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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Cadence Bank | NYSE:CADE | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.91 | 2.40% | 38.88 | 38.98 | 37.995 | 38.08 | 1,205,258 | 01:00:00 |
From Nov 2023 to Nov 2024
HOUSTON and TUPELO, Miss., Jan. 29, 2024 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter and year ended December 31, 2023. 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 results are presented as a single line item below income from continuing operations in the accompanying tables for all periods presented. All adjusted financial results discussed herein are adjusted results from continuing operations.
Annual highlights for 2023 included:
Highlights for the fourth quarter of 2023 included:
"Our Company made a significant amount of progress during 2023, particularly during the fourth quarter," remarked Dan Rollins, Chairman and Chief Executive Officer of the Cadence Bank. "We are pleased to have completed the sale of Cadence Insurance to Gallagher at the end of November, which generated an after-tax gain of approximately $520 million. This transaction allowed us to unlock a tremendous amount of value for our shareholders, strengthen our capital position, and better position our Company for future success. We were able to utilize a portion of this capital during the fourth quarter to reposition a meaningful portion of our securities portfolio. We sold $3.1 billion in securities yielding approximately 1.26% at an after-tax loss of approximately $294 million. We are currently in the process of redeploying those proceeds into higher yielding assets."
Rollins continued, "While loan balances were flat for the fourth quarter, we produced net loan growth of $2.1 billion, or 7.1%, for the full year, and deposit balances were relatively stable both for the fourth quarter and full year. Improvement in earning asset yields and a slowing in pressure on funding costs, along with our reduction in brokered deposits and initial securities repositioning, allowed us to improve our net interest margin in the fourth quarter. We are optimistic this trend will continue into 2024. Finally, while both our net charge-offs and provision for credit losses increased in the latter part of 2023, our credit monitoring processes are assisting in the timely identification of potential issues, and our criticized and classified asset totals have remained stable since the first quarter of 2023."
Key Transactions
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Gallagher for approximately $904 million, subject to customary purchase price adjustments. The Transaction resulted in net capital creation of approximately $620 million, including a net gain on sale of approximately $520 million. The gain along with Cadence Insurance's historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations. The purchase price and related gain remain subject to additional adjustments in accordance with the purchase agreement.
During December 2023, the Company executed a securities portfolio restructuring whereby available-for-sale securities totaling approximately $3.1 billion in par value were sold for an after-tax loss of $294.1 million, which is included in results from continuing operations. In aggregate, these securities had a book yield of approximately 1.26% and an estimated duration of just over 4 years. Of the sales proceeds, $1.0 billion has been reinvested in securities as of December 31, 2023. These securities have an aggregate book yield of approximately 5.57% and an estimated duration of approximately 2 years. Additionally, $645 million has been used to pay down brokered deposits at a rate of 5.47% and the remainder was held in cash earning 5.40% at December 31, 2023 pending reinvestment.
Earnings Summary
For the year ended December 31, 2023, the Company reported net income available to common shareholders of $532.8 million, or $2.92 per diluted common share, compared with $453.7 million, or $2.46 per diluted common share, for the year ended December 31, 2022. The Company reported adjusted net income from continuing operations available to common shareholders(1) of $401.2 million, or $2.20 per diluted common share, for the year ended December 31, 2023 compared with $526.1 million, or $2.85 per diluted common share, for the year ended December 31, 2022. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $612.3 million, or 1.26% of average assets, for the year ended December 31, 2023 compared with $699.6 million, or 1.47% of average assets, for the year ended December 31, 2022.
For the fourth quarter of 2023, the Company reported net income available to common shareholders of $256.7 million, or $1.41 per diluted common share, compared with $95.6 million, or $0.52 per diluted common share, for the fourth quarter of 2022 and $90.2 million, or $0.49 per diluted common share, for the third quarter of 2023. Adjusted net income available to common shareholders from continuing operations(1) was $72.7 million, or $0.40 per diluted common share, for the fourth quarter of 2023, compared with $141.4 million, or $0.77 per diluted common share, for the fourth quarter of 2022 and $97.6 million, or $0.53 per diluted common share, for the third quarter of 2023. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $137.9 million, or 1.13% of average assets on an annualized basis, for the fourth quarter of 2023 compared to $192.5 million, or 1.60% of average assets on an annualized basis, for the fourth quarter of 2022 and $145.3 million, or 1.18% of average assets on an annualized basis, for the third quarter of 2023.
Net Interest Revenue
Net interest revenue was $334.6 million for the fourth quarter of 2023, compared to $359.4 million for the fourth quarter of 2022 and $329.0 million for the third quarter of 2023. The net interest margin (fully taxable equivalent) was 3.04% for the fourth quarter of 2023, compared with 3.33% for the fourth quarter of 2022 and 2.98% for the third quarter of 2023.
Net interest revenue increased $5.6 million, or 1.7%, compared to the third quarter of 2023 as earning asset yields continue to increase, partially as a result of the securities portfolio repositioning, lower brokered deposits and the slower pace of deposit cost increases. Purchase accounting accretion revenue was $4.1 million and $6.6 million for the fourth quarter of 2023 and the third quarter of 2023, respectively, adding approximately 4 basis points to the net interest margin for the fourth quarter of 2023 and 6 basis points for the third quarter of 2023.
Yield on net loans, loans held for sale, and leases excluding accretion, was 6.43% for the fourth quarter of 2023, up 12 basis points from 6.31% for the third quarter of 2023, while yield on total interest earning assets was 5.59% for the fourth quarter of 2023, up 21 basis points from 5.38% for the third quarter of 2023. Earning asset yields continue to benefit from fixed and variable rate credits as well as securities cash flows repricing at higher yields. Approximately 28% of our total loans are floating (reprice within 30 days), and another 20% reprice within 12 months. Our total loan beta, excluding accretion, is 46% cycle-to-date.
The average cost of total deposits increased to 2.32% for the fourth quarter of 2023, up 18 basis points during the quarter. The fourth quarter increase in total deposit costs continued to slow compared to the third quarter increase of 27 basis points and over 50 basis points for each of the first two quarters of 2023. Total interest-bearing liabilities cost increased to 3.34% from 3.17% during the fourth quarter of 2023. Our total deposit beta is 41% cycle-to-date.
Balance Sheet Activity
Loans and leases, net of unearned income, were $32.5 billion at December 31, 2023, which is flat compared to September 30, 2023. Total investment securities of $8.1 billion at December 31, 2023 decreased $1.6 billion during the fourth quarter as a portion of the proceeds from the securities portfolio restructuring was temporarily held in cash at December 31, 2023 as the Company continues to reinvest the proceeds.
Total deposits increased $161.3 million to $38.5 billion as of December 31, 2023. Total brokered deposits declined $463.0 million from $1.2 billion at the end of the third quarter of 2023 to $0.7 billion at December 31, 2023, or 1.9% of total deposits. Excluding the decline in brokered deposits, total deposits increased $624.3 million, or 6.5% annualized, during the fourth quarter of 2023. Approximately half of this growth represents seasonal public funds increases while the other half represents core customer deposit growth, primarily in our community bank.
The December 31, 2023 loan to deposit ratio was 84.4% and securities to total assets was 16.5%, reflecting continued strong liquidity. Noninterest bearing deposits represented 24.0% of total deposits at the end of the fourth quarter of 2023, declining from 25.2% at September 30, 2023, reflective of a slower mix shift than during the early part of year. The Company's deposit base continues to be very granular, with average transaction account balances of approximately $23,000 for consumer accounts and $135,000 for commercial accounts at December 31, 2023. Additionally, approximately 98% of the Company's deposit accounts have balances less than $250,000, and approximately 71% of our deposit balances were FDIC insured or collateralized at quarter-end.
Short-term borrowings were stable at $3.5 billion at December 31, 2023 while cash, due from balances and deposits at the Federal Reserve increased $2.2 billion to $4.2 billion at December 31, 2023, primarily as a result of cash held from the securities portfolio repositioning pending reinvestment. Additionally, the Company has refinanced the $3.5 billion bank term funding program borrowing, lowering the cost from 5.15% to 4.84% at year-end.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Total non-performing assets as a percent of total assets increased to 0.45% at December 31, 2023 compared to 0.23% at December 31, 2022 and 0.32% at September 30, 2023. Total non-performing loans and leases as a percent of loans and leases, net were 0.67% at December 31, 2023, compared to 0.35% at December 31, 2022 and 0.46% at September 30, 2023. The increase in nonaccrual loans was primarily due to the negative migration of previously identified criticized loans in the Commercial & Industrial non-real estate segment of the portfolio. While these credits drove the increase in nonaccrual loans, over 50% of nonaccrual loans (by balance) at December 31, 2023 are granular, secured residential mortgages and SBA guaranteed loans. Other real estate owned and other repossessed assets was $6.2 million at December 31, 2023 compared to the December 31, 2022 balance of $6.7 million and the September 30, 2023 balance of $2.9 million. For the fourth quarter of 2023, criticized loans declined by $37.7 million to $844.7 million or 2.60% of loans, down from 2.71% at September 30, 2023, while classified loans were stable at 2.09% compared to 2.10% at September 30, 2023.
Net charge-offs for the fourth quarter of 2023 were $23.8 million, or 0.29% of average net loans and leases on an annualized basis, compared with net recoveries of $5.0 million for the fourth quarter of 2022 and net charge-offs of $34.2 million for the third quarter of 2023. Net charge-offs in the fourth quarter of 2023, while lower than the prior quarter, were driven primarily by a select few credits across different industries and geographies that were identified as criticized in prior quarters. The provision for credit losses for the fourth quarter of 2023 was $38.0 million, compared with $6.0 million for the fourth quarter of 2022 and $17.0 million for the third quarter of 2023. The allowance for credit losses of $468.0 million at December 31, 2023 represented 1.44% as a percent of total loans and leases, increased from the September 30, 2023 coverage of 1.37%. The increase in the quarter's provision includes incremental impairments on previously identified criticized credits.
Noninterest Revenue
Noninterest revenue was negative $311.5 million for the fourth quarter of 2023, or $73.1 million excluding the loss on securities sales from our repositioning transaction. This revenue is compared with $80.2 million for the fourth quarter of 2022 and $74.0 million for the third quarter of 2023. Adjusted noninterest revenue(1) for the fourth quarter of 2023 was $73.1 million, compared with $80.8 million for the fourth quarter of 2022 and $80.6 million for the third quarter of 2023. Adjusted noninterest revenue(1) for the fourth quarter of 2023 excludes the securities portfolio restructuring loss of $384.5 million while third quarter 2023 adjusted noninterest revenue(1) excludes $6.7 million of facility and signage write-downs associated with the 35 branch closures effected in the third quarter of 2023. The fourth quarter of 2023 decline in adjusted noninterest revenue was impacted by an $8 million adjustment to deposit service charges, representing $0.03 per diluted share, and a $4.9 million negative variance in the mortgage servicing rights valuation, representing $0.02 per diluted share, partially offset by increases in several other revenue items including card fees, wealth management income, bank-owned life insurance, and other miscellaneous income.
