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.
Highlights for the second quarter of 2024 included:
- Reported quarterly net income available to common shareholders
of $135.1 million, or $0.73 per diluted common share, and adjusted net
income from continuing operations available to common
shareholders,(1) which excludes non-routine income and
expenses,(2) of $127.9
million, or $0.69 per diluted
common share, which represents an increase of $0.07 per share, or 11.3%, compared to the first
quarter of 2024 adjusted net income from continuing operations
available to common shareholders.(1)
- Achieved record adjusted pre-tax pre-provision net revenue from
continuing operations (PPNR)(1) of $190.9 million, up $16.7
million from the prior quarter, and up $31.4 million from the same quarter one year ago.
Year-to-date, adjusted PPNR(1) is $365.1 million, up $35.9
million or 11.0%, from the same period in 2023.
- Generated net organic loan growth of $430.2 million, or 5.3% on an annualized basis,
for the second quarter of 2024. Year-to-date, net loan growth was
$815.8 million or 5.0%
annualized.
- Grew core customer deposits, which exclude brokered deposits
and public funds, by $237.4 million,
or 2.9% on an annualized basis. Year-to-date, core customer
deposits have grown $637.2 or 4.0%
annualized.
- Continued improvement in net interest margin by 5 basis points
to 3.27%, benefiting from continued loan growth, stabilized funding
costs, and upward repricing of earning assets.
- Experienced stable credit quality reflected by a flat linked
quarter provision for credit losses and relatively stable net
charge-offs as well as slight reductions in both nonperforming and
criticized/classified loan levels.
- Materially enhanced operating efficiency reflected in an
improvement in the adjusted efficiency ratio(1) of 339
basis points to 56.7%.
- Repurchased 256,033 shares of Company common stock during the
second quarter at a weighted average price of $26.97 per share; regulatory capital remained
strong with Common Equity Tier 1 Capital of 11.9% and Total Capital
of 14.2%.
"We are pleased to report another quarter of improved financial
performance in virtually every aspect of our business," remarked
Dan Rollins, Chairman and Chief
Executive Officer of Cadence Bank.
"Our second quarter results reflect steady loan and core customer
deposit growth combined with stable funding costs, which led to
additional improvement in our net interest margin. Importantly, our
credit quality metrics remained stable, reflected by a flat linked
quarter provision for credit losses and slight improvement in our
past due loans as well as criticized and classified loans. Finally,
our efforts to improve efficiency continue to be evident in the
linked quarter decline in adjusted noninterest expense and
continued improvement in our adjusted efficiency ratio to 56.7% in
the second quarter."
Earnings Summary
All adjusted financial results discussed herein are adjusted
results from continuing operations.(3)
For the second quarter of 2024, the Company reported net income
available to common shareholders of $135.1
million, or $0.73 per diluted
common share, up from $111.7 million,
or $0.61 per diluted common share,
for the second quarter of 2023 and $114.6
million, or $0.62 per diluted
common share, for the first quarter of 2024. Adjusted net income
available to common shareholders from continuing
operations(1) increased to $127.9
million, or $0.69 per diluted
common share, for the second quarter of 2024, compared with
$110.1 million, or $0.60 per diluted common share, for the second
quarter of 2023 and $114.4 million,
or $0.62 per diluted common share,
for the first quarter of 2024.
Additionally, the Company reported adjusted PPNR from continuing
operations(1) of $190.9
million, or 1.59% of average assets on an annualized basis,
for the second quarter of 2024, an increase of $16.7 million, or 9.6%, compared to the first
quarter of 2024, and an increase of $31.4
million or 19.7% compared to the same quarter of 2023.
These notable increases in financial performance were driven by
improved operating efficiency, improved net interest margin, and
continued improvement in earning asset mix.
Net Interest Revenue
Net interest revenue, driven by continued improvement in net
interest margin, increased to $356.3
million for the second quarter of 2024, compared to
$333.5 million for the second quarter
of 2023 and $353.9 million for the
first quarter of 2024. The net interest margin (fully taxable
equivalent) improved to 3.27% for the second quarter of 2024,
compared with 3.03% for the second quarter of 2023 and 3.22% for
the first quarter of 2024.
Net interest revenue increased $2.4
million, or 0.7%, compared to the first quarter of 2024 as
the Company continues to benefit from slowing pressure on funding
costs as well as an improved earning asset mix resulting from
continued deployment of excess liquidity and net loan growth.
Purchase accounting accretion revenue was $3.0 million and $3.5
million for the second quarter of 2024 and the first quarter
of 2024, respectively. Average earning assets declined slightly to
$43.9 billion, as growth in average
loans was offset by lower average investment securities and excess
cash.
