Cadence Bank Announces Second Quarter 2024 Financial Results
Cadence Bank (NYSE: CADE) announced strong Q2 2024 financial results, with net income available to common shareholders of $135.1 million, or $0.73 per diluted share. Adjusted net income from continuing operations was $127.9 million, or $0.69 per diluted share, up 11.3% from Q1 2024. The bank achieved record adjusted pre-tax pre-provision net revenue of $190.9 million, up 19.7% year-over-year. Key highlights include:
- Net organic loan growth of $430.2 million (5.3% annualized)
- Core customer deposit growth of $237.4 million (2.9% annualized)
- Net interest margin improvement to 3.27%
- Stable credit quality with flat provision for credit losses
- Improved efficiency ratio to 56.7%
- Strong capital position with Common Equity Tier 1 Capital of 11.9%
The bank's performance reflects steady loan and deposit growth, stable funding costs, and improved operating efficiency.
Cadence Bank (NYSE: CADE) ha annunciato forti risultati finanziari del Q2 2024, con un reddito netto disponibile per gli azionisti comuni di 135,1 milioni di dollari, pari a 0,73 dollari per azione diluita. Il reddito netto rettificato dalle operazioni continuative è stato di 127,9 milioni di dollari, cioè 0,69 dollari per azione diluita, in aumento dell'11,3% rispetto al Q1 2024. La banca ha raggiunto un record di ricavi netti rettificati pre-tasse e pre-acquisizioni di 190,9 milioni di dollari, in crescita del 19,7% rispetto all'anno precedente. I punti salienti includono:
- Crescita organica dei prestiti netti di 430,2 milioni di dollari (5,3% annualizzato)
- Crescita dei depositi dei clienti core di 237,4 milioni di dollari (2,9% annualizzato)
- Miglioramento del margine di interesse netto al 3,27%
- Qualità del credito stabile con una provision flat per perdite su crediti
- Miglioramento del rapporto di efficienza al 56,7%
- Forte posizione patrimoniale con Common Equity Tier 1 Capital dell'11,9%
Le performance della banca riflettono una crescita costante dei prestiti e dei depositi, costi di finanziamento stabili e un'efficienza operativa migliorata.
Cadence Bank (NYSE: CADE) anunció sólidos resultados financieros del Q2 2024, con un ingreso neto disponible para los accionistas comunes de 135.1 millones de dólares, o 0.73 dólares por acción diluida. El ingreso neto ajustado de operaciones continuas fue de 127.9 millones de dólares, o 0.69 dólares por acción diluida, un incremento del 11.3% en comparación con el Q1 2024. El banco logró un récord de ingresos netos ajustados antes de impuestos y antes de provisiones de 190.9 millones de dólares, un aumento del 19.7% interanual. Los puntos destacados incluyen:
- Crecimiento orgánico de préstamos netos de 430.2 millones de dólares (5.3% anualizado)
- Crecimiento de depósitos de clientes centrales de 237.4 millones de dólares (2.9% anualizado)
- Mejora en el margen de interés neto al 3.27%
- Calidad crediticia estable con provisiones para pérdidas crediticias sin cambios
- Mejora en la relación de eficiencia al 56.7%
- Sólida posición de capital con un capital Common Equity Tier 1 del 11.9%
El rendimiento del banco refleja un crecimiento constante en préstamos y depósitos, costos estables de financiamiento y una eficiencia operativa mejorada.
Cadence Bank (NYSE: CADE)는 2024년 2분기 재무 결과를 발표하며, 일반 주주에게 배당 가능한 순이익이 1억 3,510만 달러, 즉 희석 주당 0.73달러에 달한다고 전했습니다. 계속 운영에서 조정된 순이익은 1억 2,790만 달러, 즉 희석 주당 0.69달러로 2024년 1분기 대비 11.3% 증가했습니다. 이 은행은 조정된 세전 및 세전 준비금 전의 순수익에서 1억 9,090만 달러의 기록을 달성했으며, 이는 전년 대비 19.7% 증가한 수치입니다. 주요 하이라이트는 다음과 같습니다:
- 순기존 대출 성장 4억 3,020만 달러 (연율 5.3%)
- 핵심 고객 예금 성장 2억 3,740만 달러 (연율 2.9%)
- 순이자 마진 개선 3.27%
- 신용 품질 안정, 신용 손실에 대한 충당금 변화 없음
- 효율성 비율 개선 56.7%
- 11.9%의 일반 자본 비율 포함 자본 구조
은행의 성과는 안정적인 대출 및 예금 성장, 안정적인 자금 조달 비용, 개선된 운영 효율성을 반영합니다.
Cadence Bank (NYSE: CADE) a annoncé de solides résultats financiers pour le T2 2024, avec un revenu net disponible pour les actionnaires ordinaires de 135,1 millions de dollars, soit 0,73 dollar par action diluée. Le revenu net ajusté provenant des opérations continues s'élevait à 127,9 millions de dollars, soit 0,69 dollar par action diluée, en hausse de 11,3 % par rapport au T1 2024. La banque a atteint un record de revenus nets ajustés avant impôt et avant provisions de 190,9 millions de dollars, soit une augmentation de 19,7 % par rapport à l'année précédente. Les points saillants incluent :
- Croissance organique des prêts nets de 430,2 millions de dollars (5,3 % annualisé)
- Croissance des dépôts clients de base de 237,4 millions de dollars (2,9 % annualisé)
- Amélioration de la marge d'intérêt nette à 3,27 %
- Qualité du crédit stable avec provision pour pertes sur créances inchangée
- Amélioration du ratio d'efficacité à 56,7 %
- Solide position de capital avec un capital Common Equity Tier 1 de 11,9 %
Les performances de la banque reflètent une croissance stable des prêts et des dépôts, des coûts de financement stables et une efficacité opérationnelle améliorée.
Cadence Bank (NYSE: CADE) hat starke finanzielle Ergebnisse für das 2. Quartal 2024 bekannt gegeben, mit einem Nettogewinn von 135,1 Millionen US-Dollar oder 0,73 US-Dollar pro verwässerter Aktie für die gemeinsamen Aktionäre. Der bereinigte Nettogewinn aus fortgeführten Aktivitäten betrug 127,9 Millionen US-Dollar, also 0,69 US-Dollar pro verwässerter Aktie, und damit ein Anstieg von 11,3% im Vergleich zum 1. Quartal 2024. Die Bank erzielte einen Rekord von bereinigten Nettoumsätzen vor Steuern und vor Risikovorsorge in Höhe von 190,9 Millionen US-Dollar, was einem Anstieg von 19,7% im Jahresvergleich entspricht. Wichtige Highlights sind:
- Nettowachstum der organischen Kredite von 430,2 Millionen US-Dollar (annualisiert 5,3%)
- Wachstum der Kernkundeneinlagen von 237,4 Millionen US-Dollar (annualisiert 2,9%)
- Verbesserung der Nettzinsmarge auf 3,27%
- Stabile Kreditqualität mit unveränderter Risikovorsorge
- Verbesserung der Effizienzquote auf 56,7%
- Starke Kapitalposition mit einem Eigenkapitalanteil von 11,9%
Die Leistung der Bank spiegelt ein stetiges Wachstum bei Krediten und Einlagen, stabile Finanzierungskosten und verbesserte betriebliche Effizienz wider.
- Record adjusted pre-tax pre-provision net revenue of $190.9 million, up 19.7% year-over-year
- Net organic loan growth of $430.2 million, or 5.3% annualized
- Core customer deposit growth of $237.4 million, or 2.9% annualized
- Net interest margin improved to 3.27%, up 5 basis points
- Adjusted efficiency ratio improved by 339 basis points to 56.7%
- Strong capital position with Common Equity Tier 1 Capital of 11.9%
- Net charge-offs increased to $22.6 million (0.28% of average net loans) from $19.5 million in Q1 2024
- Total nonperforming assets as a percent of total assets increased to 0.46% from 0.33% year-over-year
- Total deposits declined by $261.6 million from the prior quarter
Insights
Cadence Bank's financial results for Q2 2024 indicate several positive trends that should capture the attention of investors. The net income of
The bank's ability to achieve net organic loan growth of
From a market perspective, Cadence Bank's Q2 performance is quite strong, with several metrics outperforming industry norms. The loan growth in commercial, industrial and residential mortgage sectors indicates a diversified and resilient loan portfolio, which should reduce risk exposure. The significant growth in core customer deposits by
The bank's strategic moves, such as repurchasing 256,033 shares at an average price of
The bank's credit quality metrics are stable, with net charge-offs at
Highlights for the second quarter of 2024 included:
- Reported quarterly net income available to common shareholders of
$135.1 million $0.73 $127.9 million $0.69 $0.07 11.3% , compared to the first quarter of 2024 adjusted net income from continuing operations available to common shareholders.(1) - Achieved record adjusted pre-tax pre-provision net revenue from continuing operations (PPNR)(1) of
$190.9 million $16.7 million $31.4 million $365.1 million $35.9 million 11.0% , from the same period in 2023. - Generated net organic loan growth of
$430.2 million 5.3% on an annualized basis, for the second quarter of 2024. Year-to-date, net loan growth was$815.8 million 5.0% annualized. - Grew core customer deposits, which exclude brokered deposits and public funds, by
$237.4 million 2.9% on an annualized basis. Year-to-date, core customer deposits have grown$637.2 4.0% annualized. - Continued improvement in net interest margin by 5 basis points to
3.27% , benefiting from continued loan growth, stabilized funding costs, and upward repricing of earning assets. - Experienced stable credit quality reflected by a flat linked quarter provision for credit losses and relatively stable net charge-offs as well as slight reductions in both nonperforming and criticized/classified loan levels.