Credit card, debit card and merchant fee revenue was $12.9 million for the fourth quarter of 2023, compared with $15.8 million for the fourth quarter of 2022 and $12.4 million for the third quarter of 2023. Deposit service charge revenue was $11.2 million for the fourth quarter of 2023 compared with $16.9 million for the fourth quarter of 2022 and $16.9 million for the third quarter of 2023. The decline in deposit service charge revenue during the fourth quarter was the result of an adjustment of approximately $8 million, resulting from deposit service charge changes. These changes are expected to result in a reduction in revenue of approximately $3 million per year going forward.
Other noninterest revenue was $27.6 million for the fourth quarter of 2023, compared with $26.4 million for the fourth quarter of 2022 and $17.9 million for the third quarter of 2023. Other noninterest revenue for the third quarter of 2023 included $6.7 million of facility and signage write-downs associated with the 35 branch closures effected in the third quarter of 2023.
Mortgage production and servicing revenue totaled $3.9 million for the fourth quarter of 2023, compared with $5.4 million for the fourth quarter of 2022 and $5.8 million for the third quarter of 2023. The net mortgage servicing rights valuation adjustment was a negative $5.1 million for the fourth quarter of 2023, compared with a negative $2.8 million for the fourth quarter of 2022 and a negative $0.2 million for the third quarter of 2023 with the variances due to continued movement in interest rates. Mortgage origination volume for the fourth quarter of 2023 was $434.7 million, compared with $554.5 million for the fourth quarter of 2022 and $615.2 million for the third quarter of 2023. The decline compared to the third quarter of 2023 reflects routine selling seasonality while the year-over-year decline was primarily the result of a shift from on-balance sheet production.
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 was $329.4 million, compared with $308.6 million for the fourth quarter of 2022 and $274.4 million for the third quarter of 2023. Adjusted noninterest expense(1) for the fourth quarter of 2023 was $269.8 million, compared with $247.6 million for the fourth quarter of 2022 and $264.2 million for the third quarter of 2023. Adjusted noninterest expense(1) for the fourth quarter of 2023 excludes a charge of $36.2 million related to the FDIC special assessment, a charge of $11.2 million to reflect the pension settlement accounting impact of early retirements during 2023, incremental merger related expense of $7.5 million, and a $5.0 million contribution to the Company's foundation. The Company utilized a portion of the proceeds of the insurance transaction to fund this contribution, which will be utilized to positively impact the communities we serve while also reducing future expenses of the Company. The adjusted efficiency ratio(1) was 66.0% for the fourth quarter of 2023 compared to 64.4% for the third quarter of 2023.
The $5.5 million, or 2.1%, increase in adjusted noninterest expense(1) compared to the linked quarter was driven primarily by increases in public relations, legal, and data processing and software expense, which offset improvement in salaries and employee benefits expense. Salaries and employee benefits expense declined $5.7 million on an adjusted basis. Excluding the impact of the Cadence Insurance sale, employee count declined by 125 FTE during the fourth quarter of 2023, and over the last 12 months has declined by 537 FTE. Excluding the foundation contribution, public relations expense increased $1.9 million in the fourth quarter partially from seasonality as well as $0.9 million in tax credit investments with an equal reduction of tax expense. Legal expense increased $2.6 million on an adjusted basis in the fourth quarter, primarily as a result of an accrual for the settlement of certain legal matters. Finally, data processing and software expense increased $3.8 million related to certain expansion and development efforts, vendor increases, ongoing technology infrastructure support, and timing.
Capital Management
Total shareholders' equity was $5.2 billion at December 31, 2023 compared with $4.3 billion at December 31, 2022 and $4.4 billion at September 30, 2023. Estimated regulatory capital ratios at December 31, 2023 included Common Equity Tier 1 capital of 11.6%, Tier 1 capital of 12.1%, Total risk-based capital of 14.3%, and Tier 1 leverage capital of 9.3%. During the fourth quarter of 2023, the Company did not repurchase any shares of its common stock. During December 2023, the board approved a share repurchase authorization for 10 million shares of Company common stock for the 2024 year. Outstanding common shares were 182.9 million as of December 31, 2023.
Summary
Rollins concluded, "I'm extremely proud of the accomplishments of our team during 2023. The opportunity to grow our loan portfolio combined with our bankers' success in protecting our core deposit relationships has positioned our balance sheet favorably as we enter 2024. Additionally, we have made significant progress in our efforts to improve efficiency, notably through our branch consolidation efforts and workforce reduction initiatives. Finally, we expect the insurance transaction, along with our securities portfolio restructuring, will accelerate our path to improved operating performance. We look forward to seeing the fruits of all these efforts in the new year and beyond."
Conference Call and Webcast
The Company will conduct a conference call to discuss its fourth quarter and annual 2023 financial results on January 30, 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.
(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 23 of this news release. |
(2) | See Table 14 for detail on non-routine income and expenses. |
About Cadence Bank
Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the South and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.
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 as well as the impact of the Cadence Insurance sale (the "Cadence Insurance Transaction") on the Company's financial condition and future net income and earnings per share, the amount of net after-tax proceeds expected to be received by the Company from the Cadence Insurance Transaction, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies (including the Cadence Insurance Transaction), including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
In addition, the Company faces risks from the failure to achieve the expected impact on the Company's financial condition; and risks associated with unexpected costs, liabilities or delays relating to the Cadence Insurance Transaction.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Table 1 Selected Financial Data (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Earnings Summary: | ||||||||
Interest revenue | $ 615,187 | $ 595,459 | $ 573,395 | $ 526,126 | $ 473,546 | $ 2,310,167 | $ 1,560,581 | |
Interest expense | 280,582 | 266,499 | 239,868 | 171,862 | 114,188 | 958,811 | 209,290 | |
Net interest revenue | 334,605 | 328,960 | 333,527 | 354,264 | 359,358 | 1,351,356 | 1,351,291 | |
Provision for credit losses | 38,000 | 17,000 | 15,000 | 10,000 | 6,000 | 80,000 | 7,000 | |
Net interest revenue, after provision for credit losses | 296,605 | 311,960 | 318,527 | 344,264 | 353,358 | 1,271,356 | 1,344,291 | |
Noninterest revenue | (311,460) | 73,989 | 86,664 | 34,463 | 80,196 | (116,343) | 342,485 | |
Noninterest expense | 329,367 | 274,442 | 267,466 | 284,647 | 308,638 | 1,155,923 | 1,109,754 | |
(Loss) income from continuing operations before income taxes | (344,222) | 111,507 | 137,725 | 94,080 | 124,916 | (910) | 577,022 | |
Income tax (benefit) expense | (80,485) | 24,355 | 30,463 | 21,073 | 28,196 | (4,594) | 129,705 | |
(Loss) income from continuing operations | (263,737) | 87,152 | 107,262 | 73,007 | 96,720 | 3,684 | 447,317 | |
Income from discontinued operations, net of taxes | 522,801 | 5,431 | 6,766 | 3,622 | 1,214 | 538,620 | 15,920 | |
Net income | 259,064 | 92,583 | 114,028 | 76,629 | 97,934 | 542,304 | 463,237 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 9,488 | 9,488 | |
Net income available to common shareholders | $ 256,692 | $ 90,211 | $ 111,656 | $ 74,257 | $ 95,562 | $ 532,816 | $ 453,749 | |
Balance Sheet - Period End Balances | ||||||||
Total assets | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | $ 51,693,096 | $ 48,653,414 | $ 48,934,510 | $ 48,653,414 | |
Total earning assets | 44,192,887 | 43,727,058 | 44,010,411 | 46,806,214 | 43,720,151 | 44,192,887 | 43,720,151 | |
Available-for-sale securities | 8,075,476 | 9,643,231 | 10,254,580 | 10,877,879 | 11,944,096 | 8,075,476 | 11,944,096 | |
Loans and leases, net of unearned income | 32,497,022 | 32,520,593 | 32,556,708 | 31,282,594 | 30,349,277 | 32,497,022 | 30,349,277 | |
