HOUSTON and TUPELO, Miss., July 22, 2024 /PRNewswire/ — Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended June 30, 2024.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Net charge-offs for the second quarter of 2024 were $22.6 million, or 0.28% of average net loans and leases on an annualized basis, compared with net charge-offs of $12.7 million, or 0.16% of average net loans and leases on an annualized basis, for the second quarter of 2023 and net charge-offs of $19.5 million, or 0.24% of average net loans and leases on an annualized basis, for the first quarter of 2024. The provision for credit losses for the second quarter of 2024 was $22.0 million, compared with $15.0 million for the second quarter of 2023 and $22.0 million for the first quarter of 2024. The allowance for credit losses of $470.0 million at June 30, 2024 declined slightly to 1.41% of total loans and leases compared to 1.44% of total loans and leases at March 31, 2024.
Total nonperforming assets as a percent of total assets were 0.46% at June 30, 2024 compared to 0.33% at June 30, 2023 and 0.51% at March 31, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.65% at June 30, 2024, compared to 0.48% at June 30, 2023 and 0.73% at March 31, 2024. Other real estate owned and other repossessed assets was $4.8 million at June 30, 2024 compared to the June 30, 2023 balance of $2.9 million and the March 31, 2024 balance of $5.3 million. For the second quarter of 2024, criticized and classified loans were relatively stable. Criticized loans represented 2.51% of loans at June 30, 2024 compared to 2.74% at June 30, 2023 and 2.64% at March 31, 2024, while classified loans were 2.09% at June 30, 2024 compared to 1.90% at June 30, 2023 and 2.19% at March 31, 2024.
Noninterest Revenue
Noninterest revenue was $100.7 million for the second quarter of 2024 compared with $86.7 million for the second quarter of 2023 and $83.8 million for the first quarter of 2024. Adjusted noninterest revenue(1) for the second quarter of 2024 was $85.7 million, compared with $86.6 million for the second quarter of 2023 and $83.8 million for the first quarter of 2024. Adjusted noninterest revenue(1) for the second quarter of 2024 excludes a gain of $15.0 million associated with the sale of businesses, primarily related to the sale of Cadence Business Solutions, LLC during the second quarter of 2024 (see Key Transactions below).
Wealth management revenue increased to $24.0 million for the second quarter of 2024, compared with $22.8 million for the first quarter of 2024. The second quarter 2024 increase was driven by asset management and trust revenue as well as retail brokerage.
Credit card, debit card and merchant fee revenue was $12.8 million for the second quarter of 2024, up slightly from $12.2 million for the first quarter of 2024. Deposit service charge revenue was $17.7 million for the second quarter of 2024 compared to $18.3 million for the first quarter of 2024 due to seasonality. Other noninterest revenue was $40.1 million for the second quarter of 2024, increased from $24.0 million for the first quarter of 2024. Other noninterest revenue for the second quarter of 2024 included the $15.0 million gain on sale of businesses as well as an increase of $3.1 million in partnership income as a result of improved SBIC investment valuations.
Mortgage production and servicing revenue totaled $7.2 million for the second quarter of 2024, compared with $6.8 million for the second quarter of 2023 and $6.5 million for the first quarter of 2024. The net MSR valuation adjustment was a negative $1.0 million for the second quarter of 2024, compared with a positive $1.5 million for the second quarter of 2023 and an insignificant adjustment for the first quarter of 2024. Mortgage origination volume for the second quarter of 2024 was $758.4 million, compared with $848.9 million for the second quarter of 2023 and $437.2 million for the first quarter of 2024.
Noninterest Expense
Noninterest expense for the second quarter of 2024 was $256.7 million, compared with $267.5 million for the second quarter of 2023 and $263.2 million for the first quarter of 2024. Adjusted noninterest expense(1) for the second quarter of 2024 was $251.1 million, compared with $260.6 million for the second quarter of 2023 and $263.5 million for the first quarter of 2024. Adjusted noninterest expense for the second quarter of 2024 excludes a $1.1 million gain on the extinguishment of debt as well as a charge of $6.3 million related to the FDIC deposit insurance special assessment. The adjusted efficiency ratio(1) was 56.7% for the second quarter of 2024, meaningfully improved from both 60.1% for the first quarter of 2024 and 61.9% for the second quarter of 2023.
The $12.4 million, or 4.7%, linked quarter decline in adjusted noninterest expense(1) was driven by declines in salaries and employee benefits expense as well as other noninterest expense, partially offset by a seasonal increase in advertising and public relations. Salaries and employee benefits declined $8.6 million compared to the first quarter of 2024 due primarily to lower compensation costs, increased deferred compensation related to loan originations, and anticipated seasonal reductions in payroll taxes and 401k match. Other noninterest expense declined $5.3 million compared to the first quarter of 2024. This decline included decreases in a number of expense items including recoveries in legal costs and operational losses as well as lower other miscellaneous expenses.
Capital Management
Total shareholders’ equity was $5.3 billion at June 30, 2024 compared with $4.5 billion at June 30, 2023 and $5.2 billion at March 31, 2024. Estimated regulatory capital ratios at June 30, 2024 included Common Equity Tier 1 capital of 11.9%, Tier 1 capital of 12.3%, Total risk-based capital of 14.2%, and Tier 1 leverage capital of 9.7%. During the second quarter of 2024, the Company repurchased 256,033 shares of Company common stock at an average price of $26.97. The company has 9.1 million shares remaining on its current share repurchase authorization, which expires on December 31, 2024. Outstanding common shares were 182.4 million as of June 30, 2024.
Summary
Rollins concluded, “We are very proud of the accomplishments the Company has reported over the first half of 2024. We announced back-to-back quarters reflecting strong operating performance driven by organic growth in loans, increases in our net interest margin, increased operating leverage and stable credit quality, all backed by strong capital and liquidity. Our Company is driven and committed to taking care of our customers, our teammates and the communities we serve.”
Key Transactions
Effective May 17, 2024, the Company completed the sale of Cadence Business Solutions, its payroll processing business unit, resulting in a net gain on sale of approximately $12 million. The impact on both revenues and expenses is not material. The payroll processing unit had previously been part of Cadence Insurance, Inc., prior to its sale in November 2023.
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million. The Transaction resulted in net capital creation of approximately $625 million, including a net gain on sale of approximately $525 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.
Conference Call and Webcast
The Company will conduct a conference call to discuss its second quarter 2024 financial results on July 23, 2024, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.
About Cadence Bank
Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the South and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.
(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 “Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions” beginning on page 21 of this news release.
(2) See Table 14 for detail on non-routine income and expenses.
(3) Given the sale of Cadence Insurance, Inc. (“Cadence Insurance”) in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented.
