278,447

8,035

2.89 %

Investment securities








Taxable

13,163,403

183,918

1.40 %


9,152,620

111,050

1.21 %

Tax-exempt

432,969

12,758

2.95


157,327

4,381

2.78

Total investment securities

13,596,372

196,676

1.45


9,309,947

115,431

1.24

Other investments

926,253

16,380

1.77


638,559

1,323

0.21

Total interest-earning assets

43,063,362

1,564,805

3.63 %


27,282,382

884,437

3.24

Other assets

4,909,491




3,001,809



Allowance for credit losses

439,696




289,543



Total assets

$   47,533,157




$   29,994,648











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:








Interest bearing demand and money market

$   18,541,402

109,893

0.59 %


$   11,114,242

$        33,688

0.30 %

Savings deposits

3,657,718

5,519

0.15


2,946,629

2,764

0.09

Time deposits

3,545,402

24,253

0.68


2,784,733

24,394

0.88

Total interest-bearing deposits

25,744,522

139,665

0.54


16,845,604

60,846

0.36

Short-term borrowings

2,249,354

50,295

2.24


713,788

838

0.12

Long-term borrowings

465,004

19,330

4.16


341,170

14,638

4.29

Total interest-bearing liabilities

28,458,880

209,290

0.74 %


17,900,562

76,322

0.43 %

Noninterest-bearing liabilities:








Demand deposits

13,733,384




8,382,997



Other liabilities

766,490




373,514



Total liabilities

42,958,754




26,657,073



Shareholders' equity

4,574,403




3,337,575



Total liabilities and shareholders' equity

$   47,533,157




$   29,994,648



Net interest income/net interest spread


1,355,515

2.90 %



808,115

2.82 %

Net yield on earning assets/net interest margin



3.15 %




2.96 %

Taxable equivalent adjustment:








Loans and investment securities


(4,212)




(2,388)


Net interest revenue


$   1,351,303




$      805,727


 

Table 13

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      112,767

$      102,021

$        92,859

$        69,552

$        64,684

Originations of servicing assets

2,282

3,890

4,962

5,155

5,709

Changes in fair value:






Due to payoffs/paydowns

(2,308)

(3,085)

(3,253)

(3,147)

(3,823)

Due to update in valuation assumptions

(2,998)

9,941

7,453

21,299

2,982

Fair value, end of period

$      109,743

$      112,767

$      102,021

$        92,859

$        69,552







MORTGAGE BANKING REVENUE:






Origination

$          1,793

$          1,916

$          4,042

$          5,118

$          5,970

Servicing

5,923

5,915

5,965

5,762

5,816

Payoffs/Paydowns

(2,308)

(3,085)

(3,253)

(3,147)

(3,823)

Total mortgage banking revenue excluding MSR

5,408

4,746

6,754

7,733

7,963

Market value adjustment on MSR

(2,998)

9,941

7,453

21,299

2,982

Market value adjustment on MSR Hedge

161

(5,607)

(2,761)

(7,269)

(365)

Total mortgage banking revenue

$          2,571

$          9,080

$        11,446

$        21,763

$        10,580







Mortgage loans serviced

$   7,692,744

$   7,723,605

$   7,685,994

$   7,629,119

$   7,553,917

MSR/mortgage loans serviced

1.43 %

1.46 %

1.33 %

1.22 %

0.92 %



Quarter Ended

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021

AVAILABLE-FOR-SALE SECURITIES, at fair value






U.S. Treasury securities

$      1,458,513

$      1,451,461

$      1,466,313

$      1,459,845

$      1,496,465

Obligations of U.S. government agencies

1,477,127

1,820,913

2,133,561

2,350,810

2,638,442

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






Residential pass-through:






Guaranteed by GNMA

84,368

87,063

95,955

105,900

113,427

Issued by FNMA and FHLMC

6,274,970

6,427,152

7,014,715

7,604,829

8,129,191

Other residential mortgage-back securities

168,452

181,317

201,440

212,216

243,357

Commercial mortgage-backed securities

1,881,853

1,880,949

1,899,785

1,951,367

2,061,133

Total MBS

8,409,643

8,576,481

9,211,895

9,874,312

10,547,108

Obligations of states and political subdivisions

466,002

444,953

485,400

530,241

565,520

Other domestic debt securities

82,718

98,615

101,313

103,117

63,645

Foreign debt securities

50,093

49,471

52,139

53,281

295,290

Total available-for-sale securities

$    11,944,096

$    12,441,894

$    13,450,621

$    14,371,606

$    15,606,470

 

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


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Adjusted net income available to common shareholders









Net income (loss)

$           97,934

$        123,398

$        126,958

$         114,947

$          (34,657)