- Materially enhanced operating efficiency reflected in an improvement in the adjusted efficiency ratio(1) of 339 basis points to
56.7% . - Repurchased 256,033 shares of Company common stock during the second quarter at a weighted average price of
$26.97 11.9% and Total Capital of14.2% .
"We are pleased to report another quarter of improved financial performance in virtually every aspect of our business," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "Our second quarter results reflect steady loan and core customer deposit growth combined with stable funding costs, which led to additional improvement in our net interest margin. Importantly, our credit quality metrics remained stable, reflected by a flat linked quarter provision for credit losses and slight improvement in our past due loans as well as criticized and classified loans. Finally, our efforts to improve efficiency continue to be evident in the linked quarter decline in adjusted noninterest expense and continued improvement in our adjusted efficiency ratio to
Earnings Summary
All adjusted financial results discussed herein are adjusted results from continuing operations.(3)
For the second quarter of 2024, the Company reported net income available to common shareholders of
Additionally, the Company reported adjusted PPNR from continuing operations(1) of
Net Interest Revenue
Net interest revenue, driven by continued improvement in net interest margin, increased to
Net interest revenue increased
Yield on net loans, loans held for sale, and leases excluding accretion, was
The average cost of total deposits was
Balance Sheet Activity
Loans and leases, net of unearned income, increased
Total deposits were
The June 30, 2024 loan to deposit ratio was
Total investment securities declined
In June 2024, the Company called
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Net charge-offs for the second quarter of 2024 were
Total nonperforming assets as a percent of total assets were
Noninterest Revenue
Noninterest revenue was
Wealth management revenue increased to
Credit card, debit card and merchant fee revenue was
Mortgage production and servicing revenue totaled
Noninterest Expense
Noninterest expense for the second quarter of 2024 was
The
Capital Management
Total shareholders' equity was
Summary
Rollins concluded, "We are very proud of the accomplishments the Company has reported over the first half of 2024. We announced back-to-back quarters reflecting strong operating performance driven by organic growth in loans, increases in our net interest margin, increased operating leverage and stable credit quality, all backed by strong capital and liquidity. Our Company is driven and committed to taking care of our customers, our teammates and the communities we serve."
Key Transactions
Effective May 17, 2024, the Company completed the sale of Cadence Business Solutions, its payroll processing business unit, resulting in a net gain on sale of approximately
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately
Conference Call and Webcast
The Company will conduct a conference call to discuss its second quarter 2024 financial results on July 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
(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 21 of this news release. |
(2) See Table 14 for detail on non-routine income and expenses. |
(3) Given the sale of Cadence Insurance, Inc. ("Cadence Insurance") in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented. |
Forward-Looking Statements
Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale on the Company's financial condition and future net income and earnings per share, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Table 1 Selected Financial Data (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Earnings Summary: | ||||||||
Interest revenue | $ 642,210 | $ 637,113 | $ 615,187 | $ 595,459 | $ 573,395 | $ 1,279,323 | ||
Interest expense | 285,892 | 283,205 | 280,582 | 266,499 | 239,868 | 569,097 | 411,730 | |
Net interest revenue | 356,318 | 353,908 | 334,605 | 328,960 | 333,527 | 710,226 | 687,791 | |
Provision for credit losses | 22,000 | 22,000 | 38,000 | 17,000 | 15,000 | 44,000 | 25,000 | |
Net interest revenue, after provision for credit losses | 334,318 | 331,908 | 296,605 | 311,960 | 318,527 | 666,226 | 662,791 | |
Noninterest revenue | 100,658 | 83,786 | (311,460) | 73,989 | 86,664 | 184,444 | 121,127 | |
Noninterest expense | 256,697 | 263,207 | 329,367 | 274,442 | 267,466 | 519,904 | 552,113 | |
Income (loss) from continuing operations before income taxes | 178,279 | 152,487 | (344,222) | 111,507 | 137,725 | 330,766 | 231,805 | |
Income tax expense (benefit) | 40,807 | 35,509 | (80,485) | 24,355 | 30,463 | 76,316 | 51,536 | |
Income (loss) from continuing operations | 137,472 | 116,978 | (263,737) | 87,152 | 107,262 | 254,450 | 180,269 | |
Income from discontinued operations, net of taxes | — | — | 522,801 | 5,431 | 6,766 | — | 10,388 | |
Net income | 137,472 | 116,978 | 259,064 | 92,583 | 114,028 | 254,450 | 190,657 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 4,744 | 4,744 | |
Net income available to common shareholders | $ 135,100 | $ 114,606 | $ 256,692 | $ 90,211 | $ 111,656 | $ 249,706 | $ 185,913 | |
Balance Sheet - Period End Balances | ||||||||
Total assets | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | $ 47,984,078 | $ 48,838,660 | |
Total earning assets | 43,525,688 | 43,968,692 | 44,192,887 | 43,727,058 | 44,010,411 | 43,525,688 | 44,010,411 | |
Available for sale securities | 7,921,422 | 8,306,589 | 8,075,476 | 9,643,231 | 10,254,580 | 7,921,422 | 10,254,580 | |
Loans and leases, net of unearned income | 33,312,773 | 32,882,616 | 32,497,022 | 32,520,593 | 32,556,708 | 33,312,773 | 32,556,708 | |
Allowance for credit losses (ACL) | 470,022 | 472,575 | 468,034 | 446,859 | 466,013 | 470,022 | 466,013 | |
Net book value of acquired loans | 5,543,419 | 6,011,007 | 6,353,344 | 6,895,487 | 7,357,174 | 5,543,419 | 7,357,174 | |
Unamortized net discount on acquired loans | 20,874 | 23,715 | 26,928 | 30,761 | 37,000 | 20,874 | 37,000 | |
Total deposits | 37,858,659 | 38,120,226 | 38,497,137 | 38,335,878 | 38,701,669 | 37,858,659 | 38,701,669 | |
Total deposits and repurchase agreements | 37,913,693 | 38,214,616 | 38,948,653 | 39,198,467 | 39,492,427 | 37,913,693 | 39,492,427 | |
Other short-term borrowings | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,223 | 3,500,226 | 3,500,000 | 3,500,226 | |
Subordinated and long-term debt | 269,353 | 430,123 | 438,460 | 449,323 | 449,733 | 269,353 | 449,733 | |
Total shareholders' equity | 5,287,758 | 5,189,932 | 5,167,843 | 4,395,257 | 4,485,850 | 5,287,758 | 4,485,850 | |
Total shareholders' equity, excluding AOCI (1) | 6,070,220 | 5,981,265 | 5,929,672 | 5,705,178 | 5,648,925 | 6,070,220 | 5,648,925 | |
Common shareholders' equity | 5,120,765 | 5,022,939 | 5,000,850 | 4,228,264 | 4,318,857 | 5,120,765 | 4,318,857 | |
Common shareholders' equity, excluding AOCI (1) | $ 5,903,227 | $ 5,814,272 | $ 5,762,679 | $ 5,538,185 | $ 5,481,932 | $ 5,903,227 | ||
Balance Sheet - Average Balances | ||||||||
Total assets | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 | $ 48,417,630 | $ 48,860,807 | |
Total earning assets | 43,851,822 | 44,226,077 | 43,754,664 | 44,003,639 | 44,229,519 | 44,038,950 | 44,024,558 | |
Available for sale securities | 8,033,552 | 8,269,708 | 9,300,714 | 10,004,441 | 10,655,791 | 8,151,630 | 11,003,194 | |
Loans and leases, net of unearned income | 32,945,526 | 32,737,574 | 32,529,030 | 32,311,572 | 31,901,096 | 32,841,550 | 31,399,156 | |
Total deposits | 38,100,087 | 38,421,272 | 38,215,379 | 38,465,975 | 38,934,793 | 38,260,680 | 38,919,505 | |
Total deposits and repurchase agreements | 38,165,908 | 38,630,620 | 38,968,397 | 39,293,030 | 39,708,963 | 38,398,265 | 39,670,703 | |