Forward-Looking Statements
Certain statements made in this news release constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the “bespeaks caution” doctrine. These statements are often, but not exclusively, made through the use of words or phrases like “assume,” “believe,” “budget,” “contemplate,” “continue,” “could,” “foresee,” “indicate,” “may,” “might,” “outlook,” “prospect,” “potential,” “roadmap,” “should,” “target,” “will,” “would,” the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company’s comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale on the Company’s financial condition and future net income and earnings per share, and the Company’s ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management’s expectations as well as certain assumptions and estimates made by, and information available to, the Company’s management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company’s control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for 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 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.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company’s periodic and current reports filed with the FDIC, including those factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading “Item 1A. Risk Factors,” in the Company’s Quarterly Reports on Form 10-Q under the heading “Part II-Item 1A. Risk Factors,” and in the Company’s Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Table 1
Selected Financial Data
(Unaudited)
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Earnings Summary:
Interest revenue
$ 642,210
$ 637,113
$ 615,187
$ 595,459
$ 573,395
$ 1,279,323
$ 1,099,521
Interest expense
285,892
283,205
280,582
266,499
239,868
569,097
411,730
Net interest revenue
356,318
353,908
334,605
328,960
333,527
710,226
687,791
Provision for credit losses
22,000
22,000
38,000
17,000
15,000
44,000
25,000
Net interest revenue, after provision for credit losses
334,318
331,908
296,605
311,960
318,527
666,226
662,791
Noninterest revenue
100,658
83,786
(311,460)
73,989
86,664
184,444
121,127
Noninterest expense
256,697
263,207
329,367
274,442
267,466
519,904
552,113
Income (loss) from continuing operations before income taxes
178,279
152,487
(344,222)
111,507
137,725
330,766
231,805
Income tax expense (benefit)
40,807
35,509
(80,485)
24,355
30,463
76,316
51,536
Income (loss) from continuing operations
137,472
116,978
(263,737)
87,152
107,262
254,450
180,269
Income from discontinued operations, net of taxes
—
—
522,801
5,431
6,766
—
10,388
Net income
137,472
116,978
259,064
92,583
114,028
254,450
190,657
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
4,744
4,744
Net income available to common shareholders
$ 135,100
$ 114,606
$ 256,692
$ 90,211
$ 111,656
$ 249,706
$ 185,913
Balance Sheet – Period End Balances
Total assets
$ 47,984,078
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 47,984,078
$ 48,838,660
Total earning assets
43,525,688
43,968,692
44,192,887
43,727,058
44,010,411
43,525,688
44,010,411
Available for sale securities
7,921,422
8,306,589
8,075,476
9,643,231
10,254,580
7,921,422
10,254,580
Loans and leases, net of unearned income
33,312,773
32,882,616
32,497,022
32,520,593
32,556,708
33,312,773
32,556,708
Allowance for credit losses (ACL)
470,022
472,575
468,034
446,859
466,013
470,022
466,013
Net book value of acquired loans
5,543,419
6,011,007
6,353,344
6,895,487
7,357,174
5,543,419
7,357,174
Unamortized net discount on acquired loans
20,874
23,715
26,928
30,761
37,000
20,874
37,000
Total deposits
37,858,659
38,120,226
38,497,137
38,335,878
38,701,669
37,858,659
38,701,669
Total deposits and repurchase agreements
37,913,693
38,214,616
38,948,653
39,198,467
39,492,427
37,913,693
39,492,427
Other short-term borrowings
3,500,000
3,500,000
3,500,000
3,500,223
3,500,226
3,500,000
3,500,226
Subordinated and long-term debt
269,353
430,123
438,460
449,323
449,733
269,353
449,733
Total shareholders’ equity
5,287,758
5,189,932
5,167,843
4,395,257
4,485,850
5,287,758
4,485,850
Total shareholders’ equity, excluding AOCI (1)
6,070,220
5,981,265
5,929,672
5,705,178
5,648,925
6,070,220
5,648,925
Common shareholders’ equity
5,120,765
5,022,939
5,000,850
4,228,264
4,318,857
5,120,765
4,318,857
Common shareholders’ equity, excluding AOCI (1)
$ 5,903,227
$ 5,814,272
$ 5,762,679
$ 5,538,185
$ 5,481,932
$ 5,903,227
$ 5,481,932
Balance Sheet – Average Balances
Total assets
$ 48,192,719
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
$ 48,417,630
$ 48,860,807
Total earning assets
43,851,822
44,226,077
43,754,664
44,003,639
44,229,519
44,038,950
44,024,558
Available for sale securities
8,033,552
8,269,708
9,300,714
10,004,441
10,655,791
8,151,630
11,003,194
Loans and leases, net of unearned income
32,945,526
32,737,574
32,529,030
32,311,572
31,901,096
32,841,550
31,399,156
Total deposits
38,100,087
38,421,272
38,215,379
38,465,975
38,934,793
38,260,680
38,919,505
Total deposits and repurchase agreements
38,165,908
38,630,620
38,968,397
39,293,030
39,708,963
38,398,265
39,670,703
Other short-term borrowings
3,500,000
3,500,000
3,503,320
3,510,942
3,541,985
3,500,000
3,434,688
Subordinated and long-term debt
404,231
434,579
443,251
449,568
455,617
419,405
458,982
Total shareholders’ equity
5,207,254
5,194,048
4,507,343
4,505,162
4,539,353
5,200,651
4,468,302
Common shareholders’ equity
$ 5,040,261
$ 5,027,055
$ 4,340,350
$ 4,338,169
$ 4,372,360
$ 5,033,658
$ 4,301,309
Nonperforming Assets:
Nonperforming loans and leases (NPL) (2) (3)
216,746
241,007
216,141
150,038
157,243
216,746
157,243
Other real estate owned and other assets
4,793
5,280
6,246
2,927
2,857
4,793
2,857
Nonperforming assets (NPA)
$ 221,539
$ 246,287
$ 222,387
$ 152,965
$ 160,100
$ 221,539
$ 160,100
(1)
Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 – 26.
(2)
At June 30, 2024, $71.4 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information.
(3)
At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.
Table 2
Selected Financial Ratios
Quarter Ended
Year-to-date
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Financial Ratios and Other Data:
Return on average assets from continuing operations (2)
1.15 %
0.97 %
(2.16) %
0.71 %
0.88 %
1.06 %
0.74 %
Return on average assets (2)
1.15 %
0.97 %
2.12 %
0.75 %
0.93 %
1.06 %
0.79 %
Adjusted return on average assets from continuing operations (1)(2)
1.09
0.97
0.62
0.82
0.92
1.03
0.97
Return on average common shareholders’ equity from continuing operations (2)
10.78
9.17
(24.32)
7.75
9.62
9.98
8.23
Return on average common shareholders’ equity (2)
10.78
9.17
23.46
8.25
10.24
9.98
8.72
Adjusted return on average common shareholders’ equity from continuing operations (1)(2)
10.21
9.15
6.65
8.93
10.10
9.68
10.82
Return on average tangible common equity from continuing operations (1)(2)
15.18
12.94
(36.79)
11.75
14.55
14.07
12.56
Return on average tangible common equity (1)(2)
15.18
12.94
35.49
12.50
15.49
14.07
13.30
Adjusted return on average tangible common equity from continuing operations (1)(2)
14.37
12.92
10.06
13.53
15.27
13.65
16.52
Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2)
1.67
1.44
(2.51)
1.05
1.25
1.56
1.06
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2)
1.59
1.44
1.13
1.18
1.30
1.52
1.36
Net interest margin-fully taxable equivalent
3.27
3.22
3.04
2.98
3.03
3.25
3.16
Net interest rate spread-fully taxable equivalent
2.45
2.40
2.25
2.21
2.29
2.42
2.46
Efficiency ratio fully tax equivalent (1)
56.09
60.05
NM
67.93
63.49
58.03
68.08
Adjusted efficiency ratio fully tax equivalent (1)
56.73
60.12
66.01
64.35
61.87
58.42
61.58
Loan/deposit ratio
87.99 %
86.26 %
84.41 %
84.83 %
84.12 %
87.99 %
84.12 %
Full time equivalent employees
5,290
5,322
5,333
6,160
6,479
5,290
6,479
Credit Quality Ratios:
Net charge-offs to average loans and leases (2)
0.28 %
0.24 %
0.29 %
0.42 %
0.16 %
0.26 %
0.09 %
Provision for credit losses to average loans and leases (2)
0.27
0.27
0.46
0.21
0.19
0.27
0.16
ACL to loans and leases, net
1.41
1.44
1.44
1.37
1.43
1.41
1.43
ACL to NPL
216.85
196.08
216.54
297.83
296.36
216.85
296.36
NPL to loans and leases, net
0.65
0.73
0.67
0.46
0.48
0.65
0.48
NPA to total assets
0.46
0.51
0.45
0.32
0.33
0.46
0.33
Equity Ratios:
Total shareholders’ equity to total assets
11.02 %
10.74 %
10.56 %
9.06 %
9.19 %
11.02 %
9.19 %
Total common shareholders’ equity to total assets
10.67
10.40
10.22
8.71
8.84
10.67
8.84
Tangible common shareholders’ equity to tangible assets (1)
7.87
7.60
7.44
5.86
6.00
7.87
6.00
Tangible common shareholders’ equity, excluding AOCI, to tangible assets, excluding AOCI (1)
9.40
9.13
8.90
8.41
8.25
9.40
8.25
Capital Adequacy (3):
Common Equity Tier 1 capital
11.9 %
11.7 %
11.6 %
10.3 %
10.1 %
11.9 %
10.1 %
Tier 1 capital
12.3
12.2
12.1
10.8
10.5
12.3
10.5
Total capital
14.2
14.5
14.3
12.9
12.7
14.2
12.7
Tier 1 leverage capital
9.7
9.5
9.3
8.6
8.5
9.7
8.5
(1)
Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 – 26.