$         463,237

$         195,162

Plus: Merger expense

20,276

19,690

7,274

3,974

44,843


51,214

59,896

Incremental merger related expense

32,704

6,912

6,060

6,571

4,633


52,247

4,633

Initial provision for acquired loans

—

—

—

—

132,062


—

143,562

Branch closing expense

2,254

6

705

128

—


3,094

—

Pension settlement expense

6,127

2,896

—

—

651


9,023

3,051

Less: Security (losses) gains, net

(595)

(139)

1,446

(1,097)

(378)


(384)

(395)

Tax adjustment

14,665

7,016

2,981

2,786

41,453


27,448

48,681

Adjusted net income

145,225

146,025

136,570

123,931

106,457


551,751

358,018

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


9,488

9,488

Adjusted net income available to common shareholders

$         142,853

$        143,653

$        134,198

$         121,559

$         104,085


$         542,263

$         348,530



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Pre-tax pre-provision net revenue









Net income (loss)

$           97,934

$        123,398

$        126,958

$         114,947

$          (34,657)


$         463,237

$         195,162

Plus: Provision for credit losses

6,000

—

1,000

—

133,562


7,000

138,062

Income tax expense (benefit)

29,628

36,713

36,154

33,643

(13,033)


136,138

51,766

Pre-tax pre-provision net revenue

$         133,562

$          160,111

$        164,112

$         148,590

$           85,872


$         606,375

$         384,990



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Adjusted pre-tax pre-provision net revenue









Net income (loss)

$           97,934

$        123,398

$        126,958

$         114,947

$          (34,657)


$         463,237

$         195,162

Plus: Provision for credit losses

6,000

—

1,000

—

133,562


7,000

138,062

Merger expense

20,276

19,690

7,274

3,974

44,843


51,214

59,896

Incremental merger related expense

32,704

6,912

6,060

6,571

4,633


52,247

4,633

Branch closing expense

2,254

6

705

128

—


3,094

—

Pension settlement expense

6,127

2,896

—

—

651


9,023

3,051

Income tax expense (benefit)

29,628

36,713

36,154

33,643

(13,033)


136,138

51,766

Less: Security (losses) gains, net

(595)

(139)

1,446

(1,097)

(378)


(384)

(395)

Adjusted pre-tax pre-provision net revenue

$         195,518

$        189,754

$        176,705

$         160,360

$         136,377


$         722,337

$         452,965



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Total adjusted noninterest expense









Total noninterest expense

$         340,671

$        319,734

$        285,888

$         291,667

$         289,194


$      1,237,960

$         798,890

Less: Merger expense

20,276

19,690

7,274

3,974

44,843


51,214

59,896

Incremental merger related expense

32,704

6,912

6,060

6,571

4,633


52,247

4,633

Branch closing expense

2,254

6

705

128

—


3,094

—

Pension settlement expense

6,127

2,896

—

—

651


9,023

3,051

Total adjusted noninterest expense

$        279,310

$        290,230

$        271,849

$         280,994

$         239,067


$      1,122,382

$         731,310



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

Total tangible assets, excluding AOCI









Total assets

$    48,653,414

$   47,699,660

$   47,747,708

$    47,204,061

$    47,669,751


$    48,653,414

$    47,669,751

Less: Goodwill

1,458,795

1,449,511

1,444,209

1,409,038

1,407,948


1,458,795

1,407,948

Other identifiable intangible assets

132,764

132,953

138,370

191,642

198,271


132,764

198,271

Total tangible assets

47,061,855

46,117,196

46,165,129

45,603,381

46,063,532


47,061,855

46,063,532

Less: AOCI

(1,222,538)

(1,297,812)

(936,345)

(664,000)

(139,369)


(1,222,538)

(139,369)

Total tangible assets, excluding AOCI

$    48,284,393

$   47,415,008

$   47,101,474

$    46,267,381

$    46,202,901


$    48,284,393

$    46,202,901



Quarter Ended


Year-to-date

(In thousands)

Dec 2022

Sep 2022

Jun 2022

Mar 2022

Dec 2021


Dec 2022

Dec 2021

PERIOD END BALANCES:









Total shareholders' equity, excluding AOCI









Total shareholders' equity

$      4,311,374

$     4,166,925

$     4,437,925

$      4,643,757

$      5,247,987


$      4,311,374

$      5,247,987

Less: AOCI

(1,222,538)

(1,297,812)

(936,345)

(664,000)

(139,369)


(1,222,538)

(139,369)

Total shareholders' equity, excluding AOCI

$      5,533,912

$     5,464,737

$     5,374,270

$      5,307,757

$      5,387,356


$      5,533,912

$      5,387,356










Common shareholders' equity, excluding AOCI









Total shareholders' equity

$      4,311,374

$     4,166,925

$     4,437,925

$      4,643,757

$      5,247,987


$      4,311,374

$      5,247,987

Less: preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Common shareholders' equity

4,144,381

3,999,932

4,270,932

4,476,764

5,080,994


4,144,381

5,080,994

Less: AOCI

(1,222,538)