Other short-term borrowings | 3,500,000 | 3,500,000 | 3,503,320 | 3,510,942 | 3,541,985 | 3,500,000 | 3,434,688 | |
Subordinated and long-term debt | 404,231 | 434,579 | 443,251 | 449,568 | 455,617 | 419,405 | 458,982 | |
Total shareholders' equity | 5,207,254 | 5,194,048 | 4,507,343 | 4,505,162 | 4,539,353 | 5,200,651 | 4,468,302 | |
Common shareholders' equity | $ 5,040,261 | $ 5,027,055 | $ 4,340,350 | $ 4,338,169 | $ 4,372,360 | $ 5,033,658 | ||
Nonperforming Assets: | ||||||||
Nonperforming loans and leases (NPL) (2) (3) | 216,746 | 241,007 | 216,141 | 150,038 | 157,243 | 216,746 | 157,243 | |
Other real estate owned and other assets | 4,793 | 5,280 | 6,246 | 2,927 | 2,857 | 4,793 | 2,857 | |
Nonperforming assets (NPA) | $ 221,539 | $ 246,287 | $ 222,387 | $ 152,965 | $ 160,100 | $ 221,539 | $ 160,100 | |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26. |
(2) | At June 30, 2024, |
(3) | At June 30, 2024, NPL does not include nonperforming loans held for sale of |
Table 2 Selected Financial Ratios | ||||||||
Quarter Ended | Year-to-date | |||||||
Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | ||
Financial Ratios and Other Data: | ||||||||
Return on average assets from continuing operations (2) | 1.15 % | 0.97 % | (2.16) % | 0.71 % | 0.88 % | 1.06 % | 0.74 % | |
Return on average assets (2) | 1.15 % | 0.97 % | 2.12 % | 0.75 % | 0.93 % | 1.06 % | 0.79 % | |
Adjusted return on average assets from continuing operations (1)(2) | 1.09 | 0.97 | 0.62 | 0.82 | 0.92 | 1.03 | 0.97 | |
Return on average common shareholders' equity from continuing operations (2) | 10.78 | 9.17 | (24.32) | 7.75 | 9.62 | 9.98 | 8.23 | |
Return on average common shareholders' equity (2) | 10.78 | 9.17 | 23.46 | 8.25 | 10.24 | 9.98 | 8.72 | |
Adjusted return on average common shareholders' equity from continuing operations (1)(2) | 10.21 | 9.15 | 6.65 | 8.93 | 10.10 | 9.68 | 10.82 | |
Return on average tangible common equity from continuing operations (1)(2) | 15.18 | 12.94 | (36.79) | 11.75 | 14.55 | 14.07 | 12.56 | |
Return on average tangible common equity (1)(2) | 15.18 | 12.94 | 35.49 | 12.50 | 15.49 | 14.07 | 13.30 | |
Adjusted return on average tangible common equity from continuing operations (1)(2) | 14.37 | 12.92 | 10.06 | 13.53 | 15.27 | 13.65 | 16.52 | |
Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2) | 1.67 | 1.44 | (2.51) | 1.05 | 1.25 | 1.56 | 1.06 | |
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2) | 1.59 | 1.44 | 1.13 | 1.18 | 1.30 | 1.52 | 1.36 | |
Net interest margin-fully taxable equivalent | 3.27 | 3.22 | 3.04 | 2.98 | 3.03 | 3.25 | 3.16 | |
Net interest rate spread-fully taxable equivalent | 2.45 | 2.40 | 2.25 | 2.21 | 2.29 | 2.42 | 2.46 | |
Efficiency ratio fully tax equivalent (1) | 56.09 | 60.05 | NM | 67.93 | 63.49 | 58.03 | 68.08 | |
Adjusted efficiency ratio fully tax equivalent (1) | 56.73 | 60.12 | 66.01 | 64.35 | 61.87 | 58.42 | 61.58 | |
Loan/deposit ratio | 87.99 % | 86.26 % | 84.41 % | 84.83 % | 84.12 % | 87.99 % | 84.12 % | |
Full time equivalent employees | 5,290 | 5,322 | 5,333 | 6,160 | 6,479 | 5,290 | 6,479 | |
Credit Quality Ratios: | ||||||||
Net charge-offs to average loans and leases (2) | 0.28 % | 0.24 % | 0.29 % | 0.42 % | 0.16 % | 0.26 % | 0.09 % | |
Provision for credit losses to average loans and leases (2) | 0.27 | 0.27 | 0.46 | 0.21 | 0.19 | 0.27 | 0.16 | |
ACL to loans and leases, net | 1.41 | 1.44 | 1.44 | 1.37 | 1.43 | 1.41 | 1.43 | |
ACL to NPL | 216.85 | 196.08 | 216.54 | 297.83 | 296.36 | 216.85 | 296.36 | |
NPL to loans and leases, net | 0.65 | 0.73 | 0.67 | 0.46 | 0.48 | 0.65 | 0.48 | |
NPA to total assets | 0.46 | 0.51 | 0.45 | 0.32 | 0.33 | 0.46 | 0.33 | |
Equity Ratios: | ||||||||
Total shareholders' equity to total assets | 11.02 % | 10.74 % | 10.56 % | 9.06 % | 9.19 % | 11.02 % | 9.19 % | |
Total common shareholders' equity to total assets | 10.67 | 10.40 | 10.22 | 8.71 | 8.84 | 10.67 | 8.84 | |
Tangible common shareholders' equity to tangible assets (1) | 7.87 | 7.60 | 7.44 | 5.86 | 6.00 | 7.87 | 6.00 | |
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1) | 9.40 | 9.13 | 8.90 | 8.41 | 8.25 | 9.40 | 8.25 | |
Capital Adequacy (3): | ||||||||
Common Equity Tier 1 capital | 11.9 % | 11.7 % | 11.6 % | 10.3 % | 10.1 % | 11.9 % | 10.1 % | |
Tier 1 capital | 12.3 | 12.2 | 12.1 | 10.8 | 10.5 | 12.3 | 10.5 | |
Total capital | 14.2 | 14.5 | 14.3 | 12.9 | 12.7 | 14.2 | 12.7 | |
Tier 1 leverage capital | 9.7 | 9.5 | 9.3 | 8.6 | 8.5 | 9.7 | 8.5 | |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26. |
(2) | Annualized. |
(3) | Current quarter regulatory capital ratios are estimated. |
NM - Not meaningful | |
Table 3 Selected Financial Information | ||||||||
Quarter Ended | Year-to-date | |||||||
Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | ||
Common Share Data: | ||||||||
Diluted earnings (losses) per share from continuing operations | $ 0.73 | $ 0.62 | $ (1.46) | $ 0.46 | $ 0.57 | $ 1.35 | $ 0.96 | |
Adjusted earnings per share from continuing operations (1) | 0.69 | 0.62 | 0.40 | 0.53 | 0.60 | 1.31 | 1.26 | |
Diluted earnings per share | 0.73 | 0.62 | 1.41 | 0.49 | 0.61 | 1.35 | 1.01 | |
Cash dividends per share | 0.250 | 0.250 | 0.235 | 0.235 | 0.235 | 0.500 | 0.47 | |
Book value per share | 28.07 | 27.50 | 27.35 | 23.15 | 23.65 | 28.07 | 23.65 | |
Tangible book value per share (1) | 20.08 | 19.48 | 19.32 | 15.09 | 15.56 | 20.08 | 15.56 | |
Market value per share (last) | 28.28 | 29.00 | 29.59 | 21.22 | 19.88 | 28.28 | 19.88 | |
Market value per share (high) | 29.95 | 30.03 | 31.45 | 25.87 | 21.73 | 30.03 | 28.18 | |
Market value per share (low) | 26.16 | 24.99 | 19.67 | 19.00 | 16.95 | 24.99 | 16.95 | |
Market value per share (average) | 28.14 | 27.80 | 24.40 | 22.56 | 19.73 | 27.97 | 22.32 | |
Dividend payout ratio from continuing operations | 34.25 % | 40.48 % | (16.13) % | 51.09 % | 41.23 % | 37.04 % | 48.96 % | |
Adjusted dividend payout ratio from continuing operations (1) | 36.23 % | 40.32 % | 58.75 % | 44.34 % | 39.17 % | 38.17 % | 37.30 % | |
Total shares outstanding | 182,430,427 | 182,681,325 | 182,871,775 | 182,611,075 | 182,626,229 | 182,430,427 | 182,626,229 | |
Average shares outstanding - diluted | 185,260,963 | 185,574,130 | 182,688,190 | 184,645,004 | 183,631,570 | 185,417,547 | 183,770,759 | |
Yield/Rate: | ||||||||
(Taxable equivalent basis) | ||||||||
Loans, loans held for sale, and leases | 6.59 % | 6.50 % | 6.48 % | 6.39 % | 6.24 % | 6.55 % | 6.13 % | |
Loans, loans held for sale, and leases excluding net accretion on | 6.56 | 6.46 | 6.43 | 6.31 | 6.18 | 6.51 | 6.03 | |
Available for sale securities: | ||||||||
Taxable | 3.18 | 3.11 | 2.45 | 2.07 | 2.09 | 3.15 | 1.94 | |
Tax-exempt | 4.12 | 4.25 | 3.78 | 3.23 | 3.21 | 4.19 | 3.21 | |
Other investments | 5.45 | 5.48 | 5.41 | 5.36 | 5.05 | 5.47 | 4.85 | |
Total interest earning assets and revenue | 5.90 | 5.80 | 5.59 | 5.38 | 5.21 | 5.85 | 5.05 | |
Deposits | 2.53 | 2.45 | 2.32 | 2.14 | 1.87 | 2.49 | 1.57 | |
Interest bearing demand and money market | 3.13 | 3.11 | 3.02 | 2.79 | 2.49 | 3.12 | 2.26 | |
Savings | 0.57 | 0.57 | 0.56 | 0.56 | 0.51 | 0.57 | 0.43 | |
Time | 4.53 | 4.42 | 4.22 | 3.98 | 3.69 | 4.47 | 3.15 | |
Total interest bearing deposits | 3.28 | 3.21 | 3.10 | 2.88 | 2.58 | 3.24 | 2.23 | |
Fed funds purchased, securities sold under agreement to | 4.47 | 4.86 | 4.33 | 4.27 | 3.97 | 4.76 | 3.85 | |
Short-term FHLB borrowings | — | — | — | 3.54 | 5.24 | — | 4.91 | |
Short-term BTFP borrowings | 4.77 | 4.84 | 5.04 | 5.15 | 5.15 | 4.81 | 5.15 | |
Total interest bearing deposits and short-term borrowings | 3.44 | 3.39 | 3.33 | 3.16 | 2.90 | 3.41 | 2.56 | |
Subordinated and long-term borrowings | 4.41 | 4.35 | 4.18 | 4.22 | 4.23 | 4.38 | 4.25 | |
Total interest bearing liabilities | 3.45 | 3.40 | 3.34 | 3.17 | 2.92 | 3.43 | 2.59 | |