Allowance for credit losses (ACL) | 468,034 | 446,859 | 466,013 | 453,727 | 440,347 | 468,034 | 440,347 | |
Net book value of acquired loans | 6,353,344 | 6,895,487 | 7,357,174 | 7,942,980 | 8,754,526 | 6,353,344 | 8,754,526 | |
Unamortized net discount on acquired loans | 26,928 | 30,761 | 37,000 | 41,748 | 58,162 | 26,928 | 58,162 | |
Total deposits | 38,497,137 | 38,335,878 | 38,701,669 | 39,406,454 | 38,956,614 | 38,497,137 | 38,956,614 | |
Total deposits and repurchase agreements | 38,948,653 | 39,198,467 | 39,492,427 | 40,177,789 | 39,665,350 | 38,948,653 | 39,665,350 | |
Other short-term borrowings | 3,500,000 | 3,500,223 | 3,500,226 | 5,700,228 | 3,300,231 | 3,500,000 | 3,300,231 | |
Subordinated and long-term debt | 438,460 | 449,323 | 449,733 | 462,144 | 462,554 | 438,460 | 462,554 | |
Total shareholders' equity | 5,167,843 | 4,395,257 | 4,485,850 | 4,490,417 | 4,311,374 | 5,167,843 | 4,311,374 | |
Total shareholders' equity, excluding AOCI (1) | 5,929,672 | 5,705,178 | 5,648,925 | 5,572,303 | 5,533,912 | 5,929,672 | 5,533,912 | |
Common shareholders' equity | 5,000,850 | 4,228,264 | 4,318,857 | 4,323,424 | 4,144,381 | 5,000,850 | 4,144,381 | |
Common shareholders' equity, excluding AOCI (1) | $ 5,762,679 | $ 5,538,185 | $ 5,481,932 | $ 5,405,310 | $ 5,366,919 | $ 5,762,679 | $ 5,366,919 | |
Balance Sheet - Average Balances | ||||||||
Total assets | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 | $ 48,652,201 | $ 47,790,494 | $ 48,703,953 | $ 47,533,157 | |
Total earning assets | 43,754,664 | 44,003,639 | 44,229,519 | 43,817,318 | 42,973,660 | 43,951,257 | 43,060,970 | |
Available-for-sale securities | 9,300,714 | 10,004,441 | 10,655,791 | 11,354,457 | 12,156,803 | 10,322,335 | 13,596,372 | |
Loans and leases, net of unearned income | 32,529,030 | 32,311,572 | 31,901,096 | 30,891,640 | 29,812,924 | 31,913,925 | 28,418,658 | |
Total deposits | 38,215,379 | 38,465,975 | 38,934,793 | 38,904,048 | 38,372,354 | 38,628,453 | 39,477,906 | |
Total deposits and repurchase agreements | 38,968,397 | 39,293,030 | 39,708,963 | 39,632,023 | 39,033,328 | 39,399,230 | 40,146,852 | |
Other short-term borrowings | 3,503,320 | 3,510,942 | 3,541,985 | 3,326,196 | 3,251,947 | 3,471,207 | 1,580,409 | |
Subordinated and long-term debt | 443,251 | 449,568 | 455,617 | 462,385 | 462,927 | 452,645 | 465,004 | |
Total shareholders' equity | 4,507,343 | 4,505,162 | 4,539,353 | 4,396,461 | 4,215,585 | 4,487,433 | 4,574,403 | |
Common shareholders' equity | $ 4,340,350 | $ 4,338,169 | $ 4,372,360 | $ 4,229,468 | $ 4,048,592 | $ 4,320,440 | $ 4,407,410 | |
Nonperforming Assets: | ||||||||
Nonaccrual loans and leases | $ 216,141 | $ 150,038 | $ 157,243 | $ 160,615 | $ 98,745 | $ 216,141 | $ 98,745 | |
Restructured loans and leases, still accruing (2) | — | — | — | — | 8,598 | — | 8,598 | |
Non-performing loans and leases (NPL) (3) | 216,141 | 150,038 | 157,243 | 160,615 | 107,343 | 216,141 | 107,343 | |
Other real estate owned and other assets | 6,246 | 2,927 | 2,857 | 5,327 | 6,725 | 6,246 | 6,725 | |
Non-performing assets (NPA) | $ 222,387 | $ 152,965 | $ 160,100 | $ 165,942 | $ 114,068 | $ 222,387 | $ 114,068 | |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 - 28. |
(2) | Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023. |
(3) | At December 31, 2023, $49.6 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. |
Table 2 Selected Financial Ratios | ||||||||
Quarter Ended | Year-to-date | |||||||
Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | ||
Financial Ratios and Other Data: | ||||||||
Return on average assets from continuing operations (2) | (2.16) % | 0.71 % | 0.88 % | 0.61 % | 0.80 % | 0.01 % | 0.94 % | |
Return on average assets (2) | 2.12 % | 0.75 % | 0.93 % | 0.64 % | 0.81 % | 1.11 % | 0.97 % | |
Adjusted return on average assets from continuing operations (1)(2) | 0.62 | 0.82 | 0.92 | 1.03 | 1.19 | 0.84 | 1.13 | |
Return on average common shareholders' equity from continuing operations (2) | (24.32) | 7.75 | 9.62 | 6.77 | 9.25 | (0.13) | 9.93 | |
Return on average common shareholders' equity (2) | 23.46 | 8.25 | 10.24 | 7.12 | 9.36 | 12.33 | 10.30 | |
Adjusted return on average common shareholders' equity from continuing operations (1)(2) | 6.65 | 8.93 | 10.10 | 11.58 | 13.85 | 9.29 | 11.94 | |
Return on average tangible common equity from continuing operations (1)(2) | (36.79) | 11.75 | 14.55 | 10.44 | 14.64 | (0.20) | 15.05 | |
Return on average tangible common equity (1)(2) | 35.49 | 12.50 | 15.49 | 10.97 | 14.83 | 18.74 | 15.59 | |
Adjusted return on average tangible common equity from continuing operations (1)(2) | 10.06 | 13.53 | 15.27 | 17.84 | 21.94 | 14.11 | 18.08 | |
Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2) | (2.51) | 1.05 | 1.25 | 0.87 | 1.09 | 0.16 | 1.23 | |
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2) | 1.13 | 1.18 | 1.30 | 1.41 | 1.60 | 1.26 | 1.47 | |
Net interest margin-fully taxable equivalent | 3.04 | 2.98 | 3.03 | 3.29 | 3.33 | 3.08 | 3.15 | |
Net interest rate spread-fully taxable equivalent | 2.25 | 2.21 | 2.29 | 2.65 | 2.84 | 2.33 | 2.90 | |
Efficiency ratio fully tax equivalent (1) | NM | 67.93 | 63.49 | 73.03 | 70.05 | 93.28 | 66.97 | |
Adjusted efficiency ratio fully tax equivalent (1) | 66.01 | 64.35 | 61.87 | 61.31 | 56.13 | 63.34 | 58.56 | |
Loan/deposit ratio | 84.41 % | 84.83 % | 84.12 % | 79.38 % | 77.91 % | 84.41 % | 77.91 % | |
Full time equivalent employees | 5,333 | 6,160 | 6,479 | 6,567 | 6,572 | 5,333 | 6,572 | |
Credit Quality Ratios: | ||||||||
Net charge-offs (recoveries) to average loans and leases (2) | 0.29 % | 0.42 % | 0.16 % | 0.02 % | (0.07) % | 0.22 % | — % | |
Provision for credit losses to average loans and leases (2) | 0.46 | 0.21 | 0.19 | 0.13 | 0.08 | 0.25 | 0.02 | |
ACL to loans and leases, net | 1.44 | 1.37 | 1.43 | 1.45 | 1.45 | 1.44 | 1.45 | |
ACL to NPL | 216.54 | 297.83 | 296.36 | 282.49 | 410.22 | 216.54 | 410.22 | |
NPL to loans and leases, net | 0.67 | 0.46 | 0.48 | 0.51 | 0.35 | 0.67 | 0.35 | |
NPA to total assets | 0.45 | 0.32 | 0.33 | 0.32 | 0.23 | 0.45 | 0.23 | |
Equity Ratios: | ||||||||
Total shareholders' equity to total assets | 10.56 % | 9.06 % | 9.19 % | 8.69 % | 8.86 % | 10.56 % | 8.86 % | |
Total common shareholders' equity to total assets | 10.22 | 8.71 | 8.84 | 8.36 | 8.52 | 10.22 | 8.52 | |
Tangible common shareholders' equity to tangible assets (1) | 7.44 | 5.86 | 6.00 | 5.66 | 5.63 | 7.44 | 5.63 | |
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1) | 8.90 | 8.41 | 8.25 | 7.65 | 8.02 | 8.90 | 8.02 | |
Capital Adequacy (3): | ||||||||
Common Equity Tier 1 capital | 11.6 % | 10.3 % | 10.1 % | 10.1 % | 10.2 % | 11.6 % | 10.2 % | |
Tier 1 capital | 12.1 | 10.8 | 10.5 | 10.6 | 10.7 | 12.1 | 10.7 | |
Total capital | 14.3 | 12.9 | 12.7 | 12.8 | 12.8 | 14.3 | 12.8 | |
Tier 1 leverage capital | 9.3 | 8.6 | 8.5 | 8.4 | 8.4 | 9.3 | 8.4 | |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 - 28. |
(2) | Annualized. |
(3) | Current quarter regulatory capital ratios are estimated. |
NM - Not meaningful | |
Table 3 Selected Financial Information | ||||||||
Quarter Ended | Year-to-date | |||||||
Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | ||
Common Share Data: | ||||||||
Diluted (losses) earnings per share from continuing operations | $ (1.46) | $ 0.46 | $ 0.57 | $ 0.38 | $ 0.51 | $ (0.03) | $ 2.37 | |
Adjusted earnings per share from continuing operations (1) | 0.40 | 0.53 | 0.60 | 0.66 | 0.77 | 2.20 | 2.85 | |
Diluted earnings per share | 1.41 | 0.49 | 0.61 | 0.40 | 0.52 | 2.92 | 2.46 | |
Cash dividends per share | 0.235 | 0.235 | 0.235 | 0.235 | 0.22 | 0.940 | 0.88 | |
Book value per share | 27.35 | 23.15 | 23.65 | 23.67 | 22.72 | 27.35 | 22.72 | |
Tangible book value per share (1) | 19.32 | 15.09 | 15.56 | 15.55 | 14.56 | 19.32 | 14.56 | |
Market value per share (last) | 29.59 | 21.22 | 19.88 | 20.76 | 24.66 | 29.59 | 24.66 | |
Market value per share (high) | 31.45 | 25.87 | 21.73 | 28.18 | 29.41 | 31.45 | 34.24 | |
Market value per share (low) | 19.67 | 19.00 | 16.95 | 19.24 | 22.43 | 16.95 | 22.04 | |
Market value per share (average) | 24.40 | 22.56 | 19.73 | 24.88 | 26.84 | 22.90 | 27.35 | |
Dividend payout ratio from continuing operations | (16.13) % | 51.09 % | 41.23 % | 61.84 % | 43.14 % | NM | 37.08 % | |
Adjusted dividend payout ratio from continuing operations (1) | 58.75 % | 44.34 % | 39.17 % | 35.61 % | 28.57 % | 42.73 % | 30.88 % | |
Total shares outstanding | 182,871,775 | 182,611,075 | 182,626,229 | 182,684,578 | 182,437,265 | 182,871,775 | 182,437,265 | |
Average shares outstanding - diluted | 182,688,190 | 184,645,004 | 183,631,570 | 183,908,798 | 183,762,008 | 182,608,713 | 184,498,472 | |
Yield/Rate: | ||||||||
(Taxable equivalent basis) | ||||||||
Loans, loans held for sale, and leases | 6.48 % | 6.39 % | 6.24 % | 6.00 % | 5.54 % | 6.28 % | 4.74 % | |
Loans, loans held for sale, and leases excluding net accretion on acquired loans and leases | 6.43 | 6.31 | 6.18 | 5.87 | 5.41 | 6.20 | 4.57 | |