(2)
Annualized.
(3)
Current quarter regulatory capital ratios are estimated.
NM – Not meaningful
Table 3
Selected Financial Information
Quarter Ended
Year-to-date
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Common Share Data:
Diluted earnings (losses) per share from continuing operations
$ 0.73
$ 0.62
$ (1.46)
$ 0.46
$ 0.57
$ 1.35
$ 0.96
Adjusted earnings per share from continuing operations (1)
0.69
0.62
0.40
0.53
0.60
1.31
1.26
Diluted earnings per share
0.73
0.62
1.41
0.49
0.61
1.35
1.01
Cash dividends per share
0.250
0.250
0.235
0.235
0.235
0.500
0.47
Book value per share
28.07
27.50
27.35
23.15
23.65
28.07
23.65
Tangible book value per share (1)
20.08
19.48
19.32
15.09
15.56
20.08
15.56
Market value per share (last)
28.28
29.00
29.59
21.22
19.88
28.28
19.88
Market value per share (high)
29.95
30.03
31.45
25.87
21.73
30.03
28.18
Market value per share (low)
26.16
24.99
19.67
19.00
16.95
24.99
16.95
Market value per share (average)
28.14
27.80
24.40
22.56
19.73
27.97
22.32
Dividend payout ratio from continuing operations
34.25 %
40.48 %
(16.13) %
51.09 %
41.23 %
37.04 %
48.96 %
Adjusted dividend payout ratio from continuing operations (1)
36.23 %
40.32 %
58.75 %
44.34 %
39.17 %
38.17 %
37.30 %
Total shares outstanding
182,430,427
182,681,325
182,871,775
182,611,075
182,626,229
182,430,427
182,626,229
Average shares outstanding – diluted
185,260,963
185,574,130
182,688,190
184,645,004
183,631,570
185,417,547
183,770,759
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases
6.59 %
6.50 %
6.48 %
6.39 %
6.24 %
6.55 %
6.13 %
Loans, loans held for sale, and leases excluding net accretion on acquired loans and leases
6.56
6.46
6.43
6.31
6.18
6.51
6.03
Available for sale securities:
Taxable
3.18
3.11
2.45
2.07
2.09
3.15
1.94
Tax-exempt
4.12
4.25
3.78
3.23
3.21
4.19
3.21
Other investments
5.45
5.48
5.41
5.36
5.05
5.47
4.85
Total interest earning assets and revenue
5.90
5.80
5.59
5.38
5.21
5.85
5.05
Deposits
2.53
2.45
2.32
2.14
1.87
2.49
1.57
Interest bearing demand and money market
3.13
3.11
3.02
2.79
2.49
3.12
2.26
Savings
0.57
0.57
0.56
0.56
0.51
0.57
0.43
Time
4.53
4.42
4.22
3.98
3.69
4.47
3.15
Total interest bearing deposits
3.28
3.21
3.10
2.88
2.58
3.24
2.23
Fed funds purchased, securities sold under agreement to repurchase and other
4.47
4.86
4.33
4.27
3.97
4.76
3.85
Short-term FHLB borrowings
—
—
—
3.54
5.24
—
4.91
Short-term BTFP borrowings
4.77
4.84
5.04
5.15
5.15
4.81
5.15
Total interest bearing deposits and short-term borrowings
3.44
3.39
3.33
3.16
2.90
3.41
2.56
Subordinated and long-term borrowings
4.41
4.35
4.18
4.22
4.23
4.38
4.25
Total interest bearing liabilities
3.45
3.40
3.34
3.17
2.92
3.43
2.59
Interest bearing liabilities to interest earning assets
75.97 %
75.73 %
76.08 %
75.74 %
74.57 %
75.85 %
72.92 %
Net interest income tax equivalent adjustment (in thousands)
$ 644
$ 636
$ 987
$ 1,081
$ 1,063
$ 1,280
$ 2,114
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 – 26.
NM – Not meaningful
Table 4
Consolidated Balance Sheets
(Unaudited)
As of
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
ASSETS
Cash and due from banks
$ 516,715
$ 427,543
$ 798,177
$ 594,787
$ 722,625
Interest bearing deposits with other banks and Federal funds sold
2,093,820
2,609,931
3,434,088
1,400,858
1,005,889
Available for sale securities, at fair value
7,921,422
8,306,589
8,075,476
9,643,231
10,254,580
Loans and leases, net of unearned income
33,312,773
32,882,616
32,497,022
32,520,593
32,556,708
Allowance for credit losses
470,022
472,575
468,034
446,859
466,013
Net loans and leases
32,842,751
32,410,041
32,028,988
32,073,734
32,090,695
Loans held for sale, at fair value
197,673
169,556
186,301
162,376
193,234
Premises and equipment, net
808,705
822,666
802,133
789,698
804,732
Goodwill
1,366,923
1,367,785
1,367,785
1,367,785
1,367,785
Other intangible assets, net
91,027
96,126
100,191
104,596
109,033
Bank-owned life insurance
648,970
645,167
642,840
639,073
634,985
Other assets
1,496,072
1,458,459
1,498,531
1,590,769
1,486,070
Assets of discontinued operations
—
—
—
156,103
169,032
Total Assets
$ 47,984,078
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
LIABILITIES
Deposits:
Demand: Noninterest bearing
$ 8,586,265
$ 8,820,468
$ 9,232,068
$ 9,648,191
$ 10,223,508
Interest bearing
18,514,015
18,945,982
19,276,596
18,334,551
18,088,711
Savings
2,613,950
2,694,777
2,720,913
2,837,348
2,983,709
Time deposits
8,144,429
7,658,999
7,267,560
7,515,788
7,405,741
Total deposits
37,858,659
38,120,226
38,497,137
38,335,878
38,701,669
Securities sold under agreement to repurchase
55,034
94,390
451,516
862,589
790,758
Other short-term borrowings
3,500,000
3,500,000
3,500,000
3,500,223
3,500,226
Subordinated and long-term debt
269,353
430,123
438,460
449,323
449,733
Other liabilities
1,013,274
979,192
879,554
876,195
806,305
Liabilities of discontinued operations
—
—
—
103,545
104,119
Total Liabilities
42,696,320
43,123,931
43,766,667
44,127,753
44,352,810
SHAREHOLDERS’ EQUITY
Preferred stock
166,993
166,993
166,993
166,993
166,993
Common stock
456,076
456,703
457,179
456,528
456,566
Capital surplus
2,724,656
2,724,587
2,743,066
2,733,003
2,724,021
Accumulated other comprehensive loss
(782,462)
(791,333)
(761,829)
(1,309,921)
(1,163,075)
Retained earnings
2,722,495
2,632,982
2,562,434
2,348,654
2,301,345
Total Shareholders’ Equity
5,287,758
5,189,932
5,167,843
4,395,257
4,485,850
Total Liabilities & Shareholders’ Equity
$ 47,984,078
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
Table 5
Consolidated Quarterly Average Balance Sheets
(Unaudited)
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
ASSETS
Cash and due from banks
$ 456,938
$ 557,009
$ 443,504
$ 362,479
$ 402,744
Interest bearing deposits with other banks and Federal funds sold
2,758,385
3,146,439
1,811,686
1,571,973
1,605,594
Available for sale securities, at fair value
8,033,552
8,269,708
9,300,714
10,004,441
10,655,791
Loans and leases, net of unearned income
32,945,526
32,737,574
32,529,030
32,311,572
31,901,096
Allowance for credit losses
475,181
473,849
447,879
459,698
457,027
Net loans and leases
32,470,345
32,263,725
32,081,151
31,851,874
31,444,069
Loans held for sale, at fair value
114,359
72,356
113,234
115,653
67,038
Premises and equipment, net
815,920
808,473
795,164
811,095
804,526
Goodwill
1,367,358
1,367,785
1,367,916
1,367,785
1,367,785
Other intangible assets, net
93,743
98,350
102,765
107,032
113,094
Bank-owned life insurance
646,124
643,189
640,439
636,335
632,489
Other assets
1,435,995
1,415,506
1,787,603
1,826,471
1,973,991
Total Assets
$ 48,192,719
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
LIABILITIES
Deposits:
Demand: Noninterest bearing
$ 8,757,029
$ 9,072,619
$ 9,625,912
$ 9,921,617
$ 10,725,108
Interest bearing
18,770,093
19,303,845
18,292,826
17,970,463