Interest bearing liabilities to interest earning assets | 75.97 % | 75.73 % | 76.08 % | 75.74 % | 74.57 % | 75.85 % | 72.92 % | |
Net interest income tax equivalent adjustment (in thousands) | $ 644 | $ 636 | $ 987 | $ 1,081 | $ 1,063 | $ 1,280 | $ 2,114 | |
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26. |
NM - Not meaningful |
Table 4 Consolidated Balance Sheets (Unaudited) | |||||
As of | |||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
ASSETS | |||||
Cash and due from banks | $ 516,715 | $ 427,543 | $ 798,177 | $ 594,787 | $ 722,625 |
Interest bearing deposits with other banks and Federal funds sold | 2,093,820 | 2,609,931 | 3,434,088 | 1,400,858 | 1,005,889 |
Available for sale securities, at fair value | 7,921,422 | 8,306,589 | 8,075,476 | 9,643,231 | 10,254,580 |
Loans and leases, net of unearned income | 33,312,773 | 32,882,616 | 32,497,022 | 32,520,593 | 32,556,708 |
Allowance for credit losses | 470,022 | 472,575 | 468,034 | 446,859 | 466,013 |
Net loans and leases | 32,842,751 | 32,410,041 | 32,028,988 | 32,073,734 | 32,090,695 |
Loans held for sale, at fair value | 197,673 | 169,556 | 186,301 | 162,376 | 193,234 |
Premises and equipment, net | 808,705 | 822,666 | 802,133 | 789,698 | 804,732 |
Goodwill | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 |
Other intangible assets, net | 91,027 | 96,126 | 100,191 | 104,596 | 109,033 |
Bank-owned life insurance | 648,970 | 645,167 | 642,840 | 639,073 | 634,985 |
Other assets | 1,496,072 | 1,458,459 | 1,498,531 | 1,590,769 | 1,486,070 |
Assets of discontinued operations | — | — | — | 156,103 | 169,032 |
Total Assets | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 8,586,265 | $ 8,820,468 | $ 9,232,068 | $ 9,648,191 | $ 10,223,508 |
Interest bearing | 18,514,015 | 18,945,982 | 19,276,596 | 18,334,551 | 18,088,711 |
Savings | 2,613,950 | 2,694,777 | 2,720,913 | 2,837,348 | 2,983,709 |
Time deposits | 8,144,429 | 7,658,999 | 7,267,560 | 7,515,788 | 7,405,741 |
Total deposits | 37,858,659 | 38,120,226 | 38,497,137 | 38,335,878 | 38,701,669 |
Securities sold under agreement to repurchase | 55,034 | 94,390 | 451,516 | 862,589 | 790,758 |
Other short-term borrowings | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,223 | 3,500,226 |
Subordinated and long-term debt | 269,353 | 430,123 | 438,460 | 449,323 | 449,733 |
Other liabilities | 1,013,274 | 979,192 | 879,554 | 876,195 | 806,305 |
Liabilities of discontinued operations | — | — | — | 103,545 | 104,119 |
Total Liabilities | 42,696,320 | 43,123,931 | 43,766,667 | 44,127,753 | 44,352,810 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 456,076 | 456,703 | 457,179 | 456,528 | 456,566 |
Capital surplus | 2,724,656 | 2,724,587 | 2,743,066 | 2,733,003 | 2,724,021 |
Accumulated other comprehensive loss | (782,462) | (791,333) | (761,829) | (1,309,921) | (1,163,075) |
Retained earnings | 2,722,495 | 2,632,982 | 2,562,434 | 2,348,654 | 2,301,345 |
Total Shareholders' Equity | 5,287,758 | 5,189,932 | 5,167,843 | 4,395,257 | 4,485,850 |
Total Liabilities & Shareholders' Equity | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 |
Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited) | |||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
ASSETS | |||||
Cash and due from banks | $ 456,938 | $ 557,009 | $ 443,504 | $ 362,479 | $ 402,744 |
Interest bearing deposits with other banks and Federal funds sold | 2,758,385 | 3,146,439 | 1,811,686 | 1,571,973 | 1,605,594 |
Available for sale securities, at fair value | 8,033,552 | 8,269,708 | 9,300,714 | 10,004,441 | 10,655,791 |
Loans and leases, net of unearned income | 32,945,526 | 32,737,574 | 32,529,030 | 32,311,572 | 31,901,096 |
Allowance for credit losses | 475,181 | 473,849 | 447,879 | 459,698 | 457,027 |
Net loans and leases | 32,470,345 | 32,263,725 | 32,081,151 | 31,851,874 | 31,444,069 |
Loans held for sale, at fair value | 114,359 | 72,356 | 113,234 | 115,653 | 67,038 |
Premises and equipment, net | 815,920 | 808,473 | 795,164 | 811,095 | 804,526 |
Goodwill | 1,367,358 | 1,367,785 | 1,367,916 | 1,367,785 | 1,367,785 |
Other intangible assets, net | 93,743 | 98,350 | 102,765 | 107,032 | 113,094 |
Bank-owned life insurance | 646,124 | 643,189 | 640,439 | 636,335 | 632,489 |
Other assets | 1,435,995 | 1,415,506 | 1,787,603 | 1,826,471 | 1,973,991 |
Total Assets | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 8,757,029 | $ 9,072,619 | $ 9,625,912 | $ 9,921,617 | $ 10,725,108 |
Interest bearing | 18,770,093 | 19,303,845 | 18,292,826 | 17,970,463 | 17,997,618 |
Savings | 2,652,019 | 2,696,452 | 2,758,977 | 2,913,027 | 3,088,174 |
Time deposits | 7,920,946 | 7,348,356 | 7,537,664 | 7,660,868 | 7,123,893 |
Total deposits | 38,100,087 | 38,421,272 | 38,215,379 | 38,465,975 | 38,934,793 |
Securities sold under agreement to repurchase | 65,821 | 209,348 | 753,018 | 827,055 | 774,170 |
Other short-term borrowings | 3,500,000 | 3,500,000 | 3,503,320 | 3,510,942 | 3,541,985 |
Subordinated and long-term debt | 404,231 | 434,579 | 443,251 | 449,568 | 455,617 |
Other liabilities | 915,326 | 883,293 | 1,021,865 | 896,436 | 821,203 |
Total Liabilities | 42,985,465 | 43,448,492 | 43,936,833 | 44,149,976 | 44,527,768 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 456,618 | 456,437 | 456,636 | 456,557 | 456,755 |
Capital surplus | 2,724,838 | 2,733,902 | 2,733,985 | 2,726,686 | 2,717,866 |
Accumulated other comprehensive loss | (838,710) | (777,940) | (1,279,235) | (1,175,077) | (1,087,389) |
Retained earnings | 2,697,515 | 2,614,656 | 2,428,964 | 2,330,003 | 2,285,128 |
Total Shareholders' Equity | 5,207,254 | 5,194,048 | 4,507,343 | 4,505,162 | 4,539,353 |
Total Liabilities & Shareholders' Equity | $ 48,192,719 | $ 48,642,540 | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 |
Table 6 Consolidated Statements of Income (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(Dollars in thousands, except per share data) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
INTEREST REVENUE: | ||||||||
Loans and leases | $ 539,685 | $ 528,940 | $ 531,340 | $ 520,126 | $ 496,262 | $ 1,068,624 | $ 953,346 | |
Available for sale securities: | ||||||||
Taxable | 62,852 | 63,405 | 55,801 | 50,277 | 53,531 | 126,257 | 102,043 | |
Tax-exempt | 638 | 687 | 1,927 | 2,375 | 2,427 | 1,325 | 4,904 | |
Loans held for sale | 1,652 | 1,184 | 1,418 | 1,468 | 961 | 2,837 | 1,564 | |
Short-term investments | 37,383 | 42,897 | 24,701 | 21,213 | 20,214 | 80,280 | 37,664 | |
Total interest revenue | 642,210 | 637,113 | 615,187 | 595,459 | 573,395 | 1,279,323 | 1,099,521 | |
INTEREST EXPENSE: | ||||||||
Interest bearing demand deposits and money market accounts | 146,279 | 149,403 | 139,144 | 126,296 | 111,938 | 295,682 | 207,282 | |
Savings | 3,743 | 3,801 | 3,918 | 4,108 | 3,915 | 7,544 | 6,929 | |
Time deposits | 89,173 | 80,670 | 80,143 | 76,867 | 65,517 | 169,842 | 89,467 | |
Federal funds purchased and securities sold under agreement to repurchase | 724 | 2,523 | 8,254 | 9,004 | 7,656 | 3,247 | 15,323 | |
Short-term debt | 41,544 | 42,109 | 44,451 | 45,438 | 46,036 | 83,653 | 83,051 | |
Subordinated and long-term debt | 4,429 | 4,699 | 4,672 | 4,786 | 4,806 | 9,129 | 9,678 | |
Total interest expense | 285,892 | 283,205 | 280,582 | 266,499 | 239,868 | 569,097 | 411,730 | |
Net interest revenue | 356,318 | 353,908 | 334,605 | 328,960 | 333,527 | 710,226 | 687,791 | |
Provision for credit losses | 22,000 | 22,000 | 38,000 | 17,000 | 15,000 | 44,000 | 25,000 | |
Net interest revenue, after provision for credit losses | 334,318 | 331,908 | 296,605 | 311,960 | 318,527 | 666,226 | 662,791 | |
NONINTEREST REVENUE: | ||||||||
Mortgage banking | 6,173 | 6,443 | (1,137) | 5,684 | 8,356 | 12,616 | 14,432 | |
Credit card, debit card and merchant fees | 12,770 | 12,162 | 12,902 | 12,413 | 12,617 | 24,932 | 24,469 | |