Available-for-sale securities: | ||||||||
Taxable | 2.45 | 2.07 | 2.09 | 1.80 | 1.54 | 2.09 | 1.40 | |
Tax-exempt | 3.78 | 3.23 | 3.21 | 3.21 | 3.28 | 3.32 | 2.95 | |
Other investments | 5.41 | 5.36 | 5.05 | 4.64 | 3.69 | 5.13 | 1.77 | |
Total interest earning assets and revenue | 5.59 | 5.38 | 5.21 | 4.88 | 4.38 | 5.27 | 3.63 | |
Deposits | 2.32 | 2.14 | 1.87 | 1.28 | 0.76 | 1.90 | 0.35 | |
Interest bearing demand and money market | 3.02 | 2.79 | 2.49 | 2.03 | 1.34 | 2.58 | 0.59 | |
Savings | 0.56 | 0.56 | 0.51 | 0.36 | 0.31 | 0.49 | 0.15 | |
Time | 4.22 | 3.98 | 3.69 | 2.24 | 1.17 | 3.69 | 0.68 | |
Total interest bearing deposits | 3.10 | 2.88 | 2.58 | 1.86 | 1.17 | 2.62 | 0.54 | |
Fed funds purchased, securities sold under agreement to repurchase and other | 4.33 | 4.27 | 3.97 | 3.73 | 3.04 | 4.07 | 1.45 | |
Short-term FHLB borrowings | — | 3.54 | 5.24 | 4.66 | 3.84 | 4.91 | 2.78 | |
Short-term BTFP borrowings | 5.04 | 5.15 | 5.15 | — | — | 5.10 | — | |
Total interest bearing deposits and short-term borrowings | 3.33 | 3.16 | 2.90 | 2.20 | 1.50 | 2.91 | 0.68 | |
Long-term debt | 4.18 | 4.22 | 4.23 | 4.27 | 4.15 | 4.23 | 4.16 | |
Total interest bearing liabilities | 3.34 | 3.17 | 2.92 | 2.23 | 1.54 | 2.93 | 0.74 | |
Interest bearing liabilities to interest earning assets | 76.08 % | 75.74 % | 74.57 % | 71.24 % | 68.42 % | 74.43 % | 66.09 % | |
Net interest income tax equivalent adjustment (in thousands) | $ 987 | $ 1,081 | $ 1,063 | $ 1,051 | $ 1,071 | $ 4,184 | $ 4,212 | |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 - 28. |
NM - Not meaningful | |
Table 4 Consolidated Balance Sheets (Unaudited) | |||||
As of | |||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
ASSETS | |||||
Cash and due from banks | $ 798,177 | $ 594,787 | $ 722,625 | $ 660,431 | $ 756,906 |
Interest bearing deposits with other banks and Federal funds sold | 3,434,088 | 1,400,858 | 1,005,889 | 4,449,631 | 1,238,853 |
Available-for-sale securities, at fair value | 8,075,476 | 9,643,231 | 10,254,580 | 10,877,879 | 11,944,096 |
Loans and leases, net of unearned income | 32,497,022 | 32,520,593 | 32,556,708 | 31,282,594 | 30,349,277 |
Allowance for credit losses | 468,034 | 446,859 | 466,013 | 453,727 | 440,347 |
Net loans and leases | 32,028,988 | 32,073,734 | 32,090,695 | 30,828,867 | 29,908,930 |
Loans held for sale, at fair value | 186,301 | 162,376 | 193,234 | 196,110 | 187,925 |
Premises and equipment, net | 802,133 | 789,698 | 804,732 | 801,463 | 792,232 |
Goodwill | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 |
Other intangible assets, net | 100,191 | 104,596 | 109,033 | 115,113 | 119,579 |
Bank-owned life insurance | 642,840 | 639,073 | 634,985 | 631,174 | 630,046 |
Other assets | 1,498,531 | 1,590,769 | 1,486,070 | 1,609,232 | 1,540,239 |
Assets of discontinued operations | — | 156,103 | 169,032 | 155,411 | 166,823 |
Total Assets | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | $ 51,693,096 | $ 48,653,414 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 9,232,068 | $ 9,648,191 | $ 10,223,508 | $ 11,517,037 | $ 12,731,065 |
Interest bearing | 19,276,596 | 18,334,551 | 18,088,711 | 18,146,678 | 19,040,131 |
Savings | 2,720,913 | 2,837,348 | 2,983,709 | 3,226,685 | 3,473,746 |
Time deposits | 7,267,560 | 7,515,788 | 7,405,741 | 6,516,054 | 3,711,672 |
Total deposits | 38,497,137 | 38,335,878 | 38,701,669 | 39,406,454 | 38,956,614 |
Securities sold under agreement to repurchase | 451,516 | 862,589 | 790,758 | 771,335 | 708,736 |
Other short-term borrowings | 3,500,000 | 3,500,223 | 3,500,226 | 5,700,228 | 3,300,231 |
Subordinated and long-term debt | 438,460 | 449,323 | 449,733 | 462,144 | 462,554 |
Other liabilities | 879,554 | 876,195 | 806,305 | 763,912 | 815,703 |
Liabilities of discontinued operations | — | 103,545 | 104,119 | 98,606 | 98,202 |
Total Liabilities | 43,766,667 | 44,127,753 | 44,352,810 | 47,202,679 | 44,342,040 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 457,179 | 456,528 | 456,566 | 456,711 | 456,093 |
Capital surplus | 2,743,066 | 2,733,003 | 2,724,021 | 2,715,981 | 2,709,391 |
Accumulated other comprehensive loss | (761,829) | (1,309,921) | (1,163,075) | (1,081,886) | (1,222,538) |
Retained earnings | 2,562,434 | 2,348,654 | 2,301,345 | 2,232,618 | 2,201,435 |
Total Shareholders' Equity | 5,167,843 | 4,395,257 | 4,485,850 | 4,490,417 | 4,311,374 |
Total Liabilities & Shareholders' Equity | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | $ 51,693,096 | $ 48,653,414 |
Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited)
| |||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
ASSETS | |||||
Cash and due from banks | $ 443,504 | $ 362,479 | $ 402,744 | $ 500,507 | $ 428,575 |
Interest bearing deposits with other banks and Federal funds sold | 1,811,686 | 1,571,973 | 1,605,594 | 1,524,358 | 941,416 |
Available-for-sale securities, at fair value | 9,300,714 | 10,004,441 | 10,655,791 | 11,354,457 | 12,156,803 |
Loans and leases, net of unearned income | 32,529,030 | 32,311,572 | 31,901,096 | 30,891,640 | 29,812,924 |
Allowance for credit losses | 447,879 | 459,698 | 457,027 | 442,486 | 434,785 |
Net loans and leases | 32,081,151 | 31,851,874 | 31,444,069 | 30,449,154 | 29,378,139 |
Loans held for sale, at fair value | 113,234 | 115,653 | 67,038 | 46,863 | 62,517 |
Premises and equipment, net | 795,164 | 811,095 | 804,526 | 799,077 | 777,717 |
Goodwill | 1,367,916 | 1,367,785 | 1,367,785 | 1,367,784 | 1,370,106 |
Other intangible assets, net | 102,765 | 107,032 | 113,094 | 117,518 | 122,093 |
Bank-owned life insurance | 640,439 | 636,335 | 632,489 | 630,601 | 625,938 |
Other assets | 1,787,603 | 1,826,471 | 1,973,991 | 1,861,882 | 1,927,190 |
Total Assets | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 | $ 48,652,201 | $ 47,790,494 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 9,625,912 | $ 9,921,617 | $ 10,725,108 | $ 12,203,079 | $ 13,344,152 |
Interest bearing | 18,292,826 | 17,970,463 | 17,997,618 | 19,009,345 | 17,866,198 |
Savings | 2,758,977 | 2,913,027 | 3,088,174 | 3,363,236 | 3,555,911 |
Time deposits | 7,537,664 | 7,660,868 | 7,123,893 | 4,328,388 | 3,606,093 |
Total deposits | 38,215,379 | 38,465,975 | 38,934,793 | 38,904,048 | 38,372,354 |
Securities sold under agreement to repurchase | 753,018 | 827,055 | 774,170 | 727,975 | 660,974 |
Other short-term borrowings | 3,503,320 | 3,510,942 | 3,541,985 | 3,326,196 | 3,251,947 |
Subordinated and long-term debt | 443,251 | 449,568 | 455,617 | 462,385 | 462,927 |
Other liabilities | 1,021,865 | 896,436 | 821,203 | 835,136 | 826,707 |
Total Liabilities | 43,936,833 | 44,149,976 | 44,527,768 | 44,255,740 | 43,574,909 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 456,636 | 456,557 | 456,755 | 456,354 | 456,095 |
Capital surplus | 2,733,985 | 2,726,686 | 2,717,866 | 2,710,501 | 2,701,121 |
Accumulated other comprehensive loss | (1,279,235) | (1,175,077) | (1,087,389) | (1,174,723) | (1,302,388) |
Retained earnings | 2,428,964 | 2,330,003 | 2,285,128 | 2,237,336 | 2,193,764 |
Total Shareholders' Equity | 4,507,343 | 4,505,162 | 4,539,353 | 4,396,461 | 4,215,585 |
Total Liabilities & Shareholders' Equity | $ 48,444,176 | $ 48,655,138 | $ 49,067,121 | $ 48,652,201 | $ 47,790,494 |
Table 6 Consolidated Statements of Income (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(Dollars in thousands, except per share data) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
INTEREST REVENUE: | ||||||||
Loans and leases | $ 531,340 | $ 520,126 | $ 496,262 | $ 457,084 | $ 414,623 | $ 2,004,812 | $ 1,342,662 | |
Available-for-sale securities: | ||||||||
Taxable | 55,801 | 50,277 | 53,531 | 48,512 | 45,807 | 208,122 | 183,915 | |
Tax-exempt | 1,927 | 2,375 | 2,427 | 2,477 | 2,547 | 9,206 | 10,079 | |
Loans held for sale | 1,418 | 1,468 | 961 | 603 | 1,788 | 4,450 | 7,554 | |
Short-term investments | 24,701 | 21,213 | 20,214 | 17,450 | 8,781 | 83,577 | 16,371 | |
Total interest revenue | 615,187 | 595,459 | 573,395 | 526,126 | 473,546 | 2,310,167 | 1,560,581 | |
INTEREST EXPENSE: | ||||||||
Interest bearing demand deposits and money market accounts | 139,144 | 126,296 | 111,938 | 95,344 | 60,253 | 472,723 | 109,893 | |
Savings | 3,918 | 4,108 | 3,915 | 3,014 | 2,769 | 14,955 | 5,519 | |
Time deposits | 80,143 | 76,867 | 65,517 | 23,950 | 10,651 | 246,476 | 24,253 | |
Federal funds purchased and securities sold under agreement to repurchase | 8,254 | 9,004 | 7,656 | 7,667 | 8,365 | 32,581 | 13,432 | |
Short-term debt | 44,451 | 45,438 | 46,036 | 37,015 | 27,302 | 172,940 | 36,863 | |
Subordinated and long-term debt | 4,672 | 4,786 | 4,806 | 4,872 | 4,848 | 19,136 | 19,330 | |
Total interest expense | 280,582 | 266,499 | 239,868 | 171,862 | 114,188 | 958,811 | 209,290 | |
Net interest revenue | 334,605 | 328,960 | 333,527 | 354,264 | 359,358 | 1,351,356 | 1,351,291 | |
Provision for credit losses | 38,000 | 17,000 | 15,000 | 10,000 | 6,000 | 80,000 | 7,000 | |