17,997,618
Savings
2,652,019
2,696,452
2,758,977
2,913,027
3,088,174
Time deposits
7,920,946
7,348,356
7,537,664
7,660,868
7,123,893
Total deposits
38,100,087
38,421,272
38,215,379
38,465,975
38,934,793
Securities sold under agreement to repurchase
65,821
209,348
753,018
827,055
774,170
Other short-term borrowings
3,500,000
3,500,000
3,503,320
3,510,942
3,541,985
Subordinated and long-term debt
404,231
434,579
443,251
449,568
455,617
Other liabilities
915,326
883,293
1,021,865
896,436
821,203
Total Liabilities
42,985,465
43,448,492
43,936,833
44,149,976
44,527,768
SHAREHOLDERS’ EQUITY
Preferred stock
166,993
166,993
166,993
166,993
166,993
Common stock
456,618
456,437
456,636
456,557
456,755
Capital surplus
2,724,838
2,733,902
2,733,985
2,726,686
2,717,866
Accumulated other comprehensive loss
(838,710)
(777,940)
(1,279,235)
(1,175,077)
(1,087,389)
Retained earnings
2,697,515
2,614,656
2,428,964
2,330,003
2,285,128
Total Shareholders’ Equity
5,207,254
5,194,048
4,507,343
4,505,162
4,539,353
Total Liabilities & Shareholders’ Equity
$ 48,192,719
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
Table 6
Consolidated Statements of Income
(Unaudited)
Quarter Ended
Year-to-date
(Dollars in thousands, except per share data)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
INTEREST REVENUE:
Loans and leases
$ 539,685
$ 528,940
$ 531,340
$ 520,126
$ 496,262
$ 1,068,624
$ 953,346
Available for sale securities:
Taxable
62,852
63,405
55,801
50,277
53,531
126,257
102,043
Tax-exempt
638
687
1,927
2,375
2,427
1,325
4,904
Loans held for sale
1,652
1,184
1,418
1,468
961
2,837
1,564
Short-term investments
37,383
42,897
24,701
21,213
20,214
80,280
37,664
Total interest revenue
642,210
637,113
615,187
595,459
573,395
1,279,323
1,099,521
INTEREST EXPENSE:
Interest bearing demand deposits and money market accounts
146,279
149,403
139,144
126,296
111,938
295,682
207,282
Savings
3,743
3,801
3,918
4,108
3,915
7,544
6,929
Time deposits
89,173
80,670
80,143
76,867
65,517
169,842
89,467
Federal funds purchased and securities sold under agreement to repurchase
724
2,523
8,254
9,004
7,656
3,247
15,323
Short-term debt
41,544
42,109
44,451
45,438
46,036
83,653
83,051
Subordinated and long-term debt
4,429
4,699
4,672
4,786
4,806
9,129
9,678
Total interest expense
285,892
283,205
280,582
266,499
239,868
569,097
411,730
Net interest revenue
356,318
353,908
334,605
328,960
333,527
710,226
687,791
Provision for credit losses
22,000
22,000
38,000
17,000
15,000
44,000
25,000
Net interest revenue, after provision for credit losses
334,318
331,908
296,605
311,960
318,527
666,226
662,791
NONINTEREST REVENUE:
Mortgage banking
6,173
6,443
(1,137)
5,684
8,356
12,616
14,432
Credit card, debit card and merchant fees
12,770
12,162
12,902
12,413
12,617
24,932
24,469
Deposit service charges
17,652
18,338
11,161
16,867
17,208
35,989
33,690
Security (losses) gains, net
(4)
(9)
(384,524)
64
69
(12)
(51,192)
Wealth management
24,006
22,833
22,576
21,079
21,741
46,839
43,272
Other noninterest income
40,061
24,019
27,562
17,882
26,673
64,080
56,456
Total noninterest revenue
100,658
83,786
(311,460)
73,989
86,664
184,444
121,127
NONINTEREST EXPENSE:
Salaries and employee benefits
148,038
156,650
148,081
161,627
159,276
304,689
325,014
Occupancy and equipment
29,367
28,640
28,009
27,069
28,106
58,007
55,893
Data processing and software
29,467
30,028
32,922
29,127
27,289
59,494
58,395
Merger expense
—
—
—
—
122
—
5,192
Amortization of intangibles
3,999
4,066
4,405
4,436
6,081
8,065
10,547
Deposit insurance assessments
15,741
8,414
45,733
10,425
7,705
24,156
16,066
Pension settlement expense
—
—
11,226
600
—
—
—
Other noninterest expense
30,085
35,409
58,991
41,158
38,887
65,493
81,006
Total noninterest expense
256,697
263,207
329,367
274,442
267,466
519,904
552,113
Income (loss) from continuing operations before taxes
178,279
152,487
(344,222)
111,507
137,725
330,766
231,805
Income tax expense (benefit)
40,807
35,509
(80,485)
24,355
30,463
76,316
51,536
Income (loss) from continuing operations
$ 137,472
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
254,450
180,269
Income from discontinued operations
—
—
706,129
7,242
9,238
—
14,220
Income tax expense from discontinued operations
—
—
183,328
1,811
2,472
—
3,832
Income from discontinued operations, net of taxes
—
—
522,801
5,431
6,766
—
10,388
Net income
137,472
116,978
259,064
92,583
114,028
254,450
190,657
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
4,744
4,744
Net income available to common shareholders
$ 135,100
$ 114,606
$ 256,692
$ 90,211
$ 111,656
$ 249,706
$ 185,913
Diluted earnings (losses) per common share from continuing operations
$ 0.73
$ 0.62
$ (1.46)
$ 0.46
$ 0.57
$ 1.35
$ 0.96
Diluted earnings per common share
$ 0.73
$ 0.62
$ 1.41
$ 0.49
$ 0.61
$ 1.35
$ 1.01
Table 7
Selected Loan Portfolio Data
(Unaudited)
Quarter Ended
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 9,136,929
$ 9,121,457
$ 8,935,598
$ 9,199,024
$ 9,636,481
Owner occupied
4,475,647
4,442,357
4,349,060
4,361,530
4,358,000
Total commercial and industrial
13,612,576
13,563,814
13,284,658
13,560,554
13,994,481
Commercial real estate
Construction, acquisition and development
3,892,527
3,864,351
3,910,962
3,819,307
3,744,114
Income producing
5,851,340
5,783,943
5,736,871
5,720,606
5,596,134
Total commercial real estate
9,743,867
9,648,294
9,647,833
9,539,913
9,340,248
Consumer
Residential mortgages
9,740,713
9,447,675
9,329,692
9,186,179
8,989,614
Other consumer
215,617
222,833
234,839
233,947
232,365
Total consumer
9,956,330
9,670,508
9,564,531
9,420,126
9,221,979
Total loans and leases, net of unearned income
$ 33,312,773
$ 32,882,616
$ 32,497,022
$ 32,520,593
$ 32,556,708
NONPERFORMING ASSETS
Nonperforming Loans and Leases
Commercial and industrial
Non-real estate
$ 121,171
$ 149,683
$ 131,559
$ 67,962
$ 72,592
Owner occupied
13,700
5,962
7,097
6,486
7,541
Total commercial and industrial
134,871
155,645
138,656
74,448
80,133
Commercial real estate
Construction, acquisition and development
4,923
3,787
1,859
4,608
4,496
Income producing
15,002
19,428
17,485
12,251
19,205
Total commercial real estate
19,925
23,215
19,344
16,859
23,701
Consumer
Residential mortgages
61,677
61,886
57,881
58,488
53,171
Other consumer
273
261
260
243
238
Total consumer
61,950
62,147
58,141
58,731
53,409
Total nonperforming loans and leases (1)
$ 216,746
$ 241,007
$ 216,141
$ 150,038
$ 157,243
Other real estate owned and repossessed assets
4,793
5,280
6,246
2,927
2,857
Total nonperforming assets
$ 221,539
$ 246,287
$ 222,387
$ 152,965
$ 160,100
Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA
$ 71,418
$ 59,897
$ 49,551
$ 42,046
$ 35,322
Loans and leases 90+ days past due, still accruing
$ 6,150
$ 30,048
$ 22,466
$ 9,152
$ 4,412
(1) At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.