Deposit service charges | 17,652 | 18,338 | 11,161 | 16,867 | 17,208 | 35,989 | 33,690 | |
Security (losses) gains, net | (4) | (9) | (384,524) | 64 | 69 | (12) | (51,192) | |
Wealth management | 24,006 | 22,833 | 22,576 | 21,079 | 21,741 | 46,839 | 43,272 | |
Other noninterest income | 40,061 | 24,019 | 27,562 | 17,882 | 26,673 | 64,080 | 56,456 | |
Total noninterest revenue | 100,658 | 83,786 | (311,460) | 73,989 | 86,664 | 184,444 | 121,127 | |
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 148,038 | 156,650 | 148,081 | 161,627 | 159,276 | 304,689 | 325,014 | |
Occupancy and equipment | 29,367 | 28,640 | 28,009 | 27,069 | 28,106 | 58,007 | 55,893 | |
Data processing and software | 29,467 | 30,028 | 32,922 | 29,127 | 27,289 | 59,494 | 58,395 | |
Merger expense | — | — | — | — | 122 | — | 5,192 | |
Amortization of intangibles | 3,999 | 4,066 | 4,405 | 4,436 | 6,081 | 8,065 | 10,547 | |
Deposit insurance assessments | 15,741 | 8,414 | 45,733 | 10,425 | 7,705 | 24,156 | 16,066 | |
Pension settlement expense | — | — | 11,226 | 600 | — | — | — | |
Other noninterest expense | 30,085 | 35,409 | 58,991 | 41,158 | 38,887 | 65,493 | 81,006 | |
Total noninterest expense | 256,697 | 263,207 | 329,367 | 274,442 | 267,466 | 519,904 | 552,113 | |
Income (loss) from continuing operations before taxes | 178,279 | 152,487 | (344,222) | 111,507 | 137,725 | 330,766 | 231,805 | |
Income tax expense (benefit) | 40,807 | 35,509 | (80,485) | 24,355 | 30,463 | 76,316 | 51,536 | |
Income (loss) from continuing operations | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | $ 107,262 | 254,450 | 180,269 | |
Income from discontinued operations | — | — | 706,129 | 7,242 | 9,238 | — | 14,220 | |
Income tax expense from discontinued operations | — | — | 183,328 | 1,811 | 2,472 | — | 3,832 | |
Income from discontinued operations, net of taxes | — | — | 522,801 | 5,431 | 6,766 | — | 10,388 | |
Net income | 137,472 | 116,978 | 259,064 | 92,583 | 114,028 | 254,450 | 190,657 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 4,744 | 4,744 | |
Net income available to common shareholders | $ 135,100 | $ 114,606 | $ 256,692 | $ 90,211 | $ 111,656 | $ 249,706 | $ 185,913 | |
Diluted earnings (losses) per common share from continuing operations | $ 0.73 | $ 0.62 | $ (1.46) | $ 0.46 | $ 0.57 | $ 1.35 | $ 0.96 | |
Diluted earnings per common share | $ 0.73 | $ 0.62 | $ 1.41 | $ 0.49 | $ 0.61 | $ 1.35 | $ 1.01 | |
Table 7 Selected Loan Portfolio Data (Unaudited) | |||||
Quarter Ended | |||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
LOAN AND LEASE PORTFOLIO: | |||||
Commercial and industrial | |||||
Non-real estate | $ 9,136,929 | $ 9,121,457 | $ 8,935,598 | $ 9,199,024 | $ 9,636,481 |
Owner occupied | 4,475,647 | 4,442,357 | 4,349,060 | 4,361,530 | 4,358,000 |
Total commercial and industrial | 13,612,576 | 13,563,814 | 13,284,658 | 13,560,554 | 13,994,481 |
Commercial real estate | |||||
Construction, acquisition and development | 3,892,527 | 3,864,351 | 3,910,962 | 3,819,307 | 3,744,114 |
Income producing | 5,851,340 | 5,783,943 | 5,736,871 | 5,720,606 | 5,596,134 |
Total commercial real estate | 9,743,867 | 9,648,294 | 9,647,833 | 9,539,913 | 9,340,248 |
Consumer | |||||
Residential mortgages | 9,740,713 | 9,447,675 | 9,329,692 | 9,186,179 | 8,989,614 |
Other consumer | 215,617 | 222,833 | 234,839 | 233,947 | 232,365 |
Total consumer | 9,956,330 | 9,670,508 | 9,564,531 | 9,420,126 | 9,221,979 |
Total loans and leases, net of unearned income | $ 33,312,773 | $ 32,882,616 | $ 32,497,022 | $ 32,520,593 | $ 32,556,708 |
NONPERFORMING ASSETS | |||||
Nonperforming Loans and Leases | |||||
Commercial and industrial | |||||
Non-real estate | $ 121,171 | $ 149,683 | $ 131,559 | $ 67,962 | $ 72,592 |
Owner occupied | 13,700 | 5,962 | 7,097 | 6,486 | 7,541 |
Total commercial and industrial | 134,871 | 155,645 | 138,656 | 74,448 | 80,133 |
Commercial real estate | |||||
Construction, acquisition and development | 4,923 | 3,787 | 1,859 | 4,608 | 4,496 |
Income producing | 15,002 | 19,428 | 17,485 | 12,251 | 19,205 |
Total commercial real estate | 19,925 | 23,215 | 19,344 | 16,859 | 23,701 |
Consumer | |||||
Residential mortgages | 61,677 | 61,886 | 57,881 | 58,488 | 53,171 |
Other consumer | 273 | 261 | 260 | 243 | 238 |
Total consumer | 61,950 | 62,147 | 58,141 | 58,731 | 53,409 |
Total nonperforming loans and leases (1) | $ 216,746 | $ 241,007 | $ 216,141 | $ 150,038 | $ 157,243 |
Other real estate owned and repossessed assets | 4,793 | 5,280 | 6,246 | 2,927 | 2,857 |
Total nonperforming assets | $ 221,539 | $ 246,287 | $ 222,387 | $ 152,965 | $ 160,100 |
Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA | $ 71,418 | $ 59,897 | $ 49,551 | $ 42,046 | $ 35,322 |
Loans and leases 90+ days past due, still accruing | $ 6,150 | $ 30,048 | $ 22,466 | $ 9,152 | $ 4,412 |
(1) At June 30, 2024, NPL does not include nonperforming loans held for sale of |
Table 8 Allowance for Credit Losses (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
ALLOWANCE FOR CREDIT LOSSES: | |||||
Balance, beginning of period | $ 472,575 | $ 468,034 | $ 446,859 | $ 466,013 | $ 453,727 |
Charge-offs: | |||||
Commercial and industrial | (23,340) | (16,997) | (21,385) | (34,959) | (13,598) |
Commercial real estate | (649) | (2,244) | (2,290) | (931) | (126) |
Consumer | (2,294) | (2,395) | (3,229) | (1,608) | (1,916) |
Total loans charged-off | (26,283) | (21,636) | (26,904) | (37,498) | (15,640) |
Recoveries: | |||||
Commercial and industrial | 2,943 | 1,312 | 2,117 | 2,240 | 1,360 |
Commercial real estate | 101 | 150 | 95 | 201 | 618 |
Consumer | 686 | 715 | 867 | 903 | 948 |
Total recoveries | 3,730 | 2,177 | 3,079 | 3,344 | 2,926 |
Net charge-offs | (22,553) | (19,459) | (23,825) | (34,154) | (12,714) |
Provision for credit losses related to loans and leases | 20,000 | 24,000 | 45,000 | 15,000 | 25,000 |
Balance, end of period | $ 470,022 | $ 472,575 | $ 468,034 | $ 446,859 | $ 466,013 |
Average loans and leases, net of unearned income, for period | |||||
Ratio: Net charge-offs to average loans and leases (2) | 0.28 % | 0.24 % | 0.29 % | 0.42 % | 0.16 % |
RESERVE FOR UNFUNDED COMMITMENTS (1) | |||||
Balance, beginning of period | $ 6,551 | $ 8,551 | $ 15,551 | $ 13,551 | $ 23,551 |
Provision (reversal) for credit losses for unfunded commitments | 2,000 | (2,000) | (7,000) | 2,000 | (10,000) |
Balance, end of period | $ 8,551 | $ 6,551 | $ 8,551 | $ 15,551 | $ 13,551 |
(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) | ||||||
June 30, 2024 | ||||||
(In thousands) | Pass | Special | Substandard | Impaired | Purchased | Total |
LOAN AND LEASE PORTFOLIO: | ||||||
Commercial and industrial | ||||||
Non-real estate | $ 8,657,327 | $ 116,208 | $ 309,809 | $ 49,914 | $ 3,671 | $ 9,136,929 |
Owner occupied | 4,413,813 | 9,872 | 42,860 | 7,998 | 1,104 | 4,475,647 |
Total commercial and industrial | 13,071,140 | 126,080 | 352,669 | 57,912 | 4,775 | 13,612,576 |
Commercial real estate | ||||||
Construction, acquisition and development | 3,875,914 | 926 | 14,273 | 1,414 | — | 3,892,527 |
Income producing | 5,655,410 | 12,007 | 170,305 | 13,618 | — | 5,851,340 |
Total commercial real estate | 9,531,324 | 12,933 | 184,578 | 15,032 | — | 9,743,867 |
Consumer | ||||||
Residential mortgages | 9,658,697 | 799 | 79,759 | — | 1,458 | 9,740,713 |
Other consumer | 215,104 | — | 513 | — | — | 215,617 |
Total consumer | 9,873,801 | 799 | 80,272 | — | 1,458 | 9,956,330 |
Total loans and leases, net of unearned income | $ 32,476,265 | $ 139,812 | $ 617,519 | $ 72,944 | $ 6,233 | $ 33,312,773 |
March 31, 2024 | |||||||
(In thousands) | Pass | Special | Substandard | Doubtful | Impaired | Purchased | 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 | $ 150,534 | $ 599,226 | $ 16 | $ 113,265 | $ 6,427 | ||