Net interest revenue, after provision for credit losses | 296,605 | 311,960 | 318,527 | 344,264 | 353,358 | 1,271,356 | 1,344,291 | |
NONINTEREST REVENUE: | ||||||||
Mortgage banking | (1,137) | 5,684 | 8,356 | 6,076 | 2,571 | 18,978 | 44,860 | |
Credit card, debit card and merchant fees | 12,902 | 12,413 | 12,617 | 11,851 | 15,750 | 49,784 | 58,160 | |
Deposit service charges | 11,161 | 16,867 | 17,208 | 16,482 | 16,863 | 61,718 | 73,478 | |
Security (losses) gains, net | (384,524) | 64 | 69 | (51,261) | (595) | (435,652) | (384) | |
Wealth management | 22,576 | 21,079 | 21,741 | 21,532 | 19,199 | 86,928 | 80,486 | |
Other noninterest income | 27,562 | 17,882 | 26,673 | 29,783 | 26,408 | 101,901 | 85,885 | |
Total noninterest revenue | (311,460) | 73,989 | 86,664 | 34,463 | 80,196 | (116,343) | 342,485 | |
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 148,081 | 161,627 | 159,276 | 165,738 | 156,868 | 634,722 | 634,843 | |
Occupancy and equipment | 28,009 | 27,069 | 28,106 | 27,787 | 29,221 | 110,972 | 114,460 | |
Data processing and software | 32,922 | 29,127 | 27,289 | 31,105 | 28,510 | 120,443 | 111,107 | |
Merger expense | — | — | 122 | 5,070 | 19,916 | 5,192 | 50,845 | |
Amortization of intangibles | 4,405 | 4,436 | 6,081 | 4,466 | 4,695 | 19,388 | 18,432 | |
Deposit insurance assessments | 45,733 | 10,425 | 7,705 | 8,361 | 5,931 | 72,224 | 18,712 | |
Pension settlement expense | 11,226 | 600 | — | — | 6,127 | 11,826 | 9,023 | |
Other noninterest expense | 58,991 | 41,158 | 38,887 | 42,120 | 57,370 | 181,156 | 152,332 | |
Total noninterest expense | 329,367 | 274,442 | 267,466 | 284,647 | 308,638 | 1,155,923 | 1,109,754 | |
(Loss) income from continuing operations before taxes | (344,222) | 111,507 | 137,725 | 94,080 | 124,916 | (910) | 577,022 | |
Income tax (benefit) expense | (80,485) | 24,355 | 30,463 | 21,073 | 28,196 | (4,594) | 129,705 | |
(Loss) income from continuing operations | (263,737) | 87,152 | 107,262 | 73,007 | 96,720 | 3,684 | 447,317 | |
Income from discontinued operations | 706,129 | 7,242 | 9,238 | 4,982 | 2,646 | 727,591 | 22,353 | |
Income tax expense from discontinued operations | 183,328 | 1,811 | 2,472 | 1,360 | 1,432 | 188,971 | 6,433 | |
Income from discontinued operations, net of taxes | 522,801 | 5,431 | 6,766 | 3,622 | 1,214 | 538,620 | 15,920 | |
Net income | 259,064 | 92,583 | 114,028 | 76,629 | 97,934 | 542,304 | 463,237 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 9,488 | 9,488 | |
Net income available to common shareholders | $ 256,692 | $ 90,211 | $ 111,656 | $ 74,257 | $ 95,562 | $ 532,816 | $ 453,749 | |
Diluted (losses) earnings per common share from continuing operations | $ (1.46) | $ 0.46 | $ 0.57 | $ 0.38 | $ 0.51 | $ (0.03) | $ 2.37 | |
Diluted earnings per common share | $ 1.41 | $ 0.49 | $ 0.61 | $ 0.40 | $ 0.52 | $ 2.92 | $ 2.46 | |
Table 7 Selected Loan Portfolio Data (Unaudited) | |||||
Quarter Ended | |||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
LOAN AND LEASE PORTFOLIO: | |||||
Commercial and industrial | |||||
Non-real estate | $ 8,935,598 | $ 9,199,024 | $ 9,636,481 | $ 9,159,387 | $ 8,985,547 |
Owner occupied | 4,349,060 | 4,361,530 | 4,358,000 | 4,278,468 | 4,068,659 |
Total commercial and industrial | 13,284,658 | 13,560,554 | 13,994,481 | 13,437,855 | 13,054,206 |
Commercial real estate | |||||
Construction, acquisition and development | 3,910,962 | 3,819,307 | 3,744,114 | 3,703,137 | 3,547,986 |
Income producing | 5,736,871 | 5,720,606 | 5,596,134 | 5,368,676 | 5,150,680 |
Total commercial real estate | 9,647,833 | 9,539,913 | 9,340,248 | 9,071,813 | 8,698,666 |
Consumer | |||||
Residential mortgages | 9,329,692 | 9,186,179 | 8,989,614 | 8,536,032 | 8,319,242 |
Other consumer | 234,839 | 233,947 | 232,365 | 236,894 | 277,163 |
Total consumer | 9,564,531 | 9,420,126 | 9,221,979 | 8,772,926 | 8,596,405 |
Total loans and leases, net of unearned income | $ 32,497,022 | $ 32,520,593 | $ 32,556,708 | $ 31,282,594 | $ 30,349,277 |
NON-PERFORMING ASSETS | |||||
Non-performing Loans and Leases | |||||
Nonaccrual Loans and Leases | |||||
Commercial and industrial | |||||
Non-real estate | $ 131,559 | $ 67,962 | $ 72,592 | $ 65,783 | $ 23,907 |
Owner occupied | 7,097 | 6,486 | 7,541 | 9,089 | 7,944 |
Total commercial and industrial | 138,656 | 74,448 | 80,133 | 74,872 | 31,851 |
Commercial real estate | |||||
Construction, acquisition and development | 1,859 | 4,608 | 4,496 | 1,850 | 2,974 |
Income producing | 17,485 | 12,251 | 19,205 | 20,616 | 7,331 |
Total commercial real estate | 19,344 | 16,859 | 23,701 | 22,466 | 10,305 |
Consumer | |||||
Residential mortgages | 57,881 | 58,488 | 53,171 | 62,748 | 55,892 |
Other consumer | 260 | 243 | 238 | 529 | 697 |
Total consumer | 58,141 | 58,731 | 53,409 | 63,277 | 56,589 |
Total nonaccrual loans and leases | $ 216,141 | $ 150,038 | $ 157,243 | $ 160,615 | $ 98,745 |
Restructured loans and leases, still accruing (1) | — | — | — | — | 8,598 |
Total non-performing loans and leases (2) | $ 216,141 | $ 150,038 | $ 157,243 | $ 160,615 | $ 107,343 |
Other real estate owned and repossessed assets | 6,246 | 2,927 | 2,857 | 5,327 | 6,725 |
Total non-performing assets | $ 222,387 | $ 152,965 | $ 160,100 | $ 165,942 | $ 114,068 |
Government guaranteed portion of nonaccrual loans and | $ 49,551 | $ 42,046 | $ 35,322 | $ 30,218 | $ 20,830 |
Loans and leases 90+ days past due, still accruing | $ 22,466 | $ 9,152 | $ 4,412 | $ 5,164 | $ 2,068 |
Additions to nonaccrual loans and leases during the quarter (excluding acquisitions) | $ 131,136 | $ 69,154 | $ 57,764 | $ 89,779 | $ 38,945 |
(1) | Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023. |
Table 8 Allowance for Credit Losses (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
ALLOWANCE FOR CREDIT LOSSES: | |||||
Balance, beginning of period | $ 446,859 | $ 466,013 | $ 453,727 | $ 440,347 | $ 433,363 |
Charge-offs: | |||||
Commercial and industrial | (21,385) | (34,959) | (13,598) | (2,853) | (2,295) |
Commercial real estate | (2,290) | (931) | (126) | (1,988) | (426) |
Consumer | (3,229) | (1,608) | (1,916) | (2,189) | (2,650) |
Total loans charged-off | (26,904) | (37,498) | (15,640) | (7,030) | (5,371) |
Recoveries: | |||||
Commercial and industrial | 2,117 | 2,240 | 1,360 | 3,406 | 6,405 |
Commercial real estate | 95 | 201 | 618 | 779 | 2,851 |
Consumer | 867 | 903 | 948 | 970 | 1,099 |
Total recoveries | 3,079 | 3,344 | 2,926 | 5,155 | 10,355 |
Net (charge-offs) recoveries | (23,825) | (34,154) | (12,714) | (1,875) | 4,984 |
Adoption of new ASU related to modified loans (3) | — | — | — | 255 | — |
Provision for credit losses related to loans and leases | 45,000 | 15,000 | 25,000 | 15,000 | 2,000 |
Balance, end of period | $ 468,034 | $ 446,859 | $ 466,013 | $ 453,727 | $ 440,347 |
Average loans and leases, net of unearned income, for period | $ 32,529,030 | $ 32,311,572 | $ 31,901,096 | $ 30,891,640 | $ 29,812,924 |
Ratio: Net charge-offs (recoveries) to average loans and leases (2) | 0.29 % | 0.42 % | 0.16 % | 0.02 % | (0.07) % |
RESERVE FOR UNFUNDED COMMITMENTS (1) | |||||
Balance, beginning of period | $ 15,551 | $ 13,551 | $ 23,551 | $ 28,551 | $ 24,551 |
(Reversal) provision for credit losses for unfunded commitments | (7,000) | 2,000 | (10,000) | (5,000) | 4,000 |
Balance, end of period | $ 8,551 | $ 15,551 | $ 13,551 | $ 23,551 | $ 28,551 |
(1) | The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets. |
(2) | Annualized. |
(3) | Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023. |
Table 9 Loan Portfolio by Grades (Unaudited) | |||||||
December 31, 2023 | |||||||
(In thousands) | Pass | Special | Substandard | Loss | Impaired | Purchased | Total |
LOAN AND LEASE PORTFOLIO: | |||||||
Commercial and industrial | |||||||
Non-real estate | $ 8,450,809 | $ 101,607 | $ 294,895 | $ 13 | $ 84,457 | $ 3,817 | $ 8,935,598 |
Owner occupied | 4,287,190 | 32,409 | 27,070 | — | 1,275 | 1,116 | 4,349,060 |
Total commercial and industrial | 12,737,999 | 134,016 | 321,965 | 13 | 85,732 | 4,933 | 13,284,658 |
Commercial real estate | |||||||
Construction, acquisition and development | 3,894,551 | 3,364 | 13,047 | — | — | — | 3,910,962 |
Income producing | 5,527,388 | 23,727 | 170,217 | — | 15,539 | — | 5,736,871 |
Total commercial real estate | 9,421,939 | 27,091 | 183,264 | — | 15,539 | — | 9,647,833 |
Consumer (1) | |||||||
Residential mortgages | 9,258,002 | 4,066 | 66,050 | — | — | 1,574 | 9,329,692 |
Other consumer | 234,367 | — | 472 | — | — | — | 234,839 |
Total consumer | 9,492,369 | 4,066 | 66,522 | — | — | 1,574 | 9,564,531 |
Total loans and leases, net of unearned income | $ 31,652,307 | $ 165,173 | $ 571,751 | $ 13 | $ 101,271 | $ 6,507 | $ 32,497,022 |