Table 8
Allowance for Credit Losses
(Unaudited)
Quarter Ended
(Dollars in thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period
$ 472,575
$ 468,034
$ 446,859
$ 466,013
$ 453,727
Charge-offs:
Commercial and industrial
(23,340)
(16,997)
(21,385)
(34,959)
(13,598)
Commercial real estate
(649)
(2,244)
(2,290)
(931)
(126)
Consumer
(2,294)
(2,395)
(3,229)
(1,608)
(1,916)
Total loans charged-off
(26,283)
(21,636)
(26,904)
(37,498)
(15,640)
Recoveries:
Commercial and industrial
2,943
1,312
2,117
2,240
1,360
Commercial real estate
101
150
95
201
618
Consumer
686
715
867
903
948
Total recoveries
3,730
2,177
3,079
3,344
2,926
Net charge-offs
(22,553)
(19,459)
(23,825)
(34,154)
(12,714)
Provision for credit losses related to loans and leases
20,000
24,000
45,000
15,000
25,000
Balance, end of period
$ 470,022
$ 472,575
$ 468,034
$ 446,859
$ 466,013
Average loans and leases, net of unearned income, for period
$ 32,945,526
$ 32,737,574
$ 32,529,030
$ 32,311,572
$ 31,901,096
Ratio: Net charge-offs to average loans and leases (2)
0.28 %
0.24 %
0.29 %
0.42 %
0.16 %
RESERVE FOR UNFUNDED COMMITMENTS (1)
Balance, beginning of period
$ 6,551
$ 8,551
$ 15,551
$ 13,551
$ 23,551
Provision (reversal) for credit losses for unfunded commitments
2,000
(2,000)
(7,000)
2,000
(10,000)
Balance, end of period
$ 8,551
$ 6,551
$ 8,551
$ 15,551
$ 13,551
(1)
The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.
(2)
Annualized.
Table 9
Loan Portfolio by Grades
(Unaudited)
June 30, 2024
(In thousands)
Pass
Special Mention
Substandard
Impaired
Purchased Credit Deteriorated (Loss)
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 8,657,327
$ 116,208
$ 309,809
$ 49,914
$ 3,671
$ 9,136,929
Owner occupied
4,413,813
9,872
42,860
7,998
1,104
4,475,647
Total commercial and industrial
13,071,140
126,080
352,669
57,912
4,775
13,612,576
Commercial real estate
Construction, acquisition and development
3,875,914
926
14,273
1,414
—
3,892,527
Income producing
5,655,410
12,007
170,305
13,618
—
5,851,340
Total commercial real estate
9,531,324
12,933
184,578
15,032
—
9,743,867
Consumer
Residential mortgages
9,658,697
799
79,759
—
1,458
9,740,713
Other consumer
215,104
—
513
—
—
215,617
Total consumer
9,873,801
799
80,272
—
1,458
9,956,330
Total loans and leases, net of unearned income
$ 32,476,265
$ 139,812
$ 617,519
$ 72,944
$ 6,233
$ 33,312,773
March 31, 2024
(In thousands)
Pass
Special Mention
Substandard
Doubtful
Impaired
Purchased Credit Deteriorated (Loss)
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 8,615,472
$ 101,824
$ 307,065
$ 16
$ 93,335
$ 3,745
$ 9,121,457
Owner occupied
4,381,398
20,682
37,894
—
1,275
1,108
4,442,357
Total commercial and industrial
12,996,870
122,506
344,959
16
94,610
4,853
13,563,814
Commercial real estate
Construction, acquisition and development
3,846,801
2,668
13,468
—
1,414
—
3,864,351
Income producing
5,575,662
25,360
165,680
—
17,241
—
5,783,943
Total commercial real estate
9,422,463
28,028
179,148
—
18,655
—
9,648,294
Consumer
Residential mortgages
9,371,570
—
74,531
—
—
1,574
9,447,675
Other consumer
222,245
—
588
—
—
—
222,833
Total consumer
9,593,815
—
75,119
—
—
1,574
9,670,508
Total loans and leases, net of unearned income
$ 32,013,148
$ 150,534
$ 599,226
$ 16
$ 113,265
$ 6,427
$ 32,882,616
Table 10
Geographical Loan Information
(Unaudited)
June 30, 2024
(Dollars in thousands)
Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Missouri
Tennessee
Texas
Other
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 385,251
$ 166,222
$ 516,717
$ 491,184
$ 351,731
$ 535,447
$ 74,535
$ 331,710
$ 3,644,417
$ 2,639,715
$ 9,136,929
Owner occupied
346,525
241,106
311,070
311,358
294,390
602,399
97,739
161,289
1,761,399
348,372
4,475,647
Total commercial and industrial
731,776
407,328
827,787
802,542
646,121
1,137,846
172,274
492,999
5,405,816
2,988,087
13,612,576
Commercial real estate
Construction, acquisition and development
195,318
68,561
420,107
529,531
48,133
210,904
43,146
168,474
1,632,361
575,992
3,892,527
Income producing
426,133
261,575
373,876
560,683
213,649
430,971
203,927
297,257
2,260,782
822,487
5,851,340
Total commercial real estate
621,451
330,136
793,983
1,090,214
261,782
641,875
247,073
465,731
3,893,143
1,398,479
9,743,867
Consumer
Residential mortgages
1,257,791
393,730
679,028
426,349
464,187
1,177,933
202,196
747,121
4,146,204
246,174
9,740,713
Other consumer
25,256
17,164
4,922
7,111
11,029
85,548
1,810
16,079
41,714
4,984
215,617
Total consumer
1,283,047
410,894
683,950
433,460
475,216
1,263,481
204,006
763,200
4,187,918
251,158
9,956,330
Total
$ 2,636,274
$ 1,148,358
$ 2,305,720
$ 2,326,216
$ 1,383,119
$ 3,043,202
$ 623,353
$ 1,721,930
$ 13,486,877
$ 4,637,724
$ 33,312,773
Loan growth, excluding loans acquired during the quarter ($)
$ (30,416)
$ 3,395
$ 21,100
$ (6,790)
$ 32,136
$ 25,581
$ 19,822
$ 17,667
$ 61,050
$ 286,612
$ 430,157
Loan growth, excluding loans acquired during the quarter (%) (annualized)
(4.59) %
1.19 %
3.71 %
(1.17) %
9.57 %
3.41 %
13.21 %
4.17 %
1.83 %
26.49 %
5.26 %
March 31, 2024
(Dollars in thousands)
Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Missouri
Tennessee
Texas
Other
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 413,301
$ 146,430
$ 542,282
$ 539,664
$ 328,789
$ 533,880
$ 70,147
$ 321,934
$ 3,740,402
$ 2,484,628
$ 9,121,457
Owner occupied
352,403
245,047
284,283
307,074
296,196
615,518
96,778
168,039
1,735,411
341,608
4,442,357
Total commercial and industrial
765,704
391,477
826,565
846,738
624,985
1,149,398
166,925
489,973
5,475,813
2,826,236
13,563,814
Commercial real estate
Construction, acquisition and development
196,775
79,748
425,582
528,889
40,494
203,222
39,893
175,446
1,665,187
509,115
3,864,351
Income producing
442,236
265,621
360,230
531,762
213,757
425,447
203,475
295,180
2,250,912
795,323
5,783,943
Total commercial real estate
639,011
345,369
785,812
1,060,651
254,251
628,669
243,368
470,626
3,916,099
1,304,438
9,648,294
Consumer
Residential mortgages
1,232,302
390,552
667,203
418,748
460,552
1,155,102
191,468
726,161
3,989,512
216,075
9,447,675
Other consumer
29,673
17,565
5,040
6,869
11,195
84,452
1,770
17,503
44,403
4,363
222,833
Total consumer
1,261,975
408,117
672,243
425,617
471,747
1,239,554
193,238
743,664
4,033,915
220,438
9,670,508
Total loans and leases, net of unearned income
$ 2,666,690
$ 1,144,963
$ 2,284,620
$ 2,333,006
$ 1,350,983
$ 3,017,621
$ 603,531
$ 1,704,263
$ 13,425,827
$ 4,351,112
$ 32,882,616
Table 11
Noninterest Revenue and Expense
(Unaudited)
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
NONINTEREST REVENUE:
Mortgage banking excl. MSR and MSR hedge market value adjustment
$ 7,171
$ 6,460
$ 3,931
$ 5,842
$ 6,774
$ 13,631
$ 15,153
MSR and MSR hedge market value adjustment
(998)
(17)
(5,068)
(158)
1,582
(1,015)
(721)
Credit card, debit card and merchant fees
12,770
12,162
12,902
12,413
12,617
24,932
24,469
Deposit service charges
17,652
18,338
11,161
16,867
17,208
35,989
33,690
Security (losses) gains, net
(4)
(9)
(384,524)
64
69
(12)
(51,192)
Trust income
12,645
11,322
11,301
10,574
10,084
23,967
20,637
Annuity fees
1,666
1,705
1,839
1,882
1,702
3,371
3,893