Table 10 Geographical Loan Information (Unaudited) | |||||||||||
June 30, 2024 | |||||||||||
(Dollars in thousands) | Other | Total | |||||||||
LOAN AND LEASE PORTFOLIO: | |||||||||||
Commercial and industrial | |||||||||||
Non-real estate | $ 385,251 | $ 166,222 | $ 516,717 | $ 491,184 | $ 351,731 | $ 535,447 | $ 74,535 | $ 331,710 | $ 3,644,417 | $ 2,639,715 | $ 9,136,929 |
Owner occupied | 346,525 | 241,106 | 311,070 | 311,358 | 294,390 | 602,399 | 97,739 | 161,289 | 1,761,399 | 348,372 | 4,475,647 |
Total commercial and industrial | 731,776 | 407,328 | 827,787 | 802,542 | 646,121 | 1,137,846 | 172,274 | 492,999 | 5,405,816 | 2,988,087 | 13,612,576 |
Commercial real estate | |||||||||||
Construction, acquisition and | 195,318 | 68,561 | 420,107 | 529,531 | 48,133 | 210,904 | 43,146 | 168,474 | 1,632,361 | 575,992 | 3,892,527 |
Income producing | 426,133 | 261,575 | 373,876 | 560,683 | 213,649 | 430,971 | 203,927 | 297,257 | 2,260,782 | 822,487 | 5,851,340 |
Total commercial real estate | 621,451 | 330,136 | 793,983 | 1,090,214 | 261,782 | 641,875 | 247,073 | 465,731 | 3,893,143 | 1,398,479 | 9,743,867 |
Consumer | |||||||||||
Residential mortgages | 1,257,791 | 393,730 | 679,028 | 426,349 | 464,187 | 1,177,933 | 202,196 | 747,121 | 4,146,204 | 246,174 | 9,740,713 |
Other consumer | 25,256 | 17,164 | 4,922 | 7,111 | 11,029 | 85,548 | 1,810 | 16,079 | 41,714 | 4,984 | 215,617 |
Total consumer | 1,283,047 | 410,894 | 683,950 | 433,460 | 475,216 | 1,263,481 | 204,006 | 763,200 | 4,187,918 | 251,158 | 9,956,330 |
Total | $ 2,636,274 | $ 1,148,358 | $ 2,305,720 | $ 2,326,216 | $ 1,383,119 | $ 3,043,202 | $ 623,353 | $ 1,721,930 | $ 13,486,877 | $ 4,637,724 | $ 33,312,773 |
Loan growth, excluding loans | $ (30,416) | $ 3,395 | $ 21,100 | $ (6,790) | $ 32,136 | $ 25,581 | $ 19,822 | $ 17,667 | $ 61,050 | $ 286,612 | $ 430,157 |
Loan growth, excluding loans | (4.59) % | 1.19 % | 3.71 % | (1.17) % | 9.57 % | 3.41 % | 13.21 % | 4.17 % | 1.83 % | 26.49 % | 5.26 % |
March 31, 2024 | |||||||||||
(Dollars in thousands) | 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 | 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 loans and leases, net of | $ 2,666,690 | $ 1,144,963 | $ 2,284,620 | $ 2,333,006 | $ 1,350,983 | $ 3,017,621 | $ 603,531 | $ 1,704,263 | $ 4,351,112 | ||
Table 11 Noninterest Revenue and Expense (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
NONINTEREST REVENUE: | ||||||||
Mortgage banking excl. MSR and MSR hedge market value adjustment | $ 7,171 | $ 6,460 | $ 3,931 | $ 5,842 | $ 6,774 | $ 13,631 | $ 15,153 | |
MSR and MSR hedge market value adjustment | (998) | (17) | (5,068) | (158) | 1,582 | (1,015) | (721) | |
Credit card, debit card and merchant fees | 12,770 | 12,162 | 12,902 | 12,413 | 12,617 | 24,932 | 24,469 | |
Deposit service charges | 17,652 | 18,338 | 11,161 | 16,867 | 17,208 | 35,989 | 33,690 | |
Security (losses) gains, net | (4) | (9) | (384,524) | 64 | 69 | (12) | (51,192) | |
Trust income | 12,645 | 11,322 | 11,301 | 10,574 | 10,084 | 23,967 | 20,637 | |
Annuity fees | 1,666 | 1,705 | 1,839 | 1,882 | 1,702 | 3,371 | 3,893 | |
Brokerage commissions and fees | 9,695 | 9,806 | 9,436 | 8,623 | 9,955 | 19,501 | 18,742 | |
Bank-owned life insurance | 4,370 | 3,946 | 4,728 | 4,108 | 3,811 | 8,316 | 7,458 | |
Other miscellaneous income | 35,691 | 20,073 | 22,834 | 13,774 | 22,862 | 55,764 | 48,998 | |
Total noninterest revenue | $ 100,658 | $ 83,786 | $ (311,460) | $ 73,989 | $ 86,664 | $ 184,444 | $ 121,127 | |
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | $ 148,038 | $ 156,650 | $ 148,081 | $ 161,627 | $ 159,276 | $ 304,689 | $ 325,014 | |
Occupancy and equipment | 29,367 | 28,640 | 28,009 | 27,069 | 28,106 | 58,007 | 55,893 | |
Deposit insurance assessments | 15,741 | 8,414 | 45,733 | 10,425 | 7,705 | 24,156 | 16,066 | |
Pension settlement expense | — | — | 11,226 | 600 | — | — | — | |
Advertising and public relations | 6,537 | 4,224 | 12,632 | 5,671 | 5,618 | 10,760 | 9,859 | |
Foreclosed property expense | 515 | 268 | 915 | 270 | 323 | 783 | 1,303 | |
Telecommunications | 1,441 | 1,545 | 1,356 | 1,520 | 1,365 | 2,985 | 2,899 | |
Travel and entertainment | 2,549 | 2,236 | 3,146 | 2,442 | 2,850 | 4,785 | 5,416 | |
Data processing and software | 29,467 | 30,028 | 32,922 | 29,127 | 27,289 | 59,494 | 58,395 | |
Professional, consulting and outsourcing | 3,534 | 3,935 | 5,194 | 5,017 | 5,371 | 7,469 | 9,681 | |
Amortization of intangibles | 3,999 | 4,066 | 4,405 | 4,436 | 6,081 | 8,065 | 10,547 | |
Legal | 758 | 3,682 | 13,724 | 3,316 | 1,765 | 4,440 | 3,052 | |
Merger expense | — | — | — | — | 122 | — | 5,192 | |
Postage and shipping | 1,622 | 2,205 | 1,907 | 2,292 | 1,941 | 3,827 | 4,244 | |
Other miscellaneous expense | 13,129 | 17,314 | 20,117 | 20,630 | 19,654 | 30,443 | 44,552 | |
Total noninterest expense | $ 256,697 | $ 263,207 | $ 329,367 | $ 274,442 | $ 267,466 | $ 519,904 | $ 552,113 | |
Table 12 Average Balance and Yields (Unaudited) | |||||||||||
Quarter Ended | |||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
(Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | ||
ASSETS | |||||||||||
Interest-earning assets: | |||||||||||
Loans and leases, excluding accretion | $ 537,179 | 6.56 % | $ 32,737,574 | $ 525,878 | 6.46 % | $ 491,473 | 6.17 % | ||||
Accretion income on acquired loans | 2,981 | 0.03 | 3,515 | 0.04 | 5,207 | 0.07 | |||||
Loans held for sale | 114,359 | 1,652 | 5.81 | 72,356 | 1,184 | 6.58 | 67,038 | 961 | 5.75 | ||
Investment securities | |||||||||||
Taxable | 7,954,865 | 62,852 | 3.18 | 8,187,342 | 63,405 | 3.11 | 10,272,425 | 53,531 | 2.09 | ||
Tax-exempt | 78,687 | 807 | 4.12 | 82,366 | 870 | 4.25 | 383,366 | 3,072 | 3.21 | ||
Total investment securities | 8,033,552 | 63,659 | 3.19 | 8,269,708 | 64,275 | 3.13 | 10,655,791 | 56,603 | 2.13 | ||
Other investments | 2,758,385 | 37,383 | 5.45 | 3,146,439 | 42,897 | 5.48 | 1,605,594 | 20,214 | 5.05 | ||
Total interest-earning assets | 43,851,822 | 642,854 | 5.90 % | 44,226,077 | 637,749 | 5.80 % | 44,229,519 | 574,458 | 5.21 % | ||
Other assets | 4,816,078 | 4,890,312 | 5,294,629 | ||||||||
Allowance for credit losses | 475,181 | 473,849 | 457,027 | ||||||||
Total assets | $ 48,642,540 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Interest-bearing liabilities: | |||||||||||
Interest bearing demand and money market | $ 146,279 | 3.13 % | $ 19,303,845 | $ 149,403 | 3.11 % | 111,938 | 2.49 % | ||||
Savings deposits | 2,652,019 | 3,743 | 0.57 | 2,696,452 | 3,801 | 0.57 | 3,088,174 | 3,915 | 0.51 | ||
Time deposits | 7,920,946 | 89,173 | 4.53 | 7,348,356 | 80,670 | 4.42 | 7,123,893 | 65,517 | 3.69 | ||
Total interest-bearing deposits | 29,343,058 | 239,195 | 3.28 | 29,348,653 | 233,874 | 3.21 | 28,209,685 | 181,370 | 2.58 | ||
Fed funds purchased, securities sold under | 65,821 | 732 | 4.47 | 209,348 | 2,528 | 4.86 | 774,170 | 7,658 | 3.97 | ||
Short-term FHLB borrowings | — | — | — | — | — | — | 2,388,139 | 31,219 | 5.24 | ||
Short-term BTFP borrowings | 3,500,000 | 41,536 | 4.77 | 3,500,000 | 42,104 | 4.84 | 1,153,846 | 14,815 | 5.15 | ||
Subordinated and long-term borrowings | 404,231 | 4,429 | 4.41 | 434,579 | 4,699 | 4.35 | 455,617 | 4,806 | 4.23 | ||
Total interest-bearing liabilities | 33,313,110 | 285,892 | 3.45 % | 33,492,580 | 283,205 | 3.40 % | 32,981,457 | 239,868 | 2.92 % | ||
Noninterest-bearing liabilities: | |||||||||||
Demand deposits | 8,757,029 | 9,072,619 | 10,725,108 | ||||||||
Other liabilities | 915,326 | 883,293 | 821,203 | ||||||||
Total liabilities | 42,985,465 | 43,448,492 | 44,527,768 | ||||||||
Shareholders' equity | 5,207,254 | 5,194,048 | 4,539,353 | ||||||||
Total liabilities and shareholders' equity | $ 48,642,540 | ||||||||||
Net interest income/net interest spread | 356,962 | 2.45 % | 354,544 | 2.40 % | 334,590 | 2.29 % | |||||