(1) | During the second quarter of 2023, the Company began determining the risk rating classification of its Consumer portfolio based on nonaccrual and delinquency status in accordance with the Uniform Retail Credit Classification guidance and industry norms, which contributed to a lower number of criticized and classified loans compared to periods prior to the second quarter of 2023. As a result of the modification, current period results are not directly comparable to periods prior to the second quarter of 2023. |
September 30, 2023 | ||||||
(In thousands) | Pass | Special | Substandard | Impaired | Purchased | Total |
LOAN AND LEASE PORTFOLIO: | ||||||
Commercial and industrial | ||||||
Non-real estate | $ 8,690,172 | $ 100,118 | $ 388,741 | $ 15,337 | $ 4,656 | $ 9,199,024 |
Owner occupied | 4,281,916 | 30,414 | 46,803 | 1,275 | 1,122 | 4,361,530 |
Total commercial and industrial | 12,972,088 | 130,532 | 435,544 | 16,612 | 5,778 | 13,560,554 |
Commercial real estate | ||||||
Construction, acquisition and development | 3,798,695 | 2,975 | 17,637 | — | — | 3,819,307 |
Income producing | 5,519,028 | 65,473 | 124,731 | 11,374 | — | 5,720,606 |
Total commercial real estate | 9,317,723 | 68,448 | 142,368 | 11,374 | — | 9,539,913 |
Consumer | ||||||
Residential mortgages | 9,114,880 | 1,366 | 68,359 | — | 1,574 | 9,186,179 |
Other consumer | 233,505 | — | 442 | — | — | 233,947 |
Total consumer | 9,348,385 | 1,366 | 68,801 | — | 1,574 | 9,420,126 |
Total loans and leases, net of unearned income | $ 31,638,196 | $ 200,346 | $ 646,713 | $ 27,986 | $ 7,352 | $ 32,520,593 |
Table 10 Geographical Loan Information (Unaudited) | |||||||||||
December 31, 2023 | |||||||||||
(Dollars in thousands) | Alabama | Arkansas | Florida | Georgia | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total |
LOAN AND LEASE PORTFOLIO: | |||||||||||
Commercial and industrial | |||||||||||
Non-real estate | $ 417,687 | $ 158,759 | $ 503,957 | $ 528,205 | $ 346,840 | $ 532,593 | $ 62,507 | $ 373,991 | $ 3,718,233 | $ 2,292,826 | $ 8,935,598 |
Owner occupied | 345,679 | 247,584 | 281,750 | 313,532 | 292,347 | 591,611 | 90,227 | 167,464 | 1,676,272 | 342,594 | 4,349,060 |
Total commercial and industrial | 763,366 | 406,343 | 785,707 | 841,737 | 639,187 | 1,124,204 | 152,734 | 541,455 | 5,394,505 | 2,635,420 | 13,284,658 |
Commercial real estate | |||||||||||
Construction, acquisition and development | 202,977 | 79,365 | 363,597 | 472,953 | 54,985 | 194,535 | 46,014 | 182,393 | 1,799,697 | 514,446 | 3,910,962 |
Income producing | 446,290 | 273,000 | 369,897 | 605,160 | 212,148 | 435,089 | 208,216 | 296,918 | 2,080,393 | 809,760 | 5,736,871 |
Total commercial real estate | 649,267 | 352,365 | 733,494 | 1,078,113 | 267,133 | 629,624 | 254,230 | 479,311 | 3,880,090 | 1,324,206 | 9,647,833 |
Consumer | |||||||||||
Residential mortgages | 1,216,942 | 388,396 | 647,117 | 408,459 | 462,264 | 1,147,388 | 179,119 | 716,384 | 3,898,525 | 265,098 | 9,329,692 |
Other consumer | 31,155 | 18,488 | 5,563 | 6,431 | 11,587 | 87,229 | 1,780 | 17,892 | 49,397 | 5,317 | 234,839 |
Total consumer | 1,248,097 | 406,884 | 652,680 | 414,890 | 473,851 | 1,234,617 | 180,899 | 734,276 | 3,947,922 | 270,415 | 9,564,531 |
Total loans and leases, net of unearned income | $ 2,660,730 | $ 1,165,592 | $ 2,171,881 | $ 2,334,740 | $ 1,380,171 | $ 2,988,445 | $ 587,863 | $ 1,755,042 | $ 13,222,517 | $ 4,230,041 | $ 32,497,022 |
Loan growth, excluding loans acquired during the quarter ($) | $ 73,088 | $ (5,835) | $ 74,573 | $ 30,978 | $ 13,006 | $ 28,114 | $ 9,403 | $ 19,131 | $ (105,613) | $ (160,416) | $ (23,571) |
Loan growth, excluding loans acquired during the quarter (%) (annualized) | 11.21 % | (1.98) % | 14.11 % | 5.33 % | 3.77 % | 3.77 % | 6.45 % | 4.37 % | (3.14) % | (14.50) % | (0.29) % |
September 30, 2023 | |||||||||||
(Dollars in thousands) | Alabama | Arkansas | Florida | Georgia | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total |
LOAN AND LEASE PORTFOLIO: | |||||||||||
Commercial and industrial | |||||||||||
Non-real estate | $ 360,970 | $ 162,650 | $ 491,854 | $ 514,031 | $ 330,072 | $ 516,449 | $ 65,475 | $ 341,777 | $ 3,884,907 | $ 2,530,839 | $ 9,199,024 |
Owner occupied | 351,835 | 252,880 | 284,886 | 319,982 | 288,640 | 594,127 | 92,167 | 164,564 | 1,660,831 | 351,618 | 4,361,530 |
Total commercial and industrial | 712,805 | 415,530 | 776,740 | 834,013 | 618,712 | 1,110,576 | 157,642 | 506,341 | 5,545,738 | 2,882,457 | 13,560,554 |
Commercial real estate | |||||||||||
Construction, acquisition and development | 210,809 | 73,567 | 306,869 | 422,605 | 59,957 | 201,138 | 49,584 | 163,621 | 1,885,210 | 445,947 | 3,819,307 |
Income producing | 427,591 | 275,663 | 374,452 | 634,494 | 217,475 | 423,473 | 193,555 | 328,808 | 2,047,954 | 797,141 | 5,720,606 |
Total commercial real estate | 638,400 | 349,230 | 681,321 | 1,057,099 | 277,432 | 624,611 | 243,139 | 492,429 | 3,933,164 | 1,243,088 | 9,539,913 |
Consumer | |||||||||||
Residential mortgages | 1,204,991 | 388,592 | 634,059 | 405,382 | 459,661 | 1,138,245 | 175,973 | 720,227 | 3,799,189 | 259,860 | 9,186,179 |
Other consumer | 31,446 | 18,075 | 5,188 | 7,268 | 11,360 | 86,899 | 1,706 | 16,914 | 50,039 | 5,052 | 233,947 |
Total consumer | 1,236,437 | 406,667 | 639,247 | 412,650 | 471,021 | 1,225,144 | 177,679 | 737,141 | 3,849,228 | 264,912 | 9,420,126 |
Total loans and leases, net of unearned income | $ 2,587,642 | $ 1,171,427 | $ 2,097,308 | $ 2,303,762 | $ 1,367,165 | $ 2,960,331 | $ 578,460 | $ 1,735,911 | $ 13,328,130 | $ 4,390,457 | $ 32,520,593 |
Table 11 Noninterest Revenue and Expense (Unaudited) | ||||||||
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
NONINTEREST REVENUE: | ||||||||
Mortgage banking excl. MSR and MSR hedge market value adjustment | $ 3,931 | $ 5,842 | $ 6,774 | $ 8,379 | $ 5,408 | $ 24,926 | $ 24,642 | |
MSR and MSR hedge market value adjustment | (5,068) | (158) | 1,582 | (2,303) | (2,837) | (5,948) | 20,218 | |
Credit card, debit card and merchant fees | 12,902 | 12,413 | 12,617 | 11,851 | 15,750 | 49,784 | 58,160 | |
Deposit service charges | 11,161 | 16,867 | 17,208 | 16,482 | 16,863 | 61,718 | 73,478 | |
Security gains (losses), net | (384,524) | 64 | 69 | (51,261) | (595) | (435,652) | (384) | |
Trust income | 11,301 | 10,574 | 10,084 | 10,553 | 9,113 | 42,513 | 37,314 | |
Annuity fees | 1,839 | 1,882 | 1,702 | 2,192 | 951 | 7,614 | 2,908 | |
Brokerage commissions and fees | 9,436 | 8,623 | 9,955 | 8,787 | 9,135 | 36,801 | 40,264 | |
Bank-owned life insurance | 4,728 | 4,108 | 3,811 | 3,647 | 5,436 | 16,294 | 15,594 | |
Other miscellaneous income | 22,834 | 13,774 | 22,862 | 26,136 | 20,972 | 85,607 | 70,291 | |
Total noninterest revenue | $ (311,460) | $ 73,989 | $ 86,664 | $ 34,463 | $ 80,196 | $ (116,343) | $ 342,485 | |
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | $ 148,081 | $ 161,627 | $ 159,276 | $ 165,738 | $ 156,868 | $ 634,722 | $ 634,843 | |
Occupancy and equipment | 28,009 | 27,069 | 28,106 | 27,787 | 29,221 | 110,972 | 114,460 | |
Deposit insurance assessments | 45,733 | 10,425 | 7,705 | 8,361 | 5,931 | 72,224 | 18,712 | |
Pension settlement expense | 11,226 | 600 | — | — | 6,127 | 11,826 | 9,023 | |
Advertising and public relations | 12,632 | 5,671 | 5,618 | 4,241 | 28,419 | 28,162 | 41,055 | |
Foreclosed property expense | 915 | 270 | 323 | 980 | 400 | 2,488 | 832 | |
Telecommunications | 1,356 | 1,520 | 1,365 | 1,534 | 1,524 | 5,775 | 6,617 | |
Travel and entertainment | 3,146 | 2,442 | 2,850 | 2,565 | 3,980 | 11,004 | 11,407 | |
Data processing and software | 32,922 | 29,127 | 27,289 | 31,105 | 28,510 | 120,443 | 111,107 | |
Professional, consulting and outsourcing | 5,194 | 5,017 | 5,371 | 4,311 | 3,464 | 19,892 | 13,424 | |
Amortization of intangibles | 4,405 | 4,436 | 6,081 | 4,466 | 4,695 | 19,388 | 18,432 | |
Legal | 13,724 | 3,316 | 1,765 | 1,288 | 725 | 20,093 | 5,350 | |
Merger expense | — | — | 122 | 5,070 | 19,916 | 5,192 | 50,845 | |
Postage and shipping | 1,907 | 2,292 | 1,941 | 2,303 | 1,864 | 8,443 | 7,868 | |
Other miscellaneous expense | 20,117 | 20,630 | 19,654 | 24,898 | 16,994 | 85,299 | 65,779 | |
Total noninterest expense | $ 329,367 | $ 274,442 | $ 267,466 | $ 284,647 | $ 308,638 | $ 1,155,923 | $ 1,109,754 | |
Table 12 Average Balance and Yields (Unaudited) | |||||||||||
Quarter Ended | |||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||
(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 | $ 32,529,030 | $ 527,688 | 6.44 % | $ 32,311,572 | $ 513,989 | 6.31 % | $ 29,812,924 | $ 405,827 | 5.40 % | ||
Accretion income on acquired loans | 4,127 | 0.05 | 6,587 | 0.08 | 9,190 | 0.12 | |||||
Loans held for sale | 113,234 | 1,418 | 4.97 | 115,653 | 1,468 | 5.04 | 62,517 | 1,788 | 11.35 | ||
Investment securities | |||||||||||
Taxable | 9,044,724 | 55,801 | 2.45 | 9,635,084 | 50,277 | 2.07 | 11,767,062 | 45,807 | 1.54 | ||
Tax-exempt | 255,990 | 2,439 | 3.78 | 369,357 | 3,006 | 3.23 | 389,741 | 3,224 | 3.28 | ||
Total investment securities | 9,300,714 | 58,240 | 2.48 | 10,004,441 | 53,283 | 2.11 | 12,156,803 | 49,031 | 1.60 | ||
Other investments | 1,811,686 | 24,701 | 5.41 | 1,571,973 | 21,213 | 5.35 | 941,416 | 8,781 | 3.70 | ||