Brokerage commissions and fees
9,695
9,806
9,436
8,623
9,955
19,501
18,742
Bank-owned life insurance
4,370
3,946
4,728
4,108
3,811
8,316
7,458
Other miscellaneous income
35,691
20,073
22,834
13,774
22,862
55,764
48,998
Total noninterest revenue
$ 100,658
$ 83,786
$ (311,460)
$ 73,989
$ 86,664
$ 184,444
$ 121,127
NONINTEREST EXPENSE:
Salaries and employee benefits
$ 148,038
$ 156,650
$ 148,081
$ 161,627
$ 159,276
$ 304,689
$ 325,014
Occupancy and equipment
29,367
28,640
28,009
27,069
28,106
58,007
55,893
Deposit insurance assessments
15,741
8,414
45,733
10,425
7,705
24,156
16,066
Pension settlement expense
—
—
11,226
600
—
—
—
Advertising and public relations
6,537
4,224
12,632
5,671
5,618
10,760
9,859
Foreclosed property expense
515
268
915
270
323
783
1,303
Telecommunications
1,441
1,545
1,356
1,520
1,365
2,985
2,899
Travel and entertainment
2,549
2,236
3,146
2,442
2,850
4,785
5,416
Data processing and software
29,467
30,028
32,922
29,127
27,289
59,494
58,395
Professional, consulting and outsourcing
3,534
3,935
5,194
5,017
5,371
7,469
9,681
Amortization of intangibles
3,999
4,066
4,405
4,436
6,081
8,065
10,547
Legal
758
3,682
13,724
3,316
1,765
4,440
3,052
Merger expense
—
—
—
—
122
—
5,192
Postage and shipping
1,622
2,205
1,907
2,292
1,941
3,827
4,244
Other miscellaneous expense
13,129
17,314
20,117
20,630
19,654
30,443
44,552
Total noninterest expense
$ 256,697
$ 263,207
$ 329,367
$ 274,442
$ 267,466
$ 519,904
$ 552,113
Table 12
Average Balance and Yields
(Unaudited)
Quarter Ended
June 30, 2024
March 31, 2024
June 30, 2023
(Dollars in thousands)
Average
Balance
Income/ Expense
Yield/
Rate
Average
Balance
Income/ Expense
Yield/
Rate
Average
Balance
Income/ Expense
Yield/
Rate
ASSETS
Interest-earning assets:
Loans and leases, excluding accretion
$ 32,945,526
$ 537,179
6.56 %
$ 32,737,574
$ 525,878
6.46 %
$ 31,901,096
$ 491,473
6.17 %
Accretion income on acquired loans
2,981
0.03
3,515
0.04
5,207
0.07
Loans held for sale
114,359
1,652
5.81
72,356
1,184
6.58
67,038
961
5.75
Investment securities
Taxable
7,954,865
62,852
3.18
8,187,342
63,405
3.11
10,272,425
53,531
2.09
Tax-exempt
78,687
807
4.12
82,366
870
4.25
383,366
3,072
3.21
Total investment securities
8,033,552
63,659
3.19
8,269,708
64,275
3.13
10,655,791
56,603
2.13
Other investments
2,758,385
37,383
5.45
3,146,439
42,897
5.48
1,605,594
20,214
5.05
Total interest-earning assets
43,851,822
642,854
5.90 %
44,226,077
637,749
5.80 %
44,229,519
574,458
5.21 %
Other assets
4,816,078
4,890,312
5,294,629
Allowance for credit losses
475,181
473,849
457,027
Total assets
$ 48,192,719
$ 48,642,540
$ 49,067,121
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest bearing demand and money market
$ 18,770,093
$ 146,279
3.13 %
$ 19,303,845
$ 149,403
3.11 %
$ 17,997,618
111,938
2.49 %
Savings deposits
2,652,019
3,743
0.57
2,696,452
3,801
0.57
3,088,174
3,915
0.51
Time deposits
7,920,946
89,173
4.53
7,348,356
80,670
4.42
7,123,893
65,517
3.69
Total interest-bearing deposits
29,343,058
239,195
3.28
29,348,653
233,874
3.21
28,209,685
181,370
2.58
Fed funds purchased, securities sold under agreement to repurchase and other
65,821
732
4.47
209,348
2,528
4.86
774,170
7,658
3.97
Short-term FHLB borrowings
—
—
—
—
—
—
2,388,139
31,219
5.24
Short-term BTFP borrowings
3,500,000
41,536
4.77
3,500,000
42,104
4.84
1,153,846
14,815
5.15
Subordinated and long-term borrowings
404,231
4,429
4.41
434,579
4,699
4.35
455,617
4,806
4.23
Total interest-bearing liabilities
33,313,110
285,892
3.45 %
33,492,580
283,205
3.40 %
32,981,457
239,868
2.92 %
Noninterest-bearing liabilities:
Demand deposits
8,757,029
9,072,619
10,725,108
Other liabilities
915,326
883,293
821,203
Total liabilities
42,985,465
43,448,492
44,527,768
Shareholders’ equity
5,207,254
5,194,048
4,539,353
Total liabilities and shareholders’ equity
$ 48,192,719
$ 48,642,540
$ 49,067,121
Net interest income/net interest spread
356,962
2.45 %
354,544
2.40 %
334,590
2.29 %
Net yield on earning assets/net interest margin
3.27 %
3.22 %
3.03 %
Taxable equivalent adjustment:
Loans and investment securities
(644)
(636)
(1,063)
Net interest revenue
$ 356,318
$ 353,908
$ 333,527
Table 12
Average Balance and Yields Continued
Year-To-Date
June 30, 2024
June 30, 2023
(Dollars in thousands)
Average
Balance
Income/ Expense
Yield/
Rate
Average
Balance
Income/ Expense
Yield/
Rate
ASSETS
Interest-earning assets:
Loans and leases, excluding accretion
$ 32,841,550
$ 1,063,056
6.51 %
$ 31,399,156
$ 938,922
6.03 %
Accretion income on acquired loans
6,496
0.04
15,235
0.10
Loans held for sale
93,358
2,837
6.11
57,007
1,564
5.53
Investment securities
Taxable
8,071,103
126,257
3.15
10,613,212
102,043
1.94
Tax-exempt
80,527
1,677
4.19
389,982
6,207
3.21
Total investment securities
8,151,630
127,934
3.16
11,003,194
108,250
1.98
Other investments
2,952,412
80,280
5.47
1,565,201
37,664
4.85
Total interest-earning assets
44,038,950
1,280,603
5.85 %
44,024,558
1,101,635
5.05 %
Other assets
4,853,195
5,286,046
Allowance for credit losses
474,515
449,797
Total assets
$ 48,417,630
$ 48,860,807
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest bearing demand and money market
$ 19,036,969
295,682
3.12 %
$ 18,500,687
$ 207,282
2.26 %
Savings deposits
2,674,236
7,544
0.57
3,224,945
6,929
0.43
Time deposits
7,634,651
169,842
4.47
5,733,863
89,467
3.15
Total interest-bearing deposits
29,345,856
473,068
3.24
27,459,495
303,678
2.23
Fed funds purchased, securities sold under agreement to repurchase and other
137,585
3,260
4.76
803,338
15,327
3.85
Short-term FHLB borrowings
—
—
—
2,802,438
68,232
4.91
Short-term BTFP borrowings
3,500,000
83,640
4.81
580,111
14,815
5.15
Subordinated and long-term borrowings
419,405
9,129
4.38
458,982
9,678
4.25
Total interest-bearing liabilities
33,402,846
569,097
3.43 %
32,104,364
411,730
2.59 %
Noninterest-bearing liabilities:
Demand deposits
8,914,824
11,460,010
Other liabilities
899,309
828,131
Total liabilities
43,216,979
44,392,505
Shareholders’ equity
5,200,651
4,468,302
Total liabilities and shareholders’ equity
$ 48,417,630
$ 48,860,807
Net interest income/net interest spread
711,506
2.42 %
689,905
2.46 %
Net yield on earning assets/net interest margin
3.25 %
3.16 %
Taxable equivalent adjustment:
Loans and investment securities
(1,280)
(2,114)
Net interest revenue
$ 710,226
$ 687,791
Table 13
Selected Additional Data
(Unaudited)
Quarter Ended
(Dollars in thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
MORTGAGE SERVICING RIGHTS (“MSR”):
Fair value, beginning of period
$ 111,685
$ 106,824
$ 116,266
$ 111,417
$ 106,942
Originations of servicing assets
3,687
2,736
2,636
4,065
1,990
Changes in fair value:
Due to payoffs/paydowns
(2,704)
(2,656)
(3,035)
(2,104)
(2,621)
Due to update in valuation assumptions
927
4,781
(9,043)
2,888
5,106
Fair value, end of period
$ 113,595
$ 111,685
$ 106,824
$ 116,266
$ 111,417
MORTGAGE BANKING REVENUE:
Origination
$ 3,976
$ 3,165
$ 1,040
$ 2,031
$ 3,495
Servicing
5,899
5,951
5,926
5,915
5,900
Payoffs/Paydowns
(2,704)
(2,656)
(3,035)
(2,104)
(2,621)
Total mortgage banking revenue excluding MSR
7,171
6,460
3,931
5,842
6,774
Market value adjustment on MSR
927
4,781
(9,043)
2,888