Yield on net loans, loans held for sale, and leases excluding
accretion, was 6.56% for the second quarter of 2024, up 10 basis
points from 6.46% for the first quarter of 2024. Investment
securities yielded 3.19% in the second quarter of 2024, up 6
basis points from 3.13% in the first quarter of 2024, and up 106
basis points from 2.13% in the second quarter of 2023, reflective
of the securities restructurings that occurred in 2023. As a
result, the yield on total interest earning assets increased to
5.90% for the second quarter of 2024, up 10 basis points from 5.80%
for the first quarter of 2024.
The average cost of total deposits was 2.53% for the second
quarter of 2024, up 8 basis points compared to the first quarter of
2024. The second quarter increase in total deposit costs was the
lowest quarterly increase cycle-to-date. Total interest-bearing
liabilities cost was 3.45% for the second quarter of 2024 compared
to 3.40% for the first quarter of 2024.
Balance Sheet Activity
Loans and leases, net of unearned income, increased $430.2 million during the second quarter, or 5.3%
annualized to $33.3 billion.
The loan growth for the quarter was in the commercial and
industrial, income-producing commercial real estate and residential
mortgage portfolios.
Total deposits were $37.9 billion
as of June 30, 2024, a decline of
$261.6 million from the prior
quarter. The second quarter's decline included a $50.0 million reduction in brokered deposits to
$452.2 million, and a decline of
$449.0 million in public funds to
$4.3 billion at June 30, 2024. Importantly, core customer
deposits, which excludes brokered deposits and public funds,
reflected organic growth of approximately $237.4 million compared to March 31, 2024.
The June 30, 2024 loan to deposit
ratio was 88.0% and securities to total assets was 16.5%,
reflecting continued strong liquidity. Noninterest bearing deposits
represented 22.7% of total deposits at the end of the second
quarter of 2024, down slightly from 23.1% at March 31, 2024, as the pace of migration to
interest bearing products continued to slow.
Total investment securities declined $0.4
billion during the quarter to $7.9
billion at June 30, 2024.
Cash, due from balances and deposits at the Federal Reserve
declined $0.4 billion to $2.6 billion at June 30,
2024, as the Company continues to utilize securities
portfolio cash flow and excess liquidity to fund loan growth and
reduce reliance on higher cost funding.
In June 2024, the Company called
$138.9 million in fixed-to-floating
subordinated debt at par. This debt was yielding 5.65%;
however, was set to reprice to a weighted-average rate of
SOFR+3.76% after the June call date. This debt repayment is
estimated to be positive to earnings by approximately $5.0 million pre-tax over the next 12 months.
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.
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(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.
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(2) See Table 14 for
detail on non-routine income and expenses.
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(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.
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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.
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Table
1
Selected Financial
Data
(Unaudited)
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|
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Quarter
Ended
|
|
Year-to-date
|
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(In
thousands)
|
Jun 2024
|
Mar 2024
|
Dec 2023
|
Sep 2023
|
Jun 2023
|
|
Jun 2024
|
Jun 2023
|
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Earnings
Summary:
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|
|
|
|
|
|
|
|
|
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
|
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Noninterest
expense
|
256,697
|
263,207
|
329,367
|
274,442
|
267,466
|
|
519,904
|
552,113
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Income (loss) from
continuing operations before income taxes
|
178,279
|
152,487
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(344,222)
|
111,507
|
137,725
|
|
330,766
|
231,805
|
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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
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(263,737)
|
87,152
|
107,262
|
|
254,450
|
180,269
|
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Income from
discontinued operations, net of taxes
|
—
|
—
|
522,801
|
5,431
|
6,766
|
|
—
|
10,388
|
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Net income
|
137,472
|
116,978
|
259,064
|
92,583
|
114,028
|
|
254,450
|
190,657
|
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Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
4,744
|
4,744
|
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Net income available to
common shareholders
|
$
135,100
|
$
114,606
|
$
256,692
|
$
90,211
|
$
111,656
|
|
$
249,706
|
$
185,913
|
|
|
|
|
|
|
|
|
|
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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.
|
|
|
Efficiency Ratio-Fully Taxable Equivalent and Adjusted
Efficiency Ratio-Fully Taxable Equivalent Definitions
The efficiency ratio and the adjusted efficiency ratio are
supplemental financial measures utilized in management's internal
evaluation of the Company's use of resources and are not defined
under GAAP. The efficiency ratio is calculated by dividing total
noninterest expense by total revenue, which includes net interest
income plus noninterest income plus the tax equivalent adjustment
from continuing operations. The adjusted efficiency ratio excludes
income and expense items otherwise disclosed as non-routine from
total noninterest expense from continuing operations.
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SOURCE Cadence Bank