Total interest-earning assets | 43,754,664 | 616,174 | 5.59 % | 44,003,639 | 596,540 | 5.38 % | 42,973,660 | 474,617 | 4.38 % | ||
Other assets | 5,137,391 | 5,111,197 | 5,251,619 | ||||||||
Allowance for credit losses | 447,879 | 459,698 | 434,785 | ||||||||
Total assets | $ 48,444,176 | $ 48,655,138 | $ 47,790,494 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Interest-bearing liabilities: | |||||||||||
Interest bearing demand and money market | $ 18,292,826 | $ 139,144 | 3.02 % | $ 17,970,463 | $ 126,296 | 2.79 % | $ 17,866,198 | 60,253 | 1.34 % | ||
Savings deposits | 2,758,977 | 3,918 | 0.56 | 2,913,027 | 4,108 | 0.56 | 3,555,911 | 2,769 | 0.31 | ||
Time deposits | 7,537,664 | 80,143 | 4.22 | 7,660,868 | 76,867 | 3.98 | 3,606,093 | 10,651 | 1.17 | ||
Total interest-bearing deposits | 28,589,467 | 223,205 | 3.10 | 28,544,358 | 207,271 | 2.88 | 25,028,202 | 73,673 | 1.17 | ||
Fed funds purchased, securities sold under agreement to repurchase and other | 756,336 | 8,257 | 4.33 | 837,773 | 9,007 | 4.27 | 1,091,029 | 8,365 | 3.04 | ||
Short-term FHLB borrowings | 2 | — | — | 224 | 2 | 3.54 | 2,821,892 | 27,302 | 3.84 | ||
Short-term BTFP borrowings | 3,500,000 | 44,448 | 5.04 | 3,500,000 | 45,433 | 5.15 | — | — | — | ||
Long-term borrowings | 443,251 | 4,672 | 4.18 | 449,568 | 4,786 | 4.22 | 462,927 | 4,848 | 4.15 | ||
Total interest-bearing liabilities | 33,289,056 | 280,582 | 3.34 % | 33,331,923 | 266,499 | 3.17 % | 29,404,050 | 114,188 | 1.54 % | ||
Noninterest-bearing liabilities: | |||||||||||
Demand deposits | 9,625,912 | 9,921,617 | 13,344,152 | ||||||||
Other liabilities | 1,021,865 | 896,436 | 826,707 | ||||||||
Total liabilities | 43,936,833 | 44,149,976 | 43,574,909 | ||||||||
Shareholders' equity | 4,507,343 | 4,505,162 | 4,215,585 | ||||||||
Total liabilities and shareholders' equity | $ 48,444,176 | $ 48,655,138 | $ 47,790,494 | ||||||||
Net interest income/net interest spread | 335,592 | 2.25 % | 330,041 | 2.21 % | 360,429 | 2.84 % | |||||
Net yield on earning assets/net interest margin | 3.04 % | 2.98 % | 3.33 % | ||||||||
Taxable equivalent adjustment: | |||||||||||
Loans and investment securities | (987) | (1,081) | (1,071) | ||||||||
Net interest revenue | $ 334,605 | $ 328,960 | $ 359,358 | ||||||||
Table 12 Average Balance and Yields Cont. | |||||||
Year-To-Date | |||||||
December 31, 2023 | December 31, 2022 | ||||||
(Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | |
ASSETS | |||||||
Interest-earning assets: | |||||||
Loans and leases, excluding accretion | $ 31,913,925 | $ 1,980,600 | 6.21 % | $ 28,418,658 | $ 1,297,384 | 4.57 % | |
Accretion income on acquired loans | 25,949 | 0.08 | 46,811 | 0.16 | |||
Loans held for sale | 85,961 | 4,450 | 5.18 | 122,079 | 7,554 | 6.19 | |
Investment securities | |||||||
Taxable | 9,971,325 | 208,122 | 2.09 | 13,163,403 | 183,915 | 1.40 | |
Tax-exempt | 351,010 | 11,653 | 3.32 | 432,969 | 12,758 | 2.95 | |
Total investment securities | 10,322,335 | 219,775 | 2.13 | 13,596,372 | 196,673 | 1.45 | |
Other investments | 1,629,036 | 83,577 | 5.13 | 923,861 | 16,371 | 1.77 | |
Total interest-earning assets | 43,951,257 | 2,314,351 | 5.27 % | 43,060,970 | 1,564,793 | 3.63 % | |
Other assets | 5,204,505 | 4,911,883 | |||||
Allowance for credit losses | 451,809 | 439,696 | |||||
Total assets | $ 48,703,953 | $ 47,533,157 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Interest-bearing liabilities: | |||||||
Interest bearing demand and money market | $ 18,314,649 | 472,723 | 2.58 % | $ 18,541,402 | $ 109,893 | 0.59 % | |
Savings deposits | 3,028,875 | 14,955 | 0.49 | 3,657,718 | 5,519 | 0.15 | |
Time deposits | 6,674,231 | 246,476 | 3.69 | 3,545,402 | 24,253 | 0.68 | |
Total interest-bearing deposits | 28,017,755 | 734,154 | 2.62 | 25,744,522 | 139,665 | 0.54 | |
Fed funds purchased, securities sold under agreement to repurchase and other | 800,170 | 32,590 | 4.07 | 923,973 | 13,432 | 1.45 | |
Short-term FHLB borrowings | 1,389,759 | 68,235 | 4.91 | 1,325,381 | 36,863 | 2.78 | |
Short-term BTFP borrowings | 2,052,055 | 104,696 | 5.10 | — | — | — | |
Long-term borrowings | 452,645 | 19,136 | 4.23 | 465,004 | 19,330 | 4.16 | |
Total interest-bearing liabilities | 32,712,384 | 958,811 | 2.93 % | 28,458,880 | 209,290 | 0.74 % | |
Noninterest-bearing liabilities: | |||||||
Demand deposits | 10,610,698 | 13,733,384 | |||||
Other liabilities | 893,438 | 766,490 | |||||
Total liabilities | 44,216,520 | 42,958,754 | |||||
Shareholders' equity | 4,487,433 | 4,574,403 | |||||
Total liabilities and shareholders' equity | $ 48,703,953 | $ 47,533,157 | |||||
Net interest income/net interest spread | 1,355,540 | 2.33 % | 1,355,503 | 2.90 % | |||
Net yield on earning assets/net interest margin | 3.08 % | 3.15 % | |||||
Taxable equivalent adjustment: | |||||||
Loans and investment securities | (4,184) | (4,212) | |||||
Net interest revenue | $ 1,351,356 | $ 1,351,291 | |||||
Table 13 Selected Additional Data (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
MORTGAGE SERVICING RIGHTS ("MSR"): | |||||
Fair value, beginning of period | $ 116,266 | $ 111,417 | $ 106,942 | $ 109,744 | $ 112,767 |
Originations of servicing assets | 2,636 | 4,065 | 1,990 | 1,385 | 2,283 |
Changes in fair value: | |||||
Due to payoffs/paydowns | (3,035) | (2,104) | (2,621) | (1,078) | (2,308) |
Due to update in valuation assumptions | (9,043) | 2,888 | 5,106 | (3,109) | (2,998) |
Fair value, end of period | $ 106,824 | $ 116,266 | $ 111,417 | $ 106,942 | $ 109,744 |
MORTGAGE BANKING REVENUE: | |||||
Origination | $ 1,040 | $ 2,031 | $ 3,495 | $ 3,344 | $ 1,793 |
Servicing | 5,926 | 5,915 | 5,900 | 6,113 | 5,923 |
Payoffs/Paydowns | (3,035) | (2,104) | (2,621) | (1,078) | (2,308) |
Total mortgage banking revenue excluding MSR | 3,931 | 5,842 | 6,774 | 8,379 | 5,408 |
Market value adjustment on MSR | (9,043) | 2,888 | 5,106 | (3,109) | (2,998) |
Market value adjustment on MSR Hedge | 3,975 | (3,046) | (3,524) | 806 | 161 |
Total mortgage banking revenue | $ (1,137) | $ 5,684 | $ 8,356 | $ 6,076 | $ 2,571 |
Mortgage loans serviced | $ 7,702,592 | $ 7,643,885 | $ 7,550,676 | $ 7,633,236 | $ 7,692,744 |
MSR/mortgage loans serviced | 1.39 % | 1.52 % | 1.48 % | 1.40 % | 1.43 % |
Quarter Ended | |||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 |
AVAILABLE-FOR-SALE SECURITIES, at fair value | |||||
U.S. Treasury securities | $ 465,018 | $ 1,996 | $ 8,959 | $ 15,849 | $ 1,458,513 |
Obligations of U.S. government agencies | 332,011 | 1,004,374 | 1,112,326 | 1,358,350 | 1,477,127 |
Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"): | |||||
Residential pass-through: | |||||
Guaranteed by GNMA | 75,662 | 73,649 | 79,261 | 83,649 | 84,368 |
Issued by FNMA and FHLMC | 4,387,101 | 5,541,895 | 5,895,704 | 6,164,294 | 6,274,970 |
Other residential mortgage-back securities | 727,434 | 146,063 | 157,294 | 166,449 | 168,452 |
Commercial mortgage-backed securities | 1,742,837 | 2,271,680 | 2,357,047 | 2,427,808 | 1,881,853 |
Total MBS | 6,933,034 | 8,033,287 | 8,489,306 | 8,842,200 | 8,409,643 |
Obligations of states and political subdivisions | 137,624 | 392,252 | 433,316 | 447,731 | 466,002 |
Other domestic debt securities | 67,197 | 71,741 | 71,356 | 73,557 | 82,718 |
Foreign debt securities | 140,592 | 139,581 | 139,317 | 140,192 | 50,093 |
Total available-for-sale securities | $ 8,075,476 | $ 9,643,231 | $ 10,254,580 | $ 10,877,879 | $ 11,944,096 |
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), 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 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Adjusted Income from Continuing Operations | ||||||||
(Loss) income from continuing operations | $ (263,737) | $ 87,152 | $ 107,262 | $ 73,007 | $ 96,720 | $ 3,684 | $ 447,317 | |
Plus: Merger expense | — | — | 122 | 5,070 | 19,916 | 5,192 | 50,845 | |
Incremental merger related expense | 7,500 | — | 1,671 | 8,960 | 32,704 | 18,131 | 52,247 | |
Gain on extinguishment of debt | (652) | — | (1,140) | — | — | (1,792) | — | |
Restructuring and other nonroutine expenses | 41,522 | 9,596 | 6,219 | 212 | 2,254 | 57,548 | 3,094 | |
Pension settlement expense | 11,226 | 600 | — | — | 6,127 | 11,826 | 9,023 | |
Less: Security (losses) gains, net | (384,524) | 64 | 69 | (51,261) | (595) | (435,652) | (384) | |
Nonroutine (losses) gains, net | — | (6,653) | — | — | — | (6,653) | — | |
Tax adjustment | 105,275 | 3,944 | 1,599 | 15,393 | 14,580 | 126,211 | 27,361 | |
Adjusted income from continuing operations | 75,108 | 99,992 | 112,466 | 123,117 | 143,736 | 410,683 | 535,549 | |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | 9,488 | 9,488 | |
Adjusted income from continuing operations | $ 72,736 | $ 97,620 | $ 110,094 | $ 120,745 | $ 141,364 | $ 401,195 | $ 526,061 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Pre-Tax Pre-Provision Net Revenue from Continuing Operations | ||||||||