5,106
Market value adjustment on MSR Hedge
(1,925)
(4,798)
3,975
(3,046)
(3,524)
Total mortgage banking revenue
$ 6,173
$ 6,443
$ (1,137)
$ 5,684
$ 8,356
Mortgage loans serviced
$ 7,824,895
$ 7,764,936
$ 7,702,592
$ 7,643,885
$ 7,550,676
MSR/mortgage loans serviced
1.45 %
1.44 %
1.39 %
1.52 %
1.48 %
Quarter Ended
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
AVAILABLE FOR SALE SECURITIES, at fair value
U.S. Treasury securities
$ —
$ 239,402
$ 465,018
$ 1,996
$ 8,959
Obligations of U.S. government agencies
305,200
318,233
332,011
1,004,374
1,112,326
Mortgage-backed securities issued or guaranteed by U.S. agencies (“MBS”):
Residential pass-through:
Guaranteed by GNMA
69,788
72,034
75,662
73,649
79,261
Issued by FNMA and FHLMC
4,125,416
4,254,227
4,387,101
5,541,895
5,895,704
Other residential mortgage-back securities
1,233,868
1,210,617
727,434
146,063
157,294
Commercial mortgage-backed securities
1,673,823
1,694,967
1,742,837
2,271,680
2,357,047
Total MBS
7,102,895
7,231,845
6,933,034
8,033,287
8,489,306
Obligations of states and political subdivisions
133,155
134,643
137,624
392,252
433,316
Other domestic debt securities
64,288
67,421
67,197
71,741
71,356
Foreign debt securities
315,884
315,045
140,592
139,581
139,317
Total available for sale securities
$ 7,921,422
$ 8,306,589
$ 8,075,476
$ 9,643,231
$ 10,254,580
Table 14
Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions
(Unaudited)
Management evaluates the Company’s capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted income from continuing operations, adjusted income from continuing operations available to common shareholders, pre-tax pre-provision net revenue from continuing operations, adjusted pre-tax pre-provision net revenue from continuing operations, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders’ equity to tangible assets, total shareholders’ equity (excluding AOCI), common shareholders’ equity (excluding AOCI), tangible common shareholders’ equity to tangible assets (excluding AOCI), return on average tangible common equity from continuing operations, return on average tangible common equity, adjusted return on average tangible common equity from continuing operations, adjusted return on average tangible common equity, adjusted return on average assets from continuing operations, adjusted return on average assets, adjusted return on average common shareholders’ equity from continuing operations, adjusted return on average common shareholders’ equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio from continuing operations, and adjusted dividend payout ratio from continuing operations. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company’s capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company’s business and (iii) allows investors to evaluate the Company’s performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies’ non-GAAP financial measures having the same or similar names.
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Adjusted Income from Continuing Operations Available to Common Shareholders
Income (loss) from continuing operations
$ 137,472
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 254,450
$ 180,269
Plus: Merger expense
—
—
—
—
122
—
5,192
Incremental merger related expense
—
—
7,500
—
1,671
—
10,631
Gain on extinguishment of debt
(1,098)
(576)
(652)
—
(1,140)
(1,674)
(1,140)
Restructuring and other nonroutine expenses
6,675
251
41,522
9,596
6,219
6,926
6,431
Pension settlement expense
—
—
11,226
600
—
—
—
Less: Security (losses) gains, net
(4)
(9)
(384,524)
64
69
(12)
(51,192)
Gain on sale of businesses
14,980
—
—
—
—
14,980
—
Nonroutine (losses) gains, net
—
—
—
(6,653)
—
—
—
Tax adjustment
(2,209)
(74)
105,275
3,944
1,599
(2,283)
16,992
Adjusted income from continuing operations
130,282
116,736
75,108
99,992
112,466
247,017
235,583
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
4,744
4,744
Adjusted income from continuing operations available to common shareholders
$ 127,910
$ 114,364
$ 72,736
$ 97,620
$ 110,094
$ 242,273
$ 230,839
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Pre-Tax Pre-Provision Net Revenue from Continuing Operations
Income (loss) from continuing operations
$ 137,472
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 254,450
$ 180,269
Plus: Provision for credit losses
22,000
22,000
38,000
17,000
15,000
44,000
25,000
Income tax expense (benefit)
40,807
35,509
(80,485)
24,355
30,463
76,316
51,536
Pre-tax pre-provision net revenue from continuing operations
$ 200,279
$ 174,487
$ (306,222)
$ 128,507
$ 152,725
$ 374,766
$ 256,805
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing Operations
Income (loss) from continuing operations
$ 137,472
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 254,450
$ 180,269
Plus: Provision for credit losses
22,000
22,000
38,000
17,000
15,000
44,000
25,000
Merger expense
—
—
—
—
122
—
5,192
Incremental merger related expense
—
—
7,500
—
1,671
—
10,631
Gain on extinguishment of debt
(1,098)
(576)
(652)
—
(1,140)
(1,674)
(1,140)
Restructuring and other nonroutine expenses
6,675
251
41,522
9,596
6,219
6,926
6,431
Pension settlement expense
—
—
11,226
600
—
—
—
Income tax expense (benefit)
40,807
35,509
(80,485)
24,355
30,463
76,316
51,536
Less: Security (losses) gains, net
(4)
(9)
(384,524)
64
69
(12)
(51,192)
Gain on sale of businesses
14,980
—
—
—
—
14,980
—
Nonroutine (losses) gains, net
—
—
—
(6,653)
—
—
—
Adjusted pre-tax pre-provision net revenue from continuing operations
$ 190,880
$ 174,171
$ 137,898
$ 145,292
$ 159,528
$ 365,050
$ 329,111
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Total Adjusted Revenue
Net interest revenue
$ 356,318
$ 353,908
$ 334,605
$ 328,960
$ 333,527
$ 710,226
$ 687,791
Total Adjusted Noninterest Revenue
Total noninterest revenue
$ 100,658
$ 83,786
$ (311,460)
$ 73,989
$ 86,664
$ 184,444
$ 121,127
Less: Security (losses) gains, net
(4)
(9)
(384,524)
64
69
(12)
(51,192)
Gain on sale of businesses
14,980
—
—
—
—
14,980
—
Nonroutine gains (losses), net
—
—
—
(6,653)
—
—
—
Total adjusted noninterest revenue
$ 85,682
$ 83,795
$ 73,064
$ 80,578
$ 86,595
$ 169,476
$ 172,319
Total adjusted revenue
$ 442,000
$ 437,703
$ 407,669
$ 409,538
$ 420,122
$ 879,702
$ 860,110
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Total Adjusted Noninterest Expense
Total noninterest expense
$ 256,697
$ 263,207
$ 329,367
$ 274,442
$ 267,466
$ 519,904
$ 552,113
Less: Merger expense
—
—
—
—
122
—
5,192
Incremental merger related expense
—
—
7,500
—
1,671
—
10,631
Gain on extinguishment of debt
(1,098)
(576)
(652)
—
(1,140)
(1,674)
(1,140)
Restructuring and other nonroutine expenses
6,675
251
41,522
9,596
6,219
6,926
6,431
Pension settlement expense
—
—
11,226
600
—
—
—
Total adjusted noninterest expense
$ 251,120
$ 263,532
$ 269,771
$ 264,246
$ 260,594
$ 514,652
$ 530,999
Quarter Ended
Year-to-date
(In thousands)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
Total Tangible Assets, Excluding AOCI
Total assets
$ 47,984,078
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 47,984,078
$ 48,838,660
Less: Goodwill
1,366,923
1,367,785
1,367,785
1,367,785