Net yield on earning assets/net interest margin | 3.27 % | 3.22 % | 3.03 % | ||||||||
Taxable equivalent adjustment: | |||||||||||
Loans and investment securities | (644) | (636) | (1,063) | ||||||||
Net interest revenue | $ 356,318 | $ 353,908 | $ 333,527 | ||||||||
Table 12 Average Balance and Yields Continued | |||||||
Year-To-Date | |||||||
June 30, 2024 | June 30, 2023 | ||||||
(Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | |
ASSETS | |||||||
Interest-earning assets: | |||||||
Loans and leases, excluding accretion | $ 32,841,550 | $ 1,063,056 | 6.51 % | $ 31,399,156 | $ 938,922 | 6.03 % | |
Accretion income on acquired loans | 6,496 | 0.04 | 15,235 | 0.10 | |||
Loans held for sale | 93,358 | 2,837 | 6.11 | 57,007 | 1,564 | 5.53 | |
Investment securities | |||||||
Taxable | 8,071,103 | 126,257 | 3.15 | 10,613,212 | 102,043 | 1.94 | |
Tax-exempt | 80,527 | 1,677 | 4.19 | 389,982 | 6,207 | 3.21 | |
Total investment securities | 8,151,630 | 127,934 | 3.16 | 11,003,194 | 108,250 | 1.98 | |
Other investments | 2,952,412 | 80,280 | 5.47 | 1,565,201 | 37,664 | 4.85 | |
Total interest-earning assets | 44,038,950 | 1,280,603 | 5.85 % | 44,024,558 | 1,101,635 | 5.05 % | |
Other assets | 4,853,195 | 5,286,046 | |||||
Allowance for credit losses | 474,515 | 449,797 | |||||
Total assets | $ 48,417,630 | $ 48,860,807 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Interest-bearing liabilities: | |||||||
Interest bearing demand and money market | $ 19,036,969 | 295,682 | 3.12 % | $ 18,500,687 | $ 207,282 | 2.26 % | |
Savings deposits | 2,674,236 | 7,544 | 0.57 | 3,224,945 | 6,929 | 0.43 | |
Time deposits | 7,634,651 | 169,842 | 4.47 | 5,733,863 | 89,467 | 3.15 | |
Total interest-bearing deposits | 29,345,856 | 473,068 | 3.24 | 27,459,495 | 303,678 | 2.23 | |
Fed funds purchased, securities sold under agreement to repurchase and other | 137,585 | 3,260 | 4.76 | 803,338 | 15,327 | 3.85 | |
Short-term FHLB borrowings | — | — | — | 2,802,438 | 68,232 | 4.91 | |
Short-term BTFP borrowings | 3,500,000 | 83,640 | 4.81 | 580,111 | 14,815 | 5.15 | |
Subordinated and long-term borrowings | 419,405 | 9,129 | 4.38 | 458,982 | 9,678 | 4.25 | |
Total interest-bearing liabilities | 33,402,846 | 569,097 | 3.43 % | 32,104,364 | 411,730 | 2.59 % | |
Noninterest-bearing liabilities: | |||||||
Demand deposits | 8,914,824 | 11,460,010 | |||||
Other liabilities | 899,309 | 828,131 | |||||
Total liabilities | 43,216,979 | 44,392,505 | |||||
Shareholders' equity | 5,200,651 | 4,468,302 | |||||
Total liabilities and shareholders' equity | $ 48,417,630 | $ 48,860,807 | |||||
Net interest income/net interest spread | 711,506 | 2.42 % | 689,905 | 2.46 % | |||
Net yield on earning assets/net interest margin | 3.25 % | 3.16 % | |||||
Taxable equivalent adjustment: | |||||||
Loans and investment securities | (1,280) | (2,114) | |||||
Net interest revenue | $ 710,226 | $ 687,791 | |||||
Table 13 Selected Additional Data (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
MORTGAGE SERVICING RIGHTS ("MSR"): | |||||
Fair value, beginning of period | $ 111,685 | $ 106,824 | $ 116,266 | $ 111,417 | $ 106,942 |
Originations of servicing assets | 3,687 | 2,736 | 2,636 | 4,065 | 1,990 |
Changes in fair value: | |||||
Due to payoffs/paydowns | (2,704) | (2,656) | (3,035) | (2,104) | (2,621) |
Due to update in valuation assumptions | 927 | 4,781 | (9,043) | 2,888 | 5,106 |
Fair value, end of period | $ 113,595 | $ 111,685 | $ 106,824 | $ 116,266 | $ 111,417 |
MORTGAGE BANKING REVENUE: | |||||
Origination | $ 3,976 | $ 3,165 | $ 1,040 | $ 2,031 | $ 3,495 |
Servicing | 5,899 | 5,951 | 5,926 | 5,915 | 5,900 |
Payoffs/Paydowns | (2,704) | (2,656) | (3,035) | (2,104) | (2,621) |
Total mortgage banking revenue excluding MSR | 7,171 | 6,460 | 3,931 | 5,842 | 6,774 |
Market value adjustment on MSR | 927 | 4,781 | (9,043) | 2,888 | 5,106 |
Market value adjustment on MSR Hedge | (1,925) | (4,798) | 3,975 | (3,046) | (3,524) |
Total mortgage banking revenue | $ 6,173 | $ 6,443 | $ (1,137) | $ 5,684 | $ 8,356 |
Mortgage loans serviced | $ 7,824,895 | $ 7,764,936 | $ 7,702,592 | $ 7,643,885 | $ 7,550,676 |
MSR/mortgage loans serviced | 1.45 % | 1.44 % | 1.39 % | 1.52 % | 1.48 % |
Quarter Ended | |||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 |
AVAILABLE FOR SALE SECURITIES, at fair value | |||||
$ — | $ 239,402 | $ 465,018 | $ 1,996 | $ 8,959 | |
Obligations of | 305,200 | 318,233 | 332,011 | 1,004,374 | 1,112,326 |
Mortgage-backed securities issued or guaranteed by | |||||
Residential pass-through: | |||||
Guaranteed by GNMA | 69,788 | 72,034 | 75,662 | 73,649 | 79,261 |
Issued by FNMA and FHLMC | 4,125,416 | 4,254,227 | 4,387,101 | 5,541,895 | 5,895,704 |
Other residential mortgage-back securities | 1,233,868 | 1,210,617 | 727,434 | 146,063 | 157,294 |
Commercial mortgage-backed securities | 1,673,823 | 1,694,967 | 1,742,837 | 2,271,680 | 2,357,047 |
Total MBS | 7,102,895 | 7,231,845 | 6,933,034 | 8,033,287 | 8,489,306 |
Obligations of states and political subdivisions | 133,155 | 134,643 | 137,624 | 392,252 | 433,316 |
Other domestic debt securities | 64,288 | 67,421 | 67,197 | 71,741 | 71,356 |
Foreign debt securities | 315,884 | 315,045 | 140,592 | 139,581 | 139,317 |
Total available for sale securities | $ 7,921,422 | $ 8,306,589 | $ 8,075,476 | $ 9,643,231 | $ 10,254,580 |
Table 14 |
Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions |
(Unaudited) |
Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted income from continuing operations, adjusted income from continuing operations available to common shareholders, pre-tax pre-provision net revenue from continuing operations, adjusted pre-tax pre-provision net revenue from continuing operations, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity from continuing operations, return on average tangible common equity, adjusted return on average tangible common equity from continuing operations, adjusted return on average tangible common equity, adjusted return on average assets from continuing operations, adjusted return on average assets, adjusted return on average common shareholders' equity from continuing operations, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio from continuing operations, and adjusted dividend payout ratio from continuing operations. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names. |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Adjusted Income from Continuing Operations Available to Common | ||||||||
Income (loss) from continuing operations | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | $ 107,262 | $ 254,450 | $ 180,269 | |
Plus: Merger expense | — | — | — | — | 122 | — | 5,192 | |
Incremental merger related expense | — | — | 7,500 | — | 1,671 | — | 10,631 | |
Gain on extinguishment of debt | (1,098) | (576) | (652) | — | (1,140) | (1,674) | (1,140) | |
Restructuring and other nonroutine expenses | 6,675 | 251 | 41,522 | 9,596 | 6,219 | 6,926 | 6,431 | |
Pension settlement expense | — | — | 11,226 | 600 | — | — | — | |
Less: Security (losses) gains, net | (4) | (9) | (384,524) | 64 | 69 | (12) | (51,192) | |
Gain on sale of businesses | 14,980 | — | — | — | — | 14,980 | — | |
Nonroutine (losses) gains, net | — | — | — | (6,653) | — | — | — | |
Tax adjustment | (2,209) | (74) | 105,275 | 3,944 | 1,599 | (2,283) | 16,992 | |
Adjusted income from continuing operations | 130,282 | 116,736 | 75,108 | 99,992 | 112,466 | 247,017 | 235,583 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 4,744 | 4,744 | |
Adjusted income from continuing operations available to common | $ 127,910 | $ 114,364 | $ 72,736 | $ 97,620 | $ 110,094 | $ 242,273 | $ 230,839 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Pre-Tax Pre-Provision Net Revenue from Continuing Operations | ||||||||