(1,297,812)

(936,345)

(664,000)

(139,369)


(1,222,538)

(139,369)

Common shareholders' equity, excluding AOCI

$      5,366,919

$     5,297,744

$     5,207,277

$      5,140,764

$      5,220,363


$      5,366,919

$      5,220,363










Total tangible common shareholders' equity, excluding AOCI









Total shareholders' equity

$      4,311,374

$     4,166,925

$     4,437,925

$      4,643,757

$      5,247,987


$      4,311,374

$      5,247,987

Less: Goodwill

1,458,795

1,449,511

1,444,209

1,409,038

1,407,948


1,458,795

1,407,948

Other identifiable intangible assets

132,764

132,953

138,370

191,642

198,271


132,764

198,271

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

2,552,822

2,417,468

2,688,353

2,876,084

3,474,775


2,552,822

3,474,775

Less: AOCI

(1,222,538)

(1,297,812)

(936,345)

(664,000)

(139,369)


(1,222,538)

(139,369)

Total tangible common shareholders' equity, excluding AOCI

$      3,775,360

$     3,715,280

$     3,624,698

$      3,540,084

$      3,614,144


$      3,775,360

$      3,614,144










AVERAGE BALANCES:









Total tangible common shareholders' equity









Total shareholders' equity

$      4,215,585

$     4,506,655

$     4,523,189

$      5,062,231

$      4,508,594


$      4,574,403

$      3,337,575

Less: Goodwill

1,457,120

1,444,331

1,407,452

1,407,973

1,115,502


1,429,395

959,586

Other identifiable intangible assets

132,091

136,149

188,897

195,606

106,559


162,938

66,996

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

$      2,459,381

$     2,759,182

$     2,759,847

$      3,291,659

$      3,119,540


$      2,815,077

$      2,144,000










Total average assets

$    47,790,494

$   47,595,557

$   47,064,829

$    47,679,850

$    40,995,513


$    47,533,157

$    29,994,648

Total shares of common stock outstanding

182,437,265

182,438,780

182,461,786

183,488,844

188,337,658


182,437,265

188,337,658

Average shares outstanding-diluted

183,762,008

183,313,831

183,711,402

187,264,335

164,720,656


184,498,472

120,668,695










Tangible common shareholders' equity to tangible assets (1)

5.42 %

5.24 %

5.82 %

6.31 %

7.54 %


5.42 %

7.54 %

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

7.82

7.84

7.70

7.65

7.82


7.82

7.82

Return on average tangible common equity (3)

15.42

17.40

18.11

13.87

(4.71)


16.12

8.66

Adjusted return on average tangible common equity (4)

23.04

20.66

19.50

14.98

13.24


19.26

16.26

Adjusted return on average assets (5)

1.21

1.22

1.16

1.05

1.03


1.16

1.19

Adjusted return on average common shareholders' equity (6)

14.00

13.13

12.36

10.07

9.51


12.30

10.99

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

1.11

1.33

1.40

1.26

0.83


1.28

1.28

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

1.62

1.58

1.51

1.36

1.32


1.52

1.51

Tangible book value per common share (9)

$             13.99

$            13.25

$            14.73

$             15.67

$             18.45


$             13.99

$             18.45

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

20.69

20.36

19.87

19.29

19.19


20.69

19.19

Adjusted earnings per common share (11)

$               0.78

$              0.78

$              0.73

$               0.65

$               0.63


$               2.94

$               2.89

Adjusted dividend payout ratio (12)

28.21 %

28.21 %

30.14 %

33.85 %

31.75 %


29.93 %

26.99 %

 

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-fourth-quarter-2022-and-annual-financial-results-301733868.html

SOURCE Cadence Bank

FAQ

What were Cadence Bank's financial results for Q4 2022?

Cadence Bank reported net income of $95.6 million, or $0.52 per diluted share, for Q4 2022.

How did Cadence Bank's net interest margin change in 2022?

The net interest margin improved to 3.15% in 2022, compared to 2.96% in 2021.

What was Cadence Bank's adjusted net income for 2022?

The adjusted net income available to common shareholders for 2022 was $542.3 million, or $2.94 per diluted share.

How much loan growth did Cadence Bank achieve in 2022?

Cadence Bank generated net organic loan growth of $3.5 billion, or 12.9%, in 2022.

What happened to Cadence Bank's total deposits in 2022?

Total deposits declined by $861.1 million over the year, reflecting inflation impacts.

Stock CADE logo
Cadence Bank

NYSE:CADE

CADE Rankings

#1148 Ranked by Market Cap
#1090 Ranked by Dividends

CADE Latest News

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
Jul 22, 2024
Cadence Bank Announces Second Quarter 2024 Financial Results

CADE Stock Data

6.11B
184.38M
0.02%
85.19%
3.06%
Banks - Regional
Financial Services
Link
United States of America
Tupelo