1,367,785
1,366,923
1,367,785
Other identifiable intangible assets
91,027
96,126
100,191
104,596
109,033
91,027
109,033
Total tangible assets
46,526,128
46,849,952
47,466,534
47,050,629
47,361,842
46,526,128
47,361,842
Less: AOCI
(782,462)
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(782,462)
(1,163,075)
Total tangible assets, excluding AOCI
$ 47,308,590
$ 47,641,285
$ 48,228,363
$ 48,360,550
$ 48,524,917
$ 47,308,590
$ 48,524,917
Quarter Ended
Year-to-date
(Dollars in thousands, except per share data)
Jun 2024
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Jun 2024
Jun 2023
PERIOD END BALANCES:
Total Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,287,758
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$5,287,758
$4,485,850
Less: AOCI
(782,462)
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(782,462)
(1,163,075)
Total shareholders’ equity, excluding AOCI
$6,070,220
$5,981,265
$5,929,672
$5,705,178
$5,648,925
$6,070,220
$5,648,925
Common Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,287,758
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$5,287,758
$4,485,850
Less: preferred stock
166,993
166,993
166,993
166,993
166,993
166,993
166,993
Common shareholders’ equity
5,120,765
5,022,939
5,000,850
4,228,264
4,318,857
5,120,765
4,318,857
Less: AOCI
(782,462)
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(782,462)
(1,163,075)
Common shareholders’ equity, excluding AOCI
$5,903,227
$5,814,272
$5,762,679
$5,538,185
$5,481,932
$5,903,227
$5,481,932
Total Tangible Common Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,287,758
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$5,287,758
$4,485,850
Less: Goodwill
1,366,923
1,367,785
1,367,785
1,367,785
1,367,785
1,366,923
1,367,785
Other identifiable intangible assets
91,027
96,126
100,191
104,596
109,033
91,027
109,033
Preferred stock
166,993
166,993
166,993
166,993
166,993
166,993
166,993
Total tangible common shareholders’ equity
3,662,815
3,559,028
3,532,874
2,755,883
2,842,039
3,662,815
2,842,039
Less: AOCI
(782,462)
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(782,462)
(1,163,075)
Total tangible common shareholders’ equity, excluding AOCI
$4,445,277
$4,350,361
$4,294,703
$4,065,804
$4,005,114
$4,445,277
$4,005,114
AVERAGE BALANCES:
Total Tangible Common Shareholders’ Equity
Total shareholders’ equity
$5,207,254
$5,194,048
$4,507,343
$4,505,162
$4,539,353
$5,200,651
$4,468,302
Less: Goodwill
1,367,358
1,367,785
1,367,916
1,367,785
1,367,785
1,367,572
1,367,785
Other identifiable intangible assets
93,743
98,350
102,765
107,032
113,094
96,047
115,294
Preferred stock
166,993
166,993
166,993
166,993
166,993
166,993
166,993
Total tangible common shareholders’ equity
$3,579,160
$3,560,920
$2,869,669
$2,863,352
$2,891,481
$3,570,039
$2,818,230
Total average assets
$48,192,719
$48,642,540
$48,444,176
$48,655,138
$49,067,121
$48,417,630
$48,860,807
Total shares of common stock outstanding
182,430,427
182,681,325
182,871,775
182,611,075
182,626,229
182,430,427
182,626,229
Average shares outstanding-diluted
185,260,963
185,574,130
182,688,190
184,645,004
183,631,570
185,417,547
183,770,759
Tangible common shareholders’ equity to tangible assets (1)
7.87 %
7.60 %
7.44 %
5.86 %
6.00 %
7.87 %
6.00 %
Tangible common shareholders’ equity, excluding AOCI, to tangible assets, excluding AOCI (2)
9.40
9.13
8.90
8.41
8.25
9.40
8.25
Return on average tangible common equity from continuing operations (3)
15.18
12.94
(36.79)
11.75
14.55
14.07
12.56
Return on average tangible common equity (4)
15.18
12.94
35.49
12.50
15.49
14.07
13.30
Adjusted return on average tangible common equity from continuing operations (5)
14.37
12.92
10.06
13.53
15.27
13.65
16.52
Adjusted return on average assets from continuing operations (6)
1.09
0.97
0.62
0.82
0.92
1.03
0.97
Adjusted return on average common shareholders’ equity from continuing operations (7)
10.21
9.15
6.65
8.93
10.10
9.68
10.82
Pre-tax pre-provision net revenue from continuing operations to total average assets (8)
1.67
1.44
(2.51)
1.05
1.25
1.56
1.06
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (9)
1.59
1.44
1.13
1.18
1.30
1.52
1.36
Tangible book value per common share (10)
$ 20.08
$ 19.48
$ 19.32
$ 15.09
$ 15.56
$ 20.08
$ 15.56
Tangible book value per common share, excluding AOCI (11)
24.37
23.81
23.48
22.26
21.93
24.37
21.93
Adjusted earnings from continuing operations per common share (12)
$ 0.69
$ 0.62
$ 0.40
$ 0.53
$ 0.60
$ 1.31
$ 1.26
Adjusted dividend payout ratio from continuing operations (13)
36.23 %
40.32 %
58.75 %
44.34 %
39.17 %
38.17 %
37.30 %
Definitions of Non-GAAP Measures:
(1)
Tangible common shareholders’ equity to tangible assets is defined by the Company as total shareholders’ equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.
(2)
Tangible common shareholders’ equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders’ equity less preferred stock, goodwill, other identifiable intangible assets and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other identifiable intangible assets.
(3)
Return on average tangible common equity from continuing operations is defined by the Company as annualized income available to common shareholders from continuing operation divided by average tangible common shareholders equity.
(4)
Return on average tangible common equity is defined by the Company as annualized income available to common shareholders divided by average tangible common shareholders equity.
(5)
Adjusted return on average tangible common equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average tangible common shareholders’ equity.
(6)
Adjusted return on average assets from continuing operations is defined by the Company as annualized adjusted income from continuing operations divided by total average assets.
(7)
Adjusted return on average common shareholders’ equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average common shareholders’ equity.
(8)
Pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue from continuing operations divided by total average assets.
(9)
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue from continuing operations divided by total average assets adjusted for items included in the definition and calculation of adjusted income.
(10)
Tangible book value per common share is defined by the Company as tangible common shareholders’ equity divided by total shares of common stock outstanding.
(11)
Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders’ equity less accumulated other comprehensive loss divided by total shares of common stock outstanding.
(12)
Adjusted earnings from continuing operations per common share is defined by the Company as adjusted income available to common shareholders from continuing operations divided by average common shares outstanding-diluted.
(13)
Adjusted dividend payout ratio from continuing operations is defined by the Company as common share dividends divided by adjusted income available to common shareholders from continuing operations.
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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