(Loss) income from continuing operations | $ (263,737) | $ 87,152 | $ 107,262 | $ 73,007 | $ 96,720 | $ 3,684 | $ 447,317 | |
Plus: Provision for credit losses | 38,000 | 17,000 | 15,000 | 10,000 | 6,000 | 80,000 | 7,000 | |
Income tax (benefit) expense | (80,485) | 24,355 | 30,463 | 21,073 | 28,196 | (4,594) | 129,705 | |
Pre-tax pre-provision net revenue from continuing operations | $ (306,222) | $ 128,507 | $ 152,725 | $ 104,080 | $ 130,916 | $ 79,090 | $ 584,022 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing Operations | ||||||||
(Loss) income from continuing operations | $ (263,737) | $ 87,152 | $ 107,262 | $ 73,007 | $ 96,720 | $ 3,684 | $ 447,317 | |
Plus: Provision for credit losses | 38,000 | 17,000 | 15,000 | 10,000 | 6,000 | 80,000 | 7,000 | |
Merger expense | — | — | 122 | 5,070 | 19,916 | 5,192 | 50,845 | |
Incremental merger related expense | 7,500 | — | 1,671 | 8,960 | 32,704 | 18,131 | 52,247 | |
Gain on extinguishment of debt | (652) | — | (1,140) | — | — | (1,792) | — | |
Restructuring and other nonroutine expenses | 41,522 | 9,596 | 6,219 | 212 | 2,254 | 57,548 | 3,094 | |
Pension settlement expense | 11,226 | 600 | — | — | 6,127 | 11,826 | 9,023 | |
Income tax (benefit) expense | (80,485) | 24,355 | 30,463 | 21,073 | 28,196 | (4,594) | 129,705 | |
Less: Security (losses) gains, net | (384,524) | 64 | 69 | (51,261) | (595) | (435,652) | (384) | |
Nonroutine (losses) gains, net | $ — | $ (6,653) | $ — | $ — | $ — | (6,653) | — | |
Adjusted pre-tax pre-provision net revenue from continuing operations | $ 137,898 | $ 145,292 | $ 159,528 | $ 169,583 | $ 192,512 | $ 612,300 | $ 699,615 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Total Adjusted Noninterest Revenue | ||||||||
Total noninterest revenue | $ (311,460) | $ 73,989 | $ 86,664 | $ 34,463 | $ 80,196 | $ (116,343) | $ 342,485 | |
Less: Security gains (losses), net | (384,524) | 64 | 69 | (51,261) | (595) | (435,652) | (384) | |
Nonroutine gains (losses), net | — | (6,653) | — | — | — | (6,653) | — | |
Total adjusted noninterest revenue | $ 73,064 | $ 80,578 | $ 86,595 | $ 85,724 | $ 80,791 | $ 325,962 | $ 342,869 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Total Adjusted Noninterest Expense | ||||||||
Total noninterest expense | $ 329,367 | $ 274,442 | $ 267,466 | $ 284,647 | $ 308,638 | $ 1,155,923 | $ 1,109,754 | |
Less: Merger expense | — | — | 122 | 5,070 | 19,916 | 5,192 | 50,845 | |
Incremental merger related expense | 7,500 | — | 1,671 | 8,960 | 32,704 | 18,131 | 52,247 | |
Gain on extinguishment of debt | (652) | — | (1,140) | — | — | (1,792) | — | |
Restructuring and other nonroutine expenses | 41,522 | 9,596 | 6,219 | 212 | 2,254 | 57,548 | 3,094 | |
Pension settlement expense | 11,226 | 600 | — | — | 6,127 | 11,826 | 9,023 | |
Total adjusted noninterest expense | $ 269,771 | $ 264,246 | $ 260,594 | $ 270,405 | $ 247,637 | $ 1,065,018 | $ 994,545 | |
Quarter Ended | Year-to-date | |||||||
(In thousands) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
Total Tangible Assets, Excluding AOCI | ||||||||
Total assets | $ 48,934,510 | $ 48,523,010 | $ 48,838,660 | $ 51,693,096 | $ 48,653,414 | $ 48,934,510 | $ 48,653,414 | |
Less: Goodwill | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | |
Other identifiable intangible assets | 100,191 | 104,596 | 109,033 | 115,113 | 119,579 | 100,191 | 119,579 | |
Total tangible assets | 47,466,534 | 47,050,629 | 47,361,842 | 50,210,198 | 47,166,050 | 47,466,534 | 47,166,050 | |
Less: AOCI | (761,829) | (1,309,921) | (1,163,075) | (1,081,886) | (1,222,538) | (761,829) | (1,222,538) | |
Total tangible assets, excluding AOCI | $ 48,228,363 | $ 48,360,550 | $ 48,524,917 | $ 51,292,084 | $ 48,388,588 | $ 48,228,363 | $ 48,388,588 | |
Quarter Ended | Year-to-date | |||||||
(Dollars in thousands, except per share data) | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Dec 2023 | Dec 2022 | |
PERIOD END BALANCES: | ||||||||
Total Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | $5,167,843 | $4,395,257 | $4,485,850 | $4,490,417 | $4,311,374 | $5,167,843 | $4,311,374 | |
Less: AOCI | (761,829) | (1,309,921) | (1,163,075) | (1,081,886) | (1,222,538) | (761,829) | (1,222,538) | |
Total shareholders' equity, excluding AOCI | $5,929,672 | $5,705,178 | $5,648,925 | $5,572,303 | $5,533,912 | $5,929,672 | $5,533,912 | |
Common Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | $5,167,843 | $4,395,257 | $4,485,850 | $4,490,417 | $4,311,374 | $5,167,843 | $4,311,374 | |
Less: preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Common shareholders' equity | 5,000,850 | 4,228,264 | 4,318,857 | 4,323,424 | 4,144,381 | 5,000,850 | 4,144,381 | |
Less: AOCI | (761,829) | (1,309,921) | (1,163,075) | (1,081,886) | (1,222,538) | (761,829) | (1,222,538) | |
Common shareholders' equity, excluding AOCI | $5,762,679 | $5,538,185 | $5,481,932 | $5,405,310 | $5,366,919 | $5,762,679 | $5,366,919 | |
Total Tangible Common Shareholders' Equity, Excluding AOCI | ||||||||
Total shareholders' equity | $5,167,843 | $4,395,257 | $4,485,850 | $4,490,417 | $4,311,374 | $5,167,843 | $4,311,374 | |
Less: Goodwill | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | 1,367,785 | |
Other identifiable intangible assets | 100,191 | 104,596 | 109,033 | 115,113 | 119,579 | 100,191 | 119,579 | |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Total tangible common shareholders' equity | 3,532,874 | 2,755,883 | 2,842,039 | 2,840,526 | 2,657,017 | 3,532,874 | 2,657,017 | |
Less: AOCI | (761,829) | (1,309,921) | (1,163,075) | (1,081,886) | (1,222,538) | (761,829) | (1,222,538) | |
Total tangible common shareholders' equity, excluding AOCI | $4,294,703 | $4,065,804 | $4,005,114 | $3,922,412 | $3,879,555 | $4,294,703 | $3,879,555 | |
AVERAGE BALANCES: | ||||||||
Total Tangible Common Shareholders' Equity | ||||||||
Total shareholders' equity | $4,507,343 | $4,505,162 | $4,539,353 | $4,396,461 | $4,215,585 | $4,487,433 | $4,574,403 | |
Less: Goodwill | 1,367,916 | 1,367,785 | 1,367,785 | 1,367,784 | 1,370,106 | 1,367,818 | 1,343,590 | |
Other identifiable intangible assets | 102,765 | 107,032 | 113,094 | 117,518 | 122,093 | 110,053 | 154,170 | |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |
Total tangible common shareholders' equity | $2,869,669 | $2,863,352 | $2,891,481 | $2,744,166 | $2,556,393 | $2,842,569 | $2,909,650 | |
Total average assets | $48,444,176 | $48,655,138 | $49,067,121 | $48,652,201 | $47,790,494 | $48,703,953 | $47,533,157 | |
Total shares of common stock outstanding | 182,871,775 | 182,611,075 | 182,626,229 | 182,684,578 | 182,437,265 | 182,871,775 | 182,437,265 | |
Average shares outstanding-diluted | 182,688,190 | 184,645,004 | 183,631,570 | 183,908,798 | 183,762,008 | 182,608,713 | 184,498,472 | |
Tangible common shareholders' equity to tangible assets (1) | 7.44 % | 5.86 % | 6.00 % | 5.66 % | 5.63 % | 7.44 % | 5.63 % | |
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (2) | 8.90 | 8.41 | 8.25 | 7.65 | 8.02 | 8.90 | 8.02 | |
Return on average tangible common equity from continuing operations (3) | (36.79) | 11.75 | 14.55 | 10.44 | 14.64 | (0.20) | 15.05 | |
Return on average tangible common equity (3) | 35.49 | 12.50 | 15.49 | 10.97 | 14.83 | 18.74 | 15.59 | |
Adjusted return on average tangible common equity from continuing operations (4) | 10.06 | 13.53 | 15.27 | 17.84 | 21.94 | 14.11 | 18.08 | |
Adjusted return on average assets from continuing operations (5) | 0.62 | 0.82 | 0.92 | 1.03 | 1.19 | 0.84 | 1.13 | |
Adjusted return on average common shareholders' equity from continuing operations (6) | 6.65 | 8.93 | 10.10 | 11.58 | 13.85 | 9.29 | 11.94 | |
Pre-tax pre-provision net revenue from continuing operations to total average assets (7) | (2.51) | 1.05 | 1.25 | 0.87 | 1.09 | 0.16 | 1.23 | |
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (8) | 1.13 | 1.18 | 1.30 | 1.41 | 1.60 | 1.26 | 1.47 | |
Tangible book value per common share (9) | $ 19.32 | $ 15.09 | $ 15.56 | $ 15.55 | $ 14.56 | $ 19.32 | $ 14.56 | |
Tangible book value per common share, excluding AOCI (10) | 23.48 | 22.26 | 21.93 | 21.47 | 21.27 | 23.48 | 21.27 | |
Adjusted earnings from continuing operations per common share (11) | $ 0.40 | $ 0.53 | $ 0.60 | $ 0.66 | $ 0.77 | $ 2.20 | $ 2.85 | |
Adjusted dividend payout ratio from continuing operations (12) | 58.75 % | 44.34 % | 39.17 % | 35.61 % | 28.57 % | 42.73 % | 30.88 % | |
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) | 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. |
(5) | 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. |
(6) | 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. |
(7) | 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. |
(8) | 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. |
(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 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. |
(12) | 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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