Income (loss) from continuing operations | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | $ 107,262 | $ 254,450 | $ 180,269 | |
Plus: Provision for credit losses | 22,000 | 22,000 | 38,000 | 17,000 | 15,000 | 44,000 | 25,000 | |
Income tax expense (benefit) | 40,807 | 35,509 | (80,485) | 24,355 | 30,463 | 76,316 | 51,536 | |
Pre-tax pre-provision net revenue from continuing operations | $ 200,279 | $ 174,487 | $ (306,222) | $ 128,507 | $ 152,725 | $ 374,766 | $ 256,805 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing | ||||||||
Income (loss) from continuing operations | $ 137,472 | $ 116,978 | $ (263,737) | $ 87,152 | $ 107,262 | $ 254,450 | $ 180,269 | |
Plus: Provision for credit losses | 22,000 | 22,000 | 38,000 | 17,000 | 15,000 | 44,000 | 25,000 | |
Merger expense | — | — | — | — | 122 | — | 5,192 | |
Incremental merger related expense | — | — | 7,500 | — | 1,671 | — | 10,631 | |
Gain on extinguishment of debt | (1,098) | (576) | (652) | — | (1,140) | (1,674) | (1,140) | |
Restructuring and other nonroutine expenses | 6,675 | 251 | 41,522 | 9,596 | 6,219 | 6,926 | 6,431 | |
Pension settlement expense | — | — | 11,226 | 600 | — | — | — | |
Income tax expense (benefit) | 40,807 | 35,509 | (80,485) | 24,355 | 30,463 | 76,316 | 51,536 | |
Less: Security (losses) gains, net | (4) | (9) | (384,524) | 64 | 69 | (12) | (51,192) | |
Gain on sale of businesses | 14,980 | — | — | — | — | 14,980 | — | |
Nonroutine (losses) gains, net | — | — | — | (6,653) | — | — | — | |
Adjusted pre-tax pre-provision net revenue from continuing | $ 190,880 | $ 174,171 | $ 137,898 | $ 145,292 | $ 159,528 | $ 365,050 | $ 329,111 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Total Adjusted Revenue | ||||||||
Net interest revenue | $ 356,318 | $ 353,908 | $ 334,605 | $ 328,960 | $ 333,527 | $ 710,226 | $ 687,791 | |
Total Adjusted Noninterest Revenue | ||||||||
Total noninterest revenue | $ 100,658 | $ 83,786 | $ (311,460) | $ 73,989 | $ 86,664 | $ 184,444 | $ 121,127 | |
Less: Security (losses) gains, net | (4) | (9) | (384,524) | 64 | 69 | (12) | (51,192) | |
Gain on sale of businesses | 14,980 | — | — | — | — | 14,980 | — | |
Nonroutine gains (losses), net | — | — | — | (6,653) | — | — | — | |
Total adjusted noninterest revenue | $ 85,682 | $ 83,795 | $ 73,064 | $ 80,578 | $ 86,595 | $ 169,476 | $ 172,319 | |
Total adjusted revenue | $ 442,000 | $ 437,703 | $ 407,669 | $ 409,538 | $ 420,122 | $ 879,702 | $ 860,110 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Total Adjusted Noninterest Expense | ||||||||
Total noninterest expense | $ 256,697 | $ 263,207 | $ 329,367 | $ 274,442 | $ 267,466 | $ 519,904 | $ 552,113 | |
Less: Merger expense | — | — | — | — | 122 | — | 5,192 | |
Incremental merger related expense | — | — | 7,500 | — | 1,671 | — | 10,631 | |
Gain on extinguishment of debt | (1,098) | (576) | (652) | — | (1,140) | (1,674) | (1,140) | |
Restructuring and other nonroutine expenses | 6,675 | 251 | 41,522 | 9,596 | 6,219 | 6,926 | 6,431 | |
Pension settlement expense | — | — | 11,226 | 600 | — | — | — | |
Total adjusted noninterest expense | $ 251,120 | $ 263,532 | $ 269,771 | $ 264,246 | $ 260,594 | $ 514,652 | $ 530,999 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
Total Tangible Assets, Excluding AOCI | ||||||||
Total assets | $ 47,984,078 | $ 48,313,863 | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | |||
Less: Goodwill | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,366,923 | 1,367,785 | |
Other identifiable intangible assets | 91,027 | 96,126 | 100,191 | 104,596 | 109,033 | 91,027 | 109,033 | |
Total tangible assets | 46,526,128 | 46,849,952 | 47,466,534 | 47,050,629 | 47,361,842 | 46,526,128 | 47,361,842 | |
Less: AOCI | (782,462) | (791,333) | (761,829) | (1,309,921) | (1,163,075) | (782,462) | (1,163,075) | |
Total tangible assets, excluding AOCI | $ 47,308,590 | $ 47,641,285 | $ 48,228,363 | $ 48,360,550 | $ 48,524,917 | |||
Quarter Ended | Year-to-date | |||||||
(Dollars in thousands, except per share data) | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Jun 2024 | Jun 2023 | |
PERIOD END BALANCES: | ||||||||
Total Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | ||||||||
Less: AOCI | (782,462) | (791,333) | (761,829) | (1,309,921) | (1,163,075) | (782,462) | (1,163,075) | |
Total shareholders' equity, excluding AOCI | ||||||||
Common Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | ||||||||
Less: preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Common shareholders' equity | 5,120,765 | 5,022,939 | 5,000,850 | 4,228,264 | 4,318,857 | 5,120,765 | 4,318,857 | |
Less: AOCI | (782,462) | (791,333) | (761,829) | (1,309,921) | (1,163,075) | (782,462) | (1,163,075) | |
Common shareholders' equity, excluding AOCI | ||||||||
Total Tangible Common Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | ||||||||
Less: Goodwill | 1,366,923 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,366,923 | 1,367,785 | |
Other identifiable intangible assets | 91,027 | 96,126 | 100,191 | 104,596 | 109,033 | 91,027 | 109,033 | |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Total tangible common shareholders' equity | 3,662,815 | 3,559,028 | 3,532,874 | 2,755,883 | 2,842,039 | 3,662,815 | 2,842,039 | |
Less: AOCI | (782,462) | (791,333) | (761,829) | (1,309,921) | (1,163,075) | (782,462) | (1,163,075) | |
Total tangible common shareholders' equity, excluding AOCI | ||||||||
AVERAGE BALANCES: | ||||||||
Total Tangible Common Shareholders' Equity | ||||||||
Total shareholders' equity | ||||||||
Less: Goodwill | 1,367,358 | 1,367,785 | 1,367,916 | 1,367,785 | 1,367,785 | 1,367,572 | 1,367,785 | |
Other identifiable intangible assets | 93,743 | 98,350 | 102,765 | 107,032 | 113,094 | 96,047 | 115,294 | |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Total tangible common shareholders' equity | ||||||||
Total average assets | ||||||||
Total shares of common stock outstanding | 182,430,427 | 182,681,325 | 182,871,775 | 182,611,075 | 182,626,229 | 182,430,427 | 182,626,229 | |
Average shares outstanding-diluted | 185,260,963 | 185,574,130 | 182,688,190 | 184,645,004 | 183,631,570 | 185,417,547 | 183,770,759 | |
Tangible common shareholders' equity to tangible assets (1) | 7.87 % | 7.60 % | 7.44 % | 5.86 % | 6.00 % | 7.87 % | 6.00 % | |
Tangible common shareholders' equity, excluding AOCI, to tangible | 9.40 | 9.13 | 8.90 | 8.41 | 8.25 | 9.40 | 8.25 | |
Return on average tangible common equity from continuing | 15.18 | 12.94 | (36.79) | 11.75 | 14.55 | 14.07 | 12.56 | |
Return on average tangible common equity (4) | 15.18 | 12.94 | 35.49 | 12.50 | 15.49 | 14.07 | 13.30 | |
Adjusted return on average tangible common equity from continuing | 14.37 | 12.92 | 10.06 | 13.53 | 15.27 | 13.65 | 16.52 | |
Adjusted return on average assets from continuing operations (6) | 1.09 | 0.97 | 0.62 | 0.82 | 0.92 | 1.03 | 0.97 | |
Adjusted return on average common shareholders' equity from | 10.21 | 9.15 | 6.65 | 8.93 | 10.10 | 9.68 | 10.82 | |
Pre-tax pre-provision net revenue from continuing operations to total | 1.67 | 1.44 | (2.51) | 1.05 | 1.25 | 1.56 | 1.06 | |
Adjusted pre-tax pre-provision net revenue from continuing | 1.59 | 1.44 | 1.13 | 1.18 | 1.30 | 1.52 | 1.36 | |
Tangible book value per common share (10) | $ 20.08 | $ 19.48 | $ 19.32 | $ 15.09 | $ 15.56 | $ 20.08 | $ 15.56 | |
Tangible book value per common share, excluding AOCI (11) | 24.37 | 23.81 | 23.48 | 22.26 | 21.93 | 24.37 | 21.93 | |
Adjusted earnings from continuing operations per common share (12) | $ 0.69 | $ 0.62 | $ 0.40 | $ 0.53 | $ 0.60 | $ 1.31 | $ 1.26 | |
Adjusted dividend payout ratio from continuing operations (13) | 36.23 % | 40.32 % | 58.75 % | 44.34 % | 39.17 % | 38.17 % | 37.30 % | |
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
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